COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9307300207 930730 SMALL BUSINESS THE TAX PLAN'S VICTIM BY DAVID HALE BARRING A REVOLUTION IN THE CONFERENCE COMMITTEE BILL CLINTON APPEARS LIKELY TO END UP PRESENTING THE NATION WITH A FISCAL PROGRAM THAT CONTRADICTS MANY OF HIS 1992 PROMISES THERE WILL BE TAX INCREASES MORE RESTRICTIVE THAN THE ONES PROPOSED BY ROSS PEROT CONSTRAINTS ON DISCRETIONARY FEDERAL SPENDING CARRIED OVER FROM GEORGE BUSH'S 1990 BUDGET ACCORD AND LESS DEFICIT REDUCTION THAN ANYONE EXPECTS DUE TO A MISPLACED FOCUS ON INCOME REDISTRIBUTION AT THE EXPENSE OF ECONOMIC GROWTH THERE ARE SEVERAL PROBLEMS WITH THE PRESIDENT'S FISCAL PROGRAM FIRST HE IS PROPOSING THE LARGEST INCREASE IN MARGINAL INCOMETAX RATES SINCE THE 1930S THE ADMINISTRATION SUPPORTS A LARGE INCREASE IN RATES BECAUSE MANY OF THE PRESIDENT'S ADVISERS BELIEVE THAT THE 1980S TAX CUTS PRODUCED A WINDFALL FOR AFFLUENT AMERICANS AT THE EXPENSE OF OTHER SOCIAL CLASSES THE TAX BILL NOW MOVING THROUGH CONGRESS WILL CAUSE HIGHINCOME TAXPAYERS TO SEARCH FOR NEW WAYS TO REDUCE THEIR REPORTED INCOME IT WILL ALSO ENCOURAGE A POLITICAL BIDDING COMPETITION TO REVIVE TAX SHELTERS AND OTHER ALLOWANCES THAT DISTORT INVESTMENT DECISIONS SECONDLY AND IMPORTANTLY MUCH OF THE PRESIDENT'S INCOMETAX HIKE WILL FALL ON SMALL BUSINESS BECAUSE OF THE BIG REDUCTION THAT OCCURRED IN MARGINAL INCOMETAX RATES UNDER THE 1986 TAX REFORM ABOUT 16 MILLION OR 424 OF US BUSINESSES NOW FILE UNDER THE PERSONAL TAX CODE THAT RATE COMPARES TO 22 IN 1985 AND 155 IN 1970 SUBCHAPTER S INCOME NOW ACCOUNTS FOR MORE THAN 10 OF ALL INCOME ON RETURNS EXCEEDING 200000 AND 22 OF INCOME ON RETURNS EXCEEDING 1 MILLION THE NUMBER OF SOLE PROPRIETORSHIP TAX RETURNS IN THE US A FIGURE THAT INCLUDES THE SELFEMPLOYED ALSO HAS INCREASED TO 15 MILLION OR 14 OF THE LABOR FORCE IN 1991 FROM 58 MILLION OR 8 OF THE LABOR FORCE IN 1970 IF WE ADD SUBCHAPTER S RETURNS AND SOLE PROPRIETORSHIP RETURNS ABOUT 89 OF ALL TAX RETURNS WITH SIGNIFICANT BUSINESS INCOME ARE SUBJECT TO PERSONAL TAX RATES THE ADMINISTRATION CONTENDS THAT ITS TAX PROGRAM WILL RAISE THE TAX RATE ON ONLY ABOUT 300000 SMALL BUSINESSES BUT SINCE MORE THAN 60 OF ALL SUBCHAPTER S INCOME ACCRUES TO PEOPLE WITH INCOMES OF MORE THAN 200000 THE CLINTON TAX PROGRAM WILL STILL IMPOSE A LARGE FISCAL BURDEN ON BOTH SUCCESSFUL ENTREPRENEURS AND INVESTORS WILLING TO FINANCE SMALL FIRMS CONVERTING TO A CORPORATE TAX STATUS IN ORDER TO AVOID THE HIGHER RATES ON PERSONAL INCOME ALSO WOULD EXPOSE THESE ENTREPRENEURS TO THE PROBLEM OF DOUBLE TAXATION IF OWNERS OF SMALL FIRMS FILE A CORPORATE TAX RETURN THEY HAVE TO PAY A TAX ON THEIR INCOME TWICE FIRST AS A COMPANY AND THEN AS A BENEFICIARY OF A DIVIDEND OR CAPITAL GAIN AS A RESULT MANY SMALL BUSINESS OWNERS WILL BE RELUCTANT TO CONVERT BACK TO A CORPORATE TAX STATUS AND THE CLINTON PROGRAM WILL PRODUCE A DE FACTO TAX RATE FOR SMALL FIRMS THAT WILL OFTEN EXCEED THE TAX RATE ON LARGE CORPORATIONS THE LARGE INCREASE IN THE EFFECTIVE TAX RATE ON MANY SMALL FIRMS IS LIKELY TO RETARD THE ECONOMY'S RECOVERY MOMENTUM BECAUSE SMALL FIRMS ACCOUNT FOR PRACTICALLY ALL THE JOB CREATION IN THE US ECONOMY SINCE 1990 THE BIG FORTUNE 500 COMPANIES HAVE REDUCED THEIR TOTAL EMPLOYMENT TO 118 MILLION FROM 162 MILLION YET THE ECONOMY HAS PRODUCED 20 MILLION NEW JOBS BECAUSE OF EMPLOYMENT GROWTH AT SMALLER FIRMS ACCORDING TO A RECENT SURVEY BY DUN & BRADSTREET THIS TWOTIER HIRING PATTERN IS LIKELY TO CONTINUE DURING 1993 ITS RECENT SURVEY FOUND THAT COMPANIES WITH FEWER THAN 99 EMPLOYEES WILL ACCOUNT FOR 76 OF ALL PROJECTED JOB GROWTH IN THE US THIS YEAR COMPARED WITH A SMALL DECLINE AT COMPANIES EMPLOYING MORE THAN 25000 PEOPLE IN FACT THE CLINTON FISCAL PROGRAM WILL BE HITTING THE SMALL BUSINESS SECTOR AT PRECISELY THE MOMENT WHEN THERE WERE SIGNS THAT THE CREDIT CRUNCH WHICH STRANGLED SMALLBUSINESS CREATION DURING THE BUSH YEARS WAS EASING THE RECENT RECOVERY IN BANK PROFITABILITY IS ENCOURAGING MORE COMPETITION TO MAKE LOANS FEDERAL BANK EXAMINERS ARE TRYING TO RELAX THE REGULATORY GUIDELINES THAT HURT SMALL BUSINESS LENDING IN THE EARLY 1990S WALL STREET WILL PROBABLY UNDERWRITE SOME 50 BILLION TO 60 BILLION IN JUNK BONDS THIS YEAR COMPARED WITH ONLY 1 BILLION IN 1990 THE PROPOSED INCREASE IN FEDERAL MARGINAL INCOMETAX RATES WILL ALSO WORSEN THE CURRENT REGIONAL DIVERGENCIES IN ECONOMIC PERFORMANCE BY FALLING DISPROPORTIONATELY ON CALIFORNIA NEW ENGLAND AND NEW YORK THESE REGIONS ALREADY PAY AN ABOVE AVERAGE SHARE OF THE NATIONAL INCOME TAX BURDEN AS WELL AS HAVING HIGH LEVELS OF STATE INCOME TAX INDEED THE INCOMETAX HIKES ENACTED DURING 1990 DID NOT PRODUCE ANY REVENUE GROWTH DURING 1991 PARTLY BECAUSE OF THE ECONOMIC PROBLEMS OF THESE TRADITIONALLY MORE AFFLUENT STATES INSTEAD OF EXPANDING IN LINE WITH THE HIKE IN MARGINAL TAX RATES TO 31 FROM 28 TAX PAYMENTS FROM SOCALLED HIGHINCOME TAXPAYERS FELL BY 61 DURING 1991 COMPARED WITH A GAIN OF 1 FOR OTHER INCOME CLASSES SUBCHAPTER S INCOME EVEN DROPPED BY 105 FOR THE TOP 850000 TAXPAYERS COMPARED WITH A GAIN OF 62 FOR EVERYONE ELSE THE ADMINISTRATION WOULD LIKE TO OFFSET SOME OF THE INCOMETAX HIKES ON SMALL FIRMS BY OFFERING THEM NEW TAX ALLOWANCES FOR EQUIPMENT PURCHASES BUT MOST BUSINESS OWNERS WOULD RATHER HAVE A LOWER TAX RATE THAN A NEW TAX ALLOWANCE BECAUSE THE SENATE HAS SCALED BACK THE SIZE OF THE TAX ALLOWANCE FOR EQUIPMENT PURCHASES IT IS ALSO DOUBTFUL THAT THE ALLOWANCE WILL OFFSET THE INCOME LOSSES FROM THE HIGHER MARGINAL TAX RATES AT MANY FIRMS IN ADDITION TO THE MICROECONOMIC DISTORTIONS CAUSED BY HIGH TAX RATES THE CLINTON ADMINISTRATION IS WASTING A UNIQUE POLITICAL OPPORTUNITY TO ADDRESS THE COUNTRY'S MACROECONOMIC PROBLEMS OF LOW SAVINGS AND INVESTMENT INSTEAD THE PRESIDENT IS PURSUING TAX POLICIES THAT ARE LIKELY TO INHIBIT INVESTMENT DECISIONS AND EMPLOYMENT CREATION BY BOTH LARGE AND SMALL COMPANIES THE US HAS THE LOWEST PRIVATE SAVINGS RATE IN THE INDUSTRIAL WORLD PARTLY BECAUSE IT DEPENDS FAR MORE HEAVILY ON INCOME TAX THAN OTHER COUNTRIES WHILE THE CONSUMPTIONTAX SHARE OF GROSS DOMESTIC PRODUCT IS ONLY ABOUT 2 TO 3 COMPARED WITH 7 TO 8 IN OTHER INDUSTRIAL COUNTRIES THE ADMINISTRATION HAD ORIGINALLY HOPED TO NARROW THE CONSUMPTION TAX GAP WITH OTHER COUNTRIES BY INTRODUCING THE BTU TAX BUT THE BTU TAX CREATES SO MANY MICROECONOMIC DISTORTIONS FOR ENERGY CONSUMING INDUSTRIES THAT CONGRESS IS LIKELY TO REJECT IT IF THE BTU TAX IS ELIMINATED THE CLINTON PROGRAM WILL HAVE PRODUCED A LARGE INCREASE IN MARGINAL INCOMETAX RATES WITHOUT ACHIEVING ANY FUNDAMENTAL TAX RESTRUCTURING TO LESSEN THE RISK OF A FURTHER DECLINE IN AMERICA'S PRIVATE SAVINGS RATE THE ADMINISTRATION WILL ALSO HAVE GIVEN AWAY AN IMPORTANT FISCAL BARGAINING CHIP WITHOUT HAVING RESOLVED THE ISSUE OF HOW IT WILL PAY FOR HEALTH CARE THE US HAS A MUCH LOWER TAX AND GOVERNMENT EXPENDITURE SHARE OF GDP THAN OTHER INDUSTRIAL COUNTRIES BECAUSE NEARLY 60 OF HEALTH CARE SPENDING OCCURS IN THE PRIVATE SECTOR COMPARED WITH ONLY 20 TO 30 ELSEWHERE BUT WITH THE ADMINISTRATION COMMITTED TO A SIGNIFICANT EXPANSION OF GOVERNMENT'S HEALTH CARE ROLE THE GOVERNMENT SHARE OF GDP IS LIKELY TO RISE BY 4 TO 5 AND THE TAXATION GAP WITH OTHER INDUSTRIAL COUNTRIES WILL NARROW THE PROSPECT OF FINANCING HEALTH CARE ON TOP OF THIS YEAR'S LARGE INCREASE IN MARGINAL INCOMETAX RATES HAS TRIGGERED SUCH A SHARP DECLINE IN BUSINESS CONFIDENCE THAT FIRMS WILL PROBABLY CURTAIL HIRING THIS AUTUMN THE FINAL PROBLEM WITH THE ADMINISTRATION'S TAX PROGRAM IS THAT IT COULD RETARD COMPLETION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE NORTH AMERICAN FREE TRADE AGREEMENT THESE ARE ESSENTIAL FOR CREATING A PROSPEROUS WORLD ECONOMY FOR US FIRMS LARGE AND SMALL IN 1992 GOV CLINTON PROMISED TO EXPAND FEDERAL SPENDING ON VOCATIONAL EDUCATION AND TRADE ADJUSTMENT PROGRAMS TO LESSEN PUBLIC OPPOSITION TO FREE TRADE BUT THOSE PROMISES ARE NOW COLLIDING WITH THE 1990 BUDGET ACCORD RESTRAINTS ON DISCRETIONARY SPENDING AS IT WILL BE IMPOSSIBLE TO SATISFY MR CLINTON'S CAMPAIGN PLEDGES WITHOUT FASTER GROWTH OF TAX RECEIPTS THE CONTRACTIONARY EFFECTS OF THE PRESIDENT'S FISCAL PROGRAM COULD INADVERTENTLY ENCOURAGE THE ALREADY STRONG PROTECTIONIST SENTIMENTS OF THE CONGRESS YET AS A RESULT OF THE COLLAPSE OF COMMUNISM AND THE SPREAD OF LIBERAL ECONOMIC IDEAS TO THE DEVELOPING COUNTRIES NEARLY FOUR BILLION PEOPLE ARE NOW POISED TO REENTER THE GLOBAL MARKETPLACE FOR GOODS AND CAPITAL AFTER SUFFERING SEVERAL DECADES OF STAGNATION UNDER MARXIST OR MERCANTILIST ECONOMIC POLICIES WITHOUT AMERICAN SUPPORT FOR FREE TRADE THIS INTEGRATION PROCESS WILL LOSE MOMENTUM AND THE RECOVERY NOW OCCURRING IN THE NEWLY MARKETORIENTED ECONOMIES WILL PETER OUT IN MEXICO FOR EXAMPLE THE ECONOMY HAS STALLED AND DEMAND FOR US EXPORTS IS DECLINING BECAUSE THE GOVERNMENT HAS BEEN FORCED TO RAISE INTEREST RATES IN ORDER TO STABILIZE THE PESO IN THE FACE OF DOUBTS ABOUT CONGRESS ENACTING NAFTA IN 1992 THE DEMOCRATS TRIED TO DISTINGUISH THEMSELVES FROM THE REPUBLICANS BY PROMOTING THE CONCEPT OF GROWTH WITH EQUITY NOT JUST GROWTH BUT BECAUSE OF THE LARGE STRUCTURAL DEFICIT INHERITED FROM THE 1980S IT WILL BE IMPOSSIBLE TO INCREASE PUBLIC SPENDING ON PROGRAMS DESIGNED TO PROMOTE SOCIAL EQUITY WITHOUT ALSO IMPROVING THE ECONOMY'S GROWTH PERFORMANCE IN PROPOSING A FISCAL POLICY THAT IS SO HOSTILE TO GROWTH THE CLINTON ADMINISTRATION WILL NOT MERELY DAMPEN THE RECOVERY NOW OCCURRING IN SMALL BUSINESS PROFITABILITY AND EMPLOYMENT IT WILL ALSO INCREASE ECONOMIC INSECURITY AMONG US COMPANIES AND HOUSEHOLDS AT PRECISELY THE MOMENT WHEN SUCH SENTIMENTS COULD UNDERMINE OUR ABILITY TO TAKE ADVANTAGE OF THE EXTRAORDINARY GLOBAL OPPORTUNITIES MADE POSSIBLE BY THE COLD WAR'S END MR HALE IS CHIEF ECONOMIST OF KEMPER FINANCIAL COMPANIES IN CHICAGO 9307300206 930730 BUSINESS BRIEF ITT SECONDQUARTER NET INCOME SURGED AS MOST BUSINESSES POSTED STRONG GAINS NEW YORK ITT CORP'S NET INCOME MORE THAN DOUBLED IN THE SECOND QUARTER AS SEVEN OF ITS EIGHT BUSINESS UNITS POSTED SIGNIFICANTLY IMPROVED OPERATING RESULTS SECONDQUARTER NET CLIMBED TO 267 MILLION OR 215 A SHARE FROM 106 MILLION OR 84 CENTS A SHARE A YEAR EARLIER SALES ROSE 3 TO 551 BILLION FROM 536 BILLION THE LATEST PERIOD INCLUDED TWO MAJOR AFTERTAX CHARGES 50 MILLION IN ESTIMATED LOSSES ON EARLY RETIREMENT OF DEBT AND 13 MILLION FOR THE COST OF PLANNED STAFF REDUCTIONS HOWEVER THEY WERE OFFSET BY A 63 MILLION AFTERTAX GAIN ON THE SALE OF ITS CONSUMER SMALLLOAN BUSINESS ONE ANALYST SAID THE RESULTS WERE BETTER THAN HE HAD EXPECTED AND INDICATED THAT COSTCUTTING AND RESTRUCTURING MOVES ARE PRODUCING RESULTS OPERATING EARNINGS AT ITT'S INSURANCE UNIT SOARED TO 187 MILLION FROM 41 MILLION A YEAR EARLIER DALE COMEY EXECUTIVE VICE PRESIDENT IN CHARGE OF THE FINANCIALSERVICES GROUP SAID HARTFORD'S EXPOSURE TO FLOOD DAMAGE IS LIMITED AND ALL WITHIN THE EXPECTED RANGE FOR THE YEAR AT ITT FINANCIAL A COMMERCIAL AND RESIDENTIAL LENDING UNIT OPERATING NET ROSE 15 TO 75 MILLION FROM 65 MILLION AMONG MANUFACTURING OPERATIONS THE DEFENSE AND ELECTRONICS DIVISION POSTED OPERATING NET OF 18 MILLION MORE THAN DOUBLING THE YEAREARLIER 7 MILLION MAINLY DUE TO COSTCUTTING AND RESTRUCTURING FRANKLY MARKETS ARE NOT HEALTHY SAID TRAVIS ENGEN EXECUTIVE VICE PRESIDENT IN CHARGE OF MANUFACTURED PRODUCTS NOTING THE SLUGGISH EUROPEAN ECONOMY AND CUTBACKS IN US MILITARY PROGRAMS HE SAID THE AUTOMOTIVE DIVISION'S 53 SALES GAIN IN THE QUARTER WAS DRIVEN SUBSTANTIALLY BY NEWPRODUCT PENETRATION HOTEL OPERATOR ITT SHERATON REVERSED LAST YEAR'S SECONDQUARTER LOSS OPERATING PROFIT TOTALED 21 MILLION COMPARED WITH THE YEAREARLIER LOSS OF 14 MILLION COMMENTING ON THE RESULTS ANALYST PHUA YOUNG OF LEHMAN BROTHERS SAID SEVEN OF THE EIGHT HAD BETTER RESULTS THAN I WAS LOOKING FOR EVERYTHING CLICKED LOOKING AHEAD MR YOUNG SAID THAT TYPICALLY THE THIRD QUARTER IS ITT'S SLOWEST BECAUSE EUROPE GOES ON VACATION IN AUGUST AND THE US AUTOMOTIVE INDUSTRY IS CHANGING OVER TO NEW MODELS HE ESTIMATES PERSHARE EARNINGS OF AROUND 170 UP FROM 80 CENTS A YEAR EARLIER BUT HE NOTED THAT 1992'S RESTRUCTURING CHARGES AND CATASTROPHE EXPENSES MAKE FOR VERY EASY YEAROVERYEAR COMPARISONS 9307300205 930730 SOME SAY PONDERING WASHINGTON ALSO CAN CAUSE VIOLENT REACTIONS BY RACHEL KESSLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS WE PREDICTED TOTAL VIOLENT CRIME IN THE DISTRICT OF COLUMBIA IS DOWN AND PRESIDENT CLINTON IS RIDING HIGH SO CLAIM THE BACKERS OF AN EXPERIMENTAL PROJECT TO CUT CRIME AND REDUCE GOVERNMENT GRIDLOCK IN THE NATION'S CAPITAL THEY CREDIT THE GROUP PRACTICE OF TRANSCENDENTAL MEDITATION BY 4000 EXPERTS FROM 65 COUNTRIES WHO HAVE BEEN IN WASHINGTON FOR 55 DAYS THE 5 MILLION PROJECT COSPONSORED BY THE INSTITUTE FOR SCIENCE TECHNOLOGY AND PUBLIC POLICY AND THE CITIZENS FOR A CRIMEFREE DC STARTED ON JUNE 7 BUT THE TM EXPERTS LEAVE TOMORROW THE INSTITUTE CLAIMS THAT DURING THE FIRST SEVEN WEEKS OF THE PROJECT VIOLENT CRIME IN WASHINGTON WAS DOWN 13 FROM A YEAR EARLIER BUT THE WASHINGTON POLICE DEPARTMENT SAYS IT CAN'T CONFIRM THAT FIGURE THERE WERE 27 MORE HOMICIDES DURING THE PERIOD COMPARED WITH A YEAR EARLIER THE GROUP SAYS BUT HOMICIDES ARE THE TOUGHEST NUT TO CRACK EXPLAINS CRAIG BERG A SPOKESMAN FOR THE INSTITUTE BECAUSE KILLERS ARE HIGHLY STRESSED INDIVIDUALS MR BERG IS HOPEFUL THOUGH THAT WITH INTENSIFIED TRANSCENDENTAL MEDITATION EFFORTS IN FUTURE PROJECTS THE NUMBER OF HOMICIDES WILL DECREASE GROUP MEDITATION THE INSTITUTE SAYS PRODUCES COLLECTIVE PURE CONSCIOUSNESS THAT REDUCES STRESS AND CRIME AND PROMOTES HARMONY IN SOCIETY BY CREATING AN ATMOSPHERE OF HARMONYA PROJECT SUMMARY SAYS THE TRANSCENDENTAL MEDITATORS ARE THEREBY PROMOTING THE SUCCESS OF THE PRESIDENT AND CONGRESS THE SUMMARY GOES ON TO SAY THAT SINCE THE PROJECT BEGAN PRESIDENT CLINTON'S CONFIDENCE HAS STEADILY GROWN AND HIS ADMINISTRATION HAS BEEN MET WITH INCREASING APPRECIATION AND SUCCESS BOTH AT HOME AND ABROAD IN POLLS ON MR CLINTON ACCORDING TO REPUBLICAN POLITICAL POLLSTER VINCE BREGLIO THERE IS A BIT OF AN UPTICK NATIONALLY BUT IF YOU LOOK AT APPROVAL RATINGS STATE BY STATE THE NUMBERS AREN'T GOOD AS FOR HARMONY BETWEEN MR CLINTON AND CONGRESS THAT IS CURRENTLY BEING TESTED IN THE DEBATE OVER A BUDGET BILL WHAT WILL HAPPEN AFTER THE MEDITATION EXPERTS LEAVE TOWN TOMORROW I FEAR THERE WILL BE A RETURN TO PREVIOUS LEVELS OF CRIME IN DCSAYS JOHN HAGELIN A HARVARDTRAINED QUANTUM PHYSICIST WHO IS DIRECTOR OF THE INSTITUTE WHICH IS PART OF MAHARISHI INTERNATIONAL UNIVERSITY IN FAIRFIELD IOWA I EXPECT TO SEE A RETURN TO GRIDLOCK IN CONGRESS 9307300204 930730 LAW LEGAL BEAT ANTITRUST WOES AREN'T PREDICTED FOR MERCK'S ALLIANCE WITH MEDCO BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL DON'T EXPECT MERCK & CO'S AGREEMENT TO MERGE WITH MEDCO CONTAINMENT SERVICES INC TO TRIGGER AGGRESSIVE SCRUTINY BY THE CLINTON ADMINISTRATION THE MAIN REASON ANTITRUST LAWYERS SAY IS THAT THE DEAL IS NEARLY CERTAIN TO INTENSIFY PRICE COMPETITION AMONG DRUG MAKERS THAT MAKES IT AN UNATTRACTIVE TARGET FOR ANTITRUST ENFORCERS PARTICULARLY AT A TIME WHEN THE ADMINISTRATION IS WORKING HARD TO LOWER OVERALL HEALTH COSTS THIS IS SO THE LAWYERS SAY DESPITE THE FACT THAT ADMINISTRATION OFFICIALS HAVE PROMISED TO STEP UP ANTITRUST ENFORCEMENT AFTER A PERIOD IN THE 1980S WHEN MANY DEMOCRATS MAINTAIN MERGERS RECEIVED SCANT SCRUTINY FROM REAGAN AND BUSH APPOINTEES I THINK THE GOVERNMENT WILL BE MORE AGGRESSIVE ON ANTITRUST BUT IT'S NOT GOING TO START IN HEALTH CARE SAID GARRET RASMUSSEN AN ANTITRUST LAWYER AT THE WASHINGTON LAW FIRM PATTON BOGGS & BLOW THE GOVERNMENT WOULDN'T WANT TO SEND A SIGNAL AT THIS TIME THAT EFFORTS WHICH COULD HAVE A SIGNIFICANT CHANCE OF LOWERING PRICES COULD BE SUBJECT TO STRICT ANTITRUST SCRUTINY THE FEDERAL TRADE COMMISSION AND THE JUSTICE DEPARTMENT MUST DECIDE WITHIN 30 DAYS WHETHER TO APPROVE THE DEAL OR SEEK ADDITIONAL INFORMATION ABOUT HOW IT WILL AFFECT COMPETITION IN THE DRUG INDUSTRY MERCK THE WORLD'S LARGEST DRUG COMPANY AND MEDCO THE NATION'S LARGEST MARKETER OF DISCOUNT PRESCRIPTION MEDICINES AGREED TO THE 6 BILLION MERGER WEDNESDAY GINA TALAMONA A JUSTICE DEPARTMENT SPOKESWOMAN SAID THE DEPARTMENT IS AWARE OF THE PROPOSED MERGER BUT DOESN'T YET KNOW WHETHER THE FTC OR THE JUSTICE DEPARTMENT WILL BE EXAMINING THE DEAL ANTITRUST LAWS ARE DESIGNED TO PROMOTE FREE COMPETITION AND TO PREVENT COMPANIES FROM TAKING ADVANTAGE OF SMALLER OR LESS POWERFUL FIRMS MORE BROADLY THE LAWS ARE SUPPOSED TO PROTECT CONSUMERS FROM UNFAIRLY HIGH PRICES WHAT MAKES ANTITRUST ENFORCEMENT PARTICULARLY UNLIKELY IN THIS CASE IS THAT IT IS A VERTICAL MERGER A COMBINATION BETWEEN A SUPPLIER AND A BUYER TYPICALLY SUCH DEALS OCCUR SO THAT THE MERGED COMPANY CAN BRING ITS PRODUCTS TO THE MARKET MORE EFFICIENTLY THEREBY REDUCING PRICES FOR CONSUMERS SINCE THE 1970S THE GOVERNMENT HAS REFRAINED ALMOST ENTIRELY FROM CHALLENGING VERTICAL MERGERS IT'S BEEN A DEAD LETTER NOW FOR 12 YEARS SAID ROBERT PITOFSKY A PROFESSOR AT GEORGETOWN UNIVERSITY LAW CENTER BY CONTRAST HORIZONTAL MERGERS WHICH UNITE COMPETITORS HAVE LED TO SOMEWHAT CLOSER SCRUTINY IN RECENT YEARS WHEN COMPETITORS MERGE THEY MAY CORNER ENOUGH OF THE MARKET TO SET PRICES WITHOUT REGARD FOR WHETHER OTHER COMPANIES CHARGE LESS THE ONLY WAY THE MERCKMEDCO MERGER COULD THREATEN COMPETITION ANTITRUST SPECIALISTS SAY IS IF THE COMBINED COMPANY SO DOMINATES THE MARKET THAT IT IS ABLE TO KEEP OTHER COMPANIES FROM GETTING THEIR DRUGS TO CONSUMERS BUT THE DRUG INDUSTRY IS PROBABLY FRAGMENTED ENOUGH TO PREVENT THAT NO DRUG COMPANY INCLUDING MERCK HAS MORE THAN 10 OF THE US PRESCRIPTION PHARMECEUTICAL BUSINESS AND MEDCO DISTRIBUTES TO 10 TO 20 OF PRESCRIPTIONDRUG USERS THE COMPANIES' COMPETITORS COULD BRING THEIR OWN ANTITRUST SUITS TO CHALLENGE THE DEAL BUT THERE WERE NO IMMEDIATE SIGNS OF THIS HENRY BLISSENBACH PRESIDENT OF DIVERSIFIED PHARMACEUTICAL SERVICES INC A UNIT OF UNITED HEALTHCARE CORP AND A MEDCO RIVAL HAS SAID THAT HE BELIEVES THE MERGER COULD RAISE ANTITRUST PROBLEMS BUT EVEN IF A SUIT IS FILED MANY LAWYERS ARE PREDICTING THAT THE EFFORT WILL FARE NO BETTER IN COURT THAN A GOVERNMENT CASE SOME OF THESE COMPETITORS OF MEDCO WILL MAKE A FUSS AND WILL COMPLAIN MR RASMUSSEN SAID BUT HE ADDED I THINK IT'S UNLIKELY THEY'LL FILE SUIT BECAUSE THEIR LIKELIHOOD OF SUCCEEDING IN THAT SUIT WOULD BE VERY SLIM AND THEY WOULDN'T WANT TO INCUR THE COST INDEED SOME LAWYERS SAID COMPETITORS MAY BE COMPLAINING BECAUSE THEY FEAR THE MERGER WOULD MAKE THE INDUSTRY EVEN MORE COMPETITIVE PUSHING DOWN PRICES AND REVENUES IN CASES INVOLVING VERTICAL MERGERS A LOT OF TIMES WHEN COMPETITORS ARE COMPLAINING WHAT THEY'RE COMPLAINING ABOUT IS THAT THE MERGED ENTITY WILL BE MORE EFFICIENT AND THEY'LL HAVE MORE TROUBLE COMPETING AGAINST IT SAID JEFF MILES AN ANTITRUST LAWYER AT THE LAW FIRM OBER KALER GRIMES & SHRIVER IN WASHINGTON AFTER A JURY DEADLOCKED A JUDGE DISMISSED INFLUENCEPEDDLING CHARGES AGAINST E ROBERT WALLACH THE LAST OF THE DEFENDANTS IN THE WEDTECH CORP SCANDAL THE FEDERAL JURY IN MANHATTAN HAD DELIBERATED THREE AND A HALF DAYS AND DEADLOCKED ON ALL THREE COUNTS DISTRICT JUDGE RICHARD OWEN ADMONISHED JURY MEMBERS TO TRY AGAIN BUT THEY WERE STILL STUCK YESTERDAY AFTERNOON THIS WAS THE SECOND TIME MR WALLACH HAD BEEN TRIED ON ALLEGATIONS THAT DURING THE 1980S HE ILLEGALLY TRADED ON HIS FRIENDSHIP WITH THENATTORNEY GENERAL EDWIN MEESE III TO HELP WEDTECH A BRONX NY CONTRACTOR WIN DEFENSE CONTRACTS AND TO EARN 1 MILLION HIMSELF IN 1989 A JURY CONVICTED HIM OF CONSPIRACY AND FRAUD BECAUSE THEY BELIEVED HE SENT WEDTECH PHONY BILLS TO CONCEAL WHAT HE REALLY WAS DOING FOR THE COMPANY BUT THE VERDICT WAS OVERTURNED ON THE GROUND THAT A GOVERNMENT WITNESS HAD LIED MR WALLACH WHO ARGUED HIS OWN CASE DURING THE RECENT RETRIAL HAS STEADFASTLY MAINTAINED HIS INNOCENCE THIS HAS BEEN GOING ON FOR SIX AND A HALF YEARS AND HOPEFULLY HE WON'T BE RETRIED SAID ROBERT J GIUFFRA JR AN ATTORNEY IN NEW YORK WHO HELPED MR WALLACH KATE COSENZA A SPOKESWOMAN FOR THE US ATTORNEY'S OFFICE IN MANHATTAN SAID THE GOVERNMENT HASN'T DECIDED WHETHER TO REPROSECUTE US VS WALLACH US DISTRICT COURT S 87CR985 RO JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9307300203 930730 ECONOMY CONFEREES SET LOAN CHANGES FOR STUDENTS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE AND SENATE NEGOTIATORS AGREED TO AIM TOWARD A 60 DIRECT GOVERNMENT LENDING PROGRAM FOR STUDENT LOANS BY THE END OF FIVE YEARS REPLACING MANY OF THE 8000 BANKS AND THRIFTS THAT NOW MAKE LOANS FOR EDUCATION THE COMPROMISE REACHED LATE LAST NIGHT AFTER FOUR DAYS OF MEETINGS RESOLVES THE DIFFERENCE BETWEEN THE HOUSE PLAN TO MAKE 100 OF THE LOANS DIRECTLY BY THE GOVERNMENT THROUGH EDUCATIONAL INSTITUTIONS AND THE SENATE PROPOSAL TO ALLOW BANKS TO CONTINUE TO MAKE 50 OF THE LOANS BY THE END OF FOUR YEARS PRESIDENT CLINTON HAD PROPOSED DIRECT GOVERNMENT LENDING AS A WAY TO SAVE 43 BILLION OVER FIVE YEARS AND TO MAKE THE CURRENT PUBLICPRIVATE PROGRAM MORE EFFICIENT THE CHANGE WOULD HAVE A HUGE IMPACT ON THE NATION'S COLLEGES AND TRADE SCHOOLS AS WELL AS THE 34 MILLION STUDENTS WHO CURRENTLY BORROW 15 BILLION ANNUALLY THE PROGRAM ALSO IS LIKELY TO IMPOSE NEW COSTS ON THE STUDENT LOAN MARKETING ASSOCIATION THOUGH THE FULL BURDEN ON SALLIE MAE AND ON THE FINANCIAL INSTITUTIONS THAT NOW MAKE THE LOANS WON'T BE WORKED OUT UNTIL TODAY THESE ARE THE BIGGEST CHANGES IN THE STUDENTLOAN PROGRAM IN THE 30YEAR HISTORY OF THE PROGRAM SAID TERRY HARTLE VICE PRESIDENT OF GOVERNMENT RELATIONS AT THE AMERICAN COUNCIL ON EDUCATION A COLLEGE GROUP THE STUDENT LENDING INDUSTRYBANKS SALLIE MAE AND THE 46 AGENCIES THAT GUARANTEE THE LOANS SPENT MILLIONS OF DOLLARS LOBBYING AGAINST THE CLINTON PROPOSAL WHICH WOULD END A LUCRATIVE BUSINESS FOR THEM IN THE END THE GROUPS LARGELY FAILED TO PRESERVE THE CURRENT PROGRAM THEY MANAGED TO SAVE LESS THAN HALF OF THEIR LENDING BUSINESS AND CAN EXPECT TO SEE THEIR COSTS INCREASE AND THEIR FEES AND SUBSIDIES SHRINK AS CONGRESS COMPLETES WORK ON THE DETAILS THE SENATE FOUGHT TO PRESERVE PART OF THE CURRENT PROGRAM THE GOAL WAS TO RUN GOVERNMENT LENDING AND THE CURRENT PUBLICPRIVATE PROGRAM SIDE BY SIDE FOR SEVERAL YEARS WHILE THE EDUCATION DEPARTMENT PHASED IN DIRECT LENDING UNDER THE COMPROMISE 5 OF THE LOANS WOULD BE MADE DIRECTLY IN THE 199495 SCHOOL YEAR FOLLOWED BY 40 THE NEXT YEAR AT LEAST 50 IN THE THIRD AND FOURTH YEARS AND 60 OR MORE IN THE FIFTH YEAR STUDENTS WOULD BENEFIT IN TWO WAYS THE INTEREST RATES THEY PAY ON LOANS WOULD FALL AND THEY WOULD HAVE A BROAD RANGE OF REPAYMENT OPTIONS GRADUATES NOW MUST REPAY LOANS IN EQUAL MONTHLY INSTALLMENTS OVER 10 YEARS UNDER THE NEW PLAN WHICH IS MOVING THROUGH CONGRESS AS PART OF THE BUDGET PACKAGE STUDENTS WOULD BE ABLE TO STRETCH OUT PAYMENTS AND USE A GRADUATEDPAYMENT PLAN WITH LOW INITIAL PAYMENTS RISING WITH THEIR INCOME 9307300202 930708 COUNTERPOINT RESCUE NAFTA SAFEGUARD THE ENVIRONMENT BY MICHAEL MCCLOSKEY ARE YOU TRYING TO KILL NAFTA IN THE COURTS ONE REPORTER ASKED RECENTLY WHEN US DISTRICT COURT JUDGE CHARLES RICHEY RULED THAT THE TRADE OFFICE IS OBLIGATED TO WRITE AN ENVIRONMENTAL IMPACT STATEMENT ON THE NORTH AMERICAN FREE TRADE AGREEMENT IS THE SIERRA CLUB WHICH WAS A PLAINTIFF IN THE CASE OUT TO GET NAFTA ONE WAY OR ANOTHER THE ANSWER IS NO THE SIERRA CLUB IS NOT A PROTECTIONIST GROUP WE HAVE NO QUARREL WITH REDUCING AND REMOVING TARIFFS WE ARE NOT INSERTING OURSELVES IN TRADE AGREEMENTS TO CREATE HAVOC HOWEVER THE ENVIRONMENT IS AFFECTED BY NAFTA PAST TRADE AGREEMENTS HAVE ALREADY AGGRAVATED ENVIRONMENTAL CONDITIONS ALONG THE USMEXICAN BORDER AND THIS ONE COULD MAKE THEM WORSE IF THE AGREEMENT DOES PRODUCE ECONOMIC BENEFITS IT WILL DO SO BY INCREASING INDUSTRIALIZATION AND THAT BRINGS POLLUTION WITH IT WE COULD END UP WITH TWICE AS MANY FACTORIES ALONG THE BORDER EVEN IF SOME NEW ONES ARE BUILT IN THE INTERIOR OF MEXICO FOR ITS OWN MARKET THE QUESTION IS WHETHER THERE IS ANY ASSURANCE THAT A REASONABLE PORTION OF THE ADDED ECONOMIC BENEFITS WILL BE PLOWED BACK INTO PREVENTING AND ABATING THAT POLLUTION THE PRESENT AGREEMENT PROVIDES NO ASSURANCE THAT WILL BE DONE THE PRESENT AGREEMENT RELIES ON A PARALLEL AGREEMENT THAT LACKS ANY TEETH AND A MECHANISM TO REGULARLY PROVIDE FUNDING WE ESTIMATE THAT IT WILL COST 20 BILLION TO CLEAN UP CONDITIONS ALONG OUR SOUTHERN BORDER VAGUE HOPES THAT MORE WEALTH WILL TRANSLATE INTO CONCRETE ACTION ARE LIKELY TO LEAVE US AS DISAPPOINTED AS IN THE PAST THE AMERICAN MEDICAL ASSOCIATION HAS FOUND THE BORDER ENVIRONMENT TO BE A VIRTUAL CESSPOOL US AUTHORITIES HAD HOPED THAT ALL TOXIC WASTES PRODUCED IN ASSEMBLY PLANTS JUST ACROSS THE BORDER WOULD BE RETURNED TO THE US FOR SAFE PROCESSING ALMOST NONE OF THEM HAVE BEEN CONCRETE PLANS WITH FUNDING AND CLEANUP SCHEDULES ARE NEEDED AS ARE COMMITMENTS TO ACTION IF A REALLY GOOD BORDER CLEANUP PLAN WERE TO BE DEVELOPED THE ENVIRONMENTAL COMMUNITY WOULD HAVE SOMETHING TO GAIN WITH NAFTA AS IT IS THE PLAN IS NOTHING BUT WORDS PROMISING MORE DISCUSSION AND MEETINGS AND INACTION IT WILL FOLLOW IN THE WAKE OF THE EMPTY LA PAZ AGREEMENT OF 1983 THE TRADE AGREEMENT IS ALSO CONTROVERSIAL WITH ENVIRONMENTALISTS BECAUSE IT INTRUDES INTO THE FIELD OF ENVIRONMENTAL POLICYSETTING IT IS NOT JUST ABOUT TRADE IT IS ABOUT HOW THE PARTIES SET STANDARDS FOR POLLUTION CONTROL ABOUT HOW STRICT THEY CAN BE AND ABOUT WHAT STATES AND LOCALITIES CAN DO IT IS ABOUT HAMSTRINGING THE SOVEREIGNTY OF THE US GOVERNMENT IF THE NEGOTIATIONS HAD STEERED CLEAR OF TRYING TO TELL OUR GOVERNMENT WHAT IT CAN DO IN THE ENVIRONMENTAL FIELD WE WOULD BE MUCH LESS CONCERNED BUT NAFTA DOES INTRUDE IN WAYS THAT CAN CAST A CLOUD ON OUR ABILITY TO HAVE THE STRONG PROGRAMS THE AMERICAN PUBLIC WANTS FOR INSTANCE IT INFRINGES ON US LAWS REGULATING THE SAFETY OF IMPORTED FOODS SETTING BIZARRE REQUIREMENTS THAT LAWS GOVERNING PESTICIDE RESIDUES MAY NOT BE ABLE TO MEET IT WOULD CREATE OBLIGATIONS TO MOVE OUR POLLUTION LAWS TOWARD INTERNATIONAL STANDARDS WHICH GENERALLY LAG BEHIND OURS THIS WOULD PUSH US TOWARD WEAKENING OUR LAWS IT WOULD EXPOSE THE STATES TO PRESSURES TO WEAKEN THEIR LAWS IT WOULD ALSO PUT A GREAT BODY OF US WILDLIFE LAWS AT ODDS WITH NAFTA THESE ARE LAWS SUCH AS THOSE PREVENTING THE IMPORT OF ELEPHANT IVORY PREVENTING THE IMPORT OF WILD BIRDS FROM THE TROPICS AND KEEPING TUNA THAT IS NOT DOLPHINSAFE OUT OF OUR COUNTRY SIMILARLY AFFECTED WOULD BE SHRIMP TAKEN IN WAYS THAT ENDANGER SEA TURTLES AND FISH TAKEN WITH DRIFT NETS AND FROM COUNTRIES THAT ARE ENGAGED IN WHALING IN VIOLATION OF TREATY REQUIREMENTS MOREOVER OUR ABILITY TO ENTER INTO FUTURE ENVIRONMENTAL TREATIES WOULD BE CLOUDED BY THE NEED TO GAIN PERMISSION FROM MEXICO AND CANADA EFFORTS WERE MADE BY THE BUSH ADMINISTRATION TO ADDRESS SOME OF THESE PROBLEMS BUT THE FIXES WERE LIMITED AND ARE OFTEN CONTRADICTED BY OTHER LANGUAGE THAT WAS NOT CHANGED IT IS QUITE LIKELY THAT THE REST OF THESE PROBLEMS COULD BE FIXED IF THERE WERE A WILL TO DO SO HOWEVER THE CLINTON ADMINISTRATION SO FAR HAS REFUSED TO ENTERTAIN THE QUESTION BECAUSE IT HAS AGREED NOT TO RENEGOTIATE THE AGREEMENT IT HAS REFUSED TO LOOK SERIOUSLY AT CLARIFYING THE AGREEMENT'S INTENT AND AT PROTOCOLS THAT MIGHT BE NEGOTIATED TO RESOLVE THESE ENVIRONMENTAL PROBLEMS THE ADMINISTRATION HAS AGREED TO TACKLE THE ENFORCEMENT PROBLEM WHILE WE ARE NOT ENTIRELY SATISFIED WITH ITS APPROACH IT IS NONETHELESS A SERIOUS EFFORT TO PREVENT US INDUSTRY FROM FLEEING TO MEXICAN HAVENS WHERE ENFORCEMENT OF POLLUTION LAWS IS LAX WHERE THERE IS A PERSISTENT AND UNJUSTIFIABLE PATTERN OF LAX ENFORCEMENT THERE WOULD BE A REMEDY BUT MEXICO IS STONEWALLING THE IDEA IT IS STILL HOPEFUL THAT IT CAN LURE INDUSTRY WITH LAX ENFORCEMENT INEXPLICABLY CANADA IS SUPPORTING MEXICO HOW LONG WILL WE BE ABLE TO KEEP OUR STANDARDS HIGH IF OUR PARTNERS CAN LOWBALL US ON ENVIRONMENTAL ENFORCEMENT THE COUNTRIES OF THIS CONTINENT CAN ENJOY THE BENEFITS OF FREER TRADE WITHOUT COMPROMISING THE BONA FIDE ENVIRONMENTAL LAWS THAT EACH PARTY WANTS TO HAVE PROFITS FROM FURTHER INDUSTRIALIZATION CAN BE PLOWED BACK INTO CLEANUP THESE LEGITIMATE CONCERNS DO NOT NEED TO STAND IN THE WAY OF A SENSIBLE NAFTA IT IS TIME TO GET SERIOUS ABOUT TAKING CARE OF THESE NEEDS UNFORTUNATELY THE CLINTON ADMINISTRATION IS BEGINNING TO ACT IN A PROPRIETARY WAY ABOUT THE NAFTA IT HAS INHERITED THE ADMINISTRATION IS FINDING REASONS NOT TO TACKLE MOST OF THESE PROBLEMS IT IS TAKING AN INFLEXIBLE POSITION ON THE QUESTION OF DOING AN ENVIRONMENTAL IMPACT STATEMENT BUT SUCH A STATEMENT COULD GIVE IT BREATHING ROOM TO GET A FIRM GRIP ON THE BEST WAY TO RESOLVE THESE PROBLEMS IT HAS FECKLESSLY PUT ITSELF ON A SCHEDULE FOR WRAPPING UP NEGOTIATIONS THAT THROWS AWAY BARGAINING LEVERAGE IT IS ACTING AS IF ITS FUTURE IS TIED TO GETTING THIS AGREEMENT THROUGH WITH ONLY MINIMAL CHANGE THAT ATTITUDE MAY ONLY WORSEN NAFTA'S PROSPECTS IN THE HOUSE CONGRESSIONAL LEADERS HAVE BEEN WARNING THE CLINTON ADMINISTRATION THAT NAFTA CAN'T PASS UNLESS REALLY STRONG ENVIRONMENTAL SAFEGUARDS ARE INCLUDED THIS IS NOT AN IMPOSSIBLE TASK BUT THE PROBLEMS CANNOT BE SOLVED UNLESS THE ADMINISTRATION DEALS WITH THESE SERIOUS CONCERNS THERE IS STILL TIME TO RESCUE NAFTA AND GIVE MOST OF THE ENVIRONMENTAL COMMUNITY A STAKE IN IT BUT THE HOUR IS LATE PRESIDENT CLINTON NEEDS TO TAKE CHARGE AND TELL HIS NEGOTIATORS HE WANTS THE PRIORITIES AND APPROACH CHANGED MR MCCLOSKEY IS CHAIRMAN OF THE SIERRA CLUB SEE RELATED LETTER LETTERS TO THE EDITOR NAFTA FOR A BETTER ENVIRONMENT WSJ JULY 30 1993 9307080085 YY93 MM07 9307300201 930730 DIVIDEND NEWS PILGRIM'S PRIDE CORP PILGRIM'S PRIDE CORP PITTSBURG TEXAS BUOYED BY THREE STRAIGHT QUARTERS OF REBOUNDING EARNINGS REINSTATED ITS 15 CENTASHARE QUARTERLY PAYOUT THE DIVIDEND IS PAYABLE AUG 29 TO SHAREHOLDERS OF RECORD AUG 9 THE MARKETER OF CHICKEN PRODUCTS HAD OMITTED THE DIVIDEND THE PAST TWO QUARTERS BECAUSE OF POOR EARNINGS IN FISCAL 1992 AND PROBLEMS SINCE RESOLVED IN RESTRUCTURING ITS DEBT EARLIER THIS WEEK THE COMPANY REPORTED THAT EARNINGS FOR THE FIRST NINE MONTHS OF ITS FISCAL YEAR WHICH ENDS OCT 2 WERE 17 MILLION OR 62 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 171 MILLION OR 76 CENTS A SHARE 9307300200 930730 YOUR MONEY MATTERS WEEKEND REPORT THREE BULLISH WAYS TO MAKE STOCKS BEARABLE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NO PAIN NO GAIN THAT'S AN UNFORTUNATE FACT OF STOCK MARKET INVESTING TO EARN THE SUPERIOR RETURNS THAT STOCKS CAN DELIVER YOU RUN THE RISK OF SUFFERING SEVERE SHORTTERM LOSSES BUT THERE ARE SOME STRATEGIES THAT CAN MAKE STOCK INVESTING A LITTLE MORE BEARABLE WITH THE STOCK MARKET CLOSE TO A RECORD HIGH NOW MAY BE AN ESPECIALLY GOOD TIME TO CONSIDER THEM EVERYBODY IS CONCERNED ABOUT INVESTING IN THE STOCK MARKET WHEN BY MANY YARDSTICKS STOCKS ARE EXPENSIVE SAYS STEVEN NORWITZ A VICE PRESIDENT WITH T ROWE PRICE ASSOCIATES A BALTIMORE MUTUAL FUND COMPANY BUT SAYS MR NORWITZ THERE ARE THREE TOOLS THAT EQUITY INVESTORS CAN USE TO REDUCE RISK ONE IS TO EXTEND THEIR TIME HORIZON THE SECOND IS TO DIVERSIFY AND THE THIRD IS TO USE DOLLARCOST AVERAGING AT FIRST BLUSH PLUNKING SOME MONEY INTO THE STOCK MARKET IS JUST ABOUT THE RISKIEST THING YOU CAN DO OVER THE 20 YEARS THROUGH DECEMBER 1992 IF YOU HAD YOUR MONEY IN THE LARGECOMPANY STOCKS THAT MAKE UP THE STANDARD & POOR'S 500STOCK INDEX YOU WOULD HAVE SUFFERED A LOSS IN FIVE SEPARATE YEARS 1973 1974 1977 1981 AND 1990 YOUR WORST CALENDAR YEAR LOSS WOULD HAVE BEEN A 265 PLUNGE IN 1974 DOES IT HAVE TO BE THAT BAD NOT NECESSARILY FOR STARTERS OWNING STOCKS BECOMES A LOT MORE PALATABLE IF YOU PLAN TO STICK WITH YOUR INVESTMENTS FOR A NUMBER OF YEARS DURING THE PAST 20 YEARS THERE'S BEEN JUST ONE FIVECALENDARYEAR PERIOD BETWEEN YEAREND 1972 AND YEAREND 1977 WHEN YOU WOULD HAVE LOST MONEY OWNING THE S&P 500 STOCKS PEOPLE SHOULD HAVE AT LEAST A FIVEYEAR TIME HORIZON IF THEY'RE IN STOCKS SAYS MR NORWITZ IF YOU'RE IN THE MARKET FOR ONLY ONE TO THREE YEARS THERE'S A GOOD CHANCE THAT YOU'LL SUSTAIN A LOSS THAT YOU WON'T RECOVER FROM EVEN FOR THOSE WHO PLAN TO STICK WITH THEIR STOCK INVESTMENTS FOR A GOOD LONG TIME LOSING MONEY DURING A FIVEYEAR STRETCH CAN BE PRETTY ROUGH BUT THERE ARE OTHER WAYS TO LESSEN THE PAIN CONSIDER FOR INSTANCE WHAT WOULD HAVE HAPPENED DURING THE PAST TWO DECADES IF YOU HAD OWNED SMALLCOMPANY STOCKS AND FOREIGN STOCKS IN COMBINATION WITH THE LARGECOMPANY STOCKS THAT MAKE UP THE S&P 500 OVER THE PAST 20 YEARS IF YOU HAD SPLIT YOUR MONEY EQUALLY AMONG LARGECOMPANY SMALLCOMPANY AND FOREIGN STOCKS YOU WOULD HAVE MADE MONEY DURING EVERY FIVEYEAR STRETCH ACCORDING TO FIGURES CALCULATED FOR THE WALL STREET JOURNAL BY T ROWE PRICE THIS DIVERSIFIED STOCK PORTFOLIO OFFERED INVESTORS AN ADDED BONUS IT ALSO GENERATED BETTER RETURNS THAN THE S&P 500 ACCORDING TO T ROWE PRICE THE DIVERSIFIED STOCK PORTFOLIO WOULD HAVE RETURNED 136 A YEAR DURING THE PAST 20 YEARS COMPARED WITH 113 FOR THE S&P 500 SOME INVESTMENT ADVISERS RECKON THAT FOREIGN STOCKS AND SMALLCOMPANY STOCKS ARE PARTICULARLY ATTRACTIVE RIGHT NOW WE FEEL THERE'S BETTER VALUE IN SMALLCOMPANY STOCKS AND MANY FOREIGN MARKETS AS WELL AS BETTER GROWTH POTENTIAL SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER THAT'S A COMPELLING COMBINATION MR GREGORY FAVORS SMALLCAP FUNDS SUCH AS BRANDYWINE FUND FOUNDERS DISCOVERY FUND AND SCHOONER FUND AMONG FOREIGNSTOCK FUNDS HE LIKES ACORN INTERNATIONAL HARBOR INTERNATIONAL FUND AND WARBURG PINCUS INTERNATIONAL EQUITY FUND MR GREGORY SUGGESTS OWNING THESE FUNDS IN CONJUNCTION WITH A LARGECOMPANY STOCK FUND SUCH AS SELECTED AMERICAN SHARES BUT DIVERSIFYING AMONG LARGE STOCKS SMALL STOCKS AND FOREIGN STOCKS ISN'T A PANACEA DURING THE PAST 20 YEARS YOU WOULD STILL HAVE LOST MONEY IN ONE THREEYEAR PERIOD BETWEEN YEAREND 1972 AND YEAREND 1975 AS WELL AS IN THREE SEPARATE CALENDAR YEARS 1973 1974 AND 1990 YOUR WORST ONEYEAR LOSS WOULD HAVE BEEN A 229 DRUBBING IN 1974 ARE THERE ANY OTHER WAYS TO MAKE STOCK MARKET INVESTING MORE BEARABLE YOU COULD DIVERSIFY EVEN FURTHER BY MOVING 25 OF YOUR PORTFOLIO INTO BONDS SO THAT YOU HAD EQUAL STAKES IN LARGECOMPANY STOCKS SMALLCOMPANY STOCKS FOREIGN STOCKS AND BONDS AS BEFORE YOU WOULD STILL HAVE LOST MONEY BOTH IN ONE THREEYEAR STRETCH AND IN THREE SEPARATE CALENDAR YEARS BUT YOUR WORST ONEYEAR LOSS WOULD HAVE BEEN A MORE MODEST 157 AND BY ADDING A SMALL STAKE IN BONDS YOU DON'T CRIMP YOUR RETURNS THAT MUCH DURING THE 20 YEARS THROUGH THE END OF 1992 YOU WOULD HAVE EARNED 129 A YEAR BETTER THAN THE 113 ANNUAL GAIN FOR THE S&P 500 AND NOT FAR BELOW THE DIVERSIFIED ALLSTOCK PORTFOLIO'S 136 AFTER THE LONG BOND MARKET RALLY SOME INVESTMENT ADVISERS FEAR THAT BOND PRICES MAY GET PUMMELED AS INTEREST RATES HEAD BACK UP AS A RESULT THOSE LOOKING TO DIVERSIFY OUT OF STOCKS MAY WANT TO BYPASS BONDS FOR THE MOMENT AND INSTEAD MOVE A CHUNK OF THEIR PORTFOLIO INTO A MONEY MARKET FUND FOR ANTSY INVESTORS THERE'S STILL ANOTHER STRATEGY YOU CAN USE TO REDUCE YOUR RISK THE PERFORMANCE FIGURES USED SO FAR PRESUME THAT YOU THROW YOUR MONEY INTO THE MARKET IN ONE GREAT WAD BUT INVESTMENT ADVISERS OFTEN SUGGEST A MORE CAUTIOUS ROUTE KNOWN AS DOLLARCOST AVERAGING BY WHICH YOU MOVE YOUR MONEY INTO THE MARKET IN EQUAL MONTHLY INVESTMENTS IF YOU USE DOLLARCOST AVERAGING TO GRADUALLY BUY A PORTFOLIO COMPRISING EQUALDOLLAR INVESTMENTS IN LARGECOMPANY STOCKS SMALLCOMPANY STOCKS FOREIGN STOCKS AND BONDS YOUR CHANCES OF A BAD LOSS DROP EVEN FURTHER ACCORDING TO T ROWE PRICE IF YOU USED THIS STRATEGY YOU WOULDN'T HAVE SUFFERED A LOSS OVER ANY THREEYEAR PERIOD DURING THE PAST TWO DECADES WHILE YOU WOULD HAVE BEEN HIT WITH A LOSS IN FOUR CALENDAR YEARS 1973 1974 1987 AND 1990 THESE LOSSES WERE SMALL COMPARED WITH THOSE SUSTAINED BY THE OTHER PORTFOLIOS DISCUSSED ABOVE THE POOREST PERFORMANCE WOULD HAVE BEEN A 103 LOSS IN 1974 IT'S AT TIMES LIKE THESE THAT INVESTORS SHOULD BE PUTTING MONEY INTO STOCKS AND DOING IT ON A SYSTEMATIC BASIS SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER THERE ARE TWO THINGS THAT CAN HAPPEN STOCKS CAN GO UP OR STOCKS CAN GO DOWN IF YOU'RE SYSTEMATICALLY INVESTING YOU SHOULD BE HAPPY EITHER WAY IF STOCKS GO UP YOUR STOCKS ARE WORTH MORE IF STOCKS GO DOWN YOU'RE GETTING TO BUY AT LOWER PRICES 9307300199 930730 AMBIX PRODUCTS SEIZED BY US ATTORNEY'S OFFICE NEWARK NJ THE US ATTORNEY'S OFFICE SEIZED PRESCRIPTION AND OVERTHECOUNTER CREAMS GELS AND LIQUIDS MADE BY AMBIX LABORATORIES OF EAST RUTHERFORD NJ FOLLOWING A SUIT ON BEHALF OF THE FOOD AND DRUG ADMINISTRATION ALLEGING THAT AMBIX DRUGS DON'T CONFORM TO CURRENT GOOD MANUFACTURING PRACTICE AMBIX MAKES PRIVATELABEL PRODUCTS FOR DRUGSTORE CHAINS AND WHOLESALE DISTRIBUTORS ITS PRODUCTS INCLUDE ALOE VERA FIRSTAID AND HYDROCORTISONE CREAMS THE GOVERNMENT'S SUIT CITES INADEQUATE SANITARY CONDITIONS TESTING AND CLEANING OF EQUIPMENT DISCOVERED BY FDA INSPECTIONS IN MARCH AND JUNE IT ALSO SAID THAT ONE LOT OF HYDROCORTISONE CREAM MADE BY AMBIX TESTED POSITIVE LAST MARCH FOR STAPHYLOCOCCUS AUREUS BACTERIA AND THAT AMBIX FAILED TO CONDUCT AN INVESTIGATION INTO THE CAUSE THE COMPANY DECLINED TO COMMENT 9307300198 930730 WESTDEUTSCHE LANDESBANK FACES EEOC COMPLAINT NEW YORK A RACE DISCRIMINATION COMPLAINT AGAINST WESTDEUTSCHE LANDESBANK GIROZENTRALE OF GERMANY WAS FILED WITH THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN NEW YORK CITY IN THE COMPLAINT LAMOTH E FREDERICK A FORMER VICE PRESIDENT WHO IS BLACK STATES THAT HE WAS SUBJECTED TO INTENTIONAL DISCRIMINATION ON ACCOUNT OF HIS RACE ERIC J WALLACH MR FREDERICK'S ATTORNEY SAID MR FREDERICK WAS TRANSFERRED TO A NONEXISTENT POSITION IN THE FINANCE DEPARTMENT LAST SEPTEMBER MR FREDERICK WHO LEFT WESTLB IN MAY JOINED THE GERMAN BANK IN 1991 WHEN IT ACQUIRED SECURITY PACIFIC BANK'S TRADE FINANCE GROUP KATHLEEN COMFREY ATTORNEY FOR WESTLB SAID THE COMPANY HASN'T YET RECEIVED A COPY OF THE COMPLAINT BUT WESTLB INTENDS TO FIGHT THE SUIT VIGOROUSLY SHE SAID THERE'S ABSOLUTELY NO BASIS FOR THE DISCRIMINATION COMPLAINT 9307300197 930730 GINSBURG WINS APPROVAL OF SENATE PANEL FOR COURT WASHINGTON SUPREME COURT NOMINEE RUTH BADER GINSBURG WON UNANIMOUS APPROVAL FROM THE SENATE JUDICIARY COMMITTEE CLEARING THE WAY FOR A VOTE BY THE FULL SENATE AS SOON AS NEXT WEEK SENATORS FROM BOTH PARTIES PREDICTED THAT JUDGE GINSBURG WILL BE CONFIRMED EASILY ALLOWING HER TO BEGIN PREPARATIONS FOR THE HIGH COURT'S 19931994 TERM WHICH BEGINS OCT 4 THE JUDICIARY COMMITTEE'S 180 VOTE CAME AFTER BOTH REPUBLICANS AND DEMOCRATS PRAISED JUDGE GINSBURG FOR HER CAUTIOUS SCHOLARLY APPROACH AS A MEMBER OF THE FEDERAL APPEALS COURT HERE SINCE 1980 SOME REPUBLICANS EXPRESSED HESITATION ABOUT WHAT THEY PERCEIVE AS JUDGE GINSBURG'S LIBERAL VIEWS ON ISSUES SUCH AS ABORTION RIGHTS AND SEX DISCRIMINATION STILL REPUBLICAN MEMBERS OF THE COMMITTEE SAID THE NOMINEE'S SELFRESTRAINT ON THE LOWER COURT AND HER LEGAL SKILL QUALIFIED HER FOR THE HIGH COURT REFLECTING THE BIPARTISAN RELIEF OVER A CONTROVERSYFREE NOMINATION AFTER YEARS OF STORMY CONFIRMATION POLITICS JUDICIARY CHAIRMAN JOSEPH BIDEN OF DELAWARE CONCLUDED THE PANEL'S ROLLCALL VOTE BY EXCLAIMING THANK THE LORD JUDGE GINSBURG WOULD BE ONLY THE SECOND WOMAN JUSTICE AND THE FIRST APPOINTEE OF A DEMOCRATIC PRESIDENT IN 26 YEARS 9307300196 930730 TECHNOLOGY & HEALTH ADULTS SHOULD EXERCISE AT LEAST 30 MINUTES DAILY WASHINGTON ADULTS SHOULD ENGAGE IN AT LEAST 30 MINUTES OF MODERATE PHYSICAL ACTIVITY ALMOST EVERY DAY TO HELP PROTECT AGAINST HEART DISEASE AND OTHER AILMENTS A PANEL OF DOCTORS AND SCIENTISTS RECOMMENDED SUCH ACTIVITY CAN INCLUDE WALKING GARDENING AND STAIRCLIMBING INSTEAD OF STRUCTURED EXERCISE AND SPORTS ACTIVITIES SAID THE PANEL WHICH INCLUDED PEOPLE FROM THE FEDERAL CENTERS FOR DISEASE CONTROL AND PREVENTION AND THE AMERICAN COLLEGE OF SPORTS MEDICINE AN OVERWHELMING NUMBER OF ADULTS AREN'T EVEN GETTING THAT MINIMAL EXERCISE THE GROUP SAID IN A REPORT ONLY 22 OF ADULTS IN A SURVEY REPORTED ENGAGING IN DAILY LIGHT TO MODERATE PHYSICAL ACTIVITY 24 SAID THEY DIDN'T DO ANY LEISURE TIME PHYSICAL ACTIVITY DURING THE PREVIOUS MONTH PERSONS WHO CURRENTLY DO NOT ENGAGE IN REGULAR PHYSICAL ACTIVITY SHOULD BEGIN BY INCORPORATING A FEW MINUTES OF INCREASED ACTIVITY INTO THEIR DAY BUILDING UP GRADUALLY TO 30 MINUTES OF ADDITIONAL PHYSICAL ACTIVITY THE REPORT SAID 9307300195 930730 US CANADA MEXICO MEET ON NAFTA SIDE AGREEMENTS WASHINGTON TRADE MINISTERS FROM THE US CANADA AND MEXICO MET HERE TO TRY TO RESOLVE QUESTIONS THAT ARE HOLDING UP A FINAL AGREEMENT ON THE SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT THE US IS HOPING TO REACH AGREEMENT ON ENFORCEMENT OF ENVIRONMENTAL AND LABOR LAWS EARLY NEXT WEEK THE MINISTERS' GATHERING IS SCHEDULED TO END TODAY BUT US TRADE REPRESENTATIVE MICKEY KANTOR SAID LOWERRANKING TRADE NEGOTIATORS WILL CONTINUE WORK THROUGH THE WEEKEND MR KANTOR AND HIS COUNTERPARTS FROM MEXICO AND CANADA THEN MAY MEET AGAIN NEXT WEDNESDAY AND THURSDAY TO TRY TO COMPLETE THE AGREEMENTS THE TALKS STEM FROM A CAMPAIGN PLEDGE BY PRESIDENT CLINTON TO NEGOTIATE SIDE DEALS TO THE FREETRADE PACT THAT WOULD STRENGTHEN ENFORCEMENT OF ENVIRONMENTAL AND LABOR LAWS BUT THE TALKS HAVE BEEN AT AN IMPASSE OVER THE US DEMAND THAT IT BE ABLE TO IMPOSE TRADE SANCTIONS IF NAFTA PARTNERS DON'T ENFORCE THEIR LABOR AND ENVIRONMENTAL LAWS BESIDES ADDRESSING ENFORCEMENT ISSUES THE NEGOTIATORS ARE TRYING TO AGREE ON A DEVELOPMENT AUTHORITY THAT COULD OVERSEE ENVIRONMENTAL CLEANUP ALONG THE BORDER THE US ESTIMATES THAT CLEANUP COSTS COULD TOTAL 7 BILLION TO 10 BILLION IN THE NEXT DECADE 9307300194 930730 OTC FOCUS STOCKS RISE AMID BOND RALLY SPARKED BY NEWS OF LOWERTHANEXPECTED GDP BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SWELTERING BOND PRICES FOLLOWED A LOWERTHANEXPECTED REPORT ON SECONDQUARTER GROSS DOMESTIC PRODUCT SENDING NASDAQ STOCKS MODERATELY HIGHER THE COMMERCE DEPARTMENT SAID THE ECONOMY GREW IN THE SECOND QUARTER AT AN ANNUAL RATE OF JUST 16 WALL STREET HAD EXPECTED THE GDP TO RISE BY ABOUT 23 LONGTERM GOVERNMENT SECURITIES ROSE MORE THAN A FULL POINT ON THE NEWS DEPRESSING THE LONG BOND'S YIELD TO 657 NEAR ITS 16YEAR LOW ANOTHER REPORT SHOWED THAT INITIAL STATE JOBLESS CLAIMS ROSE BY 43000 TO A TOTAL OF 394000 IN THE JULY 24 WEEK ECONOMISTS HAD EXPECTED CLAIMS TO TOTAL ABOUT 415000 THE NASDAQ COMPOSITE INDEX CLIMBED 165 POINTS OR 023 TO CLOSE AT 70724 STOCKS PLAYED TAG AFTER THE BOND MARKET ALL DAY LONG SAID THOM R BROWN A MANAGING DIRECTOR AT RUTHERFORD BROWN & CATHERWOOD THIS IS A MARKET OF OVERREACTION AN ULTRASENSITIVE MARKET IT LOOKS LIKE IT HAS SHINGLES NEW YORK STOCK EXCHANGE SHARES ALSO ADVANCED ON THE BOND RALLY IN INTRADAY TRADING THE DOW JONES INDUSTRIAL AVERAGE SURPASSED ITS RECORD SET MONDAY AND CLIMBED ABOUT 26 POINTS BUT RETREATED TO END 1397 POINTS OR 039 HIGHER AT 356742 THE BIG BOARD'S COMPOSITE INDEX ADDED 148 POINTS OR 060 TO FINISH AT 24934 HUGH A JOHNSON CHIEF INVESTMENT STRATEGIST AT FIRST ALBANY CORP SAID THE GDP REPORT WOULD INDICATE THAT INVESTMENT IN TECHNOLOGY STOCKS HAS SLOWED FROM A BREAKNECK PACE TO A CANTER HE SAID THE GROWTH OF INVESTMENT IN TECHNOLOGY STOCKS AFTER INFLATION HAS AVERAGED 17 IN THE CURRENT RECOVERY SINCE THE SECOND QUARTER OF 1991 BUT IN THE RECENT SECOND QUARTER ALONE HE SAID THE PACE FELL TO 12 MR JOHNSON SAID THE SMART MONEY IS PAYING ATTENTION TO THESE DATA WHICH MAY BE GIVING THOSE THAT INVEST IN TECHS LESS REASON TO BE EUPHORIC AND ENTHUSIASTIC RUTHERFORD'S MR BROWN SAID THE POSSIBILITY OF SHARP GAINS IN THE OVERTHECOUNTER MARKET CONTINUES TO BE DULLED BY THE FLOOD OF ANEMIC ECONOMIC STATISTICS AND CONCERN OVER THE CLINTON ADMINISTRATION'S BUDGET PLAN CONGRESSIONAL LEADERS TODAY STRUGGLED TO COMPROMISE ON THE GASOLINE TAX IN THE DEFICITREDUCTION PLAN ADVANCING NASDAQ ISSUES BEAT OUT DECLINERS 1444 ISSUES TO 1252 ON TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME OF 233101300 SHARES WEDNESDAY VOLUME TOTALED 225562400 SHARES TECHNOLOGY ISSUES GOT A BIG BOOST FROM GOOD EARNINGS REPORTS BY MICROSOFT AND SUN MICROSYSTEMS LATE WEDNESDAY MICROSOFT IN REDMOND WASH REPORTED FISCAL FOURTHQUARTER NET INCOME OF 87 CENTS A SHARE ABOVE ANALYSTS' ESTIMATES OF 86 CENTS AND LAST YEAR'S 71 CENTS MARKET WATCHERS WEDNESDAY SAID THE NASDAQ MARKET'S PERFORMANCE YESTERDAY WOULD BE TIED CLOSELY TO HOW MICROSOFT FARED THE COMPUTER SOFTWARE FIRM'S SHARES CLIMBED 3/4 TO 79 SUN MICROSYSTEMS IN MOUNTAIN VIEW CALIF EDGED UP 1 TO 29 3/4 AFTER ITS FISCAL FOURTHQUARTER EARNINGS CAME IN LATE WEDNESDAY AT 72 CENTS A SHARE UP FROM 37 CENTS IN THE SAME PERIOD A YEAR EARLIER ANALYSTS HAD LOOKED FOR THE COMPANY TO EARN 63 CENTS SALOMON BROTHERS ANALYST JEFFREY CANIN RAISED HIS RATING ON THE COMPANY'S SHARES TO BUY FROM HOLD AND LIFTED HIS FISCAL 1994 EARNINGS ESTIMATE DELL COMPUTER IN AUSTIN TEXAS GAINED 1 7/8 TO 19 7/8 MARKET PLAYERS SAID THE COMPANY'S SHARES GOT A BOOST ON SHORTSELLING AND BARGAINHUNTING PLATINUM SOFTWARE'S STOCK BENEFITED FROM A NEEDHAM & CO UPGRADE TO BUY FROM HOLD THE BROKERAGE FIRM SAID IT IS NOW MORE COMFORTABLE WITH THE IRVINE CALIF SOFTWARE CONCERN'S PRODUCT MIX THE COMPANY'S SHARES SURGED 6 1/2 TO 34 1/2 MOST OF THE REST OF THE SECTOR FOLLOWED SUIT ORACLE CORP WAS UP 1 TO 51 7/8 APPLIED MATERIALS INCHED UP 2 TO 63 3/4 AND BORLAND INTERNATIONAL SHOT 1 1/8 HIGHER TO 19 7/8 THE NASDAQ BANK INDEX HIT A RECORD FOR THE SECOND STRAIGHT DAY CLIMBING 124 POINTS OR 019 TO CLOSE AT 64481 AMONG ITS COMPONENTS INDEPENDENCE BANCORP GAINED 1 TO 27 3/4 US TRUST ADDED 1 1/4 TO 54 1/2 AND MERIDIAN BANCORP MOVED UP 7/8 TO 31 1/2 9307300193 930730 GERMAN HEALTHCARE SYSTEM HITS SNAGS UNIVERSAL' PROGRAM FACES PADDED BILLING OTHER WOES BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN GESUNDHEIT THE VAUNTED GERMAN HEALTHCARE SYSTEM MAY BE CATCHING A COLD THE COUNTRY'S SYSTEM OF UNIVERSAL HEALTH INSURANCE FINANCED BY A COMBINATION OF PAYROLL DEDUCTIONS AND EMPLOYER CONTRIBUTIONS IS MUCH ADMIRED BY THE CLINTON ADMINISTRATION AS IT LOOKS FOR MODELS TO ASSIST AMERICA IN ERASING OLD HEALTHCARE INEQUITIES NOW HOWEVER GERMAN MEDICINE IS WITNESSING CHANGES NEVER CONTEMPLATED IN THE CENTURY SINCE OTTO VON BISMARCK CREATED THE FORERUNNER OF THIS EGALITARIAN MEDICAL SYSTEM PADDED BILLING RISING MALPRACTICE CLAIMS AND PATIENT DUMPING PROBLEMS FAMILIAR TO AMERICAN MEDICINE ARE BEGINNING TO POP UP HERE AS WELL THE COSTS OF REUNIFICATION OF EAST AND WEST GERMANY HAVE FURTHER STRAINED THE SYSTEM AND DOCTORS WEANED OFF THE EAST'S OLD GOVERNMENT CONTRACTFORLIFE SYSTEM ARE FIGHTING BACK THE AMERICAN WAY THEY ARE SUING DESPITE SUCH GROWING PAINS GERMAN DOCTORS REMAIN FIERCELY PROUD OF THEIR MEDICAL COVERAGE AND ITS PRINCIPLE OF SOLIDARITY WHICH HOLDS THAT A MANUAL LABORER DESERVES THE SAME QUALITY OF CARE AS A CORPORATE TITAN AT THE PUBLIC'S EXPENSE IF A PERSON NEEDS A HEART TRANSPLANT OR A BONE MARROW TRANSPLANT IN THE US YOU READ IN THE NEWSPAPERS ABOUT PEOPLE HAVING TO RAISE THE MONEY SAYS WALTER SCHAFFARTZIK AN INTENSIVECARE UNIT DOCTOR IN BERLIN HERE IT'S COVERED YOU WOULDN'T UNDERSTAND IT MICHAEL ARNOLD PROFESSOR AT TUBINGEN UNIVERSITY CHIDES AN AMERICAN VISITOR THE RICH PAY FOR THE POOR THE HEALTHY PAY FOR THE SICK THE YOUNG PAY FOR THE OLD MOREOVER GERMANS ENJOY HEALTH PERKS SUCH AS MASSAGE AND SPA TREATMENTS BUT SUCH AMENITIES COST GERMANY'S HEALTHCARE BILL COMPRISED 81 OF ITS GROSS NATIONAL PRODUCT IN 1992 THAT'S LOWER THAN THE US BURDEN OF 14 BUT STILL TOO MUCH GERMAN EXPERTS SAY THIS YEAR CONTRIBUTIONS TO THE SICKNESS FUNDS WHICH ARE BASICALLY COVERAGE GROUPS ARE RISING TO ABOUT 134 PER EMPLOYEE UP FROM ABOUT 122 IN 1992 SAID DR ARNOLD IN AN INTERVIEW AS A RESULT GERMAN DOCTORS FACE TOUGH SCRUTINY AND FINES FOR OVERPRESCRIBING DRUGS OR DEVIATING FROM AVERAGE TREATMENT PRACTICES THE GREAT PRIVILEGE OF OUR SYSTEM IS THAT EVERY MAN AND WOMAN CAN HAVE INSURANCE SAYS HANS WEITZEL AN OBSTETRICIAN AND GYNECOLOGIST IN BERLIN BUT IT HAS COME TO THE POINT THAT IT DOESN'T WORK IT IS TOO EXPENSIVE MOREOVER GERMANY NOW MUST ABSORB FORMER EAST GERMAN SOCIAL WELFARE PROGRAMS WHICH ONCE ATE UP 70 OF THE EAST'S GNP NO ECONOMY COULD STAND IT DR ARNOLD SAYS ADDING THAT GERMANY'S TOTAL SOCIAL TAB WILL RISE TO 33 OF GNP FROM 29 WHEN REUNIFICATION IS COMPLETE MEANWHILE IN THE WARDS AND CLINICS OF THIS RECENTLY SPLICED CITY DOCTORS AND PATIENTS BRACE FOR CUTBACKS AND CHANGES IN ITS MEDICAL CULTURE IN THE FORMER EAST BERLIN THE CHARITE HOSPITAL OF HUMBOLDT UNIVERSITY IS WEANING PATIENTS AWAY FROM ITS TEEMING WARDS AND CLINICS ONCE THE SITE OF EAST GERMANY'S ONLY MAGNETIC RESONANCE IMAGING MRI MACHINE THE CHARITE WAS A MEDICAL MAGNET ITS CLINICS WHICH STAGGERED UNDER 300000 OUTPATIENT VISITS IN 1989 ARE BEING TRIMMED BACK TO 70000 PATIENTS A YEAR ITS 2000BED HOSPITAL IS BEING CUT TO 1350 THERE IS NO CHOICE SAYS MEDICAL DIRECTOR INGRID REISINGER THIS IS TOO MUCH PATIENT VOLUME FOR A TEACHING HOSPITAL BUT PATIENTS ARE RELUCTANT TO LEAVE THE SIMPLE AND CENTRALIZED EAST BERLIN CARE EAST BERLINER NORBERT HAUFFE A 35YEAROLD BARTENDER RECALLS THE CHARITE WAS LIKE A FACTORY BUT EACH VISIT WAS HANDLED WITH A SIMPLE STAMP IN HIS HEALTH RECORD BOOK SINCE REUNIFICATION HE SEES A PRIVATE DOCTOR IN THE WEST HE LIKES THE SYSTEM'S GEMUTLICHKEIT OR FRIENDLINESS BUT NOT ITS BUREAUCRACY IT IS VERY COMPLICATED WE DO IT WITH MANY PAPERS MANY TICKETS HE SAYS WITH A RUEFUL GRIN FOR SUCH REASONS DR REISINGER SAYS PATIENTS STILL COME TO THE CHARITE THEY DON'T TRUST THE NEW SYSTEM NOR DO EAST GERMAN DOCTORS EVEN THOUGH SALARY LEVELS ARE BETTER UNDER THE NEW SYSTEM DR REISINGER SAYS DOCTORS WILL SUE TO KEEP THEIR LIFE CONTRACTS TRADITIONALLY GERMANS HAVE EXPRESSED A HIGH DEGREE OF SATISFACTION WITH THEIR CARE BUT THESE DAYS MORE PATIENTS TAKE THEIR GRIPES TO COURT DR WEITZEL CHIEF OF OBSTETRICS AND GYNECOLOGY AT THE FREE UNIVERSITY OF BERLIN'S STEGLITZ CLINIC FINDS HIS ANNUAL MALPRACTICE INSURANCE PREMIUMS HAVE QUINTUPLED IN RECENT YEARS TO 25000 MARKS 15000 NEONATOLOGIST HANS VERSMOLD WHO TREATS FRAGILE PREMATURE BABIES AT THE STEGLITZ CLINIC CONFIRMS THE RUSH TO LITIGATE IF A BABY LEAVES YOUR OFFICE WITH A HANDICAP A LAWYER IS ALREADY WRITING YOU FOR COPIES OF THE BABY'S CHART HE SAYS THIS IS VERY NEW RATIONED CARE IS A MAJOR FISCAL TOOL OF COURSE AND ITS EDGE WAS SHARPENED BY REFORMS ENACTED JAN 1 DOCTORS HERE ARE FINED FOR OVERPRESCRIBING DRUGS OR OTHER TREATMENTS DR ARNOLD DEFENDS THE PRACTICE OF RATIONING OUR RATIONING SYSTEM SAYS A DOCTOR'S TREATMENT PRACTICES MUST BE 50 ABOVE AVERAGE BEFORE HE OR SHE IS ASKED TO EXPLAIN ONE SECRET OF GERMAN HEALTHCARE RATIONING IS SIMPLY AN ACCEPTANCE OF DEATH OBSERVERS SAY EUROPEANS HAVE ALWAYS VIEWED DEATH AS PART OF NATURE SAYS GERMANBORN ECONOMIST UWE REINHARDT OF PRINCETON UNIVERSITY AMERICANS SEE DEATH AS AN OPTION BUT MANY HEALTHIER GERMAN PATIENTS DON'T LIKE MAKING DO WITH LESS CARE A YOUNG BERLIN WOMAN TROUBLED BY STRESS AND MUSCLE PAINS USED TO GET MASSAGES BY PRESCRIPTION BUT RECENTLY HER OLD DOCTOR WAS FINED FOR OVERPRESCRIBING MASSAGE AND CUT HER OFF THE PATIENT SOUGHT CARE ELSEWHERE STRIPPEDDOWN REIMBURSEMENT SCHEMES WHICH PAY DOCTORS AS LITTLE AS EIGHT MARKS ABOUT 480 FOR A SIMPLE OFFICE VISIT ARE DRIVING SOME GERMAN DOCTORS TO INFLATE THEIR OFFICE VOLUME OR EVEN TO PAD THEIR BOOKS GERMAN DOCTORS WORK LIKE HAMSTERS IN A TREADMILL SAYS DR ARNOLD ONE BAVARIAN DOCTOR EVEN CLAIMED TO HAVE WORKED 27 HOURS A DAY ON CHRISTMAS EVE DR ARNOLD SAYS HE WAS CHEATING WITH DOCTORS UNDER PRESSURE TO PARE DOWN THEIR CARE DR ARNOLD SAYS THERE'S A DANGER GERMANY WILL EXPERIENCE MORE PATIENT DUMPING ONE PEDIATRICIAN RECENTLY SHIPPED A SERIOUSLY INFECTED YOUNGSTER TO THE HOSPITAL RATHER THAN TREAT THE CHILD AT HOME AND FACE SCRUTINY HE FEARED HE MIGHT BE ASKED WHY DID YOU SPEND SO MUCH' DR ARNOLD SAYS LAST YEAR HE WOULDN'T HAVE DONE THAT REGINE WOSNITZA CONTRIBUTED TO THIS ARTICLE 9307300192 930730 BRITISH BANKS' SHARES RECEIVE MIXED REVIEWS SOME ANALYSTS THINK MOST OF GOOD NEWS ALREADY IS REFLECTED IN PRICES BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON HAS THE STEAM GONE OUT OF BRITISH BANK SHARES ON THE FACE OF THINGS IT SHOULDN'T HAVE FOR THE FIRST TIME IN YEARS THERE'S MORE GOOD NEWS FOR BRITISH BANKS THAN BAD AFTER THREE YEARS OF GLOOM BRITAIN'S ECONOMY IS RECOVERING PROVISIONS FOR BAD LOANS ARE STABLE OR FALLING FEE INCOME AND EARNINGS ON CURRENCY AND SECURITIES TRADING ARE RISING COSTS ARE BEING CONTAINED AND REDUCED AND YET AS LLOYDS BANK PLC KICKS OFF THE SECTOR'S SEMIANNUAL REPORTING ROUND TODAY AMID EXPECTATIONS OF YET ANOTHER STRONG EARNINGS PERFORMANCE MOST OF THE GOOD NEWS SEEMS ALREADY TO BE FULLY REFLECTED IN SHARE PRICES AS A RESULT MANY ANALYSTS ARGUE THEY ARE UNLIKELY TO STRENGTHEN MUCH FURTHER AFTER RISING 60 AND OUTPERFORMING THE UK STOCK MARKET BY NEARLY ONETHIRD IN THE PAST 12 MONTHS WE THINK THE BANK SECTOR HAS REACHED ITS CEILING SAID PETER TOEMAN OF HOARE GOVETT CONCURS HUGH PYE OF ROBERT FLEMING SECURITIES MUCH OF THE GOOD NEWS HAS BEEN DISCOUNTED ALREADY THAT'S DEFINITELY THE VIEW OF MICHAEL LEVER OF SMITH NEW COURT SECURITIES WHO SPARKED A SHORTLIVED FALL IN BANK SHARES THIS MONTH WHEN HE PUBLISHED A REPORT SUGGESTING THAT TOUGHENING COMPETITION WOULD RESTRAIN FUTURE EARNINGS GROWTH THE RATINGS ON THE SECTOR HAVE BEEN PUSHED UP TO SUCH A LEVEL THAT EVEN OVER SEVERAL YEARS THERE'S NOW LITTLE SCOPE FOR UPSIDE POTENTIAL THOUGH THERE MAY BE SOME GAINERS HE SAID OVERALL WE DON'T SEE THE SECTOR TAKING ANOTHER LEG UPWARDS INSTITUTIONAL INVESTORS IN PARTICULAR ARE LIKELY TO MOVE OUT OF BANK STOCKS AS SOON AS THEY SEE MORE LUCRATIVE OPPORTUNITIES ELSEWHERE HE SAID NOT EVERYONE SHARES HIS GLOOM HOWEVER BANK SHARES RECOVERED THIS WEEK AND MR PYE FOR ONE STILL THINKS THAT BANK STOCKS CAN OUTPERFORM THE BRITISH MARKET BY AROUND 15 OVER THE NEXT 12 MONTHS LOWER INTEREST RATES AROUND THE CORNER AND A PROBABLE UPTURN IN BRITAIN'S INFLATION RATE AT THE END OF THIS YEAR WILL BOTH HELP TO BOOST THEM HE SAID WHAT'S MORE SAID CHRIS WILLIAMS OF FOXPITT KELTON THERE'S ALWAYS A POSSIBILITY THAT AFTER THE RESULTS' ANNOUNCEMENTS BANKS WILL GO THROUGH A BOUT OF WEAKNESS SUCH AN EVENT HE SUGGESTED WOULD BE A BUYING OPPORTUNITY THE QUESTION IS WHAT STOCKS TO BUY STANDARD CHARTERED PLC THANKS TO ITS INVOLVEMENT IN BUOYANT ECONOMIES IN THE FAR EAST IS RECOMMENDED BY MANY ANALYSTS IT WILL ANNOUNCE MIDTERM FIGURES ON AUG 12 AND ANALYSTS EXPECT A STRONG INCREASE IN PRETAX EARNINGS TO AROUND 180 MILLION 2691 MILLION FROM 64 MILLION A YEAR AGO SOME ALSO EXPECT AN INCREASED INTERIM DIVIDEND OF 75 PENCE 112 CENTS OR MORE PER SHARE AGAINST SEVEN PENCE A YEAR AGO BUT THERE THE CONSENSUS SEEMS TO END BARCLAYS FOR EXAMPLE THOUGH STILL REGARDED AS A BUY BY SOME ANALYSTS AS A RECOVERY STOCK IS RATED A SELL BY OTHERS AFTER RECENT STRONG GAINS ABBEY NATIONAL TOO DESPITE A STRONG PERFORMANCE IN SHARE PRICE TERMS AND EXPECTATIONS OF INCREASED FIRSTHALF PROFIT AND A HIGHER INTERIM DIVIDEND IS RATED A SELL BY MANY ANALYSTS BECAUSE OF RISING COMPETITIVE PRESSURES IN THE MORTGAGE SECTOR WHERE IT IS ONE OF THE LEADERS THE COMPANY HAS A LONGTERM STRUCTURAL PROBLEM IN TERMS OF THE MORTGAGE MARKET SAID HOARE GOVETT'S MR TOEMAN THOUGH THAT MARKET HAS BEEN EXCESSIVELY PROFITABLE IN THE PAST HE SAID WE'RE NOT SURE THAT SUCH PROFIT LEVELS CAN BE MAINTAINED LLOYDS WILL SET THE TONE FOR THE SECTOR AS A WHOLE IT'S EXPECTED TO REPORT FIRSTHALF PRETAX EARNINGS OF AROUND 485 MILLION UP FROM 369 MILLION A YEAR AGO ANALYSTS WIDELY EXPECT AN INCREASE IN ITS INTERIM DIVIDEND TO 65 PENCE A SHARE FROM 59 PENCE LLOYDS IS RATED A BUY BY JOHN AITKEN OF UBS LTD WHO CALLS IT A WELLCAPITALIZED BANK WITH GOOD MANAGEMENT BUT IT GETS WEAKER PLAUDITS FROM OTHER ANALYSTS LARGELY BECAUSE IT'S ALREADY ONE OF BRITAIN'S MOST EXPENSIVE BANK STOCKS WE RECOGNIZE THEY'LL PAY A BUMPER DIVIDEND BUT THE MARKET MAY LOOK A BIT BEYOND THAT SAID SMITH NEW COURT'S MR LEVER WHO SAID SHOULD INVESTORS TAKE THEIR PROFITS AFTER RECENT STRONG RISES DESPITE LLOYDS' EXCELLENT MANAGEMENT RECORD HE SAID IT HAS FINETUNED ITS BUSINESS TO A POINT WHERE IT HAS LITTLE OBVIOUS ROOM FOR FURTHER EARNINGS GROWTH THOUGH IT STILL RETAINS A CAPACITY TO SURPRISE HE CONCEDES WE DON'T KNOW WHERE THE NEXT WHITE RABBIT IS COMING FROM NATIONAL WESTMINSTER BANK PLC GETS SIMILARLY MIXED REVIEWS LIKE LLOYDS NATWEST IS EXPECTED TO SHOW STRONGER FIRSTHALF PRETAX EARNINGS AT AROUND 285 MILLION AGAINST 211 MILLION A YEAR AGO WHEN IT UNVEILS ITS INTERIM RESULTS ON TUESDAY MR AITKEN EXPECTS NATWEST TO RAISE ITS INTERIM DIVIDEND TO 65 PENCE FROM 61 PENCE AND HE SAID HE'S A BUYER NATWEST HAS GREATLY IMPROVED ITS MANAGEMENT AND THERE HAS BEEN A GENERAL IMPROVEMENT IN EARNINGS HE SAID NORRIE MORRISON OF KLEINWORT BENSON SECURITIES BY CONTRAST PLAYS DOWN EXPECTATIONS OF A DIVIDEND INCREASE ON THE GROUND THAT NATWEST NEEDS TO STRENGTHEN ITS CAPITAL BASE BARCLAYS MEANWHILE IS KEEPING THE MARKET GUESSING WITH FORECASTS FOR ITS FIRST HALF PRETAX EARNINGS DUE OUT ON THURSDAY RANGING FROM 80 MILLION TO 250 MILLION AGAINST 51 MILLION A YEAR EARLIER 9307300191 930730 DIVIDEND NEWS COLLINS INDUSTRIES INC COLLINS INDUSTRIES INC HUTCHINSON KAN SAID IT WAS CUTTING ITS DIVIDEND IN HALF TO 125 CENTS FROM 25 CENTS A SHARE BECAUSE OF THE POSSIBLE IMPACT OF A CLASS ACTION SHAREHOLDER LAWSUIT THE AMBULANCE MAKER WAS SUED IN MAY AFTER THE COMPANY DISCLOSED THAT AN INTERNAL INVESTIGATION FOUND RESULTS HAD BEEN MISSTATED BOTH THE PRESIDENT AND CHIEF FINANCIAL OFFICER RESIGNED AFTER THE DISCOVERY THE CASH DIVIDEND WILL BE PAYABLE AUG 20 TO SHAREHOLDERS OF RECORD AUG 10 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 9307300190 930730 WHO'S NEWS SANTA MONICA BANK SANTA MONICA BANK SANTA MONICA CALIF JOE L WALLING 76 YEARS OLD WILL RETIRE AS CHIEF EXECUTIVE SEPT 30 HE WILL REMAIN CHAIRMAN OF THE BOARD PRESIDENT AUBREY L AUSTIN SAID A SUCCESSOR FOR MR WALLING HASN'T BEEN NAMED 9307300189 930730 POLITICS & POLICY PEROT SET TO STEP UP ATTACK ON CLINTON ECONOMIC PLAN WASHINGTON ROSS PEROT IS ABOUT TO STEP UP HIS ATTACKS ON PRESIDENT CLINTON'S ECONOMIC PROGRAM JUST AS IT APPROACHES ITS CRUCIAL VOTE MR PEROT WHO HINTED IN A WALL STREET JOURNAL INTERVIEW EARLIER THIS WEEK THAT HE WOULD BECOME MORE VOCAL IN HIS OBJECTIONS ONCE HOUSE AND SENATE NEGOTIATORS FINISH THE PLAN HAS SCHEDULED FIVE TELEVISION APPEARANCES FOR THIS WEEKEND ONE OF THOSE IS TO BE AN APPEARANCE AT A TELETHON TO RAISE MONEY FOR VICTIMS OF THE MIDWEST FLOOD BUT THE OTHERS ARE NEWS INTERVIEW PROGRAMS SURE TO FOCUS ON MR PEROT'S VIEWS OF THE DEFICITCUTTING PLAN NOW BEING WRAPPED UP BY LAWMAKERS THE TV BLITZ IS A WORRISOME PROBLEM FOR THE CLINTON TEAM WHICH IS PREPARING TO RESPOND TO AN EXPECTED ONSLAUGHT OF PEROT CRITICISMS IN THE JOURNAL INTERVIEW MR PEROT SAID HE AND HIS SUPPORTERS CAN'T SUPPORT THE PLAN THAT IS TAKING SHAPE BECAUSE IT FAILS TO BALANCE THE BUDGET HE SAID CONGRESS SHOULD BACK OFF FROM THE PLAN AND CONVENE A BIPARTISAN BUDGET SUMMIT TO REWRITE IT BUT THAT IDEA HAS LITTLE SUPPORT AMONG EITHER DEMOCRATS OR REPUBLICANS 9307300188 930730 CHINESE OFFICIAL TRIES TO REASSURE WESTERN INVESTORS BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINESE VICE PREMIER ZHU RONGJI IS SEEKING TO DISPEL FOREIGN INVESTORS' CONCERN THAT BEIJING IS STEERING CHINA TOWARD A SHARP PAINFUL ECONOMIC DOWNTURN MR ZHU TOLD A GROUP OF SENIOR EXECUTIVES FROM GOLDMAN SACHS & CO AT A RECENT MEETING IN BEIJING THAT CHINA ISN'T ADOPTING AUSTERITY MEASURES THAT WOULD STIFLE ECONOMIC GROWTH RATHER CHINA IS TRYING TO REDIRECT FINANCIAL RESOURCES AWAY FROM SPECULATIVE SECTORS TO AREAS THAT ARE MORE IMPORTANT FOR THE OVERALL ECONOMY HE SAID THE VICE PREMIER'S EXPLANATION OF THE CURRENT ECONOMIC TURMOIL WERE HIS FIRST OFFERED TO THE WEST SINCE THE COUNTRY LAUNCHED IN LATE JUNE A 16POINT PROGRAM AIMED AT TIGHTENING BANK CREDITS AND SQUEEZING THE PROPERTY SECTOR WORRIES THAT THESE MEASURES WOULD BE TOO DRACONIAN HAVE GIVEN PAUSE TO SOME POTENTIAL FOREIGN INVESTORS MR ZHU ALSO TOLD THE GOLDMAN SACHS EXECUTIVES TO FEEL FREE TO REPEAT HIS WORDS AT INTERNAL MEETINGS CONVENED IN THE PAST TWO MONTHS MR ZHU REPEATEDLY ACKNOWLEDGED SERIOUS PROBLEMS WITH ECONOMIC OVERHEATING ACCORDING TO CHINESE OFFICIALS BUT ON SATURDAY MR ZHU TOLD THE VISITORS THAT THE ECONOMY AS A WHOLE ISN'T OVERHEATING ONLY CERTAIN SECTORS ARE THUS UNDER HIS PLAN CREDITTIGHTENING MEASURES ARE HITTING ONLY CERTAIN SECTORS OF THE ECONOMY SUCH AS THE PROPERTY MARKET FOR VILLAS AND LUXURIOUS APARTMENTS HE TOLD THE GROUP LOANS ILLEGALLY EXTENDED TO THESE PROJECTS WILL BE CALLED IN AND THE RESOURCES REDIRECTED TO SUPPORT INFRASTRUCTURE ENERGY AND AGRICULTURAL PROJECTS 9307300187 930730 BED BATH & BEYOND'S JULY SALES SPRINGFIELD NJ BED BATH & BEYOND INC SAID JULY SALES ROSE 43 TO 235 MILLION FROM THE YEAREARLIER 165 MILLION WHILE COMPARABLE STORE SALES ROSE 11 THE COMPANY OPERATES A NATIONWIDE CHAIN OF DOMESTICS AND HOME FURNISHINGS SUPERSTORES 9307300186 930730 PEPPERAND SALT RIGHT AT THE POVERTY LEVEL IF WE ALL DO THE WAVE 9307300185 930730 TEXAS INSTRUMENTS REDEMPTION DALLAS TEXAS INSTRUMENTS INC SAID IT WOULD REDEEM 37 MILLION OF ITS 74 MILLION IN 226 DEPOSITARY SHARES OUTSTANDING ON SEPT 10 EACH DEPOSITARY SHARE WILL BE EXCHANGED FOR 0547304 OF A SHARE OF COMMON STOCK PLUS 251111 CENTS RECORD DATE FOR THE CALL WILL BE AUG 9 DEPOSITARY SHARES TO BE REDEEMED WILL BE SELECTED BY LOT 9307300184 930730 ALLIEDSIGNAL PROFIT ROSE 21 TO HIGH IN SECOND QUARTER BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ALLIEDSIGNAL INC BOLSTERED BY PRODUCTIVITY GAINS AND SIGNIFICANT IMPROVEMENTS IN SEVERAL OF ITS MARKETS SAID SECONDQUARTER PROFIT ROSE 21 TO A RECORD 170 MILLION SENDING ITS STOCK TO A RECORD HIGH BUT SOME OF THE COMPANY'S BUSINESSES CONTINUED TO POST WEAK RESULTS THEY INCLUDED ITS AEROSPACE SEGMENT WHICH SUFFERS FROM A DOWNTURN IN THE COMMERCIAL AIRLINE INDUSTRY AND THE AUTOMOTIVE BUSINESS IN EUROPE BECAUSE OF A RECESSION THERE ALLIEDSIGNAL EARNED 121 A SHARE IN THE SECOND QUARTER UP FROM 140 MILLION OR 99 CENTS A SHARE A YEAR EARLIER SALES WERE 306 BILLION ABOUT THE SAME AS THE 308 BILLION LAST YEAR IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL'S STOCK ROSE 250 TO CLOSE AT 71375 THE SHARP PROFIT INCREASE IN THE FACE OF DIFFICULT ECONOMIC CONDITIONS IN SOME MAJOR MARKETS IMPRESSED BUT DIDN'T SURPRISE WALL STREET ANALYSTS WHO FOUND THE RESULTS IN LINE WITH THEIR ESTIMATES THE STOCK SURGE HAD MORE TO DO WITH A VERY IMPRESSIVE PRESENTATION ON THE COMPANY'S OUTLOOK BY CHAIRMAN LAWRENCE A BOSSIDY WHO SPOKE TO ANALYSTS SOON AFTER THE COMPANY ANNOUNCED ITS RESULTS SAID SIDNEY HELLER AN ANALYST WITH SHEARSON LEHMAN BROTHERS INC THERE WAS NO REAL NEWS BUT WHEN YOU LISTEN TO HIM TALK ABOUT STRATEGY HOW HE IS GROWING THE COMPANY AND SEE WHAT HE HAS DONE IT HAS A NICE POSITIVE EFFECT ON THE STOCK MR HELLER SAID MR BOSSIDY SAID IN AN INTERVIEW THAT THE LATEST PERIOD WAS THE BEST OPERATING QUARTER SINCE I HAVE BEEN THERE MR BOSSIDY TOOK OVER THE HELM IN JULY 1991 AND SINCE THEN HAS AGGRESSIVELY CUT COSTS AND SOLD UNDERPERFORMING ASSETS MR BOSSIDY SAID THE LATEST RESULTS DEMONSTRATE THE COMPANY'S DETERMINATION TO PRODUCE CONTINUING EARNINGS GAINS HE SAID THAT HE STANDS BY HIS PREVIOUS EARNINGS ESTIMATES OF BETWEEN 450 AND 475 A SHARE FOR THIS YEAR IN 1992 THE COMPANY BASED IN MORRIS TOWNSHIP NJ EARNED 380 BEFORE CHARGES RELATED TO ACCOUNTING CHANGES FOR THE SIX MONTHS THE COMPANY EARNED 319 MILLION OR 225 A SHARE COMPARED WITH A LOSS OF 985 MILLION OR 703 A SHARE A YEAR EARLIER THE 1992 FIGURES ARE RESTATED TO REFLECT ACCOUNTING CHANGES WITHOUT THE ACCOUNTING CHANGES THE COMPANY HAD A PROFIT OF 262 MILLION OR 187 A SHARE IN THE 1992 PERIOD SIXMONTH SALES DECLINED ABOUT 2 TO 596 BILLION FROM 605 BILLION 9307300183 930730 WHO'S NEWS WHITTAKER CORP WHITTAKER CORP LOS ANGELES THOMAS A BRANCATI WAS NAMED PRESIDENT AND ELECTED A DIRECTOR OF THIS AEROSPACE AND DEFENSE ELECTRONICS CONCERN MR BRANCATI 57 YEARS OLD HAD BEEN PRESIDENT OF WHITTAKER'S ELECTRONIC SYSTEMS UNIT SINCE 1987 HE SUCCEEDS JOSEPH F ALIBRANDI 64 WHO WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OF THE COMPANY 9307300182 930730 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK CLIFFORD L ALEXANDER JR 59 YEARS OLD WAS ELECTED A DIRECTOR OF THE PHARMACEUTICALS AND FOODS CONCERN INCREASING THE BOARD'S SIZE TO 14 MR ALEXANDER IS PRESIDENT OF ALEXANDER & ASSOCIATES INC A PRIVATE CONSULTING FIRM A PAST SECRETARY OF THE ARMY AND CHAIRMAN OF THE FEDERAL EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 9307300181 930730 OHM TO POST GAINS FINDLAY OHIO OHM CORP A HAZARDOUSWASTETREATMENT CONCERN SAID IT EXPECTS TO POST EARNINGS PER SHARE FOR ITS SECOND QUARTER OF NINE OR 10 CENTS UP FROM SEVEN CENTS IN THE YEAREARLIER QUARTER THE COMPANY WHICH EXPECTS TO REPORT FINAL RESULTS NEXT WEEK SAID THE GAINS REFLECT CLIENT BASE DIVERSIFICATION AS WELL AS STRONGER GOVERNMENT BUSINESS IT EXPECTS POSITIVE EARNINGS COMPARISONS FOR THE REMAINING HALF OF THE YEAR 9307300180 930730 AMERICAN ELECTRIC UNIT'S BONDS COLUMBUS OHIO OHIO POWER CO A UNIT OF AMERICAN ELECTRIC POWER CO SAID IT WILL REDEEM THE ENTIRE 80 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS FIRST MORTGAGE BONDS 9 SERIES DUE 1994 THE REDEMPTION DATE IS SEPT 1 THE COMPANY SAID THE BONDS WILL BE REDEEMED AT 10045 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THROUGH THE REDEMPTION DATE CHEMICAL BANK NEW YORK IS THE REDEMPTION AGENT 9307300179 930730 PPG WINS TRIAL AGAINST TEXTRON PITTSBURGH PPG INDUSTRIES INC SAID IT RECEIVED A 28 MILLION JUDGMENT IN A JURY TRIAL AGAINST TEXTRON INC FOR INFRINGING PPG'S PATENT ON A FIREPROTECTIVE COATING FOR STEEL PPG FILED THE SUIT IN 1990 TO STOP TEXTRON AND AVCO THE COMPANY TEXTRON ACQUIRED IN 1985 FROM INFRINGING ON ITS PATENT FOR PITTCHAR INTUMESCENT COATING A TEXTRON SPOKESMAN SAID IT EXPECTS TO FILE POSTTRIAL MOTIONS TO HAVE THE VERDICT SET ASIDE OR MODIFIED AND WILL CERTAINLY CONSIDER AN APPEAL 9307300178 930730 WESTERN GAS RESOURCES INC DENVER WESTERN GAS RESOURCES INC SAID IT COMPLETED THE ACQUISITION OF MOUNTAIN GAS RESOURCES INC FOR ABOUT 1646 MILLION INCLUDING TRANSACTION COSTS AND THE ASSUMPTION AND PAYOFF OF CERTAIN LONGTERM DEBT WESTERN AND MOUNTAIN GAS OWN AND OPERATE NATURALGAS GATHERING AND PROCESSING FACILITIES WESTERN SAID IT SEEKS TO BUY MORE SYSTEMS AND TO EXPAND ITS MARKETING AREA THROUGH CONSTRUCTION 9307300177 930730 IBM SEEKS NEW MARKET ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP LAUNCHED A NEW BUSINESS TO SELL PERSONALCOMPUTER MONITORS TO CUSTOMERS OUTSIDE IBM THE MOVE IS PART OF A BROADER PUSH BY THE COMPUTER CONCERN TO FIND NEW MARKETS FOR ITS COMPUTER PARTS WHICH IT TRADITIONALLY BUILT EXCLUSIVELY FOR ITS OWN USE IBM INTRODUCED A LINE OF MONITORS AT PRICES RANGING FROM 500 TO 1600 IBM SAID THE PRODUCTS INCLUDE FEATURES TO LOWER ELECTROMAGNETIC EMISSIONS AND SAVE POWER WHEN THE MONITORS AREN'T IN USE 9307300176 930730 TRAVEL FLIERS DISCOVER THEY DON'T FARE WELL ON THE WEEKENDS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS SHOULD THINK TWICE BEFORE BUYING AIRLINE TICKETS ON A WEEKEND MANY CARRIERS THESE DAYS TEST FARE INCREASES BY RAISING PRICES ON FRIDAY NIGHTS SATURDAYS AND SUNDAYS WHEN FEW TICKETS ARE SOLD IF THEIR RIVALS DON'T GO ALONG THE FARES COME DOWN ON MONDAY THESE TWODAY FARE INCREASES ARE THE UNANTICIPATED BYPRODUCT OF A GOVERNMENT ATTEMPT TO PREVENT ALLEGED COLLUSION ON FARES CARRIERS USED TO SIGNAL PLANNED FARE INCREASES IN COMPUTER RESERVATION SYSTEMS AND THEN WAIT TO SEE WHETHER ALL OTHER AIRLINES FOLLOWED SUIT A SINGLE DEFECTOR COULD SCUTTLE AN INCREASE BECAUSE THE OTHER AIRLINES WOULDN'T RISK LOSING PASSENGERS TO A LOWERPRICED RIVAL BUT A JUSTICE DEPARTMENT CONSENT DECREE WHICH MOST MAJOR AIRLINES HAVE BEEN FOLLOWING SINCE JANUARY HAS PROHIBITED CARRIERS FROM SIGNALING PRICE ACTIONS THE WEEKEND FARE INCREASES ARE A WAY TO ACCOMPLISH THE SAME PURPOSE WITH LIMITED RISK EVEN IF COMPETITORS DON'T MATCH THE HIGHERPRICED CARRIERS WON'T LOSE MUCH BUSINESS OVER A WEEKEND AND CAN BACK DOWN ON MONDAY MORNING AIRLINES PUSHED UP ALL ADVANCEPURCHASE FARES 5 THE WEEKEND OF JULY 10 AND THOSE INCREASES STUCK THE FOLLOWING WEEKEND SAW FULLCOACH FARES RISE 5 THOSE INCREASES ALSO STUCK BUT LAST WEEKEND MANY CARRIERS RAISED ADVANCEPURCHASE PRICES 5 ONLY TO PULL BACK ON MONDAY BECAUSE SOME AIRLINES BALKED SO FLIERS WHO BOUGHT EXCURSION TICKETS ON SATURDAY OR SUNDAY PAID 5 MORE THAN IF THEY HAD BOUGHT THE SAME TICKETS ON THE FRIDAY BEFORE OR THE MONDAY AFTER OVER THE WEEKEND JOHN Q CONSUMER GOT SNUFFED SAYS TOM PARSONS EDITOR OF BEST FARES A TRADE PUBLICATION IN ARLINGTON TEXAS THERE'S MORE BAD NEWS FOR PASSENGERS WHO BUY ADVANCEPURCHASE TICKETS AT PHANTOM WEEKEND PRICES MANY AIRLINES RECENTLY INCREASED THE FEE THEY CHARGE TO REISSUE A TICKET AT A CHEAPER FARE LAST YEAR MOST AIRLINES BEGAN REISSUING ADVANCEPURCHASE TICKETS THEY HAD BEEN NONREFUNDABLE FOR A 25 CHARGE BUT IN RECENT WEEKS SEVERAL CARRIERS INCLUDING TRANS WORLD AIRLINES CONTINENTAL AIRLINES AND USAIR GROUP INC'S USAIR UNIT HAVE RAISED THE FEE TO 30 OR 35 THE AIRLINES SAY THE HIGHER CHARGE REFLECTS THE TRUE COSTS OF REISSUING THE TICKET BUT TRAVELERS SAY THEY DESERVE A BREAK WHEN CARRIERS ARE CHANGING FARES RAPIDLY IF A CUSTOMER FINDS OUT ABOUT A LOWER FARE SAYS DONALD PEVSNER A MIAMI TRAVEL LAWYER HE SHOULD BE ABLE TO GET A NEW TICKET FOR FREE WEEKEND PRICE INITIATIVES COULD BECOME ROUTINE BECAUSE AIRLINES NEED TO RAISE PRICES TO IMPROVE THEIR BALANCE SHEETS IN PARTICULAR FULL COACH FARES USED BY BUSINESS TRAVELERS ARE EXPECTED TO RISE AFTER THE SUMMER VACATION SEASON BUT CONSUMER ADVOCATES SAY WEEKEND PRICE MOVES ARE A PLOY TO AVOID UNFAVORABLE PUBLICITY EVERYONE IN THE TRAVEL INDUSTRY IS TRYING TO RAISE PRICES IN WHATEVER WAY WILL BE LEAST INTRUSIVE SAYS ED PERKINS EDITOR OF CONSUMER REPORTS TRAVEL LETTER PRICE INCREASES ON SATURDAY AND SUNDAY HE SAYS ARE LESS LIKELY TO RUN ON THE FRONT PAGE OF THE PAPER BECAUSE BUSINESS REPORTERS USUALLY DON'T WORK ON WEEKENDS THIS MONTH'S WEEKEND INITIATIVES HAVE BEEN LED BY CONTINENTAL AND UAL CORP'S UNITED AIRLINES INDUSTRY OFFICIALS SAY SEVERAL CARRIERS CALL THE PRACTICE LEGITIMATE IT'S FAIRLY WIDESPREAD THROUGHOUT THE INDUSTRY SAYS A SPOKESMAN FOR NORTHWEST A UNIT OF WINGS HOLDINGS INC OTHER AIRLINES BLAME THE PHANTOM FARE INCREASES ON THE JUSTICE DEPARTMENT MOST AIRLINES HAVE DENIED ANY COLLUSION BUT HAVE STOPPED SIGNALING FARE CHANGES THE WEEKEND INCREASES ARE THE INDUSTRY'S WAY OF OPERATING UNDER THE CONSTRAINTS OF THE CONSENT DECREE SAYS A SPOKESMAN FOR AMR CORP'S AMERICAN AIRLINES 9307300175 930730 TECHNOLOGY & HEALTH PURCHASING POOLS GO AFTER HEALTH COSTS EMPLOYERS INCREASINGLY LINK UP TO JUMPSTART REFORM BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE GROWING NUMBERS OF EMPLOYERS ARE POOLING THEIR BUYING POWER TO RESHAPE LOCAL HEALTHCARE MARKETS AMID NEW EVIDENCE THAT SUCH STRATEGIES ARE HELPING TO STANCH RISING HEALTH COSTS LEADERS OF THE NATIONAL BUSINESS COALITION ON HEALTH AN UMBRELLA ASSOCIATION FOR LOCAL EMPLOYER GROUPS REPORTED AT A MEETING HERE THIS WEEK THAT ABOUT 70 MEMBER ORGANIZATIONS NOW ARE ENGAGED IN COLLECTIVE PURCHASING AND QUALITY INITIATIVES IN COMMUNITIES AROUND THE US UP FROM 45 LESS THAN A YEAR AGO MORE THAN 4000 COMPANIES RANGING FROM MOMANDPOP BUSINESSES TO SUCH CORPORATE NAMEPLATES AS WALT DISNEY CO FEDERAL EXPRESS CORP AND BOEING CO BELONG TO COALITIONS WHICH ACCOUNT FOR MORE THAN 20 MILLION EMPLOYEES AND DEPENDENTS THE SURGE OF INTEREST COMES AS THE CLINTON ADMINISTRATION IS POISED TO EMBRACE COLLECTIVE PURCHASING AS A CORNERSTONE OF ITS WIDELY ANTICIPATED HEALTH REFORM PLAN BUT RATHER THAN FEELING COMFORTED COALITION LEADERS WORRY THAT THE HEALTH PURCHASING ALLIANCES ENVISIONED UNDER THE CLINTON PLAN COULD PUT MANY EMPLOYER GROUPS OUT OF BUSINESS WE ARE A BOOMING MOVEMENT YET WE COULD BE PUT AT RISK SAID SEAN SULLIVAN EXECUTIVE DIRECTOR OF THE NATIONAL ORGANIZATION IN WASHINGTON THE CONCERN REFLECTS AN EMERGING BATTLE BETWEEN MANY EMPLOYERS AND GOVERNMENT REFORMERS OVER HOW HEALTH CARE SHOULD BE PURCHASED IN THE CHANGING HEALTHCARE SYSTEM AND HOW PURCHASING STRATEGIES WILL INFLUENCE THE COST AND QUALITY OF CARE UNDER THE CLINTON PLAN HEALTH ALLIANCES WOULD BE ESTABLISHED IN REGIONS ACROSS THE US TO SOLICIT BIDS FROM HEALTH PLANS AND PROVIDE INFORMATION TO HELP CONSUMERS CHOOSE PLANS BASED ON COST AND QUALITY EMPLOYERS WOULD FOOT MUCH OF THE BILL FOR THEIR EMPLOYEES BUT THEY WOULDN'T PLAY A DIRECT ROLE IN STEERING EMPLOYEES TO SELECTED PLANS OR IN MONITORING THE QUALITY OF CARE BUSINESSES WITH MORE THAN 5000 EMPLOYEES WOULD BE EXEMPT UNDER THE CURRENT ADMINISTRATION PROPOSALS BUT THEY WOULD BE EXPECTED TO ACT AS CORPORATE ALLIANCES UNDER RULES SET UP FOR THE GOVERNMENTSANCTIONED PURCHASING GROUPS TO BE SURE COALITION LEADERS AND EMPLOYERS SUPPORT THE CLINTON HEALTH ALLIANCES AS A WAY TO EXTEND PURCHASING POWER TO CONSUMERS INCLUDING THE UNINSURED AND MEDICAID RECIPIENTS WHO LACK SUFFICIENT ACCESS TO HEALTH CARE BUT THEY MAINTAIN THAT SETTING UP AN EXCLUSIVE ALLIANCE IN EACH REGION AS THE CLINTON PROGRAM ENVISIONS WOULD STIFLE INITIATIVES THAT HAVE BEGUN TO PROVOKE PRICE AND QUALITY COMPETITION AMONG HOSPITALS DOCTORS AND HEALTH PLANS IN DOZENS OF US COMMUNITIES WE DON'T WANT TO BE SWEPT UP INTO PUBLICLY DESIGNATED PURCHASING BODIES SAID MR SULLIVAN MOREOVER THEY ARGUE THAT THE ALLIANCES WILL BE UNABLE TO FORGE THE KIND OF PARTNERSHIPS WITH HEALTH PROVIDERS THAT EMPLOYERS BELIEVE ARE CRUCIAL TO IMPROVE QUALITY AND ROOT OUT INEFFICIENT MEDICAL PRACTICES THAT INFLATE COSTS EMPLOYER COALITIONS LIKE DOCTORS INSURERS AND OTHER GROUPS ARE MOVING TO PROTECT THEIR INTERESTS AS THE NATION BRACES FOR SWEEPING CHANGES IN BOTH THE FINANCING AND DELIVERY OF HEALTH CARE SEVERAL GROUPS OFFERED NEW DATA THAT SUGGESTS THEIR PURCHASING STRATEGIES ALREADY ARE HELPING TO BRING ABOUT MARKETPLACE CHANGES THAT YIELD BENEFITS NOT ONLY FOR MEMBERS BUT FOR THEIR COMMUNITIES THESE ORGANIZATIONS ARE JUMPSTARTING HEALTH REFORM SAID RICHARD SHARPE OF THE JOHN A HARTFORD FOUNDATION A NEW YORK PHILANTHROPY THAT HAS PROVIDED FINANCIAL SUPPORT FOR A VARIETY OF COALITION ACTIVITIES IN ORLANDO FLA FOR INSTANCE THE 78MEMBER CENTRAL FLORIDA HEALTH CARE COALITION PERSUADED MOST OF THE REGION'S HOSPITALS INCLUDING THE TWO LARGEST TO USE THE SAME SOFTWARE SYSTEM TO ANALYZE DIFFERENCES IN COSTS AND QUALITY OF CARE PROVIDED TO PATIENTS WITH THE SAME ILLNESSES THE HOSPITALS AND THEIR DOCTORS ARE USING THE DATA TO IDENTIFY AND REDUCE THE USE OF TESTS AND PRACTICES THAT DON'T HELP PATIENTS AS A RESULT COSTS PER PATIENT ADMISSION FOR THE TWO MAJOR HOSPITALS FELL 2 IN EACH OF THE PAST TWO YEARS AFTER RISING SHARPLY IN PREVIOUS YEARS SAID MARILYN BELL EXECUTIVE DIRECTOR OF THE COALITION DEATH AND COMPLICATION RATES IMPROVED ACROSS A VARIETY OF PROCEDURES ONE HOSPITAL SHARPLY CURTAILED THE USE OF LAB TESTS PHYSICAL THERAPY RADIOLOGY AND OTHER SERVICES AND ROLLED BACK PRICES FOR DELIVERING BABIES BY 10 SAVINGS FOR PURCHASERS ENABLED THE ORANGE COUNTY SCHOOL BOARD A COALITION MEMBER TO KEEP 20 TEACHING JOBS IT PLANNED TO CUT TO MEET ITS BUDGET IN MEMPHIS A FIVEYEAR RELATIONSHIP BETWEEN THE 50MEMBER MEMPHIS BUSINESS GROUP ON HEALTH AND BAPTIST HOSPITAL HAS HELPED BRING ABOUT SIMILAR GAINS IN COST AND QUALITY IT ALSO HAS ENABLED THE COALITION'S OLDEST MEMBERS TO HOLD HEALTH COST INCREASES TO AN ANNUAL AVERAGE OF 6 OVER THE PAST FIVE YEARS THE NATIONAL AVERAGE ACCORDING TO BENEFIT CONSULTANT A FOSTER HIGGINS WAS NEARLY 15 A YEAR OVER THE SAME PERIOD NOW THE HOSPITAL AND THE BUSINESS GROUP ARE PLANNING A JOINT EFFORT TO OFFER HEALTH SERVICES TO COMPANIES WITH UNDER 100 EMPLOYEES AT THE PRICES PAID BY COALITION MEMBERS ONCE A HOSPITAL LEARNS TO PRACTICE COSTEFFECTIVE CARE THAT CARE IS AVAILABLE NOT JUST TO COALITION MEMBERS BUT TO THE ENTIRE COMMUNITY SAID DONNA MILLER CHIEF EXECUTIVE OF THE BUSINESS GROUP 9307300174 930730 LAWYERS TITLE ACQUIRES FIRMS RICHMOND VA LAWYERS TITLE CORP SAID IT ACQUIRED TWO TEXAS TITLE INSURANCE COMPANIES CHARTER TITLE CO HOUSTON AND CHARTER TITLE COFORT BEND FORT BEND COUNTY TEXAS TERMS WEREN'T DISCLOSED LAWYERS TITLE PROVIDES TITLE INSURANCE SERVICES TO RESIDENTIAL AND COMMERCIAL CUSTOMERS 9307300173 930730 MIDWEST GRAIN PLANT PRODUCTION ATCHISON KAN MIDWEST GRAIN PRODUCTS INC RESUMED PRODUCTION AT ITS PLANT HERE RETURNING TO THEIR JOBS ABOUT 100 WORKERS WHO HAD BEEN LAID OFF AFTER MISSOURI RIVER FLOODING FORCED A SHUTDOWN SUNDAY SANDBAGS SUMP PUMPS AND ELECTRICAL GENERATORS HELPED REVIVE A COOLING WATER PUMPING STATION NECESSARY FOR THE PLANT'S DISTILLERY PROCESS THE PUMPING STATION WAS FLOODED AFTER A LEVEE BROKE THE PRODUCER OF WHEAT AND GRAIN PRODUCTS SAID 9307300172 930730 CORNING BUYS 9 STAKE IN MDL CORNING NY CORNING INC SAID IT PAID ABOUT 81 MILLION FOR A 9 STAKE IN MDL INFORMATION SYSTEMS INC A SAN LEANDRO CALIF SUPPLIER OF CHEMICAL INFORMATIONMANAGEMENT SOFTWARE AND DATABASES TO THE PHARMACEUTICAL AND CHEMICAL INDUSTRIES CORNING A SPECIALTY MATERIALS OPTICAL FIBER AND HOUSEWARES CONCERN SAID THE MOVE EXPANDS ITS INTERESTS IN THE SCIENTIFIC INFORMATION FIELD MDL COMPLETED ITS INITIAL PUBLIC OFFERING YESTERDAY 9307300171 930730 WHO'S NEWS DIGITAL EQUIPMENT'S JOHNSON RESIGNS POST MAYNARD MASS DIGITAL EQUIPMENT CORP SAID THAT WILLIAM R JOHNSON VICE PRESIDENT CORPORATE MARKETING RESIGNED TO PURSUE OTHER INTERESTS MR JOHNSON WHO RAN DIGITAL'S FASTGROWING NETWORKING BUSINESS DURING THE COMPANY'S BOOM YEARS FROM 1985 TO 1991 WAS PROMOTED BY KENNETH H OLSEN FOUNDER AND FORMER PRESIDENT TO OVERSEE ALL MARKETING IN 1991 THAT ROLE WAS CEDED IN APRIL TO EDWARD LUCENTE WHO WAS HIRED BY MR OLSEN'S SUCCESSOR ROBERT B PALMER TO HEAD SALES AND MARKETING MR JOHNSON 51 YEARS OLD WORKED FOR DIGITAL FOR 20 YEARS AND ROSE TO ITS HIGHEST RANKS HE SAID HE PLANS TO SEEK ANOTHER SENIOR POSITION PROBABLY IN THE COMPUTER NETWORKING INDUSTRY 9307300170 930730 WHO'S NEWS TRW INC TRW INC CLEVELAND JAMES T LYNN 66 YEARS OLD A SENIOR ADVISER AT INVESTMENT BANKING FIRM LAZARD FRERES & CO AND RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF AETNA LIFE & CASUALTY CO WAS ELECTED A DIRECTOR OF THIS AUTOMOTIVE INFORMATION AND AEROSPACE CONCERN HE FILLS A VACANCY CREATED BY P ROY VAGELOS THE CHAIRMAN AND CHIEF EXECUTIVE OF MERCK & CO WHO DIDN'T STAND FOR REELECTION TO THE BOARD ON APRIL 28 THE BOARD SIZE STANDS AT 13 MEMBERS 9307300169 930730 TECHNOLOGY & HEALTH MEDCO'S SALE HOLDS FEE OF 60 MILLION FOR CHIEF WYGOD BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN WYGOD CHAIRMAN OF MEDCO CONTAINMENT SERVICES INC STANDS TO COLLECT A 60 MILLION FEE IN CONNECTION WITH THE PENDING SALE OF MEDCO TO MERCK & CO THAT WOULD BE ONE OF THE BIGGEST NONUNDERWRITING FEES OF ALL TIME ASSOCIATED WITH A CORPORATE TAKEOVER THE ONLY LARGER SUCH FEE ON RECORD ACCORDING TO SECURITIES DATA CO IS THE 75 MILLION THAT KOHLBERG KRAVIS ROBERTS & CO COLLECTED IN 1989 FOR ADVISING ITSELF ON HOW TO BUY RJR NABISCO INC MEDCO ASSERTED THAT MR WYGOD'S FEE SHOULDN'T COME AS ANY SURPRISE TO SHAREHOLDERS IN THE MONTVALE NJ PHARMACYBENEFITS COMPANY IT SAID THE FORMULA FOR MR WYGOD'S FEE HAS BEEN DISCLOSED IN MEDCO'S PROXY STATEMENT TO SHAREHOLDERS FOR YEARS AS SPELLED OUT IN MEDCO'S NOVEMBER 1992 PROXY MR WYGOD IS ENTITLED TO COLLECT 1 OF THE PROCEEDS FROM A SALE OF MEDCO EARLIER THIS WEEK MERCK AGREED TO BUY MEDCO FOR 6 BILLION NONETHELESS MR WYGOD'S WINDFALL IS LIKELY TO MAKE HEADS TURN BOTH IN THE PHARMACEUTICAL INDUSTRY AND ON WALL STREET WHILE SEVERAL TOP MERCK EXECUTIVES COLLECT ANNUAL SALARIES AND BONUSES OF 1 MILLION OR MORE AND WHILE MERCK'S CHAIRMAN ROY VAGELOS OWNS OR HAS OPTIONS ON MORE THAN 10 MILLION OF MERCK STOCK NO ONE AT MERCK IS BELIEVED TO HAVE INDIVIDUAL WEALTH APPROACHING MR WYGOD'S FEE ALONE EXPLAINING MR WYGOD'S FEE MEDCO'S CHIEF FINANCIAL OFFICER JAMES MANNING SAID IT WAS APPROVED BY THE MEDCO BOARD AS A WAY TO RECOGNIZE THE TREMENDOUS INCREASE IN VALUE HE HAD CREATED FOR SHAREHOLDERS MR MANNING ALSO SAID THE DISPOSITION FEE WAS IMPLEMENTED A FEW YEARS AGO WHEN MR WYGOD GAVE UP A SYSTEM OF INCENTIVE PAY TIED TO MEDCO'S INCREASES IN SALES AND PROFITS MEDCO STOCK HAS SOARED MORE THAN TWENTYFOLD SINCE THE EARLY 1980S WHEN MR WYGOD TOOK OVER AS CHAIRMAN THE COMPANY ALSO HAS EXPANDED FROM A HANDFUL OF MAILORDER PHARMACY ACCOUNTS TO BECOME THE BIGGEST MANAGEDCARE PHARMACY COMPANY IN THE US WITH ANNUAL REVENUE OF MORE THAN 25 BILLION WHEN THE MERCKMEDCO TRANSACTION WAS ANNOUNCED WEDNESDAY MR WYGOD SAID HE WOULD INVEST 32 MILLION OF HIS OWN MONEY IN MERCK STOCK MR MANNING SAID THAT THIS AMOUNT REPRESENTS MR WYGOD'S AFTERTAX PROCEEDS FROM HIS 60 MILLION FEE AT LEAST TWO OTHER MEDCO EXECUTIVES ALSO WILL COLLECT DISPOSITION FEES ACCORDING TO THE MEDCO PROXY THE NEXT LARGEST FEE OF 025 OF THE TAKEOVER VALUE OR 15 MILLION STANDS TO GO TO MR MANNING 9307300168 930730 COCACOLA VENTURE IN CHINA HONG KONG COCACOLA CO SAID IT IS UNDERTAKING A SECOND VENTURE WITH ROBERT KUOK'S KERRY GROUP IN CHINA THE VENTURE INVOLVES A 25 MILLION COKE INVESTMENT IN A BOTTLING PLANT IN CHONGQING IN THE PROVINCE OF SICHUAN THE CHONGQING PLANT WILL BE 60 OWNED BY KERRY BEVERAGES A JOINT VENTURE BETWEEN THE KERRY GROUP AND A SUBSIDIARY OF ATLANTABASED COCACOLA WITH THE REST OWNED BY ONE OF CHINA'S LARGEST SOFTDRINK COMPANIES TIANFU HOLDINGS CO 9307300167 930730 AMERICAN EXPRESS CO PLANS OFFERING OF DEBT EXCHANGEABLE FOR STOCK NEW YORK AMERICAN EXPRESS CO PROPOSED AN INVESTMENT WRINKLE THAT HELPS TAP THE VALUE OF ITS 850 MILLION HOLDING IN FIRST DATA CORP WHILE POTENTIALLY GENERATING FURTHER RETURNS ON THE INVESTMENT THE TRAVEL AND FINANCIAL SERVICES COMPANY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL THREEYEAR NOTES EXCHANGEABLE INTO 20 MILLION SHARES OF FIRST DATA AMERICAN EXPRESS TOOK THIS CREDIT CARD AND HIGHVOLUME PROCESSING COMPANY PUBLIC LAST YEAR AND OWNS A 20 STAKE THE OFFERING IS THE LATEST IN A SERIES OF FINANCING VEHICLES DEVISED BY SALOMON BROTHERS INC A UNIT OF SALOMON INC THE NOTES ARE CALLED DECS OR DEBT EXCHANGEABLE FOR COMMON STOCK IT ESSENTIALLY GIVES AMERICAN EXPRESS A FLOOR PRICE FOR ITS REMAINING 236 MILLION SHARES OF FIRST DATA WHILE LETTING THE COMPANY SHARE IN ANY PRICE APPRECIATION IN NEW YORK STOCK EXCHANGE TRADING FIRST DATA SHARES CLOSED AT 3625 DOWN 50 CENTS WHILE TERMS OF THE VEHICLE WILL BE SET AT THE TIME OF OFFERING COMPANY OFFICIALS SAID THE PRICE AT WHICH THE DECS CAN BE EXCHANGED WILL BE SET AT A PREMIUM OVER THE CURRENT MARKET PRICE AT MATURITY AMERICAN EXPRESS WILL APPLY A FORMULA TO DETERMINE HOW MUCH A NOTE HOLDER WILL RECEIVE WITH THE RATIO TO BE SET AT THE TIME OF THE OFFERING IF FIRST DATA STOCK IS TRADING AT LESS THAN OR EQUAL TO THE PRICE PAID FOR A SECURITY THE OWNER WILL RECEIVE ONE FIRST DATA SHARE IF FIRST DATA IS TRADING AT A PRICE BETWEEN THE DECS' INITIAL OFFERING PRICE AND THE CONVERSION PRICE THE INVESTOR WILL RECEIVE FIRST DATA STOCK EQUAL TO THE OFFERING PRICE AND IF FIRST DATA IS TRADING ABOVE THE CONVERSION PRICE THE INVESTOR WILL RECEIVE PART OF THE APPRECIATION AND AMERICAN EXPRESS WILL RECEIVE PART 9307300166 930730 ASARCO SELLS STAKE IN UNIT NEW YORK ASARCO INC SAID IT SOLD 99 OF THE SHARES OF ITS ASARCO AUSTRALIA LTD GOLDMINING UNIT TO THE PUBLIC FOR 138 MILLION PROCEEDS WILL BE USED TO REDUCE DEBT THE COMPANY SAID IT WILL RECORD A 10 MILLION PRETAX GAIN ON THE SALE THE SALE WILL LEAVE ASARCO WITH 498 OF THE UNIT WHICH PRODUCED ABOUT 110000 OUNCES OF GOLD OUT OF WESTERN AUSTRALIA MINES IN 1992 ASARCO SAID THE SALE IS IN STEP WITH ITS GOAL OF REDUCING THE COMPANY'S DEBT TO 25 OF CAPITALIZATION AT THE END OF THE SECOND QUARTER DEBT WAS ABOUT 419 OF TOTAL CAPITAL 9307300165 930730 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AGCO CORP A SECONDARY OFFERING OF 15 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO AND DILLON READ & CO SAN DIEGO GAS & ELECTRIC CO A SHELF OFFERING OF UP TO FIVE MILLION SHARES OF PREFERENCE STOCK TRICORD SYSTEMS INC AN OFFERING OF 275 MILLION COMMON SHARES VIA SMITH BARNEY & CO ROBERTSON STEPHENS & CO AND DAIN BOSWORTH INC 9307300164 930730 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 281509 METRIC TONS IN THE WEEK ENDED SATURDAY UP 18 FROM 276647 TONS IN THE PRECEDING WEEK AND UP 32 FROM 213895 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1993 IS 8075475 TONS UP 5 FROM 7692855 IN 1992 9307300163 930730 INTERNATIONAL ITALY TO CONTINUE PROBE OF ANDREOTTI ALLEGATIONS ROME ITALY'S SENATE VOTED TO WAIVE THE PARLIAMENTARY IMMUNITY OF FORMER PRIME MINISTER GIULIO ANDREOTTI ALLOWING MAGISTRATES IN ROME TO CONTINUE TO INVESTIGATE ALLEGATIONS THAT HE COLLABORATED WITH AT LEAST FIVE MAFIA BOSSES IN THE PREMEDITATED MURDER OF A JOURNALIST 14 YEARS AGO MR ANDREOTTI WHO HELD THE PREMIERSHIP SEVEN TIMES WAS ALREADY BEING INVESTIGATED FOR ALLEGED LINKS TO THE SICILIAN MAFIA THE SENATE WAIVED HIS IMMUNITY ON THAT CASE IN MAY IMMUNITY OF MEMBERS OF PARLIAMENT MUST BE WAIVED ON EACH ACCUSATION BEFORE INVESTIGATIONS CAN CONTINUE THE 74YEAROLD SENATORFORLIFE WAS ACCUSED BY MAFIA DEFECTORS OF HAVING BEEN THE SICILIAN MAFIA'S MAIN REFERENCE POINT IN ROME FOR DECADES AND OF ORDERING THE 1979 SHOOTING OF JOURNALIST MINO PECORELLI MR ANDREOTTI HAS DENIED ALL THE ACCUSATIONS BUT ASKED THAT HIS IMMUNITY BE LIFTED SO THE TRUTH COULD BE ASCERTAINED ACCORDING TO TESTIMONY FROM MAFIA DEFECTORS MR PECORELLI ALLEGEDLY HAD UNCOVERED INFORMATION ABOUT THE MURDER OF FORMER PRIME MINISTER ALDO MORO BY RED BRIGADES TERRORISTS IN 1978 9307300162 930730 LESLIE FAY GETS COURT RULING NEW YORK LESLIE FAY COS SAID THAT THE US BANKRUPTCY COURT IN MANHATTAN GRANTED AN 120DAY EXTENSION OF THE EXCLUSIVITY PERIOD GIVING THE COMPANY'S EXISTING MANAGEMENT UNTIL DEC 3 TO FILE A REORGANIZATION PLAN THE WOMEN'S APPAREL COMPANY WHICH FILED FOR CHAPTER 11 PROTECTION LAST MARCH SAID THAT IT EXPECTS TO ISSUE ITS RESTATED FINANCIAL STATEMENTS FOR 1991 AND 1992 BY THE END OF AUGUST LESLIE FAY ALSO SAID THAT THE INITIAL PHASE OF ITS INVESTIGATION INTO ALLEGED ACCOUNTING IRREGULARITIES WILL BE CONCLUDED WITHIN SEVERAL WEEKS 9307300161 930730 LEISURE & ARTS SAVOY REOPENS WITH PIROUETTES & PAWNS BY PAUL LEVY MIND YOU THE SAVOY NAME IS PRETTY RESONANT ATTACHED TO THE SAVOY HOTEL AND ONLY A FEW STEPS FROM THE ANCIENT ROYALTY FREQUENTED SAVOY CHAPEL THE THEATER OCCUPIES ITS OWN CHUNK OF HISTORY AS THE VENUE FOR GILBERT & SULLIVAN'S SAVOY OPERAS FROM PATIENCE TO THE GONDOLIERS THESE ARE IN TURN COMMEMORATED IN THE NAMES OF THE PRIVATE ROOMS OF THE SAVOY HOTEL WHERE A LUNCHEON CLUB FOR THE BRITISH ESTABLISHMENT THE OTHER CLUB AS OPPOSED TO THE HOUSE OF COMMONS WAS FOUNDED IN 1911 BY THE THEN OUTOFOFFICE WINSTON CHURCHILL AND FE SMITH AS LORD BIRKENHEAD THEN WAS AND STILL MEETS EVERY MONTH IN THE PINAFORE ROOM THE THEATER WAS BUILT FIRST IN 1881 THE ONLY ONE IN THE WORLD TO BE LIT BY ELECTRICITY AND THUS IN WHICH THE AUDITORIUM COULD BE DARKENED COMPLETELY IN FACT IT WAS RICHARD D'OYLY CARTE THE IMPRESARIO OF THE GILBERT & SULLIVAN OPERAS WHO HAD THE GRAND VISION OF BUILDING THE SAVOY COMPLEX CHIEFLY ON THE PROCEEDS OF THE MIKADO HE HAD THE VISION OF A GRAND HOTEL ON THE SIGHT OF THE MEDIEVAL SAVOY PALACE AND OPENED HIS HOTEL ONE OF THE FIRST TO HAVE ELEVATORS BATHROOMS FOR MOST OF THE GUESTS A KITCHEN CLOSE TO THE RESTAURANT AND ON THE SAME FLOOR AND ELECTRICITY INSTEAD OF GAS IN AUGUST 1889 BUT IT WAS NOT A SUCCESS UNTIL DECEMBER WHEN CESAR RITZ TOOK OVER THE MANAGEMENT AND BROUGHT AUGUSTE ESCOFFIER WITH HIM AS CHEF LONGSUPPRESSED THE STORY OF HOW LESS THAN NINE YEARS LATER RITZ AND ESCOFFIER WERE FIRED FOR BEING ON THE TAKE WAS FIRST TOLD BY ME IN THESE PAGES IN 1986 AMUSINGLY ENOUGH SIR ARTHUR SULLIVAN WAS A MEMBER OF THE SAVOY'S COMMITTEE OF INVESTIGATION THAT OBLIGED RITZ AND ESCOFFIER TO CONFESS AS HE WAS A VICTORIAN GENTLEMAN IT NEVER OCCURRED TO SULLIVAN THAT THE SCANDAL WOULD HAVE MADE A TERRIFIC PLOT FOR A SAVOY OPERA THE SAVOY THEATRE THAT WAS DESTROYED BY FIRE THREE YEARS AGO WAS THE THIRD ONE ON THE SITE AND THE PRESENT ONE IS A SCRUPULOUS RESTORATION OF THE 1929 BASIL IONIDES ARTDECO VERSION BUT WITH THE ADDITION OF 300 SEATS THIS SHOULD MAKE THE THEATER ABLE TO ACCOMMODATE MUSICALS AND IN TURN MAKE THE ENTERPRISE ECONOMICALLY VIABLE THERE HAD BEEN SOME TALK EARLIER OF CHANGING THE INTERIOR OF THE BUILDING AND CONSTRUCTING A THEATER FOR THE 1990S BUT THE PROVISIONS OF THE INSURANCE COVERING THE FIRE DAMAGE PUT AN END TO THAT SO THE SAVOY THEATRE OPENED LAST WEEK LOOKING EXACTLY AS IT DID WHEN IT OPENED IN ITS THIRD INCARNATION ON OCT 21 1929 THEN WITH A REVIVAL OF THE GONDOLIERS DESIGNED BY CHARLES RICKETTS AND CONDUCTED BY MALCOLM SARGENT THE WALLS AGAIN GLITTERED WITH ALUMINUM FOIL RISING TO A CEILING PAINTED TO REPRESENT A CLEAR APRIL SKY ONE DIFFERENCE IS THAT THE SEATS ARE NOW THE MOST COMFORTABLE IN ANY LONDON THEATER THEY ARE STILL UPHOLSTERED IN DIFFERENT COLORS BUT PATRONS ARE NO LONGER INFORMED WHEN THEY RECEIVE THEIR TICKETS OF THE HUE OF THEIR SEAT SO AS TO ALLOW THE LADIES TO DRESS ACCORDINGLY WHEN THE PROGRAM FOR THIS MONTH'S OPENING A ROYAL GALA GIVEN BY THE ENGLISH NATIONAL BALLET TO BE ATTENDED BY THE PRINCESS OF WALES WAS ANNOUNCED THERE WAS A FLURRY OF CORRESPONDENCE IN THE LETTERS COLUMNS OF THE BROADSHEET NEWSPAPERS WHY DEMANDED THE PROVERBIAL DISGUSTED OF TUNBRIDGE WELLS WAS THE SAVOY NOT REOPENING WITH A GILBERT & SULLIVAN OPERA THE SAD TRUTH IS THAT THE ARTISTIC STANDARDS OF THE D'OYLY CARTE COMPANY ARE NOT WHAT THEY WERE AND THAT SINCE THE OPERAS HAVE RECENTLY GONE OUT OF COPYRIGHT THE GILBERT & SULLIVAN TORCH HAS PASSED TO THE ENGLISH NATIONAL OPERA WITH ITS IMAGINATIVE IF NOT ALWAYS POPULAR PRODUCTIONS SUCH AS JONATHAN MILLER'S WONDERFUL MIKADO AND KEN RUSSELL'S OUTLANDISH PRINCESS IDA INSTEAD BUT VERY APPROPRIATELY THE ENGLISH NATIONAL BALLET COMMISSIONED WAYNE SLEEP THE HEIGHTCHALLENGED DANCER WHO IS STILL AT 45 ONE OF THE GREAT CHARACTER DANCERS OF OUR ERA TO CHOREOGRAPH AND STAR IN A PIECE D'OCCASION HE'S CALLED SAVOY SUITE CARL DAVIS'S MUSIC INGENIOUSLY QUOTES A REDISCOVERED EARLY SULLIVAN BALLET L'ILE ENCHANTEE ALONG WITH SNATCHES OF MORE FAMILIAR G&S TUNES AND MR SLEEP HAS CREATED A WITTY BALLET THAT BEGINS WITH THE DANCERS WEARING FLUORESCENT COSTUMES AND SPELLING OUT THE TITLE BY ASSUMING ODD POSTURES ON THE WHOLE THE CHOREOGRAPHY CALLS FOR CONVENTIONAL HIGHLY ATHLETIC CLASSICAL BALLET BUT WITH LOTS OF JAZZDANCE TRICK STEPS A PUGNACIOUS TAP DUEL BETWEEN MR SLEEP AS GILBERT AND THE VERY TALL SIMON COOPER AS SULLIVAN AND PLENTY OF THE WHIRLING PIROUETTES AT WHICH MR SLEEP EXCELS THE CRITICAL CONSENSUS HERE IS THAT HE'S CREATED A PIECE THAT WILL REMAIN IN THE REPERTORY NO MEAN FEAT THE TIMES OF LONDON HERALDED IT THE NEXT DAY IN AN EDITORIAL WRITTEN ENTIRELY IN GILBERTIAN VERSE AFTER LAST SATURDAY WHEN THE BRIEF RUN ENDED THE THEATER AND THE BALLET COMPANY EACH WENT THEIR OWN WAY THE NEXT SHOW SCHEDULED FOR THE SAVOY THEATRE IS THE SHORTKASPAROV CHESS MATCH FROM SEPT 7OCT 30 WHILE THE ENGLISH NATIONAL BALLET HAS MOVED OVER TO THE ROYAL FESTIVAL HALL UNTIL AUG 7 THE BALLET COMPANY HAS A PROBLEM ITS NEW DIRECTOR DEREK DEANE IS HAVING TO REDEFINE THE COMPANY'S MISSION ORIGINALLY ENB WAS ESTABLISHED TO PROVIDE STARSPANGLED POPULAR ENTERTAINMENT FOR AUDIENCES ALIENATED BY THE POSHNESS OF THE ROYAL BALLET PRESIDED OVER BY THE AMERICANBORN CHAIRMAN PAMELA LADY HARLECH WHOSE LACQUERED BLACK WINGLIKE COIFFURE HAS ENGAGED THE ATTENTIONS OF THE BRITISH PRESS FOR THE PAST TWO WEEKS ENB HAS TO FIND A WAY OF BALANCING USERFRIENDLY PRODUCTIONS WITH SOME SLIGHTLY MORE DARING ONES IF IT IS TO CREATE AN AUDIENCE OF ITS OWN MEANWHILE THE PRINCESS OF WALES REMAINS ITS PATRON WHICH WILL AT LEAST ENSURE A GOOD TURNOUT FOR SPECIAL OCCASIONS 9307300160 930730 WHO'S NEWS MACY IS CONSIDERING FARAH OF FEDERATED AS CHIEF MERCHANT NEW YORK RH MACY & CO WHICH HAD ANNOUNCED IT WOULD NAME A NEW CHIEF MERCHANT THIS SUMMER IS SAID TO BE NEGOTIATING WITH ROGER H FARAH AN EXECUTIVE AT FEDERATED DEPARTMENT STORES INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION INDIVIDUALS CLOSE TO MACY'S SAY COMPANY OFFICIALS HAVE NARROWED THEIR CHOICE TO THE 40YEAROLD MR FARAH BUT HE HASN'T BEEN OFFERED A JOB YET MACY'S HAS BEEN WITHOUT A CHIEF MERCHANT THE CHIEF REPRESENTATIVE TO THE VENDORS SINCE THE MAY 13 RETIREMENT OF MARK S HANDLER MR HANDLER WAS FORMERLY MACY'S COCHAIRMAN AND COCHIEF EXECUTIVE OFFICER A JOB HE SHARED WITH MYRON ULLMAN WHO CONTINUES IN THOSE POSITIONS THE REPORTS ABOUT MR FARAH APPEARED YESTERDAY IN WOMEN'S WEAR DAILY MACY'S DECLINED TO COMMENT AND MR FARAH WHO IS ON VACATION COULDN'T BE REACHED FOR COMMENT SINCE JULY 1991 MR FARAH HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEW YORKBASED FEDERATED MERCHANDISING WHICH IS RESPONSIBLE FOR DEVELOPING AND IMPLEMENTING FEDERATED'S MERCHANDISE STRATEGIES FOR ITS DEPARTMENT STORES WHICH INCLUDE ABRAHAM & STRAUS BLOOMINGDALE'S AND RICH'S HE JOINED FEDERATED IN 1987 TO BECOME PRESIDENT OF RICH'S EARLIER THIS WEEK MACY'S APPOINTED TWO OTHER SENIOR EXECUTIVES MICHAEL STEINBERG 65 WHO WAS FORMERLY PRESIDENT OF MAY DEPARTMENT STORES CO'S FOLEY'S DIVISION IN HOUSTON WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MACY'S WEST DIVISION CONSISTING OF 51 MACY'S AND BULLOCK'S DEPARTMENT STORES MR STEINBERG FILLED A VACANCY LEFT BY DANIEL B FINKELSTEIN WHO RESIGNED IN JANUARY 9307300159 930730 TECHNOLOGY WANG LABORATORIES POSTS NARROWED LOSS FOR FISCAL 4TH PERIOD LOWELL MASS WANG LABORATORIES INC SAYING IT MAY EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS THIS FALL REPORTED A NARROWED FISCAL FOURTH QUARTER LOSS AS RESTRUCTURING CHARGES LESSENED FOR THE FOURTH QUARTER ENDED JUNE 30 THE COMPANY HAD A LOSS OF 438 MILLION OR 25 CENTS A SHARE AFTER RESTRUCTURING AND OTHER CHARGES TOTALING 371 MILLION THE YEAREARLIER QUARTER'S LOSS WAS 3337 MILLION OR 196 A SHARE INCLUDING RESTRUCTURING CHARGES OF 3067 MILLION EXCLUDING RESTRUCTURING AND OTHER CHARGES WANG'S FOURTHQUARTER OPERATING LOSS WAS 104 MILLION COMPARED WITH A YEAREARLIER OPERATING LOSS OF 342 MILLION REVENUE DROPPED ABOUT 49 TO 241 MILLION FROM 4736 MILLION WANG SAID ITS FOURTHQUARTER MARGINS IMPROVED SLIGHTLY COMPARED WITH THE YEAREARLIER FOURTH QUARTER AND THE FISCAL 1993 THIRD QUARTER THE COMPANY ADDED THAT IT HAS MADE SIGNIFICANT PROGRESS TOWARD ITS GOAL OF EMERGING FROM BANKRUPTCY PROCEEDINGS AS A SMALLER COMPANY FOCUSED ON SOFTWARE AND SERVICES WANG SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY PROCEEDINGS WITH REVENUE OF ABOUT 955 MILLION AND OPERATING PROFIT OF ABOUT 53 MILLION FOR THE 12MONTH PERIOD BEGINNING OCT 1 FOR FISCAL 1993 WANG POSTED A LOSS OF 1972 MILLION OR 115 A SHARE INCLUDING RESTRUCTURING CHARGES OF 922 MILLION AND OTHER REORGANIZATION CHARGES OF 351 MILLION OFFSET BY GAINS OF 252 MILLION IN FISCAL 1992 THE COMPANY HAD A LOSS OF 3566 MILLION OR 210 A SHARE INCLUDING RESTRUCTURING CHARGES OF 2773 MILLION OFFSET BY GAINS OF 33 MILLION 9307300158 930730 CANADA AGENCY AFFIRMS PUNITIVE DUTY ON LOWPRICED STEEL GOODS OF 5 NATIONS BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN INTERNATIONAL TRADE TRIBUNAL UPHELD A CANADIAN GOVERNMENT RULING THAT IMPOSED PUNITIVE DUTIES ON SOME IMPORTS OF LOWPRICED COLDROLLED STEEL PRODUCTS FROM THE US AND FOUR OTHER COUNTRIES THE AGENCY SAID IMPORTS OF THE SHEET STEEL FROM THE US GERMANY FRANCE ITALY AND BRITAIN INJURED CANADIAN STEEL PRODUCERS THROUGH DUMPING OR SELLING A PRODUCT IN A FOREIGN MARKET AT A PRICE LOWER THAN THE DOMESTIC PRICE COLDROLLED SHEET STEEL IS USED TO MAKE HOUSEHOLD APPLIANCES AUTO PARTS OFFICE FURNITURE AND OTHER PRODUCTS THE TRIBUNAL'S RULING WAS A VICTORY FOR CANADIAN STEEL PRODUCERS WHO LOST TWO PREVIOUS BIDS TO IMPOSE RETALIATORY LEVIES ON US STEELMAKERS THE TRADE TRIBUNAL THIS YEAR CLEARED US STEEL COMPANIES OF DUMPING CHARGES INVOLVING TWO OTHER STEEL PRODUCTS CARBON STEEL PLATE AND HOTROLLED CARBON STEEL SHEET THIS FINDING SUPPORTS EVERYTHING WE HAVE BEEN SAYING THROUGHOUT ALL OF THESE TRADE DISPUTES SAID JOHN MAYBERRY PRESIDENT AND CHIEF EXECUTIVE OF DOFASCO INC HAMILTON ONTARIO DOFASCO IS ONE OF THE COMPANIES THAT INITIATED THE COMPLAINT THE CANADIAN STEEL INDUSTRY IN A TITFORTAT MOVE INITIATED THE ANTIDUMPING ACTIONS LAST YEAR AFTER US STEEL PRODUCERS FILED UNFAIR TRADE COMPLAINTS AGAINST STEELMAKERS IN CANADA AND 19 OTHER COUNTRIES THIS WEEK THE US INTERNATIONAL TRADE COMMISSION CLEARED CANADIAN STEEL PRODUCERS OF SOME DUMPING CHARGES WHILE IT UPHELD OTHERS THE US RULING ALONG WITH A DECISION BY THE CANADIAN TRIBUNAL MAY MAKE THE US MORE WILLING TO CONSIDER STEELTRADE PACTS WITH CANADA AND OTHER COUNTRIES SAID JAY GORDON A STEEL ANALYST WITH CREDIFINANCE SECURITIES LTD OF TORONTO THE CANADIAN STEEL INDUSTRY AND THE CANADIAN GOVERNMENT HAVE LONG SOUGHT SUCH A PACT CANADIAN TRADE MINISTER TOM HOCKIN IS EXPECTED TO RAISE THE ISSUE THIS WEEK WITH US TRADE REPRESENTATIVE MICKEY KANTOR THE TWO ARE MEETING IN WASHINGTON TODAY WITH MEXICAN TRADE SECRETARY JAIME SERRA PUCHE ON THE ENVIRONMENTAL AND LABOR SIDE ACCORDS TO THE NORTH AMERICAN FREETRADE PACT AS A RESULT OF YESTERDAY'S RULING DUTIES OF AS MUCH AS 873 WILL BE IMPOSED ON STEEL IMPORTS FROM THE FIVE COUNTRIES THE US HAS ACCOUNTED FOR ABOUT THREEQUARTERS OF CANADA'S IMPORTS OF COLDROLLED SHEET WHICH IN RECENT YEARS HAVE TOTALED ALMOST 200000 TONS 9307300157 930730 MARKETING & MEDIA SEARS WELCOMES MAJOR CREDIT CARDS AFTER YEARS OF ACCEPTING ONLY ITS OWN BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO BOWING BELATEDLY TO CONSUMER WISHES IS DISCARDING ITS LONGTIME PRACTICE AGAINST ACCEPTING MAJOR BANK CARDS EFFECTIVE SUNDAY THE RETAIL GIANT'S CUSTOMERS WILL BE ABLE TO USE VISA MASTERCARD AND AMERICAN EXPRESS CARDS IN ALL 1800 SEARS OUTLETS THE EXTRA CONVENIENCE ONE SEARS HAD PREVIOUSLY BEEN UNWILLING TO EXTEND MEANS THAT WE WILL BE WELCOMING A LARGE NUMBER OF NEW CUSTOMERS TO OUR STORES THE COMPANY SAID SEARS WAS A PIONEER EARLY THIS CENTURY IN INTRODUCING INSTALLMENT CREDIT FOR USE BY ITS THEN LARGELY RURAL CLIENTELE BUT IN RECENT YEARS IT HAS BECOME THE LAST BIG MERCHANDISER TO SPURN OUTSIDE BANK CARDS INSTEAD IT SOUGHT TO MAXIMIZE PROFITS BY FORCING CREDIT CUSTOMERS TO USE EITHER THE SEARS CREDIT CARD OR THE DISCOVER CARD WHICH UNTIL LAST MONTH WAS OWNED BY A SEARS UNIT THAT POLICY ALIENATED MANY CONSUMERS WHO PERCEIVED THE PRACTICE AS A MAJOR INCONVENIENCE AS WELL AS AN ACT OF INSTITUTIONAL ARROGANCE BEFORE LAST NOVEMBER SEARS HAD CONDUCTED TWO LIMITED TESTS OF THE CONCEPT OF ACCEPTING MAJOR CARDS BUT IT CHOSE TO STICK WITH ITS CARD POLICY AFTER DECIDING EACH TIME THAT THE BENEFITS DIDN'T OUTWEIGH THE POTENTIAL DAMAGE TO ITS OWN CARD OPERATION'S PROFITABILITY LAST YEAR THE SEARSCHARGE OPERATION HAD REVENUE OF 283 BILLION MAINLY FROM FINANCE CHARGES THE INHOUSE CARD HAD EARNINGS BEFORE ACCOUNTING CHANGES OF 4106 MILLION BUT LATE LAST YEAR IN ONE OF THE FIRST MOVES BY ARTHUR C MARTINEZ RECENTLY INSTALLED AS HEAD OF THE MERCHANDISE GROUP THE COMPANY ESTABLISHED A SUBSTANTIAL TEST PROGRAM IN WHICH A TOTAL OF 140 RETAIL STORES AND SPECIALTY OUTLETS IN CERTAIN CITIES ACCEPTED MAJOR CARDS CUSTOMERS HAVE RESPONDED ENTHUSIASTICALLY TO THE PROGRAM MR MARTINEZ SAID WITH NEW CUSTOMERS SHOPPING OUR STORES AND INCREMENTAL SALES GAINS THE TEST CITIES INCLUDED DALLAS MIAMI SAN DIEGO AND DAYTON OHIO THERE ARE COSTS ASSOCIATED WITH ACCEPTING OUTSIDE CARDS SUCH AS FEES PAID TO THE CREDITCARD COMPANIES BUT A SEARS SPOKESMAN SAID THAT THE INCREMENTAL SALES INCREASES FROM THE LATEST TEST IN THE RANGE OF 3 TO 5 FOR THE FIRST TIME HAD A POSITIVE EFFECT ON THE BOTTOM LINE AT THE SAME TIME SEARS SAID AGGRESSIVE MARKETING EFFORTS HELPED KEEP ITS SEARSCHARGE CARD THE MOST POPULAR CREDITCARD CHOICE IN TEST STORES SEARSCHARGE WHICH THE COMPANY CALLED THE BIGGEST RETAIL CREDIT CARD IN THE US HAS ABOUT 27 MILLION ACTIVE ACCOUNTS 9307300156 930730 COMPUTERS IMMINENT DEBUT OF NEWTON MESSAGEPAD HAS APPLE CROWING AND CRITICS CARPING BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC'S MUCHDELAYED NEWTON MESSAGEPAD WILL BE INTRODUCED TO THE WORLD MONDAY IN BOSTON THE HANDHELD COMPUTER A SLEEK GREENBLACK BOX ABOUT THE SIZE OF A VIDEOCASSETTE WILL START SELLING IN LIMITED QUANTITIES NEXT WEEK AND WILL CHANGE THE WAY THE PUBLIC THINKS ABOUT COMPUTING SAYS GASTON BASTIENS APPLE'S PERSONALELECTRONICS CHIEF INDEED THE NEWTON PERFORMS AN IMPRESSIVE NUMBER OF FEATS FOR SUCH A SMALL PORTABLE MACHINE OPERATED WITH A STYLUS THAT TAPS OR WRITES ON A 4INCHBY3INCH SCREEN IT CAN RECOGNIZE HANDWRITING BETTER THAN ANY PREVIOUS COMPUTER AND CAN LINK WRITTEN COMMANDS TO STORED FILES OF INFORMATION SUCH AS ADDRESSES AND PHONE NUMBERS ONE VERSION CAN SEND FAXES AND ELECTRONIC MAIL OVER TELEPHONE LINES AND RECEIVE WIRELESS PAGER MESSAGES THERE'S NO DOUBT OUR BUSINESS VISION GOES WAY BEYOND HARDWARE SAYS MR BASTIENS AND BY SOME ACCOUNTS BEYOND REALITY ACCORDING TO MARKET RESEARCHERS THE NEWTON IS PERILOUSLY LATE TO MARKET AND AT 1200 TO 1500 FOR A FULLY EQUIPPED MODEL TOO EXPENSIVE TO BE A BIG HIT THE PRODUCT'S BASE PRICE IS 699 MOREOVER ANALYSTS SAY THAT THE NEWTON'S MESSAGING AND HANDWRITINGRECOGNITION FUNCTIONS HAVEN'T BEEN PERFECTED AND THAT THE PRODUCT LACKS TWO VITAL FEATURES THAT MOST FUTURE PERSONAL COMMUNICATORS WILL HAVE A CELLULAR PHONE AND A WIRELESS MODEM IT'S A VERY INTERESTING COMBINATION OF FEATURES AND FUNCTIONS THAT WON'T SELL WELL SAYS ANDREW SEYBOLD EDITOR OF OUTLOOK ON MOBILE COMPUTING AN INDUSTRY NEWSLETTER THE WORDS HAVE A FAMILIAR RING UNDER CHAIRMAN JOHN SCULLEY CRITICS COMPLAIN APPLE HAS TOO OFTEN BEEN LATE WITH KEY PRODUCTS SUCH AS A LOWCOST MACINTOSH AND BUNGLED THE INITIAL INTRODUCTION OF OTHERS SUCH AS ITS FIRST MAC PORTABLE ITS PAST SUCCESS HAS COME LARGELY FROM MILKING ITS MACINTOSH LINE'S TECHNOLOGICAL LEAD OVER COMPETITORS IN THE PAST TWO YEARS THAT EDGE HAS DISAPPEARED FIERCE PRICE CUTTING BY OTHER COMPUTER MAKERS LED TO A 310 MILLION RESTRUCTURING CHARGE IN ITS JUSTCOMPLETED FISCAL THIRD QUARTER MAINLY FOR LAYING OFF 16 OF ITS WORK FORCE EVEN BEFORE THE CHARGE APPLE WAS BARELY MAKING MONEY SHAREHOLDERS HAVE LOST 45 BILLION OF MARKET VALUE THIS YEAR AS APPLE'S STOCK PLUNGED JUST PRIOR TO THE BAD NEWS APPLE'S BOARD NAMED PRESIDENT MICHAEL SPINDLER TO REPLACE MR SCULLEY AS CHIEF EXECUTIVE OFFICER ALTHOUGH MR SCULLEY REMAINS CHAIRMAN APPLE HAS A TWOPRONGED SURVIVAL STRATEGY OF PUTTING ITS MACS ON MORE POWERFUL MICROPROCESSORS AND GENERATING 1 BILLION OF SALES FROM NEW BUSINESSES SUCH AS THE NEWTON A KEY PART OF THIS STRATEGY IS USING THE MAC AND THE NEWTON TO SELL OTHER SERVICES OVER AND OVER AGAIN FOR A FEE NEWTON USERS WILL BE ABLE TO USE NEWLY FORMED APPLE ONLINE SERVICES FOR ELECTRONIC MAIL DATABASES AND VARIOUS COMMERCIAL SERVICES APPLE HAS ALSO STARTED A PUBLISHING BUSINESS TO BE CALLED STARCORE THAT HAS ALREADY FORMED ALLIANCES WITH TIME WARNER INC RR DONNELLEY & SONS CO AND ADVANCE PUBLICATIONS INC'S RANDOM HOUSE UNIT TO PRODUCE DIGITAL VERSIONS OF TRAVEL GUIDES GAMES AND REFERENCE BOOKS ON ELECTRONIC CARDS CALLED PCMCIAS THAT WILL SLIDE INTO THE NEWTON THE WAY SPINDLER TALKS APPLE CAN'T JUST MAKE THE RAZORS SAYS AN APPLE INSIDER IT HAS TO MAKE THE BLADES BUT APPLE CRITICS WONDER ABOUT THE COMPANY'S ABILITY TO EXECUTE THE STRATEGY THEY ALLEGE THAT APPLE'S PAST MISTAKES REFLECT A LONGRUNNING DISARRAY WITHIN APPLE'S MANAGEMENT RANKS AS MR SCULLEY FREQUENTLY CHANGED COURSE AND REPLACED KEY PROJECT MANAGERS SOME DEALERS SAY APPLE IS STILL BUNGLING WHILE PRICE CUTS HAVE IGNITED DEMAND FOR ITS CENTRIS AND LC MODELS APPLE CAN'T DELIVER ENOUGH OF THEM AT THE SAME TIME DEALERS HAVE TROUBLE SELLING ILLCONCEIVED APPLE PRODUCTS SUCH AS THE DUO POWERBOOK SERIES THAT WORKS WITH AN EXPENSIVE DOCK A COLOR PRINTER AND THE COLOR CLASSIC WITH ITS TINY SCREEN ESTIMATES OF NEWTON'S FIRSTYEAR SALES RANGE FROM 50000 TO 150000 UNITS WHICH AT MOST WOULD GENERATE LESS THAN 1 OF APPLE'S TOTAL ANNUAL SALES ANALYSTS ARE ALMOST UNANIMOUS IN DECLARING THAT PERSONAL COMMUNICATORS IN GENERAL WON'T BE A BIG MARKET UNTIL 1995 AT THE EARLIEST WHEN WIRELESS MODEMS AND NETWORKS WILL BE MORE DEVELOPED AND LESS EXPENSIVE BY EARLY 1994 FEROCIOUS COMPETITORS WITH MORE POWERFUL COMMUNICATORS SUCH AS COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC WILL BE ON THE SCENE THE NEWTON HAS ONLY A SIXMONTH LEAD ON THOSE RIVAL MACHINES BECAUSE OF INFIGHTING AND SHIFTING OBJECTIVES AT APPLE IT WAS LAUNCHED BY A GROUP OF YOUNG HACKERS IN 1987 AS A SORT OF PORTABLE SUPERCOMPUTER THAT STRUNG TOGETHER FOUR POWERFUL MICROPROCESSORS MADE BY AMERICAN TELEPHONE & TELEGRAPH CO THE PRODUCT WHICH COULD RECOGNIZE HANDWRITING WOULD COST UP TO 8000 BUT THE NEWTON'S PATRON PRODUCTDEVELOPMENT CHIEF JEAN LOUIS GASSEE WAS SQUEEZED OUT BY MR SCULLEY AND REPLACED WITH LARRY TESSLER WHO TOLD THE NEWTON CREW THAT THE PRODUCT'S DESIGN WAS TERRIBLY FLAWED MR TESSLER TOSSED OUT THE AT&T CHIP IN FAVOR OF ANOTHER THEY STARTED OVER MEANWHILE ANOTHER TEAM HAD SPRUNG UP UNDER FUTURIST MARC PORAT PROMOTING A MORE MODEST PERSONAL COMMUNICATOR CODENAMED POCKET CRYSTAL WHICH WOULD DISPENSE WITH HANDWRITING RECOGNITION WHILE EMPHASIZING EASE OF COMMUNICATION UNDER MR SCULLEY'S DIRECTION THE TWO SQUADS MERGED THEIR PLANS IN 1990 WITH THE ORDER THAT THEY PRODUCE A PRODUCT IN TWO YEARS COSTING AROUND 2000 THE DECISION WAS ILLCONCEIVED THE TWO GROUPS FOUGHT AND EVENTUALLY SEPARATED WHAT'S MORE THE NEWTON GROUP CONTINUED TO FEUD WITH MR TESSLER AND FELL FURTHER BEHIND SCHEDULE IN THE SPRING OF 1991 MR SCULLEY CHANGED HIS MIND AND DECREED THAT THE NEWTON SHOULD COST 500 AN IMPOSSIBLE GOAL ACCORDING TO THE NEWTON GROUP MR TESSLER WAS REPLACED IN THE FALL OF 1992 BY MR BASTIENS IN MAY 1992 MR SCULLEY INTRODUCED THE NEWTON IN GRANDIOSE FASHION AT A PRESS CONFERENCE PRIOR TO A BIG TRADE SHOW ALTHOUGH NO PROTOTYPE YET EXISTED AMONG OTHER THINGS HE SAID THE NEWTON WAS THE BEGINNING OF THE BIGGEST THING APPLE HAS EVER DONE A MACHINE THAT WOULD LAUNCH THE AGE OF DIGITAL CONVERGENCE IN WHICH COMPUTING TELECOMMUNICATIONS ENTERTAINMENT PUBLISHING AND OTHER BUSINESSES COALESCE TO FORM THE MOTHER OF ALL INDUSTRIES HE ADDED THIS IS TREMENDOUSLY EXCITING FOR THE WORLD AND HE DEMONSTRATED THE PRODUCT AT THE TRADE SHOW BY WAVING AROUND AN EMPTY PLASTIC BOX AND SHOWING WHAT THE SOFTWARE COULD DO ON A MAC MR SCULLEY HAD CREATED EXPECTATIONS FOR THE NEWTON THAT THE TEAM HAD NO HOPE OF MEETING AT 1000 MUCH LESS 500 TECHNICAL PROBLEMS PARTICULARLY THE HANDWRITING RECOGNITION CONTINUED TO PLAGUE THE HACKERS WHO IN THE END FELL MONTHS BEHIND SCHEDULE AND TO REACH A BASE PRICE OF 699 THEY HAD TO STRIP OUT SOME FEATURES SETTLE FOR IMPERFECT COMPROMISES ON OTHERS AND OFFER THE NEWTON IN PARTS THAT BASE MACHINE WON'T INCLUDE A WIRED MODEM OR SOFTWARE FOR LINKING UP WITH OTHER COMPUTERS THOSE ESSENTIAL FEATURES WILL UP THE PRICE TO 900 EXTRA MEMORY AND A PAGER THAT SLIDES INTO THE MACHINE FOR ONEWAY RECEPTION OF WIRELESS MESSAGES WILL EACH COST AN ADDITIONAL 300 IF HOOKED TO A TELEPHONE LINE THE NEWTON CAN SEND FAXES BUT CAN'T RECEIVE THEM IT HAS NO CELLULAR PHONE AND CAN'T ACCESS WIRELESS NETWORKS THE ELECTRONICMAIL MESSAGES CAN ONLY BE SENT OVER A PROPRIETARY SYSTEM THAT DOESN'T EXIST YET MR SEYBOLD THE EDITOR OF THE MOBILE COMPUTING NEWSLETTER SAYS USING A PEN TO SEND EMAIL IS TOO CUMBERSOME ANYWAY SO THE MOST SUCCESSFUL PERSONAL COMMUNICATORS FOR MESSAGING WILL HAVE KEYBOARDS AND THE HANDWRITING RECOGNITION CAN'T BE TRUSTED OUR LINE IS THAT NO ONE IS GOING TO WRITE THE GREAT AMERICAN BUSINESS LETTER ON THIS LET ALONE THE GREAT AMERICAN NOVEL SAYS BRUCE STEPHEN AN ANALYST FOR INTERNATIONAL DATA CORP A MARKETRESEARCH CONCERN THE NEWTON ISN'T A PERSONAL COMMUNICATOR BUT AN INFORMATION ORGANIZER ON STEROIDS SAYS MR STEPHEN THAT IS FAR FROM WHAT MR SCULLEY PROMISED BUT MR BASTIENS SAYS NEW AND IMPROVED MODELS ARE FORTHCOMING AND TOUTS THE NEW SERVICES THAT WILL BECOME AVAILABLE SUCH AS APPLE'S ONLINE NETWORK AND ELECTRONIC BOOKS BUT THESE SERVICES ARE TOO EXPENSIVE RIGHT NOW FOR MASS CONSUMPTION APPLE CURRENTLY CHARGES 12 AN HOUR FOR ONLINE SERVICE THE ELECTRONIC BOOKS ARE EXPECTED TO COST 50 AND UP THE BIGGEST MARKETING OBSTACLE OF ALL ACCORDING TO MARKET OBSERVERS SUCH AS MR SEYBOLD AND RICHARD SHAFFER ANOTHER NEWSLETTER EDITOR IS MR SCULLEY'S HYPE BECAUSE OF DISAPPOINTED EXPECTATIONS THERE WILL ALMOST CERTAINLY BE A BACKLASH AGAINST THE NEWTON PREDICTS MR SHAFFER WE WILL GO FROM OVEREXCITEMENT ABOUT THE NEWTON TO TRASHING THE NEWTON MICHAEL WOFSEY CONTRIBUTED TO THIS ARTICLE 9307300155 930730 BUSINESS BRIEF MERCANTILE BANCORP COMPANY ARRANGES PURCHASE OF METRO BANCORP OF IOWA MERCANTILE BANCORP OF ST LOUIS SAID IT AGREED TO ACQUIRE METRO BANCORP OF WATERLOO IOWA FOR STOCK WITH A CURRENT INDICATED VALUE OF ABOUT 55 MILLION CLOSELY HELD METRO IS THE HOLDING COMPANY FOR WATERLOO SAVINGS BANK WHICH HAD ASSES AT JUNE 30 OF 378 MILLION MERCANTILE WHICH AS OF MARCH 30 HAD 253 MILLION COMMON SHARES OUTSTANDING WILL ISSUE ABOUT 1120000 SHARES TO EFFECT THE TRANSACTION WHICH WILL MARK ITS ENTRY INTO IOWA THE MERGER IS SUBJECT TO APPROVAL BY METRO'S STOCKHOLDERS AS WELL AS BY REGULATORS 9307300154 930730 MUTUAL FUNDS SALES OF MUTUAL FUNDS STAY HOT THIS SUMMER BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CASH KEEPS POURING INTO MUTUAL FUNDS DEFYING THE DOLDRUMS THAT USUALLY AFFLICT FUND SALES IN SUMMERTIME INVESTORS POURED A HEFTY 92 BILLION INTO STOCK FUNDS IN JUNE THE INVESTMENT COMPANY INSTITUTE REPORTED ALTHOUGH THAT DIDN'T MATCH THE MONTHLY RECORD OF 118 BILLION SET DURING THE INDIVIDUALRETIREMENTACCOUNT SEASON IN MARCH IT WAS SLIGHTLY HIGHER THAN MAY'S INFLOW AND NEARLY DOUBLE THE JUNE 1992 LEVEL IF ANYTHING THE PACE ACCELERATED IN JULY SEVERAL FUND GROUPS REPORTED THE NATION'S LARGEST FUND COMPANY FIDELITY INVESTMENTS SAID JULY IS TURNING OUT TO BE ITS BEST SALES MONTH EVER DRIVEN BY STRONG CASH FLOW INTO STOCK FUNDS IT SURPRISED ALL OF US SAID NEAL LITVACK A FIDELITY EXECUTIVE VICE PRESIDENT WE WERE EXPECTING THE USUAL SEASONAL DOWNTURN LOW INTEREST RATES CONTINUE TO DRIVE INVESTORS OUT OF BANK DEPOSITS MANY FUND GROUPS ARE SEEING STRONG INFLOWS INTO FUNDS THAT INVEST IN HIGHDIVIDEND STOCKS BALANCED FUNDS WHICH INVEST IN BOTH STOCKS AND BONDS ARE THE BESTSELLING TYPE OF FUND FOR JULY AT FIDELITY AND ALSO AT VANGUARD GROUP THE SECONDLARGEST FUND COMPLEX WHILE INVESTORS MAY BE CHOOSING CONSERVATIVE FUNDS MANY OF THEM ARE INCREASING THEIR RISKS IN SEARCH OF HIGHER RETURNS AT THIS POINT THE PEOPLE THAT ARE SWITCHING FROM CERTIFICATES OF DEPOSIT OR MONEY MARKET FUNDS ARE THE ONES THAT HAVE HELD OUT THE LONGEST AND ARE THEREFORE THE MOST CONSERVATIVE SAID JOHN KEEFE OF KEEFE WORLDWIDE SERVICES A FUND CONSULTING FIRM IN NEW YORK CITY BOND FUNDS CONTINUED A PATTERN OF HEAVY CASH FLOWS THIS YEAR ATTRACTING 105 BILLION IN CASH IN JUNE ACCORDING TO THE ICI THE TRADE GROUP FOR THE FUND INDUSTRY THE STATISTICS FOR BOND FUNDS INCLUDE AT LEAST SOME MONEY GOING TO STOCKS BECAUSE IT ALSO INCLUDES INFLOWS INTO BALANCED FUNDS INVESTING IN STOCKS AND BONDS THE ICI'S DATA ON CASH FLOW INCLUDE NEW SALES OF FUNDS MINUS WITHDRAWALS BY DEPARTING SHAREHOLDERS PLUS THE NET RESULT OF SWITCHING AMONG FUNDS IN THE SAME GROUP REINVESTED DIVIDENDS ARE EXCLUDED THE ICI ALSO REPORTED THAT CASH HOLDINGS OF STOCK FUNDS DROPPED A TICK IN JUNE DESPITE THE HEAVY INFLOW OF CASH STOCK FUNDS HELD 91 OF THEIR ASSETS IN CASH COMPARED WITH 92 IN MAY MOST FUND MANAGERS CONSIDER THEMSELVES TO BE FULLY INVESTED WITH ABOUT 5 OF THEIR PORTFOLIOS IN CASH SO THE CASH IN FUNDS' COFFERS REPRESENTS UNTAPPED BUYING POWER THAT COULD PUSH STOCKS HIGHER NOT ALL THE CASH FLOODING INTO FUNDS WAS HEADED FOR US SECURITIES INTERNATIONAL STOCK FUNDS ARE ATTRACTING SHARPLY HIGHER CASH FLOWS AT SCUDDER STEVENS & CLARK INC AND T ROWE PRICE ASSOCIATES INC ON THE HEELS OF BIG RETURNS THIS YEAR IN MANY FOREIGN MARKETS EXECUTIVES AT THOSE FIRMS WERE AT A LOSS TO EXPLAIN WHY SUMMER VACATIONS HAVEN'T SLOWED DOWN FUND CASH FLOWS MAYBE THE SPREAD OF CELLULAR PHONES IS RESPONSIBLE SAID STEVEN NORWITZ A VICE PRESIDENT AT T ROWE PRICE KEMPER CORP'S KEMPER FINANCIAL SERVICES MARSH & MCLENNAN'S PUTNAM INVESTMENTS VANGUARD AND OTHER GROUPS REPORTED HIGHER CASH FLOWS INTO INTERNATIONAL FUNDS IN JULY AS WELL IN JUNE STOCK AND BOND FUNDS INVESTING OVERSEAS TOOK IN ONE OF EVERY EIGHT DOLLARS GOING INTO MUTUAL FUNDS SAID AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT A NEW YORK CITY CONSULTING FIRM ENERGY FUNDS SAW AN OUTFLOW OF MONEY IN JULY ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF FIRM THAT TRACKS WEEKLY MUTUALFUND FLOWS MANY OF THESE FUNDS HAD PRICE DECLINES IN THE MONTH MONEY RUSHING INTO FUNDS CAME FROM MORE SOURCES THAN SIMPLY LOWYIELDING BANK DEPOSITS AND MONEY MARKET FUNDS THERE'S A LOT COMING IN FROM PENSIONS AND PROFITSHARING AND 401K GROUPS RICHARD B FISHER CHAIRMAN OF FEDERATED SECURITIES CORP SAID MUTUAL FUNDS HAVE BECOME ACCEPTED BY INSTITUTIONS BOND FUND INVESTORS TENDED TO GO WITH CONSERVATIVE CHOICES IN JULY FAVORING THOSE THAT INVEST IN SHORTTERM OR INTERMEDIATEMATURITY BONDS WHEN INTEREST RATES RISE BOND PRICES DECLINE BUT SHORTTERM BONDS WOULD HAVE LESS OF A PRICE DECLINE THAN LONGTERM BONDS SHOULD INTEREST RATES RISE BROADLY NOT EVERYONE WENT THE CONSERVATIVE ROUTE HIGH YIELD JUNKBOND FUNDS WHICH INVEST IN THE SPECULATIVE DEBT OF COMPANIES RATED BELOW INVESTMENT GRADE CONTINUED TO SELL WELL FOLLOWING MORE THAN TWO YEARS OF STRONG RETURNS OPPENHEIMER MANAGEMENT CORP SAID JULY WAS A RECORD MONTH FOR FUND SALES FOLLOWING THE FIRM'S PRIOR RECORD SET IN JUNE DUE LARGELY TO STRONG CASH FLOWS INTO ITS BOND FUNDS SOME OF OPPENHEIMER'S GAINS WERE BECAUSE OF NEW PRICING STRUCTURES FOR ITS FUNDS SOME FUND GROUPS REPORTED PARTICULARLY STRONG SALES OF INTERMEDIATETERM MUNICIPAL BOND FUNDS SALES OF VARIABLE ANNUITIES WERE HIGHER IN JUNE THE ICI REPORTED ANNUITIES ARE NOW SELLING IN A MONTH WHAT THEY USED TO SELL SOME YEARS BACK IN A YEAR SAID MR NACHMANY OF STRATEGIC INSIGHT A HIGHER PERCENTAGE OF INVESTORS PLANNED TO BUY STOCKS AND STOCK FUNDS IN JULY DESPITE BECOMING MORE PESSIMISTIC ABOUT THE ECONOMY ACCORDING TO A UNIVERSITY OF MICHIGAN SURVEY OF INVESTORS CONDUCTED ON BEHALF OF FIDELITY PEOPLE ARE BEARISH IN GENERAL BUT PEOPLE THINK THAT THE STOCK MARKET IS THE BEST INVESTMENT THAT'S AVAILABLE SAID FIDELITY'S MR LITVACK 9307300153 930730 BURLINGTON NORTHERN SIGNS PACT FORT WORTH TEXAS BURLINGTON NORTHERN INC SAID IT SIGNED A CONTRACT WITH UNION SWITCH & SIGNAL INC TO BUY A RAILROAD DISPATCHING CONTROL SYSTEM TO BE INSTALLED HERE BY 1995 A SPOKESMAN FOR BURLINGTON NORTHERN THE NATION'S LARGEST RAILROAD SAID THE CONTRACT'S VALUE IS WELL IN EXCESS OF 10 MILLION THE CONTROL SYSTEM WILL BE PART OF BURLINGTON NORTHERN'S PLAN TO CONSOLIDATE ALL ITS TRAIN DISPATCHING FUNCTIONS IN ITS NEW NETWORK CONTROL CENTRAL IN FORT WORTH UNION SWITCH & SIGNAL IS A RAILROAD SIGNALING AND CONTROL SYSTEMS COMPANY THAT IS OWNED BY ANSALDO SPA A TRANSPORTATION ENERGY AND INDUSTRIAL SYSTEMS COMPANY BASED IN GENOA ITALY 9307300152 930730 WHO'S NEWS KAUFMAN & BROAD'S CHAIRMAN LOS ANGELES KAUFMAN & BROAD HOME CORP SAID ELI BROAD 60 YEARS OLD IS STEPPING DOWN AS THE COMPANY'S CHAIRMAN EFFECTIVE AUG 31 MR BROAD A COFOUNDER OF THE COMPANY WILL REMAIN ON THE BOARD AS FOUNDERCHAIRMAN AND CHAIRMAN OF KAUFMAN & BROAD'S EXECUTIVE COMMITTEE HE WILL BE SUCCEEDED BY BRUCE KARATZ 47 WHO'S THE HOMEBUILDER'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BROAD WHO ALSO IS CHAIRMAN AND CEO OF LOS ANGELESBASED SUNAMERICA INC SAID THE MOVE WAS A LOGICAL EXTENSION OF THE CHANGES IN MY BUSINESS LIFE KAUFMAN & BROAD BUILDS SINGLEFAMILY HOMES IN CALIFORNIA NEVADA TORONTO AND FRANCE 9307300151 930730 SWISS PRODUCER PRICE INDEX BERN SWITZERLAND SWITZERLAND'S PRODUCER PRICE INDEX ROSE 02 IN JUNE FROM MAY WHILE THE COUNTRY'S IMPORT PRICE INDEX DECLINED 05 IN THE SAME PERIOD THE FEDERAL STATISTICS OFFICE SAID CALCULATED TOGETHER THE TWO INDEXES WERE UNCHANGED IN JUNE COMPARED WITH MAY AND WERE UP 01 FROM JUNE A YEAR AGO THE GOVERNMENT SAID 9307300150 930730 WYLE LABORATORIES REPURCHASE EL SEGUNDO CALIF WYLE LABORATORIES SAID ITS BOARD AUTHORIZED A STOCK BUYBACK OF UP TO 15 MILLION COMMON SHARES TO BE PURCHASED FROM TIME TO TIME ON THE OPEN MARKET WYLE SAID THE AUTHORIZATION REPLACES A ONEMILLIONSHARE BUYBACK PROGRAM APPROVED BY THE BOARD IN 1989 THE SHARES WOULD BE AVAILABLE FOR VARIOUS CORPORATE PURPOSES AND THERE IS NO TIME LIMIT FOR THE REPURCHASE THE COMPANY SAID WYLE DISTRIBUTES SEMICONDUCTOR AND COMPUTER PARTS AND DOES TESTING AND ENGINEERING WORK FOR THE NUCLEARPOWER INDUSTRY DEFENSE CONTRACTORS AND AEROSPACE FIRMS THE COMPANY HAS 122 MILLION SHARES OUTSTANDING 9307300149 930730 BUSINESS BRIEF CABOT POSTS INCREASE OF 12 IN EARNINGS FOR FISCAL 3RD QUARTER BOSTON CABOT CORP CITING STRONG RESULTS FROM ITS ENERGY BUSINESS AND PART OF ITS CHEMICALS BUSINESS SAID FISCAL THIRDQUARTER PROFIT ROSE 12 THE COMPANY ALSO SAID IT MAY REPORT SPECIAL CHARGES FOR THE FISCAL FOURTH QUARTER BECAUSE OF COSTS ASSOCIATED WITH THE POSSIBLE SHUTDOWN OF A PLANT AND OTHER EXPENSES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CABOT CLOSED AT 5050 UP 150 THE ENERGY AND SPECIALTY CHEMICALS CONCERN SAID THIRDQUARTER EARNINGS WERE 184 MILLION OR 94 CENTS A SHARE COMPARED WITH YEAREARLIER EARNINGS OF 164 MILLION OR 84 CENTS A SHARE SALES ROSE 13 TO 4188 MILLION FROM 371 MILLION CABOT SAID ITS ENERGY UNIT WHICH USUALLY ISN'T PROFITABLE IN THE THIRD QUARTER'S WARMER MONTHS HAD AN OPERATING PROFIT OF 33 MILLION FOR THE QUARTER BECAUSE OF HIGHER SALES OF LIQUIFIED NATURAL GAS THE COMPANY ADDED THAT ITS SPECIALTY CHEMICALS AND MATERIALS GROUP POSTED STRONGER VOLUMES AND MARGINS IN NORTH AMERICA AND LATIN AMERICA THAN IN THE YEARAGO QUARTER OFFSET BY PERSISTENT WEAKNESS IN EUROPE AND CONTINUING DIFFICULTIES IN JAPAN CABOT SAID THAT DUE TO THE DEPRESSED BUSINESS ENVIRONMENT IN EUROPE IT MAY CLOSE SEVERAL PRODUCTION LINES OR AN ENTIRE PLANT THERE POSSIBLY RESULTING IN AN AFTERTAX RESTRUCTURING CHARGE OF UP TO 30 MILLION AT THE END OF FISCAL 1993 CABOT ALSO SAID IT MAY POST AN ESTIMATED FOURTHQUARTER CHARGE OF 45 MILLION BECAUSE OF AN ACCOUNTING CHANGE RELATED TO POSTRETIREMENT BENEFITS 9307300148 930730 INTERNATIONAL AS ELITE ITALIANS ARE DRIVEN TO SUICIDE THEORIES OF DISGRACE AND DRAMA ARISE BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IN AMERICA YOU GO TO JAIL AND YOU WRITE A BEST SELLER YOU LOSE A FORTUNE AS MICHAEL MILKEN DID AND YOU GO INTO SOCIAL WORK GET BANNED FROM BASEBALL LIKE PETE ROSE AND YOU END UP WITH YOUR OWN RADIO SHOW FROM DISCREDITED POLITICIANS TO DISGRACED BALLPLAYERS AMERICAN PUBLIC FIGURES HAVE AN AMAZING KNACK FOR STAGING COMEBACKS BUT THIS IS ITALY FOR ITALIANS IT ISN'T SURPRISING THAT FORMER FERRUZZI GROUP CHAIRMAN RAUL GARDINI WOULD PUT A BULLET TO HIS HEAD JUST AFTER HIS BUTLER SERVED HIM BREAKFAST IN BED RATHER THAN FACE BEING HUMILIATED IN PUBLIC MR GARDINI WASN'T THE ONLY ONE NINE OTHER POWERFUL FIGURES IMPLICATED IN ITALY'S WIDENING CORRUPTION SCANDAL HAVE CHOSEN SUICIDE YESTERDAY AN 11TH PRISONER ANTONINO GIOE AN ALLEGED MAFIA MEMBER WHO IS SUSPECTED OF PLOTTING TO KILL ROMAN MAGISTRATES HANGED HIMSELF IN A ROME PRISON WHAT IS IT IN THE ITALIAN CHARACTER THAT DRIVES SUCH POWERFUL MEN TO SUICIDE I SUPPOSE YOU COULD RELATE THESE SUICIDES TO THE ITALIAN IDEA OF LA BELLA FIGURA THE PREOCCUPATION WITH CUTTING THE RIGHT IMAGE SAYS ENRICO TACCHI A PROFESSOR OF SOCIAL RESEARCH AT THE CATHOLIC UNIVERSITY HERE IT IS ONLY A HYPOTHESIS BUT ONE THAT FITS THE CURRENT SITUATION HUGELY SUCCESSFUL BUSINESSMEN IN ITALY RECEIVE THE SAME LEVEL OF ADULATION AS MOVIE STARS MR GARDINI WITH HIS GOOD LOOKS AND GREAT TAN HIS VENICE PALACE ARGENTINE HACIENDA AND AMERICA'S CUP RACING YACHT WAS AN IDEAL EXAMPLE BUT THERE IS SOMETHING EVEN MORE FUNDAMENTAL SAYS NADIO DELAI HEAD OF THE RESEARCH FOUNDATION CENSIS IN ROME THERE IS A CRUCIAL DIFFERENCE BETWEEN THE US AND ITALY PERSONAL FAILURE IS MUCH LESS ACCEPTED HERE THE IDEA OF TRY AGAIN FIGHT YOUR WAY BACK IS MUCH LESS COMMON FOR US WE'RE A MUCH LESS MOBILE CULTURE AND WE CAN'T JUST MOVE TO ANOTHER TOWN AND START OVER FOR THE ITALIANS THE NOTION OF SUICIDE AS AN HONORABLE WAY OUT DATES BACK TO ANTIQUITY ANCIENT ROMANS CONSIDERED SUICIDE A GESTURE OF LIBERTY AND DIGNITY THE PREROGATIVE OF THE GREAT AND BRAVE MORE OFTEN IT WAS THE CHOICE OF THE DISGRACED THE EMPEROR NERO THREW HIMSELF ON A SWORD AS HIS REALM CRUMBLED AROUND HIM TODAY MORE THAN TWICE AS MANY ITALIAN MEN KILL THEMSELVES THAN DO ITALIAN WOMEN A TWOYEAROLD SURVEY BY ISTAT THE GOVERNMENT STATISTICS BUREAU SHOWS SUICIDE IS MORE COMMON AMONG PROFESSIONAL MEN THAN OTHER WORKERS THE ROMAN CATHOLIC CHURCH USUALLY HAS REFUSED A RELIGIOUS BURIAL TO THOSE WHO TOOK THEIR OWN LIVES YET THE CATHOLIC CHURCH DIDN'T CONDEMN MR GARDINI'S ACT HE HAD A FUNERAL IN A CATHOLIC CHURCH IN RAVENNA THE VATICAN ISSUED A STATEMENT BLURRING THE LINES OF WHAT THE CHURCH'S POSITION CURRENTLY IS THE DELIBERATE SUICIDE THE VATICAN INTONED COMES TO FRUITION IN AN ERA OF NO VALUES THE CATHOLIC CURIA IN MILAN FELT COMPELLED TO JUSTIFY THE CATHOLIC BURIAL OF GABRIELE CAGLIARI EXPRESIDENT OF THE STATEOWNED ENERGY CONGLOMERATE ENI WHO SUFFOCATED HIMSELF WITH A PLASTIC BAG IN PRISON AFTER BEING ARRESTED IN THE CORRUPTION INVESTIGATION NO ONE COULD EVER PENETRATE THE DESPERATION BORDERING ON FOLLY THAT DRIVES A MAN TO SUICIDE EACH CASE IS UNIQUE THIS IS WHY OUR BEHAVIOR MUST INCLUDE THE SUSPENSION OF JUDGMENT MILAN'S CARDINAL SAID AS MUCH AS ITALIANS LIKE DRAMATIC ENDINGS THEY LOVE INTRIGUE EVEN MORE THAT IS WHY IN CAFE CONVERSATIONS SOME PEOPLE AREN'T BUYING THE PREMISE THAT ALL OF THE SUICIDES WERE IN FACT THAT EVEN THE POLICE SPECULATE THAT ANOTHER MAJOR FIGURE WHO SUPPOSEDLY KILLED HIMSELF SERGIO CASTELLARI FORMERLY A SENIOR GOVERNMENT OFFICIAL WAS REALLY THE VICTIM OF FOUL PLAY THIS DESPITE THE FACT THAT MR CASTELLARI LEFT A SERIES OF LETTERS AND WAS FOUND ON A HILL NEAR HIS HOUSE HOLDING A HANDGUN WITH A BULLET IN HIS HEAD THE EVIDENCE FOR MURDER AN ANALYSIS OF A CIGAR BUTT AT THE SCENE DIDN'T MATCH MR CASTELLARI'S HE OFTEN TOOK A CIGAR AND BOTTLE OF WHISKEY TO THE SITE THEN THERE IS THE MATTER OF SOME MISSING FILES AND AN UNEXPLAINED MEETING BETWEEN MR CASTELLARI AND FORMER PRIME MINISTER GIULIO ANDREOTTI EARLIER THE SAME DAY MR ANDREOTTI IS UNDER INVESTIGATION IN SEVERAL OTHER CASES AS FAR AS THE DEATH OF ALLEGED MAFIA MEMBER MR GIOE IS CONCERNED THE SKEPTICS ALREADY ARE BUZZING AS THE NEWS OF HIS HANGING IN PRISON COMES ACROSS A TELEVISION SCREEN A HOTELIER SHAKES HIS HEAD AND SNEERS THEY MUST HAVE BEEN SOME STRONG SHOE LACES UNLESS OF COURSE HE HAD HELP 9307300147 930730 KMART TOY VENDORS ARE ASKED TO SELL ON CONSIGNMENT BY CHRISTINA DUFF AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL IN AN UNUSUALLY AGGRESSIVE MOVE THAT COULD ALIENATE SUPPLIERS KMART CORP IS ASKING SOME OF ITS TOY VENDORS TO HELP SHOULDER THE FINANCIAL BURDEN OF UNSOLD INVENTORY A SPOKESWOMAN FOR THE SECONDLARGEST US RETAILER SAID KMART BUYERS HAVE ASKED ABOUT 20 OF ITS 200 TOY SUPPLIERS TO SELL THEIR GOODS TO KMART ON CONSIGNMENT THAT MEANS KMART WOULDN'T HAVE TO PAY FOR THE TOYS UNTIL THEY APPEARED ON STORE SHELVES THE VENDORS MEANWHILE WOULD BE FORCED TO KEEP THE INVENTORY ON THEIR BOOKS WHILE IT SITS IN KMART WAREHOUSES THE SPOKESWOMAN STRESSED THAT SELLING ON CONSIGNMENT IS NOT A CONDITION OF DOING BUSINESS WITH KMART BUT RATHER AN OPTION BOTH PARTIES MUST AGREE TO HOWEVER ONE TOY SUPPLIER WHO SPOKE ON THE CONDITION OF ANONYMITY SAID KMART IS TELLING ME THAT IF I DON'T SIGN I DON'T DO BUSINESS WITH THEM TOYS ACCOUNT FOR ABOUT 9 OF KMART'S SALES WHICH TOTALED 377 BILLION LAST YEAR THE RETAIL INDUSTRY HAS ALWAYS SQUEEZED ITS SUPPLIERS TO GET THE BEST DEALS AND ASKING VENDORS TO SELL ON CONSIGNMENT IS NOT UNKNOWN IN DIFFICULT ECONOMIC PERIODS BUT KMART'S MOVE INDICATES A CERTAIN DESPERATION RETAIL EXPERTS SAID BECAUSE THE COMPANY SEEMS WILLING TO ALIENATE THE INDUSTRY TO SHORE UP ITS OWN BOTTOM LINE THE TROY MICH COMPANY'S PROFITS HAVE DECLINED FOR SEVERAL QUARTERS AND KMART HAS WARNED THAT EARNINGS LIKELY WILL FALL BELOW FISCAL 1993 LEVELS IN THE YEAR ENDED JAN 30 THE COMPANY HAD NET INCOME OF 941 MILLION OR 206 A SHARE KMART RECENTLY STRETCHED OUT TERMS OF ITS PAYMENT TO APPAREL VENDORS TO 60 DAYS FROM 30 DAYS AND THE SPOKESWOMAN SAID SHE IS SURE THE CONSIGNMENT OPTION IS BEING DISCUSSED IN SOME OTHER LINES BUT DIDN'T ELABORATE FOR MANY VENDORS THOUGH SELLING ON CONSIGNMENT IS THE WORST OF ALL POSSIBLE WORLDS IF THEY REFUSE THEY RISK LOSING THE BUSINESS BUT IF THEY GO ALONG PAYMENTS FROM THE RETAILER ARE DELAYED AND SOMETIMES DIMINISHED THE SUPPLIERS ALSO MUST SWALLOW THE COST OF POORSELLING INVENTORY THAT NEVER LEAVES THE DISTRIBUTION CENTER TYPICALLY IT'S THE RETAILER THAT TAKES RESPONSIBILITY FOR SLOWSELLERS OUR MEMBERSHIP HAS POLITELY DECLINED TO GO ALONG SAID DAVID MILLER EXECUTIVE DIRECTOR OF THE TOY MANUFACTURERS ASSOCIATION ADDED ALAN HASSENFELD CHAIRMAN OF HASBRO INC THE US'S LARGEST TOY COMPANY CONSIGNMENT IS ABSOLUTELY NOT IN MY VOCABULARY THE KMART SPOKESWOMAN ASSERTED THAT THE RETAILER HAS PROPOSED CONSIGNMENT AGREEMENTS ONLY TO ITS BIGGEST TOY VENDORS WHICH INCLUDE HASBRO MATTEL INC AND TYCO TOYS INC SHE SAID AT LEAST ONE COMPANY HAS AGREED TO CONSIGNMENT TERMS BUT WOULDN'T ELABORATE TOY ANALYSTS SAID THAT SO FAR KMART IS THE ONLY BIG RETAILER THEY KNOW OF THAT IS SEEKING CONSIGNMENT AGREEMENTS BUT IF THE VENDORS GIVE IN ANALYSTS WARNED THAT KMART'S COMPETITORS LIKELY WOULD DEMAND EQUALLY FAVORABLE TERMS HOWEVER MICHAEL GOLDSTEIN VICE CHAIRMAN FOR TOYS R US INC SAID THE COMPANY'S NEVER EVEN CONSIDERED A CONSIGNMENT AGREEMENT AND I DON'T SEE WHY WE EVER SHOULD OFFICIALS AT WALMART STORES INC WEREN'T AVAILABLE TO COMMENT 9307300146 930730 PROGRESSIVE CORP SELLS SHARES MAYFIELD HEIGHTS OHIO PROGRESSIVE CORP AN INSURANCE HOLDING COMPANY COMPLETED THE SALE OF 4950000 COMMON SHARES FOR 37 A SHARE BEAR STEARNS & CO AND FIRST BOSTON CORP WERE LEAD UNDERWRITERS THE OFFERING INCLUDED 450000 COMMON SHARES EXERCISED UNDER THE UNDERWRITERS' OVERALLOTMENT OPTION 9307300145 930730 INTERNATIONAL PORTUGAL'S JOBLESS RATE RISES MADRID PORTUGAL'S UNEMPLOYMENT RATE ROSE TO 53 OF THE WORK FORCE IN THE SECOND QUARTER FROM 51 IN THE FIRST QUARTER THE PORTUGUESE NATIONAL STATISTICS INSTITUTE SAID IN THE SECOND QUARTER OF 1992 UNEMPLOYMENT STOOD AT 39 9307300144 930730 BROKERS AT MERRILL AREN'T DESK JOCKEYS WHEN ASTRIDE HOGS' WILL HARLEYDAVIDSON BENEFIT TO GET INTO THIS BIKER GANG YOU NEED A LICENSE TO TRADE BY JONATHAN MAHLER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THEY ROAR INTO TOWN WRAPPED IN LEATHER HOGS RUMBLING AND QUOTRON MACHINES LEFT IN THE DUST THEY AREN'T THE HELL'S ANGELS THEY'RE THE LYNCH MOB A GANG OF ARIZONABASED MERRILL LYNCH & CO STOCKBROKERS WITH A PASSION FOR HARLEY DAVIDSONS THESE BRIEFCASETOTING BIKERS PEDDLE STOCKS AND BONDS ALL WEEK BUT WHEN THE WEEKEND ROLLS AROUND THE 23 MEN AND THREE WOMEN YIELD TO THE SPIRIT OF THE OPEN ROAD IT ALLOWS US TO DO SOMETHING THAT IS ABSOLUTELY AND COMPLETELY REMOVED FROM WHAT WE DO HERE SAYS CRAIG SCOOTER GRUBB ONE OF THE GROUP'S FOUNDERS WHO SPORTS A GRIM REAPER TATTOO ON HIS CALF IT ALL BEGAN WHEN FOUR MOTORCYCLERIDING BROKERS FROM TUCSON ARIZ DECIDED TO DEVELOP A LOGO AND MEMBERSHIP CERTIFICATE IT WAS MORE OF A FLUKE THAN ANYTHING ELSE SCOOTER SAYS THERE WERE TWO COMMON THREADS BIKES AND MERRILL LYNCH OF COURSE GAINING MEMBERSHIP TO THIS GROUP OF WHEELERDEALERS IS GRUELING YOU HAVE TO SUFFER THROUGH THE INFAMOUS SERIES 7 STOCKBROKERS EXAM AND LAND A JOB AT THE INVESTMENT COMPANY BUT SOME MERRILL BROKERS DON'T HEAR THE CALL OF THE HIGHWAY THEY JUST WANT TO OWN ONE OF THE GROUP'S STYLISH JACKETS THERE ARE PROBABLY ABOUT 50 TO 60 JACKETS OUT THERE SAYS MARC LOCK OR DR LOCK ANOTHER FOUNDING MEMBER THE MOB SENT A COMPLIMENTARY ONE ALONG WITH A MEMBERSHIP CERTIFICATE TO WILLIAM SCHREYER MERRILL'S RECENTLY RETIRED CHAIRMAN WHAT WILL THE LONGTIME HEAD OF ONE OF THE NATION'S LARGEST BROKERAGE HOUSES DO WITH A BIKER'S JACKET I'M SURE HE WON'T WEAR IT AND IT PROBABLY WON'T EVEN MAKE IT INTO HIS DEN SCOOTER CONCEDES THE ARM OF THE JACKET READS BROKERS ON BIKES EMBROIDERED ON THE BACK IS THE GROUP'S LOGO A STEER'S SKULL IN FRONT OF THE TRADITIONAL HARLEYDAVIDSON WINGS BUT MAKE NO MISTAKE SCOOTER HASTENS TO ADD THE LOGO ISN'T INTENDED TO CONJURE UP IMAGES OF THE MERRILL LYNCH BULL THE STEER SKULL IS JUST A COMMON DECORATION HERE IN THE DESERT HE SAYS HE ALSO DISMISSES THE NOTION THAT THE GROUP'S NAME HOLDS ANY RACIST CONNOTATIONS LYNCH MOBS WERE PROMINENT HERE IN THE WEST FOR CATTLE ROBBERS AND THIEVES IT WAS AN OBVIOUS CHOICE THESE WELLHEELED WEEKEND WARRIORS TRY TO GATHER AT LEAST ONCE A MONTH FOR A RIDE IN SEPTEMBER THEY ARE TAKING AN EIGHTHOUR TRIP TO ALBUQUERQUE WHERE THEY PLAN TO VISIT THE LOCAL MERRILL OFFICE OVERALL OFFICE REACTION TO THE GROUP HAS BEEN POSITIVE BUT DR LOCK STILL FEARS THAT SOME PEOPLE ARE MISSING THE POINT MOTORCYCLES CAN CARRY A STIGMA HE SAID BUT WE'RE JUST A BUNCH OF GUYS WHO WORK TOGETHER AND LIKE TO RIDE BIKES HOWEVER DON'T EXPECT NOISY ROAD RALLIES TO REPLACE CORPORATE GOLF OUTINGS ANY TIME SOON A MERRILL SPOKESWOMAN POINTS OUT THAT THE INVESTMENT COMPANY DOESN'T SANCTION THE MOB 9307300143 930730 WHO'S NEWS BERLITZ INTERNATIONAL INC BERLITZ INTERNATIONAL INC PRINCETON NJ THE LANGUAGEINSTRUCTION CONCERN PROMOTED THREE EXECUTIVES AS PART OF A REORGANIZATION SUSUMU KOJIMA 50 YEARS OLD SENIOR VICE PRESIDENT OF CORPORATE PLANNING AND A DIRECTOR WAS NAMED EXECUTIVE VICE PRESIDENT CORPORATE PLANNING ROBERT MINSKY 48 VICE PRESIDENT AND ALSO A DIRECTOR WAS NAMED EXECUTIVE VICE PRESIDENT AND CONTINUES AS CHIEF FINANCIAL OFFICER MANUEL FERNANDEZ 56 VICE PRESIDENT OF EUROPEAN OPERATIONS BECOMES A DIRECTOR AND EXECUTIVE VICE PRESIDENT OF THE WORLDWIDE LANGUAGE INSTRUCTION DIVISION MEANWHILE HIROMASA YOKOI 52 VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT SUCCEEDING ELIO BOCCITTO 50 WHO'S RETIRING 9307300142 930730 CT2 CORDLESS PHONE HITS PARIS RUNWAYS AS VOGUE ACCESSORY WHAT MANY CALLED A FAUX PAS IN NEW GADGETRY COULD BE A MARKETING PLUM IN FRANCE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE LATEST FASHION STATEMENT IN THIS CITY OF CHIC IS OF ALL THINGS A NEW CORDLESS TELEPHONE FRENCH FASHION HOUSE PIERRE BALMAIN HAD ITS MODELS PRANCE DOWN THE CATWALK CARRYING THE PHONES AS ACCESSORIES TO ITS SPRING COLLECTION ANOTHER HOUSE HERMES DESIGNED A LEATHER CARRYING CASE FOR THEM ALL AROUND PARIS THOUSANDS OF DISCREET GREEN WHITE AND BLUE STICKERS ADVERTISING THEIR PRESENCE SUDDENLY HAVE APPEARED ON LAMP POSTS AND TRAFFIC LIGHTS THE CORDLESS TELEPHONES DESIGNED BY MOTOROLA INC AND RUN BY FRANCE TELECOM THE STATE PHONE COMPANY ARE CALLED BIBOP THE FRENCH SPELLING FOR THE AMERICAN JAZZ STYLE AND THE CLEVER MARKETING JOB BEHIND THEM STANDS OUT AS A MODEL IN THE TELECOMMUNICATIONS INDUSTRY OF HOW TO PEDDLE NEW GADGETS INDUSTRY ANALYSTS SAY FRENCH CONSUMERS HAVE SNAPPED UP MORE THAN 20000 OF THE NEW CORDLESS PHONES DESPITE THE HEFTY PRICE OF 1890 FRENCH FRANCS 323 PLUS TELEPHONESERVICE FEES THAT'S ABOUT HOW MANY PHONES FRANCE TELECOM EXPECTED TO SELL ALL YEARNEVERMIND IN THE FIRST THREE MONTHS THE PHONES HAVE BEEN ON SALE THEY PITCHED IT RIGHT FROM THE MARKETING PERSPECTIVE SAYS ANALYST GAIL KIRBY OF BIS STRATEGIC DECISIONS A CONSULTINGFIRM UNIT OF NEW YORKBASED NYNEX CORP THEY HAD A HIGHLY PUBLIC LAUNCH THEY STARTED IN DENSELY POPULATED PARIS AND THEY PITCHED IT AS A LIFESTYLE PRODUCT RATHER THAN AS WHAT IT REALLY IS JUST ANOTHER TYPE OF TELEPHONE THE FRENCH EXPERIENCE ALSO SHOWS THAT THERE'S LIFE AFTER DEATH FOR A PROBLEMATIC NEW TECHNOLOGY THE SYSTEM IS KNOWN IN THE INDUSTRY AS CT2 FOR CORDLESS TELEPHONE'S SECOND GENERATION AND IT HAS BEEN CALLED AN UNMITIGATED DISASTER IN OTHER EUROPEAN COUNTRIES IT'S ALSO BEING TEST MARKETED NOW ALONG WITH A FEW OTHER NEW MOBILETELEPHONE TECHNOLOGIES IN BOSTON WASHINGTON AND OTHER MAJOR US AND CANADIAN CITIES ASIDE FROM IN PARIS ONLY IN HONG KONG HAS THE SYSTEM PROVED ITSELF A CLEAR WINNER WITH CONSUMERS THE PROBLEM WITH CT2 IS THAT MARKETERS HAVE A TOUGH TIME DEFINING WHAT IT IS OR WHY ANYBODY WOULD WANT IT INVENTED BY BRITISH ELECTRONICS COMPANY FERRANTI INTERNATIONAL PLC CT2 USES PALMSIZED HANDSETS TO RADIO TO PHONECOMPANY ANTENNAS SCATTERED AROUND A CITY UNLIKE WITH POWERFUL CELLULAR SYSTEMS THOUGH YOU HAVE TO BE VERY CLOSE TO AN ANTENNA TO TRANSMIT AND YOU HAVE TO STAY PUT ONCE YOU START TALKING THE SYSTEM CAN'T FOLLOW YOU AND THOUGH THE FRENCH HAVE IMPROVED ON IT THE BASIC CT2 PHONE ONLY DIALS OUT IT DOESN'T RECEIVE CALLS THAT MAKES IT MORE LIKE A FANCY PAY PHONE THAN A BUDGET CELLULAR SYSTEM IT FLOPPED IN BRITAIN IN 1989 THE GOVERNMENT LICENSED FOUR COMPETING CT2 OPERATORS AND WITHIN A FEW YEARS THEY HAD ANNIHILATED ONE ANOTHER WITH A JUMBLE OF INCOMPATIBLE SYSTEMS AND CONFLICTING MARKETING MESSAGES ONLY ONE COMPANY A UNIT OF HONG KONGBASED HUTCHISON WHAMPOA LTD STILL RUNS A BRITISH CT2 SERVICE CALLED RABBIT A HUTCHISON SPOKESMAN DRYLY SAYS I DON'T THINK ANYONE HERE IS COMPLAINING THAT IT HAS BEEN A GREAT SUCCESS AFTER SEEING THE UK DEBACLE THE GERMAN PHONE COMPANY SCRAPPED ITS PLANNED SYSTEM CALLED BIRDIE AND THE DUTCH PHONE COMPANY'S GREENPOINT CT2 SYSTEM CAME CLOSE TO FAILURE LAST YEARRESCUED ONLY BY A 20 PRICE CUT AND A NEW MARKETING STRATEGY BUT IN PARIS CT2 HAD AN UNINTENDED ADVANTAGE SAYS BIS'S MS KIRBY FRANCE HAS BEEN SO SLOW TO EXPAND ITS CONVENTIONAL CELLULAR TELEPHONE NETWORK THAT THERE'S A HUGE DEMAND FOR ANY KIND OF MOBILE TELEPHONE SHE WARNS THAT BIBOP SALES MAY SLUMP AS CELLULAR GAINS POPULARITY FRANCE TELECOM'S STRATEGY FOR BIBOP ALSO BENEFITED FROM STUDYING THE FAILURES ABROAD IT PROMOTES ITS SYSTEM AS SOMETHING ENTIRELY NEW NEITHER A CELLULAR NOR CONVENTIONAL CORDLESS DON'T CALL IT A MOBILE TELEPHONE THAT'S AN ERROR SAYS FRANCOISE QUELEN A MARKETING EXECUTIVE OF FRANCE TELECOM'S MOBILEPHONE DIVISION INSTEAD THE COMPANY CALLS IT THE FIRSTGENERATION POCKET PHONE AFTER TEST MARKETING THE COMPANY TARGETED STATUSCONSCIOUS URBAN PROFESSIONALS AND PEOPLE WHOSE JOBS KEEP THEM ON THE MOVE AROUND THE CITY IT LITTERED PARIS AND STRASBOURG THE ONLY FRENCH CITIES OFFERING THE SERVICE WITH 3500 ANTENNAS IT ADDED A FEATURE PERMITTING LIMITED TWOWAY COMMUNICATION SUBSCRIBERS PUSH A BUTTON TO TELL THE COMPANY'S COMPUTERS WHERE THEY ARE AND HAVE INCOMING CALLS RELAYED TO THEM IT SET THE 1890FRANC PRICE AT ONETHIRD THAT OF A TYPICAL CELLULAR TELEPHONE THE SERVICE FEES AT 545 FRANCS 932 A MONTH PLUS 82 CENTIMES 14 CENTS A MINUTE ON TOP OF NORMAL PHONE TARIFFS ARE ABOUT ONESEVENTH THOSE OF CELLULAR IN PARIS IT'S FOCUSING ITS MARKETING ON COOL THE BIBOP NAME IS FASHIONABLE IN JAZZLOVING PARIS AND THE SYSTEM WAS LAUNCHED AT A JAZZ CONCERT ATTENDED BY 800 PARISIAN GLITTERATI AND JOURNALISTS THE MOTOROLA HANDSETS ARE DESIGNED TO BE CONSUMER COVETABLES SMALL SLIM AND BLACK WITH GREEN AND BLUE RACING STRIPES AND ROUNDED CORNERS TWO COMPETING FRENCHDESIGNED MODELS ALSO ARE STARTING TO APPEAR ON THE MARKET IT'S TEAMING WITH APPLE COMPUTER INC TO SELL POWERBOP A PORTABLE PC WITH A BIBOP MODEM AND IT'S KEEPING THE AD SLOGANS ON THE UPBEAT STEP OUT ON THE TOWN WITH BIBOP READS ONE 9307300141 930730 ECONOMY ECONOMY GREW AT A WEAK PACE IN 2ND QUARTER ANNUAL RATE OF 16 FAILED TO MEET THE ESTIMATES OF GREENSPAN AND OTHERS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US ECONOMY GREW AT A SLUGGISH 16 ANNUAL RATE IN THE SECOND QUARTER ACCORDING TO THE COMMERCE DEPARTMENT THE DISHEARTENING GROWTH CAME ON TOP OF AN EVEN WEAKER FIRST QUARTER WHEN GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES MADE IN THE US EXPANDED AT A TINY 07 RATE MOST ANALYSTS INCLUDING FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAD ESTIMATED THAT THE ECONOMY GREW AT CLOSER TO A 25 PACE IN THE SECOND QUARTER THE RECOVERY IS STUCK IN A SLOWGROWTH MODE SAID GARY CIMINERO CHIEF ECONOMIST FOR FLEET FINANCIAL GROUP IN PROVIDENCE RECOVERY AND EXPANSION THOSE WORDS DON'T MEAN WHAT THEY USED TO BUT THE NEWS MAY NOT BE AS BAD AS IT SEEMS FINAL SALES WERE STRONG AS INVENTORIES GREW AT A MUCH SLOWER PACE THAN IN THE FIRST QUARTER CONSUMER SPENDING ALSO GAINED MOMENTUM AND BUSINESSES CONTINUED TO INVEST HEAVILY IN CAPITAL EQUIPMENT CONSUMER SPENDING ROSE AT AN ENCOURAGING 38 CLIP COMPARED WITH A GAIN OF JUST 08 IN THE FIRST QUARTER AMERICANS SPENT FAR MORE ON CARS AND FURNITURE IN THE SECOND QUARTER THAN THEY DID IN THE QUARTER BEFORE SPENDING ON FOOD AND CLOTHING ALSO INCREASED THE PROBLEM WAS THAT THE INCREASED SPENDING DID LITTLE TO SPUR PRODUCTION THAT'S BECAUSE INVENTORIES HAD GROWN SO MUCH IN THE FIRST QUARTER THAT MANUFACTURERS WERE ABLE TO KEEP UP WITH THE INCREASED DEMAND LARGELY BY SELLING WHAT WAS ON THEIR SHELVES EXCLUDING INVENTORIES GROWTH IN THE SECOND QUARTER WOULD HAVE BEEN 37 IN CONTRAST GROSS DOMESTIC PRODUCT WOULD HAVE DECLINED IN THE FIRST QUARTER IF INVENTORIES WEREN'T COUNTED COMPANIES ADDED ONLY 82 BILLION IN STOCKPILES IN THE SECOND QUARTER COMPARED WITH 335 BILLION IN THE FIRST THE GOOD NEWS IS THAT LEAN INVENTORIES TEND TO MEAN MORE PRODUCTION WHEN DEMAND INCREASES THAT COULD LEAD TO HIGHER EMPLOYMENT AND STRONGER ECONOMIC GROWTH LATER THE EXHAUSTION OF THE INVENTORY CYCLE AND OTHER FACTORS MAY SET THE STAGE FOR STRONGER EXPANSION IN THE SECOND HALF SAID GORDON RICHARDS ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS COMMERCE DEPARTMENT ECONOMISTS ARE FORCED TO ESTIMATE INVENTORIES FROM SKIMPY DATA SO THESE FIGURES ARE SUBJECT TO EVEN GREATER REVISIONS THAN OTHER COMPONENTS OF GDP FROM MR GREENSPAN'S PREDICTIONS IT'S CLEAR THAT THE FED'S BEST ESTIMATE IS THAT INVENTORIES GREW SOMEWHAT MORE IN THE SECOND QUARTER THAN THE COMMERCE DEPARTMENT'S ESTIMATE TREASURY SECRETARY LLOYD BENTSEN SAID HE STILL IS QUITE OPTIMISTIC THE ECONOMY WILL GROW AT A 3 RATE IN THE SECOND HALF SECONDQUARTER GROWTH HE SAID IS NOT AS MUCH AS WE HAD HOPED FOR BUT IT IS CERTAINLY A SUBSTANTIAL IMPROVEMENT OVER THE FIRST QUARTER HE SAID ADDING YOU'RE SEEING A RUNDOWN ON INVENTORIES WHICH WILL HELP US ON GROWTH IN THE SECOND HALF ANALYSTS SAID ONE KEY TO CONTINUED GROWTH IS WHAT IS HAPPENING TO SECTORS OF THE ECONOMY THAT ARE SENSITIVE TO INTEREST RATES BUSINESSES INCREASED THEIR INVESTMENT IN CAPITAL EQUIPMENT AT A 133 RATE IN THE SECOND QUARTER AFTER A 131 PACE IN THE FIRST QUARTER AUTO SALES WERE ALSO UP A LOT THE HOUSING SECTOR HOWEVER WAS LACKLUSTER RESIDENTIAL FIXED INVESTMENT FELL AT A 95 RATE IN THE SECOND QUARTER LAURA TYSON WHO HEADS THE COUNCIL OF ECONOMIC ADVISERS SAID ALL THESE SECTORS ARE VERY CRUCIAL TO A RECOVERY THAT DEPENDS ON LOW INTEREST RATES MS TYSON ADDED THAT ALTHOUGH AUTO AND CAPITALEQUIPMENT SALES WERE STRONG PRESUMABLY BECAUSE OF LOW INTEREST RATES IT ISN'T CLEAR WHY THE HOUSING SECTOR WAS SO WEAK BECAUSE OF THE LOWEST INTEREST RATES IN 25 YEARS WE WOULD HAVE EXPECTED MORE STRENGTH IN THE HOUSING SECTOR SHE SAID THE INFLATION PICTURE IN THE REPORT WAS ENCOURAGING THE FIXEDWEIGHT PRICE INDEX INCREASED AT A 26 ANNUAL RATE COMPARED WITH A 43 RATE IN THE FIRST QUARTER THE COMMERCE DEPARTMENT'S ESTIMATES ARE BASED ON INCOMPLETE INFORMATION AND WILL BE REVISED TWICE IN THE COMING MONTHS SEPARATELY THE LABOR DEPARTMENT SAID THE NUMBER OF INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE 43000 LAST WEEK TO 394000 THE DEPARTMENT SAID THE INCREASE MAY HAVE REFLECTED THE RECENT FLOODING IN THE MIDWEST AND SHUTDOWNS IN THE AUTOMOBILE INDUSTRY THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A BETTER MEASURE OF LABORMARKET CONDITIONS ROSE TO 351500 FROM 337750 THE PREVIOUS WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE FIRST QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1237 FROM 1229 IN THE PREVIOUS QUARTER 9307300140 930730 WHO'S NEWS MCDONNELL DOUGLAS CO MCDONNELL DOUGLAS CO ST LOUIS WILLIAM M AUSTIN 47 YEARS OLD BECAME VICE PRESIDENT AND GENERAL MANAGERBUSINESS MANAGEMENT FOR THE EASTERN OPERATIONS OF THE MCDONNELL DOUGLAS AEROSPACE UNIT HE SWITCHES POSITIONS WITH JAMES F PALMER 43 WHO BECOMES VICE PRESIDENTTREASURER OF THE PARENT THE AIRCRAFT MAKER AND DEFENSE CONTRACTOR SAID THE EXCHANGE IS PART OF AN ONGOING STRATEGY TO ENHANCE LEADERSHIP AND MANAGEMENT STRENGTH OF THE CORPORATION 9307300139 930730 WHO'S NEWS SPRINT CORP SPRINT CORP KANSAS CITY MO DOMINIQUE JACQUET 50 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT AND GENERAL MANAGER OF OPERATIONS FOR SPRINT INTERNATIONAL A UNIT OF THIS TELECOMMUNICATIONS COMPANY MR JACQUET HAD BEEN PRESIDENT OF TROPICAL RADIO TELECOMMUNICATIONS INC IN WASHINGTON DC 9307300138 930730 WHO'S NEWS ZARING HOMES INC ZARING HOMES INC CINCINNATI DANIEL W GEEDING 51 YEARS OLD DEAN OF THE COLLEGE OF BUSINESS ADMINISTRATION AT XAVIER UNIVERSITY WAS ELECTED A DIRECTOR OF THIS BUILDER OF SINGLEFAMILY HOMES IN THE CINCINNATI AND NASHVILLE TENN METROPOLITAN AREAS THE ELECTION INCREASES THE COMPANY'S BOARD TO SIX MEMBERS 9307300137 930730 FREEH'S APPROVAL BY SENATE AS FBI CHIEF SEEMS SURE AFTER CONFIRMATION HEARING BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE APPROVAL OF LOUIS FREEH AS FEDERAL BUREAU OF INVESTIGATION DIRECTOR SEEMS A QUICK AND EASY CERTAINTY FOLLOWING HIS CONFIRMATION HEARING SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL AND THE RANKING REPUBLICAN ORRIN HATCH OF UTAH BOTH PREDICTED MR FREEH A FEDERAL DISTRICT JUDGE IN MANHATTAN WOULD BE CONFIRMED AND ON THE JOB BEFORE CONGRESS ADJOURNS NEXT WEEK FOR ITS AUGUST RECESS MR FREEH'S POPULARITY WAS UNDERSCORED WHEN FIVE SENATORS INSTEAD OF THE USUAL TWO FROM A NOMINEE'S HOME STATE SAT AT HIS TABLE TO INTRODUCE HIM TO THE COMMITTEE SEN HATCH TOOK ADVANTAGE OF THE FREEH HEARING TO BLAST THE CLINTON ADMINISTRATION FOR ITS HANDLING OF SUSPECTED FINANCIAL IRREGULARITIES IN THE WHITE HOUSE TRAVEL OFFICE THE FBI WAS CALLED IN TO INVESTIGATE OFFICE EMPLOYEES IN A MANNER THAT WAS WIDELY CRITICIZED AS IMPROPERLY INVOLVING THE BUREAU IN POLITICAL AFFAIRS MR HATCH SAID THE ADMINISTRATION BREACHED THE INDEPENDENCE OF THE FBI BY USING IT IN A DESPERATE EFFORT TO COVER UP CRONYISM HE REPEATED HIS CALL FOR A JUDICIARY COMMITTEE PROBE INTO THE TRAVEL OFFICE AFFAIR ADDING IT HAS BECOME CLEAR THAT A CONGRESS CONTROLLED BY DEMOCRATS WILL NOT CHECK THE ABUSES OF A DEMOCRATIC PRESIDENT IN RESPONSE TO THE CONCERNS VOICED BY SEN HATCH AND SEVERAL OTHER COMMITTEE MEMBERS MR FREEH SAID THAT AS DIRECTOR HE WOULDN'T ISSUE PUBLIC STATEMENTS ON POLITICAL ISSUES SUCH AS GUN CONTROL AND WHILE HE REFUSED TO GIVE HIS PERSONAL OPINION ON THE SUBJECT HE CLEARLY SIGNALED HIS APPROVAL OF THE BRADY BILL WHICH CALLS FOR A CRIMINAL RECORD CHECK ON HANDGUN PURCHASERS AS WELL AS PROPOSALS TO CURB THE USE OF ASSAULT WEAPONS WHEN HE PROMISED THE COMMITTEE STRENUOUS AND COMPLETE ENFORCEMENT OF THE STRONGEST LAW YOU PASS WHILE ACKNOWLEDGING THE FBI DOES NOT DEAL WITH THE ROOT CAUSES OF CRIME MR FREEH TALKED AT LENGTH ABOUT CRIME PREVENTION CRIME PREVENTION IS LIKE HEALTH PREVENTION HE SAID IF WE DON'T INOCULATE CHILDREN AGAINST DISEASES WE HAVE EPIDEMICS THAT TAKE A TERRIBLE TOLL PREVENTION IS ONE OF THE MOST VALUABLE TOOLS IN THE ANTICRIME ARSENAL AND WE MUST USE IT TO HELP REDUCE THE PANDEMIC OF CRIME THAT NOW EXISTS 9307300136 930730 PUBLISHING PUBLISHER FAULTED IN KENNEDY BOOK FLAP BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE ALL THE PUBLICITY SURROUNDING THE LAST BROTHER BOOKSELLER ROXANNE COADY HAS SOLD JUST ONE COPY OF THE NEW BOOK ABOUT EDWARD M KENNEDY IF ANYTHING SHE SAYS THE ALLEGATIONS THAT AUTHOR JOE MCGINNISS LIFTED MUCH OF HIS MATERIAL FROM WILLIAM MANCHESTER'S 1967 THE DEATH OF A PRESIDENT WILL HELP SPUR INTEREST IN PAPERBACK SALES OF THAT BOOK INSTEAD ALL THE CONTROVERSY ABOUT THE LAST BROTHER' HAS LEFT THE IMPRESSION THAT THERE ISN'T MUCH NEW AND IT ISN'T WELL WRITTEN SAYS MS COADY WHOSE STORE IS IN MADISON CONN THE PRESS SAYS THERE'S A LOT TAKEN FROM THE MANCHESTER BOOK WHICH WAS TERRIFIC SO I'M PUTTING UP A SPECIAL DISPLAY OF THAT DESPITE CONVENTIONAL WISDOM THAT CONTROVERSY ALWAYS SELLS BOOKS THERE ARE EARLY SIGNS THAT THE LAST BROTHER HAS BEEN TARNISHED BY A WAVE OF NEGATIVE PUBLICITY THE BOOK JUST BEGAN ARRIVING IN EAST COAST STORES EARLY THIS WEEK AND THERE IS STILL A CHANCE THAT IT MAY LAND BRIEFLY ON BESTSELLER LISTS BUT BOOKSELLERS SAY IT ISN'T FLYING OUT OF STORES SO FAR AND SOME VETERAN PUBLISHERS PREDICT IT WON'T BE A SUCCESS WHILE AUTHOR MCGINNISS IS PARTLY TO BLAME FOR THE PUBLIC BEATING HE'S TAKING CRITICS SAY HIS PUBLISHER THE SIMON & SCHUSTER UNIT OF PARAMOUNT COMMUNICATIONS INC HAS MISHANDLED THE BOOK FROM THE START MAKING A BAD SITUATION WORSE THE BROUHAHA ALSO RAISES TROUBLING QUESTIONS FOR THE PUBLISHING INDUSTRY ABOUT ITS RESPONSIBILITY TO ENSURE A BOOK'S VERACITY AND ORIGINALITY EVERY PUBLISHER IS LEARNING A LESSON FROM WHAT SIMON & SCHUSTER HAS DONE ALWAYS BE UPFRONT WITH THE READERS SAYS HAROLD EVANS PUBLISHER OF RIVAL RANDOM HOUSE A UNIT OF ADVANCE PUBLICATIONS INC PUBLISHERS AT OTHER HOUSES SAY THEY DON'T THINK THE BOOK WOULD HAVE COME UNDER NEARLY AS MUCH CRITICISM IF SIMON & SCHUSTER HAD RELEASED IT WITH A FULL EXPLANATION OF THE AUTHOR'S INTENTIONS AND TECHNIQUE FROM THE START IN MAY WHEN THE FIRST SECTION OF THE BOOK WAS HANDED OUT AS AN ADVANCEREADING COPY AT THE AMERICAN BOOKSELLERS ASSOCIATION CONVENTION IT CARRIED A BRIEF NOTE ON THE COPYRIGHT PAGE THAT SAID SOME THOUGHTS AND DIALOGUE WERE CREATED BY THE AUTHOR BASED ON RESEARCH AND HIS KNOWLEDGE OF THE RELEVANT PEOPLE PLACES AND EVENTS JACK ROMANOS PRESIDENT OF PARAMOUNT PUBLISHING'S CONSUMERBOOKS DIVISION WHICH INCLUDES SIMON & SCHUSTER SAYS HE NOW REGARDS AS UNFORTUNATE THE DECISION TO INCLUDE THE DISCLAIMER WITH THE EARLY EXCERPTS PARTLY BECAUSE THE CONTROVERSY TOOK PLACE WITHOUT THE BOOK BEING AVAILABLE TO SPEAK FOR ITSELF HE ADDS WE STILL BELIEVE THIS IS A VERY STRONG BOOK AND SO DOES EVERYBODY ELSE ASSOCIATED WITH IT INCLUDING THE LITERARY GUILD WHICH CHOSE IT FOR A SELECTION AND VANITY FAIR WHICH IS PUBLISHING AN EXCERPT ALTHOUGH INITIAL REACTION TO THE EXCERPT WAS LARGELY POSITIVE AS A GOOD POPCORN READ BOOKSELLERS SAY A SCANDAL WAS BORN AS HISTORIANS INCLUDING MR MANCHESTER GOT COPIES OF THE BOOK THROUGH SEN KENNEDY'S MINIONS ACCORDING TO THE AUTHOR AND STARTED SHOUTING PLAGIARISM TO THE PRESS MR MANCHESTER HAS SAID HE FOUND MORE THAN 100 EXAMPLES WHERE MR MCGINNISS LIFTED HIS WORDS ALMOST INTACT AND HE HAS THREATENED TO SUE MR MCGINNISS SAYS HE NEVER INTENDED TO WRITE A SCHOLARLY BIOGRAPHY AND DIDN'T DO ANYTHING ILLEGAL OR UNPRECEDENTED IN USING PREVIOUS WORKS HE SAYS HIS AUTHOR'S NOTE WAS MISINTERPRETED BUT LARGELY BLAMES HIMSELF I WROTE THE ONEPARAGRAPH DISCLAIMER WITH THE HELP OF A SIMON & SCHUSTER LAWYER IN AN EFFORT TO SHOW I WAS USING AN UNORTHODOX METHOD SAYS MR MCGINNISS IN A WAY I'M GLAD ABOUT THE CONTROVERSY BECAUSE I'M MUCH HAPPIER WITH THE LONGER AUTHOR'S NOTE THAT IS NOW INCLUDED IN THE BOOK IN THE LONGER NOTE MR MCGINNISS SAYS THE BOOK IS A RUMINATION DESIGNED TO CREATE EMPATHY FOR SEN KENNEDY HE SAYS ALL OF THE QUOTES THAT HE USED IN THE BOOK WERE TAKEN FROM OTHER BOOKS AND ARTICLES ALTHOUGH HE SAYS HIS PUBLISHER HAS BEEN TOTALLY SUPPORTIVE THROUGH THE ORDEAL SIMON & SCHUSTER HASN'T ALWAYS APPEARED THAT WAY TO OUTSIDERS WITH A RANGE OF EXECUTIVES ANSWERING MEDIA QUESTIONS ABOUT THE BOOK IT BEGAN TO LOOK AS THOUGH THE LAST BROTHER WAS A HOT POTATO NOBODY WANTED TO HANDLE AND WITH THE FLIPFLOPPING ON THE AUTHOR'S NOTE THE PUBLISHER GAVE THE APPEARANCE THAT IT WAS ITSELF CONFUSED OR DEFENSIVE ABOUT THE NATURE OF THE BOOK THIS WHOLE THING SUGGESTS SOME KIND OF BREAKDOWN BETWEEN AUTHOR AND PUBLISHER FOR THIS TO HAVE HAPPENED THIS WAY SAYS JOHN STERLING HOUGHTON MIFFLIN CO'S EDITOR IN CHIEF FOR ADULTCONSUMER BOOKS WHATEVER THE AUTHOR'S FAULT HERE I THINK THE PUBLISHER LEFT HIM OUT TO DRY WHEN I SAW THE FIRST AUTHOR'S NOTE I WAS OUTRAGED EVERYBODY KNOWS YOU DON'T WRITE A SIGNIFICANT NONFICTION BOOK WITHOUT EXPLAINING METHODOLOGY AND SOURCES I THINK THE ACCUSATIONS OF COPYRIGHT INFRINGEMENT WOULD HAVE REARED THEIR HEADS ANYHOW SAYS HOWARD KAMINSKY CHAIRMAN OF HEARST CORP'S TRADE BOOK GROUP BUT THE PUBLISHER HAS MADE THE CONTROVERSY LAST LONGER AND DRAWN MORE ATTENTION TO IT WITH THE CAVEAT THEY ISSUED AT FIRST ALTHOUGH THE EARLY REACTION IN THE PUBLISHING COMMUNITY WAS THAT THE MCGINNISS FLAP WOULD MAKE THE LAST BROTHER A SURE BESTSELLER THAT ASSESSMENT IS ALREADY BEING SECONDGUESSED THAT MAY BE PARTLY BECAUSE OF A FLURRY OF NASTY REVIEWS ALTHOUGH SUCH THINGS HAVEN'T COOLED DEMAND FOR OTHER HOT BOOKS CONTROVERSY BY ITSELF DOESN'T GUARANTEE BIG SALES SAYS THOMAS MCCORMACK CHAIRMAN OF ST MARTIN'S PRESS A UNIT OF MACMILLAN LTD CONTROVERSY ABOUT THE CONTENTS OF A BOOK CAN HELP ENORMOUSLY AS CAN SERIOUS ATTEMPTS TO STOP A BOOK'S PUBLICATION BUT CONTROVERSY OVER THE CREDIBILITY OF AN AUTHOR CAN HURT THAT MAY BE THE CASE THIS TIME ERIK BARNUM MANAGER OF SIDNEY KRAMER BOOKS IN WASHINGTON DC SAYS HE HAS SOLD JUST ONE COPY OF THE LAST BROTHER EVEN THOUGH IT IS DISPLAYED IN THE WINDOW PERRY HABERMAN MANAGER OF NEW YORK'S MADISON AVENUE BOOKSHOP SAYS WE'VE SOLD ABOUT 15 COPIES THIS WEEK BUT WITH A BOOK THAT'S REALLY HOT WE SELL 25 COPIES A DAY I THINK IT'S PRETTY MUCH DEAD IN THE WATER EVEN AT THE BIG CHAINS WHERE BLOCKBUSTER BOOKS TEND TO MOVE QUICKLY BECAUSE THEY'RE DISCOUNTED THE LAST BROTHER ISN'T AN EARLY FAVORITE IT'S A LACKLUSTER PERFORMANCE SO FAR SAYS A SPOKESWOMAN FOR BARNES & NOBLE INC IT'S IN ABOUT HALF OUR STORES NOW I CAN'T TELL IF IT'S NOT MOVING MUCH BECAUSE PEOPLE HAVE HAD ENOUGH ABOUT THE KENNEDYS OR IF THEY JUST DON'T REALIZE THE BOOK IS OUT YET THE PUBLISHER SAYS IT ALREADY HAS SHIPPED MORE THAN 250000 COPIES OF THE BOOK TO STORES BUT BOOKSTORES ARE CUSTOMARILY ALLOWED TO RETURN WHATEVER DOESN'T SELL THE ULTIMATE JURY IS THE CONSUMER AND THE VERDICT ISN'T IN YET SAYS MR ROMANOS OF PARAMOUNT PUBLISHING I DON'T THINK WE'LL KNOW FOR AT LEAST ANOTHER WEEK HOW BIG THIS IS 9307300135 930730 PCNETWORK GROWTH EXPECTED BY STANDARD MICROSYSTEMS CORP HAUPPAUGE NY HAVING DIGESTED TWO LARGE ACQUISITIONS IN THE PAST THREE YEARS STANDARD MICROSYSTEMS CORP BELIEVES IT IS POISED TO TAKE ADVANTAGE OF THE GROWTH OF NETWORKED PERSONAL COMPUTERS AS THE TECHNOLOGY OF CHOICE FOR CORPORATE AMERICA STRATEGICALLY WE HAVE ALL THE PIECES IN PLACE TO TAKE ADVANTAGE OF THIS TRANSITION VICTOR TRIZZINO PRESIDENT AND CHIEF EXECUTIVE OF STANDARD MICROSYSTEMS SAID IN AN INTERVIEW THE COMPANY IS A SUPPLIER OF PRODUCTS SUCH AS NETWORK INTERFACE CARDS THAT ALLOW PERSONAL COMPUTERS TO BE CONNECTED TO LOCAL AREA NETWORKS AND SUCH NETWORKS TO BE CONNECTED TO EACH OTHER A PROCESS KNOWN AS INTERNETWORKING NOWADAYS NOT ONLY ARE CORPORATIONS LINKING THESE MACHINES TOGETHER IN LOCAL NETWORKS FOR INDIVIDUAL INHOUSE DEPARTMENTS THEY ALSO WANT TO BROADEN THE SCOPE OF THEIR NETWORKS TO CATER TO FARFLUNG OFFICES AND OPERATIONS A SHIFT THAT STANDARD MICROSYSTEMS HOPES TO EXPLOIT STANDARD MICROSYSTEMS' GROWTH ITS REVENUE JUMPED 89 IN FISCAL 1993 TO 250 MILLION FROM 1327 MILLION IN 1992 REFLECTS TWO CRUCIAL ACQUISITIONS IN OCTOBER 1991 IT ACQUIRED WESTERN DIGITAL CORP'S LOCAL AREA NETWORK BUSINESS FOR ABOUT 34 MILLION THAT BUSINESS'S SALES HAVE GROWN FROM 115 MILLION IN 1991 TO ABOUT 210 MILLION IN FISCAL 1993 AND IN DECEMBER 1992 IT ACQUIRED SIGMA NETWORK SYSTEMS INC WHICH ACCELERATED ITS ENTRY INTO THE INTERNETWORKING MARKET SO FAR THE ACQUISITIONS APPEAR TO HAVE PAID OFF TRIZZINO SAID HE WAS COMFORTABLE WITH ANALYSTS' PROFIT ESTIMATES OF BETWEEN 4 MILLION OR 31 CENTS A SHARE AND 41 MILLION OR 32 CENTS A SHARE IN THE FISCAL SECOND QUARTER ENDED AUG 31 A YEAR AGO THE COMPANY EARNED 35 MILLION OR 28 CENTS A SHARE THE COMPANY EXPECTS ITS REVENUE NOT INCLUDING ACQUISITIONS TO GROW 20 IN FISCAL 1994 AND EXPECTS EARNINGS TO REPRESENT ABOUT 12 OF REVENUE IN THE NEXT TWO YEARS 9307300134 930730 CREDIT RATINGS RATINGS OF HOUSEHOLD INTERNATIONAL INC DEBT BY MOODY'S COULD RISE NEW YORK MOODY'S INVESTORS SERVICE INC PUT THE RATINGS OF HOUSEHOLD INTERNATIONAL INC'S 95 BILLION IN DEBT UNDER REVIEW FOR POSSIBLE UPGRADE SINCE 1991 WHEN IT LOWERED THE RATINGS OF THE PROSPECT HEIGHTS ILL FINANCIALSERVICES CONCERN MOODY'S SAID HOUSEHOLD'S ASSET QUALITY HAS IMPROVED SIGNIFICANT CAPITAL HAS BEEN RAISED GROWTH RATES HAVE MODERATED AND LIQUIDITY HAS BEEN ENHANCED THE RATING CONCERN SAID ITS REVIEW WILL CONCENTRATE ON HOUSEHOLD'S STRATEGIC OBJECTIVES FOR ITS UNITS AS WELL AS EXPECTED CAPITAL LEVELS AND LIQUIDITY RELATIVE TO THE RISKS PERCEIVED IN THE BUSINESS HOUSEHOLD HAS NUMEROUS ISSUES OUTSTANDING THE PARENT'S SENIOR DEBT CURRENTLY IS RATED BAA1 AND SENIOR DEBT OF ITS HOUSEHOLD FINANCE CORP UNIT IS RATED A3 9307300133 930730 UNION STRIKE SPREADS AT CONTINENTAL BAKING TO SECOND EASTERN CITY ST LOUIS A STRIKE AGAINST CONTINENTAL BAKING CO SPREAD TO THE BOSTON AREA CUTTING OFF DELIVERIES OF WONDER BREAD TWINKIES AND OTHER BAKED GOODS TO STORES IN A SECOND EASTERN CITY THE WORK STOPPAGE BY MEMBERS OF THE BAKERY CONFECTIONERY & TOBACCO WORKERS INTERNATIONAL UNION BEGAN A WEEK AGO AT A CONTINENTAL PLANT IN PHILADELPHIA TEAMSTERS UNION DRIVERS WERE HONORING BOTH PICKET LINES HALTING DELIVERIES TO SUPERMARKETS CONVENIENCE STORES AND RESTAURANTS SOME 355 UNIONIZED WORKERS STRUCK IN PHILADELPHIA AND AN ADDITIONAL 450 AT THE BAKERY IN NATICK MASS OUTSIDE BOSTON THE UNION SAID THAT UNLESS WORKERS AT BOTH LOCATIONS AGREE ON A SETTLEMENT PRODUCTION WOULD BE AFFECTED IN A DOZEN OTHER MARKETS INCLUDING NEW YORK CITY PITTSBURGH WASHINGTON CINCINNATI AND PORTLAND ORE NO NEGOTIATIONS ARE SCHEDULED THE UNION SAID HEALTH CARE IS SAID TO BE A MAJOR ISSUE CONTINENTAL THE US'S LARGEST BAKERY IS A UNIT OF RALSTON PURINA CO 9307300132 930730 NIGHT COURT QUEEN IS OFTEN THE SUBJECT OF SUBJECTS' DREAMS IN THEIR SLEEP BRITONS TAKE TEA WITH HER MAJESTY TRADE ADVICE EVEN FALL IN LOVE BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL LONDON JULIA RUTHERFORD A SECRETARY HAD A DREAM SO DID BEN PIMLOTT A COLLEGE PROFESSOR SO DID ANTHONY CRISP A SELFDESCRIBED DREAM THERAPIST IN FACT THEY ALL HAD THE SAME DREAM THEY DREAMED OF THE QUEEN NOT JUST ANY QUEEN BUT ELIZABETH II QUEEN OF ENGLAND AND THE BRITISH EMPIRE THE PHENOMENON IS DIFFICULT TO QUANTIFY BUT APPARENTLY PEOPLE ALL OVER BRITAIN IN ALL WALKS OF LIFE DREAM REGULARLY OF THE QUEEN NO DOUBT SHE IS THE KEY FIGURE IN THE DREAM LIFE OF THE NATION SAYS MR CRISP WHO NOT ONLY DREAMS OF THE QUEEN BUT HELPS INTERPRET THE QUEENLY DREAMS OF OTHERS IN MANY OF THESE DREAMS EVEN THOSE OF ANTIROYALISTS THE QUEEN REPRESENTS THE ULTIMATE MOTHER FIGURE FOR OTHERS THE QUEEN SEEMS TO REPRESENT THE FEARS OF ULTIMATE HUMILIATION INDEED IF THE DREAM ANALYSTS ARE TO BE BELIEVED THOUSANDS OF BRITONS HAVE ENTERED THE DREAM WORLD OF BUCKINGHAM PALACE NAKED BEFORE HER MAJESTY A LOT OF BRITISH MEN DREAM OF FALLING IN LOVE WITH HER AS WELL NO DREAMER THOUGH HAS THUS FAR GONE TO THE TROUBLE OF THE INTRUDER WHO PENETRATED PALACE SECURITY IN 1982 AND CHATTED WITH HER MAJESTY ON HER BED UNTIL APPREHENDED BY GUARDS SUCH DREAMS AREN'T NEW EXPERTS SURMISE THAT LOYAL BRITONS HAVE BEEN DREAMING OF ROYALTY SINCE THE TIMES OF WILLIAM THE CONQUEROR BUT ANALYSTS STARTED DOCUMENTING THESE DREAMS ONLY 20 YEARS AGO WHEN A BRITISH AUTHOR NAMED BRIAN MASTERS PUBLISHED A BOOK ENTITLED DREAMS OF HM THE QUEEN ONE FAMOUS DREAMER WAS GRAHAM GREENE THE DECEASED BRITISH NOVELIST WHO JOTTED IN HIS DREAM DIARY THAT HE ENCOUNTERED QUEEN ELIZABETH SCOFFING DOWN A STICKY BUN AND LAMENTING TO HIM HOW MUCH SHE DETESTED HER HUSBAND'S SMILE PRINCE PHILIP BY THE WAY WAS STANDING NEARBY DRESSED IN A BOY SCOUT UNIFORM DREAM ANALYSTS SAY ALL THE RECENT AND WELLPUBLICIZED TROUBLES SURROUNDING BRITAIN'S ROYAL FAMILY APPEAR TO BE PROMPTING A SUDDEN OUTBREAK OF NOCTURNAL AUDIENCES WITH THE QUEEN INARGUABLY THESE ARE HARD TIMES FOR QUEEN ELIZABETH CELEBRATING HER 40TH YEAR ON THE BRITISH THRONE MARRIAGES OF THREE OF HER FOUR CHILDREN HAVE FLOUNDERED ACCOMPANIED BY DEVASTATING PUBLICITY ALLEGING VARIOUS PUBLIC CANOODLINGS AND PRIVATE INFIDELITIES THE QUEEN HERSELF HAS BEEN CRITICIZED FOR HER FINANCES TO QUIET THE CONTROVERSY SHE IS NOW PAYING TAXES SCADS OF PEOPLE WOULD LIKE NOTHING BETTER THAN TO SHEAR THE MONARCHY OF ITS MONEY PRESTIGE AND POWER YET IF THE QUEEN IS TAKING A BEATING IN THE MORNING PAPERS SHE SEEMS TO FARE BETTER AT NIGHT IN THE SUBCONSCIOUS OF HER SLEEPING SUBJECTS THESE DREAMS MEAN THAT THE BRITISH MONARCHY IS THIS STRANGE INSTITUTION THAT IS LOCKED INTO OUR INSTITUTIONAL MEMORY SAYS MR PIMLOTT A SOCIOLOGY PROFESSOR AT LONDON'S BIRKBECK COLLEGE WHO IS WRITING A BIOGRAPHY OF QUEEN ELIZABETH MS RUTHERFORD WHO DREAMS OF THE DAY THAT BRITAIN NO LONGER HAS A MONARCHY ADMITS THAT AT NIGHT SHE HAS HAD A SURPRISINGLY GENTLE DREAM OF THE QUEEN IN IT THE QUEEN RECOGNIZED MS RUTHERFORD FROM SUBURBAN SURREY IN A CROWD OF PEOPLE AND INVITED HER TO TEA AT BUCKINGHAM PALACE SHE ATTENDED AND SPENT THE ENTIRE AFTERNOON COMMISERATING WITH THE QUEEN ABOUT MEN I'M NOT SURE I LIKE THE QUEEN BUT IN MY DREAM THE QUEEN WAS A GOOD LISTENER SHE SAYS AND IT WAS CLEAR SHE DIDN'T HAVE MUCH USE FOR HER HUSBAND PRINCE PHILIP MS RUTHERFORD A DIVORCEE ADDS I COULD SYMPATHIZE WITH THAT IF MS RUTHERFORD'S DREAM WAS SPECIAL FOR HER IT IS A PRETTY ORDINARY QUEENDREAM ACCORDING TO MR CRISP AUTHOR OF A POPULAR BOOK CALLED THE DREAM DICTIONARY THIS IS FAIRLY TYPICAL OF HOW WE USE THE QUEEN'S IMAGE IN OUR DREAMS HE SAYS IT'S A THIRST FOR PUBLIC RECOGNITION TO FEEL IMPORTANT TO OBTAIN SELFCONFIDENCE AND IF MS RUTHERFORD HARBORS GUILT OR QUALMS ABOUT HER FAILED MARRIAGE WHAT BETTER AUTHORITY TO CONFIRM HER JUDGMENT THAN THE QUEEN HE ADDS MR CRISP IN FACT SAYS HE HAS HAD A SIMILAR DREAM WITH A TWIST HE AND THE QUEEN HAD A LOVE AFFAIR IN PUBLIC IN MY DREAM WE ARE IN A CROWDED PLACE THE QUEEN IS HOLDING MY HAND AND BEING VERY AFFECTIONATE I FOUND IT QUITE THRILLING THAT SHE WAS WILLING TO TAKE SUCH AN ENORMOUS RISK FOR ME SOOZIE HOLBECHE A JUNGIAN ANALYST AND AUTHOR SAYS MR CRISP'S ROYAL DREAM IS A COMMON ONE AMONG BRITISH MEN IT NOT ONLY REVEALS A LONGING FOR RECOGNITION THE QUEEN ALSO REPRESENTS THE ULTIMATE MOTHER FIGURE AND THE MALE URGE TO CONNECT TO THE HIGHEST QUALITY OF FEMALENESS IN MANY OF THESE DREAMS THE QUEEN OFTEN SNUGGLES THE DREAMERS TO HER BREAST SINCE THE BREAST IN DREAMS IS SYMBOLIC OF MOTHERING SHE ADDS MANY BRITISH DREAMERS ALSO USE THE QUEEN TO WORK OUT DIFFICULT RELATIONSHIPS AND INSECURITIES ONE OF MS HOLBECHE'S CLIENTS FOR EXAMPLE HAD A RECURRING DREAM OF BEING ON A YACHT WITH THE QUEEN THE QUEEN KEPT THROWING HERSELF OVERBOARD AND EXPECTING HIM TO SAVE HER AFTER A NUMBER OF TIMES HE BECAME QUITE IRATE AND DECIDED HE DIDN'T WANT TO SAVE THE QUEEN ANY MORE BUT HE DID ANYWAY IN THERAPY MS HOLBECHE LEARNED THAT THE MAN HAD A PARTICULARLY DIFFICULT RELATIONSHIP WITH HIS MOTHERINLAW WHO WAS CONTINUALLY CREATING EMOTIONAL SCENES AND LEAVING IT TO MY CLIENT TO SORT THINGS OUT THE DREAM WAS TELLING HIM HE NEEDED TO DEAL DECISIVELY WITH HIS MOTHERINLAW SHE ADDS ANOTHER CLIENT A WOMAN FOUND HERSELF IN THE BATHROOM WITH THE QUEEN WHO WITH A MODEST AMOUNT OF DISPLEASURE WAS WASHING THE WOMAN'S UNDERWEAR THE WOMAN WAS EMBARRASSED BUT LET THE QUEEN CONTINUE SINCE THE QUEEN ALSO REPRESENTS PARENTAL AUTHORITY ONE INTERPRETATION IS THAT THE DREAMER WAS ACKNOWLEDGING SLOPPY PERSONAL HABITS THAT SHE KNOWS HER MOTHER WOULDN'T APPROVE OF SAYS MS HOLBECHE BUT IT ALSO INDICATES HER WILLINGNESS TO HAVE HER UNDERWEAR WASHED IN PUBLIC AND TO SAY WELL IT'S OK THAT THERE ARE THINGS THAT I DO THAT MY MOTHER WOULDN'T APPROVE OF SHE ADDS DREAM ANALYSTS SAY THESE DREAMS SHARE COMMON GROUND WITH UBIQUITOUS DREAMS OF PEOPLE APPEARING NAKED BEFORE THE QUEEN OR FINDING THEMSELVES IN BUCKINGHAM PALACE WITH THE QUEEN AND HAVING TO ASK HER MAJESTY FOR DIRECTIONS TO THE BATHROOM THE LATTER IS WHAT HAPPENED TO JANE CROSS A NORTH LONDON TEMPORARY WORKER IN HER DREAM MS CROSS WAS EMBARRASSED BUT THE QUEEN WAS QUITE CHEERFUL ABOUT THE WHOLE THING IT WAS THE NICEST LOO I'VE EVER SEEN ALL GLITTERY AND GOLDEN ADDS MS CROSS WHAT THE QUEEN THINKS OF ALL THIS DREAMING OR INDEED WHAT SHE HERSELF DREAMS ABOUT IS ANYBODY'S GUESS THIS ISN'T A SUBJECT THAT ANYONE HERE CAN HELP YOU WITH I'M AFRAID SAYS A BUCKINGHAM PALACE SPOKESWOMAN 9307300131 930730 LETTERS TO THE EDITOR IN TRADE RUSSIA IS ITS OWN WORST ENEMY YOUR JULY 8 EDITORIAL YELTSIN AT THE SUMMIT REPEATS RUSSIAN VICE PREMIER SHOKHIN'S CONTENTION THAT WESTERN TRADE BARRIERS ARE SERIOUS OBSTACLES TO RUSSIA'S ENTERING THE INTERNATIONAL TRADE ARENA OUR COMPANY WORKS TO IMPORT CHEMICAL PRODUCTS BALL BEARINGS AND SOUVENIRS TOYS MINERALS FROM RUSSIA WHILE WE HAVE HAD SOME SUCCESSES WE HAVE FREQUENTLY ENCOUNTERED SERIOUS OBSTACLES THE LACK OF ADEQUATE SHIPPING CAPABILITIES INCLUDING UNAVAILABILITY OF DRUMS AND THE INABILITY TO PALLETIZE MATERIALS PROBLEMS TRANSFORMING HIGH QUALITY BLOCKS OF MATERIAL INTO PELLETS OR ANOTHER TRANSPORTABLE FORM PROHIBITIVE EXPORT DUTIES AND OUTRIGHT PROHIBITION OF EXPORT OF SOME MATERIALS FOR EXAMPLE PRECIOUS METALS IN ANY FORM AND WORKS OF ART AND SOMETIMES JUST HIGH PRICES IN NO CASE SINCE RUSSIA WAS GRANTED MOSTFAVOREDNATION STATUS HAVE WESTERN DUTIES PREVENTED US FROM IMPORTING ANY MATERIAL MR SHOKHIN EXPRESSES CONCERN THAT THE WEST IS ALLOCATING FUNDS TO EXPORT OUR EQUIPMENT TO RUSSIA RATHER THAN TO ENCOURAGE THE RUSSIANS TO IMPROVE THEIR OWN ECONOMY RUSSIA WOULD BE BETTER OFF KEEPING THE OIL AND STEEL IN THE COUNTRY AND WITH THE NEW IMPORTED WESTERN EQUIPMENT MANUFACTURING CHEMICALS AND BALL BEARINGS FOR EXPORT TO THE WEST THIS WOULD CREATE LONGTERM MANUFACTURING JOBS FOR THE ECONOMY 9307300130 930730 WHO'S NEWS GENERATION 5 TECHNOLOGY INC GENERATION 5 TECHNOLOGY INC DENVER CHAIRMAN FRANK RICHARDSON A FOUNDER OF THIS SOFTWARE CONCERN RESIGNED TO PURSUE OTHER OPPORTUNITIES THE COMPANY SAID MR RICHARDSON 49 YEARS OLD WAS SUCCEEDED AS CHAIRMAN BY CHARLES POWELL WHO HAS BEEN CHIEF EXECUTIVE OFFICER MR POWELL 39 WAS SUCCEEDED AS CEO BY CHARLES HAWLEY 43 PROMOTED FROM CHIEF OPERATING OFFICER MR RICHARDSON WHO ALSO RESIGNED AS TREASURER WON'T REMAIN A DIRECTOR BUT HIS PARTING IS ON A FRIENDLY BASIS A SPOKESWOMAN SAID MR RICHARDSON COULDN'T BE REACHED FOR COMMENT 9307300129 930730 FORD AND CHRYSLER SAY THEY PLAN OVERTIME DETROIT FORD MOTOR CO AND CHRYSLER CORP SAID THEY PLAN OVERTIME THIS WEEK AND NEXT WEEK AT SEVERAL DOMESTIC CAR AND TRUCK ASSEMBLY PLANTS GENERAL MOTORS CORP'S US PRODUCTION FACILITIES ARE IDLE THIS WEEK FOR SUMMER VACATION ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 123440 CARS AND TRUCKS THIS WEEK A DECREASE OF 217 FROM THE 157621 VEHICLES BUILT IN THE YEARAGO PERIOD 9307300128 930730 LETTERS TO THE EDITOR ADVICE FOR UKRAINE EMPTY YOUR SILOS I AM RATHER CONFUSED BY ANNE APPLEBAUM'S JUNE 30 EDITORIAL PAGE ARTICLE HOW WE BOMBED ON NUKES IN UKRAINE IS SHE EXCUSING THE PROLIFERATION OF STRATEGIC NUCLEAR WEAPONS WORSE YET IS SHE ACTUALLY SUGGESTING THAT ICBMS ARE SOMEHOW THE SINE QUA NON OF NATIONAL SOVEREIGNTY NO ONE CAN DENY THAT UKRAINE HAS GOOD REASON TO FEEL UNEASY ABOUT LIVING NEXT TO ITS FORMER OPPRESSOR INDEED HAMFISTED RUSSIAN DIPLOMACY HAS CONTRIBUTED TO FEARS IN KIEV AND ELSEWHERE THAT THERE ARE SOME IN MOSCOW WHO WOULD HAPPILY SEE A RUSSIAN OR EVEN SOVIET IMPERIAL RESTORATION BUT STRATEGIC ARMS WILL NOT ALLAY ANY OF THOSE FEARS INDEED THE UKRAINIANS HAVE GIVEN MOSCOW AND WASHINGTON THE PERFECT PRETEXT FOR A CONFRONTATIONAL POLICY THAT UNITES THE WEST AND RUSSIA AGAINST UKRAINE THE FACT IS IT IS IN UKRAINE'S BEST INTEREST TO GIVE UP THE WEAPONS AS KIEV MAY SOON FIND JOINING THE NUCLEAR CLUB IS NOT ALL IT'S CRACKED UP TO BE IT IS A NERVERACKING EXPERIENCE FOR MOST OF ITS MEMBERS MORE IMPORTANT HOWEVER IS THAT IT IS IN THE AMERICAN INTEREST TO SEE WEAPONS DISMANTLED THAT WERE DESIGNED TO DESTROY AMERICAN CITIES AND FOR ALL WE KNOW ARE STILL TARGETED ON THEM MS APPLEBAUM MIGHT WELL CONSIDER THAT US FOREIGN POLICY SHOULD SERVE AMERICAN NOT UKRAINIAN INTERESTS THE WORLD HAS SHOWN LITTLE TOLERANCE FOR NUCLEAR AMBITIONS ON THE PART OF OTHER NATIONS FROM NORTH KOREA TO SOUTH AFRICA I REMAIN BAFFLED AS TO WHY UKRAINIAN NUCLEAR AMBITIONS HAVE FOUND SO MANY APOLOGISTS MS APPLEBAUM STATES THAT UKRAINE HAS NEVER IN A THOUSAND YEARS OF HISTORY MANAGED TO RULE ITS OWN STATE IT SHOULD BE POINTED OUT THAT THE OLD CITY OF KIEV ESTABLISHED BEFORE THE NINTH CENTURY DID HAVE ITS OWN GOVERNMENT IN FACT THE CHRISTIAN BAPTISM OF THE SUBJECTS OF KIEV BY PRINCE VLADIMIR IN 988 IS GENERALLY TAKEN TO MARK THE BEGINNING OF UKRAINE UNTIL THE ATTACK OF THE MONGOLS IN THE 13TH CENTURY THE DESCENDANTS OF VLADIMIR RULED KIEV AND THE SURROUNDING REGION DEPENDING ON HISTORIC INTERPRETATION WHAT WE NOW UNDERSTAND TO BE RUSSIA DID NOT EXIST UNTIL WELL AFTER THE FOUNDING OF MOSCOW IN THE 12TH CENTURY UKRAINE EMERGED BRIEFLY AS AN INDEPENDENT STATE WITH ITS OWN CURRENCY AND GOVERNMENT IN 1918 EVENTUALLY OF COURSE THE BOLSHEVIKS CRUSHED UKRAINE MS APPLEBAUM ALSO SAYS THAT SO LITTLE TANGIBLE EVIDENCE OF ITS OWN NATIONHOOD ASIDE FROM A FEW CHURCHES A FEW POEMS AND SOME FOLK TRADITIONS HAS SURVIVED RUSSIAN OCCUPATION ASIDE FROM FAILING TO TAKE INTO ACCOUNT A VAST AMOUNT OF SUCH EVIDENCE THE REDUCTION OF A NATION IN SUCH A DISTORTING MANNER BELIES THE WHOLE CONCEPT OF NATIONAL IDENTITY LANGUAGE HISTORY CULTURE AND POINT OF VIEW UKRAINIAN NATIONALISM IS A POWERFUL FORCE IN EUROPE THAT DID NOT EMERGE FROM A VACUUM AND THE US WOULD DO WELL NOT TO DISREGARD THIS REALITY 9307300127 930730 INTERNATIONAL ISRAELI COURT ISSUES ACQUITTAL FOR DEMJANJUK BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM ISRAEL'S SUPREME COURT WROTE AN INCONCLUSIVE ENDING TO WHAT PROBABLY WILL BE THE LAST NAZI WAR CRIMES TRIAL TO TAKE PLACE IN THE COUNTRY THE COURT RULED THAT JOHN DEMJANJUK IS NOT IVAN THE TERRIBLE A UKRAINIAN CONCENTRATION CAMP GUARD WHO TORTURED JEWS AS HE FORCED THEM INTO THE GAS CHAMBERS AT TREBLINKA IT THREW OUT HIS DEATH SENTENCE THE FIVEMEMBER COURT SAID THERE WAS REASONABLE DOUBT WHETHER MR DEMJANJUK 73 YEARS OLD HAD BEEN AT THE TREBLINKA CAMP IN POLAND HOWEVER IT SAID HE HAD BELONGED TO A NAZI UNIT IN TWO OTHER DEATH CAMPS THE MATTER IS CLOSED BUT NOT COMPLETE THE COMPLETE TRUTH IS NOT THE PREROGATIVE OF THE HUMAN JUDGE THE VERDICT SAID TREBLINKA SURVIVORS WHO HAD IDENTIFIED MR DEMJANJUK AS IVAN THE TERRIBLE AT THE TRIAL WEPT AFTER THE VERDICT WAS READ POLICE WERE ASSIGNED TO GUARD THE JUDGES' HOMES THE JUDGES SAID THEY BELIEVED THE TESTIMONY OF THE SURVIVORS BUT THEY SAID KGB RECORDS OF FORMER TREBLINKA GUARDS' INTERROGATIONS WHICH CAME TO LIGHT AFTER MR DEMJANJUK'S CONVICTION FIVE YEARS AGO RAISED THE POSSIBILITY THAT IVAN THE TERRIBLE MIGHT BE ANOTHER MAN DOCUMENTS PRESENTED IN THE TRIAL INCLUDING A NAZIGUARD IDENTIFICATION CARD BEARING HIS NAME PICTURE AND PERSONAL DETAILS PROVE THAT MR DEMJANJUK SERVED IN THE NAZI CONCENTRATION CAMPS SOBIBOR AND FLOSSENBURG THE JUDGES SAID BUT THOSE CHARGES WERE NOT LISTED IN THE ORIGINAL INDICTMENT THE JUDGES RECOMMENDED AGAINST HOLDING A NEW TRIAL ISRAEL HAS ALREADY SERVED MR DEMJANJUK WITH A DEPORTATION ORDER HE WILL REMAIN IN JAIL UNTIL A COUNTRY CAN BE FOUND TO TAKE HIM THE US STRIPPED HIM OF CITIZENSHIP IN 1981 AND HAS SAID HE CANNOT RETURN BECAUSE HE LIED ABOUT HIS WARTIME ACTIVITIES ON IMMIGRATION PAPERS MR DEMJANJUK'S SON JOHN JR WEPT AFTER THE VERDICT AND SAID HE WAS GLAD TO SEE THAT THE JUDGES ACTUALLY HAD THE COURAGE TO STOP THE INJUSTICE FOR HOLOCAUST SURVIVORS THE VERDICT REAWAKENED FEARS THAT AFTER THEY ARE GONE THE HOLOCAUST WILL NO LONGER BE REMEMBERED WHAT WAS ON TRIAL WASN'T JUST JOHN DEMJANJUK BUT THE MEMORY OF HOLOCAUST SURVIVORS FOR THEM THIS DECISION IS PAINFUL AND TRAUMATIC SAID JOHN LEMBERGER DIRECTOR OF AMCHA A NONPROFIT AGENCY PROVIDING PSYCHOLOGICAL AND SOCIAL SUPPORT SERVICES FOR HOLOCAUST SURVIVORS AND THEIR CHILDREN THIS IS THEIR WORST FEAR THAT THEY WILL SPEAK UP AND NO ONE WILL BELIEVE THEM FOR OTHER COUNTRIES CONTEMPLATING WAR CRIMES TRIALS THE NOTION THAT ISRAEL MIGHT HAVE THE WRONG MAN HAD ALREADY SLOWED DOWN PROSECUTIONS AND NAZIHUNTERS SAY THE VERDICT MAY AFFECT FUTURE CASES I FEAR THE DECISION IN THIS CASE WILL WEAKEN THE ALREADY WEAK RESOLVE OF SEVERAL COUNTRIES PRESENTLY ENGAGED IN THE PROCESS OF INVESTIGATION SAYS EFRAIM ZUROFF DIRECTOR OF THE SIMON WIESENTHAL CENTER IN JERUSALEM WHO HAS TRACED HUNDREDS OF SUSPECTED WAR CRIMINALS I THINK THIS WILL BE THE LAST NAZI TRIAL IN ISRAEL HE ADDED 9307300126 930730 THE AMERICAS MEXICAN REGULATORS HUMMING THE DEREGULATION RAG BY SANTIAGO LEVY IN A VERY SHORT TIME MEXICO HAS GONE FROM BEING A VERY CLOSED AND OVERREGULATED ECONOMY TO ONE OF THE MORE OPEN ECONOMIES IN THE WORLD SINCE WE BEGAN OUR PROGRAM OF ECONOMIC DEREGULATION IN DECEMBER 1988 WE HAVE FOUND THAT JUDICIOUS DEREGULATION CAN FOSTER PROSPERITY IN ADDITION THE PROCESS OF TRADE LIBERALIZATION AND DEREGULATION HAS BROUGHT ABOUT A RADICAL CHANGE OF MINDSET AMONG PUBLIC ADMINISTRATORS REGARDING THE OVERALL ROLE OF MARKET REGULATION OUR DEREGULATORY EXPERIENCE FORCED MEXICAN REGULATORS TO FACE A SIMPLE REALITY GOVERNMENT REGULATORS LACK COMPLETE INFORMATION ABOUT THE MARKETS THEY ARE REGULATING THEY CANNOT COMPLETELY KNOW OR UNDERSTAND THE OPERATIONS COST STRUCTURE OR SPECIFIC PROBLEMS OF EVERY ENTERPRISE IN THE ECONOMY THIS MAY SEEM SELFEVIDENT TO SOME BUT FOR US IT WAS A HARD LESSON TO LEARN AT THE SAME TIME A SOLID REGULATORY FRAMEWORK IS IMPORTANT TO ESTABLISH A MARKET WITHIN WHICH COMPETITION IS GUARANTEED AND CONTRACTS HONORED REGULATION SHOULD AMONG OTHER THINGS PROVIDE LEGAL SECURITY TO MARKET TRANSACTIONS PROTECT CONSUMERS AND THE ENVIRONMENT AND SAFEGUARD INTELLECTUAL PROPERTY RIGHTS WHERE POSSIBLE REGULATION ALSO SHOULD PROMOTE COMPETITION AND PROVIDE ADEQUATE INCENTIVES SO THAT FREEMARKET DECISION MAKING RESULTS IN SOCIALLY DESIRABLE OUTCOMES ALL THIS IMPLIES THAT THE RULES OF THE GAME FOR MARKET PARTICIPANTS SHOULD BE CLEAR AND PERMANENT UNIFORMLY APPLIED AND SUBJECT TO MONITORING AT REASONABLE COSTS THE SANTA ROSALIA MINE IN THE STATE OF BAJA CALIFORNIA ILLUSTRATES THE EFFECT OF DEREGULATORY REFORM THE OLD REGULATIONS CREATED INCENTIVES FOR LAND TO REMAIN IDLE BY CHARGING HIGHER TAX RATES ON EXTRACTION RIGHTS THAN ON LAND SURFACE RIGHTS DEREGULATION REVERSED THIS SITUATION BY ELIMINATING TAXES ON EXTRACTION RIGHTS THIS HAS RESULTED IN MINING COMPANIES OPENING UP LARGE EXTENSIONS OF LAND FOR EXPLORATION NOW EXPLORATION FOR COBALT IS BEING UNDERTAKEN IN SANTA ROSALIA FOR THE FIRST TIME IN MEXICO MINING DEREGULATION ALSO REDUCED THE NUMBER OF PRODUCTS LIKE COAL THAT COULD BE EXPLOITED ONLY BY THE GOVERNMENT AS A RESULT MICARE A NEWLY PRIVATIZED FIRM CAN PRODUCE FOUR MILLION TONS OF COAL ANNUALLY AS PART OF CARBON UNO AND CARBON DOS A COAL MINING AND ELECTRIC PROJECT IN ALL EXCESSIVE REGULATIONS HAD EXCLUDED OVER 16 MILLION ACRES FROM PRIVATE EXPLORATION AND EXPLOITATION OF THESE OVER NINE MILLION HAVE BEEN RELEASED SO FAR AND ANOTHER THREE MILLION WILL BE RELEASED SHORTLY MEXICAN PORTS WERE ALSO HEAVILY OVERREGULATED LEADING TO GREATER COSTS FOR SHIPPING COMPANIES AND A GENERAL DETERIORATION OF MEXICAN COMPETITIVENESS IN FACT RATHER THAN USING MEXICAN PORTS OUR IMPORTERS AND EXPORTERS OFTEN RECHANNELED MERCHANDISE TO NEARBY PORTS IN THE US ALTHOUGH THIS INVOLVED LONGER TRIPS BY LAND IN VERACRUZ FOR EXAMPLE PRODUCTS HAD TO PASS THROUGH AT LEAST FOUR DIFFERENT TRADE UNIONS WHICH HAD EXCLUSIVITY ON THEIR RESPECTIVE OCCUPATIONS BEFORE THEY WERE ALLOWED TO LEAVE THE PORT THIS PROCESS WAS OBVIOUSLY VERY SLOW AND COSTLY AND COULD LEAD TO THE LOSS OF PRODUCTS WHILE IN A NOMAN'S LAND BETWEEN THE UNION'S AREAS OF INFLUENCE THE REFORMS INVOLVED THE TEMPORARY REQUISITION OF THE PORT OF VERACRUZ IN 1991 AND ITS SUBSEQUENT RESTRUCTURING AS A RESULT OF THE RESTRUCTURING AREAS OF EXCLUSIVE INFLUENCE WERE OPENED UP AND PERMITS GRANTED FOR THREE NEW COMPETING COMPANIES TO PROVIDE THE WHOLE RANGE OF PORT SERVICES PRODUCTIVITY INCREASED 80 AS A RESULT OF EFFICIENCY GAINS BEFORE THE REFORMS IT USED TO TAKE 40 HOURS TO LOAD OR UNLOAD A 600 CONTAINER SHIP NOW IT TAKES ONLY 22 HOURS REFORMS ARE PROCEEDING FURTHER THE RECENTLY ENACTED LAW ON PORTS ALLOWS FOR THE THE COMPLETE OPERATION OF A PORT BY A PRIVATE CORPORATION ALONG WITH THE PRIVATIZATION OF THE ASSOCIATED INFRASTRUCTURE ALL OF COURSE COUPLED WITH A REGULATORY FRAMEWORK THAT PROMOTES COMPETITION BETWEEN PROVIDERS OF PORT SERVICES OLD REGULATIONS ALSO GREATLY INCREASED PRODUCTION AND DISTRIBUTION COSTS IN THE HEALTH AND FOOD INDUSTRIES THROUGH DIRECT CONTROLS WITHOUT ACHIEVING THE GOAL OF PROTECTING CONSUMERS' HEALTH THE NEW FEDERAL HEALTH LAW WHICH TOOK EFFECT IN 1991 CHANGED THIS AMONG OTHER REFORMS IT ELIMINATED THE NEED FOR SANITARY LICENSES IN PREMISES CONCERNED WITH FOOD PROCESSING TOBACCO BEVERAGES AND BEAUTY AND CLEANING PRODUCTS THESE RESTRICTIONS WERE REPLACED BY A NOTIFICATION SCHEME THE USE OF OFFICIAL STANDARDS AND RANDOM INSPECTIONS IN ADDITION THE NEW LAW ELIMINATED MOST IMPORT PERMITS FOR THESE PRODUCTS WITH THE EXCEPTION OF THOSE CONSIDERED SERIOUS HEALTH HAZARDS A SANITARY CERTIFICATE FROM THE COUNTRY OF ORIGIN IS NOW ACCEPTABLE IN MOST INSTANCES DEREGULATION HAS MADE POSSIBLE INCREASED COMPETITION IN SECTORS WHERE ADDITIONAL ENTRY BY PRIVATE PARTIES WAS SUBJECT TO ARTIFICIAL BARRIERS OR SUBJECT TO MONOPOLIZATION BY THE GOVERNMENT BUT IT WAS VITAL THAT THESE CHANGES BE ACCOMPANIED BY A REGULATORY REFORM THAT WOULD GIVE PERMANENCE TO THE RESULTS AND FORCEFULLY PROTECT THE COMPETITIVE PROCESS THIS WAS THE PURPOSE OF OUR NEW ANTITRUST LAW WHICH WAS APPROVED BY CONGRESS IN DECEMBER 1992 MEXICO HAD AN ANTITRUST LAW SINCE 1934 BUT IT PROVED INEFFECTIVE AS ITS PROVISIONS DID NOT COVER MANY FORMS OF ANTICOMPETITIVE BEHAVIOR OUR NEW FEDERAL LAW ON ECONOMIC COMPETITION TAKES A STRONG STANCE AGAINST ANTICOMPETITIVE PRACTICES PRICE FIXING ARRANGEMENTS HORIZONTAL MARKET DIVISION AND BID RIGGING ARE CONSIDERED UNLAWFUL OTHER PRACTICES ARE SUBJECT TO A RULE OF REASON APPROACH MERGERS ABOVE THE THRESHOLDS ESTABLISHED BY THE LAW MUST BE PRENOTIFIED IN EVALUATING MERGERS HOWEVER THE MAIN CRITERIA IS NOT SO MUCH THE SIZE OF THE FIRMS INVOLVED AS THE IMPACT THAT IT MIGHT HAVE ON COMPETITION THERE IS NO RIGID USE OF CONCENTRATION INDICES AND TO PROMOTE AN INTEGRAL COMPETITION POLICY THE LAW IS APPLICABLE TO PUBLIC AS WELL AS TO PRIVATE COMPANIES THE ONLY EXEMPTIONS ARE THOSE ESTABLISHED BY THE CONSTITUTION EXPERIENCE SHOWS THAT THE MARKET DESPITE ITS SHORTCOMINGS IS THE MOST EFFICIENT MECHANISM TO ALLOCATE RESOURCES IN LINE WITH THAT BELIEF DEREGULATION IS ONLY PART OF OUR STRATEGY OF INTERNAL ECONOMIC REFORM BUT TOGETHER WITH MACROECONOMIC STABILITY FISCAL DISCIPLINE FREER FOREIGN TRADE AND INCREASED SPENDING IN EDUCATION HEALTH AND POVERTY ALLEVIATION DEREGULATION IS BEING USED TO TRANSLATE ECONOMIC GROWTH INTO INCREASED BENEFITS FOR THE LARGEST POSSIBLE MAJORITY MR LEVY FORMERLY DIRECTOR OF THE OFFICE OF ECONOMIC DEREGULATION IN THE MINISTRY OF TRADE IS NOW CHAIRMAN OF THE FEDERAL COMPETITION COMMISSION 9307300125 930730 LETTERS TO THE EDITOR YOUR VIEWS ON EGYPT MUBARAK ARE DISTORTED IN YOUR JUNE 14 PAGE ONE ARTICLE WANING SUPPORT YOU TRY THROUGH CONTRIVED ATTRIBUTIONS TO MAKE THE CASE THAT PRESIDENT HOSNI MUBARAK OF EGYPT IS LOSING HIS SUPPORT BASE IN THE COUNTRY NOT ONLY THAT BUT YOU MAKE THE ASSERTION ON THE BASIS OF ONE ONLY ONE DISGRUNTLED SOURCE THAT THE MILITARY'S SUPPORT OF MR MUBARAK IS NO LONGER ASSURED TO PROVE YOUR POINT ABOUT SUCH AN ASSERTION AND ABOUT OTHER CLAIMS YOU DELIBERATELY SOUGHT THE VIEWS OF PEOPLE KNOWN TO BE OPPONENTS OF THE REGIME WHICH IS FINE BUT YOU HAVE FAILED MISERABLY TO BALANCE SUCH VIEWS WITH OTHERS FROM EGYPTIAN OFFICIALS OR INDEPENDENTMINDED OBSERVERS UNDER PRESIDENT MUBARAK EGYPT IS AN OPEN SOCIETY AND PEOPLE TALK AND WRITE FREELY YOU FAILED TO SUBSTANTIATE ANY OF THE OTHER ALLEGATIONS ABOUT CORRUPTION AND THE WASTE IN MILITARY SPENDING EGYPT HAS NOT RECEIVED ANY COMPLAINTS FROM THE AMERICAN PARTNERS CONCERNING THE PRODUCTION OF M1A1 ABRAMS TANKS 9307300123 930730 UAL POSTS NET OF 22 MILLION FOR 2ND QUARTER STRING OF PROFITS BY AIRLINES RAISES HOPES INDUSTRY'S TROUBLES MAY BE EASING BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP BECAME THE THIRD OF THE THREE BIGGEST US AIRLINE COMPANIES TO POST A MODERATE PROFIT IN THE LATEST QUARTER BUT SAID IT STILL NEEDS SUBSTANTIAL COST CUTS TO BE A VIABLE COMPETITOR FOR THE LONG TERM UAL PARENT OF UNITED AIRLINES SAID IT EARNED 22 MILLION OR 54 CENTS A SHARE IN THE SECOND QUARTER A SHARP IMPROVEMENT FROM A YEAR EARLIER WHEN FARE WARS AND RECESSION LED TO A LOSS OF 91 MILLION OR 380 A SHARE REVENUE JUMPED 13 TO 355 BILLION FROM 314 BILLION A YEAR EARLIER THE RESULTS WERE WITHIN THE RANGE OF WALL STREET'S EXPECTATIONS AND UAL SHARES EASED 375 CENTS TO 139 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DELTA AIR LINES AND AMR CORP THE PARENT OF AMERICAN AIRLINES HAVE ALREADY REPORTED SIMILAR RETURNS TO PROFITS RAISING HOPES THAT THE INDUSTRY IS FINALLY BEGINNING TO STABILIZE AFTER A SERIES OF LOSSES UAL'S PROFIT TURNAROUND WAS AIDED BY 400 MILLION IN ANNUAL COST CUTS PUT IN PLACE EARLIER THIS YEAR THE LATEST QUARTER SHOWED AT LEAST SMALL IMPROVEMENTS IN THREE KEY MEASUREMENTS OF AN AIRLINE'S HEALTH REVENUE RECEIVED FOR EACH PASSENGER MILE COSTS PER AVAILABLE SEAT MILE AND PERCENTAGE OF SEATS FILLED BUT CHAIRMAN STEPHEN WOLF CALLED THE RESULTS CLEARLY UNSATISFACTORY DESPITE PROGRESS THE EXECUTIVE SAID IN A STATEMENT THE CARRIER'S LONGTERM VIABILITY IN THE DOMESTIC MARKET REQUIRES SUBSTANTIAL FURTHER REDUCTION IN UNIT COSTS LIKE OTHER LARGE CARRIERS UNITED FACES STIFF COMPETITION PARTICULARLY ON SHORTER ROUTES WHERE CARRIERS SUCH AS SOUTHWEST AIRLINES BOAST LOWER COSTS ALTHOUGH THE FLIGHT ATTENDANTS AND MACHINISTS UNIONS REJECTED WAGE CONCESSIONS REQUESTED BY THE COMPANY EARLIER THIS YEAR A COALITION OF THOSE TWO AND THE PILOTS UNION EARLIER THIS MONTH PROPOSED CONCESSIONS IN RETURN FOR A MAJORITY STAKE IN THE AIRLINE UNDER ONE PLAN CONSIDERED BY THE UNIONS EMPLOYEES WOULD OFFER WAGE BENEFIT AND WORKRULE SAVINGS OF MORE THAN 3 BILLION OVER FIVE YEARS IN RETURN FOR 60 OF THE COMPANY BUT WHETHER UAL IS WILLING TO GIVE UP MAJORITY OWNERSHIP TO LABOR ISN'T CLEAR THE COMPANY AND THE UNIONS HAVE REMAINED TIGHTLIPPED ABOUT THEIR DISCUSSIONS BUT INDIVIDUALS FAMILIAR WITH THE SITUATION SAID ADVISERS FOR THE COMPANY AND THE UNIONS HAVE BEEN MEETING TO LAY THE GROUNDWORK FOR POSSIBLE NEGOTIATIONS 9307300122 930730 MONEY FUND ASSETS ADVANCE 367 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 367 BILLION TO 58373 BILLION FROM 58006 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 642 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 8301 MILLION TO 39249 BILLION THE TRADE GROUP SAID ASSETS OF 402 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 3347 MILLION TO 30890 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS ROSE BY 4954 MILLION TO 8359 BILLION ASSETS OF THE 276 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 284 BILLION TO 19124 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 222 TAXABLE MONEY MARKET FUNDS ROSE BY 271 BILLION TO 17063 BILLION ASSETS OF 54 TAXEXEMPT FUNDS ROSE BY 1338 MILLION TO 2061 BILLION 9307300121 930730 INTERNATIONAL LDP OPPONENTS PICK HOSOKAWA TO LEAD JAPAN LIKELY NEW PRIME MINISTER IS A TELEGENIC GOVERNOR WHO BURST ONTO SCENE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AT A TIME OF GREAT POLITICAL UNCERTAINTY JAPAN APPEARS READY TO TAKE A PAGE OUT OF THE US PLAYBOOK TAP A YOUNG SOUTHERN GOVERNOR UNTESTED IN NATIONAL AND WORLD AFFAIRS TO LEAD THE NATION A BROAD COALITION OF OPPOSITION PARTIES CHOSE MORIHIRO HOSOKAWA 55 YEARS OLD TO HEAD THEIR ALLIANCE YESTERDAY WHEN PARLIAMENT CONVENES NEXT MONTH THE GROUP IS EXPECTED TO COMMAND ENOUGH VOTES TO NAME A GOVERNMENT AND END NEARLY FOUR DECADES OF RULE BY THE LIBERAL DEMOCRATIC PARTY AS THE ALLIANCE'S LEADER MR HOSOKAWA A FORMER GOVERNOR OF KUMAMOTO PREFECTURE IN SOUTHERN JAPAN WOULD BECOME THE NATION'S NEXT PRIME MINISTER IN ONLY SIX WEEKS JAPAN'S POLITICAL WORLD HAS BEEN TURNED ON ITS HEAD THE LDP GOVERNMENT LOST A NOCONFIDENCE MOTION IN PARLIAMENT IN JUNE THEN LOST ELECTIONS JULY 18 NO ONE SYMBOLIZES THE CHANGES BETTER THAN MR HOSOKAWA SINCE 1955 JAPAN'S RULERS HAVE RISEN BY PATIENTLY CLIMBING THE LDP'S LEADERSHIP LADDER BACKROOM POLITICKING SKILLS WERE THE MAIN QUALIFICATION FOR POWER IN CONTRAST THE TELEGENIC MR HOSOKAWA FORMED HIS OWN SMALL REFORMMINDED PARTY JUST OVER A YEAR AGO AND ROCKETED TO PROMINENCE BY SUCCESSFULLY COURTING PUBLIC OPINION MR HOSOKAWA CUTS A GLAMOROUS FIGURE THAT IS UNPRECENDENTED FOR A JAPANESE LEADER TV STATIONS HAVE FLOODED THE AIRWAVES WITH STILLS FROM A MOVIE IN WHICH MR HOSOKAWA PLAYED A SAMURAI LORD HE IS SAID TO ENJOY SKIING AND PLAYING BEETHOVEN ON THE PIANO AND HIS FRIENDS INCLUDE ACTORS ARCHITECTS AND FAMOUS EXECUTIVES HE ALSO ESPOUSES A BRAND OF POLITICAL CORRECTNESS NEW TO JAPAN HE GAVE HIS WIFE A PROMINENT ROLE IN HIS CAMPAIGN AND HAS VOWED TO GIVE 20 OF HIS CABINET POSTS TO WOMEN MR HOSOKAWA WOULD BE JAPAN'S YOUNGEST PRIME MINISTER IN TWO DECADES AND LIKE PRESIDENT CLINTON HE WOULD HERALD THE ARRIVAL OF A GENERATION OF LEADERS WHO GREW UP AFTER WORLD WAR II THE PACE OF CHANGE SEEMS TO HAVE CAUGHT EVEN MR HOSOKAWA BY SURPRISE WHEN HE FIRST LAUNCHED HIS CRUSADE HE RECALLED LAST NIGHT I DID NOT REALLY THINK THAT THE CIRCUMSTANCES FOR A CHANGE IN ADMINISTRATION WOULD COME THIS FAST MR HOSOKAWA IS THE SCION OF A FAMILY WHOSE RECORDED HISTORY STRETCHES BACK 18 GENERATIONS HE'S THE DESCENDANT OF FEUDAL LORDS THE GRANDSON OF A PREWAR PRIME MINISTER BEFORE BECOMING GOVERNOR OF KUMAMOTO MR HOSOKAWA SERVED AS A JUNIOR LDP MEMBER OF THE DIET EARLY IN HIS CAREER HE WAS A PROTEGE OF SOME OF THE LDP'S MOST CORRUPT BOSSES TODAY HIS STRONGEST COALITION PARTNERS ARE FORMER LDP POWERBROKERS WHOM HE DISDAINED ON THE CAMPAIGN TRAIL JUST TWO WEEKS AGO WOULD A HOSOKAWA ADMINISTRATION CHANGE JAPAN FIRST OF COURSE IT MUST ACTUALLY SUCCEED IN TAKING CONTROL MR HOSOKAWA'S COALITION CLAIMS TO HAVE ENOUGH VOTES TO NAME A GOVERNMENT WHEN A SPECIAL SESSION OF PARLIAMENT OPENS LIKELY ON AUG 5 BUT THE SEVENPARTY GROUP WHICH COMBINES FORMER CONSERVATIVE LDP MEMBERS AND DIEHARD SOCIALISTS COULD STILL CRACK BEFORE THE FINAL VOTE TODAY THE LDP WILL CHOOSE ITS CANDIDATE TO COMPETE WITH MR HOSOKAWA THE TWO CONTENDERS ARE YOHEI KONO 56 WHO'S KNOWN AS A LEADING REFORMER WITHIN THE PARTY AND FORMER FOREIGN MINISTER MICHIO WATANABE 70 THE TOP PRIORITY OF MR HOSOKAWA'S RAGTAG ALLIANCE IS TO OVERHAUL JAPAN'S ELECTORAL SYSTEM CONSIDERED A BREEDING GROUND FOR CORRUPTION BY THE END OF THE YEAR THE GROUP ALSO HAS ENDORSED A BAN ON CORPORATE POLITICAL DONATIONS THE SOURCE OF MANY LDP SCANDALS IN RECENT YEARS BEYOND THAT MR HOSOKAWA HAS OUTLINED A FAIRLY RADICAL VISION FOR A NEW JAPAN MR HOSOKAWA CAMPAIGNED AGAINST THE CENTRAL GOVERNMENT HE DELIGHTS IN TELLING AUDIENCES HOW FRUSTRATING IT IS FOR A LOCAL POLITICIAN TO DO BATTLE WITH TOKYO'S BUREAUCRACY HE ADVOCATES GREATER DEREGULATION AND DECENTRALIZATION BUT IT ISN'T CLEAR HOW MUCH CONTROL MR HOSOKAWA WILL HAVE OVER HIS FRAGILE COALITION THE GROUP YESTERDAY RELEASED A PLATFORM LONG ON RHETORIC AND SHORT ON SPECIFICS THE PARTIES PLEDGED TO CONTINUE THE LDP'S FOREIGN AND DEFENSE POLICIES TO STIMULATE JAPAN'S LAGGING ECONOMY AND TO REASSURE JAPAN'S ANXIOUS ASIAN NEIGHBORS BY REFLECTING ON JAPANESE AGGRESSION DURING WORLD WAR II MANY POLITICIANS SAY THEY EXPECT THE LANKY SOFTSPOKEN MR HOSOKAWA TO BECOME THE PUPPET OF OTHER POWERS IN HIS ALLIANCE DETRACTORS CALL HIM VAGUE AND INDECISIVE MR HOSOKAWA'S JAPAN NEW PARTY THEY NOTE HAS ONLY 36 SEATS IN THE LOWER HOUSE OF PARLIAMENT OR LESS THAN ONEFIFTH OF THE COALITION'S STRENGTH THEY CONCLUDE THAT HE WILL BE MERELY A TRANSITIONAL FIGURE LASTING ONLY UNTIL THE COALITION DISSOLVES PROBABLY AFTER IT PASSES ITS POLITICAL REFORMS BUT IT'S EASY TO UNDERESTIMATE MR HOSOKAWA WHO HAS SUCCESSFULLY PAINTED HIMSELF AS AN INNOCENT REFORMER IN A CORRUPT CYNICAL SYSTEM DURING THE CAMPAIGN MR HOSOKAWA TOLD HIS SUPPORTERS HE WOULDN'T DIRTY HIMSELF BY JOINING A NEW GOVERNMENT EVEN WITH ANTILDP FORCES HE CONCLUDED A LONG MAGAZINE ESSAY IN JUNE BY DECLARING THAT HE HOPED TO CHANGE POLITICS WITHOUT SUCCUMBING TO A CULTURE OF POLITICAL PROFESSIONALS' INTRIGUING ONLY TO GAIN POWER SINCE THE JULY 18 VOTE HOWEVER MR HOSOKAWA HAS PLAYED HIS HAND LIKE AN OLD PRO WHILE THE COALITION'S OTHER PARTIES QUICKLY UNITED AGAINST THE LDP MR HOSOKAWA HUNG BACK IT SOON BECAME CLEAR THE ALLIANCE COULDN'T TAKE POWER WITHOUT HIM MR HOSOKAWA REMAINED ALOOF UNTIL THE COALITION CONSENTED TO HIS PLATFORM FOR POLITICAL REFORM AND THEN AGREED TO MAKE HIM ITS CANDIDATE FOR PRIME MINISTER 9307300120 930730 MARKETING & MEDIA DISNEY POSTS SOLID 3RDPERIOD RESULTS DESPITE A BIG DRAG BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO POSTED SOLID FISCAL THIRDQUARTER RESULTS DESPITE SLOW THEMEPARK GROWTH DIFFICULT COMPARISONS WITH LAST YEAR IN THE FILMEDENTERTAINMENT AREA AND A LOSS FROM ITS INVESTMENT IN EURO DISNEY FOR THE QUARTER ENDED JUNE 30 NET INCOME ROSE 17 TO 2591 MILLION OR 48 CENTS A SHARE FROM 2208 MILLION OR 41 CENTS A SHARE THE YEAR BEFORE WITHOUT THREE ACCOUNTING CHANGES NET WOULD HAVE BEEN 2427 MILLION OR 45 CENTS A SHARE UP 10 FROM THE YEAR EARLIER REVENUE ROSE 3 TO 194 BILLION FROM 188 BILLION THE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DISNEY SHARES CLOSED AT 38625 DOWN 1125 VOLUME TOTALED ABOUT 23 MILLION ALMOST DOUBLE THE DAILY AVERAGE OF 14 MILLION SHARES TWO OF THE ACCOUNTING CHANGES MANDATED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD INVOLVED POSTRETIREMENT BENEFITS THAT ACCOUNTED FOR A NINEMONTH CHARGE OF 1303 MILLION PARTLY OFFSET BY A CREDIT OF 30 MILLION RELATED TO ACCOUNTING FOR INCOME TAXES THE THIRD CHARGE RELATED TO CHANGING TO A MORE CONSERVATIVE METHOD OF ACCOUNTING FOR PROJECTRELATED PREOPENING COSTS TAKING THEM AS EXPENSES AS THEY OCCUR RATHER THAN OVER A PERIOD OF AS LONG AS FIVE YEARS THIS LAST CHANGE RESULTED IN A ONETIME CHARGE FOR THE FIRST NINE MONTHS OF 2712 MILLION OR 50 CENTS A SHARE MOSTLY ATTRIBUTABLE TO THE COMPANY'S 49 EQUITY INVESTMENT IN EURO DISNEY THE ACCOUNTING CHANGES WERE ALL RETROACTIVE TO OCT 1 IN THE FIRST NINE MONTHS NET AFTER A CHARGE OF 3715 MILLION FOR THE CUMULATIVE EFFECT OF THE ACCOUNTING CHANGES DROPPED 36 TO 3776 MILLION OR 69 CENTS A SHARE FROM 593 MILLION OR 111 A SHARE THE YEAR BEFORE REVENUE ROSE 17 TO A RECORD 635 BILLION FROM 543 BILLION THE COMPANY SAID THEMEPARK ATTENDANCE IN THE QUARTER INCREASED SLIGHTLY FROM LAST YEAR THE BIGGEST BOOST COMING AT DISNEYLAND IN CALIFORNIA WHERE THE NEW ATTRACTION TOON TOWN INCREASED TRAFFIC YEARAGO ATTENDANCE WAS HURT BY THE LOS ANGELES RIOTS IN THE FILMEDENTERTAINMENT SECTOR DISNEY HAD STRONG FISCAL 1992 COMPARISONS TO TRY TO OVERCOME HELPED BY A SUCCESSFUL TELEVISION UNIT THE SEGMENT MANAGED TO BOOST OPERATING PROFIT 1 GROWTH IN THE CONSUMERPRODUCTS AREA CONTINUED TO BE SUBSTANTIAL OPERATING PROFIT ROSE 19 THE COMPANY'S INVESTMENT IN THE TROUBLED EURO DISNEY RESORT RESULTED IN A LOSS OF 309 MILLION FOR THE QUARTER AND 1001 MILLION FOR THE NINE MONTHS DISNEY SAID IT EXPECTS EURO DISNEY ALSO TO BE A DRAG ON FOURTHQUARTER EARNINGS 9307300119 930730 LEISURE & ARTS ON SPORTS BIKE RIDE FROM HELL BY DOUGLAS GANTENBEIN MARKLEEVILLE CALIF ABOUT 75 MILES INTO THE PIQUANTLY NAMED DEATH RIDE TOUR OF THE CALIFORNIA ALPS I IDLY LOOKED DOWN AT THE FRONT WHEEL OF MY BICYCLE AND NOTICED SOMETHING ODD THE LEVER THAT LOOSENS THE BRAKE CALIPERS TO EASE WHEEL REMOVAL WAS COMPLETELY OPEN IN OTHER WORDS NO FRONT BRAKES I THOUGHT THEY'D FELT A BIT MUSHY THIS INTERESTING OBSERVATION CAME AS I SCREAMED DOWN THE THIRD OF FIVE PASSES DURING THIS ANNUAL RIDE THROUGH THE MOUNTAINS SOUTH OF LAKE TAHOE HITTING 50 MILES AN HOUR WHILE MANEUVERING SWITCHBACKS UNENCUMBERED BY GUARDRAILS A QUICK FLICK OF THE LEVER REMEDIED THE PROBLEM IF THE REAR BRAKES HAD BEEN AFFLICTED I PROBABLY WOULD HAVE SAILED OFF INTO SPACE AT THE FIRST TIGHT DOWNHILL CORNER AFTER CRESTING 8314FOOT MONITOR PASS MOMENTARILY FEELING FORTUNATE I BIKED ON THE DEATH RIDE FIVE PASSES 15150 FEET OF UPHILL BIKING 1285 MILES NOW IN ITS 15TH YEAR THE DEATH RIDE GOT ITS START IN 1978 A GROUP OF HARDCORE RIDERS WHOSE IDEA OF A VACATION WAS TO SPEND A FEW WEEKS EACH YEAR ON THE TOUGHEST RIDES THEY COULD FIND FASHIONED A TOUR FOR BICYCLISTS BY STRINGING TOGETHER THE FIVE PASSES AROUND THIS TINY ALPINE COUNTY TOWN POPULATION 150 SEVENTEEN RODE THAT FIRST YEAR 12 FINISHED THIS YEAR'S RIDE HELD EARLIER THIS MONTH DREW 2750 RIDERS 1100 FINISHED A PARTIAL TOUR OF THE ROUTE BY CAR WITH MY BROTHER RICH THIS WAS HIS IDEA THE DAY BEFORE THE TOUR HAD LEFT ME BUGEYED THE FIVE CLIMBS OF 3000 FEET OR MORE EACH WERE PARTICULARLY INTIMIDATING SINCE THE BIGGEST HILL I COULD FIND ON MY TRAINING RIDES AROUND SEATTLE WAS A MEASLY 1000FOOTER THE WEEK BEFORE THE RIDE I MOUNTED A GEAR WITH 28 TEETH THE LOWEST IT WOULD TAKE ON MY MERCKX BICYCLE BUT BY THE TIME WE'D GOTTEN TO THE HOTEL AFTER OUR SCOUTING TRIP I HAD LITTLE CONFIDENCE THAT WOULD BE ENOUGH SCRAPPING PRERIDE REGIMENS I GLOOMILY GULPED TWO GLASSES OF CABERNET WITH MY PASTA VERY ROUGHLY THE COURSE IS SET WITHIN AN ENORMOUS BOWL OF SALTANDPEPPER GRANITE MOUNTAINS AND PINE FORESTS WITH MARKLEEVILLE AT THE BOTTOM OF THE BOWL AFTER A SHORT DESCENT ALONG WOLF CREEK THE FIRST PASS MONITOR ELEVATION 8314 FEET LOOMS THE ROAD THEN SPILLS OVER THE EDGE OF THE BOWL BARRELING DOWN TO HIGHWAY 395 NEAR THE NEVADA BORDER THEN OVER MONITOR PASS AGAIN AND BACK IN THE BOWL TO STAY EBBETTS PASS FOLLOWS AT 8730 FEET THEN IT'S BACK THROUGH MARKLEEVILLE AT 5500 FEET UP HIGHWAY 88 AND NARROW WOODFORDS CANYON TO LUTHER PASS 7740 FEET AND FINALLY CARSON PASS 8573 FEET PATH OF THE FIRST CALIFORNIA IMMIGRANTS BY 5 AM SATURDAY THE PARKING LOT AT TURTLE ROCK STATE PARK THE STARTING POINT IS SWARMING WITH CYCLISTS WE ARE TREATED TO A BREAKFAST OF SCRAMBLED EGGS PANCAKES AND ORANGE JUICE SERVED UP BY CORPS OF VOLUNTEERS WEARING LOUD FUCHSIA TSHIRTS WITH DEATH SQUAD EMBLAZONED ACROSS THE BACK AT 615 WITH THE SUN SKIMMING THE MOUNTAINS ABOVE WE HEAD OUT A FEW MILES OUT OF MARKLEEVILLE THE ROAD FORKS AND HEADS LEFT UP TO MONITOR AN AMBULANCE IS PARKED AT THE JUNCTION NOT A GOOD SIGN HERE WE GO RICH SAYS SHIFTING DOWN CONVERSATION ALMOST IMMEDIATELY STOPS AND THE ONLY SOUNDS ARE SOFTLY GRINDING CHAINS AND THE SHARP EXHALATIONS OF RIDERS I HAVE AN ALTIMETER WATCH ON MY WRIST AND WATCH IT LIKE A HAWK WE CLIMB OUT OF THE CANYON PAST TANGLES OF CHAPARRAL FILLED WITH SHRIEKING LOCUSTS CATCHING AN OCCASIONAL GLIMPSE OF BIKERS FAR AHEAD AND FAR ABOVE US LABORING UP THE SLOPE SEVEN THOUSAND FEET 8000 A SHORT STRAIGHTAWAY THEN THE TOP A KNOT OF CYCLISTS LOOKING LIKE BIZARRE INSECTS IN THEIR HARD PLASTIC HELMETS AND REFLECTIVE SUNGLASSES ARE REFILLING WATER BOTTLES AND DEVOURING BUNCHES OF GRAPES AT THE FIRST REST STOP ONE DOWN THE FIRST DESCENT FROM MONITOR IS LIKE STEPPING OFF A CLIFF BUT ANY COMPLAINTS ABOUT THE DOWNHILL GRADE ARE FORGOTTEN WHEN I REACH THE TURNAROUND AT HIGHWAY 395 AND REALIZE THAT I WILL NOW HAVE TO CLAMBER MY WAY BACK UP THE MOUNTAIN RICH OFFERS THE DISCOURAGING BIT OF MATHEMATICS THAT WE'LL BE ON THE RELENTLESS GRADE FOR THE BETTER PART OF TWO HOURS TO COVER THE 12 MILES BACK TO MONITOR PASS NEAR THE TOP A RIDER SITS NEAR A THICKET OF SAGEBRUSH MUTTERING I'M DONE I'M DONE THE AMBULANCE ROARS BY HEADING DOWN THE HILL TWO PASSES COMPLETED TIME TO STOP FOR WATER AND POWER BARS DISGUSTING FLAT BRICKS OF CARBOHYDRATES AND FRUCTOSE THAT HAVE A TEXTURE LIKE PARTIALLY SET CEMENT BUT PROVIDE AN ASTONISHING AMOUNT OF ENERGY IT'S NOW CLOSE TO 11 YET WE HAVE BARELY 45 MILES UNDER OUR BELT WE MAKE EBBETTS PASS AFTER A BRUTAL CLIMB WITH SEVERAL 15 GRADES IT'S A LOVELY SPOT SET AMID SNOWBANKS AND DRIFTS OF SMOOTH GRANITE NOT EVERYONE IS ENJOYING THE VIEW THOUGH THE REST STOP IS RUNNING LOW ON WATER NEAR WHERE WE SIT AN ARGUMENT BREAKS OUT WHEN SOMEBODY ACCIDENTLY LEANS HIS BIKE AGAINST SOMEBODY ELSE'S 2000 DARLING EBBETTS PROVES TO BE THE UNDOING OF MANY A RIDER DOWN AT THE PARKING LOT SCORES OF THEM ARE LOADING UP THEIR BIKES RICH PACKS IT IN TOO HE HAS A CRAMP IN HIS SHOULDER I PRESS ON AT ONE POINT PASSING AN ELDERLY COUPLE SITTING IN THE SHADE OF A GROVE OF TREES NEAR THEIR FARMHOUSE WAVING AT US UP STILL MORE TO LUTHER PASS WHICH PROVES MERCIFULLY EASY FOUR PASSES DOWN ONE TO GO FINALLY CARSON PASS LIES AHEAD I LOBBY HEAVILY IN MY FANTASY LIFE FOR A SHORT CLIMB AND AM CRUSHED WHEN I ROLL AROUND A CORNER TO SEE THE ROAD TRAVERSE A ROCKY CLIFF A MILE AWAY AND DISAPPEAR AROUND A HIGH CORNER THE FINAL HALFMILE TO THE SUMMIT IS A BLUR RICH NOW ACCOMPANYING ME IN HIS CAR TAKES A QUICK PICTURE OF ME AT THE SUMMIT AND I ROCKET BACK DOWNHILL TO COURSE'S END TWELVE MILES LATER I OFF THE HIGHWAY FOR THE FINAL FOUR MILES TO MARKLEEVILLE CLIMBING A TINY HILL ONE I'D SCARCELY NOTICE UNDER NORMAL CIRCUMSTANCES IS SO DIFFICULT THAT I NEARLY PASS OUT BUT I DON'T AND I ACTUALLY FINISH THE DEATH RIDE THAT NIGHT OVER PIZZA IN AN ITALIAN RESTAURANT NEAR OUR HOTEL RICH DELIVERS AN ULTIMATUM IF I EVER GET AN IDEA LIKE THIS AGAIN HE INTONES TAKE ME OUT BACK AND SHOOT ME I AGREE AND OFFER TO SAVE A BULLET FOR MYSELF ALAS THE HUMAN BODY'S ABILITY TO RECALL PAIN PROVES TRULY PATHETIC THE NEXT MORNING AT OUR NEVADA HOTEL AFTER AN EVENING AT THE QUARTER SLOTS AND A SOUND SLEEP RICH GIVES ME A LOOK AS HE LOADS OUR BIKES INTO THE BACK OF HIS FORD EXPLORER I WAS JUST THINKING HE CONFESSES SHEEPISHLY ABOUT HOW I'D TRAIN FOR THIS NEXT YEAR MR GANTENBEIN IS A WRITER IN SEATTLE 9307300118 930730 KIRIN BREWERY POSTS PRETAX PROFIT INCREASE OF 79 IN FIRST HALF TOKYO KIRIN BREWERY CO JAPAN'S LARGEST BEER BREWER REPORTED THAT CONSOLIDATED PRETAX PROFIT FOR THE FIRST HALF JUMPED 79 FROM A YEAR EARLIER MAINLY ON A SALES SURGE IN ITS PHARMACEUTICALS DIVISION PRETAX PROFIT TOTALED 3462 BILLION YEN 3274 MILLION UP FROM 3209 BILLION YEN NET INCOME ROSE 53 TO 1461 BILLION YEN FROM 1388 BILLION YEN TOTAL SALES EDGED UP 11 TO 61651 BILLION YEN FROM 60977 BILLION YEN KIRIN LOWERED ITS CONSOLIDATED FORECAST FOR THE YEAR PREDICTING PRETAX PROFIT TO TOTAL 80 BILLION YEN COMPARED WITH A FORECAST OF 83 BILLION YEN LAST YEAR THE COMPANY POSTED PRETAX PROFIT OF 8271 BILLION YEN FOR THE HALF PHARMACEUTICAL SALES SKYROCKETED 71 TO 1289 BILLION YEN FROM 753 BILLION YEN A YEAR EARLIER KIRIN MARKETS TWO PHARMACEUTICALS ESPO AND GRAN KIRIN'S BEER SALES REPRESENTING NEARLY 97 OF ALL SALES INCHED UP 04 TO 59687 BILLION YEN FROM 59469 BILLION YEN SALES OF OTHER PRODUCTS DROPPED 11 TO 674 BILLION YEN FROM 755 BILLION YEN WITHIN THE CATEGORY FOOD PRODUCT SALES SLUMPED 53 TO 197 BILLION YEN FROM 208 BILLION YEN KIRIN COMPLETED ITS 15TH BREWERY IN MAY AND RECENTLY OPENED A DISTRIBUTION CENTER IN YOKOHAMA NEAR TOKYO 9307300117 930730 ECONOMY CLINTON ENDORSES BILL DESIGNED TO LIMIT INSURANCE FIRMS' ANTITRUST EXEMPTIONS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION ENDORSED LEGISLATION DESIGNED TO LIMIT THE INSURANCE INDUSTRY'S EXEMPTIONS FROM FEDERAL ANTITRUST LAWS THE ENDORSEMENT OF THE MEASURE WHICH HAS BEEN CONSIDERED FOR SEVERAL YEARS IS ONE INDICATION THE CLINTON ADMINISTRATION FAVORS A MORE ACTIVIST APPROACH TO ANTITRUST MATTERS THAN ITS REPUBLICAN PREDECESSORS WHICH DIDN'T TAKE A FIRM POSITION ON THE ISSUE CLINTON ADMINISTRATION BACKING OF THE BILL MAKES ITS EVENTUAL PASSAGE LIKELY IN TESTIMONY BEFORE THE HOUSE JUDICIARY COMMITTEE ANNE BINGAMAN THE ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID THAT NARROWING THE EXEMPTION IS CONSISTENT WITH THE NORMAL PRESUMPTION THAT AN INDUSTRY FUNCTIONS MORE EFFICIENTLY AND IN THE INTERESTS OF CONSUMERS WITHOUT ANTITRUST EXEMPTIONS THAT PERMIT POTENTIALLY ANTICOMPETITIVE CONDUCT THE BILL WOULD REDUCE THE ANTITRUST EXEMPTIONS PROVIDED UNDER THE MCCARRANFERGUSON ACT OF 1945 WHICH LEFT THE REGULATION OF INSURANCE COMPANIES TO THE STATES AND GENERALLY PUT THE INDUSTRY BEYOND THE REACH OF FEDERAL ANTITRUST LAWS THE INSURANCE COMPETITION PRICING ACT OF 1993 THE SUBJECT OF YESTERDAY'S HEARING WOULD ALLOW THE JUSTICE DEPARTMENT TO CHALLENGE INSURANCE COMPANIES AS IT DOES OTHER INDUSTRIES IF THEY ENGAGE IN BEHAVIOR THAT COULD REDUCE COMPETITION OR RAISE PRICES UNFAIRLY IT IS PAINFULLY OBVIOUS SAID COMMITTEE CHAIRMAN JACK BROOKS D TEXAS THAT THE LEGISLATION IS A COMPROMISE BILL DRAFTED TO AVOID THE MORE RADICAL CHANGES STRONGLY ADVOCATED BY SOME FOR INSTANCE THE LEGISLATION WOULD ALLOW INSURANCE COMPANIES TO CONTINUE TO SHARE HISTORICAL AND CLAIMLOSS DATA IN ADDITION THE MEASURE WOULD ALLOW FEDERAL OFFICIALS TO ATTACK PRICEFIXING IN THE INSURANCE INDUSTRY BUT EVEN THEN FEDERAL ACTION WOULD DEFER TO STATE REGULATION IF A STATE ACTIVELY SUPERVISED RATE SETTING AMONG ITS INSURANCE COMPANIES FEDERAL OFFICIALS WOULDN'T INTERFERE ERIC GUSTAFSON PRESIDENT OF THE INDEPENDENT INSURANCE AGENTS OF AMERICA TESTIFIED AGAINST THE BILL ARGUING THAT IT WOULD DISPROPORTIONATELY DISADVANTAGE THE SMALL BUSINESSES HE REPRESENTS THE LEGISLATION FOR EXAMPLE WOULD PROHIBIT COMPANIES FROM SHARING PROJECTED LOSS ESTIMATES AND SMALL COMPETITORS MR GUSTAFSON CLAIMED AREN'T ABLE TO DEVELOP SUCH ESTIMATES DEPENDABLY ON THEIR OWN THOSE PROJECTIONS CALLED TRENDING HELP ENSURE INSURERS' SOLVENCY BY ACCURATELY ACCOUNTING FOR FUTURE COSTS OF CLAIMS HE ADDED LINDA LIPSEN CONSUMER UNION LEGISLATIVE DIRECTOR PRAISED THE BILL NOW SHE SAID A HODGEPODGE OF 50 STATE LAWS IS ALL THAT PROTECTS CONSUMERS FROM INSURANCE INDUSTRY MARKET ABUSES CONSUMERS DON'T UNDERSTAND WHY IF IT IS ILLEGAL FOR AREA GROCERS TO FIX THE PRICE OF MEAT WHY SHOULD IT BE LEGAL FOR INSURERS TO OPERATE IN THE SAME MANNER 9307300116 930730 TWO CHINESE AIRLINES MAY FACE RETALIATION IN SHIPPING DISPUTE WASHINGTON THE CLINTON ADMINISTRATION HAS THREATENED RETALIATORY ACTION AGAINST TWO CHINESE AIRLINES FOR ALLEGEDLY TRYING TO SHUT OUT A US CARGO CARRIER FROM THE GROWING USCHINA SHIPPING MARKET DEPARTMENT OF TRANSPORTATION OFFICIALS SAID BEIJING'S AIR CHINA AND SHANGHAI'S CHINA EASTERN AIRLINES ENGAGED IN UNFAIR COMPETITIVE PRACTICES AGAINST EVERGREEN INTERNATIONAL AIRLINES A CLOSELY HELD CARGO CARRIER BASED IN MCMINNVILLE ORE THE US IS THREATENING TO PROHIBIT THE CHINESE AIRLINES FROM MAKING ALLCARGO FLIGHTS TO AND FROM THE US THE MOVE PARTLY REFLECTS AN EFFORT BY THE ADMINISTRATION TO FLEX ITS MUSCLES IN THE DAYS BEFORE TALKS OPEN WITH JAPANESE OFFICIALS TO RESOLVE A DISPUTE OVER US PASSENGER AIRLINES' ACCESS TO ASIA THROUGH TOKYO EVERGREEN FILED A COMPLAINT LAST MONTH CLAIMING THAT THE CHINESE AIRLINES HAD THREATENED TO DENY SHIPPERS ACCESS TO CARGO FLIGHTS TO OTHER COUNTRIES IF THE SHIPPERS USED EVERGREEN EVERGREEN ALSO SAID THE CHINESE AIRLINES TOLD FREIGHT FORWARDERS THAT NONCHINESE AIRLINES COULD GET NO MORE THAN 30 OF THE FREIGHT FROM CHINA THE CHINESE AIRLINES WHICH HAVE DENIED EVERGREEN'S ALLEGATIONS HAVE 10 DAYS TO RESPOND TO THE PROPOSED SANCTIONS 9307300115 930730 CONSULTANT TO RORER ON RHONEPOULENC SALE FACES CHARGES BY SEC WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED A FORMER PERSONNEL CONSULTANT OF PROFITING FROM INSIDE INFORMATION IN THE 1990 ACQUISITION OF RORER GROUP INC BY RHONEPOULENC SA IN A COMPLAINT FILED IN FEDERAL COURT IN CONNECTICUT THE SEC IS SEEKING 18724 IN ALLEGEDLY ILLEGAL PROFITS FROM EDMUND B PICCOLINO OF DARIEN CONN A FORMER PARTNER IN THE PERSONNEL CONSULTING FIRM RETAINED BY RORER FOR ADVICE ABOUT THE DEAL THE ACQUISITION OF THE PENNSYLVANIA PHARMACEUTICAL CONCERN BY THE FRENCH DRUG AND CHEMICAL COMPANY WAS PLAGUED BY ALLEGATIONS OF INSIDER TRADING FROM THE BEGINNING IN FACT THE SEC'S FIRST CHARGES WERE FILED IN FEDERAL COURT IN NEW YORK BEFORE RORER HAD EVEN DISCLOSED ITS SUITOR IN THAT CASE THE SEC CHARGED THREE FOREIGN FIRMS AND A SWISS INVESTOR WITH INSIDER TRADING ONE OF THOSE DEFENDANTS HAS SETTLED AGREEING TO GIVE UP 15 MILLION IN PROFITS IN THIS CASE THE SEC ALLEGES THAT MR PICCOLINO ACTED ON HIS KNOWLEDGE OF THE IMPENDING ACQUISITION AND PURCHASED 20 CALL OPTIONS WHICH ENABLE THE HOLDER TO BUY COMMON STOCK AT A SPECIFIED PRICE WITHIN A CERTAIN TIME THE SEC ALLEGES THAT MR PICCOLINO SOLD THE CALL OPTIONS ON THE DAY THAT RORER ANNOUNCED IT WAS IN TALKS WITH RHONEPOULENC NEITHER MR PICCOLINO NOR HIS LAWYER COULD BE REACHED FOR COMMENT 9307300114 930730 QUAKER STATE HALVES DIVIDEND SETS BUYBACK OIL CITY PA IN HIS FIRST MAJOR MOVE TO REV UP THE MOTOR OIL PRODUCER'S PERFORMANCE QUAKER STATE CORP'S NEW CHIEF EXECUTIVE OFFICER ANNOUNCED A HALVING OF THE DIVIDEND AND SAID THE COMPANY AUTHORIZED A BUYBACK OF ITS STOCK QUAKER STATE HAS PAID OUT MORE IN DIVIDENDS THAN IT HAS EARNED FOR THE PAST SIX YEARS SAID HERBERT M BAUM THE FORMER CAMPBELL SOUP CO EXECUTIVE TAPPED AS THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE IN MIDJUNE NO COMPANY CAN CONTINUE TO PAY DIVIDENDS IN EXCESS OF ITS EARNINGS AND AT THE SAME TIME BUILD LONGTERM SHAREOWNER VALUE THE DIVIDEND REDUCTION TO 10 CENTS A SHARE QUARTERLY FROM 20 CENTS WILL REDUCE EXPENSES BY ABOUT 109 MILLION ANNUALLY THE SAVINGS WILL BE USED TO ACCELERATE AGGRESSIVE REBUILDING OF THE COMPANY'S BATTERED QUAKER STATE BRAND WHOSE MARKET SHARE FELL TO UNDER 14 IN 1990 FROM 22 IN THE EARLY 1980S IN A STATEMENT MR BAUM SAID DIRECTORS HAD DETERMINED THAT A DIVIDEND PAYOUT RATIO OF ABOUT 40 TO 50 OF EARNINGS WAS MORE REALISTIC IN 1992 THE COMPANY REPORTED A LOSS OF 939 MILLION OR 345 A SHARE INCLUDING AN ACCOUNTING CHARGE AND A LOSS FROM DISCONTINUED COAL OPERATIONS EXCLUSIVE OF THE CHARGES EARNINGS FROM CONTINUING OPERATIONS WERE 94 MILLION OR 35 CENTS A SHARE ON REVENUE OF 7244 MILLION THE COMPANY AUTHORIZED THE BUYBACK OF AS MANY AS TWO MILLION OF THE 272 MILLION SHARES OUTSTANDING IF AND WHEN DEEMED ADVISABLE THE NEWS WAS ANNOUNCED ABOUT AN HOUR BEFORE THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE QUAKER STATE'S STOCK FELL 125 OR 9 TO 1275 9307300113 930730 REVIEW & OUTLOOK EDITORIAL JAPAN'S EIGHTPARTY WONDER GIVEN THE RECENT FAD OF ENVISIONING THE JAPANESE AS 10 FEET TALL AMERICANS OUGHT TO KEEP AN EYE ON THE ONGOING POLITICAL DRAMA IN TOKYO EIGHT DISPARATE POLITICAL PARTIES HAVE NOW BANDED TOGETHER TO PREVENT THE LIBERAL DEMOCRATIC PARTY FROM CONTINUING ITS 38YEAR TENURE IN OFFICE LIKE MOST OF THE WORLD JAPAN'S CITIZENS HAVE GROWN IMPATIENT WITH GOVERNMENT AND THEY HAVE FINALLY MANAGED TO DO WHAT DEMOCRACIES ARE SUPPOSED TO TOSS THE RASCALS OUT IT'S HARD TO IMAGINE THAT THE NEW COALITION IS GOING TO HAVE A CHANCE TO GROW OLD THE ONLY COMMON GROUND IS THAT THEY ARE NONE OF THEM THE LDP AND OF COURSE A GOOD MANY OF THE MOST PROMINENT COALITION LEADERS COULD NOT HAVE SAID EVEN THAT SIX WEEKS AGO THE IDEOLOGICAL DIFFERENCES AMONG THE COALITION ARE WIDER THAN BETWEEN MANY OF ITS CONSTITUENT PARTIES AND THE LDP AND CANNOT BE FUDGED FOREVER YET A SHORTLIVED GOVERNMENT IS NOT NECESSARILY A BAD THING AND SHOULD AT LEAST BE INTERESTING ESPECIALLY SO SINCE AS ITS LEADER THE COALITION HAS CHOSEN MORIHIRO HOSOKAWA JAPAN'S BESTKNOWN POLITICAL REVOLUTIONARY MR HOSOKAWA WHO CAN TRACE HIS LINEAGE BACK TO A 14THCENTURY FEUDAL LORD IS A FORMER MEMBER OF THE LDP AND A FORMER GOVERNOR JUST OVER A YEAR AGO HE FORMED THE REFORMIST JAPAN NEW PARTY AND IMMEDIATELY WON A SEAT IN THE UPPER HOUSE OF THE DIET HIS PARTY HAS LED THE FIGHT AGAINST POLITICAL CORRUPTION REFUSING TO ACCEPT CORPORATE DONATIONS AND CALLING FOR THE DEVOLUTION OF POWER TO LOCAL GOVERNMENTS ONE OF HIS FAVORITE STORIES CONCERNS THE DIFFICULTY HE HAD AS GOVERNOR OF THE KUMAMOTO PREFECTURE WHEN HE HAD TO BATTLE THE TOKYO BUREAUCRACY IN ORDER TO GET PERMISSION TO MOVE A LOCAL BUS STOP A FEW FEET HE IS TELEGENIC AND AT 55 YOUNG BY JAPANESE POLITICAL STANDARDS IF HE'S NAMED PRIME MINISTER NEXT WEEK AS EXPECTED HE WILL BE THE FIRST JAPANESE PRIME MINSTER OF THE POSTWAR GENERATION THE NEW GOVERNMENT MR HOSOKAWA WILL HEAD WILL REPRESENT ONLY THE FIRST INNING OF WHAT WILL PROVE TO BE A LONG AND CLOSELY FOUGHT GAME SINCE THE LDP BEGAN ITS WINNING STREAK IN 1955 JAPAN HAS NEVER HAD THE BRISK POLITICAL COMPETITION THAT FORCES GOVERNMENT TO RESPOND TO VOTERS' DEMANDS THE MOST LIKELY SCENARIO IS THAT THE COALITION WILL PASS A POLITICAL REFORM PACKAGE THEN CALL A NEW ELECTION IF THIS HAPPENS SOME OF THE NEWER PARTIES CAN BE EXPECTED TO CONSOLIDATE PERHAPS EVEN PICKING UP A FEW MORE STRAY SHEEP FROM THE LDP FOLD THE SOCIALISTS WHO WERE PREVIOUSLY THE LARGEST OPPOSITION PARTY BUT MANAGED TO MARGINALIZE THEMSELVES WITH EXTREME VIEWS WILL WITHER AWAY INTO THE OBSCURITY THEY SO RICHLY DESERVE THE END RESULT WILL BE A GIVEANDTAKE BETWEEN TWO BASICALLY CENTRIST ENTITIES THAT WILL FIGHT IT OUT OVER ISSUES IMPORTANT TO JAPANESE QUALITY OF LIFE INTERNATIONAL STANDING AND THE ECONOMY THAT IS THE LONGTERM VIEW IN THE SHORT TERM AND EVEN CONSIDERING THE NEED TO PAPER OVER CONSIDERABLE DIFFERENCES WE ARE A BIT DISAPPOINTED IN THE PLATFORM OF THE COALITION IN PARTICULAR IT COULD HAVE DISTANCED ITSELF QUICKLY FROM ITS DISCREDITED PREDECESSOR BY GIVING A LITTLE ON THE ISSUE OF RICE IMPORTS INSTEAD ONE OF THE FEW THINGS IT MADE CLEAR IS THAT JAPAN WHILE SUPPORTING THE SUCCESSFUL CONCLUSION OF THE GATT ROUND WOULD CONTINUE TO OPPOSE RICE IMPORTS THE COALITION ALSO PROMISED NO MORE THAN TO THINK HARD ABOUT TAX CUTS SOUNDS A LOT LIKE THE LDP DOESN'T IT MORE BROADLY ONE OF THE LESSONS OF THE RECENT ELECTION CAMPAIGN WAS THAT THERE IS SUBSTANTIAL SUPPORT FOR A NEW WAY OF DOING BUSINESS NOT ONLY AMONG VOTERS BUT IN THE CORPORATE COMMUNITY TIRED OF ITS PAST RELIANCE ON THE IRON TRIANGLE OF BIG BUSINESSBUREAUCRACYLDP IT LOOKS AS IF THIS OPPORTUNITY IS BEING IGNORED IN THE DESIRE TO PUT TOGETHER A LOWEST COMMON DENOMINATOR OF CONSENSUS WE THINK THAT WHEN JAPANESE VOTERS KICKED OUT THE LDP RASCALS THEY HAD MORE ON THEIR MIND THAN KICKING IN PEOPLE WHO SOUND MUCH THE SAME THE JAPANESE ELECTORATE IS LIKELY TO SHARE THE PRESENT FRUSTRATION OF CITIZENS THROUGHT THROUGHOUT THE DEMOCRATIC WORLD AND FOR THAT MATTER BEYOND IT THE INABILITY OF ESTABLISHED INSTITUTIONS TO PRODUCE CHANGE ALSO LIES AT THE CURRENT HEART OF AMERICAN POLITICAL PROTEST EXPRESSED IN THE PEROT MOVEMENT CONGRESSIONAL SCANDALS AND THE LOW STANDING OF THE NEWLY ELECTED CLINTON ADMINISTRATION EUROPE'S LONGESTABLISHED DEMOCRACIES SHOW THE SAME TRENDS AND AUTHORITARIAN GOVERNMENTS ARE ALSO SHAKING AS IN CUBA IN AN AGE OF RAPID CHANGE AND INSTANT COMMUNICATIONS PEOPLE EVERYWHERE ARE VIEWING GOVERNMENTS AS PROBLEMS RATHER THAN SOLUTIONS ONE LESSON IN TOKYO IS THAT CONTRARY TO THE IMAGINATION OF SOME AMERICANS THE JAPANESE SYSTEM OF GOVERNMENT DOESN'T HAVE ALL THE ANSWERS EITHER THE SOLUTION TO THE CURRENT PREDICAMENT OF GOVERNMENT IN OUR VIEW IS NOT LESS DEMOCRACY BUT MORE DEMOCRACY EMPOWERING PEOPLE TO MAKE THEIR OWN DECISIONS THROUGH BOTH THE BALLOT BOX AND MARKETPLACE SO WE VIEW THE POLITICAL TURMOIL IN TOKYO AS A HOPEFUL SIGN OF EVOLUTION TOWARD THE KIND OF DEMOCRACY WE WOULD ALL LIKE TO SEE ABROAD AND AT HOME 9307300112 930730 CORRECTIONS & AMPLIFICATIONS BAKER & TAYLOR INC IS A PRIVATELY HELD COMPANY BASED IN STAMFORD CONN AN ARTICLE JULY 13 INCORRECTLY LISTED THE COMPANY AS A UNIT OF WR GRACE CO BAKER & TAYLOR WAS ACQUIRED FROM WR GRACE IN MARCH 1992 BY SENIOR MANAGEMENT AND THE CARLYLE GROUP XEROX CORP'S FINANCE SUBSIDIARY SIGNED A LETTER OF INTENT TO SELL FURMAN SELZ HOLDING CORP TO ITS MANAGEMENT FURMAN'S NAME WAS MISSPELLED IN AN ARTICLE YESTERDAY A TEST FOR COLLEGE STUDENTS PROPOSED BY THE NATIONAL EDUCATION GOALS PANEL WOULD BE INTENDED TO MEASURE PROGRESS TOWARD CERTAIN EDUCATION GOALS AND NOT TO SET STANDARDS AS INCORRECTLY STATED IN AN ARTICLE JULY 28 IN THE SAME ARTICLE SAL CORRALLO PROJECT DIRECTOR FOR THE EDUCATION DEPARTMENT'S NATIONAL CENTER FOR EDUCATION STATISTICS WAS INCORRECTLY IDENTIFIED AS PROJECT DIRECTOR FOR THE PANEL CITY NATIONAL CORP'S SECONDQUARTER EARNINGS OF 11 CENTS A SHARE WERE BELOW THE AVERAGE OF FOUR ANALYSTS' ESTIMATES OF 12 CENTS A SHARE RESULTING IN A NEGATIVE EARNINGS SURPRISE OF 833 BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE CITY NATIONAL WAS INCORRECTLY SHOWN AS A 5217 NEGATIVE SURPRISE IN THE JULY 16 QUARTERLY EARNINGS SURPRISES TABLE TWO MUTUAL FUNDS TRIPLE A GOVERNMENT 1995 AND TRIPLE A GOVERNMENT 1997 WERE INCORRECTLY INCLUDED IN THE BOTTOM 10 PERFORMERS SECTION OF THE JULY 23 CLOSEDEND BOND MUTUAL FUND SCORECARD DUE TO AN ERROR BY LIPPER ANALYTICAL SERVICES INC THE CORRECT TOTAL RETURNS FOR THE 12 MONTHS ENDED JUNE 30 WERE 596 AND 723 RESPECTIVELY NOT 080 AND 110 AS SHOWN IN THE SCORECARD BOTH FUNDS ARE MANAGED BY PAINEWEBBER INC 9307300111 930730 MARKETING & MEDIA QVC UNVEILS PLANS FOR Q2 TV SERVICE TAILORED TO HOMESHOPPERS' LIFESTYLES BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A BID TO BROADEN ITS APPEAL TO A MORE DIVERSE AND UPSCALE AUDIENCE QVC NETWORK INC UNVEILED LONG AWAITED PLANS FOR Q2 A NEW TELEVISION HOMESHOPPING SERVICE DEVOTED TO LIFESTYLES ONE OF A SMORGASBORD OF NEW CHANNELS ENVISIONED BY QVC CHAIRMAN BARRY DILLER Q2 WILL BE A CROSS BETWEEN A LIFESTYLE MAGAZINE AND A SPECIALTY STORE SAYS THE COMPANY AND WILL BE AIMED AT BUSY PEOPLE WHO HAVEN'T YET SHOPPED VIA TV THE NEW CHANNEL TO BE BASED IN NEW YORK AND LOS ANGELES IS SCHEDULED TO MAKE ITS DEBUT THIS SPRING TO RUN THE NEW Q2 MR DILLER TAPPED CANDICE M CARPENTER 41 YEARS OLD WHO BUILT THE TIMELIFE TELEVISION AND VIDEO DIVISION OF TIME WARNER INC WHERE SHE HAS WORKED SINCE 1989 THIS WILL BE COMPLETELY DIFFERENT THAN ANYTHING THAT'S OUT THERE SAID MS CARPENTER IT WILL BE TO HOME SHOPPING WHAT MTV IS TO MUSIC THE NEW QVC SERVICE WILL REPLACE QVC'S SECOND CHANNEL THE FASHION CHANNEL WHICH CURRENTLY REACHES ABOUT EIGHT MILLION SUBSCRIBERS QVC IN WEST CHESTER PA NOW REACHES ABOUT 44 MILLION HOMES THE NEW SERVICE IS PART OF AN EFFORT TO REALIGN SHOPPING CATEGORIES AND ATTRACT A WIDER AUDIENCE AS QVC PREPARES TO MERGE WITH ITS LARGEST TVRETAILING RIVAL HOME SHOPPING NETWORK INC LIBERTY MEDIA CORP COMCAST CORP AND MR DILLER WHO EFFECTIVELY CONTROL QVC ARE WAITING FOR REGULATORY APPROVAL FOR THEIR RECENT PROPOSED 14 BILLION STOCK MERGER WITH HOME SHOPPING SPECULATION IS MOUNTING IN THE MEDIA INDUSTRY OVER MR DILLER'S PLANS FOR THE PROPOSED MERGED TVSHOPPING BEHEMOTH WHICH COULD EFFECTIVELY GIVE THE FORMER FOX INC CHIEF CREATIVE CONTROL OF FIVE DIFFERENT HOMESHOPPING CHANNELS FOX IS A UNIT OF NEWS CORP THOUGH DECLINING TO GIVE SPECIFIC DETAILS MS CARPENTER SAID THAT ASIDE FROM A HIGHLY EDITED SELECTION OF PRODUCTS Q2 WILL ORGANIZE MERCHANDISE AROUND VERY SPECIFIC THEMES TO PROVIDE CREATIVE SOLUTIONS TO EVERYDAY PROBLEMS USING HOSTS WHO ARE AUTHORITIES IN THEIR PARTICULAR FIELD THE NEW CHANNEL WILL AIR PROGRAMMING TO HELP VIEWERS BUY A MOUNTAIN BIKE FOR EXAMPLE OR PUT TOGETHER A DINNER PARTY OR PLAN A TRIP TO THE HIMALAYAS TO DATE TV HOME SHOPPING HAS BEEN LIMITED TO A NARROW GROUP OF REPEAT CUSTOMERS TO WHOM THE TWO TV RETAILERS HAVE OFFERED AN ECLECTIC MIX OF JEWELRY CLOTHES AND CURIOS THE NEW SERVICE IS A DIRECT ATTEMPT TO MAKE HOME SHOPPING MORE AUDIENCE FRIENDLY TAILORING THE MERCHANDISING TO APPEAL TO SPECIFIC TASTES AND LIFESTYLES THIS IS THE FIRST BIG DILLER EFFORT IT'S HIS IMPRINT SAID CRAIG BIBB A MEDIA ANALYST WITH PAINEWEBBER HE WANTS TO REMAKE THE CONCEPT OF WHAT TV SHOPPING IS AND THEY NEED TO DO THAT TO PULL IN NEW USERS QVC'S NEW SERVICE APPARENTLY PLEASED WALL STREET YESTERDAY IN OVERTHECOUNTER TRADING QVC CLOSED AT 6950 A SHARE UP 175 9307300110 930730 REVIEW & OUTLOOK EDITORIAL PRODUCT AS POLITICS THIS SPRING THE FOLKS AT BENETTON PUT OUT ADS IN FRANCE THAT FEATURED COLOR PHOTOGRAPHS OF THE GENITALS OF 56 MEN WOMEN AND CHILDREN THE ADS WHICH WERE ACCEPTED ONLY BY THE FRENCH DAILY LIBERATION MAKE ONE WONDER FIRST WHO EXACTLY ARE THE PARENTS WHO LET THE BENETTON FAMILY HAVE COMMERCIAL ACCESS TO THEIR CHILDREN'S PRIVATE PARTS BUT THIS SORT OF AD ALSO INVITES QUESTIONS ABOUT WHAT HAPPENS WHEN A COMPANY TRIES TO SAVE THE WORLD AND MOVE PRODUCT AT THE SAME TIME THE BENETTON ETHOS IS DIFFERENT FROM THAT OF THE BODY SHOP OR BEN & JERRY'S WHOSE METHOD IS BASED ON THE NEW LEFT PRINCIPLE THAT NO GOOD DEED SHOULD GO UNPUBLICIZED THE LATTER COMPANIES HARKEN BACK TO THE SPIRIT OF 60S ACTIVISM WHICH MATCHES THE DEMOGRAPHICS OF THOSE WEARETHEWORLD PEOPLE WHO BUY UPSCALE ICE CREAM AND COSMETICS BENETTON'S ADS RELY ON SLICK IMAGES TO CONVEY THE IMPRESSION OF SOCIAL CONCERN ITS EXHORTATIONS ARE AT THE LEVEL OF THE SOCIALLY CONSCIOUS ART SCHOOL STUDENT THESE IMAGES WERE ALSO ON DISPLAY AT THE VENICE BIENNALE THE BENETTON SPOKESPERSON IN CHARGE OF EXPLAINING THE VARIOUS AD CAMPAIGNS WHO MUST HAVE THE MOST DIFFICULT JOB IN THE COMPANY SAID RECENTLY THAT THE CURRENT FRENCH IMAGES OF GENITALS ARE FIRST MEANT TO BREAK THE TABOO OF SEX SEX A TABOO WE HAVE HIT THE POINT WHERE THE WORD TABOO IS USED IN REFERENCE TO THAT WHICH IS TALKED ABOUT EVERYWHERE WITH THE UTMOST FRANKNESS IF THEY HAD WANTED TO SMASH THE SEX TABOO THEY SHOULD HAVE COME ALONG WITH OSCAR WILDE OR THE FRENCH AESTHETES OF THE PREWORLD WAR I DAYS WHO MARCHED UNDER THE BANNER SCANDAL IS SUCCESS WE'VE HAD FOUR GENERATIONS SINCE THEN AND BENETTON AND A WHOLE LOT OF OTHER LIKEMINDED PEOPLE ARE STILL TRYING TO SMASH THE SAME TABOOS THE POOR THINGS ARE TRAMPLED FLAT BY NOW THE SECOND REASON FOR THIS BENETTON AD ACCORDING TO THE COMPANY SPOKESPERSON IS THAT THIS PHOTO SHOWS WE ARE ALL EQUAL IF THEY WANTED TO DEMONSTRATE EQUALITY THEY SHOULD HAVE SHOWN ANKLES WHAT ALL BENETTON IMAGES AND A LOT OF THE KIND OF ART SUPPORTED BY PANELS THAT HANG AROUND THE NATIONAL ENDOWMENT FOR THE ARTS SHARE IS THE IMPRESSION OF BEING CULTURALLY DARING BUT WITHOUT ACTUALLY HAVING ANY CONTENT THIS STUFF HAS BECOME HARMLESS BECAUSE IT REPRESENTS RADICALISM WITHOUT RADICAL IDEAS IT'S THE APPEARANCE OF POLITICS WITHOUT A POLITICS THAT ANYONE CAN IDENTIFY THE PREVIOUS BENETTON SPLASH CAME WHEN LUCIANO BENETTON THE COMPANY'S FOUNDER APPEARED NAKED IN FULLPAGE ADS TO PROTEST POLITICAL CORRUPTION ONE GETS THE SENSE THAT IF LUCIANO BENETTON WANTED TO PROTEST SELFAGGRANDIZEMENT HE WOULD ALSO TAKE OUT ADS OF HIMSELF NAKED AS ADVERTISING THE BENETTON CAMPAIGN SEEMS TO WORK BENETTON'S SHARE PRICE ON THE ITALIAN STOCK EXCHANGE IS UP 40 THIS YEAR AND ANALYSTS ARE PREDICTING FURTHER GAINS BUT THE COMPANY AND THE ART MILIEU IT FEEDS FROM SEEM TO THINK THEY ARE DOING SOMETHING MORE THAN SELLING PRODUCT THEY ARE SELLING POLITICS AS PRODUCT FOR THE UNINTERESTED OR EVEN AFFRONTED THERE IS AN ANCIENT BUT USEFUL CONSUMER MAXIM NO THANKS JUST LOOKING 9307300109 930730 REVIEW & OUTLOOK EDITORIAL ASIDES ABOUT TIME THE SENATE VOTED 7723 WEDNESDAY TO BAR MOST AID TO NICARAGUA PENDING PROOF THAT INTERNATIONAL TERRORISTS HAVE NOT BEEN INVOLVED WITH SANDINISTA OFFICIALS FROM THE ARMY POLICE OR INTELLIGENCE SERVICES A MAY 23 BLAST IN MANAGUA REVEALED AN ARMS AND INTELLIGENCE CACHE LINKING SANDINISTAS WITH A NETWORK OF INTERNATIONAL TERRORISTS AND KIDNAPPERS CONGRESS HAD PREVIOUSLY HEARD MORE THAN A YEAR OF EVIDENCE DETAILING THE NICARAGUAN GOVERNMENT'S MISUSE OF US AID IT SEEMS THAT MUCH OF THE 800 MILLION WE'VE SPENT THERE SINCE 1990 HAS ENDED UP IN THE POCKETS OF SANDINISTA CRONIES OF COURSE THE SANDINISTAS BECAME CONGRESSIONAL PETS WHEN THE REAGAN ADMINISTRATION WAS TRYING TO STOP THEM AND MERE THEFT OF US TAXPAYERS' MONEY APPARENTLY WASN'T CONSIDERED SUFFICIENT REASON TO STOP THE GRAVY TRAIN BUT THE MANAGUA EXPLOSION ROCKED THE SENATE THE HOUSE HAS YET TO ACT 9307300108 930730 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE BUDGET NEGOTIATORS CONFRONT VARIETY OF CHOICES IN LASTMINUTE SCRAMBLE FOR COVETED PROVISIONS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORGET POLICY THE BUDGET NEGOTIATIONS ARE ABOUT VOTES AND OF COURSE MONEY SHOULD 900 MILLION BE TAKEN FROM THE EARNED INCOME TAX CREDIT TO BUY A SECOND YEAR FOR A RESEARCH TAX CREDIT IMPORTANT TO CALIFORNIA'S HIGH TECH INDUSTRY AND SEN DIANNE FEINSTEIN SHOULD ALMOST 6 BILLION BE THROWN BACK INTO THE MIX TO SALVAGE MORE OF THE BUSINESSMEALS DEDUCTION IN A GAMBLE THAT LAS VEGAS LABOR SUPPORT WILL HELP SWAY NEVADA SEN RICHARD BRYAN BEHIND CLOSED DOORS AT THE CAPITOL THESE WERE AMONG THE CHOICES FACING NEGOTIATORS AS HOUSE AND SENATE DEMOCRATS SOUGHT TO HAMMER TOGETHER A FINAL DEFICIT PACKAGE AND TO ASSEMBLE THE POLITICAL SUPPORT TO GET IT TO PRESIDENT CLINTON'S DESK EACH CALCULATION INSIDE THE ROOM REVERBERATED OUTSIDE TRUCKERS MOUNTED A PHONE BANK AGAINST THE RISING FUELS TAX AIRLINES SOUGHT A LONGER EXEMPTION FROM IT MEANWHILE NO LESS A PERSONAGE THAN REP JACK BROOKS A CIGARCHEWING TEXAN AND CHAIRMAN OF THE JUDICIARY COMMITTEE WALKED ACROSS THE HOUSE FLOOR TO PERSONALLY DELIVER A METHANOL INDUSTRY POSITION PAPER TO WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI BIGCITY BANKERS AND RURAL BARONS ALL MADE THEIR CASES MONEYCENTER INSTITUTIONS HAVING WON A COVETED PROVISION HELPING THE LUCRATIVE MORTGAGESERVICE INDUSTRY PUSHED THEIR OWN HELPFUL TIP FOR PENNYWISE NEGOTIATORS SEVERAL INCLUDING CITICORP ARE SUGGESTING THAT TAXWRITERS CAN PICK UP ANOTHER 600 MILLION BY ALLOWING THEM TO SETTLE ON A DISCOUNTED BASIS LONGRUNNING DISPUTES WITH THE INTERNAL REVENUE SERVICE OVER INTANGIBLE ASSETS MEANWHILE RURAL INTERESTS HAD THEIR OWN CONCERNS A SMALL IN FEDERALBUDGET TERMS 50 MILLION DISPUTE OVER FEES CHARGED TO BROADCASTERS AND CELLULARPHONE COMPANIES THAT TRANSMIT ON FEDERAL LANDS STALLED NEGOTIATIONS OVER THE NATURALRESOURCES PORTION OF THE BUDGET WHICH IS IMPORTANT TO WESTERN INTERESTS AND SOUTHERN TOBACCOSTATE LAWMAKERS IN ALLIANCE WITH SUCH GIANTS AS PHILIP MORRIS COS SOUGHT TO SAVE LANGUAGE REQUIRING THAT 75 OF THE TOBACCO USED IN USMADE CIGARETTES COME FROM US GROWERS RURAL PHONE COMPANIES WERE SEEKING TO EXTEND THEIR GRIP BY ASSURING THAT A PORTION OF THE RADIO SPECTRUM IS SET ASIDE FOR THEM TO PROVIDE FOR ADVANCED WIRELESS COMMUNICATIONS BUT THEIR EFFORTS WERE MEETING RESISTANCE WHAT THEY FIND PARTICULARLY DIFFICULT ABOUT THIS IS WE'RE TRYING TO GIVE THEM SOME COMPETITION SAID AN IMPATIENT ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL I'M JUST NOT GOING TO LET THEM CONFER ON THEMSELVES A SPECIAL ADVANTAGE SOME PARTICIPANTS IN THE LASTMINUTE SCRAMBLE FOR PROVISIONS AT LEAST THOSE WHO STOPPED TO THINK ABOUT IT ALL COULDN'T HELP BEING AMUSED ONE WAS REP NEIL ABERCROMBIE A HAWAII DEMOCRAT WHOSE BEARD AND SHOULDERLENGTH HAIR MAKE HIM AN UNLIKELY BUT EFFECTIVE CHAMPION OF THE MEALSANDENTERTAINMENT DEDUCTION FOR BUSINESS WHEN SPEAKER THOMAS FOLEY NEEDED PRECIOUS VOTES THIS SPRING FOR A BUDGET PROVISION THE HAWAII DELEGATION DELIVERED NOW MR ABERCROMBIE IS BACK AT THE SPEAKER'S DOOR REMINDING THE PARTY OF HIS LOYALTY AND ASKING FOR SUPPORT IN RETURN ON AN ISSUE IMPORTANT TO HIS TOURISMDEPENDENT ISLAND STATE I AM A LOYAL DEMOCRAT I'M LOOKING FOR LOYALTY FROM THE DEMOCRATS HE LAUGHS BUT THERE IS FRUSTRATION IN HIS VOICE TOO AS HE MAKES HIS CASE I'VE GOT TO BATTLE THE IMAGE OF THE THREEMARTINI LUNCH AND THE DEN OF THIEVES' HE SAYS HE LIKENS HIS ISSUE TO THE UGLY PUPPY THE RUNT OF THE LITTER THAT EVERYONE WANTED TO LEAVE BEHIND BUT MR ABERCROMBIE'S ISSUE COULD YET BE PARLAYED INTO A VOTEGETTER FOR DEMOCRATS THOUGH A RELATIVE NEWCOMER THE 55YEAROLD DEMOCRAT ENJOYS TIES TO CHAIRMAN ROSTENKOWSKI THROUGH THEIR MUTUAL FRIEND FORMER LONG ISLAND NY CONGRESSMAN THOMAS DOWNEY AND WITH HIS LIBERAL VOTING RECORD MR ABERCROMBIE HAS BEEN ABLE TO REACH OUT TO ALLIES IN THE BLACK AND HISPANIC CAUCUSES ARGUING THAT THE PROVISION IS A JOBS ISSUE FOR MANY OF THEIR LOWERINCOME CONSTITUENTS WITH NO VOTES TO SPARE THE PARTY LEADERSHIP IN THE SENATE IS MINDFUL OF THIS MANEUVERING AND ITS POTENTIAL INFLUENCE ON NEVADA SEN BRYAN WHO OPPOSED THE DEFICITREDUCTION PLAN LAST MONTH AND IS UP FOR REELECTION NEXT YEAR UNTIL RECENTLY ALL VERSIONS OF THE PLAN HAD ASSUMED THE CURRENT DEDUCTION WOULD BE SCALED BACK TO 50 FROM 80 AT A POTENTIAL SAVING OF MORE THAN 15 BILLION OVER THE NEXT FIVE YEARS BUT A NEW ALTERNATIVE OFFER INSTEAD MOVES ONLY HALFWAY TO 65 YIELDING JUST 96 BILLION FOR THE TREASURY BUT ALSO MAKING THE BILL SOMEWHAT MORE PALATABLE TO LAWMAKERS CONCERNED ABOUT THE ISSUE ONE GROUPS'S GAIN HOWEVER CAN BE ANOTHER'S LOSS ELECTRONICS AND HIGHTECH FIRMS WERE FURIOUS TO SEE THAT THE SAME OFFER THAT BENEFITED MR ABERCROMBIE'S CAUSE ALSO SEVERELY CUT BACK THE RESEARCH AND DEVELOPMENT TAX CREDIT AND AS NEGOTIATORS HAVE SCALED BACK RELATED SMALLBUSINESS PROVISIONS PROPOSED IN THE HOUSE SUCH ACTION THREATENS TO AGGRAVATE A SPLIT BETWEEN MODERATE AND LIBERAL DEMOCRATS JUST AS HOUSE MEMBERS ARE RESENTFUL OF THE SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN HAS MET CRITICISM IN HIS CAUCUS FOR MOVING TOO FAR TOWARD THE HOUSE AND ITS BLACK CAUCUS AT THE EXPENSE OF SOUTHERN DEMOCRATS PERHAPS THE NASTIEST SKIRMISHING IS AMONG THOSE WHO HAVE THE MOST IN COMMON TRANSAMERICA CORP A STOCK INSURANCE COMPANY WEIGHED IN THIS WEEK WITH WASHINGTON NEWSPAPER ADS SUGGESTING THAT 12 BILLION COULD BE QUICKLY HAD FOR LIBERAL DEMOCRATIC INITIATIVES BY RAISING TAXES ON ITS MUTUAL INSURANCE COMPETITORS AND AMONG SOUTHERN DEMOCRATS THEMSELVES FEW AREAS OF POLITICS ARE MORE INTERNECINE THAN THOSE SURROUNDING TOBACCO THE PROPOSED CIGARETTE RESTRICTIONS DEMANDING 75 DOMESTIC TOBACCO IN CIGARETTES SOLD IN THE US OR ABROAD ARE BEING LOBBIED INTENSELY AMONG PHILIP MORRIS'S LOBBYISTS IS WILLIAM OLDAKER WHO IS ALSO A FAMILIAR FIGURE IN THE CAPITOL AS AN ADVISER TO THE HOUSE ADMINISTRATION COMMITTEE CHAIRED BY REP CHARLES ROSE OF NORTH CAROLINA THE RESTRICTIONS HAVE DIVIDED MR ROSE'S OWN DELEGATION AND PROVOKED COMPLAINTS THAT PHILIP MORRIS COMPETITORS LIKE RJR NABISCO HOLDINGS CORP'S RJ REYNOLDS TOBACCO UNIT WILL BE SEVERELY HURT AMID THE FRENZY OF LOBBYING GOING ON PRESIDENT CLINTON MANAGED TO FIND A RESPITE IN OF ALL PLACES THE HOUSE GYM WEDNESDAY NIGHT HE ATTENDED THE ANNUAL GYM DINNER AN EVENT THAT USUALLY RECEIVED SHORT SHRIFT FROM DEMOCRATIC PRESIDENTS IN THE PAST MR CLINTON THOUGH CLOSED DOWN THE PLACE STAYING PAST 9 PM AFTER EATING A DINNER OF STEAK AND APPLE COBBLER JOHN HARWOOD AND GREG HITT CONTRIBUTED TO THIS ARTICLE 9307300107 930730 GM POSTS NET OF 8891 MILLION FOR 2ND QUARTER COSTCUTTING STRONG SALES ABROAD CITED IN RESULTS THAT TOPPED FORECASTS BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT BENEFITING FROM COST CUTTING IN NORTH AMERICA AND HIGHER EARNINGS OVERSEAS GENERAL MOTORS CORP POSTED STRONGERTHANEXPECTED SECONDQUARTER NET INCOME OF 8891 MILLION OR 92 CENTS A SHARE THE SECONDQUARTER PROFIT WHICH ALSO REFLECTS STRONG EARNINGS GAINS BY NONAUTOMOTIVE OPERATIONS COMPARES WITH A YEAREARLIER LOSS OF 703 MILLION REVENUE ROSE 39 TO 3666 BILLION SOME WALL STREET ANALYSTS WERE IMPRESSED ENOUGH TO NUDGE THEIR ESTIMATES FOR THE FULL YEAR A LITTLE HIGHER AND GM SHARES ROSE 50 CENTS APIECE TO 4750 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GM'S PROFIT FIT INTO AN IMPROVING EARNINGS PICTURE FOR THE BIG THREE US AUTO MAKERS THANKS TO RISING VEHICLE SALES IN NORTH AMERICA THEY ARE RECOVERING FROM A LONG SOAK IN RED INK SECONDQUARTER EARNINGS FOR GM FORD MOTOR CO AND CHRYSLER CORP CAME TO 235 BILLION A POINT ON WHICH THE UNITED AUTO WORKERS COULDN'T RESIST COMMENTING THE AUTO MAKERS' COMBINED PROFIT IS THE STRONGEST EVIDENCE YET OF THE TURNAROUND THAT'S UNDER WAY IN THE US AUTO INDUSTRY OWEN BIEBER THE UAW PRESIDENT SAID HE SERVED NOTICE THAT IN CONTRACT NEGOTIATIONS THIS FALL THERE CAN BE NO DOUBT THAT UAW MEMBERS HAVE EVERY RIGHT TO SHARE EQUITABLY IN THE INDUSTRY'S COMEBACK FOR THEIR PART GM OFFICIALS SEEMED TO MAKE A SPECIAL POINT OF WARNING AGAINST COMPLACENCY WE'RE PLEASED WITH THE TURNAROUND BUT WE STILL HAVE A LONG WAYS TO GO G RICHARD WAGONER JR EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER TOLD A NEWS CONFERENCE IN A STATEMENT GM PRESIDENT JOHN F SMITH JR EXPRESSED CONCERN SEVERAL TIMES ABOUT MAINTAINING MOMENTUM AS GM REPORTED WEDNESDAY ITS FINANCE COMPUTERSERVICES AND ELECTRONICS UNITS ACCOUNTED FOR 6646 MILLION OF THE SECONDQUARTER PROFIT UP 51 FROM YEAREARLIER RESULTS THAT INCLUDED ACCOUNTING CHARGES GM'S CAR BUSINESSES MADE MONEY ONLY OVERSEAS POSTING A 30 EARNINGS GAIN TO 368 MILLION IN THE SECOND QUARTER SURGING VEHICLE SALES IN LATIN AMERICA ACCOUNTED FOR THE INCREASE OFFSETTING A DECLINE IN EARNINGS FROM EUROPE GM SAID ALTHOUGH MR WAGONER DECLINED TO BREAK OUT EARNINGS BY REGION HE DID SAY GM REMAINED PROFITABLE IN EUROPE IN THE FACE OF THE INDUSTRY'S 18 DOWNTURN THERE IN THE SECOND QUARTER HE SAID GM EUROPE EXPECTS TO STAY IN THE BLACK THIS YEAR IN ITS SICK CORE NORTH AMERICAN VEHICLE BUSINESS GM REPORTED SIGNIFICANT PROGRESS NARROWING THE SECONDQUARTER LOSS TO 95 MILLION FROM THE YEAREARLIER 761 MILLION THAT CHIEFLY REFLECTS COST CUTTING BECAUSE GM'S NORTH AMERICAN FACTORY SALES OF VEHICLES DECLINED 19 TO 1433000 UNITS WORLDWIDE VEHICLE SALES EASED 36 TO 2096000 UNITS GM'S PROFITPERVEHICLE WORLDWIDE AMOUNTED TO ABOUT 130 IN THE SECOND QUARTER COMPARED WITH 236 FOR FORD AND 808 FOR CHRYSLER GM SAID NORTH AMERICAN VEHICLE OPERATIONS EARNED 675 MILLION DURING THE SECOND QUARTER BEFORE INTEREST TAXES AND ACCOUNTING CHARGES FOR RETIREE MEDICAL BENEFITS COMPARED WITH A LOSS OF 298 MILLION A YEAR EARLIER GM'S AIM IS TO BREAK EVEN ON THAT BASIS IN NORTH AMERICA THIS YEAR AFTER POSTING A 45 BILLION LOSS IN 1992 WE REMAIN FIRMLY ON TRACK TO ACHIEVE THAT GOAL MR SMITH SAID ALTHOUGH HE CAUTIONED THAT CONTINUING THIS RATE OF PROGRESS REMAINS A CHALLENGE MR WAGONER THE CHIEF FINANCIAL OFFICER ACKNOWLEDGED THAT THIS FIGURE COULD BE BACK IN THE RED IN THE THIRD QUARTER REFLECTING NEWMODEL CHANGEOVER AND OTHER COSTS GM ALSO REPORTED A 5912 MILLION NET INCREASE IN CASH AND CASH EQUIVALENTS DURING THE SECOND QUARTER ENDING THE PERIOD WITH 834 BILLION IN CASH AND CASH EQUIVALENTS COMPARED WITH 603 BILLION A YEAR EARLIER GM WAS THUS ABLE TO FUND A 35 INCREASE IN CAPITAL SPENDING DURING THE FIRST HALF TO 283 BILLION ANALYSTS SAID GM OFFICIALS REPORTED INCREASING PAYMENTS INTO ITS PENSION FUNDS TO 600 MILLION IN THE SECOND QUARTER FROM 400 MILLION IN THE YEAREARLIER QUARTER GM FACES AN UNFUNDED PENSION LIABILITY THAT IT ESTIMATED AT 14 BILLION AT THE END OF 1992 ALTHOUGH IT HAS SINCE INDICATED THE FIGURE COULD RISE TO 19 BILLION BECAUSE OF LOW LONGTERM INTEREST RATES GM'S MR WAGONER SAID MANAGEMENT HAS SUBMITTED A DETAILED PLAN TO THE BOARD FOR ADDRESSING THE LIABILITY HE DECLINED TO ELABORATE BUT JOHN CASESA AN ANALYST FOR WERTHEIM SCHRODER SAID HE NOW EXPECTS GM TO BE ABLE TO ELIMINATE THE LIABILITY BY 1997 OR 1998 WITH CASH FROM OPERATIONS AND A LIMITED AMOUNT OF NEW FINANCING THE COMPANY IS NOW PAST THE CRISIS STAGE AND IS FOCUSING ON A CREDIBLE STRATEGIC PLAN FOR THE NEXT FIVE YEARS MR CASESA SAID THERE IS NO SMOKE AND MIRRORS HERE THESE ARE ALL REAL EARNINGS MANAGEMENT IS DELIVERING EXACTLY WHAT IT PROMISED 9307300106 930730 INDUSTRY FOCUS BANKS RELY MORE ON TRADING BUT SAY LITTLE ABOUT IT COMPANIES DENY TAKING RISKY BETS BUT WALL STREET WANTS MORE DATA BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RECORD TRADING REVENUES PROPELLED BIG MONEYCENTER BANKS ONCE AGAIN TO BETTERTHANEXPECTED EARNINGS IN THE MOST RECENT QUARTER BUT BECAUSE FEW DETAILS ABOUT THOSE REVENUES ARE DISCLOSED INVESTORS MAY WONDER WHETHER THE BANKS SIMPLY HAD A GOOD DAY AT THE TRACK WHAT'S CLEAR IS THAT THE TOP SEVEN BANKS REPORTED 225 BILLION IN TRADING REVENUE THE ONLY PART OF BANKING REVENUE GROWING AT DOUBLEDIGIT RATES THE TROUBLE IS THAT MOST BANKS ARE NOT LETTING ANYONE KNOW HOW MUCH OF THAT REVENUE THEY EARNED SIMPLY AS BROKERS IN TRANSACTING CUSTOMER ORDERS OR AS RISKTAKERS FOR THEIR OWN ACCOUNTS A FORM OF BETTING THAT COULD TURN JUST AS SOUR IN ONE PERIOD AS IT WAS SWEET IN THE OTHER INVESTORS ARE NOT COMFORTABLE PUTTING A HIGH EARNINGS MULTIPLE ON VOLATILE REVENUES SAYS DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS BUT WHILE THESE EARNINGS DO JUMP AROUND QUARTER TO QUARTER TRADING ACTIVITIES HAVE NOT BEEN A MAJOR TROUBLE SPOT THE ANALYSTS SAY IN FACT TRADING REVENUE FOR THE TOP SEVEN BANKS HAS GENERALLY BEEN ON THE RISE OVER THE PAST 10 YEARS ACCORDING TO KEEFE BRUYETTE BANKS SAY THEY ARE NOT TAKING RISKY BETS WITH THEIR BALANCE SHEETS AND ADD THAT GIVEN THE MANY DIFFERENT MARKETS AND THE DIFFICULTY SEPARATING REVENUE FROM ONE PRODUCT TO ANOTHER IT WOULD BE NEARLY IMPOSSIBLE TO BREAK OUT REVENUE BY SECTOR OR GEOGRAPHY NONETHELESS SECURITIES FIRMS DON'T PROVIDE MUCH MORE INFORMATION BUT THEY DO BREAK OUT EARNINGS FROM PROPRIETARY TRADING FOR THEIR OWN ACCOUNT BANKS GENERALLY REPORT TWO FIGURES REVENUES FROM FOREIGN EXCHANGE TRADING AND FROM EVERYTHING ELSE WHICH INCLUDES DEVELOPINGCOUNTRY DEBT TRADING COMMODITIES MAKING MARKETS IN SECURITIES AND SUCH DERIVATIVE INSTRUMENTS AS SWAPS AND OPTIONS MOST BANKS DON'T BREAK OUT WHETHER THE RESULTS ARE FROM BUSINESS FOR CUSTOMERS OR FROM TAKING BETS WITH THE BANK'S BALANCE SHEET AND MOST DON'T LABEL RESULTS BY PRODUCT OR GEOGRAPHY BANKS SAID THEIR BIG SUCCESS IN TRADING IN THE SECOND QUARTER CAME FROM CURRENCY AND INTERESTRATE TRADING IN THE VOLATILE EUROPEAN MARKETS THAT SHOWS NO SIGNS OF ABATING SO FAR IN THIS QUARTER WITH TRADITIONAL BANKING BUSINESSES SHRINKING TRADING ACTIVITIES HAVE BECOME MUCH MORE IMPORTANT TO BANKS' BOTTOM LINES IN FACT WITH TRADITIONAL BANKING STILL IN THE DOLDRUMS THE BIG BANKS ARE INCREASINGLY RELIANT ON THESE GAINS FOR REVENUE GROWTH THE RELIANCE COULD BECOME GREATER AS THE CURRENT EXTRAORDINARY PROFIT MARGINS BETWEEN BORROWING COSTS AND LENDING RATES SHRINK THE RESULTS REFLECT THE CHANGING NATURE OF THE BIG WHOLESALE BANKS MANY NOW LOOK AT THEMSELVES AS WHOLESALE FINANCIAL INTERMEDIARIES HELPING COMPANIES WITH THEIR CAPITAL AND RISKMANAGEMENT NEEDS WITHOUT WEIGHING DOWN THEIR BALANCE SHEETS BANKERS TRUST NEW YORK CORP THE EXTREME CASE OF THIS SHIFT REPORTED GOOD NEWS TO ANALYSTS LOANS ON THE BOOKS WERE DOWN AGAIN IN THE SECOND QUARTER SOME ANALYSTS WONDER WHETHER BANKS WILL BE ABLE TO WRING AS MUCH PROFIT OUT OF TRADING ACTIVITIES LIKE INTERESTRATE SWAPS AS THEY HAVE IN THE PAST BUT WALL STREET'S SKEPTICISM ABOUT BANKING RESULTS GOES DEEPER AND STEMS FROM THE LACK OF FINANCIAL INFORMATION IT'S NOT ACADEMIC WALL STREET TENDS TO VALUE TRADING EARNINGS WITH A LOWER MULTIPLE THAN SAY EARNINGS FROM A CREDITCARD LOAN OR EVEN OTHER NONLENDING BUSINESSES SUCH AS CASH MANAGEMENT ANALYSTS STILL VIEW THE TRADING REVENUE AS OVERLY VOLATILE SO STOCKS ARE STILL BEING PENALIZED MOST BIG BANKS' STOCKS ACTUALLY SLUMPED IN PRICE AFTER THE ANNOUNCEMENT OF BETTERTHANEXPECTED EARNINGS FOR THE SECOND QUARTER ALTHOUGH THE ISSUES RECENTLY HAVE BEGUN TO BOUNCE BACK THE DISCLOSURE FACTOR IS A MAJOR HANDICAP FOR WHY BANKS DON'T GET CREDIT FOR TRADING RESULTS IN STOCK PRICES SAYS JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO THE BANKING INDUSTRY REGULATORY COMMUNITY AND ACCOUNTING INDUSTRY HAVEN'T DONE MUCH TO SHED LIGHT ON THE ISSUE BANKS' CHANGING MIX OF EARNINGS AND THEIR INCREASING RELIANCE ON MARKETMAKING BUSINESSES HAVE SPARKED INTEREST FROM THE SECURITIES AND EXCHANGE COMMISSION THE SEC IS REVIEWING WHETHER IT SHOULD ALTER GUIDE THREE WHICH DETAILS WHAT BANKS MUST DISCLOSE IN THEIR FINANCIAL STATEMENTS THE AGENCY IS STUDYING WHETHER THOSE DISCLOSURES ARE CONSISTENT WITH NEW RULES LAID DOWN BY THE FINANCIAL ACCOUNTING STANDARDS BOARD THE BIG QUESTION IS ABOUT THE QUALITY OF FINANCIAL STATEMENTS SAID CARTER BEESE AN SEC COMMISSIONER WITH A KEEN INTEREST IN ACCOUNTING AND DISCLOSURE ISSUES IT'S HARD TO LOOK AT TRADITIONAL FINANCIAL REPORTING AND GET A GOOD PICTURE OF THE BUSINESS MOREOVER A REPORT ISSUED BY THE GROUP OF 30 A THINK TANK OF FORMER CENTRAL BANKERS AND FINANCIAL EXECUTIVES SAID THAT UNTIL LOCAL STANDARDSSETTING BODIES CAN ADOPT HARMONIZED STANDARDS THERE IS A NEED TO IMPROVE THE QUALITY OF FINANCIAL STATEMENT DISCLOSURE CONCERNING TRANSACTIONS IN BOTH DERIVATIVES AND CASH MARKET INSTRUMENTS ALDEN TOEVS MANAGING VICE PRESIDENT AT FIRST MANHATTAN CONSULTING GROUP A BANK CONSULTING FIRM SAYS BANKS WHO DISCLOSE MORE THAN THE AVERAGE TEND TO GET THE BENEFIT OF THE DOUBT IN THEIR STOCK PRICE AS THEY RELEASED SECONDQUARTER RESULTS BIG BANKS COGNIZANT OF THE INCREASED FOCUS ON TRADING RESULTS OFFERED UP LOTS OF CHARTS AND GRAPHS IN PRESENTATIONS TO ANALYSTS BUT THEY DIDN'T PROVIDE MUCH IN THE WAY OF NEW DATA CHEMICAL BANKING CORP HAD 12 SLIDES IN ITS PRESENTATION ON ITS RECORD 298 MILLION IN TRADING REVENUE THE MESSAGE WE'RE SAFE BANKERS TRUST HAD A HIGHTECH CHART SHOWING THE RELATIONSHIP BETWEEN THE YIELD CURVE THE DIFFERENCE BETWEEN SHORTTERM AND LONGTERM INTEREST RATES AND ITS TRADINGRELATED EARNINGS THE CHART CONTENDED ESSENTIALLY THAT BANKERS TRUST WASN'T TAKING IRRESPONSIBLE RISKS IN ITS TRADING WHAT BANKS DO IS TO GIVE SOME GUIDANCE WITHOUT NUMBERS TIMOTHY YATES CHIEF FINANCIAL OFFICER AT BANKERS TRUST SAID AT AN ANALYSTS PRESENTATION LAST WEEK THAT THE BANK BENEFITED FROM FALLING INTEREST RATES IN EUROPE AS WELL AS FLUCTUATIONS IN THE CURRENCY MARKETS MR YATES SAID IT WOULD BE MISLEADING TO PROVIDE INFORMATION BY GEOGRAPHY BECAUSE THE BANK MOVES QUICKLY IN AND OUT OF MARKETS SO THAT ONE QUARTER CAN'T BE COMPARED EASILY WITH SUBSEQUENT ONES BANKERS TRUST BELIEVES ITS PORTFOLIO IS VARIED ENOUGH THAT IT CAN ENDURE BAD QUARTERS IN ONE PRODUCT BUT STILL HAVE STRONG EARNINGS UNLIKE MOST BIG BANKS THE COMPANY DOES BREAK OUT ITS MARKETMAKING RESULTS BETWEEN PROPRIETARY TRADING AND FINANCIAL RISK MANAGEMENT INCLUDING THE SALE OF DERIVATIVES AND OTHER INCOME BANKERS TRUST EARNED 225 MILLION THROUGH TRADING IN THE FIRST HALF THAT WAS ITS BIGGEST INCOMEPRODUCING CATEGORY EVEN SEPARATING THESE CATEGORIES OUT WAS A BIG STEP FORWARD SAYS ONE BANKERS TRUST OFFICIAL PROGRESS ON DISCLOSURE IS GOING TO BE SLOW ESPECIALLY IF THE INDUSTRY ISN'T PUSHED BY FASB OR REGULATORS HE SAYS UNTIL WE ALL AGREE LOCKSTEP PEOPLE ARE NOT APT TO DO ANYTHING HEROIC 9307300105 930730 LONE STAR INDUSTRIES' PLAN NEW YORK A FEDERAL BANKRUPTCY COURT IN MANHATTAN TERMINATED LONE STAR INDUSTRIES INC'S EXCLUSIVE RIGHTS TO PROPOSE A PLAN OF REORGANIZATION AS A RESULT OF THE RULING A COMMITTEE OF EQUITY HOLDERS SAID IT CAN INDEPENDENTLY NEGOTIATE A REORGANIZATION OF THE CEMENT AND CONCRETE MAKER THE EQUITY COMMITTEE SAID IN COURT PAPERS THAT IT HAS BEEN APPROACHED BY THIRD PARTIES CONSIDERING AN INVESTMENT THAT WOULD PROVIDE MORE CASH TO CREDITORS AND MORE VALUE TO EQUITY HOLDERS THAN THE COMPANY'S RECENTLY AMENDED PLAN 9307300104 930730 LAW CHARLES H KEATING III IS SENTENCED FOR ROLE IN LINCOLN S&L FRAUD LOS ANGELES CHARLES H KEATING III FORMERLY A TOP EXECUTIVE OF LINCOLN SAVINGS & LOAN ASSOCIATION WAS SENTENCED TO EIGHT YEARS AND ONE MONTH IN PRISON AND ORDERED TO PAY 97 MILLION FOR CRIMES RELATED TO THE HIGHPROFILE FAILURE OF THE THRIFT MR KEATING REMAINS FREE ON BAIL PENDING APPEAL OF HIS JANUARY FEDERAL CONVICTION ON 64 COUNTS OF RACKETEERING CONSPIRACY BANK AND SECURITIES FRAUD AND OTHER OFFENSES MR KEATING 37 YEARS OLD IS THE SON OF FORMER LINCOLN OPERATOR CHARLES H KEATING JR WHO IS 69 WHILE EIGHT EXECUTIVES OF LINCOLN IN IRVINE CALIF AND ITS PARENT AMERICAN CONTINENTAL CO IN PHOENIX ARIZ ELECTED TO PLEAD GUILTY TO FEDERAL CHARGES BOTH KEATINGS CHOSE TO TAKE THEIR CASES TO TRIAL THE ELDER MR KEATING WAS FOUND GUILTY OF 73 FEDERAL CRIMINAL COUNTS IN JANUARY AND SENTENCED TO 12 1/2 YEARS BEHIND BARS EARLIER THIS MONTH THE FEDERAL SANCTION IS IN ADDITION TO A 10YEAR SENTENCE HE HAD BEEN SERVING FOR STATE SECURITIES FRAUD CRIMES HE HAS BEEN IN PRISON FOR THE PAST 15 MONTHS EARLIER THIS WEEK THE ELDER MR KEATING WAS ORDERED TO FORFEIT 265 MILLION AS A RESULT OF THE JANUARY CONVICTIONS FEDERAL PROSECUTORS SAY THEY WILL ASK A JUDGE TO ORDER HIS SON TO FORFEIT 231 MILLION IN ADDITION TO THE 97 MILLION RESTITUTION ORDER THE YOUNGER MR KEATING LIKE HIS FATHER SAYS HE IS INSOLVENT 9307300103 930730 LEISURE & ARTS BOOKSHELF THE GOVERNMENT AS SAVIOR OF BLACK AMERICA BY MATTHEW REES CORNEL WEST'S LATEST BOOK RACE MATTERS BEACON 105 PAGES 15 HAS RECEIVED GLOWING PRAISE FROM SUCH FASHIONABLE BELTWAY THINKERS AS BILL BRADLEY AND MARIAN WRIGHT EDELMAN THAT'S NO SURPRISE THEIR MUDDLED THINKING ON THE ISSUE OF RACE PRETTY WELL MIRRORS THAT OF THE AUTHOR LARGELY A COLLECTION OF MR WEST'S PREVIOUSLY PUBLISHED ESSAYS RACE MATTERS OCCASIONALLY OFFERS THOUGHTPROVOKING COMMENTARY ON A WIDE ARRAY OF SUBJECTS FROM BLACK SEXUALITY TO MALCOLM X AND AFFIRMATIVE ACTION SOMETIMES THE PRINCETON PROFESSOR HAS SENSIBLE ANSWERS TO THE QUESTIONS RAISED BY THESE COMPLEX ISSUES MOST OF THE TIME HE DOESN'T FOR STARTERS IT IS DIFFICULT TO TAKE SERIOUSLY ANYONE WHO IN THE SECOND SENTENCE OF HIS BOOK DESCRIBES THE 1992 LOS ANGELES RIOTS AS A DISPLAY OF JUSTIFIED SOCIAL RAGE THAT ANALYSIS HARDLY MESHES WITH THE RESULTS OF A POSTRIOT SURVEY BY THE LOS ANGELES TIMES SIXTY PERCENT OF THOSE CONVICTED OF RIOTRELATED FELONIES HAD CRIMINAL RECORDS AND THE MOSTSOUGHTAFTER ITEMS BY LOOTERS WERE IN ORDER OF PREFERENCE ELECTRONICS GEAR LIQUOR CLOTHING AND AUTO PARTS FORTUNATELY THE BOOK CAN ONLY GET BETTER AFTER SUCH A QUICK DESCENT INTO HYPERBOLE AT TIMES MR WEST TALKS A GOOD GAME NOTWITHSTANDING THE STATISM THAT UNDERLIES MOST OF HIS THINKING HE CONCEDES THAT THE LIBERAL NOTION THAT MORE GOVERNMENT PROGRAMS CAN SOLVE RACIAL PROBLEMS IS SIMPLISTIC PRECISELY BECAUSE IT FOCUSES SOLELY ON THE ECONOMIC DIMENSION BUT THIS GOOD POINT IS LEFT BEHIND IN FAVOR OF A HOLLOW CALL TO ARMS FOR A FRANK ACKNOWLEDGEMENT OF THE BASIC HUMANNESS AND AMERICANNESS OF EACH OF US COUPLED WITH A RINGING DECLARATION ON THE NEED TO LOOK TO NEW FRAMEWORKS AND LANGUAGES TO UNDERSTAND OUR MULTILAYERED CRISIS AND OVERCOME OUR DEEP MALAISE THIS IS THE KIND OF JARGON TO BE EXPECTED FROM SOMEONE WHO HAS SPENT MUCH OF HIS PROFESSIONAL LIFE IN THE ACADEMY BUT IT IS NONETHELESS A PAINFUL DIVERSION FROM A SERIOUS SUBJECT THEN AGAIN PERHAPS IT'S BETTER THAT MR WEST STICKS MOSTLY TO PLATITUDES AND AVOIDS THE GRITTY DETAILS BECAUSE WHEN HE EXPLORES THE ROOTS OF THE PROBLEMS FACING BLACK AMERICA HE COMES UP SHORT FOR EXAMPLE HE IDENTIFIES THE WEAKENING OF BLACK CULTURAL INSTITUTIONS AND THE SHATTERING OF BLACK CIVIL SOCIETY AS THE RESULT OF THE SATURATION OF MARKET FORCES AND THE PRESENT CRISIS IN BLACK LEADERSHIP THE PROBLEMS WITH THIS CONSTRUCT ARE MANY BUT IT IS PARTICULARLY GALLING BECAUSE IT ASSUMES BLACKS ARE HELPLESS MANIPULABLE PAWNS BEREFT OF RESPONSIBILITY FOR THEIR ACTIONS MOREOVER IT TACITLY PUTS A FAITH IN ANOTHER INSTITUTION NAMELY GOVERNMENT TO SOLVE THE PROBLEMS OF THE AFFLICTED THIS GOVERNMENTASSAVIOR LINE OF REASONING WOULD BE MORE APPROPRIATE WERE MR WEST WRITING 30 YEARS AGO WHEN BASIC CIVIL AND POLITICAL RIGHTS WERE NOT A REALITY FOR BLACKS BUT IT IS INDICATIVE OF ANACHRONISTIC THINKING TO REASON THAT IF ONLY THE MARKET DID LESS AND THE GOVERNMENT DID MORE BLACKS AS A WHOLE WOULD BE BETTER OFF TODAY DOWNRIGHT PETTY IS MR WEST'S CHAPTER ON WHAT HE CALLS THE NEW BLACK CONSERVATIVES HE CORRECTLY POINTS OUT THAT THIS IS NOT A NEW PHENOMENON NOTING THAT MANY BLACK LUMINARIES OF YESTERYEAR SUCH AS JOURNALIST GEORGE SCHUYLER AND AUTHOR ZORA NEALE HURSTON COULD RIGHTLY BE DESCRIBED AS CONSERVATIVES BUT HE THEN DISMISSES TODAY'S BLACK CONSERVATIVES AS NOTHING MORE THAN BENEFICIARIES OF AFFIRMATIVEACTION PROGRAMS WHOSE NEED TO GAIN THE RESPECT OF THEIR WHITE PEERS DEEPLY SHAPES CERTAIN ELEMENTS OF THEIR CONSERVATISM THAT WILL BE NEWS TO MANY CONSERVATIVES BLACK AND WHITE AND SOME EVIDENCE SUBSTANTIATING SUCH A CONTROVERSIAL ASSERTION WOULD BE WELCOME NONE IS OFFERED LATER MR WEST CRITICIZES ONE OF THE GODFATHERS OF BLACK CONSERVATISM THOMAS SOWELL FOR BEING AN ADVOCATE OF MARKETBASED POLICIES HE CYNICALLY WRITES A PROVOCATIVE AND SLIGHTLY UNFAIR QUESTION TO THIS DESCENDANT OF SLAVES SOLD AT THE AUCTION BLOCK IS CAN THE MARKET DO ANY WRONG A MORE APPROPRIATE QUESTION WOULD BE CAN THE GOVERNMENT DO ANY RIGHT MR WEST RECENTLY HAS CARVED OUT A COMFORTABLE NICHE FOR HIMSELF AS ONE OF AMERICA'S MOST RECOGIZED SPOKESMEN ON RACIAL ISSUES HE RECENTLY SIGNED UP WITH MICHAEL LERNER OF CLINTON WHITE HOUSE AND POLITICS OF MEANING FAME TO COLLABORATE ON A BOOK WITH A HEFTY ADVANCE BUT HIS CENTRAL FAILING IN RACE MATTERS IS AN INABILITY TO SHED A VICTIMDRIVEN WAY OF THINKING HE CORRECTLY RECOGNIZES THAT ECONOMIC AND CULTURAL ADVANCEMENT DO NOT NECESSARILY GO HAND IN HAND BUT DOES NOT COMPREHEND THAT ADVANCEMENT ON BOTH FRONTS IS MOST LIKELY TO BE ACHIEVED NOT THROUGH MORE GOVERNMENT INTERVENTION BUT INSTEAD THROUGH STABLE FAMILY UNITS THAT EMPHASIZE THRIFT RESPONSIBILITY AND HARD WORK MR REES IS A JOURNAL EDITORIAL WRITER 9307300102 930730 TECHNOLOGY & HEALTH MCI IN BOLD MOVE WINS ALLIES IN WIRELESS COMMUNICATIONS WAR BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP MOVED TO COMPETE IN AN EXPECTED WIRELESS WAR BY JOINING WITH MORE THAN 150 COMPANIES TO SUPPLY PERSONAL COMMUNICATIONS SERVICES TO A MARKET THAT COULD REACH HALF THE US POPULATION MCI SIGNED LETTERS OF INTENT WITH A RANGE OF COMPANIES INCLUDING CABLE TELEPHONE CELLULAR AND PUBLISHING CONCERNS THE MOVE IS SIGNIFICANT BECAUSE IT IS THE FIRST STEP BY A MAJOR NONCELLULAR COMPANY TO STAKE OUT A COMPETITIVE POSITION IN THE BURGEONING MARKET FOR WIRELESS COMMUNICATIONS THE FOCUS OF MCI'S EFFORTS IS THE EMERGING MARKET FOR WIRELESS PERSONAL COMMUNICATIONS INCLUDING LIGHTWEIGHT POCKET PHONES HANDHELD COMPUTERS AND OTHER MOBILE DEVICES THAT WILL LET CUSTOMERS TRANSMIT VOICE DATA AND FACSIMILES FROM THEIR OFFICES THEIR HOMES AND WHILE TRAVELING IN A DECADE OR SO PERSONAL COMMUNICATIONS SERVICES COULD PROVIDE CONSUMERS WITH A RELIABLE ALTERNATIVE TO TRADITIONAL LOCAL TELEPHONE SERVICE THE SYSTEM MCI ENVISIONS WOULD RELY ON WIRELESS TRANSMISSIONS FROM LOWPOWER TELEPHONES TO A LOCAL NETWORK MUCH LIKE TODAY'S CELLULAR PHONE NETWORKS FROM THERE CALLS COULD BE TRANSMITTED VIA TELEPHONE LINES CABLE TV SYSTEMS OR OTHER NETWORKS TO THEIR DESTINATION MCI'S ROLE WOULD BE TO COORDINATE THE MANAGEMENT OF THIS NETWORK OF NETWORKS A HOST OF COMPANIES HAS BEEN TESTING POCKETPHONES SYSTEMS UNDER EXPERIMENTAL LICENSES GRANTED BY THE FEDERAL COMMUNICATIONS COMMISSION WHICH IS EXPECTED TO DECIDE IN SEPTEMBER HOW TO CARVE UP THE SPACE ON THE AIRWAVES SET ASIDE FOR THE NEW SERVICES IT MAY TAKE 18 MONTHS OR MORE BEFORE THE FCC AWARDS LICENSES AT THAT POINT THE MCILED CONSORTIUM COULD LAUNCH THE SERVICES IN MAJOR MARKETS PRETTY QUICKLY WITHIN A YEAR ACCORDING TO GERALD H TAYLOR PRESIDENT OF MCI CONSUMER MARKETS THE AGENCY IS WEIGHING WHETHER TO OFFER NATIONWIDE LICENSES AS WELL AS REGIONAL LICENSES IN ADDITION TO DECIDING HOW MANY LICENSES TO AWARD THE FCC IS CONSIDERING WHETHER CURRENT CELLULAR PHONE COMPANIES SHOULD BE ALLOWED TO HOLD LICENSES FOR PERSONAL COMMUNICATIONS SERVICES WITHIN THEIR CURRENT CELLULAR TERRITORIES MCI BELIEVES A NATIONWIDE APPROACH WOULD BE THE MOST EFFECTIVE WAY TO FUND THE EXTREMELY EXPENSIVE PROPOSED INFRASTRUCTURE FOR POCKET PHONES THE INVESTMENT REQUIRED WOULD BE SIGNIFICANT SAID MR TAYLOR HE ESTIMATES IT WOULD COST THE CONSORTIUM ABOUT 8 BILLION TO HAVE A FULLYWORKING PCS SYSTEM COVERING ABOUT 75 OF THE US POPULATION A SPOKESMAN FOR AMERICAN TELEPHONE & TELEGRAPH CO SAID THE CONCERN CONSIDERED MCI'S PREFERENCE FOR THE GRANTING OF NATIONWIDE LICENSES TO BE LESS COMPETITIVE THAN A PLAN IT SUPPORTS UNDER WHICH THE FCC WOULD GRANT AS MANY AS FIVE LICENSES FOR PCS SERVICES IN EACH LOCAL AREA ALTHOUGH AT&T DOESN'T PLAN ANY MAJOR MOVES SIMILAR TO MCI'S UNTIL THE FCC'S DECISION IT HAS ITS SIGHTS ON THE PCS MARKET PEOPLE ARE BECOMING MUCH MORE MOBILE AND A GROWING AMOUNT OF THEIR COMMUNICATIONS NEEDS MUST BE MET BY SYSTEMS LIKE PCS THE SPOKESMAN SAID MCI SAYS ITS AGREEMENT WITH THE CONSORTIUM PROVIDES FOR A TWOTIERED STRUCTURE UNDER WHICH THE VARIOUS COMPANIES MOST OF WHOM ARE SMALL REGIONAL OPERATORS WOULD PROVIDE LOCAL PCS SERVICES AS WELL AS CONNECT WITH CALLS MADE ON MCI'S LONGDISTANCE NETWORK MCI'S PARTNERS WILL TAKE AN EQUITY STAKE IN THE CONSORTIUM WHILE MCI WOULD MANAGE THE OVERALL NATIONAL SYSTEM MR TAYLOR SAID MCI'S MOVE APPEARS TO POSITION IT FOR TWO EXPECTED DEVELOPMENTS LAWMAKERS ARE CLOSE TO GRANTING THE FCC PERMISSION TO AUCTION OFF PARTS OF THE RADIO SPECTRUM AS OPPOSED TO THE CURRENT PRACTICE OF CONDUCTING LOTTERIES OR HOLDING HEARINGS AND MCI HOPING THAT THE FCC IN SEPTEMBER WILL SUPPORT ITS NATIONWIDE APPROACH SAYS IT WILL BID IN SUCH AUCTIONS WITH THE ADDED CLOUT AND RESOURCES OF ITS PARTNERS BEHIND IT MCI IS ALSO FLUSH WITH CASH AS A RESULT OF BRITISH TELECOMMUNICATIONS PLC'S 43 BILLION INVESTMENT IN THE CONCERN EARLIER THIS YEAR BUT MCI'S STRATEGY HAS THE CELLULAR INDUSTRY UP IN ARMS THIS MAY BE GREAT LOBBYING POLICY BUT IT'S BLATANTLY ANTICOMPETITIVE FUMES THOMAS E WHEELER PRESIDENT OF THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION WHICH REPRESENTS CELLULAR COMPANIES THAT ARE POTENTIAL COMPETITORS TO PCS SERVICES SUPPLIERS MR WHEELER SAYS MCI'S SUPPORT OF A NATIONWIDE LICENSE WOULD THWART LOCAL COMPETITION 9307300100 930730 ABREAST OF THE MARKET INDUSTRIALS ADVANCE 1397 TO END WITHIN ONE POINT OF THE RECORD BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE CLIMBED TO WITHIN A POINT OF A RECORD AS INVESTORS CAST ASIDE DOWNBEAT ECONOMIC NEWS AND CONCENTRATED ON A RALLY IN BONDS THE INDUSTRIAL AVERAGE SPENT MUCH OF THE AFTERNOON JUST ABOVE THE 356770 RECORD SET MONDAY BUT DROPPED BACK JUST BEFORE THE CLOSE TO END WITH A GAIN OF 1397 OR 039 TO 356742 BROADER INDEXES POSTED SOMEWHAT LARGER GAINS AND BIG BOARD ADVANCERS OUTPACED DECLINERS BY A HEALTHY 1249TO740 MARGIN VOLUME WAS ACTIVE AT 260795610 BUT BELOW WEDNESDAY'S 269791190 THE RALLY CAME DESPITE A SERIES OF DISAPPOINTING DEVELOPMENTS YESTERDAY MORNING THE COMMERCE DEPARTMENT ESTIMATED GROSS DOMESTIC PRODUCT GREW AT AN ANNUAL RATE OF 16 IN THE SECOND QUARTER SHORT OF THE 22 PACE ANALYSTS HAD LARGELY FORECAST THE LABOR DEPARTMENT MEANWHILE SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE BY A HIGHER THAN EXPECTED 43000 LAST WEEK SEPARATELY THE BUNDESBANK SURPRISED INVESTORS WHO WERE LOOKING FOR AGGRESSIVE INTEREST RATE REDUCTIONS THE GERMAN CENTRAL BANK CUT THAT COUNTRY'S LOMBARD RATE A HALF POINT TO 775 BUT LEFT THE IMPORTANT DISCOUNT RATE UNCHANGED MANY OBSERVERS HAD BEEN HOPING FOR SHARPLY LOWER INTEREST RATES IN GERMANY WHICH COULD HELP TO BOOST EUROPEAN ECONOMIES AND US COMPANIES' OVERSEAS PROFITS BUT WHILE GERMAN INTEREST RATES DISAPPOINTED INVESTORS THE NEWS ON DOMESTIC RATES WAS EXHILARATING LONGTERM GOVERNMENT BONDS JUMPED NEARLY 1 1/4 POINTS SENDING THE YIELD ON THE 30YEAR TREASURY DOWN TO 657 JUST ABOVE THE HISTORICAL LOW IN ADDITION TO THEIR ECONOMIC AND EARNINGS BENEFITS LOW RATES HELP THE STOCK MARKET BY MAKING THE POTENTIAL RETURNS OF EQUITY INVESTMENTS LOOK MORE ATTRACTIVE RELATIVE TO INTERESTBEARING INVESTMENTS WILLIAM DODGE MARKET STRATEGIST AT DEAN WITTER REYNOLDS MEANWHILE SAID HE BELIEVES POSITIVE CORPORATE EARNINGS REPORTS HELPED LIFT STOCKS YESTERDAY THE BASIC TREND OF EARNINGS IS VERY MUCH IN LINE WITH EXPECTATIONS AND THAT HAS HAD A SUPPORTING INFLUENCE ON STOCKS HE SAID THE STANDARD & POOR'S 500STOCK INDEX INCREASED 305 OR 068 TO 45024 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 148 OR 060 TO 24934 AND THE DOW JONES EQUITY MARKET INDEX ADVANCED 276 OR 065 TO 42778 THE S&P 500 IS 13 BELOW ITS RECORD 45633 AND THE BIG BOARD COMPOSITE IS 08 OFF ITS PEAK OF 25136 BOTH HIGHS HAVE STOOD SINCE MARCH 10 FOUNDATION HEALTH PLUMMETED 11 1/4 OR 352 TO 20 3/4 AFTER THE RANCHO CORDOVA CALIF MANAGED HEALTHCARE SERVICES PROVIDER LOST A DEPARTMENT OF DEFENSE CONTRACT WHICH IN THE PAST PROVIDED 40 OF ITS ANNUAL REVENUE THE PACT INSTEAD WENT TO AETNA LIFE & CASUALTY WHICH JUMPED 2 1/4 TO 60 ALLIEDSIGNAL GAINED 2 1/2 TO 71 3/8 THE MORRISTOWN NJ AVIATION AND AUTOMOBILE PRODUCTS MAKER REPORTED SECONDQUARTER NET INCOME OF 121 A SHARE UP FROM 99 CENTS A YEAR AGO XEROX ADVANCED 1 1/4 TO 73 5/8 EVEN THOUGH THE STAMFORD CONN OFFICE EQUIPMENT CONCERN'S SECONDQUARTER EARNINGS FELL TO 96 CENTS A SHARE FROM 112 A YEAR EARLIER GENERAL MOTORS ADDED 1/2 TO 47 1/2 AFTER IT REPORTED SECONDQUARTER EARNINGS OF 92 CENTS A SHARE REVERSING A YEARAGO LOSS OF 118 WHICH INCLUDED A 97CENT RESTRUCTURING CHARGE THE RESULTS LARGELY MET ANALYSTS' EXPECTATIONS CHRYSLER JUMPED 1 1/8 TO 43 3/4 IT SAID PRICES FOR ITS 1994 CARS WILL BE AN AVERAGE OF JUST 18 ABOVE THIS YEAR'S LEVELS AVERAGE TRUCK PRICES WILL BE UP LESS THAN 1 FORD MOTOR INCREASED 1 1/8 TO 53 1/8 MERRILL LYNCH INCREASED ITS INTERMEDIATETERM RATING ON THE AUTO MAKER'S STOCK TO ABOVE AVERAGE FROM NEUTRAL WALT DISNEY CO LOST 1 1/8 TO 38 5/8 EXCLUDING THE EFFECT OF SEVERAL ACCOUNTING CHANGES THE ENTERTAINMENT CONCERN'S EARNINGS WERE 45 CENTS A SHARE JUST ABOVE ITS YEARAGO PROFIT OF 41 CENTS SEVERAL INSURERS GAINED AFTER UPBEAT EARNINGS NEWS FROM MEMBERS OF THAT GROUP AMERICAN INTERNATIONAL CLIMBED 3 TO 137 7/8 AFTER THE NEW YORK COMPANY REPORTED SECONDQUARTER PROFIT OF 227 A SHARE UP FROM A YEARAGO 198 LINCOLN NATIONAL ROSE 2 3/8 TO 40 3/8 THE FORT WAYNE IND CONCERN'S SECONDQUARTER EARNINGS JUMPED TO 123 A SHARE FROM 74 CENTS THE AMERICAN INTERNATIONAL RESULTS AREN'T ADJUSTED FOR A STOCK SPLIT TO BE PAID TODAY ITT CORP ADVANCED 1 3/8 TO 88 3/4 THE NEW YORK CONCERN'S SECONDQUARTER EARNINGS JUMPED TO 215 A SHARE FROM 84 CENTS A YEAR EARLIER BOTH FIGURES ARE AFTER SEVERAL ONETIME ITEMS CABOT CORP INCREASED 1 1/2 TO 50 1/2 AFTER IT REPORTED A PROFIT OF 94 CENTS A SHARE FOR THE THIRD QUARTER ENDED JUNE 30 THE BOSTON SPECIALTY CHEMICAL MAKER EARNED 84 CENTS A YEAR EARLIER THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 181 OR 042 TO 43659 THERE WERE 272 GAINERS AND 263 DECLINERS 9307300099 930730 POTOMAC WATCH POLITICAL CIVILITY' AND OTHER CLINTON MIRACLES BY PAUL A GIGOT DESPITE ITS MANY PROBLEMS I AM WARMING TO THE CLINTON PRESIDENCY WHATEVER ELSE CAN BE SAID ABOUT IT THIS BRAVE NEW ERA IS PROVING TO BE EDUCATIONAL OFTEN SPECTACULARLY SO DEBATES THAT RAGED THROUGH THE 1980S ARE NOW BEING SETTLED IN THE MOST SURPRISING AND EVEN SATISFYING WAYS THIS ACHIEVEMENT DESERVES MORE RECOGNITION IN ONLY SIX MONTHS PRESIDENT CLINTON AND HIS TEAM HAVE SOMEHOW PERSUADED THE WASHINGTON ESTABLISHMENT TO BELIEVE THINGS THAT WERE UNIMAGINABLE AS RECENTLY AS WELL LAST JAN 19 CONSIDER WARMING THE HEARTS OF THOSE OF US FOND OF QUOTING ALEXANDER ENERGY IN THE EXECUTIVE HAMILTON MR GORE SAID THAT CONGRESSIONAL SHACKLES HAVE LIMITED EXECUTIVE FLEXIBILITY HE IS NOW AN OBVIOUS CHOICE TO WRITE FOR THE NEXT EDITION OF THE THE IMPERIAL CONGRESS BY THE HERITAGE FOUNDATION PERHAPS HE'LL BE JOINED BY HIS PRESIDENT WHO IS NOW PROPOSING TO WRITE AN EXECUTIVE ORDER TO CONTROL ENTITLEMENT SPENDING AND PROVIDE COVER FOR DEMOCRATS AN ASSAULT ON CONGRESS'S POWER OF THE PURSE THAT MAKES US LINEITEM VETO SUPPORTERS LOOK LIKE PIKERS BY THE WAY HAS ANYONE HEARD THE WAR POWERS ACT INVOKED LATELY REGARDING US TROOPS NOW IN THEIR EIGHTH MONTH IN SOMALIA I GUESS THAT'S SETTLED TOO BACK IN THE GREED DECADE DEMOCRATS HAD ASKED FOR THIS HIRING INFO TO TRIP UP REPUBLICAN NOMINEES BUT LAST WEEK NOT A SINGLE DEMOCRAT OBJECTED TO HER RECORD AND MS GINSBURG OFFERED NO APOLOGY MR HATCH NATURALLY CONCLUDED THAT THE DEBATE OVER RACIAL QUOTAS MUST BE OVER A CHARGE OF DISCRIMINATION WILL NOW REQUIRE MORE PROOF THAN SIMPLE NUMBERS AND LET'S NOT FORGET WHAT CLINTON NOMINEES ELEANOR ACHESON AND WEBB HUBBELL HAVE DONE TO REHABILITATE MEMBERSHIP IN ALLWHITE COUNTRY CLUBS CIVILRIGHTS AGITATOR RALPH NEAS CALL YOUR OFFICE IF YOU'RE A BONDHOLDER A STOCKPICKER AND YOU CAN EXPLOIT NEW JERSEY SEN BILL BRADLEY'S NEW JERSEYPUERTO RICO TAX SUBSIDY YOU HAVE HIT THE 1990S TRIFECTA I GUESS THIS MEANS TAX INCENTIVES MATTER AFTER ALL FRANKLY I'M RELIEVED I HAD FEARED THAT SOMEONE MIGHT RECALL THAT RICKI SEIDMAN WAS ONE OF THOSE SENATE AIDES WHO TARRED AND FEATHERED CLARENCE THOMAS IN HER NEW POSITION AS A SENIOR WHITE HOUSE AIDE SHE MIGHT HAVE BEEN THE TARGET OF RETRIBUTION THANK GOD SHE CAN NOW REST EASY THIS NEW BIGHEARTED TOLERANCE IS EVEN WILLING TO EXPLAIN AWAY SMALLTIME EMBEZZLEMENT IN A GESTURE THAT MUST PLEASE OLLIE NORTH'S SECURITYFENCE SALESMAN THE ALLEGATION THAT DAN ROSTENKOWSKI MIGHT HAVE SWAPPED STAMPS FOR A MERE 21000 IN CASH IS SAID TO BE PUZZLING AND PENNYANTE STUFF WE EVEN HEAR TALK OF PROSECUTORIAL ABUSE WHICH CAN ONLY MEAN THAT LAWRENCE WALSH IS SHUTTING DOWN HIS IRANCONTRA INVESTIGATION MAYBE WE CAN ALL NOW AGREE THAT ETHICS RULES SHOULDN'T BE USED AS A POLITICAL WEAPON AT LEAST NOT AGAINST DEMOCRATS OTHER STUNNING LESSONS OF THE CLINTON ERA INCLUDE THE FACT THAT GAYS SHOULD STAY IN THE MILITARY CLOSET PAT BUCHANAN WAS RIGHT ABOUT RUNAWAY IMMIGRATION LOBBYING FOR FOREIGN DICTATORS AS COMMERCE SECRETARY RON BROWN ONCE DID FOR HAITI'S DUVALIER IS A NOBLE CALLING REP HENRY HYDE IS RIGHT TO BAR TAXPAYER FUNDING FOR ABORTIONS AND NOMINEES SHOULDN'T BE DENIED OFFICE BASED ONLY ON WHAT THEY ONCE SAID JOYCELYN ELDERS ALL OF THIS IN JUST SIX MONTHS IN THE EXPECTATION THAT WE WILL LEARN EVEN MORE IN THE NEXT 42 MONTHS READERS MAY WANT TO SEND IN THEIR OWN REVELATIONS JUST ADDRESS THEM TO AMAZING LESSONS OF THE CLINTON YEARS CARE OF ME AND THIS NEWSPAPER IF THE NOMINATIONS WARRANT WE'LL REPRINT THEM TO GIVE MR CLINTON THE CREDIT HE DESERVES THE MOST INVENTIVE CONTRIBUTOR WILL DESERVE BUT WILL HAVE TO GO OUT AND BUY A REMAINDERED COLLECTION OF MICHAEL KINSLEY COLUMNS NOW I SUPPOSE SOME READERS MIGHT ATTRIBUTE ALL OF THIS CHANGE IN WASHINGTON TO POLITICAL EXPEDIENCY OR EVEN HYPOCRISY BUT NOT ME IN THE SPIRIT OF THE NEW CIVILITY I PREFER TO BELIEVE THAT WASHINGTON'S ELITES HAVE GROWN AS FOLKS HERE LIKE TO SAY MATURING WITH THE BURDENS AND ACCOUNTABILITY OF TOTAL POWER OF COURSE I COULD BE WRONG 9307300098 930730 COMMODITIES AUGUST GOLD SURGES TO 39780 IN LATE RALLY AMID CONTINUED CURRENCY INSTABILITY IN EUROPE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A LATESESSION RALLY PROPELLED GOLD TO THE BRIM OF THE SYMBOLIC 400 LEVEL AS TRADERS AND INVESTORS SNAPPED UP THE PRECIOUS METAL AMID CONTINUED CURRENCY INSTABILITY IN EUROPE ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY SURGED 440 TO SETTLE AT 39780 AN OUNCE IN HEAVY VOLUME FOR A BRIEF TIME THE AUGUST CONTRACT HAD TRADED AS HIGH AS 401 AN OUNCE BEFORE PROFITTAKING WHIPPED IT BACK DOWN TRADERS SAID THE LATE SURGE IN THE AUGUST CONTRACT MARKED THE FIRST TIME THAT THE SPOT GOLD CONTRACT HAS TRADED ABOVE 400 SINCE MIDJANUARY 1991 WHAT A MOVE AT THE CLOSE SAID SCOTT MEYERS SENIOR COMMODITIES ANALYST WITH REDEL TRADING IN NEW YORK IT LOOKED GOOD GOING INTO THE CLOSE BUT ONCE THE AUGUST CONTRACT BROKE THROUGH 396 WE HAD MASSIVE BUY ORDERS FLOOD THE MARKET THE REDEL ANALYST WHO FOLLOWS LONGERTERM PRICE TRENDS SAID THAT GOLD APPEARS TO HAVE BROKEN OUT OF ITS RECENT RANGE I IMAGINE WE SHOULD SEE SOME FOLLOWTHROUGH FRIDAY TODAY THE WAY THE MARKET CLOSED I SUSPECT LONDON WILL KEEP THINGS FIRM HE SAID THAT PROFITTAKING AND SOME FORWARD SELLING BY PRODUCERS IS LIKELY TO TEMPER FURTHER SHORTTERM GAINS IN OVERSEAS TRADING LATE THURSDAY THE SPOT CONTRACT WAS CHANGING HANDS CONSISTENTLY ABOVE 400 IAN MACDONALD CHIEF METALS TRADER AT CREDIT SUISSE IN NEW YORK SAID THAT SPOT GOLD WAS TRADING IN SYDNEY AT 40050 WE'VE DEFINITELY BROKEN THROUGH THE CHART POINTS NOW THE NEXT RESISTANCE LEVEL SHOULD BE AROUND 425 AN OUNCE MR MACDONALD ECHOING OTHER ANALYSTS POINTED TO ACTION BY THE BUNDESBANK GERMANY'S CENTRAL BANK EARLIER IN THE DAY AS THE CHIEF CATALYST TO GOLD'S BIG MOVE IN PARTICULAR HE SAID THE BUNDESBANK'S FAILURE TO CUT ITS KEY DISCOUNT RATE SPARKED TURMOIL WITHIN THE EUROPEAN EXCHANGE RATE MECHANISM BY PUTTING RENEWED DOWNWARD PRESSURE ON THE FRENCH FRANC AND DANISH KRONE THAT INSTABILITY HE SAID ENCOURAGED A FLIGHT TO GOLD AS A HAVEN THIS RALLY HAS BEEN FUELED BY THE ERM CRISIS WHICH IS NOT LIKELY TO END ANYTIME SOON HE SAID OTHERS AGREED THIS TYPE OF INSTABILITY IS THE TYPE OF THING THAT BULL MARKETS IN THE PRECIOUS METALS ARE MADE OF SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IT OUTWEIGHS THE INFLATION FACTOR IN IMPORTANCE TO THE GOLD MARKET THE ACTIVE BUT DISTANT DECEMBER CONTRACT CLIMBED 440 YESTERDAY TO SETTLE AT 40220 TRADERS SAID THAT THE DECEMBER CONTRACT'S SETTLEMENT ABOVE 400 WASN'T PARTICULARLY SIGNIFICANT BECAUSE OF THE SUBSTANTIAL CARRYING CHARGES EXCEEDING 4 PER CONTRACT ATTACHED DECEMBER GOLD HOWEVER DID ACHIEVE A LIFEOFCONTRACT HIGH IN INTRADAY TRADING AT 403 OTHER GOLD ANALYSTS NOTED THAT THE PRECIOUS METAL A TRADITIONAL HEDGE AGAINST INFLATION MAY HAVE BENEFITED FROM THE GERMAN LOMBARD RATE CUT IN MORE WAYS THAN ONE THE LOWER GERMAN RATES RAISE THE SPECTER OF INFLATION NOW SUBDUED IN EUROPE TO COME ROARING BACK OVER THE PAST SEVERAL MONTHS THEY OBSERVED GOLD HAS SURGED IN THE IMMEDIATE WAKE OF INTERESTRATE REDUCTIONS BY THE BUNDESBANK WHICH FOR YEARS HAS ENJOYED A REPUTATION AS THE CONTINENT'S FIERCEST ANTIINFLATION WATCHDOG GERMAN INFLATION HAS BEEN VERY HIGH HISTORICALLY AROUND 42 AND THERE ARE CONCERNS THAT IT MAY REMAIN HIGH SAID JEFFREY CHRISTIAN MANAGING DIRECTOR OF CPM GROUP A PRECIOUSMETALS CONSULTANCY IN NEW YORK IF INFLATION CONTINUES TO BE HIGH AND WORRISOME IN GERMANY THAT WILL STIMULATE GERMAN INVESTMENT DEMAND FOR GOLD WHICH WE'RE SEEING HE SAID ON AN INTERNATIONAL BASIS HE ADDED LOWER GERMAN INTEREST RATES AND HIGHER GERMAN INFLATION MAKE THE MARK LESS ATTRACTIVE IF THE DEUTSCHE MARK LOOKS LESS ATTRACTIVE THAT BENEFITS GOLD AS WELL SILVER AT ITS HIGHEST LEVEL IN MORE THAN THREE YEARS SETTLED FIVE CENTS HIGHER AT 522 AN OUNCE ON THE COMEX FOR THE SEPTEMBER CONTRACT IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS WHEAT FUTURES PRICES PLUNGED ON IMPROVING WEATHER FORECASTS IN DRENCHED GROWING AREAS AND PESSIMISM ABOUT THE PROSPECTS FOR US WHEAT EXPORTS THIS YEAR THE MIDSUMMER DELUGE IN WHEATGROWING REGIONS OF KANSAS NEBRASKA MISSOURI AND THE DAKOTAS SEEMS TO HAVE STOPPED ALTHOUGH THE WINTER WHEAT CROP IS THOUGHT TO HAVE BEEN SUBSTANTIALLY DAMAGED BY THE WETNESS ANALYSTS SAY THERE IS STILL TIME FOR THE SPRING WHEAT CROP TO FLOURISH A GOOD CROP OF WHEAT THIS YEAR WOULD EXERT STRONG DOWNWARD PRESSURE ON FUTURES PRICES BECAUSE OF THE POOR PROSPECTS FOR PURCHASES BY FOREIGN COUNTRIES WHILE SOME ESTIMATES CALLED FOR CHINA A TRADITIONALLY BIG BUYER TO PURCHASE AS MUCH AS 4 MILLION METRIC TONS OF US WHEAT THIS YEAR ANALYSTS ARE NOW SCALING BACK THEIR ESTIMATES TO AS LITTLE AS 2 MILLION TO 25 MILLION METRIC TONS AT THE CHICAGO BOARD OF TRADE YESTERDAY WHEAT FOR DECEMBER DELIVERY SLIPPED 6 CENTS TO 317 A BUSHEL MEANWHILE CORN FOR DECEMBER DELIVERY WAS DOWN 175 CENTS TO 24475 A BUSHEL ALSO ON PERCEPTIONS THAT IMPROVING WEATHER COULD ENHANCE WHAT WAS PREVIOUSLY EXPECTED TO BE A DISAPPOINTING CROP THE CORN IS IN ITS TASSLING STAGE THE FIRST PART OF THE CRUCIAL POLLINATION PROCESS THAT DETERMINES HOW MANY KERNELS WILL BE ON EACH EAR GOOD WEATHER IS ESPECIALLY IMPORTANT DURING POLLINATION ANALYSTS SAY IN SOYBEAN FUTURES TRADING THE PRICE OF THE ACTIVELY TRADED NOVEMBER CONTRACT ROSE TWO CENTS TO 692 A BUSHEL 9307300097 930713 LEVITT PLANS LARGE SALE OF STOCK ON EVE OF HEARING ON SEC POST BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT'S ONE HECK OF A GARAGE SALE FOR A JOB THAT PAYS 123100 A YEAR ARTHUR LEVITT JR EN ROUTE TO BECOMING CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION INTENDS TO UNLOAD AT LEAST 2 MILLION IN STOCK INCLUDING MORE THAN 1 MILLION IN AMERICAN EXPRESS CO SHARES THE FORMER AMERICAN STOCK EXCHANGE CHAIRMAN SAID HE ALSO WILL SELL HIS STAKE IN ROLL CALL THE TWICEWEEKLY TABLOID THAT COVERS CAPITOL HILL MR LEVITT VALUED THE STAKE AT MORE THAN 1 MILLION IN A MEMORANDUM TO THE SEC'S ACTING GENERAL COUNSEL MR LEVITT SAID HE WILL SELL HIS AMERICAN EXPRESS STOCK AND DIVEST MY OTHER PUBLIC SECURITIES HOLDINGS TO AVOID POSSIBLE CONFLICTS OF INTEREST DESPITE THE SALES MR LEVITT WILL STILL HOLD A BUNDLE ACCORDING TO THE FINANCIAL DISCLOSURE STATEMENT HE FILED WITH THE US OFFICE OF GOVERNMENT ETHICS AT THE TOP OF THE HEAP MORE THAN 1 MILLION IN US TREASURY NOTES HE ALSO IS HOLDING ONTO VARIOUS REAL ESTATE INVESTMENTS AS WELL AS STOCK IN FOUR PUBLIC COMPANIES AND SHARES IN FOUR MUTUAL FUNDS AND MR LEVITT SAID HE INTENDS TO KEEP HIS BULGARIAN CURRENCY VALUED AT BETWEEN 50001 AND 100000 THE PROCEEDS FROM THE ASSET SALES WILL BE INVESTED IN MUTUAL FUNDS MR LEVITT SAID IN THE MEMORANDUM ACCOMPANYING THE DISCLOSURE REPORT THE REPORT WAS MADE PUBLIC ON THE EVE OF MR LEVITT'S CONFIRMATION HEARING SCHEDULED FOR TODAY BEFORE THE SENATE BANKING HOUSING AND URBAN AFFAIRS COMMITTEE MR LEVITT ISN'T EXPECTED TO HAVE ANY TROUBLE WINNING CLEARANCE FROM THE COMMITTEE HE WAS AT THE SEC'S HEADQUARTERS HERE YESTERDAY AND COULDN'T BE REACHED FOR COMMENT DESPITE THE SIGNIFICANT EFFORTS TO AVOID CONFLICTS OF INTEREST MR LEVITT SAID HE STILL WILL RECUSE HIMSELF FROM SEC ACTIONS DIRECTLY AFFECTING EITHER THE AMERICAN STOCK EXCHANGE OR THE AGENCY'S ELECTRONIC DATA GATHERING AND RETRIEVAL SYSTEM BETTER KNOWN AS EDGAR THE NOMINEE WAS CHAIRMAN OF THE AMEX FOR 11 YEARS BEFORE STEPPING DOWN IN MAY 1989 WHILE HE SAID HE PLANS TO DISQUALIFY HIMSELF FROM MATTERS THAT DIRECTLY INVOLVE THE EXCHANGE HE SAID HE WILL CONSIDER ISSUES INVOLVING ALL OF THE EXCHANGES AS FOR EDGAR THE SEC'S TROUBLED EFFORT TO COMPUTERIZE CORPORATE FILINGS MR LEVITT HOLDS A DIRECTOR'S SEAT AS WELL AS COMMON STOCK IN BDM HOLDINGS INC THE PRIMARY CONTRACTOR OPERATING THE EDGAR PROJECT MR LEVITT SAID HE PLANS TO SELL THE STOCK BUT WILL NEVERTHELESS DISQUALIFY HIMSELF FROM CONSIDERING EDGAR ACTIONS FOR A YEAR HE SAID HE WILL NAME ONE OF THE SEC COMMISSIONERS TO OVERSEE THE PROJECT IN THE INTERIM IN ADDITION THE NOMINEE SAID HE WILL RESIGN AS A DIRECTOR OF BDM HOLDINGS AND FIVE OTHER COMPANIES OR FOUNDATIONS MR LEVITT REPORTED EARNING A TOTAL OF 168742 A YEAR AS A MEMBER OF THE BOARDS OF FIRST EMPIRE STATE CORP EQUITABLE COS' EQUITABLE LIFE ASSURANCE SOCIETY OF THE US UNIT THE ROCKEFELLER FOUNDATION WR GRACE CO'S BAKER & TAYLOR CO UNIT SHARED MEDICAL SYSTEMS CORP AND BDM THE DISCLOSURE REPORT DOESN'T SPECIFY THE NUMBER OF SHARES HE OWNS IN EACH OF THE 25 COMPANIES IN WHICH HE HOLDS STOCK INSTEAD THE REPORT PROVIDES A RANGE OF VALUES FOR EACH ASSET LISTED FOR INSTANCE MR LEVITT'S STAKE IN WALT DISNEY CO IS VALUED AT BETWEEN 250001 TO 500000 FOR ALL FOUR OF THE PUBLIC COMPANIES IN WHICH MR LEVITT IS RETAINING HIS SHARES THE TOTAL VALUES RANGE FROM 565004 TO 1150000 FOR SENTIMENTAL AND INVESTMENT REASONS HE PLANS TO KEEP HIS STOCK IN FIRST EMPIRE STATE AMERICAN HOME PRODUCTS CO SOUTHWESTERN ENERGY CO AND BRISTOLMYERS SQUIBB CO BUT WILL RECUSE HIMSELF FROM ANY SEC ACTIONS INVOLVING THE COMPANIES OF THE ASSETS THAT MR LEVITT IS GIVING UP TWO MAY BE HURTFUL TO BOTH HIS WALLET AND HIS HEART THE AMERICAN EXPRESS STAKE LITERALLY OFF THE CHARTS OF THE GOVERNMENT DISCLOSURE FORM AT MORE THAN 1 MILLION WAS BUILT UP OVER YEARS AND YEARS FROM NAME CHANGE TO NAME CHANGE SINCE MR LEVITT AND HIS PARTNERS FOUNDED A WALL STREET SECURITIES FIRM IN THE EARLY 1960S THAT EVENTUALLY BECAME PART OF AMERICAN EXPRESS MORE MEANINGFUL TO THE NOMINEE ACCORDING TO RECENT INTERVIEWS ARE HIS PUBLISHING HOLDINGS HE BOUGHT ROLL CALL IN 1986 AND SOLD A MINORITY STAKE IN IT ONLY THIS YEAR WHEN THE LONDONBASED ECONOMIST MAGAZINE BOUGHT IN THE ECONOMIST A UNIT OF ECONOMIST NEWSPAPER LTD IS EXPECTED TO BUY HIS REMAINING STAKE THE NOMINEE ACQUIRED HIS OTHER MAJOR PUBLISHING VENTURE IN 1989 WHEN HE BOUGHT STAGEBILL THE THEATER MAGAZINE DISTRIBUTED PRIMARILY IN CONCERT HALLS STAGEBILL ISN'T FOR SALE MR LEVITT GAVE IT TO HIS DAUGHTER BAKER & TAYLOR INC IS A PRIVATELY HELD COMPANY BASED IN STAMFORD CONN AN ARTICLE JULY 13 INCORRECTLY LISTED THE COMPANY AS A UNIT OF WR GRACE CO BAKER & TAYLOR WAS ACQUIRED FROM WR GRACE IN MARCH 1992 BY SENIOR MANAGEMENT AND THE CARLYLE GROUP 9307300096 930730 WESTDEUTSCHE LANDESBANK FACES EEOC COMPLAINT NEW YORK A RACE DISCRIMINATION COMPLAINT AGAINST WESTDEUTSCHE LANDESBANK GIROZENTRALE OF GERMANY WAS FILED WITH THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN NEW YORK CITY IN THE COMPLAINT LAMOTH E FREDERICK A FORMER VICE PRESIDENT WHO IS BLACK STATES THAT HE WAS SUBJECTED TO INTENTIONAL DISCRIMINATION ON ACCOUNT OF HIS RACE ERIC J WALLACH MR FREDERICK'S ATTORNEY SAID MR FREDERICK WAS TRANSFERRED TO A NONEXISTENT POSITION IN THE FINANCE DEPARTMENT LAST SEPTEMBER MR FREDERICK WHO LEFT WESTLB IN MAY JOINED THE GERMAN BANK IN 1991 WHEN IT ACQUIRED SECURITY PACIFIC BANK'S TRADE FINANCE GROUP GERARD BARTON VICE PRESIDENT OF HUMAN RESOURCES AT WESTLB SAID THE BANK WASN'T AWARE THAT AN EEOC COMPLAINT HAD BEEN FILED HE DECLINED TO COMMENT SAYING THE MATTER WAS CONFIDENTIAL 9307300095 930730 WHO'S NEWS MIT EXPECTED TO NAME PROFESSOR AS SLOAN DEAN CAMBRIDGE MASS MASSACHUSETTS INSTITUTE OF TECHNOLOGY IS EXPECTED TO NAME MARKETING PROFESSOR GLEN L URBAN TO SUCCEED ECONOMIST LESTER C THUROW AS DEAN OF ITS SLOAN SCHOOL OF MANAGEMENT PROF URBAN AN MIT FACULTY MEMBER FOR 27 YEARS WAS SLOAN'S DEPUTY DEAN FROM 1987 TO 1991 MIT IS EXPECTED TO ANNOUNCE THE APPOINTMENT TODAY DR THUROW 55 YEARS OLD HAD ANNOUNCED HIS INTENTION TO LEAVE THE POSITION PROF URBAN 53 SAID HE PLANS TO REVISE SLOAN'S CURRICULUM AND HIRE THREE TO FIVE SUPERSTAR FACULTY MEMBERS IN MARKETING ORGANIZATIONAL BEHAVIOR MANAGEMENT AND ACCOUNTING ALTHOUGH HE PLEDGED TO CONTINUE MR THUROW'S DRIVE TO PUSH MORE STUDENTS INTO MANUFACTURING CAREERS PROF URBAN'S PLANS WOULD INDICATE A SHIFT IN EMPHASIS FOR SLOAN A WELLRANKED MANAGEMENT SCHOOL WHOSE REPUTATION HAS BEEN LINKED TO MIT'S UNDERGRADUATE STRENGTHS IN TECHNOLOGY WE HAVE A STRONG TECHNICAL SIDE BUT I THINK WE COULD USE SOME ADDED RESOURCES IN THESE OTHER AREAS PROF URBAN SAID PROF URBAN SAID HE ALSO WILL REVISE SLOAN'S MASTER'S DEGREE CURRICULUM TO BE MORE CAREER ORIENTED 9307300094 930730 TECHNOLOGY & HEALTH EPA NOTES SURPLUS IN US EQUIPMENT CONTROLLING POLLUTION WASHINGTON THE US HAS THE WORLD'S LARGEST TRADE SURPLUS IN ENVIRONMENTAL PROTECTION EQUIPMENT ACCORDING TO AN ENVIRONMENTAL PROTECTION AGENCY STUDY THE STUDY WHILE GOOD NEWS FOR US INDUSTRY COULD PROVE AN EMBARRASSMENT FOR THE CLINTON ADMINISTRATION WHICH HAS BASED ITS ARGUMENTS FOR INCREASED ENVIRONMENTAL REGULATION AND MORE GOVERNMENT FUNDING FOR THE POLLUTIONCONTROL INDUSTRY PARTLY ON THE INDUSTRY'S SUPPOSEDLY WEAK POSITION IN THE WORLD MARKETPLACE VICE PRESIDENT AL GORE IN A MAY INTERVIEW WITH THE WALL STREET JOURNAL SAID OTHER NATIONS ARE NOW MOVING MORE AGGRESSIVELY THAN WE ARE TO CAPTURE THEIR SHARE OF THIS ENORMOUS MARKET OUR RELATIVE POSITION HAS DECLINED DRAMATICALLY BUT THE STUDY RELEASED YESTERDAY SAID US EXPORTS IN ENVIRONMENTAL PROTECTION EQUIPMENT SURGED SINCE THE MID1980S SURPASSING EVEN GERMANY THE PREVIOUS LEADER IN 1991 THE US TRADE SURPLUS IN POLLUTIONCONTROL EQUIPMENT WHICH WAS 11 BILLION IN 1991 HAS INCREASED STEADILY SINCE 1989 ACCORDING TO THE REPORT AT A NEWS CONFERENCE TO ANNOUNCE THE REPORT DAVID GARDINER EPA ASSISTANT ADMINISTRATOR FOR POLICY PLANNING AND EVALUATION SAID THE DATA SHOULDN'T LURE THE US INDUSTRY INTO COMPLACENCY AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT GERMANY'S EXPORTS OF POLLUTIONCONTROL EQUIPMENT REMAIN FOUR TIMES AS GREAT AS US EXPORTS MR GARDINER SAID HE CONCEDED HOWEVER THAT THIS PARTLY IS BECAUSE GERMANY HAS A MUCH SMALLER DOMESTIC MARKET 9307300093 930730 HEALTH MORE ALLIANCES IN DRUG FIELD ARE EXPECTED BY MICHAEL WALDHOLZ AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MORE DRUG MAKERS BUFFETED BY PRICE COMPETITION ARE LIKELY TO FORM ALLIANCES WITH DRUG MARKETERS IN COMING MONTHS SEVERAL PHARMACEUTICAL EXECUTIVES SAID MERCK & CO'S DECISION TO PAY A WHOPPING 6 BILLION TO BUY MEDCO CONTAINMENT SERVICES INC THE NATION'S LARGEST PROVIDER OF MAILORDER MEDICINES HAS SPARKED TURMOIL IN THE INDUSTRY AS DRUG MAKERS STRUGGLE TO FIGURE OUT IF AND HOW THEY SHOULD MEET THE CHALLENGE MERCK LAID DOWN SOME INDUSTRY INSIDERS SAY MERCK PAID TOO DEARLY AND MOVED MORE AGGRESSIVELY THAN NECESSARY TO ACQUIRE A DISCOUNT MARKETER THEY ARGUE THAT MERCK DID SO BECAUSE IT SAW PROFIT GROWTH SLOWING AS IT FAILED TO DEVELOP BIGSELLING NEW MEDICINES AS QUICKLY AS IT HOPED THE SHADOW THAT OVERHANGS THIS DEAL IS MERCK'S FAILURE TO PRODUCE INNOVATIVE DRUGS THAT CAN COMMAND HIGH PRICES SAYS HEMANT SHAH AN INDUSTRY CONSULTANT IN WARREN NJ BUT EVEN WITH BIG NEW DRUGS COMPANY OFFICIALS AND INDUSTRY FOLLOWERS AGREE RECENT EXTRAORDINARY PRESSURES FROM LARGE GOVERNMENT AND CORPORATE HEALTH INSURERS TO KEEP DOWN PRESCRIPTION DRUG PRICES WILL FORCE A DRUGINDUSTRY RESTRUCTURING I'M NOT CERTAIN MOST OTHER DRUG COMPANIES YET FULLY UNDERSTAND WHAT A REVOLUTIONARY STEP MERCK HAS TAKEN TO CONTROL THE MARKETING OF PRESCRIPTION MEDICINES SAYS RICHARD VIETOR A DRUGINDUSTRY ANALYST WITH MERRILL LYNCH & CO MERCK AS USUAL IS JUST WAY AHEAD OF WHERE THE REST OF THE INDUSTRY IS GOING TO HAVE TO GO TALKS WITH COMPANY INSIDERS INDICATE THAT AT LEAST ONE OTHER DRUG COMPANY APPEARS TO BE LOOKING TO FORM STRATEGIC ALLIANCES WITH THE FASTGROWING AND POWERFUL PHARMACY DISCOUNTERS WHO COMPETE WITH MEDCO AND INVESTORS AT LEAST ARE BETTING THAT THE MERCK/MEDCO DEAL COULD BE THE START OF A SERIES OF DRUGINDUSTRY ACQUISITIONS OF MANAGEDCARE PHARMACY GROUPS IN THE PAST TWO DAYS SHARES OF DIAGNOSTEK INC AND CAREMARK INTERNATIONAL INC COMPANIES THAT OPERATE BIG MAILORDER PHARMACY BUSINESSES HAVE CLIMBED MORE THAN 10 MCKESSON CORP WHICH RUNS THE PCS CARDBASED PROGRAM USED AT RETAIL PHARMACIES HAS SEEN ITS STOCK SURGE ABOUT 5 WE'RE SEEING A CHANGE IN HOW PRESCRIPTION DRUGS ARE BEING MARKETED SAYS NUNZIO DESANTO CHIEF EXECUTIVE OF DIAGNOSTEK A SIZABLE MEDCO COMPETITOR THE BUYER NOW REALLY CONTROLS HOW DRUGS ARE BEING DISPENSED AS DRUG COMPANIES LOOK FOR WAYS TO KEEP THEIR PROFITS GROWING HE PREDICTS I THINK WE'RE GOING TO SEE MORE CONSOLIDATION AND MERGERS FOR ALL THE EBULLIENCE IN SOME QUARTERS A SIZABLE FACTION OF THE DRUG INDUSTRY CONTENDS THAT MERCK MAY BE MOVING TOO FAST WITH ITS MEDCO ACQUISITION SOME DRUG COMPANIES SAY THEY WILL BE LESS INCLINED TO SELL TO MEDCO AT DEEP DISCOUNTS ONCE IT IS OWNED BY MERCK AND SOME DISCOUNT PHARMACY GROUPS SAY THEY THINK MEDCO COULD LOSE STANDING WITH BIG HEALTH PLANS WHICH MAY WORRY THAT ITS ABILITY TO STOCK THE MOST COSTEFFECTIVE DRUGS COULD BE COMPROMISED BY CLOSE TIES TO MERCK THE EXECUTIVE AND OTHERS SAID THEY EXPECTED BIG DRUG COMPANIES TO FORM MARKETING CONSORTIA TO SELL A PACKAGE OF DISCOUNTED PRESCRIPTION PRODUCTS TO MANAGEDCARE PLANS LARGE HOSPITAL BUYERS AND DIRECTLY TO BIG EMPLOYERS ESSENTIALLY ACCOMPLISHING WHAT MERCK WANTS TO DO WITH MEDCO THE EXECUTIVES SAID THE DRUG MAKERS EVEN MAY INVITE GENERIC DRUG COMPANIES TO JOIN THE MARKETING VENTURES MARION MERRELL DOW INC RECENTLY ACQUIRED ITS OWN GENERIC DRUG BUSINESS FOR THIS PURPOSE AND MERCK AND OTHER COMPANIES HAVE INVESTED OR FORMED GENERIC VENTURES IN RECENT MONTHS CHARLES SANDERS CHAIRMAN OF GLAXO HOLDINGS PLC'S US OPERATIONS IN RESEARCH TRIANGLE NC SAID HIS COMPANY WON'T MAKE MARKETING ACQUISITIONS BECAUSE WE HAVE SPENT SIX YEARS DEVELOPING STRONG RELATIONSHIPS WITH LARGE MANAGEDCARE COMPANIES BUT HE ACKOWLEDGES THAT EVERY DRUG COMPANY RIGHT NOW HAS TO FIGURE OUT HOW TO MARKET THEIR PRODUCTS WHILE KEEPING PRICES DOWN SUCCESSFUL STRATEGY MEDCO'S SALES EXPLODED TO ABOUT 22 BILLION IN CALENDAR 1992 FROM 20 MILLION 10 YEARS AGO AS A GOBETWEEN OFFERING TO PROVIDE ALL THE PHARMACEUTICAL NEEDS OF AN EMPLOYER AT A SET PRICE OR AT A SET DISCOUNT AS MEDCO'S CUSTOMERS MULTIPLIED GROWING TO INCLUDE SOME OF THE NATION'S LARGEST CORPORATIONS MEDCO WAS ABLE TO WRING DEEP DISCOUNTS FROM DRUG MAKERS IN RETURN FOR ASSURING THEY WOULD BE INCLUDED IN ITS BENEFITS PACKAGE JERRY T JACKSON A MERCK EXECUTIVE VICE PRESIDENT SAID COMPETITORS HAVE YET TO COMPREHEND MERCK'S ACTION THOSE UPSET WITH THE DEAL ARE REACTING EMOTIONALLY RIGHT NOW MR JACKSON SAID HE SAID HE BELIEVES COMPETING DRUG MAKERS WILL WANT THEIR PRODUCTS TO BE INCLUDED IN THESE PACKAGES LEST THEY LOSE OUT ON SALES MERCK IN TRUMPETING ITS MERGER WITH MEDCO SAID IN AN ADVERTISEMENT IN TODAY'S WALL STREET JOURNAL THAT THE DEAL WILL COMPLETE THE CYCLE OF DRUG DELIVERY INCLUDING MONITORING UTILIZATION THROUGH MEASURING OUTCOMES AND INITIATING NEW RESEARCH MEANWHILE SEVERAL ANALYSTS FOCUSED ON MCKESSON'S PCS UNIT AS A POTENTIAL ACQUISITION CANDIDATE MICHAEL SGRO AN ANALYST AT NATWEST SECURITIES CORP TOLD CLIENTS THAT PCS COULD COMMAND A VALUE OF 1 BILLION BASED ON ESTIMATED ANNUAL REVENUE OF 130 MILLION AND OPERATING PROFIT OF 40 MILLION WE'RE NOT IMPLYING THAT MCKESSON'S PCS OPERATIONS ARE FOR SALE BUT WE THINK IT'S APPROPRIATE TO CONSIDER WHAT THIS OPERATION MIGHT BE WORTH MR SGRO SAID A MCKESSON SPOKESMAN SAID IT'S VERY DIFFICULT TO RESPOND TO TAKEOVER SPECULATION ADDING WE THINK MCKESSON IS VERY WELL SUITED TO CONTINUE MANAGING THE BUSINESS SEPARATELY THE PACIFIC STOCK EXCHANGE SAID IT IS WORKING CLOSELY WITH THE SECURITIES AND EXCHANGE COMMISSION TO INVESTIGATE RECENT TRADING IN MEDCO OPTIONS AN EXCHANGE SPOKESMAN SAID THAT WITH THE ANNOUNCEMENT OF THE MERCK/MEDCO DEAL IT WILL GO BACK AND LOOK AT THE TRADING MORE CLOSELY TO SEE IF THERE'S ANY POSSIBLE CONNECTION THAT MIGHT LEAD ONE TO SUSPECT THERE WAS ANY INSIDER TRADING TAKING PLACE THAT WILL INCLUDE AN EXAMINATION OF CUSTOMER FILES OF THE FIRMS INVOLVED IN THE TRADING HE ADDED A SPOKESMAN FOR THE SEC IN WASHINGTON DC DECLINED TO COMMENT ON THE INVESTIGATION 9307300092 930730 INTERNATIONAL ITALY'S IRI AGREES TO SELL INTEREST IN FOOD CONCERN SPECIAL TO THE WALL STREET JOURNAL ROME ITALY'S STATE HOLDING COMPANY IRI AGREED TO SELL ITS 62 STAKE IN ITALGEL SPA A FROZEN FOODS AND SWEETS MANUFACTURER TO NESTLE SA FOR 437 BILLION LIRE 282 MILLION THE SALE OF ITALGEL REPRESENTS IRI'S FIRST LARGE PRIVATIZATION SINCE THE GOVERNMENT ANNOUNCED LAST YEAR IT WOULD EMBARK ON A MAJOR ASSET SALES PROGRAM IRI FORMALLY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE IS HARDPRESSED TO SELL ASSETS BECAUSE IT'S FACING HEAVY LOSSES MAINLY DUE TO SERVICING ITS MAMMOTH DEBT NESTLE PLEDGED TO MAKE A TENDER OFFER AT THE SAME TERMS THAT IS 1550 LIRE A SHARE FOR THE 38 OF ITALGEL HELD BY MINORITY HOLDERS AS A RESULT NESTLE WILL HAVE TO LAY OUT A TOTAL OF 7035 BILLION LIRE TO ACQUIRE 100 OF ITALGEL ITALGEL POSTED PROFIT OF 221 BILLION LIRE IN 1992 ON REVENUE OF 735 BILLION LIRE IT EMPLOYS 1400 PEOPLE NESTLE A SWISS FOODS GIANT THAT ALREADY HAS A LARGE PRESENCE IN ITALY SAID THE PURCHASE WOULD FACILITATE ITS ENTRY INTO NEW SECTORS OF THE ITALIAN MARKET 9307300091 930730 MARKETING & MEDIA TIME WARNER'S ATARI UNIT DEALT SETBACK ON PATENTS SAN FRANCISCO A FEDERAL JURY RULED THAT TIME WARNER INC'S ATARI GAMES UNIT INFRINGED ON CERTAIN PATENTS OF NINTENDO OF AMERICA INC ANOTHER WIN FOR NINTENDO IN THE LONGRUNNING PATENT FIGHT BETWEEN THE TWO VIDEOGAME MAKERS DAMAGES WEREN'T SET ANY DAMAGES WILL BE DECIDED IN ANOTHER PROCEEDING NINTENDO A UNIT OF JAPAN'S NINTENDO LTD SAID IN MAY A FEDERAL JUDGE RULED THAT ATARI HAD INFRINGED ON A NINTENDO PATENT RELATED TO A SECURITY SYSTEM NINTENDO PUTS IN ITS GAMES SYSTEMS HOWEVER ATARI ASKED A JURY TO DETERMINE WHETHER THAT PATENT WAS VALID YESTERDAY THE JURY UNANIMOUSLY HELD THAT NINTENDO'S PATENT WAS VALID AND THE JUDGE ENTERED A JUDGMENT THAT ATARI HAD INFRINGED ON THE NINTENDO PATENT THE COMPANIES STILL HAVE SEVERAL LAWSUITS PENDING AGAINST EACH OTHER ATARI GAMES SAID IT WILL APPEAL THE RULING THE CONCERN ISN'T RELATED TO ATARI CORP OF SUNNYVALE CALIF 9307300090 930730 MARKETING & MEDIA BARNEY GETS A RECORD DEAL WITH THORN EMI UNIT NEW YORK BARNEY THE HEAVILY LICENSED DINOSAUR CHARACTER THAT CHILDREN LOVE IS STOMPING ITS WAY INTO MUSIC EMI RECORDS GROUP A UNIT OF LONDON'S THORN EMI PLC SAID IT WILL SHIP TO STORES THE FIRST IN A PLANNED SERIES OF BARNEY ALBUMS ON COMPACT DISK AND AUDIOCASSETTE DANIEL GLASS PRESIDENT AND CHIEF EXECUTIVE OF EMI RECORDS GROUP SAID THE COMPANY HAS RECEIVED ORDERS FOR AT LEAST 15 MILLION UNITS OF BARNEY'S FAVORITES VOLUME 1 IT IS THE FIRST APPEARANCE OF THE PURPLE CHARACTER MADE FAMOUS BY A PUBLIC BROADCASTING SERVICE TV SHOW ON A MAJOR RECORD LABEL BARNEY'S TUNES WILL BE DISTRIBUTED BY EMI RECORDS GROUP TO NONTRADITIONAL OUTLETS SUCH AS TOY BOOK AND DRUG STORES AND GROCERY CHAINS AS WELL AS MUSIC STORES EMI RECORDS SIGNED BARNEY'S CREATORS LYONS GROUP IN ALLEN TEXAS TO A MULTIYEAR DEAL FOR A MINIMUM OF THREE ALBUMS THE FIRST IS EXPECTED TO BE IN STORES AUG 31 AND WILL BE PRICED AT 998 FOR TAPE AND 1598 FOR CD 9307300089 930730 BUSINESS BRIEFS UNIVERSAL CORP'S UNIVERSAL LEAF TOBACCO CO IN A JOINT VENTURE WITH CHINA WILL EQUIP A PROCESSING PLANT IN CHINA'S ANHUI PROVINCE BY LATE 1994 UNIVERSAL WILL USE THE PLANT TO PRODUCE TOBACCO FOR EXPORT GROW GROUP INC A CHEMICAL COATINGS AND PAINTS MAKER SAID DIRECTORS APPROVED A CONTRACT TO PURCHASE ZYNOLYTE PRODUCTS CO CARSON CALIF FOR 163 MILLION GENERAL ELECTRIC CO RECEIVED ENGINE ORDERS VALUED AT 33 MILLION FROM AIRTOURS INTERNATIONAL AVIATION MANCHESTER ENGLAND TO POWER TWO BOEING AIRCRAFT TRANSTECHNOLOGY CORP'S ELECTRONICS DIVISION ACQUIRED THE ASSETS OF ELECTRICAL SPECIALTIES CO PEORIA ILL TERMS WEREN'T DISCLOSED LEASEWAY TRANSPORTATION WILL EMERGE FROM CHAPTER 11 IN A MONTH AS ITS CREDITORS AND A US BANKRUPTCY COURT APPROVED LEASEWAY'S AMENDED REORGANIZATION PLAN DELTA QUEEN STEAMBOAT CO RECEIVED FEDERAL BANKRUPTCY COURT APPROVAL TO ACQUIRE AMERICAN HAWAII CRUISES FOR 30 MILLION A SCHULMAN INC A SUPPLIER OF PLASTIC COMPOUNDS AND RESINS PLANS TO BUILD A 15 MILLION PLASTIC COMPOUNDING FACILITY IN SAN LUIS POTOSI MEXICO TO OPEN IN THE SECOND HALF OF 1994 9307300088 930730 FOREIGN EXCHANGE GERMAN STANCE ON RATES SENDS ERM TO BRINK THIS ARTICLE WAS PREPARED BY WALL STREET JOURNAL STAFF REPORTERS MICHAEL SESIT AND GLENN WHITNEY IN LONDON AND TERENCE ROTH IN FRANKFURT GERMANY'S DECISION TO HOLD FAST AGAINST MOUNTING PRESSURE TO CUT KEY INTEREST RATES PUSHED EUROPE'S 14YEAROLD EXCHANGE RATE MECHANISM THE HEART OF EUROPEAN MONETARY UNITY TO THE BRINK OF COLLAPSE THERE'S A HIGH POSSIBILITY THE ERM COULD JUST FALL APART IN THE NEXT TWO DAYS SAID IAN GUNNER AN INTERNATIONAL ECONOMIST AT CHASE MANHATTAN BANK IN LONDON THE CREDIBILITY OF THE ERM IN ITS CURRENT FORM HAS BEEN COMPLETELY DESTROYED THE DECISION BY GERMANY'S BUNDESBANK NOT TO LOWER ITS DISCOUNT RATE AS MANY TRADERS AND INVESTORS HAD EXPECTED TRIGGERED SHARP DROPS IN SEVERAL EUROPEAN CURRENCIES AS WELL AS STRONG RALLIES IN EUROPEAN STOCK AND BOND MARKETS ANALYSTS SAID THE COLLAPSE OF THE ERM WOULD SET THE STAGE FOR FURTHER INTERESTRATE DECLINES AND HUGE RALLIES IN STOCK AND BOND MARKETS IN EUROPE AS WELL AS A SOLIDIFICATION OF THE DOLLAR'S STRENGTH ALL OTHER THINGS EQUAL FALLING INTEREST RATES TEND TO DEPRESS CURRENCY VALUES ON THE DOWNSIDE THE BIGGEST IMPACT OF AN ERM BREAKUP WOULD BE TO RAISE DOUBTS ABOUT OTHER EUROPEAN EFFORTS TOWARD INTEGRATION SUCH AS THE MOVE TO A SINGLE EUROPEAN MARKET FOR GOODS CAPITAL AND LABOR THOSE DOUBTS WOULD MAKE INVESTMENT DECISIONS MORE DIFFICULT AND WOULD MAKE IT HARDER FOR EXPORTERS TO PRICE GOODS SENT TO EUROPE AND WITHIN EUROPEAN COUNTRIES THE GREATEST CONCERN FOR US INVESTORS WOULD BE THE LIKELIHOOD THAT THE DOLLAR WOULD APPRECIATE SHARPLY AS EUROPEAN INTEREST RATES FALL WHICH COULD SIGNIFICANTLY ERODE THE VALUE OF THEIR EUROPEAN INVESTMENTS THE EUROPEAN TURMOIL BOOSTED THE DOLLAR IN LATE NEW YORK TRADING THE DOLLAR STOOD AT 17410 MARKS AND 10645 YEN COMPARED WITH 17175 MARKS AND 10580 YEN ON WEDNESDAY THE BRITISH POUND FELL TO 14820 FROM 14965 A DAY EARLIER ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10608 YEN AND AT 17398 MARKS THE NEXT STEP APPEARS TO BE UP TO FRANCE WHICH HAS BORNE THE ECONOMIC BRUNT OF GERMANY'S POLICY OF MAINTAINING HIGH INTEREST RATES THE BUNDESBANK'S DECISION GIVES FRANCE A VERY CLEAR CHOICE IT'S UP TO THEM TO BEAR THE COSTS OF STAYING IN THE ERM SAID PAUL O'BRIEN AN ECONOMIST AT JP MORGAN IN PARIS THE BUNDESBANK IS GOING TO TAKE CARE OF ITS DOMESTIC NEEDS IT'S NOT GOING TO HELP ON RATES EUROPEAN GOVERNMENTS AND THE FRENCH IN PARTICULAR DESPERATELY WANTED GERMAN COOPERATION SO THEY TOO COULD LOWER INTEREST RATES AND JUMPSTART THEIR AILING ECONOMIES WHILE KEEPING THE EUROPEAN MONETARY SYSTEM INTACT BY MOVING CAUTIOUSLY THE BUNDESBANK PUT GERMANY'S CONCERNS OVER INFLATION AHEAD OF ITS NEIGHBORS' NEED FOR AN ECONOMIC BOOST ANALYSTS SAID THE GERMAN CENTRAL BANK DID CUT ITS LOMBARD RATE WHICH ACTS AS A CEILING ON GERMAN SHORTTERM INTEREST RATES BY HALF A POINT TO 775 BUT INVESTORS AND SPECULATORS WHO HAD ANTICIPATED A HALFPOINT REDUCTION IN THE IMPORTANT DISCOUNT RATE WHICH STANDS AT 675 DISMISSED THE LOMBARD CUT AS A MERE TOKEN FURTHER ANALYSTS SAID THE BUNDESBANK DIDN'T SEND ANY OTHER SIGNAL TO THE MARKETS THAT IT WOULD SOON LOWER RATES OR EVEN THAT IT WAS ESPECIALLY CONCERNED ABOUT THE SURVIVAL OF THE EMS AND THE ERM INDEED THE BUNDESBANK EFFECTIVELY HAS TAKEN THE FATE OF THE EMS AWAY FROM POLICY MAKERS AND TOSSED IT INTO THE HANDS OF SKITTISH FINANCIAL MARKETS WE HAD A CONFLICT SITUATION WHICH IS NOT NEW TO US SAID A HIGHRANKING BUNDESBANK OFFICIAL WHO INSISTED ON ANONYMITY WHEN SPEAKING TO A SMALL GROUP OF REPORTERS AFTER THE DECISION HE ACKNOWLEDGED THAT RECENTLY REKINDLED TENSIONS OVER THE ERM MIGHT HAVE WARRANTED MORE DECISIVE ACTION ON RATES BUT HE EXPLAINED THAT UNEXPECTED EXPANSION IN RECENT GERMAN INFLATION AND MONEYSUPPLY INDICATORS WERE AN OVERRIDING FACTOR DOMESTICALLY THERE WAS NO CLEAR INDICATION TO SUPPORT ANOTHER REDUCTION IN INTEREST RATES THE BUNDESBANK OFFICIAL SAID HE ADDED THAT THE GERMAN CENTRAL BANK TRIED TO TAKE A MIDDLE ROAD BETWEEN WHAT IS NEEDED IN THE EMS AND INFLATION CONCERNS AT HOME BUT CURRENCY TRADERS VIEWED THE BUNDESBANK ACTION AS MUCH LESS THAN A MIDDLE ROAD IMMEDIATELY UPON THE ANNOUNCEMENT OF THE BUNDESBANK'S ACTION THEY STARTED DUMPING THE CURRENCIES OF FRANCE DENMARK SPAIN PORTUGAL AND BELGIUM WITH A VENGEANCE PROMPTING MASSIVE INTERVENTION BY THEIR CENTRAL BANKS IN CONCERT WITH THE BUNDESBANK AND SEVERAL OTHERS WHILE THE INTERVENTION SUCCEEDED TEMPORARILY IN KEEPING THE ERM INTACT IT FAILED TO SIGNIFICANTLY BOLSTER THE BELEAGUERED CURRENCIES THOSE CURRENCIES HAVE BEEN UNDER STEADY PRESSURE IN RECENT WEEKS AS SPECULATORS BET THAT THE DOMESTIC POLITICAL AND ECONOMIC PRESSURES ARISING FROM EUROPE'S DEEP RECESSION WOULDN'T ALLOW THOSE COUNTRIES TO KEEP INTEREST RATES HIGH AS CURRENCIES TUMBLED EUROPEAN STOCK AND BOND MARKET INVESTORS BEGAN BUYING HEAVILY IN ANTICIPATION THAT THE ERM CRISIS WOULD RESULT IN DEEP INTEREST RATE CUTS AS EACH NATION MOVED TO SHORE UP ITS OWN ECONOMY FRENCH STOCKS GAINED 23 DANISH SHARES ROSE 2 AND BRITISH STOCKS CLOSED 12 HIGHER THE FRENCH DANISH AND SPANISH BOND MARKETS RALLIED WE HAD A BRILLIANT TRADING DAY SAID PIERRE COURT A DEALER AT CREDIT SUISSEFIRST BOSTON IN PARIS A LOT OF INVESTORS ARE BETTING THE FRANC WILL BE DEVALUED OR LEAVE THE ERM HE ADDED HOWEVER THAT HE THOUGHT THE FRENCH GOVERNMENT WOULD HOLD STEADY HOW WILLING FRANCE WILL BE TO SWALLOW HIGHER INTEREST RATES IS THE MAJOR QUESTION FACING THE ERM DURING THE NEXT FEW DAYS ALREADY THERE ARE SIGNS THAT THE CONSERVATIVE COALITION THAT TOOK OVER THE FRENCH GOVERNMENT IN THE SPRING IS LOSING PATIENCE WITH THE POLICY IN LIGHT OF UNEMPLOYMENT NEARING 12 AND A COMFORTABLY LOW INFLATION RATE OF LESS THAN 2 ANNUALLY IN A MEASURE OF JUST HOW ACUTELY SENSITIVE THE CRISIS HAS BECOME A SENIOR ECONOMIST AT A LEADING FRENCH COMMERCIAL BANK SAID HIS BOSSES BARRED HIM LAST WEEK FROM MAKING ANY PUBLIC STATEMENTS ABOUT THE FRANC THE AUTHORITIES ARE GOING TO FIGHT ON TO DEFEND THE FRANC BUT IT'S GOING TO BE VERY DIFFICULT HE SAID SUDDENLY SUSPENDING MEMBERSHIP OF THE ERM DOESN'T SEEM SO CRAZY ANY MORE SOME ANALYSTS SUGGEST THAT THE DEFENSE OF THE FRANC MIGHT INCLUDE EXCHANGE CONTROLS BY RESTRICTING BORROWING OF FRANCS THE FRENCH GOVERNMENT WOULD SQUEEZE THE SOCALLED SHORTSELLERS WHO BORROWED FRANCS IN THE HOPE OF BEING ABLE TO BUY THEM BACK CHEAPER AT A LATER DATE SIMILAR CONTROLS WERE IMPOSED IN IRELAND AND SPAIN DURING LAST YEAR'S ERM CRISIS THEY WERE SUCCESSFUL INITIALLY BUT SUSTAINED LOWLEVEL SELLING PRESSURE EVENTUALLY FORCED BOTH THE PUNT AND PESETA TO BE DEVALUED ANYWAY EVEN IF FRANCE CHOOSES TO ABANDON THE ERM THE MECHANISM MIGHT NOT COLLAPSE COMPLETELY SEVERAL ECONOMISTS SAID A TEMPORARY SUSPENSION OF THE SYSTEM TO ALLOW GERMANY TO REIN IN INFLATION WHILE OTHER EUROPEAN NATIONS COMBAT RECESSION COULD BE AN ALTERNATIVE TO COMPLETE COLLAPSE WE'RE BETTING THEY WILL SUSPEND THE SYSTEM TEMPORARILY ALLOWING COUNTRIES WITH HIGH UNEMPLOYMENT AND LOW INFLATION TO REDUCE THEIR INTEREST RATES TO APPROPRIATE LEVELS SAID PAUL CHERTKOW HEAD OF GLOBAL CURRENCY RESEARCH AT UNION BANK OF SWITZERLAND IN LONDON THERE ARE ANALYSTS WHO PREDICT THAT THE ERM IS MUCH FURTHER FROM DEMISE THAN MANY SUSPECT THEY ARGUE THAT BOTH GERMANY AND FRANCE ARE MUCH MORE COMMITTED TO THE MECHANISM THAN IS READILY APPARENT THEY CONTEND THAT GERMANY DOESN'T WANT TO BE BLAMED FOR DESTROYING THE POSSIBILITY OF A UNITED EUROPE EVEN IF ALL GERMANS AREN'T TOTALLY ENAMORED OF THE CONCEPT WHILE THE FRENCH SEE THE ERM AS A SYMBOL OF A UNITED EUROPE FRANCE KNOWS THAT THE REAL NEW EUROPE IS CENTERED AROUND GERMANY THAT'S WHY THEY WANT TO BE TIED TO GERMANY AT ALMOST ANY COST SAID PETER O'SHEA A MANAGING DIRECTOR AT MORGAN STANLEY INTERNATIONAL IN LONDON YET MANY ECONOMIC ANALYSTS QUESTION THE BUNDESBANK'S IF NOT GERMANY'S COMMITMENT TO A EUROPEAN MONETARY UNION KARL OTTO POEHL FORMER PRESIDENT OF THE BUNDESBANK NOW A PRIVATE BANKER AND FREED FROM HAVING TO ADHERE TO THE PARTY LINE DOESN'T MASK HIS SKEPTICISM OF THE PLAN BEING REALIZED OTHERS NOTE THAT THE BUNDESBANK WHEN EXPLAINING UNPOPULAR POLICIES REGULARLY FALLS BACK ON ITS CREDO THAT ITS CHIEF MANDATE IS TO DEFEND THE INTEGRITY OF THE MARK BY PROVIDING FOR PRICE STABILITY FREQUENTLY THAT MISSION HAS COME AT A HIGH PRICE TO OTHERS THE BUNDESBANK'S SUCCESSION OF INTERESTRATE INCREASES IN 1987 DEEPLY ANGERED US TREASURY OFFICIALS AND WAS AT LEAST PARTLY RESPONSIBLE FOR THE OCTOBER 1987 STOCK MARKET CRASH LAST YEAR'S ERM CRISIS WAS TRIGGERED AT LEAST PARTLY BY A COMBINATION OF UNDIPLOMATIC REMARKS REGARDING WEAKER CURRENCIES AND AN INCREASE IN BUNDESBANK INTEREST RATES TO RECORD LEVELS OVER THE PROTESTATIONS OF OTHER EUROPEAN NATIONS YET THE BUNDESBANK IS RARELY CRITICIZED AT HOME WHERE GERMANS PRAISE IT AS A BULWARK AGAINST THE INFLATION AND CURRENCY CRISES THAT IMPOVERISHED EARLIER GENERATIONS IN THIS CENTURY YESTERDAY THE BUNDESBANK WAS WIDELY PRAISED BY BUSINESS AND BANKING GROUPS FOR NOT YIELDING TO OUTSIDE PRESSURES TO REDUCE RATES TOO QUICKLY INDEED THE BUNDESBANK WAS EVEN CHIDED BY SOME FOR MAKING EVEN A TOKEN MOVE ON RATES OTTO LAMBSDORFF THE ECONOMICSPOLICY SPEAKER FOR THE FREE DEMOCRATIC PARTY THE JUNIOR PARTNER IN CHANCELLOR HELMUT KOHL'S COALITION GOVERNMENT SAID IN A STATEMENT THAT THURSDAY'S LOMBARD RATE CUT SENT OUT THE WRONG SIGNAL AND HE WARNED THAT IT ISN'T THE TASK OF MONETARY POLICY TO STABILIZE EXCHANGE RATES BUT TO PROVIDE FOR DOMESTIC PRICE STABILITY 9307300087 930730 MARKETING & MEDIA ADVERTISING CONEHEADS' TIEINS MAKE POINTS EVEN IF THE NEW MOVIE GOES FLAT BY KEVIN GOLDMAN ONE WEEK AFTER ITS PREMIERE IT'S CLEAR THAT PARAMOUNT PICTURES DOESN'T HAVE A BIG HIT ON ITS HANDS IN CONEHEADS THE ZANY MOVIE STARRING DAN AYKROYD AND JANE CURTIN AS TWO INHABITANTS OF THE PLANET REMULAK WHO COME TO CONQUER EARTH THE FILM GROSSED ONLY 71 MILLION IN ITS FIRST WEEKEND AND ANALYSTS ARE CALLING THE MOVIE THAT IS BASED ON CHARACTERS FROM THE 1976 SEASON OF TELEVISION'S SATURDAY NIGHT LIVE A DISAPPOINTMENT A DISAPPOINTMENT PERHAPS TO EVERYONE EXCEPT SURPRISINGLY THOSE ADVERTISERS WHO SIGNED BIG PROMOTIONAL TIEINS WITH THE PARAMOUNT COMMUNICATIONS UNIT'S MOVIE SUBWAY ASSOCIATES THE CHAIN OF SANDWICH RESTAURANTS BASED IN MILFORD CONN PLAYMATES TOYS WITH HEADQUARTERS IN LA MIRADA CALIF AND RJR NABISCO'S NABISCO FOODS GROUP BASED IN PARSIPPANY NJ SAY THEY AREN'T BOTHERED THAT CONEHEADS IS NO BLOCKBUSTER EACH COMPANY SAYS IT GOT OUT OF THE CONEHEADS WHAT IT WANTED SUBWAY IN PART RECEIVED A MAJOR ROLE IN THE MOVIE AS WELL AS APPLAUSE FROM OWNERS OF SOME OF ITS 8000 FRANCHISES FOR COMING UP WITH A BIG TICKET SUMMER PROMOTION PLAYMATES SOLD OUT ITS FIRST SHIPPING OF TINY CONEHEADS FIGURINES AND NABISCO LAUNCHED A NEW CRACKER TARGETED SPECIFICALLY TO TEENAGERS BY USING A CONTEST INVOLVING THE CHARACTERS WHILE MARKETERS OFTEN ARE THE BIG LOSERS WHEN MOVIES THEY TIE IN WITH DON'T HIT BIG THE CONEHEADS EXPERIENCE SUGGESTS THAT MODEST SUCCESS AND NONCONTROVERSIAL FILM CHARACTERS HAVE THEIR OWN ATTRACTIONS WE DIDN'T EXPECT THIS TO BE A MAJOR BOX OFFICE HIT SAYS DICK PILCHEN SUBWAY'S VICE PRESIDENT OF MARKETING BUT THIS WAS SAFE THE CHARACTERS WERE WELL KNOWN AND WERE RISK FREE THE CONEHEADS CHARACTERS POINTYHEADED ALIENS ARE A KNOWN QUANTITY ADDS IRA MAYER PUBLISHER OF THE ENTERTAINMENT MARKETING LETTER BASED IN BROOKLYN NY CONEHEADS' HAS AN IMAGE KIDS WERE ALREADY AWARE OF THIS HAS A POSITIVE EFFECT AND LESSENS THE RISK FOR THE COMPANY WITH THE TIEIN MARKETING AND COMMERCIAL TIEINS MAY HAVE ALREADY GENERATED MORE AWARENESS FOR CONEHEADS THAN THE MOVIE HAS CREATED ITSELF AUDIENCES MAY BALK AT PAYING 750 TO SEE A 109MINUTE VERSION OF WHAT WAS ORIGINALLY A FIVEMINUTE SKIT BUT DON'T APPEAR TO MIND SITTING THROUGH 30SECOND COMMERCIALS WITH THE ALIENS SUBWAY CONVERTED VIRTUALLY ALL OF ITS SCHEDULED TELEVISION ADVERTISING TO INCLUDE THE PROMOTION WITH CONEHEADS AND THE NABISCO DIVISION ADVERTISED HEAVILY ON CABLE'S MTV E AND COMEDY CENTRAL NETWORKS TO PUSH ITS FIRST MOVIE TIEIN IN THE SUBWAY SPOTS THE CHAIN USING A DAN AYKROYD LOOKALIKE WHO HAD TO BE APPROVED BY MR AYKROYD WHO COWROTE THE MOVIE SPOTLIGHTED ITS MASS QUANTITY MEAL DEAL THE PACKAGE INCLUDES A CONEHEADS PLASTIC CUP WHICH ALSO HAD TO BE APPROVED BY MR AYKROYD THE COMMERCIAL FEATURES THE WACKY SPECIAL EFFECT OF AN ALIEN SWALLOWING A SUBWAY SANDWICH IN ONE GULP TO THE AMAZEMENT OF A SUBWAY EMPLOYEE THE AD CRIBS FROM A SCENE IN CONEHEADS WHEN CONNIE A 16YEAROLD ALIEN TAKES HER BOYFRIEND TO A SUBWAY RESTAURANT HE IS FASCINATED BY HER ABILITY TO SLURP ENTIRE SANDWICHES IN ONE GULP SUBWAY OFTEN SCANS MOVIE SCRIPTS FOR POSSIBLE PROMOTIONAL TIEINS AND PRODUCT PLACEMENTS ONE OF ITS RECENT TIEINS WAS WITH THE ACTION FILM LETHAL WEAPON 2 IN THE ORIGINAL SCRIPT SUBMITTED TO SUBWAY SAYS MR PILCHEN THERE WAS A SCENE IN A MCDONALD'S DRIVEIN WHERE THE CHARACTERS COMPLAIN ABOUT NOT RECEIVING THE CORRECT ORDER MCDONALD'S PASSED ON THE OPPORTUNITY TO GET SLAPPED IN A MOVIE SUBWAY WHICH HAD ABOUT FIVE DRIVEINS WHEN THE MOVIE WAS RELEASED JUMPED MR PILCHEN SAYS SUBWAY WOULDN'T DO IT AGAIN BECAUSE ITS DRIVEIN BUSINESS HAS GROWN AND THE COMPANY NO LONGER WANTS TO HAVE TIES WITH RRATED MOVIES INSTEAD SUBWAY LIKES THE WHOLESOME FAMILYORIENTED FARE ITS NEXT TIEIN FOR EXAMPLE IS FOR THE RETROFILM BEVERLY HILLBILLIES BASED ON THE 1960S SITCOM SUBWAY ENDED UP TURNING TO CONEHEADS AFTER IT LOST OUT TO BURGER KING FOR THE LAST ACTION HERO IT IS SUBWAY HOWEVER WHO MAY HAVE COME OUT AHEAD BURGER KING DIDN'T EVEN HAVE TERRIFIC PRODUCT PLACEMENT IN HERO ONE OF ITS SIGNS WAS VISIBLE IN ONE SCENE THOUGH BURGER KING SAYS IT IS SATISFIED THE ARNOLD SCHWARZENEGGER MOVIE HASN'T BEEN ANYWHERE NEAR THE BLOCKBUSTER HIT ITS PRODUCER SONY'S COLUMBIA PICTURES WAS EXPECTING NABISCO HAS YET TO DETERMINE WHETHER IT WILL FORGE AHEAD WITH ADDITIONAL MOVIE TIEINS ALTHOUGH IT IS VERY HAPPY WITH THE EXPOSURE SAYS ANN SMITH MANAGER OF NABISCO PRODUCT COMMUNICATIONS NABISCO APPROACHED ENTERTAINMENT MARKETING COMMUNICATIONS INTERNATIONAL BASED IN STAMFORD CONN FOR A PROMOTIONAL VEHICLE TO LAUNCH ITS CRACKUPS SNACK FOOD BRAND THE CRACKER IS FOR TEENS AND THE MOVIE IS FOR TEENS SAYS MS SMITH WE THINK IT'S A PERFECT MATCH NABISCO'S PROMOTION IS A CRACKUP THE CONEHEADS CONTEST IN WHICH CONSUMERS ARE ASKED TO SEND IN JOKES ALAS NO ALIEN INCLUDING MR AYKROYD WILL ACTUALLY JUDGE THE YUCKS AND A SPOKESMAN FOR PLAYMATES SAYS THE COMPANY JUMPED THROUGH HOOPS TO GET CONEHEADS FIGURES INTO TOY STORES BY THE TIME THE MOVIE PREMIERED A WEEK AGO TODAY THE SLUGGISH BOX OFFICE PERFORMANCE ISN'T A CONCERN TO PLAYMATES IT'S TOO EARLY TO TELL HOW THE MOVIE WILL DO ULTIMATELY SAYS THE SPOKESMAN THERE IS A LOT OF COMPETITION OUT THERE AT THE MOVIE THEATER BUT WE THINK THE CONEHEADS' ARE SO WELL KNOWN THE BOX OFFICE FIGURES WON'T MATTER THAT MUCH TO OUR SALES THE MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH PICKED BOSTON AGENCY HOUSTON EFFLER & PARTNERS TO CREATE ADS IN AN ANTISMOKING DRIVE SET FOR SEPTEMBER EXPECTED ANNUAL BILLINGS ARE 20 MILLION THE ADS ARE PART OF A 50 MILLION QUITSMOKING EFFORT THAT THE STATE IS FUNDING WITH MONEY RAISED FROM AN EXCISE TAX ON CIGARETTES OTHER COMPONENTS OF THE DRIVE INCLUDE A TOLLFREE QUITSMOKING HOTLINE LAW ENFORCEMENT EFFORTS AIMED AT CURBING CIGARETTE SALES TO MINORS AND EVEN A SWEEPSTAKES WITH PRIZES FOR NEW QUITTERS SAID GREG CONNOLLY MASSACHUSETTS TOBACCO CONTROL PROGRAM DIRECTOR HOUSTON EFFLER TEAMED UP WITH THE BOSTON PUBLIC RELATIONS FIRM CONE COMMUNICATIONS FOR THE WIN ALSO PITCHING WERE HILL HOLLIDAY CONNORS COSMOPULOS INGALLS QUINN & JOHNSON AND HEATER/EASDON ADVERTISING ADS ARE SET TO START AIRING IN SEPTEMBER WE'RE GIVING TOBACCO COMPANIES NOTICE THAT WE'RE STARTING WAR TODAY DR CONNOLLY SAID ONE POSSIBLE CREATIVE APPROACH FOR THE ADVERTISING HE SAID WOULD BE TO PUT FORTH VICTIMS OF SMOKING SUCH AS JANET SACHMAN A FORMER LUCKY STRIKE MODEL WHOSE VOICEBOX HAS BEEN REMOVED DONALD EFFLER HOUSTON EFFLER PRESIDENT SAID WE DON'T TRY TO DEPICT THE TOBACCO COMPANIES AS BAD GUYS AS A RECENT ANTISMOKING CAMPAIGN IN CALIFORNIA DID OUR RESEARCH AMONG YOUTH SHOWS THAT'S NOT PARTICULARLY EFFECTIVE EVANS GROUP OF SALT LAKE CITY SAID IT AGREED TO BUY THE SAN FRANCISCO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM AND PLANS TO MERGE IT WITH ITS EXISTING OPERATIONS THERE CREATING A 48 MILLION AGENCY TERMS WEREN'T DISCLOSED JULIO DEULOFEU 45 WAS NAMED CHIEF EXECUTIVE OF THE NEW EVANS SHOP HE IS CURRENTLY PRESIDENT OF DDB'S SAN FRANCISCO OFFICE WITH ESTIMATED BILLINGS OF 32 MILLION MICK CUMMINS PRESIDENT OF EVANS'S SAN FRANCISCO SHOP WITH ESTIMATED BILLINGS OF 16 MILLION WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER JON JOHNSON PRESIDENT AND CHIEF EXECUTIVE OF EVANS GROUP SAID THE AGENCY DIDN'T EXPECT ANY CLIENT CONFLICTS TO ARISE FROM THE MERGER DDB WHICH HAS BEEN CLOSING DOWN OR SELLING REGIONAL OFFICES IN RECENT YEARS INCLUDING IN DENVER AND SACRAMENTO CALIF SAID THIS SALE WAS PART OF A STRATEGY TO CONCENTRATE OPERATIONS IN FEWER CITIES DAILY NEWS THE NEW YORK DAILY NEWS THE TABLOID OWNED BY REAL ESTATE DEVELOPER MORTIMER ZUCKERMAN PICKED ALLY & GARGANO NEW YORK FOR AN AD CAMPAIGN AIMED AT INCREASING CIRCULATION THE PAPER'S TAGLINE NEW YORK'S HOMETOWN PAPER WON'T BE PART OF THE NEW CAMPAIGN SAID MAL MACDOUGALL THE AGENCY'S VICE CHAIRMAN AND CHIEF CREATIVE OFFICER BILLINGS COULDN'T BE DETERMINED SCHWEPPES AT LEAST THREE AGENCIES ARE BELIEVED TO BE PITCHING IN THE AGENCY SEARCH UNDER WAY AT CADBURY SCHWEPPES PLC'S NORTH AMERICAN BEVERAGES GROUP UP FOR GRABS ARE THE SCHWEPPES HIRES AND CRUSH BRANDS PREVIOUSLY HANDLED BY AMMIRATI & PURIS OF NEW YORK WHICH RECENTLY RESIGNED FROM THE SCHWEPPES ACCOUNT THE CONTENDERS INCLUDE SAATCHI & SAATCHI'S CLIFF FREEMAN & PARTNERS GREY ADVERTISING AND FOOTE CONE & BELDING COMMUNICATIONS WHICH HANDLES CADBURY'S CANADA DRY LINE THE SCHWEPPES BRAND BILLED AN ESTIMATED 3 MILLION LAST YEAR 9307300086 930730 SOTHEBY'S CHRISTIE'S POST INCREASES IN AUCTION SALES NEW YORK SOTHEBY'S HOLDINGS INC REPORTED WORLDWIDE AUCTION SALES FOR THE 199293 SEASON ROSE 4 TO 119 BILLION WHILE RIVAL CHRISTIE'S INTERNATIONAL PLC SAID SALES ROSE 1 TO 105 BILLION WHILE THE GAINS WERE MODEST THEY REVERSED A THREEYEAR TREND OF DECLINING SALES TOTALS FOR THE ART SEASON FROM SEPTEMBER THROUGH JULY MICHAEL L AINSLIE SOTHEBY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE RESULTS WERE THE BEST INDICATION OF AN IMPROVING ART MARKET THAT WE'VE SEEN SINCE THE BEGINNING OF THE RECESSION MOREOVER MUCH OF THE IMPROVEMENT CAME IN 1993 HE SAID AUGURING WELL FOR THIS FALL'S ART SALES SALES OF IMPRESSIONIST AND MODERN PAINTINGS THE CHIEF MONEYMAKERS FOR THE AUCTION HOUSES ROSE SHARPLY FROM A YEAR EARLIER UP 87 AT SOTHEBY'S AND 48 AT CHRISTIE'S OTHER SECTORS OF THE ART MARKET THAT SHOWED MARKED RECOVERY WERE AMERICAN PAINTINGS MOVIE POSTERS AND MEMORABILIA ASIAN ART AND HISTORICAL MANUSCRIPTS PARTICULARLY MATERIAL SIGNED BY ABRAHAM LINCOLN HOWEVER PART OF THE SEASON'S GAINS WERE ATTRIBUTABLE TO AN INCREASE IN THE COMMISSIONS CHARGED BUYERS BOTH SOTHEBY'S AND CHRISTIE'S AS OF THIS YEAR CHARGE BUYERS OF ITEMS UNDER 50000 A 15 FEE UP FROM 10 9307300085 930730 ECONOMY MORE FOREIGN INVESTMENT IN AIRLINES WOULD HURT US INDUSTRY STUDY SAYS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INCREASED FOREIGN INVESTMENT TOUTED AS A WAY TO HELP THE US AIRLINE INDUSTRY ACTUALLY COULD COST US AIRLINES MORE THAN 1 BILLION A YEAR BY DIVERTING TRANSATLANTIC TRAFFIC TO FOREIGN CARRIERS A NEW STUDY SAYS THE REPORT SCHEDULED TO BE RELEASED TODAY BY A WASHINGTON THINK TANK IS LIKELY TO SPARK NEW DEBATE OVER SOCALLED CODESHARING AGREEMENTS THAT FOREIGN AIRLINES ARE GAINING AS PART OF THEIR INVESTMENTS IN US AIRLINES WITH CODESHARING AGREEMENTS LIKE ONE KLM ROYAL DUTCH AIRLINES GAINED BY INVESTING IN WINGS HOLDINGS INC'S NORTHWEST AIRLINES PASSENGERS CAN USE A US AND EUROPEAN CARRIER TO FLY FROM A SMALL CITY IN THE US TO A SMALL CITY IN EUROPE WITHOUT THE WORRIES ABOUT BAGGAGE TRANSFERS AND CONNECTIONS THAT OFTEN COME FROM FLYING ON TWO AIRLINES BUT IN PRACTICE THE AGREEMENTS SHIFT PASSENGERS TO FOREIGN CARRIERS FOR THE TRANSATLANTIC LEG OF THEIR JOURNEYS INSTEAD OF LOWERCOST US CARRIERS THAT NORMALLY WOULD GET MOST OF THE MARKET ACCORDING TO THE ECONOMIC STRATEGY INSTITUTE WHICH CONDUCTED THE STUDY THE THINK TANK WHICH HAS TAKEN A HARD LINE ON TRADE ISSUES AND IS FINANCED LARGELY BY AMERICAN MANUFACTURERS AND UNIONS ESTIMATED THAT IF BRITISH AIRWAYS WERE ABLE TO EXPAND ITS NEW CODESHARING AGREEMENT WITH USAIR GROUP TO THE ENTIRE USAIR NETWORK OTHER US AIRLINES WOULD LOSE 350 MILLION IN REVENUE A YEAR FROM PASSENGERS SWITCHING TO THE CODESHARING CARRIERS AND IF OTHER LARGE EUROPEAN AIRLINES WERE TO DO THE SAME THE ANNUAL DIVERSION WOULD BE 11 BILLION A SUM THAT WOULD EQUAL 17 OF THE TRANSATLANTIC MARKET AND WOULD QUICKLY CANCEL THE BENEFITS TO PARTICULAR AIRLINES OF THE FOREIGN INVESTMENTS THE RESEARCH GROUP SAYS RUBBISH SAYS BRITISH AIRWAYS WHICH HEARD SIMILAR ARGUMENTS EARLIER THIS YEAR FROM OPPONENTS OF ITS INVESTMENT IN USAIR I DON'T KNOW WHAT CRYSTAL BALL THESE GUYS HAVE GOT BUT IT'S NOT A VERY GOOD ONE SAID SANDY GARDINER A NEW YORKBASED SPOKESMAN FOR BRITISH AIRWAYS HE SAID THE CALCULATION DIDN'T TAKE INTO ACCOUNT THE ADDITIONAL TRAFFIC USAIR GETS FROM EUROPE MR GARDINER ALSO SAID IT WILL TAKE A YEAR TO LEARN HOW MUCH TRANSATLANTIC TRAFFIC BRITISH AIRWAYS IS DIVERTING FROM US AIRLINES BUT THE ISSUE IS LIKELY TO BE DEBATED LONG BEFORE THAT FOR ONE THING THE US AND BRITAIN HAVE BEGUN NEGOTIATIONS ON A NEW BILATERAL AVIATION AGREEMENT THE CLINTON ADMINISTRATION EARLIER THIS YEAR APPROVED BRITISH AIRWAYS' 300 MILLION INVESTMENT IN USAIR WITH THE UNDERSTANDING THAT PROGRESS WOULD BE MADE IN OPENING BRITAIN TO US AIRLINES ALSO OTHER AIRLINES ARE SEEKING CODESHARING AGREEMENTS INCLUDING GERMANY'S LUFTHANSA WHICH IS SAID TO BE TALKING TO UAL GROUP'S UNITED AIRLINES GERMANY WOULD NEED A NEW TREATY WITH THE US IN ORDER FOR LUFTHANSA TO GAIN FULL ACCESS TO US CITIES 9307300084 930730 NATIONAL INTERGROUP HAD 1STPERIOD PROFIT PREDICTS GAIN FOR YEAR DALLAS NATIONAL INTERGROUP INC RETURNED TO THE BLACK IN THE FISCAL FIRST QUARTER AFTER TWO STRAIGHT QUARTERS OF LOSSES BUT ITS RESULTS TRAILED YEAREARLIER NET INCOME DESPITE A 30 INCREASE IN REVENUE BUOYED BY THE IMPROVEMENT NATIONAL INTERGROUP PREDICTED THAT ITS EARNINGS FOR THE FISCAL YEAR WOULD TOP THE 211 MILLION PROFIT IT REPORTED LAST YEAR BEFORE A NET CHARGE OF 205 MILLION THE CHARGE WAS MOSTLY TO COVER UNPAID BILLS FROM PHARMOR INC A MAJOR CUSTOMER THAT FILED FOR BANKRUPTCY COURT PROTECTION LAST YEAR FOR THE QUARTER ENDED JUNE 30 THE COMPANY POSTED NET INCOME OF 53 MILLION OR 20 CENTS A SHARE ON SALES OF 13 BILLION THAT COMPARED WITH YEAREARLIER NET OF 74 MILLION OR 29 CENTS A SHARE ON SALES OF 1 BILLION NET INCOME FIGURES INCLUDE A TAX BENEFIT OF 19 MILLION IN THE CURRENT YEAR AND 27 MILLION A YEAR EARLIER PERSHARE AMOUNTS ARE AFTER PAYMENT OF PREFERRED DIVIDENDS NATIONAL INTERGROUP SAID ITS EARNINGS DECLINE WAS CAUSED PRIMARILY BY REDUCED EARNINGS FROM ITS LARGEST SUBSIDIARY 805OWNED FOXMEYER CORP OPERATING EARNINGS FOR THE PHARMACEUTICALS DISTRIBUTOR FELL TO 88 MILLION IN THE QUARTER FROM 122 MILLION A YEAR AGO DUE TO COSTS RELATED TO CHANGING ITS PRODUCT MIX DEVELOPING NEW INFORMATION SYSTEMS AND OPENING A NEW DISTRIBUTION FACILITY THE COMPANY SAID THAT BEN FRANKLIN RETAIL STORES INC A 67OWNED UNIT POSTED A 13 MILLION OPERATING LOSS IN THE QUARTER UP FROM 957000 A YEAR EARLIER BECAUSE OF A SEASONAL SALES DOWNTURN UNUSUALLY SEVERE WINTER WEATHER AND A GENERALLY SLUGGISH ECONOMY FOR RETAILERS 9307300083 930730 CREDIT RATINGS CHIQUITA BRANDS INTERNATIONAL INC CINCINNATI MOODY'S INVESTORS SERVICE INC DOWNGRADED 11 BILLION OF CHIQUITA BRANDS INTERNATIONAL LONGTERM DEBT SAYING IT IS CONCERNED ABOUT THE FOOD COMPANY'S OUTLOOK FOR THE NEXT 18 MONTHS GIVEN THE CONTINUED UNCERTAIN OUTLOOK FOR THE BANANA INDUSTRY WHICH IS SUFFERING FROM CROP DISEASE STRICT EUROPEAN TRADE BARRIERS AND OVERSUPPLY WHEN MOODY'S IN NEW YORK PLACED THE DEBT UNDER REVIEW ON MAY 18 IT SAID THE OUTCOME WOULD HINGE ON A RECOVERY IN BANANA PRICES AND A TIMELY SALE OF THE COMPANY'S SHUTTERED JOHN MORRELL PACKAGED MEAT OPERATIONS BANANA PRICES REMAIN WEAK AND PARTS OF JOHN MORRELL ARE STILL ON THE BLOCK A CHIQUITA SPOKESWOMAN DECLINED TO COMMENT NATIONWIDE HEALTH PROPERTIES INC NEWPORT BEACH CALIF MOODY'S INVESTORS SERVICE INC UPGRADED ITS RATINGS ON THE UNSECURED MEDIUMTERM NOTES AND SENIOR SUBORDINATED CONVERTIBLE DEBENTURES OF THIS REAL ESTATE INVESTMENT TRUST CITING SIGNIFICANT FINANCIAL IMPROVEMENT THE UPGRADE AFFECTED 100 MILLION IN UNISSUED NOTES AND 19 MILLION IN SENIOR SUBORDINATED CONVERTIBLE DEBENTURES MOODY'S UPGRADED NATIONWIDE'S MEDIUMTERM NOTE RATING TO BAA2 FROM BA1 AND THE COMPANY'S SENIOR SUBORDINATED CONVERTIBLE DEBENTURE RATING TO BA1 FROM BA3 THE RATINGS AGENCY SAID THE TRUST HAD MADE PROGRESS IN DIVERSIFYING ITS TENANT EXPOSURE AND THAT NATIONWIDE'S LARGE NURSINGHOME PORTFOLIO IS EXPECTED TO BENEFIT FROM FAVORABLE DEMOGRAPHIC TRENDS AND A LOWER COST STRUCTURE THAN OTHER HEALTHCARE PROVIDERS 9307300082 930730 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT PANAMSAT L P/PANAMSAT CAPITAL CORP A TWOPART 6352 MILLION DEBT ISSUE WAS PRICED BY UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 175 MILLION OF SENIOR SECURED NOTES DUE AUG 1 2000 WAS PRICED AT PAR TO YIELD 975 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE SECOND TRANCHE 460206 MILLION FACE AMOUNT OF SENIOR SUBORDINATED DISCOUNT NOTES DUE AUG 1 2003 WAS PRICED AT 57583 TO YIELD 11375 THE DEBT DOES NOT PAY A COUPON FOR THE FIRST FIVE YEARS THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P ADT OPERATIONS INC A 600 MILLION TWOPART ISSUE OF DEBT WAS PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION OF SENIOR NOTES DUE AUG 1 2000 WAS PRICED AT PAR TO YIELD 825 THE NONCALLABLE NOTES WERE RATED BA3 BY MOODY'S AND DOUBLEB BY S&P THE SECOND TRANCHE 350 MILLION OF SENIOR SUBORDINATED NOTES DUE AUG 1 2003 WAS PRICED AT PAR TO YIELD 925 THE NOTES NOT CALLABLE FOR FIVE YEARS WERE RATED SINGLEB2 BY MOODY'S AND DOUBLEBMINUS BY S&P ASSOCIATES CORP OF NORTH AMERICA 300 MILLION OF NOTES DUE AUG 1 1996 WAS PRICED WITH A 4 3/4 COUPON AT 99892 TO YIELD 479 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 040 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED A1 BY MOODY'S INC AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ASSOCIATES CORP IS A SUBSIDIARY OF FORD MOTOR CO CHASE MANHATTAN CORP 100 MILLION OF FLOATINGRATE NOTES DUE AUG 1 2003 WAS PRICED THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT PAR AND WILL FLOAT QUARTERLY AT THE THREEMONTH LONDON INTERBANK OFFERED RATE LIBOR THREEMONTH LIBOR IS CURRENTLY 33125 THE NOTES HAVE A FLOOR OF 45 AND NO CAP RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE NOTES WILL PAY INTEREST QUARTERLY ILLINOIS POWER CO 100 MILLION OF NEW MORTGAGE BONDS DUE AUG 1 2003 WAS PRICED WITH A 6 1/2 COUPON AT 99383 TO YIELD 6585 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARS & CO CYGNE DESIGNS INC AN INITIAL OFFERING OF 24 MILLION COMMON SHARES WAS PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER GREENFIELD INDUSTRIES INC AN INITIAL OFFERING OF 6250000 COMMON SHARES WAS PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO OF THE TOTAL THE COMPANY SAID IT EXPECTS THAT FIVE MILLION OF THE SHARES WILL BE SOLD IN THE US AND CANADA THROUGH MORGAN STANLEY FIRST BOSTON CORP AND WERTHEIM SCHRODER & CO QUADRUM FINANCIAL SERVICES INC AN INITIAL OFFERING OF 31 MILLION AMERICAN DEPOSITARY SHARES WAS PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO STARSIGHT TELECAST INC AN INITIAL OFFERING OF 27 MILLION COMMON SHARES WAS PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS & UPHAM ST LOUIS COUNTY MO 1268 MILLION OF GENERAL OBLIGATION PUBLIC IMPROVEMENT AND REFUNDING BOND ISSUE WAS APPARENTLY WON BY GROUPS LED BY GOLDMAN SACHS & CO AND BEAR STEARNS & CO THE OFFERING INCLUDES 472 MILLION SERIES 1993A BONDS AND 796 MILLION SERIES 1993B BONDS GOLDMAN SACHS IS BELIEVED TO HAVE WON THE SERIES 1993A BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 50345 YIELDS RANGE FROM 265 IN 1994 TO 520 IN 2006 THE SERIES 1993B BONDS WERE APPARENTLY WON BY A BEAR STEARNS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 55148 YIELDS FOR THOSE BONDS WERE SET AT 530 IN 2007 TO APPROXIMATELY 552 IN 2013 ALL OF THE BONDS HAVE BEEN RATED DOUBLEA1 BY MOODY'S INVESTORS SERVICE INC NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY 100 MILLION PUBLIC SCHOOLS SMALL PROJECT LOAN PROGRAM BONDS WERE APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 50397 YIELDS RANGE FROM 350 IN 1995 TO 540 IN 201113 MOODY'S HAS RATED THE ISSUE DOUBLEA1 AND S&P HAS ASSIGNED A TRIPLEA RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 818 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SURITIES WAS OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993 147 IS BACKED BY 818 MILLION PRINCIPAL ONLY PORTION AND 805 MILLION OF THE INTEREST ONLY PORTION OF STRIPPED MORTGAGE BACKED SECURITIES SMBS 238 WHICH IS IN TURN BACKED BY THE AGENCY'S 30YEAR 7 MBS CERTIFICATES STUDENT LOAN MARKETING ASSOCIATION 150 MILLION OF NOTES DUE DEC 12 1995 WAS PRICED THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL FLOAT QUARTERLY FOR THE FIRST YEAR 15 BASIS POINTS OVER THREEMONTH TREASURY BILLS THEREAFTER THE DEBT WILL HAVE A 5 FIXED INTEREST RATE THE NOTES HAVE A ONETIME CALL ON AUG 12 1994 SCHWEIZERISCHE BANKGESELLSCHAFT DEUTSCHLAND AG SBG SWITZERLAND PARENT 2593 MILLION OF ZEROCOUPON EUROBONDS VIA UBS LTD ISSUED IN 27 SERIES WITH SERIES 1 TO 26 AT 6125000 AND SERIES 27 AT 100 MILLION SECURED ON INTEREST AND PRINCIPAL REPAYMENT OF 100 MILLION OF BRITISH TELECOMMUNICATIONS PLC BT 1225 BONDS DUE 2006 REPAYMENT OF SBG BONDS LIMITED BY AMOUNT SBG RECEIVES ON INVESTMENT IN BT BONDS SERIES 1 MATURES SEPT 30 1993 WITH EACH SUBSEQUENT SERIES MATURING EVERY SIX MONTHS UNTIL MARCH 31 2006 FEES UNDISCLOSED WITAN INVESTMENT CO UK 563 MILLION OF 6 1/4 EXCHANGEABLE EUROBONDS DUE SEPT 1 2008 AT ISSUE PRICE PAR VIA BARING BROTHERS & CO LTD EXCHANGEABLE FROM SEPT 30 1993 INTO ORDINARY SHARES OF ELECTRIC & GENERAL INVESTMENT CO PLC AT EXCHANGE PRICE 19948 PENCE LOWLAND INVESTMENT CO PLC AT 43482 PENCE AND GREENFRIAR INVESTMENT CO PLC AT 29662 PENCE A PREMIUM OF 1564 OVER WEDNESDAY'S MIDMARKET SHARE PRICES CALLABLE BEFORE OCT 20 1998 AT PAR IF 80 OF BONDS CONVERTED THEREAFTER BONDS CALLABLE ANY TIME AT PAR FEES 2 1/2 POINTS INTEREST PAYABLE SEMIANNUALLY SKOPBANK FINLAND 100 MILLION OF FLOATINGRATE EURONOTES DUE AUG 24 1996 AT ISSUE AND REOFFER PRICE 9970 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST FLOATS AT 50 BASIS POINTS ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE GUARANTOR REPUBLIC OF FINLAND FEES 1/4 POINT INTEREST PAYABLE SEMIANNUALLY BANCO DO ESTADA DO PARANA SA BRAZIL 50 MILLION OF 10 EUROBONDS DUE FEB 27 1996 AT ISSUE AND REOFFER PRICE PAR VIA PARIBAS CAPITAL MARKETS LTD BONDS YIELD 10 SEMIANNUAL A MARGIN OF 570 BASIS POINTS OVER INTERPOLATED US TREASURY YIELD CURVE FEES 1 1/4 INTEREST PAYABLE SEMIANNUALLY DE NATIONALE INVESTERINGSBANK NV NETHERLANDS 100 MILLION SWISS FRANCS OF 4 3/8 PUBLIC BONDS DUE AUG 31 1998 PRICED AT 102 VIA BANCO DEL GOTTARDO AND ABN AMRO BANK FEES 1 5/8 9307300081 930730 HOUSE PANEL APPROVES BILL ON INSURANCEINDUSTRY BIAS WASHINGTON A HOUSE BANKING SUBCOMMITTEE APPROVED LEGISLATION THAT WOULD SPOTLIGHT INSURANCEINDUSTRY BIAS AGAINST LOWINCOME MINORITY PEOPLE BY REQUIRING DISCLOSURE OF VARIOUS POLICYWRITING DATA THE VOTE WAS 1912 WITH DEMOCRATS BACKING THE MEASURE AND REPUBLICANS OPPOSING IT THE BILL FOUND MORE FAVOR WITH CONSUMER GROUPS AND LESS WITH INSURANCE COMPANIES THAN A COMPETING MEASURE APPROVED WEDNESDAY BY A HOUSE ENERGY AND COMMERCE SUBCOMMITTEE THE HOUSE RULES COMMITTEE MAY EVENTUALLY HAVE TO DECIDE WHICH BILL WILL BE CONSIDERED ON THE FLOOR OR WHETHER A COMPROMISE MEASURE WILL BE DRAWN UP THE BANKING SUBCOMMITTEE'S BILL WOULD REQUIRE INSURERS TO PROVIDE THE GOVERNMENT WITH DATA BY CENSUS TRACT IN THE 150 LARGEST CITIES ON SUCH MATTERS AS POLICIES ISSUED PREMIUMS NONRENEWALS CLAIMS AND THE RACE OF POLICYHOLDERS AND AGENTS DATA ON LOSSES WOULD ALSO BE REQUIRED BUT WOULD BE KEPT CONFIDENTIAL AS TRADE SECRETS THE DISCLOSURES WOULD APPLY TO HOMEOWNER AUTO AND SMALLBUSINESS INSURANCE THE COMMERCE PANEL'S BILL COVERS ONLY THE 25 LARGEST CITIES AND REQUIRES DATA BY ZIP CODE WHICH IS LESS SPECIFIC THAN BY CENSUS TRACT IT OMITS LOSS AND RACE DATA AND DOESN'T INCLUDE SMALLBUSINESS POLICIES 9307300080 930730 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 64 DAYS 311 65 TO 89 DAYS 314 90 TO 119 DAYS 316 120 TO 158 DAYS 330 159 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 294 SIX MONTHS 318 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 311 ONE MONTH 315 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 305 60 DAYS 308 90 DAYS 310 120 DAYS 321 150 DAYS 324 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 9/16 3 7/16 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 9/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 696 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 698 60 DAYS 705 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 692 60 DAYS 702 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 9307300079 930730 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON GAINS SOME IN PUBLIC ESTEEM JUST WHEN HE NEEDS IT MOST WITH THE CLIMACTIC BATTLE OVER HIS ECONOMIC PACKAGE LOOMING A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS AMERICANS NOW EVENLY DIVIDED AT 45 OVER WHETHER HE IS DOING A GOOD JOB LAST MONTH THEY DISAPPROVED 50 TO 41 BY 54 TO 38 AMERICANS SEE HIM AS A DIFFERENT KIND OF DEMOCRAT NOT JUST A TAXANDSPENDER THAT GAP HAD BEEN ONLY FIVE PERCENTAGE POINTS LAST MONTH CLINTON ALSO SHOWS IMPROVEMENT ON HIS HANDLING OF THE ECONOMY AND FOREIGN POLICY HIS UPTICK REVERSES A SLIDE DATING BACK TO MARCH BUT THE POLLSTERS WHO CONDUCTED THE JOURNAL/NBC SURVEY DEMOCRAT PETER HART AND REPUBLICAN BOB TEETER OBSERVE THE QUESTION IS WHETHER WE'RE SEEING A TURNAROUND OR A ONEMONTH IMPROVEMENT IN A HYPOTHETICAL THREEWAY 1996 MATCHUP CLINTON GETS 35 PEROT GETS 28 AND DOLE GETS 27 CONSUMERS GROW GLOOMIER ABOUT THE ECONOMY'S PROSPECTS BY A 2TO1 MARGIN AMERICANS THINK THE COUNTRY IS HEADED IN THE WRONG DIRECTION ONLY 20 EXPECT THE ECONOMY TO IMPROVE IN THE NEXT YEAR DOWN FROM 50 IN JANUARY BUT IF CLINTON'S PLAN PASSES 27 EXPECT THINGS TO GET BETTER ADMINISTRATION ECONOMISTS ARE HEARTENED THAT CAR SALES REMAIN STRONG BUT WORRY THAT HOUSING ISN'T GETTING ENOUGH OF A LIFT FROM LOW INTEREST RATES ABOUT HALF THOSE POLLED SAY CLINTON AND CONGRESS OUGHT TO MAKE JOBS AND THE ECONOMY THEIR TOP PRIORITY DEALING WITH THE DEFICIT AND HEALTHCARE REFORM ARE TIED FOR DISTANT SECOND WHILE A 37 PLURALITY STILL SAYS UNEMPLOYMENT IS THE NATION'S TOP ECONOMIC ISSUE THAT IS DOWN FROM 44 EARLIER THIS YEAR CONGRESS FEARS A NEW FIRESTORM OF PUBLIC SCORN THE JOURNAL/NBC POLL FINDS 67 OF AMERICANS THINK CONGRESS STILL HAS NOT GOTTEN THE MESSAGE OF REFORM AND ENDING GRIDLOCK 60 DISAPPROVE OF THE JOB CONGRESS IS DOING AND ONLY 23 HAVE A POSITIVE VIEW OF THE INSTITUTION JUST THREE IN 10 FEEL THEIR OWN REPRESENTATIVE DESERVES TO BE REELECTED DEMOCRATIC LAWMAKERS SEEKING TO AVOID A 1994 REPLAY OF THE ETHICS CONTROVERSIES THAT POISONED LAST YEAR'S CAMPAIGNS WANT THE ROSTENKOWSKIPOST OFFICE SITUATION RESOLVED BY YEAR END THE MOST DANGEROUS THING THAT COULD HAPPEN IS IF THE CLOUD REMAINS SAYS REP CARDIN DEMOCRATIC LEADERS HOPE TO EASE THE ANGER THROUGH ACTION ON DEFICITREDUCTION AND HEALTH CARE BUT GOP STRATEGIST LINDA DIVALL WARNS THAT SKEPTICISM ABOUT LAWMAKERS' INTEGRITY ERODES CONFIDENCE IN LEGISLATIVE SOLUTIONS THE US PRESSES TO FINISH LABOR AND ENVIRONMENT DEALS WITH MEXICO AND CANADA NEXT WEEK FOR THE FREETRADE AGREEMENT BUT OFFICIALS HOPE TO KEEP THE NEWS UNDER WRAPS FOR FEAR OF COMPLICATING THE FIGHT TO PASS THE BUDGET IN THE POLL 31 OF AMERICANS FAVOR NAFTA WHILE 29 OPPOSE ITBUT BY 63 TO 24 THEY THINK IT WILL COST THE US JOBS CLINTON'S COMPROMISE ON GAYS IN THE MILITARY IS FAVORED BY 56 TO 40 ACCORDING TO THE POLL BUT 56 ALSO BELIEVE HE HANDLED THE ISSUE POORLY NUNN'S MOVE TO WRITE THE COMPROMISE INTO LAW PLEASES THE JOINT CHIEFS WHO THINK THAT WILL MAKE IT MORE DEFENSIBLE IN THE COURTS PEROT'S STANDING DIPS AS HE LAUNCHES HIS ASSAULT ON THE DEFICITREDUCTION PACKAGE HE IS VIEWED POSITIVELY BY ONLY 37 TO 34 THE GAP WAS 10 POINTS LAST MONTH AND BY 46 TO 39 PEOPLE THINK HE IS CRITICIZING CLINTON FOR POLITICAL REASONS BESIDES THE EXPECTED ISSUES IN THE FIRST SET OF TALKS ON THE USJAPAN TRADE FRAMEWORK AUTOS AND GOVERNMENT PROCUREMENT THE AGENDA WILL ALSO INCLUDE INSURANCE WHICH ADMINISTRATION OFFICIALS ATTRIBUTE TO HEAVY LOBBYING BY AMERICAN INTERNATIONAL GROUP CHAIRMAN MAURICE GREENBERG MOST AMERICANS WHO KNOW OF THE FRAMEWORK THINK IT IS GOOD FOR THE US BUT 60 KNOW NOTHING ABOUT IT IRAQ AND TERRORISM PREOCCUPY POLICY PLANNERS THE POLL SHOWS THAT 57 BELIEVE CLINTON HAS HANDLED IRAQ JUST ABOUT RIGHT A US OFFICIAL PREDICTS NO BREAKTHROUGHS SOON IN UN NEGOTIATIONS OVER WHEN IRAQ CAN SELL ITS OIL TO RAISE CASH THE US ALSO INSISTS THAT THE TRADE EMBARGO WON'T BE LIFTED UNTIL BAGHDAD MEETS A LONG LIST OF PROBABLY UNACCEPTABLE CONDITIONS INCLUDING PAYING WAR REPARATIONS AND ENDING ITS REPRESSION OF KURDISH AND SHIITE MINORITIES DESPITE FBI NOMINEE FREEH'S WARNINGS ABOUT DOMESTIC TERRORISM YESTERDAY TERRORISM EXPERTS WHO WERE BADLY SHAKEN BY THE WORLD TRADE CENTER BOMBING NOW ARE CONFIDENT THAT THEY CAN TAKE ON MOST THREATS INSIDE THE US BUT THE POLL FINDS 91 OF AMERICANS ARE AT LEAST SOME WHAT CONCERNED ABOUT TERRORISM IN THE US AND 53 ARE CONCERNED ABOUT TERRORISM NEAR THEIR OWN HOME OR JOB MINOR MEMOS ALTHOUGH HILLARY RODHAM CLINTON'S POPULARITY OUTSTRIPS HER HUSBAND'S AND OTHER NATIONAL POLITICIANS BY 2 TO 1 AMERICANS SAY THEY STILL WOULD RATHER SPEND AN HOUR IN THE WHITE HOUSE WITH THE PRESIDENT THAN WITH HER BY A WIDE PLURALITY AMERICANS THINK JURASSIC PARK DIRECTOR STEVEN SPIELBERG HAS BEEN THE BIGGEST SUCCESS OF THE SUMMER 9307300078 930730 SENATE APPROVES BILL TO CLOSELY REGULATE GOVERNMENT BONDS WASHINGTON THE SENATE BY VOICE VOTE APPROVED A BILL HEIGHTENING FEDERAL REGULATION OF THE MASSIVE GOVERNMENT SECURITIES MARKET UNDER THE MEASURE GOVERNMENT SECURITIES SALES PRACTICES WOULD BE REGULATED FOR THE FIRST TIME IT ALSO WOULD EXPLICITLY BAN THE USE OF FALSE AND MISLEADING STATEMENTS IN CONNECTION WITH OFFERINGS OF GOVERNMENT SECURITIES AND WOULD REQUIRE THREE FEDERAL AGENCIES TO MONITOR AND EVALUATE PRIVATE EFFORTS TO BROADEN THE DISSEMINATION OF GOVERNMENTBOND PRICE DATA THE BILL ALSO WOULD PERMANENTLY EXTEND THE TREASURY'S RULEMAKING AUTHORITY OVER THE MARKET THAT AUTHORITY CONFERRED BY THE 1986 GOVERNMENT SECURITIES ACT LAPSED IN 1991 PREVENTING THE TREASURY FROM ISSUING RULES ON CAPITAL STANDARDS RISK ASSESSMENT AND CUSTOMER PROTECTION THE LEGISLATION APPROVED BY THE SENATE IS CONSIDERABLY NARROWER THAN THE VERSION CLEARED RECENTLY BY A HOUSE SUBCOMMITTEE KEY LAWMAKERS IN THE HOUSE CONTEND THAT STRONGER STEPS ARE WARRANTED FOLLOWING THE SALOMON BROTHERS INC BOND SCANDAL SEN CHRISTOPHER DODD D CONN CHAIRMAN OF THE SENATE SECURITIES SUBCOMMITTEE SAID HE IS CONFIDENT A COMPROMISE GOVERNMENT SECURITIES BILL WOULD BE ENACTED THIS YEAR THE HOUSE VERSION INCLUDES PROVISIONS TO REQUIRE MARKET PARTICIPANTS TO REPORT LARGE POSITIONS IN TREASURY SECURITIES AND TO KEEP RECORDS IN A FORM THAT CAN BE TRANSMITTED ELECTRONICALLY TO THE SECURITIES AND EXCHANGE COMMISSION UPON REQUEST THE HOUSE BILL IS THE OBJECT OF INTENSE NEGOTIATIONS BETWEEN ITS AUTHORS AND TREASURY OFFICIALS IN A BID TO FASHION A COMPROMISE ACCEPTABLE TO THE TREASURY 9307300077 930730 TRUMP PLANS NEW CASINO NEW YORK DONALD TRUMP SAID HE PLANS TO BUILD A 45 MILLION ENTERTAINMENT AND CASINO COMPLEX IN GULFPORT MISS WITH A RENOVATED AQUARIUM AN ARTIFICIAL RAIN FOREST A THEATER AND 35000 SQUARE FEET OF CASINO SPACE TRUMP OCEAN CLUB CASINO INC SAID IT SIGNED A NONBINDING LETTER OF INTENT WITH JACKPOT ENTERPRISES INC AND PLAYERS INTERNATIONAL INC TO BUY WATERFRONT OPTION RIGHTS IN GULFPORT JACKPOT SAID THAT IF A FORMAL AGREEMENT IS ENTERED BY AUG 15 MR TRUMP WILL BE REQUIRED TO PAY JACKPOT AND PLAYERS EACH 2 MILLION BY JAN 11 1994 AND 250000 ANNUALLY THEREAFTER FOR SIX YEARS MR TRUMP SAID THE CASINO COULD OPEN IN SIX TO EIGHT MONTHS 9307300076 930730 WHAT'S NEWS BUSINESS AND FINANCE GERMANY DECLINED TO CUT ITS DISCOUNT RATE PUSHING EUROPE'S 14YEAROLD EXCHANGE RATE MECHANISM THE HEART OF EUROPEAN MONETARY UNITY TO THE BRINK OF COLLAPSE THE BUNDESBANK'S DECISION TRIGGERED SHARP DROPS IN SOME EUROPEAN CURRENCIES AND STRONG RALLIES IN EUROPEAN STOCKS AND BONDS ON SPECULATION THE CHAOS WOULD RESULT IN LOWER INTEREST RATES THE TURMOIL BOOSTED THE DOLLAR DEMOCRATIC LEADERS CONCEDED THEY CAN'T PASS A BUDGET BILL WITH A FUELTAX RISE GREATER THAN THE 43CENT INCREASE APPROVED BY THE SENATE ALL BUT ENSURING THAT CONGRESS WON'T HIT CLINTON'S TARGET FOR 500 BILLION IN DEFICIT CUTS THE ECONOMY GREW AT A SLUGGISH 16 ANNUAL RATE IN THE SECOND QUARTER LOWER THAN THE 25 THAT ANALYSTS HAD EXPECTED BUT CONSUMER SPENDING ROSE 38 IN THE QUARTER COMPARED WITH JUST 08 IN THE FIRST QUARTER BONDS RALLIED ON WEAK ECONOMIC NEWS SENDING INTEREST RATES TUMBLING THE DOW JONES INDUSTRIALS ROSE 1397 POINTS TO 356742 THE PRICE OF THE TREASURY BENCHMARK 30YEAR ISSUE GAINED NEARLY 1 1/4 POINTS ITS YIELD WAS 657 IBM IS OVERHAULING THE STRUCTURE OF ITS BOARD IN THE WAKE OF HARSH CRITICISM OF DIRECTORS WHO PRESIDED OVER ITS SLIDE INTO CRISIS IBM IS CREATING A COMMITTEE OF OUTSIDE DIRECTORS LED BY RETIRED JOHNSON & JOHNSON CHAIRMAN JAMES BURKE THAT WILL NOMINATE DIRECTORS AND HANDLE SHAREHOLDER PROPOSALS STOCK MUTUAL FUNDS TOOK IN 92 BILLION IN JUNE DEFYING THE SUMMER DOLDRUMS THAT USUALLY AFFLICT FUND SALES THE FIGURE WAS ABOVE MAY'S INFLOW AND NEARLY DOUBLE JUNE 1992'S LEVEL GENERAL MOTORS POSTED STRONGERTHANEXPECTED SECONDQUARTER NET REFLECTING COST CUTTING IN NORTH AMERICA AND HIGHER EARNINGS OVERSEAS THE 8891 MILLION PROFIT WHICH ALSO REFLECTS NONAUTOMOTIVE GAINS COMPARES WITH A YEAREARLIER 703 MILLION LOSS GM LEVELED NEW ACCUSATIONS AT VW PURCHASING CHIEF LOPEZ ASSERTING THAT HE ATTENDED A STRATEGIC MEETING AND REQUESTED INTERNAL GM DOCUMENTS EVEN AFTER HE HAD SIGNED ON AT VW APPLE COMPUTER PLANS TO INTRODUCE ON MONDAY ITS MUCHDELAYED NEWTON MESSAGEPAD A PORTABLE COMPUTER THAT CAN RECOGNIZE HANDWRITING BETTER THAN ANY OTHER AT A 699 BASE PRICE UAL RECORDED A PROFIT BECOMING THE THIRD OF THE THREE BIGGEST US AIRLINES TO DO SO FOR THE LATEST QUARTER BUT THE UNITED AIR PARENT SAID IT STILL NEEDS SUBSTANTIAL COST CUTS TO BE A VIABLE COMPETITOR FOR THE LONG TERM MEDCO CONTAINMENT'S CHAIRMAN MARTIN WYGOD STANDS TO COLLECT A 60 MILLION FEE FOR NEGOTIATING THE 6 BILLION SALE OF MEDCO TO MERCK MCI COMMUNICATIONS JOINED WITH MORE THAN 150 COMPANIES TO SUPPLY SERVICES TO THE EMERGING MARKET FOR WIRELESS PERSONAL COMMUNICATIONS FOUNDATION HEALTH'S STOCK PLUMMETED 1125 OR 35 TO 2075 AFTER AETNA GOT A 35 BILLION GOVERNMENT CONTRACT THAT FOUNDATION HAD HELD QUALMED ANOTHER FINALIST FOR THE CONTRACT TO PROVIDE HEALTH CARE SAW ITS STOCK FALL 1125 OR 73 TO 1425 ITT'S PROFIT MORE THAN DOUBLED IN THE SECOND QUARTER AS SEVEN OF ITS EIGHT BUSINESS UNITS POSTED SIGNIFICANTLY IMPROVED OPERATING RESULTS OPERATING EARNINGS AT ITT'S INSURANCE UNIT SOARED TO 187 MILLION THE COMPANY'S STOCK ROSE 1375 TO 8875 THE WHITE HOUSE ENDORSED LEGISLATION DESIGNED TO LIMIT INSURERS' EXEMPTIONS FROM FEDERAL ANTITRUST LAWS THE BILL WOULD ALLOW FEDERAL OFFICIALS TO CHALLENGE INSURERS AS THEY DO OTHER INDUSTRIES IF THEY REDUCE COMPETITION OR RAISE PRICES UNFAIRLY IT ALSO LETS THE GOVERNMENT ATTACK PRICEFIXING A CANADIAN TRADE TRIBUNAL UPHELD A CANADIAN GOVERNMENT RULING THAT IMPOSED PUNITIVE DUTIES ON SOME IMPORTS OF LOWPRICED COLDROLLED STEEL PRODUCTS FROM THE US AND FOUR OTHER NATIONS BONDS LEHMAN BROTHERS TREASURY INDEX 536616 UP 4681 COMMODITIES OIL 1812 A BARREL OFF 11 CENTS DOW JONES FUTURES INDEX 13040 OFF 002 SPOT INDEX 12416 UNCHANGED DOLLAR 10645 YEN UP 065 17410 MARKS UP 00235 9307300075 930730 HARSCO PACT WITH STELCO HARRISBURG PA HARSCO CORP SAID IT SIGNED A 10YEAR CONTRACT WITH STELCO INC A STEELMAKER IN HAMILTON ONTARIO CANADA TO RECYCLE MATERIALS GENERATED AS BYPRODUCTS OF STEEL PRODUCTION AT STELCO'S LAKE ERIE WORKS HARSCO SAID IT EXPECTS REVENUE FROM THE CONTRACT TO BE ABOUT 70 MILLION OVER 10 YEARS THE COMPANY SAID ITS HECKETT TECHNOLOGY SERVICES CANADA UNIT WHICH PROVIDES STEEL MILL SERVICES WILL BUILD A FACILITY AT THE LAKE ERIE WORKS TO RECOVER AND RECYCLE THE BYPRODUCTS INTO FEEDSTOCK FOR THE STEELMAKING PROCESS HARSCO SAID THE FACILITY IS EXPECTED TO BEGIN OPERATION DURING THE LAST QUARTER OF 1993 HARSCO SAID ITS CAPITAL INVESTMENT FOR THE FACILITY WILL BE ABOUT 3 MILLION 9307300074 930730 IBM OVERHAULING ITS BOARD WILL CREATE GOVERNANCE' PANEL OF OUTSIDE DIRECTORS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP IS OVERHAULING THE STRUCTURE OF ITS BOARD IN THE WAKE OF HARSH CRITICISM OF THE DIRECTORS WHO PRESIDED OVER ITS SLIDE INTO CRISIS IN AN UNUSUAL MOVE FOR CORPORATE BOARDS THE COMPUTER GIANT IS CREATING A NEW COMMITTEE OF OUTSIDE DIRECTORS TO FOCUS ON CORPORATE GOVERNANCE THE COMMITTEE TO BE LED BY RETIRED JOHNSON & JOHNSON CHAIRMAN JAMES BURKE WILL NOMINATE NEW DIRECTORS HANDLE PROPOSALS FROM IBM SHAREHOLDERS AND OVERSEE THE BOARD'S POWER STRUCTURE IBM ALSO IS REDEFINING ITS EXECUTIVE COMMITTEE ONCE THE NERVE CENTER OF ITS BOARDROOM POWER AND STRATEGY GIVING IT A MORE LIMITED ROLE IN HANDLING ROUTINE ISSUES BETWEEN BOARD MEETINGS IN A LETTER TO SHAREHOLDER GROUPS IBM'S SECRETARY JOHN HICKEY CALLED THE NEW GOVERNANCE COMMITTEE A RECOGNITION THAT MANY CORPORATE GOVERNANCE MATTERS REPRESENT SIGNIFICANT POLICY ISSUES OF INTENSE SHAREHOLDER AND PUBLIC INTEREST THE FINANCIAL DECLINE OF CORPORATE GIANTS SUCH AS IBM AND GENERAL MOTORS CORP HAS SET OFF A WAVE OF PRESSURE ON BIG COMPANIES TO YIELD MORE POWER TO OUTSIDE DIRECTORS AT IBM'S ANNUAL MEETING IN APRIL SEVERAL HOLDERS ANGRILY ACCUSED THE BOARD OF PLAYING TOO PASSIVE A ROLE AS IBM'S PROFITS AND STOCK PRICE PLUNGED THE BOARD SERVED AS CHEERLEADERS NOT AS WATCHDOGS COMPLAINED ONE HOLDER WILLIAM STEINER THIS BOARD IS TOO INSULATED AND TOO OLD AN IBM SPOKESMAN CONFIRMED THE CHANGES WHICH WEREN'T PUBLICLY ANNOUNCED AND SAID THEY WERE INITIATED BY THE COMPANY'S NEW CHAIRMAN LOUIS V GERSTNER JR MR GERSTNER WANTED TO MAKE THE BOARD MORE EFFECTIVE AND RESPONSIVE THE SPOKESMAN SAID SHAREHOLDER GROUPS PRAISED THE IBM MOVES THEY'VE PUT THEMSELVES ON THE LEADING EDGE OF CORPORATE GOVERNANCE SAID RALPH WHITWORTH PRESIDENT OF THE WASHINGTON ADVOCACY GROUP UNITED SHAREHOLDERS ASSOCIATION A YEAR AGO IT WAS AN OLDFASHIONED BOARD WITH MOST OF THE POWER CONSOLIDATED AROUND THE INSIDERS FEW OTHER COMPANIES HAVE GIVEN THEIR BOARDS SUCH AN EXPLICIT FOCUS ON CORPORATE GOVERNANCE IN JANUARY ANOTHER GIANT IN CRISIS EASTMAN KODAK CO TOOK A SLIGHTLY DIFFERENT TACK SETTING UP A CORPORATE DIRECTIONS COMMITTEE OF OUTSIDE DIRECTORS TO OVERSEE ITS BASIC STRATEGY IBM'S CHANGES ARE THE LATEST OF SEVERAL CONCESSIONS IT HAS MADE TO SHAREHOLDER GROUPS IN THE LAST YEAR AS ITS STOCK PRICE HAS SPUN DOWN LOSING FULLY HALF ITS VALUE IN JANUARY IBM CREATED A NEW COMMITTEE OF OUTSIDE DIRECTORS TO HANDLE BOARD NOMINATIONS AND EXECUTIVE COMPENSATION IN THE NEW STRUCTURE THOSE TASKS WILL BE SPLIT BETWEEN THE GOVERNANCE COMMITTEE AND A NEWLY NAMED EXECUTIVE COMPENSATION AND MANAGEMENT RESOURCES COMMITTEE TO BE LED BY CAPITAL CITIES/ABC INC CHAIRMAN THOMAS MURPHY A YEAR AGO IBM HAD 18 DIRECTORS INCLUDING THREE INSIDERS AT ITS NEXT MEETING IN SEPTEMBER IT WILL HAVE 15 DIRECTORS INCLUDING TWO INSIDERS MR GERSTNER AND VICE CHAIRMAN PAUL RIZZO NEVERTHELESS HOLDER GROUPS AREN'T EXPECTING RADICAL CHANGES FROM THE IBM BOARD THE BOARD STILL CONSISTS ALMOST ENTIRELY OF LONGTIME SUPPORTERS OF FORMER CHAIRMAN JOHN AKERS AND HIS MANAGEMENT TEAM WHO LED THE COMPANY DURING ITS SHARP DECLINE WHILE OUTSIDE DIRECTORS HAVE GAINED POWER SO HAS MR GERSTNER WHO WILL CHAIR THE EXECUTIVE COMMITTEE PREVIOUSLY IBM CHECKED THE CHAIRMAN'S POWER BY GIVING HIS PREDECESSOR THAT POWERFUL SEAT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IBM SHARES FELL 125 CENTS TO 43875 9307300073 930730 JAPANESE PAPER FIRMS' MERGER TOKYO A COMPANY TO BE CREATED BY THE MERGER OF LEADING JAPANESE PAPER CONCERNS OJI PAPER CO AND KANZAKI PAPER MANUFACTURING WILL SELL TWO FACTORIES THAT MAKE COATED PAPER IN A BID TO AVOID BREAKING THE ANTIMONOPOLY LAW AN OJI PAPER OFFICIAL SAID NEW OJI PAPER CO TO BE ESTABLISHED OCT 1 WHEN OJI PAPER MERGES WITH KANZAKI WILL SELL PART OF ITS COATED PAPERMAKING FACILITIES IN TOTTORI PREFECTURE AND CORRESPONDING SALES RIGHTS TO CHUETSU PULP & PAPER CO THE ACQUISITION IS TO TAKE EFFECT IN 1996 OR 1997 CHUETSU SAID IN ADDITION OJI PAPER WILL SELL SOME OF ITS HOLDINGS OF CHUETSU'S STOCK TO DISPEL ANY FEARS THAT IT HAS TOO MUCH SWAY OVER CHUETSU'S BUSINESS DEALINGS OJI CURRENTLY HOLDS A 76 SHARE OF CHUETSU'S EQUITY TO RANK AS CHUETSU'S BIGGEST SHAREHOLDER 9307300072 930730 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES COMPANY OFFERS NEW MODELS OF VALUEPOINT COMPUTERS INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED SIX NEW MODELS OF ITS LOWEND VALUEPOINT PERSONAL COMPUTERS AND CUT PRICES ON THE ENTIRE BRAND 5 TO 75 THE NEW MODELS EXTEND THE VALUEPOINT LINE TO A LOWER PRICE RANGE STARTING AT 899 IBM SAID THE NEW MACHINES ARE AIMED AT SCHOOLS AND CUSTOMERS LOOKING FOR LOWCOST NETWORKS RICHARD ZWETCHKENBAUM A RESEARCH MANAGER AT MARKET RESEARCHER INTERNATIONAL DATA CORP SAID THE PRICE CUTS WERE INTENDED IN PART TO PREEMPT A WAVE OF NEW PRODUCTS EXPECTED NEXT WEEK FROM DELL COMPUTER CORP IBM ALSO LAUNCHED A NEW BUSINESS TO SELL PERSONALCOMPUTER MONITORS TO CUSTOMERS OUTSIDE THE COMPANY THE MOVE IS PART OF A BROADER PUSH BY THE ARMONK NY CONCERN TO FIND NEW MARKETS FOR ITS COMPUTER PARTS WHICH IT TRADITIONALLY BUILT EXCLUSIVELY FOR ITS OWN USE IBM INTRODUCED A LINE OF NEW MONITORS AT PRICES RANGING FROM 500 TO 1600 9307300071 930730 SUNRISE MEDICAL INC ACQUISITION TORRANCE CALIF SUNRISE MEDICAL INC SAID IT COMPLETED ITS 71 MILLION ACQUISITION OF DEVILBISS HEALTH CARE INC A SOMERSET PA SUPPLIER OF HOMEUSE RESPIRATORY PRODUCTS THE DEAL INCLUDES 37 MILLION IN CASH AND 34 MILLION IN SUNRISE STOCK SUNRISE WHICH MAKES WHEELCHAIRS AND OTHER MEDICAL AND REHABILITATION EQUIPMENT ALSO ASSUMED 61 MILLION IN DEBT 9307300070 930730 BUSINESS BRIEF CINEPLEX ODEON CORP PROFIT POSTED IN 2ND QUARTER ENDING 4YEAR LOSS STREAK CINEPLEX ODEON CORP NORTH AMERICA'S SECONDLARGEST MOVIE THEATER CHAIN REPORTED ITS FIRST PROFIT IN FOUR YEARS THE CULMINATION OF A RESTRUCTURING PROCESS UNDER WAY SINCE 1990 THE TORONTO COMPANY SAID STRONGER BOXOFFICE REVENUE AND REDUCED EXPENSES HELPED IT REPORT SECONDQUARTER NET INCOME OF 678000 OR ONE CENT A SHARE UP FROM A LOSS OF 76 MILLION OR NINE CENTS A SHARE A YEAR EARLIER REVENUE FOR THE PERIOD INCREASED 2 TO 1333 MILLION FROM 1309 MILLION A YEAR EARLIER WE ARE MOVING FORWARD STEADILY AND MORE QUICKLY THAN MANY WERE PREDICTING JUST A SHORT TIME AGO SAID ALLAN KARP PRESIDENT ONLY TWO WEEKS OF BOXOFFICE RESULTS FROM JURASSIC PARK ARE INCLUDED IN THE QUARTER'S RESULTS CINEPLEX SAYS IT RECEIVED 456 MILLION IN REVENUE AND CONCESSION SALES ON JURASSIC PARK SCREENINGS ALONE IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CINEPLEX CLOSED AT 275 UNCHANGED 9307300069 930730 BUSINESS BRIEF HARSCO CORP FIRM SEES LOWER EARNINGS BEFORE GAINS CHANGES IN '93 HARSCO CORP SAID IT EXPECTS ITS 1993 NET INCOME BEFORE GAINS AND ACCOUNTING CHANGES TO BE LOWER THAN IN 1992 WHEN IT EARNED 892 MILLION OR 343 A SHARE BEFORE GAINS THE DIVERSIFIED INDUSTRIAL MANUFACTURER ATTRIBUTED THE ANTICIPATED DECLINE TO WEAKER DEFENSE EARNINGS WHICH IT EXPECTS TO BE AROUND 60 MILLION AS IT PHASES OUT ITS FIVETON TRUCK BUSINESS THAT FIGURE COMPARES WITH 83 MILLION LAST YEAR IN THE FIRST SIX MONTHS OF THIS YEAR DEFENSE SALES WERE 2793 MILLION COMPARED WITH 3748 MILLION A YEAR EARLIER FOR THE SECOND QUARTER THE COMPANY REPORTED A 19 INCREASE IN EARNINGS TO 223 MILLION OR 89 CENTS A SHARE FROM 188 MILLION OR 72 CENTS A SHARE A YEAR EARLIER FOR 1994 AND BEYOND CHAIRMAN MALCOLM GMBILL SAID THE COMPANY EXPECTS STEADY GROWTH IN NET INCOME FROM 1993'S LEVEL BEFORE GAINS AND ACCOUNTING CHANGES HE CAUTIONED HOWEVER THAT A KEY FACTOR WILL BE THE RATE OF RECOVERY FROM THE WORLDWIDE RECESSION 9307300068 930730 WHAT'S NEWS WORLDWIDE THE US SOUGHT TO ARRANGE A CEASEFIRE IN LEBANON AS FIGHTING ESCALATED SECRETARY OF STATE CHRISTOPHER PUSHED FOR AN END TO THE FIGHTING CONFERRING WITH SYRIAN LEBANESE AND ISRAELI OFFICIALS ISRAEL DECLARED IT WAS READY TO HALT ITS FIVEDAY ASSAULT ON SOUTHERN LEBANON IF THE US OR OTHERS COULD GUARANTEE THAT HEZBOLLAH GUERRILLAS WOULD STOP ATTACKING ITS NORTHERN TOWNS THE ISRAELIS WERE FIRING AN ESTIMATED NINE SHELLS A MINUTE AT LEBANESE TARGETS ABOUT 100 ISRAELI TANKS AND ARMORED PERSONNEL CARRIERS MOVED INTO LEBANON THE ISRAELI BOMBARDMENT HAS TARGETED SUSPECTED GUERRILLA BASES AND 80 DESERTED SHIITE MUSLIM VILLAGES LEBANESE POLICE SAID AT LEAST 100 PEOPLE HAD BEEN KILLED AND MORE THAN 440 WOUNDED SEVEN JAPANESE OPPOSITION PARTIES CHOSE MORIHIRO HOSOKAWA 55 A FORMER REGIONAL GOVERNOR TO HEAD THEIR COALITION WHEN PARLIAMENT CONVENES NEXT MONTH THE GROUP IS EXPECTED TO HAVE ENOUGH VOTES TO NAME A NEW GOVERNMENT AS THE ALLIANCE'S LEADER HOSOKAWA WOULD BECOME PRIME MINISTER ISRAEL'S SUPREME COURT RULED THAT JOHN DEMJANJUK IS NOT IVAN THE TERRIBLE A CONCENTRATION CAMP GUARD WHO TORTURED JEWS AS HE FORCED THEM INTO THE GAS OVENS AT THE TREBLINKA CAMP IN POLAND DEMJANJUK 73 A RETIRED OHIO AUTO WORKER IS INELIGIBLE TO RETURN TO THE US THE JUSTICE DEPARTMENT SAID MEDIATORS IN GENEVA PRESENTED A PEACE PLAN THAT GENERALLY RECOGNIZED SERBCROAT DEMANDS FOR THE ETHNIC DIVISION OF BOSNIA WHILE TRYING TO SATISFY THE MUSLIMLED GOVERNMENT'S DESIRE FOR A CLOSE FEDERATION PEOPLE CLOSE TO THE TALKS SAID THE MEDIATORS HAVE BEEN PRESSING THE MUSLIMS TO ACCEPT SOME FORM OF ETHNIC PARTITION HOUSE AND SENATE NEGOTIATORS AGREED TO AIM TOWARD A 60 DIRECT GOVERNMENT LENDING PROGRAM FOR STUDENT LOANS AFTER FIVE YEARS REPLACING MANY BANKS AND THRIFTS THAT NOW MAKE THE LOANS A HOUSE PLAN WOULD HAVE MOVED ENTIRELY TO DIRECT LOANS A SENATE PLAN CALLED FOR 50 DIRECT LENDING AFTER FOUR YEARS TWO NAVY JETS FIRED AT SUSPECTED IRAQI MISSILE SITES AFTER BEING TARGETED BY RADAR IN SEPARATE INCIDENTS THE PENTAGON SAID THE TWO US PLANES PATROLLING THE SOUTHERN NOFLY ZONE IN IRAQ RETURNED SAFELY TO AN AIRCRAFT CARRIER IN THE PERSIAN GULF US OFFICIALS SAID BAGHDAD OFFICIALS DENIED THAT ANY MISSILES HAD BEEN FIRED AT IRAQI SITES SECTIONS OF A RAILROAD BRIDGE COLLAPSED IN GLASGOW MO AS THE STRONG CURRENTS OF THE SWOLLEN MISSOURI RIVER KNOCKED OUT TWO TRESTLES STATE OFFICIALS SAID IN ST LOUIS WORKERS DRILLED HOLES IN ONE WEAKENED SECTION OF THE CITY'S LEVEE SO THAT IT COULD BE REINFORCED WITH CEMENT THE MISSISSIPPI RIVER IS EXPECTED TO CREST THERE NEXT WEEK THE FDA LAUNCHED AN ATTACK ON WORTHLESS DIETARY SUPPLEMENTS RELEASING A REPORT THAT CONCLUDES HUNDREDS OF COMPOUNDS ARE PROMOTED WITH UNPROVEN HEALTH CLAIMS THE AGENCY'S COMMISSIONER KESSLER TOLD A HOUSE HEARING THAT THE SAFETY OF MANY SUPPLEMENTS CAN'T BE ASSUMED AND THAT SOME ARE LIFETHREATENING LIBERAL DEMOCRATS CLAIMED VICTORY IN A SPECIAL BRITISH ELECTION IN CHRISTCHURCH A TOWN IN SOUTHERN ENGLAND THAT HAD BEEN A CONSERVATIVE PARTY STRONGHOLD SINCE 1909 YESTERDAY'S VOTE WAS SEEN AS A STRONG PROTEST AGAINST THE TORY GOVERNMENT OF PRIME MINISTER MAJOR WHOSE POPULARITY HAS PLUMMETED IN THE PAST YEAR SUPREME COURT NOMINEE GINSBURG WON UNANIMOUS APPROVAL FROM THE SENATE JUDICIARY COMMITTEE CLEARING THE WAY FOR A VOTE BY THE FULL SENATE AS SOON AS NEXT WEEK LAWMAKERS FROM BOTH PARTIES PREDICTED SHE WILL BE CONFIRMED EASILY NEW EXERCISE GUIDELINES WERE ISSUED BY THE GOVERNMENT THAT SAY 30 MINUTES OF MODERATE INTERMITTENT EXERCISE DURING A DAY LIKE A BRISK WALK OR STAIR CLIMBING CAN DO ALMOST AS MUCH GOOD AS ONE HEARTPOUNDING NONSTOP WORKOUT THE GUIDELINES ARE A CHANGE FROM PRIOR RECOMMENDATIONS FAVORING SUSTAINED AEROBIC ACTIVITY A JUDGE IN NEW YORK DISMISSED HALF OF THE EIGHT CRIMINAL CHARGES IN THE BCCIRELATED CASE AGAINST WASHINGTON ATTORNEY ROBERT ALTMAN INCLUDING A BRIBERY CHARGE THAT WAS CENTRAL TO THE PROSECUTORS' CASE THE STATE JUDGE'S RULING CAME FOUR MONTHS AFTER THE START OF THE MUCHHERALDED BANKFRAUD TRIAL 9307300067 930730 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN FIGHTING TO RESCUE ITS AMBITIOUS HIGHSPEED RAIL PROJECT TAIWAN PLANS TO ALLOW PRIVATE COMPANIES A GREATER SHARE IN THE 15 BILLION ENTERPRISE AS MUCH AS 60 OF THE PROJECT WILL BE OPEN TO PRIVATE ENTERPRISE COMPARED WITH THE 45 INITIALLY PLANNED THE 205MILE LINK FROM THE SOUTHERN PORT OF KAOHSIUNG TO TAIPEI THE CAPITAL IS THE CENTERPIECE OF A SIXYEAR 300 BILLION PLAN TO UPGRADE TAIWAN'S INFRASTRUCTURE THE PROJECT WAS DEALT A SETBACK TWO WEEKS AGO WHEN PARLIAMENT REJECTED A 35 BILLION FUNDING REQUEST FOR THE FIRST STAGE OF THE RAIL LINK AS A DRAIN ON STATE FUNDS CONSTRUCTION WAS TO HAVE STARTED IN 1990 BUT WAS DELAYED BY DISPUTES WITH LANDOWNERS AND LAWMAKERS THE RAILROAD'S CORE SYSTEM STATIONS AND MAINTENANCE FACILITIES WILL BE BUILT PRIVATELY AFTER THE DESIGN IS COMPLETE AND THE LAND IS ACQUIRED AND A FUND WILL BE SET UP TO HELP THE PROJECT CLEAR GOVERNMENT RESTRICTIONS ON LOANS AND LAND ACQUISITION COLOMBIA SUSPENDED PETROLEUM EXPORTS FOR AS LONG AS THREE DAYS FOLLOWING THE LATEST REBEL ATTACK ON A 500MILE PIPELINE IT WAS THE 20TH ATTACK THIS YEAR ON THE PIPELINE BY NATIONAL LIBERATION ARMY REBELS WHO WANT THE GOVERNMENT TO NATIONALIZE THE OIL INDUSTRY AND EXPEL FOREIGN INVESTORS THE BLASTS USUALLY DISRUPT PUMPING BUT RARELY AFFECT EXPORTS BECAUSE THE STATEOWNED OIL COMPANY ECOPETROL STORES LARGE QUANTITIES OF CRUDE OIL ON THE CARIBBEAN COAST COLOMBIA EXPORTS ABOUT 200000 BARRELS A DAY THE ATTACKS HAVE COST THE ECONOMY ABOUT 800 MILLION THE EUROPEAN COMMUNITY COMMISSION WITHDREW 150 LEGISLATIVE PROPOSALS IT CONSIDERS OUTDATED OR OVERTAKEN BY NEW RULES AMONG THE PROPOSALS WERE AGREEMENTS REACHED WITH YUGOSLAVIA WHEN IT WAS STILL ONE COUNTRY A 1990 BAN ON OIL IMPORTS FROM IRAQ SUPERSEDED BY COMPREHENSIVE SANCTIONS AND CERTAIN POLLUTION AND ENERGY CONSERVATION RULES THE CLEANOUT IS SEPARATE FROM A REVIEW OF EC LEGISLATION LAUNCHED LAST YEAR AIMED AT GIVING CITIZENS MORE POWER RECOMMENDATIONS FROM THAT REVIEW ARE DUE BY DECEMBER VIOLENCE IN NORTHERN IRELAND HASN'T SIGNIFICANTLY HURT TRAVEL TO THE BRITISH PROVINCE WHICH EXPECTS TO SET ANOTHER TOURISM RECORD IN 1993 LAST YEAR 125 MILLION PEOPLE VISITED NORTHERN IRELAND 6 MORE THAN IN 1991 TO TAKE ADVANTAGE OF THE GOLF COURSES FISHING LAKES AND COUNTRYSIDE THAT HAVE BEEN UNTOUCHED BY THE ATTACKS MORE THAN 3000 PEOPLE HAVE BEEN KILLED SINCE 1969 IN THE IRISH REPUBLICAN ARMY'S GUERRILLA FIGHT TO OUST BRITAIN FROM NORTHERN IRELAND THE IRA HAS RAVAGED SIX TOWNS WITH A STRING OF CAR BOMB ATTACKS THIS YEAR AT LEAST ONE MILLION RUSSIANS MOST OF THEM WOMEN ARE OFFICIALLY LISTED AS UNEMPLOYED BUT THAT FIGURE MAY ONLY GIVE PART OF THE JOB PICTURE IN RUSSIA WHICH HAS A WORK FORCE OF ABOUT 70 MILLION PEOPLE WHILE THE NUMBER DEFIES PREDICTIONS THAT MARKET REFORMS COULD COST AS MANY AS 20 MILLION JOBS BY THE END OF THE YEAR IT DOES NOT REFLECT THE THOUSANDS OF WORKERS ON EXTENDED UNPAID LEAVES FROM FACTORIES AND OTHER ENTERPRISES STRUGGLING WITHOUT THE SUPPORT OF THE COMMUNIST COMMAND ECONOMY MANY HUGE STATE ENTERPRISES HAVE YET TO CUT BLOATED WORK FORCES NEW ZEALAND BUSINESSES IN ALL SECTORS GAINED CONFIDENCE JUNE HAVING RECEIVED A WEALTH OF ENCOURAGING NEWS ABOUT THE COUNTRY'S ECONOMIC GROWTH CONTRUCTION TRADE AND INTEREST RATES AN INDEX OF BUSINESS CONFIDENCE COMPILED IN A SURVEY BY NATIONAL BANK OF NEW ZEALAND LTD JUMPED 135 TO 688 IN JULY FROM JUNE CLOSING IN ON THE RECORD OF 747 SET IN MARCH THE IMPROVEMENT IN CONFIDENCE PARTICULARLY STRONG IN THE AGRICULTURAL SECTOR REFLECTS THE ACCELERATION IN ECONOMIC GROWTH TO A 28 ANNUAL RATE A RISE IN BUILDING PERMIT APPROVALS CONTINUED GROWTH IN EXPORTS LOWER WHOLESALE INTEREST RATES AND A NARROWING OF NEW ZEALAND'S OVERSEAS DEBT MEANWHILE INFLATION EXPECTATIONS DROPPED TO THEIR LOWEST LEVEL IN 10 YEARS THE AVERAGE LEVEL OF INFLATION EXPECTED FOR THE NEXT 12 MONTHS WAS 24 DOWN FROM A 25 PROJECTION IN JUNE THE ACTUAL INFLATION RATE TYPICALLY COMES IN BELOW THOSE EXPECTATIONS INFLATION RAN AT 13 IN THE 12 MONTHS ENDED JUNE 30 ITALY APPROVED A RESTRUCTURING OF ITS TELECOMMUNICATIONS SECTOR THAT WOULD INVOLVE INTEGRATING A STATE HOLDING COMPANY'S SATELLITE COMMUNICATIONS UNIT AND LONGDISTANCE TELECOMMUNICATIONS GROUP BRITISH BROADCASTING CORP INSTRUCTED ITS JOURNALISTS TO USE PROPER COURTESY IN INTERVIEWING PUBLIC FIGURES 9307300066 930730 BUSINESS BRIEF CARPENTER TECHNOLOGY CORP FIRM TO PAY 204 MILLION FOR MEXICO'S ACEROS FORTUNA CARPENTER TECHNOLOGY CORP CONTINUING ITS STRATEGY OF INTERNATIONAL EXPANSION AGREED TO ACQUIRE THE EQUITY OF MEXICAN STEEL DISTRIBUTOR ACEROS FORTUNA SA DE CV AND TWO RELATED COMPANIES FOR 204 MILLION THE 30YEAROLD COMPANY IS THE LARGEST DISTRIBUTOR OF SPECIALTY STEEL LONG PRODUCTS THOSE IN BAR ROD WIRE OR STRIP FORMS IN MEXICO SALES IN 1992 TOTALED 31 MILLION THERE ARE 400 EMPLOYEES CARPENTER WILL PAY CASH FOR 100 OF THE STOCK OF FORTUNA AND THE RELATED COMPANIES AND ASSUME ABOUT 2 MILLION IN DEBT CARPENTER A READING PA STEEL CONCERN EXPECTS THE ACQUISITION TO INCREASE ITS EARNINGS IN FISCAL 1994 9307300065 930730 TECHNOLOGY BRIEF MICROSOFT CORP FISCAL FIRSTPERIOD REVENUE NOT EXPECTED TO HIT RECORD MICROSOFT CORP REDMOND WASH SAID IT DOESN'T EXPECT REVENUE IN ITS FIRST QUARTER ENDING SEPT 30 TO MATCH THE RECORD 104 BILLION IN REVENUE POSTED IN THE FOURTH QUARTER MICHAEL BROWN MICROSOFT'S TREASURER ALSO TOLD ANALYSTS THAT THE SOFTWARE CONCERN'S REVENUE GROWTH FOR FISCAL 1994 ISN'T LIKELY TO MATCH THE 27 GROWTH OF THE FOURTH QUARTER HE ALSO SAID REVENUE FROM NEW PRODUCTS WILL MAKE UP ABOUT 45 TO 50 OF MICROSOFT'S REVENUE IN FISCAL 1994 AN INCREASE FROM FISCAL 1993 WE'RE INCREASINGLY DEPENDENT ON THE PRODUCT CYCLE MR BROWN SAID STEVE BALLMER MICROSOFT'S EXECUTIVE VICE PRESIDENT ALSO TOLD ANALYSTS THAT THE SOFTWARE GIANT EXPECTS CONTINUED PRICING PRESSURE IN 1994 PARTICULARLY IN EUROPE HE INDICATED THAT MICROSOFT WOULD SLUG IT OUT WITH RIVALS ON PRICE IF NEED BE WE'RE NOT WILLING TO LOSE MARKET SHARE HE SAID THAT WILL GUIDE OUR PRICING ACTIONS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MICROSOFT SHARES CLOSED AT 79 UP 75 CENTS 9307300064 930730 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC SECONDQUARTER NET INCOME ROSE 15 TO 4816 MILLION AMERICAN INTERNATIONAL GROUP INC POSTED A 15 INCREASE IN SECONDQUARTER NET INCOME WITH ALL OF ITS OPERATING GROUPS REPORTING STRONGER RESULTS AIG THE US'S LARGEST INVESTOROWNED INSURANCE COMPANY EARNED 4816 MILLION OR 227 A SHARE UP FROM 4196 MILLION OR 198 A SHARE LAST YEAR THE STRONGEST GROWTH CAME IN THE COMPANY'S FEEBASED BUSINESSES WHICH REPORTED A 365 INCREASE IN OPERATING INCOME THE COMPANY'S PROPERTY AND CASUALTY BUSINESS LIFE INSURANCE BUSINESS AND FINANCIAL SERVICES BUSINESS POSTED STRONG GAINS REVENUE ROSE 11 TO 502 BILLION FROM 453 BILLION AIG'S STOCK WILL SPLIT TODAY ON A 3FOR2 BASIS ADJUSTED FOR THE STOCK SPLIT AIG EARNED 152 A SHARE COMPARED WITH 132 A SHARE IN THE YEARAGO PERIOD 9307300063 930729 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9307300062 930730 BUSINESS BRIEF MGM GRAND INC HOTELCASINO IS SET TO OPEN MONTHS EARLY STOCK SOARS MGM GRAND INC LAS VEGAS SAID IT NOW PLANS TO OPEN ITS NEW HOTELCASINO AND THEME PARK DEC 18 THREE AND A HALF MONTHS AHEAD OF THE ORIGINAL SCHEDULE THE EARLY OPENING WILL ALLOW MGM GRAND TO TAKE ADVANTAGE OF THE YEAREND HOLIDAY THE COMPANY SAID A SPOKESMAN FOR MGM GRAND WHICH IS CONTROLLED BY INVESTOR KIRK KERKORIAN ATTRIBUTED THE EARLY OPENING DATE TO EFFECTIVE CONSTRUCTION AND TO CITY AND COUNTY GOVERNMENT COOPERATION MGM GRAND HAD ANNOUNCED THAT IT WAS PUSHING THE OPENING DATE UP TO NEXT FEB 18 FROM AN ORIGINAL MARCH 31 TARGET CONSTRUCTION ON THE 1 BILLION PROJECT BEGAN IN OCTOBER 1991 NEWS OF THE LATEST REVISIONS BOOSTED MGM GRAND SHARES BY 82 TO 32875 UP 250 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9307300061 930730 BUSINESS BRIEF GOVERNMENT TECHNOLOGY SERVICES HEWLETTPACKARD PRODUCTS ARE ADDED TO SALES PROGRAM GOVERNMENT TECHNOLOGY SERVICES INC SAID IT WILL CARRY SEVERAL NEW HEWLETTPACKARD CO PRODUCTS FOR SALE TO THE FEDERAL GOVERNMENT UNDER A SCHEDULE B/C CONTRACT WHICH ALLOWS GTSI TO SELL MICROCOMPUTER PRODUCTS TO THE GOVERNMENT GTSI WILL OFFER HEWLETTPACKARD'S OMNIBOOK SUPER PORTABLE LASERJET AND INKJET PRINTERS SCANNERS AND ACCESSORIES GTSI ALSO SAID IN CHANTILLY VA THAT IT REACHED A RESELLER AGREEMENT WITH EPSON AMERICA INC MAKING IT THE EXCLUSIVE RESELLER TO THE GOVERNMENT OF EPSON'S ACTIONDESK 4000 DESKTOP LINE AND POWERSPAN TOWER FOR NETWORK SERVERS 9307300060 930730 BUSINESS BRIEF PET INC NET LOSS OF 1733 MILLION POSTED FOR FOURTH QUARTER PET INC REPORTED A 1733 MILLION LOSS FOR THE FISCAL FOURTH QUARTER REFLECTING ITS RESTRUCTURING BUT SAID EARNINGS FROM CONTINUING OPERATIONS IMPROVED THE ST LOUIS FOOD MAKER'S LOSS EQUAL TO 162 A SHARE CAME ON SALES OF 3571 MILLION AND INCLUDED CHARGES COVERING DIVESTITURE OF SEVERAL NONCORE BUSINESSES AND DEBT REFINANCING A YEAR EARLIER PET EARNED 185 MILLION OR 17 CENTS A SHARE ON SALES OF 3498 MILLION EARNINGS FROM CONTINUING OPERATIONS INCREASED 20 TO 252 MILLION FROM 21 MILLION REFLECTING LOWER PRODUCT COSTS AND FAVORABLE PRICING MILES L MARSH CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE RESTRUCTURING WAS PROGRESSING ON PLAN AND REFINANCING COMPLETED UNDER FAVORABLE TERMS WHILE PROGRESSO SOUPS AND OLD EL PASO MEXICAN PRODUCTS POSTED STRONG SALES THOSE OF VAN DE KAMP'S FROZEN FISH SLUMPED HE SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PET GAINED 75 CENTS OR 5 TO 15625 9307300059 930730 BUSINESS BRIEF CHIPS & TECHNOLOGIES INC NARROWER 94 MILLION LOSS POSTED FOR FISCAL 4TH QUARTER CHIPS & TECHNOLOGIES INC POSTED A FISCAL FOURTHQUARTER LOSS OF 94 MILLION OR 59 CENTS A SHARE COMPARED WITH A LOSS OF 153 MILLION OR 1 A SHARE A YEAR EARLIER THE SAN JOSE CALIF CHIP MAKER SAID IT WAS TAKING A 62 MILLION RESTRUCTURING CHARGE TO DISCONTINUE SOME PRODUCT AREAS INCLUDING ITS NETWORKING BUSINESS EXCLUDING ONETIME CHARGES THE LOSS WOULD HAVE BEEN 32 MILLION OR 20 CENTS A SHARE COMPARED WITH 61 MILLION OR 40 CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDED JUNE 30 REVENUE DROPPED 35 TO 215 MILLION FROM 331 MILLION FIERCE COMPETITION CONTINUED TO DRIVE DOWN THE COMPANY'S CHIP SETS SEGMENT OF MICROPROCESSORS FOR PERSONAL COMPUTERS BUT IT SAID IT HAS REACHED THE BOTTOM AND HOPES ITS INCREASING FOCUS ON GRAPHIC CHIPS WILL REVITALIZE BUSINESS THE COMPANY ALSO SAID CHIEF OPERATING OFFICER JAMES F STAFFORD HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING GORDON CAMPBELL WHO REMAINS CHAIRMAN 9307300058 930730 MARKETING BRIEF TIME WARNER INC UNIT'S ANNUAL SALES TO FALL AS RESULT OF 1992 CABLE ACT TIME WARNER INC'S TIME WARNER CABLE UNIT SAID IT EXPECTS A REDUCTION OF 90 MILLION TO 100 MILLION IN ANNUAL SALES AS A RESULT OF THE RECENTLY PASSED 1992 CABLE ACT THE LAW MANDATES CUTS IN BASIC CABLE TELEVISION RATES FOR ALL CABLE COMPANIES AND TAKES EFFECT SEPT 1 TIME WARNER IN NEW YORK SAID IT EXPECTS THE REDUCTION IN REVENUE TO BE OFFSET BY INCREASED REVENUES IN OTHER AREAS SUCH AS OPTIONAL SERVICE ADVERTISING SALES AND SUBSCRIBER GROWTH KEN GOLDMAN AN ANALYST AT BEAR STEARNS IN NEW YORK SAID THE COMPANY'S SALES ESTIMATE WAS SOMEWHAT MILDER THAN HIS PROJECTION OF ABOUT 150 MILLION I VIEW THIS AS A RELATIVELY BENIGN OUTCOME FOR TIME WARNER HE SAID MR GOLDMAN SAID THE COMPANY PROBABLY WILL HAVE THE CHANCE TO OFFSET THE LOSSES WITH GAINS IN OTHER AREAS A SPOKESMAN FOR THE COMPANY SAID 100 MILLION IS A SIGNIFICANT NUMBER NO MATTER HOW YOU LOOK AT IT TIME WARNER CABLE HAD 21 BILLION IN REVENUE LAST YEAR 9307300057 930730 MARKETING BRIEF NOTED REUTERS REUTERS HOLDINGS PLC WILL PROVIDE NEWS HEADLINES TO SUBSCRIBERS OF SKYTEL CORP'S WIRELESS TEXT MESSAGING SERVICE IN THE US TWICE A DAY FOR FREE SKYTEL IS THE MAIN SUBSIDIARY OF MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP 9307300056 930730 BUSINESS BRIEF T ROWE PRICE ASSOCIATES INC CONCERN REPORTS 37 RISE IN NET FOR SECOND QUARTER MUTUAL FUND MANAGERS T ROWE PRICE ASSOCIATES INC POSTED A 37 RISE IN SECONDQUARTER EARNINGS FUELED BY FEES EARNED ON RECORD ASSETS MANAGED NET INCOME FOR THE QUARTER WAS 115 MILLION OR 76 CENTS A SHARE COMPARED WITH THE YEAREARLIER NET OF 84 MILLION OR 56 CENTS A SHARE THE COMPANY POSTED REVENUE OF 727 MILLION A 23 INCREASE FROM THE YEAREARLIER 59 MILLION THE BALTIMORE COMPANY'S TOTAL ASSETS MANAGED FOR THE SIX MONTHS INCREASED BY 816 BILLION OR 21 TO 4659 BILLION FROM THE YEAREARLIER 3843 BILLION ADMINISTRATIVE REVENUE GREW 23 TO 19 MILLION FROM 155 MILLION MAINLY ON THE STRENGTH OF FUND TRANSFER AGENT ACTIVITIES AND THE DEFINED CONTRIBUTION RECORDKEEPING SERVICE THE COMPANY SAID IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY T ROWE PRICE SHARES CLOSED AT 54 UP 4 9307300055 930730 BUSINESS BRIEF GROUPE BULL COMPUTER CONCERN'S DEFICIT WIDENED DURING FIRST HALF GROUPE BULL FRANCE'S STATECONTROLLED COMPUTER CONCERN POSTED A FIRSTHALF NET LOSS OF 198 BILLION FRANCS 339 MILLION ADDING ON TO THE 47 BILLIONFRANC LOSS ALREADY RECORDED FOR 1992 THE 1993 FIRSTHALF LOSS IS WIDER THAN THE 169 BILLIONFRANC LOSS REGISTERED DURING THE CORRESPONDING YEAREARLIER PERIOD BULL SAID ITS FIRSTHALF REVENUE FELL 94 TO 125 BILLION FRANCS FROM 138 BILLION BULL BLAMED THE LOSS ON A PARTICULARLY DIFFICULT ECONOMIC ENVIRONMENT AND A GENERAL ACCELERATION IN THE DECLINE OF PRICES MOST PARTICULARLY IN MINICOMPUTERS 9307300054 930730 BUSINESS BRIEF ALLEGHANY CORP FIRM AGREES TO ACQUIRE BULK OF UNDERWRITERS REINSURANCE ALLEGHANY CORP SIGNED AN AGREEMENT TO PURCHASE THE BULK OF UNDERWRITERS REINSURANCE CO FROM A CONSORTIUM OF OWNERS FOR ABOUT 201 MILLION THROUGH VARIOUS SUBSIDIARIES ALLEGHANY BASED IN NEW YORK IS ENGAGED IN TITLE INSURANCE INVESTMENT MANAGEMENT BANKING AND INDUSTRIAL MINERALS ALLEGHANY ALSO PLANS TO INVEST ADDITIONAL CAPITAL IN UNDERWRITERS REINSURANCE TO BRING ITS STATUTORY SURPLUS TO AT LEAST 250 MILLION BY YEAR END UP FROM 1854 MILLION AT MARCH 31 UNDERWRITERS REINSURANCE WHICH PROVIDES REINSURANCE TO PROPERTY AND CASUALTY INSURERS IS OWNED BY CONTINENTAL CORP GOLDMAN SACHS & CO AND CERTAIN AFFILIATED INVESTMENT PARTNERSHIPS THE MANAGEMENT OF UNDERWRITERS WILL RETAIN A 7 STAKE IN THE COMPANY A SPOKESMAN FOR CONTINENTAL SAID IT ANTICIPATES A 25 MILLION TO 30 MILLION PRETAX GAIN ON THE SALE FOR THE QUARTER ENDED MARCH 31 UNDERWRITERS BASED IN WOODLAND HILLS CALIF REPORTED NET INCOME OF 112 MILLION ON REVENUE OF 607 MILLION REINSURERS HAVE SEEN THEIR MARKET VALUES RISE AFTER HURRICANE ANDREW BECAUSE OF EXPECTATIONS THAT INSURANCE RATES WILL INCREASE 9307300053 930730 INTERNATIONAL BRIEF DSM NV NET IN 2ND PERIOD DROPS 96 ECONOMIC CONDITIONS CITED DSM NV SAID ITS SECONDQUARTER NET INCOME PLUNGED MORE THAN 96 TO 4 MILLION GUILDERS 2 MILLION FROM 110 MILLION GUILDERS A YEAR EARLIER THE COMPANY ALSO PROJECTED A LOSS FOR THE THIRD QUARTER THE AMSTERDAM BULK CHEMICAL PRODUCER BLAMED THE POOR RESULTS ON THE CONTINUING ECONOMIC CONTRACTION ONLY A 34 MILLION GUILDER TAX GAIN KEPT THE COMPANY FROM SLIPPING INTO THE RED IN THE SECOND QUARTER SALES FELL JUST 15 TO 209 BILLION GUILDERS IN THE SECOND QUARTER BUT PROFIT MARGINS WERE UNDER PRESSURE OVER THE PAST YEAR THE COMPANY HAS BEEN HURT BY SLACK DEMAND EXCESS PRODUCTION CAPACITY AND CHEAP EASTERN EUROPEAN IMPORTS ALL OF WHICH HAVE DEPRESSED PRICES 9307300052 930730 FIRMS INDIVIDUALS FOUND IN VIOLATION OF BIG BOARD RULES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST TWO FIRMS AND 12 INDIVIDUALS FOR VIOLATIONS OF BIG BOARD RULES AND FEDERAL SECURITIES LAWS W H NEWBOLDS' SONS & CO/HOPPER SOLIDAY & CO PHILADELPHIA A FORMER MEMBER ORGANIZATION NOW KNOWN AS NEWCO INC WAS FINED 20000 ON FINDINGS THAT IT INACCURATELY COMPUTED NET CAPITAL FAILED TO REPORT CERTAIN ACCOUNT DEFICIENCIES AND MADE OPERATIONAL AND OTHER ERRORS THE FIRM NEITHER ADMITTED NOR DENIED THE FINDINGS SPEAR LEEDS & KELLOGG NEW YORK WAS FINED 7500 FOR FAILING TO MAINTAIN MINIMUM CAPITAL REQUIREMENTS FOR OPTIONS SPECIALISTS AND FAILING TO PRESERVE CERTAIN REQUIRED RECORDS THE FIRM NEITHER ADMITTED NOR DENIED GUILT UNLESS OTHERWISE NOTED THE PARTIES HAD NO COMMENT OR COULDN'T BE REACHED JEFFREY WORNSTAFF GREENWICH CONN A FORMER BROKER WAS BARRED SEVEN YEARS FOR MAKING UNAUTHORIZED CUSTOMER TRANSACTIONS AND FAILING TO PAY ARBITRATION AWARDS RAYMOND JOSEPH LEVAN WHITAMORE LAKE MICH A FORMER BROKER WAS BARRED TWO YEARS HE DIDN'T ADMIT OR DENY MAKING UNAUTHORIZED OPTIONS TRADES AND AGREEING TO SHARE CUSTOMER LOSSES MR LEVAN SAID I JUST THOUGHT IT WAS IN MY BEST INTEREST TO GET THE COMPLAINT BEHIND ME AND WE SETTLED AND THAT WAS THAT LESTER WARREN RODGERS JR CHICAGO A FORMER BROKER AFTER A CONTESTED HEARING WAS BARRED ONE YEAR FOR ACCEPTING ORDERS FROM ANOTHER PERSON WITHOUT THE CUSTOMER'S AUTHORIZATION AND CONCEALING FACTS ABOUT A CUSTOMER ACCOUNT FROM HIS EMPLOYER DAVID A GARFINKEL NEW ROCHELLE NY WAS FINED 25000 AND SUSPENDED TWO MONTHS FOR RECOMMENDING UNSUITABLE INVESTMENTS TO CUSTOMERS NEGLIGENTLY PREPARING INACCURATE PORTFOLIO REVIEWS FOR CUSTOMERS AND MAKING TRADES WITHOUT WRITTEN CUSTOMER AUTHORIZATION HE NEITHER ADMITTED NOR DENIED ALLEGATIONS JOSEPH A PART TAMPA FLA WAS BARRED TWO MONTHS FOR ACCEPTING ORDERS FROM PEOPLE OTHER THAN CUSTOMERS WITHOUT WRITTEN CUSTOMER AUTHORIZATION RAYMOND ROBERT CLEMENTS BOSTON WAS SUSPENDED TWO MONTHS FOR MAKING UNSUITABLE AND EXCESSIVE TRADES IN A CUSTOMER'S ACCOUNT HE DIDN'T ADMIT OR DENY FINDINGS GARY MARTIN GLASER MILLBURN NJ A FORMER BROKER WAS SUSPENDED ONE WEEK FOR FAILING TO DISCLOSE THE TRUE BENEFICIAL INTEREST IN AN ACCOUNT ROBERT PHILIP GAUDIOSI OCEANSIDE NY WAS PERMANENTLY BARRED AFTER BEING FOUND GUILTY OF MISAPPROPRIATING APPROXIMATELY 400000 FROM HIS MEMBER FIRM AND OTHER VIOLATIONS CHARLES V TRAMAZZO SILVER SPRINGS MD WAS PERMANENTLY BARRED AFTER NEITHER ADMITTING NOR DENYING HE MISAPPROPRIATED 92832 DIANE ALICE KROLAK CHICAGO A FORMER BROKER WAS PERMANENTLY BARRED SHE NEITHER ADMITTED NOR DENIED MISAPPROPRIATING 60000 FROM HER FIRM MICHAEL JOHN TERRY BROOKLYN NY WAS PERMANENTLY BARRED FOR INVOLVEMENT IN MISAPPROPRIATING 13487 FROM A MEMBER FIRM PENNY SAMANTHA NESLEN CINCINNATI OHIO WAS PERMANENTLY BARRED FOR MISAPPROPRIATING 6205 SHE NEITHER ADMITTED NOR DENIED CHARGES 9307300051 930730 BUSINESS BRIEF HARRISONS & CROSFIELD PLC PRETAX PROFIT CLIMBED 19 IN FIRST HALF OF THIS YEAR HARRISONS & CROSFIELD PLC SAID PRETAX PROFIT ROSE 19 IN THE FIRST HALF OF 1993 CITING COSTCUTTING EFFORTS IN A PATCHY BUSINESS ENVIRONMENT PRETAX EARNINGS ROSE TO 484 MILLION 724 MILLION FROM 406 MILLION WHILE SALES CLIMBED 24 TO 109 BILLION FROM 873 MILLION THE PRETAX PROFIT FIGURE WAS IN LINE WITH MARKET EXPECTATIONS THE UNCHANGED INTERIM DIVIDEND OF 36 PENCE A SHARE ALSO MATCHED FORECASTS HARRISONS CHAIRMAN JOHN MALTBY SAID THE COMPANY'S RECOVERY IN DEMAND DURING THE FIRST HALF HAS BEEN PATCHY AND MUCH OF THIS YEAR'S IMPROVEMENT CAN BE ATTRIBUTED TO THE WORK WE HAVE DONE IN REDUCING OUR COST BASE HE ADDED THAT WE STILL FACE TOUGH MARKET CONDITIONS BUT EVEN SMALL INCREASES IN DEMAND SHOULD HAVE A SIGNIFICANT IMPACT ON PROFITS THE COMPANY'S INTERESTS INCLUDE CHEMICALS FOOD AGRICULTURE TIMBER AND BUILDING SUPPLIES 9307300050 930730 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JULY 23 ACCOUNTED FOR 132 OR AN AVERAGE 327 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 62 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 32 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 371 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 428 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 372 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 20 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES SALOMON BROTHERS AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND FIRST BOSTON DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9307300049 930730 BUSINESS BRIEF SAN MIGUEL CORP NET INCOME INCREASED 2 DURING FIRST HALF OF YEAR SAN MIGUEL CORP MANILA A PHILIPPINES FOOD AND PACKAGING CONGLOMERATE REPORTED A 2 RISE IN CONSOLIDATED NET INCOME FOR THE FIRST HALF OF 1993 TO 16 BILLION PESOS 584 MILLION FROM 156 BILLION PESOS A YEAR EARLIER REVENUE ROSE 1 TO 291 BILLION PESOS FROM 288 BILLION PESOS A YEAR EARLIER SAN MIGUEL SAID IT WAS ABLE TO MAINTAIN ITS PROFIT AND SALES PERFORMANCE IN SPITE OF DECLINES IN THE SALES VOLUMES OF MANY PRODUCTS BROUGHT ABOUT BY THE SEVERE POWER SHORTAGE THAT RESTRAINED ECONOMIC ACTIVITY THE COMPANY CITED IMPROVED OPERATING EFFICIENCY LOWER INTEREST COSTS AND INCREASES IN ITS SHARE OF THE EQUITY EARNINGS OF ITS AFFILIATES INTEREST EXPENSES IN THE PERIOD DECREASED 29 TO 722 MILLION PESOS FROM 102 BILLION PESOS EQUITY IN EARNINGS OF AFFILIATES MEANWHILE GREW 29 TO 367 MILLION PESOS FROM 285 MILLION PESOS SALES VOLUME OF BEER SOFT DRINKS ICE CREAM PORK BEEF SHRIMP FEEDS AND SOME PACKAGING PRODUCTS DECLINED HOWEVER SALES OF CHICKEN LIQUOR PREPARED FOODS CHEESE MARGARINE AND BUTTER ROSE 9307300048 930730 BUSINESS BRIEF MEDICAL CARE AMERICA INC DECLINE IN EARNINGS OF 38 IS POSTED FOR SECOND QUARTER MEDICAL CARE AMERICA INC STILL STRUGGLING WITH ITS INFUSION SERVICES BUSINESS AND FEELING THE EFFECTS OF HEALTHCARE PRICING PRESSURE SAID EARNINGS FELL ALMOST 38 IN THE SECOND QUARTER THE DALLASBASED HEALTHCARE PROVIDER REPORTED NET INCOME FELL TO 131 MILLION OR 36 CENTS A SHARE FROM 21 MILLION OR 56 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 62 IN THE PERIOD TO 1599 MILLION FROM 1506 MILLION THE RESULTS WERE EXPECTED BY ANALYSTS AFTER SEVERAL QUARTERS OF FALLING EARNINGS MEDICAL CARE AMERICA WHICH TRADED AS HIGH AS 58 A SHARE IN SEPTEMBER ROSE 25 CENTS A SHARE TO 1625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING HIGHER DISCOUNTS DEMANDED BY CUSTOMERS WERE FORCING A REENGINEERING OF ITS BUSINESS AS THE COMPANY CONTINUES TO ADJUST TO THE NATIONAL TRENDS TOWARD MANAGED CARE SAID DONALD STEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR STEEN ADDED THAT HE BELIEVED PRICING PRESSURES IN BOTH THE HOME INFUSION MARKET AND THE OUTPATIENT SURGICAL CENTER MARKET WERE STABILIZING 9307300047 930730 BUSINESS BRIEF PRUDENTIAL INSURANCE CO OF AMERICA UNIT TO PAY FAMILY 958000 IN SOURED PARTNERSHIP DEAL PRUDENTIAL SECURITIES INC'S HEADACHES OVER LIMITED PARTNERSHIP DEALS IN THE 1980S CONTINUED WITH AN ARBITRATION DECISION ORDERING THE COMPANY TO PAY 958000 IN DAMAGES TO A FAMILY OF INVESTORS THE FAMILY'S ATTORNEY GUY M BURNS SAID THE AWARD INCLUDED ACTUAL DAMAGES OF 250822 AND PUNITIVE DAMAGES OF 707378 MR BURNS'S CLIENTS GORDON AND GWENDOLYN ROBERTSON A RETIRED COUPLE IN FORT MYERS FLA AND THEIR DAUGHTER JUDITH SITTER OF ERIE PA INVESTED MUCH OF THEIR LIFE SAVINGS IN LIMITED PARTNERSHIPS SOLD BY PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA THEY FILED A CLAIM AGAINST PRUDENTIAL ALLEGING FRAUDULENT AND IMPROPER SALES PRACTICES A SPOKESMAN FOR PRUDENTIAL SECURITIES SAID THE AWARD AND THE EVENTS LEADING UP TO IT ARE BASED ON EVENTS IN THE 1980S AND IN NO WAY REFLECT CURRENT ACTIVITIES THE AWARD FOLLOWS A 29 MILLION SETTLEMENT PRUDENTIAL PAID TO AN INVESTOR ON WEDNESDAY IN A UNRELATED CASE INVOLVING SOURED PARTNERSHIPS PRUDENTIAL IS NEARING A GLOBAL SETTLEMENT WITH REGULATORS INVESTIGATING WHETHER IT IMPROPERLY SOLD LIMITED PARTNERSHIPS IN THE LAST DECADE 9307300046 930730 HEARD ON THE STREET THERE'S GOLD DOWN THAR IN METALS STOCKS SOME BELIEVE IF YOU'RE WILLING TO DIG DEEP BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S A METALS INVESTOR TO DO OLDLINE STEEL STOCKS HAVE TAKEN A BEATING ON THIS WEEK'S UNFAVORABLE TRADE RULING MINIMILLS THAT REMELT STEEL SCRAP AND SPECIALTY STEELMAKERS ARE STRONG BUT THEIR STOCKS LOOK EXPENSIVE RIGHT NOW ALUMINUM AND COPPER SHARES ARE HOBBLED BY A WORLDWIDE GLUT THAT ISN'T EASING BUT DON'T LOSE HOPE SOME INVESTORS AND INDUSTRY ANALYSTS BELIEVE THERE ARE STILL SHINY INVESTMENTS TO BE FOUND IN THE TARNISHED METALS GROUP OFTEN THEY ARE LESSERKNOWN COMPANIES IF YOU WANT TO INVEST IN METALS IT HAS TO BE SOMETHING UNIQUE SAYS DAVID WALLACK WHO FOLLOWS METALS AND MINING FOR T ROWE PRICE ASSOCIATES HE LIKES BRITISH STEEL A LOWCOST LEADER IN EUROPE THAT NEARLY BREAKS EVEN DURING THE INDUSTRY'S WOES HE ALSO FAVORS ALUMINUM COMPANY AMAX INC A TAKEOVER PLAY AND NICKEL MAKER INCO WHICH HE THINKS IS DUE FOR A RECOVERY IT'S IMPOSSIBLE TO BUY THESE STOCKS ONCE THE CYCLE TURNS UP SO WE'RE WILLING TO BE PATIENT HE SAYS STAINLESSSTEEL COMPANIES ARE SURGING THESE DAYS BECAUSE OF CHEAP RAW MATERIALS AND BURGEONING DEMAND FOR THE HIGHTECH METAL BUT INDUSTRY LEADER ALLEGHENY LUDLUM ALREADY HAS RISEN TO A HARDLYCHEAP 23 TIMES REPORTED EARNINGS ANOTHER STAINLESS PLAY ARMCO IS MARRED BY HEAVY EXPOSURE TO MUNDANE CARBON STEEL THEN THERE'S LUKENS PRUDENTIAL SECURITIES METALS ANALYST CLARENCE MORRISON CALLS LUKENS HIS SINGLE BEST IDEA AND PREDICTS THE STOCK NOW AT 46 COULD HIT 60 WITHIN A YEAR LUKENS IS ALREADY UP FROM A 52WEEK LOW OF 31 3/4 AND HAS A P/E RATIO TO MATCH ALLEGHENY'S BUT THE STEELPLATE MARKET IS EXPECTED TO GROW ANOTHER 9 NEXT YEAR AND LUKENS'S ACQUISITION OF WASHINGTON STEEL IS RUNNING SMOOTHLY MOREOVER THE MAKER OF CARBON AND STAINLESS STEEL PLATE RUSHED OUT A STATEMENT FOLLOWING THE TRADE RULING TO SAY THAT ITS MAIN PRODUCT STEEL PLATE WON ALMOST COMPLETE PROTECTION FROM IMPORTS IN THE RULING THE US INTERNATIONAL TRADE COMMISSION VOIDED HALF THE CLAIMS BY DOMESTIC STEELMAKERS THAT IMPORTED STEEL CAUSED THEM FINANCIAL INJURY AMONG NONFERROUS METALS ALUMINUM STOCKS PARTICULARLY ALUMINUM CO OF AMERICA AT 71 3/4 OFF 1 7/8 YESTERDAY LOOK EXPENSIVE TO MANY ANALYSTS WITH SOME 20 WEEKS OF INVENTORY PILED UP AND US PRICES AT THE WHIM OF OVERSEAS MARKETS RECOVERY COULD BE A YEAR OFF COPPER STOCKPILES ARE SLIGHTLY LOWER BUT NEW CAPACITY LOOMS PETER MARCUS PAINEWEBBER'S METALS ANALYST SUGGESTS TAKING A LOOK AT INCO NOW AT 20 3/4 THE CANADIAN NICKEL CONCERN HAS BEEN INCURRING LOSSES BUT HE THINKS NICKEL PRICES COULD JUMP BECAUSE OF HEFTY DEMAND FROM STAINLESSSTEEL PRODUCERS AND NO NEW SUPPLY IS SCHEDULED EACH 1APOUND RISE IN NICKEL PRICES MEANS 225 A SHARE FOR INCO EARNINGS IT DOESN'T TAKE GREAT IMAGINATION TO SEE A 50 STOCK FREEPORTMCMORAN COPPER & GOLD AT 22 3/4 BECKONS TO WAYNE ATWELL MORGAN STANLEY'S METALS ANALYST THE COMPANY'S INDONESIA MINE SITS ON PROBABLY THE MOST ATTRACTIVE ORE BODY IN THE WORLD HE SAYS WITH EXPLORATION LIKELY TO UNEARTH NEW BONANZAS IN GOLD AND COPPER MR ATWELL SAYS THE SHARES COULD HIT THE LOW 30S IN 12 TO 18 MONTHS BIG PRODUCERS SUCH AS USXUS STEEL GROUP AND BETHLEHEM STEEL LEAVE MANY INVESTORS QUEASY MR MARCUS THINKS THEY COULD LOSE AN ADDITIONAL 10 TO 15 HE HAS A SELL OPINION ON ALL STEELMAKERS HE FOLLOWS BUT THE STEEL INDUSTRY IS RECOVERING GRADUALLY EVEN WITHOUT IMPORT PROTECTION YESTERDAY RICHARD ALDRICH LEHMAN BROTHERS ANALYST BEGAN COVERAGE WITH A BUY ON USXUS STEEL THE ONLY STEELMAKER HE FOLLOWS SO FAR ACKNOWLEDGING THE TRADE RULING HURTS IN THE SHORT RUN HE CITED THE COMPANY'S LOW COSTS AND INVESTMENTGRADE CREDIT RATING MICHELLE APPLEBAUM OF SALOMON BROTHERS UPGRADED INLAND STEEL INDUSTRIES TO A BUY SALOMON SAYS 95 OF INLAND'S PRODUCTS ARE IN MARKETS THAT NOW HAVE FINAL TARIFF PROTECTION MINIMILL STOCKS SUCH AS NUCOR ARE ALREADY EXPENSIVE ANALYSTS BELIEVE THEY'VE BEEN HURT BY HIGH PRICES FOR STEEL SCRAP THEIR RAW MATERIAL AND WITH THE TRADE RULINGS EASING THE SUPPLY SQUEEZE MINIMILLS MAY FIND THEIR EXPANSION INTO FLATROLLED STEEL CRAMPED CHARLES BRADFORD OF UBS SECURITIES THINKS HE HAS FOUND A WINNER IN NS GROUP THE KENTUCKY COMPANY OWNS A MINIMILL THAT MAKES STEEL BARS BUT MOST OF ITS BUSINESS IS IN STEEL PIPE FOR OIL DRILLING AND FLUID TRANSMISSION A REBOUNDING AREA IMMUNE TO THIS WEEK'S TRADE DECISIONS OTHERS FAVOR WORTHINGTON INDUSTRIES AS A STEEL PROCESSOR IT'S LESS AFFECTED BY LOW STEEL PRICES IT HAS A GOOD REPUTATION FOR QUALITY A 17 GROSS PROFIT MARGIN AND BACKLOGS AS LONG AS THREE YEARS SAYS PRUDENTIAL'S MR MORRISON HE ENVISIONS THE STOCK AT 38 NEXT YEAR DOUBLE THE PAST YEAR'S LOW YESTERDAY IT ROSE 1 1/4 TO 30 1/4 AFTER SALOMON UPGRADED THE SHARES WEDNESDAY TO BUY FROM HOLD CITING STRONG REVENUE GROWTH 9307300045 930730 BUSINESS BRIEF ARTS DE PROVENCE PIERRE DEUX IS ACQUIRED BY LE CORDON BLEU OWNER ANDRE J COINTREAU OWNER OF LE CORDON BLEU COOKING SCHOOL ACQUIRED ANOTHER VEHICLE FOR MARKETING THE FRENCH LIFESTYLE PIERRE DEUX A PLEASANTVILLE NY CHAIN SPECIALIZING IN FRENCH COUNTRY FURNISHINGS TERMS WEREN'T DISCLOSED MARK J WEINSTEIN FORMERLY MANAGING DIRECTOR OF THE NEW YORK CITY OPERA WAS NAMED PIERRE DEUX'S PRESIDENT AND CHIEF OPERATING OFFICER THE CHAIN WHICH HAS EIGHT BOUTIQUES IN THE US WAS OWNED BY ARTS DE PROVENCE A FRENCH COMPANY THE ACQUISITION PROVIDES US WITH TREMENDOUS OPPORTUNITIES FOR SYNERGY SAID MR COINTREAU POSSIBLE VENTURES BETWEEN LE CORDON BLEU AND PIERRE DEUX INCLUDE HOLDING CHEF DEMONSTRATIONS AND SELLING LE CORDON BLEU'S LINE OF GOURMET FOOD AT THE BOUTIQUES 9307300044 930730 BUSINESS BRIEF NETWORK SYSTEMS CORP SECONDQUARTER NET FELL 37 ON WEAK RESULTS IN EUROPE NETWORK SYSTEMS CORP SAID AN UNEXPECTED DROP IN EUROPEAN BUSINESS DROVE SECONDQUARTER EARNINGS DOWN 37 AND BELOW ANALYSTS' EXPECTATIONS IN THE PERIOD ENDED JUNE 30 THE HIGHPERFORMANCE DATA COMMUNICATIONS SYSTEMS MAKER BASED IN MINNEAPOLIS HAD NET INCOME OF 23 MILLION OR EIGHT CENTS A SHARE COMPARED WITH 37 MILLION OR 12 CENTS A SHARE A YEAR EARLIER REVENUE FELL 9 TO 491 MILLION FROM 541 MILLION A SURVEY OF NINE ANALYSTS BY ZACKS INVESTMENT RESEARCH INC SHOWED AN AVERAGE EXPECTED EARNINGS OF 13 CENTS A SHARE NETWORK SYSTEM ANNOUNCED ITS EARNINGS AFTER THE CLOSE OF NATIONAL OVERTHEMARKET TRADING WHERE ITS SHARES ROSE 25 CENTS TO 7625 PRESIDENT AND CHIEF EXECUTIVE MICHAEL FITZPATRICK ATTRIBUTED THE DROP TO THE FIRM'S INABILITY TO CLOSE ALL OF THE BUSINESS WE HAD EXPECTED IN EUROPE EARLIER THIS WEEK MR FITZPATRICK RESIGNED EFFECTIVE SEPT 1 TO BECOME AN EXECUTIVE VICE PRESIDENT AT THE PACIFIC BELL UNIT OF PACIFIC TELESIS GROUP CHAIRMAN LYLE ALTMAN WILL ASSUME THE CEO'S DUTIES UNTIL A SUCCESSOR IS NAMED 9307300043 930730 BUSINESS BRIEF TRANSAMERICA CORP PROFIT MORE THAN DOUBLED IN 2ND QUARTER TO A RECORD TRANSAMERICA CORP BUOYED BY STRONG GROWTH IN ITS LIFE INSURANCE SEGMENT SAID SECONDQUARTER PROFIT MORE THAN DOUBLED TO A RECORD 1239 MILLION OR 149 A SHARE IN THE YEAREARLIER PERIOD THE SAN FRANCISCO INSURANCE AND FINANCE CONCERN EARNED 603 MILLION OR 69 CENTS A SHARE INCLUDING A 372 MILLION LOSS FROM DISCONTINUED OPERATIONS REVENUE ROSE ABOUT 8 TO 13 BILLION FROM 12 BILLION TRANSAMERICA SAID PROFIT FROM ITS LIFE INSURANCE OPERATIONS SURGED 60 TO 757 MILLION FROM 474 MILLION A YEAR EARLIER IN ADDITION PROFIT AT ITS COMMERCIAL LENDING UNIT MORE THAN DOUBLED TO 91 MILLION FROM 45 MILLION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY TRANSAMERICA ROSE 150 TO 56125 9307300042 930730 FUELTAX RISE MAY BE LIMITED TO 43 CENTS BUDGETBILL CONFEREES DROP PLANS FOR HIGHER LEVY DEFICIT TARGET UNLIKELY BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATIC LEADERS CONCEDED THEY CAN'T PASS A BUDGET BILL WITH A FUELTAX INCREASE GREATER THAN THE 43CENT RISE APPROVED BY THE SENATE ALL BUT ENSURING THAT CONGRESS WON'T HIT PRESIDENT CLINTON'S TARGET FOR 500 BILLION IN DEFICIT REDUCTION THE LEAD BARGAINERS SEEKING A HOUSESENATE COMPROMISE ON MR CLINTON'S DEFICITCUTTING PROGRAM SEN DANIEL MOYNIHAN AND REP DAN ROSTENKOWSKI BY YESTERDAY HAD AGREED ON NEARLY ALL TAX ISSUES BUT A DRAFT COMPROMISE STALLED ON A QUESTION OF TWO PENNIES AS KEY SENATORS OBJECTED TO A PROPOSAL TO JACK THE FUELTAX INCREASE UP TO 65 CENTS A GALLON THE PROBABILITY IS THAT THE SENATE GAS TAX IS WHERE WE'LL END UP MR MOYNIHAN SAID YESTERDAY EVENING REFERRING TO THE 43CENT INCREASE THE CHAMBER PASSED LAST MONTH ASKED HOW CONGRESS COULD THEN ACHIEVE 500 BILLION IN DEFICIT REDUCTION HE REPLIED MAGIC SEN MOYNIHAN THE NEW YORK DEMOCRAT WHO HEADS THE FINANCE COMMITTEE FAILED TO SELL SOME OF HIS FELLOW DEMOCRATIC NEGOTIATORS ON THE GREATER INCREASE DEMOCRATIC SEN MAX BAUCUS OF MONTANA VOWED TO BLOCK ANY SUCH PLAN IN THE HOUSESENATE CONFERENCE COMMITTEE AND STIFF RESISTANCE FROM SENATE DEMOCRATS WHO AREN'T PARTICIPATING IN THE NEGOTIATIONS NOTABLY WISCONSIN SEN HERBERT KOHL SIGNALED THAT A 65CENT INCREASE COULDN'T WIN IN THE FULL SENATE AS THE SENATE BILL PASSED ONLY WITH VICE PRESIDENT AL GORE'S TIEBREAKING VOTE THE PRESIDENT CAN'T AFFORD TO LOSE SUPPORT THE CLINTON ADMINISTRATION AND DEMOCRATIC CONGRESSIONAL LEADERS STILL HOPE TO REACH AN AGREEMENT THAT THE HOUSE AND SENATE COULD PASS NEXT WEEK SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE SAID THE CONFERENCE COMMITTEE WOULD FINISH ITS WORK TODAY BUT YESTERDAY'S IMPASSE EXACERBATED FRUSTRATIONS AMONG HOUSE DEMOCRATS WHO WANT TO PUT THE DEFICITREDUCTION BILL BEHIND THEM AND WHO RESENT WHAT THEY SEE AS SENATORS' OBSTINANCE NO ONE WAS MORE VEXED THAN REP ROSTENKOWSKI WHO GROUSED AT ONE POINT THAT THE SENATE CAN'T PASS ANYTHING I THINK WHAT WE'VE GOT TO DO IS JUST PUT A BILL TOGETHER WHETHER WE KNOW WE CAN PASS IT OR NOT AND LET THE MEMBERSHIP MAKE ITS DECISION THE ILLINOIS DEMOCRAT SAID A FUELTAX INCREASE IS UNPOPULAR IN THE HOUSE AS WELL AS THE SENATE THE OVERWHELMING SHARE OF TAX INCREASES IN THE WHOLE DEFICITREDUCTION PACKAGE WOULD BE PAID BY UPPERINCOME INDIVIDUALS AND BUSINESSES AND HAVE PROVEN RELATIVELY UNCONTROVERSIAL BUT THE 43CENT FUELTAX INCREASE THE SENATE'S ALTERNATIVE TO MR CLINTON'S BROADBASED ENERGY TAX HAS RUN UP AGAINST SOME LAWMAKERS' TRADITIONAL ENMITY TOWARD THAT KIND OF LEVY ESPECIALLY SINCE IT'S THE ONLY TAX IN THE PACKAGE THAT WOULD HIT LOWERCLASS AND MIDDLECLASS WORKERS A 43CENT INCREASE IN THE CURRENT 141CENTAGALLON FEDERAL GASOLINE TAX WOULD RAISE ABOUT 22 BILLION OVER FIVE YEARS THAT IS 50 BILLION LESS THAN MR CLINTON'S INITIAL ENERGY TAX WOULD HAVE RAISED WITHOUT MORE REVENUE THE FINAL DEFICIT PACKAGE ISN'T LIKELY TO MEET THE PRESIDENT'S GOAL OF REDUCING THE DEFICIT BY 500 BILLION OVER FIVE YEARS THAT'S BECAUSE THE BARGAINERS AT THE INSISTENCE OF THE HOUSE AND MR CLINTON ARE HAVING TO ACCEPT MORE SPENDING ON SOCIAL PROGRAMS THAN THE SENATE APPROVED IF THEY DUMP THE GAS TAX THE BILL COULD SAIL ACROSS THE FINISH LINE BUT THEN YOU WOULDN'T GET 500 BILLION IN DEFICIT REDUCTION SAID CALIFORNIA REP RICHARD LEHMAN ONE OF THE 38 DEMOCRATS WHO OPPOSED THE ORIGINAL HOUSE BILL IN MAY MR LEHMAN SAID ELIMINATING THE GAS TAX WOULD MAKE THE FINAL PACKAGE MORE ATTRACTIVE TO HIM THOUGH HE'S UNSURE HE COULD SUPPORT THE PRESIDENT EVEN THEN THE AGREEMENTS ON OTHER TAX ISSUES THAT SEN MOYNIHAN AND REP ROSTENKOWSKI HAD REACHED BY YESTERDAY WERE CONTINGENT ON ACCEPTANCE BY RANKANDFILE DEMOCRATS OF SOME FUELTAX INCREASE A DOCUMENT THAT SEN MOYNIHAN CIRCULATED YESTERDAY CALLED FOR TWO CHANGES THAT WOULD EASE MR CLINTON'S PROPOSALS LIMITING TAX BREAKS FOR LOBBYISTS AND DEDUCTIONS FOR BUSINESS MEALS AND ENTERTAINMENT A NUMBER OF LOBBYING GROUPS HAD OPPOSED THE RESTRICTION AIMED AT THEM AND AS A RESULT THE PROPOSED LIMITATION WOULD BE LESS ONEROUS THAN MR CLINTON AND EITHER THE HOUSE OR THE SENATE BILLS SOUGHT THE DEDUCTIBLE COST OF BUSINESS MEALS AND ENTERTAINMENT NOW 80 WOULD DROP TO 65 INSTEAD OF 50 AS MR CLINTON AND BOTH THE HOUSE AND SENATE BILLS PROPOSED THE PROPOSED CHANGE WOULD BE A LOBBYING VICTORY IN PARTICULAR FOR THE HOTEL AND RESTAURANT EMPLOYEES' UNION BUT THE CHANGE WOULD COME AT A COST THAT COULD MAKE RANKANDFILE LAWMAKERS BALK THE REVISED PROVISION WOULD RAISE NEARLY 6 BILLION LESS OVER FIVE YEARS THAN THE 15 BILLION THAT MR CLINTON'S PROPOSAL WOULD HAVE BROUGHT IN DEMOCRATIC LEADERS SAID THE CHANGE COULD HELP GET THE VOTE OF DEMOCRATIC SEN RICHARD BRYAN OF NEVADA HIS STATE RELIES HEAVILY ON BUSINESS CONVENTIONS BUT THE CHANGE ALSO IS IMPORTANT TO SEN MOYNIHAN WHOSE HOME TOWN OF NEW YORK CITY WOULD HAVE ACCOUNTED FOR ABOUT ONEFIFTH OF THE NEW REVENUES UNDER MR CLINTON'S PROPOSAL AND TO REP ROSTENKOWSKI WHOSE CHICAGO ALSO ENJOYS A LUCRATIVE RESTAURANT AND CONVENTION BUSINESS THE ADMINISTRATION AND DEMOCRATIC NEGOTIATORS REPUBLICANS AREN'T PART OF THE TALKS BECAUSE THEY UNANIMOUSLY OPPOSE THE PACKAGE ALSO ARE SEEKING TO SWEETEN A NUMBER OF BUSINESSTAX INCENTIVES TO LURE VARIOUS SENATORS MR CLINTON IN A NEWS CONFERENCE WITH NEVADA REPORTERS THAT WAS AIMED AT MR BRYAN SAID I HOPE WHEN WE GET THIS FINAL BILL OUT THERE HE'LL SEE IT AS A PROJOBS BILL THAT WILL BE GOOD FOR NEVADA THOUGH THE PRIMARY AIM OF THE LEGISLATION IS DEFICIT REDUCTION TAX BREAKS FOR BUSINESS AND SOME SOCIALPROGRAM INITIATIVES HAVE OCCUPIED MUCH OF THE NEGOTIATORS' ATTENTION THE TWO CHAIRMEN TENTATIVELY AGREED THAT SMALL BUSINESSES AND FARMERS SHOULD BE ABLE TO WRITE OFF MORE OF THEIR EQUIPMENT PURCHASES IN ONE YEAR THEY'RE CONSIDERING A FIGURE BETWEEN 17500 AND 20000 THAT IS UP FROM THE CURRENT 10000 BUT LESS THAN MR CLINTON WANTED AND THE HOUSE AND SENATE BILLS PROPOSED THE CHAIRMEN TENTATIVELY AGREED TO THE SENATE'S PROPOSAL ON RELIEF FOR CORPORATIONS THAT PAY THE ALTERNATIVE MINIMUM TAX PROPOSING SOMETHING LESS GENEROUS THAN THE HOUSE OR MR CLINTON WANTED ALSO PROPOSED FOR INCLUSION IN THE COMPROMISE WAS A HOUSE PROVISION THAT WOULD PROVIDE CAPITALGAINS TAX BREAKS FOR NEW INVESTMENTS IN CERTAIN SMALL BUSINESSES AN ITEM THAT'S IMPORTANT FOR HOLDING THE SUPPORT OF SENS DIANNE FEINSTEIN OF CALIFORNIA AND JOSEPH LIEBERMAN OF CONNECTICUT THE REALESTATE INDUSTRY PARTICULARLY COMMERCIAL DEVELOPERS WOULD MAKE OUT PARTICULARLY WELL IN THE PACKAGE THE MEASURE INCLUDES PROVISIONS THAT WOULD RESTORE DEDUCTIONS FOR REALESTATE ENTREPRENEURS' PASSIVE LOSSES ON RENTAL PROPERTY AND EASE THE TAX LOAD ON DEVELOPERS WITH TROUBLED PROPERTIES WHO HAVE ARRANGED FOR THEIR LENDERS TO FORGIVE SOME DEBT THE NEGOTIATORS ALSO ACHIEVED ABOUT 9 BILLION IN PAPER SAVINGS WITH A WELLWORN BUDGET GIMMICK THEY EXTENDED A NUMBER OF EXISTING POPULAR TAX INCENTIVES JUST THROUGH 1994 INSTEAD OF MAKING THEM PERMANENT AS THE HOUSE AND MR CLINTON PROPOSED THAT UNDERSTATES THE REVENUE LOSS TO THE GOVERNMENT SINCE THE PROVISIONS ARE ALL BUT CERTAIN TO BE EXTENDED AGAIN WHEN THEY EXPIRE AS THEY HAVE BEEN IN THE PAST IN THE TENTATIVE AGREEMENT THE TEMPORARY PROVISIONS WOULD INCLUDE TAX CREDITS FOR BUSINESS RESEARCH AND EXPERIMENTATION AND FOR HIRING DISADVANTAGED WORKERS AND A BREAK FOR EMPLOYERPROVIDED EDUCATIONAL ASSISTANCE THREE PROVISIONS WOULD BE EXTENDED PERMANENTLY INCLUDING INCENTIVES FOR DEVELOPERS OF LOWINCOME HOUSING AND FOR MORTGAGEREVENUE BONDS AND SMALLISSUE BONDS ISSUED FOR SMALL MANUFACTURERS AND FARMERS THE TENTATIVE COMPROMISE WOULD CALL FOR 300 MILLION FOR CHILDHOOD IMMUNIZATIONS DOWN FROM THE HOUSE BILL'S 21 BILLION PROGRAM IT WOULD PROVIDE 3 BILLION FOR TAX BREAKS TO BRING INVESTORS TO DEPRESSED EMPOWERMENT ZONES DOWN FROM THE HOUSE'S 51 BILLION PROPOSAL THAT HAS BEEN A PRIORITY OF THE CONGRESSIONAL BLACK CAUCUS STILL TO BE DECIDED IS THE INCREASE FOR THE TAX CREDIT BENEFITING POOR WORKERS A COSTLY ISSUE THAT'S A PRIORITY FOR MR CLINTON HE PROMOTED IT IN A WHITE HOUSE APPEARANCE YESTERDAY WITH SEVERAL FAMILIES WHO WOULD BENEFIT PEOPLE WHO CAN WORK SHOULD WORK THE PRESIDENT SAID BUT IF THEY DO WORK THEIR FAMILIES AT HOME SHOULDN'T BE POOR WITH THE DEMOCRATIC NEGOTIATORS WRESTLING OVER ENERGY TAXES SOME HOUSE MEMBERS RESUMED TALK OF BOOSTING THE CURRENT 34 CORPORATE INCOMETAX RATE TO 36 RATHER THAN THE 35 THAT BOTH CHAMBERS HAVE ALREADY AGREED TO THE CHANGE WOULD RAISE AN ADDITIONAL 15 BILLION ANNUALLY HOPING TO PRESERVE REVENUE TO FINANCE SOCIAL PROGRAMS REP KWEISI MFUME D MD CHAIRMAN OF THE BLACK CAUCUS CALLED THAT A VERY LIVE OPTION BUT MR ROSTENKOWSKI NOTING THAT MR CLINTON HAD REVELED A DAY EARLIER IN CORPORATE LEADERS' ENDORSEMENT OF HIS PROGRAM RULED IT OUT AS FAR AS I'M CONCERNED IT'S NOT IN PLAY HE SAID MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9307300041 930730 BUSINESS BRIEF MCCAW CELLULAR COMMUNICATIONS SECONDQUARTER NET LOSS NARROWED TO 221 MILLION MCCAW CELLULAR COMMUNICATIONS INC SAID ITS SECONDQUARTER NET LOSS NARROWED TO 221 MILLION OR 11 CENTS A SHARE AS CASH FLOW AND SUBSCRIBERS INCREASED MARKEDLY IN THE YEAREARLIER PERIOD MCCAW IN KIRKLAND WASH HAD A NET LOSS OF 658 MILLION OR 38 CENTS A SHARE REVENUE FOR THE QUARTER ROSE 27 TO 5405 MILLION FOR THE SIX MONTHS MCCAW HAD A NET LOSS OF 361 MILLION OR 18 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 1649 MILLION OR 94 CENTS A SHARE REVENUE FOR THE SIX MONTHS SWELLED TO 102 BILLION FROM 8011 MILLION A YEAR AGO MCCAW CARRIES HEAVY DEBT TAKEN ON TO EXPAND ITS CELLULAR PHONE OPERATIONS ITS CASH FLOW WHICH THE COMPANY MAINTAINS IS THE KEY BAROMETER OF ITS FINANCIAL CONDITION JUMPED 27 TO 2107 MILLION IN THE QUARTER ITS NUMBER OF CELLULAR SUBSCRIBERS GREW TO 25 MILLION UP 31 FROM 19 MILLION A YEAR AGO IN NATIONAL OVERTHECOUNTER TRADING MCCAW CLOSED AT 47625 A SHARE DOWN 1375 9307300040 930730 BUSINESS BRIEF ARTHUR ANDERSEN & CO CONNECTICUT RAISES PENALTIES OVER REALESTATE COMPANY CONNECTICUT REGULATORS STRENGTHENED PENALTIES AGAINST ARTHUR ANDERSEN & CO OVER CHARGES THAT THE NATION'S BIGGEST ACCOUNTING FIRM MISLED INVESTORS IN COLONIAL REALTY CO AND HAD IMPROPER TIES WITH COLONIAL IN MAY ANDERSEN AGREED TO A TWOYEAR BAN ON CONSULTING FOR REALESTATE SYNDICATION WORK IN THE STATE AND TO A ONEYEAR PROHIBITION ON ANY NEW ACCOUNTING CONTRACTS WITH THE STATE OR ITS AGENCIES BY ANDERSEN'S TWO CONNECTICUT OFFICES IT ALSO AGREED TO PAY FINES PENALTIES AND COURT COSTS TO THE STATE OF 35 MILLION YESTERDAY THE STATE BOARD OF ACCOUNTANCY ADDED A TWOMONTH BAN ON REALESTATE FORECASTING FOR ALL BUSINESSES AND A SIMILAR BAN ON ISSUING FORECAST REPORTS FOR ALL SYNDICATIONS THE BOARD ALSO BARRED ANDERSEN'S CONNECTICUT OFFICES FOR 28 DAYS FROM TAKING ANY NEW CLIENTS WHOSE MAIN BUSINESS IS REAL ESTATE AND THE BOARD EXTENDED THE ONEYEAR BAN ON STATE CONTRACTS AND SUBCONTRACTS TO ANDERSEN OFFICES WORLDWIDE ANDERSEN STILL FACES LAWSUITS FROM SOME INVESTORS AND THE BANKRUPTCY TRUSTEE FOR COLONIAL WHICH WAS FORCED TO SEEK BANKRUPTCYLAW PROTECTION IN 1990 9307300039 930730 BUSINESS BRIEF PEOPLES JEWELLERS LTD FOUNDER'S SON DEFEATS PLAN FOR RESTRUCTURING DEBT THE SON OF THE FOUNDER OF PEOPLES JEWELLERS LTD DEFEATED THE COMPANY'S EFFORT TO RESTRUCTURE ITS DEBT PAVING THE WAY FOR A POSSIBLE BANK SEIZURE OF THE 70YEAROLD CANADIAN JEWELRY CHAIN PEOPLES JEWELLERS SAID MARVIN GERSTEIN VOTED THE SHARES UNDER HIS CONTROL AGAINST PEOPLES' RESTRUCTURING PLAN MR GERSTEIN WHO CONTROLS ABOUT A THIRD OF THE SHARES INDICATED EARLIER IN THE COMPANY'S NOTICE CALLING THE MEETING THAT HE WOULD VOTE IN FAVOR OF THE PLAN TORONTOBASED PEOPLES HAS OPERATED UNDER CANADIAN BANKRUPTCY COURT PROTECTION SINCE DECEMBER IRVING GERSTEIN MARVIN GERSTEIN'S NEPHEW AND PEOPLES' FORMER CHAIRMAN CONTROLS JUST OVER HALF OF THE COMPANY'S COMMON SHARES WHICH HE VOTED IN FAVOR OF THE RESTRUCTURING PLAN THE PLAN REQUIRED A TWOTHIRDS MAJORITY TO PASS PEOPLES SAID IT NOW EXPECTS ITS PRINCIPAL BANKER BANK OF NOVA SCOTIA WILL SEIZE CONTROL OF THE COMPANY BANK OF NOVA SCOTIA IS OWED 103 MILLION CANADIAN DOLLARS US802 MILLION BUT PEOPLES SAID IT BELIEVES THE BANK WOULD RECOVER JUST C78 MILLION BY LIQUIDATING THE FIRM'S ASSETS 9307300038 930730 TECHNOLOGY & HEALTH FOUNDATION HEALTH SHARES FALL SHARPLY AFTER LOSS OF MILITARY CONTRACT TO AETNA BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL FOUNDATION HEALTH CORP AND OTHER LOSERS IN THE BIDDING FOR A HUGE MILITARY MEDICAL CONTRACT WOKE UP GASPING FOR OXYGEN YESTERDAY LATE WEDNESDAY THE DEFENSE DEPARTMENT AWARDED AETNA LIFE & CASUALTY A 35 BILLION CONTRACT FOR PROVIDING HEALTH CARE TO ABOUT 800000 MILITARY RETIREES AND DEPENDENTS IN CALIFORNIA AND HAWAII THE CONTRACT WHICH HAS BEEN UP FOR BID FOR TWO YEARS HAS BEEN VIEWED AS A POTENTIAL MODEL FOR FUTURE HEALTHCARE REFORMS BECAUSE IT INVOLVES A LARGE POOL OF CUSTOMERS BANDING TOGETHER TO TRY TO EXTRACT COST BREAKS THROUGH COMPETITIVE BIDDING THE AWARD WAS A COUP FOR AETNA WHICH IS BASED IN HARTFORD CONN AND A BLOW FOR ITS RIVALS PARTICULARLY FOUNDATION WHICH HAS HAD THE CONTRACT SINCE 1988 FOUNDATION'S SHARES CRATERED FALLING 352 TO 2075 DOWN 1125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOUNDATION BASED IN RANCHO CORDOVA CALIF CURRENTLY GETS AS MUCH AS 40 OF ITS REVENUE AND A SIMILAR PORTION OF ITS NET INCOME FROM THE CONTRACT QUALMED INC ANOTHER FINALIST FOR THE CONTRACT SAID IT WILL WRITE OFF 23 MILLION OF CONTRACTRELATED COSTS IN ITS SECOND QUARTER THE WRITEOFF WILL SHAVE EIGHT CENTS A SHARE OFF THE PUEBLO COLO COMPANY'S EARNINGS QUALMED STOCK SKIDDED 73 TO 1425 DOWN 1125 IN COMPOSITE TRADING ON THE BIG BOARD THE OTHER FINALIST WELLPOINT HEALTH NETWORKS INC WHICH IS BASED IN WOODLAND HILLS CALIF AND IS 80OWNED BY BLUE CROSS OF CALIFORNIA SAID IT EXPECTED NO MATERIAL FINANCIAL IMPACT BUT ITS STOCK GOT ROUGHED UP NONETHELESS SHARES FELL 1375 OR 45 TO 2950 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALL OF THE JILTED BIDDERS SAID THEY WOULD ASK THE DEFENSE DEPARTMENT FOR MORE INFORMATION ON WHY THEY LOST OUT AND MIGHT CONSIDER CHALLENGING THE AWARD OF THE CONTRACT TO AETNA INDEED SOME EXECUTIVES ON THE LOSING SIDE AND SEVERAL ANALYSTS QUESTIONED IF AETNA COULD MAKE ANY MONEY ON THE CONTRACT AT ITS BID OF 35 BILLION OVER FIVE YEARS THE CONTRACT PRODUCED 695 MILLION IN REVENUE FOR FOUNDATION IN THE PAST FISCAL YEAR AT THAT LEVEL OF REVENUE THE ANNUAL PROFIT MARGIN ON THE CONTRACT UNDER THE AETNA'S BID WOULD BE RAZOR THIN IT'S HARD TO SEE HOW THEY'LL MAKE MONEY ON THE DEAL AT THAT BID GRUMBLED ONE EXECUTIVE AT A REBUFFED BIDDER ADDED RONALD WILLIAMS A WELLPOINT EXECUTIVE VICE PRESIDENT AETNA'S BID IS CERTAINLY VERY AGGRESSIVE AETNA DISMISSED SUCH TALK WE THINK IT'S AN OPPORTUNITY FOR AETNA TO MAKE A FAIR PROFIT AND WE THINK WE CAN DO IT OTHERWISE WE WOULDN'T HAVE MADE THE BID SAID ROBERT H KAPLAN AN AETNA VICE PRESIDENT IN BIG BOARD COMPOSITE TRADING AETNA ROSE 225 TO 60 FOUNDATION CLEARLY TOOK THE BIGGEST HIT THE AETNA VICTORY WAS PARTICULARLY BITTER FOR FOUNDATION BECAUSE AETNA HAS BEEN A BIG SUBCONTRACTOR FOR FOUNDATION ON THE CONTRACT IN THE PAST MOREOVER FOUNDATION'S PROSPECTS FOR REPLACING THE LOST REVENUE ARE UNCLEAR A PHASEOUT PERIOD WILL MEAN FOUNDATION STILL WILL GET SOME REVENUE FROM THE CONTRACT WELL INTO 1994 AFTER THAT THE COMPANY WILL HAVE TO RELY ON ADDING CUSTOMERS AT ITS BIG HMO POSSIBLY THROUGH ACQUISITIONS OF OTHER HMO OPERATORS IT EXPECTS TO COMPLETE TWO ACQUISITIONS THIS QUARTER THAT WILL BOOST ANNUAL REVENUE BY MORE THAN 210 MILLION NONETHELESS FOUNDATION SAID THE COMPANY WILL HAVE PRESSURE ON EARNINGS 9307300037 930730 BUSINESS BRIEF BATTLE MOUNTAIN GOLD CO LOSS WIDENED IN 2ND PERIOD AS OPERATING COSTS INCREASED BATTLE MOUNTAIN GOLD CO HOUSTON REPORTED A WIDER LOSS FOR THE SECOND QUARTER BECAUSE OF HIGHER OPERATING COSTS AT TWO OF ITS MINES AND LOWER GOLD SALES THE COMPANY SAID IT EXPECTS THIRDQUARTER RESULTS TO REFLECT HIGHER GOLD PRICES BATTLE MOUNTAIN ALSO SAID IT EXPECTS ITS PRODUCTION COSTS TO FALL IN THE SECOND HALF FOR THE SECOND QUARTER THE COMPANY REPORTED A NET LOSS OF 26 MILLION OR THREE CENTS A SHARE COMPARED WITH A NET LOSS OF 2 MILLION OR TWO CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE WAS 421 MILLION DOWN 6 FROM 446 MILLION THE COMPANY'S REALIZED GOLD PRICE WAS 360 AN OUNCE EVEN WITH THE YEAR BEFORE 9307300036 930730 DENMARK WITHDRAWS CANDIDATE FOR POST AT DEVELOPMENT BANK LONDON DENMARK WITHDREW ITS CANDIDATE FOR THE VACANT PRESIDENCY OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WHILE ITALY CONTINUED TO FIGHT A CONSENSUS SUPPORTING THE FRONTRUNNER FRENCH CENTRAL BANKER JACQUES DE LAROSIERE DENMARK STRESSES THE IMPORTANCE OF UNITY AMONG THE EUROPEAN COMMUNITY'S MEMBERS TO SUPPORT ONE CANDIDATE SAID MINISTER FOR DEVELOPMENT COOPERATION HELLE DEGN IN A LETTER YESTERDAY TO THE EBRD'S GENERAL SECRETARY BART LE BLANC WITHDRAWING THE NAME OF EC'S DANISH COMMISSIONER HENNING CHRISTOPHERSEN 53 YEARS OLD THE EBRD IS A BANK SET UP TO AID THE DEVELOPMENT OF THE ECONOMIES OF THE FORMER SOVIET BLOC NATIONS IN EASTERN EUROPE ITALY HOWEVER REMAINED IRKED AT WHAT IT CONSIDERED STRONGARM TACTICS BY ITS EC FELLOWS FORMER PREMIER GIULIANO AMATO IS STILL ITALY'S CANDIDATE A SENIOR TREASURY OFFICIAL IN MILAN SAID YESTERDAY AFTERNOON THERE'S NO CONSENSUS AMATO REMAINS A CANDIDATE FOR THE JOB WE HAVE NOT RENOUNCED ON ANYTHING THE OFFICIAL SAID THE ITALIANS ARE FURIOUS THAT PHILIPPE MAYSTADT THE BELGIAN FINANCE MINISTER SENT A LETTER WEDNESDAY AFTERNOON HOURS BEFORE THE DEADLINE FOR SUBMITTING CANDIDATES FOR THE POSITION TO HIS 11 EC COUNTERPARTS SAYING A CONSENSUS HAD BEEN REACHED IN FAVOR OF MR DE LAROSIERE THEY TRIED TO GET A RESULT AND THEY FORCED A LITTLE BIT THE SITUATION SAID GIUSEPPE MARESCA THE EBRD'S DIRECTOR FOR ITALY MR DE LAROSIERE IS A VERY RESPECTED PERSON AND ALL MEMBERS WOULD BE WILLING TO VOTE FOR HIM INCLUDING ITALY BUT PROBABLY SOME EC COUNTRIES WOULD PREFER TO VOTE AMATO THE DISPUTE IS ALL A BIT SILLY SAID ONE EBRD OFFICIAL WHO PREDICTED THE BANK WOULD ANNOUNCE TWO CANDIDATES FOR THE POSITION TODAY MR DE LAROSIERE AND FORMER POLISH FINANCE MINISTER LESZEK BALCEROWICZ MR BALCEROWICZ ISN'T VIEWED AS LIKELY TO HAVE ENOUGH VOTES TO WIN THE POST THE ITALIAN GOVERNMENT HAS SAID IT FEELS FRANCE ALREADY OCCUPIES TOO MANY INTERNATIONAL POSITIONS THE PRESIDENCY OF THE EBRD BECAME VACANT AFTER JACQUES ATTALI RESIGNED FOLLOWING ALLEGATIONS OF MISMANAGEMENT 9307300035 930730 INTERNATIONAL WORLD ECONOMY GEORGIA'S SOUTHWIRE CITES SMALL ORDERS BIG RUNAROUND IN TRADE WITH JAPAN BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL CARROLLTON GA SOUTHWIRE CO IS A SMALLTOWN COMPANY GONE GLOBAL BUT IN THIS LARGER SETTING IT FACES CHALLENGES THE FOUNDER PROBABLY NEVER IMAGINED WHEN HE BEGAN MAKING UTILITY WIRE HERE SOME 45 YEARS AGO THESE NOW INCLUDE TRADE PROBLEMS WITH JAPAN SOUTHWIRE HAS SPENT FIVE YEARS TRYING TO SELL LARGE ALUMINUM WIRE WITH A STEEL CORE THE BIG STUFF THAT POWER GENERATING COMPANIES USE TO TRANSMIT ELECTRICITY TO JAPANESE UTILITIES SO FAR IT HAS RECEIVED ONLY A FEW SMALL ORDERS AND IN ITS VIEW A BIG RUNAROUND SUCH EXPERIENCES HELP EXPLAIN WHY TRADE RELATIONS BETWEEN JAPAN AND THE US AND OTHER INDUSTRIAL NATIONS REMAIN SO ABRASIVE IN BRIEF SOUTHWIRE SAYS IT CAN DELIVER HIGHQUALITY WIRE ON A RELIABLE BASIS AT PRICES 20 TO 30 LOWER THAN THOSE OF JAPANESE COMPETITORS YET CAN'T GET ITSELF CONSIDERED FOR MAJOR ORDERS INSTEAD IT RECEIVES COMPLEX EVASIONS WHICH A COMPANY MEMO SAYS PURPOSEFULLY STALL AND DELAY ANY CHANCE OF PLACING AN ORDER AS LONG AS POSSIBLE THOSE IN THE GLASS AND AUTO PARTS INDUSTRIES AMONG OTHERS TELL SIMILAR STORIES THE BARRIERS AREN'T OFFICIAL THERE ARE NO QUOTAS TARIFFS OR OTHER GOVERNMENT OBSTACLES RATHER SOUTHWIRE FACES THE COMMON PROBLEM OF OVERCOMING COZY RELATIONSHIPS AMONG BUYERS AND SELLERS THAT AFFECT SO MUCH OF THE JAPANESE ECONOMY IN THIS CASE SIX MAJOR UTILITIES GET MOST OF THEIR CONDUCTOR AT HIGH PRICES FROM FIVE LEADING MAKERS AND NONE WANTS FOREIGN INTRUDERS ON HAND AND AS IN OTHER INDUSTRIES THERE ARE INTERLOCKING OWNERSHIP PATTERNS DESIGNED TO KEEP OUTSIDERS AWAY SOUTHWIRE'S RESPONSE IS TO BOTH PERSEVERE AND COMPLAIN IT IS MEETING SPECIAL TECHNICAL STANDARDS DEMANDED BY JAPANESE UTILITIES DIFFERENT FROM THOSE ELSEWHERE IT PROVIDES REAMS OF DATA ABOUT ITSELF TO JAPANESE UTILITIES ITS EXECUTIVES HAVE VISITED POTENTIAL CUSTOMERS FIVE TIMES AND IT INVITES JAPANESE EXPERTS TO STUDY SOUTHWIRE PLANTS AND PRODUCTS A TEAM IS DUE NEXT MONTH BUT IT HAS ALSO COMPLAINED IN WASHINGTON A TRADE OFFICIAL THERE CONCEDES HE'S HEARD OF THE PROBLEM THOUGH HE WON'T SAY WHAT THE CLINTON ADMINISTRATION MAY DO SOUTHWIRE ALSO HAS BEGUN MAKING ITS CASE PUBLIC WE DON'T WANT TO BE PERCEIVED AS WHINERS SAYS WAYNE MCAMIS SENIOR VICE PRESIDENT BUT SOMETHING'S GOT TO BE DONE TO OPEN UP THE OPPORTUNITIES WHICH EXIST THERE THOUGH SOUTHWIRE'S ROOTS LIE IN RURAL GEORGIA ITS APPROACH IS SOPHISTICATED AND INTERNATIONAL SEVERAL YEARS AGO MR MCAMIS EXPLAINS WE REALIZED WE WERE OPERATING IN A WORLD MARKET WITH COMPETITORS LIKE ALCATEL BICC PIRELLI AND SUMITOMO JAPAN SEEMED A GOOD PLACE TO EXPAND UTILITIES THERE BOUGHT SOME 66000 TONS OF ALUMINUM CABLE IN 1991 COMPANY SALES ONLY 504000 BACK IN 1950 NOW EXCEED 13 BILLION AND IT WANTS TO KEEP GROWING IN FACT SOUTHWIRE HAS HAD A TOKYO OFFICE FOR 20 YEARS AND FELT FAMILIAR WITH JAPAN THAT'S BECAUSE IT MAKES EQUIPMENT FOR CONTINUOUS CASTING OF METAL ROD IMPORTANT TO WIREMAKERS ANYWHERE AND HAS SOLD SEVERAL LARGE SYSTEMS THERE THESE SALES DIDN'T FACE PROBLEMS SINCE NO JAPANESE COMPANY OFFERS SIMILAR EQUIPMENT BUT THE WIRE BUSINESS IS ANOTHER MATTER ONE PROBLEM IS WHAT SOUTHWIRE CALLS THE MOVING TARGET OF PRODUCT STANDARDS AGAIN AND AGAIN EXECUTIVES WOULD COLLECT PRODUCT SPECIFICATIONS FROM COMPANIES LIKE TOKYO ELECTRIC POWER CO THE BIGGEST PRIVATE UTILITY AND THEIR NO 1 TARGET THEN WHILE SOUTHWIRE WAS DECIDING HOW TO MEET THE STANDARDS TOKYO ELECTRIC OR OTHERS WOULD CHANGE THEM SOMETIMES WITHIN TWO WEEKS F RIDLEY THRASH JR A SENIOR ENGINEER SAYS IN ONE CASE HIS COMPANY RECEIVED A TWOPAGE LIST OF SPECIFICATIONS WHEN THOSE PROVED NO PROBLEM IT RECEIVED A 12PAGE REVISION AND AFTER SAYING IT COULD MEET THOSE IT GOT A 45PAGE VERSION THUS SOUTHWIRE CONCLUDES THE REAL REASON WHY IT'S NOT TREATED AS EQUAL TO JAPANESE SUPPLIERS IS SIMPLE THE COMPANY IS AMERICAN IN FACT NO FOREIGNERS SELL MUCH BIG WIRE IN JAPAN TOKYO ELECTRIC DENIES DISCRIMINATION WE ARE NOT CLOSED TO FOREIGN MAKERS SAYS A SPOKESMAN ON THE CONTRARY WE ARE PRETTY OPEN IN PURCHASING MATERIALS FROM FOREIGN MAKERS BUT SOUTHWIRE'S TALE INDICATES OTHERWISE UNTIL JAPAN PRIES OPEN SUCH CLOSED MARKETS PERHAPS BY ENFORCING ITS OWN ANTITRUST LAWS ECONOMIC RELATIONS WITH THE US WILL REMAIN SOUR WITH STRONGER DEMANDS FOR US RETALIATION WHICH WOULD SERVE NO ONE'S LONGTERM INTERESTS 9307300034 930730 TECHNOLOGY BRIEF CEPHALON INC KYOWA HAKKO TO DEVELOP SELL MYOTROPHIN IN JAPAN CEPHALON INC WEST CHESTER PA SAID A JAPANESE COMPANY WILL DEVELOP AND SELL CEPHALON'S EXPERIMENTAL DRUG MYOTROPHIN IN JAPAN MYOTROPHIN WHICH IS UNDERGOING CLINICAL TRIALS IN THE US IS A RECOMBINANT HUMAN FORM OF A PROTEIN THAT PROMOTES THE SURVIVAL OF NERVES IT WOULD BE USED FOR THE TREATMENT OF CERTAIN DEGENERATIVE NEUROLOGICAL DISORDERS UNDER AN AGREEMENT BETWEEN CEPHALON AND KYOWA HAKKO KOGYO CO THE JAPANESE COMPANY WILL PAY CEPHALON LICENSING FEES AND OTHER PAYMENTS THE AMOUNT OF THE FEES WASN'T DISCLOSED CEPHALON WILL RETAIN AN OPTION TO COPROMOTE MYOTROPHIN WITH KYOWA HAKKO IN JAPAN CEPHALON DEVELOPS DRUGS FOR THE TREATMENT OF NEUROLOGICAL DISEASES AND DISORDERS SUCH AS PERIPHERAL NEUROPATHY AND ALZHEIMER'S DISEASE KYOWA HAKKO WITH 1992 SALES OF 269 BILLION IS A MAKER OF DRUGS CHEMICALS FOODS AND BEVERAGES 9307300033 930730 TECHNOLOGY & HEALTH MATSUSHITA PLANS TO BEGIN SELLING A FLATSCREEN TV BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MATSUSHITA ELECTRIC INDUSTRIAL CO IN ITS LATEST BID TO SHAKE OFF A LINGERING SLUMP IN ITS CORE CONSUMERELECTRONICS BUSINESS SAID IT WILL BEGIN SELLING A LARGE FLATSCREEN TELEVISION THIS YEAR THE MOVE MARKS THE ENTRY OF MATSUSHITA THE WORLD'S LARGEST CONSUMERELECTRONICS COMPANY INTO THE INCREASINGLY ACTIVE FIELD OF FLATSCREEN DISPLAYS WHICH CAN BE USED IN BOTH TELEVISIONS AND COMPUTERS CALLED FLAT VISION THE COMPANY'S NEW TELEVISION WILL HAVE A 14INCHWIDE SCREEN THAT IS ONLY 10 CENTIMETERS THICK THE COMPANY ALSO CLAIMS ITS SCREEN WILL DELIVER A PICTURE AS SHARP AS THOSE OF THE LIQUIDCRYSTAL DISPLAYS USED IN NOTEBOOK COMPUTERS AND PORTABLE TELEVISION SETS WHILE MATSUSHITA PLANS AN INITIAL PRODUCTION RUN OF ONLY 1000 UNITS A MONTH IT SAYS IT EXPECTS FLAT VISION TO ACCOUNT FOR 10 OF THE WORLD DISPLAY MARKET BY THE YEAR 2000 THE TV SET WILL GO ON SALE IN JAPAN IN OCTOBER AND EXPORTS WILL FOLLOW BY THE END OF NEXT YEAR AT THE EARLIEST THE LIST PRICE WILL BE 288000 YEN 2723 REACTION FROM ANALYSTS WAS MIXED CHUCK GOTO OF SG WARBURG JAPAN INC FOR INSTANCE REVERSED HIS FORMERLY BEARISH OPINION OF MATSUSHITA SOLELY ON THE STRENGTH OF THE NEW PRODUCT THIS IS SOMETHING I'VE BEEN WAITING FOR FOR FIVE YEARS HE SAID THE NEW FLAT PANEL HAS A LOT OF MARKET POTENTIAL AT THE OTHER END OF THE SPECTRUM JEFF CAMP OF JARDINE FLEMING SECURITIES LTD SAID THE NEW PRODUCT IS NOTHING TO GET EXCITED ABOUT MR CAMP ARGUED THAT THE TELEVISION IS STILL TOO EXPENSIVE AND ISN'T LIGHT OR ENERGYEFFICIENT ENOUGH TO COMPETE WITH OTHER FLATPANEL TECHNOLOGIES 9307300032 930730 EPA MONITORS MEXICAN BORDER FLOW OF WASTES TRACKING USBASED PLANTS HELPS BLUNT A CRITICISM OF PROPOSED NAFTA PACT BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE MAJOR ROADBLOCKS TO THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT HAS LONG BEEN THE INABILITY OF PARTICIPANTS TO DISPROVE CLAIMS THAT USOWNED MANUFACTURING PLANTS IN MEXICO OR MAQUILADORAS HAVE ILLEGALLY DISPOSED OF HAZARDOUS WASTES AT LONG LAST THAT MAY BE CHANGING UNTIL RECENTLY THE US ENVIRONMENTAL PROTECTION AGENCY HASN'T BEEN ABLE TO MEASURE THE PROBLEM OR EFFECTIVELY ENFORCE THE LAW BECAUSE IT LACKED A SYSTEM FOR MONITORING WASTE SHIPMENTS CROSSING THE BORDER NOW HOWEVER THE EPA HAS LASHED TOGETHER A VIABLE IF STILL LIMITED COMPUTERIZED SYSTEM THAT CORRELATES BASIC WASTERELATED DOCUMENTS FROM BOTH COUNTRIES THAT IS A MARKED IMPROVEMENT FROM THE DAYS WHEN ENVIRONMENTAL REGULATORS RELIED ON INFORMANTS' TIPS CITIZENS' COMPLAINTS AND BLIND LUCK TO NAB ILLEGAL DUMPERS IT'S A DETERRENT FACTOR SAYS DICK KAMP DIRECTOR OF THE BORDER ECOLOGY PROJECT AN ARIZONA ENVIRONMENTAL GROUP ACTIVE IN FREETRADE ISSUES IT'S A NECESSARY THING TO DO AND IT'S LONG OVERDUE BUT THE SYSTEM WON'T RESCUE NAFTA FROM MOUNTING POLITICAL OPPOSITION OR RESOLVE ALL BORDER ENVIRONMENTAL PROBLEMS CRITICS CONTEND IT LEAVES SOME WASTE STREAMS VIRTUALLY UNMONITORED AND THE REGION LACKS ADEQUATE DISPOSAL FACILITIES AND REGULATORY RESOURCES THE TRACKING SYSTEM ITSELF ISN'T ENFORCEMENT CAUTIONS MR KAMP STILL THE SYSTEM ALREADY HAS HAD SOME IMPACT BASED ON DATA SPIT OUT BY THE MONITORING SYSTEM THE EPA PROPOSED A TOTAL OF 180000 IN CIVIL PENALTIES LAST MONTH AGAINST FOUR USBASED MAQUILADORA OWNERS FOR ALLEGED VIOLATIONS RANGING FROM IMPROPERLY MANIFESTED WASTE SHIPMENTS TO USE OF MISIDENTIFIED HAULERS ADDITIONAL CASES ARE UNDER INVESTIGATION AND MORE MAQUILADORA OPERATORS ARE REQUESTING EPA COMPLIANCE WORKSHOPS THEY KNOW NOW THAT WE CAN TRACK THEM SAYS ONE EPA ENFORCEMENT OFFICIAL THAT WAS A MONUMENTAL TASK IN THE DAYS WHEN MEXICO AND THE US REFUSED TO TRADE SHIPPING MANIFESTS OR OTHER BASIC INFORMATION AS A RESULT EPA ENFORCERS DIDN'T KNOW WHAT CHEMICALS MAQUILADORAS WERE USING OR WHAT WASTES THEY WERE GENERATING DESPITE A REQUIREMENT THAT THE USOWNED PLANTS SHIP HAZARDOUS WASTE DERIVED FROM IMPORTED CHEMICALS BACK TO THIS COUNTRY FOR DISPOSAL WHEN EPA OFFICIALS VISITED THEIR MEXICAN COUNTERPARTS THREE YEARS AGO TO REVIEW WASTERELATED PAPERWORK THEY FOUND THOUSANDS OF DISORGANIZED DOCUMENTS JAMMED INTO BOXES BACK HOME THE QUALITY OF US CUSTOMS BORDER CHECKS VARIED WIDELY SHIPPING MANIFESTS TOOK WEEKS TO REACH THE EPA AND NO ONE EFFECTIVELY MONITORED THE RESULTING BLIZZARD OF PAPERWORK ONLY ABOUT 30 OF THE ESTIMATED 1035 WASTEPRODUCING MAQUILADORAS SURVEYED IN A 1990 MEXICAN STUDY HAD EVER FILED WASTESHIPPING MANIFESTS ONLY A HANDFUL HAD EVER REGISTERED TO TRANSPORT WASTE THROUGH TEXAS AT THAT TIME AND BECAUSE OF A COMPUTER GLITCH THE EPA COULDN'T DISTINGUISH IMPORTED FROM DOMESTIC WASTE SHIPMENTS IN CALIFORNIA MEANWHILE AS HEAVILY PUBLICIZED DISCOVERIES OF DUMPED WASTE FUELED ENVIRONMENTALISTS' CLAIMS THAT NAFTA WOULD CREATE AN ECOLOGICAL WASTELAND THE REGULATORY GAP BECAME AN INCREASING DRAG ON NAFTA APPROVAL IT HELPED SPAWN FOR EXAMPLE LAST MONTH'S FEDERAL COURT ORDER REQUIRING THE CLINTON ADMINISTRATION TO CONDUCT A MASSIVE ASSESSMENT OF THE TRADE PACT'S ENVIRONMENTAL IMPACTS EFFORTS TO CLOSE THE GAP BEGAN ABOUT THREE YEARS AGO WHEN THE EPA AND ITS MEXICAN COUNTERPART THE SECRETARIAT OF SOCIAL DEVELOPMENT BEGAN SWAPPING CHEMICAL IMPORTATION AND WASTE SHIPPING DOCUMENTS ALONG WITH NAMES OF REGISTERED HAULERS AND DISPOSAL FACILITIES JOE SCHULTES A DALLASBASED EPA ENGINEER WAS CHARGED WITH PUTTING TOGETHER THE TRACKING SYSTEM BACKED BY A FEW CONSULTANTS A PALTRY 30000 STARTUP BUDGET AND A LOWPOWERED COMPUTER IT HASN'T BEEN EASY I'M JUST TRYING TO FIGURE OUT WHERE THE WASTE IS HE SAYS BECAUSE NEITHER COUNTRY HAD A MASTER LIST OF MAQUILADORA OWNERS MR SCHULTES COMBED THROUGH OLD NEWSPAPERS AND TRADE MAGAZINES TO MATCH UP US CORPORATIONS WITH THEIR MEXICAN PLANTS IN REVIEWING MANIFESTS AS THEY WERE ENTERED INTO THE DATA BASE HE FOUND WASTE SHIPMENTS HAD CROSSED THE BORDER DESPITE DOCUMENTS THAT WERE ILLEGIBLE OR DIDN'T NAME THE MEXICAN GENERATOR SOME HAULERS HAD EVEN USED FALSE EPA IDENTIFICATION NUMBERS BUT DESPITE SUCH GAPS MR SCHULTES CREATED A DATA BASE THAT HAS ALLOWED BOTH COUNTRIES TO MATCH SPECIFIC WASTE STREAMS WITH INDIVIDUAL MAQUILADORAS PINPOINT IMPROPERLY IDENTIFIED WASTE HAULERS OR DISPOSAL FACILITIES AND IDENTIFY WASTEGENERATING PLANTS THAT HAVE RARELY MADE A DOCUMENTED SHIPMENT WHILE ENCOURAGED BY THE SYSTEM'S POSSIBILITIES ENVIRONMENTALISTS AREN'T COMPLETELY SATISFIED SOME CONTEND THAT THE TWO GOVERNMENTS SHOULD OPEN THE RESULTING DATA BASE TO PUBLIC REVIEW IF ALL THIS INFORMATION IS CONFIDENTIAL IT'S A LITTLE HARD FOR ME TO PLACE MUCH FAITH IN IT SAYS MARY KELLY OF THE TEXAS CENTER FOR POLICY STUDIES AN ENVIRONMENTAL STUDIES GROUP OTHERS BEMOAN ITS LIMITATIONS WHAT IT WON'T DO IS DEAL WITH THE PROBLEMS ASSOCIATED WITH ENVIRONMENTAL WASTES OUTSIDE THE BORDER REGION SAYS JOHN AUBREY WHO MONITORS TRADE ISSUES FOR THE SIERRA CLUB EPA OFFICIALS ALSO ACKNOWLEDGE THAT THE DATA BASE DOESN'T INCLUDE MEXICANOWNED MANUFACTURERS IN THE BORDER REGION NOR DOES IT TRACK CHEMICAL SHIPMENTS OR THE RESULTING WASTE STREAMS TO THE GROWING NUMBER OF MAQUILADORAS THAT PURCHASE THEIR RAW MATERIALS FROM MEXICAN SUPPLIERS MOREOVER ENVIRONMENTAL ENFORCERS ON BOTH SIDES OF THE BORDER REMAIN THINLY STRETCHED AND BECAUSE THE TWO COUNTRIES ONLY TRADE RAW DATA ON A QUARTERLY BASIS THE COMPUTER SYSTEM CAN'T YET TRACK SHIPMENTS WHILE THEY ARE STILL ON THE ROAD THE SYSTEM INDICATES THAT ABOUT 59 MILLION TONS OF HAZARDOUS WASTE WERE SHIPPED BACK TO THIS COUNTRY FROM MEXICO LAST YEAR THAT IS A 17 INCREASE IN VOLUME FROM 1991 AND MR SCHULTES CONTENDS THAT IT REFLECTS GROWING COMPLIANCE BY THE MAQUILADORAS BUT HE ALSO BELIEVES IT IS STILL LESS THAN HALF OF THE AMOUNT THAT SHOULD BE COMING BACK BASED ON THE SORTS OF MANUFACTURING INVOLVED HE BELIEVES MANY PLANTS DESPITE A LACK OF SAFE STORAGE CAPACITY ARE STOCKPILING WASTES TO AVOID THE COSTS AND THE REGULATORY OVERSIGHT INVOLVED IN WASTE DISPOSAL WHICH MEANS MR SCHULTES HAS MUCH MORE WORK TO DO WE'RE ONLY NOW GETTING REAMS OF INFORMATION HE SAYS I SEE A MOUNTAIN AHEAD 9307300031 930730 BUSINESS BRIEF NORTHERN TELECOM LTD TELEPHONE SWITCHING GEAR SOLD TO CHINESE PROVINCES NORTHERN TELECOM LTD SAID IT SOLD TELEPHONE SWITCHING SYSTEMS VALUED AT 102 MILLION TO THREE PROVINCES IN CHINA THE TORONTO COMPANY SAID THE CONTRACTS WITH POST AND TELECOMMUNICATIONS ADMINISTRATIONS IN CHONGQING HEBEI AND JILIN ARE FOR LARGECAPACITY DMS100 AND DMS100 SUPERNODE SWITCHING SYSTEMS INSTALLATION OF THE BIG COMPUTERS THAT CHANNEL CALLS THROUGH THE TELEPHONE NETWORK IS EXPECTED TO BE COMPLETED WITHIN 18 MONTHS THE COMPANY SAID NORTHERN TELECOM REACHED AGREEMENT IN JUNE WITH CHINA'S STATE PLANNING COMMISSION THAT COVERED MANUFACTURING RESEARCH AND DEVELOPMENT TECHNICAL AND TRAINING PROJECTS TO HELP MODERNIZE CHINA'S TELECOMMUNICATIONS NETWORKS 9307300030 930730 INTERNATIONAL MODEST BUNDESBANK RATE CUT REFLECTS CONTINUED PESSIMISM ABOUT ECONOMY BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN THE BUNDESBANK'S EFFORT TO DISCIPLINE GERMANY'S ECONOMY REGARDLESS OF THE PAIN INFLICTED ON GERMANY'S EUROPEAN PARTNERS UNDERSCORES THAT THE ROAD OUT OF RECESSION FOR THE CONTINENT'S LARGEST ECONOMY IS STREWN WITH OBSTACLES THE CENTRAL BANK'S DECISION TO MAKE ONLY A SMALL REDUCTION IN INTEREST RATES YESTERDAY IS YET ANOTHER INDICATION THAT THE CAUTIOUS BANKERS DON'T ENTIRELY BUY RECENT EXPRESSIONS OF OPTIMISM FROM POLITICIANS IN BONN BOTH FINANCE MINISTER THEO WAIGEL AND ECONOMICS MINISTER GUENTER REXRODT HAVE CLAIMED SINCE JUNE THAT THE BOTTOM OF THE VALLEY HAS BEEN REACHED BUT SEVERAL LEADING INDUSTRIALISTS HAVE EXPRESSED FEARS THAT THERE COULD BE A LONG BOUT OF PAINFUL RESTRUCTURING BEFORE A COMEBACK CAN BE CLAIMED OFFICIAL FORECASTS SAY THE WESTERN GERMAN ECONOMY WILL STOP SHRINKING IN THE SECOND HALF AND AFTER A 15 FALL IN OUTPUT THIS YEAR WILL MAKE UP THAT MUCH GROUND NEXT YEAR BUT EVEN THIS SCENARIO FORETELLS RISING UNEMPLOYMENT THAT COULD LEAVE FOUR MILLION OFFICIALLY OUT OF WORK BY 1994 IN LESS THAN 18 MONTHS BUSINESS AND THE GOVERNMENT OF CHANCELLOR HELMUT KOHL HAVE DRIFTED INTO OPPOSING CAMPS AS THE INITIAL BOOM FOLLOWING REUNIFICATION TURNED INTO THE WORST POSTWAR RECESSION ECONOMISTS SAY THAT GERMANY HAS TRADITIONALLY ONLY EMERGED FROM ECONOMIC DOWNTURNS WHEN FOREIGN DEMAND FOR ITS EXPORTS HAS REVIVED EXPORTS PLUMMETED THROUGH APRIL THE LAST MONTH FOR WHICH FIGURES ARE AVAILABLE AND WHILE FOREIGN ORDERS STARTED PICKING UP IN MAY AND JUNE OPTIMISM SO FAR HAS FOCUSED ALMOST EXCLUSIVELY ON DEMAND FROM THE US ECONOMY SINCE IT ACCOUNTS ON AVERAGE FOR LESS THAN 10 OF GERMANY'S TOTAL FOREIGN TRADE THOUGH EVEN THE BEST NEWS FROM THE US HAS DONE LITTLE TO RAISE SPIRITS WHILE EXPERTS SEE NO IMMINENT STIMULUS FROM ABROAD FOR THE EXPORTDEPENDENT ECONOMY PERHAPS THE MOST HOPEFUL SIGN FOR GERMANS IS THAT THE MARK HAS FALLEN FAIRLY SHARPLY AGAINST THE DOLLAR WHICH IS A BOOST FOR DOLLARDENOMINATED TRADE A FURTHER DROP IN THE MARK'S VALUE BECAUSE OF A LARGER BUNDESBANK INTEREST RATE CUT WOULD OF COURSE HAVE BEEN GREETED WARMLY BY EXECUTIVES PARTICULARLY IN SUCH CRITICAL AND DEPRESSED INDUSTRIES AS AUTOMOBILES CHEMICALS AND MACHINE TOOLS DOMESTICALLY THERE HAS BEEN LITTLE TO DISTRACT GERMANS FROM THEIR ECONOMIC WOES IN FACT THE SUMMER HOLE THE ANNUAL NEWS DROUGHT THAT OCCURS DURING GERMAN OFFICIALDOM'S LENGTHY HOLIDAYS HAS BEEN FILLED BY A CONFLICT IN EASTERN GERMANY THAT HAS UNDERSCORED THE ECONOMIC BURDEN OF THE REGION WHICH HAS RECEIVED ABOUT 100 BILLION IN PUBLIC TRANSFERS BUT SHOWS NO SIGNS OF ACHIEVING SELFSUSTAINED GROWTH DISTRAUGHT BY THE PLANNED CLOSURE OF THEIR COMPANY WORKERS IN THE THURINGIAN TOWN OF BISCHOFFERODE HAVE OCCUPIED A LOCAL POTASH WORKS FOR MORE THAN THREE MONTHS SINCE JULY 1 27 HAVE WAGED A HUNGER STRIKE FIFTEEN MORE BEGAN THE STRIKE BUT HAVE HAD TO GIVE IT UP THE TACTIC HAS PUT STATE AND FEDERAL OFFICIALS ON THE DEFENSIVE AND PROMPTED EFFORTS TO SECURE TWOYEAR JOBS FOR THE 700 WORKERS STILL ON THE PAYROLLS THERE BUT IN A REGION WHERE THREEFOURTHS OF ALL INDUSTRIAL JOBS HAVE DISAPPEARED SINCE 1990 THE WORKERS HAVE BEEN UNWILLING TO SETTLE AND EMPLOYEES AT OTHER COMPANIES HAVE BEEN TURNING OUT TO DEMONSTRATE IN SUPPORT AT ONE SUCH PROTEST OF 5000 PEOPLE IN THURINGIA WEDNESDAY A UNION OFFICIAL THREATENED THAT SOON BISCHOFFERODE WILL BE EVERYWHERE FOR CHANCELLOR KOHL'S GOVERNMENT WHICH IS DESPERATE TO KEEP ITS OUTLAYS DOWN MOUNTING PRESSURE OF THIS KIND COULD POSE A FORMIDABLE PROBLEM BONN IS ALREADY ANXIOUS ABOUT SHORING UP ITS REPUTATION WITH THE BUSINESS COMMUNITY WHICH IS EXASPERATED BY HEAVY SOCIAL SPENDING AND A HISTORICALLY HIGH TAX BURDEN TO THAT END THE GOVERNMENT UNVEILED IN JUNE 13 BILLION IN BUDGET CUTS MOST OF THEM ACHIEVED THROUGH CURTAILING UNEMPLOYMENT BENEFITS THE MOVE WAS GREETED AS THE FIRST SERIOUS MOVE TOWARD CONTROLLING EXPLODING DEFICITS IN YEARS SHOULD UNREST SPREAD AND FORCE PUBLIC OFFICIALS INTO SPENDING MORE TO SAVE EASTERN COMPANIES OR ON NEW BENEFITS BONN COULD FIND ITSELF BACK IN A FAMILIAR BIND STUCK WITH UNRELENTINGLY HIGH INDEBTEDNESS JUST THE KIND OF INFLATIONSTOKING THREAT THAT PRODDED THE BUNDESBANK TO KEEP THE INTERESTRATE BELT TIGHT 9307300029 930730 WINNING FORMULA CORPSES BLOOD AND SEX PUT MIAMI TV STATION AT TOP OF NEWS HEAP CRITICS CRINGE AS WSVN STYLE SPREADS TO OTHER CITIES IS BOSTON NEXT ON LIST APE ATTACKS AND BOMB PLOTS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI WHEN WSVNTV LOST ITS NBC NETWORK AFFILIATION IN 1989 IT FACED A BLEAK FUTURE OF SITCOM RERUNS AND DIMINISHED EXPECTATIONS BUT MIAMI'S CHANNEL 7 CONFOUNDED CONVENTIONAL PROGRAMMING WITH A SENSATIONALIST EXPANDED NEWS FORMAT AND IT IS NOW ONE OF THE MOST SUCCESSFUL INDEPENDENT STATIONS IN THE NATION AND A TRENDSETTER FOR THE ENTIRE TELEVISION INDUSTRY ON A RECENT BALMY EVENING LOCAL VIEWERS SETTLED IN FOR WSVN'S 630 PM NEWSCAST AND SAW THE REASON WHY TWO PLANE CRASHES THREE RAPES THREE HITANDRUN ACCIDENTS TWO OF THEM FATAL A WILD MONKEY ATTACK AN ANTIGAY PROTEST IN WASHINGTON A WHITE PLOT TO BLOW UP BLACKS THE THEFT OF FAKE BREASTS POSSIBLY BY A BAND OF TRANSVESTITES CHILDREN WHO MURDERED A GRANDMOTHER A 10YEAROLD CRACK DEALER A WIFE STALKER A TRAIN ACCIDENT AND THOSE WERE JUST SOME OF THE 25 STORIES ON CHANNEL 7'S NEWS BEFORE THE FIRST COMMERCIAL BREAK WSVN'S NEWSCUMENTERTAINMENT HAS BROUGHT THE STATION PROFITS AS WELL AS NOTORIETY IN THE TV INDUSTRY WHILE SPARKING AN ONSLAUGHT OF CRITICISM NOW BOSTON IS BRACING FOR BODYCOUNT NEWS WSVN'S OWNER SUNBEAM TELEVISION CORP BOUGHT CBS AFFILIATE WHDH FOR 215 MILLION YESTERDAY ITS NEGOTIATIONS FOR THE PURCHASE HIGHLIGHTED BY A CAMPAIGN LED BY FORMER MASSACHUSETTS GOV MICHAEL DUKAKIS TO KEEP THE WSVNSTYLE NEWSCAST OUT OF BOSTON MR DUKAKIS CALLED CHANNEL 7 NEWS A COLLECTION OF THE BIZARRE TRAGIC AND BLOODY THE FACT IS MORE AND MORE LOCAL STATIONS MAY THEMSELVES BE JUST A MURDER OR TWO AWAY FROM THE WSVN APPROACH TO NEWS COMPETITION FOR VIEWERS HAS INTENSIFIED AS THE NUMBER OF TV CHANNELS GROWS AND TABLOID TECHNIQUES PRODUCE RATINGS AS SUCH SYNDICATED SHOWS AS HARD COPY HAVE LEARNED RATINGS IN TURN TRANSLATE INTO ADVERTISING DOLLARS THE WSVN PHENOMENON ISN'T JUST SHOCKING VIEWERS WITH INCREASINGLY GRAPHIC CONTENT HOWEVER IT'S ALSO OFFERING SMART PACKAGING WITH PLENTY OF GLITZ PERMITTING WSVN TO ATTACK ANOTHER PROBLEM PLAGUING THE INDUSTRY HOW TO APPEAL TO A YOUNGER GENERATION OF VIEWERS NOT GENERALLY INCLINED TO WATCH THE NIGHTLY NEWS THE FLASHY PACKAGING SAYS WSVN'S OWNER EDMUND N ANSIN IS THE KEY TO ENTERTAINING A WHOLE GENERATION OF YOUNGER VIEWERS BEING ILLSERVED BY TELEVISION NEWS HE ADDS YOU CAN'T DO IT THE WAY WALTER CRONKITE DID IT AND EXPECT TO GET YOUNGER VIEWERS MAYBE IN A PERFECT WORLD EVERYBODY WOULD BE WATCHING THE MACNEIL/LEHRER REPORT' BUT MOST PEOPLE FIND IT BORING THE FORMAT'S SUCCESS RAISES INTERESTING QUESTIONS ABOUT HOW FAR A TV STATION SHOULD GO TO ATTRACT VIEWERS AND HOW FAR VIEWERS ARE WILLING TO GO TO BE ENTERTAINED AT A TIME WHEN TELEVISED VIOLENCE GENERALLY IS UNDER ATTACK IN CONGRESS SOME IN THE TV INDUSTRY SAY THEY ARE BACKING OFF OF THE ENTIRE TABLOID GENRE SYNDICATED NEWSMAGAZINES WHICH PIONEERED THE FORMAT SUCH AS A CURRENT AFFAIR AND HARD COPY CLAIM TO BE CLEANING UP THEIR ACTS BECAUSE SOME ADVERTISERS HAVE BEEN SCARED OFF BY THE STRONG CONTENT COMMUNICATIONS CONSULTANT ROGER AILES HIMSELF A TELEVISION PRODUCER SAYS HIS TWO YEARS OF RESEARCH CLEARLY SHOWS VIEWERS ARE REACHING THE SATURATION POINT WITH THE SEX AND MURDER AND RAPE DU JOUR BUT MANY LOCAL TV STATIONS DON'T AGREE TAPES OF WSVN NEWSCASTS ARE CIRCULATING AMONG STATIONS NATIONWIDE AND SEVERAL HAVE DECIDED PARTS OR ALL OF THE FORMAT WILL WORK FOR THEM MOST NOTABLE IS THE CBS INCOWNED STATION IN CHICAGO WBBMTV WHERE FORMER VICE PRESIDENT AND GENERAL MANAGER WILLIAM APPLEGATE HIRED A NEWS DIRECTOR AND ANCHOR TEAM FROM THE MIAMI OPERATION MR APPLEGATE WHO LEFT CHICAGO IN JUNE TO RUN THE CBS STATION IN LOS ANGELES SAYS WSVN WENT TOO FAR BUT HE NONETHELESS ADDS WHAT'S GOOD ABOUT IT REGARDLESS OF CONTENT IS THAT THE PRODUCTION STYLE AND PACE EXPLOIT THE MOST POWERFUL ELEMENTS OF TELEVISION JOURNALISM FOR SEVEN HOURS DAILY MORE LOCALLY PRODUCED NEWS THAN ON ANY OTHER STATION IN THE COUNTRY WSVN RECYCLES ITS TABLEAUX OF CRIME HIGHLIGHTS BREATHLESS HOLLYWOOD GOSSIP THE REQUISITE SPORTS AND WEATHER AND ANTICASTRO EDITORIALIZING AND THEN THERE ARE SPECIAL REPORTS RECENT OFFERINGS INCLUDED SEXUAL BONDAGE AND THE YEAR 2000 END OF THE WORLD IN CASE THE CONTENT ISN'T ENOUGH TO KEEP VIEWERS TUNED IN WSVN SPICES THINGS UP WITH ITS LIGHTNING DELIVERY GRAINY REENACTMENTS IN SLOWMOTION FILM NOIR BLACKANDWHITE SHOTS ODD CAMERA ANGLES AND FLASHY COMPUTER GRAPHICS THAT SCREAM URGENT AND JUST IN ALL OF IT IS SET TO FRENETIC ELECTRONIC MUSIC CREATED BY THE STATION'S FULLTIME COMPOSER ANCHORS AND REPORTERS PLAY ALONG THE WOMEN WEAR SEQUINED CLOTHES AND BIG EARRINGS SUITABLE FOR AN EVENING GALA MEN'S TIES ARE BOLD AND BRIGHT WSVN'S COMPETITORS MOAN THAT CHANNEL 7 GIVES BROADCAST NEWS A BAD IMAGE BY PLACING A PRIORITY ON PACKAGING AND MAKING THE FACTS AN AFTERTHOUGHT ONE RIVAL ASKED TO DISTINGUISH HIS STATION FROM WSVN NOTES DRYLY WE DON'T SHOW BODIES OR LOTS OF BLOOD NEVERTHELESS ALL MIAMI STATIONS SHOW THEIR SHARE OF CRIMES INCLUDING OCCASIONAL BODIES AND BLOOD AND HEIGHTENED COMPETITION MAKES IT UNLIKELY NEWSCASTS ARE GOING TO GET ANY TAMER INCREASINGLY INDUSTRY EXECUTIVES SAY EVEN THE MAJOR BROADCAST NETWORKS ARE UNDER PRESSURE TO ADOPT THE SAME APPROACH PARTICULARLY IN THEIR NEWSMAGAZINES PROTESTS OVER SENSATIONALIST NEWSCASTS ARE TOO LITTLE TOO LATE THEY ADD MARVIN KALB A FORMER NETWORK CORRESPONDENT WHO NOW RUNS HARVARD'S SHORENSTEIN BARONE CENTER ON THE PRESS POLITICS AND PUBLIC POLICY SAYS MR DUKAKIS IS SHOUTING ABOUT A FIRE THAT STARTED MANY MANY YEARS AGO IT'S NOT GOING TO BE IGNITED BY WSVN THE MIAMI STATION'S SUCCESS INDICATES THAT VIEWERS LIKE WHAT THEY SEE WSVN HAS A HIGHER SHARE OF ITS MARKET'S VIEWERS THAN ANY OTHER INDEPENDENT IN THE COUNTRY IN MIAMI ITS NEWSCASTS ARE A SOLID NO 2 IN THE LOCAL NEWS SHOW RATINGS AND ITS 10 PM NEWS IS NO 1 AMONG ADULTS UNDER AGE 50 A RARE FEAT FOR AN INDEPENDENT ITS 10 PM NEWS FREQUENTLY BEATS THE 11 PM NEWSCASTS ON THE NETWORKAFFILIATED STATIONS AND OFTEN DRAWS EVEN MORE VIEWERS THAN THE 10 O'CLOCK ENTERTAINMENT SERIES ON ONE OR MORE OF THE LOCAL NETWORK STATIONS COMPETING IN THE NATION'S 15THLARGEST MARKET WSVN BRINGS IN TOTAL AD SALES OF ABOUT 55 MILLION A YEAR EQUAL TO THE HIGHESTBILLING NETWORK STATION IN TOWN ABC AFFILIATE WPLG IT IS PROBABLY THE MOST PROFITABLE STATION IN THE MIAMI MARKET WSVN'S TRIP INTO TABLOID TECHNIQUES AROSE RELUCTANTLY AND STATION OFFICIALS CONTEND PURELY OUT OF NECESSITY THE STATION'S OWNER MR ANSIN IS TALL THIN AND RESERVED A 57YEAROLD MASSACHUSETTSBORN FATHER OF THREE HE ATTENDED PHILLIPS ACADEMY IN ANDOVER AND THEN HARVARD UNIVERSITY BEFORE GRADUATING FROM THE WHARTON SCHOOL OF ECONOMICS REMAINS MORE BOSTON THAN MIAMI HE IS EXCEEDINGLY PRIVATE AND UNASSUMING NOT ONE TO FLAUNT HIS MULTIMILLIONDOLLAR WEALTH MOST OF WHICH HE DERIVED FROM FAMILY REALESTATE INTERESTS MR ANSIN'S FATHER BOUGHT WSVN IN 1962 AND MR ANSIN HIMSELF BECAME ITS STATION MANAGER TWO YEARS LATER WHEN HE WAS 28 FOR THE NEXT 25 YEARS HE RAN THE TELEVISION STATION AS A MODEL CITIZEN OF THE NBC NETWORK WITH A CONSERVATIVE LOCAL NEWSCAST AND A STRONG RECORD OF COMMUNITY SERVICE BUT THEN MR ANSIN WAS BACKED INTO A CORNER WHEN NBC A UNIT OF GENERAL ELECTRIC CO WANTED TO BUY THE STATION MR ANSIN REFUSED AND NBC PAID 270 MILLION FOR THE CBS RIVAL IN TOWN AND IN 1989 PULLED CHANNEL 7'S NBC AFFILIATION CBS BOUGHT AN INDEPENDENT IN THE MARKET THAT LEFT MR ANSIN WITH NO NETWORK PARTNER NO PRIMETIME LINEUP AND A NEWLY INDEPENDENT STATION THAT INSTANTLY LOST 200 MILLION IN VALUE SO MR ANSIN AND HIS TEAM STAKED WSVN'S FUTURE ON LOCAL NEWS AS MIAMI HAD NEVER SEEN IT TELEVISION STATIONS HAVE ALWAYS USED NEWS TO FORGE AN IDENTITY IN A COMMUNITY WSVN DECIDED TO DO MORE OF IT MORE AGGRESSIVELY USING CABLE NEWS NETWORK AND ALLNEWS RADIO AS ITS INSPIRATION AND AIMING FOR THE YOUNGER VIEWERS FAVORED BY ADVERTISERS MR ANSIN'S CHARGE TO HIS MANAGEMENT TEAM WAS SIMPLE COME UP WITH NEWS THAT WAS LESS INSTITUTIONAL RECALLS SUNBEAM EXECUTIVE VICE PRESIDENT ROBERT LEIDER WITHOUT A NETWORK AFFILIATION OUR NEWS HAD TO STAND OUT THE STATION'S NEWS TEAM LED BY MR LEIDER AND NEWS DIRECTOR JOEL CHEATWOOD CONDUCTED THINKTANK SESSIONS AND REVIEWED DIFFERENT GRAPHIC LOOKS THEY ADDED MUSIC MORE EMPLOYEES AND TO FILL UP AIRTIME WSVN SIGNED UP WITH A SLEW OF SATELLITE NEWS SERVICES TO GET PICTURES FROM ACROSS THE COUNTRY AND AROUND THE WORLD IT BOILS DOWN TO VIDEO AND WHAT YOU DO WITH THE VIDEO SAYS MR LEIDER IT'S HOW YOU PACKAGE IT THAT MAKES THE DIFFERENCE THEY ALSO ADDED NEW PROGRAMMING ELEMENTS FROM SIX HALFHOUR NEWSCASTS IN THE MORNING TO FEATURES ON HEALTH AND HOLLYWOOD GOSSIP TO HOLD ONTO YOUNGER VIEWERS WHEN THE HEADLINES RAN OUT TO APPEAL TO MIAMI'S LARGE HISPANIC AUDIENCE MR CHEATWOOD LAUNCHED NIGHTLY HEADLINES FROM CUBA DELIVERED BY CUBANBORN ANCHOR RICK SANCHEZ NEXT TO A LARGE RELIEF MAP OF THE ISLAND NEWS COSTS ROSE BY ALMOST 40 BUT THE STATION ALSO HAD MORE AD TIME TO SELL BECAUSE IT DIDN'T HAVE TO GIVE AD SLOTS TO A NETWORK IT SAVED MONEY BY USING NEWS IN PLACE OF MORE EXPENSIVE SYNDICATED FARE LINKING WITH NEWS CORP'S FOX NETWORK FOR LIMITED PRIMETIME PROGRAMMING ALSO HELPED DRAW YOUNG AUDIENCES MR ANSIN SAYS HE BELIEVES HIS STATION IS NOW THE MOST PROFITABLE IN TOWN BECAUSE HIS COSTS ARE LOWER THAN THE MARKET'S RATINGS LEADER WPLG WSVN'S IMPACT HASN'T BEEN LOST ON ITS LOCAL COMPETITORS ITS RIVAL NBCOWNED WTVJ ALSO HAS SEEN RATINGS GAINS BY ADOPTING HIGHIMPACT GRAPHICS AND JAZZIER MUSIC WITHOUT SACRIFICING NEWS CONTENT CONTENDS RICHARD LOBO THE STATION'S PRESIDENT AND GENERAL MANAGER AND CBS'S MR APPLEGATE DEFENDS THE FORMAT NOTING THE EMPHASIS IS ON PICTURES BECAUSE THAT IS WHAT TELEVISION NEWS IS CAN A TABLOID NEWSCAST BE SUBSTANTIVE THE ANSWER IS YES IT'S ALL IN HOW IT'S DONE IN THE YEAR THAT CHICAGO'S WBBM HAS BEEN BROADCASTING ITS NEW NEWS THE STATION SAW ITS RATINGS RISE DRAMATICALLY THE MAY RATINGS HOWEVER INDICATED A FALLOFF OBSERVERS ARE WAITING TO SEE IF THE DECLINE WAS AN ABERRATION MR APPLEGATE PROUDLY NOTES GAINS HAVE NOT BEEN MADE AT THE EXPENSE OF OTHER STATIONS INSTEAD NEW VIEWERS TUNED IN ACCORDING TO INDUSTRY DATA MR CHEATWOOD 34 AND JUST NAMED SENIOR VICE PRESIDENT IN CHARGE OF NEWS AT BOTH WSVN AND BOSTON'S WHDH SAYS HE GOES TO GREATER LENGTHS THAN OTHERS TO CAUSE PEOPLE TO WATCH WITHOUT IN MY MIND GOING TABLOID OR SLEAZY HE ADDS IF MAKING THE NEWS INTERESTING IS WRONG THEN WE'RE GUILTY THE TEST FOR WSVN AND MR ANSIN WILL BE WHETHER THEY CAN TRANSLATE THEIR SUCCESS WITH YOUNGER VIEWERS TO THE BOSTON MARKET WHERE STANDARDS ARE MORE CONSERVATIVE AND DO IT AT AN AFFILIATE OF CBS WHOSE VIEWERS ARE OLDER ON AVERAGE THAN ANY OTHER NETWORK'S WITH WHDH RUNNING A DISTANT THIRD IN THE MARKET THE NEW OWNERS SAY THEY PLAN BIG CHANGES THAT PROSPECT HAS FILLED LOCAL LEADERS WITH PANIC HARVARD HELD TWO SEMINARS ON THE WSVN NEWSCAST AND ITS POTENTIAL IMPACT ON THE CITY BOSTON LAWYER WILLIAM ABBOTT HEAD OF THE FOUNDATION TO IMPROVE TELEVISION FILED AN UNSUCCESSFUL CHALLENGE TO MR ANSIN'S PURCHASE PLANS WITH THE FEDERAL COMMUNICATIONS COMMISSION HIS PETITION INCLUDED SUCH SUBHEADINGS AS THE HARMFUL EFFECTS OF VIOLENCE IN TELEVISION NEWS PROGRAMMING BOSTON NEWSPAPERS HAVE HAD A FIELD DAY ONE HEADLINE IN THE BOSTON GLOBE LEFT MR ANSIN PARTICULARLY MIFFED CHANNEL 7 TO BE SOLD OWNER LIKES CRIME NEWS MR ANSIN AT A PRESS CONFERENCE LAST MONTH IN BOSTON SOUGHT TO DEFUSE LOCAL FEARS THAT HE WOULD IMPORT THE MIAMI STYLE INSISTING HE WILL RESPECT COMMUNITY STANDARDS HE BRISTLED AT SUGGESTIONS THAT WSVN EXPLOITS VIEWERS' FEAR POINTING OUT THAT IN THE END WSVN IS SIMPLY REPORTING THE NEWS WE DON'T MAKE AN EFFORT TO EMPHASIZE CRIME HE SAID AT THE BRIEFING UNFORTUNATELY THERE'S A LOT OF CRIME IN MIAMI 9307300028 930730 ZENECA'S PROFIT GREW 41 IN 1ST HALF OF 1993 AIDED BY COST CONTROLS SPECIAL TO THE WALL STREET JOURNAL LONDON ZENECA GROUP PLC OF BRITAIN ANNOUNCED THAT ITS ACCOUNTS SHOW PROFIT RISING 41 IN THE FIRST HALF OF 1993 HELPED BY COST CONTROL MOVES AND THE POUND'S DECLINE AGAINST KEY FOREIGN CURRENCIES THE FIGURES ARE THE FIRST FROM THE PHARMACEUTICAL GROUP SINCE IT WAS DEMERGED FROM CHEMICAL GIANT IMPERIAL CHEMICAL INDUSTRIES ON JUNE 1 FIRSTHALF PROFIT ROSE TO 367 MILLION 5487 MILLION OR 333 PENCE A SHARE COMPARED WITH 261 MILLION OR 246 PENCE A SHARE A YEAR EARLIER SALES FOR THE LATEST PERIOD ROSE 13 TO 232 BILLION FROM 206 BILLION LAST YEAR THE SIXMONTH DATA WAS IN LINE WITH PREVIOUS MARKET EXPECTATIONS FOR PROFIT OF ROUGHLY 365 MILLION THE RANGE OF FORECASTS HAD BEEN AS HIGH AS 400 MILLION AND AS LOW AS 335 MILLION ZENECA HAD ALREADY SPECIFIED IN DEMERGER DOCUMENTS THAT ITS INTERIM DIVIDEND WOULD BE 105 PENCE A SHARE MIRRORING ICI'S PAYOUT THE ACCOUNTS SHOW THAT PROFIT ATTRIBUTABLE TO SHAREHOLDERS WAS 251 MILLION COMPARED WITH 183 MILLION A YEAR BEFORE COMMENTING ON THE RESULTS ZENECA CHIEF EXECUTIVE OFFICER DAVID BARNES SAID HE WAS PLEASED TO REPORT HIGHER SALES FOR THE FIRSTHALF OF THE CURRENT YEAR BUT THAT THE OUTLOOK FOR THE REST OF THE YEAR WAS UNCERTAIN WE STILL DO NOT KNOW THE EXTENT AND NATURE OF ANY HEALTHCARE REFORMS TO BE INTRODUCED IN THE US NOR IS IT YET POSSIBLE TO PREDICT THE LONGTERM CONSEQUENCES OF THE EXTRAORDINARY WET WEATHER IN THE MIDWEST AND HOW THAT MAY AFFECT FUTURE DEMAND FOR AGROCHEMICALS AND SEEDS HE SAID IN A STATEMENT BARNES ADDED THAT EUROPEAN ECONOMIES WERE UNLIKELY TO IMPROVE IN THE SHORT TERM ZENECA'S PHARMACEUTICALS DIVISION LED SALES AND PROFIT HIGHER SALES ROSE 22 TO 924 MILLION IN THE FIRSTHALF OF THE CURRENT FINANCIAL YEAR AND TRADING PROFIT FROM DRUGS COMPRISED 64 OF THE GROUP'S OVERALL TRADING PROFIT 9307300027 930730 CREDIT MARKETS BOND PRICES SOAR AFTER REPORT OF WEAK GROWTH IN ECONOMY CATCHES WALL STREET BY SURPRISE BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOND PRICES SOARED YESTERDAY IN A RALLY SPARKED BY A WEAKERTHANEXPECTED ECONOMIC REPORT THAT CAUGHT WALL STREET BY SURPRISE THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1 1/4 POINTS OR NEARLY 1250 FOR A BOND WITH A 1000 FACE VALUE TO 107 6/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE FELL TO 657 FROM 665 ON WEDNESDAY EARLY IN THE DAY THE COMMERCE DEPARTMENT REPORTED THAT GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES MADE IN THE US ROSE AT A SLUGGISH 16 ANNUAL RATE DURING THE SECOND QUARTER FAR BELOW FORECASTS FOR A 25 PACE A SEPARATE REPORT WHICH SHOWED A JUMP OF NEARLY 43000 IN INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FOR THE WEEK ENDED JULY 24 ALSO HELPED SPUR THE RALLY BOND INVESTORS OFTEN WELCOME NEGATIVE ECONOMIC NEWS BECAUSE THEY FEAR THAT GROWING ECONOMIC STRENGTH WILL RESULT IN HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN TREASURY PRICES BEGAN TO RISE SHORTLY AFTER THE REPORTS WERE RELEASED BUT THE RALLY GAINED STRENGTH BECAUSE MANY WALL STREET FIRMS HAD BEEN BETTING AGAINST FURTHER YIELD DROPS THE GDP NUMBER WAS CERTAINLY THE CATALYST BUT CLEARLY THE MARKET WAS CAUGHT IN SHORT POSITIONS SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC THE GDP REPORT CALLS INTO QUESTION ALL SORTS OF ECONOMIC FORECASTS FOR THE THIRD AND FOURTH QUARTERS SAID MR FINE ACCORDING TO MR FINE AND OTHERS ON WALL STREET A NUMBER OF SECURITIES DEALERS WERE IN SOCALLED SHORT POSITIONS IN WHICH THEY HAD SOLD BORROWED SECURITIES IN HOPES OF BUYING THEM BACK AT LOWER PRICES AND POCKETING THE DIFFERENCE BUT AS PRICES ROSE IN RESPONSE TO THE GDP REPORT THESE DEALERS WERE FORCED TO COVER THESE SHORTS BY GOING BACK INTO THE MARKET AND BUYING BACK THE SECURITIES THEY HAD SOLD IN ORDER TO REPLACE THEM BEFORE LOSSES MOUNTED FURTHER ACCORDING TO OTHER GOVERNMENT DEALERS THE WAVE OF DEMAND FROM INVESTORS FOR TREASURY SECURITIES ALSO CAUGHT DEALERS WITH FEW SECURITIES IN THEIR INVENTORIES IN THE WAKE OF GOVERNMENT AUCTIONS OF TWOYEAR NOTES AND FIVEYEAR NOTES MANY OF THESE DEALERS HAD CLEANED OUT THEIR INVENTORIES IN EXPECTATION OF WEAK DEMAND FOR THE BALANCE OF THE WEEK WHEN THE GDP REPORT HIT THE WIRES HOWEVER THESE DEALERS WERE FORCED TO BUY SECURITIES FOR THEIR CUSTOMERS IN THE OPEN MARKET RATHER THAN TAKE THEM FROM THEIR INVENTORIES BY BEING FORCED TO BUY SECURITIES THIS WAY DEALERS HELPED TO FUEL THE BOND RALLY WHILE LOSING POTENTIAL PROFITS ON BOND SALES THAT WOULD NORMALLY HAVE COME WITH LARGER COMMISSIONS INVESTORS WERE FURTHER REASSURED BY A WASHINGTON POST STORY STATING THAT THE FEDERAL RESERVE HASN'T RULED OUT CUTTING SHORTTERM INTEREST RATES IF THE ECONOMY FALTERS AND INFLATION REMAINS LOW THAT HELPED SOOTHE CONCERNS THAT A MOVE BY THE FED TO RAISE INTEREST RATES COULD COME AT ANY MOMENT TRADERS SAID PEOPLE ARE AT EASE NOW THAT A TIGHTENING ISN'T AROUND THE CORNER AND WE'VE GOT EVIDENCE THAT THE ECONOMY HAS LOST MOMENTUM SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO MOST ECONOMISTS ON WALL STREET HOWEVER DO NOT BELIEVE THAT THE FED IS ANYWHERE NEAR MAKING A MOVE TO RAISE SHORTTERM INTEREST RATES DEALERS NOTED THAT THE TREASURY MARKET WAS ABLE TO BRUSH OFF SEVERAL NEGATIVE FACTORS YESTERDAY FOR INSTANCE GOLD PRICES WHICH HAD SPARKED INFLATION CONCERNS IN RECENT WEEKS SURGED ABOVE 400 AN OUNCE OIL PRICES WERE ALSO SHARPLY HIGHER THINGS THAT WOULD HAVE BOTHERED THE MARKET A COUPLE OF DAYS AGO WERE BEING IGNORED NOTED JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC THAT WAS REFLECTIVE OF THE SWIFT TURNAROUND IN SENTIMENT THAT THE MARKET HAS UNDERGONE THIS WEEK SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS IT'S A STRONG INDICATION OF THE GOOD MOOD THE MARKET IS IN HE SAID THERE'S BEEN A SEA CHANGE IN PSYCHOLOGY YESTERDAY'S RALLY ALMOST COMPLETELY ERASED THE DAMAGE DONE TO THE LONG END OVER THE PAST TWO WEEKS THAT SELLOFF HAD DRIVEN THE YIELD ON THE BOND UP TO NEARLY 670 FROM A 16YEAR LOW OF 654 ACCORDING TO DEALERS MANY TRADERS WERE SURPRISED THAT THE GDP FIGURE WAS SO LOW ESPECIALLY AFTER FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TESTIFIED LAST WEEK THAT HE BELIEVED THE GDP PACE WOULD BE CLOSER TO 25 BUT THE FED'S GDP ESTIMATE AND THE ACTUAL RESULT ISSUED BY THE COMMERCE DEPARTMENT CAN DIFFER WIDELY BECAUSE DATA ON INVENTORIES ARE SKIMPY WHICH FORCES FORECASTERS TO MAKE ESTIMATES THAT CAN DIFFER WIDELY APPARENTLY THE FED'S BEST ESTIMATE ON INVENTORIES SHOWED MORE GROWTH IN THE SECOND QUARTER THAN THE COMMERCE DEPARTMENT'S RESULT ACCORDING TO J PATRICK ROTHSTEIN A SENIOR MANAGING DIRECTOR AT BEAR STEARNS & CO THE SALE OF MORTGAGEBACKED SECURITIES ALSO BOOSTED THE TREASURY MARKET THE TREASURY MARKET IS BEING DRIVEN IN GOOD PART FROM THE MORTGAGEBACKED MARKET HE SAID WITH INTEREST RATES DROPPING HOMEOWNERS ARE RUSHING OUT TO REFINANCE THE MORTGAGES UNDERLYING THESE SECURITIES WHEN THESE MORTGAGES ARE REFINANCED THE SECURITIES ARE CALLED EARLIER THAN INVESTORS HAD EXPECTED THE MORTGAGE BANKERS ASSOCIATION'S WEEKLY INDEX OF MORTGAGE LOAN ACTIVITY SHOWED AN INCREASE IN THE REFINANCING INDEX TO A VERY HIGH 14062 IN THE WEEK ENDED JULY 23 FROM A REVISED 12268 IN THE PREVIOUS WEEK INVESTORS WHO FEAR THAT THEIR MORTGAGEBACKED SECURITIES ARE TO BE CALLED SOON OR WHO HAVE ALREADY SEEN THEIR HOLDINGS CALLED AWAY RUSHED TO PARK THEIR CASH IN THE TREASURY MARKET YESTERDAY BUYING BY THESE INVESTORS HAD ITS GREATEST EFFECT ON TREASURY SECURITIES MATURING IN SEVEN TO 10 YEARS THE 10YEAR NOTE FOR EXAMPLE ROSE NEARLY 5/8 POINT TO 103 9/32 WHILE ITS YIELD PLUNGED TO 579 FROM 587 ON WEDNESDAY MEANWHILE ACCORDING TO US TREASURY DEPARTMENT OFFICIALS DARCY BRADBURY NEW YORK CITY'S DEPUTY COMPTROLLER FOR DEBT MANAGEMENT IS EXPECTED TO BE APPOINTED TO THE POST OF DEPUTY ASSISTANT SECRETARY IN CHARGE OF FEDERAL BORROWING THE POST HAS BEEN EMPTY SINCE EARLIER THIS YEAR WHEN DEBORAH DANKER LEFT THE POST TO RETURN TO A POSITION WITH THE FEDERAL RESERVE THE POSITION IS AN IMPORTANT ONE FOR THE TREASURY MARKET BECAUSE THE HOLDER ACTS AS A LIAISON BETWEEN WALL STREET TREASURY DEALERS AND THE TREASURY DEPARTMENT AND HELPS TO SET BORROWING POLICIES NEW ISSUANCE WAS SURPRISINGLY LIGHT AS FEW COMPANIES MOVED TO TAKE ADVANTAGE OF FALLING INTEREST RATES ONLY 565 MILLION OF NEW CORPORATE DEBT WAS OFFERED INCLUDING A 300 MILLION OFFERING BY ASSOCIATES CORP OF NORTH AMERICA A UNIT OF FORD MOTOR CO IN SECONDARY TRADING PRICES OF INVESTMENTGRADE ISSUES AND JUNK ISSUES MOVED HIGHER IN TANDEM WITH TREASURYS KEEPING YIELD SPREADS STABLE ASSOCIATES CORP SOLD 300 MILLION OF THREEYEAR NOTES THE NONCALLABLE NOTES WERE PRICED AT 99892 TO YIELD 479 A MARGIN OF 040 PERCENTAGE POINT OVER THE YIELD OF THE TREASURY'S THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CHASE MANHATTAN CORP SOLD 100 MILLION OF 10YEAR FLOATINGRATE NOTES THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE NONCALLABLE ISSUE WAS PRICED AT PAR AND WILL FLOAT QUARTERLY AT THE THREEMONTH LONDON INTERBANK OFFERED RATE THE THREEMONTH LIBOR IS PRESENTLY 33125 THE NOTES HAVE A FLOOR OF 45 AND NO CAP RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE NOTES WILL PAY INTEREST QUARTERLY BUYERS SNAPPED UP MUNICIPAL BONDS LIFTING PRICES OF ACTIVELY TRADED ISSUES BY 3/8 TO 5/8 POINT IN SECONDARY TRADING THE MATAGORDA COUNTY TEXAS NAVIGATION DISTRICT NO 1 6 POLLUTION CONTROL REVENUE REFUNDING BONDS OF 2028 ENDED 5/8 HIGHER AT 99 5/8 TO YIELD 602 THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S 550 SERIES A REFUNDING BONDS OF 2022 FINISHED 5/8 HIGHER AT 97 TO YIELD 570 THE MUNICIPAL MARKET'S FORTUNES APPEAR TO BE IMPROVING AFTER HEAVY SALES IN THE LAST FEW WEEKS MUNIS WERE DUMPED BECAUSE ISSUERS FLOODED THE MARKET WITH SECURITIES FASTER THAN THEY COULD BE FULLY DIGESTED CAUSING AN OVERLOAD THE LEVEL OF DEMAND SHOULD BECOME MUCH CLEARER NEXT WEEK WHEN MORE THAN 3 BILLION OF TAXEXEMPTS WILL PROBABLY COME TO MARKET IN PRIMARY ACTION YESTERDAY THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY'S 100 MILLION ISSUE OF PUBLIC SCHOOLS SMALL PROJECT LOAN PROGRAM BONDS WAS WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 50397 YIELDS RANGE FROM 350 IN 1995 TO 540 IN 201113 MOODY'S INVESTORS SERVICE INC HAS RATED THE ISSUE DOUBLEA1 AND STANDARD & POOR'S CORP HAS ASSIGNED A TRIPLEA RATING PRICES OF MORTGAGE SECURITIES FOLLOWED TREASURYS HIGHER POSTING GAINS OF NEARLY 1/2 POINT HOWEVER THE SURPRISINGLY BIG RISE IN THE MORTGAGE BANKERS ASSOCIATION'S REFINANCING INDEX HAS PREPAYMENT CONCERNS LOOMING IN THE BACKGROUND AMONG 65 ISSUES FOR AUGUST DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 15/32 HIGHER AT 99 17/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED 14/32 HIGHER AT 99 19/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 14/32 HIGHER AT 99 16/32 HIGHERCOUPON SECURITIES ROSE LESS ANYWHERE FROM 1/32 TO ABOUT 3/8 POINT AMID CONCERNS THAT THE MORTGAGE MARKET HASN'T SEEN THE LAST OF RAPID EARLY PREPAYMENTS IN THE PRIMARY MARKET 13 BILLION OF ISSUES VIA TWO FANNIE MAE REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS WERE ANNOUNCED BOTH WERE BACKED BY STRIPPED FANNIE MAE MORTGAGE SECURITIES WHICH IN TURN WERE COLLATERALIZED WITH THE AGENCY'S 7 MORTGAGE SECURITIES STRIPPED SECURITIES ARE ISSUES SEPARATED INTO PRINCIPALONLY AND INTERESTONLY SECURITIES ALSO A FREDDIE MAC REMIC WAS INCREASED TO 350 MILLION FROM 200 MILLION THAT DEAL WAS BACKED BY FREDDIE MAC STRIPS IN TURN BACKED BY THE AGENCY'S 8 MORTGAGE SECURITIES THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9307300026 930730 BUSINESS BRIEF COMPUTERVISION CORP SECONDPERIOD LOSS SHRANK AS REVENUE DECLINED 26 COMPUTERVISION CORP CITING THE SLUGGISH EUROPEAN AND JAPANESE ECONOMIES POSTED A NARROWER SECONDQUARTER LOSS ON A 26 REVENUE DECLINE THE BEDFORD MASS MAKER OF COMPUTER HARDWARE AND SOFTWARE SAID THE SECONDQUARTER LOSS WAS 88 MILLION OR 18 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 1165 MILLION OR 453 A SHARE INCLUDING A LOSS OF 1006 MILLION FROM DISCONTINUED OPERATIONS REVENUE FELL TO 2169 MILLION FROM 2915 MILLION ROBERT HERWICK AN ANALYST WITH HAMBRECHT & QUIST SAID COMPUTERVISION'S REVENUE WAS ABOUT 10 MILLION LOWER THAN ANALYSTS' ESTIMATES BECAUSE OF LOWER SOFTWARE SALES THE SHORTFALL HOWEVER STEMMED MAINLY FROM THE POOR EUROPEAN ECONOMY AND WAS OVERWHELMINGLY DUE TO ECONOMIC RATHER THAN PRODUCT FACTORS HE SAID IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY COMPUTERVISION STOCK ROSE 125 CENTS OR 38 TO CLOSE AT 3375 A SHARE 9307300025 930730 ENTERPRISE AS BIG FIRMS FARM OUT MAXSERV SCOOPS UP NEW PACTS CALLCENTER OPERATION WANTS CORPORATE AMERICA'S QUESTIONING CUSTOMERS BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS LIKE MANY SMALL COMPANIES THESE DAYS MAXSERV INC HAS TIED ITS FUTURE TO BIG BUSINESS'S RISING DESIRE TO FARM OUT MORE AND MORE INTERNAL WORK IN ITS LATEST VENTURE MAXSERV IS GAMBLING THAT BIG COMPANIES WILL TAKE A SCARY NEW STEP TRUSTING THEIR CUSTOMERS TO OUTSIDERS FOR YEARS THE SMALL INFORMATIONSERVICES CONCERN ANSWERED COMPLICATED QUERIES FROM SEARS ROEBUCK & CO'S FARFLUNG ARMY OF REPAIR TECHNICIANS THEN MAXSERV TOOK ON CONSUMERS' CALLS ABOUT SEARS'S APPLIANCES NOW THE 12YEAROLD FIRM IS TRYING TO PROFIT FROM ITS SEARS EXPERTISE WITH AN EXPANSION PLAN FINANCED BY THE RETAILING GIANT'S RECENT PURCHASE OF A MINORITY STAKE IN MAXSERV AS PART OF THE EXPANSION MAXSERV ADDED FRIGIDAIRE CO AS A CLIENT FIELDING CUSTOMER INQUIRIES ABOUT APPLIANCE REPAIRS MAXSERV IS EXPECTED TO SIGN SIMILAR DEALS SOON WITH FOUR OTHER RETAILERS AND MANUFACTURERS BUT ENTREPRENEURS EAGER TO HANDLE QUESTIONS FROM CORPORATE AMERICA'S CUSTOMERS FACE A DELICATE CHALLENGE MANY BIG COMPANIES STILL REFUSE TO TRUST OUTSIDERS WITH THAT RELATIONSHIP WHIRLPOOL CORP GENERAL ELECTRIC CO AND SEVERAL OTHER APPLIANCE MAKERS ALL FIELD CUSTOMER CALLS THEMSELVES AND RESIST RELINQUISHING THAT ROLE IF YOU'RE PART OF THE MAYTAG CORPORATION THE MOST IMPORTANT ASSET WE HAVE IS OUR CUSTOMER BASE EXPLAINS NELSON E WOOLDRIDGE PRESIDENT OF MAYCOR APPLIANCE PARTS & SERVICE A MAYTAG CORP UNIT WE JUST DON'T WANT TO ENTRUST THAT CUSTOMER BASE WE HAVE BUILT UP FOR 99 YEARS TO ANYONE ELSE YET FRIGIDAIRE A UNIT OF SWEDEN'S AB ELECTROLUX IS PERFECTLY COMFORTABLE ASSIGNING CONSUMERS' REPAIR QUESTIONS TO AN OUTSIDER IN FACT FRIGIDAIRE'S GENERAL CUSTOMER INQUIRIES HAVE LONG BEEN HANDLED BY RUPPMAN MARKETING TECHNOLOGIES INC A SMALL CALLCENTER IN PEORIA ILL WHEN FRIGIDAIRE BEGAN A NEW REPAIR HOTLINE IN NOVEMBER IT HIRED MAXSERV RATHER THAN DEVOTE THE TIME AND EXPENSE TO CREATING ITS OWN REPAIR CALLCENTER WHY INVENT THE WHEEL WHEN THE WHEEL IS ALREADY THERE ASKS WILLIAM HILL FRIGIDAIRE'S DIRECTOR OF SERVICE SUPPORT MAXSERV OFFICIALS SHARE HIS VIEW THEY NOTE THAT THEIR COMPANY SPENT YEARS COMPILING A COMPUTERIZED DATABASE OF COMMON PROBLEMS AND CURES FOR MORE THAN 400 BRANDS OF HOME APPLIANCES ELECTRONICS EQUIPMENT FITNESS GEAR AND LAWN AND GARDEN MACHINERY EACH OF THE COMPANY'S 165 PHONEANSWERING AUTHORITIES BOASTS SEVERAL YEARS OF REPAIR EXPERIENCE MAXSERV EXECUTIVES SAY THIS COMBINATION OF KNOWLEDGE AND EXPERIENCE SHOULD HELP TO OVERCOME APPLIANCEMAKERS' JITTERS MAXSERV'S PRESIDENT AND CHIEF EXECUTIVE CHARLES BAYLESS ENVISIONS THE COMPANY'S BECOMING ALMOST A UTILITY TO THE INDUSTRY BY DELIVERING APPLIANCEREPAIR INFORMATION IN A VARIETY OF WAYS FOR RETAILERS MANUFACTURERS AND INDEPENDENT SERVICE SHOPS MAXSERV GOT ITS START IN 1981 BY SUPPLYING INDEPENDENT AND RETAILEROWNED REPAIR SHOPS WITH TROUBLESHOOTING ADVICE ABOUT A STRANGE NEW HOUSEHOLD APPLIANCE CALLED THE VCR THE COMPANY THEN NAMED PRIMEFAX SOON EXPANDED INTO PROVIDING HELP WITH TELEVISION SETS AND OTHER EQUIPMENT AT ABOUT THAT TIME SEARS BEGAN SELLING A FULL RANGE OF NAMEBRAND APPLIANCES AND HOUSEHOLD EQUIPMENT IN ADDITION TO ITS INHOUSE BRANDS SEARS EMPLOYED MAXSERV TO KEEP ITS 17000MEMBER REPAIR FORCE ABREAST OF THE LATEST PRODUCT INFORMATION THE RETAIL GIANT TURNED TO MAXSERV AGAIN IN 1990 WHEN IT DECIDED TO OFFER REPAIR ADVICE TO INDIVIDUAL CONSUMERS CALLERS PAY 1199 PER INQUIRY UNLESS THEIR APPLIANCES ARE UNDER WARRANTY OR AN EXTENDED SERVICE CONTRACT DURING A RECENT MORNING IN AUSTIN MOVERS HAUL IN FURNITURE FOR MAXSERV'S RAPIDLY GROWING STAFF TOTAL EMPLOYMENT HAS SOARED TO 400 FROM 80 AT THE END OF 1991 MEANWHILE ABOUT 24 TECHNICIANS FIELD CALLS SITTING BEFORE PERSONAL COMPUTERS IN ONE OF THE FIRM'S TWO CALLCENTERS ELAINE IN SHEBOYGAN WIS WONDERS WHETHER A BROILER PAN WILL BE SAFE IN HER OVEN DURING SELFCLEANING THE ANSWER IS NO BETSY IN BELMONT OHIO COMPLAINS THAT THE FANCONTROL KNOB ON HER NEW AIR CONDITIONER WON'T TURN TO THE LOW SETTING THE COMPANY SAYS IT EXPECTS TO HANDLE ABOUT TWO MILLION SUCH CALLS IN 1993 UP FROM 873000 LAST YEAR NOW MAXSERV IS LOOKING FOR NEW MARKETS BY REPACKAGING ITS EXISTING RESOURCES IN MAY IT LINED UP AGREEMENTS WITH AMANA GE SEARS AND WHIRLPOOL TO DEVELOP AN ELECTRONICPARTS CATALOG THAT WOULD REPLACE UNWIELDY MICROFICHES AND CATALOGS USED BY SUPPLIERS AND REPAIR SHOPS MAXSERV IS CONVERTING PARTS INFORMATION FROM THOSE MANUFACTURERS INTO DIGITAL FORM TO BE STORED ON CD ROM CD ROM TECHNOLOGY ALLOWS LARGE AMOUNTS OF DATA TO BE PLACED ON A DISK SIMILAR TO AN AUDIO COMPACT DISK SLUGGISH PROFIT SO FAR MAXSERV'S RECENT GROWTH HAS PAID OFF HANDSOMELY IN REVENUE BUT NOT IN PROFIT REVENUE IN FISCAL 1992 ENDED MAY 31 TOTALED 38 MILLION UP FROM 25 MILLION A YEAR EARLIER BUT THE COMPANY EARNED ONLY 11000 IN FISCAL 1992 COMPARED WITH 343000 IN 1991 MAXSERV ATTRIBUTES THE DECLINE LARGELY TO THE COST OF HIRING MORE TOP EXECUTIVES AND INSTALLING NEW COMPUTER SYSTEMS OFFICIALS SAY THEY EXPECT TO REPORT SIGNIFICANT EARNINGS GAINS FOR FISCAL 1993 WITH PROFIT LEVELS SIMILAR TO THOSE IN 1991 THE COMPANY IS COUNTING ON SEARS'S MAY PURCHASE OF 29 MILLION MAXSERV SHARES REPRESENTING ABOUT A 36 STAKE TO HELP FINANCE ITS CONTINUED EXPANSION ONLY 950000 OF SEARS'S 4 MILLION INVESTMENT WAS IN CASH MAXSERV SAYS IT ALSO RECEIVED A NEW SEVENYEAR SERVICE AGREEMENT PARTS AND SERVICE CATALOGS AND SECONDHAND OFFICE FURNITURE FOR THE SMALL FIRM'S EXPANDING TELEPHONE BANKS SEARS HAD DISCARDED THE FURNITURE AFTER SHRINKING ITS CORPORATE STAFF 9307300024 930730 BUSINESS BRIEF MERIDIAN DIAGNOSTICS INC FIRM WITHDRAWS STOCK SALE CITING UNSETTLED' CONDITIONS MERIDIAN DIAGNOSTICS INC CINCINNATI WITHDREW ITS PROPOSED SALE OF TWO MILLION SHARES OF COMMON STOCK CITING UNSETTLED MARKET CONDITIONS AFFECTING HEALTH CARE COMPANIES THE MAKER OF MEDICAL DIAGNOSTIC TESTS HAD HOPED TO RAISE ABOUT 20 MILLION FROM THE OFFERING BUT THE STOCK'S PRICE HAD TUMBLED FROM ABOUT 1050 A SHARE IN EARLY JUNE TO ITS OPENING OF 8375 YESTERDAY IN YESTERDAY'S NATIONAL OVERTHECOUNTER TRADING THE STOCK CLOSED AT 9625 UP 125 OR 15 MERIDIAN HAD PLANNED TO USE THE PROCEEDS TO UPGRADE ITS CORPORATE HEADQUARTERS AND TO RETIRE SHORTTERM DEBT INCURRED IN ITS MIDJUNE ACQUISITION OF SOME INFECTIOUSMONONUCLEOSIS TESTING LINES FROM JOHNSON & JOHNSON THE PRICE OF THE ACQUISITION WAS 31 MILLION PLUS SOME ADDITIONAL PAYMENTS FOR INVENTORY ABOUT ONE MILLION OF THE SHARES TO BE SOLD IN THE OFFERING WERE HELD BY SHAREHOLDERS INCLUDING THE FOUNDERS 9307300023 930730 BUSINESS & RACE BY LEON S WYNTER CONFLICTING VISIONS OF RACE RELATIONS IN JAPAN ARE ILLUMINATED BY A NEW DOCUMENTARY STRUGGLE & SUCCESS THE AFRICANAMERICAN EXPERIENCE IN JAPAN SHOWS THE JAPAN WHERE CHILDREN CHERISH GROTESQUE SAMBO DOLLS BLACKFACE BUFFOONERY IS A TELEVISION STAPLE AND POLITICIANS MAKE OVERTLY RACIST COMMENTS BUT IT ALSO SHOWS ANOTHER SIDE THROUGH THE EYES OF BLACK PROFESSIONALS AND ENTREPRENEURS SOME WITH JAPANESE SPOUSES THEY SPEAK OF JAPAN'S APPRECIATION OF BLACK POPULAR CULTURE AND RESPECT FOR PEOPLE OF ANY COLOR WHO PROVE THEMSELVES IN BUSINESS AND THEY SAY THEIR ADOPTED HOME HAS NO RACETINGED CRIME OR OPEN CLASS CONFLICTS AS A RESULT JAPAN OFFERS YOU A FORM OF PSYCHIC FREEDOM YOU DON'T HAVE TO TALK ABOUT RACE ON A DAILY BASIS SAYS CBS TELEVISION REPORTER BILL WHITTAKER INTERVIEWED FOR THE FILM DURING A TOKYO POSTING IN THE FILM MR WHITTAKER RECALLS AN INSTANCE OF HOUSING DISCRIMINATION BUT NOTES P BAI ARKRIDGE A BLACK IBM EXECUTIVE WHO WORKED IN JAPAN FOR THREE YEARS MOST AFRICAN AMERICANS GROW UP EXPECTING HOUSING DISCRIMINATION IN THE US WHAT MR ARKRIDGE DIDN'T EXPECT WAS THE WAY JAPANESE PEOPLE ACCEPTED HIS AUTHORITY THE INSTANT HE DISPLAYED HIS BUSINESS CARD HE SAYS THAT DOESN'T ALWAYS HAPPEN IN THE US REGGE LIFE A LOS ANGELESBASED DOCUMENTARY FILMMAKER WHO DIRECTED AND PRODUCED THE FILM CREDITS JAPANESE RESPECT FOR MAJIME OR SERIOUSNESS OF PURPOSE FOR BLACKS' REPORTS OF PERSONAL VALIDATION IN ONE OF THE MOST COMPETITIVE SOCIETIES ON EARTH MR LIFE SAYS HIS LEARNED MAJIME ATTITUDE HELPED HIM SECURE 200000 IN FUNDING FROM JAPANESE SOURCES TO MAKE THE FILM IT HAS HAD TWO HIGHLY WATCHED AIRINGS ON JAPANESE TELEVISION MR LIFE HOPES IT WILL MAKE ITS US TV DEBUT BY THIS FALL WHITE FLIGHT CAN YIELD UNEXPECTED LESSONS ON HOW AND WHERE TO GROW A BUSINESS WHEN KARIN JURICK'S FATHER BOUGHT A GREAT FRAME UP FRANCHISE IN 1979 IN DEKALB COUNTY OUTSIDE ATLANTA THE COUNTY WAS 14 BLACK IN THE 1980S THE JURICKS BOUGHT A SECOND STORE IN THE CHAIN IN ADJACENT GWINNETT COUNTY WITH A BURGEONING WHITE SUBURBAN POPULATION BY 1990 DEKALB COUNTY WAS 42 BLACK AND CLIMBING BUT WHEN MS JURICK HAD TO SELL ONE STORE AFTER HER FATHER'S DEATH THAT YEAR SHE DECIDED TO KEEP THE DEKALB STORE AND ITS 60 BLACK CLIENTELE WHY MS JURICK WHO IS WHITE SAYS SHE LOVES THE WIDE RANGE OF BLACK AND CONTEMPORARY ART AND THE CREATIVE FRAMING STYLES SHE LEARNED TO SELL TO SATISFY DEKALB'S BLACK MIDDLECLASS CLIENTELE IN GWINNETT COUNTY SHE SAYS IT WAS PEOPLE MOVING INTO THE SAME KIND OF HOUSES BUYING THE SAME KIND OF ART AND FRAMING IT THE SAME WAY WE COULDN'T KEEP ENOUGH BLUE AND MAUVE MAT BOARDS OUT THERE SOME NEIGHBORING SHOPS HAVE LEFT ALONG WITH THE WHITE HOMEOWNERS BUT MS JURICK DECIDED IN MAY TO RENEW HER LEASE AND IMPROVE HER STORE MANY BUSINESSES WERE PESSIMISTIC AND DIDN'T BELIEVE THE BUYING POWER IN THE BLACK COMMUNITY SHE SAYS I THINK THEY'RE WRONG I SIMPLY CAN'T JUSTIFY MOVING MS JURICK'S EXPERIENCE HAS SPURRED THE PARENT COMPANY BASED IN FRANKLIN PARK ILL TO RECONSIDER THE FORMULA IT USED TO GROW TO 130 STORES FOR YEARS THE COMPANY SIMPLY REPLICATED ITS SUCCESS BY OPENING STORES IN AFFLUENT WHITE SUBURBS STEVE BELLEW EXECUTIVE VICE PRESIDENT SAYS THE FIRM PLANS TO DOUBLE ITS GROWTH RATE TO 25 STORES A YEAR NEXT YEAR EXPANDING AT THAT RATE WILL MEAN INCLUDING A LOT OF THESE MINORITY COMMUNITIES THAT WE HAVEN'T GOTTEN TO VERY WELL MR BELLEW SAYS DRAMATIC ATTEMPTS TO ENTER THE US BY ILLEGAL ALIENS FROM CHINA BRING A CALL FOR EASING IMMIGRATION POLICY TOWARD ASIANS STANFORD LAW SCHOOL PROFESSOR WILLIAM HING ARGUES FOR SUCH A MOVE BECAUSE OF PRIOR DISCRIMINATION AND STRONG DEMAND TO ENTER THE US FROM ASIA IN A NEW BOOK HE NOTES THAT US IMMIGRATION LAW HAD ITS ORIGINS LARGELY IN LIMITING CHINESE AND OTHER ASIANS UNDER A SERIES OF ACTS FROM 1870 TO 1904 ONLY 155000 ASIANS ENTERED THE US FROM 1900 TO 1910 WHEN OVER EIGHT MILLION MOSTLY EUROPEAN IMMIGRANTS CAME IN IN 1965 WITH ASIANS MAKING UP LESS THAN 05 OF THE US POPULATION CONGRESS REVISED THE LAW TO ALLOW A MAXIMUM OF 20000 VISAS ANNUALLY PER NATION UNDER A COMPLEX FORMULA THAT FAVORED IMMIGRANTS WITH CLOSE US FAMILY TIES LAWMAKERS THOUGHT THE RULES WOULD BRING MOSTLY EUROPEANS BUT SKILLED AND EDUCATED ASIANS FILLED OTHER SLOTS RESERVED FOR DESIRABLE WORKERS QUICKLY BECAME CITIZENS AND SPONSORED RELATIVES ASIANS NOW ACCOUNT FOR 40 OF US IMMIGRATION MR HING SAYS BUT THE CURRENT SYSTEM DOESN'T REDRESS THE DECADES OF EXCLUSION OR MEET PENTUP DEMAND FOR VISAS THE WAITING LIST FOR RELATIVES CAN EXCEED 10 YEARS MR HING SAYS HIS MOTHER DIED IN THE 1970S STILL WAITING FOR A SIBLING TO JOIN HER HERE BUT IRA MEHLMAN A SPOKESMAN FOR THE FEDERATION FOR AMERICAN IMMIGRATION REFORM A GROUP LOBBYING TO SLASH US IMMIGRATION ARGUES AGAINST USING POLICY TO REDRESS HISTORY WE SHOULDN'T BE LOOKING AT RACE OR ETHNICITY WE SHOULD BE LOOKING AT NUMBERS AND THEN AWARD VISAS BASED ON WHAT IMMIGRANTS CAN CONTRIBUTE TO AMERICA HE SAYS REVENUE OF HISPANICOWNED BUSINESSES IN THE US GREW 2 TO A RECORD 10 BILLION IN 1992 ACCORDING TO HISPANIC BUSINESS MAGAZINE'S ANNUAL RANKING OF THE TOP 500 COMPANIES DESPITE THE LOSS OF PERENNIAL NO 1 BACARDI AND PIZZA MANAGEMENT A FASTFOOD FRANCHISEE THAT WAS NO 7 IN 1991 BACARDI'S OWNERSHIP MOVED OFFSHORE LAST YEAR WHILE PIZZA MANAGEMENT WAS SOLD BACK TO FRANCHISER PEPSICO THE DALLAS TOGETHER FORUM A GROUP OF BUSINESS AND PROFESSIONAL LEADERS SAYS 36 COMPANIES BASED IN THE DALLAS AREA HAVE PLEDGED TO INCREASE MINORITY HIRING AND DO MORE BUSINESS WITH MINORITYOWNED COMPANIES PARTICIPATING BUSINESSES INCLUDING AMR AND JC PENNEY WILL PUBLISH THEIR RESULTS STARTING NEXT SPRING 9307300022 930730 READY CREDIT HEAD OF BROOKE GROUP DRAWS ON ITS COFFERS TO TUNE OF MILLIONS LBO ARTIST BENNETT LEBOW 60 OWNER GETS LOANS AND SELLS ASSETS TO FIRM PUBLIC COMPANY UNDER STRESS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL FROM A LOOK AT THE LIFESTYLE OF BENNETT S LEBOW IT ISN'T IMMEDIATELY OBVIOUS THAT HIS COMPANY'S VERY SURVIVAL IS THREATENED MR LEBOW IS CHAIRMAN AND THE 60 OWNER OF BROOKE GROUP LTD OF MIAMI A NEW YORK STOCK EXCHANGE COMPANY THAT SPANS A POLYGLOT EMPIRE OF LIGGETT CIGARETTES COMPUTER SOFTWARE A HELICOPTER MAINTENANCE BUSINESS AND A SELLER OF SPORTS TRADING CARDS A CHUBBY BEARDED 55YEAROLD MR LEBOW JETS BETWEEN MULTIMILLIONDOLLAR HOUSES IN SADDLE RIVER NJ AND FISHER ISLAND FLA HE REGULARLY FLIES OFF TO RUSSIA TO WORK ON BROOKE'S VENTURES THERE INCLUDING A MOSCOW OFFICE BUILDING IN OTHER WORDS MR LEBOW IS DOING A LOT BETTER THAN THE PUBLICLY TRADED CONGLOMERATE HE CONTROLS SETTLEMENT OF A SUIT BY BROOKE MINORITY SHAREHOLDERS OBLIGATES THE FIRM TO PAY THEM IN MIDNOVEMBER A SUM ESTIMATED AT 44 MILLION MONEY BROOKE MAY BE HARD PUT TO FIND MR LEBOW SAYS BROOKE IS MAKING EVERY EFFORT TO MEET ITS OBLIGATIONS BUT THE COMPANY'S AUDITOR COOPERS & LYBRAND DECLARED THIS SPRING THAT THERE IS SUBSTANTIAL DOUBT ABOUT BROOKE'S ABILITY TO CONTINUE AS A GOING CONCERN EVEN SO MR LEBOW WON'T BE DOING BADLY THAT'S BECAUSE IN THE LESS THAN THREE YEARS SINCE THE LEVERAGEDBUYOUT SPECIALIST PACKED A JUMBLE OF BUSINESS INTERESTS INTO THE DEBTBLOATED PUBLIC COMPANY BROOKE GROUP MR LEBOW HAS INCREASINGLY USED THE COMPANY AS A KIND OF PERSONAL BANK IN DRIBS AND DRABS BY TAKING OUT LOANS AND REPEATEDLY MELDING HIS PERSONALBUSINESS INTERESTS WITH BROOKE'S MR LEBOW HAS KEPT HIS HEAD ABOVE WATER WHILE THE COMPANY SINKS UNDER THE WEIGHT OF SOME 400 MILLION IN DEBT ALL TOLD THREE YEARS OF BROOKE REGULATORY FILINGS SHOW DOZENS OF TRANSACTIONS IN WHICH THE CHAIRMAN OBTAINED MANY MILLIONS OF DOLLARS FROM THE COMPANY OF WHICH HE ALSO IS PRESIDENT CHIEF EXECUTIVE OFFICER AND TREASURER A LOOK AT MR LEBOW'S SECURITIES AND EXCHANGE COMMISSION FILINGS FOR THE PAST THREE YEARS SHOWS HOW EASILY A DOMINANT SHAREHOLDER CAN TAP INTO THE CASH STREAM OF A COMPANY HE CONTROLS IT ALSO SUGGESTS THAT IT MIGHT BE WISE FOR SHAREHOLDERS OF A PUBLICLY TRADED COMPANY TO TAKE IT AS A WARNING SIGN WHEN THE CONTROLLING SHAREHOLDER BEGINS PULLING MONEY OUT OF A COMPANY ON A REGULAR BASIS NO COMPANY DIRECTOR HAS EVER PUBLICLY QUESTIONED BROOKE'S LOANS TO MR LEBOW THE TOTAL OF WHICH STILL OUTSTANDING IS ABOUT 178 MILLION BY MR LEBOW'S OWN RECKONING BUT THEN OF THE COMPANY'S TWO OUTSIDE DIRECTORS IN RECENT YEARS ONE HELD A CONSULTING CONTRACT WITH A BROOKE SUBSIDIARY WHILE ANOTHER WAS MR LEBOW'S NEIGHBOR IN THE EXCLUSIVE COMMUNITY OF FISHER ISLAND THERE ARE NOW ONLY THREE DIRECTORS MR LEBOW AND TWO OTHER BROOKE OFFICERS NEW YORK INVESTOR MICHAEL PRICE SAYS HE ENJOYS THE COMPANY OF THE GREGARIOUS MR LEBOW BUT NEVER INVESTED IN HIS DEALS BECAUSE HE'S RUNNING THE COMPANY FOR BEN NOT FOR OTHER PEOPLE MR LEBOW GREW UP NEAR PHILADELPHIA WITH LITTLE MONEY AND WHEN HE GOT SOME HE BEGAN SPENDING LAVISHLY FRIENDS TELL HOW HE CHARTERED A PLANE TO FLY 150 GUESTS TO A 3 MILLION BASH IN LONDON IN THE SPRING OF 1989 FOR THE LAUNCHING OF HIS YACHT STEFAREN NAMED FOR HIS DAUGHTERS STEFANIE AND KAREN AND MODELED AFTER QUEEN VICTORIA'S PRIVATE YACHT GUESTS STAYED AT CLARIDGE'S HOTEL AND WERE MET AT THE PORT BY A MARCHING BAND IN FULL REGALIA SOUVENIRS INCLUDED GOLD COINS WITH A LIKENESS OF MR LEBOW DONNING A LORD NELSON HAT BUT THEN THE FINANCIAL PRESSURES BEGAN BUILDING UP IN NOVEMBER 1990 MR LEBOW MERGED A LOT OF UNPROFITABLE INTERESTS HELD BY CLOSELY HELD BROOKE PARTNERS INTERESTS HE HAD ACQUIRED THROUGH LBOS INTO THE ALREADY PUBLICLY TRADED BROOKE GROUP WHICH HE ALSO CONTROLLED BROOKE GROUP WAS THE RENAMED LIGGETT CIGARETTE COMPANY IN WHICH MR LEBOW HAD ACQUIRED A MAJORITY INTEREST THROUGH A 1986 LBO THE CIGARETTE COMPANY SAID IT WAS BUYING MR LEBOW'S OTHER INTERESTS BECAUSE IT WANTED TO DIVERSIFY WITHIN MONTHS HOWEVER MR LEBOW BEGAN TAPPING ITS COFFERS IN FEBRUARY 1991 BROOKE GROUP LENT HIM 5 MILLION MONEY HE AGREED TO REPAY BY DECEMBER 1991 HE STILL HASN'T THE SAME MONTH BROOKE MADE THE LOAN IT BOUGHT AN AIRPLANE FROM MR LEBOW ASSUMING 59 MILLION OF HIS DEBT AND PAYING HIM 14 MILLION THE TOTAL OF CASH AND DEBT ASSUMPTION WAS A LITTLE LESS THAN THE 8 MILLION AT WHICH THE PLANE WAS APPRAISED FILINGS SAY HOWEVER L AVIATION INC A PRIVATE COMPANY THAT WAS MAJORITY OWNED BY MR LEBOW MAINTAINED THE PLANE MOREOVER EVEN THOUGH BROOKE NOW OWNED AN AIRPLANE IT CONTINUED RENTING PAYING CHARGES OF 441000 IN 1991 AND 594000 IN 1992 TO TWO LEBOWOWNED PRIVATE COMPANIES L AVIATION AND BROOKE AVIATION AROUND THE TIME BROOKE WAS BUYING HIS AIRPLANE IT WAS ALSO SNAPPING UP SOME OF THE CONVERTIBLE PREFERRED STOCK HE HAD BEEN ISSUED IN CONNECTION WITH THE RECENT MERGER ALL TOLD IN THE TWO WEEKS ENDED MARCH 5 1991 BROOKE PAID 1390793 FOR THE PREFERRED SHARES WHICH WEREN'T PUBLICLY TRADED ONE THING MR LEBOW WASN'T YET GETTING FROM BROOKE WAS HIS COMPENSATION INSTEAD HE AND FOUR TOP LIEUTENANTS DREW SALARIES FROM ANOTHER OF MR LEBOW'S PRIVATE COMPANIES BROOKE MANAGEMENT INC IN TURN BROOKE MANAGEMENT MADE ITS MONEY FROM BROOKE GROUP AND SUBSIDIARIES WHICH PAID THE MANAGEMENT COMPANY HANDSOME RETAINERS FOR ADVISORY CONSULTING AND OTHER SERVICES IN 1990 BROOKE MANAGEMENT WHOSE SOLE CLIENT WAS BROOKE GROUP COLLECTED 104 MILLION FOR SERVICES AND EXPENSES IN 1991 IT REAPED 102 MILLION HEFTY LOSSES BUT IN MID1991 MR LEBOW EVIDENTLY HAD A CHANGE OF HEART ABOUT KEEPING HIS MANAGEMENT COMPANY PRIVATE BROOKE GROUP PAID MR LEBOW 25 MILLION FOR AN OPTION TO BUY 80 OF BROOKE MANAGEMENT A COMPANY WHOSE ASSETS CONSISTED OF MR LEBOW AND HIS ASSOCIATES FOR 1991 BROOKE GROUP POSTED A NET LOSS OF 1496 MILLION MR LEBOW TOLD SHAREHOLDERS THE DEFICIT WAS MUCH LARGER THAN WE ANTICIPATED PARTLY BECAUSE OF LOSSES AND A RESTRUCTURING CHARGE AT SKYBOX INTERNATIONAL INC A SPORTS AND COMICS TRADINGCARD SUBSIDIARY LAUNCHED TWO YEARS EARLIER THE COMPANY ALSO TOOK A CHARGE TO RESTRUCTURE ITS COMPUTERSOFTWARE BUSINESS BUT BROOKE'S 1991 TROUBLES DIDN'T STOP IT FROM BUYING BACK 168000 OF MR LEBOW'S COMMON SHARES THAT YEAR AND IN DECEMBER MR LEBOW BORROWED 500000 MORE FROM THE LOSSRIDDEN COMPANY HE ALSO DECIDED THAT BROOKE MIGHT NEED TO BUY HIS LAST AIRPLANE AND SOLD THE COMPANY A 26 MILLION OPTION ON IT MR LEBOW EVENTUALLY FOUND A DIFFERENT BUYER FOR HIS PLANE BUT HE HASN'T REPAID THE OPTION PRICE AS AGREED UPON THOUGH HE SAYS HE PLANS TO DO SO MR LEBOW AT TIMES HAS TAKEN STEPS TO LOWER HIS DEBT OBLIGATIONS TO BROOKE FOR EXAMPLE IN LATE 1991 HE SOUGHT TO REPAY 765 MILLION BY ASSIGNING CERTAIN NOTES TO BROOKE INCLUDING SOME FROM A NOWCOLLAPSED BRITISH BOAT YARD HOWEVER THE NOTES TURNED OUT TO BE WORTHLESS MR LEBOW WHO PROMISED TO MAKE GOOD ON THIS SUM SAYS HE STILL PLANS TO DO SO IN 1992 BROOKE'S NET LOSS TOTALED 758 MILLION YET THE COMPANY WENT AHEAD AND EXERCISED ITS OPTION TO BUY MR LEBOW'S MANAGEMENT FIRM FIRST PAYING 96 MILLION FOR AN 80 STAKE THEN PICKING UP THE REST LATER IN THE YEAR FOR 24 MILLION IN AN SEC FILING BROOKE SAID IT GOT AN INVESTMENT BANK'S INDEPENDENT APPRAISAL OF THE MANAGEMENT FIRM BROOKE ALSO SAID THAT IF IT HAD BOUGHT THE MANAGEMENT COMPANY IN 1990 IT WOULD HAVE SAVED ITSELF APPROXIMATELY 2 MILLION FOR 1991 AND 1990 BUT AS IT TURNED OUT BROOKE MANAGEMENT WOULD SOON HAVE LESS TO MANAGE WITHIN A YEAR TWO BROOKE GROUP UNITS FROM WHICH THE MANAGEMENT FIRM WAS COLLECTING REVENUE DROPPED OUT OF THE FEEPRODUCING LINEUP MAI SYSTEMS CORP WHICH MR LEBOW HAD BOUGHT IN A 1985 LBO AND FOLDED INTO BROOKE ENTERED CHAPTER 11 BANKRUPTCY PROCEEDINGS THIS YEAR WITH 38 MILLION OWED TO ITS LARGEST CREDITOR BROOKE GROUP THERE WENT MORE THAN 1 MILLION IN ANNUAL MANAGEMENT FEES ANOTHER 300000 A YEAR IN FEES DISAPPEARED IN APRIL WHEN BROOKE SOLD ITS EDWARDS AEROSPACE UNIT AND NOW THAT MR LEBOW AND HIS LIEUTENANTS WOULDN'T BE COLLECTING SALARIES FROM THE ACQUIRED MANAGEMENT COMPANY HE CALLED ON BROOKE TO PAY HIM DIRECTLY LAST YEAR MR LEBOW EARNED MORE THAN 15 MILLION IN SALARY AND BONUSES BUT IN DRAWING MONEY FROM BROOKE'S INCREASINGLY SHALLOW COFFERS MR LEBOW OUTDID HIMSELF LAST YEAR BROOKE SPENT NEARLY 35 MILLION BUYING STOCK FROM MR LEBOW DURING THE YEAR THESE PURCHASES LIKE THE OTHERS WERE NOT PART OF ANY GENERAL STOCK BUYBACK BROOKE ALSO HAS DISCLOSED THAT ANOTHER OF MR LEBOW'S CLOSELY HELD COMPANIES OWES 300000 TO A BROOKE SUBSIDIARY FOR UNREIMBURSED MEDICAL PLAN PAYMENTS LAST YEAR AND MR LEBOW'S 1992 BORROWINGS FROM BROOKE COULD HAVE KEPT A BANK LENDING OFFICER BUSY OVER THE COURSE OF THE YEAR MR LEBOW BORROWED MORE THAN 65 MILLION IN A HALFDOZEN DIFFERENT WAYS SUCH AS A 1750000 CREDIT LINE IN MAY AND A 14 MILLION CREDIT LINE IN SEPTEMBER HE SOON USED THE CREDIT LINES FOR ACTUAL BORROWING BUT BROOKE WAS FEELING PINCHED FOR CASH LATE IN THE YEAR THE COMPANY STOPPED PAYING A 14CENTASHARE QUARTERLY CASH DIVIDEND TO SHAREHOLDERS MR LEBOW WASN'T THE ONLY COMPANY OFFICER BORROWING MONEY RICHARD RESSLER EXECUTIVE VICE PRESIDENT AND UNTIL RECENTLY VICE CHAIRMAN OF THE BOARD DIDN'T REPAY LOANS FROM BROOKE TOTALING MORE THAN 51 MILLION BROOKE TERMINATED THE DEBT BUT HAD TO TAKE A 27 MILLION CHARGE AGAINST EARNINGS BECAUSE THE BROOKE SHARES THAT HAD SERVED AS MR RESSLER'S COLLATERAL WEREN'T WORTH AS MUCH AS HIS LOAN MR RESSLER WHO LEFT THE BOARD IN APRIL DIDN'T RETURN PHONE CALLS SEEKING COMMENT IN NOVEMBER 1992 ANOTHER OF BROOKE'S BUSINESSES AN ENGLISH BOAT YARD KNOWN AS BROOKE YACHTS INTERNATIONAL LTD FOUNDERED LEAVING BROOKE TO WRITE OFF ITS 48 MILLION INVESTMENT IN THE YARD THE SETBACK DIDN'T COME AS A GREAT SURPRISE THE YARD WAS ON THE VERGE OF COLLAPSE BACK IN 1988 WHEN IT WAS BUILDING MR LEBOW'S 25 MILLION YACHT TO ENSURE THAT THE YACHT GOT BUILT MR LEBOW BOUGHT THAT COMPANY TOO LATER SELLING IT TO BROOKE AS IT HAPPENS MR LEBOW STILL OWES BROOKE YACHTS 11 MILLION FOR REFITTING WORK A DEBT THAT DATES BACK TO BEFORE THE MERGER MR LEBOW SAYS HE NO LONGER OWNS THE YACHT HE SAYS A PROFESSIONAL YACHT BROKER ARRANGED THE SALE TO A WEALTHY FOREIGN BUSINESSMAN FOR AN UNDISCLOSED PRICE AS FOR THE LOAN FILINGS SAY IT IS PAYABLE ON DEMAND ICAHN AND BLACK MR LEBOW ALSO SPENDS TIME HAGGLING WITH FINANCIERS LEON BLACK OF APOLLO ADVISORS AND CARL ICAHN WHO ARE THE BIGGEST DEBTHOLDERS OF BOTH BROOKE AND ITS 42OWNED NEW VALLEY SUBSIDIARY NEW VALLEY COMPRISES REMNANTS OF THE OLD WESTERN UNION IN WHICH MR LEBOW ACQUIRED A MAJORITY STAKE FOR 25 MILLION IN 1987 IN THE PAST MR LEBOW HAS ENTERTAINED BOTH MESSRS BLACK AND ICAHN ABOARD THE STEFAREN AFTER MR ICAHN'S FIRST EXCURSION ON THE YACHT A THREEDAY CRUISE IN THE MEDITERRANEAN IN 1989 HE SNAPPED UP 60 MILLION FACE VALUE OF WESTERN UNION BONDS NEITHER MR BLACK NOR MR ICAHN WOULD COMMENT NEW VALLEY ENTERED CHAPTER 11 BANKRUPTCY PROCEEDINGS THIS YEAR ITS TELEX BUSINESS HAD QUICKLY LOST VALUE AS FAX TECHNOLOGY SPREAD HOWEVER ITS MONEYTRANSFER BUSINESS IS PROFITABLE MR LEBOW IS FIGHTING NEW VALLEY DEBTHOLDERS TO RETAIN CONTROL OF THAT BUSINESS MEANWHILE SKYBOX INTERNATIONAL BROOKE'S TRADINGCARD DISTRIBUTOR WAS OVERHAULED LAST YEAR AFTER A 1991 LOSS OF 80 MILLION IT WAS MODESTLY PROFITABLE IN THE 1993 FIRST QUARTER LAST WEEK BROOKE FILED WITH THE SEC FOR A POSSIBLE SPINOFF OF SKYBOX TO BROOKE SHAREHOLDERS THIS WOULD ESPECIALLY BENEFIT BROOKE'S NO 2 EXECUTIVE MR RESSLER WHO HOLDS A WARRANT TO BUY MORE THAN HALF A MILLION BROOKE GROUP SHARES FOR 760 EACH FAR ABOVE THE CURRENT MARKET PRICE OF 5125 A SHARE THE SPINOFF WOULD REDUCE HIS WARRANTS' EXERCISE PRICE TO 10 CENTS A SHARE THE SEC FILING SAYS IN ANY CASE THERE ARE PROBLEMS ON THE HORIZON FOR SKYBOX ACCORDING TO COMPANY FILINGS ITS LICENSE AGREEMENT WITH MARVEL ENTERTAINMENT GROUP INC EXPIRES IN DECEMBER AND WON'T BE RENEWED BECAUSE MARVEL HAS SINCE ACQUIRED A SKYBOX RIVAL FLEER CORP PEOPLE IN THE TRADINGCARD INDUSTRY SAY MARVEL ACCOUNTS FOR SOME 28 OF SKYBOX'S SALES MR LEBOW SAYS BROOKE IS DEVELOPING OTHER SOURCES OF REVENUE THAT WILL MORE THAN REPLACE THAT LOST IN THE MARVEL SITUATION MR LEBOW SAYS HE SPENDS ONE OF EVERY SIX WEEKS IN MOSCOW TRYING TO SHORE UP BROOKE'S VENTURES THERE CIGARETTE FACTORY WORKERS EMPLOYED BY BROOKE'S JOINT VENTURE WITH MOSCOW'S DUCAT TOBACCO COMPANY WENT ON STRIKE FOLLOWING BROOKE'S CHARGES THAT RUSSIAN MANAGERS EMBEZZLED BROOKE'S MONEY AND NOT A SINGLE CIGARETTE HAS BEEN PRODUCED SO FAR POTENTIAL TENANTS HAVEN'T WANTED TO MOVE INTO BROOKE'S AND DUCAT'S NEARLY FINISHED 7 MILLION OFFICE COMPLEX BECAUSE OF BICKERING WITH THE GOVERNMENT BROOKE SAID YESTERDAY IT HAS AGREED TO RESOLVE THE DISPUTES AND EXPECTS ONE BUILDING TO BE FULLY LEASED IN 90 DAYS RUSSIA IS A COUNTRY EXPERIENCING POLITICAL AND ECONOMIC TURMOIL AND CONDITIONS THERE ARE DIFFICULT FOR FOREIGN BUSINESSES MR LEBOW SAYS EVEN LIGGETT A LONGTIME FOUNTAIN OF CASH IS STRUGGLING BESIDES THE CIGARETTE INDUSTRY'S PRICE BATTLE AND THE CHANCE OF TAX INCREASES LIGGETT IS GRAPPLING WITH FALLOUT FROM EARLIER MANAGEMENT MISCUES LIGGETT PIONEERED THE SALE OF LOWPRICED GENERIC CIGARETTES IN THE 1980S BUT THEN SWITCHED BACK TO FOCUSING ON ITS FULLPRICED BRANDS L&M LARK EVE AND CHESTERFIELD SINCE MR LEBOW BOUGHT LIGGETT ITS MARKET SHARE IN THE US HAS SLID TO 3 FROM 6 AND LIGGETT'S NET INCOME LAST YEAR FELL 49 IN MARCH LIGGETT FIRED ITS TWO TOP EXECUTIVES AND GAVE THE TOP JOB TO EDWARD HORRIGAN JR FORMER HEAD OF RJ REYNOLDS CLARENCE SPANGLE BROOKE'S LAST REMAINING OUTSIDE BOARD MEMBER QUIT HIS POST IN MAY SHORTLY AFTER HE MR LEBOW AND FOUR OTHER BROOKE OFFICERS WERE NAMED DEFENDANTS IN A SHAREHOLDER SUIT FILED IN DELAWARE'S CHANCERY COURT THE SUIT CLAIMS BROOKE HAS BEEN DENUDED OF TENS OF MILLIONS OF DOLLARS OF CORPORATE ASSETS IN TRANSACTIONS WHICH PERSONALLY BENEFITED AND ENRICHED MANAGEMENT IT SEEKS DAMAGES WITHOUT SPECIFYING AN AMOUNT MR LEBOW SAYS THE TRANSACTIONS AT ISSUE WERE APPROPRIATELY AUTHORIZED BY THE BOARD OF DIRECTORS AND IN CERTAIN CIRCUMSTANCES BY THE STOCKHOLDERS AS WELL MR SPANGLE DECLINES TO COMMENT BROOKE GROUP HAS MOVED IN CHANCERY COURT TO DISMISS THE COMPLAINT BROOKE'S LATEST FILINGS SHOW A NET CAPITAL DEFICIENCY OF 490 MILLION YET MR LEBOW CONTINUES TO ARRANGE BORROWINGS FOR HIMSELF IN JANUARY FOR EXAMPLE BROOKE APPROVED AN UNSECURED 1475000 CREDIT LINE FOR HIM BROOKE ALSO RECENTLY EXTENDED THE DUE DATE ON ANOTHER 29 MILLION OF HIS DEBT BUT THERE IS SOME EVIDENCE MR LEBOW HAS BEGUN TO CURTAIL HIS LIFESTYLE IN ADDITION TO THE YACHT HE ALSO RECENTLY SOLD A MANHATTAN CONDOMINIUM FOR WHICH HE PAID MORE THAN 7 MILLION AND AN APARTMENT IN THE CAYMAN ISLANDS SAYS HIS FRIEND HOWARD LORBER WHO SITS ON NEW VALLEY'S BOARD FOR BEN IT'S TOUGH TIMES NOW NOT AS MUCH FUN AS THE '80S AND NOT AS EASY TO RAISE MONEY AT ONE TIME MR LEBOW COULD LAUNCH A FINANCING EASILY WITH THE HELP OF INVESTMENT BANKERS SUCH AS THENPOWERFUL DREXEL BURNHAM BUT EVEN DREXEL LET HIM DOWN PROVOKING A BAWDY RESPONSE FROM MR LEBOW AFTER DREXEL CANCELED A FINANCING FOR ACQUISITIONHUNGRY MAI A WHILE BACK MR LEBOW THREW A WAKE AT NEW YORK'S HISTORIC PUCK BUILDING HE SERVED THE DREXEL BANKERS HOT DOGS ON PAPER PLATES AND GAVE THEM GIFTS ALLUDING TO HIS PERCEIVED MISTREATMENT CONDOMS ENCASED IN LUCITE 9307300021 930730 TECHNOLOGY BRIEF GENENTECH INC COURT'S INJUNCTION CLOSES PATENT DISPUTE OVER TPA GENENTECH INC SOUTH SAN FRANCISCO CALIF SAID IT WAS GRANTED A PERMANENT SALES INJUNCTION AGAINST WELLCOME PLC OF LONDON AND ITS RELATED COMPANIES BRINGING TO A CLOSE A FIVEYEAR PATENT DISPUTE OVER A HEART AGENT THE BIOTECH COMPANY SAID THE FEDERAL COURT IN DELAWARE GRANTED THE INJUNCTION WHICH PREVENTS WELLCOME FROM MARKETING TISSUE PLASMINOGEN ACTIVATOR OR TPA UNTIL GENENTECH'S PATENTS EXPIRE IN 2005 SOLD UNDER THE BRAND NAME ACTIVASE THE AGENT DISSOLVES BLOOD CLOTS IN 1990 THE COURT FOUND THAT WELLCOME HAD INFRINGED ON THREE GENENTECH PATENTS 9307300020 930716 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE CITY NATIONAL CORP'S SECONDQUARTER EARNINGS OF 11 CENTS A SHARE WERE BELOW THE AVERAGE OF FOUR ANALYSTS' ESTIMATES OF 12 CENTS A SHARE RESULTING IN A NEGATIVE EARNINGS SURPRISE OF 833 BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE CITY NATIONAL WAS INCORRECTLY SHOWN AS A 5217 NEGATIVE SURPRISE IN THE JULY 16 QUARTERLY EARNINGS SURPRISES TABLE 9307300019 930730 FRENCH AND GERMAN FUTURES EXCHANGES PLAN TO LINK TRADING IN THEIR MARKETS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL THE BIG FUTURES EXCHANGES IN PARIS AND GERMANY SAID THEY WOULD LINK TRADING BETWEEN THEIR MARKETS IN THE KIND OF SWEEPING COOPERATION THAT SO FAR HAS ELUDED THE US FUTURES INDUSTRY THE MOVE IS LIKELY TO PUT PRESSURE ON THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE WHICH NOW DOMINATES EUROPEAN FUTURES TRADING WITH ITS BIG CONTRACTS BASED ON OTHER COUNTRIES' INTEREST RATES THE AGREEMENT IS BETWEEN THE PARISBASED MARCHE A TERME INTERNATIONAL DE FRANCE OR MATIF FUTURES EXCHANGE AND THE FRANKFURTBASED DEUTSCHE TERMINBORES OR DTB EXCHANGE AMONG OTHER THINGS IT CALLS FOR COMPUTER SCREENS TO BE INSTALLED THAT ALLOW MATIF MEMBERS DIRECT ACCESS TO DTB'S POPULAR CONTRACTS INCLUDING THE ONE BASED ON THE BENCHMARK GERMAN BUND THE LONDON EXCHANGE KNOWN AS LIFFE ALSO TRADES A VERSION OF THIS CONTRACT THE SCREENS ARE SCHEDULED TO BE IN PLACE BY MID1994 IN RETURN THE MATIF EXCHANGE WILL USE DTB TRADING SOFTWARE TO LIST TWO YETTOBEDETERMINED MATIF CONTRACTS BASED ON FRENCH STOCKS OR BONDS WHICH THEN WILL BE AVAILABLE ON TRADING SCREENS IN GERMANY PLANS CALL FOR THIS STEP TO BE FINISHED IN 1995 A THIRD PHASE OF THE PLAN CALLS FOR THE EXCHANGES TO EXPLORE ADDITIONAL TRADE SHARING AND THE POSSIBILITY OF JOINTLY CLEARING FUTURES TRADES TO REDUCE COSTS IT'S A WISE MOVE SAID JACK WING CHAIRMAN OF THE CHICAGO CORP A BROKERAGE FIRM THAT OFTEN TRADES ON THE TWO EUROPEAN EXCHANGES IT WILL OPEN UP THE MARKETS TO MORE PEOPLE WHICH IS VERY BENEFICIAL GERARD PFAUWADEL CHAIRMAN OF MATIF SAID THE AGREEMENT SEEKS TO ESTABLISH THE FOUNDATIONS OF A FRANCOGERMAN PLATFORM OF DERIVATIVE PRODUCTS WHICH COULD ACT AS A FRAMEWORK WHICH OTHER EXCHANGES WOULD JOIN BY AGREEING TO ALLOW TRADERS AT EACH EUROPEAN EXCHANGE DIRECT ACCESS TO THE OTHER'S PRODUCTS THE TWO MARKETS HAVE ACCOMPLISHED WHAT THE HUGE FUTURES MARKETS IN CHICAGO SO FAR HAVE BEEN UNABLE TO DO THE CHICAGO MERCANTILE EXCHANGE HAS AN AGREEMENT WITH THE SINGAPORE MONETARY EXCHANGE THAT ALLOWS MUTUAL OFFSET OF A CONTRACT WHICH BOTH MARKETS TRADE BASED ON SHORTTERM US INTEREST RATES LAST YEAR THE CHICAGO BOARD OF TRADE WAS NEGOTIATING TERMS OF A SIMILAR ARRANGEMENT WITH LONDON'S LIFFE BEFORE THE TALKS FELL THROUGH THE TWO CHICAGO MARKETS ALSO HAVE AN AGREEMENT BETWEEN THEMSELVES TO OFFER THEIR CONTRACTS ON THE GLOBEX AFTERHOURS FUTURES TRADING SYSTEM YET OTHER ATTEMPTS AT COOPERATION INCLUDING A PROPOSAL TO UNIFY CLEARING OF TRADES AT THE TWO EXCHANGES SO FAR HAVE BEEN SANDBAGGED BY THE STRONG TRADITIONAL RIVALRY BETWEEN THEM 9307300018 930730 MARKETING & MEDIA RJR NABISCO PROFIT DECREASED BY 12 IN SECOND QUARTER BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP POSTED A 12 DROP IN SECONDQUARTER PROFIT REFLECTING THE COSTLY TOLL OF THE CIGARETTE PRICE WAR AND INDICATED THAT A NEW ROUND OF COSTCUTTING IS AHEAD RJR ALSO SAID IT EXPECTS RESULTS TO BE FURTHER DEPRESSED THROUGH YEAR'S END AS WALL STREET HAS EXPECTED RJR EARNED 77 MILLION OR SIX CENTS A SHARE COMPARED WITH 87 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER SALES FELL NEARLY 7 TO 371 BILLION FROM 398 BILLION IN THE YEAREARLIER PERIOD THE COMPANY SAID DOMESTIC TOBACCO SALES DROPPED 20 AND PROFIT PLUMMETED 36 AS A RESULT OF THE INTENSE PRICE COMPETITION VOLUME FELL 7 RJR HAS UNDERGONE EXTENSIVE STREAMLINING SINCE IT WAS ACQUIRED BY KOHLBERG KRAVIS ROBERTS & CO IN 1989 AND A NEW ROUND OF CUTS WOULD BE A GRIM ACKNOWLEDGEMENT THAT THE PRICE WAR HAS PERMANENTLY LOWERED INDUSTRY PROFITS REQUIRING A LOWER COST STRUCTURE FURTHER CUTS COULD INCLUDE A REDUCTION IN CIGARETTE MARKETING OUTLAYS LAYOFFS AND WRITEOFFS WE PLAN TO GET OUR HOUSE IN ORDER THIS YEAR RJR'S NEW CHAIRMAN AND CHIEF EXECUTIVE CHARLES M HARPER SAID IN A STATEMENT ACCOMPANYING THE COMPANY'S EARNINGS FIGURES MR HARPER WARNED RJR WILL RECORD SIGNIFICANT EXPENSES TO ENABLE US TO ADJUST TO A CHANGING BUSINESS ENVIRONMENT THOSE EXPENSES COMBINED WITH THE BLEAK OUTLOOK FOR TOBACCO SALES WILL FURTHER DEPRESS RJR'S RESULTS THROUGH THE END OF THE YEAR MR HARPER SAID STAY TUNED SAID AN RJR EXECUTIVE IN THE NEXT FEW QUARTERS WE ARE GOING TO BE LOOKING AT THE COST SIDE OF THE EQUATION GIVEN THAT OVERALL MARGINS HAVE DECLINED LAST WEEK THE MAJOR CIGARETTE COMPANIES CUT THE PRICES OF PREMIUM BRANDS BY 40 CENTS A PACK THAT MAY REQUIRE CIGARETTE MAKERS TO REFUND TENS OF MILLIONS OF DOLLARS TO DISTRIBUTORS THAT PURCHASED CIGARETTES AT THE OLDER HIGHER PRICE THE POTENTIAL COST OF BUYING DOWN OLD INVENTORY IS ONE OF THE EXPENSES MR HARPER REFERRED TO RJR NABISCO'S FOOD BUSINESS REPORTED A 2 SALES GAIN AND 6 PROFIT INCREASE RJR'S STOCK CLOSED AT 5125 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9307300017 930730 INTERNATIONAL ENIMONT AIDES PAID 80 MILLION IN BRIBE MONEY MILAN TWO ITALIAN EXECUTIVES SAID THEY PAID BRIBES TOTALING MORE THAN 80 MILLION TO THE MAIN POLITICAL PARTIES DURING THE 1990 TAKEOVER OF CHEMICAL COMPANY ENIMONT SPA THEY ALSO NAMED INDIVIDUAL POLITICIANS WHO RECEIVED BRIBES FORMER ENIMONT EXECUTIVES GIUSEPPE GAROFANO AND CARLO SAMA WHO ARE BOTH NOW IN CUSTODY HAVE OUTLINED HOW THAT MONEY WAS DIVIDED AMONG THE COUNTRY'S POLITICAL LEADERS ACCORDING TO TESTIMONY LEAKED TO THE ITALIAN PRESS AS MUCH AS HALF OF THE BRIBE MONEY WENT TO THE SOCIALISTS WHILE 30 WENT TO THE CHRISTIAN DEMOCRATIC PARTY THE MAIN GOVERNING PARTIES AT THE TIME THE WEEKLY MAGAZINE L'ESPRESSO REPORTED THE ENIMONT AFFAIR HAS BECOME THE FOCUS OF THE CLEAN HANDS INVESTIGATION INTO THE MASSIVE SYSTEM OF BRIBES AND KICKBACKS THAT HAS GREASED ITALY'S GOVERNMENT AND ECONOMY FOR DECADES THE PROBE HAS ALREADY LED TO THE APPARENT SUICIDES OF AT LEAST TWO OF THE KEY PLAYERS IN THE TAKEOVER OF ENIMONT IN THE PAST TWO WEEKS GABRIELE CAGLIARI FORMER CHAIRMAN OF STATE ENERGY COMPANY ENTE NAZIONALE IDROCARBURI AND RAUL GARDINI THE OUSTED CHAIRMAN OF MONTEDISON SPA BOTH KILLED THEMSELVES MONTEDISON A HOLDING COMPANY FOR FERRUZZI FAMILY INTERESTS OWNED 40 OF ENIMONT FORMERLY A JOINT VENTURE WITH THE GOVERNMENT THAT PRODUCED BULK CHEMICALS IT'S WIDELY BELIEVED THAT ENI WHICH ORIGINALLY HAD A 40 STAKE IN ENIMONT SUBSTANTIALLY OVERPAID WHEN IT BOUGHT OUT MONTEDISON IN 1990 FOR 2805 TRILLION LIRE 176 BILLION IN A CORPORATE DIVORCE IT NOW SEEMS MUCH OF IT WENT TO POLITICIANS AMONG THE INDIVIDUALS WHO ALLEGEDLY RECEIVED 15 BILLION LIRE A PIECE FORMER BUDGET MINISTER PAOLO CIRINO POMICINO THE LATE STATE INDUSTRY MINISTER FRANCO PIGA THE FORMER SECRETARY OF THE CHRISTIAN DEMOCRATIC PARTY ARNALDO FORLANI FORMER PRIME MINISTER BETTINO CRAXI AND FORMER DEPUTY PREMIER CLAUDIO MARTELLI THE TESTIMONY ALSO REPORTEDLY SAID THAT AMONG OTHERS THE LATE MR CAGLIARI OF ENI AND BRUNO PAZZI THE FORMER HEAD OF THE MILAN STOCKMARKET WATCHDOG CONSOB ALSO RECEIVED BRIBES THOSE POLITICIANS NAMED WHO COULD BE REACHED FOR COMMENT ALL DENIED THE ALLEGATIONS MR CRAXI CHARACTERIZING HIMSELF AS A VICTIM OF INTIMIDATION AND THREATS WENT SO FAR AS TO INDICATE THAT HE TOO MIGHT CONTEMPLATE SUICIDE IF THE CURRENT INVESTIGATION CONTINUES 9307300016 930730 GM OFFERS CHRONOLOGY TO SHOW LOPEZ GOT DOCUMENTS AFTER SIGNING WITH VW BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GENERAL MOTORS CORP LEVELED NEW ACCUSATIONS AT J IGNACIO LOPEZ DE ARRIORTUA ASSERTING THAT ITS FORMER PURCHASING CHIEF ATTENDED A STRATEGIC MEETING AND REQUESTED INTERNAL GM DOCUMENTS EVEN AFTER HE HAD SIGNED ON AT VOLKSWAGEN AG GERMAN PROSECUTORS AND THE US JUSTICE DEPARTMENT ARE INVESTIGATING CHARGES THAT MR LOPEZ ABSCONDED WITH SENSITIVE DOCUMENTS FROM GM BEFORE JUMPING TO EUROPE'S LARGEST CAR MAKER US INVESTIGATORS HAVE BEGUN REVIEWING RECORDS AT GM'S OFFICES IN DETROIT AND CONSULTING WITH GM LAWYERS HOWEVER ONE JUSTICE OFFICIAL YESTERDAY PLAYED DOWN A REPORT IN THE WASHINGTON POST THAT THE CLINTON ADMINISTRATION WANTS TO MAKE THE LOPEZ INVESTIGATION A TEST CASE FOR A GETTOUGH POLICY ON INDUSTRIAL ESPIONAGE BY FOREIGN COMPANIES THE OFFICIAL INDICATED THE JUSTICE DEPARTMENT'S PROBE IS IN THE EARLY STAGES NO FORMAL CHARGES HAVE BEEN FILED AGAINST MR LOPEZ HE HAS MAINTAINED HIS INNOCENCE MEANWHILE IN GERMANY ECONOMICS MINISTER GUENTER REXRODT DENOUNCED THE ESCALATING PUBLIC WARFARE BETWEEN GM AND VW AS BAD FOR GERMAN BUSINESS BUT HE DECLINED FOR NOW TO TAKE A MEDIATING ROLE IN THE DISPUTE AT A NEWS CONFERENCE YESTERDAY GM AND OPEL EXECUTIVES STRUCK BACK AT VW WHICH MADE ITS OWN ACCUSATIONS EARLIER THIS WEEK GM REELED OFF NEW SPECIFICS PURPORTING TO DETAIL THE DATES AND CIRCUMSTANCES WHEN MR LOPEZ AND CLOSE COLLEAGUES REQUESTED VARIOUS SENSITIVE INTERNAL DOCUMENTS MANY OF WHICH THEY SAY ARE NOW MISSING IN RESPONSE VW ISSUED A TERSE TWOPARAGRAPH STATEMENT SAYING THAT EVERYTHING RELEVANT HAS BEEN SAID SEVERAL TIMES AND WE HAVE NOTHING MORE TO ADD TO WHAT ALREADY IS KNOWN VW STOCK WHICH HAD REBOUNDED WEDNESDAY FELL AGAIN YESTERDAY CLOSING AT 356 MARKS DOWN 370 MARKS IN FRANKFURT AMONG ITS ACCUSATIONS YESTERDAY GM STATED THAT ON MARCH 10 MR LOPEZ ATTENDED A PERSONNEL POLICY MEETING AT OPEL'S RUESSELSHEIM HEADQUARTERS AFTER HAVING SIGNED HIS CONTRACT WITH VW ON THE NIGHT OF MARCH 9 AT THE MARCH 10 MEETING MR LOPEZ NOT ONLY FAILED TO TELL HIS COLLEAGUES HE ALREADY HAD SIGNED A CONTRACT WITH VW BUT HE ALSO REQUESTED THAT COPIES OF CERTAIN OPEL DOCUMENTS BE MAILED TO HIM AT AN ADDRESS IN SPAIN ACCORDING TO HORST BORGHS OPEL MANAGING BOARD MEMBER IN CHARGE OF PUBLIC RELATIONS AS NO ONE KNEW MR LOPEZ WAS LEAVING THE COMPANY GM SAID THIS REQUEST WAS FULFILLED MR LOPEZ THEN RETURNED TO DETROIT WHERE HE TOLD GM PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN F SMITH JR THAT AFTERNOON THAT HE HAD DECIDED TO WORK FOR VW OPEL OFFICIALS REFUSED TO CHARACTERIZE THE NATURE OF THE DOCUMENTS THAT MR LOPEZ REQUESTED MARCH 10 THE PUBLIC PROSECUTOR'S OFFICE IN DARMSTADT DECLINED TO COMMENT HANS WILHELM GAEB VICE PRESIDENT OF GM EUROPE AND OPEL SUPERVISORY BOARD MEMBER FURTHER CLAIMED THAT MR LOPEZ LAST DECEMBER REQUESTED AND RECEIVED THE EPOS LIST AN EXTENSIVE LIST OF SOME 7000090000 PARTS AND THE PRICES GM PAYS FOR THEM IN EUROPE THIS LIST IS COMPLETELY USELESS FOR THE US MARKET WHICH WAS MR LOPEZ'S AREA OF RESPONSIBILITY AT THE TIME MR GAEB SAID THE LIST IS AMONG THE DOCUMENTS THAT OPEL HAS DECLARED IS MISSING SINCE MR LOPEZ AND HIS COLLEAGUES LEFT TO JOIN VW NEITHER GM NOR THE PUBLIC PROSECUTOR'S OFFICE WOULD CONFIRM WHETHER THIS LIST OR PARTS THEREOF WERE IN THE CARTONS OF GM DOCUMENTS RECENTLY FOUND IN A WIESBADEN APARTMENT OPEL OFFICIALS ALSO CITED A LETTER MR LOPEZ DRAFTED JAN 14 IN WHICH HE INDICATED TO A BASQUE INVESTMENT CONSORTIUM THAT PLANS FOR HIS DREAM FACTORY HAD BEEN PUT ON ICE BY GM THE NEXT DAY JAN 15 MR LOPEZ MET WITH A TOP VW EXECUTIVE TO DISCUSS CHANGING COMPANIES THIS APPEARED TO CONTRAST WITH MR LOPEZ'S STATEMENTS THAT THE REVELATION MARCH 8 THAT GM WOULD NOT BUILD THE BASQUE PLANT WAS A SHOCK AND A KEY FACTOR IN HIS DECISION TO JUMP TO VW ON MARCH 9 FURTHERMORE GM CLAIMS THAT THROUGHOUT FEBRUARY JOSE MANUEL GUTIERREZ MR LOPEZ'S RIGHTHAND MAN WHO WENT WITH HIM FROM GM TO VW REQUESTED AND RECEIVED 10 TO 12 BINDERS OF MATERIALS THE GM ACCUSATIONS IMPLY THAT MR GUTIERREZ WAS DELIBERATELY ACCUMULATING DATA IN ANTICIPATION OF LEAVING MR BORGHS SAID THERE IS ALSO A SEAMLESS PATH OF DOCUMENTATION THAT SHOWS MR LOPEZ RECEIVED COPIES OF PHOTOGRAPHS OF THE NEW VECTRA CAR MODEL AN ALLEGATION MR LOPEZ HAS DENIED IN SWORN AFFIDAVITS 9307300015 930730 CHRYSLER'S PRICE BOOSTS FOR 1994 MODELS UNDERSTATE WHAT CONSUMERS MAY PAY BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP RELEASED TENTATIVE PRICES FOR ITS 1994 MODELS THAT IT SAYS ARE ONLY 12 HIGHER ON AVERAGE THAN CURRENT PRICES ON COMPARABLY EQUIPPED VEHICLES CHRYSLER SAID ITS PRICE INCREASE WAS SUBSTANTIALLY LOWER THAN GENERAL MOTORS CORP'S RECENTLY ANNOUNCED 18 RISE BUT THE BOOSTS ANNOUNCED BY BOTH AUTO MAKERS UNDERSTATE THE INCREASES THAT CONSUMERS ARE LIKELY TO PAY PARTLY BECAUSE BOTH EXCLUDED SOME PRODUCTS WITH HIGHERTHANAVERAGE PRICE INCREASES GM'S SATURN SEDANS AND CHRYSLER'S RAM PICKUPS FROM THEIR ANNOUNCED AVERAGES THE ADDITION OF NEW STANDARD EQUIPMENT HELPED RAISE THE PRICE OF SOME CHRYSLER PRODUCTS AS MUCH AS 10 AND SOME CHRYSLER DEALERS SAY THAT OVERALL PRICE INCREASES WILL BE CLOSER TO 3 OR 4 AS FOR GM IT BOOSTED ITS WHOLESALE PRICES MORE SHARPLY THAN ITS SUGGESTED RETAIL PRICES AS A RESULT DEALERS WILL BE LESS WILLING TO SELL VEHICLES AS FAR BELOW LIST PRICES AS BEFORE AND ACTUAL TRANSACTION PRICES ARE EXPECTED TO CLIMB ROUGHLY 3 TO 4 CHRYSLER HAD ALREADY BOOSTED PRICES TWICE DURING THE 1993 MODEL YEAR ON A COMPARABLY EQUIPPED BASIS THE AVERAGE PRICES FOR CHRYSLER'S CARS WILL BE UP 24 FROM THEIR PRICES A YEAR AGO THE AUTO MAKER SAID AMONG THE ADDITIONAL EQUIPMENT THAT IS BEING MADE STANDARD ON NEW CHRYSLER VEHICLES ARE AIR BAGS ON PICKUPS AND ADDITIONAL AIR BAGS IN MINIVANS THE PLYMOUTH VOYAGER SE MINIVAN WHICH NOW SELLS FOR 16276 WILL BE PRICED AT 18039 IN THE 1994 MODEL YEAR A 108 JUMP A YEAR AGO THE VAN WAS OFFERED FOR ONLY 16101 MAKING THE INCREASE FOR THE YEAR 12 THE BASE MODEL GRAND CHEROKEE WILL SELL FOR 21156 UP 12 FROM ITS INTRODUCTORY PRICE OF 18760 LAST YEAR AND UP SUBSTANTIALLY FROM ITS CURRENT PRICE OF 18990 MORE TYPICAL ARE CHANGES IN CHRYSLER'S PRICIEST AND ITS MOST INEXPENSIVE MODELS THE CHRYSLER LHS INTRODUCED THIS YEAR WILL LIST AT 30283 UP 43 SEVERAL OPTIONS INCLUDING SOPHISTICATED STEERING CONTROL AND A THEFT ALARM WILL BE STANDARD ON THE 1994 MODEL THE PLYMOUTH SHADOW WILL SELL FOR 8806 UP 49 FROM 8397 LAST FALL AND IT WILL COME EQUIPPED WITH A BETTER SOUND SYSTEM 9307300014 930730 XEROX NET FELL 97 IN SECOND QUARTER AS REVENUE DECLINED STAMFORD CONN XEROX CORP'S NET INCOME FELL 97 IN THE SECOND QUARTER AS SLOW ECONOMIES IN THE US AND EUROPE AND THE COMPANY'S SALES REORGANIZATION HAMPERED ITS CORE DOCUMENTPROCESSING BUSINESS XEROX'S EARNINGS FOR THE QUARTER TOTALED 112 MILLION OR 96 CENTS A SHARE COMPARED WITH 124 MILLION OR 112 A SHARE THE YEAR BEFORE REVENUE WAS DOWN SLIGHTLY AT 354 BILLION COMPARED WITH 355 BILLION A YEAR EARLIER PAUL A ALLAIRE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE ECONOMIC ENVIRONMENT IN BOTH THE US AND EUROPE IS CAUSING CUSTOMERS TO SCALE BACK SPENDING ON OFFICE EQUIPMENT IN ADDITION SALES IN THE US CONTINUED TO BE DISRUPTED BY XEROX'S REORGANIZATION OF ITS SALES FORCE AS THE COMPANY PREDICTED IN MAY MR ALLAIRE ADDED THAT DOCUMENTPROCESSING GROSS MARGINS FELL IN THE QUARTER BECAUSE OF A SHIFT IN PRODUCT MIX TOWARD LOWEND ITEMS ADVERSE CURRENCY RATES AND PRICING PRESSURE BUT MR ALLAIRE PREDICTED THAT SALES WILL PICK UP IN THE US IN THE SECOND HALF AS WE REALIZE THE PRODUCTIVITY BENEFITS FROM THE SALES REORGANIZATION HE ALSO SAID THAT THE COMPANY'S PLAN TO WITHDRAW FROM FINANCIAL SERVICES IS ON TRACK XEROX THIS WEEK SIGNED A LETTER OF INTENT TO SELL FURMAN SELZ HOLDING CORP TO THE INVESTMENT CONCERN'S MANAGEMENT FOR ABOUT 100 MILLION THE SALE IS EXPECTED TO GO THROUGH IN THE FALL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING XEROX'S STOCK CLOSED 125 HIGHER AT 73625 FOR THE FIRST HALF EARNINGS TOTALED 301 MILLION OR 273 A SHARE COMPARED WITH A LOSS OF 405 MILLION OR 456 A SHARE IN 1992 THE 1992 PERIOD INCLUDED A 764 MILLION CHARGE TO REFLECT THE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING RELATED TO RETIREE BENEFITS AND INCOME TAXES REVENUE WAS 684 BILLION COMPARED WITH 686 BILLION THE YEAR BEFORE 9307300013 930730 THURSDAY'S MARKETS INTEREST RATES FALL SHARPLY STOCKS CLIMB BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL INTEREST RATES TUMBLED IN REACTION TO NEWS THAT THE ECONOMY IS DISAPPOINTINGLY WEAK AND THE LOWER RATES PUSHED STOCKS HIGHER BONDS STARTED CLIMBING AFTER THE COMMERCE DEPARTMENT REPORTED THAT THE ECONOMY GREW AT AN ANEMIC 16 IN THE SECOND QUARTER FAR BELOW ANALYSTS' EXPECTATIONS THE RALLY ACCELERATED AS FOREIGN INVESTORS SCRAMBLED TO BUY US TREASURY BONDS AS EUROPE'S EXCHANGE RATE MECHANISM CAME UNDER SIEGE AGAIN BY LATE AFTERNOON IN NEW YORK THE YIELD ON THE TREASURY'S 30YEAR BOND HAD PLUNGED TO 657 FROM 665 CLEARLY THE GROSS DOMESTIC PRODUCT FIGURES WERE VERY CONSTRUCTIVE BECAUSE THEY SHOWED THE BEST OF ALL POSSIBLE WORLDS FOR THE BOND MARKET SAID WILLIAM SULLIVAN MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS MR SULLIVAN SAID THE DATA SHOWED THAT THE SLUGGISH ECONOMY MEANS INFLATION THE BANE OF FIXEDINCOME INVESTORS ISN'T A PROBLEM MORE IMPORTANTLY THE WEAK ECONOMIC REPORT DIMINISHED THE LIKELIHOOD THAT THE FEDERAL RESERVE WOULD RAISE SHORTTERM INTEREST RATES SOON ONLY A WEEK AGO BOND PRICES HAD PLUNGED ON FEARS THAT THE FED WOULD TIGHTEN MONETARY POLICY IN THE NEXT FEW MONTHS CLEARLY THE FED IS NOT IN A POSITION TO TIGHTEN MONETARY POLICY IN AN ENVIRONMENT WHERE GROWTH IS BELOW TARGETS SAID MR SULLIVAN ELAINE GARZARELLI STOCK MARKET STRATEGIST AT SHEARSON LEHMAN BROTHERS SAID THE DROP IN INTEREST RATES ONLY MAKES HER MORE BULLISH ABOUT STOCKS EVERY TIME INTEREST RATES FALL YOU PUSH THE BULL MARKET IN STOCKS OUT FURTHER SHE SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 082 TO 10803 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2608 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1234 ISSUES ADVANCED AND 730 DECLINED BOND PRICES SOARED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1 1/4 POINTS OR ALMOST 1250 FOR EACH 1000 FACE AMOUNT 9307300011 930730 MARKETING & MEDIA KIA MOTORS SELECTS AD AGENCY PREPARING TO ENTER US MARKET IRVINE CALIF KIA MOTORS CORP SAID IT NAMED SAN FRANCISCO ADVERTISING AGENCY GOLDBERG MOSER O'NEILL TO HANDLE ITS 30 MILLION ACCOUNT SIGNALING THAT THE KOREAN AUTO MAKER IS SERIOUS ABOUT BREAKING INTO THE US VEHICLE MARKET KIA IS STEPPING INTO A FIERCELY COMPETITIVE US MARKET BRIMMING WITH MORE THAN 400 DIFFERENT VEHICLE MODELS THE INTENSE COMPETITION HAS ALREADY DRIVEN OUT SUCH BRAND LIGHTWEIGHTS AS DAIHATSU YUGO STERLING AND PEUGEOT OVER THE PAST COUPLE OF YEARS AND ISUZU MOTORS LTD STOPPED SELLING PASSENGER CARS IN THE US CONCENTRATING ALL ITS EFFORTS ON THE MORE PROFITABLE LIGHTTRUCK MARKET HYUNDAI MOTOR CO THE ONLY OTHER KOREAN AUTO MAKER SELLING CARS IN THE US IS STRUGGLING TO OVERCOME A REPUTATION FOR BUILDING POORQUALITY VEHICLES BUT KIA SAID THE HURDLES AREN'T INSURMOUNTABLE IN ORDER FOR KIA TO SUCCEED IN THE US WE WILL HAVE TO SELL A QUALITY PRODUCT IN A MANNER THAT DISRUPTS THE TRADITIONAL METHODS THAT COMPANIES HAVE USED TO SELL CARS AND THE WAY THAT PEOPLE BUY CARS KIA'S PRODUCT WILL BE AIMED AT THE LOWEREND OF THE MARKET LATER THIS YEAR KIA PLANS TO LAUNCH SEPHIA A FOURDOOR SEDAN THAT WILL BE PRICED BELOW 9000 NEXT SUMMER IT PLANS TO LAUNCH A FOURDOOR SPORT UTILITY VEHICLE PRICED IN THE MIDTEENS WHEN YOU LOOK AT WHAT THE YEN HAS DONE TO THE JAPANESE CAR PRICES THERE IS NO LONGER A REAL ENTRYLEVELPRICED PRODUCT CAR IN THE COMPACT SEDAN SEGMENT A KIA SPOKESMAN SAID KIA PLANS TO SELL 30000 VEHICLES IN THE US NEXT YEAR PRIMARILY IN THE WESTERN STATES IT IS STILL NEGOTIATING WITH AUTO DEALERS BUT HOPES TO HAVE 50 DEALERSHIPS SIGNED UP BY END OF THE YEAR 9307300010 930730 SANTA FE ENERGY PLANS TO SWAP GAS SYSTEM FOR STAKE IN HADSON HOUSTON SANTA FE ENERGY RESOURCES INC SAID IT AGREED TO SELL ITS NATURALGAS GATHERING AND PROCESSING SYSTEM TO HADSON CORP FOR 52 MILLION OF PREFERRED STOCK AND 40 OF HADSON'S COMMON SHARES ONCE HADSON COMPLETES A COMPLEX FINANCIAL RESTRUCTURING SANTA FE AN OIL AND GAS EXPLORATION COMPANY ALSO WILL BE ABLE TO SELECT HALF THE DIRECTORS OF HADSON'S BOARD SANTA FE AGREED FOR SEVEN YEARS TO SELL ESSENTIALLY ALL OF ITS NATURALGAS PRODUCTION TO HADSON'S ENLARGED GAS MARKETING SYSTEM FOR THE FIRST TWO YEARS THE 11 1/4 SENIOR PREFERRED STOCK SANTA FE WILL RECEIVE PAYS A DIVIDEND OF MORE PREFERRED SHARES AND THEN WILL PAY CASH WEIGHED DOWN BY DEBT AND OVEROPTIMISM ON NATURALGAS PRICES HADSON EMERGED FROM BANKRUPTCYLAW REORGANIZATION LAST YEAR WITH AN ARRAY OF NOTES PREFERRED STOCK ISSUES AND CLASSES OF COMMON STOCK OKLAHOMA CITYBASED HADSON SAID IT RECEIVED A COMMITMENT FROM PRUDENTIAL INSURANCE CO OF AMERICA TO EXCHANGE 729 MILLION OF HADSON DEBT HELD BY PRUDENTIAL AS WELL AS HOLDINGS OF CLASS B AND CLASS C HADSON COMMON STOCK FOR A NEW ISSUE OF 564 MILLION OF 8 SENIOR SECURED NOTES DUE 2003 AND 94 MILLION SHARES OF HADSON COMMON STOCK THAT WOULD LEAVE PRUDENTIAL WITH ABOUT 24 OF HADSON'S SHARES IF THE RESTRUCTURING GOES THROUGH AS ANTICIPATED HADSON SAID THEN HADSON PLANS TO BUY BACK OVER TIME AS MUCH AS 90 OF PRUDENTIAL'S HADSON STOCK THE AGREEMENTS WHICH ARE SUBJECT TO SHAREHOLDER APPROVAL ALSO COULD INCLUDE SWAPPING OTHER PREFERRED AND COMMON SHARES FOR NEW HADSON COMMON STOCK 9307300009 930730 FOUR THYSSEN OFFICIALS ARRESTED OVER ALLEGED EXPORT OF TOXIC WASTE SPECIAL TO THE WALL STREET JOURNAL FRANKFURT FOUR SENIOR MANAGERS OF GERMAN RECYCLING COMPANY THYSSEN SONNENBERG GMBH HAVE BEEN ARRESTED IN AN INVESTIGATION OF THE ALLEGED ILLEGAL EXPORT OF TOXIC WASTE MATERIALS THYSSEN SONNENBERG IS A UNIT OF TRADING COMPANY THYSSEN HANDELSUNION AG WHICH IN TURN IS A SUBSIDIARY OF ENGINEERING CONGLOMERATE THYSSEN AG A SPOKESMAN FOR THE FRANKFURT DISTRICT ATTORNEY'S OFFICE SAID TWO OF THE MANAGERS HAD BEEN ARRESTED IN DUESSELDORF AND TWO IN FRANKFURT WERE BEING HELD IN INVESTIGATIVE CUSTODY PENDING A DECISION BY AUTHORITIES WHETHER TO ISSUE CHARGES THE MEN ARE SUSPECTED OF ILLEGALLY EXPORTING TOXIC WASTE TO A SITE IN FRANCE IN COOPERATION WITH A FRENCHBASED COMPANY CALLED NEWELL INTERNATIONAL THE SPOKESMAN SAID THE WASTE IS SUSPECTED TO HAVE BEEN DISGUISED AS RECYCLABLE METAL SCRAP IN A STATEMENT YESTERDAY THYSSEN SONNENBERG SAID THE SUSPICIONS WERE UNFOUNDED AND WITHOUT SUBSTANCE AND THE EXPORTS IN QUESTION HAD BEEN GENUINE METAL SCRAP FOR RECYCLING FOR WHICH THE COMPANY HAD PROPER AUTHORIZATION FROM THE GERMAN AND FRENCH AUTHORITIES WE HOLD THE CHARGES AGAINST OUR COWORKERS IN THIS MATTER TO BE UNFOUNDED AND SHARE THE AUTHORITIES' CONCERN THAT THEY BE CLEARED UP QUICKLY THYSSEN SONNENBERG SAID ACCORDING TO A REPORT IN THE NEWSPAPER DIE WELT YESTERDAY AUTHORITIES ALSO SEARCHED SONNENBERG'S OFFICES IN DUESSELDORF AND THOSE OF PARENT COMPANY THYSSEN IN DUISBURG AND SEIZED DOCUMENTS DIE WELT SAID THE EXPORTS ARE SUSPECTED TO HAVE TOTALED 31000 METRIC TONS AND TO HAVE SAVED THYSSEN SONNENBERG 14 MILLION MARKS 81 MILLION IN WASTE DISPOSAL COSTS 9307300008 930708 REVIEW & OUTLOOK EDITORIAL YELTSIN AT THE SUMMIT WHEN BORIS YELTSIN MEETS WITH G7 LEADERS IN TOKYO TOMORROW THEY NO DOUBT WILL HEAR A REPETITION OF WHAT HIS KEY AIDES ARE SAYING HE WILL THANK THEM FOR THEIR FINANCIAL AID BUT ADD THAT WHAT RUSSIA REALLY NEEDS IS GREATER FREEDOM TO SELL ITS GOODS IT'S A GOOD POINT IN TODAY'S DEPRESSED WORLD TRADE IS OFTEN HARDER FOR RICH NATIONS TO DELIVER THAN AID BUT THEY SHOULD TRY THE JOURNAL'S ADI IGNATIUS GOT THE RUSSIAN MESSAGE LOUD AND CLEAR IN AN INTERVIEW IN MOSCOW THIS WEEK WITH VICE PREMIER ALEXANDER SHOKHIN HE COMPLAINED THAT ALTHOUGH THE WEST OFFERS RUSSIA FINANCIAL HELP IT ALSO MAKES IT HARD FOR RUSSIA TO EARN HARD CURRENCY MR SHOKHIN ADDED THAT THE PROPOSED 28 BILLION WESTERN AID PACKAGE FOR RUSSIA WAS ITSELF DESIGNED WITH WESTERN INTERESTS IN MIND LARGE CHUNKS CONSIST OF EXPORT CREDITS AND GUARANTEES THAT YIELD THEIR PRIMARY BENEFITS TO WESTERN COMPANIES SHIPPING GOODS TO RUSSIA REALISTICALLY THIS IS ESSENTIAL TO WINNING POLITICAL SUPPORT FOR SUCH PROGRAMS THE AMERICAN PUBLIC IS SKEPTICAL AT THIS POINT AND TO HAVE A CHANCE IN CONGRESS THE PACKAGE HAD TO CONTAIN HONEY FOR AMERICA'S INDUSTRIAL AND FARM LOBBIES THE TRADE ISSUE IS MORE COMPLICATED RUSSIA'S DEMAND FOR EASIER ACCESS TO MARKETS COMES AT A TIME WHEN GLOBAL RECESSION HAS HEIGHTENED TRADE TENSIONS AS FOR RUSSIA ITSELF THERE ALREADY HAVE BEEN COMPLAINTS IN WESTERN NATIONS THAT RUSSIA IS DUMPING ALUMINUM DRIVING DOWN THE WORLD PRICE AND THEREBY DAMAGING WESTERN PRODUCERS RUSSIA'S EXPORTABLE SURPLUSES SUCH AS THEY ARE MAINLY ARE COMMODITIES AND IT'S HERE THAT PROTECTIONIST PRESSURES ARE INTENSE THESE NARROW SHORTTERM POLITICAL INTERESTS ASIDE THE WORLD WILL GAIN SIGNIFICANT LONGTERM BENEFITS WHEN RUSSIA HAS GREATER ACCESS TO WESTERN MARKETS IF IT DOES SELL CHEAPER ITS GOODS WILL HELP THE WEST CONTROL INFLATION MORE IMPORTANTLY RUSSIA CANNOT BECOME A CONSUMER FOR WESTERN GOODS UNLESS IT IS ALLOWED TO SELL ITS OWN GOODS ABROAD THERE IS ONE EXCEPTION TO THIS ARGUMENT FOR FREE TRADE THAT IS NOT SO EASILY DISPATCHED THE OLD SOVIET UNION WAS A MILITARY STATE AND FOCUSED ITS RESOURCES AND TECHNOLOGY ON MILITARY HARDWARE SO RUSSIA IS ALMOST ON A PAR WITH WESTERN PRODUCERS IN SOME FIELDS OF WEAPONRY ITS COSTS ARE SIGNIFICANTLY LOWER THE MOST TROUBLING ASPECT OF ITS VIGOROUS EFFORTS TO SELL MILITARY GOODS ABROAD IS THAT RUSSIA'S HIGHTECH EQUIPMENT AND TECHNOLOGIES WILL FALL INTO THE WRONG HANDS THE WEST IS PROPERLY CONCERNED THAT RUSSIAN TECHNOLOGY FOR WEAPONS THAT HAVE THE POTENTIAL TO THREATEN THE WEST SUCH AS LONGRANGE ROCKETS WILL FALL INTO THE HANDS OF AN IRAN OR LIBYA THERE ARE LIKELY TO BE LESS CONSTRAINTS ON THE BEHAVIOR OF THESE REGIMES THAN THERE EVER WAS ON THE SOVIET UNION DESPITE ALL THESE PROBLEMS THE CLINTON ADMINISTRATION TO ITS CREDIT IS TRYING TO KEEP USRUSSIAN RELATIONS UPBEAT AIDES TO THE AMERICAN PRESIDENT AT THE SUMMIT WERE PRAISING THE PROGRESS MR YELTSIN IS MAKING ON ECONOMIC AND POLITICAL REFORM AND ARGUING THAT NOW IS A GOOD TIME FOR WESTERN COMPANIES TO INVEST IN RUSSIA THAT IS SOMETHING FOR THE RUSSIANS THEMSELVES TO CONSIDER THEIR BEST CHANCE FOR ENTRY INTO THE WORLD COMMUNITY IS TO ENCOURAGE FOREIGN INVESTMENT THROUGH STRONGER LEGAL PROTECTIONS OF FOREIGN RIGHTS AND PROPERTY WHEN THE WEST HAS A STRONGER STAKE IN RUSSIA THE RUSSIANS WILL HAVE BETTER ACCESS TO THE WEST BOTH SIDES WILL BENEFIT AND THAT INDEED WILL BE FAR MORE SUSTAINABLE THAN THE PRESENT EFFORTS AT RUSSIAN AID SEE RELATED LETTER LETTERS TO THE EDITOR IN TRADE RUSSIA IS ITS OWN WORST ENEMY WSJ JULY 30 1993 9307080041 YY93 MM07 9307300007 930730 LETTERS TO THE EDITOR NAFTA FOR A BETTER ENVIRONMENT SIERRA CLUB CHAIRMAN MIKE MCCLOSKEY IS A LEADING ENVIRONMENTALIST BUT I MUST DISAGREE WITH HIS JULY 8 COUNTERPOINT RESCUE NAFTA SAFEGUARD THE ENVIRONMENT WHICH MISSES THE FUNDAMENTAL TRUTH ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT AS A COALITION OF MORE THAN 90 OF US ENVIRONMENTAL GROUP MEMBERS HAS CONCLUDED NAFTA WILL HELP THE ENVIRONMENT WITHOUT NAFTA AND THE ECONOMIC GROWTH PROJECTED TO FOLLOW FROM IT THERE WOULD BE FEWER FINANCIAL RESOURCES IN MEXICO NOT TO MENTION IN THE US FOR ENVIRONMENTAL IMPROVEMENT THERE WOULD BE NO COORDINATED PROGRAM TO GUIDE THESE IMPROVEMENTS NOR THE ADDED IMPETUS FOR MEXICO TO CONTINUE INCREASING EXPENDITURES ON THE ENVIRONMENT AND STRENGTHENING ENFORCEMENT AND THERE WOULD BE LESS INCENTIVE IN THE US CONGRESS DURING TOUGH FISCAL TIMES TO MAKE THE INVESTMENT TO HELP CLEAN UP A BORDER AREA THAT HAS SUFFERED TOO LONG FROM POLLUTION AND INADEQUATE WATER AND SEWER FACILITIES I DISAGREE WITH MR MCCLOSKEY ABOUT THE LACK OF A SERIOUS BORDER CLEANUP PLAN IN FEBRUARY 1992 THE US AND MEXICO RELEASED THE INTEGRATED ENVIRONMENTAL PLAN FOR THE MEXICANUS BORDER AREA FIRST STAGE 19921994 THE MOST AMBITIOUS BILATERAL ENVIRONMENTAL PLAN EVER NEGOTIATED BY TWO COUNTRIES SHARING A COMMON BORDER AND NONE OF THE COST ESTIMATES FOR THIS CLEANUP THAT I'VE SEEN COMES CLOSE TO THE 20 BILLION MR MCCLOSKEY CITES MEXICO HAS EARMARKED SEVERAL HUNDRED MILLION DOLLARS FOR A MULTIYEAR ENVIRONMENTAL IMPROVEMENT PROGRAM AND PRESIDENTS BUSH AND CLINTON EACH PROPOSED MORE THAN 200 MILLION A YEAR FOR BORDER CLEANUP I CANNOT ACCEPT MR MCCLOSKEY'S CLAIMS OF LACK OF ENVIRONMENTAL SAFEGUARDS AND INPUT IN THE NAFTA PROCESS AN EXTENSIVE ENVIRONMENTAL REVIEW WAS UNDERTAKEN INCLUDING PUBLIC HEARINGS IN 16 CITIES ALONG THE BORDER AND SOLICITATION OF PUBLIC COMMENTS ON DRAFT DOCUMENTS THE ENVIRONMENTAL COMMUNITY HAS BEEN CONSULTED EVERY STEP OF THE WAY HAS BEEN REPRESENTED ON THE KEY ADVISORY COMMITTEES TO THE US TRADE REPRESENTATIVE AND HAS INFLUENCED THE TREATY TEXT AND THE SIDE AGREEMENTS STILL BEING NEGOTIATED THE NAFTA DRAFT PRESERVES THE RIGHT OF EACH COUNTRY AND ITS JURISDICTIONS TO MAINTAIN EXISTING HEALTH SAFETY AND ENVIRONMENTAL STANDARDS AND TO ENACT TOUGHER STANDARDS WHERE RISK OR SCIENTIFIC FACTORS WARRANT IT ALSO ENCOURAGES HARMONIZATION OF STANDARDS UPWARD CONTRARY TO MR MCCLOSKEY'S ASSERTION THAT NAFTA WOULD PUSH US TOWARD WEAKENING OUR LAWS MR MCCLOSKEY IS WRONG THAT MEXICO IS STONEWALLING PROPOSALS TO ASSURE THAT IT ENFORCES ITS ENVIRONMENTAL LAWS MEXICO'S LAWS NOW ARE QUITE STRONG AND FOR NEW DEVELOPMENT NAFTA WOULD PRECLUDE ANY OF OUR COUNTRIES FROM RELAXING ENVIRONMENTAL STANDARDS TO ATTRACT INDUSTRY IN THE PAST LAX ENFORCEMENT IN MEXICO WAS A PROBLEM BUT IN 1992 MEXICO MADE MORE THAN 1000 INSPECTIONS IN THE BORDER REGION RESULTING IN SOME 940 CITATIONS FOR FAILURE TO COMPLY ABOUT 120 TEMPORARY OR PARTIAL SHUTDOWNS AND MORE THAN 20 PERMANENT CLOSURES MEXICO HAS DONE MORE AND SPENT MORE ON ENVIRONMENTAL CONCERNS THAN ANY OTHER DEVELOPING COUNTRY MR MCCLOSKEY IS RIGHT ABOUT ONE POINT TIME IS RUNNING SHORT SOON MEXICO WILL BE PREOCCUPIED BY ITS SUMMER 1994 ELECTION NOW IS THE TIME TO COMPLETE WORK ON THE SIDE AGREEMENTS TO ESTABLISH THE NORTH AMERICAN COMMISSION ON THE ENVIRONMENT AND ADDITIONAL MECHANISMS AND GET THE TREATY TO CONGRESS FOR A VOTE THIS YEAR MR REILLY WAS ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY FEBRUARY 1989 THROUGH JANUARY 1993 HE IS ALSO A SENIOR FELLOW AT THE WORLD WILDLIFE FUND 9307300006 930730 WHO'S NEWS DART CHAIRMAN HAFT ADVANCES ONE SON AFTER OUSTING ANOTHER NEW YORK DART GROUP CORP CHAIRMAN HERBERT HAFT HAS FOUND A NEW FAVORITE SON RONALD A MONTH AFTER OUSTING HIS WOULDBE HEIR ROBERT FROM ALL OF THE FAMILY BUSINESSES THE ELDER MR HAFT LATE YESTERDAY ANNOUNCED HE HAD NAMED RONALD 34 YEARS OLD TO THE BOARDS OF DART AND THREE COMPANIES THAT IT CONTROLS RONALD HEADS A REAL ESTATE COMPANY OWNED BY THE FAMILY THE APPOINTMENT IS YET ANOTHER BIZARRE TURN IN THE SUCCESSION BATTLE BETEEN HERBERT HAFT 72 AND ROBERT 40 SINCE EARLY JUNE AFTER HERBERT HAFT CHANGED HIS MIND ABOUT STEPPING DOWN FROM DART BASED IN LANDOVER MD HE TURNED ON ROBERT WAGING A BITTER PUBLIC BATTLE TO EJECT HIM FROM THE FAMILY BUSINESSES AND DISCREDIT HIM HE ALSO CUT OFF ROBERT'S SALARY DESPITE HIS LONGTERM MULTIMILLIONDOLLAR EMPLOYMENT CONTRACT LAST MONTH HERBERT HAFT ELECTED NEW DIRECTORS AT DART CROWN BOOKS CORP AND TRAK AUTO CORP OUSTING HIS WIFE GLORIA AS WELL AS ROBERT AND OTHER DIRECTORS WHO SUPPORTED THEM HE ALSO FIRED ROBERT FROM HIS JOBS AS DART PRESIDENT AND CHAIRMAN OF CROWN A COMPANY THAT ROBERT FOUNDED IN CROWN BOOKS NEWSPAPER ADS ROBERT'S PICTURE HAS BEEN REMOVED IN A POINTED SNUB AGAINST ROBERT HERBERT HAFT'S PRESS RELEASE TOUTED RONALD'S BUSINESS ACUMEN DECLARING THAT A RECENT SURVEY DECLARED REAL ESTATE COMPANY COMBINED PROPERTIES THE FOURTH BEST SHOPPING CENTER OPERATION NATIONALLY DUE TO RONALD'S LEADERSHIP AND HERBERT HAFT CALLED HIS NEWLY ANOINTED SON AN UNSELFISH BUILDER OF VALUE MR HAFT HAS ACCUSED ROBERT OF A POWER MOVE IN SEEKING A MORE PROMINENT ROLE IN THE COMPANIES AND EASING OUT HIS FATHER RONALD WAS ALSO PUT ON THE BOARD OF CLOSELY HELD SHOPPERS FOOD WAREHOUSE 9307300005 930730 ALLIANZ AG HOLDING SAYS GROUP EARNINGS DROPPED 18 IN 1992 SPECIAL TO THE WALL STREET JOURNAL MUNICH GERMANY ALLIANZ AG HOLDING EUROPE'S LARGEST INSURANCE GROUP SAID ITS 1992 GROUP NET INCOME DROPPED 18 DESPITE A 12 SURGE IN PREMIUM INCOME GROUP PROFIT FELL TO 8579 MILLION MARKS 4992 MILLION FROM 105 BILLION MARKS DESPITE A 60 INCREASE IN THE GROUP'S PERSHARE EARNINGS BASED ON A FORMULA DEVISED BY THE GERMAN ASSOCIATION OF FINANCIAL ANALYSTS THAT EXCLUDES EXTRAORDINARY ITEMS AND ALLOCATIONS TO A COMPANY'S RESERVES UNDER THAT PLAN THE RESULTS CLIMBED TO 2490 MARKS A SHARE IN 1992 FROM 1560 MARKS IN 1991 THE MUNICHBASED INSURER BLAMED THE DROP IN NET INCOME ON THE SECOND CONSECUTIVE YEAR OF LOSSES IN ITS UNDERWRITING BUSINESS THE UNDERWRITING LOSSES BEGAN IN 1991 WITH THE FIRSTTIME CONSOLIDATION OF USBASED FIREMAN'S FUND INSURANCE CO THE LOSS IN THE US OPERATIONS RELATES TO THE FUNDAMENTALS OF THE US INSURANCE BUSINESS ALLIANZ SOURCES SAID IT IS UNUSUAL TO MAKE AN UNDERWRITING PROFIT IN THE US EARNINGS ALSO DROPPED AT ALLIANZ BECAUSE OF A HIGHER TAX BILL AND A DROP IN INCOME FROM ITS MASSIVE FINANCIAL PORTFOLIO INVESTMENT INCOME FELL 72 TO 330 BILLION MARKS IN 1992 FROM 356 BILLION MARKS IN THE PREVIOUS YEAR BECAUSE OF THE POOL OF FINANCIAL ASSETS IT HOLDS AS EUROPE'S LARGEST INSURER ALLIANZ RECEIVES A SIGNIFICANT PORTION OF ITS EARNINGS THROUGH ITS INVESTMENT PORTFOLIO ALSO CALLED NONUNDERWRITING INCOME INVESTMENT INCOME DOESN'T INCLUDE PENSION OPERATIONS AND DEPRECIATION GROUPWIDE PREMIUM INCOME ROSE TO 547 BILLION MARKS LAST YEAR FROM 487 BILLION MARKS LOOKING AHEAD TO THE FULL YEAR ALLIANZ ALSO SAID IT SEES A 10 RISE IN 1993 PREMIUM INCOME TO 60 BILLION MARKS FROM THE 547 BILLION MARKS IN 1992 9307300004 930730 IMPERIAL CHEMICAL NET FROM ONGOING LINES ROSE 14 IN 2ND PERIOD SPECIAL TO THE WALL STREET JOURNAL LONDON IMPERIAL CHEMICAL INDUSTRIES PLC SAID ITS PROFIT FROM CONTINUING OPERATIONS BEFORE EXCEPTIONAL ITEMS AND TAX ROSE 14 IN THE SECOND QUARTER OF 1993 AND WAS UP 14 FOR THE FIRST HALF EARNINGS FROM CONTINUING OPERATIONS ROSE TO 96 MILLION 1435 MILLION FROM 84 MILLION WHILE SALES CLIMBED 99 TO 209 BILLION FROM 190 BILLION THE INTERIM RESULT IS THE FIRST REPORTED BY THE CHEMICALS GROUP SINCE IT SPLIT OFF ITS PHARMACEUTICAL ACTIVITY AS ZENECA GROUP PLC ON JUNE 1 ACCORDINGLY THE DISCONTINUED OPERATIONS ON ITS ACCOUNTS ARE DESIGNED TO FACTOR OUT ZENECA'S CONTRIBUTION OVER THE FIRST FIVE MONTHS ICI CHAIRMAN DENYS HENDERSON SAID IT IS DIFFICULT TO SEE ANY IMPROVED TREND IN THE WORLD ECONOMY OVER THE NEXT SIX MONTHS GIVEN WEAK BUSINESS AND CONSUMER CONFIDENCE IN MANY KEY INDUSTRIAL COUNTRIES GROWTH IN THE US REMAINS SLOW WITH LITTLE PROSPECT OF A WORTHWHILE ACCELERATION IN THE SECOND HALF HE SAID AND IN CONTINENTAL EUROPE WHILST THE SHARP FALLS IN DEMAND AND ACTIVITY APPEAR TO HAVE ENDED THERE IS NO EVIDENCE OF ANY RECOVERY AND PRICES REMAIN UNDER PRESSURE MR HENDERSON POINTED TO ONE MILDLY BRIGHT SPOT IN THE UK WHERE THE ECONOMY MADE SOME PROGRESS IN THE SECOND QUARTER HE DIDN'T ELABORATE ON UK PROSPECTS FOR THE SECOND HALF OF THE YEAR MR HENDERSON POINTED OUT THAT A CONSIDERABLE PART OF THE SALES GAIN REFLECTED STERLING'S DROP AFTER IT LEFT THE EUROPEAN EXCHANGE RATE MECHANISM THE DROP INCREASES THE HOMECURRENCY EQUIVALENT OF THE GROUP'S NONSTERLING TURNOVER ICI ALSO SAID ITS NET INTEREST BILL FOR CONTINUING OPERATIONS CLIMBED TO 42 MILLION IN THE HALF FROM 23 MILLION A YEAR EARLIER 9307300003 930730 INTERESTRATE BLOOPERS BY PAUL CRAIG ROBERTS THE RATIONALE ADVANCED BY PRESIDENT CLINTON AND MEMBERS OF HIS ADMINISTRATION FOR HIS TROUBLED TAXINCREASE PLAN IS THAT THE TAX INCREASES WILL PAY FOR THEMSELVES IN LOWER INTEREST RATES THIS IS PATENTLY WRONG EVEN BY THE ADMINISTRATION'S OWN ACCOUNTING THE ADMINISTRATION'S ECONOMIC ASSUMPTIONS SET OUT IN A VISION OF CHANGE FOR AMERICA THE ECONOMIC PROGRAM PUBLISHED IN FEBRUARY AT THE TIME OF THE STATE OF THE UNION SPEECH SHOW A RISING PATH OF SHORTTERM INTEREST RATES THE PLAN PROJECTS 91DAY TREASURY BILL RATES TO BE 37 IN 1993 43 IN 1994 47 IN 1995 48 IN 1996 49 IN 1997 AND 5 IN 1998 THE PLAN ALSO PROJECTS A RISING GROSS NATIONAL PRODUCT DEFLATOR AND A RISING CONSUMER PRICE INDEX DESPITE THE HIGHER PROJECTED INFLATION THE PLAN FORESEES A SLIGHT DECLINE IN THE 10YEAR TREASURY NOTE RATE TO 65 IN 1996 FROM 67 IN 1993 THESE NUMBERS WERE SLIGHTLY ALTERED IN THE APRIL 8 BUDGET THE INFLATION RATE WAS REVISED DOWN AND BECAME FLAT THE LONG BOND RATE ROSE SLIGHTLY IN 1995 BUT OTHERWISE REMAINED UNCHANGED THE SHORTTERM INTEREST RATE STARTS FROM A LOWER NUMBER BUT THE PATTERN REMAINS UNALTERED RISING TO 49 IN 1998 FROM 32 IN 1993 CONSIDERING THE MIX OF SHORT AND LONGTERM INSTRUMENTS IN TREASURY FINANCINGS AND THE ADMINISTRATION'S SHIFT TO SHORTTERM SECURITIES MR CLINTON'S PLAN EXPECTS AVERAGE BORROWING COSTS TO RISE OBVIOUSLY HIS CLAIM THAT HIS TAX INCREASE WILL LOWER INTEREST RATES IS IN CONFLICT WITH THE INTERESTRATE PROJECTIONS IN HIS OWN ECONOMIC PLAN RECENTLY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN STRESSED THAT REAL SHORTTERM INTEREST RATES ARE NEARLY ZERO AND CANNOT BE EXPECTED TO STAY SO LOW AFTER TAXES THE REAL COST TO A BUSINESS BORROWER OF THE 6 PRIME RATE IS LESS THAN 1 WITH REAL INTEREST COSTS SO LOW IT IS UNREALISTIC TO EXPECT MUCH KICK TO THE ECONOMY FROM FURTHER DECLINES IN INTEREST RATES CERTAINLY THERE IS NO ANALYTICAL OR EMPIRICAL BASIS FOR THE ADMINISTRATION'S BELIEF THAT A FALL IN INTEREST RATES WILL BOOST THE ECONOMY MORE THAN HIGHER TAXES WILL DEFLATE IT MR CLINTON'S PROPOSED HIGHER TAX RATES ON CORPORATE AND PERSONAL INCOME INCLUDING THE INDIVIDUAL INCOME SURTAX TAKE ANOTHER 16 BITE OUT OF INVESTMENT EARNINGS MR CLINTON'S PLAN OFFERS NO CONCEIVABLE FALL IN INTEREST RATES THAT COULD OFFSET A 16 DECLINE IN THE RATE OF RETURN TO INVESTMENT THE INTERESTRATE ARGUMENT THAT IS THE BASIS OF MR CLINTON'S ECONOMIC PACKAGE MAKES NO ECONOMIC SENSE AND IS NOT SUPPORTED BY THE ASSUMPTIONS USED IN THE ADMINISTRATION'S PLAN THERE ARE OTHER SIGNS OF CONFUSION RECENTLY FOR EXAMPLE THE ADMINISTRATION HAS QUIETLY BACKED AWAY FROM MR CLINTON'S CLAIM THAT HIGHER TAXES ARE GOOD FOR ECONOMIC GROWTH WITH THE PROSPECTIVE TAX INCREASE RETROACTIVE TO MARCH OF THIS YEAR THE ADMINISTRATION REDUCED ITS REAL ECONOMIC GROWTH FORECAST FOR 1993 TO 25 FROM 31 SINCE HIS TAX PACKAGE IS PENDING MR CLINTON HAS WITHHELD THE BUDGETARY IMPACT OF THIS REDUCTION FROM CONGRESS HOWEVER THE IMPACT IS EASY TO CALCULATE USING THE ADMINISTRATION'S BUDGET RULES THE 06 PERCENTAGEPOINT REDUCTION IN REAL ECONOMIC GROWTH WIDENS THE BUDGET DEFICIT BY 65 BILLION OVER THE 199398 PERIOD IF THIS SLOWDOWN CONTINUES THROUGHOUT THE PERIOD THE CUMULATIVE INCREASE IN THE DEFICIT WILL BE 208 BILLION IN SHORT MR CLINTON'S TAX INCREASE WILL HURT ECONOMIC GROWTH BY MORE THAN THE ADMINISTRATION EXPECTS IF INTEREST RATES DO FALL IT WON'T BE BECAUSE THE DEFICIT IS UNDER CONTROL IT WILL BE BECAUSE CLINTONOMICS HAS TANKED THE ECONOMY AND THE DEFICIT HAS EXPLODED MR ROBERTS IS CHAIRMAN OF THE INSTITUTE FOR POLITICAL ECONOMY IN WASHINGTON DC 9307300002 930730 WORLD MARKETS MOST EUROPEAN MARKETS SURGE ON RATE MOVE BY GERMANY POLITICS IGNITES 32 TOKYO RALLY A WALL STREET JOURNAL NEWS ROUNDUP MOST EUROPEAN STOCK MARKETS REGISTERED HEALTHY GAINS YESTERDAY WHEN GERMANY'S CENTRAL BANK DECIDED TO CUT JUST ONE OF ITS TWO IMPORTANT INTEREST RATES THAT LIMITED MOVE BY THE BUNDESBANK COULD KILL THE CONTINENT'S MONETARY SYSTEM CLEARING THE WAY FOR EUROPEAN GOVERNMENTS TO LOWER THEIR OWN RATES TO SPUR THEIR ECONOMIES BUT PRICES ON SOME EXCHANGES WERE REINED IN ON DISAPPOINTMENT THAT THE BUNDESBANK DIDN'T CUT ITS DISCOUNT RATE THE CENTRAL BANK'S DECISION CAME AFTER THE CLOSE OF TRADING IN FRANKFURT WHERE STOCKS ENDED LITTLE CHANGED BUT IN THE FINAL HOUR OF THE LONDON SESSION STOCKS POWERED AHEAD 12 ON OPTIMISM THAT THE BASIS FOR A SUSTAINABLE RALLY WAS FINALLY IN PLACE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10803 UP 082 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND THE ASIA/PACIFIC REGION AND A DROP IN EUROPEAN MARKETS PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14805 UP 581 OR 41 WITH HOMESTAKE MINING OF THE US POSTING A 76 GAIN IN ITS LOCAL CURRENCY OIL FIELD EQUIPMENT STOCKS TRAILED AT 11823 DOWN 078 OR 07 WITH BAKER HUGHES OF THE US SLIDING 28 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX JUMPED 334 POINTS TO 29176 THE FT 30STOCK INDEX CLIMBED 301 POINTS OR 13 TO 23078 VOLUME WAS 6918 MILLION SHARES COMPARED WITH 690 MILLION SHARES IN THE PREVIOUS DAY ABOUT TWOTHIRDS OF THE FT 100'S GAIN CAME IN THE FINAL HOUR OF TRADING AND THE MARKET ENDED ON THE HIGHS OF THE DAY EUROPE'S GAINS WERE DRIVEN BY EXPECTATIONS THAT THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM WAS DEAD AS THE BUNDESBANK FAILED TO RESCUE IT BY CUTTING GERMAN RATES ENOUGH TO WEAKEN THE STRONG MARK INVESTORS CONCLUDED THAT OTHER EUROPEAN GOVERNMENTS WON'T BE ABLE TO SUPPORT THEIR COLLAPSING CURRENCIES AT THE FIXED RATE REQUIRED UNDER THE ERM THEY SPECULATED THAT THE SYSTEM WILL BE SCRAPPED AND THAT GOVERNMENTS THEN WILL BE FREE TO CUT INTEREST RATES AN ADDED BENEFIT EMERGED FOR THE LONDON BOURSE AS THE BRITISH POUND IS NO LONGER A MEMBER OF THE ERM THAT CURRENCY DOESN'T FACE ANY RISK OF DEVALUATION THIS PROMPTED A RUSH FOR LONDON STOCKS BY US AND EUROPEAN INVESTORS IN FRANKFURT THE DAX 30STOCK INDEX WHICH LOST 1132 POINTS WEDNESDAY SLIPPED 021 POINT TO 183370 PRICES BARELY MOVED AFTER IT BECAME CLEAR THE BUNDESBANK'S DECISION ON RATES WOULD COME AFTER THE MARKET CLOSED IN PARIS STOCKS JUMPED 23 AS SPECULATION ABOUT A FRENCH FRANC DEVALUATION WAS REKINDLED WHEN THE BUNDESBANK LEFT ITS DISCOUNT RATE UNCHANGED AS THAT APPEARED TO SET THE STAGE FOR EITHER A DEVALUATION OF THE FRENCH CURRENCY OR THE COLLAPSE OF THE ERM THE MARKET'S MAIN INDEX SOARED FROM THE DAY'S LOWS IN AMSTERDAM STOCKS RALLIED TO NEARRECORD LEVELS SUPPORTED BY SHORT COVERING FOREIGN BUYING AND A CUT IN DUTCH INTEREST RATES IN SHORT COVERING INVESTORS BUY STOCK TO REPLACE OVERSOLD POSITIONS TAKEN ON A BET THAT PRICES WOULD DECLINE IN MILAN PRICES FINISHED WITH SLIGHT GAINS BUT WERE WELL BELOW THEIR SESSION HIGHS AS INVESTORS WERE DISAPPOINTED BY THE BUNDESBANK'S DECISION TO CUT ONLY THE LOMBARD RATE SIMILARLY IN BRUSSELS WHILE THE MARKET ENDED LITTLE CHANGED STOCKS SENSITIVE TO INTEREST RATES WERE MOSTLY LOWER IN REACTION TO THE SMALLERTHANEXPECTED GERMAN RATE CUT IN MADRID HOWEVER PRICES SOARED TO A NEW HIGH FOR THE YEAR BECAUSE INVESTORS WERE CONVINCED THAT THE BUNDESBANK'S DECISION WILL FORCE THE COLLAPSE OF THE ERM SOON WITHOUT ERM RESTRICTIONS SPAIN COULD LOWER ITS 11 BENCHMARK INTEREST RATE TO JUMPSTART ITS DROOPY ECONOMY STOCKHOLM SHARES ROSE TO A RECORD FOR THE YEAR PACED MAINLY BY REAL ESTATE AND CONSTRUCTIONS ISSUES AS THE MARKET'S RECENT RALLY GAINED MOMENTUM FROM THE BUNDESBANK'S RATE CUT STILL SOME INVESTORS TOOK PROFITS WHEN GERMANY MAINTAINED ITS DISCOUNT RATE BUT PRICES TURNED BACK UP ON SENTIMENT THAT SWEDISH INTEREST RATES WILL FALL SOON IN ZURICH EQUITIES WERE MIXED TO SLIGHTLY LOWER ON PROFITTAKING TRIGGERED BY THE BUNDESBANK'S LIMITED MOVE IN TOKYO POTENTIAL GOOD NEWS FOR STOCKS FROM JAPAN'S DEVELOPING POLITICAL SITUATION SENT THE MARKET HIGHER THE NIKKEI 225STOCK INDEX WHICH FELL 6181 POINTS WEDNESDAY ADVANCED 62727 OR 32 TO 2045685 ON FRIDAY THE NIKKEI FELL 7221 POINTS TO CLOSE THE MORNING SESSION AT 2038464 THURSDAY'S VOLUME WAS ESTIMATED AT 350 MILLION SHARES UP SHARPLY FROM 1884 MILLION SHARES ON WEDNESDAY GAINERS SWAMPED LOSERS 100477 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 317 POINTS WEDNESDAY SWELLED 3777 OR 23 TO 166005 OVER THE PAST SEVERAL DAYS THE TOKYO MARKET HAS SHOWN LITTLE DIRECTION ON LOW VOLUME THURSDAY'S RALLY WAS SPARKED WHEN INVESTORS DECIDED THAT MORIHIRO HOSOKAWA WHO WAS CHOSEN TO LEAD THE NEW COALITION GOVERNMENT IS A GREAT FRIEND OF STOCKS GOVERNMENT BUYING OF STOCKS HAS BEEN A FUNDAMENTAL FACTOR IN THE MARKET'S HEALTH FOR ALMOST A YEAR ANALYSTS ESTIMATED THAT ALMOST SIX TRILLION YEN 5674 BILLION OF GOVERNMENT MONEY SUCH AS PENSION FUNDS WILL BE INVESTED IN STOCKS THIS YEAR BUT SOME PARTICIPANTS BELIEVED THE MARKET MAY HAVE OVERREACTED TO THE SCENARIO INVOLVING MR HOSOKAWA'S POSITION HIS COMMENTS ABOUT STOCKS WERE MADE IN A JAPANESE MAGAZINE LAST MARCH WHEN HE WAS FAR FROM POWER AND THE NIKKEI WAS 15 LOWER THE COMMENTS WERE PUBLICIZED THURSDAY BY A JAPANESE NEWS SERVICE AMONG OTHER ASIANPACIFIC MARKETS PRICES ROSE IN SYDNEY LED BY GOLD STOCKS ON SPECULATION ABOUT A DROP IN AUSTRALIAN INTEREST RATES AS WELL AS RISING GOLD PRICES AND BUYING BY OVERSEAS INVESTORS SINGAPORE STOCKS CLIMBED ON A TECHNICAL REBOUND AMONG SHIPYARD ISSUES IN TAIPEI SHARES REBOUNDED SLIGHTLY IN LIGHT TRADING ON NEWS THAT TAIWAN GOVERNMENT REGULATORS HAD DIRECTED SOME NEW INVESTMENT FUNDS TO INVEST THEIR CASH HOLDINGS IN THE MARKET BY MIDAUGUST WELLINGTON STOCKS SET A THIRD STRAIGHT RECORD HIGH FOR 1993 AS INDIVIDUAL INVESTORS CLIMBED ON THE BANDWAGON AMONG CORPORATE DEVELOPMENTS IN FRANKFURT COMMERZBANK ROSE 30 PFENNIGS TO 316 MARKS 18388 THE BANK'S FIRSTHALF OPERATING PROFIT ROSE 16 TO 392 MILLION MARKS 2281 MILLION FROM A YEAR EARLIER BOOSTED BY SMALLER REQUIREMENTS FOR RESERVES FOR LOAN LOSSES 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 9307300001 930730 LAW JUDGE DISMISSES HALF THE CHARGES AGAINST ALTMAN BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BCCIRELATED PROSECUTION OF WASHINGTON ATTORNEY ROBERT A ALTMAN WAS DEALT A SERIOUS BLOW WHEN THE JUDGE OVERSEEING THE CASE DISMISSED HALF THE EIGHT CRIMINAL CHARGES YESTERDAY'S RULING CAME FOUR MONTHS AFTER THE START OF THE TRIAL WHICH PROSECUTORS HAD HERALDED AS ONE OF THE BIGGEST BANKFRAUD CASES EVER AND THE MOST DRAMATIC FALLOUT FROM THE BANK OF CREDIT AND COMMERCE INTERNATIONAL SCANDAL PROSECUTORS CLAIM THAT MR ALTMAN AND HIS MENTOR CLARK CLIFFORD TOOK PART IN A SCHEME TO DEFRAUD BANK REGULATORS AND DEPOSITORS IN BCCI'S SECRET AND ILLEGAL TAKEOVER OF FIRST AMERICAN BANKSHARES INC A WASHINGTON BANK MR ALTMAN AND 86YEAROLD MR CLIFFORD WHOSE TRIAL WAS DELAYED BECAUSE OF HIS POOR HEALTH WERE FIRST AMERICAN'S TOP OFFICERS THE FOUR CHARGES THAT WERE THROWN OUT INCLUDE ONE THAT WAS CENTRAL TO THE PROSECUTORS' CASE THAT MR ALTMAN WAS BRIBED BY BCCI A UNIT OF BCCI HOLDINGS LUXEMBOURG SA TO GAIN CONTROL OF FIRST AMERICAN IN HIS RULING ON THE BRIBERY CHARGE NEW YORK STATE JUDGE JOHN AK BRADLEY SAID A CAREFUL REVIEW OF THE VOLUMINOUS TESTIMONY AND DOCUMENTARY EVIDENCE SUBMITTED BY THE GOVERNMENT REVEALS NO EVIDENCE OF THE EXISTENCE OF ANY AGREEMENT OR UNDERSTANDING BY ALTMAN WITH ANYONE ALONG THE LINES PLEADED IN THE INDICTMENT THE THREE OTHER CHARGES DEAL WITH ALLEGATIONS THAT MR ALTMAN FALSIFIED BUSINESS RECORDS THE JUDGE SAID HE DIDN'T HAVE JURISDICTION BECAUSE THE CHARGES DIDN'T INVOLVE ACTIVITIES IN NEW YORK MR ALTMAN STILL FACES CHARGES THAT HE LIED TO REGULATORS ABOUT THE OWNERSHIP OF FIRST AMERICAN AS WELL AS THREE COUNTS OF FALSIFYING FEDERAL RESERVE BOARD FORMS FINAL ARGUMENTS ARE EXPECTED NEXT WEEK IN THE CASE IN WHICH 45 WITNESSES TESTIFIED AND HUNDREDS OF DOCUMENTS WERE INTRODUCED AS EVIDENCE ALTHOUGH CLEARLY JUBILANT NEITHER MR ALTMAN NOR HIS ATTORNEYS WOULD COMMENT ON THE DISMISSALS EARLIER JUDGE BRADLEY TOLD THE ATTORNEYS NOT TO SPEAK TO THE NEWS MEDIA PRIVATELY MR ALTMAN'S SUPPORTERS SAID THE DISMISSALS PROVED THAT THE GOVERNMENT HAD A HOLLOW CASE ALL ALONG MR ALTMAN'S ATTORNEYS RESTED THEIR CASE WITHOUT CALLING ANY WITNESSES MR ALTMAN WHO REGULARLY WAS ACCOMPANIED IN COURT BY HIS WIFE ACTRESS LYNDA CARTER ALSO FACES THE POSSIBILITY OF FEDERAL CRIMINAL CHARGES FEDERAL CHARGES AGAINST MESSRS ALTMAN AND CLIFFORD WERE DROPPED SHORTLY AFTER THE STATE TRIAL BEGAN BUT FEDERAL PROSECUTORS IN WASHINGTON HAVE SAID REVISED CHARGES COULD BE FILED LATER DEPENDING ON THE OUTCOME OF THE NEW YORK CASE MESSRS ALTMAN AND CLIFFORD HAVE DENIED ALL CHARGES AGAINST THEM AND SAID THEY WERE DUPED BY BCCI FOR ALL THE EXCITEMENT THAT ACCOMPANIED THE START OF THE NEW YORK CASE MUCH OF THE PROSECUTION APPEARS TO HAVE FALLEN FLAT INITIALLY PROSECUTORS SAID A WITNESS WOULD TESTIFY THAT MR CLIFFORD A FORMER US SECRETARY OF DEFENSE AND EXCHAIRMAN OF FIRST AMERICAN DEVISED A MECHANISM THROUGH WHICH BCCI COULD PURCHASE THE ENTITY THAT LATER BECAME FIRST AMERICAN BUT NO SUCH TESTIMONY WAS PRESENTED GERALD MCKELVEY A SPOKESMAN FOR THE PROSECUTOR'S OFFICE SAID A SIGNIFICANT PART OF THE CASE AGAINST MR ALTMAN STILL STANDS HOW COULD THERE BE NO CASE IF THERE ARE FOUR COUNTS GOING TO THE JURY HE ASKED A FEDERAL OFFICIAL INVOLVED IN INVESTIGATING BCCI DOWNPLAYED THE DISMISSALS IT'S OBVIOUSLY UNFORTUNATE BUT IT'S NOT NECESSARILY THE END OF THE CASE EITHER SAID THE OFFICIAL WHO DIDN'T WANT TO BE IDENTIFIED I AM CONVINCED WITH EVERY ATOM OF MY BEING THAT ALTMAN COMMITTED FRAUD IN CONNECTION WITH BCCI BUT IT ISN'T AN EASY CASE TO PROVE 9307290164 930729 DIVIDEND NEWS MCKESSON CORP MCKESSON CORP SAN FRANCISCO SAID IT INCREASED ITS DIVIDEND 5 TO 42 CENTS A COMMON SHARE FROM 40 CENTS PAYABLE OCT 1 TO HOLDERS OF RECORD SEPT 1 THE DRUG DISTRIBUTOR AND MANAGED HEALTHCARE CONCERN CITED ITS RECENT STRONG FINANCIAL PERFORMANCE 9307290163 930729 GM'S NONAUTO UNITS REPORT 51 INCREASE IN 2NDQUARTER NET DETROIT COMBINED EARNINGS OF GENERAL MOTORS CORP'S NONAUTOMOTIVE SUBSIDIARIES ROSE 51 IN THE SECOND QUARTER TO 6646 MILLION COMPARED WITH YEAREARLIER RESULTS WHICH INCLUDED ACCOUNTING CHARGES THE PARENT COMPANY IS TO REPORT CONSOLIDATED RESULTS TODAY THE LATEST RESULTS FOR ELECTRONIC DATA SYSTEMS CORP GENERAL MOTORS ACCEPTANCE CORP AND GM HUGHES ELECTRONICS CORP COMPARE WITH YEAREARLIER COMBINED EARNINGS OF 4395 MILLION THE YEAREARLIER FIGURE INCLUDED A LOSS FOR GM HUGHES OF 6278 MILLION WHICH WAS RESTATED TO INCLUDE A ONETIME ACCOUNTING CHARGE FOR RETIREE BENEFITS EDS POSTED A 134 JUMP IN SECONDQUARTER EARNINGS TO 1781 MILLION FROM 1571 MILLION A YEAR AGO REVENUE ROSE 4 TO 21 BILLION FROM 2 BILLION GM CLASS E STOCK WHICH REPRESENTS A DIVIDEND INTEREST IN EDS EARNINGS ROSE 2125 TO 28125 IN LATE NEW YORK STOCK EXCHANGE TRADING THE STOCK ROSE AFTER THE COMPUTER SERVICES UNIT SAID DOUBLEDIGIT REVENUE GROWTH IS PROBABLE IN 1993 NEW BUSINESS IS BOOMING AND THE PIPELINE SEEMS HUGE SAID STEPHEN T MCCLELLAN A MERRILL LYNCH & CO ANALYST WHO FOLLOWS EDS I BELIEVE EDS CAN SUSTAIN 14 EARNINGS PER SHARE GROWTH GMAC GM'S FINANCING OPERATION SAID IT EARNED 2854 MILLION IN THE QUARTER UP 11 FROM 2824 MILLION A YEAR EARLIER GM HUGHES POSTED SECONDQUARTER NET INCOME OF 2011 MILLION COMPARED WITH THE RESTATED 6278 MILLION LOSS EXCLUDING CHARGES IN BOTH PERIODS GM HUGHES'S OPERATING PROFIT ROSE TO 3778 MILLION IN THE MOST RECENT QUARTER FROM 1525 MILLION A YEAR EARLIER GM CLASS H STOCK WHICH REPRESENTS A DIVIDEND INTEREST IN GM HUGHES ROSE 375 CENTS TO 3425 IN BIG BOARD TRADING GM COMMON STOCK WAS UNCHANGED AT 47 9307290162 930729 AUCTION FOR FIELDCREST CONTROLLING STAKE GETS BID FROM BIBB FOR UNDISCLOSED SUM BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL THOMAS C FOLEY THE CHIEF EXECUTIVE OFFICER OF BIBB CO SAID THE MACON GA TEXTILE CONCERN HAS MADE AN OFFER FOR A CONTROLLING INTEREST IN FIELDCREST CANNON INC MR FOLEY WOULDN'T DISCLOSE THE AMOUNT OR THE DETAILS OF THE BID BUT HE DID SAY THE BID INCLUDED OTHER INVESTORS HE SAID HIS COMPANY SUBMITTED THE OFFER LAST FRIDAY THE DATE HE SAID THAT HAD BEEN SET AS A DEADLINE FOR ALL FINAL BIDS FOR THE STAKE IN THE EDEN NC COMPANY ALTHOUGH THE CONTROLLING STAKE IN FIELDCREST WENT ON THE BLOCK IN JANUARY IT WASN'T PREVIOUSLY KNOWN THAT BIBB HAD ANY INTEREST IN ACQUIRING IT NOR HAD IT BEEN DISCLOSED THAT OWNERS OF THE STAKE HAVE BEEN CONDUCTING A SECRET AUCTION WHEN SPRINGS INDUSTRIES MADE AN OFFER LAST MAY VALUED AT 345 MILLION FIELDCREST OFFICIALS SAID THE STAKE WASN'T FOR SALE BUT BY THE SECRET DEADLINE FRIDAY BIBB AND SOME OTHER PARTIES HAD EXPRESSED INTEREST OR MADE BIDS FOR THE FIELDCREST STAKE ONE OF THOSE PARTIES WAS MERRILL LYNCH CAPITAL PARTNERS AN INVESTMENT SUBSIDIARY OF MERRILL LYNCH & CO MERRILL LYNCH SUBMITTED A BID FOR THE FIELDCREST STAKE ACCORDING TO AN INDIVIDUAL INVOLVED IN THE AUCTION BUT IT HAS SINCE DROPPED OUT OF THE CONTEST THE INDIVIDUAL SAID A SPOKESWOMAN FOR MERRILL LYNCH WOULDN'T COMMENT AS OF LATE LAST WEEK SPRINGS INDUSTRIES ALSO WAS STILL INVOLVED IN THE BIDDING FOR FIELDCREST ACCORDING TO ANOTHER PERSON FAMILIAR WITH THE SITUATION BUT IT IS UNCLEAR HOW MUCH SPRINGS' OFFER MIGHT HAVE CHANGED SPRINGS WOULDN'T COMMENT FIELDCREST ALSO WOULDN'T COMMENT ON THE COMPLICATED AUCTION WHICH IS BEING CONDUCTED BY SMITH BARNEY HARRIS UPHAM & CO UP FOR SALE IN THE AUCTION IS A CONTROLLING INTEREST IN AMOSKEAG CO WHICH IN TURN HOLDS 30 OF THE CAPITAL STOCK AND ABOUT 81 OF THE VOTING STOCK IN FIELDCREST A LEADING MAKER OF TOWELS AND LINENS THE AMOSKEAG STAKE IS HELD BY THE DUMAINES TRUST MANCHESTER NH WHICH WAS SET UP FOR THE FAMILY OF FC BUCK DUMAINE ONE OF THE EARLY OWNERS OF FIELDCREST CANNON IT IS UNCLEAR WHETHER JAMES M FITZGIBBONS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FIELDCREST IS CURRENTLY INVOLVED IN THE BIDDING MR FITZGIBBONS HAD PUT TOGETHER A BUYOUT BID FOR THE AMOSKEAG STAKE PREVIOUSLY ACCORDING TO A LAWSUIT FILED IN LATE MAY BY THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION WHICH REPRESENTS SOME 4500 FIELDCREST WORKERS THE LAWSUIT FILED IN US DISTRICT COURT IN NEW YORK CITY ACCUSED FIELDCREST AMOSKEAG AND THE DUMAINES TRUST OF ILLEGALLY CONDUCTING A SECRET AUCTION FOR CONTROL OF FIELDCREST K WILLIAM FRASER JR THE CHIEF FINANCIAL OFFICER FOR FIELDCREST SAID THAT THE SUIT IS WITHOUT MERIT AND THAT THE COMPANY IS CONTESTING IT SAMUEL B BARTLETT A SPOKESMAN FOR AMOSKEAG AND THE DUMAINES TRUST WAS UNAVAILABLE FOR COMMENT SEVERAL PROSPECTIVE BIDDERS FOR FIELDCREST SAID THEY HAVE BEEN ASKED TO SIGN STRINGENT CONFIDENTIALITY AGREEMENTS ANALYSTS FOLLOWING THE COMPANY SAID THEY HAVEN'T BEEN ABLE TO GET ANY DETAILS ABOUT THE NEGOTIATIONS INVOLVING THE FIELDCREST STAKE I'M JUST GETTING NOCOMMENTED TO DEATH SAID KAY C NORWOOD AN ANALYST AT INTERSTATE/JOHNSON LANE CHARLOTTE NC WHO CLOSELY FOLLOWS THE TEXTILE INDUSTRY THE STOCK PRICES OF BOTH FIELDCREST AND AMOSKEAG HAVE BEEN VOLATILE SINCE THE AMOSKEAG STAKE IN FIELDCREST WAS PUT INTO PLAY IN JANUARY AMOSKEAG SHARES WHICH CLOSED AT 17375 ON JAN 18 AND CLIMBED TO 24254 WITHIN 10 DAYS CLOSED AT 4125 UNCHANGED YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING FIELDCREST SHARES WHICH TRADED AT 1875 ON JAN 4 TO ROSE 1625 TO 26625 THE STAKE WAS PUT IN PLAY WHEN THE DUMAINES TRUST IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION ANNOUNCED PLANS TO REVIEW ITS HOLDINGS IN AMOSKEAG WITH A VIEW TO A POSSIBLE REDUCTION OR LIQUIDATION 9307290161 930729 AMERICA WEST AIRLINES EXTENDS ITS 30 FARE CUT PHOENIX AMERICA WEST AIRLINES SAID IT HAS EXTENDED AGAIN ITS FARE SALE OFFERING 30 OFF REGULAR FARES THE CARRIER PUSHING TO RAISE CASH AS IT OPERATES UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION BEGAN ITS 30OFF OFFER IN NOVEMBER AND REPEATEDLY HAS EXTENDED THE EXPIRATION DATE FOR THE SALE PREVIOUSLY TICKETS HAD TO BE PURCHASED BY YESTERDAY BUT WITH THE LATEST EXTENSION TICKETS CAN BE PURCHASED THROUGH AUG 25 TRAVEL STILL MUST BE COMPLETED BEFORE OCT 1 OTHER MAJOR CARRIERS HAVE MATCHED AMERICA WEST'S FARES IN COMPETING MARKETS THE CARRIER OFFERED SEVERAL EXAMPLES OF THE FARES INCLUDING A SALE FARE FOR ROUNDTRIP TRAVEL BETWEEN BOSTON AND LOS ANGELES AT 418 INSTEAD OF THE REGULAR 609 FARE AND BETWEEN NEWARK NJ AND SAN FRANCISCO AT 428 INSTEAD OF 609 SEVERAL RESTRICTIONS APPLY FOR THOSE OFFPEAK PRICES INCLUDING A 14DAY ADVANCE PURCHASE AND A SATURDAYNIGHT STAY 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 9307290160 930729 TECHNOLOGY STUDY SUPPORTS EARLY USE OF AZT FOR SLOWING AIDS NEW RESEARCH CONDUCTED BY A EUROPEANAUSTRALIAN AIDS RESEARCH GROUP CONTENDS THAT THE WELLCOME PLC DRUG AZT SLOWS THE PROGRESSION TO AIDS WHEN TAKEN BY PEOPLE IN EARLY STAGES OF INFECTION THE STUDY FINANCED BY THE WELLCOME FOUNDATION WHICH IS AFFILIATED WITH WELLCOME PLC IS PUBLISHED IN THIS WEEK'S EDITION OF THE NEW ENGLAND JOURNAL OF MEDICINE RESEARCHERS SAID 993 PATIENTS WITH SYMPTOMFREE HIV INFECTION WERE RANDOMLY ASSIGNED TO RECEIVE CAPSULES OF AZT OR A PLACEBO FOR TWO AND A HALF YEARS AMONG TREATED PATIENTS THE RISK OF WORSENING DISEASE WAS REDUCED TO ABOUT HALF THAT OF THE CONTROL GROUP THESE NEW FINDINGS WILL ADD FUEL TO AN ALREADY FRACTIOUS DEBATE BETWEEN US PROPONENTS OF EARLY TREATMENT AND AUTHORS OF AN ANGLOFRENCH STUDY THAT DISPUTED THE BENEFITS OF EARLY TREATMENT LAST MONTH AN EXPERT PANEL CONVENED BY THE NATIONAL INSTITUTES OF HEALTH BACKED AWAY FROM ITS PRIOR RECOMMENDATION IN FAVOR OF EARLY TREATMENT LEAVING IT SIMPLY AN OPTION TO BE DECIDED BETWEEN DOCTOR AND PATIENT IN AN EDITORIAL ACCOMPANYING THE NEW STUDY JOHN G BARTLETT OF JOHNS HOPKINS NOTED THE EARLY TREATMENT DEBATE IS COMPLICATED BY QUESTIONS OF COST SIDE EFFECTS AND VIRAL RESISTANCE NONE OF THE STUDIES DISPUTES THAT THE ANTIVIRAL DRUG IS USEFUL IN TREATING AIDS AND ALL THREE RECOGNIZE THAT AZT'S BENEFITS ARE LIMITED 9307290159 930729 FINANCING BUSINESS CONWEST EXPLORATION CO CONWEST EXPLORATION CO SAID IT ISSUED 33 MILLION NEW SUBORDINATE VOTING SHARES IN EXCHANGE FOR CONVERTING ITS 60 MILLION CANADIAN DOLLARS US467 MILLION OF 725 CONVERTIBLE SUBORDINATED DEBENTURES WHICH WERE DUE TO MATURE IN 2002 CONWEST AN OIL NATURAL GAS AND MINING CONCERN IN TORONTO SAID THAT AFTER THE CONVERSION IT HAS 252 MILLION SUBORDINATE VOTING SHARES OUTSTANDING KNOWN AS CLASS B SHARES WHICH CARRY ONE VOTE EACH THE COMPANY ALSO HAS 16 MILLION CLASS A SHARES WHICH CARRY 100 VOTES EACH CONWEST'S TWOTIER SHARE STRUCTURE WILL BE REPLACED BY ONE CLASS OF COMMON STOCK AS PART OF CONWEST'S PLAN TO MERGE WITH ITS CONTROLLING SHAREHOLDER FARADAY RESOURCES INC THE MERGER IS EXPECTED TO CLOSE BY SEPT 1 9307290158 930729 INTERNATIONAL EC SEEKS RULES TO PREVENT ANOTHER BCCITYPE FRAUD BRUSSELS THE EUROPEAN COMMUNITY COMMISSION PROPOSED A STRING OF BCCI FOLLOWUP MEASURES TO STIFFEN MONITORING OF BANKING ACTIVITIES AND PREVENT FINANCIAL FRAUD IN THE WAKE OF THE BCCI SCANDAL AND OTHER CASES OF WRONGDOING THE COMMISSION HAS REAPPRAISED THE SITUATION THE COMMISSION SAID REFERRING TO THE BILLIONS OF DOLLARS LOST IN THE 1991 COLLAPSE OF THE BANK OF CREDIT & COMMERCE INTERNATIONAL CONTROLLED BY BCCI HOLDINGS LUXEMBOURG SA IT SAID EC RULES FOR BANKS INSURANCE COMPANIES AND INVESTMENT FIRMS ARE MOSTLY SATISFACTORY BUT THAT THEIR SUPERVISION COULD BE REINFORCED WITH ADDITIONAL RULES ITS LATEST PROPOSALS INCLUDE REQUIRING PARENT COMPANIES TO OPEN THEIR BOOKS IN THE WAY THEIR SUBSIDIARIES ARE ALREADY REQUIRED TO SO AUDITORS MAY SEE WHAT LIES BEHIND THE SMALLER BRANCHES OBLIGING FIRMS TO REGISTER THEIR HEAD OFFICES IN THE SAME COUNTRY AS THEIR REGISTERED OFFICES TO MAKE IT EASIER FOR NATIONAL AUTHORITIES TO SUPERVISE BOTH EXPANDING THE LIST OF ORGANIZATIONS WITH WHOM AUTHORITIES CAN EXCHANGE CONFIDENTIAL INFORMATION ON COMPANY BOOKS REQUIRING AUDITORS TO REPORT ANY IRREGULAR CIRCUMSTANCES THAT MIGHT HURT A FINANCIAL INSTITUTION'S CUSTOMERS OR ITSELF THE EXECUTIVE AGENCY HAS ALREADY ASKED EC GOVERNMENTS TO INTRODUCE DEPOSITGUARANTEE SCHEMES FOR ALL BANKS CREDIT UNIONS SAVINGS AND LOANS OR OTHER SOCIETIES IT SAID IT HAS ADDED THE NEW PROPOSALS TO THE OTHER BILLS 9307290157 930729 YOUR MONEY MATTERS RIVALS GAIN GROUND ON RAYMOND JAMES IN BROKERAGE FIRMS' STOCKSELECTION RACE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL SUDDENLY IT'S A HORSE RACE AGAIN FOR THE PAST COUPLE OF YEARS THERE WAS LITTLE DOUBT WHICH OF THE MAJOR BROKERAGE HOUSES IN THE WALL STREET JOURNAL'S CONTINUING STOCKPICKING STUDY WAS DOING THE BEST JOB RAYMOND JAMES FINANCIAL INC OF ST PETERSBURG FLA SIMPLY RAN AWAY FROM THE COMPETITION BUT IN THE SECOND QUARTER RAYMOND JAMES PLACED ONLY 13TH AMONG THE 15 FIRMS IN THE JOURNAL STUDY WHICH IS DONE WITH ZACKS INVESTMENT RESEARCH INC OF CHICAGO INVESTORS WHO BOUGHT THE STOCKS ON THE FLORIDA FIRM'S RECOMMENDED LIST LOST AN ESTIMATED 177 IN THE QUARTER AS A RESULT THE 12MONTH STANDINGS ARE CLOSE FOR THE FIRST TIME IN A LONG TIME RAYMOND JAMES STILL SITS AT THE TOP ITS PICKS ROSE AN ESTIMATED 41 IN THE YEAR THROUGH JUNE BUT THREE OTHER FIRMS PAINEWEBBER INC MERRILL LYNCH & CO AND FIRST BOSTON CORP ARE BREATHING DOWN ITS NECK THE STUDY CONDUCTED QUARTERLY ESTIMATES HOW AN INVESTOR WOULD DO BY BUYING STOCKS RECOMMENDED BY EACH FIRM IT ALSO GIVES INSIGHT INTO THE TYPE OF STOCKS EACH FIRM SUGGESTS A NEW ELEMENT DEVELOPED BY RICK CHRABASZEWSKI AND LARRY CROWSON OF ZACKS IS A BATTING AVERAGE OF THE PERCENTAGE OF RECOMMENDED STOCKS THAT ROSE FOR THE 12 MONTHS THROUGH JUNE MERRILL LYNCH HAD THE HIGHEST BATTING AVERAGE 800 AS 80 OF ITS STOCKS ROSE ALL THE FIRMS BATTED ABOVE 500 EXCEPT KIDDER PEABODY & CO WHICH HIT 487 AS A SLIGHT MAJORITY OF ITS PICKS DECLINED HERE ARE THUMBNAIL SKETCHES OF HOW EACH BROKERAGE HOUSE IS PICKING STOCKS THESE DAYS WITH THE MARKET NEAR HISTORIC HIGHS THE FIRMS ARE LISTED IN ORDER OF THEIR ESTIMATED 12MONTH PERFORMANCE RAYMOND JAMES STILL HAS A HUGE LEAD IN THE FIVEYEAR STANDINGS THANKS TO FIRSTPLACE FINISHES IN SEVEN OF THE NINE QUARTERS THROUGH DECEMBER 1992 IT HAS DISPLAYED A FLAIR FOR PICKING SMALL GROWTH COMPANIES RESEARCH DIRECTOR DAVID HENWOOD SEES THE CURRENT MARKET AS TREACHEROUS IF A STOCK COMES IN A NICKEL LIGHT ON EARNINGS IT GETS DECIMATED HE SAYS THE FIRM CURRENTLY FAVORS SELECTED GAMING STOCKS PROMUS SHOWBOAT TECHNOLOGY STOCKS DANKA BUSINESS SYSTEMS TECH DATA AND BANKS AMSOUTH BB&T JP MORGAN PAINEWEBBER CUSTOMERS WHO HELD ATMEL CORP AND ALLEN GROUP MORE THAN DOUBLED THEIR MONEY DURING THE PAST YEAR OTHERS HAD NEARDOUBLES IN BAYOU STEEL AND LDDS COMMUNICATIONS THE FIRM IS CHOOSING SMALLER MORE ADVENTUROUS STOCKS IN ITS PERFORMANCE PORTFOLIO THAN IT USED TO THE MEDIAN MARKET VALUE OF ITS STOCKS 692 MILLION IS THE SMALLEST IN THE GROUP IT LIKES RESTRUCTURING CANDIDATES BANKS AND INDUSTRIAL COMPANIES WITH A EUROPEAN PRESENCE FIRST BOSTON HAD THE HIGHEST BATTING AVERAGE IN THE GROUP FOR THE LATEST QUARTER 594 THE STOCKS IT RECOMMENDS TEND TO BE VOLATILE WITH AN AVERAGE BETA OF 134 MEANING ITS PICKS MOVE UP OR DOWN ABOUT 34 MORE THAN THE MARKET CHIEF INVESTMENT STRATEGIST JEFFREY M APPLEGATE SAYS INVESTORS SHOULD TILT TOWARDS ECONOMICALLY SENSITIVE TECHNOLOGY FINANCE AND CAPITALGOODS STOCKS SOME FAVORITES MICRON TECHNOLOGY TERADYNE ADVANTA AND RAYTHEON MERRILL LYNCH LED THE PACK IN THE FIRST QUARTER BUT HAS TAILED OFF A BIT RECENTLY MERRILL HAS DONE AN OUTSTANDING JOB OF AVOIDING BIG LOSERS NO STOCK ON ITS FOCUS ONE LIST HAS FALLEN AS MUCH AS 20 DURING THE PAST YEAR UNLIKE OTHER FIRMS MERRILL DECLINED TO SELECT A LIST TO BE JUDGED ON UNTIL SEPTEMBER 1991 UNTIL THEN IT WAS JUDGED ON ALL STOCKS ITS ANALYSTS STRONGLY RECOMMENDED TODAY MERRILL SAYS ITS FIVEYEAR PERFORMANCE WOULD BE MUCH BETTER UP ABOUT 199 INSTEAD OF 1163 IF IT WERE JUDGED RETROACTIVELY ON A PAIR OF LISTS IT NOW DESIGNATES BUT THE STUDY'S RULES PROHIBIT THIS KEMPER SECURITIES IS NERVOUS ABOUT THE MARKET AND IS EMPHASIZING RISK CONTROL THE TENDENCY TO PLAY HERO IN STOCKS THAT HAVE STARTED TO MOVE AGAINST YOU HAS BEEN A POOR STRATEGY FOR THE PAST YEAR SAYS KENT LILLICK A MEMBER OF THE INVESTMENT POLICY COMMITTEE ONLY TWO OF THE FIRM'S PICKS DELUXE AND SAFECO FELL MORE THAN 10 LAST QUARTER PRUDENTIAL SECURITIES WAS ABOUT IN THE MIDDLE OF THE PACK FOR ALL TIME PERIODS STUDIED ITS SLIGHT LOSS IN THE LATEST QUARTER WASN'T DUE TO ANY BIG DISASTERS BUT TO A BUNCH OF MODERATE LOSERS INCLUDING DAYTON HUDSON INTEL LEGENT PHELPS DODGE AND PEPSICO SALOMON BROTHERS POSTED A NICE QUARTER HELPED CONSIDERABLY BY ONE STANDOUT RECOMMENDATION AMERIAN BARRICK ROSE 42 FOR THE QUARTER AND 78 FOR THE 12 MONTHS ENDED IN JUNE MORGAN STANLEY STRATEGIST BYRON WIEN SAYS INVESTORS SHOULDN'T EXPECT MUCH FROM THE MARKET BETWEEN NOW AND THE END OF THE YEAR BUT HE STILL MUSTERS ENTHUSIASM FOR BANK AND AUTO STOCKS THE FIRM'S MODEL PORTFOLIO GIVES EXTRA WEIGHT TO CERTAIN STOCKS A NUANCE THAT ISN'T REFLECTED IN THE STUDY IF IT WERE MR WIEN SAYS THE LIST WOULD HAVE BEEN UP 42 FOR THE QUARTER AG EDWARDS IS THE CHEAPSKATE OF THE CROWD ITS FOCUS LIST SPORTS THE HIGHEST DIVIDEND YIELD IN THE GROUP 32 AND THE SECONDLOWEST P/E RATIO STOCK PRICE DIVIDED BY PERSHARE EARNINGS 185 ITS STOCKS ARE ALSO THE LEAST VOLATILE IN THE GROUP WITH A BETA OF 087 MARK KELLER SENIOR INVESTMENT OFFICER SAYS THE FIRM LIKES INSURANCE STOCKS OLD REPUBLIC REINSURANCE GROUP OF AMERICA AND FALLEN GROWTH STOCKS LIKE HEINZ PET BRISTOLMYERS SQUIBB AND AMERICAN HOME PRODUCTS THE MARKET'S BEEN HANGING CREPE OVER THESE STOCKS FOR THE LAST NINE MONTHS HE SAYS KIDDER PEABODY HAD SLIGHTLY MORE LOSING STOCKS THAN GAINERS BOTH FOR THE YEAR AND THE QUARTER STILL IT MANAGED TO BEAT THE OVERALL MARKET DENNIS JARRETT CHIEF MARKET ANALYST SAYS THAT'S BECAUSE THE FIRM DELIBERATELY CUTS LOSSES FAST WHILE LETTING ITS WINNERS RIDE DEAN WITTER SHOWED THE WORST LOSS IN THE JUNE QUARTER WITH ITS AVERAGE PICK DECLINING 3 I GOT BLASTED BY MY SPECIALTY GROWTH STOCKS LAMENTS RESEARCH DIRECTOR MANNY KORMAN MERRY GO ROUND NIKE AND INSITUFORM WERE THE LARGEST LOSERS DOWN 24 TO 33 DEAN WITTER STILL HOLDS THIRD PLACE IN THE FIVEYEAR RANKINGS HOWEVER SMITH BARNEY WHICH IS BECOMING SMITH BARNEY SHEARSON WITH THE ACQUISITION OF AMERICAN EXPRESS'S SHEARSON RETAIL BROKERAGE OPERATION LED THE FIELD FOR THE SECOND QUARTER THE STOCKS ON ITS PRIORITY EQUITIES RETAIL RECOMMENDED LIST SCORED AN AVERAGE GAIN OF 43 YOU OUGHT TO BE IN SOME OF THE CYCLICALS BECAUSE THEY ARE DOING BETTER THAN CONSUMER STAPLE STOCKS SAYS JOHN B HOFFMAN DIRECTOR OF US RESEARCH GENERAL MOTORS GENERAL ELECTRIC AND ENERGY STOCKS SUCH AS EXXON ENSERCH AND DRESSER INDUSTRIES ARE AMONG HIS FAVORITES HE'S ALSO SWEET ON EMERGING GERMANY FUND WHICH HE CALLS A PLAY ON LOWER INTEREST RATES OVER THERE GOLDMAN SACHS HAS FALLEN TO THE BOTTOM OF THE RANKINGS FOR THE FIVE YEARS ENDED IN JUNE THE BIGCOMPANY GROWTH STOCKS IT TENDS TO RECOMMEND HAVE LOST LUSTER LATELY READRITE AND PHILIP MORRIS WERE THE BIGGEST LOSERS BOTH FOR THE QUARTER AND THE YEAR ENDED IN JUNE GOLDMAN AT ITS OWN ELECTION IS JUDGED ON ITS PRIORITY SELECTION LIST STEVEN EINHORN CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE SAYS THAT WERE IT JUDGED ON ITS BROADER RECOMMENDED LIST THE FIVEYEAR NUMBER WOULD BE A GAIN OF 118 INSTEAD OF 968 LEHMAN BROTHERS WHICH HAS BEEN PART OF SHEARSON LEHMAN BROTHERS ALSO LEANS TOWARD LARGECOMPANY STOCKS THE MEDIAN MARKET VALUE OF ITS PICKS IS ABOUT 5 BILLION THE HIGHEST IN THE STUDY THE FIRM'S BATTING AVERAGE IN PICKING WINNERS HAS BEEN GOOD 654 IN THE PAST YEAR BUT IT HASN'T SELECTED MANY KINGSIZED WINNERS DESPITE AN UNUSUALLY LARGE RECOMMENDED LIST THAT USUALLY HAS ABOUT 60 NAMES ON IT BEAR STEARNS ALSO HAS SELECTED MORE WINNERS THAN LOSERS BUT SOME OF ITS LOSERS NOTABLY CONTINENTAL MEDICAL SYSTEMS AND PHILIP MORRIS HAVE BEEN PAINFUL BEAR STEARNS ALSO HAS THE MOST VOLATILE STOCKS IN THE FIELD WITH AN AVERAGE BETA OF 143 OVERALL IT WAS A TOUGH QUARTER FOR THE MAJOR BROKERAGE FIRMS AS ONLY SIX OF THE 15 FIRMS TRACKED BEAT THE MARKET HOWEVER 13 BEAT THE MARKET FOR THE YEAR ENDED IN JUNE AND ALL 10 OF THE FIRMS WITH FIVEYEAR RECORDS BEAT THE MARKET FOR THE FIVEYEAR PERIOD 9307290156 930729 CANADA BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 180 BILLION CANADIAN DOLLARS US140 MILLION OF 75 BONDS DUE DEC 1 2003 PROCEEDS FROM THE AUCTION WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9307290155 930729 QUARTERLY NET DOUBLES AT SUN MICROSYSTEMS FIGURE SURPRISES ANALYSTS COMES AMID A NUMBER OF PROBLEMS AT FIRM BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC CONFOUNDING A LOUD CHORUS OF SKEPTICS SAID NET INCOME FOR ITS FISCAL FOURTH QUARTER MORE THAN DOUBLED TO 761 MILLION OR 72 CENTS A SHARE THE RESULTS COMPARED WITH YEAREARLIER NET INCOME OF 377 MILLION OR 37 CENTS A SHARE AND EASILY SURPASSED WALL STREET'S EXPECTATIONS WHICH GENERALLY RANGED FROM ABOUT 40 CENTS TO 65 CENTS A SHARE THOUGH THE RESULTS WERE RELEASED AFTER THE MARKET CLOSED SUN STOCK CLIMBED 1625 TO 2875 IN OVERTHECOUNTER TRADING YESTERDAY SUN IS THE LEADING MAKER OF WORKSTATIONS WITH ABOUT A 40 MARKET SHARE IN THAT BUSINESS LATELY IT HAS BEEN UNDER INTENSE COMPETITIVE HEAT FROM SUCH RIVALS AS HEWLETTPACKARD CO AND SILICON GRAPHICS INC MOREOVER IT HAD BEEN PLAGUED IN RECENT QUARTERS BY PRODUCT DELAYS AND OTHER SNAFUS AND HAS HAD TO CUT PRICES TO HANG ONTO BUSINESS DAMAGING PROFIT MARGINS AND PROFIT BEYOND THAT A STRATEGY OF TRYING TO BECOME A MAJOR SOFTWARE SUPPLIER BY MAKING ITS OPERATING SYSTEMS COMPATIBLE WITH MICROSOFT CORP'S WINDOWS AND WINDOWS NT SYSTEMS AND INTEL CORP'S MICROPROCESSORS HAS BEEN RUMORED IN RECENT DAYS TO BE LAGGING MANY INDUSTRY ANALYSTS AND CONSULTANTS LATELY HAVE WONDERED OPENLY WHETHER SUN COULD MAINTAIN ITS COMPETITIVE POSITION AND SUN'S STOCK HAS TUMBLED FROM 41 A SHARE IN JANUARY THE BLOCKBUSTER FOURTH QUARTER INDICATES THAT SUN IS STILL TO BE RECKONED WITH SUN WAS ABLE TO BOOST ITS GROSS PROFIT MARGINS A PIVOTAL INDICATOR OF PROFITABILITY TO NEARLY 43 IN THE PERIOD THAT COMPARES WITH MARGINS OF ABOUT 402 IN THE QUARTER ENDED MARCH 30 AND 411 IN THE QUARTER ENDED DEC 31 SOME ANALYSTS HAD SPECULATED JUST DAYS AGO THAT MARGINS FOR THE QUARTER MIGHT PLUNGE INTO THE 30S ANALYSTS SAID THE IMPROVED MARGINS INDICATE THAT SUN HAS STABILIZED ITS PRICING AS WELL AS CLAMPED DOWN ON EXPENSES REVENUE FOR THE PERIOD CLIMBED 30 TO 126 BILLION FROM 9727 MILLION MUCH OF THAT CAME FROM STRONG SALES OF ITS SOLARIS AND SOLARIS 2 OPERATING SYSTEMS INDICATING THAT THE SOFTWARE STRATEGY IS WORKING SUN SAID KEVIN C MELIA CHIEF FINANCIAL OFFICER SAID REVENUE GROWTH IN THE US AND OTHER MARKETS MORE THAN MADE UP FOR SLUGGISH EUROPEAN SALES WEAKNESS IN EUROPE HAS DAMAGED OTHER HIGHTECH CONCERNS LATELY NOTABLY NOVELL INC AND TANDEM COMPUTERS INC FOR THE FULL FISCAL YEAR SUN EARNED 1567 MILLION OR 149 A SHARE DOWN NEARLY 10 FROM YEAREARLIER NET OF 1733 MILLION OR 171 A SHARE REVENUE JUMPED 19 TO 431 BILLION FROM 359 BILLION THE STRONG QUARTERLY RESULTS HAD ANALYSTS SCRAMBLING TO REVISE THEIR PROFIT PROJECTIONS FOR THE COMING FISCAL YEAR HAMBRECHT & QUIST ANALYST ROBERT HERWICK FOR EXAMPLE HAD BEEN FORECASTING 220 A SHARE FOR SUN IN THE NEW YEAR WHILE CAUTIONING THAT HE NEEDS TO ANALYZE THE RESULTS MORE CLOSELY MR HERWICK OBSERVED THAT IF THIS LOOKS SUSTAINABLE I'D SAY ALMOST WITHOUT THINKING THAT I'LL BE BUMPING THAT BY 50 OR 60 CENTS IT'S AN IMPRESSIVE QUARTER MR MELIA SUN'S CHIEF FINACIAL OFFICER SAID ONE KEY TO BOOSTING PROFIT MARGINS WAS IMPROVEMENT IN THE POWER AND SPEED OF ITS HIGHEND SPARC WORKSTATIONS THOSE PRODUCTS HAD BEEN CRITICIZED BY SOME COMPUTER USERS BUT DESIGN IMPROVEMENTS ENABLED SUN TO BOOST THE SPEED OF ITS TOPEND SPARC SYSTEMS BY 25 ALLAYING SOME OF THOSE CONCERNS MR MELIA SAID THE ADVANCED SPARC SYSTEMS CARRY HIGH MARGINS BUT IN RECENT QUARTERS SUN HAS HAD TO OFFER FREE UPGRADES AND OTHER INDUCEMENTS TO WARD OF INCURSIONS FROM RIVAL MACHINES THAT WERE FASTER OR CHEAPER MR MELIA SAID SUN IS CONFIDENT IN GOING FORWARD WE'VE GOT A REFRESHED PRODUCT LINE AND OUR EXPENSE CONTROLS ARE STRONG HE SAID WE'VE SAID ALL ALONG THE GAME IS THERE FOR US TO WIN IF WE EXECUTE IN THIS QUARTER WE EXECUTED AND WE EXPECT TO CONTINUE TO DO SO 9307290154 930729 WHO'S NEWS NATIONAL MEDICAL SETS ADDITIONAL POSITIONS FOR BARBAKOW FOCHT SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC NAMED ITS NEW CHIEF EXECUTIVE OFFICER JEFFREY C BARBAKOW TO THE ADDITIONAL POST OF CHAIRMAN AND ITS NEW CHIEF OPERATING OFFICER MICHAEL H FOCHT SR TO THE ADDITIONAL POST OF PRESIDENT THE APPOINTMENTS FOLLOW THE RESIGNATIONS LAST WEEK OF NATIONAL MEDICAL'S COFOUNDERS AND LONGTIME TOP EXECUTIVES RICHARD K EAMER 65 YEARS OLD AND LEONARD COHEN 68 THOSE RESIGNATIONS CAME LESS THAN THREE MONTHS AFTER THE EXECUTIVES ABRUPTLY RELINQUISHED THEIR PRINCIPAL OPERATING POSTS AT THE TROUBLED HOSPITAL COMPANY TO MESSRS BARBAKOW AND FOCHT MR EAMER HAD CONTINUED IN THE INTERIM TO SERVE AS CHAIRMAN AND MR COHEN AS VICE CHAIRMAN THE MANAGEMENT SHAKEUP FOLLOWS MONTHS OF LEGAL AND BUSINESS PROBLEMS FOR NATIONAL MEDICAL MAINLY SURROUNDING ITS PSYCHIATRICCARE DIVISION WHICH HAS BEEN ACCUSED OF IMPROPER PRACTICES AND BILLING PROCEDURES THE COMPANY IS UNDER INVESTIGATION BY FEDERAL AND STATE AGENCIES AND HAS BEEN SUED BY A NUMBER OF INSURANCE COMPANIES REGARDING 1 BILLION IN ALLEGEDLY FRAUDULENT CLAIMS MR BARBAKOW 49 A NATIONAL MEDICAL DIRECTOR SINCE 1990 AND A LONGTIME FRIEND OF MR EAMER'S WAS AT ONE TIME HEAD OF THE FORMER MGM/UA COMMUNICATIONS CO AND LATER A MANAGING DIRECTOR OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP MR FOCHT 50 HAD SERVED AS SENIOR EXECUTIVE VICE PRESIDENT AND DIRECTOR OF OPERATIONS PRIOR TO THE MANAGEMENT SHAKEUP IN APRIL WHILE WE FACE MANY CHALLENGES IN THE MONTHS AHEAD NME IS FINANCIALLY SOUND AND WITH THE BENEFIT OF AN EXTREMELY VALUABLE AND TALENTED OPERATING TEAM WE WILL CONTINUE AS A VERY SIGNIFICANT PLAYER IN THE HEALTH CARE INDUSTRY MR BARBAKOW SAID THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE NATIONAL MEDICAL SHARES CLOSED AT 11625 UNCHANGED 9307290153 930729 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI PETER BRUNELLE WAS NAMED PRESIDENT OF THE COMPANY'S MARX & NEWMAN IMPORT DIVISION MR BRUNELLE 43 YEARS OLD SUCCEEDS CRAIG OPEL WHO LEFT THE APPAREL FOOTWEAR AND OPTICAL PRODUCTS COMPANY TO PURSUE OTHER BUSINESS 9307290152 930729 WHO'S NEWS FARMLAND INDUSTRIES INC FARMLAND INDUSTRIES INC KANSAS CITY MO STEPHEN P DEES WAS NAMED PRESIDENT AND GENERAL MANAGER OF THE NEW FARMLAND INDUSTRIAS UNIT IN MEXICO CITY OF THIS AGRICULTURAL COOPERATIVE EFFECTIVE SEPT 1 MR DEES 50 YEARS OLD CURRENTLY IS EXECUTIVE VICE PRESIDENT OF THE PARENT COMPANY'S ADMINISTRATIVE GROUP 9307290151 930729 HURON OHIO WANTS YOU TO COME SEE ITS OWN SEA MONSTER LOCH NESS IS COMMERCIAL IDEAL TO WHICH BOOSTERS ASPIRE TOURISTS LEERY ABOUT ERIE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL HURON OHIO MEMPHIS HAS GRACELAND SAN ANTONIO THE ALAMO HURON'S MAIN ATTRACTION IS AN UNCOOPERATIVE POPULATION OF SEA MONSTERS BASED ON A HANDFUL OF SIGHTINGS OF A SERPENTLIKE CREATURE SWIMMING IN LAKE ERIE THE TOWN'S GOVERNMENT IN 1990 PROCLAIMED HURON THE NATIONAL LIVE CAPTURE AND CONTROL CENTER FOR THE LAKE ERIE MONSTER A LOCAL ZOOLOGIST WITH A TWINKLE IN HIS EYE PRODUCED A SEVENPAGE REPORT CONCLUDING THAT THERE ARE 125 GREEN AND SCALY MONSTERS IN THE LAKE EACH 35 FEET LONG WEIGHING TWO TONS AND ABLE TO SWIM AT 220 MILES PER HOUR A HURON BUSINESSMAN PROVIDED A POND IN WHICH TO PUT A MONSTER ONCE ONE IS CAUGHT AND LINED UP PLEDGES OF MORE THAN 100000 FOR ITS CAPTURE CITIZENS HAVE CONTRIVED WAYS TO ANESTHETIZE AND NET THE BEAST OR AT LEAST NET SOME TOURIST DOLLARS MONSTERDRAWING COMPETITIONS MONSTER TSHIRTS AND MONSTER BURGERS WERE COOKED UP TO MAKE HURON A SORT OF LOCH NESS WEST THE RESULT A FEW CURIOSITY SEEKERS ACTUALLY HAVE STOPPED BY FOR LUNCH ON THEIR WAY TO NEARBY CEDAR POINT AMUSEMENT PARK IN SANDUSKY TROUBLE IS THREE YEARS INTO MONSTER MANIA HURON HAS FAILED TO CONVINCE MANY PEOPLE THAT EVEN ONE SERPENT LET ALONE 125 OF THEM ACTUALLY DWELLS IN LAKE ERIE WITH ITS MONSTER STILL AT LARGE AND LOCALS LOSING SOME OF THEIR INITIAL ENTHUSIASM HURON IS STRUGGLING TO KEEP ANY TOURISTS AT ALL IN THE MONSTER'S THRALL THE EFFORT JUST DOESN'T GET MUCH ENCOURAGEMENT OHIO WOULDN'T PLAY ALONG AND GRANT AN APPLICATION FOR A PERMIT TO HUNT THE MONSTER IN SCOTLAND THE TOWN OF INVERNESS HOME OF THE LOCH NESS MONSTER REJECTED HURON'S REQUEST TO BE A SISTER CITY INVERNESS ALREADY HAS THREE SISTER CITIES I'LL BE HONEST WITH YOU SAYS GEORGE SHEARD A RETIRED BREAD SALESMAN WHO IS HURON'S 300AYEAR MAYOR WE'RE NOT GETTING PEOPLE COMING TO THE LAKE TO SEE THE MONSTER A SAD THING TOO FOR HURON A BEDROOM COMMUNITY OF 7000 WHERE THE HURON RIVER MEETS THE LAKE 50 MILES WEST OF CLEVELAND ITS COAL AND ORE INDUSTRIES COLLAPSED MORE THAN A DECADE AGO TO JUDGE FROM THE WELCOME SIGN AT THE EDGE OF TOWN HURON'S MAJOR DISTINCTION SEEMS TO BE THAT IT IS THE HOME OF JIM SPRINGER STATE HIGH SCHOOL HIGH JUMP CHAMPION 1988 AND 1989 OR IF YOU'D PREFER THE LEADING OHIO BUILDER OF STEAMSHIPS IN THE 1830S HURON REALLY DOES HAVE A MONSTER A 35FOOT FOUR HUMPED SPIKETAILED CONSTRUCTION WITH RED FLUORESCENT EYES FLOATING ON A 300FOOT LEASH IN THE HURON RIVER IN FULL VIEW OF HIGHWAY TRAFFIC OUTRIGGERS UNDER THE WATER KEEP HIM STABLE SAYS TOM SCHOFIELD WATCHING HIS PLASTIC AND PLYWOOD CREATION FROM HIS FRONT PORCH THE THING BROKE LOOSE ONCE AND MR SCHOFIELD CAUGHT IT WEEKS LATER HEADING FOR DEEPER WATER THE LIVING BREATHING MONSTER ON THE OTHER HAND HAS BEEN SIGHTED JUST THIS MONTH SO MONSTER MANIA IS REARING IT UGLY HEAD AGAIN CHARLES DOUGLAS A RECREATIONAL BOATER FROM CLEVELAND SERIOUSLY CLAIMS TO HAVE SEEN THE CRITTER ON JULY 3 WHILE WALLEYE FISHING THERE WAS SOMETHING THERE AND IT DIDN'T WANT US TO GET CLOSE TO IT SAYS MR DOUGLAS BUT FOR THE MOST PART MONSTER OR MONSTERS HAVE BEEN MAKING THEMSELVES SCARCE WHICH IS JUST AS WELL GIVEN ALL THE JET SKIS BUZZING IN THE HURON HARBOR AND THE BOATS CROWDING THE HURON BASIN DURING THE RECENT HURON RIVER FESTIVAL CHILDREN HAD TO CONTENT THEMSELVES WITH DRAWING FANCIFUL LIKENESSES IN THE LAKE ERIE MONSTER CHALK DRAWING CONTEST AS PARENTS URGED THEM ON SAID ONE TAKE YOUR GREEN AND MAKE EYES BIG BIG EYES GIVE HIM HUMPS ON HIS BACK NOW MAKE HIM A LONG TAIL HURON'S IS A MONSTERCOMELATELY IN THE US DOZENS OF OTHER LAKES AND LAKE TOWNS HAD FIRST DIBS ON BEASTS FROM LAKE CHAMPLAIN BETWEEN VERMONT AND NEW YORK TO FLATHEAD LAKE POLSON MONT IN SCOTLAND THE DADDY OF 'EM ALL THE LOCH NESS MONSTER DRAWS 15 MILLION TOURISTS TO THE LAKE EACH YEAR BRINGING TO THE HIGHLAND REGION MORE THAN 100 MILLION THE SCOTTISH MONSTER HAD A CONSIDERABLE JUMP ON LAKE ERIE'S IT WAS FIRST SPOTTED IN THE YEAR 565 AND HAS BEEN ACTIVELY PUSHED SINCE 1930 IT HAS ONE OTHER THING GOING FOR IT THAT HURON LACKS BELIEVERS TRYING TO LAUNCH A MONSTER IS MORE DIFFICULT IN THIS DAY AND AGE SAYS ALISTAIR MACPHERSON TOURISM DIRECTOR FOR THE LOCH NESS AREA TOURIST BOARD WE LIVE IN A MORE SKEPTICAL AGE TOM SOLBERG WHO HAD BEEN LOOKING FOR A WAY TO PUBLICIZE THE HURON LAGOONS MARINA WHICH HE OWNS THOUGHT UP HURON'S MONSTER PROMOTION THREE YEARS AGO WHILE SITTING AT HIS BAR ONE SUNDAY MORNING HE PICKED UP A NEWSPAPER AND SAID HOLY MACKEREL A SEA MONSTER THE STORY OF A SIGHTING GAVE HIM COMMERCIAL IDEAS A SEA MONSTER MIGHT BE JUST THE TICKET FOR PROMOTING HIS MARINA MR SOLBERG QUICKLY OFFERED HIS CONTAINMENT POND TO HOUSE THE MONSTER GOT BUSINESSPEOPLE TO PLEDGE REWARD MONEY THEY FIGURE THEY WILL NEVER HAVE TO PART WITH AND TURNED A FISHING BOAT INTO THE LAKE ERIE MONSTER CAPTURE CRAFT THE CHAMBER OF COMMERCE INTRODUCED A NEW LINE ITEM INTO ITS BUDGET THE LAKE ERIE MONSTER FUND MR SOLBERG 52 IS A TALL ROBUST ANGLER WHO LOOKS AS IF HE COULD REEL IN THE BEAST IF ANYBODY COULD IN HIS MARINA OFFICE HE DISPLAYS A FAIR COLLECTION OF MONSTER MEMORABILIA INCLUDING A COUPLE OF OVERSIZED LURES AND A HUGE FISHHOOK HE SAYS HE PLANS TO BAIT WITH A HEAD OF CABBAGE MR SOLBERG'S ACCOMPLICE IS CHARLES HERDENDORF THE PROFESSOR EMERITUS OF ZOOLOGY AT OHIO STATE UNIVERSITY WHO DRAFTED HURON'S CAPTURE PLANS AND IN HIS FASHION DOCUMENTED THE MONSTER'S EXISTENCE TO TRAP THE BEAST WHICH HE HAS NAMED OBSCURA ERIENSIS HURONII DR HERDENDORF SUGGESTS USING A NET THE SIZE OF A FOOTBALL FIELD AND A TRANQUILIZER GUN BEING AN EMERITUS PROFESSOR I CAN DO THINGS LIKE THIS HE EXPLAINS MORE DISPASSIONATE OBSERVERS OF COURSE REJECT HURON'S MONSTER AS A FISH STORY OH SUFFERING CATS PROTESTS NICHOLAS HOTTON A SMITHSONIAN INSTITUTION PALEONTOLOGIST THE GREAT LAKES WERE FORMED 65 MILLION YEARS AFTER THE LAST MESOZOIC REPTILE WENT BELLY UP HE SAYS AND BESIDES LAKE ERIE IS TOO DAMN COLD FOR MONSTERS THOSE WHO ESPY A SEA SERPENT MOST LIKELY ARE SEEING WOOD A WAVE A SCHOOL OF CARP OR PERHAPS A NASTYLOOKING STURGEON THE SCARIEST THING IN LAKE ERIE SCIENTISTS SAY IS QUITE A BIT SMALLER THE INCHLONG ZEBRA MUSSEL WHICH CLOGS WATER INTAKES AND CLINGS TO THE HULLS OF BOATS 9307290150 930729 TECHNOLOGY DUPONT IS SET BACK BY JUDGE'S RULING IN FUNGICIDE CASE BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL IN THE LATEST BLOW TO DUPONT CO'S DEFENSE OF ITS BENLATE FUNGICIDE A FEDERAL JUDGE IN COLUMBUS GA RULED THE COMPANY CAN'T DISPUTE COURTROOM TESTIMONY THAT A DUPONT RESEARCHER FOUND BENLATE CONTAMINATED WITH A POTENT HERBICIDE THE RULING BY DISTRICT JUDGE J ROBERT ELLIOTT CAME LATE TUESDAY AS LAWYERS FOR FOUR ORNAMENTALPLANT GROWERS RESTED THEIR CASE AFTER MORE THAN TWO WEEKS OF TESTIMONY DUPONT LAWYERS WHO BEGAN THEIR DEFENSE YESTERDAY ARE EXPECTED TO TAKE ABOUT TWO WEEKS THE GEORGIA CASE IS THE FIRST TO REACH TRIAL OF MORE THAN 400 BENLATE LAWSUITS FILED AGAINST DUPONT DUPONT PAID NEARLY 500 MILLION IN DAMAGES TO GROWERS THROUGH NOVEMBER WHEN IT HALTED PAYMENTS AFTER ITS RESEARCHERS CONCLUDED THAT BENLATE DIDN'T CAUSE DAMAGE TESTIFYING FOR THE GROWERS AN EXPERT WITNESS TOLD THE GEORGIA JURY HE ANALYZED DUPONT RECORDS AND CONCLUDED THAT DUPONT RESEARCHER LAMAAT SHALABY FOUND EVIDENCE OF HIGHLY POTENT SULFONYLUREA HERBICIDES IN BENLATE SAMPLES DURING THE SPRING OF 1991 THE EXPERT TESTIMONY IS POTENTIALLY DAMAGING TO DUPONT WHICH HAS REPEATEDLY STATED THAT IT HASN'T FOUND EVIDENCE OF CONTAMINATION IN WHAT THE GROWERS' ATTORNEY C NEAL POPE DESCRIBED AS A SANCTION JUDGE ELLIOTT RULED THAT SINCE DUPONT DESTROYED SO MANY OF DR SHALABY'S RELEVANT COMPUTER TAPES DUPONT WON'T BE ALLOWED TO CLAIM THAT THE RESEARCHER DIDN'T FIND CONTAMINATION A DUPONT SPOKESMAN SAID DR SHALABY INITIALLY THOUGHT SHE FOUND EVIDENCE OF THE CROPKILLING HERBICIDE IN BENLATE BUT FURTHER TESTING SHOWED SHE WAS MISTAKEN THE SPOKESMAN SAID HE DIDN'T THINK THE JUDGE'S RULING WOULD UNDERMINE DUPONT'S ABILITY TO DEFEND ITSELF IN COURT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AFTERNOON DUPONT STOCK WAS QUOTED AT 4725 DOWN 1375 SEPARATELY DUPONT BASED IN WILMINGTON DEL REPORTED SECONDQUARTER NET INCOME OF 516 MILLION OR 76 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 277 MILLION OR 41 CENTS A SHARE THE QUARTER INCLUDED NONRECURRING CHARGES OF 21 MILLION OR THREE CENTS A SHARE THE YEAREARLIER PERIOD INCLUDED NONRECURRING CHARGES OF 207 MILLION OR 31 CENTS A SHARE RELATING TO THE BENLATE RECALL SALES WERE 955 BILLION COMPARED WITH YEAREARLIER SALES OF 975 BILLION 9307290149 930729 TIG LOSS WIDENS USF&G POSTS RISE IN QUARTERLY NET BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TIG HOLDINGS INC POSTED A BIG SECONDQUARTER LOSS BECAUSE OF RESTRUCTURING CHARGES AND USF&G CORP WHICH ALSO IS REBUILDING REPORTED A SIGNIFICANT INCREASE IN PROFIT NEW YORKBASED TIG TRANSAMERICA CORP'S FORMER PROPERTY AND CASUALTY INSURER HAD A LOSS OF 1355 MILLION OR 216 A SHARE COMPARED WITH A LOSS OF 315 MILLION OR 50 CENTS A SHARE A YEAR EARLIER THE LOSSES RELATE TO CHARGES TAKEN FOR LAYOFFS AND THE DECISION TO LEAVE UNPROFITABLE BUSINESS LINES AS WELL AS ACCOUNTING CHARGES THERE WERE ALSO CHARGES STEMMING FROM MOVING ITS OPERATING HEADQUARTERS TO THE DALLAS AREA FROM CALIFORNIA WE HAVE MADE SIGNIFICANT PROGRESS IN IMPLEMENTING OUR RESTRUCTURING PLAN SAID CHAIRMAN JON ROTENSTREICH WHO SAID MOST OF THE LOSSES WERE IN KEEPING WITH WHAT THE COMPANY PREDICTED AT THE TIME IT WENT PUBLIC THREE MONTHS AGO TIG PLANS TO REDUCE ITS BUSINESS VOLUME BY 200 MILLION A YEAR TO CONCENTRATE ON ITS MOST PROFITABLE LINES OF INSURANCE ANALYSTS WERE MILDLY DISAPPOINTED BUT SAID THE RESTRUCTURING STILL APPEARS ON TRACK THE UNDERWRITING LOSS WAS A LITTLE BIGGER THAN WHAT I WAS LOOKING FOR SAID LEHMAN BROTHERS ANALYST MICHAEL SMITH HE ADDED HOWEVER THAT SOME OF THE LOSSES WERE EXAGGERATED BECAUSE TIG TOOK THEM ALL AT ONCE RATHER THAN STRETCHING THEM OUT OVER TIME USF&G ALSO UNDERGOING A WIDELY WATCHED RESTRUCTURING REPORTED EARNINGS OF 25 MILLION AGAINST 6 MILLION A YEAR AGO ON A PERSHARE BASIS WHICH INCLUDES PAYMENTS OF PREFERRED DIVIDENDS USF&G EARNED 15 CENTS A SHARE AGAINST A YEARAGO LOSS OF SEVEN CENTS A SHARE THE BALTIMOREBASED INSURER IS FURTHER ALONG IN ITS RESTRUCTURING THAN TIG AND IS NOW FOCUSED ON THE HARDER TASK OF TRYING TO REBUILD THE COMPANY RATHER THAN SIMPLY SHEDDING BAD BUSINESSES ALTHOUGH PREMIUMS FELL 4 IN THE PERIOD PREMIUMS IN USF&G'S CORE BUSINESSES ROSE 10 TO 15 TWO AREAS USF&G IS CONCENTRATING ON INCLUDE REINSURANCE AND COMMERCIAL INSURANCE I WAS ENAMORED WITH WHAT I SAW IN THE EARNINGS SAID KIDDER PEABODY ANALYST STEVEN GAVIOS WHO HAS BEEN WALL STREET'S BIGGEST BULL ON USF&G THE UNDERLYING TRENDS ARE EVEN STRONGER THAN WHAT THE NUMBERS INDICATE HE CITED THE IMPROVEMENT IN CLAIM TRENDS AND THE GROWTH IN CORE PREMIUMS OTHER ANALYSTS HAVE BEEN FAR LESS OPTIMISTIC ABOUT THE COMPANY ON THE NEW YORK STOCK EXCHANGE YESTERDAY TIG CLOSED AT 25625 DOWN 50 CENTS WHILE USF&G WAS AT 17875 DOWN 25 CENTS 9307290148 930729 FIRST FINANCIAL PLANS ACQUISITION ATLANTA FIRST FINANCIAL MANAGEMENT CORP SAID IT HAS SIGNED AN AGREEMENT TO ACQUIRE IBT A MARKETING COMPANY THAT SELLS INSTORE BANKING PROGRAMS TO SUPERMARKETS THE INFORMATION SERVICES CONCERN SAID THE ACQUISITION WILL BE THROUGH AN EXCHANGE OF ONE MILLION UNREGISTERED SHARES OF FIRST FINANCIAL COMMON IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FIRST FINANCIAL WAS UP 50 CENTS AT 46125 IBT ALSO BASED IN ATLANTA HAD 20 MILLION IN REVENUE LAST YEAR THE TRANSACTION IS EXPECTED TO CLOSE IN 30 TO 45 DAYS 9307290147 930729 WHO'S NEWS WOODHEAD INDUSTRIES INC WOODHEAD INDUSTRIES INC BUFFALO GROVE ILL C MARK DEWINTER PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS MAKER OF SPECIALTY ELECTRICAL PRODUCTS SUCCEEDING ALAN REED WHO RESIGNED THAT POST MR REED 63 CONTINUES AS CHAIRMAN 9307290146 930729 UNITED MERIDIAN MAKES OFFERING HOUSTON UNITED MERIDIAN CORP SAID IT COMPLETED ITS INITIAL PUBLIC OFFERING OF 7900000 COMMON SHARES AT 17 EACH OF THE SHARES 44 MILLION WERE SOLD BY THE COMPANY AND 35 MILLION WERE SOLD BY CERTAIN SHAREHOLDERS UNITED MERIDIAN SAID THE OIL AND GAS CONCERN SAID THAT IN ADDITION TO CURRENT OPERATIONS IN THE US AND CANADA IT IS PURSUING OFFSHORE EXPLORATION OPPORTUNITIES IN WEST AFRICA MERRILL LYNCH & CO WAS LEAD MANAGER FOR THE OFFERING 9307290145 930729 INTEGRA APPROVES STOCK BUYBACK PITTSBURGH INTEGRA FINANCIAL CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO ONE MILLION SHARES OF THE COMPANY'S COMMON STOCK INTEGRA'S BOARD SAID IT WANTED ADDITIONAL STOCK AVAILABLE FOR EMPLOYEE BENEFITS FUTURE FINANCING ACQUISITION TRANSACTIONS AND STOCK DIVIDENDS OR DISTRIBUTIONS INTEGRA IS THE FOURTH LARGEST BANK HOLDING COMPANY IN PENNSYLVANIA WITH ASSETS OF 139 BILLION 9307290144 930729 WHO'S NEWS COMPUTER TASK GROUP INC COMPUTER TASK GROUP INC BUFFALO NY RICHARD L CRANDALL WILL JOIN THE COMPANY'S BOARD MR CRANDALL 49 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMSHARE INC AN INTERNATIONAL COMPUTER SOFTWARE CONCERN THAT MR CRANDALL FOUNDED HIS ELECTION INCREASES CTG'S BOARD TO SEVEN MEMBERS 9307290143 930729 ECONOMY GROUP OF TOP EXECUTIVES URGES CONGRESS TO PASS CLINTON'S DEFICITCUTTING PLAN BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A GROUP OF TOP CORPORATE EXECUTIVES URGED CONGRESS TO PASS PRESIDENT CLINTON'S DEFICITREDUCTION PLAN DECLARING THAT IT IS SUPERIOR TO THE ONLY APPARENT ALTERNATIVE MORE GRIDLOCK THERE ARE THINGS IN THE PRESIDENT'S PLAN THAT I DON'T LIKE AND THINGS THAT AREN'T IN THERE THAT I'D LIKE TO SEE SAID STEPHEN WOLF CHAIRMAN OF UAL CORP'S UNITED AIRLINES BUT ON BALANCE IT'S A SIGNIFICANT STEP FORWARD MR WOLF WHOSE SENTIMENTS WERE WIDELY SHARED BY HIS COLLEAGUES JOINED 68 OTHER EXECUTIVES WHO LUNCHED WITH THE PRESIDENT AND THEN ASSEMBLED IN THE EAST ROOM OF THE WHITE HOUSE IN A SHOW OF SUPPORT FOR THE CLINTON PROGRAM THE MEETING WENT FAR BEYOND MR CLINTON'S NORMAL WEEKLY GATHERING OF BUSINESS LEADERS ECONOMIC ADVISER GENE SPERLING DESCRIBED IT AS A TRUE FULLCOURT PRESS TO PASS THE DEFICITREDUCTION BILL THE FINAL VERSION OF WHICH IS NOW BEING HAMMERED OUT BY HOUSE AND SENATE NEGOTIATORS THE EXECUTIVES' BACKING HOWEVER TEPID GIVES THE ADMINISTRATION A WAY TO COUNTER BUSINESS CRITICS OF THE OVERALL PACKAGE WHILE PROVIDING THE WHITE HOUSE AND TREASURY MORE LEVERS TO WIN OVER RELUCTANT LAWMAKERS BOTH PARTIES ARE USING BUSINESS LEADERS AS PROXIES OF SORTS TO PUT PRESSURE ON SWING VOTES IN THE SENATE AND HOUSE AND THERE HAS BEEN SOMETIMES INTENSE BEHINDTHESCENES MANEUVERING TO WIN OR BLOCK ENDORSEMENTS FROM CEOS BY HAVING BETHLEHEM STEEL CORP'S CHAIRMAN HANK BARNETTE TURN UP IN THE EAST ROOM FOR EXAMPLE DEMOCRATS ARE IN A STRONGER POSITION TO WIN OVER REP PAUL MCHALE A PENNSYLVANIA FRESHMAN FROM THE STEELMAKER'S HOME TOWN WHO VOTED AGAINST THE DEFICIT PACKAGE WHEN IT FIRST PASSED THE HOUSE THE EXECUTIVES ARE HERE JUST AS I AM NOT BECAUSE ANY ONE AGREES WITH EVERY LAST LINE AND JOT AND TITTLE OF THIS ECONOMIC PROGRAM MR CLINTON ACKNOWLEDGED BUT BECAUSE IT DOES FAR MORE GOOD THAN HARM DESPITE RESISTANCE FROM SOME LAWMAKERS IN HIS OWN PARTY THE PRESIDENT PREDICTED THE BILL WOULD PASS THE ATMOSPHERE IN DISCUSSIONS HERE IS NOT AS BAD AS IF ANYTHING IT'S A LITTLE BETTER THAN IT WAS BEFORE THE INITIAL VOTES WERE TAKEN IN THE SENATE AND THE HOUSE HE SAID AT THAT TIME THE PACKAGE BARELY CLEARED BOTH CHAMBERS VICE PRESIDENT AL GORE'S VOTE WAS NEEDED TO SNAP A SENATE TIE SOME OF THE EXECUTIVES WHO ATTENDED YESTERDAY'S SESSION WEREN'T A SURPRISE TENNECO INC CHAIRMAN MICHAEL WALSH FOR INSTANCE IS A STAUNCH DEMOCRAT WHO PROVIDED AN EARLY ENDORSEMENT FOR MR CLINTON DURING THE PRESIDENTIAL CAMPAIGN XEROX CORP'S CHAIRMAN PAUL ALLAIRE WAS ONE OF THE FEW TOP CORPORATE CHIEF EXECUTIVE OFFICERS WHO CONTRIBUTED MONEY TO THE CLINTON CAMPAIGN AND OTHERS SUCH AS ATLANTIC RICHFIELD CO CHAIRMAN LODWRICK M COOK AND ZENITH ELECTRONICS CORP CHAIRMAN JERRY PEARLMAN HAVE ALSO PREVIOUSLY VOICED THEIR APPROVAL OF MR CLINTON'S ECONOMIC STRATEGY BUT SOME FACES WERE FRESH NORMAN AUGUSTINE THE CHAIRMAN OF DEFENSE CONTRACTOR MARTIN MARIETTA CORP IS A REGISTERED REPUBLICAN WHO HAS NEVER STOOD BEHIND MR CLINTON IT WAS ALSO THE FIRST FORMAL SHOW OF SUPPORT BY RAND ARASKOG THE CHAIRMAN OF ITT CORP AMONG THOSE WHO ALSO ATTENDED YESTERDAY'S GATHERING WERE DWAYNE ANDREAS CHAIRMAN OF ARCHER DANIELS MIDLAND CO RODNEY CHASE PRESIDENT OF BP AMERICA INC RONALD HALL CHIEF EXECUTIVE OF CITGO PETROLEUM CORP FELIX ROHATYN A PARTNER WITH LAZARD FRERES & CO EDGAR BRONFMAN JR PRESIDENT OF SEAGRAM CO JOHN JOHNSON CHAIRMAN OF JOHNSON PUBLISHING CO ROBERT BURT CHAIRMAN OF FMC CORP RAY IRANI CHAIRMAN OF OCCIDENTAL PETROLEUM CORP DONALD MARRON CHAIRMAN OF PAINEWEBBER GROUP INC I MACALLISTER BOOTH CHAIRMAN OF POLAROID CORP WILLIAM SMITHBURG CHAIRMAN OF QUAKER OATS CO DERYCK MAUGHAN CHAIRMAN OF SALOMON BROTHERS INC PHILIP CARROLL PRESIDENT OF SHELL OIL CO ROBERT CAMPBELL CHAIRMAN OF SUN CO SHERYL HANDLER CHIEF EXECUTIVE OF THINKING MACHINES CORP AND GERALD LEVIN CHAIRMAN OF TIME WARNER INC SOME OF THE EXECUTIVES ALSO SIGNED LETTERS ON BEHALF OF THE CLINTON PROGRAM NEARLY ALL OF THEM PRAISED THE PRESIDENT FOR HIS EFFORTS TO PARE THE DEFICIT THIS IS NOT NECESSARILY THE PACKAGE I WOULD DESIGN SAID MARTIN MARIETTA'S MR AUGUSTINE BUT WE HAVE TO ATTACK THE DEFICIT 9307290142 930729 FLIER COMPLAINTS OF ILLNESS ARE SUBJECT OF STUDIES ON PLANE CABIN AIR QUALITY BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL KIM KAMMEYER AN ALASKA AIRLINES FLIGHT ATTENDANT WORRIES ABOUT HER HEALTH EVERY TIME SHE GETS ON A PLANE FOR THE PAST FOUR YEARS SHE HAS SUFFERED FROM CHEST PAINS HEADACHES AND FATIGUE AND THE 36YEAROLD SEATTLE WOMAN ISN'T ALONE OTHER FLIGHT ATTENDANTS AND SOME PASSENGERS BLAME SIMILAR HEALTH PROBLEMS ON THE QUALITY OF AIR ON PLANES WHICH THEY CONTEND HAS WORSENED SIGNIFICANTLY SINCE A NEW GENERATION OF JETS CAME INTO USE THEIR CABINS ARE FILLED WITH HALF FRESH AIR AND HALF RECIRCULATED AIR WITH A COMPLETE EXCHANGE OF AIR EVERY SIX MINUTES OR LONGER JETS MADE BEFORE THE MID1980S CIRCULATE 100 FRESH AIR INTO THE CABIN AND REPLACE IT ABOUT EVERY THREE MINUTES AND THE FLIGHT ATTENDANTS UNION CONTENDS THAT PILOTS ON HALFFILLED FLIGHTS SOMETIMES SLOW THE FRESH AIR FLOW TO SAVE FUEL THE ASSOCIATION OF FLIGHT ATTENDANTS BLAMES THESE PRACTICES FOR THE RECENT RISE IN PASSENGER COMPLAINTS OF NAUSEA AND HEADACHES RECEIVED BY THE FEDERAL AVIATION ADMINISTRATION WHILE THE FAA CONFIRMS AN INCREASE A SPOKESMAN SAYS HE CAN'T QUANTIFY IT BUT TRANSPORTATION SECRETARY FEDERICO PENA IN JUNE ORDERED THE FAA TO CONDUCT A PRELIMINARY INQUIRY INTO THE AIR QUALITY ON PLANES AND THE CENTERS FOR DISEASE CONTROL AND PREVENTION ARE LOOKING INTO POSSIBLE TRANSMISSIONS OF TUBERCULOSIS ON AIRCRAFT TODAY A HOUSE SUBCOMMITTEE WILL HOLD A HEARING ON THE HEALTH CONCERNS WHICH WERE FIRST REPORTED BY THE NEW YORK TIMES IT MAY BE A VERY REAL PROBLEM SAYS REP TIM VALENTINE D ND WHO HEADS THE TECHNOLOGY ENVIRONMENT AND AVIATION SUBCOMMITTEE THE ATTENDANTS UNION WHOSE PRESIDENT PLANS TO TESTIFY ESTIMATES THAT 10 OF ITS 33000 MEMBERS HAVE BECOME ILL DUE TO AIR QUALITY IN THE PAST THREE YEARS IT'S AN EXTREMELY SERIOUS PROBLEM SAYS SPOKESMAN DAVID MELANCON SOME HAVE BEEN SO DISORIENTED THEY CAN'T EVEN DIAL A PHONE BUT AIRLINES AND AIRCRAFT MANUFACTURERS SAY MOST ILLNESSES ARE CAUSED BY FACTORS THAT CANNOT BE LINKED TO CABIN AIR QUALITY SUCH AS JET LAG THEY SAY THAT CABIN PRESSURIZATION IS EQUIVALENT TO THE AIR 8000 FEET ABOVE SEA LEVEL A RADICAL CHANGE FOR MOST PEOPLE PASSENGERS OFTEN BECOME DEHYDRATED BY CONSUMING ALCOHOL AND NOT DRINKING ENOUGH WATER WHILE ON BOARD WHERE THE 5 TO 10 HUMIDITY LEVEL IS LOWER THAN THE SAHARA'S ABOUT THREEFOURTHS OF THE 11000 WESTERNBUILT AIRCRAFT IN SERVICE WORLDWIDE USE RECIRCULATING AIR SYSTEMS ADOPTED BY MANUFACTURERS IN THE 1980S MANUFACTURERS AND THE FAA STAND BY THE SYSTEMS WHICH REDUCE THE INTAKE OF POLLUTION AND RETAIN CABIN HUMIDITY AND THEY SAVE NOT AN INSUBSTANTIAL AMOUNT OF FUEL AND WE WANT TO DO EVERYTHING WE CAN TO SAVE FUEL SAYS ANTHONY BRODERICK AN FAA ASSOCIATE ADMINISTRATOR FOR REGULATION AND CERTIFICATION BUT THE CENTERS FOR DISEASE CONTROL IN ATLANTA WHICH HAVE WATCHED TUBERCULOSIS CASES RISE 16 SINCE 1985 ARE LOOKING INTO FOUR CASES WHERE THE DISEASE MAY HAVE BEEN PASSED BETWEEN FLIERS IN ONE TWO FLIGHT ATTENDANTS TESTED POSITIVE FOR THE DISEASE AFTER BEING EXPOSED TO A THIRD WHO HAD DEVELOPED ACTIVE TUBERCULOSIS THE CDC ALSO ARE LOOKING AT WHETHER CONTAGIOUS PASSENGERS SPREAD THE DISEASE DURING FLIGHTS TB USUALLY REQUIRES PROLONGED EXPOSURE TO SPREAD FROM PERSON TO PERSON BUT DR EDWARD NARDELL A CONSULTANT TO THE AMERICAN LUNG ASSOCIATION SAYS TRANSMISSION CAN TAKE JUST SECONDS THERE IS NOTHING YOU CAN DO TO PREVENT IT HE SAYS BUT YOU CAN MAKE IT WORSE IF THE AIR FLOW IS POOR IT ONLY TAKES ONE PARTICLE DR WILLIAM HARK AN FAA SURGEON CALLS THE FEAR OF CATCHING TB ON AN AIRPLANE A NONISSUE BOEING SAYS MOST PLANES RECIRCULATE AIR THROUGH HIGHEFFICIENCY PARTICULATE AIR FILTERS WHICH CATCH 99 OF BACTERIA THE SIZE OF ONE MICRON AND ARE USED TO CLEAN AIR IN HOSPITAL TB WARDS THE AIR IS AS GOOD AS TECHNOLOGY CAN MAKE IT SAYS NEIL MONROE A SPOKESMAN FOR DELTA AIR LINES IT SIMPLY CAN'T BE CLEANER BUT SOME STILL PREFER FRESH AIR YOU CAN FEEL THE DIFFERENCE WHEN IT'S FRESH AIR SAYS MS KAMMEYER YOU DON'T FEEL DRAINED 9307290141 930729 WHO'S NEWS HAWTHORNE FINANCIAL CORP HAWTHORNE FINANCIAL CORP HAWTHORNE CALIF SCOTT A BRALY 39 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER AND RICHARD E GILES 65 WAS NAMED CHAIRMAN AFTER THE RETIREMENT OF VERNON D HERBST 69 MR BRALY HAS SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF THE PRINCIPAL SUBSIDIARY HAWTHORNE SAVINGS & LOAN ASSOCIATION AND MR GILES HAS SERVED AS CHAIRMAN OF THE UNIT 9307290140 930729 WHO'S NEWS FIRST FINANCIAL MANAGEMENT CORP FIRST FINANCIAL MANAGEMENT CORP ATLANTA VIRGIL R WILLIAMS 53 YEARS OLD WAS NAMED A DIRECTOR OF THIS INFORMATIONSERVICES COMPANY INCREASING THE BOARD TO NINE MEMBERS MR WILLIAMS IS THE HEAD OF WILLIAMS COMMUNICATIONS WHICH OWNS IBT A COMPANY THAT MARKETS INSTORE BANKING SERVICES TO SUPERMARKETS FIRST FINANCIAL MANAGEMENT ANNOUNCED YESTERDAY THAT IT WAS ACQUIRING IBT 9307290139 930729 CORPORATE FOCUS UNION CARBIDE CORP'S ANTICIPATED REBOUND IS STALLED SECONDQUARTER RESULTS SHOW CYCLICAL CORE BUSINESSES STILL DEPRESSED BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL UNION CARBIDE CORP WON RAVE REVIEWS ON WALL STREET OVER THE PAST 18 MONTHS FOR SLASHING COSTS AND SELLING ASSETS TO PAY DOWN MORE THAN 1 BILLION IN DEBT NOW FANS ARE WAITING FOR ACT II AN EXPECTED SURGE IN PROFIT FROM A CYCLICAL REBOUND IN CARBIDE'S PLASTICS AND INDUSTRIAL CHEMICALS BUSINESSES WHICH ACCOUNTED FOR HALF LAST YEAR'S 487 BILLION IN SALES THEY ARE IN FOR A LONG WAIT IT WILL BE AT LEAST 18 TO 24 MONTHS BEFORE CARBIDE'S HIGHLY CYCLICAL CORE BUSINESSES BOUNCE BACK ANALYSTS SAY IN RELEASING ITS SECONDQUARTER RESULTS YESTERDAY THE DANBURY CONN COMPANY CONCEDED THAT ITS POLYETHYLENE AND ETHYLENEGLYCOL BUSINESSES REMAIN IN THE DUMPS ROBERT D KENNEDY CARBIDE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MARGINS CONTINUED TIGHT IN MANY AREAS ESPECIALLY IN THE POLYETHYLENE AND ETHYLENE GLYCOL MARKETS AND VOLUME GAINS HAVE MORE THAN BEEN OFFSET BY DEPRESSED PRICES CHIEFLY DUE TO OVERCAPACITY IN KEY PRODUCT LINES HE ADDED CARBIDE REPORTED SECONDQUARTER NET INCOME OF 41 MILLION OR 24 CENTS A SHARE COMPARED WITH YEARAGO EARNINGS FROM CONTINUING OPERATIONS OF 36 MILLION OR 24 CENTS A SHARE ON FEWER SHARES OUTSTANDING IN THE YEARAGO PERIOD NET WAS 70 MILLION OR 50 CENTS A SHARE INCLUDING 34 MILLION OR 26 CENTS A SHARE FROM PRAXAIR INC A UNIT THAT MAKES INDUSTRIAL GASES CARBIDE SPUN OFF PRAXAIR TO SHAREHOLDERS IN JUNE 1992 SALES FOR THE QUARTER TOTALED 124 BILLION COMPARED WITH 126 BILLION A YEAR EARLIER CARBIDE SHARES WERE DOWN 75 CENTS AT 18625 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE A GLOBAL GLUT OF PLASTIC IS DEPRESSING PRICES ESPECIALLY FOR MOST GRADES OF POLYETHYLENE THE WORLD'S MOST WIDELY USED PLASTIC AND A BIG CARBIDE PRODUCT WORLD MARKETS ARE ALSO AWASH IN ANOTHER CARBIDE MAINSTAY ETHYLENE GLYCOL A CHEMICAL COUSIN OF POLYETHYLENE THAT'S USED MAINLY TO MAKE POLYESTER FIBERS AND ANTIFREEZE AND WITH MORE RIVALS' PLANTS MAKING PLASTICS AND PLASTICS BUILDING BLOCKS COMING ONLINE IN THE US AND EUROPE OVER THE NEXT SEVERAL MONTHS DEMAND ISN'T EXPECTED TO CATCH UP WITH SUPPLY FOR YEARS OVER THE NEXT SIX MONTHS PEOPLE ARE GOING TO WAKE UP TO THE ABSENCE OF UNDERLYING IMPROVEMENT IN CARBIDE'S BUSINESSES SAID PAUL LEMING AN ANALYST WITH KIDDER PEABODY & CO IN NEW YORK CARBIDE DECLINED TO BREAK OUT QUARTERLY SALES OR OPERATING PROFIT FOR ITS FOUR DIVISONS POLYOLEFINS INCLUDING POLYETHYLENE INDUSTRIAL CHEMICALS SOLVENTS AND COATINGS AND SPECIALTY CHEMICALS BUT SOME ANALYSTS QUESTIONED WHETHER THE POLYETHYLENE AND ETHYLENE GLYCOL LINES WERE PROFITABLE AT ALL THESE BUSINESSES ARE BLEEDING DISASTERS SAID MR LEMING MR KENNEDY ALSO SAID THAT IN THE ABSENCE OF A REBOUND IN ITS BASIC BUSINESSES CARBIDE IS LAUNCHING ANOTHER COSTCUTTING DRIVE CARBIDE HAD SAID THAT BY THE END OF 1993 IT EXPECTS COSTS WILL BE 400 MILLION LESS THAN 1990 LEVELS THE NEW REDUCTION AIMS AT PARING COSTS BY AN ADDITIONAL 175 MILLION BY THE END OF 1994 MR KENNEDY SAID STREAMLINING OF CORPORATE STAFF INFORMATION TECHNOLOGY FINANCE AND ENGINEERING ACTIVITIES WILL CONTRIBUTE THE REST OF THE SAVINGS INCREMENT MR KENNEDY SAID A CARBIDE SPOKESMAN SAID THE COMPANY COULDN'T ESTIMATE HOW MANY JOBS WILL BE ELIMINATED AS PART OF THE COSTCUTTING CARBIDE HAS 13900 EMPLOYEES GIVEN THE INTENSIFYING COMPETITION AND WIDESPREAD PRICECUTTING IN THE CHEMICAL AND PLASTICS INDUSTRY ANALYSTS EXPECT THAT LITTLE OF CARBIDE'S PROJECTED SAVINGS WILL REACH THE BOTTOM LINE PAUL RAMAN AN ANALYST WITH SG WARBURG & CO IN NEW YORK ESTIMATES THAT ONLY 25 OF THE SAVINGS WILL TRICKLE DOWN POLYETHYLENE IS CARBIDE'S LARGEST SINGLE PRODUCT THE COMPANY'S ANNUAL CAPACITY OF THREE BILLION POUNDS OF ALL GRADES OF POLYETHYLENE RANKS IT THIRD AMONG THE NATION'S PRODUCERS AFTER QUANTUM CHEMICAL CORP'S 42 BILLION POUNDS AND DOW CHEMICAL CO'S 32 BILLION POUNDS POLYETHYLENE MAKERS WENT ON A BUILDING BINGE IN THE LATE 1980S WHEN SUPPLIES WERE TIGHT MOST WORLD ECONOMIES WERE ON A TEAR AND POLYETHYLENE PROFITS WERE SHOOTING THROUGH THE ROOF BUT BY THE TIME MOST NEW PLANTS CAME ON LINE ECONOMIC GROWTH HAD COOLED AND PRODUCERS FOUND THEMSELVES UP TO THEIR EARS IN PLASTIC WITH SOME LOSING MONEY ON IT POLYETHYLENE'S BOOMANDBUST CYCLE HAS A HUGE EFFECT ON PRODUCERS' PROFITS IN GOOD TIMES IT'S A GREAT BUSINESS TO BE IN FOR INSTANCE CARBIDE'S PROFIT FROM CONTINUING OPERATIONS IN 1988 A BOOM YEAR HIT 608 MILLION BUT BY LAST YEAR PROFIT FROM CONTINUING OPERATIONS HAD CRASHED TO 119 MILLION MORE THAN 90 OF THE SWING WAS DUE TO THE COLLAPSE IN PROFITS FROM POLYETHYLENE AND ITS PLASTICS PREDECESSOR ETHYLENE ANALYSTS SAID THE SWING WAS EVEN MORE DRAMATIC AT QUANTUM WHERE 1988'S OPERATING PROFIT OF 760 MILLION WAS 12 1/2 TIMES LAST YEAR'S 61 MILLION POLYETHYLENE PRICES MAY HAVE HIT BOTTOM SOME ANALYSTS SAID BUT NO ONE IS WILLING YET TO PREDICT A REBOUND I JUST DON'T BELIEVE THE POLYETHYLENE AND ETHYLENEGLYCOL BUSINESSES HAVE TURNED THE CORNER SAID JEFFREY CIANCI AN ANALYST WITH BEAR STEARNS & CO IN NEW YORK THERE'S ANOTHER SIGN THAT RECOVERY IS NOWHERE IN SIGHT IN JUNE DEBTLADEN QUANTUM CHEMICAL AGREED TO BE ACQUIRED BY THE BRITISH CONGLOMERATE HANSON PLC ANALYSTS GREETED THE MOVE AS AN INDICATION THAT MONEYLOSING QUANTUM HAD GIVEN UP HOPE THAT IT WOULD BE BAILED OUT BY A QUICK TURN IN PLASTICS PRICES JOHN H STOOKEY QUANTUM CHAIRMAN DISPUTED THAT INTERPRETATION HE SAID THE PROPOSED SALE AT 20 A SHARE A 60 PREMIUM TO THE COMPANY'S MARKET VALUE AT THE TIME OF THE ANNOUNCEMENT GIVES OUR SHAREHOLDERS THE OPPORTUNITY TO GET IN HAND NOW A SIGNIFICANT PERCENTAGE OF WHAT THEY MIGHT HAVE HOPED TO GET OUT OF THE STOCK IN A FEW YEARS' TIME THERE ARE A STILL A FEW BULLS IN CARBIDE'S CORNER SG WARBURG'S MR RAMAN NOTED THAT MANY QUANTUM SHAREHOLDERS HAD BEEN HOPING THAT THE STOCK WOULD HIT 30 A SHARE AT THE PEAK OF THE NEXT POLYETHYLENE CYCLE AND WERE IRKED BY THE 20 SALE PRICE HIS SOLUTION FOR INVESTORS WHO BELIEVE A REBOUND IS AROUND THE CORNER BUY CARBIDE SHARES THEY ARE NEAR 20 NOW AND IF POLYETHYLENE SUPPLIES START TO TIGHTEN AND WORLD ECONOMIES PERK UP IT WILL BE A 30 STOCK BY THE END OF 1995 HE PREDICTED 9307290138 930729 INTERNATIONAL EASTERN GERMAN PRICES FLAT WIESBADEN GERMANY THE EASTERN GERMAN PRODUCER PRICE INDEX WAS FLAT IN JUNE WITH MAY AND ROSE 09 FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID 9307290137 930729 TECHNOLOGY AT&T BUYS STAKE IN ONLINE SERVICE SIERRA NETWORK BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO TOOK A SMALL BUT SIGNIFICANT STEP TOWARDS THE UNFOLDING WORLD OF MULTIMEDIA BY ACQUIRING A 20 STAKE IN AN ONLINE SERVICE THAT PROVIDES COMPUTER GAMES AND ENTERTAINMENT TO SUBSCRIBERS THIS IS CIGARETTE MONEY IN ATT'S BIG PICTURE BUT STRATEGICALLY IT'S A SMART MOVE SAID JOSH HARRIS AN ANALYST AT JUPITER COMMUNICATIONS HE SAID THE ONLINE SERVICE SIERRA NETWORK WAS ONE OF THE MOST USERFRIENDLY SERVICES AT&T SAID IT AND GENERAL ATLANTIC PARTNERS A CLOSELY HELD INVESTMENT FIRM EACH ACQUIRED A 20 STAKE IN THE UNIT OF SIERRA ONLINE INC WHICH SAID IT WILL RECEIVE A TOTAL OF 10 MILLION IN THE DEAL SIERRA NETWORK WILL BE RENAMED IMAGINATION NETWORK INC AND AT&T SAID IT WILL EVENTUALLY ASSUME CONTROLLING INTEREST AT&T ALSO WILL FUND DEVELOPMENT OF PRODUCTS AT THE NETWORK AT&T'S ACQUISITION COMES ON THE HEELS OF A MAJOR REORGANIZATION AT AT&T LAST WEEK WHICH INCLUDED THE FORMATION OF A NEW MULTIMEDIA PRODUCTS AND SERVICES GROUP HEADED BY ROBERT KAVNER OUR INVESTMENT IN SIERRA IS MODEST MR KAVNER SAID BUT WE CONSIDER THIS TO BE LEADING FOOTPRINTS TOWARD A MUCH BROADER PLUNGE INTO INTERACTIVE SERVICES CONSUMER DEMAND FOR INTERACTIVITY GOES BEYOND VIDEO GAMES AND INCLUDES ACCESS TO VIDEO AND AUDIO LIBRARIES ELECTRONIC SHOPPING NEWS SERVICES AND MAGAZINES AND VIRTUAL CLASSROOMS MR KAVNER SAID SIERRA IS AN IMPORTANT WORKBENCH FOR AT&T ABOUT 40000 SUBSCRIBERS INCLUDING TRIAL USERS SUBSCRIBE TO SIERRA'S ONLINE NETWORK AT&T ESTIMATED ABOUT 15 OF THE TIME SPENT ON ONLINE NETWORKS IN THE US IS USED BY SUBSCRIBERS TO PLAY VARIOUS SKILL FANTASY AND SHOOTEMUP GAMES MR HARRIS SAID BUT HE SAID HE THINKS AT&T'S INTEREST IN SIERRA'S ONLINE SERVICE GOES BEYOND MERE ENTERTAINMENT THE THINKING FOR AT&T IS THAT THIS WILL MIGRATE TO THE TV SET AND PREPARE AT&T FOR THE COMING WORLD OF INTERACTIVE MULTIMEDIA SERVICES SEPARATELY SIERRA ONLINE REPORTED A LOSS IN ITS FISCAL FIRST QUARTER ENDED JUNE 30 OF 36 MILLION OR 49 CENTS A SHARE COMPARED WITH A PROFIT OF 127000 OR TWO CENTS A SHARE A YEAR AGO THE COMPANY BLAMED THE LOSS PARTLY ON THE COSTS OF DEVELOPING NEW ONLINE PRODUCTS AND AN AGGRESSIVE MARKETING PROGRAM TO BOOST THE NUMBER OF SUBSCRIBERS 9307290136 930729 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH FRANCIS J HARVEY 50 YEARS OLD AND FREDERICK WELLS HILLS 43 WERE NAMED VICE PRESIDENTS MR HARVEY SUCCEEDS ITZICK BARPAAL AS LEADER OF THE WESTINGHOUSE SCIENCE & TECHNOLOGY CENTER MR BARPAAL LEFT IN JUNE FOR ALLIEDSIGNAL INC MR HILL IN A NEW POSITION WILL MANAGE WESTINGHOUSE'S COMMUNICATIONS CORPORATE ADVERTISING AND THE WESTINGHOUSE FOUNDATION 9307290135 930729 WHO'S NEWS ARBY'S INC ARBY'S INC MIAMI ROBERT E BRIGGS 46 YEARS OLD WAS NAMED TO THE NEW POSTS OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS FASTFOOD CHAIN HE ALSO WAS NAMED PRESIDENT OF ARBY'S INTERNATIONAL DIVISION MR BRIGGS COMES TO ARBY'S FROM PEPSICO INC WHERE HE WAS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF KFC/USA HE SUCCEEDS LEO JOHNSON FORMERLY SENIOR VICE PRESIDENT OF FINANCE WHO WAS NAMED A SENIOR VICE PRESIDENT OF DEVELOPMENT 9307290134 930729 OCCIDENTAL PETROLEUM SHARES LOS ANGELES OCCIDENTAL PETROLEUM CORP ANNOUNCED AN ODDLOT SALES PROGRAM ALLOWING SHAREHOLDERS WITH FEWER THAN 100 SHARES TO SELL ALL OF THEIR SHARES IN OPENMARKET TRANSACTIONS WITHOUT PAYING BROKERAGE COMMISSIONS AFFECTED STOCKHOLDERS AS OF JULY 15 WILL RECEIVE THE TERMS OF THE PROGRAM AND RELATED INFORMATION BY MAIL THE PROGRAM EXPIRES ON AUG 31 AT 5 PM EDT UNLESS EXTENDED BY OCCIDENTAL SEPARATELY OCCIDENTAL SAID ITS OCCIDENTAL GABON MEBOUN INC SUBSIDIARY ACQUIRED EXPLORATION RIGHTS TO THE 33 MILLIONACRE MEBOUN MARIN BLOCK 50 MILES OFFSHORE SOUTHWESTERN GABON FROM THE GOVERNMENT OF GABON OCCIDENTAL HAS A 100 EXPLORATION INTEREST IN THE BLOCK AND WILL BE THE OPERATOR 9307290131 930729 MEDICINE MORE FIRMS SWITCH' PRESCRIPTION DRUGS TO GIVE THEM OVERTHECOUNTER STATUS BY ELYSE TANOUYE AND THOMAS M BURTON STAFF REPORTERS OF THE WALL STREET JOURNAL RX FOR DRUGCOMPANY SUCCESS MAKE A PRESCRIPTION MEDICATION AVAILABLE OVER THE COUNTER AMONG WELLKNOWN EXAMPLES OF SUCH SWITCHES ARE AMERICAN HOME PRODUCTS CORP'S ADVIL IBUPROFEN PAIN KILLER JOHNSON & JOHNSON'S MONISTAT 7 VAGINAL YEASTINFECTION TREATMENT AND WARNERLAMBERT CO'S BENADRYL ALLERGY MEDICATION OF THE 10 TOPSELLING OVERTHECOUNTER BRANDS INTRODUCED SINCE 1975 NINE ARE SWITCHES ACCORDING TO KLINE & CO A MARKETRESEARCH CONCERN NOW COMES NEWS THAT WARNERLAMBERT HAS AGREED WITH TWO BRITISH PHARMACEUTICAL CONCERNS TO SELL OVERTHECOUNTER VERSIONS OF SOME OF THE WORLD'S BIGGESTSELLING PRESCRIPTION DRUGS WARNERLAMBERT SAID THAT GLAXO HOLDINGS PLC AND WELLCOME PLC HAVE SEPARATELY AGREED TO SELL OVERTHECOUNTER VERSIONS OF THEIR PRESCRIPTION DRUGS THROUGH A JOINT VENTURE BETWEEN WARNERLAMBERT AND WELLCOME TWO DRUGS COVERED BY THE SEPARATE AGREEMENTS GLAXO'S ANTIULCER DRUG ZANTAC AND WELLCOME'S ANTIVIRAL TREATMENT ZOVIRAX HAD COMBINED SALES LAST YEAR OF MORE THAN 4 BILLION ZANTAC THE WORLD'S LARGESTSELLING DRUG WITH PRESCRIPTION SALES OF 32 BILLION LAST YEAR WOULD BE A PARTICULARLY VALUABLE ADDITION TO WARNERLAMBERT'S PRODUCT LINE IF IT RECEIVES FOOD AND DRUG ADMINISTRATION APPROVAL FOR OVERTHECOUNTER SALES IT'S A COUP FOR WARNERLAMBERT TO GET ZANTAC SAYS ARVIND DESAI AN ANALYST AT NEW YORKBASED RESEARCH FIRM MEHTA & ISALY IF IT RECEIVES GOVERNMENT APPROVAL ZANTAC WILL FACE STIFF COMPETITION WHEN IT REACHES THE MARKET SMITHKLINE BEECHAM PLC'S APPLICATION TO SWITCH COMPETING ANTIULCER DRUG TAGAMET TO OVERTHECOUNTER STATUS IS EXPECTED TO UNDERGO FDA PANEL REVIEW EARLY THIS FALL AND THE COMPANY HAS SAID IT HOPES TO INTRODUCE THE OVERTHECOUNTER VERSION IN THE US NEXT YEAR MERCK & CO HAS ALSO FILED A SWITCH APPLICATION FOR ITS ANTIULCER DRUG PEPCID ZANTAC HOWEVER WOULDN'T REACH THE MARKET UNTIL PERHAPS EARLY 1997 SAYS MR DESAI WHO ESTIMATES THAT ZOVIRAX AND ZANTAC COULD EACH GENERATE SALES OF ABOUT 200 MILLION IN THEIR FIRST YEAR AS OVERTHECOUNTER PRODUCTS EACH OF THE TWO NEW ALLIANCES RANKS AMONG THE LARGEST SO FAR BETWEEN COMPANIES JOINING FORCES TO SWITCH PRESCRIPTION DRUGS TO THE OVERTHECOUNTER MARKET JOHNSON & JOHNSON AND MERCK FORMED A JOINT VENTURE IN 1989 TO ATTEMPT TO SELL OVERTHECOUNTER VERSIONS OF MERCK DRUGS INCLUDING PEPCID PROCTER & GAMBLE CO AND SYNTEX CORP ARE WORKING TO SWITCH SYNTEX'S PAIN RELIEVER NAPROSYN THE PRESCRIPTION DRUGS MUST RECEIVE FDA APPROVAL BEFORE THEY CAN BE SWITCHED A LONG PROCESS THAT HAS NO GUARANTEE OF A SUCCESSFUL OUTCOME LAST MONTH AN FDA PANEL RECOMMENDED AGAINST SWITCHING NAPROSYN TO OVERTHECOUNTER STATUS PHARMACEUTICAL COMPANIES VIEW OVERTHECOUNTER SWITCHES AS A SOURCE OF REVENUE GROWTH AT A TIME WHEN MAKING A PROFIT IN PRESCRIPTION DRUGS IS BECOMING MORE DIFFICULT PRICE DISCOUNTING THE RISE OF GENERIC AND BRANDNAME COMPETITION AND THE THREAT OF INCREASED GOVERNMENTAL CONTROLS UNDER HEALTHCARE REFORM HAVE SQUEEZED PROFITS IN THE PRESCRIPTIONDRUG BUSINESS AND MADE INVESTMENTS IN THE BUSINESS RISKIER OVERTHECOUNTER SWITCHES ALSO FIT A STRATEGY AT MANY COMPANIES TO BEEF UP CONSUMERPRODUCT BUSINESSES WHICH ARE SUBJECT TO LESS GOVERNMENT REGULATION THAN PRESCRIPTION DRUGS THERE ARE FUNDAMENTAL CHANGES IN THE PRESCRIPTIONDRUG MARKET SUCH AS STRONG GENERIC COMPETITION AFTER PATENTS RUN OUT SAID WARNERLAMBERT CHAIRMAN MELVIN R GOODES YESTERDAY BUT YOU CAN HAVE AN OVERTHECOUNTER BUSINESS FOR A LONG TIME HE SAID NOTING THAT LISTERINE HAS BEEN AROUND FOR OVER 100 YEARS SWITCHING DRUGS FROM PRESCRIPTION TO OVERTHECOUNTER STATUS OFTEN IS POPULAR WITH PATIENTS AND DOCTORS BUT FOR MANY CONSUMERS THERE IS A MAJOR DRAWBACK MOST INSURANCE PLANS DON'T PAY FOR OVERTHECOUNTER MEDICATIONS ONE PHYSICIAN SAYS SOME PATIENTS STILL INSIST ON PRESCRIPTION VERSIONS OF OVERTHECOUNTER MEDICINES POSSIBLY BECAUSE INSURANCE WILL PAY MOST SWITCHED DRUGS REMAIN AVAILABLE BY PRESCRIPTION ALTHOUGH THE DOSAGE IS OFTEN DIFFERENT ANOTHER POTENTIAL COST TO CONSUMERS IS THE FACT THAT UNDER THE 1984 FEDERAL HATCHWAXMAN ACT BIG BRANDNAME DRUGS GENERALLY GET THREE YEARS' EXCLUSIVITY AFTER GAINING OVERTHECOUNTER APPROVAL FROM THE FDA THUS FOR THREE YEARS NO OTHER COMPANY CAN MAKE A CHEAPER OVERTHECOUNTER COPY OF THE MEDICATION IN QUESTION EVEN THOUGH GENERICS MAY BE AVAILABLE BY PRESCRIPTION SPOKESMEN FOR THE NONPRESCRIPTION DRUG MANUFACTURERS ASSOCIATION ARGUE THAT THIS ARRANGEMENT SIMPLY GIVES COMPANIES A CHANCE TO RETRIEVE THEIR ORIGINAL INVESTMENT ON A DRUG DISCOVERY LARGELY BECAUSE OVERTHECOUNTER BRANDNAME DRUGS ARE SO PROFITABLE THERE HAS BEEN A SURGE IN APPLICATIONS FOR OVERTHECOUNTER STATUS THESE APPLICATIONS ARE INCREASING AND THIS TREND WILL LIKELY CONTINUE SAYS HEALTHINDUSTRY ANALYST HEMANT K SHAH ANALYSTS SAY MAKERS OF LOWSEDATING ANTIHISTAMINES LIKE JOHNSON & JOHNSON'S HISMANAL MARION MERRELL DOW INC'S SELDANE AND SCHERINGPLOUGH CORP'S CLARITIN HAVE APPLIED FOR OVERTHECOUNTER STATUS OR ARE PREPARING BACKGROUND DATA THERE IS NO GUARANTEE ANY OF THESE SWITCH APPLICATIONS WILL BE APPROVED HOWEVER THE FDA WOULD HAVE TO BE CONVINCED AMONG OTHER THINGS THAT DRUGS' SIDEEFFECT PROFILES ARE BENIGN AND THAT SYMPTOMS ARE EASILY RECOGNIZED AND QUICKLY ALLEVIATED THUS MANY CLASSES OF DRUGS LIKE HEART MEDICATIONS GENERALLY AREN'T CANDIDATES FOR OVERTHECOUNTER STATUS THE NONPRESCRIPTION DRUG MANUFACTURERS ASSOCIATION SAYS THE FDA CURRENTLY IS EVALUATING 25 DRUGCOMPANY APPLICATIONS FOR MEDICINES TO BE SOLD OVER THE COUNTER COMPARED WITH 51 SWITCH APPROVALS OVER THE ENTIRE PAST TWO DECADES SOME OF THIS TREND IS UNDOUBTEDLY AN ACCIDENT OF HISTORY SEVERAL BIG DRUGS' PATENTS HAPPEN TO BE EXPIRING NOW BUT SALES SUCCESSES OF MANY RECENTLY SWITCHED OVERTHECOUNTER DRUGS ARE ALSO A BIG INCENTIVE THE PRESCRIPTION ANTIFUNGAL DRUGS THAT WENT OVER THE COUNTER IN 1990 AND 1991 JOHNSON & JOHNSON'S MONISTAT SCHERINGPLOUGH'S GYNELOTRIMIN AND BAYER AG'S MYCELEX HAVE HAD GREAT SUCCESS FROM A PERCENTAGE STANDPOINT THE MOST SUCCESSFUL HAS BEEN GYNELOTRIMIN ACCORDING TO DATA COLLECTED BY TWO MONITORING COMPANIES IMS AMERICA LTD AND NIELSEN MARKETING RESEARCH IN 1990 CONSUMERS BOUGHT 649 MILLION OF THE PRESCRIPTION GYNELOTRIMIN AND A RELATED PRODUCT TOPICAL ANTIFUNGAL LOTRIMIN BY CONTRAST IN 1992 TOTAL SALES FOR THE PRODUCT TOPPED 146 MILLION OF WHICH ALL BUT 34 MILLION WERE OVER THE COUNTER ACCORDING TO IMS AND NIELSEN DATA SUPPLIED TO THE WALL STREET JOURNAL FOR THE TOPSELLING MONISTAT SALES INCREASED TO 186 MILLION FROM 167 MILLION AFTER THE SWITCH TO OVERTHECOUNTER STATUS MYCELEX SALES JUMPED TO 31 MILLION FROM 23 MILLION BETWEEN 1990 AND 1992 MYCELEX AND GYNELOTRIMIN ARE KNOWN GENERICALLY AS CLOTRIMAZOLE AND MONISTAT AS MICONAZOLE THERE AREN'T YET CHEAPER HOUSEBRAND EQUIVALENTS OF THE FIRST TWO BUT GENERIC OVERTHECOUNTER VERSIONS OF MONISTAT KNOWN AS PRIVATE LABEL OR HOUSE BRAND PRODUCTS AND SOLD UNDER DRUGSTORES' NAMES RECENTLY APPEARED ON SHELVES ANOTHER BIG SUCCESS JOHNSON & JOHNSON'S IMODIUMAD AN ANTIDIARRHEA MEDICATION KNOWN GENERICALLY AS LOPERAMIDE THAT SWITCHED TO OVERTHECOUNTER STATUS IN 1988 ACCORDING TO IMS AND NIELSEN IMODIUM SALES WERE AN ESTIMATED 315 MILLION IN 1987 BUT BY LAST YEAR SALES HAD SOARED TO 125 MILLION LOPERAMIDE TOO IS SOLD AS A CHEAPER HOUSEBRAND MEDICATION IN SOME STORES FOR INSTANCE WALGREEN DRUGSTORES' AVERAGE PRICE FOR IMODIUMAD IS 689 FOR A FOUROUNCE BOTTLE THE HOUSE BRAND KNOWN AS WALGREEN ANTIDIARRHEAL AND ALSO EMPLOYING LOPERAMIDE AS ITS ACTIVE INGREDIENT SELLS FOR 499 INDUSTRY SOURCES SAY SALES OF IBUPROFEN PRODUCTS SUCH AS AMERICAN HOME'S ADVIL UPJOHN CO'S MOTRIN IB BRISTOLMYERS SQUIBB CO'S NUPRIN AND HOUSEBRAND VERSIONS HAVE MORE THAN TRIPLED SINCE THE PAIN KILLER WAS APPROVED FOR OVERTHECOUNTER SALES NEARLY A DECADE AGO A RARE DISAPPOINTMENT SO FAR FROM A SALES STANDPOINT HAS BEEN SANDOZ PHARMACEUTICALS CORP'S TAVIST AN ANTIHISTAMINE APPROVED IN AUGUST 1992 FOR OVERTHECOUNTER SALES IMS REPORTS THAT TAVIST HAD 1728 MILLION IN PRESCRIPTION SALES IN 1991 BUT TOTAL SALES IN 1992 DROPPED TO 151 MILLION A COMBINED PRESCRIPTION AND OVERTHECOUNTER FIGURE HEALTHCARE ANALYSTS HOWEVER NOTED THAT MORE MEANINGFUL COMPARISONS FOR TAVIST WILL HAVE TO AWAIT SALES FROM THE FULL ALLERGY SEASON OF 1993 9307290130 930729 PEPPERAND SALT THAT WILL DELETE AND DESTROY AND IT REALLY WAS ONE WONDERS IF PEOPLE SHOULD BE ABLE TO VOTE WITH THEIR DRIVER REGISTRATION CONSIDERING HOW SOME DRIVE WHAT MAKES US THINK THEY CAN VOTE ANY BETTER 9307290129 930729 WHO'S NEWS ALTA ENERGY CORP ALTA ENERGY CORP MIDLAND TEXAS T SCOTT MARTIN DIRECTOR OF NEW MEXICO OPERATIONS WAS NAMED SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS OIL AND GAS CONCERN HE SUCCEEDS MITCHELL SOLICH WHO RESIGNED ALSO THE COMPANY'S VICE CHAIRMAN CHARLES W LARD ASSUMED THE ADDITIONAL ROLE OF CHIEF FINANCIAL OFFICER MR LARD 47 YEARS OLD SUCCEEDS BOBBY PAGE WHO RESIGNED 9307290128 930729 WHO'S NEWS GENERAL INSTRUMENT CORP GENERAL INSTRUMENT CORP CHICAGO THIS COMMUNICATIONS AND CABLEEQUIPMENT COMPANY ELECTED THREE NEW DIRECTORS FILLING VACANCIES ON THE BOARD THE NEW OUTSIDE DIRECTORS ARE DANIEL AKERSON PRESIDENT AND CHIEF OPERATING OFFICER OF MCI COMMUNICATIONS CORP JOHN SEELY BROWN CHIEF SCIENTIST AND CORPORATE VICE PRESIDENT OF XEROX CORP AND MORTON MEYERSON CHAIRMAN AND CHIEF EXECUTIVE OF PEROT SYSTEMS CORP 9307290127 930729 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK JOHN A DIMLING 55 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF NIELSEN MEDIA RESEARCH THE TELEVISION RATING UNIT OF THIS BUSINESS INFORMATION COMPANY MR DIMLING WHO HAD BEEN EXECUTIVE VICE PRESIDENT GROUP DIRECTOR OF MARKETING FOR NIELSEN MEDIA RESEARCH SUCCEEDS WILLIAM G JACOBI 49 WHO BECOMES SENIOR VICE PRESIDENT AT DUN & BRADSTREET 9307290126 930729 AMERICAN AIR'S CRANDALL DENIES RIVALS' CHARGES CHAIRMAN TESTIFIES CARRIER DIDN'T TRY TO GROUND NORTHWEST CONTINENTAL BY BRIDGET O'BRIAN AND JAMES S HIRSCH STAFF REPORTERS OF THE WALL STREET JOURNAL GALVESTON TEXAS AMERICAN AIRLINES CHAIRMAN ROBERT L CRANDALL TESTIFYING IN FEDERAL COURT HERE DENIED USING LAST YEAR'S FARE CUTS IN A BID TO FORCE RIVAL CARRIERS OUT OF BUSINESS IN HIS FIRST DAY ON THE WITNESS STAND MR CRANDALL ALSO ASSERTED THAT HE BELIEVED THAT THE VALUE PRICING SYSTEM AMERICAN INTRODUCED IN APRIL 1992 WOULD PROVE PROFITABLE AND HE DENIED THAT PARENT COMPANY AMR CORP STOCKPILED CASH TO WEATHER SHORTTERM LOSSES THE VALUE PLAN WAS AN EFFORT TO INCREASE OUR PROFITS INCREASE OUR REVENUES DECREASE OUR COSTS MR CRANDALL SAID WE WERE TRYING TO IMPLEMENT A SOLUTION TO A BUSINESS PROBLEM NAMELY THE COMPANY'S LOSSES PLAINTIFFS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC AND CONTINENTAL AIRLINES CONTEND THAT AMERICAN'S VALUE PRICING PLAN AND ITS SUBSEQUENT 50OFF SALE WERE ATTEMPTS BY AMERICAN TO INTENTIONALLY INCUR HUGE LOSSES WHILE DRIVING ITS RIVALS OUT OF BUSINESS A VIOLATION OF ANTITRUST LAWS KNOWN AS PREDATORY PRICING THEY ASSERT THAT AMERICAN KNEW THEY COULD ILL AFFORD THE HUGE LOSSES IT TOOK TO MATCH THE CUTS THE TWO AIRLINES SAY THEY INCURRED LOSSES OF ABOUT 1 BILLION LAST YEAR BECAUSE OF AMERICAN'S FARE INITIATIVES LAWYERS FOR CONTINENTAL AND NORTHWEST TRIED TO GET MR CRANDALL TO ACCEPT RESPONSIBILITY FOR INDUSTRYWIDE LOSSES OF HUNDREDS OF MILLIONS OF DOLLARS LAST YEAR BUT THE AMERICAN CHIEF EXECUTIVE CALMLY BATTED BACK ASSERTIONS THAT HIS ACTIONS CAUSED OTHER AIRLINES TO SUFFER I WAS OUT TO CHANGE THE WAY WE DO BUSINESS MR CRANDALL SAID I CAN'T CHANGE THE WAY THEY NORTHWEST AND CONTINENTAL DO BUSINESS ONLY THEY CAN DO THAT AMERICAN'S CHAIRMAN ALSO DISPUTED ALLEGATIONS BY NORTHWEST'S ATTORNEY THAT HE ORDERED AMERICAN PLANNING EXECUTIVES TO RIG ANALYSES ABOUT VALUE PRICING TO PROTECT THE AIRLINE FROM PREDATORY PRICING CHARGES THE NORTHWEST ATTORNEY JOSEPH D JAMAIL CITED AN INTERNAL AMERICAN DOCUMENT THAT HE SAID INSTRUCTED PLANNING OFFICIALS TO CHANGE THEIR ANALYSIS TO INDICATE VALUE PRICING WOULD BE PROFITABLE BUT MR CRANDALL SAID THE NORTHWEST LAWYER MISINTERPRETED THE MEMO SPECTATORS ANTICIPATING A SHOWDOWN BETWEEN MESSRS CRANDALL AND JAMAIL THE FLAMBOYANT TEXAS LAWYER REPRESENTING NORTHWEST WERE DISAPPOINTED THEIR SPARRING DREW FEW SPARKS AS MR JAMAIL WAS UNCHARACTERISTICALLY RESTRAINED NONETHELESS AS THE ARCHITECT OF LAST YEAR'S FARE INITIATIVE MR CRANDALL IS CLEARLY THE MOST PIVOTAL WITNESS IN THE CASE HIS MUCHANTICIPATED TESTIMONY WILL GO A LONG WAY TOWARD DETERMINING AMERICAN'S DEFENSE THAT IT WAS COMPETING FAIRLY THE LAWYERS FOR NORTHWEST AND CONTINENTAL SOUGHT TO RATTLE MR CRANDALL AND TO PAINT HIM AS AN EXECUTIVE BENT ON SUCCESS AT ANY COST THEY PRODUCED A MEMO IN WHICH MR CRANDALL HAD SCRAWLED INTO THE MARGIN CRUSH THESE GUYS A REFERENCE TO PAN AM CORP MR CRANDALL SAID HE MERELY USES VIGOROUS LANGUAGE TO MOTIVATE EMPLOYEES TO THAT END AMERICAN LAWYERS ASKED MR CRANDALL TO COMMENT ON A MEMO HE HAD WRITTEN ABOUT THE AIRLINE'S CATERER WHO HAD SERVED CHICKEN KIEV ON CERTAIN FLIGHTS INSTEAD OF CHICKEN CILANTRO KILL HIM MR CRANDALL HAD WRITTEN HE EXPLAINED THAT HE WAS SPEAKING METAPHORICALLY MR CRANDALL ALSO DISPUTED EARLIER TESTIMONY BY NORTHWEST PRESIDENT JOHN DASBURG THAT MR CRANDALL IMPROPERLY TRIED TO PRESSURE THE NORTHWEST EXECUTIVE TO RAISE TICKET PRICES MR DASBURG HAD TESTIFIED THAT MR CRANDALL WARNED HIM TO SUPERVISE PRICING WHICH HE TOOK AS AN ATTEMPT TO HAVE NORTHWEST RAISE ITS FARES MR CRANDALL TESTIFIED THAT HE HAD INDEED APPROACHED MR DASBURG IN SEPTEMBER 1991 WHEN THE TWO WERE IN WYOMING AS PART OF A GATHERING OF AIRLINE EXECUTIVES BUT HE CONTENDED IT WAS TO DISCUSS A DISPUTE BETWEEN THE TWO AIRLINES THAT HAD NOTHING TO DO WITH PRICING MR CRANDALL DIDN'T TELL THE JURY WHAT THE DISPUTE WAS ABOUT NOR DID NORTHWEST LAWYER MR JAMAIL ASK HIM AMERICAN HAS SUED NORTHWEST OVER ITS HIRING OF MORE THAN A DOZEN AMERICAN PRICING AND MARKETING EXECUTIVES THAT CASE STILL IS PENDING IN FEDERAL COURT IN MINNEAPOLIS I WASN'T TELLING HIM ANYTHING ABOUT PRICES MR CRANDALL SAID HE ALSO DENIED MR DASBURG'S CONTENTION THAT MR CRANDALL APPROACHED HIM WITH DONALD CARTY AMERICAN'S EXECUTIVE VICE PRESIDENT AND SAID THAT BECAUSE THERE WERE TWO OF THEM AND THAT MR DASBURG WAS UNACCOMPANIED THE TWO AMERICAN EXECUTIVES WOULD DENY EVER HOLDING A CONVERSATION 9307290125 930729 WHO'S NEWS INSITUFORM MIDAMERICA INC INSITUFORM MIDAMERICA INC ST LOUIS E RANDOLPH JAYNE II 48YEAROLD VICE PRESIDENT STRATEGIC PLANNING FOR MCDONNELL DOUGLAS CORP WAS NAMED PRESIDENT OF THIS REHABILITATOR OF PIPES AND SEWER SYSTEMS HE SUCCEEDS ROBERT W AFFHOLDER 57 WHO WAS NAMED TO THE NEWLY CREATED POST OF VICE CHAIRMAN 9307290124 930729 INTERNATIONAL VW CHAIRMAN SPEAKS AGAINST GM VENDETTA' PIECH REASSURES INVESTORS THAT MOVES BY LOPEZ WILL SOON YIELD PROFIT BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL WOLFSBURG GERMANY A DEFIANT VOLKSWAGEN AG CHAIRMAN FERDINAND PIECH TOOK COMMAND OF HIS COMPANY'S DAMAGECONTROL CAMPAIGN ACCUSING RIVAL GENERAL MOTORS CORP OF WAGING A VENDETTA AGAINST VW PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA AND ASSURING INVESTORS THAT PROFITS ARE JUST AROUND THE CORNER MR PIECH'S COMMENTS AT A NEWS CONFERENCE YESTERDAY WERE PEPPERED WITH SUGGESTIONS THAT FOREIGN RIVALS ARE OUT TO UNDERMINE VW HE REITERATED VW SUGGESTIONS THAT GM MIGHT HAVE PLANTED ITS TOPSECRET DOCUMENTS OR COMPUTER FILES IN VW TO FRAME THE GERMAN COMPANY AND HE ANNOUNCED THAT HE HAD ORDERED TWO VW EMPLOYEES TO COMB THE VW COMPUTER SYSTEM TO ASCERTAIN WHETHER ANY SECRET GM FILES MIGHT HAVE BEEN STEALTHILY LOADED ONTO VW COMPUTERS HIS STATEMENTS PROMPTED DECLARATIONS OF OUTRAGE FROM GM'S ADAM OPEL AG SUBSIDIARY AND GERMAN PROSECUTORS WHO ARE INVESTIGATING WHETHER MR LOPEZ AND SEVERAL ASSOCIATES STOLE GM SECRETS WHEN THEY BOLTED TO VW FROM GM LAST MARCH FROSTILY REBUFFED MR PIECH'S SUGGESTION THAT THEY ARE BEING DUPED BY FALSIFIED EVIDENCE BUT GERMAN INVESTORS CHEERED BOTH THE VW CHIEF'S DECISION TO COME OFF THE ROPES SWINGING AND HIS UPBEAT FORECASTS FOR VW'S FINANCIAL PERFORMANCE THE FRANKFURT STOCK EXCHANGE BID UP VW SHARES 1110 MARKS 643 TO 35950 MARKS REVERSING MORE THAN A WEEK OF DECLINE ON THE BASIS OF THE COSTCUTTING MEASURES THAT MR LOPEZ IS LEADING VW WILL BE IN THE BLACK BY THE THIRD QUARTER AFTER A DRASTICALLY NARROWER LOSS IN THE SECOND QUARTER MR PIECH SAID IN THE FIRST QUARTER OF 1993 VW HAD A LOSS OF 125 BILLION MARKS MR PIECH POINTED TO A TENDER SHIMMER OF RECOVERY IN THE GERMAN AUTO MARKET AND A VERY TENDER ONE IN EUROPE MR PIECH ADDED THAT VW'S MANAGEMENT AND SUPERVISORY BOARDS WILL CONTINUE TO SUPPORT MR LOPEZ UNLESS HE IS CONVICTED OF WRONGDOING IN A GERMAN COURT MR PIECH REMINDED JOURNALISTS THAT HERE ON GERMAN SOIL AT LEAST THE PRINCIPLE OF INNOCENT UNTIL PROVEN GUILTY APPLIES MR LOPEZ HASN'T BEEN CHARGED WITH ANY CRIME WHETHER MR PIECH'S VOLLEY OF DENIALS DENUNCIATIONS AND ACCUSATIONS WILL QUELL THE INDUSTRIAL ESPIONAGE CONTROVERSY SWIRLING AROUND VW AND MR LOPEZ IS FAR FROM CLEAR OPEL YESTERDAY SAID MR PIECH HAD SUNK TO AN AMAZINGLY LOW LEVEL AND SCHEDULED ITS OWN NEWS CONFERENCE FOR TODAY IN FRANKFURT TO COUNTERATTACK A SPOKESMAN FOR THE DARMSTADT PROSECUTOR'S OFFICE REJECTED MR PIECH'S ACCUSATIONS THAT OTHER HANDS MAY HAVE TAMPERED WITH FOUR BOXES OF DOCUMENTS SEIZED BY POLICE AT AN APARTMENT RENTED BY TWO OF MR LOPEZ'S ASSOCIATES THE PROSECUTOR SAID EARLIER THIS MONTH THAT THE BOXES CONTAINED SECRET GM PLANS PREPARED SPECIFICALLY FOR MR LOPEZ WE HAVE INVESTIGATED PROPERLY AND HAVE RESEARCHED ALL THINGS THOROUGHLY THE PROSECUTOR'S SPOKESMAN SAID THAT PROCESS WILL CONTINUE THE SPOKESMAN ADDED AS INVESTIGATORS INTERVIEW MORE VW EMPLOYEES AMONG THOSE CALLED HE SAID JENS NEUMANN VW MANAGING BOARD MEMBER IN CHARGE OF PERSONNEL MATTERS WHO PLAYED A KEY ROLE IN WOOING MR LOPEZ TO VW MR PIECH SAID HE WAS PLEASED TO LEARN THAT THE PUBLIC PROSECUTORS FINALLY WANT TO HEAR WITNESSES FROM THE VOLKSWAGEN CONCERN AS WELL 9307290123 930729 COUNTERPOINT THE MAN WHO'S SAVING CHINA FROM SOVIETSTYLE DISASTER BY DAVID MALPASS CHINA'S ECONOMIC PROGRAM IS IN MUCH BETTER SHAPE THAN THE JOURNAL SUGGESTS IN ITS JULY 16 EDITORIAL CHINA'S GORBACHEV FAR FROM BEARING A RESEMBLANCE TO MIKHAIL GORBACHEV'S FAILURE IN TRANSFORMING THE SOVIET UNION'S ECONOMY CHINA'S ECONOMIC LIBERALIZATION IS WORKING AND MAKES SENSE CHINA'S LATEST ECONOMIC MEASURES WILL ALLOW THE PRIVATE SECTOR TO EXPAND WHEREAS RUSSIA'S APPROACH PREVENTED IT IN SHARP CONTRAST TO RUSSIA CHINA MAY END UP WITH A STABLE CURRENCY AND LOWER INFLATION BOTH OF WHICH WOULD BE OF PARTICULAR BENEFIT TO RURAL CHINA THE JOURNAL'S ANALYSIS IS THAT CHINA IS SUFFERING THROUGH THE LAST GASPS OF COMMUNISM AS ITS ECONOMIC CZAR ZHU RONGJI TRIES TO RECENTRALIZE ECONOMIC POWER THE EDITORIAL PROPERLY CREDITS CHINA'S LEADER DENG XIAOPING WITH ADOPTING ECONOMIC DECENTRALIZATION AS CHINA'S GUIDING PRINCIPLE IN 1978 IT SUGGESTS THAT BY LETTING THE GENIE OF ECONOMIC FREEDOM OUT OF THE BOTTLE CHINA'S LEADERS HAVE LOST CONTROL ACCORDING TO THE EDITORIAL MR ZHU LIKE MR GORBACHEV FACES A COMMUNIST PARTY PLATFORM OPPOSED TO THE RULE OF LAW AND WILL BE UNABLE TO MANAGE THE ECONOMIC PROBLEMS OR RECENTRALIZE ECONOMIC POWER THIS ANALYSIS IS INCORRECT A KEY DISTINCTION NEEDS TO BE MADE ABOUT ECONOMIC DECENTRALIZATION IT IS A STERLING MANAGERIAL AND ECONOMIC PHILOSOPHY BUT SHOULD NOT BE APPLIED TO BANKS OWNED BY THE GOVERNMENT OR TO CURRENCY ISSUED BY THE GOVERNMENT MR ZHU IS NOT RECENTRALIZING CHINA'S WHOLE ECONOMY AS THE EDITORIAL IMPLIES HE IS RECENTRALIZING ONE CRITICAL ELEMENT THE CENTRAL BANK'S CONTROL OVER ITS OWN FINANCES AND CURRENCY THIS SHOULD NEVER HAVE BEEN DECENTRALIZED IT WOULD BE LIKE THE PRESIDENT OF A COMPANY IN AN EFFORT TO ENCOURAGE INDIVIDUAL INITIATIVE GIVING BLANK CHECKS TO DIVISION MANAGERS AND NOT ASKING FOR AN ACCOUNTING CHINA'S ECONOMIC EXPERIENCE BEARS PRACTICALLY NO SIMILARITY TO MR GORBACHEV'S APPROACH OR HIS RESULTS AT THE HEART OF CHINA'S ECONOMIC SUCCESS IS THE 1978 DECONTROL OF THE AGRICULTURAL SYSTEM A STEP RUSSIA IS STILL STRUGGLING TO TAKE CHINA GREW 13 IN 1992 AND 14 IN THE FIRST HALF OF 1993 CREATING JOBS AND MOVING PEOPLE OUT OF POVERTY WHILE RUSSIA SANK DEEPER MUCH OF CHINA'S CURRENT GROWTH IS COMING FROM AN EXPANDING PRIVATE SECTOR TAKING ADVANTAGE OF MR DENG'S LONGSTANDING VISION OF THE COMMUNIST PARTY MOVING AWAY FROM CENTRAL PLANNING IN CONTRAST THE RUSSIAN LEADERSHIP'S ATTACK ON THE PRIVATE SECTOR RUNS UNINTERRUPTED FROM LENIN'S HATRED OF PROFITS RIGHT UP TO THE LATEST BLUNDER LAST WEEKEND'S EFFORT TO DISOWN THE GOVERNMENT'S OWN BANK NOTES CHINA'S CURRENT ECONOMIC PROBLEMS ARE NARROWLY FOCUSED IN THE FINANCIAL SYSTEM AND ARE BEING IDENTIFIED AND ADDRESSED IN 1993 IT BECAME INCREASINGLY APPARENT THAT THE GOVERNMENT WAS LOSING SOME CONTROL OF GOVERNMENT FUNDS FOR EXAMPLE IN THE NAME OF FREE MARKETS AND PROFIT ONE LOCAL GOVERNMENT BANK IN HENGSUI ISSUED 10 BILLION IN LETTERS OF CREDIT WITH NO ASSETS TO BACK THEM UP IN THE SHEN TAIFU BOND SCANDAL A PRIVATE CHINESE BUSINESSMAN ISSUED UNREGULATED BONDS TO INVESTORS AND SQUANDERED THE PROCEEDS CAUSING 174 MILLION IN PUBLIC LOSSES ONE WAY A FEW GOVERNMENT BANKS FOUND TO EVADE CONTROL WAS TO TELL THE CENTRAL BANK THAT THEY WERE LENDING TO EACH OTHER WHEN IN REALITY THEY WERE LENDING TO FRIENDS AND RELATIVES ELSEWHERE SOME BRANCHES OF GOVERNMENT BANKS DECIDED IN A DECENTRALIZED ENTREPRENEURIAL FASHION TO FINANCE REALESTATE AND FOREIGNCURRENCY SPECULATORS RATHER THAN PAY GOVERNMENT DEBTS TO FARMERS OR BUILD INFRASTRUCTURE AS THEY WERE INTENDED TO DO AS A RESULT OF THESE ISOLATED PRACTICES CHINA'S CENTRAL BANK FOUND ITSELF PRINTING MORE CURRENCY AND MAKING MORE LOANS THAN INTENDED THE MONEY SUPPLY GREW 50 IN 1992 INFLATION ROSE TO 20 IN URBAN AREAS THE VALUE OF THE YUAN FELL FROM ITS OFFICIAL VALUE OF 57 YUAN PER DOLLAR TO A PARALLEL MARKET RATE OF 8 YUAN PER DOLLAR BY EARLY 1993 ENTER MR ZHU WHO TOOK OVER THE CENTRAL BANK AT THE BEGINNING OF JULY HIS INITIAL ACTIONS WERE THOSE OF A COMPETENT FINANCIAL MANAGER HE CALLED IN THE GOVERNMENT BANKERS AND INSTRUCTED THEM TO FOLLOW THE GOVERNMENT'S RULES LEND LESS PAY GOVERNMENT DEBTS TO FARMERS WITH CASH RATHER THAN IOUS STOP SPECULATING IN REAL ESTATE AND GIVE ACCURATE REPORTS TO THE CENTRAL BANK HE PROHIBITED THE ISSUANCE OF UNREGULATED SECURITIES A PRAGMATIC STEP THAT THE JOURNAL'S EDITORIAL MAKES OUT TO BE A DARK POWERGRAB TO FORBID LOCAL ENTERPRISES TO BORROW FUNDS OUTSIDE THE STATE BANKING SYSTEM IN HIS MOST IMPORTANT ACTION MR ZHU MOVED WITHIN WEEKS OF HIS APPOINTMENT TO STABILIZE THE VALUE OF THE YUAN AND REMOVE SOME OF THE PRICE CONTROLS FROM CHINA'S FOREIGNEXCHANGE MARKETS BY HONORING CHINA'S CURRENCY AT 85 YUAN PER DOLLAR RATHER THAN THE 11 YUAN PER DOLLAR TO WHICH IT HAD FALLEN IN JUNE MR ZHU MADE GOOD ON A GOVERNMENT'S PRINCIPAL FINANCIAL COMMITMENT TO ITS PEOPLE THIS IS JUST THE TYPE OF CONSTRUCTIVE DECENTRALIZATION CHINA PARTICULARLY RURAL CHINA NEEDS TO GROW AND CREATE INVESTMENT FOR CONTRAST LOOK AT THE RUSSIAN APPROACH THE RUSSIAN DEVALUATION OF 199193 WILL TURN OUT TO BE ONE OF THE MOST DAMAGING COMMUNIST POWERGRABS SINCE THE RISE OF THE BERLIN WALL WHEREAS THE COMMUNIST PARTY UNDER MR GORBACHEV OWNED MOST OF THE NATION'S ASSETS BEFORE THE DEVALUATION ITS OWNERSHIP HAS INCREASED TO NEARLY 100 AS THE DEVALUATION RUNS ITS COURSE AND RENDERS WORTHLESS ALL PRIVATE RUBLE SAVINGS DECONTROL OF RUSSIA'S GOVERNMENT BANKS AND OF THE VALUE OF THE RUBLE WAS AT THE CORE OF RUSSIA'S ECONOMIC DECENTRALIZATION PROGRAM AND IS NOW THE SOURCE OF MASSIVE INSTABILITY IN THE FORMER SOVIET REPUBLICS IT IS PRECISELY THIS DECENTRALIZATION OF THE VALUE OF PEOPLE'S MONEY WHICH CONCENTRATED ALL ECONOMIC POWER IN MOSCOW BY DESTROYING THE VALUE OF NONPARTY RUBLE ASSETS THAT MR ZHU HAS MOVED TO HALT IN CHINA RUSSIA NEVER REALLY TRIED TO GET CONTROL OF ITS GOVERNMENT'S FINANCES AND THE ECONOMIC DAMAGE HAS BEEN DONE IF MR GORBACHEV LIKE MR ZHU HAD TAKEN A DESK IN HIS OWN CENTRAL BANK AND DECLARED HIS COMMITMENT TO THE RUBLE AND TO THE INTEGRITY OF THE RUSSIAN FINANCIAL SYSTEM RUSSIA WOULD HAVE AVOIDED MUCH OF ITS CONTINUING ECONOMIC DEBACLE CHINA'S GOVERNMENT FINANCE SYSTEM HAS SERIOUS PROBLEMS MR ZHU HAS IDENTIFIED SOME OF THEM AND MOVED RAPIDLY TO MAKE REPAIRS USING HIS PERSONAL AUTHORITY AND THE AUTHORITY OF THE CHINESE GOVERNMENT AS A RESULT THERE IS A GOOD CHANCE CHINA WILL MOVE FORWARD WITH A STABLE CURRENCY LOWER INFLATION AND CONTINUED RAPID GROWTH IF SO THIS APPROACH WILL HAVE BROUGHT INCREASED ECONOMIC LIBERTY AND INDIVIDUAL OPPORTUNITY TO CHINA MR ZHU'S ROLE THUS FAR SHOULD BE COMMENDED MR MALPASS IS DIRECTOR FOR INTERNATIONAL ECONOMICS AT BEAR STEARNS 9307290122 930729 OTC FOCUS TECHNOLOGY STOCKS SPARK A RALLY LED BY MICROSOFT INDEX JUMPS 459 POINTS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK HOT TECHNOLOGY STOCKS IGNITED NASDAQ PRICES SPARKING A RALLY IN THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX JUMPED 459 POINTS OR 065 TO FINISH AT 70559 ADVANCING ISSUES SAILED PAST DECLINERS 1462 ISSUES TO 1263 MEANWHILE BLUE CHIP STOCKS FORCED NEW YORK STOCK EXCHANGE PRICES LOWER THE DOW JONES INDUSTRIAL AVERAGE FELL 1201 POINTS OR 034 TO 355345 AND THE EXCHANGE'S COMPOSITE INDEX GAVE UP 048 POINT OR 019 TO END AT 24786 NASDAQ ISSUES HAVE FOLLOWED THE EBBS AND FLOWS OF THE TECHNOLOGY SECTOR FOR THE PAST TWO WEEKS BOUNCING UP AND DOWN AS TECH STOCKS JUMPED AROUND MOSTLY ON THE HEELS OF CORPORATE EARNINGS REPORTS MARKET WATCHERS SAID MICROSOFT LED THE MARKET HIGHER AS IT RALLIED AHEAD OF ITS FISCAL FOURTHQUARTER RESULTS THE REDMOND WASH COMPUTER SOFTWARE GIANT'S SHARES GAINED 2 3/4 TO 78 1/4 ARNIE OWEN HEAD OF OTC TRADING AT SOUNDVIEW FINANCIAL GROUP SAID THE MOST IMPORTANT THING IS THAT MICROSOFT HELD THE 75 LEVEL THE STOCK HAD BEEN OVERDONE AND IT BOUNCED BACK ON SOME PRETTY GOOD TECHNICAL INTEREST TRADERS ALSO CITED THE POSSIBILITY THAT SHORTCOVERING WAS PLAYING A ROLE IN MICROSOFT'S STOCK ACTIVITY SHORTCOVERING OCCURS WHEN TRADERS WHO HAD BET ON DECLINING STOCK PRICES ARE FORCED TO PURCHASE SHARES TO COVER THEIR BETS STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN & CO SAID THE OTC MARKET'S PERFORMANCE TODAY DEPENDS LARGELY ON HOW MICROSOFT'S STOCK RESPONDS TO ITS EARNINGS THE COMPANY REPORTED THAT IT EARNED 87 CENTS A SHARE DURING THE FOURTH QUARTER IN LINE WITH EXPECTATIONS MICROSOFT'S EARNINGS ARE A BIG BELLWETHER FOR THE WHOLE INDUSTRY MR GOLDMAN SAID THE STOCK COULD DO WELL BECAUSE IT'S BEEN GETTING BEATEN UP LATELY THERE'S SOME BOTTOMFISHING GOING ON HE ALSO SAID THE STOCK HAS HAD UPSIDE EARNINGS SURPRISES IN THE PAST THE STRATEGIST ADDED THAT THE NASDAQ MARKET TYPICALLY RESPONDS TO TECHNOLOGY STOCKS THE SECTOR HAS FARED BADLY IN RECENT SESSIONS DUE TO DISAPPOINTING EARNINGSRELATED NEWS AND THE HISTORICALLY BEARISH SUMMER SEASON FOR TECH ISSUES HE SAID BONDS ALSO BUOYED EQUITY PRICES WITH THE LONG BOND GAINING NEARLY 1/2 A POINT DEPRESSING ITS YIELD TO ABOUT 67 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME EASED SLIGHTLY TO 224474000 SHARES COMPARED WITH 232260600 TUESDAY OTHER TECH STOCKS ALSO SOARED APPLIED MATERIALS EDGED UP 1 7/8 TO 61 3/4 SEAGATE ROSE 1 1/8 TO 19 7/8 NOVELL SHOT 1 1/8 HIGHER TO 19 1/2 KOMAG IMPROVED 1 1/4 TO 20 1/4 AND LOTUS DEVELOPMENT INCREASED 1 1/8 TO 38 7/8 GOOD EARNINGS PUSHED KULICKE & SOFFA STOCK UP 2 1/8 TO 23 3/8 THE WILLOW GROVE PA DESIGNER OF SEMICONDUCTOR DEVICES EARNED 47 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER COMPARED WITH A LOSS OF 10 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED THE COMPANY TO EARN 33 CENTS A SHARE FOR THE QUARTER AUTODESK OF SAUSALITO CALIF SLIPPED 1 3/4 TO 41 3/4 THE SOFTWARE FIRM'S VICE PRESIDENT LEN RAND RESIGNED LAST THURSDAY FIVE MONTHS AFTER A CORPORATE REORGANIZATION REDUCED HIS AREA OF RESPONSIBILITY A COMPANY SPOKESWOMAN SAID ALSO SALOMON BROTHERS ANALYST JEFF CANIN SAID HE TOLD THE BROKERAGE FIRM'S SALES FORCE THAT AUTODESK'S FISCAL SECOND QUARTER WHICH ENDS THIS WEEK IS A CLIFFHANGER SIERRA ONLINE DROPPED 1 1/4 TO 12 1/2 AFTER IT REPORTED A FIRSTQUARTER LOSS OF 49 CENTS A SHARE COMPARED WITH NET INCOME OF 2 CENTS A SHARE IN THE YEAREARLIER PERIOD ANALYSTS HAD EXPECTED THE OAKHURST CALIF SOFTWARE CONCERN TO POST A 17CENTASHARE LOSS NEWS OF ITS MERGER WITH BIG BOARDTRADED MERCK SENT MEDCO CONTAINMENT SERVICES IN MONTVALE NJ SOARING 4 3/8 TO 34 1/8 THE TWO COMPANIES SIGNED A DEFINITIVE MERGER AGREEMENT THAT CALLS FOR MERCK TO PAY ABOUT 6 BILLION IN STOCK AND CASH FOR CURRENTLY OUTSTANDING MEDCO SHARES MEDCO TOPPED THE MOSTACTIVES LIST WITH VOLUME OF 219 MILLION SHARES MORE THAN 10 TIMES THE AVERAGE DAILY VOLUME MERCK SLUMPED 1 3/8 TO 30 3/4 9307290121 930729 HOUSE REPORT SAYS BILLIONS IN DIVIDENDS FAIL TO REACH OWNERS WASHINGTON BILLIONS OF DOLLARS OF DIVIDENDS FAIL TO REACH THEIR RIGHTFUL OWNERS EACH YEAR ACCORDING TO A HOUSE STAFF REPORT THE REPORT PREPARED BY THE STAFF OF THE REGULATION SUBCOMMITTEE OF THE HOUSE SMALL BUSINESS COMMITTEE WARNED THAT THE PROBLEM COULD BE EVEN LARGER WITH BILLIONS OF DOLLARS MORE IN UNCLAIMED STOCKS BONDS AND OTHER FINANCIAL INSTRUMENTS WHOSE REGISTRATION SALE AND EXCHANGE ARE REGULATED BY FEDERAL AGENCIES THE LOST SHAREHOLDER PROBLEM REFLECTS A SIGNIFICANT GAP IN STATE AND FEDERAL SECURITIES LAW AND A GENUINE RISK FOR SMALL INVESTORS THE REPORT SAID INDIVIDUAL SHAREHOLDERS AS A CLASS ARE THE MAJOR LOSERS MAJOR WINNERS MAY BE CORPORATIONS AND THEIR TRANSFER AGENTS ACCORDING TO THE REPORT EVEN THOUGH THEY RARELY HOLD ONTO THE DIVIDENDS STOCKS AND BONDS FOREVER THE REPORT SAID PUBLIC COMPANIES AND THEIR TRANSFER AGENTS QUITE OFTEN MAJOR BANK HOLDING COMPANIES MAY REALIZE MILLIONS OF DOLLARS OF INTEREST EARNINGS MANY OF THE TRANSFER PROBLEMS ARISE WHEN SHAREHOLDERS OR THEIR HEIRS OR BROKERS FAIL TO NOTIFY CORPORATIONS OF CHANGES IN OWNERSHIP OR ADDRESS ACCORDING TO THE REPORT BUT IT ALSO CITED ANECDOTAL EVIDENCE THAT TRANSFER AGENTS HAVE BEEN LESS DILIGENT IN PURGING OBVIOUS MISTAKES IN ADDRESSES OR NAMES FROM THEIR RECORDS CHEMICAL BANK OF NEW YORK A MAJOR TRANSFER AGENT TOLD THE HOUSE SUBCOMMITTEE STAFF THAT AT ANY GIVEN TIME IT HAD UNDELIVERABLE ACCOUNTS EXCEEDING 20000 NAMES IN THE REPORT THE BANK ALSO SAID TWO EMPLOYEES ARE ASSIGNED TO TRACK DOWN THOSE ACCOUNTS WILLIAM HEYMAN FORMER SECURITIES AND EXCHANGE COMMISSION MARKET REGULATION DIRECTOR TOLD THE STAFF THAT THE TRANSFER AGENTS WE CONTACTED REPORTED THOUSANDS OF UNDELIVERABLE ACCOUNTS THE REPORT SAID THE STAFF CONTACTED ABOUT A DOZEN TRANSFER AGENTS AND A NUMBER OF COMPANIES WHO SPECIALIZE IN TRACING DEBTORS AND FOUND THAT PUBLIC COMPANIES APPEAR TO TRACK DEBTORS MORE ZEALOUSLY THAN THEY DO THOSE WHO ARE OWED DIVIDENDS OR OTHER PAYMENTS 9307290120 930729 MARKETING & MEDIA TIME WARNER'S HBO BUYS 10 STAKE IN ZELNICK'S NEW VIDEO GAME COMPANY BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL HOME BOX OFFICE HAS JOINED THE GROWING LIST OF ENTERTAINMENT COMPANIES BETTING ON THE FUZZY FUTURE OF INTERACTIVE MULTIMEDIA BUYING A 10 STAKE IN CRYSTAL DYNAMICS INC A VIDEO GAME STARTUP COMPANY HEADED BY FORMER TWENTIETH CENTURY FOX PRESIDENT STRAUSS ZELNICK TERMS WEREN'T DISCLOSED BUT FOR A RELATIVELY SMALL SUM ESTIMATED AT A FEW MILLION DOLLARS THE PAYTELEVISION CHANNEL NOW HAS A TOEHOLD IN THE EMERGING FIELD OF INTERACTIVE ENTERTAINMENT EVERYONE WANTS TO CROSS OVER INTO THE NEW FRONTIER SAID MICHAEL FUCHS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HBO A UNIT OF TIME WARNER INC AND IT'S HARD TO PREDICT IN WHAT DIRECTION THIS BUSINESS WILL GO THE SMARTEST MOST SHREWD PLAYERS ARE HEDGING THEIR BETS IN INTERACTIVE FUNDING THE 10 OR 15 STARTUPS WITH THE MOST POTENTIAL AND TAKING A MINORITY STAKE FOR LITTLE MONEY SO THAT IF ANY ONE IS SUCCESSFUL THEY'LL HAVE BEEN IN ON THE GROUND FLOOR SAID LISBETH BARRON AN ANALYST WITH SG WARBURG IN NEW YORK SHE NOTED THAT HBO HAS BRANCHED OUT BEYOND PAY TELEVISION INTO VIDEO PRODUCTION AND NETWORK TELEVISION PRODUCTION AND THAT INTERACTIVE IS THE NEXT STEP IN DIVERSIFYING AWAY FROM A CORE BUSINESS THAT CLEARLY ISN'T GOING TO BE GROWING ALONG WITH THE INVESTMENT HBO'S PRESIDENT AND CHIEF OPERATING OFFICER JEFF BEWKES WILL JOIN CRYSTAL DYNAMICS' BOARD OVER THE SHORTTERM HBO PLANS TO HELP CRYSTAL DYNAMICS DEVELOP INTERACTIVE VIDEO GAMES THE COMPANY'S FIRST TWO PRODUCTS CRASH N BURN A RACECAR GAME AND TOTAL ECLIPSE A SPACE COMBAT SIMULATOR WILL BE RELEASED THIS FALL AS TWO OF THE FIRST TITLES TO BE USED IN AN INTERACTIVE SYSTEM DEVELOPED BY 3DO CO THE COMPANY WILL BE SUCCESSFUL AS ITS GAMES ARE SUCCESSFUL MR FUCHS SAID LONGTERM MR FUCHS SEES THE POSSIBILITY OF A CABLE CHANNEL THAT WOULD BROADCAST THE INTERACTIVE GAMES I DON'T THINK THERE'S ANY REASON THESE GAMES CAN'T MOVE OVER INTO AN INTERACTIVE CHANNEL SAID MR FUCHS TIME WARNER ALREADY HAS TEAMED WITH GAME MAKER SEGA ENTERPRISES LTD OF JAPAN AND CABLE OPERATOR TELECOMMUNICATIONS INC TO OFFER GAMES THROUGH CABLE SYSTEMS TIME WARNER IS ALSO AN INVESTOR IN 3DO WHOSE 700 MACHINE MADE BY MATSUSHITA ELECTRIC INDUSTRIAL CO'S PANASONIC UNIT WILL BE THE FIRST 32BIT GAME SYSTEM TO HIT THE MARKET A BIT IS A UNIT OF DIGITAL INFORMATION CURRENT GAME SYSTEMS FROM SEGA AND NINTENDO CO HAVE 16 BITS OVER TIME IT'S A LEGITIMATE EXPECTATION THAT INTERACTIVE WILL BE AVAILABLE OVER SATELLITE AND CABLE SAID MR ZELNICK THE 35YEAROLD MOVIE EXECUTIVE WHO JOINED CRYSTAL DYNAMICS LAST MONTH LEAVING HIS JOB AS PRESIDENT AND CHIEF OPERATING OFFICER OF NEWS CORP'S TWENTIETH CENTURY FOX FILM UNIT CRYSTAL DYNAMICS PALO ALTO CALIF WAS FORMED LAST YEAR BY FORMER EXECUTIVES OF SEGA AND AMIGA COMPUTER CO WITH FUNDING FROM TECHNOLOGY PARTNERS AND KLEINER PERKINS CAULFIELD & BYERS THE REASON WE CHOSE HBO AS OUR FIRST STRATEGIC PARTNER FROM AMONG THE MANY COMPANIES WHO HAVE SHOWN A GREAT DEAL OF INTEREST WAS RELATED TO THEIR CREATIVE TRACK RECORD IN MANY AREAS MR ZELNICK SAID THEY ARE ALSO A UNIT OF TIME WARNER WHICH CARRIES WITH IT MANY OTHER POTENTIAL CREATIVE OPPORTUNITIES 9307290119 930729 LAW LEGAL BEAT JUDGE TELLS PROSECUTORS TO HONOR PLEA ACCORD OF EXSALOMON TRADER BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE ORDERED PROSECUTORS TO HONOR THEIR DISPUTED PLEA AGREEMENT WITH EXSALOMON BROTHERS INC TRADER PAUL W MOZER WHO ALLEGEDLY WAS AT THE CENTER OF THE SALOMON TREASURYAUCTION BIDDING SCANDAL THE RULING WHICH EXCORIATES PROSECUTORS FOR TRYING TO REPLACE THE PLEA AGREEMENT WITH A HARSHER INDICTMENT WAS SEEN AS A VICTORY FOR THE CRIMINAL DEFENSE BAR I THINK WHAT IT MEANS IS THAT WHEN THE GOVERNMENT MAKES AN ARRANGEMENT WITH A DEFENDANT THAT THEY HAVE A VERY VERY HIGH DEGREE OF OBLIGATION TO FULFILL THEIR PROMISES SAID MR MOZER'S ATTORNEY STANLEY S ARKIN AND IT ALSO MEANS THAT DEFENSE LAWYERS DON'T HAVE TO BE SUBMISSIVE AND NOT INDEPENDENT WHEN MAKING A PLEA AGREEMENT AS PART OF THE AGREEMENT MR MOZER WILL ADMIT TO TWO FELONY COUNTS OF MAKING FALSE STATEMENTS TO US OFFICIALS IN A FEBRUARY 1989 TREASURYNOTE AUCTION PROSECUTORS HAD HOPED TO PROCEED WITH A BROADER FOURCOUNT INDICTMENT THAT INCLUDED A FRAUD CHARGE UNDER THE ORIGINAL DEAL MR MOZER COULD AVOID ANY PRISON TIME AN OUTCOME THAT WOULD HAVE BEEN MUCH LESS LIKELY UNDER THE BROADER INDICTMENT SALOMON BROTHERS A UNIT OF SALOMON INC NEW YORK LAST YEAR ADMITTED TO VIOLATING GOVERNMENT RULES IN NINE TREASURY AUCTIONS AND PAID 290 MILLION TO SETTLE CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION NINETYEIGHT OTHER BANKS INVESTMENT AND COMMERCIAL SETTLED RELATED CIVIL CHARGES AND PAID 5 MILLION MR MOZER FORMER HEAD OF SALOMON BROTHERS' GOVERNMENT SECURITIES TRADING DESK HAS DENIED ANY WRONGDOING HE ALSO IS ACCUSED IN A SECURITIES AND EXCHANGE COMMISSION CIVIL LAWSUIT OF FALSIFYING RECORDS IN EIGHT TREASURY AUCTIONS FROM 1989 THROUGH 1991 PROSECUTORS HAD SOUGHT TO BACK OUT OF THE PLEA AGREEMENT REACHED IN JANUARY AFTER MR ARKIN OF NEW YORK LAW FIRM CHADBOURNE & PARKE ARGUED THAT IT BARRED POSSIBLE ANTITRUST CHARGES CLAIMING THE DEAL PROVIDED NO SUCH PROTECTION THE US ATTORNEY'S OFFICE RESPONDED BY FILING A BROADER FOURCOUNT INDICTMENT AGAINST MR MOZER THE GOVERNMENT'S ANTITRUST CASE IN THE TREASURYAUCTION SCANDAL HAS BEEN BEFORE A GRAND JURY IN NEW YORK PROSECUTORS ARGUED THAT MR ARKIN'S EFFORTS TO APPLY IT TO POTENTIAL ANTITRUST ALLEGATIONS AMOUNTED TO A BREACH OF THE PLEA AGREEMENT BY MR MOZER BUT US DISTRICT JUDGE PIERRE N LEVAL RULED THAT MR MOZER HAD KEPT HIS WORD EVEN AS THE GOVERNMENT TRIED TO MISLEAD THE COURT INTO THINKING HE HADN'T ALTHOUGH MR MOZER HAGGLED OVER THE AGREEMENT'S DETAILS THE JUDGE SAID HE ALWAYS EXPRESSED A WILLINGNESS TO ABIDE BY A DRAFT VERSION IT APPEARS THAT THE GOVERNMENT HAD BECOME IRKED BY THE DEFENDANT'S INDEPENDENT AND UNCOOPERATIVE ATTITUDE THE JUDGE SAID IN A RULING HE CALLED THE GOVERNMENT'S RESPONSE INAPPROPRIATE AND UNJUSTIFIED ORDINARILY DEFENDANTS WHO HAVE COOPERATION AGREEMENTS WITH THE GOVERNMENT ARE SUBMISSIVE THEY CANNOT AFFORD TO ALIENATE THE PROSECUTOR THE JUDGE SAID THIS DEFENDANT FOR WHATEVER REASON WAS APPARENTLY WORRYING LESS ABOUT PLEASING THE PROSECUTOR AND MORE ABOUT PROTECTING HIS FLANK FROM EXPOSURE TO FURTHER PROSECUTION BY THE ANTITRUST DIVISION AND POTENTIAL CIVIL LIABILITIES JUDGE LEVAL DIDN'T ADDRESS WHETHER THE PLEA AGREEMENT AFFECTS POSSIBLE ANTITRUST ALLEGATIONS THE GOVERNMENT ALSO ARGUED THAT IT HAS THE POWER TO WITHDRAW A PLEA AGREEMENT AT ANY TIME JUDGE LEVAL SAID THAT GENERALLY THE GOVERNMENT CAN WITHDRAW A PLEA AGREEMENT FOR ANY LEGITIMATE REASON BUT IN THIS CASE HE SAID HE RULED AGAINST PROSECUTORS BECAUSE HE FOUND THEY HAD MISLED THE COURT BY ACCUSING MR MOZER OF BREAKING THE AGREEMENT THE US ATTORNY'S OFFICE IN MANHATTAN WHICH IS HANDLING THE MOZER CASE SAID IN A STATEMENT WE RESPECTFULLY DISAGREE WITH JUDGE LEVAL'S CONCLUSIONS CONCERNING THE GOVERNMENT'S CONDUCT IN THIS MATTER HOWEVER WE HAVE DECIDED NOT TO APPEAL THAT DECISION AND WE WILL GO FORWARD WITH MR MOZER'S PLEA COMPANIES CAN BE ASSESSED PUNITIVE DAMAGES REPEATEDLY FOR THE SAME CONDUCT A FEDERAL APPEALS COURT HAS RULED PUNITIVE DAMAGES ARE AWARDED IN ADDITION TO COMPENSATORY DAMAGES AND ARE INTENDED TO PUNISH PARTICULARLY EGREGIOUS ACTS AND TO HELP DETER SUCH ACTS IN THE FUTURE THE DEFENDANT IN THIS CASE OWENSCORNING FIBERGLAS CORP AN ASBESTOS MANUFACTURER ARGUED THAT ASBESTOS MAKERS HAVE BEEN PUNISHED ENOUGH IN THE HUNDREDS OF CASES FILED AGAINST THEM AND THAT THE AVALANCHE' OF COMPENSATORY CLAIMS IS MORE THAN SUFFICIENT TO SERVE THE GOALS OF DETERRENCE AND PUNISHMENT BUT THE THIRD US CIRCUIT COURT OF APPEALS IN PHILADELPHIA RULED THAT ALTHOUGH DEFENDANTS ARE FREE TO ARGUE THAT INDIVIDUAL PUNITIVE DAMAGE AWARDS VIOLATE THEIR DUEPROCESS RIGHTS THE CONSTITUTION DOESN'T AUTOMATICALLY PROTECT THEM FROM MULTIPLE AWARDS THE COURT ACKNOWLEDGED THAT THERE IS A NATIONAL PROBLEM FLOWING FROM MASS EXPOSURE TO ASBESTOS PRODUCTS BUT IT DECLINED TO ADOPT AN ACTIVIST ROLE ON WHAT IS ESSENTIALLY A POLICY MATTER THE US SUPREME COURT HAS REFUSED SO FAR TO CONSIDER THE MULTIPLEAWARDS ISSUE ALTHOUGH OTHER COURTS HAVE UPHELD MULTIPLE PUNITIVE AWARDS CRITICS OF SUCH AWARDS VIEWED THIS CASE AS AN OPPORTUNITY TO CHANGE THE LAW TRADITIONALLY FEDERAL COURTS HAVE BEEN RELUCTANT TO ALTER CIVILLIABILITY LAWS OF INDIVIDUAL STATES BUT SINCE THE CASE WAS FILED IN A TERRITORY THE VIRGIN ISLANDS WHICH HAS NO STATE SUPREME COURT OF ITS OWN SOME LEGAL SPECIALISTS BELIEVED THE FEDERAL APPEALS COURT MIGHT EXERCISE BROADER THAN USUAL DISCRETION INDEED JUDGE JOSEPH WEIS ADVOCATED SUCH AN APPROACH IN HIS DISSENT WHICH ARGUED AGAINST ALLOWING MULTIPLE AWARDS IN ASBESTOS CASES WE WRITE ON A CLEAN SLATE JUDGE WEIS WROTE WE ARE NOT BOUND NOR EXCUSED BY MISTAKEN DETERMINATIONS IN OTHER JURISDICTIONS IN THE PAST FOUR OTHER JUDGES OF THE 13JUDGE PANEL THAT HEARD THE CASE SAID THEY AGREED AT LEAST PARTIALLY WITH JUDGE WEIS'S OPINION DUNN VS HOVIC THIRD US CIRCUIT COURT OF APPEALS NO WHO'S NEWS ELLIS R MIRSKY FORMER VICE PRESIDENT OF LITIGATION MANAGEMENT FOR GAF CORP HAS JOINED LITIGATION SCIENCES INC A JURYCONSULTING FIRM BASED IN LOS ANGELES AS ITS FIRST GENERAL COUNSEL MICHAEL K WYATT FORMER ASSOCIATE DEPUTY SECRETARY AT THE US DEPARTMENT OF LABOR HAS JOINED THE LAW FIRM PROSKAUER ROSE GOETZ & MENDELSOHN IN ITS LABOR DEPARTMENT HE WILL SERVE AS SPECIAL COUNSEL IN THE NEW YORK FIRM'S WASHINGTON DC OFFICE EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9307290117 930729 INTERNATIONAL BRIEF PETROBRAS EARNINGS SURGED IN FIRST HALF ON CUTS IN OPERATIONAL COSTS BRAZIL'S STATE OIL MONOPOLY PETROBRAS SAID NET INCOME IN THE FIRST HALF SURGED TO 269 MILLION FROM 26 MILLION A YEAR EARLIER ASSISTANT FINANCIAL DIRECTOR JOSE DE MELO SAID THE IMPROVED PERFORMANCE WAS BECAUSE OF CUTS IN OPERATIONAL AND FINANCING COSTS HE SAID PETROBRAS HAD RESTRUCTURED ITS DEBT PROFILE FROM SHORT TERM TO LONG TERM MR MELO SAID PETROBRAS'S DEBT IN JUNE TOTALED 45 BILLION UP FROM 42 BILLION A YEAR EARLIER THE BRAZILIAN GOVERNMENT OWES PETROBRAS ABOUT 387 BILLION MINES AND ENERGY MINISTER PAULINO CICERO SAID RETAIL FUEL PRICES WHICH ARE SET BY THE GOVERNMENT WERE 42 BELOW WHAT THEY SHOULD BE INCREASES HAVE BEEN DELAYED TO AVOID HEATING UP INFLATION OF 30 A MONTH 9307290116 930729 ECONOMY DURABLE GOODS ORDERS JUMPED BY 38 IN JUNE DESPITE HEALTHY INCREASE ANALYSTS STAY CAUTIOUS ABOUT MANUFACTURING BY JONATHAN MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR BIGTICKET FACTORY ITEMS JUMPED A BRISK 38 IN JUNE THE FIRST INCREASE SINCE FEBRUARY BUT ANALYSTS SAID THE MANUFACTURING SECTOR IS STILL WEAK THE COMMERCE DEPARTMENT SAID ORDERS FOR DURABLE GOODSITEMS EXPECTED TO LAST THREE YEARS OR MORETOTALED 13159 BILLION LAST MONTH THE STRONG RISE WAS ENCOURAGING BECAUSE THE MANUFACTURING SECTOR AFTER A STRONG PERFORMANCE LAST YEAR HAD SLACKENED EARLIER THIS YEAR BUT ANALYSTS WERE STILL CAUTIOUS THIS IS NO TURNING POINT BUT IT'S THE FIRST GOOD NEWS WE'VE HAD IN MANUFACTURING IN A LONG TIME SAID PRISCILLA LUCE TRUMBULL DIRECTOR OF INDUSTRIAL ANALYSIS FOR WEFA GROUP THE CAUTION STEMS IN PART FROM THE FACT THAT THE LARGEST INCREASE IN ORDERS LAST MONTH WAS A 151 JUMP IN ORDERS FOR TRANSPORTATION EQUIPMENT THAT CATEGORY OF ORDERS WHICH FREQUENTLY IS QUITE VOLATILE LARGELY REFLECTED HIGHER ORDERS FOR AIRCRAFT AND PARTS EXCLUDING AIRCRAFT AND PARTS DURABLE GOODS ORDERS ROSE A FAR MORE MODEST 07 ORDERS IN OTHER SECTORS OUTSIDE TRANSPORTATION WERE LACKLUSTER STONE CLAY AND GLASS PRODUCTS INDUSTRIAL MACHINERY AND EQUIPMENT AND LUMBER AND WOOD PRODUCTS ALL DECLINED THE FIGURES ALSO SUGGESTED THAT EMPLOYMENT IN THE MANUFACTURING SECTOR ISN'T LIKELY TO INCREASE ANYTIME SOON UNFILLED ORDERS DROPPED FOR THE FOURTH CONSECUTIVE MONTH HITTING THEIR LOWEST LEVEL SINCE AUGUST 1988 THAT MEANS FACTORIES AREN'T HAVING TROUBLE MEETING DEMAND WITH THEIR CURRENT WORK FORCE SOME ANALYSTS BLAME PROBLEMS IN THE INDUSTRIAL SECTOR ON BUILTUP INVENTORIES STOCKPILES INCREASED SO MUCH IN THE FIRST QUARTER THAT MANY FACTORIES HAVE SLOWED PRODUCTION SCHEDULES UNTIL WE WORK INVENTORIES DOWN TO COMFORTABLE LEVELS THERE WILL BE NO NEW LIFE IN THE INDUSTRIAL SECTOR SAID DONALD E MAUDE CHIEF US ECONOMIST FOR SCOTIAMCLEOD INC ALL THE FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9307290115 930729 WHO'S NEWS XYLOGICS INC XYLOGICS INC BURLINGTON MASS BRUCE SACHS WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER OF COMPUTER NETWORKING PRODUCTS HE WAS FORMERLY EXECUTIVE VICE PRESIDENT THE COMPANY HAD PREVIOUSLY SAID MR SACHS 34 YEARS OLD WOULD BE NAMED CHIEF EXECUTIVE HE SUCCEEDS BRUCE BERGMAN 51 WHO REMAINS AS A DIRECTOR IN A NEWS RELEASE MR BERGMAN WHO WAS THE COMPANY'S CHIEF EXECUTIVE FOR 10 YEARS SAID I BELIEVE THAT CHANGE IS HEALTHY FOR INDIVIDUALS AND ORGANIZATIONS AND HAVE THEREFORE IMPOSED A 10YEAR TERM LIMIT ON MYSELF AT THE COMPANY'S HELM 9307290114 930729 WHO'S NEWS CYTOGEN CORP CYTOGEN CORP PRINCETON NJ MARTIN D CLEARY GROUP VICE PRESIDENT AND CHIEF FINANCIAL OFFICER RESIGNED EFFECTIVE AUG 31 TO BECOME PRESIDENT AND CHIEF EXECUTIVE OF A NEW BIOTECHNOLOGY COMPANY THERAGEN INC UNTIL A SUCCESSOR IS NAMED JOSEPH M PAIVA DIRECTOR OF FINANCE WILL ASSUME MR CLEARY'S RESPONSIBILITIES MR CLEARY 48 YEARS OLD WHO WAS WITH CYTOGEN FOR MORE THAN SEVEN YEARS SAID THE DECISION WAS DIFFICULT BUT THE ALLURE OF LEADING AN EARLY START GENE THERAPY COMPANY PROVED TO BE IRRESISTIBLE CYTOGEN A BIOPHARMACEUTICAL COMPANY FOCUSES ON CANCER DIAGNOSIS AND THERAPY 9307290113 930729 MARKETING & MEDIA DOW JONES TO ENTER VENTURE LAUNCHING NEWS CHANNEL IN ASIA NEW YORK DOW JONES & CO SAID IT REACHED AGREEMENT WITH ASIA BUSINESS NEWS SINGAPORE PTE LTD FOR DOW JONES TO BECOME A SHAREHOLDER IN ASIA BUSINESS NEWS A VENTURE LAUNCHING ASIA'S FIRST SATELLITE NEWS CHANNEL COVERING ONLY BUSINESS FINANCIAL AND ECONOMIC NEWS ASIA BUSINESS NEWS WHICH WILL REPORT AND INTERPRET BUSINESS DEVELOPMENTS FROM AN ASIAN PERSPECTIVE WILL DRAW ON THE WORLDWIDE NEWS RESOURCES OF DOW JONES AND ITS PUBLICATIONS AND SERVICES INCLUDING THE ASIAN WALL STREET JOURNAL THE FAR EASTERN ECONOMIC REVIEW AND DOW JONES TELERATE DOW JONES ENTERED THE VENTURE FOLLOWING THE DECISION OF BUSINESS NEWS NETWORK LTD OF HONG KONG TO REDUCE ITS SHAREHOLDING ASIA BUSINESS NEWS SHAREHOLDERS WILL BE DOW JONES TELEVISION NEW ZEALAND AND TELECOMMUNICATIONS INC ENGLEWOOD COLO EACH WITH 295 SIM VENTURES PTE LTD A SINGAPOREBASED COMPANY 10 AND BUSINESS NEWS NETWORK A PRIVATELY HELD HONG KONG COMPANY 15 ASIA BUSINESS NEWS IS SCHEDULED TO GO ON THE AIR IN LATE 1993 WITH HEADQUARTERS IN SINGAPORE NEWS BUREAUS IN HONG KONG AND OTHER MAJOR ASIAN CITIES WILL FOLLOW 9307290112 930729 KODAK POSTS HIGHERTHANEXPECTED NET IN 2ND PERIOD PARTLY DUE TO COST CUTTING BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO BENEFITING FROM COST CUTTING AND A JUNE SALES SURGE REPORTED HIGHERTHANEXPECTED SECONDQUARTER NET INCOME OF 371 MILLION OR 113 A SHARE THE EARNINGS ROSE 28 FROM YEAREARLIER NET OF 361 MILLION OR 111 A SHARE THE MOST RECENT QUARTER'S EARNINGS INCLUDED A CHARGE OF 12 MILLION FOR THE EARLY RETIREMENT OF DEBT AND A GAIN OF 79 MILLION FROM DISCONTINUED OPERATIONS REFLECTING EARNINGS FROM EASTMAN CHEMICAL WHICH KODAK PLANS TO SPIN OFF SALES AT THE ROCHESTER NY PHOTOGRAPHY HEALTHCARE AND CHEMICALS CONCERN DECREASED SLIGHTLY TO 427 BILLION FROM 429 BILLION ANALYSTS HAD EXPECTED A PROFIT OF ABOUT 106 A SHARE BECAUSE OF WEAK SALES TRENDS FOR APRIL AND MAY THE EARNINGS SURPRISE SENT KODAK'S STOCK UP 1375 A SHARE TO CLOSE AT 52375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SEPARATELY KODAK TOLD ANALYSTS THAT ITS CORE FILM PRODUCT MAINTAINED MARKET SHARE AGAINST PRIVATE LABEL COMPETITORS IN THE QUARTER AFTER LOSING SOME IN THE FIRST QUARTER THE NEWS STAYED FEARS THAT KODAK MIGHT DO SOMETHING WILD CRAZY AND DISASTROUS TO COMPETE SAID WERTHEIM SCHROEDER ANALYST MICHAEL ELLMANN MANY ANALYSTS HAD FEARED KODAK WOULD SLASH PRICES AS WAS THE CASE WITH MARLBORO CIGARETTES IN A NEWS RELEASE KODAK CHAIRMAN KAY R WHITMORE SAID THE SECONDQUARTER RESULTS ARE A SATISFACTORY BEGINNING WHICH WAS CONSISTENT WITH OUR OPERATING PLAN FOR 1993 HE REPEATED HIS PREVIOUS PROMISE THAT KODAK WILL DELIVER MODERATELY HIGHER SALES THIS YEAR SOLID EARNINGS FROM OPERATIONS AND POSITIVE CASH FLOW ANALYSTS EXPECT 1993 EARNINGS TO RISE 10 TO 15 FROM LAST YEAR'S PROFIT FOR 1992 KODAK EARNED 115 BILLION OR 353 A SHARE AFTER A 141 MILLION RESTRUCTURING CHARGE AND A 152 MILLION ACCOUNTING GAIN REVENUE WAS 202 BILLION MR WHITMORE ALSO REPORTED GOOD PROGRESS ON DEVELOPMENT OF THE TURNAROUND PLAN HE HAS PROMISED TO DELIVER BY SEPTEMBER KODAK OFFICIALS DECLINED FURTHER COMMENT THE COMPANY SIGNIFICANTLY IMPROVED ITS BALANCE SHEET IN THE QUARTER LONG CRITICIZED FOR SPENDING TOO MUCH KODAK SLASHED CAPITAL EXPENDITURES FOR THE QUARTER NEARLY 40 TO 324 MILLION FROM 538 MILLION A YEAR EARLIER IN KODAK'S CORE IMAGING UNIT WORLDWIDE EARNINGS FROM OPERATIONS EDGED DOWN 2 TO 475 MILLION FROM 483 MILLION A YEAR AGO SALES EASED 2 TO 2 BILLION FROM 204 BILLION A YEAR EARLIER KODAK'S FLAGSHIP KODACOLOR FILM POSTED NEARRECORD VOLUME GAINS BUT THOSE GAINS WERE OFFSET BY LOWER EFFECTIVE SELLING PRICES AS DEALERS WON DISCOUNTS FOR BUYING IN MASSIVE QUANTITIES KODAK TOLD ANALYSTS THE INFORMATION SYSTEMS UNIT SURPRISED ANALYSTS BY TURNING IN ITS SECOND SOLID QUARTER IN A ROW WORLDWIDE EARNINGS FROM OPERATIONS WERE 48 MILLION ON SALES OF 953 MILLION COMPARED WITH A LOSS OF 31 MILLION ON SALES OF 1 BILLION A YEAR EARLIER KODAK ATTRIBUTED THE GAIN TO LOWER COSTS FOR MANUFACTURING MARKETING ADMINISTRATION AND RESEARCH AND DEVELOPMENT THE HEALTH UNIT TURNED IN A LACKLUSTER PERFORMANCE AS RESEARCH AND DEVELOPMENT COSTS AND ADVERTISING FOR BAYER SELECT PAINKILLER MORE THAN OFFSET SOLID SALES GAINS WORLDWIDE EARNINGS FROM OPERATIONS WERE DOWN 2 TO 162 MILLION FROM 166 MILLION A YEAR EARLIER SALES WERE 131 BILLION UP 5 FROM 125 BILLION THE CHEMICAL UNIT REPORTED WORLDWIDE EARNINGS FROM OPERATIONS OF 138 MILLION UP 6 FROM 130 MILLION A YEAR EARLIER SALES ROSE 6 TO 103 BILLION FROM 973 MILLION 9307290111 930729 UP NORTH THERE ARE THOUSANDS OF SITES WHERE WASHINGTON SLEPT BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL ARKANSAS IS FIGHTING OVER PRESIDENT CLINTON HOPE ARK BOASTS THAT IT IS THE BIRTHPLACE OF BILL CLINTON HOT SPRINGS SAYS IT IS THE PRESIDENT'S HOMETOWN FAYETTEVILLE IS THE FIRST FAMILY'S FIRST HOME AND LITTLE ROCK IS SIMPLY HOME TO A PRESIDENT WHAT'S AN ARKANSAS TRAVELER TO DO THE CROSS CLAIMS ARE AN IRRITANT SAYS RICHARD DAVIES DIRECTOR OF THE ARKANSAS DEPARTMENT OF PARKS AND TOURISM THE REASON EACH IS LEGITIMATE IN ITS OWN WAY BUT ALSO THE QUESTION ARISES WHO IS REALLY NO 1 IN TRUE CLINTONESQUE FASHION THE ANSWER IS THEY ALL ARE MR DAVIES'S AGENCY HAS PLACED BROCHURES FROM EACH LOCALITY INTO A VERY PRESIDENTIALLOOKING TRAVEL FOLDER ENTITLED THE PRESIDENTIAL CITIES OF ARKANSAS TO DATE 25000 HAVE BEEN PRINTED THE HOPE FLIER FEATURES A BABY PICTURE OF THE 42ND PRESIDENT A LAUDATORY QUOTATION FROM HIS ELEMENTARYSCHOOL PRINCIPAL EDITH BROWN AND A FEW CLINTON FACTS HE WAS BIG FOR HIS AGE A LITTLE CLUMSY AND ESPECIALLY FOND OF HIS COWBOY BOOTS MR CLINTON MOVED TO HOT SPRINGS AT AGE SIX AND LIVED THERE THROUGH HIGH SCHOOL NO LANDMARK IS TOO INSIGNIFICANT TO GO UNMENTIONED TOURISTS ARE INSTRUCTED HOW TO GET TO MR CLINTON'S HAMBURGER HANGOUT THE SITE OF HIS PROM AND EVEN HIS BOYHOOD BOWLING ALLEY PRESIDENT CLINTON AND HIS FRIENDS SPENT MANY HOURS TRYING TO KNOCK DOWN PINS AT CENTRAL BOWLING LANES IT STATES FAYETTEVILLE HAS THE WEAKEST CLINTON CONNECTION HE LIVED THERE FOR ONLY THREE YEARS AFTER LAW SCHOOL BEFORE MOVING TO LITTLE ROCK AS THE STATE'S ATTORNEY GENERAL STILL A TOURIST IS REGALED WITH CLINTON LORE AND TOLD TO VISIT THE DLUX CAFE WHERE MR CLINTON ATE AND ACTED AS A PROPONENT FOR CHANGE MR CLINTON LIVED IN LITTLE ROCK FOR 16 YEARS VISITORS ARE DIRECTED TO THE YMCA WHERE THE FORMER GOVERNOR WORKED OUT AND THE PUBLIC SCHOOL THAT CHELSEA CLINTON ATTENDED BUT THIS IS JUST SKIMMING THE SURFACE THERE'S AN ENORMOUS TOURISM INTEREST SAYS SKIP RUTHERFORD A FRIEND OF MR CLINTON'S AND A LITTLE ROCK PUBLICRELATIONS EXECUTIVE PEOPLE ARE EVEN VISITING THE MCDONALD'S ON BROADWAY WHERE HE HAD COFFEE DURING HIS JOGS 9307290110 930729 LLOYD'S OF LONDON ATTEMPTS TO SECURE CORPORATE INVESTORS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LLOYD'S OF LONDON HOPES TO RAISE AS MUCH AS 225 BILLION FROM CORPORATE INVESTORS OFFICIALS SAID BUT THAT JOB MIGHT BE HARDER IN LIGHT OF A NEW STANDARD & POOR'S CORP REPORT THAT SAYS LLOYD'S DOES NOT APPEAR TO OFFER THE HIGHEST LEVEL OF SECURITY LLOYD'S WHICH HAS BEEN HIT BY LOSSES OF 8 BILLION IN RECENT YEARS IS LOOKING FOR US INVESTORS TO BAIL OUT THE STRUGGLING INSURANCE MARKET UNDER ITS RULES THE INSURANCE MARKET GOES OUT EVERY YEAR TO RENEW EXISTING CAPITAL COMMITMENTS AND RAISE ADDITIONAL CAPITAL FOR 1994 LLOYD'S EXPECTS TO HAVE ABOUT 1275 BILLION IN CAPITAL WITH 105 BILLION COMING FROM ITS INDIVIDUAL MEMBERS OR NAMES THE REST WOULD COME FROM CORPORATE INVESTORS SAYS CHIEF EXECUTIVE OFFICER PETER MIDDLETON NAMES HAVE UNLIMITED LIABILITY FOR LOSSES WHILE LOSSES FOR CORPORATE MEMBERS WOULD BE LIMITED TO THE AMOUNT THEY INVEST PREVIOUSLY CORPORATE INVESTORS WEREN'T ALLOWED TO INVEST IN LLOYD'S BUT WERE INVITED IN AS PART OF A SWEEPING RESTRUCTURING OF THE INSURANCE MARKET SO FAR MORE THAN 100 INVESTORS OR INVESTOR GROUPS EXPRESSED INTEREST IN BECOMING CORPORATE INVESTORS US INVESTMENT BANKS ARE WORKING TO SET UP COMPANIES TO INVEST IN LLOYD'S BUT BOTH AWAIT FINAL RULES GOVERNING THOSE INVESTMENTS LLOYD'S WILL RELEASE THE RULES SOON BUT IS FACING A SELFIMPOSED DEADLINE LLOYD'S WANTS TO HAVE COMMITMENTS FROM CORPORATE INVESTORS BY OCTOBER IN TIME FOR THE 1994 UNDERWRITING YEAR LLOYD'S WHICH IS MORE LIKE A STOCK EXCHANGE THAN AN INSURANCE COMPANY IS A COLLECTION OF SYNDICATES THAT UNDERWRITE INSURANCE IN THE PAST THE SYNDICATES OFTEN HAVE PARTICIPATED IN ONE ANOTHER'S RISKS WHICH CAUSED PERVASIVE PROBLEMS IN THE ORGANIZATION S&P IN ITS FIRST REPORT ON LLOYD'S NOTED THAT LLOYD'S ALWAYS HAS PAID VALID CLAIMS IN THE PAST BUT THE RATING AGENCY RAISED QUESTIONS ABOUT FUTURE PERFORMANCE LLOYD'S HASN'T ASKED TO BE RATED BUT IF IT DID S&P WOULD NOT GIVE ITS HIGHEST MARKS THE REPORT SAYS S&P CITED UNCERTAINTY ABOUT THE QUALITY OF LLOYD'S ASSETS INSURANCE RESERVES AND ITS ACCESS TO CAPITAL ROSETINTED ASSUMPTIONS ABOUT ABOUT LLOYD'S FUTURE SECURITY ARE SIMPLY NOT TENABLE WROTE S&P ANALYST JOHN GARDNER LLOYD'S CHAIRMAN DAVID ROWLAND SAID THE S&P REPORT CORRECTLY IDENTIFIES PROBLEMS BUT THAT THOSE PROBLEMS ARE BEING ADDRESSED HE SAID HE AND MR MIDDLETON WILL BE VISITING INSURANCE BUYERS IN NEW YORK CHICAGO HOUSTON AND LOS ANGELES TO ANSWER THEIR CONCERNS 9307290109 930729 REVIEW & OUTLOOK EDITORIAL BILL'S BACKYARD PRESIDENT CLINTON'S TAX INCREASES RAN INTO MORE TURBULENCE THIS WEEK WITH DEMOCRATIC SENATOR DAVID BOREN URGING HIM TO WITHDRAW HIS BUDGET AND START OVER CNN POLLED THE SIX DEMOCRATIC SENATORS WHO VOTED NO ON THE CLINTON BUDGET THE FIRST TIME AND FOUND ALL WERE STILL LEANING AGAINST IT EVEN SENATORS WHO VOTED WITH MR CLINTON WORRY ABOUT THE POLITICAL FALLOUT THEY SHOULD THIS WEEK THE PRESIDENT'S HOME STATE OF ARKANSAS SENT WASHINGTON A POWERFUL MESSAGE WHEN IT VOTED FOR AN ANTITAX REPUBLICAN OVER A FORMER TOP CLINTON AIDE ONLY TWO REPUBLICANS HAVE BEEN ELECTED STATEWIDE IN ARKANSAS IN THE PAST 24 YEARS BILL CLINTON IS RESPONSIBLE FOR BOTH VICTORIES FRANK WHITE DEFEATED GOVERNOR CLINTON IN 1980 AFTER HE APPOINTED A CREW OF LIBERAL ADVISERS AND RAISED FEES THIS WEEK REPUBLICAN MIKE HUCKABEE WON A HIGHTURNOUT ELECTION FOR LT GOVERNOR EVEN DEMOCRATS AGREE THAT MR HUCKABEE'S WIN IS SIGNIFICANT MR HUCKABEE'S 51 VICTORY OVER DEMOCRAT NATE COULTER WAS CLOSE ENOUGH THAT VOTERS WHO WANTED TO EXPRESS THEIR CONCERN WITH THE CLINTON ADMINISTRATION CLEARLY MADE THE DIFFERENCE BILL PASCHALL A COULTER POLITICAL CONSULTANT WARNED LAST WEEK THAT A GOP VICTORY COULD GIVE PRESIDENT CLINTON A BLACK EYE HE TOLD THE ARKANSAS DEMOCRAT THIS IS A RACE WITH NATIONAL IMPLICATIONS LIKE THE TEXAS SENATE RACE HE'S RIGHT VOTERS IN BOTH STATES HAVE MADE IT CLEAR THEY AREN'T HAPPY WITH WHAT'S GOING ON IN WASHINGTON MR HUCKABEE RAN AGAINST A DEMOCRATIC MACHINE THAT PULLED OUT ALL THE STOPS AGAINST HIM MR COULTER A 33YEAROLD CLINTON WANNABEE HAD SERVED AS LEGAL COUNSEL TO GOVERNOR CLINTON HE ALSO REPRESENTED THE LEAGUE OF WOMEN VOTERS IN ITS ATTEMPT TO BLOCK TERM LIMITS IN ARKANSAS MR HUCKABEE ON THE OTHER HAND IS A BROADCASTING EXECUTIVE AND FORMER PRESIDENT OF THE ARKANSAS BAPTIST CONVENTION THE 37YEAROLD MR HUCKABEE WAS LIKE PRESIDENT CLINTON BORN IN A PLACE CALLED HOPE ARK HE JOKES THAT HIS POLITICS ARE DIFFERENT BECAUSE HE ACTUALLY GREW UP THERE AND DIDN'T MOVE TO A BIG CITY AS THE YOUNG BILL CLINTON DID THE CAMPAIGN WAS A CLASSIC LIBERALCONSERVATIVE CONFRONTATION MR HUCKABEE OPPOSED A TAX ON SODA POP PASSED THIS YEAR TO FUND A MEDICAID DEFICIT THAT WAS DISCOVERED AFTER BILL CLINTON LEFT FOR WASHINGTON MR HUCKABEE FAVORED FULL CHOICE IN EDUCATION AND ATTACKED THE STATE'S CONDOM DISTRIBUTION PROGRAM RUN BY JOYCELYN ELDERS BILL CLINTON'S NOMINEE FOR SURGEON GENERAL MR HUCKABEE SAYS THAT EVERYWHERE HE WENT HE MET VOTERS WHO WANTED AN OPPORTUNITY TO EXPRESS THEIR ANGER AT THE TAX INCREASES COMING OUT OF WASHINGTON MR COULTER ON THE OTHER HAND TOUTED HIS CONNECTIONS TO THE CLINTON ADMINISTRATION AND WARNED OF GRIDLOCK IF THE GOVERNOR AND LIEUTENANT GOVERNOR WERE OF DIFFERENT PARTIES THE VOTERS WEREN'T IMPRESSED BY MR COULTER'S ARGUMENTS AND HIS TIES TO THE PRESIDENT DIDN'T HELP BILL CLINTON'S POPULARITY IN HIS HOME STATE HAS TAKEN A TUMBLE SINCE LAST YEAR WHEN ARKANSAS WAS THE ONLY STATE IN THE NATION TO GIVE HIM A MAJORITY OF THE VOTE A NEW MASONDIXON POLL OUT THIS WEEK NOTES THAT ONLY 36 OF ARKANSAS VOTERS THINK MR CLINTON IS DOING AN EXCELLENT OR GOOD JOB WHILE 63 RATE HIM ONLY FAIR OR POOR MR HUCKABEE'S SURPRISING VICTORY SHOULD INCREASE THE ANXIETY LEVEL OF DEMOCRATS UP FOR REELECTION NEXT YEAR THEY NOW FRET ABOUT THE SHORTTERM EMBARRASSMENT TO THEIR PARTY IF THEY DEFEAT PRESIDENT CLINTON'S BUDGET PERHAPS THEY SHOULD WORRY MORE ABOUT THE LONGTERM ELECTORAL DAMAGE THEY MAY SUFFER SHOULD THEY BEAR SOLE RESPONSIBILITY FOR THE LARGEST TAX INCREASE IN AMERICAN HISTORY 9307290108 930729 LEHMAN BROTHERS GETS SET TO FACE A BRAVE NEW WORLD BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ON WALL STREET WITH EVERY CORPORATE DIVORCE YOU GET A FREE TSHIRT ON MONDAY EMPLOYEES OF LEHMAN BROTHERS INC WILL WALK INTO THE FIRM'S WORLD FINANCIAL CENTER HEADQUARTERS AND FIND ON THEIR DESKS A LETTER FROM THE PRESIDENT ANNOUNCING THE COMPANY'S INDEPENDENCE A CORPORATE HISTORY AND A TSHIRT WITH TASTEFUL TINY LETTERING LEHMAN BROTHERS SINCE 1850 WELL NOT QUITE WHAT LEHMAN IS TRYING SO HARD TO FORGET AND HOPES ITS INVESTMENTBANKING CLIENTS WILL TOO IS ITS NINE YEARS AS THE INGLORIOUS SECOND NAME IN SHEARSON LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO THE SHEARSON LEHMAN SPLIT BECOMES LEGAL IN STAGES OVER THE NEXT FEW DAYS PAVING THE WAY FOR MONDAY'S BOUT OF CORPORATE AMNESIA AND AN EVENTUAL SPINOFF OF LEHMAN AS A PUBLIC COMPANY FROM AMERICAN EXPRESS THE CLOCK IS TICKING FOR LEHMAN IN ORDER TO GO PUBLIC BEFORE THE INEVITABLE BUST OF WALL STREET'S RAGING UNDERWRITING BOOM ALREADY 2 1/2 YEARS OLD LEHMAN HAS AT MOST A YEAR OR TWO TO PROVE IT CAN FLY SOLO AGAIN MONEY MANAGERS ANALYSTS AND EVEN RIVALS SAY WHAT LEHMAN HAS GOING FOR IT IS A REPUTATION FOR CLIENT SERVICE AND A NAME THAT STILL CARRIES TREMENDOUS CACHET ON WALL STREET BUT THE FIRM IS LOSING THE HUGE SHEARSON RETAIL NETWORK A MAJOR SELLING POINT TO CLIENTS ITS MARKET CLOUT AND TRADING POWER ARE HOBBLED BY ITS 2 BILLION IN EQUITY CAPITAL ONLY HALF THE PLAY MONEY THAT SOME OF ITS COMPETITORS HAVE IT'S FIGHTING A PERCEPTION THAT IT SELLS BONDS MUCH BETTER THAN STOCKS AND IT IS FEVERISHLY NOSTALGIC FOR LEHMAN BROTHERS KUHN LOEB INC A COMPANY THAT ESSENTIALLY DIDN'T WORK THE FIRST TIME SHEARSON AND LEHMAN ANNOUNCED IN MARCH THEY WERE GOING THEIR SEPARATE WAYS AFTER A NINEYEAR MERGER THAT EMPLOYEES OF BOTH NOW ADMIT NEVER QUITE JELLED LEHMAN BROTHERS KUHN LOEB IMPLODED IN 1984 OVER BITTER TURF BATTLES AMONG THE PARTNERS THE TWO HAD BEEN OPERATING AS SEPARATE ENTITIES SINCE 1990 WHEN LEHMAN PREPARING FOR A SPLIT PUT TOGETHER EVERYTHING FROM ITS OWN BUSINESS CARDS TO BASEBALL CAPS TO BANKING DIVISION NOW RETAIL POWERHOUSE SHEARSON WILL JOIN PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO BROKERAGE UNIT ELEGANT LEHMAN WILL REMAIN A UNIT OF AMERICAN EXPRESS AT LEAST TEMPORARILY HOW WILL IT COMPETE OLDFASHIONED INVESTMENT BANKING AND RELATIONSHIP BUILDING SAYS PRESIDENT RICHARD FULD JR LEHMAN ALWAYS HAS BEEN THE SCRAPPIEST FIRM HE ADDS IT ALREADY HAS STARTED WITH SOME GOOD OLDFASHIONED BUYING OF MARKET SHARE RIVALS GROUSE AND BIGMONEY TALENT RAIDS OF BANKERS FROM ITS COMPETITION LEHMAN MANAGING PARTNER T CHRISTOPHER PETTIT BRAGS THE FIRM HAS HIRED OR HIRED BACK ABOUT TWO DOZEN TOP BANKERS AND ANALYSTS FROM SALOMON INC MERRILL LYNCH & CO AND MORGAN STANLEY GROUP SO FAR THIS YEAR BUT SHEARSON'S RETAIL SALES FORCE OF 8600 BROKERS IS GONE LEHMAN RETAINS 775 BROKERS CATERING TO WEALTHY INDIVIDUALS THOSE ARE THE BUYERS WITH THE DEEPER POCKETS BUT THEY'RE ALSO THE MORE SOPHISTICATED CLIENTELE THEY GENERALLY WON'T EAT DEALS THAT INSTITUTIONS HAVE PASSED ON SPEAKING FROM HIS CORNER OFFICE OVERLOOKING THE HUDSON RIVER AND SURROUNDED BY A DOZEN FAMILY PICTURES CHARGECARD RECEIPTS FROM SHARPER IMAGE AND A STUFFED GORILLA MR FULD DISPUTES THAT THE FIRM'S ACHILLES HEEL WILL BE THE LOSS OF SHEARSON'S 8600 RETAIL BROKERS THE RETAIL QUESTION DOES COME UP WITH CLIENTS HE CONCEDES BUT BY THE TIME WE'RE THROUGH THE FACT THAT WE'RE LEHMAN BROTHERS AND WHAT WE CAN BRING TO THEM AS A FULLSERVICE INVESTMENT BANK FAR OUTWEIGHS WHAT WE CAN DO FOR THEM ON A RETAIL DEAL THE FIRM'S INVESTMENT BANKING PROWESS IS LARGELY UNDISPUTED IT WON FIVE DEAL OF THE YEAR AWARDS FROM INSTITUTIONAL INVESTOR MAGAZINE IN 1992 BUT COMPETITORS ROUTINELY COMPLAIN THAT IT BUYS MARKET SHARE BY UNDERPRICING THE COMPETITION WHILE LEHMAN BROTHERS HAD AN 114 MARKET SHARE OF ALL THE STOCK AND BOND DEALS DONE IN THE FIRST SIX MONTHS ACCORDING TO SECURITIES DATA CO IT HAD ONLY A 78 SHARE OF THE UNDERWRITING FEES PAID IN THE INDUSTRY LEHMAN ALSO HAS A HIGHER PROPORTION OF DEBT THAN EQUITY DEALS STOCK OFFERINGS ARE USUALLY MORE LUCRATIVE BUT THE DOLLARS ADD UP LEHMAN UNDERWROTE NEW US STOCK AND BOND OFFERINGS TOTALING 606 BILLION IN THE FIRST TWO MONTHS OF THE YEAR TRAILING THE NO 2 UNDERWRITER GOLDMAN SACHS & CO BY ABOUT 8 BILLION BUT IN FEES ON THOSE DEALS LEHMAN LAGGED GOLDMAN BY A WHOPPING 3336 MILLION LEHMAN INSIDERS NOW ACKNOWLEDGE THAT AT LEAST BACK IN 1991 IT WAS TRYING TO BUY MARKET SHARE WE HAD TO GET IN THE GAME WE HAD TO GET ON THE PAGE SAID ONE SENIOR LEHMAN OFFICIAL BUT THAT'S NOT HAPPENING ANYMORE HE SAYS CLAIMING THAT CLIENTS WHO CAME TO THE FIRM BECAUSE IT OFFERED BARGAINS ARE NOW STAYING FOR ITS SERVICE IN COMING MONTHS LEHMAN WILL BE COMPETING IN THE INVESTMENTBANKING BUSINESS WITH A POWERFUL FORCE ROBERT GREENHILL THE FORMER HEIR APPARENT OF MORGAN STANLEY WHO IN JUNE WAS NAMED CHAIRMAN OF SMITH BARNEY SHEARSON AND THAT'S IN ADDITION TO ENTRENCHED INVESTMENT BANKING POWERHOUSES GOLDMAN AND MORGAN MOREOVER LEHMAN HAS ENJOYED ITS RECENT SUCCESS DURING AN UNPRECEDENTED UNDERWRITING BOOM WHAT HAPPENS WHEN THE MUSIC STOPS ASKS GUY MOSZKOWSKI ANALYST AT SANFORD C BERNSTEIN COMPETITION FOR FIXEDINCOME DEALS HAS PUSHED UNDERWRITING SPREADS THE COMPANY'S PROFIT ON A DEAL DOWN 30 IN TWO YEARS HE SAYS LEHMAN HAS MANAGED TO BE EXTRAORDINARILY PROFITABLE DESPITE THAT BECAUSE OF THE HUGE VOLUME EVENTUALLY EVERYBODY'S GOING TO BE LEFT WITH PRICING THAT'S 30 BELOW WHAT IT USED TO BE AND LESS BUSINESS IN SECONDQUARTER EARNINGS RESULTS RELEASED EARLIER THIS WEEK AMERICAN EXPRESS BROKE OUT LEHMAN'S NET INCOME FROM SHEARSON'S THAT SHOWED THAT LEHMAN GENERATED THE BULK OF THE QUARTER'S NET INCOME OR 95 MILLION OF THE 121 MILLION SHEARSON LEHMAN TOTAL LEHMAN'S REVENUE INCREASED 7 PARTLY DUE TO STRENGTH IN ITS DERIVATIVES TRADING BUSINESS AND FOREIGN EXCHANGE ACTIVITIES INVESTMENT BANKING INCOME OF 208 MILLION HOWEVER FELL 15 FROM A YEAR EARLIER MAYBE THE FIRST SIGN THAT THE UNDERWRITING BOOM IS TAILING OFF SHEARSON GETS THE MARKET CLOUT THAT WILL ENABLE IT TO GO UP AGAINST MERRILL LYNCH & CO LEHMAN BROTHERS GETS 9307290107 930729 POLITICS & POLICY SUPPORT FOR CLINTON'S ECONOMIC PLAN GROWS DESPITE SOME TAX COMPLAINTS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICANS ARE EXPRESSING MORE SUPPORT FOR PRESIDENT CLINTON'S ECONOMIC PLAN AS IT NEARS A CRUCIAL FINAL VOTE ALTHOUGH THEY AREN'T HAPPY WITH SOME OF ITS SPECIFIC TAXES ACCORDING TO A NEW WALL STREET JOURNAL/NBC NEWS POLL THE SHARE OF PEOPLE WHO SAY THEY FAVOR THE ECONOMIC PLAN HAS RISEN IN THE PAST MONTH TO 43 FROM 39 BY A LIKE AMOUNT THE PERCENTAGE OF THOSE WHO SAY THEY OPPOSE THE PLAN HAS FALLEN TO 39 FROM 44 BY A COMFORTABLE MARGIN 54 TO 32 PEOPLE SAY THE CLINTON PLAN WOULD REPRESENT A STEP IN THE RIGHT DIRECTION AND THE SURVEY INDICATES THAT MANY AMERICANS ARE SOUR ON THE CONDUCT OF MR CLINTON'S REPUBLICAN CRITICS PEOPLE ALSO SAY THAT IN NEXT YEAR'S ELECTION THEY WOULD BE MORE INCLINED TO SUPPORT A DEMOCRAT WHO VOTES FOR THE CLINTON PLAN THAN A REPUBLICAN WHO VOTES AGAINST IT AND AS THE WHITE HOUSE HAS ALWAYS HOPED THE ELEMENT OF THE PLAN THAT THE ADMINISTRATION IS COUNTING ON TO PRODUCE THE MOST REVENUE A TAX INCREASE ON WEALTHIER PEOPLE ALSO IS EASILY ITS MOST POPULAR ELEMENT THE OVERALL MESSAGE APPEARS TO BE THAT ALTHOUGH MOST PEOPLE FIND FLAWS IN THE PACKAGE THE DEMOCRATS ARE STRUGGLING TO COMPLETE THEY PREFER TO SEE IT PASSED RATHER THAN HAVE NOTHING DONE BUT THERE ALSO ARE TROUBLING FINDINGS FOR THE WHITE HOUSE IN THE NEW POLL CONDUCTED BY DEMOCRATIC POLLSTER PETER HART AND REPUBLICAN ROBERT TEETER AMERICANS SEEM AFRAID THAT THE PLAN'S TAXES ON BUSINESSES COULD HURT THE ECONOMY THEY ALSO BELIEVE THAT CONTRARY TO WHAT THE WHITE HOUSE SAYS THE MIDDLE CLASS WILL BEAR THE HEAVIEST SHARE OF THE TAX BURDEN THE FINDINGS ALSO SUGGEST THAT WHILE A WHITE HOUSE PUBLIC RELATIONS BLITZ HAS SUCCEEDED IN INCREASING SUPPORT FOR THE OVERALL PLAN MR CLINTON STILL HASN'T CONVINCED THE PUBLIC THAT IT HURTS MOSTLY THE RICH AND CUTS SPENDING ENOUGH THERE'S STILL SOME RECONCILIATION TO BE ACCOMPLISHED WITH THE AMERICAN PUBLIC BOTH ON TAXES AND SPENDING SAY MESSRS HART AND TEETER FIFTYSIX PERCENT AGREE WITH THE STATEMENT THAT BUSINESS TAXES SHOULD NOT BE RAISED BECAUSE DOING SO MIGHT HURT JOB CREATION COMPARED WITH 36 WHO SAY BUSINESS TAXES SHOULD BE RAISED TO ASSURE COMPANIES ARE PAYING THEIR FAIR SHARE EVEN SOME WHO SUPPORT THE OVERALL CLINTON PACKAGE STILL SEEM TO FEAR THE RAMIFICATIONS OF ITS TAX INCREASES OVERALL 65 OF THOSE SURVEYED SAY RAISING TAXES NOW WOULD HURT THE ECONOMY AT THE SAME TIME A LARGE PORTION OF THOSE SURVEYED 78 SAY THEY THINK MIDDLEINCOME PEOPLE WILL PAY A BIGGER SHARE OF THE NEW TAXES UNDER THE CLINTON PLAN THAN WILL UPPERINCOME PEOPLE MANY PEOPLE ALSO SEEM TO THINK SPENDING COULD BE CUT FURTHER SIX OUT OF 10 SAY THEY WOULD PREFER MOVING TOWARD MORE SPENDING CUTS RATHER THAN TAX INCREASES OR A LARGER DEFICIT IN ANY LEGISLATIVE COMPROMISES TO COMPLETE THE PLAN ON PERHAPS THE MOST CONTROVERSIAL TAX MEASURE UNDER DISCUSSION IT APPEARS THAT PEOPLE CAN BE CONVINCED TO ACCEPT THE MODEST GASOLINE TAX THAT THE SENATE INCLUDED IN ITS VERSION OF THE ECONOMIC PLAN BUT THEY OPPOSE GAS TAXES SIGNIFICANTLY BEYOND THAT PEOPLE SPLIT VIRTUALLY EVENLY WHEN ASKED WHETHER THEY FAVOR OR OPPOSE THE 43 CENTAGALLON INCREASE APPROVED BY THE SENATE BUT BY A 76 TO 22 MARGIN THEY OPPOSE A 10 CENTAGALLON GASOLINE TAX INCREASE AT THE SAME TIME THOUGH 72 OF THOSE SURVEYED SAY THEY APPROVE OF RAISING TAXES ON WEALTHY PEOPLE AND 8 OF 10 SAY THAT RAISING TAXES ON WEALTHIER PEOPLE WOULD BE VERY EFFECTIVE OR SOMEWHAT EFFECTIVE IN CUTTING THE DEFICIT THERE'S ALSO GENERAL SUPPORT FOR ANOTHER TAX MEASURE A PLAN TO TAX MOST SOCIAL SECURITY BENEFITS RECEIVED BY COUPLES EARNING OVER 40000 A YEAR BY A 51 TO 44 MARGIN THOSE SURVEYED APPROVE OF THAT STEP AS PART OF A PLAN TO REDUCE THE DEFICIT THERE'S SLIGHTLY LESS SUPPORT FOR ANOTHER STEP TO CURB AN EXPENSIVE ENTITLEMENT PROGRAM 48 FAVOR A PROPOSAL TO REDUCE PAYMENTS TO HOSPITALS AND PHYSICIANS WHO TREAT PATIENTS UNDER THE MEDICARE AND MEDICAID PROGRAMS WHILE 45 ARE OPPOSED CERTAINLY PEOPLE EXPECT TO FEEL SOME PAIN IN THE DRIVE TO CUT THE DEFICITEVEN MORE PAIN IN FACT THAN THEY ARE LIKELY TO FEEL EIGHT IN 10 THINK IT'S LIKELY THAT THEY WILL HAVE TO PAY SIGNIFICANTLY MORE FOR GASOLINE UTILITIES AND OTHER KINDS OF ENERGY AS A RESULT OF THE NEW PLAN YET IT APPEARS INCREASINGLY LIKELY THAT THERE WON'T BE ANY ENERGY TAX IN THE FINAL ECONOMIC PLAN BEYOND A GASOLINE TAX IN THE RANGE OF FOUR CENTS A GALLON SOME 65 OF THOSE SURVEYED SAY THEY THINK IT'S LIKELY THAT SMALL BUSINESSES WILL BE FORCED TO LAY OFF WORKERS OVERALL BY A 53 TO 38 MARGIN RESPONDENTS SAY THEY PREFER THE HOUSE VERSION OF THE CLINTON PLAN WHICH RAISES TAXES MORE AND CUTS SOCIAL PROGRAMS LESS THAN THE SENATE VERSION THAT'S GOOD NEWS FOR PRESIDENT CLINTON WHO GENERALLY PREFERS THE HOUSE VERSION OVER THE SENATE VERSION THE DIFFERENCES BETWEEN THE TWO ARE BEING IRONED OUT RIGHT NOW BY CONGRESSIONAL NEGOTIATORS IN THE END IT APPEARS THAT RATHER THAN ENDURE TOO MUCH PAIN MANY PEOPLE WOULD BE WILLING TO ACCEPT A PLAN THAT DOESN'T HIT MR CLINTON'S GOAL OF CUTTING THE DEFICIT BY 500 BILLION OVER FIVE YEARS BY A 61 TO 33 MARGIN THOSE IN THE SURVEY SAY PRESIDENT CLINTON SHOULD BE WILLING TO ACCEPT A DEFICIT REDUCTION OF 400 BILLION RATHER THAN 500 BILLION IF NECESSARY TO GET A PLAN THROUGH CONGRESS AND ASKED WHETHER THEY WOULD PREFER A MAJOR DRIVE TO CUT THE DEFICIT THAT INCLUDES A TAX INCREASE OR A MINOR EFFORT TO CUT THE DEFICIT THAT DOESN'T INCLUDE ONE 50 CHOOSE A MINOR EFFORT WHILE 43 PICK A MAJOR ONE THE AMERICAN PUBLIC WANTS THE DEFICIT TO BE REDUCED BUT THEY SEEM MORE READY TO GNAW THE BULLET THAN BITE THE BULLET CONCLUDES MR HART WHATEVER PROBLEMS THE SURVEY FINDS IN MR CLINTON'S DEFICITCUTTING EFFORTS IT ALSO CLEARLY SHOWS THAT REPUBLICANS FACE DISTINCT PROBLEMS BECAUSE OF THEIR FLAT OPPOSITION TO THE WHITE HOUSE EFFORT ASKED WHETHER REPUBLICANS ARE OPPOSING THE PRESIDENT FOR POLITICAL REASONS OR ARE INTERESTED IN OFFERING A REALISTIC ALTERNATIVE 64 SAY THE GOP IS ACTING FOR POLITICAL REASONS AND A MAJORITY OF THOSE SURVEYED 52 DISAPPROVE OF REPUBLICANS' DECLARATION THAT THEY WON'T SUPPORT THE EFFORT TO PASS A PLAN BECAUSE IT INCLUDES TAX INCREASES 9307290106 930729 ECONOMY TAXING PAYROLLS FOR HEALTH CARE IS OUT OF FAVOR CLINTON ADVISERS PUSH PLAN FOR EMPLOYERS TO PAY PORTIONS OF PREMIUMS BY HILARY STOUT AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ADVISERS HAVE GENERALLY RULED OUT PROPOSING A PAYROLL TAX TO FINANCE THE ADMINISTRATION'S HEALTH PLAN INSTEAD OFFICIALS ARE PUSHING A PROPOSAL THAT WOULD REQUIRE ALL EMPLOYERS TO PAY A PORTION OF EACH EMPLOYEE'S HEALTH INSURANCE PREMIUM PROBABLY 80 THOUGH MR CLINTON WILL MAKE THE FINAL DECISION A WHITE HOUSE OFFICIAL SAID ADMINISTRATION ADVISERS GENERALLY AGREE THAT BUSINESSES AND INDIVIDUALS WILL BE MORE COMFORTABLE WITH A STANDARD PREMIUM THAN A PAYROLL TAX SOME DETAILS OF THE PREMIUMBASED PLAN WERE FIRST REPORTED BY USA TODAY THE PROSPECT OF A PAYROLL TAX HAS BEEN CONTROVERSIAL MANY OF THE PRESIDENT'S AIDES BECAME ENAMORED OF THE IDEA WHICH THEY TERMED A WAGEBASED PREMIUM THIS SPRING LARGELY BECAUSE THEY CONSIDERED IT MORE PROGRESSIVE THAN ASSESSING A FLAT PREMIUM ON ALL FIRMS BUT OTHERS WITHIN THE ADMINISTRATION INCLUDING A NUMBER OF THE PRESIDENT'S ECONOMIC ADVISERS WARNED THAT FINANCING HEALTH COVERAGE THROUGH A PERCENTAGE OF PAYROLL WAS TOO RADICAL A CHANGE WHAT ADMINISTRATION OFFICIALS ARE NOW COALESCING BEHIND IS ACTUALLY A HYBRID OF THE TWO CONCEPTS THEY WANT TO REQUIRE THAT ALL EMPLOYERS PAY A PORTION OF THE MARKET PREMIUM FOR A HEALTH PLAN FOR EMPLOYEES AND THEIR DEPENDENTS BUT TO MAKE SURE PREMIUMS DON'T BREAK SMALL LOWWAGE FIRMS THE ADMINISTRATION PROBABLY WILL PROPOSE THAT EACH EMPLOYERS' SHARE OF THE PREMIUM NOT BE ALLOWED TO EXCEED A CERTAIN PERCENTAGE OF ITS PAYROLL IN A MEETING WITH MEMBERS OF THE HOUSE SMALL BUSINESS COMMITTEE YESTERDAY HILLARY RODHAM CLINTON WHO IS LEADING THE ADMINISTRATION'S EFFORTS TO OVERHAUL THE HEALTHCARE SYSTEM TOSSED OUT A CAP OF 3 TO 4 FOR SMALL LOWWAGE FIRMS AS A POSSIBILITY BUT AN ADMINISTRATION OFFICIAL SAID THOSE NUMBERS WEREN'T DEFINITE PRESIDENT CLINTON HAS BEEN PREOCCUPIED WITH HIS BUDGET PACKAGE THE MIDWEST FLOODS AND OTHER MATTERS OFFICIALS SAID AND PROBABLY WON'T TURN TO THE HARD DECISIONS ON HIS HEALTH PLAN UNTIL AFTER THE BUDGET IS PASSED PROBABLY NEXT MONTH MRS CLINTON DESCRIBED KEY COMPONENTS OF THE HEALTHCARE PACKAGE TO THE COMMITTEE IN A SESSION LASTING MORE THAN AN HOUR SHE STRESSED THE PARTS OF THE PLAN THAT ARE LIKELY TO BE ATTRACTIVE TO SMALL CONCERNS INCLUDING PHASING IN COMPLIANCE A CAP ON COSTS FOR SMALL FIRMS AND A RAINYDAY FUND TO HELP PAY HEALTHCARE COSTS FOR BUSINESS OWNERS WHO CAN'T AFFORD INSURANCE MRS CLINTON ALSO SAID SELFEMPLOYED PEOPLE WOULD BE ABLE TO DEDUCT THE ENTIRE COST OF THEIR HEALTH INSURANCE FROM THEIR TAXABLE INCOME AND THE COST OF WORKERS' COMPENSATION INSURANCE WOULD BE INCLUDED IN THE INSURANCE PREMIUMS EMPLOYERS PAY UNDER THE PLAN COMMITTEE CHAIRMAN JOHN LAFALCE D NY WHO IN THE PAST HAS SUPPORTED A SINGLEPAYER NATIONAL HEALTHCARE SYSTEM SAID AFTER THE MEETING THAT THE PLAN WILL BE SENSITIVE TO SMALL BUSINESSES THAT CAN'T AFFORD COVERAGE THE COMMITTEE'S RANKING REPUBLICAN REP JAN MEYERS OF KANSAS SAID THE PLAN MRS CLINTON OUTLINED COULD OFFER SOME STABILITY TO SMALL COMPANIES THAT ALREADY OFFER HEALTH INSURANCE BUT WOULD BE A NEW BURDEN FOR THOSE THAT DON'T IN GENERAL REPUBLICANS DON'T LIKE GOVERNMENT MANDATES SHE ADDED IT WASN'T CLEAR AFTER THE MEETING EXACTLY HOW THE PLAN WOULD HOLD DOWN COSTS FOR VERY SMALL BUSINESSES MRS MEYERS SAID THE MEETING LASTED ONLY AN HOUR AND 15 MINUTES SHE WAS TALKING FAST AND OBVIOUSLY WE WERE LISTENING FAST SHE SAID 9307290105 930729 HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1006 ADULTS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 263 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY AGE AND INCOME TO ASSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 32 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR WAS 45 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP SEE RELATED ARTICLE POLITICS & POLICY SUPPORT FOR CLINTON'S ECONOMIC PLAN GROWS DESPITE SOME TAX COMPLAINTS WSJ JULY 29 1993 9307290104 930729 RIGHTS ADVOCATES DO WRONG BY CHILDREN BY HANNAH LAPP THERE'S SOMETHING ABOUT THE NEEDS OF CHILDREN THAT APPEALS TO THE HUMAN INSIDE EVERY NORMAL HUMAN BEING THIS IS ONE REASON MANY AMERICANS FALL FOR THE MODERN CRY TO PROMOTE CHILDREN'S RIGHTS THIS AMERICAN POSSESSES ALL SUCH HUMAN FEELINGS FOR CHILDREN BUT I HAVE SEEN TOO MUCH CRUELTY BEING COMMITTED IN THE NAME OF CHILDREN'S RIGHTS AND CHILD PROTECTION NOT TO QUESTION PEOPLE WHO CLAIM TO BE SAVING KIDS PUBLIC OFFICIALS AND PUBLICLY FUNDED CHILDADVOCACY GROUPS ARE SUSPECT WHEN THEY CRY CHILD WELFARE WHETHER IT'S HILLARY CLINTON OR THE LOCAL SOCIALSERVICES CASEWORKER I WAS A SMALL CHILD IN THE EARLY 1970S MY PARENTS WHO ARE MENNONITES CHOSE TO EDUCATE ME AND MY BROTHERS AND SISTERS AT HOME ONE DAY AN UNANNOUNCED VISITOR DROPPED IN AS WE STUDIED OUR LESSONS A SCHOOL OFFICIAL CLAIMING RESPONSIBILITY FOR OUR WELFARE ASSERTING WE MUST SEE TO IT THAT THESE CHILDREN ATTEND SCHOOL LEGALLY MY PARENTS LATER WERE CHARGED WITH CHILD NEGLECT AT A TIME WHEN CHILDREN WERE BEING TAKEN FROM THEIR HOMES BECAUSE OF HOME SCHOOLING AWAITING THE COURT DECISION THAT WOULD DETERMINE OUR FATE WE CHILDREN BUILT A SECRET HIDEOUT TO WHICH WE PLANNED TO FLEE IF ANYONE TRIED TAKING US FROM OUR PARENTS I REMEMBER VIVIDLY THE WEIGHT OF THAT THREAT AND THE SENSE THAT I COULD FACE ANYTHING EXCEPT BEING TAKEN AWAY I COULD NOT KNOW THAT OUR CASE WOULD BE HELPED BY OUR NEIGHBORS WHO RALLIED AROUND OUR FAMILY EXERTING PRESSURE THAT INFLUENCED THE COURT MORE PROPITIOUSLY THE FAMILY COURT JUDGE PRESIDING DELAYED HIS DECISION PENDING THE OUTCOME OF WISCONSIN V YODER THEN BEFORE THE SUPREME COURT THE MAY 1972 DECISION CAME DOWN IN FAVOR OF THESE AMISH PARENTS WHO WERE DEFYING THE STATE SOMEONE ELSE WAS ALSO WATCHING WISCONSIN V YODER SOMEONE WHO SWIFTLY CRITICIZED THE SUPREME COURT'S DECISION THAT PERSON WAS HILLARY CLINTON WHOSE FOCUS WAS ON THE ONE JUSTICE WHO PROTESTED THE FACT THAT ONE CHILD IN YODER HAD NOT BEEN ASKED HIS PERSONAL WISHES REGARDING HIS EDUCATION THERE IS NO QUESTION THAT A CHILD SHOULD BE CONSULTED IN A LEGAL CASE REGARDING HIS OWN WELFARE THE QUESTION WITH HILLARY CLINTON HOWEVER WAS HER MOTIVATION WHY NOT PROTEST THE FACT THAT THE STATE OF WISCONSIN INITIATED COURT PROCEEDINGS WITHOUT THE CONSENT OF ANY OF THE YOUNGSTERS INVOLVED OR WHY NOT TALK ABOUT THE PREVAILING COMPULSORY EDUCATION LAWS EDUCATIONAL AND LABOR REGULATIONS EXERT GREATER FORCE THAN PARENTS ALONE COULD EMPLOY THE ISSUE IS WHO GETS TO TELL CHILDREN WHAT TO DO PARENTS OR THE STATE THE SHORTFALL IN THE MODERN SAVIOR'S VISION OF CHILDREN'S RIGHTS IS THE REFUSAL TO RECOGNIZE THE CHILD'S NEED TO MAKE AND KEEP ATTACHMENTS EVEN WHEN THIS NATURAL INSTINCT IS ACKNOWLEDGED IT IS OFTEN PORTRAYED AS DANGEROUS AS IN THIS ASSERTION IN A PUBLICATION OF THE NATIONAL FEDERATION FOR CHILD ABUSE AND NEGLECT THE POTENTIAL FOR EMOTIONAL MALTREATMENT IS DIRECTLY CORRELATED TO THE DEGREE THE CHILD IS DEPENDENT UPON THE ADULT THE GREATER THE DEPENDENCE THE GREATER THE POTENTIAL FOR ABUSE I AND MY HOMESCHOOLED SIBLINGS WERE VICTIMS OF THIS THINKING THE THREAT TO SEPARATE US FROM OUR PARENTS AND FORCIBLY THRUST US INTO A FOREIGN ENVIRONMENT VIOLATED OUR BASIC LIBERTIES A CHILD'S LIBERTIES ARE FRAGILE USING LEGAL FORCE ON CHILDREN IS AS SENSITIVE AND DANGEROUS A TERRITORY AS ANY A GOVERNMENT CAN TREAD TO BE UNDERTAKEN ONLY IN THE MOST EXTREME CIRCUMSTANCES AND UNDER THE HIGHEST LEGAL STANDARDS SADLY THIS IS NOT SO IN AMERICA PARTICULARLY IN THE AMERICA ENVISIONED BY OUR PRESENT ADMINISTRATION ALREADY WE HAVE COMPULSORY EDUCATION APTLY DESCRIBED BY AUTHOR AND AWARDWINNING TEACHER JOHN TAYLOR GATTO AS A 12YEAR JAIL SENTENCE FOR KIDS BILL CLINTON IN A 1990 ARTICLE IN THE NEW PERSPECTIVE QUARTERLY FAVORED EXPANDING COERCED EDUCATION BY REVOKING A DRIVER'S LICENSE FOR TEENAGERS WHO QUIT SCHOOL EARLY THE CLINTONS ASIDE INDIVIDUAL RIGHTS FOR CHILDREN ARE OFTEN POORLY PROTECTED IN OUR LEGAL SYSTEM I'M NOT TALKING ABOUT PROTECTING CHILDREN FROM PARENTS OR GUARDIANS BUT ABOUT PROTECTING THEM FROM MANIPULATION BY LAWYERS SOCIALSERVICE AGENCIES AND CHILDABUSE THERAPISTS I'M TALKING ABOUT DAVID AND JENNIFER BECK TWO GRADESCHOOL CHILDREN INTERROGATED AT SCHOOL IN 1988 AND FORCED TO DISROBE BEFORE STRANGERS WHEN A SOCIAL WORKER MISTAKENLY SUSPECTED THAT THEY HAD BEEN ABUSED THE BECK FAMILY SUCCESSFULLY SUED WESTCHESTER COUNTY NY OFFICIALS FOR UNREASONABLE SEARCH AND SEIZURE I'M TALKING ALSO ABOUT TWOYEAROLD REECIE WEST HE LOST HIS LIFE IN 1989 WHEN THE SYSTEM REMOVED REECIE FROM HIS FOSTER HOME WITH A COUPLE WHO WANTED TO ADOPT HIM AND THRUST HIM LIKE SO MUCH MERCHANDISE INTO ANOTHER FOSTER HOME WITH A COUPLE WHO BEAT HIM TO DEATH THE BUREAUCRATS HAD DEEMED THE ORIGINAL FOSTER FAMILY UNFIT TO ADOPT HIM BECAUSE THEY WERE WHITE AND REECIE WAS BLACK THESE UNFORTUNATE CHILDREN MADE THE NEWS BUT WHAT OF THE OTHERS WHO DO NOT THE JUST KIDS WHO ARE DOOMED TO LIVE RULED BY SECRET FAMILY COURT PROCEEDINGS WHERE THEIR OWN OPINIONS AND WISHES DON'T COUNT WHEN THE CLINTONS AND OTHERS PRATE ABOUT PROTECTING CHILDREN'S RIGHTS I ASK IS THIS REALLY ABOUT CHILDREN'S RIGHTS OR IS IT A QUESTION OF HOW MUCH RIGHT THE STATE HAS TO RULE OVER CHILDREN'S LIVES MS LAPP LIVES AND WORKS ON A FARM IN CASSADAGA NY WITH HER PARENTS AND SIBLINGS 9307290103 930729 TECHNOLOGY MICROSOFT'S NET CLIMBED BY 26 IN ITS 4TH PERIOD STRONG GROWTH ATTRIBUTED TO CONTINUED SUCCESS OF WINDOWS SYSTEMS BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP FURTHER UNDERLINING ITS HEGEMONY OF THE GLOBAL SOFTWARE MARKET POSTED ITS FIRST BILLIONDOLLAR QUARTER IN SALES WITH NET INCOME CLIMBING BY 26 THE REDMOND WASH SOFTWARE COMPANY SAID FISCAL FOURTHQUARTER NET ROSE TO 265 MILLION OR 87 CENTS A SHARE FROM 210 MILLION OR 71 CENTS A SHARE A YEAR EARLIER REVENUE SWELLED 27 TO 104 BILLION FROM 815 MILLION MICROSOFT ALONG WITH INTEL CORP IS REAPING MOST OF THE PROFIT FROM THE PERSONALCOMPUTER BOOM MICROSOFT HAS A NEAR MONOPOLY IN PC OPERATING SYSTEMS AND A DOMINANT POSITION IN APPLICATION SOFTWARE WHILE INTEL HAS A NEARMONOPOLY IN PC MICROPROCESSORS MICROSOFT'S NET PROFIT MARGIN IS 25 INTEL'S 27 SUCH MARGINS MAKE THEM ARGUABLY THE MOST PROFITABLE COMPANIES OF THEIR SIZE IN THE WORLD ALTHOUGH THE GAIN WAS A SLOWDOWN FROM THE TWO PREVIOUS QUARTERS WHEN NET BOUNDED UP BY MORE THAN A THIRD MICROSOFT'S RESULTS WERE ON TARGET WITH EXPECTATIONS ANALYSTS HAD A MEAN FORECAST OF 86 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC JUST AS ADVERTISED SAID BRUCE LUPATKIN AN ANALYST AT HAMBRECHT & QUIST HE SAID THE REAL QUESTION WAS WHAT THE COMPANY WOULD SAY AT ITS ANALYST MEETING TODAY MR LUPATKIN SAID HE EXPECTS TO HEAR THE USUAL WARNING THAT THE COMPANY'S FURIOUS GROWTH RATES CAN'T BE EXPECTED TO CONTINUE APACE BUT ADDED THIS TIME WE OUGHT TO PAY ATTENTION PRICE PRESSURE ON SOFTWARE AND A TREND TOWARD SELLING SUITES OF SOFTWARE AND APPLICATIONS HAVE CUT PROFIT MARGINS AND INCREASINGLY MICROSOFT'S GROWTH HAS BEEN IN UPGRADES OF ITS PRODUCTS WHICH ALSO SQUEEZES PROFIT BILL GATES CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE CONTINUING SUCCESS OF THE COMPANY'S WINDOWS OPERATING SYSTEM POWERED THE LATEST QUARTER'S GAINS THE COMPANY SELLS MORE THAN A MILLION COPIES OF WINDOWS A MONTH SENDING FORTH A WORLDWIDE FLOOD OF MORE THAN 30 MILLION COPIES THUS FAR THAT KIND OF SUCCESS MAKES MICROSOFT A COLOSSUS BESTRIDING THE WORLD OF SOFTWARE NEVERTHELESS THE COMPANY GAVE A HINT THAT THE CHANGING BUSINESS MIX AND INDUSTRY COMPETITION COULD DAMP ITS PAST PHENOMENAL RATES OF GROWTH WHILE THE ONGOING SUCCESS OF WINDOWS WORD AND MANY OTHER PRODUCTS MAKE US CONFIDENT THAT OUR CURRENT PRODUCT STRATEGIES ARE HEADED IN THE RIGHT DIRECTION MR GATES SAID IN A STATEMENT WE'RE ALSO MAKING MANY OTHER LONGTERM INVESTMENTS IN KEY TECHNOLOGIES FOR THE FUTURE INCLUDING SOFTWARE FOR OFFICE MACHINES AND PERSONAL HOME DEVICES FOR THE YEAR NET SURGED 35 TO 953 MILLION OR 315 A SHARE FROM 708 MILLION OR 241 A SHARE A YEAR EARLIER REVENUE LEAPED 36 TO 375 BILLION FROM 276 BILLION 9307290102 930729 CASE COSTS PRUDENTIAL UNIT 29 MILLION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC PAID AN INVESTOR 29 MILLION TO SETTLE A CASE INVOLVING A FORMER BROKER WHO NOW IS BEING INVESTIGATED BY FEDERAL PROSECUTORS PEOPLE CLOSE TO THE CASE SAY THE SETTLEMENT IS AMONG THE LARGEST AMOUNTS PAID BY PRUDENTIAL SECURITIES TO AN INDIVIDUAL INVESTOR IN AN ARBITRATION CASE INVOLVING SOURED PARTNERSHIPS THE HEFTY PAYMENT COMES AS THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT SCRAMBLES TO GET PAST ITS PARTNERSHIP PROBLEMS PRUDENTIAL IS NEARING A GLOBAL SETTLEMENT WITH FEDERAL AND STATE REGULATORS INVESTIGATING WHETHER THE FIRM IMPROPERLY SOLD LIMITED PARTNERSHIPS DURING THE 1980S THE CASE PROVIDES A RARE PEEK INTO THE ALLEGATIONS ABOUT THE ACTIVITIES OF JOHN FREDERIC STORASKA WHO ONCE RANKED AS PRUDENTIAL'S NO 2 BROKER BY PRODUCING ALMOST 5 MILLION IN ANNUAL COMMISSIONS MR STORASKA PIONEERED PRUDENTIAL'S CORPORATE EXECUTIVE SERVICES DIVISION WHICH CATERS TO WELLHEELED INVESTORS WHO OFTEN HAD RUN SMALL BUSINESSES THE DIVISION PROMISES TO GO TO EXTRAORDINARY LENGTHS TO INSURE CLIENTS' COMFORT AND PEACE OF MIND NOW THE 51YEAROLD MR STORASKA WHO NO LONGER WORKS AT PRUDENTIAL IS A FOCUS OF A CRIMINAL INVESTIGATION BY THE US ATTORNEY'S OFFICE IN MANHATTAN PEOPLE FAMILIAR WITH THE CASE SAY THAT INVESTIGATION OPENED LAST MONTH AND SINCE BROADENED TO INCLUDE ALL OF PRUDENTIAL'S PARTNERSHIP PRACTICES IS LOOKING AT WHETHER MR STORASKA AND OTHERS MADE UNAUTHORIZED TRADES FOR CLIENTS AND RECEIVED ILLEGAL PAYMENTS IN PEDDLING PARTNERSHIPS THE PEOPLE SAY KENNETH VIANALE AN ASSISTANT US ATTORNEY DECLINED TO COMMENT ON THE MATTER THE SETTLEMENT ENDS AN ARBITRATION CASE THAT WAS HOTLY CONTESTED BY PRUDENTIAL AND THE OTHER RESPONDENT MR STORASKA AT ONE POINT IN APRIL PRUDENTIAL TOOK THE UNUSUAL STEP OF SUING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE BROKERAGE INDUSTRY SELFREGULATOR AFTER PRUDENTIAL WAS ORDERED BY ARBITRATORS TO TURN OVER SENSITIVE DATA AFTER PRUDENTIAL FAILED TO RELEASE CERTAIN DOCUMENTS THE NASD THEN ORDERED PRUDENTIAL TO PAY AS MUCH AS 4000 FOR EACH DAY IT DECLINED TO PRODUCE THE DATA AFTER JUNE 30 RECENTLY PRUDENTIAL DROPPED THE NASD SUIT AND THE PENALTIES WERE INCLUDED IN THE 29 MILLION SETTLEMENT AMOUNT PRUDENTIAL DECLINED TO COMMENT ON THE CASE DENNIS BLOCK MR STORASKA'S LAWYER IN NEW YORK SAID HIS CLIENT HAD NOTHING TO DO WITH THE SETTLEMENT OR THE NEGOTIATIONS WHICH HE SAID WERE HANDLED BY PRUDENTIAL'S LAWYERS MR STORASKA DIDN'T PARTICIPATE IN THE SETTLEMENT HE SAID WE'RE FLABBERGASTED BY THE SIZE OF THE SETTLEMENT IN A CASE THAT CLEARLY DIDN'T WARRANT THAT AMOUNT MR BLOCK ADDED J BOYD PAGE OF PAGE & BACEK AN ATLANTA LAW FIRM REPRESENTING THE CLAIMANT WOULD SAY ONLY THAT HIS CLIENT WAS HAPPY WITH THE RESULT THE CASE WAS FILED IN JANUARY 1992 BY J DONALD SMITH WHO INVESTED ABOUT 6 MILLION WITH MR STORASKA IN 1987 AFTER SELLING A NORTH CAROLINA FURNITURE COMPANY HE FOUNDED WITH HIS WIFE WHO HAS SINCE DIED IN THE COMPLAINT FILED WITH ARBITRATORS MR SMITH 56 YEARS OLD ASSERTED THAT MR STORASKA TOLD THE COUPLE HE WAS NO MERE STOCKBROKER INSTEAD HE HAD BEEN HANDPICKED' BY GEORGE BALL PRUDENTIALBACHE'S FORMER CHIEF EXECUTIVE OFFICER TO HEAD THE FIRM'S CORPORATE EXECUTIVE SERVICES DIVISION MR STORASKA TOLD THE SMITHS HE DEALT ONLY WITH WEALTHY PEOPLE PARTICULARLY THOSE WHO HAD SOLD THEIR BUSINESSES ACCORDING TO THE ARBITRATION PAPERS MR STORASKA SAID HE HAD HIS OWN EXPERT STAFF OF SEVERAL EXECUTIVES WITHIN THE CORPORATE SERVICES DIVISION TO OVERSEE CLIENT ACCOUNTS THE ARBITRATION FILINGS SAY AND THAT HIS GROUP HAD ITS OWN COMPUTER PROGRAM THAT WOULD PROVIDE THEIR CUSTOMERS WITH MOREDETAILED AND EASIERTOREAD STATEMENTS DESPITE THE SMITHS' DESIRE FOR ONLY LOWRISK CONSERVATIVE INVESTMENTS THE DOCUMENTS FILED WITH ARBITRATORS SAY MR STORASKA INVESTED MORE THAN HALF THE BROKERAGE ACCOUNT IN RISKY LIMITED PARTNERSHIPS WITHOUT FIRST DISCUSSING THE PURCHASES WITH THE SMITHS THE INVESTMENTS INCLUDED PRUDENTIALBACHE ENERGY INCOME PARTNERSHIPS PRUDENTIALBACHE ENERGY GROWTH FUNDS SUMMIT INSURED EQUITY LIMITED PARTNERSHIP AND PRUTECH RESEARCH & DEVELOPMENT III PARTNERSHIP MOST OF THE PARTNERSHIPS WERE ILLIQUID THAT IS THEY DIDN'T HAVE AN ACTIVE RESALE MARKET MR STORASKA ALSO INVESTED ABOUT ONETHIRD OF THE ACCOUNT IN PRUDENTIALSPONSORED MUTUAL FUNDS FOR HIS PART MR BLOCK ASSERTS THAT MR STORASKA HIS CLIENT NEVER PUT MORE THAN 205 OF MR SMITH'S ACCOUNT IN LIMITED PARTNERSHIPS AND HE CONTENDS THAT MR SMITH AGREED TO THAT AMOUNT THE SMITHS ULTIMATELY HAD LOSSES OF ABOUT 12 MILLION IN THEIR ACCOUNT ACCORDING TO THE PAPERS FILED WITH ARBITRATORS MR STORASKA THEN ALLEGEDLY MISLED THE SMITHS ON THE DWINDLING VALUE OF THE INVESTMENTS MR STORASKA DID THIS THE PAPERS CONTEND BY SUPPLYING THE SMITHS WITH MONTHLY STATEMENTS THAT NOT ONLY LISTED THE VALUE OF THE INVESTMENTS AT THEIR ORIGINAL PURCHASE PRICE BUT FURTHER MISLED THE SMITHS BY LISTING THE UNREALIZED LOSS ON THE PARTNERSHIP AS ZERO AS A RESULT OF MR STORASKA'S AND PRUDENTIAL'S MISREPRESENTATIONS THE SMITHS WERE UNAWARE OF THE RAPID DECLINE IN THE VALUE OF THEIR INVESTMENTS THE PAPERS CONTEND 9307290101 930729 WHO'S NEWS SIMMONS COMMUNICATIONS SIMMONS COMMUNICATIONS STAMFORD CONN BRUCE ARMSTRONG 46 YEARS OLD WAS NAMED PRESIDENT OF THIS CABLETELEVISION SYSTEM OPERATOR A NEW POSITION HE HAD BEEN EXECUTIVE VICE PRESIDENT OPERATIONS 9307290100 930729 MARKETSCAN FOOD FIRMS SEEK A PLAN FOR ALL SEASONS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL CAMPBELL SOUP CO IS OUT TO CREATE A NATION OF YEARROUND SOUP SLURPERS FOR EVERY PRODUCT THERE IS A SEASON AND SOUP SUFFERS FROM BEING ONE OF THE MOST SEASONAL OF ALL GROCERY ITEMS ALMOST HALF OF ALL SALES OF CANNED SOUP OCCUR IN JUST THE COLDWEATHER MONTHS ACCORDING TO SALES DATA GATHERED FROM SUPERMARKETS BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE IN JULY SOUP SALES PLUNGE TO LESS THAN HALF THE VOLUME OF THEIR PEAK IN FEBRUARY BUT NOW CAMPBELL IS TRYING THE TRICKY ART OF CONTRASEASONAL MARKETING AS THE EFFORT IS KNOWN IN THE DISTINCTIVE PATOIS OF BRAND MANAGERS SOME BIG MARKETERS HOPE TO FUNDAMENTALLY RESHAPE THE SPAN OF TIME IN WHICH CONSUMERS BUY AND USE THEIR PRODUCTS IN TODAY'S FIERCELY COMPETITIVE MARKETPLACE COMPANIES ARE BEGINNING TO REALIZE THAT THEY CAN'T AFFORD TO VIRTUALLY IGNORE THEIR CUSTOMERS FOR HALF THE YEAR IT ISN'T DONE FREQUENTLY ENOUGH AND IT'S UNDERVALUED AS A MARKETING TOOL SAYS PHIL JOHNSON PRESIDENT OF LEO J SHAPIRO & ASSOCIATES A CHICAGO CONSULTING FIRM BUT RETOOLING CONSUMERS' LONGHELD EATING AND SHOPPING CUSTOMS IS COSTLY AND DIFFICULT CONSUMERS ARE CREATURES OF HABIT AND GROCERS ARE SCORNFUL OF THE NOTION OF SQUANDERING SHELF SPACE TO PROMOTE CAMPBELL'S TOMATO SOUP IN THE DOG DAYS OF SUMMER TO COOK UP A RECIPE FOR ALTERING THE NATION'S SOUP HABIT CAMPBELL RECENTLY APPOINTED A NEW AD AGENCY OMNICOM GROUP'S BBDO TO DEVISE AN AD CAMPAIGN FOR ITS REDANDWHITE LABEL THE SOUP MAKER IS EXPECTED TO SIGNIFICANTLY BOOST AD SPENDING ON THE BRAND WHEN THE NEW EFFORT BEGINS IN THE FALL IMAGES OF KIDS WARMING THEIR HANDS ON STEAMING MUGS OF CAMPBELL'S ARE LIKELY TO DISAPPEAR IN FAVOR OF A LESS WEATHERRELATED APPROACH CAMPBELL WON'T DISCUSS ITS PLANS TO INCREASE SOUP CONSUMPTION NOTING THAT INCREASING OFFSEASON SLURPING IS JUST ONE ASPECT OF THE STRATEGY A FEW DETERMINED MARKETERS BY REDEPLOYING THEIR AD BUDGETS TO SPEND WHEN RIVALS AREN'T ALREADY ARE HAVING SOME SUCCESS IN CREATING DEMAND AT UNEXPECTED TIMES OF THE YEAR FOR BEER MAKERS JANUARY HAD ALWAYS BEEN ONE OF THE WORST TIMES OF THE YEAR FOR PEDDLING ICY BREWS BUT IN 1989 ANHEUSERBUSCH COS BEGAN AN EXPENSIVE TIEIN WITH THE SUPER BOWL STAGING SILLY FOOTBALL GAMES BETWEEN ANIMATED LONGNECK BEER BOTTLES THE ADS HELPED CREATE A JUMP IN BEER SALES WITH THE BIGGEST SHARE OF NEW BUSINESS GOING TO BUD WE HAVE CREATED A BEERSALES SPIKE IN A MONTH WHERE THERE WASN'T ONE SAYS MICHAEL OWENS MARKETING DIRECTOR OF BUDWEISER BEER SALES HAVE JUMPED 16 IN THE MONTH OF JANUARY SINCE THE ADVENT OF BUD BOWL AS A COMPANY WE MOST DEFINITELY ARE PAYING A LOT OF ATTENTION TO HOW WE CAN EXTEND SEASONALITY HE ADDS THE BEER BUSINESS STILL HAS A LONG WAY TO GO AFTER PEAKING AT 36 MILLION CASES IN JULY BEER SALES PLUNGE BY ONETHIRD TO JUST 24 MILLION CASES IN FEBRUARY ACCORDING TO INFORMATION RESOURCES DATA NOW ANHEUSERBUSCH IS LAUNCHING A SECOND MAJOR ATTEMPT TO SPUR SALES AT ANOTHER SLACK TIME THE PREHOLIDAY LULL IN OCTOBER THE BREWER IS STAGING THE FIRST BUD WORLD SERIES CLASSIC TIED TO THE MAJOR LEAGUE CHAMPIONSHIP BUT THE ANIMATED BOTTLES WILL BE SIDELINED IN FAVOR OF REPLAYS OF CLASSIC MOMENTS FEATURING HUMAN JOCKS WE ARE TRYING TO EXTEND THE SUMMER INTO OCTOBER SAYS MR OWENS PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT REVERSED A SALES DECLINE IN CRYSTAL LIGHT POWDEREDDRINK MIXES BY EXTENDING MARKETING EFFORTS BEYOND WARMWEATHER MONTHS WHEN ROBERT HOPTON SENIOR PRODUCT MANAGER FOR CRYSTAL LIGHT WAS BROUGHT IN TO FIX THE TROUBLED BRAND IN 1991 HE WAS DISTURBED THAT CRYSTAL LIGHT HAD VIRTUALLY NO ADVERTISING OR PROMOTIONS SLATED FOR HALF THE YEAR WE WERE JUST DARK IT WAS REALLY HURTING THE BRAND HE SAYS IF YOU DON'T SUPPORT THE BUSINESS ON A YEARROUND BASIS IT'S BASICALLY A RELAUNCH OF THE BRAND EACH AND EVERY APRIL TO KEEP CONSUMERS FROM IGNORING THE LINE IN WINTER GENERAL FOODS BEGAN PROMOTING CRYSTAL LIGHT AS A DIET DRINK IN JANUARY WHEN INTEREST IN WEIGHTLOSS PRODUCTS IS HIGH BY EXTENDING ADVERTISING TO NEARLY THE FULL YEAR CRYSTAL LIGHT HAS PUSHED CONSUMPTION UP 6 THIS YEAR STILL 65 OF THE DRINK IS CONSUMED IN THE FIVE MONTHS FROM APRIL THROUGH AUGUST ANOTHER GENERAL FOODS BRAND KOOLAID IS GETTING ALMOST HALF ITS NEW GROWTH BY MARKETING THE POWDERED DRINK IN COOLER MONTHS KRAFT HAD DEVOTED ALL ITS KOOLAID ADS AND PROMOTIONS TO THE SUMMER BUT ITS ADS WERE GETTING LOST IN THE CLUTTER OF SPOTS FOR OTHER HOTWEATHER BEVERAGES HALLOWEEN PROMOTION IN 1992 KRAFT SPENT 17 MILLION ON KOOLAID ADS ACCORDING TO LEADING NATIONAL ADVERTISERS A COMPANY THAT TRACKS AD SPENDING BUT A PORTION OF THAT SPENDING WAS SHIFTED TO COOLER MONTHS LAST YEAR FOR THE FIRST TIME THE COMPANY RAN A HALLOWEEN PROMOTION GIVING FREQUENT KOOLAID BUYERS A DOLLAR OFF ON CANDY PURCHASES SUCH ADS THE COMPANY SAYS ARE SLOWLY CHANGING THE PERCEPTION THAT KOOLAID IS JUST A SUMMER DRINK BUT KOOLAID IS RUNNING INTO SOME STIFF OPPOSITION FROM GROCERS WHO WANT TO PROMOTE HOT CHOCOLATE NOT COLD DRINKS IN THE WINTER WHEN KRAFT OFFERED A KOOLAID DISPLAY UNIT FOR SUPERMARKET AISLES IN THE WINTER MANY GROCERS FLATLY REJECTED THE PROMOTION THERE WAS A LOT OF TRADE RESISTANCE PEOPLE SAID NO WAY KOOLAID IS SUMMER' SAYS MATTHEW BOSTWICK SENIOR PRODUCT MANAGER FOR KOOLAID MACY'S WOULDN'T TAKE OUT HALF ITS BATHING SUITS IN JULY TO SELL FUR COATS GRUMBLES MICHAEL MUSCANELL A MERCHANDISING MANAGER FOR GRAND UNION HOLDINGS CORP A SUPERMARKET CHAIN BASED IN WAYNE NJ HE SAYS THE CHAIN REJECTS ATTEMPTS TO DISPLAY PRODUCTS IN THE OFFSEASON YOU FISH WHERE THE FISH ARE HE SAYS AS FOR CAMPBELL SOUP'S YEARROUND STRATEGY MR MUSCANELL SAYS THE COMPANY SHOULD BE HAPPY THAT IT HAS REASONABLY GOOD SUMMER SALES AT ALL A DOZEN YEARS AGO SUPERMARKETS REMOVED MOST SOUP FROM STORE SHELVES TO MAKE ROOM FOR SUMMER BESTSELLERS SUCH AS PAPER PLATES CHARCOAL AND MARSHMALLOWS AT LEAST THAT DOESN'T HAPPEN ANY MORE HE SAYS SOME MARKETERS OF SEASONAL PRODUCTS FROWN ON YEARROUND SALES STRATEGIES IT CAN BE A VERY EXPENSIVE AND UNREWARDING TASK SAYS JAY ABRAHAM A MARKETING EXECUTIVE AT HJ HEINZ CO HE ONCE TRIED TO LAUNCH A LINE OF PRIVATELABEL SOUPS IN THE SUMMER AND WAS ALL BUT IGNORED BY GROCERS AN ATTEMPT TO SWEETEN SALES OF HEINZ PICKLES IN COLDER MONTHS WAS EQUALLY UNSUCCESSFUL MR ABRAHAM NOW A VICE PRESIDENT MARKETING AT HEINZ'S WEIGHT WATCHERS FOOD CO UNIT FOCUSES THAT BUSINESS'S EFFORTS ON THE THREE TIMES OF YEAR WHEN PEOPLE WANT TO LOSE WEIGHT AFTER THE HOLIDAYS BEFORE THE SUMMER BATHINGSUIT SEASON AND IN THE FALL WEIGHT WATCHERS GETS 65 OF ITS SALES IN JUST 40 OF THE CALENDER YEAR HE EXPLAINS IT IS A LOT EASIER TO FILL A NEED THAT ALREADY EXISTS THAN TO CREATE A NEW ONE 9307290099 930729 WHO'S NEWS FLAGSTAR COS FLAGSTAR COS SPARTANBURG SC C RONALD PETTY HAS BEEN NAMED SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE DENNY'S RESTAURANT CHAIN MR PETTY 48 YEARS OLD SUCCEEDS E BERNARD SCOTT WHO RETIRED DEC 31 H STEPHEN MCMANUS FLAGSTAR'S EXECUTIVE VICE PRESIDENT OF RESTAURANT OPERATIONS HAD TAKEN ON THOSE DUTIES IN THE INTERIM MR PETTY FORMERLY WAS PRESIDENT AND CHIEF EXECUTIVE OF MIAMI SUBS CORP IN FORT LAUDERDALE FLA 9307290098 930729 WHO'S NEWS PHILADELPHIA STOCK EXCHANGE PHILADELPHIA STOCK EXCHANGE PHILADELPHIA ANTHONY G WARD 55 YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE EXCHANGE BOTH NEW POSITIONS MR WARD WILL BE RESPONSIBLE FOR DAYTODAY OPERATION OF THE EQUITY EQUITYOPTIONS AND CURRENCYOPTIONS TRADING FLOORS AS WELL AS MARKET SURVEILLANCE FINANCE ADMINISTRATION AND TECHNOLOGY MR WARD MOST RECENTLY DIRECTOR OF INFORMATION TECHNOLOGY AT SWISS BANK CORP CHICAGO WILL JOIN THE EXCHANGE AUG 9 HE IS ALSO FORMER SENIOR VICE PRESIDENT AND PARTNER IN TELLEFSEN CONSULTING GROUP A CHICAGO INFORMATIONTECHNOLOGY CONSULTING COMPANY AND FORMER VICE PRESIDENT OF THE CHICAGO MERCANTILE EXCHANGE IN CHARGE OF TRADINGFLOOR OPERATIONS 9307290097 930729 ENTERPRISE SMALL BUSINESSES GAZE HUNGRILY AT SWEETER TAX PROVISION HIGHER EXPENSING CEILING RETROACTIVE TOO PROMISES AN ARRAY OF BREAKS BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS CONGRESS STRUGGLES TO FILL IN THE REMAINING BLANKS IN PRESIDENT CLINTON'S BUDGET BILL SMALLBUSINESS OWNERS CAN SMILE WITH THE KNOWLEDGE THAT THEY HAVE APPARENTLY BAGGED ONE LUCRATIVE TAX GOODIE THIS IS A SWEETENING OF THE PROVISION THAT LETS COMPANIES DEDUCT EQUIPMENT EXPENDITURES FOR TAX PURPOSES IN THE YEAR OF PURCHASE RATHER THAN DEPRECIATE THE ASSETS OVER SEVERAL YEARS EXPERTS SAY COMPANIES SHOULD START PLANNING NOW ON HOW TO GET THE MOST OUT OF THE BREAK LEADERS OF THE HOUSESENATE CONFERENCE HAVE TENTATIVELY AGREED TO A SIZABLE INCREASE IN THE CURRENT 10000 ANNUAL WRITEOFF MAXIMUM THE EXACT FIGURE FOR THE NEW DEDUCTION IS A CRITICAL BARGAINING POINT IN THE HEATED FINAL DAYS OF NEGOTIATING IT IS EXPECTED TO BE CLOSER TO THE 20500 IN THE SENATE BILL THAN THE MORE GENEROUS AMOUNT APPROVED BY THE HOUSE THE INCREASE WILL MAKE IT ALL THE MORE WORTHWHILE FOR SMALLBUSINESS OWNERS TO GET THE MOST OUT OF THE PROVISION WHICH ALREADY CONTAINS MORE ADVANTAGEOUS WRINKLES THAN MANY REALIZE OF COURSE IF CONGRESS DEFEATS THE FINAL BUDGET BILL THERE'S NO GUARANTEE THAT A HIGHER EXPENSING CEILING WOULD RETURN IN THE SUCCESSOR BILL STILL SMALLBUSINESS OWNERS ARE BANKING ON AN INCREASE NOW AND THERE'S AN ADDED PLUS THE NEW HIGHER EXPENSING FIGURE WILL ALMOST SURELY BE RETROACTIVE TO JAN 1 1993 THIS MEANS THAT COMPANIES WILL HAVE THE BENEFIT OF A MORE GENEROUS CEILING TO WRITE OFF THE COST OF EVERYTHING FROM MACHINERY TO FILE CABINETS PURCHASED THIS YEAR GEORGE ABBOTT PRESIDENT OF SCOTT FOOT CARE OMAHA NEB A MANUFACTURER OF PRIVATELABEL FOOT CARE PRODUCTS IS WATCHING THE CONGRESSIONAL ACTION CLOSELY IF THEY COME THROUGH WITH IT THE HIGHER EXPENSING CEILING I'LL MOST LIKELY BUY A NEW BAGGING MACHINE HE SAYS OTHERWISE I'LL PUT IT OFF FOR A WHILE MR ABBOTT SAYS THE MERCHANDISEBAGGING EQUIPMENT HE WANTS CARRIES A PRICE TAG OF AROUND 80000 BUT MACHINERY DEALERS EAGER FOR HIS ORDER HAVE TOLD HIM THEY WOULD CONSIDER THE AMOUNT OF THE EXPENSING DEDUCTION AS A DOWN PAYMENT EVEN DEFERRING COLLECTION OF THAT SUM UNTIL THE END OF THE TAX YEAR I'VE HAD A COUPLE OF THEM TELL ME THAT MR ABBOTT SAYS FOR US LITTLE GUYS THAT'S AWFUL CONVENIENT THE ARRANGEMENT WOULD ALLOW A COMPANY TO BUY A MAJOR ASSET WITH NO IMMEDIATE OUTOFPOCKET CASH PAYMENT LATER THE COMPANY COULD PAY PART OF THE EQUIPMENT'S COST WITH SAVINGS FROM THE TAX DEDUCTION ADDS MR ABBOTT EVERYBODY'S WATCHING THIS THE EXPENSING FIGURE NEGOTIATIONS AND SEEING HOW THEY CAN USE IT TO THEIR ADVANTAGE EVEN AS IT STANDS NOW HOWEVER THE TAX CODE'S EXPENSING PROVISION FORMALLY KNOWN AS SECTION 179 OFFERS SMALL COMPANIES AN ARRAY OF BREAKS THAT BIG CORPORATIONS CAN'T ENJOY INDEED SMALL FIRMS ARE OFTEN ENTITLED TO MORE THAN THEY REALIZE FOR INSTANCE RICHARD HERRING GENERAL MANAGER OF GLOUCESTER CO A FRANKLIN MASS MANUFACTURER OF SEALING COMPOUNDS SAYS HIS FIRM IS SPENDING ABOUT 20000 TO UPGRADE ITS CONTROLLER THAT REGULATES COLORS AND OTHER INGREDIENTS IN BATCHES OF SEALANT I'M NOT SURE IF THE CONTROLLER QUALIFIES FOR THE EXPENSING DEDUCTION MR HERRING SAYS ALSO OWNERS OF SUBCHAPTER S CORPORATIONS AND SOLE PROPRIETORSHIPS THE VAST MAJORITY OF SMALL ENTERPRISES CAN USE A SPOUSE'S WAGES OR SALARY FROM A PREVIOUS JOB TO MAKE FULL USE OF THE SECTION 179 IN SUBCHAPTER S COMPANIES BUSINESS INCOME IS REPORTED ON OWNERS' OR SHAREHOLDERS' PERSONAL TAX RETURNS RATHER THAN ON SEPARATE CORPORATE RETURNS CONSIDER THE COMPUTER ENGINEER LAID OFF IN MIDYEAR WHO DECIDES TO START HIS OWN CONSULTING FIRM AS COMMONLY OCCURS IN SMALL FIRMS EXPENSES OUTWEIGH INCOME IN THE FIRST FEW MONTHS AND HIS COMPANY ENDS THE YEAR IN THE RED THE EXPENSING DEDUCTION WOULD SEEM TO BE USELESS BECAUSE THE COMPANY DIDN'T MAKE A PROFIT AND THUS DIDN'T PAY INCOME TAX BUT THE IRS SAYS THE CONSULTANT CAN BOOST HIS INCOME FOR SECTION 179 PURPOSES BY ADDING IN HIS CORPORATE SALARY FROM THE FIRST HALF OF THE YEAR THE SALARY OF THE CONSULTANT'S SPOUSE CAN ALSO BE USED TO HELP PUT THE FIRM IN THE BLACK SIMILARLY AN ENTREPRENEUR COULD COUNT THE PROFITS FROM A SUBCHAPTER S BAKERY IN ORDER TO DEDUCT THE COST OF EQUIPMENT SHE PURCHASED FOR A STARTUP HARDWARE STORE THAT LOST MONEY THAT'S THE BEAUTY OF IT ALMOST ALWAYS YOU HAVE NET INCOME SAYS TOM OCHSENSCHLAGER A PARTNER IN THE WASHINGTON OFFICE OF CHICAGOBASED ACCOUNTANTS GRANT THORNTON FOR DEDUCTION PURPOSES THE TWO LINES OF ENDEAVOR BEING LINKED NEEDN'T BE RELATED MR OCHSENSCHLAGER SAYS A LAIDOFF COMPUTER ENGINEER COULD EVEN USE HIS FORMER SALARY TO SHOW A PROFIT IN A FLEDGLING LIONTAMING BUSINESS HE COULD THEN DEDUCT THE COST OF A CHAIR WHIP AND OTHER ESSENTIAL LIONTAMING GEAR UNDER SECTION 179 IF A BUSINESS REPORTS A LOSS AFTER ALL THIS PERHAPS THE OWNER IS UNMARRIED OR DIDN'T HAVE SALARY THAT YEAR TO CONTRIBUTE THE EXPENSING DEDUCTIONS CAN BE CARRIED FORWARD TO BE USED THE FOLLOWING YEAR INSTALLMENT PURCHASES CAN ALSO BENEFIT FROM SECTION 179 TREATMENT A SMALL FIRM CAN PURCHASE EQUIPMENT AT THE END OF A YEAR CLAIM THE FULL DEDUCTION IN THAT YEAR AND MAKE PAYMENTS OVER TIME THE FIRM MIGHT PAY NOTHING AT ALL IN THE YEAR FOR WHICH IT TAKES THE DEDUCTION PROVIDING IT PUTS THE EQUIPMENT INTO SERVICE THAT YEAR THE RATIONALE BEHIND RAISING THE EXPENSING CEILING IT WILL BOOST INVESTMENT SPENDING BY SMALL COMPANIES AND THUS SPUR ECONOMIC GROWTH OUTWEIGHING LOST TAX REVENUE THE EXPENSING PROVISION IS A STOCKING STUFFER SAYS MR OCHSENSCHLAGER AT THE LAST MINUTE LAWMAKERS WILL MAKE A CALL TO THE SUBBASEMENT AND SOME GNOME WILL RUN THE COMPUTER TO SEE HOW MUCH THEY CAN GIVE 9307290096 930729 WHO'S NEWS ARMSTRONG WORLD INDUSTRIES INC ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA URSULA F FAIRBAIRN 50 YEARS OLD WAS ELECTED A DIRECTOR OF THIS HOME FURNISHING MAKER FILLING A VACANCY MS FAIRBAIRN IS SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT UNION PACIFIC CORP 9307290095 930729 LEISURE & ARTS BOOKSHELF INSIDE THE POVERTY INDUSTRY BY SOL STERN ALONE AMONG AMERICAN CITIES NEW YORK TAKES PRIDE IN RUNNING ITS VERY OWN NEARLY COMPREHENSIVE WELFARE STATE ONE OF FIVE RESIDENTS RECEIVES SOME FORM OF PUBLIC ASSISTANCE TEN YEARS AGO THE CITY AGREED TO PROVIDE IMMEDIATE SHELTER TO ANYONE WHO DECLARED THAT HE OR SHE WAS HOMELESS NOW THE CITY'S BILL FOR HOMELESS SHELTERS HAS REACHED 500 MILLION ANNUALLY THE CITY OWNS AND OPERATES 11 HOSPITALS AND A VAST HOUSING STOCK FOR THE POOR AND NEW YORK'S POLITICAL LEADERSHIP PROUDLY DECLARES THAT BUT FOR THE FEDERAL GOVERNMENT'S HEARTLESS STINGINESS DURING THE REAGAN AND BUSH YEARS EVEN MORE OF THE CITY'S MONEY WOULD HAVE POURED INTO ANTIPOVERTY PROGRAMS BUT HOW HAVE THE POOR THEMSELVES FARED IN LIBERAL NEW YORK ACCORDING TO THERESA FUNICIELLO THEY ARE IN WORSE SHAPE THAN EVER TYRANNY OF KINDNESS ATLANTIC MONTHLY PRESS 340 PAGES 23 IS AN ANGRY INDICTMENT OF OUR MODERN WELFARE SYSTEM BY A FORMER WELFARE RECIPIENT WHO HAS EMERGED AS A TALENTED AND PERCEPTIVE WRITER MS FUNICIELLO BRILLIANTLY EXPOSES THE GAP BETWEEN WHAT NEW YORK SPENDS AND WHAT ITS NEEDIEST CITIZENS ACTUALLY RECEIVE BY FOCUSING ON THE BOTTOM LINE AND FOLLOWING THE MONEY FOR EXAMPLE DURING THE PAST TWO DECADES THE CITY'S SOCIALSERVICES SPENDING INCREASED BY MORE THAN 400 YET DURING THE SAME PERIOD THE VALUE OF THE BASIC WELFARE GRANT DROPPED BY ALMOST 30 IN REAL DOLLARS THE CITY NOW SPENDS AN AVERAGE OF 18000 ANNUALLY TO SHELTER A SINGLE HOMELESS PERSON YET THE ONLY GOODS THE HOMELESS INDIVIDUAL GETS ARE THREE MEALS A DAY AND A COT IN A GRIM ARMORY SURROUNDED BY DRUG ADDICTS AND THE MENTALLY ILL THE APPROXIMATELY 36000 PER YEAR THAT IT COSTS TO SHELTER A HOMELESS FAMILY OF THREE OFTEN DELIVERS ONLY A SINGLE ROOM IN A DECREPIT RATINFESTED HOTEL SO WHERE DOES ALL THE MONEY GO ACCORDING TO MS FUNICIELLO AN UNCONSCIONABLE AMOUNT IS SIPHONED OFF BY THE POVERTY INDUSTRY FUNDS ALLOCATED BY ELECTED OFFICIALS TO HELP POOR PEOPLE MUST FIRST PAY THE SALARIES OF AN ARMY OF MIDDLECLASS PROFESSIONALS THE BUREAUCRATS SOCIAL WORKERS COUNSELORS AND TRAINERS WHO DELIVER THE SOCIAL SERVICES THAT THE EXPERTS ALSO PART OF THE INDUSTRY TELL US THE POOR REQUIRE MS FUNICIELLO IS PARTICULARLY CAUSTIC IN HER DEPICTION OF THE ROLE PLAYED BY THE GROWING NOTFORPROFIT SECTOR OF THE POVERTY INDUSTRY SHE LAMBASTS THE FOUNDATIONS AND VOLUNTARY SOCIALWELFARE AGENCIES AS LEECHES WHO PAY THEIR EXECUTIVES SIXFIGURE SALARIES AND GENERALLY LIVE OFF THEIR CUT OF THE MONEY THAT SHOULD BE GOING DIRECTLY TO THE POOR INSTEAD OF FIGHTING TO RAISE THE BASIC WELFARE GRANT AND ALLOWING POOR PEOPLE TO DETERMINE HOW THE MONEY SHOULD BE SPENT THESE GROUPS PUSH WASTEFUL PROJECTS SUCH AS SOUP KITCHENS AND FOOD PANTRIES THE HIGHLY PUBLICIZED FOODDISTRIBUTION PROGRAMS MAKE A LOT OF MIDDLECLASS PEOPLE FEEL GOOD BUT WHY CREATE A SEPARATE ECONOMY AND BUREAUCRACY TO BRING SURPLUS CHEESE AND OTHER THROWAWAY ITEMS TO THE POOR WHY NOT AS MS FUNICIELLO SENSIBLY PROPOSES PUT THE MONEY IN THE HANDS OF THE POOR AND LET THEM SHOP FOR BETTER FOOD SHE ALSO TAKES ON SOME OF THE LEADING ICONS OF THE HOMELESSADVOCACY COMMUNITY ROBERT HAYES THE FORMER HEAD OF THE COALITION FOR THE HOMELESS IS CRITICIZED FOR WAGING ENDLESS LEGAL SUITS OVER EVERY MINUTE DETAIL OF THE CONFIGURATION OF HOMELESS SHELTERS INSTEAD OF FIGHTING TO PUT MORE MONEY IN THE HANDS OF THE HOMELESS SO THEY CAN PURCHASE THEIR OWN HOUSING ANDREW CUOMO IS CENSURED FOR CONSTRUCTING A VAST SHELTER EMPIRE AT A VERY HIGH COST IN ORDER TO FURTHER HIS OWN CAREER THOUGH MS FUNICIELLO TYPICALLY UNDERMINES HER CASE WITH A PERSONAL ATTACK SHUT DOWN THE ENTIRE WELFARE INDUSTRY AND GIVE THE MONEY DIRECTLY TO THE POOR MS FUNICIELLO CONCLUDES THUS ECHOING THE INSIGHTS OF MANY CONSERVATIVES THAT THE ONLY THING THE GOVERNMENT CAN BE TRUSTED TO DO EFFICIENTLY IS TO WRITE CHECKS AND SHE ALSO SIDES WITH THOSE REPUBLICANS AND NEW DEMOCRATS WHO PREFER CASH VOUCHERS TO THE POOR RATHER THAN GOVERNMENTRUN PROGRAMS FOR SERVICES SUCH AS DAY CARE AND HOUSING NEVERTHELESS THIS IS FAR FROM A CONSERVATIVE CRITIQUE OF THE WELFARE STATE THE AUTHOR NEITHER QUESTIONS THE RIGHT TO AUTOMATIC WELFARE ASSISTANCE NOR ACKNOWLEDGES THAT THE RAPID EXPANSION OF THE WELFARE ROLLS UNDER PRESSURE BY ADVOCATES AND LIBERAL JUDGES ULTIMATELY HELPED PROVOKE A REDUCTION OF BENEFIT LEVELS MS FUNICIELLO DISMISSES THE VERY NOTION OF WELFARE DEPENDENCY AS WELL AS THE EXISTENCE OF AN URBAN UNDERCLASS SHE BELIEVES THAT THE EXPLODING RATE OF OUTOFWEDLOCK BIRTHS AMONG THE URBAN POOR IS SIMPLY A REFLECTION OF THE FACT THAT SOCIETY NO LONGER PRESSURES PREGNANT TEENAGERS INTO SHOTGUN MARRIAGES SHE IS CONVINCED THAT THERE ARE FEW WORTHWHILE JOBS IN THE PRIVATE ECONOMY THAT WOULD JUSTIFY ENCOURAGING WELFARE MOTHERS TO LEAVE THE ROLLS THIS OPINION IS AN UNFORTUNATE DENIAL OF THE EVIDENCE IGNORING THE REALITY OF UNDERCLASS PATHOLOGY WILL UNDERMINE ANY REASONED CASE FOR A GUARANTEED INCOME OR FAMILY ALLOWANCE AS A SOLUTION FOR OUR NATIONAL WELFARE PROBLEMS STILL MS FUNICIELLO'S DEVASTATING PORTRAIT OF THE ABSOLUTE IRRATIONALITY AND WASTE OF OUR EXISTING SOCIALWELFARE SYSTEM WILL CONVINCE MANY THAT ALMOST ANYTHING ELSE WOULD BE AN IMPROVEMENT MR STERN IS AN ADVISER ON SOCIALPOLICY ISSUES TO NEW YORK CITY COUNCIL PRESIDENT ANDREW STEIN 9307290094 930729 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN ANTISEMITISM IN JAPAN SURFACED IN AN UNUSUAL PLACE A NEWSPAPER AD CLAIMING A JEWISH CABAL IS DESTROYING THE ECONOMY THE NIHON KEIZAI SHIMBUN JAPAN'S LEADING BUSINESS NEWSPAPER KNOWN AS THE NIKKEI PUBLISHED THE AD FOR A SERIES OF BOOKS TITLED SHOOT JAPAN THE LAST STRONG ENEMY BY JACOB MORGAN THE PSEUDONYM OF A WRITER WHOM THE PUBLISHER DAIICHI KIKAKU SHUPPAN SAID WAS A JEWISHAMERICAN BUT DECLINED TO IDENTIFY FURTHER THE 47000 AD BLAMES JEWS FOR JAPAN'S STOCK MARKET CRASH THE STRONG YEN AND POLITICAL CONFUSION CRITICS OF THE AD SAY SUCH CONSPIRACY THEORIES TYPICALLY APPEAR IN TIMES OF ECONOMIC TURMOIL THE PUBLISHER SAYS THE SERIES HAS SOLD A TOTAL OF 50000 COPIES ANTISEMITIC BOOKS ARE COMMON IN JAPAN WHERE JUDAISM IS LITTLE UNDERSTOOD AND CONSPIRACY THEORIES AMOUNT TO A KIND OF POPULAR ENTERTAINMENT BUT ADS FOR ANTISEMITIC WRITINGS RARELY RUN IN JAPAN'S SERIOUS NEWSPAPERS THE PUBLISHER SAYS THE SHOOT JAPAN ADS HAVE RUN IN OTHER JAPANESE DAILIES AS WELL THE NIKKEI DECLINED RESPONSIBILITY FOR AD CONTENT BUT SAID IT WOULD RECONSIDER RUNNING ADS FOR ANTISEMITIC LITERATURE THE EUROPEAN COMMUNITY COMMISSION BOWING TO OPPOSITION FROM MEMBER COUNTRIES SHELVED PLANS TO EXPAND EC JURISDICTION OVER LARGE MERGERS BUT PROMISED TO FINETUNE ITS MERGER LAW THE PANEL DECIDED AGAINST TRYING TO LOWER MINIMUM SALES LEVELS THAT TRIGGER EC AUTHORITY OVER MERGERS AND SUGGESTED REEXAMINATION OF THE ISSUE IN 1996 THE PROMISED CHANGES IN THE LAW WHICH DON'T REQUIRE APPROVAL BY EC GOVERNMENTS ARE INTENDED TO HELP THIRD PARTIES COMMENT ON PROPOSED MERGERS AND TO EASE NOTIFICATION RULES FOR SMALL JOINT VENTURES THE COMMISSION HAS BLOCKED ONLY ONE MERGER SINCE SEPTEMBER 1990 BUT HAS IMPOSED CONDITIONS IN 15 DEALS FOUR JAPANESE PRINTING COMPANIES ADMITTED IN A TOKYO COURT HEARING THAT THEIR EMPLOYEES ILLEGALLY RIGGED BIDS FOR GOVERNMENT CONTRACTS SAYING THE PRACTICE WAS COMMON THE EMPLOYEES ARE ACCUSED OF FIXING PRICES ON BIDS FOR 19 SOCIAL INSURANCE AGENCY CONTRACTS IN APRIL 1992 AND AGREEING THE FIRMS WOULD SHARE THE PROFITS TESTIMONY ON CORPORATE RESPONSIBILITY WILL FOLLOW IN THE CASE INVOLVING DAI NIPPON PRINTING CO KOBAYASHI KIROKUSHI CO TOPPAN MOORE CO AND THE HITACHI INFORMATION SYSTEMS LTD UNIT OF HITACHI LTD LAST FALL 14 OF THE FIRMS' OFFICIALS WERE ARRESTED 10 OF THEM WERE INDICTED AND FIVE RECEIVED SUSPENDED SENTENCES OR FINES TAIWAN'S MAIN ECONOMIC INDICATOR DROPPED TO A 30MONTH LOW IN JUNE SIGNALING ECONOMIC GROWTH IS SLOWING THE INDICATOR FELL 3 POINTS TO 17 ITS LOWEST LEVEL SINCE IT HIT 15 IN DECEMBER 1990 THE SLOWDOWN REFLECTS SLUGGISH ECONOMIES IN TAIWAN'S EXPORT MARKETS PARTICULARLY THE US AND JAPAN TAIWAN PROJECTS 63 GROWTH THIS YEAR UP FROM 61 LAST YEAR ENVIRONMENTALLY CONSCIOUS CONSUMERS ARE OVERWHELMING GERMANY'S AMBITIOUS PROGRAM TO RECYCLE PLASTIC PACKAGING DUALES SYSTEM DEUTSCHLAND GMBH A PRIVATE COMPANY SET UP IN 1991 TO COORDINATE THE PROGRAM CAN RECYCLE 165000 TONS OF PLASTICS ANNUALLY BUT MORE THAN DOUBLE THAT AMOUNT IS LIKELY TO BE COLLECTED THIS YEAR BUT THE GOVERNMENT SAYS THE STOCKPILE WILL DISAPPEAR AS NEW RECYCLING PLANTS ARE BUILT DSD HOPES TO HANDLE 350000 TONS NEXT YEAR AND 800000 TONS BY 1996 DSD WAS SET UP BY HUNDREDS OF GERMAN COMPANIES THAT PAY A FEE TO PLACE A GREEN DOT LOGO ON THEIR RECYCLABLE PRODUCTS OMAN WILL PRIVATIZE THREE HOTELS THE PERSIAN GULF SULTANATE ORDERED AN APPRAISAL OF THE THREE PROPERTIES THE MUSCAT INTERCONTINENTAL WITH 285 ROOMS THE SEEB NOVOTEL 177 ROOMS AND THE SALALAH HOLIDAY INN 100 ROOMS EARLIER THIS WEEK OMAN UNVEILED PLANS TO SELL NEXT MONTH ITS STAKES IN AN INSURER AND ANOTHER HOTELIER THE EUROPEAN COMMUNITY COMMISSION PROPOSED RULES TO SAFEGUARD THE DESIGN OF PRODUCTS RANGING FROM FURNITURE TO MEDICAL EQUIPMENT GIVING DESIGNERS PROTECTION SIMILAR TO INVENTORS' PATENTS UNDER THE PLAN WHICH REQUIRES APPROVAL BY EC MEMBER STATES MOST DESIGNS WITH AN INDIVIDUAL CHARACTER WOULD BE ELIGIBLE FOR ECWIDE PROTECTION FROM COPYING FOR AS LONG AS 25 YEARS BUT IN A COMPROMISE AIMED AT THE AUTO INDUSTRY THE COMMISSION PROPOSED THAT SPARE PARTS BE PROTECTED FOR ONLY THREE YEARS ONCE THEY ARE PUT ON THE MARKET AUTO MAKERS INSISTED THAT ITEMS SUCH AS REPLACEMENT FENDERS AND HOODS SHOULD BE TREATED AS ANY OTHER PRODUCT AND GET LONGER PROTECTION BUT CONSUMER GROUPS ARGUED THAT GRANTING SUCH EXCLUSIVE RIGHTS TO MAJOR AUTO PRODUCERS WOULD ONLY DRIVE UP PRICES BY FORCING INDEPENDENT PARTS MAKERS OUT OF BUSINESS THE AUTO PARTS DEBATE IS BEING WATCHED CLOSELY IN THE US WHERE AUTO MAKERS HAVE TRIED BUT REPEATEDLY FAILED IN CONGRESS TO WIN DESIGN PROTECTION FOR THEIR BRANDNAME SPARE PARTS ANDORRA BECAME THE 184TH MEMBER OF THE UNITED NATIONS THE TINY PRINCIPALITY WEDGED BETWEEN FRANCE AND SPAIN HAS A POPULATION OF 56000 CROPEATING LOCUSTS INFESTED YEMEN AFTER CROSSING THE RED SEA FROM AFRICA ONE OF THE THREE GIANT CLOUDS OF LOCUSTS WHICH BEGAN INVADING SUNDAY WAS EIGHT MILES WIDE 9307290093 930729 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 44 DAYS 312 45 TO 65 DAYS 315 66 TO 119 DAYS 318 120 TO 149 DAYS 320 150 TO 179 DAYS 333 180 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 318 60 DAYS 323 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 264 TWO MONTHS 270 THREE MONTHS 294 SIX MONTHS 321 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 310 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 308 60 DAYS 309 90 DAYS 315 120 DAYS 317 150 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 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 9/16 SIX MONTHS 3 7/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 7 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 713 60 DAYS 720 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 705 60 DAYS 715 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 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 9307290092 930729 LEISURE & ARTS ON DISK ALL THE DUKE'S MEN FROM BIGARD TO WILLIAMS BY NAT HENTOFF WHEN HE ALLOWED HIMSELF SUBSTANTIAL SOLO SPACE THE ORCHESTRA LEADER PROVED TO BE A STRIKINGLY ORIGINAL PIANIST WITH ROOTS IN THE HARLEM STRIDE TRADITION AND SOUNDINGS BEYOND THE HORIZON THAT WERE TO INFLUENCE THELONIOUS MONK BUT MOST OF THE TIME AS BOTH CRITICS AND MUSICIANS SAID IN CHORUS DUKE ELLINGTON'S INSTRUMENT WAS HIS ORCHESTRA HE HIRED COMPELLINGLY PERSONAL IMPROVISERS REFERRING TO THEM ONSTAGE AS THESE EXPENSIVE GENTLEMEN WRITING TO THE STRENGTHS AND AVOIDING THE WEAKNESSES OF EACH ELLINGTON THEN PLACED THESE SINGULAR VOICES IN ORCHESTRAL TEXTURES THAT BOTH COMPLEMENTED THEM AND MADE THEM SERVE HIS MOODS FANTASIES AND MEMORIES SOME OF THESE FABLED SIDEMEN CHAFED AT BEING SO IDENTIFIED WITH THIS ROYAL LEADER AND THEY LEFT TO MAKE THEIR OWN FAME AND FORTUNE IT DIDN'T WORK OUT WHEN COOTIE WILLIAMS AND JOHNNY HODGES FOR INSTANCE FORMED THEIR OWN COMBOS THEY LACKED THE FULL FLAVOR AND AUTHORITY THAT CHARACTERIZED THEIR PLAYING WITH ELLINGTON ALTHOUGH THEY WERE NOW IN CHARGE THEY HAD BECOME DIMINISHED BUT THERE HAD BEEN A WAY FOR THEM TO LEAD THEIR OWN UNITS AND TAKE MORE SOLO SPACE WITHOUT LOSING THEIR MOORINGS DURING THE 1930S A SERIES OF RECORDINGS WERE MADE UNDER THE LEADERSHIP OF VARIOUS ELLINGTON SIDEMEN WILLIAMS HODGES REX STEWART AND BARNEY BIGARD A SIDEMAN ON NEARLY ALL THE SESSIONS WAS DUKE ELLINGTON BEING CONGENITALLY INCAPABLE OF BEING ONLY A SIDEMAN HE HELPED SHAPE THE MUSIC WHILE SOME OF THE PLAYERS WERE OCCASIONALLY AT ODDS WITH HIM ABOUT SALARY AND OTHER LABORMANAGEMENT MATTERS THEY GREATLY RESPECTED HIS UNCANNY MUSICIANSHIP THEY KNEW THEY HAD JOINED UPON THE ROAD AND IN RECORDING STUDIOS FOR A CONTINUOUS MASTER CLASS THESE SESSIONS OF CHAMBER JAZZ WEREN'T JUST JAM SESSIONS ENVELOPING MOODS WERE OFTEN SUSTAINED THE MYSTERIOUS DOOJI WOOJI A MOBILE BLUES THAT CONJURES UP UNCOUNTABLE LOSSES THE WRY RELAXED TEA AND TRUMPETS AND THE MAJESTICALLY SOARING JEEP'S BLUES WHICH BECAME A HIT ON JUKEBOXES ALL OVER HARLEM THERE ARE MANY MORE PLEASURES AND SUBTLE SURPRISES IN TWO NEW COLUMBIA/LEGACY SETS EACH CONTAINING TWO CDS ELLINGTON/THE DUKE'S MEN/SMALL GROUPS/VOL 1 AND THE DUKE'S MEN/VOL 2/19391939 THE SOLOISTS ARE TO USE ELLINGTON'S PHRASE BEYOND CATEGORY ALTO AND SOPRANO SAXOPHONIST HODGES WHO ALMOST NEVER SHOWED ANY EMOTION ON THE BANDSTAND HAD A SOUND AND WAYS OF PHRASING THAT WENT BEYOND ROMANTICISM TO SENSUOUS INTIMACY SIMILARLY LAWRENCE BROWN SURPASSED ALL OTHER TROMBONISTS IN HIS SEEMINGLY EFFORTLESS LYRICISM THAT OFTEN REFERRED TO WHAT GOES ON BEHIND CLOSED DOORS WILLIAMS WAS MORE THAN A GROWL TRUMPET PLAYER ALTHOUGH HE WAS A DISTINCTIVE SUCCESSOR TO BUBBER MILEY IN THAT SPECIALTY WILLIAMS HAD AN IRRESISTIBLE DRIVE AND SHEER DELIGHT IN PLUMBING THE POWERS OF HIS HORN STEWART A PUNGENTLY URBANE CONVERSATIONALIST AS WELL AS MUSICIAN AND AN ILLUMINATING JAZZ HISTORIAN CAME CLOSE TO TALKING ON HIS HORN HIS WAS A WITTY EBULLIENT STYLE THAT WAS UNLIKE THAT OF ANY OTHER JAZZMAN BIGARD PLAYED A LIQUID CLARINET IN THE NEW ORLEANS TRADITION BUT WITH FURTHER DIMENSIONS OF TONE AND JAZZ TIME ABSORBED IN HIS TRAVELS THROUGH VARIOUS JAZZ TERRITORIES HARRY CARNEY THE LARGE AND IMPERTURBABLY AMIABLE BARITONE SAXOPHONIST WHO ANCHORED THE REED SECTION HAS BEEN INSUFFICIENTLY APPRECIATED FOR HIS ABILITY TO TAKE HIS BULKY INSTRUMENT AND SOMEHOW TRANSFORM IT AT TIMES INTO A MOST DELICATE VOICE AS IN BLUE REVERIE IN THIS COLLECTION THERE ARE SOME CLINKERS IN THE SETS MOST NOTABLY THE PRESENCE ON A NUMBER OF SONGS OF ONE MARY MCHUGH HELEN OAKLEY DANCE WHO SUPERVISED MANY OF THESE SESSIONS BACK THEN AND WROTE THE NOTES NOW EXPLAINS THAT MCHUGH WHO SANG WITH ALL THE PASSION AND DYNAMICS OF A WILLIAM REHNQUIST SPEECH WAS IMPOSED ON THESE DATES BY IRVING MILLS HE THOUGHT THE PRESENCE OF A SINGER WOULD INCREASE THE POSSIBILITY OF A JUKEBOX HIT MILLS WAS ELLINGTON'S MANAGER AT THE TIME AND HIS NAME APPEARS AS COCOMPOSER ON SOME OF ELLINGTON'S PERENNIAL STANDARDS SINCE MILLS WAS NOT OTHERWISE KNOWN AS AN ACCOMPLISHED OR EVEN JOURNEYMAN COMPOSER OR LYRICIST THE NATURE OF HIS MUSICAL ASSISTANCE TO ELLINGTON'S WORK REMAINS A MYSTERY DANCE REPORTS THAT MILLS MAINTAINED THAT IDEAS CONTRIBUTED BY HIM TO A NUMBER OF DUKE'S FINISHED PRODUCTS ENTITLED HIM TO THESE CREDITS SHE DOES NOT HOWEVER SAY WHAT ANY OF THOSE IDEAS MIGHT HAVE BEEN ANYWAY MCHUGH'S PRESENCE TURNED OUT TO BE SO WHOLLY OUT OF PLACE THAT DANCE WROTE WHEN THE SESSION CONCLUDED I COMMISERATED WITH THE GROUP OVER THE TIME WASTED HERE TO MY SURPRISE JOHNNY HODGES DEMURRED SHE'S KIND OF CUTE' HE SAID SO WHO KNOWS WHAT MAKES FOR INSPIRATION MR HENTOFF IS A WRITER AND JAZZ CRITIC IN NEW YORK 9307290091 930729 CORRECTIONS & AMPLIFICATIONS BRUSH WELLMAN INC SAID IT EXPECTS EARNINGS FOR 1993 TO FALL SHORT OF THE 105 MILLION OR 65 CENTS A SHARE IT REPORTED IN 1992 IT ALSO SAID IT EXPECTS 1993 SALES TO IMPROVE FROM 1992 SALES OF 265 MILLION AN ARTICLE YESTERDAY INCORRECTLY USED THE COMPANY'S FOURTHQUARTER EARNINGS AND SALES AS THOSE FOR ALL OF 1992 9307290090 930729 WHO'S NEWS MONRO MUFFLER BRAKE INC MONRO MUFFLER BRAKE INC ROCHESTER NY LARRY DAY WAS NAMED CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS UNDERCAR REPAIR CHAIN MR DAY 43 YEARS OLD WAS FORMERLY A VICE PRESIDENT WITH MONTGOMERY WARD'S AUTO EXPRESS DIVISION HIS APPOINTMENTS WHICH ARE NEW TO THE COMPANY TAKE EFFECT IMMEDIATELY 9307290089 930729 LEISURE & ARTS GARDENING DINOSAURERA TREES GROW IN BROOKLYN BY PATTI HAGAN BROOKLYN NY LIKE MILLIONS OF OTHER HOLOCENE HORTICULTURISTS I HAVE LATELY BEEN FORCED TO THINK ABOUT THE POSSIBILITY THAT DINOSAURS COULD COME BACK TO SHARE MY GARDEN ACTUALLY THE IDEA HAS HAD ME WORRIED FOR DECADES LONG BEFORE THE MOVIE JURASSIC PARK PLANTED IT IN EVERYBODY'S HEAD AND AS I'VE BEEN SLEEPING BETWEEN DINOSAUR SHEETS SINCE 1987 I THINK I HAVE A RIGHT TO PICK A FEW BONES WITH STEVEN SPIELBERG AND MICHAEL CRICHTON THEIR THRILLER IS FINE AS FAR AS IT GOES BUT IT DOESN'T GO FAR ENOUGH IT NEGLECTS THE HORTICULTURAL POTENTIAL OF THE STORY AS A GARDENER AND STUDENT OF PALEOBOTANY I AM HERE TO TELL YOU THAT IF SOME JUMBO JURASSIC LIZARDS HAD ESCAPED FROM THAT PARK AND THUNDERED INTO THE REAL WORLD THEY WOULD HAVE FOUND PLENTY OF JURASSIC PLANTS TO FEAST ON BEGINNING WITH THE GINKGOES IN MY NEIGHBORHOOD IN FACT QUITE A FEW JURASSIC PLANTS NEVER WENT THE WAY OF THE DINOS THE GINKGOES ENTERED THE FOSSIL RECORD BEFORE THE DINOSAURS BUT THEY'RE STILL HERE AND AMONG OUR TOUGHEST MOST ABUSETOLERANT URBAN TREES CHARLES DARWIN CALLED THEM LIVING FOSSILS BUT OTHER DINOSAURCOMPANION PLANTS CONIFERS CYCADS CYPRESSES SEQUOIAS HORSETAILS CATTAILS TYPHA LATIFOLIA ARAUCARIA MONKEY PUZZLE TREES NORFOLK ISLAND PINES TREE FERNS CYATHEACEAE CLUB MOSSES YCOPODIUM SELAGINELLA ARE READILY AVAILABLE TODAY FROM AMERICAN NURSERIES IT'S SURPRISING THEN THAT JURASSIC PARK'S MERCHANDISERS WHO HAVE TIED IN LUNCH BOXES SLEEPING BAGS TEMPORARY TATTOOS AND A THOUSAND OTHER MODERN KIDDIE ITEMS TO THE CURRENT DINOCRAZE HAVE NOT TRIED TO HAWK A SINGLE STILLLIVE JURASSIC PLANT OR CULTIVAR TO ADULT GARDENERS HERE FOR ONCE IS A SITUATION IN WHICH THE PUBLIC SECTOR HAS COMPLETELY OVERLEAPT THE PRIVATE AS IT HAPPENS ON CAPITOL HILL THE US BOTANIC GARDEN THE OLDEST GARDEN OF ITS KIND IN AMERICA CHARTERED BY CONGRESS IN 1820 AND PROPOSED BY GARDENING FOUNDING FATHERS INCLUDING GEORGE WASHINGTON AND THOMAS JEFFERSON WHO WANTED A NATIONAL BOTANIC GARDEN GROWING AT THE SEAT OF GOVERNMENT THIS MONTH OPENED THE NATION'S ONLY DINOSAUR GARDEN THE US BOTANIC GARDEN CAME UP WITH THE DINOSAUR GARDEN CONCEPT IN 1987 THREE YEARS BEFORE JURASSIC PARK THE BOOK AND SIX YEARS BEFORE JURASSIC PARK THE MOVIE YET IT'S SO SHY ON DINOHYPE I COULDN'T EVEN GET A PRESS RELEASE ABOUT IT WHAT THIS FEDERAL JURASSIC INITIATIVE PROVES IS THAT EVEN AFTER 140 MILLION YEARS IT IS NOT TOO LATE FOR AMERICANS TO TAKE UP DINOSAUR GARDENING FINALLY WITH FIRM PALEOLEADERSHIP FROM THE HILL JURASSIC REVIVALIST GARDENERS CAN GET BEYOND THE PERENNIAL BORDER AND BEGIN TALKING UP THE MILLENNIAL BORDER THE CLASSIC JURASSIC MILLENNIAL BORDER WILL BE A VERY BASIC GREEN STATEMENT A PURE CHLOROPHYLLIC DISPLAY GARDEN A PREFLORAL EDEN INNOCENT OF ALL THE SEXUAL INNUENDO THE POSTJURASSIC EVOLUTION OF FLOWERING PLANTS HAS BROUGHT TO THE GARDEN BED AND IT WILL BE SO MUCH SIMPLER TO DESIGN NO COLOR PALETTES TO WORRY ABOUT NO JEKYLLESQUE DRIFTS OF TINT AND HUE TO SHAPE NO MORE PAINTING WITH PLANTS IN THE THROES OF MY NEW JURASSICGARDENING GEIST I NOW APPRECIATE WHAT I HAVE OUT FRONT THE BONES OF A STREETSIDE JURASSICPERIOD GARDEN INADVERTENTLY BEGUN 12 YEARS AGO WITH THE GIFT OF A GINKGO BILOBA SEEDLING FOUND IN SHERIDAN SQUARE AND POTTED UP BY THE VENERABLE GREENWICH VILLAGE GARDEN DESIGNER PAMELA BERDAN AND I HAVE BEEN READING UP ON JURASSICPERIOD PLANT BASICS SO AS TO BE ABLE EVENTUALLY TO SET UP A PLANT GUIDANCE OR PG13 RATING SYSTEM TO ASSIST OTHERS ALSO RECENTLY OVERCOME BY JURASSICPLANT CHIC THOUGH PERHAPS SUCH RATINGS ARE BEST LEFT TO THE SURETOBE FOUNDED AMERICAN JURASSIC GARDENING SOCIETY THE LITERATURE SUCH AS THE 1950 TEXT BOTANY AN EVOLUTIONARY APPROACH BY R DARNLEY GIBBS IS STUDDED WITH EPITHETS THAT MAKE JURASSICPERIOD PLANTS SOUND PECULIAR AND FASCINATING HORSETAILS EQUISETUM SPECIES ARE AN ANCIENT GROUP OF JOINTED HABIT ARTICULATED PLANTS LIVING FOSSILS ODD PLANTS GIVEN MY ACUTE NEW JURASSIC SENSIBILITY I NOW REGRET HAVING BEHAVED LIKE A TROGLODYTE ON MEMORIAL DAY IGNORANT OF THE HORSETAILS' EXTREME ANTIQUITY I RIPPED A SHORT TON OF EQUISETUM ARVENSE FROM MY MOTHER'S PERENNIAL BORDERS NEAR SEATTLE AND DUMPED THEM ON THE COMPOST HEAP OF GARDEN HISTORY NEXT TIME THEY GO TO THE SMITHSONIAN AROUND SEATTLE HORSETAILS ARE REVILED AS PERNICIOUS 190MILLIONYEAROLD WEEDS NORTHWEST GARDENERS HAVE USED EVERY POISON IMAGINABLE TO MAKE HORSETAILS INTO DEAD FOSSILS BUT TO NO AVAIL WEEDKILLERS ARE NOTHING AGAINST MILLENNIAL JURASSIC VIGOR WAS I THE ONLY HOLOCENE GARDENER THEN TO WAKE UP JULY 2 THE DAY AFTER JURASSIC PARK HAD TAKEN IN 183 MILLION AMAZED TO READ THAT UNIVERSAL STUDIOS WAS THREATENING TO SUE THE LITTLE ERIE ZOO IN PENNSYLVANIA FOR TRADEMARK INFRINGEMENT BECAUSE IT NAMED ITS NEW DINOSAUR DISPLAY JURASSIC JUNGLE PRONTO I DECIDED TO CALL MY VERY PUBLIC FRONT GARDEN THE JURASSICPERIOD GARDEN AND TO WRITE A THINLY VEILED PAPERBACK WITH THE SAME TITLE IN SHORT ORDER I WILL FOLLOW IT WITH ANOTHER PAPERBACK THIS ONE NONFICTION THE MAKING OF THE JURASSICPERIOD GARDEN IN THE HOPE THAT WHEN BOTH BOOKS ARE NO 1 ON THEIR RESPECTIVE PAPERBACK BESTSELLER LISTS AT THE SAME TIME UNIVERSAL STUDIOS ET AL WILL THREATEN TO SUE ME FOR JURASSIC INFRINGEMENT THUS ENSURING CONTINUED DINOSIZED SALES TILL THEN I SHALL TROWEL ON REGARDLESS CULTIVATING MY CLASSIC JURASSIC MILLENIAL BORDER IN MY JURASSICPERIOD GARDEN AND CONTINUING TO ORDER JURASSICPERIOD PLANTS FROM THE MANY MAILORDER NURSERIES NOT ONE HAS JURASSIC IN ITS NAME AS YET THAT PROPAGATE THESE LIVE JURASSIC FOSSILS SET OUT IN THE ANDERSEN HORTICULTURAL LIBRARY'S SOURCE LIST OF PLANTS AND SEEDS 1993 ANDERSEN HORTICULTURAL LIBRARY MINNESOTA LANDSCAPE ARBORETUM 3675 ARBORETUM DRIVE BOX 39 CHANHASSEN MN 553170039 3495 GIVEN A LITTLE ENCOURAGEMENT THE NURSERIES COULD BEGIN ADVERTISING PLANTS TOUGHER THAN DINOSAURS PLANTS THAT SURVIVE LIVE MILLIONS OF YEARS NO AMBER NO RECOMBINANT DNA AND AT THE RATE THAT CERTAIN MONOPOLISTIC NURSERIES ARE ATTEMPTING TO LOCK UP THE LEGAL RIGHT TO SELL CERTAIN VERY POPULAR PLANTS UNDER PATENTS AND TRADEMARKS WE JURASSIC GARDENERS SHOULD EXPECT A PATENTED TRADEMARKED TIEDIN GINKGO BILOBA SPIELBERG'S JURASSIC PARK' BY THE TIME THE MOVIE MAKES ITS FIRST BILLIONDOLLAR GREEN STATEMENT 9307290088 930729 WHO'S NEWS NORTHWESTERN MUTUAL LIFE INSURANCE CO NORTHWESTERN MUTUAL LIFE INSURANCE CO MILWAUKEE JAMES D ERICSON CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER WILL BECOME CHIEF EXECUTIVE OFFICER EFFECTIVE OCT 1 AS CHIEF EXECUTIVE THE 57YEAROLD MR ERICSON WILL SUCCEED DONALD J SCHUENKE 64 WHO WILL REMAIN CHAIRMAN UNTIL HE REACHES MANDATORY RETIREMENT AGE IN JANUARY 1994 MR ERICSON WILL DROP THE CHIEF OPERATING TITLE UPON BECOMING CHIEF EXECUTIVE 9307290087 930729 FLOOD WATCH BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE COMPILED BY THE CHICAGO BUREAU QUICKGROWING GRAINS ARE BEING PLANTED IN SOME SOGGY FIELDS AS RAINS SWAMP MILLIONS OF ACRES OF CORN AND SOYBEANS MIDWEST FARMERS ARE TURNING TO FASTGROWING CROPS THEY CAN PLANT AND HARVEST IN THE REMAINING TWO MONTHS OF GROWING SEASON SOME CHOICES SUCH AS MILLET SUNFLOWERS AND BUCKWHEAT ARE LESS PROFITABLE IN WAUBAY SD WILLIAM DAVIS PLANTS 100 ACRES OF MILLET A BIRD FEED BUT THERE ARE NO GUARANTEES THE MILLET WON'T DO WELL EITHER IF IT DOESN'T STOP RAINING HE SAYS SALES OF SUNFLOWER SEED JUMP 40 FROM LAST YEAR AT INTERSTATE PAYCO SEED CO WEST FARGO ND PARTLY BECAUSE SUNFLOWERS GROW FASTER THAN CORN AND AT SEXAUER CO IN BROOKINGS SD MILLETSEED SALES DOUBLE AND SEED SALES OF BUCKWHEAT WHICH IS MADE INTO NOODLES FOR ASIA CLIMB 21 FROM LAST YEAR THE SEED FIRMS EXPECT BRISK SALES THIS FALL OF RYE AND OATS PLANTED TO PROTECT FLOODSCARRED FIELDS FROM WIND EROSION BUT SEED SALES IN SOAKED PARTS OF THE FARM BELT DECLINE AS FARMERS RETURN UNUSED CORN AND SOYBEAN SEED FLOTSAM JETSAM AND SCAM 'EM RIPOFFS MAY RISE AS WATERS RECEDE IOWA OFFICIALS ISSUE SUBPOENAS TO VENDORS OF PORTABLE TOILETS SUSPECTED OF JACKING UP RATES TO 60 A DAY FROM 60 A MONTH CARPET CLEANERS CHARGING 350 AN HOUR ALSO ARE SCRUTINIZED MISSOURI INVESTIGATES MOBILEHOME HAULERS WHO ALLEGEDLY RAISED RATES TENFOLD WHILE MINNESOTA IS ON THE LOOKOUT FOR TELEMARKETERS FRONTING FOR PHONY CHARITIES MEANWHILE MANY PUBLICSERVICE ADS CAUTION AGAINST SENDING CASH MIDWESTERN STATE ATTORNEYS GENERAL ARE MARSHALING FORCES TO BATTLE PRICE GOUGING AND SCAMS THAT MAY POP UP STATE CONSUMERPROTECTION OFFICIALS MET EARLIER THIS MONTH WITH THE ATTORNEY GENERAL OF FLORIDA WHICH WAS BESIEGED BY CON MEN AFTER HURRICANE ANDREW FLORIDA OFFICIALS AND AN INSURANCECOMPANY INVESTIGATOR TRAVELED TO DES MOINES TO BRIEF IOWA OFFICIALS ON SCAMS A SILVER LINING BRINGS POSTFLOOD BUSINESS TO SOME MIDWESTERN FIRMS TRADING VOLUME IN GRAIN CONTRACTS AT THE CHICAGO BOARD OF TRADE JUMPS SOME 60 FROM LAST YEAR DEERE & CO IN MOLINE ILL SAYS SALES OF ITS RIDING LAWN MOWERS RISE 20 IN UNFLOODED AREAS AS RAIN SPURS GRASS GROWTH SALES OF PLUMBING PARTS AND GENERATORS RISE AT A DES MOINES PAYLESS CASHWAYS STORE AIRCONDITIONER SALES GAIN BY NEARLY 50 SAYS ONE DES MOINES DEALER SOILTESTING LABS EXPECT ROBUST DEMAND FOR KITS THAT MEASURE SOIL FERTILITY AND SCAN FOR MOLD BUT THERE IS NO CONSTRUCTION BOOM YET FARMERS MAY NOT WANT TO START REBUILDING IMMEDIATELY SAYS CONTINENTAL MATERIALS CORP A CHICAGO MAKER OF WALLBOARD AND CEILING TILE OTHERS MAY WANT TO WAIT UNTIL THEIR INSURANCE CHECKS COME IN ALLIED CONSTRUCTION SERVICES BETTENDORF IOWA SAYS IT HASN'T RECEIVED A SINGLE CALL IN THE PAST WEEK BECAUSE FEW CARS WERE DESTROYED IN THE FLOODS MIDWEST DEALERS AREN'T SELLING REPLACEMENTS IF WE MADE AN ARK IT WOULD BE OUR BESTSELLING PRODUCT SAYS BRUNSWICK CORP A LAKE FOREST ILL BOAT MAKER RUBBERNECKERS GAWKING AT DES MOINES FLOOD SCENES CAUSE TRAFFIC JAMS AND MINOR ACCIDENTS STATE POLICE SAY AND AMERICAN AUTOMOBILE ASSOCIATION OFFICES ARE DELUGED WITH CALLS FOR INFORMATION ABOUT SPECIFIC ROADS AND BRIDGES SAYS THE AAA COME ON IN THE WATER'S FINE IS A SLOGAN DES MOINES CONVENTION MARKETING OFFICIALS CONSIDER IN ORDER TO REASSURE SKITTISH GROUPS THAT THE CITY'S WATER SUPPLY IS RESTORED ONLY ONE EVENT AN AMATEUR ATHLETIC UNION TOURNAMENT CANCELS SO FAR BUT THAT LOSS TO OKLAHOMA COST DES MOINES HOTELS 5000 ROOMNIGHTS THE STATE FAIR AND AN AIR SHOW STILL ARE ON FOR AUGUST CRISIS COUNSELING DEMAND GROWS A FLOOD HOT LINE IN MISSOURI LOGS SOME 200 CALLS IN A WEEK MANY FROM PEOPLE WHO MOVED BACK INTO THEIR DAMAGED HOMES AND REQUESTS FOR AID AT A POLK COUNTY IOWA MENTALHEALTH CLINIC ALSO SKYROCKET KINDNESS FROM STRANGERS AGAIN HELPS FUND DISASTERRELIEF EFFORTS BUOYED BY MANY BIG CORPORATE GIFTS IN RECENT WEEKS OVER 6 MILLION WASHES INTO THE AMERICAN RED CROSS DISASTERRELIEF FUND BRINGING THE TOTAL TO SOME 51 MILLION A YEAR AGO BEFORE HURRICANE ANDREW HIT THE DISASTERRELIEF FUND HAD TO BORROW MONEY IN THE YEAR ENDED JUNE 30 THE RELIEF FUND RAISED 178 MILLION SPENT 142 MILLION INCLUDING SOME 84 MILLION TO HURRICANE VICTIMS AND HAD SOME 45 MILLION ON HAND FOR THE MIDWEST'S RAINY DAY THE RED CROSS EXPECTS ITS FLOOD COSTS TO RUN 1520 MILLION AND IT WOULD LIKE TO RAISE HALF THAT SUM IN ORDER TO REPLENISH FUNDS THE SALVATION ARMY GETS 1 MILLION FROM ROSS PEROT WALMART GIVES OVER 1 MILLION IN CASH AND GOODS TO THE RED CROSS AND THE SALVATION ARMY THE CHICAGO BOARD OF TRADE GIVES 100000 TO THE AMERICAN FARM BUREAU CELEBRITIES CHIP IN THE ST LOUIS SYMPHONY PLEDGES CONCERT RECEIPTS AND MIDWEST TV STATIONS PLAN A FLOOD AID TELETHON TONIGHT FROM DES MOINES A DES MOINES TV STATION RAISES FUNDS BY SELLING VIDEO HIGHLIGHTS OF THE FLOOD PACKAGED IN A SANDBAG FOR 1745 BRIEFS SOAPMAKER DIAL CORP GIVES AWAY SOAP AND BLEACH TO FLOOD VICTIMS ALONG WITH INSTRUCTIONS ON HOW TO WASH THEIR HANDS USE A BRUSH WASH FOR 30 SECONDS RINSE WELL THE MISSOURI HISTORICAL SOCIETY IN ST LOUIS OFFERS ADVICE ON SALVAGING WATERDAMAGED PHOTOS BOOKS AND TEXTILES 9307290086 930729 THE RECKONING REAL ESTATE COLLAPSE IN JAPAN IS HAMMERING BOTH BUYERS AND BANKS WATANABE SEES HIS EMPIRE IN TOKYO AND HAWAII SHRIVEL DAY AFTER DAY CAPTAIN ON A SHIP OF MUD' BY CLAY CHANDLER AND JOHN BUSSEY STAFF REPORTERS OF THE WALL STREET JOURNAL KONA HAWAII A THICKET OF WEEDS AND VINES ENTANGLES THE DECAYING HULK OF THE KONA LAGOON HOTEL PLYWOOD COVERS THE SHATTERED WINDOWS PLEASE SHOWER BEFORE ENTERING THE POOL READS A FADED SIGN NEXT TO A CONCRETE PIT FULL OF BROWN SLUDGE AND ROTTING COCONUTS IT'S ALL A FAR CRY FROM THE VISION KITARO WATANABE JAPAN'S MOST FLAMBOYANT PROPERTY MOGUL HAD FOR THE HOTEL WHEN HE BOUGHT IT A FEW YEARS AGO THE FREEWHEELING BILLIONAIRE PLANNED TO RENOVATE THE SPRAWLING KONA LAGOON AND CONNECT IT TO A LARGE HOTEL HE OWNED NEXT DOOR OVERLOOKING THE TRANQUIL BEACHFRONT HERE HIS PLAN WAS GRAND AMBITIOUS AND EXPENSIVE BUT WHY NOT THIS WAS THE 1980S AND JAPANESE DEVELOPERS SEEMED TO RULE THE WORLD NO MORE NOW MR WATANABE'S FARFLUNG EMPIRE IS A SHAMBLES INDEED ANALYSTS SAY IT MAY BE ON THE VERGE OF BECOMING ONE OF THE LARGEST AND MESSIEST BANKRUPTCIES IN JAPANESE HISTORY THE CRUMBLING KONA LAGOON STANDS AS A MONUMENT TO THE LIMITS OF MR WATANABE'S WEALTH IT IS ALSO A SYMBOL OF THE SHATTERED WORLD OF MANY OF JAPAN'S OTHER PROPERTY BARONS ONCE UNSTOPPABLE JAPAN'S VORACIOUS REALESTATE INVESTORS DURING THE 1980S GOBBLED UP HOTELS IN HAWAII OFFICE BUILDINGS IN LOS ANGELES GOLF COURSES IN FLORIDA AND LANDMARK TOWERS IN NEW YORK NOW THE INTERNATIONAL PROPERTY CRISIS HAS HIT JAPAN WITH TYPHOON FORCE TOKYO'S SKYLINE IS CLUTTERED WITH THE SKELETONS OF EMPTY AND HALFFINISHED OFFICE TOWERS COMMERCIAL LAND PRICES IN TOKYO HAVE TUMBLED NEARLY 40 FROM THEIR PEAK ACCORDING TO ONE WIDELY ACCEPTED ESTIMATE TOKYO LANDLORDS FEAR THAT COMMERCIAL VALUES COULD SINK ANOTHER 20 TO 30 THIS YEAR AND ALEXANDER KINMONT A PROPERTY SPECIALIST AT MORGAN STANLEY JAPAN BELIEVES THEY ALREADY HAVE BUT NO ONE CAN BE CERTAIN BECAUSE FEAR HAS PARALYZED THE MARKET IN TOKYO AND OSAKA THERE ARE VIRTUALLY NO SALES VACANCY RATES FOR BUILDINGS IN SOME SECTIONS OF TOKYO HAVE CLIMBED TO 30 LANDLORDS ARE QUIETLY SLASHING RENTS THOUGH MANY NOW MAKE TENANTS SIGN CONFIDENTIALITY AGREEMENTS SO THE WORD WON'T GET AROUND MEANWHILE TOKYO DEVELOPERS ARE EXPECTED TO DUMP SOME 33 MILLION SQUARE FEET OF NEW OFFICE SPACE ONTO THE MARKET ANNUALLY FOR SEVERAL YEARS AN AVALANCHE THAT EXCEEDS EVEN THE FLOW AT THE HEIGHT OF JAPAN'S ECONOMIC BOOM BAD AS ALL THIS IS FOR PROPERTY OWNERS THE EFFECTS GO WELL BEYOND THEM THE COLLAPSE IS STRAINING THE RESOURCES OF JAPANESE BANKS DRYING UP LIQUIDITY AS SUCH IT COULD FURTHER DELAY A RECOVERY OF THE WORLD'S SECONDLARGEST ECONOMY WITH REPERCUSSIONS FOR ECONOMIES WORLDWIDE JAPAN'S 21 MAJOR BANKS REPORTED NONPERFORMING LOANS TOTALING 110 BILLION AT MARCH 31 A SUM EQUAL TO ABOUT HALF THEIR TOTAL PAIDIN CAPITAL ABOUT A THIRD OF THE BAD LOANS ARE PROPERTYRELATED JAPAN'S LAX DISCLOSURE REQUIREMENTS MAY CONCEAL MUCH DEEPER WOES JUDGED BY US STANDARDS TROUBLED LOANS MAY BE TWICE THE REPORTED AMOUNT ANALYSTS SAY NEW SIGNS OF BANK WEAKNESS SEEM TO SURFACE EVERY DAY EARLIER THIS MONTH THE LONGTERM CREDIT BANK OF JAPAN SAID IT WOULD WRITE OFF A SUBSTANTIAL PORTION OF ITS 200 BILLION YEN OR ABOUT 183 BILLION IN LOANS TO EIE INTERNATIONAL CORP A RESORT DEVELOPER STRUGGLING TO RESTRUCTURE ITS 68 BILLION OF DEBT EIE INTERNATIONAL'S FOUR OTHER MAJOR LENDERS INCLUDING MITSUI TRUST & BANKING CO MR WATANABE'S MAIN BANK HAVE SAID THEY TOO ARE CONSIDERING MAJOR WRITEOFFS THE SEISMIC SHOCK HAS SENT A TIDAL WAVE ONTO US SHORES MAJOR LENDERS HAVE SHARPLY REDUCED JAPAN'S REALESTATE INVESTMENT OVERSEAS LAST YEAR NEW JAPANESE OUTLAYS FOR US PROPERTY TOTALED JUST 807 MILLION LESS THAN ONESIXTH THE PEAK YEAR OF 1988 ACCORDING TO KENNETH LEVENTHAL & CO IN HAWAII EVIDENCE OF THE BUST IS EVERYWHERE FLATTENING A BOOM THAT BETWEEN 1985 AND 1992 HAD JAPANESE INVESTORS POURING MORE THAN 16 BILLION INTO ISLAND REAL ESTATE JAPANESE INVESTORS NOW OWN MORE THAN 60 OF THE LUXURY HOTEL ROOMS IN HAWAII VIRTUALLY ALL OF HAWAII'S MAJOR HOTEL PROJECTS IN THE LAST FIVE YEARS WERE FINANCED WITH JAPANESE CAPITAL DURING THAT PERIOD THE NUMBER OF FOURSTAR AND FIVESTAR HOTEL ROOMS NEARLY DOUBLED NEARSIMULTANEOUS RECESSIONS IN THE US AND JAPAN HAVE BLINDSIDED HAWAII'S TOURIST INDUSTRY HOTEL OCCUPANCY RATES HAVE TUMBLED AVERAGING BARELY TWOTHIRDS LAST YEAR AND JAPAN'S FORMERLY AGGRESSIVE REALESTATE INVESTORS ARE IN RETREAT MR WATANABE WHO STUNNED HAWAIIANS BACK IN 1986 WITH A 500 MILLION BUYING SPREE THAT TOOK IN SEVERAL OF THE STATE'S MOST EXCLUSIVE HOTELS HAS STUBBORNLY RESISTED JOINING THE HAWAIIAN WITHDRAWAL HIS AZABU GROUP OF COMPANIES STILL OWNS FIVE HOTELS WITH NEARLY 4000 ROOMS IN THE ISLANDS INCLUDING THE WAIKIKI HYATT REGENCY THE MAUI MARRIOTT AND THE MORIBUND KONA LAGOON HIRO NAGASAWA PRESIDENT OF AZABU USA CORP WHICH OVERSEES THE HAWAII PROPERTIES CONCEDES THAT OCCUPANCY RATES ARE REALLY BAD NOWFEWER PEOPLE AND SHORTER STAYS AT TIMES THE COMPANY'S KEAUHOU BEACH HOTEL HAS BEEN ABLE TO FILL ONLY HALF ITS ROOMS BUT THOUGH HE IS TOUGHING IT OUT IN HAWAII MR WATANABE HAS BEEN HAMMERED MERCILESSLY FOR THE PAST TWO YEARS AZABU GROUP HAS STAGGERED UNDER DEBT OF MORE THAN 740 BILLION YEN OR ABOUT 68 BILLION ITS INTEREST PAYMENTS ARE BELIEVED TO BE WELL OVER 1 MILLION A DAY IN MARCH MR WATANABE WHO WOULDN'T COMMENT FOR THIS ARTICLE THREW OUT A TEAM THAT MITSUI TRUST HAD SENT TO RESTRUCTURE AZABU'S DEBT NOW THE BANK HAS MOVED TO FREEZE AZABU'S FARFLUNG ASSETS AZABU HAS BECOME A SHIP OF MUD THE PUBLICITYSHY MR WATANABE CONCEDED RECENTLY IN A RARE INTERVIEW WITH A LITTLEKNOWN JAPANESE BUSINESS MAGAZINE GEKKAN KEIEI JUKU BUT HE DECLARED I'M STILL THE CAPTAIN EVEN IF AN INEPT ONE JAPAN INC HAS A WAY OF ABSORBING ITS FAILURES SHORT OF BANKRUPTCY COURT AND THE SAME MAY HAPPEN WITH AZABU MITSUI TRUST WON'T DISCUSS DETAILS OF ITS RELATIONS WITH AZABU BUT SAYS IT IS EAGER TO SEE MR WATANABE RESTRUCTURE HIS OPERATIONS MR WATANABE ASSERTED IN THE MAGAZINE INTERVIEW THAT MITSUI WAS DUMPING HIS ASSETS AT FIRESALE PRICES I'D HEAR THEY HAD SOLD A PROPERTY FOR 30 MILLION YEN AND I'D THINK 'AH I KNEW SOMEONE WHO WOULD HAVE PAID 90 MILLION YEN' HE SAID WHEN IT COMES TO BUYING AND SELLING REAL ESTATE HE ADDED I'M THE PROFESSIONAL ON ONE OCCASION HE SAID I GOT DOWN ON MY KNEES TO BEG MITSUI EXECUTIVES NOT TO SELL OFF A SUBSIDIARY BUT TO NO AVAIL IN THE ARTICLE WHICH AZABU OFFICIALS SAY QUOTED THEIR BOSS ACCURATELY MR WATANABE ACKNOWLEDGED THAT AT CURRENT MARKET PRICES HIS VAST HOLDINGS IN TOKYO AND HAWAII ARE WORTH ONLY HALF HIS TOTAL DEBTS BUT HE ARGUED THAT THE VALUES WILL RECOVER IN THREE TO FIVE YEARS CHAIRMAN WATANABE HAS DEMONSTRATED AN EXTRAORDINARILY STRONG ATTACHMENT TO HIS ASSETS GRUMBLED MITSUI TRUST IN AN UNUSUAL LETTER TO AZABU CREDITORS WE CANNOT FATHOM HIS TRUE INTENTIONS NOR CAN A LOT OF OTHERS WITHOUT ITS PRINCIPAL BANK'S SUPPORT IT IS UNCLEAR HOW AZABU GROUP WILL SURVIVE IT WAS MITSUI TRUST THAT PERSUADED AZABU'S NEARLY 70 OTHER CREDITORS TO LET THE COMPANY DEFER INTEREST PAYMENTS IN RETURN THE BANK PROMISED TO MAKE SURE MR WATANABE UNLOADED AT LEAST 280 BILLION YEN OF HOLDINGS AND RESUMED INTEREST PAYMENTS BY DECEMBER 1993 IT STARTED THE PROCESS BRIEFLY ASSUMING POWER OVER AZABU INTERESTS BUT THE BANK HADN'T RECKONED ON MR WATANABE'S PERSISTENCE IN MARCH THE WILY PROPERTY BARON CALLED A SECRET MEETING OF AZABU SHAREHOLDERS MOST OF WHOM ARE FAMILY AND FRIENDS AND VOTED TO THROW OUT THE MITSUI RESCUE TEAM THUS REGAINING CONTROL THE DANGER NOW IS THAT IMPATIENT CREDITORS WILL FORCE AZABU INTO BANKRUPTCY A STEP THAT WOULD LEAD TO A CASCADE OF BANK WRITEDOWNS AND POSSIBLY TOPPLE SOME OF THE SMALLER CREDITORS MR WATANABE'S COMPANIES ARE PRIVATELY HELD AND INFORMATION ABOUT THEIR FINANCIAL STATUS IS SCARCE BUT JAPANESE CREDIT AND REALESTATE ANALYSTS SAY THAT AZABU BUILDING CO HIS FLAGSHIP FIRM HAS NEVER GENERATED MUCH PROFIT IN ITS BEST YEAR 1989 THE COMPANY EARNED PRETAX PROFIT EQUAL TO ABOUT 128 MILLION ON SALES OF ABOUT 3257 MILLION ACCORDING TO TEIKOKU DATA BANK LTD A TOKYO CREDITRATING CONCERN PROFIT FELL 90 IN 1990 AND IN 1991 AZABU POSTED A LOSS EQUAL TO ABOUT 6367 MILLION NUMBERS AREN'T AVAILABLE FOR 1992 ONCE THE 92 BILLION MAN IN 1989 FORBES MAGAZINE RANKED MR WATANABE AS THE WORLD'S SIXTHRICHEST PERSON AND ESTIMATED HIS WEALTH AT 92 BILLION NOW LOCAL PRESS REPORTS SAY HIS COMPANY IS SO STRAPPED IT IS RUNNING SHORT OF PETTY CASH I CAN'T IMAGINE WHAT WATANABE IS THINKING SAYS A FORMER AZABU EXECUTIVE MITSUI WAS HIS LIFELINE HE'S CUT HIS OWN THROAT IT IS A STARK REVERSAL FOR A MAN NOW 59 YEARS OLD WHO ONCE PERSONIFIED JAPAN'S ECONOMIC BOOM MR WATANABE ONCE FETED CELEBRITIES AND POLITICIANS AT HIS LAVISH TOKYO RESIDENCE SPENT WEEKENDS ON HIS YACHT AND WEEKDAYS GLIDING BETWEEN APPOINTMENTS IN VINTAGE ROLLSROYCES AND ASTON MARTINS HE COLLECTED THOUSANDS OF JAPANESE WOODBLOCK PRINTS FOR HIS OWN MUSEUM AND GOLFED AT HIS OWN COUNTRY CLUB HIS RISE WAS A BUSINESS LEGEND AT THE AGE OF 11 HE HAD LOST HIS FAMILY WHEN US BOMBERS FLATTENED TOKYO ORPHANED HE ACCEPTED AN EIGHTYEAR APPRENTICESHIP AT A RURAL TEXTILE FACTORY RETURNING TO TOKYO HE FOUND WORK AS A MOTORBIKE SALESMAN THEN AS AN AUTO DEALER THE DEALERSHIP PROSPERED AND HE BEGAN TO BUY LAND IN THE 1980S AS LAND VALUES SOARED THE SCRAPPY CAR DEALER TRANSFORMED HIMSELF INTO A SWASHBUCKLING REALESTATE BILLIONAIRE YET ASSOCIATES CONTEND HE HAS ONLY A RUDIMENTARY UNDERSTANDING OF THE REALESTATE BUSINESS SOME ATTRIBUTE HIS SUCCESS TO A KNACK FOR CULTIVATING POWERFUL OLDER PATRONS INCLUDING SUCH FIGURES AS THE LATE OSANO KENJI A LEGENDARY POLITICAL FIXER WITH TIES TO JAPAN'S UNDERWORLD IT WAS NOT UNTIL THE EARLY 1980S WHEN HE LINKED UP WITH MITSUI TRUST'S FUTURE PRESIDENT KEN NAKAJIMA THAT MR WATANABE'S FORTUNES TRULY SOARED AZABU BUILDING ACQUIRED MORE THAN 90 OF ITS PROPERTIES AFTER BECOMING A CLIENT OF THE BANK WHICH EVENTUALLY LENT AZABU MORE THAN 250 BILLION YEN OR 225 BILLION AT CURRENT EXCHANGE RATES MITSUI HAD ITS OWN REASONS FOR BACKING MR WATANABE IT HAD SLIPPED TO THIRD FROM FIRST AMONG THE NATION'S TRUST BANKS IN LENDING MR NAKAJIMA VOWED TO DOUBLE THE BANK'S LOAN PORTFOLIO AND WAS SOON PUSHING HUGE SUMS AT DOZENS OF COMPANIES LIKE AZABU A CLASS OF NEWLY RICH LANDOWNERS WITH AN APPETITE FOR HIGHRISK VENTURES WITH INTEREST RATES LOW AND ASSET PRICES CLIMBING THE STRATEGY WORKED BRILLIANTLY AT FIRST MITSUI ASSEMBLED A FLYING CIRCUS OF STOCK AND PROPERTY ACROBATS WHO SEEMED TO VAULT EFFORTLESSLY FROM ONE LUCRATIVE INVESTMENT TO ANOTHER BY 1989 MITSUI HAD RECLAIMED ITS POSITION AS JAPAN'S MOST POWERFUL TRUST BANK THEN THE WORLD CHANGED IN JANUARY 1990 AFTER SLOGGING THROUGH 18 HOLES OF GOLF WITH MR WATANABE IN A WINTER STORM THE 66YEAROLD MR NAKAJIMA SUFFERED A STROKE DAYS LATER HE WAS DEAD THE FUNERAL WAS A KIND OF PREDATORS' WAKE MOURNERS INCLUDED MORE THAN A DOZEN OF THE NATION'S MOST FLAMBOYANT SPECULATORS BY YEAR'S END MANY WERE STRUGGLING AS THE BANK OF JAPAN RAISED INTEREST RATES SQUEEZING ASSET INFLATION MEANWHILE THE FINANCE MINISTRY IMPOSED STIFFER CONTROLS ON REALESTATE LENDING MR WATANABE WAS AMONG THE FIRST TO FEEL THE PAIN AN ILLCONCEIVED EFFORT TO PROFIT ON THE STOCK OF A TOYOTA MOTOR CORP SUPPLIER A MOVE THAT EVENTUALLY DREW IN TEXAS FINANCIER T BOONE PICKENS BACKFIRED WHEN STOCK PRICES TUMBLED COSTING MR WATANABE'S COMPANIES MILLIONS SOON AFTER THE PROPERTY MARKET BEGAN ITS FALL IN MID1991 AZABU STOPPED PAYING INTEREST ON ITS DEBT IN FEBRUARY 1992 MITSUI TRUST DEMANDED THAT MR WATANABE RESIGN AS PRESIDENT OF AZABU BUILDING DISPATCHING ITS TEAM TO TAKE CONTROL NOW BACK IN MR WATANABE'S HANDS AZABU HAS FEW SALABLE PROPERTIES IN TOKYO WHERE MOST OF ITS HOLDINGS ARE EITHER IN ODD SHAPES AND SIZES OR ARE MUSHI KUI BUG EATEN MEANING THEY ARE DOTTED WITH INDIVIDUAL TENANTS YET TO BE BOUGHT OUT STILL AZABU MAY BE TOO BIG TO FAIL MITSUI TRUST STRUGGLING TO RESCUE DOZENS OF OTHER BATTERED PROPERTY CONCERNS WOULD BE DEVASTATED BY AZABU'S COLLAPSE SOME ANALYSTS THINK THE BANK ULTIMATELY WILL NEED HELP FROM JAPAN'S CENTRAL BANK OR FROM OTHER COMPANIES IN THE MITSUI INDUSTRIAL GROUP AND MR WATANABE AS HIS EMPIRE BURNS HE CAN BE SEEN LEADING THE GOOD LIFE FOR HIS ELDEST DAUGHTER'S WEDDING HE RECENTLY RENTED A HUGE HALL IN TOKYO'S MOST EXPENSIVE HOTEL CATERERS SAY THE GALA AFFAIR INCLUDED A 20FOOTHIGH WEDDING CAKE AN ITALIAN TENOR SINGING LOVE IS A MANY SPLENDORED THING AND A FEAST THAT BROUGHT THE TAB TO 250000 9307290085 930729 PANEL APPROVES BILL AIMED AT UNCOVERING BIAS BY BIG INSURERS WASHINGTON A HOUSE CONSUMER SUBCOMMITTEE APPROVED A WATEREDDOWN VERSION OF LEGISLATION DESIGNED TO FORCE NEW DISCLOSURE BY INSURANCE COMPANIES THE BILL WOULD REQUIRE LARGE INSURERS IN 25 MAJOR CITIES TO PINPOINT HOW MUCH HOME AND AUTO INSURANCE THEY WRITE BROKEN DOWN BY POSTAL ZIP CODES THEY ALSO WOULD HAVE TO SHOW HOW MANY AGENTS THEY HAVE AND POLICY CANCELLATIONS AND RENEWAL REJECTIONS BY ZIP CODE THE DATA WOULD BE USED TO HELP SHOW WHETHER INSURERS ARE DISCRIMINATING AGAINST LOWINCOME MINORITY PEOPLE AS THEIR CRITICS CONTEND BUT THE SUBCOMMITTEE'S MODIFICATIONS TO THE BILL WERE SO EXTENSIVE THAT THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW A HOMEOWNERS GROUP CALLED THE RESULT SHAM PROTECTION FOR MINORITIES THAT IS VIRTUALLY WORTHLESS THE CHANGES WERE CONTAINED IN A PACKAGE OF AMENDMENTS OFFERED BY REP JIM SLATTERY D KAN SPECIFICALLY THE PANEL DROPPED NARROWLY FOCUSED CENSUSTRACT REPORTING IN FAVOR OF LESSSPECIFIC ZIP CODES AND IT DROPPED PROPOSALS TO COLLECT DATA FROM INSURANCE COMPANIES ON THEIR TREATMENT OF MINORITYOWNED SMALL BUSINESSES AS WELL AS INSURERS' LOSSES AND THE RACE OF THEIR CUSTOMERS ALSO THE NUMBER OF CITIES TO BE COVERED BY THE BILL WAS TRIMMED FROM 150 THE AMENDED BILL IS A VAST IMPROVEMENT FROM THE ORIGINAL SAID JULIE ROCHMAN A SPOKESWOMAN FOR THE ALLIANCE OF AMERICAN INSURERS ONE OF THE INSURANCE TRADE GROUPS THAT LOBBIED HEAVILY FOR THE AMENDMENTS BUT THE INDUSTRY STILL OPPOSES ANY SUCH LEGISLATION CONTENDING THAT STATES HAVE PLENTY OF DATA NOW AND NOTING THAT LAWS BAN INSURANCE DISCRIMINATION 9307290084 930729 FOREIGN EXCHANGE DOLLAR BATTERED BY PROFIT TAKING SLIPS AS INVESTORS PILE ON DEMAND FOR THE YEN BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SLIPPED WEDNESDAY BATTERED BY INVESTORS CASHING IN ON THE CURRENCY'S RECENT GAINS AHEAD OF THURSDAY'S BUNDESBANK MEETING AND BY STEADY DEMAND FOR THE YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17175 MARKS DOWN FROM 17278 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10580 YEN OFF FROM 10608 YEN STERLING WAS TRADING AT 14965 UP FROM 14887 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10604 YEN AND AT 17169 MARKS PEOPLE WERE JUST SQUARING UP BEFORE THE MEETING TOMORROW SAID LYNN TIERNEY A VICE PRESIDENT AT SHAWMUT BANK OF BOSTON THE BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL IS TO MEET THURSDAY AND THE MARKET IS EXPECTING AN EASING OF THE KEY DISCOUNT RATE TRADERS SAID WITHOUT A CUT DEALERS SAID PRESSURES WITHIN THE EXCHANGE RATE MECHANISM OR ERM OF THE EUROPEAN MONETARY SYSTEM ARE LIKELY TO EXPLODE SHATTERING THE CURRENCY GRID THE DOLLAR HAS GAINED AS EXPECTATIONS OF SOME KIND OF A CUT HAVE GROWN IN RECENT DAYS BY WEDNESDAY SOME PLAYERS DECIDING THE MARKET ALREADY HAD DISCOUNTED THE LIKELY CUT TOOK THE OPPORTUNITY TO LOCK IN PROFITS ON THE DOLLAR'S RISE A HALFPOINT CUT IS ALMOST DISCOUNTED SAID MS TIERNEY CURRENTLY THE DISCOUNT RATE IS 675 WITH THE IMMEDIATE OUTLOOK FOR THE DOLLAR AND MOST EUROPEAN CURRENCIES STILL CLOUDED TRADERS SAID MANY INVESTORS TURNED AGAIN TO THE YEN LOOKING FOR FURTHER GAINS IN ADDITION TO THIS DEMAND TRADERS SAID JAPANESE EXPORTERS HAVE BEEN STEADY BUYERS OF YEN UNLOADING THEIR DOLLAR EARNINGS NOW IN ANTICIPATION THE YEN'S RECENT GAINS WILL CONTINUE THERE IS ACTUAL DEMAND TO SELL FROM JAPANESE CORPORATE CUSTOMERS BEFORE SUMMER VACATION SAID NORI KATO A VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN LTD HE SAID THAT MANY OF THESE PARTICIPANTS PULL OUT OF THE MARKET IN AUGUST BACKED BY THIS BUYING COMBINED WITH MORE SPECULATIVE DEMAND THE YEN ADVANCED STEADILY AGAINST THE DOLLAR WEDNESDAY NEAR POSTWORLD WAR II LOW ONCE TECHNICAL SUPPORT AROUND 105 YEN GAVE WAY THE DOLLAR DROPPED FALLING TO INTRADAY LOWS JUST ABOVE THE POSTWORLD WAR II RECORD OF 10482 YEN SET JUNE 15 BUT WHEN THE DOWNTREND FAILED TO PICK UP STEAM TRADERS SAID PLAYERS SCRAMBLED TO BUY DOLLARS TO COVER EARLIR BETS THAT THE DOLLAR WOULD FALL FURTHER WITHIN LESS THAN 15 MINUTES OF TOUCHING THE INTRADAY LOW OF 10485 YEN THE DOLLAR SURGED MORE THAN A YEN ALTHOUGH TRADERS SAID THERE WEREN'T ANY CLEAR SIGNS OF CENTRALBANK INTERVENTION TO SUPPORT THE DOLLAR WIDESPREAD RUMORS THAT JAPAN'S SEMIGOVERNMENTAL POSTAL SAVINGS INSTITUTIONS HAD STEPPED IN AS BUYERS ADDED IMPETUS TO THE REBOUND AGAINST THE MARK THE DOLLAR MOVED MORE NARROWLY WEDNESDAY WOBBLING AS THE MARKET DIGESTED A SUCCESSION OF MONETARY SIGNS FROM THE BUNDESBANK TRADERS SAID WEDNESDAY THE CENTRAL BANK LOWERED A KEY MONEYMARKET INTEREST RATE KNOWN AS THE REPO RATE TAKING SOME OF THE PRESSURE OFF THE ERM BUT PARTICIPANTS SAID THE MARKET STILL IS CONCERNED THAT THE BUNDESBANK WILL KEEP THE MONETARY REINS TIGHT FOR FEAR OF FUELING INFLATION IN GERMANY 9307290083 930729 WORLD MARKETS TOKYO STOCKS RETREAT IN STIFLED DEALINGS PRICES RISE IN LONDON DESPITE PROFITTAKING PRESSURE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS RETREATED WEDNESDAY IN DEALINGS THAT WERE STIFLED BY A LACK OF FRESH INCENTIVES AND JAPAN'S ATTEMPTS TO INSTALL A NEW GOVERNMENT LONDON SHARES ROSE BUT ENDED WELL BELOW THE DAY'S HIGHS ON PROFITTAKING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10721 UP 011 REFLECTING INCREASES IN EUROPEAN AND ASIA/PACIFIC MARKETS AND A DROP IN MARKETS IN THE AMERICAS DRUG RETAILERS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9280 UP 303 OR 34 WITH MEDCO CONTAINMENT SERVICES OF THE US POSTING A 15 GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT 9927 DOWN 200 OR 2 WITH SEMBAWANG SHIPYARD OF SINGAPORE SLIDING 52 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 6931 POINTS TUESDAY LOST 6181 TO 1982958 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 180 MILLION SHARES DOWN FROM 2004 MILLION SHARES THE PREVIOUS DAY LOSERS OUTNUMBERED GAINERS 513432 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 990 POINTS TUESDAY FELL 317 TO 162228 IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 6931 POINTS TUESDAY LOST 6181 TO 1982958 ON THURSDAY THE NIKKEI JUMPED 23033 POINTS TO CLOSE THE MORNING SESSION AT 2005991 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 180 MILLION SHARES DOWN FROM 2004 MILLION SHARES THE PREVIOUS DAY LOSERS OUTNUMBERED GAINERS 513432 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 990 POINTS TUESDAY FELL 317 TO 162228 INVESTORS' HOPES THAT JAPAN'S RULING LIBERAL DEMOCRATIC PARTY WOULD BE ABLE TO RETAIN POWER IN THE NEXT GOVERNMENT ALL BUT EVAPORATED AS TWO SWING CONSERVATIVE PARTIES JOINED WITH THE OPPOSITION BUT THE MARKET REMAINED LARGELY UNMOVED WITH ATTENTION FOCUSING ON POTENTIAL POLICIES OF A NEW COALITION GOVERNMENT PARTICIPATION BY INSTITUTIONAL INVESTORS REMAINED LIMITED THE MARKET WAS SUPPORTED LARGELY BY INDIVIDUAL INVESTORS EXPECTATIONS FOR A CUT IN JAPAN'S DISCOUNT RATE AND A POSSIBLE CUT IN INCOME TAXES CONTINUED TO SUPPORT SHARES IN SECTORS THAT WOULD BENEFIT FROM SUCH MOVES IF THE BUNDESBANK GERMANY'S CENTRAL BANK CUTS RATES TODAY THIS COULD REIGNITE HOPES IN TOKYO FOR A CUT IN JAPANESE RATES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED UP 480 POINTS TO 28842 THE FT 30STOCK INDEX ADDED 04 POINT TO 22777 VOLUME WAS 690 MILLION SHARES COMPARED WITH 6625 MILLION SHARES A DAY EARLIER SPECULATION ABOUT A GERMAN INTERESTRATE CUT WHICH INTENSIFIED AMID THE BUNDESBANK'S MONEYMARKET OPERATIONS YESTERDAY CONTINUED TO DOMINATE TRADING FUELING A RALLY THAT BEGAN LAST WEEK AT ONE POINT THE FTSE 100 WAS UP AS MUCH AS 163 POINTS BUT BY MIDAFTERNOON INVESTORS BECAME WARY THAT OPTIMISM ABOUT A GERMAN RATE REDUCTION HAD GONE TOO FAR AND SOME BEGAN TO TAKE PROFITS EARLY WEAKNESS ON WALL STREET CONTRIBUTED TO THE BEARISHNESS THAT SURFACED IN FRANKFURT STOCKS FELL IN SLOW TRADING THE DAX 30STOCK INDEX DROPPED 1132 POINTS TO 183391 ITS LOW FOR THE DAY INVESTORS WERE NERVOUS ABOUT THE SIZE OF ANY BUNDESBANK RATE CUT AND INITIAL ENTHUSIASM ABOUT AN EASING IN THE OVERNIGHT MONEY RATE DURING THE BUNDESBANK'S MORNING SECURITIES REPURCHASE OPERATIONS WORE OFF BY THE AFTERNOON ELSEWHERE IN EUROPE MANY BOURSES HAD MIXED SHOWINGS AS INVESTORS AWAITED THE OUTCOME OF TODAY'S BUNDESBANK MEETING IN PARIS PRICES DRIFTED LOWER FOR THE SECOND STRAIGHT DAY WITH MANY INVESTORS ON THE SIDELINES IN MILAN PRICES FIRMED IN THIN AND VOLATILE TRADING RECOVERING FROM EARLY LOWS IN REACTION TO CAR BOMB EXPLOSIONS IN ROME AND MILAN THE PREVIOUS NIGHT IN MADRID STOCKS GAINED IN HEAVY TRADING AS THE SPANISH PESETA WEAKENED ON FOREIGNEXCHANGE MARKETS THE ADVANCE WAS LED BY BANKS WHICH WOULD BE AMONG THE BIGGEST BENEFICIARIES OF ANY CUTS IN SPANISH INTEREST RATES THAT COULD FOLLOW THE PESETA'S DEPRECIATION STOCKHOLM ISSUES ROSE ACROSS THE BOARD MARKING A HIGH FOR THE YEAR AS PARTICIPANTS ANTICIPATED LOWER SWEDISH AND EUROPEAN INTEREST RATES PRICES ALSO WERE HELPED BY A STRONGER DOLLAR IN ZURICH EQUITIES CLIMBED IN ACTIVE TRADING LED BY CONTINUED STRONG INTEREST IN THE BANKING SECTOR IN SYDNEY STOCKS ROSE IN MOST SECTORS BUT MANY INVESTORS WERE WAITING FOR THE AUSTRALIAN GOVERNMENT TO CUT INTEREST RATES IN SINGAPORE PRICES FELL ON NERVOUS SELLING OF BLUE CHIPS TAIPEI STOCKS FELL IN A CONTINUING CONSOLIDATION AFTER LAST WEEK'S STRONG GAINS HONG KONG SHARES REBOUNDED FROM EARLY WEAKNESS FOLLOWING THE FUTURES MARKET HIGHER TO END WITH SOLID GAINS MARKING THE THIRD STRAIGHT RISE WELLINGTON SHARES SOARED SETTING A NEW 1993 CLOSING HIGH FOR THE SECOND DAY IN A ROW AMONG CORPORATE DEVELOPMENTS IN LONDON BA T INDUSTRIES FELL 4 PENCE TO 4455 PENCE 663 THE TOBACCO AND FINANCIAL SERVICES COMPANY'S SECONDQUARTER PRETAX PROFIT ROSE 33 TO 550 MILLION 8187 MILLION FROM A YEAR EARLIER THE RESULTS WHICH REFLECTED A 135 MILLION GAIN ON A SWAP OF TOBACCO BRANDS WERE AT THE TOP END OF ANALYSTS' EXPECTATIONS BUT THE STOCK CAME UNDER PRESSURE BECAUSE THE COMPANY SAID IT WOULD JOIN THE US CIGARETTE PRICE WAR BRITISH TELECOMMUNICATIONS EASED 15 TO 4175 THE TELECOMMUNICATIONS GROUP'S PRETAX PROFIT FOR ITS FIRST QUARTER ENDED JUNE 30 ROSE 3 TO 757 MILLION AS A RESULT OF HIGHER VOLUME ON TELEPHONE CALLS AND COST CONTROL MEASURES THE YEAREARLIER RESULTS WERE ADJUSTED TO EXCLUDE SPECIAL RESTRUCTURING COSTS THE INCREASE IN PRETAX PROFIT WAS 27 BEFORE THE ADJUSTMENT IN BRUSSELS SOLVAY FELL 25 BELGIAN FRANCS TO 12050 FRANCS 33697 THE CHEMICAL MAKER REPORTED AFTER THE CLOSE OF TRADING THAT IT HAD A FIRSTHALF NET LOSS OF 572 BILLION FRANCS 160 MILLION COMPARED WITH YEAREARLIER PROFIT OF 588 BILLION FRANCS 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 9307290082 930729 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT GULF STATES UTILITIES CO A 290 MILLION TWOPART ISSUE WAS PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 170 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2001 WAS PRICED AT PAR TO YIELD 641 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE COMPARABLE TREASURY ISSUES THE SECOND TRANCHE 120 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2005 WAS PRICED AT PAR TO YIELD 677 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 87 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP CHINA INTERNATIONAL TRUST & INVESTMENT CORP 250 MILLION OF BONDS DUE AUG 1 2003 WERE PRICED WITH A 6 7/8 COUPON AT 99706 TO YIELD 6916 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE COMPARABLE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF DEBENTURES DUE AUG 4 1995 WERE PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES WERE PRICED AT PAR AND WILL FLOAT WEEKLY AT 20 BASIS POINTS OVER THE THREEMONTH TREASURY BILL FOR THE FIRST YEAR THEREAFTER THE INTEREST RATE IS FIXED AT 4625 BEAR STEARNS COS 200 MILLION OF NOTES DUE AUG 1 2003 WERE PRICED WITH A 67 COUPON AT 99511 TO YIELD 6768 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 88 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO FIRST COLONY CORP 175 MILLION OF SENIOR NOTES DUE AUG 1 2003 WERE PRICED WITH A 6 5/8 COUPON AT 9989 TO YIELD 664 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP MONSANTO CO 150 MILLION OF NOTES DUE JULY 1 2000 WAS PRICED AT PAR TO YIELD 6 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ARKANSAS POWER & LIGHT CO 115 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2005 WERE WON IN COMPEITIVE BIDDING BY A GROUP OF DEALERS LED BY KIDDER PEABODY & CO THEY WERE REOFFERED WITH A 665 COUPON AT 98443 TO YIELD 6842 ACCORDING TO MCM CORPORATEWATCH THE BONDS NOT CALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 92 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P ARKANSAS POWER & LIGHT IS A UNIT OF ENTERGY CORP ADT LTD AN OFFERING OF 18 MILLION COMMON SHARES WAS PRICED AT 8 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP AND MERRILL LYNCH ATMEL CORP AN OFFERING OF TWO MILLION COMMON SHARES WAS PRICED AT 25625 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS FAIRFAX COUNTY VA 254 MILLION SERIES 1993C PUBLIC IMPROVEMENT REFUNDING BONDS WERE APPARENTLY WON BY A LEHMAN BROTHERS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT APPROXIMATELY 5146 YIELDS RANGE FROM 265 IN 1994 TO 550 IN 2011 AND 2012 BOTH MOODY'S AND S&P RATED THE ISSUE TRIPLEA CENTRAL VALLEY FINANCING AUTHORITY CALIFORNIA 144 MILLION 1993 SERIES COGENERATION PROJECT REVENUE BONDS WERE PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 510 IN 1998 TO 632 IN 2020 THE OFFERING WAS RATED TRIPLEBMINUS BY BOTH S&P AND FITCH INVESTORS SERVICE INC ORLANDO UTILITIES COMMISSION FLA 1393 MILLION SERIES 1993B WATER AND ELECTRIC SUBORDINATED REVENUE BONDS WERE PRICED BY A LEHMAN BROTHERS GROUP TO YIELD FROM 415 IN 1997 TO 577 IN 2023 MOODY'S RATED THE ISSUE DOUBLEA AND S&P ASSIGNED IT A DOUBLEAMINUS RATING FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1578 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY UNION BANK OF SURETY THE OFFERING SERIES 1579 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES KEIHIN ELECTRIC EXPRESS RAILWAY CO JAPAN 250 MILLION OF 1 5/8 EUROBONDS WITH EQUITYWARRANTS DUE AUG 19 1997 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD WARRANTS EXERCISEABLE FROM SEPT 2 1993 TO AUG 12 1997 TO PURCHASE ORDINARY SHARES IN COMPANY TERMS FIXED AUG 4 INDICATED PREMIUM 2 1/2 FEES 2 1/4 LESS 020 FOR LEAD MANAGER GOTA BANK SWEDEN 100 MILLION OF SUBORDINATED FLOATINGRATE EURONOTES DUE SEPTEMBER 2001 AT ISSUE PRICE PAR VIA CHEMICAL INVESTMENT BANK LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE LIBOR PLUS 110 BASIS POINTS FOR FIRST THREE YEARS THEREAFTER AT LIBOR PLUS 300 BASIS POINTS BONDS CALLABLE FROM SEPTEMBER 1996 AT PAR FEES UNDISCLOSED MAZDA MOTOR CORP JAPAN 20 BILLION YEN OF 51 EUROBONDS DUE AUG 11 2000 AT ISSUE PRICE 10145 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 99925 TO YIELD 511 FEES 1 7/8 MAZDA MOTOR CORP JAPAN 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE MAY 11 2000 AT PAR VIA SUMITOMO FINANCE INTERNATIONAL PLC INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR FOR YEN PLUS 325 BASIS POINTS FEES 1/4 MITSUI & CO JAPAN 10 BILLION YEN OF 49 EUROBONDS DUE NOV 9 2000 AT ISSUE PRICE 101725 VIA FUJI INTERNATIONAL FINANCE PLC REOFFERED AT 10020 TO YIELD 4863 FEES 1 7/8 SUDWESTDEUTSCHE LANDESBANK LONDON CAPITAL MARKETS PLC GERMANY PARENT 200 MILLION CANADIAN OF 6 1/2 EUROBONDS DUE AUG 26 1997 AT ISSUE PRICE 10115 VIA LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 9975 TO YIELD 657 A SPREAD OF 28 BASIS POINTS OVER INTERPOLATED THREE TO FIVEYEAR CANADIAN GOVERNMENT BOND CURVE GUARANTOR SUDWESTDEUTSCHE LANDESBANK GIROZENTRALE FEES 1 5/8 9307290081 930729 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE DEMOCRATIC LEADERS PUSH GAS TAX BOOST RISE OF 65 CENTS A GALLON WOULD BE PART OF PLAN TO CUT BUDGET DEFICIT BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATIC CONGRESSIONAL LEADERS ARE PUSHING A GASOLINE TAX INCREASE OF 65 CENTS A GALLON HOPING TO FILL IN THE LAST BIG BLANK IN THEIR VERSION OF PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM THE HOUSE AND SENATE LEADERS WANT TO REACH AGREEMENT AS EARLY AS TODAY ON AN ECONOMIC PACKAGE AND PUT IT TO FINAL VOTES NEXT WEEK BUT THE GASOLINE TAX INCREASE CONGRESS'S EMERGING ALTERNATIVE TO MR CLINTON'S ORIGINAL BROADBASED ENERGY TAX HAS BEEN ELUSIVE GIVEN THE OPPOSITION OF SOME RANKANDFILE LAWMAKERS THE INITIAL REACTION WASN'T GOOD SEN MAX BAUCUS D MONT A SWING VOTE ON THE TAX BILL CONFERENCE SAID LAST NIGHT THAT A 65CENT INCREASE WAS JUST TOO HIGH THE TAX NEGOTIATORS ARE TO MEET THIS MORNING THE REMAINING QUESTION IS ENERGY AND THAT'S WHAT WE ALWAYS ASSUMED WOULD BE THE REMAINING QUESTION SAID SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY THE SENATE'S CHIEF NEGOTIATOR AS HE LEFT A CLOSEDDOOR BARGAINING SESSION YESTERDAY WITH CHAIRMAN DAN ROSTENKOWSKI D ILL OF THE HOUSE WAYS AND MEANS COMMITTEE THE TWO CHAIRMEN DICKERED OVER OTHER TAX ISSUES AS THEY NEARED A COMPROMISE OF SEPARATE HOUSE AND SENATE BILLS THEY TENTATIVELY AGREED TO A PROVISION CREATING A UNIFORM WRITEOFF FOR SOCALLED INTANGIBLE ASSETS ACQUIRED IN BUSINESS TAKEOVERS IT WOULD ALLOW THE FULL WORTH OF SUCH ASSETS WHICH INCLUDE CUSTOMER LISTS AND THE VALUE OF GOODWILL THAT'S REPRESENTED BY A COMPANY'S REPUTATION TO BE AMORTIZED OVER 15 YEARS THE CURRENT TAX TREATMENT OF SUCH ASSETS IS IN DISPUTE AND GOODWILL CAN'T BE WRITTEN OFF AT ALL AT THE WHITE HOUSE AND LATER ON CAPITOL HILL MR CLINTON MET WITH GROUPS OF LAWMAKERS INCLUDING FRESHMAN HOUSE DEMOCRATS GENERALLY A FISCALLY CONSERVATIVE BUNCH AND AMBIVALENT SENATORS AMONG THEM DEMOCRATIC SENS BOB KERREY OF NEBRASKA AND HERBERT KOHL OF WISCONSIN AND HE'S BEGUN WIELDING A NEW TOOL TO COURT WAVERERS THE PROSPECT THAT HE'LL ISSUE EXECUTIVE ORDERS IMPLEMENTING THEIR PET PROPOSALS THAT DON'T MAKE THE FINAL COMPROMISE TUESDAY NIGHT FOR EXAMPLE HE TOLD CONSERVATIVE HOUSE DEMOCRATS HE MAY ISSUE SUCH AN ORDER REQUIRING THE WHITE HOUSE TO FORMALLY ALERT CONGRESS WHEN SPENDING ON BENEFIT PROGRAMS EXCEEDS EXPECTATIONS MOREOVER SEN DENNIS DECONCINI WHO OPPOSED THE SENATE PACKAGE SAID THE PRESIDENT MIGHT ISSUE AN ORDER REFLECTING THE ARIZONA DEMOCRAT'S IDEA THAT HIGHER TAXES SHOULD GO INTO A DEFICITREDUCTION TRUST FUND EVEN SO AFTER A WHITE HOUSE MEETING YESTERDAY MR DECONCINI SAID I DIDN'T LEAVE THE PRESIDENT ANY GREAT ENCOURAGEMENT ABOUT SUPPORTING THE FINAL COMPROMISE THE PRESIDENT URGED CONGRESS TO APPROVE A DEFICITREDUCTION PLAN THE FUEL TAX THAT'S IN THERE NOW IS MODEST IT WILL NOT PROMOTE A GREAT DEAL OF ENERGY CONSERVATION IT HAS VERY LITTLE ENVIRONMENTAL SIGNIFICANCE HE SAID BUT HE ADDED THE LEVY IS NECESSARY FOR A PACKAGE THAT REDUCES THE DEFICIT BY 500 BILLION OVER FIVE YEARS WHILE ALLOWING SOME COSTLY TAX INCENTIVES FOR BUSINESSES AND POOR WORKERS MR CLINTON HAD EMBRACED AN INCREASE IN THE CURRENT 141CENT FEDERAL GASOLINE TAX AN IDEA HE CAMPAIGNED AGAINST LAST YEAR AFTER THE SENATE KILLED HIS ENERGY TAX LAST MONTH HIS LEVY WOULD HAVE RAISED ABOUT 22 BILLION A YEAR WHEN FULLY PHASED IN AS MUCH AS THE SENATE'S 43CENTS FUELSTAX INCREASE WOULD RAISE IN FIVE YEARS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA AFTER AN EARLIER MEETING WITH HOUSE DEMOCRATS AT WHICH SEVERAL REITERATED THEIR OPPOSITION TO A GASOLINE TAX INCREASE ALSO SAID AN ENERGY TAX IS ESSENTIAL TO ACHIEVE A PACKAGE WITH 500 BILLION IN FIVEYEAR SAVINGS THE ADMINISTRATION PRIVATELY HAS PASSED THE WORD IT WOULD SETTLE FOR 490 BILLION BUT IT INSISTS ON BREAKING THE RECORD FOR DEFICIT REDUCTION SET BY THE 1990 BIPARTISAN BUDGET AGREEMENT THE TOTAL IS CRITICAL TO MANY DEMOCRATS MY MAIN CONCERN IS WHETHER THE DEFICITREDUCTION GOALS ARE GOING TO BE MET SAID FRESHMAN SEN RUSSELL FEINGOLD OF WISCONSIN ABOUT HALF THE PACKAGE IS TAX INCREASES AND MOST OF THOSE WOULD HIT UPPERINCOME INDIVIDUALS AND BUSINESSES A 65CENT FUEL TAX INCREASE WOULD RAISE ABOUT 35 BILLION OVER FIVE YEARS MAKING IT A COMPARATIVELY SMALL SHARE OF THE BILL'S TOTAL TAXES BUT THAT PIECE IS CRITICAL TO HELPING THE DEMOCRATIC BARGAINERS PAY FOR BUSINESS TAX BREAKS REPUBLICANS AREN'T PART OF THE NEGOTIATIONS SINCE NOT A SINGLE ONE SUPPORTED THE HOUSE OR SENATE BILL ALSO TO PLACATE SOME LIBERALS THE NEGOTIATORS ARE CONSIDERING INCREASING AN EXISTING TAX CREDIT FOR POOR WORKERS AT A COST OF ABOUT 20 BILLION EXPANDING FOOD STAMPS BY ABOUT 3 BILLION AND PROVIDING TAX INCENTIVES OF 3 BILLION FOR INVESTMENTS IN DEPRESSED AREAS ALL THOSE AMOUNTS WHICH REPRESENT FIVEYEAR COSTS ARE LESS THAN MR CLINTON AND THE HOUSE PROPOSED BUT MORE THAN THE SENATE VOTED FOR MANY LOWERPROFILE ISSUES HAVE BEEN TENTATIVELY DECIDED ONE THAT HASN'T IS A PROVISION TO BAN WHAT'S KNOWN AS DOUBLE DIPPING BY BUYERS OF FAILED THRIFTS WHICH ALLOWS THEM TO RECEIVE TAXFREE COMPENSATION FOR THEIR LOSSES ON TROUBLED ASSETS AND ALSO TO TAKE A TAX DEDUCTION FOR THOSE LOSSES THE PROVISION BARRING SUCH DEDUCTIONS GOING BACK TO MARCH 4 1991 THE DATE OF A TREASURY WARNING ABOUT THE PRACTICE IS COMMON TO BOTH THE HOUSE AND SENATE BILLS NEVERTHELESS A FEW LAWMAKERS AND LOBBYISTS ARE WORKING TO DELAY THE EFFECTIVE DATE OF THE BAN THUS BENEFITING A FEW INVESTORS AND SOME LARGE FINANCIAL INSTITUTIONS ESPECIALLY IN TEXAS NEGOTIATORS ALSO ARE LIKELY TO INCLUDE IN THE FINAL PACKAGE A HOUSEPASSED PROVISION THAT WOULD PROVIDE A CAPITALGAINS TAX BREAK FOR INVESTORS IN STARTUP COMPANIES BUT THE CONFEREES SEEM INTENT ON MAKING SURE THAT RELIEF ISN'T AVAILABLE TO INVESTORS IN THE SUBSIDIARIES OF LARGE CORPORATIONS TREASURY OFFICIALS ARE RESISTING SUCH RESTRICTIONS BUT THEY APPARENTLY HAVEN'T MADE MUCH HEADWAY AS THE FINAL ACT FOR THE MEASURE APPROACHES THE MOOD AMONG DEMOCRATS IS SOUR THEY DON'T WANT TO VOTE FOR A TAX BILL YET MOST BELIEVE THEY HAVE NO CHOICE POLITICALLY OR ECONOMICALLY THEY WANT TO GET IT OVER WITH YET THE JOSTLING FOR POSITION ON ISSUES LIKE THE ENERGY TAX CONTINUES IF YOU DON'T PUT THIS THING TO REST VERY SOON IT STARTS COMING APART SAID REP BEN CARDIN OF MARYLAND BY TOMORROW IT SHOULD BE PUT TO BED MEANWHILE REPUBLICANS KEEP TRYING TO EXPLOIT CONTROVERSY OVER MR ROSTENKOWSKI'S LEGAL TROUBLES AND SPEAKER THOMAS FOLEY'S STOCK TRANSACTIONS TO KEEP PRESSURE ON DEMOCRATIC LEADERS YESTERDAY HOUSE GOP WHIP NEWT GINGRICH SAID THE ETHICS COMMITTEE SHOULD INVESTIGATE MR FOLEY IF HE WON'T TAKE THE HOUSE FLOOR TO EXPLAIN HIS FINANCIAL DEALINGS TO MEMBERS GREG HITT CONTRIBUTED TO THIS ARTICLE 9307290080 930729 WHAT'S NEWS WORLDWIDE CLINTON DECIDED TENTATIVELY TO USE AIR ATTACKS TO BREAK THE SIEGE OF SARAJEVO THE US IS WORKING OUT DETAILS OF THE BOSNIA PLAN WITH ITS EUROPEAN ALLIES BUT IT ALREADY HAS RECEIVED STRONG PRELIMINARY SUPPORT FOR THE LIMITED STRIKES BEFORE LAUNCHING ANY MILITARY ACTION WHICH WOULD BE UNDER NATO COMMAND THE ALLIES ARE EXPECTED TO ISSUE A THREAT TO THE BOSNIAN SERBS WHO HAVE LAID SIEGE TO THE CAPITAL FOR MORE THAN A YEAR CLINTON YESTERDAY REITERATED HIS PLEDGE TO USE US AIR POWER TO DEFEND UN PEACEKEEPERS BUT OFFICIALS SAID THE US COMMITMENT WOULD GO BEYOND THAT AND WOULD INCLUDE ACTIONS TO CURTAIL SERB SHELLING AND PROVIDE COVER FOR RELIEF CONVOYS BOSNIAN GOVERNMENT TROOPS SUFFERED SOME OF THEIR WORST LOSSES OF THE SARAJEVO SIEGE WHEN SERBS FORCED THEM OUT OF KEY POSITIONS ON A STRATEGIC MOUNTAIN THE US CRITICIZED ISRAEL FOR ITS ATTACKS IN SOUTHERN LEBANON THE STATE DEPARTMENT ACCUSED ISRAEL OF TARGETING CIVILIANS IN LEBANON AND SAID THE BOMBARDMENT THAT WAS TOUCHED OFF BY GUERRILLA ATTACKS SHOULD STOP AT ONCE IT WAS THE FIRST US CRITICISM OF ISRAEL'S RETALIATORY ASSAULTS THIS WEEK AGAINST HEZBOLLAH GUERRILLAS CLINTON CALLED ON ISRAEL HEZBOLLAH AND OTHERS IN THE MIDEAST TO HELP STOP THE FIGHTING WHICH BEGAN SUNDAY I THINK IT'S NOW TIME FOR ALL THE PLAYERS TO DO MORE TO BRING AN END TO THE FIGHTING HE SAID ABOUT 500000 OF SOUTHERN LEBANON'S 800000 RESIDENTS HAVE FLED THEIR HOMES IN THE PAST FOUR DAYS ACCORDING TO UN AND OFFICIAL LEBANESE ESTIMATES RUSSIA'S RUBLE REFORM PLAN SPARKED FURTHER POLITICAL AND MONETARY CHAOS A RUSSIAN NEWS AGENCY REPORTED THAT LEADERS OF THE SUPREME SOVIET HAD OVERTURNED MOST OF THE CENTRAL BANK'S ORIGINAL DECREE INVALIDATING PRE1993 RUBLE NOTES THE REPORT WAS DISMISSED BY A CENTRAL BANK SPOKESMAN AS DISINFORMATION ST LOUIS RESIDENTS HAULED MORE SANDBAGS TO REINFORCE LEVEE WALLS AS FORECASTERS PREDICTED THAT MISSISSIPPI FLOOD WATERS WOULD REACH A RECORD CREST THERE TUESDAY NEAR ANOTHER MISSOURI CITY JEFFERSON CITY A PROPANE GAS TANK WAS RIPPED FROM ITS BASE BY THE MISSOURI RIVER AND LEAKED FORCING THE EVACUATION OF OVER 800 PEOPLE SEVEN JAPANESE PARTIES ANNOUNCED THEY WOULD SEEK TO FORM A COALITION GOVERNMENT THAT WOULDN'T INCLUDE THE LIBERAL DEMOCRATIC PARTY WHICH LOST ITS PARLIAMENTARY MAJORITY IN RECENT ELECTIONS THE ANTILDP BLOC INCLUDES CONSERVATIVES SOCIALISTS POPULIST PROGRESSIVES AND A BUDDHISTBACKED CENTRIST PARTY THE HOUSE APPROVED PRESIDENT CLINTON'S NATIONALSERVICE PLAN AFTER FIRST TRIMMING THE EDUCATION AID THAT PARTICIPANTS WOULD RECEIVE FOR DOING COMMUNITYSERVICE JOBS THE VOTE ON THE MEASURE WAS 275152 TORNUP NOTES WERE FOUND IN VINCENT FOSTER'S BRIEFCASE IN HIS WHITE HOUSE OFFICE THE DEPUTY WHITE HOUSE COUNSEL DIED OF AN APPARENT SELFINFLICTED GUNSHOT WOUND LAST WEEK WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID THE HANDWRITTEN NOTES WHICH WERE TURNED OVER TO AUTHORITIES SHED SOME LIGHT ON HIS STATE OF MIND HAITI'S SENATE LEADER WAS RECOVERING FROM MINOR GUNSHOT WOUNDS AMID SPECULATION THAT HE WAS ATTACKED BECAUSE OF HIS WILLINGNESS TO QUIT HIS POST IN A TRUCE RESTORING EXILED PRESIDENT ARISTIDE TO POWER SEN DUPITON CLOSELY LINKED TO LEADERS OF THE 1991 COUP THAT OUSTED ARISTIDE WAS SHOT TUESDAY NEAR HIS HOME BY MEN WHO FLED IN A CAR NORTH KOREA HAS TESTED A 600MILERANGE MISSILE CIA DIRECTOR WOOLSEY TOLD A HOUSE PANEL BUT HE SAID TALKS WITH NORTH KOREA COULD LEAD TO EASED US CONCERNS ABOUT PYONGYANG'S NUCLEAR PROGRAM JURY SELECTION BEGAN IN THE LOS ANGELES TRIAL OF TWO BLACK MEN ACCUSED IN THE BEATING OF A WHITE TRUCK DRIVER REGINALD DENNY AT THE START OF LAST YEAR'S RIOTS THE TRIAL IS EXPECTED TO TAKE THREE MONTHS INDIA'S PRIME MINISTER WON A NOCONFIDENCE MOTION IN PARLIAMENT BY A 265251 VOTE RAO 72 IN POWER SINCE JUNE 1991 HAD BEEN UNDER ATTACK FOR HIS ECONOMIC REFORMS AND CORRUPTION CHARGES WHICH HE DENIED THE SENATE VOTED TO BAR AID TO NICARAGUA BECAUSE OF ITS ALLEGED TIES TO INTERNATIONAL TERRORISM THE 7723 VOTE REFLECTED US CONCERN OVER A MAY EXPLOSION IN MANAGUA THAT UNCOVERED A HUGE WEAPONS CACHE 9307290079 930729 BUSINESS BRIEFS IDB COMMUNICATIONS INC RECEIVED FEDERAL COMMUNICATIONS COMMISSION APPROVAL TO ACQUIRE TRT COMMUNICATIONS INC FROM PACIFICORP FOR 45 MILLION IDB COMMON SHARES JACOBS ENGINEERING GROUP INC WAS AWARDED A 10YEAR CONTRACT BY CHEVRON CORP SAN FRANCISCO TO PROVIDE FULL ENVIRONMENTAL SERVICES INCLUDING DESIGN AND CONSTRUCTION WORK TERMS OF THE PACT WEREN'T DISCLOSED HITACHI GE LIGHTING LTD A GENERAL ELECTRIC CO AND HITACHI LTD JOINT VENTURE PLANS TO INTRODUCE 20 USMADE ENERGYEFFICIENT LIGHTBULB PRODUCTS IN JAPAN THIS WEEK NYNEX CORP JOINED A PARTNERSHIP TO PUBLISH TELEPHONE DIRECTORIES IN POLAND FOR THE NATIONAL PHONE COMPANY TELEKOMUNIKACJA POLSKA SA FUTURE NOW INC AGREED TO BUY RIVAL BASICOMPUTER OF AKRON OHIO TERMS WEREN'T DISCLOSED 9307290078 930729 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG LOTUS IS BACK AND THAT MEANS WINDOWS SPREADSHEET USERS HAVE MORE AND BETTER CHOICES OVER THE PAST 18 MONTHS THE CAMBRIDGE MASS COMPANY WHICH POPULARIZED SPREADSHEETS WITH ITS 123 PRODUCT ON OLDER IBMCOMPATIBLE PCS JUST COULDN'T SEEM TO MAKE THE SWITCH TO MODERN COMPUTERS RUNNING MICROSOFT'S WINDOWS GRAPHICAL SOFTWARE SYSTEM LOTUS DEVELOPMENT'S FIRST WINDOWS VERSION OF 123 WAS BOTH LATE AND UNIMPRESSIVE PROVIDING LITTLE COMPETITION FOR MICROSOFT'S EXCEL SPREADSHEET WHICH DOMINATES THE WINDOWS MARKET OR FOR BORLAND INTERNATIONAL'S QUATTRO PRO FOR WINDOWS ANOTHER HIGHQUALITY COMPETITOR BUT LOTUS THIS SUMMER HAS INTRODUCED AN ALLNEW VERSION OF 123 FOR WINDOWS CALLED RELEASE 4 IN DOING SO IT HAS TURNED THE WINDOWS SPREADSHEET MARKET INTO A HORSE RACE THE NEW 123 WHICH COSTS AROUND 300 AT DISCOUNT OR ABOUT 99 IF YOU'RE UPGRADING FROM ANOTHER SPREADSHEET HAS CAUGHT UP WITH ALL OF THE IMPORTANT FEATURES OF ITS COMPETITORS AND INTRODUCED SOME IMPORTANT NEW ONES LOTUS IS ALSO SELLING THE NEW VERSION OF 123 AS PART OF A PACKAGE OF WINDOWS PRODUCTS THAT INCLUDES ITS HIGHLY RATED AMI PRO WORD PROCESSOR CCMAIL ELECTRONICMAIL PACKAGE ORGANIZER DATE BOOK AND FREELANCE GRAPHICS PACKAGE MICROSOFT AND BORLAND ALSO SELL SUCH PACKAGES BUT ALL THE PRODUCTS IN LOTUS'S SMARTSUITE 469 AT DISCOUNT OR 349 AS AN UPGRADE HAVE SIMILAR USER INTERFACES SO LEARNING ITS FULL MENU OF PROGRAMS IS EASIER THE WINDOWS SPREADSHEET MARKET RESEMBLES A GAME OF LEAPFROG WHERE ONE PLAYER INTRODUCES A FEATURE AND THE OTHERS QUICKLY DUPLICATE IT UNTIL NOW LOTUS HAS BEEN MOSTLY PLAYING CATCHUP IN THIS GAME BUT I SUSPECT SOME OF THE NEW FEATURES OF 123 WILL SHOW UP IN REVISED VERSIONS OF EXCEL AND QUATTRO PRO FOR WINDOWS THAT ARE DUE IN THE NEXT FEW MONTHS IN THE NEW 123 LOTUS HAS INCLUDED SOME NICE FEATURES PIONEERED BY MICROSOFT AND BORLAND FROM EXCEL IT HAS TAKEN AUTOMATIC FILLIN THE INTELLIGENCE TO ENTER SAY THE REST OF THE DAYS OF THE WEEK IF THE USER TYPES IN MONDAY FROM QUATTRO PRO IT HAS BORROWED A GREAT METHOD FOR ORGANIZING MULTIPLEPAGE SPREADSHEETS FOR EACH PAGE THERE'S A NOTEBOOKSTYLE TAB YOU CAN NAME THE NEW 123 ALSO HAS SOME INNOVATIONS OF ITS OWN IT'S THE FIRST WINDOWS SPREADSHEET THAT LETS YOU ENTER AND EDIT INFORMATION DIRECTLY IN A CELL RATHER THAN IN A SEPARATE EDIT BAR AT THE TOP OF THE PAGE THAT ELIMINATES THE DISTRACTING PRACTICE OF HAVING TO GLANCE UP TO ENTER DATA AND LOSE YOUR PLACE IN THE BODY OF THE SPREADSHEET LOTUS ALSO HAS INTRODUCED A TERRIFIC VERSION MANAGER WHICH LETS YOU STORE MULTIPLE VALUES FOR A CELL OR A RANGE OF CELLS RIGHT IN THE SAME SPREADSHEET SO YOU CAN MORE EASILY DO WHATIF ANALYSIS SUPPOSE YOU WANT TO COMPARE SALES PROJECTIONS BASED ON SEVERAL ECONOMIC FORECASTS WITH LOTUS'S VERSION MANAGER YOU CAN STORE MULTIPLE SCENARIOS IN ONE SPREADSHEET AND VIEW THEM EACH WITH A CLICK OF THE MOUSE THE PROGRAM WILL ALSO LET YOU ENTER EXPLANATORY COMMENTS FOR EACH POSSIBILITY AND EVEN IDENTIFY WHO IN YOUR COMPANY CAME UP WITH EACH MOREOVER SOME OR ALL OF THE SCENARIOS CAN BE SHARED OVER A COMPUTER NETWORK LOTUS'S VERSION MANAGER BLOWS AWAY SIMILAR FEATURES IN EXCEL AND QUATTRO PRO THE NEW 123 ALSO INCLUDES LOTS OF SMALLER IMPROVEMENTS IN EASE OF USE FOR INSTANCE MENUS AND ICONS CHANGE TO FIT WHATEVER KIND OF DATA FIGURE OR A CHART YOU'RE WORKING ON AT THE MOMENT THE CURSOR EVEN CHANGES TO REFLECT THE PARTICULAR ACTION YOU'RE PERFORMING IT BECOMES A HAND WHEN YOU'RE MOVING A CELL AND A LITTLE CHART WHEN YOU'RE DEFINING AN AREA IN WHICH TO PLACE A CHART DESPITE ALL OF THESE IMPROVEMENTS I THINK 123 AND ALL COMPUTER SPREADSHEETS ARE STILL TOO HARD TO USE THEY ALL ORIGINATE IN AN ACCOUNTANT'S MODEL OF DOING THINGS AND IT CAN REQUIRE LOTS OF STUDY AND PRACTICE FOR UNTRAINED BUSINESSPEOPLE TO TAKE ADVANTAGE OF THEIR MOST USEFUL FEATURES BUT LOTUS HAS A LAUDABLE ALTERNATIVE IT HAS INTRODUCED A SEPARATE PRODUCT CALLED IMPROV 320 AT DISCOUNT OR 199 IF UPGRADING WHICH TAKES A RADICALLY SIMPLER APPROACH TO THE CATEGORY IMPROV DOESN'T HAVE ALL THE POWER OR FEATURES OF THE MAINSTREAM PRODUCTS BUT IT DOES TWO COOL THINGS IT LETS YOU CONSTRUCT FORMULAS USING ENGLISH TERMS AND IT MAKES IT VERY EASY TO SEE YOUR DATA FROM DIFFERENT PERSPECTIVES HERE'S WHAT I MEAN SAY YOU'VE BUILT A SALES TABLE SHOWING SOME GEOGRAPHIC REGIONS DOWN THE LEFT SIDE AND MONTHS ACROSS THE TOP WITH EACH MONTHLY COLUMN FURTHER SUBDIVIDED INTO THE FIGURES FOR EACH OF THREE PRODUCTS IN IMPROV YOU CAN FLIP IT INSTANTLY TO SEE THE DATA PRESENTED IN DIFFERENT WAYS WITH PRODUCTS DOWN THE SIDE AND REGIONS SUBDIVIDED BY MONTHS FOR INSTANCE SUCH AN OPERATION CRUCIAL FOR MODELING A BUSINESS COULD TAKE HOURS IN 123 OR ITS COMPETITORS EVEN BETTER YOU DESIGN THE FORMULAS IN IMPROV USING PLAIN ENGLISH TERMS SUCH AS SALES AND EXPENSES RATHER THAN COLUMN AND ROW CITATIONS LIKE A11 OR KK267 I EXPECT BOTH BORLAND AND MICROSOFT TO TRY TO INCORPORATE INTO THEIR REGULAR SPREADSHEETS SOME OF THE MODELMANIPULATION FEATURES OF IMPROV BUT NOT THE PLAINENGLISH FORMULA SYSTEM WHICH WOULD REQUIRE TEARING UP THEIR PRODUCTS AND REBUILDING THEM WHOEVER IS WILLING TO DO THAT TO COMBINE THE BENEFITS OF IMPROV WITH ALL THE POWER OF A FULLFLEDGED SPREADSHEET WOULD HAVE A HECK OF A PRODUCT 9307290077 930729 MARKETING & MEDIA PHILIP MORRIS RIVALS RESIST RAISING CIGARETTE PRICES NEW YORK PHILIP MORRIS COS' ATTEMPT TO RAISE THE PRICE OF DISCOUNT CIGARETTES IS MEETING RESISTANCE FROM SOME SMALL CIGARETTE MAKERS THAT HAVE DECLINED TO MATCH THE PRICE INCREASES LAST WEEK PHILIP MORRIS MADE PERMANENT ITS PRICE CUTS ON MARLBORO AND OTHER TOP BRANDS AND AT THE SAME TIME BOOSTED THE PRICE OF ITS CHEAPER CIGARETTES BY ABOUT 10 CENTS A PACKAGE AT RETAIL THE NO 2 CIGARETTE MAKER RJR NABISCO HOLDINGS CORP QUICKLY FOLLOWED SUIT YESTERDAY BROWN & WILLIAMSON TOBACCO CO THE US UNIT OF BA T INDUSTRIES LTD SAID IT WOULD MATCH THE PRICING MOVES BUT HELD OUT THE PROSPECT THAT IT WOULD USE DISCOUNT STICKERS IN STORES TO LOWER PRICES TO DEFEND ITS SHARE OF THE DISCOUNT MARKET WE WILL ACT TACTICALLY AT THE RETAIL LEVEL TO PROTECT OUR MARKET SHARE BA T CHIEF EXECUTIVE MARTIN BROUGHTON SAID ANALYSTS AND TOBACCO DISTRIBUTORS SAID THAT TWO OTHER TOBACCO COMPANIES AMERICAN BRANDS INC'S AMERICAN TOBACCO CO UNIT AND LIGGETT GROUP A UNIT OF BROOKE GROUP LTD HAVE DECLINED TO RAISE PRICES ON THEIR CHEAPEST CIGARETTES SO FAR THE COMPANIES COULD NOT BE REACHED FOR COMMENT 9307290076 930729 SIEMENS AG UNIT GETS RAIL CONTRACT FOR LOS ANGELES BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A RAILCAR CONTRACT WHICH WAS AWARDED TO A JAPANESE CONCERN THEN CANCELED AFTER A FUROR ERUPTED BECAUSE THE WINNING BIDDER WAS A JAPANESE COMPANY WAS AWARDED TO A TEAM LED BY A UNIT OF GERMANY'S SIEMENS AG SIEMENS AGREED TO BUILD MORE THAN 92 OF THE CARS UNDER THE 72CAR CONTRACT IN THE US ALSO ON THE WINNING TEAM WERE CLEVELANDBASED TRW INC AAI CORP A UNIT OF NEW YORKBASED UNITED INDUSTRIAL CORP AEROJET GENERAL A UNIT OF GENCORP OF FAIRLAWN OHIO AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S JET PROPULSION LABORATORY THE 205 MILLION METROPOLITAN TRANSIT AUTHORITY AWARD IS FOR CONSTRUCTION OF 72 LIGHTRAIL CARS FOR SOUTHERN CALIFORNIA'S METRO GREEN LINE AND METRO BLUE LINE RAIL SYSTEMS THE AWARD GIVES THE MTA AN OPTION FOR 13 ADDITIONAL CARS A US UNIT OF TOKYOBASED SUMITOMO CORP IN DECEMBER 1991 WAS AWARDED A 121 MILLION CONTRACT TO BUILD 41 OF THE 72 CARS BUT WHEN AMERICA FIRST DEMANDS WERE MADE BY POLITICIANS UNIONS AND CITIZENS HERE THAT AGREEMENT WAS CANCELED IN JANUARY 1992 SUMITOMO IN A JANUARY LETTER TO THE LOS ANGELES COUNTY TRANSPORTATION COMMISSION CLAIMED THE AGENCY BREACHED ITS CONTRACT TO BUY 41 CARS FOR THE METRO GREEN LINE AND THAT ITS SUMITOMO CORP OF AMERICA UNIT WAS ENTITLED TO FULL COMPENSATION IN A NOBID AGREEMENT REACHED IN AUGUST 1992 SUMITOMO WAS AWARDED A CONTRACT TO PRODUCE 15 RAIL CARS WHEN THE MTA DISCOVERED IT WOULD BE UNABLE TO MAKE ITS 1995 OPENING DATE WITHOUT AN IMMEDIATE AGREEMENT FOR SOME OF THE RAIL CARS UNDER THE NEW 72CAR CONTRACT WHICH COMPLETES THE 87CAR TOTAL THAT WILL BE REQUIRED FOR THE RAIL SYSTEM THE LEAD PARTNER IN THE TEAM SIEMENS DUEWAG CORP AGREED TO SUBCONTRACT MORE THAN 20 PERCENT OF THE AWARD TO DISADVANTAGED AND MINORITYOWNED FIRMS MTA OFFICIALS ALSO NOTED THAT THE SIEMENS UNIT AGREED TO LOCATE A MANUFACTURING FACILITY IN AN AREA HIT HARD BY THE APRIL 1992 LOS ANGELES RIOTS SIEMENS' PROMISE TO OPEN A MANUFACTURING FACILITY IN LOS ANGELES COUNTY LIKELY IN LONG BEACH MARKS THE FIRST TIME MODERN LIGHTRAIL CAR SHELLS WOULD BE BUILT IN THE US SUMITOMO TEAMED WITH ROCKWELL INTERNATIONAL CORP OF SEAL BEACH CALIF WAS ONE OF THE UNSUCCESSFUL BIDDERS ON THE NEW CONTRACT OTHER BIDDERS WERE MORRISON KNUDSEN CORP OF BOISE IDAHO AND CALIFORNIABASED DEFENSE CONTRACTORS LOCKHEED CORP AND GENERAL MOTORS CORP'S HUGHES AIRCRAFT UNIT 9307290075 930729 CLINTON SUPPORTERS TENDED TO BE MORE BULLISH IN POLL POLITICAL VIEWS MAKE A BIG DIFFERENCE IN HOW INVESTORS SEE THE STOCK MARKET TODAY A NEW POLL INDICATES QUICK & REILLY A DISCOUNT BROKERAGE HOUSE SURVEYED 500 OF ITS CUSTOMERS BY TELEPHONE JULY 1517 OVERALL 39 WERE BULLISH ON STOCKS AND 22 BEARISH BUT PEOPLE WHO VOTED FOR PRESIDENT CLINTON WERE MUCH MORE LIKELY TO BE BULLS SOME 46 OF CLINTON VOTERS WERE BULLISH COMPARED WITH 36 OF THOSE WHO VOTED FOR PRESIDENT BUSH AND 34 OF THOSE WHO VOTED FOR ROSS PEROT ONLY 13 OF CLINTON VOTERS CALLED THEMSELVES BEARS COMPARED WITH 24 OF BUSH VOTERS AND 28 OF PEROT VOTERS TO NARROW THE FEDERAL DEFICIT 62 OF THE INVESTORS FAVORED RAISING THE GASOLINE TAX EVEN MORE 78 WANTED TO CUT FEDERAL ENTITLEMENT SPENDING PRESIDENT CLINTON'S EFFORTS TO STIMULATE ECONOMIC GROWTH WEREN'T DRAWING ANY RAVES 84 RATED HIM FAIR OR POOR AND 14 RATED HIM EXCELLENT OR GOOD 9307290074 930729 EXHUD OFFICIAL STRAUSS INDICTED IN 1980S SCANDAL WASHINGTON A FEDERAL GRAND JURY HERE INDICTED FORMER HOUSING OFFICIAL JOSEPH STRAUSS ON SIX FELONY COUNTS INVOLVING THE 1980S INFLUENCEPEDDLING SCANDAL AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT THE INDICTMENT CHARGED THAT MR STRAUSS WHO WAS A SPECIAL ASSISTANT TO HUD SECRETARY SAMUEL PIERCE FROM 1981 TO 1983 DEFRAUDED THE GOVERNMENT BY RECEIVING ILLEGAL PAYMENTS OF MORE THAN 50000 FROM A DEVELOPER AND A CONSULTANT IN RETURN FOR AGREEING TO TAKE OFFICIAL ACTIONS TO HELP AWARD MILLIONS OF DOLLARS OF HUD FUNDING TO A LOWINCOME HOUSING PROJECT IN PUERTO RICO OWNED BY THE DEVELOPER IN ADDITION MR STRAUSS IS ACCUSED OF CONSPIRING WITH THE DEVELOPER AND CONSULTANT TO COVER UP THEIR ACTIONS HE IS ALSO ACCUSED OF COMMITTING PERJURY AND COVERING UP MATERIAL FACTS DURING THE CONGRESSIONAL INVESTIGATION OF HUD IN A STATEMENT MR STRAUSS SAID I MAINTAIN MY INNOCENCE AND I AM CONFIDENT OF ULTIMATE VINDICATION EACH OF THE SIX COUNTS CARRIES A MAXIMUM PENALTY OF FIVE YEARS IN PRISON AND A 250000 FINE ACCORDING TO ARLIN ADAMS THE INDEPENDENT COUNSEL INVESTIGATING THE HUD CASE 9307290073 930729 WHO'S NEWS MCGRAWHILL SELECTS FAMILY MEMBER TO BE FIRM'S NEW PRESIDENT NEW YORK MCGRAWHILL INC NAMED HAROLD MCGRAW III PRESIDENT AND CHIEF OPERATING OFFICER FURTHER SOLIDIFYING HIS POSITION AS HEIR APPARENT TO RUN THE MEDIA AND INFORMATION SERVICES COMPANY FOUNDED BY HIS GREATGRANDFATHER MR MCGRAW 44 YEARS OLD AND KNOWN AS TERRY HAD MOST RECENTLY BEEN EXECUTIVE VICE PRESIDENT OPERATIONS HE ASSUMES HIS NEW POST FROM JOSEPH L DIONNE WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR MCGRAW WILL CONTINUE TO REPORT TO MR DIONNE THE POST OF CHIEF OPERATING OFFICER HAD BEEN UNOCCUPIED MR DIONNE 59 HAS GIVEN NO SIGNAL THAT HE PLANS TO RETIRE BEFORE THE COMPANY'S MANDATORY RETIREMENT AGE OF 65 MR DIONNE SAID YESTERDAY THAT MR MCGRAW HAD SUCCESSFULLY DIRECTED MANY MCGRAWHILL BUSINESSES HE SAID THE COMPANY'S FINANCIALSERVICES OPERATIONS INCLUDING STANDARD & POOR'S CORP DOUBLED ITS OPERATING PROFIT IN THE PAST FIVE YEARS UNDER MR MCGRAW'S LEADERSHIP MR MCGRAW HAS HAD THE RIGHT PEDIGREE FOR CLIMBING THE CORPORATE LADDER HE IS THE GREATGRANDSON OF JAMES H MCGRAW FOUNDER OF MCGRAWHILL AND THE SON OF HAROLD W MCGRAW JR CHAIRMAN EMERITUS HE JOINED MCGRAWHILL IN 1980 AS AN ASSISTANT VICE PRESIDENT AND HAS SINCE WORKED IN CORPORATE PLANNING BEEN PUBLISHER OF AVIATION WEEK & SPACE TECHNOLOGY MAGAZINE AND OVERSEEN TRANSPORTATION AEROSPACE AND DEFENSE INFORMATION PROPERTIES HE HAS ALSO SERVED AS PRESIDENT OF THE MCGRAWHILL PUBLICATIONS UNIT AND ITS FINANCIAL SERVICES IN 1989 HE WAS APPOINTED EXECUTIVE VICE PRESIDENT OPERATIONS FOR HALF OF MCGRAWHILL'S OPERATING UNITS INCLUDING BUSINESS WEEK S&P'S RATING SERVICE TV STATIONS NEWSLETTERS AND ONLINE COMPUTER INFORMATION SERVICES FOR VARYING INDUSTRIES LAST YEAR HE EXTENDED HIS DOMAIN WHEN HE ASSUMED FULL OPERATING RESPONSIBILITY FOR ALL OF MCGRAWHILL'S BUSINESS UNITS INCLUDING THE COLLEGE TEXTBOOK DIVISION PROFESSIONAL REFERENCE BOOKS AND THE COMPUTER MAGAZINE BYTE 9307290072 930729 INTERNATIONAL CLINTON DECIDES ON AIRSTRIKES TO AID SARAJEVO BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION TENTATIVELY HAS DECIDED TO USE LIMITED AIRSTRIKES TO BREAK THE SIEGE OF SARAJEVO ACCORDING TO US OFFICIALS AND DIPLOMATS THE ADMINISTRATION IS WORKING OUT DETAILS OF THE PLAN WITH ITS EUROPEAN ALLIES BUT IT ALREADY HAS RECEIVED STRONG PRELIMINARY SUPPORT FOR THE IDEA BEFORE LAUNCHING ANY MILITARY ACTION THE ALLIES ARE EXPECTED TO ISSUE A THREAT TO THE BOSNIAN SERBS WHO HAVE LAID SIEGE TO THE CAPITAL FOR MORE THAN A YEAR PRESIDENT CLINTON REITERATED HIS PLEDGE TO USE US AIRPOWER TO DEFEND UNITED NATIONS PEACEKEEPERS IN BOSNIA WHO HAVE COME UNDER SERBIAN ATTACK TWICE IN RECENT DAYS BUT OFFICIALS SAID THE US COMMITMENT WOULD GO BEYOND THAT TO PROVIDE COVER FOR HUMANITARIAN RELIEF CONVOYS ATTEMPTING TO DELIVER MEDICINE FOOD AND FUEL TO THE BOSNIAN CAPITAL AND TO CURTAIL SERBIAN SHELLING A SECURITY COUNCIL RESOLUTION APPROVED LAST SUMMER GIVES THE UN THE RIGHT TO USE ALL NECESSARY MEASURES TO DELIVER HUMANITARIAN RELIEF IN BOSNIA US OFFICIALS SAID THAT ANY ACTION WOULD BE TAKEN IN CONCERT WITH ITS NORTH ATLANTIC TREATY ORGANIZATION ALLIES AND WOULD BE UNDER NATO COMMAND THE ADMINISTRATION HASN'T YET DISCUSSED THE PLAN WITH CONGRESS BUT MR CLINTON PROMISED THAT BEFORE ANY MILITARY ACTION IS TAKEN IN BOSNIA HE WOULD HAVE APPROPRIATE CONSULTATIONS WITH CONGRESS AND APPROPRIATE CONVERSATIONS WITH THE AMERICAN PEOPLE WHILE AIRSTRIKES WOULD BE A SIGNIFICANT ESCALATION OF US MILITARY INVOLVEMENT THEY WOULDN'T SHIFT THE MILITARY BALANCE IN FAVOR OF THE BOSNIAN MUSLIMS WHO ALREADY HAVE LOST MOST OF THEIR LAND TO SERBIAN ETHNIC CLEANSING BUT LIFTING THE SIEGE OF SARAJEVO WOULD LESSEN THE DESPERATE SUFFERING OF ITS RESIDENTS AND THE US AND ITS ALLIES HOPE AIRSTRIKES WOULD STRENGTHEN THE MUSLIMLED GOVERNMENT'S HAND IN POLITICAL NEGOTIATIONS TAKING PLACE IN GENEVA PRESIDENT CLINTON HAS MOVED CLOSE TO ORDERING LIMITED MILITARY ACTION IN BOSNIA BEFORE ONLY TO BACK AWAY BECAUSE OF STRONG OPPOSITION FROM THE PENTAGON AND THE EUROPEAN ALLIES BUT THE US PRESIDENT AND HIS TOP ADVISERS HAVE BECOME INCREASINGLY FEARFUL THAT SARAJEVO COULD FALL TO SERBIAN FORCES UNLEASHING WHAT ONE OFFICIAL CALLED THE ULTIMATE HUMANITARIAN NIGHTMARE AND AN AVALANCHE OF BLAME FOR MR CLINTON BOTH SECRETARY OF STATE WARREN CHRISTOPHER AND NATIONAL SECURITY ADVISER ANTHONY LAKE CHAMPIONED THE PLAN EVEN SECURING THE FEW MILES BETWEEN SARAJEVO AND ITS AIRPORT WOULD BE A DEMANDING MILITARY JOB PENTAGON OFFICIALS SAY THE PROBLEM WOULDN'T BE ACTUALLY HOLDING THE ROAD BUT DEALING WITH FIRE FROM SERB MORTARS IN THE SURROUNDING HILLS PENTAGON OFFICIALS SAY THAT TAKING OUT MORTARS ALMOST CERTAINLY WOULD REQUIRE GROUND FORCES UNLIKE HEAVY ARTILLERY MORTARS ARE HIGHLY MOBILE AND EASILY CONCEALED AMONG CIVILIAN POPULATIONS MAKING AIRSTRIKES ESPECIALLY DANGEROUS THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9307290071 930729 FINANCING BUSINESS DOLE FOOD CO DOLE FOOD CO WESTLAKE VILLAGE CALIF SAID IT PLANS TO SELL 400 MILLION OF SENIOR NOTES 225 MILLION WITH A 675 INTEREST RATE DUE THE YEAR 2000 AND 175 MILLION AT 7875 DUE IN 2013 NET PROCEEDS WILL BE USED TO REFINANCE DEBT GOLDMAN SACHS & CO IS LEAD UNDERWRITER DOLE IS A HOLDING COMPANY WITH INTERESTS IN FOOD PRODUCTION AND DISTRIBUTION REALESTATE DEVELOPMENT AND RESORTS 9307290070 930729 MARKETING & MEDIA ADVERTISING THE CLIENTAGENCY RELATIONSHIP GREAT GRIST FOR GROUP THERAPY BY KEVIN GOLDMAN MADISON AVENUE KNOWS ONLY TOO WELL THAT ADVERTISING AGENCIES ARE BEING DISMISSED BY THEIR CLIENTS AT A DIZZYING PACE NOW A STUDY BY MARKET RESEARCHER ROBERT A WACHSLER BLAMES THE PROBLEM ON A MALAISE HE SAYS IS BEST DESCRIBED IN THE MOVIE COOL HAND LUKE WHAT WE HAVE HERE IS A FAILURE TO COMMUNICATE MR WACHSLER A PSYCHOLOGIST WHO HEADS A STRATEGIC MARKETRESEARCH FIRM IN WESTPORT CONN IS THE AUTHOR OF A STUDY COMMISSIONED BY THE ASSOCIATION OF NATIONAL ADVERTISERS A NEW YORKBASED TRADE ORGANIZATION MR WACHSLER'S FINDINGS SUGGEST AGENCIES AND THEIR CLIENTS AGREE ON VIRTUALLY NOTHING INCLUDING SUCH FUNDAMENTAL ISSUES AS GOALS AND EACH OTHER'S STRENGTHS AND WEAKNESSES FOR INSTANCE THE CHALLENGES CITED BY AD AGENCIES AND THEIR CLIENTS TURNED OUT TO BE NOT ONLY VASTLY DIFFERENT BUT OFTEN AT ODDS WITH EACH OTHER ONE COMPANY ASKED WHAT THE BIGGEST PROBLEM IS RESPONDED IDENTIFYING THE MAIN CONSUMER BENEFITS AND KEY SELLING POINTS OF OUR PRODUCT THE AGENCY SAID TOO MANY PEOPLE AT THE CLIENT LEVEL WHO WOULD RATHER PLAY IT SAFE AND NOT TAKE CREATIVE RISKS MR WACHSLER WHOSE CLIENTS INCLUDE SUCH COMPANIES AS GENERAL ELECTRIC BEGAN HIS RESEARCH AFTER OBSERVING SOME OF HIS CLIENTS FIRE THEIR AD AGENCIES THE AGENCIES DIDN'T KNOW WHAT WAS GOING TO HIT THEM SAYS MR WACHSLER SO MR WACHSLER CONTACTED 35 COMPANIES WITH ANNUAL ADVERTISING BUDGETS RANGING FROM 12 MILLION TO HUNDREDS OF MILLIONS OF DOLLARS WITH THE PROMISE OF CONFIDENTIALITY HE ASKED IF HE COULD CONDUCT INTENSIVE QUESTIONING ABOUT THE RELATIONSHIP WITH THEIR AGENCIES HE CHOSE 12 COMPANIES RANGING FROM CONSUMER PRODUCTS AND DURABLE GOODS TO SMALLER ACCOUNTS ONCE THE COMPANIES AGREED TO PARTICIPATE MR WACHSLER HAD THEM CONTACT THEIR AD AGENCIES SAYING IT WAS ALL RIGHT TO SPEAK WITH HIM MR WACHSLER AND THE ANA DECLINED TO SPECIFY THE RESPONDENTS AND SEVERAL AD AGENCIES CONTACTED AT RANDOM ALSO DECLINED TO COMMENT ON THE STUDY MR WACHSLER BEGAN WITH A SIMPLE QUESTION HOW GOOD IS THE RELATIONSHIP ON A SCALE OF ONE TO 10 THE HIGHEST RATING RECEIVED WAS 99 BUT FIVE COMPANIES GAVE THEIR RELATIONSHIP WITH THEIR AD AGENCY A 50 CONSIDERED A MEDIOCRE RATING IN ABOUT HALF OF THE RESPONSES NEITHER THE CLIENT NOR THE AGENCY FELT THEMSELVES TO BE TRUE PARTNERS WITH THE OTHER ONE CLIENT SAID THAT HE EXPECTED THE AGENCY TO BE PARTNERS STRATEGIC THINKERS WHO ASSESS PROBLEMS AND RECOMMEND SOLUTIONSAND TO BE FOCUSED ON OUR BUSINESS RATHER THAN JUST OUR ADVERTISING THAT CLIENT'S AGENCY RESPONDED IN GENERAL THE CLIENT IS MORE INTERESTED IN THE PRODUCT WE PRODUCE AND LESS INTERESTED IN OUR STRATEGY CONTRIBUTIONS THE STUDY SHOWS THAT IN SOME WAYS THE DELICATE AGENCYCLIENT RELATIONSHIP ISN'T UNLIKE A MARRIAGE AND SOME COUNSELING IS NEEDED FEELINGS ARE EASILY HURT IN A VOLATILE CREATIVE ATMOSPHERE SAYS MR WACHSLER FOR EXAMPLE EXECUTIVES FROM ONE COMPANY TELL HOW THEY ARE IRRITATED BECAUSE EVERY TIME THEY MEET WITH THE AD AGENCY THE AGENCY'S ACCOUNT MANAGER NEVER TAKES A SINGLE NOTE THEREFORE THE CLIENT FEELS THE AGENCY IS DELIBERATELY IGNORING ITS WISHES AND ITS SUGGESTIONS WON'T SHOW UP IN SUBSEQUENT ADVERTISING CAMPAIGNS WHEN MR WACHSLER MENTIONED THAT OBSERVATION TO THE AD AGENCY ITS EXECUTIVES WERE CHAGRINED THERE WAS NO HIDDEN MEANING TO THE LACK OF NOTE TAKING HE SAYS AND IN FACT THAT AGENCY PRODUCED ONE COMMERCIAL INCORPORATING ALL THE CLIENT'S RECOMMENDATIONS IF MISPERCEPTIONS AND MISUNDERSTANDINGS CAN BE IDENTIFIED AIRED OUT AND DISCUSSED MR WACHSLER WRITES IN THE 18PAGE STUDY THEY COULD BE SIMPLY AND EASILY CORRECTED HOW MR WACHSLER RECOMMENDS A FORMAT SIMILAR TO THAT OF GENERAL ELECTRIC'S SOCALLED WORKOUT SYSTEM WHICH IS THE 1960S GROUP THERAPY TECHNIQUE EXPANDED TO THE HARDDRIVING NONONSENSE 1990S IN A GE WORKOUT EXECUTIVES GATHER AT A RETREAT AND WITH THE AID OF AN INTERMEDIARY ATTEMPT TO WORK OUT THEIR DIFFERENCES IN AN EXERCISE CALLED CONFLICT RESOLUTION THE PROBLEM OF CONFLICTING MESSAGES BRUISED EGOS AND DIFFERENT GOALS IS HARDLY NEW IN THE AD AGENCY BUSINESS BUT NOTES MR WACHSLER THE SITUATION IS BECOMING INCREASINGLY ACUTE IT USED TO BE THAT THERE WAS A DEEP ALLIANCE BETWEEN AGENCIES AND THEIR CLIENTS IF A CLIENT WANTED A CHANGE IN THE PAST SAYS MR WACHSLER IT DIDN'T FIRE AN AGENCY OUTRIGHT IT DEMANDED A NEW CREATIVE TEAM AT THE AGENCY BE BROUGHT IN NO MORE CLIENTS ARE GETTING EDGIER AND EDGIER SAYS MR WACHSLER THEY ARE DEMANDING SPEED AND THEIR FUSES ARE GETTING SHORTER THAT OF COURSE IS TERRIBLE NEWS FOR BOTH SIDES HE GOES ON AD AGENCIES ARE NERVOUS AND THAT STIFLES CREATIVITY AND COMPANIES ARE FORCED TO DELAY NEW MARKETING PLANS WHEN THEY HAVE TO FIRE ONE AGENCY AND SEARCH FOR ANOTHER DAYS AFTER INTERNATIONAL BUSINESS MACHINES CORP NAMED THE AGENCIES IT WANTS TO PITCH ITS ESTIMATED 20 MILLION PERSONALCOMPUTER ACCOUNT IN THE US ONE OF THEM ABRUPTLY DROPPED OUT YOUNG & RUBICAM OF NEW YORK SAID IT WOULDN'T TAKE PART DECLINING TO EXPLAIN BEYOND NOTING THAT THE MOVE FOLLOWED AN INTERNAL REVIEW OF PRIORITIES AND STRATEGIC OBJECTIVES THE AGENCY TOOK PAINS TO DISTANCE ITSELF FROM THE PITCH ENTIRELY NOTING THAT Y&R OFFICIALS HADN'T MET WITH IBM OR CONSULTANTS WORKING ON THE REVIEW AN IBM SPOKESMAN CONFIRMED THAT WAS THE CASE ADDING THAT IBM OFFICIALS WERE MEETING THE OTHER CONTENDERS THIS WEEK A POTENTIAL CLIENT CONFLICT MAY BE BEHIND THE MOVE INDUSTRY EXECUTIVES SUSPECT Y&R WORKS FOR AMERICAN TELEPHONE & TELEGRAPH WHOSE NCR CORP IS AN IBM COMPETITOR BUT THAT DIDN'T STOP Y&R'S WUNDERMAN CATO JOHNSON UNIT FROM ACCEPTING A MARKETING ASSIGNMENT LAST MONTH FROM PRODIGY SERVICES CO A JOINT VENTURE OF IBM AND SEARS ROEBUCK A Y&R SPOKESMAN DECLINED TO COMMENT ON WHETHER CLIENT CONFLICTS WERE A FACTOR IN ITS WITHDRAWAL FROM THE PC PITCH BEYOND SAYING IT WAS OUR DECISION REVIEW CELESTIAL SEASONINGS INC OF BOULDER COLO SAID IT IS REVIEWING ITS 6 MILLION HERBALTEA ACCOUNT CURRENTLY AT ALLY & GARGANO OF NEW YORK PARTICIPANTS ARE THE PORTLAND ORE SHOPS WIEDEN & KENNEDY AND BORDERS PERRIN & NORRANDER CHICAGO AGENCIES FOOTE CONE & BELDING COMMUNICATIONS AND TATHAM EURO RSCG KARSH & HAGAN OF DENVER JERRY INC OF NEW YORK AND THE INCUMBENT A DECISION IS EXPECTED BY SEPT 1 WHO'S NEWS INTERPUBLIC GROUP'S LINTAS TAPPED CARY LEMKOWITZ 45 AS EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR REPORTING TO TONY DEGREGORIO CHIEF CREATIVE OFFICER OF THE AGENCY'S NEW YORK OFFICE MR LEMKOWITZ HAD BEEN VICE CHAIRMAN AND LED THE CREATIVE SIDE AT THE NEW YORK OFFICE OF EARLE PALMER BROWN MR LEMKOWITZ WILL WORK ON ADVERTISING FOR SUCH PACKAGED GOODS CLIENTS AS UNILEVER AND SARA LEE THE AGENCY SAID NIKE NIKE INC NAMED TERDEMA USSERY II TO THE NEW POSITION OF PRESIDENT OF NIKE SPORTS MANAGEMENT THE UNIT NIKE STARTED LAST YEAR TO MANAGE THE COMMERCIAL AND ATHLETIC CAREERS OF ENDORSERS MR USSERY WHOSE APPOINTMENT TAKES PLACE IN MIDAUGUST IS CURRENTLY COMMISSIONER OF THE CONTINENTAL BASKETBALL ASSOCIATION THE DEVELOPMENTAL LEAGUE FOR THE NATIONAL BASKETBALL ASSOCIATION CAMPBELL CAMPBELL SOUP CO TAPPED CHICAGO AGENCY BAYER BESS VANDERWARKER FOR ITS FRANCOAMERICAN PASTA PRODUCTS LINE INCLUDING THE SPAGHETTIOS BRAND BAYER BESS HAS WORKED ON NEW PROJECTS FOR THE BRAND FOR SEVERAL YEARS BILLINGS COULDN'T BE DETERMINED 9307290069 930729 INTERNATIONAL GOVERNMENT BY COALITION IS SET IN JAPAN MAKESHIFT ALLIANCE UNITED BY ANTILDP VIEWS STILL FACES DIFFICULTIES BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A MAKESHIFT ALLIANCE OF LAWMAKERS AGREED TO FORM A COALITION GOVERNMENT IN JAPAN A MOVE THAT POLITICAL ANALYSTS AND OTHERS SAID MARKS THE END OF AN ERA OF ONEPARTY RULE AND THE START OF A NEW AGE OF POLITICAL PARALYSIS THE CURIOUS CONFEDERATION WHICH SPANS THE IDEOLOGICAL SPECTRUM COULD STILL FALL APART BEFORE A SPECIAL SESSION OF PARLIAMENT CONVENES TO CHOOSE A NEW PRIME MINISTER AND A CABINET THE SESSION IS EXPECTED TO START NEXT WEEK STILL ANALYSTS AND THE JAPANESE PRESS PROCLAIMED THE PACT WHICH WAS REACHED YESTERDAY A TURNING POINT IN THEIR VIEW THE CONSERVATIVE LIBERAL DEMOCRATIC PARTY WHICH LOST ITS PARLIAMENTARY MAJORITY IN ELECTIONS EARLIER THIS MONTH SEEMS DESTINED TO LOSE POWER FOR THE FIRST TIME SINCE 1955 THE ANTILDP GROUP IS NOW CERTAIN TO END THE LDP'S RULE NHK JAPAN'S PUBLIC BROADCASTER SAID ON ITS EVENING NEWS THE SEVENPARTY BLOC INCLUDES TWO CONSERVATIVE GROUPS OF RECENT LDP DEFECTORS SOCIALISTS TWO SOCIALIST SPLINTER PARTIES JAPAN'S FIRST WIDESPREAD POPULIST PROGRESSIVE MOVEMENT AND A CENTRIST PARTY BACKED BY A BUDDHIST SECT THE GROUP'S COMMON BONDS ARE OPPOSITION TO THE LDP AND AN AGREEMENT TO CHANGE JAPAN'S ELECTORAL SYSTEM WHICH IS BLAMED FOR BREEDING POLITICAL CORRUPTION ONCE IN POWER THOUGH THE NEW GOVERNMENT WOULD HAVE TO CONFRONT DIVISIVE POLICY ISSUES MOST NOTABLY HOW TO SPUR JAPAN'S AILING ECONOMY EVEN MANY COALITION LEADERS HAVE SAID THE UNWIELDY GROUP WOULD PROBABLY DISBAND SHORTLY AFTER IT PASSES ITS REFORMS FORCING MORE ELECTIONS AS SOON AS THE END OF THE YEAR MANY JAPANESE WORRY THAT GOVERNMENT BY ALLIANCE IS A RECIPE FOR PARALYSIS OUR BUSINESS HAS BEEN GETTING WORSE SINCE APRIL COMPLAINED MINORU MUROFUSHI PRESIDENT OF ITOCHU CORP ONE OF JAPAN'S LARGEST TRADING COMPANIES PEOPLE ARE TALKING TOO MUCH ABOUT POLITICAL REFORMMORE IMPORTANT IS THE RECOVERY OF THE ECONOMY HE ADDED THE ANTILDP PARTIES STILL ARE NEGOTIATING POLICY POSITIONS AND THEY ALREADY HAVE AGREED TO CONTINUE THE LDP'S BASIC FOREIGN AND DEFENSE POLICIES BUT IT ISN'T CLEAR HOW THEY WOULD RESPOND TO A NEW CRISIS SOME ALLIANCE POLITICIANS FAVOR HAVING JAPANESE TROOPS JOIN UNITED NATIONS PEACEKEEPING OPERATIONS AND OTHERS BELIEVE JAPAN SHOULDN'T EVEN HAVE TROOPS THE PARTIES ARE EXPECTED TO ANNOUNCE OPPOSITION TO OPENING JAPAN'S RICE MARKET TO IMPORTS A MAJOR STUMBLING BLOCK IN WORLD FREETRADE TALKS PEOPLE HAVE TO UNDERSTAND HOW DIFFICULT IT IS FOR THESE VERY DIFFERENT PARTIES TO COME TOGETHER AND RUN THE GOVERNMENT WARNED YOHEI KONO A TOP LDP OFFICIAL AND A CANDIDATE FOR THE PARTY'S PRESIDENCY EVEN IF THE ALLIANCE COULD UNITE ON IMPORTANT ISSUES IT WOULD REMAIN SHAKY WHILE THE SEVEN PARTIES COMBINED HAVE MORE SEATS IN THE LOWER HOUSE OF PARLIAMENT THAN THE LDP AND THUS ENOUGH TO FORM A GOVERNMENT THEIR 245 SEATS STILL FALL SHORT OF THE 256 NEEDED FOR A MAJORITY THEY WOULD THEREFORE HAVE TO WIN THE SUPPORT OF LDP MEMBERS OR INDEPENDENTS TO PASS LEGISLATION THE COALITION COULD CHOOSE ITS LEADER AS SOON AS TODAY ITS TWO MOST LIKELY CANDIDATES ARE FORMER LDP MEMBERS WHO NOW HEAD NEW REFORM PARTIES TSUTOMU HATA 57 YEARS OLD A FORMER FINANCE MINISTER AND MORIHIRO HOSOKAWA 55 A FORMER GOVERNOR OF A SOUTHERN PREFECTURE EVEN IF THE LDP SOMEHOW HOLDS ONTO POWER THE FACT REMAINS THAT THE PARTY HAS LET MATTERS SLIP OUT OF ITS CONTROL ALTHOUGH THE LDP LOST THE JULY 18 ELECTIONS IT DID WELL ENOUGH TO REMAIN THE LARGEST PARTY BY FAR THE BETTING WAS THAT THE LDP WOULD STAY IN POWER EITHER IN COALITION OR AS A RULING MINORITY BUT PARTY ELDERS SEEMED UNABLE TO SHED THEIR BACKROOM POLITICKING AND THEIR RESISTANCE TO REFORMISSUES THAT PROMPTED DOZENS OF LDP LEGISLATORS TO LEAVE THE PARTY A MONTH AGO THE COALITION AGREEMENT WAS SEALED WHEN TWO NONLDP PARTIES SAID THEY GAVE UP HOPES OF FORMING A COALITION WITH THE LDP BECAUSE THE LDP REMAINED VAGUE ON REFORM THREE MORE VETERAN MEMBERS DEFECTED AND SAID THEY WOULD LIKELY SUPPORT THE ANTILDP GROUP MR KONO NOW THE CHIEF CABINET SECRETARY IS SUPPORTED BY THE PARTY'S YOUNGER MEMBERS AND ITS REFORMISTS HE BOLTED THE LDP IN 1976 TO PROTEST THE PARTY'S FAILURE TO CLEAN ITSELF UP AFTER A BRIBERY SCANDAL HE HOPED TO CREATE AN ALTERNATIVE CONSERVATIVE PARTY BUT HIS MOVEMENT FIZZLED AND HE REJOINED THE LDP IN 1986 MR WATANABE KNOWN FOR HIS BLUNT OFFCOLOR REMARKS SERVED AS FOREIGN MINISTER UNTIL ILL HEALTH FORCED HIM TO QUIT EARLIER THIS YEAR THEY ARE VYING TO REPLACE PARTY HEAD KIICHI MIYAZAWA WHO IS ALSO PRIME MINISTER MR MIYAZAWA 73 IS RESIGNING TO TAKE RESPONSIBILITY FOR THE PARTY'S PROBLEMS 9307290068 930729 CREDIT MARKETS CHINESE ISSUER FINDS US INVESTORS EAGER TO BUY YANKEE BONDS AMID HUNGER FOR HIGHER RETURNS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT IS THE BEST OF TIMES FOR FOREIGN ISSUERS IN THE US BOND MARKETS THESE DAYS FOR THE FIRST TIME SINCE 1949 A CHINESE ISSUER CAME TO THE DOMESTIC PUBLIC MARKETS AND INVESTORS PRACTICALLY FELL OVER EACH OTHER TO GIVE THE ISSUE A WARM GREETING US BOND INVESTORS SCRAMBLING FOR JUICY RETURNS DON'T SEEM TO BE CONCERNED ABOUT THE RISKS THEY ARE SHOULDERING FOR RETURNS FROM YANKEE BOND ISSUES THAT ARE IN SOME CASES NOT MUCH BETTER THAN WHAT THEY WOULD FIND IN THE US TREASURY MARKET YANKEE BONDS ARE SOLD BY FOREIGN ISSUERS IN THE US MARKET AND ARE DENOMINATED IN DOLLARS THE 30YEAR TREASURY BOND YIELD DROPPED TO 665 YESTERDAY FROM 668 TUESDAY STATEOWNED CHINA INTERNATIONAL TRUST & INVESTMENT CORP SOLD 250 MILLION OF NONCALLABLE 10YEAR YANKEE BONDS WITH COUPONS OF 6875 AT A PRICE OF 99706 TO YIELD 6916 JUST ONE PERCENTAGE POINT MORE THAN THE YIELD OF THE US TREASURY'S 10YEAR NOTE THE ISSUE WAS INCREASED FROM 150 MILLION IN RESPONSE TO STRONG INVESTOR DEMAND THANKS TO THE HEALTHY DEMAND CHINA INTERNATIONAL WAS ABLE TO GARNER A YIELD SPREAD ABOUT 030 PERCENTAGE POINT LESS THAN HAD BEEN ANTICIPATED BY MONEY MANAGERS AS RECENTLY AS A WEEK AGO MONEY MANAGERS WHO BOUGHT THE NOTES SAID THEY WERE AWARE OF THE SIGNIFICANT POLITICAL RISKS OF INVESTING IN A NATION GOING THROUGH THE PAINFUL PROCESS OF SHIFTING FROM A STATECONTROLLED ECONOMY TO ONE THAT IS MORE MARKETORIENTED BUT THEY SAID THE YIELD WAS TOO ATTRACTIVE TO PASS UP EVERYBODY WAS CLIMBING ALL OVER EACH OTHER TO GET INTO IT SAID GEOFFREY KURINSKY A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES A MUTUAL FUND COMPANY THAT PURCHASED A SMALL AMOUNT OF THE NOTES INVESTORS SEEM SO CAUGHT UP IN THE FRENZY OF SEARCHING FOR HIGHER YIELD THAT THEY WERE WILLING TO SHRUG OFF THE POLITICAL RISKS HE SAID CHINA INTERNATIONAL IS A STATEOWNED HOLDING COMPANY WHOSE PRINCIPAL ACTIVITY IS TO PROVIDE LOANS AND EQUITY FINANCING FOR JOINT VENTURES AND OTHER PROJECTS IN CHINA THE COMPANY IS ALSO CHINA'S INTERNATIONAL INVESTMENT ARM ACCORDING TO MR KURINSKY AND OTHER BUYERS THE YIELD ON THE CHINA INTERNATIONAL ISSUE COMPARED FAVORABLY TO THE YIELD FROM A SIMILAR ISSUER IN KOREA JUST THREE MONTHS AGO THE KOREA DEVELOPMENT BANK SOLD 300 MILLION OF SEVENYEAR NOTES AT A YIELD SPREAD OF 089 PERCENTAGE POINT OVER SEVENYEAR US TREASURY NOTES TO YIELD 637 THE KOREA ISSUE WAS RATED SLIGHTLY BETTER THAN THE CHINA INTERNATIONAL ISSUE WITH A SINGLEA1 RATING FROM MOODY'S INVESTORS SERVICE INC AND A SINGLEAPLUS RATING FROM STANDARD & POOR'S CORP THE CHINA INTERNATIONAL ISSUE WAS RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P IN A MEETING WITH EXECUTIVES OF DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL HONG YUN CHENG VICE PRESIDENT OF CHINA INTERNATIONAL HINTED THAT THE COMPANY MAY BE CONSIDERING ADDITIONAL ISSUES IN THE US MARKET THROUGH AN INTERPRETER MR CHENG SAID THAT CHINA INTERNATIONAL HOPED TO MAKE ITS BOND ISSUES A BENCHMARK FOR FOREIGN INVESTORS IN CHINESE BONDS SOME MONEY MANAGERS WHO PURCHASED THE BONDS YESTERDAY SUGGESTED THAT AS RECENTLY AS A YEAR AGO US INVESTORS WOULD HAVE BEEN LOATH TO PURCHASE AN ISSUE FROM CHINA BUT FALLING US YIELDS HAVE GIVEN THEM THE COURAGE TO DO SO NOW IF YOU ASKED ME WHY WE DIDN'T COME TO THE US MARKET BEFORE SAID MR CHENG OF CHINA INTERNATIONAL I WOULD SAY IT WASN'T MY FAULT' ACCORDING TO MR CHENG IT WASN'T UNTIL RECENTLY THAT US INVESTORS WOULD HAVE ACCEPTED A CHINESE BOND ISSUE MR CHENG SAID THE US BOND MARKET APPEALED TO CHINA INTERNATIONAL BECAUSE IT IS MORE RECEPTIVE THAN EUROPEAN MARKETS TO LARGE ISSUES WITH LONG MATURITIES THIS YEAR GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP SOLD 150 MILLION OF FIVEYEAR NOTES BUT THAT OFFERING WAS IN THE EUROBOND MARKET WHICH IS CLOSED TO MANY US INVESTORS INVESTOR DEMAND FOR BONDS FROM SOCALLED DEVELOPING NATIONS LIKE CHINA HAS BECOME A MAJOR FORCE IN THE US BOND MARKET IN RECENT MONTHS ISSUERS FROM A NUMBER OF DEVELOPING NATIONS ESPECIALLY LATIN AMERICAN NATIONS HAVE RUSHED NEW BONDS TO THE US MARKET TO TAKE ADVANTAGE OF THIS DEMAND IN THE PAST WEEKS MONEY MANAGERS HAVE WORRIED THAT THE EXPECTED YIELD ON THE CHINA INTERNATIONAL ISSUE WOULD NOT SUFFICIENTLY COMPENSATE INVESTORS FOR THE POLITICAL RISKS OF INVESTING IN CHINA BUT OTHERS HAVE POINTED OUT THAT CHINA INTERNATIONAL IS A QUASIGOVERNMENTAL ENTITY AND THAT CHINA IN GENERAL HAS BEEN BETTER ABOUT PAYING ITS DEBTS THAN HAVE MANY LATIN AMERICAN NATIONS AND HAS A MUCH STRONGER ECONOMY THAN MOST OF THOSE NATIONS SUCH IS THE BURGEONING STRENGTH OF THE CHINESE ECONOMY THAT MANY INVESTORS ARE WILLING TO SHRUG OFF RATHER SIGNIFICANT POLITICAL RISKS ACCORDING TO MOODY'S AN IMPORTANT MEASURE OF A COUNTRY'S ABILITY TO SERVICE ITS DEBT IS THE RATIO OF FOREIGN CURRENCY DEBT TO EXPORT RECEIPTS IN CHINA THAT RATIO IS 73 COMPARED WITH 212 FOR VENEZUELA AND 254 FOR MEXICO ONE OF THE MOST POPULAR FOREIGN ISSUERS WITH US INVESTORS THESE DAYS ACCORDING TO JON WINKELRIED A PARTNER AT GOLDMAN SACHS & CO WHICH WAS THE LEAD UNDERWRITER FOR THE OFFERING MORE THAN HALF OF THE NEW ISSUE WAS PURCHASED BY A HALFDOZEN INVESTMENT ADVISERS FOR CORPORATE AND PUBLIC PENSION FUNDS WITH THE REST BEING SNAPPED UP BY INSURANCE COMPANIES FOREIGN INVESTORS AND INDIVIDUAL US INVESTORS THOSE BUYERS INCLUDED MONEYMANAGEMENT FIRM BOSTON CO AND PENSION FUNDS BASED IN MASSACHUSETTS POLITICAL JOUSTING IN WASHINGTON OVER PRESIDENT CLINTON'S BUDGET PLAN LED US TREASURY NOTES AND BONDS ON A ROLLERCOASTER RIDE WITH PRICES CLOSING HIGHER BY DAY'S END DESPITE THE JUMPINESS THE GOVERNMENT MANAGED TO ATTRACT SOLID BIDDING FOR ITS AUCTION OF 1102 BILLION OF FIVEYEAR NOTES THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE TO 106 2/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE FELL TO 665 FROM 668 THE 10YEAR NOTE ROSE LESS THAN 1/4 POINT TO 102 22/32 TO YIELD 587 DOWN FROM 590 TUESDAY WHILE TREASURY NOTES AND BONDS ENDED WITH MODERATE GAINS THE MARKET MADE SEVERAL MAJOR REVERSALS OVER THE COURSE OF YESTERDAY'S SESSION WE HAD THE OPPORTUNITY TO SEE WHAT WE ARE GOING TO SEE OVER THE NEXT WEEK WHICH IS A LOT OF VOLATILITY MOST OF IT RELATED TO TWISTS AND TURNS IN THE PROCESS OF MAKING THE BUDGET DEAL SAID MATTHEW ALEXY SENIOR MARKET STRATEGIST AT FIRST BOSTON CORP WE ARE GOING TO BE HELD HOSTAGE TO THE ZIGS AND ZAGS OF THE BUDGET NEGOTIATIONS INITIALLY YESTERDAY THE MARKET WAS SOUR ON THE PROSPECTS FOR MR CLINTON'S PLAN WITH TRADERS PUSHING PRICES LOWER IN THE WAKE OF DISSENT BY SEN DAVID BOREN D OKLA MANY TRADERS SET SPECULATIVE SHORT POSITIONS MEANING THEY HAD SOLD SECURITIES BETTING THAT THEY WOULD BE ABLE TO BUY THEM BACK LATER AT LOWER PRICES AND POCKET THE DIFFERENCE BUT THOSE TRADERS FOUND THEMSELVES SCRAMBLING TO BUY BACK THOSE SECURITIES AS THE MARKET TURNED HIGHER IN RESPONSE TO NEWS THAT MR CLINTON WAS CONSIDERING ISSUING AN EXECUTIVE ORDER AIMED AT CONTROLLING ENTITLEMENT SPENDING I GIVE THE PRESIDENT A TREMENDOUS AMOUNT OF CREDIT FOR MENTIONING ENTITLEMENT CAPS AS A VIABLE ALTERNATIVE AND I THINK THAT'S WHAT THE MARKET ACTED ON SAID MICKEY LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK AMID THE WILD SWINGS IN THE MARKET THE TREASURY'S AUCTION OF FIVEYEAR NOTES DREW SOLID DEMAND DEALERS SAID THE TREASURY AWARDED THE FIVEYEAR NOTES A YIELD OF 525 IN LINE WITH MARKET EXPECTATIONS THE DETAILS OF THE AUCTION RESULTS REFLECTED THE HEALTHY INTEREST WITH THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBERS OF BIDS TENDERED TO THOSE ACCEPTED COMING IN AT 277TO1 COMPARED WITH AN AVERAGE OF 258TO1 OVER THE PAST 10 FIVEYEAR NOTE AUCTIONS AFTER THE AUCTION RESULTS WERE RELEASED THERE WAS CONTINUED BUYING BY THE END OF TRADING THE YIELD ON THE WHENISSUED FIVEYEAR NOTE HAD DROPPED TO 521 A SIGN OF STRONG DEMAND ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED AUG 2 AND MATURE JULY 31 1998 PRICES OF MUNICIPAL BONDS WHICH BARELY BUDGED ALL SESSION FINISHED UNCHANGED TO 1/4 POINT LOWER AMONG SECONDARY ISSUES THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 570 BONDS OF 2029 FINISHED 1/8 WEAKER AT 97 5/8 TO YIELD 583 IN TRADING OF CALIFORNIA ISSUES THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 5875 ELECTRIC PLANT REVENUE REFUNDING BONDS OF 2030 CLOSED UNCHANGED AT 100 TO YIELD 585 ONCE AGAIN MOST OF THE ACTION TOOK PLACE IN THE PRIMARY SECTOR OF THE MUNI MARKET THE FLOW OF NEW ISSUES CONTINUED EVEN THOUGH HEAVY SUPPLY HAS PRESSURED PRICES LOWER IN THE LAST FEW WEEKS AND BOOSTED TAXEXEMPT YIELDS ISSUES THAT WERE SOLD YESTERDAY INCLUDED THE CENTRAL VALLEY FINANCING AUTHORITY OF CALIFORNIA'S 144 MILLION ISSUE OF 1993 SERIES COGENERATION PROJECT REVENUE BONDS WHICH WERE BROUGHT TO THE MARKET BY A GOLDMAN SACHS & CO GROUP DUE TO HEAVY DEMAND YIELDS WERE LOWERED 0025 TO 005 PERCENTAGE POINT FOR SEVERAL MATURITIES AT A REPRICING YIELDS NOW RANGE FROM 510 IN 1998 TO 632 IN 2020 THE INITIAL SCALE OF YIELDS WAS 510 IN 1998 TO 635 IN 2020 THE OFFERING HAS BEEN RATED TRIPLEBMINUS BY S&P AND FITCH INVESTORS SERVICE INC PRICES OF MORTGAGE SECURITIES ENDED HIGHER AND MORTGAGE YIELDS MOVED A LITTLE CLOSER TO COMPARABLE TREASURY YIELDS IN SECONDARY TRADING AUGUST DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 COUPONS FINISHED 1/4 POINT HIGHER AT 99 2/32 FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FINISHED 7/32 HIGHER AT 99 2/32 AND FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES FINISHED 7/32 HIGHER AT 99 5/32 MORTGAGE SECURITIES HAVE BEEN POSTING BETTER PRICES IN RELATION TO TREASURYS AS THE TREASURY YIELD CURVE FLATTENS OR AS LONG YIELDS DECLINE IN RELATION TO SHORTTERM INTEREST RATES THIS FLATTENING CAN DISCOURAGE DEALERS FROM CREATING NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS BECAUSE IT MAKES THAT ACTIVITY LESS PROFITABLE FOR THEM BUT THAT DIDN'T STOP DEALERS FROM PRICING 18 BILLION IN NEW REMICS YESTERDAY TWO REMICS WERE ANNOUNCED BY FREDDIE MAC AND FANNIE MAE ANNOUNCED TWO OTHERS OTHER DEALS ARE SAID TO BE IN THE WORKS AND ALTHOUGH TREASURY RATES DID DROP SLIGHTLY YESTERDAY THEY REMAIN HIGH ENOUGH TO HELP STAVE OFF FEARS OF HOMEOWNER MORTGAGE REFINANCING WHICH LEADS TO THE EARLY CALL OF MORTGAGE SECURITIES CREATED FROM THE LOANS THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9307290067 930729 BUSINESS BRIEF PHILLIPS PETROLEUM CO US TAX COURT ALLOWS PART OF BENEFIT FOR FOREIGN CREDIT PHILLIPS PETROLEUM CO SAID THE US TAX COURT HANDED DOWN A RULING THAT FAVORABLY AFFECTS THE COMPANY'S TAX LIABILITY IN ITS TREATMENT OF INCOME FROM THE SALE OF LIQUEFIED NATURAL GAS FROM KENAI ALASKA PHILLIPS REGULARLY SELLS AND SHIPS THE GAS TO TWO UTILITIES IN JAPAN THE COURT SAID PHILLIPS MAY TREAT PART OF THE INCOME AS FOREIGNSOURCED WHICH ENABLES PHILLIPS TO BENEFIT FROM FOREIGN TAX CREDITS THE INTERNAL REVENUE SERVICE HAD SOUGHT TO TREAT ALL THE INCOME AS DOMESTIC WHICH WOULD INCREASE PHILLIPS'S LIABILITY THE BARTLESVILLE OKLA COMPANY SAID IT HAS ALREADY PAID SOME OF THE MONEY AND HAS RESERVED THE REST BUT WOULDN'T DISCLOSE THE TOTAL WHILE THE RULING IS SUBJECT TO AN AGREEMENT BETWEEN PHILLIPS AND THE IRS AND FURTHER COURT APPEALS A FAVORABLE OUTCOME WOULD BOOST PHILLIPS'S INCOME AND CASH POSITION THE COMPANY SAID THE FINAL DISPOSITION COULD STILL TAKE ANOTHER ONE TO TWO YEARS 9307290066 930729 BUSINESS BRIEF TREMONT CORP LOSS IN 2ND PERIOD NARROWED AS SALES INCREASED BY 56 TREMONT CORP BATTLING A GLUT OF TITANIUM METAL ON WORLD MARKETS SAID IT NARROWED ITS LOSSES IN THE SECOND QUARTER AND SQUEEZED OUT AN INCREASE IN SALES THE DENVERBASED METALS AND MINING COMPANY 48OWNED BY VALHI INC A HOLDING COMPANY CONTROLLED BY DALLAS INVESTOR HAROLD SIMMONS SAID LOSSES FROM CONTINUING OPERATIONS TOTALED 2 MILLION OR 28 CENTS A SHARE IN THE SECOND QUARTER COMPARED WITH LOSSES OF 75 MILLION OR 101 A SHARE A YEAR EARLIER SALES GREW 56 TO 397 MILLION FROM 376 MILLION THE COMPANY ATTRIBUTED IMPROVED RESULTS TO INCREASED SALES VOLUME AND OPERATIONAL EFFICIENCIES THE COMPANY ADDED HOWEVER THAT BUSINESS CONDITIONS CONTINUE TO BE HURT BY RECESSIONARY CONDITIONS EXCESS WORLD CAPACITY PRICE PRESSURES REDUCTIONS IN MILITARY AND COMMERCIAL AIRCRAFT SPENDING AND THE AVAILABILITY OF RELATIVELY INEXPENSIVE TITANIUM SCRAP FROM THE FORMER SOVIET UNION 9307290065 930729 BUSINESS BRIEF MAXTOR CORP DISKDRIVE PRICE WAR LED TO LOSS IN FISCAL 1ST QUARTER MAXTOR CORP REELING FROM CONTINUED PRICE WARFARE IN THE DISKDRIVE BUSINESS REPORTED A NET LOSS OF 722 MILLION OR 250 A SHARE FOR THE FISCAL FIRST QUARTER ENDED JUNE 26 IN THE YEAREARLIER QUARTER MAXTOR HAD NET INCOME OF 285 MILLION OR 98 CENTS A SHARE REVENUE IN THE LATEST QUARTER DIVED 23 TO 260 MILLION FROM 3372 MILLION A YEAR EARLIER MAXTOR BASED IN SAN JOSE CALIF IS ONE OF A SMALL GROUP OF LEADING DISKDRIVE MAKERS THAT HAVE BEEN ENGAGED IN A PRICE WAR THAT HAS LED TO HEAVY LOSSES ON TUESDAY WESTERN DIGITAL CORP ANOTHER BIG DRIVE MAKER REPORTED A LOSS OF 378 MILLION OR 107 A SHARE ON REVENUE OF 2852 MILLION EACH TIME THE COMPANIES DEVELOP NEW DRIVES THEY DUEL ON THE PRICE AND BRUTALLY DISCOUNT OLDER MODELS THE PRICE WAR HAS SAVAGED DISKDRIVE MAKERS' STOCKS IN RECENT MONTHS MAXTOR'S LOSS WAS FAR GREATER THAN ANALYSTS' EXPECTATION OF A LOSS IN THE RANGE OF ABOUT 37 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC THE RESULTS WERE RELEASED AFTER THE MARKET CLOSED IN OVERTHECOUNTER TRADING YESTERDAY MAXTOR CLOSED AT 6 UP 375 CENTS 9307290064 930729 A CROWN JEWEL THE JOHNSON FAMILY SPLITS ON WHAT IS BEST FOR BLACKOWNED FIRM IS SELLING HAIRCARE CONCERN GOOD BUSINESS OR THE END OF A FOUNDER'S DREAM SYMBOL TO AFRICANAMERICANS BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO FORTYNINE STORIES ABOVE THIS CITY'S GOLD COAST LAKEFRONT IN HIS ELEGANTLY FURNISHED CONDOMINIUM GEORGE E JOHNSON SITS SURROUNDED BY TATTERED NEWSPAPERS GRABBING ONE HE MOCKINGLY READS A HEADLINE AND SAYS CAN YOU BELIEEEEEVE THIS THE NEWS THAT MR JOHNSON CANNOT FATHOM CONCERNS JOHNSON PRODUCTS CO THE HAIRCARE COMPANY HE STARTED NEARLY 40 YEARS AGO AND BUILT INTO A SYMBOL OF BLACK ENTREPRENEURIAL SUCCESS ITS ULTRA SHEEN CLASSY CURL AND AFRO SHEEN PRODUCTS BECAME FIXTURES IN AMERICA'S BLACK HOUSEHOLDS NOW IVAX CORP A MIAMI COMPANY WITH INTERESTS IN CHEMICALS PHARMACEUTICALS AND COSMETICS HAS AGREED TO BUY THE COMPANY FOR ABOUT 67 MILLION IN STOCK THE IMPENDING SALE HAS MADE THE 66YEAROLD MR JOHNSON SICK HE CAN'T SLEEP HE CAN HARDLY SIT STILL HE GROUSES INCESSANTLY TO HIS FRIENDS HE VOWED YEARS AGO TO KEEP JOHNSON PRODUCTS WITHIN THE BLACK COMMUNITY AND HE HASN'T CHANGED HIS MIND THIS IS THE CROWN JEWEL HE PROCLAIMS BUT THE OUTCOME IS OUT OF MR JOHNSON'S CONTROL THAT IS BECAUSE JOAN B JOHNSON THE COMPANY'S CHAIRMAN CHIEF EXECUTIVE CONTROLLING SHAREHOLDER AND HIS EXWIFE HAS HER MIND MADE UP MRS JOHNSON 63 WHO GAINED HER FORMER HUSBAND'S STAKE IN 1989 TO DISSOLVE THEIR 38YEAR MARRIAGE INTENDS TO SELL HER 54 SHARE AND COLLECT MORE THAN 33 MILLION OF HER EXHUSBAND'S OPPOSITION TO THE SALE MRS JOHNSON SAYS IT IS NOT A CONCERN THIS IS NOT A PERSONAL THING IT IS A BUSINESS DECISION AND I'M CONVINCED IT'S A GOOD BUSINESS DECISION THE SALE OF JOHNSON PRODUCTS HAS SPARKED A HEATED DEBATE WITHIN THE BLACK COMMUNITY TO SOME INCLUDING MRS JOHNSON WHO TERMS IT A MILESTONE THE ACQUISITION BY A MAINSTREAM COMPANY SERVES TO VALIDATE THE PROGRESS MADE BY THESE ONCEALIENATED COMPANIES AND TO SIGNAL A NEW ERA OF GROWTH THIS IS JUST ONE PHASE OF THE CONTINUING EXPANSION OF BLACKOWNED BUSINESS SAYS EARL G GRAVES PUBLISHER OF BLACK ENTERPRISE MAGAZINE THIS IS NOT TO BE PERCEIVED AS A NEGATIVE CRITICS THOUGH SAY THE TRANSACTION WILL HASTEN THE DEMISE OF OTHER BLACKOWNED CONSUMERPRODUCTS COMPANIES MOST OF WHICH EVOLVED BECAUSE MAINSTREAM COMPANIES IGNORED BLACK CONSUMERS THIS HANGS A FOR SALE' SIGN ON THE INDUSTRY SAYS LAFAYETTE JONES HEAD OF THE AMERICAN HEALTH AND BEAUTY AIDS INSTITUTE WHICH REPRESENTS THE 15 BILLIONAYEAR BLACK HEALTH AND BEAUTYAIDS INDUSTRY MR JONES A FORMER JOHNSON PRODUCTS EXECUTIVE SAYS HE HAS MIXED EMOTIONS BECAUSE I REALIZE THIS SALE IS ALSO A COMING OF AGE OTHERS WORRY ABOUT THE EFFECTS ON ASPIRING BLACK ENTREPRENEURS OF THE ABSENCE OF AN INDEPENDENT JOHNSON PRODUCTS LONG A BEACON OF HOPE AND A SYMBOL OF BLACK ECONOMIC AUTONOMY THE COMPANY BECAME A TRAINING GROUND FOR THEM SEVERAL ALUMS RUN THEIR OWN FIRMS NOW AND OTHERS ARE IN EXECUTIVE POSITIONS THROUGHOUT THE HAIRCARE INDUSTRY SEVERAL PROMINENT BLACK BUSINESSES GOT OFF THE GROUND THANKS TO JOHNSON PRODUCTS IN ITS INFANCY ESSENCE MAGAZINE GOT CIRCULATION AND FINANCIAL BOOSTS WHEN THE COMPANY PUT SUBSCRIPTION FORMS INSIDE HAIRRELAXER KITS AT NO CHARGE AND PAID FOR ADVERTISING FAR IN ADVANCE THE DANCE SHOW SOUL TRAIN ONE OF THE LONGESTRUNNING FIRSTRUNSYNDICATION TELEVISION PROGRAMS WAS ABLE TO GO NATIONAL IN 1971 BECAUSE JOHNSON PRODUCTS SIGNED ON AS ITS MAIN SPONSOR AND ITS EARLY TV AND PRINT ADS SPAWNED BLACK ADVERTISING FIRMS AND HELPED CREATE A NEW POOL OF AD WRITERS MODELS AND PERFORMERS ALL BLACK PRACTICALLY EVERYONE AGREES THAT THE STORY OF HOW JOHNSON PRODUCTS EVOLVED CAPTURES THE SPIRIT OF THE COMPANY AND THE FAMILY THAT HAS CONTROLLED IT AND EXPLAINS WHY EMOTIONS ABOUT THE SALE ARE SO STRONG ON BOTH SIDES THE JOURNEY STARTED 46 YEARS AGO WHEN JOAN HENDERSON AND GEORGE JOHNSON BECAME HIGHSCHOOL SWEETHEARTS ON CHICAGO'S SOUTH SIDE IN 1954 WHEN GEORGE WAS WORKING IN THE LAB OF A COSMETICS COMPANY BY DAY AND BUSING TABLES AT NIGHT HE BORROWED 250 TO DEVELOP A PRODUCT THAT WOULD ALLOW BLACK MEN TO STRAIGHTEN THEIR HAIR SODIUM HYDROXIDE OR LYE HAD BEEN USED FOR YEARS BUT OFTEN ITS USE RESULTED IN BADLY BURNED SCALPS AND SEVERE HAIR LOSS AT THE TIME A STYLE CALLED THE PROCESS WAS THE RAGE IT INVOLVED CHEMICALS AND A HEATED METAL COMB STARS LIKE NAT KING COLE LIONEL HAMPTON AND DUKE ELLINGTON WERE ALREADY POPULARIZING THE STRAIGHTHAIR LOOK BUT EVERYONE WAS EAGER FOR AN EASIER AND MORE EFFECTIVE WAY TO GET IT WITH A STATION WAGON LOADED WITH HIS PIONEERING ULTRA WAVE HAIR CULTURE A SAFER LYE AND PETROLEUMBASED HAIR RELAXER MR JOHNSON VISITED HAIRDRESSERS AROUND THE COUNTRY BACK HOME IN CHICAGO MRS JOHNSON HANDLED THE COMPANY'S BOOKKEEPING AND GEORGE'S BROTHER MIXED AND PACKAGED THE PRODUCT IN 1961 JOHNSON PRODUCTS' RELAXER WAS MODIFIED AND PUT IN THE WOMEN'S MARKET BUT BEFORE IT GOT MUCH OF A FOOTHOLD THERE THE COMPANY FACED OBSTACLES ITS FIRST PLANT WENT UP IN FLAMES IN 1964 KILLING AN EMPLOYEE AND INJURING OTHERS RIVALS POPPED UP OFFERING LOWQUALITY PRODUCTS THAT BURNED CUSTOMERS LITERALLY AND SULLIED THE INDUSTRY'S REPUTATION BUT IN 1965 JOHNSON PRODUCTS INTRODUCED A RELAXER THAT DID AWAY WITH THE MESSY PETROLEUMBASED APPLICATION AND SALES EXPLODED THEY SOARED FROM 25 MILLION IN 1965 TO 376 MILLION IN 1975 BY THEN JOHNSON CONTROLLED 85 OF THE PROFESSIONAL RELAXER MARKET AND ALSO DOMINATED THE SMALLER CONSUMER MARKET WHICH IT LARGELY CREATED AND WHICH WOULD EVENTUALLY SURPASS SALES TO SALONS WE WERE GOING TO TOWN MR JOHNSON RECALLS AT THE FIRM'S NEW PLANT WHICH STILL SITS LIKE A MONUMENT ON CHICAGO'S SOUTH SIDE MR JOHNSON CULTIVATED A PATERNALISTIC CULTURE REWARDING EMPLOYEES WITH GENEROUS PROFITSHARING INCENTIVES AND CREATING A FOUNDATION THAT HELPED MORE THAN 1600 BLACK COLLEGE STUDENTS GRADUATE IN THE MID1970S AFTER LINKING UP WITH SOUL TRAIN JOHNSON PRODUCTS HELPED SET THE TONE AND STYLE FOR A GENERATION OF BLACK PEOPLE DURING THE SHOW'S COMMERCIAL BREAKS VIEWERS SAW THEMSELVES IN A NEW LIGHT BLACK PEOPLE MARVELED AT THOSE JOHNSON COMMERCIALS SAYS DON CORNELIUS SOUL TRAIN'S LONGTIME HOST THEY HAD NEVER SEEN THEMSELVES ON TV THAT WAY JUST THERE LOOKING BEAUTIFUL THE JOHNSON FAMILY'S FORTUNES GREW RIGHT ALONG WITH THE COMPANY'S MR JOHNSON RECEIVED 57 MILLION FROM HIS FIRST LIMITED PUBLIC STOCK OFFERING IN 1969 AND 102 MILLION TWO YEARS LATER WHEN THE COMPANY BECAME THE FIRST BLACKOWNED FIRM TO TRADE ON THE AMERICAN STOCK EXCHANGE MEANWHILE THE JOHNSONS WERE LIVING IT UP IN ADDITION TO THEIR SUBURBAN CHICAGO MANSION AND SPRAWLING FARM NEARBY THEY BOUGHT A HOME IN PARIS AND BUILT A JAMAICA GETAWAY IN MISSISSIPPI WHERE MR JOHNSON LIVED AS A YOUNG CHILD HE BOUGHT TWO CATTLE RANCHES TOTALING 5000 ACRES SOON MRS JOHNSON DIVIDING HER TIME BETWEEN THE HOME AND OFFICE WHERE SHE WAS DILIGENTLY LEARNING THE ROPES WAS BECOMING KNOWN AROUND CHICAGO FOR HER STATUESQUE GOOD LOOKS OUTSPOKEN MANNER AND IMPECCABLE TASTE GEORGE LAVISHED GIFTS ON HER BUYING HER MORE THAN 2 MILLION WORTH OF JEWELRY HER WARDROBE GREW TO INCLUDE 20 FUR COATS AND FOR HER 44TH BIRTHDAY HE GAVE HER A ROLLSROYCE CONVERTIBLE TO ADD TO THEIR STABLE OF EXOTIC SPORTS CARS PARTIES AT THE FAMILY HOME INCLUDED PERFORMANCES BY YOUNG POP STARS BARBECUES AT THE FARM FEATURED PRIVATE AIR SHOWS FOR FRIENDS THOSE WERE SOME OF THE BEST YEARS OF MY LIFE MR JOHNSON RECALLS BUT THEN TROUBLE INVADED PARADISE IN 1970 WHILE THE COUPLE WAS VACATIONING IN JAMAICA A NEIGHBOR DROPPED BY THE VISITOR A NEW YORK LAWYER REPRESENTING REVLON INC DISCLOSED THAT REVLON WAS INTERESTED IN PAYING 60 MILLION TO 70 MILLION FOR THE COMPANY MR JOHNSON WASN'T INTERESTED I HAD ENOUGH PERSONAL MONEY HE SAYS AND BESIDES THERE WERE PEOPLE WHO HELPED BUILD THE COMPANY COUNTING ON ME I HAD TO BE IN CONTROL OF THE COMPANY TO HELP THOSE PEOPLE BUT THE SNUB TO REVLON HAD REPERCUSSIONS WITHIN THREE YEARS REVLON HIRED A BLACK SALES FORCE AND BEGAN MARKETING ITS OWN RELAXER PRODUCTS THEN IN 1975 THE FEDERAL TRADE COMMISSION ORDERED JOHNSON PRODUCTS TO WARN CUSTOMERS ON PACKAGE LABELS OF THE DANGER OF USING LYE THE FTC DIDN'T REQUIRE REVLON TO DO THE SAME UNTIL 22 MONTHS LATER AFTER A LAWSUIT BY JOHNSON PRODUCTS BUT IN JOHNSON PRODUCTS' FISCAL 1976 IN THE WAKE OF THE FTC RULING SALES FELL 14 IN THE 1980S SALES AND EARNINGS BEGAN PLUMMETING SMALL REGIONAL RIVALS WERE GRABBING MARKET SHARE AND MAJOR COMPANIES SUCH AS CLAIROL INC AND ALBERTOCULVER CO ALONG WITH REVLON BECAME A HUGE FORCE INSIDE THE COMPANY THERE WERE DISTRIBUTION PROBLEMS THE SALES STAFF WAS TOO LARGE AND UNDERACHIEVING BY 1988 JOHNSON PRODUCTS HAD HAD LOSSES IN THREE OF ITS FOUR PREVIOUS FISCAL YEARS AND ITS BANK DEBT WAS CLIMBING AS THE COMPANY'S FORTUNES FADED SO DID THE GOOD TIMES AT HOME THE JOHNSONS WERE SOON HEADED FOR A MESSY PUBLIC SPLIT FRIENDS BECAME UNEASY WHEN THE COUPLE APPEARED AT SOCIAL FUNCTIONS AND THE FLOW OF INVITATIONS SLOWED IN AN EFFORT TO SAVE THEIR MARRIAGE THE JOHNSONS TOOK A JAUNT TO MONTREAL IN EARLY 1988 DURING THE TRIP MR JOHNSON GAVE HIS WIFE TWO FUR COATS ONE WORTH 95000 BUT THE DAMAGED MARRIAGE COULDN'T BE REPAIRED WITH GIFTS IN MAY OF THAT YEAR MRS JOHNSON FILED FOR DIVORCE THE COUPLE THEN EXCHANGED NASTY CHARGES AND COUNTERCHARGES IN FILINGS IN COOK COUNTY CIRCUIT COURT AT THE TIME OF THE DIVORCE THE MARKET VALUE OF JOHNSON PRODUCTS HAD FALLEN TO ABOUT 11 MILLION AND THE COUPLE'S STOCK WAS WORTH LESS THAN 6 MILLION BY HANDING THE COMPANY OVER TO HIS WIFE MR JOHNSON CHOSE WHAT HE CONSIDERED THE LEAST UNDESIRABLE OPTION HE HAD SAY PEOPLE FAMILIAR WITH THE SITUATION HE CONFIDED TO FRIENDS THAT HIS WIFE WAS DEMANDING HALF OF HIS STOCK BECAUSE SHE ALREADY WAS VOTING TRUSTEE FOR THE SHARES OWNED BY THEIR FOUR CHILDREN THIS WOULD HAVE GIVEN HER VOTING POWER OVER HER HUSBAND ANOTHER CHOICE WAS TO SELL THE COMPANY AND SETTLE BUT MR JOHNSON WAS DETERMINED TO KEEP THE COMPANY IN FAMILY HANDS A YEAR BEFORE THE OCTOBER 1989 DIVORCE SETTLEMENT MR JOHNSON MADE HIS OLDEST CHILD ERIC CHIEF OPERATING OFFICER AND PRESIDENT THEN 37 THE BRIGHT BABSON COLLEGE GRADUATE HAD GROWN UP IN THE COMPANY BUT HAD MORE RECENTLY BEEN RUNNING A SMALL UNPROFITABLE PRIVATELABEL HAIRPRODUCTS BUSINESS AT JOHNSON PRODUCTS ERIC WAS ABLE TO MAKE THE DIFFICULT DECISIONS HIS FATHER COULDN'T QUITE BRING HIMSELF TO HE SHARPLY CUT STAFF AND EXPENSES HE HIRED SOME SMART MANAGERS RECHARGED THE SALES STAFF AND PUT THE COMPANY ON TRACK FOR THE COMEBACK THAT WAS TO FOLLOW BEFORE HE LEFT HIS COMPANY GEORGE JOHNSON MADE A FINAL AND PROPITIOUS STRATEGIC MOVE HE PERSUADED M&M PRODUCTS CO AN ATLANTABASED BLACK HAIRPRODUCTS CONCERN TO SELL ITS PRODUCT LINE TO JOHNSON PRODUCTS THE 5 MILLION PURCHASE ADDED ABOUT 12 MILLION IN ANNUAL SALES AND FATTENED PROFIT MARGINS AS THE NEWLY DIVORCED MRS JOHNSON STEPPED IN AS CHAIRMAN ERIC TOOK OVER AS PRESIDENT AND CHIEF EXECUTIVE OFFICER THE M&M ACQUISITION ALONG WITH MORE COST CUTTING BY THE MOTHERSON TEAM LED TO STEADY EARNINGS GROWTH IN ITS FISCAL YEAR ENDED AUG 31 1991 THE COMPANY EARNED 32 MILLION INCLUDING A 13 MILLION ONETIME CREDIT ON 384 MILLION IN SALES JUST THREE YEARS EARLIER IT HAD POSTED A 25 MILLION LOSS ON CONTINUING OPERATIONS AND A NET LOSS OF 37 MILLION ON 291 MILLION OF SALES BUT FAMILY FRICTION BECAME A PROBLEM AGAIN THE COUPLE'S YOUNGEST DAUGHTER JOANIE HAD JUST RECEIVED HER MBA FROM NORTHWESTERN UNIVERSITY AND HAD EARLIER BEEN PROMISED A SENIOR POSITION BY HER FATHER ACCORDING TO HIM ERIC WAS PREPARED TO FULFILL THE PROMISE BUT BECAME ANGRY WHEN HIS SISTER CHOSE TO TRAVEL WITH HER HUSBAND FORMER CHICAGO BEARS RECEIVER DENNIS MCKINNON INSTEAD OF REPORTING TO WORK AFTER THE FOOTBALL SEASON ENDED WHEN JOANIE FINALLY DID ARRIVE AT WORK ERIC GAVE HER A MIDLEVEL MANAGEMENT JOB INSTEAD OF THE SENIOR POST SHE HAD BEEN PROMISED BUT IN MARCH 1992 MRS JOHNSON FIRED ERIC APPARENTLY BECAUSE THEY COULDN'T AGREE ON THE COMPANY'S FUTURE DIRECTION ERIC 42 WHO NOW OWNS AN ICECREAM FIRM BASED IN SUBURBAN CHICAGO DIDN'T RETURN PHONE CALLS SEEKING COMMENT JOANIE 29 WHO DENIES HAVING ANY ROLE IN ERIC'S DISMISSAL IS NOW HEAD OF MARKETING AT JOHNSON PRODUCTS WITH ERIC GONE HIS MOTHER TOOK ON THE CHIEF EXECUTIVE DUTIES KNOWN AS MRS J AROUND THE OFFICE SHE IS CONSIDERED TOUGH SHREWD AND ALL BUSINESS SAYS A FORMER PERSONAL SECRETARY INCREASINGLY MRS JOHNSON HAS TURNED FOR ADVICE TO THOMAS P POLKE HIRED BY HER SON AS A VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE FORMER ARTHUR ANDERSEN & CO ACCOUNTANT HAS FORMED A SYMBIOTIC RELATIONSHIP WITH FAMILY MEMBERS THEY TAUGHT HIM THE BLACK HAIRCARE BUSINESS AND HE BROUGHT FINANCIAL AND MANAGEMENT EXPERTISE TO THE COMPANY WE ALL UNDERSTAND WHAT OUR ROLE IS SAYS MR POLKE THE STRONGEST THING ABOUT THIS COMPANY IS OUR TEAM EFFORT BUT MR POLKE 31 WHO IS WHITE HAS SPARKED SOME RESENTMENT AT THE COMPANY HE HAS HIRED ANOTHER FORMER ARTHUR ANDERSEN COLLEAGUE COREY MEYER 30 WHO ALSO IS WHITE AS DIRECTOR OF OPERATIONS MANY OF THE COMPANY'S 200 EMPLOYEES NOW REPORT TO ONE OF THE TWO MEN SOME EMPLOYEES DON'T THINK THE WHITE EXECUTIVES HAVE THE RESPECT FOR IT BEING AN AFRICANAMERICAN COMPANY SAYS ONE FORMER EMPLOYEE MR POLKE CONTENDS THAT ALTHOUGH JOHNSON PRODUCTS' MAJORITY SHAREHOLDER MAY BE BLACK AND ITS CUSTOMERS BLACK THE FIRM ITSELF IS PUBLIC AND TO ITS SHAREHOLDERS IT IS SIMPLY AN INVESTMENT WITHOUT REGARD TO RACE THIS IS REALLY A MAINSTREAM COMPANY HE SAYS IN ITS 1992 FISCAL YEAR JOHNSON PRODUCTS EARNED 34 MILLION BEFORE A 19 MILLION TAX CREDIT ON SALES OF 419 MILLION THE RESULTS WERE ATTRACTIVE ENOUGH TO INDUCE IVAX TO AGREE TO PAY A PREMIUM PRICE OF BETWEEN 61 MILLION AND 73 MILLION IN STOCK TO ACQUIRE JOHNSON PRODUCTS THE SIXYEAROLD IVAX FOUNDED BY MIAMI DERMATOLOGIST PHILLIP FROST HAS ABOUT 451 MILLION IN ANNUAL REVENUE AS PART OF THE AGREEMENT MRS JOHNSON OTHER MANAGERS AND THE EMPLOYEES AT JOHNSON PRODUCTS' CHICAGO FACILITY WILL KEEP THEIR JOBS MOREOVER IVAX SAYS IT PLANS TO EXPAND PLANT PRODUCTION AND MAKE SOME OF ITS OTHER PRODUCTS THERE IVAX ADDS THAT IT WILL TRY TO CONTINUE JOHNSON PRODUCTS' SUPPORT OF THE BLACK COMMUNITY AND BLACK BUSINESSES MRS JOHNSON SAYS CRITICISM OF HER SELLING THE COMPANY TO A NONMINORITY FIRM ILLUSTRATES HOW AS A FEMALE AND A BLACK WOMAN WE ARE DEFINITELY HELD TO A DIFFERENT STANDARD KEEPING THE COMPANY IN BLACK CONTROL WAS NOT EVEN MY OBJECTIVE IT WAS A MATTER OF DOING GOOD BUSINESS THAT'S WHAT I WAS CONCERNED WITH MY SHAREHOLDERS ARE HAPPY AS FOR MR JOHNSON WHO HAS REMARRIED AND IS CHIEF SHAREHOLDER AND CHAIRMAN OF INDECORP INC A HOLDING COMPANY FOR TWO SOUTH CHICAGO BANKS WITH 265 MILLION IN ASSETS HE HASN'T BEEN THE SAME SINCE THE NEWS I CANNOT LIVE WITH THIS HE SAYS BUT I GUESS I'LL HAVE TO 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 9307290063 930729 INTERNATIONAL BRIEF BANGKOK BANK LTD PRELIMINARY FIGURES INDICATE 2NDQUARTER PROFIT ROSE 35 BANGKOK BANK LTD THAILAND'S LARGEST COMMERCIAL BANK DISCLOSED FIGURES SUGGESTING THAT SECONDQUARTER NET INCOME ROSE 35 TO 327 BILLION BAHT 1293 MILLION FROM 243 BILLION BAHT A YEAR EARLIER THE BANK REPORTED THAT UNAUDITED PRETAX PROFIT ROSE 19 IN THE FIRST HALF TO 1058 BILLION BAHT FROM 888 BILLION BAHT A YEAR EARLIER THE BANK DIDN'T BREAK OUT SECONDQUARTER DATA BUT BY FACTORING OUT THE 371 BILLION BAHT THE BANK REPORTED IN THE FIRST QUARTER ANALYSTS ARRIVED AT THE SECONDQUARTER FIGURE THE RESULT IS WELL BELOW THE 53 YEARTOYEAR GAIN ACHIEVED IN THE FIRST QUARTER SOME ANALYSTS SUGGESTED THAT BANGKOK BANK MAY BE HIDING SOME OF ITS EARNINGS ON ITS BALANCE SHEET THE BANK OF THAILAND HAS ARGUED THAT BANKS ARE EARNING TOO MUCH PROFIT AND HAS USED THAT AS A STICK TO GOAD THEM TO CUT THE GENERAL LENDING RATE CHARGED TO SMALL BORROWERS BANGKOK BANK HAS UNTIL AUG 15 TO RELEASE AUDITED FIGURES THE PRELIMINARY REPORT WAS GIVEN BECAUSE OF RECENT MARKET SPECULATION AND RUMORS ABOUT THE BANK'S EARNINGS 9307290062 930729 BUSINESS BRIEF SCOTT PAPER CO LAWSUIT WITH SHAREHOLDERS IS RESOLVED FOR 8 MILLION SCOTT PAPER CO SAID IT HAS SETTLED A LAWSUIT WITH CERTAIN SHAREHOLDERS FOR 8 MILLION 3 MILLION OF WHICH WILL BE PAID BY THE COMPANY THE PHILADELPHIA COMPANY SAID LAWYERS FOR PURCHASERS OF SCOTT COMMON SHARES AGREED TO SETTLE AND DISMISS A LAWSUIT FILED IN SEPTEMBER 1990 AGAINST SCOTT ITS CHAIRMAN AND CHIEF EXECUTIVE PHILIP E LIPPINCOTT AND SENIOR VICE PRESIDENT ASHOK N BAKHRU AN INSURANCE CARRIER FOR THE MAKER OF PAPER PERSONAL CARE AND CLEANING PRODUCTS WILL PAY THE REMAINING 5 MILLION OF THE SETTLEMENT THE PURCHASERS ALLEGED THAT CERTAIN MATERIAL FACTS ABOUT THE COMPANY'S 1990 EARNINGS WERE NOT DISCLOSED IN A TIMELY MANNER THE COMPANY SAID LAWYERS FOR THE PLAINTIFFS HAD SOUGHT 93 MILLION BUT HAVE NOW CONCEDED THAT NO INTENTIONAL WRONGDOING WAS INVOLVED SCOTT SAID IT AGREED TO PAY JUST UNDER 3 MILLION TO HALT TIMECONSUMING EXPENSIVE LITIGATION 9307290061 930729 WHO'S NEWS FIRST BOSTON TAPS CRUZ LOEHR NEW YORK FIRST BOSTON CORP NAMED ERNESTO CRUZ AND MARK LOEHR COHEADS OF ITS EQUITY CAPITAL MARKETS DEPARTMENT MR CRUZ 39 YEARS OLD WAS PREVIOUSLY A SENIOR UNDERWRITER AND MR LOEHR 37 WAS A SENIOR MEMBER OF THE DEPARTMENT THAT HANDLES UNDERWRITING AND TRADING OF STOCK OFFERINGS BOTH ARE MANAGING DIRECTORS OF THE FIRM THEY SUCCEED RICHARD KAUFFMAN 38 WHO LEFT FIRST BOSTON TO JOIN MORGAN STANLEY GROUP INC FIRST BOSTON IS A UNIT OF THE INVESTMENT BANKING HOLDING COMPANY CS FIRST BOSTON GROUP 9307290060 930729 BUSINESS BRIEF ANHEUSERBUSCH COS BREWER POSTS SLIGHT INCREASE IN SECONDPERIOD NET INCOME ANHEUSERBUSCH COS REPORTED SECONDQUARTER NET INCOME OF 3086 MILLION OR 112 A PRIMARY SHARE UP SLIGHTLY FROM 3084 MILLION OR 107 A SHARE A YEAR EARLIER PERSHARE FIGURES REFLECT A REDUCTION IN SHARES OUTSTANDING TO 2747 MILLION FROM 2887 MILLION LAST YEAR SALES EXCLUSIVE OF EXCISE TAX INCREASED 14 TO 299 BILLION IN THE LATEST PERIOD COMPARED WITH 295 BILLION A YEAR EARLIER THE COMPANY CALLED THE RESULTS AN ENCOURAGING REFLECTION OF RECENT MARKETING PROGRAMS BUT FIGURES ALSO REFLECT THE PRICING WOES THAT DAMPED INDUSTRY PROFIT MANY BIG BEER COMPANIES HAVE BEEN HURT BY HEAVY PRICE PROMOTION FROM SECONDTIER BREWERS PARTICULARLY IN THE ECONOMICALLY DEPRESSED CALIFORNIA MARKET ANHEUSER ALSO BOOSTED ITS QUARTERLY DIVIDEND TO 36 CENTS FROM 32 CENTS WITH THE NEW RATE PAYABLE SEPT 9 TO HOLDERS OF RECORD AUG IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ANHEUSERBUSCH SHARES CLOSED AT 47625 UP 1375 9307290059 930729 INTERNATIONAL BRIEF BRITISH TELECOMMUNICATIONS PLC PRETAX EARNINGS ADVANCE 3 ON MORE CALLS LOWER COSTS BRITISH TELECOMMUNICATIONS PLC SAID ITS PRETAX PROFIT ROSE 3 IN THE THREE MONTHS ENDED JUNE 30 CITING HIGHER CALL VOLUMES AND COSTCONTROL MEASURES THE TELEPHONE AND COMMUNICATION CONCERN NOTED THAT THE COMPARABLE YEAREARLIER RESULT WAS ADJUSTED TO EXCLUDE EXCEPTIONAL RESTRUCTURING COSTS AND SAID THE PRETAX GAIN WAS 27 BEFORE THIS ADJUSTMENT THE PRETAX PROFIT OF 757 MILLION 113 BILLION WAS SOMEWHAT BELOW MARKET EXPECTATIONS MARKET FORECASTS WERE UNUSUALLY SKETCHY HOWEVER BECAUSE BROKERAGE FIRMS THAT PARTICIPATED IN THE GOVERNMENT'S RECENT SALE OF ITS REMAINING 22 OF THE COMPANY WEREN'T PERMITTED TO DISCUSS BT AHEAD OF THE RESULTS 9307290058 930729 BUSINESS BRIEF ALLIANT AND UKRAINE TO JOINTLY DISMANTLE EXSOVIET MUNITIONS MINNEAPOLIS ALLIANT TECHSYSTEMS INC AGREED WITH UKRAINIAN AUTHORITIES TO FORM A JOINT VENTURE TO DISMANTLE STOCKPILES OF SURPLUS CONVENTIONAL MUNITIONS THE FORMER SOVIET REPUBLIC INHERITED WHEN THE SOVIET UNION DISSOLVED THE WEAPONS MAKER CALLED THE PLANNED ALLIANT KYYIV VENTURE THE FIRST MAJOR STEP IN WHAT WE BELIEVE WILL BE A PROFITABLE BUSINESS FOR ALLIANT THE VENTURE WILL USE SPECIALIZED EQUIPMENT SUPPLIED BY ALLIANT TO CUT UP NOLONGERNEEDED ARMAMENTS AT STORAGE SITES AROUND UKRAINE THE RECLAIMED SCRAP METAL WILL BE SOLD AND THE ENERGETICS THE SHELLS' EXPLOSIVES AND PROPELLANTS MAY BE EITHER CONVERTED INTO COMMERCIAL MINING EXPLOSIVES OR USED IN CERTAIN ALTERNATIVEENERGY SYSTEMS ALLIANT SAID ALLIANT MAKES A HOST OF CONVENTIONAL WEAPONS INCLUDING TANK AMMUNITION TORPEDOES CLUSTER BOMBS AND MACHINEGUN ROUNDS IN THE FACE OF SHRINKING PENTAGON OUTLAYS HOWEVER IT MORE THAN A YEAR AGO BEGAN PURSUING DEMILITARIZATION CONTRACTS IN WHICH IT COULD PUT ITS MUNITIONSHANDLING EXPERIENCE TO WORK DISMANTLING ORDNANCE THE MARKET FOR SUCH SWORDSINTOPLOWSHARES WORK WHILE STILL DEVELOPING IS CONSIDERED POTENTIALLY EXTENSIVE IN ADDITION TO SAFETY CONCERNS SUCH AGING WAR MATERIEL OFTEN PRESENT ENVIRONMENTAL PROBLEMS ALLIANT SAID IT EXPECTS THAT THE VENTURE WITH THE UKRAINIAN MINISTRY OF DEFENSE WILL GENERATE ABOUT 100 MILLION IN SALES OVER THE NEXT FIVE YEARS AND WILL EMPLOY ABOUT ONE HUNDRED PEOPLE 9307290057 930729 BUSINESS BRIEF NOMURA SECURITIES CO GROUP AID PACKAGE ARRANGED TO RESCUE NOMURA FINANCE JAPANESE BROKERAGE FIRM NOMURA SECURITIES CO IS WRAPPING UP A GROUP AID PACKAGE OF 200 BILLION YEN 189 BILLION FOR NONBANK AFFILIATE NOMURA FINANCE CO THE 10YEAR PLAN INCLUDES MERGING NOMURA FINANCE WITH AFFILIATE IB REAL ESTATE CO ON NOV 1 AND BOOSTING THE MERGER'S CAPITALIZATION TO 10 BILLION YEN FROM IB'S 100 MILLION YEN NOMURA LAND & BUILDING CO ONE OF THE GROUP'S PROPERTY MANAGEMENT COMPANIES AND IB'S PARENT WOULD PUT UP ALL OF THE NEW CAPITAL NOMURA SECURITIES WOULD ALSO PURCHASE UP TO 100 BILLION YEN OF MORTGAGEBACKED SECURITIES ISSUED BY NOMURA FINANCE WHICH IS SADDLED WITH REALESTATE LINKED NONPERFORMING ASSETS THE SPOKESWOMAN SAID NOMURA EXPECTS IT WILL TAKE ABOUT 200 BILLION YEN OF PROFIT BASE TO LIQUIDATE NOMURA FINANCE'S NONPERFORMING LOANS NOMURA PLANS TO PUT NOMURA LAND & BUILDING'S UNREALIZED ASSETS AND OTHER GROUP COMPANIES' GAINS TOWARD WRITING OFF NOMURA FINANCE'S NONPERFORMING LOANS NOMURA'S MOVE IS EXPECTED TO BE FOLLOWED BY THE OTHER BIG FOUR SECURITIES HOUSES WHOSE FINANCE UNITS ARE IN SIMILAR CONDITION 9307290056 930729 HELPWANTED ADS FELL IN JUNE NEW YORK HELPWANTED ADVERTISING FELL SLIGHTLY IN JUNE THE CONFERENCE BOARD SAID ITS SEASONALLY ADJUSTED INDEX OF HELPWANTED ADVERTISING IN NEWSPAPERS FELL TO 97 IN JUNE FROM 100 IN MAY A YEAR EARLIER THE INDEX WAS 93 THE LABOR MARKET REMAINS THE WEAKEST SECTOR OF THE ECONOMY SAID KEN GOLDSTEIN ECONOMIST AT THE BUSINESS RESEARCH ORGANIZATION 9307290055 930729 BUSINESS BRIEF EVERGREEN BANCORP INC BOARD REJECTS MERGER OFFERS HAS PLAN FOR PROBLEM LOANS EVERGREEN BANCORP INC SAID ITS BOARD AFTER CONSIDERING A NUMBER OF MERGER OFFERS HAS REJECTED THE BIDS AND DEVISED ITS OWN STRATEGY TO ADDRESS PROBLEM LOANS KEYCORP AN ALBANY NY FINANCIAL SERVICES COMPANY HAS MADE AN OFFER TO ACQUIRE THE COMPANY BUT HASN'T DISCLOSED TERMS AND EVERGREEN HADN'T PREVIOUSLY RESPONDED TO THE OVERTURE EDWARD ALLARD CHAIRMAN OF THE GLENN FALLS NY BANK HOLDING COMPANY SAID EVERGREEN'S OWN STRATEGY IS MORE LIKELY TO PLACE IT IN A POSITION TO MAXIMIZE SHAREHOLDER VALUE THAN AN AGREEMENT WITH ANOTHER COMPANY THE DIRECTORS HAVE ADOPTED A PLAN TO ADDRESS EVERGREEN'S SERIOUS PROBLEMS IN OUR LOAN PORTFOLIO WHICH HAVE ADVERSELY AFFECTED RESULTS OF OPERATIONS THE BANKING COMPANY WHICH HAS 865 MILLION IN ASSETS RECENTLY REPORTED A SECOND QUARTER LOSS WHICH INCLUDED A SHARPLY HIGHER 14 MILLION PROVISION FOR LOAN LOSSES IN OVERTHECOUNTER TRADING EVERGREEN SHARES CLOSED AT 1650 UP 1 9307290054 930729 SEITEL TO POST GAINS HOUSTON SEITEL INC SAID IT EXPECTS TO REPORT THAT NET INCOME IN THE SECOND QUARTER ROSE MORE THAN 70 FROM A YEAR AGO TO MORE THAN 850000 OR 15 CENTS A SHARE IN THE 1992 SECOND QUARTER THE COMPANY EARNED 480000 OR NINE CENTS A SHARE SEITEL AN OILSERVICE COMPANY SPECIALIZING IN SEISMIC DATA ALSO SAID IT EXPECTS TO REPORT THAT REVENUE ROSE MORE THAN 70 FROM THE 1992 QUARTER'S 43 MILLION 9307290053 930729 BUSINESS BRIEF EG&G INC SECONDPERIOD NET FELL 32 LESS THAN CONCERN EXPECTED EG&G INC WHICH EARLIER SAID ITS SECONDQUARTER EARNINGS COULD FALL AS MUCH AS 10 BECAUSE OF WEAK SALES POSTED A 32 DROP IN PROFIT FOR THE QUARTER THE WELLESLEY MASS INSTRUMENT MAKER AND TECHNICAL AND ENERGY SERVICES CONTRACTOR SAID NET FELL TO 211 MILLION OR 37 CENTS A SHARE COMPARED WITH 218 MILLION OR 39 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES DROPPED 48 TO 6621 MILLION FROM 6958 MILLION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING EG&G ROSE 25 CENTS TO 1875 JOHN KUCHARSKI CHAIRMAN SAID THE COMPANY'S YEARTODATE RESULTS LEAVE IT REASONABLY POSITIONED FOR THE SECOND HALF HE ADDED THAT 1993 EARNINGS PER SHARE BEFORE ACCOUNTING CHANGES ARE EXPECTED TO BE AT OR SLIGHTLY ABOVE THE 1992 LEVEL OF 156 A SHARE EG&G'S LOWER SALES FOR THE SECOND QUARTER LARGELY REFLECTED LOWER REVENUE FROM ITS DEPARTMENT OF ENERGY SERVICES SEGMENT THE SEGMENT'S SALES DROPPED 95 DURING THE QUARTER TO 3398 MILLION BECAUSE OF A REDUCTION OF AVAILABLE FEE NEGOTIATED AT ONE OF THE DOE LOCATIONS AND LOWER THAN EXPECTED GRADES AT TWO OTHER DOE LOCATIONS MR KUCHARSKI SAID 9307290052 930729 TECHNOLOGY BRIEF JOHNSON & JOHNSON ETHICON ENDOSURGERY UNIT IS PLANNING TO CUT 335 JOBS JOHNSON & JOHNSON SAID ITS ETHICON ENDOSURGERY UNIT WILL ELIMINATE 335 SALARIED AND HOURLY JOBS IN A MOVE AIMED AT CUTTING COSTS IN AN OPERATION THAT ANALYSTS BELIEVE IS LOSING MONEY ETHICON SAID IT HAS 34 OF THE MARKET FOR MINIMALLY INVASIVE SURGICAL INSTRUMENTS THAT IS SECOND TO US SURGICAL CORP NORWALK CONN A COMPANY WITH WHICH ETHICON HAS BEEN COMPETING FIERCELY AN ETHICON SPOKESMAN SAID THE COMPANY WILL SLASH 175 SALARIED AND 160 HOURLY JOBS 23 OF ITS 1458 WORKERS AT ETHICON'S PLANT IN BLUE ASH OHIO JOHNSON & JOHNSON IS BASED IN NEW BRUNSWICK NJ LORRAINE SCHWARZ AN ANALYST AT WERTHEIM SCHRODER & CO SAID THE MOVE WAS A SURPRISE ANALYSTS HAD ALL BEEN GIVEN TOURS OF THE BRANDNEW FACILITY IN BLUE ASH LAST WEEK THE ETHICON SPOKESMAN DECLINED TO COMMENT ON ETHICON'S SALES OR PROFITS 9307290051 930729 FIRST TENNESSEE CBT MERGER MEMPHIS TENN FIRST TENNESSEE NATIONAL CORP AND CLEVELAND NATIONAL BANK & TRUST CO OF CLEVELAND TENN SAID THEY WOULD MERGE IN A TRANSACTION VALUED AT 438 MILLION IN STOCK SHAREHOLDERS OF CBT WILL RECEIVE 1095 SHARES OF FTNC STOCK FOR EVERY ONE SHARE OF CBT STOCK FOR A TOTAL OF 11 MILLION SHARES OF FTNC STOCK THE NUMBER OF FTNC SHARES MAY CHANGE DUE TO STOCKPRICE FLUCTUATIONS 9307290049 930729 BUSINESS BRIEF NATIONSBANK CORP FIRM TO ACQUIRE LARGE PART OF U S WEST FINANCE UNIT NATIONSBANK CORP CHARLOTTE NC SAID IT AGREED TO ACQUIRE A SUBSTANTIAL AMOUNT OF TELECOMMUNICATIONS COMPANY U S WEST INC'S CORPORATE FINANCE UNIT FOR A PREMIUM OF ABOUT 85 MILLION OVER THE NET VALUE OF THE ASSETS THE SUBSIDIARY U S WEST FINANCIAL SERVICES INC BASED IN STAMFORD CONN WILL PART WITH ABOUT 23 BILLION IN NET RECEIVABLES IN SEVERAL AREAS OF BUSINESS THE PURCHASE FOLLOWS NATIONSBANK'S ACQUISITION LAST FALL OF MOST OF CHRYSLER CORP'S CONSUMER FINANCE UNIT THE MOVES ARE PART OF THE BANK HOLDING COMPANY'S STRATEGY TO SPLIT EVENTUALLY INTO TWO ENTITIES UNDER ONE PARENT ONE PIECE WOULD CONSIST OF THE COMPANY'S TRADITIONAL BANKING OPERATIONS THE OTHER WOULD BE A FINANCIAL SERVICES UNIT U S WEST BASED IN ENGLEWOOD COLO SAID THE SALE WOULD ALLOW IT TO FOCUS ON ITS CORE TELECOMMUNICATIONS BUSINESS THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE FOURTH QUARTER OF 1993 9307290048 930729 BUSINESS BRIEF COMPUADD COMPUTER CORP REORGANIZATION PLAN FILED BY MAILORDER RETAILER COMPUADD COMPUTER CORP FILED A REORGANIZATION PLAN IN US BANKRUPTCY COURT SEEKING TO SETTLE ITS DEBTS EITHER THROUGH OUTSIDE INVESTMENT OR BY TURNING OVER SUBSTANTIALLY ALL THE STOCK OF THE REORGANIZED COMPANY TO UNSECURED CREDITORS THE CLOSELY HELD MAILORDER COMPUTER RETAILER BASED IN AUSTIN TEXAS WAS ONCE PERCEIVED AS A THREAT TO CROSSTOWN RIVAL DELL COMPUTER CORP UNDER COMPUADD'S PLAN FOUNDER BILL HAYDEN WOULD REMAIN CHIEF EXECUTIVE THE COMPANY SAID COMPUADD FILED FOR CHAPTER 11 PROTECTION JUNE 22 AFTER REACHING A STANDOFF WITH ITS LANDLORDS IN DISPUTES STEMMING FROM THE SHUTDOWN OF ITS 110STORE COMPUTER RETAIL OPERATION EARLIER THIS YEAR THE COMPANY LISTED LIABILITIES OF 962 MILLION AND ASSETS OF 805 MILLION THE REORGANIZATION PLAN MUST BE APPROVED BY CREDITORS AND THE COURT 9307290047 930729 WHO'S NEWS SERVICEMASTER LP SERVICEMASTER LP DOWNERS GROVE ILL CLAIRE BUCHAN 31 YEARS OLD FORMERLY DEPUTY ASSISTANT SECRETARY OF THE TREASURY FOR PUBLIC AFFAIRS IN THE BUSH ADMINISTRATION WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT COMMUNICATIONS OF THIS PROVIDER OF HEALTHCARE AND CLEANING SERVICES 9307290046 930729 WHAT'S NEWS BUSINESS AND FINANCE MERCK AGREED TO PAY 6 BILLION IN STOCK AND CASH FOR MEDCO CONTAINMENT THE NATION'S LARGEST MARKETER OF DISCOUNT PRESCRIPTION MEDICINES THE ACQUISITION MAKES MERCK BY FAR THE BIGGEST INTEGRATED PRODUCER AND DISTRIBUTOR OF PHARMACEUTICALS THE DEAL COULD TRIGGER A WAVE OF ALLIANCES AND MERGERS BETWEEN OTHER DRUG MAKERS AND PRESCRIPTIONDRUG MARKETERS MEDCO'S STOCK PRICE SURGED 4375 OR 15 TO 34125 DEMOCRATIC CONGRESSIONAL LEADERS ARE PUSHING A GASOLINE TAX INCREASE OF 65 CENTS A GALLON AS PART OF CLINTON'S BUDGET DEFICITREDUCTION PLAN THE LEADERS WANT TO REACH AN OVERALL ACCORD AS EARLY AS TODAY BUT CONSENSUS ON A GASOLINE TAX HAS BEEN ELUSIVE CLINTON'S ADVISERS HAVE GENERALLY RULED OUT A PAYROLL TAX TO FINANCE THE WHITE HOUSE'S HEALTH PLAN INSTEAD OFFICIALS ARE PROPOSING TO REQUIRE EMPLOYERS TO PAY A PORTION PROBABLY 80 OF EMPLOYEES' INSURANCE PREMIUMS WARNERLAMBERT PLANS TO SELL OVERTHECOUNTER VERSIONS OF GLAXO AND WELLCOME PRESCRIPTION DRUGS THROUGH A JOINT VENTURE WITH WELLCOME CHRYSLER AND FORD MOTOR POSTED SHARPLY HIGHER SECONDQUARTER EARNINGS COMPARED WITH WEAK YEAREARLIER LEVELS THE CAR MAKERS' LATEST RESULTS REFLECTED BRISK VEHICLE SALES BUT CHRYSLER'S STOCK FELL 2 TO 42625 FORD SHARES EDGED UP 75 CENTS TO 52 CLINTON AND US STEEL COMPANIES ARE EXPECTED TO TRY TO NEGOTIATE SOLUTIONS TO WORLD TRADE DISPUTES IN THE WAKE OF A FEDERAL TRADE PANEL'S DECISION INVALIDATING MANY TARIFFS ON FOREIGN STEEL THE WHITE HOUSE SAID IT WOULD FOCUS ON MULTILATERAL NEGOTIATIONS AND BILATERAL TALKS WITH JAPAN ORDERS FOR DURABLE GOODS JUMPED 38 LAST MONTH THE FIRST INCREASE SINCE FEBRUARY BUT ANALYSTS SAID THE MANUFACTURING SECTOR IS STILL WEAK AMERICAN AIR'S CHAIRMAN TESTIFIED IN FEDERAL COURT THAT THE AMR UNIT DID NOT USE LAST YEAR'S FARE CUTS IN A BID TO ELIMINATE ITS RIVALS HE DENIED AMR STOCKPILED CASH FOR SHORTTERM LOSSES PRUDENTIAL SECURITIES PAID AN INVESTOR 29 MILLION TO SETTLE A PARTNERSHIP CASE INVOLVING A FORMER STAR BROKER WHO IS BEING INVESTIGATED BY PROSECUTORS PEOPLE CLOSE TO THE CASE SAID VOLKSWAGEN'S CHAIRMAN ACCUSED GENERAL MOTORS OF WAGING A VENDETTA AGAINST THE GERMAN CAR MAKER' NEW PURCHASING CHIEF AND TOLD VW INVESTORS THEY WILL SEE PROFITS SOON SUN MICROSYSTEMS SAID ITS EARNINGS MORE THAN DOUBLED FOR THE LATEST QUARTER TO 761 MILLION EASILY SURPASSING EXPECTATIONS ON WALL STREET UNION CARBIDE CONCEDED THAT ITS POLYETHYLENE AND ETHYLENEGLYCOL BUSINESSES REMAIN DEPRESSED EASTMAN KODAK REPORTED HIGHERTHANEXPECTED EARNINGS FOR THE SECOND QUARTER REFLECTING THE COMPANY'S COST CUTTING AND A JUNE SURGE IN SALES KODAK ALSO SAID ITS FILM PRODUCT MAINTAINED MARKET SHARE AGAINST PRIVATE LABEL COMPETITORS IN THE QUARTER AFTER LOSING SOME IN THE FIRST QUARTER DIGITAL EQUIPMENT POSTED A PROFIT FOR ITS LATEST QUARTER ENDING A TUMULTUOUS YEAR OF COSTCUTTING AND LAYOFFS THE RESULTS MARKED THE COMPUTER MAKER'S FIRST PROFIT IN TWO YEARS ITS STOCK FELL 625 CENTS TO 3725 TANDEM COMPUTERS POSTED A THIRDQUARTER LOSS OF 5495 MILLION WHICH INCLUDES 451 MILLION OF CHARGES THE COMPANY ALSO ANNOUNCED ITS SECOND MAJOR RESTRUCTURING IN TWO YEARS AND PLANS TO CUT JOBS 15 OVER A YEAR BORDEN SAID PROFIT PLUNGED 65 FOR THE SECOND QUARTER AND SLASHED ITS DIVIDEND IN HALF AMID DISAPPOINTING RESULTS IN ITS DAIRY AND FOOD BUSINESSES BORDEN'S CEO INDICATED THE COMPANY WILL BE SHEDDING SOME BUSINESSES THE FOOD AND HOUSEHOLD PRODUCT COMPANY'S STOCK FELL 1375 OR 8 TO 15875 BONDS LEHMAN BROTHERS TREASURY INDEX 531935 UP 1274 COMMODITIES OIL 1823 A BARREL OFF 19 CENTS DOW JONES FUTURES INDEX 13042 UP 049 SPOT INDEX 12416 UP 001 DOLLAR 10580 YEN OFF 028 17175 MARKS OFF 00103 9307290045 930729 HCAHOSPITAL CORP'S STOCK NASHVILLE TENN HCAHOSPITAL CORP OF AMERICA SAID ITS EMPLOYEE RETIREMENT PLAN WILL PURCHASE 57 MILLION HCA COMMON SHARES FROM JP MORGAN CAPITAL CORP IN A PRIVATE TRANSACTION EXPECTED TO CLOSE BY AUG11 THE PRICE WASN'T DISCLOSED WHILE HCA'S STOCK WAS QUOTED AT 2050 UP 625 CENTS IN LATE BIG BOARD TRADING YESTERDAY HCA SAID THE PRICE WILL BE AT A DISCOUNT TO CURRENT PUBLIC TRADING PRICES AS PART OF THE AGREEMENT JP MORGAN CAPITAL A SUBSIDIARY OF JP MORGAN & CO WON'T OFFER OR SELL ANY OF ITS REMAINING HCA SHARES FOR AT LEAST SIX MONTHS PRIOR TO THIS AGREEMENT JP MORGAN HCA'S LARGEST INSTITUTIONAL INVESTOR HELD 258 MILLION HCA SHARES ONCE THE TRANSACTION IS COMPLETED JP MORGAN WILL HOLD 201 MILLION SHARES AND THE HCA RETIREMENT PLAN WILL OWN 251 MILLION SHARES 9307290044 930729 BUSINESS BRIEF NUI CORP DEFINITIVE ACCORD SET TO BUY PENNSYLVANIA & SOUTHERN GAS NUI CORP SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE PENNSYLVANIA & SOUTHERN GAS CO IN A STOCK TRANSACTION VALUED AT 17 MILLION OR 7150 PER PENNSYLVANIA SHARE UNDER TERMS PREVIOUSLY ANNOUNCED EACH PENNSYLVANIA & SOUTHERN SHAREHOLDER IS TO RECEIVE FROM 24 TO 3 NUI COMMON SHARES FOR EACH PENNSYLVANIA & SOUTHERN SHARE HELD THE EXCHANGE VALUE OF NUI STOCK WILL BE ESTABLISHED UPON CLOSING OF THE AGREEMENT NUI SAID NUI IS A BEDMINSTER NJ UTILITY HOLDING COMPANY THAT OPERATES IN NEW JESEY AND FLORIDA PENNSYLVANIA & SOUTHERN BASED IN SAYRE PA SERVICES CUSTOMERS IN NORTH CAROLINA PENNSYLVANIA NEW YORK AND MARYLAND 9307290043 930729 BUSINESS BRIEF ONEITA INDUSTRIES INC CHARGE OF 75 MILLION SET FOR FISCAL THIRD QUARTER ONEITA INDUSTRIES INC SAID IT WOULD REPORT A 75 MILLION PRETAX CHARGE FOR THE FISCAL THIRD QUARTER TO CONSOLIDATE ITS MANUFACTURING OPERATIONS THE ANDREWS SC MAKER OF ACTIVEWEAR SAID THE RESTRUCTURING CHARGE CAUSED A LOSS IN THE QUARTER WHICH ENDED JUNE 30 ONEITA'S RESULTS WILL BE RELEASED WITHIN THE NEXT WEEK THE COMPANY DECLINED TO GIVE A SPECIFIC DOLLAR AMOUNT OF THE LOSS THE RESTRUCTURING CHARGE INCLUDES THE ELIMINATION OF 500 OF THE COMPANY'S 3600 JOBS ONEITA'S BOARD ALSO ANNOUNCED THAT THE COMPANY AND INSTRUMENT SYSTEMS CORP WHICH OWNS 25 OF ONEITA'S STOCK HAVE HIRED OPPENHEIMER & CO TO EXPLORE VARIOUS BUSINESS ALTERNATIVES INCLUDING SELLING THE COMPANY OR SELLING INSTRUMENT SYSTEMS' STAKE IN ONEITA 9307290042 930729 BROADCASTING NBC HIGH BID FOR OLYMPICS STARTLES INDUSTRY BY ELIZABETH JENSEN AND GLENN RUFFENACH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK NBC'S EXPENSIVE BID TO BROADCAST THE 1996 SUMMER OLYMPICS IN ATLANTA IS RAISING EYEBROWS IN THE TV INDUSTRY WHERE SKEPTICS WONDER HOW THE NETWORK CAN AVOID A REPLAY OF ITS HEAVY LOSSES ON THE 1992 GAMES AFTER A DAY OF BIDDING AGAINST RIVAL NETWORKS ABC AND CBS NBC WON OUT WITH ITS RECORD 456 MILLION BID 6 MILLION MORE THAN THE INTERNATIONAL OLYMPIC COMMITTEE HAD SOUGHT AS A MINIMUM NBC SPORTS PRESIDENT DICK EBERSOL ALREADY IS CONFIDENTLY PREDICTING THE GAMES WILL TURN AT LEAST A 10 MILLION PROFIT FOR NBC A UNIT OF GENERAL ELECTRIC CO THAT'S A BOLD PROJECTION IN THE VIEW OF MANY INDUSTRY EXECUTIVES PARTICULARLY FOR THE NETWORK THAT HAD A LOSS OF 100 MILLION ON THE 1992 BARCELONA GAMES NBC WHICH PAID 401 MILLION FOR THE RIGHTS TO THOSE GAMES AND INCURRED ANOTHER 100 MILLION IN PRODUCTION COSTS VASTLY OVERESTIMATED ITS REVENUE FROM ADVERTISING AND FROM A PAYPERVIEW CABLE VENTURE ADVERTISING INDUSTRY EXECUTIVES SAY THEY DON'T SEE HOW NBC CAN DO MUCH BETTER THIS TIME BUT FOR STRUGGLING NBC THE RIGHTS TO BROADCAST THE SUMMER OLYMPICS BEING PLAYED FOR THE FIRST TIME IN A DECADE ON US SOIL ARE KEY TO THE NETWORK'S BID TO PUT THE STRUT BACK IN THE PEACOCK SYMBOL OF THE ONCEDOMINANT NETWORK THE NETWORK IS RANKED NO 3 IN PRIME TIME AND THE OLYMPICS FIT NEATLY INTO THE SPORTS PROGRAMMING THAT IS A MAJOR PART OF THE NETWORK'S EFFORT TO IMPROVE RATINGS AND LURE ADVERTISERS IN THE PAST SEVERAL MONTHS NBC HAS LOCKED UP FUTURE RIGHTS TO A NUMBER OF MAJOR SPORTING EVENTS SUCH AS THE 1994 SUPER BOWL AND THE NATIONAL BASKETBALL ASSOCIATION AND IN A JOINT VENTURE WITH CAPITAL CITIES/ABC INC MAJOR LEAGUE BASEBALL UNLIKE CBS INC WHICH SUFFERED HEAVY LOSSES WITH A SIMILAR STRATEGY IN THE PAST FIVE YEARS NBC HAS BEEN CAREFUL NOT TO OVERPAY FOR SPORTS RIGHTS AND HAS COME UP WITH MORECREATIVE WAYS TO SHARE RISKS WITH ITS SPORTS PARTNERS BUT INDUSTRY EXECUTIVES SAY THAT WITH THE OLYMPICS NBC APPEARS TO BE FLIRTING WITH DANGER AGAIN PARTICULARLY WITH NO CABLE PARTNER YET TO HELP SHARE OLYMPICSRELATED COSTS WITHOUT SOME CABLE INVOLVEMENT THEY WON'T BREAK EVEN SAYS JOEL M SEGAL EXECUTIVE VICE PRESIDENT NATIONAL BROADCASTING AT INTERPUBLIC GROUP'S MCCANNERICKSON IN BARCELONA NBC HAD AD SALES OF ABOUT 520 MILLION ONE AD AGENCY EXECUTIVE CALCULATED THAT NBC WOULD HAVE TO GENERATE MORE THAN 650 MILLION IN AD SALES JUST TO BREAK EVEN THIS TIME AFTER FACTORING IN THE RIGHTS FEE PRODUCTION COSTS IN ATLANTA AND AD AGENCY COMMISSIONS THAT'S GOING TO BE A TOUGH NUMBER TO GET TO HE SAYS ADDING YOU HAVE TO CONSIDER WHAT ELSE THEY MAY HAVE FACTORED IN THE PROMOTIONAL OPPORTUNITIES REVENUE TO THEIR OWNEDANDOPERATED STATIONS THEY MAY BE WILLING TO TAKE A MODERATE LOSS IT'S AN AGGRESSIVE BID WAS THE CHARACTERIZATION BY DENNIS SWANSON PRESIDENT OF ABC SPORTS THE RUNNERUP IN THE BIDDING CBS EXECUTIVES DECLINED TO COMMENT CBS WAS DROPPED FROM THE BIDDING AT THE SAME TIME AS ABC MR EBERSOL WHO TURNED 46 YESTERDAY MAINTAINS THAT NBC DIDN'T OVERPAY FOR THE OLYMPICS RIGHTS AND SAYS THAT EVEN WITHOUT A CABLE PARTNER NBC CAN TURN A PROFIT MR EBERSOL ACKNOWLEDGED THAT AD SALES ALONE WOULD NOT BE ENOUGH BUT HE SAID THE NETWORK EXPECTS PAYMENTS FROM NBC'S MORE THAN 200 AFFILIATE STATIONS AND SEVEN NETWORKOWNED TELEVISION STATIONS BOTH GROUPS CONTRIBUTED TO BARCELONA'S 401 MILLION RIGHTS FEE THIS TIME THEY WILL PAY MORE MR EBERSOL SAID AFFILIATE EXECUTIVES SAID NO FIRM CONTRIBUTIONS HAD BEEN WORKED OUT THE GAMES HOWEVER ARE CLEARLY VALUABLE TO A NETWORK'S AFFILIATE BODY ABC FOR EXAMPLE ESTIMATED INTERNALLY THAT THE GAMES WERE WORTH MORE THAN 100 MILLION TO AFFILIATES IN LOCAL ADVERTISING TIME NBC PRESIDENT ROBERT WRIGHT SAID THAT MAINTAINING LOCAL SALES EXCLUSIVITY FOR AFFILIATES WAS A KEY PART OF NBC'S DEAL IF NBC TAKES ON A CABLE PARTNER THE PARTNER WILL NOT BE ALLOWED TO SELL LOCAL ADS TO KEEP AD RATES HIGH NBC WILL ALSO CONTROL ALL NATIONAL AD SALES EVEN IF IT SIGNS ON A NATIONAL CABLENETWORK PARTNER SOME INDUSTRY OBSERVERS SAY THINGS COULD GO BETTER FOR NBC THIS TIME FOR THE FIRST TIME THE SUMMER GAMES WON'T COMPETE FOR AD TIME WITH WINTER GAMES IN THE SAME YEAR AND BECAUSE THE GAMES ARE IN THE US AND IN AN EASTERN TIME ZONE THEY ARE MORE VALUABLE THAN IF THEY HAD BEEN HELD ABROAD IF THE GAMES HAD BEEN OFFSHORE I DON'T THINK THEY WOULD HAVE ACHIEVED EVEN THE NUMBER THAT BARCELONA DID SAYS ABC SPORT'S MR SWANSON BECAUSE THE GAMES ARE HERE A NUMBER OF MARQUEE EVENTS FROM BASKETBALL TO GYMNASTICS WILL BE LIVE IN PRIMETIME BARCELONA EVENTS WERE SHOWN TAPEDELAYED WITH RESULTS AVAILABLE BEFORE AMERICANS SAW THE EVENTS ON TELEVISION THEY'LL GET AN ENORMOUS AMOUNT OF PROMOTION AND HIGHER RATINGS BECAUSE US VIEWERS CAN WATCH THEM LIVE SAYS CHRISTOPHER DIXON A PAINEWEBBER ANALYST BIDDING DECISION NBC REACHED ITS TOP BID FIGURE INITIALLY 454 MILLION 12 DAYS BEFORE THE PRESENTATION AND OFFICIALS AT PARENT GE SIGNED OFF MR EBERSOL SAID IT THEN GOT RAISED DAYS LATER TO 456 MILLION ON MR EBERSOL'S OPINION THAT BIDS SHOULD BE 1 MILLION MORE THAN A ZERO OR A FIVE HE SAID ADDING I WAS INDULGED TUESDAY MORNING AFTER NBC ABC AND CBS SUBMITTED THEIR WRITTEN BIDS 456 MILLION FOR NBC 440 MILLION FOR ABC AND 405 MILLION FOR CBS EACH SPENT AN HOUR MAKING ITS CASE BEFORE ABOUT 20 OLYMPICS EXECUTIVES NBC HAD PREPARED A VIDEOTAPE FOR ITS PRESENTATION BUT NO ONE COULD GET THE VCR TO WORK PROPERLY WE HAD SOUND BUT NO PICTURES A PARTICIPANT SAID AFTER 10 MINUTES THEY BAGGED IT AFTER A LUNCH BREAK ALL THREE NETWORKS WERE TOLD TO SUBMIT A SECOND FINAL BID THE NETWORK THAT MATCHED OR EXCEEDED A WRITTEN FIGURE THAT THE OLYMPICS OFFICIALS HAD SETTLED ON WHICH LATER WAS DISCLOSED AS 475 MILLION WOULD GET THE GAMES WHEN NO ONE REACHED THAT FIGURE ABC AND CBS EACH RAISED THEIR BIDS BY 10 MILLION OLYMPICS OFFICIALS CALLED TOP BIDDER NBC BACK IN FOR FINAL NEGOTIATIONS AT 510 PM THE AFTERNOON MANEUVERINGS A PERSON CLOSE TO THE TALKS SAID WERE LITTLE MORE THAN AN EFFORT BY THE OLYMPIC COMMITTEE TO SEE IF THEY COULD DRIVE THE PRICE A LITTLE HIGHER NBC DID OFFER SEVERAL SWEETENERS REVENUE SHARING WHEN GROSS NETWORK AD SALES REACH 615 MILLION MR EBERSOL SAYS THERE IS AT LEAST A 5050 CHANCE THAT THE TARGET WILL BE MET AT LEAST 6 MILLION IN PROMOTION TIME IN OTHER MAJOR SPORTS EVENTS FOR THE OLYMPICS TO SELL TICKETS AND COINS AND NINE 30MINUTE WEEKEND DAYTIME PROGRAMS THAT THE OLYMPICS ORGANIZERS WILL PROGRAM AND SELL ADS IN AND THE ICING ON THE CAKE 30 MINUTES OF TIME WHICH NBC VALUED AT 1 MILLION BEFORE NBC STARTS ITS JANUARY 1994 SUPER BOWL PREGAME PROGRAM ALSO FROM ATLANTA THAT THE OLYMPICS ORGANIZERS CAN USE TO KICK OFF THE COUNTDOWN TO THE GAMES ONE QUESTION MARK IS THE ROLE OF ATLANTABASED TURNER BROADCASTING SYSTEM INC THE CABLEPROGRAMMING GIANT HAD TALKED WITH ALL THREE NETWORKS ABOUT BROADCASTING SOME OF THE OLYMPICS ON ITS TBS AND TNT NETWORKS MR EBERSOL SAID TALKS WITH TURNER BROKE DOWN BECAUSE TURNER INSISTED ON BEING PAID FOR CARRYING SOME EVENTS WHILE NBC WANTED A RISKSHARING PAYMENT FROM ITS CABLE PARTNER ONE PERSON CLOSE TO THE NEGOTIATIONS SAID TURNER WAS SEEKING PAYMENT ONLY AS A TRADEOFF FOR TURNING OVER THE SALES OF ITS OLYMPIC AD TIME TO A NETWORK PARTNER OFFICIALS AT TURNER DECLINED TO COMMENT ON MR EBERSOL'S REMARKS DON MCGUIRE SENIOR VICE PRESIDENT AND EXECUTIVE PRODUCER FOR TURNER SPORTS SAID ONLY THAT THE COMPANY REMAINS INTERESTED IN BEING PART OF THE ATLANTA OLYMPICS MR EBERSOL SAID HE EXPECTS TO OPEN TALKS WITH CABLE PARTNERS AROUND LABOR DAY AND HOPES TO HAVE ONE LINED UP BY NOV 1 STEVEN BORNSTEIN PRESIDENT OF CABLE NETWORK ESPN SAID HE IS INTERESTED IN A DEAL WITH NBC EVEN THOUGH ESPN IS PARTOWNED BY RIVAL ABC DESPITE MADISON AVENUE'S MIXED REACTION TO NBC'S BID AD AGENCY EXECUTIVES SAID THAT THE EVENTUAL ADDITION OF A CABLE PARTNER AND OTHER INTANGIBLE BENEFITS MIGHT MAKE NBC'S EFFORT WORTHWHILE SAYS MR SEGAL OF MCCANNERICKSON THEY'LL HAVE A STATUS AND STATURE GOING INTO THE 199697 SEASON THAT NO OTHER NETWORK WILL BE ABLE TO MATCH IT'S 17 DAYS OF MUSTWATCH PROGRAMMING 9307290041 930729 BUSINESS BRIEF REXON INC COMPANY EXPECTS TO REPORT UP TO 48 MILLION WRITEOFF REXON INC SAID IT EXPECTS TO REPORT A WRITEOFF OF BETWEEN 38 MILLION AND 48 MILLION FOR ITS THIRD QUARTER ENDED JUNE 27 THE COMPANY SAID IT WILL REPORT A NET LOSS FOR ITS THIRD QUARTER AS A RESULT THE SIMI VALLEY CALIF COMPANY SAID THE WRITEOFFS INVOLVE A SUBSTANTIAL PORTION OF CERTAIN INTANGIBLE ASSETS SUCH AS GOODWILL LICENSES AND CAPITALIZED SOFTWARE COSTS REXON SAID THE EXACT AMOUNT OF THE WRITEOFFS WILL BE DETERMINED WITHIN TWO WEEKS EARNINGS WILL BE REPORTED THE WEEK OF AUG 9 THE COMPANY SAID REXON A MAKER OF TAPE DRIVES TAPEDRIVE SYSTEMS AND COMPUTERRELATED PRODUCTS SAID IT IS SUFFERING FROM OVERALL PRICE EROSION AND SOFT PRODUCT DEMAND PARTICULARY IN ITS EUROPEAN MARKETS REXON STOCK ROSE 625 CENTS OR 15 TO CLOSE AT 425 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9307290040 930729 BUSINESS BRIEF CURTISSWRIGHT CORP COMPANY NEGOTIATES TO SELL METAL IMPROVEMENT UNIT CURTISSWRIGHT CORP LYNDHURST NJ SAID IT IS NEGOTIATING THE SALE OF ITS METAL IMPROVEMENT CO UNIT AS WELL AS ITS BUFFALO NY FACILITY THE TWO ENTITIES TOGETHER ACCOUNT FOR 46 OF THE COMPANY'S ANNUAL NET SALES THE MAKER OF AEROSPACE AND INDUSTRIAL PARTS ALSO SAID IT DISCONTINUED EXPLORING THE POSSIBLE SALE OF ITS FLIGHT SYSTEMS GROUP WHICH DEVELOPS AND MANUFACTURES ACTUATION AND CONTROL SYSTEMS FOR THE AEROSPACE INDUSTRY PROSPECTIVE BUYERS OVERLY DISCOUNTED THE COMPANY'S PROSPECTS DUE TO THE CUTBACKS IN THE COMMERCIAL AVIATION INDUSTRY THE COMPANY SAID 9307290039 930729 KMART PUTS PRESSURE ON TOY COMPANIES TO CARRY MORE RISK TROY MICH KMART CORP THE NATION'S SECONDLARGEST RETAILER IS DEMANDING THAT TOY MANUFACTURERS DELIVER THEIR MERCHANDISE ON CONSIGNMENT FORCING THE COMPANIES TO CARRY THE PRODUCT ON THEIR BOOKS FOR A LONGER PERIOD OF TIME TOYS R US INC HAS TOLD SOME MANUFACTURERS THAT IT WOULD EXPECT TO GET EQUALLY FAVORABLE TERMS FROM SUPPLIERS OVER THE PAST TWO YEARS THE COUNTRY'S THREE BIGGEST TOY RETAILERS KMART TOYS R US AND WALMART STORES INC HAVE BEEN PRESSURING MANUFACTURERS TO BEAR MORE RISK BY DEMANDING JUSTINTIME DELIVERY OF TOYS INSTEAD OF CARRYING A LARGE STOCK OF TOYS THE RETAILERS REORDER AS INVENTORY IS DEPLETED KMART'S MOVE IS AN UNUSUALLY AGGRESSIVE ATTEMPT TO SQUEEZE EXPENSES IN THE HOTLY COMPETITIVE DISCOUNT MARKET BEFORE THE CHRISTMAS SEASON KMART IN PARTICULAR IS HAVING TROUBLE MOVING MERCHANDISE AND APPARENTLY IS TRYING TO FORCE SUPPLIERS TO SHOULDER SOME OF ITS PROBLEMS TOYS ACCOUNT FOR ABOUT 9 OF KMART'S SALES WHICH TOTALED 377 BILLION LAST YEAR TOYS SOLD ON A CONSIGNMENT BASIS WOULD NOT BE BOOKED AS SALES BY MANUFACTURERS WHEN DELIVERED TO KMART WAREHOUSES INSTEAD THE MANUFACTURERS WOULD HAVE TO KEEP THE PRODUCTS ON THEIR BOOKS UNTIL THE TOYS MOVE TO STORES TOY MANUFACTURERS HAVEN'T AGREED TO GO ALONG WITH THE DEMAND CONSIGNMENT IS ABSOLUTELY NOT IN MY VOCABULARY SAID ALAN HASSENFELD CHAIRMAN OF HASBRO INC THE NATION'S LARGEST TOY COMPANY DAVID MILLER EXECUTIVE DIRECTOR OF THE TOY MANUFACTURERS ASSOCIATION SAID OUR MEMBERSHIP HAS POLITELY DECLINED TO GO ALONG 9307290038 930729 TAXABLE MONEY FUNDS SAW YIELDS EDGE UP IN THE LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEY MARKET FUNDS ROSE FRACTIONALLY IN THE LATEST WEEK TAXFREE YIELDS JUMPED FOR THE SECOND CONSECUTIVE WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS CREPT UP TO 268 FROM 266 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE FUNDS ROSE TO 191 FROM 173 THE NEWSLETTER REPORTED THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 265 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 277 FOR SOMEONE PAYING 31 IN TAXES TAXEXEMPT YIELDS TYPICALLY RISE IN JULY IN RESPONSE TO AN INCREASED SUPPLY OF MUNICIPAL SECURITIES AT THE BEGINNING OF MANY MUNICIPALITIES' FISCAL YEAR ASSETS OF 607 TAXABLE FUNDS FELL 302 BILLION TO 47649 BILLION IN THE LATEST WEEK MONEY FUND REPORT SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 296 BILLION OF THE OUTFLOW WHICH WALTER FRANK CHIEF ECONOMIST FOR THE NEWSLETTER ATTRIBUTED TO SOMEWHAT HIGHER RATES ON DIRECT MARKET INVESTMENTS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM INTEREST RATES TO RISE SHARPLY SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED UP TO 265 FROM 263 IN THE LATEST WEEK WHILE THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 264 THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 267 ASSETS OF 325 TAXFREE FUNDS SLIPPED BY 3457 MILLION TO 10167 BILLION AVERAGE MATURITY OF THE TAXFREE FUNDS' PORTFOLIOS REMAINED AT 65 DAYS 9307290037 930729 FORD IS RECALLING SOME '90'91 ECONOLINE VANS FOR FAULTY SUSPENSION DETROIT FORD MOTOR CO IS RECALLING 25000 E250 ECONOLINE CARGO VANS SOLD WITH OPTIONAL HEAVYDUTY SUSPENSIONS DURING THE 199091 MODEL YEARS THE REAR SHOCK CROSSMEMBER USED ON THESE VANS IS PRONE TO CRACKING AND MAY SEPARATE FROM THE VEHICLE'S FRAMERAIL A SEPARATED CROSSMEMBER CAN DAMAGE THE VAN'S BRAKE FLUID LINE OR FUEL LINE EXPOSING THE DRIVER TO THE RISK OF BRAKE FAILURE OR FIRE FORD SAID IT HAS RECEIVED NO REPORTS OF ACCIDENTS INJURIES OR FIRES AS A RESULT OF THE CROSSMEMBER PROBLEM REPORTS OF CRACKING HAVE COME ONLY FROM COMMERCIAL FLEET VEHICLES WITH THE OPTIONAL SUSPENSION EQUIPMENT NO REPORTS HAVE COME FROM VANS IN NONFLEET USE FORD IS NOTIFYING ECONOLINE OWNERS BY MAIL THE AUTO MAKER IS HAVING FORD DEALERS REPLACE THE CROSSMEMBER WITH A REDESIGNED CROSSMEMBER THAT WAS INTRODUCED IN 1992 ECONOLINE CARGO VANS DEALERS ALSO WILL INSPECT BRAKE FLUID AND FUEL LINES AND WILL REPLACE THEM IF THEY ARE DAMAGED 9307290036 930729 BUSINESS BRIEF ALBERTA ENERGY CO APPROVAL SOUGHT TO BUILD MAJOR OIL PIPELINE TO US ALBERTA ENERGY CO SAID IT PLANS TO SEEK REGULATORY APPROVAL TO BUILD THE FIRST MAJOR OIL PIPELINE DIRECTLY FROM ALBERTA TO THE US THE CALGARY NATURAL RESOURCES COMPANY SAID THE PROJECT WOULD COST 470 MILLION CANADIAN DOLLARS US366 MILLION A SPOKESMAN SAID ALBERTA ENERGY HOPES TO HAVE THE PIPELINE IN SERVICE BY JULY 1995 IT WOULD RUN FROM A CRUDEOIL SUPPLY HUB AT HARDISTY ALBERTA TO CASPER WYOMING WHERE IT WOULD LINK UP WITH EXISTING PIPELINES THE SPOKESMAN SAID ALBERTA ENERGY PLANS TO APPLY TO CANADA'S NATIONAL ENERGY BOARD FOR REGULATORY APPROVAL THIS FALL AND TO FILE AN APPLICATION IN THE US WITH THE FEDERAL ENERGY REGULATORY COMMITTEE ALBERTA ENERGY SAID THE NEW PIPELINE WOULD OFFER US REFINERIES A SUPPLY ALTERNATIVE AS DOMESTIC OIL PRODUCTION FALLS AND PROVIDE ALBERTA OIL PRODUCERS WITH AN ALTERNATIVE EXPORT ROUTE 9307290035 930729 ABREAST OF THE MARKET INDUSTRIAL AVERAGE DECLINES 1201 ON EARNINGS NEWS PROFITTAKING BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK EARNINGS NEWS CLOBBERED SEVERAL INDIVIDUAL STOCKS AND PROFITTAKING HIT SOME RECENT GAINERS PUSHING THE MARKET MODESTLY LOWER THE DOW JONES INDUSTRIAL AVERAGE SHED 1201 OR 034 TO 355345 LED LOWER BY LOSSES IN DUPONT WHICH POSTED DISAPPOINTING RESULTS MERCK & CO WHICH DISCLOSED PLANS TO MAKE A BIG ACQUISITION AND SEVERAL CYCLICALS A STRONG GROUP EARLIER IN THE WEEK DUPONT SKIDDED 1 3/8 TO 47 1/4 MERCK FELL 1 3/8 TO 30 3/4 MINNESOTA MINING & MANUFACTURING DROPPED 1 TO 108 3/8 AND CATERPILLAR SLIPPED 1 1/8 TO 77 7/8 DECLINING BIG BOARD ISSUES LED ADVANCERS BY A SLIM 975TO924 MARGIN VOLUME WAS ACTIVE AT 269791190 SHARES UP SOMEWHAT FROM 252524910 TUESDAY OVERALL THOUGH OBSERVERS SAID THERE WERE FEW THEMES THE MARKET WAS GENERALLY COMPRISED OF A LOT OF INDIVIDUAL SITUATIONS I DON'T THINK THERE WAS ANY ONE FACTOR MOVING PRICES SAID DENNIS JARRETT MARKET STRATEGIST AT KIDDER PEABODY & CO CYCLICALS THOUGH HAD LED THE MARKET ON MONDAY AS THE DOW JONES INDUSTRIAL AVERAGE JUMPED TO A RECORD THE AVERAGE EASED 224 TUESDAY IT DOESN'T SEEM LIKE THERE ARE A LOT OF PEOPLE SELLING INTO THIS ALL WE ARE SEEING IS A LITTLE PROFITTAKING SAID DALE TILLS A VICE PRESIDENT OF TRADING AT CHARLES SCHWAB & CO DUPONT TUMBLED AFTER REPORTING SECONDQUARTER PROFIT FROM OPERATIONS OF 79 CENTS A SHARE THAT WAS UP FROM 72 CENTS BEFORE A CHARGE LAST YEAR BUT BELOW LEVELS ANALYSTS HAD FORECAST THE WILMINGTON DEL SPECIALTY CHEMICAL PRODUCER'S STOCK WAS JUST ONE OF THE MAJOR ISSUES THAT TUMBLED AFTER NEWS ON PROFITS BORDEN LOST 1 3/8 TO 15 7/8 AFTER IT REPORTED SHARPLY LOWER EARNINGS AND SLASHED ITS QUARTERLY PERSHARE DIVIDEND TO 15 CENTS FROM 30 CENTS THE NEW YORK FOOD CONCERN'S SECONDQUARTER PROFIT FELL TO 20 CENTS A SHARE FROM 55 CENTS A YEAR AGO CHRYSLER TUMBLED 2 TO 42 5/8 EVEN THOUGH THE AUTO MAKER POSTED IMPROVED SECONDQUARTER EARNINGS OF 685 MILLION OR 186 A SHARE UP FROM 178 MILLION OR 54 CENTS A YEAR AGO THE LATEST QUARTER INCLUDED 110 MILLION IN GAINS FROM ASSET SALES FORD MOTOR THOUGH INCHED UP 3/4 TO 52 IT HAD A SECONDQUARTER PROFIT OF 143 A SHARE UP FROM 70 CENTS A YEAR EARLIER EVEN WITH YESTERDAY'S MISSTEPS SECONDQUARTER EARNINGS AS A WHOLE HAVE BEEN BETTER THAN EXPECTED SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY OVERALL RESULTS FOR THE QUARTER ARE UP 16 FROM THEIR YEARAGO LEVELS AND UP ABOUT 7 FROM THE FIRSTQUARTER PACE HE SAID THE MOMENTUM IN EARNINGS IS CONTINUING DESPITE THE FACT THE ECONOMY IS ONLY GROWING SLOWLY WHICH MEANS CORPORATIONS ARE STARTING TO SEE THE PAYOFF FROM THE BELTTIGHTENING OF THE PAST COUPLE OF YEARS MR JOHNSON SAID MERCK TOPPED THE BIG BOARD MOSTACTIVE LIST WITH VOLUME OF 125 MILLION SHARES AFTER THE WHITEHOUSE STATION NJ PHARMACEUTICAL MAKER AGREED TO ACQUIRE MEDCO CONTAINMENT FOR 6 BILLION IN CASH AND STOCK SHARES OF MEDCO A MONTVALE NJ COMPANY THAT PROVIDES DRUGS TO EMPLOYERSPONSORED HEALTH PLANS JUMPED 4 3/8 TO 34 1/8 IN NASDAQ TRADING AT&T CAPITAL THE LEASING AND FINANCING UNIT OF AMERICAN TELEPHONE & TELEGRAPH JUMPED 2 3/8 TO 23 7/8 ON ITS FIRST DAY OF TRADING THE FIVE MILLION SHARE INITIAL OFFERING WAS PRICED AT 2150 EACH AT&T WHOSE SHARES EASED 1/4 TO 64 CUT ITS STAKE IN THE COMPANY TO 87 FROM 100 THROUGH THE OFFERING GENERAL MILLS SLIPPED 3 1/2 TO 59 1/8 GOLDMAN SACHS ANALYST NOMI GHEZ REDUCED A RATING ON THE MINNEAPOLIS FOOD COMPANY'S STOCK TO OUTPERFORM FROM BUY CITING CONCERN ABOUT WEAK CEREAL SALES EASTMAN KODAK CLIMBED 1 3/8 TO 52 3/8 THE ROCHESTER NY PHOTOGRAPHY PRODUCTS CONCERN HAD PROFIT FROM CONTINUING OPERATIONS OF 93 CENTS A SHARE IN THE SECOND QUARTER UP FROM 86 CENTS A YEAR EARLIER INTERNATIONAL BUSINESS MACHINES DROPPED 1 5/8 TO 44 AFTER JUMPING 3 1/4 TUESDAY WHEN BIG BLUE POSTED A HUGE LOSS AND TRIMMED ITS DIVIDEND THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EDGED UP 001 TO 43478 THERE WERE 299 DECLINERS AND 258 ADVANCERS 9307290034 930729 BUSINESS BRIEF TAMBRANDS INC LOSS FOR 2ND PERIOD POSTED REFLECTING 12 DROP IN SALES TAMBRANDS INC POSTED A SECONDQUARTER LOSS REFLECTING A 12 DROP IN SALES OF ITS FLAGSHIP TAMPAX BRAND AND A RESTRUCTURING CHARGE FOR COSTCUTTING THE NEW YORK COMPANY REPORTED A LOSS OF 34 MILLION OR NINE CENTS A SHARE COMPARED WITH PROFIT OF 284 MILLION OR 72 CENTS A SHARE IN THE YEAREARLIER PERIOD EXCLUDING THE CHARGE OF 203 MILLION NET WOULD HAVE DROPPED 41 SALES FELL TO 149 MILLION FROM 169 MILLION THE COMPANY ATTRIBUTED THE SALES DROP TO LOWER SALES VOLUME IN THE US DRIVEN BY REDUCTIONS IN TRADE INVENTORIES AND LOWER MARKET SHARE IT ALSO CITED THE DIVESTITURES OF SEVERAL BUSINESSES LAST YEAR AND THE WEAKENING OF EUROPEAN CURRENCIES 9307290033 930729 AETNA WINS CONTRACT FOR MILITARY PROGRAM IN CALIFORNIA HAWAII SAN DIEGO AETNA LIFE & CASUALTY CO WON A 35 BILLION CONTRACT TO HANDLE MEDICAL CARE FOR MORE THAN 840000 MILITARY RETIREES AND DEPENDENTS IN CALIFORNIA AND HAWAII ENDING A TWOYEAR BATTLE FOR THE PLUM AWARD AETNA BEAT OUT FOUNDATION HEALTH CORP WHICH HANDLED THE HAWAIICALIFORNIA BUSINESS SINCE 1988 WHEN THE CIVILIAN HEALTH AND MILITARY PROGRAM OF THE UNIFORMED SERVICES OR CHAMPUS BEGAN THE SOCALLED REFORM INITIATIVE PROGRAM AS A TEST HOPING TO CONTAIN COSTS CHAMPUS LET FOUNDATION BASED IN RANCHO CORDOVA CALIF TAKE CHARGE OF ITS HEALTH PROGRAMS IN CALIFORNIA AND HAWAII BENEFICIARIES WERE ENCOURAGED TO JOIN EITHER A HEALTHMAINTENANCE ORGANIZATION OR A PREFERREDPROVIDER ORGANIZATION AETNA WAS A MAJOR SUBCONTRACTOR TO FOUNDATION ON THAT CONTRACT HANDLING DOCTOR AND HOSPITAL NETWORKS FOR MUCH OF SOUTHERN CALIFORNIA THE LOSS IS A BIG BLOW TO FOUNDATION WHICH RELIED ON THE CONTRACT FOR MORE THAN 40 OF ITS REVENUE AND NEARLY AS LARGE A SHARE OF ITS OPERATING PROFIT AETNA ALSO BEAT OUT WELLPOINT HEALTH NETWORKS INC OF WOODLAND HILLS CALIF AND QUALMED INC OF PUEBLO COLO IN THE COMPETITION ROBERT H KAPLAN VICE PRESIDENT AETNA/CHAMPUS DIVISION SAID THIS NEW CONTRACT WILL GIVE US THE OPPORTUNITY TO EXPAND OUR PAST SUCCESSES AS WELL AS FULLY IMPLEMENT NEW METHODS OF PROVIDING ENROLLEES WITH QUALITY HEALTH CARE WHILE CONTROLLING COSTS FOR TAXPAYERS CHAMPUS ESTIMATES IT HAS SAVED MORE THAN 350 MILLION THROUGH THE PROGRAM SINCE 1988 AETNA HAD ABOUT 17 BILLION IN REVENUE LAST YEAR AND IS ONE OF THE BIGGEST HEALTH INSURERS IN THE COUNTRY ITS GROUP HEALTH PLANS COVER 13 MILLION PEOPLE THREE MILLION OF THEM IN MANAGEDCARE PROGRAMS THIS IS A VERY SIGNIFICANT CONTRACT FOR US SAID AN AETNA OFFICIAL BUT ONE ANALYST SAID IT'S UNCLEAR HOW PROFITABLE THE CONTRACT WILL BE IF IT'S GOVERNMENT BUSINESS YOU CAN'T ASSUME THERE WILL BE HUGE PROFIT MARGINS BUT AETNA WOULDN'T HAVE DONE IT IF THEY DIDN'T THINK THEY COULD MAKE MONEY AT SOME POINT SAID ALICE CORNISH INSURANCE ANALYST FOR NORTHINGTON PARTNERS 9307290032 930729 A&P AGREES TO SETTLE CHILD LABOR CHARGES PAY 490000 IN FINES WASHINGTON GREAT ATLANTIC & PACIFIC TEA CO AGREED TO SETTLE CHARGES THAT IT VIOLATED CHILDLABOR LAWS AND WILL PAY 490000 IN CIVIL FINES THE LABOR DEPARTMENT SAID THE DEPARTMENT'S WAGE AND HOUR DIVISION SAID THAT SINCE 1987 THE SUPERMARKET COMPANY EMPLOYED MORE THAN 800 MINORS IN JOBS THAT WERE TOO DANGEROUS INCLUDING CUTTING MEAT AND OPERATING POWER DOUGH MIXERS AND BALERS WHICH ARE USED TO CRUSH CARDBOARD BOXES THE COMPANY ALSO EMPLOYED 14YEAROLDS AND 15YEAROLDS DURING PROHIBITED TIMES AND IN EXCESS OF PERMISSIBLE HOURS THE DEPARTMENT SAID IN ADDITION A&P ALSO ILLEGALLY EMPLOYED 12YEAROLDS AND 13YEAROLDS THE AGENCY SAID VIOLATIONS WERE FOUND AT 106 A&P STORES INCLUDING 59 IN NEW YORK AND 43 IN NEW JERSEY ACCORDING TO THE DEPARTMENT IN ADDITION VIOLATIONS WERE FOUND IN A&P SUBSIDIARIES A SPOKESMAN FOR A&P SAID THAT THE COMPANY DIDN'T ADMIT LIABILITY IN SETTLING THE CASE WE WERE TRYING TO RESOLVE EXPENSIVE LONGRUNNING LITIGATION WITH THE LABOR DEPARTMENT HE SAID HE SAID LOCKS HAVE BEEN INSTALLED ON BALERS AND ADDED THAT WE DON'T HIRE 14 AND 15YEAROLDS ANYMORE IT'S JUST TOO HARD TO ADMINISTER THEIR HOURS TO MEET FEDERAL REQUIREMENTS UNDER FEDERAL LABOR LAWS 14YEAROLDS AND 15YEAROLDS MAY WORK OUTSIDE SCHOOL HOURS BUT CAN'T WORK FOR MORE THAN THREE HOURS ON A SCHOOL DAY NOR BEFORE 7 AM OR AFTER 7 PM ON THOSE DAYS YOUTHS UNDER AGE 14 MAY WORK ONLY IF THE JOBS ARE EXEMPT FROM CHILDLABOR STANDARDS THERE ARE NO HOURLY RESTRICTIONS FOR 16YEAROLDS AND 17YEAROLDS 9307290031 930729 BUSINESS BRIEF FLETCHER CHALLENGE LTD COMPANY TO SELL 12 STAKE IN CANADIAN FORESTRY UNIT FLETCHER CHALLENGE CANADA LTD SAID ITS NEW ZEALANDBASED PARENT PLANS TO SELL A 12 STAKE IN THE COMPANY FOR ABOUT 2888 MILLION CANADIAN DOLLARS US2248 MILLION THE SALE WOULD MARK THE SECOND TIME THIS YEAR THAT FLETCHER CHALLENGE LTD HAS REDUCED ITS INTEREST IN THE VANCOUVER BRITISH COLUMBIA FORESTPRODUCTS CONCERN THE PROPOSED TRANSACTION WILL CUT ITS STAKE TO 51 FROM 63 CURRENTLY AND ABOUT 72 EARLIER THIS YEAR FLETCHER CHALLENGE CANADA SAID ITS PARENT PLANS TO SELL 15 MILLION SHAREPURCHASE WARRANTS AT C5 EACH TO A SYNDICATE OF UNDERWITERS WHO IN TURN WILL OFFER THEM TO THE PUBLIC EACH WARRANT WILL BE EXCHANGEABLE INTO A FLETCHER CHALLENGE CANADA CLASS A COMMON SHARE AT C1425 A SHARE PAYABLE IN INSTALLMENTS OF C4 LATER THIS YEAR AND C1025 ON MARCH 15 1995 FLETCHER CHALLENGE CANADA SHARES CLOSED YESTERDAY AT C19 DOWN 50 CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE BRUCE COOPER A DIRECTOR OF THE VANCOUVER COMPANY SAID THE PARENT WHICH HAS BUSINESSES IN BUILDING MATERIALS PAPER AND ENERGY SAW NO ADVANTAGE IN HOLDING MORE THAN A CONTROLLING STAKE 9307290030 930729 BUSINESS BRIEF TELEDYNE INC US CLAIMS OF DISCREPANCIES IN PRODUCT TESTS ARE SETTLED TELEDYNE INC SAID IT HAS SETTLED GOVERNMENT CLAIMS INITIATED BY THE LOS ANGELES COMPANY'S VOLUNTARY DISCLOSURE OF DISCREPANCIES IN ITS TELEDYNE ELECTRONICS UNIT'S TESTING PROCEDURES THE DISCREPANCIES INVOLVED FAILURE TO PERFORM CERTAIN CONTRACTUALLY REQUIRED TESTS ON A TRANSPONDER IN THE ARMY'S STINGER MISSILE SYSTEM A TRANSPONDER IS PART OF AN AIRCRAFT IDENTIFICATION SUBSYSTEM THAT TELLS THE OPERATOR IF THE TARGET AIRCRAFT IS HOSTILE OR FRIENDLY UNDER THE SETTLEMENT TELEDYNE WILL PAY THE GOVERNMENT AT LEAST 10 MILLION5 MILLION IN CASH AND THE BALANCE IN PARTS AND LABOR UNDER A RECALL AND REPAIR PROGRAM IF TELEDYNE SPENDS LESS THAN 5 MILLION ON THE RECALL PROGRAM THE COMPANY WILL PAY THE DIFFERENCE IN CASH IN 1991 TELEDYNE THROUGH THE DEPARTMENT OF DEFENSE'S VOLUNTARY DISCLOSURE PROGRAM DISCLOSED THAT BETWEEN 1980 AND 1986 ITS UNIT HAD FAILED TO PERFORM THE TRANSPONDER TESTS SUBSEQUENT REVIEWS OF THE TESTING PROGRAMS LED TO ADDITIONAL GOVERNMENT ALLEGATIONS OF DISCREPANCIES IN OTHER TESTING PROCEDURES ON THE SUBSYSTEM THE SETTLEMENT CLEARS ALL THESE CLAIMS 9307290029 930729 XEROX FINANCE ARM MOVES TO SELL FURMEN SELZ UNIT STAMFORD CONN XEROX CORP'S FINANCE SUBSIDIARY SIGNED A LETTER OF INTENT TO SELL FURMEN SELZ HOLDING CORP TO THE INVESTMENT FIRM'S MANAGEMENT FOR ABOUT 100 MILLION CONTINUING XEROX'S EXIT FROM FINANCIAL SERVICES XEROX FINANCIAL SERVICES INC SAID THE TRANSACTION COUPLED WITH THE ANNOUNCED SALE OF FURMEN'S MONEY MANAGEMENT UNIT WILL BRING IN PROCEEDS OF ABOUT 160 MILLION TO BE USED TO PAY DOWN DEBT THE SALE IS THE LATEST OF SEVERAL STEPS BY XEROX TO SELL OFF FINANCIAL SUBSIDIARIES AND STICK TO THE MAIN COPYING AND OFFICE EQUIPMENT BUSINESS LAST YEAR XEROX SOLD ITS VAN KAMPEN MERRITT COS MONEYMANAGEMENT UNIT TO CLAYTON DUBILIER & RICE INC IT HAS YET TO SELL CRUM & FORSTER INC A COMMERCIAL PROPERTY AND CASUALTY INSURER AND XEROX LIFE A LIFE INSURANCE AND ANNUITY UNIT ACQUIRED BY XEROX IN 1987 FURMEN SELZ IS A SMALL REGIONAL BROKERAGE FIRM BASED IN NEW YORK WITH 500 EMPLOYEES AND 10 BILLION IN ASSETS UNDER MANAGEMENT THE TRANSACTION IS SUBJECT TO FINANCING BY THE MANAGEMENT GROUP XEROX CORP'S FINANCE SUBSIDIARY SIGNED A LETTER OF INTENT TO SELL FURMAN SELZ HOLDING CORP TO ITS MANAGEMENT FURMAN'S NAME WAS MISSPELLED IN AN ARTICLE YESTERDAY 9307290028 930729 MOLLICONE SENTENCED TO 40 YEARS IN PRISON FOR BANKING FRAUDS PROVIDENCE RI JOSEPH MOLLICONE JR SUSPECTED OF PRECIPITATING THE 1991 COLLAPSE OF RHODE ISLAND'S BANKING SYSTEM WAS SENTENCED BY A STATE COURT JUDGE TO 40 YEARS IN PRISON AND ORDERED TO PAY ABOUT 124 MILLION IN RESTITUTION AND FINES RHODE ISLAND SUPERIOR COURT JUDGE DOMINIC CRESTO SUSPENDED 10 YEARS OF MR MOLLICONE'S SENTENCE WHICH REPRESENTS ONE OF THE STIFFEST EVER FOR CRIMES STEMMING FROM A BANKING SCANDAL THE COURT RECOGNIZED THIS IS AN OPPORTUNITY TO SEND A MESSAGE ABOUT THIS KIND OF CRIME SAID JEFFREY PINE RHODE ISLAND'S ATTORNEY GENERAL BEING AN INSIDER IN THIS STATE CAN MEAN BEING INSIDE A JAIL CELL MR MOLLICONE FORMERLY PRESIDENT OF HERITAGE LOAN & INVESTMENT BANK WAS CONVICTED IN APRIL OF EMBEZZLEMENT RECORDS FALSIFICATION AND RELATED CHARGES A SUPERIOR COURT JURY FOUND HIM GUILTY ON 29 COUNTS INCLUDING STEALING 158 MILLION FROM HERITAGE THE EMBEZZLEMENT OVERWHELMED THE RESOURCES OF THE RHODE ISLAND SHARE & DEPOSIT INDEMNITY CORP A PRIVATE DEPOSIT INSURANCE FUND AND LED TO THE CLOSING OF 45 BANKS AND CREDIT UNIONS THROUGHOUT THE STATE AFTER THE EMBEZZLEMENT WAS UNCOVERED MR MOLLICONE 50 YEARS OLD DISAPPEARED IN NOVEMBER 1990 BUT SURRENDERED TO AUTHORITIES IN APRIL 1992 PROSECUTORS CHARGED THAT HE EMBEZZLED MONEY FROM 1985 TO 1990 BY CREATING BOGUS LOANS AND LOAN PAYMENTS IN HERITAGE'S COMPUTERS AS PART OF THE SCHEME HE MOVED MONEY OUT OF DEPOSITORS' ACCOUNTS INTO THE BANK'S CAPITAL ACCOUNT TO INFLATE ITS VALUE AND DECEIVE STATE REGULATORS THEY ALLEGED ROBERT MANN AN ATTORNEY REPRESENTING MR MOLLICONE SAID HE ALREADY FILED A NOTICE OF APPEAL FOR HIS CLIENT IF THE APPEAL FAILS MR MOLLICONE WON'T BE ELIGIBLE FOR PAROLE FOR AT LEAST 10 YEARS SAID A SPOKESMAN FOR ATTORNEY GENERAL PINE 9307290027 930729 ECONOMY HOUSE CLEARS CLINTON'S SERVICE PLAN TRIMS EDUCATION AID FOR PARTICIPANTS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROVED PRESIDENT CLINTON'S NATIONALSERVICE PLAN AFTER FIRST TRIMMING THE EDUCATION AID PARTICIPANTS WOULD RECEIVE FOR DOING COMMUNITYSERVICE JOBS THE HOUSE VOTE ON THE BILL AN IMPORTANT LEGISLATIVE PRIORITY FOR THE PRESIDENT WAS 275152 BY A VOICE VOTE THE LAWMAKERS ADOPTED AN AMENDMENT TO SET TUITION BENEFITS AT 90 OF THE AID PROVIDED UNDER THE GI BILL TO PEOPLE WHO HAVE SERVED IN THE MILITARY PARTICIPANTS WOULD RECEIVE 9450 IN TUITION AID FOR TWO YEARS COMPARED WITH THE 10000 SOUGHT BY MR CLINTON MEANWHILE SENATE NEGOTIATORS MET LAST NIGHT IN AN EFFORT TO RESOLVE DIFFERENCES THAT HAVE STALLED THE BILL IN THAT CHAMBER SENATE REPUBLICANS ARGUE THAT THE BILL IS TOO EXPENSIVE BUT DEMOCRATS CHARGE THAT MUCH OF THE OPPOSITION IS MOTIVATED BY A DESIRE TO DEPRIVE THE PRESIDENT OF A MAJOR WIN AT A CRUCIAL TIME SENATE DEMOCRATS PLANNED TO HOLD A CLOTURE VOTE TODAY IF AN AGREEMENT WITH REPUBLICANS PROVES ELUSIVE LATE YESTERDAY IT WAS UNCLEAR WHETHER THE DEMOCRATS WOULD HAVE THE 60 VOTES NEEDED TO END DEBATE IN THE HOUSE THE AMENDMENT TO REDUCE THE EDUCATION AID WAS OFFERED BY REP BOB STUMP WHO PROPOSED LIMITING THE BENEFITS TO 80 OF THE GI BENEFITS THE ARIZONA REPUBLICAN ARGUED THAT SETTING THE BENEFIT LEVEL FOR NATIONAL SERVICE TOO CLOSE TO THE GI AID WOULD HURT MILITARY RECRUITMENT REP GV MONTGOMERY D MISS THEN SUGGESTED A COMPROMISE OF 90 WHICH WAS ACCEPTED IN RETURN FOR A TWOYEAR ENLISTMENT MEMBERS OF THE MILITARY RECEIVE 11700 IN EDUCATION AID WHICH IS PAID OVER THREE YEARS ACCORDING TO CONGRESSIONAL AND WHITE HOUSE AIDES BUT MILITARY PERSONNEL MUST PUT UP 1200 TO QUALIFY FOR THE ASSISTANCE SO THE NET AMOUNT OF BENEFITS IS 10500 DESPITE THE REDUCTION IN EDUCATION AID FOR NATIONALSERVICE PARTICIPANTS WHITE HOUSE OFFICIALS SAID THEY WERE SATISFIED WITH HOUSE PASSAGE OF THE BILL JACK LEW GENERAL COUNSEL IN THE NATIONALSERVICE OFFICE SAID THE LOWER AID WON'T HAVE ANY EFFECT ON THE HEART AND SOUL OF THE PROGRAM 9307290026 930729 TECHNOLOGY TANDEM POSTS 3RDPERIOD LOSS AFTER A CHARGE BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF TANDEM COMPUTERS INC LAPSING INTO A RESTRUCTURING MODE THAT IT ONCE THOUGHT WAS MOSTLY BEHIND IT REPORTED A FISCAL THIRDQUARTER LOSS OF 5495 MILLION INCLUDING 451 MILLION OF RESTRUCTURING CHARGES THE COMPUTER CONCERN ALSO SAID IT WOULD EMBARK ANEW ON A BROAD OVERHAUL OF THE COMPANY ITS SECOND MAJOR RESTRUCTURING IN TWO YEARS THE EFFORT IS MAINLY MEANT TO BRING COSTS DOWN AND WILL FEATURE A 15 CUT IN EMPLOYMENT OVER THE NEXT 12 MONTHS THAT MEANS LAYING OFF ABOUT 1600 TO 1800 PEOPLE ADDITIONALLY TANDEM SAID IT INSTITUTED A PERMANENT 5 CUT IN COMPENSATION AND BENEFITS FOR ALL EMPLOYEES INCLUDING MANAGEMENT THE QUARTERLY RESULTS OFFER A PORTRAIT OF A COMPANY STRUGGLING DESPERATELY TO ADAPT TO THE FIERCE PRICE COMPETITION IN THE COMPUTER INDUSTRY AND TO THE PROLIFERATION OF SMALLER AND CHEAPER YET MORE POWERFUL MIDRANGE COMPUTERS TANDEM HISTORICALLY HAS FOCUSED ON SERVERS AND OTHER PRODUCTS AND SERVICES FOR LARGER MORE EXPENSIVE COMPUTER SYSTEMS IT IS NOW BEING RATTLED BY THE SAME TRENDS THAT HAVE HAMMERED THE LIKES OF INTERNATIONAL BUSINESS MACHINES CORP AND DIGITAL EQUIPMENT CORP THIS MONTH TANDEM SAID IT WOULD HAVE AN OPERATING LOSS FOR THE QUARTER ENDED JUNE 30 BUT THE OPERATING LOSS IT REPORTED FAR EXCEEDED MOST ANALYSTS' ESTIMATES ACCORDING TO ZACKS INVESTMENT RESEARCH INC ANALYSTS GENERALLY EXPECTED A LOSS BEFORE ANY RESTRUCTURING CHARGES OF ABOUT 14 CENTS A SHARE TANDEM DECLINED TO PROVIDE A FIGURE FOR ITS LOSS EXCLUDING THE CHARGES BUT THE COMPANY'S ANNOUNCEMENT INDICATED THAT THE FIGURE WOULD HAVE BEEN SEVERAL TIMES THE FORECASTED 14 CENTS A SHARE DEPENDING ON CERTAIN ACCOUNTING PROCEDURES THE NET LOSS INCLUDING THE CHARGES WORKED OUT TO 549 A SHARE REVENUE SLID 5 TO 4756 MILLION FROM 5032 MILLION IN TRADING ON THE NEW YORK STOCK EXCHANGE TANDEM CLOSED AT 1050 DOWN 25 CENTS IN THE YEAREARLIER QUARTER TANDEM EARNED 174 MILLION OR 16 CENTS A SHARE FOR THE FIRST NINE MONTHS TANDEM REPORTED A LOSS OF 5209 MILLION OR 465 A SHARE INCLUDING THE 451 MILLION OF RESTRUCTURING CHARGES REVENUE EDGED UP 1 TO 148 BILLION JAMES G TREYBIG PRESIDENT AND CHIEF EXECUTIVE SAID WEAKNESS IN THE GENERAL ECONOMY PARTICULARLY IN EUROPE ALSO HURT RESULTS HE ADDED THAT THE COMPANY HAS UNVEILED LOWPRICED PRODUCTS DESIGNED TO DO BATTLE WITH RIVALS' CUTRATE MACHINES BUT MR TREYBIG SAID TANDEM EXPECTS NO BETTER THAN A BREAKEVEN FOURTH QUARTER AND MAY EXPERIENCE A LOSS HE INDICATED THAT THE COMPANY IS HUNKERING DOWN FOR A PERIOD OF SLUGGISH REVENUE GROWTH A BUSINESS PLAN RECENTLY SUBMITTED TO THE BOARD FOR THE YEAR ENDING SEPT 30 1994 ASSUMES JUST 5 REVENUE GROWTH FOR THE PERIOD HE NOTED HOWEVER MR TREYBIG SAID THAT THE PLANNED COSTCUTTING COULD MAKE FISCAL 1994 A YEAR OF RECORD EARNINGS PER SHARE 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 9307290025 930729 WEDNESDAY'S MARKETS STOCK PRICES END MIXED BONDS GAIN DOW DECLINES 1201 ON EARNINGS REPORTS DOLLAR WEAKENS A BIT BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKS FINISHED MIXED AS GLOOMY EARNINGS REPORTS HURT BIG ISSUES BUT LEFT SMALL COMPANY SHARES UNSCATHED BOND PRICES ROSE AND THE DOLLAR ENDED SLIGHTLY LOWER THE DOW JONES INDUSTRIAL AVERAGE SLID 1201 POINTS TO 355345 AND STANDARD & POOR'S 500STOCK INDEX SLUMPED 105 TO 44719 BUT THE NASDAQ COMPOSITE INDEX GAINED 459 TO 70559 THANKS TO A REBOUND IN SOFTWARE SUPERSTAR MICROSOFT AND A LEAP IN MEDCO CONTAINMENT SERVICES THE MAILORDER PRESCRIPTION DRUG COMPANY AGREED TO BE ACQUIRED BY MERCK FOR 6 BILLION PROMPTING INVESTORS TO DRIVE MEDCO STOCK UP 4 3/8 TO 34 1/8 JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SAID STOCK INVESTORS ARE UNNERVED BY RECENT NEWS REPORTS THAT PRESIDENT CLINTON'S BUDGET PACKAGE WILL HAVE A TOUGH TIME GETTING THROUGH CONGRESS IN ADDITION MR MCALINDEN SAID THAT BOND MARKET VOLATILITY UNDERCUT INVESTORS' CONFIDENCE BOND PRICES FELL IN THE MORNING ON AN UNEXPECTEDLY STRONG DURABLE GOODS REPORT THEY RALLIED LATER IN RESPONSE TO NEWS THAT MR CLINTON IS CONSIDERING ISSUING AN EXECUTIVE ORDER TO CONTROL THE GROWTH OF ENTITLEMENT SPENDING THE STOCK MARKET IS PUTTING IN A VERY CREDIBLE PERFORMANCE SAID MR MCALINDEN AS SOON AS THE SMOKE CLEARS THE DOW IS POISED TO GO A LOT HIGHER SOME ANALYSTS THINK ONE CATALYST FOR A STOCK RALLY COULD COME FROM OVERSEAS POSSIBLY TODAY IN EUROPE GERMANY'S CENTRAL BANK LOWERED A KEY MARKET INTEREST RATE YESTERDAY LEADING TO SPECULATION THAT IT WILL CUT OFFICIAL RATES TODAY THE RATE CUT TOOK PRESSURE OFF EUROPE'S BESIEGED EXCHANGE RATE MECHANISM A JOINT FLOAT OF NINE CURRENCIES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 011 TO 10721 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2698 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 975 DECLINED AND 924 ADVANCED BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE MORE THAN 3/8 POINT OR OVER 375 FOR EACH 1000 FACE AMOUNT TO YIELD 665 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17175 MARKS AND 10580 YEN COMPARED WITH 17278 MARKS AND 10608 TUESDAY 9307290024 930729 DEPOSIT INSURANCE GAS ON S&L FIRE BY ROBERT E LITAN NEARLY THREE YEARS AGO AFTER VIRTUALLY ALL THE DAMAGE FROM THE SAVINGSANDLOAN MESS HAD BEEN DONE CONGRESS CREATED A BIPARTISAN COMMISSION TO EXAMINE HOW IT CAME ABOUT AND HOW TO PREVENT A SIMILAR CATASTROPHE IN THE FUTURE I WAS PRIVILEGED TO BE APPOINTED TO THAT COMMISSION WHICH RELEASED ITS REPORT THIS WEEK SO MUCH HAS BEEN WRITTEN ABOUT THIS SUBJECT THAT IT MAY BE DIFFICULT TO OVERCOME THE S&L FATIGUE FROM WHICH THE PRESS THE PUBLIC AND POLICY MAKERS UNDERSTANDABLY MAY BE SUFFERING THE POPULAR VIEW OF THE S&L CRISIS IS THAT IT WAS CREATED AND AGGRAVATED BY UNSCRUPULOUS THRIFT EXECUTIVES THEIR LAWYERS ACCOUNTANTS AND APPRAISERS AND BY VENAL POLITICIANS AND REGULATORS WHO FAILED TO CATCH THE CROOKS BEFORE THEY COULD RAID THE TREASURY WHICH ULTIMATELY BACKED THRIFT DEPOSITS ALL THAT IS TRUE AND WE SAY SO IN OUR REPORT BUT GREEDY WRONGDOING ALONE WAS NOT THE MAIN CAUSE OF THIS CRISIS IN FACT IN OUR WORK WE ESTIMATED THAT FRAUD ACCOUNTED FOR NO MORE THAN 10 TO 15 OF TOTAL LOSSES THERE ARE MORE IMPORTANT LESSONS TO BE LEARNED BEYOND REGULATING BETTER THE NEXT TIME AND THEY ARE THE FOCUS OF OUR REPORT AT BOTTOM THE S&L DEBACLE WAS A FAILURE IN PUBLIC POLICY ONE THAT COULD HAVE BEEN LARGELY AVOIDED TO BEGIN TO UNDERSTAND WHY THINK OF THE S&L CATASTROPHE AS A GIANT FINANCIAL FIREBALL FUELED BY GASOLINE IGNITED BY SEVERAL MATCHES AND FANNED FROM THE OUTSIDE BY WIND GUSTS OF SEVERAL TYPES DEPOSIT INSURANCE WAS THE GASOLINE FEW OF THE MANY RISKS THAT S&L OPERATORS TOOK COULD HAVE BEEN FINANCED HAD DEPOSITS NOT BEEN GUARANTEED BY THE FEDERAL GOVERNMENT TRULY UNINSURED DEPOSITORS WOULD HAVE BEEN FAR MORE CAREFUL WITH THEIR MONEY THEY WOULD HAVE INSISTED ON ACCURATE FINANCIAL DATA FROM THE INSTITUTIONS NOT THE PHONY FINANCIAL STATEMENTS ENCOURAGED BY FEDERAL REGULATORY POLICY SIMPLY PUT IN THE ABSENCE OF INSURANCE HIGHRISK S&LS COULD NOT HAVE GROWN LIKE GASOLINE DEPOSIT INSURANCE STILL SERVES A USEFUL PURPOSE PROVIDED IT IS TREATED WITH CARE AND PUT IN A PROPER CONTAINER INSULATED FROM SPARKS OR MATCHES THE THRIFT SITUATION WAS ENTIRELY DIFFERENT UNTIL THE 1980S THRIFTS WERE REQUIRED BY LAW TO BORROW SHORT LEND LONG THAT IS TO INVEST IN LONGTERM FIXEDRATE MORTGAGES FUNDED BY DEPOSITS WITH MUCH SHORTER MATURITIES MOREOVER THE INTEREST RATES THRIFTS COULD PAY DEPOSITORS WERE SUBJECT TO A REGULATORY CEILING BOTH THE HUNT AND FINE COMMISSIONS IN THE MID1970S POINTED OUT THAT THIS STRUCTURE WAS AN ACCIDENT WAITING TO HAPPEN IF INTEREST RATES SOARED ABOVE THE CEILINGS DEPOSITORS WOULD LEAVE IN ADDITION THRIFTS WERE FORCED TO VIOLATE WHAT WAS EVEN THEN A WIDELY RECOGNIZED FINANCIAL PRINCIPLE THAT IT IS PRUDENT TO DIVERSIFY AND NOT TO HOLD VIRTUALLY ALL ONE'S ASSETS IN ONE TYPE OF FINANCIAL INSTRUMENT IN THIS CASE MORTGAGES THE RECOMMENDED SOLUTIONS WERE SIMPLE PHASE OUT INTERESTRATE CEILINGS ALLOW THRIFTS TO EXTEND ADJUSTABLERATE MORTGAGES AND ALLOW THRIFTS TO INVEST IN OTHER TYPES OF LOANS LIKE BANKS THE COMMISSIONS WERE IGNORED AND THE ACCIDENT DID HAPPEN IN THE LATE 1970S AND EARLY 1980S INTEREST RATES ROSE WELL INTO DOUBLE DIGITS FORCING CONGRESS IN 1980 TO BEGIN THE PHASEOUT OF INTERESTRATE CEILINGS TO PREVENT A MASSIVE DEPOSIT RUN TO THE NEWLY CREATED UNREGULATED MONEY MARKET FUNDS BUT WHEN THE CEILINGS WERE LIFTED THRIFTS HAD TO PAY DEPOSITORS FAR HIGHER INTEREST RATES THAN THE RATES THEY WERE STUCK COLLECTING ON THEIR OLD FIXEDRATE MORTGAGES BY 1981 THE INDUSTRY WAS INSOLVENT BY MORE THAN 100 MILLION INSTEAD OF CONSTRAINING THE GROWTH OF INSOLVENT AND UNDERCAPITALIZED THRIFTS REGULATORS AND CONGRESS THREW A SERIES OF MATCHES ONTO THE DEPOSITINSURANCE GASOLINE IN PARTICULAR REGULATORS GUTTED CAPITAL RULES AND INTRODUCED PHONY ACCOUNTING RULES WHILE THE NUMBER OF SUPERVISORS WAS SLASHED THESE ACTIONS INVITED CURRENT AND NEW OWNERS OF THRIFTS WITH NOTHING TO LOSE GIVEN FEDERAL INSURANCE OF THE DEPOSITS AND EVERYTHING TO GAIN TO GAMBLE RECKLESSLY ABOUT ONETHIRD OF THE INDUSTRY THEN DID SO PUSHING THE ASSETS OF WHAT WAS THEN AN INSOLVENT INDUSTRY UP BY OVER 50 BETWEEN 1982 AND 1985 MEANWHILE CONGRESS GAVE THE INDUSTRY NEW ASSET POWERS THAT UNDER THE DIFFERENT CIRCUMSTANCES OF THE 1960S AND 1970S THEY COULD AND WOULD HAVE USED IN MODERATION BUT IN THE 1980S WITHOUT THE SUPERVISION AND THE INHIBITIONS OF CAPITAL STANDARDS THESE POWERS WERE ABUSED FINALLY SEVERAL GUSTS MADE THE FIRE GROW HOTTER THE TEXAS ECONOMY COLLAPSED TAX POLICY MADE A MESS OUT OF COMMERCIAL REAL ESTATE ENCOURAGING TOO MUCH INVESTMENT IN 1981 AND THEN ABRUPTLY PULLING THE PLUG IN 1986 FOR YEARS BOTH THE EXECUTIVE BRANCH AND CONGRESS FAILED TO GIVE THE OLD THRIFT INSURER THE FSLIC ENOUGH FINANCIAL WATER TO PUT OUT THE FIRE THE JOB REMAINED UNDONE THE COST GREW SO WHAT ARE THE LESSONS FOR THE FUTURE IF THE COUNTRY WANTS SAFE FINANCIAL GASOLINE THAT IS DEPOSIT INSURANCE IT MUST PROVIDE SAFE CONTAINERS TO DO THAT WE SHOULD GRADUALLY MOVE TO A SYSTEM UNDER WHICH DEPOSIT INSURANCE IS PROVIDED ONLY TO MONETARY SERVICE COMPANIES OR MSCS THAT INVEST IN SAFE LIQUID ASSETS THAT CAN BE READILY MARKED TO MARKET SUCH AS OBLIGATIONS OF THE FEDERAL GOVERNMENT AND QUASIGOVERNMENTAL ISSUES FANNIE MAE AND FREDDIE MAC AND HIGHLY RATED COMMERCIAL PAPER BECAUSE THEIR ASSETS WOULD BE SAFE ALL THE DEPOSITS IN THESE MONETARY SERVICE COMPANIES WOULD BE INSURED NOT JUST THOSE UNDER 100000 FOR THE SAME REASON ANY FIRM FINANCIAL OR NONFINANCIAL COULD OWN AN MSC AND INTEGRATE THAT MSC INTO ITS OVERALL OPERATIONS ONE SINGLE STROKE WOULD END THE SEEMINGLY ENDLESS BATTLE OVER EXPANDED BANK POWERS MANY WILL NO DOUBT VIEW THE MSC PROPOSAL A VARIATION OF WHICH I HAVE ADVOCATED IN THE PAST AS A RADICAL SUGGESTION BUT OTHER COMMISSIONERS SHARED THE SAME CONCLUSION PERHAPS OUT OF THE COMMONSENSE VIEW THAT IF THE GOVERNMENT WANTS TO PROVIDE A TOTALLY SAFE INVESTMENT FOR INDIVIDUALS THEN THE GOVERNMENT SHOULD NOT ALSO BE SUBJECT TO THE RISK OF FUTURE FINANCIAL CONFLAGRATIONS WHAT WOULD EVENTUALLY HAPPEN TO BANKS AND THRIFTS AS WE KNOW THEM TODAY FOR STARTERS THERE WOULD NO LONGER BE SEPARATE CHARTERS OR SEPARATE REGULATORS FOR THE TWO TYPES OF INSTITUTIONS MOREOVER MOST INSTITUTIONS THEMSELVES WOULD SPLIT INTO TWO ENTITIES ONE OFFERING INSURED DEPOSITS LARGELY CHECKING ACCOUNTS WITH ACCESS TO THE FEDERAL RESERVE'S PAYMENT SYSTEM AND THE OTHER FUNDED BY CLEARLY MARKED UNINSURED DEPOSITS OR COMMERCIAL PAPER JUST AS FINANCE COMPANIES LIKE GE CAPITAL ARE FUNDED TODAY IN THE PROCESS BANK SUPERVISION WOULD BE VASTLY SCALED BACK THE MARKETS WOULD DISCIPLINE THE LENDERS AND REGULATORS WOULD BE REQUIRED ONLY TO CHECK THAT THE MSCS ARE INVESTING IN THE PERMISSIBLE SAFE ASSETS AND NOT LENDING TO PARENTS OR AFFILIATES A SUITABLE TRANSITION WOULD HELP CUSHION THE IMPACT OF OUR SUGGESTION ON THE AVAILABILITY OF CREDIT TO SMALL BUSINESSES AND CONSUMERS WHOSE COST COULD GO UP MODESTLY BECAUSE CREDIT WOULD NO LONGER BE SUBSIDIZED BY DEPOSIT INSURANCE BUT IN THE LONG RUN MANY BORROWERS COULD BENEFIT SINCE THEIR LENDERS WOULD BE FREE OF THE INCREASINGLY ONEROUS AND UNEVEN SYSTEM OF BANK SUPERVISION AND THUS WOULD FACE LOWER COSTS I PERSONALLY BELIEVE THAT SMALLER BANKS SAY THOSE BELOW 500 MILLION IN ASSETS WITHOUT READY ACCESS TO THE COMMERCIAL PAPER MARKET MIGHT BE EXEMPTED FROM ANY MSC REQUIREMENT THUS THEIR INSURED FUNDS WOULD STILL BE AVAILABLE TO FUND LOANS TO SMALL BUSINESSES AND CONSUMERS OF COURSE THE CURRENT SYSTEM OF BANK REGULATION WOULD STILL BE REQUIRED FOR THESE INSTITUTIONS SOME MAY ARGUE THAT THE FEDERAL RESERVE WOULD STILL BE OBLIGATED TO BAIL OUT ANY LARGE UNINSURED COMMERCIAL LENDER AND SO THE TAXPAYER RISK WOULD NOT BE ELIMINATED UNDER OUR PROPOSAL BUT THIS OBJECTION IGNORES THE FACT THAT PRECISELY BECAUSE THEY ARE NOT INSURED COMMERCIAL FINANCE COMPANIES TODAY ARE FAR BETTER CAPITALIZED THAN BANKS AND THUS MUCH LESS LIKELY TO FAIL AND IF ONE DID THE FED NEED NOT BAIL IT OUT SIMPLY TO PROTECT THE ENTIRE COMMERCIAL PAPER MARKET INSTEAD THE FED WOULD NEED ONLY DO WHAT IT DID AFTER THE OCTOBER 1987 STOCKMARKET CRASH EXPAND THE MONEY SUPPLY AND LOWER INTEREST RATES ON GOVERNMENT BONDS THE WIDER SPREAD BETWEEN THE RATES ON SUCH BONDS AND COMMERCIAL PAPER WOULD BRING BUYERS BACK TO THE COMMERCIAL PAPER MARKET AND PREVENT ANY RUN FINALLY ALL INSTITUTIONS THAT ISSUE FEDERAL GUARANTEES OR INSURANCE SHOULD BE REQUIRED TO ASSESS AND REPORT ON THE PERVERSE INCENTIVES BUILT INTO THEIR OWN PROGRAMS IF THEY GET INTO TROUBLE THEY SHOULD BE ABLE TO QUENCH THE FIRE BEFORE IT GETS OUT OF CONTROL BY BEING ABLE TO BORROW FROM THE TREASURY WITHOUT CONGRESSIONAL AUTHORIZATION MR LITAN A FELLOW AT THE BROOKINGS INSTITUTION WAS A MEMBER OF THE NATIONAL COMMISSION ON FINANCIAL INSTITUTION REFORM RECOVERY AND ENFORCEMENT 9307290023 930729 SOME NEW YORK TAXIS TO INSTALL PAY PHONES NEW YORK TAXI RIDERS CAUGHT IN TRAFFIC MAY BE ABLE TO HANDLE THEIR APPOINTMENTS BY CELLULAR TELEPHONE NYNEX MOBILE COMMUNICATIONS A UNIT OF NYNEX CORP AND CELLULAR PAYPHONES A UNIT OF CELLULAR COMMUNICATIONS & TECHNOLOGIES INC SAID THEY HAVE BEGUN INSTALLING PAY PHONES IN ABOUT 200 CABS THE CELLULAR PHONES ARE ACTIVATED WITH CREDIT CARDS AND INCLUDE A PANIC BUTTON THAT LETS A CABBIE REACH 911 EMERGENCY OPERATORS THE COMPANIES WILL CHARGE 175 A MINUTE FOR LOCAL CALLS WITH ADDITIONAL FEES FOR LONG DISTANCE THE PHONES WILL BE WIRED TO ALLOW ONLY OUTGOING CALLS SO IT WON'T BE POSSIBLE TO ACTUALLY CALL A CAB SO TO SPEAK CAB OWNERS WILL RECEIVE A MONTHLY FEE BASED ON USAGE OF THE PHONES 9307290022 930729 SCIENTIFICATLANTA CONTRACT ATLANTA SCIENTIFICATLANTA INC SAID IT WAS AWARDED A MULTIMILLION DOLLAR CONTRACT FROM ORBIT COMMUNICATIONS CO FOR A CONSUMER DIGITAL VIDEO COMPRESSION SATELLITE NETWORK THAT WOULD DISTRIBUTE VIDEO PROGRAMMING IN THE MIDDLE EAST SCIENTIFICATLANTA A DESIGNER AND MAKER OF CABLE TELEVISION ELECTRONICS AND SATELLITE NETWORKS SAID THE VALUE OF THE INITIAL EQUIPMENT AND SERVICES WAS 65 MILLION WITH ADDITIONAL PURCHASES OF 60 MILLION BASED ON THE EXPECTED ROLLOUT OF THE ORBIT COMMUNICATIONS DIRECTTOHOME PAY TELEVISION SERVICE 9307290021 930729 REVIEW & OUTLOOK ASIDES FREE TO TERRORIZE AGAIN MANHATTAN'S UPPER WEST SIDERS ARE BRACING FOR THE RETURN OF THE WILD MAN OF WEST 96TH STREET WHO IS DUE TO BE RELEASED FROM A STATE MENTAL HOSPITAL TODAY FOR YEARS LARRY HOGUE HAS STALKED WEST 96TH STREET SMOKING CRACK AND THREATENING PEDESTRIANS WITH A BASEBALL BAT IN 1988 HE WAS ARRESTED FOR SHOVING A GIRL IN FRONT OF A TRUCK THIS TIME HIS DOCTORS SAY HOGUE HAS PROMISED TO LIVE WITH HIS SON IN CONNECTICUT AND TO GIVE HIM CONTROL OF HIS 3000AMONTH VETERAN'S DISABILITY PENSION WEST SIDERS ARE SKEPTICALWITH GOOD REASON HOGUE HAS BEEN ARRESTED OR HOSPITALIZED MORE THAN 40 TIMES AND EACH TIME HE HAS ENDED UP BACK ON 96TH STREET WHERE HE HAS EXERCISED HIS RIGHT TO HARASS RESIDENTS 9307290020 930729 BUSINESS BRIEF BORDEN REGISTERS 65 EARNINGS DROP HALVES DIVIDEND STUDIES SALE OF UNITS NEW YORK BORDEN INC PLAGUED BY DISAPPOINTING RESULTS IN ITS DAIRY AND FOOD BUSINESSES POSTED A 65 PLUNGE IN SECONDQUARTER EARNINGS AND SLASHED ITS DIVIDEND IN HALF THE NEWS BATTERED BORDEN'S SHARES WHICH CLOSED AT 15875 DOWN 1375 OR 8 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BORDEN'S CHIEF EXECUTIVE OFFICER ANTHONY S D'AMATO ALSO HINTED THAT THE COMPANY WILL BE SHEDDING SOME BUSINESSES WE ARE INTENSIFYING A REVIEW OF BORDEN'S BUSINESSES HE SAID THE OBJECTIVE IS TO DEFINE THE BUSINESSES WE WANT TO BE IN AND IDENTIFY THOSE WE WILL NOT RETAIN THE FOOD AND HOUSEHOLD PRODUCTS COMPANY KNOWN FOR SUCH DAIRY PRODUCTS AS EAGLE BRAND CONDENSED MILK REPORTED SECONDQUARTER NET OF 277 MILLION OR 20 CENTS A SHARE COMPARED WITH 793 MILLION OR 55 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES SANK 6 TO 166 BILLION BORDEN REDUCED ITS QUARTERLY DIVIDEND TO 15 CENTS A SHARE FROM 30 CENTS WHICH IT HAD PAID SINCE THE SECOND QUARTER OF 1992 THE DIVIDEND IS PAYABLE SEPT 1 TO SHARES OF RECORD AUG 13 ALTHOUGH ANALYSTS HAVE COME TO ANTICIPATE UNIMPRESSIVE RESULTS FROM BORDEN WHICH HAS BEEN STRUGGLING TO RESTRUCTURE ITS FARFLUNG FOOD BUSINESSES THE SECOND QUARTER PROVED EVEN MORE DISAPPOINTING THAN THEY HAD EXPECTED LAST FALL THEY SAID WE WOULD SEE BETTER RESULTS IN THE NEAR FUTURE NOTED GOLDMAN SACHS & CO ANALYST NOMI GHEZ WHO HAS SLASHED HER FULLYEAR EARNINGS ESTIMATES TO 95 CENTS A SHARE FROM 145 THE FUTURE JUST DOESN'T SEEM TO BE MATERIALIZING WHILE A DIVIDEND CUT WAS WIDELY EXPECTED MANY ANALYSTS WERE IN THE DARK AS BORDEN STOPPED MAKING EARNINGS PREDICTIONS EARLIER THIS YEAR WITH THE EXCEPTION OF INTERNATIONAL CONSUMER PRODUCTS WHICH HELD STEADY EXCLUDING THE EFFECT OF ACQUISITIONS AND DIVESTMENTS SALES AND OPERATING EARNINGS DECLINED THROUGHOUT BORDEN'S MAJOR FOOD BUSINESSES OPERATING EARNINGS DECLINED MODESTLY ON A SLIGHT SALES GAIN IN BORDEN'S PACKAGING AND INDUSTRIAL PRODUCTS UNIT MR D'AMATO BLAMED THE COMPANY'S TROUBLES ON INTENSE COMPETITION THROUGHOUT THE FOOD INDUSTRY EFFORTS BY RETAILERS TO LOWER INVENTORY LEVELS AND BORDEN'S OWN ATTEMPTS TO END TRADE LOADING PRACTICES TRADE LOADING OVERLOADS INVENTORY ON RETAILERS AT THE END OF A SALES PERIOD TO INFLATE RESULTS THESE TRENDS AND CHANGES IN BUSINESS PRACTICE ARE EXPECTED TO CONTINUE TO ADVERSELY AFFECT BORDEN'S OPERATING RESULTS IN THE THIRD AND FOURTH QUARTERS HE WARNED THE PROMISE TO EXPLORE THE SALE OF ASSETS WASN'T ENOUGH TO PACIFY WALL STREET AFTER TWO YEARS D'AMATO SHOULD KNOW WHAT BUSINESSES HE WANTS TO KEEP AND WHAT HE DOESN'T GRUMBLED JOHN MCMILLIN ANALYST AT PRUDENTIAL SECURITIES INC 9307290019 930729 LAW WASHINGTON LAWYER RETURNING TO ROOTS JOINS MUDGE ROSE BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LEONARD GARMENT AN OLD HAND HERE PLANS TO SHOW AN OLDLINE NEW YORK LAW FIRM HOW BUSINESS IS DONE INSIDE THE BELTWAY MR GARMENT COUNSEL TO THE PRESIDENT DURING RICHARD NIXON'S FINAL DAYS IN OFFICE AND ONE OF WASHINGTON'S MOST INFLUENTIAL LAWYERS IS LEAVING WASHINGTONBASED DICKSTEIN SHAPIRO & MORIN TO HELP BUILD UP THE WASHINGTON OFFICE OF THE NEW YORK FIRM MUDGE ROSE GUTHRIE ALEXANDER & FERDON THE SWITCH IS A HOMECOMING MR GARMENT JOINED A PREDECESSOR TO MUDGE ROSE COMING OUT OF LAW SCHOOL IN 1949 AND SPENT MORE THAN 20 YEARS AT THE FIRM IT WAS THERE THAT HE FIRST WORKED WITH MR NIXON MR GARMENT JOINED DICKSTEIN FROM MUDGE ROSE IN 1980 AND HAD A STRING OF HIGHPUBLICITY POLITICAL CASES SUCH AS STEERING EDWIN MEESE THROUGH CONFIRMATION HEARINGS AS ATTORNEY GENERAL AMID CHARGES OF FINANCIAL IMPROPRIETIES MORE RECENTLY MR GARMENT HAS REPRESENTED SUCH COMPANIES AS TOSHIBA CORP AS WELL AS THE FUGITIVE FINANCIER MARC RICH MR GARMENT 69 YEARS OLD DESCRIBED HIS MOVE AS A KIND OF SENTIMENTAL JOURNEY HE SAID IT IS A PLACE WHERE I STARTED AND IT IS NOT A BAD PLACE TO WIND UP A CAREER IN THE LAW HE SAID THAT IN RECENT YEARS HE HAD FOCUSED ABOUT HALF HIS TIME AT THE DICKSTEIN FIRM ON PRO BONO AND PERSONAL BUSINESS VENTURES AND WAS LOOKING FORWARD TO DOING LESS LITIGATING AND MORE HEADHUNTING IN HIS NEW JOB MR GARMENT WILL OVERSEE A PLANNED EXPANSION OF THE WASHINGTON OFFICE OF MUDGE ROSE A 300LAWYER NEW YORK FIRM THAT CURRENTLY HAS ABOUT 20 LAWYERS IN WASHINGTON THE FIRM IS CONSIDERED TO HAVE A STRONG INTERNATIONAL TRADE PRACTICE HERE AND IS INTERESTED IN EXPANDING ITS LITIGATION AND GOVERNMENTAL AFFAIRS GROUPS AMONG OTHERS MUDGE ROSE SAID YESTERDAY THAT MR GARMENT WAS BRINGING WITH HIM A FORMER PENTAGON OFFICIAL I LEWIS LIBBY WHO RECENTLY REJOINED DICKSTEIN AFTER A STINT AS US DEPUTY UNDERSECRETARY OF DEFENSE FOR POLICY ALSO RICHARD K EATON CHIEF OF STAFF TO SEN DANIEL PATRICK MOYNIHAN SINCE 1991 AND A MUDGE ROSE LAWYER IN THE 1980S REJOINED THE FIRM AS A PARTNER ANGELO ARCADIPANE MANAGING PARTNER OF 180LAWYER DICKSTEIN SAID MR GARMENT HAD LEFT ON GOOD TERMS AND ADDED WE APPRECIATE HIS DESIRE TO BECOME INVOLVED IN FIRM MANAGEMENT PARTICULARLY AT MUDGE ROSE WHERE HE SPENT SO MANY YEARS BUILDING HIS CAREER 9307290018 930729 NORTHWEST AIR EMPLOYEES APPROVE CONCESSION PLAN ST PAUL MINN THE INTERNATIONAL ASSOCIATION OF MACHINISTS SAID ITS MEMBERS AT NORTHWEST AIRLINES APPROVED 346 MILLION IN WAGE AND BENEFIT CONCESSIONS BY A 4TO1 MARGIN THE UNION WHICH REPRESENTS NORTHWEST'S GROUND PERSONNEL SAID THAT WITH ALMOST ALL OF THE VOTES COUNTED 14858 WERE IN FAVOR AND 3545 AGAINST THE PACKAGE THAT WILL CUT WAGES BY AN AVERAGE 11 THE CONCESSIONS ARE A KEY PART OF THE AIRLINE'S EFFORTS TO CUT LABOR COSTS BY 886 MILLION OVER THREE YEARS THE VOTE AT NORTHWEST A UNIT OF WINGS HOLDINGS INC WAS EXPECTED DESPITE THE UNION'S OVERWHELMING REJECTION OF A PREVIOUS PACKAGE IN JUNE WITH A REVISED AGREEMENT AND THE THREAT OF A BANKRUPTCYLAW FILING MANY WORKERS SAID DURING MONDAY'S VOTE THAT THEY WERE CHANGING THEIR VOTES FROM NO TO YES NORTHWEST'S PILOTS HAVE ALREADY APPROVED CONCESSIONS AND FLIGHT ATTENDANTS REPRESENTED BY THE TEAMSTERS UNION PLAN TO ANNOUNCE RESULTS OF THEIR MAILBALLOT VOTE TOMORROW IN RETURN THE AIRLINE'S EMPLOYEES COULD GET UP TO 375 OF THE AIRLINE'S STOCK OR A PAYBACK IN CASH WITH INTEREST WITHIN 10 YEARS 9307290017 930729 TRAVEL MORE AGENCIES SELL CREDENTIALS TO PERK SEEKERS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL TRAVEL AGENTS HAVE ALWAYS ENTERED THE BUSINESS AT LEAST PARTLY FOR THE PERKS NOW A GROWING NUMBER OF TRAVELERS ARE PAYING AS MUCH AS 5000 EACH TO BECOME AGENTS FOR THE SOLE PURPOSE OF GETTING DISCOUNTS ON AIRLINE TICKETS AND HOTEL ROOMS AN ESTIMATED 25 TRAVEL AGENCIES SELL CREDENTIALS UP FROM A DOZEN A COUPLE OF YEARS AGO MANY OF THE AGENCIES RECRUIT PEOPLE WITH THE PROMISE OF INEXPENSIVE AND GLAMOROUS TRAVEL AND WITHOUT REQUIRING THEM TO DO ANY ACTUAL WORK AS AGENTS BUT BEING A PSEUDOAGENT DOESN'T ALWAYS PRODUCE THE PROMISED BENEFITS AND MANY INDUSTRY OFFICIALS SAY AGENT DISCOUNTS ARE OVERRATED AND CAN BE HAD WITHOUT PAYING THE FEES PSEUDOAGENTS VIOLATE INDUSTRY REGULATIONS THOUGH NOT ANY LAWS THE TWO AIRLINEINDUSTRY GROUPS THAT ACCREDIT AGENCIES REQUIRE THAT AGENTS SELL TRAVEL FOR AT LEAST 20 HOURS A WEEK AND RECEIVE AT LEAST 7000 A YEAR IN COMMISSIONS BUT THE GROUPS LACK THE ENFORCEMENT POWER AND RESOURCES TO ENSURE THAT ONLY LEGITIMATE AGENTS USE THE AGENCIES' ACCREDITATION NUMBERS WHICH GIVE ACCESS TO DISCOUNTS PSEUDOAGENTS HAVE EXISTED FOR YEARS MANY TRAVEL AGENTS ADD TO THEIR EMPLOYEE LISTS THE NAMES OF FRIENDS AND RELATIVES WHO CAN THEN GET TRAVEL DISCOUNTS SOME ADD DOCTORS LAWYERS OR OTHER PROFESSIONALS IN RETURN FOR THEIR SERVICES WHAT'S DIFFERENT THESE DAYS IS THE GROWING NUMBER OF AGENCIES ENTICING WOULDBE AGENTS WITH TRAVEL COMEONS AND CHARGING FEES IN EXCHANGE FOR MEMBERSHIP IN THEIR FIRMS WORLD VIEW INTERNATIONAL IN LA JOLLA CALIF FOUNDED TWO YEARS AGO IS AN ACCREDITED TRAVEL AGENCY THAT CHARGES 495 FOR OUTSIDEAGENT STATUS IN A PROMOTIONAL BROCHURE REPLETE WITH PICTURES OF FIJI ATHENS AND OTHER DESTINATIONS WORLD VIEW PROMISES THAT ITS AGENTS HAVE ACCESS TO EIGHTDAY MEXICAN CRUISES FOR 349 FREE ADMISSION TO THEME PARKS AND AUTOMATIC RENTALCAR UPGRADES A PROMOTIONAL AUDIO TAPE DESCRIBES DISCOUNTS FOR PERSONAL TRAVEL INCLUDING A ROUNDTRIP LONDONLOS ANGELES AIR FARE OF 289 THE TAPE AND BROCHURE BOTH MAKE SCANT REFERENCE TO AGENTS SELLING TRAVEL HISTORICALLY MOST PEOPLE ENTER THE TRAVEL BUSINESS FOR THE PERKS AND NOT TO GET RICH WORLD VIEW CHAIRMAN TIMOTHY C DONLAN SAID LAST YEAR IN A NEWS RELEASE ON HIS COMPANY EVEN THOUGH OUR AGENTS AGREE IN WRITING THAT THEY'LL PROMOTE CREATE AND GENERATE TRAVEL BECAUSE OF THEIR INDEPENDENT STATUS WE HAVE LITTLE CONTROL IN AN INTERVIEW HOWEVER MR DONLAN SAYS HIS CLOSELY HELD COMPANY'S MORE THAN 2000 OUTSIDE AGENTS ALL SELL TRAVEL THEY GENERATE 1 MILLION A MONTH IN TRAVEL REVENUE AND HAVE BEEN A BOON TO THE INDUSTRY HE SAYS ONCE OUR OUTSIDE AGENTS START TO TRAVEL THEY BECOME SO EXCITED ABOUT IT THAT THEY TELL THEIR FRIENDS AND RELATIVES THEN THEY TOO WANT TO TRAVEL BUT SOME TRAVEL PROFESSIONALS SAY MANY INDEPENDENT AGENTS WHO BUY THEIR WAY INTO THE BUSINESS SELL VERY LITTLE TRAVEL THE MAJORITY ARE IN IT FOR THE DISCOUNTS AND PERKS SAYS GEORGE SANCHEZ PRESIDENT OF MENA TOURS & TRAVEL INC IN CHICAGO HIS AGENCY WRITES TICKETS FOR ABOUT 20 OUTSIDE AGENTS OF INDEPENDENT TRAVEL AGENCIES OF AMERICA IN ROCHESTER NY BUT THROUGH INTERVIEWS SCREENS OUT INDEPENDENT'S OUTSIDE AGENTS WHO DON'T SELL TRAVEL INDEPENDENT TRAVEL'S PRESIDENT DAVID MUELLER DENIES THAT HIS COMPANY'S 5000 OUTSIDE AGENTS JOIN FOR THE BENEFITS BUT ACKNOWLEDGES THERE IS NO MINIMUM AMOUNT OF TRAVEL THE AGENTS MUST SELL TO STAY WITH THE COMPANY IT CHARGES 2870 UP FRONT PLUS ANNUAL FEES OF 40 TRAVEL INDUSTRY OFFICIALS AREN'T HAPPY ABOUT THE GROWING RANKS OF PSEUDOAGENTS THOUGH AGENTS LEGITIMATE OR OTHERWISE MAKE UP LESS THAN 05 OF ALL TRAVELERS DISCOUNTS GIVEN TO PSEUDOAGENTS COST SUPPLIERS MONEY AT A TIME WHEN MANY SEGMENTS OF THE TRAVEL INDUSTRY ARE AWASH IN RED INK IT'S A REPREHENSIBLE PRACTICE UNDER ANY CIRCUMSTANCE BUT PARTICULARLY NOW WHEN THE AIRLINE INDUSTRY IS LOSING SO MUCH MONEY SAYS AL BECKER A SPOKESMAN FOR AMR CORP'S AMERICAN AIRLINES AGENCIES THAT SELL MEMBERSHIPS SAY THE PRACTICE LETS THEM GENERATE SIGNIFICANT REVENUE THEY TAKE A SHARE OF THE COMMISSIONS PRODUCED BY THE OUTSIDE AGENTS PLUS THE UPFRONT FEES WHILE GIVING INDIVIDUALS THE OPPORTUNITY TO RUN THEIR OWN BUSINESSES AND REDUCE PERSONAL TRAVEL COSTS IN MOST CASES OUTSIDE AGENTS ARE OFFERED TRAINING MATERIALS TOUR INFORMATION AND OTHER SUPPORT THE IDEA IS TO HAVE PEOPLE IN THE NEIGHBORHOOD SELL TRAVEL AND BRING IT CLOSER TO THE CONSUMER SAYS RICHARD JENSEN VICE PRESIDENT OF INDUSTRY RELATIONS FOR MURDOCK TRAVEL MANAGEMENT INC A BIG SALT LAKE CITY AGENCY THAT LAST YEAR BEGAN SELLING OUTSIDE MEMBERSHIPS FOR 2500 UP FRONT PLUS 100 A MONTH IN FEES TRADITIONALLY TRAVEL AGENCIES HAVE HIRED AGENTS WHO WORK ON COMMISSION GENERATING BUSINESS ON THEIR OWN CRITICS SAY SELLING MEMBERSHIPS IS AKIN TO ASKING A CAR SALESMAN TO PAY MONEY TO SELL AUTOS THE PRACTICE IS A SCAM SAYS BETH PAZIENZA PRESIDENT OF UNIGLOBE FULL SERVICE TRAVEL INC IN WASHINGTON WHOSE OUTSIDE AGENTS DON'T PAY FEES MANY INDUSTRY OFFICIALS SAY PEOPLE WHO PAY TO BECOME OUTSIDE AGENTS MUST BE IN IT FOR THE BENEFITS BECAUSE EVEN LEGITIMATE OUTSIDE AGENTS WITH YEARS OF EXPERIENCE MAKE LITTLE MONEY MARY LOU WOJCIK A FORMER CHICAGO TEACHER WHO HAS WORKED IN TRAVEL FOR YEARS SELLS ABOUT 100000 IN TRAVEL ANNUALLY AS A FULLTIME AGENT OUT OF HER HOME BUT AFTER SPLITTING COMMISSIONS WITH HER AGENCY SHE CLEARS ABOUT 5000 A YEAR SHE TAKES ADVANTAGE OF SOME PERKS BUT SAYS I'M IN THIS BECAUSE I LOVE THE INDUSTRY AND I LOVE TO LEARN SOME PEOPLE WHO BECOME OUTSIDE AGENTS FOR THE TRAVEL BENEFITS ARE DISAPPOINTED A SAN FRANCISCO BUSINESSMAN PAID 575 TO AN AGENCY IN THE CITY IN PART BECAUSE A BROCHURE PROMISED DISCOUNTED TRAVEL BUT HE QUICKLY FOUND THAT HIS AGENCY CREDENTIALS WEREN'T ACCEPTED AT SEVERAL HIGHPRICED HOTELS IN CALIFORNIA AND CANCUN THE BUSINESSMAN WHO ASKS NOT TO BE NAMED SAYS HE DEMANDED AND RECEIVED A REFUND FROM THE AGENCY IN FACT MANY PEOPLE IN THE INDUSTRY SAY TRAVEL AGENT DISCOUNTS ARE HARDLY WORTH PAYING FOR AIRLINES OFFER 75 OFF FULLFARE TICKETS BUT THAT REPRESENTS LITTLE SAVING OFF DISCOUNTED ADVANCEPURCHASE FARES MANY TRAVEL AGENCIES THAT PROMOTE THE PERKS SUCH AS WORLD VIEW BUY DISCOUNT INTERNATIONAL TICKETS FROM WHOLESALERS BUT SO DO HUNDREDS OF OTHER AGENCIES THAT SELL THEM TO THE PUBLIC AND WHILE HOTELS CRUISES AND OTHER SUPPLIERS OFFER TRAVEL AGENT DISCOUNTS AND UPGRADES THEY OFFER SIMILAR BENEFITS TO INDIVIDUALS THROUGH TRAVEL CLUBS AND OTHER ORGANIZATIONS PEOPLE ARE SENDING IN MONEY THINKING THEY'RE GETTING SOMETHING THAT THEY'RE NOT SAYS PAUL BESSEL PRESIDENT OF THE ASSOCIATION OF RETAIL TRAVEL AGENTS A TRADE ORGANIZATION THESE OUTFITS ARE GETTING RICH OFF THE GULLIBILITY OF OTHERS 9307290016 930729 BUSINESS BRIEF CONTROL DATA SYSTEMS INC SECONDQUARTER PROFIT BEATS FORECASTS STOCK JUMPS 10 CONTROL DATA SYSTEMS INC SPUN OFF FROM CERIDIAN CORP A YEAR AGO SURPASSED ANALYSTS' EXPECTATIONS IN THE SECOND QUARTER EVEN THOUGH REVENUE FELL 13 SENDING ITS STOCK UP 10 THE ARDEN HILLS MINN COMPUTER SYSTEMS AND INTEGRATION COMPANY EARNED 43 MILLION OR 32 CENTS A SHARE IN THE SECOND QUARTER BEATING THE 23CENT AVERAGE OF ANALYSTS' EXPECTATIONS REVENUE FELL TO 1149 MILLION FROM 1323 MILLION IN THE 1992 SECOND QUARTER CONTROL DATA HAD A LOSS OF 1375 MILLION OR 1293 A SHARE AFTER 130 MILLION OF RESTRUCTURING AND OTHER CHARGES RELATED TO ITS SPINOFF A SPOKESWOMAN SAID REVENUE FROM EUROPE WHERE CONTROL DATA DOES 40 OF ITS BUSINESS FELL ABOUT 35 FROM THE SECOND QUARTER OF 1992 BUT US AND ASIAN REVENUES WERE UP COSTCUTTING INCLUDING IN RESEARCH AND DEVELOPMENT AND ADMINISTRATION ENHANCED PROFITABILITY SHE SAID IN NATIONAL OVERTHECOUNTER TRADING CONTROL DATA GAINED 1125 TO 12375 9307290015 930729 COMMODITIES SOYBEAN FUTURES CONTINUE TO PLUNGE AS WEATHER IMPROVES IN THE MIDWEST STALLING EARLIER RALLY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SOYBEAN FUTURES PRICES PLUNGED FOR A FOURTH CONSECUTIVE DAY AS IMPROVING MIDWEST WEATHER STALLED A BULL MARKET PREVIOUSLY DRIVEN BY THE DRENCHING RAINS OF SPRING AND EARLY SUMMER AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY FELL THROUGH THE PSYCHOLOGICALLY IMPORTANT 7ABUSHEL LEVEL SETTLING AT 690 A BUSHEL DOWN 12 CENTS ON THE DAY THE PRICE OF THE NOVEMBER CONTRACT HAS PLUNGED NEARLY 9 SINCE MIDJULY WHEN IT REACHED A HIGH OF 7575 A BUSHEL THE 7 LEVEL IS IMPORTANT BECAUSE BREAKING THROUGH IT MAY BE A HARBINGER OF ADDITIONAL PRICE DECLINES CORN AND WHEAT FUTURES PRICES ALSO RETREATED AS TRADERS CONCLUDED THAT A DRY SPELL COULD IMPROVE THE PROSPECTS OF THE CORN AND WHEAT CROPS IN SATURATED AREAS OF THE WESTERN CORN BELT CORN FOR DECEMBER DELIVERY WAS DOWN 35 CENTS TO 2465 A BUSHEL WHILE THE ACTIVELY TRADED DECEMBER WHEAT CONTRACT FELL 7 CENTS TO 323 A BUSHEL WEATHER FORECASTERS WERE CALLING FOR AN EXTENDED DRY PERIOD OVER RAINDRENCHED PORTIONS OF THE PLAINS AND THE CORN BELT MOST OF THE BELT IS GOING TO BE MUCH DRIER THAN IT HAS BEEN OVER THE NEXT FEW DAYS SAID BRIAN GONSALVES STAFF METEOROLOGIST AT WEATHER SERVICES CORP A PRIVATE FORECASTING COMPANY IN BEDFORD MASS IT WILL BE VERY HELPFUL TO THE AREAS THAT HAVE RECEIVED EXCESSIVE RAINFALL SUCH AS NORTHERN IOWA AND SOUTHERN MINNESOTA THESE ARE AREAS WHERE CROPS ARE STUNTED BUT SURVIVING UNLIKE THE FLOODED AREAS IN CENTRAL IOWA AND MISSOURI WHERE MANY CROPS ARE ALREADY DEAD TRADERS TOOK PARTICULAR NOTE OF A HIGHPRESSURE RIDGE OVER THE SOUTHEASTERN US WHICH COULD MOVE INTO THE VICINITY OF THE CORN BELT EARLY NEXT MONTH SUCH A RIDGE WOULD LIKELY RESULT IN EXTENDED HEAT AND DRYNESS BENEFICIAL TO CROPS YET FORECASTERS WARN THAT THERE IS NO GUARANTEE THE RIDGE WILL MOVE TO THE AREAS THAT NEED IT UNDERLYING THE FOURDAY ROUT IN THE CBOT'S SOYBEAN FUTURES PIT ARE DEEP CONCERNS ABOUT DEMAND FOR US GRAINS ESPECIALLY SOYBEANS FOR INSTANCE A US AGRICULTURE DEPARTMENT EXPORT SALES REPORT THIS WEEK LISTED FOREIGN ORDERS FOR ONLY 2700 METRIC TONS OF SOYBEAN OIL MUCH LOWER THAN USUAL FOR THIS TIME OF YEAR PAKISTAN WHICH EARLIER THIS YEAR SIGNED AN AUTHORIZATION TO BUY 90000 METRIC TONS OF US SOYBEAN OIL HAS YET TO MAKE ITS FIRST PURCHASE UNDER THE AGREEMENT DEMAND IS DRYING UP SIGNIFICANTLY IN SOYBEAN OIL SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO AND IT COULD CONTINUE TO DECLINE UNTIL THE END OF THE CROP YEAR THE USDA SAID ORDERS FOR SOYBEAN MEAL THE OTHER MAJOR BYPRODUCT OF SOYBEANS A COMMODITY USED TO FEED LIVESTOCK AND IN PRODUCTION OF CERTAIN FOODS WERE ONLY 300000 TONS THE PROGNOSIS FOR SOYBEAN MEAL EXPORTS ALSO LOOKS BLEAK CHINA WHICH WAS A NET BUYER OF US SOYBEANS LAST YEAR IS RAISING WHAT IS LIKELY TO BE A RECORD CROP OF SOYBEANS THIS YEAR CHINA USES SOYBEAN OIL DOMESTICALLY BUT IS LIKELY TO EXPORT MUCH OF ITS SOYBEAN MEAL PROVIDING COMPETITION FOR MEAL EXPORTS FROM THE US AND TRADERS ARE WORRIED THAT RUSSIA WHICH WAS EXPECTED TO BUY 540000 TONS OF US SOYBEAN MEAL HASN'T YET DONE SO RUSSIA MIGHT OPT TO WAIT UNTIL THE NEXT CROP YEAR TO BUY THE MEAL WHICH LIKELY WOULD EXERT DOWNWARD PRESSURE ON SOYBEAN FUTURES PRICES FOR THE CURRENT CROP YEAR IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES RALLIED AMID GROWING MARKET CONFIDENCE THAT THE PRECIOUS METAL HAS FOUND SOLID SUPPORT AT PRICES ABOVE 388 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY CLIMBED 220 TO 39340 AN OUNCE ON HEAVY VOLUME TRADERS SAID MOST OF THE DAY'S ACTIVITY WAS TECHNICAL IN NATURE THE RALLIES IN GOLD AND SILVER HAVE TAKEN ON A LIFE OF THEIR OWN SAID DINSA MEHTA CHIEF BULLION TRADER WITH CHASE MANHATTAN BANK BOTH GOLD AND SILVER HAVE ATTAINED A FOLLOWING OF TECHNICAL TRADERS WHO KEEP RUNNING WITH THE TREND SAID MR MEHTA TO THE EXTENT THAT THE TREND DOESN'T BACKTRACK THEY FEEL INCREASINGLY ENCOURAGED TO ACQUIRE FRESH POSITIONS THE LONGTERM UPTREND REMAINS INTACT SCOTT MEYERS A TECHNICAL ANALYST WITH REDEL TRADING IN NEW YORK SAID THE MARKET WAS SHOWING A RENEWED BULLISH STREAK ALBEIT ONE THAT IS LESS AGGRESSIVE THAN IN PREVIOUS MONTHS THE MARKET OPENED UP A BIT HIGHER AND STAYED FIRM RIGHT UP UNTIL THE CLOSE HE SAID I'M STILL BULLISH BUT I EXPECT TO SEE MORE ROUNDS OF PROFITTAKING MR MEYERS AND OTHER ANALYSTS SAID THEY ARE WAITING TO SEE IF AUGUST GOLD SOON CAN BREAK OUT OF ITS RECENT RANGE BETWEEN 388 AND 395 IF AUGUST GOLD GETS ABOVE 400 IT WILL MAKE THE BUYING FAR MORE AGGRESSIVE HE SAID DENISE GIORDANO WHO RUNS PRECIOUS METALS TRADING FOR SWISS BANK IN NEW YORK SAID GOLD'S ABILITY TO STAY ABOVE 390 IN RECENT DAYS SUGGESTS THE MARKET HAS FINALLY ATTRACTED INDIVIDUAL INVESTORS WITH A LONGERTERM PERSPECTIVE MOST OF THE METAL'S RALLY WHICH BEGAN IN LATE MARCH HAS BEEN ATTRIBUTED TO BUYING BY COMMODITY FUNDS WHICH TEND TO INVEST FOR SHORTTERM SPECULATIVE GAINS ENERGY PETROLEUM FUTURES WERE MOSTLY LOWER IN MAINLY TECHNICAL TRADINGENDING OR AT LEAST INTERRUPTING THIS WEEK'S OIL MARKET RALLY AFTER TRADING IN A RELATIVELY NARROW RANGE FOR MUCH OF THE DAY ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE SETTLED 19 CENTS LOWER AT 1823 A BARREL FOR THE SEPTEMBER CONTRACT A SIMILAR WEAKENING TOOK PLACE ON THE INTERNATIONAL PETROLEUM EXCHANGE IN LONDON WHERE THE BRENT BLEND CRUDE FOR SEPTEMBER DELIVERY WAS DOWN 15 CENTS A BARREL TO 1709 BROKERS IN NEW YORK SAID PRICES COULD HAVE DROPPED MORE IF THIS WEEK'S INDUSTRY REPORT ON US OIL INVENTORIES RELEASED LATE TUESDAY HAD BEEN LESS BULLISH THE REPORT SHOWED A SIGNIFICANT DECLINE IN INVENTORIES OF CRUDE OIL IN THE US LAST WEEK WHICH HELPED TO KEEP A FLOOR UNDER PRICES YESTERDAY TRADERS SAID