MCI COMMUNICATIONS CORP WASHINGTON JOHN WHITESIDE 37 YEARS OLD VICE PRESIDENT OF CORPORATE DEVELOPMENT WAS NAMED A SENIOR VICE PRESIDENT HIS ADDITIONAL DUTIES WILL INCLUDE SUCCESSFUL COMPLETION AND IMPLEMENTATION OF MCI'S ALLIANCE WITH BRITISH TELECOMMUNICATIONS PLC THE BRITISH COMPANY PURCHASED A 20 STAKE IN MCI FOR 43 BILLION MCI HAS 17 OTHER SENIOR VICE PRESIDENTS 9308030152 930803 BUSINESS BRIEF SOUTHLAND POSTS NET OF 193 MILLION FIRST QUARTERLY PROFIT IN ABOUT 2 YEARS DALLAS SOUTHLAND CORP CITING CONTINUED IMPROVEMENTS AT ITS 7ELEVEN CHAIN OF CONVENIENCE STORES POSTED SECONDQUARTER NET INCOME OF 193 MILLION OR FIVE CENTS A SHARE MARKING THE COMPANY'S FIRST QUARTERLY PROFIT IN NEARLY TWO YEARS THE NET INCOME COMPARES WITH A YEAREARLIER LOSS OF 179 MILLION OR FOUR CENTS A SHARE MOSTLY A RESULT OF 175 MILLION IN SEVERANCE COSTS FOLLOWING NEWS OF THE RESULTS SOUTHLAND WAS AMONG THE MOST ACTIVELY TRADED STOCKS YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING THE ISSUE CLOSED AT 5 UP 1875 CENTS IN COMPOSITE TRADING THE COMPANY WHICH EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS IN EARLY 1991 REPORTED REVENUE OF ABOUT 179 BILLION DURING THE MOST RECENT PERIOD DOWN NEARLY 10 FROM A YEAR EARLIER BECAUSE THE COMPANY NOW OPERATES ABOUT 350 FEWER CONVENIENCE STORES ALTHOUGH SECONDQUARTER SALES DROPPED AT 7ELEVEN STORES OPEN FOR AT LEAST A YEAR THE COMPANY SAID THE STORES' MERCHANDISE GROSS PROFIT MARGIN ROSE 121 PERCENTAGE POINTS OVER THE SAME PERIOD LAST YEAR PROFIT ON GASOLINE WAS 119 CENTS A GALLON COMPARED WITH 101 CENTS A YEAR EARLIER THE COMPANY SAID SOUTHLAND IN A STATEMENT REITERATED ITS BELIEF THAT IT WILL REPORT A PROFIT IN 1993 THANKS TO LOWER INTEREST EXPENSES AND REDUCED OPERATING COSTS THE COMPANY LAST REPORTED A QUARTERLY NET PROFIT IN THE THIRD QUARTER OF 1991 AS FOR 1993 THIRD QUARTER SOUTHLAND SAID IT EXPECTS TO RECORD AN EXTRAORDINARY GAIN OF ABOUT 100 MILLION FROM THE REDEMPTION OF ITS 12 SENIOR NOTES DUE DEC 15 1996 THE BONDS WHICH HAVE A FACE VALUE OF 2506 MILLION WILL BE REDEEMED AUG 30 THE COMPANY SAID IT WILL USE THE PROCEEDS FROM A NEW 150 MILLION BANK LINE ALONG WITH WORKING CAPITAL TO REDEEM THE NOTES FOR THE FIRST SIX MONTHS OF 1993 SOUTHLAND REPORTED NET OF 34 MILLION OR ONE CENT A SHARE VS A LOSS OF 629 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE DROPPED TO 338 BILLION FROM 376 BILLION FOR THE FIRST SIX MONTHS OF 1992 9308030150 930803 HOME LENDING MERGER COMPLETE TUKWILA WASH HOME LENDING ASSOCIATES INC SAID IT COMPLETED A MERGER WITH HILLTOP PRODUCTS INC AND DEMARK FINANCIAL INC AND WILL BEGIN TRADING ON THE OVERTHECOUNTER MARKET UNDER THE MERGER HOME LENDING WHICH HAD BEEN PRIVATELY HELD ISSUED 34 MILLION COMMON SHARES OR ABOUT 55 OF THE NEW COMPANY'S COMMON STOCK OUTSTANDING TO ITS FORMER SHAREHOLDERS THE MORTGAGE COMPANY SAID IT INTENDS TO RAISE CAPITAL TO FUND LOANS AND ACCELERATE EXPANSION 9308030149 930803 WHO'S NEWS SERAGEN INC SERAGEN INC HOPKINTON MASS THOMAS N KONATICH FORMER CHIEF FINANCIAL OFFICER AND CORPORATE TREASURER OF OHMICRON CORP WAS NAMED VICE PRESIDENT FOR FINANCE AND CHIEF FINANCIAL OFFICER HE WILL BE RESPONSIBLE FOR PLANNING DIRECTING AND MANAGING CORPORATE FINANCE AND BUSINESS DEVELOPMENT ACTIVITIES THE POSTS HAD BEEN UNFILLED 9308030148 930803 WHO'S NEWS QUANEX CORP QUANEX CORP HOUSTON VERNON E OECHSLE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF ALLIEDSIGNAL INC'S AUTOMOTIVE SECTOR HAS BEEN NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS STEEL CONCERN EFFECTIVE THIS PAST SUNDAY MR OECHSLE 50 YEARS OLD FILLS VACANCIES LEFT WHEN ROBERT C SNYDER 59 WAS MADE PRESIDENT AND CHIEF EXECUTIVE OFFICER IN OCTOBER CARL PFEIFFER 63 REMAINS CHAIRMAN 9308030147 930803 LETTERS TO THE EDITOR READ MY DECEPTION PAUL GIGOT'S OTHERWISE PERCEPTIVE JULY 16 COMMENTARY ON THE NEW JERSEY GUBERNATORIAL RACE LAUDS FORMER REPUBLICAN GOV TOM KEAN'S 1981 VICTORY OVER CURRENT DEMOCRATIC GOV JIM FLORIO ON A TAXCUTTING PLATFORM TRUE AS FAR AS IT GOES BUT IN HIS FIRST YEAR IN OFFICE TOM KEAN SIGNED A 340 MILLION ANNUAL INCREASE IN SALES AND INCOME TAXES KICKING OFF A VICIOUS SPIRAL IN MARGINAL RATES THAT WORSENED UNDER MR FLORIO READ MY LIPS TOM KEAN WAS A GEORGE BUSH REPUBLICAN BEFORE GEORGE BUSH EVER HEARD OF NO NEW TAXES 9308030146 930803 TECHNOLOGY BRIEF JOHNSON & JOHNSON FDA APPROVES SALE BY UNIT OF A HEARTBURN MEDICATION A JOHNSON & JOHNSON UNIT SAID THE FOOD AND DRUG ADMINISTRATION APPROVED THE SALE OF A PRODUCT USED TO TREAT A TYPE OF NOCTURNAL HEARTBURN THE UNIT JANSSEN PHARMACEUTICA SAID ITS PROPULSID BRAND OF CISAPRIDE TABLETS CAN HELP COUNTER THE MOST COMMON SYMPTOM OF REFLUX DISEASE HEARTBURN CAUSED BY THE BACKWARD FLOW OF STOMACH CONTENTS INTO THE ESOPHAGUS THE DISEASE CAN CAUSE THE BURNING SENSATION OF HEARTBURN ULCERATION AND A POTENTIALLY MORE SERIOUS CONDITION KNOWN AS BARRETT'S ESOPHAGUS CISAPRIDE IS ALREADY SOLD INTERNATIONALLY IN MORE THAN 60 COUNTRIES THE NEW BRUNSWICK NJ COMPANY ADDED 9308030145 930803 FINANCING BUSINESS NATIONSBANK CORP NATIONSBANK CORP CHARLOTTE NC THIS BANKING COMPANY SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE ISSUANCE OF UP TO 4 BILLION IN CORPORATE DEBT SECURITIES AND STOCK PROCEEDS WOULD BE USED FOR WORKING CAPITAL REDUCTION OF DEBT AND POTENTIAL ACQUISITIONS NATIONSBANK SAID IT HAS NO DEFINITE TIMETABLE FOR ISSUING NEW SECURITIES 9308030144 930803 MARKETSCAN COBRANDING AIMS TO DOUBLE THE APPEAL BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL IF ONE IS GOOD SURELY TWO MUST BE BETTER TODAY AMID PRIVATELABEL PARANOIA AND DOUBTS ABOUT THE SANCTITY OF EVEN THE MOST POWERFUL BRANDS THE IDEA OF DOUBLE BRANDING PRODUCTS IS RAPIDLY WINNING CONVERTS GENERAL MILLS INC FOR EXAMPLE RECENTLY INTRODUCED TWO DESSERTBAR MIXES ONE BETTY CROCKER SUPREME M&M'S COOKIE BARS CONTAINS PACKETS OF THE POPULAR CANDIES THE OTHER NOTES THAT THE PRESERVES FOR ITS RASPBERRY BARS COME FROM KRAFT BOTH PRODUCTS JOIN A LINEUP OF BETTY CROCKER MIXES TOUTING NAMEBRAND INGREDIENTS KRAFT CARAMELS BITS OF HEATH TOFFEE CANDY REESE'S PEANUT BUTTER CHIPS HERSHEY'S CHOCOLATE SYRUP AND SUNKIST LEMONS WHILE BETTY CROCKER IS A POWERHOUSE BRAND GENERAL MILLS FIGURED THAT USING BRANDED INGREDIENTS COULDN'T HURT IT GUARANTEES TO THE CONSUMER THIS WILL BE A GOOD PRODUCT SAYS A SPOKESWOMAN FOR THE MINNEAPOLISBASED COMPANY COBRANDING AS THE CONCEPT IS CALLED HAS BEEN AROUND FOR YEARS BUT HAS RECENTLY BLOOMED ANEW MARKETING INTELLIGENCE SERVICE LTD NAPLES NY WHICH TRACKS DOUBLETRADEMARK PRODUCTS SAYS THE NUMBER OF ITEMS IS DEFINITELY RUNNING AHEAD OF LAST YEAR MOREOVER WHILE FOOD IS THE MOST POPULAR APPLICATION THE APPROACH IS SPREADING FOR INSTANCE A CUTEX NAIL POLISH REMOVER FEATURES KNOX GELATIN TO STRENGTHEN NAILS FOR THE MOST PART YOU CAN'T MAKE A PRODUCT MUCH BETTER THAN IT'S BEING MADE ALREADY SO USING A NAMEBRAND INGREDIENT GIVES A MANUFACTURER SOMETHING DISTINCTIVE SAYS ELINOR SELAME PRESIDENT OF BRANDEQUITY INTERNATIONAL A NEWTON MASS CONSULTING FIRM COBRANDING HELPS CONSUMERS DIFFERENTIATE BETWEEN WHAT OTHERWISE MAY SEEM TO BE COMMODITY PRODUCTS SHE SAYS ACCORDINGLY SHE WONDERS WHY ONE OF THE CEREAL GIANTS HASN'T GONE TO A BRANDED RAISIN FOR ITS RAISIN BRAN NAMEBRAND INGREDIENTS HAVE HELPED MAKE ITS COOKIES LEADERS IN THEIR NICHES SAY OFFICIALS AT DELICIOUS COOKIE CO WHICH FEATURES FOUR BRANDS THAT PROMOTE SOMEONE ELSE'S INGREDIENTS INCLUDING THE BUTTER AMONG THE MOST POPULAR IS THIS COBRANDED MOUTHFUL SKIPPY AND WELCH'S PEANUT BUTTER AND JELLY COOKIES WE'RE GOING TO PURSUE THE CONCEPT AGGRESSIVELY SAYS PHILLIP ROOS MARKETING VICE PRESIDENT AT THE DES PLAINES ILL BAKER WE SEE IT AS RIGHT FOR THE TIMES INDEED ALL BUT ONE COBRANDED ITEM SURVEYED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE POSTED HEALTHY SALES GAINS IN THE PAST 52 WEEKS THE EXCEPTION WAS RALSTON PURINA CO'S CRANBERRY WALNUT MUESLI CEREAL WITH OCEAN SPRAY CRANBERRIES WHICH DECLINED 34 FROM A YEAR EARLIER A RALSTON SPOKESMAN SAYS THE COMPANY HAS SINCE ADDED TWO OTHER MUESLI CEREALS AND THAT ALL THREE CEREALS ARE DOING WELL FINANCIAL ARRANGEMENTS BETWEEN COBRANDERS VARY MOST COMPANIES WON'T DISCLOSE DETAILS BUT MICHAEL LOUDON A MARKETING DIRECTOR AT SUNKIST GROWERS INC IN ONTARIO CALIF SAYS THE AGREEMENT WITH GENERAL MILLS OVER THE BETTY CROCKER SUNKIST LEMON BARS HAS TWO REVENUE STREAMS SUNKIST SELLS GENERAL MILLS INGREDIENTS HE SAYS AND FOR THEIR USE OF OUR TRADEMARK THEY PAY US A ROYALTY HAVING ONE'S BRAND NAME ON ANOTHER COMPANY'S PACKAGE MEANS MORE PUBLICITY WITH THE OTHER GUY PICKING UP THE TAB SO SOME MANUFACTURERS PREFER TO PIGGYBACK THEIR OWN BRANDS AT KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS KRAFT PASTA SALAD CONTAINS KRAFTBRAND MAYONNAISE THE COMPANY'S OSCAR MAYER MEAT UNIT USES JELLO PUDDINGS AND KOOLAID DRINK TWO OTHER INHOUSE PRODUCTS AS WELL AS KRAFT CHEESES IN ITS LUNCHABLES LINE OF SNACK MEALS AT CAMPBELL SOUP CO MRS PAUL'S FISH STICKS FEATURE THE COMPANY'S PEPPERIDGE FARM BREAD CRUMBS BUT PIGGYBACKING DOESN'T ALWAYS WORK RALSTON ONCE INTRODUCED A BREAKFAST CEREAL BASED ON ITS CONTINENTAL BAKING CO UNIT'S WONDER BREAD FEATURING BREADSHAPED PIECES ALTHOUGH ADS BALLYHOOED WONDER BRAND CEREAL AS THE GREATEST THING SINCE SLICED BREAD CONSUMERS WEREN'T CONVINCED AND THE PRODUCT DIED IN TESTING THEORETICALLY COBRANDING CAN BE RISKY A PROBLEM WITH THE BRANDED INGREDIENT ELSEWHERE COULD HURT EVERY PRODUCT IT'S IN AND THE REPUTATIONS OF INGREDIENT PROVIDERS COULD BE DAMAGED IF THE COBRANDED PRODUCT BOMBED WHAT'S MORE ANYBODY SHOULD WORRY ABOUT OVEREXPOSURE SAYS CAROL O'DONNELL MARKETING VICE PRESIDENT AT LEAF INC THE BANNOCKBURN ILLBASED MAKER OF HEATH BARS AMONG THE COUNTRY'S MOST UBIQUITOUS BRANDED INGREDIENTS NOT ONLY DO MANY ICE CREAM AND FROZEN YOGURT COMPANIES FLAVOR ITEMS WITH THE TOFFEEFLAVORED CANDY BUT THERE ALSO ARE HEATH BAR COOKIES CHEESECAKE AND POPCORN MS O'DONNELL SAYS IT'S IMPORTANT THAT HEATH AND ITS COBRANDING PARTNERS ARE COMPATIBLE AND BUILD ON EACH OTHER AFTER DAIRY QUEEN ADDED HEATH BAR AS A TOPPING FOR ITS FROZEN BLIZZARD TREATS RETAIL SALES OF THE CANDY BAR JUMPED SHE SAYS TWO OTHER AGGRESSIVE BRANDEDINGREDIENTS MAKERS ARE FRUIT PROCESSING GIANTS OCEAN SPRAY CRANBERRIES INC AND SUNKIST GROWERS EACH HAS A BUSHEL OF COBRANDING PARTNERS TRADEMARKS MAKE PRODUCTS MORE SALABLE SAYS MR LOUDON OCEAN SPRAY A GROWERS' COOPERATIVE BASED IN LAKEVILLEMIDDLEBORO MASS USES COBRANDING AS A WAY TO BREAK DOWN STEREOTYPES ABOUT CRANBERRIES AND EXTEND THEIR USE BEYOND HOLIDAYS THUS OCEAN SPRAY'S NAME IS ON A POTPOURRI OF PRODUCTS FROM RALSTON'S MUESLI TO MRS SMITH'S APPLE CRANBERRY BAKE N SERVE PIE AND NABISCO'S NEW CRANBERRY NEWTONS WHEN THE COOKIES MADE THEIR DEBUT NABISCO AND OCEAN SPRAY STAGED A MOCK WEDDING CEREMONY COMPLETE WITH ENGRAVED INVITATIONS FOR THE MEDIA BUT BRANDED INGREDIENTS MAKERS ALSO SAY THEY HAVE SPURNED WOULDBE SUITORS SUNKIST'S MR LOUDON SAYS THE COMPANY HAS RECEIVED DOZENS OF PROPOSALS FOR EVERYTHING FROM CHEWING GUM TO SUNTAN LOTION BUT AGREEMENTS COME ONLY IF THE ARRANGEMENT IS ASSOCIATED WITH WHAT MR LOUDON CALLS A GOODFORYOU IMAGE TO STAND OUT ON STORE SHELVES GROWING NUMBERS OF PRODUCTS SUCH AS BEN & JERRY'S HEATH BAR CRUNCH ICE CREAM FAT FREE CRANBERRY NEWTONS AND FRUITFILLED KELLOGG'S POPTARTS FEATURE MORE THAN ONE BRAND NAME 9308030143 930803 PACIFIC SCIENTIFIC BUYS POWERTEC NEWPORT BEACH CALIF PACIFIC SCIENTIFIC CO SAID IT ACQUIRED POWERTEC INDUSTRIAL CORP AN ELECTRIC MOTOR MAKER FOR ABOUT 15 MILLION THE ACQUISITION WILL ADD ABOUT 20 MILLION TO ANNUAL SALES PACIFIC SCIENTIFIC SAID FOR THE YEAR ENDED LAST DEC 15 THE COMPANY REPORTED SALES OF 1727 MILLION POWERTEC WHICH HAD BEEN CLOSELY HELD IS BASED IN ROCK HILL SC AND HAS A MANUFACTURING FACILITY IN JUAREZ MEXICO PACIFIC SCIENTIFIC MAKES ELECTRICAL EQUIPMENT AND AIRCRAFT SAFETY EQUIPMENT 9308030142 930803 ECONOMY CLINTON AIDES MEET WITH UNION LEADERS IN EFFORT TO SOFTEN OPPOSITION TO NAFTA BY KEVIN G SALWEN AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHITE HOUSE OFFICIALS TRYING TO BLUNT OPPOSITION TO THE NORTH AMERICAN FREE TRADE AGREEMENT ARE HOLDING A SERIES OF MEETINGS TO ASK UNION LEADERS FOR HELP WITH THE PACT BUT THE DISCUSSIONS LED BY US TRADE REPRESENTATIVE MICKEY KANTOR APPEAR TO HAVE HAD LITTLE EFFECT ON UNIONS' STRONG DISLIKE FOR NAFTA MR KANTOR SAID HE TALKED BY TELEPHONE WITH UNITED AUTO WORKERS PRESIDENT OWEN BIEBER YESTERDAY IN THE PAST WEEK OR SO HE HAS MET WITH SEVERAL OTHER UNION LEADERS INCLUDING WILLIAM BYWATER PRESIDENT OF THE INTERNATIONAL UNION OF ELECTRICAL WORKERS EARLIER THIS SUMMER HE MET WITH GERALD MCENTEE PRESIDENT OF THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES MR KANTOR AND SEVERAL OTHER CABINET OFFICERS INCLUDING LABOR SECRETARY ROBERT REICH AND COMMERCE SECRETARY RON BROWN HELD A SIMILAR SESSION WITH TEAMSTERS PRESIDENT RONALD CAREY MR KANTOR IS ASKING THE UNION LEADERS FOR ANY SUGGESTIONS THEY MIGHT HAVE TO MAKE NAFTA MORE PALATABLE IN THEIR INDUSTRIES FOR EXAMPLE HE ASKED MR CAREY WHETHER TRUCKERS WOULD LIKE TO ADD ANYTHING TO THE SIDE AGREEMENT ON LABOR STANDARDS CURRENTLY UNDER NEGOTIATION THE ADMINISTRATION'S EFFORT CLEARLY IS DESIGNED TO RELAX FIERCE UNION OPPOSITION TO THE ACCORD PRIVATELY TRADE OFFICIALS WORRY THAT LABOR WILL LAUNCH A JIHAD OR HOLY WAR TO DEFEAT NAFTA WHEN IT COMES TO CONGRESS FOR APPROVAL LATER THIS WEEK MR KANTOR AND TRADE MINISTERS FROM MEXICO AND CANADA HOPE TO WRAP UP SIDE AGREEMENTS TO NAFTA THAT DEAL WITH LABOR AND ENVIRONMENTAL ISSUES I'VE ASKED WHAT CAN WE DO THAT WILL ADDRESS WHAT THE UNIONS PERCEIVE TO BE THE WEAKNESSES IN NAFTA MR KANTOR SAID ADDING THAT HE ALSO HAD MET WITH ENVIRONMENTAL AND BUSINESS GROUPS WHETHER IT HAS A POLITICAL EFFECT WE'LL SEE IN ADDITION THE WHITE HOUSE DESPERATELY WANTS TO KEEP GOOD RELATIONS WITH ORGANIZED LABOR AS IT PREPARES FOR THE BATTLE OVER HEALTHCARE OVERHAUL THE UNIONS ALREADY HAVE PUT TOGETHER A WAR CHEST OF ROUGHLY 4 MILLION TO LOBBY IN FAVOR OF HEALTHCARE CHANGES AND THEY HAVE THEIR PHONE BANKS READY TO GENERATE GRASSROOTS SUPPORT THE ADMINISTRATION IS EAGER NOT TO JEOPARDIZE THAT BACKING BY ANGERING THE UNIONS OVER NAFTA INSTEAD MR BYWATER TRIED TO CONVINCE MR KANTOR THAT THE UNION'S MEMBERS ARE SLIPPING FROM MR CLINTON'S FOLD I SAID MICKEY THE LABOR MOVEMENT IN MY JUDGMENT IS THE ONE THAT ELECTED MR CLINTON I WOULD VOTE FOR CLINTON THE NEXT TIME AROUND BUT I'M TELLING YOU RIGHT NOW I CAN'T DELIVER MY MEMBERS THEY KEEP ASKING ME WHY DON'T YOU GO WITH ROSS PEROT' MR PEROT IS A STAUNCH OPPONENT OF NAFTA TALKS WITH MR CAREY WENT ABOUT AS WELL A TEAMSTERS SPOKESMAN SAYS MR CAREY TOLD CLINTON AIDES THAT NAFTA WILL ENCOURAGE COMPANIES TO MOVE TO MEXICO TO EXPLOIT WORKERS AT 4 A DAY WHILE DESTROYING US AND CANADIAN JOBS SAID MATT WITT THE UNION SPOKESMAN THE TEAMSTERS UNION HAS SENT A PETITION WITH 200000 SIGNATURES TO THE WHITE HOUSE ASKING OFFICIALS TO RIP UP THE CURRENT ACCORD AND START OVER MR WITT SAID THE UNION WILL CONTINUE TO USE SIMILAR TECHNIQUES TO FIGHT THE AGREEMENT JEFF FAUX PRESIDENT OF THE ECONOMIC POLICY INSTITUTE A UNIONBACKED THINK TANK IN WASHINGTON DC SAID THAT UNIONS AREN'T THRILLED WITH THEIR TREATMENT FROM THE WHITE HOUSE AND AREN'T LIKELY TO HELP MUCH ON NAFTA HE SAID THE ADMINISTRATION'S CURRENT TALKS WITH LABOR LEADERS AREN'T LIKELY TO HELP IT'S HARD TO KNOW WHAT THEY'LL GET OUT OF THESE DISCUSSIONS HE SAID I HAVEN'T HEARD ANYONE SAYING THEY CAN BE SUCCESSFUL AT ALL MR KANTOR SAID THE US HAS INSISTED ON PROVISIONS IN THE NAFTA SIDE AGREEMENTS THAT WOULD GIVE INDIVIDUALS MORE ACCESS TO MEXICAN COURTS AND ASSURE THEIR RIGHTS TO PURSUE ENVIRONMENTAL AND LABOR CLAIMS MUCH OF IT IS AGREED TO BY MEXICO HE SAID SEPARATELY THE CONSUMER GROUP PUBLIC CITIZEN ASKED THE US APPEALS COURT HERE TO UPHOLD A RULING BY DISTRICT COURT JUDGE CHARLES RICHEY THAT REQUIRES THE CLINTON ADMINISTRATION TO PREPARE AN ENVIRONMENTAL IMPACT STATEMENT FOR NAFTA IT MAY BE THAT ONLY SOME OF NAFTA'S PROVISIONS WILL HAVE ENVIRONMENTALLY HARMFUL EFFECTS PUBLIC CITIZEN ARGUED IN ITS BRIEF TO THE COURT AN OBJECTIVE ENVIRONMENTAL IMPACT STATEMENT WOULD PERMIT THE PUBLIC AND CONGRESS TO WEIGH THESE EFFECTS PUBLIC CITIZEN FURTHER ARGUED THAT US ENVIRONMENTAL LAW REQUIRES AN IMPACT STATEMENT THE JUSTICE DEPARTMENT HAS CONTENDED THAT THE LAW DOESN'T APPLY TO PRESIDENTIAL ACTIONS A THREEJUDGE PANEL WILL HEAR ARGUMENTS ON THE APPEAL AUG 24 IF THE JUNE 30 RULING ISN'T OVERTURNED THE ADMINISTRATION FEARS THE TRADE AGREEMENT COULD BE KILLED COMPLETING AN ENVIRONMENTAL IMPACT STATEMENT COULD TAKE MONTHS IF NOT YEARS IN A LETTER ATTACHED TO THE PUBLIC CITIZEN BRIEF THE JUSTICE DEPARTMENT SAID THE TRADE REPRESENTATIVE'S OFFICE IS TAKING SUBSTANTIAL STEPS TO COLLECT ADDITIONAL ENVIRONMENTAL DOCUMENTATION THAT COULD BE USED TO COMPLY WITH JUDGE RICHEY'S RULING BUT THE DEPARTMENT SAID THAT A SUBSTANTIAL PART OF THAT EFFORT CAN'T BEGIN UNTIL SIDE AGREEMENTS TO NAFTA ARE COMPLETED 9308030141 930803 GM SNUBS VW BID FOR A CEASEFIRE IN LOPEZ BATTLE BY JOSEPH B WHITE AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP PRESIDENT JOHN F SMITH JR SNUBBED VOLKSWAGEN AG CHAIRMAN FERDINAND PIECH IN A BRIEF PHONE CALL YESTERDAY REFUSING TO DISCUSS A CEASEFIRE IN THE INDUSTRIAL ESPIONAGE CONTROVERSY BETWEEN THE TWO AUTO GIANTS UNTIL MR PIECH RETRACTS CHARGES OF EVIDENCE TAMPERING HE LEVELED AGAINST GM LAST WEEK MR SMITH'S REJECTION OF MR PIECH'S OVERTURE TO CALL A TRUCE IN THE WAR WHICH IS OVER CHARGES THAT VW'S PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA TOOK CONFIDENTIAL PLANS WHEN HE LEFT GM LAST MARCH APPEARED TO MARK ANOTHER SETBACK FOR VW AND MESSRS PIECH AND LOPEZ MR PIECH APPEARS TO BE UNDER INCREASING PRESSURE FROM VW'S SUPERVISORY BOARD AND GERMAN POLITICIANS TO DEFUSE A CONTROVERSY SEEN IN GERMANY AS BAD FOR THE NATIONAL IMAGE BUT MR SMITH EVIDENTLY WON'T MAKE IT EASY FOR MR PIECH EVEN IF THE VW CHAIRMAN TAKES THE PUBLICLY HUMILIATING STEP OF EATING HIS WORDS MR SMITH HIMSELF WOULD DELEGATE CONTACT WITH VW TO A DEPUTY ADAM OPEL AG CHAIRMAN DAVID J HERMAN GM SAID MR HERMAN SAID IN A STATEMENT YESTERDAY HE IS READY TO COMMUNICATE WITH VW BUT IN WRITING NOT IN FACETOFACE MEETINGS AS MR PIECH HAD PROPOSED MR HERMAN SAID HE WOULD WRITE TO VW EXECUTIVES ONLY AFTER MR PIECH'S RETRACTION AND ONLY IF IT WOULDN'T CONFLICT WITH AN INVESTIGATION BY GERMAN PROSECUTORS INTO CHARGES THAT MR LOPEZ AND SEVERAL AIDES PURLOINED BOXES FULL OF GM CONFIDENTIAL DATA MR LOPEZ AND HIS ASSOCIATES HAVE DENIED ANY WRONGDOING LATE YESTERDAY VW ISSUED A STATEMENT THAT IGNORED THE APPARENT SNUBS IN GM'S STATEMENTS INSTEAD MR PIECH STATED THAT HE AND MR SMITH BOTH WERE AGREED THAT THEY WOULD NOW BEGIN A WRITTEN CORRESPONDENCE A GM SPOKESMAN DENIED MR SMITH OR MR HERMAN WOULD CORRESPOND WITH MR PIECH UNTIL HE RETRACTED ACCUSATIONS THAT GM MAY HAVE TAMPERED WITH EVIDENCE NOW IN THE HANDS OF THE DARMSTADT PUBLIC PROSECUTORS AND THAT GM MAY HAVE TRIED TO PLANT INCRIMINATING FILES OR COMPUTER DATA ON VW COMPUTERS A VW SPOKESMAN SAID HE COULDN'T EXPLAIN THE DISCREPANCY VW ALSO SAID THAT MR PIECH EMPHASIZED THAT HE WANTED TO BE ABLE TO RETURN TO HIS DAILY WORK AND TO CARRY OUT COMPETITION BY MEANS OF OUR PRODUCTS BEFORE OUR CUSTOMERS HE SAID HE WAS CONVINCED THAT MR SMITH ALSO HAD GREAT UNDERSTANDING FOR THIS CONCERN LATE LAST WEEK MR PIECH ACCUSED GM OF BEGINNING WHAT HE DUBBED A MUDSLINGING FIGHT BECAUSE IT COULDN'T WIN IN GLOBAL COMPETITION WITH ITS PRODUCTS 9308030140 930803 CALIFORNIA MICROWAVE ACQUISITION SUNNYVALE CALIF CALIFORNIA MICROWAVE INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A UNIT OF TELESCIENCES INC FOR 24 MILLION IN CASH AND AN 8 MILLION FIVEYEAR CONVERTIBLE NOTE THE ELECTRONIC COMMUNICATIONS EQUIPMENT COMPANY SAID IT EXPECTS TO COMPLETE THE ACQUISITION OF TELESCIENCES TRANSMISSION SYSTEMS INC FROM ITS SAN FRANCISCOBASED PARENT BY LATE SEPTEMBER THE UNIT MAKES WIRELESS COMMUNICATIONS EQUIPMENT UNDER THE PACT CALIFORNIA MICROWAVE ALSO COULD MAKE ADDITIONAL PAYMENTS TO TELESCIENCES INC DEPENDING ON THE UNIT'S SALES THROUGH DECEMBER 1994 9308030139 930803 BED BATH & BEYOND OFFERING SPRINGFIELD NJ DOMESTICS AND HOME FURNISHINGS MERCHANDISER BED BATH & BEYOND INC SAID TWO TOP OFFICERS PLAN A SECONDARY OFFERING OF FOUR MILLION COMMON SHARES OF THE COMPANY THE COMPANY SAID IT FILED A REGISTRATION STATEMENT FOR THE OFFERING BY WARREN EISENBERG AND LEONARD FEINSTEIN COCHIEF EXECUTIVE OFFICERS THE OFFERING INCLUDES 32 MILLION SHARES IN THE US AND 800000 SHARES INTERNATIONALLY GOLDMAN SACHS & CO IS LEAD UNDERWRITER THE COMPANY HAS 338 MILLION SHARES OUTSTANDING AFTER THE OFFERING THE TWO EXECUTIVES WILL CONTINUE TO OWN ABOUT 45 OF THE COMPANY 9308030138 930803 INTERNATIONAL ABB WINS AIRPORT CONTRACT ZURICH THE SWEDISHSWISS HEAVY ENGINEERING GROUP ABB ASEA BROWN BOVERI AG RECEIVED A CONTRACT VALUED AT ABOUT 235 MILLION FROM THE GREEK GOVERNMENT TO PROVIDE ELECTRICAL EQUIPMENT AND INSTALLATION WORK AT THE NEW ATHENS AIRPORT AT SPATA THE JOB IS PART OF A 420 MILLION CONTRACT AWARDED TO A CONSORTIUM LED BY ABB'S GERMAN UNIT ABB SCHALTANLAGEN GMBH OF MANNHEIM ABB SAID THE AIRPORT IS SCHEDULED TO BE COMPLETED BY 1998 AT A COST OF ABOUT 23 BILLION IT IS BEING BUILT BY A CONSORTIUM LED BY HOCHTIEF AG OF ESSEN GERMANY 9308030137 930803 FOOD LION TO PAY BIG SETTLEMENT IN LABOR CASE WAGE HOUR CHARGES RESULT IN COST OF 16 MILLION FOR SUPERMARKET CHAIN BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOOD LION INC HAS AGREED TO PAY 16 MILLION IN THE LARGEST SETTLEMENT EVER BY A PRIVATE EMPLOYER OVER WAGE AND HOUR VIOLATIONS THE LABOR DEPARTMENT WILL ANNOUNCE TODAY THE FASTGROWING SUPERMARKET CHAIN WILL SETTLE CHARGES THAT IT HAD MORE THAN 1000 VIOLATIONS OF FEDERAL CHILDLABOR LAWS AND ALSO THAT IT FORCED EMPLOYEES TO WORK OFF THE CLOCK BEYOND THEIR QUITTING TIME ACCORDING TO INDIVIDUALS FAMILIAR WITH THE ACCORD MANY OF THE CHILDLABOR VIOLATIONS INVOLVE TEENAGERS WORKING AROUND HAZARDOUS MACHINERY SUCH AS BALERS THAT ARE USED TO CRUSH CARDBOARD BOXES IN 1987 HUDSON OIL CO AGREED TO PAY MORE THAN 128 MILLION IN BACK WAGES AND DAMAGES TO SETTLE LABOR DEPARTMENT CHARGES INVOLVING WAGE VIOLATIONS THE BIGGEST PRIOR CASE AGAINST A PRIVATE EMPLOYER ACCORDING TO AN AGENCY SPOKESMAN MORE THAN A DECADE AGO THE US POSTAL SERVICE SETTLED A MASSIVE CASE ALLEGING OVERTIME VIOLATIONS AND PAID OUT MORE THAN 400 MILLION IT ISN'T CLEAR WHETHER THE ENTIRE 16 MILLION IN THE FOOD LION SETTLEMENT WILL BE GIVEN TO THE WORKERS AS BACK WAGES FOOD LION ALSO HAS BEEN THE TARGET OF A CAMPAIGN BY THE UNITED FOOD AND COMMERCIAL WORKERS UNION WHICH HAS A SEPARATE PENSIONRELATED LAWSUIT PENDING AGAINST THE COMPANY THE LABOR DEPARTMENT'S CASE IS THE SECOND IN A WEEK AGAINST A MAJOR SUPERMARKET CHAIN LAST WEEK GREAT ATLANTIC & PACIFIC TEA CO AGREED TO PAY 490000 IN CIVIL PENALTIES TO SETTLE MORE THAN 900 ALLEGED VIOLATIONS OF HOURLY RESTRICTIONS ON WORK BY TEENAGERS AND ILLEGALLY USING YOUTHS TO RUN MEATCUTTING AND BALING MACHINERY THE CLINTON ADMINISTRATION CLEARLY IS TRYING TO STEP UP ENFORCEMENT OF THE LABOR LAWS EARLY IN THE REAGAN ADMINISTRATION ENFORCEMENT WAS SHARPLY SCALED BACK BUT IT HAS BEEN REBOUNDING FOR THE PAST SEVERAL YEARS NOW AGENCY OFFICIALS CONTEND THEY ARE TRYING TO INCREASE THE NUMBER OF INSPECTIONS ALBEIT WITHOUT INCREASING THE ENFORCEMENT STAFF WE TAKE THE ENFORCEMENT OF THE LAW AS A VERY SERIOUS PART OF WHAT WE DO SAID ONE SENIOR OFFICIAL FOOD LION SPOKESMAN MIKE MOZINGO CONFIRMED THAT THERE WILL BE A PRESS BRIEFING TODAY BUT HE DECLINED TO SAY WHAT IT WILL BE ABOUT WE'VE BEEN NEGOTIATING FOR SOME TIME WITH THE DEPARTMENT OF LABOR SO WE'LL JUST HAVE TO WAIT AND SEE WHAT COMES OUT OF THESE NEGOTIATIONS HE SAID FOOD LION WHICH IS CONTROLLED BY DELHAIZE LE LION SA OF BELGIUM IS BASED IN SALISBURY NC THE LABOR DEPARTMENT WHICH SAID IT WILL HOLD A PRESS BRIEFING TODAY DECLINED TO COMMENT FURTHER ON THE CASE FOOD LION'S WASHINGTON LAWYER FORMER LABOR DEPARTMENT OFFICIAL GEORGE SALEM ALSO WOULDN'T COMMENT FOOD LION'S CASE WITH THE LABOR DEPARTMENT CAPS A ROUGH EIGHT MONTHS FOR THE 1045STORE CHAIN IN NOVEMBER ABC'S PRIMETIME LIVE BROADCAST A REPORT ALLEGING THAT FOOD LION ROUTINELY REPACKAGED AND SOLD OUTOFDATE MEAT THE SALISBURY NC COMPANY DENIED THE ALLEGATIONS BUT WINNING BACK CUSTOMERS TO ITS STORES IS PROVING A BIGGER CHALLENGE THAN THE CHAIN HAD EXPECTED EARNINGS HAVE SLIPPED IN THE PAST TWO QUARTERS AND AREN'T LIKELY TO REBOUND UNTIL THE FOURTH QUARTER AT THE EARLIEST ANALYSTS SAY THE COMPANY HAD EXPECTED TO HAVE 2000 STORES BY THE END OF THE DECADE BUT APPEARS TO HAVE ABANDONED THAT PLAN IN NATIONAL OVERTHECOUNTER TRADING FOOD LION CLASS B SHARES CLOSED AT 625 UNCHANGED 9308030136 930803 CORESTATES TO PAY ABOUT 320 MILLION FOR CONSTELLATION BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL CORESTATES FINANCIAL CORP REACHED A DEFINITIVE AGREEMENT TO ACQUIRE CONSTELLATION BANCORP OF NEW JERSEY FOR AN ESTIMATED 320 MILLION REFLECTING THE INCREASED INTEREST IN THE SUBURBAN NEW YORK MARKETS PHILADELPHIABASED CORESTATES FINANCIAL AGREED TO PAY AROUND 21 TIMES BOOK VALUE OR ABOUT 1177 A SHARE BASED ON FRIDAY'S CLOSING STOCK PRICES IT BEAT OUT BANK OF NEW YORK CO AND FIRST FIDELITY BANCORP WHICH ALSO HOPED TO ACQUIRE CONSTELLATION PEOPLE CLOSE TO THE TRANSACTION SAY THE AGREEMENT CALLS FOR CORESTATES FINANCIAL TO EXCHANGE 0206 COMMON SHARE FOR EACH COMMON SHARE OF CONSTELLATION BOTH FIRST FIDELITY AND BANK OF NEW YORK DECLINED TO COMMENT IN ADDITION TO THE ACQUISITION PRICE CORESTATES WITH ASSETS VALUED AT 235 BILLION IN PENNSYLVANIA AND NEW JERSEY TOLD ANALYSTS THAT IT FACES ADDITIONAL COSTS OF 107 MILLION IN ADDED LOANLOSS PROVISIONS AND 38 MILLION IN WRITEDOWNS OF FORECLOSED REAL ESTATE THAT'S BECAUSE CONSTELLATION REMAINS PLAGUED WITH HIGH LEVELS OF PROBLEM LOANS REFLECTING THE CONCERN OVER THE ACQUISITION COST IN OVERTHECOUNTER TRADING YESTERDAY CORESTATES SHARES FELL TO 55625 DOWN 150 CONSTELLATION SHARES WHICH HAVE RISEN ABOUT 35 SINCE MIDMAY CLOSED IN OVERTHECOUNTER TRADING UNCHANGED AT 10375 CORESTATES SAYS IT EXPECTS THE TRANSACTION TO BE SLIGHTLY DILUTIVE TO PERSHARE EARNINGS IN 1994 THE COST ASSOCIATED WITH PROBLEM LOANS IS HIGHER THAN I WOULD HAVE THOUGHT SAID DENNIS SHEA REGIONAL BANKING ANALYST AT MORGAN STANLEY & CO THAT COULD BE OFFSET PARTLY BY 45 MILLION IN UNREALIZED TAX BENEFITS ON CONSTELLATION'S BOOKS NEW JERSEY AND THE SUBURBAN MARKETS OF NEW YORK HAVE BECOME THE SITE OF INCREASED TAKEOVER ACTIVITY J CHRISTOPHER FLOWERS A PARTNER AT GOLDMAN SACHS & CO CALLS THE RECENT ACTIVITY PART OF A DOUGHNUT STRATEGY OF FOCUSING ON THE AFFLUENT SUBURBS OF NEW YORK RATHER THAN THE CONCENTRATED NEW YORK CITY MARKET THERE IS KEEN INTEREST FROM PENNSYLVANIA AND NEW JERSEY BANKS AS WELL AS NEW YORK BANKS SUCH AS CHEMICAL BANKING CORP WHICH HAS BEEN SNIFFING AROUND AND BANK OF NEW YORK WHICH STEPPED INTO THE NEW JERSEY MARKET IN JANUARY WITH THE PLANNED ACQUISITION OF NATIONAL COMMUNITY BANKS INC EVENTUALLY NEW JERSEY'S LARGER BANKS SUCH AS MIDLANTIC CORP AND UJB FINANCIAL CORP ARE EXPECTED TO BE TARGETS THEY'RE ALL BUTTING HEADS SAID MR SHEA EVERYONE IS SCRAMBLING TO ESTABLISH NOT ONLY BEACHHEADS BUT FULL POSITIONS IN THE STATE CONSTELLATION HAS ASSETS VALUED AT 23 BILLION AND IS THE PARENT COMPANY OF CONSTELLATION BANK WHICH OPERATES 49 BRANCHES IN MIDDLESEX MERCER UNION HUNTERDON MONMOUTH ESSEX AND SOMERSET COUNTIES IN NORTHERN AND CENTRAL NEW JERSEY CORESTATES WILL MERGE CONSTELLATION WITH ITS NEW JERSEY NATIONAL BANK UNIT AND SAYS IT HOPES TO CUT 35 MILLION IN CONSTELLATION'S EXPENSES CORESTATES SAYS IT WILL BE THE FOURTHLARGEST BANK IN NEW JERSEY IN 1991 CONSTELLATION HAD A MARKET CAPITALIZATION OF 16 MILLION AND WAS VIEWED AS A CANDIDATE FOR FAILURE LAST FALL IT SOLD A RIGHTS OFFERING TO EXISTING SHAREHOLDERS AT 375 A SHARE 9308030135 930803 WHO'S NEWS TRIBUNE/SWABFOX COS TRIBUNE/SWABFOX COS TULSA OKLA CHAIRMAN AND CHIEF EXECUTIVE G DOUGLAS FOX 60 YEARS OLD RESIGNED FROM THIS MEDIA CONCERN WITH INTERESTS IN NEWSPAPERS AND MAGAZINES TO PURSUE OTHER OPPORTUNITIES JENKIN L JONES 81 WAS ELECTED CHAIRMAN AND HOWARD G BARNETT JR THE PRESIDENT AND CHIEF OPERATING OFFICER WAS ELECTED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE MARTIN A VAUGHAN 66 CURRENTLY A DIRECTOR WAS ELECTED VICE CHAIRMAN A NEW POSITION IN ADDITION MR FOX RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OF THE FIRM'S 72OWNED SUBSIDIARY T/SF COMMUNICATIONS CORP MR BARNETT 43 CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE SUBSIDIARY WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE OF T/SF 9308030134 930803 INCREASES IN DIVIDENDS BY US CORPORATIONS CONTINUED DURING JULY NEW YORK US CORPORATIONS CONTINUED THEIR PATTERN OF INCREASED DIVIDENDS IN JULY STANDARD & POOR'S CORP SAID THE DEBTRATING AGENCY NOTED 127 COMPANIES RAISED DIVIDENDS LAST MONTH UP FROM 100 IN JULY 1992 AND 82 IN JULY 1991 SO FAR THIS YEAR 911 COMPANIES HAVE RAISED DIVIDENDS COMPARED WITH 779 AT THIS POINT A YEAR AGO ARNOLD KAUFMAN EDITOR OF S&P'S OUTLOOK NEWSLETTER ATTRIBUTED THE UPSWING TO THE POSSIBILITY THAT BUSINESS CONFIDENCE IS HIGHER THAN CONSUMER CONFIDENCE ADDING THAT THE OUTLOOK FOR CORPORATE PROFITS MAY BE IMPROVING MORE THAN WAS EXPECTED THE COMPANY ALSO REPORTED SEVEN DIVIDENDS OMITTED IN JULY DOWN FROM 12 IN JULY 1992 TOTAL 1993 OMISSIONS TO DATE WERE 67 DOWN FROM 90 9308030133 930803 HONG KONG'S RETAIL SALES GREW HONG KONG HONG KONG RETAIL SALES GREW 19 IN MAY FROM THE PREVIOUS YEAR TO 15 BILLION HONG KONG DOLLARS THE GOVERNMENT SAID WHEN THE EFFECTS OF INFLATION ARE REMOVED BY MEASURING SALES IN VOLUME TERMS THE JUMP WAS 13 THE GOVERNMENT'S CENSUS AND STATISTICS BUREAU SAID COMPARED WITH APRIL RETAIL SALES JUMPED 13 IN VALUE AND 11 IN VOLUME IN THE FIVE MONTHS OF 1993 COMPARED WITH THE YEAREARLIER PERIOD SALES ROSE 13 IN VALUE AND 9 IN VOLUME THE GOVERNMENT ATTRIBUTED THE MAY SALES INCREASE PRIMARILY TO INCREASED SPENDING ON CLOTHING FOOTWEAR JEWELRY AND WATCHES AND CONSUMER DURABLE GOODS OTHER THAN MOTOR VEHICLES IT ALSO SAID DEPARTMENT STORE SALES POSTED A HEALTHY EXPANSION FUELS FOODSTUFFS AND MOTOR VEHICLES HAD DECREASES 9308030132 930803 CABOT OIL TO ACQUIRE PROPERTIES HOUSTON CABOT OIL & GAS CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE OIL AND NATURAL GAS PROPERTIES IN WEST VIRGINIA AND PENNSYLVANIA THE ENERGY COMPANY DIDN'T DISCLOSE HOW MUCH IT AGREED TO PAY FOR THE PROPERTIES AND DIDN'T NAME THE SELLER THE PROPERTIES WHICH INCLUDE 300 WELLS CONTAIN RESERVES THAT ARE THE EQUIVALENT OF ABOUT 87 BILLION CUBIC FEET OF NATURAL GAS CABOT OIL & GAS SAID IT EXPECTS TO COMPLETE THE TRANSACTION BY SEPT 1 9308030131 930803 TRADE AGENCY REPORTS ADVANCES IN PROTECTING INTELLECTUAL PROPERTY WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR RELEASED AN UPBEAT REPORT CARD OF ADVANCES MADE BY HUNGARY THAILAND AND TAIWAN IN THE FIELD OF INTELLECTUAL PROPERTY PROTECTION DETAILING THE PROGRESS MADE BY THE COUNTRIES UNDER THE THREAT OF US SANCTIONS IN APRIL MR KANTOR ANNOUNCED REVIEWS OF THE THREE NATIONS AND OTHERS UNDER THE SPECIAL 301 PROVISION OF THE US TRADE ACT OF 1974 WHICH ALLOWS THE US TO TAKE UNILATERAL RETALIATORY STEPS TO PENALIZE COUNTRIES FOR VIOLATING FAIRTRADE PROVISIONS THE REVIEWS FOR THESE COUNTRIES WERE CONDUCTED JULY 31 HUNGARY WAS PLACED ON A PRIORITY WATCH LIST BUT MR KANTOR SAID IT WILL NOW BE REMOVED BECAUSE OF A BILATERAL PACT SIGNED LAST WEEK WITH THE US THAT EXPANDS INTELLECTUAL PROPERTY PROTECTION IN HUNGARY MR KANTOR GAVE TAIWAN KUDOS FOR COMPLETING KEY PARTS OF AN IMMEDIATE ACTION PLAN INVOLVING COPYRIGHTS CABLE TELEVISION AND TRADEMARK PROTECTION AND ENFORCEMENT HE SAID THE US WILL CONTINUE TO MONITOR TAIWAN'S PROGRESS HE EXTENDED THE REVIEW OF THAILAND OVER THE NEXT MONTH CITING ADVANCES IN ANTIPIRACY ENFORCEMENT AND COPYRIGHT PROTECTION 9308030130 930803 RAWSTEEL PRODUCTION BY US MANUFACTURERS FELL 3 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS DECREASED 3 LAST WEEK TO 1826000 TONS FROM A WEEKEARLIER 1873000 TONS THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 5 FROM THE 1745000 TONS PRODUCED IN THE YEAREARLIER WEEK THE INDUSTRY USED 87 OF ITS CAPACITY LAST WEEK COMPARED WITH 89 THE PREVIOUS WEEK AND 81 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9308030129 930803 LETTERS TO THE EDITOR BLACKS AND WHITES JOIN TO AID THE ENVIRONMENT YOUR CALLOUS PAGE ONE ARTICLE JUNE 24 IGNORED THE SUFFERING EXPERIENCED BY CITIZENS OF COLUMBIA MISS AND THE SINCERE EFFORTS OF THE JESUS PEOPLE AGAINST POLLUTION JPAP AND SIERRA CLUB'S GULF COAST REGIONAL CONSERVATION COMMITTEE LEADERS TO BUILD A PARTNERSHIP FOR JUSTICE SIERRA CLUB VOLUNTEER LEADERS TRAVELED THERE FROM THROUGHOUT THE SOUTH TO SHOW SOLIDARITY AND TO SEEK TO BUILD A HISTORIC PARTNERSHIP WITH JPAP AND THE COMMUNITY WHICH HAS LIVED SQUARELY IN THE MIDST OF THIS LEGACY OF TOXIC CONTAMINATION MORE THAN 15 YEARS ALL OF THIS SEEMS TO HAVE BEEN LOST ON YOU JOHN MCCOWN SIERRA CLUB'S EXPERIENCED GRASSROOTS ORGANIZER WAS DEMEANED AS IF HE WERE ONLY A TOUR GUIDE LIKEWISE THE EFFORTS OF JPAP TO HOST THIS HISTORIC GATHERING WERE LOST IN STEREOTYPEFOSTERING DIVISIVE WORDS ABOUT BMWS AND PORK CHOPS THE QUOTES IN THE ARTICLE FAILED TO DESCRIBE THE CENTRAL OUTCOME OF THE MEETING THE BEGINNING OF A MOVEMENT OF AFRICANAMERICAN AND WHITE SOUTHERNERS WORKING SIDE BY SIDE FOR ENVIRONMENTAL JUSTICE FOR TOO LONG RACE AND CLASS HAVE BEEN USED TO DIVIDE US IN THE SOUTH OUR MUTUAL EFFORTS TO AVOID BEING DIVIDED AND CONQUERED BY POWERFUL CORPORATE INTERESTS DESERVES A JUST REPRESENTATION 9308030128 930803 LETTERS TO THE EDITOR MEANSPIRITED REVIEW OF NEW SCHOOLS PROJECT WHO IS EVE M KAHN AND WHY IS SHE SAYING SUCH TERRIBLE THINGS ABOUT US IN HER ARTICLE ON THE NEW YORK SCHOOL CONSTRUCTION AUTHORITY DESIGN FOR LEARNING LEISURE & ARTS JUNE 14 SURELY THE MOST CRANKY HER WORD INACCURATE AND MEANSPIRITED ARTICLE ON ARCHITECTURE IN RECENT MEMORY IT ATTACKS WRONGLY ONE OF THE FEW PUBLIC CONSTRUCTION PROGRAMS IT'S SPENDING 43 BILLION TO BUILD NEW SCHOOLS IN NEW YORK CITY THAT WORKS SOME INACCURACIES THE FACADES SPORTING GARLANDS PILASTERS DORMERS CULMINATING IN FINIALS FOR WHICH MS KAHN CREDITS THE PROTOTYPES OF THE '20S AND '30S WERE ACTUALLY FEATURED IN THE EARLIER PROTOTYPES OF 1890 TO 1915 WHEN NEW YORK FACED AS IT NOW DOES AN INFLUX OF IMMIGRANT FAMILIES OVERWHELMING SCHOOL FACILITIES UNDER THE SUPERINTENDENT OF SCHOOL BUILDINGS CBJ SNYDER THE BOARD OF EDUCATION EMBARKED ON A MASSIVE PROGRAM OF SCHOOL CONSTRUCTION THAT RAISED NEW YORK SCHOOLS TO A LEVEL THAT WAS IMITATED THROUGHOUT THE US THE FOUR FIRMS SELECTED TO DESIGN THE CURRENT PROTOTYPES LEARNED A GREAT DEAL FROM THESE EARLY EXAMPLES THE FLIMSY AESTHETIC MS KAHN DESCRIBES IS JUST WRONG THESE NEW SCHOOLS HAVE BEEN DESIGNED TO LAST FOR MANY YEARS OF HEAVY USE MS KAHN WANTS TO KNOW WHERE THE GRANDEUR WENT IT WENT THE WAY OF MUCH IN MODERN URBAN LIFE INCLUDING THE CIVILITY OF PUBLIC CRITICISM THE VICTIM OF DIMINISHING BUDGETS AND INCREASING CRISES OF POVERTY DRUGS HOMELESSNESS AND CRIME THE DIFFICULTIES OF MAINTAINING SCHOOL BUILDINGS UNDER ANTIQUATED CUSTODIAL AGREEMENTS HAVE BEEN MORE COGENTLY WRITTEN ABOUT PREVIOUSLY THE NEW YORK SCHOOL CONSTRUCTION AUTHORITY HAS MANAGED IN FIVE YEARS TO REALIZE AN AMBITIOUS PROGRAM OF DESIGN SITE ACQUISITION AND CONSTRUCTION MS KAHN DESCRIBES IT AS A WAY TO RIDDLE THE TOWN WITH NEW SCHOOLS THIS DIFFICULT AND NEARMIRACULOUS PROCESS IN A CITY KNOWN TO RAISE FORMIDABLE OBSTACLES TO ANY NEW DEVELOPMENT DESERVES A MORE SERIOUS AND OBJECTIVE REVIEW 9308030127 930803 INTERNATIONAL WESTPAC TO SELL INVESTMENT BANK SYDNEY JARDINE FLEMING AUSTRALIA LTD AGREED TO BUY A 50 INTEREST IN ORD MINNETT GROUP LTD AN AUSTRALIAN INVESTMENT BANKING AND BROKERAGE CONCERN FROM WESTPAC BANKING CORP OF SYDNEY THE AUSTRALIAN COMPANIES WOULDN'T DISCLOSE THE PRICE BUT THEY SAID RECENT AUSTRALIAN MEDIA SPECULATION ON THE PRICEPUTTING IT AT AROUND 36 MILLIONHAS BEEN CLOSE TO THE MARK MANAGERS OF ORD MINNETT AGREED TO BUY THE OTHER 50 FROM WESTPAC JARDINE FLEMING AUSTRALIA IS AN INVESTMENT BANK THAT ULTIMATELY IS OWNED BY JARDINE MATHESON HOLDINGS LTD OF HONG KONG AND ROBERT FLEMING & CO OF LONDON ORD MINNETT WILL CONTINUE TO OPERATE UNDER ITS OWN NAME EXCEPT FOR THE FUTURES DIVISION WHICH WILL BE NAMED ORD JARDINE FLEMING FUTURES LTD 9308030126 930803 TECHNOLOGY BROADBAND TECHNOLOGIES PACT RESEARCH TRIANGLE PARK NC BROADBAND TECHNOLOGIES INC SAID IT SIGNED A PACT WITH A PHILIPS ELECTRONICS NV UNIT AND COMPRESSION LABS INC TO DEVELOP TECHNOLOGY TO TURN TELEVISIONS INTO INTERACTIVE VIDEO SERVICES FOR TELEPHONE COMPANIES THE COMPANIES SAID THEY WILL WORK TO DEVELOP ENCODING AND DECODING TECHNOLOGIES AND NETWORK INTERFACE CAPABILITIES SO THAT CONSUMERS COULD HOOK THEIR TELEVISIONS INTO SERVICES PROVIDED BY TELEPHONE COMPANIES OVER FIBEROPTIC LINES THEY SAID THEY WILL ALSO WORK TOGETHER TO MARKET THE TECHNOLOGY WHICH THEY EXPECT TO DELIVER BY THE 1994 SECOND HALF TERMS OF THE PACT WEREN'T DISCLOSED 9308030125 930803 LETTERS TO THE EDITOR REAL ETHICS NOT A POSE ACCORDING TO YOUR JULY 2 PAGE ONE ARTICLE ON WISCONSIN SEN RUSS FEINGOLD SOME CYNICS SPECULATE THAT THE SENATOR'S CONSCIENTIOUSLY ETHICAL BEHAVIOR IS DISINGENUOUS A FAD ADOPTED BECAUSE OF THE POLITICAL TIMES HAVING KNOWN THE SENATOR SINCE BEFORE HE HELD ANY POLITICAL OFFICE I CAN ATTEST THAT HIS ETHICS ARE A FUNDAMENTAL PART OF HIS CHARACTER NOT SOME POSTURE RECENTLY ADOPTED TO WIN VOTES IF ANYONE'S CREDIBILITY ON THE SUBJECT OF LOBBYIST GIFTS IS OPEN TO QUESTION IT IS THOSE WHO CLAIM THAT SMALL GIFTS SUCH AS 21 LUNCHES DON'T AFFECT ANYTHING IF SO WHY ARE SUCH GIFTS GIVEN AT ALL AND WHY IS THERE SUCH STRONG OPPOSITION TO ATTEMPTS TO BAN THEM IF THEY ARE TRULY IRRELEVANT NO ONE SHOULD CARE 9308030124 930803 MARKETING & MEDIA BROADCAST MUSIC INC SIMPLIFIES LICENSE FEES IN CORPORATE ACCOUNTS NEW YORK BROADCAST MUSIC INC WHICH NEGOTIATES LICENSING FEES FOR SONGWRITERS COMPOSERS AND COPYRIGHT HOLDERS SAID IT IS OFFERING A SIMPLIFIED LICENSE AGREEMENT FOR CORPORATE USERS OF MUSIC WITH FEES BASED ON THE NUMBER OF EMPLOYEES THE NEW AGREEMENT WOULD COVER BMI LICENSES FOR USES SUCH AS MUSIC IN SALES PRESENTATIONS IN CORPORATE FITNESS AND AEROBICS FACILITIES LIVE OR RECORDED BACKGROUND MUSIC MUSIC PLAYED WHILE TELEPHONE CALLERS ARE ON HOLD AND TELEVISION AND RADIO PROGRAMMING RECEIVED BY THE LICENSE HOLDER PREVIOUSLY THESE SERVICES WERE LICENSED SEPARATELY A BMI SPOKESMAN SAID THAT A COMPANY USING A WIDE VARIETY OF THOSE SERVICES WOULD PAY A MINIMUM 500 ANNUAL FEE AND THAT COMPANIES WITH 4000 EMPLOYEES WOULD PAY ABOUT 2000 A YEAR HE SAID SOME FIRMS WOULD FIND THE NEW LICENSE LESS EXPENSIVE WHILE OTHERS WOULD PAY MORE DEPENDING ON EXTENT OF USAGE AND NUMBER OF EMPLOYEES THE NEW LICENSE DOESN'T INCLUDE HOTELS NIGHTCLUBS RADIO AND TV STATIONS MORE THAN 100000 COMPANIES ARE LICENSED WITH BMI 9308030123 930803 TECHNOLOGY & HEALTH IN THE LAB PENN'S MOTH PROFESSOR ALIGHTS ON COCOONS BY ADRIENNE PETTY STAFF REPORTER OF THE WALL STREET JOURNAL UPPER PROVIDENCE PA WILLIAM TELFER'S NEIGHBORS IN THIS SLEEPY TOWN ALONG THE DELAWARE RIVER SAY HE IS A QUIET MAN NEATLY DRESSED COURTEOUS BUT RESERVED WHO HAS NEVER CAUSED ANY TROUBLE BUT THEY HAVE SOMETIMES WONDERED ABOUT HIM FROM JUNE UNTIL AUGUST A STRANGE CRACKLING SOUND LIKE CRUNCHING CORN FLAKES EMANATES FROM TWO LEAFY ACRES THAT SURROUND HIS MODEST HOUSE SHROUDED SHAPES LOOM AMONG THE FOLIAGE HIS FAMILY AND ASSOCIATES TALK OF A BROTHEL OF BONDAGE AND OF SEXING PARTIES IT'S TRUE BUT THE 69YEAROLD UNIVERSITY OF PENNSYLVANIA BIOLOGY PROFESSOR INSISTS IT'S ALL FOR SCIENCE THE CRACKLING IS THE SOUND OF 1200 GREEN CATERPILLARS EACH ABOUT THE SIZE OF A HUMAN THUMB DEVOURING THE LEAVES OF 50 BLACK CHERRY TREES PLANTED 37 YEARS AGO THE SHROUDS ARE NETS WHICH DR TELFER TIGHTLY WRAPS AROUND THE TREES TO PROTECT THE CATERPILLARS FROM BIRDS THESE AND OTHER EXOTICA ALL RELATE TO THE BREEDING AND PROPAGATION OF CECROPIA MOTHS THE OBJECT OF DR TELFER'S RESEARCH FOR THE LAST 45 YEARS AT HARVARD AND PENN BY STUDYING THE CATERPILLARS AS THEY CHANGE INTO BEAUTIFUL MULTICOLORED MOTHS DR TELFER HOPES TO UNLOCK SECRETS OF DIFFERENTIATION ONE OF BIOLOGY'S MOST BASIC PHENOMENA DIFFERENTIATION OCCURS IN ALMOST ALL ANIMALS INCLUDING HUMANS WHEN A MICROSCOPIC CLUSTER OF IDENTICAL EMBRYONIC CELLS SUDDENLY BEGINS CHANGING INTO PARTS OF THE MATURE BODY JUST HOW NATURE DECIDES THAT ONE EMBRYONIC CELL WILL BECOME THE HEART WHILE ANOTHER IDENTICAL CELL WILL BECOME THE BRAIN OR AN ARM OR A LEG HAS BAFFLED AND FASCINATED SCIENTISTS FOR DECADES AS WITH MOST BASIC RESEARCH THE SCIENTISTS ARE UNCERTAIN WHAT PRACTICAL BENEFITS WILL FOLLOW UNDERSTANDING DIFFERENTIATION HOWEVER COULD PROVE USEFUL IN SUCH DISPARATE ENDEAVORS AS PEST CONTROL OR PREVENTION OF HUMAN BIRTH DEFECTS AT THE VERY LEAST BOTH DR TELFER AND THE NATIONAL INSTITUTES OF HEALTH BELIEVE HE IS LEARNING PLENTY ABOUT BUGS NIH SUPPORT OF 18 MILLION OVER THE LAST 20 YEARS SHOWS THEIR DEEPLY HELD CONVICTION THAT YOU'RE GOING TO HAVE TO UNDERSTAND INSECTS BETTER TO CONTROL THEM DR TELFER SAYS CECROPIA MOTHS ARE IDEAL FOR STUDYING DIFFERENTIATION SAY SCIENTISTS THE CHANGE FROM A CATERPILLAR INTO A MOTH IS SO GREAT THAT DURING METAMORPHOSIS ALMOST EVERY ORGAN AND TISSUE IN THE CATERPILLAR IS DESTROYED AND REPLACED WITH NEW MOTH ORGANS INCLUDING WINGS THIS TRANSFORMATION BEGINS WHEN THE CATERPILLAR CURLS UP IN A COCOON THE SOCALLED PUPAL STAGE DR TELFER SELECTS FROM HIS BACKYARD COLLECTION HUNDREDS OF PUPAE IN SUCCESSIVE STAGES OF DIFFERENTIATION AND EXTRACTS CELLS THAT WILL HELP HIM UNDERSTAND HOW THE CELLS ARE BEING TRANSFORMED INTO THE VARIOUS PARTS OF THE MOTH THAT WILL BURST FROM THE COCOON STUDYING CECROPIA MOTHS IS FAR EASIER THAN TRYING TO WATCH DIFFERENTIATION AS IT OCCURS IN THE WOMB OF SAY A LABORATORY MOUSE BUT BEFORE HE CAN STUDY THE MOTHS HE MUST BREED THEM THE PROCESS STARTS WITH MOTH BONDAGE ON DR TELFER'S PORCH KNOWN AS THE MOTH BROTHEL THERE HE AND HIS ASSISTANTS TEDIOUSLY BIND FEMALE MOTHS WITH STRING ONTO BROWN PAPER AND LEAVE THEM FOR THE NIGHT SEDUCTIVELY ARRAYED ON THE PORCH WHITHER SWARMS OF MALES ARE LURED BY THE FEMALE'S PHEROMONE A CHEMICAL THAT DRIVES THE MALES MAD WITH PASSION AFTER A NIGHT OF LOVE EACH FEMALE LAYS HER EGGS ON THE BROWN PAPER THE FOLLOWING SPRING DR TELFER ANCHORS THE PAPER SWATCHES TO THE BRANCHES OF HIS CHERRY TREES WHERE THE EGGS HATCH INTO CATERPILLARS WHICH THEN SPIN COCOONS IN BYGONE TIMES WHEN THE CATERPILLARS BECAME LARGE ENOUGH FOR THEIR SEX TO BE IDENTIFIED DR TELFER WOULD INVITE HIS EIGHT ASSISTANTS OVER FOR A BARBECUE AFTER DINNER THEY WOULD RETIRE TO THE ORCHARD TO FREE THE MALE CATERPILLARS FROM THE NETS IN ORDER TO CONSERVE THE LEAVES FOR THE FEMALES ALAS THESE SEXING PARTIES HAVE CEASED DR TELFER IS AFRAID THAT HANDLING THE CATERPILLARS DIRECTLY WILL SPREAD A DISEASE AFFLICTING THEM MOST OF THE HARVESTED COCOONS GO INTO 10 REFRIGERATORS LINING THE WALLS OF DR TELFER'S LAB AT PENN WHERE THEY CAN BE STORED UP TO 18 MONTHS WHEN HIS RESEARCH ASSISTANTS TAKE THEM OUT AT THEIR CONVENIENCE THEY EXTRACT CELLS FROM THE DEVELOPING OVARY THE PARTICULAR ORGAN DR TELFER'S GROUP HAS SELECTED TO STUDY THE MOTH OVARY IS UNUSUAL IN THAT THE SINGLE EGG CELL IS NOURISHED BY SEVEN SURROUNDING NURSE CELLS UNLIKE THE HUMAN EGG CELL WHICH IS INDEPENDENT CURRENTLY DR TELFER AND HIS COLLEAGUES ARE STUDYING HOW THE EGG DEVELOPS AIDED BY THE NURSE CELLS SPECIFICALLY THEY ARE TRYING TO FIND OUT HOW THE EGG IS STIMULATED TO FORM A YOLK THAT WILL NOURISH THE EMBRYO WHEN THE EGG IS FERTILIZED TO DO THIS RICHARD WOODRUFF ONE OF DR TELFER'S RESEARCH COLLABORATORS INSERTS MICROSCOPIC ELECTRODES INTO THE EGG CELL AND THE SURROUNDING NURSE CELLS TO PICK UP THE ELECTRICAL CURRENTS GENERATED AS VARIOUS SUBSTANCES ARE ACTIVATED INSIDE THE CELLS THEY ARE TRACKING THE REGULATORS THAT CONTROL A PROTEIN CALLED VITELLOGENIN WHICH THE EGG CELL DRAWS IN FROM THE BLOOD STREAM THIS PROTEIN WHICH ALSO FUNCTIONS IN CHICKEN EGGS AND FROG EGGS GOES INTO THE MAKING OF THE YOLK THE RESEARCHERS ARE MEASURING ACTIVITY IN THE NURSE CELLS AND EGG CELL OF TWO REGULATOR CHEMICALS CALCIUM AND CYCLIC ADENOSINE MONOPHOSPHATE CYCLIC AMP LEVELS IN A CELL JUMP WHENEVER THE CELL GETS A SIGNAL FROM SOME OUTSIDE HORMONE BOTH THE CYCLIC AMP AND THE CALCIUM THEN HELP REGULATE THE FLOW AND ACTIVITY OF OTHER VITAL SUBSTANCES IN THE CYTOPLASM AS THE NURSE CELLS CARRY OUT THEIR ASSIGNED JOB OF HELPING THE EGG DEVELOP ONCE DR WOODRUFF DETERMINES HOW THE NURSE CELL CONTROLS ITS CALCIUM CONCENTRATION HE CAN IN TURN BEGIN TO VARY IT EXPERIMENTALLY AND THEREBY GAIN AN INSIGHT INTO HOW NATURE CREATES AN EGG THESE AND OTHER LAB EXPERIMENTS ARE MAINLY CONDUCTED BY DR TELFER'S ASSISTANTS AND COLLABORATORS HE CONCENTRATES ON WRITING PAPERS AND PREPARING GRANT APPLICATIONS MEANWHILE ON A RECENT RAINY AFTERNOON AT HIS ORCHARD DR TELFER PEELED COCOONS FROM THE NETS STUFFED THEM IN THE POCKET OF HIS RAIN SLICKER AND DISCOURSED ON THE MOTHS' MATING HABITS ALTHOUGH THEY MATE FOR EIGHT HOURS THE MALE ONLY TRANSFERS SPERM DURING THE FIRST HOUR OR SO HE SAYS THE AFTERPLAY SEEMS DESIGNED FOR THE SAFETY OF THE FEMALE IF A BIRD APPROACHES THEM AS THEY MATE DR TELFER HAS NOTICED THE MALE FLIES AWAY AND SACRIFICES HIMSELF TO SAVE THE MOTHER 9308030122 930803 SHAMROCK UNIT ACQUIRES MALRITE BURBANK CALIF SHAMROCK HOLDINGS INC SAID ITS BROADCASTING UNIT COMPLETED ITS ACQUISITION OF MALRITE COMMUNICATIONS GROUP INC CLEVELAND THE COMBINATION MAKES SHAMROCK BROADCASTING INC ONE OF THE LARGEST RADIO BROADCASTING COMPANIES IN THE US WITH 21 RADIO STATIONS IN 12 MAJOR MARKETS SHAMROCK BROADCASTING CONTINUES TO BE OWNED BY SHAMROCK HOLDINGS A PRIVATELY HELD COMPANY NOW OWNED PRINCIPALLY BY THE ROY E DISNEY FAMILY AND TREFOIL CAPITAL INVESTORS LP BASED IN BURBANK CALIF PRIOR TO THE TRANSACTION MALRITE WAS PRINCIPALLY OWNED BY MILTON MALTZ ITS CHAIRMAN AS A RESULT OF THE TRANSACTION MR MALTZ HOLDS A MINORITY EQUITY POSITION IN AND WILL SERVE AS A DIRECTOR OF SHAMROCK HOLDINGS 9308030121 930803 ECONOMY MANUFACTURING CONTRACTED AGAIN IN JULY SLOW RECOVERY IS INDICATED CONSTRUCTION SPENDING INCREASED 09 IN JUNE BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MANUFACTURING SECTOR CONTRACTED FOR THE SECOND CONSECUTIVE MONTH IN JULY ACCORDING TO A SURVEY OF PURCHASING EXECUTIVES SUGGESTING SLOW ECONOMIC RECOVERY STILL LIES AHEAD THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX WHICH GIVES THE FIRST PEEK AT HOW FACTORIES DID LAST MONTH ROSE TO 495 THAT IS BETTER THAN THE 483 REGISTERED IN JUNE BUT IT STILL SUGGESTS THE MANUFACTURING SECTOR IS IN A PRECARIOUS SPOT IN THE INDEX READINGS BELOW 50 GENERALLY MEAN THE MANUFACTURING ECONOMY IS DECLINING AND THOSE ABOVE 50 MEAN IT IS GROWING THE INDEX HAS REGISTERED BELOW 50 IN THREE OF THE PAST FOUR MONTHS RAISING A YELLOW FLAG ABOUT THE HEALTH OF THE NATION'S FACTORIES BUT ANALYSTS SAY THE REPORT DOESN'T CHANGE THE VIEW THAT THE ECONOMY IS IMPROVING SLOWLY THE DECLINE IS NOT CAUSE FOR GREAT CONCERN THE OVERALL ECONOMY IS GROWING AT A MODERATE PACE SAID SURVEY CHIEF ROBERT J BRETZ WHO IS ALSO DIRECTOR OF CORPORATE PURCHASING FOR PITNEY BOWES INC HE ADDED THAT MANUFACTURERS ARE STILL VERY AMBIVALENT ABOUT THE PACE OF THE RECOVERY THE NEW ORDERS INDEX JUMPED SHARPLY IN JULY BUT ANALYSTS SAID EVEN STRONGER GROWTH WOULD BE NEEDED FOR CONSISTENT IMPROVEMENT IN MANUFACTURING MARILYN SCHAJA MONEY MARKET ECONOMIST WITH DONALDSON LUFKIN & JENRETTE SAID NEW ORDERS WOULD HAVE BEEN EVEN STRONGER IN JULY HAD IT NOT BEEN FOR FLOODING IN THE MIDWEST ANALYSTS FOUND THE INFLATION NEWS IN THE REPORT ENCOURAGING PRICES INCREASED FOR THE SIXTH CONSECUTIVE MONTH BUT AT A LESSER RATE THAN IN JUNE THE BULK OF COMMODITY PRICE INCREASES WERE IN STEEL THAT HAS BEEN ATTRIBUTED TO THE PENALTIES THE US GOVERNMENT PUT ON FOREIGN STEEL COMPETITORS FOR SELLING STEEL BELOW COST BUT MR BRETZ SAID THOSE PRICE INCREASES PROBABLY WON'T STICK BECAUSE THOSE PENALTIES HAVE SINCE BEEN REDUCED THIS SHOULD RESULT IN MORE SHIPMENTS OF PRODUCTS FROM FOREIGN SHORES AND LOWER PRICES HE SAID LAURA TYSON HEAD OF THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS SAID THAT AFTER A ROCKY START AT THE BEGINNING OF THE YEAR THE MOST RECENT INFLATION NEWS REDUCES THE CHANCE THAT INTEREST RATES WILL INCREASE HOWEVER THE JOB PICTURE IN THE INDEX WASN'T SO BRIGHT IN JULY THOUGH IT WAS BETTER THAN IN JUNE EMPLOYMENT IS PRETTY MUCH DEAD IN THE WATER MR BRETZ SAID SOME ANALYSTS SAID FRIDAY'S EMPLOYMENT REPORT IS LIKELY TO SHOW ANOTHER DECLINE IN FACTORY JOBS SEPARATELY THE COMMERCE DEPARTMENT REPORTED CONSTRUCTION SPENDING INCREASED 09 IN JUNE SPENDING FOR PUBLIC BUILDINGS SUCH AS HOSPITALS AND SCHOOLS INCREASED BUT SPENDING FOR NEW SINGLEFAMILY HOMES AND COMMERCIAL BUILDINGS FELL IN A SEPARATE REPORT A SURGE IN NONRESIDENTIAL AND NONBUILDING CONSTRUCTION BOOSTED OVERALL NEW CONSTRUCTION 13 IN JUNE ACCORDING TO FW DODGE THE MCGRAWHILL INC FORECASTING UNIT THE FW DODGE REPORT DIFFERS FROM THE COMMERCE DEPARTMENT'S REPORT BECAUSE IT MEASURES THE VALUE OF CONSTRUCTION CONTRACTS AWARDED NOT THE VALUE OF CONSTRUCTION PUT IN PLACE JUNE'S INCREASE WAS SIGNIFICANTLY HELPED BY THE START OF FOUR NEW PROJECTS INCLUDING TWO CONVENTION CENTERS AND TWO POWER PLANTS ALL FIGURES WERE ADJUSTED FOR INFLATION AND NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9308030120 930803 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A US GUBERNATORIAL GROUP OPENED A SMALL TRADE OFFICE IN MOSCOW TO HELP AMERICAN BUSINESSES THAT ARE LOOKING FOR INVESTMENT OPPORTUNITIES IN RUSSIA THE NATIONAL GOVERNORS' ASSOCIATION WITH HELP FROM THE US EMBASSY'S COMMERCIAL UNIT LAUNCHED THE OFFICE WITH A DIRECTOR AND TWO ASSISTANTS SUPPORTED BY A GRANT OF 300000 MOSTLY FROM THE US AGENCY FOR INTERNATIONAL DEVELOPMENT SOME FOREIGN COMPANIES VENTURING INTO RUSSIA HAVE COMPLAINED ABOUT POLITICAL UNCERTAINTY A CONFUSED BUREAUCRACY AND CONSTANTLY CHANGING LAWS THE TRADE OFFICE IS THE GOVERNORS GROUP'S FIRST FORAY ABROAD THOUGH SOME US STATES HAVE MISSIONS IN RUSSIA GEORGIA ABANDONED THE RUSSIAN RUBLE AND DECLARED A TEMPORARY COUPON THE CAUCASUS REPUBLIC'S ONLY LEGAL TENDER BUT MERCHANTS CONTINUED TO ACCEPT THE RUBLE AND SOME GOODS WERE AVAILABLE ONLY FOR RUBLES OR HARD CURRENCY GEORGIA DECIDED LAST WEEK ON DISCONTINUING USE OF THE RUBLE AFTER RUSSIA INVALIDATED PRE1993 RUBLE NOTES MOSCOW LATER RELAXED THE TERMS OF ITS DECREE MAKING IT EASIER TO EXCHANGE OLD RUBLES FOR NEW ONES IN APRIL RUBLESHORT GEORGIA BEGAN INJECTING THE COUPONS INTO THE MONEY SUPPLY TO KEEP UP WITH THE GOVERNMENT PAYROLL BACKED ONLY BY THE GEORGIAN ECONOMY ONE OF THE WEAKEST AMONG THE FORMER SOVIET REPUBLICS THE COUPON WAS UNPOPULAR IT IS WORTHLESS OUTSIDE GEORGIA ITS VALUE HAS PLUMMETED TO SEVEN COUPONS TO THE RUSSIAN RUBLE THOUSANDS OF MINERS IN ROMANIA BEGAN A STRIKE OVER PAY PREMIER NICOLAE VACAROIU REJECTED AN APPEAL BY THE 250000MEMBER UNION FOR A MEETING SAYING THE GOVERNMENT COULDN'T RAISE ITS OFFER OF 200 A MONTH MADE LAST WEEK WHEN THE UNION FIRST SOUGHT 630 THEN CUT THAT TO 250 MINERS ARE PAID ABOUT 150 A MONTH FAR EXCEEDING THE ROMANIAN AVERAGE OF 80 THE GOVERNMENT WARNED OF DANGER TO THE ECONOMY IF MINERS' DEMANDS WERE MET AND OTHER WORKERS ALSO SOUGHT HIGH PAY THE POWERFUL NATIONAL COUNCIL OF FREE UNIONS WITH MORE THAN 35 MILLION MEMBERS SAID THE MINERS HAD GONE TOO FAR JAPANESE 55 AND OLDER ACCOUNTED FOR 13 OF THE WORK FORCE LAST YEAR UP FROM 98 IN 1988 A LABOR MINISTRY SURVEY OF 12000 BUSINESSES AND 30000 EMPLOYEES AGED 5569 FOUND THAT COMPANIES PROMOTED HIRING OLDER WORKERS AND THAT SMALLER BUSINESSES TENDED TO EMPLOY MORE OF THEM SUCH WORKERS ACCOUNTED FOR BETWEEN 16 AND 21 OF THE WORK FORCE IN FIRMS WITH FIVE TO 99 EMPLOYEES BUT ONLY 89 AT COMPANIES WITH 1000 TO 4999 WORKERS AND 68 AT ENTERPRISES WITH 5000 OR MORE COMPANIES PLANNING TO CURB EMPLOYMENT OF OLDER WORKERS FELL TO 20 FROM 34 PHILIPPINE PRESIDENT FIDEL RAMOS LAUNCHED A FAMILY PLANNING PROGRAM DENOUNCED BY THE ROMAN CATHOLIC CHURCH THE COUNTRY HAS ONE OF ASIA'S HIGHEST RATES OF POPULATION GROWTH 248 WHICH MR RAMOS HOPES TO CUT TO 2 IN FIVE YEARS THE PROGRAM INCLUDES DISTRIBUTION OF FREE CONDOMS AND BIRTHCONTROL INFORMATION TO IMPOVERISHED FILIPINOS WE CANNOT REDUCE THIS ISSUE OF MORALITY MERELY TO A MATTER OF RELIGIOUS FAITH HE SAID ABOUT 85 OF FILIPINOS ARE NOMINALLY CATHOLIC AND CHURCH LEADERS HAVE URGED CATHOLIC HEALTH WORKERS TO BOYCOTT THE PROGRAM BRITISH HOME PRICES IN JULY ROSE 07 FROM JUNE FOR THEIR FIFTH MONTHLY INCREASE IN A ROW AS THE SECTOR'S GRADUAL RECOVERY CONTINUED THE NATIONWIDE BUILDING SOCIETY A BIG MORTGAGE LENDER SAID THE INCREASE PUT ITS MONTHLY INDEX AT 19513 UP FROM 19371 IN JUNE BUT THE JULY PRICES WERE STILL DOWN 24 FROM A YEAR EARLIER THE SURVEY FOUND THAT HOME PRICES CLIMBED 43 IN THIS YEAR'S FIRST SEVEN MONTHS AMID BRITAIN'S RECOVERY FROM RECESSION ECONOMIC REFORMS IN CHINA HAVE TRIGGERED A SHARP RISE IN MENTAL ILLNESS THE OFFICIAL WEEKEND NEWSPAPER QUOTED A PSYCHIATRIST AS SAYING BLAMING UNFAMILIAR PRESSURES OF UNCERTAINTY AND RISK THE BIGGEST MENTAL HOSPITAL IN ECONOMICALLY SIZZLING GUANGDONG PROVINCE IS FULL AND HUNDREDS OF STRESSEDOUT PATIENTS ARRIVE DAILY THE NANJING PAPER SAID IN THE REPORT A PSYCHIATRIST AT FANGCUN HOSPITAL IN THE PROVINCIAL CAPITAL OF GUANGZHOU SAID AS THE COMMODITY ECONOMY DEVELOPS PEOPLE'S SOCIAL STATE OF MIND IS CHANGING SUBTLY MENTAL ANXIETY IS GROWING BY THE DAY AND THE CONSCIOUSNESS OF THREATS TO ONE'S LIVELIHOOD IS INCREASING SO THE MENTAL PRESSURES PEOPLE FEEL ARE GROWING HEAVIER THESE ARE IMPORTANT EXTERNAL FACTORS CAUSING MENTAL ILLNESS ABOUT 70 TEMPORARY BEDS WERE SET UP IN HALLWAYS OF THE 1600BED HOSPITAL TO COPE WITH THE OVERFLOW OFFICIALS SAID FANGCUN'S WALKIN CLINIC HAS BEEN TREATING BETWEEN 700 AND 800 PATIENTS A DAY AND SOMETIMES MORE THAN 1000 MOST ARE IN THEIR 20S AND 30S A GROUP MORE ENTHUSIASTIC ABOUT MARKET REFORMS THAN OLDER WORKERS THE EUROPEAN INVESTMENT BANK THE EUROPEAN COMMUNITY'S LONGTERM LENDING ARM CLEARED A LOAN TO GREECE OF 152 MILLION TO HELP DEVELOP ROADS AND POWER INCLUDING COMPLETION OF THE CORINTHTRIPOLI MOTORWAY CHINA REPLACED GERMANY AS JAPAN'S SECONDBIGGEST TRADING PARTNER AFTER THE US IN THE FIRST HALF THE JAPAN EXTERNAL TRADE ORGANIZATION SAID BEIJING'S OPENMARKET POLICIES VAULTED CHINA FROM FIFTH PLACE IN LAST YEAR'S RANKING 9308030119 930803 FISERV TO BUY TWO MELLON UNITS MILWAUKEE FISERV INC SAID IT AGREED DEFINITIVELY TO BUY TWO OF MELLON BANK CORP'S OUTSOURCING UNITS FINANCIAL INSTITUTION OUTSOURCING AND DATALINK SYSTEMS INC TERMS WEREN'T DISCLOSED FISERV WHICH PROVIDES DATA PROCESSING OUTSOURCING SERVICES FOR FINANCIAL INSTITUTIONS SAID THESE TECHNOLOGYBASED BUSINESSES GENERATE ANNUAL REVENUE OF 70 MILLION AND PROVIDE INFORMATION PROCESSING AND MORTGAGE BANKING SERVICES FOR 200 BANKS THRIFTS MORTGAGE COMPANIES AND OTHER FINANCIAL INTERMEDIARIES THROUGHOUT THE US AND CANADA THE TRANSACTION IS EXPECTED TO BE COMPLETED BY THE 1993 FOURTH QUARTER 9308030118 930803 TECHNOLOGY & HEALTH MOTOROLA IDENTIFIES THE INITIAL MEMBERS OF PHONE CONSORTIUM SCHAUMBURG ILL MOTOROLA INC FOR THE FIRST TIME IDENTIFIED THE INITIAL MEMBERS OF ITS IRIDIUM INC CONSORTIUM WHICH PLANS TO LAUNCH A 34 BILLION GLOBAL SATELLITEPHONE NETWORK BY 1998 MOTOROLA COMPLETED AN INITIAL 800 MILLION EQUITY PLACEMENT LAST WEEK FOR THE PROJECT THE INVESTORS INCLUDE BEIJING'S CHINA GREAT WALL INDUSTRY CORP AND THE RUSSIAN FEDERATION'S KHRUNICHEV ENTERPRISE BOTH OF WHICH ARE EXPECTED TO PROVIDE LAUNCH MISSILES FOR IRIDIUM'S PROPOSED 66SATELLITE NETWORK THE TWO COMPANIES WILL EACH OWN 5 OF IRIDIUM BASED ON THE FIRSTROUND FINANCING TWO OTHER IRIDIUM CONTRACTORS LOCKHEED CORP AND RAYTHEON CO WILL ALSO TAKE STAKES BUT THEIR COMBINED INTERESTS AMOUNT TO LESS THAN 5 THE LARGEST EQUITY INTERESTS WILL BE RETAINED BY MOTOROLA WITH ABOUT A 34 STAKE COSTING 270 MILLION A JAPANESE GROUP LED BY DAINI DENDEN AND KYOCERA CORP 15 AND TWO SAUDI ARABIAN GROUPS LED BY THE MAWARID GROUP 15 SEVERAL TELECOMMUNICATIONS COMPANIES JOINED UP FOR 5 INTERESTS BCE MOBILE A SUBSIDIARY OF BCE INC OF CANADA SPRINT CORP IN THE US STETSOCIETA FINANZIARIA TELEFONICA PER AZIONI THE ITALIAN TELECOMMUNICATIONS HOLDING COMPANY AND UNITED COMMUNICATIONS INDUSTRY CO A THAI CELLULAR AND PAGING OPERATOR MUIDIRI INVESTMENTS BVI LTD A GROUP OF PRIVATE INVESTORS IN VENEZUELA ROUNDS OUT THE CONSORTIUM IRIDIUM PLANS ANOTHER 800 MILLION EQUITY PLACEMENT IN ABOUT TWO YEARS AND IS STILL SEEKING SEVERAL MORE INVESTORS ADDITIONAL INVESTORS WOULD BUY INTERESTS FROM MOTOROLA UNTIL ITS STAKE IS REDUCED TO 15 INVESTORS BEYOND THAT POINT WOULD DILUTE THE INTERESTS OF FIRSTROUND MEMBERS AND REDUCE THE SIZE OF THE SECONDROUND EQUITY FINANCING OWNERS OF AT LEAST 5 STAKES ARE GIVEN GATEWAY RIGHTS WHICH IN EFFECT ALLOW THEM TO ACT AS WHOLESALERS OF IRIDIUM'S SERVICE 9308030117 930803 LETTERS TO THE EDITOR THEY KNOW THEY'VE BEEN RAPED IN RESPONSE TO NEIL GILBERT'S JUNE 29 EDITORIAL PAGE ARTICLE THE WRONG RESPONSE TO RAPE FOR MORE THAN TWO YEARS MR GILBERT HAS BEEN WRITING ABOUT RAPE IN THE POPULAR PRESS BECAUSE HE IS AN ACADEMIC ONE WOULD EXPECT HIM TO BE INTERESTED IN A LEGITIMATE DIALOGUE THAT SEEKS TO IMPROVE UNDERSTANDING INSTEAD MY EXPERIENCE OF RESPONDING TO HIM REVEALS THAT HE CHANTS THE SAME LITANY OF STATISTICS AND IGNORES EFFORTS TO SHOW HOW HE HAS MISUNDERSTOOD OR MISUSED THEM ONE OF HIS CRITICAL ISSUES IN THIS ARTICLE IS WHAT HE VIEWS AS ATTEMPTS BY THE SENATE JUDICIARY COMMITTEE TO LIE WITH STATISTICS YET MR GILBERT HIMSELF COMMITS THE SAME ERROR IN HIS TREATMENT OF RESEARCH I HAVE PUBLISHED HE STATES THAT 73 OF THE COLLEGE WOMEN WHOM PROF KOSS CLASSIFIED AS VICTIMS DID NOT THINK THEY HAD BEEN RAPED FOR QUITE SOME TIME HE HAS HAD INFORMATION IN HIS POSSESSION SHOWING THAT ONLY ONE IN 10 VICTIMS SAID SHE FELT UNVICTIMIZED BY THE EXPERIENCE THE REMAINING NINE WHO FELT VICTIMIZED WERE SPLIT BETWEEN THOSE WHO THOUGHT THEIR EXPERIENCE WAS RAPE THE 27 FRACTION MR GILBERT QUOTES THOSE WHO THOUGHT THEIR EXPERIENCE WAS A CRIME BUT MIGHT NOT BE CALLED RAPE AND THOSE WHO THOUGHT THEIR INCIDENT WAS EXTREMELY TRAUMATIC BUT WAS NOT A CRIME HIS STATEMENT FAILS TO GIVE A FAIR REPRESENTATION OF THESE FINDINGS AND HIS CONTINUED USE OF IT SUGGESTS THAT HE DOES NOT WISH TO HAVE HIS OPINIONS CONFUSED BY THE FACTS IN MY RECENT RESEARCH WITH WOMEN RECOVERING FROM RAPE I HAVE EXPANDED BEYOND COLD STATISTICS TO TAKE ORAL TESTIMONIES FROM MORE THAN 250 WOMEN ABOUT THE INCIDENT AND ITS AFTERMATH MR GILBERT WILL FIND IT HARDER TO DISMISS WITH HIS STATISTICAL SLEIGHT OF HAND THE SUFFERING OF REAL WOMEN EXPRESSED IN THEIR OWN WORDS HE GOES ON TO COMMENT THAT MOST OF THE COLLEGE WOMEN IN PROF KOSS'S STUDY PROBABLY COUNTED THEMSELVES AS FEMINISTS THE 3187 WOMEN WHO PARTICIPATED IN THE STUDY WERE A REPRESENTATIVE SAMPLE OF WOMEN ENROLLED IN HIGHER EDUCATION INCLUDING TECHNICAL AND BEAUTY COLLEGES COMMUNITY COLLEGES AND UNIVERSITIES AMONG THE INSTITUTIONS SAMPLED WERE PRIVATE PAROCHIAL TRADITIONALLY BLACK AND PUBLIC SCHOOLS ACROSS ALL REGIONS OF THE CONTINENTAL US PARTICIPATION RATE IN THE SURVEY WAS 91 THE ASSUMPTION THAT MOST OF THE WOMEN IN THIS DIVERSE CROSS SECTION WOULD BE FEMINISTS IS RIDICULOUS MR GILBERT'S REMARK SERVES NO OTHER PURPOSE THAN TO TRY TO DISCREDIT THE RESEARCH BY INNUENDO MR GILBERT CLAIMS IN HIS PRESS RELEASES TO BE NEARLY SINGLEHANDEDLY RESPONSIBLE FOR ELIMINATING SEXUALABUSE PREVENTION FROM CALIFORNIA SCHOOLS IN THIS ARTICLE HE UNVEILS HIS TRUE AGENDA ON RAPE HE DOESN'T WANT ANY MONEY TO BE ALLOCATED THROUGH THE VIOLENCE AGAINST WOMEN ACT TO ADDRESS THE NEEDS OF RAPE VICTIMS I DON'T UNDERSTAND WHAT MR GILBERT'S ACADEMIC AFFILIATION AS A PROFESSOR OF SOCIAL WELFARE MEANS ALL WE HAVE HEARD FROM HIM IS WHAT HE IS AGAINST WHEN IS HE GOING TO SHARE WITH US HOW HE PROPOSES TO MEET THE LEGITIMATE NEEDS FOR HEALING OF SEXUALLY VICTIMIZED WOMEN AND CHILDREN PROF KOSS IS COCHAIR OF THE AMERICAN PSYCHOLOGICAL ASSOCIATION'S TASK FORCE ON VIOLENCE AGAINST WOMEN A MEMBER OF THE NATIONAL INSTITUTE OF MENTAL HEALTH'S WORKING GROUP ON VIOLENCE AND A CONSULTANT TO THE WORLD BANK ON VIOLENCE AGAINST WOMEN INTERNATIONALLY 9308030116 930803 TRITON ENERGY CORP DALLAS TRITON ENERGY CORP SAID IT RECEIVED A PRELIMINARY COMMITMENT OF 33 MILLION FROM THE EXPORT/IMPORT BANK OF THE US TO GUARANTEE LOANS THAT TRITON WILL BE TAKING OUT FOR THE INITIAL DEVELOPMENT OF THE CUSIANA AND CUPIAGUA FIELDS IN COLOMBIA THE GUARANTEE COVERS TRITON'S EXPENDITURES FOR EQUIPMENT PIPELINES AND OTHER FACILITIES THAT THE OIL COMPANY WILL BE USING FOR THE PROJECT THE FIRST PHASE OF DEVELOPMENT INCLUDES WELLS FACILITIES AND EXISTINGPIPELINE UPGRADES TO ACHIEVE INITIAL PRODUCTION OF AS MUCH AS 150000 BARRELS OF OIL PER DAY BY LATE 1995 FROM THE CUSIANA FIELD TRITON HOLDS A 12 INTEREST IN THE CUSIANA AND CUPIAGUA FIELDS 9308030115 930803 TECHNOLOGY LILLY UNIT'S HEART DEFIBRILLATOR ST PAUL MINN ELI LILLY & CO'S CARDIAC PACEMAKERS INC UNIT SAID ITS IMPLANTABLE HEART DEFIBRILLATOR WAS RECOMMENDED FOR APPROVAL BY A PANEL OF THE FOOD AND DRUG ADMINISTRATION THE MULTITHERAPY DEVICE GENERATES ELECTRIC SHOCKS THAT CONTROL LIFETHREATENING RAPID HEART BEATS AS WELL AS PULSES THAT TREAT EXCESSIVELY SLOW HEART BEATS IN APRIL AN FDA PANEL APPROVED AN ELECTRIC WIRE OR LEAD CONNECTED TO A DEFIBRILLATOR THAT IS THREADED THROUGH A PATIENT'S VEIN INTO THE HEART CPI SAID IT RECEIVED THE FDA'S APPROVAL LETTER FOR THE LEAD SYSTEM CALLED ENDOTAK ON JULY 23 9308030114 930803 WHO'S NEWS NEW IMAGE INDUSTRIES INC NEW IMAGE INDUSTRIES INC CANOGA PARK CALIF PHILIP J GRISWA 49 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AT THIS DESIGNER OF COMPUTER IMAGING PRODUCTS MR GRISWA WAS FORMERLY VICE PRESIDENTMARKETING FOR PHILIPS MEDICAL SYSTEMS OF SHELTON CONN HE SUCCEEDS ROGER LEDDINGTON 48 WHO ASSUMES THE TITLE OF PRESIDENT FORMERLY HELD BY ROBERT GUREVITCH 52 MR GUREVITCH WILL CONTINUE AS NEW IMAGE'S CHAIRMAN AND CHIEF EXECUTIVE MR GUREVITCH SAID IN A NEWS RELEASE THAT MR GRISWA WILL CONCENTRATE ON DAILY SALES AND MARKETING ALLOWING MR LEDDINGTON TO FOCUS ON LONGTERM PLANNING 9308030112 930803 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS AUG 316 DURING THE 1980S AFTER THE DECADELONG CULTURAL REVOLUTION HAD DESTROYED MUCH OF CHINA'S RICH CULTURAL HERITAGE YOUNG ARTISTS WERE INSPIRED BY A NEW TOLERANCE AND FREEDOM FROM CENSORSHIP TESTING THE LIMITS OF THEIR FREEDOM THEY REJECTED TRADITIONAL STYLES AND EXPLORED CONTEMPORARY MODELS FROM THE WEST MANY AVANTGARDE ARTISTS WERE FORCED UNDERGROUND OR ABROAD WITH THE NEXT CAMPAIGN AGAINST INTELLECTUALS WHICH FOLLOWED THE TIANANMEN SQUARE INCIDENT IN 1989 THIS EXHIBIT FEATURES WORK BY FOUR EXILED ARTISTS OF THE AVANTGARDE MOVEMENT GU WENDA WHO NOW LIVES AND WORKS IN NEW YORK CITY RECENTLY EXHIBITED AT THE MUSEUM OF MODERN ART IN OXFORD ENGLAND HUANG YONG PING BASED IN PARIS HAS EXHIBITED EXTENSIVELY IN EUROPE WU SHAN ZHUAN WHO LIVES AND WORKS IN HAMBURG GERMANY AND XU BING WHO LIVES IN VERMILLION SD ARE REPRESENTED AT THE 1993 VENICE BIENNALE WEXNER CENTER FOR THE ARTS OHIO STATE UNIVERSITY N HIGH STREET AT 15TH AVENUE THROUGH OCT 10 614 2920330 THIS EXHIBITION TRACES THE CAREER OF ONE OF THE MOST INFLUENTIAL CALIFORNIA ARTISTS OF THE PAST SEVERAL DECADES ON VIEW ARE PAINTINGS AND SCULPTURES CREATED BETWEEN THE LATE '50S AND EARLY '70S INCLUDING EXAMPLES OF HIS LINE AND DOT PAINTINGS AND HIS DISK PAINTINGS WHICH ARE ALUMINUM OR ACRYLIC DISKS PAINTED AND LIT TO APPEAR TO FLOAT WITHOUT SUPPORT IN ADDITION PHOTOGRAPHS AND DRAWINGS OF HIS SITEDETERMINED WORK FROM THE '70S AND '80S WILL BE ON DISPLAY MR IRWIN USES GALLERY WALLS EXISTING LIGHT AND STRUCTURES OR NATURAL PLANTINGS AND TOPOGRAPHY TO PRODUCE ART WITHOUT A PARTICULAR OBJECT THAT CAN BE LABELED ART THE EXHIBITION WILL TRAVEL TO COLOGNE PARIS MADRID AND NEW YORK THROUGH 1995 AT EACH SITE MR IRWIN WILL DESIGN A SITESPECIFIC ENVIRONMENTAL WORK MR IRWIN HAS USED TREES AND BOUGAINVILLEAS WITH HEAVY IRON BARS FOR THE SITE AT MOCA'S ENTRANCE MUSEUM OF CONTEMPORARY ART 250 SOUTH GRAND AVE THROUGH AUG 15 THIS THREEWEEK FESTIVAL OF MUSIC THEATER DANCE AND SPECIAL CHILDREN'S SHOWS WILL SPILL ONTO THE PLAZAS OUTSIDE THE CULTURAL COMPLEX HIGHLIGHTS INCLUDE THE BILL T JONES/ARNIE ZANE DANCE COMPANY AUG 34 THE NEW YORK DEBUT OF MONTREAL DANSE AUG 1011 BIG MINGUS A TRIBUTE TO MASTER JAZZMAN CHARLES MINGUS AUG 13 AND THE NINTH ANNUAL ROOTS OF AMERICAN MUSIC FESTIVAL AUG 2324 IN ADDITION TWO MINIFESTIVALS WILL BE HELD PLAYDAYS A FAMILYENTERTAINMENT WEEKEND INCLUDING A SINGALONG LED BY PETE SEEGER AUG 1415 AND PHILADELPHIA STORY THE FIRST IN A SERIES THAT PAYS TRIBUTE TO GREAT AMERICAN CITIES AUG 1721 ALL EVENTS FREE OF CHARGE LINCOLN CENTER OUTDOOR PLAZAS BROADWAY BETWEEN 62ND AND 65TH STREETS AUG324 212 8755400 A RECREATION OF A 16THCENTURY ENGLISH COUNTRY FAIR WITH DRAMA MUSIC DANCE PUPPET SHOWS STORYTELLING JUGGLERS AND MORE CONTINUOUS THEATER PERFORMANCES INCLUDE THE FULLLENGTH EQUITY STAGE PRODUCTION OF A MIDSUMMER NIGHT'S DREAM LOCATED ON 65 ACRES OF COUNTRYSIDE THE FESTIVAL ALSO BOASTS A BUSTLING TUDORSTYLE MARKETPLACE FILLED WITH CRAFTS GAMES FOOD AND DRINK EACH DAY OF THE FESTIVAL REPRESENTS FOOD AND COOKING FROM ANOTHER ERA DEMONSTRATIONS AND TASTINGS WILL TAKE PLACE IN THE VICTORIAN HOMES AND SHIP GALLEYS OF THIS RECREATION OF A 17THCENTURY WHALING PORT VISITORS CAN HELP CHURN BUTTER OR SAMPLE TRADITIONAL DISHES SERVED BY COSTUMED STAFF THE SEVENTH ANNUAL CLASSICALJAZZ SERIES KICKS OFF THE 19931994 JAZZ SEASON SERIES HIGHLIGHTS INCLUDE MONK'S POINT A BIGBAND CONCERT COMMEMORATING THE 30TH ANNIVERSARY OF THELONIOUS MONK'S FAMOUS LINCOLN CENTER BIGBAND PERFORMANCES AUG 3 WORLD PREMIERES BY PIANISTS GERI ALLEN AND MARCUS ROBERTS AUG 7 AND THE ALLSTAR LINCOLN CENTER JAZZ ORCHESTRA IN IN THE SPIRIT OF THE PLACE AN EVENING OF DUKE ELLINGTON MUSIC FEATURING WYNTON MARSALIS AUG 8 JAZZ LEGENDS WILL ALSO BE HONORED IN TALKS AND FILMS 9308030111 930803 BUSINESS WORLD FEELING LIKE THE FIFTIES BY TIM W FERGUSON SLOW GROWTH LOW INTEREST RATES BARE HINTS OF INFLATION AND A POLITICAL PREOCCUPATION WITH RAISING TAXES TO TRY TO KEEP PACE WITH GOVERNMENT SPENDING HAS THE US BEEN HERE BEFORE ARGUABLY IT HAS IN THE 1950S THE ELVIS DECADE IS A TEMPTING COMPARISON FOR THE CLINTON HOUR THE PRESIDENT GOES TO THE MIKE THIS WEEK FOR THE FISCAL MEDLEY THE CONGRESSIONAL LEADERSHIP HAS SCORED FOR HIM LIKE A LOT OF THE EISENHOWERERA BUDGET BILLS IT IS A SONG OF STASIS THAT WON'T SINGLEHANDEDLY CLOSE DOWN THE ECONOMIC SHOW OVER THE LONG RUN HIGHER TAX RATES ON INCOME FROM SUCCESS AND SAVING WILL RETARD ECONOMIC OPPORTUNITY NOT A LOT OF THOSE TAXES ACTUALLY WILL BE PAID BUT THEY WILL BE AVOIDED AND IN THE PROCESS CAPITAL WON'T BE OPTIMALLY USED ANIMAL SPIRITS WILL STILL GALVANIZE THE VENTURESOME LEVIES BELOW 50 WON'T KEEP THEM DOWN BUT FEWER WILL GO FLAT OUT IN THE 1950S MODE WEALTH IS BUILT MORE SLOWLY MORE EQUALLY LESS OPENLY THE GOOD NEWS IS THAT IF OTHERWISE NOT TOO HINDERED THE ECONOMY COULD SWAMP THAT TAX LEGISLATION LIKE THE MIGHTY RIVERS OF THE MIDWEST IT WILL GO MORE OR LESS WHERE IT WANTS AT THE MOMENT IT SEEMS TO BE REINFORCING THE MORE DESIRABLE CONDITIONS OF '50S RELENTLESSLY BEATING DOWN THE COSTOFLIVING IN OUR JOYLESS RECOVERY THE CONSUMER WORLDWIDE AND ESPECIALLY IN THE US HAS NEVER HAD IT SO GOOD NEARLY EVERYTHING IS FALLING IN PRICE AND RISING IN QUALITY COMPUTERS LONGDISTANCE TELECOMMUNICATIONS CLOTHING FUEL SPORTING GOODS EVEN THE DOMESTIC AUTO MANUFACTURERS ARE CONTAINING THEMSELVES IN THEIR FLUSH TIMES INTENSE COMPETITION DRIVES THE SHOW THE MAJOR EXCEPTIONS ARE THOSE AREAS OF THE ECONOMY DOMINATED BY GOVERNMENT AND ITS UNIONS SCHOOLING TRANSIT AND LAW ENFORCEMENT THE RETAILING REVOLUTION TRIGGERED BY THE LIKES OF SAM WALTON HAS UNLEASHED A BARGAIN CIRCUS WHO PAYS FULL PRICE ANYMORE THE VOLUME MERCHANDISER AND THE OUTLET STORE DRAW THE COMFORTABLE MIDDLE CLASS PRIVATE LABELS ABOUND A TRADEIN MARKET HAS DEVELOPED FOR COMPACTDISK RECORDINGS WITH OR WITHOUT MANAGED CARE PHARMACEUTICAL BILLS ARE EVEN BEING REINED IN GOVERNMENT POLICIES ENCOURAGED THE ECONOMY IN THIS DIRECTION WASHINGTON FLIRTED WITH A MARKET ORIENTATION DURING THE MUCHDECRIED 1980S MORE SIGNIFICANTLY CENTRAL BANKERS HERE AND ELSEWHERE TOUGHED OUT A STRATEGY FOR PRICE STABILITY THAT IS NOW SELFREINFORCING SO MUCH SO THAT THE DOLLAR CAN UNDERGO A PRECIPITOUS DECLINE AGAINST THE JAPANESE YEN WHILE MAINTAINING ITS WELL CURRENCY AROUND THE WORLD THE INTERNATIONAL TRADE COMMISSION A BARELY VISIBLE US AGENCY MADE HEADLINES A WEEK AGO WHEN IT SWATTED DOWN MUCH OF THE CAREFULLY ORCHESTRATED EFFORT BY OLDLINE STEEL COMPANIES TO WRAP A PROTECTIONIST BLANKET AROUND THEIR PRICE HIKES IN THE MONTHS TO COME MR CLINTON WILL HAVE THE OPTION TO GUT THE ITC OF SUCH FREEMARKET INFLUENCES AND HERE AS WITH HIS TAX BILL HE CAN TOUCH THE ECONOMY THE SAME WILL BE TRUE WITH OTHER REGULATORY AGENCIES MOST IMPORTANT THE FEDERAL COMMUNICATIONS COMMISSION MEANWHILE AN OPENING SWIPE AT REREGULATING THE AIRLINE INDUSTRY THROUGH THE REPORT OF A PRESIDENTIAL PANEL APPEARS TO HAVE STRUCK BUT A GLANCING BLOW LEAVING CARRIERS SUCH AS SOUTHWEST FREE TO CONTINUE REMAKING THE BUSINESS ON BEHALF OF LOWFARE PASSENGERS THE GIVEBACKS NOW BEING MADE BY UNIONIZED PERSONNEL AT SEVERAL AIRLINES IN RETURN FOR STOCK OWNERSHIP ARE CONFIRMATION THAT PRICECONSCIOUS CONSUMERS HAVE RETAINED THE UPPER HAND A LOT RIDES ON CONTINUED TRADE LIBERALIZATION A GOAL THAT PRESIDENT CLINTON APPEARS TO HAVE AT LEAST WHEN IT SUITS THE INTERESTS OF THE FORTUNE 500 CEOS WHOM HE ASSIDUOUSLY COURTS REVIVAL OF THE WARTORN INDUSTRIAL COUNTRIES HELPED SUSTAIN THE US THROUGH THE '50S AND TODAY BUYING AND SELLING BY THE DEVELOPING NATIONS PLAYS A SIMILAR ROLE EVEN IN THE ABSENCE OF FORMALIZED AGREEMENTS SUCH AS THE MUCH BELABORED NAFTA AND GATT OUR SHRUNKEN WORLD MAY HAVE MADE A CULTURE OF EXCHANGE INEVITABLE LIKEWISE THE ONRUSH OF TECHNOLOGY THAT HAS CONTRIBUTED SO MIGHTILY TO THE VALUE AGE IS LARGELY BEYOND THE ABILITIES OF LUDDITES AND LITIGATORS TO RESTRAIN THIS IS NOT TO CLAIM THAT ADVANCEMENT IS AUTOMATIC THE FEDERAL RESERVE'S STEADFASTNESS FOR SOUND MONEY MAY HINGE ON THE VOTES OF A COUPLE OF ITS GOVERNORS MR CLINTON STANDS TO GET HIS FIRST APPOINTMENT TO THE BOARD AT YEAR'S END WHEN NOT UNDER THE INFLUENCE OF THE HILLARY NETWORK OR AL GORE HE IS NOT ALWAYS AWFUL IN HIS CHOICES ALTHOUGH HE WILL HAVE TO ANSWER TO INFLATIONIST SENS SARBANES AND SASSER MANDATED PAYROLL COSTS ALSO UPSET THE ECONOMY AND HERE THE NEW ADMINISTRATION IS POKING AROUND REGARDLESS AS PROMISED IN AN EFFORT TO ENSURE GOOD JOBS ALL THREE BRANCHES OF GOVERNMENT HAVE MADE IT HARDER TO CREATE JOBS AND THIS PARTLY ACCOUNTS FOR WHY THE 1990S WON'T EVEN MATCH THE SLUGGISH '50S ON THIS FRONT SEE RELATED ILLUSTRATION WSJ AUG 3 1993 WITH THAT DRAG PLUS TAX INCREASES THE OBVIOUS HOPE FOR STRONG GROWTH IN THE CURRENT ECONOMY LIES IN THE EXTRAORDINARILY LOW INTEREST RATES THAT PRUDENCE AND PROVIDENCE HAVE MADE POSSIBLE THAT IS TWINNED WITH AN APPARENT RENEWAL OF AGGRESSIVE LENDING SUCH FORTUITOUS CIRCUMSTANCE IN THE LOAN MARKET HAS SOME ABILITY TO PUSH EVEN WHEN CONSUMERS ARE NOT PULLING THE FACT THAT THE WHOLE CLINTON DEFICIT REDUCTION STRATEGY RESTS ON THIS AT LEAST FOR NOW MEANS IT IS EVEN LESS STIMULATIVE THAN THE 1950S POLICY EVEN WHEN SUPPLEMENTED BY THE INTERSTATE HIGHWAY PROGRAM LOW RATES DURING THE EISENHOWER YEARS DIDN'T PRODUCE A PROLONGED BOOM THEY ALSO DIDN'T STAY ALL THAT LOW AFTER DIPPING AT THE END OF THE KOREAN WAR THE YIELD ON TOP CORPORATE BONDS ACTUALLY ROSE 50 BY THE TIME IKE LEFT OFFICE EVEN THOUGH UNEMPLOYMENT ALSO WAS RISING IT WASN'T UNTIL THE KENNEDYJOHNSON TERM WHEN THE 90 TOP TAXRATE BOIL FINALLY WAS LANCED THAT THE ECONOMY MOVED NO TWO TIMES ARE EVER THE SAME CERTAINLY THE DISCOUNTING WARS TODAY DWARF ANYTHING CONSUMERS ENJOYED A GENERATION AGO AND THIS AND OTHER COSTCUTTING FACTORS MAY PROVE ENGINES OF GROWTH TO THE DEGREE THEY ENTAIL INNOVATION AND NOT SIMPLE MEATAXING BUT FOR DEMOCRATS WEIGHING A DIFFICULT TAX VOTE THIS WEEK THE PARALLELS OUGHT TO BE SOBERING IT IS TRUE THAT IKE WITH GREAT PERSONAL POPULARITY SURVIVED HIS INERT REIGN IN FINE FORM LEGISLATIVE REPUBLICANS ON THE OTHER HAND BEGAN A LONG DECLINE FROM WHICH THEY HAVE NEVER RECOVERED 9308030110 930803 PEPPERAND SALT IT'S THE ECONOMY STUPID 9308030109 930803 MARKETING & MEDIA SIMON IMPOSES DEADLINE ON TV INDUSTRY TO TAKE FURTHER STEPS ON VIOLENCE ISSUE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF SEN PAUL SIMON TOOK ON THE TELEVISION INDUSTRY AT AN UNPRECEDENTED CONFERENCE ON TV VIOLENCE WARNING PRODUCERS AND THE NETWORKS THAT THEY HAVE 60 DAYS TO TAKE AGGRESSIVE ACTION OR FACE CONGRESSIONAL INTERVENTION THE ILLINOIS DEMOCRAT MAKING THE KEYNOTE ADDRESS TO A LARGE CROWD OF HOLLYWOOD'S MOST POWERFUL EXECUTIVES AND PRODUCERS PRAISED THE FLEDGLING STEPS THE TV INDUSTRY HAS TAKEN SO FAR ON THE VIOLENCE ISSUE BUT HE SEEMED TO SIGNAL THAT THE NEW VIOLENCEWARNING SYSTEM THAT THE FOUR MAJOR NETWORKS RECENTLY ANNOUNCED FOR NEXT FALL WON'T BE ENOUGH TO QUELL ANTIVIOLENCE CRITICS THE SENATOR AN OUTSPOKEN CRITIC OF TELEVISION VIOLENCE WHO WAS INVOLVED IN CRAFTING THE COMPROMISE WARNING SYSTEM RAISED THE STAKES UNEXPECTEDLY WHEN HE SAID THE INDUSTRY HAD ABOUT 60 DAYS TO ACT FURTHER ON ITS OWN BEFORE PUBLIC PRESSURE MAY FORCE CONGRESS TO TAKE MORE CONCRETE ACTION THE FEELING IS THERE THAT WE HAVE TO DO SOMETHING SEN SIMON WARNED IN ANSWERING A QUESTION FROM THE AUDIENCE IT WASN'T CLEAR WHAT STEPS THE SENATOR MIGHT PUSH IN WASHINGTON BUT HE CALLED ON THE TV INDUSTRY ITSELF YESTERDAY TO CREATE AN ADVISORY OFFICE ON TELEVISION VIOLENCE FUNDED BY THE INDUSTRY TO MONITOR THE INDUSTRY'S OWN HANDLING OF THE ISSUE THAT WOULD INCLUDE ANNUAL TRACKING REPORTS AND ASSESSMENTS OF THE EXPOSURE OF CHILDREN TO VIOLENT PROGRAMS MEASURES OFTEN USED BY TELEVISION'S CRITICS SOME TELEVISION EXECUTIVES WHO HAD NO WARNING OF THE 60DAY MANDATE REACTED ANGRILY IF PRIVATELY TO THE SENATOR'S FIAT THE ISSUE HAS BEEN AROUND SINCE THE BEGINNING OF TELEVISION BUT WE'RE SUPPOSED TO SOLVE IT IN 60 DAYS SAID ONE INCREDULOUS NETWORK EXECUTIVE SEN SIMON ALSO CALLED ON THE TV INDUSTRY TO ELIMINATE OR REDUCE VIOLENT PROMOTIONS FOR SHOWS AND TO EDUCATE THE NATION ABOUT THE HARMFUL EFFECTS OF TELEVISION VIOLENCE HE LIKENED THAT PROPOSED EFFORT TO THE NETWORKS' INVOLVEMENT IN ALERTING VIEWERS TO THE DANGERS OF CIGARETTE SMOKING IN URGING PRODUCERS AND NETWORK BRASS TO FORM THEIR OWN ANTIVIOLENCE INITIATIVE THE SENATOR ALSO CALLED ON THEM TO AVOID GLAMORIZING VIOLENCE AND TO INVOLVE THE ENTIRE INDUSTRY IN THE EFFORT TO OVERCOME TEMPTATIONS OF FINGERPOINTING AMONG ITS VARIOUS PLAYERS BUT THERE WAS PLENTY OF FINGERPOINTING AT THE VIOLENCE CONFERENCE YESTERDAY EXECUTIVES AT THE BROADCAST NETWORKS PLACED BLAME FOR ESCALATING VIOLENCE ON CABLE CHANNELS AND THE SYNDICATION BUSINESS SOME HOLLYWOOD PRODUCERS POINTED A FINGER BACK AT THE NETWORKS AND COMPLAINED THAT THE PROBLEM WASN'T WITH THEIR SHOWS BUT WITH HOW THE NETWORKS PROMOTED THE PROGRAMS AND SCHEDULED THEM THERE'S A LOT OF DEFENSIVENESS IN THIS ROOM SAID HOWARD STRINGER PRESIDENT OF CBS INC'S BROADCAST GROUP YESTERDAY'S CONFERENCE DID HOWEVER SERVE ONE CLEAR PURPOSE TO LET THE TELEVISION INDUSTRY PUT ON A PUBLIC DISPLAY OF CONCERN THAT MANY HOPED WOULD SERVE TO DEFLECT A CONGRESSIONAL CRACKDOWN ON VIOLENT CONTENT THE DAYLONG CONFERENCE WAS NOTABLE FOR THE LIST OF HIGHRANKING PARTICIPANTS THAT IT DREW 650 ATTENDEES AND A WAITING LIST OF 300 YET LITTLE WAS ACCOMPLISHED OTHER THAN CANDID DEBATE WHILE EXECUTIVES FROM BROADCAST AND CABLE NETWORKS TELEVISION STATIONS AND HOLLYWOOD PRODUCTION STUDIOS CONFRONTED THEIR CRITICS FROM WASHINGTON ACADEMIA AND INDUSTRY WATCHDOG GROUPS THEY FOUND LITTLE TO AGREE ON IN HASHING OUT WHAT HAS BECOME A HOT ISSUE DURING THE LAST SEVERAL MONTHS OF CONGRESSIONAL HEARINGS THE SESSION WAS SPONSORED BY THE NATIONAL COUNCIL FOR FAMILIES & TELEVISION CHAIRWOMAN MARIAN REES OPENED THE CONFERENCE BY CAUTIONING THAT THE PURPOSE OF THE GATHERING WAS TO HAVE AN EXCHANGE OF VIEWS NOT CARVE OUT AN AGREEMENT ON THE CENTRAL ISSUE IS TELEVISION TO BLAME EVEN PARTLY TO BLAME FOR THIS EPIDEMIC OF VIOLENCE IN OUR SOCIETY IT QUICKLY BECAME APPARENT HOWEVER THAT THE ISSUE WAS BROADER THAN JUST HOW MANY MURDERS SHOULD BE PERMISSIBLE AT WHAT TIME OF THE DAY PARTICIPANTS TALKED OF A BREAKDOWN IN CULTURE THE EASY AVAILABILITY OF HANDGUNS POVERTY AND GOVERNMENTAL ATTENTION OR THE LACK OF IT TO THE ISSUES OF CHILDREN AND FAMILIES ISSUES OF CENSORSHIP WERE ALSO RAISED THIS IS THE THOUGHT POLICE NBC WEST COAST PRESIDENT DON OHLMEYER COMPLAINED AFTER HEARING CRITICISM FROM ACADEMICS HE DEFENDED NETWORK PROGRAMMING AS WELL AS NETWORK SAFEGUARDS THAT KEEP VIOLENT PROGRAMMING OFF THE AIR NBC IS A UNIT OF GENERAL ELECTRIC CO SEVERAL NETWORK EXECUTIVES SAID PRIVATELY THAT REAL CHANGES IN CONTENT WILL HAPPEN ONLY WHEN ADVERTISERS PERCEIVE AN ADVANTAGE IN PULLING OUT OF SHOWS WITH VIOLENT CONTENT IN SUFFICIENT NUMBERS TO AFFECT NETWORKS' BOTTOM LINES 9308030108 930803 BUSINESS BRIEF HARLEYSVILLE GROUP INC MICHIGAN INSURANCE CONCERN TO BE BOUGHT FOR 44 MILLION HARLEYSVILLE GROUP INC HARLEYSVILLE PA SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE FOR 44 MILLION ALL THE SHARES OF LAKE STATES INSURANCE CO A MICHIGAN PROPERTY AND CASUALTY UNIT OF AMERICAN COMMUNITY MUTUAL INSURANCE CO LIVONIA MICH BRADFORD W MITCHELL HARLEYSVILLE'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE ACQUISITION WILL ESTABLISH HARLEYSVILLE'S PRESENCE IN MICHIGAN AND THE MIDWEST AND FURTHER THE COMPANY'S STRATEGY OF BUILDING A NATIONAL NETWORK OF REGIONAL INSURANCE COMPANIES THE TRANSACTION IS SUBJECT TO REGULATORY BOARD AND OTHER APPROVALS AT THE END OF LAST YEAR LAKE STATES HAD 706 MILLION IN ASSETS 9308030107 930803 LEISURE & ARTS OPERA SUMMER SONGS IN ECOFRIENDLY GLIMMERGLASS BY MANUELA HOELTERHOFF COOPERSTOWN NY SINCE THE OPENING OF ITS MODERN THEATER HERE IN 1987 THE GLIMMERGLASS OPERA FESTIVAL HAS ESTABLISHED ITSELF AS A PLEASANT WEEKEND DESTINATION ESPECIALLY FOR WELLHEELED NEW YORKERS WITH VACATION HOMES NEARBY OR HARDTOCOMEBY RESERVATIONS AT THE TOWN'S HULKING MYSTERIOUSLY POPULAR OTESAGA HOTEL THE PRODUCTIONS ARE OFTEN INTERESTING AND EVEN WHEN THEY ARE NOT THE DISAPPOINTMENTS ARE EASY TO TAKE IN THIS LEAFY HEARTLAND OF JAMES FENIMORE COOPER'S LEATHERSTOCKING TALES PICNICS ON THE GLIMMERGLASS LAWN UNINTERRUPTED BY GUNWIELDING PRETEENAGERS OR THE JIBBERING OF LUNATICS ARE AS OBVIOUSLY APPEALING TO MANHATTANITES AS THE ALICE BUSCH OPERA THEATER ITSELF NO GLITZY LINCOLN CENTER DUNGEON BUT A MODEL OF FRUGAL ELEGANCE DESIGNED BY THE ARCHITECT HUGH HARDY VENTURESOME DIRECTORS INCLUDING JONATHAN MILLER OFTEN PUT THEIR STAMP ON PRODUCTIONS THAT DO NOT COST THE MOON YOUNGER AND INEXPENSIVE SINGERS POPULATE THE INTIMATE ACOUSTICALLY PLEASING STAGE ON A RECENT WEEKEND GLIMMERGLASS OFFERED NEW PRODUCTIONS OF MASSENET'S WERTHER ROSSINI'S LE COMTE ORY AND MOZART'S COSI FAN TUTTE THE MELODIOUS MASSENET SETTING OF GOETHE'S EPISTOLARY NOVEL OF DOOMED LOVE WAS THE HIT IMAGINATIVELY STAGED BY MARK LAMOS WITH SUMPTUOUS CONDUCTING BY STEWART ROBERTSON AND A THRILLING PERFORMANCE BY THE TENOR GRAN WILSON THIS WERTHER WAS AS FRESH AS THE FRAGRANT WOODS THAT STIR THE ECOFRIENDLY POET TO SONG WHEN HE ARRIVES AT CHARLOTTE'S DOOR IN LITTLE WETZLAR IT WAS IN THAT TINY TOWN NEAR FRANKFURT THAT GOETHE FIRST WALKED CHARLOTTE BUFF DOWN A GARDEN PATH ULTIMATELY REBUFFED HE SOON PRODUCED IN 1774 THE SORROWS OF YOUNG WERTHER THE TEARSTAINED CORNERSTONE OF STURM UND DRANG A NOVEL SO POPULAR THAT TAILORS WORKED OVERTIME FILLING ORDERS FOR THE YELLOW VEST PREFERRED BY THE POET HERO CHINA ASKED FOR A TRANSLATION EVEN HALF A CENTURY LATER THACKERAY FOUND WERTHER'S HIGHSTRUNG SMALLTOWN SENTIMENTS SUITABLE FOR LAMPOONING CHARLOTTE HAVING SEEN HIS BODY BROUGHT BEFORE HER ON A SHUTTER/LIKE A WELLCONDUCTED PERSON WENT ON CUTTING BREAD AND BUTTER AND THAT IS HOW WE USUALLY SEE HER AS THE OPERA STARTS DUTIFULLY TAKING CARE OF THE COUNTLESS BROTHERS AND SISTERS ENTRUSTED TO HER BY HER DYING MOTHER WHO FURTHER EXTRACTED FROM CHARLOTTE A PROMISE THAT SHE MARRY THE TOWN BORE ALBERT IN THE GLIMMERGLASS PRODUCTION DESIGNED BY JOHN CONKLIN ALBERT WAS A TRAVELING SALESMAN WITH GLASSES AND WERTHER A LEFT BANK POET IN A BLACK TURTLENECK CHARLOTTE'S HOUSE STOOD ON A SMALL LANTERNLIT STREET RIGHT OUT OF MAGRITTE'S SURREAL WORLD THE TIME WAS PUSHED FORWARD TO THE EARLY 20TH CENTURY I KNOW THIS SOUNDS ALARMING BUT IT WORKED WITH THE MODERNIZING TOUCHES IF ANYTHING HEIGHTENING THE ESSENTIAL SADNESS AND BANALITY OF MASSENET'S MASTERPIECELET CAREFUL LIGHTING BY ROBERT WIERZEL FURTHERED THE FEELING OF LANGUID LONGING HOVERING OVER THE SCORE MR CONKLIN'S DESIGNS PLAYED WITH SCALE CHARLOTTE'S HOUSE WAS SO SMALL WERTHER COULD NEARLY STEP ON IT AS HE ENTERED HER BOURGEOIS WORLD TO DESTROY IT WITH HIS HUGE EGO AND OVERWHELMING LOVE MR WILSON A PERSUASIVE ACTOR WITH AN IMPASSIONED DELIVERY AND POWERFUL TOP RANGE WAS UTTERLY CONVINCING AS A MAN SO SELFCENTERED AND ILLMANNERED THAT HE SHOOTS HIMSELF ON CHRISTMAS EVE AS HE DIED ON AN ISOLATED PLATFORM CHARLOTTE'S TINY HOUSE LIT UP IN THE DARK DISTANCE A CRACKED AND TRUSSED IMAGE OF HER BROKEN HEART LOVELY DETAILS LIKE THIS ABOUNDED IN MR LAMOS'S STAGING BRINGING EVEN SECONDARY CHARACTERS TO LIFE SAY THE DRUNKS IN THE SECOND ACT WHO ENDED UP GETTING THE WORNOUT WAITER SLOSHED CAROL MEYER INJECTED REAL FEELING INTO THE ROLE OF SOPHIE USUALLY A SQUEAKY PESKY INGENUE CHRISTOPHER SCHALLENBRAND FOUND A GOOD DEAL OF PATHOS IN ALBERT'S FASTIDIOUS FORMALITY NEVER HAVE I SEEN CHARLOTTE'S LETTER SCENE STAGED SO EFFECTIVELY NOT INSIDE A DINKY ROOM BUT AGAINST A LANDSCAPE OF FROZEN WAVES SUGGESTING HER DESOLATE SPIRIT AND LITTERED WITH LETTERS AND YARDS OF COMPUTER PRINTOUTS INSTEAD OF JUST WEEPING OVER A SINGLE LETTER CHARLOTTE HELLEKANT A TALL INTERESTINGLOOKING MEZZO WITH AN EXPRESSIVE VOICE WRAPPED HERSELF IN THE POET'S WORDS SHE WORE THEM LIKE A SHAWL IT WAS FUNNY DEMENTED AND MOVING ALL AT THE SAME TIME ABOUT THE ONLY QUESTIONABLE MOMENT CAME JUST AS THE CURTAIN WAS DESCENDING WHEN MR LAMOS HAD CHARLOTTE PICK UP WERTHER'S PISTOL AND POINT IT AT HER OWN HEAD TO SUGGEST A DOUBLE SUICIDE UNIMAGINED BY GOETHE OR MASSENET BUT IT IS SURELY CHARLOTTE'S FATE TO RELIVE THE DEATH OF WERTHER EVERY CHRISTMAS JUST AS IT IS HER WEARY SIBLINGS' FATE TO HEAR ONCE MORE HOW AWFUL THEY WERE SINGING JOLLY CAROLS WHILE SHE WAS MOPPING THE BLOODSOAKED BROW OF THE DYING MAN WERTHER DOESN'T WANT CHARLOTTE TO DIE HE WANTS HER TO SUFFER FOR MAKING HIM SUFFER GIVEN WERTHER'S STARK SIMPLE BEAUTY IT WAS SURPRISING THAT MR CONKLIN ALSO DESIGNED THE CLUTTEREDLOOKING COMTE ORY A MEDLEY OF STYLES AND SIGHT GAGS WEIGHED HEAVILY INDEED ON THIS LIGHT LITTLE COMEDY PENNED BY ROSSINI IN 1828 EVER THRIFTY WITH HIS INSPIRATION AS WITH HIS FORTUNE THE COMPOSER RECYCLED A NUMBER OF BOUNCY TUNES HE HAD PREVIOUSLY INVESTED IN IL VIAGGIO A REIMS AN UNDERPERFORMED AND MUCH BETTER OCCASION PIECE WRITTEN FOR THE CORONATION OF CHARLES X WHO SOON PROVED HIMSELF TO BE A BIGOT AND A VERY BAD KING ORY POKES FUN AT RESTORATION FRANCE'S PIOUS PRETENSIONS AND NEOGOTHIC CHIC IN AN ABSURD LIBRETTO ABOUT AN OVERSEXED COUNT WHO IN THE TIME OF THE CRUSADES LAYS SIEGE TO A PRIMLY PROTESTING COUNTESS WITH A PACK OF DRUNK NUNS IT'S A PERIOD PIECE THAT THE DIRECTOR KEITH WARNER BURDENED EXCESSIVELY WITH SLAPSTICK TURNING THE COUNT INTO A LEERING STUD WITH A THUNDERBIRD AND FILLING OUT THE PROCEEDINGS WITH OTHER VISUAL ODDITIES SUCH AS A MYSTERIOUS SLIDE SHOW OF THE EXPULSION FROM PARADISE WITH HIS FREELY PRODUCED TOP RANGE AND EASYGOING COLORATURA PAUL AUSTIN KELLY WAS A VOCALLY ATTRACTIVE COUNT STUCK INSIDE A SICKMAKING PASTEL LEISURE SUIT THE VERY YOUNG LYNDY SIMONS STEPPING IN ON SHORT NOTICE AS THE COUNTESS SHOWED OFF STEADY NERVES AND PERKY COLORATURA IN THE TROUSERS ROLE OF THE PAGE ISOLIER EMIL GOLDEN'S MEZZO RESONATED ATTRACTIVELY FROM UNDERNEATH AN UNBECOMING WIG MODELED ON THE RUGS ROSSINI USED ON HIS PATE FOR INEXPLICABLE REASONS NO ONE ELSE WORE 19THCENTURY CLOTHES BUT NO MATTER HOW BAFFLING ORY AT LEAST FLOWED SWIFTLY UNDER DANIEL BECKWITH'S BATON AND AVOIDED THE BOREDOM OF GLIMMERGLASS'S BOTCHED COSI THIS ACT OF LESEMOZART DRONED ON FOR MORE THAN THREE HOURS IN A GLOOMY STAGING IN WHICH MOMENTS OF ILLUMINATION WERE LITERALLY SCARCE ARE WE NOT MEANT TO BE SOMEWHERE IN 18THCENTURY NAPLES IN THE SALON OF TWO AIRHEADS WHOSE STEADFASTNESS WILL SOON BE TESTED BY LOVELORN ALBANIANS IS THIS NOT A COMEDY NEVER MIND THE SENSE OF DISILLUSION HOVERING NEAR ITS CORE CONSISTING ENTIRELY OF AN ANGLED MOTTLED LONG WALL RUNNING THE EXTENT OF THE STAGE THE SET BY ROBERT ISRAEL HAD ALL THE CHARM OF BERLIN ON A RAINY DAY PIERCED ONLY BY TWO DOORS AND PLACED CLOSE TO THE ORCHESTRA PIT THE WALL ALLOWED FOR JUST A SLIVER OF CLAUSTROPHOBIC PLAYING SPACE THOUGH EVEN THAT STRETCHED THE INVENTIVE CAPABILITIES OF DIRECTOR MARTHA CLARKE WHO HAS ONLY RECENTLY TURNED FROM DANCE THEATER TO OPERA AMBITIOUSLY CHOOSING IMMENSELY DIFFICULT WORKS AN APPARENTLY UNENCHANTING MAGIC FLUTE WAS LAST SEASON'S VENTURE I'VE LIKED SOME OF MS CLARKE'S DANCETHEATER PIECES MOST RECENTLY ENDANGERED SPECIES WITH ITS LINGERING IMAGE OF FLORA THE BABY ELEPHANT BIDDING US A FIRM GOODNIGHT BY CLOSING A DOOR WITH HER TRUNK MANY WERE THE TIMES I HOPED TO SEE HER TRUNK REACH FOR THE DOORKNOBS AND SET US FREE BUT THERE WAS NOTHING TO DISTRACT US FROM FIORDILIGI AND HER DREARY FRIENDS NO TWOTON PET NOT EVEN A TRAINED GERBIL FOR A CHOREOGRAPHER THE EVENING OFFERED LITTLE IN THE WAY OF FLUID MOVEMENTS CHARACTERREVEALING GESTURES OR EVEN INTERESTING GROUPINGS ONCE PAST THE FIRST CANDLELIT SCENE WHETHER MS CLARKE SAW THIS PIECE AS A CRUEL JOKE PLAYED BY MEN WITH CONTEMPORARY OVERTONES OR A ROCOCO COMEDY OF MANNERS WAS LEFT UNCLEAR GIVEN LITTLE TO DO JING WEI AND MARY DELLI COLLI FOCUSED ON THEIR SINGING WHICH WAS TECHNICALLY ACCOMPLISHED IF DEVOID OF THE INTERPRETIVE FLOURISHES MATURE SINGERS COULD BRING TO FIORDILIGI AND DORABELLA PAUL GROVES AND ERICH PARCE WERE SIMILARLY SKILLFUL AND A GOOD DEAL MORE PERSONABLE AS FERRANDO AND GUGLIELMO CLARE GORMLEY DESPINA WAS A LIVELY GENERIC SOUBRETTE WITH ANDREW WENTZEL DON ALFONSO THE MOST DIMENSIONAL OF THE PALLIDLY DRAWN CHARACTERS VERY MUCH A CAUSTIC 18THCENTURY GENTLEMAN AND NOT A COSTUMED SINGER BUT WHILE THE GRANDEE DOES GET THE PLOT ROLLING HE IS NOT MEANT TO BE ITS STAR 9308030105 930803 ECONOMY OPEC OIL PRODUCTION ROSE DURING JULY WITH WEAK PRICES LIKELY UNTIL YEAR END BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL CRUDE OIL PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS RISING DESPITE AN OVERSUPPLIED OIL MARKET AS A RESULT THE OIL MARKET IS GENERALLY EXPECTED TO REMAIN WEAK WITH PRICES UNDER PRESSURE AT LEAST UNTIL THE FOURTH QUARTER WHEN A SEASONAL RISE IN PETROLEUM DEMAND NORMALLY OCCURS FIGURES FOR OPEC'S JULY CRUDE OUTPUT AREN'T FINAL YET BUT THE MONTHLY OIL MARKET REPORT TO BE RELEASED LATER THIS WEEK BY THE INTERNATIONAL ENERGY AGENCY IS CERTAIN TO SHOW THAT OPEC'S JULY PRODUCTION RAN WELL ABOVE JUNE'S 243 MILLION BARRELS A DAY EARLY ESTIMATES OBTAINED YESTERDAY FROM OTHERS WHO TRACK OPEC'S PRODUCTION SUGGEST THAT JULY'S VOLUME OF CRUDE OIL AVERAGED AS MUCH AS 246 MILLION BARRELS A DAY THAT WOULD BE ONE MILLION BARRELS A DAY ABOVE THE THIRDQUARTER PRODUCTION CEILING ONE LEADING MONITOR OF OPEC'S PRODUCTION PETROLOGISTICS LTD LOOKS FOR AUGUST OUTPUT TO BE EVEN HIGHER LAST MONTH'S SURPRISE WAS IRAN WHICH WAS UP WELL OVER 150000 BARRELS A DAY FROM JUNE BUT THE BIG QUESTION FOR AUGUST IS WHETHER KUWAIT WILL GO UP FURTHER AS IT SAID IT WOULD AT THE LAST OPEC CONFERENCE SAID CONRAD GERBER PRESIDENT OF THE GENEVABASED FIRM OIL PRICES WERE SLIGHTLY HIGHER YESTERDAY BECAUSE OF TECHNICAL FACTORS AND NEWS OF A FIRE AT EXXON CORP'S BATON ROUGE LA REFINERY CRUDE OIL FOR SEPTEMBER DELIVERY ROSE NINE CENTS TO SETTLE AT 1797 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE STILL THAT IS 3 A BARREL LESS THAN THE CRUDE PRICE AS RECENTLY AS LATE APRIL AND COMMENTS BY OPEC'S SECRETARYGENERAL SUBROTO YESTERDAY UNDERSCORED THE BEARISH OUTLOOK ON PRICES THAT HAS SPREAD THROUGH THE OIL INDUSTRY MR SUBROTO ACCORDING TO THE OPEC NEWS AGENCY TOLD REPORTERS IN INDONESIA THAT PRICES MOST LIKELY WILL CONTINUE TO DECLINE IN THE THIRD QUARTER BECAUSE OF OVERSUPPLY HE BLAMED AN INCREASE IN OIL EXPORTS FROM RUSSIA AND SLOW ECONOMIC GROWTH IN THE INDUSTRIAL COUNTRIES INCLUDING JAPAN AND THE US AND SOME EUROPEAN NATIONS HE ALSO CITED HIGH OIL INVENTORIES IN THE INDUSTRIAL NATIONS AND CONCERN ABOUT IRAQ'S POSSIBLE REENTRY INTO THE WORLD OIL MARKET MOST IN THE INDUSTRY HAVE RULED OUT ANY PROSPECT OF IRAQI OIL FLOWING BEFORE THE FOURTH QUARTER IF THEN BUT SLUGGISH NATIONAL ECONOMIES IN OILCONSUMING NATIONS HAVE BROUGHT A SLOWING IN THE GROWTH OF WORLD OIL DEMAND EARLY THIS YEAR GLOBAL DEMAND HAD BEEN EXPECTED TO RISE BY AT LEAST 500000 BARRELS A DAY FOR 1993 BUT IN ITS LATEST MONTHLY OIL MARKET REPORT THE INTERNATIONAL ENERGY AGENCY FURTHER REDUCED ITS ESTIMATE FOR 1993 WORLD OIL DEMAND TO 672 MILLION BARRELS A DAY ONLY 200000 BARRELS A DAY ABOVE THE 1992 LEVEL ENERGY SECURITY ANALYSIS INC WHICH TRACKS OIL SUPPLIES WORLDWIDE NOW ESTIMATES GLOBAL OIL DEMAND IN THE THIRD QUARTER WILL BE ONLY 654 MILLION BARRELS A DAY DOWN FROM 656 MILLION A YEAR EARLIER WE ARE NOT HAVING THE TYPE OF GROWTH THE OIL ANALYSTS WERE TALKING ABOUT AT THE BEGINNING OF THE YEAR SAID SARAH EMERSON A MARKET ANALYST WITH THE WASHINGTONBASED FIRM IT'S AGAINST THIS BACKDROP OF LESSTHANBUOYANT DEMAND COMBINED WITH LINGERING FEARS IRAQ MAY YET WORK OUT ITS DIFFERENCES WITH THE UNITED NATIONS AND RESUME ITS OIL EXPORTS THAT OPEC IS PRODUCING MORE THIS CANNOT BE POSITIVE FOR THE OIL MARKET SAID WILLIAM RANDOL A SALOMON BROTHERS INTERNATIONAL OIL ANALYST WHO ALSO IS ESTIMATING OPEC'S JULY OUTPUT AT 246 MILLION BARRELS A DAY ONLY A FEW OPEC COUNTRIES ACCOUNT FOR THE RISING OUTPUT ONE IS KUWAIT WHICH FORMERLY PRODUCED 16 MILLION BARRELS A DAY BUT REJECTED A SLIGHTLY HIGHER OPEC QUOTA AND REMAINS OUTSIDE THE ALLOTMENT SYSTEM ACCORDING TO MR GERBER OF PETROLOGISTICS KUWAIT PRODUCED NEARLY 19 MILLION BARRELS A DAY IN JULY AND APPEARS TO BE ABLE TO REACH ITS SEPTEMBER TARGET OF NEARLY 22 MILLION BARRELS A DAY AMONG THOSE COUNTRIES WHICH DO HAVE OPEC QUOTAS NIGERIA AND IRAN GENERALLY ARE CITED AS THE CHIEF OVERPRODUCERS NIGERIA'S QUOTA IS SLIGHTLY UNDER 18 MILLION BARRELS A DAY BUT IT HAS BEEN PRODUCING AROUND 19 MILLION A DAY IRANIAN OFFICIALS DENIED AGAIN YESTERDAY THAT THEY ARE PRODUCING MORE THAN THEIR QUOTA OF 33 MILLION BARRELS A DAY STILL MOST MONITORS OF OPEC'S OUTPUT ESTIMATE IRAN'S JULY PRODUCTION WAS BETWEEN 300000 AND 400000 BARRELS A DAY HIGHER THAN ITS QUOTA IRANIAN OUTPUT HAS CLIMBED STEADILY SINCE APRIL REPORTED WEEKLY PETROLEUM ARGUS AN INDUSTRY PUBLICATION 9308030104 930803 PAYCO AMERICAN FACES CIVIL CHARGES BROUGHT BY TRADE COMMISSION WASHINGTON THE FEDERAL TRADE COMMISSION ACCUSED PAYCO AMERICAN CORP ONE OF THE COUNTRY'S LARGEST DEBTCOLLECTION AGENCIES OF VIOLATING THE FAIR DEBT COLLECTION PRACTICES ACT CHARGES FILED IN FEDERAL COURT IN MILWAUKEE ALLEGE THAT THE BROOKFIELD WIS COMPANY LIED TO DEBTORS USED ABUSIVE LANGUAGE AND PROFANITY IN ATTEMPTS TO COLLECT AND WRONGLY SUGGESTED TO CONSUMERS THAT THEY WOULD BE ARRESTED FOR NONPAYMENT PAYCO ALSO IS CHARGED WITH CONTACTING CONSUMERS AT WORK EVEN WHEN DOING SO COULD JEOPARDIZE THE JOB OF THE PERSON BEING CONTACTED THE FTC IS SEEKING A CEASEANDDESIST ORDER AS WELL AS A MONETARY CIVIL PENALTY AND IS REQUESTING THAT PAYCO BE REQUIRED TO INFORM CONSUMERS IN WRITING THAT THEY HAVE A RIGHT TO CUT OFF COMMUNICATION WITH THE COLLECTION AGENCY AT ANY TIME THE FTC IS ALSO ASKING THAT PAYCO BE DIRECTED TO ORDER ALL ITS EMPLOYEES TO SIGN AN AGREEMENT INDICATING THAT THEY WON'T DISCUSS PEOPLE'S DEBTS WITH THIRD PARTIES PAYCO HAD NO COMMENT 9308030103 930803 ABREAST OF THE MARKET STOCK PRICES RISE SHARPLY AS CRISIS OVER EUROPEAN CURRENCIES EASES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS ROSE SHARPLY AS TURMOIL OVER EUROPE'S CURRENCY CRISIS EASED THE EUROPEAN COMMUNITY AGREED TO RELAX TERMS OF ITS EXCHANGE RATE MECHANISM ALLOWING THEIR CURRENCIES GREATER ROOM TO FLUCTUATE ON FRIDAY IN A TUMULTUOUS SESSION EQUITY PRICES FELL IN PART AS THE CURRENCY CRISIS BROUGHT THE SYSTEM TO THE BRINK OF COLLAPSE THE DOW JONES INDUSTRIAL AVERAGE ROSE 2152 POINTS OR 061 TO 356099 THE STANDARD & POOR'S 500STOCK INDEX ADDED 202 POINTS OR 045 TO END AT 45015 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 104 POINTS OR 042 TO FINISH AT 24953 BIG BOARD ADVANCERS LED DECLINING ISSUES 1188 TO 795 ON VOLUME OF 2289 MILLION SHARES DOWN FROM 2503 MILLION SHARES ON FRIDAY OVERSEAS MARKETS RALLIED ON THE EC NEWS WITH LONDON PARIS AND FRANKFURT SHARE PRICES ALL MOVING HIGHER THE NEW EC AGREEMENT ALLOWS COUNTRIES SUCH AS FRANCE AND BRITAIN TO MORE READILY CUT THEIR INTEREST RATES HOWEVER LONGPROMISED RATE REDUCTIONS BY FRANCE AND OTHER MAJOR COUNTRIES DIDN'T MATERIALIZE SURPRISING MANY ANALYSTS EUROPEAN MARKETS WERE SHAKEN LAST WEEK WHEN THE GERMAN BUNDESBANK REFUSED TO LOWER ITS KEY DISCOUNT RATE BUT ANALYSTS SAID THE US DOLLAR'S FALL AGAINST THE GERMAN MARK AND THE YEN CAUSED SOME CONCERN THE US CURRENCY ROSE AGAINST THE FRENCH FRANC HOWEVER EDWARD E COLLINS III EXECUTIVE VICE PRESIDENT OF INSTITUTIONAL TRADING AT DAIWA SECURITIES AMERICA SAID EQUITIES ARE CONTENDING WITH MANY VARIABLES CREATING ALMOST AN INFORMATION OVERLOAD ASIDE FROM THE EUROPEAN NEWS INFLATION CONCERNS WORRIES OVER PRESIDENT CLINTON'S BUDGET PACKAGE THE TAIL END OF EARNINGS SEASON AND JULY'S EMPLOYMENT REPORT SCHEDULED FOR RELEASE FRIDAY ARE ALL AFFECTING INVESTOR PSYCHOLOGY A LOT OF THESE STOCKS ARE MAKING NICE MOVES IF YOU KNOW WHAT POCKETS TO BE IN MR COLLINS SAID I THINK WE'RE LOOKING AT A SLIGHT UPWARD TREND BUT WE WON'T BREAK OUT FOR AWHILE THOUGH GOLD PRICES FELL THE COMMODITY RESEARCH BUREAU INDEX GAINED NEARLY FOUR POINTS BOTH ARE IMPORTANT INFLATION GAUGES BUT STEPHEN MINDNICH A TRADER IN CHARGE OF OFFEXCHANGE TRADING AT JEFFRIES & CO SAID OIL PRICES ARE STILL LOW AND RISING COMMODITIES PRICES ARE RELATED PRIMARILY TO THE FLOODS IN THE MIDWEST WHICH HAVE PUSHED UP GRAIN PRICES IN DOMESTIC ECONOMIC NEWS THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX OF MANUFACTURING ACTIVITY ROSE TO 495 LAST MONTH ABOVE AN EXPECTED READING OF 48 AND 483 IN JUNE A FIGURE ABOVE 50 SEEMS TO INDICATE ECONOMIC EXPANSION WHILE A READING BELOW 50 IS VIEWED AS A SIGN OF CONTRACTION A SEPARATE REPORT SHOWED THAT JUNE CONSTRUCTION SPENDING JUMPED 12 THE LARGEST INCREASE SINCE LAST DECEMBER MARKET WATCHERS SAID BOND PRICES AIDED EQUITIES THOUGH BONDS SLIPPED EARLY ON THE ECONOMIC DATA THE BENCHMARK LONG BOND GAINED 1/8 OR 250 FOR EACH 1000 FACE VALUE TO YIELD 655 GENERAL MOTORS ROSE 1 1/8 TO 49 5/8 ON POSITIVE COMMENTS MADE BY MORGAN STANLEY GLOBAL AUTO ANALYST SCOTT MERLIS IN THIS WEEK'S ISSUE OF BARRON'S MR MERLIS SAID AUTO MAKERS RIGHT NOW CAN GENERATE SURPRISING EARNINGS POWER WITHOUT MUCH HELP FROM THE UNITED AUTO WORKERS EVEN IF THE CURRENT CONTRACT'S FRAMEWORK IS CARRIED OVER WITHOUT MAJOR CONCESSIONS THE ANALYST SAYS GM CAN EARN 750 A SHARE IN THE 19961997 PERIOD ALSO THE CAR MAKER SAID MIDJULY CAR AND TRUCK SALES ROSE MR MERLIS ALSO SAID FORD CAN EARN AT LEAST 7 A SHARE AND CHRYSLER CAN EARN AT LEAST 680 FOR THE 19961997 PERIOD FORD CLIMBED 1 3/4 TO 54 1/2 AND CHRYSLER ROSE 1/2 TO 44 3/8 OTHER BLUE CHIPS ALSO IMPROVED AFTER SHARP SELL OFFS LATE LAST WEEK MINNESOTA MINING & MANUFACTURING WAS UP 1 3/8 TO 106 3/8 CATERPILLAR RALLIED 1 1/4 TO 78 1/8 AND UNITED TECHNOLOGIES INCREASED 1 5/8 TO 55 7/8 STUDENT LOAN MARKETING ASSOCIATION SOARED 1 5/8 TO 49 1/8 AS CONGRESS WORKED ON FINALIZING A PLAN TO RESTRUCTURE THE PROGRAM THAT LENDS 15 BILLION ANNUALLY TO 34 MILLION STUDENTS A PROPOSAL HAMMERED OUT FRIDAY CALLS FOR THE GOVERNMENT RATHER THAN BANKS TO MAKE 60 OF THE LOANS CHIP MAKERS SUCH AS MOTOROLA SOARED ON A BULLISH HEARD ON THE STREET COLUMN IN THIS NEWSPAPER YESTERDAY MOTOROLA JUMPED 3 3/4 TO 94 3/8 ANALOG DEVICES MOVED 7/8 HIGHER TO 23 1/4 AND ADVANCED MICRO DEVICES EDGED UP 3/4 TO 24 5/8 GRUMMAN SKIDDED 1 TO 40 1/4 AN ARTICLE IN THIS NEWSPAPER YESTERDAY SAID THE DEFENSERELATED PRODUCTS MANUFACTURER IS UNDER CRIMINAL INVESTIGATION FOR ALLEGEDLY OVERCHARGING THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BY AS MUCH AS 8 MILLION EARNINGS CONTINUED TO PLAY A ROLE WINNDIXIE FOR EXAMPLE GOT A 1 7/8POINT BOOST TO 58 7/8 ON IMPROVED FISCAL FOURTHQUARTER EARNINGS THE OPERATOR OF A CHAIN OF RETAIL SELFSERVICE FOOD STORES EARNED 110 A SHARE UP FROM 107 A YEAR EARLIER THE COMPANY'S AVERAGE AND SAMESTORE SALES BOTH ROSE VODAFONE SURGED 3 1/8 TO 74 AN ARTICLE IN THIS WEEK'S BARRON'S SAID THE COMPANY'S GOOD EARNINGS GROWTH AND NO LONGTERM LOAD MAKE IT STAND OUT FROM OTHER CELLULAR PHONE COMPANIES MERCK & CO TOPPED THE MOST ACTIVES LIST AND ADDED 1/8 TO 30 3/4 THE PHARMACEUTICAL COMPANY'S PARTNERSHIP WITH DUPONT CO CALLED DU PONT MERCK PHARMACEUTICAL CO HAS ENTERED INTO AN AGREEMENT WITH BURROUGHS WELLCOME TO COPROMOTE IN THE US BURROUGHS WELLCOME'S LAMICTAL BRAND LAMOTRIGINE A NEW GENERATION OF ANTICONVULSANT FOR EPILEPSY DUPONT WAS UNCHANGED AT 46 7/8 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 088 OR 020 TO 43788 THERE WERE 259 GAINERS AND 293 DECLINERS 9308030102 930803 REVIEW & OUTLOOK EDITORIAL ASIDES ISRAEL AND THE LAW COURT PROCEEDINGS ARE STILL UNDERWAY BOTH IN THE US AND ISRAEL BUT IT APPEARS THAT JOHN DEMJANJUK WILL RETURN TO HIS NATIVE UKRAINE FOLLOWING HIS LEGAL VICTORY ON WAR CRIMES CHARGES LAST WEEK THE ISRAELI SUPREME COURT DECIDED UNANIMOUSLY TO ACQUIT HIM OF THE CRIMES OF IVAN THE TERRIBLE THE MOST SADISTIC GUARD AT THE TREBLINKA GAS CHAMBERS THE CASE SHOULDN'T PASS WITHOUT SOME REFLECTIONS ON THE RULE OF LAW IN A DEMOCRACY IN A DECISION THAT WAS SURE TO BE POLITICALLY UNPOPULAR IN A NATION BUILT BY SURVIVORS OF THE HOLOCAUST THE HIGH COURT DECIDED TO FREE DEMJANJUK BECAUSE IT FOUND A REASONABLE DOUBT WHETHER ANYTHING SIMILAR WOULD BE LIKELY IN ANY OTHER JUDICIAL SYSTEM IN THE MIDDLE EAST IS ONE QUESTION TO PUT IN THE BALANCE IN JUDGING THE ACTIONS ISRAEL TAKES TO DEFEND ITSELF 9308030101 930803 EUROPE'S CURRENCY CRISIS GERMANY'S NEIGHBORS ARE BRIDLING AT ITS APPARENT INWARD TURNING BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL SINCE THE BERLIN WALL TUMBLED DOWN IN 1989 GERMAN CHANCELLOR HELMUT KOHL HAS OFTEN REPEATED HIS VIEW THAT GERMAN UNIFICATION AND THE CLOSER INTEGRATION OF THE EUROPEAN COMMUNITY ARE TWO SIDES OF THE SAME COIN THE VIRTUAL ABANDONMENT OF EUROPE'S SYSTEM OF FIXED EXCHANGE RATES IS THE MOST RECENT AND MOST STRIKING PROOF THAT MANY GERMANS STRONGLY DISAGREE WITH THEIR CHANCELLOR'S SENTIMENT NOT LEAST OF THEM THE POWERFUL GERMAN CENTRAL BANKERS FACED WITH THE CHOICE AS THEY SEE IT OF KEEPING THE GERMAN ECONOMY AFLOAT OR KEEPING EUROPEAN IDEALISM AFLOAT GERMAN INTERESTS CLEARLY WIN OUT INDEED AS GERMANY BECOMES INCREASINGLY BOGGED DOWN IN A MIRE OF HEAVY ECONOMIC AND POLITICAL PROBLEMS IT SEEMS TO ITS NEIGHBORS AND PARTNERS TO BE TURNING EVER MORE INWARD AT A TIME WHEN THE FUTURE OF WESTERN EUROPE IS MORE UNCERTAIN THAN IT HAS BEEN FOR DECADES THEY SENSE A BIG AND GROWING GULF BETWEEN THE EUROPEAN RHETORIC OF CHANCELLOR KOHL AND THE PURELY NATIONAL INTERESTS THAT SEEM TO BE DRIVING MANY OF GERMANY'S ACTIONS IN POLITICS AS WELL AS ECONOMICS AT FIRST THE NERVOUS TALK AMONG GERMANY'S NEIGHBORS WAS OF A NEWFOUND ASSERTIVENESS ESPECIALLY IN DECEMBER 1991 WHEN BONN PUSHED ITS EUROPEAN PARTNERS INTO RECOGNIZING THE INDEPENDENCE OF SLOVENIA AND CROATIA A DECISION THAT MANY EUROPEANS NOW SAY FUELED THE FLAMES OF THE CIVIL WAR IN FORMER YUGOSLAVIA IN THE MEANTIME NERVOUSNESS HAS BEEN REPLACED BY ANGER AND FEAR WHEN THE POUND STERLING WAS PUSHED OUT OF THE EUROPEAN MONETARY SYSTEM'S EXCHANGERATE MECHANISM LAST SEPTEMBER BRITAIN ERUPTED IN A VITRIOLIC ATTACK ON GERMANY AND PARTICULARLY ON HELMUT SCHLESINGER THE BUNDESBANK PRESIDENT WHO WAS ACCUSED OF DELIBERATELY JETTISONING THE UK CURRENCY SOME NEWSPAPERS DEALING A LOW BLOW EVEN DRAGGED UP HIS PAST IN A NAZI YOUTH ORGANIZATION AT THE TIME FRANCE AND THE REST OF CONTINENTAL EUROPE STAYED QUIETLY ON THE SIDELINES TUTTUTTING ABOUT BRITISH OVERREACTION NO LONGER OVER THE PAST FEW DAYS THE EUROPEAN NEWS MEDIA HAVE BEEN UNITED IN DENOUNCING THE BUNDESBANK AND THE BONN GOVERNMENT AS THE MAIN CULPRITS OF THE LATEST CURRENCY DEBACLE IF ONLY THE BUNDESBANK HAD REACTED MORE SENSITIVELY TO OBVIOUS PRESSURES IN THE SYSTEM BY CUTTING INTEREST RATES AGGRESSIVELY PUTTING ASIDE FOR ONCE ITS DOGMATIC APPROACH TO FIGHTING GERMAN INFLATION SO THE ARGUMENT GOES THE WEEKEND TURMOIL AND POLITICAL DEBACLE COULD HAVE BEEN AVOIDED EUROPEAN POLITICAL LEADERS HAVE BEEN CAUTIOUS ABOUT ATTACKING GERMANY IN PUBLIC WARY OF TURNING THE CURRENCY CRISIS INTO AN EVEN BIGGER POLITICAL ONE BUT IN PRIVATE MANY FUME FRENCH OFFICIALS ALARMED BY GERMAN POLICY ON ARMING BOSNIAN MUSLIMS ON WORLDTRADE TALKS COVERING THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND ON OTHER ISSUES WERE COMPLAINING ANGRILY ABOUT MR KOHL AND THE FRAGILE STATE OF FRANCOGERMAN RELATIONS EVEN BEFORE THE LATEST DEBACLE THE STRAINED ATMOSPHERE WAS BEST CAPTURED IN A FURIOUS LEADING ARTICLE IN THE FRENCH NEWSPAPER LE MONDE MONDAY IT TALKED ABOUT THE ECONOMIC DIKTAT OF THE BONN GOVERNMENT AND THE FRANKFURTBASED BUNDESBANK AND SAID MR KOHL'S ADMINISTRATION DIDN'T SEEM TO UNDERSTAND HOW MONETARY TURMOIL WAS THREATENING THE ENTIRE EDIFICE OF FRANCOGERMAN RELATIONS THE TIME HAD COME LE MONDE CONCLUDED FOR GERMANY TO END ITS AMBIVALENCE AND CLARIFY WHERE ITS ALLEGIANCE LAY OTHERWISE THE NEWSPAPER SAID THE CURRENT MONETARY CRISIS COULD END IN THE SHIPWRECK OF THE EUROPEAN PROJECT THAT MAY BE OVERSTATING THE PROBLEM OVER THE PAST FIVE DECADES FRANCE AND GERMANY HAVE MOVED FROM BEING MORTAL ENEMIES TO BEING THE BEST OF FRIENDS BUT EVEN AMONG FRIENDS SAYS ONE SENIOR GERMAN OFFICIAL THERE ARE SOMETIMES ARGUMENTS HE NOTES THAT FRENCH PRESIDENT FRANCOIS MITTERRAND WAS EXTREMELY WARY ABOUT GIVING HIS BLESSING TO GERMAN UNIFICATION IN THE FIRST PLACE AND THAT MORE RECENTLY PARIS SEEMS TO HAVE PUT UP OBSTACLES TO GERMAN MEMBERSHIP ON THE UNITED NATIONS SECURITY COUNCIL THE SPAT OVER CURRENCIES GOES DEEPER THAN SUCH DIFFERENCES IT HAS TO DO WITH THE VERY EXISTENCE OF THE BUNDESBANK ONE OF THE MOST RESPECTED INSTITUTIONS IN GERMANY AS WELL AS WITH THE FUTURE OF THE GERMAN MARK THE CHIEF SYMBOL OF THE NATION'S POSTWAR PROSPERITY SINCE ITS ESTABLISHMENT IN THE POSTWAR YEARS THE BUNDESBANK'S CREDIT POLICIES HAVE BEEN GUIDED ALMOST ENTIRELY BY DOMESTIC INFLATIONARY PRESSURES WHEN IT HAS LOOKED ABROAD IT HAS DONE SO LARGELY TO INVESTIGATE THE IMPACT OF EXTERNAL ECONOMIC FACTORS ON GERMAN INFLATION THE BANK BITTERLY FOUGHT THE 1979 ESTABLISHMENT OF THE EUROPEAN MONETARY SYSTEM FEARING THAT IT WOULD HAVE TO SPEND BILLIONS PROPPING UP THE THENWEAK FRENCH FRANC BUT IT WAS OVERRULED BY THE BONN GOVERNMENT MORE RECENTLY IT HAS PLAYED THE ROLE OF LEADING DISSIDENT OVER THE ESTABLISHMENT OF A SINGLE EUROPEAN CURRENCY WHICH WAS DECIDED BY EC GOVERNMENTS AT THEIR 1991 SUMMIT IN THE DUTCH TOWN OF MAASTRICHT THE BUNDESBANK STANDS TO LOSE EVERYTHING IF MAASTRICHT IS IMPLEMENTED AS PLANNED ITS ROLE AT THE HEART OF THE EUROPEAN FINANCIAL SYSTEM WILL BE TAKEN OVER BY A NEW EUROPEAN CENTRAL BANK WHICH MAY NOT BE AS COMMITTED TO FIGHTING INFLATION AND THE GERMAN MARK WILL DISAPPEAR NOT SURPRISINGLY THE BANK HAS FOUGHT HARD IT MANAGED TO SET THE ADMISSION CRITERIA FOR NATIONS WANTING TO JOIN A SINGLE CURRENCY SO HIGH AS TO BE ALMOST IMPOSSIBLE TO FULFILL IN NUMEROUS SPEECHES TOP BANK OFFICIALS HAVE COMPLAINED THAT MAASTRICHT IS FLAWED AND LOPSIDED MORE NEEDS TO BE DONE TO ENSURE POLITICAL UNION ACCOMPANIES THE ESTABLISHMENT OF A SINGLE CURRENCY THEY SAY MOST RECENTLY BY NOT COMING TO THE RESCUE OF THE EUROPEAN MONETARY SYSTEM IN ITS HOUR OF NEED LAST WEEK THE BUNDESBANK HAS WHETHER DELIBERATELY OR NOT DEALT AN EFFECTIVE MORTAL BLOW TO THE MAASTRICHT TIMETABLE THE EUROPEAN MONETARY SYSTEM THAT HAS NOW BEEN DILUTED WAS TO HAVE BEEN THE BACKBONE OF A MONETARY UNION STARTING IN 1999 AT THE LATEST THAT TIMETABLE LOOKS AT BEST IMPROBABLE NOW APART FROM SOME POLITICIANS FEW IN GERMANY WILL MOURN MOST ORDINARY GERMANS ARE STRONGLY OPPOSED TO GIVING UP THE MARK POLLS SHOW AND ARE FURIOUS AT NOT BEING CONSULTED ABOUT MAASTRICHT IN A REFERENDUM SIMILAR TO THE ONES HELD IN FRANCE DENMARK AND IRELAND NEXT YEAR IS A BUSY ELECTORAL YEAR IN GERMANY WITH NATIONAL ELECTIONS AND A STRING OF REGIONAL ONES MR KOHL FOR ALL HIS PROEUROPEAN RHETORIC IS ANXIOUS TO BE REELECTED AS IT IS HE IS UNPOPULAR AT HOME WIDELY PERCEIVED AS BEING INEFFECTIVE ACCORDING TO DIETER ROTH DIRECTOR OF THE FORSCHUNGSGRUPPE WAHLEN POLLING GROUP IN MANNHEIM THE PRESTIGE OF GERMAN LEADERS IS AT ITS LOWEST SINCE GERMANY'S BIGGEST POSTWAR GOVERNMENT CRISIS IN 1982 THAT LED TO THE COLLAPSE OF HELMUT SCHMIDT'S GOVERNMENT THERE IS A PERCEPTION THAT WE ARE NO LONGER A LITTLE COUNTRY DEALING WITH LITTLE CRISES BUT THAT WE HAVE FAR MORE PROBLEMS THAN WE HAD IN EARLIER RECESSIONS WHEN WE DEALT WITH THEM OURSELVES DR ROTH SAYS IN SUCH A CLIMATE IT SEEMS EUROPE IS IMPORTANT BUT NOT TOP PRIORITY EVEN FOR MR KOHL 9308030100 930803 MARKETING & MEDIA CBS COX ENTERPRISES AGREE TO EXCHANGE TWO RADIO STATIONS NEW YORK CBS INC AND COX ENTERPRISES INC SAID THEY AGREED IN PRINCIPLE TO EXCHANGE RADIO STATIONS IN DALLAS AND IN TAMPA FOR UNDISCLOSED TERMS CBS RADIO WHICH OWNS KTXQFM IN DALLAS WILL ACQUIRE KLRXFM IN DALLAS AND COX BROADCASTING WHICH OWNS WWRMFM AND AND WSUNAM IN TAMPA WILL ACQUIRE WYNFFM FEDERAL REGULATIONS ALLOW RADIO OPERATORS TO OWN TWO FM AND TWO AM STATIONS PER MARKET CBS OWNS 21 RADIO STATIONS PRIVATELY HELD COX ENTERPRISES OWNS 13 RADIO STATIONS 9308030099 930803 UPS TEAMSTERS AGREE TO EXTEND THEIR TALKS UNION LINES UP FUNDS ATLANTA UNITED PARCEL SERVICE OF AMERICA INC AND THE TEAMSTERS UNION AGREED TO EXTEND CONTRACT NEGOTIATIONS INDEFINITELY AS THE TEAMSTERS LINED UP A 50 MILLION LOAN FOR ITS STRIKE FUND IN CASE THE TALKS FAIL THE TWO PARTIES WHICH HAVE BEEN IN CONTRACT DISCUSSIONS SINCE APRIL AGREED TO CONTINUE TALKS BEYOND THE AUG 10 DEADLINE THEY SET TWO WEEKS AGO UNDER THE EXTENSION AGREEMENT EACH SIDE MUST GIVE FIVE DAYS NOTICE IF IT WANTS TO WITHDRAW FROM THE TALKS A UPS SPOKESMAN LAUDED THE EXTENSION AS GOOD NEWS SAYING THAT IT WILL HELP SECURE ITS BUSINESS WITH CUSTOMERS WHO MIGHT TURN TO COMPETITORS AS CONTRACT DEADLINES LOOM THE CLOSELY HELD PACKAGEDELIVERY COMPANY BASED IN ATLANTA HAS BEEN NEGOTIATING A THREEYEAR CONTRACT AFFECTING ITS 165000 DRIVERS PACKAGE SORTERS AND MECHANICS WHO COMPRISE THE LARGEST SINGLE TEAMSTERS' SHOP IN THE NATION THE UNION WOULDN'T COMMENT ON THE EXTENSION WHICH HASN'T BEEN FORMALLY ANNOUNCED YET SEPARATELY THE AFLCIO IS EXPECTED TO APPROVE TODAY A 50 MILLION LOAN TO THE TEAMSTERS' STRIKE FUND TEAMSTERS FUNDING IN RECENT YEARS HAS BEEN HURT BY MEMBERSHIP DECLINES AND AN INCREASE IN BENEFITS TO STRIKERS THE STRIKE FUND TOTALS ABOUT 30 MILLION COMPARED WITH 46 MILLION AT THE END OF 1992 THE STRIKE FUND WOULD BE LARGELY DRAINED BY A ONEWEEK NATIONWIDE STRIKE AGAINST UPS WHICH WOULD COST MORE THAN 30 MILLION UNION LEADERS HAVE SAID THEY WOULD CONSIDER SELECTIVE STRIKES OR A NEGATIVE PUBLICITY CAMPAIGN IF TALKS FAILED 9308030098 930803 ENTERPRISE GOVERNMENT'S LOAN PLAN DRAWS CRITICS BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IS UNCLE SAM AN AVARICIOUS LOAN SHARK BLEEDING THOUSANDS OF SMALL BUSINESSES DRY OR IS THE GOVERNMENT SIMPLY BEING A RESPONSIBLE LENDER BY ENFORCING A LAWFUL CONTRACT WHILE ALSO TRYING TO KEEP THE BUDGET DEFICIT UNDER CONTROL THERE ISN'T MUCH MIDDLE GROUND IN THE DEBATE SWIRLING AROUND A FEDERAL SMALLBUSINESS LOAN PROGRAM THAT HAS MORE THAN 3000 SMALL COMPANIES LOCKED INTO LONGTERM DOUBLEDIGITINTERESTRATE LOANS WITH NO REALISTIC WAY TO REFINANCE SOME MEMBERS OF CONGRESS ARE ARGUING THAT THE SMALL BUSINESSES DESERVE RELIEF EVEN IF TAXPAYERS HAVE TO FOOT THE BILL THE CONTROVERSY WHICH HAS INTENSIFIED AS INTEREST RATES HAVE DROPPED TO 20YEAR LOWS INVOLVES THE SMALL BUSINESS ADMINISTRATION'S NOWDEFUNCT 503 LOAN PROGRAM INTRODUCED IN 1979 AS A WAY OF ENCOURAGING SMALL FIRMS TO EXPAND THEIR FACILITIES AND TO CREATE MORE JOBS THE PROGRAM OFFERED FIXEDRATE LOANS OF 20 TO 25 YEARS AT RATES RANGING FROM 11 TO 157 THE LOANS FINANCED 40 OF AN APPROVED PROJECT'S COST WITH COMMERCIAL LENDERS AND THE SMALL COMPANY ITSELF CONTRIBUTING THE REST FOLLOWING A TIME WHEN THE PRIME RATE HAD HOVERED CLOSE TO 20 THE SBAGUARANTEED LOANS WITH SIGNIFICANTLY LOWER RATES LOOKED LIKE A GOOD DEAL A TOTAL OF 4927 SMALL COMPANIES SIGNED UP AND RECEIVED 503 LOANS TOTALING 992 MILLION ONE OF THEM WAS TRAVERS MAYHEW PRESIDENT OF DAVIS BOAT WORKS INC NEWPORT NEWS VA IN 1983 HE BORROWED 500000 AT ABOUT 13 TO RELOCATE HIS SHIPYARD WHICH HAD BEEN GOBBLED UP BY INTERSTATE HIGHWAY CONSTRUCTION TEN YEARS LATER FALLING RATES PROMPTED 503 BORROWERS TO LOOK INTO REFINANCING THEIR LOANS AND MR MAYHEW AND OTHER COMPANY OWNERS SAY THEY WERE DUMBFOUNDED TO DISCOVER A PREPAYMENT CLAUSE IN THE FINE PRINT THAT IMPOSES A HUGE PENALTY IF THE LOAN IS PAID OFF BEFORE ITS DUE DATE AFTER NINE YEARS OF PAYING DOWN HIS 20YEAR LOAN MR MAYHEW FIGURES HE'D HAVE TO COME UP WITH AT LEAST 522000 TO CLEAR HIS 503 DEBT THAT FIGURE INCLUDES A LOAN BALANCE OF 422000 AND AN ESTIMATED PENALTY OF MORE THAN 100000 IT MAY BE LEGALLY BINDING BUT NONE OF US KNEW THIS WAS THE CASE MR MAYHEW SAYS REFERRING TO THE MANY SBA 503 BORROWERS NOW REELING FROM INTERESTRATE SHOCK THERE IS NOTHING REMOTELY COMPARABLE TO THE 503 PREPAYMENT PROVISION IN THE COMMERCIAL BANKING INDUSTRY ADDED 26 HOUSE MEMBERS IN AN APRIL LETTER TO BUDGET DIRECTOR LEON PANETTA AND TREASURY SECRETARY LLOYD BENTSEN SEEKING HELP FOR THE 503 LOAN HOLDERS SMALLBUSINESS OWNERS WHO SIGNED UP FOR 503 LOANS ARE PLEADING FOR RELIEF DORIS JOHNSON PRESIDENT OF VANCOUVER BOLT & SUPPLY INC VANCOUVER WASH SAYS THE GOVERNMENT IS ACTING LIKE A LOAN SHARK SHE HAS GATHERED MORE THAN 2000 AFFECTED FIRMS INTO A COALITION TO FIGHT FOR RETROACTIVE CHANGES IN THE LOAN REQUIREMENTS SHE SAYS IT WOULD TAKE MORE THAN 200000 TO PAY OFF THE 161500 BALANCE ON THE 177000 THAT VANCOUVER BOLT BORROWED FROM THE 503 PROGRAM IN 1984 REP RONALD MACHTLEY ONE OF A NUMBER OF SYMPATHETIC CONGRESS MEMBERS SAYS THE TERMS OF THE LOANS MAY VIOLATE STATE USURY LAWS THE RHODE ISLAND REPUBLICAN HAS INTRODUCED A BILL THAT WOULD SHARPLY REDUCE THE PAYOFF PENALTIES FOR 503 BORROWERS REP MACHTLEY ALSO SUGGESTS 503 BORROWERS CONSIDER A CLASSACTION SUIT BUT THE CLINTON ADMINISTRATION IS RESISTING MR PANETTA SAYS IT WOULD COST THE GOVERNMENT ROUGHLY 70 MILLION IF 503 LOAN HOLDERS WERE ALLOWED TO PREPAY WITHOUT PENALTIES THE FIGURE REPRESENTS THE DIFFERENCE BETWEEN WHAT THE TREASURY DEPARTMENT WOULD COLLECT ON THE LOANS AND THE AMOUNT IT HAS TO PAY TO THE HOLDERS OF HIGH INTEREST RATES BONDS SOLD TO FINANCE THE SBA LOANS PRESSURE TO WHITTLE DOWN THE BUDGET DEFICIT MAKES EVEN RELATIVELY SMALL UNBUDGETED SPENDING PROPOSALS DIFFICULT TO SELL HUGE UNEXPECTED COSTS RESULTING FROM THE MIDWESTERN FLOODS CAN ONLY COMPOUND THE 503 LOAN HOLDERS' DIFFICULTY IN SEEKING RELIEF PRESIDENT REAGAN POCKET VETOED A 1987 ATTEMPT BY CONGRESS TO SOFTEN THE PREPAYMENT HIT ON 503 BORROWERS IN THEIR LETTER TO MR PANETTA AND MR BENTSEN THE HOUSE MEMBERS ARGUED THAT HANDCUFFING THE ABILITY OF SEVERAL THOUSAND SMALL FIRMS TO EXPAND RUNS COUNTER TO THE ADMINISTRATION'S GOAL OF ENCOURAGING SMALL BUSINESSES TO CREATE JOBS THE LETTER SAYS HIGHER TAXES FROM REJUVENATED COMPANIES WOULD MORE THAN OFFSET ANY REVENUE LOSS TO THE TREASURY SMALLCOMPANY OWNERS CAUGHT IN THE INTERESTRATE VISE CONTEND THE PREPAYMENT CLAUSE WAS SO OBSCURE THAT LAWYER AFTER LAWYER FAILED TO SPOT IT IN FACT THERE IS NOTHING IN THE BASIC 503 LOAN DOCUMENT ABOUT A PREPAYMENT PENALTY BUT A PROMISSORY NOTE ATTACHED TO THE LOAN DOES RAISE THE ISSUE SAYING THAT THE FEE REQUIRED TO PAY OFF A 503 LOAN IN ADVANCE MUST COVER THE COSTS OF PAYING OFF A DEBENTURE ISSUED TO FINANCE THE SBA LOAN HARRY WHITTLESEY PRESIDENT OF WHITCOM INC ISLANDIA NY A TELEPHONESYSTEMS FIRM SAYS HE IS UNHAPPY THAT HIS VERY HIGHLY RESPECTED ATTORNEY DIDN'T CATCH THE POTENTIAL TRAP BUT HE ADDS I READ CONTRACTS ALL DAY LONG I CAN UNDERSTAND LEGAL GOBBLEDYGOOK AND THIS ONE IS BEYOND REASON ATLANTABASED INVESTMENT BANKER ALLEN TESCHE SAYS HE BORROWED 500000 IN 503 FUNDS TO FINANCE A LEVERAGED BUYOUT OF A STEELPRODUCTS MANUFACTURER PAID 70000 A YEAR FOR NINE YEARS AND ASKED THE SBA FOR A PAYOFF FIGURE SO HE COULD REFINANCE THEY SAID WHAT YOU REALLY OWE IS 545000' OR SOME FIGURE LIKE THAT I SAID WAIT A MINUTE' HE RECALLS IN ADDITION TO THE OBSCURE WORDING THE PROBLEM FOR THE 503 BORROWERS LIES IN THE FACT THAT THE TREASURY NOT THE SBA IS THE ENFORCER THE BONDS SOLD TO FINANCE THE SBA LOANS ARE OWNED BY THE TREASURY'S FEDERAL FINANCING BANK WHOSE RULES STATE THAT BORROWERS MUST PAY THE EQUIVALENT OF THE INTERESTRATE YIELD TO THE LOAN'S MATURITY IF THEY PREPAY UNDER THIS RULE BORROWERS GET A DISCOUNT ON THEIR PREPAYMENT TOTAL IF PREVAILING RATES ARE HIGHER THAN THEIR LOAN RATE IF RATES DECLINE HOWEVER THEY PAY A PENALTY THE SBA REMEDIED THE CONFUSION IN ITS 504 LOANS WHICH REPLACED THE 503 PROGRAM IN 1986 THE UNDERLYING 504 BONDS ARE OWNED BY PRIVATE INVESTORS NOT THE TREASURY AND THERE'S A CLEARLY STATED PREPAYMENT CLAUSE WITH A PENALTY SCHEDULE ON A SLIDING SCALE FOR THE FIRST HALF OF THE LOAN ONLY THE CURRENT 504 RATE ON 10YEAR LOANS IS 55 AND ON 20YEAR LOANS 63 THE SBA SAYS 14 OF THE 503 BORROWERS HAVE PAID OFF THEIR LOANS BUT THAT DOESN'T HELP 503 LOAN HOLDERS SUCH AS MR MAYHEW THE VIRGINIA SHIPBUILDER TO REALIZE MY RETIREMENT I'VE GOT TO SELL THE BUSINESS OR PASS IT DOWN HE SAYS NOBODY WANTS TO BUY THE COMPANY AND ASSUME A 13 LOAN 9308030097 930803 BUSINESS BRIEF CSX CORP UNION RATIFIES AGREEMENT TO TRIM RAIL LINE'S CREWS CSX TRANSPORTATION INC SAID MEMBERS OF THE UNITED TRANSPORTATION UNION RATIFIED AN AGREEMENT TO REDUCE CREW SIZE ON THE FORMER CHESAPEAKE & OHIO RAIL LINES THE UNIT OF CSX CORP A RAILROAD AND SHIPPING HOLDING COMPANY BASED IN RICHMOND VA SAID THE AGREEMENT WILL ELIMINATE BRAKEMEN POSITIONS AND REDUCE FREIGHTTRAIN CREWS TO A CONDUCTOR AND A LOCOMOTIVE ENGINEER EMPLOYEES WILL BE OFFERED A VOLUNTARY SEPARATION PACKAGE VALUED AT 80000 THE COMPANY SAID ADDING THAT THE AGREEMENT WILL SUBSTANTIALLY REDUCE COSTS DECLINING TO ELABORATE WITH THE RATIFICATION CSX SAID THE CONVERSION OF ITS RAIL SYSTEM TO REDUCED FREIGHTTRAIN CREWS IS NEARLY COMPLETE THE FORMER C&O LINES HAVE 1025 CONDUCTORS AND BRAKEMEN OR ABOUT 10 OF CSX'S CREW EMPLOYEES THREE SMALL SECTIONS OF THE RAIL SYSTEM WITH A TOTAL OF 230 CREW EMPLOYEES ARE NOT YET COVERED BY THE AGREEMENTS CSX SAID 9308030096 930803 EUROPE'S CURRENCY CRISIS US COMPANIES MOVE TO LIMIT CURRENCY RISK A WALL STREET JOURNAL NEWS ROUNDUP THE EUROPEAN CURRENCY CRISIS IS CHANGING THE WAY SOME US COMPANIES DO BUSINESS ON THE CONTINENT THE CONTINUING TURMOIL IN EUROPE'S EXCHANGE RATE MECHANISM COMBINED WITH THE DECISION EARLY MONDAY BY EUROPEAN COMMUNITY NATIONS TO LET THEIR CURRENCIES FLUCTUATE MORE WIDELY IS RAISING THE FINANCIAL RISKS AND CREATING INCREASED UNCERTAINTY FOR US COMPANIES THAT HAVE EUROPEAN OPERATIONS SOME COMPANIES SAY THEY EXPECT TO BE INSULATED FROM THE TUMULT BY CURRENCY HEDGING AND OTHER STRATEGIES ALREADY IN PLACE BUT OTHERS ARE TAKING ADDITIONAL STEPS TO PROTECT THEMSELVES THIS OVERALL IS NOT GOOD NEWS FOR GILLETTE OR ANY COMPANIES DOING BUSINESS IN EUROPE GIAN CAMUZZI GILLETTE CO'S SENIOR ASSISTANT TREASURER SAID OF THE CURRENCY CRISIS IT MAY BE BETTER NEWS IN THE LONG RUN JOHN BARTER CHIEF FINANCIAL OFFICER OF ALLIEDSIGNAL INC A MORRISTOWN NJ TECHNOLOGY COMPANY WITH AUTOMOTIVE AEROSPACE AND ENGINEEREDMATERIAL BUSINESSES SAID HE EXPECTED EUROPE'S CURRENCY PLAN TO RESTIMULATE THE EUROPEAN ECONOMY BY ALLOWING MANY COUNTRIES TO LOWER THEIR INTEREST RATES RATHER THAN HAVING TO KEEP RATES HIGH TO SUPPORT WEAKER CURRENCIES MOVING PRODUCTION WITHIN EUROPE CAN ALSO PAY OFF ROB BAZELAAR MANAGING DIRECTOR OF PEERLESS MANUFACTURING CO'S PEERLESS EUROPE OPERATIONS SAID THE COMPANY TWO YEARS AGO ADOPTED A SUBCONTRACTING SYSTEM FOR ITS EUROPEAN MANUFACTURING AND WORK CAN BE SHIFTED AROUND THE CONTINENT AS NEEDED I HAVE THE ADVANTAGE OF NOT BEING STUCK IN ONE COUNTRY MR BAZELAAR SAID I CAN HAVE THINGS MANUFACTURED ANYWHERE I WANT TO PEERLESS A DALLASBASED COMPANY THAT DESIGNS AND MANUFACTURES FILTERS AND SEPARATORS HAS A GOOD DEAL OF SUBCONTRACTING IN FRANCE AND GERMANY AND MR BAZELAAR EXPECTS THE WORK ASSIGNED TO FRENCH SUBCONTRACTORS TO INCREASE GILLETTE HAS MANUFACTURING FACILITIES IN SEVERAL EUROPEAN COUNTRIES BUT EVEN SO SAID THE COMPANY'S MR CAMUZZI ITS RAZORBLADE BUSINESS IN FRANCE WILL BE HURT BECAUSE IT SELLS GERMANMADE BLADES THERE THE APPRECIATION OF THE DEUTSCHE MARK AGAINST THE FRANC LEAVES THE BOSTONBASED COMPANY WITH THE CHOICE OF RAISING PRICES OR CUTTING PROFIT MARGINS ON THE BLADES IT SELLS IN FRANCE MR CAMUZZI SAID HE EXPECTS GILLETTE TO INCREASE PRICES IN FRANCE THE BOSTONBASED COMPANY DEFINITELY WILL ADJUST ITS PRICES AROUND EUROPE MR CAMUZZI SAID NOT ONLY TO MAINTAIN PROFITS BUT ALSO TO DETER PRIVATE ENTERPRISES FROM BUYING UP THE COMPANY'S PRODUCTS IN ONE COUNTRY TO SELL IN OTHERS OTHERWISE WE'LL HAVE A FLOW OF PRODUCTS COMING OUT OF FRANCE AND GOING INTO GERMANY HE SAID GILLETTE ALSO PLANS TO DO MORE CURRENCY HEDGING MR CAMUZZI SAID IN HEDGING COMPANIES PROTECT THEMSELVES AGAINST CURRENCY FLUCTUATIONS IN ACCOUNTS PAYABLE AND RECEIVABLE BY ESTABLISHING POSITIONS IN THE CURRENCIES IN QUESTION IF YOU HAVE A RECEIVABLE IN MARKS AND A PAYABLE IN FRANCS WE WILL ELIMINATE THE POSITION RATHER THAN CARRY IT ON THE BOOKS MR CAMUZZI SAID WALT DISNEY CO HEDGES SUBSTANTIALLY MORE THAN HALF OF ITS FOREIGN INCOME AGAINST CURRENCY FLUCTUATIONS SAID RICHARD D NANULA SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND DOESN'T EXPECT TO CHANGE THAT STRATEGY THE COMPANY SEES A POSSIBLE HAPPY ENDING TO THE CURRENCY CRISIS IF THE FRANC WERE TO WEAKEN AS THE LATEST CURRENCY AGREEMENT ALLOWS IT WILL MAKE FRANCE AND EURO DISNEY A CHEAPER VISIT FROM SURROUNDING COUNTRIES MR NANULA SAID MOREOVER IF THE FRENCH DON'T HAVE TO WORRY ABOUT PROTECTING THEIR CURRENCY THEY CAN LOWER INTEREST RATES AND LOWERING INTEREST RATES POTENTIALLY WILL PUT PEOPLE BACK TO WORK IN FRANCE THAT MAY TRANSLATE INTO MORE VISITS TO OUR THEME PARK 9308030095 930803 BUSINESS BRIEF WILLIAMS COS NATURALGAS SUBSIDIARY FILES TO ADD 25 MILES OF PIPELINE A WILLIAMS COS TULSA OKLA UNIT FILED WITH THE FEDERAL ENERGY REGULATORY COMMISSION TO EXPAND ITS NATURALGAS TRANSMISSION SYSTEM THE UNIT SALT LAKE CITYBASED NORTHWEST PIPELINE CORP SAID THE PROPOSED PROJECT ALONG THE COLUMBIA RIVER GORGE FROM STANFIELD ORE TO PORTLAND ORE WOULD COST 45 MILLION AND WOULD BOOST CAPACITY 4 OR 102 BILLION BRITISH THERMAL UNITS A DAY THE EXPANSION WOULD ADD 25 MILES OF PIPELINE IN OREGON AND WASHINGTON INCREASE COMPRESSION IN WASHINGTON MODIFY SIX METER STATIONS AND BUILD ONE STATION NORTHWEST'S SYSTEM PROVIDES NATURALGAS SERVICE TO EIGHT STATES IF IT RECEIVES FERC APPROVAL NORTHWEST SAID IT WOULD BEGIN CONSTRUCTION IN LATE 1994 AND COMPLETE THE EXPANSION BY LATE 1995 9308030094 930803 FLEXIBLE OPTIONS BASED ON SMALLSTOCK INDEX TO TRADE IN CHICAGO CHICAGO THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT WILL ALLOW BIG INVESTORS TO TAILOR THEIR OWN OPTIONS CONTRACTS BASED ON AN INDEX OF SMALLCAPITALIZATION STOCKS THE CBOE NOW TRADES SOCALLED FLEXIBLE OPTIONS BASED ON THE STANDARD & POOR'S INDEXES OF 100 AND 500 LARGE COMPANIES' STOCKS TO CAPITALIZE ON THE POPULARITY OF SMALLCAP STOCKS THE CBOE ON FRIDAY WILL BEGIN TRADING FLEXIBLE OPTIONS ON THE RUSSELL 2000 INDEX OF SMALL STOCKS UNLIKE CONVENTIONAL STOCKINDEX OPTIONS CONTRACTS FLEXIBLE OPTIONS ALLOW BIG INVESTORS SUCH AS PENSION FUNDS TO CRAFT THEIR OWN TERMS FOR THE CONTRACTS THEY CAN CHOOSE THE LENGTH OF TIME STRIKE PRICE EXERCISE STYLE AND EXPIRATION VALUE OF THE EXCHANGE'S NEW OPTIONS 9308030093 930803 BUSINESS BRIEF MERCEDESBENZ AG BASE PRICE OF 1994 SL320 INCREASES BY 09 TO 85200 MERCEDESBENZ AG SAID THE BASE PRICE OF ITS 1994 SIXCYLINDER SL320 IS 85200 UP 09 OR 800 FROM THE 1993 MODEL YEAR PRICE THE 1994 MODEL HAS AN IMPROVED FUEL ECONOMY OVER ITS PREDECESSOR AND WON'T CARRY THE GAS GUZZLER TAX OF 1000 MERCEDES SAID THE TAX REQUIRES BUYERS OF CARS WHOSE FUEL CONSUMPTION FALLS BELOW THE MINIMUM 225 MILES A GALLON TO PAY A TAX OF AT LEAST 1000 SEPARATELY MERCEDES SAID IT DROPPED LETTERS DESIGNATING THE BODY STYLE AND ENGINE TYPE FROM THE NAME OF ITS VEHICLES MERCEDES SAID THE OLD SYSTEM USED SINCE THE 1920S BECAME COMPLEX AS THE MERCEDES LINE EVOLVED OVER THE YEARS 9308030092 930803 TECHNOLOGY BRIEF CARTERWALLACE INC FDA APPROVES FELBAMATE EPILEPTICSEIZURE TREATMENT THE FOOD AND DRUG ADMINISTRATION APPROVED THE USE OF FELBAMATE FOR CONTROLLING CERTAIN EPILEPTIC SEIZURES IN ADULTS AND A RARE FORM OF THE DISEASE IN CHILDREN FELBAMATE PRODUCED BY CARTERWALLACE INC NEW YORK IS THE FIRST NEW DRUG APPROVED IN MORE THAN 10 YEARS TO TREAT THE DISORDER WHICH IS CHARACTERIZED BY SEIZURES AND AFFECTS ABOUT TWO MILLION PEOPLE IN THE US THE AGENCY SAID THE SEIZURES OCCUR WHEN NERVES IN THE BRAIN FIRE SPONTANEOUSLY CAUSING SYMPTOMS THAT RANGE FROM THE SHAKING OF AN ARM TO THE LOSS OF CONSCIOUSNESS AND GENERALIZED SPASMS IT WILL BE SOLD UNDER THE TRADE NAME FELBATOL FOR ADULTS FELBAMATE DECREASES THE FREQUENCY OF PARTIAL SEIZURES THAT START IN A LOCALIZED PART OF THE BRAIN INCLUDING THOSE THAT PROGRESS TO GENERALIZED SEIZURES THE DRUG IS ALSO EFFECTIVE WHEN ADDED TO OTHER DRUGS FOR TREATING CHILDREN TWO YEARS AND OLDER WHO HAVE LENNOXGASTAUT SYNDROME 9308030091 930803 WORKPLACE TRUCK CABS TURN INTO MOBILE OFFICES AS DRIVERS TAKE ON WHITECOLLAR TASKS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL ORLANDO FLA EVERY DAY HERMAN WILLOUGHBY RUNS 10 TEST COPIES ON EACH PHOTOCOPIER HE ASSEMBLES TO MAKE SURE THE TONE IS JUST DARK ENOUGH XEROX CORP TRUSTED HIM TO SET UP ONLY ONE OR TWO OF ITS QUARTERTON MACHINES WHEN HE STARTED NINE YEARS AGO NOW MR WILLOUGHBY SETS UP DOZENS OF MODELS AND OFTEN TRAINS OTHERS HOW TO USE THEM FOR LIGHT READING AFTER WORK HE BREEZES THROUGH 100PAGE USER MANUALS TO CHARM CUSTOMERS HE SWEEPS UP SOOTY PILES OF DEVELOPER POWDER YET MR WILLOUGHBY WHO GUZZLES MOUNTAIN DEW FROM A PINK 44OUNCE COOLER WHEN HE GETS TO WORK AT 4 AM ISN'T YOUR AVERAGE OFFICE WORKER HE IS A TRUCK DRIVER FOR RYDER SYSTEM INC WHICH HAS A CONTRACT WITH XEROX TO DELIVER AND INSTALL THAT COMPANY'S COPYING MACHINES THESE DAYS SOME TRUCKERS ARE MORE INCLINED TO SPORT WHITE COLLARS THAN TANK TOPS ONCE AND STILL LUMPED AS REDNECKS AND HIGHSCHOOL DROPOUTS THEY ARE NOW FLUENT WITH COMPUTERS SATELLITES AND FAX MACHINES ALL OF WHICH CAN BE FOUND IN THE CABS OF THEIR 18WHEELERS THEY ARE BEING ASKED TO TAKE ON TASKS NEVER DREAMED OF FAXING SALES INVOICES HOUNDING CUSTOMERS WHO ARE SLOW TO PAY BILLS AND TRAINING OFFICE WORKERS HOW TO USE THE LATEST HIGHTECH OFFICE TOY THE CHANGE REFLECTS THE CUTTHROAT COMPETITION WITHIN THE INDUSTRY A DRIVER AFTER ALL IS OFTEN THE SINGLE FACETOFACE CONTACT THAT MANY COMPANIES HAVE WITH THEIR CUSTOMERS THE IMAGE THAT HE OR SHE PRESENTS HAS BECOME AN IMPORTANT SELLING POINT AS HAS THE ABILITY TO PERFORM LOGISTICAL TASKS SUCH AS WAREHOUSING INVENTORY THAT MORE CUSTOMERS HAVE COME TO EXPECT ALL OF WHICH MEANS THAT MR WILLOUGHBY 40 YEARS OLD MUST BE AS WELLVERSED IN XEROX DOCUMENT FEEDERS AS HE IS IN FUEL AND HYDRAULIC LIFTS FOR HIS 26FOOT TRUCK ON AN AVERAGE DAY HE DRIVES A 200MILE ROUTE TO DROP OFF A DOZEN XEROX MACHINES AT VARIOUS COMPANIES IN CENTRAL FLORIDA BUT THAT'S JUST THE HALF OF IT HE THEN DISCONNECTS CIRCUITBOARD WIRES FIDDLES WITH TONER CARTRIDGES AND SHRINKS COPIES DOWN TO 64 FOR A TEST RUN WHEN SHOWING CUSTOMERS HOW TO USE THEIR COPIERS HE POINTS OUT LITTLEKNOWN FACTS SUCH AS HOW TO GET PAGES PRINTED ON BOTH SIDES JUST PRESS A BUTTON AND IT WILL DO IT AUTOMATICALLY A LOT OF PEOPLE AREN'T ACCLIMATED TO HAVING A DELIVERY PERSON SHOW THEM HOW TO USE THER COPIERS HE SAYS MUNCHING ON CELERY STICKS AND LISTENING TO GOSPEL RHYTHMANDBLUES CASSETTES WHILE DRIVING YOU TRY TO HANDLE IT AS CALMLY AND DIPLOMATICALLY AS POSSIBLE MR WILLOUGHBY WHO USED TO PUMP GAS AT A TRUCK STOP NO LONGER TROUBLES HIMSELF WITH WHAT HE CALLS THE TECHNICAL ASPECTS OF THE TRUCK LIKE CHANGING THE OIL HE DOES HOWEVER POLISH OFF THE NEW XEROX MACHINES WITH A BLUE RAG TO GET RID OF LINGERING FINGERPRINTS IF YOU WANT A NEW COPIER WOULD YOU WANT SOME DELIVERY MAN'S FINGERPRINTS ALL OVER IT I WOULDN'T HE FIGURES INDEED DRIVERS TODAY ARE EXPECTED TO BE POLISHED THEMSELVES MR COLEMAN GIVES HIS TRUCKERS BUSINESS CARDS MR FAULS CALLS HIS DRIVERS SERVICE ASSOCIATES AND GIVES THEM AWARDS LIKE DOWN JACKETS FOR NEATNESS MR WILLOUGHBY IS EXPECTED TO CALM IRATE CUSTOMERS WHO HAVE HAD PROBLEMS WITH OLD XEROX MACHINES IT'S A CHALLENGE TO HANDLE THAT PERSON AND LEAVE THEM WITH A GOOD IMPRESSION HE ADMITS IF I'M DISCOURTEOUS THE CUSTOMER WILL TAKE IT OUT ON XEROX AND NOT BUY XEROX EQUIPMENT AFTER A PARTICULARLY HEATED EXCHANGE HE HAS BEEN KNOWN TO KICK HIS TRUCK'S TIRES HE CONFESSES CERTAINLY DECORUM IS A MUST FOR PEOPLE WHO ARE INCREASINGLY RELIED ON TO RACK UP SALES AT UNITED PARCEL SERVICE OF AMERICA INC DRIVERS CARRY A NEW 96PAGE CUSTOMERSERVICE GUIDE IN THEIR POCKETS WITH TIPS ON FOR EXAMPLE WHAT DELIVERY SERVICES ARE GOOD FOR TRAVELING SALESMEN DRIVERS ALSO KEEP A LOOK OUT FOR THEIR COMPETITORS' PACKAGES WHEN THEY SPOT A STACK OF FEDERAL EXPRESS CORP LETTERS THEY ARE SUPPOSED TO PITCH THE CUSTOMER ON USING UPS INSTEAD WHEN CUSTOMERS ASKED YOU QUESTIONS IN THE OLD DAYS YOU GAVE A BRIEF BUSINESSLIKE ANSWER AND MOVED ON SAYS DANIEL PREBLE CORPORATE TRAINING MANAGER NOWADAYS DRIVERS ARE A WEALTH OF INFORMATION BRUCE COLRAVY A UPS DRIVER IN CHAMPAGNE ILL CONSIDERS HIMSELF A TROUBLESHOOTER FOR ONE CUSTOMER WHO S SIZABLE AMOUNTS OF VITAMINS AND GRAINS FOR HORSES HE FOUND A CHEAPER MODE OF DELIVERY VIA UPS AND GRABBED THE BUSINESS FROM FEDERAL EXPRESS HE ANSWERS 15 QUESTIONS A DAY EXPLAINING HIS COMPANY'S SERVICES COMPARED WITH JUST ONE A DAY 10 YEARS AGO HE ALSO SCOUTS OUT NEW CUSTOMERS WHEN A MATERNITY SHOP WAS GETTING READY TO OPEN ON HIS ROUTE HE POKED HIS HEAD IN THE DOOR TO OFFER HIS SERVICES THIS NEW BREED OF TRUCKER CAN BE WELLSTUDIED MORE THAN A THIRD OF DRIVERS HAVE SOME COLLEGE EDUCATION OR DEGREES ACCORDING TO A SURVEY OF 3910 TRUCKERS BY THE UPPER GREAT PLAINS TRANSPORTATION INSTITUTE AT NORTH DAKOTA STATE UNIVERSITY HALF OF THE 70000 DRIVERS AT UPS HAVE BEEN TO COLLEGE THE COMPANY'S 18WHEELER DRIVERS LISTEN TO HOURLONG EDUCATIONAL CASSETTES ON THE ROAD ABOUT MARKET SHARE FEDERAL EXPRESS COMPETITION THE HISTORY OF TRUCKING AND RUNNING OVER DEER ADVICE INCLUDES DON'T HELP YOURSELF TO ROAD KILL IT'S NOT ALWAYS LEGAL SOME DRIVERS ARE ALSO GOING HIGHTECH TO HELP THEIR COMPANIES SPEED UP SERVICE TERRY CLINE TAPS INTO A LAPTOP COMPUTER KEYBOARD WHILE DRIVING HIS 18WHEELER SENDING OUT ENCODED MESSAGES TO LET HIS COMPANY KNOW THAT HE HAS DROPPED OFF 11760 PAIRS OF ASICS SPORTS SHOES AND NEEDS ANOTHER LOAD OF COURSE THE 5000 SATELLITE AFFIXED TO HIS TRUCK CAB HAS ALREADY ALERTED HIS EMPLOYER US EXPRESS INC IN CHATTANOOGA TENN OF MR CLINE'S EXACT WHEREABOUTS IN WEST ATLANTA SO THEY CAN SPEED HIM OFF TO THE NEAREST PICKUP MY TYPING IS NOT REAL GOOD BUT THE COMPUTER IS A REAL TIMESAVER SAYS MR CLINE WHO ORDERS BROILED CHICKEN AND TOSSED SALAD WHENEVER HE HITS A TRUCK STOP IN MY WILDEST DREAMS I NEVER THOUGHT I'D BE OPERATING SOMETHING LIKE THAT EQUALLY COMPUTERIZED ARE THE DRIVERS AT MS CARRIERS INC IN MEMPHIS TENN WHO FAX BILLS FROM THEIR TRUCK CABS AT ROADWAY SERVICES INC IN AKRON OHIO UPS AND FEDERAL EXPRESS DRIVERS USE LASER SCANNERS TO TRANSMIT PACKAGE BAR CODES INTO A CENTRAL COMPUTER ALL THIS MOBILE WIZARDRY HAS LED TO SOME CONFUSION ABOUT DRIVERS' ROLES COMPANIES ARE A BIT CONFUSED AS TO WHERE TO SEND MR WILLOUGHBY YOU'LL WALK INTO THE FRONT OFFICE AND THE FIRST THING THEY'LL TELL YOU IS TO GO AROUND BACK HE SAYS YOU GET THERE AND THEY'LL TELL YOU TO GO AROUND FRONT BUT BY AND LARGE THE NEW ROLE AMOUNTS TO A BIT MORE CACHET FOR TRUCKERS PEOPLE RESPECT YOU MORE AND DON'T LOOK AT YOU DOWN LOW LIKE THEY USED TO MR CLINE SAYS WE DO THE SAME THING BASICALLY THAT MOST PEOPLE IN OFFICES DO EXCEPT WE'RE IN TRUCKS 9308030090 930803 HEARD ON THE STREET CONTINENTAL AIRLINES SHARES TAKE FLIGHT AGAIN BUT A THIN FLOAT COULD MAKE THEM VOLATILE BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AFTER YEARS OF DISASTROUS DECLINE AND A ROUGH LANDING IN BANKRUPTCY COURT SHARES OF CONTINENTAL AIRLINES ARE BACK ADMITTEDLY THIS ISN'T THE FIRST STOCK YOU'D THINK OF AS A WAY TO PROFIT FROM A HOPEDFOR TURNAROUND IN THE AIRLINE INDUSTRY MOST INVESTORS LONG AGO SOLD THEIR OLD CONTINENTAL AIRLINES HOLDINGS INC SHARES WHICH PLUMMETED FROM A HIGH OF 51 1/2 IN 1987 TO ZERO BY THE TIME OF THE COMPANY'S BANKRUPTCY REORGANIZATION IN APRIL AS THE LAWYERS SAY THESE SHARES WERE CANCELED IN THE REORGANIZATION BUT NOW WITH THE AIRLINE EMERGING FROM BANKRUPTCY PROCEEDINGS WITH LOWER LABOR COSTS AND HALF THE DEBT THAT LANDED IT IN CHAPTER 11 SHARES OF THE NEW CONTINENTAL AIRLINES ARE NEARLY BACK IN THE AIR THE CLASS A AND CLASS B SHARES BEGAN TRADING ON A WHENISSUED BASIS LAST MONTH ON THE NEW YORK STOCK EXCHANGE AND HAVE RISEN ABOUT 10 THE CLASS A SHARES WERE QUOTED AT 29 YESTERDAY AND THE CLASS B SHARES WERE AT 28 1/2 I ONCE SAID THERE'S NOTHING WRONG WITH CONTINENTAL THAT BETTER MANAGEMENT AND A GOOD BALANCE SHEET WOULDN'T HELP AND NOW THEY'VE GOT THAT SAYS KEVIN MURPHY AN AIRLINE ANALYST WITH MORGAN STANLEY HE HAS RATED CONTINENTAL A HOLD PENDING MORE RESEARCH AFTER WHICH I MIGHT EVEN RECOMMEND THEM TO OUR CLIENTS MANY SHAREHOLDERS IN THE NEW CONTINENTAL HAD LITTLE CHOICE BUT TO OWN THE STOCK IN THE REORGANIZATION ROBERT BASS'S KEYSTONE HOLDINGS AND RYDER SYSTEM CREDITORS OF THE OLD CONTINENTAL GOT PENNIES ON THE DOLLAR AND EQUITY IN THE NEW COMPANY FOR NOW THESE CREDITORS SAY THEY'RE HAPPY WITH THE NEW SHARES WE EXPECT IT TO BE A FAIRLY STRONG MOVER ON THE UP SIDE SAYS DON KELLER SENIOR PORTFOLIO MANAGER FOR KEYSTONE WHO PRAISES CONTINENTAL'S CURRENT MANAGEMENT SIMILARLY MARSHALL B TAYLOR PRESIDENT OF RYDER'S AIRLINESERVICES DIVISION SAYS HE PLANS TO KEEP HIS CONTINENTAL SHARES WE THINK IT'S AN EXCELLENT INVESTMENT IF THE AIRLINE INDUSTRY RECOVERY EVER ARRIVES CONTINENTAL SHARES WOULD BENEFIT SOME SAY LOWER COSTS AND AN IMPROVED SERVICE IMAGE SHOULD ENSURE THAT CONTINENTAL PARTICIPATES FULLY IN THE DOMESTIC PROFIT RECOVERY WE ENVISION FOR THE INDUSTRY OVER THE NEXT 18 TO 24 MONTHS SAYS SAM BUTTRICK OF KIDDER PEABODY INDEED THE INDUSTRY HAS RAMMED THROUGH A 5 FARE INCREASE AND CONTINENTAL HAS AGREED WITH AIR FRANCE TO COORDINATE SCHEDULES AND SELL SEATS ON EACH OTHER'S FLIGHTS GIVING THE HOUSTONBASED CARRIER MORE ACCESS TO EUROPE THIS ISN'T A STOCK FOR THE FAINTHEARTED THOUGH CONTINENTAL HAS ONLY 174 MILLION SHARES OUTSTANDING AND THERE IS A MEAGER FLOAT OF ONLY 743 MILLION SHARES BECAUSE SHARES HELD BY AIR PARTNERS LP AND AIR CANADA THE INVESTMENT PARTNERS THAT BOUGHT 55 OF THE COMPANY THIS YEAR AREN'T TRADABLE FOR SEVERAL YEARS SALOMON BROTHERS ANALYST JULIUS MALDUTIS WARNS THAT THE THIN FLOAT COULD MAKE THE STOCK VOLATILE HE RATES CONTINENTAL SHARES A HOLD BECAUSE OF EXPECTED LOSSES THIS YEAR AND UNCERTAINTY ABOUT NEXT YEAR OTHER ANALYSTS NOTE THAT POSTBANKRUPTCY STOCKS TYPICALLY HIT A DOWNDRAFT ONCE THEY ARE ACTIVELY TRADED AS CREDITORS WHO DON'T WANT TO HOLD THE STOCK GET OUT THERE COULD BE OTHER TURBULENCE AHEAD CONTINENTAL'S LOW LABOR COSTS MAY BE FLEETING GIVEN THAT ITS PILOTS VOTED LAST MONTH TO AFFILIATE WITH AN INHOUSE UNION THEIR FIRST PROUNION VOTE SINCE FORMER CONTINENTAL CHIEF FRANK LORENZO ABROGATED THE AIRLINE'S UNION CONTRACTS IN THE CARRIER'S FIRST BANKRUPTCY IN 1983 AND YEARS AFTER IT ALIENATED PASSENGERS WITH A MESSY 1987 MERGER WITH PEOPLE EXPRESS AND NEW YORK AIR CONTINENTAL STILL FACES WHAT IT CALLS A PREFERENCE DIFFERENTIAL MEANING THAT IT HAS TO WORK HARDER THAN RIVALS TO ATTRACT PASSENGERS CONTINENTAL'S PROFIT PROJECTIONS ARE AGGRESSIVE SOME ANALYSTS ADD BEFORE EMERGING FROM BANKRUPTCY COURT CONTINENTAL FORECAST A 129 MILLION LOSS FOR 1993 THE COMPANY SAYS THAT ESTIMATE IS OUTDATED BUT IT WON'T GIVE A NEW ONE SALOMON'S MR MALDUTIS ESTIMATES AN OPERATING PROFIT OF 49 MILLION THIS YEAR THAT WOULD BE THE CARRIER'S FIRST OPERATING PROFIT SINCE 1986 BUT THOSE NUMBERS DON'T NECESSARILY REFLECT THIS SUMMER'S FARE CUTS WHICH CONTINENTAL CHIEF EXECUTIVE OFFICER ROBERT FERGUSON LAST MONTH SAID WERE HAVING A NEGATIVE IMPACT ON OUR ABILITY TO MAKE MONEY KEYSTONE'S MR KELLER ARGUES THAT CONTINENTAL COMPARES FAVORABLY WITH THE DEBTLADEN LARGER CARRIERS AMR'S AMERICAN AIRLINES UAL'S UNITED AND DELTA AIR LINES BUT HE DOES ACKNOWLEDGE SOME WISTFULNESS I'D LIKE IT BETTER IF WE NEVER GOT THE STOCK IN THE FIRST PLACE 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 9308030089 930803 TECHNOLOGY HOFFMANNLA ROCHE HALTS AIDS DRUG'S DEVELOPMENT NUTLEY NJ HOFFMANNLA ROCHE INC AN AFFILIATE OF THE SWITZERLANDBASED ROCHE HOLDING LTD SAID IT WILL END ITS DEVELOPMENT PROGRAM FOR THE TAT ANTAGONIST AN AIDS DRUG THE PROGRAM WAS STOPPED BECAUSE A LARGE PROPORTION OF PATIENTS IN A STUDY SHOWED POOR TOLERANCE FOR THE DRUG AT HIGHER DOSAGES RESEARCHERS FROM THE AIDS CLINICAL TRIALS GROUP WHICH COLLABORATED WITH HOFFMANNLA ROCHE ON THE STUDY REPORTED DISAPPOINTING RESULTS AT THE RECENT AIDS CONFERENCE IN BERLIN WE NOW BELIEVE THAT THE TAT ANTAGONIST NO LONGER OFFERS THE HOPE OF BECOMING AN EFFECTIVE ANTIVIRAL AGENT SAID JURGEN DREWS PRESIDENT OF INTERNATIONAL RESEARCH AND DEVELOPMENT FOR HOFFMANNLA ROCHE IAIN SIM PROJECT MANAGER FOR THE TAT ANTAGONIST SAID RESEARCH ALSO INDICATED THAT THE TAT PROTEIN MAY NOT BE ESSENTIAL FOR REPLICATION OF THE VIRUS THIS EVIDENCE COULD AFFECT OTHER COMPANIES' EFFORTS TO DEVELOP DRUGS USING THE TAT ANTAGONIST DR SIM SAID 9308030088 930803 EUROPE'S CURRENCY CRISIS BRIDGESTONE IS EXPANDING OUTPUT IN US AND EUROPE BRIDGESTONE CORP IS LOOKING TO EASE THE EFFECT OF THE YEN'S APPRECIATION THROUGH EXPANDED PRODUCTION IN THE US AND EUROPE A SPOKESMAN SAID IN THE US THE JAPANESE TIRE MAKER PLANS TO INCREASE THE PROPORTION OF LOCALLYMADE BRIDGESTONEBRAND TIRES FOR TRUCKS AND BUSES TO 81 OF OVERALL SALES THIS YEAR FROM 73 LAST YEAR IN EUROPE THE PROPORTION OF PASSENGERCAR TIRES WOULD RISE TO 60 FROM 52 BY 1995 WHILE THAT OF TIRES FOR TRUCKS AND BUSES WOULD RISE TO 30 FROM 19 THE SPOKESMAN SAID EXPANSION OF PRODUCTION OVERSEAS WILL REQUIRE SOME INVESTMENT IN PRODUCTION LINES THERE BRIDGESTONE'S PARENT PRETAX PROFIT PLUNGED 52 TO 1376 BILLION YEN 1313 MILLION IN THE FIRST HALF OFFICIALS BLAMED THE POOR RESULTS ON THE YEN'S STRENGTH WHICH REDUCED THE VALUE OF REVENUE FROM EXPORTS AFTER CONVERSION INTO THE YEN AS WELL AS WEAK DOMESTIC SALES 9308030087 930803 BUSINESS BRIEF COLONIAL BANCGROUP HOLDING COMPANY TO BUY FIRST AMFED IN STOCK SWAP COLONIAL BANCGROUP A MONTGOMERY ALA BANK HOLDING COMPANY SAID IT WILL BUY FIRST AMFED CORP A BANKING COMPANY IN HUNTSVILLE ALA IN A 1FOR1 STOCK SWAP VALUED AT 45 MILLION COLONIAL HOPES TO CLOSE THE DEAL BY THE FIRST QUARTER OF 1994 THE TRANSACTION WILL ALLOW COLONIAL WHICH HAS 2 BILLION IN ASSETS AND 83 OFFICES TO EXPAND INTO TENNESSEE FIRST AMFED HAS 485 MILLION IN ASSETS AND 13 OFFICES IN ALABAMA AND TENNESSEE MORRIS ANDERSON FIRST AMFED CHIEF EXECUTIVE AND CHAIRMAN WILL SERVE AS VICE CHAIRMAN OF COLONIAL'S BANKING SUBSIDIARY AND CHAIRMAN OF COLONIAL'S HUNTSVILLE REGION HE IS 59 YEARS OLD WILLIAM CHILDRESS FIRST AMFED PRESIDENT WILL SERVE AS VICE CHAIRMAN OF THE HUNTSVILLE REGION MR CHILDRESS IS 56 9308030086 930803 HOW TO ZAP TV VIOLENCE BY NEWTON N MINOW TELEVISION PRODUCERS WRITERS AND NETWORK EXECUTIVES MET YESTERDAY IN BEVERLY HILLS WITH PARENTS PSYCHOLOGISTS AND PUBLIC OFFICIALS TO TALK ABOUT TELEVISION VIOLENCE AND ITS EFFECT ON CHILDREN THIS MEETING OF WARRING CAMPS CAME AFTER BOTH HOUSES OF CONGRESS HELD HEARINGS ON THE SUBJECT THIS SPRING AND ONLY A MONTH AFTER THE TELEVISION NETWORKS ANNOUNCED THAT THEY WILL BEGIN LABELING PROGRAMS TO ALERT PARENTS TO THEIR VIOLENT CONTENT AS EXPECTED THIS CONSCIOUSNESSRAISING SEMINAR LED BY ABC'S JEFF GREENFIELD WAS STRONG ON HANDWRINGING AND SOULSEARCHING WAS STUDIOUSLY POLITE AND UNUSUALLY EDUCATIONAL BUT IT DIDN'T GO FAR ENOUGH FEW PEOPLE SERIOUSLY BELIEVE THAT THE PROPOSED WARNING SYSTEM IS EQUAL TO THE PROBLEM AND MOST PEOPLE THINK IT WILL MAKE THE PROBLEM WORSE BY DRAWING ATTENTION TO ESPECIALLY OFFENSIVE PROGRAMS NONETHELESS THE CONFERENCE PARTICIPANTS MANAGED TO TIPTOE AROUND THE PROSPECT OF FURTHER ACTION AND LITTLE WONDER ANYONE WHO PROPOSES DOING ANYTHING MORE TO CURB VIOLENCE IS ALMOST CERTAIN TO BE SHOUTED DOWN AS A CENSOR THIS REFRAIN IS ALREADY DE RIGUEUR IN THE TELEVISION INDUSTRY AND CONGRESS IS UNDERSTANDABLY RELUCTANT TO GET INTO THE STANDARDSANDPRACTICES SIDE OF TELEVISION PROGRAMMING EVEN MANY PARENTS WHO THINK TELEVISION VIOLENCE IS EXCESSIVE ARE UNCOMFORTABLE WITH JUDGING SPEECH THEY SHOULDN'T BE IF WE REALLY CARED ABOUT OUR CHILDREN INVOCATIONS OF THE FIRST AMENDMENT WOULD MARK THE BEGINNING NOT THE END OF SUCH DISCUSSIONS FOR MORE THAN A QUARTER CENTURY THE SUPREME COURT HAS RECOGNIZED THE NEED TO PROTECT CHILDREN FROM EXPRESSION INTENDED EXCLUSIVELY FOR ADULTS BUT PROVIDING SUCH PROTECTION HAS PROVED ESPECIALLY DIFFICULT IN BROADCASTING WHICH UNLIKE THE MAGAZINE RACK OR THE VIDEO STORE CANNOT BE PARTITIONED OR ITS CONTENTS HIDDEN IN A PLAIN BROWN WRAPPER COMMENTING ON THE BROADCAST INDUSTRY'S CYNICAL DEMAND THAT PARENTS BE EVER VIGILANT AGAINST OFFENSE JUSTICE JOHN PAUL STEVENS ONCE WROTE TO SAY THAT ONE MAY AVOID FURTHER OFFENSE BY TURNING OFF THE RADIO WHEN HE HEARS INDECENT LANGUAGE IS LIKE SAYING THAT THE REMEDY FOR AN ASSAULT IS TO RUN AWAY AFTER THE FIRST BLOW TODAY A SIMPLE INEXPENSIVE AND READILY AVAILABLE COMPUTER CHIP IF BUILT INTO A TV SET COULD PROVIDE A TECHNOLOGICAL ANSWER TO THIS OLD CONSTITUTIONAL DILEMMA THE CHIP WOULD EXPONENTIALLY EXPAND THE POWER OF THE REMOTE CONTROL MAKING IT POSSIBLE FOR PARENTS TO LOCK OUT PROGRAMS UNSUITABLE FOR CHILDREN PROVIDED ONLY THAT SUCH PROGRAMS ARE TRANSMITTED WITH A CODE THAT LABELS THEM AS SUCH WHEN MASSACHUSETTS REP EDWARD MARKEY SUGGESTED THAT THE CHIP BE A REQUIRED COMPONENT OF ALL TELEVISION SETS BROADCASTERS DISDAINFULLY DUBBED THIS LOCKOUT TECHNOLOGY THE VCHIP AND EQUATED IT WITH CENSORSHIP MORE LIKELY IS THAT THE VCHIP MIGHT CHIP INTO ADVERTISING REVENUES AFTER ALL THESE ARE THE SAME BROADCASTERS WHO FOR GENERATIONS HAVE INSISTED THAT THE RESPONSIBILITY FOR CHILDREN'S TELEVISION BELONGS WITH PARENTS WHOSE SOLE POWER RESIDES IN THEIR CONTROL OF THE ONOFF SWITCH NOW THAT A TRULY EFFECTIVE SWITCH EXISTS THE ENTERTAINMENT INDUSTRY IS INDIGNANT I'M OPPOSED TO A SINGLE BUTTON THAT CAN BLOCK OUT A WHOLE PROGRAM DAY OR A SINGLE PROGRAM WEEK SAID MOTION PICTURE ASSOCIATION OF AMERICA PRESIDENT JACK VALENTI FOX TV CHAIRMAN LUCIE SALHANY ARGUES QUITE FRANKLY THE VERY IDEA OF A VCHIP SCARES ME I'M ALSO VERY CONCERNED ABOUT SETTING A PRECEDENT WILL WE HAVE AN SCHIP' FOR SEX THE REAL QUESTION IS WHAT KIND OF PROGRAMMING IS APPROPRIATE FOR CHILDREN ESPECIALLY THE MILLIONS WHO WATCH WITH LITTLE OR NO ADULT SUPERVISION THE BEST ANSWER IS SIMPLY TO RATE ALL PROGRAMS IN MUCH THE SAME WAY MOTION PICTURES ARE RATED THEREBY NOTIFYING PARENTS OF A PROGRAM'S SUITABILITY FOR CHILDREN SUCH RATINGS SHOULD APPLY TO ALL BROADCASTERS AND ALL CABLE PROGRAMMERS RATING PROGRAMS IS NOT CENSORSHIP FAR FROM IT INDEED WHEN COMBINED WITH LOCKOUT TECHNOLOGIES A RATINGS SYSTEM WOULD ACTUALLY EXTEND THE REACH OF FREE EXPRESSION ON TELEVISION ALLOWING ADULTS TO WATCH WHATEVER SUITED THEM WHILE EFFECTIVELY ELIMINATING CHILDREN FROM THE AUDIENCE PARENTS WOULD STILL HAVE TO GO TO THE TROUBLE OF LOCKING OUT UNDESIRABLE PROGRAMS AND DOUBTLESS MANY WOULD CONTINUE TO NEGLECT THEIR PRIMARY RESPONSIBILITY OF MONITORING WHAT THEIR CHILDREN WATCH BUT IF MILLIONS OF OTHER PARENTS CHOSE TO BLOCK OUT AMERICA'S MOST WANTED OR NYPD BLUE ABC'S STEAMY NEW POLICE DRAMA WHAT CONCERN IS THAT OF BROADCASTERS WHO FOR YEARS HAVE INSISTED THAT THE PUBLIC INTEREST IS WHATEVER INTERESTS THE PUBLIC AT BOTTOM THE VCHIP CONTROVERSY IS ILLUSTRATIVE OF THE FACT THAT WHILE THE PUBLIC INTEREST IS SUPPOSED TO BE THE GUIDING PRINCIPLE BEHIND TELEVISION REGULATION NEITHER CONGRESS THE TELEVISION INDUSTRY NOR THE PUBLIC ITSELF HAS EVER BEEN CLEAR ON JUST WHERE THAT INTEREST LIES THE DEBATE OVER TELEVISED VIOLENCE OFFERS AN OPPORTUNITY TO RETHINK THE QUESTION AT A PROPITIOUS TIME AS TELEVISION IS BEING TRANSFORMED INTO A NEW INTERACTIVE MEDIUM THOSE MEETING YESTERDAY IN BEVERLY HILLS HAD THE FIRST OPPORTUNITY TO ADDRESS THESE ESSENTIALLY MORAL QUESTIONS IN A SERIOUS WAY EVEN IF THEIR EFFORT FELL SHORT THE DISCUSSION THEY BEGAN MUST NOT BE ALLOWED TO CLOSE WITH THE CONFERENCE IT IS TIME WE USED THE FIRST AMENDMENT TO PROTECT AND NURTURE OUR CHILDREN RATHER THAN AS AN EXCUSE TO IGNORE THEM MR MINOW IS A FORMER CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION AND DIRECTOR OF THE PUBLIC SERVICE TELEVISION PROJECT OF THE AMERICAN ACADEMY OF ARTS AND SCIENCES CRAIG L LAMAY THE PROJECT'S ASSOCIATE DIRECTOR CONTRIBUTED TO THIS ARTICLE 9308030085 930803 TECHNOLOGY & HEALTH PICTURETEL TOSHIBA SET JOINT TECHNOLOGY PACT DANVERS MASS PICTURETEL CORP SAID IT REACHED A JOINT TECHNOLOGY AGREEMENT WITH JAPAN'S TOSHIBA CORP THAT COULD LEAD TO LAPTOP COMPUTERS THAT FUNCTION AS PORTABLE PICTURE PHONES PICTURETEL SAID THAT UNDER THE AGREEMENT THE TWO COMPANIES ARE EXPLORING WAYS IN WHICH TOSHIBA'S TECHNOLOGY FOR COMPUTER SCREENS VIDEO CAMERAS AND ESPECIALLY SEMICONDUCTORS CAN BE USED TO IMPROVE PICTUREPHONE TECHNOLOGY ROBERT MITRO SENIOR VICE PRESIDENT OF PICTURETEL SAID THAT UNDER THE AGREEMENT TOSHIBA IS LIKELY TO CONSIDER BUILDING A SEMICONDUCTOR THAT WOULD REPLACE THE TYPE OF LARGE CIRCUIT BOARD THAT PICTURETEL NOW USES FOR COMPRESSING AND DECOMPRESSING VIDEO SIGNALS HE SAID BOTH DESKTOP AND LAPTOP COMPUTERS WITH PICTUREPHONE CAPABILITY WOULD HAVE TO BE LINKED TO THE HIGHSPEED DIGITAL PHONE LINES INSTALLED IN GROWING NUMBERS OF BUSINESSES THOSE CARRY MUCH MORE DATA THAN THE LINES TYPICALLY INSTALLED IN HOMES MR MITRO DECLINED TO DISCUSS A TIMETABLE PICTURETEL ALSO SAID THAT TOSHIBA WILL SERVE AS A JAPANESE DISTRIBUTOR OF PICTURETEL'S VIDEOCONFERENCING SYSTEMS 9308030084 930803 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG RECENT OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT UNION ELECTRIC CO 75 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2023 PRICED AS 715S AT 98878 TO YIELD 7242 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC US LEATHER INC 135 MILLION OF SENIOR NOTES DUE JULY 31 2003 PRICED AS 1025S AT 99229 TO YIELD 10375 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO FEDERAL HOME LOAN MORTGAGE CORP 234 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1581 IS BACKED BY THE AGENCY'S FIVEYEAR 55 BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 58 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 85 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY JP MORGAN SECURITIES INC THE OFFERING SERIES 1582 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS CREDIT LOCAL DE FRANCE FRENCH AGENCY 500 MILLION FRENCH FRANCS OF 575 EUROBONDS DUE AUG 27 1998 AT ISSUE PRICE 10135 VIA BANQUE PARIBAS REOFFERED AT 9941 TO YIELD 589 A MARGIN OF 18 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY BOND FEES 1875 POINTS IMI BANK INTERNATIONAL ITALIAN PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE SEPT 1 1997 AT ISSUE AND REOFFER PRICE 9966 VIA LEHMAN BROTHERS INTERNATIONAL AND KIDDER PEABODY SECURITIES CO INTEREST PAYABLE SEMIANNUALLY AT 0375 POINT ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS GUARANTOR ISTITUTO MOBILIARE ITALIANO SPA FEES 02 POINT NATIONAL BANK OF HUNGARY SOVEREIGN ONE BILLION MARKS OF 875 EUROBONDS DUE SEPT 8 2003 AT ISSUE PRICE 1015 VIA DEUTSCHE BANK AG RECOMMENDED REOFFER PRICE 9925 TO YIELD 887 A SPREAD OF 230 BASIS POINTS ABOVE COMPARABLE GERMAN TREUHAND BOND FEES THREE POINTS LESS 02 POINT DEDUCTED FOR LEAD MANAGER RAVI LTD SPECIALPURPOSE VEHICLE 20 BILLION YEN OF 5 EUROBONDS DUE JULY 6 1999 AT ISSUE AND REOFFER PRICE PAR VIA MORGAN STANLEY INTERNATIONAL BONDS SECURED ON 185 MILLION OF 9125 BONDS DUE JULY 6 2009 ISSUED BY FERROVIE DELLO STATO AND ON SWAP WITH MORGAN STANLEY CAPITAL SERVICES COMMISSIONS UNDISCLOSED 9308030083 930803 WHO'S NEWS RJR NABISCO'S ZUCKERMAN MULLS IBM TREASURER JOB A WALL STREET JOURNAL NEWS ROUNDUP ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP IS IN TALKS WITH VETERAN FINANCE EXECUTIVE FREDERICK W ZUCKERMAN TO BECOME THE COMPANY'S NEXT TREASURER MR ZUCKERMAN 59 YEARS OLD WOULD BE THE LATEST OF SEVERAL TOP OFFICIALS RECRUITED BY IBM'S NEW CHAIRMAN LOUIS V GERSTNER JR FROM OUTSIDE THE COMPUTER COMPANY MR ZUCKERMAN IS TREASURER OF RJR NABISCO INC WHERE MR GERSTNER WAS CHAIRMAN BEFORE JOINING IBM IN APRIL AT IBM HE WOULD REPORT TO THE NEW CHIEF FINANCIAL OFFICER JEROME YORK WHO WORKED WITH MR ZUCKERMAN WHEN THEY WERE BOTH TOP FINANCE OFFICIALS AT CHRYSLER CORP MR ZUCKERMAN ALSO SPENT SEVERAL YEARS IN FINANCIAL JOBS AT IBM IN THE 1960S AND 1970S FROM 1976 TO 1979 HE WAS CONTROLLER OF IBM'S REAL ESTATE AND CONSTRUCTION DIVISION ALTHOUGH IBM WOULDN'T COMMENT INDUSTRY OFFICIALS CONFIRMED THAT THE COMPANY IS TALKING TO MR ZUCKERMAN MR ZUCKERMAN DIDN'T RETURN CALLS SEEKING COMMENT IBM HAS BEEN CONSIDERING OTHER CANDIDATES HOWEVER AND OFFICIALS CAUTIONED THAT TALKS WITH MR ZUCKERMAN AREN'T FINAL USA TODAY REPORTED YESTERDAY THAT MR ZUCKERMAN HAD BEEN TAPPED FOR THE TREASURER'S POST IBM HAS BEEN LOOKING FOR A NEW TREASURER SINCE JUNE WHEN INCUMBENT ROBERT RIPP SAID HE WOULD RETIRE 9308030082 930803 LAW LEGAL BEAT FEDERAL JUDGE ATTACKS DISPARITY IN SENTENCING FOR COCAINE CASES BY JUNDA WOO AND JOAN E RIGDON STAFF REPORTERS OF THE WALL STREET JOURNAL A FEDERAL JUDGE IN OMAHA NEB BECAME THE FIRST IN THE NATION TO RULE THAT SENTENCES FOR CRACKCOCAINE DEALERS CAN'T BE HEAVIER THAN FOR DEALERS IN POWDERED COCAINE BECAUSE THE DISTINCTION DISCRIMINATES AGAINST BLACKS JUDGE LYLE E STROM BROKE AWAY FROM THE FEDERAL SENTENCING GUIDELINES THAT CREATED THE DISPARITY WHICH HAS LONG DRAWN SHARP CRITICISM FROM CIVIL LIBERTARIANS CRACKCOCAINE USERS ARE PREDOMINANTLY BLACK WHILE POWDEREDCOCAINE USERS TEND TO BE WHITE UNDER A NUMERICAL FORMULA THAT ATTACHES VALUES TO PARTICULAR CRIMES THE SENTENCING GUIDELINES TREAT CRACK AS 100 TIMES WORSE THAN POWDERED COCAINE CRIMINALDEFENSE LAWYERS AROUND THE COUNTRY NOTING THAT THE INGREDIENTS IN BOTH FORMS OF COCAINE ARE THE SAME HAVE CHALLENGED THE COCAINE GUIDELINES SINCE CONGRESS ENACTED THEM IN 1988 CRACK IS THE PURIFIED SMOKABLE FORM OF COCAINE BUT NUMEROUS FEDERAL APPEALS COURTS INCLUDING THE ONE GOVERNING NEBRASKA HAVE FOUND THE DISTINCTION CONSTITUTIONAL AND RATIONALLY BASED THE COURTS HAVE SAID THAT CRACK USERS ARE MORE VIOLENT AND DANGEROUS OR THAT CRACK MUST BE ERADICATED BECAUSE IT SO CHEAP AND ACCESSIBLE JUDGE STROM HOWEVER BASED HIS RULING ON ANECDOTAL EVIDENCE SUPPLIED BY DEFENSE LAWYERS IN A ROUTINE DRUGDEALING CASE EVEN IF THE DISPARATE PENALTIES ARE INHERENTLY CONSTITUTIONAL THE JUDGE FOUND WHEN APPLIED TO BLACKS THEIR IMPACT IS DISPROPORTIONATELY SEVERE MORE THAN 90 OF PEOPLE PROSECUTED FOR DEALING CRACK ARE AFRICANAMERICAN THE JUDGE SAID MEMBERS OF THE AFRICANAMERICAN RACE ARE BEING TREATED UNFAIRLY IN RECEIVING SUBSTANTIALLY LONGER SENTENCES THAN CAUCASIAN MALES WHO TRADITIONALLY DEAL IN POWDER COCAINE AND THIS DISPARITY IS SIMPLY NOT JUSTIFIED BY THE EVIDENCE HE WROTE THOUGH THE JUDGE REJECTED A CONSTITUTIONAL CHALLENGE TO THE GUIDELINE HE PURSUED A DIFFERENT AVENUE TO BRING THE SENTENCES INTO LINE THE GUIDELINES PERMIT A JUDGE TO DEPART DOWNWARD FROM THE PRESCRIBED SENTENCE FOR A CRIME IF MITIGATING CIRCUMSTANCES EXIST THAT WEREN'T ADEQUATELY TAKEN INTO CONSIDERATION IN FORMULATING THE GUIDELINES IN THIS CASE THE JUDGE DEEMED THAT THE DISPARATE TREATMENT OF BLACKS WAS SUFFICIENTLY MITIGATING TO JUSTIFY A DOWNWARD DEPARTURE IN SENTENCING FOR CRACK DEALING AS A RESULT OF THE RULING HASSAN MAJIED AN OMAHA MAN CONVICTED OF CONSPIRACY TO DISTRIBUTE COCAINE RECEIVED 20 YEARS IN PRISON INSTEAD OF 30 YEARS TO LIFE WILLIAM MICKLE II THE ASSISTANT US ATTORNEY WHO PROSECUTED THE CASE SAID PROSECUTORS HADN'T DECIDED WHETHER TO APPEAL THE SENTENCING DISPARITY IS BEING STUDIED BY GROUPS RANGING FROM THE AMERICAN CIVIL LIBERTIES UNION TO THE US SENTENCING COMMISSION WHICH PROMULGATES SENTENCING GUIDELINES AND WHICH IS EXPECTED TO ISSUE A REPORT AT THE END OF THIS YEAR IN 1991 MINNESOTA'S HIGH COURT SAID TREATING POWDEREDCOCAINE AND CRACK USERS DIFFERENTLY WAS UNCONSTITUTIONAL SO FAR NO OTHER STATE COURT HAS FOLLOWED SUIT A RIVAL HOSPITAL CONCERN FILED AN ANTITRUST LAWSUIT AGAINST GALEN HEALTH CARE INC AND COLUMBIA HOSPITAL CORP IN AN EFFORT TO PREVENT THE TWO COMPANIES FROM PROCEEDING WITH A MERGER THE SUIT WAS FILED THURSDAY IN FEDERAL COURT IN ORLANDO FLA BY ADVENTIST HEALTH CARE SYSTEM/SUNBELT HEALTHCARE CORP A NONPROFIT HOSPITAL CONCERN BASED IN THAT CITY ADVENTIST HAS 14 HOSPITALS THROUGHOUT THE SOUTH ADVENTIST SAYS THAT BEFORE THE MERGER COLUMBIA AGREED TO SELL ITS KISSIMMEE MEMORIAL HOSPITAL IN KISSIMMEE FLA TO ADVENTIST FOR 24 MILLION BUT COLUMBIA WALKED AWAY FROM THE DEAL AFTER THE ANNOUNCED MERGER WITH GALEN ADVENTIST'S PRESIDENT MARDIAN BLAIR SAID IN ITS LAWSUIT ADVENTIST ALLEGES THAT WITH COLUMBIA GALEN WOULD DOMINATE 60 OF THE HEALTHCARE MARKET IN OSCEOLA COUNTY FLA WHICH INCLUDES KISSIMMEE ADVENTIST DOESN'T HAVE ANY HOSPITALS IN THAT COUNTY BUT IT SAID ONE OF ITS HOSPITALS IN A NEIGHBORING COUNTY DRAWS A SMALL NUMBER OF OSCEOLA CUSTOMERS GALEN SAID IT AND COLUMBIA BELIEVE THE SUIT IS WHOLLY WITHOUT MERIT AND WILL CONTEST IT VIGOROUSLY NO HEARING DATE HAS BEEN SET LAWYERS NOT INVOLVED IN THE CASE SAY THAT A 60DOMINATION IN A PARTICULAR MARKET IS BIG ENOUGH TO POTENTIALLY VIOLATE ANTITRUST LAWS WHICH ARE DESIGNED TO PROMOTE FREE COMPETITION AND TO PREVENT COMPANIES FROM TAKING ADVANTAGE OF LESS POWERFUL FIRMS TO PROVE SUCH A VIOLATION HOWEVER ADVENTIST WOULD HAVE TO SHOW THAT PATIENTS DON'T HAVE EASY ACCESS TO HOSPITALS OUTSIDE THE COUNTY AND THAT IT WOULD BE DIFFICULT FOR OTHER HOSPITALS TO ENTER THE OSCEOLA MARKET AND COMPETE WITH GALEN EVEN IF ADVENTIST SUCCESSFULLY PROVED THAT THE MERGER CREATED ANTITRUST PROBLEMS A JUDGE WOULD PROBABLY ALLOW THE MERGER TO PROCEED AS LONG AS THE COMBINED COMPANY AGREED TO REDUCE ITS DOMINANCE IN THE AREA SAID JEFF ZUCKERMAN AN ANTITRUST SPECIALIST AT THE LAW FIRM CURTIS MALLETPERVOST COLT & MOSLE IN NEW YORK IF YOU'VE GOT THIS MASSIVE NATIONWIDE MERGER AND THERE'S JUST ONE LOCAL PROBLEM THE COURTS GENERALLY WOULDN'T STOP THE WHOLE TRANSACTION JUST TO DEAL WITH IT MR ZUCKERMAN SAID SEPARATELY GALEN SAID IT RECEIVED A FAVORABLE RULING FROM THE INTERNAL REVENUE SERVICE ALLOWING IT TO PROCEED WITH THE MERGER UNDER THE RULING THE MERGER WITH COLUMBIA WOULDN'T CHANGE TAX RULINGS PREVIOUSLY MADE IN CONNECTION WITH THE SPINOFF OF GALEN BY HUMANA INC WHO'S NEWS DENNIS P HARKAWIK WILL JOIN THE LAW FIRM JAECKLE FLEISCHMAN & MUGEL BUFFALO NY AS A PARTNER AND HEAD OF ITS ENVIRONMENTAL GROUP EFFECTIVE AUG 9 MR HARKAWIK WAS PREVIOUSLY A SENIOR ENVIRONMENTAL PARTNER WITH LEBOEUF LAMB LEIBY & MACRAE IN NEW YORK EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9308030081 930803 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JULY 30 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ALLEGHANY COUNTY MD WILL REDEEM ON SEPT 1 1993 65000 PRINCIPAL AMOUNT OF ITS 5875 SERIES 1977 POLLUTION CONTROL REVENUE BONDS DUE SEPT 1 2002 MARYLAND NATIONAL BANK IS TRUSTEE COCOA BEACH FLA WILL REDEEM ON SEPT 2 1993 ITS 1978 SERIES SEWER REVENUE BONDS BARNETT BANKS TRUST CO IS PAYING AGENT DELAWARE STATE WILL REDEEM ON SEPT 1 1993 ITS 6 GENERAL OBLIGATION BONDS DUE SEPT 1 19951998 MELLON BANK PA IS TRUSTEE HYDROQUEBEC WILL REDEEM ON SEPT 1 1993 ITS 9 1/4 SINKING FUND DEBENTURES SERIES DF DUE SEPT 1 1997 BANK OF MONTREAL TRUST CO IS REDEMPTION AGENT HOPEWELL VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON SEPT 1 1993 180000 PRINCIPAL AMOUNT OF ITS 9 3/4 SERIES 1976A REVENUE BONDS DUE SEPT 1 1999 FIRST VIRGINIA BANK OF TIDEWATER IS TRUSTEE MISSOURI HOUSING DEVELOPMENT COMMISSION WILL REDEEM ON SEPT 1 1993 25000 PRINCIPAL AMOUNT OF ITS 9625 QUALIFIED MORTGAGE PURCHASE BONDS DUE SEPT 1 2006 MERCANTILE BANK OF ST LOUIS MO IS TRUSTEE AND PAYING AGENT SAINT ANTHONY'S HOSPITAL ALTON ILL WILL REDEEM ON SEPT 1 1993 ITS HOSPITAL FACILITY 1979 SERIES REVENUE BONDS DUE SEPT 1 1995 WEDGE BANK IS TRUSTEE SHENANDOAH COUNTY VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM OPTIONALLY ON SEPT 1 1993 ITS 775 SERIES 1974 POLLUTION CONTROL REVENUE BONDS DUE SEPT 1 1994 SIGNET BANK VA IS TRUSTEE TAZEWELL COUNTY PEKIN ILL WILL REDEEM ON SEPT 1 1993 500000 PRINCIPAL AMOUNT OF ITS 8 POLLUTION CONTROL REVENUE BONDS SERIES 1976 DUE SEPT 1 1996 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE WASHINGTON PUBLIC POWER SUPPLY SYSTEM WILL REDEEM ON AUG 26 1993 147385000 OF ITS 1978 SERIES NUCLEAR PROJECT NO 2 REVENUE BONDS DUE JULY 1 19942012 CONTINENTAL BANK IS TRUSTEE THE SYSTEM WILL ALSO REDEEM ON AUG 26 1993 ITS NUCLEAR PROJECT NO 1 REVENUE BONDS ALL MATURING ON JULY 1 OF THE INDICATED YEARS 1976A SERIES DUE 19941998 AND 2010 1978B SERIES DUE 19941998 2003 AND 2009 AND 1979 SERIES BONDS DUE 19941998 2003 AND 2009 IN ADDITION THE SYSTEM WILL REDEEM ON AUG 30 1993 ITS NUCLEAR PROJECT NO 1 REVENUE BONDS 1976B SERIES DUE JULY 1 OF THE INDICATED YEARS 19941998 AND 2010 MORGAN GUARANTY TRUST CO NEW YORK IS TRUSTEE WYOMING INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON SEPT 1 1993 ITS 55 POLLUTION CONTROL REVENUE BONDS SERIES A DUE NOV 1 2007 MELLON BANK IS TRUSTEE ILLINOIS BELL TELEPHONE CO A SUBSIDIARY OF AMERITECH CORP WILL REDEEM ON AUG 9 1993 ITS 8 FIRST MORTGAGE BONDS SERIES J DUE JUNE 1 2005 HARRIS TRUST & SAVINGS CO IS TRUSTEE SAN DIEGO GAS & ELECTRIC CO WILL REDEEM ON SEPT 1 1993 ITS 45 SINKING FUND DEBENTURES DUE SEPT 1 1994 UNION BANK IS TRUSTEE TEXAS INSTRUMENTS INC WILL REDEEM ON SEPT 10 1993 ITS SERIES A CONVERSION PREFERRED STOCK AND 226 DEPOSITARY SHARES HARRIS TRUST & SAVINGS BANK CHICAGO IS PAYING AGENTEND 9308030080 930803 ECONOMY FIRE HITS EXXON REFINERY THREE WORKERS ARE MISSING BATON ROUGE LA A FIRE SWEPT PART OF AN EXXON CORP REFINERY THE NATION'S THIRD LARGEST AND THREE WORKERS WERE LISTED AS MISSING THE BLAZE WAS UNDER CONTROL SEVERAL HOURS AFTER IT BEGAN BUT AS OF LATE YESTERDAY THE STEEL STRUCTURE AT THE SITE OF THE FIRE WAS TOO HOT FOR RESCUE WORKERS TO EXAMINE THE EXTENT OF THE DAMAGE AND SEARCH FOR THE MISSING WORKERS THE REST OF THE PLANT WHICH HAS THE CAPACITY TO REFINE 421000 BARRELS A DAY OF OIL APPEARED TO BE UNDAMAGED AND WAS CONTINUING TO OPERATE AN EXXON SPOKESMAN SAID WHILE PETROLEUM PRODUCT PRICES ROSE IN FUTURES TRADING ON THE NEW YORK MERCANTILE EXCHANGE THE GAINS WEREN'T HUGE REFINING INDUSTRY EXECUTIVES SAID GASOLINE AND HEATING OIL INVENTORIES ARE AMPLE AND REMOVING A SMALL PORTION OF PRODUCTION SHOULDN'T HAVE MUCH OF A LONGTERM IMPACT WE HAVE AN OVERSUPPLY OF GASOLINE IN THE MARKET RIGHT NOW SAID KENNETH MILLER A SENIOR PRINCIPAL AT REFINING CONSULTANTS PURVIN & GERTZ INC IN HOUSTON AS A RESULT FUTURES MARKET PARTICIPANTS FOCUSED MORE ON HEATING OIL TRADING ALTHOUGH MR MILLER SAID THOSE INVENTORIES ARE ALSO AT COMFORTABLE LEVELS 9308030079 930803 ECONOMY CLINTON FINDS NO GROUNDS' FOR FED TO INCREASE RATES WASHINGTON PRESIDENT CLINTON YESTERDAY SAID THERE'S NO GROUNDS FOR THE FEDERAL RESERVE BOARD TO RAISE SHORTTERM INTEREST RATES IN A TELEPHONE LINKUP TO A GROUP OF EDITORIAL WRITERS MR CLINTON SAID IF WE WERE HAVING 4 OR 5 GROWTH AND INFLATION WAS GETTING OUT OF HAND I COULD UNDERSTAND A FED MOVE TO BOOST RATES BUT THERE'S NO GROUNDS FOR IT NOW I DON'T THINK WE SHOULD RAISE INTEREST RATES UNTIL THERE'S REAL ECONOMIC GROWTH MR CLINTON TOLD A QUESTIONER WHO ASKED ABOUT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S RECENT PUBLIC STATEMENT THAT THE NEXT MOVE FOR THE FED IS TO RAISE INTEREST RATES MY READ ON WHAT MR GREENSPAN SAID WAS THAT IF INFLATION WARRANTED IT WE MIGHT RAISE INTEREST RATES THE PRESIDENT SAID HOWEVER MR CLINTON SAID IT MAY NOT BE NECESSARY TO RAISE INTEREST RATES WHEN THERE IS A SERIOUS DEFICITREDUCTION EFFORT UNDER WAY EVEN IF THE ECONOMY EXPANDS WHAT WE'RE TRYING TO DO BY BRINGING THE DEFICIT DOWN IS TO JUSTIFY KEEPING THE INTEREST RATES DOWN EVEN WHEN THERE'S ECONOMIC GROWTH MR CLINTON SAID 9308030078 930803 THIS DAFFY DUCK HAS RIBS AND THEY CAN REALLY BE BROKEN DRESSED UP AS CARTOON FIGURES THEME PARK WALKAROUNDS FIND THE WORK A MIXED BAG BY CRISTINE GONZALEZ STAFF REPORTER OF THE WALL STREET JOURNAL A NOTSOFUNNY THING HAPPENED TO DAFFY DUCK AS THE COSTUMED CHARACTER FROLICKED THROUGH THE MIDWAY OF SIX FLAGS MAGIC MOUNTAIN THEME PARK IN VALENCIA CALIF NORTH OF LOS ANGELES A HUSKY MAN SHOWING OFF FOR HIS WIFE AND GRANDCHILDREN SUDDENLY SLUGGED DAFFY AND WALKED AWAY LAUGHING CARTOON CHARACTERS GET HIT AND BOUNCE BACK SAYS BETINA BECKER THE UNFORTUNATE EMPLOYEE WHO WAS WEARING MAGIC MOUNTAIN'S DUCK SUIT AT THE TIME GUESTS JUST DON'T UNDERSTAND THERE ARE PEOPLE INSIDE THESE COSTUMES WHO DO GET HURT AND WHO DO HAVE FEELINGS FEELINGS INDEED THE 27YEAROLD MS BECKER SUFFERED BROKEN RIBS IN THE ATTACK IN THE FOUR YEARS SHE WORKED AT MAGIC MOUNTAIN PLAYING VARIOUS CHARACTERS SHE ALSO HAD HER ANKLE BROKEN WHEN BUGS BUNNY ACCIDENTALLY STEPPED ON HER FOOT IN A ROMP THROUGH THE PARK ONCE SHE HAD TO DRIVE AWAY PRANKSTERS TRYING TO SET FIRE TO WILE E COYOTE'S TAIL FEW ACTING JOBS ARE AS DIFFICULT OR AS FULFILLING IN UNEXPECTED WAYS AS THOSE OF WALKAROUNDS AS THESE PEOPLE IMPERSONATING CARTOON CHARACTERS ARE CALLED ON THE DIFFICULT SIDE OF THE LEDGER THE CHARACTERS GET PUNCHED KICKED TAUNTED AND GROPED BY PARK PATRONS WHO SEE THEM NOT AS HUMAN BEINGS BUT AS CREATURES THAT ARE INDESTRUCTIBLE WHAT'S MORE WHILE THEIR PERPETUALLY SMILING MICKEY MOUSE BULLWINKLE AND FRED FLINTSTONE PERSONAE PAT TINY HEADS AND POSE FOR PICTURES THE ACTORS INSIDE OFTEN ARE BURNING UP WITHIN SOME HUGE HEADGEAR THE TEMPERATURE CAN REACH 130 DEGREES ON A HOT SUMMER DAY AMONG THEME PARKS' LOWESTPAID PERFORMERS OFTEN EARNING AS LITTLE AS 435 AN HOUR AND RARELY MORE THAN 10 WALKAROUNDS SOMETIMES FIND THAT EMPLOYERS TOO DENY THEIR VERY EXISTENCE TO US THEY ARE MICKEY MOUSE AND PLUTO PERIOD SAYS ROD MADDEN A SPOKESMAN FOR WALT DISNEY WORLD NEAR ORLANDO FLA JOHN MCCLINTOCK OF DISNEYLAND THE 38YEAROLD ANAHEIM CALIF PARK THAT GAVE WALKAROUNDS THEIR START ADDS IT DOES SEEM A LITTLE PECULIAR AT TIMES BUT WE DON'T WANT TO CREATE A SITUATION WHERE LITTLE KIDS WHO BELIEVE IN THEM ARE DISILLUSIONED AND WHILE SOME WALKAROUNDS SEE THEIR JOB AS ENTRYLEVEL ACTING THEY DRAW A BLANK WHEN ASKED TO NAME A CURRENT MOVIE STAR WHO STARTED OUT AS GOOFY OR YOGI BEAR WHILE SOME OF THE WALKAROUNDS CONTINUE PURSUING ACTING CAREERS MANY SIMPLY GIVE UP AND FIND OTHER EMPLOYMENT DISNEY'S RELUCTANCE TO DISCUSS WALKAROUNDS MAKES IT HARD TO ESTIMATE HOW MANY OF THEM THERE TRULY ARE THE DISNEY PARKS WITH HUNDREDS EACH ARE THE BIGGEST EMPLOYERS TO ITS STABLE OF MICKEY MINNIE CAPTAIN HOOK AND THE REST DISNEYLAND RECENTLY INTRODUCED 20 NEW WALKAROUNDS INCLUDING AN IMPOSING BEAST FROM BEAUTY AND THE AND THE ENERGETIC BLUE GENIE FROM ALADDIN BUT THERE ARE MYRIAD OTHER WALKAROUNDS NOT JUST AT AMUSEMENT PARKS BUT AT SPORTING EVENTS SHOPPING MALLS AND EVEN ON STREET CORNERS WHERE THEY GET EVEN LESS RESPECT THE NUMBER OF THEME PARKS IN THIS COUNTRY HAS GROWN 18 IN THE PAST FIVE YEARS TO 700 ACCORDING TO THE INTERNATIONAL ASSOCIATION OF AMUSEMENT PARKS A UNION THE AMERICAN GUILD OF VARIETY ARTISTS HAS PRESSED FOR BETTER WORKING CONDITIONS MORE FREQUENT BREAKS AND FOR EXAMPLE THE AIR CONDITIONING OF THE FIEVEL MOUSE COSTUMES VIA BATTERYOPERATED FANS IN THE HEADGEAR AT THE UNIVERSAL STUDIOS TOURS NEAR ORLANDO AND AT UNIVERSAL CITY CALIF THE TWO THEME PARKS ARE OWNED BY JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO ONE OF THE THINGS WE TRY TO GET ACROSS IS THAT THEY ARE PERFORMERS SAYS LON HUBER OF AGVA WHICH REPRESENTS MORE THAN 100 WALKAROUNDS IN SOUTHERN CALIFORNIA INCLUDING THOSE AT UNIVERSAL AND AT TIME WARNER INC'S MAGIC MOUNTAIN WALT DISNEY CO'S CHARACTERS AREN'T UNIONIZED BUT EVEN WHILE THEY ARE BEING JOSTLED BUMPED BRUISED AND STAMPEDED BY SCHOOLCHILDREN AND MALEVOLENT GRANDFATHERS PEOPLE WHO HOLD THESE JOBS HAVE REASONS TO ENDURE THE INDIGNITIES EVERYONE I SEE THROWS OUT THEIR HAND TO SHAKE MINE AND PEOPLE RUN FROM FAR AWAY TO GIVE YOU A HUG SAYS 22YEAROLD JIMI HARRELL WHO PLAYS HUCKLEBERRY HOUND AT KINGS DOMINION IN VIRGINIA OWNED BY PARAMOUNT COMMUNICATIONS INC THAT HAS MADE LIFE IN A HAIRY 30POUND COSTUME MORE THAN TOLERABLE ROBIN NAVLYT HAS ONLY TO THINK ABOUT THE DAY SHE WAS PLAYING FIEVEL AT CALIFORNIA'S UNIVERSAL STUDIOS TOURS WHEN A BLIND GIRL PLACED HER HANDS ON THE MOUSE'S HEAD AND BROKE INTO A BIG SMILE THAT'S THE BEST PART OF BEING A CHARACTER SAYS MS NAVLYT A 4FOOT10 27YEAROLD WHOSE CAREER IN COSTUME BEGAN WITH AN ACTUAL MOVIE ROLE SHE PLAYED SLIMER IN THE 1989 FILM GHOSTBUSTERS II ADDS MS BECKER OF THE BROKEN RIBS DON'T MISUNDERSTAND IT REALLY IS FUN WORK SHE ISN'T A WALKAROUND ANYMORE SHE WORKS AS A COSMETOLOGIST AND A DATAENTRY CLERK BUT SHE STILL THINKS ABOUT GOING BACK TO HER JOB AS DAFFY DUCK ON A RECENT 90DEGREE DAY AT KNOTT'S BERRY FARM IN BUENA PARK CALIF 20YEAROLD MARCEY MCCONNELL IS PLAYING SNOOPY TO RAUCOUS CROWDS OF CHILDREN FELLOW WALKAROUND TIFFANY KROESER SERVES AS HER ESCORT TAKING SNOOPY TO THE DOGHOUSE EVERY HALFHOUR FOR A ROOTBEER BREAK IT IS THE CARTOON BEAGLE'S FAVORITE DRINK BOTH YOUNG WOMEN ARE PAID 8 AN HOUR FOR THIS HARD WORK WHICH THEY HAVE BEEN DOING FOR FOUR YEARS IN THE DRESSING ROOM AIRCONDITIONED AND MERCIFULLY QUIET SNOOPY'S HEAD POPS OPEN TO REVEAL MS MCCONNELL DRIPPING WITH SWEAT SHE TAKES OFF HER FEET AND PLOPS DOWN IN A CHAIR NEAR THE MASKS OF CHARLIE BROWN AND LINUS AND OTHER PEANUTS CHARACTERS ARRAYED ON SHELVES DOWNING SOME ICE WATER SHE CHATS WITH MS KROESER BEFORE SUITING UP TO HEAD BACK OUT TO THE MOBS YOU GET MAULED SAYS MS KROESER 21 WHO AT ONE TIME OR OTHER HAS BEEN PINCHED KICKED AND TUGGED BUT SHE STILL CALLS IT THE MOST REWARDING JOB IN THE PARK KNOTT'S WHICH BEGAN USING WALKAROUNDS WHEN ITS CAMP SNOOPY TODDLER ATTRACTION OPENED 10 YEARS AGO NOW HAS 15 EMPLOYEES IN PEANUTS ROLES MAGIC MOUNTAIN WALKAROUNDS SEEM TO HAVE HAD MORE THAN THEIR SHARE OF PROBLEMS WITH BOISTEROUS CUSTOMERS IN 1989 ANOTHER ACTOR PLAYING DAFFY DUCK WAS PUSHED TO THE GROUND BY THE 26YEAROLD BROTHER OF A 10YEAROLD GIRL WHOM DAFFY HAD ACCIDENTALLY BUMPED BUT MAGIC MOUNTAIN SPOKESWOMAN EILEEN HARRELL SAYS THAT DESPITE THE OCCASIONAL INCIDENT THE DANGERS TO WALKAROUNDS AREN'T ALL THAT SERIOUS PEOPLE ARE NATURALLY DRAWN TO THE CHARACTERS AND TAP THEM ON THE SHOULDER SHE SAYS BUT THEY'RE WELLPADDED AND THEY HAVE THE ESCORTS THAT GO ALONG WITH THEM EVEN SO YOU HAD BETTER WATCH OUT IF YOU ARE DRESSED AS A VILLAIN AND THERE ARE TEENAGERS AROUND MAINLY IT WAS JUNIOR HIGH STUDENTS SAYS ROBB ENGLIN OF THE PROBLEMS HE ENCOUNTERED IN HIS TWO YEARS WEARING SYLVESTER THE CAT AND TASMANIAN DEVIL SUITS AT MAGIC MOUNTAIN SOMETIMES GUESTS WOULD GREET HIM NICELY THEN THEY'D SLAP ME IN THE FACE SAYS MR ENGLIN WHO IS 23 THEY SEEMED TO THINK THEY COULD GET THEIR AGGRESSIONS OUT ON SOME FUZZY CHARACTER BUT THE VISITORS WHO BOTHERED HIM THE MOST WERE THE ONES WHO YELLED IN HIS FACE YOU'RE NOT REAL YOU'RE FAKE HE SAYS SOMETIMES THEY JUST KEEP FOLLOWING YOU YOU REALLY GET TO SEE HOW MESSED UP SOME PEOPLE ARE 9308030077 930803 MONDAY'S MARKETS EUROPE'S SHIFT ON CURRENCY PROPELS STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES RALLIED AS EUROPE'S LESS STRINGENT CURRENCY SYSTEM ENHANCED THE PROSPECTS OF AN ECONOMIC RECOVERY THERE BOND PRICES CLIMBED MODESTLY THE DOW JONES INDUSTRIAL AVERAGE SOARED 2152 POINTS TO 356099 STANDARD & POOR'S 500STOCK INDEX JUMPED 202 TO 45015 AND THE NASDAQ COMPOSITE INDEX GAINED 296 TO 70766 SPURRED BY LOWER RATES THE DOW JONES UTILITY AVERAGE HIT A RECORD HIGH SURGING 145 TO 25145 THE MARKETS ARE RESPONDING TO THE PROBABILITY THAT EUROPE WILL BE ON THE ROAD TO SOME RECOVERY NOW THAT THE EXCHANGE RATE MECHANISM HAS DISAPPEARED IN ALL BUT NAME SAID STEFAN ABRAMS EQUITY STRATEGY DIRECTOR AT TRUST CO OF THE WEST WAYNE NORDBERG A PARTNER AT LORD ABBETT WARNED THAT THE STOCK RALLY WAS LESS ENTHUSIASTIC THAN ONE LAST WEEK WHEN INVESTORS ANTICIPATED GERMANY WOULD LOWER INTEREST RATES THOUGH GERMANY DID LOWER THE LOMBARD RATE LAST WEEK IT LEFT THE MORE SIGNIFICANT DISCOUNT RATE UNCHANGED SPARKING THE ASSAULT ON SOME OF EUROPE'S WEAKER CURRENCIES MR NORDBERG SAID HE SUSPECTED YESTERDAY'S MORE LIMITED STOCK RALLY REFLECTED CONCERNS THAT WHILE LOWER INTEREST RATES WILL HASTEN A EUROPEAN ECONOMIC RECOVERY THE REBOUND WILL BE MORE FRAGMENTED BECAUSE GERMANY CHOSE TO CONTINUE ITS STUBBORN FIGHT AGAINST INFLATION IT WILL BE A THREESPEED SYSTEM HE SAID INITIALLY NATIONS LIKE BRITAIN AND SPAIN WHICH LEFT THE ERM NEARLY A YEAR AGO WILL RECOVER FOLLOWED BY NATIONS LIKE FRANCE ONLY LATER WILL GERMANY WITH ITS POLICY OF MAINTAINING HIGH INTEREST RATES TO COMBAT INFLATION JOIN THE REBOUND WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 058 TO 10914 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2289 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1188 ISSUES ADVANCED AND 795 DECLINED BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE 1/8 OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 655 9308030076 930803 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE SCHOOLTOWORK LEGISLATION GOES TO CONGRESS TODAY THE LONGAWAITED CLINTON ADMINISTRATION BILL WOULD PROVIDE GRANTS TO STATES AND LOCALITIES TO DESIGN PROGRAMS TO HELP NONCOLLEGEBOUND STUDENTS PREPARE FOR JOBS SCHOOLS AND BUSINESSES WOULD WORK TOGETHER TO PROVIDE TRAINING STUDENTS TYPICALLY WOULD SELECT CAREER MAJORS BY THE 11TH GRADE GET WORK EXPERIENCE AND RECEIVE ONE YEAR OF TRAINING AFTER HIGH SCHOOL BESIDES GETTING DIPLOMAS GRADUATES WOULD RECEIVE CERTIFICATES SHOWING THEY HAD MASTERED CERTAIN OCCUPATIONAL SKILLS UNLIKE SOME ADMINISTRATION BILLS THIS MEASURE HAS BIPARTISAN SUPPORT SPONSORS INCLUDE THE TOPRANKING DEMOCRATS AND REPUBLICANS ON THE HOUSE EDUCATION AND LABOR COMMITTEE AND ITS ELEMENTARY SECONDARY AND VOCATIONAL EDUCATION SUBCOMMITTEE THE NATIONAL ALLIANCE OF BUSINESS AND AMERICAN FEDERATION OF TEACHERS ARE QUICK TO HAIL THE BILL AS A NEEDED STEP TO BUILD A HIGHSKILL HIGHWAGE WORK FORCE WOMEN'S WORK IS MORE RECESSIONPROOF THAN MEN'S IN THREE OF THE FIVE DOWNTURNS SINCE 1969 THE NUMBER OF WORKING WOMEN ACTUALLY ROSE WHILE MALE EMPLOYMENT TUMBLED THE BUREAU OF LABOR STATISTICS SAYS IN THE TWO MOST RECENT RECESSIONS JOBS HELD BY WOMEN DROPPED BUT FAR LESS THAN JOBS HELD BY MEN THE NUMBER OF WORKING WOMEN FELL 126000 IN THE 19901991 DOWNTURN WHILE THE RANKS OF WORKING MEN PLUMMETED 12 MILLION THE ANALYSIS PUBLISHED IN THE LABOR DEPARTMENT'S MONTHLY LABOR REVIEW NOTES THAT MEN WORK DISPROPORTIONATELY IN CYCLICAL INDUSTRIES LIKE CONSTRUCTION AND MINING WHILE MORE WOMEN WORK IN STABLE SERVICE INDUSTRIES AND GOVERNMENT AND WHILE EVEN SERVICES SUFFERED IN THE LAST RECESSION FASTGROWING HEALTH AND SOCIALSERVICES FIRMS EMPLOY UNUSUALLY HIGH NUMBERS OF WOMEN MILITARYBASE CLOSINGS CAN MEAN MORE NOT FEWER JOBS SOME 158100 JOBS HAVE BEEN CREATED AT MILITARY FACILITIES CLOSED BETWEEN 1961 AND 1990 MORE THAN REPLACING THE 93400 LOST DEFENSE JOBS ACCORDING TO STANDARD & POOR'S FORMER BASES HOUSE SCHOOLS FOR 160000 STUDENTS 75 INDUSTRIAL AND OFFICE PARKS AND 42 AIRPORTS NEW JERSEY'S RARITAN ARSENAL NOW AN INDUSTRIAL PARK EMPLOYS 13100 PEOPLE COMPARED WITH 2610 AS A MILITARY FACILITY THE DALLAS NAVAL AIR STATION IS CONSIDERED FOR USES RANGING FROM A HORSE RACETRACK TO A PRISON ORLANDO EAGERLY EYES THE NAVAL TRAINING CENTER THERE WHICH BOASTS A HOSPITAL LAKES AND A GOLF COURSE CHICAGO PUSHED TO CLOSE THE AIR FORCE RESERVE STATION AT O'HARE INTERNATIONAL AIRPORT SO IT COULD DEVELOP THE 356 ACRES COMMERCIALLY STILL STANDARD & POOR'S SAYS THERE IS LESS DEMAND FOR SHIPYARDS AND SOME FACILITIES OTHERS ARE SEVERELY POLLUTED AND THE GOVERNMENT HAS BECOME TOUGHER IN SETTING ITS PRICE CONGRESS WRESTLES AGAIN WITH MANDATORY RETIREMENT AGES FOR POLICE AND FIREFIGHTERS THEIR SEVENYEAR EXEMPTION FROM AGEDISCRIMINATION LAWS EXPIRES AT YEAR END BUT A HOUSE SUBCOMMITTEE TAKES UP LEGISLATION THIS WEEK TO EXTEND OR EVEN BROADEN IT COMPUTER CONSERVATION AS MUCH AS 40 OF PERSONAL COMPUTERS ARE KEPT RUNNING AROUND THE CLOCK WASTING ENOUGH ELECTRICITY TO KEEP AT LEAST 12 POWER PLANTS RUNNING THE MAGAZINE PC WORLD REPORTS SOME NEW COMPUTERS SAVE BY GOING INTO LOWENERGY SLEEP MODE WHEN NOT IN USE OF COURSE TURNING THE OFF SWITCH SAVES MORE WHEN DO YOU PUNT THE NATIONAL FOOTBALL LEAGUE AND RYAN MANAGEMENT GROUP PLAN SEMINARS FOR EXECUTIVES ON TEAM BUILDING COACHING AND OTHER BUSINESS ISSUES THE COURSES WILL FEATURE TEAM OFFICIALS AN OFFENSIVE COORDINATOR MAY DISCUSS CRISIS MANAGEMENT FOR INSTANCE THE NEW YORK JETS AND NEW ENGLAND PATRIOTS KICK OFF THE PROGRAM THIS FALL TEACHING BROTHERLY LOVE PHILADELPHIA OFFERS TAXI DRIVERS TRAINING ON CIVIC PRIDE AND CUSTOMER SERVICE LAST WEEK IT STARTED BRIEFING GRADUATES ON COMING CONVENTIONS JUST IN TIME FOR THE ARRIVAL OF 7000 MENNONITES FOR THEIR CHURCH CONVENTION THE PENNSYLVANIA PUBLIC UTILITY COMMISSION CONSIDERS REQUIRING THE TRAINING OF ALL CABBIES WORK IS A PAIN FOR MANY AMERICANS A NEW GOVERNMENT SURVEY FINDS THE PUBLIC HEALTH SERVICE REPORTS THAT 22 OF THE WORKING POPULATION COMPLAINS OF HAND DISCOMFORT TWOTHIRDS OF THEM SAY THE PROBLEM HAS PERSISTED FOR TWO YEARS OR MORE BACK PAIN AFFLICTS 18 OF WORKERS AND 7 EXPERIENCED ONTHEJOB INJURIES DURING 1988 THE SURVEY YEAR ABOUT ONE IN 10 WORKERS AGED 18 TO 29 SUFFERED INJURIES HALF THE RATE FOR WORKERS AGED 45 TO 64 FULLY 16 OF WORKERS SPEND FOUR OR MORE HOURS DAILY IN REPEATED STRENUOUS PHYSICAL ACTIVITY SOME 38 SAID THEY SPEND FOUR OR MORE HOURS BENDING OR TWISTING THEIR HANDS OR WRISTS SOME 30 SAID THEIR JOBS ENTAILED FOUR HOURS OR MORE OF REPEATED BENDING TWISTING OR REACHING AND 8 SPENT THAT MUCH TIME OPERATING VIBRATING MACHINERY THE PORTION OF BLUECOLLAR WORKERS WHO SMOKE DROPPED TO 384 FROM 465 A DECADE EARLIER AMONG WHITECOLLAR WORKERS ONLY 237 NOW SMOKE DOWN FROM 328 THE CHECKOFF THE TRENDS RESEARCH INSTITUTE IN RHINEBECK NY DUBS EXCESSIVE CORPORATESTAFF REDUCTIONS DUMBSIZING TOO MUCH TO SWALLOW TOWERS PERRIN SEES GROWING INTEREST IN GROUP UNIVERSAL LIFE INSURANCE PLANS OR GULPS 9308030075 930803 BUSINESS BRIEF NEW ENGLAND MUTUAL LIFE INSURANCE WASHINGTON PENSION FUND SUES OVER REAL ESTATE LOSS THE STATE OF WASHINGTON'S PUBLIC EMPLOYEE PENSION FUND SUED NEW ENGLAND MUTUAL LIFE INSURANCE CO AND ITS REAL ESTATE INVESTMENT UNIT CHARGING THAT ALLEGED SELFDEALING AND MISMANAGEMENT COST THE FUND 650 MILLION IN LOSSES IN A LAWSUIT FILED IN WASHINGTON STATE COURT THE 23 BILLION WASHINGTON STATE INVESTMENT BOARD SAID BOSTONBASED NEW ENGLAND MUTUAL AND ITS COPLEY REAL ESTATE ADVISORS INC UNIT WERE RESPONSIBLE FOR A DROP IN THE FUND'S REAL ESTATE PORTFOLIO ACCORDING TO THE LAWSUIT THE PENSIONFUND PORTFOLIO FELL TO LESS THAN 150 MILLION FROM 800 MILLION BETWEEN 1984 AND 1990 A SPOKESMAN FOR NEW ENGLAND MUTUAL DENIED THE COMPANY HAD MISMANAGED THE FUND'S REAL ESTATE INVESTMENTS THERE WAS NO SELFDEALING AND NO MISMANAGEMENT HE SAID THE INSURANCE COMPANY SAID THE VALUE OF THE REAL ESTATE FELL BECAUSE MUCH OF IT WAS LOCATED IN SOUTHERN CALIFORNIA AND NEW ENGLAND WHICH WERE BOTH HIT BY PROLONGED RECESSIONS 9308030074 930803 OTC FOCUS STOCKS ADVANCE ON CURRENCY ACCORD IN EUROPE AND FIRMING BOND PRICES BY THOMAS WEBER SPECIAL TO THE WALL STREET JOURNAL NEW YORK FIRMING BOND PRICES YESTERDAY AFTERNOON HELPED NASDAQ STOCKS SUSTAIN MORNING ADVANCES ON OPTIMISM OVER EUROPEAN ECONOMIES OVERTHECOUNTER STOCKS GOT AN EARLY BOOST FROM NEWS OF AN AGREEMENT TO LOOSEN EXCHANGERATE RESTRICTIONS FOR EUROPEAN CURRENCIES A MEASURE GENERALLY SEEN AS POSITIVE THE NASDAQ COMPOSITE INDEX GAINED 296 POINTS TO CLOSE AT 70766 AN INCREASE OF ABOUT 04 THE INDEX SLIPPED 254 POINTS ON FRIDAY ON THE NEW YORK STOCK EXCHANGE THE BROAD COMPOSITE INDEX ROSE 104 POINTS OR ABOUT 04 TO 24953 WHILE THE DOW JONES INDUSTRIAL AVERAGE SURGED 2152 POINTS TO 356099 NASDAQ ADVANCERS WON OUT OVER DECLINERS 1371 TO 1327 NATIONAL MARKET SYSTEM VOLUME TOTALED 191 MILLION SHARES OFF FROM 212 MILLION SHARES ON FRIDAY AS THE FLOOD OF SECONDQUARTER EARNINGS BEGAN TO TAPER OFF INVESTORS FOCUSED ON ECONOMIC FACTORS ESPECIALLY THE POTENTIAL FOR LOWER INTEREST RATES IN EUROPE AT A WEEKEND MEETING IN BRUSSELS EUROPEAN COMMUNITY FINANCE MINISTERS AGREED TO ALLOW WIDER FLUCTUATIONS IN THE CURRENCIES OF EUROPE'S EXCHANGE RATE MECHANISM THE MOVE IS SEEN AS GIVING CENTRAL BANKERS IN RECESSIONSTRUCK EUROPEAN NATIONS ROOM TO LOWER THE PRICE OF BORROWING I THINK THE HOPE IS THAT GOVERNMENTS NOW HAVE GREATER FLEXIBILITY TO RESPOND APPROPRIATELY TO WEAKNESS IN DOMESTIC ECONOMIES SAYS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH THIS WILL PROBABLY LEAD TO LOWER RATES LOWER INTEREST RATES IN EUROPEAN NATIONS SHOULD SPUR ECONOMIC GROWTH IN THOSE COUNTRIES CREATING A LARGER MARKET FOR US EXPORTS THE POTENTIAL FOR A SWELL IN EXPORTS PROMPTED OPTIMISM AMONG OVERTHECOUNTER INVESTORS IN US STOCKS BUT MR SOLLOWAY CAUTIONED THAT THE SLACKENED RESTRICTIONS ON EUROPEAN CURRENCIES COULD HAVE A SHORTTERM NEGATIVE IMPACT ON US MARKETS IT COULD WELL DRAW CAPITAL AWAY FROM USBASED SECURITIES AS INVESTORS MAKE BETS MORE DIRECTLY ON EUROPEAN STOCKS AND BONDS HE SAID LONGER TERM THOUGH IT'S BENEFICIAL AN AFTERNOON RECOVERY IN LONGTERM US TREASURYS HELPED STOCKS SOLIDIFY THEIR GAINS AS LONG AS RATES STAY DOWN THEY'RE NOT GOING TO BEAT UP ON THE MARKET SAID NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE/JOHNSON LANE CORP THE TREASURY'S 30YEAR BOND ERASED MORNING LOSSES AND ENDED WITH A YIELD OF ABOUT 655 BUT UNCERTAINTY ABOUT THE FATE OF THE FEDERAL BUDGET MAY HAVE HELD NASDAQ STOCKS BACK FROM FURTHER GAINS SAID LARRY KINNEY HEAD OF OTC TRADING AT SOUNDVIEW FINANCIAL GROUP A LOT OF PEOPLE ARE WAITING TO SEE WHAT HAPPENS WITH THIS BUDGET PACKAGE MR KINNEY SAID IN MIDAFTERNOON THE WHITE HOUSE SAID HOUSE AND SENATE NEGOTIATORS WERE CLOSE TO AN AGREEMENT BUT THERE WAS NO DECISION BEFORE THE MARKET CLOSED SOME RECENTLY BATTERED TECHNOLOGY STOCKS MOVED TO RECOUP LOSSES DELL COMPUTER JUMPED 7/8 TO 21 THE AUSTIN TEXAS COMPANY ROLLED OUT THREE NEW PERSONAL COMPUTER LINES AIMED AT SPECIFIC MARKETS SUCH AS BUSINESS CUSTOMERS LOOKING FOR INEXPENSIVE NETWORK PCS DELL ALSO ANNOUNCED AMENDMENTS TO ITS CREDIT AGREEMENTS THAT IT EXPECTS WILL ALLOW THE COMPANY TO AVOID DEFAULTS LAST MONTH WHEN DELL PROJECTED A LOSS FOR ITS FISCAL SECOND QUARTER IT WARNED THAT IT WAS IN DANGER OF DEFAULTING ON SOME CONDITIONS OF ITS CREDIT FACILITY ELSEWHERE AMONG PERSONAL COMPUTER STOCKS APPLE COMPUTER INCHED UP 3/4 TO 28 1/2 YESTERDAY MARKED THE OFFICIAL LAUNCH OF APPLE'S NEWTON MESSAGEPAD A HANDHELD COMPUTER APPLE ANNOUNCED THAT AMERICAN EXPRESS COCACOLA AND OTHER COMPANIES ARE PLANNING TO USE NEWTON TECHNOLOGY MERGER AGREEMENTS WERE THE HIGHLIGHT OF BANK STOCK TRADING CONSTELLATION BANCORP NEW BRUNSWICK NJ FINISHED UNCHANGED AT 10 3/8 ON 39 MILLION SHARES AFTER IT ENTERED A DEFINITIVE MERGER AGREEMENT WITH CORESTATES FINANCIAL CORESTATES WILL PAY 0206 OF ITS SHARES FOR EVERY SHARE OF CONSTELLATION CORESTATES BASED IN PHILADELPHIA FELL 1 1/2 TO 55 5/8 GREENWICH FINANCIAL REACHED FIRM AGREEMENT TO BE ACQUIRED BY FIRST FIDELITY BANCORP OF LAWRENCEVILLE NJ FOR 16 A SHARE GREENWICH FINANCIAL OF GREENWICH CONN ROCKETED 3 3/4 TO 15 WHILE FIRST FIDELITY WAS OFF 1/8 AT 47 1/8 IN NEW YORK STOCK EXCHANGE TRADING A MERGER DEAL ALSO PUSHED UP SHARES OF GOODY PRODUCTS WHICH WILL BE ACQUIRED BY NEWELL FOR 2475 A SHARE GOODY A KEARNY NJ MAKER OF HAIR ACCESSORIES CLIMBED 1 1/4 TO 24 1/8 NEWELL EDGED UP 1/2 TO 33 ON THE BIG BOARD BED BATH & BEYOND SLIPPED 5/8 TO 22 3/4 THE SPRINGFIELD NJ RETAILER UNVEILED PLANS FOR A PUBLIC OFFERING OF FOUR MILLION SHARES HELD BY WARREN EISENBERG AND LEONARD FEINSTEIN COCHIEF EXECUTIVES MERIS LABORATORIES SANK 1 1/2 TO 7 THE COMPANY REPORTED DISAPPOINTING SECONDQUARTER EARNINGS OF THREE CENTS A SHARE OFF FROM 11 CENTS A YEAR AGO ON MORE SHARES OUTSTANDING LATEST EARNINGS WERE HAMPERED BY A 1 MILLION CHARGE FOR LITIGATION EXPENSES CONNECTED WITH A SUIT FILED AGAINST THE COMPANY A SECURITIES AND EXCHANGE COMMISSION INQUIRY AND LEGAL ACTIONS THE COMPANY WILL PURSUE THE SAN JOSE CALIF COMPANY SAID THE SEC RECENTLY COMMENCED AN INQUIRY INTO MATTERS WHICH THE COMPANY BELIEVES IS RELATED TO CHARGES PREVIOUSLY MADE BY OTHERS AND WHICH HAVE PREVIOUSLY BEEN INVESTIGATED AND RESOLVED TO THE COMPANY'S SATISFACTION IN JULY MERIS SAID ITS FORMER PRESIDENT AND OTHERS HAD BEEN SUBPOENAED BY THE SEC NEW PRODUCT ANNOUNCEMENTS BUOYED SHARES OF SYNOPTICS COMMUNICATIONS WHICH CLOSED UP 3 AT 29 1/2 AMONG OTHER PRODUCTS SYNOPTICS SAID IT BEGAN SHIPPING A COMPUTER NETWORKING DEVICE KNOWN AS AN ASYNCHRONOUS TRANSFER MODE OR ATM SWITCH ATM TECHNOLOGY PROMISES SPEEDY TRANSMISSION OF VIDEO VOICE AND DATA OVER COMPUTER NETWORKS IDEXX LABORATORIES A WESTBROOK MAINE MAKER OF DETECTION DEVICES FOR ANIMAL HEALTH AND FOOD TESTING APPLICATIONS ROSE 1 7/8 TO 46 3/4 IDEXX'S BOARD CLEARED A 2FOR1 SHARE SPLIT 9308030073 930803 BUSINESS BRIEF STANHOME INC RESTRUCTURING CHARGE LED TO LOSS IN SECOND QUARTER STANHOME INC WESTFIELD MASS POSTED A SECONDQUARTER NET LOSS BECAUSE OF A 115 MILLION RESTRUCTURING CHARGE LINKED TO THE COMPANY'S PLANS TO REDUCE ITS WORLDWIDE WORK FORCE OF 4500 BY ABOUT 10 STANHOME HAD A LOSS OF 12 MILLION OR SIX CENTS A SHARE AFTER THE ONETIME CHARGE THE CHARGE WAS 58 CENTS A SHARE FOR THE 1992 QUARTER STANHOME HAD NET INCOME OF 114 MILLION OR 57 CENTS A SHARE THE MARKETER OF GIFTS AND COLLECTIBLES ATTRIBUTED THE LOSS TO POOR ECONOMIC CONDITIONS IN EUROPE AND UNFAVORABLE FOREIGN EXCHANGE RATES THE COMPANY SAID IT EXPECTS TO REDUCE COSTS OVER THE NEXT TWO YEARS BY ABOUT 7 MILLION OR 35 CENTS A SHARE ANNUALLY AFTER TAXES IF THE VOLUME ISN'T THERE AND THE PROFITS AREN'T THERE YOU HAVE TO TAKE STEPS TO REPOSITION THE COMPANY SAID ALEK DIAZ PRESIDENT AND CHIEF EXECUTIVE OFFICER 9308030072 930803 BUSINESS BRIEF QUANTUM CORP CONCERN'S NET TUMBLED 84 IN ITS FISCAL FIRST QUARTER QUANTUM CORP SAID FIERCE PRICE DISCOUNTING AND WEAK DEMAND FOR COMPUTER DISKDRIVE PRODUCTS DROVE DOWN EARNINGS FOR THE FISCAL FIRST QUARTER BY 84 FOR THE QUARTER ENDED JULY 4 QUANTUM OF MILPITAS CALIF SAID IT EARNED 34 MILLION OR EIGHT CENTS A SHARE IN THE YEARAGO PERIOD THE COMPANY HAD PROFIT OF 215 MILLION OR 41 CENTS A SHARE THE COMPANY SAID IT EXPECTS TO POST A LOSS IN THE SECOND QUARTER DUE TO FURTHER PRICE DECLINES NEW PRODUCTS WON'T MAKE A MEANINGFUL IMPACT ON RESULTS UNTIL THE THIRD QUARTER QUANTUM SAID QUANTUM'S EARNINGS WERE SLIGHTLY ABOVE THE LOW END OF ANALYSTS' ESTIMATES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY QUANTUM SHARES CLOSED AT 1050 DOWN 625 CENTS FIRSTQUARTER SALES ROSE 30 TO 4791 MILLION FROM 3685 MILLION A YEAR AGO QUANTUM SAID IT PLANS TO LAY OFF BETWEEN 5 AND 7 OF ITS WORK FORCE OF 2100 STARTING IN THE CURRENT QUARTER 9308030071 930803 EUROPE'S CURRENCY CRISIS CHANGING THE RULES EUROPE'S MONEY MOVE MAY PAVE WAY TO RISE IN THE GLOBAL ECONOMY IT ALLOWS LOWER INTEREST RATES BUT ALSO SADDLES BUSINESS WITH NEW UNCERTAINTIES DOUBTS OVER SINGLE CURRENCY BY LAWRENCE INGRASSIA AND PETER GUMBEL STAFF REPORTERS OF THE WALL STREET JOURNAL OUT OF CRISIS RECOVERY EUROPE'S NEARABANDONMENT OF ITS SYSTEM OF FIXED CURRENCIES IS A HUMILIATING DEFEAT FOR ITS POLITICAL LEADERS AND THROWS INTO DOUBT VISIONS OF GREATER UNITY BUT IT JUST MAY BE THE TONIC THE WORLD ECONOMY NEEDS BY DECIDING UNDER DURESS TO EXPAND THE RANGE IN WHICH THEIR CURRENCIES CAN FLUCTUATE AGAINST EACH OTHER THE EUROPEAN COMMUNITY MAY HAVE FINALLY LOOSENED THE RECESSIONARY STRAITJACKET THAT HAS CAUSED PAINFULLY HIGH UNEMPLOYMENT DESPITE STRAINING THE GERMANFRENCH POLITICAL ALLIANCE DECOUPLING THEIR ECONOMIES FROM GERMANY WILL ENABLE FRANCE AND ITS NEIGHBORS TO LOWER INTEREST RATES WEAKER CURRENCIES WILL FALL MAKING THOSE COUNTRIES' EXPORTS CHEAPER CONSUMER CONFIDENCE SHOULD IMPROVE AND THE PROSPECT OF IMPROVED SALES AND EARNINGS SHOULD PROMPT COMPANIES TO HIRE MORE WORKERS THAT IN FACT IS WHAT HAPPENED AFTER BRITAIN PULLED OUT OF THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM LAST SEPTEMBER AND LET THE POUND FALL AGAINST OTHER EUROPEAN CURRENCIES WHILE CONTINENTAL EUROPE REMAINED MIRED IN RECESSIONFORCED TO KEEP INTEREST RATES HIGH TO KEEP CURRENCIES FROM FALLING AGAINST THE MARKBRITAIN'S ECONOMY BEGAN GROWING THE UK HAS FOUND A PATH TO NONINFLATIONARY GROWTH SAYS KERMIT L SCHOENHOLTZ CHIEF ECONOMIST FOR SALOMON BROTHERS INTERNATIONAL LTD IN LONDON THAT IS GOING TO BECOME THE ACCEPTED MODEL OF INCREASING COMPETITIVENESS WITHOUT PASSING THROUGH INFLATION INTO WAGES AND PRICES IT'S A WONDERFUL THING EUROPE HAS BEEN LIBERATED ADDS RUDIGER DORNBUSCH AN ECONOMIST AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY IT MEANS THAT EUROPE IS FREER FOR INTERESTRATE CUTS WHICH WILL TURN '94 INTO RECOVERY RATHER THAN DEEPER RECESSION IT WON'T MAKE US RICH BUT IT'LL HELP THE MARKETS CERTAINLY SEEM TO THINK SO WITH STOCKS RISING THROUGHOUT EUROPE YESTERDAY AS MOST CURRENCIES FELL AGAINST THE MARK IN ANTICIPATION OF RATE CUTS STILL ON MOST OF THE CONTINENT THERE WAS NONE OF THE EUPHORIA THAT POURED OUT IN BRITAIN NEARLY A YEAR AGO EUROPEAN ECONOMISTS BELIEVE FRANCE AND ITS NEIGHBORS WILL BE RELUCTANT TO CUT RATES AS AGGRESSIVELY AS BRITAIN DID FOR FEAR OF REDUCING THE VALUE OF THEIR CURRENCIES TOO SWIFTLY AND DESTROYING THE SYSTEM ONCE AND FOR ALL EUROPE'S EXCHANGERATE MECHANISM MAY BE A TECHNICAL FINANCIAL DEVICE BUT IT STILL CARRIES DREAMS OF A BRIGHT FUTURE PARTICULARLY IN FRANCE AND GERMANY THE MAIN ISSUE IS WHETHER OTHERS FOLLOW THE UK EXAMPLE AND DROP RATES IMMEDIATELY OR FOLLOW THE SWEDISH EXAMPLE AND SEVER LINKS WITH THE SYSTEM BUT NOT DROP RATES SHARPLY SAYS BRIAN MULLANEY AN ECONOMIST AT MORGAN STANLEY INTERNATIONAL IN LONDON IN SPAIN WHICH IS STRUGGLING WITH AN UNEMPLOYMENT RATE OF MORE THAN 21 EMILIO ONTIVEROS EXECUTIVE DIRECTOR OF MADRID CONSULTANTS ANALISTAS FINANCIEROS INTERNACIONALES PREDICTS INTEREST RATES WILL FALL BUT NOT AS FAST AS NONRESIDENTS SEEM TO EXPECT YIELDS ON LONGTERM BONDS FELL IN FRANCE AND SPAIN INDICATING THAT TRADERS BELIEVE SHORTTERM RATES WILL HEAD LOWER WHATEVER HAPPENS TO RATES THE MASSIVE SPECULATIVE PRESSURE FROM FOREIGNEXCHANGE MARKETS THAT FORCED A CHANGE IN THE SYSTEM RENDERS IT ALMOST MEANINGLESS TO RESOLVE THE CRISIS GOVERNMENTS RADICALLY WIDENED THE TRADING BAND FOR CURRENCIES LETTING MOST OF THEM RISE OR FALL AS MUCH AS 15 ABOVE OR BELOW THEIR CENTRAL RATES INSTEAD OF THE NARROW 225 DEVIATION FOR MOST CURRENCIES PREVIOUSLY THIS PERMITTED POLITICIANS ON THE CONTINENT TO SAVE FACE BY SAYING THE SYSTEM IS INTACT IN WASHINGTON THE EUROPEAN MOVE WAS SEEN AS A MAJOR PLUS FOR THE GLOBAL ECONOMY AND FOR US EXPORTS WESTERN EUROPE ACCOUNTED FOR ABOUT 26 OF US EXPORTS LAST YEAR AND LOWER INTEREST RATES SHOULD AID ECONOMIC IMPROVEMENT AND GIVE US EXPORTS MORE STRENGTH THE DECISION SHOULD CONTRIBUTE TO ACCELERATED GROWTH AND THE CREATION OF JOBS IN EUROPE A US TREASURY OFFICIAL SAYS THE POSSIBLE DOWNSIDE IS THAT LOWER RATES IN EUROPE PROBABLY MEAN THAT EUROPEAN CURRENCIES WILL FALL VS THE DOLLAR RAISING THE PRICES OF US GOODS IN EUROPE FORMER FRENCH FOREIGN MINISTER JEAN FRANCOISPONCET CALLS THE DECISION TO ALLOW WIDER CURRENCY FLUCTUATIONS A DEVASTATING POLITICAL SETBACK TO EUROPEAN LEADERS THE TWO MEN WHO INVENTED THE EXCHANGERATE SYSTEM BACK IN 1979 FORMER FRENCH PRESIDENT VALERY GISCARD D'ESTAING AND FORMER WEST GERMAN CHANCELLOR HELMUT SCHMIDT ASSAILED THE DECISION AS A DE FACTO SUSPENSION OF THE MONETARY SYSTEM THAT IS EVIDENTLY IN CONTRADICTION WITH THE EUROPEAN COMMUNITY'S GOAL OF A SINGLE EUROPEAN CURRENCY BY THE END OF THE DECADE BRITISH PRIME MINISTER JOHN MAJOR A CRITIC OF THE EXCHANGERATE MECHANISM SAID THE TIMETABLE FOR ECONOMIC AND MONETARY UNION NOW LOOKS TOTALLY UNREALISTIC MORE BROADLY THE REFUSAL OF GERMANY LAST WEEK TO LOWER ITS DISCOUNT RATE ONE MORE TIME A MOVE THAT MIGHT HAVE PREVENTED THE CRISIS UNDERSCORES THE UNWILLINGNESS OF EUROPEAN COUNTRIES TO SACRIFICE NATIONAL ECONOMIC INTERESTS FOR THE GOOD OF ALL EUROPE THE GERMANS HOWEVER SAY THEY ARE DOING WHAT IS NECESSARY TO CONTROL INFLATION CAUSED BY THE HUGE SUBSIDIES REQUIRED TO REBUILD THE ECONOMY IN THE FORMER EAST GERMANY THIS CAUTION IN LOWERING INTEREST RATES HAD BECOME A MAJOR POINT OF FRICTION WITH FRANCE IN PARTICULAR WHICH HAS MADE A STRONG FRANC CALLED FRANC FORT LINKED TO THE MARK THE CENTERPIECE OF ITS ECONOMIC POLICY FOR THE PAST DECADE THAT POLICY SUFFERED AN IMMEDIATE BLOW AS THE WIDER TRADING BAND LED TO A 2 DROP IN THE FRANC'S VALUE AGAINST THE MARK YESTERDAY ALTHOUGH EDOUARD BALLADUR FRANCE'S PRIME MINISTER INSISTED THAT THE FRANC AND EUROPE HAVE BEEN PRESERVED MOREOVER THE FORCED CHANGE TO THE SYSTEM BRINGS ECONOMIC RISKS AND UNCERTAINTIES THE FIRST IS THAT CORPORATIONS BOTH IN AND OUT OF EUROPE COULD NOW FIND DOING BUSINESS IN EUROPE FAR LESS EASY AND PREDICTABLE THEY HAD GROWN USED TO THE STABILITY AND CERTAINTIES OF THE SYSTEM OVER THE PAST DECADE ENABLING THEM TO ALL BUT ELIMINATE EXCHANGERATE RISKS THE UNCERTAINTY IS NOW DEFINITELY A NEGATIVE AS A LARGE MULTINATIONAL CLEARLY WE ARE BETTER ABLE TO COPE THAN MANY SAYS MICHAEL PRIDEAUX A SPOKESMAN FOR BA T INDUSTRIES PLC THE TOBACCO AND FINANCIALSERVICES COMPANY BUT IT'S HARD TO SEE HOW THE FULL BENEFITS OF SINGLE MARKET CAN ACCRUE DURING A PERIOD OF CURRENCY INSTABILITY SOME US COMPANIES ALSO MAY DELAY PLANS THE POSSIBILITY OF SWINGS OF 15 ON EITHER SIDE HAS TO HAVE SOME DETERRENT ON PEOPLE INVESTING FOR THE LONGER TERM YOU CAN'T HEDGE AGAINST EXCHANGERATE CHANGES A COUPLE YEARS OUT NOTES C MICHAEL AHO DIRECTOR OF ECONOMIC STUDIES AT THE US COUNCIL ON FOREIGN RELATIONS IN THE SHORT RUN HOWEVER COMPANIES LIKE GILLETTE CO AND WALT DISNEY CO WILL HEDGE CURRENCIES TO PROTECT THEMSELVES AGAINST FLUCTUATIONS ANOTHER RISK IS THAT SOME GOVERNMENTS COULD RETURN TO THE OLD HABIT OF CHAOTIC COMPETITIVE DEVALUATIONS THAT THE SYSTEM AIMED TO ELIMINATE IN SOME RESPECTS THIS IS WHAT BRITAIN HAS DONE CAUSING ANGER AMONG ITS EC TRADING PARTNERS THE BIGGEST UNCERTAINTY IS WHAT THE CHANGES WILL MEAN TO GERMANY'S ECONOMY THE BIGGEST IN EUROPE SEVERELY WEAKENED BY THE COSTS OF REUNIFICATION IT IS ALREADY MIRED IN RECESSION YESTERDAY'S INCREASE IN THE VALUE OF THE MARK WITH THE PROSPECT OF MORE GAINS TO COME IF ITS NEIGHBORS LOWER INTEREST RATES IS THE LAST THING GERMANY NEEDS GERMAN EXPORTERS WHICH HAD BEEN EXPECTED TO PROVIDE THE ONLY STRONG POINT IN AN OTHERWISE BLEAK PICTURE FOR THE NEXT FEW MONTHS ARE NOW LIKELY TO BE AT A COMPETITIVE DISADVANTAGE SOME ECONOMISTS FRET GERMANY IS THE ONLY COUNTRY WITH A DOWNSIDE TO THIS SAYS ALISON COTTRELL A EUROPEAN ECONOMIST AT MIDLAND GLOBAL MARKETS IN LONDON STILL GERMAN EXPERTS ARE REACTING CALMLY TO THE NEWS JUERGEN PFISTER A SENIOR ECONOMIST AT COMMERZBANK AG IN FRANKFURT SAYS HE ISN'T CHANGING HIS FORECASTS OF A 2 DROP IN THE GERMAN ECONOMY THIS YEAR AND A 1 INCREASE IN 1994 WHILE HE ACKNOWLEDGES THAT THE STRENGTHENING OF THE MARK WILL HURT HE EXPECTS THE RISE TO BE RELATIVELY SMALL PARADOXICALLY THE BUNDESBANK MAY END UP BEING ABLE TO CUT ITS INTEREST RATES MORE RAPIDLY AS A CONSEQUENCE OF THE CURRENT TURMOIL THE BANK HAS TRADITIONALLY VIEWED A STRONG EXCHANGE RATE AS A POWERFUL ANTIINFLATIONARY DEVICE THAT IS AS EFFECTIVE AS HIGH INTEREST RATES THAT IS BECAUSE IMPORTS INTO GERMANY BECOME CHEAPER AS THE MARK GROWS STRONGER A STRONGER MARK COULD THUS COULD ENCOURAGE THE BANK TO EASE ITS STRICT MONETARY STANCE IT WILL BE EASIER FOR THE BUNDESBANK TO CARRY OUT ITS STABILITY POLICY IN GERMANY WITHOUT HAVING TO PAY ATTENTION TO THE OTHER EUROPEAN ECONOMIES SAYS HANSJOACHIM MASSENBERG ECONOMIST AT THE GERMAN FEDERAL BANKING ASSOCIATION THE KEY QUESTION FOR GERMANY AND ITS NEIGHBORS IS HOW RAPIDLY INTEREST RATES IN THE REST OF EUROPE WILL FALL IN FRANCE WHICH HAS A NEGLIGIBLE INFLATION RATE AND RAPIDLY RISING UNEMPLOYMENT THE PRESSURE FOR SUBSTANTIAL CUTS HAS BEEN GROWING EVEN BEFORE THE LATEST CURRENCY TURMOIL LEADING POLITICIANS HEADED BY SPEAKER OF PARLIAMENT PHILIPPE SEGUIN WERE URGING THE GOVERNMENT TO CUT THE FRANC'S LINK WITH THE MARK AND TAKE BIG STEPS TO RESTART THE ECONOMY JORGEN BIRGER CHRISTENSEN AN ECONOMIST AT DEN DANSKE BANK IN COPENHAGEN SAYS HE DOESN'T EXPECT MOST CENTRAL BANKS TO BE TOO AGGRESSIVE ABOUT CUTTING RATES GOVERNMENT OFFICIALS WANT TO AVOID VULNERABILITY TO NEW ATTACKS BY SPECULATORS THE EMPHASIS WILL BE ON STABILITY NOT HAVING NEW VOLATILITY HE SAYS ALTHOUGH THERE MIGHT BE SOME HESITANCY TO REDUCE RATES SHARPLY THE BRITISH EXAMPLE ARGUES IN FAVOR OF THAT STRATEGY AFTER ITS EMBARRASSING DEPARTURE FROM THE EXCHANGERATE MECHANISM LAST YEAR BRITAIN STEADILY BUT QUICKLY LOWERED ITS BASE LENDING RATE TO 6 FROM MORE THAN 10 THE RESULT MANUFACTURING OUTPUT HAS BEEN RISING SHARPLY AS THE POUND HAS DECLINED AGAINST MOST EUROPEAN CURRENCIES AND THE US DOLLAR THOUGH THE JOBLESS RATE IS STILL 104 EMPLOYMENT IS INCREASING RETAIL SALES ARE RISING AS BUYERS RETURN TO THE SHOPS AND BRITAIN'S ANNUAL INFLATION RATE RECENTLY SLIPPED TO 12 A 29YEAR LOW AS WAGE GROWTH HAS BEEN RESTRAINED AFTER FALLING 06 PERCENTAGE POINT LAST YEAR BRITAIN'S GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED WILL INCREASE 18 PERCENTAGE POINTS THIS YEAR PREDICTS MR MULLANEY OF MORGAN STANLEY IN BRITAIN'S FAVOR OF COURSE WAS THAT IT LEFT THE SYSTEM WHILE MOST OF ITS TRADING PARTNERS REMAINED GIVING IT A COMPETITIVE ADVANTAGE NOW IF EVERYONE OTHER THAN GERMANY LOWERS INTEREST RATES AS A RESULT OF THE CHANGE IN THE SYSTEM NO ONE WILL HAVE MUCH OF AN EDGE INDEED IN ITALY WHICH ENJOYED A CHANGE OF ECONOMIC FORTUNE AKIN TO BRITAIN'S AFTER IT ALSO LEFT THE MONETARY SYSTEM LAST SEPTEMBER AND DEVALUED ITS CURRENCY THERE ARE SOME FEARS ABOUT THE NEW ARRANGEMENT MARIO MARINI AN ECONOMIST AT MILAN'S ISTITUTO PER LA RICERCA SOCIALE WORRIES THAT ITALY'S COMPETITIVE GAINS COULD BE ERODED BY FRENCH MOVES STILL IN THE MEDIUM TERM IT COULD MEAN MORE RECOVERY IN EUROPE WHICH WOULD BE GOOD FOR ITALY MR MARINI SAYS ADDS MR MULLANEY ONE POSITIVE THING IS THAT GROWTH EVERYWHERE WILL BE BETTER SO THAT IT WILL LIFT ALL BOATS 9308030070 930803 BUSINESS BRIEF KELLOGG CO CONCERN RAISES CEREAL PRICES FOR THIRD TIME THIS YEAR KELLOGG CO BATTLE CREEK MICH SAID IT RAISED PRICES ON ITS BREAKFAST CEREALS SOLD IN THE US AN AVERAGE OF 21 THE INCREASE THE COMPANY'S THIRD THIS YEAR WENT INTO EFFECT SATURDAY A SPOKESMAN FOR KELLOGG THE WORLD'S LARGEST CEREAL MAKER SAID THE MOVE REFLECTS OVERALL BUSINESS COSTS HE STRESSED THAT THE INCREASE ISN'T RELATED TO CURRENT MIDWEST FLOODING WHICH HAS SPARKED SPECULATION OF FOOD INFLATION LATER THIS YEAR PRIMARILY BECAUSE GRAIN HARVESTS ARE EXPECTED TO BE POOR KELLOGG BOOSTED CEREAL PRICES AN AVERAGE OF 09 IN MAY FOLLOWING A 32 AVERAGE INCREASE LAST JANUARY IT IS UNUSUAL FOR CEREAL MANUFACTURERS TO RAISE PRICES MORE THAN TWICE A YEAR TYPICALLY OTHERS IN THE INDUSTRY QUICKLY FOLLOW SUIT KELLOGG HAS ABOUT A 39 SHARE OF THE 8 BILLION US READYTOEAT CEREAL MARKET 9308030069 930803 DUN & BRADSTREET UNIT SERVICE NEW YORK DUN & BRADSTREET INFORMATION SERVICES SAID IT WOULD BEGIN OFFERING SOME INFORMATION SERVICES TO CUSTOMERS THROUGH OFFICE DEPOT INC A DELRAY BEACH FLA OFFICE PRODUCTS RETAILING CHAIN THE UNIT OF DUN & BRADSTREET CORP SAID THIS WAS THE FIRST TIME THE COMPANY HAD OFFERED ITS BUSINESS INFORMATION THROUGH A RETAIL OUTLET D&B'S OFFERINGS INCLUDE BUSINESS FINANCIAL PROFILES MAILING LISTS BILLPAYING RECORDS TELEMARKETING SUPPORT AND PROFILES OF PROSPECTIVE CUSTOMERS 9308030068 930803 BUSINESS BRIEF OCCIDENTAL PETROLEUM CORP ASTRA ACQUIRES 20 STAKE IN SUBSIDIARY IN ARGENTINA OCCIDENTAL PETROLEUM CORP LOS ANGELES SAID IT AGREED TO SELL 20 OF THE STOCK OF ITS OCCIDENTAL EXPLORATION OF ARGENTINA INC UNIT TO ASTRA COMPANIA ARGENTINA DE PETROLEO SA FOR 24 MILLION RAY R IRANI OCCIDENTAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE TERMS OF ASTRA'S INVESTMENT WERE VERY ATTRACTIVE HE ADDED THAT OCCIDENTAL WOULD CONTINUE TO EXPLORE AND OPERATE IN ARGENTINA THROUGH A NEW SUBSIDIARY SHOULD ASTRA EXERCISE ITS OPTION 9308030067 930803 MUTUAL FUNDS NIBBLE AT EMERGING' RUSSIA DEBT BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL THEY'RE STILL TALKING AT FIDELITY INVESTMENTS ABOUT THE DAY THE OLD KGB HAND DROPPED BY THE BOSTON MUTUALFUND GIANT HOSTED A COUPLE OF RUSSIANS LAST YEAR INCLUDING A FORMER KGB MAJOR GENERAL WHO HAD HEADED SOVIET COUNTERINTELLIGENCE THE RUSSIANS WERE SELLING THEIR SERVICES AS CONSULTANTS SHOULD FIDELITY DECIDE TO INVEST IN THE FORMER WORKER'S PARADISE FIDELITY DECLINED BUT OTHER MUTUALFUND CONCERNS ARE STARTING TO NIBBLE AT RUSSIAN DEBT SENSING A POTENTIAL FOR A HOT EMERGING MARKET DOWN THE ROAD TEMPLETON GLOBAL INCOME AND TEMPLETON INCOME FUNDS HAVE BOUGHT OLD SOVIET BONDS SOME YIELDING AS MUCH AS 197 ANNUALLY TO THEIR 1996 MATURITY GT GREATER EUROPE FUND HAS BOUGHT SOME AND T ROWE PRICE HIGHYIELD FUND LAST WEEK BOUGHT A SMALL AMOUNT OF DEFAULTED RUSSIAN COMMERCIALBANK LOANS THE TIMING FOR T ROWE PRICE COULDN'T HAVE BEEN BETTER ON FRIDAY EUROPEAN CREDITOR BANKS ANNOUNCED THAT RUSSIA HAD AGREED IN PRINCIPLE TO MAKE A PAYMENT ON THE PASTDUE INTEREST FOR ITS COMMERCIAL BANK LOANS AND TO EVENTUALLY MAKE PAYMENTS ON ALL OVERDUE INTEREST ON THE LOANS YESTERDAY PRICES OF THE SCARCE RUSSIAN BANK LOANS SOARED TO 40 CENTS UP 10 CENTS FOR EACH DOLLAR OF FACE VALUE OF THE LOANS WHAT'S THE APPEAL OF SUCH HARDTOTRADE SECURITIES MANY IN DEFAULT FROM A FORMER COMMUNIST COUNTRY RACKED BY ECONOMIC AND POLITICAL TURMOIL AFTER THIS YEAR'S PRICE SURGE IN SOME LATIN AMERICAN BONDS NO MONEY MANAGER WANTS TO MISS OUT ON THE NEXT EMERGINGMARKET BOOM SO A FEW FUND COMPANIES ARE MAKING SMALL PURCHASES TO LEARN MORE RUSSIA IS THE MOTHER OF ALL EMERGING COUNTRIES DECLARES MICHAEL CONELIUS WHO OVERSEES EMERGINGMARKETS INVESTMENTS AT T ROWE PRICE HIGHYIELD THE LATIN MARKET HAS GOTTEN AHEAD OF ITSELF PEOPLE ARE LOOKING FOR THE NEXT BIG PLAY WHAT BETTER PLACE TO LOOK THAN RUSSIA HE ARGUES WITH ITS EXTENSIVE NATURAL RESOURCES AND FAIRLY WELLEDUCATED POPULATION STILL RUSSIAN DEBT IS TOO FAROUT FOR MANY US MUTUAL FUND CONCERNS AT SOME POINT IT'S GOING TO MAKE SENSE BUT WE'RE NOT THERE YET SAYS WAYNE LYSKI A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT FIDELITY GLOBAL BOND FUND MANAGER JUDY PAGLIUCA HASN'T BOUGHT RUSSIAN DEBT GIVEN THE LACK OF PROPERTY AND CONTRACT LAW IN RUSSIA TO PROTECT INVESTORS BUT EASTERN EUROPE INTRIGUES HER RECENTLY HER FUND BOUGHT THE NEW ISSUE OF A BOND FROM CEZ THE CZECH REPUBLIC ELECTRIC CONCERN THE BOND MATURES IN 1998 AND EVEN AFTER TAXES NO TREATY TO ELIMINATE DOUBLE TAXATION HAS BEEN SIGNED YET BETWEEN THE US AND THE CZECH REPUBLIC IT YIELDS 1444 SHE SAYS CLEARLY INVESTORS ARE LOOKING AT A LOT OF DEBT THAT ONCE SEEMED UNTOUCHABLE THE RALLY IN LATIN DEBT HAS SPILLED OVER INTO WHAT I WOULD CALL THE GARBAGE' SAYS MONEY MANAGER MARC FABER OF MARC FABER LTD IN HONG KONG GARBAGE HE DEFINES AS INCLUDING THE DEBT OF CUBA NORTH KOREA POLAND AND BULGARIA BESIDES RUSSIA AND HE HAS BEEN SCOOPING UP SOME OF IT SEVERAL GT CAPITAL FUNDS BOUGHT DEFAULTED POLISH DEBT WHICH HAS DONE VERY WELL FOR US SAYS SIMON NOCERA DIRECTOR OF GLOBAL FIXEDINCOME RESEARCH AT GT CAPITAL MANAGEMENT HE SAYS PRICES HAVE RISEN BECAUSE POLAND IS WAY AHEAD OF RUSSIA IN REBUILDING ITS ECONOMY INVESTORS HOPE THAT POLAND WILL EVENTUALLY RESTRUCTURE ITS DEBT PRICES OF RUSSIAN DEBT DECLINED ONLY SLIGHTLY LAST WEEK DESPITE THE COUNTRY'S TURMOIL AFTER THE CENTRAL BANK MADE AN UNEXPECTED STAB AT MONETARY REFORM EVEN A HAMHANDED ATTEMPT TO REIN IN MONETARY GROWTH AMOUNTS TO A POSITIVE MOVE FOR RUSSIAN DEBT BULLS SAY AND BECAUSE THE BONDS AND LOANS ARE DENOMINATED IN MAJOR EUROPEAN CURRENCIES THEY ARE INSULATED FROM THE RUBLE'S WEAKNESS RUSSIAN DEBTS INCLUDE 17 BILLION IN BONDS ISSUED IN EUROPE FROM 1988 TO 1990 BY VNESHEKONOMBANK OR BANK FOR FOREIGN ECONOMIC AFFAIRS THESE BONDS ARE STILL PAYING INTEREST AND MATURE IN THE NEXT FEW YEARS THEN THERE ARE 23 BILLION IN FACE VALUE OF DEFAULTED LOANS FROM EUROPEAN BANKS TO VNESHEKONOMBANK SOME DENOMINATED IN DOLLARS UNTIL RECENTLY SOVIETERA DEBTS WERE ROUGH ON THE CAPITALISTS INVESTING IN THEM BOTH THE BONDS AND THE BANK LOANS PLUNGED FROM INITIAL VALUES BUT RUSSIAN BOND PRICES HAVE DOUBLED SINCE APRIL WHEN PRESIDENT BORIS YELTSIN WON A REFERENDUM ON HIS REFORMS AND THE DEFAULTED BANK LOANS HAVE MORE THAN TRIPLED CLIMBING TO ABOUT 40 CENTS FOR EACH DOLLAR OF FACE VALUE UP FROM AS LOW AS 12 CENTS IN APRIL IN RUSSIA THE POLITICAL SITUATION HAS STABILIZED SAYS ALEXIS RODZIANKO MANAGING DIRECTOR OF EMERGING MARKETS TRADING AT CHEMICAL BANK IN NEW YORK THE TENTATIVE ACCORD ON RUSSIAN COMMERCIAL BANK LOANS HE SAYS IS A WAKEUP CALL TO INVESTORS TRADING DESKS AT BANKS AND INVESTMENT FIRMS WHICH HAVE ALREADY BOUGHT RUSSIAN DEBT ARE WORKING HARD TO CONVINCE MUTUAL FUND MANAGERS TO BUY THE BONDS FROM THEM AT A PROFIT MORGAN GRENFELL & CO A BRITISH INVESTMENT FIRM FORMED A FUND FOR INSTITUTIONS TO BUY DISTRESSED BANK LOANS TO BULGARIA POLAND AND RUSSIA MANY MUTUAL FUNDS CAN'T BUY BANK LOANS DIRECTLY BUT COULD BUY INTO THEM THROUGH THE FUND WHICH WILL HAVE A MINIMUM INVESTMENT OF 300000 AND BE DOMICILED IN IRELAND THE FUND'S INITIAL SUBSCRIPTION CLOSED ON FRIDAY AND IT EXPECTS TO HAVE AT LEAST 20 MILLION IN HAND BY TODAY IT HOPES TO TAKE IN MORE MONEY IN AUGUST WE'D BE DISAPPOINTED IF THE FUND'S SIZE ISN'T IN THE 30 TO 50MILLION RANGE SAYS PAUL LUKE MORGAN GRENFELL'S HEAD OF RESEARCH AND INVESTMENT STRATEGY MR CONELIUS AT T ROWE PRICE SAYS THAT IN BUYING DEFAULTED RUSSIAN BANK LOANS HE WAS BETTING THAT AT SOME POINT RUSSIA GOES THROUGH SOME KIND OF RESTRUCTURING BUT IT CAME THROUGH SOONER THAN HE EXPECTED THE DEAL STRUCK BETWEEN THE BANKS AND RUSSIA WOULD STRETCH OUT PAYMENTS ON THE RUSSIAN LOANS BUT THE COUNTRY AGREED TO EVENTUALLY PAY THEM OFF IN FULL OF COURSE THERE'S A LOT OF RISK GIVEN RUSSIA'S CHAOS THE T ROWE PRICE FUND BOUGHT ONLY 3 MILLION FACE VALUE OF THE LOANS LESS THAN 1 OF ITS ASSETS TEMPLETON BOUGHT VNESHEKONOMBANK 7 COUPON BONDS MATURING IN 1996 AND 7 1/2 COUPON BONDS OF 1996 BOTH DENOMINATED IN GERMAN MARKS THE PRICES HAVE RISEN TO 75 AND 7430 PER 100 IN FACE VALUE UP FROM 63 WHEN TEMPLETON BOUGHT THEM IN MAY IF RUSSIA WANTS TO CONTINUE ON THIS ECONOMIC REFORM PATH THEY WILL FIND THE MONEY TO PAY OFF THE BONDS SAYS SAMUEL FORESTER PRESIDENT OF TEMPLETON'S FIXEDINCOME DIVISION GT GREATER EUROPE A CLOSEDEND FUND THAT TRADES ON THE NEW YORK STOCK EXCHANGE ALSO BOUGHT SOME OF THE VNESHEKONOMBANK BONDS TO GET AN EQUITYLIKE EXPOSURE TO RUSSIA SAYS GT'S MR NOCERA BUT HE SAYS HE WOULDN'T BUY RUSSIAN DEBT NOW FOR GT'S EMERGING MARKETS INCOME FUND IN FACT MR NOCERA BASED IN SAN FRANCISCO DIDN'T INITIALLY REALIZE THAT GT'S LONDON OFFICE HAD BOUGHT RUSSIAN BONDS FOR ONE OF GT'S USREGISTERED STOCK FUNDS THEY COULD BE VERY ATTRACTIVE AT THESE LEVELS MR NOCERA SAYS BUT IS 18 WORTH THE RISK 9308030066 930803 BUSINESS BRIEFS BRITE VOICE SYSTEMS INC WICHITA KAN AND CANTON MASSBASED PERCEPTION TECHNOLOGY CORP'S STOCKHOLDERS APPROVED THEIR PROPOSED MERGER INSTEEL INDUSTRIES INC MERGED FOUR OF ITS UNITS EXPO WIRE CO RAPPAHANNOCK WIRE CO FORBES STEEL & WIRE AND FEDERAL NAIL INTO ONE COMPANY INSTEEL WIRE PRODUCTS EFFECTIVE SEPT 30 BAUSCH & LOMB INC ACQUIRED HEARING AID MAKER DAHLBERG INC GOLDEN VALLEY MINN FIELDCREST CANNON INC SOLD ITS CARPET AND RUG DIVISION TO MOHAWK INDUSTRIES INC FOR ABOUT 140 MILLION THE JOINT VENTURE OF EASTMAN KODAK CO'S STERLING WINTHROP DRUG UNIT AND ELF SANOFI A UNIT OF SOCIETE NATIONALE ELF AQUITAINE FRANCE FINALIZED PLANS TO DEVELOP AND MARKET TWO CARDIOVASCULAR COMPOUNDS WITH BRISTOLMYERS SQUIBB CO SPX CORP AN AUTO PARTS SUPPLIER ACQUIRED LOWENER MASCHINEN GMBH A LANGENFELD GERMANY MAKER OF SPECIALTY SERVICE TOOLS FOR THE EUROPEAN VEHICLE INDUSTRY TERMS WEREN'T DISCLOSED GRANITE CONSTRUCTION CO WON AN 11 MILLION CONTRACT FOR IMPROVEMENTS TO SACRAMENTO METRO AIRPORT CALIFORNIA THE WORK WILL BE DONE OVER THE NEXT YEAR 9308030065 930803 BUSINESS BRIEF DELL COMPUTER CORP CREDIT LINE IS RENEGOTIATED IN LIGHT OF EXPECTED LOSS DELL COMPUTER CORP AVERTING A POSSIBLE LOAN DEFAULT SAID IT RENEGOTIATED A 75 MILLION CREDIT LINE IN ANTICIPATION OF A LOSS IN ITS FISCAL SECOND QUARTER THE AUSTIN TEXAS PERSONALCOMPUTER MAKER SAID THE NEW 75 MILLION CREDIT FACILITY FROM A GROUP OF BANKS LED BY CITICORP REPLACES AN EARLIER LINE OF CREDIT SET TO EXPIRE NEXT JUNE LAST MONTH DELL WARNED THAT IT COULD FALL INTO TECHNICAL DEFAULT ON THE LOAN BECAUSE IT EXPECTS TO REPORT A LOSS OF 165 TO 185 A SHARE FOR ITS SECOND QUARTER WHICH ENDED SUNDAY THE NEW CREDIT LINE TAKES INTO ACCOUNT THE PROJECTED LOSS THE COMPANY SAID ADDING THAT IT MIGHT LEAD TO HIGHER INTEREST EXPENSE NO FURTHER DETAILS WERE DISCLOSED IN COMPOSITE TRADING YESTERDAY ON THE OVERTHECOUNTER MARKET DELL CLOSED AT 21 UP 875 CENTS 9308030064 930803 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JULY 18 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9308030063 930803 TWO GIVE UP PROFITS PAY FINES IN MOTEL 6 INSIDER TRADING CASE WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SAID TWO OF THE 18 PEOPLE ACCUSED OF ILLEGAL TRADING IN MOTEL 6 LP SECURITIES AGREED TO GIVE UP MORE THAN 51000 IN PROFITS AND PAY OVER 40000 IN FINES NEITHER LEONARD SCHAEN NOR JULIAN SCHOR ADMITTED OR DENIED WRONGDOING IN THEIR SETTLEMENTS MR SCHAEN COULDN'T BE REACHED MR SCHOR DECLINED TO COMMENT THE SEC SAID THE DEFENDANTS WERE PART OF A LARGE CIRCLE OF FRIENDS AND FAMILY MEMBERS WHO PROFITED FROM ADVANCE KNOWLEDGE THAT MOTEL 6 WAS TO BE ACQUIRED BY FRANCE'S ACCOR SA IN 1990 IN SEPTEMBER THE SEC FILED SUIT IN FEDERAL COURT IN NEW YORK ALLEGING THAT THE 18 DEFENDANTS MADE 35 MILLION FROM TRADING ON A TIP ABOUT THE ACQUISITION FROM AN EXECUTIVE VICE PRESIDENT OF THE HOTEL CHAIN MR SCHAEN A DALLAS RESIDENT AGREED TO GIVE UP 39207 IN PROFIT AND INTEREST AND PAY A 31102 PENALTY FOR INSIDER TRADING MR SCHOR OF CANOGA PARK CALIF AGREED TO GIVE UP 12007 IN PROFIT AND INTEREST PLUS PAY A 9525 PENALTY 9308030062 930803 TECHNOLOGY OTSUKA SHOKAI TO ADD IBM PRODUCTS TO SALES OF NEC CORP PCS SPECIAL TO THE WALL STREET JOURNAL TOKYO OTSUKA SHOKAI CO A MAJOR VENDOR OF NEC CORP PERSONAL COMPUTERS ALSO WILL BEGIN SELLING INTERNATIONAL BUSINESS MACHINES CORP PRODUCTS AS THE WAR FOR THE JAPANESE COMPUTER MARKET HEATS UP OTSUKA OFFICIALS SAID THE OFFICIALS SAID THE MOVE WAS PROMPTED BY CUSTOMER DEMAND NEC CONTROLS MORE THAN 50 OF THE JAPANESE PERSONALCOMPUTER MARKET BUT HAS FACED MOUNTING COMPETITION AND DISCOUNTING FROM FOREIGN MAKERS THE OTSUKA OFFICIALS SAID THE COMPANY IS NEITHER SHIFTING ITS BASIC STRATEGY NOR EXPECTING SALES OF NEC PCS AND OTHER OFFICE AUTOMATION EQUIPMENT TO SLIP BELOW 90 OF ITS REVENUE AS WE INCREASE SALES FROM OTHER VENDORS WE'LL ALSO INCREASE NEC SALES AN OFFICIAL SAID AN OTSUKA OFFICIAL SAID ITS ALPHALAND BUSINESS UNIT WILL OFFER INDIVIDUALS LOWPRICED PS/V AND THINKPAD PRODUCTS WHILE BUSINESS USERS ARE LIKELY TO BUY HIGHEREND COMPUTERS FROM IBM 9308030061 930803 TECHNOLOGY & HEALTH INTEL UNISYS SAID TO PLAN TO DEVELOP COMMERCIAL USES OF PARALLEL PROCESSING BY LAURIE HAYS AND JOHN R WILKE STAFF REPORTERS OF THE WALL STREET JOURNAL INTEL CORP AND UNISYS CORP 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 INTEL AND UNISYS DECLINED TO COMMENT THEIR DEVELOPMENT AGREEMENT WHICH IS SCHEDULED TO BE ANNOUNCED TODAY IN SANTA CLARA CALIF IS AN ATTEMPT BY INTEL TO MOVE THE BUILDING BLOCKS OF SUPERCOMPUTERS CURRENTLY AIMED PRIMARILY AT ACADEMIC AND SCIENTIFIC USES INTO A BROADER MARKET THAT'S ONLY STARTING TO BE TAPPED THE NEW MACHINES WILL CONTAIN INTEL'S PENTIUM MICROPROCESSORS AND WILL BE SCALABLE MEANING BUSINESSES CAN EXPAND THE MACHINES AS THEIR NEEDS GROW PARALLEL PROCESSING LASHES TOGETHER MANY MICROPROCESSORS TO PERFORM MANY TASKS AT THE SAME TIME FOR UNISYS THE AGREEMENT OFFERS THE BLUE BELL PA COMPUTER MAKER A POTENTIALLY SUCCESSFUL COMMERCIAL PRODUCT WITHOUT ALL OF THE DEVELOPMENT COSTS UNISYS WHICH HAS BEEN RESTRUCTURING TO DIVERSIFY ITS MAINFRAME BUSINESSES HAS BEEN A PLAYER IN MULTIPROCESSING TECHNOLOGY A PREDECESSOR OF PARALLEL PROCESSING THIS AGREEMENT GIVES UNISYS A COMPETITIVE PRODUCT TO SELL THAT THEY DIDN'T HAVE BEFORE THEY'RE GETTING IN LESS EXPENSIVELY SAYS JAMES CASSELL VICE PRESIDENT AND SERVICES DIRECTOR OF GARTNER GROUP A STAMFORD CONN CONSULTING GROUP THE INTELUNISYS VENTURE ISN'T EXPECTED TO BEAR FRUIT UNTIL 1995 AND IT WILL FACE STIFF COMPETITION FROM OTHERS WHO HAVE ALREADY ENTERED THE MARKET OR ARE PLANNING TO SOON AMONG LARGER COMPANIES THAT INCLUDES INTERNATIONAL BUSINESS MACHINES CORP WHICH IS PLANNING TO INTRODUCE A PARALLEL ENTRY BY YEAR END ONE PARALLELCOMPUTER MAKER THAT HAS ALWAYS FOCUSED ON THE COMMERCIAL MARKET IS TERADATA NOW A PART OF AMERICAN TELEPHONE & TELEGRAPH CO'S NCR UNIT IT HAS DONE WELL SELLING PARALLELDESIGN MACHINES TO BIG RETAILERS SUCH AS KMART CORP WHICH USE THEM TO COMB THROUGH VAST DATABASES OF SALES TRANSACTIONS TO SEARCH FOR SALES TRENDS AT THE SAME TIME MANY LARGE ESTABLISHED COMPUTER MAKERS SUCH AS TANDEM COMPUTERS INC HEWLETTPACKARD CO AND DIGITAL EQUIPMENT CORP ARE EMBRACING A PARALLEL APPROACH UNTIL NOW PARALLEL PROCESSING HASN'T BEEN USED MUCH IN BUSINESS COMPUTING BECAUSE THE SOFTWARE HASN'T EXISTED TO TAKE APART BUSINESS TASKS THE FUTURE USEFULNESS OF PARALLEL PROCESSING IN BUSINESS IS BELIEVED TO BE ENORMOUS FOR EXAMPLE IT COULD OFFER A CREDIT CARD COMPANY THE ABILITY TO QUICKLY AND CHEAPLY FIGURE OUT HOW MANY PEOPLE BOUGHT WATCHES ON TUESDAYS IN CHICAGO ACCORDING TO MR CASSELL EACH PROCESSOR CAN BE ASSIGNED ONE LEG OF THE TASK AND COME UP WITH ANSWERS MORE EFFICIENTLY THAN COULD TRADITIONAL COMPUTING METHODS CONVENTIONAL SUPERCOMPUTERS USED IN ENGINEERING WEATHER FORECASTING AND RESEARCH COST FROM 1 MILLION TO AS MUCH AS 30 MILLION AND USUALLY USE ONE TO 16 LARGE LIQUIDCOOLED PROCESSORS 9308030060 930803 BUSINESS BRIEF CIGNA CORP INSURER POSTS 32 DECREASE IN SECONDQUARTER EARNINGS CIGNA CORP PHILADELPHIA SAID POOR RESULTS AT ITS PROPERTY AND CASUALTY OPERATIONS PUSHED EARNINGS DOWN 32 AT THE LOW END OF ANALYSTS' EXPECTATIONS FOR THE SECOND QUARTER CIGNA REPORTED NET INCOME OF 88 MILLION OR 122 A SHARE COMPARED WITH 130 MILLION OR 181 A SHARE A YEAR EARLIER REVENUE EASED 19 TO 456 BILLION SHARES IN CIGNA WHICH REPORTED ITS EARNINGS AFTER THE MARKET CLOSED GAINED 625 CENTS TO FINISH AT 5950 IN YESTERDAY'S NEW YORK STOCK EXCHANGE TRADING THE INSURANCE AND FINANCIAL SERVICES CONCERN SAID POLICY PRICING AND AN IMBALANCE BETWEEN CLAIMS AND COSTS RESULTED IN A 45 MILLION LOSS AT ITS PROPERTY AND CASUALTY BUSINESS IN THE YEAREARLIER PERIOD THE UNIT POSTED A 14 MILLION LOSS IN TERMS OF THE MIDWESTERN FLOODS CIGNA SAID IT WILL HAVE EXPOSURE BUT IT HASN'T QUANTIFIED HOW MUCH EXPOSURE IT WILL HAVE TO THE DAMAGE 9308030059 930803 THE TAX AND BUDGET DEBATE DEFICITCUTTING BILL BEARS A RESEMBLANCE TO 1990 PREDECESSOR BUT DIFFERENCES MAY BE CRUCIAL REALISTIC ECONOMIC VIEW INCREASE IN TAXES ARE CITED BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IS IT REALLY 1990 ALL OVER AGAIN THE DEFICITREDUCTION BILL EMERGING FROM THE HOUSESENATE CONFERENCE COMMITTEE BEARS A SURPRISING RESEMBLANCE TO THE 1990 DEFICITREDUCTION BILL THAT CONGRESS FINALLY PASSED AND GEORGE BUSH TO HIS LATER REGRET SIGNED BOTH RAISE INCOME TAX RATES ON THE WEALTHIEST AMERICANS AND MAKE THEM LAY OUT MORE IN MEDICARE PAYROLL TAXES BOTH RELY HEAVILY ON MONEYSAVING CHANGES TO THE MEDICARE PROGRAM BOTH REWARD THE WORKING POOR BY SWEETENING THE EARNEDINCOME TAX CREDIT BOTH SET STRICT CEILINGS ON CONGRESSIONAL APPROPRIATIONS BUT NOT ON SPENDING FOR FEDERAL BENEFITS BOTH CLAIM TO REDUCE THE DEFICIT OVER THE NEXT FIVE YEARS BY NEARLY 500 BILLION AND THEN THERE IS THE GASOLINE TAX AFTER REJECTING A BIGGER ENERGY TAX THAN MR BUSH AND CONGRESSIONAL LEADERS NEGOTIATED CONGRESS ENDED UP RAISING GASOLINE TAXES BY ONLY A NICKEL A GALLON IN 1990 THIS TIME PRESIDENT CLINTON'S BIG BROADBASED ENERGY TAX GAVE WAY TO AN INCREASE OF 43 CENTS A GALLON THERE ARE AT LEAST SOME SUPERFICIAL SIMILARITIES SAYS ALLEN SCHICK A UNIVERSITY OF MARYLAND POLITICAL SCIENTIST AND A STUDENT OF THE FEDERAL BUDGET A BUNCH OF CLINTON'S SPENDING INITIATIVES HAVE GONE BY THE WAYSIDE AND THAT WAS THE MAIN DIFFERENCE WITH THE '90 DEAL BUT THE DIFFERENCES BETWEEN THE 1993 PLAN AND ITS 1990 ANCESTOR MAY BE MUCH MORE SIGNIFICANT BOTH ECONOMICALLY AND POLITICALLY FIRST THIS YEAR'S ALLDEMOCRATIC DEFICITREDUCTION PROGRAM RELIES FAR MORE ON TAX INCREASES PARTICULARLY ON UPPERINCOME AMERICANS THAN THE BIPARTISAN 1990 VERSION SECOND MR CLINTON SEEMS TO HAVE BEEN MORE SUCCESSFUL THAN MR BUSH WAS IN CONVINCING CONGRESS TO COUPLE DEFICIT REDUCTION WITH TAX BREAKS TO ENCOURAGE INVESTMENT INCLUDING A CAPITALGAINS TAX CUT FOR INVESTORS IN CERTAIN SMALL FIRMS AND THE CREATION OF TAXFAVORED EMPOWERMENT ZONES TO LURE JOBS TO POCKETS OF POVERTY AND BECAUSE THE 1993 PLAN IS BUILT ON MORE REALISTIC ECONOMIC ASSUMPTIONS AND OCCURS AT A MOMENT WHEN THE ECONOMY APPEARS TO BE STRENGTHENING THERE IS SOME REASON TO BELIEVE THAT IT IS MORE LIKELY TO ACHIEVE ITS STATED DEFICIT GOALS THAN THE 1990 PLAN WHICH RAN SMACK INTO RECESSION BUT THEN THE GOALS ARE MORE MODEST WHILE THE 1990 PLAN PROMISED TO GET THE DEFICIT DOWN TO 29 BILLION BY THE FIFTH YEAR THE 1993 PLAN AIMS AT GETTING IT TO ABOUT 210 BILLION BY THE FIFTH YEAR THIS YEAR'S DEFICIT IS ESTIMATED TO BE 285 BILLION I THINK YOU CAN FACTUALLY PROVE THAT THIS IS MORE CREDIBLE SAYS CLINTON AIDE GENE SPERLING CLINTON DEFICIT PROJECTIONS REST ON AN ECONOMIC FORECAST CLOSER TO THE CONSENSUS OF PRIVATE FORECASTS THAN THE OUTDATED ONE THAT WAS USED WHEN THE 1990 PLAN CAME TO A VOTE THIS TIME THERE ISN'T ANY RECESSION ON THE HORSOME CLINTON'S ADVISERS EXPECT THE ECONOMY TO DO BETTER OVER THE NEXT FIVE YEARS THAN THE BUDGET FORECAST REPUBLICAN CRITICS SAY THE ACHILLES'S HEEL OF THE CLINTONBACKED PLAN IS ITS TAX INCREASES ON THE RICH IF THE RICH HAVE MORE SUCCESS IN FERRETING OUT TAX SHELTERS THAN THE TREASURY EXPECTS THEN TAX RECEIPTS MAY FALL SHORT OF PROJECTIONS THE INDUCEMENT TO SHELTER AND THE LIKELIHOOD OF NOT GETTING ALL THE REVENUE THEY THINK THEY'RE GOING TO GET IS GREATER BECAUSE THEY HAVE MUCH HIGHER MARGINAL TAX RATE INCREASES SAYS MICHAEL BOSKIN WHO WAS MR BUSH'S ECONOMIC ADVISER AND TAX RECEIPTS ARE CRUCIAL BY CONGRESSIONAL BUDGET OFFICE CALCULATIONS THE 1990 PLAN RAISED TAXES BY ABOUT 158 BILLION OVER FIVE YEARS A COMPARABLE TALLY OF THE 1993 PLAN SHOWS ROUGHLY 245 BILLION IN TAX INCREASES WHILE THE UPPERBRACKET TAXPAYERS WERE TO COME UP WITH ABOUT 40 BILLION IN HIGHER INCOME TAXES UNDER THE 1990 PLAN WHICH TOOK THE TOP MARGINAL INCOME TAX RATE TO 31 THEY ARE SUPPOSED TO COME UP WITH 116 BILLION UNDER THE NEW PLAN WHICH TAKES THE TOP RATE TO 396 THE LATEST INTERNAL REVENUE SERVICE DATA SHOW THAT THE 1990 INCOME TAX RATE INCREASES DID AS INTENDED PRODUCE HIGHER REVENUES FROM THE RICHEST 850000 TAXPAYERS THOSE TAXPAYERS WITH INCOMES ABOVE 210000 OR SO REPORTED LESS INCOME OVERALL AND PAID LESS IN TAXES IN 1991 THAN IN 1990 A FACT THAT HAS FUELED THE ARGUMENT THAT HIGHER TAX RATES ARE COUNTERPRODUCTIVE BUT RECENTLY UPDATED IRS DATA SHOW THAT ALL OF THE DECLINE IN THEIR TAX PAYMENTS REFLECTS A STEEP DROP IN CAPITALGAINS INCOME AND THE CAPITALGAINS TAX RATE DIDN'T CHANGE IN 1990 TAXES PAID ON ORDINARY INCOME THE INCOME SUBJECT TO HIGHER TAX RATES ACTUALLY ROSE BY ALMOST 2 BILLION EVEN THOUGH THE TOTAL AMOUNT OF INCOME OTHER THAN CAPITAL GAINS DROPPED BY 15 BILLION THE RECESSION WASN'T THE ONLY REASON THE 1990 PLAN FELL SHORT OF THE MARK A CHANGE IN TREASURY ESTIMATES OF OVERALL TAX RECEIPTS IN 1991 ADDED ABOUT 114 BILLION TO THE FIVEYEAR DEFICIT TALLY THE SORT OF UNANTICIPATED TECHNICALITY THAT COULD RECUR MORE IMPORTANTLY FEDERAL HEALTHCARE SPENDING GREW FAR GREATER THAN ANYONE WAS PREDICTING BACK IN 1990 THE 1990 PLAN DIDN'T WORK BECAUSE IT DIDN'T CONTAIN ENTITLEMENT PROGRAMS THIS ONE DOESN'T EITHER COMPLAINS SEN PETE DOMENICI OF NEW MEXICO SENIOR REPUBLICAN ON THE BUDGET COMMITTEE BUT THIS YEAR'S DEFICIT PLAN DOES RELY ON MORE PESSIMISTIC PROJECTIONS OF HEALTHCARE COSTS SO PESSIMISTIC THAT ECONOMIST GAIL FOSTER OF THE CONFERENCE BOARD SPECULATES THAT THE ADMINISTRATION HAS BUILT IN THE POSSIBILITY OF A POSITIVE SURPRISE ARCHITECTS OF THIS YEAR'S ATTACK ON THE DEFICIT DELIBERATELY BORROWED ONE FEATURE FROM THE 1990 PLAN THAT SEEMS TO HAVE WORKED THE CEILINGS ON THE TOTAL SUM CONGRESS CAN APPROPRIATE FOR WHAT'S KNOWN AS DISCRETIONARY SPENDING EVERYTHING FROM PAYING SALARIES TO BUYING BULLETS OVER THE PAST THREE YEARS CONGRESS HAS KEPT RELATIVELY CLOSE TO THE CAPS APPROPRIATING ONLY 25 MORE THAN THE CAPS ALLOWED OVER THAT PERIOD BUT LAST TIME THE WHITE HOUSE AND CONGRESS AGREED TO BOOST DOMESTIC SPENDING AUTHORITY BY A HEFTY 12 BEFORE IMPOSING THE CAPS UNFORTUNATELY FOR MR CLINTON'S AMBITIOUS INVESTMENT SPENDING AGENDA THE NEW CAPS WHICH EXTEND THROUGH 1998 DON'T PROVIDE FOR SUCH A SURGE IN SPENDING IF CONGRESSIONAL APPROPRIATION COMMITTEES AGREE TO EVERY SPENDING CUT THAT MR CLINTON HAS PROPOSED MR SPERLING SAYS ABOUT 60 OF THE PROPOSED INVESTMENTS CAN STILL BE FUNDED UNDER THE CAPS 9308030058 930803 BUSINESS BRIEF HEALTHVEST INC HEALTHCARE CREDITORS VOTE TO ACCEPT REORGANIZATION HEALTHVEST INC SAID CREDITORS OF HEALTHCARE INTERNATIONAL INC VOTED TO ACCEPT HEALTHVEST'S PLAN OF REORGANIZATION FOR THE HOSPITALMANAGEMENT COMPANY UNDER THE REORGANIZATION PLAN THE TWO FIRMS BOTH BASED IN AUSTIN TEXAS WILL MERGE WITH HEALTHVEST SHAREHOLDERS RECEIVING 96 OF THE SURVIVING COMPANY AND HEALTHCARE'S SUBORDINATED BONDHOLDERS RECEIVING THE REMAINING 4 ALSO HEALTHVEST SAID IT MADE A NEW OFFER TO THE INTERNAL REVENUE SERVICE TO SETTLE 28 MILLION IN CLAIMS FOR 2 MILLION IN CASH AND A 3 MILLION SIXYEAR NOTE ADDING HEALTHVEST BELIEVES THAT THE IRS WILL FIND THIS NEW OFFER ACCEPTABLE HEALTHVEST WHICH OWNS 12 HEALTHCARE PROPERTIES SEVEN OF WHICH ARE LEASED TO OTHER OPERATORS INCLUDING HEALTHCARE IS HEALTHCARE'S BIGGEST CREDITOR IN ADDITION HEALTHVEST GAINED A CONTROLLING INTEREST IN HEALTHCARE'S STOCK BY ACQUIRING GREENERY REHABILITATION GROUP INC'S INTEREST IN HEALTHCARE A CHAIN OF 11 HOSPITALS THAT FILED FOR CHAPTER 11 PROTECTION IN 1991 9308030057 930803 INTERNATIONAL LOUIS VUITTON ACQUIRES COUTURE DESIGNER KENZO A WALL STREET JOURNAL NEWS ROUNDUP FRENCH LUXURYGOODS COMPANY LVMH MOET HENNESSY LOUIS VUITTON SA MAKING ANOTHER COUTURE ACQUISITION BOUGHT THE KENZO DESIGNER LINE IN A TRANSACTION VALUED AT ABOUT 80 MILLION BUT LIKE LVMH'S PURCHASE OF FASHION HOUSE CHRISTIAN LACROIX SA IN FEBRUARY THE KENZO TRANSACTION IS TAKING PLACE BETWEEN QUASIRELATED COMPANIES THE SELLERS OF KENZO ARE FINANCIERE TRUFFAUT SA AND SEBP THE HOLDING COMPANY FOR THE ARNAULT FAMILY BUSINESSES BERNARD ARNAULT IS CHAIRMAN OF LVMH A PUBLICLY TRADED COMPANY THAT HE CONTROLS MR ARNAULT TOOK CONTROL OF KENZO IN JUNE WHEN HIS SEBP BOUGHT A STAKE FROM JAPANESEBORN PARISBASED DESIGNER KENZO TAKADA AND SOME OF HIS ASSOCIATES YESTERDAY'S DEAL ESSENTIALLY KEEPS KENZO UNDER MR ARNAULT'S CONTROL YET TRANSFERS SOME OF THE FINANCIAL BURDEN TO LVMH SHAREHOLDERS LVMH'S STATUSCONSCIOUS STABLE OF PRODUCTS INCLUDES LOUIS VUITTON LUGGAGE AND MOET CHAMPAGNE IT ALSO OWNS THE GIVENCHY FASHION BUSINESS KENZO HAD ITS HEYDAY IN THE MID1980S PRODUCTS SOLD UNDER THE KENZO BRAND NAME INCLUDE CLOTHING ACCESSORIES AND PERFUMES IN 1992 THE KENZO GROUP HAD CONSOLIDATED SALES OF 796 MILLION FRANCS 1333 MILLION 9308030056 930803 BUSINESS BRIEF GREAT AMERICAN MANAGEMENT PUBLIC OFFERING IS PLANNED OF 3 MILLION VIGORO SHARES GREAT AMERICAN MANAGEMENT & INVESTMENT INC SAID IT INTENDED TO SELL THREE MILLION SHARES OF VIGORO CORP IN A PUBLIC OFFERING THE CHICAGO HOLDING COMPANY CONTROLLED BY INVESTOR SAM ZELL SAID THAT VIGORO A CHICAGOBASED MAKER OF FERTILIZER AND RELATED PRODUCTS ALSO WILL BUY 500000 SHARES OF ITS COMMON STOCK FROM GREAT AMERICAN GREAT AMERICAN SAID THAT AFTER THE PUBLIC OFFERING WHICH IS EXPECTED TO BE COMPLETED IN SEPTEMBER IT WILL HAVE ABOUT A 31 STAKE IN VIGORO COMPARED WITH 46 KIRK BREWER A COMPANY SPOKESMAN SAID GREAT AMERICAN EXPECTS TO RECORD A GAIN FROM THE OFFERING IN THE CURRENT QUARTER AND THAT THE PROCEEDS WOULD BE USED FOR CORPORATE PURPOSES HE DECLINED TO ELABORATE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY VIGORO SHARES CLOSED AT 2375 DOWN 125 CENTS 9308030055 930803 TECHNOLOGY BRIEF MEDTRONIC INC FIRM SAYS FDA UNIT BACKS APPROVAL OF HEART DEVICE MEDTRONIC INC SAID THE CIRCULATORY SYSTEMS ADVISORY PANEL OF THE FOOD AND DRUG ADMINISTRATION UNANIMOUSLY VOTED TO RECOMMEND THE APPROVAL OF ITS TRANSVENE LEAD SYSTEM WHICH ELIMINATES THE NEED FOR CERTAIN OPENCHEST SURGERY PROCEDURES THE TRANSVENE LEAD SYSTEM WHICH HAS BEEN IN US CLINICAL TRIALS SINCE 1991 IS IMPLANTED THROUGH THE VASCULAR SYSTEM TO DELIVER ELECTRICAL IMPULSES TO THE INNER HEART WALL FROM THE MEDTRONIC PCD DEVICE TO THE LOWER CHAMBER OF THE HEART THE PCD DEVICE OR PACERCARDIOVERTERDEFIBRILLATOR TREATS HEARTS THAT BEAT TOO FAST CURRENTLY LEAD SYSTEMS CLEARED IN THE US FOR THE PCD ARE ATTACHED TO THE OUTER SURFACE OF THE HEART DURING OPENCHEST SURGERY THE COMPANY SAID YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MEDTRONIC'S SHARES CLOSED AT 62 UP 125 ON VOLUME OF 583900 SHARES MORE THAN DOUBLE THE RECENT AVERAGE DAILY VOLUME MINNEAPOLISBASED MEDTRONIC SAID TRANSVENE ALREADY IS BEING MARKETED OUTSIDE THE US AND MOST IMPLANTS OF PCD DEVICES OUTSIDE THE US NOW USE TRANSVENE LEADS 9308030054 930803 WHO'S NEWS DART CHAIRMAN NAMES SON TO FILL PRIMARY HEIR'S POST LANDOVER MD DART GROUP CORP CHAIRMAN HERBERT HAFT APPOINTED HIS 34 YEAROLDSON RONALD TO BE DART PRESIDENT AND CHIEF OPERATING OFFICER FILLING ANOTHER JOB ONCE HELD BY HIS WOULDBE HEIR ROBERT WHO IS 40 AS REPORTED LAST WEEK THE ELDER MR HAFT 72 NAMED RONALD TO BE A DIRECTOR OF DART A HOLDING COMPANY WITH INTERESTS IN RETAILING AND REAL ESTATE AND THREE DARTCONTROLLED COMPANIES THAT ROBERT USED TO OCCUPY CROWN BOOKS CORP AND TRAK AUTO CORP AND CLOSELYHELD SHOPPERS FOOD WAREHOUSE RONALD HAFT IS PRESIDENT OF COMBINED PROPERTIES INC A REAL ESTATE CONCERN OWNED BY THE HAFT FAMILY IN THE HEAT OF A BITTER SUCCESSION BATTLE WITH ROBERT IN RECENT WEEKS HERBERT HAFT HAS STRIPPED ROBERT FROM ALL OF HIS FORMER POSITIONS AT THE FAMILY'S BUSINESSES AND CUT OFF HIS SALARY NONE OF THE HAFTS COULD BE REACHED FOR COMMENT 9308030053 930803 MARKETING & MEDIA WHITTLE SECURES FINANCING FOR EDISON SCHOOL PROJECT KNOXVILLE TENN WHITTLE COMMUNICATIONS LP SAID IT HAS SUCCESSFULLY SECURED FINANCING FOR A SCHOOLDEVELOPMENT PROJECT IN AN AGREEMENT IN PRINCIPLE WITH PHILIPS ELECTRONICS NV AND ASSOCIATED NEWSPAPERS HOLDINGS LTD IN A NEWS RELEASE WHITTLE GAVE NO FIGURES FOR THE FINANCING OF ITS EDISON PROJECT A PLAN TO CREATE A LARGE FORPROFIT SCHOOL CHAIN THAT HAS BEEN SCALED BACK SHARPLY AFTER FAILED ATTEMPTS TO SECURE FUNDING WHITTLE OFFICIALS COULDN'T BE REACHED FOR FURTHER COMMENT WHITTLE SAID THAT PHILIPS AND ASSOCIATED ARE CONTINUING THEIR INITIAL LEVELS OF FUNDING OF EDISON WHILE CHRISTOPHER WHITTLE CHAIRMAN WAS INCREASING HIS SUPPORT PHILIPS IS A NETHERLANDS ELECTRONICS CONCERN ASSOCIATED IS BASED IN BRITAIN COMPANY OFFICIALS HAD SAID THAT WHITTLE WOULD USE 40 MILLION RAISED FROM PHILIPS AND ASSOCIATED AS WELL AS MR WHITTLE'S FUNDS TO SUPPORT A SCALEDBACK PROJECT BUT YESTERDAY'S STATEMENT LEFT IT UNCLEAR WHETHER ADDITIONAL FUNDS HAVE BEEN RAISED OR PROMISED TIME WARNER INC ANOTHER WHITTLE PARTNER WON'T PARTICIPATE FURTHER IN EDISON FUNDING WHITTLE SAID THE PARTNERSHIP ALSO SAID IT HOPES TO BEGIN OPERATING THE FIRST EDISON SCHOOL IN 1995 9308030052 930803 THE TAX AND BUDGET DEBATE SOCIAL PROGRAMS GAIN FAVOR AS PROBUSINESS ITEMS FALL BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS CONGRESS CONTINUES TO SCALE BACK PRESIDENT CLINTON'S AMBITIOUS INVESTMENT AGENDA IT IS ALSO TIPPING THE BALANCE TOWARD TRADITIONAL DEMOCRATIC SOCIAL PROGRAMS AT THE EXPENSE OF MORE PROBUSINESS INITIATIVES THE HIGHPROFILE CASUALTIES THIS YEAR HAVE BEEN AN INVESTMENT TAX CREDIT AND A STIMULUS BILL LADEN WITH PUBLICWORKS EXPENDITURES BUT FROM THE SAME WRECKAGE HOUSE AND SENATE NEGOTIATORS WOULD NOW SALVAGE A LANDMARK INCREASE IN THE EARNEDINCOME TAX CREDIT FOR THE WORKING POOR AND A SET OF SMALLER BUT STILL SIGNIFICANT INITIATIVES IN CHILD HEALTH WELFARE AND NUTRITION PROGRAMS THE BOTTOM LINE IS THAT THIS PACKAGE SUCCEEDS IN REDUCING THE BUDGET DEFICIT AND THE SOCIAL DEFICIT AT THE SAME TIME SAID ROBERT GREENSTEIN EXECUTIVE DIRECTOR OF THE CENTER ON BUDGET AND POLICY PRIORITIES FOR THOSE WHO LOOK AT THE FACT THAT THE PIECES ARE SMALLER IT IS TRUE BUT IT IS ALSO SAYING THAT THE PERFECT IS THE ENEMY OF THE GOOD FOR EXAMPLE IN THE CASE OF FOOD STAMPS THE FIVEYEAR COST PROJECTIONS BELIE THE FACT THAT THE ADMINISTRATION WOULD WIN A MAJOR EXPANSION OF BENEFITS FOR POOR FAMILIES WHO MUST SPEND A DISPROPORTIONATE SHARE OF THEIR INCOME ON HOUSING AND ALTHOUGH A NEW 1 BILLION FAMILY PRESERVATION PROGRAM IS ONLY TWOTHIRDS OF THE HOUSEPASSED FUNDING LEVEL THE PLAN WILL STILL GREATLY EXPAND THE FEDERAL RESOURCES AVAILABLE FOR THE TROUBLED CHILD WELFARE SYSTEM AMONG BUSINESS PROVISIONS THE AGREEMENT PRESERVES MOST OF A TARGETED CAPITALGAINS TAX BREAK AIMED AT SMALL CONCERNS AND IN FINAL NEGOTIATIONS HIGHTECH COMPANIES SUCCEEDED IN EXTENDING THE RESEARCHANDEXPERIMENTATION TAX CREDIT INTO MID1995 BUT IN THE COMPETITION FOR DOLLARS LAWMAKERS HAD TO SCALE BACK SUBSTANTIALLY THE SMALLBUSINESS EXPENSING PROVISION THAT THE ADMINISTRATION HAD HOPED TO DELIVER AND THE FINAL DEPRECIATION RULES UNDER THE ALTERNATIVE MINIMUM TAX WOULD HELP SHORTLIVED ASSETS COMMUNICATIONS EQUIPMENT FOR EXAMPLE BUT WOULD PROVIDE LESS RELIEF THAN HEAVYCAPITAL INDUSTRIES LIKE STEEL AND PAPER HAD HOPED FOR OVERALL THE COMBINED EXPENSING DEPRECIATION AND RESEARCH CREDITS ADOPTED BY THE HOUSE AND EMBRACED BY THE ADMINISTRATION PROMISED AN ESTIMATED 296 BILLION IN TAX BREAKS OVER FIVE YEARS BY COMPARISON THE AGREEMENT NOW OFFERS LESS THAN HALF THAT AND THOUGH REAL ESTATE SEPARATELY WON IMPORTANT CONCESSIONS OF ITS OWN HIGHTECH INDUSTRIES REMAINED HESITANT YESTERDAY ABOUT GIVING THEIR FULL COMMITMENT TO THE AGREEMENT THIS IS NOT A BIG TAXINCENTIVE PROGRAM IT IS DEFICIT REDUCTION SAID HOUSE MAJORITY LEADER RICHARD GEPHARDT LAST NIGHT AND THE MISSOURI DEMOCRAT ARGUED THAT THE EXPANDED EARNEDINCOME TAX CREDIT BY REWARDING WORKING FAMILIES MUST BE SEEN AS A MAJOR STEP TOWARD WELFARE REFORM ITSELF A GOAL OF THE SMALLBUSINESS LOBBY DEMOCRATS CLEARLY PUT A MAJOR PRIORITY ON PROTECTING THEIR SOCIAL AGENDA IN ORDER TO ASSURE LIBERAL SUPPORT IN THE HOUSE THE DECISION LAST WEEK TO HOLD THE GASOLINETAX INCREASE TO 43 CENTS A GALLON SET ALL SIDES SCRAMBLING FOR DOLLARS BUT TAKEN TOGETHER THE SOCALLED SOCIAL INVESTMENTS INCLUDING EXPANSION IN THE EARNEDINCOME CREDIT 208 BILLION THE FOODSTAMP INCREASE 25 BILLION AND TAX BREAKS FOR INVESTMENT IN ECONOMICALLY DISTRESSED EMPOWERMENT ZONES 35 BILLION ARE ONLY MARGINALLY DIFFERENT FROM WHAT HAD BEEN PROPOSED WHEN A HIGHER GASOLINE TAX OF 65 CENTS A GALLON WAS PROPOSED THE FIERCEST SKIRMISHING CAME IN HEALTH CARE THE WHITE HOUSE IN EFFECT ASKED LAST WEEK FOR AN ADDITIONAL 2 BILLION IN SAVINGS FROM MEDICARE TO BE USED IN EFFECT TO PAY FOR ITS OWN SOCIAL AGENDA THE DEMANDS MET RESISTANCE FROM A DIVIDED ENERGY AND COMMERCE COMMITTEE LEADERSHIP THE SUBSEQUENT MANEUVERING ILLUSTRATED THE COMPETITION BETWEEN THE PRESIDENT'S INVESTMENT PRIORITIES AND THOSE OF HIS FELLOW DEMOCRATS REP HENRY WAXMAN D CALIF A MAJOR FORCE IN HEALTH POLICY WANTED ALMOST 900 MILLION MORE IN SPENDING FOR A VARIETY OF MEDICAID EXPENDITURES INCLUDING A LARGER CHILDIMMUNIZATION PROGRAM THAN THE WHITE HOUSE WAS READY TO SETTLE FOR AND A 300 MILLION INITIATIVE TO HELP STATES LIKE CALIFORNIA PAY FOR EMERGENCY HEALTH CARE FOR IMPOVERISHED UNDOCUMENTED ALIENS THIS LAST PROPOSAL WAS ABANDONED AFTER PRESSURE IN PART FROM ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL D MICH WHO SHOWED UP AT NEGOTIATIONS YESTERDAY WITH A DIFFERENT AGENDA FROM MR WAXMAN BUT MR WAXMAN SALVAGED 400 MILLION IN NEW PROPOSALS INCLUDING EXPANDING MEDICAID EXPENDITURES IN PUERTO RICO AND FOR THE TREATMENT OF TUBERCULOSIS IN ADDITION THE CHILDIMMUNIZATION PROGRAM WOULD COST AN ESTIMATED 500 MILLION OR 200 MILLION MORE THAN THE ADMINISTRATION HAD ACCEPTED LAST WEEK THE CALIFORNIAN ALSO WON AN ADDITIONAL 85 MILLION FOR STOCKPILING VACCINES I CAN'T SAY I'M DELIGHTED MR WAXMAN SAID BUT UNDER THE CIRCUMSTANCES WE DID AS WELL AS WE COULD 9308030050 930803 BUSINESS BRIEF FIRST FIDELITY BANCORP BANK SIGNS PACT TO ACQUIRE GREENWICH FINANCIAL CORP FIRST FIDELITY BANCORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE GREENWICH FINANCIAL CORP FOR 419 MILLION WHICH WILL EXPAND ITS OPERATIONS IN THE CONNECTICUT AREA IN LATE OVERTHECOUNTER TRADING YESTERDAY SHARES OF GREENWICH FINANCIAL JUMPED 375 TO CLOSE AT 15 A SHARE FIRST FIDELITY IN LAWRENCEVILLE NJ SAID IT WILL PAY GREENWICH FINANCIAL'S SHAREHOLDERS 16 A SHARE IN CASH GREENWICH FINANCIAL IN GREENWICH CONN IS A THRIFT HOLDING COMPANY WITH 413 MILLION IN ASSETS AND THE PARENT OF GREENWICH FEDERAL SAVINGS & LOAN THE ACQUIRED COMPANY WILL BE MERGED WITH FIRST FIDELITY'S CONNECTICUT UNIT UNION TRUST CO OF STAMFORD THE ACQUISITION IS EXPECTED TO CLOSE IN THE FOURTH QUARTER OF 1993 AND WILL ADD TO FIRST FIDELITY'S PERSHARE EARNINGS IN 1994 THE COMPANY SAID FIRST FIDELITY A BANKING CONCERN HAS 323 BILLION IN ASSETS 9308030048 930803 WHAT'S NEWS WORLDWIDE NATO THREATENED TO LAUNCH AIR ATTACKS AGAINST BOSNIA'S SERBS THE US AND ITS NATO ALLIES AGREED IN PRINCIPLE TO AN AMERICAN PROPOSAL TO USE AIR ATTACKS TO BREAK THE SIEGE OF SARAJEVO A STATEMENT ISSUED IN BRUSSELS WARNED THE SERBS THAT IN THE EVENT THAT THE STRANGULATION OF SARAJEVO AND OTHER AREAS CONTINUES STRONGER MEASURES INCLUDING AIR STRIKES WOULD BE TAKEN BUT MANY ISSUES REMAIN UNRESOLVED INCLUDING WHAT TARGETS WOULD BE ATTACKED AND WHETHER THE UN OR NATO WOULD DIRECT THE OPERATION THE STATEMENT DIRECTS NATO PLANNERS TO URGENTLY DRAW UP OPERATIONAL OPTIONS FOR AIR STRIKES DEFENSE SECRETARY ASPIN IS SCHEDULED TO MEET TODAY WITH MEMBERS OF THE JOINT CHIEFS OF STAFF TO DISCUSS THE US MILITARY ALTERNATIVES IN BOSNIA POLICE EVACUATED ABOUT 8000 RESIDENTS IN SOUTH ST LOUIS WHERE THE RIVER DES PERES EMPTIES INTO THE MISSISSIPPI BECAUSE OF WORRIES THAT 51 PROPANE TANKS FLOATING IN FLOOD WATERS COULD EXPLODE FIVE OF THE BOBBING TANKS EACH HOLDING 30000 GALLONS OF THE VOLATILE LIQUID WERE SAID TO BE LEAKING CHRISTOPHER HELD OUT HOPE THAT THE LATEST FIGHTING IN SOUTHERN LEBANON COULD BE USED TO GENERATE A NEW BURST OF ENERGY FOR THE MIDEAST PEACE PROCESS THE SECRETARY OF STATE HELD TALKS WITH EGYPT'S PRESIDENT MUBARAK IN ALEXANDRIA JOHN DEMJANJUK CAN'T RETURN TO THE US WHILE HE APPEALS HIS 1986 EXTRADITION TO ISRAEL THE JUSTICE DEPARTMENT SAID ADDING THAT THE RETIRED OHIO AUTO WORKER'S EXTRADITION DENATURALIZATION AND DEPORTATION REMAIN VALID ISRAEL'S SUPREME COURT LAST WEEK RULED THERE WAS INCONCLUSIVE EVIDENCE HE WAS NAZI CAMP GUARD IVAN THE TERRIBLE A MICHIGAN COUPLE ENDED THEIR CUSTODY BATTLE FOR A TWOYEAROLD GIRL THEY HAD RAISED SINCE SHE WAS TWO WEEKS OLD JAN AND ROBERTA DEBOER TURNED THE CHILD JESSICA OVER TO AN ATTORNEY FOR THE BIOLOGICAL PARENTS DAN AND CARA SCHMIDT THE TRANSFER WAS ORDERED BY MICHIGAN'S SUPREME COURT AND UPHELD BY THE US SUPREME COURT A FLORIDA TEENAGER TESTIFIED THAT SHE NEVER WANTS TO SEE HER BIOLOGICAL PARENTS AGAIN AS HER DIVORCE TRIAL OPENED IN SARASOTA THE GIRL KIMBERLY MAYS 14 IS SEEKING TO SEVER ALL TIES TO ERNEST AND REGINA TWIGG AND STAY WITH BOB MAYS WHO HAS RAISED HER SINCE SHE WAS SWITCHED IN THE HOSPITAL WITH ANOTHER BABY WHO LATER DIED IRAQ'S SADDAM HUSSEIN MARKED THE THIRD ANNIVERSARY OF HIS INVASION OF KUWAIT BY ASSERTING THAT THE IRAQI PEOPLE HAVE GOOD MEMORIES OF THE EVENT AND THAT THE MOTHER OF ALL BATTLES IS STILL GOING ON AN OFFICIAL BAGHDAD NEWSPAPER DEMANDED THE DEPARTURE OF KUWAIT'S RULING SABAH FAMILY CLINTON'S TOP HEALTH ADVISER SAID HE IS URGING THAT ABORTION SERVICES BE PRESERVED IN THE PRESIDENT'S HEALTH REFORM PROPOSAL TO BE UNVEILED NEXT MONTH IRA MAGAZINER TOLD A CONFERENCE THAT THE PROPOSED ABORTION COVERAGE WOULDN'T INTERFERE WITH STATE LAWS ON FUNDING OF ABORTIONS AND WOULDN'T REQUIRE DOCTORS OR HOSPITALS TO PERFORM ABORTIONS JESSE HELMS BECAME THE FIRST SENATOR TO SAY HE WOULD VOTE AGAINST RUTH BADER GINSBURG'S CONFIRMATION AS A SUPREME COURT JUSTICE ENDING HER CHANCES OF WINNING UNANIMOUS APPROVAL WHEN THE SENATE VOTES TODAY THE NORTH CAROLINA REPUBLICAN SAID HE OPPOSED GINSBURG BECAUSE OF HER SUPPORT FOR ABORTION AND GAY RIGHTS ARCHBISHOP TUTU CALLED FOR INTERNATIONAL PEACEKEEPERS TO INTERVENE IN SOUTH AFRICA TO STOP TOWNSHIP CLASHES FOLLOWING A WEEKEND OF VIOLENCE THAT LEFT MORE THAN 90 BLACKS DEAD TUTU SAID THE KILLINGS DEMONSTRATED BEYOND DOUBT THAT WE ARE INCAPABLE OF RESTORING LAW AND ORDER OURSELVES A TITAN IV ROCKET BLEW UP AFTER LAUNCH IN CALIFORNIA POSING A SETBACK FOR AN AIR FORCE PROGRAM TO LAUNCH SPY SATELLITES WITH THE POWERFUL UNMANNED ROCKET THE CAUSE OF THE FAILURE IS UNDER INVESTIGATION UN PEACEKEEPERS IN CAMBODIA BEGAN A SCHEDULED PULLOUT WITH ABOUT 850 TUNISIAN SOLDIERS LEAVING FOR HOME THE REST OF THE 20000MEMBER FORCE IS TO DEPART THIS FALL MEANWHILE THE UN ACCUSED THAI TROOPS OF STANDING BY SUNDAY AS CAMBODIAN KHMER ROUGE REBELS DETAINED 21 UN SOLDIERS NORTH OSSETIA'S SECURITY CHIEF BLAMED INGUSH SEPARATISTS FOR SUNDAY'S SLAYINGS OF THE MILITARY GOVERNOR AND MILITARY COMMANDER OF THE DISPUTED SOUTHERN RUSSIAN REGION WHERE RUSSIAN TROOPS ARE DEPLOYED 9308030047 930803 WANG REACHES PACT TO PLACE PREFERRED AND ISSUE WARRANTS LOWELL MASS WANG LABORATORIES INC REACHED AN AGREEMENT IN PRINCIPLE REGARDING THE ISSUANCE OF WARRANTS AS WELL AS THE PRIVATE PLACEMENT OF 60 MILLION OF 12 EXCHANGEABLE PREFERRED STOCK THE COMPUTER MAKER CALLED THE AGREEMENT ANOTHER IMPORTANT MILESTONE IN THE COMPANY'S EFFORTS TO QUICKLY EMERGE FROM CHAPTER 11 PROTECTION PROCEEDS FROM THE TRANSACTION WILL BE USED PRIMARILY FOR FUNDING REQUIREMENTS FOLLOWING CONFIRMATION OF WANG'S REORGANIZATION OUTLINE THE EXCHANGEABLE PREFERRED STOCK WILL BE PLACED WITH AN UNDISCLOSED GROUP OF INVESTORS THE COMPANY SAID THE WARRANTS WILL BE FOR THE PURCHASE OF 36 MILLION SHARES OF NEW COMMON STOCK THAT WANG PLANS TO ISSUE AS PART OF ITS REORGANIZATION WANG ALSO NOTED THAT LAST WEDNESDAY THE US BANKRUPTCY COURT IN BOSTON AUTHORIZED THE COMPANY TO ENTER AN INTERIM SECURED CREDIT FACILITY OF UP TO 50 MILLION WANG SAID IT HAS MADE PROGRESS IN DISCUSSIONS WITH PROSPECTIVE LENDERS IN OBTAINING PERMANENT POSTCONFIRMATION FINANCING TO FUND GENERAL CORPORATE NEEDS ON JULY 7 WANG JOINTLY FILED WITH ITS CREDITORS' COMMITTEE AN AMENDED REORGANIZATION PLAN IN THE BOSTON BANKRUPTCY COURT THE COURT HAS SCHEDULED A HEARING FOR THURSDAY AT WHICH TIME WANG WILL SEEK APPROVAL OF A PACKAGE OF DOCUMENTS THAT OUTLINES THE PLAN WANG SAID THE COURT'S APPROVAL OF THE OUTLINE WOULD CLEAR THE WAY FOR APPROVAL OF THE PLAN BY WANG'S UNSECURED CREDITORS AND STOCKHOLDERS FOR CONFIRMATION BY THE COURT AND FOR THE COMPANY'S EMERGENCE FROM CHAPTER 11 PROTECTION AS EARLY AS FALL OF THIS YEAR 9308030046 930803 BUSINESS BRIEF ASAHI BREWERIES LTD UNCONSOLIDATED PRETAX PROFIT INCREASED 74 IN FIRST HALF ASAHI BREWERIES LTD ONE OF JAPAN'S LARGEST BEER MAKERS REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT FOR THE FIRST HALF WAS UP 74 COMPARED WITH THE YEAREARLIER SIX MONTHS PRETAX PROFIT TOTALED 851 BILLION YEN 812 MILLION UP FROM 792 BILLION YEN NET INCOME MEANWHILE FELL 22 TO 248 BILLION YEN FROM 319 BILLION YEN SALES EDGED DOWN 23 TO 34901 BILLION YEN FROM 35726 BILLION YEN ASAHI BREWERIES' OVERALL BEER SALES REPRESENTING NEARLY 84 OF TOTAL REVENUE WERE OFF 07 COMPARED WITH THE SAME PERIOD LAST YEAR SLIPPING TO 29220 BILLION YEN FROM 29439 BILLION YEN A SPOKESMAN SAID THAT UNUSUALLY COOL WEATHER DURING THE WEEKLONG GOLDEN WEEK HOLIDAYS HURT BEER SALES EARLY AND THE LONG RAINY SEASON ADDED FURTHER DEPRESSED SALES THE SPOKESMAN SAID THAT COST CUTTING EFFORTS AND MEASURES TO INCREASE EFFICIENCY WERE EXPECTED TO KEEP PROJECTIONS FOR NET PROFIT AND PRETAX PROFIT IN LINE WITH PREVIOUS PREDICTIONS DESPITE THE REVISED SALES OUTLOOK 9308030045 930803 INTERNATIONAL BRIEF ABBEY NATIONAL PLC BRITISH BANK POSTS 11 RISE IN PRETAX PROFIT IN FIRST HALF ABBEY NATIONAL PLC A BRITISH BANK REPORTED AN 11 RISE IN PRETAX PROFIT FOR THE SIX MONTHS ENDING JUNE 30 AND SAID LOSSES INCREASED IN CONTINENTAL EUROPE PRETAX PROFIT TOTALED 301 MILLION 4473 MILLION UP FROM 270 MILLION A YEAR EARLIER BADDEBT PROVISIONS JUMPED 27 TO 176 MILLION FROM 138 MILLION ABBEY NATIONAL WHOSE STOCK STARTED TRADING IN FEBRUARY HAS INTERESTS IN MORTGAGE LENDING LIFE INSURANCE PENSIONS AND LONGTERM SAVINGS PRODUCTS AMONG OTHER THINGS LOSSES IN THE CONTINENTAL EUROPE AND OFFSHORE OPERATIONS DIVISION ROSE TO 86 MILLION COMPARED WITH 9 MILLION A YEAR EARLIER THE GROUP'S BADDEBT CHARGE WAS 104 MILLION COMPARED WITH 19 MILLION A YEAR EARLIER THE UNIT'S EARNINGS ARE REPORTED SEPARATELY FOR THE FIRST TIME 9308030044 930803 POLITICS & POLICY US AND NATO AGREE ON PLAN FOR AIR STRIKES BOSNIAN SERBS ARE WARNED OF MEASURES TO BREAK THEIR SIEGE OF SARAJEVO BY CARLA ANNE ROBBINS AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE US AND ITS NATO ALLIES AGREED IN PRINCIPLE TO AN AMERICAN PROPOSAL TO USE AIR STRIKES TO BREAK THE SIEGE OF SARAJEVO A STATEMENT ISSUED AFTER THE MEETING IN BRUSSELS ENDED EARLY THIS MORNING WARNS THE BOSNIAN SERBS BY NAME THAT NATO IS NOW PREPARING TO LAUNCH AIR STRIKES IN THE EVENT THAT THE STRANGULATION OF SARAJEVO AND OTHER AREAS CONTINUES BUT KEY DIFFERENCES STILL REMAIN ON VARIOUS QUESTIONS RANGING FROM WHETHER THE UNITED NATIONS OR THE NORTH ATLANTIC TREATY ORGANIZATION WOULD DIRECT THE OPERATION TO THE NATURE OF TARGETS THAT WOULD BE ATTACKED US OFFICIALS SUGGESTED THAT BROADER MILITARY ACTION PROBABLY WILL BE POSTPONED FOR AT LEAST A WEEK WHILE THESE ISSUES ARE BEING RESOLVED THE STATEMENT DIRECTS NATO PLANNERS TO EXAMINE THESE QUESTIONS AND TO URGENTLY DRAW UP OPERATIONAL OPTIONS FOR AIR STRIKES AS PART OF THAT PROCESS DEFENSE SECRETARY LES ASPIN IS SCHEDULED TO MEET TODAY WITH THE JOINT CHIEFS OF STAFF TO DISCUSS THE US MILITARY OPTIONS IN BOSNIA US OFFICIALS HOWEVER EMPHASIZED THAT EVEN BEFORE THOSE QUESTIONS ARE RESOLVED NATO PLANES COULD ATTACK SERBIAN POSITIONS IF THEY CONTINUED TO FIRE ON UN PEACKEEPING TROOPS THE AMERICANS WERE CLEARLY ELATED AT THE MEETING'S RESULTS PRESIDENT CLINTON WAS BADLY EMBARRASSED IN MAY WHEN HE FAILED TO PERSUADE THE ALLIES TO ACCEPT HIS PROPOSAL FOR LIMITED MILITARY ACTION IN BOSNIA RAISING SERIOUS QUESTIONS ABOUT HIS INTERNATIONAL LEADERSHIP WE GOT A DEAL I'D CALL THAT A SUCCESS SAID A SENIOR ADMINISTRATION OFFICIAL WHILE A BREAKTHROUGH FOR THE CLINTON ADMINISTRATION THE AGREEMENT WASN'T EASILY WON AND STILL MAY NEVER BE REALIZED EUROPEANS ARE CLEARLY HESITANT ABOUT TAKING MILITARY ACTION AND CONTINUE TO EXPRESS HOPE THAT THE THREAT OF AIR STRIKES WILL BE ENOUGH TO PERSUADE THE SERBS TO LOOSEN THEIR STRANGLEHOLD ON THE BOSNIAN CAPITAL AND TO NEGOTIATE IN GOOD FAITH IN CURRENT TALKS IN GENEVA OVER THE PARTITION OF BOSNIA THE NATO STATEMENT SAYS SPECIFICALLY THAT NATO WILL CONSULT WITH INTERNATIONAL NEGOTIATORS TO DETERMINE WHETHER MILITARY ACTION IS NECESSARY EQUALLY PROBLEMATIC IS THE UNRESOLVED QUESTION OF WHICH INTERNATIONAL BODY WILL DIRECT THE OPERATION THE CANADIANS AND FRENCH IN PARTICULAR RAISED STRONG OBJECTIONS AT YESTERDAY'S MEETING TO A US PROPOSAL TO PLACE NATO IN CHARGE WITH TWO OF THE LARGEST PEACEKEEPING CONTINGENTS ON THE GROUND IN BOSNIA AND FRENCH AND CANADIAN GENERALS DIRECTING THE PEACEKEEPING OPERATION THE TWO COUNTRIES HAVE RESISTED STRONGER MILITARY ACTION IN THE PAST AND THEY NOW WANT TO MAKE CERTAIN THAT NO ACTION WILL BE TAKEN WITHOUT THEIR AGREEMENT BOTH COUNTRIES ALSO HAVE EXPRESSED FRUSTRATION WITH WHAT THEY SEE AS A CONTRADICTORY AMERICAN INSISTENCE ON BROADER MILITARY ACTION WHILE THE CLINTON ADMINISTRATION CONTINUES TO REFUSE TO PLACE US TROOPS AT RISK ON THE GROUND MEANWHILE THE US HAS PRIVATELY CRITICIZED THE UN'S TIMIDITY AND RESISTANCE SO FAR TO TAKE A STRONG MILITARY STAND IN BOSNIA EVEN AFTER REPEATED ATTACKS ON PEACEKEEPERS PRESIDENT CLINTON YESTERDAY PLAYED DOWN AN EARLIER STATEMENT BY A STATE DEPARTMENT SPOKESMAN THAT THE US WOULD BE WILLING TO ACT UNILATERALLY IN BOSNIA IF THE ALLIES FAILED TO ACCEPT THE AIR STRIKE PROPOSAL I THINK WE'LL HAVE A COMMON POSITION MR CLINTON SAID I DON'T BELIEVE THAT THE ALLIES WILL PERMIT SARAJEVO TO EITHER FALL OR TO STARVE 9308030043 930803 BUSINESS BRIEF BIRMINGHAM STEEL CORP AMERICAN STEEL & WIRE CORP TO BE BOUGHT FOR 51 MILLION BIRMINGHAM STEEL CORP SAID IT AGREED TO BUY AMERICAN STEEL & WIRE CORP FOR AT LEAST 6 A SHARE OR ABOUT 51 MILLION IN STOCK AND CASH BY THE END OF THE YEAR IN ADDITION THE BIRMINGHAM ALA COMPANY WILL PAY AMERICAN STEEL'S ENTIRE DEBT WHICH WAS ABOUT 76 MILLION AS OF JUNE 30 A BIRMINGHAM STEEL SPOKESMAN SAID THAT UNDER TERMS OF THE AGREEMENT AMERICAN STEEL WILL OPERATE AS AN AUTONOMOUS UNIT AMERICAN STEEL BASED IN CUYAHOGA HEIGHTS OHIO HAS ABOUT 535 WORKERS THE FINAL PURCHASE PRICE DEPENDS ON THE PRICE OF BIRMINGHAM STEEL SHARES WHEN THE DEAL CLOSES IF BIRMINGHAM STEEL SHARES ARE TRADING AT A MINIMUM OF 23 A SHARE BIRMINGHAM STEEL WILL SWAP TWO MILLION SHARES OF ITS COMMON STOCK PLUS 52 MILLION IN CASH FOR THE 85 MILLION COMMON SHARES OUTSTANDING OF AMERICAN STEEL IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BIRMINGHAM STEEL SHARES CLOSED AT 23 DOWN 125 AMERICAN STEEL SHARES CLOSED AT 5625 UP 125 OR 29 IN COMPOSITE OVERTHECOUNTER TRADING 9308030042 930803 BUSINESS BRIEF NEWELL CO DEFINITIVE PACT IS REACHED TO ACQUIRE GOODY PRODUCTS NEWELL CO SAID IT AGREED DEFINITIVELY TO ACQUIRE GOODY PRODUCTS INC FOR 2475 A SHARE OR ABOUT 170 MILLION AS REPORTED THE COMPANIES ENTERED INTO A TENTATIVE AGREEMENT FOR THE ACQUISITION IN JUNE FREEPORT ILLBASED NEWELL WHICH SELLS HOUSEHOLD PRODUCTS TO RETAILERS CURRENTLY OWNS 135 OF GOODY'S COMMON STOCK OUTSTANDING GOODY OF KEARNY NJ MAKES HAIR AND TRAVEL ACCESSORIES AND OTHER PRODUCTS NEWELL SAID GOODY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER LEONARD GOODMAN AND OTHER MEMBERS OF THE GOODMAN FAMILY WHO TOGETHER OWN 43 OF THE COMPANY'S STOCK AGREED TO VOTE IN FAVOR OF THE TRANSACTION GOODY ALSO GRANTED NEWELL AN OPTION TO BUY AN AMOUNT OF AUTHORIZED UNISSUED STOCK EQUAL TO 199 AS PART OF A LOCKUP PROVISION WHICH RESTRICTS GOODY'S ABILITY TO SOLICIT A BETTER OFFER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE NEWELL SHARES CLOSED AT 33 UP 50 CENTS GOODY PRODUCTS SHARES CLOSED AT 24125 UP 125 IN NATIONAL OVERTHECOUNTER TRADING 9308030041 930803 REVIEW & OUTLOOK EDITORIAL THE NITTY GRITTY THE CLINTONROSTENKOWSKIMOYNIHAN TAX NEGOTIATIONS HAVE BEEN GOING THROUGH THE NITTYGRITTY AND WE'RE HERE TO EXPLAIN WHAT THAT WILL MEAN TO YOU AND TO THEM FOR FRESHMAN SENATOR RUSS FEINGOLD IT MEANS HIS BIG CHANCE TO KILL THE DREAD BOVINE SOMATOTROPIN BST IS A HORMONE THAT MAKES COWS GIVE MORE MILK A CAUSE UNPOPULAR AMONG COMPETITIONFEARING DAIRY FARMERS IN SENATOR FEINGOLD'S WISCONSIN INDEED HE BUILT HIS NAME RECOGNITION DEMAGOGING THE ISSUE AS A STATE SENATOR AND UPON REACHING THE BELTWAY IMMEDIATELY TRIED TO MAKE IT A NATIONAL ISSUE UNHAPPILY FOR THE SENATOR BUT HAPPILY FOR MILK CONSUMERS REPUBLICAN JACK DANFORTH FORCED A FLOOR VOTE AND SENATOR FEINGOLD LOST 6038 BUT A 12MONTH BAN ON COMMERCIAL USE OF BST HAS REAPPEARED IN THE BUDGET BILL UNDER SPONSORSHIP OF THE AGRICULTURE COMMITTEE NO SENATOR COULD FORCE A VOTE BECAUSE IT IS SAID TO SAVE MONEY ABOUT 15 MILLION NEXT YEAR IF COWS PRODUCE MILK MORE EFFICIENTLY WHAT PASSES FOR REASONING RUNS THE GOVERNMENT WILL END UP PAYING MORE IN PRICE SUPPORTS SO NOW SENATOR FEINGOLD IS THREATENING TO VOTE AGAINST THE WHOLE BUDGET UNLESS IT RETAINS THIS SILLY PROVISION THIS MILKMAIL IS SO BLATANT THAT IN ADDITION TO A MAJORITY OF THE SENATE THE BST BAN IS OPPOSED BY REPS JOHN DINGELL AND RICHARD GEPHARDT SENATOR TED KENNEDY HOUSE AGRICULTURE CHAIRMAN KIKI DE LA GARZA AND PRESIDENT CLINTON BUT AS OF THIS WRITING MR FEINGOLD WAS HOLDING THEM ALL HOSTAGE AFTER ALL WITHOUT HIS VOTE THE BUDGET WILL FAIL FOR TEXAS'S KIKI DE LA GARZA THE NITTYGRITTY MEANS A CHANCE TO STAND LIKE THE ALAMO AGAINST CUTTING THE 330 MILLION FOR MOHAIR WOOL WHICH ONCE UPON A TIME HAD SOMETHING TO DO WITH MILITARY UNIFORMS IT GOT THE AX IN THE SENATE BUT MR DE LA GARZA MADE SURE IT SURVIVED THE HOUSE AND THE LATEST WORD IS THAT HE'LL MAKE SURE PART OF IT SURVIVES IN THE FINAL BILL MR DE LA GARZA HAS ALREADY SAVED THE HONEY MONEY THE ONE SUBSIDY THAT CANDIDATE CLINTON PROMISED TO ZERO OUT NO DOUBT BECAUSE MOST BEE FARMERS ARE IN WESTERN STATES POPULATED BY REPUBLICAN SENATORS BUT MR DE LA GARZA WILL NOT GIVE UP ANY TURF EASILY EVEN IF IT'S MOSTLY IN UTAH SO HE MADE SURE THE HOUSE BILL PROPOSED ONLY A TOKEN 23 MILLION CUT IN THE PROGRAM FOR 199498 THE SENATE WENT FOR A 41 MILLION STING BUT THE FEDERAL HONEY POT WILL LIVE AGAIN THESE ARE ONLY A COUPLE OF EXAMPLES OF WHAT THE NITTYGRITTY MEANS TO THEM WHETHER OR NOT THESE INDIVIDUAL EXAMPLES MAKE THE FINAL CUT SIMILAR DEALS HAVE BEEN CUT ALL OVER CAPITOL HILL WITH SENATOR DAVID BOREN DESERTING THE 50VOTEPLUSGORE PASSAGE OF THE ORIGINAL BILL THE SWING VOTE NOW APPEARS TO BE ARIZONA'S DENNIS DECONCINI WE WILL PROBABLY NEVER KNOW HIS PRICE WE WERE LUCKY EVEN TO FIND OUT ABOUT HIS INTERVENTIONS WITH THE REST OF THE KEATING FIVE TO PROTECT A CROOKED S&L NOW WHAT THE NITTYGRITTY MEANS TO YOU YOUR TAX INCREASE WILL BE RETROACTIVE TO JANUARY 1 STRUGGLE AS THEY MIGHT THE CONFEREES JUST COULDN'T FIGURE OUT ANY OTHER WAY TO GET TO THEIR DEFICITCUTTING TARGETS THE LAST TIME INCREASES IN PERSONAL TAX RATES WERE MADE RETROACTIVE WAS DURING THE VIETNAM WAR THE JOHNSON ADMINISTRATION IMPOSED A SPECIAL SURTAX AND MADE IT RETROACTIVE FOR THE EXPRESS PURPOSE OF SLOWING DOWN AN OVERHEATED ECONOMY IT IS IN SHORT EXACTLY THE OPPOSITE OF WHAT'S NEEDED IN AN ECONOMY THAT'S GROWING TODAY AT A FEEBLE 16 ANNUAL RATE COME NEXT APRIL NOT SO INCIDENTALLY SIX MONTHS BEFORE THE NEXT ELECTION A LOT OF TAXPAYERS ARE LIKELY TO FIND THEMSELVES UNDERWITHHELD OR SINCE THE BIG TAX BOOSTS AFFECT UPPERINCOME TAXPAYERS AND THE FIRMS THEY DECLARE ON THEIR PERSONAL INCOME TAXES NEXT JANUARY OR SO THEY'LL HAVE TO DIG INTO CAPITAL OR TAKE OUT LOANS ON THE FINAL INSTALLMENT OF THEIR ESTIMATED TAXES THEY'LL HAVE TO COUGH UP THREE QUARTERS WORTH OF TAXES OUT OF ONE QUARTER'S INCOME FOR THAT COMPRESSED PERIOD A TAX RATE OF 75 OR SO THE CLINTON TREASURY HAS MAGNANIMOUSLY AGREED NOT TO IMPOSE PENALTIES OR INTEREST CHARGES ON THOSE WHO UNDERWITHHOLD THEIR TAXES IT'S EASY TO PREDICT THAT THE FIRST QUARTER OF 1994 WILL BE AN ECONOMIC BUMMER JUST AS THE FINAL QUARTER OF 1992 WAS INFLATED BECAUSE EVERYONE FROM MICHAEL EISNER TO HILLARY CLINTON WAS CASHING OUT INCOME TO BEAT THE EXPECTED TAX INCREASE THE ECONOMY WILL IN ANY RATE BE SUFFERING THE INCENTIVESTIFLING EFFECT OF HIGHER TAX RATES EVEN BEFORE THE DOUBLE WHAMMY OF RETROACTIVE INCREASES ECONOMIC EFFECTS ASIDE THERE IS THE ISSUE OF THE SIMPLE JUSTICE OF RETROACTIVE TAXATION IF YOU'RE GOING TO MAKE EVERYTHING RETROACTIVE TO JANUARY 1 AFTER ALL WHY STOP THERE WHY NOT CATCH THE MICHAEL EISNERS AND HILLARY CLINTONS BY MAKING IT DECEMBER 1 1992 OR MAYBE NOVEMBER 4 1992 WHEN BILL CLINTON'S ELECTION WAS REPORTED AND EVERYONE UNDERSTOOD TAXES WERE GOING UP COME TO THINK OF IT WHY NOT JUST REPEAL THE DECADE OF GREED WHEN BY MR CLINTON'S EXPRESSED VIEW HIGHINCOME TAXPAYERS DIDN'T PAY THEIR FAIR SHARE IF THE CLINTONROSTENKOWSKIMOYNIHAN CONFERENCE CAN MAKE TAXES RETROACTIVE TO LAST JANUARY 1 WHY NOT TO OCTOBER 1 1981 THE DATE OF THE FIRST TRANCHE OF THE REAGAN TAX CUTS SEE RELATED LETTER LETTERS TO THE EDITOR EXPLAINS POSITION ON BUDGET VOTE WSJ AUG 5 1993 9308030040 930803 BUSINESS BRIEF FIRST NATIONAL CORP INVESTORS AGREE TO GIVE UNIT 8 MILLION INFUSION FOR STOCK FIRST NATIONAL CORP SAID IT SIGNED A DEFINITIVE AGREEMENT WITH AN INVESTOR GROUP THAT AGREED TO MAKE AN INFUSION OF 8 MILLION TO THE COMPANY'S FIRST NATIONAL BANK SUBSIDIARY IN EXCHANGE FOR MOST OF THE BANK'S EQUITY THE GROUP LED BY INVESTORS JOHN W ADAMS AND JEFFREY A SMITH WOULD PURCHASE SHARES OF NEW COMMON STOCK THAT WOULD REPRESENT 96 OF THE BANK'S COMMON STOCK OUTSTANDING FIRST NATIONAL CORP SAN DIEGO SAID ITS STAKE IN THE SUBSIDIARY WOULD SHRINK TO 4 THE TRANSACTION IS SUBJECT TO VARIOUS CONDITIONS INCLUDING REGULATORY APPROVALS THE FORMATION OF A GROUP BASED IN SAN DIEGO TO PURCHASE 25 OF THE PROPOSED NEW SHARES AND PARTICIPATION IN THE GROUP BY MALIN BURNHAM AND ROBERT D RICHLEY THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER RESPECTIVELY OF BOTH THE HOLDING COMPANY AND THE BANK 9308030039 930803 BUSINESS BRIEF PRIDE PETROLEUM SERVICES INC HOUSTON COMPANY ACQUIRES 2 SOUTH AMERICAN CONCERNS PRIDE PETROLEUM SERVICES INC HOUSTON SAID IT ACQUIRED TWO SOUTH AMERICAN OILFIELD SERVICES COMPANIES TERMS OF THE CASH PURCHASES WEREN'T DISCLOSED BUT PRIDE PETROLEUM SAID THE TRANSACTIONS WILL ADD 35 MILLION TO ITS ANNUAL REVENUE WHICH WAS 1014 MILLION IN 1992 THE COMPANY ACQUIRED A CONTROLLING INTEREST IN AN ARGENTINE COMPANY THAT OWNS 23 WELL SERVICING AND DRILLING RIGS AND ALL OF A VENEZUELAN COMPANY THAT OWNS 14 RIGS THE ARGENTINE COMPANY BASED IN BUENOS AIRES WAS ACQUIRED FROM WESTERN ATLAS INTERNATIONAL A JOINT VENTURE OF LITTON INDUSTRIES INC AND DRESSER INDUSTRIES INC THE VENEZUELAN CONCERN BASED IN CUIDAD OJEDA HAD BEEN PRIVATELY HELD 9308030038 930803 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE DEALS FAXES AND LATENIGHT BOILER ROOM' POWER WHITE HOUSE'S PITCH FOR CLINTON ECONOMIC PLAN BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL ON SUNDAY MORNING AFTER SENATE MINORITY LEADER ROBERT DOLE WENT ON TELEVISION AND CRITICIZED THE CLINTON ECONOMIC PLAN FOR PUTTING OFF MOST OF ITS SPENDING CUTS UNTIL AFTER THE 1996 ELECTIONS WHITE HOUSE AIDE GENE SPERLING WENT INTO ACTION WORKING WITH INFORMATION STORED IN A LOOSELEAF NOTEBOOK MR SPERLING PRODUCED NUMBERS SHOWING MR DOLE'S OWN BUDGET PLAN ALSO PUT OFF MOST OF ITS CUTS UNTIL AFTER 1996 BY THE END OF THE DAY YESTERDAY THE INFORMATION HAD BEEN PHONED AND FAXED TO KEY DEMOCRATS ON CAPITOL HILL CABINET OFFICERS DOZENS OF DEMOCRATIC OFFICIALS AROUND THE COUNTRY AND A BEVY OF REPORTERS THE RAPID RESPONSE WAS A SIGN OF THE ADMINISTRATION'S NEWFOUND EFFICIENCY IN PROMOTING ITS ECONOMIC PLAN AFTER FAILING FOR FIVE MONTHS TO MOUNT AN EFFECTIVE PITCH FOR THE PLAN THE PRESIDENT AND HIS STAFF HAVE IN THE PAST FEW WEEKS HIT THEIR STRIDE WORKING OUT OF A BOILER ROOM RUN BY DEPUTY TREASURY SECRETARY ROGER ALTMAN THEY ARE DOING A BETTER JOB COMMUNICATING WITH MEMBERS OF CONGRESS AND THE PUBLIC EVEN THEIR OPPONENTS HAVE TAKEN NOTICE THE WHITE HOUSE ISN'T DOING THE FOOLISHLY SELFDESTRUCTIVE THINGS THEY'VE DONE ALL SPRING SAYS HOUSE REPUBLICAN WHIP NEWT GINGRICH ADDS ALAN SIMPSON THE SENATE'S GOP WHIP THERE'S MORE SENSITIVITY AND MUCH MORE OUTREACH AND THAT'S THE KEY MR ALTMAN A MILLIONAIRE INVESTMENT BANKER ALSO SEEMS TO HAVE BRIDGED THE DIVIDE BETWEEN THE POPULIST INSTINCTS OF SUCH FORMER CLINTON CAMPAIGN AIDES AS JAMES CARVILLE AND THE WALL STREET TENDENCIES OF HIS FELLOW TOP ECONOMIC ADVISERS HE HAS ACHIEVED THIS THROUGH A COMBINATION OF STYLE HE WORKS COMFORTABLY WITH HIS YOUNGER SHIRTSLEEVED AIDES EVEN INVITING THE WHOLE TEAM TO HIS GEORGETOWN HOME FOR DINNER FRIDAY NIGHT AND SUBSTANCE DEMONSTRATING A PRECISE COMMAND OF THE PACKAGE AND A WILLINGNESS TO ATTACK REPUBLICAN OPPONENTS SHARPLY IN THE BOILER ROOM WHERE HE SITS WHICH IS MODELED AFTER THE TIGHTLY KNIT COMMAND CENTER OF THE CLINTON PRESIDENTIAL CAMPAIGN IN LITTLE ROCK MR ALTMAN IS KNOWN AS CARVILLE WITH CUFFLINKS MR ALTMAN IS MY FAVORITE RICH PERSON ON THE FACE OF THE EARTH SAYS MR CARVILLE AN INITIAL SKEPTIC OF THE WALL STREET CROWD THAT DOMINATES THE CLINTON ECONOMIC CREW WHETHER THE ADMINISTRATION'S NINTHINNING REVIVAL WILL BE ENOUGH TO RESCUE THE PRESIDENT'S PLAN IS STILL NOT CERTAIN THE ALTMAN OPERATION MUST OVERCOME MONTHS OF NEGLECT AND MISMANAGEMENT THE PRESIDENT'S POLICY HAS FLOUNDERED UNTIL NOW BEREFT OF A CONSISTENT MESSAGE IT HAS BEEN DROWNED IN A SEA OF COMPETING PRIORITIES SO ALTHOUGH CONGRESSIONAL CONFEREES ARE CLOSE TO A COMPROMISE PROPOSAL IT STILL MUST BE APPROVED IN THE HOUSE AND THE SENATE THE VOTE LOOKS CLOSE BUT THE WHITE HOUSE EFFORT HAS AT LEAST PROVIDED NEW SIGNS THAT THE CLINTON ADMINISTRATION DESPITE EARLY FUMBLING IS LEARNING ON THE JOB MAYBE IT TOOK A LITTLE LONGER TO GET HERE THAN WE WANTED SAYS CLINTON POLITICAL ADVISER PAUL BEGALA BUT IT'S WORKING WELL NOW AND IT WILL STAND US IN GOOD STEAD AS WE GO FORWARD THE RENEWED EFFORT BEGAN THE SATURDAY EVENING BEFORE MR CLINTON LEFT FOR THE TOKYO SUMMIT WHEN HE ASSEMBLED HIS SENIOR STAFF AND BLUNTLY LAID DOWN ORDERS FOR PROMOTING THE ECONOMIC PLAN THIS IS GOING TO BE COORDINATED THIS IS GOING TO BE INTEGRATED THIS IS GOING TO WORK AND THIS IS GOING TO PASS HE SAID HEATEDLY ACCORDING TO ONE PERSON WHO ATTENDED WHITE HOUSE STAFFERS AND CABINET MEMBERS WERE TOLD TO CLEAR THE DECKS OF ANYTHING OTHER THAN VISITS SPEECHES AND INTERVIEWS TO PROMOTE THE PRESIDENT'S TOP PRIORITY ON A TYPICAL DAY LAST WEEK FOR EXAMPLE 28 CABINET OFFICERS AND SENIOR WHITE HOUSE OFFICIALS WERE EITHER MAKING TELEPHONE CALLS OR MEETING IN PERSON WITH MEDIA REPRESENTATIVES AND PIVOTAL LAWMAKERS IN AT LEAST 18 STATES AND THE DISTRICT OF COLUMBIA THE PACE IS SO FRENETIC THAT TREASURY SECRETARY LLOYD BENTSEN JOKES HE IS TURNING INTO THE LOWESTPRICED LOBBYIST IN TOWN CABINET OFFICERS HAVE BEEN DISPATCHED TO WOO HOMESTATE CROWDS INTERIOR SECRETARY BRUCE BABBITT A FORMER GOVERNOR OF ARIZONA STUMPED IN PHOENIX LAST WEEK TO PUT PRESSURE ON DEMOCRATIC SEN DENNIS DECONCINI WHO OPPOSED THE PACKAGE IN THE SENATE MR BABBITT MADE HEADLINES BY SAYING THIS IS NOT A TIME TO BE FAINTHEARTED THE MESSAGE WAS AMPLIFIED BY COMMERCIALS PAID FOR BY THE DEMOCRATIC NATIONAL COMMITTEE CABINET OFFICERS ARE ALSO TURNING UP AT THE DOORSTEP OF LAWMAKERS WITH INCREDIBLE REGULARITY AND OFFERING ASSISTANCE BOTH BIG AND SMALL ENERGY SECRETARY HAZEL O'LEARY STOPPED BY THE OFFICE OF DEMOCRATIC REP RICHARD DURBIN OF ILLINOIS LAST WEEK AND OFFERED TO GO TO HIS DISTRICT TO CAMPAIGN FOR HIM IT WAS THE FIFTH CABINET SECRETARY HE HAD MET WITH IN THE PAST TWO WEEKS AND MR CLINTON HIMSELF HAS BEEN MAKING ENERGETIC PITCHES TO A VARIETY OF GROUPS AND MEETING PERSONALLY WITH AS MANY CONGRESSIONAL DEMOCRATS AS HE CAN ARKANSAS REP BLANCHE LAMBERT PROBABLY HOLDS THE RECORD SHE HAS SEEN THE PRESIDENT THREE TIMES IN THE PAST WEEK ALONE THE HEART OF THIS NEWLY EFFECTIVE WHITE HOUSE OPERATION IS THE BOILER ROOM A CONFERENCE ROOM RINGED WITH 14 COMPUTERS AND FILLED WITH THE ELITE OF THE WHITE HOUSE STAFF THE NEARLY 24HOURADAY EFFORT IS A MARKETING MARATHON WITH AN ESPRIT REMINISCENT OF A HIGH SCHOOL BASKETBALL TEAM DURING TWICEDAILY MEETINGS THE GROUP UNABASHEDLY APPLAUDS EVEN ITS OWN MOST INCREMENTAL ACCOMPLISHMENTS AND YOUNGER AIDES CELEBRATE WITH HIGH FIVES WHEN THE BOILER ROOM CAUGHT WIND THAT A GROUP OPPOSING THE PLAN WAS GOING TO HOLD A NEWS CONFERENCE IN DOWNTOWN WASHINGTON LAST WEEK RAHM EMANUEL THE BOILER ROOM'S QUICKRESPONSE EXPERT PULLED OUT HIS OWN CREDIT CARD TO SECURE A ROOM DOWN THE HALL FOR ITS OWN BRIEFING NEWS STORIES THE NEXT DAY INCLUDED THE ASSERTIONS FROM BOTH THE OPPONENT AND THE WHITE HOUSE SUCH HEADSUP PLAY IS YIELDING RESULTS LAWMAKERS REPORT THAT THEIR TELEPHONE CALLS AND LETTERS FROM CONSTITUENTS ONCE LOPSIDEDLY AGAINST THE PRESIDENT'S PLAN ARE NOW RUNNING MORE EVENLY IT'S SLIGHTLY IN FAVOR OF THE PRESIDENT ESTIMATES DEMOCRATIC REP LYNN SCHENK OF CALIFORNIA EARLIER THIS YEAR SHE ADDS IT WAS MAYBE THREE OR FOUR CALLS IN FAVOR TO THOUSANDS AGAINST DO YOU FAVOR OR OPPOSE PRESIDENT CLINTON'S ECONOMIC PROGRAM 9308030037 930803 FORM + FUNCTION BY JOHN PIERSON THE RECORDING INDUSTRY IS A STICKY BUSINESS MANY COMPACT DISKS NOW COME TO MARKET IN PLASTIC JEWEL BOXES SEALED TWICE WITH CELLOPHANE AROUND THE BOX AND A SILVER TAB INSIDE THE CELLOPHANE ON THE EDGE WHERE THE BOX OPENS KNOWN FORMALLY AS A TAMPEREVIDENT HOLOGRAPHIC DOGBONE STICKER THE TAB FRUSTRATES MANY CD BUYERS BUT HELP MAY BE ON THE WAY RECORD COMPANIES ADOPTED THE DOG BONE LAST YEAR AS PART OF THEIR MOVE AWAY FROM THE THROWAWAY PAPER LONG BOX A CHANGE INTENDED TO REDUCE WASTE THE TAB IS MEANT TO SHOW CONSUMERS THEY'RE BUYING A NEVERPLAYED CD AND TO SHOW RECORD COMPANIES THAT ANY RETURNS THEY GET FROM RETAILERS ARE ALSO NEW THE DOG BONE HOWEVER IS HARD TO PEEL OR CUT ONCE PEELED IT LEAVES A STUBBORN STICKY RESIDUE SOME CONSUMERS HAVE TAKEN TO THROWING AWAY THE ORIGINAL JEWEL BOX AND BUYING A NEW EMPTY ONE WHICH MOCKS THE PURPOSE OF THE PACKAGING CHANGE KEN BARNES EDITOR OF RADIO & RECORDS MAGAZINE USES A RAZOR TO CUT THE STICKER AND FINDS THE EFFORT A MINOR PAIN MATT MELLOTT MANAGER OF BUSTER'S ROCK DREAMS A RECORD STORE IN PLAINSBORO NJ SAYS HE REMOVES THE REALLY DISGUSTING RESIDUE WITH TAPE NOT ALL RECORD COMPANIES USE THE STICKER MARGARET WADE A SPOKESWOMAN FOR WARNER MUSIC SAYS WE DON'T USE THEM BECAUSE THE STICKY STUFF IS A PAIN IN THE NECK THOSE THAT USE THE DOG BONE HAVE MADE CHANGES THAT SHOULD BEGIN SHOWING UP IN STORES SOON RUSS BACH PRESIDENT OF THE DISTRIBUTION ARM OF EMI RECORDS GROUP NORTH AMERICA NEW YORK SAYS HIS COMPANY BEGAN USING TABS WITH AN EASYTOOPEN GLUE TWO MONTHS AGO PAUL SMITH PRESIDENT OF SONY MUSIC DISTRIBUTION SAYS HIS COMPANY HAS SWITCHED TO A GLUE THAT COMES OFF WITH THE STICKER AND IS WORKING ON ANOTHER GLUELESS CLOSURE MEANWHILE CONSUMERS CAN USE A STEAK KNIFE TO PEEL OFF THE SEAL AND VARIOUS HOUSEHOLD SOLVENTS TO REMOVE THE STICKY RESIDUE MR SMITH SAYS A SMALL DAB OF TOXIC SOLVENT DOES NEGLIGIBLE HARM TO THE ENVIRONMENT COMPARED WITH A NONRECYCLABLE FOURCOLOR LONG BOX MR SMITH ARGUES DESIGN STUDENTS AT THE ILLINOIS INSTITUTE OF TECHNOLOGY HAVE PRODUCED SUGGESTIONS ABOUT HOSPITAL DESIGN THAT ARE MAKING THEIR ELDERS ENVIOUS WORKING UNDER LARRY KEELEY ASSOCIATE PROFESSOR AND PRESIDENT OF DOBLIN GROUP A CHICAGO DESIGN FIRM THE NINE SECONDYEAR GRADUATE STUDENTS HAVE PUT MEAT ON THE BONES OF PATIENTCENTERED CARE AN IDEA IN VOGUE AMONG HOSPITAL PLANNERS THE STUDENTS PROPOSED THAT HOSPITALS ADD AMONG 200 OTHER THINGS GARDENS WHERE PATIENTS COULD WORK ON THE TERRACES OUTSIDE THEIR ROOMS MORE VISITOR SEATING PERSONAL VIDEO SCREENS MONITORS SEWED INTO CLOTHING TO ALLOW PATIENTS TO LEAVE THEIR ROOMS AND COMPUTERS ON WHICH PATIENTS COULD SCHEDULE THEIR OWN TESTS MEAL TIMES AND VISITING HOURS PROFESSIONALS PRAISED THE STUDENT WORK THE THINGS ECONOMISTS AND BUSINESS ANALYSTS AND ARCHITECTS DO AREN'T ENOUGH TO MAKE THE PATIENT FUNDAMENTALLY HAPPY SAID PETER STAMOS SAN FRANCISCO A CONSULTANT AT BOOZ ALLEN HEALTH CARE THE DESIGN STUDENTS TOOK OUR WORK AND HUMANIZED IT A DISSENTING NOTE CAME FROM CHICAGO ARCHITECT LEON FLOERCHINGER WHOSE FIRM SPECIALIZES IN DESIGNING HEALTHCARE FACILITIES THE STUDENT IDEAS MAKE SENSE BUT WOULD COST TOO MUCH MONEY HE SAYS MR STAMOS REPLIES THAT PATIENTCENTERED CARE REDUCES OPERATING COSTS 10 ON AVERAGE BY MAKING CARE MORE EFFICIENT AND THE STUDENT SUGGESTIONS SHOULD DO THE SAME ANYONE WHO HAS EVER WALKED ON SAND ESPECIALLY WITH A LOAD KNOWS THAT SINKING FEELING NOW SEVERAL INVENTORS ARE USING DIFFERENT WHEELS TO LIFT SPIRITS AND LOADS ON THE BEACH OSCAR DONES AND RAY BECK HAVE DESIGNED A DOLLYLIKE CART CALLED THE ANT THAT CARRIES UP TO 30 POUNDS OVER SAND AND OTHER ROUGH TERRAIN UNLOADED THE CART BECOMES A CHAIR FOR WHEELS THE ANT HAS TWO PLASTIC CONES OPERATING INDEPENDENTLY ON ONE AXLE THE NARROW PART IN THE MIDDLE ALLOWS SAND TO PASS UNDER THE WHEELS RATHER THAN BUILDING UP IN FRONT AS A BOW WAVE THE DESIGNERS SAY THE ANT WEIGHS ABOUT SEVEN POUNDS AND IS AVAILABLE FROM MLE CO SOMERVILLE NJ FOR 35 TO 90 THE ANT ISN'T PERFECT JAMES HOPPENRATH A LONG BEACH CALIF CARPET SALESMAN SAYS THE CART DOES REALLY WELL ON PACKED SAND BUT GOES A LITTLE TOUGHER ON SOFT SAND BILL TUGGLE INVENTED A BIG BALLOONLIKE PLASTIC TIRE THAT HE HAS ATTACHED TO A DOZEN DIFFERENT CARTS FOR INDUSTRY THE MILITARY DISABLED PEOPLE AND CONSUMERS THE BEACH VERSION CARTEEZ CAN HAUL AS MUCH AS 300 POUNDS OVER SAND OR MUD THE AIRFILLED WHEELS SPREAD THE WEIGHT OVER A BROAD SURFACE TO KEEP THE CART FROM GETTING BOGGED DOWN CARTEEZ WEIGHS 20 OR 30 POUNDS AND IS SOLD BY ROLEEZ WHEEL SYSTEM NORFOLK VA IT IS MORE BULKY AND COSTLYAT 98 TO 189THAN MOST OF ITS COMPETITORS OTHER ENTRANTS INCLUDE THE LAND N' SAND TUGGY A SORT OF SLEIGH WITH PLASTIC RUNNERS AND WHEELS AND A CANVAS CRADLE AVAILABLE FROM LEIGHMARIE VENTURES BERKELEY HEIGHTS NJ FOR 6995 DUNE DOLLY A CART WITH TWO SOLID EXTRAWIDE WHEELS COMES FROM LEISURE PRODUCTS MANCHESTER CONN FOR 2995 9308030036 930803 WHITE HOUSE TRAVEL OFFICE PROBE REQUEST IS REJECTED WASHINGTON THE JUSTICE DEPARTMENT REJECTED A REQUEST TO APPOINT AN INDEPENDENT COUNSEL TO INVESTIGATE THE CONTROVERSY SURROUNDING THE WHITE HOUSE TRAVEL OFFICE IN A LETTER TO THE LANDMARK LEGAL FOUNDATION A PUBLICINTEREST LAW GROUP THAT REQUESTED THE INDEPENDENT COUNSEL THE JUSTICE DEPARTMENT SAID THERE IS NO CONFLICT OF INTEREST THAT WOULD WARRANT TURNING TO AN OUTSIDE PROSECUTOR THE FEDERAL BUREAU OF INVESTIGATION WAS CALLED TO PROBE ALLEGATIONS OF FINANCIAL IRREGULARITIES IN THE TRAVEL OFFICE BY A WHITE HOUSE OFFICIAL IN A MANNER THAT PROMPTED A COMPLAINT BY ATTORNEY GENERAL JANET RENO MARK LEVIN LANDMARK'S DIRECTOR OF LEGAL POLICY SAID HE CALLED FOR AN INDEPENDENT COUNSEL BECAUSE OF ALLEGATIONS THAT THE WHITE HOUSE WANTED TO STEER ITS TRAVEL BUSINESS TO FRIENDS OF THE PRESIDENT AND BECAUSE OF THE ROLE THE FBI HAD IN THE INVESTIGATION 9308030035 930803 BUSINESS BRIEF LANDMARK BANCORP INSURER AGREES TO SETTLEMENT PARTLY COVERING LOAN LOSSES LANDMARK BANCORP LA HABRA CALIF SAID ITS INSURER AGREED TO PAY 13 MILLION TO PARTLY COVER LOSSES RESULTING FROM MONEY ILLEGALLY ADVANCED TO BORROWERS BY A LOAN OFFICER AT ITS LANDMARK BANK UNIT LANDMARK SAID A LOAN OFFICER WHOSE NAME IT WOULDN'T DISCLOSE FALSIFIED TAX AND OTHER FINANCIAL RECORDS TO DUPE BANK EXECUTIVES INTO APPROVING BUSINESS BORROWERS WHO LACKED BOTH THE COLLATERAL AND THE INCOME TO JUSTIFY LOANS A LANDMARK SPOKESMAN CALLED THE EPISODE A ROBIN HOOD SITUATION BECAUSE THE LOAN OFFICER MANIPULATED ONLY THE APPLICATIONS OF PHILANTHROPIC OR PUBLICINTEREST BUSINESSES AMONG THEM A BATTEREDWOMEN'S SHELTER AND A REHABILITATION CENTER BUT IN DECEMBER 1991 THE BANK DISCOVERED THE SITUATION CRIMINAL CHARGES WERE BROUGHT AGAINST THE LOAN OFFICER AND LAST WEEK THE OFFICER WAS SENTENCED TO SIX MONTHS IN JAIL AFTER PLEADING GUILTY TO THREE COUNTS OF VIOLATING FEDERAL BANKING LAWS A BANK SPOKESMAN SAID THE 13 MILLION SETTLEMENT WITH ITS INSURER BALTIMOREBASED FIDELITY & DEPOSIT INSURANCE COS WOULD HELP OFFSET 32 MILLION IN FRAUDULENT LOANS MADE BY THE OFFICER 9308030034 930803 REVIEW & OUTLOOK EDITORIAL OF CHANNEL JOCKEYS AND TYRANTS SUN WEIGUO'S BRICK HOUSE WITH MUD FLOORS AND TWO PIGS MOVING FREELY FROM ROOM TO ROOM IS A THREEHOUR DRIVE FROM THE WESTERN CHINESE CITY OF CHENGDU AND A WORLD AWAY FROM RUPERT MURDOCH'S YACHT IN THE MEDITERRANEAN SEA BUT WHEN THE MEDIA MOGUL ANNOUNCED LAST WEEK THAT HIS NEWS CORP WOULD PAY 525 MILLION IN CASH AND STOCK FOR A 64 STAKE IN STAR ASIA'S FIRST AND BIGGEST SATELLITETELEVISION BROADCASTER THOSE WORLDS SUDDENLY DREW CLOSER THE REASON THE MOST PROMINENT FEATURE IN MR SUN'S PEASANT HOME IS A SELDOMTURNEDOFF BIGSCREEN TV THAT IS HOOKED UP TO A SATELLITE DISH PERCHED ATOP HIS WOODPLANKED ROOF SAYS MR SUN I LIKE THE BIG PICTURE AND SO DO WE THE SIGNIFICANCE OF MR MURDOCH'S STAR DEAL IS BROADER THAN JUST AN INDUSTRY'S AMBITION BURDENED BY STAGNANT MARKETS AND GOVERNMENT REGULATION IN THE US AND EUROPE THE WORLD'S MEDIA BARONS HAVE LONG COVETED ASIA'S RIPENING MEDIA MARKET AND ITS HOST OF POTENTIAL VIEWERS DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL AND THE MAJORITY OWNER OF THE ASIAN WALL STREET JOURNAL JOINED A GROUP JUST THREE DAYS AFTER THE STAR DEAL WAS INKED THAT INTENDS TO LAUNCH ASIA'S FIRST SATELLITE BUSINESSNEWS CHANNEL MEDIA FIRMS SUCH AS TIME WARNER TURNER BROADCASTING AND CARLTON COMMUNICATIONS MAY BE SOON TO FOLLOW THE ASIA MEDIA BANDWAGON AND HEREIN LIES THE BIG PICTURE WE LIKE SOONER THAN HE'D EVEN REALIZED A PEASANT FARMER FROM THE BACK ROADS OF COMMUNIST CHINA IS GOING TO BE EXPOSED TO ONE OF THE GREATEST 20TH CENTURY ACCOMPLISHMENTS THE BRIDGING OF GEOGRAPHICAL AND CULTURAL VOIDS BY MEANS OF ELECTRONIC SIGNALS OPPRESSION HE WILL STILL HAVE BUT IN ONE REGARD HE ALSO WILL HAVE FREEDOM OF CHOICE THE 68YEAROLD MR SUN ALREADY SENSES THIS WHEN HE JOCKEYS BETWEEN STAR'S FIVE CHANNELS I LIKE TO WATCH SPORTS AND NEWS HE TOLD US ONE RECENT EVENING BUT MY GRANDCHILDREN LIKE MTV HE THEN LAUGHS IT IS DIFFICULT TO CHOOSE BUT HE LOVES HAVING THE CHOICE AND FOR MR SUN THIS IS THE HAPPIEST TRUTH ABOUT THE WIRED WORLD THE DEMOCRATIZATION OF COMMUNICATIONS FROM THE BBC TO CNN TO MTV MEANS THAT DINOSAURS LIKE THE ONES THAT RESIDE IN BEIJING CAN BE BYPASSED WARS HAVE TRADITIONALLY BEGUN WHEN BORDERS WERE VIOLATED LIKE THIS BUT TODAY BORDERS ARE POROUS BECAUSE MONEY AND IDEAS AS POWERFUL AS ARMIES CROSS THEM ELECTRONICALLY THERE ARE ABOUT 2000 SATELLITE DISHES IN THE CHINESE CAPITAL THERE MAY BE JUST AS MANY IN MR SUN'S SICHUAN PROVINCE INDEED MR SUN'S ONLY WORRY IS WHAT HIS FAMILY WATCHES MY NINEYEAROLD GRANDSON WATCHES MTV ALL THE TIME HE SAYS WITH TYPICAL GRANDPARENTAL DISGUST HE LIKES A BAND CALLED AEROSMITH THE COUNTERCOUNTERREVOLUTION ON TV PROGRAMMING IN THE SUN FAMILY HOME IT SEEMS MAY BE JUST ABOUT TO BEGIN 9308030033 930803 MARKETING BRIEF NOTED ATLANTA EMMIS BROADCASTING CORP'S PUBLISHING UNIT PURCHASED ATLANTA MAGAZINE A 60000CIRCULATION MAGAZINE FORMERLY OWNED BY AMERICAN EXPRESS CO WHICH HAS BEEN DIVESTING ITS CITY MAGAZINE PROPERTIES TERMS WEREN'T DISCLOSED 9308030032 930803 BUSINESS BRIEF APPLE COMPUTER INC LARGE COMPANIES LINE UP FOR NEW NEWTON COMPUTER APPLE COMPUTER INC SAID IT HAS LINED UP A PRESTIGIOUS GROUP OF CUSTOMERS FOR ITS NEWTON MESSAGEPAD EVEN BEFORE THE HANDHELD COMPUTER'S DEBUT IN STORES IN A FLURRY OF NEWS RELEASES TIMED TO COINCIDE WITH NEWTON'S FORMAL UNVEILING IN BOSTON YESTERDAY APPLE SAID ITS CUSTOMER LIST INCLUDES GIANTS SUCH AS COCACOLA CO AMERICAN EXPRESS CO AND THE DEFENSE DEPARTMENT WHICH PLANS TO USE NEWTONS FOR HEALTHCARE OPERATIONS DATAQUEST A SAN JOSE CALIF RESEARCH COMPANY ESTIMATES APPLE SHOULD SELL ABOUT 70000 NEWTONS IN 1993 ACCOUNTING FOR LESS THAN 1 OF APPLE'S TOTAL SALES APPLE SAID BELLSOUTH CORP'S MOBILECOMM UNIT SIGNED ON TO PROVIDE WIRELESS MESSAGE SERVICE FOR NEWTON USERS THROUGH ITS PAGING NETWORK BEGINNING THIS FALL THE COMPANY SAID IT ALSO CONTRACTED WITH SPRINT CORP AND BT NORTH AMERICA INC A UNIT OF BRITISH TELECOMMUNICATIONS PLC TO DEVELOP VARIOUS FUTURE SERVICES FOR NEWTONS AND OTHER APPLE PRODUCTS RANGING FROM BANKING TO BOOKING TRAVEL TICKETS 9308030031 930803 BUSINESS BRIEF ZURN INDUSTRIES INC VERDICT SPURS RESTATEMENT OF FIRSTQUARTER EARNINGS ZURN INDUSTRIES INC RESTATED ITS FIRSTQUARTER EARNINGS TO INCLUDE AN AFTERTAX CHARGE OF 232 MILLION OR 187 A SHARE FOR THE ESTIMATED EFFECT OF LAST WEEK'S JURY VERDICT IN A LAWSUIT CONCERNING A WASTEBURNING POWER PLANT BUILT BY ZURN INCLUDING THE CHARGE THE ERIE PA COMPANY HAD A LOSS OF 166 MILLION OR 134 A SHARE FOR THE QUARTER SALES WERE 2888 MILLION ZURN HAD PREVIOUSLY REPORTED A PROFIT OF 66 MILLION OR 53 CENTS A SHARE IN THE 1992 FIRST QUARTER ZURN EARNED 56 MILLION OR 45 CENTS A SHARE ON 1432 MILLION IN SALES ZURN SAID IT SET ASIDE 362 MILLION BEFORE TAXES FOR THE VERDICT BUT IF IT LOSES ITS APPEALS IT MAY HAVE TO EXPAND THE RESERVE TO AS MUCH AS 50 MILLION IF THAT HAPPENS THE AFTERTAX EFFECT ON THE COMPANY'S FINANCIAL POSITION WILL NOT BE MATERIAL ZURN SAID IN A STATEMENT IN THE LAWSUIT FILED IN IMPERIAL COUNTY CALIF SUPERIOR COURT ZURN WAS ACCUSED OF FAILING TO MEET PERFORMANCE SPECIFICATIONS IN A BRAWLEY CALIF PLANT IT BUILT IN THE LATE 1980S 9308030030 930803 BUSINESS BRIEF GOTTSCHALKS INC CONCERN REACHES AGREEMENT ON REVOLVING CREDIT LINE GOTTSCHALKS INC SAID IT REACHED AN AGREEMENT ON A NEW 110 MILLION REVOLVING CREDIT LINE WITH WELLS FARGO BANK AND TEACHERS INSURANCE & ANNUITY ASSOCIATION A PENSION FUND THE FRESNO CALIF RETAILER HAD DEFAULTED ON COVENANTS IN ITS PREVIOUS LOAN AGREEMENT WITH TEACHERS INSURANCE WHICH EXPIRED LAST MAY AND HAS BEEN OPERATING ON EXTENSIONS FROM WELLS FARGO A UNIT OF WELLS FARGO & CO THERE HAD BEEN RUMORS WITHIN RETAILING CIRCLES THAT IT MIGHT HAVE DIFFICULTY RAISING CASH FOR THE CRITICAL HOLIDAY SEASON ALAN WEINSTEIN GOTTSCHALKS'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THAT UNDER THE NEW LINE OF CREDIT THE COMPANY WOULD RECEIVE 30 MILLION IN TERM LOANS AND AN 80 MILLION REVOLVING LINE OF CREDIT THE AGREEMENT WILL SATISFY GOTTSCHALKS'S CASH REQUIREMENTS THROUGH JUNE 30 HE SAID UNDER THE NEW AGREEMENT WE WILL BE IN COMPLIANCE WITH ALL OUR LOAN COVENANTS MR WEINSTEIN SAID HE SAID GOTTSCHALKS HAS A STRONG BALANCE SHEET AND IS IN GOOD FINANCIAL SHAPE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GOTTSCHALKS CLOSED AT 7 UP 25 CENTS 9308030029 930803 BUSINESS BRIEF SAN DIEGO GAS & ELECTRIC CO UTILITY SETTLES CLAIMS AGAINST TWO RETAILERS SAN DIEGO GAS & ELECTRIC CO SAID IT SETTLED CLAIMS AGAINST TWO RETAILERS SILO INC AND ALADRAY'S INC FOR THEIR ALLEGEDLY FALSE CLAIMS FOR REBATES LINKED TO SALES OF ENERGYEFFICIENT REFRIGERATORS SILO AGREED TO PAY 135000 TO THE SAN DIEGO UTILITY FOR ITS ALLEGED OVERPAYMENT OF REBATES AS WELL AS ATTORNEYS' FEES AND OTHER COSTS OF THE LAWSUIT THE COMPANIES SAID THE SETTLEMENT WAS WITHOUT ADMISSION OF ANY LIABILITY OR WRONGDOING SAID SILO IN PHILADELPHIA SAN DIEGO GAS SAID ITS SETTLEMENT WITH ALADRAY'S IS CONFIDENTIAL A GENERAL MANAGER AT THE SAN DIEGO RETAILER DIDN'T RETURN A CALL FOR COMMENT IN MAY THE UTILITY FILED A LAWSUIT IN STATE COURT IN SAN DIEGO CHARGING FOUR RETAILERS WITH APPLYING FOR MULTIPLE REBATES FROM THE SALE OF A SINGLE REFRIGERATOR IN ADDITION THE UTILITY CHARGED THAT SOME OF THE REBATES WERE PAID FOR REFRIGERATORS THAT WEREN'T ELIGIBLE FOR THEM BECAUSE THE APPLIANCES WERE DESTINED FOR USE OUTSIDE THE UTILITY'S SERVICE AREA 9308030028 930803 CREDIT MARKETS SOME EUROPEAN BOND PRICES RALLY ON HOPES THAT CURRENCY TURMOIL WILL SPUR RATE CUTS BY THOMAS T VOGEL JR AND TONY MCCAULEY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND PRICES IN SEVERAL EUROPEAN NATIONS RALLIED YESTERDAY AS INVESTORS HOPED THAT THE CONTINUING CURRENCY CRISIS WOULD RESULT IN DECISIONS TO CUT INTEREST RATES IN THOSE NATIONS ON SUNDAY EUROPEAN COMMUNITY FINANCE MINISTERS AGREED TO MODIFY EUROPE'S EXCHANGE RATE MECHANISM BY BROADENING THE TRADING BANDS FOR SEVEN OF THE NINE ERM CURRENCIES WIDENING THEM TO AS MUCH AS 15 ABOVE OR BELOW THEIR CENTRAL RATES THE PREVIOUS LIMIT FOR MOST CURRENCIES WAS 225 ABOVE OR BELOW THESE CENTRAL RATES WITH A RANGE OF PLUS OR MINUS 6 FOR THE SPANISH AND PORTUGUESE CURRENCIES THE MOVE FUELED SPECULATION IN SOME NATIONS THAT INTERESTRATE CUTS COULD COME NEXT FRENCH AND DUTCH BONDS RALLIED WHILE GERMAN BONDS ROSE SLIGHTLY AND BRITISH BONDS WERE LITTLE CHANGED EUROPEAN CURRENCY UNIT OR ECU BONDS ALSO POSTED STRONG GAINS MEANWHILE US TREASURYS ENDED NARROWLY MIXED WITH THE BENCHMARK 30YEAR TREASURY BOND RISING 1/8 POINT OR 125 FOR A BOND WITH A 1000 FACE VALUE TO 107 12/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 655 FROM 657 FRIDAY THE EC ACTION IS BEING SEEN AS PAVING THE WAY FOR EUROPEAN NATIONS TO SLASH INTEREST RATES IN ORDER TO DEAL WITH THEIR TROUBLED ECONOMIES BY LATE YESTERDAY SOME FRENCH GOVERNMENT BONDS OR OBLIGATIONS ASSIMILABLES DU TRESOR HAD RISEN AS MUCH AS 2 1/3 POINTS OR MORE THAN 23 FOR A BOND WITH A 1000 FACE VALUE AMONG BENCHMARK FRENCH GOVERNMENT BONDS THE 675 COUPON 10YEAR NOTES ROSE 158 POINTS FROM LATE FRIDAY IN PARIS TO 10249 TO YIELD 641 COMPARED WITH 663 FRENCH GOVERNMENT BONDS MATURING 30 YEARS FROM NOW ROSE 235 POINTS TO 11516 TO YIELD 725 COMPARED WITH 743 ON FRIDAY THE BANQUE DE FRANCE FRANCE'S CENTRAL BANK DIDN'T MOVE IMMEDIATELY TO CUT ANY OF ITS INTEREST RATES AND SOME MARKET PARTICIPANTS EXPECT THE FRENCH AUTHORITIES MAY APPROACH A MONETARY EASING CAUTIOUSLY SO AS TO SUPPORT THE FRANC BUT GIVEN THE DRASTIC STEPS TAKEN OVER THE WEEKEND THEY AREN'T EXPECTING TOO LONG OF A DELAY GIVEN THE POLITICAL PRESSURES HERE WE WOULD EXPECT MOVES ON RATES SOON SAID JOHN HALL AN INTERNATIONAL ECONOMIST WITH SWISS BANK CORP IN FRANCE DUTCH BONDS ALSO ENDED HIGHER TRADERS SAID THAT DUTCH BONDS ARE BENEFITING FROM THE LIKELY CONTINUATION OF ERM UNCERTAINTIES AS INVESTORS OUTSIDE THE NETHERLANDS ARE DRAWN TO THE STRENGTH OF THE DUTCH GUILDER THE GOVERNMENT'S 650 COUPON 10YEAR NOTE ROSE 035 POINT TO 10125 TO YIELD 632 DOWN FROM 637 FRIDAY BRITISH GOVERNMENT BONDS OR GILTS ENDED TIGHTLY MIXED THE GILT MARKET WAS MORE SUBDUED THAN LAST WEEK THANKS PARTLY TO A COMMENT FROM CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE ON FRIDAY MR CLARKE SAID THAT BRITISH INTEREST RATES WOULD BE SET ACCORDING TO BRITAIN'S NEEDS AND WON'T ALWAYS FOLLOW RATES IN OTHER COUNTRIES THE BENCHMARK 9 COUPON GOVERNMENT 15YEAR NOTE DROPPED LESS THAN 1/8 POINT TO 111 6/32 YESTERDAY TO YIELD 773 UP FROM 772 FRIDAY AMONG SHORTERDATED BONDS THE 8 COUPON GOVERNMENT 10YEAR NOTE ALSO DROPPED LESS THAN 1/8 POINT TO 104 25/32 TO YIELD 730 SOME MARKET PROFESSIONALS BEGAN TO QUESTION THE OPTIMISM ABOUT RATES THAT HAS BOOSTED BOND PRICES RECENTLY CHRIS ANTHONY DIRECTOR OF STERLING BOND RESEARCH AT UBS LTD IN LONDON SAYS THE REALITY OF EUROPEAN RATE CUTS HAS GOT TO COME THROUGH FOR THE PRICES OF SHORTTERM BRITISH GOVERNMENT SECURITIES TO CLIMB FURTHER MEANWHILE SWISS GOVERNMENT BONDS ENDED LITTLE CHANGED WHILE MANY GERMAN GOVERNMENT BONDS OR BUNDS ROSE ABOUT 1/4 POINT THE 6625 COUPON TREUHAND BUNDS MATURING IN 2003 ROSE 022 POINT TO 10063 TO YIELD 653 DOWN FROM 657 ON FRIDAY BUNDS ATTRACTED SOME INVESTOR INTEREST BECAUSE OF THEIR HAVEN STATUS WITH A STABLE CURRENCY BUT NEIGHBORING MARKETS LIKE FRANCE RALLIED MUCH MORE SHARPLY ON EXPECTATIONS THAT INTEREST RATES THERE COULD BE SLASHED SHARPLY THE MARKET FOR ECU BOND FUTURES CONTRACTS ALSO RALLIED IN REACTION TO THE WIDENING OF THE ERM FLUCTUATION BANDS THE ECU IS A HYBRID CURRENCY COMPOSED OF A BASKET OF THE 12 EC CURRENCIES THOUGH SOME INVESTORS HAVE BEEN BETTING THAT THE ECU WILL EVENTUALLY BECOME THE SINGLE CURRENCY OF EUROPE ECUS HAVE THUS FAR BEEN USED MAINLY AS A CURRENCY IN WHICH BONDS ARE DENOMINATED AND TO SETTLE ACCOUNTS BETWEEN THE EUROPEAN COUNTRIES ECUS AREN'T USED AS A CURRENCY BY CONSUMERS OR BUSINESSES A BOND FUTURES CONTRACT IS AN AGREEMENT TO BUY OR SELL A BOND AT A SET PRICE AT A SPECIFIED TIME IN THE FUTURE SEPTEMBER ECU BOND FUTURES IN PARIS PEAKED AT 11568 EARLY MONDAY UP 112 POINT FROM FRIDAY'S CLOSE BUT SHORTTERM PROFITTAKING LATER DROVE PRICES BACK DOWN TO 11480 FOR A GAIN OF 024 SINCE LAST THURSDAY THE CONTRACT HAS GAINED 034 THE RALLY IS BASED ON THE STRENGTH OF UNDERLYING EUROPEAN GOVERNMENT BOND MARKETS WHICH BEGAN RALLYING LAST THURSDAY ON THE EXPECTATIONS THAT WIDESPREAD INTEREST RATE CUTS WOULD FOLLOW AN ERM COLLAPSE OR REALIGNMENT BUT SOME ANALYSTS SAY THE LONGERTERM PROSPECTS FOR THE UNIT WILL BE HARMED BY THIS SETBACK TO EUROPEAN ECONOMIC AND MONETARY UNION THE VOLUME OF ECU BOND ISSUANCE IS EXPECTED TO REMAIN SLOW AND SOME ANALYSTS SEE THEM LAGGING RALLIES IN OTHER MARKETS US TREASURY NOTES AND BONDS ENDED NARROWLY MIXED YESTERDAY WITH THE 30YEAR BOND RISING WHILE THE PRICES OF MOST OTHER MATURITIES DROPPED THE 10YEAR NOTE FOR EXAMPLE DROPPED MORE THAN 1/8 POINT OR MORE THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 102 31/32 TO YIELD 583 UP FROM 581 THERE WAS LITTLE IN THE WAY OF NEWS TO MOVE THE MARKET YESTERDAY SOME TRADERS SAID EUROPEAN CENTRAL BANKS WERE UNLOADING TREASURY NOTE HOLDINGS YESTERDAY THAT THEY HAD ACCUMULATED BEFORE THE CURRENCY CRISIS BEGAN BUT INFORMAL POLLING OF SEVERAL PRIMARY DEALERS WHO DEAL WITH EUROPEAN BANKS SAID THEY DIDN'T SEE ANY MAJOR SELLING FROM THOSE CLIENTS WHAT MORE LIKELY HURT SECURITIES WITH SHORTER MATURITIES WAS A NEWS ITEM ON THE FRONT PAGE OF YESTERDAY'S WALL STREET JOURNAL THAT MADE THE CASE THAT THE FEDERAL RESERVE IS GONG TO RAISE SHORTTERM INTEREST RATES ONE OF THESE DAYS THAT'S BECAUSE SHORTTERM RATES ADJUSTED FOR INFLATION ARE NEAR ZERO AND IN A GROWING ECONOMY THAT IS TOO LOW THE ARTICLE SAID SINCE TREASURY PRICES MOVE IN THE OPPOSITE DIRECTION FROM YIELDS HIGHER SHORTTERM RATES WOULD OF COURSE MEAN LOWER PRICES ON SHORTTERM NOTES BOND MARKET PLAYERS NOW AWAIT TOMORROW'S REPORT FROM THE TREASURY ON THE DETAILS OF THE NEXT MULTIBILLIONDOLLAR OFFERING OF THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS TO BE USED TO REFUND OUTSTANDING GOVERNMENT DEBT SINCE THE TREASURY ANNOUNCED LAST MAY THAT IT WOULD ONLY SELL 30YEAR BONDS TWICE A YEAR RATHER THAN QUARTERLY THE BOND MARKET IS LIKELY TO HAVE NO PROBLEM DIGESTING THE NEW BONDS YESTERDAY THE TREASURY SOLD 2453 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 310 FOR A COUPONEQUIVALENT YIELD OF 317 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 325 FOR A COUPONEQUIVALENT YIELD OF 335 HERE ARE THE RESULTS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED AUG 5 THE 13WEEK BILLS MATURE NOV 4 1993 AND THE 26WEEK BILLS MATURE FEB 3 1994 PRICES OF INVESTMENTGRADE CORPORATE BONDS AS WELL AS JUNK ISSUES ENDED RELATIVELY UNCHANGED IN QUIET DEALINGS AN EXCEPTION IN THE JUNK MARKET WERE THE BONDS OF SOUTHLAND CORP WHICH TRADED UP BY ABOUT ONE POINT AFTER THE CONVENIENCESTORE OPERATOR AND FRANCHISER ANNOUNCED STRONG EARNINGS AND THE REDEMPTION OF ITS 2506 MILLION OF 12 SENIOR NOTES DUE DECEMBER 1996 SOUTHLAND'S 5 PAPER DUE IN 2003 TRADED UP ABOUT A POINT TO 75 TO YIELD 885 ONE TRADER SAID THE ONLY ENTRANT IN THE PRIMARY MARKET YESTERDAY WAS UNION ELECTRIC CO WHICH PRICED 75 MILLION OF 30YEAR FIRST MORTGAGE BONDS PRIMARY ACTIVITY IS EXPECTED TO REMAIN LIGHT THE UNION ELECTRIC FIRST MORTGAGE BONDS WERE PRICED AT 98878 TO YIELD 7242 THE BONDS NOT CALLABLE FOR 10 YEARS WERE PRICED 068 PERCENTAGE POINT ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ONE POSSIBLE ISSUER THIS WEEK IS FORD MOTOR CO WHICH IS REPORTEDLY CONSIDERING PRICING A 12YEAR BOND AT A SPREAD OF 085 PERCENTAGE POINT OVER TREASURYS THROUGH GOLDMAN SACHS & CO PRICES OF MUNICIPAL BONDS FINISHED NARROWLY MIXED AFTER A SLOW SESSION AS FOR THIS WEEK'S MUNI SUPPLY THE LATEST ROUND OF PRICINGS WILL GET GOING TODAY WITH A MASSIVE AMOUNT OF DEBT PHILADELPHIA'S 12 BILLION WATER AND WASTEWATER REVENUE BOND ISSUE IS TO BE PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP AND BIDS WILL BE TAKEN FOR NEW YORK CITY'S 11 BILLION OF VARIOUS REVENUE ANTICIPATION NOTES WITH PLENTY OF BUDGET NEWS AND MUNI SUPPLY ON THE WAY MOST MARKET PARTICIPANTS SEEM TO BE CONTENT TO STAY ON THE SIDELINES FOR NOW IN YESTERDAY'S TEPID SECONDARY DEALINGS DENVER'S 675 SERIES C AIRPORT REVENUE BONDS OF 2022 ENDED UNCHANGED AT 103 TO YIELD 648 THOSE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HILLSBOROUGH COUNTY FLA'S 550 UTILITY REVENUE REFUNDING BONDS OF 2016 FINISHED 1/8 POINT HIGHER AT 98 TO YIELD 564 GENE COLTER CONTRIBUTED TO THIS ARTICLE 9308030027 930803 WHO'S NEWS ACTION PERFORMANCE COS ACTION PERFORMANCE COS PHOENIX BILL E DOROUGH 51 YEARS OLD RESIGNED AS PRESIDENT OF THIS MARKETER OF DIECAST MINIATURE REPLICAS OF RACING VEHICLES BUT WILL REMAIN WITH THE COMPANY AS VICE PRESIDENT OF MARKETING AND SALES FOR ACTION'S SOUTHWEST REGION THE COMPANY SAID HE RESIGNED THE POST FOR PERSONAL REASONS AND WILL BE SUCCEEDED AS PRESIDENT BY FRED WAGENHALS 51 CHAIRMAN AND CHIEF EXECUTIVE SEPARATELY THE COMPANY NAMED TWO DIRECTORS V ANDREW GILL 48 AND BRUCE S GILL 47 RAISING BOARD MEMBERSHIP TO FOUR 9308030026 930803 WORLD MARKETS EUROPEAN SHARES RUN UP ON MONETARY CHANGES BUT SOME TEMPERED BY INTERESTRATE PROSPECTS A WALL STREET JOURNAL NEWS ROUNDUP EUROPEAN STOCK PRICES ROSE SOLIDLY YESTERDAY PROMPTED BY THE LOOSENING OF THE CONTINENT'S MONETARY LINKS YET IN THE WAKE OF THE ATTEMPT TO RESOLVE THE EUROPEAN FOREIGNEXCHANGE CRISIS LONGPROMISED RATE REDUCTIONS BY FRANCE AND OTHER MAJOR COUNTRIES HADN'T MATERIALIZED LEAVING ANALYSTS WONDERING WHAT ALL THE FUSS WAS ABOUT IF MONETARY POLICY WASN'T ABOUT TO BE EASED GREATLY IN PARIS THE BUYING SPREE CONTINUED SENDING THE MAIN INDEX UP 21 TO WITHIN A FRACTION OF ITS RECORD HIGH STILL COMPARED WITH THE 6 GAIN PARIS STOCKS RACKED UP THURSDAY AND FRIDAY SOME PARTICIPANTS BELIEVED YESTERDAY'S RISE WAS MODEST LONDON INVESTORS GLEEFULLY PUSHED STOCKS UP AND RESILIENT FRANKFURT SHARES GAINED MEANWHILE TOKYO EQUITIES SOFTENED WITH EXPORTORIENTED ISSUES FARING THE WORST SAPPED BY A RESURGENT JAPANESE CURRENCY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10914 UP 058 REFLECTING INCREASES IN EUROPEAN AND AMERICAN MARKETS AND A DROP IN ASIA/PACIFIC MARKETS EUROPEAN FINANCE MINISTERS AND CENTRAL BANKERS OVER THE WEEKEND EFFECTIVELY DISMANTLED THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM BY SHARPLY BROADENING THE BANDS IN WHICH CURRENCIES CAN FLUCTUATE AGAINST EACH OTHER THIS RAISED EXPECTATIONS THAT EUROPEAN MONETARY AUTHORITIES COULD CUT INTEREST RATES WITHOUT RISKING A WEAKENING OF THEIR CURRENCIES BEYOND THE PERMITTED LEVELS THE CHANGES WIDENED THE FLOAT FOR SEVEN CURRENCIES LEAVING THE NARROWER BAND FOR THE MARK AND DUTCH GUILDER UNCHANGED THE BRITISH POUND AND ITALIAN LIRA WITHDREW FROM THE ERM LAST SEPTEMBER IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FINISHED UP 152 POINTS TO 29417 AFTER RALLYING 29 POINTS DURING THE SESSION THE FT 30STOCK INDEX CLIMBED 114 POINTS TO 23290 VOLUME WAS 6979 MILLION SHARES COMPARED WITH 7628 MILLION SHARES IN THE PREVIOUS SESSION LONDON'S RISE WHICH WAS ERODED SOME BY LATE PROFITTAKING EXTENDED THE FT 100'S GAINS TO 114 POINTS IN THE PAST SIX SESSIONS ALTHOUGH THE MARKET DIDN'T GET IMMEDIATE RATE CUTS ANALYSTS AGREED THAT THE OUTLOOK REMAINS BRIGHT AND MANY SECURITIES FIRMS UPGRADED THEIR 1993 FORECASTS FOR THE LONDON MARKET AND OTHERS ACROSS EUROPE WITH BRITAIN'S BASE LENDING RATE NOW EXPECTED TO DROP TO 5 FROM 6 SOME STRATEGISTS SAID THE FT 100 COULD JUMP TO BETWEEN 3150 AND 3250 BY YEAR END AND PERHAPS TO 3300 WITHIN 12 MONTHS IN FRANKFURT THE DAX 30STOCK INDEX WHICH DROPPED 3047 POINTS FRIDAY AFTER GERMANY SPARKED THE EUROPEAN CURRENCY CRISIS BY NOT CUTTING AN IMPORTANT INTEREST RATE ROSE 1185 TO 181508 THE DAX OPENED SHARPLY LOWER AND THE VOLATILE SESSION REFLECTED UNCERTAINTY FOLLOWING THE WEEKEND ERM ALTERATION GERMAN OFFICIALS VOWED TO STICK TO THE GOALS OF A EUROPEAN COMMUNITY TREATY ON PROPOSED ECONOMIC POLITICAL AND MONETARY UNION AND SAID THE WIDER CURRENCYTRADING BANDS WILL ALLOW THE GERMAN CENTRAL BANK TO CONTINUE ITS CAUTIOUS INTERESTRATE CUTS IN PARIS THE CAC 40 SOARED 4315 POINTS TO 212903 JUST 029 POINT OFF THE RECORD REACHED MARCH 20 1990 IN AMSTERDAM SHARE PRICES FINISHED MIXED TO LOWER AMID SLIM VOLUME AS INVESTORS ASSESSED THE EFFECTS OF THE EMS REVAMP SOME EARLY LOSSES WERE RECOUPED AS SOME ANALYSTS VIEWED THE NEW ERM STRUCTURE AS GOOD FOR MOST DUTCH SHARES BECAUSE IT WOULD SUPPORT THE GUILDER CURRENCY'S STRENGTH AND ATTRACT SAFEHAVEN BUYING BUT OTHERS WARNED IT MAY HURT COMPANIES WITH SALES IN COUNTRIES WITH WEAKER CURRENCIES MILAN EQUITIES OPENED SHARPLY HIGHER AND ENDED WITH GAINS THOUGH WELL BELOW THEIR HIGHS AFTER A LATE SLIDE AS INVESTORS TEMPERED THEIR EXCITEMENT AFTER CONCLUDING THAT EUROPEAN RATES WOULD BE REDUCED ONLY SLOWLY AND GRADUALLY IN MADRID STOCKS ROSE BUT GAINS ALSO WERE LIMITED BY SOME PROFITTAKING ON LAST WEEK'S GAINS THE WIDENED ERM CURRENCYTRADING BANDS WERE VIEWED AS ALLOWING MORE ROOM FOR CUTS IN SPANISH INTEREST RATES WHICH WOULD BE BULLISH FOR THE STOCK MARKET STOCKHOLM SHARES INCHED UP PUSHING THE MARKET'S WINNING STREAK TO EIGHT CONSECUTIVE SESSIONS AND TO YET ANOTHER NEW HIGH FOR THIS YEAR AFTER A WEAK OPENING STOCKS GAINED THOUGH EUROPEAN INTEREST RATES FAILED TO DECLINE AS MUCH AS HOPED FOLLOWING THE ERM OVERHAUL IN BRUSSELS SHARES CLIMBED BROADLY IN THE WAKE OF A WEAKER BELGIAN FRANC AND LOWER SHORTTERM INTEREST RATES TAKING THE MAIN INDEX UP 14 AND SETTING A NEW HIGH ECLIPSING THE PREVIOUS RECORD SET JULY 16 IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 7671 POINTS FRIDAY FELL 3661 TO 2034353 AFTER MOVING IN A NARROW RANGE BETWEEN 2023132 AND 2041264 ON TUESDAY THE NIKKEI ROSE 14662 POINTS TO CLOSE THE MORNING SESSION AT 2049015 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 210 MILLION SHARES DOWN SHARPLY FROM 3553 MILLION SHARES IN THE PREVIOUS SESSION RETREATING ISSUES OVERWHELMED GAINERS 616336 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EASED 014 POINT FRIDAY LOST 512 TO 165479 SHARE PRICES INITIALLY INCHED LOWER BUT RECOVERED SOMEWHAT ON BUYING BY FOREIGN INVESTORS AND INVESTMENT TRUST FUNDS MARKET ATTENTION WAS FOCUSED ON FOREIGNEXCHANGE MOVEMENTS FOLLOWING THE EUROPEAN MONETARY CHANGES THE YEN CONTINUED TO SHOW RECORD STRENGTH AGAINST THE US DOLLAR BECAUSE OF THE EUROPEAN CURRENCY TENSIONS TOKYO INVESTORS WERE ANXIOUS ABOUT FURTHER YEN APPRECIATION WITH THE PROSPECT OF A CONTINUING SHIFT FROM EXPORTLINKED SHARES TO THOSE THAT WOULD BENEFIT FROM A STRONGER YEN MANY INVESTORS WERE AWAITING THE THURSDAY PARLIAMENTARY SESSION TO SELECT JAPAN'S NEXT PRIME MINISTER IN SYDNEY DRIVEN BY A SURGE IN THE PRICE OF GOLD SHARE PRICES FIRMED TAKING THE MAIN TO A NEW SIXYEAR HIGH TAIPEI EQUITIES FELL BROADLY ON DISAPPOINTMENT ABOUT THE SLIGHT INTERESTRATE CUT SATURDAY BY SOME COMMERCIAL BANKS MANILA SHARES CLIMBED IN HEAVY VOLUME ON BULLISH SENTIMENT ESPECIALLY FOR THE TELECOMMUNICATIONS SECTOR BUT IN SEOUL PRICES PLUNGED ON THE LOWEST TURNOVER SINCE OCT 5 1992 AS SELLING BY INDIVIDUALS OVERWHELMED LIGHT BUYING BY INSTITUTIONS AND FOREIGN INVESTORS STOCKS' FALL ACCELERATED IN THE FINAL MINUTES BECAUSE OF SELLING BY BANKS TO GET FUNDS TO MEET RESERVE REQUIREMENTS 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 9308030025 930803 MEDICINE FDA ATTACKS DRUG MAKERS' ADS TO DOCTORS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION STRUCK A BLOW AGAINST DRUGINDUSTRY SALES REPRESENTATIVES MAKING MISLEADING CLAIMS TO DOCTORS AN ADVERTISING PRACTICE THAT THE FDA SAYS IS INFLATING HEALTHCARE COSTS AND POSSIBLY HARMING PATIENTS IN A CONSENT DECREE FILED IN FEDERAL COURT IN NEW JERSEY KABI PHARMACIA INC AGREED TO CHANGE THE SALES PROMOTION AND AD PRACTICES FOR ITS ULCERATIVE COLITIS DRUG DIPENTUM WHICH WAS APPROVED FOR USE IN A SMALL CATEGORY OF PATIENTS BUT WHICH THE FDA CLAIMS WAS LATER TOUTED FOR A WIDE VARIETY OF PATIENTS KABI WITHOUT ADMITTING WRONGDOING SIGNED THE DECREE AND AGREED TO MAKE THE CHANGES KABI ALSO WILL PAY THE FDA 85000 FOR THE COST OF ITS ONEYEAR INVESTIGATION AND SET UP A 300000 ESCROW ACCOUNT TO PAY FOR CORRECTIVE ADS THE FDA SAYS THE PROCEEDING IS ITS FIRST SIGNIFICANT CASE IN WHICH THE AGENCY HAS BEEN ABLE TO DOCUMENT FALSE AND ILLEGAL CLAIMS BY A COMPANY'S SALES REPRESENTATIVES A PRACTICE THAT THE AGENCY SUSPECTS IS PREVALENT AS A PHYSICIAN I THINK WE WOULD BE BURYING OUR HEAD IN THE SAND TO ASSUME THIS IS AN ISOLATED INSTANCE SAID FDA COMMISSIONER DAVID KESSLER IN AN INTERVIEW IN A STATEMENT HE SUGGESTED THAT THE KABI CASE UNDERCUTS THE NOTION PUSHED BY SOME DRUG INDUSTRY LEADERS THAT EXPENSIVE PROMOTION AND AD CAMPAIGNS ARE CRUCIAL TO EDUCATING PHYSICIANS IN THIS CASE DR KESSLER ASSERTED THE COMPANY'S GOAL WAS TO INCREASE SALES AT THE EXPENSE OF PATIENT CARE PROMOTIONS NOT AIMED AT PROPER TREATMENT ARE ONE OF THE FACTORS CONTRIBUTING TO THE RISING COSTS OF HEALTH CARE IN THIS COUNTRY HE SAID SEN EDWARD KENNEDY CHAIRMAN OF THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE DECLARED IN A STATEMENT THAT THE FDA'S ACTION SENDS A STRONG MESSAGE TO THE PHARMACEUTICAL INDUSTRY THAT FALSE ADVERTISING AND IMPROPER MARKETING OF PRESCRIPTION DRUGS WILL NOT BE TOLERATED THE MASSACHUSETTS DEMOCRAT SAID THE PANEL PLANS OVERSIGHT HEARINGS IN THE CURRENT CONGRESS ON ABUSES IN THE MARKETING OF PRESCRIPTION DRUGS IT HELD HEARINGS ON THE ISSUE IN DECEMBER 1990 KABI A UNIT OF SWEDEN'S PROCORDIA AB IS ACCUSED BY THE FDA OF ILLEGALLY TOUTING DIPENTUM FOR THE TREATMENT OF MILD MODERATE AND SEVERE ACTIVE ULCERATIVE COLITIS FOR USE IN CHILDREN AS A FIRSTCHOICE THERAPY FOR THE DISEASE AND AS SUPERIOR TO SULFASALAZINE WHICH IS MADE BY KABI AND SOME OTHER FIRMS SULFASALAZINE IS THE MOST COMMON DRUG PRESCRIBED FOR THE DISEASE IN WHICH ULCERS FORM IN THE COLON IN PISCATAWAY NJ A SPOKESMAN FOR KABI SAID DIPENTUM WAS PROMOTED TO PHYSICIANS BECAUSE THAT WAS THE NEW PRODUCT ON THE MARKET SULFASALAZINE HAS BEEN AROUND FOR SOME YEARS DIPENTUM HOWEVER HAS BEEN APPROVED BY THE FDA ONLY TO HELP ADULTS REMAIN IN REMISSION FROM THE DISORDER MOREOVER THE AGENCY CONCERNED ABOUT THE HIGH INCIDENCE OF DIARRHEA WITH THE DRUG ALLOWS IT TO BE USED ONLY BY ADULTS WHO CAN'T TOLERATE SULFASALAZINE OFFICIALS TOOK PAINS TO DIFFERENTIATE KABI'S ACTIONS FROM THE PRACTICE OF PROMOTING DRUGS FOR OFFLABEL USES THOSE THAT HAVEN'T BEEN STUDIED OR THAT HAVEN'T BEEN SPECIFICALLY ADDRESSED BY THE AGENCY IN THIS INSTANCE THE AGENCY DELIBERATELY ALLOWED ONLY NARROW USES FOR DIPENTUM BECAUSE OF CONCERNS ABOUT ITS SAFETY IN ADULTS AND ITS EFFECTIVENESS IN CHILDREN AGENCY OFFICIALS SAID KABI'S CORRECTIVE EFFORTS WILL FOCUS ON MISLEADING AND FALSE CLAIMS BY ITS REPRESENTATIVES IN SALES PRESENTATIONS TO PHYSICIANS THE EFFORTS WILL INCLUDE A SIXMONTH CAMPAIGN OF REMEDIAL ADVERTISEMENTS IN MEDICAL JOURNALS AND LETTERS TO PHYSICIANS WHO HAVE BEEN CONTACTED BY KABI'S SALES FORCE IN THE CONSENT DECREE KABI ALSO AGREED THAT IT WILL DESTROY PROMOTIONAL MATERIAL THAT THE AGENCY CONTENDS IS IMPROPER THAT IT WON'T MAKE ANY CLAIMS THAT DIPENTUM IS SAFE AND EFFECTIVE FOR USES FOR WHICH IT ISN'T APPROVED AND THAT IT WILL SEEK FDA APPROVAL FOR ALL NEW PROMOTIONS IN THE NEXT YEAR IN ADDITION KABI AGREED TO CONDUCT AN FDAAPPROVED CORRECTIVE TRAINING PROGRAM FOR ITS SALES MARKETING REGULATORY AND LEGAL PERSONNEL 9308030024 930803 BUSINESS BRIEF CENTRAL SOYA CO CHIEF RESIGNS FOR BUYOUT OF COMPANY'S FEED BUSINESS CENTRAL SOYA CO FORT WAYNE IND SAID THAT DAVID H SWANSON CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE GRAINPROCESSING COMPANY RESIGNED TO LEAD A MANAGEMENT BUYOUT OF THE COMPANY'S NORTH AMERICAN ANIMALFEED BUSINESS TERMS OF THE BUYOUT HAVE BEEN APPROVED BY CENTRAL SOYA'S FRENCH CORPORATE PARENT ERIDANIA BEGHINSAY WHICH IN TURN IS 52OWNED BY THE ITALIAN CONGLOMERATE FERRUZZI FINANZIARIA SPA THE TRANSACTION IS EXPECTED TO CLOSE THIS FALL A CENTRAL SOYA SPOKESMAN SAID THE FEED BUSINESS CONTRIBUTED NEARLY 700 MILLION OF CENTRAL SOYA'S ROUGHLY 2 BILLION IN REVENUE LAST YEAR THE COMPANY SAID CARL HAUSMANN CENTRAL SOYA'S CHIEF OPERATING OFFICER WILL SUCCEED MR SWANSON THE COMPANY SAID 9308030022 930803 INTERNATIONAL TECHNOLOGY CORP TORRANCE CALIF INTERNATIONAL TECHNOLOGY CORP SAID IT RECEIVED AN EIGHTYEAR 218 MILLION CONTRACT TO ANALYZE ENVIRONMENTAL WASTE FROM A UNIT OF PITTSBURGHBASED WESTINGHOUSE ELECTRIC CORP INTERNATIONAL TECHNOLOGY SAID WESTINGHOUSE HANFORD CO MADE THE AWARD FOR THE PROVISION OF ANALYTICAL SERVICES AT THE DEPARTMENT OF ENERGY'S HANFORD SITE FACILITY IN RICHLAND WASH THE CONTRACT HAS AN ADDITIONAL FIVEYEAR OPTION PERIOD ROBERT B SHEH INTERNATIONAL TECHNOLOGY PRESIDENT AND CHIEF OPERATING OFFICER SAID IN A STATEMENT THAT THE COMPANY WILL BEGIN A SIGNIFICANT EXPANSION OF CAPACITY AT ITS RICHLAND LABORATORY AND HIRE AN UNSPECIFIED NUMBER OF NEW WORKERS 9308030021 930803 CORPORATE FOCUS SUNBEAMOSTER'S NEW CHIEF MAY CAST A SHORT SHADOW SCHIPKE'S LIST OF PROBLEMS IS TOPPED BY HIS CONTROLLING STOCKHOLDERS BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL AS THE NEW CHIEF EXECUTIVE OFFICER OF SUNBEAMOSTER CO ROGER SCHIPKE INHERITS A COMPANY WITH DECIMATED MANAGEMENT RANKS CUTTHROAT COMPETITORS AND CASH RESERVES DEPLETED BY A RECENT 1736 MILLION SETTLEMENT OF A NASTY LEGAL DISPUTE ALTHOUGH MR SCHIPKE WHO WAS NAMED YESTERDAY AND ONCE RAN GENERAL ELECTRIC CO'S APPLIANCE DIVISION HAS EXPERIENCE SUITED TO THE OPERATIONAL CHALLENGES AT THE 1 BILLION CONSUMERPRODUCTS CONCERN THE TURMOIL AT SUNBEAM HAS LEFT GNAWING QUESTIONS OF HOW MUCH CONTROL HE WILL HAVE IN FACT WITH SUNBEAMOSTER'S CONTROLLING INVESTORS IN A NEWFOUND POSITION OF FREEDOM AS A RESULT OF THE LEGAL SETTLEMENT SPECULATION IS RISING ON WALL STREET THAT THE COMPANY COULD BE TAKEN OVER EVEN IF IT IS NOT MR SCHIPKE 56 YEARS OLD MUST CONTEND WITH THE BIG INVESTORS MONEY MANAGERS MICHAEL PRICE AND MICHAEL STEINHARDT PAUL KAZARIAN FORMER CHAIRMAN AND CHIEF EXECUTIVE CONTENDED THEY FORCED HIM OUT IN JANUARY BECAUSE OF DIFFERENCES THEY HAD OVER THE MANAGEMENT OF THE COMPANY AND HOW TO REALIZE THEIR INVESTMENT GAINS CHARLES THAYER A MEMBER OF THE BOARD WAS INTERIM CHAIRMAN UNTIL MR SCHIPKE'S APPOINTMENT NEGOTIATIONS WITH SEVERAL CANDIDATES FOR MR KAZARIAN'S JOB BROKE DOWN OVER THE ISSUE OF HOW MUCH A NEW CHIEF EXECUTIVE WOULD BE BEHOLDEN TO MESSRS PRICE AND STEINHARDT SAY PEOPLE CLOSE TO THE SELECTION PROCESS MR PRICE'S MUTUAL SERIES FUNDS INC AND MR STEINHARDT'S STEINHARDT PARTNERS LP HEDGE FUND HOLD EQUAL STAKES IN A PARTNERSHIP THAT OWNS 70 OF SUNBEAM'S COMMON STOCK MR KAZARIAN'S STAKE IN THAT PARTNERSHIP WAS BOUGHT OUT IN THE LEGAL SETTLEMENT IN WHICH SUNBEAM REPURCHASED 124 MILLION SHARES AT 14 APIECE AS GENERAL PARTNER MR KAZARIAN WAS IN A POSITION TO BLOCK THE DISTRIBUTION OF THE CONTROLLING BLOCK TO MESSRS PRICE AND STEINHARDT NOW THE TWO INVESTORS CAN OBTAIN THE SHARES AND SELL THEM IF THEY WISH WITH KAZARIAN GONE ITS A STRAIGHTFORWARD QUESTION OF WHAT PRICE AND STEINHARDT WILL DECIDE IS A WORKABLE EXIT STRATEGY FOR THEIR OWN HUGE INVESTMENTS SAYS AN INVESTMENT BANKER WHO IS CLOSE TO THE COMPANY BECAUSE THEY CAN'T JUST DUMP ALL THAT STOCK ONTO THE MARKET WITHOUT DEPRESSING THE PRICE A REAL ALTERNATIVE MAY BE TO SELL THE COMPANY TO A SINGLE BUYER IN ANY EVENT IT'S TURNING INTO A REAL CONUNDRUM AMONG THE BIG INCENTIVES FOR MESSRS PRICE AND STEINHARDT TO CONSIDER SELLING ARE BIG UNREALIZED GAINS IN THEIR HOLDINGS JOINTLY VALUED AT ABOUT 900 MILLION IN ADDITION MR PRICE'S HOLDINGS ARE VALUED ON THE BOOKS OF HIS MUTUAL FUNDS AT SUBSTANTIALLY BELOW MARKET VALUE MEANING HE WOULD GET A BIG INCREASE IN NET ASSET VALUE AND MANAGEMENT FEES BY DISTRIBUTING THE SHARES TO THE FUND AND VALUING THEM AT MARKET PRICES MR PRICE DECLINED COMMENT ON HIS PLANS FOR THE STAKE AND MR STEINHARDT DIDN'T RETURN CALLS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SUNBEAMOSTER SHARES FELL 25 CENTS TO 1925 MR SCHIPKE SINCE 1990 THE CHAIRMAN AND CHIEF EXECUTIVE OF RYLAND GROUP INC A HOME BUILDING AND MORTGAGE FINANCE FIRM COULDN'T BE REACHED FOR COMMENT ON HIS PLANS FOR THE COMPANY BUT MR THAYER SAYS THERE ARE NO PLANS TO SELL THE COMPANY PRIOR TO JOINING RYLAND MR SCHIPKE'S TENURE AS HEAD OF GENERAL ELECTRIC'S MAJOR APPLIANCE DIVISION WAS ROCKY AS THE UNIT EXPERIENCED WIDE SWINGS IN EARNINGS AND TOOK A 300 MILLION CHARGE IN 1988 BECAUSE OF MALFUNCTIONS IN ITS REFRIGERATOR COMPRESSORS MR SCHIPKE LEFT GENERAL ELECTRIC IN 1990 OF MR SCHIPKE'S TENURE AT GENERAL ELECTRIC MR THAYER SAYS I'D RATHER HAVE AN EXECUTIVE WHO HAS FACED A LITTLE ADVERSITY AND DEALT WITH IT LIKE ROGER THAN ONE WHO HAS NEVER BEEN TESTED RYLAND GROUP SAID ANDRE W BREWSTER 68 A DIRECTOR SINCE 1977 WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE ON AN INTERIM BASIS WHILE IT SEEKS A PERMANENT SUCCESSOR TO MR SCHIPKE ALAN P HOBLITZELL JR EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL BECOME ACTING CHIEF OPERATING OFFICER ROBERT J GAW WILL CONTINUE AS PRESIDENT OF RYLAND MORTGAGE CO RODERICK HILLS A SUNBEAM DIRECTOR WHO HEADED THE SEARCH COMMITEE INDICATED THAT THE BOARD EXPECTS MR SCHIPKE TO RUN THINGS FOR SOME TIME SAYING IN A STATEMENT THAT HE HAS THE EXPERIENCE TALENT AND STRATEGIC VISION REQUIRED FOR SUNBEAM TO REACH ITS FULL POTENTIAL ASSESSING WHETHER SUNBEAM'S FORTUNES ARE DUE TO RISE OR FALL A CENTRAL ISSUE IN DECIDING WHETHER TO COURT A BUYER IS A TRICKY CALCULUS ANALYSTS SAY THE COMPANY IS IN FIGHTING TRIM AND EXPECT BIG EARNINGS GAINS THROUGH 1994 BUT QUESTIONS REMAIN ABOUT WHETHER EIGHT MONTHS WITHOUT STRONG EXECUTIVE LEADERSHIP HAVE INJURED THE COMPANY'S STRONG FRANCHISES IN ITS TWO LARGEST BUSINESS LINES HOME APPLIANCES AND OUTDOOR FURNITURE AFTER MR KAZARIAN LEFT SUNBEAM ALSO LOST TWO OF HIS LIEUTENANTS GENERAL COUNSEL MICHAEL LEDERMAN AND CHIEF FINANCIAL OFFICER ROBERT SETRAKIAN WHO ALSO HELPED PULL THE COMPANY OUT OF BANKRUPTCYLAW PROCEEDINGS IN 1990 IT'S HARD TO TELL WHAT ILL EFFECTS THE STRIFE AT SUNBEAM MAY HAVE HAD ON ITS OPERATIONS SAYS ANDREW SHORE AN ANALYST WITH PAINEWEBBER INC THE COMPANY'S BEEN ON AUTOPILOT FOR MONTHS AND STILL EARNINGS ARE STRONG ONLY TIME WILL TELL WHETHER ALMOST A YEAR WITHOUT A STRONG MANAGEMENT TEAM OR CLEAR STRATEGIC DIRECTION WILL SLOW WHAT IS EXPECTED TO BE STRONG EARNINGS GROWTH IN THE COMING YEAR FOR THE SECOND QUARTER SUNBEAM POSTED A 48 RISE IN NET INCOME TO 247 MILLION OR 27 CENTS A SHARE FROM 164 MILLION OR 22 CENTS A SHARE IN THE YEARAGO QUARTER THOUGH SALES WERE 293 MILLION UP 14 ABOUT A THIRD OF THAT RISE WAS FROM THE ACQUISITION IN DECEMBER OF ARKLA INC'S GAS GRILL UNIT MANUFACTURING CONSOLIDATIONS WHICH CUT UNIT COSTS AND BOOSTED PROFITS WERE INITIATED LATE LAST YEAR UNDER MR KAZARIAN ANALYSTS MOST OF WHOM ESTIMATE EARNINGS OF 1 A SHARE FOR 1993 AND 125 IN 1994 A HEALTHY 25 GROWTH RATE STRESS THAT 70 OF SUNBEAM'S PROFITS COME FROM MARKETS WHERE ITS PRODUCTS HOLD LEADING POSITIONS SUNBEAM OPERATES IN SEVERAL FRAGMENTED MARKETS WHERE IT IS LARGER THAN COMPETITORS AND CAN CUT BETTER DEALS WITH RETAIL CHAINS LIKE WALMART STORES INC AND KMART CORP SAYS MARK HASSENBERG AN ANALYST WITH DONALDSON LUFKIN AND JENRETTE SECURITIES INC AS WELL MR HASSENBERG POINTS OUT 80 OF SUNBEAM'S SALES ARE IN THE US AND ALMOST ALL THE REMAINDER IN LATIN AMERICA AND CANADA THEY HAVEN'T EVEN TOUCHED EUROPE YET THIS COMPANY HAS PLENTY OF PLACES TO GROW YET SUNBEAM AFTER RECOVERING AT AN ASTONISHING PACE SINCE IT EMERGED FROM BANKRUPTCY IN 1990 STUMBLED A BIT THIS PAST SPRING ACCORDING TO SEVERAL MERCHANTS WHO ASKED NOT TO BE NAMED THEY SAY THE COMPANY SHIPPED 10 TO 15 LESS OUTDOOR FURNITURE AND GRILLS THAN IT HAD PROMISED STORES IN APRIL THE BEGINNING OF THE KEY SELLING SEASON FOR THOSE ITEMS SUNBEAM BLAMED LATE SPRING SNOWS AND MANUFACTURING SNAGS FOR THE SHORTFALL SUCH STUMBLES CAN PROVE COSTLY IN SUNBEAM'S FIERCELY COMPETITIVE BUSINESS ONE OF ITS LEADING COMPETITORS BOSTONBASED SYRATECH CORP POSTED 1992 SALES OF 174 MILLION UP 38 FROM THE PREVIOUS YEAR AS ITS TYPE OF WHITE RESIN LAWN FURNITURE LESS EXPENSIVE THAN SUNBEAM'S CORE ALUMINUM FURNITURE GREW TO ABOUT 33 OF THE US OUTDOOR FURNITURE MARKET 9308030020 930803 MARKETING & MEDIA AMERICAN GREETINGS MACHINES CLEVELAND OHIO AMERICAN GREETINGS CORP IN A MOVE TO PLACE MORE CREATACARD VENDING MACHINES IN MASS RETAIL OUTLETS INTRODUCED A MACHINE THAT IS SLIGHTLY SMALLER THAN THE ORIGINAL THE NEW MACHINE IS THREE FEET WIDE OR ONE FOOT NARROWER THAN BEFORE AMERICAN GREETINGS SAID WITH THE SMALLER MACHINE IT EXPECTS TO PRODUCE 35 MILLION IN CREATACARD SALES IN FISCAL 1994 CREATACARD IS A COMPUTER VENDING MACHINE THAT ALLOWS CUSTOMERS TO PICK THEIR OWN DESIGNS AND WRITE THEIR OWN MESSAGE TO MAKE CUSTOMIZED GREETING CARD 9308030018 930803 MARKETING & MEDIA AT ORIOLES SALE BIDDERS SEND PRICE OUT OF BALLPARK GROUP LED BY PETER ANGELOS WINS IN COURT AUCTION WITH 174 MILLION OFFER BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A GROUP OF INVESTORS LED BY ATTORNEY PETER ANGELOS BOUGHT MAJOR LEAGUE BASEBALL'S BALTIMORE ORIOLES FOR A RECORDSETTING 174 MILLION AT A BANKRUPTCYCOURT AUCTION HERE THE PREMIUM PRICE TAG NEARLY 70 MILLION MORE THAN THE PREVIOUS HIGH BID FOR A PROFESSIONAL BASEBALL TEAM WAS REACHED AFTER A FRENZIED AFTERNOON OF BIDDING AND NEGOTIATIONS THAT SAW TWO COMPETITORS JOIN FORCES MR ANGELOS WHO MADE MUCH OF HIS FORTUNE REPRESENTING PLAINTIFFS SUING FORMER ASBESTOS MAKERS AND HIS ECLECTIC BAND OF NATIVE MARYLANDERS INCLUDING NOVELIST TOM CLANCY MOVIE DIRECTOR BARRY LEVINSON AND TENNIS PRO PAM SHRIVER TEAMED UP WITH A GROUP LED BY CINCINNATI INVESTOR WILLIAM O DEWITT JR THEY OUTBID ART DEALER JEFFREY LORIA WHOSE FINAL OFFER WAS 173 MILLION MR ANGELOS'S GROUP WILL OWN THE MAJORITY OF THE CLUB ALTHOUGH PRECISE NUMBERS HAVEN'T BEEN MADE PUBLIC MR ANGELOS WILL BE THE TEAM'S GENERAL PARTNER MR DEWITT WILL BE IN CHARGE OF BASEBALL OPERATIONS AND MR CLANCY WILL BE CHIEF OF PUBLIC AFFAIRS MR ANGELOS SAID THE TEAM'S PURCHASE WHICH STILL MUST BE APPROVED BY MAJOR LEAGUE BASEBALL TURNED INTO AN OPEN AUCTION AFTER OWNER ELI JACOBS FILED FOR BANKRUPTCYCOURT PROTECTION MR JACOBS EARLIER AGREED TO SELL THE TEAM TO MR DEWITT FOR 1413 MILLION BUT THEN OTHER BIDDERS EMERGED INCLUDING MR ANGELOS WHO TOPPED MR DEWITT'S OFFER AT A JUNE HEARING BY JOINING MR DEWITT MR ANGELOS GOT THE BENEFIT OF A 1 MILLION CREDIT THAT MR DEWITT EARNED FROM THE MONEY HE SPENT IN THAT EARLIER NEGOTIATION SO THE ACTUAL COST TO THE SUCCESSFUL BIDDERS WILL ONLY BE 173 MILLION THE HIGHER PRICE TAG WILL BE A BOON TO THE CREDITORS OF MR JACOBS WHO OWNS 87 OF THE CLUB AFTER ABOUT 90 MILLION OF LOANS TO MR JACOBS SECURED BY ORIOLES' STOCK AND TO THE TEAM ITSELF ARE ACCOUNTED FOR ABOUT 65 MILLION WILL BE LEFT FOR MR JACOBS'S UNSECURED CREDITORS THERE IS ABOUT 170 MILLION IN UNSECURED DEBT AND THE ORIOLES ARE BY FAR MR JACOBS'S LARGEST ASSET THE ORIOLES' STEEP VALUE IS ATTRIBUTED TO THE TEAM'S HOME ORIOLE PARK AT CAMDEN YARDS THE ORIOLES DREW A TEAM RECORD 35 MILLION FANS LAST YEAR THEIR FIRST SEASON IN THE NEW STADIUM UP FROM 25 MILLION IN 1991 AND THE ORIOLES HAVE A 30YEAR LEASE CONSIDERED AMONG THE MOST LUCRATIVE FOR A TEAM IN BASEBALL BECAUSE IT PROVIDES TEAM OWNERS WITH AN UNUSUALLY GENEROUS CHUNK OF TICKET AND CONCESSION REVENUES THE ORIOLES HAD AN ESTIMATED OPERATING PROFIT OF 20 MILLION LAST YEAR 9308030017 930803 COMMODITIES TURMOIL IN CURRENCY MARKETS SPAWNS HECTIC DAY OF PRECIOUS METALS TRADING IN ASIA EUROPE US BY JEFFREY TAYLOR AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL TURMOIL IN WORLD CURRENCY MARKETS SPAWNED A WILD DAY OF PRECIOUS METALS TRADING IN ASIA EUROPE AND THE US MEANWHILE PLATINUM PRICES SURGED AFTER EARLY WEAKNESS WITH THE ACTIVELY TRADED OCTOBER CONTRACT SETTLING AT 42310 AN OUNCE UP 420 SILVER FOR SEPTEMBER DELIVERY SETTLED AT 54580 AN OUNCE AFTER A VOLATILE SESSION DOWN FIVE CENTS ON THE DAY FOR THE PAST FEW WEEKS PRECIOUS METALS PRICES HAVE BENEFITED FROM A CLIMATE OF ECONOMIC UNCERTAINTY BOTH IN EUROPEAN CURRENCY MARKETS AND SURROUNDING PRESIDENT CLINTON'S EFFORTS TO PUSH A BUDGET THROUGH CONGRESS AN AGREEMENT AMONG EUROPEAN COMMUNITY FINANCE MINISTERS EARLY YESTERDAY TO ALLOW SEVEN OF NINE EUROPEAN CURRENCIES TO FLUCTUATE MORE FREELY EASED THE UNCERTAINTY TEMPORARILY AND PROMPTED PROFITTAKING IN GOLD MARKETS GOLD WAS OVERDUE FOR A LITTLE BIT OF PROFITTAKING AND WAS A LITTLE OVEREXTENDED TECHNICALLY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE SIMPLE FACT THAT THERE WASN'T A TOTAL COLLAPSE OF THE EUROPEPAN RATE MECHANISM OVER THE WEEKEND WAS AN EXCUSE FOR PROFITTAKING AFTER THE EARLY WEAKNESS HOWEVER THE GOLD MARKET IN NEW YORK REBOUNDED AS BULLISH SUPPLYANDDEMAND FACTORS REASSERTED THEMSELVES SENTIMENT REMAINS CONSTRUCTIVE FOR ALL PRECIOUS METALS SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER INVESTOR INTEREST HAS PICKED UP SHARPLY RUSSIAN SALES OF PRECIOUS METALS ARE DOWN PHYSICAL DEMAND FOR JEWELRY IS HOLDING UP WELL THE CONTINUING UNCERTAINTY IN CURRENCY MARKETS AND WITH THE PRESIDENT'S TAX PACKAGE IS ALSO SUPPORTIVE OPEN INTEREST ON NEW YORK'S COMEX HAS MORE THAN DOUBLED THIS YEARTO ABOUT 206000 CONTRACTS LAST WEEK THE EQUIVILANT OF 206 MILLION OUNCES OF GOLD A TOTAL HIGHER THAN SOUTH AFRICA'S ANNUAL GOLD OUTPUT IN HONG KONG FEARS THAT EUROPE'S ERM MIGHT COLLAPSE CAUSED GOLD TO SURGE TO A THREEYEAR PEAK OF 41025 YESTERDAY BEFORE SUBSIDING TO 40325 AT THE CLOSE OF TRADING IN LONDON CURRENCY TURMOIL WAS THE CATALYST SAID TED ARNOLD PRECIOUS METALS ANALYST AT MERRILL LYNCH IN LONDON MR ARNOLD SAID HE EXPECTS TO SEE GOLD'S PRICE FLUCTUATE WILDLY FOR THE NEXT THREE MONTHS BECAUSE OF MASSIVE SPECULATIVE ACTIVITY IN WORLD MARKETS GOLD SURGED IN THE PAST FEW DAYS MAINLY BECAUSE DEALERS WERE FRANTICALLY BUYING TO COVER OPTIONS THAT WERE GRANTED AT LOWER PRICES AND THIS SPECULATIVE INFLUENCE OVER THE MARKET IS LIKELY TO CONTINUE HE SAID COMMODITY FUNDS INVESTORS AND SPECULATORS WIELD HUGE BUYING POWER WHICH MAY CONTINUE TO DRIVE GOLD HIGHER MEANWHILE SOME FAR EASTERN HOLDERS WHO BOUGHT GOLD AT MUCH LOWER PRICES ARE SELLING DEALERS SAY SUPPLIES OF GOLD SCRAP AT EUROPEAN REFINERIES JUMPED AS JEWELERS AND OTHER INDUSTRIES ALSO TOOK ADVANTAGE OF HIGHER PRICES AND SOLD GOLD ITEMS THE MARKET REMAINS CONFUSED ABOUT THE INTENTIONS OF SOME CENTRAL BANKS WHICH HAVE SOLD CALL OPTIONS GIVING BUYERS THE RIGHT TO BUY SOME OF THEIR GOLD AT PRESPECIFIED PRICES ABOUT 50 TONS OF THIS GOLD WAS DELIVERED AGAINST OPTIONS IN THE SECOND QUARTER ACCORDING TO THE UNION BANK OF SWITZERLAND YET BULLION DEALERS AREN'T SURE WHETHER OTHER CENTRAL BANKS WILL DELIVER GOLD OR ROLL OVER POSITIONS AT A LOSS WHEN OPTIONS ARE DUE TO EXPIRE SOME WELLPLACED EUROPEAN DEALERS ALSO CONTEND THAT CHINA'S CENTRAL BANK WHICH BOUGHT GOLD FROM THE BANK OF NETHERLANDS WHEN THE PRICE WAS AROUND 330 AN OUNCE BEGAN SELLING IN RECENT WEEKS THE CHINESE AUTHORITIES REFUSE TO COMMENT ON THEIR TRADING BUT SUCH SALES SEEM LOGICAL TO DEALERS FOR EXAMPLE CHINA MADE A PROFIT OF MORE THAN 20 IN ONLY A FEW MONTHS NOW MAY BE A GOOD TIME TO TAKE THE PROFIT BECAUSE HIGH TRADING VOLUME IN EUROPE AND THE US MAKES IT EASY TO FIND BUYERS MOREOVER CHINESE MONETARY AUTHORITIES ARE TIGHTENING CREDIT IN AN EFFORT TO CURB RUNAWAY INFLATION AND STABILIZE THE COUNTRY'S CURRENCY GOLD PRICES IN LOCAL CHINESE MARKETS ARE MUCH HIGHER THAN THE INTERNATIONAL PRICE AND PURCHASES ARE FALLING THE SLUMP IN RECENT ASIAN DEMAND CONTRASTS WITH MASSIVE PURCHASES BETWEEN OCTOBER 1992 AND MARCH THIS YEAR DEALERS SAY IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES ROSE YESTERDAY AFTER THE AMERICAN FARM BUREAU ESTIMATED THE NATIONAL SOYBEAN CROP AT A LOWERTHANEXPECTED 1812 BILLION BUSHELS AFTER TRADING ENDED AT THE CHICAGO BOARD OF TRADE HOWEVER THE US AGRICULTURE DEPARTMENT'S WEEKLY CROPCONDITION REPORT SHOWED IMPROVING SOYBEAN AND CORN CROPS THE REPORT IS LIKELY TO EXERT DOWNWARD PRESSURE ON THE CBOT'S GRAIN MARKET TODAY THE REPORT ESTIMATED THAT 39 OF THE NATION'S SOYBEAN CROP IS IN GOOD CONDITION UP FROM 35 LAST WEEK IN IOWA WHICH HAS BEEN PARTICULARLY HARD HIT BY FLOODING THIS YEAR THE USDA SAID THE PERCENTAGE OF THE SOYBEAN CROP IN GOOD CONDITION ROSE TO 23 FROM 13 LAST WEEK THE NATION'S CORN CROP WAS ALSO SAID TO HAVE IMPROVED SLIGHTLY THE USDA ESTIMATED THAT 44 OF THE CROP WAS IN GOOD CONDITION UP FROM 41 LAST WEEK YESTERDAY AT THE CBOT SOYBEANS FOR NOVEMBER DELIVERY ROSE 1850 CENTS TO 70650 A BUSHEL WHILE CORN FOR DECEMBER DELIVERY WAS UP FIVE CENTS TO 24675 A BUSHEL ENERGY HEATING OIL AND GASOLINE PRICES ROSE IN LIGHT TRADING AFTER NEWS THAT A PORTION OF AN EXXON CORP REFINERY IN BATON ROUGE LA CAUGHT FIRE BUT A PLANT SPOKESMAN SAID THAT THE FIRE WAS CONTAINED WHERE IT STARTED AT A COKING UNIT THE REST OF THE 421000BARRELADAY FACILITY APPEARED TO BE UNDAMAGED AND CONTINUED TO OPERATE ALTHOUGH REFINING INDUSTRY EXECUTIVES POINTED TO AMPLE SUPPLIES OF HEATING OIL AND GASOLINE PRICES NONETHELESS ROSE AFTER OPENING LOWER ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR SEPTEMBER DELIVERY ENDED AT 5118 CENTS A GALLON UP 037 CENT SEPTEMBER GASOLINE FINISHED AT 5217 CENTS UP 001 CENT 9308030016 930803 BUSINESS BRIEF SEQUOIA SYSTEMS INC GLOBAL SETTLEMENT ACCORD IN SEVERAL SUITS IS REACHED SEQUOIA SYSTEMS INC SAID IT REACHED A GLOBAL SETTLEMENT AGREEMENT IN SEVERAL CLASSACTION LAWSUITS THAT NAMED THE COMPANY ITS INDEPENDENT ACCOUNTANTS AND OTHER DEFENDANTS THE MARLBOROUGH MASS COMPANY SAID THE SETTLEMENT EXPANDS A PRELIMINARY AGREEMENT REACHED IN APRIL 1993 THAT RESOLVES CLAIMS ARISING FROM RESTATEMENTS OF SEQUOIA'S HISTORICAL FINANCIAL RESULTS SEQUOIA SAID THE TOTAL CASH PAYMENT UNDER THE GLOBAL SETTLEMENT AGREEMENT HAS BEEN INCREASED TO 3125000 FROM 2050000 OF THE TOTAL CASH PAYMENT 15 MILLION WILL BE PAID BY SEQUOIA'S INSURANCE CARRIER AND THE BALANCE BY THE DEFENDANTS THE COMPANY SAID THE AMOUNT OF CONVERTIBLE PREFERRED STOCK ISSUABLE BY SEQUOIA UNDER THE REVISED SETTLEMENT AGREEMENT HAS BEEN INCREASED TO 2875000 FROM 28 MILLION THE COMPANY SAID FINAL APPROVAL OF THE GLOBAL AGREEMENT BY A FEDERAL COURT IN MASSACHUSETTS WILL BE REQUIRED AFTER GIVING NOTICE TO MEMBERS OF THE EXPANDED CLASS A HEARING IS SCHEDULED FOR SEPT 9308030015 930803 INTERNATIONAL BRIEF FONDIARIA SPA INSURANCE CONCERN RECEIVES APPROVAL FOR RIGHTS ISSUE ITALIAN INSURANCE GROUP FONDIARIA SPA SAID SHAREHOLDERS APPROVED ITS PROPOSED 1058 TRILLION LIRE 6564 MILLION RIGHTS ISSUE BUT ONE OF THE GROUP'S MAJOR SHAREHOLDERS GAIC SPA WON'T TAKE UP ALL OF ITS SHARE OF THE ISSUE GAIC SAID IN A LETTER TO STOCK MARKET WATCHDOG AGENCY CONSOB AS A RESULT GAIC'S HOLDING IN MILANBASED FONDIARIA THROUGH DIRECT AND INDIRECT STAKES WILL FALL TO 34 FROM 51 THE FONDIARIA CAPITAL INCREASE IS PART OF A WIDEREACHING RESTRUCTURING PLAN FOR ITS OTHER MAJOR SHAREHOLDER FERRUZZI FINANZIARIA SPA PLANNED BY A GROUP OF CREDITOR BANKS LED BY MEDIOBANCA THE FERRUZZI GROUP HAS HANDED OVER OPERATIONAL CONTROL OF ITS BUSINESSES TO THE CREDITOR BANKS AFTER DIVULGING MASSIVE DEBTS EARLIER THIS YEAR 9308030014 930803 CORRECTIONS & AMPLIFICATIONS THE BUSINESS ROUNDTABLE HASN'T ENDORSED A PROPOSAL UNDER WHICH TRADE SANCTIONS COULD BE ORDERED AGAINST A COUNTRY THAT DIDN'T PAY FINES FOR ENVIRONMENTAL OR LABOR INFRACTIONS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT AN ARTICLE YESTERDAY INCORRECTLY STATED THE BUSINESS ROUNDTABLE HAD PROPOSED SUCH A SYSTEM SUMMIT TECHNOLOGY INC REPORTED ITS RESULTS FOR THE SECOND QUARTER AND FIRST HALF ENDED JUNE 30 A TABLE IN YESTERDAY'S DIGEST OF EARNINGS REPORTS INCORRECTLY IDENTIFIED THE COMPANY AS SEAMAN FURNITURE CO SEAMAN FURNITURE HASN'T ANNOUNCED ITS OPERATING RESULTS A CORRECT TABLE APPEARS IN THIS ISSUE BERTUCCI'S INC NAMED JOHN SMITH CHIEF OPERATING OFFICER NOT CHIEF FINANCIAL OFFICER AS WAS INCORRECTLY STATED IN AN ARTICLE YESTERDAY 9308030013 930803 US QUESTIONS AMAX AND CYPRUS MINERALS OVER PLANS TO MERGE A WALL STREET JOURNAL NEWS ROUNDUP DENVER THE JUSTICE DEPARTMENT PONDERING ANTITRUST IMPLICATIONS OF CYPRUS MINERALS CO'S PLANNED ACQUISITION OF AMAX INC HAS ASKED THE COMPANIES FOR ADDITIONAL INFORMATION ON ONE SECTOR OF THEIR BUSINESSES CYPRUS MINERALS HERE AND AMAX IN NEW YORK SAID JUSTICE DEPARTMENT QUESTIONS APPEARED TO BE CENTERED ON COMBINING THE TWO FIRMS' MOLYBDENUM BUSINESSES THE MERGER WOULD COMBINE THE NATION'S NO 1 AND NO 2 PRODUCERS OF THE METAL USED TO STRENGTHEN STEEL ANALYSTS HAD EARLIER QUESTIONED WHETHER SUCH A MARRIAGE WOULD PASS ANTITRUST MUSTER THE TWO COMPANIES SAID THEY WOULD TRY TO WORK WITH THE JUSTICE DEPARTMENT TO RESOLVE ANY ANTITRUST CONCERNS IN MAY CYPRUS AGREED TO ACQUIRE AMAX FOR BETWEEN 1 BILLION AND 14 BILLION IN STOCK CREATING A MINING POWERHOUSE IN NEW YORK STOCK EXCHANGE LATE TRADING YESTERDAY CYPRUS MINERALS CLOSED AT 27125 A SHARE DOWN 125 CENTS AND AMAX CLOSED AT 25125 UNCHANGED 9308030012 930803 FINANCING BUSINESS PARTECH HOLDINGS CORP PARTECH HOLDINGS CORP COLUMBUS OHIO SAID SHAREHOLDERS EXERCISED CLASS B WARRANTS TO BUY 23 MILLION OF THE COMPANY'S COMMON INCLUDING PROCEEDS FROM THE EXERCISE OF CLASS A WARRANTS THAT BRINGS PARTECH'S TOTAL WARRANT OFFERING TO 35 MILLION PARTECH REGISTERED THE WARRANTS IN SEPTEMBER 1991 PROCEEDS WERE USED TO PAY A SHORTTERM 780000 DEBT THE REST OF THE MONEY WILL HELP TO PAY FOR PARTECH'S PREVIOUSLY ANNOUNCED ACQUISITION OF SEVERAL RADIO STATIONS IN THE SOUTHEAST AND FOR WORKING CAPITAL 9308030011 930803 FED CLEARS NATIONSBANK MERGER WASHINGTON THE FEDERAL RESERVE BOARD APPROVED THE APPLICATION OF NATIONSBANK CORP TO ACQUIRE MNC FINANCIAL INC THE BALTIMORE HOLDING COMPANY THAT OWNS MARYLAND NATIONAL BANK AND AMERICAN SECURITY BANK IN THE DISTRICT OF COLUMBIA FOLLOWING THE ACQUISITION OF MNC'S 17 BILLION OF ASSETS NATIONSBANK IN CHARLOTTE NC WILL HAVE TOTAL ASSETS OF 1346 BILLION AFTER THE ACQUISITION IT WILL REMAIN THE FOURTHLARGEST BANKING COMPANY IN THE US FOLLOWING CITICORP BANKAMERICA CORP AND CHEMICAL BANKING CORP THE FED VOTE WAS 50 WITH TWO MEMBERS ABSENT 9308030010 930803 BUSINESS BRIEF AERO SYSTEMS INC CHAPTER 11 FILING IS MADE AFTER BANKS SEEK PAYMENT AERO SYSTEMS INC MIAMI SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE COMPANY SAID THE FILING WHICH INCLUDED THE COMPANY'S AERO SYSTEMS AVIATION CORP UNIT WAS PROMPTED BY DEMANDS FROM BANKS FOR IMMEDIATE PAYMENT OF ABOUT 75 MILLION IN LOANS IN NOVEMBER AERO THREE OF ITS SUBSIDIARIES AND A FORMER VICE PRESIDENT WERE CONVICTED OF CONSPIRACY AND 11 COUNTS OF TRANSFERRING MILITARY AIRCRAFT PARTS TOTALING 73 MILLION TO IRAN IN MAY THE COMPANY WAS FINED 410000 YESTERDAY AERO SAID THE LITIGATION AND THE DEPRESSED STATE OF THE AIRLINE INDUSTRY HAVE LEFT THE COMPANY IN A WEAKENED CONDITION AERO SAID IT HAS BEEN NO MATCH FOR THE OVERWHELMING POWER OF THE US GOVERNMENT AND THE RESULTING DEMANDS OF THE BANKS AERO SAID THE CHAPTER 11 FILING DOESN'T INCLUDE AND SHOULDN'T AFFECT AERO SYSTEMS PTE THE COMPANY'S UNIT IN SINGAPORE OR AERO SYSTEMS AVIATION PHILIPPINES INC IN MANILA AERO SAID ITS SALES OFFICE IN ENGLAND WHICH CLOSED FRIDAY IS THE ONLY OFFSHORE UNIT EXPECTED TO BE AFFECTED AS PART OF THE FILING 9308030009 930803 LEISURE & ARTS BOOKSHELF BEACHNOVEL ALTERNATIVES BY DAVID SHRIBMAN WE ARE FINALLY IN THE SEASON OF THE BEACH AND OF THE BEACH NOVEL OR THE MOUNTAINS AND THE VACATION NOVEL OR OF A LONG JOURNEY PLANE TRAIN AUTOMOBILE EVEN FERRY AND THE STEAMY NOVEL BUT NOT SO FAST IN SOME CORNERS OF THE WORLD THE MOUNTAIN TOWN IN NEW HAMPSHIRE I REPAIR TO FOR EXAMPLE WHERE THE BOOKSTORES ARE LIVELY AND WELLSTOCKED AND WHERE THE TINY PUBLIC LIBRARY SELLS OFF ITS EXTRAS ON A BRIDGE TABLE ON MAIN STREET THERE REMAINS A STUBBORN CULT OF DISSENTERS ITS FOLLOWERS ARE DEDICATED TO SUMMER NONFICTION SUMMER NONFICTION IS NO OXYMORON NOR IS IT IS A DYING BREED INDEED AS THIS NONFICTION ROUNDUP INDICATES IT IS FRUITFUL AND MULTIPLYING ONE OF THE PLEASANT SURPRISES OF THE SUMMER ALONG WITH THE UNUSUALLY TASTY WHITE MARYLAND SWEET CORN IS RICHARD MOE'S THE LAST FULL MEASURE HENRY HOLT 345 PAGES 2995 THIS IS THE STORY DEFTLY TOLD OF THE FIRST MINNESOTA VOLUNTEERS THE FIRST CIVIL WAR SOLDIERS TO STEP FORWARD AFTER THE OMINOUS FALL OF FORT SUMTER THEY WERE BADLY CLOTHED THEY WERE POORLY EQUIPPED THEY WERE SO INEXPERIENCED THAT THEY LEARNED ABOUT MILITARY DRILLING FROM A BOOK THEY WERE ALSO INFUSED WITH THE EARLY ENTHUSIASM AND OPTIMISM OF THIS DREADFUL WAR ONLY TO LOSE IT IN THE TRENCHES AND AMID THE CARNAGE THEY WITNESSED AND CAUSED MR MOE IS KNOWN AROUND WASHINGTON AS AN INSIDER AND WHAT IS MORE AS A HIGH PRIEST OF CONTEMPORARY POLITICS A LONGTIME ADVISER TO WALTER MONDALE HE IS A WELLKNOWN PRACTITIONER OF THE POLITICAL ARTS BUT LATELY HAVING BEEN ELECTED PRESIDENT OF THE NATIONAL TRUST FOR HISTORIC PRESERVATION HE HAS BECOME A CONFIRMED BELIEVER IN THE LONG VIEW THAT'S EVIDENT IN THIS VOLUME IN WHICH MR MOE ESTABLISHES HIMSELF AS MORE THAN A HISTORY BUFF AND EVEN AS SOMETHING OF A HISTORIAN HE IS ALSO A WRITER HE DESCRIBE THE SCENE AT ANTIETAM CREEK WITH SKILL AND FEELING AND HE BRINGS TO LIFE THE FATEFUL DRUMBEAT OF THE WAR BULL RUN THE PENINSULA CAMPAIGN FREDERICKSBURG CHANCELLORSVILLE GETTYSBURG THE MEN OF THE FIRST MINNESOTA HE SAYS WEREN'T THINKING ABOUT HISTORY AS THE HOLOCAUST THAT WAS GETTYSBURG NEARED ITS END THEY WERE THINKING SIMPLY OF VICTORY AND DEATH OF COFFEE AND SLEEP HE WRITES A MORE PEACEFUL ROUTE TO EXHAUSTION IS TAKEN BY KAREN BERGER AND DANIEL R SMITH TWO EASTERNERS WHO SET OUT ON A WALK AND STOPPED 3200 MILES LATER IT TOOK THEM 233 DAYS DURING WHICH THEY TOOK ABOUT SIX MILLION STEPS AND CLIMBED GIVE OR TAKE A FEW MOUNTAIN PEAKS 300000 FEET THEN THEY WROTE A BOOK ABOUT IT THAT BOOK WHERE THE WATERS DIVIDE HARMONY 324 PAGES 23 IS THE STORY OF THAT WALK ALONG THE CONTINENTAL DIVIDE THE AUTHORS LEARNED QUITE A LOT ON THE TRIP AND NOT ONLY HOW TO READ A MAP USE A COMPASS AND FIGURE OUT THE BEST WAY THROUGH A MOUNTAIN PASS WE LEARNED ABOUT THE BEAUTY OF WIDE OPEN LANDSCAPES AND WE LEARNED HOW RARE THEY ARE BECOMING WE LEARNED THAT ISSUES THAT SEEM CUT AND DRIED FROM FAR AWAY BECOME MUCH LESS SO UP CLOSE WE LEARNED THAT THERE ARE FEW VILLAINS AND FEW HEROES IN THE FIGHT OVER OUR WILD PLACES AND THAT THERE ARE FEW EASY ANSWERS TOO WE LEARNED TO HEAR THE OTHER SIDE OF THE STORY THEIR STORY IS COMPELLING TOO IT IS THE STORY OF COURSE OF THE CONTINENTAL DIVIDE WHICH HAS ITS OWN LORE AND FABLES BUT IT IS ALSO THE STORY OF TWO EXTRAORDINARY PEOPLE WHO TALKED ABOUT GETTING MARRIED BUYING A HOUSEAND MAYBE HIKING THE CONTINENTAL DIVIDE THEY IDENTIFIED 30 RESUPPLY POINTS THEY ASSEMBLED THEIR FREEZEDRIED DINNERS THEY GATHERED THEIR INSTANT SOUP THEY PACKED THEIR GRANOLA THEIR SUNSCREEN AND THEIR INSECT REPELLENT THEY ALSO TOOK ALONG A GOOD SENSE OF OBSERVATION AND MORE IMPORTANT STILL A SENSE OF HUMOR ALSO EXTRA SOCKS THEY'RE NOT THE ONLY ONES IN THE BOOK WORLD WHO AS NEW HAMPSHIRE FOLK MINSTREL TOM RUSH ONCE PUT IT GOT THE URGE FOR GOING THERE'S ALSO MARIANA GOSNELL ONE DAY SHE TOO WENT WANDERING LEAVING FROM SPRING VALLEY NY AND FLYING SOLO TRAVELING FROM ONE SMALL AIRPORT TO ANOTHER ACROSS THE COUNTRY AND BACK IN A 95HORSEPOWER PLANE BUILT WHEN HARRY TRUMAN WAS STILL PRESIDENT HER ODYSSEY IS ZERO THREE BRAVO KNOPF 371 PAGES 25 NAMED FOR THE REGISTRATION NUMBER OF HER PLANE AND IT BEGINS WITH AN UGLY DAY IN NEW YORK AND A GLIMPSE OF THAT RIBBON OF BLUE SHE CALLS THE SKY SHE COULDN'T TAKE HER EYES OFF IT IT HELD ME AS THE BLUE OF AN AIR HOLE MUST HOLD A PERSON TRAPPED UNDER THE ICE WHOSE CONTINUED BREATHING DEPENDS ON REACHING IT HER GEAR WAS A FOLDING SAW A SIGNALLING MIRROR A WATERPROOF MATCHBOX WATERPURIFICATION TABLETS TIEDOWN PEGS VOL DE NUIT COLOGNE AND A HARMONICA SHE WAS ALONE OF COURSE BUT NEVER FOR VERY LONG THIS IS A STORY DEDICATED TO THE PEOPLE SHE ENCOUNTERED AT THE SMALL AIRPORTS IN PLACES SUCH AS OCRACOKE NC NUT TREE CALIF WALL SD AND ATCHISON KAN IT WAS IN ATCHISON ON THE MISSOURI RIVER THAT SHE FOUND AN AIRPORT NAMED FOR AMELIA EARHART THE FIRST WOMAN TO FLY THE ATLANTIC AND THE PACIFIC AND IT WAS IN THE AIR THAT SHE DISCOVERED AS OTHER TRAVELERS THIS SUMMER ARE FINDING THAT IT IS THE JOURNEY AND NOT THE DESTINATION THAT MATTERS MR SHRIBMAN IS THE BOSTON GLOBE'S WASHINGTON BUREAU CHIEF 9308030008 930803 FOREIGN EXCHANGE EUROPE'S STORMY CURRENCY MARKETS TURN CALM BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EUROPE'S TURBULENT CURRENCY MARKETS TURNED SURPRISINGLY CALM IN THE FIRST TRADING DAY UNDER THE NEWLY LOOSENED MONETARY SYSTEM WEAKER EUROPEAN CURRENCIES DANGLED BUT DIDN'T DIVE SEVERAL EUROPEAN STOCK AND BOND MARKETS ROSE SOME STRONGLY LOOKING AHEAD ANALYSTS PREDICT THAT FALLING INTEREST RATES EVENTUALLY WILL LEAD TO SOMEWHAT WEAKER CURRENCIES IN FRANCE DENMARK SPAIN PORTUGAL AND BELGIUM THEY ALSO FORECAST THAT STOCKS AND BONDS WILL RALLY IN MOST OF THOSE COUNTRIES THE DOLLAR RETREATED AS ITS SAFEHAVEN STATUS WANED FOR THE TIME BEING EUROPE'S WIDENED CURRENCY HIGHWAY LEFT STOCK AND BOND INVESTORS HAPPY AND SOME FOREIGNEXCHANGE TRADERS PUZZLED PEOPLE THOUGHT THERE WOULD BE BIG DOWNWARD PRESSURE AGAINST ALL THE WEAK CURRENCIES LIKE 5 TO 8 FOR THE FRENCH FRANC SAID GEHARD SEIFFERTH A TRADER AT COMMERZBANK AG IN FRANKFURT BUT THIS DIDN'T HAPPEN ONE REASON TRADERS SAID WAS BECAUSE NO CENTRAL BANKS EXCEPT PORTUGAL'S LOWERED INTEREST RATES AS MANY HAD EXPECTED ANOTHER WAS THAT MANY TRADERS DECIDED TO LOCK IN PROFITS FROM LAST WEEK'S WILD TRADING WHICH LEFT EUROPE'S WEAKER CURRENCIES BADLY BATTERED NEARLY EVERYBODY SHOULD HAVE HAD THE RIGHT POSITIONS AND NOW WE ARE LUCKY WE'RE TAKING PROFITS SAID GABRIELE OTTO A TRADER AT BANK OF AMERICA IN FRANKFURT A LOT OF PEOPLE I THINK MUST HAVE MADE A LOT OF MONEY OVER THE LAST FEW DAYS AFTER INITIALLY TUMBLING AS MUCH AS 3 AGAINST THE MARK THE FRENCH FRANC BY LATE IN THE DAY WAS DOWN ABOUT 21 FROM WHERE IT WAS BEFORE THE WEEKEND THE DANISH KRONE FELL 26 THE BELGIAN FRANC 16 AND PORTUGAL'S ESCUDO 36 THE SPANISH PESETA ESSENTIALLY WAS UNCHANGED MEANWHILE BOND MARKETS IN FRANCE DENMARK SPAIN ITALY BELGIUM AND SWEDEN ALL RALLIED YIELDS ON FRENCH TWOYEAR GOVERNMENT BONDS TUMBLED TO 546 FROM 596 ON FRIDAY THE MOOD WAS VERY POSITIVE EXPECTATIONS ARE THAT YIELDS WILL GO DOWN AT A VERY RAPID PACE SAID PHILIPPE RAKOTOVAO A BOND TRADER AT BANQUE NATIONALE DE PARIS IN PARIS THAT HE SAID WAS IN SPITE OF COMMENTS BY FRENCH PRIME MINISTER EDOUARD BALLADUR THAT INTIMATED A CAUTIOUS APPROACH TO LOWERING FRENCH INTEREST RATES TAKING THEIR CUE FROM THE BONDMARKET RALLIES FRENCH STOCKS SOARED 21 THEY ARE UP 7 SINCE WEDNESDAY DANISH STOCKS 41 ITALIAN 17 AND BELGIAN 14 GERMANY'S STOCK MARKET WAS UP 07 AND BRITAIN'S 05 THERE'S GOOD REASON TO BELIEVE THAT INTEREST RATES WILL BE HEADED LOWER IN FRANCE SAID BERT JANSEN A EUROPEAN EQUITY STRATEGIST AT BANQUE PARIBAS CAPITAL MARKETS LTD IN LONDON BUT HE WARNED THEY MIGHT NOT GO DOWN AS SHARPLY AND AS QUICKLY AS MANY INVESTORS ANTICIPATE COMMERZBANK'S MR SEIFFERTH EXPECTS THE NEXT FEW DAYS TO BE RELATIVELY CALM FOR EUROPE'S EXCHANGE RATE MECHANISM OR ERM A JOINT FLOAT OF NINE EUROPEAN CURRENCIES THAT FLUCTUATE WITHIN PROSCRIBED RANGES AGAINST ONE ANOTHER AS OF YESTERDAY THOSE BANDS ARE A LOT WIDER THAN THEY WERE ON FRIDAY THAT'S THE DIRECT RESULT OF SPECULATORS STAGING A DEVASTATING ASSAULT ON THE ERM FORCING GERMANY'S CENTRAL BANK TO CONCEDE THAT IT SPENT 60 BILLION MARKS 35 BILLION TRYING TO PROP UP THE FRENCH FRANC ALONE IN A MARATHON 10HOUR MEETING ON SUNDAY EUROPEAN COMMUNITY FINANCE MINISTERS AND CENTRAL BANKERS DECIDED TO WIDEN THE BANDS IN WHICH ERM CURRENCIES CAN FLUCTUATE TO 15 UP OR DOWN AGAINST A CENTRAL RATE THE OLD RULES MANDATED MUCH NARROWER 225 DEVIATIONS FOR ALL CURRENCIES EXCEPT SPAIN'S AND PORTUGAL'S WHOSE BANDS WERE PLUS OR MINUS 6 ONLY THE DUTCH GUILDER HAS ITS OLD 225 FLUCTUATION BAND RELATIVE TO THE MARK BUT LIKE OTHERS COMMERZBANK'S MR SEIFFERTH WARNED THAT THE TRANQUILITY MIGHT NOT LAST BECAUSE PEOPLE EXPECT LOWER INTEREST RATES IN THE FUTURE IT MAY NOT HAPPEN IN THE NEXT FEW DAYS BUT WILL COME IN THE NEXT FEW WEEKS KERMIT L SCHOENHOLTZ CHIEF ECONOMIST FOR SALOMON BROTHERS INTERNATIONAL IN LONDON PREDICTED THE FRENCH FRANC DANISH KRONE AND SPANISH PESETA WOULD TUMBLE 5 TO 10 DURING THE NEXT FEW MONTHS FROM NEAR WHERE THEY STOOD FRIDAY SHORTTERM RATES SHOULD FALL SHARPLY LOWER THROUGHOUT CONTINENTAL EUROPE HE SAID POLICYMAKERS IN WIDEBAND CURRENCY COUNTRIES MAY DELAY CUTTING INTEREST RATES INITIALLY BUT PERHAPS OVER SEVERAL MONTHS RATES IN THOSE COUNTRIES WILL FALL SHARPLY HE FORECAST SHORTTERM INTEREST IN FRANCE AND DENMARK WOULD FALL TO BELOW 5 BY EARLY NEXT YEAR FROM RESPECTIVELY 77 AND 135 NOW INDEED WITH THE NEWLY WIDENED ERM BANDS INTERESTRATE REDUCTIONS IN CONTINENTAL EUROPE CAN BE FRONTLOADED IN THE COUNTRIES THAT NOW HAVE MORE ROOM TO FLOAT SAID NORBERT WALTHER CHIEF ECONOMIST AT DEUTSCHE BANK AG IN FRANKFURT HE SAID THE BIG QUESTION IS WHETHER THE NEW WIDE ERM BANDS WILL PROMPT GERMANY WHICH HAS BEEN RELUCTANT TO QUICKLY LOWER RATES BECAUSE OF DOMESTIC INFLATION FEARS TO CUT RATES EARLIER THAN EXPECTED NOT IN THE NEXT FOUR WEEKS MR WALTHER PREDICTED BUT HE ADDED THAT GERMANY'S DEEPENING RECESSION AND THE GROWING UNCOMPETITIVENESS OF ITS COMPANIES WILL PROMPT THE BUNDESBANK TO CUT RATES SOMEWHAT EARLIER AND DEEPER THAN IT MIGHT HAVE WANTED TO THE FASTER AND MORE DEEPLY GERMANY CUTS INTEREST RATES THE MORE QUICKLY THE REST OF EUROPE CAN GET RECESSIONPLAGUED ECONOMIES MOVING AGAIN MEANWHILE THE DOLLAR TUMBLED AGAINST THE MARK AND STERLING AND HIT ANOTHER POSTWORLD WAR II LOW AGAINST THE YEN 10414 YEN IN INTRADAY TRADING ITS PREVIOUS LOW WAS 10427 SET ON FRIDAY TRADERS SAID THE DOLLAR SUFFERED FROM A LOSS OF ITS TEMPORARYHAVEN STATUS NOW THAT TENSION IN THE ERM HAD EASED THEY ALSO SAID THE US CURRENCY GOT CAUGHT IN SOCALLED CROSSRATE TRADING THAT SAW TRADERS BUYING BACK MARKS AND SELLING YEN BECAUSE THE DOLLAR OFTEN SERVES AS AN INTERMEDIARY IN SUCH TRANSACTIONS THESE TRADES GENERALLY WEAKEN THE US CURRENCY AGAINST THE MARK IN LATE NEW YORK TRADING THE DOLLAR FELL TO 17093 MARKS AND 10441 YEN FROM 17425 MARKS AND 10480 YEN ON FRIDAY THE BRITISH POUND ROSE STRONGLY TO 15020 FROM 14828 LATE FRIDAY ABOUT NOON ON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10430 YEN AND AT 17107 MARKS IN THE SHORTTERM TRADERS EXPECT THE US CURRENCY TO REMAIN SUBDUED AS LONG AS THERE ISN'T MUCH NEW PRESSURE ON ERM CURRENCIES THE DOLLAR WILL COME DOWN A LITTLE TO 170 MARKS OR SO SAID COMMERZBANK'S MR SEIFFERTH LONGERTERM HOWEVER TRADERS AND ANALYSTS ARE MORE OPTIMISTIC THAT STABLE US INTEREST RATES COMBINED WITH FALLING GERMAN RATES WILL PROPEL THE DOLLAR HIGHER BANK OF AMERICA'S MS OTTO THINKS IT COULD RECOVER TO 175 MARKS NEXT WEEK ECONOMISTS AT DEUTSCHE BANK AG SEE THE DOLLAR TRADING AT 180 MARKS OR ABOUT 5 HIGHER IN FOUR TO FIVE MONTHS AND HOLDING AROUND THAT LEVEL FOR ANOTHER SIX MONTHS 9308030006 930803 WHO'S NEWS BARNETT BANKS INC BARNETT BANKS INC JACKSONVILLE FLA KATHLEEN WEISE 45 YEARS OLD WAS APPOINTED DIRECTOR OF COMPLIANCE AT THIS BANKING FIRM MS WEISE WHO WAS DIRECTOR OF COMMUNITY DEVELOPMENT SUCCEEDS CHRISTINA TOMCZAK 46 WHO RESIGNED LAST YEAR TO ATTEND DIVINITY SCHOOL 9308030004 930803 INTERNATIONAL SINGAPORE IMPOSES CIRCULATION CURBS ON THE ECONOMIST BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE FOR THE FIRST TIME IN FIVE YEARS THE SINGAPORE GOVERNMENT SLAPPED A CIRCULATION RESTRICTION ON A MAJOR FOREIGN PUBLICATION THE GOVERNMENT SAID IT CAPPED THE ECONOMIST'S CIRCULATION HERE AT ITS CURRENT LEVEL OF 7500 COPIES EFFECTIVE IMMEDIATELY BECAUSE THE MAGAZINE DIDN'T PUBLISH A LETTER FROM THE GOVERNMENT THE GOVERNMENT SAID IT WILL REDUCE THIS CIRCULATION PROGRESSIVELY BEGINNING WITH THE ISSUE DATED AUG 1420 UNLESS THE ECONOMIST PUBLISHES THE LETTER THE LETTER IN QUESTION IS A GOVERNMENT REPLY TO A LETTER FROM SINGAPORE OPPOSITION LEADER JB JEYARETNAM THAT THE ECONOMIST PUBLISHED IN JUNE IN A STATEMENT THE GOVERNMENT SAID IT ALSO REVOKED THE ECONOMIST'S EXEMPTION FROM A SINGAPORE LAW THAT REQUIRES FOREIGN PUBLICATIONS TO APPLY FOR A PERMIT TO CIRCULATE AND POST A BOND OF 200000 SINGAPORE DOLLARS US124000 WITH THE GOVERNMENT THE GOVERNMENT HOPES THAT THE ECONOMIST WILL PUBLISH THE GOVERNMENT'S LETTER BY ITS NEXT ISSUE AND MAKE IT UNNECESSARY FOR THE GOVERNMENT TO REDUCE ITS CIRCULATION IN SINGAPORE THE SINGAPORE GOVERNMENT SAID THIS ISN'T THE FIRST TIME SINGAPORE HAS TANGLED WITH THE FOREIGN PRESS BUT IT IS THE FIRST SUCH ACTION SINCE A RASH OF SUCH INCIDENTS IN 1986 AND 1987 AND REVERSES A RECENT TREND THAT HAS SEEN THE GOVERNMENT RELAX RESTRICTIONS ON SOME FOREIGN PUBLICATIONS INCLUDING THE ASIAN WALL STREET JOURNAL HOWEVER THE GOVERNMENT SAID ITS DECISION TO RESTRICT THE CIRCULATION OF THE ECONOMIST UNDER SINGAPORE'S NEWSPAPER AND PRINTING PRESSES ACT DOESN'T REPRESENT A SHIFT IN POLICY OUR STAND IS A CONSISTENT ONE WE HAVE ALWAYS MAINTAINED THAT FOREIGN PUBLICATIONS CAN PUBLISH WHAT THEY WANT ABOUT SINGAPORE AND CIRCULATE TO SINGAPOREANS BUT THEY MUST GIVE US THE RIGHT OF UNEDITED REPLY THIS IS A MATTER OF PRINCIPLE THE GOVERNMENT SAID IN A WRITTEN RESPONSE TO QUESTIONS BILL EMMOTT EDITOR OF THE ECONOMIST SAID I DON'T RULE OUT PUBLISHING THE LETTER BUT I WOULD NOT WANT TO COMMIT MYSELF AT THIS STAGE THE ECONOMIST IS 50OWNED BY PEARSON PLC WHILE THE ARTS AND THE MEDIA REMAIN TIGHTLY CONTROLLED IN SINGAPORE BY WESTERN STANDARDS THE RECENT TREND HAS BEEN TO RELAX RULES FOR EXAMPLE MOVIE CENSORSHIP GUIDELINES HAVE BEEN LOOSENED THE PROBLEM INVOLVING THE ECONOMIST AROSE WHEN IT PUBLISHED A STORY IN JUNE ABOUT THE ALLEGED LEAK LAST YEAR OF A PRELIMINARY GOVERNMENT ESTIMATE OF ECONOMIC GROWTH WHICH APPEARED IN BUSINESS TIMES A SINGAPORE DAILY THE ECONOMIST'S ARTICLE ALSO TOUCHED ON A FEW HIGHPROFILE INCIDENTS INVOLVING OPPOSITION POLITICIANS THE GOVERNMENT SENT A LETTER TO THE ECONOMIST ALMOST IMMEDIATELY AFTER THE ARTICLE APPEARED THE MAGAZINE PUBLISHED AN EDITED VERSION OF THE LETTER IN ITS JULY 1016 ISSUE THE MAGAZINE ALSO PUBLISHED A RELATED LETTER IN THAT ISSUE FROM JB JEYARETNAM LEADER OF THE OPPOSITION WORKERS' PARTY IN A SERIES OF LETTERS THE GOVERNMENT THEN DEMANDED THAT THE ECONOMIST PUBLISH A SENTENCE THAT WAS OMITTED FROM THE PRINTED LETTER EVENTUALLY THE ECONOMIST AGREED TO PUBLISH A LETTER CONTAINING THIS SENTENCE BUT THE MAGAZINE DIDN'T PUBLISH A SEPARATE LETTER FROM THE GOVERNMENT RESPONDING TO MR JEYARETNAM'S LETTER SINGAPORE WAS SHARPLY CRITICIZED BY THE US GOVERNMENT AMONG OTHERS AFTER IT RESTRICTED TIME ASIAWEEK THE ASIAN WALL STREET JOURNAL AND THE FAR EASTERN ECONOMIC REVIEW IN 1986 AND 1987 TIME IS NO LONGER SUBJECT TO ANY RESTRICTIONS TIME AND ASIAWEEK ARE OWNED BY TIME WARNER INC DOW JONES & CO IS MAJORITY OWNER OF THE ASIAN JOURNAL AND SOLE OWNER OF THE REVIEW 9308030003 930803 THE TAX AND BUDGET DEBATE WHITE HOUSE AND CONGRESS CLOSE IN ON DEFICIT PACKAGE CHANCES OF PASSAGE UNCLEAR AS ONETIME SUPPORTERS EXPRESS RESERVATIONS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATIC LEADERS IN CONGRESS AND THE CLINTON ADMINISTRATION CLOSED IN ON A DEFICITREDUCTION COMPROMISE BUT IT'S NOT CLEAR THEY HAVE THE VOTES TO PASS IT EVEN AS THEY MADE CONCESSIONS TO WIN WAVERERS' VOTES ONCESUPPORTIVE LAWMAKERS THREATENED TO BOLT OVER OTHER ISSUES THE LEAD NEGOTIATORS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN AND CHAIRMAN DAN ROSTENKOWSKI OF THE HOUSE WAYS AND MEANS COMMITTEE SAID THE MAJOR TAX AND MEDICARE SPENDING PORTIONS OF THE PACKAGE HAVE BEEN DECIDED AND ONLY SOME MINOR IRRITATIONS REMAIN AS REP ROSTENKOWSKI PUT IT CONGRESSIONAL LEADERS SAID THE PACKAGE WOULD CUT THE PROJECTED DEFICIT BY 496 BILLION OVER FIVE YEARS JUST UNDER PRESIDENT CLINTON'S GOAL OF 500 BILLION THEY SAID THAT CONSISTS OF A NET TAX INCREASE OF 241 BILLION AND SPENDING REDUCTIONS OF 255 BILLION FOR THE ROUGHLY 1TO1 RATIO OF SPENDING CUTS TO TAX INCREASES THAT CONSERVATIVE DEMOCRATS HAVE DEMANDED BUT THE TOTAL FOR SPENDING CUTS INCLUDES SAVINGS FROM PAST LEGISLATION AND LOWER INTEREST PAYMENTS FROM CUTTING THE FEDERAL DEBT MAJORITY LEADER RICHARD GEPHARDT D MO SAID THE HOUSE WOULD VOTE ON THE COMPROMISE VERSION OF MR CLINTON'S PROGRAM ON THURSDAY AND THE SENATE IS EXPECTED TO FOLLOW FRIDAY BUT AN IRONCLAD DEAL CONTINUED TO ELUDE THE ADMINISTRATION AND CONGRESSIONAL LEADERS WHO HAD HOPED TO ANNOUNCE THE COMPROMISE LATE LAST WEEK MEMBERS WANT THIS AND MEMBERS WANT THAT REP ROSTENKOWSKI SAID AS HE LEFT A CLOSEDDOOR STRATEGY SESSION YESTERDAY AFTERNOON MR CLINTON WHO PLANS A TELEVISED ADDRESS TONIGHT LIKEWISE SEEMED IMPATIENT WITH THE WRANGLING DO WE WANT TO HANG AROUND HERE IN WASHINGTON FOR 60 OR 90 MORE DAYS AND DEBATE THIS WHEN WE COULD BE DEALING WITH HEALTH CARE WITH WELFARE REFORM WITH A CRIME BILL WITH THE THINGS THAT WILL GROW THIS ECONOMY HE ASKED IN AN INTERVIEW WITH NEWSPAPER EDITORIAL WRITERS THE TIME HAS COME TO PASS THIS BUDGET AND GET ON WITH IT THE EFFECT OF ROSS PEROT'S ATTACKS ON THE EMERGING PLAN REMAINED ONE OF THE GREAT UNCERTAINTIES WHITE HOUSE OFFICIALS GREW MORE CONFIDENT YESTERDAY THAT MR PEROT WASN'T SWAYING MANY LAWMAKERS WITH HIS CHARGES THAT THE PLAN IS INADEQUATE LARGELY BECAUSE OF A ROUND OF NEGATIVE TELEVISION AND NEWSPAPER REPORTS IN RECENT DAYS AND POLLS INDICATING MORE PUBLIC CYNICISM ABOUT THE TEXAS BILLIONAIRE MR PEROT CONTINUES TO DUCK INQUIRIES ABOUT HOW HIS OWN ECONOMIC PLAN WOULD ACHIEVE 141 BILLION IN SAVINGS THROUGH UNSPECIFIED COST CONTAINMENT IN THE FEDERAL MEDICARE AND MEDICAID PROGRAMS THE FIGURE REPRESENTS MORE THAN HALF THE 268 BILLION IN ENTITLEMENTS REFORM SAVINGS TOUTED IN HIS BOOK NOT FOR SALE AT ANY PRICE WHEN ASKED SUNDAY ON NBC'S MEET THE PRESS TO OUTLINE THE MEDICARE AND MEDICAID SAVINGS MR PEROT SAID HE DIDN'T HAVE THE INFORMATION WITH HIM ADDING IF YOU WOULD LIKE IT LATER I WILL GIVE IT TO YOU LATER I HAVE IT ALL WRITTEN DOWN BUT WHEN MR PEROT'S SPOKESWOMAN WAS CONTACTED YESTERDAY SHE SAID MR PEROT HAD NO PLANS TO RELEASE THOSE DATA THE FOCUS AT THE WHITE HOUSE AND ON CAPITOL HILL WAS ON CONVERTING TWO OF THE SIX DEMOCRATIC SENATORS WHO OPPOSED THE SENATE VERSION IN JUNE DENNIS DECONCINI OF ARIZONA AND RICHARD BRYAN OF NEVADA SEN MOYNIHAN SAID HE WAS COUNTING ON SEN DECONCINI'S VOTE AFTER THE NEGOTIATORS AGREED TO LIMIT THE NUMBER OF UPPERINCOME INDIVIDUALS WHO WOULD PAY TAXES ON MORE OF THEIR SOCIAL SECURITY BENEFITS TO COURT SEN BRYAN THE NEGOTIATORS INCLUDED A TAX CREDIT FOR THE RESTAURANT INDUSTRY THEY HAD CONSIDERED EASING MR CLINTON'S PROPOSAL TO LIMIT BUSINESS DEDUCTIONS FOR MEALS AND ENTERTAINMENT TO 50 OF COSTS INSTEAD OF 80 A PROVISION THAT COULD HURT THE CONVENTION INDUSTRY IN LAS VEGAS BUT THAT WOULD HAVE BEEN TOO COSTLY SO THE NEGOTIATORS ADDED A CREDIT FOR RESTAURATEURS BASED ON THE PAYROLL TAXES THEY PAY ON THEIR EMPLOYEES' TIP INCOME NEGOTIATORS ALSO EXTENDED A TAX CREDIT FOR BUSINESSES' RESEARCH COSTS BY SIX MONTHS THROUGH MID1995 TO HOLD THE SUPPORT OF SEN DIANNE FEINSTEIN OF CALIFORNIA THEY PREVIOUSLY INCLUDED OTHER BUSINESS TAX BREAKS TO SATISFY HER AND SEN JOSEPH LIEBERMAN OF CONNECTICUT INCLUDING ONE CUTTING CAPITALGAINS TAXES FOR INVESTORS IN CERTAIN NEW SMALLER BUSINESSES THE TWO SENATORS ALONG WITH SENS BRYAN AND DECONCINI FACE REELECTION RACES NEXT YEAR IT'S CRITICAL FOR THE DEMOCRATS TO PICK UP THE VOTE OF A PAST OPPONENT SINCE SEN DAVID BOREN OF OKLAHOMA WHO VOTED FOR THE ORIGINAL BILL SAID HE WOULD OPPOSE THE FINAL COMPROMISE BOTH HOUSES NARROWLY PASSED THEIR BILLS BUT THE SENATE NEEDED VICE PRESIDENT AL GORE'S TIEBREAKING VOTE THAT IN EFFECT HAS GIVEN EVERY DEMOCRATIC SENATOR A VETO AND THE BARGAINERS HAVE STRUGGLED TO ADDRESS THEIR COMPLAINTS SENATE MAJORITY LEADER GEORGE MITCHELL SAID YESTERDAY THAT HE HAD THE VOTES TO PASS THE COMPROMISE BILL WE'RE GOING TO PASS THIS BILL ON FRIDAY HE SAID BUT OTHER LAWMAKERS SAID MAJORITY SUPPORT STILL WAS LACKING AMONG THEM WAS SEN LIEBERMAN A PAST SUPPORTER WHO HAS BEGUN EXPRESSING SECOND THOUGHTS THEY DON'T HAVE A COMMITMENT FROM ME HE SAID HE WANTS MORE THAN THE NINE EMPOWERMENT ZONES DEPRESSED AREAS THAT RECEIVE TAX BREAKS AND SOCIAL SPENDING TO ENTICE INVESTORS PROVIDED FOR IN THE BILL SO THAT HARDHIT CONNECTICUT CITIES COULD BENEFIT DEMOCRATIC LEADERS ALSO ARE WORRIED THAT SEN BOB KERREY OF NEBRASKA IS LEANING TOWARD THE OPPOSITION IN THE HOUSE MEANWHILE RESTIVE LIBERALS WERE COMFORTED BY THE FINAL TERMS OF THE BILL'S SPENDING INITIATIVES FOR THE POOR AND BY AN AGREEMENT TO CUT PROJECTED SPENDING FOR MEDICARE BY NO MORE THAN 56 BILLION IN THE NEXT FIVE YEARS I SEE NO REASON WHY A LIBERAL DEMOCRAT SHOULD VOTE AGAINST THIS PROPOSAL SAID REP HENRY WAXMAN D CALIF A LEAD NEGOTIATOR FOR HEALTHRELATED PROVISIONS BUT SATISFYING THE LIBERALS THREATENED TO CUT SUPPORT AMONG CONSERVATIVE DEMOCRATS A POTENTIALLY MAJOR PROBLEM DEVELOPED AS WORD SPREAD THAT REP CHARLES STENHOLM OF TEXAS A LEADER AMONG THE SEVERAL DOZEN CONSERVATIVE DEMOCRATS IN THE HOUSE IS EXPECTED TO SWITCH AND OPPOSE THE FINAL BILL MR STENHOLM WOULDN'T STATE HIS INTENTIONS BUT HE OPPOSES THE 43CENTAGALLON INCREASE IN FUEL TAXES DEMOCRATIC LEADERS HOPED HE WOULD DISSENT QUIETLY WITHOUT RALLYING OTHER CONSERVATIVES WHILE DEMOCRATIC CONGRESSIONAL LEADERS TOUTED THE BILL'S SAVINGS HOUSE SPEAKER THOMAS FOLEY D WASH YESTERDAY CALLED IT THE LARGEST DEFICITREDUCTION PROGRAM IN HISTORY THE NEGOTIATORS CONTINUED TO MAKE ROOM FOR COSTLY BUSINESS BREAKS AND SOCIAL INITIATIVES ON THE PROVISIONS IMPORTANT TO LIBERALS THE NEGOTIATORS ENDED UP CLOSER TO THE MORE GENEROUS HOUSEPASSED BILL THEY INCLUDED 35 BILLION IN TAX BREAKS AND SOCIAL SPENDING FOR THE EMPOWERMENT ZONES 1 BILLION FOR PROGRAMS AIMED AT HELPING TROUBLED FAMILIES NEARLY 600 MILLION FOR CHILDHOOD IMMUNIZATIONS AND 25 BILLION TO EXPAND THE FOOD STAMP PROGRAM ALL OVER FIVE YEARS ALSO THE COMPROMISE WOULD EXPAND A TAX CREDIT FOR THE WORKING POOR AT A COST OF NEARLY 21 BILLION LESS THAN THE HOUSE AND MR CLINTON WANTED BUT SLIGHTLY MORE THAN THE SENATE VOTED FOR THE FINAL DAYS' DELIBERATIONS WERE COMPLICATED BY DEMOCRATIC LEADERS' DECISION LAST WEEK TO INCLUDE THE 43CENT FUEL TAX INCREASE WHICH IS A SMALLER ENERGY TAX THAN MR CLINTON WANTED THAT DECISION LIMITED THE REVENUE AVAILABLE FOR OTHER BUSINESS TAX BREAKS AND PROGRAMS FOR THE POOR BECAUSE THE FUEL TAX INCREASE WOULD RAISE ONLY ABOUT 22 BILLION OVER FIVE YEARS AS MUCH AS MR CLINTON'S REJECTED BROADBASED ENERGY TAX WOULD HAVE RAISED IN A YEAR ONCE FULLY IN PLACE CONSEQUENTLY THE BARGAINERS HAD TO SCALE BACK A NUMBER OF PROVISIONS TO COME CLOSE TO THEIR 500 BILLION DEFICITREDUCTION TARGET THEY AGREED TO MAKE MR CLINTON'S PROPOSED INCOMETAX INCREASES FOR UPPERINCOME AMERICANS FULLY APPLICABLE THIS YEAR INSTEAD OF PHASING THEM IN AT SLIGHTLY LOWER RATES SOME LAWMAKERS BALKED AT MAKING THE INCREASES RETROACTIVE TO THE BEGINNING OF THIS YEAR AND NEGOTIATORS CONSIDERED PRORATING THE FIRST YEAR'S TAX INCREASES FOR INDIVIDUALS TO JULY THEN MARCH AND IN THE FINAL DAYS TO FEB 17 THE DATE MR CLINTON ANNOUNCED HIS PLAN TO THE NATION ALSO THEY GAVE UP THE EFFORT TO EASE THE PROVISION LIMITING BUSINESSES' ENTERTAINMENT DEDUCTIONS AND A PROPOSED DEDUCTION FOR SMALL BUSINESSES' EQUIPMENT PURCHASES DURING THE YEAR WAS RAISED TO 17500 FROM 10000 A SMALLER INCREASE THAN MR CLINTON OR EITHER HOUSE PROPOSED THEY ALSO DECIDED THAT AN EXEMPTION FOR COMMERCIAL AVIATION FROM THE FUEL TAX INCREASE SHOULD BE LIMITED TO TWO YEARS RATHER THAN BEING MADE PERMANENT MOST OF THE TAX INCREASES WOULD HIT HIGHINCOME INDIVIDUALS AND CORPORATIONS BUT BUSINESSES WOULD GET A NUMBER OF BREAKS THESE INCLUDE THE INCREASED WRITEOFFS FOR SMALL BUSINESSES' INVESTMENTS NEW BREAKS FOR THE REAL ESTATE INDUSTRY A NEW WRITEOFF FOR SOCALLED INTANGIBLE ASSETS ACQUIRED IN BUSINESS TAKEOVERS RELIEF FOR HEAVY MANUFACTURERS AND OTHER CORPORATIONS THAT PAY THE ALTERNATIVE MINIMUM TAX AND THE CAPITALGAINS TAX BREAK FOR NEW INVESTMENTS HELD FOR FIVE YEARS IN CERTAIN SMALL BUSINESSES IN ADDITION TO RAISING THE CORPORATE TAX RATE TO 35 FROM 34 THE BILL WOULD SQUEEZE TAXES FROM OTHER BUSINESS SOURCES IT WOULD INCREASE TAX REVENUES FROM MULTINATIONAL COMPANIES' FOREIGN INCOME FROM COMPANIES WITH OPERATIONS IN PUERTO RICO AND FROM FOREIGN COMPANIES WITH OPERATIONS IN THE US IT WOULD CURB DEDUCTIONS FOR CLUB DUES SPOUSE AND DEPENDENTS' TRAVEL MOVING EXPENSES EXECUTIVE COMPENSATION IN EXCESS OF 1 MILLION AND LOBBYING EXPENSES OTHER PROVISIONS OF THE BILL WOULD PERMANENTLY EXTEND SOME TEMPORARY TAX LAWS PROVIDING FAVORABLE TAX TREATMENT FOR INDIVIDUALS' DONATIONS OF APPRECIATED PROPERTY TO CHARITIES AND INCENTIVES FOR ISSUING BONDS FOR SMALL FACTORIES FARMS AND AFFORDABLE MORTGAGES TEMPORARILY EXTEND THROUGH 1994 BUSINESS TAX BREAKS FOR HIRING DISADVANTAGED PEOPLE A PROVISION MUCH SOUGHT BY RETAIL CHAINS AND FASTFOOD RESTAURANTS AND PAYING EMPLOYEES' EDUCATION COSTS ALSO AN EXPIRED LAW ALLOWING SELFEMPLOYED PEOPLE TO DEDUCT 25 OF THEIR HEALTHINSURANCE COSTS WOULD BE EXTENDED THROUGH THIS YEAR THOUGH MR CLINTON AND CONGRESS WILL WORK TO RAISE THAT TO 100 AS PART OF A HEALTHCARE OVERHAUL REPEAL A THREEYEAROLD 10 LUXURY TAX ON YACHTS PRIVATE AIRCRAFT EXPENSIVE JEWELRY AND FURS INCLUDING THOSE PURCHASED ALREADY THIS YEAR THE TAX STILL WOULD APPLY TO LUXURY AUTOS COSTING 30000 OR MORE BUT THAT PRICE THRESHOLD WOULD RISE STEADILY SO THAT THE LEVY HITS MOSTLY FOREIGN MODELS RAISE TAXES ON SECURITIES FIRMS BY 38 BILLION OVER THE NEXT FIVE YEARS BY REQUIRING THEM TO ASSESS THEIR INVENTORIES AT MARKET VALUE INSTEAD OF THEIR ORIGINAL BOOK VALUE STARTING NEXT YEAR PROHIBIT BUYERS OF FAILED THRIFTS FROM DEDUCTING LOSSES FOR WHICH THE GOVERNMENT ALREADY COMPENSATED THEM EFFECTIVE MARCH 4 1991 THE DATE OF A TREASURY DEPARTMENT WARNING ABOUT THE ISSUE EXPEDITE AND SIMPLIFY THE QUARTERLY ESTIMATED TAX PAYMENTS FOR INDIVIDUALS AND CORPORATIONS BEGINNING IN 1994 REPEAL THE SOCALLED STOCKFORDEBT EXCEPTION THAT BENEFITS COMPANIES FACING BANKRUPTCY FIX THE TOP ESTATE AND GIFT TAX RATES AT 53 AND 55 INSTEAD OF LETTING THEM DROP TO 50 AS THEY WERE SUPPOSED TO THIS YEAR LIMIT THE TAX CREDIT FOR FOREIGN INCOME FROM OIL GAS AND SHIPPING BOOST PENALTIES FOR MULTINATIONAL COMPANIES THAT MANIPULATE PRICES OF THEIR US AND FOREIGN ASSETS TO EVADE TAXES JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9308030002 930803 MARKETING & MEDIA ADVERTISING CBS SHOPS FOR IDEAS TO REWORK IMAGE OF THE RATHERCHUNG DUO BY KEVIN GOLDMAN DESPITE ALL THE BALLYHOO OF TWO MONTHS AGO WHEN CONNIE CHUNG JOINED DAN RATHER AS COANCHOR FOR CBS EVENING NEWS THE TAG TEAM HAS WRESTLED WITH THIRDPLACE RATINGS FOR THE PAST THREE WEEKS RECENTLY CBS NEWS TURNED TO MADISON AVENUE TO CRAFT A NEW IMAGE FOR ITS NIGHTLYNEWS DUO CBS NEWS HAS BEGUN SOLICITING IDEAS FROM SEVERAL ADVERTISING AGENCIES ON COMING UP WITH A NEW CAMPAIGN TO POSITION THE RATHERCHUNG BROADCAST KOREY KAY & PARTNERS A MIDSIZED NEW YORK SHOP WITH APPROXIMATELY 60 EMPLOYEES AND BILLINGS LAST YEAR OF 625 MILLION PAID A VISIT TO CBS LAST MONTH NOW THE SMALL AGENCY SAYS IT IS RETURNING TO THE CBS BROADCAST CENTER THE HEADQUARTERS OF CBS NEWS FOR MORE BRAINSTORMING SHORTLY KOREY KAY AND CBS HAVE WORKED TOGETHER BEFORE IN THE EARLY 1980S KOREY KAY WAS THE AD AGENCY FOR THE CBSOWNED TELEVISION STATION IN NEW YORK THE SHOP BACK THEN HANDLED WCBS'S NEWSCAST CAMPAIGN IF IT CONCERNS YOU IT CONCERNS US A CBS NEWS OFFICIAL SAYS THE CONNECTION IS A COINCIDENCE ONE EXECUTIVE SAID CBS NEWS WANTED TO HEAR IDEAS FROM OUTSIDE AGENCIES ON HOW TO ATTRACT AN AUDIENCE AND HOLD ON TO IT IT'S A VERY INTERESTING POSITIONING CHALLENGE SAYS ONE AD OFFICIAL WHO MET WITH CBS NEWS EXECUTIVES CBS HAS THE ONLY DUAL ANCHOR TEAM SO WE HAVE TO COME UP WITH A PROMISE WE WANT TO DELIVER TO VIEWERS AND MAKE SURE WE CAN DELIVER ON THAT PROMISE CBS NEWS EXECUTIVES INSIST THE FLIRTATION WITH MADISON AVENUE ISN'T RELATED TO THE RATHERCHUNG RATINGS TROUBLE AND THAT THEY HAD PLANNED TO EXPLORE ADVERTISING IDEAS EVEN BEFORE PAIRING MS CHUNG WITH MR RATHER THE HIRING OF MS CHUNG MARKED THE FIRST MAJOR CHANGE ON THE CBS EVENING NEWS SINCE MARCH 1981 WHEN MR RATHER SUCCEEDED WALTER CRONKITE ON AVERAGE WHEN MR RATHER WAS SOLO ANCHOR THE NEWSCAST WAS IN SECOND PLACE GEORGE F SCHWEITZER A CBS SENIOR VICE PRESIDENT SAYS CBS NEWS ISN'T LOOKING FOR A WHOLESALE OVERHAUL OF ITS IMAGE WE'VE HAD SOME AGENCIES IN HE CONCEDES WE'RE LOOKING AT DIFFERENT APPROACHES ABOUT WHAT WE CAN DO ONE NETWORK EXECUTIVE ADDS WE HAVEN'T SEEN ANYTHING THAT SETS THE WORLD ON FIRE CBS NEWS NEEDS TO INCREASE ITS VIEWERSHIP FOR ITS FLAGSHIP NEWSCAST IN THE PAST THREE WEEKS CBS EVENING NEWS FINISHED IN THIRD PLACE ALBEIT IN A TIGHT RACE ACCORDING TO AC NIELSEN CO THE TREND IS SOMEWHAT TROUBLING FOR CBS NEWS IN THE FOUR WEEKS ENDED JULY 25 CBS'S RATINGS ARE STAGNANT COMPARED WITH A YEAR AGO EVEN THOUGH RATINGS FOR ITS RIVALS CLIMBED CBS EVENING NEWS WAS WATCHED BY 79 OF US HOMES WITH TELEVISION SETS IN THAT PERIOD JUST AS IT WAS LAST YEAR BUT ABC WORLD NEWS TONIGHT RATINGS FOR THE SAME FOUR WEEKS ENDED JULY 25 ROSE 78 TO 97 FROM 90 OF HOMES AND THE AUDIENCE FOR NBC NIGHTLY NEWS JUMPED 67 TO 80 FROM 75 OF HOMES IT COULDN'T BE LEARNED YESTERDAY WHICH OTHER AGENCIES HAVE BEEN SUMMONED TO CBS ONE AGENCY THAT HASN'T BEEN INVITED TO THE TABLE IS MARGEOTES FERTITTA & WEISS WHICH CREATED THE CURRENT BREAKFAST FOR YOUR HEAD CAMPAIGN FOR CBS THIS MORNING WE DIDN'T WANT 'DINNER FOR YOUR HEAD' JOKES ONE CBS NEWS OFFICIAL WHO ADDS THE NETWORK IS NONETHELESS EXTREMELY PLEASED WITH THE WORK ANY NEW CAMPAIGN FOR CBS EVENING NEWS WOULD BE PRODUCED INHOUSE BY THE DIVISION'S NEW HEAD OF ADVERTISING AND PROMOTION GORDON MCLEOD WHO FORMERLY RAN HIS OWN OPERATION GRISANTI MCLEOD AND ONCE WORKED AT THE POLITICAL CONSULTING FIRM OF SAWYER/MILLER CBS SAYS IF IT ULTIMATELY CHOOSES AN AD AGENCY IT WOULD BE PAID A CONSULTING FEE THIS IS NOT A REVIEW SAYS MR SCHWEITZER CBS HOPES TO SPIFF UP THE IMAGE OF ITS NEW ANCHOR TEAM AS RIVALS ALSO BOOST THEIR PROMOTIONAL EFFORTS GENERAL ELECTRIC'S NBC UNIT RECENTLY HIRED 12YEAR CBS NEWS VETERAN JEFF KREINER TO HANDLE ADVERTISING AND PROMOTION FOR ITS EAST COAST OPERATION MR KREINER CAME OUT BLAZING FOR NBC NEWS PROGRAMS HE DEVISED THE CAMPAIGN WHAT A DIFFERENCE TODAY' MAKES FOR THE NETWORK'S MORNING SHOW WHICH IS IN A HEATED BATTLE WITH CAPITAL CITIES/ABC'S GOOD MORNING AMERICA FOR FIRST PLACE HE RETOOLED ONAIR PROMOTIONS FOR THE AMERICA CLOSEUP SEGMENT ON NIGHTLY NEWS WHICH USED TO CLOSE WITH ANCHOR TOM BROKAW SCOWLING NOW MR BROKAW IS SEEN SMILING AND APPEARS FAR MORE APPROACHABLE ADVERTISING IS CRITICAL TO A NEWSCAST BECAUSE NETWORKS ARE LOCKED IN TIGHT RATINGS RACES AS THE TOTAL AUDIENCE FOR THE 30MINUTE NEWSCASTS IS STAGNANT OR SHRINKING FROM YEAR TO YEAR THE ONLY WAY TO INCREASE VIEWING ON ONE FLAGSHIP NIGHTLY NEWSCAST BASICALLY IS TO STEAL IT FROM A COMPETITOR NEWS IS HABIT WATCHING SAYS MR KREINER THE CHALLENGE FOR ALL OF US IS TO DEVISE CAMPAIGNS THAT WILL GET VIEWERS TO BREAK THEIR HABIT YOU DO THAT BY CREATING AWARENESS IN THE NATION'S NO 1 MARKET NEW YORK THERE IS A PITCHED BATTLE OF SORTS BETWEEN CBS AND NBC THAT IS BEING FOUGHT ON OF ALL PLACES THE WEST SIDE HIGHWAY WHICH CARRIES CAR COMMUTERS TO AND FROM NEW YORK'S NORTHERN SUBURBS AND MIDTOWN MANHATTAN CBS PROUDLY DISPLAYS ITS BILLBOARD ON THE SOUTHBOUND SIDE OR HEADING INTO THE MANHATTAN AREA WITH ITS SLOGAN EXPERIENCE CBS NEWS ON THE OTHER SIDE IS A NEW BILLBOARD FROM NBC NEWS YESTERDAY ITS OLD BILLBOARD WITH THE PECULIAR SLOGAN WHERE SHOULD EVERY DICK AND HARRY GET THEIR NEWS FROM TOM OF COURSE WAS REMOVED AND REPLACED WITH IF IT AIN'T BROKAW FIX IT WITH TOM OF COURSE PERHAPS MR KREINER IS HAPPIEST WITH HIS PLANS FOR THE BILLBOARD HE ORDERED A SOCALLED LIGHTBOX TO BE BUILT WHICH WILL BLAZE NBC NEWS AT NIGHT AND OUTSHINE THE CBS BILLBOARD HOW DOES HE KNOW THAT MR KREINER WAS THE INDIVIDUAL WHO PUT TOGETHER THE CBS BILLBOARD ITS RIVAL'S WATTAGE ASIDE CBS NEWS HOPES TO HAVE A NEW CAMPAIGN FOR THE CBS EVENING NEWS IN PLACE BY THE END OF THIS MONTH AFTER ALL ITS NETWORK IS NO 1 IN HOUSEHOLDS IN PRIME TIME RATINGS AND CBS NEWS WANTS TO CAPITALIZE ON ALL THE ONAIR PROMOTION IT CAN RECEIVE IN THE SUMMER BABY BLUE ACCOUNTS AMBRA COMPUTER CORP AN INTERNATIONAL BUSINESS MACHINES CORP UNIT THAT SELLS VALUEPRICED PERSONAL COMPUTERS THROUGH THE MAIL HIRED FCB DIRECT OF NEW YORK A UNIT OF FOOTE CONE & BELDING COMMUNICATIONS AS ITS AD AGENCY THE NEW CAMPAIGN BREAKS TODAY IN NEWSPAPERS AMBRA IS BASED IN RALEIGH NC BIEDERMAN KELLY & SHAFFER OF NEW YORK SAID IT HAS ACQUIRED THE DIRECTMARKETING SHOP BAILEYLEHMAN DIRECT MARKETING AND WON ITS FIRST CLIENT IBM'S ARCHITECTURE AND ENGINEERING SERIES DESIGN SOFTWARE BILLINGS COULDN'T BE DETERMINED BLOCKBUSTER BLOCKBUSTER ENTERTAINMENT CORP SAID IT IS IN TALKS WITH AGENCIES ABOUT ADVERTISING FOR A NEW CHAIN BLOCKBUSTER MUSIC CONFIRMING A REPORT IN ADWEEK MAGAZINE THE FORT LAUDERDALE FLA VIDEO RETAILER INTENDS TO OPEN THE NEW CHAIN IN THE FOURTH QUARTER BY CONVERTING TWO RECENTLY ACQUIRED MUSIC CHAINS MUSIC PLUS AND SOUND WAREHOUSE BERNSTEINREIN OF KANSAS CITY MO HANDLES THE ESTIMATED 40 MILLION VIDEO PORTION OF THE BLOCKBUSTER ACCOUNT BUT ISN'T UNDER CONSIDERATION FOR THE NEW ACCOUNT WE BELIEVE THE MUSIC INDUSTRY NEEDS ITS OWN FOCUS SAID BRIAN WOODS VICE PRESIDENT OF MARKETING FASHION CAMPAIGN NEIMAN MARCUS IS TAKING A NEW APPROACH TO ADVERTISING IN ITS BIG FALLFASHION CAMPAIGN BREAKING SUNDAY IN REGIONAL NEWSPAPERS CITING A CURIOUS ABSENCE OF TRENDS IN THE FALL AND WINTER FASHION COLLECTIONS UNVEILED LAST SPRING THE BIG DALLASBASED RETAILER HAS DECIDED TO ENCOURAGE WOMEN TO CREATE THEIR OWN PERSONAL LOOKS BY TRUSTING THEIR OWN TASTE IN CLOTHES INSTEAD OF PUSHING SPECIFIC MERCHANDISE 9308030001 930803 CHIQUITA POSTS NET OF 77 MILLION SLASHES DIVIDEND FOR QUARTER CINCINNATI CHIQUITA BRANDS INTERNATIONAL INC POSTED SECONDQUARTER NET INCOME OF 77 MILLION OR 15 CENTS A SHARE ON SALES OF 6824 MILLION THAT COMPARES WITH A YEARAGO LOSS OF 167 MILLION OR 32 CENTS A SHARE REFLECTING A LOSS FROM DISCONTINUED OPERATIONS OF 10 MILLION OR 19 CENTS A SHARE SALES IN THE YEARAGO PERIOD WERE 7818 MILLION IN ADDITION THE FOOD COMPANY SLASHED ITS QUARTERLY DIVIDEND TO FIVE CENTS A SHARE FROM 17 CENTS A SHARE WILLIAM LEACH AN ANALYST WITH DONALDSON LUFKIN & JENRETTE WHO RATES CHIQUITA STOCK UNATTRACTIVE HAD ESTIMATED 20 CENTS A SHARE IN EARNINGS FOR THE QUARTER ENDED JUNE 30 HOWEVER MR LEACH SAID GIVEN THE UNPREDICTABILITY OF THEIR BUSINESS I'D SAY THAT'S IN LINE MR LEACH SAID HE WAS SURPRISED BY THE SIZE OF THE DIVIDEND REDUCTION HE'D EXPECTED CHIQUITA TO CUT IT IN HALF THE COMPANY'S HIGHLY LEVERAGED AND IT'S NOT MAKING MUCH MONEY THOUGH THINGS ARE IMPROVING HE SAID CHIQUITA IS BURDENED BY DEBT RELATED TO SUBSTANTIAL CAPITAL SPENDING DURING THE PAST FEW YEARS CAPITAL SPENDING INCREASED TO 410 MILLION LAST YEAR FROM 48 MILLION IN 1987 HE SAID KEITH E LINDNER CHIQUITA PRESIDENT AND CHIEF OPERATING OFFICER SAID THE DIVIDEND IS BEING CUT AS PART OF OUR OVERALL PROGRAM TO STRENGTHEN OUR BALANCE SHEET AND PROMOTE LONGTERM GROWTH IN SHAREHOLDER VALUE CHIQUITA SAID IT IS IN THE MIDST OF A RESTRUCTURING AND COSTREDUCTION PROGRAM THAT HAS RESULTED IN A MAJOR IMPROVMENT IN FIRSTHALF OPERATING RESULTS COMPARED TO THE PRIOR YEAR DESPITE DEPRESSED WORLDWIDE BANANA PRICES HOWEVER MR LEACH SAID SEASONAL FACTORS IN THE REST OF THE YEAR MEAN THAT THEY'LL PROBABLY LOSE MONEY IN THE SECOND HALF 9308030106 930716 POTOMAC WATCH IN NEW JERSEY CHOICE IS TAX CUTS OR OAT BRAN' BY PAUL A GIGOT CLARK NJ THE MOST IMPORTANT ELECTION THIS YEAR PITS AN UPPERCRUST REPUBLICAN WHO IS A PAL OF FORMER TREASURY SECRETARY NICHOLAS BRADY AGAINST A POPULIST CLASSWARRING DEMOCRAT ADVISED BY JAMES CARVILLE OH NO HERE WE GO CAN THIS REALLY BE HAPPENING THIS TIME THE INCUMBENT WHO LIED ABOUT TAXES IS THE DEMOCRAT NEW JERSEY GOV JIM FLORIO YET IT IS HIS REPUBLICAN CHALLENGER FROM HORSE COUNTRY CHRISTINE TODD WHITMAN WHO IS SO FAR DOING THE GEORGE BUSH IMITATION WHAT IS IT ABOUT REPUBLICANS AND MASOCHISM ANYWAY THE JERSEY ELECTION TO BE HELD THIS NOVEMBER IS IMPORTANT BECAUSE IT IS THE OFFBROADWAY TRYOUT FOR ANOTHER DEMOCRAT WHO RAISED TAXES MUCH MORE THAN HE SAID HE WOULD LIKE BILL CLINTON MR FLORIO ALSO SANK LOW BELOW 20 IN THE POLLS YET THE PAIR ARE NOW A MUTUALADMIRATION SOCIETY MR CLINTON PRAISES MR FLORIO AS A MODEL FOR HIS OWN HARD CHOICES HE'S ALSO SENT HIS OWN DELTA FORCE TO MOUNT THE REELECTION RESCUE MR CARVILLE WITH HIS TONTO PAUL BEGALA MEDIAMEISTER MANDY GRUNWALD PLUS AL GORE'S FAVORITE SPEARTHROWER CARTER ESKEW IF WE WIN I'LL TELL YOU RIGHT NOW I'M GONNA SAY IT'S A VICTORY FOR THE PRESIDENT SAYS MR CARVILLE BUT THE RACE MATTERS EVEN MORE TO REPUBLICANS WHO HAVE AN IDEAL CHANCE TO REGAIN THE OFFENSIVE ON ECONOMICS MR FLORIO PLANS TO DEFEND HIMSELF AND SHRED MS WHITMAN BY WAGING POPULIST WAR ON THE RICH AND THE 1980S IF REPUBLICANS CAN BEAT HIM ANYWAY IN A STATE THAT MR CLINTON CARRIED LAST YEAR THEY WOULD STRIP MUCH OF THE POLITICAL ELAN FROM CLINTONOMICS THEY ALSO WON'T FIND BETTER POLITICAL TERRAIN ONLY THREE YEARS AGO MR FLORIO RAISED TAXES ON EVERYTHING FROM PHONE CALLS TO TOILET PAPER AND ON PEOPLE EARNING AS LITTLE AS 35000 INSPIRING THE BIGGEST TAX REVOLT SINCE BOSTON HARBOR THE STATE'S ECONOMY LATER LOST 300000 JOBS ONLY RECENTLY EMERGING FROM RECESSION AND 9 UNEMPLOYMENT A FORMER BOXER MR FLORIO ALSO HAS THE POLARIZING CHARM OF A VELOCIRAPTOR YET MANY REPUBLICANS THINK CHRISTIE WHITMAN IS SQUANDERING HER CHANCE SHE IS PLAYING NOT TO LOSE RATHER THAN TO WIN SAYS ONE WORRIED PROWHITMAN REPUBLICAN HER THEME CAN BE BOILED DOWN TO VOTE FOR ME I'M NOT JIM FLORIO' JEFF BELL WHO LIKE MS WHITMAN HAS NARROWLY LOST A NEW JERSEY SENATE RACE ADDS THAT IT'S VERY TEMPTING WHEN YOU HAVE SOMEONE WITH THE REPUTATION OF FLORIO NOT TO TAKE ANY RISKS WITH WHAT YOU'RE TELLING THE ELECTORATE MS WHITMAN'S CAUTION OR INDECISION IS ERODING WHAT SHOULD BE HER BIG ADVANTAGE THE ECONOMY AND TAXES SHE'S HAPPY TO RIP THE FLORIO RECORD BUT SO FAR SHE'S OFFERING NO VISION OR PROGRAM OF HER OWN BEYOND SOME TOKEN BUSINESS INCENTIVES INCREDIBLY SHE HAS EVEN LET MR FLORIO PUT HER ON THE DEFENSIVE ON TAXES WHEN REPUBLICANS WHO CONTROL THE STATE LEGISLATURE FLOATED A SMALL TAX CUT THIS SPRING MR FLORIO WAS QUICK TO HAIL THE MIDDLE CLASS TAX CUT JUST AS MR CLINTON WILL IN 1995 MARK IT DOWN BUT MS WHITMAN DEPLORED THE CYNICAL CALL TO PROMISE TAX CUTS FOR THE PURPOSES OF REELECTION WHEN THE MONEY ISN'T THERE REPUBLICANS PULLED THEIR PLAN AND MR CARVILLE NOW CALLS HER THE LET 'EM EAT OAT BRAN CANDIDATE THE TWO ARE NOW IN A DEAD HEAT IN AN INTERVIEW MS WHITMAN SHOWS THE SAME SUICIDAL AMBIVALENCE SHE SAYS REPEALING THE FLORIO TAXES REMAINS HER GOAL EVENTUALLY AT SOME POINT SOONER OR LATER BUT FIRST SHE MUST WORRY ABOUT THE STATE'S STRUCTURAL DEFICIT THIS ASSUMES VOTERS CARE MORE ABOUT POTENTIAL DEFICITS THAN THEY DO ABOUT REAL JOBS MS WHITMAN MAY BE RIGHT ABOUT MR FLORIO'S TAX CYNICISM BUT SHE'S WRONG ABOUT THE POLITICS FOR IF VOTERS ASSUME SHE HAS NO PLAN TO REPEAL THE TAXES OR GROW THE ECONOMY THEY WILL THINK THE ISSUE IS OFF THE TABLE THEN THE ELECTION WILL BE FOUGHT OVER VALUES AND PERSONAL BACKGROUND A PLAYING FIELD BETTER SUITED TO A STREETFIGHTING INCUMBENT FROM BROOKLYN THAN TO THE DAUGHTER OF A CONSTRUCTION BARON FROM THE ROLLING ESTATES OF SOMERSET COUNTY TO BE FAIR THE 46YEAROLD POLITICAL VETERAN HAS SHOWN SOME POPULIST INSTINCTS SHE FAVORS BOTH TERM LIMITS AND THE RIGHT TO VOTER REFERENDUMS AND SHE'S CHANGED HER MIND TO ENDORSE VOUCHERS FOR THE STATE'S DREADFUL URBAN PUBLIC SCHOOLS SHE CAN ALSO ROLL WITH A PUNCH WHAT THEY'RE GOING TO DO IS PAINT ME AS THE LEONA HELMSLEY OF NEW JERSEY AND MY HUSBAND A FORMER INVESTMENT BANKER AS THE IVAN BOESKY SHE QUIPS SO PERHAPS SHE'LL BECOME A GROWTH REPUBLICAN YET THIS WEEK SHE RECRUITED TWO TAXCUTTERS ECONOMIST LARRY KUDLOW AND PUBLISHER STEVE FORBES TO DEVISE A GROWTH PLAN BUT THEY WILL HAVE TO OVERCOME OTHER ADVISERS TOO COWED BY CLASS WAR TO BELIEVE THAT 1990S AUSTERITY IS MAKING VOTERS NOSTALGIC FOR 1980S PROSPERITY MS WHITMAN MIGHT ALSO LISTEN TO THOMAS KEAN THE TWOTERM JERSEY GOVERNOR WHO IS PRIVATELY URGING HER TO ENDORSE AN ACROSSTHEBOARD INCOMETAX CUT IN 1981 ANOTHER YEAR OF ECONOMIC UNCERTAINTY MR KEAN IGNORED BOTH GOP OFFICIALS AND A SKEPTICAL MEDIA AND RAN ON A TAXCUTTING PLATFORM HIMSELF HE RECRUITED JACK KEMP FOR A TV AD AND DEFEATED A DEMOCRAT WHO ALSO BRANDED HIM A TOOL OF THE WEALTHY THE LOSER'S NAME JIM FLORIO SEE RELATED LETTER LETTERS TO THE EDITOR READ MY DECEPTION WSJ AUG 3 1993 9307160088 YY93 MM08 9308020167 930802 PANHANDLE EASTERN UNIT'S NOTES HOUSTON PANHANDLE EASTERN CORP SAID ITS TEXAS EASTERN TRANSMISSION CORP SUBSIDIARY PLANS TO REDEEM 100 MILLION OF ITS 10 NOTES DUE JUNE 15 1998 THE NATURALGAS PIPELINE COMPANY SAID THE REDEMPTION PRICE IS 10279 OF THE PRINCIPAL AMOUNT PLUS INTEREST ACCRUED TO AUG 30 9308020166 930802 INTERNATIONAL ISTANBUL CALLS ITS BIGGEST TAXPAYER MADAM' VERY OFTEN WITH RESPECT BY JAMES M DORSEY SPECIAL TO THE WALL STREET JOURNAL ISTANBUL TURKEY FANS CALL HER THE GREAT TURKISH WOMAN CRITICS RECOIL AT THE MENTION OF HER NAME MATILT MANOKYAN 30 YEARS AFTER SHE ACQUIRED HER FIRST BROTHEL HAS BECOME A SOUGHTAFTER PLAYER IN TURKEY'S BOOMING ECONOMY AND A HERO FOR A NEW GENERATION OF YOUNG PROFESSIONAL IN THE LEGITIMATE SENSE WOMEN AT NEARLY 80 YEARS OF AGE SHE COMMANDS ENOUGH STATURE FROM HER INDIVIDUALIST STREAK HER FIERCE LOYALTY TO THE TURKISH STATE HER GENEROSITY TOWARD THE POOR AND THE FACT THAT SHE PAID ABOUT 9 MILLION IN INCOME TAX LAST YEAR TO MAKE HER ISTANBUL'S LEADING CITIZEN AT LEAST AS FAR AS TAXES ARE CONCERNED FEW DARE OPENLY ATTACK MS MANOKYAN FOR BUILDING AN EMPIRE ON THE PROCEEDS OF PROSTITUTION BEYOND HER 11 REMAINING BROTHELS HER EMPIRE TODAY INCLUDES 37 SHOPPING CENTERS A 36 MILLION TEXTILE FACTORY A PACKAGING PLANT AND DOZENS OF CHOICE APARTMENT BLOCKS AND VILLAS AN ISTANBUL DISTRICT COURT IS AMONG HER NUMEROUS TENANTS I'D NEVER BE ABLE TO BREAK TAX RECORDS WITH MY BROTHELS ALONE SHE SAYS I NO LONGER WANT TO BE KNOWN AS A BROTHEL MADAM MS MANOKYAN A CHAINSMOKER WITH UNKEMPT HAIR AND WELLWASHED WOOLEN STOCKINGS HAS FORCED HER WAY INTO TURKEY'S PREDOMINANTLY MALE ECONOMIC ELITE WHILE RUNNING A BUSINESS THAT VIOLATES THE VERY ESSENCE OF ISLAM SHE WAS FOR FIVE CONSECUTIVE YEARS THE BIGGEST TAXPAYER IN ISTANBUL AND FOR FOUR YEARS BEFORE THAT SHE WAS THE LEADING TAXPAYING INDIVIDUAL IN ALL OF TURKEY PAYING TAXES IS AN HONOR SHE SAYS MAKING A POINT OF HER RESPECTABILITY IN AT LEAST ONE AREA I NEVER CONSIDERED RIPPING OFF THE STATE IT'S AGAINST THE LAW TO KEEP WHAT BELONGS TO OTHERS SHE SAYS MANOKYAN THE MODEL CITIZEN READS A RECENT HEADLINE IN HURRIYET A MASSCIRCULATION DAILY NEWSPAPER MANOKYAN TEACHES TURKS A LESSON SAYS ANOTHER PROMINENT DAILY HER DONATIONS TO THE NEEDY AND HER MANY ACQUISITIONS INCLUDING A BULLETPROOF ROLLSROYCE AN ISLAND IN THE BOSPORUS WITH A 7 MILLION VILLA AND A CUSTOMBUILT YACHT REPEATEDLY MAKE HEADLINES ACTRESS FATIMA GIRIK THE MAYOR OF MS MANOKYAN'S ISTANBUL NEIGHBORHOOD IS SLATED TO PLAY MANOKYAN IN A FILM ON HER LIFE MS MANOKYAN'S FIRST TELEVISION INTERVIEW BROADCAST IN TWO PARTS THIS SPRING WAS THE TALK OF ISTANBUL WITH SEVERAL TURKS AMONG THE FORTUNE 500 PEOPLE WERE SHOCKED THAT OUR NO 1 TAXPAYER IS A BROTHEL MADAM ALL THE MORE SO BECAUSE SHE IS A WOMAN WHO HAS MADE IT IN A MACHO SOCIETY SAYS A PROMINENT FEMALE PSYCHOLOGIST WHO DESPITE HER REGARD FOR MS MANOKYAN DECLINES TO BE NAMED IN THE SAME BREATH SHE'S BECOME A CULT HERO A KIND OF SHREWD SUCCESSFUL AND INTELLIGENT MAE WEST ADDS REALESTATE AGENT JOHN CAL MR CAL DREAMS OF MANAGING A CHUNK OF MS MANOKYAN'S VAST HOLDINGS SOMEDAY BUT SHE HAS A PATHOLOGICAL DISLIKE OF OTHER PEOPLE DOING HER BUSINESS MS MANOKYAN THE DAUGHTER OF A POOR BRANCH OF A PROMINENT FAMILY WAS FORCED TO BREAK OFF HER EDUCATION AND BECOME A SEAMSTRESS I WAS NO SIMPLE SEAMSTRESS MY CLIENTS WERE ARISTOCRATS HIGHSOCIETY PEOPLE AND MODELS SHE BOASTS MY NAME BECAME A DESIGNER LABEL SHE SAYS SHE STOPPED MAKING DRESSES WHEN SHE MARRIED AN ARMENIAN BUSINESSMAN IN 1941 WITH NO INCOME NO RESERVES AND HER HUSBAND DYING OF TUBERCULOSIS LITTLE MORE THAN A DECADE LATER SHE RETURNED TO TAILORING WHEN A CLIENT COULDN'T PAY OFF A DEBT SHE OFFERED MS MANOKYAN A SHARE IN A BROTHEL SHE OWNED WITHIN MONTHS MS MANOKYAN HAD GIVEN UP SEWING TO MANAGE THE BROTHEL'S CASH REGISTER TWO YEARS LATER SHE HAD BOUGHT OUT HER PARTNERS AND OPENED SEVERAL OTHER ESTABLISHMENTS I'M FULFILLING A NEED A VISIT TO THE BROTHEL ENLIGHTENS AND EXPANDS ONE'S VIEW OF LIFE SHE SAYS SHE IS LIKE A MOTHER TO ME SHE PROTECTS ME SAYS LEYLA KANAT A 34YEAROLD PROSTITUTE WHO HAS WORKED FOR MS MANOKYAN FOR FIVE YEARS YET A TURKISH WOMAN JOURNALIST WHO DECLINES TO BE IDENTIFIED SAYS SHE WALKED AWAY DISGUSTED FROM AN OFFTHERECORD HEARTTOHEART WITH MS MANOKYAN SHE USED OBSCENE LANGUAGE TO DESCRIBE HOW SHE EARNED HER MONEY AND WAS DEROGATORY ABOUT THE WOMEN WORKING FOR HER SHE WAS DISGUSTING SHE SAYS CASTING FURTHER DOUBT ON MS MANOKYAN'S IMAGE TURKISH NEWSPAPERS LAST YEAR REPORTED THE TEMPORARY CLOSURE OF NINE OF HER ESTABLISHMENTS AND THE ARREST OF 36 OF HER 200 PROSTITUTES FOURTEEN WERE REPORTED TO HAVE BEEN UNDER AGE A CHARGE THAT MS MANOKYAN DENIES THE RAID A RARE INCIDENT FOLLOWED THE REPLACEMENT OF ISTANBUL'S POLICE CHIEF ONE OF MS MANOKYAN'S ADMIRERS HER BUSINESS NOTWITHSTANDING MS MANOKYAN PROFESSES TO UPHOLD OLDTIME FAMILY VALUES FLIRTING AND DATING WAS FORBIDDEN IN MY TIME SHE SAYS TODAY PEOPLE FLIRT AND DATE FOR EXTENDED PERIODS BEFORE GETTING MARRIED AND ULTIMATELY BREAKING UP AGAIN ARRANGED MARRIAGES ARE MUCH BETTER ONE ACCEPTS THE SITUATION AND LEARNS TO LIVE WITH IT WOMEN'S RIGHTS MS MANOKYAN BELIEVES ARE STUPID WOMEN SHOULD STAY AT HOME AND NOT DECEIVE THEIR MEN SHE SAYS MEN HAVE A HIGHER STANDING AND ARE FREER THEY NEED NOT COME HOME AND CAN GO AROUND WITH OTHER WOMEN SHE SAYS EXPOUNDING A PHILOSOPHY THAT CLEARLY SERVES HER PURPOSE DESPITE ALL MS MANOKYAN'S CHARITY HER PARTICIPATION IN A SUFI BROTHERHOOD AND HER STAUNCH TURKISH NATIONALISM TAYAR KESKIN IMAM AT THE MOSQUE NEAR MANOKYAN'S HOME IS NOT IMPRESSED WE HAVE A WORD IN ISLAM HARAM WHICH MEANS FORBIDDEN MR KESKIN SAYS MONEY THAT WAS EARNED THROUGH HARAM CANNOT BE USED TO SERVE ALLAH THE IMAM NEVERTHELESS IS RELUCTANT TO COME DOWN TOO HARD ON MS MANOKYAN HIS PREDECESSOR TRIED AND WAS FORCED TO RETIRE I CANNOT JUDGE HER RELATIONSHIP WITH ALLAH MR KESKIN SAYS ALLAH MAY THINK HIGHLY OF HER HE MAY FORGIVE HER BECAUSE OF HER GOOD DEEDS THAT IS UP TO ALLAH 9308020165 930802 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FIVE NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE INITIAL PUBLIC OFFERING AND THE NASDAQ OVERTHECOUNTER SECURITIES MARKET ANNOUNCED SEVEN NEW LISTINGS INCLUDING SIX INITIAL PUBLIC OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS AT&T CAPITAL CORP MORRISTOWN NJ FORMERLY A LEASING AND FINANCE UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO UNDER TCC ALLIANCE WORLD DOLLAR GOVERNMENT FUND II NEW YORK A CLOSEDEND FUND UNDER AWF CRESTAR FINANCIAL CORP RICHMOND VA A HOLDING COMPANY FOR THREE BANK UNITS UNDER CF AND AMERICAN DEPOSITARY SHARES OF SHANGHAI PETROCHEMICAL CO A MAJOR CHINESE PETROCHEMICAL CONCERN UNDER SHI SOUTHWESTERN PROPERTY TRUST INC A REAL ESTATE INVESTMENT TRUST IN DALLAS THAT PREVIOUSLY TRADED ON THE AMEX BEGAN TRADING ON THE BIG BOARD UNDER SWP THE FOLLOWING INITIAL PUBLIC OFFERINGS BEGAN TRADING ON THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET KEY TECHNOLOGY INC WALLA WALLA WASH A MAKER OF AUTOMATED FOOD PROCESSING SYSTEMS UNDER KTEC MRS TECHNOLOGY INC CHELMSFORD MASS A MAKER OF PHOTOLITHOGRAPHIC MACHINES UNDER MRSI PETSMART INC PHOENIX ARIZ AN OPERATOR OF STORES SELLING PET SUPPLIES UNDER PETM WONDERWARE CORP IRVINE CALIF A SOFTWARE CONCERN UNDER WNDR MOUNTAIN PARKS FINANCIAL CORP MINNEAPOLIS A BANK HOLDING COMPANY UNDER MPFC AND OMNI INSURANCE GROUP INC ATLANTA AN AUTOMOBILE INSURER UNDER OMGR OMEGA ENVIRONMENTAL INC A PROVIDER OF PRODUCTS AND SERVICES FOR UNDERGROUND STORAGE TANK SYSTEMS BASED IN BOTHELL WASH PREVIOUSLY TRADING ON THE NASDAQ SMALL CAP MARKET WAS LISTED IN THE NATIONAL MARKET SYSTEM THE AMERICAN STOCK EXCHANGE LISTED THE FIRST PUBLICLY OFFERED DEBT SECURITIES TIED TO THE PERFORMANCE OF AN UNRELATED COMPANY'S STOCK SALOMON INC 675 COMMON EQUITYLINKED SECURITIES UNDER DLK RELATED TO THE PRICE OF DIGITAL EQUIPMENT CORP COMMON STOCK THE CHICAGO STOCK EXCHANGE LISTED PIONEER RAILCORP A RAILROAD OPERATOR BASED IN CHILLICOTHE ILL UNDER PRR THE PACIFIC STOCK EXCHANGE AMEX AND THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON ROYAL CARRIBBEAN CRUISES A MIAMIBASED OPERATOR OF CRUISE LINES AMEX AND THE CBOE ALSO BEGAN TRADING OPTIONS ON VIDEO LOTTERY TECHNOLOGIES INC A MAKER OF PRODUCTS FOR ONLINE LOTTERY SYSTEMS BASED IN BOZEMAN MONT THE CBOE ALSO LISTED OPTIONS OF INTEGRATED HEALTH SERVICES INC A HUNT VALLEY MD PROVIDER OF SUBACUTE HEALTH CARE SERVICES AND PHYSICIAN CORP OF AMERICA A MIAMIBASED MANAGED HEALTH CARE CONCERN 9308020164 930802 ECONOMY KEENER COMPETITION KEEPS PRICE INCREASES AND INFLATION AT BAY FEAR OF LOSING MARKET SHARE IS OVERCOMING TENDENCY TO FATTEN PROFIT MARGINS BY ERLE NORTON AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL IN MOST RECOVERIES COMPANIES USE INCREASED DEMAND AS AN EXCUSE TO RAISE PRICES AND WITH THEM THE INFLATION RATE BUT NOT THIS TIME THE DIFFERENCE IS INTENSE COMPETITION IN THIS RECOVERY PRODUCERS HAVE BEEN PLAGUED BY A FEAR THAT CUTTHROAT RIVALS WILL ROB THEM OF MARKET SHARE IF THEY RAISE PRICES THAT MARKETSHARE MENTALITY PARTICULARLY IN INDUSTRIES WITHOUT DOMINANT PRODUCERS HAS FOSTERED INTENSE COMPETITION THAT OUTWEIGHS THE NORMAL TENDENCY TOWARD HIGHER PRICES AND PROFIT MARGINS PRODUCERS IN MANY INDUSTRIES DIAPER MAKERS TIRE MANUFACTURERS FOOD COMPANIES CLOTHING PEDDLERS AND ELECTRONICS CONCERNS AMONG OTHERS ARE COMPLAINING THAT COMPETITION HAS KEPT PRICE INCREASES OFF THE BOOKS THAT KEEPS INFLATION AT BAY HEIGHTENED COMPETITION IN THIS RECOVERY PARTICULARLY FROM PRODUCERS IN THE THIRD WORLD HAS ALTERED THE BALANCE OF SUPPLY AND DEMAND SAYS RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK CORP IN PITTSBURGH THERE'S A GAME OF MUSICAL CHAIRS IN CERTAIN INDUSTRIES WHERE THERE'S TOO MUCH CAPACITY HE ADDS THEY KNOW IF THEY CAN GET MARKET SHARE AWAY FROM OTHERS THEY'LL BE THE WINNERS NOT ALL PRODUCTS ARE SUBJECT TO THE NOPRICERISE THINKING EVEN AMONG CIGARETTES AN INDUSTRY RAVAGED BY PRICECUTTING PRICES HAVE RISEN 30 ON DISCOUNT SMOKES SINCE APRIL THE COST OF HEALTH CARE HAS CLIMBED AT A 7 ANNUAL RATE IN THE PAST THREE MONTHS ACCORDING TO THE BUREAU OF LABOR STATISTICS THE PRICE OF USED CARS ROSE AT AN 115 ANNUAL RATE IN APRIL MAY AND JUNE AFTER CLIMBING 4 TO 7 THIS YEAR FURNITURE PRICES MAY RISE MORE INDUSTRY EXECUTIVES SAY AS OTHER MANUFACTURERS TRY TO MAKE UP FOR RISING LUMBER PRICES ACCORDING TO A UNIVERSITY OF MICHIGAN SURVEY CONSUMERS BELIEVE PRICES WILL CLIMB 45 OVER THE NEXT 12 MONTHS UP ONE PERCENTAGE POINT FROM JANUARY SUCH EVIDENCE HELPS TO EXPLAIN FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S TESTIMONY ABOUT TWO WEEKS AGO THAT THE NEWS ON INFLATION THIS YEAR MUST BE CHARACTERIZED AS DISAPPOINTING MR GREENSPAN ACKNOWLEDGED THAT THE MAY AND JUNE PRICE FIGURES HAVE HELPED ASSUAGE CONCERNS THAT NEW INFLATIONARY PRESSURES HAD TAKEN HOLD BUT POINTED OUT THAT HE AND OTHER FED OFFICIALS HAD HOPED THE INFLATION RATE WOULD ACTUALLY DECLINE THIS YEAR INSTEAD IT HAS AT BEST STABILIZED HE SAID BUT THAT'S ONLY PART OF THE PICTURE MR GREENSPAN NOTED THAT CONSUMER PRICE REPORTS FROM THE GOVERNMENT REVEAL WHAT HAS HAPPENED NOT WHAT IS HAPPENING AND IS ABOUT TO HAPPEN TO PRICES MR GREENSPAN MADE CLEAR THAT FOR VARIOUS ECONOMIC REASONS FROM HIGH UNEMPLOYMENT TO STIFF COMPETITION FROM ABROAD HE SEES NO REASON THAT INFLATION SHOULD TAKE OFF THAT BELIEF IS UNDERSCORED BY THE MANY COMPANIES THAT ARE ACTUALLY CUTTING PRICES PROCTER & GAMBLE CO IS CUTTING PRICES ON LAUNDRY DETERGENTS BY 15 AND PHILIP MORRIS COS RECENTLY MADE PERMANENT A 40 CENTSAPACK REDUCTION ON ITS MARLBORO AND OTHER PREMIUM BRANDS BOTH COMPANIES HAVE BEEN HIT HARD BY COMPETITION FROM PRIVATELABEL PRODUCERS SIMILARLY GOODYEAR TIRE & RUBBER CO AND OTHER TIRE MAKERS HAVE SEEN THEIR PLANNED PRICE INCREASES DISSOLVE AMID DISCOUNTING BY FOREIGN COMPETITORS TRYING TO MAKE USE OF EXCESS CAPACITY AT HOME KROGER CO THE CINCINNATIBASED GROCERY STORE CHAIN SAYS COMPETITION IN MANY MARKETS HAS KEPT PRICES STABLE OR EVEN DOWN YOU HAVE A TREMENDOUSLY COMPETITIVE MARKET PLACE A SPOKESMAN SAYS KROGER'S STRATEGY IS TO GRAB THE FIRST OR SECONDBIGGEST CHUNK OF SHARE IN EACH MARKET IT SERVES HOW DO YOU DO THAT YOU CUT PRICES AND PROMOTE AND COUPON THE SPOKESMAN SAYS CONSUMERS ARE ONLY TOO HAPPY TO OBLIGE COMPANIES FIGHTING FOR MARKET SHARE THE CONSUMER IS NEITHER IN THE MOOD NOR HAS THE CAPACITY FOR HIGHER PRICES SAYS DONALD RATAJCZAK AN INFLATIONWATCHER WHO DIRECTS THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY IN ATLANTA WHILE HE PROJECTS CONSUMER PRICES WILL CLIMB ABOUT 3 THIS YEAR HE SEES THE MAJOR INFLATION DANGERS COMING FROM GOVERNMENT IN THE FORM OF GASOLINE TAXES AND THE LIKE THE MARKETSHARE FIGHT EXTENDS TO THE MOST BASIC PRODUCTS TAKE A SIMPLE COLORED TSHIRT WITH A FRONT POCKET LANDS' END INC THE CATALOG RETAILER CUT THE PRICE OF ITS TSHIRTS TO 12 FROM 15 IN APRIL WHILE THE COMPANY TRADITIONALLY HAS MARKETED ITS PRODUCTS BASED ON QUALITY WE CERTAINLY ARE KEEPING OUR PRICES COMPETITIVE A SPOKESWOMAN SAYS LANDS' END HAS LITTLE CHOICE WITH COMPANIES LIKE FRUIT OF THE LOOM INC AND GAP INC SELLING SIMILAR TSHIRTS IN SOME CASES FOR LESS CHICAGOBASED FRUIT OF THE LOOM IS EVEN TURNING TO GIVEAWAYS IN SOME PRODUCTS IN ITS SIXPACKS OF MEN'S UNDERWEAR FOR INSTANCE IT THROWS IN A SEVENTH PAIR FREE EFFECTIVELY A PRICE CUT AND IT'S PUTTING BASEBALL CARDS IN PACKS OF BOY'S UNDERWEAR PRICE COMPETITION FOR CONSUMER ELECTRONICS MEANWHILE HAS BECOME SAVAGE AGGRAVATED BY TECHNOLOGICAL ADVANCES THAT MAKE PRODUCTION CHEAPER PRICES OF TELEVISION SETS ESPECIALLY ONES WITH BIG SCREENS ARE FALLING AS MANUFACTURERS SCRAMBLE TO BOOST SALES AND THEY'RE ADDING MORE FEATURES FOR FREE THE LARGER THE TV THE LARGER THE PRICE DROP THIS YEAR SAYS STUART A ROSE CHAIRMAN OF AUDIO/VIDEO AFFILIATES INC A DAYTON OHIO CHAIN OF CONSUMER ELECTRONIC STORES AUDIO/VIDEO SELLS 31INCH TV SETS FOR 699 DOWN FROM 999 TWO YEARS AGO COMPUTER PRICES LIKELY WILL CONTINUE TO FALL FOR SIMILAR REASONS HOME COMPUTER PRICES WERE DOWN AT AN ANNUAL RATE OF 37 IN THE YEAR'S FIRST HALF AFTER DRAMATIC DECLINES IN 1992 COMPUTER PRICES ARE GETTING CLOSE TO THE COST OF THE MATERIALS SAYS HOWARD ELIAS VICE PRESIDENT FOR MARKETING OF AST RESEARCH INC A COMPUTER MAKER THOUGH DEMAND FOR COMPUTERS IS GROWING THAT WON'T TRANSLATE TO HIGHER PRICES SAYS MR ELIAS WE'RE AT THE POINT WHERE MORE THAN ENOUGH COMPANIES ARE CHASING THE DEMAND OUT THERE 9308020163 930802 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST SINGLE STATE MUNI BOND WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY SUBSCRIBED VCONVERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE SOURCELIPPER ANALYTICAL SERVICES INC 9308020162 930802 NIAGARA MOHAWK SEEKS FLEXIBLE RATES FOR BIG GAS USERS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NIAGARA MOHAWK POWER CORP IS SEEKING TO OFFER MARKETBASED RATES FOR ITS LARGEST NATURALGAS CUSTOMERS REFLECTING THE UTILITY INDUSTRY'S ATTEMPT TO COMPETE WITH NONUTILITY ENERGY PROVIDERS AMID A GLUT FOR POWER IN THE NORTHEAST NIAGARA HAS FILED A REQUEST WITH THE NEW YORK STATE PUBLIC SERVICE COMMISSION TO APPROVE A SOCALLED FLEXIBLE RATE STRUCTURE THAT COULD OFFER COMPETITIVELY PRICED NATURAL GAS TO CUSTOMERS THAT PURCHASE GAS FROM NONUTILITY SOURCES IT FOLLOWS A SIMILAR MOVE BY NIAGARA IN MARCH TO SEEK LOWER RATES FOR BIG ELECTRIC CUSTOMERS UTILITIES CONTEND THAT THE REQUIREMENTS IN THE 1980S THAT SET A FIXED PRICE FOR NATURAL GAS LEFT THEM UNABLE TO COMPETE WITH THE NONUTILITY SUPPLIERS OF GAS WHILE THE RESTRICTIONS WERE LIFTED IN 1992 UTILITIES ARE STILL TRYING TO REGAIN MARKET SHARE NIAGARA ISN'T THE FIRST UTILITY TO REQUEST FLEXIBLE PRICING BUT THE MOVE TOWARDS MARKETBASED PRICING IS PICKING UP STEAM BECAUSE UTILITIES DON'T HAVE THE FLEXIBILITY TO CHANGE RATES TO MEET MARKET CONDITIONS MOST LARGE CUSTOMERS HAVE FOUND IT ADVANTAGEOUS TO BUY NATURAL GAS FROM OTHERS WHO CAN OFFER THAT FLEXIBLITY SAID ROBERT PATRYLO SENIOR VICE PRESIDENT AT NIAGARA ANY PROGRESSIVE LOCAL DISTRIBUTION COMPANY IS PROBABLY LOOKING AT THIS AND WORKING ON IT RIGHT NOW A SPOKESWOMAN FOR THE AMERICAN GAS ASSOCIATION SAID IT'S SOMETHING WE'VE ENCOURAGED TO COMPETE AGAINST THE POSSIBILITY OF BYPASS THAT REFERS TO CUSTOMERS BYPASSING UTILITIES FOR OTHER VENDORS MR PATRYLO SAID THE COMPANY IS EXPLORING VARIOUS PRICING STRATEGIES FROM PLANS BASED ON THE FUTURES MARKET FOR GAS TO GUARANTEED PRICE CAPS OR LOCKING IN PRICES A YEAR OR MORE TO DELIVERY THE COMPANY ESTIMATES THAT IT HAS LOST 150 MILLION IN ANNUAL REVENUE TO THIRD PARTY MARKETERS OF COURSE FLEXIBLE PRICING WOULD GIVE NIAGARA THE ABILITY TO RAISE PRICES IF AND WHEN DEMAND FOR ENERGY PICKS UP REGULATORS HAVE TENTATIVELY APPROVED THE COMPANY'S REQUEST FOR FLEXIBLE PRICING FOR ELECTRICITY CONTINGENT UPON FUTURE REGULATORY GUIDELINES A PUBLIC SERVICE COMMISSION SPOKESMAN SAID A RULING ON GAS RATES ISN'T LIKELY FOR AT LEAST SEVERAL MONTHS I EXPECT TO GET GOOD TREATMENT SAID MR PATRYLO WE'RE TRYING TO REGAIN A PIECE OF THE MARKET THE COMMISSION LATE LAST YEAR TOOK UP THE BROADER ISSUE OF HOW UTILITIES WILL COMPETE WHEN CUSTOMERS BYPASS UTILITIES IT ISN'T EXPECTED TO MAKE ANY RULINGS UNTIL THE END OF THIS YEAR OR EARLY 1994 THE SPOKESMAN SAID 9308020161 930802 CANADA'S GDP RATE UNCHANGED OTTAWA CANADA'S GROSS DOMESTIC PRODUCT WAS UNCHANGED IN MAY FOLLOWING A 01 DECLINE IN APRIL STATISTICS CANADA SAID GROSS DOMESTIC PRODUCT IS THE TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES IN MAY PRODUCTION OF GOODS FELL 02 WHILE OUTPUT BY SERVICEPRODUCING INDUSTRIES ROSE 01 STATISTICS CANADA SAID THE TWOMONTH ECONOMIC SLOWDOWN COINCIDED WITH WEAK EMPLOYMENT GROWTH TORONTOBASED BURNS FRY LTD SAID CANADA'S ECONOMY SHOULD PICK UP IN THE SECOND HALF OF THE YEAR 9308020160 930802 MARKETING & MEDIA ADVERTISING OH BROTHER STAY TUNED FOR ADS FEATURING PRESIDENT CLINTON'S KIN BY KEVIN GOLDMAN DURING LAST TUESDAY'S LARRY KING LIVE ON CNN ROGER CLINTON WAS ASKED ABOUT HIS ROCK BAND NAMED POLITICS HIS FAMOUS HALFBROTHER THE PRESIDENT OF THE UNITED STATES AND HIS TELEVISION COMMERCIALS LIKE ANOTHER MUCHJOKEDABOUT BROTHER OF A PAST PRESIDENT REMEMBER BILLY BEER ROGER CLINTON IS BARGING ONTO CENTER STAGE WITH A PUBLIC CAREER THAT HE HOPES WILL INCLUDE THE ROLE OF PITCHMAN IN ADVERTISEMENTS THE 37YEAROLD MR CLINTON IS ALREADY APPEARING IN ADS FOR CABLE'S COMEDY CENTRAL AND HIS MANAGER BUTCH STONE SAYS THERE IS INTEREST FROM A NATIONAL MOTEL CHAIN AND A REGIONAL SOFT DRINK COMPANY FOR THE CURLYHAIRED OUTSPOKEN ROUGHAROUNDTHE EDGES FIRST BROTHER MR STONE SAYS HE IS SIMPLY WAITING ON THE PAPER WORK FROM THE MOTEL CHAIN WHICH HE DECLINES TO IDENTIFY OUT OF FEAR OF SQUELCHING THE DEAL ADVERTISERS OFTEN WILLING TO GO TO ANY LENGTHS TO GET NOTICED MAY NOT BE ABLE TO GET PRESIDENTS AS PITCHMEN BUT THEIR RELATIVES HAVE SOMETIMES BEEN AVAILABLE FORMER PRESIDENT CARTER'S BROTHER BILLY FOUND A BRIEF LIFE AS A PITCHMAN IN 1987 SEVEN YEARS AFTER HIS BROTHER LEFT OFFICE BILLY CARTER APPEARED IN A TELEVISION COMMERCIAL FOR DREYER'S GRAND LIGHT LOWFAT ICE CREAM INTRODUCED UNDER THE EDY'S BRAND I'D RATHER EAT THIS THAN BE PRESIDENT OF THE UNITED STATES MR CARTER SAID IN A SPOT THAT WAS INCLUDED IN A SERIES TITLED UNBELIEVABLE SPOKESMAN FOR AN UNBELIEVABLE PRODUCT BOTH RON REAGAN JR AND MICHAEL SONS OF FORMER PRESIDENT RONALD REAGAN ALSO APPEARED IN ADS RON FOR AMERICAN EXPRESS AND MICHAEL IN INFOMERCIALS ADVERTISING THE EUROTRIM DIET PATCH WHICH THE FEDERAL TRADE COMMISSION ORDERED OFF THE AIR FOR FALSE AND UNSUBSTANTIATED CLAIMS ALTHOUGH MR REAGAN WASN'T NAMED IN THE COMPLAINT BUT MR CLINTON IS DIFFERENT FROM MR CARTER OR THE REAGAN SONS AND CARRIES EVEN MORE RISK FOR A PRODUCT THAN ANY OF HIS FAMOUS PRESIDENTIAL RELATIVE PREDECESSORS MARKETING EXPERTS WONDER WHAT COMPANIES NO MATTER HOW SOCIALLY BENEVOLENT WOULD WANT THEIR PRODUCT ASSOCIATED WITH ROGER CLINTON AN INDIVIDUAL WHO WAS ARRESTED IN 1984 ON COCAINE TRAFFICKING IN A STING OPERATION APPROVED BY HIS BROTHER THE THENGOVERNOR OF ARKANSAS AND WHO SPENT A YEAR IN FEDERAL PRISON WELL HE IS A CELEBRATED FIGURE SAYS BRIAN DUBIN AN AGENT WITH THE WILLIAM MORRIS AGENCY WHICH WAS CONTACTED BY THE MOTEL CHAIN ABOUT MR CLINTON EVEN THOUGH THE AGENCY ISN'T HANDLING HIM ON AN EXCLUSIVE BASIS THE MOTEL CHAIN HAS ZEROED ON IN SOME OF ROGER CLINTON'S CHARACTERISTICS AND WISHES TO ALIGN ITSELF WITH THOSE THE CHAIN HAS SOMETHING IN MIND MR DUBIN DECLINES TO ELABORATE HAL ROSS PRESIDENT OF MAPES & ROSS A COMMUNICATIONS RESEARCH COMPANY WHICH WORKS WITH ADVERTISERS SAYS MR CLINTON DOES REPRESENT SOME RISK HE ISN'T KNOWN AS A GREAT WINNER AND HE MAY NOT BE THE BEST SPOKESMAN FOR THE GOLD CARD HE DOES REPRESENT A DOWNSCALE IMAGE YET MR ROSS SAYS HE CAN ENVISION AN AD CAMPAIGN FOR A MOTEL CHAIN STARRING MR CLINTON ROGER CLINTON COULD BE FILMED SAYS MR ROSS AT THE MOTEL'S ENTRANCE SAYING WHEN MY BROTHER TRAVELS HE GETS THE ROYAL TREATMENT AIR FORCE ONE SECRET SERVICE AN ENTOURAGE MY NEEDS ARE MUCH SIMPLER AND WHEN I TRAVEL I USE BRANDX' MOTEL MR ROSS SAYS THE ONLY WAY MR CLINTON COULD WORK IN ADS IS IF HUMOR SELFDEPRECATING HUMOR IS APPLIED COMEDY CENTRAL IN ONE OF ITS ADS FEATURES MR CLINTON SITTING UNDER AN AMERICAN FLAG HANGING BACKWARDS AND CUDDLING A STUFFED CAT WHO IS CLEARLY SUPPOSED TO RESEMBLE SOCKS THE FIRST CAT EARNESTLY STARING INTO THE CAMERA HE SAYS NO ISSUE WE FACE IS AS CHALLENGING THAN HEALTH CARE HE THEN ASKS US TO REMEMBER THAT LAUGHTER IS THE BEST MEDICINE AND TO WATCH THE ALLCOMEDY CHANNEL IT'S FAR LESS EXPENSIVE THAN A TRIP TO THE EMERGENCY ROOM HE CONCLUDES AND IT SMELLS BETTER TOO SO MUCH FOR A DIGNIFIED MESSAGE WE WERE IMPRESSED WITH HIS SENSE OF HUMOR AND WILLINGNESS TO GO ALONG WITH WHAT WE HAD PLANNED FOR HIM SAYS MITCH SEMEL COMEDY CENTRAL'S SENIOR VICE PRESIDENT OF PROGRAMMING ADDING MR CLINTON WAS PAID AN UNDISCLOSED FEE FOR THE COMMERCIALS ADVERTISING COULD BE THE SHOW BUSINESS BREAK MR CLINTON IS HOPING FOR HIS BAND POLITICS HAS YET TO BREAK THROUGH AND HIS MOVIE CAREER DOES NOT YET CARRY ANY HEAVYDUTY PARTS HE IS PLAYING MAYOR BUBBA IN A MOVIE TO BE RELEASED AROUND HALLOWEEN TITLED PUMPKIN HEAD II BLOOD WINGS AND HE IS PORTRAYING GINO A NOT TOO BRIGHT HULK OF A BRUTE WITH A SOFT SPOT ACCORDING TO TRIMARK PICTURES A UNIT OF TRIMARK HOLDINGS INC IN ITS MOVIE NATIONAL LAMPOON'S LAST RESORT MR STONE MR CLINTON'S MANAGER IS OPTIMISTIC ABOUT HIS CLIENT'S FUTURE IN ADS THERE IS NO QUESTION HE WILL MAKE IT IN MOVIES IN SINGING AND IN COMMERCIALS WE WILL CAREFULLY CHOOSE THE PRODUCTS TO MAIN TAIN OUR CREDIBILITY HE WILL PREDICTS MR STONE MAKE MONEY AT COMMERCIALS NEW YORK AGENCY MESSNER VETERE BERGER MCNAMEE SCHMETTERER A UNIT OF EURO RSCG SAID IT IS SHUTTING DOWN ITS PITTSBURGH OFFICE WITH 27 EMPLOYEES AND BILLINGS OF 21 MILLION LOUISE MCNAMEE AGENCY PRESIDENT SAID ABOUT A THIRD OF THE EMPLOYEES WERE OFFERED JOBS AT THE AGENCY'S NEW YORK HEADQUARTERS AS FOR THE AGENCY'S FOUR PITTSBURGH ACCOUNTS NESTLE SA'S STOUFFER FROZEN FOODS ALCOA ALUMINUM PRODUCTS DAP CAULKS AND SEALANTS AND MILES INC MS MCNAMEE SAID THE AGENCY HAS OFFERED TO SERVICE THEM OUT OF NEW YORK MESSNER'S PITTSBURGH OFFICE WAS ONCE PART OF THE OLD DELLA FEMINA MCNAMEE AGENCY WHICH EURO RSCG THE FRENCH PARENT MERGED WITH MESSNER VETERE BERGER CAREY SCHMETTERER LAST YEAR COMPUTER ACCOUNT PACKARD BELL ELECTRONICS INC THE CLOSELY HELD CHATSWORTH CALIF COMPUTER MAKER HIRED LOS ANGELES AGENCY STEIN ROBAIRE HELM TO CREATE A NATIONAL TELEVISION AND PRINT AD CAMPAIGN THE MOVE FOLLOWS PACKARD'S SALE IN JUNE OF A 20 STAKE TO ZENITH DATA SYSTEMS A UNIT OF FRANCE'S CIE DES MACHINES BULL IN AN ALLIANCE UNDER WHIH PACKARD WILL BEGIN OFFERING NOTEBOOKSIZE COMPUTERS THE CAMPAIGN IS SET FOR THE FOURTH QUARTER MEADE ULLMAN ADVERTISING OF AGOURA HILLS CALIF PREVIOUSLY HELD THE ACCOUNT RESIGNATION AMMIRATI & PURIS OF NEW YORK SAID IT RESIGNED FROM THE WEDGWOOD CHINA ACCOUNT WHICH BILLED LESS THAN 2 MILLION LAST YEAR OFFICIALS AT WATERFORD WEDGWOOD USA A UNIT OF WATERFORD GLASS GROUP PLC COULDN'T BE REACHED OMNICOM GROUP'S ALTSCHILLERREITZFELD OF NEW YORK HANDLES THE WATERFORD ACCOUNT 9308020159 930802 EXPRESIDENT OF QUAD PHARMACEUTICAL FINED FOR INSIDER TRADING NEW YORK THE FORMER PRESIDENT OF GENERICDRUG MAKER QUAD PHARMACEUTICAL INC WAS ORDERED TO PAY A 119000 FINE STEMMING FROM INSIDERTRADING CHARGES A FEDERAL JUDGE IN MANHATTAN FOUND THAT DILIP P SHAH SOLD 11000 SHARES OF QUAD'S PARENT COMPANY PAR PHARMACEUTICAL INC SHORTLY BEFORE AN OCT 21 1988 ANNOUNCEMENT THAT PAR WAS THE TARGET OF A GRAND JURY INVESTIGATION THE 119000 REPRESENTS THE AMOUNT THAT MR SHAH AVOIDED LOSING MINUS BROKERAGE COMMISSIONS BY SELLING THE SHARES WHEN HE DID AS PART OF THE COURT PROCEEDINGS MR SHAH CONCEDED THAT HE VIOLATED INSIDERTRADING LAW THE CIVIL CASE WAS BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION US DISTRICT JUDGE ROBERT P PATTERSON JR DECLINED THE SEC'S REQUEST FOR A STIFFER PENALTY SAYING CRIMINAL AND REGULATORY PENALTIES ALREADY ADMINISTERED WOULD DETER MR SHAH FROM COMMITING FUTURE CRIMES THE JUDGE ALSO DECLINED TO BAR MR SHAH FROM EVER SERVING AS AN OFFICER OR DIRECTOR OF A PUBLIC COMPANY A STIPULATION ALSO SOUGHT BY THE SEC PAR WAS ONE OF SEVERAL COMPANIES INVOLVED IN A LATE1980S FOOD AND DRUG ADMINISTRATION INVESTIGATION OF THE GENERICDRUG INDUSTRY IN 1990 PAR AND QUAD WERE FINED 150000 AND 250000 RESPECTIVELY RESULTING FROM ILLEGAL PAYMENTS MADE TO FDA OFFICIALS WHEN MR SHAH WAS PRESIDENT MR SHAH WAS SENTENCED TO 60 DAYS IN JAIL AND FINED 125000 IN CONNECTION WITH THOSE ACTIVITIES HE ALSO WAS A DEFENDANT IN TWO RELATED CIVIL SUITS ONE WAS SETTLED THE SECOND WAS DISMISSED AND IS UNDER APPEAL PAR IS NOW UNDER NEW MANAGEMENT AS A UNIT OF PHARMACEUTICAL RESOURCES INC SPRING VALLEY NY DEBORAH J JEFFREY A LAWYER IN WASHINGTON FOR MR SHAH WASN'T AVAILABLE FOR COMMENT RICHARD WALKER THE REGIONAL SEC ADMINISTRATOR IN NEW YORK SAID THE AGENCY WAS GENERALLY PLEASED WITH THE DECISION BUT NOTED THE SEC WOULD HAVE PREFERRED HARSHER PENALTIES 9308020158 930802 TECHNOLOGY MOTOROLA COMPLETES THE FIRST ROUND OF FUNDING FOR SATELLITEPHONE PROJECT BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC COMPLETED THE FIRST ROUND OF EQUITY FINANCING FOR ITS 34 BILLION IRIDIUM SATELLITEPHONE PROJECT WITH AN UNDISCLOSED NUMBER OF GROUPS OR CORPORATIONS COMMITTING 800 MILLION A PARTICIPANT IN THE NEGOTIATIONS SAID THE INVESTORS INCLUDE A JAPANESE CONSORTIUM COMPRISING DAINI DENDEN DDI KYOCERA CORP SONY CORP MITSUBISHI CORP MITSUI & CO AND SOME REGIONAL CELLULARPHONE OPERATORS AMONG OTHERS SPRINT CORP THE US LONGDISTANCE CARRIER BCE MOBILE A UNIT OF BCE INC THE CANADIAN TELECOMMUNICATIONS COMPANY AND ITALY'S TELEPHONE HOLDING COMPANY MOTOROLA WILL RETAIN A STAKE THAT WILL EVENTUALLY DECLINE TO 15 AS OTHER INVESTORS JOIN SOME COMPANIES SUCH AS BRAZIL'S TELECOMMUNICATIONS COMPANY HAVEN'T INVESTED BECAUSE OF DELAYS IN SECURING GOVERNMENT APPROVAL THE PARTICIPANT SAID THE IRIDIUM INVESTORS PLAN TO COMMIT ANOTHER 800 MILLION OF EQUITY TO THE PROJECT IN ABOUT TWO YEARS WITH THE REMAINDER OF THE COST FINANCED WITH DEBT MOTOROLA RECENTLY DISCLOSED THAT BEIJING'S CHINA GREAT WALL INDUSTRY CORP WILL PROVIDE LAUNCH ROCKETS FOR SOME OF THE SATELLITES IN ADDITION TO RUSSIA'S KHRUNICHEV ENTERPRISE AND MCDONNELL DOUGLAS CORP IN THE US THE IRIDIUM PROJECT IS CONTROVERSIAL BECAUSE OF ITS SIZE AND AMBITION IF COMPLETED IT WOULD BE THE LARGEST PRIVATE AEROSPACE PROGRAM OF ANY KIND IN ADDITION TO THE 34 BILLION COST OF LAUNCHING THE NETWORK MOTOROLA IS EXPECTED TO RECEIVE A FIVEYEAR SERVICE AND MAINTENANCE CONTRACT OF NEARLY 3 BILLION OTHER SUBCONTRACTORS INCLUDE LOCKHEED CORP RAYTHEON CO SCIENTIFICATLANTA INC MARTIN MARIETTA CORP AND SIEMENS AG OF GERMANY THE CONSORTIUM PLANS TO PROVIDE WIRELESS SERVICE WORLDWIDE WITH A NETWORK OF 66 SATELLITES WHICH WILL CARRY VOICE OR DATA SIGNALS TO AND FROM RECEIVERS THAT ARE SLIGHTLY LARGER AND HEAVIER THAN MOTOROLA'S CURRENT CELLULAR PHONES THE PROJECT IS FAR MORE EXPENSIVE THAN COMPETING PLANS OF SEVERAL OTHER AEROSPACE OR SATELLITECOMMUNICATIONS COMPANIES BECAUSE IT PROVIDES A SIGNAL STRONG ENOUGH TO ALLOW THE USE OF SUCH SMALL HANDHELD PHONES AND A SATELLITE NETWORK SO EXTENSIVE THAT LINKS WITH LANDBASED TELECOMMUNICATIONS SYSTEMS AREN'T REQUIRED THE PHONES ARE EXPECTED TO INITIALLY COST ABOUT 3000 EACH AND SERVICE ABOUT 3 A MINUTE CRITICS ASSERT THAT THE SERVICE IS TOO EXPENSIVE THAT NATIONAL CELLULARPHONE NETWORKS WILL EVENTUALLY SATISFY CUSTOMERS' DEMAND FOR MOBILITY AND THAT IRIDIUM WILL THEREFORE CRASH FINANCIALLY BUT MOTOROLA WHICH IS BASED IN SCHAUMBURG ILL CONTENDS THAT THE CONVENIENCE OF THE IRIDIUM PHONE'S SEAMLESS SERVICE WILL ATTRACT ENOUGH INITIAL USERS FOR WHOM COST ISN'T A CONCERNAFFLUENT BUSINESSMEN GOVERNMENT BUREAUCRATS MILITARY PERSONNEL AND THE LIKE OR WHO TRAVEL INTERNATIONALLY OR WORK IN LESSDEVELOPED COUNTRIES IRIDIUM'S BUSINESS PLAN ASSUMES ABOUT 1 OF CELLULAR PHONE USERS WORLDWIDE OR ABOUT ONE MILLION BY THE YEAR 2000 WILL BUY ITS INITIAL SERVICE WITH THE CUSTOMER BASE EXPANDING AFTER THAT AS THE COST OF THE PHONES AND SERVICE FALLS IRIDIUM MUST ALSO WIN REGULATORY APPROVAL IN THE US AND MANY OTHER COUNTRIES THE FEDERAL COMMUNICATIONS COMMISSION IS EXPECTED TO SELECT TWO OR THREE SATELLITEPHONE OPERATORS TO PROVIDE THE SERVICE SOMETIME NEXT YEAR IF APPROVED IRIDIUM PLANS TO LAUNCH TEST SATELLITES IN 1996 AND HAVE THE FULL NETWORK OPERATIONAL IN 1998 IT WOULD LAUNCH AN AVERAGE OF ONE SATELLITE A MONTH THEREAFTER TO EXPAND THE SYSTEM AND REPLACE OTHER SATELLITES 9308020157 930802 WHO'S NEWS DIED EWING KAUFFMAN 76 FOUNDER OF MARION LABORATORIES INC AND OWNER OF THE KANSAS CITY ROYALS BASEBALL CLUB OF BONE CANCER 9308020156 930802 ROSTY'S WORLD BY IRIS KRASNOW DAN ROSTENKOWSKI FACES THE POSSIBILITY OF INDICTMENT IN A HOUSE POSTOFFICE SCANDAL YET THE KEY TO KNOWING THE 18TERM CONGRESSMAN FROM CHICAGO'S NORTHWEST SIDE ISN'T WHETHER HE'S GUILTY OR INNOCENT OF SKIMMING 21000 FROM A MAILROOM CASH BOX IT IS KNOWING THAT IN THE HARDBALL CHICAGO WORLD HE COMES FROM SWAPPING STAMPS FOR CASH WOULD BE CONSIDERED A CUB SCOUT PRANK TO UNDERSTAND DAN ROSTENKOWSKI IT HELPS TO TAKE A STEP BACK AND LOOK AT THE CITY THAT CREATED HIM TODAY CHICAGO IS A RELATIVELY TAME PLACE BUT YEARS AGO IT WAS THE TOWN WHERE A CITY COUNCIL FINANCE COMMITTEE CHAIRMAN WENT TO JAIL FOR BRIBERY WHERE A FORMER GOVERNOR OTTO KERNER WENT DOWN IN A RACETRACK SCANDAL WHERE UMPTEEN ALDERMEN HAVE GOTTEN NAILED WHERE FAVORS AMONG FRIENDS WERE EXPECTED IF YOU CAN'T HELP YOUR FRIENDS AND YOUR FAMILY WHO CAN YOU HELP THE CITY'S LEGEND OF A MAYOR RICHARD J DALEY WAS KNOWN TO ASK THE POLITICAL FRAMEWORK FOR THE CHICAGO MACHINE WAS THE OLD WARD SYSTEM CHICAGO HAD 50 ALDERMEN BUT THE REAL POWER LAY WITH THE COOK COUNTY DEMOCRATIC PARTY WHOSE WARD COMMITTEEMEN REPORTED DIRECTLY TO THE BOSS DALEY WITH THE AID OF HIS MACHINE DALEY RULED CHICAGO AS CONFIDENTLY AS A COMMUNIST DICTATOR UNTIL HIS DEATH IN 1976 YOUNG ROSTY'S TRAINING IN THE WAYS OF THE WARD STARTED EARLY BORN 65 YEARS AGO HE WAS THE ONLY SON OF BIG JOE RUSTY A LONGTIME ALDERMAN AND DEMOCRATIC WARD COMMITTEEMAN BIG JOE WAS PART OF THE TWOFISTEDDRINKING PADDY BAUERPARKY CULLERTON PACK A POWERFUL POLITICAL CLIQUE AS THE SON OF A WARD BOSS YOUNG ROSTENKOWSKI WAS STEEPED EARLY ON IN THE FILTH THAT WAS PART OF A CHICAGO POLITICIAN'S LIFE HE WAS 10 YEARS OLD WHEN TWO OF HIS FATHER'S PRECINCT CAPTAINS WERE MURDERED AND THEIR BODIES DUMPED IN A CAR PARKED IN FRONT OF HIS FATHER'S DOORSTEP IN A GROUNDFLOOR TAVERN LOCATED IN THEIR HOUSE THE RANGY PRETEEN DAN BECAME ADEPT AT WORKING A CROWD AMONG THE GANG IN HIS WORKINGCLASS NEIGHBORHOOD HE WAS ALWAYS THE LEADER DURING HIS SENIOR YEAR AT ST JOHN'S MILITARY ACADEMY IN DELAFIELD WIS HE WON AN UNPRECEDENTED 14 LETTERS IN SPORTS AND WAS VOTED MOST POPULAR AND RUNNERUP AS MOST CONCEITED THE BOYS FROM THE BOSS'S WORLD SPOTTED ROSTY'S POLITICAL TALENT EARLY AFTER A BLOODLESS TOUR OF DUTY IN KOREA HE WAS LOOKED OVER BY THE PHILADELPHIA ATHLETICS AS A POTENTIAL RECRUIT BUT HIS FATHER HAD OTHER IDEAS SO AT THE AGE OF 24 ROSTY ENTERED A FIELD HIS DAD FELT HELD MORE PROMISE HE BECAME THE YOUNGEST MEMBER OF THE ILLINOIS STATE LEGISLATURE TWO YEARS LATER IN 1954 HE WAS ELECTED TO THE STATE SENATE WHEN AN AILING THOMAS GORDON THE LONGTIME DEMOCRATIC CONGRESSMAN FOR THE CITY'S EIGHTH DISTRICT DECIDED TO PULL OUT OF POLITICS IN 1958 DAN ROSTENKOWSKI MOVED IN BUOYED BY MAYOR DALEY AT 30 HE BECAME THE YOUNGEST MEMBER OF THE 86TH CONGRESS AND THE MAYOR'S MAN IN WASHINGTON WHILE SERVING HIS CONSTITUENTS AS CONGRESSMAN ROSTY ALSO SERVED HIS CHICAGO BOSS AS WARD COMMITTEEMAN THE LATE MAYOR DALEY EAGERLY AWAITED FRIDAYS THE DAY ROSTY WOULD BRIEF HIM IN MY DAD'S EYE DAN WAS ALWAYS THE POINT PERSON FOR THE CITY REMEMBERS THE MAYOR'S THIRD SON WILLIAM DALEY A CHICAGO LAWYER AND POLITICAL ADVISER MR ROSTENKOWSKI LEARNED FROM HIS MENTOR THE ART OF COMPROMISE RELENTLESSNESS AND THE IMPORTANCE OF LOYALTY CHICAGO LESSONS HELPED ROSTY TACKLE WASHINGTON HIS ASCENT STARTED IN 1964 WHEN HE REPLACED THOMAS O'BRIEN ANOTHER DALEY MAN ON THE WAYS AND MEANS COMMITTEE THE MOST INFLUENTIAL COMMITTEE IN ALL OF CONGRESS THREE YEARS LATER HE WAS ELECTED CHAIRMAN OF THE DEMOCRATIC CAUCUS IN THE HOUSE WHICH THRUST HIM INTO THE CENTER OF AN EXCLUSIVE CIRCLE OF HOUSE LEADERSHIP THAT INCLUDED HALE BOGGS AND TIP O'NEILL ONLY 38 AT THE TIME HE WAS ALREADY A CONFIDANT OF PRESIDENT JOHNSON'S SOON HE WAS BEING TOUTED AS A FUTURE SPEAKER OF THE HOUSE MR ROSTENKOWSKI'S REPUTATION GREW AS A MASTER BUILDER OF COALITIONS A DOER A FIXIT MAN THROUGHOUT HIS RISE ROSTY'S MACHINE BACKGROUND SHOWED THROUGH AT THE DEMOCRATIC NATIONAL CONVENTION IN 1968 THE 6FOOT2 ROSTY TOOK THE GAVEL FROM THE ELFIN HOUSE MAJORITY LEADER CARL ALBERT TO MANAGE AN UNRULY CROWD OF VIETNAM PROTESTERS THE LORE IS THAT BIG ROSTY WRESTED THE GAVEL AWAY FROM MR ALBERT MR ALBERT INSISTED HE GAVE IT TO HIM IN ANY CASE MR ALBERT PAID ROSTY BACK FOR THE HUMILIATION BY BLOCKING HIS ASCENT ON THE HILL AT VARIOUS POINTS BUT ROSTY IS A CHICAGO GUY THAT IS A SURVIVOR IN 1980 WHEN HE HAD A CHANCE TO MOVE TOWARD THE CHIEF WHIP POSITION HE SHOCKED PUNDITS AND COLLEAGUES BY CHOOSING THE WAYS AND MEANS CHAIRMANSHIP INSTEAD HE WAS NO FOOLWHIPS MAY INFLUENCE VOTES BUT WAYS AND MEANS CHAIRMEN CRAFT AMERICA'S MAJOR LAWS AND CONTROL MANY BILLIONS OF DOLLARS THROUGHOUT HIS YEARS IN WASHINGTON THE CONGRESSMAN HAS REMAINED A STAUNCH CHICAGOAN HE SETS HIS WATCH ON CHICAGO TIME AND HIS PRIMARY RESIDENCE REMAINS HIS REDBRICK BOYHOOD HOME BUILT BY HIS POLISH GRANDFATHER ON CHICAGO'S NORTHWEST SIDE IN 34 YEARS OF BEING IN OFFICE HE BOASTS HE HAS SPENT ONLY TWO DOZEN WEEKENDS IN WASHINGTON CHICAGOSTYLE HE HAS PRACTICED PATRONAGE AND DANCED AROUND MANY A SCANDAL ALTHOUGH SCANDAL HAS YET TO BRING HIM DOWN HE WAS CAUGHT DRIVING DRUNK AFTER HIS 40TH HIGHSCHOOL REUNION IN WISCONSIN AND WHOOPING IT UP IN BARBADOS ON LOBBYISTS' MONEY AND IMMORTALIZED IN HUMILIATING TELEVISION FOOTAGE SPRINTING AWAY FROM SOME LITTLE OLD LADIES IN HIS DISTRICT WHO WANTED TO CONFRONT HIM OVER A SOCIAL SECURITY SURTAX PERHAPS THE MOST SERIOUS MARK ON HIS RECORD IS HIS ROLE IN PRESIDENTIAL TOWERS A 2346UNIT APARTMENT COMPLEX HE EXPEDITED IN CHICAGO'S WEST LOOP THROUGH A TAX BREAK FOR DEVELOPER FRIENDS ROSTY HAS IN FACT OUTGROWN THE BIG CITY THAT SHAPED HIM BOSS DALEY WOULD HAVE BEEN WOWED BY HIS PROTEGE'S MONUMENTAL PERFORMANCE SINCE THE CONGRESSMAN TOOK OVER WAYS AND MEANS HIS COMMITTEE HAS SAVED SOCIAL SECURITY REWORKED AMERICA'S TRADE LAWS AND REFORMED THE WELFARE SYSTEM IN 1986 HE PULLED OFF HIS MOST NOTABLE COUP MR ROSTENKOWSKI WAS THE PRIMARY FORCE IN OVERHAULING THE TAX CODE FOR THE FIRST TIME IN 30 YEARS HE CROSSED SWORDS WITH RONALD REAGAN AND CAME AWAY VICTORIOUS NEXT CAME GOLF AND LUNCHES WITH GEORGE BUSH NOW ANOTHER PRESIDENT APPEARS TO BE SMITTEN BY THE CHICAGO FIXER WHILE THE HOUSE POSTOFFICE SCANDAL WAS DOMINATING THE HEADLINES PRESIDENT CLINTON POLITICALLY EMBRACED MR ROSTENKOWSKI AT A RECENT WHITE HOUSE LUNCHEON HE STOOD BY HIS MAN AGAIN AT A DEMOCRATIC NATIONAL COMMITTEE FUNDRAISER LAST WEEK IN CHICAGO CALLING HIM THE MOST IMPORTANT PERSON IN MY POLITICAL PARTY PRESIDENT CLINTON A NEW DEMOCRAT EVEN SLIPPED INTO OLD DEMOCRAT LANGUAGE IN DESCRIBING ROSTY HE CALLED HIM A VERY SPECIAL FRIEND AN ALLIANCE WITH MR ROSTENKOWSKI IS ESSENTIAL TO MAKING PRESIDENT CLINTON'S TAX AND HEALTH REFORMS LAW UNDER THE BOSS'S SON RICHARD M DALEY CHICAGO THESE DAYS IS A MUCH CALMER CITY CHICAGOANS HAVE TWO VIEWS OF THEIR POWERFUL REPRESENTATIVE SOME ARE PROUD OF THEIR WORKINGCLASS HERO OTHERS SEE HIM AS AN OLD HACK AND WHEELERDEALER EVERYBODY VALUES THE FACT THAT HE TAKES CARE OF HIS OWN A DALEY TRADITION HE HELPS KEEP THE MONEY FLOWING FOR DEEP TUNNEL THE UNDERGROUND RIVER SYSTEM THAT FLUSHES OUT CHICAGO SEWERS AND STORM OVERFLOW IT WAS MR ROSTENKOWSKI WHO ALONG WITH REP BILL LIPINSKI AND FORMER SECRETARY OF TRANSPORTATION SAM SKINNER PUSHED THROUGH A CHANGE IN FEDERAL LAW THAT PULLED IN 90 MILLION IN REVENUES FOR THE CITY TO FIX UP ITS AIRPORTS AT ONE POINT THE CONGRESSMAN ALSO EXTRACTED 8 MILLION IN SEED MONEY FOR LOYOLA UNIVERSITY TO BUILD A NEW BUSINESS SCHOOL AND BECAUSE OF SPECIAL ROSTYENGINEERED TAX PROVISIONS THE CITY'S NAVY PIER WAS EXPANDED AND THE NEW WHITE SOX STADIUM WAS BUILT A YEAR AND A HALF AGO IN AN INTERVIEW I SPOKE WITH THE CONGRESSMAN ABOUT THE FOCUS ON ETHICS IN THE NEW WASHINGTON I THINK IT'S A TOTAL IMPOSITION TO VIEW MY PRIVATE LIFE AND MAKE A JUDGMENT ABOUT IT HE RAILED I NOW HAVE TO FILL OUT ALL THESE ETHICS STATEMENTS AND DISCLOSURE FORMS SAYING I WAS HERE ON THIS DAY AND I GOT BACK THIS WAY AND I'M CRIMINALLY LIABLE FOR THIS YEAH THAT'S WHAT IT HAS COME TO WHAT DO I WANT TO BE DOING THIS KIND OF STUFF FOR STILL IT'S TOUGH TO IMAGINE THAT THE ISSUE OF 21000 WILL BE THE END OF DAN ROSTENKOWSKI MS KRASNOW PROFILED MR ROSTENKOWSKI FOR CHICAGO MAGAZINE WHERE MUCH OF THIS MATERIAL FIRST APPEARED 9308020155 930802 AFTER THE FLOOD BY J DUNCAN MOORE JR KANSAS CITY MO WHEN THE MIDWEST FLOODING STARTED MORE WEEKS AGO THAN ANYONE CAN NOW REMEMBER IT WAS SOMEONE ELSE'S PROBLEM AND THEREFORE OF SOMEWHAT ABSTRACT INTEREST HERE ANYONE FOOL ENOUGH TO LIVE IN THE MISSISSIPPI RIVER FLOOD PLAIN OR WORSE ST LOUIS DESERVED WHAT THEY GOT THEN ON JULY 10 A THUNDERSTORM DUMPED EIGHT INCHES ON SOME PARTS OF KANSAS CITY TRIGGERING A FLASH FLOOD PEOPLE WERE TAKEN BY SURPRISE HOW COULD SUCH A THING HAPPEN HERE AND WHY HADN'T THE AUTHORITIES ALERTED THEM RESIDENTS OF THE A1 TRAILER PARK IN KANSAS CITY KAN LYING LOW IN THE KANSAS RIVER BOTTOMS HAD TO TRUDGE THROUGH KNEEDEEP MUDDY WATER TO ESCAPE THAT SATURDAY MORNING WHY HADN'T ANYBODY TOLD THEM THEY COMPLAINED BITTERLY THAT THE RIVER COULD RISE SO FAST WHY IF THEY'D BEEN WARNED THEY COULD HAVE GOTTEN THEIR WORK CLOTHES AND TELEVISIONS OUT I SPENT A MORNING REPORTING AND TALKING TO THESE PEOPLE NO ONE I TALKED TO EXPRESSED GRATITUDE THAT EVERYONE CAME THROUGH ALIVE AND IN ONE PIECE NO ONE THANKED THE POLICE AND NATIONAL GUARD FOR SECURING THE AREA AGAINST LOOTERS AND AGAINST THOSE WHO WOULD ENDANGER THEIR OWN LIVES BY TRYING TO GET BACK INTO THEIR HOMES ON THE CONTRARY THEY NEARLY LYNCHED THE POOR POLICE SERGEANT WHO CAME TO THE RED CROSS SHELTER TO TELL THEM THAT FOR OBVIOUS SAFETY REASONS THEY WOULDN'T BE ALLOWED BACK INTO THEIR HOMES FOR SEVERAL DAYS SOMEHOW THEY FELT THEY SHOULD HAVE BEEN INSULATED FROM THE DISASTER THAT BEFELL THEM TO THEIR SHOCK THEY WEREN'T NATURAL CATASTROPHE REVEALS HUMAN NATURE IN ALL ITS PARTICULARITY IT SHOWS OUR NEED TO FIX BLAME SOMEWHERE ANYWHERE IT ALSO SHOWS OUR NATURAL ENERGY AND INGENUITY FOR EVERY ANGRY TRAILERPARK DWELLER THERE MUST BE HALF A DOZEN VOLUNTEERS SANDBAGGING AGAINST THE RISING RIVER DOING THEIR PART TO KEEP NATURE AT BAY CATASTROPHES LIKE THIS ALSO REMIND THE REST OF US WHY WE LIVE ON THE HIGH GROUND WHY FOR INSTANCE THE SKYSCRAPERS OF DOWNTOWN KANSAS CITY SPROUT FROM THE TOP OF A BLUFF INSTEAD OF THE LOWLANDS NEAR THE CONFLUENCE OF THE KANSAS AND MISSOURI RIVERS WHERE THE PIONEERS SETTLED THE TOWN OF KANSAS 150ODD YEARS AGO IN THE WEEKS SINCE I'VE WATCHED MY FELLOW MIDWESTERNERS COPE WITH THE DISASTER I'VE NOTED TOO THAT HUMAN ENDEAVOR IS BUILT ON A FOUNDATION OF OPTIMISM NEVER MORE SO THAN WHERE THE POTENTIAL OF DISASTER IS TIED TO THE SOIL HUMAN NATURE RATIONALIZES AWAY THE RISK I CAN BUILD MY HOUSE ON THE COAST OF FLORIDA BECAUSE A HURRICANE ISN'T LIKELY TO LAND THERE ANY TIME SOON I CAN BUILD MY HOUSE NEAR THE SAN ANDREAS FAULT BECAUSE THE EARTHQUAKE'S EPICENTER WILL PROBABLY BE HUNDREDS OF MILES AWAY AND I CAN LOCATE MY FACTORY IN THE MISSOURI RIVER FLOOD PLAIN BECAUSE THE ARMY CORPS OF ENGINEERS HAS THOUGHTFULLY PROVIDED STURDY LEVEES TO KEEP THE RIVER IN LINE AND PROTECT MY INVESTMENT AND BESIDES A 100YEAR FLOOD HAPPENS ONLY ONCE A CENTURY I SHOULD LIVE SO LONG ONE OF THE LITTLE FACTS WE HAVE LEARNED THESE PAST WEEKS IS THAT THE TERM 100YEAR FLOOD DOESN'T MEAN IT HAPPENS ONCE EVERY HUNDRED YEARS IT MEANS THE CHANCES OF A FLOOD THIS YEAR ARE ONEIN100 EVERY YEAR TO AMELIORATE THAT RISK THE FEDERAL GOVERNMENT RUNS THE NATIONAL FLOOD INSURANCE PROGRAM CREATED IN THE 1960S AFTER RUINOUS FLOODS SWEPT THE MISSISSIPPI VALLEY THE PROGRAM TODAY IS DRASTICALLY UNDERSUBSCRIBED HARDLY ANYONE CARRIES THE INSURANCE BECAUSE IT IS SO EXPENSIVE ONLY THOSE WHO LIVE IN FLOOD PLAINS WILL PAY FOR IT SO THE RISK POOL IS SMALL IN THIS INSTANCE AS USUAL THE FEDERAL GOVERNMENT WILL SOCIALIZE THE LOSSES THE HOUSE LAST WEEK PASSED 3 BILLION IN EMERGENCY RELIEF WITHOUT NEEDLESS TO SAY FINDING OTHER AREAS OF SPENDING TO CUT HOUSE MAJORITY LEADER RICHARD GEPHARDT A ST LOUISAN THOUGHT IT INADVISABLE TO STOP EVERYTHING AND GO THROUGH THE BUDGET PROCESS NOT WHEN PEOPLE ARE LEAVING THEIR HOMES AND PUTTING UP SANDBAGS IN OTHER WORDS JUST ADD IT TO THE DEFICIT HERE'S A MODEST PROPOSAL THE FEDS CAN MAIL OUT DISASTER ASSISTANCE CHECKS AS ALWAYS ONLY THIS TIME THE PAYEES' ENDORSEMENTS COMMIT THEM TO PAY PREMIUMS FOR FLOOD INSURANCE WELL SURPRISE SURPRISE THAT'S HOW IT WORKS ALREADY VERY OFTEN THE PREMIUM PAYMENT IS DEDUCTED FROM THE GRANT CHECK SAYS HUGH STRAWN DIRECTOR OF CATASTROPHE SERVICES AT THE PROPERTY LOSS RESEARCH BUREAU IN SCHAUMBURG ILL THE DIFFICULTY COMES AT RENEWAL TIME MR STRAWN CONTINUES THE POLICY CAN BE ALLOWED TO LAPSE IF YOU HAVE SOMEBODY WHO TAKES THE COVERAGE FOR A YEAR LETS IT LAPSE THEN SOMETIME LATER THERE'S ANOTHER FLOOD YOU'RE RIGHT BACK WHERE YOU STARTED FROM IT'S A GOOD IDEA BUT APPARENTLY THERE'S SOME PROBLEM WITH ENFORCEMENT BUT NO MATTER THE GOVERNMENT WILL PICK UP THE TAB AS IT HAPPENS THE ECONOMIC IMPACT WON'T BE AS GREAT AS MANY THINK AT LEAST NOT IN THIS REGION THE MISSISSIPPI VALLEY IS ANOTHER STORY THE FEDERAL RESERVE BANK OF KANSAS CITY ESTIMATES THAT DISRUPTION OVERALL HAS BEEN MINIMAL EXCEPT TO THE TRANSPORTATION INDUSTRY FARMERS IN THE BOTTOM LANDS AND THOSE FLOODED OUT MOST PEOPLE IN KANSAS CITY LIVE FAR FROM THE RIVERS AND THEIR DAILY LIVES HAVE HARDLY BEEN AFFECTED MAYBE THEY HAVE TO CROSS A DIFFERENT RIVER BRIDGE TO GET TO WORK COMPUTERS STILL HUM IN THE OFFICE PARKS WATER FLOWS CLEAR FROM THE TAPS YET ON MONDAY WHEN KANSAS CITIANS AWOKE TO DISCOVER HOW CLOSE TO THE PRECIPICE WE'D COME A PERVERSE FASCINATION GRIPPED THE CITY PEOPLE ASSEMBLED AROUND TV SETS TO GAWK AT PILES OF SANDBAGS THE RIVER HAD SHOVED ASIDE THE WEATHER FORECAST ASSUMED A FATEFUL IMPORTANCE THOUSANDS GATHERED AWESTRUCK IN A DOWNTOWN PARK TO WITNESS THE WATER LAPPING AGAINST THE RIM OF ITS BOWL SO HIGH THAT IF YOU WALKED ALONG THE LEVEE'S CROWN YOU COULD REACH DOWN AND TOUCH IT WE EXISTED FOR TWO LONG DAYS IN A SORT OF BINARY CONDITION OF SHARED RISK EITHER THE LEVEES HELD AND LIFE CONTINUED AS USUAL OR THEY FAILED AND WE LOST AUTO PLANTS AIRPORTS WAREHOUSES STREETS HOMES AND JOBS JUST ONE MORE RAINSTORM WOULD HAVE OVERTOPPED THE DIKES AND KNOCKED OUT THE CITY WATER SUPPLY DOING TO US WHAT WAS DONE TO DES MOINES AT MANY MORE TIMES THE COST BUT MERCIFUL PROVIDENCE HAVING TAKEN US ALL THE WAY TO THE BRINK SENT BLUE SKIES OUR WAY THIS TIME KANSAS CITY WON THE ROULETTE WHEEL STOPPED ONE NUMBER SHORT BY LAST WEEK AT LEAST ONE MAN FROM THE A1 TRAILER PARK HAD GOTTEN THE MESSAGE PATRICK MCWILLIAMS WHO RETURNED TO HIS TRAILER ONLY TO BE SENT PACKING AGAIN BY A SECOND MUCH HIGHER WALL OF WATER VOWED HE WOULD NEVER GO BACK YOU REALIZE THERE'S A HISTORICAL PERSPECTIVE ON THESE THINGS HE TOLD THE KANSAS CITY STAR IT HAPPENS ABOUT EVERY 40 YEARS IT'S A RISK YOU TAKE WHEN YOU LIVE ALONG THE RIVER MAYBE IT'S NOT FOLLY TO BUILD IN A FLOOD PLAIN THERE ARE GOOD REASONS TO FARM THERE THE SOIL IS VERY RICH BUT LIKE LIVING IN FLORIDA OR CALIFORNIA LIVING HERE MEANS THE POTENTIAL FOR LOSS IS ALWAYS PRESENT ONE DAY OUR NUMBER WILL COME UP MR MOORE IS A JOURNALIST IN KANSAS CITY MO 9308020154 930802 TECHNOLOGY TANDY IN PACT WITH CREDITORS FORT WORTH TEXAS TANDY CORP REACHED AGREEMENT WITH CREDITORS OF INTERTAN INC TO ACQUIRE ALL OF THE BARRIE ONTARIO CONCERN'S DEBT AT A DISCOUNT TANDY HAS AGREED TO RESTRUCTURE INTERTAN'S DEBT AND KEEP THE FIRM FROM CLOSING AFTER INTERTAN'S BANKS DEMANDED REPAYMENT OF 54 MILLION IN LOANS AND STOPPED CLEARING THE COMPANY'S CHECKS INTERTAN WAS SPUN OFF IN 1986 FROM TANDY INTERTAN OPERATES 2450 RADIO SHACK AND TANDY STORES OVERSEAS AND IS TANDY'S BIGGEST CUSTOMER 9308020153 930802 MOVING TARGET BID TO NARROW DEFICIT IS SHAPING UP AS GAME OVER POLITICAL NUMBERS AS CLINTON CALLS FOR CHANGE SPECIFIC GOALS TO REDUCE RED INK SPLIT CONGRESS SHARED SACRIFICE' FORGOTTEN BY DAVID WESSEL AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AS AN INDEPENDENT ECONOMIST ALICE RIVLIN ENDORSED A PLAN TO INCREASE THE FEDERAL GASOLINE TAX BY 1 A GALLON IT WOULD HAVE RAISED 100 BILLION A YEAR WHEN FULLY PHASED IN BY FEBRUARY MS RIVLIN THEN DEPUTY WHITE HOUSE BUDGET DIRECTOR WAS PROMOTING PRESIDENT CLINTON'S BROADBASED ENERGY TAX IT WOULD HAVE RAISED 23 BILLION A YEAR BY THE FIFTH YEAR TODAY MS RIVLIN ALONG WITH THE REST OF THE CLINTON TEAM IS HOPING THAT CONGRESS WILL PASS A BILL TO INCREASE THE GASOLINE TAX BY 43 CENTS A GALLON THAT WOULD YIELD LESS THAN 5 BILLION A YEAR SO GOES WASHINGTON'S WAR AGAINST THE FEDERAL DEFICIT SUPPORT FOR REDUCING IT IS BROAD BUT OPPOSITION TO ANY SPECIFIC SPENDING CUT OR TAX INCREASE IS OFTEN INTENSE THE MESSAGE THAT WE'RE GETTING FROM MOST OF OUR COLLEAGUES SAYS DAN ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE IS THAT WE NEED A BIG DEFICITREDUCTION NUMBER IT'S VERY DIFFICULT TO DO THAT PARTICULARLY WHEN THEY WON'T GIVE YOU MORE THAN 43 CENTS IN ENERGY REVENUES AFTER A WEEKEND BREAK HOUSE AND SENATE LEADERS HOPE THE CONFERENCE COMMITTEE WILL FINISH WORK ON A DEFICITREDUCTION PLAN BY TOMORROW THAT CAN BE PUT TO A VOTE IN TIME FOR CONGRESS TO START ITS SUMMER RECESS AT WEEK'S END WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID YESTERDAY HE WAS VERY CONFIDENT THAT WOULD HAPPEN BUT SOME OTHERS WERE TALKING OF A NEED TO DELAY THE START OF THE VACATION WITH REPUBLICANS UNITED IN OPPOSITION EACH DEMOCRAT IN THE SENATE HAS A NEAR VETO SEN DAVID BOREN THE OKLAHOMA DEMOCRAT WHO VOTED FOR THE BILL WHEN IT PASSED THE SENATE ON A TIE BROKEN BY VICE PRESIDENT ALBERT GORE ANNOUNCED YESTERDAY THAT HE WON'T VOTE FOR THE HOUSESENATE COMPROMISE AS IT IS SHAPING UP BECAUSE IT DOESN'T DEMAND ENOUGH SACRIFICE FROM THE ELDERLY AND OTHERS WHO RECEIVE FEDERAL BENEFITS TO COMPENSATE DEMOCRATIC LEADER GEORGE MITCHELL MUST TURN AROUND ONE OF THE SIX DEMOCRATS WHO VOTED AGAINST THE SENATE BILL HE HASN'T YET SUCCEEDED PRESIDENT CLINTON IS TRYING TO PUT THE PRESSURE ON HE TENTATIVELY SCHEDULED A SPEECH FROM THE OVAL OFFICE FOR TOMORROW NIGHT AND OVER THE WEEKEND APPEARED IN THE WHITE HOUSE ROSE GARDEN TO URGE SUPPORT FOR THE ASYETUNCOMPLETED PLAN IT'S TIME FOR CONGRESS TO PASS THIS PLAN HE SAID SATURDAY IT'S TIME FOR WASHINGTON TO SHOW THE COURAGE TO CHANGE BUT ON CAPITOL HILL THE POLITICS OF CHANGE IS GIVING WAY TO THE POLITICS OF THE STATUS QUOAND THE END PRODUCT IS IN DOUBT IF MR CLINTON SUCCEEDS HE WILL CLAIM INDEED HE ALREADY HAS THE LARGEST DEFICIT REDUCTION PLAN IN OUR NATION'S HISTORY THAT SHRINKS THE PROJECTED DEFICIT BY ALMOST 500 BILLION OVER FIVE YEARS DESPITE SUCH CLAIMS THE COMPROMISE FALLS SHORT OF THAT GOAL AND OVER THE WEEKEND SEN MITCHELL WAS PUSHING A NEW ACCOUNTING DEVICE TO REACH THE TARGET THE PENDING COMPROMISE WOULD HOWEVER CONTAIN WHAT OTHERWISE WOULD BE A BIG SWELLING IN THE DEFICIT IF THIS IS THE BEST YOU CAN DO YOU SHOULD DO IT BUT YOU KNOW IT'S A HOLDING ACTION SAYS CAROL COX WAIT PRESIDENT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET A NONPROFIT BUSINESSBACKED WATCHDOG GROUP AT THIS POINT A HOLDING ACTION LOOKS LIKE THE BEST OUTCOME IF MR CLINTON ACCEPTS SUGGESTIONS BY SEN BOREN AND INDEPENDENT ROSS PEROT TO TEAR UP THE PLAN AND START ALL OVER HISTORY SUGGESTS THAT A SMALLER DEFICITREDUCTION PACKAGE WOULD BE THE RESULT MEMBERS OF CONGRESS AREN'T LIKELY TO BE ANY MORE WILLING TO VOTE FOR UNPOPULAR TAX INCREASES OR SPENDING CUTS AFTER AN AUGUST RECESS FULL OF COMPLAINTS FROM CONSTITUENTS AND INTEREST GROUPS ALL THE TALK OF SHARED SACRIFICE HAS EVAPORATED IN THE PAST SEVERAL WEEKS NEGOTIATIONS NEARLY DISSOLVED LAST WEEK AMID BICKERING OVER ADDING TWO PENNIES TO THE GASOLINE TAX A DIFFERENCE OF ABOUT 15 A YEAR TO THE TYPICAL MOTORIST AGRICULTURE COMMITTEES ARE STILL LABORING TO FIGURE OUT HOW MUCH TO INCREASE SPENDING ON FOOD STAMPS AND THE DRIVE TO CHOP THE DEFICIT BY 500 BILLION FROM WHAT IT WOULD OTHERWISE BE HAS LED TO SQUABBLES THAT DEFINE SUCCESS EVEN IF ACHIEVED WITH ACCOUNTING GIMMICKS AS 496 BILLION AND FAILURE AS 492 BILLION AN INCONSEQUENTIAL DIFFERENCE TO EVERYONE EXCEPT A FEW PIVOTAL MEMBERS OF CONGRESS SIX MONTHS FROM NOW NO ONE IS GOING TO REMEMBER WHETHER IT'S 492 OR 496 OR 500 SAYS TREASURY SECRETARY LLOYD BENTSEN NO ONE SEEMS TO RECALL THAT MR CLINTON'S INITIAL PLAN BY HIS ARITHMETIC WOULD HAVE REDUCED THE DEFICIT BY 473 BILLION IN A TRILLIONDOLLAR FEDERAL BUDGET WHERE FIVEYEAR DEFICITS ARE INFLUENCED BY EVERYTHING FROM ECONOMIC GROWTH TO THE WEATHER DIFFERENCES OF A FEW BILLION DOLLARS ARE MEANINGLESS ALTHOUGH THE MAJOR BUILDING BLOCKS OF THE BILL ARE IN PLACE VEXING DETAILS REMAIN UNSETTLED THEY RANGE FROM THE PAROCHIAL WHETHER TO IMPOSE A MORATORIUM ON USE OF BOVINE GROWTH HORMONE WHICH MAKES COWS PRODUCE MORE MILK TO THE POLITICALLY SENSITIVE JUST HOW MANY UPPERINCOME SOCIAL SECURITY BENEFICIARIES SHOULD HAVE TO PAY HIGHER TAXES TO WRANGLING OVER PROPOSALS THAT ACTUALLY WIDEN THE DEFICIT HOW BIG A TAX BREAK TO GIVE SMALL BUSINESSES THAT BUY NEW MACHINES NONETHELESS THE OUTLINES OF THE HOUSESENATE CONFERENCE COMMITTEE COMPROMISE WHICH MR CLINTON HOPEFULLY DESCRIBED AS A FINAL VERSION OF AN ECONOMIC GROWTH PLAN SEEM CLEAR THE PLAN SHARPLY RAISES INCOMETAX RATES FOR THE RICHEST AMERICANS AND ONLY NICKS THE MIDDLE CLASS WITH A GASOLINETAX INCREASE THAT AMOUNTS TO ABOUT 30 A YEAR PER MOTORIST IT SETS STRICT CEILINGS ON CONGRESSIONAL APPROPRIATIONS THAT WILL FORCE CONTINUED CUTS IN DEFENSE SPENDING AND ATTEMPTS TO RESTRAIN FEDERAL HEALTHCARE SPENDING BY PAYING HOSPITALS AND DOCTORS LESS FOR TREATING THE ELDERLY AND THE POOR MEASURED AGAINST THE SIZE OF THE ECONOMY IT ISN'T THE BIGGEST DEFICITREDUCTION PACKAGE IN HISTORY SAYS RUDOLPH PENNER A FORMER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE IT'S A GOOD STEP IT'S A SMALL STEP HE SAYS BUT IT ISN'T NEARLY ENOUGH TO TAME THE DEFICIT IN THE LONG TERM AND FOR ALL THE RHETORIC IN CONGRESS THE CUTS THAT MAKE UP THE EMERGING COMPROMISE PROBABLY WON'T CUT THE DEFICIT OVER THE LONG RUN AS MUCH AS THE PRESIDENT'S ORIGINAL ENERGY TAX WOULD HAVE INDEED BARRING MAJOR LASTMINUTE CHANGES THE COMPROMISE RELIES ON ACCOUNTING TRICKS TO COME WITHIN THE BALLPARK OF MAKING THE FIVEYEAR DEFICIT 500 BILLION SMALLER FOR EXAMPLE THE ADMINISTRATION AND ITS ALLIES IN CONGRESS DOUBLECOUNT 44 BILLION OF SPENDING CUTS THAT BOTH PARTIES TOOK CREDIT FOR BACK IN THE 1990 BUDGET DEAL DEMOCRATS ALSO CLAIM 164 BILLION IN FUTURE SAVINGS FROM THE TREASURY'S PLAN TO SHIFT ITS BORROWING TO LOWERCOST SHORTTERM DEBT EVEN THOUGH THE TREASURY NOW EXPECTS TO SAVE LESS THAN 11 BILLION FROM THE SWITCH AND THE CONGRESSIONAL BUDGET OFFICE SEES LESS THAN 7 BILLION IN SAVINGS THE ESTIMATES ALSO INCLUDE ABOUT 9 BILLION IN SAVINGS BY PRETENDING THAT A HANDFUL OF TAX BREAKS ARE TEMPORARY WHEN EVERYONE EXPECTS THEM TO BE PERMANENT SEN MITCHELL WANTS TO FORGO THE RIGHT TO SPEND 43 BILLION THAT THE WHITE HOUSE BUDGET OFFICE SAYS CONGRESS COULD HAVE SPENT UNDER THE RULES OF THE 1990 BUDGET LAW BUT HASN'TAND COUNT THAT TOWARD THE TOTAL WHILE INSISTING ON HITTING THE SYMBOLICALLY IMPORTANT TARGET NEGOTIATORS ARE EVEN WILLING TO DO THINGS THAT WIDEN THE DEFICIT IN THE FUTURE BECAUSE NO ONE IS REQUIRED TO LOOK BEYOND THE NEXT FIVE YEARS THEY IGNORE THE REVENUES EXPECTED TO BE LOST IN LATER YEARS BECAUSE OF TAX BREAKS SUCH AS A CAPITALGAINS TAX CUT FOR INVESTORS IN CERTAIN SMALL COMPANIES WHO HOLD THEIR SHARES FOR FIVE YEARS DERIDING THE FIVEYEAR TARGET AS RIDICULOUS BROOKINGS INSTITUTION ECONOMIST BARRY BOSWORTH A FORMER ECONOMIC ADVISER TO PRESIDENT CARTER SAYS WHAT YOU REALLY WANT TO DO IS CHANGE THE LONGRUN TREND MR BOSWORTH THINKS IT FOOLISH TO INCREASE INCOMETAX RATES RETROACTIVELY JUST TO GET THE FIVEYEAR TALLY UP THE FACT THAT YOU HAVE COLLECTED SOME EXTRA MONEY THIS YEAR DOESN'T MATTER IF ANYTHING IT HURTS THE ECONOMY HE SAYS TO GET CLOSER TO THE 500 BILLION GOAL NEGOTIATORS ARE NOW POISED TO MAKE THE FULL INCOMETAX INCREASES RETROACTIVE TO JAN 1 ABANDONING A SENATE PROPOSAL TO PHASE THEM IN DESPITE A FLURRY OF PARTISAN ARGUMENTS OVER NUMBERS THERE IS A SURPRISING CONSENSUS AMONG BUDGET ANALYSTS FROM BOTH PARTIES THAT PROVIDED THE ECONOMY COOPERATES AND THE RICH DON'T SUCCEED IN EVADING THE TAX INCREASES AIMED AT THEM THE EXPECTED COMPROMISE IS LIKELY TO PUSH THE DEFICIT DOWN TO ROUGHLY 210 BILLION OR PERHAPS A BIT LOWER IN THE FISCAL YEAR THAT ENDS SEPT 30 1997 THAT IS ROUGHLY EQUIVALENT TO 27 OF GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE NATION THAT YEAR THIS YEAR'S DEFICIT IS EXPECTED TO BE ABOUT 285 BILLION OR ABOUT 45 OF A SMALLER GDP UNFORTUNATELY THAT ISN'T ENOUGH TO SATISFY MOST ECONOMISTS AND MANY POLITICIANS INCLUDING MR PEROT ON NBC'S MEET THE PRESS YESTERDAY MR PEROT DERIDED THE EXPECTED COMPROMISE AS A BLUEPRINT FOR A BRIDGE THAT ONLY GOES HALFWAY ACROSS THE RIVER AND SAID IT DIDN'T CUT SPENDING SUFFICIENTLY BUT HE REFUSED TO GIVE ANY DETAILS ON HOW HE WOULD ACHIEVE THE SAVINGS IN FEDERAL HEALTHCARE SPENDING ON WHICH HIS OWN PLAN RESTS NOR WOULD HE SAY HOW HE WOULD AMEND HIS OWN PLAN TO GET THE ADDITIONAL 425 BILLION IN DEFICIT REDUCTION NEEDED TO BALANCE THE BUDGET BY 1998 OBVIOUSLY HE ADDS TO THE PROBLEM TREASURY SECRETARY BENTSEN SAID IN A TELEPHONE INTERVIEW WHICH IS A BIT INCREDIBLE WHEN HE WAS TALKING ABOUT A 50CENTAGALLON INCREASE IN THE GAS TAX AND HE WAS TALKING ABOUT MUCH MORE IN TAXES THAN THE PRESIDENT MUCH OF THE PUBLIC REMAINS SKEPTICAL THAT THE PROMISED DEFICIT REDUCTION WILL BE ACHIEVED IN A RECENT WALL STREET JOURNAL/NBC NEWS POLL 57 OF THOSE SURVEYED SAID THEY EXPECT THE DEFICIT TO NARROW EITHER A LITTLE OR A LOT IF THE CLINTONBACKED PLAN PASSES BUT 15 SAID THEY DON'T EXPECT IT TO SHRINK AT ALL AND ANOTHER 23 SAID IT WILL GROW WITH THE DEGREE OF CYNICISM YOU HAVE TOWARD WASHINGTON IT'S BEEN VERY DIFFICULT TO HAVE THE FACTS OUT THERE AND HAVE THEM UNDERSTOOD MR BENTSEN SAYS AS IMPORTANT AS PUBLIC OPINION IS THE FINANCIAL MARKETS ARE EVEN MORE CRUCIAL SINCE THE PRESIDENT IS COUNTING ON A CREDIBLE DEFICITREDUCTION PLAN TO KEEP INTEREST RATES LOW WHICH WOULD OFFSET THE EFFECTS OF TAX INCREASES AND SPENDING CUTS WITH INTEREST RATES LOWER THAN THEY HAVE BEEN FOR TWO DECADES THE BOND MARKET SEEMS RELATIVELY POSITIVE BUT THIS APPARENT CONFIDENCE COULD SLIP IF THE BICKERING DRAGS ON FOR THOSE WHO WANT A HEFTIER CUT IN THE DEFICIT THE PRESIDENT HAS A READY ANSWER IF YOU WANT TO GET THIS DEFICIT DOWN THE NEXT THING IS TO BRING HEALTHCARE COSTS DOWN THE PROBLEM IS THAT THE EMERGING PLAN FOR OVERHAULING THE NATION'S HEALTH SYSTEM MAY CURB FEDERAL HEALTH COSTS EVENTUALLY BUT IT ISN'T EXPECTED TO SHRINK THE HEALTH BILL ANYTIME SOON BUT IN THE END THE FAR BIGGER HURDLE HAS BEEN THE RELUCTANCE OF CONGRESS TO ASK THE MIDDLE CLASS TO CONTRIBUTE MUCH OF ANYTHING TO DEFICIT REDUCTION THE TREASURY FIGURES THAT MR CLINTON'S ORIGINAL ENERGY TAX WOULD HAVE COST MIDDLECLASS FAMILIES NO MORE THAN 150 A YEAR THE GAS TAX WOULD BE ABOUT A FIFTH OF THAT THE ENERGY TAX WAS THE ONE TAX THAT EVERY AMERICAN WAS GOING TO PAY SAYS MR BOSWORTH THE THEME WAS THAT EVERYONE WOULD HAVE TO MAKE SOME SACRIFICE WITH DISPROPORTIONATE SACRIFICE BY THE WEALTHY NOW WE'RE BACK IN THE CRUDE POLITICAL ARGUMENT EVERYBODY DOESN'T HAVE TO PAY THAT'S THE WRONG MESSAGE TO SEND ON ANY LONGTERM BASIS THE POLITICAL RACES NEXT YEAR ARE PART OF BOTH PARTIES' THINKING TWENTYONE DEMOCRATIC SENATE SEATS HAVE TO BE DEFENDED NEXT YEAR ALL HOUSE DEMOCRATS ARE UP FOR REELECTION INCLUDING A LARGE NUMBER OF VULNERABLE FRESHMEN MANY OF WHOM CAMPAIGNED FOR A MIDDLECLASS TAX CUT JUST AS MR CLINTON HIMSELF DID IRONICALLY THE MIDDLE CLASS MAY NOT ACTUALLY BE GETTING THE MESSAGE THAT IT WAS LET OFF THE HOOK IN THE JOURNAL POLL 85 OF THOSE WITH INCOMES BETWEEN 20000 AND 50000 SAID IT IS LIKELY THAT THEIR PERSONALINCOME TAXES WILL GO UP IF MR CLINTON'S PLAN PASSES ACTUALLY UNDER HIS PROPOSAL AND EVERY ITERATION OF IT SINCE THEIR INCOME TAXES WON'T RISE AT ALL 9308020152 930802 WHO'S NEWS NOBLE DRILLING CORP NOBLE DRILLING CORP HOUSTON BM THOMPSON WHO RECENTLY RETIRED AS VICE CHAIRMAN OF PHILLIPS PETROLEUM CO WAS ELECTED A DIRECTOR OF THIS DRILLING CONTRACTOR INCREASING THE BOARD TO SEVEN MEMBERS 9308020151 930802 WHO'S NEWS AVEMCO CORP AVEMCO CORP FREDERICK MD JOHN F SHETTLE JR 38 YEARS OLD WAS ELECTED A DIRECTOR OF THIS AVIATION AND MARINE INSURANCE COMPANY SUCCEEDING FREDERICK M GLASS WHO DIED IN JUNE MR SHETTLE IS EXECUTIVE VICE PRESIDENT OF AVEMCO 9308020150 930802 WHO'S NEWS BERTUCCI INC BERTUCCI'S INC WOBURN MASS JOHN SMITH FORMERLY SENIOR VICE PRESIDENT OF MARRIOT CORP WAS NAMED TO THE NEW POST OF CHIEF FINANCIAL OFFICER BERTUCCI'S IS A RESTAURANT CONCERN BERTUCCI'S INC NAMED JOHN SMITH CHIEF OPERATING OFFICER NOT CHIEF FINANCIAL OFFICER AS WAS INCORRECTLY STATED IN AN ARTICLE YESTERDAY 9308020149 930802 WHO'S NEWS DANSKIN INC DANSKIN INC NEW YORK THIS MAKER OF WOMEN'S EXERCISE APPAREL AND HOSIERY ELECTED HOWARD D COOLEY 59 YEARS OLD A DIRECTOR SUCCEEDING MICHAEL SAYRES 70 WHO RETIRED MR COOLEY IS A RETIRED PRESIDENT OF JOCKEY INTERNATIONAL INC 9308020148 930802 WHO'S NEWS SOFTIMAGE INC SOFTIMAGE INC MONTREAL PETER CROMBIE 46 YEARS OLD WAS APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPUTERANIMATION SOFTWARE COMPANY THE POSITION IS NEW MR CROMBIE PREVIOUSLY HAS HELD EXECUTIVE POSITIONS WITH SEVERAL TECHNOLOGY CONCERNS 9308020147 930802 WHO'S NEWS HEXCEL OUSTS WITT AS CHIEF EXECUTIVE FORMS NEW POSTS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL PLEASANTON CALIF HEXCEL CORP OUSTED ITS CHAIRMAN AND CHIEF EXECUTIVE ROBERT L WITT AFTER ITS BOARD OBJECTED TO THE PACE AND DIRECTION OF MR WITT'S EFFORT TO RESTRUCTURE THE COMPANY HEXCEL IS ONE OF A NUMBER OF AEROSPACE AND DEFENSE CONTRACTORS STRUGGLING TO ADAPT TO THE POSTCOLD WAR WORLD IT MAKES SPECIAL COMPOSITES RESINS AND OTHER MATERIALS USED BY THE MILITARY AND BY AEROSPACE COMPANIES IT HAS BEEN CLOBBERED BY THE SHARP CUTBACKS IN MILITARY SPENDING TWO WEEKS AGO IT REPORTED A NET LOSS FOR THE FIRST HALF OF 1 MILLION OR 14 CENTS A SHARE INCLUDING A GAIN OF 45 MILLION FROM AN ACCOUNTING CHANGE MR WITT 51 YEARS OLD HAD BEEN WITH HEXCEL MORE THAN 20 YEARS AND HAD HELD THE TWO TOP POSTS FOR ABOUT EIGHT YEARS HE COULDN'T BE REACHED TO COMMENT FOR MANY QUARTERS HE HAD BEEN TRYING TO STREAMLINE THE COMPANY AND STEER IT INTO NEW NONMILITARY MARKETS IN A WRITTEN STATEMENT THE COMPANY MENTIONED NO REASON FOR MR WITT'S OUSTER HOWEVER JOHN F O'FLAHERTY A SPOKESMAN SAID MR WITT WAS ASKED TO STEP DOWN OVER PHILOSOPHICAL DIFFERENCES WITH THE BOARD ABOUT THE COMPANY'S COURSE AND THE SPEED OF ITS RESTRUCTURING HE DECLINED TO GIVE ANY DETAILS OF THOSE DIFFERENCES HEXCEL SAID JOHN J LEE 56 A DIRECTOR OF THE COMPANY WILL NOW SERVE AS HEXCEL'S CHAIRMAN AND COCHIEF EXECUTIVE JOHN L DOYLE 61 ALSO A DIRECTOR WAS ALSO NAMED COCHIEF EXECUTIVE THE COMPANY SAID IT WILL FORM AN OFFICE OF THE CHIEF EXECUTIVE COMPOSED OF MR LEE MR DOYLE AND HEXCEL'S CURRENT PRESIDENT AND CHIEF OPERATING OFFICER DONALD J O'MARA MR LEE WHO WAS NAMED A HEXCEL DIRECTOR JUST THREE MONTHS AGO IS A CONSULTANT WHOSE FORMER CORPORATE POSTS INCLUDE STINTS AS PRESIDENT OF TOSCO CORP AND AS AN EXECUTIVE VICE PRESIDENT AT SALOMON INC MR DOYLE IS A CONSULTANT WHOSE MAIN CORPORATE EXPERIENCE COMES FROM HEWLETTPACKARD CO WHERE HE SPENT 34 YEARS AND WOUND UP AS AN EXECUTIVE VICE PRESIDENT HEADING THE COMPUTER GIANT'S WORLDWIDE BUSINESS DEVELOPMENT OPERATIONS MR DOYLE HAS BEEN ON THE HEXCEL BOARD SINCE 1974 IN TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY HEXCEL CLOSED AT 975 UNCHANGED IN EARLY 1990 THE STOCK TRADED AT AROUND 19 A SHARE 9308020146 930802 LITTON NOTE CONVERSION BEVERLY HILLS CALIF LITTON INDUSTRIES INC SAID IT COMPLETED THE REDEMPTION OF ITS 1 BILLION ZEROCOUPON CONVERTIBLE SUBORDINATED NOTES DUE 2010 LITTON SAID THAT 998 OF THE NOTES WERE CONVERTED INTO 6114401 COMMON SHARES OR ABOUT 156 OF LITTON'S 393 MILLION COMMON SHARES OUTSTANDING ON MAY 31 HOLDERS WHO DIDN'T CONVERT THEIR SHARES PRIOR TO THE JUNE 28 EXPIRATION DATE WILL RECEIVE 32011 PER 1000 OF NOTES LITTON HAS INTERESTS IN RESOURCE EXPLORATION SERVICES INDUSTRIAL AUTOMATION SYSTEMS AND ADVANCED ELECTRONIC AND DEFENSE SYSTEMS 9308020145 930802 LEISURE & ARTS HOLLYWOOD ON THE SPREE BY DEBRA JO IMMERGUT BERLIN ASKED FOR A MINERAL WATER BEFORE A RECENT SHOWING OF FRITZ LANG'S CLASSIC 1926 SILENT FILM METROPOLIS THE WEARYLOOKING PROPRIETOR TICKET TAKER AND REFRESHMENT PEDDLER OF THE TINY REPERTORY CINEMA BERLINER KINOMUSEUM RIFLED THROUGH THE PILES OF OLD NEWSPAPERS AND PEERED BEHIND AN OLD UPRIGHT PIANO IN THE CRAMPED LOBBY HAVING COAXED A HALFFULL LITER OF WATER FROM ITS HIDING PLACE THE LONGHAIRED MAN OF ABOUT 60 HANDED HIS CUSTOMER A GRIMEENCRUSTED GLASS AND GRUMBLED YOU'LL HAVE TO RINSE THIS OUT IN THE BATHROOM FIRST THE BEMUSED MOVIEGOER CARRIED THE GLASS OFF FOR A WASHING SHRUGGING GOODNATUREDLY SUCH EXPERIENCES ARE TO BE EXPECTED IN THE QUIRKY WORLD OF BERLIN'S KLEINKINOS THE POSTAGESTAMPSIZED CINEMAS THAT CATER TO THIS CITY'S UNSLAKEABLE THIRST FOR OLD MOVIES AND ART MOVIES PERHAPS 25 KLEINKINOS OR SMALL CINEMAS ARE SPRINKLED ACROSS BERLIN RUNNING PROGRAMS DEFIANTLY DIFFERENT FROM THOSE AT THE INCREASINGLY COMMON AMERICANSTYLE MULTIPLEX THEATERS BUT AFICIONADOS OF THE SMALL IDIOSYNCRATIC CINEMAS FEAR THAT THE ADVENT OF THE MULTISCREEN THEATER AND THE ESCALATING RENTS IN THIS RAPIDLY CHANGING CITY ARE THREATENING THE EXISTENCE OF THE ART HOUSES WITH THE WALL DOWN THE WIND IS RAW SAYS KARIN MARQUARD HEAD OF THE FILM DEPARTMENT AT THE BERLIN OFFICE OF CULTURAL AFFAIRS SOME OF THESE FLOWERS WON'T SURVIVE ONE OLD FAVORITE THAT HAS SUCCUMBED TO THE CHILL BREEZES IS THE FILMKUNST 66 THEATER IN THE CITY'S CHARLOTTENBURG DISTRICT IT WAS JUST TORN DOWN TO MAKE WAY FOR AN OFFICE BUILDING HAVING NURTURED THE HOUSE SINCE 1971 ITS FILMOBSESSED OWNER FRANZ STADLER WAS DETERMINED THAT THE THEATER MAKE A GRAND EXIT WITH FINANCIAL HELP FROM THE CITY HE STAGED AN ENCYCLOPEDIC PROGRAM OF CLASSIC ANIMATION FROM DAFFY DUCK AND FOGHORN LEGHORN TO THE LORD OF THE RINGS AND EROTICA ONE RECENT SUNDAY THE LAST CANDY BARS WERE SOLD THE LAST CARTOONS WERE SCREENED AND MR STADLER'S THEATER BECAME ANOTHER BIT OF BERLIN FILM HISTORY THAT HISTORY IS ILLUSTRIOUS AND LONG BEGINNING WITH THE WORLD'S FIRST MOVIE SCREENING WHICH TOOK PLACE IN THE WINTERGARTEN CABARET ON NOV 1 1895 TWO MONTHS BEFORE THE LUMIERE BROTHERS' FAMED PARIS SCREENING AND OF COURSE THE CITY HAS A GLAMOROUS PAST AS A FILMPRODUCTION CENTER THE HOLLYWOOD OF DEUTSCHLAND WHERE MARLENE DIETRICH AND BILLY WILDER BEGAN THEIR CAREERS AND WHERE FILMSCHOOL STAPLES SUCH AS METROPOLIS FW MURNAU'S NOSFERATU AND ROBERT WIENE'S THE CABINET OF DR CALIGARI WERE FILMED DURING FOUR DECADES OF ISOLATION BERLIN FELL BEHIND THE TIMES AND OUT OF THE FILMINDUSTRY LOOP NOWADAYS CITY CULTURAL OFFICIALS ARE ATTEMPTING TO REVIVE THE CITY'S MORIBUND SHOWBIZ GLAMOUR AND TO ATTRACT LUCRATIVE FILM PRODUCTIONS THE GREAT STUDIOS IN BABELSBURG WHICH LANGUISHED FOR DECADES AFTER FALLING INTO EAST GERMAN TERRITORY WERE SOLD BY THE GOVERNMENT LAST YEAR TO A FRENCH CONGLOMERATE FOR RENOVATION IN MAY CITY OFFICIALS RENTED SPACE ABOVE A BAR DURING THE FILM FESTIVAL AT CANNES AND HANDED OUT CANVAS BAGS AND MODLOOKING WATCHES EMBLAZONED WITH THEIR NEW LOGO A MOBIUS STRIP THAT SYMBOLIZES THE INFINITE VARIETY OF LOCATIONS FROM BAROQUE PALACES TO SOCIALISTSTYLE APARTMENT BLOCKS TO BE FOUND IN BERLIN AND THE SURROUNDING STATE OF BRANDENBURG IN THE FALL THEY PLAN TO OFFER US FILMMAKERS JUNKETS TO BERLIN COMPLETE WITH HELICOPTER FLIGHTS AND VISITS TO TECHNICAL FACILITIES ACROSS THE CITY TO PROMOTE BERLIN AS A FILM LOCATION AND PROVIDE SERVICES TO VISITING PRODUCTIONS THE CITY HAS ALSO BEEN WORKING WITH THE STATE OF BRANDENBURG TO FOUND A CENTRAL FILM BOARD AFTER MANY DELAYS OFFICIALS HOPE IT WILL BE FORMED LATER THIS YEAR FOR NOW MS MARQUARD'S OFFICE HAS BEEN HANDLING EVERYTHING INCLUDING REASSURING THE NERVOUS CARETAKERS OF THE FORMER ROYAL PALACES IN CHARLOTTENBURG AND POTSDAM WHERE A TELEVISION MINISERIES ON THE LIFE OF RUSSIAN EMPRESS CATHERINE THE GREAT WILL SOON BE FILMED THE EMPRESS'S LEGENDARY FONDNESS FOR ANIMALS HAS ALREADY CREATED SOME PROBLEMS THE LANDMARKSTATUS FURNISHINGS IN THE PALACES THE SILK TAPESTRIES ARE EXTREMELY FRAGILE AND YOU HAVE DOGS RUNNING AROUND IN THERE SAYS MS MARQUARD THINGS GET DAMAGED THOUGH THIS MINISERIES AND THE FEATURE FILMS TENTATIVELY SLATED FOR SHOOTING IN THE COMING MONTHS THE LATTER INCLUDING NEVERENDING STORY III AND ANNIE II MAY NOT HAVE THE STAYING POWER OF METROPOLIS THEY DO CREATE JOBS FOR BERLIN'S HUNDREDS OF WELLTRAINED AND UNDEREMPLOYED FILM TECHNICIANS AND OFFER HOPE THAT BERLIN WILL ONCE AGAIN BE A MOVIEMAKING TOWN WHILE THE CITY BUREAUCRATS TRY TO ATTRACT HOLLYWOOD DOLLARS BERLIN'S SERIOUS FILMGOERS WILL CONTINUE TO GATHER IN PLACES LIKE THE CAMERA KINO AND CAFE TUCKED IN THE BOWELS OF A CITY ARTS CENTER WITH ITS GRAY CONCRETE WALLS AND LOW CEILINGS THE CAMERA IS MORE LIKE A PRISON CELL BLOCK THAN A MOVIE THEATER BUT THAT DIDN'T DETER THE RESPECTABLESIZED CROWD THAT TURNED UP ONE RECENT EVENING TO TAKE IN PEDRO ALMODOVAR'S TIE ME UP TIE ME DOWN THE FILM WAS SCHEDULED FOR 9 PM AT ABOUT 905 THE THEATER WAS STILL LOCKED WE ARE WAITING FOR PETRA EXPLAINED THE TICKET SELLER PETRA IT TURNED OUT WAS THE PROJECTIONIST AND KEEPER OF THE KEYS SHE APPEARED AROUND 915 UNLOCKED THE DOOR AND THE CROWD STREAMED IN HAPPILY IN EXCHANGE FOR AN EVERCHANGING MENU OF FILM RARITIES A RETROSPECTIVE OF THE WORK OF RUSSIAN FILMMAKER ANDREI TARKOVSKY A FESTIVAL OF JAPANESE SCIENCE FICTION ONE MUST BE WILLING TO SACRIFICE CERTAIN CREATURE COMFORTS REFRESHMENTS RANGE FROM HOMEMADE PRETZELS TO THAT OLD STANDBY MINERAL WATER IN A DIRTY GLASS THOSE ACCUSTOMED TO PLUSH VELOUR SEATS MUST MAKE DO WITH REDBRICK BLEACHERS IN THE SPUTNIK SUDSTERN WHILE A BROKENDOWN SOFA WITH A BLANKET TOSSED OVER IT IS OFFERED TO LATECOMERS AT THE KINOMUSEUM AND THEN THERE IS THE EISZEIT ICE AGE KINO ON THE FOURTH FLOOR OF AN OLD FACTORY BUILDING IN THE KREUZBERG DISTRICT OF THE CITY THERE SEATS ARE OPTIONAL THE METAL FOLDING CHAIRS PROVIDED BY THE THEATER'S YOUNG FILMFANATIC OWNERS ARE SO UNCOMFORTABLE THAT MOVIEGOERS SIMPLY PUSH THEM ASIDE AND STRETCH OUT ON THE FLOOR MS IMMERGUT IS A WRITER IN BERLIN 9308020144 930802 IRISH RETAIL SALES FELL IN MAY DUBLIN RETAIL SALES IN IRELAND FELL A PROVISIONAL 16 IN MAY FROM APRIL AND WERE DOWN 01 FROM A YEAR EARLIER THE CENTRAL STATISTICS OFFICE SAID THE LATEST MONTHTOMONTH DECLINE IN THE VALUE OF RETAIL SALES COMPARES WITH A REVISED RISE OF 22 IN APRIL FROM MARCH THE APRIL FIGURE WAS ORIGINALLY REPORTED AS A 36 RISE 9308020142 930802 GE CLAIMS VICTORY IN SUIT ALLEGING THEFT OF DIAMOND SECRETS FAIRFIELD CONN GENERAL ELECTRIC CO SAID IT WON A LAWSUIT AGAINST SOUTH KOREA'S ILJIN CORP ALLEGING THEFT OF TRADE SECRETS FOR MAKING INDUSTRIAL DIAMONDS THE SUIT WAS PROMPTED BY A GENERAL ELECTRIC INVESTIGATION IN 1989 OF CHIENMIN SUNG A FORMER GE RESEARCH SCIENTIST WHO PLEADED GUILTY IN 1990 TO CHARGES OF STEALING TRADE SECRETS FROM GE RELATED TO MAKING SYNTHETIC DIAMONDS MR SUNG WAS THE SUBJECT OF A 1990 PAGE ONE STORY IN THE WALL STREET JOURNAL ABOUT INDUSTRIAL ESPIONAGE SYNTHETIC DIAMONDS ARE USED IN MANY INDUSTRIAL PROCESSES SUCH AS CUTTING STONE FINISHING METAL AND DRILLING OIL WELLS GE CHARGED IN THE CASE THAT MR SUNG SOLD HUNDREDS OF PAGES OF STOLEN GE DOCUMENTS ON GE'S DIAMONDMAKING PROCESS TO ILJIN AFTER GE INFORMED ILJIN THE DOCUMENTS WERE STOLEN THE KOREAN CONCERN REFUSED TO RETURN THEM GE ALLEGED THIS CASE WAS IMPORTANT SAID GARY L ROGERS PRESIDENT OF GENERAL ELECTRIC'S GE PLASTICS UNIT BECAUSE STOLEN GE TECHNOLOGY WAS BEING USED TO TAKE AWAY SALES AND ULTIMATELY GE JOBS A GE SPOKESMAN SAID THE COMPANY PLANS TO SEEK AN INJUNCTION AGAINST ILJIN BARRING IT FROM USING THE GE TRADE SECRETS GE ALSO PLANS TO SEEK UNDETERMINED MONETARY DAMAGES FROM ILJIN ILJIN PLANS TO APPEAL THE VERDICT ACCORDING TO MICHAEL KEATING AN ATTORNEY REPRESENTING ILJIN THE KOREAN CONCERN HAD NO KNOWLEDGE THE DOCUMENTS SOLD TO IT BY MR SUNG WERE STOLEN HE ADDED MOREOVER ILJIN ISN'T MAKING USE OF THE INFORMATION SUPPLIED BY MR SUNG BECAUSE IT HAS ITS OWN EXPERTISE IN MANUFACTURING SYNTHETIC DIAMONDS SAID MR KEATING GE SAID IT ALSO HAS FILED A LAWSUIT AGAINST CHINA'S SHENZHEN ASIA DIAMOND CO ALLEGING THAT IT BOUGHT MISAPPROPRIATED GE DOCUMENTS FROM MR SUNG CONCERNING THE PROCESS FOR MAKING SYNTHETIC DIAMONDS 9308020141 930802 WHO'S NEWS ABSOLUTE ENTERTAINMENT INC ABSOLUTE ENTERTAINMENT INC UPPER SADDLE RIVER NJ THIS DEVELOPER OF INTERACTIVE ENTERTAINMENT SOFTWARE PRODUCTS EXPANDED ITS BOARD TO FIVE FROM THREE THE NEW DIRECTORS ARE ALLEN KARP PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CINEPLEX ODEON CORP AND RAYMOND V SOZZI PRESIDENT AND CHIEF EXECUTIVE OF INSCI CORP 9308020140 930802 INTERNATIONAL ITALIAN PRICES ROSE 04 IN JULY ROME ITALY'S CONSUMER PRICE INDEX ROSE 04 IN JULY FROM JUNE AND WAS UP 44 FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT SAID THE YEARONYEAR INFLATION RATE WAS IN LINE WITH EXPECTATIONS BASED ON PRELIMINARY INDICATIONS FROM A GROUP OF MAJOR CITIES DISCLOSED LAST WEEK THE 44 RATE SUGGESTS ITALY'S INFLATION IS CREEPING UPWARDS A VIEW ENDORSED BY PRIME MINISTER CARLO A CIAMPI EARLIER FRIDAY ITALY'S GOVERNMENT HAS TARGETED AN AVERAGE INFLATION RATE OF 45 FOR THE WHOLE OF 1993 ISTAT SAID THE INCREASE IN JULY LARGELY RESULTED FROM AN INCREASE IN HOUSING COSTS WHICH ROSE 68 AND ELECTRICITY AND FUEL COSTS UP 67 9308020139 930802 LAW LEGAL BEAT CHINA PUTS ITS SHINGLE OUT IN US IN A BID FOR BURGEONING BUSINESS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL CHINA HAS A NEW EXPORT FOR THE US MARKET LAWYERS A PRIVATE LAW FIRM IN BEIJING HAS OPENED A NEW YORK OFFICE THE FIRST OVERSEAS BRANCH OF A CHINESE LAW FIRM IN A BID TO NAB A SHARE OF THE BURGEONING LEGAL BUSINESS STEMMING FROM AMERICANCHINESE VENTURES JUN HE LAW OFFICE FOUNDED IN 1989 AS ONE OF CHINA'S FIRST PRIVATE LAW FIRMS HAS LONG ADVISED US ATTORNEYS IN CHINA NOW WITH ITS OWN OFFICE IN NEW YORK JUN HE PRONOUNCED JWIN HER EXPECTS TO PLAY A MORE DIRECT ROLE IN REPRESENTING US CLIENTS IN CHINA AND CHINESE CLIENTS IN THE US THE LAW FIRM'S TIMING FOR SUCH A MOVE COULDN'T BE BETTER US LAWYERS DEALING WITH CHINA SAY AFTER THE CHINESE GOVERNMENT'S CRACKDOWN IN TIANANMEN SQUARE IN THE SPRING OF 1989 COMMERCIAL VENTURES WITH US COMPANIES DRIED UP BUT NOW BUSINESS OPPORTUNITIES ARE ON THE RISE AGAIN LAWYERS SAY WITH AN ACCOMPANYING INCREASE IN DEMAND FOR LEGAL SERVICES ON BOTH SIDES OF THE PACIFIC CHINA TODAY OFFERS TRULY A BOOMING OPPORTUNITY FOR AMERICAN BUSINESSES AND THEIR LAWYERS AND ADVISERS SAID EUGENE THEROUX AN ATTORNEY AT INTERNATIONAL LAW FIRM BAKER & MCKENZIE WHO HAS REPRESENTED THE CHINESE GOVERNMENT MR THEROUX WHO OPENED BAKER & MCKENZIE'S BEIJING OFFICE IN 1980 SAID THERE ARE CERTAINLY OPPORTUNITIES FOR CHINESE LAW FIRMS TO GET ESTABLISHED HERE THEY SHOULD BE PRETTY SUCCESSFUL ACTUALLY XIAOLIN ZHOU JUN HE'S RESIDENT PARTNER IN NEW YORK SAID THE CHINESE ATTORNEYS CAN OFFER US CLIENTS AN EDGE IN DEALING WITH THE MASSIVE CHINESE BUREAUCRACY THAT GOVERNS MANY COMMERCIAL TRANSACTIONS MOREOVER ONLY CHINESE LAWYERS ARE ALLOWED TO PRACTICE LAW IN THAT COUNTRY ALTHOUGH US ATTORNEYS ARE OFTEN INVOLVED IN BUSINESS TRANSACTIONS THERE UNTIL NOW THE TRADING OF SERVICES BETWEEN THE US AND CHINA HAS ONLY GONE ONE DIRECTION SAID MR ZHOU FORMER HEAD OF THE INTERNATIONAL LAW DIVISION OF CHINA'S MINISTRY OF FOREIGN AFFAIRS MR ZHOU A GRADUATE OF HARVARD LAW SCHOOL WHO PREVIOUSLY PRACTICED LAW AT GOODWIN PROCTER & HOAR IN BOSTON WILL BE JOINED BY TWO OTHER JUN HE ATTORNEYS IN THE NEW YORK OFFICE JUN HE WHICH MEANS GENTLEMEN'S COOPERATION HAS A TOTAL OF ABOUT 40 LAWYERS AND IS INDEPENDENT OF THE CHINESE GOVERNMENT MR ZHOU SAID US COMPANIES ALREADY ARE SIGNING UP AS CLIENTS INCLUDING A COMPUTER COMPANY PLANNING A VENTURE IN CHINA PART OF THE APPEAL MR ZHOU SAID HAS BEEN THE CHINESE FIRM'S HOURLY RATESWHICH AT 150 TO 245 AN HOUR ARE MUCH LESS THAN THE FEES OF MAJOR NEW YORK LAW FIRMS OPERATING IN CHINA BECAUSE THE LEGAL FRAMEWORK FOR BUSINESS IN CHINA IS STILL DEVELOPING PRIVATE FIRMS SUCH AS JUN HE FIND THEY ARE ON THE FRONTIER IN SHAPING MANY ASPECTS OF THE LAW THE FIRM'S WORK HAS INCLUDED REORGANIZING MAJOR STATEOWNED OPERATIONS INTO PRIVATE ENTERPRISES AND ADVISING MOTOROLA INC ON MAKING AND MARKETING CELLULAR PHONES IN CHINA THE LAW FIRM ALSO SET UP CHINA'S FIRST SALE OF MORTGAGES FOR A RESIDENTIAL PROJECT AND HAS ARRANGED FOR US INVESTMENT FIRMS TO ACQUIRE STAKES IN CHINESE VENTURES WE ARE SETTING PRECEDENT FOR THE CHINESE LEGAL SYSTEM THE 39YEAROLD MR ZHOU SAYS CHINA'S PRIVATE LAWYERS LARGELY COME FROM GOVERNMENT BACKGROUNDS OR PROFESSORSHIPS AT UNIVERSITIES AND THEY TYPICALLY HAVE USEFUL CONNECTIONS WITHIN THE CHINESE BUREAUCRACY SAID JOHN T KESLER WHOSE SALT LAKE CITY LAW FIRM WOODBURY & KESLER PREVIOUSLY REPRESENTED ONE OF THE CHINESE PROVINCES THE LEGAL SYSTEM IS SO MUCH LESS SOPHISTICATED IT IS STILL LARGELY BASED ON WHO YOU KNOW MR KESLER SAID BUT HE SAID THE CHINESE LAW FIRMS HAVEN'T ESTABLISHED WHETHER THEY HAVE THE SOPHISTICATION TO BE ON THE FRONT LINE IN MANY BUSINESS TRANSACTIONS SO FAR MR KESLER SAID THEY'VE RELIED MAINLY ON US LAW FIRMS TO ADVISE THEM NONETHELESS THE CHINESE LEGAL PROFESSION IS GAINING GROUND RAPIDLY AS MORE AND MORE YOUNG PEOPLE CHOOSE THE INCREASINGLY LUCRATIVE BUSINESSLAW FIELD MR ZHOU SAID PRIVATE LAWYERS EARN FIVE TO 10 TIMES AS MUCH AS STATE LEGAL WORKERS AND UNIVERSITY PROFESSORS HE SAID LAWYERS INCREASINGLY ARE GAINING SOCIAL RESPECT HE SAID WE NO LONGER CARRY THE STIGMA OF DEFENDING CRIMINALS OR BEING BAD PEOPLE AND CHINESE BUSINESSPEOPLE HAVE BEGUN TO ACCEPT THE NEED FOR ATTORNEYS THEY'VE LEARNED TO SAY 'TALK TO MY LAWYER' MR ZHOU SAID A GAY BRAZILIAN WAS GRANTED POLITICAL ASYLUM IN THE US BECAUSE HE WAS FOUND TO HAVE A REASONABLE FEAR OF PERSECUTION IN BRAZIL BASED ON HIS SEXUAL ORIENTATION IN MAKING WHAT APPEARS TO BE THE FIRST DECISION OF ITS KIND IN THE US PHILIP LEADBETTER AN ADMINISTRATIVE LAW JUDGE FOR THE IMMIGRATION AND NATURALIZATION SERVICE IN SAN FRANCISCO RULED THAT THE BRAZILIAN WAS PART OF A SOCIAL GROUP TARGETED FOR PERSECUTION ONE OF THE REQUIREMENTS FOR ASYLUM MR LEADBETTER CITED EVIDENCE OF ANTIGAY COMMANDO' GROUPS IN BRAZIL AND ATTACKS ON GAYS THE BRAZILIAN 30YEAROLD MARCELO TENORIO SAID HE FLED TO THE US IN 1990 BECAUSE HE FEARED FOR HIS LIFE AFTER HE WAS BEATEN AND STABBED OUTSIDE A GAY CLUB GAYRIGHTS GROUPS RECENTLY HAVE BEGUN PURSUING SUCH CASES BEFORE THE INS VIET NGUYEN OF THE INTERNATIONAL GAY AND LESBIAN HUMAN RIGHTS COMMISSION IN SAN FRANCISCO SAID ABOUT TWO DOZEN SIMILAR CASES ARE PENDING TANIA ALVAREZ A SAN FRANCISCO ATTORNEY WHO REPRESENTED THE BRAZILIAN SAID THAT ALTHOUGH DECISIONS BY ADMINISTRATIVE LAW JUDGES DON'T SET PRECEDENT MR LEADBETTER'S 18PAGE RULING IS LIKELY TO INFLUENCE OTHER CASES IT WILL MAKE IT EASIER FOR THE NEXT JUDGE SAID MS ALVAREZ DAVID ILCHERT INS DISTRICT DIRECTOR IN SAN FRANCISCO SAID THE RECORD IS BEING REVIEWED BY OUR LEGAL OFFICE TO SEE WHETHER OR NOT THE JUDGE'S DECISION WILL BE APPEALED A NATIONAL LAW JOURNAL POLL TO BE PUBLISHED TODAY FOUND THAT LAWYERS ARE LESS WELLRESPECTED THAN JUST ABOUT ANY GROUP EXCEPT POLITICIANS AND THAT PARENTS WOULD FAR PREFER THAT THEIR CHILDREN GROW UP TO BE DOCTORS TEACHERS OR ACCOUNTANTS SINCE THE TRADE NEWSPAPER'S 1986 POLL THE RANKS OF THOSE WHO SAID LAWYERS ARE LESS HONEST THAN MOST PEOPLE INCREASED FROM 17 TO 31 DURING THE SAME PERIOD THOSE WHO BELIEVE LAWYERS CHARGE TOO MUCH ROSE FROM 23 TO 43 THOSE WHO WANT THEIR CHILDREN TO BECOME LAWYERS DECLINED FROM 12 TO 5 BLACKS VIEW LAWYERS MORE FAVORABLY THAN WHITES ACCORDING TO THE POLL 54 OF BLACKS SAID THEIR OVERALL IMPRESSION OF LAWYERS IS GOOD OR EXCELLENT COMPARED WITH 30 OF WHITES AND ONLY 5 OF BLACKS SAID THEY HAVE A POOR OVERALL IMPRESSION OF LAWYERS COMPARED WITH 25 OF WHITES THE LAW JOURNAL'S NATIONAL POLL OF 815 PEOPLE WAS CONDUCTED IN MIDJULY BY PENN & SCHOEN ASSOCIATES INC NEW YORK ALUMINUM CO OF AMERICA HAS SELECTED THE NEW YORK LAW FIRM LEBOEUF LAMB LEIBY & MACRAE AS ITS PRIMARY OUTSIDE COUNSEL FOR LITIGATION UNDER AN INNOVATIVE FIXEDFEE MULTIYEAR ARRANGEMENT THE LAW FIRM IS SCHEDULED TO OPEN A PITTSBURGH OFFICE TODAY TO BE NEAR ALCOA THE WORLD'S LARGEST ALUMINUM COMPANY AN ALCOA SPOKESWOMAN SAYS THE DECISION TO PICK A SINGLE MAIN LITIGATION FIRM RATHER THAN RELY ON MANY AS WAS THE PRACTICE IN THE PAST WAS PART OF A OVERALL STRATEGY TO CUT COSTS WITHIN THE COMPANY CLIENTS HATE HOURLY RATES AND WE RECOGNIZE THAT SAID LEBOEUF PARTNER GRANT LEWIS CHARGING A FIXED FEE INSTEAD OF BY THE HOUR IS A WHOLE DIFFERENT BALLGAME SAID MR LEWIS WHO DECLINED TO SPECIFY THE AMOUNT OF THE FEE LEBOEUF PARTNER THOMAS C ROHBACK WILL BE IN CHARGE OF THE EIGHTATTORNEY PITTSBURGH OFFICE WHICH IS EXPECTED TO DEVELOP INTO A FULLSERVICE OFFICE ACCORDING TO MR LEWIS LEBOEUF HAS DONE WORK FOR ALCOA SINCE THE LAW FIRM'S INCEPTION IN 1929 HE NOTED KATIA HETTER CONTRIBUTED TO THIS ARTICLE 9308020138 930802 INTERNATIONAL JAPAN'S WHOLESALE PRICES DECLINE TOKYO JAPAN'S OVERALL WHOLESALE PRICES DURING THE SECOND 10 DAYS OF JULY WERE EVEN WITH THE PREVIOUS 10 DAYS BUT WAS DOWN 32 FROM THE YEAREARLIER PERIOD THE BANK OF JAPAN SAID THE CENTRAL BANK SAID SOFTNESS OF PRICES REFLECTED WEAKNESS OF DEMAND IN THE COUNTRY FOR FOODSTUFFS AND AGRICULTURAL PRODUCTS INCLUDING PORK AND POULTRY 9308020137 930802 WHO'S NEWS OKI ELECTRIC INDUSTRY CO OKI ELECTRIC INDUSTRY CO TOKYO JAMES D BUTTERWORTH 54 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF THE PRINTER BUSINESS OF OKIDATA A US SUBSIDIARY OF THIS COMPUTER TELECOMMUNICATIONS AND ELECTRONICS CONCERN MR BUTTERWORTH HAD BEEN VICE PRESIDENT OF CHANNEL DEVELOPMENT AT OKIDATA AND VICE PRESIDENT AND GENERAL MANAGER OF OKIDATA'S MICROSYSTEMS DIVISION 9308020136 930802 ERICSSON GETS 192 MILLION ORDER STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP AB LM ERICSSON SAID IT RECEIVED AN ORDER VALUED AT 158 MILLION KRONOR 192 MILLION TO INCREASE THE CAPACITY OF THE MOBILE TELEPHONE NETWORK IN KUWAIT THE EXPANSION WILL ENABLE NETWORK OPERATOR MOBILE TELEPHONE SYSTEM CO OF KUWAIT TO SERVE AN ADDITIONAL 20000 SUBSCRIBERS BRINGING TOTAL CAPACITY TO 70000 SUBSCRIBERS ERICSSON SAID 9308020135 930802 POLITICS & POLICY WHITE HOUSE STAFF QUESTIONED BY FBI ABOUT DELAY IN HANDLING OF FOSTER NOTE BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHITE HOUSE STAFF MEMBERS WERE INTERVIEWED BY THE FEDERAL BUREAU OF INVESTIGATION ABOUT A 30HOUR DELAY IN THE HANDLING OF A TORNUP NOTE WRITTEN BY DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER JR WHO WAS FOUND DEAD LAST MONTH OF AN APPARENT SUICIDE PRESS SECRETARY DEE DEE MYERS SAID THE WHITE HOUSE STAFF DIDN'T IMMEDIATELY GIVE AUTHORITIES THE NOTE WHICH WAS FOUND IN THE BOTTOM OF MR FOSTER'S BRIEFCASE BECAUSE THEY WANTED TO FIRST NOTIFY PRESIDENT CLINTON WHO WAS IN CHICAGO THAT DAY AS WELL AS MR FOSTER'S FAMILY THE FBI LATE LAST WEEK JOINED THE PARK POLICE WHO ARE INVESTIGATING THE CASE IN TRYING TO DETERMINE THE REASON FOR THE DELAY IN TURNING OVER THE NOTE MS MYERS SAID THE JUSTICE DEPARTMENT HAS TOLD THE WHITE HOUSE NOT TO RELEASE THE NOTE TO THE MEDIA BECAUSE IT IS PART OF A PENDING INVESTIGATION THE NOTE IS SAID TO INDICATE THAT MR FOSTER WAS UPSET OVER WORKRELATED ISSUES INCLUDING SEVERAL EDITORIALS PUBLISHED IN THE WALL STREET JOURNAL THAT CRITICIZED HIM BY NAME THE NOTE IS DESCRIBED AS MENTIONING FRUSTRATIONS THAT MR FOSTER HAD WITH HIS JOB AND A FEELING THAT HE HAD LET DOWN HIS FRIENDS THE PRESIDENT AND HILLARY RODHAM CLINTON THE COUNSEL'S OFFICE HAD BEEN CRITICIZED FOR THE POOR SCREENING OF SEVERAL JUSTICE DEPARTMENT NOMINEES AS WELL AS FOR ITS PART IN THE BOTCHED FIRING OF THE WHITE HOUSE TRAVEL OFFICE EMPLOYEES THE JOURNAL EDITORIALS SAID THAT MR FOSTER WAS ONE OF SEVERAL APPOINTEES FROM MRS CLINTON'S LAW FIRM IN LITTLE ROCK WHO HAD YET TO DISTINGUISH THEMSELVES IN WASHINGTON IN THE NOTE MR FOSTER SOUNDED AS IF HE PLANNED TO RESIGN BUT DIDN'T INDICATE HE WAS CLOSE TO ENDING HIS OWN LIFE THE NOTE HOWEVER HELPED THE WHITE HOUSE TO UNDERSTAND HIS STATE OF MIND MS MYERS SAID IT DID SHOW HIM TO BE IN A DISTRESSED STATE OF MIND AUTHORITIES BELIEVE THAT MR FOSTER KILLED HIMSELF HIS BODY WAS FOUND JULY 20 AT A FEDERAL PARK IN MCLEAN VA WITH A SINGLE GUNSHOT WOUND TO THE HEAD MS MYERS ACKNOWLEDGED THE NOTE WAS MISSED IN AN INITIAL SEARCH OF MR FOSTER'S OFFICE BUT WAS FOUND WHILE AN ASSOCIATE IN THE LEGAL COUNSEL'S OFFICE WAS PACKING MR FOSTER'S BELONGINGS FOR HIS FAMILY THE WHITE HOUSE ALSO ACKNOWLEDGED THAT AUTHORITIES FOUND A PIECE OF PAPER THAT BELONGED TO MR FOSTER LISTING THE NAMES OF THREE PSYCHIATRISTS MS MYERS SAID IT WASN'T FOUND AT THE WHITE HOUSE AND SHE DIDN'T KNOW WHERE AUTHORITIES LOCATED IT 9308020134 930802 CORPORATE PERFORMANCE REVIEW 2ND QUARTER 1993 COMPANIES' NET INCOME ROSE 11 FURTHER MODERATE GAINS EXPECTED A WALL STREET JOURNAL NEWS ROUNDUP CORPORATE PROFITS FOR THE SECOND QUARTER WERE SLIGHTLY HIGHER FROM A YEAR EARLIER AND FURTHER GAINS ARE WIDELY EXPECTED AS 1993 UNFOLDS FOR THE QUARTER 609 MAJOR CORPORATIONS REPORTED NET INCOME ROSE A CUMULATIVE 11 FROM THE 1992 PERIOD ACCORDING TO A WALL STREET JOURNAL SURVEY FOR THE FIRST QUARTER BY CONTRAST THERE WAS A LOSS LARGELY BECAUSE OF ACCOUNTING CHANGES MANDATED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD AFTERTAX PROFIT FROM CONTINUING OPERATIONS ALSO ROSE IN THE LATEST QUARTER WITH A GAIN OF 10 IN THE FIRST QUARTER THE RISE WAS 20 LOOKING AHEAD MANY ECONOMISTS EXPECT FURTHER INCREASES BUT CAUTION THAT GAINS MAY REMAIN MODERATE LIKELY DEPRESSANTS RANGE FROM CONTINUING SLUGGISH ECONOMIC GROWTH TO HIGHER TAXES THE GROWTH IN PROFITS APPEARS TO HAVE PEAKED SAYS AN ANALYST AT BCA PUBLICATIONS AN ECONOMIC RESEARCH FIRM AN ECONOMIST AT MERRILL LYNCH PREDICTS OVERALL 1993 EARNINGS WILL BE UP NICELY BUT MANY DISAPPOINTMENTS ARE COMING AT THE SAME TIME HOWEVER MANY RECENT EARNINGS REPORTS HAVE CONTAINED UNEXPECTEDLY PLEASANT SURPRISES NOTES JAMES R SOLLOWAY RESEARCH DIRECTOR OF ARGUS RESEARCH THIS HE ADDS HAS HELPED TO KEEP THE OVERALL STOCK MARKET NEAR RECORD HIGHS SUCH POSITIVE SURPRISES PARTLY REFLECT DECLINING INTEREST RATES SAYS GAIL M DUDACK AN ANALYST AT SG WARBURG BUT THEY ALSO REFLECT A NEWFOUND LEVERAGE IN EARNINGS WHICH SHE ADDS ARISES FROM THE GREAT PRODUCTIVITY STRIDES MADE BY CORPORATE AMERICA AMONG INDUSTRY GROUPS AUTO MAKERS AND OIL COMPANIES HAD STRONG PROFIT GAINS THE COMPUTER INDUSTRY CONTINUED TO SUFFER WHILE AIRLINES SHOWED SIGNS OF A RECOVERY COSTCUTTING AND BUOYANT VEHICLE SALES IN NORTH AMERICA ARE SPURRING AN EARNINGS REVIVAL FOR THE BIG THREE AUTO MAKERS FORD MOTOR'S PROFIT FROM ITS CORE NORTH AMERICAN AUTO OPERATIONS IMPROVED SIGNIFICANTLY AND ITS FINANCIALSERVICES UNIT POSTED STRONG GAINS BUT FORD'S PROFIT MACHINE DOESN'T LOOK AS EFFICIENT AS IT ONCE DID PERVEHICLE PROFIT WAS LESS THAN HALF OF WHAT CHRYSLER EARNED FOR EACH VEHICLE CHRYSLER SAW A MARKED IMPROVEMENT FROM A YEAR EARLIER FOR A SIMPLE REASON CHRYSLER IS BUILDING PRODUCTS WHERE THE MONEY IS THE COMPANY IS ONE OF THE FEW MAJOR AUTOMAKERS WITHOUT SIGNIFICANT EXPOSURE IN THE DEPRESSED EUROPEAN MARKET AND IN THE US IT HAS CONCENTRATED ITS LIMITED LINEUP OF NEW PRODUCTS ON SOME OF THE MOST PROFITABLE NICHES INCLUDING MINIVANS AND SPORTUTILITY VEHICLES AT GM PROFITS FROM FINANCE COMPUTERSERVICES AND ELECTRONICS UNITS AND FROM OVERSEAS AUTOMOTIVE OPERATIONS OFFSET CONTINUED LOSSES IN THE CORE NORTH AMERICAN VEHICLE UNIT BUT THE NO 1 AUTO MAKER DID NARROW ITS LOSS ON NORTH AMERICAN VEHICLE OPERATIONS REFLECTING COSTCUTTING AND OFFICIALS SAY GM IS ON TRACK TO MEET ITS TARGET OF BREAKING EVEN THIS YEAR BEFORE TAXES INTEREST AND ACCOUNTING CHARGES MOST BIG OIL COMPANIES POSTED HEFTY INCREASES DURING THE SECOND QUARTER AS LOWER CRUDE OIL PRICES WERE MORE THAN OFFSET BY CONTINUED STRENGTH IN NATURAL GAS PRICES IN ADDITION THE DECLINE IN PRICES FOR CRUDE THE RAW MATERIAL FROM WHICH OIL PRODUCTS ARE REFINED FUELED GREATER PROFITABILITY IN THE REFINING AND MARKETING SECTOR AND COSTCUTTING PROGRAMS PUT IN PLACE DURING THE PAST FEW YEARS CONTINUED TO PROVIDE BENEFITS PROFITS FROM PETROCHEMICAL UNITS HOWEVER GENERALLY CONTINUED TO BE DEPRESSED AND EXECUTIVES AREN'T EXPECTING THE FACTORS THAT PROPPED UP THE OIL INDUSTRY'S BOTTOM LINE DURING THE SECOND QUARTER TO REMAIN IN PLACE THROUGH THE REST OF THE YEAR OIL PRICES HAVE CONTINUED TO SLIP AS DISARRAY WITHIN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAS RESULTED IN OVERPRODUCTION AND AN OVERLY ABUNDANT SUPPLY OF CRUDE WITHIN SOME MARKETS REFINING MARGINS INDICATIVE OF PROFITABILITY FOR THAT SECTOR ALSO HAVE BEEN SHRINKING CHEVRON'S OPERATING PROFIT ROSE BY 60 A HUGE CHARGE OF 552 MILLION INVOLVING THE ANTICIPATED SALE OF REFINERIES TOOK A BITE OUT OF NET INCOME THE LOSS AT AMERADA HESS INCLUDED A CHARGE OF 802 MILLION MOSTLY TO WRITE DOWN OIL INVENTORIES THE GLUTTED COMPUTER MARKET AND POOR ECONOMIC CONDITIONS IN EUROPE RESULTED IN ONLY A FEW POSITIVE SURPRISES FOR COMPUTER COMPANIES THE THIRDQUARTER OUTLOOK APPEARS EQUALLY BLEAK SUN MICROSYSTEMS COMPAQ AND EVEN INTERNATIONAL BUSINESS MACHINES REPORTED SLIGHTLY BETTERTHANEXPECTED RESULTS SUN CUTTING EXPENSES WHILE STABILIZING PRICES SHOWED STRONG SALES FOR ITS OPERATING SYSTEMS COMPAQ CONTINUED TO DEFY THE SLUMP NEARLY DOUBLING REVENUE AND MORE THAN TRIPLING PROFIT DIGITAL EQUIPMENT POSTED ITS FIRST PROFIT IN TWO YEARS THE RESULT OF DRASTIC COSTCUTTING DURING THE PAST YEAR THE COMPANY'S YEAREARLIER QUARTER INCLUDED A 15 BILLION RESTRUCTURING CHARGE IN THE CASE OF BIG BLUE ITS 40 MILLION OPERATING LOSS WAS HELPED SOMEWHAT BY A MODERATE PROFIT IN THE PERSONAL COMPUTER BUSINESS AND REVENUE GAINS IN WORKSTATIONS AND COMPUTER SERVICES IBM'S BIG NET LOSS WAS LARGELY THE RESULT OF AN 89 BILLION PRETAX CHARGE FOR FURTHER LAYOFFS AND OTHER RESTRUCTURING MOVES CHAIRMAN LOUIS V GERSTNER JR STRESSED THAT THE CHARGE IF ASSUMPTIONS PROVE CORRECT WOULD BE IBM'S LAST UNISYS' YEAREARLIER PERIOD INCLUDED A ONETIME GAIN WHILE THE COMPANY CONTINUED TO BENEFIT FROM COSTCUTTING REVENUE REMAINED SLUGGISH TANDEM IN A FURTHER RESTRUCTURING TOOK CHARGES TOTALING 451 MILLION APPLE REPORTED SURPRISINGLY WEAK OPERATING PROFIT AND AN UNEXPECTEDLY LARGE ONETIME CHARGE OF 1989 MILLION FOR LAYOFFS AND OTHER COST REDUCTIONS THE AIRLINE INDUSTRY SHOWED SIGNS OF A FEEBLE RECOVERY WITH MANY CARRIERS POSTING THEIR FIRST PROFITS IN MORE THAN A YEAR EVEN SO MOST CARRIERS SAY THE LONGTERM TRENDS FOR THE INDUSTRY DON'T BODE WELL ONE REASON FOR THE IMPROVEMENT IS THE COMPARISON WITH A WEAK YEAREARLIER PERIOD IT WAS DURING THE 1992 SECOND QUARTER THAT AMR UNVEILED SEVERAL FARE CUTS THAT PUSHED THE INDUSTRY INTO MASSIVE LOSSES THOSE LOSSES GREW WORSE AS THE YEAR WENT ON THIS YEAR HOWEVER FARES ARE HIGHER AND AIRLINES HAVE CUT COSTS TO THE BONE THE MODERATE PROFIT AT AMR PARENT OF AMERICAN AIRLINES SHOWED THE RESULT OF THE CARRIER'S PROGRAM TO SHED ROUTES PLANES AND EMPLOYEES THE QUARTER INCLUDED A CHARGE OF 70 MILLION FOR THE ELIMINATION OF 31 OLDER JETS STRINGENT COSTCUTTING PRODUCED THIN PROFITS AT USAIR GROUP AND DELTA AIR LINES DELTA'S PROFIT WAS THE CARRIER'S FIRST IN NEARLY TWO YEARS BUT THE COMPANY STILL IS LOSING HEAVILY ON TRANSATLANTIC FLIGHTS UAL'S RESULTS WERE HURT BY FARE CUTS ON NORTH ATLANTIC ROUTES AND A SLOW RECOVERY IN THE DOMESTIC TRAVEL MARKET BUT THE UNITED AIRLINES PARENT MANAGED A PROFIT AS USUAL SOUTHWEST AIRLINES SOARED POSTING ITS HIGHEST QUARTERLY PROFIT EVER IT SAID EARNINGS IN THE CURRENT QUARTER ARE LIKELY TO EXCEED YEAREARLIER RESULTS HERE ARE THE SECONDQUARTER PROFITS FOR VARIOUS INDUSTRY GROUPS AND COMPARISONS WITH THE YEAREARLIER QUARTER WHEN INDIVIDUAL COMPANIES REPORT FOR THREEMONTH PERIODS OTHER THAN CALENDAR QUARTERS THE NEAREST COMPARABLE PERIODS ARE USED IN ALL THE TABLES 000S ARE OMITTED STEELMAKERS CONTINUED TO SEE IMPROVED RESULTS IN THE QUARTER AND THOUGH LAST WEEK'S NEGATIVE RULING ON THE BULK OF THE INDUSTRY'S TRADE CASES AGAINST FOREIGN PRODUCERS WILL LIKELY HURT RESULTS IN THE FOURTH QUARTER AND BEYOND ANALYSTS EXPECT MORE IMPROVEMENT IN THE THIRD QUARTER INDUSTRY SHIPMENTS ARE UP ON IMPROVED DEMAND AND HIGHER PRICES ALREADY HAVE BEEN BOOKED FOR THE THIRD QUARTER EXCLUDING UNUSUAL ITEMS INCLUDING A 403 MILLION CHARGE RELATED TO AN ANTITRUST LAWSUIT INVOLVING A FORMER UNIT USX'S US STEEL HAD A SMALL PROFIT INLAND STEEL INDUSTRIES NEARLY PULLED INTO THE BLACK IT SAID IT IS CONFIDENT ABOUT RETURNING TO PROFITABILITY IN THE THIRD QUARTER BETHLEHEM STEEL SHARPLY NARROWED ITS LOSS IT FORECAST A PROFIT FOR THE THIRD QUARTER SPECIALTY STEELMAKERS STEEL MINIMILLS AND STEEL PROCESSORS CONTINUED TO POST RELATIVELY STRONG EARNINGS ALUMINUM MAKERS' RESULTS CONTINUED TO DECLINE THE RESULT OF A WORLDWIDE OVERSUPPLY THAT SHOWS NO SIGN OF SUBSIDING ALUMINUM CO OF AMERICA GAVE SOME LIFT TO DEPRESSED PRICES BY CURTAILING SOME OF ITS US CAPACITY BUT ANALYSTS SAY OTHER PRODUCERS MUST MATCH THOSE CUTS TO RAISE THE INDUSTRY'S FORTUNES EXCLUDING A YEAREARLIER CHARGE OF 50 MILLION AND OTHER SPECIAL ITEMS ALCOA'S EARNINGS SLIPPED 21 MANY WOODPRODUCTS COMPANIES SAW EARNINGS MOMENTUM SLOW OR DECLINE DURING THE QUARTER INDUSTRY EXPERTS BLAMED A DROP IN PRICES ON A PREVIOUS BUILDUP IN LUMBER INVENTORIES PRICES REACHED RECORD LEVELS IN MARCH BUT SLOWERTHANEXPECTED HOUSING STARTS HAVEN'T SOAKED UP THE EXCESS SUPPLY THE CLINTON ADMINISTRATION'S PLAN TO RESOLVE THE SPOTTED OWL CRISIS DIDN'T PRODUCE AN EXPECTED SURGE IN LOG PRICES EITHER A BIG EXCEPTION TO THE TREND WEYERHAEUSER PRICES FOR THE COMPANY'S BIGGEST PROFIT CENTER LOG EXPORTS CONTINUED TO CLIMB THROUGH MAY AND ONLY BEGAN FALLING LAST MONTH THE PAPER SIDE OF THE INDUSTRY REMAINED LIMP COATED FREESHEET OR BUSINESS PAPERS AND NEWSPRINT HAD SOME REBOUND IN PRICES BUT THE GAINS CAME OFF OF RECORD LOWS FOR BOTH SEGMENTS AND FAILED TO CUT THROUGH THE INDUSTRY'S GLOOM CHEMICAL COMPANY RESULTS WERE MIXED THE RECESSION GRIPPING MUCH OF EUROPE AND EXCESS SUPPLIES WORLDWIDE FORCED PRICES LOWER ON MANY BULK PLASTICS AND CHEMICALS BUT MAJOR PRODUCTS TARGETING SPECIALIZED APPLICATIONS SUCH AS MONSANTO'S ROUNDUP HERBICIDE WHICH WAS IN DEMAND ACROSS THE MIDWEST THIS SPRING AS HEAVY RAINS SPURRED WEED GROWTH BOOSTED RESULTS AT SEVERAL COMPANIES MAJOR ONETIME CHARGES AND GAINSSUCH AS THE 180 MILLION PRETAX CHARGE TAKEN BY DOW CHEMICAL'S MARION MERRELL DOW DRUG SUBSIDIARY TO COVER RESTRUCTURING COSTS OR BF GOODRICH'S PRETAX GAIN OF 919 MILLION FROM THE SALE OF A NEARLY 50 STAKE IN THE COMPANY'S POLYVINYL CHLORIDE PLASTICS BUSINESSSKEWED COMPARISONS FOR MANY COMPANIES A DECLINE IN OVERSEAS DRILLING KEPT A LID ON PROFITS AT OILSERVICE AND DRILLING COMPANIES IN PARTICULAR THERE WAS A SLOWDOWN IN THE NORTH SEA AND MANY COMPANIES ARE BRINGING EQUIPMENT BACK TO THE US WHERE ACTIVITY HAS PICKED UP SHARPLY IN THE GULF OF MEXICO THE RISE IN NATURAL GAS PRICES HAS BOOSTED DRILLING IN THE GULF AND ACTIVITY ONSHORE HAS RISEN A BIT TOO NATURALGAS PIPELINE PROFITS ROSE REFLECTING STRONGER PRICING FOR TRANSPORTING FUEL OWNED BY OTHER COMPANIES AND HIGHER VOLUMES OF GAS PANHANDLE EASTERN REPORTED A 37 INCREASE IN OPERATING PROFIT IN ITS GASTRANSMISSION UNITS PRICES GOT A BOOST PARTLY BECAUSE CUSTOMER INVENTORIES FELL TO THEIR LOWEST LEVEL IN A DECADE MANY CUSTOMERS RUSHED TO REPLENISH INVENTORIES AS UNSEASONABLY COLD WEATHER IN THE MIDWEST LINGERED INTO EARLY APRIL MAJOR RAILROADS DELIVERED ANOTHER ROUND OF EARNINGS GAINS AS THEY BENEFITED FROM AGGRESSIVE COST CONTROLS AND MODERATE TRAFFIC GROWTH STRONG RAIL PERFORMANCE HELPED UNION PACIFIC BOOST EARNINGS 21 EXCLUDING A YEAREARLIER GAIN FROM A TAX SETTLEMENT SANTA FE PACIFIC CITING IMPROVED RAIL GOLD AND PIPELINE OPERATIONS HAD A 48 EARNINGS INCREASE EXCLUDING A 1083 MILLION GAIN FROM AN ASSET EXCHANGE CSX SAID A COSTCONTROL PROGRAM OFFSET WEAK COAL EXPORTS AND A STRIKE AGAINST KEY COAL PRODUCERS EARNINGS WOULD HAVE RISEN 20 WITHOUT A YEAREARLIER RESTRUCTURING CHARGE OF 450 MILLION BUT ANALYSTS SAY THE MIDWEST FLOODS THREATEN TO SHARPLY BOOST RAIL COSTS LOWER FREIGHT REVENUE AND REDUCE EARNINGS IN THE CURRENT QUARTER AMONG TRUCKERS RATE DISCOUNTING AGAIN PLAGUED LESSTHANTRUCKLOAD CARRIERS CAROLINA FREIGHT SAID ITS LOSS REFLECTED LOWER FREIGHT RATES AND HIGHER EMPLOYEE WAGES AND BENEFITS YELLOW CITED FIERCE COMPETITION AND PRESSURE ON RATES FOR A 62 EARNINGS DECLINE EXCLUDING AN ACCOUNTING CHARGE HOWEVER CONSOLIDATED FREIGHTWAYS WAS BUOYED BY STRONG PROFITS AT ITS REGIONAL TRUCK LINE AND IMPROVEMENTS AT ITS AIRFREIGHT COMPANY THE EARNINGS OUTLOOK FOR AIRFREIGHT COURIERS IMPROVED AS PRICES CONTINUED TO STABILIZE STILL THE DOMESTIC BUSINESS REMAINED DISAPPOINTING FEDERAL EXPRESS CUT ITS INTERNATIONAL LOSSES IN HALF BUT DOMESTICALLY THE CARRIER ONLY REDUCED PACKAGE COSTS BY 1 AND POSTED A DECLINE IN PROFIT MARGINS FROM A YEAR EARLIER INDUSTRY PLAYERS CONTINUED TO SEE GREATER VOLUME GROWTH IN NEXTAFTERNOON OR TWODAY DELIVERY SERVICES WHICH ARE LESS PROFITABLE THAN NEXTMORNING DELIVERIES TRUCK MAKERS AND THEIR SUPPLIERS POSTED SHARPLY HIGHER EARNINGS AS AN UPTURN IN THE MEDIUM AND HEAVYTRUCK INDUSTRY CONTINUED EATON SAID THAT WHILE THE EUROPEAN MARKET WAS STILL WEAK NORTH AMERICAN FACTORY SALES OF HEAVYDUTY TRUCKS ARE NOW PROJECTED AT 180000 UNITS FOR THE YEAR THE HIGHEST LEVEL SINCE 1979 TRINITY'S RAILCAR OPERATION SAW A BIG JUMP IN EARNINGS AND REVENUE FOR HEAVYEQUIPMENT COMPANIES THE QUARTER SAW A CONTINUATION OF WHAT'S WIDELY CONSIDERED TO BE THE FIRST STAGE OF A BROAD RESURGENCE IN DEMAND IN NORTH AMERICA BUT THE ABSENCE OF ANY SIGNIFICANT RECOVERY IN THE EUROPEAN MARKET PUT A DRAG ON EARNINGS GROWTH FOR INDUSTRY PLAYERS CATERPILLAR SAW HIGHER SALES IN NEARLY EVERY LINE AND SAID IT EXPECTS CONTINUED PROFITABILITY FOR THE REMAINDER OF THE YEAR DEERE'S OPERATING PROFITMORE THAN DOUBLED BUT NET WAS HURT BY AN 80 MILLION CHARGE TO SCALE BACK THE COMPANY'S EUROPEAN OPERATIONS THE HOUSING RECOVERY CONTINUED IN FITS AND STARTS DURING THE SECOND QUARTER AS HOME BUILDERS SPECIALIZING IN AFFORDABLE HOUSES PERFORMED WELL WHILE SOME COMPANIES WITH AN EMPHASIS ON MORE EXPENSIVE HOMES FARED POORLY THE OVERALL INDUSTRY WAS CONSTRAINED AS WEATHERRELATED CONSTRUCTION DELAYS AND CONTINUED TIGHT CREDIT FOR SMALLER BUILDERS BLUNTED GROWTH IN HOUSING STARTS THE FUNDAMENTALS FOR FUTURE HOUSING SALES REMAIN FAIRLY HEALTHY AND THE NATIONWIDE MARKET SHOULD CONTINUE TO SLOWLY IMPROVE THIS YEAR INTEREST RATES ARE AT THEIR LOWEST LEVEL IN 22 YEARS ENABLING MORE PEOPLE TO QUALIFY TO BUY A HOME BUT ANALYSTS THINK IT COULD TAKE AS LONG AS A YEAR FOR THE CALIFORNIA HOUSING MARKET TO REVIVE SALES IN THE STATE ARE STRONG FOR THE CHEAPEST ENTRYLEVEL HOUSING BUT ARE WEAK FOR NEARLY EVERYTHING ELSE DISCOUNT AND SPECIALTYAPPAREL RETAILERS WHICH HAVE DONE WELL IN RECENT YEARS ARE EXPECTED TO POST PROFIT DECLINES FOR THEIR FISCAL SECOND QUARTERS ENDED JULY 30 CONSUMERS TAKING ADVANTAGE OF LOW INTEREST RATES BY BUYING HOMES AND FIXING THEM UP ARE PURCHASING HOME GOODS AND AVOIDING CLOTHING ANALYSTS EXPECT PROFITS TO FALL AT APPAREL COMPANIES SUCH AS GAP AND LIMITED BUT THEY'RE LOOKING FOR AN IMPROVED SECOND HALF WHEN CONSUMERS TYPICALLY SNAP UP CLOTHING FOR THE BACKTOSCHOOL AND CHRISTMAS SEASONS ALSO WITH SPECIALTY STORES SLASHING PRICES ON SLOWMOVING APPAREL CONSUMERS AREN'T SHOPPING DISCOUNTERS FOR THE BEST BUYS INDUSTRY LEADER WALMART STORES LESS DEPENDENT ON CLOTHING SALES IS EXPECTED TO REPORT A SLIGHT PROFIT GAIN DEPARTMENT STORES MEANWHILE ARE FARING BETTER ANALYSTS ARE PROJECTING PROFIT INCREASES AT MAY DEPARTMENT STORES AND JC PENNEY THE EXCEPTION IS NORDSTROM WHICH HAS MAJOR EXPOSURE IN THE TROUBLED CALIFORNIA ECONOMY SEARS ROEBUCK WHICH REPORTS ON A CALENDARYEAR BASIS POSTED A 78 INCREASE IN SECONDQUARTER EARNINGS EXCLUDING ONETIME ITEMS IN PART BECAUSE OF TURNAROUND EFFORTS AT ITS RETAIL OPERATIONS HOTEL AND CASINO COMPANIES CONTINUED TO PRODUCE UNEVEN RESULTS WITH SOME CASINO OPERATORS SHOWING STRENGTH HEADED INTO THE PEAK SUMMER SEASON MARRIOTT'S IMPROVED OPERATING RESULTS WERE MASKED BY AN ACCOUNTING CHANGE WHILE HILTON HOTELS' CASINOS WERE UNABLE TO MAKE UP FOR CONTINUED SOFTNESS IN THE HOTEL BUSINESS THE EARNINGS OUTLOOK FOR RESTAURANTS REMAINS POSITIVE ALTHOUGH THE SECOND QUARTER PRODUCED FLAT TO LOWER SAMESTORE SALES FIGURES MCDONALD'S US BUSINESS BENEFITED FROM SALES OF VALUE MEALS THE INTERNATIONAL BUSINESS GREW THROUGH EXPANSION AND HIGHER SALES AT EXISTING RESTAURANTS BUT WAS HURT BY WEAKER FOREIGN CURRENCIES BAD WEATHER HAD A MEASURABLE IMPACT IN THE FIRST MONTH OF SHONEY'S QUARTER THE COMPANY'S EARNINGS GAIN WAS PARTLY ATTRIBUTABLE TO EXPENSE CONTROLS AND AN INCREASE IN MENU PRICES BUT SAMESTORE SALES FELL 3 MAJOR COMPANIES IN THE ENTERTAINMENT INDUSTRY HAD MIXED RESULTS PARAMOUNT WOULD HAVE REPORTED A PROFIT WITHOUT A ONETIME CHARGE BUT ITS RESULTS WHICH COMPARE WITH A STRONG PERFORMANCE A YEAR EARLIER ALSO REFLECTED WEAKNESS IN ITS MOTION PICTURE DIVISION AND SEASONAL LOSSES IN EDUCATIONAL PUBLISHING TIME WARNER SAW IMPROVED OPERATING RESULTS IN ALL DIVISIONS BUT POSTED A LOSS BECAUSE OF INCREASED INTEREST EXPENSES AND A ONETIME CHARGE WALT DISNEY'S SOLID RESULTS CAME DESPITE SLOW THEMEPARK GROWTH DIFFICULT COMPARISONS WITH A YEAR EARLIER IN FILMED ENTERTAINMENT AND A LOSS FROM THE COMPANY'S INVESTMENT IN EURO DISNEY NEWSPAPER PUBLISHERS HAD MIXED RESULTS AS ADVERTISING LEVELS SOFTENED AFTER A FAST START FOR THE YEAR GANNETT POSTED INCREASES IN NEWSPAPER AD REVENUE AND STRONG GAINS IN BROADCASTING REVENUE PAID AD PAGES ALSO GREW AT GANNETT'S USA TODAY AT DOW JONES EARNINGS FELL PRIMARILY BECAUSE OF A DECLINE IN ADVERTISING AT THE WALL STREET JOURNAL AD LINAGE AT ITS COMMUNITY NEWSPAPERS WAS UP SLIGHTLY CAUTIOUS BUYING PRIVATELABEL COMPETITION AND HIGH MEAT PRICES REDUCED MANY FOOD COMPANIES' PROFITS KELLOGG'S DECLINE ALSO REFLECTED ADVERSE FOREIGNEXCHANGE RATES CHARGES RELATED TO CLOSING RESTAURANTS LOWERED GENERAL MILLS' EARNINGS GERBER'S YEAREARLIER RESULTS INCLUDED ACCOUNTING CHARGES THE BABYFOOD GIANT WAS HURT IN THE LATEST QUARTER BY LOWER US SHIPMENTS AND HIGHER EXPENSES OVERSEAS SLUGGISH SALES AND DIFFICULT CONDITIONS ABROAD SOURED HERSHEY'S EARNINGS HJ HEINZ TOOK A 111 MILLION RESTRUCTURING CHARGE REFLECTING EFFORTS TO SLASH COSTS IN THE FACE OF FLAT PRICING FOOD RETAILERS BENEFITED FROM A SLIGHT INCREASE IN PRICES AND A MORE STABLE BUSINESS ENVIRONMENT ALTHOUGH SOUTHERN CALIFORNIA REMAINED A RECESSIONWRACKED MARKET ALBERTSON'S STRATEGY OF LOWER PRICES AND COST CONTROLS BOOSTED PROFIT GREAT ATLANTIC & PACIFIC TEA'S YEAREARLIER QUARTER INCLUDED 1802 MILLION IN NONRECURRING CHARGES FOR ACCOUNTING CHANGES AND AN INVESTMENT LOSS KROGER SAID STRONG OPERATING CASH FLOW HELPED ITS TURNAROUND FROM A YEAREARLIER WHEN A PROLONGED STRIKE IN ITS MICHIGAN DIVISION CONTRIBUTED TO ITS LOSS FOOD LION HAS BEEN CUTTING MARGINS TO REBUILD BUSINESS AFTER A REPORT ALLEGING THAT THE COMPANY REPACKAGED AND SOLD OUTOFDATE MEAT THE MAJOR BEVERAGE COMPANIES REPORTED HIGHER PROFITS WITH HOT WEATHER IN THE US BOOSTING SOFTDRINK SALES COCACOLA'S OVERSEAS SALES VOLUME INCREASED A SOLID 7 WHILE THE US FIGURE ROSE AN UNUSUALLY STRONG 6 DOMESTICALLY COKE HAD STRONGER SALES IN RESTAURANTS AND OTHER FOUNTAIN ACCOUNTS AND FROM THE ADDITION OF NEW PRODUCTS PEPSICO SAW A JUMP IN PROFITS FOR BOTTLING PARTLY BECAUSE OF LOWER INGREDIENT COSTS IN COCACOLA ENTERPRISES' TURNAROUND THE BIG COKE BOTTLER BENEFITED FROM THE SAME COST TREND ANHEUSERBUSCH HAD AN ANEMIC 11 INCREASE IN SALES TO RETAILERS AS BEER DRINKERS SHIFTED TO LOWERPRICE BEERS PROFIT GROWTH IN THE PHARMACEUTICAL INDUSTRY CONTINUED TO BE A SHADOW OF ITS FORMER SELF REFLECTING PRESSURE ON PRICES WEAKNESS IN THE GERMAN AND ITALIAN MARKETS BECAUSE OF GOVERNMENT COSTCONTAINMENT EFFORTS AND ADVERSE CURRENCY TRANSLATIONS MERCK TOOK A RESTRUCTURING CHARGE OF 775 MILLION CAUSING ITS PROFIT TO PLUMMET PFIZER AND SCHERINGPLOUGH HOWEVER CONTINUED TO REPORT STRONG EARNINGS GROWTH ON THE STRENGTH OF NEW PRODUCTS THE CIGARETTE PRICE WAR HIT TOBACCO COMPANIES' BOTTOM LINE WITH A VENGEANCE THE EXTREMELY COMPETITIVE DOMESTIC TOBACCO ENVIRONMENT LED TO A SIGNIFICANT DECLINE IN OUR EARNINGS SAID CHARLES M HARPER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RJR NABISCO HOLDINGS LARGELY SUMMING UP THE INDUSTRY'S RESULTS PHILIP MORRIS WHICH INITIATED THE MOVE SAID MARLBORO PRICE CUTS HURT SHIPMENTS AND INCREASED MARKETING EXPENSES IN ADDITION TO THE TOBACCO WARS AMERICAN BRANDS' RESULTS WERE HURT BY FLUCTUATIONS IN FOREIGNEXCHANGE RATES AN EXCEPTION TO THE POOR RESULTS WAS UST THE SNUFF MAKER WHICH SO FAR HAS SUCCESSFULLY FENDED OFF CHALLENGES FROM CHEAPER BRANDS PRICE CUTS RESULTING IN RISING SALES OF COMPUTERS HAVE BEEN A BOON TO SEMICONDUCTOR MAKERS AS THE DOMINANT SUPPLIER OF THE MICROPROCESSORS FOR THOSE MACHINES INTEL CONTINUED TO INCREASE ITS PROFITS IT BEGAN SELLING A NEW CHIP CALLED PENTIUM WHICH IS PROVIDING THE BRAINS FOR A NEW GENERATION OF PERSONAL COMPUTERS ANALOG DEVICES AND NATIONAL SEMICONDUCTOR WHICH MAKE OTHER TYPES OF CHIPS SUCH AS THOSE THAT STORE DATA ALSO SAW THEIR PROFITS RISE APPLIED MATERIALS BENEFITED FROM SALES OF ITS CHIPMAKING MACHINERY AS USUAL MICROSOFT HOGGED MOST OF THE PROFITS AMONG COMPANIES MAKING SOFTWARE FOR DESKTOP COMPUTERS ITS EARNINGS DWARFED THE COMBINED NET INCOME OF ITS SIX BIGGEST COMPETITORS DATABASE AND NETWORKING COMPANIES SUCH AS NOVELL AND ORACLE BENEFITED FROM A MOVE BY CORPORATIONS TOWARD DESKTOP COMPUTERS AND AWAY FROM MAINFRAMES BORLAND CONTINUED TO RECOVER FROM A BADLY TIME ACQUISITION CUTTING COSTS AND PRICES TO JUMPSTART EARNINGS OTHER COMPANIES' RESULTS WERE DETERMINED BY NEWPRODUCT CYCLES AUTODESK A MAKER OF AUTOMATEDDESIGN SOFTWARE IS STARTING TO BENEFIT FROM A NEW ROUND OF PRODUCTS WHILE ADOBE WHICH PRODUCES DESKTOP PUBLISHING PROGRAMS INVESTED HEAVILY IN NEWLY COMPLETED PRODUCTS FLATTENING EARNINGS LOTUS'S EARNINGS WERE UP SLIGHTLY BEFORE AN EXTRAORDINARY CHARGE RELATED TO AN ACQUISITION AMONG COMMUNICATIONS COMPANIES THE ANEMIC ECONOMY AND COMPETITIVE PRESSURES KEPT REVENUE FLAT FOR AMERICAN TELEPHONE & TELEGRAPH'S LONGDISTANCE SERVICES AT&T TOOK A 287 MILLION CHARGE FOR A WORKFORCE REDUCTION AND FACILITY CONSOLIDATION PLAN WHICH WAS PARTLY OFFSET BY A 217 MILLION GAIN FROM THE SALE OF AT&T'S STAKE IN UNIX SYSTEM LABORATORIES RESULTS FOR THE AEROSPACE INDUSTRY WERE GENERALLY STRONG WITH TWO BIG DEFENSE CONTRACTORS REPORTING SHARP GAINS THAT REFLECTED MAJOR ACQUISITIONS MARTIN MARIETTA'S JUMP IN PROFIT WAS AIDED BY THE PURCHASE OF GENERAL ELECTRIC'S AEROSPACE DIVISION WHILE LOCKHEED'S EARNINGS GAIN WAS FUELED BY THE ACQUISITION OF GENERAL DYNAMICS'S JET FIGHTER DIVISION MCDONNELL DOUGLAS'S EARNINGS WHICH INCLUDED A ONETIME 57 MILLION GAIN RELATED TO UNUSUAL TAX AND ACCOUNTING ISSUES SOARED FROM A WEAK YEAREARLIER QUARTER BUT WHILE OPERATING EARNINGS FROM THE COMPANY'S MILITARYAIRCRAFT AND MISSILES AND SPACE UNITS INCREASED MCDONNELL'S COMMERCIALAIRPLANE REVENUE PLUNGED BOEING ALSO CONTINUED TO STRUGGLE BECAUSE OF THE WEAK AIRLINE INDUSTRY GENERAL DYNAMICS SHOWED A DECLINE IN NET INCOME AFTER BIG DIVESTMENTS BUT EARNINGS FROM CONTINUING OPERATIONS ROSE 25 EXCLUDING A SMALL ONETIME GAIN AMONG BIOTECHNOLOGY CONCERNS INCREASING PRODUCT REVENUE AND ROYALTIES RESULTED IN HUGE GAINS FOR GENENTECH AND BIOGEN BIOGEN SAYS GROWING ROYALTIES FROM HEPATITIS B VACCINE AND ALPHA INTERFERON SHOULD CONTINUE TO FUEL LONGTERM GROWTH BUT IT HAS CAUTIONED THAT SOME QUARTERLY SWINGS MAY OCCUR GENENTECH SAYS ITS PROFIT JUMP WAS DRIVEN BY INCREASED SALES OF THE HEART DRUG ACTIVASE THOUGH GENENTECH EXPECTS THAT GROWTH TO CONTINUE IT WARNS THAT AN EXPECTED LATESUMMER PAUSE IN HOSPITAL DRUG PURCHASES COULD HAVE SOME OFFSETTING EFFECT BANKS AGAIN POSTED STRONG PROFIT GROWTH HELPED BY LOWER COSTS ASSOCIATED WITH WRITING OFF BAD DEBT CONTINUED WIDE MARGINS BETWEEN BORROWING COSTS AND LENDING RATES AND STRENGTH IN CAPITAL MARKETS ACTIVITIES MOST BANKS REPORTED DOUBLEDIGIT PROFIT INCREASES OR BETTER DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS A BANK BROKERAGE FIRM SAYS THERE WERE CONCERNS THAT THE PROFITS PEAKED IN THE FIRST QUARTER BUT THE SECOND QUARTER IMPROVED ON THE FIRST A SURVEY OF 135 BANKS BY KEEFE REVEALS THAT THE INDUSTRY'S AVERAGE RETURN ON ASSETS WAS 116 IN THE SECOND QUARTER UP FROM 111 IN THE FIRST QUARTER WHILE CONCERNS HAVE MOUNTED ABOUT THE FUTURE SOURCE OF BANK EARNINGS THIRDQUARTER RESULTS ARE LIKELY TO BE THE SAME NET INTEREST MARGINS WILL PROBABLY NARROW SLIGHTLY BUT AT THE SAME TIME SOME BANKS ARE BEGINNING TO SEE LOAN GROWTH MANY THRIFTS CONTINUE TO SUFFER FROM THE LINGERING PROPERTY SLUMP AND THEIR UNUSUALLY WIDE OPERATING MARGINS ARE BEGINNING TO CONTRACT IN A MAJOR STEP TO TRIM BAD ASSETS HF AHMANSON ANNOUNCED THE BULK SALE OF 12 BILLION IN FORECLOSED HOMES WHICH TRIGGERED ITS HUGE LOSS GREAT WESTERN FINANCIAL IS MOVING MORE SLOWLY ON LIQUIDATIONS BUT PROBLEM ASSETS APPARENTLY PEAKED IN THE QUARTER SO THEIR DRAG ON EARNINGS IS EXPECTED TO DIMINISH GLENFED WHICH IS BEING PRESSED BY REGULATORS TO RAISE CAPITAL REPORTED A 3 DROP IN BAD ASSETS AND A 41 DECLINE IN ITS LOANLOSS CHARGE GOLDEN WEST FINANCIAL AND WASHINGTON FEDERAL HAVE ENCOUNTERED RELATIVELY FEW CREDIT PROBLEMS BUT GOLDEN WEST'S STRONG PROFIT GROWTH HAS STALLED SINCE RATES ON ITS MORTGAGE PORTFOLIO HAVE FALLEN CLOSER TO THE THRIFT'S COST OF FUNDS SECURITIES FIRMS RACKED UP FAT UNDERWRITING FEES AND COMMISSIONS AS CORPORATIONS SPURRED BY LOW INTEREST RATES AND STILLHIGH STOCK PRICES CAME TO MARKET WITH AN AVALANCHE OF NEW STOCKS AND BONDS SEVERAL FIRMS POSTED RECORD EARNINGS WHILE REGIONAL BROKERS ALSO JOINED THE PROFIT PARTY BY AND LARGE THEY DIDN'T REPORT THE DOUBLEDIGIT PERCENTAGE GAINS ENJOYED BY BIGGER FIRMS THE BOTTOMLINE DIFFERENCE WAS NOT ONLY IN TRANSACTION VOLUME BUT IN PROPRIETARY TRADING PROFITS SALOMON'S PROPRIETARY TRADING BUSINESS GENERATED 523 MILLION IN REVENUE FOR THE QUARTER THE SWAPS AND DERIVATIVES DESKS OF SOME OF THE BIGGER BROKERS WERE HUGE PROFIT CENTERS OTHER MONEYMAKERS INCLUDED INVESTMENT BANKING AND SALES OF PROPRIETARY MUTUAL FUNDS BUT THE RECORD PROFITS FOR THE INDUSTRY GENERALLY DIDN'T TRICKLE DOWN TO THE RANKANDFILE WHILE EARNINGS WENT THROUGH THE ROOF THE SECURITIES FIRMS KEPT A TIGHT LID ON COMPENSATION AND BENEFITS BROKERAGE HOUSE OFFICIALS ARE MINDFUL OF THE FACT THAT THE GOOD TIMES MAY NOT LAST FOREVER THE VOLUME OF UNDERWRITING IN THE SECOND QUARTER THOUGH STRONG SLIPPED BELOW THE FIRST QUARTER'S FURIOUS PACE MOST LOCAL PHONE COMPANIES REPORTED MODERATE GAINS AND MANY TOOK ADVANTAGE OF LOW INTEREST RATES TO REFINANCE DEBT WHILE LONGDISTANCE CARRIERS POSTED STRONG EARNINGS FOR THE LOCAL PHONE COMPANIES THE NUMBER OF CUSTOMER TELEPHONE LINES SHOWED A SLIGHT PICKUP PARTLY BECAUSE OF A GROWTH IN DEMAND BY BUSINESSES THE BABY BELLS AND GTE POSTED ROBUST GROWTH IN THEIR CELLULAR BUSINESSES THE GROWTH IN MINUTES OF USAGE HOWEVER REMAINED SLUGGISH IT DOESN'T SEEM LIKE WE'RE SEEING A MAJOR BUMP UP FROM THE EFFECT OF AN IMPROVING ECONOMY SAYS DANIEL REINGOLD AN ANALYST WITH MERRILL LYNCH BELLSOUTH'S EARNINGS INCLUDED A 55 MILLION CHARGE FOR REFINANCING DEBT BELL ATLANTIC'S 1992 SECOND QUARTER INCLUDED A 556 MILLION CHARGE FOR A MERGER AND DEBT REFINANCING U S WEST TOOK A 100 MILLION CHARGE FOR ITS PLANS TO EXIT THE FINANCIAL SERVICES BUSINESS AND A CHARGE OF 502 MILLION FOR DEBT REFINANCING MCI COMMUNICATIONS SAW A 13 JUMP IN TRAFFIC VOLUME AND SPRINT'S RESULTS WERE HELPED BY STRONG LOCAL TELEPHONE REVENUE AND CELLULAR SUBSCRIBER GROWTH 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 9308020133 930802 WHO'S NEWS GENCOR INDUSTRIES INC GENCOR INDUSTRIES INC ORLANDO FLA MARC G ELLIOTT 29 YEARS OLD WAS PROMOTED TO VICE PRESIDENT MARKETING OF THIS MAKER OF HIGHWAY CONSTRUCTION EQUIPMENT AND HEATING MATERIALS MR ELLIOTT MOST RECENTLY SERVED AS DIRECTOR OF SALES AND MARKETING ADMINISTRATION AND WILL RETAIN THOSE DUTIES UNDER HIS NEW ASSIGNMENT 9308020132 930802 INTERNATIONAL ITALY'S NONEC TRADE SURPLUS ROME ITALY'S FOREIGN TRADE ACCOUNT WITH NONEUROPEAN COMMUNITY COUNTRIES SWUNG TO A SURPLUS OF 1612 TRILLION LIRE 9987 MILLION IN JUNE FROM A DEFICIT OF 362 BILLION LIRE A YEAR EARLIER THE STATE STATISTICAL OFFICE ISTAT SAID THE JUNE SURPLUS LIFTED THE TRADE ACCOUNT WITH NONEC COUNTRIES FOR THE FIRST SIX MONTHS TO A SURPLUS OF 4227 TRILLION LIRE COMPARED WITH A DEFICIT OF 5108 TRILLION LIRE A YEAR EARLIER THE SURPLUS ALSO COMPARED WITH A MAY SURPLUS OF 1332 TRILLION LIRE ISTAT SAID THE STATISTICS ARE PROVISIONAL AND AREN'T SEASONALLY ADJUSTED THE LIRA VALUE OF IMPORTS FROM NONEC COUNTRIES ROSE 18 TO 8562 TRILLION LIRE IN JUNE FROM A YEAR EARLIER WHILE EXPORTS HELPED BY THE SHARP DEPRECIATION OF THE LIRA SINCE LAST YEAR'S EUROPEAN CURRENCY CRISIS SURGED 26 TO 10174 TRILLION LIRE 9308020131 930802 WHO'S NEWS DIEBOLD INC DIEBOLD INC CANTON OHIO ALBEN W WARF 54 YEARS OLD FORMERLY VICE PRESIDENT OF DEVELOPMENT AND MANUFACTURING FOR THE COMPANY AND ITS INTERBOLD JOINT VENTURE WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF INTERBOLD THE COMPANY'S AUTOMATIC TELLER MACHINE AND SELFSERVICE SYSTEMS JOINT VENTURE WITH INTERNATIONAL BUSINESS MACHINES CORP MR WARF SUCCEEDS GREGG A SEARLE 44 WHO WAS PROMOTED TO EXECUTIVE VICE PRESIDENT JULY 15 9308020130 930802 BOEING MAY CUT BACK OUTPUT FURTHER IF IT FAILS TO GET PART OF BIG SAUDI JOB BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO IS BRACING FOR POSSIBLE FURTHER CUTS IN JETLINER PRODUCTION DEPENDING LARGELY ON WHETHER IT LANDS A PIVOTAL ORDER FROM SAUDI ARABIA WITHIN THE NEXT MONTH OR SO THE GIANT SEATTLEBASED AIRCRAFT MAKER ALREADY IS ABOUT HALFWAY TO ITS PLANNED 45 OVERALL PRODUCTIONRATE CUT BY MID1994 NOW THE COMPANY IS CONSIDERING CUTTING PRODUCTION OF ITS 747 JUMBO JETS BY ANOTHER 33 ACCORDING TO PEOPLE FAMILIAR WITH PLANNING EXERCISES NOW UNDER WAY THE RATE ALREADY IS SLATED TO SLOW TO THREE JETLINERS A MONTH BY MID1994 FROM THE CURRENT FIVE AIRCRAFT MONTHLY BOEING IS SERIOUSLY EXAMINING A FURTHER MONTHLY SLOWDOWN TO TWO JETS A MONTH SOMETIME IN 1995 THE PEOPLE SAY THE COMPANY ALSO IS CONTEMPLATING SLOWING PRODUCTION OF ITS SMALLER 737 AIRLINERS BY AN ADDED 15 TO 30 DURING THE SAME TIME FRAME A BOEING SPOKESMAN ACKNOWLEDGED THAT THE COMPANY IS IN THE PROCESS OF REVIEWING ITS PRODUCTION RATES FOR THE FUTURE AND IS IN TALKS ON THE SUBJECT WITH EMPLOYEES SUPPLIERS AND CUSTOMERS HOWEVER HE SAID NO DECISIONS HAVE BEEN MADE FOR RATE CHANGES BEYOND THOSE ALREADY ANNOUNCED BUT THE PREPARATIONS AT BOEING SIGNAL THAT COMPANY PLANNERS' HOPES ARE FADING FOR A RECOVERY ANYTIME SOON AMONG RECESSIONWRACKED CARRIERS IN THE WESTERN WORLD THE COMPANY BEGAN TRIMMING RATES ABOUT A YEAR AGO AND IN JANUARY IT ANNOUNCED SWEEPING PRODUCTION CUTS FOR ALL ITS AIRCRAFT MODELS THAT WOULD PROMPT ABOUT 25000 JOB CUTS BY MID1994 MOST OF THOSE LOSSES ARE AT FACTORIES IN WASHINGTON STATE AND WICHITA KAN WHERE FURTHER RATE CUTS ALSO WOULD CAUSE THOUSANDS MORE JOBS TO BE LOST EQUALLY INDICATIVE OF THE SORRY STATE OF JETLINER MARKETS IS THAT THE IMPENDING ORDER FOR 60 OR MORE PLANES FROM THE GOVERNMENTRUN CARRIER SAUDIA HOLDS SUCH GREAT SWAY OVER BOEING'S NEARTERM FORTUNES BOEING AND ITS RIVALS AIRBUS INDUSTRIE OF EUROPE AND MCDONNELL DOUGLAS CORP HAVE BEEN JOUSTING HARD FOR MONTHS TO WIN THE LONGAWAITED ORDER WHICH COULD GROW AND BE WORTH AS MUCH AS 5 BILLION HIGHLY PLACED OFFICIALS OF SEVERAL GOVERNMENTS INCLUDING COMMERCE DEPARTMENT SECRETARY RON BROWN HAVE BEEN LOBBYING HARD FOR MANUFACTURERS IN THEIR COUNTRIES IN RECENT WEEKS HIGH CONFIDENCE THAT BOEING WOULD SWEEP MUCH OF THE ORDER HAS FADED AMONG IMPORTANT OFFICIALS BOEING NEEDS TO WIN SAUDIA'S ORDER FOR ABOUT SIX OF THE 440PASSENGER 747 JUMBO JETS TO HELP PRESERVE ITS PRODUCTION RATES SAID A PERSON FAMILIAR WITH THE SITUATION TE COMPANY STILL IS TRYING TO SHED TWO 747 JETLINERS WITH WHICH IT WAS SADDLED WHEN WINGS HOLDINGS INC'S NORTHWEST AIRLINES CANCELLED AN ORDER FOR FOUR OF THE AIRCRAFT LAST YEAR BOEING SAID PUBLICLY LAST WEEK THAT DEFERRALS FROM AIRLINES CONTINUE TO BE NEGOTIATED THE JETMAKER ALSO HAS BEEN TRYING TO WIN SAUDI ORDERS FOR ITS ADVANCED TWOENGINE HIGHCAPACITY 777 AIRLINER WHICH BEGINS DELIVERIES IN 1995 BUT THE COMPANY IS WIDELY BELIEVED TO HAVE RUN INTO SAUDI RESISTANCE TO FLYING LARGE NUMBERS OF PEOPLE FAR FROM LAND ON JUST TWO ENGINES THE FOURNATION AIRBUS CONSORTIUM HAS BEEN PITCHING ITS SIMILARLY SIZED FOURENGINE A340 AIRCRAFT WHILE MCDONNELL DOUGLAS IS PROPOSING ITS THREEENGINE MD11 THE SAUDI GOVERNMENT ALREADY HAS AGREED TO BUY AT LEAST TWO OF THE MD11 JETS FOR ITS ROYAL FLIGHT THE FLEET THAT HAULS HIGHLY PLACED GOVERNMENT OFFICIALS ACCORDING TO PEOPLE FAMILIAR WITH THE TRANSACTION BOEING ALSO FACES AN ESPECIALLY TOUGH FIGHT TO WIN SAUDIA'S ORDER FOR THE 150PASSENGER 737 IN COMPETITION WITH AIRBUS'S A320 AND MCDONNELL DOUGLAS'S MD90 FRENCH OFFICIALS HAVE SUGGESTED PUBLICLY DURING THE PAST FEW MONTHS THAT THEY EXPECT THE EUROPEAN AIRBUS CONSORTIUM TO CAPTURE AT LEAST 44 OF THE ORDERS FROM SAUDIA FOR ALL MODELS OF JETS AND BOTH US AND AIRBUS OFFICIALS HAVE SAID PRIVATELY THAT THE SAUDI CARRIER HAS RECOMMENDED TO ITS GOVERNMENT THAT IT PROCEED WITH A LARGEVOLUME PURCHASE OF A320S OR SLIGHTLY SMALLER A319 JETS AND SLIGHTLY LARGER A321 JETLINERS AS BOEING CONTEMPLATES FUTURE PRODUCTION RATE CUTS IT ALSO IS MONITORING SOME SMALL ORDERS STILL HANGING IN THE BALANCE INCLUDING A PENDING ORDER FOR ABOUT FOUR 737 JETS FROM THE FRENCH CARRIER AIR INTER 9308020129 930802 WHO'S NEWS CMS/DATA SAYS KANDEL WILL SUCCEED ABRAMS AS PRESIDENT SPECIAL TO THE WALL STREET JOURNAL TALLAHASSEE FLA CMS/DATA CORP DIDN'T RENEW THE CONTRACT OF ITS PRESIDENT PHILIP ABRAMS AND APPOINTED ITS VICE CHAIRMAN ANDREW KANDEL TO SUCCEED HIM MR KANDEL 43 YEARS OLD HAD SERVED AS PRESIDENT OF THE SOFTWARE AND COMPUTER SUPPLIER FOR FIVE YEARS UNTIL MR ABRAMS WAS HIRED IN JULY 1992 MR ABRAMS REACHED AT HIS HOME IN MCCLEAN VA SAID THERE WASN'T A COMPLETE MEETING OF THE MINDS ABOUT HOW THE COMPANY SHOULD BE RUN HE SAID HE HAS NO CURRENT PLANS FOR HIS NEXT POSITION MR KANDEL SAID HE TOOK A YEAR OFF AS PRESIDENT TO DIRECT THE COMPANY'S EXPANDED RESEARCH AND DEVELOPMENT EFFORTS BUT DECIDED TO RETURN TO THE POST WHEN SOME NEW PRODUCTS WERE RELEASED HE SAID THE COMPANY'S DECISION NOT TO RENEW MR ABRAMS'S CONTRACT REPRESENTED AN AMICABLE PARTING OF THE WAYS AND WASN'T A MATTER OF DISAGREEMENT OVER COMPANY MANAGEMENT QUARTEX CORP A TORONTOBASED SOFTWARE AND COMPUTER FIRM OWNS ABOUT A 70 STAKE IN CMS/DATA 9308020128 930802 PEERS & CO CHINESE ACCORD NEW YORK PEERS & CO AN INVESTMENT BANKING FIRM SAID IT CONCLUDED AN EXCLUSIVE AGREEMENT WITH A UNIT OF CHINA INTERNATIONAL TRUST & INVESTMENT CORP TO PROMOTE INVESTMENTS AND ACQUISITIONS IN CHINESE CONCERNS PEERS A UNIT OF LONGTERM CREDIT BANK OF JAPAN LTD SAID CHINA INTERNATIONAL IS THE INVESTMENT ARM OF THE CHINESE CENTRAL GOVERNMENT WHICH PROMOTES DIRECT FOREIGN INVESTMENT THROUGH JOINT VENTURES UNDER THE PACT PEERS AND THE CHINA INTERNATIONAL UNIT CITIC INTERNATIONAL TRUST AND INVESTMENT CORP WOULD ADVISE PRIMARILY US COMPANIES ON INVESTMENT AND ACQUISITION OPPORTUNITIES IN CHINA 9308020127 930802 JURG BUYS 70 OF POLISH PAPER NEW YORK SWITZERLAND'S PUBLISHING GROUP JURG MARQUARD SAID IT ACQUIRED MAJORITY OWNERSHIP OF THE MAJOR POLISH NEWSPAPER EXPRESS WIECZORNY TERMS OF THE PACT WEREN'T DISCLOSED JURG MARQUARD WHICH OWNS PUBLICATIONS IN HUNGARY RUSSIA AND OTHER EASTERN EUROPEAN COUNTRIES ACQUIRED A 70 STAKE IN THE NEWLY FORMED EXPRESS WIECZORNY LTD PUBLISHERS BASED IN WARSAW THE REMAINDER WAS BOUGHT BY FIBAK MARQUARD PRESS WHICH IS 50OWNED BY JURG MARQUARD 9308020126 930802 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS JOHN L SIMS WILL RETIRE AS VICE PRESIDENT FOR STRATEGIC RESOURCES EFFECTIVE FRIDAY MR SIMS MOST RECENTLY PLAYED A KEY ROLE IN DIGITAL'S REENTRY INTO SOUTH AFRICA HE SAID HE PLANS TO CONSULT FOR OTHER COMPANIES AFTER RETIREMENT ADVISING THEM ON POTENTIAL INVESTMENT STRATEGIES THROUGHOUT AFRICA MR SIMS 59 OVERSAW PERSONNEL ADMINISTRATION INFORMATION SYSTEMS AND OTHER FUNCTIONS HIS SUCCESSOR WASN'T IMMEDIATELY NAMED 9308020125 930802 UNEMPLOYMENT RISES TO 116 IN FRANCE JOBLESS SEEK BENEFITS SPECIAL TO THE WALL STREET JOURNAL PARIS THE NUMBER OF JOB SEEKERS IN FRANCE ROSE 14 OR 44600 TO 3185000 IN JUNE LEAVING THE UNEMPLOYMENT RATE AT 116 THE LABOR MINISTRY REPORTED FRIDAY THE LATEST UNEMPLOYMENT RATE IS ANOTHER POSTWORLD WAR II HIGH FROM THE PREVIOUS RATE OF 115 REGISTERED IN MAY IN A BRIEF COMMUNIQUE THE MINISTRY ALSO NOTED THAT THE NUMBER OF THOSE SEEKING LONGTERM EMPLOYMENT ROSE 18 IN JUNE THE MINISTRY ATTRIBUTED JUNE'S UNEMPLOYMENT RATE LARGELY TO AN INCREASE IN THE NUMBER OF NEW APPLICANTS FOR JOBLESS BENEFITS IN PREVIOUS MONTHS THE RATE PRIMARILY WAS DUE TO FEWER PEOPLE LEAVING THE BENEFITS SYSTEM THE MINISTRY POINTED OUT THAT THE NUMBER OF JOBLESS MEN ROSE 2 AMONG WOMEN THE INCREASE WAS 08 IT ADDED THAT YOUTHS REGISTERED A 34 RISE AMONG THE UNEMPLOYED THE MINISTRY ALSO SAID THE NUMBER OF JOB OFFERS IN JUNE ROSE 62 MOSTLY IN THE SERVICES SECTOR 9308020124 930802 WHO'S NEWS PLASTILINE INC PLASTILINE INC KNOXVILLE TENN JAMES H CHENEY 49 YEARS OLD RESIGNED AS A DIRECTOR OF THIS MAKER AND DESIGNER OF SIGNS MR CHENEY HAD SERVED ON THE BOARD SINCE 1980 AND HIS DEPARTURE REDUCES THE NUMBER OF DIRECTORS TO EIGHT HE WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CAPITAL BANK OF CALIFORNIA IN LOS ANGELES UNTIL JUNE 18 WHEN STATE AUTHORITIES CLOSED THE BANK BECAUSE IT WASN'T MEETING CAPITAL REQUIREMENTS 9308020123 930802 WHO'S NEWS ALCO STANDARD CORP ALCO STANDARD CORP VALLEY FORGE PA L BRUCE WILLIAMS 51 YEARS OLD WAS NAMED PRESIDENT OF THIS PAPER AND OFFICE PRODUCTS DISTRIBUTOR'S BUTLER PAPER CO UNIT A DENVER PAPER DISTRIBUTOR WITH ABOUT 1 BILLION IN ANNUAL REVENUE ARTHUR L BASCOMB 43 WILL SUCCEED MR WILLIAMS AS PRESIDENT OF ALCO'S SENECA PAPER CO UNIT A FORMER SENECA PRESIDENT MR BASCOMB MOST RECENTLY HEADED DISTRIBIX A MISSOURIBASED AFFILIATE OF ALCO'S PAPER CORP OF AMERICA BUSINESS 9308020122 930802 WHO'S NEWS SOUTHWESTERN BELL CORP SOUTHWESTERN BELL CORP SAN ANTONIO STEPHEN M CARTER 40 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS TELECOMMUNICATIONS CONCERN'S EQUIPMENT UNIT SOUTHWESTERN BELL TELECOM MR CARTER WAS PREVIOUSLY PRESIDENT OF THE UNIT'S FREEDOM PHONE DIVISION HE SUCCEEDS TOM E MORGAN 46 WHO WAS NAMED VICE PRESIDENT FOR SOUTHWESTERN BELL TELEPHONE CO'S DALLAS/FORT WORTH MARKET AREA THE TELECOM UNIT MARKETS TELECOMMUNICATIONS PRODUCTS AND SERVICES TO BUSINESS AND RESIDENTIAL CUSTOMERS 9308020121 930802 WHO'S NEWS CERADYNE INC CERADYNE INC COSTA MESA CALIF THE COMPANY SAID IT ELIMINATED THE POSITION OF CHIEF OPERATING OFFICER HELD BY ROBERT E KASSEL 66 YEARS OLD WHO RETIRED AS A RESULT OF THE CHANGE CERADYNE SAID MR KASSEL'S DISMISSAL WAS PART OF A COSTCUTTING RESTRUCTURING THAT INCLUDED AN ADDITIONAL SEVEN LAYOFFS FROM ITS 210PERSON WORK FORCE MOST OF THE DUTIES OF THE COO WERE ASSUMED BY THE COMPANY'S CHIEF EXECUTIVE OFFICER JOEL P MOSKOWITZ 51 AS OF JULY 26 9308020120 930802 WINNERS IN BIDDING FOR AUSTRALIA PAY TV FAIL TO MAKE PAYMENTS SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA WINNING BIDDERS FOR THE RIGHT TO DELIVER PAY TELEVISION BY SATELLITE IN AUSTRALIA HAVE FAILED TO MEET THE DEADLINE FOR PAYMENT THE AUSTRALIAN BROADCASTING AUTHORITY SAID TWO SMALL AND RELATIVELY UNKNOWN COMPANIES HI VISION LTD AND UCOM PTY LTD IN APRIL BEAT SEVERAL BIG PLAYERS INCLUDING NEWS CORP AND TIME WARNER INC BY BIDDING 212 MILLION AUSTRALIAN DOLLARS US144 MILLION AND A177 MILLION US120 MILLION RESPECTIVELY FOR LICENSES THE BROADCASTING AUTHORITY SAID THAT BECAUSE HI VISION AND UCOM HAVE FAILED TO COME UP WITH THE MONEY IT WILL CONTACT THE NEXT HIGHEST BIDDERS WHO WILL HAVE THREE BUSINESS DAYS TO PUT UP 5 OF THEIR BIDS HI VISION AND UCOM ARE THOUGHT TO HAVE MADE MULTIPLE BIDS VIA ASSOCIATED COMPANIES AND SO MAY STILL BE IN THE RUNNING FOR THE LICENSES IAN WRIGHT HI VISION CHAIRMAN SAID FRIDAY THAT HE EXPECTED HI VISION WILL BE ABLE TO MEET THE 5 DEPOSIT ON A SUBSEQUENT BID WITHIN THE TIME PROVIDED BY THE BROADCASTING AUTHORITY UCOM SAID FRIDAY THAT IF IT DOES NOT MEET THE DEADLINE IT LOOKS FORWARD WITH INTEREST TO THE ANNOUNCEMENT OF THE NEXT HIGHEST BID SAYING THERE MAY WELL BE SOME SURPRISES 9308020119 930802 TECHNOLOGY MYLAN GETS FDA APPROVAL PITTSBURGH MYLAN LABORATORIES INC SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MAKE AND MARKET THE ANTIDEPRESSANT NORTRIPTYLINE HYDROCHLORIDE THE GENERIC VERSION OF SANDOZ PHARMACEUTICALS' PAMELOR 9308020118 930802 SALANT'S REORGANIZATION IS SET NEW YORK SALANT CORP SAID ITS REORGANIZATION PLAN RECEIVED CONFIRMATION FROM US BANKRUPTCY COURT ALL MAJOR CREDITORS AND EQUITY HOLDERS OF THE APPAREL COMPANY HAD SUPPORTED THE PLAN SALANT WHICH HAS BEEN IN BANKRUPTCY COURT PROCEEDINGS FOR ABOUT THREE YEARS HAD A LOSS LAST YEAR OF 19 MILLION ON REVENUE OF 397 MILLION THE COMPANY MARKETS APPAREL UNDER BRAND NAMES SUCH AS PERRY ELLIS JOHN HENRY AND THOMSON 9308020117 930802 INTERNATIONAL SPAIN'S OUTPUT FELL IN MAY MADRID SPAIN'S INDUSTRIAL PRODUCTION INDEX DROPPED 42 IN MAY 1993 FROM MAY 1992 THE NATIONAL STATISTICS INSTITUTE SAID PRECISIONTOOL MANUFACTURING SAW THE SHARPEST YEARTOYEAR DROP FALLING 69 THE INSTITUTE SAID ENERGY PRODUCTION INCHED UP 02 IN MAY FROM THE YEARBEFORE MONTH WHILE PRODUCTION OF NONENERGETIC MINERALS AND CHEMICALS EASED 22 PRODUCTION OF INTERMEDIATE GOODS DROPPED 33 AND CONSUMERGOODS MANUFACTURING FELL 53 IN MAY 1993 FROM MAY 1992 9308020116 930802 MEDIQ DEBENTURE OFFERING PENNSAUKEN NJ MEDIQ INC SAID UNDERWRITERS EXERCISED AN OVERALLOTMENT OPTION TO PURCHASE AN ADDITIONAL 45 MILLION OF ITS 75 SUBORDINATED DEBENTURES MEDIQ WHICH PROVIDES PRODUCTS AND SERVICES TO HOSPITALS HOME CARE PROVIDERS AND NURSING HOMES RAISED 345 MILLION IN THE OFFERING THE DEBENTURES ARE EXCHANGEABLE INTO SHARES OF NUTRAMAX PRODUCTS INC OWNED BY MEDIQ NUTRAMAX MAKES HEALTHCARE AND PERSONALCARE PRODUCTS 9308020115 930802 WHO'S NEWS LONDON FOG SELECTS J CREW EXECUTIVE AS CHAIRMAN CEO ELDERSBURG MD LONDON FOG CORP A RETAILER OF OUTERWEAR TO DEPARTMENT AND SPECIALTY STORES HIRED A FORMER J CREW GROUP INC EXECUTIVE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARNOLD P COHEN 37 YEARS OLD WILL ASSUME THE NEW DUTIES IN EARLY SEPTEMBER AT THE J CREW CATALOG RETAILING OPERATION MR COHEN WAS RESPONSIBLE FOR CREATION OF THE RETAIL DIVISION AND INTERNATIONAL EXPANSION AT LONDON FOG HE SUCCEEDS MARK LIEBERMAN WHO RETIRED IN APRIL MR COHEN SAID HE JOINED LONDON FOG WHICH WAS PURCHASED BY MERRILL LYNCH CAPITAL PARTNERS IN 1990 TO GET A CHANCE TO OPERATE A BUSINESS WHERE I COULD HAVE SUBSTANTIAL INFLUENCE IN SHAPING ITS CULTURE MERRILL LYNCH CAPITAL PARTNERS A WHOLLY OWNED SUBSIDIARY OF MERRILL LYNCH & CO ACTS AS A GENERAL PARTNER FOR TWO LEVERAGED BUYOUT FUNDS LONDON FOG SAID IT EXPECTS SALES THIS YEAR TO INCREASE 12 TO ABOUT 350 MILLION 9308020114 930802 BUSINESS BRIEFS CODA ENERGY INC ACQUIRED OIL AND GAS PROPERTIES IN SOUTHWESTERN KANSAS FROM MOBIL CORP FOR 158 MILLION TREMONT CORP SOLD ITS BENTONITE MINING BUSINESS FOR 20 MILLION COLONIAL BANCGROUP WILL ACQUIRE FIRST AMFED CORP HUNTSVILLE ALA A SAVINGSANDLOAN HOLDING COMPANY FOR 45 MILLION IN STOCK PUBLIC SERVICE CO OF NEW MEXICO ORALLY AGREED TO SELL CERTAIN WATER UTILITY ASSETS TO THE CITY OF SANTA FE NM FOR ABOUT 48 MILLION MANATRON INC ACQUIRED ATEK INFORMATION SERVICES INC FOR AN UNDISCLOSED AMOUNT OF CASH AND STOCK JAMES RIVER CORP WILL CLOSE ITS FOLDING CARTON OPERATION IN MODESTO CALIF AFFECTING ABOUT 235 EMPLOYEES STANLEY WORKS A TOOLS AND HARDWARE MAKER ACQUIRED FRIESS & CO A GERMAN MAKER OF PAINT BRUSHES AND ROLLERS TERMS WEREN'T DISCLOSED 9308020113 930802 CALIFORNIA FEDERAL CEO AND EXOFFICER SUED BY THREE HOLDERS LOS ANGELES THREE STOCKHOLDERS SUED CALIFORNIA FEDERAL BANK AND A FORMER AND A PRESENT OFFICER IN FEDERAL COURT HERE ALLEGING THAT THEY FAILED TO PROPERLY DISCLOSE THE EXTENT OF THE BANK'S LOSSES THE COMPLAINT WHICH SEEKS CLASSACTION STATUS CHARGES THAT THE TROUBLED THRIFT CONSISTENTLY UNDERSTATED ITS NONPERFORMING LOANS AND FALSELY REPRESENTED THAT IT WAS MAKING SIGNIFICANT PROGRESS TOWARD REDUCING THEM THE SUIT ALSO ALLEGED THE BANK FALSELY STATED THAT PROFITS WOULD GROW THIS YEAR THE BANK ANNOUNCED LAST WEEK THAT IT HAD A LOSS OF 45 MILLION IN THE SECOND QUARTER AND WAS SUSTAINING CONTINUED LOSSES ON FORECLOSED REAL ESTATE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CALIFORNIA FEDERAL CLOSED FRIDAY AT 11375 DOWN 50 CENTS IN ADDITION TO THE BANK NAMED AS DEFENDANTS WERE FORMER CALIFORNIA FEDERAL CHAIRMAN JERRY ST DENNIS AND PRESIDENT AND CHIEF EXECUTIVE OFFICER WILLIAM CALLENDER MR ST DENNIS WAS OUSTED BY CALIFORNIA FEDERAL'S BOARD IN A MANAGEMENT SHAKEUP LAST WEEK MR CALLENDER ALSO WAS ASKED TO RESIGN BUT LATER AGREED TO STAY ON UNTIL NO LATER THAN YEAR'S END THE LAWSUIT SEEKS UNSPECIFIED DAMAGES CALIFORNIA FEDERAL COULDN'T IMMEDIATELY BE REACHED TO COMMENT 9308020112 930802 WHO'S NEWS COMPTEK RESEARCH INC COMPTEK RESEARCH INC BUFFALO NY WILLIAM T LENNON JR 57 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMPTEK TELECOMMUNICATIONS INC AND INDUSTRIAL SYSTEMS SERVICES INC UNITS OF THIS SUPPLIER OF ELECTRONIC AND DATA TELECOMMUNICATIONS SYSTEMS TO GOVERNMENT AND INDUSTRY WILL RETIRE FROM THE COMPANY AUG 27 FOR PERSONAL REASONS UNTIL A SUCCESSOR TO MR LENNON IS NAMED JOHN R CUMMINGS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY WILL SERVE AS ACTING PRESIDENT AND CHIEF EXECUTIVE OF THE TWO UNITS CHRISTOPHER A HEAD THE PARENT COMPANY'S EXECUTIVE VICE PRESIDENT WILL BE RESPONSIBLE FOR THE DAYTODAY OPERATIONS OF THE UNITS COMPTEK SAID MR LENNON WILL CONTINUE AS AN ADVISER TO THE COMPANY IN THE INTERIM 9308020111 930802 JAPAN HAS HEALTHCOST RECORD TOKYO KYODO JAPAN PAID A RECORD 208 TRILLION YEN 19533 BILLION IN GOVERNMENTFUNDED MEDICINE EXPENDITURES FOR THE FISCAL YEAR ENDED IN MARCH THE HEALTH AND WELFARE MINISTRY SAID THE AMOUNT UP 77 FROM THE PREVIOUS FISCAL YEAR EXCEEDED THE 20 TRILLIONYEN LEVEL FOR THE FIRST TIME IN THE HISTORY OF JAPAN'S SOCIAL SECURITY SYSTEM THE MINISTRY SAID THE GROWTH RATIO ITSELF REPRESENTED THE HIGHEST EVER OFFICIALS LINKED THE RECORD SPENDING TO THE RAPID AGING OF THE JAPANESE POPULACE AMID THE DWINDLING BIRTHRATE AS WELL AS AN AVERAGE 25 RISE IN MEDICAL FEES PAID TO HOSPITALS FROM GOVERNMENT COFFERS 9308020110 930802 TECHNOLOGY ZENITH ELECTRONICS TO SELL STOCK GLENVIEW ILL ZENITH ELECTRONICS CORP SAID IT AGREED TO SELL UP TO 12 MILLION ADDITIONAL SHARES REPRESENTING AS MUCH AS A 36 STAKE TO FLETCHER CAPITAL MARKETS INC UNDER AN AGREEMENT INITIALLY DISCLOSED IN MARCH THE NEW YORK INVESTMENT CONCERN IN MAY PAID JUST OVER 10 MILLION FOR 15 MILLION NEWLY ISSUED ZENITH SHARES THAT PURCHASE GAVE FLETCHER ITS CURRENT 46 STAKE IN THE TELEVISION MAKER ZENITH NOTED THAT THE PRICE FOR ITS SALE OF FROM 750000 TO 12 MILLION SHARES TO FLETCHER WILL BE BASED ON ITS STOCK PRICE DURING A SPECIFIED PERIOD AND SAID IT EXPECTS THE TRANSACTION SUBJECT TO CERTAIN CONDITIONS TO CLOSE IN ABOUT TWO MONTHS 9308020109 930802 CLEVELANDCLIFFS STRIKE CLEVELAND CLEVELANDCLIFFS INC SAID 2900 MEMBERS OF THE UNITED STEELWORKERS AT THREE OF ITS IRONORE MINES WENT ON STRIKE AFTER THEIR LABOR AGREEMENTS EXPIRED ON SATURDAY THE THREE MINES IN MICHIGAN AND MINNESOTA ACCOUNT FOR ABOUT TWOTHIRDS OF CLIFFS' PRODUCTION THE COMPANY WHICH SUPPLIES MOST MAJOR STEELMAKERS SAID IT HAS ADEQUATE RESERVES NO FURTHER TALKS HAVE BEEN SCHEDULED 9308020108 930802 STEELWORKERS REACH ACCORDS WITH 2 FIRMS UNION WINS REPRESENTATION ON BETHLEHEM STEEL NATIONAL STEEL BOARDS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH THE UNITED STEELWORKERS REACHED LABOR ACCORDS WITH BETHLEHEM STEEL CORP AND NATIONAL STEEL CORP THAT GIVE THE UNION BOARD REPRESENTATION AND JOB SECURITY IN EXCHANGE FOR VAST PRODUCTIVITY IMPROVEMENTS THE AGREEMENTS BRING THE UNION TWO BIG STEPS CLOSER TO ITS GOAL OF OVERHAULING LABOR RELATIONS IN THE STEEL INDUSTRY THE SETTLEMENTS REACHED THIS WEEKEND AS THE OLD CONTRACTS' JULY 31 EXPIRATION PASSED AVERTED STRIKES AT BETHLEHEM AND NATIONAL RESPECTIVELY THE NATION'S NO 2 AND NO 4 STEELMAKERS THE SIXYEAR ACCORDS ARE SIMILAR TO JUNE'S PACT WITH INLAND STEEL INDUSTRIES INC THEY GIVE NEARLY 18000 WORKERS AT THE TWO COMPANIES SMALL WAGE INCREASES AND BONUSES HEFTY PENSION IMPROVEMENTS AND A COSTSAVING PLAN FOR MANAGED HEALTH CARE THE CONTRACTS GIVE THE UNION ACCESS TO THE COMPANIES' BUSINESS PLANS AND MORTGAGES ON CERTAIN COMPANY PROPERTIES FOR THE FIRST TIME IN AN INTERVIEW YESTERDAY USW PRESIDENT LYNN R WILLIAMS PREDICTED THE STEELINDUSTRY ACCORDS WOULD ESTABLISH A TREND FOR OTHER INDUSTRIES OUR MEMBERS WILL HAVE UNPRECEDENTED ACCESS TO INFORMATION AND INFLUENCE IN THE FUTURE OF THESE ENTERPRISES HE SAID IT'S OUR HOPE THAT THIS CONTRIBUTES TO SETTING AN EXAMPLE OF THE WAY IN WHICH WE NEED TO DO THINGS IN AMERICA TO MOVE FORWARD IT DEMONSTRATES THAT COLLECTIVE BARGAINING IS FAR FROM DEAD OR PASSE MR WILLIAMS WHO WILL RETIRE NEXT FEBRUARY OUTLINED THE UNION'S AIMS MOST OF WHICH HAVE BEEN FULFILLED IN A NEW DIRECTIONS STRATEGY LAUNCHED AT THE BEGINNING OF THE YEAR THE UNION OFFERED LONGTERM CONTRACTS ITS OLD ONES WERE THREE OR FOUR YEARS AND REDUCTIONS IN STAFFING IN EXCHANGE FOR JOB SECURITY AND A SAY IN COMPANY MANAGEMENT THE AGREEMENTS PUT STRONG PRESSURE ON HOLDOUTS TO ADOPT SIMILAR PACTS ARMCO STEEL WHICH ALSO HAD AN AGREEMENT EXPIRING JULY 31 AGREED TO AN INDEFINITE EXTENSION OF ITS EXISTING AGREEMENT TALKS RESUME AUG 12 BUT BOTH SIDES CAN END THE EXTENSION WITH 72HOURS' NOTICE ARMCO STEEL A JOINT VENTURE BETWEEN ARMCO INC AND KAWASAKI STEEL CORP IS FAR FROM REACHING AN AGREEMENT FOR 2200 ACTIVE AND LAIDOFF WORKERS THOMAS GRAHAM THE COMPANY'S CHIEF EXECUTIVE IS AN OUTSPOKEN UNION OPPONENT WHO IS SEEKING VASTLY REDUCED EMPLOYMENT LEVELS USX CORP'S US STEEL ALSO FACES A SHOWDOWN WITH THE USW WHEN ITS CONTRACT EXPIRES JAN 31 THE INDUSTRY LEADER BALKED IN TALKS THIS YEAR AT GIVING THE UNION BOARD REPRESENTATION AND PARTICIPATION IN PRICING AND CAPITALEXPENDITURE DECISIONS LTV CORP MEANWHILE WILL NEGOTIATE A NEW CONTRACT NEXT JUNE CHRISTOPHER PLUMMER AN INDUSTRY CONSULTANT WITH RESOURCE STRATEGIES INC SAID IT WOULD BE DIFFICULT NOT TO FOLLOW SUIT NOW THAT THE UNION HAS SOLD ITS PLAN TO THREE COMPANIES A STRIKE WOULD BE PRETTY DEVASTATING HE SAID MR PLUMMER SAID THE ACCORDS SIGNAL THAT COMPANIES FINALLY ARE RESPONDING TO THREATS TO THE INDUSTRY INCLUDING THOSE FROM HUGE FINANCIAL OBLIGATIONS AND ATTACKS FROM EFFICIENT NONUNION MINIMILLS THIS IS DEFINITELY A MAJOR CHANGE HE SAID BOTH SIDES REALIZE THEY HAVE TO DO THINGS TO CUT COSTS AND IMPROVE PRODUCTIVITY OR NOBODY IS GOING TO HAVE A JOB MANAGEMENT OR LABOR COMPANY AND UNION SPOKESMEN DECLINED TO DISCUSS DETAILS BUT ACCORDING TO THOSE FAMILIAR WITH THE PLANS BETHLEHEM'S CONTRACT GIVES WORKERS SOMEWHAT MORE THAN INLAND'S BETHLEHEM WILL GRANT TWO 50CENT WAGE INCREASES ONE CONTINGENT ON PROFITS AVERAGING ABOUT 37 EACH AS WELL AS FOUR BONUSES OF 500 EACH BETHLEHEM ALSO IS SAID TO HAVE GRANTED A 5 INCREASE IN MONTHLY PENSION PAYMENTS FOR EACH YEAR OF SERVICE A 20 TO 25 INCREASE PARTICULARLY COSTLY FOR BETHLEHEM WHICH ALREADY HAS UNDERFUNDED PENSION PLANS HARRY LESTER A UNION NEGOTIATOR SAID NATIONAL'S WAGES WILL BE ABOUT THE SAME AS BETHLEHEM'S AND ITS PENSION PAYMENTS AS GOOD OR BETTER BOTH CONTRACTS CONTAIN PROVISIONS TO REOPEN TALKS ON WAGES AND BENEFITS AFTER THREE YEARS AND ALLOW THE UNION TO NOMINATE A BOARD MEMBER FOR THE FIRST TIME WORKERS ALSO WILL HAVE NOLAYOFF CLAUSES AND COOPERATIVE PARTNERSHIPS WITH MANAGEMENT WHICH REPRESENT A BIG SHIFT AT BETHLEHEM BUT A CONTINUATION OF NATIONAL'S EXISTING POLICY IN EXCHANGE THE UNION GAVE UP ITS FULLCOVERAGE HEALTH INSURANCE AND WILL EASE WORK RULES AND ALLOW UNSPECIFIED WORKFORCE CUTS THROUGH ATTRITION BETHLEHEM CHAIRMAN CURTIS H BARNETTE CALLED THE AGREEMENT A FAIR SETTLEMENT FOR ALL PARTIES WE THINK THE COST IS REASONABLE AND APPROPRIATE IN AN INTERVIEW MR BARNETTE SAID THE PACT WILL ENSURE AN UNINTERRUPTED SUPPLY OF STEEL TO OUR CUSTOMERS IMPROVE PRODUCTIVITY AND MANAGEMENT OF HEALTH CARE HELP REDUCE COSTS AND IMPROVE SECURITY FOR ALL EMPLOYEES NATIONAL'S VICE PRESIDENT FOR LABOR RELATIONS RICHARD COFFEE CALLED THE ACCORD A COMPETITIVE AGREEMENT HE SAID IT WILL FURTHER TAKE AWAY FEARS OF PRODUCTIVITY IMPROVEMENT 9308020107 930802 HUNGARIAN TELECONSTRUCTION NEW YORK SHARES OF HUNGARIAN TELECONSTRUCTION CORP TRADED AT A PREMIUM AFTER AN INITIAL OFFERING LATE LAST WEEK THE BUDAPESTBASED COMPANY SAID THE PROCEEDS FROM THE OFFERING WOULD BE USED TO FINANCE BUILD AND MAINTAIN LOCAL TELEPHONE EXCHANGES IN HUNGARY 9308020106 930802 ALLMERICA PROPERTY STATE MUTUAL LIFE MULL PLAN TO MERGE WORCESTER MASS ALLMERICA PROPERTY & CASUALTY COS SAID ITS BOARD IS REVIEWING A POSSIBLE MERGER WITH STATE MUTUAL LIFE ASSURANCE CO OF AMERICA WHICH OWNS 574 OF ALLMERICA'S COMMON STOCK ALLMERICA AN INSURANCE HOLDING COMPANY SAID THE POSSIBLE MERGER IS BEING CONSIDERED AS PART OF A PLAN OF DEMUTUALIZATION BY STATE MUTUAL ONE ALTERNATIVE WOULD BE THE FORMATION OF A NEW HOLDING COMPANY THAT WOULD OWN BOTH ALLMERICA AND STATE MUTUAL ALLMERICA SAID THE NEW COMPANY WOULD RAISE CAPITAL VIA A PUBLIC OFFERING OF STOCK AT THE TIME OF STATE MUTUAL'S DEMUTUALIZATION IT WOULD BE OWNED BY FORMER SHAREHOLDERS OF ALLMERICA AND POLICYHOLDERS OF STATE MUTUAL ALLMERICA SAID ALLMERICA SAID ITS BOARD NAMED A COMMITTEE OF DIRECTORS INDEPENDENT OF STATE MUTUAL TO MEET WITH STATE MUTUAL REPRESENTATIVES AND REVIEW STATE MUTUAL'S PROPOSALS REGARDING A MERGER OR CONSOLIDATION OF THE COMPANIES SEPARATELY STATE MUTUAL ALSO BASED IN WORCESTER SAID IT IS ACTIVELY PURSUING DEMUTUALIZATION WHICH ISN'T EXPECTED TO BE COMPLETED UNTIL THE SECOND HALF OF 1994 9308020105 930802 PARTIAL VICTORY FOR CANADIAN AIR'S PLAN TO SELL STAKE BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE FEDERAL COURT OF CANADA ORDERED THE COUNTRY'S COMPETITION TRIBUNAL TO RECONSIDER A DECISION STANDING IN THE WAY OF A PROPOSED PARTNERSHIP BETWEEN CANADIAN AIRLINES INTERNATIONAL LTD AND AMERICAN AIRLINES THE RULING WAS A PARTIAL VICTORY FOR FINANCIALLY TROUBLED CANADIAN AIRLINES A DIVISION OF PWA CORP CALGARY ALBERTA THE PROPOSED AGREEMENT IS CONSIDERED VITAL TO CANADIAN'S SURVIVAL THE PACT WOULD ALLOW AMR CORP THE PARENT OF AMERICAN TO BUY A ONETHIRD EQUITY INTEREST IN CANADIAN FOR 246 MILLION CANADIAN DOLLARS US191 MILLION THE AGREEMENT REQUIRES CANADIAN CANADA'S SECONDLARGEST AIRLINE TO WITHDRAW FROM A COMPUTERRESERVATION CONTRACT WITH GEMINI GROUP AUTOMATED DISTRIBUTION SYSTEMS INC OF TORONTO AND LINK UP WITH AMR'S SABRE COMPUTER NETWORK GEMINI IS SABRE'S MAIN COMPETITOR IN CANADA THE COMPETITION TRIBUNAL RULED EARLIER THIS YEAR THAT IT DOESN'T HAVE THE JURISDICTION TO FREE CANADIAN FROM ITS GEMINI CONTRACT WHICH DOESN'T EXPIRE FOR SEVERAL YEARS FRIDAY'S COURT RULING SET ASIDE THE TRIBUNAL'S DECISION AND ORDERED THE TRIBUNAL TO RECONSIDER THE MATTER CANADIAN AND AMR FORT WORTH TEXAS WELCOMED THE COURT'S RULING CANADIAN AIRLINES CHAIRMAN RHYS EYTON SAID IT WAS HIGHLY FAVORABLE BUT THE AGREEMENT HASN'T BEEN CLEARED THE COMPETITION TRIBUNAL COULD TAKE WEEKS OR MONTHS TO REVIEW ITS DECISION OR AIR CANADA WHICH HAS VIGOROUSLY OPPOSED CANADIAN'S WITHDRAWAL FROM GEMINI COULD APPEAL THE FEDERAL COURT RULING TO CANADA'S SUPREME COURT AN APPEAL WOULD FURTHER DELAY THE MATTER AN AIR CANADA SPOKESMAN SAID THE COMPANY IS CONSIDERING ITS OPTIONS PWA SAID SEPARATELY THAT ITS PROPOSED DEBTRESTRUCTURING PLAN WOULD REDUCE THE STAKE OF HOLDERS OF COMMON SHARES TO 72 EMPLOYEES WOULD HAVE 187 AND 741 WOULD GO TO CREDITORS AND PREFERRED SHAREHOLDERS EMPLOYEES WOULD PAY FOR THEIR STAKE BY INVESTING C200 MILLION OVER FOUR YEARS IF THE REST OF THE PLAN IS IMPLEMENTED CREDITORS AND PREFERRED SHAREHOLDERS WOULD SWAP C732 MILLION OF OBLIGATIONS FOR THEIR SHARES DOCUMENTS DESCRIBING THE PLAN SAID IT WOULD REDUCE THE COMPANY'S DEBT TO C8333 MILLION BY THE END OF THE YEAR ASSUMING AMR IS PERMITTED TO INVEST C246 MILLION IN PWA'S AIRLINE SUBSIDIARY A SPOKESMAN SAID PWA'S LONGTERM OBLIGATIONS TOTAL ABOUT C17 BILLION 9308020104 930802 BUSINESS BRIEF AETNA LIFE REPORTS 2NDQUARTER PROFIT AFTER YEARAGO LOSS HARTFORD CONN AETNA LIFE & CASUALTY CO REPORTED A SECONDQUARTER PROFIT COMPARED WITH A LOSS IN THE YEAREARLIER PERIOD BUT DESCRIBED THE RESULTS AS UNSATISFACTORY AND SAID IT WOULD CONTINUE TO MANAGE COSTS THE INSURANCE CONCERN SAID NET INCOME WAS 1461 MILLION OR 132 A SHARE COMPARED WITH A LOSS OF 452 MILLION OR 41 CENTS A SHARE THE YEAREARLIER PERIOD INCLUDED A REORGANIZATION CHARGE OF 96 MILLION OR 87 CENTS A SHARE AND A LOSS OF 30 MILLION OR 27 CENTS A SHARE ON A FINANCIAL GUARANTEE AETNA SAID RESULTS SO FAR THIS YEAR IN ITS CORE BUSINESS WERE ON TRACK WITH EXPECTATIONS FOR ALL OF 1993 HOWEVER RESULTS CONTINUE TO BE HURT BY WEAK COMMERCIAL REAL ESTATE MARKETS AETNA'S CHAIRMAN RONALD E COMPTON SAID THE COMPANY'S SHARES FELL 1625 TO 58375 IN NEW YORK STOCK EXCHANGE TRADING FRIDAY OVERALL REVENUE IN THE QUARTER ROSE 15 TO 433 BILLION FROM 426 BILLION BUT PREMIUMS WERE FLAT AT 269 BILLION RESULTS INCLUDED NET REALIZED CAPITAL LOSSES OF 3 MILLION OR THREE CENTS A SHARE IN THE LATEST QUARTER COMPARED WITH 41 MILLION OR 37 CENTS A SHARE A YEAR AGO AFTER GAINS AND LOSSES RELATED TO CERTAIN PENSION CONTRACT HOLDERS AETNA'S GROUP INSURANCE AND INDIVIDUAL LIFE OPERATIONS SHOWED IMPROVED EARNINGS AS DID ITS ANNUITIES BUSINESSES WHILE THE COMPANY POSTED A PROFIT FROM INVESTMENT GAINS ON FUTURES CONTRACTS IN THE LARGECASE PENSION BUSINESS THE BUSINESS CONTINUED TO BE HURT BY SLUGGISH COMMERCIAL REAL ESTATE MARKETS 9308020103 930802 GERMAN BHF BANK REPORTS SHARP RISE IN 1STHALF RESULTS SPECIAL TO THE WALL STREET JOURNAL FRANKFURT GERMANY'S BERLINER HANDELS UND FRANKFURTER BANK REPORTED A 23 JUMP IN SIXMONTH OPERATING PROFIT CITING NOTABLY BETTER INTEREST INCOME OPERATING PROFIT FOR THE HALF ROSE TO 148 MILLION MARKS 85 MILLION FROM YEAREARLIER 120 MILLION MARKS ON A 17 JUMP IN NET INTEREST INCOME TO 303 MILLION MARKS FROM 260 MILLION MARKS THE RESULTS WERE CALCULATED UNDER NEW ACCOUNTING RULES DEVELOPED BY THE EUROPEAN COMMUNITY THE BANKING GROUP ATTRIBUTED THE IMPROVEMENT TO GROWTH IN INTEREST INCOME AND TO CUTS IN ADMINISTRATIVE COSTS THE GROUP'S 9 RISE IN CREDIT VOLUME IN THE SIX MONTHS TO 435 BILLION MARKS 25 BILLION WAS DUE MAINLY TO LENDING RISES BY ITS DEUTSCHE HYPOTHEKENBANK AG AND BHFBANK INTERNATIONAL SA UNITS DEUTSCHE HYPOTHEKENBANK RAISED ITS LENDING VOLUME 11 TO 149 BILLION MARKS WHILE BHFBANK INTERNATIONAL INCREASED ITS LENDING ABOUT 800 MILLION MARKS BHFBANK SAID IT EXPECTS FOR THE FULL YEAR TO REPORT ONCE AGAIN A SATISFACTORY OVERALL RESULT FOR PARTIAL OPERATING PROFIT WHICH DOESN'T INCLUDE CERTAIN PROVISIONS HIGHER INTEREST INCOME AND FEE INCOME ARE EXPECTED FOR THE YEAR THE BANK SAID HOWEVER BHFBANK HEDGED ITS OUTLOOK FOR FULL OPERATING PROFIT SAYING IT WILL DEPEND SIGNIFICANTLY ON RISKPROVISION MEASURES THOSE PROVISIONS WILL BE BASED ON A CAREFUL EXAMINATION OF CONTINUED DIFFICULT ECONOMIC DEVELOPMENTS THE BANK SAID FRIDAY MARKED THE FIRST TIME BHFBANK REPORTED RESULTS UNDER NEW MORE TRANSPARENT ACCOUNTING METHODS STIPULATED BY THE EUROPEAN COMMUNITY THE NEW METHOD REQUIRES OPERATING RESULTS TO BE CALCULATED WITH PROVISIONS FOR DOUBTFUL LOANS AND SEVERAL OTHER ITEMS GERMAN BANKS ARE ALSO REPORTING THEIR LOANLOSS PROVISIONS FOR THE FIRST TIME AS NEW EC LAWS REQUIRE BHFBANK REPORTED A 16 INCREASE IN LOANLOSS PROVISIONS FOR THE RECENTLY ENDED HALF TO 67 MILLION MARKS FROM YEAREARLIER 58 MILLION MARKS 9308020102 930802 DIVIDEND NEWS PROPERTY TRUST OF AMERICA PROPERTY TRUST OF AMERICA SANTA FE NM SAID IT WILL MAKE A RIGHTS OFFERING OF 4422717 ADDITIONAL SHARES DISTRIBUTED AS A DIVIDEND EIGHT RIGHTS WILL ENTITLE THE HOLDER TO PURCHASE ONE SHARE OF PROPERTY TRUST A REAL ESTATE INVESTMENT TRUST THE OFFERING WILL BE MADE TO SHAREHOLDERS OF RECORD ON AUG 19 PROPERTY TRUST CURRENTLY HAS 35381735 SHARES OUTSTANDING PROPERTY TRUST SAID THE OFFERING IS SUBJECT TO SECURITIES AND EXCHANGE COMMISSION APPROVAL THE RIGHTS ARE EXPECTED TO BE ISSUED AUG 23 AND WILL EXPIRE AFTER ABOUT 25 DAYS THE TRUST SAID 9308020101 930802 POLITICS & POLICY KANTOR CRITICIZES JAPAN'S SUPERCOMPUTER PURCHASES WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR CRITICIZED JAPAN FOR NOT PICKING US SUPERCOMPUTERS IN FOUR RECENT GOVERNMENT PURCHASES IN A FURTHER EFFORT TO PRESSURE THE JAPANESE TO OPEN THEIR MARKETS MR KANTOR SAID THE FAILURE TO BUY AMERICAN HAS POTENTIALLY SERIOUS IMPLICATIONS FOR A REVIEW OF JAPANESE GOVERNMENT SUPERCOMPUTER PURCHASES THAT THE US STARTED IN APRIL MR KANTOR SAID THE RESULTS RAISE GRAVE CONCERNS ABOUT WHETHER TOKYO IS COMPLYING WITH A 1990 BILATERAL PACT IN WHICH JAPAN OPENED ITS PROCUREMENT OF SUPERCOMPUTERS TO FOREIGN BIDDERS US COMPANIES HAVE WON ONLY THREE OUT OF 15 SUPERCOMPUTER BIDS SINCE THE AGREEMENT WAS SIGNED ACCORDING TO THE TRADE REPRESENTATIVE'S OFFICE AND NONE OF THOSE SALES WAS IN HEADTOHEAD COMPETITION WITH A JAPANESE MACHINE GOVERNMENT PROCUREMENT IS AN IMPORTANT ISSUE IN THE BILATERAL TRADE TALKS THE COUNTRIES HAVE BEEN HOLDING OVER DEVISING A FRAMEWORK FOR USJAPANESE TRADE RELATIONS CRAY RESEARCH INC OF MINNEAPOLIS SAID IT BID ON THREE OF THE FOUR CONTRACTS CITED THE SUPERCOMPUTER MAKER HAS LONG BEEN BATTLING TO BREAK INTO THE JAPANESE MARKET A JAPANESE EMBASSY OFFICIAL DEFENDED JAPAN'S GOVERNMENT PROCUREMENT SYSTEM AND SAID THE FAILURE OF A US COMPANY TO WIN A CONTRACT ISN'T NECESSARILY THE FAULT OF THE BIDDING PROCESS 9308020100 930802 ELDERS MAY ENCOUNTER TOUGH FIGHT IN SENATE DESPITE PANEL'S ACTION WASHINGTON DESPITE HER EASY APPROVAL BY THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE JOYCELYN ELDERS PRESIDENT CLINTON'S NOMINEE FOR SURGEON GENERAL FACES A FIGHT ON THE SENATE FLOOR HER CONFIRMATION SEEMS VIRTUALLY CERTAIN IN A BODY WHERE THE DEMOCRATS HOLD A 5644 MAJORITY BUT REPUBLICANS ARE PUSHING TO DELAY A VOTE UNTIL SEPTEMBER WHEN CONGRESS RETURNS FROM ITS SUMMER RECESS THE COMMITTEE VOTE WAS 134 THREE REPUBLICANS JOINED ALL THE COMMITTEE'S DEMOCRATS IN SUPPORT OF THE FORMER DIRECTOR OF THE ARKANSAS HEALTH DEPARTMENT FOUR REPUBLICANS VOTED AGAINST HER DEMOCRATS APPEAR LIKELY TO ACHIEVE THE 60 VOTES NEEDED TO HEAD OFF A FILIBUSTER BUT REPUBLICAN SENATORS WERE HOPING TO TAKE ADVANTAGE OF OTHER SENATE RULES TO FORESTALL THE NOMINATION THE SENATE HAS A HUGE AMOUNT OF BUSINESS TO TEND TO BEFORE IT RECESSES INCLUDING THE MASSIVE DEFICITREDUCTION BILL AND 13 APPROPRIATION BILLS AND DEBATE ON DR ELDERS COULD TAKE THREE DAYS BUT LABOR COMMITTEE CHAIRMAN EDWARD KENNEDY D MASS VOWED TO PUSH FOR FINAL ACTION ON DR ELDERS BEFORE CONGRESS LEAVES TOWN AFTER ALL SHE HAS BEEN THROUGH IT WOULD BE UNCONSCIONABLE TO DELAY HER CONFIRMATION UNTIL SEPTEMBER HE SAID DR ELDERS A 59YEAROLD PEDIATRIC ENDOCRINOLOGIST HAS BEEN ATTACKED BY CONSERVATIVES FOR HER SUPPORT OF ABORTION SCHOOL HEALTH CLINICS THAT PROVIDE CONDOMS AND SEX EDUCATION CLASSES IN THE EARLY GRADES CRITICS ALSO HAVE RAISED QUESTIONS ABOUT ISSUES INVOLVING HER PERSONAL FINANCES INCLUDING HER HUSBAND'S FAILURE TO PAY SOCIAL SECURITY TAXES FOR A HOME NURSE HE EMPLOYED TO CARE FOR HIS AILING MOTHER 9308020099 930802 FINANCING BUSINESS BEVERLY ENTERPRISES INC BEVERLY ENTERPRISES INC FORT SMITH ARK SAID IT SOLD 27 MILLION SHARES OF A NEW SERIES OF 275 CUMULATIVE CONVERTIBLE EXCHANGEABLE PREFERRED STOCK AT AN INITIAL PRICE OF 50 A SHARE ABOUT 100 MILLION OF THE PROCEEDS WILL BE USED TO REDEEM THE COMPANY'S CUMULATIVE CONVERTIBLE PREFERRED STOCK CURRENTLY HELD BY A WHOLLY OWNED SUBSIDIARY OF STEPHENS GROUP THE NURSINGHOME OPERATOR GRANTED UNDERWRITERS AN OPTION TO PURCHASE AS MANY AS 300000 ADDITIONAL SHARES THE OFFERING WAS MANAGED BY MERRILL LYNCH PIERCE FENNER & SMITH INC STEPHENS INC AND JP MORGAN SECURITIES INC 9308020097 930802 AMERICAN AIR UNION HOPES FOR ACCORD BY LABOR DAY DALLAS THE FLIGHT ATTENDANTS UNION OF AMERICAN AIRLINES SAID IT STILL HASN'T REACHED AN AGREEMENT ON A NEW CONTRACT WITH MANAGEMENT BUT IS AIMING FOR AN ACCORD BY LABOR DAY THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS WHICH REPRESENTS 21000 WORKERS AT AMERICAN SAID IT SEEKS WAGE PARITY WITH ATTENDANTS AT UNITED AIR LINES AND DELTA AIRLINES THE UNION SAID IT WAS RESISTING CALLS FROM AMERICAN A SUBSIDIARY OF AMR CORP FOR HEALTH AND RETIREMENT GIVEBACKS UNION OFFICIALS ALSO SAID THEY WERE READY TO CALL A STRIKE AND WERE PREPARING FOR THAT OPTION BUT AIRLINE FLIGHT ATTENDANTS ARE COVERED BY FEDERAL LAW THAT PROHIBITS A STRIKE WITHOUT A 30DAY COOLINGOFF PERIOD CALLED BY A FEDERAL MEDIATOR ALSO THE MEDIATOR IN THE TALKS CAN ORDER BOTH SIDES BACK TO THE TABLE IF THEY DON'T REACH AN ACCORD BY LABOR DAY 9308020096 930802 WESTERN MINING SAYS ABORIGINAL TRIBE MADE A TITLE CLAIM ON LAND SPECIAL TO THE WALL STREET JOURNAL MELBOURNE AUSTRALIA WESTERN MINING CORP SAID AN ABORIGINAL TRIBE MADE A TITLE CLAIM OVER LAND NEAR ITS ROXBY DOWNS URANIUM MINE IN SOUTH AUSTRALIA HUGH MORGAN WESTERN MINING MANAGING DIRECTOR SAID IN A STATEMENT THAT THE LAND CLAIM HAS BEEN MADE AGAINST THE FEDERAL AND SOUTH AUSTRALIAN STATE GOVERNMENTS BY THE ARABUNNA TRIBE MR MORGAN SAID THE LAND AFFECTED BY THE CLAIM HOLDS A PIPELINE THAT SUPPLIES ALL THE WATER REQUIREMENTS FOR THE COMPANY'S ROXBY DOWNS MINE IT IS UNCLEAR WHETHER THE CLAIM EXTENDS TO THE FREEHOLD LAND WHICH COVERS THE ENTIRE OLYMPIC DAM PROJECT AND THE TOWN OF ROXBY DOWNS MR MORGAN SAID THE CLAIM BY THE ARABUNNA TRIBE IS ONE OF SEVERAL THAT CAME IN THE WAKE OF A HIGH COURT DECISION IN JUNE 1992 THAT RECOGNIZED A FORM OF NATIVE LAND TITLE DOES EXIST THE MINING AND FARMING COMMUNITY FEAR THIS RULING THE MABO DECISION WILL SPARK ABORIGINAL LAND CLAIMS OVER MINING OR RURAL AREAS SERIOUSLY THREATENING THE SECURITY OF LEASEHOLD LAND TITLES MR MORGAN WAS COMMENTING ON WESTERN MINING'S FISCAL FOURTHQUARTER PRODUCTION FIGURES WHICH SHOWED MIXED RETURNS FROM THE COMPANY'S NICKEL AND GOLD OPERATIONS WESTERN MINING'S NICKEL OUTPUT IN THE FISCAL YEAR ENDED JUNE 30 WAS GENERALLY HIGHER WITH PRODUCTION AT THE KAMBALDA MINE IN WESTERN AUSTRALIA UP 20 TO 328 MILLION METRIC TONS FROM 273 MILLION TONS A YEAR EARLIER THIS RISE OFFSET DECLINING OUTPUT AT THE COMPANY'S LEINSTER MINE ALSO IN WESTERN AUSTRALIA WHERE NICKEL PRODUCTION FELL TO 206 MILLION TONS FROM 215 MILLION TONS A YEAR EARLIER THE COMPANY SAID THE OVERALL INCREASE IN NICKEL PRODUCTION RESULTED FROM HIGHER ORE GRADES AND BETTER RECOVERIES AT THE PROCESSING MILLS URANIUM PRODUCTION AT ROXBY DOWNS WAS RELATIVELY UNCHANGED FROM THE YEAREARLIER LEVEL AT 1370 TONS OF URANIUM OXIDE THE RECOVERY OF COPPER AND GOLD INCREASED AT THE ROXBY DOWNS MINE WHILE SILVER PRODUCTION FELL 9308020095 930802 FINANCING BUSINESS MEDIPLEX GROUP INC MEDIPLEX GROUP INC WELLESLEY MASS SAID IT COMPLETED AN OFFERING OF 1250000 COMMON SHARES AT 25125 EACH AND 75 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 THE LEAD UNDERWRITER FOR THE OFFERINGS WHICH RAISED ABOUT 106 MILLION WAS NATWEST SECURITIES LTD MEDIPLEX SAID PROCEEDS WILL BE USED TO ADD MORE THAN 1300 BEDS TO THE COMPANY'S SKILLED NURSING/VENPLEX SERVICES UNIT THE HEALTH CARE SERVICES CONCERN SAID THE COMPANY SAID ABRAHAM D GOSMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALSO SOLD 14 MILLION SHARES OF THE COMPANY'S COMMON THAT HE OWNED AFTER THE OFFERING MEDIPLEX HAS ABOUT 95 MILLION COMMON SHARES OUTSTANDING ABOUT 25 OWNED BY MR GOSMAN 9308020094 930802 FINANCING BUSINESS AMERICAN FINANCIAL ENTERPRISES INC AMERICAN FINANCIAL ENTERPRISES INC CINCINNATI MADE A SECONDARY PUBLIC OFFERING OF 44 MILLION COMMON SHARES OF PENN CENTRAL CORP AT 3525 A SHARE OF WHICH 39 MILLION SHARES ARE BEING OFFERED IN THE US AND 500000 SHARES ARE BEING OFFERED IN OTHER COUNTRIES THE HOLDING COMPANY ALSO GRANTED AN OVERALLOTMENT OPTION TO THE UNDERWRITERS FOR AN ADDITIONAL 660000 SHARES THE NET PROCEEDS TO AFEI AFTER THE UNDERWRITING DISCOUNT WILL BE ABOUT 149 MILLION OR 171 MILLION IF THE OVERALLOTMENT OPTION IS EXERCISED IN FULL THE COMPANY SAID IT WILL USE A PORTION OF THE SALE'S PROCEEDS TO REDEEM NOTES 9308020093 930802 FINANCING BUSINESS TRIANGLE CORP TRIANGLE CORP STAMFORD CONN SAID THAT 147 MILLION OF ALMOST 15 MILLION OF ITS 1375 SENIOR SUBORDINATED DEBENTURES WERE TENDERED UNDER AN OFFER THAT EXPIRED THURSDAY THE COMPANY ALSO SAID IT SUCCESSFULLY SOLICITED CONSENTS TO CERTAIN AMENDMENTS TO THE INDENTURE GOVERNING THE DEBENTURES AND TO A PROPOSED SALE OF CERTAIN ASSETS THE OFFER AND SOLICITATION ARE PART OF A PLAN TO SELL TRIANGLE'S HANDTOOL HORSESHOE AND FARRIERTOOL BUSINESSES TO COOPER INDUSTRIES INC OF HOUSTON FOR 324 MILLION TRIANGLE ALSO IS A MAKER OF AEROSOL AND SERVICE CHEMICALS 9308020092 930802 GRUMMAN FACES CRIMINAL PROBE BILLINGS INVOLVED OVERCHARGING OF NASA IS ALLEGED ELIGIBILITY FOR CONTRACTS AT STAKE BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL GRUMMAN CORP IS UNDER CRIMINAL INVESTIGATION FOR ALLEGEDLY OVERCHARGING THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BY AS MUCH AS 8 MILLION AND THE PROBE THREATENS THE COMPANY'S ELIGIBILITY FOR NEW FEDERAL CONTRACTS THE INVESTIGATION OF GRUMMAN'S DATA SYSTEMS UNIT WHICH HASN'T BEEN DISCLOSED BY THE CONTRACTOR OR FEDERAL PROSECUTORS RAISES THE PROSPECT OF CRIMINAL CHARGES AGAINST THE CONCERN ON TWO SEPARATE FRONTS THE NASARELATED INVESTIGATION INVOLVES COMPUTERS PROVIDED FOR NASA'S JOHNSON SPACE CENTER IN HOUSTON ACCORDING TO GOVERNMENT AND INDUSTRY OFFICIALS SENIOR OFFICIALS AT THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION ARE REVIEWING RECOMMENDATIONS FROM PROSECUTORS TO SEEK FELONY CHARGES AGAINST THE COMPANY STEMMING FROM THE NASA BILLINGS LAWENFORCEMENT AND INDUSTRY SOURCES SAID BUT THE POTENTIAL FALLOUT FOR GRUMMAN THE NATION'S 10THLARGEST DEFENSE CONTRACTOR EXTENDS FAR BEYOND THE WORK THE BETHPAGE NY COMPANY DID FOR THE SPACE AGENCY UNLESS IN THE NEAR FUTURE THE COMPANY'S LAWYERS ARE ABLE TO HAMMER OUT A COMPREHENSIVE SETTLEMENT OF ALL CRIMINAL AND CIVIL CLAIMS PENDING AGAINST GRUMMAN THE COMPANY COULD FACE CRIMINAL SANCTIONS FOR ITS NASA WORK AS WELL AS PENTAGON CONTRACTS STRETCHING BACK TO THE LATE 1980S GRUMMAN DECLINED TO COMMENT ON THE ONGOING NEGOTIATIONS BUT GOVERNMENT AND INDUSTRY OFFICIALS SAID THE TALKS ARE APPROACHING A CLIMAX THE JUSTICE DEPARTMENT HAS RATCHETED UP PRESSURE BY TELLING THE COMPANY THAT IT IS READY TO PROCEED ALONG BOTH TRACKS PROSECUTORS ARE CONSIDERING SEEKING FELONY CHARGES COVERING NOT ONLY GRUMMAN'S DEALINGS WITH NASA BUT WRONGDOING INVOLVING THE EARLIER NAVY CONTRACTS AND INFLUENCEPEDDLING BY FORMER GRUMMAN CHAIRMAN JOHN O'BRIEN IN ADDITION PEOPLE INVOLVED IN THE CASE SAID OVER THE WEEKEND THAT THE NAVY HAS THREATENED TO BEGIN ADMINISTRATIVE ACTION TO SUSPEND OR BAR THE COMPANY FROM FUTURE CONTRACTS IF AN OVERALL SETTLEMENT ISN'T NEGOTIATED IN THE NEXT FEW WEEKS A NASA SPOKESMAN CONFIRMED THAT THE AGENCY'S INSPECTOR GENERAL IS PARTICIPATING IN AN INVESTIGATION WITH THE JUSTICE DEPARTMENT FOCUSING ON GRUMMAN'S ALLEGED MISCHARGING ON A NASA CONTRACT BESIDES SUPPLYING COMPUTERS FOR NASA GRUMMAN HAS BEEN WORKING ON A 1 BILLION CONTRACT AS THE PRIMARY ENGINEERING INTEGRATOR FOR THE SPACE STATION THE UNIT'S COMPUTERS MAY BE USED AMONG OTHER THINGS FOR WORK RELATED TO THE STATION WHATEVER THE FINAL RESOLUTION THE NASA INVESTIGATION ALREADY HAS HAMPERED GRUMMAN'S EFFORTS TO PUT THE LONGPENDING NAVY ISSUES BEHIND IT AS REPORTED EARLIER GRUMMAN MONTHS AGO REACHED A TENTATIVE AGREEMENT WITH THE US ATTORNEY'S OFFICE IN BROOKLYN NY TO PAY ABOUT 20 MILLION TO SETTLE THE NAVY CASE WHILE AVOIDING CRIMINAL CHARGES BUT NOW THE COMPANY'S INSISTENCE THAT IT WON'T SIGN THE PROPOSED SETTLEMENT UNLESS IT ALSO MANAGES TO AVOID CRIMINAL CHARGES ON THE NASA CLAIMS HAS PUT THE ENTIRE MATTER IN LIMBO LAST FALL MR O'BRIEN BECAME THE HIGHEST RANKING INDUSTRY FIGURE CONVICTED IN THE NATIONWIDE PENTAGON CORRUPTION INVESTIGATION DUBBED OPERATION ILL WIND AT THE TIME PROSECUTORS ASSERTED THAT MR O'BRIEN AND HIS FORMER CONFIDANT DECEASED LONG ISLAND BUSINESSMAN AND LOBBYIST JAMES KANE INTIMIDATED GRUMMAN SUPPLIERS INTO CONTRIBUTING TO CERTAIN POLITICAL CAMPAIGNS DURING MR O'BRIEN'S TENURE AT GRUMMAN ACCORDING TO COURT FILINGS THE COMPANY'S PURCHASING SYSTEM WAS SYSTEMATICALLY CORRUPTED AND BOGUS OR SOLESOURCE CONTRACTS WITH SUBCONTRACTORS WERE ROUTINELY PASSED ON TO THE PENTAGON FOR PAYMENT THE STEPPEDUP NASA PROBE POSES A DILEMMA FOR THE COMPANY THE NAVY AND JUSTICE DEPARTMENT COULD DEMAND THAT GRUMMAN ADHERE TO THE PREVIOUSLY NEGOTIATED CIVIL SETTLEMENT COVERING NAVY CONTRACTS WHICH OBLIGATES THE CONTRACTOR TO SET UP A HOST OF NEW ANTICORRUPTION AND INTERNAL ETHICS RULES OR THE GOVERNMENT COULD DECIDE THAT THE COMPANY IS DRAGGING ITS FEET PROMPTING PROSECUTORS TO SEEK TWO SEPARATE INDICTMENTS IN THAT EVENT GRUMMAN WOULD LOSE ITS BID TO KEEP EMBARRASSING WIRETAPS AND OTHER INFORMATION ABOUT THE COMPANY'S POLITICAL ACTIVITIES FROM BECOMING PUBLIC AND THE NAVY MIGHT HAVE LITTLE CHOICE BUT TO CONSIDER CUTTING OFF AT LEAST SOME GRUMMAN UNITS FROM ADDITIONAL BUSINESS 9308020091 930802 ABREAST OF THE MARKET TURMOIL COULD BOOST EUROPEAN STOCKS BUT DOLLAR'S RISE MAY ERASE ALL GAINS BY DOUGLAS R SEASE AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE TURMOIL IN EUROPEAN CURRENCY MARKETS HOLDS THE POTENTIAL FOR VAST REWARDS FOR US INVESTORS WILLING TO BET HEAVILY IN EUROPEAN STOCK MARKETS BUT BEWARE THE RESURGENT DOLLAR IT COULD COST YOU ALL YOUR GAINS AND MORE ANALYSTS IN THE US AND ABROAD SAY THE CHAOS IN EUROPE'S EXCHANGE RATE MECHANISM MAY CULMINATE IN THE MECHANISM'S COLLAPSE OR SUSPENSION ALREADY IT HAS LED TO AN AGREEMENT ANNOUNCED EARLY THIS MORNING IN BRUSSELS TO WIDEN THE AMOUNTS BY WHICH MOST CURRENCIES IN THE ERM ARE ALLOWED TO FLUCTUATE IN ANY CASE THE TURMOIL IS EXPECTED TO ULTIMATELY FREE INDIVIDUAL EUROPEAN COUNTRIES TO PURSUE THEIR OWN ECONOMIC POLICIES INDEPENDENTLY OF ONE ANOTHER THAT MEANS THAT NATIONS MIRED IN RECESSION ESPECIALLY FRANCE CAN LOWER INTEREST RATES IN AN EFFORT TO STIMULATE THEIR MORIBUND ECONOMIES SUCH MOVES PROMISE TO TOUCH OFF SHARP RALLIES IN STOCK AND BOND MARKETS OF SEVERAL EUROPEAN COUNTRIES MANY ANALYSTS AGREE THAT THE POTENTIAL GAINS IN EUROPEAN STOCKS IN THE NEXT 12 MONTHS ON THE ORDER OF 15 TO 20 WILL EASILY ECLIPSE THE PROFITS TO BE MADE IN US STOCKS EUROPE IS A GREAT OPPORTUNITY PROCLAIMS ARTHUR MICHELETTI CHIEF MARKET STRATEGIST AT BAILARD BIEHL & KAISER AND A LONGTIME BULL ON EUROPEAN STOCKS AND BONDS THERE'S GOING TO BE A LOT MORE OPPORTUNITY TO MAKE MONEY IN EUROPE THAN THERE WILL BE IN THE UNITED STATES MR MICHELETTI SAYS US STOCKS MAY GAIN MARGINALLY ON THE PROSPECTIVE EUROPEAN ECONOMIC RECOVERY BUT OVERALL THE US STOCK MARKET IS BEING HELD HOSTAGE BY BUDGET NEGOTIATIONS AND OTHER DOMESTIC CONCERNS EUROPEAN RECOVERY IS NOT GOING TO BE THE DRIVING FACTOR BEHIND THE US STOCK MARKET HE SAYS BUT FOR US INVESTORS RIDING THE EUROPEAN RALLIES ISN'T WITHOUT RISK SPECIFICALLY CURRENCY RISK SO FAR THIS YEAR EUROPEAN STOCK MARKETS HAVE CLIMBED BY VARYING AMOUNTS AND AMERICAN INVESTORS WHO HAD THE FORESIGHT TO GET INTO EUROPEAN STOCKS EARLY HAVE SHARED IN MOST OF THOSE GAINS BUT THE DOLLAR HAS RISEN AGAINST MOST EUROPEAN CURRENCIES THIS YEAR IN EFFECT CUTTING INTO THE RETURNS THAT AMERICAN INVESTORS REAPED IN THE STOCK MARKETS FOR INSTANCE GERMAN INVESTORS HAVE ENJOYED GAINS OF 1623 MEASURED BY THE DOW JONES WORLD STOCK INDEX WHILE A US INVESTOR CAPTURED ONLY 816 THE DIFFERENCE REPRESENTING THE DOLLAR'S GAIN AGAINST THE MARK NOW THOUGH ANALYSTS WARN THAT THE DOLLAR IS LIKELY HEADED EVEN HIGHER ESPECIALLY AGAINST THE CURRENCIES OF EUROPEAN NATIONS INTENT ON CUTTING THEIR INTEREST RATES ALL OTHER THINGS BEING EQUAL FALLING RATES TEND TO MAKE A COUNTRY'S CURRENCY LESS VALUABLE SOME ANALYSTS ARE PREDICTING THAT THE DOLLAR WILL RISE 10 OR MORE AGAINST EUROPEAN CURRENCIES IN THE NEXT YEAR EFFECTIVELY WIPING OUT AN EQUAL AMOUNT OF GAINS IN THOSE STOCK MARKETS THE DOLLAR IS CLEARLY GOING UP 10 OVER THE NEXT YEAR SAYS RICHARD DAVIDSON A EUROPEAN EQUITY SPECIALIST AT MORGAN STANLEY INTERNATIONAL IN LONDON STILL IN SOME EUROPEAN STOCK MARKETS AND SOME SELECTED STOCKS YOU WILL SEE GAINS THAT WOULD MAKE IT WORTHWHILE FOR A DOLLARBASED INVESTOR OF COURSE FOR ALL BUT THE WEALTHIEST US INVESTORS MAKING DIRECT INVESTMENTS IN EUROPEAN STOCKS IS DIFFICULT AT BEST UNLESS THEY LIMIT THEMSELVES TO BUYING EUROPEAN SHARES TRADED IN THE US IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS OR ADRS MOST INDIVIDUAL INVESTORS IN THE US BUILD UP FOREIGN PORTFOLIOS BY RELYING ON EITHER MUTUAL FUNDS OR PROFESSIONAL MONEY MANAGERS WITH FOREIGN INVESTING EXPERTISE IF THESE PROFESSIONALS FEEL THE DOLLAR IS GOING TO RISE THEY OFTEN WILL HEDGE OR PROTECT THEIR PORTFOLIO AGAINST CURRENCY SWINGS THUS CAPTURING MUCH OF THE FOREIGN STOCK MARKET'S RETURN WITHOUT THE RISK THAT A STRONGER DOLLAR WILL EAT SHARPLY INTO THEIR PROFITS CURRENCY RISKS NOTWITHSTANDING MONEY MANAGERS AND ANALYSTS SUGGEST THAT US INVESTORS TREAT EUROPEAN MARKETS MUCH AS THEY DID THE US STOCK MARKET A YEAR OR SO AGO WHEN THIS ECONOMY WAS EMERGING FROM RECESSION THAT MEANS A FOCUS ON INDUSTRIAL AND FINANCIAL COMPANIES THE MANUFACTURERS AROUND EUROPE WOULD BE THE MAIN BENEFICIARIES OF FALLING INTEREST RATES SAYS ANDREW F JENNER DIRECTOR OF EUROPEAN EQUITIES AT COUNTY NATWEST INVESTMENT MANAGEMENT IN LONDON IN FRANCE HE LIKES AUTO MAKER PEUGEOT AND GLASS MAKER ST GOBAIN ITALY'S PIRELLI A TIRE MANUFACTURER AND SASIB A MACHINE TOOL COMPANY ARE APPEALING AS ARE SWEDEN'S AB ELECTROLUX AND SKF A BALLBEARING MAKER GERMAN STOCKS WILL BECOME APPEALING ONLY AFTER GERMANY CUTS INTEREST RATES FURTHER SAYS MR JENNER SHORTTERM GERMAN COMPANIES WILL BE UNCOMPETITIVE HE SAYS BUT IN THE MEDIUMTERM THEY'VE GOT GOODS THAT PEOPLE WILL WANT TO BUY EUROPEAN COMPANIES WITH LARGE DOLLAR SALES ARE HIGH ON WOLFHARD GRAETZ'S LIST OF POTENTIAL BUYS MR GRAETZ CHIEF INVESTMENT OFFICER AT BANK J VONTOBEL & CO IN ZURICH SUGGESTS THAT FRANCE'S LAFARGE COPPEE A CEMENT COMPANY AND PECHINEY AN ALUMINUM MAKER WILL PERFORM WELL HE ALSO LIKES SWISS PHARMACEUTICAL GIANT CIBAGEIGY MR GRAETZ ALSO THINKS SOME BARGAINS CAN BE FOUND IN THE AUSTRIAN STOCK MARKET WHICH LIKE GERMANY HAS BEEN DEPRESSED BY NEGATIVE ECONOMIC NEWS HE'S PARTICULARLY HIGH ON CREDITANSTALTBANKVEREIN A BANK THAT WOULD BENEFIT QUICKLY FROM FALLING INTEREST RATES WHICH HE SAYS ARE INEVITABLE IN BOTH GERMANY AND AUSTRIA MR DAVIDSON MORGAN STANLEY'S EUROPEAN EQUITY STRATEGIST IN LONDON IS A BANK FAN TOO ALBEIT HE LIKES THE FINANCIAL INSTITUTIONS IN DIFFERENT COUNTRIES THE STOCKS THAT WILL BENEFIT THE MOST FROM FALLING SHORTTERM INTEREST RATES ARE IN BELGIUM AND DENMARK HE SAYS NOTING THAT KREDIETBANK AND GENERALE DE BANQUE IN BELGIUM AND DEN DANSKE BANK IN DENMARK ARE FAVORITES FRANCE'S SOCIETE GENERALE AND SPAIN'S ARGENTARIA AND BANCO SANTANDER ALSO ARE EXPECTED TO SHOW NICE GAINS HE ADDS AND INTEREST RATE PLAYS AREN'T CONFINED TO FINANCIAL INSTITUTIONS SAYS MR DAVIDSON POINTING TO GENERALE DES EAUX A FRENCH WATER UTILITY WITH LARGE PROPERTY HOLDINGS AND FLOATING RATE DEBT AMOUNTING TO 13 BILLION FRENCH FRANCS BUT NOT EVERYONE IS ENAMORED OF EUROPEAN BANKS NORMAN KURLAND AN INTERNATIONAL PORTFOLIO MANAGER AT PIONEER GROUP INC IN BOSTON WARNS INVESTORS THAT MANY EUROPEAN BANK STOCKS ARE TOO EXPENSIVE THE EXPECTATION OF FALLING RATES IS A GAME THAT HAS ALREADY BEEN PLAYED A LOT HE SAYS STILL THE ASTUTE INVESTOR CAN FIND SOME BARGAINS AMONG SMALLER FINANCIAL INSTITUTIONS HE ADDS INCLUDING FRANCE'S CETELEM SOVAC AND CREDIT LOCAL DE FRANCE LIKE MANY OTHER INVESTORS HE PREFERS TO DO MOST OF HIS EUROPEAN SHOPPING AMONG MANUFACTURING COMPANIES INCLUDING EUROPEAN AUTO CHEMICAL CONSTRUCTION AND STEEL CONCERNS WITH QUICKER DECLINES IN INTEREST RATES YOU ARE HASTENING RECOVERY IN EUROPE AND THOSE ARE THE KINDS OF COMPANIES THAT WILL BENEFIT MOST HE SAYS INFLATION JITTERS SPARKED BY RALLYING GOLD PRICES AND A WEAKER DOLLAR SENT STOCKS INTO A TAILSPIN THE DOW JONES INDUSTRIAL AVERAGE SLUMPED 2795 POINTS OR 078 TO 353947 REFLECTING STEEP LOSSES IN SOME BIG BLUECHIP ISSUES MINNESOTA MINING & MANUFACTURING TUMBLED 3 3/4 TO 105 DESPITE REPORTING SECONDQUARTER EARNINGS IN LINE WITH EXPECTATIONS AND ALLIEDSIGNAL SKIDDED 1 1/4 TO 70 1/8 OTHER BROADER MARKET MEASURES ALSO FELL STANDARD & POOR'S 500STOCK INDEX SLID 211 OR 047 TO 44813 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 085 OR 034 TO 24849 VOLUME ON THE BIG BOARD TOTALED 250380700 SHARES A SLIGHT DROP FROM 260795610 THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 999 TO 926 FOR THE WEEK THE DOW JONES INDUSTRIALS ENDED FRACTIONALLY LOWER AND THE S&P 500 AND THE NEW YORK COMPOSITE INDEX ROSE MARGINALLY AL LABORATORIES PLUNGED 9 TO 14 5/8 THE PHARMACEUTICAL COMPANY'S SECONDQUARTER PROFIT SANK TO 12 CENTS A SHARE FROM 25 CENTS A SHARE A YEAR AGO LAST YEAR'S EARNINGS WERE RESTATED IN ADDITION AL LABORATORIES SAID IT THINKS IT WILL HAVE DIFFICULTY EQUALING 1992'S EARNINGS FROM CONTINUING OPERATIONS CHURCH & DWIGHT TUMBLED 2 5/8 TO 23 7/8 A 52WEEK LOW AFTER SMITH BARNEY HARRIS UPHAM CUT ITS 1993 PERSHARE EARNINGS ESTIMATE TO 160 FROM 165 GENERAL MOTORS WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD GAINING 1 TO 48 1/2 THE COMPANY THURSDAY POSTED AN 889 MILLION PROFIT FOR THE SECOND QUARTER REVERSING A YEARAGO LOSS OF 703 MILLION BROOKE GROUP SANK 1 3/8 TO 3 3/4 THE WALL STREET JOURNAL REPORTED FRIDAY THAT BENNETT S LEBOW THE COMPANY'S CHAIRMAN USED THE DEBTBLOATED FIRM AS A KIND OF PERSONAL BANK THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 041 POINT TO 437 THERE WERE 294 GAINERS AND 254 DECLINERS 9308020090 930802 MARKETING & MEDIA SIX CABLE OPERATORS AGREE TO AIR NEW FOX NETWORK LOS ANGELES NEWS CORP'S FOX INC SAID SIX CABLE TELEVISION OPERATORS AGREED TO CARRY ITS NEW BASIC CABLE NETWORK COX ENTERPRISES' COX CABLE COMMUNICATIONS INC TIMES MIRROR CO'S TIMES MIRROR CABLE TELEVISION INC VIACOM INC TELECABLE CORP INTERMEDIA PARTNERS AND PRIME CABLE HAVE AGREED TO MAKE ROOM ON THEIR CHANNEL LINEUPS FOR THE NEW SERVICE AS PART OF NEGOTIATIONS UNDER THE 1992 CABLE ACT THE NEW FOX SERVICE WHICH CURRENTLY HAS COMMITMENTS COVERING 15 MILLION SUBSCRIBERS MODELED THE LATEST AGREEMENTS AFTER ITS FIRST PACT WITH TELECOMMUNICATIONS INC WHICH SAID IT WOULD PAY FOX 25 CENTS PER HOME FOR THE NEW CHANNEL THE PROGRAMMING CONTENT OF THE NEW CHANNEL HASN'T BEEN ANNOUNCED BUT IS EXPECTED TO INCLUDE ORIGINAL FOX PROGRAMMING AS PART OF THE AGREEMENTS FOX AGREED NOT TO DEMAND PAYMENTS FROM THE CABLE OPERATORS FOR BROADCASTING ITS REGULAR NETWORK PROGRAMMING THE NEW CABLE LAW WOULD ALLOW FOX TO MAKE THAT DEMAND 9308020089 930802 NORTHWEST AIR'S LOSS NARROWED IN QUARTER ATTENDANTS CLEAR PACT ST PAUL MINN NORTHWEST AIRLINES SAID ITS NET LOSS NARROWED IN THE SECOND QUARTER EVEN AFTER A BIG CHARGE RELATED TO ITS RESTRUCTURING THE AIRLINE A UNIT OF CLOSELY HELD WINGS HOLDINGS INC POSTED A NET LOSS OF 1352 MILLION COMPARED WITH A LOSS OF 146 MILLION A YEAR EARLIER THE LATEST LOSS INCLUDES A PRETAX CHARGE OF 993 MILLION MAINLY PROVISIONS FOR CANCELED AIRCRAFT NORTHWEST SAID REVENUE ROSE 7 TO 209 BILLION FROM 196 BILLION REFLECTING HIGHER FARES AND MORE SEATS OCCUPIED MEANWHILE NORTHWEST'S FLIGHT ATTENDANTS BECAME THE THIRD MAJOR LABOR GROUP TO APPROVE A PACKAGE THAT CALLS FOR EMPLOYEES TO GRANT 886 MILLION IN CONCESSIONS OVER THREE YEARS IN RETURN FOR STOCK AND SEATS ON THE COMPANY'S BOARD THE FLIGHT ATTENDANTS REPRESENTED BY THE TEAMSTERS UNION VOTED 5622 TO 508 TO APPROVE THE PACT WHICH ALSO CONTAINS WHAT THE UNION SEES AS IMPROVED WORKING CONDITIONS UNIONS REPRESENTING THE AIRLINE'S PILOTS AND GROUND PERSONNEL HAVE ALREADY APPROVED THEIR CONCESSIONS AGREEMENTS NORTHWEST SAID APPROVAL BY THE UNIONS MEANS THAT AGREEMENTS WITH THE CARRIER'S LENDERS TO POSTPONE PAYMENTS ON SOME 24 BILLION IN DEBT CAN TAKE EFFECT THE AIRLINE SAYS THE NEW LABOR AND FINANCIAL AGREEMENTS WILL ENABLE IT TO SUBSTANTIALLY REDUCE OUR OPERATING COSTS AND RESTRUCTURE OUR DEBT AND OTHER FINANCIAL COMMITMENTS TO VERY MANAGEABLE LEVELS 9308020088 930802 LAW SAYS LLOYD BENTSEN CAN'T PURCHASE US BONDS WASHINGTON TREASURY SECRETARY LLOYD BENTSEN NEARLY BROKE THE LAW LAST WEEK MR BENTSEN WHOSE JOB DESCRIPTION MAKES HIM THE CHIEF SALESMAN FOR US SAVINGS BONDS TOLD A SAVINGS BOND PEP RALLY LAST WEEK THAT HE WAS SIGNING UP TO BUY BONDS THROUGH THE PAYROLL DEDUCTION PLAN BUT BEFORE HE COULD DO SO THE TREASURY'S GENERAL COUNSEL ISSUED A STERN WARNING DON'T IT SEEMS THAT FEDERAL LAW STATES FLATLY THAT THE TREASURY SECRETARIES MAY NOT BE INVOLVED IN BUYING OR DISPOSING OF OBLIGATIONS OF THE US GOVERNMENT I WAS TRYING TO SET A GOOD EXAMPLE MR BENTSEN SAID BUT APPARENTLY I'M NOT ALLOWED A TREASURY SECRETARY WHO VIOLATES THE STATUTE SHALL BE REMOVED FROM OFFICE AND THEREAFTER MAY NOT HOLD AN OFFICE OF THE GOVERNMENT THE SECRETARY ALSO WOULD FACE A 3000 FINE HALF OF WHICH WOULD GO TO AN INDIVIDUAL WHO TURNS THE SECRETARY IN THE LAW ALSO FORBIDS THE TREASURY SECRETARY FROM BEING INVOLVED IN TRADE OR COMMERCE OR FROM OWNING ANY PART OF A VESSEL EXCEPT A PLEASURE BOAT 9308020087 930802 FIRST MORTGAGE CORP EXPECTS RECORD PROFIT FOR ITS FIRST QUARTER DIAMOND BAR CALIF FIRST MORTGAGE CORP EXPECTS TO POST RECORD NET INCOME FOR ITS FISCAL FIRST QUARTER ENDED JUNE 30 OF ABOUT 16 MILLION OR 28 CENTS A SHARE COMPARED WITH 13 MILLION OR 23 CENTS A SHARE A YEAR EARLIER SAID CLEMENT ZIROLI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER PERSHARE RESULTS REFLECT A 5FOR4 STOCK SPLIT PAYABLE AUG 2 R ZIROLI SAID REVENUE INCREASED 23 TO 79 MILLION FROM 65 MILLION HE SAID OUR STRATEGY IS PAYING OFF MR ZIROLI SAID OF THE BANKING COMPANY'S FOCUS ON MORTGAGE LENDING FOR LOWER AND MODERATECOST HOUSING WE'RE DOING A BIGGER SHARE OF GOVERNMENT LOANS HE SAID NOTING THAT OF THE 175 MILLION IN NEW LOAN ORIGINATIONS FOR THE QUARTER 60 WERE FHA/VA GOVERNMENT LOANS COMPARED WITH 55 FOR THE YEAREARLIER QUARTER TO THE DEGREE THAT THE GOVERNMENT IS BECOMING MORE ACTIVE IN HOUSING AGAIN IT IS IMPACTING FIRST MORTGAGE AND COMPANIES LIKE US HE SAID FIRST MORTGAGE HAD A 14 INCREASE IN LOAN ORIGINATION INCOME TO ABOUT 18 MILLION A 27 RISE IN LOAN SERVICING INCOME TO ABOUT 16 MILLION AND A 28 JUMP IN GAINS ON THE SALE OF MORTGAGE LOANS TO ABOUT 37 MILLION MR ZIROLI SAID FIRST MORTGAGE'S LOAN SERVICING PORTFOLIO GAINED 23 TO NEARLY 14 BILLION OF LOANS HE ADDED MR ZIROLI SAID THAT REFINANCING ACTIVITY REMAINS STRONG ACCOUNTING FOR ABOUT 62 OF THE COMPANY'S TOTAL BUSINESS AS LONG AS INTEREST RATES STAY WHERE THEY ARE THERE WILL STILL BE A LOT OF REFINANCINGS TO DO HE SAID 9308020086 930802 STUDENT LOAN OVERHAUL WOULD IMPOSE NEW COSTS ON LENDERS AND SALLIE MAE BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONGRESSIONAL BLUEPRINT FOR RESTRUCTURING THE GUARANTEED STUDENT LOAN PROGRAM REDUCES FEES FOR STUDENTS BUT ALSO IMPOSES NEW COSTS ON LENDERS AND SALLIE MAE AND PRESENTS A MANAGEMENT CHALLENGE FOR THE FEDERAL GOVERNMENT SENATE AND HOUSE NEGOTIATORS FRIDAY PUT THE FINISHING TOUCHES ON A PLAN TO OVERHAUL THE FEDERAL PROGRAM THAT LENDS 15 BILLION ANNUALLY TO 34 MILLION STUDENTS IN ABOUT 7000 UNIVERSITIES COMMUNITY COLLEGES AND TRADE SCHOOLS STUDENTS NOW BORROW FROM ABOUT 7800 BANKS AND THRIFTS UNDER THE PROPOSAL THE GOVERNMENT WOULD TAKE OVER 60 OF THE LENDING OVER THE NEXT FIVE YEARS BY MAKING LOANS DIRECTLY TO STUDENTS THROUGH THEIR SCHOOLS CUTTING INTO A LUCRATIVE BUSINESS FOR BANKS 46 LOAN GUARANTY AGENCIES AND THE STUDENT LOAN MARKETING ASSOCIATIONTHE STOCKHOLDEROWNED GOVERNMENTCHARTERED COMPANY KNOWN AS SALLIE MAE THE STUDENT LOAN INDUSTRY LOBBIED HARD AGAINST THE PLAN THE USA GROUP AN INDIANAPOLIS GUARANTY AGENCY SAID IT SPENT ABOUT 750000 TRYING TO SWAY VOTES WHILE THE INDUSTRY SUCCESSFULLY DEFEATED AN ADMINISTRATION PUSH TO MOVE ENTIRELY TO DIRECT GOVERNMENT LENDING IT ENDED UP WITH JUST 40 OF THE MARKET AND A HOST OF NEW FEES AND REDUCED SUBSIDIES I THINK EVERYBODY GOT HURT TO SOME DEGREE SAID JOE BELEW PRESIDENT OF THE CONSUMER BANKERS ASSOCIATION A TRADE GROUP REPRESENTING THE 700 BANKS AND THRIFTS THAT MAKE MOST COLLEGE LOANS BUT HE PRAISED CONGRESS FOR NOT MOVING COMPLETELY TO DIRECT LENDING WE'RE GLAD THAT THERE STILL IS AN OPPORTUNITY TO COMPETE FOR THE BUSINESS WE THINK IN THE LONG RUN THAT DIRECT LENDING WON'T WORK SALLIE MAE WHICH MAKES A SECONDARY MARKET IN STUDENT LOANS BY PURCHASING THEM FROM BANKS AND USING THEM AS COLLATERAL FOR SECURITIES IT ISSUES WAS SINGLED OUT THE BILL WHICH IS PART OF THE BIG BUDGET PACKAGE MAKING ITS WAY THROUGH CONGRESS IMPOSES AN ANNUAL FEE OF 030 ON NEW LOANS SALLIE MAE PURCHASES THIS CHARGE WHICH DOESN'T APPLY TO OTHER SECONDARY MARKET MAKERS WOULD COST SALLIE MAE 540 MILLION OVER THE NEXT FIVE YEARS A SALLIE MAE SPOKESWOMAN SAID THE COMPANY WAS STILL EVALUATING THE DETAILS OF THE CHANGES AND HAD NO COMMENT EVEN THAT FEE WAS A VICTORY OF SORTS FOR SALLIE MAE THE SENATE VERSION OF THE BILL WOULD HAVE IMPOSED THE FEE ON SALLIE'S TOTAL PORTFOLIO WHICH WAS ABOUT 46 BILLION AT THE END OF 1992 RATHER THAN JUST ON NEW LOANS THE HOUSE BILL BY CONTRAST DIDN'T IMPOSE A NEW FEE ON SALLIE MAE REP WILLIAM FORD CHAIRMAN OF THE HOUSE EDUCATION AND LABOR COMMITTEE OPPOSED THE SENATE PROPOSAL AS TOO ONEROUS AND POSSIBLY ILLEGAL IN CONTRACT TERMS SO THE FEE WAS SCALED BACK TO APPLY ONLY TO NEWLY PURCHASED LOANS THE MICHIGAN DEMOCRAT'S WIFE IS A PARTNER IN WILLIAMS & JENSEN THE LAW FIRM THAT DOES SALLIE MAE'S LOBBYING BUT MR FORD SAID SHE HAS RECUSED HERSELF FROM ALL MATTERS INVOLVING SALLIE MAE IN SELLING THE DIRECT LENDING IDEA PRESIDENT CLINTON ARGUED THAT IT WOULD BE CHEAPER AND MORE EFFICIENT FOR THE GOVERNMENT TO TAKE OVER THE PROGRAM AND STOP PAYING INTERESTRATE SUBSIDIES TO BANKS PROPONENTS CONTEND THAT DIRECT LENDING WOULD REDUCE PAPERWORK FOR STUDENTS WHILE OPPONENTS ARGUE THAT THE GOVERNMENT WON'T BE ABLE TO MANAGE THE SYSTEM AS WELL AS PRIVATE LENDERS RAISING THE PROSPECT OF SNAFUS THAT COULD DELAY OR DENY SOME STUDENTS NECESSARY LOANS THE PROGRAM CONTAINS A NUMBER OF BENEFITS FOR STUDENTS THEY WOULD BE ABLE TO ADOPT FLEXIBLE REPAYMENT SCHEDULES ADJUSTED TO THEIR INCOME RATHER THAN REPAYING THEIR LOANS IN EQUAL MONTHLY INSTALLMENTS OVER 10 YEARS AS CURRENTLY REQUIRED THE ORIGINATION FEE STUDENTS PAY WOULD FALL TO 4 ON JULY 1 1994 FROM A MAXIMUM OF 8 OF THE LOAN AMOUNT THE AVERAGE STUDENT LOAN IS JUST UNDER 3000 AND LOWER INTEREST RATES WOULD BE PHASED IN STUDENT LOANS ARE A HIGHLY PROFITABLE BUSINESS FOR BANKS BUT THE CHANGES WOULD REDUCE THOSE PROFITS SOMEWHAT ALL LENDERS WOULD HAVE TO PAY THE GOVERNMENT AN UPFRONT FEE OF 05 ON NEW LOANS CURRENTLY BANKS RECEIVE AN INTEREST RATE SUBSIDY OF 31 PERCENTAGE POINTS ABOVE THE 91DAY TREASURY BILL RATE ON LOANS THEY MAKE STARTING JULY 1 1995 THE SUBSIDY WOULD BE CUT TO 25 POINTS WHILE THE STUDENT IS IN SCHOOL IT WOULD BE 31 POINTS AFTER GRADUATION IN ADDITION HOLDERS OF CONSOLIDATION LOANS A POPULAR OPTION THAT ALLOWS STUDENTS TO REPLACE SEVERAL LOANS WITH ONE MUST PAY A NEW ANNUAL FEE OF 1 OF THE OUTSTANDING LOAN BALANCES THIS WOULD APPLY TO BANKS THAT MAKE AND HOLD LOANS AS WELL AS TO SECONDARY MARKET MAKERS SALLIE MAE IS THE LARGEST HOLDER OF CONSOLIDATION LOANS IN ADDITION ALL LOAN HOLDERS WOULD GET ONLY 98 OF THE AMOUNT OF A DEFAULTED LOAN RATHER THAN THE CURRENT 100 THE 46 GUARANTY AGENCIES WHICH HELP THE GOVERNMENT ADMINISTER THE PROGRAM WOULD ALSO GET SMALLER PAYMENTS ON DEFAULTED LOANS IN ADDITION THE MAXIMUM INSURANCE PREMIUM THEY CHARGE WOULD FALL TO BETWEEN 05 AND 07 FROM 3 THE PRECISE NUMBER DEPENDS ON FINAL CALCULATIONS BY THE CONGRESSIONAL BUDGET OFFICE THE LOWER FEE WOULD HIT THE AGENCIES HARD DANIEL CHEEVER THE PRESIDENT OF AMERICAN STUDENT ASSISTANCE A MASSACHUSETTS GUARANTOR SAID THE LOWER FEE WOULD LOWER HIS AGENCY'S REVENUE BY ABOUT 60 WE'RE VERY DISAPPOINTED BY MOST OF THE PROVISIONS MR CHEEVER SAID THE PHASING IN OF DIRECT LENDING IS EVEN FASTER THAN THE DEPARTMENT OF EDUCATION RECOMMENDED UNDER THE COMPROMISE 5 OF THE LOANS WOULD BE MADE DIRECTLY IN THE 199495 SCHOOL YEAR FOLLOWED BY 40 THE SECOND YEAR AT LEAST 50 IN THE THIRD AND FOURTH YEARS AND 60 OR MORE IN THE FIFTH YEAR THE BILL WOULD ALLOW THE EDUCATION DEPARTMENT TO DRAFT COLLEGES INTO THE PROGRAM TO HELP IT MEET THOSE GOALS MANY LARGE UNIVERSITIES WITH SOPHISTICATED FINANCIALAID OFFICES FAVOR DIRECT LENDING WHILE SMALLER SCHOOLS FEAR THE PROGRAM WOULD IMPOSE NEW ADMINISTRATIVE BURDENS EDUCATION DEPARTMENT OFFICIALS ADMIT THAT THE TRANSITION WOULD BE DEMANDING AND COMPLEX ONE REASON THE SENATE RESISTED SHIFTING TO 100 DIRECT LENDING AS THE HOUSE AND MR CLINTON PROPOSED WAS TO LEAVE A SAFETY VALVE IN CASE THE PROGRAM FLOPPED THE DEPARTMENT HAS MANAGED STUDENT LOAN PROGRAM POORLY IN THE PAST LOSSES FROM DEFAULTS RUN AT 2 BILLION TO 3 BILLION A YEAR ONE QUESTION LEFT UNRESOLVED BY THE LEGISLATION IS THE FUTURE OF SALLIE MAE THE COMPANY HAS ANNOUNCED THAT IT WANTS TO DROP ITS FEDERAL CHARTER SO THAT IT CAN DO MORE THAN FINANCE STUDENT LOANS WITH ITS HIGH CREDIT RATING SALLIE MAE IS WELLPOSITIONED TO OFFER A WIDE RANGE OF FINANCIAL SERVICES HOWEVER IT MAY EMERGE AS A MAJOR SERVICER OF STUDENT LOANS FOR THE GOVERNMENT 9308020085 930802 ECONOMY NAFTA TALKS STILL MUST GET OVER STEEP HURDLES DEALS NEEDED ON FINANCING ENVIRONMENTAL CLEANUP ENFORCEMENT OF LAWS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEGOTIATORS FROM THE US MEXICO AND CANADA MUST CLEAR A NUMBER OF STEEP HURDLES THIS WEEK TO FINISH SIDEAGREEMENTS TO THE NORTH AMERICAN FREE TRADE AGREEMENT AFTER MEETING TWO DAYS AT THE END OF LAST WEEK TRADE MINISTERS FROM THE THREE COUNTRIES AGREED TO ANOTHER ROUND OF TALKS WEDNESDAY AND THURSDAY IN WHICH ALL SIDES HOPE TO WRAP UP THE NEGOTIATIONS THE MINISTERS ALSO DIRECTED THEIR ASSISTANTS TO CONTINUE NEGOTIATING AT THE MADISON HOTEL HERE THROUGH THE WEEKEND AND UNTIL WEDNESDAY'S MINISTERIAL GATHERING AT THE HOTEL THIS IS NO PIECE OF CAKE SAID THOMAS HOCKIN CANADA'S BLUNTSPOKEN TRADE MINISTER ONE OF THE BIGGEST HURDLES INVOLVES FINANCING ENVIRONMENTAL CLEANUP ALONG THE USMEXICAN BORDER WHICH THE CLINTON ADMINISTRATION ESTIMATES COULD COST 7 BILLION TO 10 BILLION OVER THE NEXT DECADE THE US PRESENTED A NUMBER OF OPTIONS TO THE NEGOTIATORS THE MAIN PLAN APPROVED LAST WEEK BY THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL WOULD CREATE TWO INSTITUTIONS TO HANDLE THE CLEANUP CHORES AND COULD COST THE US GOVERNMENT ROUGHLY 100 MILLION ANNUALLY THE FIRST INSTITUTION A USMEXICO AGENCY CALLED THE BORDER AUTHORITY WOULD SET UP ENVIRONMENTAL PROJECTS FOR INSTANCE IT COULD ESTABLISH A WATER AUTHORITY IN A BORDER CITY WHICH COULD THEN CHARGE FEES FOR WATER USERS AND ISSUE BONDS THE SECOND INSTITUTION WOULD BE A BORDER DEVELOPMENT BANK PLACED WITHIN THE EXISTING INTERAMERICAN DEVELOPMENT BANK TO FINANCE CLEANUP PROJECTS SEED MONEY WOULD BE PROVIDED BY THE US AND MEXICO THE BORDER BANK COULD DIRECTLY LEND MONEY TO ENVIRONMENTAL PROJECTS OR PROVIDE FINANCIAL GUARANTEES SO THOSE PROJECTS COULD ISSUE BONDS IT ISN'T CLEAR WHETHER THE BANK WOULD BE TIED TIGHTLY TO THE BORDER AUTHORITY OR BE ABLE TO LEND MORE BROADLY THE TRADE MINISTERS SET UP A WORKING GROUP TO EXPLORE THE FUNDING ISSUE EVEN THOUGH MR HOCKIN SAID CANADA WASN'T INTERESTED IN PARTICIPATING IN USMEXICO BORDER CLEANUP PLANS AFTER THE NEXT MINISTERIAL MEETING SAID MEXICO'S TRADE MINISTER JAIME SERRA PUCHE WE'LL BE ABLE TO INFORM YOU IF WE STRIKE A DEAL THE THREE SIDES THOUGH REMAIN AT LOGGERHEADS OVER THE OTHER MAJOR ISSUE ENFORCEMENT PRESIDENT CLINTON LAUNCHED THE NEGOTIATIONS OVER THE SIDE DEALS IN ORDER TO TIGHTEN PROVISIONS IN NAFTA CONCERNING LABOR AND THE ENVIRONMENT THE US WANTS ASSURANCES AND NEEDS THEM TO SELL NAFTA TO A SKEPTICAL CONGRESS THAT MEXICO WOULD ENFORCE ITS ENVIRONMENTAL AND LABOR TRICTLY AND NOT USE LAX ENFORCEMENT TO GIVE COMPANIES SOUTH OF THE BORDER A COMPETITIVE ADVANTAGE OVER US FIRMS AT A MINIMUM THE US SAID IT MUST HAVE THE POWER TO ORDER TRADE SANCTIONS AGAINST MEXICO OR CANADA IF AN ARBITRATION PANEL RULES THAT THEY AREN'T ENFORCING THEIR LAWS CANADA WHICH HAS THE LEAST AT STAKE IN THESE TALKS HAS TAKEN THE TOUGHEST STANCE AGAINST THE US ARGUING THAT TRADE SANCTIONS COULD BE MANIPULATED BY UNIONS AND PROTECTIONISTMINDED COMPANIES TO BLOCK IMPORTS MR HOCKIN SAID THE SPOTLIGHT OF PUBLICITY WOULD BE ENOUGH TO SHAME A COUNTRY INTO ENFORCING ITS LAWS THE SIDE DEALS ENVISION TRINATIONAL BOARDS TO INVESTIGATE REPORTS OF NONCOMPLIANCE AMONG NAFTA PARTIES FOR ITS PART MEXICO SAID THAT TRADE SANCTION THREATS WOULD VIOLATE ITS NATIONAL SOVEREIGNTY EVEN THOUGH MEXICO HAS ALREADY AGREED UNDER NAFTA TO MAKE BIG CHANGES IN ITS LAWS TO ENCOURAGE FOREIGN INVESTMENT WITHOUT WORRYING UNDULY ABOUT SOVEREIGNTY BUT THE MEXICANS WHO DESPERATELY WANT TO CONCLUDE THE NAFTA TALKS HAVE INDICATED THEY WOULD CONSIDER FINES AS A SUBSTITUTE FOR TRADE SANCTIONS FINES WOULD BE PAID BY A GOVERNMENT AND BARELY INTERRUPT TRADE TRADE SANCTIONS WOULD IMPOSE TARIFFS ON IMPORTS AND COULD MORE DIRECTLY AFFECT COMPANIES THAT VIOLATE ENVIRONMENTAL AND LABOR STANDARDS THE BUSINESS ROUNDTABLE A TRADE ASSOCIATION OF BIG US COMPANIES HAS PROPOSED A COMPROMISE WHICH US TRADE REPRESENTATIVE MICKEY KANTOR PUT FORWARD DURING THE TALKS UNDER THE COMPROMISE FINES COULD BE IMPOSED IF AN ARBITRATION PANEL RULES THAT ONE OF THE NATIONS HAD PERSISTENTLY FAILED TO ENFORCE ITS ENVIRONMENTAL OR LABOR LAWS IF A NATION REFUSED TO PAY TRADE SANCTIONS COULD FOLLOW THE COMPROMISE HAS THE ADVANTAGE OF ALLOWING MEXICO TO CLAIM THAT IT MERELY AGREED TO A SYSTEM OF FINES WHILE THE US COULD SAY THAT IT HELD FIRM FOR TRADE SANCTIONS BUT SO FAR THE MEXICANS HAVEN'T AGREED EVEN IF THEY DID IT IS UNCLEAR WHETHER SUCH A COMPROMISE WOULD SATISFY NAFTA SKEPTICS SUCH AS MAJORITY LEADER RICHARD GEPHARDT WHO ARE PRESSING FOR TOUGH ENFORCEMENT MEASURES IN THE END CONGRESSIONAL APPROVAL IS THE TOUGHEST HURDLE THAT NAFTA MUST CLEAR THE BUSINESS ROUNDTABLE HASN'T ENDORSED A PROPOSAL UNDER WHICH TRADE SANCTIONS COULD BE ORDERED AGAINST A COUNTRY THAT DIDN'T PAY FINES FOR ENVIRONMENTAL OR LABOR INFRACTIONS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT AN ARTICLE YESTERDAY INCORRECTLY STATED THE BUSINESS ROUNDTABLE HAD PROPOSED SUCH A SYSTEM 9308020084 930802 INTERNATIONAL JAPAN'S STRUGGLING LDP CHOOSES KONO A ONETIME PARTY DEFECTOR AS ITS LEADER BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S STRUGGLING LIBERAL DEMOCRATIC PARTY PICKED A NEW LEADER FRIDAY A MAN WHO WAS ONCE SO DISGUSTED WITH LDP PRACTICES THAT HE QUIT THE PARTY FOR 10 YEARS YOHEI KONO 56 YEARS OLD WAS CHOSEN TO SUCCEED KIICHI MIYAZAWA 73 YEARS OLD AS LDP PRESIDENT MR MIYAZAWA IS ALSO PRIME MINISTER A POST THAT FOR NEARLY FOUR DECADES HAS GONE TO THE LDP CHIEF BUT THE PARTY HAVING SUFFERED ITS WORST DEFEAT EVER IN ELECTIONS LAST MONTH IS EXPECTED TO LOSE CONTROL OF THE GOVERNMENT TO A COALITION OF SEVEN SMALLER PARTIES AT A SPECIAL SESSION OF PARLIAMENT THIS WEEK MR KONO WOULD THEN BE HEAD OF THE OPPOSITION THE FIRST LDP OFFICIAL WITH THAT DUBIOUS DISTINCTION SINCE THE PARTY WAS CREATED IN 1955 THE LDP'S CHOICE OF MR KONO SHOWS HOW QUICKLY THE RULES ARE BEING REWRITTEN IN JAPANESE POLITICS EVEN WITHIN THE LDP THE PARTY LEADERSHIP HAS ALMOST ALWAYS GONE TO A SENIOR BOSS WHO HEADED HIS OWN FACTION OF PARTY MEMBERS MR KONO WHO HAS SERVED AS CHIEF CABINET SECRETARY UNDER MR MIYAZAWA HAS NO POWER BASE HIS MAIN ASSET IS THAT HE IS CONSIDERED FREE OF THE CORRUPTION THAT HAS BESET THE PARTY AN IMAGE FOSTERED WHEN HE QUIT THE LDP IN 1976 AFTER THE LOCKHEED BRIBERY SCANDAL AND FORMED HIS OWN PARTY THAT EFFORT EVENTUALLY COLLAPSED AND HE REJOINED THE PARTY IN 1986 MR KONO'S MAIN MISSION NOW WILL BE TO TRY TO GIVE THE LDP NEW MEANING OVER THE YEARS BECAUSE THERE WAS NO CREDIBLE OPPOSITION THE LDP CAME TO REPRESENT THE JAPANESE MAINSTREAM AND THUS HAD NO REAL DEFINING POLICIES MUCH OF ITS APPEAL CAME FROM THE ACTS OF RULING SUCH AS CONTROLLING THE BUDGET AND THE ATTENDANT PORK BARREL UNTIL NOW WE'VE HAD PEOPLE GOOD AT MONEY AND ELECTIONS MR KONO SAID ON A SUNDAY MORNING TALK SHOW WE DIDN'T CONCENTRATE ON BEING ABLE TO DEBATE POLICY FROM NOW ON HE VOWED WE ARE GOING TO HAVE A PARTY STRONG ON POLICY HE DIDN'T DEFINE WHAT THE POLICIES WOULD BE MR KONO ALSO VOWED TO SUPPORT POLITICAL REFORM TO TRY TO END THE LDP'S LONG STRING OF SCANDALS BUT IT WAS THE PARTY'S FAILURE TO ENDORSE REFORM THAT LED TO ITS CURRENT PLIGHT AND IT'S NOT CLEAR MR KONO CAN RALLY THE DIVIDED LDP AROUND THAT CAUSE MR KONO'S MAIN OPPONENT IN THE VOTE FOR PRIME MINISTER IS MORIHIRO HOSOKAWA 55 HEAD OF THE ANTILDP COALITION MR HOSOKAWA'S COALITION HAS MORE SEATS IN PARLIAMENT THAN THE LDP AND HE IS CONSIDERED A SURE WINNER THERE WERE SOME SIGNS OVER THE WEEKEND THAT A HANDFUL OF COALITION MEMBERS MIGHT NOT SUPPORT MR HOSOKAWA BUT THE ALLIANCE STILL SEEMS SOLID ENOUGH FOR HIM TO PREVAIL INDEED A CONFIDENT MR HOSOKAWA IS ALREADY FOCUSED ON PICKING A NEW GOVERNMENT WHICH APPEARS BOUND TO FURTHER UPSET THE OLD ORDER HE WILL CHOOSE A SPEAKER OF THE LOWER HOUSE OF PARLIAMENT FROM THE SOCIALISTS WHO HAVEN'T TASTED POWER SINCE 1948 BECAUSE THEY ARE THE LARGEST PARTY IN HIS COALITION THE SOCIALISTS ARE ALSO APPARENTLY ANGLING TO GET THE POST OF MINISTER FOR INTERNATIONAL TRADE AND INDUSTRY THAT MINISTRY UNDER THE LDP HAS BEEN THE DEFINING FORCE IN JAPAN'S PROBUSINESS BENT MR HOSOKAWA ALSO IS CONSIDERING APPOINTING NONPOLITICIANS TO HIS CABINET THAT HASN'T HAPPENED IN A DECADE ONE NAME FLOATED IN THE MEDIA IS SONY CORP CHAIRMAN AKIO MORITA 9308020083 930802 COMPUTERS DELL PROGRAMS NEW PRODUCTS SALES STRATEGY BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP ITS PREVIOUS STRATEGY UNDERCUT BY COMPETITORS WILL UNVEIL A NEW MARKETING TACK TODAY THAT ANALYSTS LIKEN MORE TO SELLING CARS THAN COMPUTERS THE SLUMPING COMPUTER MAKER PLANS TO INTRODUCE THREE LINES OF SOUPEDUP MACHINES AT SHARPLY LOWER PRICES MORE IMPORTANT PERHAPS EACH WILL BE AIMED AT SPECIFIC AND MUCH NARROWER MARKETS THAN EVER BEFORE THERE WILL BE MACHINES DESIGNED FOR CORPORATE USERS LOOKING TO CONNECT TO NETWORKS OF COMPUTERS FOR EXAMPLE AND MACHINES FOR INDIVIDUAL USERS WHO WANT CDROM AND AUDIO CAPABILITIES UNTIL NOW MOST COMPUTER COMPANIES HAVE OFFERED BUYERS ONE BASIC CHASSIS TO WHICH ACCESSORIES COULD BE ADDED AND DELL MADE ITS MARK COBBLING TOGETHER COMPUTERS FOR TELEPHONE CUSTOMERS BUT AS PRICES AND MARGINS CAME CRASHING DOWN THAT GOT TOO EXPENSIVE NOW TAKING A HINT FROM SUCH MOREEXPERIENCED MARKETERS AS AUTO MAKERS COMPUTER COMPANIES ARE MATCHING THEIR LINEUPS TO CUSTOMER DESIRES BY BUILDING ON ASSEMBLY LINES A FULL STABLE OF THE COMPUTING EQUIVALENTS OF SOPHISTICATED SEDANS JAZZY CONVERTIBLES AND FUNCTIONAL STATION WAGONS THIS IS MARKETING 101 IT'S JUST THAT THE COMPUTER INDUSTRY DOESN'T DO ANY EFFECTIVE SEGMENTATION YET SAYS ANALYST LEE LEVITT OF INTERNATIONAL DATA CORP IT'S AN ADDITIONAL STEP OUT OF OUR TECHNOLOGYORIENTED EUPHORIA INTO THE REAL WORLD OF A MATURE BUSINESS ENVIRONMENT INDUSTRY ANALYSTS SAY DELL ISN'T THE ONLY PC MAKER LOOKING TO MORE SHARPLY DEFINE MARKET NICHES INTERNATIONAL BUSINESS MACHINES CORP AS PART OF ITS ATTEMPTS TO REINVIGORATE ITS PC BUSINESS HAS OUTLINED SEVEN MARKET SEGMENTS AND HAS ALREADY DESIGNED PRODUCTS FOR SOME OF THEM SOLD OVERSEAS INDEED IBM IS JUMPING INTO THE HIGHPERFORMANCE NONIBM CATEGORY TODAY BY INTRODUCING IN THE US ITS AMBRA NAMEPLATE PREVIOUSLY USED ONLY ON MODELS SOLD OVERSEAS THE AMBRAS WON'T HAVE AN IBM LOGO THE ANNOUNCEMENT COULD COME AHEAD OF DELL'S TO STEAL SOME OF DELL'S THUNDER AN INDUSTRY OBSERVER SAYS AT COMPAQ COMPUTER CORP A SPOKESWOMAN SAYS THE COMPANY HAS FUTURE PLANS WE'RE NOT YET READY TO TALK ABOUT REGARDING THE DELL STRATEGY WE'RE DEFINITELY LOOKING AT A BROADER AUDIENCE THAN EVER BEFORE AND WE'RE LOOKING AT THESE SEGMENTS FOR GROWTH OPPORTUNITIES DELL'S NEW APPROACH COMES AT A CRUCIAL TIME FOR THE COMPANY WHOSE PREVIOUS STRATEGY OF OFFERING VALUE PRICING AND GOOD SERVICE HAS BEEN UNDERCUT BY COMPAQ AND IBM IN A PC PRICE WAR AND TWO WEEKS AGO DELL SAID IT WOULD POST A LOSS FOR ITS FISCAL SECOND QUARTER ENDED YESTERDAY AS A RESULT OF A 75 MILLION TO 85 MILLION CHARGE COVERING CONTINUING PROBLEMS IN THE COMPANY'S NOTEBOOKCOMPUTER BUSINESS AND THE COSTS OF CORRECTING AN INTERNALFORECASTING SYSTEM THAT HAS CAUSED DELL TO OVERESTIMATE DEMAND I THINK THIS IS AN EVOLUTION FOR THE COMPUTER INDUSTRY THIS IS A MORE SOLID PRODUCT LINE WITH RICHER FEATURE SETS AND LOW PRICES IT DEFINITELY PUTS PRESSURE ON IBM AND COMPAQ SAYS ANALYST RANDAL GIUSTO OF WORKGROUP TECHNOLOGIES INC A MARKETRESEARCH COMPANY DELL'S CONVERSION IS THE RESULT OF AN ANALYSIS OF ITS EXTENSIVE DATABASE OF TELEPHONE CUSTOMERS IT ALSO CONDUCTED A MARKETING STUDY THAT SHOWED SOME PEOPLE ARE STILL INTIMIDATED BY TECHNOLOGY EVEN THOUGH MANY PC USERS HAVE GROWN MUCH MORE SOPHISTICATED IT WAS THE STUDY SAYS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL DELL THAT HELPED THE COMPANY TO RECOGNIZE THAT A ONESIZEFITSALL STRATEGY DOESN'T WORK WHEN IT COMES TO MATCHING PEOPLE WITH THE RIGHT PC SO DELL IS REDESIGNING MOST OF ITS LINE FOR FOUR CUSTOMER TYPES TECHNOTEAMERS WHO ARE PRICESENSITIVE CORPORATE BUYERS SEEKING NETWORKING CAPABILITIES NAME BRANDS AND RELIABILITY TECHNOCRITICALS OR HIGHEND CORPORATE BUYERS INTERESTED IN ADVANCED FEATURES AND ENHANCED PRODUCTIVITY TECHNOWIZARDS SOPHISTICATED USERS WHO ORDER HOT COMPONENTS FROM COMPUTER MAGAZINES AND HAVE PREVIOUSLY BEEN THE DOMAIN OF SUCH NICHE PLAYERS AS GATEWAY 2000 AND TECHNOTOGO CUSTOMERS WHO WANT A SIMPLE AFFORDABLE HOME COMPUTER READY TO USE OUT OF THE BOX WHEN DELL TRIED TO MATCH EXISTING PRODUCTS TO THE NEW SEGMENTS IT WASN'T ALL THAT FLATTERING SAYS SEAN BURKE PRODUCTMARKETING DIRECTOR OUR PRODUCTS WERE IN BETWEEN OUR CUSTOMERS THE NEW NETPLEX LINE DESIGNED AROUND INTEL CORP'S I486 PROCESSOR WILL COME WITH BUILTIN NETWORK CIRCUIT CARDS AND BE PRICED AS LOW AS 1300 DELL SAYS A MORE ADVANCED VERSION OPTIPLEX WILL TARGET THE TECHNOCRITICALS NETWORK CARDS WHICH HAVE PREVIOUSLY BEEN ADDED BY DEALERS AND SYSTEMS PACKAGERS HAVE BECOME INCREASINGLY IMPORTANT TO BUSINESS USERS FOR THE TECHNOWIZARDS DELL WILL OFFER A NEW 2999 DIMENSION XPS JAZZED UP WITH FAST GRAPHICS AND ENHANCED VIDEO A BUILTIN CDROM PLAYER AND AUDIO CAPABILITIES THE WIZARDS ARE CUSTOMERS WE'RE NOT GETTING TODAY BUT WE'RE GOING AFTER NOW SAYS ROB HOWE DELL'S SENIOR VICE PRESIDENT SALES MARKETING AND SERVICE ADS WILL SPECIFICALLY ATTACK GATEWAY 2000 WITH THE GATEWAY TO THE HOTTEST PC TECHNOLOGY ISN'T GATEWAY THE DIMENSION XPS ALSO WILL PIT DELL AGAINST APPLE COMPUTER INC IN SUCH USES AS PHOTOQUALITY GRAPHICS AND MULTIMEDIA APPLICATIONS DELL SAYS ITS MACHINES WILL SIGNIFICANTLY UNDERCUT APPLE'S PRICES YET WITH THE NEW LINES DELL IS SIMPLY PACKAGING EXISTING TECHNOLOGY INTO NEW SYSTEMS RECOGNIZING THAT THE TASTES OF COMPUTER USERS ARE CHANGING THIS IS 100 MARKETING AS OPPOSED TO TECHNOLOGY SAYS ANALYST JOHN MAXWELL OF SOUNDVIEW FINANCIAL GROUP DELL IS IN THE MIDST OF A TRANSITION THIS IS NOT BY ANY MEANS THE STRATEGY THAT WILL BRING THEM BACK TO HIGHER MARGINS DELL SAYS IT WILL BE ABLE TO AT LEAST MAINTAIN IF NOT IMPROVE MARGINS ON THE LOWERPRICED MODELS THROUGH DESIGN IMPROVEMENTS AND COST SAVINGS FROM BUILDING IN POPULAR FEATURES RATHER THAN ADDING THEM ON DELL'S THREE NEW LINES WILL BE SOLD MOSTLY THROUGH DIRECTMARKETING TELEPHONE CHANNELS THE LOWEND LINE OF PLAINVANILLA DIMENSION MODELS REMAINS LARGELY UNCHANGED AND WILL CONTINUE TO BE SOLD THROUGH RETAIL OUTLETS 9308020082 930802 TECHNOLOGY ZONIC CORP REVENUE FELL 40 FOR PERIOD LOSS IS POSTED FOR YEAR CINCINNATI ZONIC CORP SAID SALES DECLINES WERE CONTINUING TO PRODUCE A SERIOUS CASHFLOW PROBLEM AND CAUSING AUDITORS CONCERN REGARDING THE SOFTWARE COMPANY'S 1993 FINANCIAL STATEMENTS ZONIC SAID ITS REDUCED CAPITAL AND SURPLUS POSITION CAUSED ITS STOCK TO BE DELETED FROM NASDAQ'S SMALLCAP MARKET ZONIC SHARES CURRENTLY ARE TRADED ON THE OTC BULLETIN BOARD THE COMPANY'S REVELATIONS CAME AMID A LOSS OF 683572 OR 22 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED MARCH 31 COMPARED WITH NET INCOME OF 67128 OR TWO CENTS A SHARE A YEAR EARLIER REVENUE PLUMMETED 40 TO 17 MILLION FROM 28 MILLION FOR THE FISCAL YEAR ZONIC REPORTED A LOSS OF 29 MILLION OR 94 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 469645 OR 15 CENTS A SHARE INCLUDING A NONRECURRING CHARGE OF 15 MILLION ZONIC ATTRIBUTED THE WEAKER RESULTS ON A CONTINUED WORLDWIDE RECESSIONARY MARKET HOWEVER IT SAID IT CUT OPERATING EXPENSES DRASTICALLY AND REDUCED RESEARCH AND DEVELOPMENT EXPENSES WITHOUT SACRIFICING PRODUCT DEVELOPMENT PLANS IT ALSO SAID IT RENEGOTIATED ITS LOAN ARRANGEMENTS WITH STAR BANK 9308020081 930802 CREDIT MARKETS MORTGAGE BONDS GET PRICEY TWIST REPACKAGED ISSUES OFFER AN INSURANCE' AGAINST PREPAYMENTS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK YOU CAN'T TOP WALL STREET FOR SQUEEZING LEMONADE OUT OF LEMONS FIRST UNDERWRITERS SELL BILLIONS OF DOLLARS OF RISKY AND CAPRICIOUS MORTGAGEBACKED SECURITIES THAT WIND UP REPAYING INVESTORS EARLIER THAN EXPECTED BECAUSE HOMEOWNERS RUSH TO REFINANCE THE UNDERLYING MORTGAGES NOW THE WHIZZES OF WALL STREET HAVE COME UP WITH MORTGAGE BONDS INTENDED TO INSURE AGAINST THE RISK OF PREPAYMENT AT A HEFTY PRICE THEY HAVE FOUND A WAY TO ATTRACTIVELY REPACKAGE SECURITIES THAT NOBODY WANTS AND MAKE MORE MONEY RESELLING THEM THAN THEY DID IN THE ORIGINAL UNDERWRITING IN OTHER WORDS THEY CAN PUT A REBUILT ENGINE IN AN OLD CHASSIS AND CHARGE INVESTORS A NEWCAR PRICE BIG INVESTORS SUCH AS PENSION FUNDS AND MUTUAL FUNDS CAN'T WAIT TO DRIVE OFF WITH THE NEW BONDS UNDERWRITERS HAVE CHURNED OUT 55 BILLION OF THIS NEWFANGLED TYPE OF COLLATERALIZED MORTGAGE OBLIGATION OR CMO IN THE PAST 10 DAYS ALONE CMOS ARE CREATED BY CARVING UP THE CASH FLOWS FROM POOLS OF MORTGAGES INTO INDIVIDUAL BONDS THEY ARE BOUGHT BY INVESTORS THAT INCLUDE ADJUSTABLERATE MORTGAGE FUNDS WHOSE FIRSTHALF TOTAL RETURNS WERE A MEAGER 247 COMPARED WITH 931 FOR TREASURY BOND FUNDS IS THE INSURANCE WORTHWHILE NOT NECESSARILY IT MAY BE SOOTHING TO THE PORTFOLIO MANAGERS WHO HAVE ENDURED MUCH AGONY IN THE PAST TWO YEARS BUT THE NEW PRODUCT'S TIMING MAY BE POOR INTEREST RATES ARE ALREADY SO LOW THAT PREPAYMENTS MAY TAPER OFF AFTER THIS SUMMER'S PEAK MAKING PREPAYMENT INSURANCE UNNECESSARY IF SO THE INSURANCE WILL PROVE TO HAVE BEEN A COSTLY MISSTEP FOR BUYERS SUCH AS GOVERNMENTSECURITIES MUTUAL FUNDS WHOSE YIELDS HAVE DECLINED TO 659 IN ONE RECENT DEAL ALONE THE MORTGAGE SECURITY WITH A TWOYEAR AVERAGE LIFE WAS PRICED TO YIELD THE SAME AS ULTRASAFE TREASURYS INSTEAD OF CARRYING THE MORESTANDARD 05 EXTRA YIELD SOME PORTFOLIO MANAGERS CONTEND THAT INVESTORS ARE PAYING TOO MUCH FOR THIS SOCALLED INSURANCE AND MAY BE ASSUMING RISKS THAT THEY DON'T FULLY UNDERSTAND YOU ARE CARVING UP INHERENTLY MORERISKY CASH FLOWS TO MAKE THESE BONDS SAYS JEFFREY GRUNDLACH WHO RUNS THE 11 BILLION MORTGAGE SECURITIES PORTFOLIO AT TRUST CO OF THE WEST TO MAKE THESE BONDS UNDERWRITERS PACKAGE TOGETHER A BUNCH OF GARBAGE STRIPS THAT NO ONE IS BIDDING FOR A STRIPPED SECURITY IS ONE IN WHICH THE INTEREST HAS BEEN SEPARATED FROM THE PRINCIPAL AND THE TWO PARTS ARE SOLD SEPARATELY IN FACT THESE PREPAYMENT INSURANCE BONDS ARE STRUCTURED WITH A TWIST THAT SOME PORTFOLIO MANAGERS THINK MAKES THEM EVEN RISKIER THAN MOST CMOS THAT'S BECAUSE THEY ARE BACKED BY STRIPS THAT PAY THE BONDHOLDER ONLY THE PRINCIPAL WITHOUT INTEREST AS HOMEOWNERS MAKE THEIR MORTGAGE PAYMENTS SOME EVEN PULL TOGETHER MORTGAGES OF DIFFERENT MATURITIES AND COUPONS WHICH MAKES PREPAYMENT HARDER TO GAUGE WHEN YOU ANALYZE THE SPECIFIC BONDS THERE ARE RISKS THERE THAT YOU WOULDN'T NOTICE UNTIL IT CAME TIME TO SELL SAYS TRUST CO'S MR GRUNDLACH INVESTORS HE SAYS ARE TOO TAKEN WITH THE IDEA OF INSURANCE TO LOOK AT THE COLLATERAL UNDERLYING THESE DEALS ALL THE SAME INVESTORS ARE GRABBING FOR THESE NEW SECURITIES IN ORDER TO HEDGE THEIR EXISTING MORTGAGE PORTFOLIOS THAT'S BECAUSE INTEREST RATES HAVE FALLEN SO LOW THAT MOST MORTGAGE PORTFOLIOS ARE CHOCKFULL OF OLDER SECURITIES WITH HIGH COUPONS WHICH ARE MORE SUSCEPTIBLE TO PREPAYMENT LOW RATES HAVE PROPELLED REFINANCINGS TO NEAR RECORD LEVELS THE MORTGAGE BANKERS ASSOCIATION REFINANCING INDEX WHICH THE MBA USES TO TRACK LOAN APPLICATION VOLUME INDICATES THAT PREPAYMENTS WILL SURGE OVER THE NEXT 60 DAYS AS LOAN APPLICATIONS CLOSE AND OLD MORTGAGES ARE PREPAID SAYS ROBERT ROSENBLATT DIRECTOR OF SURVEYS AND STATISTICS AT THE ASSOCIATION REFINANCINGS CURRENTLY REPRESENT MORE THAN 50 OF NEW MORTGAGE APPLICATIONS COMPARED WITH A HISTORIC NORM OF 15 HE SAYS THE NEW BONDS ARE KNOWN TO BOND TRADERS AS PRINCIPALONLY CMOS SOLD TO INVESTORS AT A DISCOUNT TO FACE VALUE THEY ARE REPAID AT THE FULL FACE AMOUNT WHENEVER HOMEOWNERS PAY OFF THE UNDERLYING MORTGAGES IF THAT HAPPENS EARLIER THAN EXPECTED THE BONDHOLDER REAPS A WINDFALL PROFIT MAKING PO BONDS ESPECIALLY POPULAR RIGHT NOW IT IS THIS FEATURE OF REPAYMENT AT PAR THAT CONSTITUTES THE INSURANCE ELEMENT OF THE BONDS IN THIS ARCANE REALM THE NEW PO CMOS HAVE A STABLE ZEROCOUPON DISCOUNT PIECE THAT REPRESENTS HALF THE DEAL BOOKENDED BY A VOLATILE SUPPORT BOND AND A SOCALLED SUPER PO THAT INTENSIFIES THE EFFECT OF INTERESTRATE DECLINES ALL THIS IS EXPENSIVE FOR WALL STREET THE PO DEALS ARE VERY LUCRATIVE TRADERS NOTE THAT SOME PIECES THAT COMPOSE THESE DEALS ARE BOUGHT VERY CHEAPLY WHEN THERE IS UNCERTAINTY ON THE FUTURE COURSE OF PREPAYMENTS UNDERWRITERS CAN MAKE AS MUCH AS TWO PERCENTAGE POINTS WHEN THEY REDISTRIBUTE THE CASH FLOWS INTO NEW BONDS OR EIGHT TIMES THE NORMAL UNDERWRITING SPREAD TREASURYS ENDED FRIDAY NARROWLY MIXED BUT MARKET SENTIMENT SEEMED BETTER THAN THE PRICE PERFORMANCE SUGGESTED MUCH OF THE GOOD FEELING STEMMED FROM VIEWS THAT CONGRESS WOULD WRAP UP NEGOTIATIONS ON PRESIDENT CLINTON'S BUDGET PACKAGE OVER THE WEEKEND MARKET PLAYERS WERE ENCOURAGED BY A WHITE HOUSE NEWS CONFERENCE LATE FRIDAY DURING WHICH WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID THE FINAL PACKAGE WOULD BE ROUGHLY 98 OF THE WAY THERE TO MR CLINTON'S GOAL OF A 500 BILLION CUT IN THE FEDERAL DEFICIT THAT NEWS HELPED THE 30YEAR BOND ERASE MILD LOSSES EARLY IN THE DAY BOND PLAYERS WOULD WELCOME A REDUCTION IN THE DEFICIT AS THAT PROBABLY WOULD DECREASE THE FEDERAL GOVERNMENT'S NEED TO BORROW IN THE DEBT MARKETS THIS ALLAYS A LOT OF THE FEARS ABOUT THE BUDGET PACKAGE BEING SCALED BACK MUCH BEYOND WHAT CLINTON HAS ASKED FOR SAID TONY CRESCENZI HEAD OF FIXED INCOME AT MILLER TABAK HIRSCH & CO BY LATE FRIDAY THE BENCHMARK 30YEAR TREASURY BOND HAD RISEN BY LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 107 8/32 TO YIELD 657 UNCHANGED FROM THURSDAY THE 10YEAR NOTE DROPPED LESS THAN 1/4 POINT TO 103 6/32 TO YIELD 581 THE CURRENCY CRISIS IN EUROPE APPEARS TO HAVE HAD LITTLE EFFECT ON THE US TREASURY MARKET SO FAR LAST FALL A SIMILAR CRISIS HELPED TO BOOST US BOND PRICES AS EUROPEAN INVESTORS LOOKED FOR SAFE PLACES TO PARK THEIR CASH WHILE WEATHERING THE CURRENCY SHIFTS ON THURSDAY GERMANY'S CENTRAL BANK FAILED TO ENGINEER A MAJOR CUT IN INTEREST RATES AS HAD BEEN EXPECTED IT OPTED INSTEAD FOR WHAT MARKET PARTICIPANTS VIEWED AS A TOKEN CUT IN ITS LOMBARD RATE WHICH ACTS AS A CEILING ON GERMAN SHORTTERM INTEREST RATES ALTHOUGH EUROPEAN INVESTORS DID FLOCK TO THE US DOLLAR THEY APPARENTLY DIDN'T LOAD UP ON US TREASURYS ON FRIDAY I THOUGHT WE'D SEE MORE INTEREST FROM EUROPEAN INVESTORS SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC INSTEAD OVERSEAS PLAYERS KEPT MONEY IN HIGHYIELDING EUROPEAN SECURITIES AND USED THE CURRENCY MARKETS TO HEDGE AGAINST A POSSIBLE COLLAPSE OF THE EXCHANGE RATE MECHANISM SAID MR BRIGGS THE 14YEAROLD ERM IS THE HEART OF EUROPEAN MONETARY UNITY I THINK EUROPEAN INVESTORS HAVE LEARNED TO HANDLE THIS SORT OF CRISIS SAID MR CRESCENZI OF MILLER TABAK THEY'VE GOT BETTER HEDGES ON THIS WEEK THE US TREASURY MARKET AWAITS THE DETAILS OF THE TREASURY'S NEXT MULTIBILLIONDOLLAR QUARTERLY REFUNDING AUCTIONS OF THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS THE TREASURY WILL ANNOUNCE THE SIZE OF THE OFFERINGS ON WEDNESDAY 9308020080 930802 ENI CALLS SURPRISING' MOVE BY MONTEDISON IN ENIMONT SPA CASE SPECIAL TO THE WALL STREET JOURNAL MILAN ITALY'S STATE ENERGY GROUP ENTE NAZIONALE IDROCARBURI ENI GAVE A CURT RESPONSE TO MONTEDISON SPA'S REQUEST FOR A CIVIL COURT RULING ON A CLAIM AGAINST IT BY ENI IN CONNECTION WITH THEIR NOW DEFUNCT CHEMICAL JOINT VENTURE ENIMONT SPA ENI CALLED THE MOVE A LATE AND SURPRISING ATTEMPT BY MONTEDISON ENI SAID MONTEDISON HAD HAD PLENTY OF TIME TO DISPUTE THE CLAIM AND CALLED IT SIGNIFICANT THAT MONTEDISON HAD CHOSEN TO MAKE THE MOVE NOW AFTER ENI HAS PROVIDED BROAD AND DETAILED DOCUMENTATION IN THE CASE ENI IS CONVINCED MONTEDISON'S ASSET CONTRIBUTIONS TO THE JOINT VENTURE WERE FAR OVERVALUED BECAUSE OF EXISTING CONTENTIOUS PROCEDURES IN CONNECTION WITH ITALY'S ENVIRONMENTAL REGULATIONS MONTEDISON SAID FRIDAY IT HAD CITED ENI AND ENICHEM SPA THE CHEMICALS SUBSIDIARY OF ENI BEFORE THE COURT TO DECLARE THEIR CLAIM INADMISSIBLE AND UNFOUNDED ENI ADDED THAT IT WOULD ALSO TAKE THE NECESSARY INITIATIVES TO PROTECT ITS INTERESTS AS SOON AS IT KNEW FULL DETAILS OF THE CURRENT INQUIRY BY MAGISTRATES INTO THE ENIMONT CASE TWO FORMER TOP EXECUTIVES OF MONTEDISON GIUSEPPE GAROFANO AND CARLO SAMA HAVE BEEN QUESTIONED OVER ALLEGED KICKBACKS TO POLITICAL PARTIES OVER ENIMONT THIS WEEK IT'S BEEN ALLEGED THAT KICKBACKS WERE PAID TO POLITICAL PARTIES AND INDIVIDUALS IN CONNECTION WITH ENIMONT'S DISSOLUTION MONTEDISON IS CONTROLLED BY FERRUZZI FINANZIARIA SPA 9308020078 930802 PEOPLES JEWELLERS' SALE TO ITS MANAGERS IS CLEARED BY COURT TORONTO AN ONTARIO BANKRUPTCY COURT APPROVED THE SALE OF PEOPLES JEWELLERS LTD TO A GROUP OF THE INSOLVENT COMPANY'S MANAGERS FOR 70 MILLION CANADIAN DOLLARS US544 MILLION PEAT MARWICK THORNE INC AN ACCOUNTING FIRM ACTING AS RECEIVER FOR THE 220STORE RETAIL CHAIN SAID THE FUNDS FOR THE ACQUISITION WILL BE PROVIDED BY BANK OF NOVA SCOTIA PEOPLES' MAIN BANK WHICH IS OWED C103 MILLION BANK OF NOVA SCOTIA ALSO WILL PROVIDE AN OPERATING LINE OF CREDIT OF C30 MILLION PEAT MARWICK SAID THE SALE OF PEOPLES FOLLOWS THE COMPANY'S FAILURE LAST WEEK TO RESTRUCTURE ITS DEBT UNDER CANADIAN BANKRUPTCY COURT PROTECTION THE SALE WILL REMOVE PEOPLES FROM THE CONTROL OF TORONTO'S GERSTEIN FAMILY FOR THE FIRST TIME SINCE THE COMPANY'S FOUNDING IN 1919 UNDER THE TRANSACTION BANK OF NOVA SCOTIA WILL RECEIVE OPTIONS TO ACQUIRE A SIGNIFICANT EQUITY INTEREST IN PEOPLES PEAT MARWICK SAID IT SAID PEOPLES' BOARD WILL REMAIN IN PLACE AND DUFF SCOTT PEOPLES' CURRENT CHAIRMAN WILL TAKE ON THE ADDED ROLE OF CHIEF EXECUTIVE OFFICER ON AN INTERIM BASIS THE BOARD WILL SEARCH FOR A NEW CHIEF EXECUTIVE WITH A RETAILING BACKGROUND THE MANAGEMENT PURCHASE WILL ENABLE THE BUSINESS TO CONTINUE AS A GOING CONCERN PEAT MARWICK SAID 9308020077 930802 REVIEW & OUTLOOK EDITORIAL REINVENTING CITY HALL AMERICA'S MAJOR CITIES FACE BOTH BAD NEWS AND GOOD NEWS THE BAD NEWS IS THAT THE NATIONAL LEAGUE OF CITIES REPORTED LAST MONTH THAT IN 1993 SOME 53 OF CITIES WILL BE OUTSPENDING THEIR INCOME FOR THE THIRD YEAR IN A ROW THE GOOD NEWS IS THAT THIS FISCAL CRUNCH IS FINALLY FORCING MANY MAYORS TO RESTRUCTURE THEIR CITY HALLS PHILADELPHIA'S ED RENDELL BEAT BACK A MUNICIPAL WORKERS' STRIKE AND STARTED CONTRACTING OUT SERVICES THOUGH THE PACE OF REFORM HAS SINCE SLOWED TO A CRAWL CLEVELAND'S FRANK WHITE A BLACK DEMOCRAT REFUSED TO RAISE TAXES FROZE WORKER PAY AND MAY PRIVATIZE SOME SERVICES BOTH REMAIN POPULAR THE APPETITE FOR REFORM AMONG VOTERS IS SO GREAT THAT REPUBLICANS ARE NOW WINNING URBAN ELECTIONS WALL STREETER BRET SCHUNDLER WON 69 OF THE VOTE IN HEAVILY MINORITY JERSEY CITY NJ ON A PLATFORM THAT CALLED FOR TAX CUTS AND SCHOOL VOUCHERS THEN RICHARD RIORDAN WAS ELECTED MAYOR OF LOS ANGELES HE WANTS TO PRIVATIZE GARBAGE COLLECTION AND EVEN THE LOS ANGELES AIRPORT WE'D LIKE TO HIGHLIGHT A TRIO OF MIDWESTERN MAYORS WHO ARE IN THE FOREFRONT OF GETTING SOMETHING ACCOMPLISHED IN AMERICA'S CITIES JOHN NORQUIST FOR MUCH OF THIS CENTURY MILWAUKEE HAS BEEN GOVERNED BY SOCIALIST PARTY MAYORS BUT ITS CURRENT MAYOR A DEMOCRAT TAKES MORE OF HIS INSPIRATION FROM MILTON FRIEDMAN THAN FROM KARL MARX JOHN NORQUIST REMAINS A LIBERAL ON THE ENVIRONMENT AND FOREIGN POLICY BUT HE'S ALL BUSINESS RUNNING A CITY YOU CAN'T BUILD A GREAT CITY ON FEAR OR PITY HE TOLD US CITIES MUST STOP BEGGING WASHINGTON FOR MONEY AND WORK TO BECOME PLACES PEOPLE WANT TO LIVE AND INVEST IN MAYOR NORQUIST HAS HELD THE LINE ON TAXES IS A STAUNCH SUPPORTER OF NAFTA AND HAS MADE IT EASIER FOR LANDLORDS TO SCREEN OUT DANGEROUS TENANTS LAST WEEK A TASK FORCE HE HEADED FOR THE NATIONAL LEAGUE OF CITIES RECOMMENDED TRANSFORMING THE CURRENT WELFARE SYSTEM INTO WORKFARE HE HAS ALSO JOINED BLACK LEGISLATOR POLLY WILLIAMS IN HER CRUSADE FOR SCHOOL VOUCHERS IN MILWAUKEE PROTECTED AGAINST COMPETITION THE PUBLICSCHOOL MONOPOLY SERVES ITSELF NOT STUDENTS HE SAYS COMPETITION WILL MEAN SCHOOLS THAT SUCCEED IN THE BUSINESS OF EDUCATION WILL THRIVE DESPITE THE FIERCE OPPOSITION OF TEACHERS' UNIONS MAYOR NORQUIST WON A SECOND TERM LAST YEAR STEPHEN GOLDSMITH INDIANAPOLIS HAS ELECTED ONLY REPUBLICAN MAYORS SINCE 1967 AND FEW OBSERVERS EXPECTED THE LATEST TO SHAKE UP THE CITY BUT MAYOR GOLDSMITH A FORMER DISTRICT ATTORNEY HAS BEEN TURNING OVER ROCKS IN THE CITY BUREAUCRACY AND LOOKING UNDER THEM HE FOUND GOVERNMENT MONOPOLIES WERE NOT ONLY WASTEFUL BUT ALSO SUFFOCATED NEIGHBORHOOD SELFHELP EFFORTS SO MAYOR GOLDSMITH BEGAN A CONTRACTINGOUT PROGRAM THAT HAS BEEN SO SUCCESSFUL THAT RICHARD RIORDAN LA'S NEW MAYOR MADE A POINT OF VISITING INDIANAPOLIS ONLY DAYS AFTER BEING ELECTED NEW CONTRACTS HAVE MEANT LAYOFFS FOR MANY GOP PATRONAGE EMPLOYEES MY PARTY DIDN'T LIKE THAT SO I HAD TO SHOW RESULTS QUICKLY MAYOR GOLDSMITH QUIPS HE HAS EVEN WHEN CITY UNIONS WIN OUT OVER PRIVATE VENDORS IN COMPETING FOR A SERVICE THE SAVINGS AMOUNT TO 25 OR MORE BUT MAYOR GOLDSMITH'S REAL PASSION IS REINVENTING DEMOCRACY AT THE LOCAL LEVEL HE ARGUES THAT THE SOCIAL INFRASTRUCTURE OF CITIES CHURCHES COMMUNITY GROUPS FAMILIES HAS BEEN UNDERMINED BY BUREAUCRATIC GOVERNMENT HE IS WORKING TO RETURN POWER AND RESOURCES TO NEIGHBORHOODS SO THEY CAN TAKE CARE OF MORE OF THEIR OWN NEEDS MAYORS NATURALLY SPEND A LOT OF TIME WITH ELITES HE TOLD US BUT THE WAY TO SUCCEED IS TO ALWAYS REPRESENT THE PEOPLE WHO AREN'T IN THE PLUSH CONFERENCE ROOMS RICHARD DALEY WHEN BILL CLINTON ASKED CHICAGO MAYOR RICHARD DALEY LAST YEAR WHAT WASHINGTON'S URBAN POLICY SHOULD BE HE GOT A TERSE RESPONSE FIRST DO NO HARM IT MAY SURPRISE MANY THAT THE SON OF RICHARD J DALEY THE MACHINE MAYOR WHO PERSONIFIED BIG MUNICIPAL GOVERNMENT IS NOW PRIVATIZING CHUNKS OF CITY HALL IN CHICAGO BUT TO MAYOR DALEY THAT MAKES GOOD SENSE THE MAYOR HAS AN ALMOST REFLEXIVE BELIEF THAT PRIVATE INDUSTRY CAN DO EVERYTHING BETTER COMPLAINS ALDERMAN LARRY BLOOM HIS 1989 OPPONENT INDEED THE MAYOR HAS EVEN FLIRTED WITH SCHOOL CHOICE FOR CHICAGO'S PUBLIC SCHOOLS WHICH ARE OFTEN RANKED THE WORST IN THE NATION MAYOR DALEY'S REFORMS HAVE HELPED RESTORE ECONOMIC CONFIDENCE IN CHICAGO THE JOB PICTURE IS IMPROVING AND HOUSING PRICES ARE GOING UP 10 A YEAR IN SOME AREAS POLITICALLY HIS REFORMS ARE POPULAR IN A CITY OFTEN DIVIDED ALONG RACIAL LINES IN 1991 MR DALEY WON REELECTION WITH 71 FOR MANY YEARS MAYORS HAVE BLAMED THEIR URBAN ILLS ON CUTBACKS IN FEDERAL AID THE TRUTH AS BILL EGGERS NOTES IN POLICY REVIEW MAGAZINE IS THAT SINCE 1965 WASHINGTON HAS SPENT 25 TRILLION ON AID TO THE CITIES AND INNERCITY PROGRAMS THE EQUIVALENT OF 25 MARSHALL PLANS MUCH OF THAT HAS MADE MATTERS WORSE NOT BETTER SO IT'S REFRESHING TO FIND A GROWING NUMBER OF MAYORS WHO RECOGNIZE THAT THE FUTURE OF THEIR CITIES DEPENDS ON ADOPTING POLICIES THAT WILL BRING BACK BUSINESSES AND MIDDLECLASS TAXPAYERS A CITY ON THE EDGE OF AN ABYSS FINDS IT EASIER TO REFORM SAYS JERSEY CITY'S BRET SCHUNDLER ALL THE OTHER OPTIONS HAVE BEEN EXHAUSTED STILL IT'S SAD THAT SO MANY CITIES HAVE TO GET THAT CLOSE TO THE EDGE BEFORE COMMON SENSE REASSERTS ITSELF IN OUR AUGUST 2 REVIEW & OUTLOOK REINVENTING CITY HALL WE INCORRECTLY IDENTIFIED THE MAYOR OF CLEVELAND HE IS MICHAEL WHITE 9308020076 930802 INTERNATIONAL LLOYDS BANK PLC POSTS 35 INCREASE IN EARNINGS IN HALF BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LLOYDS BANK PLC BRITAIN'S MOST PROFITABLE COMMERCIAL BANK ANNOUNCED A 35 INCREASE IN ITS FIRSTHALF 1993 PRETAX EARNINGS BUT THE FIGURES MASKED A DISAPPOINTING PERFORMANCE BY THE BANK'S UK RETAIL BANKING OPERATIONS WHERE OPERATING PROFIT BEFORE PROVISIONS FELL 4 DESPITE A 5 REDUCTION IN COSTS IN RESPONSE THE BANK'S SHARES SLUMPED 25 PENCE OR 43 TO CLOSE AT 557 PENCE ON THE LONDON STOCK EXCHANGE ON FRIDAY LLOYDS COULD BE A HARBINGER OF MORE DISAPPOINTING NEWS SHARES OF NATIONAL WESTMINSTER BANK PLC AND BARCLAYS PLC WHICH ARE DUE TO ANNOUNCE INTERIM RESULTS THIS WEEK ALSO EASED ON FRIDAY WITH NATWEST SHARES CLOSING DOWN SIX PENCE AT 495 PENCE AND BARCLAYS SHARES DOWN FIVE PENCE AT 482 PENCE IN PART LLOYDS WAS THE VICTIM OF AN UNEXPECTED OPTICAL ILLUSION BECAUSE OF A CHANGE IN ACCOUNTING PRACTICES IT WAS OBLIGED TO RESTATE ITS CAPITALADEQUACY RATIOS AT A LOWER LEVEL THOUGH THERE WAS NO CHANGE IN THE CAPITAL AND RESERVES AT THE BANK'S DISPOSAL THE APPARENT REDUCTION TOOK ANALYSTS BY SURPRISE IN EARNINGS TERMS LLOYDS WAS AIDED BOTH BY LOWER PROVISIONS FOR LOSSES ON ITS DOMESTIC LENDING PORTFOLIO AND REINTEGRATION OF SOME OF ITS PROVISIONS FOR PROBLEMCOUNTRY DEBT GROUP PRETAX PROFIT ROSE TO 498 MILLION 7373 MILLION FROM 369 MILLION A YEAR EARLIER NET INCOME PER SHARE ROSE 43 TO 235 PENCE PER SHARE LLOYDS SAID IT WOULD INCREASE ITS INTERIM DIVIDEND 12 TO 66 PENCE PER SHARE BUT WHILE LLOYDS IS EXPECTED TO REMAIN A CASH MACHINE IT ISN'T CLEAR WHAT IT WILL SPEND ITS MONEY ON AND CHIEF EXECUTIVE BRIAN PITMAN FOR ONE ISN'T GIVING ANYTHING AWAY THOUGH HE SAYS HE'S REVIEWING ALL THE OPTIONS YOU CAN INCREASE THE DIVIDEND HE SAID ON FRIDAY YOU CAN BUY BACK YOUR OWN SHARES THIS COULD BE A WORLD WHERE BECAUSE OF LOW INFLATION COMPANIES WILL BE GENERATING MORE CASH THAN THEY CAN USE PROFITABLY AND SENSIBLY ANALYSTS ALSO SAID THE COMPANY COULD BE GEARING UP FOR AN ACQUISITION 9308020075 930802 ENTERPRISE COSTLY MARKET RESEARCH PAYS OFF FOR BIOTECH STARTUP SURVEYS DEFINE SALES STRATEGY ASSURE INVESTORS AND EVEN HELP AT THE FDA BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO YOU'RE A STARTUP COMPANY YOU HAVEN'T A CLUE WHETHER ANYONE REALLY WANTS YOUR ONLY PRODUCT AND SOME MARKET RESEARCH COMPANY WANTS 150000 TO HELP YOU FIND OUT PLENTY OF COMPANIES WITH INNOVATIVE PRODUCTS ARE IN THIS BOAT MANY FALTER BECAUSE THEY DON'T KNOW HOW BIG THEIR MARKET IS AND HOW TO APPROACH IT AND CAN'T SPARE THE MONEY TO FIND OUT BIOSITE DIAGNOSTICS INC A FIVEYEAROLD BIOTECHNOLOGY STARTUP HERE ISN'T ONE OF THEM AT A TIME WHEN MONEY WAS SCARCE IT SPENT 150000 ON TWO MARKET SURVEYS TO DETERMINE WHETHER ITS NEW PRODUCT HAD A MARKET BUT INFORMATION FROM THE SURVEYS DID MUCH MORE IT HELPED BIOSITE ATTRACT INVESTORS REDEFINE ITS POTENTIAL MARKET AND RESHAPE ITS BUSINESS STRATEGY AS A RESULT OFFICIALS SAY BIOSITE SUCCESSFULLY INTRODUCED ITS FIRST DIAGNOSTIC PRODUCT LAST YEAR AND PLANS TO LAUNCH A SECOND IT SAYS IT EXPECTS TO TURN PROFITABLE THIS YEAR ON REVENUE OF ABOUT 8 MILLION UP FROM JUST MORE THAN 3 MILLION IN 1992 OF COURSE MANY COMPANIES REPORT FAR LESS SATISFACTORY RESULTS FROM MARKET RESEARCH SOME FIND THE RESEARCH LARGELY A WASTE OF MONEY BUT BIOSITE'S EXPERIENCE SUGGESTS HOW MANY STARTUPS CAN AVOID UNNECESSARY COSTS AND PRODUCT DELAYS BY STUDYING THEIR POTENTIAL MARKETS BETTER BIOSITE USED RELATIVELY COSTLY RESEARCH TO SHOW INVESTORS THERE WAS A DEMAND FOR ITS TECHNOLOGY IN A SMALL MARKET THAT MAY HAVE TURNED OFF INVESTORS WHO LIKE TO INVEST IN GRANDER SCHEMES BUT IT GREATLY HELPED OUR ABILITY TO BE A REAL OPERATING COMPANY SAYS KIM BLICKENSTAFF BIOSITE'S COFOUNDER AND CHIEF EXECUTIVE BIOSITE'S QUICK SUCCESS ILLUSTRATES ANOTHER IMPORTANT LESSON OFTEN IGNORED BY SMALL COMPANIES STARTUPS ARE BETTER OFF FOCUSING ON MANAGEABLE MARKET NICHES SAYS PAUL PARISH A PRINCIPAL IN CHARGE OF MANAGEMENT CONSULTING AT CONSULTANTS GRANT THORNTON IN DENVER MANY OF THEM TRY TO GET TOO BIG TOO FAST MR BLICKENSTAFF BEGAN BIOSITE IN 1988 ALONG WITH THREE OTHER FORMER EMPLOYEES OF HYBRITECH INC A FLEDGLING BIOTECH COMPANY AND A UNIT OF ELI LILLY & CO THE FOUR MEN DEVELOPED A DIAGNOSTIC TECHNOLOGY BASED ON MONOCLONAL ANTIBODIES ENGINEERED PROTEINS THAT CAN TARGET SPECIFIC CELLS BIOSITE'S FOUNDERS THOUGHT THEY COULD SPEED UP DIAGNOSTIC TESTING AND LOWER COSTS BY COMBINING MULTIPLE ANTIBODIES TO TEST FOR A VARIETY OF DISEASES AND SUBSTANCES TO PROVE THE TECHNOLOGY'S EFFECTIVENESS THEY DECIDED TO FOCUS ON A SMALL 300 MILLION MARKET DRUG TESTING IN EMERGENCY ROOMS BIOSITE'S FIRST PRODUCT A SMALL DISPOSABLE SYSTEM CALLED TRIAGE CAN TEST A URINE SAMPLE FOR THE PRESENCE OF UP TO SEVEN DRUGS INCLUDING COCAINE HEROIN AND AMPHETAMINES RESULTS SHOW UP IN AN EXCEPTIONALLY FAST 10 MINUTES BIOSITE SAYS BUT THE RELATIVELY SMALL MARKET AND THE PRESENCE OF TWO BIG COMPANIES IN THE FIELD DISCOURAGED BIOSITE'S WOULDBE INVESTORS WE LIKED THE MANAGEMENT AND WE LIKED THE TECHNOLOGY SAYS VENTURE CAPITALIST FRED DOTZLER OF MEDICUS VENTURE PARTNERS A MENLO PARK CALIF VENTURE CAPITAL FIRM THAT LATER BECAME BIOSITE'S BIGGEST STAKEHOLDER BUT MR DOTZLER AND OTHER INVESTORS WEREN'T SURE THAT THE NEW TECHNOLOGY WOULD WORK OR OFFER A COMPETITIVE ADVANTAGE WE NEEDED CONFIRMATION THAT THE MARKET WAS LARGE ENOUGH HE ADDS BIG COMPANIES EMPLOY ARMIES OF MARKET RESEARCHERS TO FIND SUCH ANSWERS YET STARTUPS RARELY DO SO THE LAST THING THAT EVER CROSSES THEIR MINDS IS CONFIRMING THE EXISTENCE OF A MARKET SAYS MR BLICKENSTAFF IN 1989 BIOSITE HIRED MIGLIARA/KAPLAN ASSOCIATES A RESEARCH FIRM IN TOWSON MD TO SURVEY ABOUT 400 PHYSICIANS LABORATORY TECHNICIANS AND OTHER POTENTIAL USERS OF DIAGNOSTIC TESTS THE RESEARCHERS THEN CONDUCTED FOCUS PANELS WITH ABOUT 100 POSSIBLE USERS OF BIOSITE'S DEVICE SURVEYED PHYSICIANS EMPHASIZED THAT THEY NEEDED QUICK DRUG ANALYSIS BECAUSE THE PRESENCE OF ALCOHOL OR DRUGS CAN AFFECT WHAT TREATMENT IS SUITABLE FOR MANY EMERGENCYROOM PATIENTS THE DOCTORS ALSO SAID THAT EXISTING TESTS CONDUCTED BY LABORATORIES WERE RELIABLE BUT USUALLY TOOK SEVERAL HOURS TO PRODUCE RESULTS THE SURVEYS' FINDINGS SUMMARIZED IN A 20MINUTE FILM WERE A KEY ELEMENT IN ATTRACTING VENTURE CAPITALISTS BIOSITE EXECUTIVES SAY BETWEEN 1989 AND 1992 NEW YORK'S EUCLID PARTNERS KLEINER PERKINS CAUFIELD & BYERS IN SAN FRANCISCO DOMAIN ASSOCIATES IN PRINCETON NJ AND OTHERS PUT UP A TOTAL OF 13 MILLION THE SURVEYS HAD OTHER POWERFUL CONSEQUENCES THEY DEFINED WHO OUR TARGET MARKET WAS AND WHAT CHANNELS WE NEEDED TO TRY AND REACH THEM SAYS MR BLICKENSTAFF THE MARKET RESEARCH SHOWED THAT ALTHOUGH EMERGENCYROOM DOCTORS RELIED ON THE DRUGTEST INFORMATION LAB TECHNICIANS PICKED THE ACTUAL TEST USED THIS FINDING MADE US RECOGNIZE THAT WE NEEDED A TWOPRONGED APPROACH INVOLVING MARKETING TO BOTH DOCTORS AND TECHNICIANS SAYS CHARLES PATRICK BIOSITE'S VICE PRESIDENT OF SALES AND MARKETING THE SURVEYS ALSO REVEALED THAT THE PROPOSED PRODUCT NICHE OF ABOUT 6000 EMERGENCY ROOMS WAS A LITTLE TOO BIG FOR ONE STARTUP COMPANY TO HANDLE WE COULD HAVE SOLD IT OURSELVES BUT IT WOULD HAVE TAKEN MUCH MORE MONEY AND MUCH MORE TIME SAYS MR BLICKENSTAFF AS A RESULT BIOSITE SOUGHT DISTRIBUTORS AND PARTNERS THAT COULD SELL ITS PRODUCT AND HELP IT CONCENTRATE ON DEVELOPMENT AND MANUFACTURING IN EARLY 1992 BIOSITE SIGNED A CONTRACT WITH CURTIN MATHESON SCIENTIFIC INC A UNIT OF BRITAIN'S FISONS PLC TO SELL THE PRODUCT IN THE US THROUGH CURTIN MATHESON'S 250 SALESPEOPLE THE ACCORD GIVES THE DISTRIBUTOR ABOUT 9 OF THE 25 CHARGED FOR EACH DEVICE BUT THAT'S STILL CHEAP COMPARED WITH WHAT IT WOULD HAVE COST BIOSITE TO EMPLOY A FULLTIME SALES FORCE OF ABOUT 35 PEOPLE MR BLICKENSTAFF SAYS TO SELL THE PRODUCT IN EUROPE BIOSITE DEVELOPED A SIMILAR MARKETING ARRANGEMENT WITH GERMANY'S E MERCK & CO MERCK IS UNRELATED TO THE US DRUG GIANT WITH THE SAME NAME LAST YEAR MERCK INVESTED 10 MILLION FOR THE INTERNATIONAL RIGHTS TO CODEVELOP AND MARKET CERTAIN OF BIOSITE'S FUTURE PRODUCTS THE EXTENSIVE MARKET RESEARCH ALSO HELPED BIOSITE WORK WITH FEDERAL REGULATORS EXECUTIVES SAY THE US FOOD AND DRUG ADMINISTRATION APPROVED THE DEVICE IN EARLY 1992 AFTER CONSIDERING BIOSITE'S APPLICATION FOR LESS THAN 30 DAYS FDA APPROVAL OF DIAGNOSTIC PRODUCTS USUALLY TAKES AS MUCH AS SIX MONTHS NOW BIOSITE HOPES TO BUILD ON THE SUCCESS OF TRIAGE BY DEVELOPING A DEVICE TO DETECT HEART ATTACKS WITH A HIGH DEGREE OF ACCURACY 9308020074 930802 GLOBAL VIEW EUROPE'S MONEY STEW IS SEASONED WITH MYTHS BY GEORGE MELLOAN BRUSSELS EUROPEAN COMMUNITY FINANCE MINISTERS RUSHED HERE YESTERDAY TO TRY TO AVERT WHAT THEY SEE AS A CATASTROPHE IN THEIR MECHANISTIC VIEW OF THE WORLD IT WOULD BE AWFUL IF FOREIGN EXCHANGE TRADERS RESUMED THEIR ATTACK ON THE FRENCH FRANC TODAY FORCING IT BELOW ITS OFFICIAL TRADING BAND IN WHAT THEY CALL THE EXCHANGE RATE MECHANISM ERM THE EUROPEAN MONETARY SYSTEM EMS MIGHT COLLAPSE CRASHING THE MAASTRICHT TIMETABLE FOR A SINGLE EUROPEAN CURRENCY TO ADOPT A METAPHOR SUITABLE FOR THE OCCASION IT WAS MEN WELL TAILORED MEN TO BE SURE AGAINST THE ELEMENTS THEY WERE BUTTONING UP AGAINST THE HURRICANE THAT STRUCK THE FRANC LAST WEEK AND THAT WOULD PROBABLY START SWIRLING AGAIN WHEN DAWN BROKE MONDAY IN ASIA FIX THE MECHANISM WAS THE CRY ALL THIS STARTED LAST THURSDAY WHEN THE GERMAN BUNDESBANK CONFOUNDED MARKET EXPECTATIONS BY FAILING TO MAKE A FURTHER CUT IN ITS DISCOUNT RATE THEREBY LEAVING GERMAN SHORTTERM LENDING RATES WHERE THEY WERE MEANING RELATIVELY HIGH HIGH RATES PULL MONEY INTO GERMANY WEAKENING OTHER CURRENCIES SO THE THEORY GOES THURSDAY AFTERNOON AND FRIDAY EC CURRENCIES GENERALLY TOOK A POUNDING BUT IT IS THE FRANCMARK LINK THAT IS OF MOST CONCERN CENTRAL BANKS SPENT AN ESTIMATED 20 BILLION TRYING TO KEEP THE ERM INTACT A SIMILAR STORM HAD KNOCKED BRITAIN OUT OF THE ERM LAST YEAR AND FORCED MAJOR DEVALUATIONS IN ITALY AND SPAIN BUT IT HAD BEEN ASSUMED THAT IF FRANCE GERMANY AND THE BENELUX COUNTRIES COULD HANG TOGETHER THE EMS COULD BE PRESERVED FOR A FUTURE BRITISH REENTRY AND A RESUMPTION OF THAT LONG MARCH TOWARD A SINGLE CURRENCY THAT THE MAASTRICHT TREATY CALLS FOR LAST WEEK'S TURMOIL SHOOK THAT FAITH MANY JOURNAL READERS IN ASIA AND EUROPE MAY KNOW WHETHER THE EC EMERGENCY MEASURES ARE SUCCEEDING OR FAILING BY THE TIME THIS COLUMN REACHES READERS IN THE US ONE THING IS QUITE CERTAIN THERE WILL BE NO AUGUST VACATIONS YET FOR THOSE POOR DEVILS AT FOREIGN EXCHANGE TRADING POSTS EVEN IN PARIS WITH EVERYONE ELSE HAVING LEFT FOR WHEREVER THE FRENCH GO IN AUGUST THE TRADERS ARE DOOMED TO AT LEAST A FEW MORE DAYS OF EXCITEMENT UNTIL THE STORM IN THE EMS SUBSIDES THESE OFTENYOUTHFUL LADS AND LASSES WHO TRADE CURRENCIES HAVE BEEN DUBBED SPECULATORS BY THE POWERFUL MINISTERS WHO DEVISE FISCAL AND MONETARY POLICIES THE RESPONSIBLE FOLKS PUT TOGETHER A PERFECTLY LOGICAL MONETARY SYSTEM AND THEN THESE LOUSY WIREDUP KIDS GO OUT AND BREAK IT WELL THAT'S ONE WAY OF LOOKING AT IT INDEED THAT KIND OF IMAGERY DOMINATES PRESS COVERAGE OF MONETARY STORMS AS HEADLINE WRITERS CARTOONISTS AND REPORTERS EXPLOIT THE DRAMA OFFICIAL SUSPICIONS OF THE MARKET SOON GIVE WAY TO DISTRUST OF EACH OTHER GERMAN INDIFFERENCE PUTS FRANC AT MARKET'S MERCY SHOUTED A FRONTPAGE HEADLINE IN THE PARISBASED INTERNATIONAL HERALD TRIBUNE LAST FRIDAY A CARTOON IN THE ECONOMIST PORTRAYED A STEREOTYPICAL CORPULENT GERMAN BURGER SNUBBING A DOWNANDOUT FRENCHMAN YET MAYBE THE FAULT LIES NOT WITH THE CHILDREN AT THEIR TRADING TERMINALS BUT WITH THE CONCEPTS OF POLICY MAKERS IT IS DOUBTFUL THAT JIGGLING INTEREST RATES CAN OFFSET BAD NONMONETARY ECONOMIC POLICY DECISIONS IT IS USEFUL TO THINK ABOUT WHAT THE LIMITED POWERS OF CENTRAL BANKS CAN AND CANNOT ACCOMPLISH THE BUNDESBANK OFTEN SINGLED OUT ALTHOUGH NOT BY GERMANS AS THE EMBODIMENT OF EVIL CAN EXERCISE SOME INFLUENCE OVER BANK RATES AS ANY CENTRAL BANK CAN DO AND IF SHORTTERM RATES IN GERMANY ARE HIGH RELATIVE TO OTHER COUNTRIES AS HAS ACTUALLY BEEN THE CASE THEY WILL TEND TO PULL SHORTTERM INVESTMENTS INTO GERMANY BECAUSE OF THE BUNDESBANK'S REPUTATION FOR SOUND MONEY GERMANS ARE STRONG BIDDERS FOR LONGTERM LOANS AS WELL AS IT HAPPENS GERMANY'S LONGTERM INTEREST RATES SET BY THE MARKET AND NOT THE BUNDESBANK ARE NOT SIGNIFICANTLY HIGHER THAN THOSE IN THE US WHERE VERY LOW SHORTTERM RATES PREVAIL GERMAN LONG RATES ARE LOWER THAN IN SOME OTHER EUROPEAN COUNTRIES WITH LESSSOLID MONETARY POLICY REPUTATIONS A FEW MONTHS AGO A FRANCE MOVING INTO RECESSION BEGAN TO ASK ITSELF WHY IT SHOULD KEEP SHORT RATES SO FAR ABOVE THOSE IN GERMANY AFTER ALL THE FUNDAMENTALS IN FRANCE PARTICULARLY INFLATION AND THE BUDGET DEFICIT LOOKED BETTER THAN THOSE IN GERMANY SO FRANCE BEGAN EASING THE ONLY PROBLEM WAS THAT THE MARKET DIDN'T AGREE WITH THE FRENCH ASSESSMENT AND THE FRANC SOON CAME UNDER ATTACK BUT WHAT CHANCE DID FRANCE HAVE OF WARDING OFF RECESSION MERELY BY LOWERING SHORTTERM INTEREST RATES VERY LITTLE MOST LIKELY BUSINESS CYCLES DEPEND ON OTHER FUNDAMENTALS LIKE WHETHER BUSINESS OPPORTUNITIES EXIST THAT IN TURN DEPENDS ON THE BUSINESS CLIMATE WHICH IS INFLUENCED BY ALL KINDS OF GOVERNMENT POLICIES FOR EXAMPLE IT DEPENDS ON TAX RATES REGULATORY OBSTACLES LEGAL OBLIGATIONS THRUST ON EMPLOYERS WHEN THEY HIRE WORKERS AND MARKET PROTECTIONS FOR ALREADY EXISTING COMPETITORS IN PLAINER TERMS CARTELS EUROPE IS FULL OF THESE INHIBITIONS TO BUSINESS AND JOB CREATION COMPARED TO SOME OF THEM SHORTTERM INTEREST RATES ARE A RELATIVELY MINOR FACTOR THE US IS SLOGGING ALONG WITH A WEAK RECOVERY EVEN THOUGH REAL INTEREST RATES THAT IS NOMINAL INTEREST MINUS THE EXPECTED INFLATION RATEARE APPROACHING ZERO GOVERNMENT DEFICITS ARE A FACTOR IN ECONOMIC BEHAVIOR IN THAT THEY USUALLY REFLECT AN EXCESS OF TAXATION AND WASTEFUL OR COUNTERPRODUCTIVE GOVERNMENT SPENDING THEY ALSO HAVE TO BE FINANCED BUT BY KEEPING SHORT RATES HIGH GERMANY STIMULATES DOMESTIC SAVING AND IN SOME SENSE HAS AN EASIER TIME FINANCING ITS DEFICIT THAN THE US WHICH KEEPS THEM LOW THE OLD NEOKEYNESIAN MYTH THAT EASY MONEY PLUS GOVERNMENT SPENDING IS THE CURE FOR A RECESSION DIES HARD INDEED A GROUP OF MIT PROFESSORS HAS JUST DRAGGED IT OUT OF A DUSTY CLOSET ONCE MORE AS THEIR PRESCRIBED CURE FOR THE WORLD'S ILLS IT DIDN'T WORK IN THE 1970S AND IT IS UNLIKELY TO WORK NOW THERE IS NO SHORTAGE OF GOVERNMENT SPENDING OR GOVERNMENT DEFICITS ANYWHERE IN THE WORLD AND MONEY EVEN IN GERMANY IS NOT TIGHT IF IT IS OF ANY REASSURANCE TO FINANCE MINISTERS THE COMMERCIAL WORLD AND THE WORLD OF FINANCE ARE NOT CHAIN LINKED STOCKS MARKETS AROUND THE GLOBE CRASHED IN 1987 AND THE WORLD ECONOMY HARDLY MISSED A BEAT BUT FINANCE MINISTERS AND HEADS OF GOVERNMENT SHOULD BE REMINDED AS OFTEN AS POSSIBLE THAT THE REAL WORLD IS VERY MUCH AFFECTED BY THE IMPACT OF ALL THEIR POLICIES COMBINED LOOKING AT THEIR PERFORMANCE AS A WHOLE THERE IS VERY LITTLE REASSURANCE TO BE HAD 9308020073 930802 MARKETING & MEDIA WHITTLE TO LAUNCH LEANER SCHOOL PROJECT AFTER FAILING TO ATTRACT OUTSIDE INVESTORS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHITTLE COMMUNICATIONS LP WHICH HAS FAILED TO RAISE 750 MILLION TO HELP FINANCE ITS AMBITIOUS EDISON CHAIN OF FORPROFIT SCHOOLS IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL LAUNCH A MODIFIED VERSION OF THE PROJECT WHITTLE BASED IN KNOXVILLE TENN IS EXPECTED TO SAY IT HOPES TO BEGIN THE EDISON FORMAT IN 100 EXISTING SCHOOLS OVER A THREEYEAR PERIOD STARTING IN 1995 IT WILL USE 40 MILLION IN FUNDS RAISED FROM TWO OF ITS EXISTING PARTNERS PHILIPS ELECTRONICS NV THE DUTCH ELECTRONICS GIANT AND ASSOCIATED NEWSPAPERS HOLDINGS LTD THE BRITISH NEWSPAPER PUBLISHER AS WELL AS FROM PERSONAL HOLDINGS OF CHRISTOPHER WHITTLE FOUNDER OF THE COMPANY THE BUDGET AND SCOPE FOR THE FIRST STAGE OF THE SCHOOL PLAN HAS BEEN SCALED BACK CONSIDERABLY AFTER WHITTLE WAS UNABLE TO ATTRACT MAJOR OUTSIDE INVESTORS WHITTLE NEGOTIATED FOR MONTHS WITH SOME OF THE NATION'S TOP MARKETING AND CONSUMER COMPANIES INCLUDING TELECOMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC AND WALT DISNEY CO DISCUSSIONS COVERED A POSSIBLE SALE OF TIME WARNER'S 375 STAKE IN WHITTLE SOURCES CLOSE TO THE NEGOTIATIONS SAID TELECOMMUNICATIONS AND PARAMOUNT WEREN'T AVAILABLE FOR COMMENT DISNEY DECLINED TO COMMENT PEOPLE FAMILIAR WITH THE TALKS SAID ONE PROBLEM WAS THE HIGH VALUATIONS THAT WHITTLE PLACED ON ITS OWN PROPERTIES AND THE EDISON PROJECT WHILE THEY SAID SOME COMPANIES WERE INTERESTED IN WHITTLE PROPERTIES SUCH AS THE ADVERTISERSUPPORTED CHANNEL ONE NEWS PROGRAM FOR SCHOOLS WHITTLE WAS SAID TO BE SEEKING TOO HIGH A PRICE MOREOVER SOME OF THE COMPANIES CONSIDERED THE EDISON PROJECT NOT FAR ENOUGH ALONG THEY WANTED WHITTLE TO BEAR MORE OF THE EARLY DEVELOPMENT COSTS AND SAID THEY MIGHT BE INTERESTED AT SOME TIME IN THE FUTURE PEOPLE CLOSE TO THE TALKS SAID TIME WARNER WHICH CONTRIBUTED TO EARLIER STAGES OF EDISON HAS SAID IT WILL MAKE NO MORE CONTRIBUTIONS PEOPLE FAMILIAR WITH THE SITUATION SAID THAT 170 MILLION OF THE 750 MILLION WHITTLE WAS SEEKING WAS EARMARKED FOR THE SCHOOLS WHILE A BULK OF THE REMAINDER WAS TO BE USED TO BUY OUT TIME WARNER'S ENTIRE STAKE IN WHITTLE COMMUNICATIONS TIME WARNER HAS SAID IT WANTS TO MONETIZE NONINCOME PRODUCING ASSETS SUCH AS ITS WHITTLE STAKE FOR NOW SOURCES AT BOTH TIME WARNER AND WHITTLE SAID TIME WARNER IS EXPECTED TO KEEP ITS STAKE AND CAN'T SELL WITHOUT PERMISSION OF THE PARTNERS IN WHITTLE COMMUNICATIONS TIME WARNER DECLINED TO COMMENT THOUGH WHITTLE EXECUTIVES ARE STRIVING TO PUT AN UPBEAT INVESTORS IS CLEARLY A MAJOR SETBACK MR WHITTLE ORIGINALLY ANNOUNCED THE EDISON PROJECT WITH MUCH FANFARE IN MAY 1991 SAYING HE PLANNED TO OPEN 200 PRIVATE CAMPUSES BY 1996 EVENTUALLY SERVING MILLIONS OF STUDENTS AND FINANCED BY 25 BILLION TO 3 BILLION THROUGH PRIVATE INVESTMENT IN MAY MR WHITTLE SCALED BACK THE MONEY NEEDED TO 750 MILLION SAYING LESS WAS NEEDED BECAUSE MANAGING EXISTING PUBLIC SCHOOLS UNDER CONTRACT HAD TAKEN ON GREATER EMPHASIS THAN BUILDING NEW COMPETING SCHOOLS AS ORIGINALLY ENVISIONED ALTHOUGH MR WHITTLE DECLINED TO COMMENT BENNO SCHMIDT JR FORMER YALE UNIVERSITY PRESIDENT AND NOW CHIEF EXECUTIVE OFFICER OF THE EDISON PROJECT DENIED A PUBLISHED REPORT IN THE NEW YORK TIMES LAST WEEK THAT WHITTLE HAD SUBSTANTIALLY SCALED BACK THE PROJECT AND MAY USE THE 40 MILLION FOR AN EXPERIMENTAL VERSION OF EDISON HE SAID ABOUT 20 STATE GOVERNORS AND 60 SCHOOL DISTRICTS EXPRESSED VERY STRONG INTEREST IN HAVING PUBLIC SCHOOLS MANAGED UNDER THE EDISON SYSTEM MASSACHUSETTS OFFICIALS CONFIRMED THEY'VE HELD TALKS WITH WHITTLE OVER THE PAST YEAR STATE OFFICIALS SAID WHITTLE HAS PROPOSED THAT IT MANAGE SOME OF THE 25 CHARTER SCHOOLS THE STATE VOTED RECENTLY TO CREATE CHARTER SCHOOLS WOULD BE NEW PUBLIC SCHOOLS WITH INNOVATIVE METHODS OF INSTRUCTION AND MANAGEMENT I'M EXTREMELY CONFIDENT MR SCHMIDT SAID WE'VE NEVER BEEN MORE POSITIVE THAN AFTER THIS PERIOD WE HAVE THE FUEL IN OUR TANKS FOR THE NEXT 18 MONTHS SOON WE WILL BE TAKING OUR IDEAS TO THE EDUCATIONAL MARKETPLACE MR SCHMIDT SAID THAT IN JANUARY THE COMPANY WILL PICK THE MOST PROMISING COMMUNITIES AND STATES AND FOLLOW UP WITH THEM ON THEIR DESIRE TO BRING OUR PROGRAMS INTO THEIR SCHOOLS SUZANNE ALEXANDER IN BOSTON CONTRIBUTED TO THIS ARTICLE 9308020072 930802 WHO'S NEWS MCDONNELL DOUGLAS SAYS ITS PRESIDENT INTENDS TO RETIRE BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL ST LOUIS MCDONNELL DOUGLAS CORP SAID GERALD A JOHNSTON ITS 62YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER PLANS TO RETIRE AT THE END OF THE YEAR BECAUSE OF ILL HEALTH A SUCCESSOR HASN'T YET BEEN NAMED MR JOHNSTON A 38YEAR VETERAN OF THE AEROSPACE COMPANY SUFFERS FROM PANCREATITIS AN INFLAMMATION OF THE GLAND THAT SECRETES DIGESTIVE ENZYMES SINCE RETURNING TO MCDONNELL DOUGLAS IN OCTOBER OF LAST YEAR FOLLOWING A YEARLONG BOUT WITH A SERIOUS ILLNESS MY HEALTH HAS GOTTEN MUCH BETTER BUT I FIND I CAN NO LONGER CONSISTENTLY GIVE THE COMPANY THE 150 PERCENT THAT I WAS USED TO MR JOHNSTON TOLD THE BOARD LAST WEEK IN ANNOUNCING HIS PLANS I HAVE CHOSEN THE END OF 1993 BECAUSE I FEEL BY THEN WE WILL HAVE DELIVERED ON OUR PROMISED FINANCIAL REBOUND ON WHICH SO MANY OF US HAVE BEEN WORKING FOR SO LONG JOHN MCDONNELL CHAIRMAN AND CHIEF EXECUTIVE SAID THAT WHILE HE IS PERSONALLY SADDENED BY GERRY'S DECISION TO RETIRE I CERTAINLY UNDERSTAND AND SUPPORT HIS REASONS HE SAID HE PLANS TO CONSULT WITH MR JOHNSTON AS THE BOARD SEARCHES FOR A SUCCESSOR MR MCDONNELL SAID MR JOHNSTON'S EARLY ANNOUNCEMENT GIVES PLENTY OF LEAD TIME TO CONDUCT AN ORDERLY TRANSITION INDUSTRY OBSERVERS EXPECT THE CHANGE TO GO SMOOTHLY PARTICULARLY SINCE MCDONNELL DOUGLAS IS ALREADY RUN BY A FIVEMAN OFFICE OF THE CHAIRMAN WHICH INCLUDES MR MCDONNELL AND MR JOHNSTON CHIEF FINANCIAL OFFICER HERBERT J LANESE AND EXECUTIVE VICE PRESIDENTS JOHN P CAPELLUPO AND KENNETH A FRANCIS WHO HEAD MCDONNELL DOUGLAS AEROSPACE'S EASTERN AND WESTERN OPERATIONS RESPECTIVELY THERE'S BEEN AN OFFICE OF THE CHAIRMAN FOR SOME TIME AND IT SEEMS TO BE A REASONABLY STABLE SITUATION SAID WOLFGANG DEMISCH AN AEROSPACE ANALYST WITH UBS SECURITIES IN NEW YORK MR MCDONNELL LAUDED MR JOHNSTON FOR HIS HELP DURING EXTREMELY DIFFICULT CIRCUMSTANCES IN THE PAST FIVE YEARS THE COMPANY HAS SUFFERED FROM A LONGRUNNING SLUMP IN COMMERCIAL AIRPLANE ORDERS AND NUMEROUS PROBLEMS WITH ITS C17 MILITARY TRANSPORT PROGRAM BUT MCDONNELL DOUGLAS'S FORTUNES APPEAR TO BE IMPROVING WITH THE COMPANY POSTING RECORD NET INCOME OF 170 MILLION OR 433 A SHARE IN THE SECOND QUARTER DESPITE A 20 DROP IN REVENUE MR JOHNSTON WHO HAS SERVED AS PRESIDENT SINCE 1988 AND CHIEF OPERATING OFFICER SINCE 1991 JOINED MCDONNELL DOUGLAS IN 1956 AS AN ASSOCIATE ENGINEER IN GUIDANCE AND CONTROL FOR DOUGLAS AIRCRAFT CO'S FLEDGLING MISSILE AND SPACE DIVISION THE ANNOUNCEMENT CAME AFTER THE CLOSE OF NEW YORK STOCK EXCHANGE TRADING FRIDAY WHERE MCDONNELL DOUGLAS CLOSED AT 8625 UP 125 CENTS 9308020071 930802 FDIC PLANS TO SELL CROSSLAND SAVINGS VIA STOCK OFFERING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP FILED PLANS TO SELL CROSSLAND FEDERAL SAVINGS BANK A FAILED THRIFT IT TOOK OVER LAST YEAR THROUGH AN OFFERING OF 12 MILLION COMMON SHARES THE AGENCY HOPES THE SHARES WILL SELL FOR ABOUT 25 EACH BUT THE FINAL PRICE WILL DEPEND ON THE AMOUNT OF MARKET INTEREST IN THE NOVEL TRANSACTION THE OFFER IS AIMED AT INSTITUTIONAL INVESTORS ALTHOUGH FDIC OFFICIALS SAID IT'S STILL POSSIBLE THAT THEY COULD SELL CROSSLAND TO ANOTHER BANK IF THAT WOULD FETCH A BETTER PRICE BY LAW THE FDIC MUST SELL FAILED BANKS FOR THE HIGHEST POSSIBLE PRICE A PRICE OF 300 MILLION WHICH 25 A SHARE WOULD PRODUCE WOULD HELP JUSTIFY THE FDIC'S DECISION TO TAKE OVER CROSSLAND IN JANUARY 1992 NORMALLY WHEN A BANK FAILS THE AGENCY SELLS THE INSTITUTION TO ANOTHER BANK BUT THE AGENCY WAS DISAPPOINTED BY THE BIDS IT GOT FOR CROSSLAND AND DECIDED THAT IT COULD GET MORE MONEY BY TAKING OVER THE NEW YORK THRIFT WORKING DOWN ITS BAD ASSETS AND SELLING IT WHEN BANKING AND REALESTATE CONDITIONS IMPROVED THE AGENCY PUMPED 12 BILLION INTO CROSSLAND AND INSTALLED NEW MANAGEMENT THE MOVE PROVOKED CRITICISM IN CONGRESS AND FROM BANKERS WHO CONTENDED THAT THE FDIC HAS NO BUSINESS RUNNING BANKS THAT COULDN'T MAKE IT ON THEIR OWN ACCORDING TO THE OFFERING CIRCULAR THE FDIC FILED WITH THE OFFICE OF THRIFT SUPERVISION WHICH IS CROSSLAND'S PRIMARY REGULATOR THE BANK HAS ASSETS OF 53 BILLION DOWN FROM 8 BILLION WHEN IT FAILED IT HOLDS 42 BILLION IN DEPOSITS IN 35 BRANCHES THE BANK STILL HAS 11 BILLION IN NONPERFORMING LOANS AND IT WAS UNPROFITABLE IN THE FIRST SIX MONTHS OF THE YEAR EVEN AFTER THE FDIC SELLS CROSSLAND IT WILL ABSORB 80 OF NET LOAN CHARGEOFFS EXCEEDING 179 MILLION BETWEEN NOW AND JUNE 30 1998 OFFICIALS DON'T EXPECT THAT THE AGENCY WILL HAVE TO PAY MUCH IF ANY UNDER THIS ASSISTANCE AGREEMENT DESIGNED TO PROTECT WHOEVER PURCHASES THE INSTITUTION FROM LARGE UNEXPECTED LOSSES IN ADDITION THE AGENCY INTENDS TO RETAIN WARRANTS TO PURCHASE ONE MILLION CROSSLAND SHARES WHICH WILL GIVE THE FDIC AN OPPORTUNITY TO PROFIT IF THE PRICE OF THE SHARES RISES KEEFE BRUYETTE & WOODS INC IN NEW YORK AND FRIEDMAN BILLINGS RAMSEY & CO IN WASHINGTON ARE LEADING A TEAM OF FIVE FIRMS THAT IS MANAGING THE SALE 9308020070 930802 OTC FOCUS INVESTOR WHO SHOPS FOR CHEAP' STOCKS FINDS HIS SEARCH IS GROWING TOUGHER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SCOTT BLACK IS SPENDING A LOT OF TIME THESE DAYS RUMMAGING AROUND STOCK MARKET JUNKYARDS MR BLACK IS A VALUE INVESTOR THE KIND OF GUY WHO WON'T BUY A STOCK UNLESS IT'S CHEAP HE SHUNS THE FLASHY GROWTH STOCKS THAT PROMISE DOUBLEDIGIT RETURNS BUT CARRY STRATOSPHERIC PRICES WITH SMALL STOCKS SOARING THOUGH IT'S GETTING INCREASINGLY DIFFICULT TO FIND QUALITY COMPANIES THAT ARE STILL CHEAP WHAT MAKES MR BLACK'S JOB PARTICULARLY TOUGH IS THAT SMALL STOCKS ARE THE RAGE TODAY CASH IS FLOODING INTO SMALLSTOCK FUNDS AT A FRENETIC PACE AND SMALLSTOCK INDEX FUNDS THAT THROW MONEY AT THE MARKET ARE PROLIFERATING MAKING IT HARDER FOR ANY GOOD INVESTMENT IDEA TO STAY A SECRET FOR VERY LONG COMPARED TO THE OLD DAYS THE MARKET IS MUCH MORE EFFICIENT SAYS MR BLACK WHO MANAGES ABOUT 570 MILLION AT DELPHI MANAGEMENT IN BOSTON ONE OF MR BLACK'S MAIN YARDSTICKS FOR PICKING STOCKS IS A LOW PRICEEARNINGS RATIO WHICH IS CALCULATED BY DIVIDING THE CURRENT STOCK PRICE BY A COMPANY'S ANNUAL PERSHARE EARNINGS SINCE THE END OF 1988 THE PE RATIO ON THE NASDAQ COMPOSITE INDEX HAS SOARED 45 TO 2749 WHILE SOME VALUE INVESTORS WILL RAISE THEIR PE THRESHOLD AS THE MARKET'S RISES MR BLACK STUBBORNLY STICKS TO FINDING STOCKS WITH A PE OF 10 OR UNDER WHEN INVESTING IN COMPANIES THAT HAVE CONSISTENT EARNINGS GROWTH THAT'S WHY HE'S DOING A LOT OF SHOPPING AMONG JUNK STOCKS THESE DAYS IF YOU ARE A VALUE PLAYER TODAY BY DEFINITION YOU ARE BUYING FLAWED MERCHANDISE AND WAITING FOR THE COMPANY TO TURN AROUND HE SAYS SHOPPING FOR FLAWED GEMS AMONG THE JUNK THOUGH REQUIRES MORE THAN THE USUAL ANALYSIS THERE ARE PLENTY OF DEPRESSED SMALL STOCKS FLOATING AROUND AND A LOT OF THEM ARE JUNK HE SAYS HE ALSO LIKES RADIATION SYSTEMS A DESIGNER AND MAKER OF ANTENNA SYSTEMS AND PARTS FOR RADAR AIR TRAFFIC CONTROL AND OTHER APPLICATIONS HE SAYS THE STOCK COLLAPSED TO THE LOW TEENS FROM AROUND 20 A SHARE LAST YEAR THOUGH THE COMPANY'S REVENUE GROWTH STALLED HE SAYS IT WAS THE RESULT OF THE COMPANY'S DELIBERATE POLICY TO AVOID BIDDING ON LESSPROFITABLE CONTRACTS ALTHOUGH THE STOCK IS STILL LANGUISHING IT CLOSED FRIDAY AT 12 1/2 UP 1/2 AND ABOVE THE 52WEEK LOW OF 10 3/4 STOCK PICKER CHARLES ROYCE WHO MANAGES SLIGHTLY MORE THAN 1 BILLION IN SMALLCAPITALIZATION STOCKS SAYS THAT EVEN THOUGH SMALL STOCKS ARE PRICIER THAN THEY WERE A FEW YEARS AGO THERE ARE STILL SEGMENTS OF THE MARKET THAT ARE ATTRACTIVE THERE IS ONE AREA FOR SURE THAT IS NOT OVEREXPLOITED AND THAT IS THE MICROCAP AREA SAYS MR ROYCE REFERRING TO COMPANIES WITH MARKET CAPITALIZATIONS OF LESS THAN 200 MILLION THAT ZONE IS STILL VERY ATTRACTIVE IN THIS OFTENOVERLOOKED SEGMENT OF THE MARKET MR ROYCE FAVORS KIRSCHNER MEDICAL WHICH HAS A MARKET CAPITALIZATION OF ABOUT 24 MILLION AND IS TRADING AT 7 UP FROM A 52WEEK LOW OF 5 3/4 MR ROYCE ALSO SUGGESTS INVESTORS LOOK FOR VALUES IN STOCK GROUPS THAT ARE BEATENDOWN FOR INSTANCE WHEN RETAIL STOCKS CAME UNDER PRESSURE MR ROYCE GRABBED CLAIRE'S STORES AND DRESS BARN TWO WOMEN'S APPAREL STORE ISSUES THE SMALLSTOCK MARKET MAY BE HOT HE SAYS BUT WE GO WHERE THE ACTION IS NOT FLEXIBILITY IS THE BYWORD OF OTHER SMALLSTOCK INVESTORS PRESTON ATHEY WHO RUNS T ROWE PRICE ASSOCIATES' SMALLCAP VALUE FUND SAYS THAT MANY OF THE COMPANIES THAT WERE CONSIDERED TO BE GROWTH COMPANIES THREE YEARS AGO ARE NOW POPPING UP ON THE SCREEN OF VALUE INVESTORS SOME MEDICAL PRODUCT COMPANIES ARE IN THAT CATEGORY TWO YEARS AGO THERE WASN'T A BARGAIN TO BE FOUND IN SMALL MEDICAL PRODUCT COMPANIES BUT NOW THE PRICEEARNINGS RATIOS OF SOME OF THOSE COMPANIES WHICH ONCE STOOD AT 25 HAVE BEEN HALVED THE VALUE GUY MAY SAY I DON'T INVEST IN MEDICAL COMPANIES BECAUSE THEY ARE GROWTH STOCKS SAYS MR ATHEY BUT I BEG TO DIFFER BECAUSE THESE STOCKS ARE CHEAP ON A VALUE BASIS MEANWHILE THE RISE IN STOCK PRICES HAS FORCED SOME VALUE INVESTORS TO PUSH THEIR PE THRESHOLDS HIGHER AS THE OVERALL MARKET HAS CLIMBED CHRIS NAJORK WHO MANAGES ABOUT 90 MILLION IN SMALLCAP FUNDS AT DALLASBASED NFJ INVESTMENT GROUP SAYS THAT TO FULFILL HIS MANDATE TO BE FULLY INVESTED IN THE MARKET HE IS NOW FORCED TO LOOK AT STOCKS THAT HAVE PES IN THE RANGE OF 10 TO 12 AS THE MARKET HAS SOARED MR NAJORK SAYS THE OPPORTUNITIES FOR FINDING ATTRACTIVE STOCKS WITH PES UNDER 10 HAVE DIMINISHED NEVERTHELESS HE REMAINS CONVINCED THAT SMALL STOCKS STILL PRESENT INVESTORS WITH BETTER OPPORTUNITIES THAN THEIR BIGCAP BROTHERS THERE ISN'T THE BIG DISCREPANCY BETWEEN SMALLCAP AND LARGE STOCKS AS THERE WAS IN 1990 HE SAYS BUT WE STILL THINK THE SCALE IS SLIGHTLY TILTED TOWARD SMALLCAP STOCKS A SELLOFF IN SOFTWARE SUPERSTAR MICROSOFT CAST A PALL OVER THE MARKET FOR SMALL STOCKS THE NASDAQ COMPOSITE INDEX SLID 254 POINTS TO 70470 ADVANCING NASDAQ STOCKS HOWEVER LED DECLINERS 1437 TO 1286 NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS MODERATELY ACTIVE AT 211040000 SHARES DOWN FROM 232360000 THURSDAY MICROSOFT SANK 5 POINTS TO 74 ANALYSTS ON WALL STREET RAPIDLY STARTED PARING THEIR ESTIMATES FOR EARNINGS IN FISCAL 1994 AFTER THE COMPANY TOLD ANALYSTS THAT REVENUE GROWTH IN THE COMING FISCAL YEAR ISN'T LIKELY TO MATCH THE LEVEL IN THE RECENTLY ENDED FOURTH QUARTER IN ADDITION ANALYSTS NOTED THAT THE STOCK WAS PRESSURED BY A CHICAGO TRIBUNE REPORT THAT SAID THE JUSTICE DEPARTMENT HAS RECEIVED CLEARANCE TO REVIEW THE FEDERAL TRADE COMMISSION'S DEADLOCKED INVESTIGATION INTO ALLEGED ANTICOMPETITIVE PRACTICES BY MICROSOFT OTHER SOFTWARE STOCKS ALSO RETREATED ORACLE SKIDDED 1 1/2 TO 50 3/8 LOTUS DEVELOPMENT TUMBLED 2 7/8 TO 36 BORLAND INTERNATIONAL LOST 1 1/2 TO 18 3/8 AND AUTODESK SLIPPED 1 TO 41 1/4 ALLIED GROUP A DES MOINES IOWA INSURER CLIMBED 1 1/4 TO 27 THE COMPANY POSTED SECONDQUARTER EARNINGS OF 91 CENTS A SHARE UP FROM 57 CENTS A YEAR AGO AND ABOVE ANALYSTS' EXPECTATIONS COMPRESSION LABS JUMPED 1 7/8 TO 13 1/8 THE COMPANY SAID ITS SECONDQUARTER LOSS NARROWED TO NINE CENTS A SHARE FROM 19 CENTS A YEAR AGO TEKELEC JUMPED 1/2 TO 6 EVEN THOUGH IT REPORTED A SECONDQUARTER LOSS OF 92 CENTS A SHARE COMPARED WITH A YEARAGO PROFIT OF FIVE CENTS THE CALABASAS CALIF COMPANY TIED THE WEAK RESULTS TO THE TIMING OF ORDERS IT SAID IT ENTERS THE THIRD QUARTER WITH A STRONG ORDER BACKLOG OF 79 MILLION CHIPS & TECHNOLOGIES LOST 1/2 TO 3 7/8 THE SAN JOSE CALIF INTEGRATED CIRCUIT MAKER REPORTED ITS FOURTHQUARTER LOSS NARROWED TO 59 CENTS A SHARE FROM 1 A YEAR AGO DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9308020069 930802 LETTERS TO THE EDITOR TERRORISM TARGETS THE INNOCENT ALEXANDER COCKBURN'S JULY 1 COUNTERPOINT STATESPONSORED TERRORISM AMERICANSTYLE COULD EASILY GIVE ONE THE IMPRESSION THAT THE WRITER SEES A MORAL EQUIVALENCY BETWEEN PRESIDENTS REAGAN BUSH AND CLINTON ON THE ONE HAND AND CASTRO GADHAFI AND SADDAM HUSSEIN ON THE OTHER MR COCKBURN FALLS INTO THIS LOGICAL TRAP BY FAILING TO PROVIDE A COHERENT DEFINITION OF TERRORISM IF TERRORISM IS THE PURPOSEFUL MAIMING OR KILLING OF INNOCENTS TO MAKE A POLITICAL POINT HIS ARGUMENT FALLS APART TO THE EXTENT INNOCENTS HAVE DIED AS A RESULT OF AMERICAN MILITARY ACTION IN RECENT YEARS THEIR DEATHS WERE NOT THE PURPOSE OF THOSE ACTIONS MR COCKBURN HIMSELF SPECULATES THAT THE IMMEDIATE PURPOSE OF THE AL RASHID HOTEL MISSILE ATTACK WAS TO KILL SADDAM A TYRANT NOT THE TWO RECEPTIONISTS BY WAY OF CONTRAST THE IMMEDIATE PURPOSE OF TERRORISTS IS TO HARM THOSE WHO USUALLY ARE INNOCENT VICTIMS OF TIME AND PLACE SURELY MR COCKBURN CAN SEE THE MORAL DISTINCTION ONE ALSO WONDERS ABOUT MR COCKBURN'S CONCERN AS TO WHETHER THE TARGET OF THE IRAQI EXPLOSIVES WAS IN FACT MR BUSH HAD THE VEHICLE EXPLODED MANY INNOCENT PEOPLE WOULD HAVE DIED REGARDLESS OF THE ULTIMATE TARGET SURELY THIS FACT DESERVED AT LEAST A PARENTHETICAL MENTION IN MR COCKBURN'S ARTICLE ALL THE MORE SO CONSIDERING THE FACT THAT BILL CLINTON ORDERED THE MISSILE ATTACK AT A TIME WHEN OCCUPANCY OF THE IRAQI INTELLIGENCE COMPOUND WOULD BE MINIMAL THIS FACT ALONE UNDERMINES MR COCKBURN'S ENTIRE PREMISE GIVEN THE WIDE RANGE OF POLEMICAL TARGETS IN TODAY'S WORLD ONE WOULD THINK A PROFESSIONAL LIKE MR COCKBURN WOULD CONCENTRATE HIS AIM ON THOSE WHOSE PURPOSE IS TO ATTAIN AND REMAIN IN POWER BY MEANS OF MURDER SUPPRESSION OF BASIC RIGHTS AND SUBJUGATION OF WHOLE PEOPLES RATHER THAN ON THOSE WHOSE PURPOSE HOWEVER IMPERFECTLY IMPLEMENTED IS TO CONTAIN OR RID THE WORLD OF SUCH TYRANTS CONGRATULATIONS ON AGAIN PUBLISHING MR COCKBURN AFTER THIS LONG TIME WE ON THE RIGHT SHOULD NOT BE AFRAID OF EXPOSING HIS IDEAS IF WE ARE SO CONFIDENT IN OURS BUT MORE SO ON THE ISSUE OF TERRORISM AND THE MIDDLE EAST HIS IS A LONELY WARNING ALL HISTORY PROVES THE THREAT TO FREEDOM OF A PERPETUAL LARGE MILITARY ESTABLISHMENT IT WAS NECESSARY TO FIGHT THE COMMUNISTS BUT NOW MANY ON THE RIGHT SEEK ITS CONTINUANCE IN ORDER TO SUSTAIN FOREIGN INTERVENTIONS ACTIONS THAT WILL BRING ABOUT MORE ACTS OF RETALIATION AGAINST AMERICA AND CONSEQUENTLY CURTAIL EVEN MORE OF OUR FREEDOMS HERE ON ISSUES SUCH AS IRAQ AND SOMALIA IT IS AMAZING HOW MOST AMERICANS ARGUE THE PROS AND CONS OF KILLING FOREIGNERS INCLUDING 50000 DEAD IRAQI CHILDREN AS MR COCKBURN CLAIMS ON VARIOUS GROUNDS BUT ALMOST NEVER IN TERMS OF THEIR ONE DAY WRECKING VENGEANCE UPON US I ATTEND MANY CONSERVATIVE MEETINGS AND HAVE NEVER HEARD THE SUBJECT BROUGHT UP YET A FEW INSIGHTFUL PERSONS DO THINK OF IT GARY NORTH WROTE OF THE THREAT OF CONTAMINATING NEW YORK'S WATER SUPPLY AND THE PRESCIENT AUTHOR TOM CLANCY HAD AS THE PLOT OF HIS LAST BOOK MUSLIMS SETTING OFF AN ATOM BOMB AT THE SUPERBOWL GAME WE ARE IN THE STRANGE SITUATION WHERE A SEGMENT OF THE LEFT IS MORE CONSCIOUS OF THE THREATS TO OUR FREEDOMS FROM AN INTERVENTIONIST GOVERNMENT THAN IS THE RIGHT IT IS INDEED IRONIC THAT TWO OF THE MOST BASIC VIOLATIONS OF OUR FREEDOMS CAME UNDER REPUBLICANS FIRST THE RICO STATUTES UNDER RICHARD NIXON AND THEN THE CIVIL SEIZURE LAWS WHEREBY POLICE CAN SEIZE PROPERTY WITHOUT WARRANT OR TRIAL UNDER RONALD REAGAN CONSEQUENTLY THE LEFT AND RIGHT ARE NO LONGER SO CLEARLY DELINEATED SINCE THE COLLAPSE OF COMMUNISM WITNESS THE SEATING OF THE NEW PRESIDENT OF THE AMERICAN CIVIL LIBERTIES UNION AT THE HEAD TABLE FOR THE LIBERTARIAN CATO INSTITUTE'S NEW BUILDING DEDICATION BANQUET CONSERVATIVES SHOULD THINK LONG AND HARD ABOUT IF IT'S REALLY WORTH THE PRICE FOR THE SATISFACTION OF TEACHING INSOLENT THIRD WORLDERS TO RESPECT OUR POWER OR TO ESTABLISH A PAX AMERICANA SOME AMERICANS ALMOST SEEM TO WANT THE MUSLIM WORLD AS A POTENTIAL ADVERSARY WORTHY ENOUGH TO JUSTIFY THE MAINTENANCE OF OUR LARGE MILITARY ESTABLISHMENT 9308020068 930802 WHAT'S NEWS WORLDWIDE THE US SAID IT IS READY TO LAUNCH AIR ATTACKS ON ITS OWN TO END SARAJEVO'S SIEGE THE CLINTON ADMINISTRATION TOLD NATO ALLIES THAT IF NECESSARY IT IS PREPARED TO TAKE TOUGHER STEPS ALONE TO BREAK THE SERB SIEGE OF BOSNIA'S CAPITAL BUT A STATE DEPARTMENT SPOKESMAN SAID WE CERTAINLY FEEL THAT IT'S POSSIBLE WE WILL ACT WITHIN THE NATO FRAMEWORK THE AIR ATTACKS WOULD BE POSSIBLE WITHIN A MATTER OF DAYS HE SAID ADDING THAT THE US HOPES A THREAT OF FORCE WILL PERSUADE SERBS TO HALT THEIR AGGRESSION NATO WILL MEET TODAY TO CONSIDER THE US PLAN BOSNIA'S MUSLIMS SERBS AND CROATS AGREED TENTATIVELY FRIDAY ON A PLAN TO PARTITION BOSNIA BUT THERE HAS BEEN NO ACCORD ON A MAP FOR THE DIVISION AND THE FIGHTING HASN'T STOPPED REFUGEES BEGAN RETURNING TO SOUTHERN LEBANON AS ISRAELI TANKS WITHDREW TENS OF THOUSANDS OF PEOPLE BEGAN MOVING BACK TO THEIR VILLAGES AS ISRAELI TANKS WITHDREW FOLLOWING A USBROKERED CEASEFIRE THE TRUCE WHICH TOOK EFFECT SATURDAY ENDED A WEEKLONG ISRAELI ASSAULT THAT POLICE SAID KILLED 140 PEOPLE AND WOUNDED NEARLY 500 LATE YESTERDAY THE LEBANESE GOVERNMENT AGREED TO DEPLOY TROOPS IN SOUTHERN LEBANON TO HINDER GUERRILLA ACTIVITY AGAINST ISRAEL THE LEADER OF THE HEZBOLLAH GUERRILLAS DECLARED HOWEVER THAT NO ONE HAS ASKED US TO GIVE UP OUR WEAPONS THE CEASEFIRE WAS NEGOTIATED OVER THE PHONE BY SECRETARY OF STATE CHRISTOPHER WHO THEN FLEW TO THE MIDEAST FOR A SERIES OF MEETINGS THIS WEEK THE MISSISSIPPI RIVER ROSE TOWARD A RECORD CREST IN ST LOUIS EXPECTED TO ARRIVE BY TODAY BUT THE CITY'S 11MILELONG LEVEE STOOD FIRM DESPITE BREAKS IN OTHER EMBANKMENTS TO THE SOUTH WEST AND NORTH TO THE NORTH OF ST LOUIS THE MISSISSIPPI BURST THROUGH A SANDBAG LEVEE AND FLOODED THE DOWNTOWN AREA OF ALTON ILL POLICE SAID AT LEAST 35 PEOPLE WERE KILLED IN A SOUTH AFRICAN TOWNSHIP CLASH SATURDAY NIGHT OVERSHADOWING EFFORTS TO PROD BLACK AND WHITE CONSERVATIVES TO REJOIN DEMOCRACY TALKS THE TEMBISA FIGHTING ERUPTED WHEN 200 MIGRANT WORKERS MOST OF THEM MEMBERS OF THE INKATHA PARTY CHARGED THROUGH THE STREETS ATTACKING RESIDENTS OFFICIALS SAID ISRAEL'S SUPREME COURT POSTPONED JOHN DEMJANJUK'S DEPORTATION TO UKRAINE BY 10 DAYS TO GIVE PROSECUTORS TIME TO DECIDE WHETHER TO REOPEN AN INVESTIGATION INTO HIS NAZI PAST ON THURSDAY THE COURT CLEARED HIM OF BEING THE TREBLINKA CAMP GUARD IVAN THE TERRIBLE DEMJANJUK IS BEING HELD IN A PRISON NEAR TEL AVIV THE LIBERAL DEMOCRATIC PARTY PICKED A NEW LEADER FRIDAY YOHEI KONO 56 TO SUCCEED KIICHI MIYAZAWA JAPAN'S PRIME MINISTER KONO WAS ONCE SO DISGUSTED WITH LDP PRACTICES THAT HE QUIT THE PARTY FOR 10 YEARS THE LDP IS EXPECTED TO LOSE CONTROL OF THE JAPANESE GOVERNMENT TO A SEVENPARTY COALITION THIS WEEK SENATE AND HOUSE NEGOTIATORS PUT THE FINISHING TOUCHES ON A PLAN TO OVERHAUL THE PROGRAM THAT LENDS 15 BILLION ANNUALLY TO 34 MILLION STUDENTS IN ABOUT 7000 UNIVERSITIES COMMUNITY COLLEGES AND TRADE SCHOOLS THE PROPOSAL HAMMERED OUT FRIDAY CALLS FOR THE GOVERNMENT INSTEAD OF BANKS TO MAKE 60 OF THE LOANS THE FBI INTERVIEWED WHITE HOUSE STAFF MEMBERS ABOUT A DELAY IN THE HANDLING OF A NOTE WRITTEN BY DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER FOUND DEAD LAST MONTH OF AN APPARENT SUICIDE THE WHITE HOUSE PRESS SECRETARY SAID THE STAFF WANTED TO NOTIFY FOSTER'S FAMILY AND CLINTON BEFORE GIVING OFFICIALS THE NOTE JOYCELYN ELDERS WAS RECOMMENDED FOR CONFIRMATION AS US SURGEON GENERAL BY THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE FRIDAY'S VOTE WAS 134 HER CONFIRMATION BY THE FULL SENATE SEEMS VIRTUALLY CERTAIN BUT REPUBLICANS ARE PUSHING TO DELAY A VOTE UNTIL SEPTEMBER RUSSIAN FORCES IN TAJIKISTAN DROVE A GROUP OF ISLAMIC REBELS INTO AFGHANISTAN KILLING OVER 100 OF THEM RUSSIAN OFFICERS SAID RUSSIA ALSO THREATENED TO STRIKE AT REBEL BASES IN AFGHANISTAN DIED KING BAUDOUIN 62 BELGIAN MONARCH WHO TRIED TO EASE TENSIONS BETWEEN FRENCH AND FLEMISHSPEAKING GROUPS DURING HIS 42YEAR REIGN SATURDAY IN MOTRIL SPAIN OF A HEART ATTACK REP PAUL HENRY 51 MICHIGAN REPUBLICAN ELECTED LAST FALL TO A FIFTH TERM IN CONGRESS SATURDAY IN GRAND RAPIDS MICH OF BRAIN CANCER 9308020067 930802 INTERNATIONAL QANTAS AIR'S WARD QUITS AS CHIEF OFFICER SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA JOHN WARD RESIGNED AS CHIEF EXECUTIVE OFFICER OF QANTAS AIRWAYS HE HAD BEEN CHIEF EXECUTIVE OF THE GOVERNMENTCONTROLLED INTERNATIONAL CARRIER SINCE 1989 BRITISH AIRWAYS ACQUIRED A 25 STAKE IN QANTAS LAST DECEMBER FOR 665 MILLION AUSTRALIAN DOLLARS US4521 MILLION THE AUSTRALIAN GOVERNMENT PLANS TO SELL THE REST OF THE QANTAS THROUGH AN INITIAL PUBLIC OFFERING IN FISCAL 1995 AUSTRALIAN NEWSPAPERS HAVE SPECULATED ABOUT MR WARD'S POSITION AFTER HE WAS SAID TO PREFER THAT QANTAS STAY IN AUSTRALIAN HANDS RATHER THAN TAKE ON A MAJOR FOREIGN AIRLINE AS A SHAREHOLDER HE TOLD A DOMESTIC NEWS SERVICE THAT HE RESIGNED FOR A HOST OF REASONS BUT SAID HIS DECISION WASN'T RELATED TO BRITISH AIRWAYS' INVOLVEMENT WITH QANTAS GARY PEMBERTON RECENTLY NAMED CHAIRMAN OF QANTAS WILL ASSUME THE ROLE OF CHIEF EXECUTIVE UNTIL A SUCCESSOR IS NAMED IN A FEW WEEKS ROD EDDINGTON AN AUSTRALIAN EXECUTIVE WORKING FOR CATHAY PACIFIC AIRWAYS IN HONG KONG HAS BEEN MENTIONED IN REPORTS AS AMONG CANDIDATES FOR THE JOB 9308020066 930802 INTERNATIONAL WASHINGTON INSIGHT US EUROPEAN ALLIES DISCUSS ACTION AGAINST LIBYA SHORT OF OIL EMBARGO BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON RETALIATED SWIFTLY FOR IRAQ'S BUNGLED ATTEMPT TO ASSASSINATE FORMER PRESIDENT BUSH BUT HE APPLIES A SOFTER STANDARD TO LIBYA NEARLY TWO YEARS AGO THE US INDICTED TWO LIBYAN OPERATIVES IN THE BOMBING OF PAN AM 103 IN WHICH 189 AMERICANS WERE KILLED NOW FOR THE SECOND TIME SINCE THEN THE US AND ITS EUROPEAN ALLIES ARE TALKING ABOUT INCREASING PRESSURE ON TRIPOLI IF IT DOESN'T TURN OVER THE SUSPECTS BUT THE MEASURES CURRENTLY BEING DISCUSSED FALL CONSIDERABLY SHORT OF THE ONE ACTION AN INTERNATIONAL OIL EMBARGO THAT MIGHT SHAKE UP COL MOAMMAR GADHAFI'S REGIME ENOUGH TO MAKE IT COUGH UP THE TWO LIBYANS WASHINGTON WHICH ALREADY HAS A TOTAL TRADE EMBARGO OF LIBYA IS UNABLE TO PERSUADE ITS EUROPEAN ALLIES TO GO ALONG WITH AN OIL EMBARGO SO THE US IS PUSHING FOR A FREEZE ON LIBYA'S FOREIGN ASSETS AND AN EMBARGO ON OILINDUSTRY EQUIPMENT THE EUROPEANS HOWEVER ARE EXPECTED TO TRY TO WATER DOWN EVEN THESE MEASURES ACCORDING TO DIPLOMATS THEY WANT TO EXCLUDE FROM THE ASSETS FREEZE ANY REVENUE LIBYA DERIVES FROM CURRENT OIL SALES AND TO LIMIT THE OILEQUIPMENT ITEMS THAT WOULD BE EMBARGOED SOME US OFFICIALS SAY THAT MAY BE THE BEST THE US CAN GET IN TALKS SCHEDULED FOR THIS WEEK BEFORE THE PERIODIC REVIEW OF UNITED NATIONS SANCTIONS LATER THIS MONTH THAT PASSIVE US ATTITUDE IS FAR DIFFERENT FROM THE AGGRESSIVE TONE STRUCK BY CANDIDATE BILL CLINTON DURING THE PRESIDENTIAL CAMPAIGN IN A LETTER IN SEPTEMBER TO DANIEL AND SUSAN COHEN WHOSE 20YEAROLD DAUGHTER THEODORA WAS KILLED IN THE PAN AM BOMBING MR CLINTON VOWED THAT IF THE SUSPECTS AREN'T TURNED OVER THE US WILL PRESS THE UNITED NATIONS TO BROADEN THE SANCTIONS TO INCLUDE AN OIL EMBARGO MR CLINTON NOTED THAT UN SANCTIONS SLAPPED ON LIBYA IN APRIL 1992 INCLUDING A BAN ON INTERNATIONAL AIR LINKS AND ARMS SALES TO LIBYA HAVE HAD LITTLE EFFECT HENRY SCHULER AN EXPERT ON LIBYA AND THE INTERNATIONAL OIL INDUSTRY AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES BELIEVES IT IS TIME FOR A NEW APPROACH HE NOTES THAT WITH THE WORLD AWASH IN OIL A CUTOFF OF LIBYAN OIL WOULD HAVE MINIMAL IMPACT ON WORLD OIL PRICES SUBSTITUTES EXIST EVEN FOR LIBYA'S CRUDE WHICH IS PARTICULARLY DESIRABLE BECAUSE OF ITS LOW SULPHUR CONTENT IN A LETTER TO SECRETARY OF STATE WARREN CHRISTOPHER MR SCHULER SAYS THE US SHOULD TAKE THE ISSUE OUT OF THE UN WHERE IT HAS BEEN DEBATED ENDLESSLY HE SAYS THE US SHOULD INVOKE ITS RIGHT OF SELFDEFENSE UNDER INTERNATIONAL LAW AS IT DID IN THE RETALIATORY RAID ON BAGHDAD THEN WITH THE TACIT THREAT OF A US MILITARY STRIKE AGAINST LIBYA HANGING IN THE AIR WASHINGTON SHOULD DEMAND THAT ITS ALLIES FALL IN LINE WITH AN OIL EMBARGO THERE IS STRONG CONGRESSIONAL SUPPORT FOR AN OIL EMBARGO LAST WEEK DEMOCRATIC SEN EDWARD KENNEDY OF MASSACHUSETTS AND REPUBLICAN SEN ALFONSE D'AMATO OF NEW YORK SENT PRESIDENT CLINTON A LETTER SIGNED BY 55 SENATORS URGING SUCH A MOVE A SENIOR US OFFICIAL IN A COMMENT REMINISCENT OF THE ADMINISTRATION'S FAILURE LAST SPRING TO LEAD THE ALLIES TOWARD A MORE DECISIVE POLICY IN BOSNIA SAYS THAT WHAT'S IMPORTANT TO US IS TO INCREASE THE PRESSURE BUT WE CAN'T DO IT OURSELVES THE OFFICIAL ADDS THAT WE ARE MOVING THE BALL ALTHOUGH NOT AS FAR AS WE'D LIKE BUT AN INCREMENTAL APPROACH IS LIKELY TO FAIL LIBYA ALREADY HAS BEGUN MOVING ITS LIQUID ASSETS BEYOND THE REACH OF AN ASSETS FREEZE MR SCHULER SAYS HE HAS BEEN TOLD BY LIBYAN EXILES THAT COL GADHAFI IS CONVERTING LIBYAN ASSETS INTO BEARER BONDS AND CERTIFICATES AND DEPOSITING THEM IN BANKS IN BAHRAIN AND LIBYA'S FOREIGN MINISTER SAID DURING A VISIT EARLIER THIS YEAR TO MALAYSIA THAT HIS GOVERNMENT PLANNED TO SHIFT SOME ASSETS FROM EUROPE TO ASIA WHERE THEY WOULD BE LESS VULNERABLE ACCORDING TO PUBLISHED REPORTS STOCKPILING EQUIPMENT MOREOVER ACCORDING TO A CONGRESSIONAL AIDE US INTELLIGENCE SOURCES ESTIMATE THAT LIBYA HAS STOCKPILED ENOUGH OILINDUSTRY EQUIPMENT SO THAT IT WOULDN'T FEEL THE PINCH FROM AN EMBARGO FOR ABOUT A YEAR THE ADMINISTRATION'S SLOW APPROACH WILL ONLY MAKE THE EUROPEANS MORE RECALCITRANT FRANCE WHICH RECENTLY AGREED TO INVEST AS MUCH AS 1 BILLION TO HELP DEVELOP THE MABRUK OIL FIELD IN LIBYA WOULD BE EVEN MORE UNLIKELY TO AGREE TO AN OIL FREEZE ONCE ITS STAKE THERE INCREASES IN HIS LETTER TO THE COHENS MR CLINTON SAID IF ELECTED I WILL DO WHAT IS RIGHT AND NECESSARY TO SEND A MESSAGE THAT INDIVIDUALS WHO ENGAGE IN AND COUNTRIES WHICH LEND SUPPORT FOR TERRORIST ACTIVITIES WILL PAY A HIGH PRICE FOR DOING SO SO FAR THAT MESSAGE HASN'T BEEN DELIVERED 9308020065 930802 GM VW CHIEFS PLAN TO DISCUSS LOPEZ DISPUTE CHANCE FOR TRUCE APPEARS REMOTE AS CAR WAR' ESCALATES IN GERMANY BY WALL STREET JOURNAL REPORTERS JOSEPH B WHITE IN DETROIT AND AUDREY CHOI IN DUSSELDORF GENERAL MOTORS CORP'S CHAIRMAN JOHN F SMITH JR AND HIS COUNTERPART AT VOLKSWAGEN AG FERDINAND PIECH HAVE AGREED TO TALK EARLY THIS WEEK EVEN AS THE WAR OVER CHARGES THAT VW'S PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA STOLE GM SECRETS PROMISES TO ESCALATE AGAIN OVER THE WEEKEND VW PUT OUT A SERIES OF STATEMENTS AIMED AT BLUNTING NEW ACCUSATIONS THAT MR LOPEZ WAS GATHERING UP GM DOCUMENTS AFTER HE SIGNED A CONTRACT WITH VW ON MARCH 9 VW ALSO PUT OUT A MORE DETAILED CHRONOLOGY OF EVENTS SURROUNDING MR LOPEZ'S ABRUPT DEPARTURE FROM GM LAST MARCH 15 APPARENTLY AIMED AT SHOWING THAT GM OFFICIALS PRESSURED MR LOPEZ TO BREAK HIS CONTRACT WITH VW UNTIL HE WAS A BROKEN MAN MEANWHILE GERMAN PROSECUTORS ARE EXPECTED TO QUESTION MR LOPEZ SOON ABOUT DOCUMENTS FOUND IN A WIESBADEN APARTMENT THAT APPEAR TO BE CONFIDENTIAL GM PLANS PREPARED AT HIS REQUEST MR LOPEZ WAS EXPECTED BACK AT WORK AT VW'S WOLFSBURG GERMANY HEADQUARTERS TODAY VW SAID YESTERDAY THAT MR LOPEZ WILL ASSIST IN THE EXPLANATION OF HIS ACTIVITIES AT GM IN THE FRAMEWORK OF THE INVESTIGATION AMID THE CONFUSION PROSPECTS ARE DIM THAT ANY CONVERSATION BETWEEN MESSRS SMITH AND PIECH WILL PRODUCE A TRUCE IN WHAT THE GERMAN PRESS HAS DUBBED THE AUTOKRIEG OR CAR WAR BETWEEN VW AND GM AND ITS GERMAN SUBSIDIARY ADAM OPEL AG PRESS SENIOR OFFICIALS OF THE GERMAN GOVERNMENT AND INFLUENTIAL VOICES IN THE GERMAN PRESS HAVE TURNED UP PRESSURE ON VW AND GM TO HALT THEIR PUBLIC BATTERING OF EACH OTHER BUT THE TWO SIDES SEEMED FARTHER APART THAN EVER YESTERDAY VW STOCK FELL FURTHER IN FRANKFURT ON FRIDAY CLOSING AT 34820 MARKS 20004 DOWN 780 MARKS OR 22 THE OVERALL FRANKFURT MARKET ALSO DECLINED AMID UNCERTAINTY ABOUT THE FUTURE OF EUROPE'S EXCHANGE RATE MECHANISM THE DAX 30STOCK INDEX OF WHICH VW IS A COMPONENT FELL 17 MR PIECH SAID IN STATEMENTS FRIDAY AND OVER THE WEEKEND THAT HE HOPES TO CALM THE PUBLIC DISPUTE BUT GM AND MR SMITH HAVE SHOWN NO SIGNS OF BACKING DOWN AND INSTEAD ARE ELABORATING ON CHARGES THAT MR LOPEZ AND SEVERAL ASSOCIATES TOOK SECRET COST AND PRODUCT DATA VITAL TO OPEL AND GM STRATEGIES AGAINST VW IN EUROPE LATIN AMERICA AND ASIA GM OFFICIALS STRESS THAT GERMAN PROSECUTORS AND THE US JUSTICE DEPARTMENT ARE CONDUCTING CRIMINAL INVESTIGATIONS THAT THEY COULD CONTINUE TO PURSUE REGARDLESS OF ANY CIVIL AGREEMENTS MR SMITH AND MR PIECH MIGHT REACH MR PIECH MEANWHILE HAS STAKED HIS OWN PRESTIGE ON DECLARATIONS THAT HIS HANDPICKED COSTCUTTER MR LOPEZ IS INNOCENT OF WRONGDOING AND THE VICTIM OF A GM VENDETTA BACKING DOWN COULD UNDERMINE MR LOPEZ'S RESTRUCTURING CRUSADE AT VW AND MR PIECH'S OWN GRIP ON POWER BUT YESTERDAY VW ACKNOWLEDGED THAT MR LOPEZ HAD ATTENDED A MEETING AT GM'S ADAM OPEL SUBSIDIARY ON MARCH 10 THE DAY AFTER HE SIGNED A CONTRACT TO JOIN VW MR LOPEZ ALSO SAID HE HAD EARLIER ARRANGED FOR DOCUMENTS TO BE SENT FROM OPEL TO AN ADDRESS IN SPAIN BUT REQUESTED NO PAPERS ON MARCH 10 MR LOPEZ SAID IN HIS STATEMENT THAT THE MEETING WAS ROUTINE AND THAT THE DOCUMENTS HE HAD SHIPPED TO SPAIN WERE PERSONAL PAPERS NOT GM SECRETS ON ANOTHER ISSUE MR LOPEZ REITERATED THAT HE DIDN'T DECIDE TO JOIN VW UNTIL MARCH 9 AFTER GM OFFICIALS SURPRISED HIM ON MARCH 8 WITH A DECISION TO PUT IN HUNGARY OR POLAND AN INNOVATIVE PLANT DUBBED PLATEAU SIX THAT HE HAD HOPED TO WIN FOR HIS NATIVE BASQUE REGION OF SPAIN GM EARLIER HAD SUGGESTED THAT MR LOPEZ KNEW ON JAN 14 THAT HIS BASQUE PLANT PROJECT WOULD BE SHELVED MR LOPEZ SAID IT WAS THE CHANGE OF LOCATION NOT THE DELAY THAT CAUSED HIM TO LEAVE GM MEANWHILE VW'S TOP PERSONNEL EXECUTIVE JENS NEUMANN RELEASED MORE DETAILS OF VW'S WOOING OF MR LOPEZ IN MR NEUMANN'S HOURBYHOUR CHRONOLOGY HE STATES THAT MR LOPEZ CALLED HIM AT 1045 AM DETROIT TIME ON MARCH 15 TO SAY THAT HE WOULD COME TO VW IMMEDIATELY RATHER THAN SIGN A FIVEYEAR CONTRACT AS GM OFFICIALS HAD DEMANDED MR LOPEZ EARLIER HAD ASSURED MR PIECH THAT HE WOULD REMAIN AT GM FOR ONLY ONE MORE YEAR BEFORE GOING TO VW MR NEUMANN ALSO STATES THAT MR LOPEZ TOLD HIM HE HAD GONE FOUR DAYS WITHOUT SLEEP IN THE CHRONOLOGY MR NEUMANN SAYS MR LOPEZ TOLD HIM ON MARCH 13 THAT HE WANTED TO STAY AT GM BECAUSE MR SMITH AND SEVERAL OTHER GM OFFICERS HAD DECLARED THAT WITHOUT HIM GM COULD GO BANKRUPT AND 400000 FAMILIES WORLDWIDE WOULD BE OUT OF WORK A GM SPOKESMAN YESTERDAY DISMISSED THAT CONTENTION 9308020064 930802 CONSERVATIVES IN BRITAIN FACE HARD QUESTIONS LOSS IN RECENT BYELECTION IS BLOW TO TORIES' HOPES OF STAYING IN POWER BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON JOHN MAJOR HAS LOST ANOTHER BATTLE CAN HE STILL WIN THE WAR AS EXPECTED BRITAIN'S CONSERVATIVE PARTY SUFFERED A DEVASTATING DEFEAT BY THE LIBERAL DEMOCRATS IN A PARLIAMENTARY BYELECTION THURSDAY IN THE SOUTHERN ENGLISH TOWN OF CHRISTCHURCH IT WAS THE TORIES' SECOND BYELECTION DISASTER IN THREE MONTHS AND IT CUT MR MAJOR'S MAJORITY IN THE HOUSE OF COMMONS TO 17 SEATS FROM 21 AFTER BRITAIN'S LAST GENERAL ELECTION IN APRIL 1992 THOUGH NO IMMEDIATE CHALLENGE TO MR MAJOR'S LEADERSHIP IS THOUGHT LIKELY THE LATEST SETBACK RAISES SERIOUS QUESTIONS ABOUT BOTH HIS OWN POLITICAL FUTURE AND THE TORIES' ABILITY TO HOLD ON TO POWER IN THE NEXT GENERAL ELECTION WHENEVER THAT IS THERE IS NO DOUBT AT ALL THAT THE CONSERVATIVES ARE GOING TO FIND IT VERY DIFFICULT TO HANG ON TO MANY OF WHAT WERE THEIR SAFEST SEATS OBSERVES PATRICK SEYD A LECTURER IN POLITICS AT SHEFFIELD UNIVERSITY IF THERE WAS AN ELECTION IN THE IMMEDIATE FUTURE WE WOULD HAVE A LABOURLIBERAL DEMOCRAT GOVERNMENT IN ONE CRUMB OF COMFORT FOR MR MAJOR THE LOSS OF CHRISTCHURCH COINCIDED WITH A RULING IN HIS FAVOR BY THREE HIGH COURT JUDGES WHO HAD BEEN ASKED TO DECIDE WHETHER HIS GOVERNMENT WAS CONSTITUTIONALLY ENTITLED TO RATIFY THE MAASTRICHT TREATY ON EUROPEAN UNION REJECTING A SUIT BROUGHT AGAINST THE GOVERNMENT BY THE FORMER EDITOR OF THE TIMES NEWSPAPER LORD REESMOGG THE JUDGES ORDERED THE PLAINTIFF TO PAY THE COSTS OF THE TRIAL THOUGH LORD REESMOGG HAS THE RIGHT TO APPEAL HE IS WIDELY EXPECTED TO ABANDON FURTHER ATTEMPTS TO PREVENT RATIFICATION THOUGH BRITISH RATIFICATION OF MAASTRICHT MAY NOW BE SET THE DIVISIONS IT HAS EXPOSED WITHIN THE CONSERVATIVE PARTY MAY WELL SCUTTLE TORY HOPES OF STAYING IN POWER AFTER THE NEXT GENERAL ELECTION EUROPE IS A MAJOR DIVISIVE FACTOR FOR THE TORIES IN THE WAY THAT REPEAL OF THE CORN LAWS WAS IN THE 1840S AND THE WAY TARIFF PROTECTION WAS IN THE EARLY 20TH CENTURY SAYS MR SEYD IN BOTH PREVIOUS INSTANCES HE POINTS OUT INTERNAL DIVISIONS COST THE PARTY A TEMPORARY LOSS OF POLITICAL POWER AT CHRISTCHURCH IN WHAT AMOUNTED TO THE BIGGEST ELECTORAL SWING AGAINST A SITTING BRITISH GOVERNMENT SINCE 1945 THE LIBERAL DEMOCRAT CANDIDATE 48YEAROLD FORMER TEACHER DIANA MADDOCK OVERTURNED A TORY MAJORITY OF MORE THAN 23000 TO WIN A MAJORITY OF HER OWN OF MORE THAN 16000 THE BYELECTION HAD BEEN CAUSED BY THE DEATH OF A SITTING CONSERVATIVE MEMBER OF PARLIAMENT ONE MAJOR ISSUE IN THE CAMPAIGN WAS A GOVERNMENT PLAN TO TAX HOUSEHOLD CONSUMPTION OF OIL ELECTRICITY AND GAS FROM NEXT APRIL MANY CHRISTCHURCH RESIDENTS ARE PENSIONERS AND THEY OBJECTED BITTERLY TO A PLAN THAT WILL HIT THEIR POCKETS HARD ALONG WITH DISCONTENTED FORMER TORY SUPPORTERS MANY LABOUR VOTERS ALSO SWITCHED TO THE LIBERAL DEMOCRATS IN A BID TO INFLICT MAXIMUM DAMAGE ON THE CONSERVATIVES SUCH TACTICAL VOTING IF REPEATED IN A GENERAL ELECTION COULD RESULT IN A MASSIVE DEFEAT FOR THE TORIES ACCORDING TO AN OPINION POLL BY THE MORI POLLING AGENCY ON FRIDAY THE CONSERVATIVES ARE NOW TRAILING BOTH THE LABOR PARTY AND THE LIBERAL DEMOCRATS FOR THE FIRST TIME IN MORE THAN 10 YEARS THE POLL PUBLISHED IN THE SUNDAY TIMES GAVE LABOR 41 OF VOTING INTENTIONS THE LIBERAL DEMOCRATS 28 AND THE TORIES 27 TORY POLITICIANS INSISTED THAT THE LOSS OF CHRISTCHURCH WAS THE RESULT OF AN UNDERSTANDABLE PROTEST VOTE AGAINST THE GOVERNMENT AFTER A LENGTHY RECESSION AS SUCH THEY SAID IT DOESN'T NECESSARILY HERALD A GENERAL ELECTION DEFEAT A BYELECTION ALWAYS GIVES AN EXAGGERATED IMPRESSION OF PEOPLE'S DISSATISFACTION COMMENTED SIR IVAN LAWRENCE A CONSERVATIVE MP ADDS JOHN WATTS TORY CHAIRMAN OF THE HOUSE OF COMMONS SELECT COMMITTEE ON TREASURY AFFAIRS AS THE ECONOMY CONTINUES TO IMPROVE WE WILL GET BACK INTO THE SORT OF SITUATION WHERE THE GOVERNMENT MIGHT BE ABLE TO HOLD A SEAT AT A BYELECTION MR MAJOR HIMSELF THOUGH ADMITTING THE RESULT AT CHRISTCHURCH WAS VERY DISAPPOINTING INSISTED HE WOULDN'T BE DEFLECTED FROM HIS GOVERNMENT'S PLANS TO IMPOSE A VALUE ADDED TAX ON FUEL IN TWO STAGES STARTING NEXT YEAR THE TAX WAS NEEDED BOTH TO CURB THE GOVERNMENT'S BUDGET DEFICIT AND TO PROTECT THE ENVIRONMENT BY DISCOURAGING WASTEFUL USE OF ENERGY HE DECLARED DESPITE HIS DETERMINATION NONETHELESS SOME TORIES FEAR THE TAX STILL COULD BLOW UP INTO A MAJOR POLITICAL PROBLEM FOR THE GOVERNMENT IN THE SAME WAY AS MARGARET THATCHER'S POLL TAX WHICH MR MAJOR EVENTUALLY HAD TO WITHDRAW THE PRIME MINISTER'S NEXT MAJOR HURDLE IS THE CONSERVATIVE PARTY'S ANNUAL CONFERENCE IN OCTOBER IN BLACKPOOL WHERE HE IS EXPECTED TO FACE SEVERE PRESSURE FROM TORY DISSIDENTS UPSET WITH THE PARTY'S WEAK ELECTORAL SHOWING 9308020063 930802 WE'RE SURPRISED US TOY MAKERS HAVEN'T TRIED THIS WITH CHILDREN BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO OH MY ACHIN' ECONOMY A HUGE QUEASY APE TOWERS OVER TOKYO ONE GIANT PAW GRASPING A SKYSCRAPER IT'S NOT KING KONG RECOVERING FROM BAD SUSHI THOUGH IT'S JAPAN'S HANSEI ZARU THE REGRETFUL MONKEY WHO USUALLY PITCHES HANGOVER REMEDIES THIS TIME HE'S PART OF THE JAPANESE TREND OF ADVERTISEMENTS HUMBLY PEGGED TO THE AILING ECONOMY WE'VE BEEN SERIOUSLY HIT BY THE ECONOMIC COLLAPSE THE HUNGOVER MACAQUE SAYS IN A NEWSPAPER AD ON BEHALF OF THE TOKYO REAL ESTATE UNION HE CASTS A BLEARY EYE UPON HIS TOWERING AND VACANT CITY IT'S HARD TO CLOSE EVEN ONE DEAL COULD YOU PLEASE BUY OUR REAL ESTATE THE PLAINTIVE PRIMATE MAY BE APING AN EARLIER PLEA FROM NOMURA SECURITIES CO WHEN THE STOCK MARKET BEGAN TO FALL LAST YEAR NOMURA RAN AN AD THAT SAID STOCKS ARE CRYING BECAUSE NO ONE LOVED THEM THE NOTSOSUBTLE MESSAGE ADOPT A STOCK WE'D LOVE THE COMMISSION ON THE SALE IN ITS OWN EFFORT TO COAX BUYERS TOYO SECURITIES CO SHOWS TWO SHY DUCKS DISCUSSING WHETHER THE TIME IS RIGHT TO BUY STOCKS IT'S A GOOD IDEA TO BUY STOCKS WHEN THEY'RE CHEAP AND SAVE THEM SON THE ELDER DUCK ADVISES SOUND ADVICE BUT IN COLLOQUIAL JAPANESE A KAMO OR DUCK IS ALSO THE CON MAN'S TARGET A SUCKER A TOYO OFFICIAL SAYS THERE WAS NO PUN INTENDED OTHER ADS CHOOSE LIKE THE MONKEY TO MEDITATE MORE DIRECTLY ON JAPAN'S SLUMPING ECONOMY PRAY FOR A RECOVERY OF BUSINESS CONDITIONS PROCLAIMS A 25FOOTWIDE 80FOOTHIGH BANNER THAT IS THE FOCUS OF A NEWSPAPER AD FOR THE TOSHIMAEN AMUSEMENT PARK HERE THE BANNER IS SHOWN HANGING FROM A GIANT BUCCANEER'S MOUTH AT THE FLYING PIRATES ADVENTURE RIDE IN THE FOREGROUND A JAPANESE FAMILY HUDDLES WITH HANDS CLASPED AND HEADS BOWED TOWARD THE RIDE BEHIND THE PRAYER BANNER A SCORE OF THRILL SEEKERS SHRIEK AS THEY SWOOP ON A HUGE GALLEON AVAST SACRILEGE NOT NECESSARILY IN JAPAN IT'S COMMON TO HAVE YOUR NEW CAR BLESSED AT A BUDDHIST TEMPLE AND BUSINESSBOOSTING SHRINES GRACE THE TOWERS OF MAJOR JAPANESE CORPORATIONS SO IT'S ONLY FAIR THAT THE ECONOMY GETS A PRAYER TOO TOSHIMAEN PLANNED A MINISHRINE AT THE BASE OF FLYING PIRATES WHERE PLAYGROUND PILGRIMS COULD MAKE FINANCIAL ENTREATIES BUT JUST AS IT HASN'T BEEN A BANNER YEAR FOR THE ECONOMY IT HASN'T BEEN A YEAR FOR ECONOMIC BANNERS AFTER THE SIGN SHREDDED IN HIGH WINDS TOSHIMAEN SCUTTLED PLANS FOR THE SHRINE 9308020062 930802 NORTHERN TELECOM AND MOTOROLA TO STOP SELLING CELLULARNETWORK GEAR TOGETHER BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NORTHERN TELECOM LTD AND MOTOROLA INC AGREED TO QUIT SELLING CELLULARTELEPHONE NETWORK EQUIPMENT TOGETHER UNDER A JOINT VENTURE ESTIMATED TO HAVE REVENUES OF BETWEEN 500 MILLION AND 1 BILLION THE VENTURE MOTOROLA NORTEL COMMUNICATIONS CO WAS FORMED IN FEBRUARY 1992 TO DEVELOP AND SELL CELLULARPHONE NETWORK EQUIPMENT IN NORTH CENTRAL AND SOUTH AMERICA BY DRAWING ON THE COMPANIES' STRENGTHS MOTOROLA'S RADIOCOMMUNICATION TECHNOLOGY USED IN CELLULAR NETWORKS AND NORTHERN TELECOM'S SWITCHING SYSTEMS THAT ROUTE PHONE TRAFFIC BUT THE VENTURE HAS FALLEN VICTIM TO DISSATISFACTION EXPRESSED BY CUSTOMERS WHO PREFERRED TO DEAL WITH THE COMPANIES DIRECTLY INSTEAD OF WITH THE VENTURE THE TWO COMPANIES ALSO DISAGREE ABOUT WHICH OF TWO RIVAL DIGITAL TECHNOLOGIES WILL BECOME A MORE WIDELY ACCEPTED STANDARD BY CELLULAR CARRIERS MOTOROLA NORTEL IS EFFECTIVELY A SHELL OPERATION NOW AND WON'T POST ANY SIGNIFICANT SALES IN THE FUTURE SAID DAVID TWYVER GROUP VICE PRESIDENT OF CELLULAR SYSTEMS FOR NORTHERN TELECOM THE VENTURE'S EMPLOYEES WILL BE REEMPLOYED BY THE PARENT COMPANIES THOUGH IT WILL CONTINUE TO DEVELOP JOINT CELLULAR NETWORK PRODUCTS THE VENTURE ALSO IS A VICTIM OF THE UNKNOWN PACE AND DIRECTION OF CELLULAR TECHNOLOGY AND A DIVERGENCE OF VISION ABOUT WHERE THE MARKET IS GOING MR TWYVER SAID ONE OF THE RIVAL TECHNOLOGIES CDMA BREAKS A MESSAGE INTO SMALL BITS LABELS IT WITH A UNIQUE CODE AND SPREADS IT THROUGH A PART OF THE RADIO SPECTRUM MANY CONVERSATIONS AND DATA MESSAGES ARE TRANSMITTED SIMULTANEOUSLY AND EACH IS REASSEMBLED AT THE RIGHT DESTINATION USING THE UNIQUE CODE THE OTHER TDMA ALSO BREAKS MESSAGES INTO SMALL BITS BUT TRANSMITS THEM IN DIFFERENT TIME SLOTS AND REASSEMBLES THEM AT THEIR DESTINATION UNLIKE CDMA WHICH PROBABLY WON'T ENTER THE MARKET FOR ABOUT TWO YEARS TDMA IS ALREADY BEING ESTABLISHED IN SOME LOS ANGELES NETWORKS MOTOROLA HAS INVESTED MORE HEAVILY IN CDMA WHILE WE'VE GOT TDMA AND ONE OF US IS GOING TO BE RIGHT MR TWYVER SAID HOWEVER MARTY SINGER A VICE PRESIDENT AT MOTOROLA'S CELLULAR OPERATIONS SAID THAT THOUGH THE COMPANIES DISAGREE ABOUT THE TIMING OF INTRODUCTION OF THE TECHNOLOGIES BOTH HAVE ACCESS TO TDMA AND CDMA THROUGH THE VENTURE MR SINGER NOTED THAT THE VENTURE HAS MET ITS REVENUE GOALS AND HAS BEEN PROFITABLE SINCE ITS INCEPTION BUT THE WITHDRAWAL OF THE SALES FORCES SUGGESTS THAT EACH PARTNER WANTS TO BE IN CONTROL OF ITS OWN DESTINY IN THE BURGEONING MARKET FOR WIRELESS COMMUNICATIONS MOTOROLA WITH 1992 SALES OF 133 BILLION IS A MAJOR PROVIDER OF WIRELESS COMMUNICATIONS SEMICONDUCTORS AND ADVANCED ELECTRONIC SYSTEMS AND SERVICES NORTHERN TELECOM A UNIT OF CANADA'S BCE INC MAKES SWITCHING EQUIPMENT AND HAD 1992 SALES OF 841 BILLION 9308020061 930802 SINGAPORE PLANS A TIGHTENING OF MARKET RULES PROCEDURAL CHANGES COME AFTER APPARENT EFFORTS TO MANIPULATE SHARES BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE THE SINGAPORE GOVERNMENT WILL TIGHTEN SOME STOCK MARKET PROCEDURES IN THE WAKE OF THREE RECENT APPARENT ATTEMPTS TO MANIPULATE SHARE PRICES BUT FINANCE MINISTER RICHARD HU SAID THERE ISN'T ANY NEED FOR A FULLBLOWN GOVERNMENT INQUIRY INTO THE INCIDENTS IN RESPONSE TO QUESTIONS DR HU TOLD PARLIAMENT THAT SINCE INVESTIGATIONS INTO THE INCIDENTS BY THE STOCK EXCHANGE OF SINGAPORE AND GOVERNMENT AGENCIES ARE ALREADY UNDER WAY THERE ISN'T ANY NEED FOR A SPECIAL GOVERNMENT INQUIRY DR HU ADDED THAT THE GOVERNMENT BELIEVES EXISTING PENALTIES ARE SUFFICIENT TO DETER PRICE MANIPULATION AND OTHER STOCK MARKET ABUSES HOWEVER HE SAID IF NECESSARY THE PENALTIES WILL BE INCREASED AND FURTHER MEASURES INTRODUCED TO PROTECT THE INTERESTS OF INVESTORS AN INDIVIDUAL CONVICTED OF MARKETRIGGING CAN BE FINED AS MUCH AS 50000 SINGAPORE DOLLARS US30900 AND JAILED FOR AS LONG AS SEVEN YEARS UNDER EXISTING LAW COMPLAINTS IN SINGAPORE'S SECURITIES INDUSTRY TEND TO BE ABOUT TOO MUCH REGULATION RATHER THAN NOT ENOUGH PRIVATELY SOME BANKERS AND BROKERS CLAIM THAT THE STOCK EXCHANGE AND THE MONETARY AUTHORITY OF SINGAPORE THE REPUBLIC'S DE FACTO CENTRAL BANK CRAMP INNOVATION WITH OVERLY STRICT RULES ON THE EVE OF A MAJOR GOVERNMENT PROMOTIONAL EFFORT TO ENCOURAGE SINGAPOREANS TO INVEST IN STOCKS DR HU TOLD THE LEGISLATURE THAT THE GOVERNMENT DOESN'T WANT TO MAKE ANY PROCEDURAL CHANGES THAT WOULD STIFLE GENUINE TRADING ACTIVITY TWO OF THE RECENT INCIDENTS INVOLVED INITIAL PUBLIC OFFERINGS BY KEPPEL BANK LTD A UNIT OF GOVERNMENTCONTROLLED KEPPEL CORP AND INTERNATIONAL FACTORS SINGAPORE LTD THE THIRD INCIDENT WAS AN APPARENT ATTEMPT TO MANIPULATE THE CONVERSION PRICE OF CONVERTIBLE PREFERRED SHARES ISSUED BY NEPTUNE ORIENT LINES LTD IN THE CASE OF THE KEPPEL BANK OFFERING AT THE END OF JUNE WHICH WAS DIVIDED INTO FIXEDPRICE AND TENDER OFFERINGS THE STRIKE PRICE FOR THE TENDER SHARES WAS INITIALLY SET AT S352 A SHARE THE STRIKE PRICE IS THE LOWEST PRICE ACCEPTED OR THE PRICE AT WHICH ALL STOCK IN THE TENDER OFFERING WILL BE TAKEN UP HOWEVER IN WHENISSUED TRADING BEFORE THE FORMAL LISTING OF THE STOCK THE PRICE OF KEPPEL BANK STOCK IMMEDIATELY DROPPED BELOW THE STRIKE PRICE THAT MEANT INVESTORS WHO HAD BID FOR TENDER SHARES AT S352 OR MORE COULD HAVE BOUGHT STOCK IN THE OPEN MARKET FOR LESS THAN THEY WERE GOING TO PAY IN THE OFFERING WHEN KEPPEL BANK BEGAN PROCESSING THE APPLICATIONS IT DISCOVERED THAT SOME INVESTORS DIDN'T HAVE ENOUGH MONEY IN THEIR CENTRAL PROVIDENT FUND ACCOUNTS TO PAY FOR THEIR SHARES DISQUALIFYING THEIR BIDS THE SUSPICION IS THAT SOME INVESTORS HAD TRANSFERRED MONEY OUT OF THEIR CPF ACCOUNTS TO AVOID HAVING TO TAKE UP THEIR KEPPEL BANK SHARES THE CPF IS A COMPULSORY GOVERNMENTRUN RETIREMENT FUND SINGAPOREANS CAN USE MONEY IN THEIR CPF ACCOUNTS TO BUY REAL ESTATE AND STOCKS AMONG OTHER THINGS UNDER CURRENT RULES INVESTORS SIMPLY PUT THEIR CPF ACCOUNT NUMBERS ON APPLICATIONS FOR SHARES IN INITIAL PUBLIC OFFERINGS THEY DON'T HAVE TO HAND OVER ANY CASH UNLESS THEIR BIDS ARE SUCCESSFUL IN THE INTERNATIONAL FACTORS OFFERING LAST MONTH UNIDENTIFIED INVESTORS SUBMITTED BOGUS BIDS WITH PHONY CPF ACCOUNT NUMBERS THESE BIDS AT HIGH PRICES PUSHED UP THE PROVISIONAL STRIKE PRICE THE INVESTORS PRESUMABLY INTENDED TO PROFIT BY SELLING STOCK SHORT IN WHENISSUED TRADING ON THE ASSUMPTION THAT AFTER THE PHONY APPLICATIONS WERE UNCOVERED THE FINAL STRIKE PRICE WOULD BE LOWERED ALLOWING THE SHORTSELLERS TO COVER THEIR POSITIONS BY BUYING STOCK AT A LOWER PRICE THE ATTEMPTED MANEUVER WAS DISCOVERED BEFORE WHENISSUED TRADING BEGAN THE GOVERNMENT HOWEVER IS APPARENTLY STUDYING TWO MEASURES IN RESPONSE TO THE INCIDENT WHILE DR HU DIDN'T OFFER DETAILS IN PARLIAMENT SINGAPORE NEWSPAPERS CITING UNIDENTIFIED SOURCES SAID THAT THE GOVERNMENT IS CONSIDERING FORCING INVESTORS TO CERTIFY THAT THEY HAVE ENOUGH CASH IN THEIR CPF ACCOUNTS TO COVER BIDS IN AN IPO AS WELL AS A MECHANISM TO FREEZE THE REQUIRED AMOUNT UNTIL AN IPO IS COMPLETED IN THE NEPTUNE ORIENT LINES CASE THE COMPANY'S COMMON OR ORDINARY SHARES DROPPED 50 SINGAPORE CENTS TO CLOSE AT S121 IN THE LAST MINUTES OF TRADING ON JULY 12 THE SUDDEN DROP MEANT THAT HOLDERS OF NEPTUNE ORIENT CONVERTIBLE PREFERRED STOCK COULD EXCHANGE THEIR PREFERRED SHARES FOR COMMON STOCK AT THE MINIMUM CONVERSION PRICE OF S122 A SHARE RATHER THAN THE MAXIMUM CONVERSION PRICE OF S155 THE CONVERSION PRICE OF THE PREFERRED STOCK IS DETERMINED BY THE CLOSING PRICE OF THE COMMON STOCK THE NEXT DAY HOLDERS OF 132 MILLION CONVERTIBLE PREFERRED SHARES SUBMITTED THEIR PREFERRED SHARES TO THE COMPANY FOR CONVERSION NEPTUNE ORIENT HAS SAID IT WILL HONOR THE CONVERSION REQUESTS BUT ONLY AFTER THE STOCK EXCHANGE AND GOVERNMENT FRAUD INVESTIGATORS DETERMINE WHETHER THE CLOSING PRICE OF THE COMPANY'S COMMON STOCK ON JULY 12 WAS THE RESULT OF A GENUINE TRADE DR HU TOLD PARLIAMENT THAT ISSUERS OF CONVERTIBLE PREFERRED STOCK COULD PREVENT SUCH INCIDENTS IF CONVERSION PRICES WERE BASED ON THE AVERAGE OF CLOSING PRICES OVER SEVERAL TRADING SESSIONS RATHER THAN A SINGLE CLOSING PRICE 9308020060 930802 INTERNATIONAL AT A QUIRKY STOCK MARKET IN SICHUAN GOVERNMENT SUPERVISES ILLEGAL TRADES BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG SICHUAN PROVINCE FORMER HOME TO SOME OF CHINA'S MOST ACTIVE ILLEGAL STOCK MARKETS HAS CRACKED DOWN ON CURBSIDE TRADING BUT ITS INTRODUCTION OF A SYSTEM THAT LEGALIZES TRADING OF UNAPPROVED STOCKS SUGGESTS THAT THE CLAMPDOWN REPRESENTS ONLY A SYMBOLIC GESTURE TO APPEASE CENTRAL GOVERNMENT OFFICIALS CHINA'S OFFICIAL XINHUA NEWS AGENCY REPORTED LAST WEEK THAT SICHUAN OFFICIALS HAD DISABLED THE BLACKMARKET EXCHANGE IN THE PROVINCIAL CAPITAL OF CHENGDU AS PART OF AN EFFORT TO STANDARDIZE TRADING IN ACCORDANCE WITH CENTRAL GOVERNMENT DIRECTIVES BUT INVESTORS CAN STILL TRADE STOCKS ISSUED ILLEGALLY BY 18 COMPANIES UNDER A CUSTODIAL SYSTEM SET UP BY THE SICHUAN AUTHORITIES TO REPLACE THE BLACK MARKETS LIKE OTHER PROVINCES BALKING AT BEIJING'S ATTEMPTS TO RECENTRALIZE CONTROL AS PART OF ITS ECONOMIC AUSTERITY PROGRAM SICHUAN'S CONFLICTING ACTIONS SHOW THAT IT'S SCRAMBLING TO ACCOMMODATE CENTRAL ORDERS WHILE PROTECTING ITS OWN INTERESTS THE BEIJINGFUNDED WEN WEI PO DAILY HAS REPORTED THAT CHINA'S VICE PREMIER ZHU RONGJI AS PART OF A 16POINT DIRECTIVE HAS ORDERED A CLEANUP OF THE WIDESPREAD PRACTICE OF RAISING CAPITAL OUTSIDE OF CENTRAL PLANNING THE ORDER IS APPARENTLY AIMED AT RETURNING SPECULATIVE FUNDS TO CHINA'S CASHPOOR BANKING SYSTEM AS A FIRST STEP THE STATE COMMISSION FOR RESTRUCTURING THE ECONOMIC SYSTEMS RECENTLY ISSUED TWO DIRECTIVES ORDERING PROVINCIAL GOVERNMENTS TO CRACK DOWN ON SHARE OFFERINGS THAT AREN'T APPROVED BY THE CENTRAL GOVERNMENT THE VALUE OF SUCH STOCKS WAS ESTIMATED BY THE PEOPLE'S BANK OF CHINA AT 30 BILLION YUAN 52 BILLION AT THE END OF LAST YEAR SAYS ONE SECURITIES OFFICIAL IN BEIJING CHINESE STATE TELEVISION REPORTED THAT THE COMMISSION WOULD FORCE COMPANIES TO REPURCHASE SHARES THAT THEY HAD ISSUED TO EMPLOYEES WITHOUT PROPER APPROVAL IT ALSO SAID THAT COMPANIES THAT ISSUED SUCH SHARES BEFORE AN APRIL GOVERNMENT CIRCULAR CALLING FOR A HALT TO UNAUTHORIZED STOCK ISSUANCES MIGHT GET APPROVAL TO TURN THOSE SHARES INTO CORPORATE BONDS AS PART OF ITS EXPERIMENT WITH SHAREHOLDING SYSTEMS THE CENTRAL GOVERNMENT SET UP OFFICIAL EXCHANGES IN SHANGHAI AND SHENZHEN MORE THAN TWO YEARS AGO IT ALSO HAS ALLOWED SOME STATE ENTERPRISES TO ISSUE SHARES OVERSEAS OR TO A RESTRICTED GROUP OF INVESTORS AT HOME BUT IN THE GOGO ATMOSPHERE FOLLOWING PARAMOUNT LEADER DENG XIAOPING'S TOUR OF SOUTHERN CHINA IN JANUARY 1992 COMPANIES HAVE RUSHED TO ISSUE SHARES AND LOCAL GOVERNMENTS HAVE APPROVED THEM WITHOUT THE CENTRAL GOVERNMENT'S GOAHEAD THIS DASH TO CASH IN ON CHINA'S STOCK CRAZE HAS SOAKED UP FUNDS NEEDED FOR INFRASTRUCTURE AND AGRICULTURAL DEVELOPMENTS A TREND MR ZHU IS TRYING TO CHANGE SICHUAN OFFICIALS SEEM TO HOPE HOWEVER THAT SIMPLY MOVING TRADING OFF THE STREETS AND INTO SECURITIES FIRMS WILL BE SUFFICIENT TO MEET BEIJING'S ORDERS UNDER ITS CUSTODIAL SYSTEM INVESTORS MUST PUT THEIR SHARES IN TRUST WITH SECURITIES FIRMS BUT THEY MAY STILL TRADE SHARES AS LONG AS THEY REGISTER THEIR TRANSACTIONS WITH THE BROKERAGE FIRMS CERTAINLY THE NUMBER OF SPECULATORS GATHERING AT CHENGDU'S ILLEGAL MARKET HAS FALLEN SHARPLY SINCE FEBRUARY AND MARCH WHEN AS MANY AS 50000 MET THERE EACH DAY IN ADDITION TO TRADING STOCKS ISSUED BY SICHUAN COMPANIES INVESTORS USED TO TRADE SHARES FROM AS FAR AWAY AS HAINAN GUIZHOU AND FUJIAN PROVINCES SOME PUNTERS EVEN TRADED PEDIGREE DOGS SELLING THEM TO THE NEWLY WEALTHY AND USING THE PROCEEDS TO INVEST IN STOCKS THESE DAYS THERE'S A SAYING THAT THE NUMBER OF INVESTORS COULD FIT INTO ONE OR TWO CARS SAYS ONE PROVINCIAL GOVERNMENT ECONOMIST ONE REASON IS THAT PRICES OF SICHUAN STOCKS HAVE PLUMMETED IN LINE WITH THOSE ON CHINA'S TWO OFFICIAL EXCHANGES AS COMPANIES PLAYING THE MARKETS HAVE BEEN FORCED TO LIQUIDATE HOLDINGS TO RAISE CASH IN THE FACE OF THE CURRENT CREDIT SQUEEZE BUT ANOTHER REASON SICHUAN OFFICIALS ARGUE IS THE GOVERNMENT'S REGULATION OF STOCK TRADING 9308020059 930802 INTERNATIONAL US IS PREPARED FOR AIR STRIKES AGAINST SERBS NATO WILL MEET TODAY MOVE IS SAID POSSIBLE IN A MATTER OF DAYS' BY THOMAS E RICKS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE US HAS TOLD ITS EUROPEAN ALLIES THAT IF NECESSARY IT IS PREPARED TO LAUNCH AIR STRIKES ON ITS OWN TO BREAK THE SIEGE OF SARAJEVO THE US IS DETERMINED TO ACT BUT BASED ON THE CONVERSATIONS WE'VE HAD WE CERTAINLY FEEL THAT IT'S POSSIBLE WE WILL ACT WITHIN THE NATO FRAMEWORK STATE DEPARTMENT SPOKESMAN MIKE MCCURRY TOLD REPORTERS TRAVELING WITH SECRETARY OF STATE WARREN CHRISTOPHER TO THE MIDDLE EAST THE AIR STRIKES WOULD BE POSSIBLE WITHIN A MATTER OF DAYS ACCORDING TO MR MCCURRY WHO SAID THE US WAS STILL HOPING THAT A CREDIBLE THREAT OF FORCE WOULD PERSUADE THE SERBS TO CEASE THEIR AGGRESSION THE US AND ITS NATO ALLIES WILL MEET TODAY IN BRUSSELS TO CONSIDER A US PROPOSAL TO USE LIMITED AIR STRIKES TO BREAK THE SIEGE OF THE BOSNIAN CAPITAL AND TO PRESSURE THE SERBS TO NEGOTIATE IN GOOD FAITH IN BOSNIAN PEACE TALKS AMERICA'S CLOSEST ALLIES BRITAIN AND FRANCE ALREADY HAVE AGREED IN PRINCIPLE TO THE BASIC US IDEA THAT MORE MILITARY ACTION IS NEEDED BUT NATO MEMBERS STILL HAVE TO AGREE ON KEY DETAILS SUCH AS TARGETING COMMAND AND CONTROL AND WHAT TRIGGER POINTS COULD SET OFF AN ATTACK A US DOCUMENT CIRCULATED TO THE ALLIES BEFORE TODAY'S MEETING SAYS THE GOAL OF THE PROPOSED STRIKES WOULD BE TO PUT AIR POWER AT THE SERVICE OF DIPLOMACY ACCORDING TO PEOPLE WHO HAVE SEEN THE PAPER BOSNIA'S MUSLIMS SERBS AND CROATS AGREED TENTATIVELY FRIDAY ON A PLAN TO PARTITION BOSNIA BUT THERE HAS BEEN NO AGREEMENT ON A MAP FOR THE DIVISION AND THE FIGHTING HASN'T STOPPED AT THE MEETING THE US ALSO IS LIKELY TO PRESS FOR THE IMPOSITION OF ECONOMIC SANCTIONS AGAINST CROATIA WHICH HAS SENT TROOPS TO FIGHT ALONGSIDE BOSNIAN CROATS THE AIR STRIKES PROPOSED BY THE US WOULD BE LIMITED AS TO THEIR TARGETS BUT BROADLY DISPERSED GEOGRAPHICALLY THIS IS A TACTICAL OPERATION NOT A STRATEGIC ONE THE DEFENSE DEPARTMENT OFFICIAL SAID MEANING THAT THE TARGETS WOULD BE ARTILLERY EMPLACEMENTS AND OTHER FRONTLINE MILITARY ACTIVITIES RATHER THAN COMMANDANDCONTROL CENTERS BRIDGES AND TARGETS AWAY FROM THE BATTLEFIELD THE FOCUS IS ON SARAJEVO HE SAID BUT TO MAKE SURE THAT SUPPLIES GET THROUGH AND UN FORCES AREN'T ATTACKED WE'D ACT ACROSS THE BOARD ACCORDING TO THE US DIPLOMATIC PAPER THE STRIKES WOULD AIM TO INFLUENCE THE PEACE TALKS CLEAR THE WAY FOR FOOD AND MEDICAL SUPPLIES TO REACH BOSNIA'S BESIEGED MUSLIMS AND DETER FURTHER ATTACKS ON UNITED NATIONS PEACEKEEPING FORCES BUT THE STRIKES THEMSELVES WOULDN'T BE INTENDED TO ALTER THE MILITARY OUTCOME THE PENTAGON APPEARS TO HAVE SIGNED ON TO THE PLAN BECAUSE THE JOINT CHIEFS OF STAFF ARE COMFORTABLE WITH THE IDEA OF STRIKES FOR A CLEAR AND LIMITED PURPOSE INDEED WITH THE SMALL SCALE OF THE CONTEMPLATED MILITARY ACTIONS US MILITARY LEADERS DON'T SEEM TO FEAR BEING PULLED DEEPER INTO THE CONFLICT BY SEEING US PILOTS TAKEN PRISONER INTERNAL PENTAGON ESTIMATES PREDICT THAT THE PILOT LOSS RATE FOR THE RAIDS BEING CONTEMPLATED WOULDN'T BE MUCH HIGHER THAN IN A REALISTIC TRAINING ENVIRONMENT SERB FORCES POSSESS SA7 AND SA14 SHOULDERFIRED SURFACETOAIR MISSILES AS WELL AS SOME ANTIAIRCRAFT ARTILLERY BUT THE MILITARY THINKS ITS TACTICS CAN SHARPLY LIMIT THE EFFECTIVENESS OF THOSE WEAPONS IN ADDITION THE LIMITED SCOPE OF THE STRIKES SHOULD APPEAL TO THE US PUBLIC WHICH IN POLLS HAS CONSISTENTLY SAID IT DOESN'T WANT TO SEE THE US BOGGED DOWN IN FIGHTING IN THE FORMER YUGOSLAVIA SENATE REPUBLICAN LEADER BOB DOLE OF KANSAS IN AN OPINION PIECE IN YESTERDAY'S WASHINGTON POST ENDORSED UNDER CERTAIN CONDITIONS THE IDEA OF CARRYING OUT AIR STRIKES THE STRIKES ALSO WOULD SEND A STRONG SIGNAL ABOUT THE FUTURE US PEACEKEEPING ROLE IN THE FORMER YUGOSLAVIA PRESIDENT CLINTON HAS PLEDGED TO SEND AMERICAN PEACEKEEPERS TO BOSNIA IF ALL SIDES AGREE TO A DIPLOMATIC SETTLEMENT AIR STRIKES NOW COULD SEND THE SERBS A MESSAGE THAT WE MEAN IT WHEN WE SAY HANDS OFF US TROOPS SAID AN AMERICAN OFFICIAL BUT ANY MILITARY OR DIPLOMATIC ACTIONS AGAINST THE SERBS AND CROATS MUST BE CAREFULLY CALIBRATED DIPLOMATS SAY THERE MUST BE ENOUGH PRESSURE TO MAKE THOSE PARTIES SIGN A PEACE ACCORD AND ABIDE BY IT BUT NOT SO MUCH THAT THE BOSNIAN MUSLIMS ARE INSPIRED TO HOLD OUT THERE CAN'T BE SO MUCH PRESSURE THAT THE MUSLIMS THINK THE CAVALRY IS COMING OVER THE HILL ONE EUROPEAN DIPLOMAT SAID 9308020058 930802 LETTERS TO THE EDITOR ARROGANCE OF POWER ENGENDERS CORRUPTION ALBERT HUNT'S ATTACK ON PROSECUTORS WHO HAVE FOUGHT HARD FOR TWO YEARS TO EXPOSE 15 YEARS OF CORRUPTION AT THE HOUSE POST OFFICE IS MISGUIDED REAL DANGER IN ROSTY AFFAIR IS PROSECUTOR ABUSE EDITORIAL PAGE JULY 28 IN THE FACE OF DOCUMENTED PUBLIC EVIDENCE OF EFFORTS TO COVER UP THIS SCANDAL AND ATTACKS ON THE PROSECUTION BY CONGRESSMEN WHO PUBLICLY TOOK THE FIFTH RATHER THAN COOPERATE WITH THE INVESTIGATION MR HUNT MISTAKENLY CRITICIZES THE MESSENGER RATHER THAN CONDEMNING THE FUNDAMENTAL PROBLEM THE RECORD IS CLEAR MY COMMENTS FOLLOWING THE GUILTY PLEA BY FORMER HOUSE POSTMASTER ROBERT ROTA WERE BASED ON THE PUBLIC RECORD MR ROTA ADMITTED IN COURT HIS ROLE IN CRIMINAL TRANSACTIONS WITH TWO INDIVIDUALS HE IDENTIFIED AS MEMBERS OF CONGRESS THE FACTS SUPPORTING THAT ILLEGAL CONDUCT WERE SET OUT IN COURT DOCUMENTS IN DETAIL MY COMMENT THAT IT SHOULD BE ONLY A MATTER OF TIME UNTIL PROSECUTORS MAKE DECISIONS REGARDING THE CULPABILITY OF THE OTHER PARTIES TO THOSE TRANSACTIONS WAS A LOGICAL CONCLUSION APPARENT TO ANYONE WHO READ THOSE EXTENSIVE COURT DOCUMENTS SECOND MY COMMENTS REGARDING THE AMOUNTS OF MONEY POTENTIALLY INVOLVED IN A NUMBER OF ALLEGATIONS OF CORRUPTION LIKEWISE WERE NOT BASED ON ANY INSIDE INVESTIGATIVE INFORMATION THEY WERE BASED ON A NUMBER OF PUBLIC ANALYSES THAT HAVE BEEN DONE OVER THE PAST YEAR BY SEVERAL MEDIA ORGANIZATIONS AND CONTRARY TO MR HUNT'S INTIMATION NEITHER I NOR DO I BELIEVE ANY OTHER PROSECUTORS PROVIDED THAT INFORMATION TO THE MEDIA IN FACT IT WAS AGGRESSIVE INVESTIGATIVE REPORTING THAT INITIALLY SURFACED SEVERAL ALLEGATIONS AND SHED LIGHT ON THE POSSIBLE MAGNITUDE OF THE ALLEGED MISCONDUCT THOSE PUBLISHED REPORTS HAVE BEEN AVAILABLE FOR ALL TO ASSESS THIRD AS I HAVE STATED PUBLICLY AND TO MR HUNT I HAVE CONSISTENTLY TAKEN THE POSITION THAT THE INTEGRITY OF THE CRIMINAL INVESTIGATION IS OF PARAMOUNT IMPORTANCE AS FOR PUBLIC RELEASE OF CONGRESSIONAL DOCUMENTS I BELIEVE THAT IS A MATTER BEST DECIDED THROUGH CONSULTATION BETWEEN HOUSE MEMBERS AND THE PROSECUTORS WHO ARE FAMILIAR WITH THE CURRENT STATUS OF THIS INVESTIGATION FINALLY MR HUNT'S CLAIM ABOUT DISCLOSURE OF ALLEGED SUBPOENAS AND OTHER INVESTIGATIVE EVIDENCE BY PROSECUTORS IS SIMPLY FALSE HIS INTIMATION THAT I HAD SOME INVOLVEMENT IN POSSIBLE DISCLOSURE OF ALLEGED JUNE GRAND JURY TESTIMONY OF MR ROSTENKOWSKI'S SISTERS IS ABSURD SINCE I HAD LEFT THE US ATTORNEY'S OFFICE TWO MONTHS EARLIER GIVEN MR HUNT'S LONGTERM RELATIONSHIP WITH MR ROSTENKOWSKI HIS PERSONAL SENSITIVITY TO THIS ISSUE IS UNDERSTANDABLE BUT INSTEAD OF TAKING A SHOT AT THE MESSENGER HE COULD MORE PRODUCTIVELY TAKE AIM AT THE PATRONAGE SYSTEM AND ARROGANCE OF POWER THAT GAVE US NEARLY 15 YEARS OF CORRUPTION AT THE HOUSE POST OFFICE 9308020057 930802 LETTERS TO THE EDITOR WE'RE MUCH BETTER OFF DEFERRING NUCLEAR TEST FORMER ENERGY SECRETARY JAMES SCHLESINGER'S JULY 12 EDITORIAL PAGE ARTICLE CLINTON DEFERS A NECESSITY NUCLEAR TESTING ON THE AMERICAN NUCLEAR TEST MORATORIUM MISSTATES THE TEST PROGRAM PROPOSED BY OUR BRITISH ALLIES EXAGGERATES THE RISKS OF OUR RESTRAINT IN TESTING NUCLEAR WEAPONS AND IGNORES THE COUNSEL OF MANY PROFESSIONAL WEAPONS DESIGNERS THE BRITISH MINISTRY OF DEFENSE WANTED TO TEST ITS WARHEAD FOR THE TRIDENT MISSILE BUT ABANDONED THAT PLAN SOME MONTHS AGO INSTEAD IT CHOSE TO TEST A NEW AIRDROPPED BOMB AND IS NOW SATISFIED WITH ITS TRIDENT WARHEAD THE BRITISH FOREIGN MINISTRY RECOGNIZED THAT THE NONPROLIFERATION ADVANTAGES OF A TEST BAN OUTWEIGHED THE BENEFITS OF TWO OR THREE TESTS THE SAFETY CONCERNS ABOUT THE W88 WARHEAD ON THE AMERICAN TRIDENT MISSILE ARE MINOR AND CAN BE RESOLVED WITHOUT TESTING ESPECIALLY IF WARHEADS ARE REMOVED FROM THE ROCKET TO COMPLY WITH THE START 2 TREATY IF WE ARE EVER IN A SITUATION WHERE THE LACK OF INSENSITIVE HIGH EXPLOSIVE IN THE W88 MATTERS WHERE THE WARHEAD COULD BE BURNED IN AN ATTACK OR STRUCK BY ENEMY BULLETS WE WILL HAVE FAR MORE SERIOUS PROBLEMS ON OUR HANDS SECRETARY SCHLESINGER'S ANALOGY OF NUCLEAR TESTING TO FIRING UP THE FAMILY LAWNMOWER IS DISINGENUOUS NUCLEAR WEAPONS ARE NOT LAWNMOWERS AND DO NOT FAIL THE SAME WAYS ONE NEED NOT EXPLODE A NUCLEAR WEAPON TO VERIFY ITS FUNCTIONING IN ANY EVENT NUCLEAR RELIABILITY IS MORE THAN ADEQUATE FOR WEAPONS INTENDED PRIMARILY TO DETER OTHER NATIONS RATHER THAN FOR PINPOINTING TACTICAL USE ADDITIONALLY TOP AMERICAN NUCLEAR DESIGNERS ARE CONVINCED THAT A NEW GENERATION OF VERY RELIABLE WEAPONS COULD BE BUILT USING ONLY URANIUM235 WHICH CAN BE RECOVERED FROM WEAPONS BEING RETIRED FROM THE STOCKPILE PRESIDENT CLINTON TOOK A COURAGEOUS STEP IN CONTINUING THE MORATORIUM AND REASSERTING AMERICAN NUCLEAR LEADERSHIP A POSITION THIS NATION ABANDONED WITH THE ELECTION OF RONALD REAGAN THE MORATORIUM IS RIGHT FOR NOW A TEST BAN WILL BE THE PROPER NEXT STEP MR ZIMMERMAN A NUCLEAR PHYSICIST RECENTLY COMPLETED A STUDY OF IRAQ'S NUCLEAR WEAPONS PROGRAM FOR CONGRESS 9308020056 930802 LEISURE & ARTS TELEVISION BLONDES AND CONS WINDOW ON FILM NOIR BY ROBERT GOLDBERG I STOOD IN THAT PHONE BOOTH MY HAND SWEATING ON THE RECEIVER AS THE FAN CREAKED AND WHEEZED OVERHEAD I HAD A HUNCH IT MIGHT COME TO THIS THE DOUBLE CROSS SHE WAS A HOT NUMBER ALL RIGHT TOO HOT FOR ME HER EYES SAID LOVE BUT HER HEART HER HEART SAID MURDER AND YET I JUST COULDN'T WALK AWAY IRRESISTIBLE THAT'S THE HARDBOILED WORLD OF FILM NOIR A WORLD IN WHICH THE LIQUOR IS CHEAP AND THE DAMES ARE TREACHEROUS OR MAYBE IT'S THE OTHER WAY AROUND IN THIS BLEAK CORRUPTED LAND EVERYONE SEEMS DOOMED AND THE SHADOWS ON THE WALL MATCH THE SHADOWS IN THE SOULS OF SEDUCERS AND SCAM ARTISTS GRIFTERS BLACKMAILERS AND MURDERERS NOW LIKE A ONEWAY TICKET TO THE SEEDY SIDE OF TOWN SYDNEY POLLACK PRESENTS A SIXPART ANTHOLOGY SERIES FALLEN ANGELS SHOWTIME TUESDAY 111130 PM EDT AND SUNDAYS AUG 15SEPT 26 10 OR 11 PM CHECK LOCAL LISTINGS RESUSCITATING A GRAND OLD GENRE ONCE AGAIN SEAMY 1940S LOS ANGELES COMES TO LIFE THE CITY OF CHANDLER AND THOMPSON BOGART AND MITCHUM THE BIG SLEEP AND THE LONG GOODBYE ONLY THIS TIME IT'S BLACKANDWHITE IN COLOR AS EXECUTIVE PRODUCER MR POLLACK HAS PULLED TOGETHER AN OFFBEAT GROUP OF TODAY'S FILM ALLSTARS TO ADAPT SIX NOIR SHORT STORIES ACTORS SUCH AS JAMES WOODS LAURA DERN JOE MANTEGNA AND ALAN RICKMAN WRITERS SUCH AS JON ROBIN BAITZ SCOTT FRANK AND AMANDA SILVER DIRECTORS SUCH AS TOM HANKS TOM CRUISE IN HIS DEBUT PHIL JOANOU AND STEVEN SODERBERGH FILM NOIR IS IN ITS WAY A FORM AS RIGIDLY STYLIZED AS THE ELIZABETHAN SONNET AND THE FINE POINTS ARE ALL OBSERVED IN FALLEN ANGELS THE SMOKY ROOMS DARK ALLEYWAYS HALFBURNED CIGARETTES DANGLING FROM THE BOTTOM LIP BUSTY BLONDES LEGGY REDHEADS SHOTGLASSES OF BOOZE THE SAXOPHONE MOANING AT 4 AM ALL THE MEN WEAR HATS ALL THE WOMEN WEAR DRESSES SLIT TO THEIR NAVELS AND EVERYONE SEEMS TO HAVE A PERMANENT HANGOVER THE CHALLENGE OF THIS KIND OF HOMAGE IS TO PLAY BY THE OLD RULES 50 YEARS LATER BUT AVOID FALLING INTO PARODY AND EVEN IF POSSIBLE TRANSCEND THE ORIGINAL SOMETIMES FALLEN ANGELS SOUNDS LIKE A LOWRENT KNOCKOFF LIKE 2 PEARLS SHE WAS THE MOST BEAUTIFUL THING ALIVE BUT SHE WAS A TRAMP THE AIR WAS SO THICK WITH CHEAP PERFUME YOU COULD CUT IT WITH A KNIFE YOU GOT THAT LOOK IN YOUR EYE I SEEN IT BEFORE SOMEBODY'S LIABLE TO TURN UP DEAD BUT MORE OFTEN FALLEN ANGELS PLAYS LIKE BOLD INTELLIGENT PROGRAMMING ESPECIALLY WHEN STACKED UP AGAINST THE DREGS OF SUMMER THESE VIGNETTES ARE PRODUCED WITH IMPECCABLE POLISH AND AT A HALFHOUR EACH THEY ARE FOR THE MOST PART SHORT BLUNT AND POWERFUL LIKE THE BUSINESS END OF A SNUBNOSED PISTOL DEAD END FOR DELIA OPENS THE SERIES IT'S THE STORY OF A FEMME FATALE GABRIELLE ANWAR WHO HAS AN UNFORTUNATE RUNIN WITH A CROWBAR HER EXHUSBAND A DETECTIVE GARY OLDMAN SETS OUT THROUGH A MAZE OF GIN JOINTS AND BACK ALLEYS TO TRACK DOWN THE FACTS SURROUNDING HER DEATH AS DIRECTED BY MR JOANOU DEAD END HAS AN IMPRESSIVE MOTIONPICTURE VENEER WITH MOODY LIGHTING AND ARTSY CAMERA MOVES BUT SLICK AS IT IS THE PIECE FEELS AS STIFF AND COLD AS POOR OLD DELIA MR HANKS'S DIRECTION ON I'LL BE WAITING IS THE REVERSE HIS CAMERA WORK IS FUNCTIONAL STATIC CLOSEUP TWOSHOT CLOSEUP TWOSHOT BUT HIS FEELING FOR HIS CHARACTERS PUTS EMOTIONAL HEAT INTO THIS STORY OF A HOTEL DETECTIVE BRUNO KIRBY A KEYHOLE PEEPER TRYING TO HELP A BEAUTIFUL SAD WOMAN WHO MAY BE IN TROUBLE WITH THE MOB MARG HELGENBERGER YOU GOT THE EYE ON ME SHE INTONES HUSKILY EVERYONE ELSE HAS THE EYE ON A MISSING 25 LARGE WHEN THE BULLETS FLY THE NOBLE HOTEL DICK WILL DO HIS JOB AND THEN SOME MR SODERBERGH'S THE QUIET ROOM IS THE BLEAKEST OF THE SIX TALES A TRULY BLACK STORY OF A SHAKEDOWN SCAM THAT SEEMS DOOMED TO GO TERRIBLY WRONG VETERANS BONNIE BEDELIA AND MR MANTEGNA TURN IN POWERFUL PERFORMANCES HERE AS TWO COPS WHO HAVE BEEN INFECTED BY THE SLEAZY WORLD THEY PATROL OVER THE COMING WEEKS FALLEN ANGELS GETS STRONGER AND STRONGER SERIES HIGHLIGHTS INCLUDE THE ACTING OF MR WOODS AS A WONDERFULLY CRUDE YIDDISHSPOUTING GANGSTER GARY BUSEY AS A JADED EXCOP AND ISABELLA ROSSELLINI AS A SLIGHTLY TWISTED CON WOMAN OVERALL MY FAVORITE TALES ARE MS SILVER'S SENSITIVE ADAPTATION OF MURDER OBLIQUELY AND MR CRUISE'S THE FRIGHTENING FRAMMIS MS SILVER UPENDS THE MISOGYNISTIC NOIR WORLDVIEW BY FOCUSING ON THE STORY OF A GOOD GIRL MS DERN WHO FALLS FOR THE WRONG MAN MR RICKMAN FRAMMIS IS THE ENTERTAINING STORY OF A CON MAN PETER GALLAGHER WHO KEEPS GETTING OUTCONNED BOOTED OFF A GAMBLERS' TRAIN WITH TWO POCKETS FULL OF NOTHING HE MEETS A WOMAN NAMED BABE THE NAME SHOULD HAVE WARNED HIM RIGHT AWAY AND WHILE HE THINKS THINGS ARE LOOKING UP THEY'RE REALLY HEADING DOWNHILL FAST ONLY LATER WILL HE REALIZE SHE WAS 110 POUNDS OF PURE RAT POISON I DIDN'T WANT TO BE THE RAT AS A SERIES THE FUN OF FALLEN ANGELS IS THE WINDOW IT OFFERS ON AN EARLIER TIME DESPITE THE COLOR THIS IS A BLACKANDWHITE WORLD AN ANACHRONISTIC WORLD OF SCHEMERS AND TWOBIT HUSTLERS TRYING TO SCRAPE BY ON SAD CITY STREETS WHERE FAITH AND LOVE AND MONEY ARE ALL IN SHORT SUPPLY WHERE SEX IS CASUAL AND VIOLENCE MORE CASUAL STILL THEN AGAIN MAYBE IT'S NOT SO ANACHRONISTIC AFTER ALL I TURNED OFF THE TV AND GULPED DOWN MY DRINK IT BURNED LIKE CRAZY LOUSY WHISKEY WITH THREE STRIDES I WAS ACROSS THE ROOM PULLING HER TO HER FEET HER ARMS WENT AROUND MY NECK THERE'D BE TROUBLE AHEAD I KNEW LOTS OF TROUBLE BUT THAT WAS TOMORROW 9308020054 930802 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ACTEL CORP INITIAL 41 MILLION SHARES VIA GOLDMAN SACHS & CO AMVESTORS FINANCIAL CORP FOUR MILLION SHARES VIA SALOMON BROTHERS INC ARBOR HEALTH CARE CO INITIAL 1550000 MILLION SHARES VIA ROBERTSON STEPHENS & CO ARETHUSA OFFSHORE LTD INITIAL 66 MILLION SHARES VIA SALOMON BROTHERS CROWN AMERICA REALTY TRUST INITIAL 21 MILLION SHARES VIA PAINEWEBBER INC DAVCO RESTAURANTS INC INITIAL 26 MILLION SHARES VIA FIRST BOSTON CORP DIAMETRICS MEDICAL INC INITIAL TWO MILLION SHARES VIA HAMBRECHT & QUIST INC DUAL DRILLING INITIAL 6250000 MILLION SHARES VIA MERRILL LYNCH INC EQUITY RESIDENTIAL PROPERTIES TRUST INITIAL 109 MILLION SHARES OF BENEFICIAL INTEREST VIA MERRILL LYNCH EXCEL REALTY TRUST INC INITIAL 5250000 MILLION SHARES OF BENEFICIAL INTEREST VIA MERRILL LYNCH GMIS INC 11 MILLION SHARES VIA FIRST BOSTON CORP IMAGE INDUSTRIES INC 3250000 MILLION SHARES VIA LEHMAN BROTHERS JACK ECKERD CORP INITIAL 45 MILLION SHARES VIA MERRILL LYNCH KURZWEIL APPLIED INTELLIGENCE INC INITIAL 21 MILLION SHARES VIA ROBERTSON STEPHENS ILLINOIS 175 MILLION VARIOUSPURPOSE GENERAL OBLIGATION BONDS AUGUST 1993 SERIES VIA COMPETITIVE BID NEW YORK 11 BILLION VARIOUS REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID CHARLOTTE NC 143 MILLION CONVENTION CENTER REVENUE BONDS VIA A PAINEWEBBER GROUP NEW YORK CITY HOUSING DEVELOPMENT CORP 132 MILLION REVENUE BONDS VIA A BEAR STEARNS & CO GROUP NEW YORK STATE DORMITORY AUTHORITY 569 MILLION STATE UNIVERSITY EDUCATION FACILITIES REVENUE REFUNDING BONDS SERIES 1993B VIA A MERRILL LYNCH GROUP PENNSYLVANIA HOUSING FINANCE AGENCY 207 MILLION RENTAL HOUSING REFUNDING BONDS VIA AN ALEX BROWN & SONS INC GROUP PHILADELPHIA 12 BILLION WATER AND WASTEWATER REVENUE BONDS 1993 SERIES VIA A SMITH BARNEY HARRIS UPHAM & CO INC GROUP PLEASANTON JOINT POWER FINANCE AUTHORITY CALIF 250 MILLION REASSESSMENT REVENUE BONDS AND SUBORDINATE REASSESSMENT REVENUE BONDS VIA A PAINEWEBBER GROUP SACRAMENTO MUNICIPAL UTILITY DISTRICT CALIF 188 MILLION TAXABLE REVENUE REFUNDING BONDS 1993 SERIES F VIA A GOLDMAN SACHS GROUP TAMPA FLA 100 MILLION SOLIDWASTE REFUNDING BONDS VIA A SMITH BARNEY GROUP 9308020053 930802 PARTY ANIMALS IN CAPITALIST MOSCOW YOUNG BUSINESS GRADS REAP MONEY AND ENVY SOME CAST ASIDE SCRUPLES IN A MAD DASH TO CASH IN ON FREEMARKET REFORM MASTERS OF RUSSIAN UNIVERSE BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THEY HAVE JUST GRADUATED FROM PRESTIGIOUS MOSCOW STATE UNIVERSITY AND THE TWO DOZEN ECONOMICS MAJORS ARE ON A BINGE THEY WASH DOWN EXPENSIVE CAVIAR WITH CHAMPAGNE CHUG VODKA SING BAWDY SONGS FOR THESE FRESHFACED GRADUATES IN THEIR WELLCUT SUITS THERE IS PLENTY TO CELEBRATE MOST ALREADY HOLD FULLTIME JOBS AT THRIVING COMPANIES EARNING MORE IN A YEAR THAN THEIR PARENTS HAVE OVER A LIFETIME THERE IS SERGEI BAKUNIN HEAD OF THE SECURITIES DEPARTMENT OF A LARGE RUSSIAN BANK SLAVA SHIKULOV WHO EARNED 130000 SELLING IMPORTED LUXURY ITEMS LAST YEAR AND VYACHESLAV KOLOSKOV SALES MANAGER FOR ONE OF MOSCOW'S BIGGEST TRADING COMPANIES COLLEGE DIDN'T REALLY TEACH US ANYTHING OF MUCH VALUE SAYS ANDREI MURAVYOV ANOTHER OF THE CELEBRANTS BUT WE MADE UNBELIEVABLE CONNECTIONS THIS IS THE CLASS OF '93 THE RUSSIAN EQUIVALENT OF THE WALL STREET WHIZ KIDS OF THE 1980S AND WOULDBE MASTERS OF THE RUSSIAN UNIVERSE THEY ARE BUNDLING THEIR COLLEGE CONTACTS BOUNDLESS CONFIDENCE GOOD LOOKS AND GREAT ENERGY INTO OPPORTUNITIES UNTHINKABLE IN RUSSIAN SOCIETY JUST A FEW YEARS AGO UNBURDENED BY THE OLD IDEOLOGY THEY HAVE FAST ADAPTED TO THE NEW MASTERING NOVEL FINANCIAL INSTRUMENTS AND FORGING SCHEMES FOR GETTING RICH QUICK IN THE FRONTIER OF RUSSIAN CAPITALISM THEY SEE THEMSELVES AS A CLASS APART AND DESTINED ONE DAY TO DOMINATE MOSCOW'S ECONOMIC LIFE THESE PEOPLE ARE OUR' PEOPLE SAYS MR SHIKULOV AND IN A DECADE WE'LL BE THE HEADS OF BANKS AND BIG COMPANIES AND HIGH UP IN GOVERNMENT IT WILL BE EASIER FOR US ALL TO DO BUSINESS MANY OLDER RUSSIANS ON THE OTHER HAND ARE FINDING THE ASCENDANCE OF THESE AGGRESSIVE MONEYED YOUNG MEN HARD TO TAKE AS THEY CHARGE ABOUT THE CHANGING SOCIAL LANDSCAPE WIDENING THE DIVISIONS BETWEEN RICH AND POOR THINGS HAVE COME VERY EASY FOR THESE KIDS PERHAPS TOO EASY SAYS YURI OREVKOV WHO TEACHES MATHEMATICS AT MOSCOW STATE THE WORLD IS AT THEIR FEET EVEN THE GRADUATES WORRY THAT THIS GAP BETWEEN HAVES AND HAVENOTS MAY BE MORE THAN RUSSIAN SOCIETY CAN HANDLE AND THAT THE HARDWON ECONOMIC REFORMS OF LATE MAY BE REVERSED BY A BACKLASH BUT FOR NOW AT LEAST THE PARTY CONTINUES WHEN THE GRADUATIONNIGHT BANQUET BREAKS UP THE GROUP PILES INTO SEVERAL CARS AND TEARS AROUND CAMPUS THEY STOP AT THE TALL STATUES HONORING TOP SOVIET SCIENTISTS AND BOW REVERENTLY TO EACH ONE THEN THEY PARTY THROUGH THE NIGHT AT DAYBREAK THEY GO TO WORK TO JOBS MOST HAVE HELD FOR AT LEAST A YEAR DMITRI ZOTOV IS BACK AT THE OFFICE RUNNING THE HARDCURRENCY CREDIT DEPARTMENT AT NEFTEKHIMBANK THE SQUAREJAWED 24YEAROLD JOINED THE BANK THREE MONTHS AGO AFTER WORKING FOR TWO YEARS WITH A BIG MOSCOW INVESTMENT COMPANY WHEN MR ZOTOV AND HIS COLLEAGUES CAME TO MOSCOW STATE THE SOVIET UNION WAS STILL INTACT THE STUDY OF ECONOMICS WAS A MORIBUND EXERCISE VALUED LARGELY BECAUSE IT PROVIDED A PATH TO COMMUNIST PARTY LEADERSHIP IT FOCUSED NEARLY EXCLUSIVELY ON MARXIST TEXTS THE FREEWHEELING CAPITALISM NOW EMERGING IN RUSSIA SEEMED UNTHINKABLE THESE DAYS MOSCOW STATE'S ECONOMICS DEPARTMENT IS FLOODED WITH APPLICANTS CLAMORING TO GET OUT OF THE SCIENCES AND INTO RUSSIA'S EQUIVALENT OF AN MBA PROGRAM IT ACCEPTED ABOUT 60 SUCH TRANSFERS LAST YEAR WHEN I ENTERED SCHOOL MY GOAL WAS TO JOIN THE COMMUNIST PARTY ELITE AND I FIGURED I'D NEED ECONOMICS FOR THAT SAYS MR ZOTOV HE HAD SEEN HIS FATHER A PROMINENT PHYSICIST SENT TO THE FIELDS AT HARVEST TIME TO DIG POTATOES THEY NEVER ASKED THE PARTY ELITE TO DO THAT HE SAYS TODAY THE PARTY NOMENKLATURA IS GONE BUT MR ZOTOV IS STILL OBSESSED WITH POWER A DAY EARLIER HE DREW UP THREE LOAN AGREEMENTS TOTALING 10 MILLION FORWARDING THEM TO THE BANK'S TOP OFFICIALS FOR APPROVAL THE GUYS AT THE TOP MAKE THE DECISIONS BECAUSE THEY HAVE MORE INFORMATION HE SAYS THAT'S MY BIGGEST ASPIRATION TO HAVE ACCESS TO THAT INFORMATION WITHIN 10 YEARS HE PREDICTS WITH QUIET CONFIDENCE I'LL BE ON THE BOARD MR ZOTOV HAS A PET THEORY AS TO WHY YOUNG PEOPLE ARE IN SUCH HIGH PROFESSIONAL DEMAND OLDER PEOPLE HAVE AN ETHICS PROBLEM HE SAYS BY THAT I MEAN THEY HAVE ETHICS TO SURVIVE I CAN BREAK A LAW IF I NEED TO AND IF THE RISKS AREN'T TOO LARGE OLDER PEOPLE WOULDN'T EVEN THINK IN SUCH A WAY INDEED THE RANKS OF NEW GRADUATES ARE BEING SNAPPED UP SO QUICKLY THAT MR ZOTOV IS HAVING TROUBLE HIRING ASSISTANTS FOR HIS DEPARTMENT CONTRAST THAT WITH THE US WHERE GRADUATES ARE TIPTOEING INTO A SORRY JOB MARKET AT THIS STAGE THERE ARE ONLY GIRLS LEFT MR ZOTOV COMPLAINS HE DEEMS WOMEN WORKERS UNRELIABLE BECAUSE THEY JUST HAVE KIDS AND STUFF BUT IF THE MEN ARE LEAVING THE WOMEN BEHIND SLAVA SHIKULOV IS LEAVING EVERYONE IN HIS WAKE BY FAR THE WEALTHIEST OF THE CLASS OF '93 MR SHIKULOV EARNED 130000 LAST YEAR WORKING THE FAST LANE OF INTERNATIONAL TRADE HIS COMPANY SPECIALIZES IN IMPORTS OF CHINESEMADE HANDBAGS TAKING OVER A MONOPOLY ONCE HELD BY A NOWDEFUNCT STATE ORGANIZATION TO SUPPLEMENT THE HANDBAG BUSINESS MR SHIKULOV HAS SPENT MUCH OF THE PAST THREE YEARS TRAVELING ACROSS RUSSIA'S BORDERS SWAPPING RUSSIAN GOODS FOR WHATEVER HE COULD FROM ITALY CHINA YUGOSLAVIA I NEVER LET SCHOOLWORK INTERFERE WITH MY BUSINESS HE SAYS WITHOUT A TRACE OF IRONY BASICALLY I JUST SHOWED UP FOR THE TESTS THIS YEAR WITHOUT EVEN EXAMS TO SLOW HIM DOWN HE EXPECTS TO MAKE FAR MORE MONEY ARRIVING FOR LUNCH AT A TRENDY RUSSIANAMERICAN JOINTVENTURE RESTAURANT MR SHIKULOV PULLS UP IN A BRANDNEW BLACK MERCEDES COUPE THE CAR COST HIM 40000 HE REMOVES AN ELABORATE MOBILE PHONE AND HANDS IT TO THE MAITRE D'HOTEL FOR SAFEKEEPING MR SHIKULOV IS A WALKING GAP ADVERTISEMENT HE WEARS JEANS A WHITE TSHIRT AND A DENIM JACKET HE SPORTS A FASHIONABLE HAIRCUT AND A PERPETUAL FIRSTDAY STUBBLE MR SHIKULOV SEEMS INTENT ON SPENDING HIS MONEY AS FAST AS HE MAKES IT HE IS BUILDING A DACHA OUTSIDE MOSCOW AND HAS JUST FORKED OVER 50000 ON A FOURROOM APARTMENT IN THE CITY HE ALSO BLOWS THOUSANDS OF DOLLARS AT HIS FAVORITE HAUNT AN UPSCALE NEW NIGHTCLUB CALLED TROIKA FEATURING AN ELABORATE LATENIGHT STRIPTEASE SHOW IT'S A CLASSY PLACE MR SHIKULOV SAYS I CAN FEEL LIKE A DECENT PERSON THERE ON THE OUTSKIRTS OF MOSCOW WORKING FROM A DRAB SOVIETERA HOTEL VYACHESLAV KOLOSKOV IS BUILDING UP A TRADING EMPIRE AS AN UNDERCLASSMAN HE WAS INTRODUCED OVER DINNER TO THE DIRECTOR OF ANIS INVESTMENT INC A BIG MOSCOW TRADING HOUSE THEY SPOKE BRIEFLY AND THE DIRECTOR OFFERED MR KOLOSKOV A JOB WITHIN A FEW MONTHS HE WAS NAMED SALES MANAGER HE HEADS AN EIGHTPERSON DEPARTMENT THAT LAST YEAR DID 13 BILLION RUBLES IN SALES EQUAL THEN TO ABOUT 25 MILLION ANIS IS UNUSUAL IN TRYING TO EVOLVE FROM A TRADER TO A PRODUCING COMPANY A RARE TRANSITION AMONG THE NEW WAVE OF RUSSIAN ENTERPRISES IT IS BUILDING A VITAMINPRODUCTION PLANT HERE AND WILL MOVE FROM EUROPE TO RUSSIA A NUMBER OF MANUFACTURING OPERATIONS THAT PRODUCE COSMETICS LIQUOR AND CIGARETTES JUST RUNNING A COMPANY AND MAKING A LOT OF MONEY ISN'T ENOUGH SAYS THE TALL SOFTSPOKEN MR KOLOSKOV WHO WEARS TWO GOLD RINGS A GOLD CHAIN AND EXPENSIVE ITALIAN LOAFERS MY GOAL IS TO DO SOMETHING TO HELP REVIVE RUSSIA'S ECONOMY MR KOLOSKOV IS MORE THE ACADEMIC THAN MANY OF HIS CLASSMATES HIS THESIS ON HOW A PRIVATE CONCERN LIKE ANIS THRIVED DURING RUSSIA'S TRANSITIONAL ECONOMIC PERIOD AMOUNTED TO A PRIMER ON THE NEW ECONOMY IT ALSO BOGGLED THE MINDS OF HIS ONETIME MARXIST PROFESSORS WHO GRILLED HIM FOR HOURS AT HIS ORAL EXAMS FAR FROM BEING HOSTILE THEY SIMPLY WANTED TO LEARN ALL ABOUT HOW THE NEW ECONOMY WORKS MR KOLOSKOV SAYS HE GRADUATED SUMMA CUM LAUDE MR KOLOSKOV'S MONTHLY PAY IS 100000 RUBLES PLUS 1000 IN HARD CURRENCY THE SALARY ISN'T OBSCENE BUT THE PERKS ARE EXTRAVAGANT WHEN HE BECAME A MANAGER HE GOT A COMPANYBUILT DACHA AND PLOT OF LAND WORTH PERHAPS 150000 THAT AND A FREE CAR ARE HIS TO KEEP EVEN IF HE LEAVES THE COMPANY ACROSS TOWN SERGEI BAKUNIN PREFERS A MORE STABLE LIFE AT 24 HE HEADS A TEAM OF SECURITIES TRADERS AT INKOM BANK ONE OF RUSSIA'S TOP 10 BANKS HE COULD EARN MORE IN SPECULATIVE TRADE BUT HE THINKS IT ISN'T WORTH THE RISK THESE GUYS ARE SUSCEPTIBLE TO THE WHIMS OF THE MARKET HE SAYS THEY COULD LOSE IT ALL STILL MR BAKUNIN ISN'T DOING BADLY HE TOO EARNS THE EQUIVALENT OF 1000 A MONTH ON A RECENT MORNING MR BAKUNIN STRIDES PURPOSEFULLY LEATHER BRIEFCASE IN HAND TO HIS OFFICE BUILDING IN CENTRAL MOSCOW THE BANK'S NEW SECURITIES DEPARTMENT BRIMMING WITH NEW PERSONAL COMPUTERS AND STILL SMELLING OF FRESH PAINT IS AN OASIS OF MODERNITY AND CLEANLINESS IN AN OTHERWISE DILAPIDATED HIGHRISE BEFORE MR BAKUNIN CAN SIT DOWN A COLLEAGUE MANY YEARS HIS SENIOR RUSHES FORWARD TO ASK FOR HELP THE COLLEAGUE IS STUMPED BY A CLIENT'S QUESTION MR BAKUNIN ANSWERS IT PATIENTLY EXPLAINING THE DIFFERENCE BETWEEN A SHARE'S PAR VALUE AND ITS ACTUAL SALES PRICE YOU COULDN'T REALLY LEARN ANY OF THIS IN SCHOOL HE SAYS WE'RE BUILDING A RUSSIAN MARKET WITH NEW IDEAS AND NEW INSTRUMENTS YOU JUST LEARN AS YOU GO MR BAKUNIN SAYS HIS PARENTS CONSERVATIVE MEMBERS OF THE SOVIET INTELLIGENTSIA AREN'T SURE WHAT TO MAKE OF THEIR SON THEY'RE NOT EXACTLY PROUD OF ME HE SAYS INDEED THE NEW VALUES OFTEN TRANSLATE POORLY ACROSS A WIDE SPECTRUM OF SOVIET SOCIETY JUST COMING TO GRIPS WITH NOTIONS OF PRIVATE PROPERTY AND PROFITS NOW THEY SEE THIS NEW MONEYED CLASS INDULGING IN FREESPENDING LIFESTYLES THAT CLASH JARRINGLY WITH THE DAYTODAY EXISTENCE OF THE AVERAGE RUSSIAN CITIZEN CONSIDER MR SHIKULOV HIS 10000PLUS MONTHLY SALARY MAKES HIM THE EQUIVALENT OF AN AMERICAN MULTIMILLIONAIRE IN A SOCIETY WHERE THE AVERAGE WORKER TAKES HOME THE RUBLE EQUIVALENT OF 25 A MONTH HE SENDS MONEY TO HIS MOTHER WHOSE INFLATIONRAVAGED MONTHLY PENSION NOW BARELY COVERS THE COST OF A WEDGE OF CHEESE YET HE THINKS NOTHING OF SPENDING 80 ON LUNCH AT A TRENDY MOSCOW CAFE THE CLASH OF VALUES PEAKED IN RUSSIA LAST SPRING WHEN PRESIDENT BORIS YELTSIN AND HIS CONSERVATIVE PARLIAMENTARY FOES LOCKED HORNS IN A BITTER POWER STRUGGLE THE CLASS OF '93 ROOTED FOR THE PRESIDENT TO PREVAIL THOUGH MANY HAVE LITTLE ENTHUSIASM FOR MR YELTSIN UNFORTUNATELY THERE'S NO GOOD ALTERNATIVE SAYS MR BAKUNIN FOR NOW RADICAL ECONOMIC REFORM DEPENDS ON YELTSIN AND HIS TEAM REFLECTING ON THE CLASS OF '93 MR BAKUNIN RECALLS THE US MOVIE WALL STREET WHICH CAPTURED THE ANYTHINGGOES PROFITMAKING PHILOSOPHY OF THE 1980S I CAN SEE THE SIMILARITIES HE SAYS WE'RE DRAWING CLOSER EVERY DAY TATIANA KOLOSKOVA A CONSULTANT AT MOSCOW'S LENIN MUSEUM AND THE MOTHER OF VYACHESLAV KOLOSKOV FINDS HERSELF STRUGGLING TO UNDERSTAND HER OWN SON'S SUCCESS I HOPE THIS GENERATION WILL DO MORE THAN JUST FILL THEIR OWN POCKETS SHE SAYS 9308020052 930802 LEISURE & ARTS BOOKSHELF OBSESSIONS AND CORRUPTION IN AZTEC COUNTRY BY EDWARD HOWER EVERY AUTHOR WHOSE WORK HAS BEEN SAVAGED BY REVIEWERS MUST DREAM OF WRITING A BOOK IN WHICH HE TORMENTS A CRITIC TO THE BRINK OF INSANITY WALTER ABISH'S STUNNING NEW NOVEL ECLIPSE FEVER KNOPF 335 PAGES 23 IS THIS DREAM COME TRUE BUT THERE'S A LOT MORE TO IT THAN THAT MR ABISH AN AUSTRIANBORN AMERICAN WRITER HAS HIMSELF STRUGGLED TO ACHIEVE RECOGNITION FOR HIS HIGHLY ORIGINAL EXPERIMENTAL FICTION THOUGH HIS PREVIOUS NOVEL HOW GERMAN IS IT WAS A CRITICAL SUCCESS AND WON THE PEN FAULKNER AWARD ECLIPSE FEVER IS LESS EXPERIMENTAL THOUGH JUST AS INTELLECTUALLY CHALLENGING AS HIS PREVIOUS WORK IT ALSO HAS THE KIND OF INTRIGUING CHARACTERS DARK HUMOR AND MASTERFUL PLOTTING THAT MIGHT GAIN HIM THE WIDER READERSHIP HE DESERVES SET MOSTLY IN MEXICO THE NOVEL CENTERS ON THE TRIALS OF ALEJANDRO MUCHO A FAMOUS CRITIC WHOSE WIFE HAS LEFT HIM JUST WHEN EVERYONE ON THE LITERARY SCENE IS PRESSURING HIM FOR FAVORS PUBLISHERS AND TV PEOPLE SCHEME TO ENLIST HIS HELP IN TURNING THE VISIT OF A MEDIOCRE NORTH AMERICAN NOVELIST INTO A GREAT LITERARY EVENT A CORRUPT ENTREPRENEUR FROM THE STATES TRIES TO MANIPULATE HIM INTO FAVORABLE ARTICLES ABOUT A SCHEME TO CONDOIZE MEXICO'S ANCIENT AZTEC PYRAMIDS HIS SUPPOSED BEST FRIEND USES HIM TO COVER UP AN ILLICIT ROMANCE GORGEOUS CONNIVING WOMEN KEEP TRYING TO SEDUCE HIM BUT ALEJANDRO BUFFETED AND BEWILDERED JUST WANTS TO BE LEFT ALONE TO FIGURE OUT HOW TO GET HIS WIFE BACK MEANWHILE BONNY THE 16YEAROLD DAUGHTER OF THE NORTH AMERICAN NOVELIST RUNS AWAY WHEN HER FATHER TAKES UP WITH ALEJANDRO'S WIFE A COLD BEAUTIFUL WOMAN SURELY NOT ACCIDENTALLY NAMED MERCEDES LONELY AND LOST BONNY DRIFTS FROM NEW YORK TO LOS ANGELES TO MEXICO WRITING DESPERATE LETTERS HOME AS SHE JOURNEYS TOWARD A CITY WHERE SHE WANTS TO VIEW A COMING SOLAR ECLIPSE THE AZTECS BELIEVED THAT DURING AN ECLIPSE THEIR GODS WOULD COME DOWN TO DEVOUR MEN A TOURIST TELLS BONNY AND THROUGHOUT THE BOOK THERE IS A GROWING SENSE OF MENACE AS THE GODS SEEM ABOUT TO TAKE REVENGE ON THOSE WHO ARE DESECRATING MEXICO'S INDIAN HERITAGE THE COUNTRY'S INTELLECTUALS THE LIGHTSKINNED BLANCO ELITE VIE WITH EACH OTHER TO PANDER TO THE VORACIOUS NORTH AMERICANS AS PRESTON THE ENTREPRENEUR HELPS HIMSELF TO STOLEN AZTEC ARTIFACTS HIS SPOILED WIFE RITA FLAUNTS HER MEXICAN LOVER AND HER PRICELESS PRECOLUMBIAN JEWELRY PECH A SOCIALITE ART THIEF FROM ARIZONA USES INDIANS TO DO HIS DIRTY WORK AS HE CLOSES IN ON AN ANCIENT AZTEC CODEX BUT THIS IS ONE ARTIFACT THAT SEEMS TO RETAIN THE POWER TO CURSE ALL WHO TRY TO POSSESS IT ALEJANDRO BECOMES A STUDY IN OBSESSION HIS FRIENDS JOKINGLY COMPARE HIM TO THE TORMENTED LOVER IN LUIS BUNUEL'S FILM THAT OBSCURE OBJECT OF DESIRE AT THE FUNERAL OF ALEJANDRO'S FATHER EVEN THE PRIEST JOINS IN DELIVERING A RIDICULOUS SERMON THAT REEKS OF TRENDY FILM CRITICISM BUNUEL HE SAYS HAS GONE OUT OF HIS WAY TO PROCLAIM THAT THE INABILITY TO ATTAIN FULFILLMENT IS THE KEY TO OUR HUMANITY NOT EXACTLY THE SOLACE ALEJANDRO NEEDS WHEREVER ALEJANDRO GOES HE WANDERS INTO THICK CLOUDS OF PRETENTIOUS CHITCHAT EVERYONE IT SEEMS WANTS TO BE A CRITIC AT A KIND OF LITERARY SOCCER MATCH HE IS KICKED HALF TO DEATH BY HIS SOCALLED COLLEAGUES AND HAS TO BE TAKEN TO THE EMERGENCY ROOM EVEN NOW THOUGH HIS TRIALS ARE NOT OVER FOR HE HAS BECOME A COG IN A PLOT MORE SINISTER THAN HE COULD IMAGINE SO HAS BONNY THE AMERICAN TEENAGER WHO IS ON THE RUN FROM ART THIEVES SHE HAD THOUGHT WERE HER FRIENDS WHEN THE THIEVES PURSUE HER DEEPER INTO MEXICO SHE FINDS THAT HER ONLY REFUGE IS THE RELATIVE SAFETY OF THE JUNGLE AS AMORAL AS THE ADULT CHARACTERS BONNY IS NONETHELESS A TRUSTING AND HEARTBREAKINGLY INNOCENT CHILD WHOSE SAFETY BECOMES OF REAL CONCERN TO US AS THE BOOK PROGRESSES BY INTERWEAVING HER STORY WITH ALEJANDRO'S MR ABISH PROVIDES RELIEF FROM THE DARKLY COMIC GOINGSON IN THE CYNICAL CAPITAL BONNY'S PRESENCE IN THE NOVEL REMINDS US THAT NOT EVERYONE IS OUT TO CANNIBALIZE EACH OTHER IN THE NAME OF ART AND PROFIT THERE ARE PEOPLE DESERVING OF MORE THAN SCORN AS BONNY'S OBSESSION WITH THE ECLIPSE NEARLY KILLS HER SO ALEJANDRO'S OBSESSION WITH HIS WIFE NEARLY CAUSES HIM TO LOSE HIS MIND IRONICALLY ALEJANDRO EMERGES AS ONE OF THE FEW CHARACTERS WHO TRIES HIS BEST TO HOLD ONTO HIS INTEGRITY HELPING BONNY'S FATHER TO SEARCH FOR HER DESPITE THE FACT THAT THE NOVELIST HAS CUCKOLDED HIM LIKE MR ABISH'S PREVIOUS WORK ECLIPSE FEVER IS FULL OF IDEAS EVEN WHEN DISCUSSED BY SYCOPHANTS THE THEORIES ABOUT LITERATURE FILM NORTH AMERICAN IMPERIALISM AND MEXICAN CULTURE ARE ALWAYS INTERESTING THEY ALSO DEVELOP INTO THEMES THAT SKILLFULLY WEAVE THE PLOT LINES TOGETHER BUT ECLIPSE FEVER IS MORE THAN A BRILLIANT STUDY OF CORRUPTION MR ABISH KNOWS WHEN TO USE COMIC DETACHMENT AND WHEN TO SHOW US THE TRAGEDY THAT LIES BENEATH OUR LUDICROUS OBSESSIONS MR HOWER'S MOST RECENT BOOK IS THE POMEGRANATE PRINCESS 9308020050 930802 AUTOS NISSAN'S METAMORPHOSIS FROM STODGY TO STYLISH WORKS MAGIC ON CAR BUYERS BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL WHEN SALLY SWEET SHOPPED FOR A NEW CAR FIVE YEARS AGO SHE CHOSE A HONDA ACCORD OVER THE NISSAN STANZA BOTH CARS DROVE WELL ENOUGH BUT THE ACCORD WAS STYLISH AND THE STANZA WAS PLAIN THAT WAS THEN WHEN THE TIME CAME LAST MARCH FOR MS SWEET TO REPLACE HER FIVEYEAROLD ACCORD THE NORFOLK VA EXECUTIVE ASSISTANT SAYS SHE NARROWED HER SEARCH TO THREE MODELS THE ACCORD DIDN'T EVEN MAKE THE CUT WHAT WAS HER TOP CHOICE THE NISSAN ALTIMA THIS NEW ALTIMA IS GORGEOUS MS SWEET GUSHES I LIKE THE STYLING AND THE PRICE WAS RIGHT I DIDN'T EVEN LOOK AT THE ACCORD BECAUSE IT LOOKS LIKE WHAT I ALREADY HAD SUDDENLY US CAR BUYERS ARE TAKING A SECOND LOOK AT NISSAN AND THAT IS FUELING AN ABRUPT TURNAROUND FOR A BRAND THAT HAD BEEN BADLY LAGGING NISSAN OVERHAULED ITS STODGYLOOKING LINEUP REPLACING IT WITH SLEEK STYLISHLY ROUNDED VEHICLES THE JAPANESE AUTO MAKER IS PROMOTING ITS FRESH UPSCALE IMAGE IN AN AGGRESSIVE MARKETING CAMPAIGN THE SEEDS THEY PLANTED OVER THE LAST FIVE YEARS ARE STARTING TO BEAR FRUIT SAYS SUSAN JACOBS OF JACOBS & ASSOCIATES A CAR CONSULTING CONCERN IN LITTLE FALLS NJ NISSAN'S STRENGTHS ARE NOW BEING RECOGNIZED IN THE MARKET INDEED NISSAN MOTOR CO IN JUNE OUSTED HONDA MOTOR CO FROM ITS LONGHELD PERCH AS THE NO 2 IMPORT MANUFACTURER IN THE US BEHIND TOYOTA MOTOR CORP AND NISSAN WAS THE ONLY JAPANESE AUTO MAKER TO GAIN MARKET SHARE IN THE FIRST HALF GROWING TO 47 FROM 42 THAT IS A BIG REVERSAL FROM THE SQUANDERED '80S WHEN NISSAN BUMBLED ALONG WITH MISGUIDED MARKETING AND PRODUCTS THAT LACKED PIZAZZ NISSAN BECAME A SMALL PLAYER IN ABOUT EVERY NICHE MARKET WITHOUT MAKING A BIG SPLASH ANYWHERE THE RESULT ITS SHARE OF THE US MARKET STALLED WHILE HONDA AND TOYOTA ON THE STRENGTH OF THE ACCORD AND CAMRY WIDENED WE HAD EIGHT YEARS OF PAIN IN THE US ACKNOWLEDGES A NISSAN EXECUTIVE WE HAD GONE STEADILY DOWNWARD WE HAD TO GET SOPHISTICATED IN FINANCE WE HAD TO GET GOOD AT MARKETING WITH A LITTLE BIT OF MONEY ALL THAT STARTED TO CHANGE IN THE LATE 1980S WHEN NISSAN BEGAN ROLLING OUT A STRING OF SUCCESSFUL NEW PRODUCTS FIRST CAME THE RESTYLED NEARLUXURY MAXIMA SEDAN IN 1989 THEN IN 1992 THERE WERE THE MIDSIZE ALTIMA FAMILY SEDAN AND THE QUEST MINIVAN THE MINIVAN IS PART OF A PARTNERSHIP WITH FORD MOTOR CO WHICH SELLS ITS VERSION AS THE MERCURY VILLAGER COMBINED SALES OF THE THREE PRODUCTS REPRESENT 40 OF NISSAN'S TOTAL AND THE THREE NEW VEHICLES GIVE NISSAN FOOTHOLDS IN TWO OF THE INDUSTRY'S HOTTEST SEGMENTS THE BIG GAMBLE FOR NISSAN WAS THE ALTIMA NISSAN'S SWING INTO THE MAINSTREAM FROM THE NICHE MARKETS HINGED ON ALTIMA'S SUCCESS AND DEALERS FRETTED THAT THE ALTIMA SMALLER THAN FORD'S TAURUS AND TOYOTA'S CAMRY WAS TOO SMALL TO MAKE A DENT IN THE FIERCELY COMPETITIVE MIDSIZE SEDAN MARKET BUT NISSAN SPENT HEAVILY LAST FALL TO LAUNCH THE SLEEK ALTIMA ITS REPLACEMENT FOR THE BOXY OLD STANZA NISSAN PRICED ALTIMA AT 13000 FOR THE BASE MODEL BUT MOST BUYERS SEEK OUT THE ALTIMA GXE EQUIPPED WITH A VALUE PACKAGE OF OPTIONS INCLUDING AIR CONDITIONING POWER DOOR LOCKS AND CRUISE CONTROL FOR ABOUT 15000 THAT IS AT LEAST 3000 LESS THAN A COMPARABLY EQUIPPED CAMRY ACCORD OR TAURUS AND NISSAN'S ADS UNDERSCORED THE POINT PORTRAYING THE CAR AS STYLISH SAFE AND AFFORDABLE NISSAN SOLD 55464 ALTIMAS IN THE FIRST HALF OF THIS YEAR AT THAT PACE ALTIMA'S SALES FOR ALL OF 1993 WILL EASILY SURPASS STANZA'S 1991 SALES OF 73475 THE SUCCESS OF ALTIMA IS REALLY THE PRIMARY DRIVER IN THE CONTINUATION OF NISSAN'S REBIRTH IN THE MARKET SAYS CHRISTOPHER CEDERGREN AUTO ANALYST AT AUTOPACIFIC GROUP INC THOUSAND OAKS CALIF AT THE SAME TIME THE QUEST MINIVAN GOT NISSAN INTO AN INTENSELY COMPETITIVE AND INCREASINGLY IMPORTANT MARKET A SEGMENT WHERE HONDA DOESN'T COMPETE FORD BUILDS THE QUEST FOR NISSAN AT ITS AVON LAKE OHIO ASSEMBLY PLANT THE QUEST IS BRINGING IN A WHOLE NEW BUYER SAYS JERRY ROBINSON GENERAL MANAGER OF RIVERSIDE NISSAN INC TULSA OKLA THEY MIGHT BE LOOKING FOR A MINIVAN BUT ONCE THEY COME IN THEY'LL LOOK AT THE OTHER VEHICLES WE DIDN'T HAVE THAT DRAW BEFORE NOW NISSAN HAS A RARE OPPORTUNITY TO PULL AHEAD OF ITS CLOSEST COMPETITOR RECALLS ROBERT J THOMAS THE NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NISSAN'S US SALES ARM HONDA IS VULNERABLE BECAUSE SALES OF ITS OLDER ACCORD ARE SLOWING AND THE NEW ACCORD WON'T BE OUT UNTIL THIS FALL SO WHEN MR THOMAS BECAME CHIEF OF NISSAN'S US SALES UNIT IN APRIL HE SET A GOAL OF RECLAIMING THE NO 2 IMPORT MANUFACTURER SPOT THAT NISSAN SURRENDERED IN THE EARLY 1980S NISSAN IS THE NO 2 JAPANESE AUTO MAKER IN THE WORLD BEHIND TOYOTA HE CHALLENGED DEALERS TO CRANK UP SALES BY OFFERING THEM UP TO 250 FOR EACH UNIT SOLD BEYOND THEIR SALES OBJECTIVES HE SWEETENED BONUSES FOR NISSAN MANAGERS HE CREATED THE SENTRA LIMITED EDITION WITH A LOWERPRICED OPTION PACKAGE AND HE FOCUSED THE BULK OF NISSAN'S MARKETING FUNDS ON NISSAN'S BREADANDBUTTER PRODUCTS THE ALTIMA SENTRA AND MAXIMA THE IMPACT OF THE NEW MARKETING STRATEGY WAS IMMEDIATE SENTRA SALES WHICH HAD BEEN LANGUISHING AROUND 13000 VEHICLES A MONTH SWELLED IN JUNE TO 22000 VEHICLES THESE EFFORTS ALSO WENT A LONG WAY TOWARD REPAIRING FRAYED RELATIONS BETWEEN NISSAN AND ITS DEALERS NISSAN DEALERS FELT THAT THE COMPANY WAS UNRESPONSIVE TO THEIR COMPLAINTS AND SUGGESTIONS AND THEY FELT NISSAN'S MARKETING STRATEGY LACKED DIRECTION AND FOCUS NOW HOWEVER EVERYBODY IS SINGING OUT OF THE SAME HYMN BOOK SAYS JOHN BALDWIN NEWCAR MANAGER OF GREEN GIFFORD MOTOR NORFOLK VA THERE'S MUCH CLEARER VISION AND THEY ARE PUTTING SOME MARKETING WEIGHT BEHIND THE VEHICLES CAN NISSAN SUSTAIN ITS NEW SALES MOMENTUM HONDA PLANS TO INTRODUCE ITS NEW ACCORD THIS FALL MITSUBISHI MOTORS CO IS ROLLING OUT ITS NEW GALANT AND NISSAN IS STILL UP AGAINST SUCH HEAVYWEIGHTS AS THE TAURUS AND THE CAMRY NISSAN SAYS IT IS REVVING UP TO DEFEND ITS NEW NO 2 RANKING IT MAY USE SOME SORT OF VALUE PRICE STRATEGY OR AGGRESSIVE LEASE PROGRAM ON THE ALTIMA TO KEEP UP THAT CAR'S MOMENTUM WHEN IT ROLLS OUT A NEW MAXIMA NEXT SPRING AND NISSAN SAYS IT WANTS TO MAINTAIN ITS PRICE ADVANTAGE OVER ITS COMPETITORS SO ITS 1994 PRICE INCREASES WILL BE IN LINE WITH RIVAL JAPANESE AUTO MAKERS NISSAN SAYS WE PLAN TO BE AGGRESSIVE IN REMAINING THE NO 2 MR THOMAS SAYS THERE'S A LOT OF POTENTIAL THAT HASN'T BEEN TAPPED 9308020049 930802 MOST CANADA FIRMS POST SIZABLE GAINS IN NET BUT ANALYSTS ARE DISAPPOINTED BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO MOST CANADIAN COMPANIES CONTINUED TO POST SOLID IMPROVEMENT IN EARNINGS FOR THE SECOND QUARTER ALTHOUGH THESE GAINS WEREN'T AS LARGE AS MANY ANALYSTS HAD EXPECTED THE BIGGEST DISAPPOINTMENT WAS THE TELECOMMUNICATIONS CONCERN NORTHERN TELECOM LTD OR NORTEL WHICH RECORDED A US116 BILLION RESTRUCTURING CHARGE AGAINST SECONDQUARTER EARNINGS RESULTING IN A LOSS OF US103 BILLION AGAINST NET INCOME OF US723 MILLION A YEAR EARLIER NORTEL'S CHARGE CASCADED DOWN TO ITS 53OWNER BCE INC WHICH REPORTED A LOSS OF 520 MILLION CANADIAN DOLLARS US404 MILLION AGAINST A YEAREARLIER PROFIT OF C246 MILLION EXCLUDING NORTEL AND ITS PARENT THOUGH A WALL STREET JOURNAL SURVEY OF 120 EARLYREPORTING COMPANIES SHOWED COMBINED SECONDQUARTER PROFIT ROSE 39 TO C103 BILLION FROM C7403 MILLION A YEAR AGO FEWER COMPANIES REPORTED LOSSES AND OF THOSE THAT DID MOST NARROWED THEIR LOSSES CONSIDERABLY THE GOOD NEWS IS THAT WE'RE SEEING SOME OF THE CYCLICAL COMPANIES RETURN TO HEALTH AND PROFITABILITY SAID SUBODH KUMAR PORTFOLIO STRATEGIST AT WOOD GUNDY INC A TORONTOBASED BROKERAGE HOUSE THE BAD NEWS IS THESE IMPROVEMENTS ARE COMING MORE SLOWLY THAN EXPECTED AND THAT THE CYCLE OF WRITEDOWNS DOESN'T SEEM TO HAVE ENDED ONE OF THE STRONGEST RECOVERIES WAS SEEN IN THE INDUSTRIAL PRODUCTS SECTOR WHERE 21 COMPANIES POSTED A COLLECTIVE PROFIT OF C631 MILLION COMPARED WITH A LOSS OF C561 MILLION A YEAR EARLIER AND A LOSS OF C23 MILLION IN THE FIRST QUARTER OF 1993 ONLY ONE OF CANADA'S FOUR LARGE STEEL MANUFACTURING CONCERNS STELCO LTD POSTED A LOSS WHILE DOFASCO INC THE COUNTRY'S LARGEST STEEL PRODUCER HAD A PROFIT OF C67 MILLION COMPARED WITH A LOSS OF C659 MILLION A YEAR EARLIER DESPITE FALLING REVENUE NINE CONSUMER PRODUCTS COMPANIES REPORTED A COMBINED PROFIT OF C138 MILLION UP 177 FROM A YEAR EARLIER AND UP 41 FROM THE FIRST QUARTER OF 1993 ONCE AGAIN THE SHARP IMPROVEMENT WAS DUE ALMOST SOLELY TO THE RESULTS OF FORD MOTOR CO OF CANADA WHICH REPORTED A SECONDQUARTER PROFIT OF C137 MILLION COMPARED WITH A LOSS OF C693 MILLION IN THE YEARAGO PERIOD ANALYSTS SAY THEY EXPECT RECOVERY IN OTHER CONSUMER PRODUCTS COMPANIES PARTICULARLY RETAILERS TO REMAIN SLUGGISH ALTHOUGH THE OIL AND GAS SECTOR HAS BEEN ONE OF THE STRONGEST PERFORMERS ON THE TORONTO STOCK EXCHANGE THIS YEAR EARNINGS HAVEN'T KEPT PACE WITH RISING STOCK PRICES THIRTEEN EARLYREPORTING COMPANIES TOGETHER REPORTED A PROFIT OF C1894 MILLION FOR THE QUARTER UP 124 FROM A YEAR EARLIER BUT DOWN 17 FROM THE FIRST QUARTER ALL FOUR OF CANADA'S LARGE CRUDE OIL REFINING AND MARKETING CONCERNS APPEAR TO HAVE SUFFERED FROM LOW PROFIT MARGINS DRAGGING DOWN THE GROUP'S PERFORMANCE FROM THE FIRST QUARTER AND OFFSETTING STRONGER PROFITS BY SMALLER ENERGY PRODUCERS BOOSTED BY LUMBER PRICES WHICH FELL SLIGHTLY FROM THE FIRST QUARTER BUT STILL REMAINED RELATIVELY STRONG 14 FOREST PRODUCTS CONCERNS SAW THEIR COLLECTIVE LOSSES SHRINK TO C247 MILLION FROM C2191 MILLION A YEAR AGO AND C1411 MILLION IN THE FIRST QUARTER ALL OF THE EARLYREPORTING FOREST PRODUCTS CONCERNS SAW THEIR FINANCIAL PERFORMANCE IMPROVE FROM YEARAGO LEVELS ONE KEY SECTOR OF THE CANADIAN ECONOMY THAT HAS YET TO SHOW SUBSTANTIAL IMPROVEMENT IS THE MINING INDUSTRY TEN MINING CONCERNS REPORTED NET INCOME OF ONLY C77 MILLION DOWN 92 FROM YEARAGO LEVELS WEAK PRICES FOR COMMODITIES SUCH AS NICKEL AND ZINC CONTINUE TO HAUNT THESE COMPANIES ALTHOUGH THE GROUP DID SHOW AN IMPROVEMENT FROM THE FIRST QUARTER WHEN THEY TOGETHER REPORTED LOSSES OF C656 MILLION SECONDQUARTER EARNINGS HAVE BEEN QUITE CHOPPY WITH MINING RESULTS COMING IN LOWER THAN EXPECTED AND THE UNUSUALLY LARGE HIT AT NORTEL SAID JIM DOAK DIRECTOR OF EQUITY RESEARCH AT SCOTIAMCLEOD INC A TORONTO INVESTMENT DEALER SHERRY COOPER CHIEF ECONOMIST AT BURNS FRY LTD SAID THAT THE SHARP FALL IN SHORTTERM INTEREST RATES AND THE LOWER VALUE OF THE CANADIAN DOLLAR CONTINUE TO HELP COMPANIES IMPROVE THEIR PROFITABILITY BUT SHE ADDED THAT THE CANADIAN ECONOMY NEEDS A BROADER RECOVERY IN COMMODITY PRICES AND AN IMPROVEMENT IN OTHER WORLD ECONOMIES BEFORE CORPORATE EARNINGS START TO CLIMB STEADILY ACROSS THE BOARD DESPITE THE MIXED BAG OF EARNINGS RESULTS THE CANADIAN STOCK MARKET REMAINS STRONG WITH THE TORONTO STOCK EXCHANGE'S 300 INDEX UP 184 TO DATE THIS YEAR ON THE EXPECTATION OF STRONGER PROFITS THAT HAVE YET TO BE MET MR DOAK SAID HE EXPECTS THE MARKET WHICH WAS SHAKEN BRIEFLY BY THE POOR MINING INDUSTRY RESULTS AND THE NORTEL CHARGE TO RIDE OUT THE REMAINDER OF THE SECONDQUARTER EARNINGS THE MARKET'S GOING FORWARD NOW HE SAID 9308020048 930802 MARKETING UPSTART DISCOUNTERS INVADE SNUFF MARKET BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL FOR DECADES UST INC ENJOYED A STRANGLEHOLD ON THE LUCRATIVE MARKET FOR SMOKELESS TOBACCO EVEN AS ITS COUSINS IN THE CIGARETTE BUSINESS LOST BILLIONS IN PROFITS TO CHEAP PRIVATELABEL CIGARETTES BUT NOW A FLURRY OF INTEREST IN A BUDDING MARKET FOR PRIVATELABEL SNUFF AS THE INDUSTRY PREFERS TO CALL THE PRODUCT POSES A THREAT TO UST'S GRIP ON THE 800 MILLION CATEGORY AN UPSTART CALLED HELME TOBACCO CO HAS INTRODUCED THE FIRST PRIVATELABEL SNUFF PRICED AT ABOUT HALF THE COST OF UST'S FLAGSHIP COPENHAGEN BRAND ANOTHER SMALL RIVAL PINKERTON TOBACCO CO IS ALSO CONSIDERING A DISCOUNTBRAND LAUNCH AND SOME BIG CONVENIENCE STORE CHAINS MAY START THEIR OWN STORE BRANDS BROWN & WILLIAMSON TOBACCO CORP THE US TOBACCO UNIT OF BA T INDUSTRIES PLC IS ALSO SHOWING SOME INTEREST IN SNUFF IT HAS BEEN QUIETLY TESTING A PREMIUM MOIST SNUFF DIAMONDBACK BUT SOME UST INVESTORS FEAR THAT B&W A BIG PLAYER IN CHEAP CIGARETTES WITH ITS GPCAPPROVED BRAND MAY DECIDE TO MAKE AN AGGRESSIVE PUSH INTO DISCOUNT SNUFF BECAUSE IT HAS LITTLE TO LOSE UST'S US TOBACCO CO UNIT WITH 86 OF THE SNUFF MARKET BRUSHES OFF THE THREAT FROM CHEAP SNUFF WE DON'T FEEL OUR BUSINESS WILL BE IMPACTED AT ALL SAYS A UST SPOKESMAN INDEED SALES OF PRIVATELABEL SNUFF DON'T EVEN SHOW UP YET IN MARKET SHARE NUMBERS COMPILED BY AC NIELSEN CO BUT THE NO 2 SNUFF MAKER IS LESS SANGUINE AT CONWOOD CO IN MEMPHIS TENN WHICH HAS 11 OF THE MARKET WE ARE CONCERNED ABOUT INROADS BY CHEAP ENTRIES SAYS JW COTHREN VICE PRESIDENT OF MARKETING AND ALTHOUGH HE DOESN'T SEE DISCOUNT LABELS MUSHROOMING AT THIS POINT IN TIME HE ADDS WE AREN'T IGNORING IT UST HAS IMPOSED RELENTLESS PRICE INCREASES OF 10 A YEAR OVER THE PAST DECADE THE PRICE OF COPENHAGEN NOW EXCEEDS A KEY PSYCHOLOGICAL THRESHOLD OF 2 A TIN RISING TO AN AVERAGE OF 225 AND TO MORE THAN 3 IN SOME HIGHTAX STATES AND ANALYSTS EXPECT THE COMPANY TO KEEP PUSHING PRICES UP A PROPOSAL TO QUADRUPLE THE FEDERAL TAX ON SNUFF TO 11 CENTS A CAN COULD ALSO SPUR THE SALE OF CHEAPER PRODUCTS THE RISING PRICES ARE A RED FLAG FOR SOME TOBACCO AND PRIVATELABEL EXPERTS IN MUCH THE SAME FASHION PHILIP MORRIS COS IMPOSED A STEADY ROUND OF PRICE INCREASES FOR ITS NO 1 MARLBORO BRAND OF CIGARETTES LETTING DISCOUNT BRANDS INVADE ITS MARKET DISCOUNT SNUFF WILL COME ON STRONG ESPECIALLY WITH THE PRICE HIKES SAYS LEON MORTON DIRECTOR OF MERCHANDISING FOR ELI WITT CO A TAMPA FLA TOBACCO DISTRIBUTOR HE PREDICTS DISCOUNT SNUFF SALES WILL REACH 30 OF THE BUSINESS IN THREE YEARS AT HELME TOBACCO OFFICIALS SAY DISCOUNTS COULD SEIZE 10 OF THE MARKET IN A FEW YEARS DEMOGRAPHICS ARE SQUARELY IN HELME'S CORNER THE HARDCORE USERS OF SNUFF ARE RURAL BLUECOLLAR WORKERS WHO ARE ALSO HEAVY USERS OF DISCOUNT CIGARETTES AND OTHER GENERIC PRODUCTS MOIST SNUFF MADE UP OF GROUND TOBACCO IS BY FAR THE BIGGEST PIECE OF THE SMOKELESS TOBACCO MARKET CHEWING IS A MISNOMER USERS TUCK A PINCH BETWEEN CHEEK AND GUM AND SUCK ON IT THE INDUSTRY PREFERS THE TERM SAVOR NICOTINE IS ABSORBED THROUGH MOUTH TISSUES PROVIDING A SLIGHT BUZZ IN 1986 THE SURGEON GENERAL WARNED THAT SMOKELESS TOBACCO USERS RUN A HIGHER RISK OF DEVELOPING ORAL CANCER THAN NONUSERS AND THE TINS WARN OF THE RISK OF MOUTH CANCER THE CATEGORY'S PROFIT MARGINS ARE ENVIABLE EVEN BY THE HIGH STANDARDS OF THE CIGARETTE BUSINESS WHILE A 2 PACK OF CIGARETTES PROVIDES 50 CENTS OF PROFIT A 2 TIN OF SNUFF PROVIDES A PROFIT OF 80 CENTS HELME A UNIT OF AMERICAN MAIZEPRODUCTS CO HAS THE LEAST TO LOSE BY DISRUPTING THE HIGHLY PROFITABLE INDUSTRY IN DOLLAR SALES IT IS THE SMALLEST SNUFF MAKER WITH A MERE 12 SHARE IN THE CIGARETTE BUSINESS LIGGETT GROUP INC NOW A UNIT OF BROOKE GROUP LTD HAD JUST 23 OF THE CIGARETTE MARKET WHEN IT DECIDED ITS ONLY HOPE FOR SURVIVAL LAY IN UNDERPRICING LARGER RIVALS TO BUILD VOLUME HELME IS BORROWING A PAGE FROM LIGGETT'S BOOK KNITTING TOGETHER A NETWORK OF THE SAME POWERFUL TOBACCO WHOLESALERS THAT PLAYED A KEY ROLE IN THE EXPLOSION OF DISCOUNT CIGARETTES ELI WITT IN FLORIDA IS OFFERING HELMEPRODUCED SUPERIOR VALUE SNUFF TO GAS STATIONS AND CONVENIENCE STORES ON THE WEST COAST CORE MARK INTERNATIONAL IS MARKETING HELME SNUFF THAT IT CALLS BEST BUY IN A FURTHER THREAT TO UST'S HOLD ON THE SNUFF MARKET QUIKTRIP CORP A TULSA OKLA CHAIN OF CONVENIENCE STORES IS CONSIDERING ADDING SNUFF TO ITS BESTSELLING BRONSON LINE OF CHEAP CIGARETTES BUT SOME EXPERTS SAY UST MAY BE ABLE TO SNUFF OUT THE THREAT OF PRIVATE LABEL BECAUSE THE MARKET IS STRIKINGLY DIFFERENT FROM THE REGULAR TOBACCO BUSINESS WHERE CHEAP SMOKES ACCOUNT FOR 40 OF SALES THE SNUFF MARKET IS STILL GROWING 3 A YEAR WHILE CIGARETTE SALES ARE FALLING SO CIGARETTE MAKERS HAVE CAPACITY LEFT OVER TO PRODUCE CHEAPER CIGARETTE LINES AND UST IS FAR MORE DOMINANT THAN ANY CIGARETTE COMPANY HELME AND PINKERTON TOGETHER CONTROL LESS THAN 5 OF THE SNUFF MARKET MOREOVER AVID SNUFF USERS SPEND ONLY ABOUT 8 A WEEK ON THEIR HABIT WHILE SMOKERS SPEND 20 THAT MAKES THE POTENTIAL SAVINGS FAR LESS SIGNIFICANT SNUFF USERS ALSO ACCOUNT FOR ONLY ABOUT 3 OF THE POPULATION COMPARED WITH 25 FOR SMOKERS SO RETAILERS MAY BE LESS WILLING TO SELL CHEAP CHAW AS A LOSS LEADER THE WAY THEY HAVE DISCOUNT SMOKES AND WHILE HELME AND OTHERS TAKE AIM AT THE LOW END UST IS COUNTING ON AFFLUENT WHITECOLLAR WORKERS WHO CHEW OCCASIONALLY AND FANCY THE MACHO IMAGE OF COPENHAGEN IT'S A YUPPIE THING NOW SAYS ANTHONY CHUCK A 24YEAROLD FLOOR CLERK AT THE NEW YORK STOCK EXCHANGE NEYAN CONTRACTOR WHO OWNS A SMALL TOBACCO SHOP IN NEW YORK'S FINANCIAL DISTRICT ADDS IT KEEPS ME IN BUSINESS SOME AIRBORNE WHITECOLLAR CHEWERS USE SNUFF AS A NICOTINE FIX ON NONSMOKING FLIGHTS THEY ASK YOU FOR A GLASS AND SIT THERE AND SPIT IN IT SAYS PATTY YOUNG A FLIGHT ATTENDANT FOR AMERICAN AIRLINES THE FRONT LINE OF THE SNUFF WAR IS THE CHECKOUT COUNTERS OF GROCERY AND CONVENIENCE STORES THERE RETAILERS SAY SNUFF SALESMEN HAVE BEEN KNOWN TO GLUE RIVALS' TINS INTO DISPLAY RACKS AND STICK PINHOLES INTO COMPETITORS' CANS IT DRIES IT OUT EXPLAINS DAN DAWSON MANAGER OF EXPRESS LANE MARKET IN KLAMATH FALLS ORE UST HAS AN AGGRESSIVE SALES FORCE OF 550 IT ALSO SUPPLIES THE THOUSANDS OF DISPLAY RACKS THAT HANG OVER CHECKOUT COUNTERS ENSURING THE BEST DISPLAY AND INSTORE ADVERTISING FOR ITS BRANDS LATELY UST HAS RESORTED TO 10 DISCOUNTS IN SOME MARKETS TO KEEP SALES MOVING ALTHOUGH EVEN EXECUTIVES AT HELME TOBACCO DON'T BELIEVE THE MOVE IS IN RESPONSE TO THEIR EFFORTS UST HAS ALSO MADE SURE THE RETAIL PIPELINE IS JAMMED WITH ITS NEW PRODUCTS INCLUDING A NEW CHERRY FLAVORED SKOAL ONE TRADE ADVERTISEMENT FOR THE NEW FLAVOR BECKONS TO RETAILERS STOCK UP NOW AND ENJOY THE NEW TASTE OF INCREASED PROFITS 9308020047 930802 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 1/4 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 66 DAYS 312 67 TO 89 DAYS 315 90 TO 119 DAYS 316 120 TO 158 DAYS 331 159 TO 179 DAYS 332 180 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 317 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 264 TWO MONTHS 270 THREE MONTHS 292 SIX MONTHS 316 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 306 30 DAYS 308 60 DAYS 310 90 DAYS 313 120 DAYS 324 150 DAYS 327 180 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 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 695 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 JULY 26 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 324 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 699 60 DAYS 706 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 696 60 DAYS 706 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 9308020046 930802 KOREAN BUSINESS GOVERNMENT TIES REDEFINED COURT RULING WILL BOOST INDUSTRY INDEPENDENCE TRIGGER MANY LAWSUITS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA A LANDMARK COURT RULING HANDED DOWN LAST WEEK COULD REDEFINE THE CLOSEKNIT RELATIONSHIP BETWEEN KOREAN GOVERNMENT AND BUSINESS WHILE SNARLING THE LEGAL SYSTEM WITH A SERIES OF LAWSUITS THE VERDICT WHICH DECLARED UNCONSTITUTIONAL A 1985 PRESIDENTIAL ORDER TO LIQUIDATE A CONGLOMERATE STRENGTHENS THE HAND OF LIBERALS WHO ARGUE FOR AN INDEPENDENT FINANCIAL AND INDUSTRIAL SECTOR BUT THE RULING COULD PROVE TOO BOLD EVEN FOR KOREA'S REFORMMINDED PRESIDENT KIM YOUNG SAM IT HAS A POSITIVE IMPACT ON THE PERCEPTION OF THE RELATIONSHIP BETWEEN GOVERNMENT AND BUSINESS SAID AN ADVISER TO MR KIM BUT IF YOU REALLY THINK ABOUT IT IT COULD MEAN HEADACHES FOR THE PRESENT ADMINISTRATION AND IT COULD MEAN CHAOS IN BUSINESS ACTIVITY ON THURSDAY KOREA'S CONSTITUTIONAL COURT RULED THAT THE DISSOLUTION OF THE KUKJEICC BUSINESS GROUP BY THENPRESIDENT CHUN DOO HWAN VIOLATED ARTICLE 119 OF THE KOREAN CONSTITUTION WHICH STATES THAT KOREA'S ECONOMY WILL BE BASED ON THE PRINCIPLES OF FREE ENTERPRISE AND INDIVIDUAL FREEDOM THAT MEANS THE GOVERNMENT MUST CONFINE ITSELF TO LEGAL CHANNELS WHEN ENFORCING ITS INDUSTRIAL POLICIES LAWYERS SAY PARTICULARLY WHEN LIQUIDATING AN ENTERPRISE THE CHUN ADMINISTRATION MOVED UNILATERALLY TO UNWIND KUKJE BECAUSE OF WHAT IT SAID WAS THE GROUP'S PERILOUSLY HIGH DEBT LEVELS PREVIOUSLY THE GOVERNMENT IMPLEMENTED POLICY USING ITS OWN TOOLS EITHER BY MORAL SUASION GUIDANCE OR ORDERS SAYS YOO SUNG MIN A FELLOW AT THE KOREA DEVELOPMENT INSTITUTE A GOVERNMENTFUNDED RESEARCH CENTER FROM NOW ON IT MUST FOLLOW PROPER LEGAL PROCEDURES THE RULING ALSO CLEARED THE WAY FOR THE GROUP'S FOUNDER YANG CHUNG MO TO RECLAIM HIS MANAGEMENT RIGHTS OVER THE 20 SUBSIDIARIES HE ONCE CONTROLLED MR YANG HAS ALREADY FILED SUIT TO RECLAIM HIS FORMER EQUITY STAKES IN LAWSUITS THAT COULD ENTANGLE SUCH COMPANIES AS DAELIM INDUSTRIAL CO AND AFFILIATES OF THE DAEWOO GROUP WHICH TOOK CONTROL OF SOME KUKJE SUBSIDIARIES MR YANG FACES A COMPLEX LEGAL WRANGLE AS THE SUBSIDIARIES ARE NOW DEEPLY INTEGRATED INTO THEIR NEW PARENTS THE DECISION WHICH CANNOT BE OVERTURNED HAS SWEEPING IMPLICATIONS UNDER THE CHUN REGIME NEARLY 80 BUSINESSES WERE DISSOLVED OR MERGED UNDER A CONTROVERSIAL RATIONALIZATION PLAN DESIGNED TO BAIL OUT DEBTRIDDEN COMPANIES THE SHAKEOUT WAS CONDEMNED BY MANY HEADS OF TARGETED COMPANIES AS A VENDETTA AGAINST MR CHUN'S ENEMIES THURSDAY'S RULING COULD PROVIDE THEM A PRECEDENT WITH WHICH TO BASE COMPENSATION CLAIMS COMPANIES THAT WERE ORDERED TO ABSORB THE AILING ENTERPRISES MAY ALSO DEMAND FOSTERAGE EXPENSES LAWYERS SAY THAT COULD BE A DRAIN ON CORPORATE RESOURCES AT A TIME WHEN THE KOREAN ECONOMY STRUGGLES TO RECOVER FROM A TWOYEAR SLUMP MORE SIGNIFICANTLY THE RULING COULD HASTEN AN END TO THE GOVERNMENT'S PATERNAL ROLE IN THE ECONOMY WHICH WOULD BE A BLESSING FOR SOME COMPANIES BUT POTENTIALLY CRIPPLING FOR OTHERS KOREAN DEVELOPMENT IN THE 1960S AND 1970S WAS LARGELY THE RESULT OF THE GOVERNMENT'S CENTRALIZED INDUSTRIAL POLICIES MANY BUSINESSMEN NOW BRIDLE AT THE REGULATIONS OTHERS PARTICULARLY THOSE WHO MANAGE WEAK ENTERPRISES FEAR FOR THEIR WITHDRAWAL ALSO UNNERVED BY THURSDAY'S VERDICT ARE COMMERCIAL BANKS LAWYERS SAY THE DECISION DEFINED KUKJE'S CHIEF CREDITORS AS INDEPENDENT BANKS WHICH IMPLIES THEY COULD BE HELD ACCOUNTABLE IN FUTURE LAWSUITS FOR KUKJE'S HIGHLY LEVERAGED CONDITION IN FACT THE LENDING POLICIES OF KOREA'S COMMERCIAL BANKS HAVE ALWAYS BEEN HEAVILY INFLUENCED BY THE MINISTRY OF FINANCE AND THE CENTRAL BANK SENSING THE NEED FOR CHANGE THE KIM ADMINISTRATION INTRODUCED AN AMBITIOUS REFORM PLAN THAT WILL DIVORCE GOVERNMENT FROM THE COUNTRY'S FINANCIAL AND INDUSTRIAL SECTORS WITHIN FIVE YEARS THE FRAMEWORK OF GOVERNMENT POLICY SHOULD BE TO CHANGE TO MARKET FORCES AND THE GOVERNMENT SHOULD GIVE UP INTERVENTION SAID FINANCE MINISTER HONG JAE HYONG IN AN INTERVIEW LATE LAST MONTH IT IS A PRECONDITION FOR ECONOMIC GROWTH FROM NOW ON THURSDAY'S RULING WHICH THE ADMINISTRATION OFFICIALLY APPLAUDED WOULD APPEAR TO ENSHRINE THAT AGENDA LESS CLEAR HOWEVER IS WHETHER THE DECISION WILL HAMPER THE GOVERNMENT'S EFFORT TO UNDO THE POLICIES OF THE PAST PRESIDENT KIM FOR EXAMPLE HAS FREQUENTLY ARGUED THAT KOREA'S HUGE CONGLOMERATES SHOULD STREAMLINE TO ENHANCE THEIR COMPETITIVENESS AND REDUCE THEIR INFLUENTIAL GRIP ON THE ECONOMY THE CONGLOMERATES KNOWN AS CHAEBOL GREW INTO LUMBERSOME GIANTS IN THE 1970S WHEN THE GOVERNMENT OFFERED SOFT LOANS TO ENCOURAGE COMPANIES TO INTEGRATE VERTICALLY AND ENTER COSTLY NEW INDUSTRIES ADMINISTRATION OFFICIALS HAVE FREQUENTLY SUGGESTED THEY WILL BREAK UP THE LARGELY FAMILYRUN CONGLOMERATES OR CHAEBOLS BY RAISING INHERITANCE TAXES THAT WOULD COMPEL INDUSTRIALISTS TO SELL SOME AFFILIATES TO THIRD PARTIES BY MAKING IT PROHIBITIVELY EXPENSIVE TO BEQUEATH THEM TO FAMILY MEMBERS BUT SUCH A TACTIC MIGHT NOT BE SO EASY IN THE WAKE OF THURSDAY'S DECISION SAY LAWYERS AND ANALYSTS AS ALMOST ALL THE CONGLOMERATES WERE SHAPED IN SOME WAY BY GOVERNMENT EDICT POLICIES SUCH AS SPECIALIZATION CAN NOW BE CHALLENGED BY BUSINESS GROUPS AS UNCONSTITUTIONAL SAYS MR YOO IN THE IMMEDIATE AND MIDTERM THE GOVERNMENT MAY FEEL POWERLESS TO ADOPT CERTAIN POLICIES 9308020044 930802 BUSINESS BRIEF SAPPORO BREWERIES LTD PRETAX PROFIT CLIMBED 51 IN FIRST HALF AT JAPAN FIRM SAPPORO BREWERIES LTD JAPAN'S THIRDLARGEST BEER MAKER REPORTED ITS UNCONSOLIDATED PRETAX PROFIT FOR THE FIRST HALF CLIMBED 51 FROM YEAREARLIER LEVELS PRETAX PROFIT WAS 493 BILLION YEN 463 MILLION UP FROM 469 BILLION YEN A YEAR AGO SALES CLIMBED 39 TO 25631 BILLION YEN FROM 24676 BILLION UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE SAPPORO'S OVERALL BEER SALES REPRESENTING 90 OF TOTAL SALES ROSE 4 TO 23058 BILLION YEN FROM 22231 BILLION YEN THE YEAR BEFORE IN TERMS OF VOLUME THE COMPANY'S TOP BRAND BLACK LABEL JUMPED 5 TO 266 MILLION CASES FROM 253 MILLION CASES 9308020043 930802 BUSINESS BRIEF JURONG SHIPYARD LTD PRETAX PROFIT DECLINED 14 IN 1ST HALF ON WEAK DEMAND JURONG SHIPYARD LTD'S PRETAX PROFIT SLID 14 FOR THE FIRST HALF OF THE YEAR ENDED JUNE 30 THE SINGAPORE SHIP REPAIR GROUP REPORTED FRIDAY JURONG SHIPYARD SAID THE FIRST QUARTER WAS ESPECIALLY BAD AS THE WORLD SHIPPING MARKET WAS WEAK AND DEMAND FOR SHIP REPAIRING SERVICES HIT A NEW LOW PRETAX PROFIT FOR THE FIRST HALF WAS 402 MILLION SINGAPORE DOLLARS US248 MILLION COMPARED WITH S468 MILLION THE SITUATION HAS IMPROVED STEADILY SINCE THE BEGINNING OF THE SECOND QUARTER OF 1993 JURONG SHIPYARD ADDED PREDICTING AN IMPROVEMENT IN PERFORMANCE IN THE SECOND HALF OF THE YEAR ANALYSTS SAID THE RESULTS WERE ABOUT EVEN WITH FORECASTS THEY SAID THE DECLINES IN PROFITS WEREN'T SURPRISING AFTER TWO OTHER SHIPYARD GROUPS HAD REVEALED LOWERTHANEXPECTED INTERIM EARNINGS ONE ANALYST SAID THE PICKUP OF SHIP REPAIR WORKS FROM THE SECOND QUARTER SHOULD HELP JURONG SHIPYARD ADDING THAT SOURCES AT THE COMPANY SAID THE AVERAGE REVENUE PER SHIP REPAIRED AT THE YARD HAS STABILIZED 9308020042 930802 BUSINESS BRIEF RYLAND GROUP INC NET INCOME DECLINED 31 DURING THE SECOND PERIOD RYLAND GROUP INC COLUMBIA MD A HOMEBUILDING AND MORTGAGESERVICE COMPANY REPORTED A 31 DECLINE IN SECONDQUARTER NET INCOME REFLECTING LOWER CONSUMER CONFIDENCE AND THE WEAK ECONOMY IN KEY MARKETS RYLAND SAID NET FELL TO 57 MILLION OR 33 CENTS A SHARE FROM 83 MILLION OR 48 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 26 TO 3754 MILLION FROM 366 MILLION THE COMPANY SAID ITS CORE HOMEBUILDING BUSINESS WAS HURT BY LOWER CONSUMER CONFIDENCE IN THE MIDATLANTIC AND THE WEAK ECONOMY IN SOUTHERN CALIFORNIA COMPETITIVE PRICING AND PREVIOUSLY HIGH LUMBER PRICES HAVE KEPT MARGINS NARROW BUT THE COMPANY SAID IT EXPECTS IMPROVEMENT WITH NEW PROJECTS' LOWER LAND COSTS AND THE RECENT DECLINE IN LUMBER PRICES IN THE FIRST HALF NET ROSE 13 TO 123 MILLION OR 71 CENTS A SHARE FROM 109 MILLION OR 66 CENTS A SHARE REVENUE ROSE 25 TO 6728 MILLION FROM 6567 MILLION 9308020041 930802 HEARD ON THE STREET SEMICONDUCTOR STOCKS TAKE ON NEW APPEAL ON PRODUCT INNOVATION AND EXPANDING USAGE BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS THE SMOKE CLEARS FROM THE SUMMER'S GRUESOME MASSACRE IN TECHNOLOGY STOCKS SEMICONDUCTOR SHARES STAND TALL AND UNLIKE IN THE PAST THESE OFTENMALIGNED SHARES IN COMPUTERCHIP MAKERS MAY ACTUALLY BE WORTH BUYING THIS TIME SAY SOME INVESTMENT PROS ASIDE FROM GIANTS SUCH AS INTEL AND MOTOROLA SEMICONDUCTOR STOCKS HAVE ALWAYS BEEN THE KIND OF LOWMARGIN COMMODITY PLAY THAT STOCK PICKERS ABHOR STIFF COMPETITION AND RAPID PRODUCT CYCLES SENT THESE STOCKS SAILING AND SWOOPING EVEN DURING THE STOCK MARKET'S SLOW SUMMERS IF TECH STOCKS WERE ON THEIR KNEES YOU COULD BET THAT CHIP STOCKS WERE LYING IN THE GUTTER HAS SOMETHING CHANGED YES SAYS RONALD SLOAN HEAD OF VERISSIMO RESEARCH A LARKSPUR CALIF INVESTMENT FIRM SOME MANAGEMENTS FINALLY HAVE A GRIP THEY'VE LEARNED TO DIVERSIFY PRODUCT LINES AND MANAGE INNOVATION SO NEW PRODUCTS ROLL OUT WITH BETTER TIMING HE SAYS THE CHIP STOCKS' SUMMER STRENGTH POINTS TO A SHIFT IN VALUE INSIDE THE COMPUTER SAYS THOMAS THORNHILL III MANAGING DIRECTOR AT SAN FRANCISCO'S MONTGOMERY SECURITIES ENGINEERS USED TO PUT SEVERAL SIMPLE CHIPS ON A BOARD NOW SEVERAL COMPLEX FUNCTIONS ARE PACKAGED INSIDE SINGLE CHIPS THESE VERY COMPLEX SEMICONDUCTOR DEVICES ARE DAMN NEAR A COMPUTING SYSTEM MR THORNHILL SAYS SO CHIPS TODAY OFTEN DEFINE THE FEATURES AND PERFORMANCE OF A COMPUTER ASK PEOPLE WHAT KIND OF COMPUTER THEY HAVE AND THEY MIGHT SAY I HAVE A 486 THE NAME OF INTEL'S POWERFUL MICROPROCESSOR THIS YEAR'S PERSONALCOMPUTER PRICE WARS WHICH HAVE WIPED OUT STOCKS SUCH AS APPLE COMPUTER OFF 58 FROM ITS 52WEEK HIGH AND DELL COMPUTER OFF 60 HAVE STIMULATED DEMAND FOR BOTH PERSONAL COMPUTERS AND THE CHIPS THAT RUN THEM SEMICONDUCTOR CONSUMPTION IN THE US IS UP 40 OVER LAST YEAR'S RATE WORLDWIDE CONSUMPTION SHOULD BE UP 20 THIS YEAR MONTGOMERY SAYS CHIP COMPANIES ARE ALSO BENEFITING FROM NEW GRAPHIC AND AUDIO MULTIMEDIA APPLICATIONS AND THE MOVE TOWARD LAPTOP AND HANDHELD COMPUTERS THE PC HARDWARE GUYS YOU MIGHT AS WELL BE BUYING SHOES OR SOMETHING THEY'RE COMMODITY PRODUCTS NOW MR SLOAN SAYS BUT IN THE CHIP BUSINESS WE'RE IN A RICH NEW PRODUCT CYCLE INVESTORS HAVE RECOGNIZED THE CHANGE AND PUSHED UP SOME CHIP STOCKS TEXAS INSTRUMENTS IS UP 52 THIS YEAR NATIONAL SEMICONDUCTOR IS UP 53 AND XILINX HAS JUMPED 59 THE BIG GAINS DO GIVE MR SLOAN PAUSE HE'S DIVERSIFYING AND TAKING SOME PROFITS IN XILINX A ONETIME MAJOR HOLDING SOME WORRY THAT THE SEMICONDUCTOR STOCKS COULD SWOON IF PC INVENTORIES DON'T THIN OUT MORE THIS SUMMER BUT THERE CLEARLY ARE A FEW PLAYS LEFT KAREN PAYNE WHO WATCHES CHIP STOCKS AT PACIFIC EDGE A SAN FRANCISCO INVESTMENT FIRM SAYS INVESTORS MIGHT WANT TO TAKE A CONTRARIAN STAND BY BUYING ADVANCED MICRO DEVICES EVEN THOUGH THREE BROKERAGE FIRMS HAVE ALREADY RECOMMENDED THE SUNNYVALE CALIF CHIP MAKER'S STOCK IN THE PAST MONTH IT HAS BARELY BUDGED AT 23 7/8 THE STOCK TRADES AT ONLY 87 TIMES 1993 ESTIMATED EARNINGS INVESTORS HAVE ROUTINELY STAYED AWAY FROM AMD AS AN INTEL CLONER THE STOCK'S DISCOUNTED MULTIPLE ALSO REFLECTS CONCERNS OVER INTEL'S COPYRIGHT BATTLE WITH AMD WALL STREET IS OBSESSED WITH AMD'S MICROPROCESSOR BUSINESS MS PAYNE SAYS SPEAKING OF THE COMPANY'S 386 AND 486 CHIPS BUT THIS IS A LEADINGEDGE COMPANY THAT HAS SEEN NO SLOWING IN DEMAND IN PRODUCTS ASIDE FROM MICROPROCESSORS SHE SAYS THOSE PRODUCTS ARE PROGRAMMABLE LOGIC CHIPS FOR SPECIALIZED FUNCTIONS AND MEMORY AND NETWORKING CHIPS AMD'S NONMICROPROCESSOR SALES WILL BE OVER 1 BILLION THIS YEAR MS PAYNE PREDICTS OR MORE THAN MICROPROCESSOR SALES THIS YEAR'S ESTIMATES OF 270 TO 280 A SHARE ARE BEATABLE SHE SAYS ADDING THEY CAN SELL EVERYTHING THEY MAKE IN THE NEXT 12 TO 18 MONTHS WHAT ABOUT THE LITIGATION IT IS DEFINITELY A WILD CARD BUT I WOULD SAY THE STOCK IS OVERDISCOUNTED BECAUSE OF THE THREAT MR THORNHILL THE MONTGOMERY ANALYST SAYS LSI LOGIC IS CHEAP RELATIVE TO POTENTIAL EARNINGS HE ESTIMATES THE COMPANY CAN EARN 110 A SHARE IN 1993 ON SALES OF 726 MILLION AND 156 FOR 1994 ON SALES OF 833 MILLION AT 16 1/2 THE STOCK TRADES AT 15 TIMES THIS YEAR'S ESTIMATED EARNINGS NOT BAD GIVEN THE PROJECTED EARNINGS GROWTH OF MORE THAN 40 FOR 1994 THE MILPITAS CALIF COMPANY MAKES CUSTOM LOGIC CHIPS FOUND IN EVERYTHING FROM SONY VIDEO CAMERAS TO SUN MICROSYSTEMS AND SILICON GRAPHICS WORKSTATIONS MR THORNHILL ENVISIONS LSI CASHING IN ON THE MOVE TOWARD SMALL SYSTEMS SUCH AS HANDHELD DEVICES LSI'S CHIPS TYPICALLY WILL REPLACE MULTIPLES OF OTHER PARTS LOWER COSTS TO MANUFACTURERS AND INCREASE PERFORMANCE HE SAYS MORE PERFORMANCE LESS SIZE HEARD 9308020040 930802 BUSINESS BRIEF LAND & GENERAL BHD NET INCOME NEARLY DOUBLED IN THE FIRST SIX MONTHS MALAYSIA'S LAND & GENERAL BHD REPORTED A 95 JUMP IN NET INCOME FOR THE FIRST HALF WHICH IT ATTRIBUTED IN PART TO THE STRONG PERFORMANCE OF A FINANCIALSERVICES COMPANY IN WHICH IT HOLDS A STAKE EARNINGS ROSE TO 366 MILLION RINGGIT 143 MILLION FROM YEAREARLIER 188 MILLION RINGGIT ON REVENUE OF 261 MILLION RINGGIT UP 28 FROM 204 MILLION RINGGIT A YEAR EARLIER LAND & GENERAL A PROPERTY MANUFACTURING AND TIMBER GROUP CITED THE STRONG CONTRIBUTION OF RASHID HUSSAIN BHD A BROKERAGE AND FINANCIALSERVICES GROUP THAT RECENTLY RELEASED SHARPLY HIGHER EARNINGS LAND & GENERAL REDUCED ITS STAKE IN RASHID TO 20 FROM 25 IN THE PERIOD FOR A ONETIME GAIN OF 156 MILLION RINGGIT THE GROUP'S TIMBER ACTIVITIES WERE ALSO STRONG THE COMPANY SAID AS PRICES REBOUNDED DURING THE PERIOD LAND & GENERAL SAID IT EXPECTS SIMILAR PERFORMANCE FOR THE BALANCE OF THE YEAR 9308020039 930802 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT DAYTON HUDSON CORP 100 MILLION OF DEBENTURES DUE AUG 1 2023 PRICED AT PAR TO YIELD 765 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 109 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF DEBENTURES DUE SEPT 5 1994 TO BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WILL FLOAT WEEKLY 125 BASIS POINTS ABOVE THE THREEMONTH TREASURY BILL FOR THE FIRST SIX MONTHS THEREAFTER THE DEBENTURES WILL HAVE A FIXED RATE OF 347 UNTIL MATURITY THE THREEMONTH TREASURY BILL IS CURRENTLY 303 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1078 MILLION OF FLOATINGRATE SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SWAP TRUST 3 IS BACKED BY A CLASS FROM THE AGENCY'S REMIC SERIES 1993168 WHICH WAS BACKED BY 7 30YEAR MORTGAGE SECURITIES AS WELL AS AN INTERESTRATE SWAP WACHOVIA BANK & TRUST CO 175 MILLION OF BANK NOTES DUE AUG 7 1995 PRICED AT PAR TO YIELD 43 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 17 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS WACHOVIA BANK & TRUST IS A UNIT OF FIRST WACHOVIA CORP MEDIPLEX GROUP INC 275 MILLION COMMON SHARES PRICED AT 25125 APIECE THROUGH UNDERWRITERS LED BY COUNTY NATWEST DEAN WITTER AND PAINEWEBBER FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1580 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 5344 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993 168 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 356 MONTHS GOLDMAN SACHS & CO US 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE AUG 25 2003 AT ISSUE AND REOFFER PRICE 99625 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY FLAT AT SIXMONTH LONDON INTERBANK OFFERED RATE SUBJECT TO MINIMUM COUPON 5375 AND MAXIMUM 9 FEES 05 POINT ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 150 BILLION ITALIAN LIRE OF 10 EUROBONDS DUE AUG 24 2000 AT ISSUE PRICE 101875 VIA JP MORGAN SIM SPA BONDS YIELD 10 AT PAR BREAKEVEN PRICE FOR COMANAGERS CALLABLE FROM 1995 INTEREST PAYMENT DATE AT PAR AND ANNUALLY THEREAFTER GUARANTOR ABBEY NATIONAL PLC FEES 1875 POINTS GREAT BELT AS DENMARK 500 MILLION DANISH KRONER OF 7 EUROBONDS DUE SEPT 2 2003 AT ISSUE PRICE 10210 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 100425 TO YIELD 694 GUARANTOR KINGDOM OF DENMARK FEES TWO POINTS MITSUI & CO INC USBASED JAPANESE PARENT FIVE BILLION YEN OF 39 EUROBONDS DUE NOV 29 1996 AT ISSUE AND REOFFER PRICE 10035 VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 3779 KEEPWELL AGREEMENT WITH MITSUI & CO FEES 035 POINT 9308020038 930802 BUSINESS BRIEF SEVEN NETWORK LTD AUSTRALIAN COMPANY CLOSES OVERSUBSCRIBED STOCK OFFER SEVEN NETWORK LTD AN AUSTRALIAN TELEVISION BROADCASTER SAID IT HAS CLOSED ITS PUBLIC OFFERING OF SHARES EARLY BECAUSE IT IS OVERSUBSCRIBED EARLIER IN JULY SEVEN NETWORK SAID IT PLANNED TO RAISE 611 MILLION AUSTRALIAN DOLLARS US4154 MILLION THROUGH AN ISSUE OF 3055 MILLION SHARES AT A2 A SHARE THE COMPANY SAID FRIDAY THAT RUPERT MURDOCH'S NEWS CORP AND TELSTRA CORP AN AUSTRALIAN GOVERNMENTOWNED TELECOMMUNICATIONS GROUP HAVE BEEN ALLOCATED 15 AND 10 OF THE STOCK RESPECTIVELY TOTALING ABOUT A150 MILLION OF THE REMAINING A450 MILLION IT IS INTENDED TO MAKE APPROXIMATELY A160 MILLION OR 35 AVAILABLE TO THE GENERAL PUBLIC THROUGH THE RETAIL BROKING NETWORK AND DIRECT APPLICATIONS FROM THE PUBLIC THE COMPANY SAID 9308020037 930802 CREDIT RATINGS ALCO STANDARD CORP VALLEY FORGE PA STANDARD & POOR'S CORP SAID IT AFFIRMED ITS SINGLEA RATING ON SENIOR DEBT THIS DISTRIBUTOR OF PAPER AND OFFICE PRODUCTS AND OTHER RATINGS BUT THAT THE OUTLOOK IS NEGATIVE ALCO HAS ABOUT 350 MILLION OF DEBT AND PREFERRED STOCK OUTSTANDING S&P REMOVED ALCO FROM ITS CREDITWATCH LIST AND SAID IT EXPECTS ALCO WILL BE ABLE TO COMPLETE A POSTPONED SALE OF ABOUT 200 MILLION OF COMMON STOCK WITH PROCEEDS GOING TO REDUCE DEBT ALCO HAS A SUCCESSFUL RECORD OF IMPROVING OPERATING EFFICIENCIES AND EARNED RETURNS AT ACQUIRED COMPANIES THE SIZE OF PROSPECTIVE ACQUISITIONS IN THE INTERMEDIATE TERM SHOULD SEE SOME MODERATION S&P SAID 9308020036 930802 BUSINESS BRIEF NAMCO LTD VIDEO GAME MAKER NEARS DECISION ON NIKKATSU RESCUE NAMCO LTD IS NEARING A DECISION TO RESCUE FINANCIALLY TROUBLED MOVIE MAKER NIKKATSU CORP AN OFFICIAL OF THE JAPANESE VIDEO GAME CONCERN SAID NIKKATSU WHICH IN JUNE SOUGHT COURT PERMISSION TO OPEN NEGOTIATIONS WITH CREDITORS FACES LIQUIDATION SHOULD THE MOVE FAIL TO YIELD RESULTS THE NAMCO OFFICIAL SAID ITS AID LIKELY WOULD AMOUNT TO ABOUT 10 BILLION YEN 943 MILLION NAMCO WHICH MAKES ARCADESTYLE VIDEO GAMES SEES THE MATCH PROVIDING IT WITH HUMAN RESOURCES AND TECHNOLOGY IN THE VIDEO IMAGING FIELD HE SAID NIKKATSU OFFICIALS SAID ONLY THAT THEY HAVE APPROACHED A NUMBER OF COMPANIES ASKING FOR SPONSORSHIP AND ASSISTANCE IN RESTRUCTURING THEY DECLINED TO IDENTIFY THE FIRMS OR PROVIDE FURTHER DETAILS THE COURT HAS SET AN AUG 31 DEADLINE FOR NIKKATSU TO REACH AN AGREEMENT WITH ITS CREDITORS OR FACE DISSOLUTION THE NAMCO OFFICIAL SAID HIS COMPANY WOULD MAKE AN OFFICIAL OFFER BEFORE THEN NIKKATSU'S DEBT IS ROUGHLY 50 BILLION YEN 9308020035 930802 INTERNATIONAL JAPANESE COMPANIES SETTLE NAVY BIDRIGGING CASES SPECIAL TO THE WALL STREET JOURNAL WASHINGTON TWENTYSEVEN JAPANESE CONSTRUCTION COMPANIES HAVE PAID THE US MORE THAN 1 MILLION TO SETTLE CLAIMS OF RIGGING BIDS ON CONTRACTS AT THE US NAVAL BASE AT SASEBO JAPAN DURING THE 1980S THE US JUSTICE DEPARTMENT SAID THIS CASE REAFFIRMS OUR COMMITMENT TO PURSUE BID RIGGERS AND THOSE WHO CONSPIRE TO DEFRAUD THE US GOVERNMENT WHEREVER THEY ARE LOCATED ASSISTANT ATTORNEY GENERAL FRANK HUNGER OF THE CIVIL DIVISION SAID THE NAVY HAD REQUESTED COMPETITIVE BIDS ON CONTRACTS FOR CONSTRUCTION PROJECTS AT THE BASE ON THE ISLAND OF KYUSHU NEAR NAGASAKI HOWEVER THE NAVAL INVESTIGATIVE SERVICE FOUND THE COMPANIES HAD RIGGED THEIR BIDS TO MANIPULATE AND INCREASE THE CONTRACT PRICES THE DIVISION HAS RECOVERED ABOUT 72 MILLION FROM SETTLEMENTS INVOLVING BIDRIGGING CASES IN JAPAN SINCE THE END OF 1989 THE DEPARTMENT SAID SOME COMPANIES DENIED BIDRIGGING BUT SAID THEY SETTLED TO AVOID A COSTLY LEGAL DISPUTE 9308020034 930802 COMMODITIES MIDWEST FORECASTS FOR SUN DRY UP CBOT'S BULL MARKET BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WITH SUN SHINING ACROSS THE MIDWEST AND CROP PROSPECTS IMPROVING THE CHICAGO BOARD OF TRADE'S FIRST FLOODRELATED BULL MARKET IN DECADES APPEARS TO BE FINISHED DRENCHING RAINS IN IOWA AND OTHER MIDWEST STATES SPAWNED A RALLY THAT ELECTRIFIED GRAIN MARKETS IN JUNE AND EARLY JULY ESPECIALLY THE BOARD OF TRADE'S BUSTLING SOYBEAN FUTURES PIT BUT SOYBEAN PRICES HAVE COLLAPSED IN THE PAST WEEK WITH RETREATS IN FIVE OF THE PAST SIX TRADING SESSIONS AND NOW GRAIN TRADERS SAY ONLY BLISTERING HEAT WHICH MIGHT DAMAGE STUNTED SOYBEAN PLANTS IN THE WESTERN CORN BELT COULD BRING STRENGTH BACK TO THE MARKET THE ONLY THING THAT WOULD REALLY GET THE MARKET GOING AGAIN IS IF WE ALL OF A SUDDEN STRUNG TOGETHER A BUNCH OF 90TO100 DEGREE DAYS SAYS TOM O'ROURKE A SOYBEAN FUTURES BROKER ON THE CBOT TRADING FLOOR BUT THAT'S NOT IN THE FORECAST SINCE JULY 19 WHEN THE PRICE OF THE ACTIVELY TRADED NOVEMBER SOYBEAN FUTURES CONTRACT PEAKED AT 7575 A BUSHEL THE PRICE HAS TUMBLED 10 TO 687 A BUSHEL MEANWHILE THE BENCHMARK DECEMBER CORN CONTRACT HAS PLUMMETED 8 TO 2415 A BUSHEL FROM 261 A BUSHEL ON JULY 9 AHEAD THE WANING PRICES REFLECT THE FACT THAT ALTHOUGH FLOODING WASHED OUT MANY LOWLYING FARMS IN IOWA KANSAS AND OTHER WESTERN CORN BELT STATES CROPS ARE IN GREAT SHAPE ELSEWHERE MANY FARMERS IN ILLINOIS AND INDIANA FOR INSTANCE ARE EXPECTING RECORD SOYBEAN AND CORN YIELDS AND EVEN IN WATERLOGGED IOWA FARMERS COULD SALVAGE AN AVERAGE CROP IF THE WEATHER REMAINS SUNNY AND MILD SOME FIELDS WERE LOST BECAUSE OF FLOODING BUT A MAJORITY OF THE FIELDS WERE NOT SAYS JIM CANDOR ASSISTANT VICE PRESIDENT AT ACCUWEATHER INC A PRIVATE FORECASTING SERVICE TO WHICH MANY GRAIN TRADERS SUBSCRIBE THE MISCONCEPTION WAS THAT ALL OF IOWA WAS UNDER WATER AND THAT'S JUST NOT THE CASE THEY COULD STILL HAVE AVERAGE YIELDS OR BETTER IN AREAS WHERE THE CROP WASN'T DESTROYED WEATHER FORECASTS CALL FOR LITTLE RAIN PLENTY OF SUNSHINE AND LOWERTHANNORMAL TEMPERATURES THIS WEEK FOR MOST OF THE GREAT PLAINS AND THE CORN BELT IN OTHER WORDS IDEAL GROWING CONDITIONS FORECASTERS SAY A HIGHPRESSURE RIDGE THAT FORMED OVER THE SOUTHEASTERN US HAS MOVED WEST AND ITS PRESENCE IS NOW PREVENTING STORM SYSTEMS FROM SWEEPING ACROSS THE CORN BELT THE DRIER FORECASTS ARE ANATHEMA TO A BULL MARKET FOUNDED ON FLOODING TRADERS HAVE REACTED TO THE IMPROVING WEATHER BY BIDDING DOWN PRICES MUCH AS THEY WOULD IF HEAVY RAINS FELL AFTER AN EARLYSUMMER DROUGHT JERRY TOEPKE AN ANALYST AT THE MOORE RESEARCH CENTER IN EUGENE ORE WHICH USES STATISTICS TO TRACK COMMODITY PRICES SAYS THE BEHAVIOR OF THIS SUMMER'S GRAIN MARKET HAS BEEN VERY SIMILAR TO SUCH RECENT DROUGHT YEARS AS 1988 AND 1983 IN THESE CROPDAMAGE YEARS YOU RALLY STRONGLY IN JUNE AND EARLY JULY THEN YOU GET A HARD SELLOFF INTO THE FIRST PART OF AUGUST MR TOEPKE SAYS ALSO DRIVING THE MARKET LOWER IS HEAVY SELLING BY COMMODITY FUNDS WHICH ARE POOLS OF INVESTORS' MONEY WHOSE MANAGERS IGNORE WEATHER AND TRADE INSTEAD ON THE BASIS OF THEIR OWN MATHEMATICAL PROJECTIONS FOR THIS REASON THEY ARE CALLED TECHNICAL TRADERS FOR SUCH FUNDS THE KEY LEVEL FOR THE NOVEMBER SOYBEAN FUTURES CONTRACT IS ABOUT 660 A BUSHEL THE HIGHEST PRICE AT WHICH THE CONTRACT TRADED FOR THE THREE YEARS BEFORE THIS YEAR'S BULL MARKET TECHNICAL TRADERS CALL THIS THE BREAKOUT LEVEL OF THE CONTRACT WHEN AND IF THE NOVEMBER CONTRACT REACHES THE 660ABUSHEL LEVEL IT IS LIKELY TO FIND SUPPORT AS COMMODITY FUNDS BUY FUTURES CONTRACTS IN WAGERS THAT PRICES WILL BEGIN TO RISE AGAIN ANALYSTS SAY UNTIL IT DOES HOWEVER THE FUNDS ARE LIKELY TO CONTINUE TO SELL ALTHOUGH MOST TRADERS CONCEDE THAT THE BULL MARKET OF 1993 IS OVER MANY THINK PRICES COULD RISE LESS DRAMATICALLY IN LATE AUGUST AND EARLY SEPTEMBER DURING THESE LATESUMMER WEEKS SOYBEAN FUTURES TRADERS WATCH WEATHER FORECASTS CLOSELY FOR SIGNS OF EXCESSIVE HEAT OR EARLY FROST AUGUST IS THE PERIOD WHEN SOYBEAN PODS DEVELOP INTENSE HEAT CAN INTERFERE WITH THIS PROCESS AND REDUCE YIELDS AND AN EARLY FROST CAN ABRUPTLY HALT DEVELOPMENT OF SOYBEAN PLANTS ALSO CURTAILING YIELDS ANY SIGN OF REALLY HOT WEATHER LIKE YOU USUALLY GET IN LATE AUGUST WOULD KICK THE MARKET UP A BIT SAYS JOHN MCHONE VETERAN CBOT FLOOR TRADER FOR AG EDWARDS & CO BECAUSE OF THE FLOODING THE SOYBEAN PLANTS DON'T HAVE A WELLDEVELOPED ROOT SYSTEM IF WE DID HAVE A PROLONGED HEAT SPELL THESE PLANTS WOULD START TO FAIL BECAUSE THEY COULD NOT REACH WATER ALL TRADERS ARE AWAITING THE US AGRICULTURE DEPARTMENT'S AUG 11 REPORT ON CROP PRODUCTION AND YIELDS WHICH WILL CONTAIN THE GOVERNMENT'S BEST ESTIMATE OF HOW BADLY THE FLOODING HAS DAMAGED THE CROP I WOULD SAY THAT THE WEATHER RIGHT NOW HAS GOT THE MARKETS ON HOLD UNTIL THE AUG 11 REPORT WHICH WILL GIVE US SOME FIGURES ON WHAT THE FARMERS HAVE ACTUALLY LOST MR MCHONE SAYS BETWEEN NOW AND THEN ANALYSTS SAY PRICES ARE LIKELY TO CONTINUE TO TRICKLE LOWER ONE FACTOR LIKELY TO PUSH PRICES DOWN IN THE SHORT TERM IS THE PROBABLE REOPENING OF THE MISSISSIPPI RIVER TO BARGE TRAFFIC THE MISSISSIPPI IS THE THOROUGHFARE ON WHICH GRAIN IS TRANSPORTED TO THE GULF OF MEXICO WHERE IT IS LOADED ONTO SHIPS THAT WILL DELIVER IT TO FOREIGN BUYERS IN LATE JUNE FLOODING CLOSED THE MISSISSIPPI AND CAUSED GRAIN STOCKS TO DWINDLE IN WAREHOUSES AT THE GULF REOPENING THE RIVER WILL PRESSURE PRICES LOWER AS THE MARKET ANTICIPATES HAVING A GLUT OF GRAIN AT THE GULF MR TOEPKE SAYS 9308020033 930802 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COBRA GOLF INC AN INITIAL OFFERING OF 3250000 COMMON SHARES VIA LEHMAN BROTHERS AND AG EDWARDS & SONS HEALTH CARE PROPERTY INVESTORS INC A SHELF OFFERING OF UP TO 200 MILLION OF DEBT SECURITIES PREFERRED AND COMMON STOCK VIA MERRILL LYNCH & CO REGENERON PHARMACEUTICALS INC AN OFFERING OF 26 MILLION COMMON SHARES VIA DILLON READ & CO LEHMAN BROTHERS AND MONTGOMERY SECURITIES SPI HOLDING INC AN OFFERING OF 75 MILLION CLASS B COMMON SHARES AND 150 MILLION OF SENIOR DISCOUNT NOTES DUE 2001 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP MERRILL LYNCH AND CHEMICAL SECURITIES INC FOR THE NOTES OFFER AND DONALDSON LUFKIN AND MERRILL LYNCH FOR THE STOCK OFFERING 9308020032 930802 BUSINESS BRIEF RALSTON PURINA CO SHAREHOLDERS APPROVE PLAN FOR CONTINENTAL BAKING CO RALSTON PURINA CO ST LOUIS SAID ITS SHAREHOLDERS APPROVED THE COMPANY'S PROPOSAL TO CREATE A SEPARATE STOCK FOR CONTINENTAL BAKING CO THE REMAINING RALSTON BUSINESSES WILL BE ORGANIZED INTO THE RALSTON PURINA GROUP CURRENT SHARES OF RALSTON COMMON STOCK WILL BE CHANGED INTO SHARES OF RALSTON PURINA GROUP 9308020031 930802 BUSINESS BRIEF HICOM BHD FISCALYEAR NET FELL 13 LARGELY DUE TO DIVESTMENT MALAYSIA'S HICOM BHD A GOVERNMENT INDUSTRIAL CONCERN REPORTED A 13 DECLINE IN NET INCOME FOR ITS FISCAL YEAR SAYING IT WAS HURT BY THE SALE OF PART OF ITS STAKE IN NATIONAL CAR MAKER PERUSAHAAN OTOMOBIL NASIONAL LTD FOR THE YEAR ENDED MARCH 31 NET FELL TO 146 MILLION RINGGIT 569 MILLION FROM A YEAREARLIER 168 MILLION RINGGIT REVENUE GREW 16 TO 142 BILLION RINGGIT 5537 MILLION FROM 122 BILLION RINGGIT EARNINGS WERE HURT IN THE FISCAL YEAR DUE TO THE DIMINISHED CONTRIBUTION OF THE AUTO MAKER IN WHICH HICOM REDUCED ITS STAKE TO 28 FROM 45 IN THE PREVIOUS YEAR OTHER OPERATIONS HOWEVER REPORTED GENERALLY STRONGER PROFITS THE COMPANY SAID HICOM IS AWAITING REGULATORY APPROVAL FOR A PROPOSAL TO OBTAIN A LISTING ON KUALA LUMPUR'S STOCK EXCHANGE THE GROUP HAS ALSO ANNOUNCED PLANS TO PARTICIPATE IN A PROPOSED SECOND NATIONAL AIRLINE 9308020030 930802 FIRST INTERSTATE BANK OF CALIFORNIA HONG KONG THE HONG KONG GOVERNMENT SAID IT REVOKED THE BANKING LICENSE OF FIRST INTERSTATE BANK OF CALIFORNIA AT THE BANK'S REQUEST THE US BANK SOLD ITS HONG KONG BANKING OPERATIONS TO STANDARD CHARTERED BANK IN MAY 1992 AND HASN'T CONDUCTED BANKING BUSINESS IN THE COLONY SINCE JANUARY ACCORDING TO A GOVERNMENT ANNOUNCEMENT FRIDAY HONG KONG CURRENTLY HAS 168 LICENSED BANKS OF WHICH 136 ARE INCORPORATED OUTSIDE THE COLONY 9308020029 930802 INTERNATIONAL BRIEF BRIDGESTONE CORP TIRE MAKER'S PARENT PROFIT PLUNGED 52 IN FIRST HALF JAPANESE TIRE MAKER BRIDGESTONE CORP REPORTED A 52 DROP IN FIRSTHALF UNCONSOLIDATED PRETAX PROFIT CITING WEAK DOMESTIC DEMAND AND THE YEN'S APPRECIATION BRIDGESTONE'S PROFIT PLUMMETED TO 1376 BILLION YEN 1292 MILLION FROM 2891 BILLION YEN A YEAR EARLIER SALES FELL 11 TO 30419 BILLION FROM 34295 BILLION YEN ALSO BRIDGESTONE REVISED DOWNWARD ITS FORECAST FOR CONSOLIDATED EARNINGS FOR THE YEAR THE COMPANY NOW EXPECTS CONSOLIDATED PRETAX PROFIT OF 50 BILLION YEN COMPARED WITH A FORECAST OF 80 BILLION YEN FIRSTHALF DOMESTIC SALES DECLINED 12 TO 22313 BILLION YEN AS SALES OF NEW TIRES WEAKENED AMID A 77 DROP IN VEHICLE PRODUCTION IN ADDITION DEMAND FOR REPLACEMENT TIRES FELL SHARPLY ESPECIALLY FOR TRUCKS AND BUSES BRIDGESTONE SAID 9308020028 930802 BUSINESS BRIEF LIFETIME CORP HOLDERS APPROVE ACQUISITION BY OLSTEN FOR 450 MILLION LIFETIME CORP BOSTON SAID ITS SHAREHOLDERS APPROVED LIFETIME'S ANNOUNCED ACQUISITION BY OLSTEN CORP FOR ABOUT 450 MILLION IN STOCK THE TRANSACTION IS VALUED AT ABOUT 600 MILLION INCLUDING ASSUMPTION OF DEBT THE COMBINATION OF THE TWO TEMPORARY HELP AND HEALTH SERVICES COMPANIES WOULD HAVE SALES OF ABOUT 22 BILLION IN 1993 OLSTEN SAID BASED ON OLSTEN'S CLOSING STOCK PRICE OF 26375 ON THURSDAY LIFETIME SHAREHOLDERS WILL RECEIVE THE EQUIVALENT OF 3349 IN OLSTEN STOCK FOR EACH OF THEIR LIFETIME SHARES LIFETIME SAID OLSTEN BASED IN WESTBURY NY AGREED TO ACQUIRE LIFETIME IN MAY AFTER ABBEY HEALTHCARE GROUP COSTA MESA CALIF BID FOR LIFETIME AND THREATENED A PROXY FIGHT TO REPLACE ITS CHAIRMAN AN OLSTEN REPRESENTATIVE SAID LIFETIME'S KIMBERLY QUALITY CARE UNIT WILL OPERATE INDEPENDENTLY AT LEAST UNTIL THE END OF THE YEAR 9308020027 930802 BUSINESS BRIEF GLENFED INC DEBTFOREQUITY DEADLINE IS PUSHED BACK TO AUG 17 GLENFED INC PUSHED BACK TO AUG 17 THE EXPIRATION DATE OF A PROPOSED DEBTFOREQUITY SWAP THAT'S A KEY PART OF THE TROUBLED THRIFT CONCERN'S PLAN TO RAISE CAPITAL AND STAY AFLOAT THE EXCHANGE OFFER WHICH COVERS GLENFED'S 775 CONVERTIBLE SUBORDINATED DEBT WAS TO HAVE EXPIRED WEDNESDAY GLENFED GLENDALE CALIF ALSO EXTENDED TO AUG 17 THE EXPIRATION DATE OF ITS CONSENT SOLICITATION FOR A PLANNED RECLASSIFICATION OF ITS GLENDALE FEDERAL BANK UNIT'S SERIES B AND SERIES C PREFERRED STOCK GLENFED DECLINED TO SAY WHY IT EXTENDED THE EXPIRATION DATES THE TWO MOVES ARE VITAL PARTS OF GLENFED'S PLAN TO RAISE AS MUCH AS 425 MILLION IN CAPITAL GLENFED ALSO SAID IT POSTPONED A SPECIAL SHAREHOLDERS' MEETING RELATED TO THE RECAPITALIZATION TO AUG 17 IT WAS TO HAVE TAKEN PLACE TOMORROW IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE GLENFED CLOSED UNCHANGED AT 9375 CENTS 9308020026 930802 MUNICIPALBOND ISSUANCE OFFICIALS SHOW IRE OVER CALL FOR NEW DISCLOSURE RULES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT FINANCE OFFICERS ASSOCIATION DENOUNCED AS OUTRAGEOUS A BOND TRADE GROUP'S CALL FOR THE SECURITIES AND EXCHANGE COMMISSION TO MANDATE GREATER DISCLOSURE BY ISSUERS OF MUNICIPAL BONDS THE PUBLIC SECURITIES ASSOCIATION THE BOND TRADE GROUP RECENTLY RECOMMENDED THAT THE SEC ADOPT RULES REQUIRING STATE AND LOCAL BOND ISSUERS TO DISCLOSE MATTERS MATERIAL TO THE PERFORMANCE OF THEIR BONDS IN THE SECONDARY MARKET IN LETTERS TO PSA BOARD MEMBERS JEFFREY ESSER EXECUTIVE DIRECTOR OF THE GFOA A GROUP OF STATE AND LOCAL GOVERNMENT FINANCE OFFICIALS SAID WE CANNOT UNDERSTAND HOW AN ORGANIZATION THAT HAS FOUGHT AGAINST FEDERAL INTERVENTION IN THE TAXEXEMPT BOND ISSUANCE PROCESS COULD NOW URGE BOTH THE CONGRESS AND THE SECURITIES AND EXCHANGE COMMISSION TO REGULATE STATE AND LOCAL GOVERNMENT SECURITIES BUT SEC COMMISSIONER RICHARD ROBERTS IN AN INTERVIEW SAID I FIND THE FINANCE OFFICERS' OPPOSITION A LITTLE DISAPPOINTING AND HARD TO UNDERSTAND THEY'D BENEFIT FROM A MORE EFFICIENT SECONDARY MARKET AND THEY'D GET ONE FROM SOME MINIMAL DISCLOSURE STANDARDS THE SEC IS REVIEWING THE ADEQUACY OF MUNICIPAL BOND MARKET DISCLOSURE AND THE INFLUENCE OF POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS ON THE SELECTION OF MUNICIPAL BOND UNDERWRITERS THE AGENCY WILL REPORT ITS FINDINGS AND RECOMMENDATIONS TO CONGRESS IN ABOUT A MONTH ARTHUR LEVITT JR THE AGENCY'S NEW CHAIRMAN SAID RECENTLY THAT THE SEC HAS LONG BEEN CONCERNED WITH IMPROVING DISCLOSURE IN THE MUNICIPAL SECURITIES MARKET THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT WEDNESDAY WILL UNVEIL PROPOSED REGULATORY INITIATIVES IN BOTH THE POLITICAL CONTRIBUTIONS AND SECONDARY MARKET DISCLOSURE AREAS SAID MSRB EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR WHO DECLINED TO DISCUSS THE PROPOSALS UNTIL THEN THE PSA WHOSE MEMBERS INCLUDE VIRTUALLY ALL THE NATION'S LEADING MUNICIPAL BOND UNDERWRITERS ALSO URGED THE SEC TO PROMULGATE RULES REQUIRING PUBLIC OFFICIALS WHO ISSUE MUNICIPAL BONDS TO DISCLOSE THE POLITICAL CAMPAIGN CONTRIBUTIONS THEY HAVE RECEIVED THE FINANCE OFFICERS ACCUSED THE BOND TRADE GROUP OF ABANDONING ITS LONGSTANDING SUPPORT OF EFFORTS TO ENCOURAGE VOLUNTARY DISCLOSURE IN THE MUNICIPAL BOND MARKET THE FINANCE OFFICERS WHO TRADITIONALLY SPEARHEAD STATE AND LOCAL EFFORTS ON MUNICIPAL BOND REGULATORY AND LEGISLATIVE MATTERS INDICATED THEY WILL RESIST EFFORTS TO IMPOSE MANDATORY DISCLOSURE STANDARDS ON STATES AND LOCALITIES ARGUING THAT IT IS PREMATURE TO DECIDE VOLUNTARY EFFORTS AREN'T WORKING BUT THE BOND TRADE GROUP SAID IT RELUCTANTLY CONCLUDED VOLUNTARY DISCLOSURE EFFORTS AREN'T ENOUGH TO PROTECT INVESTORS AND ENSURE PUBLIC CONFIDENCE IN THE MARKET 9308020025 930802 BUSINESS BRIEF GENTRA INC UK MORTGAGE SALE TO RAISE MOST OF CASH FOR ROYAL BANK GENTRA INC TORONTO SAID IT SOLD 305 MILLION CANADIAN DOLLARS 2369 MILLION OF RESIDENTIAL MORTGAGE ASSETS IN THE UK RAISING MOST OF THE CASH IT NEEDS TO COMPLETE A PREVIOUS AGREEMENT WITH ROYAL BANK OF CANADA ROYAL BANK HAS AGREED TO PURCHASE VIRTUALLY ALL OF GENTRA'S OPERATING ASSETS FOR ABOUT C166 BILLION AS PART OF THE DEAL GENTRA PREVIOUSLY NAMED ROYAL TRUSTCO LTD ALSO AGREED TO BUY BACK CERTAIN ASSETS FROM THE BANK TO FUND THE REPURCHASE GENTRA SAID IT NEEDS TO SELL A TOTAL OF C394 MILLION OF ASSETS INCLUDING THE SALE OF THE C305 MILLION OF BRITISH MORTGAGES GENTRA A FINANCIAL SERVICES CONCERN SAID THE MORTGAGE PORTFOLIO WAS SOLD TO BIRMINGHAM MIDSHIRES A UK BUILDING SOCIETY WHICH IS SIMILAR TO A SAVINGS AND LOAN THE SALE PRICE WAS VERY CLOSE TO THE C305 MILLION BOOK VALUE OF THE MORTGAGES GENTRA SAID GENTRA SAID IT EXPECTS TO RAISE THE REST OF THE CASH NEEDED TO COMPLETE THE DEAL WITH ROYAL BANK BY SELLING ADDITIONAL UK RESIDENTIAL MORTGAGES AND BY COLLECTING ON CERTAIN LOANS THE ROYAL BANK TRANSACTION IS EXPECTED TO CLOSE IN SEPTEMBER 9308020023 930802 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE FACTIONALISM AMONG DEMOCRATS IS MAKING TASK OF NEGOTIATING BUDGET A TOUGH BALANCING ACT BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHENEVER REP TIM PENNY STARTS GETTING COMFORTABLE WITH PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM REP BERNIE SANDERS STARTS GETTING QUEASY MR PENNY A RELENTLESSLY EARNEST MINNESOTAN WHO HAS BECOME A LEADER AMONG DEMOCRATIC BUDGETCUTTERS HAS LOOKED FOR THE HOUSESENATE COMPROMISE TO DO MORE TO RESTRAIN SPENDING ON BENEFIT PROGRAMS BUT MR SANDERS A FEISTY SOCIALIST FROM VERMONT WORRIES THAT THE PACKAGE SPENT TOO LITTLE ON THE NEEDY TO BEGIN WITH WHEN CONFERENCECOMMITTEE NEGOTIATORS TILTED MODESTLY TOWARD MORE AUSTERITY LATE LAST WEEK MR SANDERS AND A DOZEN OTHER MEMBERS OF THE HOUSE PROGRESSIVE CAUCUS MARCHED INTO SPEAKER THOMAS FOLEY'S OFFICE TO COMPLAIN IF THE CONFERENCE SELLS OUT THE CHILDREN OF AMERICA THERE WILL BE A LOT OF US WHO WILL NOT BE SUPPORTING THIS PACKAGE WARNED MR SANDERS WHO'S OFFICIALLY AN INDEPENDENT BUT USUALLY SIDES WITH LIBERAL DEMOCRATS HE'S SCHEDULED TO TAKE THAT MESSAGE TO THE PRESIDENT AT A WHITE HOUSE MEETING THIS MORNING THE REASON DEMOCRATIC LEADERS HAVEN'T BEEN ABLE TO FILL IN FINAL DETAILS OF A COMPROMISE IS THAT THEY NEED BOTH MR PENNY'S AND MR SANDERS'S VOTE TO PRESERVE MR CLINTON'S PROGRAM AND WITH IT THE PRESIDENT'S POLITICAL VITALITY WITH NO HELP IN SIGHT FROM REPUBLICANS PROSPECTS FOR PASSAGE BY THE END OF THE WEEK REST ON DEMOCRATS' ABILITY TO HOLD TOGETHER WIDELY DISPARATE FACTIONS ON A PACKAGE EACH WANTS TO MAKE AN INKBLOT TEST OF THE PARTY'S IDENTITY IN THE AGE OF CLINTON THE TOUGHEST BATTLE IS EXPECTED TO BE IN THE SENATE WHERE AN EARLIER VERSION OF MR CLINTON'S PROGRAM SQUEAKED THROUGH ONLY AFTER VICE PRESIDENT AL GORE BROKE A 4949 TIE EVERY DEMOCRATIC SENATOR HOLDS A LOADED GUN WITH WHICH TO EXTRACT CONCESSIONS AS BUDGET DIRECTOR LEON PANETTA PUT IT RECENTLY BUT FIRST THE BILL MUST PASS THE HOUSE WHERE THE ODDS ARE ONLY SLIGHTLY BETTER IN THE HOUSE WHERE THE PRESIDENT'S INITIAL MARGIN WAS 219213 MEMBERS SEEK BARGAINING STRENGTH IN NUMBERS AND SO THE LEADERSHIP MUST HAGGLE TO ITS RIGHT WITH THE CONSERVATIVE DEMOCRATIC FORUM AND THE MAINSTREAM FORUM MR PENNY IS A MEMBER OF BOTH TO ITS LEFT WITH BLACK AND PROGRESSIVE CAUCUSES BUDGETCONSCIOUS FIRSTTERM DEMOCRATS SPEAK UP THROUGH THE FRESHMAN FISCAL CAUCUS DEMOCRATIC WOMEN PRESS THEIR OWN CONCERNS SCRAPING FOR INSURANCE AGAINST LATE DEFECTIONS THE LEADERSHIP ALSO COURTS THE 38 MEMBERS OF WHAT MIGHT BE CALLED THE NO CAUCUS DEMOCRATS WHO OPPOSED MR CLINTON'S PACKAGE WHEN IT FIRST PASSED THE HOUSE THESE ARE THE GROWING PAINS OF THE NEW DEMOCRATIC PARTY SAYS MR PENNY AND IT'S PAINFUL INDEED FOR THE WHITE HOUSE AND DEMOCRATIC LEADERS SKIRMISHING AMONG THESE FACTIONS HAS CLAIMED AS CASUALTIES MR CLINTON'S BROADBASED ENERGY TAX AND MUCH OF HIS PROPOSED INVESTMENTS NOW THE RANGE OF DIFFERENCES HAS SO NARROWED THAT MEMBERS ARE LEFT TO TURN SMALL DISPUTES TWO PENNIES A GALLON OF GASOLINE TAXES 2 BILLION OVER FIVE YEARS IN THE MASSIVE MEDICARE BUDGET INTO CLIMACTIC SHOWDOWNS OF SYMBOLISM AND SELFINTEREST MORE RESENTFUL THAN EVER OF THEIR PREENING SENATE COUNTERPARTS HOUSE DEMOCRATS HAVE TAKEN TO EMULATING THEM THEY CAN'T INDIVIDUALLY HOLD THE CLINTON PLAN HOSTAGE AS DOES OKLAHOMA SEN DAVID BOREN WHO ONCE HAILED THE PACKAGE BUT NOW DEMANDS MAJOR CHANGES TO SALVAGE THE FUTURE OF THE DEMOCRATIC PARTY BUT THEY CAN USE LOBBYING BLOCS SAYS MR PENNY TO MAKE US THE EQUIVALENT OF A SENATOR AND FORCE PARTY LEADERS TO PAY ATTENTION IN NONSTOP MEETINGS WITH MR PANETTA TREASURY SECRETARY LLOYD BENTSEN AND THE PRESIDENT HIMSELF DEFICIT HAWKS HAVE PRESSED THEIR DESIRE TO RESTRAIN THE GROWTH OF BENEFIT PROGRAMS BY FORCING CONGRESS TO TAKE A VOTE WHEN SPENDING EXCEEDS EXPECTATIONS A PROPOSAL TO DO SO ALREADY PASSED THE HOUSE BUT RAN INTO PARLIAMENTARY OBJECTIONS IN THE SENATE MR PENNY NOW SEIZES ON THE PRESIDENT'S PROMISE TO ISSUE AN EXECUTIVE ORDER ON THE SUBJECT AND ON HOUSE LEADERS' WILLINGNESS TO PURSUE THE DISPUTED PROVISION THROUGH OTHER MEANS AT THE SAME TIME HOUSE LIBERALS LATE LAST WEEK THREATENED TO DROP THEIR CONCILIATORY POSTURE ON THE NEWS THAT A SMALLER GASOLINE TAX INCREASE THAT SENATORS INSISTED ON WOULD TIGHTEN THE VISE ON SPENDING FOR MEDICARE FOOD STAMPS AND TAX CREDITS FOR POOR WORKERS WARNING OF VERY SERIOUS TROUBLE WITH THE TENTATIVE HOUSESENATE AGREEMENT THE BLACK CAUCUS CHAIRMAN MARYLAND DEMOCRAT KWEISI MFUME EVEN FLOATED ONE OF THE CONSERVATIVES' FAVORITE OPTIONS AN ACROSSTHEBOARD CUT IN ALL PROGRAMS TO PRESERVE SPENDING ON THOSE THE CAUCUS LIKES BEST SOME DEMOCRATIC FACTIONS HAVE KEPT A LOW PROFILE MOST OF US ARE MOTHERS AND WE DON'T APPRECIATE TANTRUMS SAYS REP PATRICIA SCHROEDER OF COLORADO A LEADER AMONG THE 36 HOUSE DEMOCRATIC WOMEN BUT THE WOMEN APPEAR TO HAVE GOTTEN WHAT THEY WANTED AS WELL REVIVAL OF A CAPITAL GAINS TAX BREAK FOR INVESTORS IN NEW SMALL BUSINESSES WHICH MS SCHROEDER SAYS WILL LIFT A RISING TIDE OF WOMEN ENTREPRENEURS THEY GOT CRUCIAL HELP FROM SEN DIANNE FEINSTEIN OF CALIFORNIA WHO HAS A PARTICULAR INTEREST IN THE ISSUE BECAUSE OF HER HIGHTECH CONSTITUENCY IN THE FINAL SPASM OF CONFLICTING DEMANDS DEMOCRATIC LEADERS HAVE TO BE VERY CAREFUL NOT TO LET CENTRIFUGAL FORCES TAKE OVER SAYS NORMAN ORNSTEIN A CONGRESSIONAL SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE AND A BARRAGE OF ATTACKS FROM ADMINISTRATION OPPONENTS INCLUDING THE REPUBLICAN PARTY ANTITAX BUSINESS GROUPS THE CHRISTIAN COALITION HEIGHTEN THE INCENTIVE FOR WAVERING DEMOCRATS TO SEEK A WAY OUT THE ODDS STILL FAVOR MR CLINTON IN THE HOUSE WHERE THE DEMISE OF THE ENERGY TAX BASED ON BRITISH THERMAL UNITS APPEARS TO HAVE CONVERTED MORE NO VOTES TO YES THAN THE ADMINISTRATION NOW STANDS TO LOSE BUT MR BOREN'S DEFECTION IN THE SENATE HAS THE ADMINISTRATION SCRAMBLING FOR CONVERTS AMONG THE SIX DEMOCRATS WHO VOTED NO THE FIRST TIME A MAJOR PROBLEM IS THAT THREE OF THEM SENS RICHARD BRYAN OF NEVADA FRANK LAUTENBERG OF NEW JERSEY AND DENNIS DECONCINI OF ARIZONA FACE TOUGH REELECTION FIGHTS NEXT YEAR BACKING MR CLINTON THIS WEEK WOULD FORCE THEM TO EXPLAIN NOT JUST THE TAX INCREASES BUT THEIR FLIPFLOPS AS WELL THE MEDIA PEOPLE ON OUR SIDE ALREADY HAVE THE ADS SAYS REPUBLICAN POLLSTER LINDA DIVALL TO GENERATE ITS OWN PRESSURE THE DEMOCRATIC NATIONAL COMMITTEE IS AIRING TELEVISION ADS IN THE HOME STATES OF SENS DECONCINI BRYAN HERBERT KOHL OF WISCONSIN AND ROBERT KERREY OF NEBRASKA DECRYING THE FORCES OF GRIDLOCK THE ADS DOVETAIL WITH MR CLINTON'S OWN CALL FOR DEMOCRATS TO SUMMON THE COURAGE TO FINALLY TURN THIS DEFICIT AROUND AND TURN THE COUNTRY IN THE RIGHT DIRECTION IN SOME MEASURE THAT MESSAGE APPEARS TO BE SINKING IN AT THE LUTHERAN BROTHERHOOD'S WEEKEND PICNIC IN MR PENNY'S MINNESOTA DISTRICT THE MESSAGE FROM THE KITCHEN HELP WASN'T ABOUT GASOLINE TAXES OR MEDICARE THEY WANT US TO WORK TOGETHER GET THIS DONE AND MOVE ON THE SIXTERM LAWMAKER SAYS THE BIGGEST REMAINING QUESTION IS WHETHER FRACTIOUS DEMOCRATS HAVE PAINTED THEMSELVES INTO SUCH A CORNER THAT IT'S EASIER TO KILL THEIR PRESIDENT'S PROGRAM THAN TO SAVE IT IF PARTY LEADERS INSIST THE ANSWER IS NO THEY AREN'T ENTIRELY CONVINCING THERE'S BEEN A LOT OF BRINKMANSHIP SAYS MODERATE REP JOHN LAFALCE OF NEW YORK ASK ME AT THE END OF THE WEEK WHETHER THERE'S BEEN TOO MUCH 9308020022 930802 MARKETING BRIEF CBS INC SETTLEMENT OF VIACOM SUIT TO RAISE 3RDPERIOD EARNINGS CBS INC SAID ITS SETTLEMENT OF A SUIT AGAINST VIACOM INTERNATIONAL INC WILL RESULT IN A LUMPSUM PAYMENT FROM VIACOM THAT WILL BOOST CBS'S 1993 THIRDQUARTER EARNINGS BY ABOUT 115 A SHARE AFTER TAXES UNDER THE SETTLEMENT TERMS VIACOM PAID CBS A LUMP SUM A PORTION OF WHICH CONSTITUTES PAYMENT FOR RIGHTS CBS GRANTED TO VIACOM TO DISTRIBUTE CERTAIN TELEVISION PROGRAMS OWNED BY CBS INCLUDING I LOVE LUCY THE HONEYMOONERS AND TWILIGHT ZONE IN THE US AND ABROAD AS PART OF THE SETTLEMENT VIACOM WILL ACQUIRE CERTAIN ADDITIONAL RIGHTS TO CBS PROGRAMS A CBS SPOKESWOMAN IN NEW YORK DECLINED TO SAY HOW MUCH THE LUMPSUM SETTLEMENT IS A VIACOM SPOKESWOMAN ALSO IN NEW YORK COULD NOT BE REACHED FOR COMMENT IN A NEWS RELEASE THE VIACOM INC UNIT SAID IT HAD MAINTAINED A RESERVE COVERING ALL THE ISSUES SURROUNDING THE LITIGATION WHICH DATES BACK TO 1984 AND THAT THE SETTLEMENT WON'T HAVE AN EFFECT ON THE COMPANY'S EARNINGS 9308020020 930802 TECHNOLOGY JUSTICE DEPARTMENT MULLS INVESTIGATION OF MICROSOFT AFTER RECENT FTC PROBE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JUSTICE DEPARTMENT OFFICIALS ARE REVIEWING THOUSANDS OF DOCUMENTS IN DOZENS OF BOXES TO DETERMINE IF THEY SHOULD INVESTIGATE MICROSOFT CORP AFTER THE FEDERAL TRADE COMMISSION DEADLOCKED ON ITS OWN PROBE THE FTC'S DIRECTOR OF COMPETITION MARY LOU STEPTOE GRANTED THE UNUSUAL REQUEST FOR THE PAPERS FROM THE DEPARTMENT'S ANTITRUST DIVISION LAST WEEK A FEW DAYS AFTER THE COMMISSIONERS DECLINED WITH A TIE VOTE TO BRING ANTICOMPETITIVE BEHAVIOR CHARGES AGAINST MICROSOFT OR TO CLOSE ITS INVESTIGATION MICROSOFT HAS DENIED IT ENGAGES IN ANY UNFAIR TRADE PRACTICES THE REQUEST BY ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST REPRESENTS A FIRST STEP IN WHAT COULD BE A CONTROVERSIAL MOVE IN FEDERAL ANTITRUST LAW ENFORCEMENT IT IS RARE FOR ONE OF THE GOVERNMENT'S TWO ANTITRUST AGENCIES TO REVIEW A CASE THAT HAS ALREADY BEEN THOROUGHLY INVESTIGATED BY THE OTHER MANY IN THE ANTITRUST COMMUNITY WILL VIEW THE DEPARTMENT'S ENTRY INTO THE MICROSOFT CASE AS A KIND OF CURIOUS AND OMINOUS SITUATION THAT GIVES FEDERAL OFFICIALS TWO BITES AT THE APPLE ACCORDING TO CHARLES JAMES ASSISTANT ATTORNEY GENERAL FOR ANTITRUST DURING THE LAST YEAR OF THE BUSH ADMINISTRATION CHARLES RULE WHO HELD THE POST UNDER PRESIDENT REAGAN AGREED HE SAID A JUSTICE DEPARTMENT PROBE OF THE COMPUTER SOFTWARE COMPANY WOULD LIKELY RAISE THE ARGUMENT THAT IT IS FUNDAMENTALLY UNFAIR FOR ONE COMPANY TO BE INVESTIGATED ON THE SAME CHARGES BY DIFFERENT AGENCIES AND BECAUSE MS BINGAMAN'S REQUEST FOR THE FTC DOCUMENTS FOLLOWED PRODDING BY TWO SENATORS HER ACTION DOES APPEAR TO HAVE TAKEN ON A BIT OF THE POLITICAL ASPECT MR RULE SAID BUT IF IT'S POLITICAL IT'S ALSO BIPARTISAN SEN HOWARD METZENBAUM D OHIO CHAIRMAN OF THE SENATE JUDICIARY COMMITTEE'S ANTITRUST SUBCOMMITTEE AND SEN ORRIN HATCH THE RANKING REPUBLICAN ON THE FULL COMMITTEE BOTH HAVE URGED MS BINGAMAN TO EXAMINE THE MICROSOFT CASE BASED IN REDMOND WASH MICROSOFT DECLINED TO COMMENT ON THE REVIEW JUSTICE DEPARTMENT AND FTC OFFICIALS SAID THEY HAVE NO COMMENT ON THE MICROSOFT CASE FTC STAFFERS HOWEVER ARE PLEASED WITH MS BINGAMAN'S MOVE SAID ONE ANTITRUST LAWYER INVOLVED IN THE CASE BECAUSE AFTER THREE YEARS OF PROBING MICROSOFT THE STAFFERS PRIVATELY ARE CONVINCED THE COMPANY SHOULD BE SANCTIONED FOR UNFAIR BUSINESS PRACTICES THE FTC STAFF HAD RECOMMENDED THAT THE COMMISSIONERS BRING A CIVIL CHARGE AGAINST MICROSOFT FOR USING THE DOMINANT MARKET POWER OF ITS DISK OPERATING SYSTEM KNOWN AS MSDOS TO COMPEL COMPUTEREQUIPMENT MANUFACTURERS TO PURCHASE MICROSOFT PRODUCTS BUT THE COMMISSIONERS DECLINED TO TAKE ANY ACTION ANY JUSTICE DEPARTMENT ACTION AGAINST MICROSOFT ISN'T LIKELY TO HAPPEN SOON WHILE IT IS CONCEIVABLE THAT SOME INFORMATION IN THE FILES COULD LEAD TO A QUICK DECISION MR JAMES SAID IT'S MORE LIKELY THAT THE DEPARTMENT REVIEW COULD TAKE AS LONG AS THE THREEYEAR FTC PROBE AND PERHAPS LONGER IF JUSTICE DEPARTMENT OFFICIALS LOOK FOR POSSIBLE VIOLATIONS OF STATUTES THE DEPARTMENT BUT NOT THE FTC ENFORCES THE JUSTICE DEPARTMENT UNLIKE THE FTC CAN BRING CRIMINAL CHARGES NO ONE HAS INDICATED HOWEVER THAT SUCH CHARGES WOULD BE BROUGHT AGAINST MICROSOFT 9308020019 930802 WHAT'S NEWS BUSINESS AND FINANCE EUROPEAN MONETARY OFFICIALS AGREED TO LET THEIR CURRENCIES FLUCTUATE MUCH MORE WIDELY IN AN EFFORT TO SAVE EUROPE'S EXCHANGERATE SYSTEM THE PLAN COULD RELIEVE CENTRAL BANKS FROM HAVING TO AGGRESSIVELY DEFEND WEAKER CURRENCIES BUT THE CHANGE ISN'T EXPECTED TO CALM THE MARKET TURMOIL THAT HAS PUSHED THE MONETARY SYSTEM TO THE BRINK OF COLLAPSE HOUSE AND SENATE LEADERS HOPE A CONFERENCE COMMITTEE WILL FINISH WORK BY TOMORROW ON A DEFICITREDUCTION PLAN THAT CAN BE PUT TO A VOTE IN CONGRESS THIS WEEK THE PLAN INCLUDES A GASOLINE TAX RISE OF 43 CENTS A GALLON GRUMMAN IS UNDER CRIMINAL INVESTIGATION FOR ALLEGEDLY OVERCHARGING NASA BY AS MUCH AS 8 MILLION THE PROBE THREATENS THE COMPANY'S ELIGIBILITY FOR NEW FEDERAL CONTRACTS THE DEFENSE CONTRACTOR COULD ALSO FACE CRIMINAL SANCTIONS FOR PENTAGON WORK STRETCHING BACK TO THE LATE 1980S BETHLEHEM STEEL AND NATIONAL STEEL REACHED PACTS WITH THE UNITED STEELWORKERS GIVING THE UNION BOARD REPRESENTATION AND JOB SECURITY IN EXCHANGE FOR MOVES TO INCREASE PRODUCTIVITY BOEING IS BRACING FOR POSSIBLE FURTHER CUTS IN JETLINER PRODUCTION DEPENDING LARGELY ON WHETHER IT LANDS A PIVOTAL ORDER FROM SAUDI ARABIA AN ECONOMIC RECOVERY HAS OCCURRED IN THE MOUNTAIN MIDWEST AND SOUTHERN SECTIONS OF THE US WHILE THE MIDDLE ATLANTIC NEW ENGLAND AND PACIFIC REGIONS REMAIN IN A SLUMP A STUDY SHOWED SEPARATELY PERSONAL INCOME FELL 01 IN JUNE THOUGH SPENDING AND HOME SALES JUMPED CORPORATE PROFITS IN THE SECOND QUARTER WERE SLIGHTLY HIGHER THAN A YEAR EARLIER AND FURTHER GAINS ARE WIDELY EXPECTED AS 1993 UNFOLDS MOTOROLA COMPLETED THE FIRST ROUND OF EQUITY FINANCING FOR A 34 BILLION SATELLITEPHONE PROJECT WITH AN UNDISCLOSED NUMBER OF GROUPS OR CORPORATIONS COMMITTING 800 MILLION DELL COMPUTER PLANS TO UNVEIL TODAY THREE LINES OF SOUPEDUP COMPUTERS AT SHARPLY LOWER PRICES FTC DOCUMENTS ON MICROSOFT ARE BEING REVIEWED BY JUSTICE DEPARTMENT OFFICIALS TO DETERMINE IF THEY WANT TO CONDUCT THEIR OWN ANTITRUST INVESTIGATION OF THE SOFTWARE GIANT AFTER THE FTC DEADLOCKED IN ITS OWN INQUIRY GENERAL MOTORS AND VOLKSWAGEN'S CHAIRMEN AGREED TO TALK EARLY THIS WEEK EVEN AS THE COMPANIES' BATTLE OVER CHARGES THAT VW'S LOPEZ STOLE GM SECRETS PROMISES TO ESCALATE US MEXICAN AND CANADIAN NEGOTIATORS MUST CLEAR SOME STEEP HURDLES INCLUDING FINANCING AN ENVIRONMENTAL CLEANUP ALONG THE USMEXICO BORDER TO FINISH PROVISIONS UNDER THE NORTH AMERICAN FREE TRADE ACCORD MOST CANADIAN COMPANIES POSTED SOLID IMPROVEMENT IN EARNINGS FOR THE SECOND QUARTER THOUGH GAINS WEREN'T AS LARGE AS MANY ANALYSTS EXPECTED WHITTLE COMMUNICATIONS IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL LAUNCH A MODIFIED VERSION OF ITS FORPROFIT SCHOOLS PROJECT AFTER FAILING TO RAISE 750 MILLION TO HELP PAY FOR IT BONDS LEHMAN BROTHERS TREASURY INDEX 536884 UP 268 COMMODITIES OIL 1788 A BARREL OFF 24 CENTS DOW JONES FUTURES INDEX 13113 UP 073 SPOT INDEX 12488 UP 072 DOLLAR 10480 YEN OFF 165 17425 MARKS UP 00015 9308020018 930802 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THE NATION'S MANUFACTURING SECTOR HAS SUFFERED MORE THAN MOST DURING THE TOUGH ECONOMIC TIMES AND SOME SAY THE WORST MAY NOT YET BE OVER TWO REPORTS DUE OUT THIS WEEK THE LABOR DEPARTMENT'S MONTHLY EMPLOYMENT SURVEY AND A PRIVATE POLL OF PURCHASING MANAGERS ARE EXPECTED TO SHOW CONTINUED SLUGGISHNESS IN MANUFACTURING THE JULY EMPLOYMENT REPORT WILL PROBABLY SHOW THE ECONOMY LOST ANOTHER 23000 FACTORY JOBS LAST MONTH SAID JAMES PADINHA ECONOMIST AT FIRST INTERSTATE BANCORP IN LOS ANGELES SINCE FEBRUARY ROUGHLY 190000 MANUFACTURING JOBS HAVE BEEN LOST AND THE NUMBER OF JOBS AT FACTORIES IS NOW 17 MILLION LOWER THAN IT WAS AT ITS PEAK FOUR YEARS AGO MR PADINHA ESTIMATES TOTAL NONFARM PAYROLL JOBS GREW BY 103000 IN JULY WITH THE GAINS CONCENTRATED MOSTLY IN SERVICE INDUSTRIES THERE IS A CHANCE THE UNEMPLOYMENT RATE COULD CLIMB TO 71 FROM 7 IF THE WORK FORCE CAN'T ABSORB THE FLOOD OF STUDENTS LOOKING FOR JOBS HE ADDED ALSO THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX WHICH MEASURES CONDITIONS IN THE MANUFACTURING SECTOR IS EXPECTED TO REGISTER ANOTHER SUBPAR READING MR PADINHA SAID I'M SKEPTICAL THAT THE WORST IS OVER HE SAID WE ARE SEEING LAYOFFS IN MANUFACTURING THAT WERE ANNOUNCED LATE LAST YEAR AND THEY MAY NOT BE DONE YET 9308020017 930802 CORRECTIONS & AMPLIFICATIONS LAFAYETTE JONES IS A FOUNDER OF THE AMERICAN HEALTH AND BEAUTY AIDS INSTITUTE BUT HE NO LONGER HEADS THE TRADE GROUP AS WAS INCORRECTLY STATED IN A PAGEONE ARTICLE JULY 29 ON JOHNSON PRODUCTS CO TANDEM COMPUTERS INC HAD A LOSS OF 488 A SHARE IN ITS FISCAL THIRD QUARTER ENDED JUNE 30 NOT 549 A SHARE AS INCORRECTLY STATED IN AN ARTICLE JULY 29 AMERICA WEST AIRLINES HAD 93 MILLION IN CASH ON HAND JUNE 30 THE END OF ITS SECOND QUARTER SIGNIFICANTLY AHEAD OF ITS CHAPTER 11 BUSINESS PLAN AN ARTICLE JULY 29 INCORRECTLY STATED THAT THE AIRLINE'S RECENT FARE SALE WAS A PUSH TO RAISE CASH THE PRESIDENT OF COLLINS INDUSTRIES INC HUTCHINSON KAN DIDN'T RESIGN AFTER AN INTERNAL INVESTIGATION FOUND RESULTS HAD BEEN MISSTATED AS WAS INCORRECTLY REPORTED IN AN ARTICLE FRIDAY THE CHIEF FINANCIAL OFFICER AND THE PRESIDENT OF A SUBSIDIARY BOTH RESIGNED 9308020016 930802 BUSINESS BRIEF AXA SA FRENCH GROUP ENTERS MARKET FOR LIFE INSURANCE IN JAPAN AXA SA A PARIS INSURANCE GROUP PLANS TO SPEND ROUGHLY ONE BILLION FRANCS 1682 MILLION TO ESTABLISH A FOOTHOLD IN THE JAPANESE LIFE SECTOR AXA WOULD BE THE FIRST FRENCH GROUP TO PENETRATE THE JAPANESE LIFEINSURANCE MARKET WHILE OTHERS HAVE SET UP IN ACCIDENT INSURANCE THE COMPANY NOTED THAT THE COST OF THE INVESTMENT REFLECTS THE NEED TO START ITS OWN DISTRIBUTION NETWORK TO SELL LIFE POLICIES AXA ESTIMATED THE JAPANESE LIFEINSURANCE MARKET AT 29 TRILLION YEN 27234 BILLION DOMINATED BY ABOUT 20 JAPANESE COMPANIES AXA HOPES TO MAKE A PROFIT AFTER SEVEN OR EIGHT YEARS FOLLOWING INITIAL INVESTMENTS 9308020015 930802 PEPPERAND SALT PAYMENT FOR PAST CARELESSNESS REMISSION FEES 9308020014 930802 WORLD MARKETS MOST EUROPEAN STOCKS GAIN ON OUTLOOK FOR RATES IN MONETARY CRISIS WHICH FELLS FRANKFURT PRICES A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARE PRICES GAINED FRIDAY AS TURMOIL IN EUROPE'S EXCHANGERATE SYSTEM INTENSIFIED SPECULATION ABOUT INTERESTRATE CUTS BUT FRANKFURT STOCKS SLUMPED 17 ON FEARS THAT THE DAYS WERE NUMBERED FOR THE CONTINENT'S MONETARY LINKAGE THE PROSPECTS FOR LOWER LENDING RATES AND THE UNCERTAINTY ABOUT THE EXCHANGE RATE MECHANISM OR ERM AGAIN FUELED MOST EUROPEAN BOURSES PARIS EQUITIES SURGED 25 TO LEVELS UNSEEN IN THREE YEARS ON BETS THAT THE FRENCH CURRENCY WOULD BE DEVALUED TOKYO STOCKS SOFTENED FRIDAY ON MILD PROFITTAKING FOLLOWING THE MARKET'S 32 JUMP IN THE PREVIOUS SESSION WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10856 UP 053 POINT REFLECTING INCREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A DROP IN NORTH AMERICA PRECIOUS METALS STOCKS AGAIN WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15205 UP 4 POINTS OR 27 WITH POSEIDON GOLD OF AUSTRALIA POSTING A 10 GAIN IN ITS LOCAL CURRENCY SOFTWARE STOCKS TRAILED AT 10710 DOWN 275 OR 25 WITH BORLAND INTERNATIONAL OF THE US SLIDING 76 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 89 POINTS TO 29265 THE FT 30STOCK INDEX INCREASED 98 POINTS TO 23176 VOLUME WAS 7628 MILLION SHARES COMPARED WITH 6918 MILLION SHARES A DAY EARLIER THE FT 100 WAS UP 988 POINTS FOR THE WEEK INITIALLY SPURRED BY EXPECTATIONS THAT THE BUNDESBANK GERMANY'S CENTRAL BANK WOULD CUT ITS DISCOUNT RATE LAST THURSDAY WHEN THE REDUCTION DIDN'T MATERIALIZE LONDON INVESTORS SHRUGGED OFF THE BLOW AND FOCUSED ON THE DISASTROUS EFFECT ON THE EUROPEAN MONETARY SYSTEM OR EMS LONDON PARTICIPANTS BET THAT THE SYSTEM WILL COLLAPSE BECAUSE EUROPEAN GOVERNMENTS WON'T BE ABLE TO SUPPORT CURRENCIES AT RATES REQUIRED BY THE ERM WITHOUT THE MECHANISM GOVERNMENTS WOULD BE FREE TO CUT INTEREST RATES AFTER MEETING INTO THE MORNING MONDAY EUROPEAN COMMUNITY FINANCE MINISTERS AGREED TO WIDEN TO 15 THE BAND IN WHICH ERM CURRENCIES CAN FLUCTUATE AGAINST EACH OTHER IN A LASTDITCH HOPE FOR SOME PROTECTION AGAINST SPECULATORS AS THE BRITISH POUND ISN'T PART OF THE ERM THE CURRENCY FACES LITTLE RISK OF DEVALUATION IN FRANKFURT THE DAX 30STOCK INDEX SANK 3047 POINTS TO 180323 NEAR THE DAY'S LOW OF 179997 ALL OF THE DAX ISSUES DECLINED AND EXPORTERS TOOK THE HARDEST BEATING INVESTORS WORRIED THAT AN ERM COLLAPSE WOULD CAUSE MOST CURRENCIES REMAINING IN THE ERM TO BE DEVALUED AGAINST THE GERMAN MARK AT LEAST FOR THE SHORT TERM IN THE LONGER TERM THE OTHER COUNTRY'S CURRENCIES COULD GAIN GROUND IF THEIR ECONOMIES WERE STIMULATED BY LOWER INTEREST RATES THE MARKET WORRIED THAT EVEN A RELATIVELY SHORT PERIOD OF STRENGTH FOR THE GERMAN CURRENCY WOULD BE ENOUGH TO HAMPER THE COUNTRY'S EXPORTS AND INTENSIFY ITS RECESSION BUT OTHER INVESTORS CITED LITTLE CHANCE THAT EUROPE WOULD RETURN TO A SYSTEM OF FREEFLOATING CURRENCIES IN PARIS PRICES SKYROCKETED IN CHAOTIC DEALINGS THAT MARKED A RECORD FOR VOLUME AS INVESTORS CONTINUED TO FLOCK INTO THE MARKET AMID THE WORSENING EMS CRISIS THE EXCHANGE'S MAIN INDEX LAST WEEK SOARED 46 MOST OF THAT ON THURSDAY AND FRIDAY IN THE WAKE OF GERMANY'S THURSDAY RATE MOVE THE RESULTING GAINS FOR PARIS STOCKS CAME IN ANTICIPATION OF A FRENCH FRANC DEVALUATION WHICH COULD MAKE FRENCH COMPANIES WITH GLOBAL EXPOSURE MORE COMPETITIVE AND SPUR AN ECONOMIC RECOVERY BY ALLOWING FRENCH INTEREST RATES TO FALL ELSEWHERE IN EUROPE AMSTERDAM SHARES STRENGTHENED AGAINST THE BACKDROP OF ERM CONFUSION AS INVESTORS WERE CONVINCED LOWER EUROPEAN RATES ARE AHEAD THE DOLLAR RALLIED BOOSTING STOCKS OF MANY DUTCH COMPANIES WITH US OPERATIONS IN MILAN THE ERM TURMOIL SPURRED SPECULATION ABOUT DEVALUATIONS AND INTERESTRATE CUTS PUSHING SHARES UP BROADLY TO END AT THE DAY'S HIGHS IN MADRID PRICES ROSE A BIT AFTER PROFITTAKING CHOPPED DOWN EARLY HIGHS REACHED ON BUYING IN ANTICIPATION OF A DEVALUATION OF THE SPANISH PESETA OR A FLOAT FROM THE ERM THE MARKET ALSO LOST STEAM BECAUSE OF THE GOVERNMENT'S SILENCE ABOUT ITS PLANS FOR THE BELEAGUERED PESETA STOCKHOLM SHARES ADVANCED FOR THE SEVENTH CONSECUTIVE SESSION AND THE EXCHANGE'S MAIN INDEX ROSE TO A NEW 1993 HIGH EVERY DAY LAST WEEK THE FIRM DOLLAR AND THE PROSPECT OF LOWER EUROPEAN INTEREST RATES IN THE WAKE OF THE EUROPEAN CURRENCY SHAKEUP SUPPORTED THE SWEDISH MARKET AGAIN LED BY DOLLARSENSITIVE EXPORTERS IN BRUSSELS SHARES CLOSED SHARPLY HIGHER IN ACTIVE TRADING ON SPECULATION THAT THE BELGIAN FRANC WOULD BE DEVALUED IN THE ERM PRICES CLIMBED ACROSS THE BOARD WITH ISSUES SENSITIVE TO INTEREST RATES AND THE DOLLAR POSTING THE BIGGEST GAINS INVESTMENT TRUST FUNDS CONTINUED TO BUY STRONGLY PUSHING THE NIKKEI BRIEFLY ABOVE 20500 FOR THE FIRST TIME IN WEEKS BUT THE INDEX MET RESISTANCE AT HIGHER LEVELS AND PROFITTAKING PUSHED THE MARKET DOWN THOUGH PRICES WAFFLED IN A RANGE OF ABOUT 150 POINTS SOME DEALERS CLOSED OUT POSITIONS AHEAD OF THE WEEKEND THEIR CAUTION PROMPTED BY THE POSSIBILITY OF INCREASED VOLATILITY THE MARKET'S ENTHUSIASM THE PREVIOUS DAY FOR WHAT APPEARED TO BE THE COMING INSTALLATION OF A SEVENPARTY COALITION GOVERNMENT GAVE WAY TO A WAITANDSEE ATTITUDE ABOUT ECONOMIC POLICIES THAT NEW POLITICAL LEADERS WILL SUPPORT IN SYDNEY STOCKS CLIMBED ACROSS THE BOARD TAKING THE ALLORDINARIES INDEX TO A NEW SIXYEARHIGH THE STRENGTH STEMMED PARTLY FROM A SURGE IN THE PRICE OF GOLD AND A CUT IN AUSTRALIA'S OFFICIAL CASH INTEREST RATE HONG KONG SHARES FINISHED AT THE HIGHEST LEVEL IN ALMOST THREE WEEKS PARTLY ON BARGAINHUNTING IN TAIPEI PRICES FELL PARTLY IN REACTION TO AN INTERESTRATE CUT ON BORROWING BY COMMERCIAL BANKS FROM TAIWAN'S CENTRAL BANK IN MANILA SHARES CLIMBED AS BLUECHIP COMPANIES BEGAN POSTING FIRSTHALF RESULTS IN WELLINGTON EQUITIES SURGED TO A THREEYEAR CLOSING HIGH WITH STRONG DEMAND IN THE TELECOMMUNICATIONS SECTOR 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 9308020013 930802 TRAVEL EUROPE USA AUGUST BECOMES THE VACATION MONTH BY JAMISON S PRIME STAFF REPORTER OF THE WALL STREET JOURNAL IN EARLY JUNE JANE MORTON SET OUT TO PLAN THE SUMMER VACATION FOR HER FAMILY OF FOUR AS A TEACHER IN GREENSBURG IND HER SCHEDULE WAS FLEXIBLE BUT HER SONS' BASEBALL LEAGUE PREEMPTED JUNE AND EARLY JULY AND HER HUSBAND'S DUTIES AS PRESIDENT OF THE LEAGUE ELIMINATED MOST OF THE REST OF JULY SHE ALSO HAD TO CONSIDER THE SCHEDULES OF THE FIVE PEOPLE IN THE FAMILY THEY PLANNED TO MEET ON VACATION IN THE END THE MORTONS BOOKED A HOTEL ROOM IN FT MYERS FLA FOR A WEEK LATER THIS MONTH MORE AND MORE FAMILIES ACROSS THE NATION ARE GOING THROUGH THIS TYPE OF EXERCISE AND WINDING UP ON A SIMILAR SCHEDULE AS BABY BOOMERS' CHILDREN INCREASINGLY THROW THEMSELVES INTO ORGANIZED SUMMER ACTIVITIES THEIR PARENTS ARE FINDING THE MONTH OF AUGUST IS THE ONLY TIME TO SQUEEZE IN A VACATION THE US WON'T SOON RESEMBLE EUROPE WHERE MANY BUSINESSES ARE VIRTUALLY DESERTED IN AUGUST WE DON'T HAVE IT TO THAT EXTENT SAYS A SPOKESMAN FOR AVIS INC BUT MORE AND MORE PEOPLE ARE TAKING THEIR SUMMER VACATIONS IN AUGUST THE SURGE IN AUGUST TRAVEL IS STARTING TO AFFECT THE TRAVEL INDUSTRY WITH MANY TRAVEL COMPANIES SAYING BUSINESS THIS MONTH WILL BE BETTER THAN PRIOR AUGUSTS THE MAGIC DAY OF SUMMER ACTIVITIES FINISHING IS JULY 31 OR AUG 1 SAYS KATHY SUDEIKIS A TRAVEL AGENT IN OVERLAND PARK KAN ALL OF A SUDDEN PEOPLE WHO HAVE BEEN GOING A MILLION MILES AN HOUR HAVE TO THINK ABOUT A TRIP FOR TRAVELERS THAT MEANS BIGGER CROWDS AT POPULAR DESTINATIONS AND PEOPLE WITHOUT RESERVATIONS MAY HAVE TO SCRAMBLE THIS YEAR BECAUSE SOME RESORTS AMUSEMENT PARKS HOTELS AND CAMPING SITES WILL BE BOOKED MOST BIG US AIRLINES SAY AUGUST TRAFFIC ISN'T EXPECTED TO BE AS ROBUST AS IT WAS LAST YEAR DURING THE BIG FARE WAR AND OVERCAPACITY IN THE HOTEL INDUSTRY MEANS ROOM SHORTAGES WILL BE A PROBLEM ONLY FOR LASTMINUTE BOOKERS IN POPULAR SPOTS BUT MANY POPULAR FAMILY DESTINATIONS ALREADY ARE SEEING SIGNS THAT AUGUST WILL BE HECTIC IN CENTRAL FLORIDA THE KISSIMMEE ST CLOUD CONVENTION AND VISITORS BUREAU SAYS IT HAS SENT OUT THOUSANDS OF COPIES OF A DISCOUNT COUPON BOOK THE OFFERS AREN'T GOOD UNTIL AUG 15 AND THE BUREAU SAYS IT HASN'T EVEN STARTED PROMOTING THE BOOK AT FRIPP ISLAND SC A 200PROPERTY RESORT LOCATED NORTH OF HILTON HEAD FAMILIES HAVE MADE EARLY AUGUST THE BUSIEST TIME IT WASN'T ALWAYS SO THROUGHOUT THE 1980S THE SUMMER SEASON PEAKED ON JULY 4 BUT FOR THE PAST THREE YEARS OCCUPANCY HAS HOVERED AROUND 100 FOR THE FIRST TWO WEEKS OF AUGUST CAMERON HAUGHT GENERAL MANAGER FOR FRIPP CO WHICH MANAGES RENTALS ON THE 200ACRE PRIVATE ISLAND SAYS IT'S VERY TOUGH TO BREAK ABOVE 80 OCCUPANCY AT THE BEGINNING OF THE SUMMER ESPECIALLY EARLY IN JUNE CARRENTAL COMPANIES REPORT BEING BUSIER THIS MONTH THAN IN THE PAST THOUGH THE ABSENCE OF EXTREMELY CHEAP AIR FARES THIS SUMMER MEANS MORE FAMILIES ARE PILING INTO THEIR OWN CARS AVIS FOR ONE NOTES BETTER THAN AVERAGE ACTIVITY FOR AUGUST IN MARKETS WHERE MANY FAMILIES DON'T OWN CARS SUCH AS MANHATTAN AVIS SAYS AUGUST WAS ITS PEAK CARRENTAL MONTH LAST YEAR AND SHOULD COME OUT ON TOP FOR 1993 AS WELL AND ALAMO RENT A CAR SAYS IT EXPECTS PHENOMENAL TRAFFIC IN THE FIRST HALF OF AUGUST OF COURSE FAMILIES HAVE ALWAYS HAD TO PLAN VACATIONS AROUND SUMMER SPORTS SCHOOLS AND CAMPS BUT CHILDREN NOW ARE UNDER A '90S PRESSURE TO PERFORM THAT MAKES THEIR SCHEDULES AS FORMALIZED AND RITUALIZED AS THEIR PARENTS' SAYS AL WALLACK A SENIOR VICE PRESIDENT AT NEW YORKBASED CELEBRITY CRUISE LINES THIS WHOLE BABY BOOMER GENERATION IS SO ACCELERATED SAYS MS SUDEIKIS THE KANSAS TRAVEL AGENT AND SINCE KIDS HAVE SO MANY ACTIVITIES THAT ONLY LEAVES AUGUST HER TWO DAUGHTERS WERE IN A SUMMER THEATER PRODUCTION OF OKLAHOMA YESTERDAY WAS THE SHOW'S LAST DAY BUSY CHILDREN AREN'T THE ONLY REASON FOR THE RISE OF LATESUMMER TRAVEL THIS YEAR AT LEAST CONSUMERS WHO POSTPONED MAKING TRAVEL PLANS WHILE THEY SHOPPED AROUND FOR BARGAIN AIR FARES ARE CONCEDING DEFEAT AND RESERVING FLIGHTS AT THE MODERATE DISCOUNTS AVAILABLE IN ORANGE COUNTY CALIF THE FIVEMEMBER TALEBI FAMILY FIRST PLANNED ITS ANNUAL VISIT TO RELATIVES IN NEW JERSEY FOR MIDJULY BUT PUSHED THE TRIP BACK TO AUG 19 BECAUSE FARES SEEMED TOO HIGH SAYS MOTHER EILEEN NOW WITH SUMMER ALMOST OVER AND LAST YEAR'S BARGAIN FARES NOWHERE TO BE FOUND MS TALEBI IS RESIGNED TO PAYING A TOTAL OF CLOSE TO 2000 FOR THE AIRPLANE TICKETS LAST YEAR THE TRIP COST HALF THAT AMOUNT IT'S COSTPROHIBITIVE SHE SAYS BUT WE DECIDED WE'RE GOING TO GO REGARDLESS ADDING TO THE AUGUST JAM TRAVEL PROFESSIONALS SAY ARE TWOINCOME COUPLES WHO HAD TROUBLE COORDINATING THEIR VACATION SCHEDULES AND NERVOUS EMPLOYEES WHO HUNG IN AT JOBS ALL SUMMER SO AS NOT TO ANNOY THEIR BOSSES OR APPEAR TOO EAGER FOR TIME OFF SAYS MR WALLACK OF CELEBRITY FINALLY AUGUST TRADITIONALLY IS A TIME WHEN MANY EUROPEANS VISIT THE US THOSE REASONS ADD UP TO INCREASED BUSINESS FOR MANY TRAVEL COMPANIES AT YELLOWSTONE NATIONAL PARK LODGE OPERATOR TW RECREATION SERVICES A DIVISION OF FLAGSTAR COS SAYS IT EXPECTS A BUMP IN BUSINESS THIS MONTH FROM A YEAR EARLIER WITH BOOKINGS FILLING UP FURTHER IN ADVANCE CELEBRITY CRUISE LINES A JOINT VENTURE OF OVERSEAS SHIPHOLDING GROUP INC AND CHANDRIS INC HAS HAD SOME VACANCIES IN PRIOR AUGUSTS BUT SAYS IT IS FILLING EVERY LITTLE SPACE THIS MONTH AND AUGUST RESERVATIONS AT CLUB MEDITERRANEE SA'S VACATION VILLAGES IN THE CARIBBEAN AND MEXICO ALSO ARE HIGHER THAN IN THE PAST SAYS RICKY CARRICK VICE PRESIDENT SALES HE ATTRIBUTES THE INCREASE TO THE ENDING OF CHILDREN'S SUMMER CAMPS THE HOTEL INDUSTRY WITH ITS HUGE OVERCAPACITY HAS MUCH TO GAIN FROM THE AUGUST SURGE THE EMBASSY SUITES UNIT OF PROMUS COS MEMPHIS TENN SAYS AUGUST OCCUPANCY ROSE ABOUT A PERCENTAGE POINT IN EACH OF THE PAST THREE YEARS TO 804 IN 1992 THERE'S GOOD NEWS AND BAD NEWS FOR TRAVELERS SAYS CLYDE CULP PRESIDENT AND CHIEF EXECUTIVE OF EMBASSY SUITES THINGS AREN'T ALREADY SOLD OUT BUT IF TRAVELERS WAIT TOO LONG THEY WILL BE 9308020012 930802 FOREIGN EXCHANGE EC TO ALLOW CURRENCIES TO FLUCTUATE WIDELY BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EUROPEAN COMMUNITY FINANCE MINISTERS AGREED TO ALL BUT ABANDON DEFENDING ONE ANOTHER'S CURRENCIES BUT THEIR PLAN WASN'T EXPECTED TO CALM THE TURMOIL THAT HAS PUSHED EUROPE'S EXCHANGE RATE MECHANISM TO THE BRINK OF COLLAPSE AT A MEETING IN BRUSSELS THAT DIDN'T BREAK UP UNTIL ABOUT 145 AM MONDAY LOCAL TIME THE EC FINANCE MINISTERS AS WELL AS CENTRAL BANKERS AGREED THAT SEVEN OF THE NINE CURRENCIES IN THE ERM COULD RISE OR FALL AS MUCH AS 15 ABOVE OR BELOW THEIR CENTRAL RATES IN CONTRAST TO THE PREVIOUS LIMIT FOR MOST CURRENCIES OF A 225 DEVIATION FOR THE CURRENCIES OF SPAIN AND PORTUGAL THE BAND WAS PLUS OR MINUS 6 UNDER THE NEW ARRANGEMENT GERMANY AND THE NETHERLANDS REACHED A SIDE DEAL UNDER WHICH THEY WOULD VOLUNTARILY HOLD TO THE OLD 225 FLUCTUATION RANGE BETWEEN THE MARK AND GUILDER UNDER ERM RULES IF A CURRENCY FALLS BELOW THE PERMITTED LEVEL CENTRAL BANKS ARE REQUIRED TO DEFEND IT WITH EITHER INTERVENTION OR HIGHER INTEREST RATES BY WIDENING THE BANDS IT IS HOPED THAT SOME OF THE HEAVY SELLING PRESSURE OF THE PAST FEW DAYS WILL BE TAKEN OFF CURRENCIES SUCH AS THE FRENCH FRANC AND THAT CENTRAL BANKS WON'T BE REQUIRED TO SPEND MONEY AS QUICKLY TO DEFEND THE BANDS AS MARKETS CALM DOWN FINANCE OFFICIALS IN BRUSSELS SUGGESTED THAT CENTRAL BANKS COULD START EASING THE HIGH INTEREST RATES USED TO PROP UP THE WEAKER CURRENCIES SIMILAR TO WHAT HAPPENED IN BRITAIN AFTER STERLING LEFT THE ERM LAST SEPTEMBER BUT FINANCE MINISTERS DIDN'T MAKE ANY PROMISES THE OBJECTIVE OUR MONETARY POLICY IS A STABLE CURRENCY SAID FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY WHO DECLINED TO INDICATE WHETHER HE BELIEVES THE NEW CURRENCY SYSTEM WOULD SOON YIELD LOWER INTEREST RATES ONE OF MR ALPHANDERY'S AIDES HOWEVER SUGGESTED IT WAS EVIDENT THAT ONCE THE FRENCH FRANC IS NO LONGER UNDER ATTACK THE GAIN WOULD BE LOWER INTEREST RATES SOMETHING LOUDLY DEMANDED BY FRANCE'S RECESSIONBATTERED BUSINESS COMMUNITY THE EC MINISTERS WERE TRYING TO PREVENT THE COLLAPSE OF A SYSTEM DESIGNED TO ENSURE MONETARY STABILITY AS THE FIRST STEP TOWARD A SINGLE EUROPEAN CURRENCY BUT CURRENCY TRADERS AND ANALYSTS REMAINED SKEPTICAL OF THE NEW DEAL IT'S A FIG LEAF FOR THE POLITICIANS TO CLAIM THE SYSTEM IS STILL IN PLACE SAID MICHAEL BURKE AN ECONOMIST AT CITIBANK IN LONDON HE PREDICTED THAT THE MARKET WILL SELL THE FRENCH FRANC AND ALL THE OTHER WEAK CURRENCIES THE DANISH KRONE SPANISH PESETA PORTUGUESE ESCUDO AND POSSIBLY THE BELGIAN FRANC AND IRISH PUNT PAUL CHERTKOW HEAD OF GLOBAL CURRENCY RESEARCH AT UNION BANK OF SWITZERLAND IN LONDON SAID THE AGREEMENT MUST BE QUICKLY ACCOMPANIED BY SUBSTANTIAL REDUCTIONS IN INTEREST RATES IN ORDER TO STABILIZE THE CURRENCIES UNDER PRESSURE THE BETTER WAY OF STABILIZING THE SYSTEM WOULD HAVE BEEN TO ANNOUNCE LOWER INTEREST RATES AT THE SAME TIME THEY ANNOUNCED THE NEW WIDER TRADER BANDS SAID MR CHERTKOW SOME PARTICIPANTS AT THE FINANCE MEETING DIDN'T HIDE THEIR DISAPPOINTMENT IT WAS A VERY SAD DAY FOR EUROPE DUTCH FINANCE MINISTER WIM KOK SAID AT A NEWS CONFERENCE THE ACCORD HE ADDED HAD A DIFFICULT BIRTH AND IT'S NOT A BEAUTIFUL CHILD IT'S CLEAR THE PROCESS TO MONETARY UNION WILL BE AFFECTED BY THIS BECAUSE THE NEW TRADING BANDS ARE SO EXCEPTIONALLY WIDE WE'RE VERY CLOSE TO HAVING FLOATING RATES WITH ANOTHER NAME SAID MR BURKE OF CITIBANK INDEED TRADERS AND OTHERS PREDICTED THAT WORLD CURRENCY EXCHANGE MARKETS COULD BE IN FOR ANOTHER DAY OF TURMOIL TODAY THE ACTION IS GOING TO BE EXTREMELY DRAMATIC SAID ROBERT THOMAS CHIEF ECONOMIST AT NATWEST MARKETS LTD IN LONDON HE AND OTHERS POINTED OUT THAT THE LONG DELAY IT TOOK TO REACH THIS MORNING'S AGREEMENT SHOWED HOW VARIED WERE THE GOALS OF THE ERM MEMBER COUNTRIES IN ADDITION TO CONTINUED SELLING OF THE ERM'S WEAKER CURRENCIES TRADERS PREDICTED THERE WOULD BE BIG RALLIES IN SEVERAL EUROPEAN BOND MARKETS AS INVESTORS BET THAT COUNTRIES SUCH AS FRANCE DENMARK AND SPAIN WOULD CUT INTEREST RATES WHATEVER THE CENTRAL BANKERS MEETING IN BRUSSELS CAME UP WITH INCLUDING THE NEW WIDER BANDS MUST PASS TWO CREDIBILITY TESTS SAID PETER O'SHEA MANAGING DIRECTOR FOREIGN EXCHANGE AT MORGAN STANLEY & CO IN LONDON FINANCIAL MARKETS MUST BE CONVINCED THAT THE BUNDESBANK HAS PUT ITS FULL FAITH AND AUTHORITY BEHIND THE NEW TERMS AND THOSE TERMS MUST PERMIT SHARPLY LOWER INTEREST RATES QUICKLY IN OTHER EUROPEAN COUNTRIES AND ANALYSTS WERE ALMOST IMMEDIATELY SKEPTICAL CREDIBILITY IS GONE TO ZERO IN TERMS OF THE ABILITY OF THE ERM TO HOLD TOGETHER SAID CITIBANK'S MR BURKE THE PROBLEM IS THAT THE BUNDESBANK HAS IN NO WAY ACTED TO STABILIZE THE SYSTEM AND THEREFORE THE WIDE BANDS UNDERLINE THE FACT THAT THE FRANC FORT OR STRONG FRANC POLICY IS OF PERIPHERAL CONCERN TO THE BUNDESBANK SAID MR CHERTKOW OF UBS IT WOULD HAVE BEEN BETTER TO HAVE SUSPENDED THE SYSTEM FORMALLY THE CURRENCY CRISIS WAS TOUCHED OFF LAST THURSDAY WHEN THE BUNDESBANK THE GERMAN CENTRAL BANK LEFT ITS DISCOUNT RATE WHICH TYPICALLY SETS THE FLOOR FOR GERMAN MONEY MARKET RATES UNCHANGED TRADERS AND INVESTORS HAD BEEN EXPECTING THE BUNDESBANK TO REDUCE THE RATE BY 05 PERCENTAGE POINT TO RELIEVE PRESSURE ON THE FRENCH FRANC AND OTHER WEAK CURRENCIES WITHIN THE ERM LARGELY DISREGARDING THE PLEAS OF ITS ERM PARTNERS THE BUNDESBANK HAS STEADFASTLY CONCENTRATED ON ADDRESSING ITS NEED TO REIN IN 43 GERMAN INFLATION AND ITS FASTGROWING MONEY SUPPLY BOTH OF WHICH ARE ASSOCIATED WITH THE SPIRALING COST OF BAILING OUT THE FORMER EAST GERMANY BECAUSE OF THE WAY THE ERM WORKS OTHER COUNTRIES CAN'T BOTH LOWER INTEREST RATES AND KEEP THEIR CURRENCIES WITHIN THEIR ERM BANDS UNLESS GERMANY DOES SO THE FRENCH FRANC THE CURRENCY OF EUROPE'S SECONDBIGGEST ECONOMY HAS BEEN THE MAIN FOCUS OF THE ERM STRUGGLE WITH INFLATION AT A VERY LOW 2 THREEMONTH FRENCH INTEREST RATES AT 88 AND UNEMPLOYMENT RUNNING AT A POSTWORLD WAR II HIGH OF 116 SPECULATORS DOUBT THAT FRANCE HAS THE WILLPOWER TO STAY WITH THE BUNDESBANK'S TIGHT MONETARY POLICY AND ALLOW ITS INTEREST RATES TO DECLINE ONLY GRADUALLY IN LINE WITH GERMANY'S FOR SEVERAL WEEKS SPECULATORS HAVE BEEN DUMPING THE FRENCH DANISH SPANISH PORTUGUESE AND BELGIAN CURRENCIES AND BUYING MARKS THEY WERE GAMBLING THAT ECONOMIC PRESSURES SUCH AS RISING UNEMPLOYMENT AND DEEPENING RECESSIONS WILL PREVENT THESE COUNTRIES FROM KEEPING INTEREST RATES WELL ABOVE THOSE IN GERMANY THE ATTACK ON THE ERM'S WEAKER CURRENCIES PICKED UP MOMENTUM FRIDAY DESPITE REPEATED EFFORTS BY NATIONAL MONETARY AUTHORITIES TO GAIN THE UPPER HAND THE BANQUE DE FRANCE FRANCE'S CENTRAL BANK AND THE BUNDESBANK ITS GERMAN COUNTERPART REPEATEDLY SOLD MARKS AND BOUGHT FRANCS IN AN ATTEMPT TO BOLSTER THE FRENCH FRANC AND KEEP IT FROM FALLING BELOW 34305 FRANCS TO THE MARK ITS LOWEST PERMITTED POINT UNDER ERM RULES THERE WAS ALSO HEAVY INTERVENTION BY EUROPE'S OTHER CENTRAL BANKS TO SUPPORT THE DANISH KRONE BELGIAN FRANC SPANISH PESETA AND PORTUGUESE ESCUDO IN ADDITION BELGIUM'S CENTRAL BANK RAISED SHORTTERM INTEREST RATES A FULL PERCENTAGE POINT OVERALL TRADERS AND ANALYSTS ESTIMATED THAT EUROPE'S CENTRAL BANKS SPENT THE EQUIVALENT OF BETWEEN 28 BILLION AND 45 BILLION TRYING TO HOLD THE BESIEGED ERM TOGETHER BY THE END OF EUROPEAN TRADING BEYOND WHICH CENTRAL BANKS AREN'T REQUIRED TO DEFEND THEIR CURRENCIES THE FRENCH FRANC WAS SITTING AT ITS ERM FLOOR AND WHILE THE BELGIAN SPANISH AND PORTUGUESE CURRENCIES REMAINED ABOVE THEIR LOWEST PERMITTED LEVELS THEY WERE ALL WEAKER ALTHOUGH IT ISN'T PART OF THE ERM THE SWEDISH KRONA WAS ALSO BATTERED TUMBLING TO A 10YEAR LOW AGAINST THE DOLLAR INTERVENTION PLUS 48HOUR INTEREST RATES THAT SOARED TO 20 FROM 14 ON THURSDAY HELPED BOOST THE DANISH KRONE A BIT BUT ONLY BARELY IN LATE FRIDAY TRADING THE DOLLAR STOOD AT 17425 MARKS AND 10470 YEN COMPARED WITH 17410 MARKS AND 10645 YEN LATE THURSDAY THE BRITISH POUND EDGED UP TO 14828 FROM 14820 A DAY EARLIER ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10487 YEN AND AT 17320 MARKS AT ONE POINT ON FRIDAY THE DOLLAR FELL TO A POSTWORLD WAR II LOW OF 10427 YEN THE PREVIOUS NADIR WAS 10482 YEN SET ON JUNE 15 INVESTORS FLEEING EUROPE'S CURRENCY TURMOIL HAVE TURNED TO THE YEN AS A HAVEN PROPELLING IT HIGHER AGAINST ALL OF THE WORLD'S MAJOR CURRENCIES INCLUDING THE MARK WHICH FELL TO A RECORD LOW 5985 YEN THE YEN IS ALSO UNDERPINNED BY JAPAN'S HUGE TRADE SURPLUS ANOTHER BENEFICIARY OF THE ERM CRISIS IS GOLD WHICH SOARED TO ITS HIGHEST LEVEL SINCE THE PERSIAN GULF WAR IN JANUARY 1991 ON THE COMMODITY EXCHANGE IN NEW YORK GOLD FOR CURRENT DELIVERY SETTLED AT 407 A TROY OUNCE AT THE SAME TIME SEVERAL EUROPEAN STOCK AND BOND MARKETS HAVE ROCKETED HIGHER ON INVESTORS' BELIEFS THAT THE ERM WOULD BREAK UP AND INTEREST RATES IN MANY COUNTRIES FALL SINCE WEDNESDAY FRENCH STOCKS HAVE SOARED 48 SPANISH SHARES 32 AND DANISH 26 THE BRITISH STOCK MARKET IS UP 15 SWEDEN 17 MEANWHILE GERMAN STOCKS FELL 17 AND AUSTRIAN SHARES 22 OVER THE SAME TWODAY PERIOD AS HAVE MANY OTHER INTERNATIONAL INVESTORS JOHN KOENEMAN MANAGING DIRECTOR OF KOENEMAN CAPITAL MANAGEMENT PTE LTD IN SINGAPORE HAS BEEN BUYING FRENCH STOCKS BUT HEDGING HIS CURRENCY RISK SO THAT HE HAS REPLACED HIS EXPOSURE TO THE FRENCH FRANC WITH GERMAN MARKS I DON'T LIKE THE FRENCH CURRENCY BUT I LIKE THE FRENCH STOCK MARKET HE SAID BEFORE THIS MORNING'S AGREEMENT WAS REACHED MR O'SHEA A FORMER IRISH CENTRAL BANKER PREDICTED THAT ONE OPTION THE CENTRAL BANKS WOULD TRY WOULD BE TO WIDEN THE BANDS AGAINST WHICH EACH ERM CURRENCY IS ALLOWED TO FLUCTUATE MAKING THE ERM MORE FLEXIBLE BUT HE SAID THAT THIS WILL PROVE ONLY A HOLDING OPERATION AND IS UNLIKELY TO PERMIT SUFFICIENT RATE REDUCTIONS IN THE NONGERMAN CORE OF EUROPE ONE REASON IS THAT WIDER BANDS ARE ANTITHETICAL TO THE CONCEPT OF EUROPEAN INTEREST RATES AND CURRENCIES CONVERGING EVENTUALLY TOWARD A SINGLE CURRENCY MR O'SHEA SAID THAT EC GOVERNMENTS WILL DO EVERYTHING THEY CAN TO HOLD ONTO THE ERM THESE AREN'T JUST ECONOMIC NUMBERS AND A COUPLE OF PRICES PEOPLE ARE TALKING ABOUT HE SAYS THERE'S AN ENTIRE EUROPEAN DREAM THE POSTWAR VISION OF EUROPEAN UNITY AND A LOT OF POLITICAL CAREERS AT STAKE HERE BUT UBS'S MR CHERTKOW QUESTIONED THAT THE DREAM WAS STILL A VIABLE ONE THIS MORNING'S FEEBLE ATTEMPT TO PATCH TOGETHER THE ERM SETS BACK THE PATH TOWARD MONETARY UNION HE SAID FIFTEEN PERCENT BANDS CAN HARDLY BE CONSIDERED A STEP TOWARD MONETARY UNION THE CURRENT ERM TURMOIL RECALLS A SIMILAR CRISIS LAST FALL WHEN SPECULATIVE SELLING IN SEPTEMBER FORCED BRITAIN AND ITALY TO TAKE THE POUND AND LIRA OUT OF THE SYSTEM ALSO SPAIN PORTUGAL AND IRELAND WERE FORCED TO DEVALUE THEIR CURRENCIES ALONG WITH FINLAND SWEDEN AND NORWAY WHICH ALTHOUGH NOT IN THE ERM UNOFFICIALLY LINKED THEMSELVES TO IT EVEN SO THERE IS ONE BIG DISSIMILARITY THIS IS THE FIRST ERM CRISIS WHICH HASN'T BEEN TRIGGERED BY DIFFERENCES IN ECONOMIC FUNDAMENTALS WHICH INDICATED A COUNTRY WAS UNCOMPETITIVE OR THAT WASN'T TRIGGERED BY POLITICAL EVENTS CALLING FOR A POLICY CHANGE SAID MR CHERTKOW RATHER THIS CRISIS HAS BEEN GENERATED BY THE BELIEF THAT THE BUNDESBANK CANNOT OR WILL NOT REDUCE ITS INTEREST RATES SUFFICIENTLY TO FACILITATE CUTS IN INTEREST RATES IN COUNTRIES WHERE UNEMPLOYMENT IS HIGH AND INFLATION IS LOW PARTICULARLY IN FRANCE AND DENMARK UNLIKE THE POUND AND LIRA LAST FALL THE FRENCH FRANC AND DANISH KRONE AREN'T CONSIDERED TO BE OVERVALUED THAT'S BECAUSE BOTH COUNTRIES HAVE MUCH HIGHER INTEREST RATES SUBSTANTIALLY LOWER INFLATION AND RELATIVELY SOUNDER ECONOMIES THAN GERMANY NONETHELESS MR O'SHEA REMAINED SKEPTICAL OF THIS WEEKEND'S LONG DRAWNOUT ATTEMPT TO SOLVE EUROPE'S CURRENCY MALAISE ANY LASTMINUTE ATTEMPT TO PAPER OVER THE FAULT LINES WON'T HAVE ANY CREDIBILITY IN THE MARKETPLACE HE SAID MARTIN DU BOIS IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9308020011 930802 ECONOMY US RECOVERY FLUCTUATES AMONG AREAS MOUNTAIN MIDWEST SOUTH FARE THE BEST BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NOT ALL REGIONS OF THE US ARE RECOVERING FROM THE RECESSION AT THE SAME PACE ONLY THE MOUNTAIN MIDWEST AND SOUTHERN SECTIONS HAVE TRULY RECOVERED FROM THE RECESSION ACCORDING TO A STUDY RELEASED TODAY BY THE CONFERENCE BOARD IN NEW YORK OTHER PARTS OF THE US NOTABLY THE MIDDLE ATLANTIC NEW ENGLAND AND PACIFIC REGIONS REMAIN IN A SLUMP THE STUDY SAID THE CONFERENCE BOARD'S RESEARCH HIGHLIGHTS YET ANOTHER ODDITY ABOUT THIS ECONOMIC RECOVERY WHICH IS MORE THAN TWO YEARS IN PROGRESS NOT ONLY IS IT ONE OF THE SLOWEST ON RECORD WITH VERY WEAK EMPLOYMENT GAINS BUT IT HAS ALSO GRACED SOME STATES A WHOLE LOT MORE THAN OTHERS BY CONTRAST IN THE 1982 RECESSION ALL REGIONAL ECONOMIES BOTTOMED OUT AT ABOUT THE SAME TIME AND THEIR RATES OF GROWTH DURING THE RECOVERY WERE FAIRLY SIMILAR ANALYSTS SAY ONE REASON FOR THE DISPARITY AMONG REGIONS IS THAT THE FEDERAL GOVERNMENT HASN'T USED MUCH FISCAL STIMULUS TO JUMPSTART THE ECONOMY THE GLOBAL MARKETPLACE HAS ALSO PLAYED A ROLE REGIONS OF THE US ARE MORE EXPOSED TO GLOBAL MARKET FORCES THAN IN THE PAST PRODUCING SHARP DIFFERENCES IN ECONOMIC PERFORMANCE SAID CONFERENCE BOARD ECONOMIST JASON BRAM THE CONFERENCE BOARD BASED ITS FINDINGS ON A NEWLY DEVELOPED REGIONAL PERFORMANCE INDEX THE INDEX IS MADE UP OF FIVE INDICATORS HOUSING PERMITS EMPLOYMENT CONSUMER CONFIDENCE RETAIL SALES AND HELPWANTED ADVERTISING THE REGIONS OF THE COUNTRY THAT HAVE IMPROVED THE MOST SINCE THE TROUGH OF THE RECESSION TEND TO HAVE LOWER COSTS OF LIVING THESE AREAS IN GENERAL HAVE ALSO SEEN GROWTH IN MANUFACTURING JOBS DESPITE A NATIONAL DECLINE THE SOUTHEAST FOR EXAMPLE HAS ADDED 23000 FACTORY POSITIONS OVER THE PAST TWO YEARS ACCORDING TO FIRST UNION CORP A BANKING COMPANY BASED IN CHARLOTTE NC SEPARATELY THE COMMERCE DEPARTMENT SAID DISPOSABLE PERSONAL INCOME DROPPED 01 IN JUNE AFTER A STRING OF INCREASES SPENDING HOWEVER JUMPED A SOLID 06 THE FIGURES ARE ADJUSTED FOR INFLATION THE STRONG SPENDING WITH NO INCOME GAINS CAUSED THE SAVINGS RATE TO DROP TO 39 OF INCOME IN JUNE FROM 46 THE MONTH BEFORE TOTAL PERSONAL INCOME WITHOUT ADJUSTMENT FOR INFLATION AMOUNTED TO 5296 TRILLION IN JUNE LITTLE CHANGED FROM A REVISED 5299 TRILLION IN MAY IN A SEPARATE REPORT THE COMMERCE DEPARTMENT ALSO SAID HOME SALES ROSE A STRONG 11 IN JUNE CONTINUING A SEESAW PATTERN OF MORE THAN A YEAR IN MAY HOME SALES DROPPED A REVISED 125 THE DECLINE WAS ORIGINALLY REPORTED AS 21 AND IN APRIL THEY JUMPED NEARLY 16 ALL REGIONS OF THE COUNTRY EXCEPT THE WEST HAD BETTER SALES IN JUNE THAN IN MAY THE FACT THAT HOME SALES HAVEN'T SHOWN MORE CONSISTENT GAINS IN LIGHT OF THE LOWEST INTEREST RATES IN MORE THAN TWO DECADES IS PUZZLING TO MANY ECONOMISTS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS GROWTH IN THE CONFERENCE BOARD'S REGIONAL PERFORMANCE INDEX SINCE THE TROUGH OF THE RECESSION MARCH 1991 BY REGION RHODE ISLAND VERMONT +01 SOUTH ATLANTIC DELAWARE MARYLAND DISTRICT OF COLUMBIA VIRGINIA WEST VIRGINIA NORTH CAROLINA SOUTH CAROLINA GEORGIA FLORIDA +31 9308020010 930802 BUSINESS BRIEF SHELL OIL SECONDQUARTER NET ROSE 17 ON REFINING BUSINESS HIGHER GAS PRICES HOUSTON SHELL OIL CO SAID NET INCOME SURGED 17 AND OPERATING PROFIT NEARLY TRIPLED ON THE BACK OF A STRONG IMPROVEMENT IN THE REFINING BUSINESS AND HIGHER NATURAL GAS PRICES SHELL ONE OF THE LARGEST OIL COMPANIES IN THE US IS A SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP AND REPORTS ITS EARNINGS AHEAD OF THE GROUP IN THE SECOND QUARTER NET INCOME ROSE TO 203 MILLION FROM 173 MILLION WHICH INCLUDED GAINS OF 100 MILLION FROM THE RESOLUTION OF SEVERAL TAX CASES REVENUE WAS FLAT AT 545 BILLION THE RESULTS CONTINUE A STRING OF SEVERAL IMPROVED QUARTERS FOR THE COMPANY WHICH UNDERWENT A WRENCHING RESTRUCTURING RECENTLY TO IMPROVE PROFITABILITY AT ITS REFINING AND MARKETING BUSINESS AND TO REIN IN AN EXPLORATION AND PRODUCTION OPERATION THAT WAS OVERLY OPTIMISTIC ON ENERGY PRICES OPERATIONAL IMPROVEMENTS WERE EVIDENT IN ALL THREE OF OUR PRINCIPAL BUSINESSES SAID PHILIP J CARROLL PRESIDENT BUT WITH CONTINUING INTENSE COMPETITION AND WEAKER CRUDE OIL PRICES IT IS ESSENTIAL THAT WE AGGRESSIVELY SEEK NEW OPPORTUNITIES TO IMPROVE OUR PROFITABILITY SHELL'S OPERATING PROFIT FROM ITS REFINING AND MARKETING BUSINESS SURGED TO 83 MILLION IN THE QUARTER FROM 14 MILLION THE COMPANY SAID ITS REFINERIES HAD A LOWER LEVEL OF MAINTENANCE SHUTDOWNS AND ALSO BENEFITED FROM NEW EQUIPMENT AT ITS NORCO LA PLANT A 1988 EXPLOSION AT NORCO LEVELED MUCH OF THE REFINERY AND SHELL HAS SPENT SEVERAL YEARS REBUILDING IT IN FACT THE COMPANY SAID ITS CAPITAL EXPENDITURES IN THE FIRST HALF DECLINED TO 819 MILLION FROM 988 MILLION IN THE 1992 FIRST HALF LARGELY BECAUSE OF REDUCED SPENDING IN ITS REFINING AND MARKETING BUSINESS BUT SPENDING ON OIL AND NATURAL GAS EXPLORATION ROSE IN THE FIRST HALF OVERALL SHELL SAID THAT IT EXPECTS TO SPEND 26 BILLION ON CAPITAL AND EXPLORATORY EXPENDITURES FOR ALL OF 1993 400 MILLION LESS THAN PREVIOUSLY ANNOUNCED A COMPANY SPOKESMAN SAID THAT NO PROJECTS WERE CANCELED BUT THAT THE COMPANY WAS SLOWING THE RATE OF SPENDING OIL AND GAS PRODUCTION PROFIT IN THE SECOND QUARTER ROSE 21 TO 133 MILLION SHELL CREDITED LOWER OPERATING COSTS AND SHARPLY HIGHER NATURAL GAS PRICES UNLIKE OTHER MAJOR US OIL COMPANIES SHELL ALSO RECORDED A BIG JUMP IN CHEMICAL PROFIT TO 28 MILLION FROM 15 MILLION THE COMPANY SAID SALES VOLUMES ROSE BUT ADDED THAT THE COMMODITY CHEMICAL BUSINESS REMAINS DEPRESSED 9308020009 930802 FATE SEEMED TO HAVE A GERSTNER IN MIND FOR TOP JOB AT IBM RICHARD WAS ON THE FAST TRACK FELL ILL SAW BROTHER SCORE ROOTING FROM THE SIDELINES BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL ONE MORNING IN TOKYO RICHARD GERSTNER FOUND HIMSELF DOUBLED OVER WITH SEARING PAIN IN HIS BACK AND NECK MR GERSTNER'S DOCTOR TOLD HIM THE RIGORS OF HIS BRUTAL TRAVEL SCHEDULE HAD DAMAGED A CERVICAL DISK IN FACT THAT DIAGNOSIS WAS WRONG HE WOULD SPEND THE NEXT FOUR YEARS WANDERING FROM DOCTOR TO DOCTOR BAFFLED BY AN AILMENT THAT WAS RAVAGING HIM WITH PAIN MR GERSTNER TRIED TO CONVINCE HIMSELF THAT HE COULD KEEP UP HIS FASTTRACK CAREER BUT BY 1989 THE TORMENT HAD BECOME SO INTENSE HE COULDN'T GO TO WORK SOME MORNINGS FINALLY THAT YEAR AFTER KEELING OVER AND PASSING OUT IN THE MIDDLE OF A MEETING HE GAVE UP AND QUIT IBM MISERABLE ABOUT LEAVING SO CLOSE TO THE TOP PRIZE MR GERSTNER ULTIMATELY STUMBLED ON AN UNEXPECTED EXPLANATION FOR HIS ILLNESS THIS YEAR ALMOST FULLY CURED HE SET OUT TO RETURN TO IBM OR ANOTHER HIGHTECH COMPANY BUT IBM'S SUCCESSION STORY HAD TAKEN A STUNNING TURN THAT MR GERSTNER NEVER ANTICIPATED HIS YOUNGER BROTHER LOUIS WHO HAD NEVER WORKED A DAY AT IBM OR ANY OTHER COMPUTER COMPANY WAS PARACHUTING IN TO TAKE THE TOP JOB RICHARD GERSTNER HAD SPENT HIS LIFE PREPARING FOR IT'S AN IRONIC TWIST RICHARD GERSTNER ADMITS IN HIS FIRST INTERVIEW SINCE LEAVING IBM I'M A GUY A LOT OF PEOPLE THOUGHT WAS GOING TO RUN THE BUSINESS I DIDN'T AND HE DID THAT'S THE WAY LIFE HAS DEALT OUT THE CARDS THE GERSTNER BROTHERS ARE CORDIAL DRIVEN AND NOW AT A SOMEWHAT AWKWARD TURN IN THEIR RELATIONSHIP RICHARD GERSTNER 54 STILL WIDELY CONSIDERED ONE OF THE MOST INCISIVE COMPUTER EXECUTIVES OF HIS GENERATION THOUGHT FOR A WHILE THAT HE MIGHT BECOME A CONSULTANT FOR LOUIS BUT LOUIS 51 DIDN'T MAKE HIM AN OFFER RICHARD SAYS HE WOULD BE HAPPY TO OFFER LOUIS ADVICE LOUIS HASN'T ASKED FOR ANY I WISH HIM WELL SAYS RICHARD GERSTNER WHO LIVES WITH HIS WIFE MARY JOETTE IN A HOUSE BY A LAKE IN STAMFORD CONN IF HE WANTS TO PICK UP THE PHONE WANTS MY TWO CENTS I'M HAPPY TO GIVE IT TO HIM LOUIS GERSTNER DECLINES TO COMMENT RICHARD GERSTNER'S SINGULAR ODYSSEY BEGAN IN MINEOLA NY WHERE HE WAS THE OLDEST OF FOUR BOYS THEIR FATHER LOUIS GERSTNER SR WAS A NIGHT SUPERINTENDENT AT THE LOCAL SCHAEFER BREWERY THEIR MOTHER MARJORIE WORKED IN THE REGISTRAR'S OFFICE AT A COMMUNITY COLLEGE NEITHER PARENT HAD GONE TO COLLEGE BUT ALL FOUR BROTHERS BECAME STANDOUTS AT CHAMINADE HIGH SCHOOL A LOCAL CATHOLIC BOYS' SCHOOL THE PARENTS DROVE THEIR KIDS TO ACHIEVE ACHIEVE ACHIEVE RICHARD GERSTNER REMEMBERS THE GERSTNER BOYS ALL RACED ON TO COLLEGE AND GRADUATE SCHOOL AND STAKED OUT TOP JOBS ACROSS AMERICAN INDUSTRY JAMES WAS AN EXECUTIVE AT BRISTOLMYERS SQUIBB CO WHEN HE DIED LAST YEAR JOSEPH BECAME A BROADCASTING LAWYER FOR WESTINGHOUSE ELECTRIC CORP LOUIS THE SECONDOLDEST GRADUATED FROM THE HARVARD BUSINESS SCHOOL IN 1965 AND BECAME ONE OF THE YOUNGEST DIRECTORS EVER OF MCKINSEY & CO THE MANAGEMENT CONSULTING FIRM A HARDCHARGING CORPORATE STRATEGIST HE MOVED ON TO AMERICAN EXPRESS CO IN 1978 AND EVENTUALLY ROSE TO ITS PRESIDENCY HE LEFT IN 1989 TO TAKE THE CHAIRMAN'S JOB AT RJR NABISCO THEN IN THE SPOTLIGHT AS IT WENT THROUGH THE BIGGEST LEVERAGED BUYOUT EVER RICHARD GERSTNER SAYS HE AND LOUIS HAVE ALWAYS GOTTEN ALONG FINE BUT HE ADDS WE WERE NOT CLOSE YOU KNOW GETTING TOGETHER EVERY WEEKEND BECAUSE OF OUR BUSINESS COMMITMENTS THEY SAW EACH OTHER ON HOLIDAYS AND SOMETIMES MET AT AIRPORTS IF THEIR EXHAUSTING TRAVEL SCHEDULES INTERSECTED WHEN RICHARD GERSTNER'S BACK PAIN BEGAN IBM FLEW HIM TO YALENEW HAVEN HOSPITAL BY THE TIME HE GOT THERE HIS RIGHT ARM WAS GOING NUMB THE YALE DOCTORS PUT HIM ON STEROIDS AND SENT HIM BACK TO TOKYO THE PAIN CAME AND WENT OFFERING ENOUGH RESPITES FOR MR GERSTNER TO WRAP UP HIS JOB IN ASIA AND TAKE ANOTHER HOT POSITION HEAD OF IBM'S PERSONALCOMPUTER DIVISION I TRIED TO DECLARE MYSELF WELL HE SAYS I HAD AN ABILITY TO FAKE THIS THING BUT BY THE TIME I GOT HOME I'D JUST COLLAPSE A FEW MONTHS INTO HIS NEW JOB IN THE MIDDLE OF A MORNING STRATEGY MEETING HE FELT A TERRIBLE THUD IN HIS CHEST AND PASSED OUT HIS COLLEAGUES RUSHED HIM TO THE HOSPITAL SUSPECTING A HEART ATTACK AFTER A SPELL OF 15HOUR WORKDAYS BUT DOCTORS TOLD MR GERSTNER HIS HEART WAS FINE AND HIS COLLAPSE WAS A COMPLETE MYSTERY IN 1990 HE FINALLY HAD BACK SURGERY THROUGH AN INCISION IN THE FRONT OF HIS NECK DOCTORS REMOVED THE FIFTH DISK OF HIS SPINE WHEN THE ANESTHETIC WORE OFF DOCTORS WERE STUNNED TO FIND THAT MR GERSTNER'S RIGHT HAND WAS TOTALLY PARALYZED FOR NO APPARENT REASON A YEAR LATER HE HAD A SECOND SEVENHOUR BACK OPERATION NOTHING WORKED IN FEBRUARY 1992 MARY JOETTE GERSTNER RAN INTO ANOTHER IBM EMPLOYEE'S WIFE AND RECOUNTED HER HUSBAND'S ORDEAL THE OTHER WOMAN'S EYES WIDENED SHE HERSELF HAD SUFFERED MANY OF THE SAME SYMPTOMS AND FINALLY FOUND AN ACCURATE DIAGNOSIS IT'S LYME DISEASE SHE TOLD MRS GERSTNER NO ONE HAD EVER MENTIONED THE TICKBORNE INFECTION WIDESPREAD IN THE CONNECTICUT AND LONG ISLAND WOODS WHERE MR GERSTNER SPENT HIS VACATIONS GARDENING A NEW DOCTOR QUICKLY CONFIRMED THE DIAGNOSIS AND PUT MR GERSTNER ON ANTIBIOTICS HE ALSO TOLD HIM TO STAY AWAY FROM STEROIDS WHICH DEPRESS THE IMMUNE SYSTEM AND CAN MAKE INFECTIONS EVEN WORSE BY EARLY 1993 HE WAS ALMOST ENTIRELY RECOVERED AND READY TO GO BACK TO WORK HE BEGAN SURVEYING THE LANDSCAPE AT HIS FORMER COMPANY AND INDUSTRY IBM WAS IN TURMOIL CHAIRMAN JOHN AKERS WAS RESIGNING SUCCUMBING TO BILLIONS IN LOSSES AND A STOCK IN FREE FALL THE FOUR OTHER WOULDBE CHAIRMEN OF RICHARD GERSTNER'S AGE GROUP HAD ALL QUIT OR BEEN FORCED OUT IN THE PRESS COVERAGE OF CANDIDATES FOR THE NEW IBM CHAIRMAN MR GERSTNER SUDDENLY BEGAN READING HIS YOUNGER BROTHER'S NAME IBM FORMALLY ANNOUNCED LOUIS GERSTNER'S APPOINTMENT AT A NEW YORK HOTEL BALLROOM ON MARCH 26 AT HIS PRESS CONFERENCE A REPORTER ASKED WHETHER HE PLANNED TO BRING HIS OLDER BROTHER BACK TO IBM MY BROTHER IS RETIRED FROM IBM HE SAID I WILL REACH OUT TO EVERYONE I CAN TO HELP ME UNDERSTAND THIS COMPANY I HAVE NO PLANS REGARDING MY BROTHER'S RETURN RICHARD GERSTNER SAYS HE UNDERSTANDS LOUIS'S RELUCTANCE TO GIVE HIM A VISIBLE ROLE AT IBM THERE ARE ISSUES OF NEPOTISM MOREOVER HE ADDS WHETHER I AM OR NOT I'M SORT OF IDENTIFIED WITH THE CROWD THAT GOT IBM IN TROUBLE RIGHT HE THINKS LOUIS WILL DO A SUPERB JOB AT MAKING IBM'S SPRAWLING ORGANIZATION RUN BETTER THAN BEFORE BUT WARNS THAT HE WILL NEED ADVICE TO UNDERSTAND THE BREAKNECK CHANGES IN THE COMPUTER INDUSTRY YOU CAN DO ALL THESE THINGS RIGHT HE SAYS BUT IF YOU'RE AIMING AT THE WRONG BUSINESS YOU HAVE A WELLOILED MACHINE GOING OVER A CLIFF LAST WEEK LOUIS GERSTNER TOOK A COLOSSAL WHACK AT THE IBM ORGANIZATION WRITING OFF 89 BILLION IN PEOPLE AND BUILDINGS BUT HE BRUSHED OFF QUESTIONS ABOUT HIS LONGTERM STRATEGY DECLARING THE LAST THING IBM NEEDS RIGHT NOW IS A VISION RICHARD GERSTNER THINKS THAT WAS A PERFECTLY GOOD ANSWER VISIONS ARE INTERESTING BUT THE COMPANY IS FUNDAMENTALLY INEFFICIENT HE SAYS STILL HE ADDS I DON'T THINK A YEAR FROM NOW HE CAN SING FROM THE SAME HYMN BOOK HE IS ROOTING FOR A TURNAROUND AT IBM NOT JUST FOR HIS BROTHER BUT ALSO FOR HIS DAUGHTER AND SONINLAW WHO WORK THERE TOO FOR HIMSELF HE IS BUSY REOPENING HIS VAST NETWORK OF HIGHTECH CONTACTS AND HUNTING FOR A YOUNG TECHNOLOGY COMPANY TO RUN HE SAYS HE HAS FINALLY REACHED THE POINT WHERE HE CAN LOOK BACK AT HIS NIGHTMARE WITHOUT PAIN I'M NOT BITTER HE SAYS IT HAPPENED THERE MUST BE A REASON FOR IT HAPPENING 9308020008 930802 MARKETING & MEDIA TELEMUNDO GROUP AGREES ON A FILING UNDER CHAPTER 11 BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TELEMUNDO GROUP INC AGREED TO FILE FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE AFTER REACHING AN ACCORD WITH THE CREDITORS ON A PLAN FOR RESTRUCTURING THE COMPANY THE SPANISHLANGUAGE TELEVISION BROADCASTER WHOSE MAJORITY SHAREHOLDER IS RELIANCE GROUP HOLDINGS INC DEFAULTED ON ITS DEBT CURRENTLY VALUED AT MORE THAN 300 MILLION IN JANUARY 1992 AND HAS BEEN WORKING OUT A RESTRUCTURING SINCE THEN TELEMUNDO SAID ITS CONSENT IS IN RESPONSE TO THE JUNE FILING BY JUNIOR BONDHOLDERS OF AN INVOLUNTARY CHAPTER 11 PETITION UNDER TERMS OF THE AGREEMENT ALL OF TELEMUNDO'S EXISTING DEBT WILL BE CANCELED IN EXCHANGE FOR THE COMPANY'S ISSUANCE TO CREDITORS OF ABOUT 35 MILLION IN CASH NEW SENIOR NOTES REORGANIZED TELEMUNDO COMMON STOCK AND WARRANTS TO BUY ADDITIONAL COMMON SHARES OF THE REORGANIZED CONCERN TELEMUNDO'S INDEBTEDNESS WILL BE CUT TO 100 MILLION LESS THAN ONETHIRD OF ITS CURRENT LEVEL WITH THE NEW DEBT SPREAD AMONG EXISTING SENIOR BONDHOLDERS LED BY FORMER DREXEL BURNHAM LAMBERT EXECUTIVE LEON BLACK'S APOLLO GROUP LTD WHICH WILL BECOME THE SINGLE LARGEST SHAREHOLDER THE SENIOR BONDHOLDERS WILL END UP CONTROLLING ABOUT 555 OF THE COMPANY EXISTING SHAREHOLDERS' COMMON STOCK WILL BE EXTINGUISHED AND EXISTING SHAREHOLDERS WILL HAVE THE OPPORTUNITY TO BUY 145 OF THE COMMON STOCK TO BE ISSUED UNDER THE REORGANIZATION PLAN AT A PRICE THAT VALUES THE COMPANY AT ABOUT 70 MILLION JUNIOR BONDHOLDERS WILL HAVE THE OPTION OF CONVERTING THEIR DEBT TO COMMON STOCK TOTALING AS MUCH AS 30 OF THE NEW COMMON STOCK OUTSTANDING AND WARRANTS RELIANCE HAS AGREED TO ACT AS STANDBY PURCHASER OF ANY COMMON STOCK THAT ISN'T ACQUIRED BY THE COMPANY'S OTHER SHAREHOLDERS AND IS EXPECTED ALSO TO TAKE SOME OF THE STOCK THAT ISN'T ACQUIRED BY THE JUNIOR BONDHOLDERS AS A RESULT RELIANCE IS EXPECTED TO END UP CONTROLLING 145 TO 175 OF THE COMPANY TELEMUNDO PRESIDENT JOAQUIN BLAYA SAID IN A STATEMENT THAT THE COMPANY EXPECTS THE CHAPTER 11 CASE TO BE SHORT AND THAT DURING THE DURATION BUSINESS WILL BE UNAFFECTED WILBUR L ROSS JR AN INVESTMENT BANKER WITH ROTHSCHILD INC A FINANCIAL ADVISER FOR THE JUNIOR BONDHOLDER GROUP SAID THE PLAN ISN'T EXPECTED TO HAVE ANY EFFECT ON ADVERTISERS VIEWERS OR EMPLOYEES THE PLAN IS SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION APPROVAL BECAUSE CONTROL OF TELEMUNDO'S SEVEN TELEVISION STATIONS WILL CHANGE TELEMUNDO ALSO OPERATES A NETWORK REACHING 85 OF US HISPANIC TV HOUSEHOLDS 9308020007 930802 BUSINESS BRIEF WOODSIDE PETROLEUM LTD SECONDQUARTER SALES ROSE 43 FOR AUSTRALIAN COMPANY WOODSIDE PETROLEUM LTD AN AUSTRALIAN OIL AND GAS PRODUCER SAID SECONDQUARTER SALES ROSE 43 TO 137 MILLION AUSTRALIAN DOLLARS US931 MILLION FROM A96 MILLION A YEAR EARLIER WOODSIDE IS A JOINTVENTURE PARTNER AND OPERATOR OF THE NORTH WEST SHELF NATURAL GAS PROJECT OFF THE NORTHERN COAST OF WESTERN AUSTRALIA THE COMPANY SAID IN A STATEMENT THAT GAS PRODUCTION AT THE NORTH WEST SHELF PROJECT ROSE MARGINALLY IN THE SECOND QUARTER FROM A YEAR EARLIER ITS SHARE OF NATURAL GAS PRODUCTION AT THE PROJECT ROSE TO 4269 MILLION CUBIC METERS FOR THE QUARTER FROM 4238 MILLION CUBIC METERS A YEAR EARLIER WOODSIDE'S SHARE OF LIQUEFIED NATURAL GAS PRODUCTION ROSE TO 211293 METRIC TONS FROM 177141 TONS CONDENSATE OUTPUT ROSE MARGINALLY TO 134 MILLION LITERS 9308020006 930802 BUSINESS BRIEF CREDIT BANK GREEK BANK TO FORM FIRM IN ROMANIA WITH EBRD GREECE'S CREDIT BANK SAID IN ATHENS THAT IT IS SETTING UP THE FIRST ROMANIAN BANK TO BE FOUNDED ENTIRELY WITH FOREIGN CAPITAL THE MOVE IS BEING TAKEN WITH THE EUROPEAN BANK OF RECONSTRUCTION AND DEVELOPMENT CREDIT BANK WILL HAVE A 60 STAKE IN THE NEW VENTURE WHILE THE EBRD WILL HAVE 25 THE REMAINING 15 WILL BE HELD BY A CREDIT BANK SUBSIDIARY ALPHA FINANCE OF GREECE ALPHA DESIGNED THE NEW BANK'S ORGANIZATIONAL STRUCTURE THE NEW VENTURE WHICH HAS BEEN NAMED BANK OF BUCHAREST WILL HAVE ALPHA'S MANAGING DIRECTOR PANAGIS VOURLOUMIS AS ITS CHAIRMAN 9308020005 930802 THE OUTLOOK WHAT ALAN GREENSPAN MEANT ABOUT RATES BY DAVID WESSEL WASHINGTON FOR 10 MONTHS FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS KEPT HIS HANDS OFF THE INTERESTRATE LEVER WHEN THE RECOVERY SPUTTERED JUST BEFORE LAST NOVEMBER'S ELECTION MR GREENSPAN REFUSED TO CUT SHORTTERM INTEREST RATES DESPITE PLEAS FROM SEVEN OF THE 12 REGIONAL FED BANKS WHEN AN INFLATION SCARE SPOOKED THE BOND MARKET EARLIER THIS YEAR MR GREENSPAN DIDN'T RAISE RATES ALTHOUGH HE PROBABLY WOULD HAVE HAD THERE BEEN ONE MORE BAD MONTH OF INFLATION NEWS AFTER LISTENING TO MR GREENSPAN'S RECENT TESTIMONY BEFORE CONGRESS FINANCIAL MARKETS CONCLUDED THAT THE CHAIRMAN'S FINGERS MAY BE GETTING ITCHY BUT THE MARKETS MAY NOT HAVE BEEN LISTENING CAREFULLY MR GREENSPAN ISN'T NEARLY AS HARD TO UNDERSTAND AS SOME PEOPLE SAY YES HIS SENTENCES ARE CONVOLUTED TAKE THIS ONE PATENTLY THE OVERALL ECONOMIC EFFECT OF FISCAL POLICY ESPECIALLY WHEN COMBINED WITH THE UNCERTAINTIES OF THE FORTHCOMING HEALTHREFORM PACKAGE HAS IMPARTED A NUMBER OF UNCONVENTIONAL UNKNOWNS TO THE ECONOMIC OUTLOOK BUT HIS CURRENT MESSAGE IS CLEAR THE SHORTTERM INTEREST RATES THAT THE FED CONTROLS ADJUSTED FOR INFLATION ARE NEAR ZERO IN A GROWING ECONOMY THAT IS TOO LOW THE FED IS GOING TO RAISE SHORTTERM INTEREST RATES ONE OF THESE DAYS HE DIDN'T SAY WHEN HE PROBABLY DOESN'T KNOW WHEN THE FED WILL MOVE SOONER IF INFLATION RAISES ITS UGLY HEAD IT WILL MOVE LATER IF INFLATION BEHAVES THIS SHOULDN'T COME AS A SURPRISE EVEN THE WHITE HOUSE WHICH IS COUNTING ON THE FED AND THE BOND MARKET TO KEEP INTEREST RATES LOW TO OFFSET THE DRAG OF TAX INCREASES AND SPENDING CUTS ANTICIPATES A RISE IN INTEREST RATES IF THE ECONOMY CONTINUES TO IMPROVE THE ADMINISTRATION'S FEBRUARY ECONOMIC FORECAST SOON TO BE UPDATED SHOWS THAT IT EXPECTS SHORTTERM INTEREST RATES TO CLIMB ABOUT HALF A PERCENTAGE POINT OVER THE NEXT YEAR OR SO BUT AT A MOMENT WHEN EVERYONE FROM PRESIDENT CLINTON ON DOWN IS POINTING TO THE BOND MARKET RALLY AS A REASON TO PASS AN UNPOPULAR TAX BILL THE ADMINISTRATION AND ITS CONGRESSIONAL ALLIES WERE DISAPPOINTED TO HEAR MR GREENSPAN USE WORDS THAT RATTLED MARKETS AND PUSHED UP LONGTERM RATES WITH A WHOLE HOST OF THINGS INDICATING THAT THERE IS NO PROBLEM WITH INFLATION HE STILL SEEMED TO BE CONTEMPLATING DOING BATTLE WITH A PHANTOM INFLATION COMPLAINED SEN JAMES SASSER A TENNESSEE DEMOCRAT MR GREENSPAN DID TAKE A TOUGH LINE AGAINST INFLATION JARRING MARKETS WHEN THERE SEEMS TO BE LITTLE REASON TO WORRY ABOUT IT HE PROBABLY HAD TWO MOTIVES HE SEES NO REASON TO ANTICIPATE A SURGE IN INFLATION BUT HE CAUTIONED THAT PRICES AND WAGES DON'T SEEM TO BE BEHAVING AS HE HAD EXPECTED IF THEY WERE LABOR COSTS WOULD HAVE FALLEN OVER THE PAST YEAR AND A HALF INSTEAD THEY ARE FLAT MR GREENSPAN SOUGHT TO SIGNAL THAT THE FED WILL POUNCE IF IT SEES SIGNS THAT INFLATION IS MOVING UP SIGNS THAT COULD COME AS EARLY AS MIDAUGUST WITH THE CONSUMER AND PRODUCER PRICE FIGURES HE SAID NOTHING THAT SUGGESTS HE INTENDS TO STRANGLE THE ECONOMY TO RAPIDLY REDUCE THE INFLATION RATE FURTHER MR GREENSPAN'S RHETORIC ALSO WAS AIMED AT REASSURING SOME OTHER FED POLICY MAKERS WHOSE TRIGGER FINGERS ARE QUICKER THAN HIS WHILE MR GREENSPAN'S INSTINCTS ARE TO WAIT FOR MORE DATA SOME OF HIS COLLEAGUES ARE CONVINCED IT IS TIME TO RAISE INTEREST RATES BUT WITH THE VIGOR OF THE ECONOMIC RECOVERY STILL IN QUESTION THEY WILL HAVE A HARD TIME PERSUADING HIM TO RAISE RATES IN THE IMMEDIATE FUTURE PROVIDED THE BOND MARKET ISN'T FRETTING ABOUT INFLATION AND THE VARIOUS INFLATION READINGS STAY REASSURING THE DOWNWARD TREND OF EUROPEAN INTEREST RATES WHICH TENDS TO STRENGTHEN THE DOLLAR ALLOWS THE FED TO WAIT AND DESPITE MR GREENSPAN'S PASSING REFERENCE TO THE RECENT INCREASE IN GOLD PRICES THE FED IS UNLIKELY TO RAISE RATES FOR THAT REASON ALONE THE FED CHAIRMAN SOUNDED SURPRISINGLY CONFIDENT ABOUT THE STRENGTH OF THE ECONOMY ESTIMATING INCORRECTLY IT TURNED OUT THAT ECONOMIC GROWTH TOPPED A 25 RATE IN THE SECOND QUARTER AND NOW IS RUNNING AT 3 THE UNDERLYING FORCES AT WORK ARE KEEPING THE ECONOMY GENERALLY ON A MODERATE UPWARD TRACK HE SAID HE COULD HARDLY HAVE SAID OTHERWISE GIVEN THAT HE WAS TALKING ABOUT RAISING INTEREST RATES AND LECTURING CONGRESS ON THE IMPERATIVE OF PASSING A DEFICITREDUCTION BILL NOW MR GREENSPAN AND FED VICE CHAIRMAN DAVID MULLINS AS WELL EXPECT THE ECONOMY TO IMPROVE BECAUSE CONSUMERS AND BUSINESSES HAVE SUCCEEDED IN REDUCING THEIR DEBT BURDENS THE 50 MPH HEAD WIND TO BORROW MR GREENSPAN'S METAPHOR IS PROBABLY NOW AT 25 MPH OR 30 MPH SO HE EXPECTS THE ECONOMY TO PICK UP SPEED THE STRENGTH OF AUTO SALES AND BUSINESSEQUIPMENT SPENDING AND THE BUOYANT STOCK MARKET SUGGEST THAT MAY BE HAPPENING THE WEAKNESS IN HOME BUILDING CONSUMER CONFIDENCE AND EMPLOYMENT UNDERSCORE THAT ALL IS NOT YET WELL BUT FED OFFICIALS INSIST THEY WON'T PUNISH GROWTH ALTHOUGH MR GREENSPAN SAID THE FED WILL RAISE INTEREST RATES EVENTUALLY HE WILL PROBABLY HOLD OFF UNTIL INFLATION FORCES HIS HAND 9308020004 930802 SYSCO CORP EXPECTS TO POST 30 INCREASE IN ITS 4THQUARTER NET HOUSTON SYSCO CORP EXPECTS TO REPORT A 30 INCREASE IN FISCAL FOURTHQUARTER EARNINGS THANKS PRIMARILY TO A MAJOR GAIN IN ITS SALES FORCE EARLIER IN THE YEAR JOHN F WOODHOUSE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID SYSCO THE NATION'S LARGEST FOODSERVICE SUPPLIER EXPECTS TO REPORT THAT EARNINGS FOR THE QUARTER ENDED JULY 3 ROSE TO ABOUT 654 MILLION OR 35 CENTS A SHARE FROM 503 MILLION OR 27 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 20 TO 281 BILLION FROM 235 BILLION THE MOST RECENT QUARTER CONTAINED 14 WEEKS COMPARED WITH 13 WEEKS A YEAR AGO WITHOUT THE ADDITIONAL WEEK MR WOODHOUSE SAID SALES AND EARNINGS FOR THE PERIOD WOULD HAVE RISEN 11 AND 21 RESPECTIVELY FOR THE YEAR SYSCO EXPECTS TO POST A RECORD 10 BILLION IN SALES UP ABOUT 13 FROM 889 BILLION THE PREVIOUS FISCAL YEAR AND ABOUT A 15 EARNINGS GAIN TO ABOUT 198 MILLION OR ROUGHLY 107 A SHARE FROM 1722 MILLION OR 93 CENTS A SHARE MR WOODHOUSE SAID THE BIGGEST BOOST TO SALES CAME FROM INCREASED ORDERS FROM EXISTING CUSTOMERS WHICH HE ATTRIBUTED TO MORE PERSONALIZED ATTENTION TO CUSTOMERS FROM THE COMPANY'S LARGER SALES FORCE ABOUT 60 OF SYSCO'S CUSTOMERS ARE RESTAURANTS MR WOODHOUSE SAID SYSCO IS OFF TO A STRONG START IN THE CURRENT FISCAL YEAR AND EXPECTS TO POST DOUBLEDIGIT SALES GAINS FOR THE YEAR THOUGH HE WOULDN'T MAKE A COMMITMENT TO FURTHER DIVIDEND INCREASES MR WOODHOUSE DID NOTE THAT SYSCO HAS RAISED ITS DIVIDEND NEARLY EVERY YEAR SINCE IT WAS FOUNDED IN 1969 SOMETIMES TWICE IN ONE YEAR HE SAID HE THOUGHT SHAREHOLDERS WOULD BE DISAPPOINTED IF THAT TREND DIDN'T CONTINUE 9308020003 930802 ZALE EXITS CHAPTER 11 AS US COURT CLEARS REORGANIZATION PLAN DALLAS ZALE CORP SAID IT EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS AFTER A FEDERAL COURT APPROVED A REVISED DISTRIBUTION FORMULA FOR ITS REORGANIZATION PLAN THE COMPANY ALSO SAID IT COMPLETED A 175 MILLION THREEYEAR FINANCING PACKAGE WITH A GROUP OF LENDERS LED BY BANK OF BOSTON CORP ZALE SAID IT EXPECTS TO USE PROCEEDS FOR WORKING CAPITAL A ZALE SPOKESMAN SAID THE LOAN PACKAGE INCLUDES A 125 MILLION REVOLVING LOAN THAT WILL CARRY AN INTEREST RATE OF PRIME RATE PLUS 15 PERCENTAGE POINTS ZALE ALSO WILL SELL TO LENDERS 50 MILLION WORTH OF THE GOLD CONTENT IN ITS JEWELRY THEN LEASE IT BACK AT A VARIABLE INTEREST RATE CURRENTLY AT 3 TO 3 1/4 UNDER TERMS OF THE REORGANIZATION PLAN CREDITORS WILL RECOVER ABOUT 26 OF THE JEWELRY RETAILER'S 166 BILLION DEBT BEFORE AN ESTIMATED 87 MILLION FROM THIRDPARTY SETTLEMENTS ZALE'S PREBANKRUPTCY OWNERS PEOPLES JEWELLERS LTD OF TORONTO AND SWAROVSKI INTERNATIONAL HOLDING AG OF SWITZERLAND LOST THEIR EQUITY INTERESTS IN ZALE WHICH FILED FOR BANKRUPTCYCOURT PROTECTION IN JANUARY 1992 ZALE ALSO NAMED A NEW SEVENMEMBER BOARD THE NEW DIRECTORS ARE DEAN GROUSSMAN PRESIDENT AND CHIEF EXECUTIVE OF ZALE MARTIN S ACKERMAN CHAIRMAN OF STANDARD BRANDS PAINT CO GLEN ADAMS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF SOUTHMARK CORP MARK DICKSTEIN PRESIDENT OF DICKSTEIN PARTNERS INC FRANK E GRZELECKI PRESIDENT AND CHIEF OPERATING OFFICER OF HANDY & HARMAN RICHARD C MARCUS FORMER CHAIRMAN AND CHIEF EXECUTIVE OF NEIMAN MARCUS STORES AND ANDREW H TISCH CHAIRMAN AND CHIEF EXECUTIVE OF LORILLARD INC 9308020002 930802 CORPORATE FOCUS CABLE & WIRELESS EXPLORES FUTURE BASED ON MULTIMEDIA UK PHONE COMPANY SEES ITSELF AS GLOBAL DISTRIBUTOR OF OTHERS' INNOVATIONS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON MICHAEL HARRIS AN EXECUTIVE OF BRITAIN'S CABLE & WIRELESS PLC WAS DAYDREAMING THE OTHER DAY WITH SOME FRIENDS AT ENGLAND'S ASCOT RACECOURSE WHAT IF THEY ASKED ONE ANOTHER AS THEY WATCHED THE PONIES CHARGE YOU COULD SIT AT HOME TUNE IN ON A SOUPEDUP CABLE TV AND PUNCH A FEW BUTTONS TO PLACE A BET THEN WIN OR LOSE YOUR BANK ACCOUNT WOULD BE INSTANTLY CREDITED OR DEBITED EVEN WITH TECHNOLOGY AVAILABLE NOW IT WOULD BE QUITE SIMPLE SAYS MR HARRIS EXECUTIVE DIRECTOR FOR WESTERN EUROPE THOUGH THE DETAILS WILL DIFFER THAT KIND OF SERVICE MAY BECOME HIS COMPANY'S FUTURE CABLE & WIRELESS IS CONDUCTING A BASIC STRATEGY REVIEW WITH A NEW HIGHTECH VISION NO LONGER JUST A TELEPHONE COMPANY WITH A 50NATION SYSTEM FROM VANUATU TO BERMUDA THE COMPANY BELIEVES IT MAY BE ABLE TO PLAY A SPECIAL ROLE IN THE WORLD TELECOMMUNICATIONS MARKET AS GLOBAL DISTRIBUTOR OF MULTIMEDIA SERVICES DEVISED BY OR WITH PARTNERS IN COMPUTING PUBLISHING AND ENTERTAINMENT TO ACCOMPLISH THIS IT'S CONDUCTING SOME MULTIMEDIA EXPERIMENTS AND MORE IMPORTANTLY IT'S TALKING WITH POTENTIAL PARTNERS AROUND THE WORLD TO LINE UP NEW SERVICES IF WE CAN GET THESE SERVICE RELATIONSHIPS EFFECTIVELY ESTABLISHED WE WILL HAVE THE ABILITY TO TRANSFER THEM TO OTHER MARKETS IN THE WORLD SAYS CHIEF EXECUTIVE OFFICER JAMES H ROSS BUT THE CABLE & WIRELESS PLAN IS FRAUGHT WITH RISK LIKE MOST EUROPEAN CONCERNS THE COMPANY IS ENTERING THE RACE LATE AND MISSTEPS ARE ALMOST GUARANTEED IN A FIELD AS YOUNG AS MULTIMEDIA NOBODY KNOWS YET WHICH SERVICES WILL CATCH ON WITH CONSUMERS WILL IT BE ELECTRONIC HOME SHOPPING CABLE VIDEO GAMES OR BUSINESS FAX AND MESSAGING SERVICES WILL THEY RUN OVER CABLE TV MOBILE RADIO CONVENTIONAL PHONE LINES OR A MIX OF ALL THREE WORSE CABLE & WIRELESS DOESN'T START OFF WITH ANY TECHNOLOGICAL WIZARDS OR BRAINSTORMS OF ITS OWN THEY DON'T HAVE A BELL LABS OR ANY OTHER ORGANIZATION INTERNALLY DEVELOPING THOSE PRODUCTS AND SERVICES SAYS AUDREY MANDELA INTERNATIONAL VICE PRESIDENT OF YANKEE GROUP A BOSTON TELECOMMUNICATIONS CONSULTING FIRM THEY'VE BEEN IN THE BUSINESS OF HELPING SMALL COUNTRIES CONSTRUCT TELEPHONE NETWORKS IT'S A LITTLE DIFFICULT FOR THEM TO MOVE INTO THE MULTIMEDIA DATA SIDE OF THE BUSINESS WHOLESALE TO SUCH SKEPTICISM MR ROSS REPLIES THAT HE'S MOVING SLOWLY AND CAUTIOUSLY INTO MULTIMEDIA GATHERING EXPERIENCE FOR A LONGTERM STRATEGY AND CABLE & WIRELESS EXECUTIVES SAY THEY AREN'T TRYING TO BEAT THE LIKES OF BELL LABORATORIES HEADON THEIR COMPANY'S ROLE WOULD MAINLY BE GLOBAL DISTRIBUTION NOT INVENTION ROLE IN INTEGRATION TO SUCCEED SAYS MR HARRIS THE WESTERN EUROPE BOSS YOU DON'T NEED A LARGE LAB OF YOUR OWN YOU CAN ACTUALLY BUILD A NETWORK AND OPEN IT UP TO THE PEOPLE WHO SUPPLY THE HANDSETS AND OTHER THINGS THE KEY TO ME IS INTEGRATING THE BEST OF WHAT COMES OUT OF ALL THE LABS IN THE WORLD MULTIMEDIA IS THE INDUSTRY BUZZWORD FOR THE DIGITIZING OF SOUND VIDEO AND TEXT FOR THE PURPOSE OF INTEGRATING COMPUTER COMMUNICATION AND ENTERTAINMENT TECHNOLOGIES IT'S A HOT NEW FIELD WHOSE BASIC TECHNOLOGIES ARE BEING LED PRIMARILY BY US COMPANIES SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO APPLE COMPUTER INC AND TIME WARNER INC CABLE & WIRELESS WANTS TO ENTER THE FIELD BECAUSE THE CONVENTIONAL STRATEGY OF THE INTERNATIONAL TELECOMMUNICATIONS BUSINESS THESE DAYS FORGING GLOBAL ALLIANCES TO EXPAND PHONE AND DATA NETWORKS REPRESENTS YESTERDAY'S DEALS MR ROSS SAYS HE SPECIFICALLY REBUFFS STOCKMARKET RUMORS THAT HE MIGHT ALLY WITH AT&T WHICH HE CALLS A GORILLA HE REGARDS HIS OWN COMPANY'S GLOBAL NETWORK AS ALREADY WELLESTABLISHED THOUGH HE'S STILL INTERESTED IN PLUGGING SOME REGIONAL HOLES IN IT SUCH AS IN LATIN AMERICA AND IRELAND THE COMPANY NEEDS TO UPGRADE THE VALUE AND QUANTITY OF THE TRAFFIC IT CARRIES RATHER THAN TO CARRY THAT TRAFFIC FARTHER THE REALLY INTERESTING DEVELOPMENTS ARE AT THE TOP END OF THE TECHNOLOGY ESCALATOR WITH TELECOMMUNICATIONS COMPUTERS AND VIDEO MERGING IN MULTIMEDIA HE SAYS TO IMPLEMENT THIS STRATEGY HE SAYS HIS COMPANY IS TALKING WITH MANY POTENTIAL PARTNERS THOUGH HE DOESN'T EXPECT ANY SIGNIFICANT DEALS UNTIL AT LEAST NEXT YEAR THIS EMERGING STRATEGY THE INTERNAL STUDY ISN'T FINISHED YET MR ROSS ACKNOWLEDGES IS PARTLY AN ATTEMPT TO PARRY A COMPETITOR'S THRUST THE ACTION BEGAN IN JUNE WHEN ARCHRIVAL BRITISH TELECOMMUNICATIONS PLC UNVEILED A 43 BILLION ALLIANCE WITH MCI COMMUNICATIONS INC THE SECONDBIGGEST US LONGDISTANCE CARRIER MR ROSS DISMISSES THE PARTNERSHIP AS OLD HAT BUT INDUSTRY ANALYSTS SAY IT THREATENS TO STEAL CABLE & WIRELESS CUSTOMERS ON BOTH SIDES OF THE ATLANTIC AND HAS MADE IT A FOCUS OF TAKEOVER SPECULATION IN THE STOCK MARKET FOR ALL ITS GRAND PLANS CABLE & WIRELESS AT THE MOMENT IS STILL A COLLECTION OF JEWELS INHERITED FROM THE BRITISH EMPIRE AND STRUNG TOGETHER ON A GLOBAL NECKLACE OF OPTICAL FIBERS THE CROWN JEWEL IS HONG KONG TELECOMMUNICATIONS LTD THE LOCAL PHONE COMPANY THERE THAT CONSISTENTLY PRODUCES OPERATINGPROFIT MARGINS OF 32 TO 36 AND IN THE FISCAL YEAR ENDED MARCH 31 INCREASED ITS REVENUE BY 22 TO 164 BILLION 243 BILLION BUT CABLE & WIRELESS ALSO RUNS PHONES IN 14 CARIBBEAN NATIONS AND HAS BEEN VYING IN THE US FOR A DISTANT FOURTH PLACE IN THE LONGDISTANCE MARKET BEHIND AT&T MCI AND SPRINT CORP IN THE UK ITS 80OWNED MERCURY COMMUNICATIONS LTD TELEPHONE AFFILIATE IS JUST STARTING TO FLOURISH SNAGGING 24 OF BRITAIN'S OUTGOING PHONE TRAFFIC LAST YEAR FROM DOMINANT BT FOR MONTHS MERCURY PARTLY WITH HELP FROM ITS 20 SHAREHOLDER CANADA'S BCE INC HAS BEEN TESTING SERVICES MR HARRIS SAYS HE WOULDN'T BE SURPRISED IF IT WERE SOON TO DISTRIBUTE THE ELECTRONIC TRAFFICINFORMATION AND INSURANCE SERVICES OF THE AUTOMOBILE ASSOCIATION ONE OF BRITAIN'S TWO MAIN AUTO CLUBS IN CABLE TV A BCECABLE & WIRELESS VENTURE IS TESTING TECHNOLOGY IN LONDON TO LET SPORTS VIEWERS SWITCH BY THEMSELVES FROM ONE CAMERA ANGLE TO ANOTHER RATHER THAN WATCHING THE PREEDITED SHOW THE PARTNERS ARE ALSO SIGNING UP CUSTOMERS TO TRY A MERCURY TELEPHONE SERVICE THAT USES THEIR CABLE TV WIRES INSTEAD OF BT'S TELEPHONE CABLES YET ANOTHER ASPECT OF IT MR ROSS SAYS IS CABLE & WIRELESS'S VENTURE WITH U S WEST INC TO LAUNCH LATER THIS YEAR IN BRITAIN A NEW MOBILE TELEPHONE SERVICE IT CALLS ONE2ONE THE SYSTEM A SOCALLED PERSONAL COMMUNICATIONS NETWORK IS SUPPOSED TO BE CHEAPER AND HAVE SMALLER HANDSETS THAN TODAY'S CELLULAR TELEPHONES BUT ALSO CARRY A HOST OF NEW ELECTRONIC SERVICES WITH THE HELP OF POWERFUL PHONECOMPANY COMPUTERS FOR THE INDUSTRY AS A WHOLE MULTIMEDIA IS A VOYAGE OF DISCOVERY MR ROSS SAYS WE'RE PUTTING OUR TOES IN THE WATER 9308020001 930802 WORK & FAMILY BY SUE SHELLENBARGER EMPLOYERS ARE SCRAMBLING TO COMPLY WITH THE NEW FEDERAL FAMILYLEAVE LAW BY THURSDAY WHEN IT TAKES EFFECT THE MEASURE GUARANTEES EMPLOYEES AS MUCH AS 12 WEEKS A YEAR OF UNPAID JOBPROTECTED LEAVE WITH MEDICAL BENEFITS FOR CHILDBIRTH ADOPTION OR ILLNESS OF THE EMPLOYEE OR A FAMILY MEMBER THOUGH MOST LARGE EMPLOYERS ALREADY HAD SOME KIND OF PARENTAL OR FAMILY LEAVE POLICY THE BROAD FEDERAL MANDATE IS FORCING CHANGES IN EVEN THE MOST GENEROUS CORPORATE POLICIES AN INFORMAL TELEPHONE SURVEY OF 15 LARGE EMPLOYERS FOUND LAST WEEK MANY COMPANIES SAID THEY WON'T FINISH RETOOLING THEIR POLICIES BY THE DEADLINE PARTLY BECAUSE REGULATIONS EXPLAINING THE LAW WERE ISSUED ONLY TWO MONTHS AGO WE'RE STILL SCRAMBLING TO GET EVERYTHING PULLED TOGETHER SAYS A HUMANRESOURCES MANAGER FOR A TELECOMMUNICATIONS COMPANY AS OF LAST WEEK SEVERAL MULTISTATE EMPLOYERS STILL HAD LAWYERS TRYING TO DEVISE SINGLE POLICIES THAT WOULD RECONCILE FEDERAL AND STATE FAMILYLEAVE LAWS MORE THAN HALF OF THE COMPANIES CONTACTED SAID THEY WOULD HAVE TO CHANGE THEIR POLICIES TO ALLOW INTERMITTENT LEAVE WHICH THE FEDERAL LAW REQUIRES BE AVAILABLE AS AN OPTION UNDER THAT PROVISION EMPLOYEES CAN TAKE THEIR LEAVE IN THE FORM OF REDUCED WORKWEEKS IF MEDICALLY NECESSARY TWOTHIRDS OF THE COMPANIES SAID THEY ARE CLARIFYING JOB GUARANTEES OR EXPANDING LEAVE ELIGIBILITY TO PARTTIME EMPLOYEES AND FOSTER PARENTS AS MANDATED MOST COMPANIES CONTACTED SAID THEY ARE DISTRIBUTING MEMOS TELLING MANAGERS IN EFFECT THAT THEY NO LONGER HAVE A CHOICE ABOUT WHETHER TO GRANT FAMILY LEAVE HOW LONG A LEAVE SHOULD BE OR WHAT JOB TO GIVE A RETURNING EMPLOYEE BEYOND THAT MANY ARE SIMPLY POSTING THE REQUIRED BULLETINBOARD NOTICES AND WILL UPDATE POLICY MANUALS IN A FEW WEEKS SAYS MICHAEL MCALLISTER A CONSULTANT WITH FOSTER HIGGINS NEW YORK ONLY THREE EMPLOYERS SURVEYED HAD ANY PLANS TO TRAIN MANAGERS IN THE LAW'S REQUIREMENTS A STANCE THAT COULD BE RISKY SOME CONSULTANTS SAY MANAGERS ARE USED TO HAVING DISCRETION IN GRANTING LEAVES SAYS JANICE STANGER A WORKFAMILY CONSULTANT FOR WILLIAM M MERCER IN SAN FRANCISCO THIS IS GOING TO BE AN AREA WHERE PEOPLE WILL SLIP P AND IF YOUR MANAGERS ARE SLIPPING UP AND TELLING SOMEBODY NO WHEN THEY SHOULD HAVE SAID YES YOU'RE GOING TO END UP IN COURT SUMMER CAMPS SPONSORED BY EMPLOYERS ARE BOOMING CORPORATE BACKING HAS HELPED CREATE OR EXPAND AN ESTIMATED 100 OR MORE SUMMER CAMPS FOR SCHOOLAGE CHILDREN UP FROM ONLY A HANDFUL SEVERAL YEARS AGO AT LONGESTABLISHED CAMPS RUN BY MINNESOTA MINING & MANUFACTURING AND EASTMAN KODAK ENROLLMENT IS UP FIVEFOLD TO TENFOLD IN RECENT YEARS THE AMERICAN BUSINESS COLLABORATION A 144COMPANY CONSORTIUM IS SPONSORING SUMMER CAMPS IN EIGHT CITIES MANY WITH A SCIENCEANDTECHNOLOGY EMPHASIS SAYS MARY KAY LEONARD A VICE PRESIDENT OF WORK/FAMILY DIRECTIONS A BOSTON CONSULTANT TO THE GROUP IN LIVERMORE CALIF AMERICAN TELEPHONE & TELEGRAPH FUNDING HELPED CREATE EQUIP AND TRAIN STAFF FOR A SCIENCE CAMP WHERE ACTIVITIES INCLUDE BUILDING MODEL ROCKETS AND STUDYING MARINE LIFE IN A NEARBY RIVER THE CAMPS MOSTLY ENROLL PRETEENS THROUGH 14YEAROLDS FOR PERIODS FROM A WEEK TO AN ENTIRE SUMMER EASING PARENTS' WORRIES ABOUT CHILDREN LEFT HOME ALONE WHILE LEAVING KIDS ALONE FOR AN HOUR OR TWO AFTER SCHOOL IS CERTAINLY AN ISSUE EIGHT OR NINE HOURS A DAY DURING THE SUMMER IS TERRIFYING FOR PARENTS SAYS MERLE LAWRENCE MANAGER OF LEVI STRAUSS'S CHILDCARE FUND WHICH IS FINANCING 10 CAMPS THIS SUMMER NEPOTISM IS ALIVE AND WELL WITH SOME BUSINESSES CITING ADVANTAGES IN HIRING FAMILY MEMBERS OF EMPLOYEES A SURVEY OF 432 MOSTLY SMALL AND MIDSIZED BUSINESSES RELEASED LAST MONTH FOUND THAT 88 EMPLOY RELATIVES AND 84 HAVE NO POLICY PROHIBITING EMPLOYMENT OF SPOUSES NEARLY THREEQUARTERS DISAGREED WITH THE STATEMENT THAT EMPLOYMENT OF FAMILY MEMBERS SHOULD BE DISCOURAGED ACCORDING TO THE SURVEY BY THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT ALEXANDRIA VA HALF OF THE 6700 EMPLOYEES AT QUAD/GRAPHICS A PEWAUKEE WIS MAGAZINE PRINTER ARE RELATIVES OF OTHER EMPLOYEES SAYS EMMY LABODE DIRECTOR OF EMPLOYEE SERVICES HIRING FAMILY MEMBERS FOSTERS LOYALTY AND AIDS RECRUITMENT MS LABODE ADDS IF I'M GOING TO RECRUIT SOMEBODY FROM MY OWN FAMILY I'M GOING TO MAKE SURE THAT FAMILY MEMBER IS NOT GOING TO LET ME DOWN WITH MORE WOMEN IN THE WORK FORCE THERE IS A LOT MORE UNDERSTANDING TODAY OF RELATED PEOPLE WORKING IN THE SAME ORGANIZATION SAYS JOHN P BASSLER MANAGING DIRECTOR OF KORN/FERRY INTERNATIONAL'S NEW YORK OFFICE IN SOME CASES JOB LOSSES HAVE FORCED EMPLOYEES TO TAP FAMILY CONNECTIONS JOHN CHALLENGER OF CHALLENGER GRAY & CHRISTMAS CHICAGO OUTPLACEMENT CONSULTANTS CITES A 35YEAROLD FORMER NEW YORK ADVERTISING EXECUTIVE WHO WAS OUT OF WORK FOR 10 MONTHS BEFORE JOINING HIS UNCLE'S BUSINESS IN TIGHT TIMES MORE PEOPLE ARE THROWN BACK ON THEIR FAMILY RESOURCES HE SAYS TO AVOID CONFLICTS OF INTEREST HOWEVER 73 OF THE COMPANIES IN THE SOCIETY'S SURVEY HAVE POLICIES PROHIBITING SPOUSES FROM SUPERVISING EACH OTHER CHILDREN OF EMPLOYEES AT PRINCIPAL FINANCIAL GROUP GET TSHIRTS BACKPACKS AND BEACH TOWELS FOR SUCH ACTIVITIES AS EXERCISING DOING CHORES EATING FRUITS AND VEGETABLES OR EVEN WRITING A POEM OR STORY THE PRIZES ARE PART OF THE COMPANY'S WELLNESS PROGRAM A SPANISHLANGUAGE EDITION OF EDUCATION TODAY A NEWSLETTER FOR WORKING PARENTS PUBLISHED BY EDUCATIONAL PUBLISHING GROUP BOSTON MAKES ITS DEBUT THIS WEEK WITH BACKING FROM BRISTOLMYERS SQUIBB 9308020055 930701 COUNTERPOINT STATESPONSORED TERRORISM AMERICANSTYLE BY ALEXANDER COCKBURN BILL CLINTON WON'T BE THE FIRST PRESIDENT TO LEARN THAT KILLING PEOPLE CAN BOUNCE YOU UP IN THE POLLS COME TO THINK OF IT HE KNEW THAT ANYWAY HAVING TRAVELED BACK TO ARKANSAS IN PRIMARY SEASON LAST YEAR TO LEND HIS PROXIMITY TO THE EXECUTION OF A BLACK CONVICT WITH HALF A BRAIN THUS FAR BLOODLETTING APPEARS TO BE THE DYNAMIC CORE OF HIS POLITICS OF MEANING WHETHER IN WACO MOGADISHU OR BAGHDAD THE PRESIDENT HAS ALSO GRASPED THE IMPORTANT PRINCIPLE THAT IT'S BETTER TO PICK ON TARGETS EMPHATICALLY NOT YOUR OWN SIZE AND TO SHOOT FROM A SAFE DISTANCE AS WITH THE COBRA HELICOPTER ASSAULTS AGAINST A STREET GANG LEADER IN SOMALIA OR THE 23 TOMAHAWK MISSILES AIMED AT THE MUKHABARAT TO JUDGE BY THE REACTIONS ON TV TALK SHOWS AND IN MOST EDITORIAL COLUMNS THE OPINIONFORMING CLASSES THINK THAT THE MOST RECENT BOMBARDMENT OF BAGHDAD WAS A FINE IDEA THOUGH GIVING THE PRESIDENT A BIT OF A LIFT POPULAR REACTION HAS NOT BEEN REMARKABLE BY THE STANDARD OF SUCH RALLY EVENTS AS THE POLLSTERS CALL THEM IN THE EDITORIAL COLUMNS OF THIS NEWSPAPER THERE WAS OF COURSE TREMENDOUS CHESTPOUNDING OF THE THAT'LL SHOW 'EM VARIETY WITH BACKSLAPPING OF PRESIDENT BILL FOR CHOOSING WAR OVER CLASS WAR A COUPLE OF MORE SALVOS OVER FOREIGN SOIL AND THE JOURNAL WILL BE ABLE TO DECOMMISSION THE GUILLOTINE QUAINTLY ADORNING RECENT EDITORIALS AND SUBSTITUTE THE PUISSANT MISSILE A FIRM AND COMMENSURATE RESPONSE THE PRESIDENT TOLD THE NATION LAST WEEKEND WAS ESSENTIAL TO PROTECT OUR SOVEREIGNTY TO SEND A MESSAGE TO THOSE WHO ENGAGE IN STATESPONSORED TERRORISM TO DETER FURTHER VIOLENCE AGAINST OUR PEOPLE AND TO AFFIRM THE EXPECTATION OF CIVILIZED BEHAVIOR AMONG NATIONS ARTICLE 51 ENVISAGES A NATION UNDER ARMED ATTACK AS IF FOR EXAMPLE CANADIAN TANKS AND BOMBERS WERE SUDDENLY TO INVADE US TERRITORY THE BELEAGUERED NATION CAN INVOKE ARTICLE 51 AND DEFEND ITSELF PENDING COLLECTIVE UN ACTION THIS DOES NOT APPLY TO A SITUATION IN WHICH PRESIDENT CLINTON ACTING ON INFORMATION FROM THE CENTRAL INTELLIGENCE AGENCY AND PENDING THE OUTCOME OF A TRIAL IN KUWAIT CONCLUDED THAT AMERICAN SOVEREIGNTY WAS UNDER THREAT AND THEN ORDERED THE TOMAHAWKS TO BE LAUNCHED ENVELOPED IN THE SANCTITY OF THE CHURCH THAT HE DULY VISITED THE NEXT DAY PRESIDENT BILL DID CONCEDE THAT IRAQI CIVILIANS HAD BEEN KILLED BUT NOT VERY MANY THE CIA HAS DONE MANY THINGS IN ITS TIME BUT PROVISION OF RELIABLE INFORMATION IS CERTAINLY NOT AMONG THEM AND THE CIRCUMSTANCES OF THE SUPPOSED ASSASSINATION BID ON GEORGE BUSH WHEN HE VISITED KUWAIT IN APRIL ARE CLOUDIER THAN MIGHT BE IMAGINED FROM LISTENING TO MR CLINTON OR READING THE US PRESS IT CERTAINLY SEEMS TO BE CLEAR THAT AN IRAQIEQUIPPED VEHICLE PRIMED WITH EXPLOSIVE ENTERED KUWAIT IT'S FAR LESS CERTAIN THAT THE TARGET WAS MR BUSH ONE OF THE RINGLEADERS SAYS HE WAS OTHERS SAY HE WASN'T AND YET ANOTHER CHANGED HIS MIND AFTER INTERROGATION EVEN IF THE EVIDENCE IN KUWAIT HAD BEEN FAR CLEARER THAN IT IS THE US ASSAULT WOULD STILL HAVE BEEN A LAWLESS PIECE OF BUSINESS AND ONE FULFILLING ANY COHERENT DEFINITION OF STATESPONSORED TERRORISM INDEED SADDAM HUSSEIN COULD HAVE ADDRESSED THE IRAQI PEOPLE IN EXACTLY THE SAME WORDS AS MR CLINTON'S SIMILARLY JUSTIFYING AN ATTACK ON MR BUSH ON JAN 17 IN THE LAST HOURS OF MR BUSH'S PRESIDENCY A SINGLE CRUISE MISSILE DISCHARGED FROM A US WARSHIP CRASHED INTO THE AL RASHID HOTEL KILLING TWO RECEPTIONISTS THERE WAS VAGUE TALK FROM THE US NAVY ABOUT THE MISSILE VEERING OFF COURSE BUT A MORE CONVINCING EXPLANATION IS THAT AN ISLAMIC CONFERENCE WAS BEING HELD AT THE AL RASHID AT THE TIME SADDAM HAD ATTENDED SUCH A CONFERENCE A YEAR EARLIER THE CIA NO DOUBT OFFERED SOLID ASSURANCES THAT SADDAM WAS TO REPEAT HIS CONFERENCE APPEARANCE AT ANY RATE SADDAM AND HIS INTELLIGENCE SERVICES COULD REASONABLY HAVE CONCLUDED THAT HE WAS THE OBJECT OF AN ASSASSINATION BID IT WOULD NOT HAVE BEEN THE FIRST TIME THAT THE US HAD TRIED TO KILL HIM ON SOME ACCOUNTS DURING THE 1991 AIR WAR UP TO ONETHIRD OF ALL US SORTIES OVER BAGHDAD WERE DEVOTED TO THE TASK OF TRYING TO LOCATE SADDAM AND KILL HIM BY THE LOGIC OF MR CLINTON'S RATIONALE BOTH LIBYA AND CUBA WOULD BE QUITE ENTITLED TO LET OFF BOMBS AND MISSILES AGAINST US CITIZENS AND PROPERTY THE BOMBING SORTIES OVER LIBYA IN APRIL 1986 WERE PRECEDED BY A DECISION MADE IN THE NATIONAL SECURITY COUNCIL AND ENDORSED BY PRESIDENT REAGAN TO KILL COL GADHAFI DISCLOSING THIS SECRET DECISION THOUGH IT WAS OBVIOUS TO ALL SINCE NINE F111S AIMED BOMBS AT COL GADHAFI'S TENT JOURNALIST SEYMOUR HERSH REPORTED IN FEBRUARY 1987 THAT THE CIA HAD URGED THAT THE LIBYAN LEADER'S FAMILY ALSO BE TARGETED ON THE GROUNDS THAT A PERCEIVED FAILURE TO PROTECT HIS WIFE AND CHILDREN WOULD DIMINISH COL GADHAFI'S STANDING IN THE EYES OF HIS SUBJECTS THE F111S MANAGED TO WOUND FAMILY MEMBERS BUT KILLED ONLY ONE AN ADOPTED DAUGHTER ON THE OCCASION OF THIS STATESPONSORED TERRORISM AGAINST LIBYA THE CIA ONCE AGAIN SUPPLIED A PUBLIC RATIONALE IN THE FORM OF ASSURANCES THAT A BOMB EXPLODING IN A BERLIN NIGHTCLUB WAS OF LIBYAN ORIGIN FIDEL CASTRO HAS AMPLE REASON BY THE TERMS OF MR CLINTON'S JUSTIFICATION TO ATTACK THE US AS THE CHURCH COMMITTEE INVESTIGATIONS OF THE MID1970S CONCLUSIVELY ESTABLISHED MR CASTRO HAS BEEN THE TARGET OF AT LEAST EIGHT US STATESPONSORED MURDER BIDS CUBAN SOVEREIGNTY HAS BEEN REPEATEDLY ABUSED AS THE USSPONSORED TERRORISTS SABOTAGED THE CUBAN ECONOMY SO WHEN IT COMES TO STATESPONSORED TERRORISM THE US NEED ACKNOWLEDGE NO MASTER THOUGH IT HAS SURELY FOSTERED ARDENT STUDENTS SPARE ONE FINAL THOUGHT FOR IRAQIS AND NOT JUST THOSE CIVILIANS KILLED IN LAST WEEKEND'S NIGHTTIME ASSAULT AN INTERNATIONAL TEAM OF DOCTORS REPORTED A FEW MONTHS AGO IN THE NEW ENGLAND JOURNAL OF MEDICINE THAT THERE HAVE BEEN 50000 DEATHS OF IRAQI CHILDREN OVER NORMAL RATES SINCE THE START OF THE WAR THE UN EMBARGO IS STEADILY DRIVING THE LIVES OF THE POOREST IRAQIS TOWARD THE MOST DESPERATE MARGIN IF DEATHS ARE REQUIRED TO MAKE PROUD AMERICAN HEARTS BEAT FASTER THERE ARE THOSE APLENTY IN IRAQ MR COCKBURN IS A SYNDICATED COLUMNIST BASED AT THE NATION SEE RELATED LETTERS LETTERS TO THE EDITOR TERRORISM TARGETS THE INNOCENT WSJ AUG 2 1993 9307010164 YY93 MM08 9308020051 930712 CLINTON DEFERS A NECESSITY NUCLEAR TESTING BY JAMES SCHLESINGER ON JULY 3 PRESIDENT CLINTON ANNOUNCED HIS LONGAWAITED DECISIONS REGARDING THE FUTURE OF NUCLEAR TESTING CALLED FOR BY CONGRESSIONAL LEGISLATION ENACTED IN 1992 IN BRIEF HE DECIDED TO CONTINUE THE NUCLEAR TESTING MORATORIUM FOR AT LEAST 15 MONTHS TO AVOID NUCLEAR TESTING UNLESS SOME OTHER NATION TESTS TO BEGIN NEGOTIATIONS FOR A COMPREHENSIVE TEST BAN STARTING PRESUMABLY IN 1996 AND APPARENTLY TO PROHIBIT SUBSEQUENT TESTING WITH NUCLEAR YIELD SINCE OUR NATIONAL SECURITY AND FOREIGN POLICY DEPARTMENTS HAD WITHIN RECENT MONTHS RECOMMENDED UNANIMOUSLY THAT NUCLEAR TESTING BE RESUMED AND A PRESIDENTIAL DECISION TO DO SO HAD BEEN ANNOUNCED TO THE PRESS THESE DECISIONS REPRESENTED QUITE A PACKAGE TO BE BURIED ON THE FOURTH OF JULY WEEKEND LET US FIRST EXAMINE THE SHORTRUN IMPLICATIONS THE MOST SERIOUS IS THAT WE HAVE SCUTTLED OUR MOST INTIMATE LONGTIME ALLY THE US HAS BEEN COMMITTED TO ALLOWING THE BRITISH TO TEST THE WARHEADS FOR THEIR TRIDENT PROGRAM FOR WHICH INCIDENTALLY WE ARE SELLING THEM THE MISSILES AT OUR NEVADA TEST RANGE UNLESS SOME OTHER WEAPONS STATE BAILS US OUT BY TESTING FIRST THE PRESIDENT'S DECISION MEANS THAT THE BRITISH PROGRAM IS BOTH DELAYED AND DEGRADED QUITE BLUNTLY WE HAVE TREATED THE BRITISH MORE SHABBILY THAN AT ANY TIME SINCE ANOTHER WEAPONS DOUBLECROSS THE SKYBOLT DECISION OF 1962 BRITISH OFFICIALS HAVE STEADILY URGED THE ADMINISTRATION TO PERMIT THEIR TESTS TO TAKE PLACE BUT THEY HAVE DONE SO QUIETLY WISHING TO AVOID AN EMBARRASSING PUBLIC REBUFF BY THEIR MAJOR ALLY THIS DECISION WILL SERIOUSLY DAMAGE OUR RELATIONS WITH THE UK ON THE CONTINENT THE REACTION COULD BE EVEN WORSE THE GERMANS WILL RECALL BEING SIMILARLY EMBARRASSED BY THE NEUTRON BOMB DECISION OF 1977 THE FRENCH WILL LIKELY EXTRACT SOME DELIGHT IN SEEING THE BRITISH ONCE AGAIN COME A CROPPER IN THEIR WILLINGNESS TO RELY ON THE US BUT OVERALL THE REACTION WILL BE QUITE SIMPLE IF THE AMERICANS DESPITE THEIR SPECIAL RELATIONSHIP ARE PREPARED TO DO THIS TO THE BRITISH WHAT KIND OF SUPPORT CAN THE REST OF EUROPE EXPECT THERE IS ANOTHER NEARTERM ASPECT OF THE DECISION NOT TO TEST PRESENT LAW PERMITS TESTING TO ENHANCE THE SAFETY OF THE WEAPONS INVENTORY THE PRESIDENT'S DECISION PUTS US IN A PARADOXICAL AND POTENTIALLY DISTRESSING POSITION IF WE HAVE A SERIOUS SAFETY PROBLEM WE MUST WAIT FOR SOME OTHER NATION TO TEST BEFORE WE ADDRESS THAT PROBLEM EVEN NOW THERE ARE SAFETY CONCERNS WITH THE W88 WARHEAD FOR THE TRIDENT AND THE W80 FOR THE AIRLAUNCHED CRUISE MISSILE THESE ARE HOWEVER RISKS THAT WE CAN TOLERATE ALL IN ALL THE PRESIDENT'S DECISION DOES LITTLE IMMEDIATE DAMAGE TO AMERICA'S OWN DEFENSE POSTURE BUT IF WE TURN TO THE LONGER RUN THE CONSEQUENCES ARE POTENTIALLY DIRE WHY THIS IS SO REQUIRES A BRIEF EXPLANATION OF THE NATURE OF NUCLEAR WEAPONS AND THE CONTINUED NECESSITY FOR RELIABILITY TESTING A NUCLEAR WEAPON IS A HIGHLY COMPLICATED DEVICE THIS IS ESPECIALLY SO FOR AMERICAN WEAPONS SINCE OVER THE DECADES WE HAVE STEADILY SOUGHT TO IMPROVE YIELDTOWEIGHT RATIOS SAFETY SECURITY AND RELIABILITY OVER TIME INDIVIDUAL COMPONENTS OF THESE WEAPONS WILL FAIL OR DEGRADE AND WILL HAVE TO BE REPLACED ACCEPTABLE COMPONENTS MAY BECOME UNAVAILABLE AS MANUFACTURERS SHIFT PRODUCT LINES OR GO OUT OF BUSINESS OVER TIME MATERIALS MAY BE SLIGHTLY ALTERED THUS NEW COMPONENTS OR COMPONENTS OF SLIGHTLY DIFFERENT MATERIALS MUST BE INTEGRATED INTO WEAPON DESIGNS THAT WERE DEPLOYED EARLIER AS THIS PROCESS GOES ON OVER THE YEARS A SIMPLE QUESTION ARISES WILL THIS DESIGN STILL WORK THAT IS WHY RELIABILITY TESTING IS ESSENTIAL AS TIME PASSES AND AS THE WEAPON IS RETROFITTED WE MUST BE ABSOLUTELY CONFIDENT THAT THIS MODIFIED DEVICE WILL STILL INDUCE THE PROPER NUCLEAR REACTION THAT IS WHY NONNUCLEAR TESTING VALUABLE AS IT IS IS INSUFFICIENT IT IS WHY TALK OF A TEST BAN WITH ZERO NUCLEAR YIELD IS IRRESPONSIBLE TESTING FOR RELIABILITY MAY BE VERY LOWYIELD IN THE KILOTON RANGE BUT IT REMAINS ESSENTIAL IF WE ARE TO MAINTAIN CONFIDENCE IN STOCKPILE RELIABILITY ALL THIS SHOULD BE PERFECTLY OBVIOUS IF NUCLEAR TESTING HAD NOT BECOME SO FREIGHTED WITH SYMBOLISM IN THE YEARS SINCE PRESIDENT KENNEDY'S ATMOSPHERIC TEST BAN INDIVIDUALS WHO WOULD NOT ALLOW THEIR LAWNMOWERS LET ALONE THEIR AUTOMOBILES TO GO UNTESTED FOR MORE THAN A YEAR WILL ARGUE WITH APPARENT SERIOUSNESS THAT OUR NUCLEAR WEAPONS CAN REMAIN UNTESTED IN PERPETUITY AND YET REMAIN RELIABLE THE HISTORY OF COMPLEX MILITARY HARDWARE GIVES NO SUPPORT TO THAT BELIEF TO CITE ONE EXAMPLE GOING INTO WORLD WAR II THE NAVY'S TORPEDOES HAD NOT BEEN ADEQUATELY TESTED BECAUSE OF INSUFFICIENT FUNDS IT TOOK TWO YEARS OF WAR BEFORE WE FULLY SOLVED THE PROBLEM OF MAKING OUR TORPEDOES EFFECTIVE AT THE BATTLE OF MIDWAY THE US LAUNCHED 47 TORPEDO AIRCRAFT WITH NOT A SINGLE HIT ON ANY JAPANESE SHIP THE JAPANESE PERFORMANCE AT PEARL HARBOR WAS NOTICEABLY BETTER HAD IT NOT BEEN FOR OUR DIVE BOMBERS AND SOME GOOD LUCK THE US WOULD HAVE LOST THE CRUCIAL NAVAL BATTLE OF THE PACIFIC WAR WE CAN REDUCE THE NUMBER OF TESTS TO A MINIMUM WE CAN GO TO VERY LOWYIELD TESTING BUT WE CANNOT UNLESS WE ARE IRRESPONSIBLE ELIMINATE TESTING ENTIRELY ESPECIALLY NOW THAT WE ARE REDUCING THE NUMBERS OF DELIVERY VEHICLES AND WARHEADS WE CANNOT AFFORD TO ALLOW WARHEAD RELIABILITY TO ERODE AS WELL NO LONGER WILL THERE BE A SUFFICIENT VARIETY OF SYSTEMS TO TOLERATE SAY MORE THAN ONE WEAPON'S RELIABILITY PROBLEM THE LEGISLATION ADOPTED BY CONGRESS IN 1992 AND RELUCTANTLY SIGNED BY PRESIDENT BUSH WAS BASED ON THE PREMISE THAT WE COULD RUN A FEW RELIABILITY TESTS BETWEEN NOW AND THE END OF 1996 AND THOSE FEW TESTS WOULD ENSURE THE RELIABILITY OF OUR PRINCIPAL WEAPONS DESIGNS IN PERPETUITY IT IS A FALSE PREMISE REFLECTING A RATHER CAVALIER ATTITUDE TOWARD STOCKPILE RELIABILITY IT WILL NOT STAND UP TO SCRUTINY THE ADMINISTRATION WILL SEEK TO JUSTIFY ITS REVERSAL FIRST IT WILL EMPHASIZE THAT A HALT IN TESTING IS ESSENTIAL TO OUR EFFORT TO PREVENT THE SPREAD OF NUCLEAR WEAPONS THIS SEEMS TO SUGGEST THAT THE REASON SUCH LEADERS AS KIM IL SUNG SADDAM HUSSEIN MOAMMAR GADHAFI AND HASHEMI RAFSANJANI AS WELL AS PROMINENT NONPROLIFERATION TREATY HOLDOUTS LIKE INDIA AND PAKISTAN ARE MOTIVATED TO ACQUIRE NUCLEAR CAPABILITIES IS THAT THE AMERICANS ARE TESTING TO SAY THE LEAST THIS STRIKES ME AS A NAIVE READING OF THE MOTIVATIONS OF NUCLEAR ASPIRANTS SUFFICE IT TO SAY TO PREVENT THE FURTHER SPREAD OF NUCLEAR WEAPONS WILL REQUIRE A MASSIVE EFFORT ON THE PART OF THE US AND THE INTERNATIONAL COMMUNITY AND WE SHALL GET SCANT ASSISTANCE BY REFRAINING FROM AN OCCASIONAL LOWYIELD TEST TO SUSTAIN OUR CONFIDENCE IN STOCKPILE RELIABILITY INDEED THOSE MANY NATIONS THAT PREFER TO BE SHELTERED UNDER THE AMERICAN NUCLEAR UMBRELLA THOUGH THEY THEMSELVES COULD ACQUIRE NUCLEAR CAPABILITIES WILL SCARCELY BE SUSTAINED IN THEIR POLICIES IF OUR ACTIONS RAISE DOUBTS ABOUT THE RELIABILITY OF OUR WEAPONS SECOND WE SHALL HEAR MUCH IN THE MONTHS AHEAD ABOUT THE NEW SAFEGUARDS THAT WILL BE PUT IN PLACE AS A SUBSTITUTE FOR TESTING ADVANCED SIMULATION TECHNIQUES NEW COMPUTER CODES ETC WE SHALL HEAR PRAISE FOR THE SOPHISTICATION OF OUR LABORATORIES THAT CAN MAKE TESTING UNNECESSARY YET ONE CONCLUSION REMAINS INELUCTABLE IN THE ABSENCE OF ANY NUCLEAR TESTING BOTH THE ESTIMATE OF STOCKPILE RELIABILITY AND THE DEGREE OF CONFIDENCE IN THAT ESTIMATE WILL ERODE OVER THE DECADES AHEAD THIRD WE SHALL HEAR A GREAT DEAL ABOUT THE SOUNDINGS THAT WERE TAKEN IN CONGRESS AND THE NEGOTIATIONS REGARDING WHAT WOULD BE ACCEPTABLE BEFORE THE ADMINISTRATION ABANDONED ITS INITIAL DECISION TO RESUME TESTING THAT THERE WERE SUCH INQUIRIES IS TRUE BUT THEY WERE PRIMARILY WITH THE CRITICS OF NUCLEAR TESTING WHO SOUGHT TO EMPHASIZE HOW RESTRICTIVE THE LEGISLATION WAS LITTLE ATTEMPT WAS MADE TO LISTEN TO THOSE LAWYERS WHO INSISTED THAT THE LEGISLATION PROVIDED THE ADMINISTRATION WITH AMPLE LEEWAY LITTLE ATTEMPT WAS MADE TO ORGANIZE SUPPORT FOR RENEWED TESTING ON THE HILL FOR EXAMPLE SAVE FOR THE PRINCIPAL SPONSOR OF THE LEGISLATION REPUBLICANS IN THE SENATE WERE IGNORED IN ANY EVENT IT IS THE OBLIGATION OF AN ADMINISTRATION NOT SIMPLY TO DEFER TO PREVAILING HILL SENTIMENT BUT TO SHAPE ATTITUDES ON IMPORTANT MATTERS OF NATIONAL SECURITY THE ADMINISTRATION HAS ACKNOWLEDGED THAT IN THIS CASE AT LEAST IT HAS FAILED TO DO SO HOWEVER THERE IS SOME GOOD NEWS IN THE ADMINISTRATION'S HANDLING OF THIS ISSUE IN MY JUDGMENT IT WILL FOREVER PRECLUDE THIS OR ANOTHER ADMINISTRATION'S OBTAINING THE 67 SENATE VOTES NEEDED TO RATIFY A COMPREHENSIVE TEST BAN TREATY IF THAT TREATY WERE TO PRECLUDE LOWYIELD TESTING FOR RELIABILITY PURPOSES OUR PRINCIPAL DESIGNS ARE RELATIVELY NEW FOR THE NEXT HALFDECADE PERHAPS FOR AS LONG AS A DECADE THE DECLINE IN THE CONFIDENCE IN THE STOCKPILE WILL BE RELATIVELY MODEST IF PRESIDENT CLINTON DOES NOT RECOGNIZE THE CONNECTION BETWEEN CONTINUED TESTING AND CONFIDENCE IN THE STOCKPILE ONE OF HIS SUCCESSORS ALMOST CERTAINLY WILL CONTINUED TESTING IF VERY MODEST TESTING IS THE PRICE OF A RELIABLE DETERRENT MR SCHLESINGER IS FORMER DEFENSE SECRETARY FORMER CHAIRMAN OF THE ATOMIC ENERGY COMMISSION AND FORMER SECRETARY OF ENERGY SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE MUCH BETTER OFF DEFERRING NUCLEAR TEST WSJ AUG 2 1993 9307120084 YY93 MM08