THE INTERNATIONAL TRADE COMMISSION'S SURPRISE DECISION AGAINST IMPOSING HIGH TARIFFS ON MANY STEEL IMPORTS IS EXPECTED TO TRIGGER AN EFFORT BY THE CLINTON ADMINISTRATION AND US STEEL COMPANIES TO NEGOTIATE SOLUTIONS TO WORLDWIDE TRADE DISPUTES IN AN INTERVIEW US TRADE REPRESENTATIVE MICKEY KANTOR SAID ATTENTION NOW WOULD BE FOCUSED ON MUTILATERAL STEEL NEGOTIATIONS AND BILATERAL DISCUSSIONS WITH THE JAPANESE MR KANTOR ARGUES THAT JAPAN'S CLOSED MARKET PROMPTS FOREIGN STEEL PRODUCERS TO DUMP THEIR PRODUCTS IN THE US AT UNFAIRLY LOW PRICES STEEL EXECUTIVES APPEARED TO SUPPORT SUCH AN APPROACH HANK BARNETTE CHAIRMAN OF BETHLEHEM STEEL CORP CALLED FOR THE ACHIEVEMENT OF A MULTILATERAL STEEL AGREEMENT WHICH WOULD HELP END GOVERNMENT SUBSIDIZATION OF FOREIGN STEEL INDUSTRIES ECONOMISTS AND STEEL USERS MEANWHILE CONTINUED TO CONSIDER THE RAMIFICATIONS OF THE US PANEL'S RULING WHICH REMOVED MOST OF THE TARIFFS THE COMMERCE DEPARTMENT HAD IMPOSED ON STEEL FROM 20 COUNTRIES LAST MONTH THE INCREASED AVAILABILITY OF FOREIGN STEEL COULD ERASE PRICE INCREASES IMPOSED THIS YEAR BY STRUGGLING US STEELMAKERS AND COULD SEND DEFLATIONARY RIPPLES THROUGH THE ECONOMY THEY SAY BUT ECONOMISTS AND STEEL USERS NOTE THAT A STEEL STRIKE AND OTHER FACTORS COULD KEEP PRICES FIRM AND NOT ALL STEEL USERS ARE EUPHORIC PARTICULARLY THOSE WHO RELY ON SOPHISTICATED COATED STEEL FROM JAPAN THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL AN ASSOCIATION OF BUYERS AND IMPORTERS SAID THE ITC'S STANCE WILL MEAN CONTINUED DIFFICULTIES FOR AMERICAN STEELUSING INDUSTRIES DUE TO FURTHER STEEL COST INFLATION EVEN IF US STEEL PRICES STAY FIRM HOWEVER THAT WOULD BE BAD NEWS FOR STEELMAKERS THEY HAVE RAISED PRICES THREE TIMES THIS YEAR PUSHING SPOT STEEL PRICES UP AS MUCH AS 15 BUT PRICES REMAIN BELOW HEALTHY LEVELS SEPARATELY BETHLEHEM STEEL REPORTED THAT ITS SECONDQUARTER LOSS NARROWED TO 53 MILLION OR 18 CENTS A SHARE FROM 517 MILLION OR 76 CENTS A SHARE IN THE YEAREARLIER PERIOD THE NATION'S SECONDLARGEST STEEL MAKER MANAGED A 7 INCREASE IN SHIPMENTS AND SALES CLIMBED 10 TO 112 BILLION FROM 101 BILLION IT ALSO FORECAST A PROFIT ITS FIRST IN THREE YEARS FOR THE THIRD QUARTER THE IMPROVED RESULTS HOWEVER WERE STILL SHORT OF ANALYSTS' FORECASTS AND DID LITTLE TO DISPEL INVESTORS' GLOOM IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BETHLEHEM SHARES FELL 125 CENTS TO 1475 THE STREET ANTICIPATED MORE COST SAVINGS TO FLOW THROUGH SAID CLARENCE MORRISON METALS ANALYST WITH PRUDENTIAL SECURITIES MR MORRISON LOWERED HIS FORECASTS FOR BETHLEHEM'S EARNINGS IN THE THIRD AND FOURTH QUARTERS MOST STEELMAKERS HAVE ALREADY BOOKED HIGHER PRICES FOR THE CURRENT QUARTER BUT AT THE VERY LEAST THE LATEST PRICE INCREASE ANNOUNCED MONDAY BY INLAND STEEL INDUSTRIES INC NOW LOOKS AS IF IT WILL BE DEAD ON ARRIVAL YOU WOULDN'T WANT TO PLACE A HEAVY BET ON THAT STICKING SAID MIKE SIEGEL PRESIDENT OF OLYMPIC STEEL A CLEVELAND STEEL SERVICE CENTER THAT BUYS FROM BIG US MILLS AN INLAND SPOKESMAN SAID THE COMPANY DOESN'T PLAN TO WITHDRAW THE HIGHER PRICE BUT NO OTHER MILL REPORTS JOINING THE INCREASE IN WASHINGTON ADMINISTRATION OFFICIALS SAID THEY ARE TRYING TO TURN THE COMMISSION'S DECISION INTO AN OPPORTUNITY TO PUSH DOMESTIC STEEL COMPANIES TOWARD A MULTILATERAL AGREEMENT SOMETHING THAT HAS EVADED THE ADMINISTRATION AS THE STEELMAKERS PURSUED LITIGATION BUT THE ITC RULINGS CLEARLY STUNNED THEM THEY WERE PREPARING FOR AN ONSLAUGHT OF APPEALS BY THE FOREIGN COMPANIES CHARGED WITH ACCEPTING UNFAIR SUBSIDIES AND DUMPING STEEL IN THE US AT UNFAIRLY LOW PRICES MOREOVER STEEL PRODUCERS IN THE US AREN'T IN THE STRONGEST POSITION TO START SEEKING SETTLEMENTS NOW A BETTER TIME WOULD HAVE BEEN LAST MONTH WHEN THE COMMERCE DEPARTMENT LEVIED HUGE TARIFFS AVERAGING 365 AGAINST FOREIGN PRODUCERS PAST DUMPING AND ANTISUBSIDY COMPLAINTS DURING THE CARTER REAGAN AND BUSH ADMINISTRATIONS WERE AVERTED WITH NEGOTIATED SETTLEMENTS THAT INCLUDED VOLUNTARYRESTRAINT AGREEMENTS AND TRIGGERPRICE MECHANISMS THAT LIMITED STEEL IMPORTS INTO THE US SUCH RESOLUTIONS DIDN'T MATERIALIZE UNDER MR CLINTON PARTLY BECAUSE DOMESTIC STEEL COMPANIES CONSIDERED LEGAL REMEDIES A BETTER OPTION THAN THE PROPOSALS PRESENTED IN STEEL TRADE TALKS THEIR LEVERAGE WAS HIGHER THEN SAID GARY HORLICK A TRADE LAWYER AT O'MELVENY & MYERS A WASHINGTON FIRM THAT REPRESENTED BELGIUM'S INTERESTS IN THE STEEL CASE NOW IT'S LIKE SOMEONE TRYING TO SETTLE AFTER LOSING A JURY VOTE STEELMAKERS MEANWHILE MOVED TO DISPEL FEARS THAT THEIR FUTURES WOULD BE CLOUDED BY THE RULINGS INLAND CHAIRMAN ROBERT J DARNALL SAID IN A STATEMENT THAT INLAND'S STRATEGY WAS BUILT FROM THE INSIDE AND IS ON TRACK WITH OR WITHOUT FAVORABLE RULINGS SOME INTEGRATED PRODUCERS NOTED THAT MUCH OF THEIR BUSINESS IS IN THE HIGHEND COATED STEEL THAT DID WIN PROTECTION FROM IMPORTS IN 92 OF THE CASES THE ITC IN STRIKING DOWN MORE THAN HALF OF THE 74 CASES APPROVED 97 OF CASES INVOLVING STEEL PLATE BUT ONLY 35 INVOLVING COLDROLLED STEEL AND NONE FOR HOTROLLED STEEL THE INDUSTRY'S STAPLE BUT THAT COATEDSTEEL SEGMENT OF THE INDUSTRY SUFFERS FROM OVERCAPACITY EVEN WITHIN THE US AND HAS BEEN AMONG THE WEAKEST AND PETER MARCUS AN ANALYST AT PAINEWEBBER INC SAID THE PSYCHOLOGY THAT FAVORS BUYERS NOW WILL EXTEND TO MOST PRODUCTS INCLUDING PRICE CONTRACTS WITH BIG CUSTOMERS STEEL BUYERS SEEMED TO AGREE WITH THAT THINKING PRODUCERS IN GENERAL WILL BE RELUCTANT TO TRY TO FLOAT INCREASES SAID ARNOLD W BRADBURD PRESIDENT OF INTERSTATE STEEL SUPPLY CO IN PHILADELPHIA SERVICE CENTERS LIKE MR BRADBURD'S ARE COLLECTIVELY THE LARGEST BUYER OF STEEL AND SOME FACTORS MAY YET KEEP PRICES FIRM EVEN IN THOSE US PRODUCTS HURT IN THE RULINGS THREE BIG STEELMAKERS BETHLEHEM STEEL NATIONAL STEEL CORP AND ARMCO INC'S ARMCO STEEL ALL HAVE CONTRACTS EXPIRING SATURDAY AND ARE FURIOUSLY NEGOTIATING NEW ACCORDS WITH THE UNITED STEELWORKERS UNION THERE IS ALSO THE POSSIBILITY THAT US STEELMAKERS OVERSTATED THE DAMAGE DONE BY IMPORTS IN THE FIRST PLACE IN THAT CASE THEY MAY BE ABLE TO MUSTER THE DISCIPLINE TO KEEP PRICES FIRM EVEN WITH IMPORTS IN THE MARKET THERE'S NO REASON FOR THEM TO GO EFFECTIVELY BACKWARDS MR SIEGEL SAID OF THE US MILLS 9307290013 930729 MERCK TO PURCHASE MEDCO IN 6 BILLION TRANSACTION ALLIANCE OF DRUG MAKER DISTRIBUTOR IS EXPECTED TO SPUR SIMILAR MERGERS BY MICHAEL WALDHOLZ AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN A BUSINESS MARRIAGE CERTAIN TO SHAKE UP THE PHARMACEUTICAL INDUSTRY MERCK & CO THE WORLD'S LARGEST DRUG COMPANY AGREED TO BUY MEDCO CONTAINMENT SERVICES INC THE NATION'S LARGEST MARKETER OF DISCOUNT PRESCRIPTION MEDICINES FOR 6 BILLION IN STOCK AND CASH THE ACQUISITION MAKES MERCK BY FAR THE BIGGEST AND PERHAPS ONLY INTEGRATED PRODUCER AND DISTRIBUTOR OF PHARMACEUTICALS THE TRANSACTION IF APPROVED BY FEDERAL REGULATORS IS EXPECTED BY INDUSTRY PEOPLE TO TRIGGER A WAVE OF ALLIANCES AND MERGERS AMONG DRUG MAKERS AND OTHER PRESCRIPTIONDRUG MARKETERS IT ALSO IS CERTAIN TO INTENSIFY PRICE COMPETITION AMONG DRUG MAKERS WHICH IN THE PAST YEAR HAS PUSHED DOWN DRUG COMPANY REVENUES PROFIT GROWTH AND SHARE PRICES UNDER TERMS OF THE AGREEMENT FINALIZED YESTERDAY MORNING AFTER ALLNIGHT NEGOTIATIONS MEDCO SHAREHOLDERS WILL RECEIVE TAXFREE 39 A SHARE HOLDERS CAN ELECT TO TAKE THE OFFER IN CASH OR AS 121401 MERCK SHARES FOR EACH MEDCO SHARE PROVIDED 60 OF MEDCO SHARES ARE CONVERTED TO MERCK STOCK MERCK SAID IT WILL PAY FOR THE ACQUISITION BY TAKING ON 24 BILLION IN NEW DEBT AND ISSUING NEW STOCK A TOP MERCK OFFICIAL SAID THE ACQUISITION SHOULD DILUTE MERCK'S EARNINGS BY BETWEEN 5 AND 10 IN 1994 AND 1995 IN COMPOSITE BIG BOARD TRADING MERCK'S SHARES FELL 1375 TO 3075 AS ANALYSTS WORRIED ABOUT THE NEARTERM IMPACT OF MEDCO'S STEEP PRICE TAG ON PROFIT MEDCO'S SHARES IN OVERTHECOUNTER TRADING WERE BID 34125 UP 4375 OR NEARLY 15 MERCK HAS 114 BILLION SHARES OUTSTANDING MEDCO HAS 155 MILLION SHARES OUTSTANDING SOME ANALYSTS SAY A COMBINED MERCK/MEDCO WILL BE A HEALTHCARE JUGGERNAUT MOST ESPECIALLY CAUSING HEADACHES FOR LONGTIME MERCK COMPETITORS SUCH AS BRISTOLMYERS SQUIBB CO SMITHKLINE BEECHAM PLC AND GLAXO HOLDINGS PLC THIS IS GOING TO LEAVE THE OTHER BIG DRUGMAKERS WITH THEIR PANTS DOWN SAID BARBARA RYAN AN ANALYST WITH ALEX BROWN & CO IT PUTS MERCK IN A BETTER COMPETITIVE POSITION THAN ANYONE ELSE AND THE OTHER DRUG COMPANIES ARE GOING TO BE FORCED TO CREATE SIMILAR PARTNERSHIPS KNOWN BY SOME AS THE WALMART OF PILLS MEDCO MANAGES THE PRESCRIPTIONDRUG BENEFIT PLANS FOR MANY CORPORATE AND GOVERNMENT EMPLOYEES THROUGH A DISCOUNT MAILORDER BUSINESS AND RETAIL PHARMACY INSURANCE PROGRAM IT GENERATED 22 BILLION IN SALES IN THE 1992 CALENDAR YEAR RECENTLY MEDCO HAS BECOME PARTICULARLY EFFECTIVE IN WRINGING SHARP DISCOUNTS FROM DRUG MAKERS AND SIGNING UP CORPORATE CUSTOMERS BY PASSING ON THE PRICE SAVINGS MERCK MEANWHILE HAS ONE OF THE BROADEST LINES OF BIGSELLING PRESCRIPTION MEDICINES IT IS EXPECTED TO USE MEDCO'S MARKETING CLOUT TO INCREASE SALES OF ITS PRODUCTS AND TO REDUCE MERCK'S COSTS BY ALLOWING THE WHITEHOUSE STATION NJ DRUG MAKER TO SCALE BACK ITS SALES FORCE AND MANUFACTURING OPERATIONS NOW MEDCO WILL HAVE ADVANTAGEOUS PURCHASING FROM MERCK ON MEDICATION FOR A SIGNIFICANT PORTION OF CLIENTS' NEEDS SAYS LEONARD YAFFE AN ANALYST AT MONTGOMERY SECURITIES THAT WILL LET MEDCO OFFER A VERY ATTRACTIVE FORMULARY TO PLAN SPONSORS A FORMULARY IS A LIST OF APPROVED DRUGS CARRIED BY A PHARMACY GENERALLY AVAILABLE AT DISCOUNT PRICES BUT SOME MEDCO AND MERCK COMPETITORS WERE CRITICAL OF THE MERGER AND SOME ANALYSTS SAID THEY FEARED THE TRANSACTION MIGHT RUN AFOUL FEDERAL ANTITRUST LAW I'M CERTAIN MERCK'S ADVERSARIES ARE GOING TO PRESS THESE CONCERNS VERY STRONGLY ONE ANALYST SAID TWO OF MEDCO'S LEADING COMPETITORS SAY PROBLEMS COULD ARISE FROM HAVING A SINGLE DRUG COMPANY OWN A MAJOR DISTRIBUTOR THEY ARE PARTICULARLY WORRIED THAT MEDCO MIGHT FAVOR MERCK PRODUCTS TO THE POINT THAT MEDCO'S CREDIBILITY WITH EMPLOYERS AS A DISCOUNT PROVIDER WOULD BE HURT MAJOR PLAYERS IN THE PHARMACY COSTMANAGEMENT BUSINESS HAVE POSITIONED THEMSELVES AS INDEPENDENT MANAGEDCARE COMPANIES THAT TRY TO GET THE BEST MEDICATION FOR PATIENTS AT THE BEST PRICE SAYS HENRY BLISSENBACH PRESIDENT OF DIVERSIFIED PHARMACEUTICAL SERVICES INC A MEDCO RIVAL THAT IS A UNITED HEALTHCARE CORP UNIT WE'RE NOT INFLUENCED BY ANY PHARMACEUTICAL COMPANY NOW YOU COULD HAVE A SITUATION WHERE MEDCO BECOMES A WAREHOUSE FULL OF MERCK PRODUCTS MR BLISSENBACH'S COMPANY COVERS 11 MILLION PEOPLE ABOUT ONETHIRD THE SIZE OF MEDCO HE QUESTIONS WHETHER MEDCO WILL CHANGE FROM A MANAGEDCARE COMPANY TO JUST A DISTRIBUTION ARM OF MERCK AND HE SAYS THAT IN COMPETING AGAINST MEDCO FOR NEW ACCOUNTS IF CLIENTS DON'T BRING UP SUCH ISSUES ON THEIR OWN WE'LL BE HAPPY TO REMIND THEM SIMILAR CONCERNS WERE RAISED EARLIER THIS MONTH BY TOP EXECUTIVES AT MCKESSON CORP'S PCS UNIT ANOTHER BIG MEDCO RIVAL PCS OFFICIALS YESTERDAY DECLINED TO COMMENT DESPITE SUCH SKEPTICISM INVESTORS YESTERDAY BID UP THE STOCK PRICES OF OTHER COMPANIES IN THE MANAGEDCARE PHARMACY BUSINESS DIAGNOSTEK INC CLIMBED 75 CENTS A SHARE OR 77 TO 1050 A SHARE WHILE CAREMARK INTERNATIONAL INC JUMPED 150 A SHARE OR 93 TO 17625 IF MERCK IS WILLING TO PAY 6 BILLION FOR MEDCO THAT PUTS A NEW VALUATION ON US SAID A CAREMARK SPOKESMAN CAREMARK LAST YEAR GOT ABOUT 40 OF ITS 14 BILLION REVENUE FROM ITS MANAGEDCARE PHARMACY OPERATIONS MERCK'S INTEREST IN MEDCO MONTVALE NJ SURFACED TWO WEEKS AGO WHEN MERCK'S PRESIDENT RICHARD J MARKHAM MYSTERIOUSLY RESIGNED CITING PERSONAL REASONS SOME COMPANY INSIDERS SPECULATED MR MARKHAM HAD BEEN OVERLY AGGRESSIVE IN PRESSING MEDCO'S PURCHASE BUT AT A MEETING FOR ANALYSTS AND ANOTHER FOR THE PRESS AT A MIDTOWN MANHATTAN HOTEL YESTERDAY MERCK'S CHAIRMAN AND CHIEF EXECUTIVE P ROY VAGELOS SAID THE DRUG MAKER HAD DECIDED MONTHS AGO THAT IT NEEDED TO ACQUIRE OR DEVELOP A DRUG BENEFIT SERVICE COMPANY DR VAGELOS SAID HE FORMED A TASK FORCE WITHIN MERCK LAST AUGUST TO EXPLORE HOW BEST TO KEEP MERCK'S PROFIT GROWING EVEN AS LARGE BUYERS OF MEDICINES SUCH AS MEDCO BIG HOSPITAL CHAINS AND MANAGEDCARE PLANS WERE FORCING THE FIRSTEVER PRICE COMPETITION AMONG DRUG MAKERS DR VAGELOS SAID THE TASK FORCE DECIDED THAT MERCK NEEDED TO MAKE A REVOLUTIONARY CHANGE IN ITS BUSINESS BY FORGING CLOSE TIES WITH THE INSURERS BUYERS AND USERS OF PRESCRIPTION DRUGS UP UNTIL NOW MERCK HAD FOCUSED MOST ITS MARKETING EFFORTS ON DOCTORS THE ACQUISITION GIVES MERCK A TREASURE TROVE OF MARKETING INFORMATION ON MILLIONS OF PEOPLE THAT MERCK HADN'T ANY WAY OF GETTING BEFORE SAID CHRISS STREET AN ANALYST WITH HIS OWN CORONA DEL MAR CALIF INVESTMENT CONCERN MEANWHILE MARTIN WYGOD MEDCO'S CHAIRMAN CHIEF EXECUTIVE AND FOUNDER HAD BEEN SEARCHING FOR A LARGE CORPORATE PARTNER TO HELP MEDCO EXPAND MR WYGOD SAID ACQUISITION TALKS INTENSIFIED IN RECENT MONTHS WHILE THE TWO COMPANIES WERE NEGOTIATING A NEW SALES CONTRACT HE SAID MEDCO HAS RECEIVED FEELERS FROM OTHER DRUG MAKERS INTERESTED IN FORMING ALLIANCES OR MERGING UNDER TERMS OF THE DEAL MR WYGOD WHO CURRENTLY OWNS ABOUT TWO MILLION MEDCO SHARES WILL BECOME A MEMBER OF MERCK'S BOARD HE SAID HE WILL INVEST ABOUT 32 MILLION IN ACQUIRING MERCK SHARES AND PLANS TO CONTINUE RUNNING MEDCO AS A WHOLLY OWNED SUBSIDIARY OF MERCK THE DEAL DOESN'T REQUIRE APPROVAL FROM MERCK'S SHAREHOLDERS BUT DOES NEED MEDCO HOLDERS' ASSENT BUT WHILE MERCK AND MEDCO WHICH PROVIDES PHARMACY BENEFITS FOR 33 MILLION AMERICANS HAVE BIG IDEAS FOR A COMBINED COMPANY THEY FIRST MAY FACE SOME TOUGH SELLING WITH EXISTING CUSTOMERS THIS MONTH BENEFITS SPECIALISTS AT TWO MEDCO CUSTOMERS THE STATE OF CALIFORNIA AND KEYSTONE HEALTH PLAN EAST PHILADELPHIA SAID THEY WERE UNEASY ABOUT HOW MEDCO WOULD FUNCTION UNDER MERCK'S WING ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE 9307290012 930729 WHO'S NEWS RALLY INC RALLY INC LOUISVILLE KY D RANDY LANEY WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR EXECUTIVE VICE PRESIDENT OF THIS DRIVEIN HAMBURGER CHAIN COMPANY MR LANEY 39 YEARS OLD SUCCEEDS DON MOORE 38 MR MOORE WILL CONTINUE IN ACCOUNTING WITH RALLY MR LANEY IS RALLY'S FIRST SENIOR EXECUTIVE VICE PRESIDENT 9307290011 930729 GERSTNER'S NONVISION FOR IBM RAISES A MANAGEMENT ISSUE BY MICHAEL W MILLER AND LAURIE HAYS STAFF REPORTERS OF THE WALL STREET JOURNAL WITH HIS FIRST WORDS ABOUT HIS AMBITIOUS TURNAROUND EFFORT AT INTERNATIONAL BUSINESS MACHINES CORP LOUIS V GERSTNER JR MADE AN ASTONISHING PRONOUNCEMENT THERE'S BEEN A LOT OF SPECULATION AS TO WHEN I'M GOING TO DELIVER A VISION OF IBM HE SAID THIS WEEK ANNOUNCING A MASSIVE 89 BILLION PACKAGE OF CUTBACKS THE LAST THING IBM NEEDS RIGHT NOW IS A VISION INSTEAD HE SAID IBM NEEDS TEXTBOOK BLOCKING AND TACKLING LOWER COSTS AND BETTER MARKET FOCUS IN EVERY DIVISION HIS STATEMENT RAISED A PIVOTAL QUESTION ABOUT MODERN MANAGEMENT THAT TRANSCENDS IBM CAN A GOOD CORPORATE MECHANIC FIX ANY COMPANY EVEN WITH NO EXPERIENCE IN ITS INDUSTRY AND NO STRATEGIC VISION FOR ITS FUTURE MR GERSTNER IS THE CONSUMMATE CORPORATE MECHANIC HE BEGAN HIS CAREER AT THE FOUNTAINHEAD OF THE BUSINESSASREPAIRABLEMACHINE RELIGION THE CONSULTING FIRM MCKINSEY & CO THEN HE HOPPED TO THE TOP RANKS OF THREE UTTERLY DIFFERENT COMPANIES AMERICAN EXPRESS CO RJR NABISCO HOLDINGS CORP AND NOW IBM SOME MANAGEMENT EXPERTS FIND MR GERSTNER'S VIEW OF IBM HOPELESSLY LIMITED IT'S AN ACCOUNTANT'S ANSWER NOT A LEADER'S SAYS ROBERT GILBREATH HEAD OF THE CHANGE MANAGEMENT DIVISION OF PHILIP CROSBY ASSOCIATES INC WINTER PARK FLA IF HE'S TRYING TO GET HIS PEOPLE TO TURN THE COMPANY AROUND AND BE INNOVATIVE AND FAST HE'S GOT TO GIVE THEM ANOTHER REASON BUT AT THE TOP RANKS OF OTHER HIGHTECH COMPANIES SEVERAL OTHER EXECUTIVES SHARE MR GERSTNER'S DISDAIN FOR BROAD STATEMENTS OF LONGTERM DIRECTION NOBODY IN THIS BUSINESS CAN HAVE A SOPHISTICATED TECHNOLOGICAL VISION SAYS CHIEF EXECUTIVE ANDREW GROVE OF INTEL CORP ONE OF THE MOST SUCCESSFUL TECHNOLOGY COMPANIES EVER THIS IS A BIGTIME FISHING EXPEDITION YOU CAST A BUNCH OF HOOKS IN THE WATER SOME GET NIBBLED ON SOME CATCH FISH SOME YOU REEL IN SOME YOU LET GO MICROSOFT CORP'S CHAIRMAN BILL GATES WIDELY HAILED AS ONE OF THE COMPUTER INDUSTRY'S SMARTEST LONGTERM THINKERS STRUCK A SIMILAR NOTE IN AN INTERVIEW EARLIER THIS YEAR BEING A VISIONARY IS TRIVIAL HE SAID BEING A CEO IS HARD ALL YOU HAVE TO DO TO BE A VISIONARY IS GIVE THE OLD MIPS TO THE MOON' SPEECH EVERYTHING WILL BE EVERYWHERE EVERYTHING WILL BE CONVERGED EVERYBODY KNOWS THAT THAT'S DIFFERENT FROM BEING THE CEO OF A COMPANY AND SEEING WHERE THE PROFITS ARE MR GERSTNER WHO CAME TO IBM ONLY IN APRIL MAY WITH MORE TIME ARTICULATE A BROADER STRATEGIC PLAN HE ALSO HINTED THAT HE DIDN'T WANT TO TIP HIS HAND TO COMPETITORS FOR NOW HE DECLINED TO ANSWER EVEN SUCH BASIC QUESTIONS AS WHETHER HE SEES IBM ULTIMATELY AS A HARDWARE COMPANY SOFTWARE COMPANY OR BOTH GIVE US SOME PATIENCE WILL YOU HE SAID AFTER A LUNCH SPENT FENCING WITH REPORTERS WHO PRESSED HIM ABOUT IBM'S FUTURE MARKETS HIS ONLY ANSWER YOU'RE GOING TO HAVE TO MEASURE OUR SUCCESS BY OUR PROFITS AND OUR SHAREHOLDER GAIN MR GERSTNER OFFERED ONE CLUE TO HIS THINKING ABOUT IBM WHEN ASKED TO NAME A COMPANY HE CONSIDERED A MANAGEMENT ROLE MODEL SOON AFTER HE CAME TO IBM HE SAID HE SPENT SIX HOURS WITH PERHAPS THE MOST SUCCESSFUL APOSTLE OF THE PUREMANAGEMENT APPROACH GENERAL ELECTRIC CO'S JOHN WELCH I SAID JACK YOU'VE RUN A 60 BILLION COMPANY I'M ABOUT TO LET'S TALK' MR GERSTNER RECALLED BUT HE QUICKLY NOTED THAT THE GE MANAGEMENT MODEL PICKING A STRONG MANAGER AND LETTING HIM RUN AN AUTONOMOUS BUSINESS MAY NOT APPLY TO IBM GE'S GRAB BAG OF BUSINESSES INCLUDING JET ENGINES INVESTMENT BANKING AND REFRIGERATORS DON'T HAVE STRATEGIC TIES WITH EACH OTHER IBM'S BUSINESSES HARDWARE SOFTWARE PRINTERS DISK DRIVES NETWORKS MICROCHIPS ARE SO INTERTWINED MR GERSTNER SAID IN OTHER HIGHTECH TURNAROUNDS CHARTING A COHERENT STRATEGIC VISION EARLY ON PROVED TO BE A CRUCIAL STEP COMPUTER MAKER UNISYS CORP LIKE IBM WAS HEAVILY FOCUSED ON BIG PROPRIETARY MAINFRAME COMPUTERS IN 1989 THEN IT BEGAN POSTING LOSSES THAT WOULD TOTAL 24 BILLION BY 1991 TAKING THE COMPANY CLOSE TO BANKRUPTCY UNISYS ABANDONED HALF ITS MAINFRAME PRODUCTS AND DEVOTED ITSELF INSTEAD TO OPEN SYSTEMS THAT CONNECT WITH OTHER MAKERS' MACHINES AND TO A CONSULTINGSERVICES BUSINESS IT HOPES WILL PROVIDE THE COMPANY'S FUTURE GROWTH IT HAS SINCE REPORTED SEVEN STRAIGHT QUARTERS OF PROFITS AFTER 1990 I BECAME CONVINCED WE HAD TO EMBARK ON A TOTAL REMAKE OF THE COMPANY SAID UNISYS CHAIRMAN JAMES UNRUH IN AN INTERVIEW BEFORE THIS WEEK'S IBM CUTS WHAT I CAME TO BELIEVE WAS THAT THERE HAD BEEN A FUNDAMENTAL SHIFT IN WHERE VALUE IS CREATED AT WANG LABORATORIES INC A COMPUTER GIANT NOW EMERGING FROM BANKRUPTCY CHIEF EXECUTIVE JOSEPH TUCCI SAYS HIS TURNAROUND PLAN DEPENDS ON A SHARP STRATEGIC FOCUS SOFTWARE AND SERVICES FOR OFFICES BUT HE ADDS WITH OUR SIZE YOU CAN DO THAT WITH IBM'S SIZE I DON'T KNOW HOW YOU CAN HAVE ONE VISION I THINK THEY NEED SEVERAL VISIONS OTHERS MAKE EXACTLY THE OPPOSITE POINT THE BIGGER THE ORGANIZATION THE MORE YOU NEED A VISION AND AN ARCHITECTURE TO ALLOW PEOPLE TO MAKE DECISIONS THAT ARE ALL COMPATIBLE SAYS SCOTT MCNEALY CHAIRMAN OF SUN MICROSYSTEMS INC IBM'S HOTTEST RIVAL IN WORKSTATIONS MR GERSTNER CLEARLY SIDES WITH MR TUCCI ON THIS QUESTION WE'RE WORKING VERY HARD ON A NUMBER OF STRATEGIC ISSUES HE SAID THIS WEEK THEY'RE ALL NOT GOING TO COME TOGETHER AT ONE MASTERFUL TIME WHEN WE CAN ANNOUNCE A UNIFIED STRATEGY THEY'RE GOING TO ROLL OUT OVER TIME AS THEY'RE READY FOR EXAMPLE HE SAID HE WANTS TO CONTINUE IBM'S PUSH TO MAKE ITS MICROCHIP BUSINESS A BIGGER FORCE HISTORICALLY IBM MADE CHIPS EXCLUSIVELY FOR ITS OWN USE LIKE VIRTUALLY EVERY OTHER HIGHTECH CEO HE ALSO TALKED ABOUT THE IMPORTANCE OF MULTIMEDIA COMPUTING THOUGH THAT SOUNDED A LITTLE FUZZY TO SOME IN THE INDUSTRY UNIVERSITY OF MICHIGAN BUSINESS PROFESSOR NOEL TICHY SAYS IT MAY BE ADEQUATE FOR NOW FIRST ENERGY HAS TO GO INTO STOPPING THE HEMORRHAGING HE SAYS THE PATIENT HAS TO SURVIVE BEFORE YOU CAN PUT HIM ON A WORKOUT SCHEDULE BUT I THINK GERSTNER HAS TO BE ABLE TO ARTICULATE THE VISION WITHIN MONTHS 9307290010 930729 REVIEW & OUTLOOK EDITORIAL THE NEWEST ENTITLEMENT WITH ONE HAND CONGRESS IS GETTING READY TO SOCK US ALL WITH NEW TAXES TO REDUCE THE DEFICIT WITH THE OTHER HAND IT'S OOZING SANCTIMONY TO ENACT NEW SPENDING PROGRAMS NOT MUCH WORRYING THAT THEY'LL INCREASE THE DEFICIT UNDER THE RUBRIC OF NATIONAL SERVICE FOR EXAMPLE THE SENATE IS ON THE VERGE OF ENACTING WHAT WILL INEVITABLY GROW INTO A BIG NEW MIDDLECLASS ENTITLEMENT TECHNICALLY NATIONAL SERVICE WILL BE FUNDED ANNUALLY LIKE OTHER DISCRETIONARY PROGRAMS BUT IF MR CLINTON KEEPS HIS PROMISE TO MAKE ROOM FOR EVERYBODY WHO WANTS IN THE PROGRAM BECOMES A DE FACTO ENTITLEMENT IT WOULD CREATE A BUNCH OF NEW FEDERALLY FUNDED JOBS FOR KIDS 17 AND OLDER THEY'D GET A PAYCHECK HEALTH BENEFITS AND TUITION VOUCHERS WORTH UPWARD OF 20000 A YEAR IT LOOKS TO US AS IF SEDUCING KIDS AWAY FROM CLASSROOMS AND REAL JOBS WOULD SERVE MOSTLY TO ROPE THEM INTO A CODEPENDENCY RELATIONSHIP WITH WASHINGTON BUT IT HAS A WARM AND FUZZY APPEAL TO SOME VOTERS AND SENATORS BOB DOLE AND THE SENATE REPUBLICANS ARE PLAYING HAMLET OVER WHETHER TO FILIBUSTER THIS NEW ENTITLEMENT LITTLE DETAILS SUCH AS COSTS GET LOST EVEN ON THE REPUBLICAN SIDE OF THE AISLE LET ALONE AMONG DEMOCRATS PANTING AT MORE TAX REVENUE NATIONAL SERVICE IS TARGETED DIRECTLY AT KIDS WHO ARE NERVOUSLY SCANNING THE WANTADS FOR THAT FIRST JOB WHAT MR CLINTON IS DANGLING SOUNDS LIKE PRETTY GOOD PAY TO A 17YEAROLD HE SPEAKS AIRILY OF SENDING THE KIDS OUT TO HELP THE POLICE AND COMBAT HOMELESSNESS IN REALITY THIS MEANS WHATEVER WORK THE NATIONAL SERVICE BUREAUCRATS CAN SCARE UP AFTER FIRST MAKING SURE NOT TO STEP ON THE TOES OF ORGANIZED LABOR OR TRESPASS ON THE TURF OF 19 MILLION FEDERAL STATE AND LOCAL EMPLOYEES IN OTHER WORDS THE KIDS WILL BE PUT TO WORK DOING JOBS THAT EVERYBODY AGREES AREN'T WORTH DOING THE SORRY RECORD OF PREVIOUS FEDERAL MAKEWORK PROGRAMS DOESN'T PERMIT MUCH OPTIMISM BEFORE IT WAS ZEROEDOUT BY RONALD REAGAN CETA PAID TEENAGERS TO ATTEND PICNICS AND MEET SOCIETY'S UNMET NEED FOR NUDE SCULPTURE CLASSES IT'S WELL KNOWN THAT MANY CETA OFFICES SAW THEIR CHARGES ONLY WHEN IT WAS TIME TO HAND OUT THE PAYCHECKS THE KIDS IN TURN LEARNED CONTEMPT FOR PRODUCTIVE WORK AND CYNICISM ABOUT GOVERNMENT MR CLINTON WOULD RECREATE CETA ON A GRAND SCALE CYCLING 150000 YOUNGSTERS A YEAR THROUGH NATIONAL SERVICE BY 1997 THERE'D BE JOBS FOR AN ARMY OF BUREAUCRATS TO RIDE HERD ON THEM AND FOR ANOTHER ARMY OF OUTSIDE LOBBYISTS TO EXPLAIN WHY EVER GREATER FEDERAL FUNDING IS ESSENTIAL YOU CAN BET THAT 535 MEMBERS OF CONGRESS WOULD ALSO BE GETTING INTO THE ACT MAKING SURE THE KIDS ARE DEPLOYED IN THEIR HOME DISTRICTS TO IMPROVE THEIR REELECTION CHANCES ONCE SET IN MOTION THIS MACHINERY MAKES SURE THAT ANY FEDERAL PROGRAM ENJOYS ETERNAL LIFE YOU CAN READ THIS IN THE RELENTLESS UPWARD TRAJECTORY OF FEDERAL SPENDING AND DEFICITS SINCE CONGRESS ABSCONDED WITH THE PRESIDENT'S BUDGETARY AUTHORITY DURING THE WOUNDED DAYS OF THE NIXON ADMINISTRATION THERE'S SOMETHING ESPECIALLY EGREGIOUS ABOUT REENACTING THIS HISTORY WITH YOUNG FOLKS AS FODDER NO DOUBT MANY OF THE KIDS WHO ARE DRAWN TO NATIONAL SERVICE ARE GENUINELY IDEALISTIC AND TRUE THERE'S A SLIGHT NEW DEMOCRATIC TWIST BECAUSE AT LEAST THIS ENTITLEMENT FOR THE UNNEEDY COMES WITH A MEASURE OF RECIPROCAL OBLIGATION BUT KIDS TAKING THEIR FIRST STEPS TOWARD SELFRELIANCE DON'T NEED BIG GOVERNMENT OFFERING ITSELF IN LOCO PARENTIS THE BUREAUCRACY IS SHILLING FOR ITSELF WITH THE IDEA THAT WORK IN THE PUBLIC SECTOR IS SERVICE WHILE SUPPORTING YOURSELF AND PAYING TAXES IN THE PRIVATE SECTOR IS MERELY SELFINDULGENT SUCH PHILOSOPHY ASIDE WHAT ABOUT THE MONEY YES THE PROGRAM STARTS SMALL AS RUNAWAY ENTITLEMENTS ALWAYS DO CLEARLY ITS PORKBARREL DYNAMIC SPELLS GROWTH AND IT ALREADY CARRIES THE SAME HEARTTUGGING PACKAGING THAT JUST LED 400 MEMBERS OF THE HOUSE TO VOTE FOR FLOOD RELIEF INCLUDING 100 A WEEK FOR JOBTRAINING RECIPIENTS BECAUSE SPENDING CAN'T BE CUT THEY KEEP TELLING US TAXES HAVE TO BE HIGHER REGARDLESS OF DAMAGE TO THE ECONOMY HOW CAN MR CLINTON AND THE DEMOCRATS KEEP A STRAIGHT FACE WHILE PONTIFICATING ABOUT THE URGENCY OF RAISING TAXES TO CLOSE THE DEFICIT AND AT THE SAME TIME PEDDLE THE NOTION THAT THE GOVERNMENT SHOULD HIRE THE NATION'S KIDS THE ONLY WAY TO CUT THE DEFICIT IS TO REDUCE SPENDING AND BEFORE YOU CAN START CUTTING OLD SPENDING YOU HAVE TO KEEP YOURSELF FROM CREATING NEW SPENDING THE GOVERNMENT WILL NEVER CUT ITS DEFICIT IF IT KEEPS ASSUMING VAST NEW RESPONSIBILITIES 9307290009 930729 TECHNOLOGY DIGITAL POSTS EARNINGS OF 1132 MILLION FOR 4TH PERIOD ITS FIRST PROFIT IN 2 YEARS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP ENDED A TUMULTUOUS YEAR OF COSTCUTTING AND LAYOFFS BY POSTING NET INCOME OF 1132 MILLION FOR THE FOURTH QUARTER ENDED JULY 3 ITS FIRST PROFIT IN TWO YEARS ANALYSTS WELCOMED THE RETURN TO PROFITABILITY AS EVIDENCE OF A NEW BUSINESS PLAN TAKING HOLD AT DIGITAL ITS RESULTS WERE IN SHARP CONTRAST WITH INDUSTRY GIANT INTERNATIONAL BUSINESS MACHINES CORP WHICH ON TUESDAY ANNOUNCED FURTHER BIG CHARGES AND LAYOFFS INVESTORS HOWEVER LOOKED PAST THE EARNINGS TO FOCUS ON WHETHER THE TURNAROUND WOULD CONTINUE IN THE CURRENT QUARTER ENDING SEPT 30 THE STOCK DRIFTED LOWER ON HEAVY VOLUME TO CLOSE AT 3725 DOWN 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DIGITAL THE NATION'S SECONDLARGEST COMPUTER MAKER POSTED EARNINGS PER SHARE OF 85 CENTS JUST SHORT OF MOST ANALYSTS' ESTIMATES ON 6 MORE SHARES THAN THE YEAREARLIER PERIOD LAST YEAR'S FOURTHQUARTER LOSS WHICH INCLUDED A 15 BILLION RESTRUCTURING CHARGE WAS 186 BILLION OR 1476 A SHARE REVENUE OF 391 BILLION WAS FLAT WITH A YEAR EARLIER DIGITAL IS MUCH FURTHER ALONG THAN IBM RIGHT NOW SAID SHAO WANG OF SMITH BARNEY HARRIS UPHAM & CO DIGITAL WHICH COMPETES WITH IBM FOR MANY OF THE SAME CORPORATE BUYERS IS NOW FOCUSED ON SERVICES AND SOFTWARE AND IS MAKING A TRANSITION TO ADVANCED CHIP DESIGNS HE SAID IBM MEANWHILE STILL SEEMS ABJECTLY DEPENDENT ON THE MAINFRAME AND IS SLASHING COSTS WITHOUT RADICAL STRATEGIC CHANGES BUT THE REAL ISSUE MR WANG ADDED ISN'T JUST THE ONE QUARTER BUT WHETHER IT CAN BE SUSTAINED LAPSING BACK INTO THE RED IN THE FALL WON'T BE WELL RECEIVED DIGITAL WHICH IS BASED IN MAYNARD MASS SAID US SALES WERE MODERATELY HIGHER DURING THE PERIOD WHILE SALES IN MANY ASIAN COUNTRIES WERE STRONG THE BIG PROBLEM IS CONTINUED WEAKNESS IN EUROPE WHERE DIGITAL GETS HALF ITS SALES AND THAT ISN'T LIKELY TO GET ANY BETTER ANYTIME SOON SAID JAY P STEVENS A DEAN WITTER REYNOLDS INC ANALYST MR STEVENS SAID THAT IN RECENT DAYS IBM CRAY RESEARCH STRATUS AND SILICON GRAPHICS ALL CUT EXPECTATIONS FOR THE YEAR IN LARGE PART DUE TO EUROPE PEOPLE ARE SHELLSHOCKED AS A RESULT WE CAN'T COUNT ON A PROFIT AT THIS POINT IN THE FISCAL FIRST QUARTER SAID WILLIAM STEUHL DIGITAL'S CHIEF FINANCIAL OFFICER DESPITE THEIR MUTUAL PROBLEMS IN EUROPE THE FORTUNES OF DIGITAL AND IBM SEEM TO BE DIVERGING DIGITAL HAS CUT 19600 JOBS OR ABOUT ONEFIFTH OF ITS WORK FORCE IN THE PAST YEAR AND HAS SAID IT DOESN'T EXPECT FURTHER BIG LAYOFFS IBM OPERATING ON A VASTLY LARGER SCALE WILL CUT 50000 JOBS THIS YEAR AND ANOTHER 35000 IN 1994 OR 28 OF ITS WORK FORCE DIGITAL'S PRESIDENT ROBERT B PALMER SAID THAT GROWTH DURING THE QUARTER CAME IN AREAS WHERE THE COMPANY IS REDIRECTING MUCH OF ITS EFFORTS SERVICES SUCH AS NETWORK DESIGN AND CONSULTING SOFTWARE AND DATASTORAGE DEVICES BUT OVERALL PRODUCT SALES DIPPED 3 AND THE STRONGEST LINES WERE LOWEREND COMPUTERS THAT CARRY THINNER PROFIT MARGINS AT THE SAME TIME DIGITAL'S NEW ALPHA LINE OF COMPUTERS ON WHICH MUCH OF THE COMPANY'S FUTURE RIDES ISN'T YET CONTRIBUTING SIGNIFICANTLY TO SALES MR PALMER SAID BUT HE SAID THAT ALPHA'S INTRODUCTION HAS ARRESTED THE DECLINE OF OVERALL COMPUTER SALES THE MAJORITY OF WHICH STILL ARE DERIVED FROM DIGITAL'S OLDER VAX LINE THE TWO LINES COMBINED WERE FLAT OVER THE YEAREARLIER QUARTER HE SAID PERSONAL COMPUTER SALES GREW SHARPLY DURING THE QUARTER RISING TO JUST UNDER 900 MILLION FOR THE FULL YEAR OTHER DIGITAL OFFICALS SAID PCS SHOULD BECOME PROFITABLE IN THE CURRENT YEAR THEY SAID DIGITAL'S BALANCE SHEET WAS STRONG AT THE END OF THE YEAR WITH 16 BILLION IN CASH ON HAND DEBT FROM A RECENTLY COMPLETED BOND OFFERING STANDS AT 1 BILLION AND ORDERS OUTPACED SHIPMENTS IN THE QUARTER BUILDING FUTURE MOMENTUM SAID DEAN WITTER'S MR STEVENS RESULTS ALSO WERE BUOYED BY A BUYBACK OF EMPLOYEE OPTION SHARES ELIMINATING CARRYING COSTS AND BOOSTING QUARTERLY RESULTS BY 32 MILLION OR 25 CENTS A SHARE THE COMPANY DIDN'T MENTION THE MANEUVER IN YESTERDAY'S ANNOUNCEMENT BUT HAD DISCLOSED IT IN A FILING EARLIER FOR THE YEAR DIGITAL HAD A LOSS OF 2513 MILLION OR 193 A SHARE COMPARED WITH A 1992 LOSS AFTER ACCOUNTING GAINS AND RESTRUCTURING CHARGES OF 28 BILLION OR 1850 A SHARE REVENUE ROSE 32 TO 1437 BILLION FROM 1393 BILLION 9307290008 930729 WHO'S NEWS GALILEO ELECTROOPTICS CORP GALILEO ELECTROOPTICS CORP STURBRIDGE MASS KENNETH W DRAEGER CHIEF EXECUTIVE OFFICER OF DECISION DATA SERVICES HORSHAM PA WAS NAMED A DIRECTOR OF THE MAKER OF FIBEROPTIC AND ELECTRONIC PRODUCTS HE SUCCEEDS PETER CRISP WHO DIDN'T STAND FOR REELECTION TO THE BOARD 9307290007 930729 LEISURE & ARTS FILM A MURDER CASE THAT CROSSES CULTURES BY JULIE SALAMON THOUGH MICHAEL CRICHTON'S BESTSELLING NOVEL RISING SUN IS A MURDER MYSTERY WHAT HAS RIVETED READERS IS ITS IMPOLITE JAPANBASHING WHEN A MURDER OCCURS ON THE PREMISES OF A JAPANESE CORPORATION IN LOS ANGELES LOCAL POLICE ARE HELD AT BAY BY THE JAPANESE WHO SEEM TO HAVE THE UPPER HAND IN EVERY RESPECT TWO SPECIAL INVESTIGATORS REPRESENTING AMERICAN INDIVIDUALISM AND KNOWHOW ONE IS AN EXPERT ON JAPANESE CULTURE COME IN TO DIVINE THE MYSTERIOUS WAYS OF THE EAST AND USE THE KNOWLEDGE TO CONQUER WHAT HAVE BEGUN TO SEEM LIKE INCONQUERABLE FOES FOR THE MOVIE VERSION OF RISING SUN DIRECTOR PHILIP KAUFMAN WHO COAUTHORED THE SCRIPT WITH MR CRICHTON AND MICHAEL BACKES HAS PLAYED UP THE MURDER MYSTERY AND TONED DOWN THE JAPANBASHING THERE'S STILL PLENTY OF AMERICAN DEFENSIVENESS A FRUSTRATED MURDER INVESTIGATOR TELLS HIS PARTNER WE'RE PLAYING THAT MOST AMERICAN OF GAMES CATCHING UP THE VILLAIN OF THIS PIECE ISN'T SO MUCH THE RUTHLESSLY RIGID JAPANESE CORPORATE CULTURE BUT CORPORATE CULTURE IN GENERAL THE BAD GUYS ARE THE JAPANESE AND AMERICAN UNDERLINGS WHO HAVE THROWN AWAY THEIR MORAL COMPASSES THEY'VE SET THEIR SIGHTS ON THE GOOD LIFEFAST CARS BEAUTIFUL WOMEN LUXURIOUS OFFICES AND HOUSES POWER THESE RUTHLESS BUREAUCRATS ADOPT THE WORST IDEAS IN BOTH CULTURES INSTEAD OF THE BEST ALL OF THIS HAS BEEN LAVISHLY SEDUCTIVELY LAID OUT BY MR KAUFMAN AND HIS CINEMATOGRAPHER MICHAEL CHAPMAN THIS APPROACH IS LESS PROVOCATIVE THAN THE BOOK'S CORPORATIONBASHING ISN'T EXACTLY A NEW IDEA OUT OF HOLLYWOOD YET AT LEAST FOR MUCH OF THE FILM MR KAUFMAN HAS MANAGED TO MAKE HIS MOVIE SEEM MORE INTERESTING THAN THE BOMBASTIC MATERIAL ON WHICH IT IS BASED A DELIBERATE MURKINESS HANGS OVER RISING SUN THE MOVIE THE GOOD GUYS AND BAD GUYS DON'T NEATLY FALL INTO PLACE THE FILMMAKERS HAVE FILLED THE LANDSCAPE WITH CHARACTERS BOTH MAJOR AND MINOR JAPANESE AND AMERICAN WHOSE MOTIVES AND POSSIBLE MOTIVES KEEP SHIFTING THE MINOR PLAYERS IN PARTICULAR GIVE THE PICTURE A FEELING OF DENSITY OF A RICHLY DIVERSE SUBCULTURE WATCH IN PARTICULAR FOR HARVEY KEITEL AS THE GUMCHEWING COP MUTTERING ABOUT JAP PERPS AND CARYHIROYUKI TAGAWA AS THE JAPANESE SYBARITE AND POSSIBLE MURDERER THE CLASH BETWEEN JAPANESE AND AMERICAN CULTURE SO CENTRAL TO THE BOOK HASN'T BEEN LOST BUT IT HAS BECOME JUST ANOTHER THREAD IN THE FILM'S ELABORATE EMBROIDERY WHAT'S MOST INTERESTING IN RISING SUN IS THE WAY THE FILMMAKERS MAKE US SEE HOW EASY IT IS FOR THE PEOPLE OPERATING IN THIS INSULATED TECHNOLOGICALLY SOPHISTICATED WORLD OF HIGHPOWERED BUSINESS TO LOSE THEIR GRIP ON REALITY OR TO EVEN KNOW WHAT REALITY IS RICH AND POWERFUL PEOPLE HAVE ALWAYS FOUND IT EASIER THAN ORDINARY PEOPLE TO DISDAIN CIVIL AND MORAL LAW THE MOVIE EXPLORES THE WAY TECHNOLOGY MAKES IT EVEN EASIER FOR THOSE WHO CAN AFFORD IT TO BREAK THE RULES SO FOR EXAMPLE WHEN TWO AMERICAN NERDGENIUSES FOUNDERS OF A COMPUTERSOFTWARE COMPANY NEGOTIATE WITH THE LARGE JAPANESE CORPORATION THAT WANTS TO ACQUIRE THE COMPANY A BIGBROTHER MONITOR PICKS UP EVERY WHISPERED WORD THERE ARE NO SECRETS HERE A FEW HOURS AFTER THAT MEETING A MURDER IS COMMITTED AT THAT VERY SAME NEGOTIATING TABLE THE VICTIM IS A VOLUPTUOUS AMERICAN WOMAN PART OF THE HAREM PROVIDED BY THE JAPANESE COMPANY AS A CORPORATE PERQUISITE THE VIDEOTAPE THAT'S PART OF THE BOARDROOM'S SPYING MECHANISM RECORDS THE CRIME WHICH AT FIRST APPEARS TO BE EITHER MURDER OR SEXUAL ASPHYXIATION DEATH BY STRANGULATION RESULTING FROM THE VICTIM'S PREDILECTION FOR BEING CHOKED DURING SEX MR KAUFMAN APPARENTLY ENJOYED THE KINKINESS OF THIS CRIME HE RETURNS TO IT QUITE EXPLICITLY OVER AND OVER IN THE COURSE OF PURSUING THE IDEA THAT THE VIDEOTAPED EVIDENCE WAS FALSIFIED BY SOPHISTICATED VIDEO WIZARDRY THE TWO MEN HANDPICKED TO INVESTIGATE THIS CASE ARE IN MANY WAYS UNLIKELY CHOICES TO SET IN THIS WORLD WHERE PEOPLE SEEM PRONE TO SELLING OUT FOR EXAMPLE A US SENATOR SEEN JAPANBASHING ON A TV TALK SHOW ONE MINUTE IS PERSUADED TO CHANGE HIS POSITION ON AN ANTIJAPAN TRADE BILL THE OLDER MAN JOHN CONNOR SEAN CONNERY IS A JAPAN EXPERT WHO CONSULTS FOR BOTH JAPANESE AND AMERICAN BINESSES AND WHO DESPITE HIS BENT FOR HIGHMINDED APHORISMS ACCEPTS MEMBERSHIP IN AN EXPENSIVE COUNTRY CLUB FOR BUSINESS HE EXPLAINS HIS PARTNER WEB SMITH WESLEY SNIPES HAS EVEN MORE DUBIOUS CREDENTIALS HIS RECORD INCLUDES CHARGES EVENTUALLY DISMISSED THAT HE TOOK BRIBES THESE ACTORS ARE SUBLIMELY PAIRED FOR WHAT THE MOVIE REQUIRES OF THEM A COMBINATION OF UPRIGHTEDNESS AND DESIRE FOR THE NICE THINGS THE BAD GUYS HAVE MR CONNERY WEARING A KIND OF UPDATED NEHRU JACKET SPECIALLY DESIGNED FOR THE MOVIE BY ARMANI STRIKES THE PERFECT TONE OF AMUSED MYSTERY REQUIRED OF CONNOR THE JAPAN EXPERT WHO APPROACHES HIS CROSSCULTURAL INVESTIGATION LIKE A COMBINATION SHERLOCK HOLMES AND ZEN MASTER YET HE DOESN'T OVERWHELM MR SNIPES WHO HAS THE MORE DIFFICULT ROLE IN SOME WAYS THAT OF THE STRAIGHT MAN THE MORE OR LESS CONVENTIONAL POLICEMAN DRAGGED INTO UNFAMILIAR TURF MR KAUFMAN KNOWS HOW TO MAKE EVEN THE FAMILIAR SEEM UNFAMILIAR HE HAS CLEVERLY SUBSTITUTED CULTURAL AND ANTICORPORATE POLEMICS WITH A DELIBERATE AMBIGUITY THAT GIVES THE IMPRESSION THAT LAYERS OF MEANING ARE HIDING BENEATH THE SURFACE THE MEANING MAY OR MAY NOT BE THERE IT DOESN'T MUCH MATTER IN THIS KIND OF HIGHLY ENJOYABLE DETECTIVE PICTURE AN ENDANGERED SPECIES WHICH RELIES ON LUSHLY INTELLIGENT ATMOSPHERICS AND SLY INSINUATION WHAT MATTERS IS THE FILMMAKERS MAKE IT SEEM AS THOUGH THERE REALLY IS MORE THERE THAN MEETS THE EYE VIDEO TIP MR KAUFMAN'S SPIRITED FILM VERSION OF THE RIGHT STUFF TOM WOLFE'S MARVELOUS ACCOUNT OF THE EARLY AMERICAN ASTRONAUTS CAPTURES THE ROMANCE THE BRAVERY AND THE HYPE OF THE POSTWORLD WAR II SPACE PROGRAM IT'S A BIG NOISY ENTERTAINING FILM THAT MANAGES TO BE BOTH SATIRIC AND REVERENTIAL TOWARD ITS SUBJECT 9307290006 930729 TRUMP SUES HYATT SEEKS SOLE OWNERSHIP OF NEW YORK HOTEL NEW YORK DONALD J TRUMP IS SUING HYATT CORP AND ITS OWNERS THE PRITZKER FAMILY IN A DISPUTE OVER THE GRAND HYATT HOTEL IN NEW YORK CITY THE HOTEL IS COOWNED BY MR TRUMP AND THE PRITZKERS AND MANAGED BY HYATT THE SUIT FILED IN FEDERAL COURT IN MANHATTAN ALLEGES THAT HYATT AND THE PRITZKERS ARE ATTEMPTING TO SQUEEZE MR TRUMP OUT OF HIS 50 STAKE IN GRAND HYATT BECAUSE A CLAUSE IN THE PARTNERSHIP AGREEMENT PREVENTS HYATT FROM OPERATING ANOTHER HOTEL IN THE CITY MR TRUMP IS ASKING THE COURT TO DISMISS HYATT AS THE HOTEL'S OPERATOR AND TO AWARD HIM EXCLUSIVE OWNERSHIP HE ALSO IS SEEKING MORE THAN 500 MILLION IN DAMAGES THE SUIT WHICH ALLEGES RACKETEERING AND FRAUD CHARGES HYATT AND THE PRITZKER FAMILY ENGAGED IN ACTIVITY INCLUDING FRAUD EXTORTION AND MONEY LAUNDERING TO MILK MONEY FROM GRAND HYATT THEY'VE ATTEMPTED TO RENDER THROUGH FRAUD THE GRAND HYATT SO UNPROFITABLE FOR MR TRUMP THAT HE WOULD BE FORCED TO CEDE IT TO THEM ENTIRELY SAYS THE SUIT IF MR TRUMP WITHDRAWS FROM THE PARTNERSHIP AGREEMENT THE PRITZKERS WOULD BE FREE TO RUN COMPETING NEW YORK CITY HOTELS IN A STATEMENT HYATT SAID THE SUIT IS TOTALLY WITHOUT MERIT RICHARD SCHULZE A SPOKESMAN ADDED THAT MR TRUMP HAS REFUSED TO PAY HIS SHARE AS A GRAND HYATT PARTNER TO MEET WORKING CAPITAL OBLIGATIONS AND TO UNDERTAKE A LONGOVERDUE RENOVATION OF THE HOTEL HE SAID AN ARBITRATOR HAD RULED THAT MR TRUMP MUST PAY HIS SHARE OF ALMOST 2 MILLION NEEDED TO PAY THE HOTEL'S LIABILITIES MR SCHULZE SAID THE GRAND HYATT WHICH OPENED IN 1979 IS OWNED BY REGENCY LEXINGTON PARTNERS NEW YORK IN WHICH MR TRUMP IS A 50 PARTNER HG INC A CHICAGO CONCERN OWNED BY THE PRITZKERS IS THE OTHER PARTNER 9307290005 930729 HEARD ON THE STREET TAKEOVER SCENE FOR BANKS STARTS TO HEAT UP ESPECIALLY FOR THE ONES BASED IN NEW JERSEY BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL IT'S TAKEOVERTALK TIME AGAIN IN BANKING ESPECIALLY FOR BANKS BASED IN NEW JERSEY THE LATEST SPECULATION HAS IT THAT THE 24 BILLIONINASSETS CONSTELLATION BANCORP IS SEEING POTENTIAL SUITORS THE STOCK PRICE OF THE ONTHEMEND ELIZABETH NJ COMPANY REFLECTS THE TALK IT IS UP ABOUT 35 SINCE MIDMAY TO 10 1/4 ALTHOUGH IT WAS OFF 1/4 YESTERDAY CONSTELLATION'S 272 MILLION SHARES APPEAR TO BE TRADING ON THE EXPECTATION OF A BID IN THE 12 TO 14 RANGE SAYS ELIZABETH SUMMERS AN ANALYST WITH RYAN BECK & CO A NEW JERSEY BANKING RESEARCH FIRM CONSTELLATION CHIEF EXECUTIVE GEORGE ZOFFINGER BROUGHT IN LATE IN 1991 TO ENGINEER A TURNAROUND WON'T COMMENT ON THE MARKET TALK NOR HAS THE COMPANY THOUGHT IT NECESSARY TO ALERT THE MARKET OF ANY SERIOUS INTEREST STILL AT LEAST ONE BANK CORESTATES FINANCIAL LAST WEEK COMPLETED A HARD LOOK AT ACQUIRING CONSTELLATION ACCORDING TO AN INVESTMENT BANKER WHO DECLINES TO BE NAMED THE CHANCE OF A FLAREUP IN PROBLEM LOANS WHICH ARE STILL HIGH BUT COMING DOWN CONCERNS CORESTATES HOWEVER AND WILL KEEP A BID LOW IF ONE IS MADE SAYS THE INVESTMENT BANKER MEANWHILE THERE IS TALK THAT BANK OF NEW YORK HEADED BY J CARTER BACOT HAS SHOWN INTEREST WHEN ANOTHER PERSON WHO HAS WORKED ON PAST DEALS FOR MR BACOT WAS ASKED IF THE BANK IS LOOKING AT CONSTELLATION HE SAID I CAN'T COMMENT ON THAT ONE DEALMAKERS EXPECT FIRST FIDELITY BANCORP THE LARGE NEW JERSEY BANKING COMPANY HEADED BY TONY TERRACCIANO TO GO THROUGH CONSTELLATION'S BOOKS AS WELL SPOKESMEN FOR FIRST FIDELITY CORESTATES AND BANK OF NEW YORK SAID IT IS STANDARD POLICY NOT TO COMMENT ON TAKEOVER SPECULATION NEW JERSEY BANKS ARE HOT TAKEOVER CANDIDATES BECAUSE THE STATE STILL HAS A NUMBER OF MIDSIZE TO LARGE INDEPENDENT ENTITIES ITS PERCAPITA INCOME IS HIGH AND NEARLY EVERY BIG BANK IN THE AREA FROM PHILADELPHIA TO NEW YORK HAS SAID IT IS LOOKING TO EXPAND THERE MS SUMMERS SAYS THAT BESIDES CONSTELLATION SUMMIT BANCORP CITIZENS FIRST BANCORP MIDLANTIC CORP AND UJB FINANCIAL CORP ARE CONSIDERED TAKEOVER PROSPECTS TRADERS AND ANALYSTS SAY UJB HAS BEEN ESPECIALLY ACTIVE OF LATE ON TALK THAT SOME GROUP OR BANK HAS ACQUIRED A 49 STAKE A UJB SPOKESMAN SAID THAT BASED ON RECENT VOLUME AND PUBLIC FILINGS OF HOLDINGS HE HASN'T ANY REASON TO BELIEVE THAT THE TALK OF A 49 STAKE IS TRUE BANK OF NEW YORK THE RUMORED HOLDER OF THE UJB STAKE HEATED UP NEW JERSEY BANK STOCKS IN JANUARY BY ANNOUNCING A DEAL AT A PRICEY 25 TIMES BOOK VALUE FOR NATIONAL COMMUNITY BANKS INC A 4 BILLION WEST PATTERSON BANKING COMPANY IT LOOKS LIKE THAT WAS A FOOT IN THE DOOR THAT IS PART OF A GRAND DESIGN SAYS JAMES MCDERMOTT PRESIDENT OF KEEFE BRUYETTE & WOODS UNTIL THE LARGER BANKING COMPANIES UJB AND MIDLANTIC BECOME MORE AMENABLE TO BEING ACQUIRED HE EXPECTS MR BACOT OF BANK OF NEW YORK AND MR TERRACCIANO OF FIRST FIDELITY TO BE THE MOST AGGRESSIVE IN VYING FOR SMALLER BANKING COMPANIES IN THE STATE WITH SOME DEALS ANNOUNCED IN THE NEXT TWO MONTHS BANKING TAKEOVERS ARE HOT SAYS MR MCDERMOTT WHO SAYS THE BATTLE FOR MARKET SHARE IN NEW JERSEY IS BEING PLAYED OUT ALL OVER THE COUNTRY THERE ARE A HALF DOZEN TO A DOZEN LARGE BANKING COMPANIES ACTIVELY COMBING THE MARKET FOR TURNAROUND SITUATIONS HE SAYS MANY ANALYSTS HAVE TAKEOVERCANDIDATE LISTS AS LONG AS YOUR ARM MR MCDERMOTT'S OWN LIKELY CANDIDATES INCLUDE ATLANTA'S BANK SOUTH HUBCO MIDLANTIC AND UJB ALL OF NEW JERSEY INDEPENDENCE BANCORP IN PENNSYLVANIA GATEWAY FINANCIAL IN CONNECTICUT MICHIGAN NATIONAL AND AMERICAN FEDERAL BANK A SOUTH CAROLINA THRIFT EVEN THOUGH SENIOR MANAGEMENT OF THESE COMPANIES MAY NOT BE EAGER FOR A DEAL THE STOCKS ALREADY REFLECT SOME TAKEOVER EXPECTATIONS AND MR MCDERMOTT BELIEVES IT'S NOT A MATTER OF WHETHER THEY ARE ACQUIRED BUT WHEN ANOTHER SIGN THAT THE TAKEOVER SCENE IS HEATING UP WERE TWO DEALS ANNOUNCED TUESDAY NORWEST OF MINNEAPOLIS SAID IT AGREED ON A 490 MILLION ACQUISITION OF FIRST UNITED BANK GROUP OF ALBUQUERQUE NM AND PNC BANK CORP PITTSBURGH SAID IT WILL ACQUIRE FIRST EASTERN CORP WILKESBARRE PA FOR 330 MILLION WITH BIG BANKS ENJOYING A SECOND STRAIGHT YEAR OF STRONG EARNINGS AND HIGH STOCK PRICES MANY INVESTORS EXPECTED THAT THIS WOULD BE THE YEAR OF MEGASIZED MERGERS INSTEAD AS THOSE TWO DEALS ILLUSTRATE IT IS TURNING OUT TO BE A TIME WHEN THE BIG BANKS ARE SCRAMBLING TO FILL IN MARKET GAPS WITH SMALLER BANKS FOR A MORE AMBITIOUS ACQUISITION IN THE FUTURE SAYS MR MCDERMOTT PNC'S LATEST DEAL ONE OF A DOZEN OR SO IN THE PAST FEW YEARS IS AN EXAMPLE HE SAYS TOM O'BRIEN PNC'S CHIEF EXECUTIVE IS HAVING A FIELD DAY POSITIONING HIMSELF FOR A LARGE ACQUISITION SOONER OR LATER IF A DEAL FOR CONSTELLATION IS STRUCK IT WOULD BE A QUICK PAYOFF FOR SHAREHOLDERS WHO MORE THAN TRIPLED THE NUMBER OF SHARES OUTSTANDING LAST FALL BY PAYING 375 A SHARE FOR NEW STOCK IN A RIGHTS OFFERING MANY UNDOUBTEDLY SIGNED ON LOOKING FOR A REPEAT OF WHAT HAPPENED TO EQUIMARK FINANCIAL A SIMILARLY TROUBLED BANK THAT HAD A RIGHTS OFFERING EARLIER IN THE YEAR AND WAS ACQUIRED BY INTEGRA FINANCIAL AT A LARGE PREMIUM IN JULY THERE'S A LOT OF PRESSURE ON CONSTELLATION TO DO A DEAL NOW THAT THE BANK IS IN BETTER SHAPE SAYS THE INVESTMENT BANKER WHO SAYS HE IS AWARE OF THE INTEREST BEING SHOWN BY OTHER BANKS 9307290004 930729 DANNY THE FIFTH AND THE BIG BOAT TAX BY ROBERT L BARTLEY NO NOT DANNY V ALTHOUGH HE DID INHERIT A POSITION IN CHICAGO POLITICS FROM HIS ALDERMAN FATHER RATHER DANNY THE FIFTH ROSTENKOWSKI IN HONOR OF HIS WAVING THE FIFTH AMENDMENT TO WARD OFF HIS SUBPOENA OVER THE HOUSE POST OFFICE DANNY THE FIFTH IS OF COURSE TECHNICALLY OUTRANKED BY TOM DEADEYE FOLEY WHO EARNED HIS MONIKER ALONG WITH 100000 HITTING HOT STOCKS ON 40 OF THE 42 TIMES HE BOUGHT INTO PUBLIC OFFERINGS ON THE OTHER SIDE OF THE CAPITOL PAT IRISH MOYNIHAN IS PLAYING A SOBER ROLE AND GEORGE BOATBUILDER MITCHELL IS PERSONALLY UNTARRED IN THE MORE REFINED SENATE YOU HAVE TO START PICKING UP ROCKS TO UNCOVER SLITHERING CREATURES SUCH AS KEATING FIVE LUMINARIES DENNIS DECONCINI OR DON RIEGLE THIS RUNYONESQUE GANG IS JUST NOW REPEALING THE DECADE OF GREED ROLLING DICE OVER HOW MUCH YOU'LL OWE IN TAXES NEXT YEAR OR THEY MAY USE BIG JULIE'S DICE WITH NO SPOTS TO DECIDE IT'S RETROACTIVE TO THIS YEAR THE IDEA IS TO SOAK THE RICH OPERATIONALLY DEFINED AS ANYONE WHO MAKES MORE THAN A CONGRESSMAN DOES THE CONSTANT CHANT OF COURSE IS ABOUT CLOSING THE DEFICIT LEFT BEHIND FROM PREVIOUS CRAPSHOOTS BUT THE POT SWELLS WITH NEW SPENDING AND NO ONE WILL EVEN STEP DOWN FROM THE CHORUS TO DEBATE WHETHER THE PROPOSED TAX RATES WILL PRODUCE THE PREDICTED REVENUES IN FACT THE PLAYERS AREN'T INTERESTED IN MAXIMIZING REVENUES THEY WANT TO PUNISH THE SUCCESSFUL MEMBERS OF SOCIETY THE PEOPLE WHO DON'T PARTICIPATE IN IPOS EXCEPT MAYBE THEIR OWN PART OF THIS IS OF COURSE A WELLENUNCIATED POLITICAL STRATEGY STIRRING RESENTMENT AGAINST THE RICH IS SUPPOSED TO WIN BACK THE REAGAN DEMOCRATS IN MACOMB COUNTY MICH BUT IF THIS WERE THE LODESTONE THERE WOULD BE NO HASSLES ABOUT DIVERSITY OR GAYS IN THE MILITARY THE TRUE IMPETUS LIES IN THE ROSTENKOWSKIFOLEY STORY WHETHER OR NOT MACOMB COUNTY RESENTS THE RICH THE BELTWAY SURE DOES ENTRENCHED RENTIERS ALWAYS RESENT THE ENTREPRENEURIAL CLASS IF I'M SO SMART HOW COME I'M NOT RICH DANNY ROSTENKOWSKI MUST ASK HIMSELF EVERY DAY AT LEAST TO JUDGE BY THE LIFESTYLE SUPPORTED BY A 1 MILLION CAMPAIGN FUND AND OF COURSE HE MUST BE SMART WHY ELSE WOULD SO MANY RICH PEOPLE CONTRIBUTE TO HIS NEST EGG AND SURELY SOMEONE AS IMPORTANT AS THE SPEAKER OF THE HOUSE DESERVES HIS NEW CAPITOL HILL HOME WITH ITS OWN SWIMMING POOL AND IF THE RICH ARE SUCH EASY PICKINGS THEY CAN'T OBJECT TO PAYING HIGHER TAXES THE CATCH IS THAT UNLIKE THE BELTWAY RENTIERS THE RICH PRODUCE WEALTH AS WELL AS CONSUME IT IF YOU INCREASE THEIR TAX RATES YOU DECREASE THEIR INCENTIVES AND THEY ARE LIKELY TO SPEND LESS TIME PRODUCING AND MORE TIME PLAYING GOLF AND CONCOCTING TAX SHELTERS SO PUNISHING THE ENTREPRENEURS PUNISHES THE ECONOMY THE 1990 TAX INCREASES EXQUISITELY TIMED TO CATCH AN ECONOMY ALREADY ON THE DOWNTURN DEEPENED THE RECESSION AND SLOWED THE RECOVERY THIS TIME THE ECONOMY AND THE STOCK MARKET ARE STILL INCHING UP SO WITH LUCK THE EFFECT MAY NOT BE SO DRAMATIC BUT AS WANING CONSUMER CONFIDENCE SHOWS LOWER INCENTIVES WILL NOT PRODUCE THE VIGOROUS GROWTH THAT CREATES NEW JOBS IT'S CLEAR THAT IN CURRENT TIMES JOB CREATION IS THE PROVINCE OF SMALL BUT GROWING BUSINESSES SINCE IBM AND THE REST ARE PARING PAYROLLS IN THE NAME OF EFFICIENCY AND BECAUSE MANY BUDDING BUSINESSES ARE RUN OFF PERSONAL TAX RETURNS THE TAX BOOSTS ARE NICELY TARGETED ON THE VULNERABLE NEW SHOOTS THE RENTIERS REPLY THAT MOST SMALL BUSINESSES WON'T BE AFFECTED BECAUSE THEY DON'T MAKE MUCH MONEY ANYWAY AN ARGUMENT THAT APPARENTLY IMPRESSES SOME OF OUR OWN PAPER'S NORMALLY SERIOUS WRITERS ULTIMATELY HOWEVER THE POINT IS TRIVIAL SO TAX BOOSTS WON'T AFFECT FAILING SMALL BUSINESSES ONLY PROMISING ONES IF MOST RISKY ENTERPRISES REMAIN UNAFFECTED SO WHAT IF YOU STIFLE THE NEXT MICROSOFT THANKS A STUDY BY THE NATIONAL CENTER FOR POLICY ANALYSIS FOCUSED ON PARTNERSHIPS AND SUBCHAPTER S CORPORATIONS REPORTED ON INDIVIDUAL RETURNS FOUND THAT THE HIGHER TAX RATES WOULD APPLY TO 84 OF ALL THE INCOME THEY GENERATE IF ANYONE DOUBTS THAT THESE INCENTIVES CAN HAVE POWERFUL EFFECTS NOTE THAT THE CURRENT BILL CONTAINS ONE SORETHUMB EXCEPTION TO THE SOAKTHERICH THEME IT WOULD ACTUALLY REPEAL THE 1990 TAX ON YACHTS AIRPLANES AND OTHER LUXURY GOODS THESE LUXURIES WERE A BIG SYMBOL OF 1980S GREED ESPECIALLY SINCE TONY COELHO SPEAKER JIM WRIGHT'S TOP SIDEKICK WAS RUN OUT OF CONGRESS FOR GETTING CAUGHT WITH HIS HANDS ALL OVER THE HIGH SPIRITS A 112FOOT YACHT S&L HIGHFLYER DON DIXON KEPT ON THE POTOMAC FOR THE ENJOYMENT OF THE RENTIERS THE LUXURY TAX THOUGH DECIMATED THE NATION'S SHIPYARDS NOT LEAST IN SENATE MAJORITY LEADER MITCHELL'S HOME STATE OF MAINE SO BOATBUILDER MITCHELL THE POINT MAN IN RESUSCITATING THE TAX FAIRNESS ISSUE AFTER IT LED THE MONDALE PRESIDENTIAL CAMPAIGN TO ITS FATE NOW LEADS THE CHARGE TO EASE THE TAX BURDEN ON YACHTSMEN MEANWHILE OF COURSE HE AND THE REST OF THE BIG ROLLERS ARE ABOUT TO SOCK THE WHOLE ECONOMY WITH ONE BIG BOAT TAX EVEN THE RENTIERS HAVE A NASCENT SENSE OF THIS IF THE SENATE TOOK A SECRET BALLOT ONE OPPONENT OF THE PLAN ESTIMATES IT WOULD GET 20 VOTES YET CONGRESSIONAL DEMOCRATS PLUNGE ON THEIR ULTIMATE RATIONALE BEING THAT REJECTING THE PROPOSAL WOULD MEAN WE CAN'T GOVERN YES AND IT WOULD ALSO MEAN THAT WATER RUNS DOWNHILL SEN RIEGLE REMAINS HEAD OF THE BANKING COMMITTEE HIS ETHICS COMMITTEE BRUSHED OFF THE S&L MISDEEDS THEIR COUNSEL SO EXTENSIVELY OUTLINED WHEN JIM WRIGHT AND TONY COELHO LEAVE WE GET TOM FOLEY AND DANNY ROSTENKOWSKI UNTOUCHABLE DESPITE THEIR GAUCHERIES IF THE MEMBERS OF CONGRESS WANT TO PROVE THEY CAN GOVERN THEY CAN START BY GOVERNING THEMSELVES MR BARTLEY IS EDITOR OF THE JOURNAL 9307290003 930728 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 9307290002 930729 CHRYSLER FORD POST A STRONG SECOND PERIOD BY JACQUELINE MITCHELL AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT CHRYSLER CORP AND FORD MOTOR CO BUOYED BY BRISK VEHICLE SALES POSTED SHARPLY HIGHER SECONDQUARTER EARNINGS COMPARED WITH WEAK YEAREARLIER LEVELS BUT WALL STREET'S REACTION WAS MIXED CHRYSLER SHARES PLUNGED 2 TO 42625 IN HEAVY NEW YORK STOCK EXCHANGE TRADING AFTER POSTING NET INCOME OF 685 MILLION OR 186 A SHARE ITS BEST QUARTERLY PERFORMANCE SINCE THE 1884 SECOND QUARTER THE PROFIT WAS NEARLY FOUR TIMES THE YEAREARLIER NET OF 178 MILLION OR 54 CENTS A SHARE REVENUE ROSE 18 TO 1103 BILLION FROM 931 BILLION CHRYSLER'S STRONG FINANCIAL RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT THE MARKET APPARENTLY WAS BETTING THAT THE AUTO MAKER WOULD PULL ANOTHER EARNINGS SURPRISE AS IT HAS IN PAST QUARTERS FORD SHARES EDGED UP 75 CENTS TO 52 ON NEWS THAT THE NO 2 AUTO MAKER'S NET DOUBLED TO 775 MILLION OR 143 A SHARE FROM THE YEAREARLIER 387 MILLION OR 70 CENTS A SHARE REVENUE ROSE 96 TO 2942 BILLION FROM 2684 BILLION FORD'S RESULTS EXCEEDED MOST EXPECTATIONS BUT LEFT ANALYSTS WONDERING WHY FORD DIDN'T POST A BIGGER PROFIT ON ITS STRONG VEHICLE SALES FORD EARNED A PROFIT OF ROUGHLY 333 ON EACH VEHICLE SOLD IN THE US WHICH IS LESS THAN HALF THE ESTIMATED 808 THAT CHRYSLER EARNED ON EACH VEHICLE IN THE QUARTER AT THE SAME TIME FORD SAID ITS PERVEHICLE MARKETING INCENTIVES DROPPED BY 150 TO 750 FROM A YEAR EARLIER CHRYSLER SAID PERVEHICLE INCENTIVES DROPPED BY 200 TO 1050 CHRYSLER'S RESULTS LOOK EXCEPTIONALLY CLEAN SAID JACK KIRNAN SALOMON BROTHERS'S AUTO ANALYST BUT SOMETHING ISN'T ADDING UP AT FORD I DON'T UNDERSTAND HOW THEY CAN HAVE SUBPAR PROFITABILITY AT THIS LEVEL OF SALES IN RESPONSE TO QUESTIONS DAVID N MCCAMMON FORD'S VICE PRESIDENT OF FINANCE OBSERVED THAT WORKING IN CHRYSLER'S FAVOR IS A HEAVIER PROPORTION OF HIGHPROFIT TRUCKS AND A LIGHTER PROPORTION OF LOWPROFIT SMALL CARS COMPARED WITH FORD THE BIG DIFFERENCE IS MORE THAN EXPLAINED BY MIX MR MCCAMMON SAID WORLDWIDE FORD'S EARNINGS PER VEHICLE WERE JUST 236 CHIEFLY REFLECTING A 75 MILLION LOSS BY FORD OF EUROPE COMPARED WITH A 150 MILLION PROFIT A YEAR EARLIER AND A 60 MILLION LOSS BY JAGUAR MOTOR CARS LTD COMPARED WITH A 75 MILLION LOSS A YEAR EARLIER FORD SAID RECORD HIGH CAPITAL OUTLAYS ALSO HURT EARNINGS FORD SAID IT SPENT 163 BILLION IN THE LATEST QUARTER ON PRODUCT DEVELOPMENT ITS SECONDHIGHEST OUTLAY SINCE THE 1990 SECOND QUARTER WHEN IT SHELLED OUT 17 BILLION FORD SAID ITS US FACTORIES RAN AT 110 OF STRAIGHTTIME CAPACITY WHICH EXCLUDES OVERTIME PRODUCTION THIRDQUARTER OUTPUT WILL BE LOWER AS THE AUTO MAKER WINDS DOWN PRODUCTION OF 1993 MODELS FORD'S FINANCIAL SERVICES GROUP POSTED A RECORD SECONDQUARTER PROFIT OF 380 MILLION UP FROM 284 MILLION A YEAR AGO CHRYSLER'S STRONG EARNINGS WERE EXAGGERATED SOMEWHAT BY ONETIME GAINS OF 71 MILLION FROM THE SALE OF MITSUBISHI MOTORS CORP STOCK AND 39 MILLION FROM THE SALE OF ACUSTAR PLASTICS OPERATIONS WE HAD AN EXTREMELY STRONG SECOND QUARTER MARKED BY TREMENDOUS MARKET ACCEPTANCE OF OUR NEW PRODUCTS SAID ROBERT J EATON CHRYSLER CHAIRMAN EXCLUDING ONETIME GAINS AND PROFITS EARNED BY ITS FINANCIAL SUBSIDIARY CHRYSLER EARNED 531 MILLION A MARKED IMPROVEMENT FROM 129 MILLION A YEAR EARLIER THE INCREASED PROFIT CAME FROM COST CONTROLS AND A BETTER MIX OF ATTRACTIVE NEWER PRODUCTS IN THE PROFITABLE LARGE CAR AND LIGHT TRUCK SEGMENTS CHRYSLER'S PROFIT WAS DRAGGED DOWN BY A DROP IN EARNINGS AT ITS CHRYSLER FINANCIAL CORP UNIT THE UNIT POSTED EARNINGS OF 44 MILLION COMPARED WITH 49 MILLION A YEAR EARLIER 9307290001 930729 INTERNATIONAL RUSSIA'S RUBLE SHIFT SLIDES INTO CHAOS AS ITS LEADERS CONTRADICT EACH OTHER BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S PLAN TO PULL ALL PRE1993 RUBLE NOTES FROM CIRCULATION HAS FRACTURED INTO MONETARY AND POLITICAL CHAOS WHICH CURRENCY POLICY MIGHT PREVAIL DEPENDS ON WHICH HIGHRANKING POLITICIAN YOU LISTEN TO AND NO ONE SEEMS TO KNOW WHO WILL HAVE THE FINAL SAY FIRST CAME SATURDAY'S STRICT AND SUDDEN PLAN FROM THE RUSSIAN CENTRAL BANK TO INVALIDATE PRE1993 RUBLES THEN PRESIDENT BORIS YELTSIN RUSHED BACK MONDAY FROM VACATION TO EASE BUT NOT ERASE THE CENTRAL BANK ORDER YESTERDAY BROUGHT A REPORT BY THE RUSSIAN INTERFAX NEWS AGENCY THAT THE PRESIDIUM OF THE SUPREME SOVIET WHICH OVERSEES THE CENTRAL BANK HAD OVERTURNED THE BULK OF THE ORIGINAL CENTRAL BANK DECREE THAT REPORT WAS THEN DISMISSED BY A CENTRAL BANK SPOKESMAN AS DISINFORMATION ADDING TO THE CONFUSION PARLIAMENTSPEAKER RUSLAN KHASBULATOV USUALLY KNOWN FOR HIS ATTACKS OF MARKET REFORMS HAS COME OUT AS A SUPPORTER OF PRIVATE PROPERTY RIGHTS AND FREE TRADE IN ALL RUBLES NEW OR OLD IN ORDER TO ATTACK MR YELTSIN PRIME MINISTER VIKTOR CHERNOMYRDIN ON THE OTHER HAND HAS ENDORSED THE RUBLE EXCHANGE AS IN PRINCIPLE CORRECT THE ONLY SURE BET IS THAT NO ONE WANTS TO BE CAUGHT WITH PRE1993 RUBLES RUBLEHOLDERS CONTINUED TO LINE UP AT BANKS YESTERDAY WAITING FOR HOURS TO TRADE THEIR OLD RUBLES FOR NEW ENTREPRENEUR VLADIMIR ARMYONKIN PEDDLING PEPSI AND JEANS FROM HIS KIOSK IN MOSCOW SAID THAT DESPITE RUMORS THAT OLD RUBLES MAY BE REHABILITATED HE'S PLAYING IT SAFE BY TAKING ONLY NEW YOU CAN'T KNOW WHAT'S GOING ON UNLESS YOU'RE UP IN THE KITCHEN BUT RIGHT NOW THERE ARE TOO MANY COOKS IN THE KITCHEN A CENTRAL BANK SPOKESMAN SAID AT A NEWS CONFERENCE YESTERDAY THAT THE PLAN WAS IMPLEMENTED AS A COORDINATED POLICY BETWEEN THE CENTRAL BANK AND THE FINANCE MINISTRY BUT AT ANOTHER NEWS CONFERENCE ACROSS TOWN JUST AN HOUR LATER DEPUTY PRIME MINISTER AND FINANCE MINISTER BORIS FYODOROV DENOUNCED THE PLAN AS CRIMINAL AND NOTHING BUT FRAUD AS WELL AS STUPID AND MEANINGLESS ADDING THAT THE FINANCE MINISTRY HAS HAD NOTHING TO DO EITHER WITH THE PREPARATIONS OR WITH THE CONDUCT OF THIS POINTLESS ECONOMICALLY ILLITERATE ACTION MR FYODOROV ADDED THAT HE BELIEVED PRIME MINISTER CHERNOMYRDIN HAD BEEN MISLED BY CENTRAL BANK HEAD VIKTOR GERASHCHENKO THE UNCERTAINTY STIRRED UP BY THE RUBLE SWITCH HAS CAUSED ESPECIALLY SEVERE HEADACHES IN FORMER SOVIET REPUBLICS MOST OF WHICH STILL USE THE RUBLE IN SOME CASES ALONGSIDE LOCALLY ISSUED CASH COUPONS ORIGINALLY TOUTED AS A WAY OF FORCING OTHER CENTRAL BANKS IN THE COMMONWEALTH OF INDEPENDENT STATES TO COOPERATE WITH THE RUSSIAN CENTRAL BANK IN REDUCING MONEY SUPPLY TO BRING DOWN INFLATION THE INCREASINGLY AMORPHOUS RUBLE EXCHANGE PLAN NOW LOOKS UNLIKELY TO MAKE ANY SIGNIFICANT DENT IN THE TRIPLEDIGIT INFLATION THAT PLAGUES THE RUBLE ZONE ONLY RUSSIA ACTUALLY ISSUES CASH IN ANY EVENT AND THE CURRENT PLAN OFFERS NO GUARANTEE THAT THE RUSSIAN CENTRAL BANK WILL NOW IMPOSE STRICTER LIMITS ON ITS OWN CASH EMISSIONS THE RUBLE'S VALUE HAS STRENGTHENED AGAINST THE DOLLAR RECENTLY CLOSING YESTERDAY AT 992 AFTER HOVERING ABOVE 1000 FOR MOST OF THE PAST TWO MONTHS BUT ECONOMISTS HERE ATTRIBUTE THE RISE TO CENTRAL BANK INTERVENTION TO SUPPORT THE RUBLE IT'S ALSO LIKELY THAT THE RISE RESULTS IN PART FROM A SHORTAGE OF 1993 RUBLE NOTES WHICH MAY COMMAND A PREMIUM AS PEOPLE TRADE IN OLD BILLS FOR NEW THE VALUE THAT THE RUSSIAN PUBLIC ATTACHES TO OLD RUBLES WAS NEATLY SUMMED UP ON A MOSCOW STREET WHERE THE DRIVER OF A BLUE LADA HAD SPEARED AN OLD 25 RUBLE NOTE ON TOP OF HIS RADIO ANTENNA AND IT FLAPPED IN A SUMMER BREEZE 9307280170 930728 PUBLIC OPINION ON ECONOMY REFLECTS BOTH JOBS AND WAGES ECONOMIST SAYS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HARVARD UNIVERSITY ECONOMIST ARGUING THAT LOOKING JUST AT THE TOTAL NUMBER OF JOBS IN THE COUNTRY GIVES AN INCOMPLETE PICTURE OF THE ECONOMY'S PERFORMANCE HAS COME UP WITH A MEASURE THAT COMBINES BOTH THE NUMBER OF JOBS AND HOW WELL THEY PAY PROFESSOR JAMES MEDOFF'S JOB QUALITY INDEX HAS CLIMBED VERY SLOWLY IN THE PAST SIX MONTHS WHICH HELPS EXPLAIN THE CURRENT PUBLIC FRUSTRATION WITH THE ECONOMY WE ARE SPENDING ON THINGS THAT PROVIDE JOBS BUT THE JOBS ARE OF LOW QUALITY AND HAVE LOW AVERAGE COMPENSATION HE SAYS WHILE EMPLOYMENT HAS INCREASED ROUGHLY 09 SO FAR THIS YEAR A GAIN MUCH CELEBRATED BY THE WHITE HOUSE THAT GROWTH HAS BEEN PARTLY OFFSET BY A 03 DECLINE IN INFLATIONADJUSTED AVERAGE WAGES AND BENEFITS MR MEDOFF SAYS HARNESSING HIS INDEX TO A COMPUTER MODEL THAT ATTEMPTS TO CAPTURE THE RELATIONSHIPS BETWEEN VARIOUS INDUSTRIES MR MEDOFF ALSO IS GAUGING THE LIKELY EFFECT ON WORKERS OF INCREASES IN VARIOUS KINDS OF GOVERNMENT OR PRIVATE SPENDING WHEN THE TWO FACTORS ABSOLUTE NUMBER OF JOBS AND THEIR AVERAGE QUALITY ARE BOTH CONSIDERED SPENDING BY STATE AND LOCAL GOVERNMENT IS BEST FOLLOWED BY PRIVATE INVESTMENT ON EQUIPMENT OR BUILDINGS HE CONCLUDES AN INCREASE OF SAY 100 MILLION IN STATE AND LOCAL GOVERNMENT SPENDING HE SAYS NOT ONLY CREATES 25 MORE JOBS THAN AN IDENTICAL INCREASE IN CONSUMER SPENDING BUT THE JOBS GENERATED THROUGH GOVERNMENT SPENDING PAY ON AVERAGE ABOUT 20 MORE THAT'S BECAUSE MUCH CONSUMER SPENDING INVOLVES RELATIVELY LOWPAID SERVICE JOBS SPENDING ON EDUCATION AND PUBLIC SAFETY ARE PARTICULARLY POTENT IN JOBCREATING TERMS BECAUSE NEARLY ALL OF IT GOES DIRECTLY TO HIRING AS OPPOSED TO BUYING MATERIALS AN INCREASE OF 100 MILLION IN SPENDING ON BUSINESS EQUIPMENT CREATES ROUGHLY THE SAME NUMBER OF JOBS AS A 100 MILLION INCREASE IN CONSUMER SPENDING BUT THE JOBS CREATED THROUGH BUSINESS INVESTMENT PAY ABOUT 30 MORE I SUPPORT INVESTMENT BECAUSE I'D LIKE TO SEE OUR PRODUCTIVITY GROWING AGAIN BUT BY THE WAY IT ALSO CREATES GOOD JOBS MR MEDOFF SAYS CONTRARY TO WHAT IS SOMETIMES ASSUMED ABOUT THE IMPACT OF DEFENSE EXPENDITURES THIS ANALYSIS SUGGESTS THAT A GIVEN AMOUNT OF MILITARY PURCHASES GENERATES ONLY THREEFOURTHS AS MANY CIVILIAN JOBS AS DOES THE SAME AMOUNT OF CONSUMER EXPENDITURE MR MEDOFF ADDS DEFENSE JOBS DO PAY ROUGHLY 40 MORE THAN THOSE CREATED BY CONSUMER SPENDING BUT THE BOTTOM LINE IS THAT MEASURED BY MR MEDOFF'S INDEX A DOLLAR SPENT ON DEFENSE IS FAR LESS POTENT TO AMERICAN WORKERS THAN A DOLLAR SPENT BY STATE AND LOCAL GOVERNMENTS OR BY BUSINESS ON NEW EQUIPMENT LIKE MANY ECONOMISTS MR MEDOFF ARGUES THAT PEOPLE VOTE THEIR POCKETBOOKS HE SAYS HIS INDEX WHICH CLOSELY TRACKS CONSUMER CONFIDENCE MAY HELP HANDICAP PRESIDENTIAL ELECTIONS THE JOBQUALITY INDEX ROSE AFTER THE DEEP RECESSION IN THE EARLY 1980S AS A SHARP INCREASE IN THE NUMBER OF JOBS OVERSHADOWED DETERIORATION IN WAGES AND BENEFITS BUT THE INDEX TURNED DOWN IN THE SUMMER OF 1990 AS THE RECESSION BEGAN AND THERE NO LONGER WERE JOB GAINS TO MASK STAGNANT INCOMES PRESIDENT REAGAN WAS ABLE TO BENEFIT POLITICALLY FROM STRONG INCREASES IN JOB NUMBERS WHICH HELPED MAKE UP FOR THE FACT THAT PAY AND BENEFITS WEREN'T INCREASING MR MEDOFF SAYS DURING BUSH'S PRESIDENCY IN CONTRAST PAY AND BENEFITS CONTINUED TO SAG BUT NOT MUCH ADDITIONAL WORK WAS AVAILABLE VOTERS REGISTERED THEIR DISSATISFACTION AT THE POLLS MR MEDOFF'S INDEX IS BASED PARTLY ON THE NUMBER OF JOBS COUNTED IN THE LABOR DEPARTMENT'S MONTHLY SURVEY OF EMPLOYERS IT USES THE DEPARTMENT'S SURVEY OF HOUSEHOLDS FOR DATA ON INFLATIONADJUSTED WAGES SUPPLEMENTED WITH OTHER DEPARTMENT DATA ON FRINGE BENEFITS HIS WORK WAS SPONSORED BY THE CENTER FOR NATIONAL POLICY A WASHINGTON THINK TANK 9307280169 930728 SUNBEAMOSTER PLANS TO POST 48 INCREASE IN SECONDPERIOD NET PROVIDENCE RI SUNBEAMOSTER CO BUOYED BY STRONG SALES OF GRILLS AND OUTDOOR FURNITURE EXPECTS TO REPORT A RISE OF ABOUT 29 IN PERSHARE PROFIT AND 48 IN NET INCOME FOR THE SECOND QUARTER SUNBEAM CHAIRMAN CHARLES THAYER SAID IN AN INTERVIEW THAT THE COMPANY WHICH HAS 20 MORE SHARES OUTSTANDING THAN IT DID A YEAR AGO EXPECTS TO POST A 14 RISE IN SALES ANALYSTS HAD EXPECTED A SIGNIFICANT SALES BOOST FROM THE ACQUISITION OF THE OUTDOOR GRILL DIVISION OF ARKLA INC IN LATE 1992 A SUNBEAM SPOKESMAN SAID THE FORMER ARKLA DIVISION ACCOUNTED FOR ABOUT A THIRD OF SUNBEAM'S OVERALL REVENUE INCREASE IN THE QUARTER MR THAYER'S ESTIMATES WOULD PUT PERSHARE EARNINGS AT ABOUT 27 CENTS UP FROM 22 CENTS A YEAR EARLIER NET WOULD BE ABOUT 25 MILLION ON SALES OF 293 MILLION IN THE 1992 QUARTER NET WAS 167 MILLION ON SALES OF 257 MILLION SUNBEAM PLANS TO REPORT ITS FIGURES TOMORROW MR THAYER A SUNBEAM DIRECTOR WHO WAS NAMED ACTING CHAIRMAN AFTER THE FIRING IN JANUARY OF PAUL KAZARIAN HAS SPENT THE PAST SIX MONTHS PRESIDING OVER SUNBEAM'S OPERATIONS WHILE MR KAZARIAN FILED LAWSUITS OVER HIS OUSTER AGAINST TWO INVESTORS WHO CONTROL THE COMPANY THOSE LAWSUITS WERE SETTLED LAST WEEK WITH MR KAZARIAN AND TWO OF HIS FORMER PARTNERS CASHING OUT THEIR STOCK AT 14 A SHARE OR 173 MILLION SUNBEAM CLOSED YESTERDAY AT 1850 DOWN 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DESPITE THE PUBLICITY SURROUNDING THE COMPANY MR THAYER SAID THE OPERATIONS OF SUNBEAM HAVE CONTINUED RIGHT ON TRACK DAYTODAY BUSINESS FOR OUR OPERATING GROUPS HAS BEEN LARGELY UNAFFECTED THE COMPANY IS CURRENTLY SEARCHING FOR A NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER AN ANNOUNCEMENT IT EXPECTS TO MAKE SOON MR THAYER ADDED MR THAYER SAID SUNBEAM'S STATEGY IS TO EXPAND DISTRIBUTION CHANNELS AS WELL AS EXPAND OUR PRODUCT LINES HE SAID SUNBEAM WILL USE SOME OFTHE 80 MILLION IN CASH IT HAS LEFT FOLLOWING THE BUYOUT OF THE STAKE HELD BY MR KAZARIAN AND HIS PARTNERS 9307280168 930728 PRESIDIO OIL CO TAKES STEPS TO RESTRUCTURE COMPANY'S FINANCES DENVER PRESIDIO OIL CO SAID IT WAS TAKING SEVERAL STEPS TO RESTRUCTURE ITS FINANCES INCLUDING REFINANCING SOME OLD NOTES ISSUING NEW NOTES AND AMENDING ITS BANK CREDIT LINE THE COMPANY SAID IT AGREED WITH CERTAIN INSTITUTIONAL HOLDERS TO EXCHANGE 75 MILLION OF ITS EXISTING 100 MILLION SENIOR SUBORDINATED GAS INDEXED NOTES DUE 1999 FOR AN EQUIVALENT AMOUNT OF NEWLY ISSUED SENIOR GAS INDEXED NOTES DUE 2002 THE NEW NOTES WILL RANK SENIOR TO THE OLD NOTES HAVE NO SINKING FUND AND HAVE A 15 MAXIMUM INTEREST RATE ABOVE WHICH THE 1325 BASE INTEREST RATE MAY NOT BE INCREASED AS A RESULT OF THE GAS INDEXING FEATURE THE OLD NOTES HAD AN 18 MAXIMUM INTEREST RATE IN CONNECTION WITH THIS EXCHANGE PRESIDIO SAID IT AGREED TO SELL TO CERTAIN INSTITUTIONAL HOLDERS 5625 MILLION OF NEWLY ISSUED 115 SENIOR SECURED NOTES DUE 2000 WITH THE PROCEEDS USED TO PREPAY A PORTION OF THE COMPANY'S BANK DEBT AT THE SAME TIME PRESIDIO SAID ITS EXISTING BANK FACILITY WILL BE AMENDED TO PROVIDE FOR A NEW 25 MILLION REVOLVING CREDIT FACILITY WHEN THE NOTE EXCHANGE IS COMPLETED PRESIDIO'S BANK DEBT WILL BE REDUCED TO 22 MILLION ALL OF WHICH WILL BE DEBT OUTSTANDING UNDER THE NEW CREDIT FACILITY THE TRANSACTIONS ARE EXPECTED TO CLOSE IN EARLY AUGUST AFTER THAT PRESIDIO SAYS IT WILL OFFER TO HOLDERS OF THE REMAINING 25 MILLION OF OLD NOTES THE CHANCE TO EXCHANGE THEM FOR AN EQUIVALENT AMOUNT OF NEW NOTES AND TO PURCHASE AS MUCH AS 1875 MILLION OF NEW SECURED NOTES ON THE SAME TERMS AS THOSE OFFERED TO THE INSTITUTIONAL HOLDERS PROCEEDS OF THAT SALE WILL BE USED TO FURTHER REDUCE PRESIDIO'S BANK DEBT THE COMPANY SAID PRESIDIO IS AN INDEPENDENT OIL AND GAS COMPANY ENGAGED IN ONSHORE OIL AND GAS EXPLORATION DEVELOPMENT AND PRODUCTION IN THE CONTINENTAL US 9307280167 930728 FINANCING BUSINESS INTERNATIONAL SEMITECH MICROELECTRONICS INC INTERNATIONAL SEMITECH MICROELECTRONICS INC OF MARKHAM ONTARIO SAID IT PLANS AN OFFERING IN THE US OF 300 MILLION US OF 10YEAR NOTES IT SAID PROCEEDS WILL BE USED TO FINANCE THE CASH PORTION OF ITS PREVIOUSLY REPORTED AGREEMENT TO BUY 51 OF SINGER CO FROM SEMITECH GLOBAL CO A 42OWNED HONG KONG HOLDING COMPANY FOR 850 MILLION OF CASH AND STOCK 9307280166 930728 FINANCING BUSINESS STARBUCKS CORP STARBUCKS CORP SEATTLE SAID IT BEGAN A PUBLIC OFFERING OF 45 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 THE DEBENTURES WERE PRICED AT 100 OF THEIR FACE AMOUNT AND ARE CONVERTIBLE INTO COMMON SHARES OF THE COFFEE RETAILER AT 60 A SHARE STARBUCKS SAID PROCEEDS WOULD BE USED TO FINANCE EXPANSION AMONG OTHER THINGS ALEX BROWN & SONS INC AND WERTHEIM SCHRODER & CO ARE UNDERWRITING THE OFFERING 9307280165 930728 CYPRUS MINERALS POSTS BIG RISE IN EARNINGS FOR SECOND QUARTER DENVER CYPRUS MINERALS CO REPORTED SLIGHTLY HIGHER OPERATING PROFIT FOR THE SECOND QUARTER WHILE NET INCOME ROSE SIGNIFICANTLY ON A GAIN FROM THE SALE OF A BANKRUPTCY CLAIM THE COMPANY'S OPERATING PROFIT FROM COPPER HOWEVER FELL DUE TO LOWER COPPER PRICES AND HIGHER SMELTING COSTS THE COMPANY REALIZED 93 CENTS A POUND ON ITS COPPER SALES DOWN 10 CENTS A POUND FROM THE YEAREARLIER QUARTER THE NEW SMELTER AT MIAMI ARIZ IS TAKING LONGER TO BRING UP TO FULL AND CONTINUOUS OPERATION THAN THE COMPANY EXPECTED CYPRUS SAID AND HELPED BOOST COPPER PRODUCTION COSTS TO 77 CENTS A POUND FROM 71 CENTS A POUND OPERATING PROFIT FROM COAL IMPROVED SLIGHTLY DUE TO LOWER COSTS BUT THE SMALLER LITHIUM GOLD AND IRONORE OPERATIONS PROVIDED MOST OF THE INCREASE IN OVERALL OPERATING PROFIT OPERATING PROFIT AFTER TAXES AND EXCLUDING THE GAINS AND CHARGES WAS 23 MILLION OR 49 CENTS A SHARE COMPARED WITH 214 MILLION OR 45 CENTS A SHARE A YEAR EARLIER CYPRUS REPORTED NET OF 82 MILLION OR 173 A SHARE COMPARED WITH A LOSS OF 2936 MILLION OR 760 A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED A GAIN OF 59 MILLION OR 124 A SHARE FROM THE SALE OF THE REMAINING PORTION OF THE LTV CORP BANKRUPTCY CLAIM HELD BY CYPRUS THE 1992 QUARTER INCLUDED WRITEDOWNS OF ABOUT 315 MILLION REVENUE ROSE TO 454 MILLION FROM 404 MILLION IN THE FIRST HALF NET WAS 936 MILLION OR 198 A SHARE COMPARED WITH A LOSS OF 3876 MILLION OR 1011 A SHARE A YEAR EARLIER THE LATEST RESULTS INCLUDE GAINS OF 75 MILLION FROM THE SALE OF LTV CLAIMS THE 1992 SIXMONTHS RESULTS INCLUDE WRITEDOWNS OF 315 MILLION REORGANIZATION CHARGES OF 192 MILLION AND A CHARGE FOR ACCOUNTING CHANGES OF 876 MILLION REVENUE ROSE TO 8283 MILLION COMPARED WITH 802 MILLION A YEAR EARLIER 9307280164 930728 MARKETING & MEDIA PEPSICO IS FACING MOUNTING LAWSUITS FROM BOTCHED PROMOTION IN PHILIPPINES BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC MORE THAN A YEAR AFTER A BOTTLECAP PROMOTION DERAILED IN THE PHILIPPINES IS FACING MOUNTING LAWSUITS AGAINST ITS LOCAL BOTTLER AS WELL AS CONTINUED ANTIPEPSI RALLIES AND TERRORIST ATTACKS BY DISGRUNTLED FILIPINOS IN WHAT STARTED AS AN ATTEMPT TO WREST SALES FROM MARKET LEADER COCACOLA CO THE PEPSI BOTTLER BEGAN A NUMBER FEVER PROMOTION IN MAY 1992 HOLDERS OF BOTTLE CAPS WITH THE NUMBER 349 PRINTED ON IT COULD WIN GRAND PRIZES OF ONE MILLION PESOS OR ABOUT 36000 AT CURRENT EXCHANGE RATES BUT AS A RESULT OF WHAT PEPSI HAS CALLED A COMPUTER GLITCH THE WINNING NUMBER SELECTED WAS ONE THAT HAPPENED TO APPEAR ON MORE THAN 500000 BOTTLE CAPS THAT MEANT THE SOFTDRINK BOTTLER PEPSICOLA PRODUCTS PHILIPPINES INC FACED PAYING WINNERS A TOTAL OF MORE THAN 18 BILLION WHEN THE COMPANY ANNOUNCED THE ERROR RIOTING BROKE OUT AT THE BOTTLING PLANT NEAR MANILA THE BOTTLING COMPANY 19OWNED BY PEPSICOLA INTERNATIONAL PEPSICO'S OVERSEAS BEVERAGE UNIT QUICKLY SUGGESTED A PEACE OFFERING 19 APIECE TO PEOPLE WITH THE 349 BOTTLE CAPS UNDER THAT OFFER MADE IN JUNE 1992 THE COMPANY HAS SHELLED OUT ABOUT 10 MILLION TO MORE THAN A HALFMILLION FILIPINOS IN THE MONTHS SINCE THOUSANDS OF OTHERS HAVE PURSUED REMEDIES IN COURT ABOUT 6000 PEOPLE HAVE FILED MORE THAN 600 CIVIL SUITS SEEKING DAMAGES MOSTLY FROM THE PEPSI BOTTLER A COMPANY SPOKESMAN SAID AN ADDITIONAL 5000 OR SO CRIMINAL SUITS MOSTLY CLAIMING FRAUD HAVE BEEN STARTED BY 16000 OTHERS HE ADDED AT PEPSICO'S CORPORATE HEADQUARTERS IN PURCHASE NY A SPOKESMAN SAID THE COMPANY LAST YEAR TOOK STEPS TO COVER ANTICIPATED COSTS IN THE PHILIPPINES HE WOULDN'T DISCUSS SPECIFIC FIGURES I WOULD BE SURPRISED IF THIS WOULD HAVE A SIGNIFICANT FINANCIAL IMPACT ON PEPSI SAID EMANUEL GOLDMAN A PAINEWEBBER INC ANALYST HE SAID THE GREATER DAMAGE IS LIKELY TO BE TO PEPSI'S IMAGE PEPSI WANTS TO BE VIEWED AS A GOOD GUY NOT A BAD GUY HE SAID GOVERNMENT AGENCIES IN THE PHILIPPINES WHICH COULDN'T BE REACHED YESTERDAY HAVE INVESTIGATED THE PEPSI PROMOTION THE PEPSI SPOKESMAN SAID THAT THE COMPANY HASN'T BEEN FOUND GUILTY OF ANYTHING BUT PEPSI HAS ALSO BEEN APPEALING ORDERS TO ARREST 10 OF THE BOTTLINGCOMPANY EXECUTIVES WHO STILL REMAIN FREE THE PEPSI SPOKESMAN SAID IN RECENT MONTHS THERE HAVE BEEN ANTIPEPSI RALLIES IN PHILIPPINE CITIES AND PEPSI BOTTLING PLANTS AND TRUCKS HAVE BEEN RECENT TARGETS OF SABOTAGE INCLUDING AT LEAST ONE GRENADE ATTACK THE COMPANY WON'T COMMENT ON REPORTS OF DEATH THREATS AGAINST ITS OFFICIALS IN APRIL CHRIS SINCLAIR PEPSICOLA INTERNATIONAL'S PRESIDENT FLEW TO MANILA TO DISCUSS THE SITUATION WITH FIDEL RAMOS PRESIDENT OF THE PHILIPPINES WE ARE CONCERNED ABOUT A CAMPAIGN OF TERRORISM BY CRIMINAL ELEMENTS SAID THE PEPSI SPOKESMAN POINTING OUT THAT THE PHILIPPINES ACCOUNTS FOR ABOUT 2 OF PEPSI'S OVERSEAS SALES VOLUME JOE JIMENO ECONOMIC AFFAIRS OFFICER AT THE PHILIPPINE EMBASSY IN WASHINGTON DC SAID THAT SOME OF THE ATTACKS MIGHT BE THE WORK OF HOOLIGANS RATHER THAN DISGRUNTLED BOTTLECAP HOLDERS THE WINNERS DON'T WANT TO JEOPARDIZE THEIR LEGAL NEGOTIATIONS WITH PEPSI HE SAID PEPSI HAS HAD A DIFFICULT DECADE IN THE PHILIPPINES WHERE ITS 20 MARKET SHARE IS OVERSHADOWED BY COCACOLA'S ROUGHLY 78 IN THE EARLY 1980S COKE BOUGHT A STAKE IN ITS PHILIPPINE BOTTLER AND BEGAN AN AGGRESSIVE MARKETING CAMPAIGN EVENTUALLY CAPTURING THE MARKET LEAD FROM PEPSI AT THE SAME TIME PEPSI WAS PLAGUED BY A SCANDAL IN WHICH ITS PHILIPPINE SUBSIDIARY WAS DISCOVERED TO HAVE OVERSTATED PROFITS FROM 1978 TO 1981 MEANWHILE THE PHILIPPINE ECONOMY HAS HAD TWO WEAK YEARS VICTIMIZED BY A VOLCANO ERUPTION REPEATED TYPHOONS AND THE CLOSING OF MILITARY BASES 9307280163 930728 DIVIDEND NEWS LORAL BOOSTS PAYOUT DECLARES 2FOR1 SPLIT POSTS QUARTERLY PROFIT NEW YORK LORAL CORP DECLARED A 2FOR1 STOCK SPLIT AND BOOSTED ITS QUARTERLY DIVIDEND TO 28 CENTS A SHARE ON A PRESPLIT BASIS FROM 25 CENTS THE STOCK SPLIT IN THE FORM OF A STOCK DIVIDEND WILL TAKE EFFECT OCT 7 FOR HOLDERS OF RECORD SEPT 28 SUBJECT TO SHAREHOLDER APPROVAL AT A SPECIAL MEETING SEPT 20 TO INCREASE THE NUMBER OF SHARES OUTSTANDING MEANTIME THE INCREASED QUARTERLY DIVIDEND OF 28 CENTS A SHARE WILL BE PAID SEPT 15 TO SHAREHOLDERS OF RECORD AUG LORAL ALSO REPORTED NET INCOME FOR THE FISCAL FIRST QUARTER ENDED JUNE 30 OF 404 MILLION OR 97 CENTS A SHARE ON MORE SHARES OUTSTANDING COMPARED WITH A YEAREARLIER NET LOSS OF 209 MILLION OR 611 A SHARE AFTER A 2334 MILLION LOSS FROM AN ACCOUNTING CHANGE BEFORE THE EFFECT OF THAT ACCOUNTING CHANGE YEAREARLIER EARNINGS WERE 244 MILLION OR 71 CENTS A SHARE WEIGHTED AVERAGE SHARES INCREASED TO 417 MILLION IN THE LATEST FIRST QUARTER FROM 342 MILLION A YEAR EARLIER SALES FOR THE QUARTER ROSE 25 TO 8495 MILLION FROM 6813 MILLION RESULTS FOR THE LATEST PERIOD INCLUDED EARNINGS OF LORAL VOUGHT SYSTEMS ACQUIRED LAST AUGUST WE EXPECT FURTHER GAINS AS THE YEAR PROGRESSES WITH AT LEAST A 25 IMPROVEMENT IN PERSHARE EARNINGS FOR THE YEAR WITHOUT ACQUISITIONS SAID BERNARD L SCHWARTZ CHAIRMAN AND CHIEF EXECUTIVE OF LORAL A DEFENSE ELECTRONICS AND SPACE COMMUNICATIONS CONCERN LORAL'S BACKLOG AT JUNE 30 WAS 358 BILLION UP FROM 273 BILLION A YEAR AGO AND BOOKINGS ROSE TO 579 MILLION FROM 502 MILLION SPACE SYSTEMS/LORAL WHOSE RESULTS AREN'T CONSOLIDATED WITH LORAL'S HAD SALES OF 125 MILLION BOOKINGS OF 101 MILLION AND A BACKLOG OF 675 MILLION AT THE END OF THE QUARTER IN LATE NEW YORK STOCK EXCHANGE TRADING LORAL WAS QUOTED AT 62125 UP 275 9307280162 930728 MARKETING & MEDIA NEW YORK STATE UTILITIES CREATE MARKETING PROGRAM NEW YORK GOV MARIO CUOMO AND TOP EXECUTIVES OF NEW YORK STATE'S MAJOR UTILITIES ANNOUNCED THE FORMATION OF A FIVEYEAR 5 MILLION MARKETING PROGRAM FOR THE STATE THE PROGRAM CALLED THE ALLIANCE FOR A NEW NEW YORK COMBINES 45 MILLION IN FUNDS FROM 11 STATE UTILITIES WITH 500000 IN STATE MONEY TO DEVELOP A PROGRAM TO ATTRACT AND RETAIN BUSINESSES FOR THE STATE THE MOVE IS PARTLY A RESPONSE TO OTHER STATES' PUBLICITY CAMPAIGNS SAID VINCENT TESE NEW YORK'S ECONOMIC DEVELOPMENT DIRECTOR CITING NEW JERSEY'S IN PARTICULAR HOWEVER MR CUOMO SAID COMPETITION NO LONGER IS JUST THE STATE NEXT DOOR THE GROUP SAID IT PLANS TO EMPHASIZE NEW YORK'S HIGHTECHNOLOGY RESOURCES AND ITS APPEAL TO THE INTERNATIONAL BUSINESS COMMUNITY AS A LOCATION OF CHOICE AS WELL AS SPECIFIC SERVICES THE STATE OFFERS TO BUSINESSES THE PROGRAM WILL TARGET COMPANIES BOTH IN THE US AND ABROAD MR CUOMO SAID POINTING OUT THAT THE STATE ALREADY MAINTAINS OFFICES IN LONDON TOKYO HONG KONG AND ELSEWHERE 9307280161 930728 FINANCING BUSINESS CASCADES INC CASCADES INC KINGSLEY FALLS QUEBEC SAID IT PLANS AN OFFERING IN CANADA OF 75 MILLION CANADIAN DOLLARS US586 MILLION OF 10YEAR 725 CONVERTIBLE DEBENTURES THE FOREST PRODUCTS COMPANY SAID PROCEEDS WILL BE USED TO PAY DEBT 9307280160 930728 TECHNOLOGY & HEALTH MICROSOFT'S WINDOWS NT IS CLEARED FOR PRODUCTION REDMOND WASH MICROSOFT CORP SAID IT RELEASED ITS WINDOWS NT OPERATING SYSTEM AND A RELATED PRODUCT FOR MANUFACTURING INDICATING THE MUCHBALLYHOOED NEW SOFTWARE WILL BE AVAILABLE FOR CUSTOMERS IN ABOUT THREE WEEKS WINDOWS NT IS THE RESULT OF A FOURYEAR EFFORT BY MICROSOFT TO LEAPFROG OTHER OPERATING SYSTEM TECHNOLOGIES AND PUSH THE PERSONAL COMPUTER INTO NEW REALMS IT INITIALLY WAS SCHEDULED FOR SHIPMENT LATE LAST YEAR WINDOWS NT'S INTRODUCTION IS CONSIDERED A MILESTONE FOR MICROSOFT AND PERHAPS FOR THE COMPUTER INDUSTRY DEPENDING ON HOW THE PRODUCT FARES THE SOFTWARE MICROSOFT AND OTHER BOOSTERS BELIEVE COULD CHANGE THE FACE OF COMPUTING BY CREATING SPEEDIER PCS AND NEW KINDS OF HIGHPOWERED AND COMPLEX PC NETWORKS MEANT TO DISPLACE MORE COSTLY MAINFRAMES AND MINICOMPUTERS IN LATE OVERTHECOUNTER TRADING YESTERDAY MICROSOFT CLOSED AT 7550 A SHARE DOWN 275 9307280159 930728 SCHOOLS FAIL TO SERVE NEEDS OF IMMIGRANTS RAND SAYS SANTA MONICA CALIF RAND CORP SAID US SCHOOLS ARE BADLY SERVING TWO MILLION IMMIGRANT CHILDREN RESULTING IN A 50 AVERAGE DROPOUT RATE THAT COULD HARM FUTURE WORKFORCE QUALITY SIX URBAN SYSTEMS WITH THE HIGHEST CONCENTRATION OF IMMIGRANT STUDENTS ARE NEAR COLLAPSE AND LACK FUNDS TO HIRE BILINGUAL TEACHERS THE NONPROFIT RESEARCH GROUP SAID IN A STUDY RELEASED YESTERDAY IN THE SIX SYSTEMS NEW YORK LOS ANGELES SAN FRANCISCO HOUSTON CHICAGO AND MIAMI FOREIGNBORN STUDENTS SPEAK MORE THAN 100 LANGUAGES NO DISTRICT IS ABLE TO PROVIDE TEACHERS WHO SPEAK ALL THE LANGUAGES OF THESE KIDS EVEN FOR THE PURPOSE OF DEALING WITH PRACTICAL MATTERS SUCH AS GOOD MORNING TAKE YOUR COAT OFF' SAID PAUL T HILL COAUTHOR OF THE STUDY THE 50 DROPOUT RATE IS AN AVERAGE OF 57 SCHOOL DISTRICTS SURVEYED BY RAND AND COVERS IMMIGRANTS WHO ENROLLED IN US SCHOOLS AFTER KINDERGARTEN AND LEAVE BEFORE GRADUATION RAND URGED THE FEDERAL GOVERNMENT TO RAISE BY 10FOLD THE 145 MILLION IT SPENDS ON IMMIGRANT EDUCATION PROGRAMS 9307280158 930728 DIVIDEND NEWS LEGG MASON INC LEGG MASON INC BALTIMORE DECLARED A 5FOR4 STOCK SPLIT PAYABLE SEPT 24 TO SHARES OF RECORD SEPT 8 AND BOOSTED THE DIVIDEND 25 BY RETAINING THE 10CENT QUARTERLY DIVIDEND AFTER THE SPLIT THE QUARTERLY IS PAYABLE OCT 25 TO SHARES OF RECORD OCT 8 LEGG MASON IS A REGIONAL SECURITIES AND BROKERAGE COMPANY 9307280157 930728 MARKETING & MEDIA FTC ISSUES REGULATIONS ON 900NUMBER CHARGES WASHINGTON THE FEDERAL TRADE COMMISSION ISSUED FINAL RULES TO REGULATE THE OPERATION OF PAYPERCALL TELEPHONE SERVICES UNDER THE RULES WHICH INCLUDE MINOR CHANGES TO THOSE PROPOSED BY THE AGENCY IN MARCH COMPANIES PROVIDING SOCALLED 900NUMBER SERVICES CAN DISCLOSE THE COSTS OF THE CALLS IN TYPE HALF THE SIZE OF THE 900 NUMBER ITSELF IN PRINT AND TELEVISION ADVERTISEMENTS THE EARLIER PROPOSAL WOULD HAVE REQUIRED COST INFORMATION TO APPEAR IN THE SAMESIZE TYPE AS THE TELEPHONE NUMBER IN ADDITION CONSUMERS WILL HAVE THREE SECONDS TO HANG UP AFTER LISTENING TO A MESSAGE DISCLOSING THE COST OF THE SERVICE INSTEAD OF FIVE SECONDS AS PROPOSED EARLIER BEFORE THEY CAN BE CHARGED IN GENERAL THE REGULATIONS REQUIRE THE SERVICES TO DISCLOSE THEIR COSTS CLEARLY AND CONSPICUOUSLY THE RULES ALSO REQUIRE CALLS COSTING MORE THAN 2 TO BEGIN WITH A MESSAGE DISCLOSING THE PRICE AND THE NAME OF THE COMPANY OFFERING THE SERVICE A COMMISSION OFFICIAL SAID THE FTC IS SATISFIED THAT THE COST INFORMATION STILL WILL BE SEEN EASILY BY CONSUMERS AND THAT THEY WILL HAVE ENOUGH TIME TO HANG UP BEFORE BEING CHARGED FOR A PAYPERCALL SERVICE 9307280156 930728 BROADCASTING NBC ACQUIRES SUMMER GAMES FOR 456 MILLION BY ELIZABETH JENSEN AND GLENN RUFFENACH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AFTER A LONG DAY OF DELIBERATIONS NATIONAL BROADCASTING CO EMERGED LAST NIGHT AS THE WINNER OF THE BROADCAST TELEVISION RIGHTS TO THE 1996 SUMMER OLYMPICS IN ATLANTA AGREEING TO PAY A RECORD 456 MILLION THE WINNING BID WAS JUST ABOVE THE 450 MILLION MINIMUM THAT THE ATLANTA ORGANIZERS AND INTERNATIONAL OLYMPICS COMMITTEE HAD WANTED TO GET FOR THE GAMES THE PAYMENT COMPARES WITH THE 401 MILLION THAT NBC A UNIT OF GENERAL ELECTRIC CO PAID FOR RIGHTS TO THE 1992 SUMMER GAMES IN BARCELONA THE PREVIOUS HIGHEST SUM PAID FOR OLYMPIC RIGHTS NBC AND ITS CABLE PARTNER CABLEVISION SYSTEMS CORP HAD A LOSS ESTIMATED AT 150 MILLION ON THOSE GAMES WITH NBC'S SHARE AN ESTIMATED 100 MILLION LARGELY BECAUSE OF A FAILED ATTEMPT TO SHOW SOME OF THE EVENTS ON THREE CHANNELS OF PAYPERVIEW CABLE KNOWN AS THE TRIPLECAST BECAUSE OF THOSE LOSSES AND THE GENERALLY SOFT MARKETPLACE FOR MOST SPORTING EVENTS ON TELEVISION ABC NBC AND CBS INC THE ONLY THREE NETWORKS ALLOWED TO BID APPROACHED THE ATLANTA NEGOTIATIONS PROCLAIMING EVEN MORE VOCIFEROUSLY THAN USUAL THAT THEY WOULD NOT GET CARRIED AWAY IN THEIR BIDS NBC AGREED TO PAY MORE FOR THE 1996 GAMES DESPITE THE LOSS LAST TIME BECAUSE THEY ARE A MUCH MORE VALUABLE EVENT SAID NBC PRESIDENT ROBERT WRIGHT THE 16 DAYS AND 168 HOURS OF THE ATLANTA GAMES TELEVISED BY NBC WILL INCLUDE EXTENSIVE LIVE PRIMETIME COVERAGE UNLIKE THE BARCELONA GAMES WHICH WERE CARRIED LARGELY ON TAPE DELAY IN ADDITION FOR THE FIRST TIME THE SUMMER GAMES WILL NOT COMPETE FOR ADVERTISING DOLLARS AND VIEWERS' ATTENTION WITH A WINTER OLYMPICS IN THE SAME YEAR THE WINTER GAMES ARE NOW HELD IN OFF YEARS NBC SPORTS PRESIDENT DICK EBERSOL SAID NBC WILL MAKE A PROFIT ON THE GAMES BASING HIS PROJECTION ON EXTENSIVE CONVERSATIONS WITH ADVERTISING EXECUTIVES IN ADDITION NBC'S MORE THAN 200 AFFILIATE STATIONS ARE EXPECTED TO HELP PAY FOR THE GAMES CBS WAS THE LOWEST BIDDER OFFERING 415 MILLION ABC A UNIT OF CAPITAL CITIES/ABC INC BID ABOUT 450 MILLION SAID RICHARD POUND CHAIRMAN OF THE IOC'S TELEVISION NEGOTIATING COMMITTEE AFTER NBC'S BID WAS ACCEPTED MR EBERSOL SAID THE NETWORK ALSO ADDED SEVERAL ELEMENTS TO ITS OFFER INCLUDING AN AGREEMENT TO SHARE REVENUE FROM NETWORK SALES EQUALLY WITH THE IOC ABOVE AND BEYOND THE FIRST 615 MILLION WHICH WILL GO TO NBC NBC WILL ALSO HELP WITH A MAJOR PROMOTIONAL CAMPAIGN WHICH MR POUND VALUED AT 6 MILLION TO 85 MILLION IN ADDITION STARTING THIS YEAR THE NETWORK WILL GIVE ITS OLYMPIC PARTNERS NINE 30MINUTE DAYTIME PROGRAMS ON WEEKENDS FOR OLYMPICSRELATED PROGRAMMING THE IOC WILL DO THE PROGRAMMING AND SELL THE AD TIME FINALLY NBC WILL GIVE THE GAMES THE FIRST HALF HOUR OF ITS JANUARY 1994 SUPER BOWL PREGAME SHOW FOR OLYMPICSRELATED PROGRAMMING WHICH IS VALUED AT MORE THAN 1 MILLION MR EBERSOL SAID THE ADDITIONAL ELEMENTS WERE ADDED BECAUSE WE BELIEVE IN A PARTNERSHIP NBC MADE ITS BID WITHOUT A CABLE PARTNER TO COVER SOME OF THE COSTS MR EBERSOL SAID ALTHOUGH HE DID NOT RULE OUT FINDING SUCH A PARTNER HE SAID NO CABLE NETWORK WAS WILLING TO AGREE TO A RISKSHARING ARRANGEMENT WHICH NBC INSISTED UPON CABLE COMPANIES MAY BE WARY AFTER THE POOR EXPERIENCE CABLEVISION HAD PARTNERING WITH NBC FOR THE PAYPERVIEW TRIPLECAST LAST TIME AROUND THE PARTNERS VASTLY OVERESTIMATED HOW MANY SUBSCRIBERS WOULD BE WILLING TO PAY EXTRA TO RECEIVE MORE THAN 1000 HOURS OF OLYMPIC GAMES ON THREE CABLE CHANNELS OVER 15 DAYS THEY HAD FIRST HOPED FOR THREE MILLION OR MORE SUBSCRIBING HOMES AND ULTIMATELY SIGNED UP ONLY ABOUT 250000 CRITICS SAY THE PARTNERS ALSO OVERPRICED THE PACKAGE CHARGING 125 FOR THE FULL 15 DAYS AND 2995 A DAY FOR INDIVIDUAL ORDERS EVEN AFTER THE PRICE WAS CUT BY ONETHIRD MOST VIEWERS STILL REFUSED TO SIGN UP SOME CABLE EXECUTIVES SUGGEST ANY NEW CABLE VENTURE TO OFFER EXTRA GAMES ON PAYTV SHOULD CHARGE LESS THAN 50 FOR ALL COVERAGE ANY PAYTV VENTURE FOR THE 1996 GAMES COULD ALSO BENEFIT BY THE INCREASING NUMBER OF CABLE HOMES THAT WILL BE ABLE TO GET PAYPERVIEW SERVICES IN ONE CHANGE THE GAMES WILL START WITH OPENING CEREMONIES FRIDAY NIGHT INSTEAD OF THE USUAL SATURDAY TO TAKE ADVANTAGE OF A FULL SATURDAY OF COVERAGE THE 456 MILLION RIGHTS FEE MEANS THAT THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES CAN BREATHE SOMEWHAT EASIER IN ITS FINANCIAL PREPARATIONS FOR 1996 ACOG IS AN ENTITY CREATED TO PUT ON THE GAMES THE MONEY IT RAISES GOES FOR THAT PURPOSE ONLY NOT TO THE CITY OF ATLANTA CURRENTLY THE COMMITTEE IS PROJECTING THAT REVENUE FROM ALL SOURCES TV RIGHTS CORPORATE SPONSORS TICKET SALES AND OTHERS WILL TOTAL 159 BILLION EXPENDITURES ARE ESTIMATED AT 147 BILLION LEAVING A CUSHION OF 116 MILLION ACOG OFFICIALS HAVE SET ASIDE 100 MILLION IN THEIR BUDGET AS AN OPERATING CONTINGENCY LEAVING A NET CASH FLOW OF 16 MILLION BILLY PAYNE PRESIDENT AND CHIEF EXECUTIVE OF THE ATLANTA COMMITTEE SAID LAST NIGHT THAT HE WAS OVERWHELMED AND DELIGHTED WITH NBC'S BID WE IN ATLANTA HAVE MET OUR BUDGET EXPECTATIONS HE SAID TV RIGHTS ALONE ACCOUNT FOR FULLY 35 OF THE ATLANTA COMMITTEE'S BUDGET OR ABOUT 554 MILLION SINCE ATLANTA RECEIVES 60 OF THE FEE FROM THE IOC'S TV NEGOTIATIONS THAT MEANS THE CITY WILL GET ABOUT 275 MILLION FROM NBC WITH 165 MILLION AS ITS SHARE FROM THE ALREADY NEGOTIATED CONTRACT FOR EUROPEAN BROADCAST RIGHTS A FIGURE THAT WAS HIGHER THAN EXPECTED ATLANTA NOW HAS ABOUT 440 MILLION OR ALMOST 80 OF ITS GOAL FOR TV REVENUE PERHAPS THE BIGGEST FINANCIAL HURDLE FOR ATLANTA REMAINS CORPORATE SPONSORSHIPS THE CITY'S OLYMPIC COMMITTEE ORIGINALLY PLANNED TO BRING ABOARD 12 OR SO CORPORATE PARTNERS AS OFFICIALS PREFER TO CALL THEM AT A COST OF ABOUT 40 MILLION EACH ABOUT 80 OF THE SPONSORS WERE SUPPOSED TO BE LINED UP BY LAST SPRING TO DATE HOWEVER ONLY FIVE HAVE SIGNED ON THE DOTTED LINE NATIONSBANK CORP HOME DEPOT INC SARA LEE CORP INTERNATIONAL BUSINESS MACHINES CORP AND ANHEUSERBUSCH COS TWO WEEKS AGO JOHN HANCOCK FINANCIAL SERVICES AGREED TO BECOME A SPONSOR BUT AS ONE OF THREE INSURANCE COMPANIES TO BACK ATLANTA ITS FEE WASN'T DISCLOSED BUT WAS BELIEVED TO BE SIGNIFICANTLY LESS THAN 40 MILLION THE TWO REMAINING INSURERS HAVEN'T YET BEEN IDENTIFIED ATLANTA OFFICIALS NO LONGER PREDICT WHEN ALL THEIR SPONSORSHIP ARRANGEMENTS MIGHT BE COMPLETE BUT MR PAYNE HAS SAID THAT OFFICIALS HERE WILL DEFINITELY SIGN THE CORPORATE BACKERS THEY NEED AND AT THE 40 MILLION FIGURE 9307280155 930728 SALOMON DEBT LINKS RETURNS TO STOCK OF COMPUTER FIRM BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A NEW TWIST ON THE GROWING MARKET FOR DERIVATIVE INVESTMENTS SALOMON INC SOLD 60 MILLION OF THREEYEAR NOTES WHOSE RETURNS ARE LINKED TO THE STOCK PRICE OF A COMPUTER COMPANY THAT HAD NOTHING TO DO WITH THE DEAL THE SECURITIES KNOWN AS EQUITYLINKED SECURITIES OR ELKS PAY INTEREST OF 675 ANNUALLY BUT THEIR PRINCIPAL REPAYMENT IS TIED TO THE STOCK PRICE OF DIGITAL EQUIPMENT CORP THE SECURITIES WHICH ARE LISTED ON THE AMERICAN STOCK EXCHANGE ARE DESIGNED TO APPEAL TO YIELDORIENTED INVESTORS WHO ARE MODERATELY BULLISH ON DIGITAL SAID LARRY BERNSTEIN A SALOMON VICE PRESIDENT THE NOTES ALLOW CERTAIN INSTITUTIONAL INVESTORS SUCH AS INCOMEORIENTED MUTUAL FUNDS TO SIDESTEP RULES THAT WOULD ORDINARILY PREVENT THEM FROM BUYING DIGITAL STOCK DERIVATIVES EXPERTS SAID THESE FUNDS' STATED OBJECTIVES REQUIRE THEM TO STICK WITH ONLY INCOMEPRODUCING INVESTMENTS AND DIGITAL PAYS NO DIVIDEND SAID EMMETT HARTY PRESIDENT OF THE PARALLAX GROUP A STAMFORD CONN DERIVATIVES RESEARCH GROUP IF DIGITAL'S STOCK PRICE FALLS INVESTORS WILL SUFFER THE SAME DAMAGE TO PRINCIPAL AS IF THEY HAD OWNED THE STOCK BUT THEIR LOSSES WILL BE SOMEWHAT OFFSET BY THE 675 ANNUAL INTEREST THEY RECEIVE ON THE ELKS IF DIGITAL'S STOCK RISES THE PRICE APPRECIATION OF THE SECURITIES IS CAPPED AT 35 NO MATTER HOW HIGH THE STOCK GOES INCLUDING INTEREST INCOME THAT WORKS OUT TO A MAXIMUM POSSIBLE RETURN OF ABOUT 16 A YEAR OVER THE THREE YEARS A SPOKESMAN FOR DIGITAL TOOK PAINS TO NOTE THAT THE MAYNARD MASS COMPUTER MAKER HAS NO POSITION IN THE OFFERING THEY ARE FREE TO DO WHAT THEY PLEASE HE SAID OF SALOMON ADDING THAT ALTHOUGH SALOMON DIDN'T ASK THE COMPANY'S PERMISSION TO ISSUE THE DIGITALLINKED NOTES IT DID MAKE A COURTESY CALL TO NOTIFY THEM ABOUT IT IN RECENT MONTHS WHILE DERIVATIVES INSTRUMENTS LINKED TO AN UNRELATED COMPANY'S STOCK HAVE OCCASIONALLY TRADED PRIVATELY AMONG BIG INSTITUTIONAL INVESTORS THE SALOMON ELKS ARE THE FIRST TO BE PUBLICLY TRADED YESTERDAY THE SALOMON ELKS CLOSED AT 3750 ON THE AMEX UNCHANGED FROM THEIR INITIAL LISTING PRICE DIGITAL'S STOCK ROSE 375 CENTS A SHARE TO 37875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9307280154 930728 BUSINESS BRIEF TENNECO AND COASTAL CORP POST GAINS FROM OPERATIONS FOR SECOND QUARTER HOUSTON TWO BIG PLAYERS IN THE NATURAL GAS PIPELINE BUSINESS TENNECO INC AND COASTAL CORP RECORDED IMPROVED OPERATING RESULTS FOR THE SECOND QUARTER IN TENNECO'S CASE THE RESULTS WERE MASKED BY SEVERAL ONETIME ITEMS AND ITS COMPLEX ARRAY OF OTHER BUSINESSES ALTHOUGH TENNECO'S PROFIT FROM CONTINUING OPERATIONS MORE THAN DOUBLED IN THE QUARTER NET INCOME FELL 28 TO 88 MILLION OR 50 CENTS A SHARE FROM 123 MILLION OR 84 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER'S RESULTS INCLUDED A 23 MILLION CHARGE FOR A PREPAYMENT PENALTY FOR THE COMPANY'S EARLY RETIREMENT OF 700 MILLION OF LONGTERM DEBT THE 1992 QUARTER INCLUDES 73 MILLION OF EARNINGS FROM OPERATIONS THAT TENNECO SOLD LAST YEAR REVENUE ROSE 14 TO 348 BILLION FROM 344 BILLION COASTAL SAID NET INCOME ROSE 117 TO 263 MILLION OR 23 CENTS A SHARE FROM 121 MILLION OR 11 CENTS A SHARE BECAUSE OF A COLD WINTER THAT INCREASED BOTH SALES AND PRICES OF NATURAL GAS COASTAL'S PIPELINE AND GAS PRODUCTION BUSINESSES POSTED EARNINGS INCREASES COASTAL ALSO SAID ITS GASOLINE REFINING OPERATIONS IN A LONG SLUMP ARE SHOWING SIGNS OF RECOVERY THE 1993 QUARTER INCLUDED A 25 MILLION CHARGE FOR THE EARLY REDEMPTION OF DEBT REVENUE ROSE 97 TO 263 BILLION FROM 24 BILLION COASTAL'S EARNINGS WERE IN LINE WITH ANALYSTS' FORECASTS AND THE STOCK CLOSED YESTERDAY AT 27 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TENNECO'S RESULTS ALSO WERE IN LINE WITH EXPECTATIONS BUT THE STOCK PRICE FELL SHARPLY BECAUSE OF COMMENTS FROM COMPANY OFFICIALS AT AN ANALYST BREAKFAST YESTERDAY IN NEW YORK TENNECO SHARES SLID 250 TO 48 ON THE BIG BOARD MANAGEMENT INDICATED A REAL NOTE OF CAUTION FOR THE BALANCE OF THE YEAR SAID RONALD BARONE A SECURITIES ANALYST AT KIDDER PEABODY & CO WHO ATTENDED THE BRIEFING MR BARONE REDUCED HIS FULLYEAR EARNINGS ESTIMATE FOR TENNECO TO 240 A SHARE FROM HIS PRIOR FORECAST OF 270 IN PARTICULAR TENNECO'S PACKAGING CORP OF AMERICA SUBSIDIARY WAS HIT HARD BY THE SLUGGISH ECONOMY AND FACES WEAK PROSPECTS FOR THE REST OF THE YEAR THE UNIT'S OPERATING PROFIT SLID TO 30 MILLION IN THE QUARTER FROM 59 MILLION A YEAR EARLIER BECAUSE OF AN INDUSTRY GLUT OF LINERBOARD WHICH IS BASICALLY THE COMODITY SEGMENT OF THE CARDBOARD BOX BUSINESS THE COMPANY SAID ITS AUTOMOTIVE PARTS AND CHEMICAL BUSINESSES WERE ALSO HURT BY WEAK MARKET CONDITIONS WHILE THE NATURALGAS PIPELINE'S PROFIT ROSE OPERATING PROFIT AT TENNECO'S FARM AND CONSTRUCTION EQUIPMENT SUBSIDIARY CASE JUMPED TO 59 MILLION FROM 11 MILLION BECAUSE OF A CONTINUING RESTRUCTURING THE COMPANY SAID 9307280153 930728 THE HUMBLE SANDBAG HAS A NOBLE HISTORY FROM WAR TO FLOODS A GODSEND TO THE MIDDLE WEST IT'S STILL A PRIMITIVE DEVICE AND A LABORINTENSIVE ONE BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL ALTON ILL BALLOONISTS RELY ON THEM FOR BALLAST SEVENTEENTHCENTURY FRENCH ENGINEERS USED THEM TO FORTIFY ARTILLERY SOLDIERS THE WORLD OVER SWEAR BY THEM FOR BUILDING BUNKERS NOW THE HUMBLE SANDBAG IS FENDING OFF THE FLOOD WATERS OF THE MISSISSIPPI AND ITS TRIBUTARIES PROVING ITS WORTH TO PEOPLE IN THE MIDWEST IT ISN'T SOPHISTICATED HIGHTECH SEXY EXPENSIVE OR NEW SAYS WALTER HAYS A NATURALDISASTERS EXPERT FOR THE US GEOLOGICAL SURVEY BUT HE SAYS THE SIMPLE DEVICE SURE DOES THE JOB ABOUT 100 MILLION SANDBAGS HAVE BEEN ORDERED TO HELP FIGHT FLOOD WATERS IN THE MIDWEST ACCORDING TO THE TEXTILE BAG & PACKAGING ASSOCIATION THE STATEOFTHEART FLOODFIGHTING MODEL THESE DAYS IS THE 40POUND CAPACITY ARMY CORPS OF ENGINEERSISSUE BAG IT'S A SCRATCHY SANDCOLORED PIECE OF WOVEN PLASTIC THAT MEASURES 14 BY 26 INCHES FACSIMILES IN USE RANGE FROM GIANT PLASTIC GARBAGE BAGS TO BURLAP POTATO SACKS AND CORNSHIPPING SACKS TRADITIONALLY MOST SANDBAGS HAVE BEEN OF MILITARY USE SHELTERING TROOPS FROM ENEMY FIRE HOWARD ROSEN DIRECTOR OF THE PUBLIC WORKS HISTORICAL SOCIETY IN EVANSTON ILL SAYS EUROPEANS WERE USING THE SANDBAG IN THE 1600S TO FORTIFY DEFENSES AND ANCHOR ARTILLERY PIECES I'M SURE HE SAYS IT HAS AN EVEN MORE ANCIENT HERITAGE DID THE EARLY EGYPTIANS USE SANDBAGS TO TAME THE FLOODPRONE NILE HISTORIANS AREN'T CERTAIN BUT THE EGYPTIANS PRACTICED FLOOD CONTROL ROUND ABOUT 5000 BC THEY DEPICTED BAGS OF GRAIN IN TOMB PAINTINGS AND HAD PLENTY OF SAND CLOSE AT HAND SO IT IS POSSIBLE THAT SANDBAGGING IS AT LEAST THAT OLD BAGGERS ALONG THE MISSISSIPPI PROBABLY AREN'T THINKING MUCH OF ANCIENT EGYPT HERE IN THIS SMALL MISSISSIPPI RIVER TOWN MIKE METHE A 40YEAROLD GRAPHIC DESIGNER FROM UPSTATE TAKES A REST FROM THE SWEATY HUMAN CHAIN PASSING BAGS TO THE LEVEE THERE'S A CRAMPING UP IN MY FOREARMS HE COMPLAINS AS HE BENDS HIS ELBOWS MY FINGERS CLOSE UP SO I HAVE TO PRY THEM APART BUT ALL ARE GRATEFUL TO THE SANDBAG A CHEAP AND READY LASTRESORT DEFENSE AGAINST THE DELUGE ABSORBENT FILLER BE IT SAND CLAY OR DIRT IS NEARLY ALWAYS OBTAINABLE FROM A LOCAL SOURCE BAGS WHICH COST ABOUT 40 CENTS APIECE PREVENT THEIR CONTENTS FROM WASHING AWAY AND CONFORM TO ONE ANOTHER IN MAKING A BARRIER OLD AS THE HILLS SANDBAGS HAVE MADE TWO TECHNOLOGICAL LEAPS IN RECENT HISTORY TODAY THEY ARE MASSPRODUCED FROM MEXICO TO THAILAND AND MOST ARE MADE OF POLYPROPYLENE A LIGHT NONBIODEGRADABLE PLASTIC BURLAP ONCE PREFERRED DETERIORATES IN STORAGE AND SMELLS BAD WHEN WET BUT VOLUNTEERS COMPLAIN THAT THE POLYPROPYLENE BAGS BREAK NORMALLY A SUBSTANDARD BAG WOULD FLUNK THE CORPS OF ENGINEERS TEST SOMEBODY LIFTS A FILLED BAG FOUR FEET OFF A CEMENT FLOOR DROPS IT THREE TIMES ON ITS FACE ITS SIDE AND ITS BOTTOM IF THE SAND SPLATTERS THE BAG IS REJECTED BUT UNTESTED BAGS IN PROFUSION HAVE MADE IT TO THE FLOOD SITE AND FILLING THEM IS HEAVY AND DEBILITATING WORK HERE IN ALTON LINDA DEIG A 41YEAROLD PHYSICAL THERAPIST FROM EVANSVILLE IND IS RECOVERING FROM HEAT EXHAUSTION BOB CASE 28 OF EFFINGHAM ILL IS COMPLAINING OF LOWER BACK PAIN AND THOMAS SIMPSON 15 FROM WOOD RIVER ILL SHOWS OFF HIS REDSTREAKED ARMS SCABBED FROM HANDLING BAGS GIVEN ADVANCES IN SANDBAG TECHNOLOGY WHY HASN'T THIS FILLING AND HEAVING PROCESS BEEN AUTOMATED INVENTOR CORDELL LUNDAHL PRESIDENT OF THE NATIONAL CONGRESS OF INVENTOR ORGANIZATIONS THINKS HE KNOWS THE ANSWER IT'S JUST A MATTER OF MONEY HE SAYS ADDING THAT BETWEEN BIG FLOODS THERE IS NO MARKET MR LUNDAHL WHO CLAIMS TO HOLD 166 PATENTS SAYS HE WOULD ELIMINATE MUCH OF THE BACKBREAKING LABOR BY AFFIXING A FUNNEL TO THE BACK OF A SAND TRUCK THE FUNNEL WOULD POUR SAND INTO A BAGGING MACHINE THAT WOULD SEAL THEM AND SEND THEM OFF TO A CONVEYOR BELT THAT WOULD RUN THEM UP TO THE LEVEE BUT IN PRACTICE SANDBAGGING USUALLY WINDS UP BEING A LABORINTENSIVE EFFORT BY LARGE NUMBERS OF VOLUNTEERS WHO MAY NOT KNOW WHAT THEY ARE DOING AND EVEN WHEN THEY DO GET QUICK TIPS FROM EXPERTS SANDBAGGING REMAINS THE WORK OF AMATEURS TO TIE OR NOT TO TIE TO SHOVEL THE SAND OR USE A TROUGH AND WHAT ABOUT HOW TO ARRANGE THE FILLED BAGS TO THE BEST EFFECT CLYDE SCOTT A SANDBAGGING SPECIALIST AT THE CORPS' DISTRICT OFFICE IN VICKSBURG MISS SUGGESTS THAT THE SIMPLE QUICKFILL TROUGH FOR POURING SAND DIRECTLY INTO BAGS BEATS SHOVELING THE CONTRAPTION MADE OF PLYWOOD AND TWOBYFOURS STANDS ABOUT FOURFEET HIGH SAND TRAVELS THROUGH THE TROUGH AND INTO EACH BAG BUT MOSTLY DOWN ON THE FLOOD PLAIN PEOPLE JUST DIG IN WITH THEIR SHOVELS AND MUTILATE THE KNUCKLES OF THE MEN AND WOMEN LEFT HOLDING THE BAGS MR SCOTT ALSO ADVISES AGAINST TYING THE BAGS A CINCHED BAG CREATES A POCKET NEAR THE KNOT WHERE WATER CAN FLOW IN ERODING A SANDBAG WALL HE SAYS IT'S BETTER HE SAYS TO JUST FOLD OVER THE OPEN END THAT WAY ANOTHER BAG CAN REST ON THE FLATTENED END MAKING A TIGHT FIT VOLUNTEERS IN ALTON KNOW NOTHING ABOUT THAT MARGARET OOLEY A 44YEAROLD INSURANCE MARKETER FROM FISHERS IND HAS BEEN TYING FOR HOURS AND HAS A BLISTERED HAND TO SHOW FOR IT THE CORPS' MR SCOTT RECOMMENDS THAT WORKERS STACK BAGS LIKE BRICKS TO CREATE A LEVEE THE BAGS SHOULD LIE PARALLEL TO THE RIVER WITH STAGGERED JOINTS FOR THE TIGHTEST FIT HE SAYS BUT IN ALTON WHERE THE BAGS LIE HELTERSKELTER ALONG THE LEVEE POOLS OF WATER SEEPING THROUGH ARE GROWING THE POOLS MUST THEN BE PUMPED ONCE THE FLOOD WATERS HAVE RECEDED THE WORST PROBLEM WITH SANDBAGS WILL BE DISPOSING OF THEM COLLECTION AND DISPOSAL CAN BE COMPLICATED AFTER THE 1983 FLOODING OF SALT LAKE COUNTY IN UTAH TO CITE ONE PRECEDENT THE COUNTY PUBLICWORKS DEPARTMENT FACED A MOUNTAIN OF SOGGY DEBRIS NEIL STACK ASSISTANT DIRECTOR FOR PUBLIC WORKS THERE SAYS BURLAP WAS LEFT TO DECOMPOSE BUT THE POLYPROPYLENE BAGS THAT WERE USED DON'T DECOMPOSE AND HAD TO BE SHOVELED UP BY FRONTEND LOADERS AND TRUCKED TO A BIG FIELD THERE ROAD GRADERS DROVE OVER THEM AND SPLIT THEM OPEN EMPTY SACKS WERE COLLECTED AND TRUCKED TO A LANDFILL A FEW UTAH RESIDENTS HAVE PERMANENT FLOOD ARTIFACTS SOME HAD FILLED THEIR BAGS WITH SAND AND CEMENT WHICH HARDENED WHEN THEY CAME IN CONTACT WITH FLOOD WATERS LANDSCAPING OVER THEM WAS JUST ABOUT THE ONLY WAY TO PUT THEM OUT OF SIGHT AND MIND FOR NOW ALTON RESIDENTS ARE TOO BUSY TO THINK ABOUT THE AFTERMATH OF THE DISASTER IN PROGRESS 9307280152 930728 ECONOMY REPORTS SHOW LOW CONFIDENCE STEADY INFLATION CONFERENCE BOARD SURVEY FINDS CONSUMERS DOUBT ECONOMY IS RECOVERING BY COLLEEN AE SLEVIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER CONFIDENCE CONTINUED TO SLIP THIS MONTH SHOWING THAT AMERICANS ARE STILL UNCERTAIN ABOUT THE ECONOMIC FUTURE ACCORDING TO A NEW CONFERENCE BOARD SURVEY BUT IN SOME BRIGHT NEWS FOR THE ECONOMY INFLATION SEEMS TO BE UNDER CONTROL ACCORDING TO A SEPARATE LABOR DEPARTMENT REPORT THE EMPLOYMENT COST INDEX ROSE 09 DURING THE THREE MONTHS ENDED IN JUNE DOWN A BIT FROM THE 1 CHANGE RECORDED DURING THE PREVIOUS QUARTER THE INDEX WHICH SHOWS THE CHANGE IN HOW MUCH EMPLOYERS SPEND ON WAGES SALARIES AND BENEFITS FOR THEIR EMPLOYEES HASN'T SHOWN ANY SIGN OF ACCELERATION RECENTLY HOVERING AROUND 1 SINCE AT LEAST THE SECOND HALF OF 1991 THE CONFERENCE BOARD A NONPROFIT BUSINESS RESEARCH GROUP SAID ITS CONSUMER CONFIDENCE INDEX WAS DOWN LESS THAN ONE POINT TO 577 FOR JULY BRINGING THE TOTAL DECLINE IN THE INDEX THIS YEAR TO 19 POINTS CLEARLY THE LATEST MESSAGE FROM THE CONSUMER STRONGLY SUGGESTS THAT THE ECONOMY STILL FAILS TO SHOW ANY CONVINCING SIGNS OF A VIGOROUS RECOVERY SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE BOARD'S CONSUMER RESEARCH CENTER ABOUT 27 OF THE 5000 HOUSEHOLDS SURVEYED BELIEVE THERE WILL BE FEWER JOBS IN THE NEAR FUTURE THAT'S UP FROM 23 IN JUNE THE SURVEY SAID THIS FEAR OF DECLINING EMPLOYMENT PROSPECTS HAS SLOWED SPENDING PLANS TO BUY CARS AND MAJOR APPLIANCES FELL IN JULY TO THEIR LOWEST LEVEL THIS YEAR PLANS TO BUY HOMES REMAINED THE SAME WHILE THE LATEST EMPLOYMENT COST INDEX SUGGESTS STABILITY SOME REGIONS OF THE COUNTRY THAT ARE PICKING UP STEAM ECONOMICALLY ARE STARTING TO SEE FASTER INCREASES ACCORDING TO MIKE NIEMIRA ECONOMIST AND VICE PRESIDENT OF MITSUBISHI BANK IN NEW YORK NOTING THAT THE RISING COSTS COULD EAT INTO PROFITS HE PREDICTED IN THE NEAR TERM THE PROFIT IMPLICATIONS WILL TRIGGER HIGHER PRICES SEPARATELY JUNE BUILDING PERMITS WERE REVISED TO A 1115000 ANNUAL RATE DOWN 05 FROM THE MAY ANNUAL RATE OF 1121000 PERMITS THE COMMERCE DEPARTMENT SAID THE JUNE LEVEL EARLIER HAD BEEN ESTIMATED AS 1106000 DOWN 13 FROM MAY THE COMMERCE DEPARTMENT TYPICALLY REVISES BUILDING PERMITS FIVE BUSINESS DAYS AFTER ITS MONTHLY HOUSING STARTS REPORT IS RELEASED THE JUNE HOUSING STARTS REPORT WAS RELEASED ON JULY 20 ALL THE FIGURES HAVE BEEN SEASONALLY ADJUSTED 9307280151 930728 TECHNOLOGY & HEALTH STRATUS PREDICTS DROP IN YEAR'S NET STOCK FALLS SHARPLY BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL MARLBORO MASS STRATUS COMPUTER INC'S STOCK DROPPED SHARPLY AFTER IT POSTED FLAT SECONDQUARTER NET INCOME AND PREDICTED 1993 EARNINGS WILL BE SLIGHTLY LOWER THAN ITS 1992 EARNINGS OF 243 A SHARE THE MAKER OF FAULTTOLERANT COMPUTERS SAID THE FORECAST REFLECTS COMPETITIVE PRESSURES AND WORLDWIDE ECONOMIC DOLDRUMS ANALYSTS HAD PREDICTED THE COMPANY WOULD EARN ABOUT 260 A SHARE THIS YEAR IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE STRATUS SHARES CLOSED AT 2375 DOWN 550 OR 19 STRATUS EARNED 135 MILLION OR 57 CENTS A SHARE COMPARED WITH 135 MILLION OR 58 CENTS A SHARE A YEAR EARLIER ON FEWER SHARES OUTSTANDING REVENUE ROSE 57 TO 1241 MILLION FROM 1174 MILLION DESPITE THE LOWER LEVEL OF THE STOCK SHAO WANG AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO SAID HE WAS STILL NEGATIVE ON IT THEIR GROWTH RATE IS DIMINISHING MR WANG SAID AS THE COMPANY MOVES INTO LOWERMARGIN COMPUTERS THAT RARELY FAIL AS CONTRASTED WITH ITS FLAGSHIP VIRTUALLY FAILSAFE SYSTEMS FOR BANKING AND OTHER APPLICATIONS MR WANG LOWERED HIS 1993 PERSHARE EARNINGS ESTIMATE FOR STRATUS YESTERDAY TO 225 FROM 260 WILLIAM E FOSTER CHIEF EXECUTIVE OFFICER SAID IN A NEWS RELEASE THAT SECONDQUARTER GROWTH WAS SLOWED BY A 62 DECLINE IN SALES OF ITS COMPUTERS BY INTERNATIONAL BUSINESS MACHINES CORP AND A 78 DECLINE IN SALES BY ITALY'S ING C OLIVETTI & CO SALES BY IBM AND OLIVETTI WHICH PUT THEIR NAME ON STRATUS MACHINES HAVE DECLINED FASTER THAN STRATUS EXPECTED ADDED MICHAEL MCCONNELL TREASURER IF YOU PEEL THAT AWAY THE OTHER PARTS OF THE COMPANY ARE DOING PRETTY WELL HE SAID WORLDWIDE DIRECT SALES DURING THE SECOND QUARTER ROSE 12 AND DOMESTIC DIRECT SALES ROSE 20 COMPARED WITH YEAREARLIER FIGURES MR FOSTER SAID SALES IN THE UK AND JAPAN WERE UP BUT WERE OFFSET BY AN 11 DECLINE IN CONTINENTAL EUROPEAN SALES SALES TO ASIAN/PACIFIC COUNTRIES OTHER THAN JAPAN ALSO DROPPED COMPARED WITH LAST YEAR MR FOSTER SAID MR FOSTER SAID STRATUS'S FORECAST OF LOWER 1993 EARNINGS REFLECTS THE INCREASINGLY COMPETITIVE NATURE OF OUR MARKETS AND THE CONTINUED SLUGGISHNESS OF WORLD ECONOMIES LEADING TO SLIGHTLY LESS GROWTH THAN PREVIOUSLY ANTICIPATED IN THE SECOND HALF HE ADDED THAT THE COMPANY ALSO SEES A SLIGHTLY GREATER DECLINE IN GROSS MARGINS THAN EXPECTED MR MCCONNELL SAID STRATUS EXPECTS 10 TO 15 REVENUE AND EARNINGS GROWTH IN 1994 VS 1993 AS A PRELIMINARY ESTIMATE IN THE FIRST HALF EARNINGS FELL 10 TO 223 MILLION OR 94 CENTS A SHARE FROM 249 MILLION OR 106 A SHARE A YEAR EARLIER REVENUE ROSE 49 TO 2388 MILLION FROM 2276 MILLION 9307280150 930728 LETTERS TO THE EDITOR NOBODY'S BUSINESS BUT THEIR OWN TERRY EASTLAND'S JULY 7 RULE OF LAW COLUMN THE COUNTRY CLUB SET AT JUSTICE RECOUNTS THE DILEMMA FACING REPUBLICAN SENATORS IN DEALING WITH THE MEMBERSHIP IN A DISCRIMINATORY PRIVATE CLUB OF ELEANOR ACHESON PRESIDENT CLINTON'S NOMINEE TO HEAD THE JUSTICE DEPARTMENT'S OFFICE OF POLICY DEVELOPMENT THE ANSWER IS TO TAKE THE HIGH GROUND THEIR DEMOCRAT COLLEAGUES REFUSED TO TREAD THE PAST 12 YEARS ABSENT SOME ILLEGAL OR IMMORAL PURPOSE A PERSON'S ASSOCIATIONS WITH FRIENDS AND COLLEAGUES SHOULD NOT BE SUBJECT TO GOVERNMENT REVIEW OR APPROVAL ELEANOR ACHESON HAS AS MUCH RIGHT TO PRIVATELY ASSOCIATE OR NOT ASSOCIATE WITH OTHERS IN A CLUB SETTING AS SHE DOES TO DECIDE WHO OR WHO NOT TO INVITE TO HER HOME ALTHOUGH WE MAY GAIN INSIGHT INTO A PERSON'S CHARACTER BY HIS OR HER VOLUNTARY ASSOCIATIONS WITH IMMORAL PEOPLE NAZIS GANGSTERS ETC THE ISSUE IS MORE COMPLEX WHEN VIEWING WITH WHOM A PERSON DOES NOT ASSOCIATE AT ANY GIVEN MOMENT ABSENT OTHER EVIDENCE OF BAD INTENT THE FACT THAT PEOPLE SOMETIMES CHOOSE TO DINE TALK PLAY GOLF OR OTHERWISE ASSOCIATE WITH FRIENDS OR ACQUAINTANCES OF ONE SEX RELIGION OR RACE DOES NOT LOGICALLY EVIDENCE A SINISTER INTENTION TOWARD PEOPLE OF OTHER RACES OR RELIGIONS OR ANOTHER SEX WHEN OUR GOVERNMENT IN THIS CASE THE SENATE CONSIDERS REFUSING A QUALIFIED CANDIDATE A POSITION BASED UPON WHOM HE OR SHE DINES OR PLAYS GOLF WITH THEN OUR GOVERNMENT HAS EXCEEDED ITS RIGHTFUL AUTHORITY IT WAS WRONG FOR THE DEMOCRATS TO DO IT TO REPUBLICAN NOMINEES AND IT WOULD BE EQUALLY WRONG FOR REPUBLICANS TO DO IT TO DEMOCRAT NOMINEES SEN LARRY PRESSLER AND HIS GOP COLLEAGUES OUGHT TO TAKE THE OPPORTUNITY TO ASSIST THE DEMOCRATS OUT OF THEIR HYPOCRISY BY JOINTLY FORMULATING NEUTRAL STANDARDS CONCERNING CLUB MEMBERSHIP FOR ALL NOMINEES THAT RECOGNIZE THE RIGHT TO FREELY ASSOCIATE AND THE RIGHT TO PRIVACY 9307280149 930728 REVIEW & OUTLOOK EDITORIAL SELFFULFILLING PROPHECY IN OUR INITIAL COMMENTS ON THE DEATH OF VINCENT FOSTER WE REMARKED THAT THE DEATH BY GUNSHOT OF A HIGH WHITE HOUSE OFFICIAL IS BOUND TO BE TROUBLING AND COMMENDED THE ANNOUNCED JUSTICE DEPARTMENT INVESTIGATION WE ADDED A DIRECT APPOINTMENT SUCH AS SPECIAL COUNSEL WITHIN JUSTICE WOULD MAKE CLEAR WHO IS IN CHARGE AND DIRECTLY RESPONSIBLE NOW MR FOSTER WAS A MEMBER OF THE INNER CIRCLE OF THE PRESIDENT OF THE UNITED STATES IN HIS EULOGY FOR HIS BOYHOOD FRIEND THE PRESIDENT SAID MR FOSTER'S FRIENDS FOUND HIM A GREAT PROTECTOR THE WHITE HOUSE COUNSEL'S OFFICE HANDLES SENSITIVE PRESIDENTIAL ISSUES FOR EXAMPLE THE STILLUNCOMPLETED BLIND TRUST FOR THE FIRST COUPLE'S FINANCIAL ASSETS MR FOSTER A FIRSTRATE LAWYER AND STEELED LITIGATOR WAS SUDDENLY FOUND DEAD APPARENTLY KILLED WITH AN ANTIQUE HANDGUN HE LEFT NO SUICIDE NOTE HIS ARKANSAS FRIENDS DO NOT CONSIDER HIM A LIKELY SUICIDE SINCE HIS DEATH THERE HAVE BEEN REPORTS THAT HE WAS DISPIRITED IN HIS LAST FEW WEEKS BUT THE WASHINGTON TIMES REPORTED THAT ONE ANONYMOUS SOURCE TOLD IT HE'D DISCUSSED DEPRESSION WITH HIS BROTHERINLAW FORMER REP BERYL ANTHONY AND THAT MR ANTHONY RESPONDED THERE'S NOT A DAMN THING TO IT THAT'S A BUNCH OF CRAP HE WAS NOT CHEWED UP' BY WASHINGTON DOUG BUFORD A LITTLE ROCK LAWYER FRIEND OF MR FOSTER TOLD THE WASHINGTON POST I RESENT THAT SUGGESTION VINCE WAS SUCH AN ABLE MAN I THINK MAYBE THE INCREDIBLE PRESSURE THE WORKLOAD EXHAUSTED HIM AND THAT WAS PART OF IT BUT ULTIMATELY SOMETHING WAS BADLY ASKEW SOMETHING SO WRONG IT COULD MAKE HIM THINK HIS THREE KIDS COULD BE BETTER OFF WITHOUT HIM THESE CIRCUMSTANCES CALL FOR A SERIOUS INVESTIGATION GOING WELL BEYOND THE PARK POLICE'S ROUTINE HANDLING OF A CORPSE AT LEAST SO IT SEEMS TO US AND AT LEAST SOME OTHERS IN A COLUMN CONCENTRATING ON THE PERSONAL ASPECTS OF THE SUICIDE THE POST'S MEG GREENFIELD TOOK PAINS TO OBSERVE I THINK IT IS BOTH NECESSARY AND RIGHT THAT THE DEATH BE INVESTIGATED VIGOROUSLY BY POLICE AND JUSTICE DEPARTMENT OFFICIALS AS IS BEING DONE AND ALSO THAT THE PRESS NOT IGNORE THE QUESTIONS RAISED BY THE UNACCOUNTABLE VIOLENT DEATH OR TURN AWAY FROM THE PURSUIT OF THE ANSWERS TO THEM FOR THERE ARE CLEARLY IDENTIFIABLE PUBLIC QUESTIONS YET TO BE ANSWERED ONE HOPES IN A WAY THAT WILL NOT NEEDLESSLY OR CLUMSILY INTENSIFY PUBLIC GRIEF THE VIGOROUS INVESTIGATION HAS NOT TAKEN PLACE AND APPARENTLY WILL NOT WHITE HOUSE COUNSEL BERNARD NUSSBAUM SORTED THROUGH MR FOSTER'S PAPERS REMOVING ANY THAT FELL UNDER ATTORNEYCLIENT PRIVILEGE WITH THE PRESIDENT AND GAVE US HIS WORD THAT NOTHING SHED LIGHT ON THE SUICIDE SO NOTHING WILL BE DONE TO TELL THE PUBLIC WHY SO SENSITIVE AN OFFICIAL TOOK HIS OWN LIFE OR FOR THAT MATTER REASSURE US THAT HE INDEED DID THE MYSTERY WE SUSPECT WILL HAUNT THE WHITE HOUSE AS FURTHER SCANDALS POP UP AS THEY DO IN MOST ADMINISTRATIONS BUT IN MOST ADMINISTRATIONS PRESIDENTS DO HAVE THEIR WAY PRESIDENT CLINTON'S FIRST REACTION TO THE SUICIDE WAS WE'LL JUST HAVE TO LIVE WITH SOMETHING ELSE WE CAN'T UNDERSTAND DESPITE SECOND THOUGHTS AT JUSTICE IT SEEMS THAT THE PRESIDENT'S VIEW WILL NOT ONLY PREVAIL BUT BECOME A SELFFULFILLING PROPHECY 9307280148 930728 PEPPERAND SALT TREMENDOUS OF LATE IS TO GET IT STRAIGHT HONEST POLITICAL PITCH STAINLESS SPIEL CANDIDATE FOR REELECTION INCOMEBENT 9307280147 930712 LETTERS TO THE EDITOR SEX IT'S OK ONCE YOU GET USED TO IT I WORK WITH A PROGRAM IN PRINCETON NJ CALLED HITOPS HEALTH INTERESTED TEENS OWN PROGRAM ON SEXUALITY WHICH PROVIDES GYNECOLOGICAL CARE FOR ADOLESCENT GIRLS AND SEXUALITY EDUCATION IN THE SCHOOLS AND COMMUNITY OUR PROGRAM IS JUST DOWN THE ROAD FROM THE WEST WINDSORPLAINSBORO HIGH SCHOOL SEXUALITY CLASS DESCRIBED IN THE JUNE 21 EDITORIAL PAGE ARTICLE SEX PREP NOT SEX ED BY EV KONTOROVICH WHO IS A SENIOR AT THAT SCHOOL HE REPORTED THAT HE WAS SUBJECTED TO A HANDS ON APPROACH TO LEARNING ABOUT THE METHODS OF CONTRACEPTION DESCRIBING A LIFESIZE PLEXIGLAS PENIS A PLASTIC FEMALE PELVIC MODEL CONDOMS SPONGES STICKY FINGERS GIGGLES AND RED FACES SOUNDS LIKE LEARNING WAS TAKING PLACE TO ME MR KONTOROVICH IMPLIED THAT THE CLASS WAS VERY UNCOMFORTABLE FOR THE STUDENTS AND THE ACTIVITY WAS UNNECESSARY BECAUSE CONTRACEPTIVES COME WITH WRITTEN INSTRUCTIONS HE MISSED THE POINT THIS WAS NOT A CLASS ON MANUAL DEXTERITY IT WAS AN EXERCISE IN DESENSITIZATION NOT ONLY WERE STUDENTS ACQUIRING INFORMATION IN A MORE MEMORABLE WAY THAN IF THEY HAD HEARD IT IN A LECTURE BUT THEY ALSO HAD AN OPPORTUNITY TO FACE THEIR DISCOMFORT IN A SAFE ENVIRONMENT ONE OF THE BARRIERS TO CONTRACEPTIVE AND CONDOM USE IS THE FEAR OF FEELING STUPID WHEN YOU TALK ABOUT IT WHEN YOU BUY IT AND WHEN YOU USE IT THIS TEACHER IS ABSOLUTELY RIGHT THAT ACTIVITYBASED EDUCATION IS WHERE KIDS LEARN WHETHER IT BE GEOGRAPHY OR SEXUALITY AND ACCORDING TO OTHER STUDENTS AT WEST WINDSORPLAINSBORO THEIR SEX ED COURSES DO INCLUDE FAR MORE THAN JUST MECHANICAL INSTRUCTION UNFORTUNATELY WELLTAUGHT COMPREHENSIVE FAMILY LIFE PROGRAMS ARE NOT TO BE FOUND IN MANY SCHOOLS EVEN WHERE SEXUALITY EDUCATION IS MANDATED IT IS FREQUENTLY DUMPED ON PHYSICAL ED AND DRIVER'S ED TEACHERS WHO MAY BE ILLPREPARED FOR THE SUBJECT MATTER OR MUST SQUEEZE SEXUALITY SOMEWHERE BETWEEN THE HEIMLICH MANEUVER AND ATHLETE'S FOOT IF WE TRAINED OUR TEACHERS PROPERLY AND GAVE SEXUALITY EDUCATION PRIORITY IN THE CURRICULUM THEY WOULD BE ABLE TO DISCUSS POSTPONING SEXUAL INVOLVEMENT VALUES CLARIFICATION RELATIONSHIPS AND COMMUNICATION HELP KIDS LEARN HOW TO TALK WITH THEIR PARTNERS EXPLORE THE CAUSE AND PREVENTION OF ABUSIVE RELATIONSHIPS UNWANTED PREGNANCY AND HIV YOUNG MR KONTOROVICH DISPLAYS A DEGREE OF CULTURAL ELITISM UNUSUAL FOR A TEENAGER HIS ARTICULATE PROSE AND UPCOMING MATRICULATION AT THE UNIVERSITY OF CHICAGO LEADS ME TO ASSUME THAT HE AND HIS CLASSMATES COME FROM REASONABLY EDUCATED AND REASONABLY WELLOFF FAMILIES JUST AS I DID PEOPLE LIKE US REALLY DON'T NEED AN INSTRUCTIONAL COURSE ON HOW TO PLACE A CONDOM ON A PENIS OR EVEN HOW TO INSERT A FEMININE SPONGE WE HAD THE RESOURCES AND THE CURIOSITY TO EASILY GET AND UTILIZE THAT SORT OF KNOWLEDGE PERHAPS OUR SCHOOLS WOULD HAVE BEEN BETTER DIRECTED ALLOWING US TO ATTEND ARCANE PHILOSOPHICAL COURSES ON SEX LOVE MORALITY AND ABSTINENCE CEREBRAL PEOPLE LOVE THAT SORT OF STUFF MR KONTOROVICH DOES NOT SEEM TO UNDERSTAND THAT THERE IS A VAST UNDERCLASS IN THIS COUNTRY THAT DOES NEED SEX PREP IT INCLUDES THE MORE THAN 60 OF BLACK TEENAGE UNWED MOTHERS THEY NEED TO BE EXPOSED AND DESENSITIZED TO THE MECHANICS OF PUTTING A CONDOM ON A PENIS YOUNG MALES NEED TO BE DESENSITIZED TO THE USE OF A CERVICAL SPONGE AND YOUNGSTERS NEED TO KNOW THE RESOURCES AVAILABLE THAT CAN GET THEM CONTRACEPTIVE PILLS CHEAPLY AND CONFIDENTIALLY ENJOY YOUR YOUTH AND YOUR STUDENT YEARS MR KONTOROVICH I'M SURE YOU WILL FIND MANY CEREBRAL PEOPLE AT THE UNIVERSITY OF CHICAGO WHO WILL BE MORE THAN WILLING TO SIT DOWN WITH YOU AND ENGAGE IN LONG SERIOUS DISCUSSIONS ON THE VALUES OF ABSTINENCE LOVE MORALITY ETC BUT WHEN LUST KICKS IN AND IT WILL SOME DAY PLEASE REMEMBER YOUR SEX PREP COURSE SEE RELATED LETTERS LETTERS TO THE EDITOR PLEXIGLAS SEX ORGANS WOULD MAKE EROS BLUSH WSJ JULY 28 1993 9307120027 YY93 MM07 9307280146 930728 WHO'S NEWS HEALTH & REHABILITATION PROPERTIES TRUST HEALTH & REHABILITATION PROPERTIES TRUST NEWTON MASS DAVID J HEGARTY 36 YEARS OLD WAS NAMED TO THE NEW POSTS OF EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE WAS PREVIOUSLY TREASURER OF THIS HEALTHCARE RELATED REALESTATE INVESTMENT TRUST 9307280145 930728 LETTERS TO THE EDITOR PLEXIGLAS SEX ORGANS WOULD MAKE EROS BLUSH IN HER JULY 12 LETTER TO THE EDITOR IN REACTION TO THE JUNE 21 EDITORIAL PAGE ARTICLE SEX PREP NOT SEX ED ELIZABETH WALTERS EXPLAINS THE APPEARANCE OF A PLEXIGLAS PENIS A PLASTIC FEMALE PELVIC MODEL CONDOMS SPONGES STICKY FINGERS GIGGLES AND RED FACES IN A WEST WINDSORPLAINSBORO NJ HIGH SCHOOL SEXUALITY CLASS SHE SAYS THESE ARE THE PROPS IN A VITAL EXERCISE IN DESENSITIZATION TO THE EXPERT MS WALTERS THIS SOUNDS LIKE LEARNING TO ME AND A LOT OF OTHER PARENTS THIS SOUNDS LIKE NONSENSE OUR CHILDREN DO NOT NEED TO BE DESENSITIZED TO EROS AND THE EXPERIENCE OF ROMANTIC LOVE A LIFETIME'S EXPOSURE TO AN OPPRESSIVELY DESENSITIZING MASS CULTURE HAS LEFT OUR CHILDREN QUITE HARDENED THE BRUTISH NATURE OF OUR CHILDREN'S SEXUAL ENCOUNTERS HAS BEEN MAKING HEADLINES AND SCARING PARENTS FOR SOME TIME WHO CAN READ OF THE GLEN RIDGE RAPE CASE THE INFAMOUS SPUR POSSE THE REMARKABLE SCOPE OF SEXUAL HARASSMENT IN THE PUBLIC SCHOOLS AND NOT CONCLUDE THAT OUR CHILDREN NEED TO BE TAUGHT AGAIN ABOUT LOVE RESPECT HONOR AND YES EVEN CHASTITY THE FRACAS IN WEST WINDSORPLAINSBORO HAS ROOTS IN THE SAME SOIL AS THE UPROAR OVER NEW YORK CITY'S CHILDREN OF THE RAINBOW CURRICULUM PARENTS HAVE LITTLE INFLUENCE OVER WHAT IS TAUGHT IN THE GOVERNMENT'S SCHOOLS TO EXERCISE THIS SMALL INFLUENCE THEY MUST RAISE A MAJOR FUSS ONLY WHEN THE GOVERNMENT'S SCHOOLS ARE FORCED TO COMPETE EQUALLY WITH NONGOVERNMENT SCHOOLS WILL THE GOVERNMENT'S SCHOOLS RESPOND READILY TO THE REQUIREMENTS OF PARENTS IS IT POSSIBLE THAT THE UNCOMFORTABLE FEELINGS THE STUDENTS HAVE WHILE BEING DESENSITIZED ARE DUE TO A FEELING OF SHAME FOR THOSE WHO HAVE FORGOTTEN APPARENTLY TOO MANY OF US HAVE SHAME IS SOMETHING THAT BRINGS STRONG REGRET CENSURE OR REPROACH THESE STUDENTS' GIGGLES AND RED FACES SHOW THEIR SHAME MS WALTERS WHAT IS HITOPS DESENSITIZING THESE YOUNG MINDS TO SHAME PERHAPS SHAME IS GOOD IT MAKES PEOPLE THINK TWICE BEFORE MAKING A DECISION THAT MAY PUT THEM IN PERIL TO THOSE WHO BRUSH THIS ASSERTION ASIDE I POSE THIS QUESTION IF YOU WERE TO GET ON A PLANE THAT YOU KNEW WOULD CRASH AND KNEW THE SURVIVAL RATE WOULD BE 80 WOULD YOU GET ON THE PLANE CONDOMS DON'T PREVENT THE PASSAGE OF AIDS AND AIDS KILLS IT'S YOUR CHOICE HAVE NO SHAME GET ON THE PLANE BUT DON'T BRING MY KIDS ALONG FOR THE RIDE 9307280144 930707 LETTERS TO THE EDITOR PAP SMEAR COST GAP THE MAXIMUM MEDICARE WILL REIMBURSE FOR A PAP SMEAR IN IOWA IS 789 THE CURRENT PRICE LIST FOR THE ARMED FORCES INSTITUTE OF PATHOLOGY A RESPECTED AGENCY OF THE US GOVERNMENT QUOTES A FEE OF 40 FOR THIS TEST AS THE CLINTONS TRANSFORM A NOBLE PROFESSION INTO A COMMODITY PERHAPS THE BID AND ASK WILL NARROW SEE RELATED LETTER LETTERS TO THE EDITOR WHY FEES ARE HIGHER FOR FEDERAL PAP TESTS WSJ JULY 28 1993 9307070007 YY93 MM07 9307280143 930728 ENQUIRING MINDS WANT TO KNOW WHY THEY DO ALL THE WEIRD STUFF BY JACK REJTMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO THE NATIONAL ENQUIRER'S MEDICAL COVERAGE CASUAL READERS OF THE SUPERMARKET TABLOID MAY THINK OF STORIES LIKE DELTA OFFERS OWN KIDNEY TO SAVE HER GRANDMA'S LIFE OR JULIA ROBERTS RACED TO HOSPITAL IN LIFE OR DEATH DRAMA BUT WHEN THE AMERICAN CANCER SOCIETY BESTOWED ITS SPECIAL ACHIEVEMENT AWARD FOR EXCELLENCE IN REPORTING HEALTH ISSUES IT GAVE THE PRIZE THIS YEAR TO THE NATIONAL ENQUIRER IT IS THE SECOND TIME SINCE 1988 THAT THE SOCIETY HAS RECOGNIZED THE TABLOID'S CANCER COVERAGE INDEED AS THE PAPER IS PROUD TO POINT OUT THE MORE FAITHFUL AMONG ITS 20 MILLION READERS WILL KNOW THAT BESIDES ITS SCOOPS ON THE ALLEGED GENNIFER FLOWERSBILL CLINTON AFFAIR AND THE 80000 PAID FOR PHOTOS OF GARY HART AND DONNA RICE ON BOARD THE YACHT MONKEY BUSINESS THE ENQUIRER HAS PUBLISHED 538 STORIES RELATING TO CANCER DURING THE PAST FIVE YEARS ON REPORTING IN 1991 THAT VASECTOMIES CAN INCREASE THE CHANCE OF PROSTATE CANCER AND IN 1986 THAT RETINOIC ACID CAN REDUCE WRINKLES AND PRECANCEROUS SKIN LESIONS THE ENQUIRER SAYS IT WAS TWO YEARS AHEAD OF THE PACK THE TABLOID SAYS ITS EIGHTPART SERIES IN 1972 WHICH DETAILED HOW THE BCG VACCINE COULD COMBAT BLADDER CANCER WAS WELL AHEAD OF SOME OTHER MAINSTREAM MEDIA THAT WAITED UNTIL THE US GOVERNMENT APPROVED THE DRUG IN 1990 TO COVER THE STORY IN DEPTH IAIN CALDER PRESIDENT AND EDITOR OF THE ENQUIRER SAYS THAT FOR MORE THAN A DECADE THE TABLOID HAS WORKED HAND IN GLOVE WITH THE CANCER SOCIETY THE ARTHRITIS FOUNDATION AND THE AMERICAN HEART ASSOCIATION TO TALK DIRECTLY TO RESEARCHERS AND TO PROMOTE EXPLOSIVE MEDICAL INFORMATION FOR THE AMERICAN PUBLIC BY THE STANDARDS OF MOST JOURNALISTIC PUBLICATIONS HOWEVER THE ENQUIRER HAS WORKED A LITTLE TOO HAND IN GLOVE WITH THE MEDICAL GROUPS STORIES ON ARTHRITIS CANCER AND HEART DISEASE WERE ALL SHOWN TO SOURCES FOR APPROVAL PRIOR TO PUBLICATION MR CALDER SAYS THE ENQUIRER AGREED TO PRIOR REVIEW TO IMPROVE ITS ACCURACY AND TO OBTAIN BETTER SOURCES BEFORE THIS ARRANGEMENT NONE OF OUR SCIENTISTS WOULD TALK TO THE ENQUIRER FOR FEAR OF BEING MISQUOTED OR A GENERAL FEAR OF WHAT WOULD BE WRITTEN ADDS A CANCERSOCIETY SPOKESWOMAN I WON'T VOUCH FOR STORIES ABOUT EXTRATERRESTRIALS THE CANCERSOCIETY SPOKESWOMAN SAYS BUT IN GENERAL IF IT'S A CANCER STORY THEN IT'S TRUE 9307280142 930708 REVIEW & OUTLOOK EDITORIAL GENERAL DINGELL WE HATE TO SAY IT BUT SOMEONE INNOCENTLY READING THESE COLUMNS TODAY WILL BE HEADED FOR JAIL IN A YEAR OR TWO FOR AN ENVIRONMENTAL CRIME THAT HE HAD NO IDEA HE WAS COMMITTING GOODBYE AND GOOD LUCK WE CAN SAY THIS WITH CONFIDENCE NOW BECAUSE OF THE ALARMING BEHAVIOR AT JANET RENO'S JUSTICE DEPARTMENT OR MAKE THAT JOHN DINGELL'S DEPARTMENT MS RENO IS OF COURSE THE LATEST BELTWAY MEDIA SWEETHEART THE SUBJECT OF A FLATTERING TIME MAGAZINE COVER STORY BUT SHE HAS JUST CEDED A PORTION OF HER AUTHORITY TO MR DINGELL THE CONGRESSIONAL BARON WHO WANTS TO CONDUCT A PURGE OF THE LAWYERS WORKING IN JUSTICE'S ENVIRONMENTAL CRIMES SECTION THE RESULT WILL BE A WAVE OF NEW ENVIRONMENTAL PROSECUTIONS ACROSS THE COUNTRY REGARDLESS OF MERIT SPECIFICALLY MS RENO HAS AGREED TO THE HIGHLY UNUSUAL STEP OF LETTING MR DINGELL'S STAFF INTERROGATORS INTERVIEW CAREER ATTORNEYS AT JUSTICE ABOUT THEIR CASES THESE TORQUEMADASINTRAINING ARE SUPPOSED TO INVESTIGATE IF JUSTICE HAS SOMEHOW GONE TOO EASY ON CORPORATE POLLUTERS AS SOME REPORTERS DELICATELY PUT IT THE BUSH ADMINISTRATION PROPERLY REJECTED THAT REQUEST BUT NOW MS RENO HAS CAVED WITH BARELY A NOTICE IN THE RENOADORING PRESS YET THIS IS SERIOUS STUFF THE BARRBUSH AND EARLIER REAGAN REFUSAL WASN'T A PARTISAN MATTER BUT WAS ROOTED IN THE CONSTITUTION'S SEPARATION OF POWERS THE FOUNDERS DELIBERATELY SPLIT THE POWER TO PROSECUTE FROM THE POWER TO LEGISLATE BECAUSE THEY UNDERSTOOD THE POTENTIAL FOR WHAT THEY LIKED TO CALL TYRANNY MS RENO IS SUPPOSED TO PROTECT WHAT IS THE EXECUTIVE'S AUTHORITY TO PROSECUTE BUT SHE APPARENTLY THINKS IT'S MORE IMPORTANT TO APPEASE A DEMOCRATIC BOSS ON CAPITOL HILL IN MORE PRACTICAL TERMS MR DINGELL IS ASSAULTING THE CONCEPT OF PROSECUTORIAL DISCRETION AS EVERY DISTRICT OR US ATTORNEY KNOWS JUST ABOUT ANYONE CAN BE INDICTED FOR SOME CRIME IF ENOUGH TIME IS DEVOTED TO A CASE IN REALITY PROSECUTIONS ARE LIMITED TO THE MOST WORTHY CASES BY THE JUDGMENT AND RESOURCES OF PROSECUTORS ESPECIALLY SENIOR PROSECUTORS BUT NOW MR DINGELL WANTS TO THROW HIMSELF AND HIS STAFF INTO THESE MOST INTIMATE OF PROSECUTORIAL JUDGMENTS FOR EXAMPLE MR DINGELL HAS ASSAILED JUSTICE AND THE US ATTORNEY IN HOUSTON FOR NOT INDICTING MARINUS VAN LEUZEN OF GALVESTON TEXAS HIS CRIME MR VAN LEUZEN FILLED A QUARTERACRE OF WETLAND UNDER HIS HOUSE SO HE COULD PARK HIS CAR AND SET OUT LAWN FURNITURE CHILDREN ARE BEING SHOT IN SWIMMING POOLS IN WASHINGTON DC BUT SHERIFF DINGELL IS HOT ON THE CASE OF THE MAN WHO BUILT A DRIVEWAY IT'S ESPECIALLY REPREHENSIBLE THAT MS RENO SEEMS HAPPY TO THROW CAREER PROSECUTORS TO THE DINGELL WOLVES IF HIS PAST PRACTICE HOLDS MR DINGELL WILL INVITE THESE ATTORNEYS AN OFFER THEY CAN'T REFUSE TO TESTIFY UNDER OATH BEFORE HIM THEIR APPEARANCE TO COINCIDE WITH A PRIME TIME LIVE OR 60 MINUTES PROGRAM ORCHESTRATED BY HIS PRESS AGENT HE WILL GIVE THEM A TONGUELASHING HINTING DARKLY AT PERJURY IF THEIR MEMORIES AREN'T PERFECT THE DINGELL THREATS HAVE ALREADY CAUSED SOME LAWYERS IN THE ENVIRONMENTAL SECTION TO HIRE THEIR OWN LAWYERS FOR SELFPROTECTION AND OF COURSE OTHER PROSECUTORS GET THE MESSAGE THAT IF THEY EVER DECLINE TO INDICT A MARGINAL CASE THEY COULD SUFFER THE SAME FATE ONE GREAT IRONY HERE IS THAT MR DINGELL'S MAJOR TARGET APPEARS TO BE NEIL CARTUSCIELLO THE HEAD OF THE ENVIRONMENT SECTION MR CARTUSCIELLO IS ONE OF THOSE WHO PIONEERED USE OF THE RICO STATUTES IN FINANCIAL CASES DURING THE 1980S NOTABLY THE PRINCETONNEWPORT CASE WHATEVER ELSE MAY BE SAID ABOUT HIM MR CARTUSCIELLO CAN HARDLY BE ACCUSED OF WANTING TO GO SOFT ON WHITE COLLARS THE DINGELL ACCUSATIONS ALMOST CERTAINLY REFLECT THE VIEWS OF BUREAUCRATS ESPECIALLY FROM THE ENVIRONMENTAL PROTECTION AGENCY WHO LOST THEIR DEBATES INSIDE THE EXECUTIVE BRANCH AND SOUGHT OUT THE DINGELL STAFF TO HELP GET REVENGE TO BE FAIR THEY MAY ALSO REFLECT A MORE GENERAL POLITICAL AGENDA TO MAKE ENVIRONMENTAL CRIME A HIGHER PRIORITY AT JUSTICE VICE PRESIDENT AL GORE FLOGGED THIS ISSUE IN THE LAST ELECTION AND MS RENO HAS DECLARED IT ONE OF HER PRIORITIES IT'S THE POLITICALLY CORRECT CRIME OF THE 1990S OUR OWN VIEW IS THAT THE COUNTRY DID JUST FINE WITHOUT THIS LEGAL SPECIALTY FOR 200 YEARS IT WAS STARTED IN THE EARLY 1980S AND THAT IT'S PROBABLY ON A COLLISION COURSE WITH CONSTITUTIONAL PROPERTY RIGHTS BUT IN THE MEANTIME IT'D BE NICE IF OUR LIONIZED ATTORNEY GENERAL STOOD UP FOR PROSECUTORIAL SANITY AGAINST THE POLITICAL INTRUSIONS OF BIG JOHN DINGELL SEE RELATED LETTER LETTERS TO THE EDITOR DUTY TO PROSECUTE ENVIRONMENTAL CRIME WSJ JULY 28 1993 9307080067 YY93 MM07 9307280141 930728 LETTERS TO THE EDITOR COKE FOREVER REAL IN HIS MAY 21 REVIEW OF FOR GOD COUNTRY AND COCACOLA ENTITLED THE REAL STORY OF THE REAL THING' MICHAEL J MCCARTHY DESCRIBES HOW COKE WAS CHRISTENED THE REAL THING IN THE 1960S ACTUALLY AS ANY DEDICATED COLLECTOR OF OLD NATIONAL GEOGRAPHIC MAGAZINES COULD HAVE TOLD HIM COKE WAS ADVERTISED AS THE REAL THING AS EARLY AS APRIL 1942 9307280140 930728 EDS GETS CONTRACT FROM BAXTER DALLAS ELECTRONIC DATA SYSTEMS CORP A UNIT OF GENERAL MOTORS CORP SAID IT SIGNED AN EIGHTYEAR CONTRACT WITH BAXTER DIAGNOSTICS INC TO DEVELOP A COMPUTERIZED ONLINE INFORMATION NETWORK LINKING CLINICAL LABORATORIES WITH DOCTORS' OFFICES BAXTER DIAGNOSTICS A UNIT OF BAXTER INTERNATIONAL INC ESTIMATED THE CONTRACT COULD BE WORTH 250 MILLION TO EDS 9307280139 930728 MESA AIRLINES TRAFFIC UP FARMINGTON NM MESA AIRLINES SAID ITS TRAFFIC INCREASED 17 IN ITS FISCAL THIRD QUARTER ENDED JUNE 30 TO 2369 MILLION REVENUE PASSENGER MILES FROM LAST YEAR'S 2022 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 498 FROM LAST YEAR'S 49 9307280138 930728 BURLINGTON COAT SALES RISE BURLINGTON NJ BURLINGTON COAT FACTORY WAREHOUSE CORP SAID SALES ROSE 25 IN THE FISCAL FOURTH QUARTER ENDED JULY 3 TO 2509 MILLION WHILE SAMESTORE SALES ROSE 88 FOR THE YEAR SALES ROSE 20 TO 12 BILLION INCLUDING A 12 SAMESTORE SALES GAIN THE LATEST FISCAL YEAR WAS ONE WEEK LONGER THAN THE PREVIOUS YEAR THE DISCOUNT CLOTHING RETAILER NOTED 9307280137 930728 WHO'S NEWS STARTER CORP STARTER CORP NEW HAVEN CONN JOSEPH P GRANT 60 YEARS OLD AND BENJAMIN E COHEN 65 WERE ELECTED DIRECTORS OF THIS SPORTSWEAR MAKER INCREASING THE BOARD'S SIZE TO FOUR MR GRANT IS PRESIDENT OF TIME WARNER SPORTS MERCHANDISING MR COHEN IS A PARTNER IN THE ACCOUNTING FIRM OF BLUM SHAPIRO & CO 9307280136 930728 WHO'S NEWS GRAND METROPOLITAN PLC GRAND METROPOLITAN PLC LONDON LARRY G WHEELER 47 YEARS OLD WAS NAMED PRESIDENT OF THIS COMPANY'S ALPO PETFOODS UNIT MR WHEELER HAS BEEN HEAD OF THE PIZZA BUSINESS AT THE PILLSBURY UNIT OF GRAND METROPOLITAN A RETAILING AND FOOD CONCERN MR WHEELER SUCCEEDS KEVIN T MARTIN 38 WHO RESIGNED TO BECOME CHIEF EXECUTIVE OFFICER OF BRACH CORP IN OAKBROOK TERRACE ILL 9307280135 930728 RULE OF LAW LOST YOUR JOB SUE AND MAKE A MILLION BY THEODORE J BOUTROUS JR STOP US BEFORE WE KILL AGAIN THAT IS THE UNMISTAKABLE MESSAGE OF THE CALIFORNIA COURT OF APPEAL IN A WRONGFUL TERMINATION SUIT IT HEARD THIS SPRING IN APRIL THE COURT UPHELD A 51 MILLION DAMAGE AWARD TO THE FORMER VICE PRESIDENT OF A CONSTRUCTION FIRM WHO CLAIMED HE HAD BEEN UNFAIRLY PUSHED OUT OF HIS JOB THE AWARD INCLUDES 2 MILLION FOR EMOTIONAL DISTRESS AND 1 MILLION IN PUNITIVE DAMAGES IN UPHOLDING THE VERDICT THE COURT LAMENTED THAT THIS AREA OF THE LAW IS QUICKLY RUNNING OUT OF CONTROL AND THE CITIZENS OF CALIFORNIA WILL BE THE ULTIMATE VICTIMS AND LOSERS BECAUSE BUSINESS ENTERPRISES WILL FLEE THE STATE IN A SEPARATE OPINION A CONCURRING JUDGE DECLARED THAT WE SEEM TO BE ON THE VERGE OF GUARANTEEING THE RIGHT TO A 'NICE AND EASY' CAREER I DON'T SEE HOW A COMPANY CAN OPERATE WHEN IT MUST CATER TO THOSE OF SUCH TENDER SENSIBILITIES IF THE COURT IN HUNIO V TISHMAN CONSTRUCTION CO THOUGHT THE SUIT WAS WRONG THEN WHY DID IT LET THE HUGE AWARD STAND THE COURT'S UNSATISFACTORY ANSWER IS THAT IT HAD NO CHOICE BUT TO AFFIRM THE VERDICT BECAUSE IT COMPLIED WITH GOVERNING LEGAL STANDARDS THAT REQUIRE ALMOST COMPLETE DEFERENCE TO JURY DECISIONS NO MATTER HOW OUTRAGEOUS OR ABSURD CHANGING THOSE STANDARDS WAS A MATTER FOR THE CALIFORNIA LEGISLATURE IT SAID IT IS NOT OUR OBLIGATION TO MAKE THE LAWS IT SAID BUT IT IS OUR RESPONSIBILITY TO POINT OUT WHERE LAWS ARE NEEDED JUDICIAL RESTRAINT IS AN ADMIRABLE GENERAL PRINCIPLE BUT IN THIS CONTEXT IT IS PECULIAR FOR IT WAS THE COURTS NOT THE LEGISLATURE THAT CREATED THE WRONGFUL TERMINATION EMOTIONAL DISTRESS AND PUNITIVE DAMAGE THEORIES THAT MR HUNIO EXPLOITED HAVING REALIZED THE DESTRUCTIVE QUALITIES OF THE QUAGMIRE IT CREATED THE JUDICIARY SHOULD NOW WORK TO CLEAN UP ITS OWN MESS IN THE NATIONAL DEBATE ABOUT CIVIL JUSTICE REFORM ALL TOO OFTEN OVERLOOKED IS THE CRUCIAL ROLE FOR THE COURTSAND THE RESPONSIBILITY JUDGES SHARE WITH THE LAWMAKERS FOR THE CURRENT CHAOS THE TISHMAN CASE IS A CLASSIC EXAMPLE MR HUNIO A 104000AYEAR CONSTRUCTION MANAGER WALKED OUT OF A MAJOR PROJECT BECAUSE HE FOUND A CUSTOMER ABRASIVE AND ABUSIVE MR HUNIO WHO WAS 56 YEARS OLD AT THE TIME CLAIMED THAT WHEN HE RETURNED THE COMPANY BEGAN TO TREAT HIM BADLY GIVING HIM MINOR PROJECTS SENDING HIM MIXED MESSAGES ABOUT HIS FUTURE EMPLOYMENT PROSPECTS AND LEAVING HIM SITTING IN HIS GLASSWALLED OFFICE WORKING ONLY 20 TO 25 OF THE TIME WHILE YOUNGER EMPLOYEES RECEIVED CHOICE ASSIGNMENTS HE WAS SUBJECTED TO THE FURTHER INDIGNITY OF BEING DENIED A RAISE AND A CHRISTMAS BONUS MR HUNIO'S RESPONSE TO THIS TREATMENT WAS TO CHECK HIMSELF INTO A PSYCHIATRIC HOSPITAL QUIT HIS JOB AND FILE A LAWSUIT BEFORE LONG HE STRUCK IT RICH AS ONE JUDGE PUT IT THE EMPLOYER CREATED AN INTOLERABLE' SITUATION FOR HUNIO BY GIVING HIM SMALL RAISES AND BONUSES MANY EMPLOYEES SHOULD BE SO LUCKY ONLY IN WONDERLAND COULD SUCH BE CONSIDERED THE CREATION OF AN INTOLERABLE WORK SITUATION BUT THERE IS NO NEED TO WAIT FOR THE LEGISLATURE TO PASS A LAW CHANGING THE RULES THERE IS AMPLE AUTHORITY FOR THE COURTS TO STEP IN PARTICULARLY WHEN THE PROBLEMS ARE A PRODUCT OF JUDGEMADE LAW IN THE FIRST PLACE JUST FIVE YEARS AGO THE CALIFORNIA SUPREME COURT SOUGHT TO TIGHTEN THE LIMITS ON EXTRACONTRACTUAL DAMAGES EMOTIONAL DISTRESS PUNITIVE IN WRONGFULTERMINATION CASES HOLDING THAT THE AVAILABILITY OF SUCH DAMAGES IN THE EMPLOYMENT CONTEXT HAS POTENTIALLY ENORMOUS CONSEQUENCES FOR THE STABILITY OF THE BUSINESS COMMUNITY IN 1991 THE SUPREME COURT OF THE UNITED STATES MADE CLEAR THAT STATE COURTS HAVE A SPECIAL CONSTITUTIONAL OBLIGATION TO SUPERVISE CAREFULLY THE IMPOSITION OF PUNITIVE DAMAGES JUST A FEW WEEKS AGO THE SUPREME COURT REITERATED THE CONSTITUTION'S BAN ON UNCONTROLLED JURIES AND UNREASONABLE VERDICTS ALTHOUGH THE COURT DECLINED TO OVERTURN A PARTICULAR PUNITIVE DAMAGE AWARD IN THAT CASE BOTH THE CONCURRING AND THE DISSENTING OPINIONS AGREED ON THESE POINTS JUSTICE SANDRA DAY O'CONNOR'S DISSENTING OPINION DECLARED THAT MANY COURTS CONTINUE TO PROVIDE JURORS WITH SKELETAL GUIDANCE THAT PERMITS THE TRADITIONAL GUARANTOR OF FAIRNESS THE JURY ITSELF TO BE CONVERTED INTO A SOURCE OF CAPRICE AND BIAS IN A CONCURRING OPINION JUSTICE ANTHONY KENNEDY SAID WHEN A PUNITIVE DAMAGES AWARD REFLECTS BIAS PASSION OR PREJUDICE ON THE PART OF THE JURY THE CONSTITUTION HAS BEEN VIOLATED MASSIVE DAMAGE AWARDS ARE FLOURISHING ONE STUDY SHOWS THAT THE AVERAGE WRONGFULTERMINATION JURY AWARD IN CALIFORNIA IS 13 MILLION AN AMOUNT THAT HAS NEARLY TRIPLED IN THE PAST FIVE YEARS IN THAT PERIOD THERE HAVE BEEN AT LEAST THREE WRONGFULTERMINATION CASES INVOLVING JURY AWARDS EXCEEDING 15 MILLION INCLUDING ONE CASE THAT PRODUCED A 45 MILLION VERDICT OTHER STATES HAVE EXPERIENCED A SIMILAR EXPLOSION IN AWARDS TO EMPLOYEES A TEXAS JURY LAST YEAR RETURNED A 124 MILLION VERDICT AGAINST TRITON ENERGY CORP ALMOST HALF THE COMPANY'S ANNUAL REVENUE THE PREVIOUS YEAR FOR FIRING AN EMPLOYEE WHO EARNED 93000 A DALLAS JURY IN APRIL AWARDED AN EMPLOYEE ACCUSED OF STEALING A TELEPHONE FROM HIS EMPLOYER PROCTOR & GAMBLE 155 MILLION IN 1989 A FLORIDA JURY ASSESSED A 25 MILLION PUNITIVE DAMAGE AWARD IN A LIBEL AND SLANDER CASE BROUGHT BY AN EMPLOYEE AGAINST HIS FORMER EMPLOYER AND LAST YEAR A PALM BEACH DOCTOR COLLECTED 152 MILLION IN A WRONGFULTERMINATION SUIT AGAINST A HOSPITAL THESE HUGE FIGURES ARE HAVING A CHILLING EFFECT ON THE ECONOMY THE RAND INSTITUTE OF CIVIL JUSTICE CONCLUDES THAT IN CALIFORNIA THE EXPANSIVE WRONGFULTERMINATION RULES MAY HAVE CAUSED EMPLOYMENT LEVELS TO FALL BY AS MUCH AS 4 TO 5 THE CALIFORNIA COMPETITIVENESS COUNCIL REPORTED TO GOVERNOR PETE WILSON LAST YEAR THAT EXCESSIVE OFTEN UNMERITORIOUS AND ALWAYS COSTLY LITIGATION IS AN ACUTE AND WIDELY HELD CONCERN ABOUT THE CALIFORNIA BUSINESS AND JOBS CLIMATE CALIFORNIA IN THE THROES OF A DEEP RECESSION AND SUFFERING RECORD JOB LOSSES CAN HARDLY AFFORD TO WAIT FOR A LEGISLATIVE SOLUTION WHICH COULD TAKE YEARS THE STATE SUPREME COURT WHICH HAS GRANTED REVIEW IN THE TISHMAN CASE HAS THE OPPORTUNITY TO FIX THE SYSTEM NOW THE COURTS INVENTED THE LEGAL RULES THAT ARE WREAKING HAVOC WITH THE BUSINESS COMMUNITY AND IT IS FROM THE COURTS THAT WE MUST EXPECT A REFORM MR BOUTROUS IS AN ATTORNEY IN WASHINGTON 9307280134 930728 CAREMARK INTERNATIONAL BUYBACK NORTHBROOK ILL CAREMARK INTERNATIONAL INC SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 15 MILLION SHARES OF ITS COMMON FROM TIME TO TIME ON THE OPEN MARKET THE COMPANY WHICH HAS ABOUT 715 MILLION SHARES OUTSTANDING SAID THE PURCHASES WILL BE MADE BY JULY 31 1994 CAREMARK WHICH PROVIDES ALTERNATE SITE HEALTHCARE SERVICES SAID THE SHARES WILL BE HELD IN ITS TREASURY AND MAY BE REISSUED FOR USE IN THE COMPANY'S STOCKBASED COMPENSATION PROGRAMS OR FOR ACQUISITIONS 9307280133 930728 WHO'S NEWS OWENS & MINOR INC OWENS & MINOR INC RICHMOND VA VERNARD W HENLEY 63 YEARS OLD WAS ELECTED A DIRECTOR OF THIS WHOLESALE DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES PHARMACEUTICALS AND RELATED PRODUCTS INCREASING THE BOARD TO 12 MR HENLEY IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CONSOLIDATED BANK & TRUST CO RICHMOND 9307280132 930728 WHO'S NEWS KINDERCARE LEARNING CENTERS INC KINDERCARE LEARNING CENTERS INC MONTGOMERY ALA PHILIP L MASLOWE 46 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS CHILD CARE COMPANY MR MASLOWE FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THRIFTY CORP TAKES OVER DUTIES PREVIOUSLY HELD BY TULL GEARREALD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF KINDERCARE 9307280131 930728 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK JOHN M GRIFFIN 47 YEARS OLD WAS NAMED PRESIDENT OF LANDMARK INSURANCE CO A UNIT OF THIS INTERNATIONAL INSURANCE CONCERN MR GRIFFIN WHO HAD BEEN SENIOR VICE PRESIDENT OF XEROX CORP'S CRUM & FORSTER INC UNIT SUCCEEDS KEVIN H KELLY WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OF LANDMARK 9307280130 930728 WHO'S NEWS CHASE REVAMPS CORPORATE BANK MURPHY IS HEAD BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHASE MANHATTAN CORP REORGANIZED ITS CORPORATE BANK AS PART OF AN EFFORT TO INTEGRATE ITS BUSINESSES AND EXPAND ITS CAPITAL MARKETS ACTIVITIES ROBERT MURPHY 51 YEARS OLD AN EXECUTIVE VICE PRESIDENT IN CHARGE OF LATIN AMERICA WILL OVERSEE GLOBAL CORPORATE FINANCE THE NEW POSITION WILL OVERSEE ALL OF THE BANKING COMPANY'S TRADITIONAL LENDING ACTIVITIES AS WELL AS THE BANK'S EQUITY INVESTMENTS AND ITS MERGERS AND ACQUISITIONS ACTIVITIES MR MURPHY WAS ONE OF FOUR EXECUTIVES WHO PREVIOUSLY MANAGED CORPORATE FINANCE ACTIVITIES THE OTHER THREE WILL CONTINUE TO MAINTAIN CORPORATEFINANCE RELATIONSHIPS WITH CLIENTS ALSO KATHYLYNN GALBRAITH FORMERLY HEAD OF EMERGING MARKETS WHICH INVOLVES DEVELOPING COUNTRIES NOW WILL OVERSEE WORLDWIDE DEBT AND EQUITY SALES AND TRADING ACTIVITIES ROBERT STRONG 44 FORMERLY IN CHARGE OF REAL ESTATE WILL BECOME HEAD OF A NEWLY FORMED PORTFOLIO MANAGEMENT UNIT THAT WILL MONITOR THE RISKS AND RETURNS OF THE COMPANY'S LOAN PORTFOLIO THOMAS LABRECQUE CHAIRMAN AND CHIEF EXECUTIVE SAID THE CHANGE ISN'T A NEW STRATEGY BUT RATHER REFINING WHAT WORKS BEST THE MOVE IS PART OF THE BANK'S PUSH TO ALIGN THE BUSINESSES ON A GLOBAL SCALE PREVIOUSLY BOTH CORPORATE FINANCE AND CAPITAL MARKETS WERE BROKEN DOWN BY GEOGRAPHY THE MOVE FOLLOWS A REORGANIZATION OF CHASE'S RETAIL BANK IN WHICH THE BUSINESSES WERE STRUCTURED ALONG PRODUCT LINES RATHER THAN GEOGRAPHICALLY MS GALBRAITH 37 NOW WILL BE THE HIGHEST RANKING WOMAN EXECUTIVE AT THE BANK AND IS CONSIDERED BY EXECUTIVES TO BE A RISING STAR EXECUTIVES SAY HER TASK WILL BE TO BUILD THE COMPANY'S SECURITIES BUSINESS AT A TIME WHEN MANY OF THE BANK'S CLIENTS ARE TAPPING THE SECURITIES MARKETS RATHER THAN JUST NEEDING LOANS MS GALBRAITH BUILT CHASE'S DEVELOPING COUNTRY LOAN TRADING GROUP INTO A TOPRANKED EMERGING MARKETS SALES AND TRADING OPERATION SHE WILL HAVE RESPONSIBILITIES FOR CHASE SECURITIES INC THE BANK'S DOMESTIC SECURITIES UNDERWRITING SUBSIDIARY AS WELL AS INTERNATIONAL CAPITAL MARKETS ALTHOUGH THE BANK CURRENTLY ISN'T AUTHORIZED TO DO DOMESTIC UNDERWRITING OF EQUITIES IT IS EXPECTED TO SEEK SUCH REGULATORY APPROVAL HER NEW DUTIES WILL EXCLUDE DERIVATIVES AND FOREIGN EXCHANGE PRODUCTS BUT INCLUDE DEBT AND EQUITY SALES AND TRADING BY FOLDING ALL CAPITAL MARKETS AROUND THE WORLD INTO ONE GROUP IT'S A SIGNAL THAT WE'RE GOING TO FURTHER BUILD CAPITAL MARKETS AS A CAPABILITY SAID MR LABRECQUE KATHY HAS DEMONSTRATED THAT SHE CAN DO THIS 9307280129 930728 CHEVRON UNIT PLANS JOB CUTS SAN FRANCISCO CHEVRON CORP'S CHEVRON USA PRODUCTION CO SAID IT WILL CUT ABOUT 140 JOBS AT ITS FINANCE GROUP IN CONCORD CALIF THE MOVE IS PART OF AN ONGOING DOWNSIZING OF CHEVRON USA PRODUCTION CO WHICH HAS DIVESTED ITSELF OF MORE THAN 2500 OIL AND GAS PROPERTIES SINCE 1986 AS THESE ACTIVITIES DECREASED AND WORK PROCESSES CHANGED WE KNEW AND COMMUNICATED TO EMPLOYEES THAT OUR FUNCTION WOULD REQUIRE A SIGNIFICANTLY SMALLER WORK FORCE SAID DAVID STEELE VICE PRESIDENT OF FINANCE THE COMPANY CURRENTLY HAS 642 FINANCE EMPLOYEES IN CONCORD 9307280128 930728 WHO'S NEWS LUBY'S CAFETERIAS INC LUBY'S CAFETERIAS INC SAN ANTONIO JOANNE WINIK 54 YEARS OLD AND WILLIAM E ROBSON 51 WERE NAMED TO THE BOARD OF THIS CAFETERIA CHAIN MS WINIK IS PRESIDENT AND GENERAL MANAGER OF KLRNTV IN SAN ANTONIO AND MR ROBSON IS SENIOR VICE PRESIDENT OPERATIONS FOR LUBY'S THEY INCREASE THE BOARD TO 10 MEMBERS AND TAKE A SEAT VACATED BY MERTON M MINTER JR 60 WHO HAS RESIGNED AFTER SERVING ON THE BOARD FOR 14 YEARS 9307280127 930728 WHO'S NEWS SALICK HEALTH CARE INC SALICK HEALTH CARE INC LOS ANGELES ROBERT PETER GALE 48 YEARS OLD WAS NAMED CORPORATE DIRECTOR OF BONE MARROW AND STEM CELL TRANSPLANTATION PROGRAMS HE ASSUMES THE NEWLY CREATED POSITION SEPT 1 AT THIS PROVIDER OF DIAGNOSTIC AND THERAPEUTIC SERVICES TO PATIENTS WITH COMPLEX CHRONIC ILLNESSES SUCH AS CANCER AND KIDNEY FAILURE 9307280126 930728 STANDARD FEDERAL PLANS PURCHASE TROY MICH STANDARD FEDERAL BANK SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE HERITAGE BANKCORP INC OF TAYLOR MICH FOR 1107 MILLION STANDARD FEDERAL SAID THAT IT EXPECTS TO COMPLETE THE DEAL BY YEAR'S END THE TRANSACTION STILL MUST BE APPROVED BY REGULATORS AND HERITAGE'S SHAREHOLDERS THE PURCHASE PRICE AMOUNTS TO 3325 A SHARE OF HERITAGE BANKCORP COMMON STOCK STANDARD FEDERAL THE NATION'S SIXTH LARGEST THRIFT HAS 98 BILLION WHILE HERITAGE HAS ASSETS OF 9277 MILLION HERITAGE HAS 45 OFFICES IN SOUTHEASTERN MICHIGAN 9307280125 930728 WHO'S NEWS GOVPX GOVPX NEW YORK PETER J CARNEY 56 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING A LAURENCE JONES 40 WHO WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NEODATA SERVICES INC MR CARNEY HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF FUNDAMENTAL BROKERS GOVPX IS A TREASURY PRICING SERVICE FOR INTERDEALER BROKERS AND GOVERNMENT SECURITIES DEALERS 9307280124 930728 LONE STAR LEGEND ONE TYCOON IN TEXAS STILL IS DREAMING BIG EVEN IF IT'S OUT OF STYLE GEORGE MITCHELL CAN FORESEE A CITY OF A MILLION SOULS RISING FROM A FOREST SITE DOTTY DOINGS IN GALVESTON BY CALEB SOLOMON AND ROBERT JOHNSON STAFF REPORTERS OF THE WALL STREET JOURNAL THE WOODLANDS TEXAS GEORGE P MITCHELL BARON OF THE OIL PATCH PLAYING THE ROLE WITH FLAIR PARKS A NEW MINTGREEN CADILLAC IN A VISIONARY CITY THAT ONLY HE SEES FOR SURE ON THIS FORESTED LAND BEHIND THOSE PINE TREES THE NEW 25 BILLION SHOPPING MALL WILL SOAR BEYOND A FIELD WILL BE TRANSFORMED INTO A MANMADE WATERWAY WITH LAUNCHES TO FERRY SHOPPERS AND CONCERTGOERS ON THEIR WAY TO HEAR THE HOUSTON SYMPHONY NOT FAR AWAY SCIENTISTS WILL LABOR IN A BURGEONING RESEARCH CENTER SAYS THE 74YEAROLD TYCOON CAUTION HAS NO PLACE HERE IN WHAT MR MITCHELL PROMISES WILL BE A CITY OF A MILLION PEOPLE STILL IT SEEMS EVERYONE FROM HIS TOP LIEUTENANTS TO HIS 10 CHILDREN QUESTIONS HIM OPENLY MR MITCHELL THE TRIM BALD SON OF A GREEK GOATHERD LISTENS PATIENTLY TO ALL UNMOVED NOBODY UNDERSTANDS HE TELLS A VISITOR GAZING AT THE FOREST THIS IS A LABOR OF LOVE I'M BUILDING FOR A THOUSAND YEARS FROM NOW THE TEXAS ECONOMY MAY BE TEPID MOST OF THE STATE'S ONCEACTIVE FAMILY FORTUNES FROM THE HUNTS TO THE GETTYS TO T BOONE PICKENS MAY BE SILENT BUT TEXAS STILL HAS GEORGE MITCHELL A WOULDBE BUILDER OF LEGACIES AN UNREPENTANT OPTIMIST A THROWBACK TO ANOTHER ERA SINCE DRILLING HIS FIRST BIG WILDCAT WELL ON A CHICAGO BOOKIE'S TIP 45 YEARS AGO MR MITCHELL HAS AMASSED A PERSONAL FORTUNE OF MORE THAN 700 MILLION HE IS THE 158TH RICHEST AMERICAN ON THE FORBES 400 LIST EVEN IN A STATE FAMOUS FOR EXCESS MR MITCHELL TURNS HEADS HE IS CHAIRMAN PRESIDENT AND 60 OWNER OF MITCHELL ENERGY & DEVELOPMENT CORP ONE OF THE NATION'S LARGEST PETROLEUM PRODUCERS BUT HIS OBSESSIONS HAVE BROADENED GRADUALLY FROM PETROLEUM WEALTH UNDERGROUND TO EMPIRES ON THE LAND THE WOODLANDS CARVED FROM FOREST 27 MILES NORTH OF HOUSTON HAS 36000 RESIDENTS TODAY MR MITCHELL ENVISIONS THE SHOPPINGMALL PROJECT AS THE CENTERPIECE OF A COMMUNITY HE PREDICTS WILL REACH THE MILLION MARK BY THE YEAR 2020 HE DRAGGED HIS PUBLIC COMPANY INTO THE WOODLANDS PROJECT 20 YEARS AGO AGAINST THE ADVICE OF BANKERS WHO REFUSED TO LEND 10 MILLION TO START THE PROJECT TODAY AFTER PUMPING 600 MILLION OF MITCHELL ENERGY'S CAPITAL INTO THE WOODLANDS IT IS MODESTLY IN THE BLACK THOUGH ANALYSTS SAY THE BIG PAYOFF IN HIS REALESTATE VENTURES WILL BE A LONG TIME COMING LIKE TEXANS OF YORE MR MITCHELL IS BETTING THAT THE STATE WILL GROW HE IS BETTING NOT JUST ONCE BUT TWICE IF THE WOODLANDS IS MR MITCHELL'S FUTURE GALVESTON IS HIS PAST AND THERE HE PERSONALLY OWNS MUCH OF THE SLEEPY GULF COAST TOWN WHERE HE GREW UP THE SENTIMENTAL TYCOON LONGS TO RESTORE THE LOST GLAMOUR OF THE RESORT ISLAND SOUTH OF HOUSTON WITH 65 MILLION OF HIS OWN MONEY SO FAR HE IS ALMOST SINGLEHANDEDLY REBUILDING GALVESTON'S HISTORIC STRAND SECTION WHERE HE OWNS 17 HOTELS RESTAURANTS AND SHOPS ISLAND RESIDENTS WONDER IF MR MITCHELL ISN'T A BIT DOTTY THOUGH THEY APPRECIATE HIS PATRONAGE HE LISTENS POLITELY TO SUCH CRITICISMS GATHERING REGULARLY WITH A COUPLE OF DOZEN SMALLBUSINESS OWNERS AND CITY OFFICIALS FOR SUNDAY MORNING GABFESTS AT THE BEST WESTERN CALL IT MR MITCHELL'S OPPORTUNITY FOR A REALITY CHECK AT A RECENT GATHERING HE WAS WARNED THAT HIS GALVESTON TOURIST PROPERTIES WEREN'T EARNING A DIME THAT ALMOST NOBODY WAS RIDING THE NOSTALGIC TEXAS LIMITED TRAIN HE HELPED BUILD TO LURE VISITORS FROM NEARBY HOUSTON AND THAT THE ROWDY MARDI GRAS GALA HE FOSTERED WAS SCARING OFF VALUABLE FAMILY TRADE GEORGE EVERY NIGHT I LIGHT A CANDLE FOR YOU AND ALL YOUR MILLIONS SAID JIM YARBROUGH A TRUSTEE ON THE GALVESTON WHARVES BOARD BUT MELLOW IN HIS TROPICALFLOWERED SHIRT MR MITCHELL REPLIED DON'T WORRY ABOUT ME I'M HAVING FUN INDEED MR MITCHELL THROWS GALVESTON'S BIGGEST PARTIES INCLUDING MARDI GRAS FOR WHICH HE HAS HIS FACE PLAYFULLY PAINTED IN TRADITIONAL BLUE CAT WHISKERS THIS YEAR REVELERS GATHERED BENEATH HIS BALCONY TO SERENADE HIM WITH A FITTING BROADWAY TUNE IF I WERE A RICH MAN THAT WAS AFTER MITCHELL EMPLOYEES DRESSED AS ARAB SHEIKS SHOWERED MERRYMAKERS WITH PETRODOLLARS CARRYING HIS PICTURE MR MITCHELL'S FORTUNES SUFFERED WHEN ENERGY PRICES WENT SOUTH IN THE MID1980S BUT HE HAD AVOIDED THE EXCESSES OF THE OIL BOOM THAT SENT THOUSANDS OF COMPETITORS INTO BANKRUPTCY NOW PROFITS ALLOW HIM TO KEEP POURING MONEY INTO AND USUALLY WRINGING PROFITS OUT OF CHANCY OIL AND GAS DEALS THAT HELP FINANCE HIS EVEN IFFIER REALESTATE SCHEMES THE FUTURE IS ALWAYS BRIGHT AROUND MR MITCHELL HE HAS A BACKLOG OF 1126 WELL SITES READY TO DRILL IF ENERGY PRICES RISE MITCHELL ENERGY'S HOLDINGS INCLUDE MORE THAN 50000 RESIDENTIAL LOTS MOSTLY AT THE WOODLANDS LET OTHERS WORRY ABOUT A REALESTATE BUST THAT HAS DROPPED HOME PRICES BY 30 AND EMPTIED HALF OF THE HOUSTON AREA'S COMMERCIAL SPACE YOU REALLY NEED A 30YEAR SUPPLY OF LOTS TO BE PREPARED FOR THE POPULATION GROWTH AROUND HERE MR MITCHELL SAYS EARNESTLY MR MITCHELL IS PRESSING AHEAD TO CREATE HIS MODEL CITY AT THE WOODLANDS INCLUDING A RESEARCH CENTER BANKROLLED LARGELY OUT OF HIS OWN POCKET HE IS HELPING TO SUPPORT 150 SCIENTISTS DEVELOPING EVERYTHING FROM IMPROVED PARTS FOR ATOMSMASHERS TO BIGGERTHANEVER BLUEBONNET WILDFLOWERS HE IS PERSONALLY DIRECTING THE PLANTING OF WILDFLOWERS ALONG THE DEVELOPMENT'S 55 MILES OF BIKING AND HIKING PATHS THEN THERE ARE THE WATER TAXIS FOR THOSE TO HAPPEN THE WOODLANDS BOASTS A 500ACRE MANMADE LAKE THAT SOON IS TO CONNECT WITH A VENETIANSTYLE WATERWAY WINDING TO YET ANOTHER NEW LAKE THIS FERVENT DREAM OF A COMMERCIAL CENTER IN THE MIDDLE OF NOWHERE HAS PERSUADED SEARS ROEBUCK & CO AMONG OTHER MAJOR RETAILERS TO BUILD NEW STORES IN THE COMPLEX NEVER MIND THAT SEARS IS CLOSING 113 EXISTING STORES ELSEWHERE WE'RE EXCITED A SEARS OFFICIAL SAYS THIS IS A VISION OVER THE YEARS MR MITCHELL'S ENTHUSIASM AND INITIATIVE HAVE HELPED WANGLE 59 MILLION IN FEDERALLOAN GUARANTEES PLUS GRANTS FOR THE WOODLANDS EVEN DOWN TO FINANCING AN EXPERIMENTAL SURFACE ON ITS JOGGING TRACK BUT HE ALSO PLUNKED DOWN 12 MILLION IN PERSONAL FUNDS SEVERAL YEARS AGO TO BUILD THE CYNTHIA WOODS MITCHELL PAVILION NAMED FOR HIS WIFE AND PAID 5 MILLION TO LURE THE HOUSTON SYMPHONY WHEN SOME MUSICIANS BALKED AT THE OPPRESSIVE HEAT HE INSTALLED AIR CONDITIONING ON THE OUTDOOR STAGE WALL STREET WOULD LIKE HIM TO SPIN OFF THE REALESTATE ARM OF MITCHELL ENERGY FIGURING THE PETROLEUM SEGMENT'S STOCK WOULD SOAR IF IT WERE ALONE SAYS THOMAS LEWIS A SECURITIES ANALYST AT DUFF & PHELPS/MCM INVESTMENT RESEARCH CO HIS WHOLE REALESTATE VENTURE HAS BEEN A DRAG ON EARNINGS HE'S LIKE A SHADETREE MECHANIC WHO SPENDS TOO MUCH TIME ON HIS HOT ROD AND IGNORES THE FAMILY STATION WAGON BUT MR MITCHELL NOTES THAT THE COMPANY'S SHARES ARE DOING WELL TRADING ON THE NEW YORK STOCK EXCHANGE AT 25 UP FROM 1425 LAST JANUARY TO BE SURE ALTHOUGH HIS GALVESTON HOTELS PRODUCE LOSSES HE WON'T DISCLOSE THE AMOUNTS THEY ARE HIS PRIVATE ENDEAVORS THE PUBLICLY TRADED COMPANY'S REALESTATE ENTERPRISES CONSISTING OF THE WOODLANDS AND TWO LUXURY SUBDIVISIONS IN GALVESTON EARNED PRETAX PROFIT OF 228 MILLION OR 17 OF THE COMPANY'S TOTAL IN THE FISCAL YEAR ENDED JAN 31 NEVERTHELESS ACQUAINTANCES WORRY THAT HIS ATTENTION IS SPREAD FAR TOO THIN HE ONLY USES A QUARTER OF HIS MIND TO CARRY ON A CONVERSATION WITH ME IT'S LIKE TIMESHARING WITH A COMPUTER SAYS CHARLES STRAIN AN ENERGY CONSULTANT IN HOUSTON WHO ANALYZES INDEPENDENT PETROLEUM COMPANIES THERE IS NOTHING TOO LARGE OR SMALL FOR HIS ATTENTION AS A GEOLOGIST MR MITCHELL PERSONALLY ANALYZED ENGINEERS' REPORTS BEFORE APPROVING EACH OF THE 152 WELLS THAT MITCHELL ENERGY DRILLED LAST YEAR HE ALSO TOOK TIME TO PICK OUT THE CARPET FOR THE 70YEAROLD GALVEZ HOTEL HE BOUGHT IN MARCH AND STOOD OVER THE WORKERS INSTALLING IT HE SELECTED TEXASMADE BLUE BELL CREAMERIES ICE CREAM OVER HAAGENDAZS AS THE BRAND SERVED AT HIS SA'SPARILLA SODA FOUNTAIN HE ALSO INSISTED THAT BUFFALO MEAT APPEAR ON THE MENU AT ANOTHER ESTABLISHMENT THROUGH ALL OF THIS A SPEEDY POWERWALKING GAIT FORCES SOME EMPLOYEES TO BREAK INTO A JOG TO KEEP UP WITH HIM AROUND THE OFFICE IT'S LIKE HIS BODY IS TRYING TO CATCH UP WITH HIS BRAIN SAYS TONY LENTINI A MITCHELL ENERGY VICE PRESIDENT MR MITCHELL WRITES INTEROFFICE MEMOS SO FAST THAT MANY SUBORDINATES HAVE GIVEN UP ON HIS INDECIPHERABLE SCRAWL ON A RECENT SATURDAY MORNING HE IS MEETING WITH GALVESTON TROLLEYCAR DRIVER JOHN DUNDEE OVER COFFEE ON A SERIOUS MATTER THE SUBJECT A NEW WOODEN SIGN TO ADVERTISE THE TROLLEY AFTER CONSULTATION MR MITCHELL SAYS THE SIGN SHOULD INCLUDE A NOTICE THAT THE TROLLEY LEAVES EVERY 15 MINUTES THAT WAY PEOPLE WITH CHILDREN WON'T WORRY THAT THEY MIGHT HAVE TO WAIT AN HOUR MR MITCHELL ADVISES AS MR DUNDEE NODS AND HURRIES OFF TO HAVE THE SIGN CHANGED GALVESTON'S 4 1/2MILE TROLLEY SYSTEM IS ONE THING MR MITCHELL DOESN'T OWN BUT HE GOT IT BUILT HE PUT UP 350000 OF HIS OWN MONEY AND HIRED A GRANTSAVVY LAWYER WHO QUICKLY OBTAINED 12 MILLION IN FEDERAL FUNDS MR MITCHELL RECALLS SENTIMENTALLY THE GALVESTON WHERE HE GREW UP A RAW SEAPORT WHERE BOOTLEGGING AND GAMBLING FLOURISHED THE CITY WAS STILL RECOVERING FROM HURRICANE DAMAGE WHEN HIS IMMIGRANT FATHER ARRIVED IN 1905 HE HAD NOTHING NOT EVEN HIS OWN NAME HE SAYS MR MITCHELL'S FATHER SAVVAS PARASKEVOPOULOS WAS WORKING HIS WAY TOWARD TEXAS ON AN ARKANSAS RAILROAD GANG WHEN AN IRISH FOREMAN THREATENED TO FIRE GREEKS WITH LONG NAMES JUST TO SIMPLIFY HIS PAPER WORK SO MY FATHER SAID WELL WHAT'S YOUR NAME' SAYS MR MITCHELL SAVORING THIS FAMILYFAVORITE STORY WHEN THE FOREMAN ANSWERED MIKE MITCHELL THE QUICKTHINKING WORKER REJOINED FROM NOW ON THAT'S MY NAME TOO GEORGE MITCHELL GREW UP IN THE BUILDING THAT HOUSED HIS FATHER'S LAUNDRY AND PRESSING SHOP HE PAID HIS WAY THROUGH TEXAS A&M'S PETROLEUM ENGINEERING CURRICULUM BY WAITING TABLES AND SELLING PERSONALIZED STATIONERY TO CLASSMATES AFTER A WORLD WAR II STINT IN THE ARMY HE FORMED A COMPANY TO DO GEOLOGICAL RESEARCH FOR PETROLEUM DRILLERS BY THE LATE 1940S HE WAS ROUNDING UP INVESTORS FOR HIS OWN WELLS HIS CAREER RECORD OF STRIKING OIL OR GAS IN BETTER THAN ONE OUT OF EVERY TWO HOLES IS FAR ABOVE THE INDUSTRY AVERAGE SAYS MICHEL HALBOUTY A PETROLEUM ENGINEER WHO HAS INVESTED IN MANY OF MR MITCHELL'S WELLS I MUST KNOW A THOUSAND GEOLOGISTS AROUND THE WORLD BY THEIR FIRST NAME AND NONE HAS HIS FEEL FOR THE EARTH OR HIS LUCK TODAY MITCHELL ENERGY'S OIL AND GAS LEASES STRETCH OVER TWO MILLION ACRES AN AREA LARGER THAN RHODE ISLAND MR MITCHELL MANAGES IT ALL WITH AN INFORMALITY RARE IN LARGE COMPANIES EMPLOYEES BRAG THEY CAN STILL GET AWAY WITH TELLING OFF THE BOSS IN FACT THAT IS THE ONLY WAY MANY OF THEM CAN GET A WORD IN EDGEWISE WITH HIM BUT MR MITCHELL DIDN'T LISTEN TO ASSOCIATES WHO WARNED HIM AGAINST BUYING UP THENREMOTE PARCELS OF LAND IN THE LATE 1960S FOR WHAT HAS BECOME THE WOODLANDS RECALLS MR HALBOUTY I TOLD HIM THERE'S NOTHING OUT THERE BUT MOSQUITOES HIS GRAND PLAN FOR THE WOODLANDS SHOPPING AREA REQUIRES BUILDERS TO SET ASIDE 1 OF ARCHITECTURAL COSTS FOR PUBLIC SCULPTURES WE CAN CREATE THE GREAT CHARM OF EUROPEAN CITIES MR MITCHELL SAYS YET BUILDING 18 MILLION SQUARE FEET OF NEW RETAIL SPACE MORE THAN IN ALL OF DOWNTOWN MIAMI IN A REGION WHERE THE MAIN TRAFFIC ARTERIES ARE ALREADY RIDDLED WITH SHUTTERED OUTLETS STRIKES SOME AS FARFETCHED NOT MR MITCHELL BUT YOU UNDERSTAND NOW HE SAYS AFTER EXPLAINING HIS VISION TO A VISITOR YOU SEE 9307280123 930728 LAW LEGAL BEAT IDEA OF NOFAULT IN MEDICAL CASES GAINS SUPPORT OF STATE LAWMAKERS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL APPLYING NOFAULT LIABILITY TO MEDICAL MALPRACTICE ONCE CONSIDERED AN OBSCURE IDEA BEST SUITED FOR ACADEMIC DEBATE IS GAINING GROUND IN MANY STATE LEGISLATURES THE CONCEPT CALLS FOR AUTOMATICALLY REIMBURSING ALL PEOPLE INJURED DURING MEDICAL CARE EVEN IF THE CARE WASN'T NEGLIGENT PATIENTS WOULD FORFEIT THEIR RIGHT TO SUE AND INSTEAD WOULD BE PAID OUT OF A POOL FUNDED BY DOCTORS AND HOSPITALS WITH PRESSURE FOR HEALTHCARE REFORM INCREASING PROPONENTS SAY THE PLANS WOULD SAVE MONEY NOW SPENT ON LAWSUITS AND DISTRIBUTE AWARDS TO A WIDER VARIETY OF INJURED PEOPLE FLORIDA AND VIRGINIA ALREADY HAVE LIMITED VERSIONS OF SUCH PLANS AND NOFAULT PROPOSALS ARE BEING CONSIDERED IN NEW YORK NORTH CAROLINA AND COLORADO IN ADDITION SEN ROBERT GRAHAM OF FLORIDA HAS DRAFTED A BILL THAT WOULD SET UP A FEDERAL NOFAULT PLAN MOST STATES HAVE LONG USED SIMILAR NOFAULT PLANS TO PAY WORKERS' COMPENSATION CLAIMS AND SOME HAVE ADOPTED THEM FOR CARACCIDENT VICTIMS AS WELL BUT APPLYING THE IDEA TO HEALTH CARE IS CONSIDERED MUCH MORE CHALLENGING EVEN IN SOME PARTS OF THE ACADEMIC WORLD BECAUSE OF ITS POTENTIAL COST AND ADMINISTRATIVE COMPLEXITY A NOFAULT PLAN THEORETICALLY WOULD COMPENSATE THOUSANDS OF PEOPLE WHO WOULDN'T BE ABLE TO WIN MALPRACTICE SUITS BECAUSE NO ONE WAS AT FAULT IN CAUSING THEIR INJURY TYPICALLY THE AMOUNT OF PAYMENTS WOULD BE DECIDED BY A PANEL AFTER WEIGHING SUCH FACTORS AS ACTUAL MEDICAL COSTS EXPECTED FUTURE COSTS AND LOST WAGES PAYING SUCH CLAIMS COULD MAGNIFY THE COUNTRY'S HEALTHCARE TAB AT A TIME WHEN MOST HEALTH SPECIALISTS ARE SEARCHING FOR WAYS TO REDUCE IT MOST NOFAULT PROPOSALS ARE ON THE MOON SAYS FRAN MILLER A LAW PROFESSOR AT BOSTON UNIVERSITY UNLESS THE PLANS SEVERELY LIMIT THE AMOUNT OF MONEY THEY PAY IT'S OFF THE WALL IN TERMS OF WHAT IT WOULD COST THE STATE IN WHICH NOFAULT RECENTLY HAS GAINED THE MOST GROUND IS NEW YORK IN APRIL GOV MARIO CUOMO PROPOSED LEGISLATION THAT WOULD CREATE A LIMITED NOFAULT FUND TO COVER IMPAIRED NEWBORNS BY TAXING DOCTORS AND HOSPITALS FOR EACH BABY THEY DELIVER THE GOVERNOR FIRST BROACHED THE IDEA IN 1991 BUT LEGISLATORS' ENTHUSIASM THIS YEAR HAS SURPRISED EVEN PROPONENTS WE WERE PERMITTED INTO OFFICES WHERE A YEAR AGO THEY LAWMAKERS JUST TOLD US TO GO TO HELL SAYS MURRAY NUSSBAUM A UTICA NY GYNECOLOGIST WHO IS CHAIRMAN OF THE STATE CHAPTER OF THE AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS THERE WAS A WILLINGNESS TO LISTEN THE NEW YORK PROPOSAL'S PROSPECTS MAY HAVE RECEIVED A BOOST EARLIER THIS WEEK WHEN THE STATE INSURANCE DEPARTMENT ANNOUNCED ITS APPROVAL OF A 14 JUMP IN DOCTORS' MALPRACTICE INSURANCE PREMIUMS THE INCREASE WHICH THE DEPARTMENT ATTRIBUTED IN PART TO GROWTH IN THE NUMBER OF MALPRACTICE CLAIMS FILED FOLLOWS FOUR YEARS OF STEADY OR DECLINING RATES SUCH INCREASES TRADITIONALLY HAVE BOLSTERED INTEREST IN PLANS TO CURB MALPRACTICE SUITS EILEEN HICKEY A NEW YORK STATE ASSEMBLYWOMAN AND FORMER NURSE SAYS LEGISLATORS HAVE BEEN DRIVEN TO THINK ABOUT THESE ISSUES BECAUSE WE'VE SEEN THAT LITIGATION HAS DRIVEN UP THE COST OF INSURANCE INCLUDING DOCTORS' MALPRACTICE INSURANCE AND PATIENTS' HEALTH INSURANCE ALTHOUGH SHE QUIBBLES WITH SOME DETAILS OF THE GOVERNOR'S PROPOSAL SHE BELIEVES THE CONCEPT IS WONDERFUL BUT THE CONCEPT IS ANATHEMA TO NEW YORK PLAINTIFFS' LAWYERS AND THEIR FIERCE OPPOSITION TO IT IS A SIGN THAT SUCH PROPOSALS FACE SERIOUS OBSTACLES ELSEWHERE AS WELL THE ISSUE IS AN ESPECIALLY SENSITIVE ONE FOR LAWYERS BECAUSE IN THEORY THEY WOULD BE THE BIGGEST LOSERS UNDER A NOFAULT SYSTEM PLAINTIFFS' LAWYERS TRADITIONALLY HAVE OPPOSED MALPRACTICE REFORM ON THE GROUND THAT IT PREVENTS VICTIMS FROM GETTING ADEQUATE COMPENSATION FOR THEIR INJURIES BUT IF NOFAULT WORKS AS INTENDED MANY ADDITIONAL PATIENTS WOULD COLLECT DAMAGES WITHOUT EVER FILING A SUIT THE TRIAL BAR IS EXTREMELY UNHAPPY WITH NOFAULT AND THAT'S UNDERSTANDABLY SO SAYS PAUL WEILER A MALPRACTICE SPECIALIST AT HARVARD LAW SCHOOL WHO IS ONE OF THE COUNTRY'S LEADING ADVOCATES OF THE IDEA IT IS ATTACKING PART OF THEIR LIVELIHOOD AS A RESULT THE LAWYERS' CAMPAIGN AGAINST THE PROPOSAL HAS FOCUSED HEAVILY ON ITS PRACTICAL DRAWBACKS IN LOBBYING AGAINST THE PLAN IN NEW YORK THEY HAVE WARNED THAT IT WOULD REQUIRE PARENTS TO NAVIGATE THROUGH A CUMBERSOME BUREAUCRATIC PROCESS ONLY TO GET ULTIMATELY FAR LESS CASH THAN THEY MIGHT RECEIVE IN A MALPRACTICE CASE THE NEW YORK STATE TRIAL LAWYERS' ASSOCIATION ALSO HAS TAKEN OUT ADVERTISEMENTS DECLARING THAT THE NOFAULT PROGRAMS ADOPTED IN VIRGINIA AND FLORIDA HAVE HAD ABYSMAL RESULTS THE VIRGINIA PROGRAM HAS IN FACT HAD ITS TROUBLES PARENTS OF ONLY FIVE IMPAIRED CHILDREN HAVE FILED CLAIMS SINCE THE NOFAULT FUND WAS SET UP IN 1987 OFFICIALS OF THE VIRGINIA FUND WHICH NOW TOTALS 53 MILLION SAY THEY BELIEVE SOME PARENTS AREN'T AWARE OF ITS EXISTENCE AND DON'T KNOW THEY ARE ENTITLED TO PAYOUTS WE THINK THAT THERE MUST BE MORE CASES AROUND AND WE ARE BUSY LOOKING FOR THEM SAYS KINLOCH NELSON THE CHAIRMAN OF THE VIRGINIA PROGRAM WHATEVER THE IDEA'S ADMINISTRATIVE PITFALLS ITS PROPONENTS CONTEND THAT IT IS STILL A MORE EFFICIENT WAY OF HELPING INJURED PATIENTS THAN THROUGH LAWSUITS INDEED A 1991 HARVARD UNIVERSITY STUDY FOUND THAT ONLY ONE MALPRACTICE CLAIM IS FILED FOR EVERY 75 PATIENT INJURIES BELIEVED TO HAVE BEEN CAUSED BY NEGLIGENCE UNDER THE CURRENT MALPRACTICE SYSTEM THERE ARE A FEW PEOPLE WHO ARE BEING COMPENSATED IN HUGE AMOUNTS AND OF COURSE QUITE A NUMBER OF LAWYERS ON BOTH SIDES WHO ARE BEING COMPENSATED IN EVEN LARGER AMOUNTS SAYS PROF WEILER THE MONEY ISN'T REALLY ENDING UP IN THE HANDS OF THE PEOPLE WHO NEED IT A COMPANY SUING A FORMER TOP EXECUTIVE FOR ALLEGED WRONGDOING MUST ADVANCE HIM THE MONEY FOR HIS LEGAL DEFENSE A FEDERAL JUDGE IN NEW YORK RULED JUDGE CHARLES S HAIGHT JR CITED A LITTLEUSED PROVISION OF NEW YORK STATE CORPORATION LAW THAT ALLOWS A COURT TO ORDER SUCH PAYMENTS IN SOME CASES THE LAW SIMILAR TO THE CORPORATION LAWS OF DELAWARE AND OTHER STATES APPLIES IF A COMPANY COVERS THE LEGAL EXPENSES INCURRED BY OFFICERS AND DIRECTORS WHEN THEY ARE DOING THEIR JOBS AND ACTING IN GOOD FAITH THE COMPANY NEW YORK INDUSTRIAL CONCERN SEQUA CORP ACCUSED FORMER EXECUTIVE DAVID J O'BRIEN CAZENOVIA NY OF RACKETEERING AND FRAUD IN CONNECTION WITH FEES PAID TO A CONSULTING COMPANY THE COMPANY ARGUED THAT IT SHOULDN'T HAVE TO ADVANCE MONEY FOR THE LEGAL FEES BECAUSE IT MAINTAINS MR O'BRIEN WASN'T ACTING IN GOOD FAITH MR O'BRIEN HAS DENIED THE COMPANY'S ALLEGATIONS JUDGE HAIGHT SAID IN HIS RULING I DECLINE TO HOLD THAT JUST BECAUSE A CORPORATION ALLEGES A RACKETEERING CLAIM AGAINST ITS FORMER OFFICER IT DEPRIVES THAT OFFICER OF THE BENEFITS THE NEW YORK LEGISLATURE UNDERTOOK TO BESTOW IF MR O'BRIEN LOSES HOWEVER HE MAY BE REQUIRED TO REPAY THE COMPANY THE JUDGE SAID AFTER THE RULING WHICH WAS HANDED DOWN LAST WEEK SEQUA MOVED TO DISMISS MR O' BRIEN FROM THE LAWSUIT WHICH NAMED OTHER DEFENDANTS A SPOKESWOMAN SAID THE COMPANY HAD NO COMMENT ON WHETHER IT WOULD APPEAL THE RULING ON LEGAL FEES MILITARY BAN LAMBDA LEGAL DEFENSE AND EDUCATION FUND A NEW YORK GAYRIGHTS GROUP AND THE AMERICAN CIVIL LIBERTIES UNION FILED A LAWSUIT ASKING THAT THE MILITARY'S NEW POLICY ON HOMOSEXUALS BE DECLARED UNCONSTITUTIONAL THE POLICY ANNOUNCED BY THE CLINTON ADMINISTRATION LAST WEEK ALLOWS HOMOSEXUALS IN THE MILITARY AS LONG AS THEY KEEP THEIR SEXUALITY PRIVATE AND DON'T ENGAGE IN HOMOSEXUAL ACTS THE SUIT FILED IN FEDERAL COURT IN WASHINGTON ON BEHALF OF SEVEN ACTIVE DUTY AND RESERVE SERVICE MEMBERS ALLEGES THAT THE POLICY'S RESTRICTIONS VIOLATE FREESPEECH AND EQUALPROTECTION RIGHTS RIGHT TO DIE PEOPLE INCLUDING PRISONERS HAVE THE RIGHT TO REJECT MEDICAL TREATMENT EVEN IF IT MEANS THEY WILL DIE THE CALIFORNIA SUPREME COURT RULED THE ASSOCIATED PRESS REPORTED THAT THE DECISION CAME IN THE CASE OF A PRISONER WHO WAS PARALYZED FROM INJURIES IN AN ESCAPE ATTEMPT THE PRISONER LATER REFUSED TO EAT OR TAKE MEDICATION AND WAS FORCEFED UNDER COURT ORDERS OBTAINED BY PRISON DOCTORS THE STATE'S HIGH COURT SAID THAT THE RIGHT TO DIE ISN'T LIMITED TO PEOPLE WITH TERMINAL ILLNESSES OR WHO ARE IN EXCRUCIATING PAIN JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9307280122 930728 TECHNOLOGY DATA GENERAL CORP POSTS WIDER DEFICIT FOR ITS THIRD QUARTER WESTBOROUGH MASS DATA GENERAL CORP CITING WEAK EUROPEAN SALES AND PRICING PRESSURES POSTED A WIDENED THIRDQUARTER LOSS ON SLIGHTLY LOWER REVENUE IT HAD A LOSS OF 164 MILLION OR 47 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 117 MILLION OR 35 CENTS A SHARE REVENUE FELL ABOUT 26 TO 2524 MILLION FROM 2592 MILLION THE COMPUTER MAKER EARLIER HAD DISCLOSED THAT IT WOULD REPORT LOWERTHANEXPECTED REVENUE AND A WIDENED LOSS FOR THE THIRD QUARTER BEFORE THE ANNOUNCEMENT ANALYSTS HAD BEEN FORECASTING A NARROWED LOSS ON APPROXIMATELY FLAT REVENUE COMPARED WITH YEARAGO RESULTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY DATA GENERAL WAS TRADING AT 850 DOWN 125 CENTS THE COMPANY SAID ITS THIRDQUARTER LOSS REFLECTED A WEAK WORLDWIDE ECONOMY PARTICULARLY IN THE EUROPEAN MARKETPLACE AND INDUSTRYWIDE COMPETITIVE PRICING PRESSURES RONALD SKATES PRESIDENT AND CHIEF EXECUTIVE OFFICER ADDED THAT IN LIGHT OF CURRENT WORLDWIDE ECONOMIC CONDITIONS WE CONTINUE TO BE VERY CAUTIOUS ABOUT THE REMAINDER OF 1993 MR SKATES SAID DATA GENERAL'S AVIION LINE OF COMPUTERS THE COMPANY'S LEADING REVENUE PRODUCER POSTED STRONG REVENUE GROWTH COMPARED WITH THE YEAREARLIER QUARTER BUT REVENUE DECLINES IN THE COMPANY'S ECLIPSE LINE OF COMPUTERS AND IN ITS SERVICES BUSINESS MORE THAN OFFSET THE AVIION PERFORMANCE HE ADDED THAT THIRDQUARTER RESULTS ALSO REFLECTED THE NEGATIVE EFFECT OF CHANGES IN FOREIGNEXCHANGE RATES EXCLUDING THE EFFECTS THIRDQUARTER REVENUE WOULD HAVE BEEN HIGHER THAN A YEAR AGO FOR THE NINE MONTHS DATA GENERAL REPORTED A LOSS OF 232 MILLION OR 67 CENTS A SHARE COMPARED WITH A LOSS OF 63 MILLION OR 193 A SHARE A YEAR EARLIER REVENUE FELL 34 TO 7995 MILLION FROM 8278 MILLION 9307280121 930728 WHO'S NEWS PACIFIC TELESIS GROUP PACIFIC TELESIS GROUP SAN FRANCISCO MICHAEL J FITZPATRICK 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT STATEWIDE MARKETS FOR THE PACIFIC BELL UNIT OF THIS TELECOMMUNICATIONS COMPANY EFFECTIVE SEPT 1 MR FITZPATRICK IS CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NETWORK SYSTEMS CORP MINNEAPOLIS HE SUCCEEDS BOB LEE 44 WHO WAS NAMED EXECUTIVE VICE PRESIDENT REGIONAL MARKETS FOR PACIFIC BELL MR LEE SUCCEEDS MARTY KAPLAN 55 WHO WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT TECHNOLOGY AT PACIFIC BELL 9307280120 930728 GREYHOUND LINES EARNINGS SOARED IN SECOND PERIOD BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS AMID A STRUGGLE TO BOOST RIDERSHIP GREYHOUND LINES INC SAID THAT ITS NET INCOME FOR THE SECOND QUARTER SOARED TO 56 MILLION OR 43 CENTS A SHARE FROM 255000 OR THREE CENTS A SHARE A YEAR EARLIER THE RESULTS INCLUDED A NET GAIN OF 35 MILLION OR 26 CENTS A SHARE FROM THE BUS COMPANY'S SALE OF A LEASEHOLDING INTEREST IN ITS NEW YORK MAINTENANCE GARAGE THE PERSHARE RESULTS ALSO REFLECTED A 47 INCREASE IN SHARES OUTSTANDING TO 146 MILLION FROM 99 MILLION A YEAR EARLIER THE IMPROVED EARNINGS WERE IN LINE WITH ANALYSTS' PROJECTIONS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING GREYHOUND SHARES CLOSED AT 20125 UP 875 CENTS OR 45 THE RESULTS WERE MORE A REFLECTION OF GREYHOUND'S COSTCUTTING THAN A SURE SIGN THAT ITS CAMPAIGN TO WOO TRAVELERS WITH REDUCED FARES AND NEW ADVERTISING IS SUCCEEDING BECAUSE OF EFFORTS TO REDUCE MAINTENANCE COSTS AND ROUTE BUSES MORE EFFICIENTLY OPERATING EXPENSES FELL BY ABOUT 22 TO 156 MILLION FROM 1595 MILLION FOR THE SECOND QUARTER BUT REVENUE ALSO FELL SLIGHTLY TO 1679 MILLION FROM 1692 MILLION A YEAR EARLIER FOR JUNE GREYHOUND REPORTED THAT ITS PASSENGER TRAFFIC GREW 46 TO 5271 MILLION REVENUE PASSENGER MILES FROM 5038 MILLION IN A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER TRAVELING ONE MILE THE COMPANY SAID IT FILLED ABOUT 581 OF ITS SEATS IN JUNE UP FROM THE 565 REPORTED A YEAR EARLIER FOR THE QUARTER REVENUE PASSENGER MILES INCREASED BY ABOUT 54 TO 15 BILLION FROM 14 BILLION FROM THE YEAREARLIER PERIOD WHEN GREYHOUND RIDERSHIP WAS BATTERED BY FALLING AIRFARES FOR THE FIRST SIX MONTHS OF 1993 REVENUE PASSENGER MILES WERE FLAT AT ABOUT 27 BILLION THE REAL QUESTION FOR THIS COMPANY IS WHETHER IN THE LONG RUN THEY CAN GET PEOPLE BACK ON THE BUSES SAID ANTHONY LOWBEER AN ANALYST WITH M KIMELMAN & CO NEW YORK SO FAR THE RIDERSHIPS RESULTS AREN'T WHAT I'D HOPED THEY WOULD BE VIVIAN LEE AN ANALYST WITH SMITH BARNEY PRAISED GREYHOUND'S COSTCUTTING SAYING THAT THEY HAVE POSITIONED THEMSELVES FOR THE WORST AND I DON'T THINK THAT THEY ARE GOING TO STUMBLE SHE ADDED HOWEVER THAT I THINK INVESTORS ARE REALLY WAITING FOR REVENUE GROWTH AND I DON'T SEE THAT HAPPENING J MICHAEL DOYLE GREYHOUND EXECUTIVE VICE PRESIDENT OPERATIONS ACKNOWLEDGED THAT THE ECONOMY DOES CONTINUE TO BEAT US UP NOTING RIDERSHIP WAS OFF SIGNIFICANTLY IN CALIFORNIA DURING THE QUARTER ALTHOUGH HE DESCRIBED RIDERSHIP TRENDS IN OTHER MARKETS AS GENERALLY POSITIVE 9307280119 930727 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 9307280118 930728 CORRECTIONS & AMPLIFICATIONS THE DISCOVERY CHANNEL A US DOCUMENTARY FILM CHANNEL IS OWNED BY DISCOVERY COMMUNICATIONS INC WHICH IN TURN IS CONTROLLED BY TELECOMMUNICATIONS INC COX CABLE COMMUNICATIONS NEW CHANNELS CORP WHICH IS A UNIT OF NEWHOUSE BROADCASTING CO AND THE CHANNEL'S FOUNDER JOHN S HENDRICKS AN ARTICLE FRIDAY INCORRECTLY STATED THAT THE CHANNEL WAS A UNIT OF METROGOLDWYNMAYER INC 9307280117 930728 INTERNATIONAL VOLKSWAGEN CHAIRMAN ALLEGES GM MAY HAVE PLANTED PAPERS NEWS CONFERENCE IS PLANNED TODAY ON LOPEZ AFFAIR' GM REJECTS ACCUSATIONS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG CHAIRMAN FERDINAND PIECH WARNED THAT VW WILL NO LONGER HOLD BACK IN THE MUDSLINGING FIGHT AGAINST GENERAL MOTORS CORP'S ALLEGATIONS OF INDUSTRIAL ESPIONAGE AND SUGGESTED THAT INCRIMINATING DOCUMENTS MAY HAVE BEEN PLANTED BY GM SIGNALING A DRASTIC CHANGE OF TACTIC FROM THE TACITURN DECLARATIONS OF INNOCENCE THAT HAVE BEEN VW'S ONLY DEFENSE THUS FAR MR PIECH IN AN INTERVIEW IN THE MAGAZINE STERN TO BE PUBLISHED TOMORROW BLASTED GM FOR WHAT HE CALLED A CAMPAIGN TO DEFAME FORMER GM PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA MR PIECH ALSO SAID HE WOULD HOLD A NEWS CONFERENCE THIS MORNING VW SPOKESMEN CONFIRMED THAT MR PIECH WOULD TALK ABOUT THE LOPEZ AFFAIR AND MAKE COMMENTS ABOUT IMPROVED ORDER INFLOW WE WILL NOT BE SAYING THAT MR LOPEZ HAS BEEN FIRED NOR WILL WE BE SAYING THAT THE SHARE IS BEING SUSPENDED FROM TRADING SAID A SPOKESMAN DISMISSING SPECULATION HE DECLINED TO OFFER FURTHER DETAILS ABOUT WHAT WILL BE PRESENTED DEPICTING THE DISPUTE BETWEEN GM THE US'S LARGEST AUTO MAKER AND VW EUROPE'S LARGEST AS NOTHING LESS THAN AN ECONOMIC WAR MR PIECH IN THE STERN INTERVIEW BALDLY ACCUSED GM OF RESORTING TO CHARACTER DEFAMATION AND MUDSLINGING TO PREVENT THE GERMAN COMPANY FROM BENEFITING FROM HAVING WON AWAY MR LOPEZ THE BEST COSTCUTTER IN THE WORLD MR PIECH INSINUATED THAT GM MIGHT HAVE TAMPERED WITH THE EVIDENCE THAT IS THE CENTERPIECE OF GERMAN PROSECUTORS' INVESTIGATION NAMELY THE FOUR BOXES FULL OF CARTONS THAT WERE LEFT IN A WIESBADEN GERMANY APARTMENT OCCUPIED BY FORMER GM COLLEAGUES WHO FOLLOWED MR LOPEZ TO VW WHAT WAS IN THESE BOXES ORIGINALLY AND WHAT WAS HANDED OVER TO THE PUBLIC PROSECUTOR LONG AFTER THE EMPLOYEES MOVED OUT OF THE HOUSE IS A COMPLETELY OPEN QUESTION IN THE MEANTIME THE CARTONS WERE POSSIBLY AVAILABLE TO OUR OPPONENTS AND WERE THEN BROUGHT TO THE POLICE A GM SPOKESMAN LABELED MR PIECH'S ACCUSATIONS ABSURD AND SAID THE COMPANY REFUSED TO RESPOND TO COMMENTS ON THIS BASE LEVEL MR PIECH ALSO SAID VW IS CONDUCTING AN INTERNAL INVESTIGATION TO SEE WHETHER COMPUTER FILES FROM GM OR ITS GERMAN SUBSIDIARY ADAM OPEL AG WERE ILLICITLY PLANTED ON VW COMPUTERS MR PIECH SUGGESTED THAT PEOPLE WITHIN HIS COMPANY WHO MIGHT HAVE OLD CONNECTIONS TO THE OUTSIDE OR COMPUTER HACKERS WHO COULD BREAK INTO THE VW SYSTEM MIGHT HAVE TRIED TO PLANT INCRIMINATING FILES TO HURT THE COMPANY IF SOMETHING IS IN OUR SYSTEM SOMEONE HAS FOISTED IT ON ME MR PIECH IS QUOTED AS SAYING HE ADDED THAT IF HIS INTERNAL CONTROLS TURNED UP ANYTHING VW WOULD GO TO THE PUBLIC PROSECUTORS AND FILE ACCUSATIONS OF SABOTAGE GM SOURCES HAVE EXPRESSED THE REVERSE CONCERN NAMELY THAT VW EMPLOYEES MIGHT BE IN THE PROCESS OF DESTROYING ANY COMPUTER FILES THAT WOULD INDICATE THE PRESENCE OF GM INFORMATION IN WOLFSBURG GERMANY WHERE VOLKSWAGEN IS BASED THE DARMSTADT GERMANY PUBLIC PROSECUTORS WHO ARE IN CHARGE OF INVESTIGATING THE ACCUSATIONS OF INDUSTRIAL SABOTAGE SAID THEY HAVE MADE NO EFFORT TO INVESTIGATE THE VW COMPUTER FILES ONCE THE ACCUSATIONS AGAINST MR LOPEZ WERE OUT IN THE OPEN IT WOULD HAVE BEEN NAIVE TO THINK THAT A SEARCH OF THE VW COMPUTER SYSTEM OR FILING CABINETS WOULD HAVE TURNED UP ALLEGEDLY STOLEN DOCUMENTS OR COMPUTER FILES STILL IN VW HANDS IF THERE HAD BEEN ANY THE PROSECUTORS SAID MR PIECH'S THEORY OF AN INTERNATIONAL CONSPIRACY AGAINST VW FOUND LITTLE RESONANCE AMONG INDUSTRY WATCHERS AND THE GERMAN PRESS INDUSTRY INSIDERS COMMENTED THAT THE STATEMENT SEEMED TO BE AN ACT OF DESPERATION AS VW STRUGGLES TO SHAKE THE NEGATIVE PUBLICITY TODAY'S EDITION OF THE POPULAR BILD ZEITUNG TABLOID MOCKED THE TEARJERKING TESTIMONIAL SAYING HYSTERIA IS NO REPLACEMENT FOR INFORMATION 9307280116 930728 USX POSTS LOSS FOR SECOND QUARTER MINIMILL NUCOR'S EARNINGS ROSE 75 BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH USX CORP REPORTED A 311 MILLION SECONDQUARTER LOSS ON A BIG CHARGE AT ITS US STEEL UNIT WHILE STEEL MINIMILL NUCOR CORP POSTED A 75 INCREASE IN PROFIT HOWEVER THE RESULTS AT BOTH COMPANIES WERE OVERSHADOWED YESTERDAY BY THE US INTERNATIONAL TRADE COMMISSION'S DECISION TO DROP MOST OF THE TRADE CASES FILED BY US STEELMAKERS ON THE NEWS USXUS STEEL SHARES CLOSED DOWN 475 OR 13 TO 31875 AND SHARES OF NUCOR WHICH HAD OPPOSED THE SUITS SLID 425 OR 5 TO 8125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE TRADE RULING WILL LIKELY KILL A DAYOLD EFFORT TO RAISE PRICES IN THE FOURTH QUARTER INLAND STEEL INDUSTRIES INC ON MONDAY ADVISED CUSTOMERS IT WOULD RAISE PRICES FOR MOST SHEETSTEEL PRODUCTS BY 15 A TON OR 3 TO 5 ON OCT 3 BUT OTHERS ARE UNLIKELY TO FOLLOW THE LEAD AFTER YESTERDAY'S DECISION USX'S LOSS COMPARED WITH A YEAREARLIER PROFIT OF 183 MILLION WAS LIGHTENED BY A SMALL PROFIT OF 21 MILLION OR SEVEN CENTS A SHARE AT MARATHON GROUP ITS OIL UNIT THAT WAS DOWN FROM 181 MILLION OR 63 CENTS A SHARE A YEAR EARLIER BUT FRED LEUFFER AN OIL ANALYST WITH BEAR STEARNS SAID THAT EXCLUDING INVENTORY ADJUSTMENTS AND OTHER ITEMS MARATHON'S PERSHARE PROFIT ACTUALLY WAS 18 CENTS BETTER THAN THE 10 CENTS HE EXPECTED AND THE YEAREARLIER FOUR CENTS MARATHON'S SALES SLIPPED TO 310 BILLION FROM 322 BILLION MR LEUFFER SAID MARATHON BENEFITED FROM AN IMPROVEMENT IN REFINING EARNINGS PROMPTED BY LOWER COSTS AND BETTER PRICES HE ALSO PREDICTED CONTINUED IMPROVEMENT FOR THE COMPANY HOWEVER BECAUSE MARATHON HAS LESS EXPOSURE TO NATURAL GAS PRICES WHICH HAVE RISEN SHARPLY AND HASN'T HAD A MAJOR COSTCUTTING PROGRAM ITS RESULTS WEREN'T AS STRONG AS THOSE OF SOME RIVALS BUT WHILE MARATHON'S RESULTS BEAT SOME FORECASTS US STEEL'S PROFIT DID NOT THE EARNINGS WHICH UBS SECURITIES ANALYST CHARLES BRADFORD PUT AT TWO CENTS A SHARE EXCLUDING UNUSUAL ITEMS WERE BELOW THE FORECASTS OF 45 CENTS A SHARE ANALYSTS HAD MADE BEFORE THE COMPANY ISSUED PRELIMINARY RESULTS EARLIER THIS MONTH THE NET LOSS FOR US STEEL WAS 333 MILLION OR 566 A SHARE INCLUDING THE PREVIOUSLY ANNOUNCED CHARGE OF 403 MILLION RELATED TO AN ANTITRUST LAWSUIT INVOLVING A FORMER UNIT THE YEAREARLIER PROFIT WAS 2 MILLION OR THREE CENTS A SHARE SALES CLIMBED TO 143 BILLION FROM 127 BILLION AS SHIPMENTS SURGED 134 WHILE MR BRADFORD SAID US STEEL WAS HURT BY A WEAK JUNE AND BY OPERATING PROBLEMS HE SAID RESULTS STILL WERE BETTER THAN A YEAR EARLIER WHEN THE COMPANY LOST 19 CENTS A SHARE EXCLUDING SPECIAL ITEMS MR BRADFORD SAID THAT THE UNFAVORABLE TRADE RULING WILL DECREASE THE SLOPE OF IMPROVEMENT FOR US STEEL AND RIVALS BUT HE SAID IT WON'T HURT THIRDQUARTER RESULTS BECAUSE ORDERS AND PRICES ALREADY ARE BOOKED HE SAID THE COMPANY HAS ADVISED ANALYSTS THAT IT EXPECTS THIRDQUARTER EARNINGS OF 50 CENTS A SHARE NUCOR MEANWHILE RECORDED A PROFIT OF 304 MILLION OR 70 CENTS A SHARE UP FROM 174 MILLION OR 40 CENTS A SHARE A YEAR EARLIER THE COMPANY'S SALES SWELLED TO 5649 MILLION FROM 3891 MILLION NUCOR THE NATION'S LARGEST STEEL MINIMILL HAS BEEN AIDED BY ITS LOW COSTS AND ITS RAPID EXPANSION ANALYSTS SAID THE COMPANY BASED IN CHARLOTTE NC COULD BE HURT BY THE TRADE RULING AND BY CLIMBING PRICES FOR SCRAP STEEL NUCOR'S RAW MATERIAL SEPARATELY THREE OTHER STEELMAKERS BETHLEHEM STEEL CORP NATIONAL STEEL CORP AND ARMCO INC'S ARMCO STEEL ARE STRUGGLING TO REACH NEW LABOR ACCORDS TO REPLACE CONTRACTS EXPIRING JULY 31 BUT ANALYSTS SAID A STRIKE WAS UNLIKELY THE THREE CONTROL ABOUT 20 OF THE MARKET THE UNITED STEELWORKERS UNION WHICH ALREADY HAS REACHED AN ACCORD WITH INLAND HAS AUTHORIZED STRIKES AT THE STEELMAKERS BUT BOTH SIDES CHARACTERIZED THE TALKS AS AMIABLE 9307280115 930728 LEISURE & ARTS THE BIG BAD WOLF RECONSIDERED BY GAIL KING LAND BETWEEN THE LAKES KY LITTLE RED RIDING HOOD WAS RIGHT ON TWO COUNTS WOLVES HAVE GREAT BIG EARS AND GREAT BIG TEETH SHE WAS WRONG ABOUT GREAT BIG ARMS WOLVES HAVE DELICATE ALMOST DAINTY LEGS THAT CARRY THEM WITH LIGHTNESS AND GRACE MOREOVER THE ENTIRE RED RIDING HOOD PREMISE IS ASKEW WOLVES DO NOT EAT PEOPLE AND THEY MOST CERTAINLY LACK THE CLEVERNESS TO PLAN AN ATTACK INVOLVING PLAYACTING GRANDMA I LEARNED THE REVISIONIST VIEW OF WOLVES EARLIER THIS YEAR WHEN I WENT TO THE WOODLAND NATURE CENTER TO SEE THE FOUR GREATLY PRIZED OFFSPRING OF REDWOLF MALE NO 350 AND FEMALE NO 305 THE CENTER SITUATED IN THE MIDST OF LAND BETWEEN THE LAKES LBL A 170000ACRE WILDLIFE AND RECREATION AREA IN WESTERN KENTUCKY OWNED AND MANAGED BY THE TENNESSEE VALLEY AUTHORITY IS ONE OF SEVERAL CAPTIVEBREEDING FACILITIES IN THE NATION PEERING DOWN THROUGH THE HOLE AT THE TOP OF THE CONCRETE SEPTIC TANK THAT SERVES AS THE MAIN DEN IN THE SPACIOUS SHADY PEN I SAW MAMA NESTLING ONE PUP SHE'S SHY AND SECRETIVE AND DEFENSIVE OF HER PUPS SAID RICK LOWE A MANAGER/BIOLOGIST AT LBL WE AS BIOLOGISTS VIEW THIS AS VERY POSITIVE ON THE OTHER HAND WE'RE GLADFOR PUBLIC EDUCATION THAT THE MALE WILL TOLERATE PEOPLE THE MALE TAIL TUCKED EARS STUCK OUT FROM THE SIDE OF HIS HEAD WATCHED US NERVOUSLY FROM A BACK CORNER OF THE PEN WALLY BRINES AN LBL NATURALIST EXPLAINED HE AND I HAD A SHOWDOWN YESTERDAY HE STARTED PRANCING WHILE I WAS IN THE PEN SHOWING HIS AGGRESSION WE DO NOT WANT HIM TO SHOW ANY AGGRESSION OR ANY FRIENDLINESS FOR THAT MATTER IT WOULD MEAN HE IS GETTING ACCUSTOMED TO HUMANS AND THAT WOULD RUIN HIS CHANCES TO RETURN TO THE WILD SO I HOLLERED AT HIM AND CHASED HIM FOR A MINUTE NOW HE FOR SURE DOESN'T WANT ANYTHING TO DO WITH ME IN THE SMALLER EARTHEN DEN BEHIND THE SEPTICTANK DEN IT WAS EASIER TO SEE THE PUPS TWO STARTLED BY HUMANS LOOMING ABOVE THE DEN ENTRY AT FIRST TUCKED THEIR FACES IN EACH OTHER'S STOMACHS AND THEN AFTER A MINUTE OR TWO STUCK THEIR HEADS UP NOSES ATWITTER EARS STRAIGHT UP THE EARS OVERWHELMED THEIR FACES THEY DIDN'T EXPOSE THEIR TEETH TO US BUT MR BRINES SAID THE VET REPORTED THE PREVIOUS WEEK THAT THEIR CANINES WERE THE SIZE OF PENCILS LATER AT FEEDING TIME WHEN THE BRAVEST PUP FROLICKED ALONG THE FRONT OF THE PEN EVERYBODY SAID AH THOSE EARS ISN'T HE CUTE THE CUTENESS OF THE WOLF PUPS IS A PUBLICRELATIONS ADVANTAGE BUT THESE PUPS AREN'T BEING RAISED AS CROWDPLEASERS IT IS HOPED THAT THEY WILL INHERIT THE MOTHER'S STRONG AVERSION TO HUMAN CONTACT THEREBY ENSURING THEY WON'T BE A MENACE IF RETURNED TO THE WILD THE RED WOLF CANIS RUFUS ONCE ROAMED THE SOUTHEAST US FROM EAST TEXAS TO VIRGINIA FROM THE OHIO RIVER VALLEY TO THE GULF OF MEXICO PEOPLE MOVED INTO THE TERRITORY AND NOT ONLY ENCROACHED ON THE WOLVES' NATIVE HABITAT BUT INDISCRIMINATELY SLAUGHTERED THE ANIMALS FEDERAL PREDATORCONTROL SPECIALISTS SYSTEMATICALLY EXTERMINATED RED WOLVES AND THEIR NORTHERN COUSINS GRAY WOLVES UNTIL 1964 BY 1973 RED WOLVES QUALIFIED AS AN ENDANGERED SPECIES THE SUCCESS OF A CAPTIVEBREEDING PROGRAM LED TO A PROPOSAL IN 1983 TO SET FREE A PAIR OF CAPTIVEBRED WOLVES IN LBL A GREAT PROTEST AROSE FROM LIVESTOCK OWNERS ANIMALWELFARE ACTIVISTS CONCERNED THAT THE WOLVES WOULD POSE A THREAT TO THE COYOTES WHO HAD MOVED INTO THIS NECK OF THE WOODS DURING A GREAT EASTWARD MIGRATION IN 1976 HUNTERS CONCERNED THAT THE INTRODUCTION OF AN ENDANGERED SPECIES MIGHT BE THE FIRST STEP TOWARD CLOSING LBL TO HUNTERS AND THE RECREATIONMINDED ADAMANT IN THEIR BELIEF THAT WOLVES COULDN'T COEXIST WITH CAMPERS FISHERMEN AND BOATERS AFTER THE LBL SHOUTING MATCH WOLVES STAYED IN PENS UNTIL 1987 WHEN THE FIRST PAIR MOVED INTO THE ALLIGATOR RIVER NATIONAL WILDLIFE REFUGE IN NORTH CAROLINA THIS SPRING'S CROP OF 61 SURVIVING PUPS BROUGHT THE TOTAL US POPULATION TO 252 ALL STILL IN PENS EXCEPT FOR FOUR FAMILIES IN ALLIGATOR RIVER AND TWO FAMILIES IN THE GREAT SMOKY MOUNTAINS NATIONAL PARK RED WOLVES LIVE IN FAMILY UNITS THEY DO NOT RUN IN PACKS AS DO GRAY WOLVES EXCEPT FOR VISITS FROM A VET AND A PHOTOGRAPHER HUMANS GO INTO THE PEN ONLY AT LATEAFTERNOON FEEDING TIME THE DAY I VISITED THE INTERN WHO BROUGHT THE FOOD STOOD INSIDE THE PEN HER BACK TO THE MALE WHILE THE TOURISTS GATHERED TO HEAR A TALK ON RETURN OF THE RED WOLF WHAT DO THEY EAT ANSWER DOG FOOD WITH SUPPLEMENTS AREN'T YOU AFRAID OF HIM ANSWER THERE HAS NEVER BEEN A DOCUMENTED ATTACK OF A HUMAN BY A HEALTHY WOLF WHERE ARE THE PUPS ANSWER WAITING FOR ME TO GET OUT OF THE PEN SO THEY CAN EAT DO THEY HOWL ANSWER SOMETIMES USUALLY IN ANSWER TO WILD COYOTES DO WE BOTHER THEM ANSWER NOT AS LONG AS YOU ARE QUIET AND OUTSIDE THE FENCE RID OF THE HUMANS THE MALE CHECKED THE FOOD PANS NEWLY SHED OF HIS WINTER COAT HE WAS SLEEK AND BUSINESSLIKE AS HE TROTTED LIGHTLY ACROSS THE PEN HE ATE OUT OF THE BACK PAN SNIFFED THE FRONT PAN AND THEN LAY QUIETLY IN HIS CORNER CALMLY WATCHING A WOODPECKER POUND THE HICKORY THAT SHADED HIM WHILE A COUPLE OF GRACKLES AND A BLUEJAY SWIPED SOME OF THE FOOD AFTER A FEW MINUTES MAMA BROUGHT THE PUPS TO FEED IN THE WILD THE MALE WOULD KILL A SMALL MAMMAL AND LEAVE IT AT THE DEN OPENING HE DOES NOT GO INTO THE DEN WHILE THE PUPS ARE THERE HE STAYS WITH THE FAMILY AS PROTECTOR AND PROVIDER UNTIL IT IS TIME TO MATE AGAIN NEXT SPRING THROUGH WHAT TRICKS OF MYTHOLOGY AND LANGUAGE DID THIS MONOGAMOUS PROVIDER BECOME A SYMBOL FOR THE LADIES' MAN WHILE MANY PROBLEMS SURROUND THE RED WOLF'S REINTRODUCTION TO THE WILD INCLUDING CONTROVERSIES ABOUT THE ANIMAL'S TAXONOMY AS COMPARED WITH THAT OF THE GRAY WOLF AND THE COYOTE AND QUESTIONS ABOUT THE WORTH OF CAPTIVEBREEDING PROGRAMS IN GENERAL THE GREATEST PROBLEM REMAINS SOCIOLOGICAL THAT LITTLE RED RIDING HOOD' SYNDROME IS DEEPROOTED MR LOWE SAID MS KING IS A WRITER IN HENDERSON KY 9307280114 930728 REPUBLIC PICTURES PLAN APPROVED LOS ANGELES REPUBLIC PICTURES CORP SAID ITS SHAREHOLDERS APPROVED A RECAPITALIZATION CALLING FOR THE CONVERSION OF TWO CLASSES OF COMMON STOCK INTO A SINGLE CLASS THE RECAPITALIZATION IS PART OF THE ANNOUNCED TRANSACTION UNDER WHICH BLOCKBUSTER ENTERTAINMENT CORP ACQUIRED 25 MILLION SHARES OF REPUBLIC CLASS A COMMON FOR 25 MILLION WHICH IT CONVERTED FOR ONE SHARE OF THE NEW COMMON EACH SHARE OF CLASS B WAS SWAPPED FOR 12 SHARES OF THE NEW COMMON THE CONVERSION RESULTED IN ABOUT 74 MILLION SHARES OF NEW COMMON BLOCKBUSTER A VIDEO RETAILER HOLDS ABOUT A 35 STAKE IN REPUBLIC A FILM DISTRIBUTOR AND PRODUCER 9307280113 930727 FINANCIAL COLOSSUS HONGKONG & SHANGHAI TURNS BOLD AMBITIONS INTO CASH IN THE TILL ENORMOUSLY PROFITABLE BANK SHEDS ITS COLONIAL IMAGE ASSEMBLES GLOBAL EMPIRE OPERATING LIKE A FEDERATION BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG AT THE WORLD'S RICHEST BANK CAREERS BEGIN AT A PLACE CALLED CLOUDLANDS HONGKONG & SHANGHAI BANK'S FRESH RECRUITS COME TO THE AIRY TILEROOFED DORMITORY ON A SCENIC HILLTOP TO LEARN THE BANK'S RULES AND RITUALS THEY STUDY FINANCE PLAY TENNIS AND EACH THURSDAY DINE ON INDIAN CURRY AND CHUTNEY JUST AS NEW HIRES HAVE FOR MORE THAN A CENTURY BUT QUAINT CUSTOMS ARE GIVING WAY TO ASTOUNDING AMBITION THESE DAYS AT HONGKONG BANK WITH THIS BRITISH COLONY DUE TO REVERT TO CHINA IN 1997 THE BANK RESTRUCTURED ITSELF LAST YEAR TO CREATE A LONDONBASED PARENTHSBC HOLDINGS PLC THE GROUP THEN SHELLED OUT NEARLY 6 BILLION FOR BRITAIN'S AILING MIDLAND BANK DOUBLING ITS SIZE OVERNIGHT NOW TOP EXECUTIVES HINT AT EXPANSION IN THE US THERE'S METHOD TO THE MOVES HSBC IS RACKING UP THE FATTEST PROFITS IN BANKING LAST YEAR THE GROUP EARNED 185 BILLION THIS YEAR IT COULD EARN 25 BILLION AND NEXT YEAR'S PROFITS ANALYSTS PREDICT WILL TOP A STAGGERING 3 BILLION MORE THAN ANY OTHER BANK IN HISTORY FORTIFIED BY THAT INCOME BRITAIN'S LAST GREAT COLONIAL BANK IS DOING WHAT MANY AMERICAN EUROPEAN AND JAPANESE BANKS LONG HAVE DREAMED OF AND OFTEN FAILED AT BUILDING A GLOBAL FINANCIALSERVICES EMPIRE IN ASIA CENTERPIECE HONGKONG & SHANGHAI BANK SPINS VAST PROFITS IN EUROPE MIDLAND IS RECOVERING FROM A BATTERING OF BAD LOANS AND IN NORTH AMERICA THE GROUP IS PINNING ITS HOPES ON A NEWLY REVITALIZED AND EXPANSIONMINDED US SUBSIDIARY MARINE MIDLAND BANK ANCHORED IN THOSE KEY MARKETS HSBC IS TRYING TO REDEFINE ITSELF AS A GLOBAL FEDERATION OF WELLCAPITALIZED AUTONOMOUS BANKS AND FINANCIAL HOUSES LINKED BY OWNERSHIP BUT NOT BY NAME THE APPROACH IS REVOLUTIONARILY DIFFERENT FROM THE SINGLECORPORATEIDENTITY STRUCTURE HSBC'S CHIEF GLOBAL RIVAL NEW YORKBASED CITICORP PURSUES I SUPPOSE WE'RE SEEN TO BE UNIQUE IN THAT WE'RE NOT ATTEMPTING TO RUN THIS GLOBAL OPERATION IN ONE NAME FROM ONE CENTRAL SPOT SAYS SIR WILLIAM PURVES HSBC'S STEWARDLY CHAIRMAN AT 61 THE SILVERHAIRED SCOTSMAN DOESN'T MIND DOING THINGS DIFFERENTLY INDEED HE IS SOMETHING OF A BANKING ANACHRONISM HE STARTED HIS CAREER AS A QUILLWIELDING BANKER'S APPRENTICE THEN WENT INTO THE ARMY NOT UNIVERSITY AND WON A MEDAL FOR BRAVERY IN THE KOREAN WAR AFTER THAT EXPOSURE TO ASIA HE JOINED HONGKONG BANK MR PURVES KNOWN IN THE BANK AS WILLIE LETS MANAGERS MAKE THEIR OWN DECISIONS THOUGH THE FORMER CHIEF ACCOUNTANT IS FAMOUSLY QUICK TO SPOT WORRISOME TRENDS AND PHONE MANAGERS TO POINT THEM OUT AT THE MOMENT MR PURVES IS CONCERNED BY PROFITABILITY WHICH HE CALLS IN A WAY UNSATISFACTORY THE PROBLEM HE SAYS IS THAT TOO MUCH OF HSBC'S IMMENSE PROFITS FLOW FROM ASIA ESPECIALLY THIS BUSTLING PORT WHERE THE BANK GOT ITS START 28 YEARS AGO HSBC HAS OFFICES IN 66 COUNTRIES FROM AUSTRALIA TO ZAMBIA WE ARE A LARGE GROUP AND NEED BALANCE WORRIES MR PURVES TO GET THAT BALANCE HSBC IS GIVING SUBSIDIARIES THE SAME KIND OF MONITORED AUTONOMY THAT MR PURVES GIVES MANAGERS SOME OUTSIDERS QUESTION THE STRATEGY YOU COULD ASK IS HONGKONG BANK GLOBALIZING OR JUST MAKING INVESTMENTS SAYS ROBIN MONRODAVIES MANAGING DIRECTOR OF IBCA LTD A UK CREDITRATING AGENCY IT'S A FAIR QUESTION HSBC HAS A REPUTATION FOR POOR CONTROL OF SUBSIDIARIES BAD LOANS MADE BY MARINE MIDLAND DURING THE 1980S FOR INSTANCE CAME CRASHING HOME IN 1990 AND 1991 WHEN ITS LOSSES TOTALED 4855 MILLION TO PRECLUDE MORE SUCH COSTLY SURPRISES HSBC MERCILESSLY SLASHED THE BUFFALO NY UNIT'S ASSETS TO 165 BILLION FROM 27 BILLION AND TRIMMED A QUARTER OF ITS STAFF MR PURVES SAYS MARINE MIDLAND NOW IS POSITIONED TO TAKE OPPORTUNITIES AS THEY ARISE THE GROUP'S WILLINGNESS TO TAKE ON RISKS MAY EXPLAIN HOW HSBC ENDED UP WITH 7577 MILLION IN SHAKY LOANS TO OLYMPIA & YORK GROUP FOR WHICH HSBC HAS TAKEN PROVISIONS OF 450 MILLION OR HOW CONCORD LEASING INC INCURRED BAD DEBTS OF 1364 MILLION MORE THAN ITS TOTAL CAPITAL AND RESERVES HSBC SALVAGED THE NORWALK CONN SUBSIDIARY WITH A 100 MILLION CAPITAL INJECTION FORTUNATELY WE'VE ALWAYS BEEN A WELLCAPITALIZED BANK SO WE'VE BEEN ABLE TO PUT OUR HOUSE IN ORDER MR PURVES SAYS FAT PROFITS AND A CONSIDERABLE CUSHION OF CAPITAL AND RESERVES ROUGHLY EQUIVALENT TO 12 OF ITS 258 BILLION ASSET HOARD ALSO EXPLAIN WHY DESPITE PAST GLITCHES OVERSEAS INVESTORS STILL VALUE HSBC'S OUTSTANDING STOCK AT SOME 21 BILLION MORE THAN ANY OTHER BANK OUTSIDE OF JAPAN WITH ITS FARFLUNG HOLDINGS THE BANK IS TRYING HARD TO SHED ITS HONG KONG IMAGE AT TIMES THE BANK SEEMS TO BE MOVING FASTER THAN SOME OF ITS EMPLOYEES WE GET GUYS FROM MEDICINE HAT CANADA SENT HERE FOR TRAINING AND THEY SUDDENLY DISCOVER THEY'RE NOT WORKING FOR SOME MICKEY MOUSE HOLEINTHEWALL CHINESE BANK SAYS MATTHEW SMITH WHO HEADS A TRAINING CENTER HERE FOR VISITING STAFF WHEN THEY SEE HOW BIG AND DIVERSE WE ARE THEY GO BACK MORE ENTHUSIASTIC THIS AUTUMN MR PURVES AND A TEAM OF EXECUTIVES WILL MOVE TO A NEW HEADQUARTERS IN LONDON CEMENTING HSBC'S FEDERATION STRATEGY AND BRINGING TO A CLOSE ITS COLONIAL ERA SOME TRADITIONS WILL SURVIVE THOUGH HSBC FLEW A CHINESE GEOMANCY EXPERT TO LONDON TO BE SURE THE OFFICE WAS LAID OUT TO ENSURE MAXIMUM GOOD FORTUNE HSBC WILL NEED ALL THE GOOD FORTUNE IT CAN GET PARTICULARLY IN LONDON MIDLAND ACQUIRED AFTER A BITTER TAKEOVER FIGHT WITH LLOYDS BANK WAS THE WORLD'S BIGGEST BANK HALF A CENTURY AGO BUT A SPATE OF BAD DEVELOPINGWORLD AND CORPORATE LOANS AND A DISASTROUS FORAY INTO THE US BANKING MARKET IN THE 1980S WHEN MIDLAND BOUGHT AND THEN SOLD AT A LOSS CALIFORNIA'S CROCKER NATIONAL CORP HAD MADE MIDLAND THE SICK MAN OF BRITISH BANKING SKEPTICS WHISPER THAT HSBC'S MIDLAND PURCHASE WAS NOTHING MORE THAN A DESPERATE MOVE TO BUY RESPECTABILITY IN LONDON A DECADE EARLIER BRITAIN REJECTED A HONGKONG BANK BID FOR ROYAL BANK OF SCOTLAND ON THE GROUND THE COLONIAL BANK WASN'T BRITISH OWNED AND REGULATED BRINGING MIDLAND INTO LINE WILL BE A CRITICAL TEST OF HSBC'S GLOBAL STRATEGY MIDLAND'S COST STRUCTURE HAS DEFEATED SUCCESSIVE MANAGEMENTS' ATTEMPTS TO BRING IT DOWN LEHMAN BROTHERS NOTED IN A REPORT LAST NOVEMBER HSBC EXECUTIVES COUNTER THAT THE UK BANK'S LOW RETURNS AND HIGH COST STRUCTURES LEAVE BIG ROOM FOR IMPROVEMENT MERELY BY CUTTING SUBSTANTIAL OVERLAP BETWEEN THE TWO BANKS HSBC BELIEVES IT CAN TRIM COSTS BY 110 MILLION A YEAR STARTING IN 1994 WITHOUT SLASHING THE BANK'S SIZE OR SELLING ANY OF ITS MYRIAD INVESTMENTS IN OTHER EUROPEAN COMPANIES WE DID NOT BUY MIDLAND TO CUT IT IN HALF MR PURVES DECLARES SO FAR HSBC'S LOGIC APPEARS TO BE PREVAILING MIDLAND LAST YEAR EARNED 1545 MILLION SWINGING FROM A LOSS OF 591 MILLION AN INNOVATIVE ALLELECTRONIC BANKBYTELEPHONE VENTURE FIRSTDIRECT HAS ATTRACTED AT LEAST A QUARTER OF A MILLION CUSTOMERS HELPED BY BIG TAX CREDITS FROM THE BAD YEARS MIDLAND'S PROFIT COULD HIT 650 MILLION THIS YEAR ACCORDING TO NOMURA RESEARCH INSTITUTE SYNERGIES ALSO HAVE EMERGED HSBC'S TREASURY DIVISION WHICH HANDLES FOREIGNEXCHANGE AND MONEYMARKET DEALINGS HAS BEEN CONSOLIDATED UNDER THE NAME MIDLAND CAPITAL MARKETS ITS LONDON DEALING ROOM BOASTS 750 POSITIONS ON A SINGLE TRADING FLOOR HSBC'S TREASURER CYPRUSBORN CHRIS PAVLOU RUNS THE DIVISION AGGRESSIVELY THERE IS NO CURRENCY IN THE WORLD WE ARE NOT INVOLVED WITH HE BRAGS ALTHOUGH HSBC DOESN'T DISCLOSE TREASURY PROFITS ANALYSTS THINK THE UNIT CONTRIBUTES UP TO 15 OF EARNINGS BUT SUCH EARNINGS ARE DEPENDENT ON FICKLE MARKETS FINDING STEADIER GLOBAL NICHES WILL CHALLENGE HSBC WHICH FOR ALL ITS INTERNATIONAL ASPIRATIONS STILL MAKES ABOUT TWOTHIRDS OF ITS PROFITS IN HONG KONG NOTHING BETTER SYMBOLIZES ITS DEPENDENCE ON THE COLONY THAN ITS DRAMATIC BATTLESHIPGRAY BILLIONDOLLAR HEADQUARTERS DESIGNED BY NORMAN FOSTER THE HIGHTECH GLASSANDGIRDER STRUCTURE IS A HONG KONG LANDMARK HSBC DOMINATES COMMERCEACCOUNTING FOR 60 OF LOCAL BANKING BUSINESS THE BANK'S INFLUENCE BRINGS CERTAIN RESPONSIBILITIES AND OPPORTUNITIES UNDER AN UNUSUAL LEGAL ARRANGEMENT BRITAIN'S TWO MAIN BANKS HERE HONGKONG & SHANGHAI BANK AND STANDARD CHARTERED BANKJOINTLY ISSUE THE LOCAL CURRENCY THE HONGKONG BANK BUILDING NOT QUEEN ELIZABETH II IS ON THE FACE OF HONGKONG BANK NOTES WHEN THE PROPERTY MARKET STARTS LOOKING OVERHEATED AS IT DOES NOW THEY IMPOSE RESTRICTIONS ON MORTGAGE LENDING BANKS WON'T LEND MORE THAN 60 AGAINST PROPERTIES PRICED AT MORE THAN 640000 THEY ARE ALSO CALLED ON TO BAIL OUT OTHER BANKS WHEN THEY HIT BAD PATCHES ONE BAILOUT TURNED INTO HONGKONG BANK'S BEST SINGLE MOVE IN 1965 IT PAID TODAY'S EQUIVALENT OF 65 MILLION FOR A 50 STAKE IN A TROUBLED LOCAL BANK HANG SENG BANK LTD KNOWN THEN CHIEFLY FOR THE HANG SENG INDEX IT COMPILES TO MEASURE THE STOCK MARKET'S PERFORMANCE HANG SENG HAS SINCE TURNED AROUND OPENED BRANCHES IN EVERY SUBWAY STATION IN THE TERRITORY AND NOW EARNS THE HIGHEST RETURN ON CAPITAL OF ANY BANK IN THE WORLD NEARLY 30 COMPARED WITH 19 FOR HSBC HONGKONG BANK'S STAKE IN THE BANK WHICH HAS GROWN TO 615 NOW IS WORTH 65 BILLION OWNING A RETAIL BANK IN HONG KONG IS SO LUCRATIVE BECAUSE THE FIX IS IN ON INTEREST RATES THAT IS UNDER AN UNUSUAL ARRANGEMENT THE HONG KONG ASSOCIATION OF BANKS DECIDES DEPOSIT RATES THE RESULT IS THAT SAVINGS DEPOSIT RATES IN HONG KONG ARE NOW 15 WHILE MORTGAGES CARRY RATES OF MORE THAN 8 THAT WIDE DIFFERENCE IN SAVINGS AND LENDING RATES INFURIATES LOCAL ACTIVISTS IT'S A CARTEL IT'S SO OBVIOUS COMPLAINS CK LAW HEAD OF RESEARCH AT SOUTH CHINA BROKERAGE LTD AND A FORMER HONGKONG BANK ECONOMIST THE GENERAL PUBLIC AS A WHOLE IS SUBSIDIZING BANK PROFITS SUCH COMFORTABLE CERTAINTIES ARE FAST COMING TO AN END THOUGH WHEN THIS COLONY OF NEARLY SIX MILLION REVERTS TO CHINA IN FOUR YEARS HONGKONG BANK FOR THE FIRST TIME SINCE ITS FOUNDING WON'T BE THE CODDLED INSTITUTION OF THE ESTABLISHMENT THOUGH ITS UPPER ECHELONS REMAIN PREDOMINANTLY POPULATED BY BRITISH EXPATRIATES THEY PROFESS LITTLE WORRY ABOUT POLITICS AFTER BEIJING SLAMMED A BRITISH TRADING COMPANY HERE A CENTRAL BANK OFFICIAL IN CHINA QUICKLY POINTED OUT THAT HONGKONG BANK IS A FRIEND OF CHINA THUS ENSURING CONFIDENCE IN THE TERRITORY'S BIGGEST BANK IN ANY CASE HSBC OFFICIALS SAY THEY AREN'T PARTICULARLY WORRIED ABOUT 1997 THAT MAY BE BRAVADO THE IMPLICATIONS OF THE TRANSITION ARE COMPLEX PROPERTY AND STOCK PRICES HAVE BEEN SOARING TO SUCH HEIGHTS THAT HSBC'S SENIOR EXECUTIVE FOR THE COLONY PAUL SELWAYSWIFT FRETS THAT THEY MAY GO THROUGH A DIFFICULT PERIOD CHINA'S RISING PRESENCE ALREADY IS BRINGING NEW COMPETITION AFTER HSBC THE SECONDBIGGEST NETWORK OF BANKS IN THE COLONY IS OWNED BY BEIJING AND IT OFFERS THE PROMISE OF LINKS TO HONG KONG'S FUTURE RULERS NOT ITS PAST THE BANK OF CHINA BUILDING AN ANGULAR SPIRE OF BLUE MIRROR GLASS DESIGNED BY IM PEITOWERS OVER HONGKONG BANK'S HEADQUARTERS SOON BANK OF CHINA WILL ALSO BECOME A CURRENCYISSUING BANK SOME AT HONGKONG BANK SEE 1997 AS AN OPPORTUNITY IF CHINA REALLY BELIEVES HONG KONG AND CHINA ARE THE SAME COUNTRY THERE SHOULD BE NO LINE DIVIDING BANKS IN THE TWO PLACES SAYS EDWIN LAU THE TOPRANKING HONG KONG CHINESE OFFICIAL AT THE BANK SO AS CHINA MOVES INTO HONG KONG HONGKONG BANK IS TRYING TO REESTABLISH ITS PREEMINENCE IN CHINA IT HAS KEPT A PRESENCE THERE SINCE 1865 DESPITE WARS REVOLUTION AND MORE THAN FOUR DECADES OF COMMUNISM AND NOW HAS 13 OFFICES SCATTERED AROUND THE COUNTRY OLDER CHINESE REMEMBER THE BANK HONGKONG & SHANGHAI BANK WILL NEVER STOP GROWING DECLARES XU CHUNRONG A 79YEAROLD CLERK WHO WEARS A SILVER BANKLOGO TIE AND WORKS IN THE FASTEXPANDING SHANGHAI BRANCH SON AND GRANDSON OF BANK EMPLOYEES MR XU JOINED IN 1932 DURING THE JAPANESE OCCUPATION OF WORLD WAR II HE PAID THE BANK'S POSTOFFICE BOX FEE EVERY YEAR TO KEEP IT OPEN AFTER THE COMMUNISTS CAME TO POWER SHANGHAI'S NEW MUNICIPAL GOVERNMENT TOOK OVER THE BANK'S MASSIVE DOMED HEADQUARTERS ONCE THE PROUDEST BUILDING ALONG THE CHINESE CITY'S RIVERFRONT NOW HSBC IS INTERESTED IN BUYING IT BACK IT HAS ALREADY FOUND THE TWO BRONZE LIONS THAT USED TO SIT WHERE TWO PEOPLE'S LIBERATION ARMY SOLDIERS NOW GUARD THE ENTRANCE NATURALLY THE INTERNATIONAL GROWTH OF HSBC MEANS CHANGE IN COLONIAL TRADITIONS LIKE CLOUDLANDS ONLY ABOUT 400 SOCALLED INTERNATIONAL OFFICERS TRADITIONALLY THE HONGKONG BANK OFFICERS WHO COULD BE SHIPPED TO ANY COLONIAL OUTPOST ON A DAY'S NOTICE OUT OF HSBC'S TOTAL WORK FORCE OF 100000 STARTED HERE SO A WIDER RANGE OF EMPLOYEES IS BEING SENT TO CLOUDLANDS FOR SHORTTERM TRAINING TODAY'S TRAINEES ARE VIDEOTAPED PRACTICING PRESENTATIONS THEY LEARN TO TRADE CURRENCIES IN A MOCK FOREIGNEXCHANGE DEALING EXERCISE THEN THEY PLUNK DOWN ON PILLOWS WRAP BLANKETS AROUND EACH OTHER AND LEARN SOMETHING THEY WILL ALSO NEED HOW TO MEDITATE TO REDUCE STRESS 9307280112 930728 WHO'S NEWS NORFOLK SOUTHERN CORP NORFOLK SOUTHERN CORP NORFOLK VA DONALD W SEALE 40 YEARS OLD WAS NAMED VICE PRESIDENT MERCHANDISE MARKETING FOR THIS TRANSPORTATION COMPANY SUCCEEDING WILLIAM E VOLTZ WHO DIED LAST MONTH MR SEALE HAD BEEN ASSISTANT VICE PRESIDENT SALES AND SERVICE IN THE COAL DIVISION THOMAS L FINKBINER 40 WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT INTERMODAL HE HAD BEEN SENIOR ASSISTANT VICE PRESIDENT INTERNATIONAL AND INTERMODAL MARKETING 9307280111 930728 HEALTH STATISTICIANS OCCUPY FRONT LINES IN BATTLE OVER PASSIVE SMOKING BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL IN THE CONTROVERSY OVER PASSIVE SMOKING THE DIFFERENCE BETWEEN 90 AND 95 HAS BECOME A MATTER OF LIFE AND DEATH THE US ENVIRONMENTAL PROTECTION AGENCY SAYS THERE IS A 90 PROBABILITY THAT THE RISK OF LUNG CANCER FOR PASSIVE SMOKERS IS SOMEWHERE BETWEEN 4 AND 35 HIGHER THAN FOR THOSE WHO AREN'T EXPOSED TO ENVIRONMENTAL SMOKE TO STATISTICIANS THIS CALCULATION IS CALLED THE 90 CONFIDENCE INTERVAL AND THAT SAY TOBACCOCOMPANY STATISTICIANS IS THE RUB NINETYNINE PERCENT OF ALL EPIDEMIOLOGICAL STUDIES USE A 95 CONFIDENCE INTERVAL SAYS GIO B GORI DIRECTOR OF THE HEALTH POLICY CENTER IN BETHESDA MD WHO HAS FREQUENTLY SERVED AS A CONSULTANT AND AN EXPERT WITNESS FOR THE TOBACCO INDUSTRY THESE FIVE PERCENTAGE POINTS WILL HAUNT THE COMING BATTLE IN A NORTH CAROLINA COURTROOM WHERE TOBACCO INTERESTS LED BY PHILIP MORRIS COS AND RJR NABISCO HOLDINGS CORP HAVE SUED THE EPA THE TOBACCO COMPANIES WANT THE COURT TO DECLARE NULL AND VOID THE EPA'S REPORT THIS YEAR CONVICTING ENVIRONMENTAL TOBACCO SMOKE OF CAUSING LUNG CANCER IN NONSMOKERS THE EVIDENCE UNDERLYING THE EPA FINDING WAS MANIPULATED TO FALSELY DISPARAGE CIGARETTES THE COMPANIES CHARGE THE EPA RETORTS THAT ITS EVIDENCE IS FAR STRONGER THAN THAT WHICH HAS LED TO BANNING OTHER SUBSTANCES IN THE ENVIRONMENT SUSPECTED OF CAUSING CANCER ALTHOUGH THE TRIAL IS STILL MONTHS AWAY THE VALIDITY OF THE EVIDENCE ALREADY IS BEING WEIGHED BY INDIVIDUALS MANAGERS CITY AND STATE LEGISLATURES AND OTHERS WHO HAVE THE POWER TO BAN SMOKING IN THEIR IMMEDIATE ENVIRONS ONLY LAST WEDNESDAY THE EPA CITING ITS EARLIER CONCLUSIONS URGED SCHOOLS DAYCARE CENTERS PARENTS PARTY HOSTS AND OTHERS TO VOLUNTARILY BAN SMOKING IN THEIR RESPECTIVE AREAS OR TO AT LEAST INCREASE VENTILATION THE SCIENTIFIC CASE AGAINST ENVIRONMENTAL TOBACCO SMOKE IS NOW OVERWHELMING DECLARES A RECENT EDITORIAL IN THE JOURNAL OF THE NATIONAL CANCER INSTITUTE BY DAVID M BURNS A SPECIALIST IN PULMONARY MEDICINE AT THE UNIVERSITY OF CALIFORNIA SAN DIEGO DR BURNS CITES THE EPA REPORT AS OFFERING A COMPLETED CHAIN OF EVIDENCE CONVICTING ENVIRONMENTAL SMOKE OF CAUSING CANCER ONE LINK IN THE CHAIN IS THE FACT THAT THE SAME PROVEN CANCERCAUSING CHEMICALS FOUND IN DIRECTLY INHALED CIGARETTE SMOKE MAINSTREAM SMOKE ARE FOUND IN THE EXHALED OR ENVIRONMENTAL SMOKE THE FINAL LINK IS THE EVIDENCE THAT NONSMOKERS EXPOSED TO ENVIRONMENTAL SMOKE HAVE A HIGHERTHANNORMAL INCIDENCE OF LUNG CANCER THIS LAST LINK OF EVIDENCE IS BASED IN LARGE PART ON STUDIES OF NONSMOKING WOMEN WHO LIVED WITH LONGTIME SMOKERS ADDING UP THE RESULTS FROM 11 SUCH STUDIES THE EPA CONCLUDED THAT THE NONSMOKING WOMEN WHO LIVE WITH SMOKERS HAVE ON THE AVERAGE A 19 HIGHER RISK OF DEVELOPING LUNG CANCER THAN COMPARABLE WOMEN WHO LIVE IN A SMOKEFREE HOME THE RISK IS HIGHER FOR WIVES OF HEAVY SMOKERS AND LOWER FOR WIVES OF LIGHT SMOKERS THIS 19 HIGHER RISK TRANSLATES INTO 1500 TO 1760 WOMEN DYING EACH YEAR OF LUNG CANCER CAUSED BY BREATHING OTHER PEOPLE'S CIGARETTE SMOKE THE EPA STATISTICIANS CALCULATED AN EQUAL NUMBER OF NONSMOKING MEN ALSO DIE OF LUNG CANCER FROM ENVIRONMENTAL SMOKE FOR A TOTAL OF MORE THAN 3000 DEATHS A YEAR THE EPA REPORT DECLARES THE TOBACCO LAWYERS AND THEIR STATISTICIAN CONSULTANTS ATTACK THE 19 INCREASED RISK AS BEING SO SMALL AS TO BE CANCELED OUT BY UNKNOWNS IN THE PASSIVESMOKING STUDIES ONE POTENTIAL ERROR THE INDUSTRY MAINTAINS IS THE LACK OF INFORMATION ON THE DIETS OF THE NONSMOKERS IT IS POSSIBLE THEY ARGUE THAT THOSE WHO LIVED IN SMOKEFREE HOMES MIGHT HAVE CONSUMED HIGHER AMOUNTS OF BETA CAROTENE AND OTHER NUTRIENTS THAT ARE CLAIMED TO REDUCE THE RISK OF CANCER IF SO THEN THE STUDIES ARE ACTUALLY MEASURING A LOWERTHANNORMAL RISK AMONG NONSMOKERS INSTEAD OF A HIGHERTHANNORMAL RISK IN THOSE WHO BREATHE ENVIRONMENTAL SMOKE OR SO THE INDUSTRY WILL ARGUE TO TOP IT OFF THE INDUSTRY CONSULTANTS ASSERT IN MANY INSTANCES RESEARCHERS HAD TO ASK RELATIVES ABOUT HOW MUCH ENVIRONMENTAL SMOKE A DECEASED LUNGCANCER PATIENT HAD BEEN EXPOSED TO ENOUGH RELATIVES PROBABLY ERRED IN THEIR RECOLLECTIONS OF THE SMOKING HABITS OF THE DECEASED'S HUSBAND OR FATHER TO MAKE THE STUDIES' CONCLUSIONS TOTALLY UNRELIABLE THE CONSULTANTS ARGUE WHEN STATISTICIANS ON BOTH SIDES GO AT IT CALCULATORACALCULATOR IN THE COMING TRIAL THEY WILL PRESENT A SERIES OF ARCANE ARGUMENTS ABOUT HOW MUCH THESE UNKNOWNS AFFECT THE STUDY'S RELIABILITY WHEN THE 19HIGHERRISK FIGURE WAS FIRST CALCULATED A STATISTICAL TEST DETERMINED ITS STATISTICAL SIGNIFICANCE THE TERM REFERS TO THE ODDS THAT THE ANSWER WAS THE RESULT OF CHANCE EXPLAINS KENNETH G BROWN AN INDEPENDENT STATISTICIAN CONSULTANT IN CHAPEL HILL NC WHO DID THE RISK CALCULATIONS THIS LATTER CALCULATION SHOWED THAT THERE WERE ONLY TWO CHANCES OUT OF 100 A PROBABILITY OF 002 THAT THE 19 FIGURE WAS A MATTER OF HAPPENSTANCE THIS MORE THAN MEETS THE STANDARD OF 005 FIVE CHANCES OUT OF 100 AT WHICH MOST SCIENTIFIC STUDIES ARE CONSIDERED STATISTICALLY SIGNIFICANT MR BROWN SAYS THAT IT WAS DURING THE REVIEWS OF THE FINAL DRAFTS THAT A SECOND RELIABILITY CALCULATION WAS ADDED TO GIVE REVIEWERS A BETTER FEELING FOR THE RELIABILITY OF THE CALCULATIONS THIS SECOND CALCULATION PRODUCED THE CONTROVERSIAL 90 CONFIDENCE INTERVAL OR 90 PROBABILITY THAT THE LUNGCANCERRISK RANGE IS BETWEEN 4 AND 35 HIGHER FOR PASSIVE SMOKERS THAN THOSE WHO AREN'T SO EXPOSED THE HEALTH POLICY CENTER'S DR GORI EXPLAINS THAT THE STANDARD IN SUCH STUDIES IS TO CALCULATE THE RANGE WITHIN WHICH IT IS 95 CERTAIN THAT THE TRUE ANSWER LIES RATHER THAN THE RANGE FOR A 90 CERTAINTY THE REASON THE EPA DIDN'T USE THE STANDARD 95 CONFIDENCE INTERVAL DR GORI SAYS IS THAT IT WOULD BE SO WIDE IT MIGHT EVEN HINT THAT PASSIVE SMOKING ACTUALLY REDUCED THE RISK OF LUNG CANCER ALTHOUGH SUCH A CALCULATION WASN'T MADE IT MIGHT SHOW FOR INSTANCE THAT PASSIVE SMOKERS' RISK OF LUNG CANCER RANGES FROM SAY 15 LOWER TO 160 HIGHER THAN THE RISK RUN BY THOSE IN A SMOKEFREE ENVIRONMENT THE ISSUE ISN'T TOBACCO BUT THE LEGITIMACY OF THE SCIENCE UNDERLYING THE EPA REPORT DR GORI SAYS WE SHOULDN'T PERMIT THIS KIND OF LICENSE HE SAYS DR WOOD THE EPA CONSULTANT SAYS THAT DR GORI IS CORRECT IN SAYING THAT USING A 95 CONFIDENCE INTERVAL WOULD HINT THAT PASSIVE SMOKING MIGHT REDUCE THE RISK OF CANCER BUT HE SAYS THIS IS EXACTLY WHY IT WASN'T USED THE EPA BELIEVES IT IS INCONCEIVABLE THAT BREATHING IN SMOKE CONTAINING KNOWN CANCERCAUSING SUBSTANCES COULD BE HEALTHY AND ANY HINT IN THE REPORT THAT IT MIGHT BE WOULD BE MEANINGLESS AND CONFUSING HE EXPLAINS I COULD HAVE PRESENTED ANY LEVEL OF CONFIDENCE INTERVAL YOU WANTED AND IT STILL WOULDN'T CHANGE THE CONCLUSION THAT PASSIVE SMOKING BOOSTS THE RISK OF LUNG CANCER AN AVERAGE OF 19 HE SAYS THE CONFIDENCE INTERVAL ISN'T A SUBSTANTIVE ISSUE MR WOOD SAYS THE 90 CONFIDENCE INTERVAL USED IN THE REPORT WAS ADDED FOR THE CONVENIENCE OF SCIENTIFICALLY ORIENTED READERS THE TOBACCO INDUSTRY'S HARPING ON IT HE SAYS IS JUST TO CONFUSE THE PUBLIC 9307280110 930728 TREASURY PLANS SALE OF SHORTTERM BILLS TO RAISE 205 BILLION WASHINGTON THE TREASURY PLANS TO RAISE 205 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 2236 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING NOV 4 1993 AND FEB 3 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G40 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794H72 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9307280109 930728 INTERNATIONAL CZECH GOVERNMENT CLOSER TO BREWERY STAKE AUCTION PRAGUE THE CZECH GOVERNMENT IS GETTING CLOSER TO AUCTIONING OFF A MINORITY STAKE IN ITS PRIZE BREWERY BUDWEISER BUDVAR WITH ANHEUSERBUSCH COS VIEWED AS A PROBABLE BIDDER PRIVATIZATION MINISTER JIRI SKALICKY SAID IN COMMENTS PUBLISHED MONDAY THAT A GOVERNMENT STAKE IN BUDVAR NOT EXCEEDING 34 WOULD BE SOLD AT AUCTION PRIVATIZATION OF BUDVAR HAS BEEN A POLITICAL FOOTBALL SINCE THE COUNTRY THREW OFF ITS COMMUNIST GOVERNMENT AND BEGAN SELLING STATE INDUSTRIES THE CZECHS HAVE BEEN TALKING TO ANHEUSER FOR MORE THAN A YEAR BUT THEY HAVE BEEN RELUCTANT TO SELL A STAKE TO AN AMERICAN COMPANY THAT MAKES A BUDWEISER BEER THAT TO CZECH TASTES BEARS LITTLE SEMBLANCE TO THE ROBUST TASTE OF BUDVAR THE ST LOUIS BEERMAKER IS KEENLY INTERESTED IN BUYING A STAKE BECAUSE IT WOULD HELP SOLVE A LONGRUNNING TRADEMARK DISPUTE BETWEEN THE TWO COMPANIES BOTH OF WHICH CLAIM THEY MAKE THE REAL BUD PEOPLE CLOSE TO THE GOVERNMENT SAID THAT IF THE AUCTION PLAN IS APPROVED BIDDERS WILL BE EVALUATED NOT ONLY ON WHAT THEY ARE WILLING TO PAY BUT WHAT STRATEGIES THEY HAVE FOR BUDVAR BUDVAR PRODUCES 159 MILLION GALLONS OF BEER A YEAR AND EXPORTS TWOTHIRDS NOMURA INTERNATIONAL PLC HAS BEEN ASKED BY THE MINISTRY OF AGRICULTURE TO RUN THE AUCTION IF IT IS APPROVED 9307280108 930728 UNOCAL IS GRANTED A DELAY ON GEAR TO SLASH THE SMOG LOS ANGELES UNOCAL CORP SAID SOUTHERN CALIFORNIA'S AIRQUALITY REGULATORS AGREED TO ALLOW THE COMPANY EMISSION CREDITS FROM A PROGRAM TO BUY HEAVYPOLLUTING OLD CARS THUS PERMITTING ITS REFINERY HERE TO DELAY INSTALLATION OF CERTAIN SMOGREDUCTION EQUIPMENT UNDER UNOCAL'S PROGRAM CALLED SCRAP III THE OIL COMPANY WILL BUY 350 PRE1972 MODEL CARS FOR 700 APIECE WHICH IT CLAIMS WILL REDUCE AIR EMISSIONS BY 20 MORE THAN IF IT HAD SIMPLY PROCEEDED WITH THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT'S REQUIRED MODIFICATIONS WHICH CALL FOR INSTALLATION OF VAPORRECOVERY EQUIPMENT AT UNOCAL'S MARINE TERMINAL IN LOS ANGELES HARBOR THE COMPANY BEGAN ITS CARBUYBACK PROGRAM IN 1990 BUT THIS IS THE FIRST TIME IT HAS RECEIVED CREDITS FROM AIRQUALITY REGULATORS SEPARATELY UNOCAL COMPETITOR ATLANTIC RICHFIELD CO TOLD THE STATE'S AIRQUALITY REGULATORS THE CALIFORNIA AIR RESOURCES BOARD THAT IT STRONGLY OPPOSES GRANTING VARIANCES TO UNOCAL AND TWO OTHER REFINERS CHEVRON CORP AND ULTRAMAR CORP THEY CONTEND THAT THEY CAN'T MEET AN OCT 1 DEADLINE FOR PROVIDING CLEANERBURNING DIESEL FUEL THROUGHOUT THE STATE 9307280107 930728 REVIEW & OUTLOOK EDITORIAL THE MUMMY'S CURSE A PEASANT VISITS HIS BEIJING COUSIN WHO TAKES HIM TO SEE MAO TSETUNG'S TOMB AIYA THE PEASANT CRIES IT'S SO BIG CHAIRMAN MAO NEVER WANTED TO DISTANCE HIMSELF FROM THE MASSES HE WAS ONE OF US WHY SUCH A BIG MAUSOLEUM TWO REASONS ANSWERS THE CITY COUSIN FIRST TO MAKE CERTAIN THERE'S ENOUGH ROOM IN THERE TO BURY DENG XIAOPING AND THE SECOND TO PROVE THAT THEY'RE BOTH REALLY DEAD SUCH GALLOWS HUMOR IS SWEEPING CHINA IN THE WAKE OF RUMORS THAT THE COUNTRY'S PINTSIZED PARAMOUNT LEADER DENG XIAOPING IS DYING HE HAS NOT APPEARED IN PUBLIC OR ON TELEVISION SINCE CHINESE NEW YEAR CELEBRATIONS IN JANUARY THEN HIS HAND VISIBLY TREMBLED HE HAD TROUBLE SPEAKING AND HE COULD BARELY WALK IN THE PAST SIX MONTHS HE HAS BEEN SAID TO BE SUFFERING EVERYTHING FROM PNEUMONIA TO TESTICULAR CANCER THE RUMORS HAVE REACHED SUCH A PITCH THAT CROWDS LINGER OUTSIDE BEIJING'S TOP HOSPITAL FOR THE OLD GUARD IN SHORT THE DENG XIAOPING DEATHWATCH IS AGAIN UNDER WAY WE SAY AGAIN BECAUSE RUMOR HAS HAD HIM DEAD OR DYING MANY TIMES BEFORE IN AN EFFORT TO DAMPEN THE SPECULATION THE OFFICIAL XINHUA NEWS AGENCY REPORTED SATURDAY THAT MR DENG HAD WRITTEN AN INSCRIPTION FOR A NEW BRIDGE IN SHANGHAI CYNICS IMMEDIATELY ASKED WHEN HE WROTE THE INSCRIPTION SUCH IS THE STATE OF AFFAIRS OF STATE IN CHINA TODAY NO ONE KNOWS WHAT IS REALLY GOING ON THE QUESTION OF WHO SUCCEEDS MR DENG IS A CASE IN POINT THE CONSTITUTION OF THE PEOPLE'S REPUBLIC OF CHINA VAGUELY SUGGESTS AN AVENUE OF SUCCESSION NOTING THAT THE NATION'S ULTIMATE POWER RESTS WITH THE NATIONAL PEOPLE'S CONGRESS BUT CHINA'S CONSTITUTION IS A BATTERED DOCUMENT FOR ALL THE STIFF LEGAL LANGUAGE THERE IS NO SUCCESSION PROCESS POWER COMES ONLY FROM THE CHINESE COMMUNIST PARTY THIS IS WHY MR DENG'S DEMISE IS ANTICIPATED WITH SUCH A WEIRD MIXTURE OF HOPE ANTICIPATION AND DREAD NOBODY KNOWS WHAT COMES NEXT DEMOCRACIES OF COURSE HAVE SOLVED THE SUCCESSION PROBLEM THROUGH THE PRACTICE OF REGULAR ELECTIONS FOR CHINA'S COMMUNISTS THAT IS NOT AN OPTION INSTEAD THEY HAVE ESTABLISHED A SINGULAR FORM OF LEGITIMACY REVOLUTIONARY HISTORY MR DENG HOLDS NO STATE OFFICE AND ATTENDS NO STATE FUNCTIONS BUT HE REMAINS THE BARELY LIVING EMBODIMENT OF THE COMMUNIST REVOLUTION HIS PRESENCE NO MATTER HOW FEEBLE REPRESENTS THE PERMANENCE OF THE COMMUNIST IDEA IN CHINA ONCE HE GOES SO TOO GOES A KEY SOURCE OF THE COMMUNIST PARTY'S LEGITIMACY CALL IT THE MUMMY'S CURSE THE KLATCH OF COMMUNIST DOTARDS WHO FOUGHT THEIR WAY TO POWER IN THE 1930S AND 1940S NOW CLING TO LIFE AND POWER BECAUSE THEY HAVE NO ONE IN WHOM TO ENTRUST THE FUTURE OF THEIR REVOLUTION AND HEREIN LIES THE HOPEFUL DYNAMIC THAT UNDERGIRDS THE DENG XIAOPING DEATHWATCH THE RUMORS AND JOKES THAT CIRCULATE ABOUT THE OLD MAN'S DEATH IN BEIJING ENVISION AS FINITE A LIFESPAN FOR COMMUNISM AS FOR ITS RULING REVOLUTIONARY 9307280106 930728 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE SINGAPORE GOVERNMENT IS LAUNCHING A CHAIN OF DEPARTMENT STORES IN CHINA IN AN EFFORT TO PUSH THE ISLAND REPUBLIC'S RISKSHY BUSINESS PEOPLE OVERSEAS THE SINGAPORE MIN DIAN OR FAMOUS SHOP CHAIN WILL OPEN ITS FIRST OUTLET IN SHANGHAI IN NOVEMBER EIGHT ARE PLANNED BY THE END OF 1994 INCLUDING STORES IN SHENYANG BEIJING AND CANTON THE SINGAPORE TRADE DEVELOPMENT BOARD'S TDB HOLDINGS UNIT WILL MANAGE THE VENTURE AND SUBSIDIZE IT FOR THREE YEARS THE SHANGHAI STORE WILL HOUSE ABOUT 15 SINGAPORE MERCHANTS PICKED FROM AT LEAST 50 CANDIDATES SINGAPORE MIN DIAN WILL HANDLE ADVERTISING PROMOTION AND MERCHANDISING BY COMPETING WITH OTHER RETAILERS THE PROJECT GOES BEYOND TRADE AGENCIES' OVERSEAS SHOWCASES SINGAPORE ALSO WANTS TO USE THE PROJECT TO PROD SINGAPOREAN PRODUCERS TO SET UP PLANTS IN CHINA THE LONGTERM GOAL IS TO HELP SINGAPORE MERCHANTS ESTABLISH DISTRIBUTION NATIONWIDE IN CHINA CITING RISING INDUSTRIAL PRODUCTION AND A BOOMING CONSTRUCTION SECTOR POLAND PREDICTED ITS ECONOMY WILL GROW 4 THIS YEAR AND 5 NEXT YEAR GROSS DOMESTIC PRODUCT LAST YEAR INCREASED 2 THE FIRST GROWTH SINCE MARKETECONOMY MOVES WERE INITIATED IN 1990 INDUSTRIAL OUTPUT WHICH HAS BEEN GROWING STEADILY SINCE APRIL 1992 ROSE 75 IN THIS YEAR'S FIRST HALF AND IS PROJECTED TO INCREASE 65 ANNUALLY GROWTH IN CONSTRUCTION IS ESTIMATED AT 7 BUT AGRICULTURAL PRODUCTION COULD FALL 3 BECAUSE OF DECLINING LIVESTOCK OUTPUT AN ITALIAN TRUCKERS UNION CALLED OFF A STRIKE THAT HAD THREATENED TO EMPTY THE COUNTRY'S GROCERY SHELVES AND DRY UP GASOLINE PUMPS THE WALKOUT SCHEDULED FOR TWO WEEKS LASTED JUST TWO DAYS SHIPPING FEES WILL BE INCREASED 35 THIS YEAR AND 25 NEXT YEAR IN LINE WITH PREDICTED INFLATION RATES WHICH THE GOVERNMENT HAD VOWED NOT TO EXCEED IN ITS ECONOMIC RECOVERY STRATEGY THE UNION HAD SOUGHT A TOTAL BOOST OF ALMOST 20 THE ACCORD ALSO PROVIDES FOR 125 MILLION IN TAX CUTS LESS THAN THE TRUCKERS SOUGHT THOUSANDS OF ARGENTINE FARMERS PROTESTED IN BUENOS AIRES DEMANDING TAX RELIEF AND SUBSIDIZED LOANS THE DEMONSTRATION WAS CALLED BY THREE RURAL GROUPS THAT REPRESENT 700000 FARMERS HURT BY HUGE DEBTS AND THE LOWEST GLOBAL COMMODITY PRICES IN DECADES THE GOVERNMENT ASSAILED FARMERS AS PERENNIAL PROTESTERS BUT VOWED TO EASE FEDERAL TAXES ON FARMS FARMERS ARE A SMALL PART OF THE WORK FORCE PRODUCING 15 OF GROSS DOMESTIC PRODUCT BUT ARE A POWERFUL POLITICAL FORCE AS AGRICULTURAL GOODS ACCOUNT FOR 60 OF EXPORTS GROWTH OF SINGAPORE'S FACTORY EXPORTS IS STARTING TO SLACKEN AS DEMAND FOR DISK DRIVES AND OTHER PARTS FOR PERSONAL COMPUTERS IS SLIPPING SINGAPORE WHICH PRODUCES HALF OF THE WORLD'S DISK DRIVES RECORDED A SHARP DROP IN MANUFACTURERS' EXPORTS LAST YEAR BUT LATE IN THE YEAR A PC PRICE WAR HELPED BOOST DEMAND AND FUELED AN EXPORT REBOUND VIEWED AS UNSUSTAINABLE MANUFACTURING ACCOUNTS FOR ABOUT 25 OF SINGAPORE'S GROSS DOMESTIC PRODUCT LAST MONTH GROWTH IN NONOIL EXPORTS BRAKED TO 12 FROM AN AVERAGE OF 25 IN THE PRECEDING FOUR MONTHS THE RUSSIAN AIRLINE AEROFLOT ANTICIPATES PROBLEMS MEETING TOUGH US ANTINOISE REGULATIONS THAT TAKE EFFECT JAN 1 THE CARRIER OPERATES OLD AND EXTREMELY LOUD ILYUSHIN IL62 AIRLINERS TO SIX US DESTINATIONS THOSE PLANES WILL BE REPLACED WITH QUIETER ILYUSHIN IL96300 WIDEBODY JETS BUT AEROFLOT SAID THAT IT CAN'T RETIRE ALL THE OLD AIRLINERS THIS YEAR AND THAT THE US MIGHT GRANT IT AN EXEMPTION TO ALLOW USE OF SOME IL62S NEXT YEAR DESPITE APPEALS TO SPUR ITS ECONOMY JAPAN MUST PREVENT A RECURRENCE OF A SPECULATIVE SURGE IN STOCK AND PROPERTY PRICES LIKE THAT IN THE LATE 1980S THE ECONOMIC PLANNING AGENCY SAID IN ITS LATEST POLICY PAPER THE AGENCY URGED STEPS TO PREVENT ANOTHER SOCALLED BUBBLE ECONOMY FUELED BY INEXPENSIVE MONEY THE WARNING CAME AS JAPANESE OPPOSITION PARTIES BUSINESS LEADERS AND THE US ARE URGING THE GOVERNMENT TO STIMULATE THE AILING ECONOMY THROUGH SPENDING INCREASES AND INTERESTRATE CUTS THE US HAS PRESSED JAPAN TO BOOST DOMESTIC DEMAND AND CURB ITS HUGE TRADE SURPLUS THOUGH THE JAPANESE YEN HAS APPRECIATED 15 AGAINST THE DOLLAR THIS YEAR THE AGENCY SAID A STRONGER YEN WOULDN'T QUICKLY TAME THE SURPLUS FOR NOW THE GOVERNMENT ISN'T CONSIDERING NEW STEPS TO BOOST THE ECONOMY THE REPORT SAID JAPAN REMAINS COMMITTED TO PROMOTING GROWTH LED BY DOMESTIC DEMAND AND ELIMINATING MARKET BARRIERS THE EUROPEAN COMMUNITY POSTPONED UNTIL AUG 14 THE DEADLINE FOR ITALY'S NEW PROPOSAL TO RESTRUCTURE THE UNPROFITABLE STATEOWNED STEELMAKER ILVA SPA UNDER THE TRADE BLOC'S PLAN TO CUT EXCESS PRODUCTION CAPACITY SOUTH CHINA'S BOOMING GUANGDONG PROVINCE IMPLEMENTED HEALTH REGULATIONS RESTRICTING EDUCATION JOBS MARRIAGES AND HOME LIVES OF PEOPLE INFECTED WITH THE AIDS VIRUS THE TA KUNG PAO NEWSPAPER SAID POLAND DECLARED A PRIORITY ITS PLAN TO BUILD 1215 MILES OF TOLL HIGHWAYS NATIONWIDE OVER THE NEXT 15 YEARS AT AN ESTIMATED COST OF 476 BILLION 9307280105 930728 INTERNATIONAL EUROTUNNEL SETTLES LENGTHY DISPUTE WITH CONTRACTORS SPECIAL TO THE WALL STREET JOURNAL PARIS EUROTUNNEL AND ITS CONSORTIUM OF CONTRACTORS ENDED A PROTRACTED DISPUTE WITH EUROTUNNEL SET TO TAKE OVER WORK ON THE TUNNEL CONNECTING ENGLAND AND FRANCE ON DEC 10 SHARES IN EUROTUNNEL ROSE ON THE NEWS IN PARIS THEY JUMPED 23 FRANCS OR 63 TO CLOSE AT 386 FRANCS 655 IN LONDON EUROTUNNEL STOCK JUMPED 27 PENCE OR 66 TO 434 PENCE 651 WRANGLING OVER COSTOVERRUNS HAS DELAYED THE TUNNEL'S OPENING SEVERAL TIMES BUT EUROTUNNEL HAS NOW CONFIRMED AN INAUGURATION DATE OF MAY 6 1994 UNDER THE PACT ANNOUNCED JOINTLY BY THE TWO SIDES THE CONSORTIUM OF CONTRACTORS TRANS MANCHE LINK WOULD RECEIVE NO PAYMENTS FOR EXTRA CLAIMS IT WAS SEEKING EUROTUNNEL HOWEVER WOULD ADVANCE UP TO 235 MILLION 353 MILLION TO TML TO COVER A PROGRAM OF SPECIFIED TESTS THE ANNOUNCEMENT ALSO SAID A STANDBY FACILITY OF 120 MILLION IS BEING ARRANGED FOR EUROTUNNEL TO COVER THE PERIOD AROUND THE TIME OF THE TUNNEL'S OPENING EUROTUNNEL CHAIRMAN ANDRE BENARD SAID THAT A KEY ELEMENT IN THE TWO PARTIES' ABILITY TO REACH AN AGREEMENT WAS A DECISION TO SEPARATE THE QUESTION OF TML'S COSTOVERRUN CLAIMS INDEED THE ACCORD DIDN'T SETTLE THE QUESTION OF WHO WILL ABSORB THE NINE BILLION FRANCS 153 BILLION OF COSTOVERRUNS THAT WILL BE HANDLED IN SEPARATE NEGOTIATIONS MR BENARD SAID A PHASEDIN OPENING IS NOW POSSIBLE HE SAID HE EXPECTS FREIGHT SHUTTLE SERVICE TO BEGIN IN MARCH WITH PASSENGER SHUTTLE SERVICE STARTING IN APRIL HE SEES FULL TRAIN SERVICE BEGINNING IN MAY BUILDING UP TO A REGULARSERVICE SCHEDULE BY THE END OF NEXT SUMMER EUROTUNNEL SAID IT EXPECTS TO SEE RECEIPTS TOTALING 230 MILLION NEXT YEAR 9307280104 930728 ABREAST OF THE MARKET INDUSTRIALS DECLINE 224 AS LOSSES AT STEELMAKERS OUTPACE IBM GAIN BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES FELL AS STEELMAKER'S SHARES BUCKLED UNDER THE WEIGHT OF AN UNFAVORABLE TRADE COMMISSION RULING ALREADY WEAKENED BY PROFITTAKING YESTERDAY MORNING THE MARKET TURNED DECIDEDLY LOWER ON THE MIDDAY NEWS THAT THE INTERNATIONAL TRADE COMMISSION WOULDN'T BACK CHARGES THAT US STEEL PRODUCERS HAVE BEEN INJURED BY DUMPING FROM SOME FOREIGN PRODUCERS USXUS STEEL SLUMPED 4 OR 13 TO 32 INLAND STEEL PLUMMETED 3 1/4 OR 11 TO 26 3/8 AND BETHLEHEM STEEL TUMBLED 3 7/8 OR 207 TO 14 7/8 ALL THREE ON HEAVY VOLUME THE DROP IN BETHLEHEM STEEL A DOW JONES INDUSTRIAL AVERAGE COMPONENT OUTWEIGHED A RALLY IN INTERNATIONAL BUSINESS MACHINES THE INDUSTRIAL AVERAGE CLOSED WITH A LOSS OF 224 TO 356546 BROADER INDEXES ALSO DECLINED DECLINING BIG BOARD ISSUES OUTNUMBERED AD VANCERS 1054 TO 855 VOLUME WAS ACTIVE AT 252524910 SHARES COMPARED WITH 222578720 MONDAY IBM JUMPED 3 1/4 OR 77 TO 45 5/8 EVEN THOUGH THE COMPUTER MAKER POSTED A GAPING SECONDQUARTER LOSS AND SLASHED ITS DIVIDEND FOR A SECOND TIME THIS YEAR EXCLUDING THE CHARGE IBM'S RESULTS WERE BETTER THAN EXPECTED THE STANDARD & POOR'S 500STOCK INDEX LOST 085 OR 019 TO 44824 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 034 OR 014 TO 24834 AND THE DOW JONES EQUITY MARKET INDEX DECLINED 087 OR 020 TO 42577 BRADLEY TURNER MARKET STRATEGIST AT MCDONALD & CO SECURITIES SAID YESTERDAY'S SELLING FITS THE MARKET'S PATTERN OF LATE IN RECENT MONTHS EACH TIME THE DOW JONES INDUSTRIAL AVERAGE HAS SET A RECORD AS IT DID MONDAY PROFITTAKING HAS QUICKLY FOLLOWED I SEE YESTERDAY AS SYMPTOMATIC OF THE MARKET WE ARE IN WHICH IS ONE WHERE ANY CONVINCING AND SUSTAINABLE MOVE FROM THESE LEVELS IS REALLY DEPENDENT UPON AN OVERALL IMPROVEMENT IN EARNINGS AND DIVIDENDS MR TURNER SAID SO FAR THIS QUARTER'S RESULTS HAVE BEEN MIXED NOT ENOUGH TO TRIGGER WIDESPREAD OPTIMISM BUT GENE JAY SEAGLE DIRECTOR OF TECHNICAL RESEARCH AT GRUNTAL & CO SAID A SOLID MARKET ADVANCE MAY BE APPROACHING I THINK THIS MARKET WILL GAIN MOMENTUM HE SAID BUOYED BY NEW SIGNS OF IMPROVEMENT IN THE ECONOMY AND BUYING BY MUTUAL FUND PORTFOLIO MANAGERS HE SEES THE INDUSTRIAL AVERAGE AT 3750 THIS FALL YESTERDAY'S ECONOMIC NEWS THOUGH OFFERED MIXED DIRECTION TO INVESTORS THE CONFERENCE BOARD A TRADE GROUP SAID ITS INDEX OF CONSUMER CONFIDENCE FELL TO 577 THIS MONTH FROM A REVISED 586 IN JUNE MEANWHILE LYNCH JONES RYAN'S JOHNSON REDBOOK SAID RETAIL SALES ROSE 24 IN THE FIRST THREE WEEKS OF JULY FROM JUNE RETAILER'S SHARES FELL DESPITE THAT NEWS SEARS ROEBUCK & CO LOST 1 TO 49 5/8 DAYTON HUDSON SLIPPED 1 5/8 TO 65 3/8 AND GAP SLIPPED 3/8 TO 29 1/8 IBM TOPPED THE BIG BOARD MOST ACTIVE LIST WITH VOLUME OF 63 MILLION SHARES THE ARMONK NY CONCERN REPORTED A LOSS OF 1410 A SHARE FOR THE SECOND QUARTER AFTER A MASSIVE RESTRUCTURING CHARGE IN ADDITION THE COMPUTER MAKER SLICED ITS QUARTERLY DIVIDEND 54 TO 25 CENTS A SHARE THE PAYOUT WAS TRIMMED 55 IN JANUARY BIG BLUE'S SHARES HAD BEEN IN RETREAT FOR ALMOST TWO WEEKS IN ANTICIPATION OF THE BAD NEWS MEANWHILE ITS LOSS FROM OPERATIONS EXCLUDING THE CHARGE WAS EIGHT CENTS A SHARE BETTER THAN THE 20 CENT TO 30 CENT LOSS THAT ANALYSTS HAD PREDICTED A YEAR AGO NET WAS 129 A SHARE ELSEWHERE CRAY RESEARCH PLUMMETED 4 1/4 TO 23 AFTER THE EAGAN MINN COMPUTER MAKER POSTED SHARPLY LOWERTHANEXPECTED SECONDQUARTER EARNINGS IT HAD A PROFIT OF 24 CENTS A SHARE UP FROM FIVE CENTS LAST YEAR BUT WELL BELOW THE 50CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM MEDTRONIC LOST 1 1/4 TO 60 LEHMAN BROTHERS REMOVED THE MINNEAPOLIS MEDICAL DEVICE MAKER'S STOCK FROM A RECOMMENDED LIST SEPARATELY ELI LILLY & CO SAID FOOD AND DRUG ADMINISTRATION APPROVAL IS NEAR FOR A PRODUCT IT DEVELOPED FOR USE IN CONJUNCTION WITH IMPLANTABLE DEFIBRILLATORS WHICH ARE USED TO CORRECT ABNORMALLY RAPID HEARTBEATS MEDTRONIC IS DEVELOPING A COMPETING DEVICE LILLY WAS UNCHANGED AT 48 1/4 STRATUS COMPUTER TUMBLED 5 1/2 OR 188 TO 23 3/4 AFTER THE MARLBOROUGH MASS COMPANY REPORTED SECONDQUARTER EARNINGS FELL TO 57 CENTS A SHARE FROM 58 CENTS A YEAR AGO THERE WERE FEWER SHARES OUTSTANDING A YEAR AGO THE COMPANY ALSO SAID ITS SECONDHALF EARNINGS GROWTH WILL BE SLIGHTLY LESS THAN IT HAD EXPECTED TENNECO SHED 2 1/2 TO 48 EVEN THOUGH THE HOUSTON NATURAL GAS CONCERN REPORTED A PROFIT FROM OPERATIONS OF 63 CENTS A SHARE ABOVE LAST YEAR'S 32 CENTS LORAL CORP JUMPED 2 3/4 TO 62 1/8 THE NEW YORK WEAPONS SYSTEMS MAKER REPORTED NET INCOME OF 97 CENTS IN THE FIRST QUARTER ENDED JUNE 30 UP FROM PROFIT FROM OPERATIONS OF 71 CENTS A YEAR AGO SEPARATELY IT DECLARED A 2FOR1 STOCK SPLIT AND INCREASED ITS QUARTERLY DIVIDEND THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 101 OR 023 TO 43477 THERE WERE 288 DECLINERS AND 257 GAINERS 9307280103 930728 BUSINESS BRIEF NL INDUSTRIES INC CHEMICAL COMPANY'S LOSS WIDENED IN SECOND QUARTER LOSSES AT NL INDUSTRIES INC CONTINUED TO WIDEN IN THE SECOND QUARTER AS LOW PRICES PLAGUED THE CHEMICAL CONCERN CONTROLLED BY FINANCIER HAROLD SIMMONS THE HOUSTON COMPANY SAID ITS LOSS WIDENED TO 28 MILLION OR 55 CENTS A SHARE FROM 85 MILLION OR 17 CENTS A SHARE A YEAR EARLIER SALES FELL 6 TO 2214 MILLION FROM 2356 MILLION IT WAS THE SEVENTH CONSECUTIVE QUARTER THAT THE COMPANY POSTED LOSSES IN THE FIRST HALF THE LOSS WAS 415 MILLION OR 82 CENTS A SHARE COMPARED WITH 478 MILLION OR 94 CENTS A SHARE A YEAR EARLIER THE 1992 RESULTS INCLUDED A CHARGE OF 318 MILLION OR 62 CENTS A SHARE FOR A CHANGE IN ACCOUNTING PRINCIPALS OPERATING PROFIT AT NL'S KRONOS INC PAINT PIGMENT MAKING SUBSIDIARY PLUNGED TO 76 MILLION FROM 187 MILLION THE COMPANY SAID CONTINUED DECLINES IN THE AVERAGE SELLING PRICES AND PRODUCTION CURTAILMENTS TO REDUCE INVENTORY CONTRIBUTED TO THE WOES 9307280102 930728 INGERSOLL TO BUY GERMAN PLANT WOODCLIFF LAKE NJ INGERSOLLRAND CO SAID IT AGREED TO BUY A BEARING PLANT FROM GERMANY'S FAG KUGELFISCHER GEORG SCHAEFER KGAA TERMS WEREN'T DISCLOSED UNDER THE AGREEMENT THE KUNSEBECK GERMANY PLANT WILL BECOME PART OF TORRINGTON CO INGERSOLL'S BEARINGS UNIT THE PLANT EMPLOYS 1200 AND PRODUCES NEEDLE BEARINGS AND CYLINDRICAL BEARINGS PRIMARILY TO METRIC STANDARDS FOR A GERMAN AND WESTERN EUROPEAN MARKET INGERSOLLRAND MANUFACTURES INDUSTRIAL MACHINERY AND CONSTRUCTION EQUIPMENT THROUGH ITS TORRINGTON UNIT IT OPERATES PLANTS IN ENGLAND AND SPAIN AND A DISTRIBUTION CENTER IN WURSELEN GERMANY AND HAS JOINTVENTURE OPERATIONS IN FRANCE AND ITALY FAG KUGELFISCHER IN SCHWEINFURT GERMANY IS A MAKER OF BEARINGS AND INDUSTRIAL SYSTEMS 9307280101 930728 NO CREDIT FOR CLINTON BY ALAN REYNOLDS THE CLINTON ADMINISTRATION KEEPS BRAGGING THAT LOW LONGTERM INTEREST RATES ARE THE MEASURE OF THE SUCCESS OF ITS ECONOMIC POLICY SPEAKING AT A CHICAGO JOBS CONFERENCE THIS WEEK THE PRESIDENT ONCE AGAIN TRIED OUT THE ARGUMENT THAT THE PROSPECT OF LOWER DEFICITS HAS ALREADY CUT LONGTERM INTEREST RATES AND THUS BOOSTED EMPLOYMENT LIKE SO MANY STEPFORD WIVES ADMINISTRATION MEMBERS ECHO THE THOUGHT THAT THE HIGHER TAX RATES THEY PROPOSE WILL REDUCE THE DEFICIT THIS IS AFTER ALL ONE OF THEIR FEW DEFENSES SINCE EVEN THE ADMINISTRATION'S OWN MEMBERS CANNOT PLAUSIBLY DENY OVERWHELMING EVIDENCE THAT HIGHER MARGINAL TAX RATES WILL DAMAGE GROWTH RECENT REMARKS FROM COUNCIL OF ECONOMIC ADVISERS CHAIRMAN LAURA TYSON ARE TYPICAL SHE SAID ON TV LAST WEEK THAT THERE IS WIDESPREAD AGREEMENT THAT OUR PLAN CAN BE CREDITED WITH THESE LOWER LONGTERM INTEREST RATES A RECENT POLL OF ECONOMISTS FOUND 27 DID GO ALONG WITH THAT CLAIM THOUGH THAT SHARE FALLS A BIT SHORT OF WIDESPREAD AGREEMENT MS TYSON CLAIMS THE PLAN WOULD REDUCE THE DRAIN ON THE NATION'S SAVINGS AND THAT THIS MEANS LOWER INTEREST RATES FOR PRIVATE INVESTMENT THE ADMINISTRATION THUS CREDITS A PLAN THAT HAS NOT BEEN ENACTED WITH CREATING 765000 JOBS SO FAR THIS YEAR AND CLAIMS IT WOULD ADD ANOTHER EIGHT MILLION JOBS IN THE NEXT FEW YEARS BUT THE MUCH PUBLICIZED EIGHTMILLION FIGURE IS SIMPLY AN ASSUMPTION SIMILAR TO THE NINE MILLION NUMBER THE CONGRESSIONAL BUDGET OFFICE ASSUMED IN JANUARY IN A TELEVISED CONFERENCE ALICIA MUNNELL OF THE TREASURY DEPARTMENT EXPLAINED THAT THE EIGHT MILLION FIGURE WAS BASED ON EXTRAPOLATING THE TRENDS OF THE 1980S AND ASSUMED SOME IMPROVEMENT THE MAIN PROBLEM WITH THE ARGUMENT THAT THE PROSPECT OF HIGHER TAX RATES IS WHAT REDUCED LONGTERM INTEREST RATES IS THAT IT CANNOT POSSIBLY BE TRUE EVEN IF WE SWALLOW THE ROSY ESTIMATES OF REVENUE FROM NEW TAXES AND ALSO BELIEVE THAT NEW HEALTH AND INFRASTRUCTURE SCHEMES WILL NOT FAR EXCEED NEW REVENUES SMALLER DEFICITS CANNOT REDUCE US BOND YIELDS WHY NOT BECAUSE THESE DAYS BOND YIELDS ARE NOT GUIDED BY DOMESTIC ECONOMIC CONDITIONS ALONE THEY ARE SET ON GLOBAL MARKETS WITH TIGHTLY INTEGRATED WORLD FINANCIAL MARKETS THE RETURN ON US BONDS MUST BE COMPETITIVE WITH THAT OF FOREIGN BONDS OF SIMILAR QUALITY SUCH AS THOSE OF JAPAN AND GERMANY IF LOWER DEFICITS ACTUALLY PUSHED THE YIELD ON US BONDS BELOW THOSE OF OTHER COUNTRIES OTHER THINGS BEING EQUAL THEN WORLD INVESTORS WOULD SELL THE LOWCOUPON US BONDS AND BUY HIGHERCOUPON FOREIGN BONDS BUT THAT PROCESS WOULD BID UP THE PRICES OF FOREIGN BONDS AND LOWER THOSE OF US BONDS THUS BRINGING THEIR YIELDS CLOSER TOGETHER INTEREST RATES ON LONGTERM BONDS HAVE FALLEN IN ALL MAJOR COUNTRIES FOR MORE THAN A YEAR COULD ANYONE REALLY BELIEVE THAT THIS IS BECAUSE OF THE CLINTON PLAN WORLD BOND YIELDS DO DIFFER OF COURSE BUT THAT IS MAINLY BECAUSE OF DIFFERENT EXPECTATIONS ABOUT FUTURE EXCHANGE RATES AND ABOUT WHAT CENTRAL BANKS IN THE MAJOR COUNTRIES ARE LIKELY TO DO WITH SHORTTERM INTEREST RATES THE INVESTOR'S RETURN ON BONDS DEPENDS NOT SIMPLY ON HOW HIGH THE INTEREST RATE IS BUT ALSO ON CAPITAL GAINS IF THE NATION'S INTEREST RATES FALL AND CAPITAL LOSSES RELATIVE TO OTHER COUNTRIES IF THE EXCHANGE RATE FALLS THE EXPECTATION THAT CENTRAL BANK INTEREST RATES ARE COMING DOWN IN ANY PARTICULAR COUNTRY WILL USUALLY MAKE THAT COUNTRY'S BONDS ATTRACTIVE BECAUSE THEY ARE LIKELY TO RISE IN PRICE AND THUS PROVIDE A CAPITAL GAIN BUT THAT SAME MONETARY EASING IS ALSO APT TO REDUCE THE COUNTRY'S EXCHANGE RATE WHICH MEANS THE TOTAL RETURN MAY NONETHELESS FALL IN TERMS OF A STRONGER CURRENCY THE GERMAN BUNDESBANK AND THE BANK OF JAPAN HAVE BEEN REDUCING SHORTTERM INTEREST RATES FOR SOME TIME AND ARE WIDELY EXPECTED TO KEEP DOING SO THIS REDUCTION IN FOREIGN INTEREST RATES IS NOT BECAUSE THE BUDGET DEFICITS OF GERMANY AND JAPAN ARE FALLING BUT BECAUSE THEIR ECONOMIES ARE FALLING SUCH REDUCTIONS OF SHORTTERM INTEREST RATES HAVE PUSHED THE PRICE OF BONDS UP THROUGHOUT THE INDUSTRIAL WORLD CREATING CAPITAL GAINS THE US BOND MARKET HAS USUALLY RALLIED WHENEVER THE BUNDESBANK CUT INTEREST RATES FOR EXAMPLE THOUGH DEEP CUTS IN WORLDWIDE SHORTTERM RATES HAVE ALSO BEGUN TO PROVOKE SPECULATION IN GOLD AND OTHER TANGIBLE ASSETS THAT COMPETE WITH BONDS IN THE US BY CONTRAST THE FEDERAL RESERVE HAS MADE NOISES ABOUT THE NEED TO PUSH SHORTTERM RATES ABOVE THE INFLATION RATE SOONER OR LATER EACH SUCH STATEMENT FROM FED OFFICIALS HAS RESULTED IN AN INSTANT INCREASE IN LONGTERM US INTEREST RATES REGARDLESS OF WHAT WAS OR WAS NOT BEING DONE ABOUT THE DEFICIT BUT THE PERCEPTION THAT THE FED MAY TIGHTEN WHILE EUROPE AND JAPAN EASE HAS ALSO MADE IT MORE LIKELY THAT THE DOLLAR WILL GO UP THAN DOWN THAT MAKES HOLDING FOREIGN BONDS MORE RISKY AND SO DOES THE ANXIETY ABOUT JAPANESE POLITICAL TURMOIL AND THE FRENCH FRANC AS A RESULT THE US BOND MARKET HAS ACTUALLY PERFORMED A BIT BETTER THAN THE BOND MARKETS OF GERMANY AND JAPAN SINCE MARCH DUE TO GREATER RISK OF EXCHANGERATE LOSSES ON FOREIGN BONDS THIS IS SIMPLY THE OPPOSITE OF WHAT HAPPENED IN FEBRUARY WHEN ADMINISTRATION EFFORTS TO TALK THE DOLLAR DOWN BRIEFLY PUSHED THE YIELD ON YEN BONDS WELL BELOW 4 IN 1989 AND 1990 SEVERAL NATIONS TESTED THE ADMINISTRATION'S PROVINCIAL THEORY THAT A NATION'S BOND YIELDS DEPEND ON ITS NATIONAL SAVINGS RATE WHICH IN TURN DEPENDS ON BUDGET DEFICITS NORWAY BRITAIN SWEDEN AND AUSTRALIA ALL SLASHED THEIR BUDGET DEFICITS AFTER 1985 ACHIEVING SURPLUSES OR TRIVIAL DEFICITS BY 1990 SO WHAT HAPPENED TO INTEREST RATES THE 1990 GOVERNMENT BOND YIELD WAS 107 IN NORWAY 111 IN BRITAIN 131 IN SWEDEN AND 132 IN AUSTRALIA AND WHAT HAPPENED TO SAVINGS RATES BETWEEN 1985 AND 1990 SAVINGS AS A PERCENT OF GROSS NATIONAL PRODUCT INSTEAD FELL TO 241 FROM 296 IN NORWAY TO 156 FROM 178 IN BRITAIN TO 171 FROM 172 IN SWEDEN AND TO 177 FROM 187 IN AUSTRALIA IN OTHER WORDS THE PERSONAL AND BUSINESS SAVINGS RATE FELL BY MORE THAN ENOUGH TO COMPLETELY OFFSET THE DROP IN GOVERNMENT BORROWING WHEN DEFICIT REDUCTION IS ACCOMPLISHED BY HIGHER TAX RATES THIS EFFECT IS PARTICULARLY PRONOUNCED IT IS NOT SIMPLY THAT HIGHER TAX RATES REDUCE INCENTIVES TO BOTH EARN AND SAVE BUT THAT THEY ALSO REDUCE THE AMOUNT OF AFTERTAX INCOME AVAILABLE TO BE SAVED WE CAN'T VERY WELL SAVE MONEY THAT WE'VE SENT TO THE IRS TAXES ARE NOT SAVINGS THE ADMINISTRATION'S AMBITIOUS HEALTH AND INVESTMENT SPENDING COMBINED WITH PHONY STATIC ESTIMATES OF THE REVENUE FROM HIGHER TAX RATES IS QUITE UNLIKELY TO REDUCE THE US DEFICIT BUT EVEN IF IT DID THAT WOULD BE NO MORE EFFECTIVE IN LOWERING INTEREST RATES THAN WERE THE BUDGET SURPLUSES OF BRITAIN AND SWEDEN AND EVEN IF LONGTERM INTEREST RATES COULD INSTEAD BE HELD DOWN BY A COOPERATIVE EASY FED POLICY AS BOTH WHITE HOUSE AND CONGRESSIONAL BUDGET OFFICE DOCUMENTS SUGGEST THAT STILL WOULD NOT OFFSET THE DAMAGE OF HIGHER MARGINAL TAX RATES LOW INTEREST RATES ARE PRIMARILY EFFECTIVE IN STIMULATING THE GROWTH OF SPENDING OR DEMAND HIGHER MARGINAL TAX RATES ON ADDITIONS TO OUTPUT AND INCOME HAVE ADVERSE SUPPLYSIDE EFFECTS ON LABOR FORCE PARTICIPATION THE JOBS THE PRESIDENT WAS SUPPOSED TO BE SAVING OR CREATING IN CHICAGO ENTREPRENEURIAL INVESTMENT AND EDUCATION PLANS TO STIMULATE DEMAND WHILE DISCOURAGING SUPPLY IS A WELLTESTED RECIPE FOR STAGFLATION MR REYNOLDS IS DIRECTOR OF ECONOMIC RESEARCH AT THE HUDSON INSTITUTE 9307280100 930728 MARKETING & MEDIA TRAVEL & LEISURE APPOINTS EDITOR NEW YORK AMERICAN EXPRESS PUBLISHING CO SAID IT NAMED NANCY NOVOGROD FORMER EDITOR AT CONDE NAST'S HG MAGAZINE TO BE EDITOR IN CHIEF OF ITS TRAVEL & LEISURE MAGAZINE IT IS RARE THAT AN EDITOR OF NANCY NOVOGROD'S TALENT AND VISION BECOMES AVAILABLE DANIEL BREWSTER JR PRESIDENT AND CHIEF EXECUTIVE OF AMERICAN EXPRESS PUBLISHING AN AMERICAN EXPRESS CO UNIT SAID IN A STATEMENT 9307280099 930728 LETTERS TO THE EDITOR WHY FEES ARE HIGHER FOR FEDERAL PAP TESTS DR EUGENE P CASSIDY OF MARSHALLTOWN IOWA WROTE IN HIS JULY 7 LETTER THAT THE ARMED FORCES INSTITUTE OF PATHOLOGY A RESPECTED AGENCY OF THE US GOVERNMENT QUOTES A FEE OF 40 FOR THE PAP TEST WHILE MEDICARE ONLY REIMBURSES 789 THE AFIP IS A TRISERVICE DEPARTMENT OF DEFENSE PATHOLOGY REFERENCE FACILITY PROVIDING CONSULTATIONS TO FEDERAL MEDICAL FACILITIES AND CIVILIAN CONTRIBUTORS THESE CONSULTATIONS ARE SECOND OPINIONS ON DIFFICULT CASES SUBMITTED TO AND ACCESSIONED BY THE AFIP FOR CONSULTATION THE BULK OF THE CYTOLOGY SPECIMENS RECEIVED BY THE AFIP ARE NONGYNECOLOGICAL FINE NEEDLE ASPIRATIONS CELL BLOCKS ETC THE 40 PRICE FOR PAP SMEARS SUBMITTED TO THE AFIP FOR REVIEW ARE CASES THAT HAVE ALREADY BEEN SCREENED CLASSIFIED AS ABNORMAL HAVE BEEN REVIEWED BY A PATHOLOGIST AND SUBSEQUENTLY SENT TO AFIP FOR A SECOND OPINION ON THE CASE THIS SITUATION IS CONSIDERABLY DIFFERENT FROM THE UNPROCESSED GYNECOLOGICAL PAP SMEARS THAT ARE FIRST SCREENED THEN REVIEWED IN THE TYPICAL LABORATORY SETTING 9307280097 930728 WHO'S NEWS CABLE & WIRELESS REORGANIZES IN US APPOINTS EXECUTIVES NEW YORK CABLE & WIRELESS PLC REORGANIZED ITS US BUSINESSES AND NAMED TWO EXECUTIVES TO HEAD THE OPERATION CABLE & WIRELESS INC BASED IN VIENNA VA C ALAN PEYSER 59 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THE UNIT OF THE BRITISH COMPANY AND GABE BATTISTA 48 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER THE TWO MEN WILL ASSUME THEIR NEW DUTIES SEPT 1 JOHN DAVENPORT 57 WILL RETIRE AS CHIEF EXECUTIVE OF CABLE & WIRELESS NORTH AMERICA LATER THIS FALL MR BATTISTA WAS PREVIOUSLY CHIEF OPERATING OFFICER OF CABLE & WIRELESS COMMUNICATIONS WHICH SERVED SMALL AND MEDIUMSIZED COMPANIES WHILE MR PEYSER WAS ITS FOUNDER AND PRESIDENT THE NEW COMPANY WILL CONSOLIDATE THOSE OPERATIONS WITH THE LARGE CARRIER SERVICE HANDLED BY CABLE & WIRELESS AMERICAS THE TWO DIVISIONS HAD ABOUT 806 MILLION IN REVENUE LAST YEAR MR PEYSER SAID THE MAIN CONSIDERATION IN CONSOLIDATING THE TWO DIVISIONS WAS IMPROVING QUALITY THE COST BENEFITS WILL BE SMALL THE NEW COMPANY WILL FOCUS ON CUSTOMER SERVICE AND THE DEVELOPING ENHANCED SERVICE PACKAGES AND FEATURES SUCH AS ELECTRONIC BILLING WE WANT TO BE NO 1 IN QUALITY AND SERVICE MR PEYSER SAID I THINK THAT'S WHAT THEY WANT FOR US TO LISTEN TO THEM 9307280096 930728 LETTERS TO THE EDITOR DUTY TO PROSECUTE ENVIRONMENTAL CRIME YOUR EDITORIALS ARE ALWAYS A GREAT SOURCE OF IMAGINATION AND HUMOR AND YOUR JULY 8 EDITORIAL GENERAL DINGELL ON OUR OVERSIGHT AND INVESTIGATIONS SUBCOMMITTEE'S INQUIRY INTO THE PROSECUTION OF ENVIRONMENTAL CRIMES DID NOT DISAPPOINT READERS WOULD NOT HAVE LEARNED FROM THE EDITORIAL THAT FEDERAL AND STATE LAW ENFORCEMENT PERSONNEL TESTIFIED UNDER OATH ABOUT SERIOUS PROBLEMS WITHIN THE ENVIRONMENTAL CRIMES ENFORCEMENT PROGRAM AT THE DEPARTMENT OF JUSTICE AT A SEPTEMBER 1992 HEARING SEVERAL OF THE NATION'S MOST SENIOR ENVIRONMENTAL PROSECUTORS AND DEPARTING US ATTORNEYS APPOINTED UNDER THE PREVIOUS REPUBLICAN ADMINISTRATION HAVE WRITTEN THE ATTORNEY GENERAL AND OTHER OFFICIALS EXPRESSING CONCERN ABOUT CURIOUS 11THHOUR RESTRICTIONS ADOPTED BY THE PAST ADMINISTRATION IF ANYONE IS ASSAULTING THE CONCEPT OF PROSECUTORIAL DISCRETION IT WOULD BE THE PEOPLE WITHIN THE JUSTICE DEPARTMENT WHO ARE UNDERMINING THE DISCRETION OF THEIR PROSECUTORS IN THE FIELD OUR SUBCOMMITTEE'S SEPT 10 1992 HEARING REVEALED AMONG OTHER THINGS THAT IN ONE MATTER THE ATTORNEY GENERAL OF WASHINGTON STATE A REPUBLICAN WROTE TO THENATTORNEY GENERAL BARR PROTESTING THE JUSTICE DEPARTMENT'S DECISION TO ALLOW AN ENVIRONMENTAL OFFENDER WHO HAD OFFERED TO PLEAD GUILTY TO A FELONY AND PAY A LARGE FINE TO INSTEAD PLEAD TO A MISDEMEANOR AND PAY 15000 IN ANOTHER CASE JUSTICE DROPPED ALL CHARGES AFTER A COMPANY HAD OFFERED TO PLEAD GUILTY TO FOUR FELONIES IN THE WETLANDS CASE DESCRIBED SO MISLEADINGLY IN YOUR EDITORIAL MARINUS VAN LEUZEN IGNORED REPEATED WARNINGS THREW A CEASEANDDESIST ORDER BACK AT FEDERAL OFFICIALS WITH THE ASSERTION THAT HE REFUSED TO COMPLY FALSELY INFORMED CONTRACTORS THAT HE HAD OBTAINED THE NECESSARY PERMITS BOASTED TO ASSOCIATES ABOUT HOW HE PLANNED TO CONCEAL EVIDENCE AND BRAGGED TO FEDERAL AGENTS THAT THE JUSTICE DEPARTMENT DIDN'T HAVE THE GUTS TO PROSECUTE HIM HE WAS VIDEOTAPED PERSONALLY DIRECTING ILLEGAL ACTIVITY AT THE CONCLUSION OF THE SUCCESSFUL CIVIL CASE BROUGHT AT THE INSISTENCE OF THE EPA THE FEDERAL JUDGE IN GALVESTON TEXAS STATED THAT MR VAN LEUZEN WAS DECEITFUL THAT HIS ILLEGAL ACTS WERE WILLFUL AND BRAZEN AND THAT THE FACTS REFLECTED VAN LEUZEN'S UTTER LACK OF EQUITIES IN THIS CASE THIS MATTER INVOLVED ONLY A SINGLE DEFENDANT THAT IT HAD TO BE RESOLVED WITHIN THE JUSTICE DEPARTMENT AT THE LEVEL OF ASSISTANT ATTORNEY GENERAL RAISES TROUBLING QUESTIONS ABOUT MANAGEMENT OF THE ENVIRONMENTAL CRIMES ENFORCEMENT PROGRAM IN THE INTEREST OF FULL DISCLOSURE I MUST NOTE THAT ON ONE POINT I MAY AGREE SOMEWHAT WITH THE JOURNAL I TOO HAVE CONCERNS ABOUT THE USE OF CRIMINAL PROSECUTIONS IN ENVIRONMENTAL CASES LIKE IT OR NOT THAT IS THE LAW AND THE LAW MUST BE UPHELD UNLESS OR UNTIL IT IS CHANGED FURTHER AS LONG AS IT IS THE LAW IT SHOULD BE APPLIED EQUALLY HONEST COMPANIES AND INDIVIDUALS SHOULD NOT BE PENALIZED WHEN DISHONEST RIVALS ARE ALLOWED TO SKIRT THE LAW WITH IMPUNITY THE SUBCOMMITTEE HAS A CONSTITUTIONAL RESPONSIBILITY TO ASK THOSE AT THE DEPARTMENT WITH PERSONAL KNOWLEDGE OF THESE CLOSED CASES AND RELATED MATTERS ABOUT THE FACTS UNDERLYING THE ALLEGATIONS ON A FULLY BIPARTISAN BASIS IT WILL CONTINUE TO DO SO AS ALWAYS IT IS AN HONOR TO BE DENOUNCED BY THE ECONOMIC ROYALISTS OF THE JOURNAL EDITORIAL PAGE I HOPE THAT MY CONDUCT WILL CONTINUE TO MERIT THIS KIND OF TREATMENT 9307280095 930728 CIRCLE K CORP LEAVES CHAPTER 11 COMPLETES SALE AND NAMES CEO PHOENIX CIRCLE K CORP SAID IT EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS AND COMPLETED ITS SALE TO CK ACQUISITIONS CORP A UNIT OF PRIVATELY HELD INVESTCORP INTERNATIONAL INC FOR 3995 MILLION IN CASH AS WELL AS THE ASSUMPTION OF CERTAIN LIABILITIES CIRCLE K ALSO SAID ITS PRESIDENT JOHN ANTIOCO 43 YEARS OLD WILL ASSUME THE ADDITIONAL ROLE OF CHIEF EXECUTIVE OFFICER HE SUCCEEDS BART A BROWN 61 WHO WILL REMAIN CHAIRMAN MR BROWN SAID THAT WITH THE CONVENIENCESTORE CHAIN'S EMERGENCE FROM BANKRUPTCY PROCEEDINGS HE HAD DONE THE JOB HE CAME TO DO THE US NINTH CIRCUIT COURT OF APPEALS CLEARED THE WAY FOR THE COMPANY'S REORGANIZATION AND SALE LATE LAST WEEK WHEN IT REJECTED A DELAY REQUESTED BY BONDHOLDERS WHO RECEIVED NOTHING UNDER THE PLAN FOR THEIR 525 MILLION IN CLAIMS CIRCLE K SAID ITS BANKS AND LENDERS RECEIVED ABOUT 210 MILLION TO SETTLE THEIR 350 MILLION IN SENIOR CLAIMS SENIOR NOTEHOLDERS RECEIVED ABOUT 1325 MILLION FOR THEIR 190 MILLION IN CLAIMS AND UNSECURED CREDITORS RECEIVED ABOUT 57 MILLION FOR THEIR 225 MILLION IN CLAIMS CIRCLE K HAD OPERATED UNDER BANKRUPTCYCOURT PROTECTION SINCE MAY 15 1990 INVESTCORP A BAHRAINBASED HOLDING COMPANY ALSO HOLDS MAJOR INTERESTS IN SAKS FIFTH AVENUE AND COLOR TILE INC AMONG OTHER COMPANIES 9307280094 930728 REGULATORS CONGRESS ARE CITED BY PANEL FOR THRIFT DEBACLE WASHINGTON OVERACCOMMODATING REGULATORS CONGRESS AND THE REAGAN ADMINISTRATION TURNED SIZABLE SAVINGSANDLOAN LOSSES IN THE EARLY 1980S INTO AN OVERWHELMING TAXPAYER BAILOUT OF THE INDUSTRY ACCORDING TO A COMMISSION REPORT THE SIZE OF THAT RESCUE WHICH COULD WIND UP AT ABOUT 180 BILLION WHEN COMPLETED WAS CAUSED BY REGULATORS' UNWISE CONTINUED FORBEARANCE SAID THE NATIONAL COMMISSION ON FINANCIAL INSTITUTION REFORM RECOVERY AND ENFORCEMENT WHICH WAS CREATED BY CONGRESS IN 1990 TO ASSESS THE CAUSES OF THE S&L DEBACLE THE REPORT SAID THAT INSOLVENT THRIFTS WERE GIVEN SUBSTANTIAL POWERS TO INVEST IN RISKY NEW AREAS IN WHICH THEY LACKED EXPERTISE BUT THAT THEY WERE SUPERVISED LESS MEANTIME GOVERNMENTBACKED DEPOSIT INSURANCE WAS INCREASED SHIELDING THE S&LS FROM MARKET DISCIPLINE HIGH INTEREST RATES IN THE 19791982 PERIOD LED TO BIG S&L LOSSES THE COMMISSION SAID BUT THE TOTAL COST TO TAXPAYERS OF THE CLEANUP PROBABLY WOULDN'T HAVE EXCEEDED 25 BILLION IF THE NOWDEFUNCT FEDERAL HOME LOAN BANK BOARD HAD MOVED IN 1983 TO CLOSE INSOLVENT THRIFTS THE BAILOUT DIDN'T GET FULLY UNDER WAY UNTIL 1988 EFFECTIVE LOBBYING OF CONGRESS BY THE INDUSTRY EXPLOITED POWERFUL POLITICAL ADVANTAGES TO DOWNPLAY POTENTIAL LOSSES THE REPORT SAID IN ITS REPORT THE COMMISSION RECOMMENDED CONVERTING THRIFTS INTO COMMERCIAL BANKS AND LIMITING THE ABILITY OF THE FINANCIAL INSTITUTIONS TO MAKE INVESTMENTS THAT ARE TIED TO INSURED DEPOSITS THESE INSTITUTIONS COULD ONLY INVEST IN LOWRISK SHORTTERM DEBT INSTRUMENTS SUCH AS TREASURY BILLS 9307280093 930728 HEALTH CARE REPORT FROM THE TRENCHES MY WAR AGAINST MEDICARE'S BUREAUCRACY BY LOIS J COPELAND I AM A PHYSICIAN IN SOLO PRACTICE AND I AM IN MOURNING FOR THE DIGNITY AND NOBILITY OF THE MEDICAL PROFESSION GOVERNMENT INTERVENTION IN MEDICINE HAS TAKEN AWAY THE DIGNITY OF THE PHYSICIAN AND THE PRIVACY OF THE PATIENTPHYSICIAN RELATIONSHIP AND IT THREATENS THE FINANCIAL VIABILITY OF PRIVATE PRACTICE GOVERNMENT REGULATIONS HAVE RESTRICTED THE FREEDOM OF PHYSICIANS TO CARE FOR MEDICARE PATIENTS ADEQUATELY REDUCED THE NUMBER OF PHYSICIANS WILLING TO CARE FOR THESE PATIENTS AND YET HAS NOT REDUCED OVERALL MEDICAL COSTS ULTIMATELY THE GOVERNMENT HAS DENIED OLDER AMERICANS FREEDOM OF CHOICE IN HEALTHCARE PURCHASING THE MEDICARE BUREAUCRACY HAS ATTEMPTED TO PROHIBIT DOCTORS FROM MAKING PRIVATE CONTRACTS WITH THEIR MEDICARE PATIENTS EVEN WHEN NO MEDICARE REIMBURSEMENT IS BEING SOUGHT EFFECTIVELY TURNING THE LARGE MAJORITY OF SENIOR CITIZENS IN THIS COUNTRY INTO DISENFRANCHISED SECONDCLASS CITIZENS THEY HAVE LITTLE VOICE IN THE INTIMATE DECISIONS OF THEIR OWN HEALTH CARE AND NO INSURANCE ALTERNATIVE AVAILABLE TO THEM EXCEPT MEDICARE UNLESS THEY CONTINUE TO BE EMPLOYED I DECIDED TO ACT AGAINST THIS DEGRADATION IN 1991 WITH FIVE OF MY PATIENTS I FOUGHT ONE PART OF THE FEDERAL HEALTH SYSTEM MEDICARE PART B OUR GOAL WAS TO REGAIN FREEDOM OF CHOICE FOR SENIOR CITIZENS WHO WANT FULL ACCESS TO HIGHQUALITY HEALTH CARE AS WELL AS PRIVACY AND DIGNITY IN THEIR RELATIONSHIP WITH THEIR PHYSICIANS INITIALLY IN THE 1970S MY EXPERIENCES WITH MEDICARE WERE QUITE POSITIVE I AND MY PATIENTS WERE SATISFIED WITH THE PROGRAM AND I WAS HAPPY TO ACCEPT NEW MEDICARE PATIENTS BUT THE SITUATION BEGAN TO DETERIORATE IN THE MID1980S WHEN FACED WITH SPIRALING MEDICARE OUTLAYS INCREASING LONGEVITY AND A MANDATE TO CUT COSTS CONGRESS ENACTED INITIATIVES DESIGNED TO REGULATE DOCTORS' FEES FOR MEDICARE SERVICES CONGRESS IN 1985 IMPOSED A TEMPORARY PRICE FREEZE ON MEDICARE PHYSICIAN SERVICES CONGRESS EVENTUALLY REPLACED THE FREEZE WITH A SWEEPING NEW MEDICARE PRICING SYSTEM THE RESOURCEBASED RELATIVE VALUE SCALE RBRVS THE RBRVS SYSTEM WHICH IS STILL IN PLACE HAS STRICT PRICE CAPS FOR SERVICES AND FINES AND SANCTIONS FOR DOCTORS NOT IN COMPLIANCE AND IT IS COUPLED WITH CONTROLS OVER THE VOLUME OF SERVICES A PHYSICIAN CAN PROVIDE THROUGH THE MEDICARE SYSTEM CARRIER BUREAUCRATS FREQUENTLY INTERFERE WITH MEDICAL DECISION MAKING CHANGE PHYSICIANSUBMITTED SERVICE CODES TO LESSEN THE AMOUNT REIMBURSED AND RETROACTIVELY DENY PAYMENT FOR ALREADY PROVIDED SERVICES AS A RESULT MANY DOCTORS HAVE BEGUN TO LIMIT THE NUMBER OF MEDICARE PATIENTS THEY WILL SEE OR HAVE STOPPED SEEING THEM ALTOGETHER THE IMPOSITION OF MANY OF THE REGULATIONS DID NOT SEEM COMPATIBLE WITH THE INDIVIDUAL FREEDOM ONCE ASSOCIATED WITH THIS COUNTRY BY 1990 I HAD BECOME VERY DEPRESSED BY THESE GOVERNMENT INTRUSIONS ON MY PRACTICE AND WAS SERIOUSLY CONSIDERING LEAVING MEDICINE MANY PATIENTS EXPRESSED THE DESIRE TO FIND ALTERNATE PRIVATE INSURANCE AND MANY WANTED TO MAKE INDIVIDUAL ARRANGEMENTS UNDER PRIVATE CONTRACT WITH ME TO OBTAIN THEIR MEDICAL CARE UNDER SUCH ARRANGEMENTS THE MEDICARE REGULATORS WOULD HAVE NO REASON TO INTRUDE NO LONGER WOULD IT BE NECESSARY FOR OLDER PATIENTS TO BE REFUSED SERVICES BY PHYSICIANS UNWILLING TO SUBJECT THEMSELVES TO THE HARASSMENT OF THE BUREAUCRACY BUT SUCH AN AGREEMENT WAS PROHIBITED BY THE MEDICARE CARRIERS WHO WERE BACKED UP BY THE HEALTH CARE FINANCING ADMINISTRATION THE BUREAUCRACY IN CHARGE OF MEDICARE THE BUREAUCRATS ASSUMED EVIL INTENT ON THE PART OF PHYSICIANS AND POSED AS THE PROTECTORS OF EXPLOITED SENIOR CITIZENS IN REALITY PHYSICIANS WERE BEING EXPLOITED BY HCFA IN ITS UNREALISTIC SETTING OF BELOWMARKET FEE SCHEDULES WHICH DISREGARDED PHYSICIANS' TRUE OVERHEAD THE INESCAPABLE RATIONING FORCED BY SUCH MEDDLESOME AND PUNITIVE REGULATIONS PROMPTED ME AND FIVE OF MY PATIENTS TO FILE SUIT IN FEDERAL COURT IN NEWARK NJ TO ENABLE MEDICARE PATIENTS TO CONTRACT PRIVATELY FOR MEDICAL CARE OUTSIDE PART B WITHOUT RESIGNING FROM PART B OUR CASE FILED ON JAN 31 1992 BECAME KNOWN AS STEWART V SULLIVAN KENT MASTERSON BROWN LEGAL COUNSEL FOR THE ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS REPRESENTED US AND WAS CONFIDENT THAT WE WOULD WIN THE FREEDOM TO CONTRACT BECAUSE HIS RESEARCH HAD REVEALED NO EXPLICIT PROHIBITION IN THE MEDICARE LAW OR REGULATIONS PUBLISHED IN THE FEDERAL REGISTER AGAINST SUCH ARRANGEMENTS MEDICARE LAW REPEATEDLY STATES THAT WITH RESPECT TO PART B MEDICARE IS AN ENTITLEMENT NOT A COMPULSORY REQUIREMENT AND THE ORIGINAL MEDICARE STATUTE STATES THAT NOTHING IN THE MEDICARE LAW PROHIBITS A BENEFICIARY FROM OBTAINING HEALTHCARE SERVICES THROUGH ANY OTHER MEANS OF PAYMENT OR INSURANCE OUR LAWSUIT FUNDED INITIALLY BY PATIENT CONTRIBUTIONS WAS HEARD IN ORAL ARGUMENTS ON SEPT 14 1992 IN FEDERAL COURT IN NEWARK BY JUDGE NICHOLAS POLITAN BASED ON GOVERNMENTAL TESTIMONY AND CONTRADICTORY CORRESPONDENCE JUDGE POLITAN RULED ON OCT 26 THAT HE DID NOT BELIEVE THAT THE HHS SECRETARY HAD CLEARLY ARTICULATED A POLICY AGAINST PRIVATE CONTRACTING JUDGE POLITAN DISMISSED THE CASE AFTER FINDING FOR US ON A CRITICAL POINT IF SECRETARY SULLIVAN HAD ARTICULATED A CLEAR POLICY AGAINST PRIVATE CONTRACTING SUCH A POLICY WOULD CONSTITUTE AN INJURY IN FACT GIVING BOTH ME AND MY PATIENTS STANDING TO SUE HE STATED THAT WE THE PLAINTIFFS WOULD FIND RELIEF IN HIS COURT THE OPINION IN STEWART V SULLIVAN UPHELD THE IDEA THAT US CITIZENS HAVE THE RIGHT TO DO THAT WHICH WE ARE NOT EXPRESSLY PROHIBITED FROM DOING AS STATED IN THE NINTH AMENDMENT AND AS ARTICULATED IN THE DECLARATION OF INDEPENDENCE TO SAY OTHERWISE CREATES THE DANGEROUS CONTEXT IN WHICH THE CITIZEN ACTS ONLY BY PERMISSION OF THE GOVERNMENT RATHER THAN BY RIGHT THE MEDICARE BUREAUCRACY CONFUSING ITS POSITION WITH THAT OF CONGRESS ACTS AS AN INDEPENDENT LEGISLATIVE BODY AND CONTINUES ITS POLICY OF INTIMIDATION ALTHOUGH MANY PHYSICIANS WHO ARE UNWILLING TO CEDE THEIR OR THEIR PATIENTS' RIGHTS TO THE OPPRESSION OF THE BUREAUCRACY ARE BEGINNING TO CONTRACT PRIVATELY WITH SENIOR CITIZENS MANY PHYSICIANS CONTINUE TO RETIRE EARLY OR REFUSE TO DEAL WITH MEDICARE AND ITS CAPTIVE ENROLLEES HAVING WITNESSED FIRSTHAND THE ENSNAREMENT OF DOCTORS AND PATIENTS IN THE MEDICARE WEB I DREAD THE PROSPECT OF GOVERNMENT OR THIRDPARTY HEALTH CARE MANAGEMENT THE DANGER IS THAT THE POOL OF TALENTED DEDICATED INNOVATIVE PHYSICIANS WILL GIVE WAY TO DOCTORS WORKING NOT FOR THEIR PATIENTS BUT FOR A GOVERNMENT OR CORPORATE PAYCHECK THE CIVIL SERVANT MENTALITY WILL PREDOMINATE RATIONING WILL BE INEVITABLE AND THE HIPPOCRATIC ETHIC WHICH EMPHASIZES THE GOOD OF THE PATIENT WILL DISAPPEAR UNDER SUCH A SYSTEM THE PROFESSION OF MEDICINE THAT AMERICANS HAVE KNOWN AND COME TO RELY ON WILL CEASE TO EXIST DR COPELAND IS AN INTERNIST IN HILLSDALE NJ THIS ARTICLE IS ADAPTED FROM THE SUMMER ISSUE OF POLICY REVIEW PUBLISHED BY THE WASHINGTONBASED HERITAGE FOUNDATION 9307280092 930728 WHO'S NEWS FLAGSTAR COS FLAGSTAR COS SPARTANBURG SC JOSEPH D RUSSELL 50 YEARS OLD WAS NAMED TO THE NEW POSITION OF CIVIL RIGHTS MONITOR FOR THE DENNY'S RESTAURANT CHAIN MR RUSSELL'S PREVIOUS JOB WAS PRESIDENT OF RUSSELL & ASSOCIATES A SAN DIEGOBASED MANAGEMENT CONSULTING FIRM SEVERAL LAWSUITS HAVE BEEN FILED SINCE MARCH BY CUSTOMERS ALLEGING RACIAL DISCRIMINATION AT DENNY'S RESTAURANTS IN APRIL FLAGSTAR AND THE JUSTICE DEPARTMENT SIGNED A CONSENT DECREE TO ENSURE FAIR AND EQUAL TREATMENT FOR ALL DENNY'S CUSTOMERS MR RUSSELL'S RESPONSIBILITIES WILL INCLUDE IMPLEMENTING AND MONITORING DIVERSITYSENSITIVITY TRAINING FOR ALL DENNY'S EMPLOYEES AND RANDOM TESTING AT DENNY'S RESTAURANTS IN CALIFORNIA WHERE MANY OF THE COMPLAINTS HAVE BEEN LODGED MR RUSSELL WILL BE BASED IN DENNY'S REGIONAL OFFICE LOCATED IN IRVINE CALIF 9307280091 930728 TRADE PANEL BACKS FOREIGN STEEL CONCERNS BY ASRA Q NOMANI AND DANA MILBANK STAFF REPORTERS OF THE WALL STREET JOURNAL THE US INTERNATIONAL TRADE COMMISSION CLEARED FOREIGN STEEL PRODUCERS OF THE BULK OF THE PENDING CLAIMS OF UNFAIR TRADING PRACTICES EASING TRADE TENSIONS BUT DEALING A DEVASTATING BLOW TO THE STRUGGLING US STEEL INDUSTRY THE QUASIJUDICIAL BODY'S SIX COMMISSIONERS RULED STEEL IMPORTS DIDN'T INJURE THE US INDUSTRY IN MORE THAN HALF OF 74 CASES IN WHICH DOMESTIC PRODUCERS CLAIM FOREIGN COMPANIES EITHER RECEIVE UNFAIR SUBSIDIES OR DUMP THEIR STEEL AT UNFAIRLY LOW PRICES THE RULINGS EFFECTIVELY REMOVE MUCH OF THE TARIFFS THE COMMERCE DEPARTMENT IMPOSED UPON STEEL FROM 20 COUNTRIES LAST MONTH THOSE DUTIES AVERAGED 37 IN ITS TEMPERED ACTION YESTERDAY THE COMMISSION CLEARED THE WAY FOR DUTIES FOR A MUCH SMALLER AMOUNT OF STEEL PRODUCTS FROM 16 COUNTRIES IT'S A VICTORY FOR THE FOREIGN LAWYERS AND LOBBYISTS AND A DISASTER FOR THE DOMESTIC STEEL INDUSTRY SAID ALFRED ECKES A FORMER ITC COMMISSIONER THE STEEL INDUSTRY HAS BEEN IN YEAR AFTER YEAR FOR THE LAST 20 YEARS AND THERE JUST ISN'T AS MUCH SYMPATHY FOR THEM THE RULING CAME AS A SHOCK TO WALL STREET WHICH HAD EXPECTED A VICTORY FOR THE DOMESTIC INDUSTRY INVESTORS DUMPED STEEL SHARES AS ANALYSTS TURNED BEARISH ON THE STOCKS THE OVERALL STOCK MARKET ALSO CLOSED LOWER FOR USX CORP SHARES OF ITS USXUS STEEL UNIT SKIDDED 475 TO 31875 BETHLEHEM STEEL CORP SHARES PLUNGED 3875 TO 14875 INLAND STEEL INDUSTRIES INC SHARES SANK 325 TO 26375 AND NATIONAL STEEL CORP SHARES SHED 550 TO CLOSE AT 14875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EVEN NUCOR CORP A STEEL MINIMILL OPERATOR THAT OPPOSED THE INDUSTRY'S CASES SAW ITS SHARES DROP 425 TO 8125 WE'VE GONE TO A SELL RATING ON ALL THESE STOCKS EVERY ONE OF THEM SAID PETER MARCUS PAINEWEBBER STEEL ANALYST IT'S VERY TOUGH THESE STOCKS ARE GOING TO BE HURT AND THESE COMPANIES WILL BE HURT MR MARCUS PREDICTED THE RULINGS WILL CAUSE STEEL PRICES TO SLIP AND DASH HOPES FOR A FOURTHQUARTER PRICE INCREASE US STEEL PRODUCERS FILED THE CASES 13 MONTHS AGO IN HOPES OF BLOCKING MORE THAN SEVEN MILLION TONS OF FLATROLLED STEEL IMPORTS INTO THE US EACH YEAR NOW IT'S EXPECTED THEY WILL BLOCK ONLY ABOUT ONE MILLION TONS IMPORTS HAD FALLEN TO 16 OF THE US MARKET IN THE FIRST FIVE MONTHS OF 1993 FROM 18 A YEAR EARLIER THE WIND SEEMED TO BE BLOWING IN THEIR DIRECTION UNTIL YESTERDAY WHEN THE COMMISSIONERS READ OFF THEIR VOTES IN A SOMBER ONEHOUR HEARING THE AUDIENCE OF LAWYERS LOBBYISTS AND STEEL PRODUCERS FUMBLED TO KEEP TRACK OF THE PROCEEDINGS ON EIGHTPAGE TALLY SHEETS EXPECTATIONS WERE PARTICULARLY OPTIMISTIC FOR US STEELMAKERS BECAUSE OF THE HUGE TARIFFS THE COMMERCE DEPARTMENT JUST APPROVED ON THE PRODUCTS UNDER US TRADE LAW THE TARIFFS ALSO NEEDED THE APPROVAL OF THE ITC ON THE ISSUE OF WHETHER THE US INDUSTRY WAS BEING DAMAGED YESTERDAY'S DECISION TOTALLY CHANGES THE PICTURE SAYS BOB CRANDALL A BROOKINGS INSTITUTION ECONOMIST WHO TESTIFIED IN THE STEEL CASES ON BEHALF OF FOREIGN PRODUCERS THIS GREATLY DIMINISHES THE PROTECTION THE US HOPED TO GET THE DECISIONS ARE PARTICULARLY DAMAGING TO THE OLDLINE PRODUCERS WHO FILED THE COMPLAINTS MOST SIGNIFICANTLY US PRODUCERS SUFFERED RESOUNDING LOSSES IN THE HOTROLLED SHEET AND COLDROLLED SHEET BUSINESS WHICH RESPECTIVELY ACCOUNT FOR 17 AND 16 OF THE US MARKET THOSE STEEL TYPES ARE USED IN THE MAKING OF AUTOS AND APPLIANCES THE LOSSES IN THOSE TWO AREAS WILL MOST LIKELY DRAG DOWN PRICES FOR ALL SHEET STEEL IMPORTS OF HOTROLLED STEEL SHEET THE SEMIFINISHED FORM OF THE PRODUCT CAN BE EASILY CONVERTED INTO THE FINISHED COLDROLLED OR COATED STEEL ONCE THEY ARE IN THE US THE US PRODUCERS WON MOST OF THE STEELPLATE CASES THOUGH THIS PRODUCT AT ABOUT 9 OF THE MARKET WAS THE SMALLEST OF THE PRODUCTS AT ISSUE THEY ALSO WON MANY CASES IN COATED STEEL SHEET WHICH ACCOUNTS FOR 16 OF THE MARKET TRADE TENSIONS WERE AT RISK OF WORSENING IF YESTERDAY'S DECISIONS HAD GONE AGAINST FOREIGN PRODUCERS IN A WARNING LAST MONTH THAT STIRRED RANCOR AMONG SOME ITC COMMISSIONERS FRENCH PRIME MINISTER EDOUARD BALLADUR HAD WARNED THAT WORLD TRADE TALKS WOULD BE IN TROUBLE IF THE US DIDN'T PULL ITS FOREIGN STEEL DUTIES THOSE TALKS CALLED THE URUGUAY ROUND FOR THEIR ORIGINAL MEETING PLACE HAVE BEEN DRAGGING ON FOR YEARS UNDER THE AUSPICES OF THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE EUROPEAN REACTION TO YESTERDAY'S STEEL ACTION DOES EASE THE WAY FOR THE BROAD TRADE TALKS SAYS PAULA STERN A FORMER ITC COMMISSIONER WHO IS REPRESENTING THE COALITION OF AMERICAN BUSINESSES FOR STABLE STEEL SUPPLIES A GROUP OF STEEL IMPORTERS THAT CONSIDER ANY STEEL DUTIES HARMFUL TO THEIR BUSINESS EUROPEAN OPINION HAD CLEARLY REVERSED BY YESTERDAY WE'RE ECSTATIC SAYS MICHEL LONGCHAMPT PRESIDENT OF FRANCO STEEL THE US UNIT OF FRANCE'S USINOR SACILOR SA HE SAID FRANCE EXPORTS VERY LITTLE COLDROLLED STEEL THE ONLY PRODUCT ON WHICH THE ITC RULED AGAINST IT SIR LEON BRITTAN THE EUROPEAN COMMUNITY COMMISSION VICE PRESIDENT FOR EXTERNAL ECONOMIC AFFAIRS SAID THE DETERMINATIONS WILL HELP TO DEFUSE SUBSTANTIALLY WHAT HAD BECOME A VERY GRAVE TRADE DISPUTE SIR LEON SAID THE RULINGS WILL DO MUCH TO IMPROVE THE ATMOSPHERE NOT ONLY IN THE DISCUSSIONS ON STEEL BUT WITH REGARD TO THE URUGUAY ROUND ITSELF THE ITC COMMISSIONERS WERE VERY CAREFUL HOWEVER TO ASSERT THEIR INDEPENDENCE FROM POLITICS ARGUING IN SOME CASES THAT QUALITY AND AVAILABILITY INJURED THE US INDUSTRY MORE THAN PRICES DID IN OTHER CASES COMMISSIONERS ARGUED THAT IMPORTS DON'T CONTROL A SIZABLE ENOUGH PART OF THE US MARKET TO INJURE DOMESTIC MANUFACTURERS AFTER CASTING HIS VOTES ITC COMMISSIONER DAVID ROHR SAID IT'S TOTALLY ABSURD TO SAY THAT POLITICS ENTERED INTO ANY OF THE DECISIONS TRADE AND STEEL OFFICIALS SAY YESTERDAY'S DECISIONS MEAN US STEELMAKERS ARE GOING TO HAVE TO BECOME MORE AMENABLE TO FORGING A MULTILATERAL STEEL ACCORD THAT WOULD SETTLE THEIR MANY TRADE DISPUTES WITH FOREIGN PRODUCERS TALKS ON SUCH AN AGREEMENT HAVE BEEN GOING ON FOR MONTHS WITHOUT RESOLUTION AND THE RULINGS WILL WEAKEN US PRODUCERS' LEVERAGE IN THOSE NEGOTIATIONS ITC CHAIRMAN DONALD NEWQUIST WHO VOTED MOSTLY FOR THE US STEEL INDUSTRY HELD OUT THE TALKS AS THE ANSWER TO THE TRADE DISPUTE PRAY FOR SOME TYPE OF MULTILATERAL STEEL AGREEMENT HE SAID OUTSIDE THE HEARING ROOM MOMENTS AFTER THE FINAL TALLY JOHN JACOBSON AN INDUSTRY CONSULTANT WHO HEADS JACOBSON & ASSOCIATES SAID THE RULING PROVIDES TOO MANY HOLES FOR THE CASES TO PROVIDE MUCH RELIEF THE WINDFALL THE INDUSTRY HAD BEEN EXPECTING IS NOT GOING TO BE THERE HE SAID NOW THEY'VE GOT TO PAY THEIR DUES TRADITIONAL US STEELMAKERS WHO ARE JUST RETURNING TO PROFITABILITY AFTER A LONG SLUMP NOW MUST CONTEND WITH CONTINUED IMPORTS AND DOWNWARD PRESSURE ON PRICES WITHOUT THE TRADE PROTECTION TO PROVIDE BREATHING ROOM THE STEELMAKERS WILL HAVE TO CUT COSTS AND POSSIBLY SHED ASSETS WITH NEW DETERMINATION MR JACOBSON SAID THIS PROCESS THOUGH PAINFUL WILL IMPROVE THE INDUSTRY'S LONGTERM PROSPECTS MORE THAN TRADE RULINGS WOULD HAVE THE INDUSTRY'S LOSSES AT THE TRADE COMMISSION WILL LIKELY INCREASE PRESSURE ON THE CLINTON ADMINISTRATION TO ADOPT A POLICY TO PROTECT THE TRADITIONAL STEELMAKERS WHICH ARE BEING SQUEEZED BY HUGE PENSION AND RETIREE HEALTHCARE OBLIGATIONS WHILE LOSING GROUND TO LOWCOST MINIMILLS THE ITC CLEARED JAPANESE STEELMAKERS ON ALL ALLEGATIONS OF STEEL DUMPING EXCEPT FOR CORROSIONRESISTANT STEEL SHEET THAT TYPE OF SHEET IS A MAJOR JAPANESE EXPORT IN JAPAN THE DECISION WAS CALLED TRULY REGRETTABLE AND IMPOSSIBLE TO UNDERSTAND IN A STATEMENT BY HIROSHI SAITO CHAIRMAN OF THE JAPAN IRON AND STEEL FEDERATION JAPANESE STEELMAKERS HAVEN'T DAMAGED THE US INDUSTRY BECAUSE MOST OF THEIR EXPORTS ARE PRODUCTS THAT US MILLS FIND DIFFICULT TO PRODUCE MR SAITO SAID STEEL USERS WERE MORE RESTRAINED WE DODGED THE BULLET SAID JON JENSON PRESIDENT OF PRECISION METALFORMING ASSOCIATION A CLEVELANDBASED TRADE GROUP BUT HE WARNED THAT IMPORTERS WILL STILL BE HURT BY THE COMMISSION RESULTS THAT UPHELD IMPORT TARIFFS 9307280090 930728 CD YIELDS INCREASED AT BIG BANKS BROKERS IN MOST RECENT WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE UP SLIGHTLY IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS ROSE TO 273 FROM 272 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS CLIMBED TO 475 FROM 474 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS ROSE TO 314 FROM 307 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 461 FROM 450 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED UP TO 282 FROM 279 ON FIVEYEAR JUMBOS THE AVERAGE WENT TO 481 FROM 477 ACCORDING TO BANXQUOTE 9307280088 930728 CREDIT RATINGS JB HUNT TRANSPORT SERVICES INC LOWELL ARK MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED THE COMMERCIAL PAPER RATING OF JB HUNT TO PRIME2 FROM PRIME1 ABOUT 200 MILLION OF DEBT IS AFFECTED MOODY'S SAID ITS MOVE STEMS FROM JB HUNT'S SIGNIFICANT INCREASE IN CAPITAL SPENDING AND SUBSEQUENT DEBT TO FINANCE ITS HIGHGROWTH STRATEGY THE RATING AGENCY SAID IT RECOGNIZES THAT JB HUNT IS A LEADING TRUCKING COMPANY BUT MANAGEMENT'S GROWTH STRATEGY AND COMMITMENT TO MAINTAIN A YOUNG FLEET ARE LIKELY TO PUSH DEBT LEVELS BEYOND LEVELS REQUIRED FOR A PRIME1 RATING AT THE SAME TIME A SLOWER ECONOMIC RECOVERY AND SHORTTERM INEFFICIENCIES ARISING FROM NEW OPERATIONS WILL PUT FURTHER STRAIN ON THE COMPANY MOODY'S SAID 9307280087 930728 BUSINESS BRIEF BRUSH WELLMAN INC QUARTERLY EARNINGS FELL 95 LOWER '93 PROFIT FORECAST BRUSH WELLMAN INC SAID SECONDQUARTER EARNINGS PLUNGED 95 AND CITING WEAK DEMAND FOR HIGHPROFITMARGIN BERYLLIUM METAL AND HIGH COSTS OF ITS NEWPRODUCT LINE THE COMPANY EXPECTS 1993 EARNINGS TO FALL SHORT OF THE 21 MILLION OR 13 CENTS A SHARE EARNED IN 1992 HOWEVER THE CLEVELAND METALS CONCERN SAID IT EXPECTS 1993 SALES TO IMPROVE FROM 1992'S 668 MILLION WHICH WOULD MARK THE FIRST ANNUAL INCREASE SINCE 1988 IN ITS SECOND QUARTER NET INCOME PLUMMETED TO 157000 OR ONE CENT A SHARE FROM 3 MILLION OR 19 CENTS A SHARE IN THE YEARAGO PERIOD SALES WERE UP 5 TO 709 MILLION FROM 673 MILLION 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 9307280086 930728 MARKETING BRIEF WASHINGTON POST CO MEDIA CONCERN POSTS DROP OF 17 IN 2NDPERIOD NET WASHINGTON POST CO REELING FROM A SOFT WASHINGTONAREA ECONOMY REPORTED NET INCOME FOR THE SECOND QUARTER FELL 17 A LARGER DROP THAN ANALYSTS HAD EXPECTED NET FELL TO 38 MILLION OR 323 A SHARE FROM 458 MILLION OR 387 A SHARE A YEAR EARLIER REVENUE FELL TO 3767 MILLION FROM 3769 MILLION IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE WASHINGTON POST CLOSED AT 22550 UP 12 1/2 CENTS A SHARE THE COMPANY BLAMED A WEAK ECONOMY IN WASHINGTON AND A SOFT MARKET FOR NATIONAL ADVERTISING AT NEWSWEEK FOR THE EARNINGS DECLINE 9307280085 930728 WORKING AGAINST THE ODDS BY CHRISTINA DUFF DESPITE THE BLEAK JOB MARKET SOME MEMBERS OF GENERATION X ARE ALREADY CARVING OUT A PLACE FOR THEMSELVES A FEW ARE HIGHPROFILE ACHIEVERS SUCH AS MICHAEL S DELL THE 28YEAROLD FOUNDER OF DELL COMPUTER CORP AND JEFF ZUCKER WHO BECAME THE EXECUTIVE PRODUCER OF NBC'S TODAY SHOW AT THE AGE OF 26 NOT ALL THOUGH ARE HOUSEHOLD NAMES CHRIS LAMOREAUX 24 AND HER HUSBAND JASON 23 THE PALM SPRINGS CALIF COUPLE OWNS TWO OF RENTAWRECK'S MOST PROFITABLE FRANCHISES AND JUST OPENED A 3000SQUAREFOOT CELLULARPHONE AND CARSERVICE STORE THE LAMOREAUXS BOUGHT THEIR FIRST RENTALCAR FRANCHISE IN 1991 WITH HER PARENTS COSIGNING A LOAN OWNING A BUSINESS WAS THE ONLY WAY TO GET AHEAD IN THE TIGHT JOB MARKET FIGURED MRS LAMOREAUX WHO HAD JUST GRADUATED FROM CALIFORNIA STATE COLLEGE AT SAN BERNARDINO AT THE TIME THE COUPLE INITIALLY KNEW NOTHING ABOUT THE BUSINESS WHEN THE FIRST CUSTOMER INQUIRED ABOUT THE PRICE OF A MIDSIZE CAR MRS LAMOREAUX PUT HIM ON HOLD CALLED HERTZ FOR ITS PRICE AND THEN KNOCKED IT DOWN A FEW DOLLARS BUT THEY HAVE SINCE PAID OFF THEIR LOANS BOUGHT A SECOND FRANCHISE IN SAN DIEGO AND INCREASED THEIR FLEET TO 90 FROM 12 JAMES ROBERSON AGE 28 A MUSICIAN HE FOUNDED REBUILD/REJOICE A LOS ANGELES GOSPEL CHOIR THAT UNITES KOREAN AND BLACK YOUTHS FOLLOWING THE RIOTS TRIGGERED BY THE RODNEY KING TRIAL IN JANUARY HE ALSO STARTED A RECORD LABEL JUST DO IT RECORDS WHICH SO FAR HAS ONE GOSPEL CHOIR RECORDING TO ITS CREDIT RAISED IN DALLAS MR ROBERSON TOOK PART IN THE HEAD START PROGRAM AND LEARNED TO SING AND PLAY PIANO WITH HIS GOSPEL CHURCH CHOIR HE ATTENDED THE UNIVERSITY OF TEXAS AT AUSTIN ON A SCHOLARSHIP THEN LANDED A JOB AT CAPITAL RECORDS ONLY AFTER BOTHERING THEM FOR THREE MONTHS HE SAYS UNHAPPY WITH AN OFFICE JOB HE SANG BACKUP FOR TWO YEARS FOR BLUES SINGER MAXINE OTIS THEN WHILE GETTING HIS MBA AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES LAST YEAR MR ROBERSON RECEIVED A 3000 GRANT FROM THE CITY'S ART FUND TO START HIS CHOIR MY FRIENDS LOOK AT ME LIKE I'M SOME FREAK OF NATURE BUT THEY'RE JUST AFRAID OF DOING THEIR OWN THING HE SAYS THIS IS WHAT I HAVE TO DO FIDEL VARGAS 24 AS THE COUNTRY'S YOUNGEST MAYOR OF A MAJOR TOWN MR VARGAS PRESIDES OVER BALDWIN PARK CALIF A LOS ANGELES SUBURB OF 70000 AFTER GRADUATING FROM HARVARD IN 1990 AND WINNING A GRANT TO SET UP LITTLE LEAGUE PROGRAMS IN EUROPE MR VARGAS RETURNED TO HIS HOMETOWN OF BALDWIN PARK IN 1991 TO BE NEAR FAMILY HE IS THE OLDEST OF EIGHT CHILDREN OF HIS MEXICAN IMMIGRANT PARENTS MARRIED WITH TWO CHILDREN OF HIS OWN HE TOOK A JOB AS DIRECTOR OF SPECIAL PROJECTS FOR CORDOBA CORP A HISPANICOWNED CONSULTING FIRM IN LOS ANGELES BUT HE BECAME DISENCHANTED WITH THE LOCAL GOVERNMENT AND SUCCESSFULLY CHALLENGED THE MAYORAL INCUMBENT IN APRIL 1992 BECAUSE OF HIS AGE AND HIS PREFERENCE FOR JEANS AND NIKE TENNIS SHOES MR VARGAS GETS MORE THAN HIS SHARE OF LOCAL MEDIA SCRUTINY I JUST ALWAYS MAKE SURE HE SAYS I'VE DONE MY HOMEWORK KIMBERLE LEVIN 29 SIX YEARS AGO AS A DIVORCED MOTHER WITH A YOUNG CHILD SHE STARTED JVC TECHNOLOGIES INC A WAYNE PA COMPUTERNETWORKING CONCERN MS LEVIN DESCRIBES HERSELF AS AN INDIFFERENT STUDENT WHO NEVER WENT TO COLLEGE AT 21 SHE MARRIED A TRUCK DRIVER AND WORKED FIRST AS A SECRETARY AND LATER AS A DIRECTOR OF INVESTOR RELATIONS AT A NEW JERSEY ASBESTOSREMOVAL HOLDING COMPANY FASCINATED BY COMPUTERS SHE DECIDED TO GO INTO THE BUSINESS WITH A PARTNER A YOUNG MAN HER AGE WHO HAD INSTALLED A COMPUTER SYSTEM AT THE ASBESTOS FIRM HER HUSBAND STAYED BEHIND IN NEW JERSEY ALTHOUGH JVC COULD BARELY COVER EXPENSES AT FIRST IT IS PROJECTING 10 MILLION IN REVENUE THIS YEAR AND MS LEVIN IS DRAWING A SIXFIGURE SALARY SUZANNE GOLDBERG 29 AN ATTORNEY WITH LAMBDA LEGAL DEFENSE AND EDUCATION FUND SHE WAS INSTRUMENTAL IN SHOOTING DOWN AT LEAST TEMPORARILY COLORADO'S ANTIGAY RIGHTS REFERENDUM WORKING AS COCOUNSEL IN A SUIT BROUGHT BY SEVERAL GROUPS INCLUDING LAMBDA A NEW YORK GAY AND LESBIAN CIVILRIGHTS ORGANIZATION SHE ARGUED THAT THE REFERENDUM WAS UNCONSTITUTIONAL IN JANUARY A COLORADO STATE COURT GRANTED THE PRELIMINARY INJUNCTION SHE SOUGHT THE CASE GOES TO TRIAL IN OCTOBER MS GOLDBERG RAISED EYEBROWS AT AGE 10 BY BECOMING THE FIRST GIRL TO JOIN THE LITTLE LEAGUE TEAM IN HER HOMETOWN OF WHITE PLAINS NY AFTER GRADUATING FROM BROWN UNIVERSITY SHE WON A FULBRIGHT SCHOLARSHIP TO STUDY WOMEN AND PUBLIC POLICY IN SINGAPORE SHE THEN STUDIED ANTIDISCRIMINATION LAW AT HARVARD LAW SCHOOL SAYS MS GOLDBERG I CAN'T IMAGINE WHAT I'D RATHER BE DOING SEE RELATED STORY POOR PROSPECTS IN A PORTLAND HOT TUB YOUNG GRADS' ANXIETY BUBBLES TO THE SURFACE TWENTYSOMETHINGS FIND LIFE BLEAK AS THEY SORT MAIL FRET ABOUT THEIR POVERTY A FINE ARTS DEGREE HA HA' WSJ JULY 28 1993 9307280084 930728 TECHNOLOGY BRIEF SCHERINGPLOUGH CORP DNAX GETS PATENT FOR DRUG TREATING THE IMMUNE SYSTEM SCHERINGPLOUGH CORP SAID IT RECEIVED A US PATENT COVERING THE MANUFACTURE OF HUMAN INTERLEUKIN10 A PROTEIN INVOLVED IN SUPPRESSING THE IMMUNE SYSTEM'S INFLAMMATORY RESPONSE THE PATENT WHICH WAS GRANTED TO SCHERINGPLOUGH'S DNAX RESEARCH INSTITUTE IN PALO ALTO CALIF EXPIRES IN 2010 THE MADISON NJ COMPANY FILED A FEDERAL APPLICATION TO STUDY THE NEW DRUG IN MAY AND HAS INITIATED PHASEONE CLINICAL TRIALS TO ASSESS SAFETY AND TOLERANCE INTERLEUKIN10 MAY POSSIBLY BE USED AS AN IMMUNOSUPPRESSIVE AND ANTIINFLAMMATORY AGENT IN ORGAN TRANSPLANTS AND AS AN AUTOIMMUNE DISEASE TREATMENT THE COMPANY SAID IT DIDN'T SPECIFY DISEASES BUT THAT CATEGORY INCLUDES ALLERGIES ARTHRITIS AND DIABETES 9307280083 930728 BUSINESS BRIEF HAWAIIAN ELECTRIC INDUSTRIES INC UTILITY UNIT SERVING OAHU SEEKS RATE INCREASE OF 94 HAWAIIAN ELECTRIC INDUSTRIES INC SAID ITS ELECTRIC UTILITY SUBSIDIARY SERVING OAHU HAWAIIAN ELECTRIC CO FILED A REQUEST FOR A 94 RATE INCREASE OR 62 MILLION WITH THE HAWAII PUBLIC UTILITIES COMMISSION THE INCREASE FOR 1994 BASED ON A 126 RETURN ON AVERAGE COMMON EQUITY WOULD FUND MAJOR TRANSMISSION AND DISTRIBUTION PROJECTS INCLUDING A TRANSMISSION CORRIDOR TO CONNECT POWER PLANTS ON OAHU'S WEST SIDE WITH CUSTOMERS THROUGHOUT THE ISLAND HAWAIIAN ELECTRIC CO SAID IT PLANS TO SEEK ANOTHER RATE INCREASE IN 1995 THE HAWAIIAN ELECTRIC SUBSIDIARY SERVING THE ISLAND OF HAWAII ALSO NOTIFIED THE PUBLIC UTILITIES COMMISSION THAT IT PLANS TO FILE A RATE INCREASE REQUEST WITHIN 60 DAYS 9307280082 930728 BUSINESS BRIEF BENEFICIAL CORP PROFIT RISE OF 13 EXPECTED FOR CONTINUING OPERATIONS BENEFICIAL CORP EXPECTS TO REPORT A 13 GAIN IN SECONDQUARTER PROFIT FROM CONTINUING OPERATIONS BECAUSE OF STRONG INTERNAL GROWTH A LOWER PROPORTION OF CHARGES AND IMPROVED CREDIT QUALITY OF LOANS IT MAKES BENEFICIAL WHICH MAINLY OFFERS REALESTATE SECURED LOANS EXPECTS TO REPORT PROFIT FROM CONTINUING OPERATIONS OF 485 MILLION OR 180 A SHARE COMPARED WITH 43 MILLION OR 160 A SHARE A YEAR AGO THE PROFIT FORECAST IS IN LINE WITH MANY ANALYSTS' ESTIMATES THE YEAREARLIER FIGURE DOESN'T INCLUDE A LOSS OF THREE CENTS A SHARE FROM DISCONTINUED OPERATIONS FINN CASPERSON CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY'S INTERNAL RECEIVABLES NOT COUNTING ACQUISITIONS WILL INCREASE MORE THAN 350 MILLION IN THE SECOND QUARTER OR MORE THAN DOUBLE THE YEAREARLIER GROWTH THE GROWTH IS SURPRISING GIVEN THE RECENT ECONOMIC MALAISE BUT CONSUMERS ARE A LITTLE MORE CONFIDENT AND OUR MARKETING IS BETTER HE SAID 9307280081 930728 MENDE IS SENTENCED TO 12 YEARS IN PRISON FOR FRAUD CONVICTION LOS ANGELES A FEDERAL JUDGE SENTENCED MILTON ZUCKER MENDE TO 12 YEARS AND SEVEN MONTHS IN PRISON FOR ATTEMPTING TO DEFRAUD INVESTORS OUT OF MORE THAN 80 MILLION MR MENDE 80 YEARS OLD BEVERLY HILLS CALIF WAS CONVICTED LAST YEAR ON 25 COUNTS OF CONSPIRACY MAIL FRAUD WIRE FRAUD AND MONEY LAUNDERING FOR LURING HUNDREDS OF SMALL BUSINESSMEN INTO PAYING FEES RANGING UP TO SEVERAL HUNDRED THOUSAND DOLLARS EACH FOR LOANS OR LOAN GUARANTEES THAT HE AND HIS COCONSPIRATORS FALSELY PROMISED TO PROVIDE THE SCHEME RAN FROM 1984 UNTIL 1991 THE CALIFORNIA ATTORNEY GENERAL'S OFFICE HAS IDENTIFIED MR MENDE WHO HAD EIGHT PRIOR FELONY CONVICTIONS AS AN ASSOCIATE OF ORGANIZED CRIME STILL AWAITING SENTENCING BY JUDGE CONSUELO B MARSHALL IN THE CASE ARE SAMUEL A LONGO OF SALT LAKE CITY AND ROBERT S TURMAN OF MIAMI 9307280080 930728 BUSINESS BRIEF BLACK & DECKER CORP NEARDOUBLING OF EARNINGS POSTED FOR SECOND QUARTER BLACK & DECKER CORP SAID EARNINGS FOR THE SECOND QUARTER NEARLY DOUBLED TO 195 MILLION FROM A YEAR EARLIER BUT WARNED THAT ITS EUROPEAN AND ASIAN BUSINESSES ARE COMING UNDER PRESSURE DUE TO WEAK MARKETS THE MAKER OF POWER TOOLS AND HOUSEHOLD PRODUCTS SAID NET INCOME FOR THE QUARTER ENDED JULY 4 WAS 20 CENTS A SHARE COMPARED WITH 10 MILLION OR NINE CENTS A SHARE THE YEAR BEFORE THE YEARAGO PERIOD INCLUDED AN EXTRAORDINARY LOSS OF 21 MILLION OR THREE CENTS A SHARE FROM EXTINGUISHMENT OF DEBT REVENUE INCHED UP 2 TO 116 BILLION EXCLUDING FOREIGNEXCHANGE EFFECTS REVENUE ROSE 4 THE TOWSON MD COMPANY SAID ITS US CONSUMER BUSINESS HAD A GOOD PERFORMANCE LED BY DOUBLEDIGIT REVENUE GROWTH IN POWER TOOLS KWIKSET LOCKS AND HOUSEHOLD PRODUCTS 9307280079 930728 MIRAGE OFFICIAL'S DAUGHTER IS FREED AFTER KIDNAPPING LAS VEGAS AP THE DAUGHTER OF MIRAGE RESORTS INC CHAIRMAN STEVE WYNN WAS KIDNAPPED FROM HER HOME THEN RELEASED UNHARMED SEVERAL HOURS AFTER A 15 MILLION RANSOM WAS PAID OFFICIALS GAVE FEW DETAILS OF THE CASE BUT PEOPLE FAMILIAR WITH THE INVESTIGATION SPEAKING ON THE CONDITION OF ANONYMITY CONFIRMED THE 15 MILLION FIGURE KEVIN WYNN 26 YEARS OLD WAS ABDUCTED FROM HER HOME IN THE EXCLUSIVE SPANISH TRAILS AREA IN SOUTHWEST LAS VEGAS SHE WAS FOUND BOUND IN A CAR IN A PARKING LOT AT MCCARRAN AIRPORT NEAR HER HOME NO ARRESTS HAVE BEEN MADE FBI AND LAS VEGAS POLICE OFFICIALS SAID THEY WERE FOLLOWING A NUMBER OF LEADS MS WYNN WORKS IN THE MARKETING DEPARTMENT AT THE COMPANY'S FLAGSHIP MIRAGE HOTELCASINO 9307280078 930728 BUSINESS BRIEF WEAN INC BANKRUPTCY COURT JUDGE SETS HEARING ON SALE OF ASSETS WEAN INC SAID A US BANKRUPTCY COURT JUDGE IN PITTSBURGH SET AN AUG 31 HEARING ON THE PROPOSED SALE OF WEAN'S ENGINEERING AND MANUFACTURING ASSETS TO ITS LICENSEE DANIELI & CO OF ITALY FOR 105 MILLION TO 13 MILLION THE PITTSBURGH METAL PROCESSOR SOUGHT CHAPTER 11 PROTECTION FROM CREDITORS JULY 20 THE JUDGE ALSO APPROVED THE USE OF 4 MILLION IN CASH TO ENABLE WEAN TO CONDUCT ITS BUSINESS AS WELL AS THE COMPANY'S REQUEST TO PAY THE WAGES AND WELFARE BENEFITS OF ITS EMPLOYEES AND RETIREES THAT HADN'T BEEN PAID AT THE TIME OF THE FILING IT IS ANTICIPATED THAT THESE PAYMENTS WILL BE MADE DURING THIS WEEK A HEARING IS SCHEDULED FOR SEPT 1 ON WEAN'S REQUEST FOR THE APPROVAL OF DEBTORINPOSSESSION FINANCING THAT HAS BEEN COMMITTED TO THE COMPANY BY CIT GROUP/CREDIT FINANCE INC 9307280077 930728 BUSINESS BRIEF CSX CORP RAIL TRANSPORTATION CONCERN HAS 2NDPERIOD NET INCREASE CSX CORP SAID SECONDQUARTER NET INCOME ROSE 20 FROM A YEAR EARLIER AIDED BY A COSTCUTTING PROGRAM EARNINGS ROSE TO 154 MILLION OR 148 A SHARE FROM 128 MILLION OR 125 A SHARE EXCLUDING A ONETIME CHARGE INCLUDING THE LABORRELATED PRODUCTIVITY CHARGE CSX REPORTED A YEAREARLIER LOSS OF 322 MILLION OR 313 A SHARE REVENUE ROSE 3 TO 226 BILLION FROM 219 BILLION THE RICHMOND VA RAILROAD AND TRANSPORTATION HOLDING COMPANY SAID THAT BECAUSE OF ITS EFFORT TO CONTROL COSTS IT OVERCAME THE ADVERSE EFFECTS OF A STRIKE AGAINST KEY COAL PRODUCERS CONTINUED WEAKNESS IN THE EXPORT COAL MARKET AND THE RECURRING FLOOD CONDITIONS IN THE UPPER MISSISSIPPI RAILROAD OPERATING PROFIT ROSE 6 TO 214 MILLION CONTAINER SHIPPING PROFIT ROSE 23 TO 54 MILLION THE INTERMODAL UNIT PROFIT ROSE 33 TO 12 MILLION AND THE BARGE UNIT'S PROFIT FELL 2 MILLION TO 12 MILLION 9307280076 930728 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE SEN BOREN LEANS AGAINST CLINTON ECONOMIC PLAN COMPLICATING THE BILL'S ALREADYSHAKY PROSPECTS BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SEN DAVID BOREN A SOMETIME SUPPORTER OF PRESIDENT CLINTON'S ECONOMIC PLAN COMPLICATED ITS PROSPECTS FOR THE SECOND TIME THIS YEAR WITH THE ANNOUNCEMENT THAT HE'S LEANING AGAINST IT I'M NOT IN THE YES COLUMN AT THIS POINT THE OKLAHOMA DEMOCRAT SAID TO SECURE HIS VOTE HE SAID A RATHER DRAMATIC CHANGE WOULD HAVE TO BE MADE BY THE PRESIDENT AND DEMOCRATIC LEADERS WHO ARE THRASHING OUT THE FINAL VERSION OF DIFFERING HOUSE AND SENATE BUDGET BILLS THE ADMINISTRATION AND CONGRESSIONAL LEADERS CONTINUED TO PREDICT SUCCESS WE'RE GOING TO PASS THE BILL SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE SAID MEANWHILE DEMOCRATIC NEGOTIATORS MADE ROOM IN THE DEFICITREDUCTION PACKAGE FOR THREE POTENTIALLY COSTLY TAX BREAKS FOR BUSINESS THAT MAY HELP SHORE UP MR CLINTON'S POSITION AMONG OTHER SHAKY LAWMAKERS THEY'VE TENTATIVELY AGREED TO INCREASE THE DEDUCTION FOR SMALL BUSINESSES' EQUIPMENT PURCHASES DURING THE YEAR BY LESS THAN EITHER HOUSE EARLIER APPROVED THOUGH THE LEAD BARGAINERS SEN DANIEL MOYNIHAN AND REP DAN ROSTENKOWSKI DISAGREED ON THE EXACT AMOUNT FOR THE TAX BENEFIT SEN MOYNIHAN PROPOSED A WRITEOFF OF AS MUCH AS 17500 DOWN FROM THE SENATE BILL'S 20500 REP ROSTENKOWSKI BALKED THOUGH HE IS WILLING TO GO BELOW THE SENATE NUMBER THE HOUSE BILL CALLED FOR 25000 NOW IT'S 10000 THE NEGOTIATORS ALSO TENTATIVELY DECIDED TO EASE MR CLINTON'S PROPOSAL TO TIGHTEN AN EXISTING TAX BREAK FOR COMPANIES OPERATING IN PUERTO RICO AND THEY ACCEPTED A CLINTON PROPOSAL TO CUT CAPITALGAINS TAXES FOR NEW INVESTMENTS IN CERTAIN SMALL BUSINESSES IN PART TO HELP SEAL SUPPORT FROM SOME DEMOCRATIC SENATORS SEN BOREN'S CRITICISMS CAME A DAY AFTER MR CLINTON IN CHICAGO ATTACKED GRIDLOCK IN THE DEMOCRATIC CONGRESS THE FACT THAT ONE SENATOR COULD JEOPARDIZE THE PRESIDENT'S ENTIRE EFFORT ILLUSTRATES THE TENUOUS SUPPORT IT HAS BOTH HOUSES INITIALLY PASSED THEIR BILLS BY NARROW MARGINS WITHOUT A SINGLE REPUBLICAN VOTE VICE PRESIDENT AL GORE'S VOTE WAS NEEDED TO BREAK A SENATE TIE THE SENATOR SIGNALED DURING A WHITE HOUSE VISIT LAST SATURDAY THAT HE WAS LEANING AGAINST THE BILL HIS STANCE VASTLY INCREASED THE PRESSURE ON MR CLINTON TO HOLD OTHER SUPPORTERS' VOTES AND TO SWAY THOSE WHO OPPOSED HIM SEN BOREN VOTED FOR THE SENATE BILL LAST MONTH AFTER HOLDING IT HOSTAGE IN THE FINANCE COMMITTEE UNTIL DEMOCRATS AGREED TO KILL MR CLINTON'S PROPOSAL FOR A BROADBASED ENERGY TAX IN HIS SPEECH SEN BOREN SAID THE PRESIDENT'S PLAN DOES NOT DO ENOUGH TO PUT OUR ECONOMIC HOUSE IN ORDER AND CITED IN PARTICULAR THE NEED TO CONTROL SPENDING ON FEDERAL ENTITLEMENT PROGRAMS THE PRESIDENT REJECTED THE SENATOR'S CALL TO HALT THE CURRENT NEGOTIATIONS IN CONGRESS AND HOLD A BIPARTISAN SUMMIT LATER WITH REPUBLICANS THE CONGRESS IS STRANGLED FROM DOING ANYTHING ELSE UNTIL WE PUT THIS BUDGET ISSUE BEHIND US HE SAID DEMOCRATS ARE AIMING TO REACH A COMPROMISE THIS WEEK AND TO PASS IT NEXT WEEK MORE DELAY MR CLINTON WARNED WOULD RESULT IN UNCERTAINTY IN THE ECONOMY MORE CONSUMER CONFIDENCE GOING DOWN SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS SAID WE'RE READY IN RESPONSE TO SEN BOREN'S IDEA FOR A BIPARTISAN BUDGET SUMMIT BUT IN FACT MOST REPUBLICANS OPPOSE ANY PLAN WITH TAX INCREASES AND GOP LEADERS THIS YEAR HAVE DISCOURAGED SOME RANKANDFILE MEMBERS' ATTEMPTS TO REACH OUT TO DEMOCRATS OTHER DEMOCRATS REACTED NEGATIVELY TO SEN BOREN'S REMARKS THE SENATOR A FREQUENT DEMOCRATIC RENEGADE HAS BECOME A PARIAH TO MANY PARTY COLLEAGUES WHO SAY HE'S WILLING TO JEOPARDIZE THE CLINTON PROGRAM JUST TO GET PRESS ATTENTION AND SATISFY HIS STATE'S OIL REFINERS THIS IS JUST DAVID BOREN TRYING TO GET HIMSELF OUT OF MAKING THE TOUGH DECISIONS SAID REP BARNEY FRANK D MASS MEANWHILE MR CLINTON MET WITH SOME HOUSE DEMOCRATIC CONSERVATIVES WHO HAVE ECHOED SEN BOREN'S OPPOSITION TO ENERGY TAXES AND HIS APPEALS FOR MORE SPENDING CUTS TEXAS REP CHARLES STENHOLM URGED MR CLINTON TO REPLACE THE BILL'S ENERGY TAX NOW LIKELY TO BE A FUELSTAX INCREASE WITH SPENDING CUTS BUT DIDN'T ENDORSE SEN BOREN'S CALL FOR A SUMMIT MONTANA SEN MAX BAUCUS A DEMOCRATIC TAX NEGOTIATOR WHO OPPOSES HIGHER FUEL TAXES CIRCULATED A LETTER SIGNED BY FOUR OTHER SENATE DEMOCRATS HE VOTED FOR THE SENATE BILL WHICH CALLED FOR AN INCREASE OF 43 CENTS A GALLON IN GASOLINE TAXES BUT THE ADMINISTRATION AND DEMOCRATIC LEADERS HAVE BEEN TRYING TO SELL AN INCREASE OF AS HIGH AS SEVEN CENTS A GALLON TO RAISE ABOUT 40 BILLION OVER FIVE YEARS THE SIZE AND SHAPE OF ANY ENERGYRELATED TAX IS LIKELY TO BE ONE OF THE LAST PROVISIONS SETTLED THE REVENUE IT WOULD RAISE IS CRITICAL TO HELP OFFSET THE COST OF TAX INITIATIVES FOR BUSINESS AND THE POOR THAT SOME DEMOCRATS ARE SEEKING THOSE PROBLEMS ARE EXPECTED TO BE WORKED OUT IF ONLY BECAUSE MOST DEMOCRATS BELIEVE THAT FAILURE WOULD BE THE WORST OUTCOME POLITICALLY A BOREN DEFECTION WOULD BE VERY SERIOUS GIVEN THE DIFFICULTY OF CONVERTING A PAST FOE TO MAKE UP THE LOSS AND THE POSSIBILITY THAT OTHER LAWMAKERS WOULD FOLLOW SUIT A FEW OTHER PAST SUPPORTERS ARE CONSIDERED SHAKY IN THE HOUSE REP BILLY TAUZIN OF LOUISIANA HAS INDICATED HE'LL OPPOSE THE COMPROMISE LOUISIANA SEN JOHN BREAUX A CONSERVATIVE DEMOCRAT WHO BACKED THE PRESIDENT CAUTIONED AGAINST WRITING OFF SEN BOREN'S VOTE BUT THE WHITE HOUSE TOOK A PESSIMISTIC VIEW AND A CHECK WITH THE OFFICES OF THE 38 HOUSE DEMOCRATS AND SIX SENATE DEMOCRATS WHO OPPOSED THE PRESIDENT INDICATED FEW OPENINGS TO MAKE CONVERTS IN THE SENATE NEVADAN RICHARD BRYAN WAS THE MAIN TARGET PARTLY TO COURT HIM SEN MOYNIHAN WORKED TO EASE MR CLINTON'S PROPOSED CUTBACK IN A BUSINESS DEDUCTION FOR MEALS AND ENTERTAINMENT A DEDUCTION THAT'S IMPORTANT TO THE LAS VEGAS CONVENTION INDUSTRY AND TO SEN MOYNIHAN'S NEW YORK CITY AS WELL BUT THE PROVISION RAISES A LOT OF MONEY AND A RETREAT OF ANY SIZE WOULD BE COSTLY ARIZONA SEN DENNIS DECONCINI ALSO A TARGET SAID IT'S LIKELY HE'LL OPPOSE THE BILL THE FOUR OTHER SENATE FOES SAM NUNN OF GEORGIA FRANK LAUTENBERG OF NEW JERSEY BENNETT JOHNSTON OF LOUISIANA AND RICHARD SHELBY OF ALABAMA ARE CONSIDERED VIRTUALLY CERTAIN TO REMAIN OPPOSED SENS LAUTENBERG BRYAN AND DECONCINI ALL FACE REELECTION RACES NEXT YEAR SEN SHELBY WHO HAS PROVOKED ADMINISTRATION RETRIBUTION BY HIS CONSTANT OPPOSITION SAYS HE'LL CERTAINLY VOTE NO BUT THE PRESIDENT LAST WEEK REESTABLISHED CONTACT WITH THE PARTY RENEGADE FOR THE FIRST TIME IN MONTHS AND AT A PARTICULARLY POIGNANT MOMENT ON THE NIGHT AFTER THE SUICIDE OF VINCE FOSTER MR CLINTON'S CHILDHOOD FRIEND AND A TOP AIDE THE PRESIDENT WAS VISITING THE FOSTER FAMILY'S GEORGETOWN TOWNHOUSE AND LEARNED THAT SEN SHELBY LIVED NEXT DOOR IN KHAKIS AND POLO SHIRT HE WALKED OVER AND TALKED WITH THE SENATOR FOR NEARLY AN HOUR MOSTLY ABOUT MR FOSTER IT TOOK A LOT OF CLASS ON HIS PART SEN SHELBY SAID HE WAS OBVIOUSLY VERY GRIEVED SEPARATELY MR CLINTON WAS GUILTY JUST AS HIS CRITICS HAVE BEEN OF MISREPRESENTING THE EFFECT ON SMALL BUSINESSES OF HIS PROPOSED TAX INCREASES ON UPPERINCOME AMERICANS AT ONE NEWS CONFERENCE THIS WEEK HE SAID SMALLBUSINESS OWNERS WOULD BE ABLE TO ESCAPE THE TAX INCREASES IF THEY REINVEST IN THEIR BUSINESSES THAT'S NOT SO UPPERINCOME OWNERS OF WHAT ARE KNOWN AS SUBCHAPTER S CORPORATIONS THE PROFITS OF WHICH ARE TAXED AT INDIVIDUAL INCOMETAX RATES FACE HIGHER INCOMETAX RATES ON THEIR PROFITS WHETHER THEY REINVEST THEM OR TAKE THEM OUT OF THE BUSINESS GENE SPERLING A CLINTON AIDE SAID THE PRESIDENT MEANT TO REFER TO THE FACT THAT CAPITALGAINS TAX RATES AREN'T GOING UP HE DIDN'T INTEND TO SUGGEST THAT REINVESTMENT WOULD BE A VEHICLE FOR SOMEBODY TO GET OUT OF PAYING HIGHER TAXES ON WAGES OR OTHER TAXABLE INCOME ABOVE 140000 HE SAID AFTER SPEAKING WITH THE PRESIDENT HE REGRETS IF ANYBODY MISTOOK HIS STATEMENTS TO MEAN THAT 9307280075 930728 BUSINESS BRIEF WESTERN DIGITAL CORP PRICING PRESSURES ARE CITED FOR FISCAL 4THQUARTER LOSS WESTERN DIGITAL CORP SAID RELENTLESS PRICING PRESSURES IN THE DISKDRIVE INDUSTRY LED TO A LOSS OF 378 MILLION FOR ITS FISCAL FOURTH QUARTER THE LOSS OF 107 A SHARE CAME ON REVENUE OF 2852 MILLION FOR THE QUARTER ENDED JUNE 30 WESTERN DIGITAL BASED IN IRVINE CALIF HAD NET INCOME OF 41 MILLION OR 13 CENTS A SHARE ON REVENUE OF 2935 MILLION IN THE YEAREARLIER QUARTER THE COMPANY WHICH MANUFACTURES AND MARKETS COMPUTER DISKDRIVE PRODUCTS REPORTED A NET LOSS FOR FISCAL 1993 OF 251 MILLION OR 79 CENTS A SHARE ON REVENUE OF 12 BILLION COMPARED WITH A NET LOSS OF 729 MILLION OR 249 A SHARE ON REVENUE OF 9383 MILLION IN FISCAL 1992 9307280074 930728 DIVIDEND NEWS MERCK & CO MERCK & CO A RAHWAY NJ PHARMACEUTICAL CONCERN BOOSTED ITS QUARTERLY DIVIDEND 12 IN LINE WITH ITS USUAL PATTERN OF ANNUAL INCREASES THE NEW DIVIDEND OF 28 CENTS A SHARE UP FROM 25 CENTS IS PAYABLE OCT 1 TO SHARES OF RECORD SEPT 9 MERCK SHARES WHICH HAVE FALLEN SHARPLY THIS YEAR AMID SPECULATION ABOUT THE ADVERSE IMPACT OF HEALTHCARE REFORM WERE UNCHANGED AT 32125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EVEN THOUGH MERCK TOOK A 775 MILLION PRETAX RESTRUCTURING CHARGE IN THE SECOND QUARTER A SPOKESWOMAN NOTED THAT OPERATING EARNINGS ROSE IN THE QUARTER RAISING THE DIVIDEND REFLECTS OUR GENERAL PHILOSOPHY OF RETURNING A PORTION OF PROFITS TO SHAREHOLDERS BY GENERALLY INCREASING DIVIDENDS IN LINE WITH EARNINGS GROWTH SHE SAID 9307280073 930728 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9307280072 930728 US EDUCATION PANEL PLANS A COLLEGE EXAM TO ESTABLISH STANDARD WASHINGTON THE NATIONAL EDUCATION GOALS PANEL VOTED TO DEVISE A NEW EXAM TO MEASURE WHAT US COLLEGE STUDENTS KNOW THE POSTSECONDARY SCHOOL ASSESSMENT EXAM WOULD BE USED BY POLICYMAKERS AND ADMINISTRATORS TO SET STANDARDS FOR US COLLEGES NOT TO EVALUATE INDIVIDUAL STUDENTS OR SCHOOLS ACCORDING TO PANEL OFFICIALS BIDS TO DEVELOP THE TEST ALREADY ARE BEING EVALUATED AND THE EFFORT SHOULD BE COMPLETED WITHIN THE NEXT 18 MONTHS TO TWO YEARS ACCORDING TO SAL CORRALLO THE PANEL'S PROJECT DIRECTOR HE SAID HE EXPECTS THAT THE PANEL WILL RECEIVE ROUGHLY 2 MILLION FOR THE PROJECT DURING THE FISCAL YEAR BEGINNING OCT 1 THE PANEL HAS NO STATUTORY AUTHORITY AND CAN ONLY RECOMMEND EDUCATION POLICY CHANGES BUT IT DOES HAVE THE EAR OF PRESIDENT CLINTON A FORMER COCHAIRMAN OF THE NATIONAL GOVERNORS ASSOCIATION WHICH WAS THE DRIVING FORCE BEHIND ITS CREATION MR CORRALLO SAID THE EXAM WILL DEAL WITH SPECIFIC SKILLS RELATED TO WORK AND CITIZENSHIP MARTIN ORLAND ACTING EXECUTIVE DIRECTOR OF THE PANEL ACKNOWLEDGED THE POSSIBILITY OF FUTURE CONFLICT IN THE BIPARTISAN PANEL CONCERNING HOW CITIZENSHIP WOULD BE MEASURED THE PANEL PLANS TO LAUNCH AN AWARENESS CAMPAIGN THIS FALL THAT WILL DRAW ATTENTION TO ITS WORK AND ADDRESS POTENTIAL OPPOSITION 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 9307280071 930728 REAL DANGER IN ROSTY AFFAIR IS PROSECUTOR ABUSE BY ALBERT R HUNT WASHINGTON JAY STEPHENS WAS MORE OMNIPRESENT HERE LAST WEEK THAN DAVID GERGEN OR NEWT GINGRICH TUESDAY NIGHT HE WAS ON ABC'S NIGHTLINE PREDICTING THAT REP DAN ROSTENKOWSKI WOULD BE INDICTED ON AN ALLEGED CASHFORSTAMPS SCANDAL HE ALSO CHARGED THAT THE SUM OF MONEY INVOLVED WAS MUCH LARGER THAN HAD BEEN REPORTED THE NEXT NIGHT HE APPEARED ON CNN'S CROSSFIRE TO PEDDLE A SIMILAR LINE THEN ON THURSDAY MR STEPHENS PRIVATELY HUDDLED WITH CONGRESSIONAL REPUBLICANS AND STAFFERS AS THE GOP UNSUCCESSFULLY SOUGHT RELEASE OF STILLSECRET TESTIMONY FROM LAST YEAR'S HOUSE PROBE INTO THE ROSTENKOWSKI MATTER THE CURRENT US ATTORNEY OPPOSED THE RELEASE WARNING IT COULD JEOPARDIZE HIS INVESTIGATION THIS MIGHT ALL BE PERFECTLY ROUTINE IF JAY STEPHENS WERE AN ELECTED OFFICIAL OR EVEN A POLITICAL STRATEGIST HE'S NEITHER INSTEAD HE'S THE FORMER US ATTORNEY FOR THE DISTRICT OF COLUMBIA WHO LAUNCHED THE ROSTENKOWSKI INVESTIGATION SEVERAL YEARS AGO HE'S ALSO AN ASPIRANT FOR THE REPUBLICAN SENATE NOMINATION IN VIRGINIA NEXT YEAR THERE'S A VERY CLEAR CORRELATION BETWEEN THESE TWO FACTS JAY STEPHENS'S COMMENTS WERE INAPPROPRIATE FOR ANY FORMER PROSECUTOR IT WAS OUTRAGEOUS AND UNPROFESSIONAL CHARGES JOSEPH DI GENOVA WHO SERVED AS THE US ATTORNEY HERE UNDER PRESIDENT REAGAN FORMER US ATTORNEYS SHOULDN'T BE RUNNING AROUND POLITICIZING CASES STEPHENS ALSO WAS TALKING ABOUT INFORMATION HE GOT FROM THE INVESTIGATION THAT SHOULD NEVER PASS FROM THE LIPS OF A FORMER US ATTORNEY WHEN A CASE IS STILL UNDER INVESTIGATION MR DI GENOVA REPRESENTED REP AUSTIN MURPHY ONCE A TARGET OF THE SAME INVESTIGATION BUT APPARENTLY NO LONGER WHATEVER THE ROSTENKOWSKI CASE SAYS ABOUT POLITICAL MORES IT ALSO SAYS A LOT ABOUT PROSECUTORIAL ABUSE IN WHAT IS AN INCREASING PATTERN IN THESE CASES MR STEPHENS AND OTHER PROSECUTORS HAVE ENGAGED IN A PATTERN OF LEAKS AND INNUENDOES AIMED AT UNDERMINING SOMEONE WHO HAS YET TO BE CHARGED LAST DECEMBER FOR EXAMPLE THREE OF REP ROSTENKOWSKI'S AIDES WERE SUBPOENAED TO APPEAR BEFORE A GRAND JURY WITHIN A WEEK THIS WAS REPORTED BY THE ASSOCIATED PRESS EARLIER LAST MONTH HIS DAUGHTERS WERE SUBPOENAED TO TESTIFY IN THE GRAND JURY PROBE THE SUBSTANCE OF WHAT THEY WERE ASKED SOON SURFACED IN THE CHICAGO PAPERS THERE WERE ONLY THREE POSSIBLE SOURCES THE DAUGHTERS THEIR LAWYERS OR THE GOVERNMENT THE ODDS THAT IT WASN'T THE LATTER ARE SOMEWHAT GREATER THAN THE NEW YORK METS' CHANCES OF WINNING THE WORLD SERIES THE MOST EGREGIOUS ABUSE CAME THIS WEEK FITTINGLY FROM MR STEPHENS WHEN ASKED ABOUT USING PRIVILEGED INFORMATION TO DISCREDIT HIS OLD TARGET THE FORMER US ATTORNEY FIRST ASKS TO TALK OFF THE RECORD WHEN TURNED DOWN HE THEN INSISTS HE NEVER PREJUDGED MR ROSTENKOWSKI HERE MR PROSECUTOR IS WHAT YOU SAID ON NIGHTLINE WHEN ASKED BY TED KOPPEL IF AN INDICTMENT OF THE CONGRESSMAN WAS INEVITABLE MY SENSE IS IT'S SIMPLY A MATTER OF TIME AT THIS POINT THAT'S NOT PREJUDGING THEN WHEN ASKED WHY THE POWERFUL LAWMAKER WOULD COMMIT A CRIME FOR THE REPORTED MEAGER 21000 MR STEPHENS INSISTED THE ACTUAL AMOUNT MIGHT INSTEAD RANGE AS HIGH AS HUNDREDS OF THOUSANDS OF DOLLARS IN AN INTERVIEW MR STEPHENS INSISTS HE WASN'T USING INFORMATION HE GATHERED AS PROSECUTOR OF THIS CASE BEFORE HE WAS REPLACED THIS SPRING INSTEAD HE CLAIMS THAT HIS STATEMENT WAS BASED ON MAGAZINE AND NEWSPAPER ARTICLES EVEN IF TRUE HE PROBABLY LEAKED A LOT OF THAT INFORMATION IN THE FIRST PLACE MR STEPHENS ATTRIBUTES MR DI GENOVA'S CRITICISM TO BAD BLOOD BETWEEN THE TWO FORMER REPUBLICAN US ATTORNEYS YET OTHER CRIMINALLAW EXPERTS CONCUR STEPHENS'S CONDUCT WAS HIGHLY IRRESPONSIBLE SAYS SETH WAXMAN A KNOWLEDGEABLE CRIMINAL DEFENSE LAWYER WHEN MR STEPHENS IS ASKED TO SUGGEST A LEGAL EXPERT TO DEFEND HIS ACTIONS HE CAN'T MR STEPHENS WHO CLEARLY HAS BEEN USING INFORMATION COLLECTED WHILE ON THE PUBLIC PAYROLL IS SKATING ON ETHICAL AND PERHAPS EVEN LEGAL THIN ICE BY LAW THE JUSTICE DEPARTMENT SAYS DISCLOSURES IN CRIMINAL CASES SHOULD INCLUDE ONLY INCONTROVERTIBLE FACTUAL MATTERS AND SHOULD NOT INCLUDE SUBJECTIVE OBSERVATIONS THE WASHINGTON BAR FORBIDS A PROSECUTOR FROM EXTRAJUDICIAL COMMENTS WHICH SERVE TO HEIGHTEN CONDEMNATION OF THE ACCUSED I'VE COVERED DANNY ROSTENKOWSKI FOR MORE THAN 20 YEARS I LIKE HIM YET I'M AMBIVALENT ONE CAN'T BUT BE STRUCK WHEN FORMER PATRONAGE PALS SUCH AS HOUSE POSTMASTER ROBERT ROTA SAY THEY PAID OFF THE POWERFUL LAWMAKER EVEN IF THEY'RE SAYING IT TO SAVE THEIR OWN SKINS AND AS DAVID ROGERS AND JEFFREY BIRNBAUM REPORTED IN THE JOURNAL LAST WEEK REP ROSTENKOWSKI IS A PRODUCT OF AN OLD SCHOOL OF POLITICS THAT TOLERATED MANY PRACTICES THAT ARE DEEMED UNACCEPTABLE TODAY BUT IT'S ALSO PUZZLING WHY THIS VERY SMART POLITICIAN WOULD HAVE RISKED EVERYTHING FOR SUCH PENNYANTE STUFF MOREOVER LAST YEAR MR ROSTENKOWSKI COULD HAVE RETIRED WALKING AWAY WITH OVER 1 MILLION IN LEFTOVER CAMPAIGN CONTRIBUTIONS AND AS A FORMER CONGRESSMAN ALMOST SURELY ESCAPING ANY PROSECUTION IN CONNECTION WITH THE POST OFFICE BUT THERE'S A LARGER ISSUE HERE MORE DISTURBING THAN HIS GUILT OR INNOCENCE MR STEPHENS AND HIS CRONIES HAVE SYSTEMATICALLY SOUGHT TO POISON THE ENVIRONMENT FOR REP ROSTENKOWSKI TO RECEIVE A FAIR HEARING THAT THREATENS DANNY ROSTENKOWSKI IT ALSO THREATENS ME AND YOU MR HUNT IS THE JOURNAL'S WASHINGTON BUREAU CHIEF SEE RELATED LETTER LETTERS TO THE EDITOR ARROGANCE OF POWER ENGENDERS CORRUPTION WSJ AUG 2 1993 9307280070 930728 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN WHAT WOULD HAPPEN IF CONGRESS REJECTS THE TAX BILL THE FATE OF PRESIDENT CLINTON'S ECONOMIC PLAN REMAINS UNCLEAR AS HOUSE AND SENATE CONFEREES TRY TO AGREE ON A COMPROMISE VERSION CLINTON LOYALISTS ARGUE THAT DEFEAT WOULD LEAD TO HIGHER INTEREST RATES AND A WEAKER ECONOMY BUT SOME INVESTMENT MANAGERS DISAGREE THEY FEAR THE PLAN'S PROPOSED TAX INCREASES WOULD TORPEDO THE STRUGGLING ECONOMY AND LEAD TO EVEN BIGGER BUDGET DEFICITS SO KILL THE BILL THEY SAY AND LOBBY FOR A NEW ONE WITH BIGGER SPENDING CUTS AND SMALLER TAX INCREASES THIS IS A REALLY BAD BILL SAYS GLENN GREENBERG OF CHIEFTAIN CAPITAL MANAGEMENT HE AND OTHERS WORRY HIGHER TAXES WOULD BE USED TO PAY FOR MORE GOVERNMENT SPENDING NOT DEFICIT CUTTING ALTHOUGH SOME FEAR REJECTING THE BILL WOULD JOLT THE BOND MARKETS MOST CONTEND ANY BONDMARKET SETBACK WOULD BE SHORTLIVED EDWARD HYMAN OF ISI GROUP PREDICTS BOND YIELDS WILL FALL IN COMING MONTHS EVEN IF THE BILL IS DEFEATED MARRIAGE WILL COST MORE FOR SOME COUPLES IF THE TAX BILL PASSES THANKS TO THE BIZARRE MARRIAGE PENALTY TAX MANY TWOINCOME MARRIED COUPLES ALREADY OWE MORE TAXES THAN THEY WOULD IF THEY WERE SINGLE AND LIVING TOGETHER BUT UNDER THE PROPOSED NEW LAW THE MARRIAGE PENALTY WOULD BE EVEN WORSE FOR NUMEROUS UPPERINCOME MARRIED COUPLES SAYS CLINT STRETCH OF DELOITTE & TOUCHE IN WASHINGTON SUPPOSE SUSAN AND STEVE EACH EARNING 120000 AND WITH TYPICAL ITEMIZED DEDUCTIONS GET MARRIED THIS YEAR UNDER CURRENT LAW THEY WOULD OWE ABOUT 3200 MORE IN TAXES FOR 1993 THAN THEY WOULD AS TWO SINGLE FILERS DELOITTE SAYS UNDER THE PROPOSED NEW LAW THEIR MARRIAGE PENALTY WOULD SOAR TO ABOUT 5800 THIS YEAR AND 6300 IN 1994 THE TREASURY SAYS THAT'S UNUSUAL MOST PEOPLE AFFECTED BY THE PENALTY WOULD BE HURT MUCH LESS ELIMINATING THE PENALTY WOULD BE COSTLY TO THE TREASURY THUS CHANCES OF REWRITING THE LAW ANY TIME SOON ARE SLIM OR NONE SAYS G WILLIAM CLAPP OF BESSEMER TRUST CO ALAS THE PENALTY IS A FACT OF LIFE RICHER REWARDS GO TO INFORMANTS WHO GIVE THE IRS VALUABLE TIPS PROVIDE THE IRS WITH INFORMATION THAT HELPS IT COLLECT MORE TAXES FROM EVADERS AND YOU MIGHT EARN A HANDSOME REWARD ANONYMITY IS GUARANTEED IN THE YEAR ENDED LAST SEPT 30 THE IRS PAID TIPSTERS 17 MILLION THAT WAS UP 76 FROM THE PREVIOUS YEAR AND IS THE FOURTH HIGHEST AMOUNT ON RECORD THE AVERAGE REWARD OVER THE PAST 25 YEARS 1503 THE IRS PAYS ONLY FOR SPECIFIC INFORMATION NOT MERE SUSPICIONS THE SIZE OF EACH REWARD DEPENDS ON HOW SPECIFIC THE TIP IS AND HOW HELPFUL THE IRS DECIDES IT WAS IN COLLECTING MORE TAXES INDEED FEW INFORMANTS RECEIVE ANY REWARD AT ALL THE IRS HAS RECEIVED 165905 CLAIMS OVER THE PAST 25 YEARS OR SO BUT HAS PAID REWARDS ON ONLY 14102 IRS OFFICIALS DEFEND THE PROGRAM AS AN IMPORTANT SOURCE OF INTELLIGENCE THEY SAY TIPSTERS HAVE ENABLED THEM TO COLLECT 107 BILLION IN ADDITIONAL TAXES THAT INCLUDES 837 MILLION LAST YEAR ALONE AN INCREASE OF 43 FROM THE PREVIOUS YEAR'S COLLECTION BASED ON INFORMANTS' TIPS REMEMBER AN IRS OFFICIAL EMPHASIZES ALL REWARDS ARE FULLY TAXABLE MIDWEST FLOOD VICTIMS RECEIVE MORE TIME TO FILE RETURNS THE IRS ALLOWS VICTIMS UNTIL OCT 15 TO FILE MOST RETURNS OR PAY BILLS THAT WOULD HAVE BEEN DUE ON OR AFTER JUNE 30 AND BEFORE OCT 15 THIS EXTENSION INCLUDES ESTIMATED TAX PAYMENTS THE IRS WON'T CHARGE PENALTIESBUT IT WILL CHARGE INTEREST THE IRS VOWS TO GRANT TAXEXEMPT STATUS MORE QUICKLY TO GROUPS FORMED TO AID FLOOD VICTIMS GROUPS WILL GET EXPEDITED SERVICE BY WRITING FLOOD DISASTER ON THE TOP OF THEIR APPLICATION THE IRS ALSO RELAXES ITS USUAL RESTRICTIONS ON AGENCIES HELPING THEIR OWN EMPLOYEES CHARITIES AND TAXLAW COMPLIANCE RETURN MONDAY TO A HOUSE WAYS AND MEANS SUBCOMMITTEE FOR A SECOND HEARING CHAIRMAN PICKLE D TEXAS EXPECTS TO FIND SOME ABUSES OF PUBLIC TRUST AND OUR LAWS LAWMAKERS ALSO WILL ASK THE IRS ABOUT ENFORCEMENT PROBLEMS COLLEGES AND UNIVERSITIES URGE THE IRS TO REVISE AUDIT GUIDELINES AT AN IRS HEARING TODAY SCHOOL REPRESENTATIVES ARE EXPECTED TO OBJECT TO PARTS OF AUDIT GUIDELINES PROPOSED EARLIER THIS YEAR SOME COLLEGES SEEK REVISIONS GOVERNING WHEN INCOME FROM SUCH SOURCES AS UNIVERSITY BOOKSTORES AND RESEARCH ACTIVITIES REPRESENTS TAXABLE UNRELATED BUSINESS INCOME THEY ALSO FEAR IRS EXAMINERS WILL REQUIRE VOLUMINOUS AND UNNECESSARY DOCUMENTATION RICK SPEIZMAN OF PRICE WATERHOUSE SAYS THE FINAL GUIDELINES THAT EMERGE WILL BE VERY IMPORTANT BECAUSE THEY WILL BE THE ROAD MAP FOR IRS AGENTS EXAMINING COLLEGES AND UNIVERSITIES HE SAYS THOSE GUIDELINES ALSO SHOULD HELP SCHOOLS TAKE STEPS TO PREVENT IRS PROBLEMS FROM ARISING RANDALL SNOWLING OF DELOITTE & TOUCHE PREDICTS THE IRS PROBABLY WILL DO SOME REWRITING IN REACTION TO TODAY'S HEARING THE IRS SAYS IT WANTS TO HEAR WHAT IS SAID TODAY BEFORE CONSIDERING MAKING ANY REVISIONS BRIEFS AN EXPENSIVE TRIP DOWN MEMORY LANE FOR 4995 AN ARKANSAS COMPANY OFFERS A DELUXE VERSION OF A REPRODUCTION OF AN INCOME TAX RETURN FROM 1913 NEW WASHINGTON BUZZWORD CONFERENCEABLE REFERRING TO SUBJECTS THAT MAY BE RAISED DURING THE HOUSESENATE CONFERENCE COMMITTEE WORKING ON THE TAX BILL 9307280069 930728 BUSINESS BRIEF DIGITAL EQUIPMENT CORP AGREEMENTS WITH 3 FIRMS INCREASE PC DISTRIBUTION DIGITAL EQUIPMENT CORP SAID IT EXPANDED ITS US PERSONAL COMPUTER CHANNELS BY SIGNING MARKETING PACTS WITH TECH DATA CORP OF CLEARWATER FLA GATES/FA DISTRIBUTING INC OF GREENVILLE SC AND A GENERAL MOTORS UNIT EDS CORP OF PLANO TEXAS THE AGREEMENTS BRING THE NUMBER OF DISTRIBUTION POINTS FOR DIGITAL'S PERSONAL COMPUTER PRODUCTS TO MORE THAN 35000 US SITES INCLUDING ONES UNDER AN ALLIANCE DIGITAL RECENTLY ANNOUNCED WITH MICROAGE COMPUTER CENTERS INC TEMPE ARIZ THE COMPUTER MAKER SAID DIGITAL BASED IN MAYNARD MASS SAID ITS PACTS WITH TECH DATA AND GATES/FA EXPAND ITS DISTRIBUTOR AND WHOLESALER MARKETING CHANNELS THE COMPANY ADDED THAT WITH ITS EDS PACT IT IS MOVING INTO THE SYSTEM INTEGRATORS SEGMENT OF THE PC MARKET SALES FROM THE EDS PACT WILL COMPLEMENT PC SALES VIA DIGITAL'S OWN SYSTEM INTEGRATION BUSINESS THE COMPANY ADDED 9307280068 930728 INTERNATIONAL BRIEF DEUTSCHE BANK AG ACCOUNTING RULES SLOWED HALFYEAR EARNINGS GROWTH SHARPLY HIGHER PROVISIONS FOR LENDING RISKS IN GERMANY'S DETERIORATING ECONOMY AND NEW MORE TRANSPARENT ACCOUNTING RULES SLOWED THE PACE OF HALFYEAR EARNINGS GROWTH AT DEUTSCHE BANK AG UNDER NEW ACCOUNTING METHODS STIPULATED BY THE EUROPEAN COMMUNITY THE FULL GROUP OPERATING PROFIT AT GERMANY'S LARGEST BANK IN FRANKFURT CLIMBED 13 OR 286 MILLION MARKS 1658 MILLION TO 256 BILLION MARKS IN THE FIRST HALF COMPARED WITH SIXTWELFTHS OF THE PREVIOUS FULLYEAR RESULTS GERMAN BANKS UNLIKE THEIR US AND UK COUNTERPARTS CONVENTIONALLY PUBLISH THEIR INTERIM RESULTS AGAINST A CORRESPONDING FRACTION OF THE PREVIOUS YEAR DEUTSCHE BANK YESTERDAY DIDN'T RELEASE A DIRECT COMPARISON FIGURE 9307280067 930728 BUSINESS BRIEF TSX CORP TEXSCAN PARENT POSTS PROFIT FOR 4TH PERIOD LOSS FOR YEAR TSX CORP EL PASO TEXAS POSTED A QUARTERLY PROFIT FOR THE FIRST TIME IN A YEAR AND SAID ITS PRIMARY LONGTERM LENDER AGREED TO RESCHEDULE 26 MILLION IN PRINCIPAL PAYMENTS ORIGINALLY DUE IN FISCAL 1994 TO BE DUE IN OCTOBER 1999 THE STRUGGLING PARENT OF TEXSCAN CORP A MAKER OF ELECTRONIC PRODUCTS FOR THE CABLE TELEVISION INDUSTRY ALSO NOTED THAT ITS CASH DECREASED BY 14 MILLION TO 42 MILLION DURING FISCAL 1993 FOR THE FOURTH QUARTER ENDED APRIL 30 TSX REPORTED EARNINGS OF 332000 OR 15 CENTS A SHARE ON SALES OF 128 MILLION COMPARED WITH PROFIT OF 86000 OR FOUR CENTS A SHARE ON SALES OF 133 MILLION A YEAR EARLIER FOR THE YEAR TSX HAD LOSSES OF 6 MILLION OR 276 A SHARE INCLUDING A 27 MILLION RESTRUCTURING CHARGE SALES FELL 7 TO 398 MILLION FROM NEARLY 43 MILLION BECAUSE OF UNCERTAINTY OF POSSIBLE REGULATION CHANGES IN THE CABLE INDUSTRY THE COMPANY SAID 9307280066 930728 MARKETING & MEDIA CELLULARPHONE PACT IS SET BY INDEPENDENT TELECOMMUNICATIONS TERMS WEREN'T DISCLOSED CELLULAR CARRIERS CAN BUY ITN'S SERVICES OR LINK EXISTING ROAMING NETWORKS TO ITN'S NETWORK TO MAKE A NATIONWIDE NET ITN BASED IN KANSAS CITY MO OPERATES A NATIONWIDE SIGNALING SYSTEM 7 NETWORK THAT SPEEDS CALLS THROUGH LOCAL AND LONGDISTANCE PHONE NETWORKS AND THROUGH OPERATOR SERVICE PROVIDERS THE TRADE GROUP SAID THE SERVICE EXPECTED TO BE AVAILABLE LATER THIS YEAR ELIMINATES THE NEED FOR CELLULAR SUBSCRIBERS TO MAKE PRIOR ARRANGEMENTS IF THEY WANT TO RECEIVE CALLS WHILE TRAVELING TO ACTIVATE THE SEAMLESS ROAMING SERVICE A CUSTOMER MERELY NEEDS TO TURN ON HIS OR HER PHONE THE LOCAL CELLULAR SYSTEM RECEIVES THE TELEPHONE'S DATA SIGNAL DETERMINES IT ISN'T LOCAL AND THEN USES THE SIGNALING NETWORK TO OBTAIN THE CUSTOMER'S IDENTITY AND CALLING FEATURES SUCH AS VOICE MAIL AND CALL WAITING IT ALSO ALERTS THE HOME SYSTEM TO FORWARD THE SUBSCRIBER'S CALLS EARLIER THIS WEEK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT PLANS TO TEST A SIMILAR SIGNALING SYSTEM TO PROVIDE SEAMLESS ROAMING FOR CELLULAR CUSTOMERS AT&T EXPECTS ITS TEST TO BEGIN THIS FALL 9307280065 930728 BAROID CORP JOINS WITH BJ SERVICES CORP TO EXPAND OIL SERVICES HOUSTON BAROID CORP AND BJ SERVICES CORP SAID THEY FORMED A BUSINESS ALLIANCE TO PROVIDE COMBINED SERVICES TO THEIR CUSTOMERS THE MOVE BY THE TWO HOUSTONBASED OILFIELD SERVICES COMPANIES CONTINUES A TREND OF OPERATORS FORMING PARTNERSHIPS WITH SERVICE COMPANIES TO ENHANCE EFFICIENCY THE TWO COMPANIES SAY THEY PLAN TO OFFER A GREATER RANGE OF DRILLING COMPLETION CEMENTING AND STIMULATION SERVICES THE AGREEMENT INCLUDES JOINT MARKETING AND SERVICE DELIVERY AND MAY EXTEND TO SHARING RESOURCES AND COMBINING RESEARCH AND DEVELOPMENT EFFORTS ON SELECT PROJECTS THE COMPANIES SAID THE COMPANIES ALSO PLAN TO CROSS TRAIN THEIR RIGSITE TEAMS AND SHARE RESOURCES AND FACILITIES ON DRILLING PROJECTS BY COMBINING PURCHASING AND EQUIPMENT PROCUREMENT OPERATIONS THE PACT DOESN'T INCLUDE ANY EQUITY SWAP OR OWNERSHIP CHANGE NOR IS ONE PLANNED SPECIFICALLY BAROID WILL PROVIDE DRILLING FLUIDS DIRECTIONAL DRILLING SERVICES MUD LOGGING DIAMOND DRILL BITS AND CORING SERVICES TO THE ALLIANCE BJ SERVICES WILL PROVIDE PRESSURE PUMPING SERVICES INCLUDING CEMENTING AND HYDRAULIC FRACTURING AS WELL AS COILED TUBING AND CASING AND TUBING SERVICES 9307280064 930728 REALESTATE BROKERS HARASS DISCOUNT RIVALS FREQUENTLY STUDY SAYS WASHINGTON REALESTATE BROKERS FREQUENTLY HARASS OR DISCRIMINATE AGAINST ALTERNATIVE COMPETITORS A PRACTICE THAT ENDS UP HURTING HOME BUYERS AND SELLERS A CONSUMER GROUP SAID THE CONSUMER FEDERATION OF AMERICA RELEASED A 17CITY STUDY OF 85 DISCOUNT BROKERS AND BUYERBROKERS WHO REPRESENT ONLY HOME BUYERS SHOWING THAT THE TRADITIONAL BROKERS' PRACTICES FORCES BOTH BUYERS AND SELLERS TO PAY HIGHER COSTS STEPHEN BROBECK CFA'S EXECUTIVE DIRECTOR SAID THAT HOME BUYERS WHO ARE DENIED ACCESS TO BUYERBROKERS PAY AS MUCH AS 5 MORE FOR A HOUSE WHILE CONSUMERS WHO CAN'T USE DISCOUNT BROKERS PAY A COMMISSION THAT IS ONE TO THREE PERCENTAGE POINTS HIGHER THAN WHAT THE DISCOUNT BROKERS OFFER AMONG THE POLLED DISCOUNTERS AND BUYERBROKERS 60 REPORTED DISPARAGEMENT OF THEIR BUSINESS BY REGULAR BROKERS 45 REPORTED RECEIVING ANGRY CRITICISM OR PERSONAL THREATS FROM REGULAR BROKERS 35 REPORTED PIRATING OF THEIR CLIENTS AND REFUSAL BY THE MEDIA TO ACCEPT THEIR ADVERTISEMENTS 34 REPORTED LOST OR CANCELED LISTINGS DUE TO DISPARAGEMENT AND 30 REPORTED THAT REGULAR BROKERS REFUSED TO SHOW HOMES LISTED BY DISCOUNT BROKERS IN ADDITION DISCOUNT BROKERS REPORTED MORE DISCRIMINATION THAN BUYERBROKERS THE CONSUMER GROUP SAID HOWEVER THAT THE DISCRIMINATION PRACTICES APPEAR TO HAVE LESSENED DURING THE PAST 15 YEARS INCLUDING THIS PAST YEAR AND THE GROUP URGED LOCAL REALESTATE BOARDS STATE REALESTATE COMMISSIONERS AND THE FEDERAL TRADE COMMISSION TO WORK HARDER TO ELIMINATE THE DISCRIMINATORY ACTIVITY 9307280063 930728 HUD OUTLINES FIVEYEAR PLAN TO SELL GOVERNMENTOWNED APARTMENT PROJECTS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OUTLINED AN AMBITIOUS PLAN TO GET RID OF THOUSANDS OF APARTMENTS IT OWNS AS A RESULT OF FORECLOSING ON GOVERNMENTINSURED PROPERTIES A PLAN THAT COULD COST AS MUCH AS 4 BILLION OVER FIVE YEARS OFFICIALS SAID THE DEPARTMENT SENT CONGRESS LEGISLATION DESIGNED TO MAKE IT MUCH EASIER TO SELL THE GROWING BACKLOG OF APARTMENT PROJECTS PRIMARILY BY CHANGING RENTSUBSIDY REQUIREMENTS THE DEPARTMENT OWNS SOME 172 PROJECTS WITH 29000 UNITS WITH THE NUMBERS PROJECTED TO RISE RAPIDLY IN COMING YEARS PRESIDENT CLINTON EARLIER THIS YEAR PROPOSED SPENDING ABOUT 17 BILLION OVER FIVE YEARS TO HELP HUD DISPOSE OF THE PROPERTIES WHILE DEPARTMENT OFFICIALS SAID THEY STILL ARE WORKING OUT HOW TO COME UP WITH THE REST OF THE MONEY TO FUND THE PROPOSAL THEY SUGGESTED THAT MUCH OF IT COULD COME FROM SAVINGS REALIZED FROM REDUCED HOLDING COSTS AS THE INVENTORY OF HUDOWNED PROPERTIES IS SOLD BUT CUTS IN OTHER PROGRAMS ALSO MAY BE NECESSARY FOR FISCAL 1994 WHICH BEGINS OCT 1 THE AGENCY WOULD NEED ABOUT 550 MILLION ALMOST 300 MILLION MORE THAN WAS APPROVED BY THE HOUSE OFFICIALS SAID THEY PLAN TO TAKE THEIR REQUEST TO THE SENATE WHICH HASN'T ACTED ON HUD APPROPRIATIONS THE LEGISLATION'S GOAL IS TO CLEAR THE BACKLOG BY 1998 THE DEPARTMENT WANTS TO SELL THE PROJECTS BECAUSE THEY ARE EXPENSIVE TO OWN HOLDING COSTS FOR 1992 FOR EXAMPLE WERE 250 MILLION OFFICIALS ALSO ADMIT THEY AREN'T GOOD AT OWNING AND MANAGING APARTMENT COMPLEXES WHICH OFTEN CONTINUE TO DETERIORATE UNDER HUD'S CARE HENRY CISNEROS HUD SECRETARY SAID HE HAD LITTLE CHOICE BUT TO TACKLE CLEARING OUT THE BACKLOG THIS IS THE TIP OF A BIG ICEBERG DIRECTLY IN OUR PATH HE SAID IN RECENT YEARS THE DEPARTMENT HASN'T SOLD THE PROPERTIES LARGELY BECAUSE THE PROCESS IS SO COSTLY CURRENT LAW REQUIRES THAT 15YEAR RENT SUBSIDIES BE ATTACHED TO MOST OF THE PROPERTIES UPON RESALE TO ENSURE THAT THE UNITS ARE AFFORDABLE TO LOWINCOME TENANTS BUT PREVIOUS ADMINISTRATIONS DIDN'T REQUEST AND CONGRESS DIDN'T PROVIDE THE MONEY NEEDED TO PAY FOR THE EXPENSIVE SUBSIDIES SO INCREASING NUMBERS OF PROPERTIES HAVE ENDED UP LANGUISHING IN THE HUD INVENTORY DEPARTMENT OFFICIALS SAID HUD WOULD NEED 65 BILLION TO 7 BILLION OVER THE NEXT FIVE YEARS TO PROVIDE THE SUBSIDIES REQUIRED TO SELL THE PROPERTIES THE CHANGES PROPOSED YESTERDAY WOULD LOWER THAT COST TO ABOUT 4 BILLION BY EASING THOSE RULES UNDER CURRENT LAW IF MORE THAN HALF THE UNITS IN A PROJECT ARE SUBSIDIZED THE DEPARTMENT MUST PROVIDE SUBSIDIES FOR ALL UNITS WHEN IT SELLS THE BUILDING THUS CREATING NEW SUBSIDIZED UNITS THAT EXPAND THE POOL OF AFFORDABLE HOUSING BUT UNDER THE CISNEROS PROPOSAL WHEN A BUILDING IS SOLD SUBSIDIES WOULD BE CONTINUED BUT HUD INSTEAD WOULD HAVE THE OPTION OF PROVIDING SUBSIDIES TO ADDITIONAL UNITS OR IMPOSING RENT RESTRICTIONS FOR 15 YEARS MR CISNEROS SAID THESE AND OTHER CHANGES WOULDN'T HURT LOWINCOME PEOPLE NOW RECEIVING SUBSIDIES BUT THE NEW PLAN PROBABLY WOULD ALLOW SOME 10000 UNITS THAT AREN'T SUBSIDIZED TO REMAIN SO AFTER THE SALE OF THE PROJECT IT ISN'T CLEAR HOW CONGRESS AND ADVOCATES OF LOWINCOME PEOPLE WILL RESPOND TO THE PROPOSAL SOME ADVOCATES YESTERDAY EXPRESSED CONCERN BUT SAID THEY WEREN'T YET FAMILIAR WITH THE DETAILS OF THE PLAN 9307280062 930728 MANAGING YOUR CAREER BY JOANN S LUBLIN THE WALL STREET JOURNAL TODAY INTRODUCES AN OCCASIONAL COLUMN AIMED AT HELPING READERS TAKE GREATER CONTROL OF THEIR WORK LIVES BY OFFERING EXPERTS' ADVICE ABOUT COMMON CAREER PROBLEMS THIS NEW COLUMN WILL TRY TO HELP PEOPLE MAKE THE MOST OF THEIR CAREERS DESPITE TODAY'S ANXIETIES OVER CONSTANT CUTBACKS SKIMPY RAISES AND SCARCE PROMOTIONS YOU FEEL STALE AT WORK AND THE EMPLOYMENT MARKET APPEARS BRIGHTER SO YOU DECIDE TO LOOK FOR A BETTER JOB BUT WHETHER TO HIDE YOUR HUNT FROM THE BOSS ISN'T AN EASY DECISION FEAR OF BEING DISCOVERED AND BEING FIRED IS A BIG REASON MANY PEOPLE DON'T LOOK FOR A NEW POSITION IN THE FIRST PLACE NEVERTHELESS CAREER COUNSELORS SAY PEOPLE CAN JOB HUNT WITH LESS ANXIETY BY TAKING THE RIGHT APPROACH TO LETTING SUPERIORS KNOW THAT THEY ARE SEEKING GREENER PASTURES THE KEY IS TO DECIDE WHETHER YOUR BOSS WILL REACT REASONABLY AMBIVALENTLY OR UNREASONABLY TO YOUR DESIRE TO LEAVE SOME SUPERVISORS ARE TRUSTED ALLIES WHO RECOGNIZE CAREER MOBILITY AS A FACT OF LIFE YOU CAN TELL THIS KIND OF REASONABLE BOSS ABOUT YOUR PURSUIT OF A NEW JOB IN FACT SUCH A SUPERIOR WILL APPRECIATE YOUR CANDOR ESPECIALLY IF YOU ALSO SAY I AM COMMITTED TO NOT LEAVING YOU IN THE LURCH SAYS NEIL M YEAGER AN ORGANIZATIONALDEVELOPMENT SPECIALIST FOR CHARTER OAK CONSULTING GROUP IN HARTFORD CONN MY CEO KNOWS I AM LOOKING FOR A FRESH CHALLENGE SAYS GEORGE LANGIS VICE PRESIDENT AND CORPORATE CONTROLLER OF ROGERS GROUP A CONSTRUCTION COMPANY BASED IN NASHVILLE TENN THE CHIEF EXECUTIVE DOESN'T MIND MR LANGIS ADDS BECAUSE I HAVE DONE A LOT FOR THIS COMPANY BESIDES MR LANGIS SAYS HIS DEPARTURE WOULD CREATE A CHANCE TO ELIMINATE A JOB SUPERVISORS HAVE TO BE MORE OPENMINDED ABOUT JOB HUNTING BY SUBORDINATES BECAUSE WE ARE BEING MORE RESTRICTIVE WITH THEIR RAISES AND PROMOTIONS THESE DAYS SAYS A MARKETING DIRECTOR FOR A BIG DRUG COMPANY EARLIER THIS YEAR AN EMPLOYEE TOLD HER HE WAS GOING TO SEEK A NEW JOB BECAUSE HE FELT UNCOMFORTABLE WITH A DEMANDING NEW ASSIGNMENT SHE ASKED HIM TO STAY FOR AS LONG AS THREE MONTHS WITHIN A MONTH SHE HAD FOUND AN INTERNAL REPLACEMENT AND HE HAD FOUND EMPLOYMENT ELSEWHERE IT WAS WINWIN FOR BOTH OF US SHE RECALLS IF YOU ARE UNSURE HOW YOUR BOSS WILL REACT TO YOUR JOBHUNTING EFFORT YOU MIGHT CONSIDER LETTING HIM OR HER FIND OUT INDIRECTLY ONE SUCCESSFUL MARKETING MANAGER AT A BIG MIDWESTERN CONSUMERPRODUCTS COMPANY FELT STUCK IN A DEAD END AND WAS PREPARED TO QUIT SHE SIGNALED HER INTENTIONS BY ASKING HER SECRETARY TO PREPARE HER REVISED RESUME ON AN OFFICE DESKTOP PRINTER PREDICTABLY THE WORD SPREAD WHEN SOMEONE SAW THE REVISED RESUME ON THE SECRETARY'S DESK THAT SENT A RIPPLE THROUGH THE ORGANIZATION BECAUSE SENIOR MANAGEMENT NEVER THOUGHT THE WOMAN WOULD LEAVE SAYS MARILYN MOATS KENNEDY A CAREER COUNSELOR IN WILMETTE ILL THE MANUFACTURER QUICKLY GAVE HER A PRODUCT DIVISION TO RUN A PROMOTION SHE THOUGHT SHE DESERVED BUT HAD NEVER SOUGHT A MIDLEVEL EXECUTIVE AT BANKERS TRUST NEW YORK USED FEELERS WITH OTHER BANKS TO WIN A SENIOR VICE PRESIDENT'S TITLE HIS BOSS A FRIEND HEARD RUMORS ABOUT THE CONTACTS AND ASKED HIM WHETHER HE WAS LOOKING AROUND I'M AVAILABLE IF THE RIGHT OPPORTUNITY COMES UP THE BANKER REMEMBERS REPLYING I'M NOT THAT HAPPY HERE HE SAYS HE SOON WAS PROMOTED TO SENIOR VICE PRESIDENT BECAUSE BANKERS TRUST BECAME AWARE OF HOW VALUABLE I WAS THIS TACTIC ONLY WORKS WHEN YOU DO IT IN A NICE NONCONFRONTATIONAL WAY AND ARE PREPARED TO RESIGN THE BANKER CAUTIONS IF YOU HAVE THE KIND OF BOSS WHO YOU KNOW WILL EXPLODE YOU MAY HAVE NO CHOICE BUT TO CONCEAL YOUR EMPLOYMENT PURSUIT AS LONG AS POSSIBLE THOUGH HE KEPT HIS QUEST SECRET A JOB SEARCH NEARLY COST CHRISTOPHER HUNT HIS POST AS A CREDIT MANAGER FOR MLC FINANCIAL A MEDICALEQUIPMENT LEASING COMPANY IN RIDGEFIELD CONN A POTENTIAL EMPLOYER TOLD MLC ABOUT MR HUNT'S SEARCH THE DIVISION PRESIDENT BECAME ANGRY AND WANTED TO FIRE MR HUNT FOR DISLOYALTY MLC HAD SPENT A LOT OF TIME AND EFFORT TO BRING ME UP TO SPEED SAYS MR HUNT NOW COEDITOR OF EXECUTIVE SEARCH REVIEW A NEWSLETTER IN GREENWICH CONN BUT I HAD EVERY RIGHT TO LOOK AROUND HE ESCAPED THE AX AFTER HIS IMMEDIATE SUPERVISOR PLEADED WITH THE DIVISION PRESIDENT MR HUNT SAYS HE QUIT ANYWAY A MONTH LATER TO TAKE A CREDIT DIRECTOR'S JOB THAT PAID 15 MORE OBVIOUSLY AN OFFER CARRIES MUCH MORE WEIGHT THAN JUST A SEARCH SURE AIR LTD A GENERALCONTRACTING MANAGEMENT COMPANY IN STAMFORD CONN OFFERED MATTHEW KAYE A 15 RAISE LAST SUMMER BECAUSE THE ACCOUNT EXECUTIVE SAYS HE WAS READY TO CHANGE EMPLOYERS AND POTENTIALLY EARN 10 MORE MR KAYE'S LAST PAY RAISE HAD BEEN 5 THE COUNTEROFFER PERSUADED HIM TO STAY PUT BUT WITHOUT THE COMPETING BID HE SAYS I DON'T THINK SURE AIR WOULD HAVE OFFERED ME MORE MONEY THERE CAN BE NEGATIVE REPERCUSSIONS WHEN YOUR JOB HUNT LEADS YOU TO ACCEPT A LUCRATIVE COUNTEROFFER HOWEVER YOU ARE ALWAYS THE PERSON I HAD TO PAY TOO MUCH SO YOU WOULDN'T JUMP SHIP SAYS DALE WINSTON PRESIDENT OF EXECUTIVE RECRUITERS BATTALIA WINSTON INTERNATIONAL IN NEW YORK THE MINUTE I DON'T NEED YOU I WON'T HAVE ANY MORE LOYALTY TOWARD YOU IN THE LONG RUN SHE ADDS ACCEPTING A COUNTEROFFER OFTEN DOESN'T PAY OFF 9307280061 930728 IBM POSTS 804 BILLION 2NDPERIOD LOSS HALVES DIVIDEND PLANS 35000 JOB CUTS GERSTNER HOPES MOVES TIED TO 89 BILLION CHARGE WILL END ERA OF CUTBACKS BY MICHAEL W MILLER AND LAURIE HAYS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SEEKING TO INFLICT ALL THE PAIN OF HIS TURNAROUND PLAN IN A SINGLE MASSIVE STROKE INTERNATIONAL BUSINESS MACHINES CORP CHAIRMAN LOUIS V GERSTNER JR ANNOUNCED AN 89 BILLION PRETAX CHARGE AND A PROGRAM TO SHED 35000 MORE WORKERS AND SHUTTER BUILDINGS AROUND THE WORLD IBM ALSO SLASHED ITS DIVIDEND IN HALF ITS SECOND CUT THIS YEAR AND POSTED A SECONDQUARTER NET LOSS OF 804 BILLION OR 1410 A SHARE THE RESULTS INCLUDED AN OPERATING LOSS OF 40 MILLION OR EIGHT CENTS A SHARE SOMEWHAT NARROWER THAN EXPECTED REFLECTING THE CONTINUING FREE FALL IN MAINFRAMECOMPUTER SALES AND A SMALL PROFIT FROM PERSONAL COMPUTERS AT A NEWS CONFERENCE HERE MR GERSTNER SAID HE BELIEVES THE LATEST CUTS ARE FINALLY THE LAST IBM WILL NEED AFTER SEVEN YEARS OF HACKING AWAY AT ITS EMPLOYEES AND OVERHEAD WE HAVE GOT TO GET BEHIND US THIS CHINESE WATER TORTURE WE'VE BEEN GOING THROUGH QUARTER AFTER QUARTER HE SAID MR GERSTNER'S MOVES CONTINUE ONE OF THE GREATEST BLOODLETTINGS IN BUSINESS HISTORY ONCE THE MOST INVINCIBLE POWER IN THE WORLD'S FASTESTGROWING INDUSTRY IBM'S EMPIRE CRUMBLED AT A BREATHTAKING RATE AS IT YIELDED THE PERSONAL COMPUTER REVOLUTION TO NIMBLER RIVALS VAINLY STRUGGLING TO STANCH ITS DECLINE IBM HAS NOW TAKEN A STAGGERING 28 BILLION IN CHARGES AND SLICED ITS WORK FORCE NEARLY IN HALF SINCE 1985 MOVING TO AX 180000 JOBS IN ALL IBM'S STOCK AFTER PLUNGING TO 18YEAR LOWS LAST WEEK ROSE 325 OR 77 ON YESTERDAY'S NEWS TO CLOSE AT 45625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ANALYSTS SAID INVESTORS HAD FEARED EVEN WORSE NEWS FROM IBM AND WERE RELIEVED MR GERSTNER WAS TAKING MAJOR STEPS THE IMPRESSIVE CUTS SET THE STAGE FOR MR GERSTNER'S BIGGEST CHALLENGE OF ALL PICKING THE MARKETS WHERE IBM CAN ULTIMATELY GROW STRONG AGAIN RIGHT NOW IBM IS TRAPPED IN HARDWARE MARKETS WITH COLLAPSING PROFIT MARGINS AND MERELY PLAYING CATCHUP IN THE MOST LUCRATIVE HIGHTECH BUSINESSES SUCH AS PERSONALCOMPUTER SOFTWARE AND MICROPROCESSORS MR GERSTNER YESTERDAY AGGRESSIVELY DISMISSED QUESTIONS ABOUT HIS LONGTERM VISION FOR IBM THE LAST THING IBM NEEDS NOW IS A VISION HE SAID WHAT IBM NEEDS RIGHT NOW IS A SERIES OF VERY TOUGHMINDED MARKETDRIVEN HIGHLY EFFECTIVE STRATEGIES IN EACH OF ITS BUSINESSES OVER LUNCH WITH A GROUP OF REPORTERS MR GERSTNER CONTINUED TO EXPRESS IMPATIENCE WHEN REPEATEDLY ASKED WHICH HIGHTECH MARKETS HE THINKS WILL LEAD IBM OUT OF ITS WORST CRISIS EVER HE SAID AT DIFFERENT TIMES THAT IT WAS TOO EARLY FOR HIM TO TELL HE DIDN'T WANT HIS COMPETITORS TO KNOW AND THAT THE ISSUE ITSELF WAS A RED HERRING SINCE MARKETS ARE CHANGING SO RAPIDLY IT'S TOO SIMPLISTIC TO SAY LET'S BE IN WORKSTATIONS OR NOT WORKSTATIONS PCS OR NOT PCS I EVEN THINK IT'S TOO SIMPLISTIC TO SAY LET'S BE IN SOFTWARE OR HARDWARE HE SAID MR GERSTNER'S FIRST ORDER OF BUSINESS HE SAID WAS TO BRING IBM'S COSTS IN LINE WITH THE NEW COMPETITION IN THE COMPUTER INDUSTRY LIKE SMOKERS REPEATEDLY QUITTING PREVIOUS IBM EXECUTIVES HAVE VOWED TIME AFTER TIME THAT A NEW ROUND OF COST CUTS MARKED THE LAST EVER BUT MR GERSTNER WITH AN OUTSIDER'S PERSPECTIVE AND THE HELP OF ACE COSTCUTTERS HE RECRUITED FROM THE BANKING AND AUTO INDUSTRIES MAY BE MORE CREDIBLE THIS IS THE MOST REALISTIC RESTRUCTURING PROGRAM IBM'S HAD SAID VETERAN ANALYST DAVID WU OF S G WARBURG & CO IBM CAME UP WITH THE MASSIVE NEW CUTS AFTER AN EXHAUSTIVE STUDY OF ITS LEANER HIGHTECH RIVALS THE COMPANY'S NEW CHIEF FINANCIAL OFFICER JEROME YORK SAID IBM DETERMINED IT NEEDED TO ELIMINATE A STAGGERING 6 BILLION FROM ITS ANNUAL COSTS TO MATCH THE RIVALS AND AN ADDITIONAL BILLION TO ANTICIPATE THE RIVALS' OWN COSTCUTTING MOVES IBM SAID THE CUTS ANNOUNCED YESTERDAY WILL ELIMINATE 4 BILLION IN ANNUAL COSTS CHARGES TAKEN IN LATE 1992 WILL ELIMINATE AN ADDITIONAL 125 BILLION THAT LEAVES 175 BILLION WHICH MR YORK SAID IBM PLANS TO CUT OVER THE NEXT THREE YEARS THROUGH ECONOMIES THAT WON'T REQUIRE A CHARGE AGAINST EARNINGS IBM THINKS IT CAN KEEP PACE WITH ITS RIVALS BECAUSE ITS GROSS PROFIT MARGINS AFTER TUMBLING 5 A YEAR ARE FINALLY STABILIZING AROUND 39 ROUGHLY THE INDUSTRY AVERAGE THE NEW IBM CHARGE AMOUNTS TO 6 BILLION TO CUT EMPLOYEES AND 29 BILLION FOR CUTS IN IBM'S VAST HOLDINGS IN FACTORIES OFFICE SPACE AND OTHER PHYSICAL ASSETS THE CHARGE FOR EMPLOYEE CUTS EQUALS SEVERANCE PAYMENTS OF 46 BILLION OR ROUGHLY 75000 PER PERSON PLUS 14 BILLION IN ACCOUNTING CHANGES THE COLOSSAL 116 BILLION IN CHARGES IBM TOOK LAST YEAR INCLUDED PROVISIONS FOR CUTTING 25000 EMPLOYEES IN 1993 YESTERDAY'S CHARGE COVERS AN ADDITIONAL 6000035000 ANNOUNCED YESTERDAY AND ANOTHER 25000 PREVIOUSLY REPORTED IBM SAID THE CUTS WOULD AFFECT ALL PARTS OF ITS FARFLUNG EMPIRE BUT REFUSED TO BE MORE SPECIFIC IN RESPONSE TO QUESTIONS ABOUT WHETHER FUTURE SEVERANCE PACKAGES WILL BE LESS THAN THOSE IN THE PAST OR OFFERED TO DIFFERENT KINDS OF EMPLOYEES GERALD CZARNECKI IBM'S HEAD OF PERSONNEL AND ADMINISTRATION TOLD ANALYSTS THE SEVERANCE PROGRAM WILL BE DRAMATICALLY CHANGED BUT DECLINED TO ELABORATE REPORTING ITS THIRD STRAIGHT QUARTERLY OPERATING LOSS AND ITS THIRD EVER IBM SAID ITS BUSINESS CONDITIONS GENERALLY WERE SOFT THROUGHOUT THE WORLD REVENUE SLIPPED 43 TO 1552 BILLION FROM 1622 BILLION A YEAR EARLIER IBM SAID SALES OF ITS CRUCIAL FLAGSHIP PRODUCTS MAINFRAME COMPUTERS DECLINED FROM THE YEAREARLIER SECOND QUARTER BUT THE RATE OF DECLINE SLOWED FROM THE FIRST QUARTER IBM ALSO SAW REVENUE DROP IN ITS BIG DISKDRIVE BUSINESS BRIGHTER SPOTS WERE PERSONAL COMPUTERS WORKSTATIONS AND COMPUTER SERVICES WHICH ALL SAW REVENUE GAINS IBM SAID ITS PERSONAL COMPUTER BUSINESS WAS MODESTLY PROFITABLE THOUGH MR GERSTNER SAID IT'S NOT A BUSINESS WITH GREAT PROFIT MARGINS AND IT'S UNDER ENORMOUS PRESSURE FOR THE FIRST HALF IBM POSTED A NET LOSS OF 832 BILLION OR 1460 A SHARE COMPARED WITH YEAREARLIER PROFIT OF 328 BILLION OR 241 A SHARE REVENUE FELL 56 TO 2858 BILLION FROM 3026 BILLION DEPARTING FROM IBM'S TRADITION OF DEMANDING A PREMIUM FOR THE BIG BLUE LOGO MR GERSTNER PROMISED HE WOULD KEEP PRICES LOW ENOUGH TO STAY COMPETITIVE HE VOWED TO MAKE SURE IBM'S FADING MAINFRAME BUSINESS THE COMPANY'S TRADITIONAL POWER CENTER DOESN'T WAGE TURF WARFARE AGAINST IBM'S SMALLER MACHINES HE ALSO NOTED AN UNUSUAL RECENT IBM AD CAMPAIGN INVITING CUSTOMERS TO TRADE IN THEIR MAINFRAMES FOR AN IBM MINICOMPUTER I GOT A LOT OF MAIL FROM EMPLOYEES WHO SAID WHAT ARE YOU DOING' HE SAID AT HIS MORNING NEWS CONFERENCE MR GERSTNER WHO HAD NO SIGNIFICANT HIGHTECH EXPERIENCE BEFORE HE CAME TO IBM IN APRIL SPOKE WITH NO NOTES RATTLING OFF JARGON ABOUT DATABASES AND CLIENTSERVER NETWORKS IN THE AFTERNOON HE IMPRESSED ANALYSTS WITH HIS BLUNTNESS BUT LEFT SEVERAL UNEASY ABOUT HIS REFUSAL TO OFFER A LONGTERM STRATEGY HE'S PUSHING A LOT OF THE RIGHT BUTTONS FOR INVESTORS SAID STEVEN MILUNOVICH OF MORGAN STANLEY BUT I'M LOOKING FOR A DEFINITION OF STRATEGIC DIRECTION AND I'M NOT HEARING A LOT YET ON THAT SUBJECT ANOTHER LONGTIME IBMWATCHER JAMES CASSELL OF THE MARKETRESEARCH FIRM GARTNER GROUP SAID I HAVE A PROBLEM WITH HOW YOU MANAGE A COMPANY WITHOUT KNOWING WHERE YOU TAKE IT THE DIVIDEND CUT WILL SAVE IBM 700 MILLION A YEAR ACCORDING TO MR YORK THE DIVIDEND WILL BE PAYABLE SEPT 10 TO STOCK OF RECORD AUG 11 SAID IBM IN ADDITION TO THE EARNINGS IBM ANNOUNCED THE ELECTION OF CHARLES KNIGHT 57 YEARS OLD CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF EMERSON ELECTRIC CO TO THE BOARD THE COMPANY ALSO ANNOUNCED THE RETIREMENTS OF STEPHEN D BECHTEL JR CHAIRMAN EMERITUS OF BECHTEL GROUP INC AND J RICHARD MUNRO CHAIRMAN OF THE EXECUTIVE COMMITTEE OF TIME WARNER INC'S BOARD THE MOVES CUT THE BOARD'S SIZE TO 17 MEMBERS BOTH STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC REACTED NEGATIVELY TO IBM'S ANNOUNCEMENTS S&P LOWERED ITS SENIOR DEBT RATINGS ON IBM AS WELL AS THE UNITS IBM CREDIT CORP INTERNATIONAL FINANCE NV AND IBM JAPAN LTD TO SINGLEA FROM DOUBLEAMINUS AFFECTING ABOUT 21 BILLION OF RATED DEBT AND PREFERRED STOCK MOODY'S PLACED THE COMPANIES' SHORT AND LONGTERM DEBT AND PREFERRED STOCK RATINGS UNDER REVIEW FOR POSSIBLE DOWNGRADE TOOK A PRETAX CHARGE OF 89 BILLION COMPRISING 6 BILLION FOR WORKFORCE REDUCTIONS AND 29 BILLION TO SHRINK CAPACITY AND OFFICE SPACE POSTED A SECONDQUARTER NET LOSS OF 804 BILLION OR 1410 A SHARE AND A PRECHARGE LOSS OF 40 MILLION OR EIGHT CENTS A SHARE SLASHED THE QUARTERLY DIVIDEND TO 25 CENTS A SHARE FROM 54 CENTS SAID IT WILL PARE ITS WORK FORCE BY 85000 25000 FORECAST LAST YEAR 25000 REPORTED EARLIER THIS MONTH AND AN ADDITIONAL 35000 ANNOUNCED YESTERDAY 9307280060 930728 KEATING MUST FORFEIT 265 MILLION FOR LOSSES AT S&L JUDGE ORDERS LOS ANGELES CHARLES KEATING JR WAS ORDERED TUESDAY TO FORFEIT 265 MILLION IN THE LINCOLN SAVINGS & LOAN ASSOCIATION FRAUD CASE ALTHOUGH THE FORMER EXECUTIVE CONTINUES TO CLAIM HE IS BROKE HIS LAWYER SAYS HE WILL APPEAL THE ORDER MR KEATING FORMER CHAIRMAN OF LINCOLN'S PARENT COMPANY WAS CONVICTED IN JANUARY ON MULTIPLE CRIMINAL RACKETEERING AND FRAUD CHARGES THAT RESULTED FROM A WIDERANGING FEDERAL INDICTMENT IN A TWOMONTH TRIAL LAST FALL IN FEDERAL COURT HERE US PROSECUTORS PROVED THAT MR KEATING 69 YEARS OLD SET UP UNLAWFUL SCHEMES TO BILK FUNDS FROM FEDERALLY INSURED DEPOSITORS THE 265 MILLION FORFEITURE SUM REPRESENTS WHAT A JURY DECIDED WAS LOST IN FRAUDULENT BOND SALES SIX PHONY LAND SALES AND TAX PAYMENTS MADE BY LINCOLN TO ITS PHOENIXBASED PARENT AMERICAN CONTINENTAL CORP MR KEATING ALREADY HAS BEEN ORDERED TO PAY BILLIONS OF DOLLARS IN THE CASE INCLUDING A 175 BILLION JUDGMENT IN A FEDERAL SUIT FILED BY THE BONDHOLDERS AND A 122 MILLION RESTITUTION ORDER IN THE CRIMINAL CASE HE HAS SPENT THE LAST 15 MONTHS IN PRISON ALSO CONVICTED FOR RELATED FEDERAL CRIMES IN JANUARY WAS MR KEATING'S SON 38YEAROLD CHARLES KEATING III A FORMER EXECUTIVE VICE PRESIDENT OF AMERICAN CONTINENTAL SENTENCING FOR THE YOUNGER MR KEATING WHO IS FREE ON BAIL IS SET FOR TOMORROW MR KEATING'S LAWYER SCOTT DEVEREAUX SAID HE WILL APPEAL THE FORFEITURE ORDER BY US DISTRICT JUDGE MARIANA R PFAELZER THE ORDER ALLOWS THE FEDERAL GOVERNMENT TO SEIZE ANY HIDDEN ASSETS OF MR KEATING IT CAN FIND 9307280059 930728 MITSUBISHI ELECTRIC IS SUED BY NATIONAL SEMICONDUCTOR CORP SANTA CLARA CALIF NATIONAL SEMICONDUCTOR CORP SAID IT FILED A PATENT INFRINGEMENT SUIT AGAINST MITSUBISHI ELECTRIC CORP AND ALSO ASKED THE US INTERNATIONAL TRADE COMMISSION TO BAN IMPORTATION OF SOME OF THE JAPANESE ELECTRONICS EQUIPMENT MAKER'S PRODUCTS IN THE LAWSUIT FILED IN FEDERAL COURT IN DURHAM NC NATIONAL SEMICONDUCTOR ALLEGES THAT MITSUBISHI HAS ILLEGALLY USED IN ITS PRODUCTS CHIP TECHNOLOGIES MICROCONTROLLERS AND PACKAGING AND WAFER PROCESSING TECHNOLOGY AMONG OTHER THINGS THE DEVICES ARE USED IN COMPUTERS COMMUNICATIONS SYSTEMS AUTOMOBILES AND OTHER PRODUCTS NATIONAL SEMICONDUCTOR SAID IT HAD BEEN TALKING WITH MITSUBISHI FOR TWO YEARS ABOUT SETTING UP CROSSLICENSING AGREEMENTS THAT WOULD ENABLE THE TWO COMPANIES TO SHARE CERTAIN INFORMATION COVERED BY THE PATENTS BUT A SPOKESWOMAN SAID THE TALKS BROKE DOWN ON FRIDAY PROMPTING THE LAWSUIT AND THE APPEAL TO THE TRADE COMMISSION A MITSUBISHI ELECTRIC SPOKESMAN SAID THE COMPANY WAS READY TO DEFEND ITSELF WE BELIEVE IN THE CORRECTNESS OF OUR POSITION HE SAID IF THE SUIT IS A FACT WE WILL RESPOND IMMEDIATELY WE WILL CONSIDER FILING A COUNTERSUIT NATIONAL SEMICONDUCTOR SHARES CLOSED AT 16375 DOWN 25 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY 9307280058 930728 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 TCI INTERNATIONAL INC AN 850 MILLION TWOPART ISSUE WAS PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 300 MILLION OF NOTES DUE AUG 1 2005 WAS PRICED AT PAR TO YIELD 725 THE NOTES WERE PRICED AT A SPREAD OF 135 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 550 MILLION OF DEBENTURES DUE AUG 1 2013 WAS PRICED WITH A 7 7/8 COUPON AT 9896 TO YIELD 798 THE DEBENTURES WERE PRICED AT A SPREAD OF 130 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP DOLE FOOD CO A 400 MILLION TWOPART ISSUE WAS PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 225 MILLION OF NOTES DUE JULY 15 2000 WAS PRICED WITH A 6 3/4 COUPON AT 9959 TO YIELD 6824 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 125 BASIS POINTS ABOVE COMPARABLE TREASURYS THE SECOND TRANCHE 175 MILLION OF DEBENTURES DUE JULY 15 2013 WAS PRICED WITH A 7 7/8 COUPON AT 99367 TO YIELD 7938 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 125 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P PUBLIC SERVICE ELECTRIC & GAS CO 300 MILLION FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 1 2002 WERE WON IN COMPETITIVE BIDDING BY JP MORGAN SECURITIES INC AND REOFFERED WITH A 6 1/8 COUPON AT 9875 TO YIELD 6309 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE A COMPARABLE TREASURY NOTE DUE AUGUST 2002 THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P PSE&G IS A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP INC MAXXAM GROUP INC A 170 MILLION TWOPART ISSUE OF DEBT WAS PRICED BY UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 100 MILLION OF SENIOR SECURED NOTES DUE AUG 1 2003 WAS PRICED AT PAR TO YIELD 1125 THE NOTES ARE NOT CALLABLE FOR FIVE YEARS THE SECOND TRANCHE 70 MILLION OF SENIOR SECURED DISCOUNT NOTES DUE AUG 1 2003 WAS PRICED AT 55185 TO YIELD 1225 THE NOTES NOT CALLABLE FOR FIVE YEARS DO NOT PAY A COUPON FOR FIVE YEARS BOTH TRANCHES ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P TORCHMARK CORP 100 MILLION OF NOTES DUE AUG 1 2013 WAS PRICED WITH A 7 3/8 COUPON AT 994 TO YIELD 7433 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO AT&T CAPITAL CORP AN INITIAL PUBLIC OFFERING WAS PRICED AT 2150 A SHARE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS AT&T CAPITAL FORMERLY THE WHOLLY OWNED FINANCE AND EQUIPMENTLEASING SUBSIDIARY OF AMERICAN TELEPHONE & TELEGRAPH CO SAID FOUR MILLION SHARES WILL BE OFFERED IN THE US AND ONE MILLION SHARES INTERNATIONALLY FOLLOWING THE OFFERING AND THE EXPECTED SALE OF 875000 SHARES TO SENIOR MANAGEMENT AT&T WILL CONTINUE TO OWN MORE THAN 80 OF AT&T CAPITAL'S STOCK STATE OF CONNECTICUT 450 MILLION SPECIAL ASSESSMENT UNEMPLOYMENT COMPENSATION ADVANCE FUND REVENUE BONDS 1993 SERIES A WERE PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 310 IN 1994 TO 475 IN 2000 SOME OF THE BONDS DUE IN 1997 AS WELL AS THOSE DUE IN 19982000 ARE INSURED BY AMBAC THOSE SECURITIES ARE ALL RATED TRIPLEA BY BOTH MOODY'S AND S&P THE REMAINING BONDS ARE RATED SINGLEA1/MIG1 BY MOODY'S AND SINGLEAPLUS BY S&P NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY 440 MILLION OF BONDS INCLUDING 360 MILLION REFUNDING SERIES 1993 C REVENUE BONDS AND 80 MILLION SERIES 1993 D REVENUE BONDS WERE PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO YIELD FROM 350 IN 1995 TO 593 IN 2016 THE BONDS ARE RATED SINGLEA BY MOODY'S AND SINGLEAMINUS BY S&P LOS ANGELES 1784 MILLION OF BONDS CONSISTING OF SERIES 1993 A GENERAL OBLIGATION BONDS AND SERIES 1993 B REFUNDING BONDS APPARENTLY WERE WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 52187 THE BONDS ARE RATED DOUBLEA1 BY MOODY'S AND WERE PRICED TO YIELD FROM 290 IN 1994 TO 555 IN 20112013 HILLSBOROUGH COUNTY FLA 1767 MILLION REFUNDING UTILITY REVENUE BONDS DUE 19942013 AND 2016 APPARENTLY WERE WON BY A MORGAN STANLEY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 55106 THE BONDS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P WERE PRICED FOR REOFFERING TO YIELD FROM 260 IN 1994 TO 570 ON THE 43 MILLION TERM BONDS DUE 2016 KANSAS TURNPIKE AUTHORITY 104 MILLION OF REVENUE BONDS SERIES 1993 WERE TENTATIVELY PRICED BY A BC CHRISTOPHER GROUP TO YIELD FROM 270 IN 1994 TO 560 IN 2017 THE BONDS ARE AMBACINSURED AND RATED TRIPLEA BY MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1577 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993162 IS BACKED BY 200 MILLION PO AND 75 MILLION IO OF SMBS 237 WHICH IN TURN ARE BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES TRUST 1993161 IS BACKED BY PRINCIPAL ONLY COLLATERAL FROM THE AGENCY'S SMBS TRUST 203 WHICH IN TURN IS BACKED BY 30YEAR 8 MORTGAGE SECURITIES TOKYU LAND CORP JAPAN 30 BILLION YEN OF 46 EUROBONDS DUE AUG 6 1997 AT ISSUE AND REOFFER PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD BONDS YIELD 46 FEES 030 MITSUBISHI CORP FINANCE PLC JAPAN PARENT 20 BILLION YEN OF 4 EUROBONDS DUE DEC 8 1996 AT ISSUE PRICE 10165 VIA MERRILL LYNCH INTERNATIONAL LTD REOFFERED AT 10050 TO YIELD 383 KEEPWELL AGREEMENT WITH MITSUBISHI CORP FEES 1 3/8 OLYMPIC SPORTS CO JAPAN FIVE BILLION YEN OF 175 CONVERTIBLE EUROBONDS DUE SEPT 30 1997 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY FROM SEPT 1 1993 TO SEPT 23 1997 AT INDICATED 25 PREMIUM OVER CLOSING SHARE PRICE ON AUG 3 WHEN TERMS FIXED NOTES CALLABLE FROM APRIL 1 1994 AT 10225 DECLINING BY 1/4 POINT EVERY SIX MONTHS FEES 2 1/2 LESS 035 DEDUCTED FOR LEAD MANAGER INTEREST PAYABLE SEMIANNUALLY DAIDO HOXAN INC JAPAN 200 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE AUG 12 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 1 COUPON AT PAR VIA CREDIT SUISSE EACH NOTE EXERCISABLE FROM AUG 23 1993 TO AUG 1 1997 TO PURCHASE COMPANY SHARES FINAL TERMS FIXED JULY 29 FEES 1 5/8 HOKKAIDO GAS CO JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE AUG 12 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 1 1/8 COUPON AT PAR VIA YAMAICHI BANK SWITZERLAND NOTES EXERCISABLE FROM AUG 26 1993 TO AUG 5 1997 TO PURCHASE COMPANY SHARES FINAL TERMS FIXED AUG 2 FEES 1 5/8 KATO DENKI CO JAPAN 50 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 1 NOTES DUE SEPT 30 1997 AT PAR VIA NOMURA BANK SWITZERLAND EACH NOTE CONVERTIBLE INTO COMPANY SHARES FROM AUG 26 1993 TO SEPT 24 1997 TERMS FIXED AUG 2 FEES 1 5/8 MORTGAGE BANK OF DENMARK DENMARK AGENCY 750 MILLION DANISH KRONER OF 6 3/4 EUROBONDS DUE SEPT 1 1998 AT ISSUE PRICE 101295 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9967 TO YIELD 683 GUARANTOR KINGDOM OF DENMARK FEES 1 7/8 STATE BANK OF SOUTH AUSTRALIA AUSTRALIA AGENCY 100 MILLION AUSTRALIAN OF 6 3/4 EUROBONDS DUE SEPT 14 1998 AT ISSUE PRICE 100 3/4 VIA HAMBROS BANK LTD BONDS YIELD 703 AT 98875 BREAKEVEN PRICE FOR COMANAGERS GUARANTOR STATE OF SOUTH AUSTRALIA FEES 2 LESS 1/8 DEDUCTED FOR LEAD MANAGER 9307280057 930728 BUSINESS BRIEF LEGENT CORP SOROS AND QUANTUM FUND BOUGHT 9 OF STOCK RECENTLY LEGENT CORP'S SHARES ROSE 83 ON NEWS THAT A GROUP INCLUDING FINANCIER GEORGE SOROS AND HIS QUANTUM FUND NV ACQUIRED 9 OF LEGENT'S STOCK IN THE PAST MONTH AND A HALF MR SOROS'S FILING WITH THE SECURITIES AND EXCHANGE COMMISSION WAS SOMEWHAT VAGUE DECLARING THAT THE GROUP MAY SPEAK WITH LEGENT MANAGEMENT TO BETTER UNDERSTAND PROSPECTS FOR THE COMPANY A SPOKESMAN FOR LEGENT SAID THE COMPANY VIEWED MR SOROS'S GROUP AS JUST ANOTHER LARGE SHAREHOLDER THE VIENNA VA SOFTWARE COMPANY SHED 42 OR MORE THAN 600 MILLION OF ITS MARKET VALUE FROM JULY 12 TO JULY 14 PARTLY ON DISAPPOINTING FISCAL THIRDQUARTER EXPECTATIONS WALL STREET ALSO FEARS A WEAKENING MARKET FOR COMPANIES LIKE LEGENT WHICH SUPPLY SOFTWARE FOR MAINFRAME COMPUTERS LEGENT CLOSED AT 1950 UP 150 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ACCORDING TO THE FILING THE SOROS GROUP PURCHASED MOST OF THE LEGENT STAKE SINCE JUNE 3 BUYING ABOUT 289 MILLION COMMON SHARES AT 16125 TO 36381 A SHARE THE GROUP HOLDS 306 MILLION LEGENT SHARES 9307280056 930728 BUSINESS BRIEF ROSS STORES INC YEAR'S PROFIT COULD DECLINE BECAUSE OF SLUGGISH SALES ROSS STORES INC NEWARK CALIF SAID SALES THIS MONTH HAVE BEEN BELOW EXPECTATIONS AND PREDICTED THAT ITS PERSHARE NET INCOME FOR THE YEAR ENDING JAN 30 COULD DROP AS MUCH AS 8 BARRING A SALES REBOUND IN COMING MONTHS ROSS A DISCOUNT RETAIL CHAIN BLAMED THE SLUGGISH JULY SALES ON THE GENERAL ECONOMY AND ON REDUCED ADVERTISING IT SAID SALES AT STORES OPEN MORE THAN A YEAR WILL LIKELY BE ABOUT THE SAME IN THE SECOND QUARTER AS THEY WERE IN THE YEAREARLIER PERIOD THE COMPANY ALSO SAID THAT UNLESS SALES PICK UP PERSHARE EARNINGS COULD BE 120 TO 130 FOR THE YEAR LAST YEAR ROSS EARNED 34 MILLION OR 130 A SHARE ON SALES OF 104 BILLION ANALYSTS GENERALLY HAVE BEEN FORECASTING THAT ROSS'S FULLYEAR EARNINGS WOULD TOTAL ABOUT 138 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN OVERTHECOUNTER TRADING ROSS CLOSED AT 12875 DOWN 1625 OR 11 9307280055 930728 LEISURE & ARTS BOOKSHELF CRUEL REALITY OF CHINA'S POPULATION POLICY BY ANDREW BRICK THE OVERWHELMING IMPRESSION LEFT BY STEVEN W MOSHER'S FASCINATING ACCOUNT OF CHI AN A CHINESE COMMUNIST REVOLUTIONARY MOTHER ABORTIONIST AND EXILE IS OF A LAND WITH A PERVASIVE AND DISTINCTIVE CULTURE OF CRUELTY A MOTHER'S ORDEAL HARCOURT BRACE 335 PAGES 2195 IS FILLED WITH DROWNINGS STERILIZATIONS BEATINGS AND HUMILIATIONS ALMOST MATTEROFFACTLY CHI AN TELLS OF PERFORMING HER FIRST STATESPONSORED ABORTION I LOOKED INTO THE PAN TO FIND THE REMAINS OF WHAT HAD BEEN A FEW MINUTES BEFORE A 13WEEKOLD FETUS I COULD MAKE OUT THE REMAINS OF ARMS AND LEGS AND TRUNK AND SKULL THEN MY EYES LOCKED ON A PERFECT LITTLE HAND LESS THAN HALF A CENTIMETER LONG I STARED AT FOUR TINY FINGERS AND A TINY OPPOSED THUMB COMPLETE WITH TRANSLUCENT FINGERNAILS AND I KNEW WHAT I HAD DONE WRITTEN EFFECTIVELY IF UNCONVENTIONALLY BY MR MOSHER IN THE FIRST PERSON A MOTHER'S ORDEAL BEARS WITNESS TO THE TERROR THAT CAN ACCOMPANY DAILY LIFE IN TODAY'S CHINA WHILE MORE INFORMATION ABOUT CHINA'S BRUTALLY RESTRICTIVE POLICIES IS STEADILY COMING TO LIGHT IT IS UNUSUAL TO HAVE AS AN INFORMANT A NURSE WHO WAS BOTH VICTIM AND VICTIMIZER NEARLY EVERY BIRTH IN CHINA TODAY IS SCRUTINIZED WITHIN THE QUANTITATIVE CONFINES OF THE WORLD'S MOST STRENUOUS POPULATIONCONTROL POLICY THE REASON THE NATION'S HUGE POPULATION NOW 117 BILLION INHABITANTS HAS BEEN CONSIDERED A DRAG ON CHINA'S ECONOMIC DEVELOPMENT SINCE 1955 WHEN MAO TSETUNG INITIATED A COMPULSORY FAMILYPLANNING PROGRAM GO TO MOST ANY FAMILYPLANNING OFFICE IN CHINA'S HINTERLAND TODAY AND A PARTY CADRE WILL OBLIGINGLY DISPLAY A HANDFUL OF BINDERS SHOWING THE FERTILITY AND CONTRACEPTIVE STATUS OF EVERY WOMAN IN TOWN THE RELATIONSHIP BETWEEN POPULATION AND ECONOMIC DEVELOPMENT IS COMPLEX AND THE EFFECT OF ONE ON THE OTHER CANNOT BE DETERMINED WITH ENOUGH CERTAINTY TO JUSTIFY VIOLATING HUMAN RIGHTS TO REDUCE BIRTH RATES INCONCLUSIVE EVIDENCE NOTWITHSTANDING CHINA'S LEADERSHIP USES EVERY MEANS OF COERCION TO ACCOMPLISH ITS GOAL OF ZERO POPULATION GROWTH CHI AN RELATES THEM ALL IN DREADFUL DETAIL FROM THE FINES TO THE PEER PRESSURE FROM THE IUD INSERTIONS TO THE FORCED ABORTIONS AND SHE DOES SO AS BOTH COERCER AND COERCED IN 1978 10 YEARS AFTER SHE FIRST BEGAN PERFORMING ABORTIONS FOR THE STATE CHI AN HERSELF WAS FORCED TO ABORT AFTER ACCIDENTALLY BECOMING PREGNANT SOON AFTER THE BIRTH OF HER FIRST CHILD A SON IN 1987 SHE FORMALLY REQUESTED TO HAVE A SECOND CHILD WHILE LIVING WITH HER STUDENTHUSBAND IN THE SOUTHWEST US IN ONE OF THE MOST ASTOUNDING PARTS OF THE BOOK CHI AN SHARES A SERIES OF LETTERS SHE RECEIVED WHILE IN THE USWHERE SHE STILL LIVES FROM THE POPULATIONCONTROL OFFICE AT THE SHENYANG TRUCK FACTORY IN WHICH SHE HAD WORKED WARNING THE COUPLE IN LATE 1987 THAT GIVING BIRTH TO ANOTHER CHILD IN AMERICA WAS UNAUTHORIZED AND THAT EVERYONE FROM THE FACTORY DIRECTOR TO THE CADRES ON THE WORKSHOP FLOOR WOULD BE PUNISHED IF THEY WENT AHEAD AND HAD A BABY ONE OF THE LETTERS INTONED YOU SHOULD SERIOUSLY REFLECT ON THESE CONSEQUENCES AND COME TO A SPEEDY DECISION TO FIX YOUR PROBLEM THEY DID CHI AN GAVE BIRTH TO A GIRL A COUPLE OF MONTHS LATER COERCION BY INTERNATIONAL POST IS JUST A TOUCH OF THE HORROR A MOTHER'S ORDEAL BRINGS HOME MR MOSHER HAS DISGUISED MOST OF THE INDIVIDUALS IN THE BOOK BY GIVING THEM FICTITIOUS IDENTITIES LARGELY BECAUSE THE REAL CHI AN AND HER FAMILY STILL FEAR FOR THEIR SAFETYEVEN AFTER RECEIVING ASYLUM IN THE US IN AUGUST 1988 ON GROUNDS THAT THEY WERE BEING PERSECUTED BY THE CHINESE GOVERNMENT FOR REFUSING TO HAVE ANOTHER ABORTION YET WHILE THE VIOLENCE IN THIS BOOK NEVER RELENTS IT IS ALSO NEVER GRATUITOUS INDEED IT'S PURPOSEFUL THIS STORY WORKS BECAUSE IT IS TOLD SO UNAPOLOGETICALLY CHI AN'S ONLY OBJECTIVE IT SEEMS IS TO GIVE A FULL ACCOUNTING OF WHAT HAPPENED WHO IS THE XIONGSHOU THE VILLAIN CHI AN ASKS AS SHE REFLECTS ON THE COURSE OF HER LIFE AFTER HER 1978 FORCED ABORTION IS THE DOCTOR RESPONSIBLE FOR MY CHILD'S DEATH IS THE POPULATION CONTROL OFFICIAL THE VILLAIN IS THE POLICY ITSELF TO BLAME AM I THE VILLAIN THE READER CAN ALMOST SEE HER PLEADINGLY SEARCHING FOR THE ANSWERS UNLIKE SO MANY OTHER LIFEINCOMMUNISTCHINA TALES THIS BOOK OFFERS NONE OF THE PERSONAL RENEWAL THAT CATHARSIS INVARIABLY BRINGS CHI AN'S POSTDICTATORSHIP ACCOUNTING IS ONLY JUST BEGINNING THAT FRESHNESS IS IMPORTANT IT HELPS BRING HOME THE TERROR OF STATE INTRUSIVENESS IN THE PEOPLE'S REPUBLIC AND REFUTES THE NOTION THAT REPRESSION IN CHINA IS THE DOWNSIDE OF AN EFFORT TO TURN THE COUNTRY CONSTRUCTIVELY TOWARD THE 21ST CENTURY AS MR MOSHER HAS SO FORCEFULLY ARGUED IN HIS PAST WORKS THE REIGN OF TERROR IN CHINAFROM THE PARTY DENUNCIATIONS TO THE FORCED ABORTIONS AT FULL TERM TO THE OMNIPRESENT FEARS OF EXILES IS NOT MODERNIST BUT CHARACTERISTICALLY COMMUNIST CHI AN'S HOMELAND IS FULL OF VICTIMS OF COMMUNIST CHINA'S NATIONAL POLICIES SHE AND MR MOSHER HAVE NOT ONLY TOLD THE STORY OF ONE MOTHER'S ORDEAL THEY'VE RECOUNTED A NATION'S ORDEAL TOO MR BRICK IS DEPUTY EDITORIAL PAGE EDITOR OF THE ASIAN WALL STREET JOURNAL 9307280054 930728 INTERNATIONAL GALLIC PRIDE STUNG BY BUNDESBANK MUSCLE FRANC IS HELD HOSTAGE TO GERMAN ACTION ON RATES BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRANCE IS SWALLOWING ITS PRIDE AND ONCE AGAIN NERVOUSLY WAITING FOR THE GERMAN CENTRAL BANK TO DECIDE THE FUTURE OF THE BELEAGUERED FRENCH FRANC AND THE ENTIRE EUROPEAN MONETARY SYSTEM ONLY A DECISIVE MOVE BY THE BUNDESBANK AT ITS REGULAR MEETING TOMORROW IS LIKELY TO RESTORE CALM TO EUROPEAN FOREIGN EXCHANGE MARKETS FOLLOWING TWO WEEKS OF TURBULENCE SAY EUROPEAN ECONOMISTS AND FRENCH GOVERNMENT OFFICIALS IF THE BANK SURPRISES THE MARKETS BY NOT TAKING ANY ACTION AT ALL SOME BELIEVE THE PRESSURE ON THE FRANC AND OTHER CURRENCIES INCLUDING THE DANISH CROWN AND THE BELGIAN FRANC COULD REACH BREAKING POINT IF THEY DO NOTHING IT WILL SHOW THAT THE BUNDESBANK ISN'T VERY ATTACHED TO THE DEUTSCHE MARKFRENCH FRANC LINK SAYS PATRICK ARTUS ECONOMIST AT FRANCE'S STATE RUN CENTRAL SAVINGS BANK CAISSE DES DEPOTS ET CONSIGNATIONS IT'S DIFFICULT TO ENVISAGE THAT THE CURRENT FRENCH MOOD OF HUMBLE EXPECTATION IS A FAR CRY FROM THE TRIUMPHALISM IN PARIS JUST ONE MONTH AGO BACK THEN FRENCH MONETARY AUTHORITIES WERE PROFITING FROM A SPELL OF WEAKNESS IN THE MARK BY AGGRESSIVELY CUTTING INTEREST RATES BELOW GERMAN LEVELS THE PRESS ACTIVELY ENCOURAGED BY THE GOVERNMENT BOASTED THAT FRANCE NOW HAD THE STRONGEST CURRENCY IN EUROPE SOME EVEN TALKED ABOUT THE FRANC REPLACING THE MARK AS THE ANCHOR OF THE EUROPEAN MONETARY SYSTEM OR AT LEAST SHARING THE ROLE MORE EVENLY IN HINDSIGHT THE TALK WAS SELFDELUSION THE RATE CUTS WERE OVERLY HASTY AND PROBABLY CONTRIBUTED TO THE CURRENT CRISIS ALL IT TOOK TO RESTART THE ONSLAUGHT IN CURRENCY MARKETS WERE NEW FIGURES SHOWING THE FRENCH RECESSION WORSENING AS THE GERMAN ECONOMY'S PROSPECTS SEEMED TO BE BRIGHTENING THE FRENCH STRATEGY WAS A BIT RISKY AND THE NUMBERS CALLED THEIR BLUFF SAYS ALISON COTTRELL A EUROPEAN ECONOMIST AT MIDLAND GLOBAL MARKETS IN LONDON THE INCIDENT SHOWS THAT FRANCE CAN'T UNDERCUT GERMAN RATES SUSTAINABLY AND INDEPENDENTLY SHE SAYS IT ISN'T THE FIRST TIME THE BANQUE DE FRANCE AND THE FRENCH TREASURY HAVE BEEN WRONGFOOTED IN THE FALL OF 1991 AT A TIME WHEN GERMAN RATES WERE TRENDING UPWARDS FRANCE TRIED TO REDUCE ITS RATES WITHIN DAYS IT HAD TO DO AN EMBARRASSING ABOUTFACE AND RAISE THEM AGAIN THIS TIME AROUND AT LEAST UNTIL THE RECENT TURBULENCE FRENCH AND GERMAN RATES HAVE MOVED IN THE SAME DIRECTION BUT FRANCE HAS HAD STRONG POLITICAL INCENTIVES FOR TRYING TO RUN AHEAD OF ITS NEIGHBOR THE NEW CONSERVATIVE GOVERNMENT OF PRIME MINISTER EDOUARD BALLADUR HAS SOUGHT TO WIN CREDIBILITY WITH VOTERS AT HOME BY FORCING DOWN INTEREST RATES 10 TIMES SINCE BEING ELECTED IN MARCH BY TRUMPETING ITS ACHIEVEMENTS AND PROMISING MORE OF THE SAME THE GOVERNMENT HOPED TO PERSUADE DOMESTIC INVESTORS TO BUY A SPECIAL BOND ISSUE PAYING A PALTRY 6 WELL BELOW THE YIELD ON MOST DOMESTIC MONEY MARKET FUNDS THE BOND ISSUE WAS A RESOUNDING SUCCESS BUT THEY SHOUTED HURRAH RATHER TOO SOON SAYS ONE SENIOR GERMAN MONETARY OFFICIAL HE SAYS THE LESSONS OF THE CURRENT CRISIS SHOULD BE CLEAR HOWEVER HARD IT IS TO ACCEPT FRANCE HAS ALMOST NO ROOM FOR INDEPENDENT MANEUVERING IN ITS INTERESTRATE POLICY AND CAN ONLY MAKE FUTURE RATE CUTS IN TANDEM WITH GERMANY THE TWO NATIONS HAVE ALREADY FOUGHT OFF HUGE ONSLAUGHTS AGAINST THE FRANC ONCE LAST SEPTEMBER WHEN THE BRITISH POUND AND THE ITALIAN LIRA WERE KNOCKED OUT OF THE EUROPEAN MONETARY SYSTEM AND AGAIN IN JANUARY WHEN SPAIN AND PORTUGAL WERE FORCED TO DEVALUE THEIR CURRENCIES THIS TIME AS ON BOTH PREVIOUS OCCASIONS FRANCE AND GERMANY HAVE RELIED ON A MIXTURE OF OFFICIAL STATEMENT AND MARKET INTERVENTION TO FEND OFF THE ATTACKS BUT THE ECONOMIC PICTURE HAS CHANGED MARKEDLY SINCE THE PREVIOUS TWO CURRENCY CRISES FRANCE IS NOW IN RECESSION AND STRUGGLING TO COUNTER RISING UNEMPLOYMENT ALTHOUGH INTEREST RATES HAVE BEEN FALLING THROUGHOUT EUROPE FOR THE MOST PART LED BY THE BUNDESBANK FRANCE'S INFLATION RATE IS ALMOST NEGLIGIBLE THAT MEANS IT IS CURRENTLY STUCK WITH A LEVEL OF REAL INTEREST RATES AFTER TAKING INFLATION INTO ACCOUNT OF A CRIPPLING 5 OR MORE THE SITUATION IN FACT BEARS SOME RESEMBLANCE TO THE POSITION BRITAIN WAS IN WHEN IT WAS FORCED TO ABANDON ITS LINK WITH THE MARK AND LEAVE THE EUROPEAN MONETARY SYSTEM LAST YEAR IN FRANCE NOW AS IN THE UK BACK THEN THE LAST THING THE GOVERNMENT WANTS TO DO IS TO RAISE INTEREST RATES IN A RECESSION INDEED THE PRESENT MARKFRANC RATE IS ALREADY HOTLY CONTESTED BY SEVERAL TOP FRENCH OFFICIALS NOTABLY PHILIPPE SEGUIN THE PARLIAMENT SPEAKER THEY HAVE BEEN URGING THE GOVERNMENT TO DEVALUE THE FRANC AND SLASH INTEREST RATES AS A REMEDY FOR BOOSTING JOBS SUCH POLITICAL UNCERTAINTY IS ENCOURAGING CURRENCY TRADERS WHO HAVE BEEN ACTIVELY SELLING FRANCS IN THE EXPECTATION OF AN IMMINENT FRANC DEVALUATION THE PROSPECT OF A LOWER FRANC HAS ALSO GIVEN A STRONG BOOST TO THE PARIS BOURSE OVER THE PAST FEW DAYS EVEN IF THE BUNDESBANK COMES TO THE RESCUE AGAIN SOME ECONOMISTS BELIEVE THE INSTABILITY WILL LINGER UNTIL GERMAN INTEREST RATES FALL MUCH FURTHER IT'S THE ABSOLUTE LEVEL OF INTEREST RATES THAT IS THE MAIN ISSUE SAYS MR ARTUS OF CAISSE DES DEPOTS THE CURRENT LEVEL OF RATES IS SIMPLY NOT SUITABLE FOR OUR ECONOMY 9307280053 930728 BUSINESS BRIEF PNC BANK TO BUY FIRST EASTERN CORP IN 330 MILLION DEAL PITTSBURGH PNC BANK CORP EXPANDING ITS PRESENCE IN NORTHEASTERN PENNSYLVANIA SAID IT WILL ACQUIRE FIRST EASTERN CORP WILKESBARRE PA IN A CASH TRANSACTION WITH AN INDICATED VALUE OF 330 MILLION UNDER THE AGREEMENT PNC WILL PAY 2650 A SHARE IN CASH IF THE TRANSACTION CLOSES BY YEAR END OR 27 IF IT TAKES PLACE AFTER DEC 31 PNC WHICH HAS 538 BILLION IN ASSETS HAS THE OPTION TO PURCHASE ADDITIONAL UNISSUED SHARES OF COMMON STOCK FIRST EASTERN SHARES SKYROCKETED ON THE NEWS IN OVERTHECOUNTER TRADING THE STOCK CLOSED AT 25 UP 5 OR 25 THE STOCK HAD JUMPED 275 ON MONDAY A PNC SPOKESMAN SAID THE TRANSACTION IS CONSISTENT WITH THE COMPANY'S STRATEGY OF FILLING IN GAPS IN ITS PENNSYLVANIA OPERATIONS IN MAY FOR EXAMPLE PNC ANNOUNCED IT WILL ACQUIRE UNITED FEDERAL BANCORP OF STATE COLLEGE PA PREVIOUS ACQUISITIONS HAVE INCLUDED BANKS IN ERIE AND CAMP HILL PA SEPARATELY PNC SAID IT WILL SELL 130 MILLION OF NONPERFORMING REAL ESTATE ASSETS TO WHITEHALL STREET FUND AN INVESTMENT PARTNERSHIP ORGANIZED BY GOLDMAN SACHS & CO PNC WHICH HAD 675 MILLION IN NONPERFORMING ASSETS AS OF JUNE 30 SAID THE SALE WILL REDUCE NONPERFORMING ASSETS BY 19 PNC SAID IT WILL NET 102 MILLION FROM THE TRANSACTION 9307280052 930728 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO CONCERN POSTS 29 INCREASE IN NET FOR SECOND QUARTER GOODYEAR TIRE & RUBBER CO CREDITING COST CUTTING AND LOWER INTEREST EXPENSES SAID ITS SECONDQUARTER NET INCOME CLIMBED 29 TO 1376 MILLION FROM 1069 MILLION A YEAR AGO ON A PERSHARE BASIS NET INCOME WAS 95 CENTS FOR THE QUARTER UP FROM 75 CENTS IN THE YEARAGO PERIOD THE 1993 SECOND QUARTER INCLUDED A CHARGE OF 146 MILLION FOR THE EARLY RETIREMENT OF 290 MILLION IN DEBT AND A GAIN OF 79 MILLION FROM AN ASSET SALE THE SAME PERIOD LAST YEAR INCLUDED A GAIN OF 296 MILLION FROM AN ASSET SALE AND A CHARGE OF 213 MILLION FOR A PLANT SHUTDOWN AND ASSET WRITEDOWN SALES FELL TO 3 BILLION IN THE SECOND QUARTER FROM 307 BILLION GOODYEAR BASED IN AKRON OHIO MAKES TIRE AND RUBBER PRODUCTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ITS SHARES CLOSED AT 4225 DOWN 875 CENTS 9307280051 930728 LEISURE & ARTS ARCHITECTURE CENTENNIAL OF COLUMBIAN FAIR BY EVE M KAHN CHICAGO A HUNDRED YEARS AGO THIS CITY FLEXED ITS BROAD SHOULDERS AND AMAZED THE WORLD WITH THE UNABASHEDLY OPTIMISTIC AND VERY INFLUENTIAL ALLNEOCLASSICAL WORLD'S COLUMBIAN EXPOSITION NOW STILL UNCHASTENED IF A LOT MORE CYNICAL THE CITY IS CELEBRATING THE CENTENNIAL WITH A DOZEN EXHIBITS AND AT LEAST THREE SIGNIFICANT NEW BOOKS SCRUTINIZING EVERY CRUMB OF ARCHITECTURE THAT LED UP TO OR EMANATED FROM THE FAIR THE MAIN EVENT IN THIS CHAOTIC AND INCONCLUSIVE FEST OF BOOSTERISM AND REMORSE IS THE ART INSTITUTE'S DISPASSIONATELY TITLED CHICAGO ARCHITECTURE AND DESIGN 19231993 RECONFIGURATION OF AN AMERICAN METROPOLIS UP UNTIL AUG 29 ASSEMBLED BY THE INSTITUTE'S JOHN ZUKOWSKY WITH A GROUP OF ARCHITECTS LED BY THE EXUBERANT STANLEY TIGERMAN THE EXHIBIT EXPLAINS HOW 70 YEARS OF BRAVE NEW ARCHITECTURAL SOLUTIONS TRIED TO REARRANGE CHICAGO AND THEN SPUTTERED OUT AND HOW ALL ARCHITECTS HAVE ENDED UP EQUALLY CULPABLE AND EQUALLY PRAISEWORTHY IT'S A MAD MADDENING NONJUDGMENTAL SWIRL AT THE EXHIBIT'S ENTRANCE YOU TREAD ON THE NAMES OF NOTEWORTHY 20THCENTURY CONTRIBUTORS TO THE CHICAGO SKYLINE FROM RELATIVE UNKNOWNS SUCH AS BELLI & BELLI AND POND & POND TO PROMINENT SHOWMEN SUCH AS HELMUT JAHN THE NAMES ARE EVEN PAINTED WITHOUT VARIATIONS IN LETTER SIZE OR SPACES BETWEEN WORDS EIGHT PARALLEL AISLES OPEN ONTO THE SARCASTIC WELCOME MAT EACH COVERING A FACET OF CHICAGO'S GROWTH TRANSPORTATION RECREATION SHOPPING AND EACH ARRANGED CHRONOLOGICALLYSORT OF YOU ARE EXPECTED TO CRUISE UP AND DOWN THE EIGHT AISLES AS IF SNAKING THROUGH A SUPERMARKET SO HALF THE TIME YOU TRAVEL FORWARD IN TIME AND HALF BACKWARD IF THAT'S NOT ENOUGH TO SCRAMBLE YOUR BRAINWAVES A TOTAL OF 657 MODELS AND DRAWINGS LINE THE WALLS IT'S HARD NOT TO LONG FOR THE CLARITY OF PHOTOGRAPHS BUT THEY ARE MAINLY TO BE FOUND IN THE 10POUND EXHIBITION CATALOG ALONG WITH A TEXT THAT COULD NOT BE MORE SCHOLARLY AND STRAIGHTFACED THE SHOW'S CAPTIONS RARELY REVEAL IF A STRUCTURE WAS ERECTED AS PLANNED AND IF IT STILL EXISTS FOR THAT YOU'LL HAVE TO TURN TO THE NEW 541PAGE AMERICAN INSTITUTE OF ARCHITECTS GUIDE TO CHICAGO ARROWS ON CAPTION PANELS SOMETIMES POINT TOWARD THE OBJECT DESCRIBED SOMETIMES AWAY GREAT AND MIDDLING DESIGN ACHIEVEMENTS MINGLE FREELY A MODEL OF MR JAHN'S EYEPOPPING STATE OF ILLINOIS CENTER POSES NEAR A LOCALLY MANUFACTURED FAUXMALACHITE RADIO NOT FAR FROM PLANS FOR A 1950S SUBURBAN BEAUTY PARLOR AS YOU TRY TO MAKE SENSE OF ALL THIS JACKHAMMER NOISES POUR OUT OF LOUDSPEAKERS OVERHEAD MR TIGERMAN HAS BEEN HAVING FUN LIKE THIS FOR DECADES IN 1976 HE BUILT A HOUSE WITH A FLOOR PLAN SHAPED LIKE A PHALLUS IN 1986 HE DESIGNED A GARAGE WITH A TURQUOISE FACADE BASED ON THE COLORS OF '57 CHEVROLETS IN 1989 HE LOOKED BACKWARD BRIEFLY TO CONCOCT AN ALLNEOCLASSICAL POWER STATION EVEN THOUGH HE NOW CALLS CLASSICISTS COWARDS LAST YEAR HE CALMED DOWN ENOUGH TO CREATE AN ENERGY MUSEUM BASED ON A PLAIN 19THCENTURY FACTORY AND WHILE NO PREDICTIONS LOOM AT THE 1993 END OF ANY EXHIBIT AISLE YOU GET THE FEELING THAT MR TIGERMAN DOESN'T EXPECT THE PAGEANT OF ECLECTICISM FAILURE ACCIDENT AND CHANGE FOR CHANGE'S SAKE TO EVER END IF THAT SOUNDS BLASE OR CYNICAL MR TIGERMAN SAYS HE DIDN'T MEAN IT THAT WAY AS HE TOOK ME ON A TOUR THROUGH THE EXHIBIT HE PRESENTED HIMSELF AS A LONGTIME IDEALIST HE'S NOW FOUNDING A THINK TANK CALLED ARCHEWORKS HE EXPLAINS AIMED AT SMALLSCALE ARCHITECTURAL SOLUTIONS THAT IMPROVE CITIES WITHOUT CAUSING NEW PROBLEMS ITS FIRST PROJECTS SEEM PROMISING IF UNBUILDABLE SOME OF MR TIGERMAN'S FORMER STUDENTS AT THE UNIVERSITY OF ILLINOIS AT CHICAGO AND ONE OF ARCHEWORKS' FUTURE STAFF MEMBERS RECENTLY CONTRIBUTED TO A BOOK OF PLANNING PROPOSALS CALLED SPECX A MINOR URBANISM FOR A SECOND CITY IT SUGGESTS FOR INSTANCE PLACING COMMODITYTRADING PITS AT THE SITES OF LONGVANISHED INDIAN TRAILS ACROSS CHICAGO INSTALLING WELLPOLICED NEUTRAL PASSAGEWAYS AT THE EDGES OF CHICAGO'S GANG ZONES AND ALLOWING ZONING TO DECAY OVER TIME LIKE RADIOACTIVE ISOTOPES RESULTING IN AN UNSTABLE MAP WITH FLUID INTENSITIES LESS WIDEEYED IDEALISM IS ON VIEW HERE THROUGH AUG 7 AT THE CHICAGO ATHENAEUM IN THE FORM OF THE CHICAGO TRIBUNE ARCHITECTURE COMPETITION FOR PUBLIC HOUSING 54 DRAWINGS OF IMPROVEMENTS THE ARTIST/DESIGNERS THINK SHOULD BE MADE TO THE DEPRESSING LOCAL HOUSING PROJECT KNOWN AS CABRINIGREEN THE DRAWINGS WERE SUBMITTED TO A CONTEST SPONSORED BY THE TRIBUNE TO COMMEMORATE THE 71ST ANNIVERSARY OF THE PAPER'S HEADQUARTERDESIGN COMPETITION THE WINNER BECAME THE TRIB TOWER HOWELLS & HOOD'S ERADEFINING ARTDECO SKYSCRAPER THE CURRENT CONTEST'S DRAWINGS PORTRAY CABRINIGREEN SPROUTING BRILLIANTHUED COCKEYED TURRETS ON ITS NOWCRUMBLING ROOFLINES AND CABRINIGREEN'S SYMMETRICAL STREETS DESCENDANTS OF THAT LONGAGO EXPOSITION REOPENED FOR VISTAS AND STROLLS INSTEAD OF BLOCKADED IN WASTED EFFORTS TO KEEP OUT CRIMINALS IF BUILT THESE CHEERFUL VISIONS MIGHT EASILY END UP RUINED JUST LIKE SO MANY OTHER FOOLHARDY WELLMEANT CHICAGO SOLUTIONS TO THE SHELTER PROBLEMS OF YESTERYEAR BUT FOR NOW OH WHAT HOPE THEY RADIATE THAT WE HAVE LEARNED TO PLAN ON A GRAND SCALE FOR CHAOS AND ORDER TO HAPPILY COEXIST 9307280050 930728 HEARD ON THE STREET SOUTH AFRICA STOCKS' OUTLOOK APPEARS BRIGHTER AS MANDELA PROMPTS MANAGERS TO INVEST THERE BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE TARNISHED IMAGE OF SOUTH AFRICA'S STOCK MARKET MAY BE ABOUT TO GET BRIGHTER AS NELSON MANDELA ENCOURAGES MONEY MANAGERS TO DROP THEIR ANTIAPARTHEID ACTIVISM AND SWITCH TO PROSOUTH AFRICA BOOSTERISM THE RESULT COULD BE HIGHER PRICES FOR SOUTH AFRICAN STOCKS WHICH POSTED A GOLDPROPELLED LEAP OF 116 IN THE YEAR THROUGH JUNE BUT THEN TUMBLED THIS MONTH LONG VIEWED AS AN INTERNATIONAL PARIAH BECAUSE OF ITS SYSTEM OF RACIAL SEGREGATION SOUTH AFRICA NOW APPEARS JUST A FEW CRUCIAL STEPS AWAY FROM BECOMING A MULTIRACIAL DEMOCRACY ACCORDINGLY AMERICANS' DECADEOLD DIVESTMENT IN SOUTH AFRICA CAMPAIGN SEEMS TO BE ON THE WAY OUT APPARENTLY WITH HELP FROM MR MANDELA LISTEN TO NEW YORK STATE COMPTROLLER H CARL MCCALL WHO SAYS HE RECENTLY HAD DINNER IN THE US WITH MR MANDELA THE HEAD OF THE BLACKCONTROLLED AFRICAN NATIONAL CONGRESS WHICH IS EXPECTED TO GAIN THE LEADING ROLE IN A POSTAPARTHEID GOVERNMENT IF ELECTIONS ARE HELD AS EXPECTED NEXT APRIL MR MANDELA STATED THAT THE ANC EXPECTS TO CALL FOR THE LIFTING OF SANCTIONS WITHIN A FEW WEEKS FROM NOW THE COMPTROLLER RELATES I INFORMED MR MANDELA THAT AT SUCH TIME I INTENDED TO COMMENCE A REINVESTMENT CAMPAIGN WITH THE PORTFOLIO COMPANIES OF THE 56 BILLIONASSET COMMON RETIREMENT FUND THE PENSION FUND FOR NEW YORK STATE EMPLOYEES INSTEAD OF RESTRICTING INVESTMENTS WE NEED TO ENCOURAGE COMPANIES TO INVEST IN SOUTH AFRICA SAYS MR MCCALL THAT DOESN'T MEAN HE WILL BE STUFFING HIS PORTFOLIO WITH SOUTH AFRICAN STOCKS IT JUST MEANS HE WILL APPLAUD RATHER THAN BEING UPSET IF THE COMPANIES WHOSE STOCKS ARE IN HIS PORTFOLIO DO BUSINESS IN SOUTH AFRICA ALTHOUGH FORMER PRESIDENT BUSH LIFTED FEDERAL RESTRICTIONS AGAINST INVESTING IN SOUTH AFRICA IN 1991 AT LEAST 166 US CITIES COUNTIES AND STATES MAINTAIN SOME TYPE OF INVESTMENT AND BUSINESSDEALINGS RESTRICTIONS RELATED TO SOUTH AFRICA ACCORDING TO THE INVESTOR RESPONSIBILITY RESEARCH CENTER IN WASHINGTON ONCE CITIES AND STATES EASE RESTRICTIONS SEVERAL MAJOR BROKERAGE FIRMS ARE EXPECTED TO REBUILD BUSINESS TIES SEVERED IN THE 1980S SUCH AS MAKING MARKETS IN SOUTH AFRICAN STOCKS LOS ANGELES'S CITY COUNCIL HAS JUST INITIATED A REVIEW OF ITS TOUGHRESTRICTIONS POLICY TOWARD SOUTH AFRICA AND MAY CONSIDER LIFTING CURBS IN THE NEAR FUTURE SOUTH AFRICA'S WALDEMAR ZASTRAU DEPUTY CONSUL GENERAL IN NEW YORK SAYS EVERYTHING SEEMS TO INDICATE THAT WE ARE PROBABLY LOOKING FOR A CALL FROM THE ANC TO END SANCTIONS COMING SOMETIME NEXT MONTH STOCK PRICES COULD BENEFIT THE PRICE/EARNINGS MULTIPLE OF THE 669 STOCKS LISTED ON THE JOHANNESBURG STOCK EXCHANGE WAS ABOUT 12 LAST WEEK WHICH SOME ANALYSTS CALL PRICEY STILL MANY SAY CORPORATE PROFITS COULD EVENTUALLY RISE ON THE INCREASED TRADE AND INVESTMENT GENERATED BY THAWING WORLD RELATIONS WITH SOUTH AFRICA ONCE RESTRICTIONS ARE REMOVED ESPECIALLY IN PLACES LIKE NEW YORK AND CALIFORNIA THAT WILL RELEASE A GREAT DEAL OF MONEY THAT WILL BE ALLOWED TO FLOW INTO SOUTH AFRICA SAYS STEPHEN OKE HEAD OF RESEARCH AND SALES FOR SOUTH AFRICA SECURITIES AT SMITH NEW COURT IN LONDON WITH SUCH INFLOWS SOUTH AFRICA'S ECONOMY COULD EMERGE FROM RECESSION AND GROW AS MUCH AS 5 A YEAR SAYS JOHN VAN ECK CHAIRMAN OF VAN ECK ASSOCIATES WHOSE MUTUAL FUNDS HAVE ABOUT 300 MILLION INVESTED IN SOUTH AFRICA MOSTLY IN GOLD MINING STOCKS IT'S AN EMERGING GROWTH COUNTRY WITH GOOD POPULATION GROWTH AND A GOOD INFRASTRUCTURE HE SAYS BUT SOUTH AFRICAN STOCKS SHOULD BE A SMALL PORTION OF A PORTFOLIO WILLING TO ACCEPT POLITICAL RISK EVEN AFTER ELECTIONS THE ANC WILL HAVE ITS HANDS FULL BLACK UNEMPLOYMENT HOVERS AROUND 48 THERE COULD BE MORE TURMOIL AND VIOLENCE EVEN CIVIL WAR MR VAN ECK THINKS US INVESTORS MIGHT STAY WITH THE BIGGEST COMPANIES I DON'T SEE A LOT OF PEOPLE RUSHING INTO SOUTH AFRICAN SECURITIES EXCEPT DEBEERS AND ANGLO AMERICAN CORP STILL IF NEW YORK LIFTS RESTRICTIONS THAT WOULD ENCOURAGE OTHER PENSION FUNDS TOWNS AND COLLEGE ENDOWMENTS TO ACT SAYS BARBARA MORROW PRESIDENT OF MONEY MANAGER BARRONETT GLOBAL INVESTORS MOREOVER SHE SAYS SHE WOULD FORM A PUBLICLY TRADED INVESTMENT FUND AIMED AT SOUTH AFRICA WHERE SHE LIKES HEALTHCARE RETAILING AND CONSUMER GOODS COMPANIES ESPECIALLY THOSE THAT SERVE THE GROWING BLACK MIDDLE CLASS BUYING SOUTH AFRICAN STOCKS ISN'T THE ONLY WAY TO PROFIT FROM THE CHANGING INVESTMENT CLIMATE THERE SALOMON BROTHERS ANALYSTS CITE A NUMBER OF US COMPANIES BLACKLISTED BECAUSE THEY OPERATE IN SOUTH AFRICA TWO FUNDS IN OREGON AND FAIRFAX COUNTY VA HAVE EASED RESTRICTIONS SAYS DAVID G SHULMAN SALOMON'S CHIEF EQUITY STRATEGIST IF CURBS ARE LIFTED ELSEWHERE INDEXED PORTFOLIOS THAT ARE CURRENTLY SOUTH AFRICAFREE COULD SWITCH OVER TO REPRESENT THE FULL STANDARD & POOR'S 500 HE SAYS IT WOULD NOT HAPPEN ALL AT ONCE BUT IT WOULD HAPPEN AMONG THE LARGER STOCKS HE SAYS COULD BENEFIT ARE PFIZER CATERPILLAR TEXACO SCHLUMBERGER DUPONT RAYTHEON INGERSOLLRAND NALCO CHEMICAL AND KIMBERLYCLARK 9307280049 930728 BUSINESS BRIEF CONTINENTAL AIRLINES US CARRIER AND AIR FRANCE SIGN MARKETING AGREEMENT AIR FRANCE AND CONTINENTAL AIRLINES SIGNED A MARKETING AGREEMENT THAT BOTH CARRIERS HOPE WILL BOOST THEIR FORTUNES ON THE COMPETITIVE NORTH ATLANTIC MARKET UNDER TERMS AIR FRANCE AND CONTINENTAL WILL COORDINATE THEIR SCHEDULES SHARE TERMINALS AT PARIS NEWARK NJ AND HOUSTON LINK THEIR FREQUENT FLIER PROGRAMS AND LAUNCH JOINT ADVERTISING CAMPAIGNS AND PROMOTIONS THE MOVE IS ANOTHER EXAMPLE OF THE TREND TOWARD GLOBAL PARTNERSHIPS BETWEEN AIRLINES BUT UNLIKE OTHER HIGHPROFILE TRANSATLANTIC ALLIANCES SUCH AS THE ONE BETWEEN USAIR GROUP INC AND BRITISH AIRWAYS AIR FRANCE AND CONTINENTAL AREN'T SWAPPING EQUITY STAKES NOR ARE THEY CODE SHARING WHEN AIRLINES BOTH GIVE THEIR OWN FLIGHT NUMBER TO THE SAME FLIGHT NEVERTHELESS THE ARRANGEMENT FILLS IN WEAKNESSES IN BOTH CARRIERS' ROUTE NETWORKS AND DOESN'T PLACE THEM IN COMPETITION WITH EACH OTHER CONTINENTAL IS A SMALL PLAYER IN EUROPE AND NEEDS TO EXPAND ITS PRESENCE THERE WHILE IN THE US IT HAS A STRONG ROUTE NETWORK AND A LOT OF ROUTES TO LATIN AMERICA 9307280048 930728 BUSINESS BRIEF NEW ENGLAND ELECTRIC SYSTEM UTILITY TO COORDINATE PLANS WITH REGULATORS IN 3 STATES NEW ENGLAND ELECTRIC SYSTEM SAID IT AGREED WITH UTILITY REGULATORS IN MASSACHUSETTS RHODE ISLAND AND NEW HAMPSHIRE TO ESTABLISH COORDINATED PLANNING FOR ITS OPERATIONS IN THE THREE STATES UNDER THE AGREEMENT THE WESTBOROUGH MASS UTILITY'S OVERALL POWERDEMAND FORECASTS AND GENERATING RESOURCE PLANS WILL BE FILED SIMULTANEOUSLY WITH REGULATORS IN EACH OF THE THREE STATES IN WHICH IT OPERATES NEW ENGLAND ELECTRIC SAID REGULATORS IN ONE STATE MAY VETO THE UTILITY'S PLANS TO BUILD POWER PLANTS IN OTHER STATES THUS ALL STATES MUST BE SATISFIED BEFORE ANY SIGNIFICANT NEW PROJECT MOVES FORWARD ANYWHERE WITHIN THE SYSTEM THE UTILITY SAID THE AGREEMENT WILL HELP ENSURE THAT THE UTILITY'S PLANNING PROCESS WON'T GET BOGGED DOWN BY WRANGLING AMONG THE STATES WHEN ITS PLANS ARE SUBMITTED TO FEDERAL REGULATORS FOR APPROVAL A UTILITY SPOKESMAN SAID IT ALSO WILL ALLOW DECISIONS TO BE MADE IN A TIMELY FASHION UNDER STATE LAW WITHOUT AN ADDITIONAL LAYER OF REGULATION OR MORE FEDERAL INVOLVEMENT IN STATE AND LOCAL DECISIONMAKING THE COMPANY ADDED 9307280047 930728 INTERNATIONAL BRIEF DAIMLERBENZ AG NEW YORK STOCK EXCHANGE TO LIST AUTO MAKER'S ADRS DAIMLERBENZ AG'S AMERICAN DEPOSITARY RECEIPTS WILL BEGIN TRADING ON THE NEW YORK STOCK EXCHANGE ON OCT 5 THE GERMAN COMPANY SAID WITH THE MOVE DAIMLERBENZ BASED IN STUTTGART WILL BECOME THE FIRST GERMAN COMPANY WITH A LISTING ON THE BIG BOARD THE ANNOUNCEMENT IS THE CULMINATION OF YEARS OF NEGOTIATION BETWEEN DAIMLERBENZ GERMANY'S LARGEST INDUSTRIAL GROUP AND THE SECURITIES AND EXCHANGE COMMISSION IN THE PAST THE SEC HAS BLOCKED GERMAN COMPANIES FROM TAPPING THE US MARKET BECAUSE THE GERMAN FIRMS DIDN'T MEET THE SEC'S STRICT REGULATIONS FOR REPORTING FINANCIAL RESULTS NEITHER THE SIZE NOR THE PRICE OF THE ADR OFFERING HAS BEEN DETERMINED YET DAIMLER IS EXPECTED TO ADRS IN SMALLER DENOMINATIONS THAN GERMANLISTED DAIMLER SHARE DAIMLER CLOSED AT 690 MARKS OR ABOUT 400 YESTERDAY DAIMLERBENZ IS THE HOLDING COMPANY FOR MERCEDESBENZ AG'S TRUCK AND LUXURY CAR DIVISION DAIMLER'S OPERATIONS ALSO INCLUDE THE AEG AG ELECTRONICS DIVISION AND THE DEUTSCHE AEROSPACE AG UNIT 9307280046 930728 TUESDAY'S MARKETS STEEL RULING HURTS STOCKS BONDS DECLINE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS EDGED LOWER AFTER A FEDERAL RULING AGAINST THE STEEL INDUSTRY JARRED THE MARKET BONDS SLIPPED AND THE DOLLAR ENDED MIXED THE DOW JONES INDUSTRIAL AVERAGE LOST 224 POINTS TO 356546 RETREATING FROM ITS ALLTIME HIGH SET MONDAY STANDARD & POOR'S 500STOCK INDEX EASED 085 POINT TO 44824 AND THE NASDAQ COMPOSITE INDEX TUMBLED 354 TO 701 STOCKS STARTED THE DAY HIGHER BUT PULLED BACK SOON AFTER THE CONFERENCE BOARD REPORTED THAT CONSUMER CONFIDENCE WEAKENED SLIGHTLY THIS MONTH THE INDUSTRIAL AVERAGE QUICKLY RECOVERED FROM THE NEGATIVE ECONOMIC REPORT AS INVESTORS SEIZED UPON SOME ENCOURAGING NEWS FROM INTERNATIONAL BUSINESS MACHINES THOUGH THE BIG COMPUTER COMPANY REPORTED A HUGE SECONDQUARTER LOSS ANALYSTS SAID THE COMPANY'S OPERATING EARNINGS WERE BETTER THAN SOME INVESTORS EXPECTED PROGRAM TRADERS TO BID UP THE SHARES 3 1/4 TO 45 5/8 MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAID STOCKS WERE KNOCKED LOWER A SECOND TIME WHEN THE INTERNATIONAL TRADE COMMISSION UNVEILED A SET OF RULINGS AGAINST THE STEEL INDUSTRY IN RESPONSE BETHLEHEM STEEL TUMBLED 3 7/8 TO 14 7/8 USXUS STEEL PLUNGED 4 3/4 TO 31 7/8 NUCOR PLUMMETED 4 1/2 TO 81 AND INLAND SLUMPED 3 1/4 TO 26 3/8 MR METZ SAID THE MARKET'S REACTION TO THE FEDERAL STEEL RULINGS ILLUSTRATES HOW NERVOUS INVESTORS ARE ABOUT OWNING STOCKS IT'S A RATHER JITTERY MARKET HE SAID TRADERS ARE LOOKING FOR INDIVIDUAL STOCKS RATHER THAN GETTING CAUGHT UP IN PERVASIVE BULLISHNESS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 037 TO 10710 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2525 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 855 ISSUES ADVANCED AND 1054 DECLINED BOND PRICES EASED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL LESS THAN 1/8 OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 668 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17278 MARKS AND 10608 YEN COMPARED WITH 17245 MARKS AND 10670 YEN MONDAY 9307280045 930728 INTERNATIONAL BRIEF BAYERISCHE MOTOREN WERKE AG GROUP NET INCOME FELL 39 IN 1ST HALF TO 1479 MILLION BAYERISCHE MOTOREN WERKE AG REPORTED GROUP NET INCOME PLUNGED 39 TO 255 MILLION MARKS 1479 MILLION IN THE FIRST HALF FROM 421 MILLION MARKS LAST YEAR THE COMPANY PREVIOUSLY SAID SALES DROPPED 88 TO 1474 BILLION MARKS THE LUXURYCAR MAKER EMPHASIZED IN ITS REPORT THAT IT HAS WEATHERED THE GERMAN RECESSION BETTER THAN ITS COMPETITION WHILE THE GERMAN AUTOMOBILE INDUSTRY COLLECTIVELY HAS SEEN ITS OUTPUT PLUNGE 25 IN THE FIRST HALF BMW LIMITED ITS DROP IN PASSENGERCAR PRODUCTION TO 12 WITH MANUFACTURING DOWN BY 35910 VEHICLES TO 277076 FROM 312986 THE COMPANY SAID THE 1993 FIRST HALF WHICH COINCIDED WITH A RECESSION IN GERMANY AND MANY OF BMW'S IMPORTANT EUROPEAN MARKETS CONTRASTS WITH A HIGHDEMAND PERIOD IN THE FIRST HALF OF 1992 WHEN THE COMPANY EMPLOYED EXTRA SHIFTS AND KEPT ITS PLANTS OPEN DURING VACATION PERIODS IT SAID 9307280044 930728 ENTERPRISE GOVERNMENT WATCH SUPPORT OF TEXTILE FIRMS HAS SEEDS OF AN AMERICA INC' BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL SMALL TEXTILE FIRMS STAND TO GAIN BIG FROM USBACKED RESCUE OPERATION THE DEPARTMENT OF ENERGY IN A LITTLE NOTED MOVE IS THROWING ITS VAUNTED LABORATORY SYSTEM BEHIND A PROJECT TO HELP THE 200 BILLION TEXTILE INDUSTRY COMPETE AGAINST CHEAP IMPORTS THE ARCHITECTS OF THE AMERICAN TEXTILE PARTNERSHIP OR AMTEX SAY THEIR GOVERNMENTINDUSTRY COALITION IS THE MOST AMBITIOUS EFFORT SINCE THE END OF THE COLD WAR TO USE THE LABS' RESEARCH BRAINPOWER TO REVITALIZE A NONDEFENSE INDUSTRY WHILE BIG CAPITALINTENSIVE GIANTS SUCH AS DUPONT CO ARE HELPING TO SHAPE THE PROGRAM THE MAJOR BENEFICIARIES WILL BE THE 21000 LABORINTENSIVE PRODUCERS OF APPAREL HOME FURNISHINGS AND OTHER FABRICS THAT ARE AT THE HEART OF THE TROUBLED SECTOR THESE COMPANIES WHICH AVERAGE 50 EMPLOYEES ARE OFTEN HIGHLY EFFICIENT BUT THEY ARE SUFFERING AS CHEAP THIRD WORLD IMPORTS HAVE NEARLY QUADRUPLED SINCE 1980 AND HAVE CAPTURED HALF OF THE US MARKET IN THE SAME PERIOD THE DOMESTIC INDUSTRY'S WORK FORCE HAS FALLEN BY 420000 TO ABOUT TWO MILLION JOBS WE'RE NOT GOING TO TAKE ON THE WORLD IN PRICE SAYS RICHARD QUISENBERRY EXECUTIVE DIRECTOR OF AMTEX'S INDUSTRY PROGRAM OFFICE WE'RE GOING TO ATTACK INVENTORY AMTEX PLANS TO CREATE AN ELECTRONIC HIGHWAY LINKING FIBER AND TEXTILE PRODUCERS APPAREL AND FABRIC MAKERS AND WHOLESALE AND RETAIL DISTRIBUTORS MR QUISENBERRY SAYS LACKING COMPLETE INFORMATION ABOUT BUYING TRENDS COMPANIES TODAY OVERPRODUCE GOODS AND STORE THE SURPLUS AT HUGE EXPENSE HE EXPLAINS INSTANT ACCESS TO CURRENT DATA WOULD ENABLE THE INDUSTRY TO HALVE THE 25 BILLION COST OF THAT INEFFICIENCY AND REDUCE THE AVERAGE TIME FOR DELIVERING GOODS FROM FACTORY TO STORE TO 26 WEEKS FROM 55 WEEKS AMTEX LAUNCHED IN MARCH WITH THE PARTICIPATION OF EIGHT OF THE DEPARTMENT OF ENERGY'S NINE BIG LABS IS OUT TO SAVE THE AMERICAN TEXTILE INDUSTRY MR QUISENBERRY SAYS GERALD WORK A SENIOR MANAGER AT PACIFIC NORTHWEST LABORATORIES IN RICHLAND WASH AND CHAIRMAN OF THE AMTEX OPERATING BOARD SAYS THE UNDERTAKING COMES AT A TERRIBLY IMPORTANT TRANSITION TIME FOR OUR NATION IT IS TIME FOR US TO DO FOR THE REST OF US INDUSTRY WHAT THE NATION SO SUCCESSFULLY DID FOR 40 YEARS FOR THE MILITARY PORTION IS THIS THE BEGINNING OF A MIGHTY AMERICA INC ALLIANCE OF GOVERNMENT AND INDUSTRY ANALOGOUS TO JAPAN INC IN MY VISION YES MR WORK SAYS NEW JERSEY LOOSENS ENVIRONMENTAL NOOSE BUT SOME FIRMS STILL GAG FOR YEARS BUSINESSES LARGE AND SMALL GRIPED THAT THE STATE'S 1983 ENVIRONMENTAL CLEANUP RESPONSIBILITY ACT WAS CHOKING THEM WITH ITS REQUIREMENT THAT THEY RESTORE MANUFACTURING SITES TO A PRISTINE CONDITION BEFORE SELLING THEM THEY COMPLAINED THAT ECRA REGARDED AS ONE OF THE TOUGHEST CLEANUP LAWS IN THE NATION UNFAIRLY HELD THEM RESPONSIBLE FOR PREVIOUS OWNERS' POLLUTING SINS MOREOVER THEY SAID THE LAW'S VAGUE WORDING GAVE STATE ENVIRONMENTAL REGULATORS LICENSE TO HARASS THEM ENDLESSLY SMALL COMPANIES GROUSED THAT THEY COULDN'T AFFORD THE COMPLIANCE COSTS THAT BIG CORPORATIONS COULD ABSORB THE POLITICIANS APPARENTLY LISTENED LAST MONTH THE STATE LEGISLATURE REPLACED ECRA WITH THE INDUSTRIAL SITE RECOVERY ACT WHOSE TITLE EVEN SOUNDS MORE PROBUSINESS IT ALSO SETS MORE FLEXIBLE CLEANUP STANDARDS ITS SUPPORTERS SAY AND IT CREATES A 50 MILLION FUND TO HELP OWNERS PAY FOR CLEANING UP PROPERTY THAT THEY DIDN'T CONTAMINATE IT MAKES THE WORLD A LOT SIMPLER TO DEAL WITH SAYS JIM SINCLAIR FIRST VICE PRESIDENT OF THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION WHOSE 3000 MEMBERS ARE MOSTLY SMALL AND MEDIUMSIZE BUSINESSES THE GROUP SAYS THE NEW LAW NEEDS REFINING BUT IS A VAST IMPROVEMENT STATE SEN HENRY P MCNAMARA THE REPUBLICAN AUTHOR OF THE NEW LAW SAYS HE THINKS THE NEW LAW REPRESENTS A TURNING POINT FOR NEW JERSEY BUSINESS BUT SOME SMALLBUSINESS OWNERS STILL EXPECT THE LAW TO BE ONEROUS IT'S LIKE CHANGING THE NAME OF A SKUNK SAYS FRANK REICK OWNER OF FLUORAMICS INC A MAHWAH NJ MAKER OF LOWFRICTION LUBRICANTS WHO SAYS HE HAS SPENT 60000 IN LEGAL FEES IN A CLEANUP DISPUTE WITH THE STATE YOU STILL HAVE 4000 BUREAUCRATS IN TRENTON THE STATE CAPITAL MR REICK SAYS YOU CAN'T CHANGE THEIR MINDSET THEY'RE OUR WORST FORM OF POLLUTION OWNERS OF A FLORIDA FREETRADE ZONE ARE ASKING UNCLE SAM TO SCRAM GERMAN LEIVA SAYS HE AND HIS WIFE MARIA CAMILA HAVE INVESTED 30 MILLION IN THE MIAMI FREE ZONE CORP SINCE THEY STARTED IT 14 YEARS AGO THEY PAY 1 MILLION A YEAR IN PROPERTY TAXES AND COMPANIES IN THE COMPLEX EMPLOY 1500 WORKERS MR LEIVA SAYS THE COMPANY STRUGGLED IN THE RED FOR YEARS TURNING PROFITABLE ONLY IN 1990 HE ADDS SO HE SAYS HE WAS OUTRAGED WHEN THE WYNWOOD COMMUNITY ECONOMIC DEVELOPMENT CORP A NONPROFIT GOVERNMENTFUNDED ORGANIZATION IN MIAMI'S LOWINCOME WYNWOOD SECTION GOT A FEDERAL LICENSE TO SET UP A RIVAL FREETRADE ZONE HE WAS EVEN MORE FURIOUS WHEN THE WYNWOOD OUTFIT APPLIED FOR A 55 MILLION GRANT FROM COMMERCE DEPARTMENT FUNDS EARMARKED FOR VICTIMS OF HURRICANE ANDREW MR LEIVA'S COMPANY HAS FILED A LAWSUIT SEEKING TO REVOKE THE LICENSE AND HAS FILED OBJECTIONS TO THE GRANT WITH THE COMMERCE DEPARTMENT AMONG OTHER GROUNDS MR LEIVA CONTENDS THAT THE NEW PROJECT WOULD CONSTITUTE SUBSIDIZED COMPETITION THAT COULD DRAW BUSINESS AWAY FROM HIM THAT PROSPECT HURTS HIS POSITION IN EXPLORATORY TALKS HE IS HOLDING FOR HIS COMPANY'S POSSIBLE SALE TO DADE COUNTY FOR A PRICE IN THE 45 MILLION RANGE HE ADDS WILLIAM RIOS EXECUTIVE DIRECTOR OF THE WYNWOOD COMMUNITY ECONOMIC DEVELOPMENT CORP BRUSHES OFF MR LEIVA'S WORRIES THERE'S MORE THAN ENOUGH BUSINESS TO GO AROUND HE SAYS BESIDES HE SAYS HIS PROJECT HAS THE NOBLE GOAL OF CREATING JOBS IN A DEPRESSED NEIGHBORHOOD MR LEIVA'S COMPANY HAS WON SOME IMPORTANT ALLIES IN THE DISPUTE THE GREATER MIAMI CHAMBER OF COMMERCE HAS SIDED WITH IT PARTLY BECAUSE IT OBJECTS TO THE USE OF HURRICANERELIEF MONEY FOR AN AREA UNAFFECTED BY ANDREW BUT WHAT REALLY BOTHERS HIM SAYS WILLIAM CULLOM THE CHAMBER PRESIDENT IS THAT WYNWOOD'S PROPONENTS WANT TO TAKE GOVERNMENT MONEY AND GO IN COMPETITION WITH FREE ENTERPRISE SMALL TALK BIOTECHNOLOGY FIRMS HAIL THE SENATE'S UNANIMOUS PASSAGE OF THE BIOTECHNOLOGY PATENT PROTECTION ACT THAT EXPANDS PROTECTION FOR BIOTECHNOLOGY INVENTIONS CARL FELDBAUM PRESIDENT OF THE BIOTECHNOLOGY INDUSTRY ORGANIZATION PREDICTS ENACTMENT OF THE BILL BY THE CURRENT CONGRESS REP JAN MEYERS THE RANKING REPUBLICAN MEMBER OF THE HOUSE COMMITTEE ON SMALL BUSINESS INTRODUCES LEGISLATION TO POSTPONE THE 1994 WHITE HOUSE CONFERENCE ON SMALL BUSINESS FOR A YEAR SAYING POOR PLANNING WILL NECESSITATE THE DELAY 9307280043 930728 INTERNATIONAL BRIEF NIHON UNISYS FOUR ARE ARRESTED ON CHARGES OF STOCK PRICE MANIPULATION TOKYO PROSECUTORS ARRESTED FOUR PEOPLE ACCUSED OF MANIPULATING THE PRICE OF SHARES IN NIHON UNISYS A COMPUTER COMPANY 32OWNED BY UNISYS CORP THE PRICE OF NIHON UNISYS SHARES JUMPED AS HIGH AS 3700 YEN 3460 IN APRIL 1991 FROM 1500 YEN 14 IN AUGUST 1990 JAPANESE PRESS REPORTS SAID NIHON UNISYS WAS QUOTED TUESDAY AT 1390 YEN ON THE TOKYO STOCK EXCHANGE A PROSECUTION OFFICIAL SPEAKING ON CONDITION OF ANONYMITY SAID THE ARRESTS FOLLOWED A COMPLAINT BY THE SECURITIES AND EXCHANGE SURVEILLANCE COMMISSION JAPAN'S SECURITIES WATCHDOG ON MAY 21 HE SAID THE FOUR INCLUDED SPECULATOR MAKOTO ARAYA OF TEISHIN FUDO CO AND HIROSHI KIMURA FORMER MANAGING DIRECTOR OF SUMITOMO FUDOSAN FINANCE CO JAPANESE PRESS REPORTS SAID MR ARAYA ALLEGEDLY PLACED LARGE BUY AND SELL ORDERS IN NIHON UNISYS SIMULTANEOUSLY TO CREATE THE FALSE IMPRESSION AMONG AVERAGE INVESTORS THAT THE STOCK WAS POPULAR SUCH TRADING IS ILLEGAL MR KIMURA ALLEGEDLY LENT ARAYA 55 BILLION YEN TO FINANCE THE TRADING AND TOOK PART IN THE MANIPULATION THE REPORTS SAID 9307280042 930728 INTERNATIONAL BRIEF CREDIT LYONNAIS THOMSONCSF TO LIFT STAKE GIVE UP ITS ALTUS HOLDING FRANCE'S STATECONTROLLED BANK CREDIT LYONNAIS AND DEFENSEANDELECTRONICS GROUP THOMSONCSF ANNOUNCED YESTERDAY THAT CREDIT LYONNAIS WILL TAKE FULL CONTROL OF THEIR JOINT UNIT ALTUS FINANCE IN EXCHANGE FOR THOMSON BOOSTING ITS STAKE IN THE BANK THE MOVE IS WIDELY SEEN AS BEING THE FIRST STEP IN A COMPLICATED MANEUVER THAT COULD LEAD TO CIE GENERALE DES EAUX A FRENCH CONSTRUCTION GROUP TAKING A SIZABLE STAKE IN CREDIT LYONNAIS SUCH A MOVE WOULD ALLOW THE TROUBLED BANKING GROUP TO AUGMENT ITS FUNDS WITHOUT TURNING TO FINANCING FROM THE PUBLIC SECTOR CREDIT LYONNAIS AND THOMSON SAID IN A JOINT COMMUNIQUE THAT THE BANK WILL TAKE OVER THOMSON'S 32 HOLDING IN ALTUS IN EXCHANGE THOMSON WILL RECEIVE SHARES AND NONVOTING INSTRUMENTS KNOWN AS INVESTMENT CERTIFICATES TO BE CREATED BY CREDIT LYONNAIS THOMSON'S HOLDING IN CREDIT LYONNAIS WILL RISE TO 2156 FROM 28 9307280041 930728 FINANCING BUSINESS ONEX CORP ONEX CORP SAID IT EXPECTS TO RAISE 34 MILLION CANADIAN DOLLARS US266 MILLION FROM THE SALE OF 11 MILLION OF ITS FIVE MILLION SHARES OF AUTOMOTIVE INDUSTRIES HOLDING INC ONEX A HOLDING COMPANY BASED IN TORONTO SAID THE SHARES WOULD BE SOLD AS PART OF A LARGER OFFERING WHICH IS DUE TO CLOSE NEXT WEEK OF 42 MILLION AUTOMOTIVE INDUSTRIES SHARES THE TOTAL OFFERING INCLUDES THE SALE BY AUTOMOTIVE INDUSTRIES OF 19 MILLION NEW SHARES ALSO VARIOUS INSTITUTIONAL INVESTORS ARE SELLING 12 MILLION SHARES AN ONEX SPOKESMAN SAID ONEX SAID IT ALSO COULD SELL AS PART OF THE OFFERING AN ADDITIONAL 270000 AUTOMOTIVE INDUSTRIES SHARES FOLLOWING THE OFFERING ONEX SAID IT WILL HOLD ABOUT 20 OF AUTOMOTIVE INDUSTRIES' STOCK DOWN FROM 35 CURRENTLY ONEX SAID IT EXPECTS TO RECORD A GAIN OF C27 MILLION TO C31 MILLION FROM THE SHARE SALE 9307280040 930728 OTC FOCUS PRICES DECLINE AMID A POOR SHOWING IN TECH SECTOR AND EARNINGS CONCERNS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A POOR PERFORMANCE BY THE TECHNOLOGY SECTOR AND CONTINUED CONCERN OVER CORPORATE EARNINGS REPORTS CLAMPED DOWN ON NASDAQ MARKET PRICES THE NASDAQ COMPOSITE INDEX SLID STEADILY THROUGHOUT THE SESSION TO FINISH 354 POINTS OR 050 LOWER AT 70100 DECLINING ISSUES SQUEEZED PAST ADVANCERS 1391 TO 1306 ON THE NEW YORK STOCK EXCHANGE SHARES CLIMBED HIGHER EARLY ON BUT SANK LATER ON A SELLOFF IN THE STEEL GROUP THE DOW JONES INDUSTRIAL AVERAGE LOST 224 POINTS OR 006 TO END AT 356546 OFF ITS CLOSING RECORD HIGH SET MONDAY MARKET WATCHERS SAID A HUGE SECONDQUARTER LOSS OF 1410 A SHARE ON AN 89 BILLION CHARGE BY INTERNATIONAL BUSINESS MACHINES CORP SPARKED THE SELLING IN THE TECHNOLOGY SECTOR IBM ALSO SLASHED ITS QUARTERLY DIVIDEND FOR THE SECOND TIME IN A YEAR BUT IBM'S STOCK FARED WELL CLIMBING 3 1/4 TO 45 5/8 ON THE BIG BOARD AS THE TECHNOLOGY GIANT'S OPERATING LOSS WASN'T AS ONEROUS AS MANY HAD FEARED TRADERS SAID HOWEVER THAT IBM'S TRAVAILS DID HURT OTHER TECH STOCKS IBM'S EARNINGS BRING TO LIGHT SOME OF THE OTHER CONCERNS IN THE INDUSTRY SAID JIM BELLINI DIRECTOR OF EQUITY TRADING AT DAIN BOSWORTH INC PEOPLE ARE WONDERING IF THIS COULD MEAN ANOTHER ROUND OF PRICECUTTING AMONG THE TECHNOLOGY STOCKS THAT GOT SLAMMED WAS NOVELL INC OF PROVO UTAH WHICH TUMBLED 2 7/8 TO 18 3/8 THE SOFTWARE MAKER SAID LATE MONDAY THAT IT EXPECTS THIRDQUARTER NET INCOME BEFORE CHARGES TO DECLINE MODESTLY FROM EARNINGS OF 26 CENTS A SHARE REPORTED FOR THE SECOND QUARTER NOVELL TOPPED THE MOSTACTIVES LIST WITH VOLUME OF ABOUT 249 MILLION SHARES MORE THAN SEVEN TIMES THE AVERAGE DAILY LEVEL BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO SAID THE OVERTHECOUNTER MARKET HAS BEEN MORE REFLECTIVE OF PEOPLE'S WILLINGNESS TO BE PATIENT THAN HAS THE NEW YORK STOCK EXCHANGE THE TRADER SAID INVESTORS ARE STILL GRAPPLING WITH PRESIDENT CLINTON'S ECONOMIC PACKAGE WHICH IS AN UNCERTAINTY THAT IS HANGING OUT THERE HE SAID THE MARKET PLAYERS ARE ALSO CAUTIOUS AS THEY WAIT FOR SIGNS THAT THE ECONOMY IS STRONGER THAN RECENT DATA WOULD SUGGEST BUT THE LATEST READING ON CONSUMER CONFIDENCE DID LITTLE TO ASSUAGE ECONOMIC CONCERNS THE CONFERENCE BOARD SAID THE READING FELL TO 577 IN JULY FROM A REVISED 586 IN JUNE ALTHOUGH THE LATEST FIGURE IS ABOVE ECONOMISTS' EXPECTATIONS IT'S THE THIRD MONTHLY DECLINE IN A ROW TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME PICKED UP SLIGHTLY FROM MONDAY'S WEAK LEVEL OF 189902600 SHARES TO REGISTER 231430700 SHARES MICROSOFT IN REDMOND WASH DROPPED 2 3/4 TO 75 1/2 DESPITE SAYING IT RELEASED ITS WINDOWS NT OPERATING SYSTEM AND WINDOWS NT ADVANCED SERVER TO MANUFACTURING ALSO ADOBE SYSTEMS SLIPPED 3 TO 52 1/4 BMC SOFTWARE LOST 2 TO 55 1/4 CISCO SYSTEMS FELL 2 3/4 TO 52 3/4 AND SYNOPTICS PLUNGED 3 5/8 TO 28 5/8 ON THE UPSIDE ALDUS CORP OF SEATTLE ROSE 1 1/4 TO 17 1/4 AFTER IT RELEASED SECONDQUARTER EARNINGS OF TWO CENTS A SHARE THE SOFTWARE FIRM REPORTED A LOSS OF SIX CENTS A SHARE A YEAR EARLIER KOMAG INC GAINED 2 1/8 TO 19 AFTER IT REPORTED IMPROVED SECONDQUARTER EARNINGS OF 37 CENTS A SHARE AFTER THE CLOSE MONDAY THE MILPITAS CALIF MAKER OF FILM COMPONENTS FOR DISK DRIVES EARNED 16 CENTS A SHARE A YEAR EARLIER AMONG BANKS FIRST EASTERN CORP IN WILKES BARRE PA SOARED 5 TO 25 THE COMPANY SAID IT HAS SIGNED A DEFINITIVE AGREEMENT TO BE ACQUIRED BY PNC BANK IN A TRANSACTION VALUED AT 330 MILLION PNC ADDED 7/8 TO 29 1/2 ON THE BIG BOARD 9307280039 930728 BUSINESS BRIEFS TIE/COMMUNICATIONS INC SEYMOUR CONN A SUPPLIER OF BUSINESS COMMUNICATIONS SYSTEMS AND SERVICES WILL RELOCATE TO A NEW CORPORATE OFFICE IN OVERLAND PARK KANSAS CITY KANSAS HARRIS CORP MELBOURNE FLA A SEMICONDUCTOR COMPANY WAS AWARDED A 10YEAR 140 MILLION CONTRACT TO UPGRADE THE ALASKAN AIRTRAFFICCONTROL SYSTEM BY THE FEDERAL AVIATION ADMINISTRATION QUEBECOR PRINTING INC MONTREAL SIGNED A LETTER OF INTENT TO BUY 80 OF FRENCH COMMERCIAL PRINTER GROUPE FECOMME FOR 80 MILLION FRANCS 136 MILLION MORRISON KNUDSEN CORP BOISE IDAHO WAS AWARDED A 195 MILLION CONTRACT FROM THE MARYLAND DEPARTMENT OF TRANSPORTATION TO OVERHAUL AND REBUILD 19 PASSENGER TRAINS KIMBERLYCLARK CORP WILL BUILD A 33 MILLION TISSUE MILL IN BAHRAIN THROUGH ITS JOINTVENTURE COMPANY OLAYAN KIMBERLYCLARK ARABIA CO COUNTRYWIDE CREDIT INDUSTRIES INC A RESIDENTIAL MORTGAGE BANKER PURCHASED AN OFFICE BUILDING IN PLANO TEXAS FOR 1925 MILLION FROM FRANKLIN LIFE OF SPRINGFIELD ILL HIBERNIA CORP WILL ACQUIRE COMMERCIAL BANCSHARES INC FRANKLIN LA FOR 187 MILLION 9307280038 930728 BUSINESS BRIEF SILICON GRAPHICS INC NET INCOME OF 357 MILLION POSTED FOR FISCAL 4TH PERIOD SILICON GRAPHICS INC CAPPING A STRONG YEAR REPORTED NET INCOME FOR ITS FISCAL FOURTH QUARTER ENDED JUNE 30 OF 357 MILLION OR 47 CENTS A SHARE COMPARED WITH A LOSS IN THE YEAREARLIER PERIOD REVENUE IN THE QUARTER JUMPED 33 TO 3193 MILLION FROM 2398 MILLION A YEAR AGO IN THE YEAREARLIER QUARTER THE MOUNTAIN VIEW CALIF MAKER OF HIGHPOWERED WORKSTATIONS AND OTHER COMPUTERS HAD A NET LOSS OF 1092 MILLION OR 188 A SHARE THE LATEST QUARTER'S RESULTS INCLUDED A 28 MILLION GAIN FROM TAXLOSS CARRYFORWARDS FOR ITS FULL YEAR SILICON GRAPHICS EARNED 952 MILLION OR 130 A SHARE INCLUDING 75 MILLION FROM TAXLOSS CARRYFORWARDS REVENUE JUMPED 26 TO 109 BILLION FROM 8666 MILLION IN THE PRIOR FISCAL YEAR SILICON GRAPHICS HAD A NET LOSS OF 1237 MILLION OR 219 A SHARE SILICON GRAPHICS HAS BEEN BUOYED RECENTLY BY A STRING OF WELLRECEIVED NEW PRODUCTS THAT HAVE HELPED IT MAKE INROADS AGAINST WORKSTATION MARKET LEADER SUN MICROSYSTEMS INC IT ALSO GOT A PUBLICITY LIFT FROM THE BLOCKBUSTER MOVIE JURASSIC PARK WHICH USES DINOSAUR IMAGES CREATED BY SILICON GRAPHICS MACHINES THE EARNINGS WERE IN LINE WITH ANALYSTS' FORECASTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SILICON GRAPHICS SHARES FELL 125 CENTS APIECE TO 38875 9307280037 930728 INTERNATIONAL BRIEF SAPPORO BREWERIES LTD DIVIDEND EXPECTED TO RISE TO SEVEN CENTS FOR THE YEAR SAPPORO BREWERIES LTD JAPAN'S THIRDLARGEST BEER MAKER IS EXPECTED TO RAISE ITS ANNUAL DIVIDEND TO SEVEN YEN SEVEN US CENTS FROM FIVE YEN FOR THE YEAR ENDING DEC 31 THE COMPANY IN TOKYO WILL ANNOUNCE THE MOVE OFFICIALLY WHEN IT RELEASES ITS MIDTERM EARNINGS REPORT FRIDAY A SPOKESMAN SAID WE WANT TO MAKE SURE THAT OUR PAYOUT RATIO STAYS WELL ABOVE 33 HE SAID PAYOUT RATIO REFERS TO THE PERCENTAGE OF NET PROFIT THAT GOES TO SHAREHOLDERS FOR THIS YEAR THE COMPANY EXPECTS ITS NET INCOME TO TOP FIVE BILLION YEN 469 MILLION JUMPING ABOUT 36 FROM A PREVIOUS NET OF 368 BILLION YEN EXCLUDING SPECIAL DIVIDENDS TO COMMEMORATE ANNIVERSARIES AND SPECIAL COMPANY OCCASIONS THIS IS THE FIRST TIME IN 21 YEARS THAT SAPPORO HAS RAISED ITS PAYOUT FOR THE FIRST SIX MONTHS OF 1993 SAPPORO'S BEER SALES ROSE 103 BY VOLUME TO 4745 MILLION CASES FROM 4603 MILLION CASES 9307280036 930728 BUSINESS BRIEF UNIONFED FINANCIAL CORP SHAREHOLDERS PASS MEASURES RELATED TO RECAPITALIZATION UNIONFED FINANCIAL CORP SHAREHOLDERS APPROVED FOUR PROPOSALS RELATED TO A RECAPITALIZATION UNDERTAKEN TO WARD OFF SEIZURE BY FEDERAL REGULATORS THE FIRST OF THE MEASURES APPROVED BY UNIONFED SHAREHOLDERS PROVIDES FOR THE ISSUANCE OF UP TO 425 MILLION SHARES OF COMMON STOCK THE SECOND TWO INVOLVE AMENDING THE CERTIFICATE OF INCORPORATION TO EFFECT A 1FOR10 REVERSE STOCK SPLIT AND TO INCREASE THE AUTHORIZED SHARES OF COMMON STOCK TO 60 MILLION FROM NINE MILLION SHARES THE FINAL PROVISION IS AN AMENDMENT OF A 1992 STOCK INCENTIVE PLAN TO INCREASE SHARES WHICH MAY BE ISSUED UNDER THE PLAN ON JUNE 3 THE OFFICE OF THRIFT SUPERVISION INFORMED THE COMPANY'S UNION SAVINGS BANK UNIT THAT IT HAD BEEN CLASSIFIED AS CRITICALLY UNDERCAPITALIZED THE REGULATORS GAVE UNIONFED 90 DAYS TO RESTRUCTURE ITS OPERATIONS OR FACE CLOSURE THE BREA CALIF BANK HOLDING COMPANY ANNOUNCED A LOSS OF 114 MILLION OR 153 A SHARE FOR THE FOURTH QUARTER OF THE FISCAL YEAR ENDED JUNE 30 COMPARED WITH A LOSS OF 48 MILLION OR 64 CENTS A SHARE FOR THE YEAREARLIER QUARTER 9307280035 930728 WORLD MARKETS LONDON STOCKS RALLY ON MOUNTING SPECULATION ABOUT GERMAN RATE CUTS TOKYO PRICES EDGE UP A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES JUMPED 12 YESTERDAY THE STRONGEST SHOWING IN MORE THAN THREE WEEKS AS HOPES FOR LOWER EUROPEAN INTEREST RATES CONTINUED TO OBSESS THE MARKET TOKYO STOCKS EDGED HIGHER IN SPARSE TRADING AS INVESTORS REMAINED LARGELY ON THE SIDELINES WAITING TO LEARN WHO WILL BE ABLE TO FORM JAPAN'S NEXT GOVERNMENT WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10710 UP 037 REFLECTING INCREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A DROP IN THE AMERICAS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16518 UP 589 OR 37 WITH CASINO MUNICIPAL DE CANNES OF FRANCE POSTING A 16 GAIN IN ITS LOCAL CURRENCY SOFTWARE STOCKS TRAILED AT 10686 DOWN 290 OR 26 WITH NOVELL OF THE US SLIDING 14 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX RALLIED 352 POINTS TO 28794 MARKING ITS FOURTH CONSECUTIVE RISE THE FT 30STOCK INDEX JUMPED 231 POINTS OR 1 TO 22773 VOLUME WAS 6625 MILLION SHARES COMPARED WITH 4836 MILLION SHARES A DAY EARLIER THE MOMENTUM THAT BEGAN MONDAY ON A BET THAT GERMANY WILL CUT INTEREST RATES PICKED UP SPEED AS LONDON INVESTORS SPECULATED THAT A BUNDESBANK REDUCTION WILL BE BIG WHEN THE CENTRAL BANK CONSIDERS MONETARY POLICY TOMORROW A SIZABLE CUT NOT ONLY WOULD HELP BRITISH COMPANIES BUT SPUR THE ECONOMY'S RECOVERY FROM RECESSION BY ALLOWING BRITAIN TO LOWER ITS BASE LENDING RATE BUT INVESTORS SAID THAT IF GERMANY BALKS AT CUTTING ITS RATES LONDON STOCKS' GAINS WILL DISAPPEAR QUICKLY MEANWHILE LONDON EQUITIES YESTERDAY ALSO GOT A BOOST FROM SEVERAL POSITIVE CORPORATE DEVELOPMENTS FAVORING SHAREHOLDERS IN FRANKFURT SHARE PRICES WEAKENED IN QUIET TRADING THE DAX 30STOCK INDEX DROPPED 929 POINTS TO 184523 FOLLOWING MONDAY'S 24POINT GAIN ON ANTICIPATION OF LOWER INTEREST RATES ON THE CONTINENT LED BY GERMANY HOPES COOLED A BIT FOR RATE REDUCTIONS AS THESE HAVE BEEN FACTORED INTO SHARE PRICES THE MARKET IGNORED PRELIMINARY DATA ON WESTERN GERMANY'S CONSUMER PRICE INDEX WHICH WERE RELEASED MINUTES BEFORE TRADING ENDED AND WHICH WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS IN AMSTERDAM THE MARKET ROSE THOUGH SOME BLUE CHIPS FELL ON PROFITTAKING AMID THIN HOLIDAY TRADING AND MANY GAINERS ENDED BELOW THEIR INTRADAY HIGHS AS INVESTORS WERE DISAPPOINTED WHEN WALL STREET OPENED FLAT MILAN SHARES LOGGED STRONG GAINS ENDING A STRING OF FOUR CONSECUTIVE LOSSES BUYING FOCUSED ON BLUE CHIPS AND TELECOMMUNICATIONS ISSUES THOUGH DEALINGS WERE LIGHT IN MADRID AFTER A LACKLUSTER SESSION A LATE BURST OF FUTURESLED BUYING PUSHED STOCK PRICES HIGHER IN STOCKHOLM AFTER THE PREVIOUS DAY'S RALLY EQUITIES WERE PUSHED DOWN IN EARLY PROFITTAKING BUT RECOVERED IN LATEAFTERNOON TRADING TO END WITH SMALL GAINS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 8751 POINTS MONDAY ADDED 6931 TO 1989139 ON WEDNESDAY THE NIKKEI ROSE 1150 POINTS TO CLOSE THE MORNING SESSION AT 1990289 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 190 MILLION SHARES UP FROM 1772 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 565339 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 622 POINTS MONDAY ADVANCED 990 TO 162545 THOUGH THE NIKKEI APPROACHED 20000 DURING THE SESSION THIS DIDN'T SPARK MUCH ENTHUSIASM AMID CONTINUING UNCERTAINTIES ABOUT WHETHER THE LIBERAL DEMOCRATIC PARTY WILL BE DISLODGED IN THE NEW GOVERNMENT THE LOW TURNOVER ALSO STEMMED FROM THE SUMMER VACATION SEASON REPORTS THAT THE LDP WOULD TRY TO DELAY FOR A WEEK A PARLIAMENTARY SESSION AIMED AT FORMING THE NEXT GOVERNMENT LEFT MANY TRADERS WORRIED THAT THE MARKET'S TORPOR WILL BE PROLONGED INVESTORS ALSO WERE AWAITING THE LDP'S FRIDAY MEETING TO CHOOSE A NEW LEADER AS A CANDIDATE TO SUCCEED PRIME MINISTER KIICHI MIYAZAWA WEAK ECONOMIC DATA CONTINUED TO ADD TO JAPAN'S POLITICAL WOES RETAIL SALES IN JUNE FELL 48 FROM A YEAR EARLIER BANKING ISSUES ADVANCED IN RELATIVELY HEAVY TRADING BUOYED BY HOPES FOR A CUT IN JAPANESE INTEREST RATES AS WELL AS BY EXPECTATIONS THAT A NEW WEIGHTED NIKKEI FUTURES INDEX WITH A STRONG LINEUP OF BANK SHARES WILL BE INTRODUCED SOON SOME LOWPRICED LARGECAPITALIZATION SHARES ALSO ADVANCED AHEAD OF THE LAUNCHING THURSDAY AND FRIDAY OF NEW INVESTMENT TRUSTS WHICH ARE LIKELY TO TARGET THOSE COMPANIES IN SYDNEY STOCKS RALLIED 11 SUPPORTED BY A JUMP IN THE PRICE OF GOLD AND STRONG BUYING BY OVERSEAS INVESTORS AN EXPECTED CUT IN AUSTRALIAN INTEREST RATES THIS WEEK BEGAN TO ATTRACT SMALLER INVESTORS TO THE MARKET SINGAPORE EQUITIES DECLINED LED BY SOME SELLING OF BLUE CHIPS IN HONG KONG PROFITTAKING HALTED STOCKS' ADVANCE AND PRICES FINISHED WITH SMALL GAINS TAIPEI SHARES FELL ON NEWS THAT SOME BANKS WEREN'T LIKELY TO CUT THEIR PRIME RATES IN THE SHORT TERM SPURRING LIGHT PROFITTAKING SEOUL PRICES GAINED AS RALLIES AMONG SHARES WITH LOW PRICE/EARNINGS RATIOS CONTINUED MANILA STOCKS SURGED 2 LED BY STRONG BUYING INTEREST IN THE TELECOMMUNICATIONS SECTOR WELLINGTON STOCKS CLIMBED SHARPLY AS A RESULT OF AN INTERESTRATE EASING MARKING THE HIGHEST FINISH FOR THIS YEAR AMONG CORPORATE DEVELOPMENTS IN LONDON REUTERS HOLDINGS EDGED UP 4 PENCE TO 1444 2167 THE FINANCIAL INFORMATION COMPANY'S FIRSTHALF PRETAX PROFIT ROSE 15 TO 2147 MILLION 3223 MILLION FROM A YEAR EARLIER IN LINE WITH MARKET EXPECTATIONS THE 17 INCREASE IN THE INTERIM DIVIDEND TO 62 PENCE A SHARE WAS AT THE LOWER END OF PREVIOUS FORECASTS IN FRANKFURT BAYERISCHE MOTOREN WERKE SANK 650 MARKS OR 11 TO 562 MARKS 32590 THE AUTO MAKER'S PROFIT PLUNGED 39 TO 255 MILLION MARKS 1479 MILLION A STEEPER DECLINE THAN ANALYSTS HAD EXPECTED IN PARIS EUROTUNNEL SOARED 23 FRENCH FRANCS OR 63 TO 386 FRANCS 655 AND IN LONDON JUMPED 27 PENCE OR 66 TO 434 PENCE 651 THE ENGLISH CHANNEL TUNNEL OPERATOR AND ITS CONTRACTING CONSORTIUM TRANS MANCHE LINK REACHED AN AGREEMENT THAT WILL ALLOW THEM TO COMPLETE WORK ON THE TUNNEL THE TWO COMPANIES HAVE BEEN INVOLVED IN COURT DISPUTES ABOUT COST OVERRUNS 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 9307280034 930728 COMMODITIES WHEAT FUTURES RISE ON FEARS OF RAIN DAMAGE TO WINTER AND SPRING CROPS CHINESE BUYING BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHEAT FUTURES PRICES ROSE ON WORSENING FEARS ABOUT RAINRELATED DAMAGE TO BOTH THE WINTER AND SPRING WHEAT CROPS AND CHINESE BUYING OF US WHEAT AT THE CHICAGO BOARD OF TRADE WHEAT FUTURES PRICES OPENED STRONG ON VARIOUS CONCERNS ABOUT THE QUALITY OF THE CROP WHEAT FOR DECEMBER DELIVERY SETTLED AT 330 A BUSHEL UP 35 CENTS ONE OF THE FACTORS SUPPORTING THE PRICES WAS THE PREMIUM OF THE PRICE OF HIGHPROTEIN WHEAT CONTRACTS TRADED AT THE MINNEAPOLIS GRAIN EXCHANGE OVER CHICAGO CONTRACTS AT THE MINNEAPOLIS EXCHANGE WHEAT MUST BE OF A HIGHER PROTEIN CONTENT TO BE DELIVERED AGAINST FUTURES CONTRACTS THE CURRENTLY HIGHER PRICE OF THE MINNEAPOLIS CONTRACTS IS BEING INTERPRETED AS AN INDICATION THAT HIGHQUALITY WHEAT COULD BE IN SCARCE SUPPLY THIS YEAR A YEAR IN WHICH FOREIGN DEMAND FOR US WHEAT IS EXPECTED TO BE STRONG WHEN THE HIGHPROTEIN HIGHGRADE WHEAT GETS IN SHORT SUPPLY THE PROTEIN PREMIUM IN MINNEAPOLIS JUST SKYROCKETS SAID RICHARD FELTES VICE PRESIDENT OF RESEARCH AT REFCO INC THAT SETS A STRONG TONE AT THE BOARD OF TRADE THE BIGGEST PROBLEM AREAS FOR US WHEAT FARMERS ARE IN NEBRASKA AND TO A LESSER EXTENT KANSAS STATES WHERE MUCH OF THE NATION'S WINTER WHEAT CROP IS GROWN THESE AREAS HAVE BEEN DELUGED BY RAIN MANY RIPE CROPS THAT ARE READY TO BE HARVESTED ARE STANDING UNDER WATER WINTER WHEAT CUTTINGS ARE ESTIMATED AT 28 IN NEBRASKA FOR INSTANCE VERSUS AN AVERAGE OF 90 AT THIS TIME OF YEAR NOR IS THE SPRING WHEAT CROP WHICH IS GROWN LARGELY IN THE DAKOTAS MINNESOTA AND OTHER NORTHERN PLAINS AND MIDWEST AREAS DOING AS WELL AS IT SHOULD BE ANALYSTS SAID RECENT RAINS IN THOSE AREAS ARE RAISING QUESTIONS ABOUT THE QUALITY AND QUANTITY OF THE CROP ALTHOUGH THE SITUATION ISN'T NEARLY AS BAD AS IN NEBRASKA ADDING TO THE UPWARD PRICE PRESSURE IN THE CBOT'S GRAIN PITS WAS NEWS THAT CHINA HAD ORDERED 800000 METRIC TONS OF US WHEAT THE FIRST SUCH PURCHASE BY THE TRADITIONALLY BIG WHEAT IMPORTER THIS YEAR MORE CHINESE PURCHASES ARE EXPECTED IN THE FALL IN CORN FUTURES TRADING PRICES ROSE ON THE BOARD OF TRADE IN PART BECAUSE OF GLOOMY US AGRICULTURE DEPARTMENT PROJECTIONS AND DECLARATIONS BY IOWA FARMING OFFICIALS THAT THE FLOODRELATED DAMAGE IS THE WORST FARMING DISASTER IN THE STATE'S HISTORY CORN FOR DECEMBER DELIVERY WAS UP 175 CENTS TO 250 A BUSHEL A USDA CROPCONDITION REPORT RELEASED MONDAY SUGGESTED THAT THE CONDITION OF THE IOWA CORN CROP COULD BE WORSENING LAST WEEK 56 OF THE CROP WAS RATED IN FAIR CONDITION AND 26 WAS RATED POOR THIS WEEK THE FAIR RATING FELL TO 51 AND THE POOR RATING ROSE TO 32 IN THE STATE IN THE CBOT'S SOYBEAN FUTURES PIT MEANWHILE PRICES CONTINUED TO FALL THE NOVEMBER CONTRACT PRICE WAS DOWN 675 CENTS TO 702 A BUSHEL YESTERDAY AFTER PLUNGING SHARPLY ON MONDAY THIS REFLECTS GROWING PERCEPTIONS AMONG TRADERS AND ANALYSTS THAT DESPITE THE WOES OF SOYBEAN FARMERS IN IOWA AND OTHER WESTERN CORN BELT STATES DECENT WEATHER FROM NOW UNTIL FALL COULD STILL PRODUCE A GOOD SOYBEAN CROP ON A NATIONAL BASIS SOYBEANS HAVEN'T REACHED THE YIELDSENSITIVE GROWING PERIOD SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO TRADITIONALLY THAT HAPPENS IN AUGUST AND THE SOYBEANS COULD BENEFIT IMMENSELY FROM HEAT AND DRIER WEATHER DURING THAT PERIOD IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES CLIMBED AGAIN HELPED ALONG BY A TECHNICAL RALLY AND THE LACK OF ANY NEGATIVE NEWS CRUDE OIL FOR SEPTEMBER DELIVERY ROSE 35 CENTS TO SETTLE AT 1842 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE DESPITE THE GAINS TRADING ACTIVITY WAS LIGHT SOME BROKERS WERE CAUTIOUS IN ADVANCE OF THE LATEST INDUSTRY REPORT ON US OIL INVENTORIES RELEASED BY THE AMERICAN PETROLEUM INSTITUTE YESTERDAY AFTER FUTURES TRADING CLOSED THERE WAS CONCERN THAT THERE WOULD BE A RENEWAL OF DOWNWARD PRESSURES ON PRICES IF THE REPORT SHOWED ANOTHER BIG INCREASE IN US CRUDE OIL INVENTORIES THE API REPORT APPEARED TO BE BULLISH HOWEVER IT SHOWED DECLINES OF 63 MILLION AND TWO MILLION BARRELS RESPECTIVELY IN INVENTORIES OF CRUDE OIL AND GASOLINE LAST WEEK COPPER FUTURES PRICES ROSE ON TECHNICAL STRENGTH COMING FROM THE METALS MARKET IN LONDON AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR SEPTEMBER DELIVERY WAS UP 13 CENTS TO 869 CENTS A POUND SPREAD POSITIONING IN THE LONDON METALS EXCHANGE'S OPTIONS PITS SET A FIRM TONE FOR THE NEW YORK TRADING DAY DESPITE THE CONTINUING ABSENCE OF LONGHERALDED COPPER BUYING BY ASIAN COUNTRIES LOOKING AT THE OVERALL BACKGROUND FOR MARKET AND CURRENT LEVELS OF PHYSICAL DEMAND THERE'S REALLY NOT VERY MUCH OF A BULLISH CASE TO BE MADE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE DRIVING FORCE FOR THE MODEST STRENGTH WE'RE SEEING IS A TECHNICAL TIGHTNESS IN LONDON LATER IN THE YEAR MR O'NEILL SAID ASIAN BUYERS SUCH AS CHINA SHOULD BEGIN TO PURCHASE US COPPER LAYING A FOUNDATION FOR ADDITIONAL PRICE GAINS AT THAT TIME 9307280033 930728 INTERNATIONAL BRIEF REUTERS HOLDINGS PLC PRETAX NET ROSE 15 SALES 20 IN THE 1993 FIRST HALF BRITISH INFORMATION GROUP REUTERS HOLDINGS PLC REPORTED THAT ITS PRETAX PROFIT ROSE 15 IN THE FIRST HALF OF 1993 AND SAID IT WAS LOOKING AHEAD TO DOUBLEDIGIT SALES GROWTH FOR THE REMAINDER OF THE YEAR HELPED BY THE POUND'S WEAKNESS AGAINST OTHER CURRENCIES PRETAX EARNINGS ROSE TO 2147 MILLION 3223 MILLION FROM 1874 MILLION WHILE SALES INCREASED 20 TO 8958 MILLION FROM 7484 MILLION THE INTERIM DIVIDEND WAS BOOSTED TO 62 PENCE A SHARE FROM 53 PENCE REUTERS SAID BUSINESS IN NORTH AMERICA REMAINS STRONG FOR THE GROUP WHILE THE UK HAS SHOWN MARKED IMPROVEMENT AND WESTERN EUROPE OFFERS A MIXED BUT SOMEWHAT IMPROVED PICTURE ASIAN MARKETS ARE GENERALLY FAVORABLE WITH SPECIAL BUOYANCY IN CHINA OPERATING COSTS WERE UP 20 THE BIGGEST RISE IN EXPENSES WAS FOR ROYALTIES EXCHANGE FEES AND DATA PACTS WITH THIRD PARTIES 9307280032 930728 BUSINESS BRIEF NATIONSBANK CORP BANK URBAN LEAGUE AGREE TO LOANREVIEW SYSTEM NATIONSBANK CORP SAID IT REACHED AN AGREEMENT WITH THE NATIONAL URBAN LEAGUE TO ESTABLISH A LOANREVIEW PROCESS FOR INDIVIDUALS WHOSE REQUESTS FOR MORTGAGES OR HOMEIMPROVEMENT LOANS ARE DENIED THE AGREEMENT CALLS FOR LOANREVIEW BOARDS TO BE SET UP IN 18 CITIES PRIMARILY IN THE SOUTHEAST AND TEXAS SERVED BY BOTH NATIONSBANK BASED IN CHARLOTTE NC AND THE URBAN LEAGUE THE BOARDS WHICH WILL BE NAMED AND MANAGED BY LOCAL AFFILIATES OF THE LEAGUE WILL HEAR APPEALS OF APPLICANTS WHOSE REQUESTS FOR LOANS HAVE BEEN REJECTED IF A BOARD DISAGREES WITH THE BANK'S DECISION TO DENY A LOAN THE ORIGINAL REQUEST WOULD BE RESUBMITTED TO THE BANK THE URBAN LEAGUE BASED IN NEW YORK FOCUSES ON INNERCITY ECONOMIC DEVELOPMENT AND SOCIAL ISSUES ITS PRESIDENT JOHN E JACOB CALLED THE OPPORTUNITY FOR A SECOND LOOK AT LOAN APPLICATIONS A WAY TO ADDRESS THE MORTGAGE CONCERNS OF INDIVIDUALS WHO MAY NEVER PURSUE HOME OWNERSHIP 9307280031 930728 WHO'S NEWS FIRST ALBANY FIRES FERBER AFTER STATE ALLEGATIONS ALBANY NY FIRST ALBANY COS SAID IT FIRED MARK S FERBER A VICE CHAIRMAN AND CHIEF OF ITS BOSTON OFFICE FOLLOWING ALLEGATIONS OF CONFLICT OF INTEREST IN HIS MUNICIPAL BOND UNDERWRITING AND ADVISORY WORK THE REGIONAL BROKERAGE COMPANY ACTED A WEEK AFTER THE MASSACHUSETTS WATER RESOURCES AUTHORITY DISMISSED MR FERBER AND FIRST ALBANY AS ADVISERS AND MERRILL LYNCH & CO AND LAZARD FRERES & CO AS UNDERWRITERS THE WATER AGENCY FOUND THAT MR FERBER WAS PAID AN UNDISCLOSED 28 MILLION BY MERRILL ONE OF THE AGENCY'S LEAD UNDERWRITERS WHILE MR FERBER THEN WORKING FOR LAZARD FRERES WAS ADVISING THE AGENCY ON MUNICIPAL FINANCING MR FERBER CONTINUED TO SERVE AS THE AGENCY'S ADVISER WHEN HE MOVED TO FIRST ALBANY IN FEBRUARY ALSO LAST WEEK MASSACHUSETTS BARRED MERRILL AND LAZARD FROM A 500 MILLION ROUND OF REFUNDING UNTIL THEY EXPLAINED WHY THEIR RELATIONSHIP WASN'T DISCLOSED FIRST ALBANY WAS ALSO BARRED THE FIRMS HAVE SAID THEY ARE COOPERATING WITH THE STATE AND HAVEN'T VIOLATED ANY LAW MR FERBER COULDN'T BE REACHED TO COMMENT FIRST ALBANY SHARES ROSE 875 CENTS TO 775 IN COMPOSITE OVERTHECOUNTER TRADING THE STOCK HAS FALLEN FROM A RECENT HIGH OF 9 ON JULY 16 9307280030 930728 BUSINESS BRIEF CYPRESS SEMICONDUCTOR CORP COURT UPHOLDS JURY VERDICT ON TEXAS INSTRUMENTS PATENT CYPRESS SEMICONDUCTOR CORP SAID A FEDERAL APPELLATE COURT UPHELD A LOWER COURT'S VERDICT FAVORING CYPRESS IN ITS LONGRUNNING PATENT FIGHT WITH TEXAS INSTRUMENTS INC CYPRESS BASED IN SAN JOSE CALIF SAID THE APPELLATE COURT DALLAS UPHELD A JURY'S FINDING THAT TEXAS INSTRUMENTS HADN'T INVENTED A TECHNIQUE FOR LOADING DATA ONTO CERTAIN KINDS OF MEMORY CHIPS AND THAT CYPRESS'S OWN MEMORY CHIPS DIDN'T INFRINGE ON ANY TEXAS INSTRUMENTS PATENTS TJ RODGERS CYPRESS'S PRESIDENT AND CHIEF EXECUTIVE HAILED THE RULING THE TEXAS INSTRUMENTS PATENT HAS CLEARLY BEEN FOUND WORTHLESS AND WE CAN PROCEED TO CONCENTRATE ON THE BUSINESS WE DO BEST BUILDING HIGHPERFORMANCE INTEGRATED CIRCUITS RATHER THAN SPENDING HOURS AND THOUSANDS OF DOLLARS IN COURT DEFENDING OURSELVES HE SAID OFFICIALS OF TEXAS INSTRUMENTS WHICH IS BASED IN DALLAS AND ALSO MAKES CHIPS CIRCUITS AND ELECTRONIC EQUIPMENT COULDN'T BE REACHED FOR COMMENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TEXAS INSTRUMENTS CLOSED AT 7325 DOWN 2 CYPRESS CLOSED AT 14625 DOWN 50 CENTS 9307280029 930728 INTERNATIONAL BRIEF PHILIPS ELECTRONICS NV CARLYLE GROUP TO ACQUIRE MAGNAVOX ELECTRONIC UNIT DUTCH CONSUMER ELECTRONICS GIANT PHILIPS ELECTRONICS NV COMPLETING A RETREAT FROM THE DEFENSE BUSINESS AGREED TO SELL ITS US DEFENSEELECTRONICS UNIT TO CARLYLE GROUP A WASHINGTONBASED MERCHANT BANKING FIRM TERMS WEREN'T DISCLOSED BUT ANALYSTS IN LONDON SPECULATED THAT THE PRICE WAS CONSIDERABLY LESS THAN THE UNIT'S ANNUAL SALES OF MORE THAN 400 MILLION PHILIPS HAD BEEN TRYING FOR MORE THAN A YEAR TO FIND A BUYER FOR THE MAGNAVOX ELECTRONIC SYSTEMS CO UNIT THE DEAL IS THE LATEST IN A RAPID SERIES OF BUYOUTS AND INVESTMENTS ARRANGED IN THE PAST FEW YEARS BY CARLYLE A POLITICALLY WELLCONNECTED FIRM FORMER US DEFENSE SECRETARY FRANK CARLUCCI IS ITS CHAIRMAN WHILE FORMER WHITE HOUSE BUDGET DIRECTOR RICHARD DARMAN IS A MANAGING DIRECTOR AND FORMER SECRETARY OF STATE JAMES BAKER IS A PARTNER PHILIPS BOUGHT MAGNAVOX ELECTRONIC FORT WAYNE IND IN 1974 EVENTUALLY SEPARATING ITS DEFENSE AND CONSUMERELECTRONICS ARMS IT RETAINS THE CONSUMER OPERATIONS THE DEFENSE UNIT BEING SOLD HAS 4000 EMPLOYEES AND MAKES MILITARY RADIOS INFRARED RIFLE SCOPES SHIPNAVIGATION EQUIPMENT AND ANTISUBMARINE WARFARE DEVICES 9307280028 930728 INSURER AD SNIPES AT RIVALS IN A PLEA TO HELP CHILDREN WASHINGTON THE ADVERTISEMENT WAS ARRESTING UNDER A PHOTO OF EXECUTIVES OF MUTUAL LIFE INSURANCE COMPANIES IT SAID THEY GET A 1200000000 TAX LOOPHOLE UNDER A PHOTO OF A DOZEN CHILDREN IT SAID THEY DON'T GET ENOUGH TO EAT CLOSING THE LOOPHOLE THE AD SAID COULD MEAN MORE MONEY FOR HEAD START MEALS AT DAYCARE CENTERS AND IMMUNIZATION WHAT THE AD DIDN'T MENTION WAS THAT IT WAS LARGELY PAID FOR BY A STOCKHOLDEROWNED LIFE INSURER TRANSAMERICA LIFE INSURANCE COS STOCKHOLDEROWNED AND MUTUAL OR POLICYHOLDEROWNED LIFE INSURERS HAVE BEEN FEUDING FOR YEARS OVER THE WAY THEY ARE TAXED THE AD SAID IT WAS SPONSORED BY THE COALITION TO CLOSE THE LOOPHOLE AND PUT OUR KIDS FIRST A NEWLY FORMED GROUP LED BY THE COMMUNITY NUTRITION INSTITUTE A 24YEAROLD WASHINGTON NONPROFIT ORGANIZATION IF WE'RE BEING USED IT'S FOR A GOOD CAUSE SAID RODNEY LEONARD EXECUTIVE DIRECTOR OF THE INSTITUTE JAMES W DEDERER EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF THE TRANSAMERICA CORP UNIT CONFIRMED THAT THE COMPANY HELPED TO PAY FOR THE AD WHICH RAN IN YESTERDAY'S WASHINGTON POST WASHINGTON TIMES AND BALTIMORE SUN 9307280027 930728 FOREIGN EXCHANGE VACILLATION PERVADES CURRENCY MARKETS PRIOR TO BUNDESBANK DECISION ON POLICY BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK WORLD CURRENCY MARKETS CONTINUED TO VACILLATE TUESDAY AS PLAYERS JUGGLED HOLDINGS IN ANTICIPATION OF THE NEXT CLUE TO GERMAN MONETARY POLICY EXPECTED TO COME FROM THURSDAY'S MEETING OF THE BUNDESBANK PUSHED BY TRADING IN OTHER CURRENCIES THE DOLLAR ENDED HIGHER AGAINST MOST EUROPEAN CURRENCIES BUT LOST GROUND TO THE YEN IN ACTION VERY SIMILAR TO MONDAY'S LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17278 MARKS UP FROM 17245 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10608 YEN OFF FROM 10670 YEN STERLING WAS TRADING AT 14887 DOWN FROM 15020 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10618 YEN AND AT 17270 MARKS WITH THE BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL WIDELY EXPECTED TO LOWER INTEREST RATES AT ITS MEETING THURSDAY TRADERS SAID BOTH THE DOLLAR AND THE YEN ARE INCREASINGLY ATTRACTIVE TUESDAY THE DEMAND FOR YEN COMBINED WITH THE MARK'S MALAISE TO PUSH THE JAPANESE CURRENCY TO AN HISTORIC HIGH AGAINST ITS GERMAN COUNTERPART LATE TUESDAY IN NEW YORK THE MARK WAS QUOTED AT 6141 YEN OFF FROM 6183 YEN MONDAY TUESDAY'S LOW WAS 6139 YEN BELOW THE PREVIOUS RECORD OF 6146 YEN SET JULY 22 BUT THE MARK'S WEAKNESS WASN'T UNIFORM PRESSURE CONTINUED ON THE WEAKER MEMBERS OF THE EXCHANGE RATE MECHANISM OR ERM OF THE EUROPEAN MONETARY SYSTEM TRADERS SAID MARKET OPINION REMAINS DIVIDED ON WHETHER THURSDAY'S BUNDESBANK MEETING WILL YIELD ENOUGH OF A CUT IN GERMAN RATES TO FORESTALL FURTHER TURMOIL WITHIN THE SYSTEM UNDER ERM RULES MEMBERS ARE COMMITTED TO KEEPING THEIR CURRENCIES IN NARROW BANDS RELATIVE TO EACH OTHER AS A RESULT PERSISTENTLY HIGH GERMAN INTEREST RATES HAVE KEPT OTHER ERM MEMBERS FROM STOKING THEIR ECONOMIES WITH CHEAP MONEY FOR FEAR OF BREAKING WITH THE GRID CURRENTLY PARTICIPANTS SAID THE MARKET IS PREOCCUPIED WITH FORECASTING THE BUNDESBANK'S NEXT MOVE AND WITH LITTLE OTHER NEWS TO STIR ACTIVITY TUESDAY THIS UNCERTAINTY ABOUT THE BUNDESBANK'S INTENTIONS KEPT THE DOLLAR IN RELATIVELY NARROW TRADING RANGES THE MARKET'S PRICED IN A QUARTERPOINT CUT IN THE DISCOUNT RATE BUT IS REALLY LOOKING FOR A HALFPOINT SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN THE DISCOUNT RATE NOW IS AT 675 A CUT OF ONLY A QUARTER POINT WOULDN'T BE SUFFICIENT TO DEFUSE THE PRESSURE THAT'S BUILT UP IN THE ERM HOWEVER TRADERS SAID A DISAPPOINTMENT FROM THE BUNDESBANK COULD CAUSE A BREAKUP OF THE ENTIRE SYSTEM TRADERS SAID WITH INVESTORS FLOCKING TO THE MARK GIVEN THIS CONCERN SOME PARTICIPANTS SEE THE BUNDESBANK CHOPPING AS MUCH AS A FULL PERCENTAGE POINT FROM THE DISCOUNT RATE THURSDAY SUCH A REDUCTION PROBABLY WOULD STABILIZE THE ERM AND SEND THE MARK INTO A TAILSPIN PARTICIPANTS SAID 9307280026 930728 INTERNATIONAL BRIEF SEMBAWANG SHIPYARD LTD COMPANY'S PROFIT FOR HALF FALLS MORE THAN EXPECTED SEMBAWANG SHIPYARD LTD OF SINGAPORE SAID NET INCOME FELL 15 IN THE FIRST HALF A STEEPER DROP THAN MANY ANALYSTS FORECAST SEMBAWANG SAID IT HAD NET INCOME OF 466 MILLION SINGAPORE DOLLARS 288 MILLION COMPARED WITH S548 MILLION A YEAR EARLIER REVENUE SLIPPED 54 TO S3538 MILLION FROM S3739 MILLION THE SHIPYARD COMPANY BLAMED THE PROFIT DECLINE ON COMPETITION AND LOWER REVENUE AND MARGINS IN ITS SHIP REPAIR BUSINESS WHICH ACCOUNTS FOR A BIT MORE THAN HALF OF THE COMPANY'S REVENUE COMPANY OFFICIALS SAID RESULTS WERE ALSO HURT BY FOUR STARTUP VENTURES WHICH PRODUCED COMBINED LOSSES OF S58 MILLION IN THE HALF THE SHIPYARD COMPANY ANNOUNCED RESULTS AFTER THE MARKET CLOSED AND ANALYSTS EXPECT THE MARKET TO BE HIT WEDNESDAY WITH THE NEWS THE COMPANY IS THE FIRST OF SINGAPORE'S BLUECHIP COMPANIES TO REPORT FIRSTHALF RESULTS AND IT MAY SIGNAL A ROCKIER EARNINGS SEASON THAN THE STOCK MARKET EXPECTED 9307280025 930728 INSIDE TRACK DELL DIRECTORS GIVE VOTE OF CONFIDENCE TO BATTERED STOCK BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL THE BATTERED STOCK OF DELL COMPUTER CORP HOVERING NEAR ITS 52WEEK LOW ISN'T BEING COMPLETELY SNUBBED BOBBY R INMAN AND TWO OTHER DIRECTORS OF THE AUSTIN TEXAS PERSONALCOMPUTER MAKER HAVE BEEN BUYING DELL SHARES DESPITE SEVERE PRICECUTTING WITHIN THE INDUSTRY AND RECENT TURMOIL AT THE COMPANY SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW MR INMAN AN INFLUENTIAL DELL DIRECTOR AND FORMER DEPUTY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY PURCHASED A TOTAL OF 25000 SHARES IN LATE JUNE AT AN AVERAGE PRICE OF 1987 A SHARE SEC DATA INDICATE MR INMAN'S INVESTMENT OF NEARLY 500000 HIS FIRST OPENMARKET PURCHASE OF DELL STOCK SINCE JOINING THE BOARD IN 1987 INCREASES HIS HOLDING IN THE FIRM BY 22 TO 137500 SHARES I GOT A SUPERB BUY FROM PURCHASING THE STOCK UNDER 20 MR INMAN SAID IN A PHONE INTERVIEW FROM COLORADO WHERE HE'S VACATIONING I CONSIDER IT RIGHT NOW TO BE A GOOD 30 STOCK DELL'S STOCK WAS AT 1775 A SHARE DOWN 50 CENTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MR INMAN SAID HE PLANS TO HOLD THE 25000 SHARE BLOCK UNTIL DELL'S SHARES FETCH 40 AND THEN INVEST THE PROCEEDS BACK INTO MY INVESTMENT POOL AT THE BEGINNING OF THE YEAR DELL'S STOCK WAS TRADING JUST BELOW 50 A SHARE BUT A SERIES OF PROBLEMS AT THE COMPANY INCLUDING TROUBLES WITH ITS LINE OF NOTEBOOK COMPUTERS SUBSEQUENTLY ERODED INVESTOR CONFIDENCE IN THE COMPUTER HIGHFLIER DELL MR INMAN SAID HAD SUCCUMBED TO INTERNAL EXPECTATIONS OF HYPERGROWTH WHICH HAVE BEEN QUICKLY DASHED THE COMPANY BUOYED BY SALES OF ITS DESKTOP COMPUTERS WAS ALWAYS EXPECTING TO GROW AT A BLISTERING PACE SUCH THAT WHEN IT DIDN'T EXPAND AT THAT RATE THE IMPACT WAS MUCH MORE SEVERE THE REASON IT COULDN'T GO ON AT THAT RATE WAS THE FAILURE IN THE PORTABLE NOTEBOOK AREA ACKNOWLEDGING THAT DELL IS STILL HAVING A ROUGH YEAR MR INMAN WHO CHAIRS THE BOARD'S AUDIT COMMITTEE SAID THE NATION'S FOURTHLARGEST COMPUTER MAKER SHOULD EXPERIENCE A TURNAROUND BEGINNING IN THE FOURTH QUARTER YOU DON'T GET OUT OF THESE PROBLEMS OVERNIGHT HE CAUTIONED I DON'T WANT TO LEAVE THE IMPRESSION WITH PROSPECTIVE INVESTORS THAT THEY WOULD DOUBLE THEIR MONEY IN 60 DAYS BY SNAPPING UP DELL SHARES AT CURRENT LEVELS WHICH ARE NEAR HE 52WEEK LOW OF 14625 BUT AS IS OBVIOUS FROM MY OWN INVESTMENT I'M VERY OPTIMISTIC ABOUT THE COMPANY'S PERFORMANCE OVER THE LONGER TERM THAT CONFIDENCE IS IN PART BASED ON THE ADDITIONAL TALENT THAT'S BEEN ADDED TO MANAGEMENT HE SAID REFERRING TO THE HIRING OF A NEW TEAM ASSIGNED TO OVERSEE PRODUCT DEVELOPMENT AND MANUFACTURING AT DELL THE KEY IS NEW PRODUCTS AND GETTING BETTER CONTROL OF THEIR INFORMATION SAID ANDREW J NEFF AN ANALYST WITH BEAR STEARNS & CO IT'S A VERY TOUGH ENVIRONMENT GENERALLY WITH A PARTICULARLY CHALLENGING ENVIRONMENT IN EUROPE A PRICE WAR IN JAPAN AND THE PROSPECT FOR AN ACCELERATION OF THE PRICE WAR IN THE US BUT MR NEFF SAID DELL HAS IT WITHIN ITSELF TO TURN ITSELF AROUND THE COMPANY HAS A VERY STRONG BRAND IMAGE AND STRONG MARKETING WHICH IS WHAT YOU NEED TO PULL IT OUT JOINING MR INMAN IN ACCUMULATING DELL SHARES WERE TWO OTHER BOARD MEMBERS MICHAEL H JORDAN WHO BECAME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WESTINGHOUSE ELECTRIC CORP ON JUNE 30 PICKED UP 2000 DELL SHARES IN LATE MAY AT 2450 AND PAUL O HIRSCHBIEL BOUGHT 500 SHARES IN MIDJUNE AT 1938 NEITHER DIRECTOR COULD BE REACHED FOR COMMENT NOT ALL THE INSIDE ACTION AT DELL HAS BEEN ON THE BUY SIDE HOWEVER ITS CHIEF TECHNOLOGY OFFICER G GLENN HENRY TRIMMED HIS STAKE BY 16 THROUGH THE DISPOSAL OF 2000 SHARES IN LATE JUNE AT 20 A SHARE SEC DATA SHOW THAT HE CONTINUES TO HOLD MORE THAN 10000 SHARES AND HAS OPTIONS THAT ARE EXERCISABLE FOR THE PURCHASE OF 11500 ADDITIONAL SHARES THROUGH A DELL SPOKESWOMAN MR HENRY SAID THE SALES WERE FOR PERSONAL REASONS ONLY NAMELY TO HELP FINANCE HIS SON'S COLLEGE EDUCATION MR HENRY HAD BEEN IN CHARGE OF OVERALL PRODUCT DEVELOPMENT AT DELL BEFORE RECENTLY BEING REASSIGNED TO HIS CURRENT LESSER POST FOR THE THREE DIRECTORS WHO SNAPPED UP DELL SHARES THEIR PURCHASES DO NOT SEEM ALL THAT PRESCIENT IN THE SHORT TERM THEY CAME JUST WEEKS BEFORE AN ANNOUNCEMENT EARLIER THIS MONTH THAT SENT DELL'S STOCK REELING BUFFETED BY INTERNAL CONTROL PROBLEMS AND A SLOWDOWN IN EUROPE DELL SAID ON JULY 14 THAT IT EXPECTED TO REPORT A LOSS FOR ITS SECOND QUARTER ENDING AUG 1 ITS FIRSTEVER QUARTERLY LOSS THAT NEWS SENT DELL STOCK SHARPLY LOWER PLUNGING 30 ON THE DAY IN OTC TRADING TO 15875 THE COMPANY SAID AT THE TIME THAT THE EXPECTED LOSS WOULD COME IN AROUND 165 TO 185 A SHARE AND WOULD BE THE RESULT OF A 75 MILLION TO 85 MILLION CHARGE THAT CHARGE COVERS CONTINUING PROBLEMS IN THE COMPANY'S NOTEBOOKCOMPUTER BUSINESS AND THE COSTS OF FIXING AN INTERNAL FORECASTING SYSTEM THAT HAS CAUSED DELL TO OVERESTIMATE DEMAND PARTICULARLY IN EUROPE DELL ALSO SAID THE EXPECTED LOSS COULD FORCE IT INTO TECHNICAL DEFAULT ON SOME TERMS OF ITS 130 MILLION LINE OF REVOLVING CREDIT BUT MR INMAN SAID THE LINE WAS SECURE FOR NOW I DON'T EXPECT ANY PROBLEMS WITH THE LINE OF CREDIT IF WE WEREN'T HAVING THE BOOMING PERFORMANCE IN THE DESKTOP AND FILESERVER COMPUTER LINES IT COULD BE DIFFERENT MR INMAN WHO HAS INVESTED IN A NUMBER OF TECHNOLOGY STARTUP COMPANIES OVER THE YEARS SAID DELL WAS MAKING A POINT OF SHIFTING TOWARD CONSERVATIVE ACCOUNTING PRACTICES AND PERFORMANCE EXPECTATIONS HE SUGGESTED THAT THE COMPANY'S DECISION TO MOVE OFFSHORE ITS PRODUCTION OF NOTEBOOK COMPUTERS WAS A DISASTER THAT DID NOT NEED TO HAPPEN THE CHARGE FOR THE SECOND QUARTER IS A MOVE TO VERY CONSERVATIVE ACCOUNTING HE SAID ASKED IF THE MOVE REFLECTED SOME PERSONAL INTERVENTION ON HIS PART HE SAID THE CHAIRMAN OF THE AUDIT COMMITTEE PROBABLY HAS MORE IMPACT NOW AS TROUBLES HAVE DEVELOPED THAN EARLIER PEOPLE FAMILIAR WITH THE COMPANY SAID THAT MR INMAN WAS INVOLVED IN THE DEPARTURE OF THE FORMER CHIEF FINANCIAL OFFICER JAMES R DANIEL THE DELL DIRECTOR SAID THAT THE WAVE OF PRICECUTTING THAT HAS BEEN HAMMERING THE INDUSTRY IS NOT LIKELY TO INTENSIFY I DON'T SEE ANY IMPETUS FOR ANOTHER SURGE IN PRICECUTTING HE PREDICTED THAT INVESTORS' ATTENTION WILL TURN TO THE INTRODUCTION OF THE NEXT FAMILY OF PRODUCTS FROM COMPUTER HARDWARE COMPANIES SUCH AS DELL AND TO THE NEW TECHNOLOGY EMERGING FROM SEMICONDUCTOR FIRMS MR INMAN'S OPTIMISM ABOUT DELL'S PROSPECTS NOTWITHSTANDING MOST ANALYSTS NOW EXPECT PC SALES TO SLOW BY YEAR END BECAUSE OF SLACK CORPORATE SPENDING AND A LULL IN PRODUCT CYCLES DSC COMMUNICATIONS CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES L DONALD SOLD MORE THAN HALF OF THE STOCK HE OWNS IN THE COMPANY LAST WEEK FOR PERSONAL FINANCIAL REASONS DSC SAID THE 250000 SHARES THAT MR DONALD SOLD ON THURSDAY TWO DAYS AFTER THE PLANO TEXAS MAKER OF TELECOMMUNICATIONS EQUIPMENT REPORTED BETTERTHANEXPECTED EARNINGS WERE PART OF 422000 SHARES HE BOUGHT IN THE OPEN MARKET WHEN HE JOINED DSC IN 1981 A DSC SPOKESMAN SAID MR DONALD SINCE HAS ACQUIRED OPTIONS FOR 11 MILLION SHARES MEANING THAT THE SALE REPRESENTED 16 OF HIS CURRENT AND POTENTIAL HOLDINGS THIS WAS FOR HIS OWN FINANCIAL DIVERSITY THE SPOKESMAN SAID AT LAST THURSDAY'S CLOSING PRICE OF 51375 MR DONALD'S SALE WOULD HAVE BEEN WORTH ABOUT 128 MILLION DSC ALSO SAID WILLIAM R TEMPEST VICE PRESIDENT AND GENERAL COUNSEL SOLD 125000 SHARES WORTH ABOUT 64 MILLION 9307280024 930728 STATE DEPARTMENT DEFENDS CONTRACT WITH JAPAN FIRM WASHINGTON THE STATE DEPARTMENT DEFENDED ITS DECISION TO AWARD A CONTRACT TO RENOVATE THE US AMBASSADOR'S RESIDENCE IN TOKYO TO A JAPANESE CONSTRUCTION FIRM SAYING THE ACTION DEMONSTRATED THE US COMMITMENT TO FULL AND OPEN COMPETITION LAST WEEK THE STATE DEPARTMENT SELECTED OBAYASHI CORP OF JAPAN AFTER THE JAPANESE COMPANY BID ABOUT 30 LESS THAN TWO US COMPANIES TO DO THE WORK OBAYASHI BID 71 MILLION BUT FISCHBACH & MOORE INTERNATIONAL A UNIT OF AMERICAN INTERNATIONAL GROUP PROTESTED THE AWARD THE NEW YORK TIMES REPORTED THE COMPANY CITED A PROVISION OF US LAW THAT RESTRICTS BIDDING ON DIPLOMATIC PROJECTS BY COMPANIES FROM COUNTRIES THAT DON'T GIVE EQUAL ACCESS TO US BIDDERS ON SIMILAR PROJECTS IN APRIL THE US TRADE REPRESENTATIVE CITED JAPAN FOR ALLEGEDLY DISCRIMINATING AGAINST US COMPANIES IN PROCUREMENT OF CONSTRUCTION SERVICES THE US HAS PUT OFF ANY POSSIBLE SANCTIONS UNTIL NOVEMBER CITING JAPANESE WILLINGNESS TO NEGOTIATE OVER A US PROPOSAL TO OPEN THE JAPANESE CONSTRUCTION MARKET A STATE DEPARTMENT SPOKESWOMAN SAID THAT BECAUSE THE US HASN'T IMPOSED ANY SANCTIONS JAPAN ISN'T FORMALLY IN VIOLATION OF US TRADE LAW STEVEN POLAN GENERAL COUNSEL FOR THE AIG UNIT PROTESTING THE AWARD QUESTIONED WHETHER THE STATE DEPARTMENT HAD MADE AN EXPLICIT FINDING THAT JAPAN DOESN'T DISCRIMINATE AGAINST US CONTRACTORS AS CALLED FOR IN THE FOREIGN SERVICE BUILDINGS ACT 9307280023 930728 BOMBARDIER INC JET CRASHES DURING TEST KILLING CREW MEMBERS MONTREAL BOMBARDIER INC SAID ONE OF ITS PROTOTYPE REGIONAL JETS CRASHED DURING A TEST FLIGHT MONDAY KILLING ALL THREE CREW MEMBERS THE COMPANY SAID THE AIRCRAFT MANUFACTURED BY ITS CANADAIR AEROSPACE DIVISION CRASHED NEAR WICHITA KAN BUT DIDN'T PROVIDE DETAILS OF THE ACCIDENT A SPOKESMAN FOR CANADAIR SAID THE PLANE WAS BEING USED TO TEST NEW MODIFICATIONS AND DIFFERENT CONFIGURATIONS OF THE REGIONAL JET SINCE OCTOBER BOMBARDIER HAS SHIPPED 14 OF THE 50SEAT JETS TO THREE CUSTOMERS INCLUDING LUFTHANSA AG'S CITYLINE SUBSIDIARY IN GERMANY WEATHER DOESN'T APPEAR TO HAVE BEEN A FACTOR IN THE CRASH THE SPOKESMAN SAID HE ADDED THE COMPANY DOESN'T EXPECT TO COMMENT FURTHER UNTIL AN INVESTIGATION BY US AND CANADIAN OFFICIALS IS COMPLETED BOMBARDIER HAS ORDERS FOR 24 ADDITIONAL REGIONAL JETS OPTIONS FOR 36 AND LETTERS OF INTENT OR PROPOSALS FOR ANOTHER 69 JON REIDER AN ANALYST WITH RICHARDSON GREENSHIELDS IN MONTREAL SAID THE PROTOTYPE USED FOR THE TEST FLIGHTS BEARS LITTLE RESEMBLENCE TO THE COMMERCIAL AIRCRAFT BEING DELIVERED TO CUSTOMERS IN TORONTO STOCK EXCHANGE TRADING YESTERDAY BOMBARDIER'S CLASS B SHARES CLOSED AT C1175 US918 A SHARE OFF 125 CANADIAN CENTS BOMBARDIER IS AN AEROSPACE AND TRANSPORTATIONEQUIPMENT MANUFACTURER 9307280022 930728 BUSINESS BRIEF ALEX BROWN INC BROKERAGE CONCERN'S PROFIT ROSE 56 IN SECOND QUARTER ALEX BROWN INC SAID SECONDQUARTER EARNINGS ROSE 56 TO 15 MILLION OR 95 CENTS A SHARE REFLECTING STRONG GAINS ACROSS THE REGIONAL BROKERAGE FIRM'S BUSINESS LINES THE RESULTS COMPARED WITH NET INCOME OF 96 MILLION OR 60 CENTS A SHARE FOR THE YEAREARLIER PERIOD SECONDQUARTER REVENUE CLIMBED 32 TO 130 MILLION THE COMPANY SAID IT WOULD INCREASE ITS QUARTER DIVIDEND TO 15 CENTS A SHARE FROM 125 CENTS A SHARE PAYABLE AUG 17 TO STOCK OF RECORD AUG 6 THE BALTIMORE COMPANY BENEFITED FROM AN 83 JUMP IN SECURITIES TRADING INCREASED COMMISSIONS AND IMPROVED RESULTS FROM ITS ADVISORY AND INVESTMENT BANKING BUSINESSES INTEREST AND DIVIDEND REVENUE ROSE 25 MOSTLY REFLECTING AN INCREASE IN MARGIN LOANS 9307280021 930728 WHAT'S NEWS WORLDWIDE THE HOUSE APPROVED 3 BILLION FOR MIDWESTERN FLOOD RELIEF LAWMAKERS VOTED 40027 TO APPROVE THE EMERGENCY AID AFTER BLOCKING AN EFFORT BY SOME REPUBLICANS AND CONSERVATIVE DEMOCRATS TO CUT OTHER GOVERNMENT PROGRAMS TO COVER THE COST CLINTON SAID HE WOULD ASK FOR AN ADDITIONAL 11 BILLION IT COULD GET WORSE THE PRESIDENT TOLD GOVERNORS FROM SIX FLOODED STATES THE GOVERNORS AND CLINTON HELPED PRESSURE HOUSE MEMBERS TO PUT ASIDE PROCEDURAL ARGUMENTS THAT HAD DELAYED THE BILL FIVE DAYS AND ANGERED MANY MIDWEST RESIDENTS THE MEASURE WENT TO THE SENATE WHERE SPEEDY ACTION WAS EXPECTED THE MISSOURI AND KANSAS RIVERS CRESTED AT THEIR CONFLUENCE IN KANSAS CITY MO BUT THEY DID SO AT DIFFERENT TIMES GIVING THE CITY A REPRIEVE THOUSANDS OF PEOPLE HAD BEEN EVACUATED WWI CLINTON SUMMONED CHRISTOPHER BACK TO WASHINGTON TO CONFER ON LEBANON THE SECRETARY OF STATE CUT SHORT AN ASIAN TRIP TO CONSULT WITH THE PRESIDENT ON THE MIDEAST VIOLENCE CLINTON PLEDGING TO PRESS AHEAD WITH US PEACE EFFORTS ACCUSED IRAN AND HEZBOLLAH GUERRILLAS OF TRYING TO DERAIL THE NEGOTIATING PROCESS HE PRAISED SYRIA FOR SHOWING COMMENDABLE RESTRAINT IN SOUTHERN LEBANON ISRAELI FORCES HAMMERED VILLAGES ON THE THIRD DAY OF AN ANTIGUERRILLA OFFENSIVE MORE THAN 19 CIVILIANS AND GUERRILLAS WERE KILLED AND 150 WOUNDED THE GUERRILLAS RETALIATED WITH ROCKET ATTACKS WOUNDING SEVERAL ISRAELIS ISRAEL'S PRIME MINISTER RABIN WHO HAS VOWED TO MAKE SOUTHERN LEBANON UNINHABITABLE UNLESS GUERRILLAS CEASE THEIR ATTACKS TOLD LAWMAKERS HE WANTED TO OVERWHELM BEIRUT WITH REFUGEES GAYRIGHTS ADVOCATES SUED IN FEDERAL COURT IN WASHINGTON TO OVERTURN CLINTON'S DON'T ASK DON'T TELL POLICY ON HOMOSEXUALS IN THE MILITARY SAYING IT VIOLATES BASIC FREEDOMS SEPARATELY A HOUSE COMMITTEE ADOPTED A SENATE PANEL'S PROPOSAL GIVING COMMANDERS EVEN MORE LEEWAY THAN THE CLINTON POLICY TO DISCHARGE HOMOSEXUALS THE CLINTON ADMINISTRATION IS ASKING CONGRESS FOR 1725 MILLION AND NEW LEGAL TOOLS TO CRACK DOWN ON ILLEGAL IMMIGRATION THE PRESIDENT'S PLAN PUT TOGETHER WITH LAWMAKERS OF BOTH PARTIES CALLS FOR THE HIRING OF AN ADDITIONAL 600 BORDER GUARDS AND THE USE OF ANTIRACKETEERING LAWS TO CURB SMUGGLING OF ILLEGAL ALIENS YELTSIN'S OPPONENTS ACCUSED THE RUSSIAN PRESIDENT OF TRYING TO EVADE RESPONSIBILITY FOR A NATIONWIDE CURRENCY PANIC AS CITIZENS JAMMED BANKS TO EXCHANGE OLD RUBLES FOR NEW BILLS THE CENTRAL BANK CHIEF JOINED IN THE CRITICISM SAYING YELTSIN KNEW OF THE BANK'S PLANS TO INVALIDATE OLD NOTES IN GENERAL TERMS BEFORE THE WEEKEND DECREE THE GOVERNMENT EXPANDED TO FIVE FROM THREE ITS LIST OF DISEASES OFFICIALLY LINKED TO AGENT ORANGE BUT ANALYSTS SAID STILL OTHER CANCERS EVENTUALLY MAY BE TIED TO THE VIETNAMERA DEFOLIANT US OFFICIALS SAID THERE WAS CONCLUSIVE EVIDENCE LINKING THE HERBICIDE TO THREE TYPES OF CANCER AND TWO OTHER TYPES OF DISORDERS A CAR BOMB DEVASTATED A STREET IN DOWNTOWN MILAN KILLING AT LEAST FIVE PEOPLE AND INJURING SEVEN OTHERS AN HOUR LATER CAR BOMBS EXPLODED NEAR TWO HISTORIC SITES IN ROME ST JOHN LATERAN BASILICA AND THE CIRCUS MAXIMUS WHERE CHARIOT RACES WERE HELD TWENTYFOUR PEOPLE WERE INJURED AND THE CHURCH WAS BADLY DAMAGED UKRAINE IS DISMANTLING SOME OF ITS SS19 NUCLEAR MISSILES AND THE US IS READY TO PROVIDE AT LEAST 175 MILLION TO HELP THE FORMER SOVIET REPUBLIC BECOME A NONNUCLEAR STATE A US DEFENSE OFFICIAL SAID THE MISSILES WERE LEFT ON UKRAINIAN TERRITORY FOLLOWING THE BREAKUP OF THE SOVIET UNION BOSNIA'S MUSLIM PRESIDENT ANNOUNCED SOME PROGRESS DURING GENEVA TALKS WITH SERB AND CROAT LEADERS ON THEIR PLAN TO DIVIDE THE COUNTRY INTO THREE ETHNIC STATES MEANWHILE SERB FORCES OPENED A NEW ASSAULT ON STRATEGIC ZUC MOUNTAIN ON THE OUTSKIRTS OF SARAJEVO IRAQ HAS PLEDGED TO OPEN SECRET FILES ON ITS NETWORK OF ARMS SUPPLIERS BUT HASN'T SPECIFIED WHEN A UN OFFICIAL SAID MEANWHILE UN INSPECTORS INSTALLED MONITORING CAMERAS AT ONE MISSILE SITE AND PLANNED TO PUT CAMERAS AT A SECOND INSTALLATION TODAY THE US GOVERNMENT OUTLINED A PLAN TO SELL THOUSANDS OF APARTMENTS IT OWNS AS A RESULT OF FORECLOSING ON GOVERNMENTINSURED PROPERTIES THE PLAN COULD COST 4 BILLION OVER FIVE YEARS 9307280020 930728 MOODY'S LIFTS RATINGS ON 7 BILLION IN ISSUES OF FIRST INTERSTATE NEW YORK MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON 7 BILLION OF FIRST INTERSTATE BANCORP SECURITIES ANOTHER SIGN OF THE BIG BANK'S CONTINUING RECOVERY MOODY'S CITED FIRST INTERSTATE'S IMPROVED CAPITAL LEVELS AND ASSET QUALITY AS WELL AS ITS RELATIVELY HIGH LEVEL OF RESERVES AGAINST FUTURE LOSSES JUST TWO YEARS AGO FIRST INTERSTATE REELING FROM DISASTROUS MOVES INTO TEXAS AND ARIZONA IN THE 1980S WAS IN DANGER OF BEING TAKEN OVER AND DISMEMBERED BY STRONGER RIVALS BUT IT HAS CUT COSTS SHED UNDERPERFORMING ASSETS AND RESTORED PROFITABILITY FOR THE SIX MONTHS ITS NET INCOME MORE THAN TRIPLED TO 4402 MILLION OR 540 A SHARE MOODY'S LIFTED ITS RATINGS ON ABOUT 10 ISSUES OF THE BANK OR ITS UNITS AND CONFIRMED SEVERAL OTHER RATINGS THAT HAD BEEN UNDER REVIEW FOR POSSIBLE DOWNGRADE FOR EXAMPLE IT BOOSTED ITS RATING ON THE PARENT COMPANY'S PREFERRED STOCK TO BAA1 FROM BAA2 A FIRST INTERSTATE SPOKESMAN SAID WE'RE HAPPY TO SEE THIS WE'VE MADE A LOT OF PROGRESS ADDRESSING THE PROBLEMS WE HAD IN LATE NEW YORK STOCK EXCHANGE TRADING FIRST INTERSTATE CLOSED AT 6525 A SHARE UP 50 CENTS 9307280019 930728 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 3 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 ALL 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 59 DAYS 312 60 TO 89 DAYS 315 90 TO 119 DAYS 318 120 TO 149 DAYS 320 150 TO 179 DAYS 333 180 TO 229 DAYS 343 230 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 266 TWO MONTHS 270 THREE MONTHS 292 SIX MONTHS 315 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 320 THREE MONTHS 342 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 3/8 3 1/4 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 711 60 DAYS 718 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 708 60 DAYS 718 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 9307280018 930728 MULTIMEDIA AT&T'S SECRET MULTIMEDIA TRIALS OFFER CLUES TO CAPTURING INTERACTIVE AUDIENCES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A TWOYEAR SECRET RESEARCH PROJECT AT AMERICAN TELEPHONE & TELEGRAPH CO IS YIELDING WHAT MAY BE THE FIRST COMPREHENSIVE SCIENTIFIC TESTING OF INTERACTIVE MULTIMEDIA CONTENT AND DEVICES WHILE OTHER COMPANIES PAINT SPECULATIVE VISIONS OF THE INTERACTIVE MULTIMEDIA FUTURE THE GIANT TELECOMMUNICATIONS COMPANY CONCLUDES THE NEW SERVICES WILL HAVE TO BE MINDLESSLY SIMPLE TO OPERATE AND PRESENTED AS AN ADVANCED FORM OF TELEVISION ENTERTAINMENT INTERACTING CONSUMERS WON'T PLAY ON SOUPEDUP PCS AT&T SAYS IN THE RESEARCH DIRECTED FROM A DEVELOPMENT LAB AT AT&T'S DOWNTOWN NEW YORK HEADQUARTERS TEST VIEWERS MOSTLY PLAYED GAMES BUT THE EXERCISE WAS SERIOUS AND ITS SCOPE EXCEEDED THAT OF OTHER TESTS BEING CARRIED BY CABLE AND OTHER PHONE COMPANIES HUGE CORPORATIONS ARE FORMING GLOBAL ALLIANCES TO CAPITALIZE ON AN ANTICIPATED MULTIMEDIA BOOM BUT AS THEY PLACE BILLIONDOLLAR BETS MOST RELY ON INTUITION CONCEDING THEY DON'T KNOW WHICH PRODUCTS AND SERVICES COULD MAKE MONEY COMPLETED IN APRIL THE EIGHTMONTH TRIAL HEADED BY VINCENT GROSSO A FORMER PUBLIC RELATIONS EXECUTIVE FOR AT&T INVOLVED 50 HOMES OF VOLUNTEER AT&T EMPLOYEES 140 PEOPLE IN THE CHICAGO AREA PARTICIPANTS USED REMOTE CONTROLS LINKED THROUGH THE AT&T NETWORK TO A COMPUTER SERVER IN NEW YORK FOCUS GROUPS MET EVERY FEW WEEKS TO DISCUSS HOW THE SERVICE COULD BE IMPROVED TUNING INTO WHAT AT&T INSIDERS HAVE CODENAMED VINNIEVISION THE CONSUMERS COULD PERUSE SUCH HOHUM INFORMATION PROGRAMS AS CONSUMER REPORTS AND THE WEATHER BUT THEY SPENT THE MOST TIME PLAYING GAMES WITH NAMES LIKE PRICEBUSTERS SPORTS ZONE AND DICEY AT&T FOUND KIDS TALKED LESS ON THE PHONE WHEN THEY HAD THE INTERACTIVE TV KNOWN OFFICIALLY AS RCTV FOR REMOTE CONTROL TELEVISION WHICH ALSO WORKS VIA PHONE LINES IT ALSO LEARNED THAT THE PROGRAMS PEOPLE WATCHED MOST HAD A COMBINATION OF FOUR FEATURES ENTERTAINMENT TRANSACTIONS COMMUNICATIONS AND INFORMATION FOR EXAMPLE A SPORTS PROGRAM INCLUDED THE ABILITY TO BUY SPORTS PRODUCTS TO RELAY THE SHOW TO A FRIEND AND TO CLICK FOR ADDITIONAL SPORTS STATISTICS ON RCTV'S ELECTRONICMAIL SERVICE PEOPLE COULD SEND EACH OTHER MESSAGES OR TALK TO DAVE HE'S ACTUALLY DAVID WALLS A SHAGGYHAIRED ELECTRONIC BULLETINBOARD EXPERT HE SAYS AT&T FOUND THE SERVICE WAS ACTUALLY A COMMUNITY WHERE PEOPLE WOULD WRITE TO EACH OTHER AND ASKED DAVE TO POST THEIR PICTURES ON THE SCREEN PARTICIPANTS COMPETED ON A MOVIE TRIVIA SHOW USING THEIR REMOTE CONTROLS GRANDMOTHERS BATTLED CROSSTOWN WITH 16YEAROLDS OVER THE NETWORK FOR PRIZES I WON A BACKPACK A PANASONIC CASSETTE PLAYER A GRILL AND A JUICER EXCLAIMS DOROTHY O'HARA 66 WHO BECAME A DAILY PRICEBUSTERS JUNKIE AFTER HER DAUGHTER KATHY AN AT&T EMPLOYEE WAS PICKED TO GET THE SERVICE SOON DOROTHY'S DAILY ROUTINE OF BREAKFAST FOLLOWED BY VINNIEVISION'S CLONE OF THE PRICE IS RIGHT BECAME TOO MUCH SHE WAS ADDICTED SAYS KATHY O'HARA I LOST MY MOTHER THE WALBERTS CONVERSELY FOUND ONE ANOTHER AT&T'S INTERACTIVE SERVICE BONDED OUR FAMILY RECALLS STEPHEN WALBERT AN AT&T NETWORK DESIGNER WHOSE FAMILY GOT TO USE THE CHICAGO SERVICE HE SAYS HIS 14YEAROLD SON STEPHEN II DROPPED NINTENDO AND MRS WALBERT CLICKED OFF HER SOAP OPERAS AS THE FAMILY TEAMED UP TO WIN A GAME TOURNAMENT AGAINST OTHER FOLKS ON THE NETWORK I'LL NEVER FORGET APRIL 5 WHEN THEY UNPLUGGED US AND ENDED THE TEST HE SAYS WE WENT THROUGH WITHDRAWAL OTHER CHILDREN OF THESE MULTIMEDIAAGE GUINEA PIGS WATCHED CLICKETY CORNERS A KID'S PROGRAM THAT HELPED THEM TO SPELL A STILL IMAGE OF A GENIE'S HEAD AND TURBAN WOULD TRANSFORM ITSELF INTO SAY A CAT ALL THE WHILE IN THE MANHATTAN CENTER EACH PURCHASE EACH PREFERENCE IS BEING CAREFULLY RECORDED SOFTWARE DEVELOPER ALEX MAGHEN TAPS ON HIS PC KEYBOARD AS HE PULLS APART A LIBRARY OF COMPUTER CODE I'M STORING USER INFORMATION AND CUSTOMIZING THEIR EXPERIENCES HE SAYS ONE BIT OF HIS CODE ALLOWS THE VIEWER TO RETURN AUTOMATICALLY TO A PREVIOUSLY WATCHED FAVORITE PROGRAM WHEN HIS TV IS SWITCHED ON IN ANOTHER ROOM LESLIE LAVELANET DOWNLOADS AUDIO TAPE AND CONVERTS IT TO DIGITAL CODE ACROSS THE HALL ELEANOR SHELTON A GRAPHIC ARTIST IS USING HER COMPUTER TO TURN AN ANIMATED PICTURE OF BREAD INTO JAM FOR THE SPELLING GAME MR GROSSO'S TEAM PUMPED THIS MATTER TO THE CHICAGO RESIDENTS THROUGH THE AT&T NETWORK THE SERVICE WAS THEN DELIVERED FROM A BROADCAST CENTER ATOP THE HANCOCK TOWER IN CHICAGO TO SMALL ROOFTOP ANTENNAS VIA MICROWAVE RADIO A CABLE CONNECTED TO THE ROOF ANTENNA THEN FED THE PROGRAMS TO A TV INSIDE THE HOME COMPUTERS TRACKED PROGRAM USE REACTING TO EACH CLICK ON A CUSTOMER'S REMOTE CONTROL AT THE SAME TIME TECHNICIANS STUDIED THE COMPUTER PROCESSING PROBLEMS POSED BY THE NEW PROGRAMMING AND HOW MUCH INTERACTIVE TRAFFIC THE NETWORK'S PROCESSORS COULD HANDLE WHEN EXPERIMENTS DEMAND MORE PROCESSING POWER BELL LABS COMPUTERS IN MURRAY HILL NJ WILL TAKE OVER MR GROSSO SAYS AT&T'S WORK IS ON THE RIGHT TRACK SAYS ROBERT MEYERS VICE PRESIDENT OF PLANNING AND DEVELOPMENT AT VIACOM INC A PROGRAMMING CONCERN AND CABLE OPERATER AT&T AND VIACOM ARE JOINING FORCES FOR A FIELD TRIAL OF INTERACTIVE SERVICES IN EARLY 1994 THE TEST OF INTERACTIVE SERVICES WILL INVOLVE SEVERAL THOUSAND VIACOM CABLE TV CUSTOMERS IN CASTRO VALLEY CALIF I WAS VERY IMPRESSED WITH AT&T'S SKUNKWORKS MR MEYERS SAYS AT&T IS INTO EVERY PIECE OF THE INTERACTIVE MARKET UP TO AND INCLUDING CONTENT FROM A TECHNOLOGY STANDPOINT THEY'RE IN VERY DEEP ADDS RICHARD LEEGANT A SENIOR VICE PRESIDENT AT CUC INTERNATIONAL INC OF STAMFORD CONN WHICH RAN AT&T'S SHOPPING SERVICES DURING THE TRIAL AT&T IS CLEARLY LEADING WITH THIS TESTING THE LAB IS ALREADY TEACHING AT&T SOME INTERESTING LESSONS ABOUT THE POTENTIAL VIEWING HABITS OF INTERACTIVE TV WATCHERS FOR INSTANCE AT&T LEARNED THAT FUTURE SERVICES MUST BE TV ENTERTAINMENTBASED NOBODY GOT UP TO GET CLOSER TO THE SET MR GROSSO NOTES THEY SAT BACK TO BE ENTERTAINED IT'S A TV PARADIGM THAT MEANS TO SUCCEED IN THIS GAME WHATEVER YOU PROVIDE WILL HAVE TO LOOK LIKE A TV NOT A COMPUTER HE SAYS MOREOVER NOBODY READ INSTRUCTIONS WE FOUND THAT EIGHTYEAROLDS WERE TEACHING THEIR PARENTS HOW TO USE THE SERVICES HE SAYS SO AT&T CHUCKED THE DIRECTIONS WHILE IT COULD BE YEARS BEFORE TECHNOLOGY ADVANCES TO THE POINT WHERE LINKING THE ENTIRE COUNTRY IS ECONOMICALLY FEASIBLE AT&T IS LEARNING VALUABLE LESSONS RIGHT NOW AT&T IS BETTING ON A METHODICAL SCIENTIFIC TESTING OF DEVICES PROGRAMMING AND CUSTOMER PSYCHOLOGY TO PROVIDE CLUES ABOUT ATTRACTING AND KEEPING VIEWERS IN AN INTERACTIVE MARKETPLACE THE RESEARCHERS INCLUDE TECHNICIANS GRAPHIC DESIGNERS AND TV EXPERTS FROM PLACES SUCH AS RADIO CITY MUSIC HALL THE CHILDREN'S TELEVISION WORKSHOP CITIBANK AND THE DEPARTMENT OF INTERACTIVE TELECOMMUNICATIONS OF NEW YORK UNIVERSITY'S SCHOOL OF ARTS ANXIOUS TO KEEP A COMPETITIVE EDGE OVER POTENTIAL RIVALS IN THE MULTIMEDIA RACE AT&T ASKED THESE FOLKS AND OTHER PARTNERS NOT TO MENTION ITS MANHATTAN PROJECT TO OUTSIDERS BUT THE TECHNICAL WORK MAY NOT BE AT&T'S BIGGEST HURDLE THE BIGGER CHALLENGE WILL BE TO DEVISE SHOWS THAT WILL KEEP GROWNUPS AND KIDS LIKE THE STEPHENS WALBERT GLUED TO THEIR SETS AND CLICKING THEIR REMOTES STEPHEN II FOUND THE CONSUMER REPORTS PROGRAM BORING KIDS DON'T NEED TO LOOK AT PRICES OF CARS HE SAYS AND ONCE HE MASTERED A GAME HE BECAME FRUSTRATED BY A LACK OF OTHER DIVERSIONS THE PROGRAMMING MUST BE KEPT LIVELY THROUGH CONSTANT UPDATES AGREES MRS O'HARA PROVIDE SUCH A SERVICE AND SHE'LL GLADLY PAY FOR IT SHE SAYS I PAY 53 A MONTH NOW FOR CABLE SHE SAYS WHAT ELSE DO I HAVE TO DO IT'S MORE FUN THAN LOOKING AT OPRAH 9307280017 930728 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CELLULAR INC AN OFFERING OF SENIOR SUBORDINATED DISCOUNT NOTES DUE 2003 VIA BT SECURITIES CORP GRAND CASINOS INC AN OFFERING OF 43 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP MERRILL LYNCH & CO AND LADENBURG THALMANN & CO SAGA COMMUNICATIONS INC AN OFFERING OF 685000 CLASS A COMMON SHARES SOMATOGEN INC AN OFFERING OF 40 MILLION IN CONVERTIBLE EXCHANGEABLE PREFERRED STOCK VIA LEHMAN BROTHERS AND MONTGOMERY SECURITIES 9307280016 930728 CHRYSLER PLANS 1994 PRICE RISE AVERAGING 2 BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT CHRYSLER CORP IS EXPECTED TO ANNOUNCE TOMORROW THAT IT IS RAISING PRICES ON 1994 MODELS AN AVERAGE OF 2 AN INCREASE THAT IS BELOW THE CURRENT INFLATION RATE AND ROUGHLY IN LINE WITH THE 18 PRICE INCREASE RECENTLY ANNOUNCED BY GENERAL MOTORS CORP SEPARATELY FITCH INVESTORS SERVICE INC SAID IT IS UPGRADING CHRYSLER'S DEBT RATING TO INVESTMENT GRADE ANALYSTS ARE ANTICIPATING THAT CHRYSLER'S DEBT RATING MAY ALSO BE UPGRADED LATER THIS YEAR BY STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC IF SO CHRYSLER PROBABLY WILL RAISE ITS DIVIDEND THE AUTO MAKER HAS PREVIOUSLY SAID IT WOULDN'T RAISE THE PAYOUT UNTIL ITS DEBT RATINGS ARE BOOSTED TO INVESTMENT GRADE CHRYSLER SAID ITS 1994 DODGE RAM PICKUP CHRYSLER'S FIRST NEW LARGE PICKUP IN MORE THAN 20 YEARS WILL HAVE A BASE PRICE OF 11824 AND A TOP PRICE OF JUST UNDER 30000 THE PRICING ANNOUNCEMENT CAME AS THE AUTO MAKER ROLLED OUT ITS FIRST PRODUCTION MODEL OF THE NEW TRUCK AT ITS WARREN MICH ASSEMBLY PLANT WHAT IS EXPECTED TO BE THE MOST POPULAR MODEL OF THE PICKUP THE RAM 1500 LARAMIE SLT EQUIPPED WITH A V8 ENGINE A FOURSPEED AUTOMATIC TRANSMISSION AIR CONDITIONING AND POWER WINDOWS AND DOOR LOCKS WILL SELL FOR 18140 UP 10 FROM THE 15391 PRICE FOR CHRYSLER'S OLD PICKUP TAKING INTO ACCOUNT A 1500 REBATE ON THE OLD MODEL BUT THE 1994 RAM HAS MUCH TO OFFER THAT THE OLDER PICKUP DIDN'T INCLUDING AN AIR BAG AND BOLD STYLING THAT HAS ATTRACTED RAVE REVIEWS DEALERS SAY THAT OVERALL CHRYSLER'S 1994 PRICES WILL INCREASE 2 TO 25 THAT WILL BE IN ADDITION TO PRICE INCREASES ALREADY ANNOUNCED IN JANUARY AND APRIL WHICH HAVE PUSHED YEARTODATE INCREASES CLOSER TO 4 THE 1994 PLYMOUTH VOYAGER MINIVAN WITH A V6 ENGINE AIR CONDITIONING AND OTHER POPULAR OPTIONS WILL LIST FOR 18097 THAT'S UP 28 FROM 17600 NOW AN INCREASE CHRYSLER SAYS IS MORE THAN ACCOUNTED FOR BY THE ADDITION OF A PASSENGERSIDE AIR BAG HOWEVER THE 1994 PRICE IS UP 4 FROM THE 1993 INTRODUCTORY PRICE OF 17405 9307280015 930728 FLOODED FARMERS PONDER THE LONG AND THE SHORT OF IT BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE AUTHOR CERTAINLY WASN'T WRITING ABOUT THE AMERICAN MIDDLE WEST BUT THOSE FAMOUS WORDS APTLY EXPRESS A FINANCIAL RIFT CREATED IN THIS NATION'S HEARTLAND BY THE FLOODS OF 1993 THE EASTWEST BOUNDARY OF THE MISSISSIPPI RIVER IS SEPARATING THE WINNERS FROM THE LOSERS THIS SUMMER NOT ONLY IN THE CORN AND SOYBEAN FIELDS BUT IN THE GRAIN PITS OF THE CHICAGO BOARD OF TRADE AS FARMERS IN SUCH FLOODRAVAGED STATES AS IOWA AND KANSAS BEMOAN THEIR STUNTED PLANTS AND MUDDY FIELDS MANY IN ILLINOIS INDIANA AND OHIO ARE RAISING BUMPER CROPS AND WESTERN FARMERS HAVE TAKEN ADDITIONAL BEATINGS AT THE BOARD OF TRADE WHILE THEIR EASTERN COUNTERPARTS HAVE USED THE MARKET TO LOCK IN BIG PROFITS THE ONLY REAL PROBLEM I'LL HAVE IS THE INTERNAL REVENUE SERVICE I'LL MAKE TOO MUCH SAYS MIKE WILLS WHO FARMS 1200 ACRES NEAR MORRIS ILL MR WILLS ESTIMATES THAT HIS POSITIONS AT THE CBOT WILL ADD AS MUCH AS 54000 TO WHAT HE EARNS SELLING HIS BIG CROP OF SOYBEANS THIS YEAR GALEN ISLEY A FARMER WHO RAISES CORN AND SOYBEANS NEAR RAINDRENCHED CEDAR FALLS IOWA ISN'T NEARLY AS LUCKY MR ISLEY HAS BEEN USING A CBOT INVESTING STRATEGY THAT REAPED BIG PROFITS IN THE PAST BUT THIS YEAR HE SAYS HIS POSITIONS IN CORN AND SOYBEAN OPTIONS HAVE PRODUCED THOUSANDS OF DOLLARS IN LOSSES IF IT HAD BEEN A NORMAL YEAR I'D HAVE BEEN IN GOOD SHAPE HE LAMENTS BUT IT'S A CRAZY YEAR THE MARKET'S MOVING IN REVERSE OF WHAT IT USUALLY DOES THE 145YEAROLD GRAIN MARKET AT THE BOARD OF TRADE AN EXCHANGE CREATED BY AND FOR FARMERS WAS THE PROTOTYPE FOR TODAY'S TRILLIONDOLLAR GLOBAL FUTURES AND DERIVATIVES INDUSTRY YET TODAY ONLY ABOUT 15 OF US FARMERS USE CBOT CONTRACTS UNLIKE THE HANDWAVING FLOOR TRADERS WHO SPECULATE IN FUTURES AND OPTIONS FOR A LIVING FARMERS TYPICALLY USE THE CONTRACTS TO HEDGE LOCKING IN SALES OF THEIR CROPS AT FAVORABLE PRICES FARMERS' HEDGES CAN NEVERTHELESS BE SOPHISTICATEDCOMPLEX ARRAYS OF OPTIONS FUTURES AND CASH FORWARD SALES THAT OFTEN HAVE THE EFFECT OF SPECULATING RATHER THAN HEDGING NEVER BEFORE ANALYSTS SAY HAVE THE FORTUNES OF FARMERS WHO TRADE THE BOARD AS HEDGING IS CALLED IN THE MIDWEST BEEN SO SHARPLY DIVIDED ALONG GEOGRAPHIC LINES THE MISSISSIPPI IS THE DIVIDE BETWEEN RICH AND POOR SAYS DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO A CHICAGO GRAIN ANALYSIS FIRM THE EAST IS WHERE THE RICHES ARE MUCH OF THE REASON FOR THE DISCREPANCY IS THE DISPARATE QUALITY OF CROPS ON OPPOSITE SIDES OF THE MISSISSIPPI WEST OF THE WATERWAY THE MOST SUSTAINED RAIN IN DECADES HAS SWOLLEN RIVERS STREAMS AND CREEKS FLOODING LOWLYING FARMLAND AND DROWNING OR STUNTING CROPS TO THE EAST LESSER RAINS HAVE ACTUALLY BEEN A BLESSING AND SOME FARMERS ARE LOOKING FORWARD TO HARVESTING RECORD YIELDS IT IS NORMALLY DROUGHT NOT RAIN THAT SPAWNS BULL MARKETS ALTHOUGH THE DEVASTATING FLOODING IN THE WESTERN CORN BELT HAS CREATED ONE THIS YEAR THE MARKET LACKS CONVICTION ANALYSTS SAY ANY HINT OF BETTER WEATHER PULLS DOWN CORN AND SOYBEAN PRICES SHARPLY ON MONDAY FOR EXAMPLE THE NATIONAL WEATHER SERVICE'S REPORT OF A HIGHPRESSURE RIDGE DUMPED THE PRICE OF THE NOVEMBER SOYBEAN FUTURES CONTRACT 17 1/2 CENTS OR MORE THAN 2 THE RESULT IS A CHOPPY VOLATILE MARKET THAT TENDS TO BENEFIT FARMERS WITH GOOD CROPS DON HARMS A FARMER IN TAMPICO ILL SAYS FARMERS IN THE EASTERN CORN BELT ARE DOING BETTER AT THE BOARD OF TRADE BECAUSE EVERY TIME THERE'S A RALLY THEY SHORT THE DAMN THING SELLING FUTURES CONTRACTS TO LOCK IN A HIGH PRICE FOR THEIR CORN AND SOYBEANS A FUTURES CONTRACT IS A COMMITMENT TO BUY OR SELL A COMMODITY IN THE FUTURE FOR A PRESPECIFIED PRICE BY SELLING SUCH CONTRACTS NOW FARMERS CAN GUARANTEE THEY WILL RECEIVE A GOOD PRICE WHEN THEY MARKET THEIR CROPS IN THE FALL MR HARMS SAYS HE HAS MADE ABOUT 20000 TRADING AT THE CBOT THIS YEAR HE CURRENTLY IS SHORT FUTURES CONTRACTS THAT REPRESENT ABOUT 100000 BUSHELS OF CORN A POSITION REFLECTING HIS OPINION THAT PRICES WILL DROP SHARPLY BEFORE THE HARVEST FOR VARIOUS REASONS FARMERS WEST OF THE MISSISSIPPI HAVEN'T BEEN SELLING AS MUCH AT THE CBOT MANY OF THEM CULTIVATING CROPS THEY SUSPECT WILL BE TOO WEAK TO SELL FOR A PROFIT AT HARVEST HAVE GOTTEN HURT TRYING TO COMPENSATE WITH LONG POSITIONS OR WAGERS THAT GRAIN PRICES WOULD RISE AT THE CHICAGO EXCHANGE A FEW WEEKS AGO AS RAIN POURED DOWN ON THEIR ALREADY SATURATED CROPS SOME FARMERS IN IOWA SAW THAT A BULL MARKET WAS DEVELOPING AT THE BOARD OF TRADE MANY OF THEM WADED INTO THE MARKET NOT TO SELL AND LOCK IN PROFITS BUT TO ASSUME LONG SPECULATIVE POSITIONS BUYING FUTURES CONTRACTS IN WAGERS THAT PRICES WOULD CONTINUE TO RISE BUT MOST GOT IN TOO LATE WE'VE GOT FARMERS WHO DISCOVERED THAT THEY'VE GOT SUBSTANTIAL REDUCTIONS IN THEIR CORN AND SOYBEAN POTENTIAL SAYS RUSS WASENDORF PRESIDENT OF WASENDORF & CO A CEDAR RAPIDS IOWA FIRM THAT BROKERS CBOT GRAIN CONTRACTS TO FARMERS SO THEY COME IN AND BUY ON THE BOARD TO COMPENSATE NOW THEY'RE LONG' TWO CROPS THE ONE AT THE BOARD AND THE ONE IN THE FIELD THEN WHEN THE PRICES GO DOWN UNEXPECTEDLY AS THEY HAVE THEY'RE LOOKING AT LOSSES IN BOTH POSITIONS CONSEQUENTLY MR WASENDORF SAYS THIS YEAR HAS BEEN MORE DISASTROUS THAN IT NEEDED TO BE FOR FARMERS IN IOWA AND OTHER FLOODED STATES I'VE SEEN SOME VERY SAD FACES HE SAYS THEY'RE FRUSTRATED THAT THE SOIL ISN'T GOING TO GIVE THEM ANYTHING AND THE MARKET ISN'T EITHER MR ISLEY'S LOSSES AT THE CBOT HAVEN'T SOURED HIM ON THE CONCEPT OF HEDGING HOWEVER HE HAS RECENTLY BEEN SELLING GRAIN ON THE CASH MARKET BY USING FORWARD SALES ARRANGEMENTS THAT WORK LIKE BOARD OF TRADE FUTURES CONTRACTS HOPEFULLY I'LL BREAK EVEN HE SAYS OR MAYBE END UP ON THE POSITIVE SIDE 9307280014 930728 CONTROL DATA SUN MICROSYSTEMS ARDEN HILLS MINN CONTROL DATA SYSTEMS INC WILL SELL SUN MICROSYSTEMS INC PRODUCTS IN ITS PACKAGES UNDER AN AGREEMENT ANNOUNCED YESTERDAY SUN ALREADY HAS SIMILAR AGREEMENTS WITH SYSTEMS INTEGRATORS SUCH AS ANDERSON CONSULTING ELECTRONIC DATA SYSTEMS CORP AND PRICE WATERHOUSE SUN AND CONTROL DATA SAID 9307280013 930728 CREDIT MARKETS TREASURY PRICES FINISH ABOUT EVEN AS INVESTORS GIVE LUKEWARM RECEPTION TO US TWOYEAR SALE BY THOMAS T VOGEL JR AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY PRICES ENDED LITTLE CHANGED YESTERDAY EVEN AS INVESTORS GAVE A LUKEWARM RECEPTION TO THE GOVERNMENT'S FIRST SALE OF NOTES OR BONDS IN MORE THAN A MONTH THE TREASURY SOLD 16 BILLION OF TWOYEAR NOTES AT A YIELD OF 426 WHILE THE RESULT WAS IN LINE WITH EXPECTATIONS TRADERS HAD TO PUSH YIELDS HIGHER IN THE EARLY AFTERNOON TO ENTICE BUYERS HOWEVER THE YIELD HAD ACTUALLY DROPPED TO 424 BY DAY'S END A SIGN THAT DEMAND HAD STRENGTHENED MANY INVESTORS REMAINED IN THEIR FOXHOLES BECAUSE OF WORRIES THAT THE FEDERAL RESERVE MAY ENGINEER A RATE INCREASE BEFORE THE END OF THE YEAR TRADERS SAID GENERALLY SPEAKING THE PERCEPTION IN THE MARKET IS THAT THE NEXT MOVE BY THE FED IS GOING TO BE A TIGHTENING AND SHORTTERM RATES WILL MOVE UP SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC THE BENCHMARK 30YEAR TREASURY BOND DROPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 105 21/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 668 FROM 667 ON MONDAY THE 10YEAR NOTE WAS UNCHANGED AT 102 16/32 FOR A YIELD OF 590 DESPITE A SCARCITY OF INTERESTED INVESTORS THE MARKET WAS ABLE TO ATTRACT ENOUGH BUYERS TO NUDGE DOWN THE YIELD ON THE TWOYEAR NOTES FOR AN AUCTION THAT HAD VERY LITTLE INTEREST FROM THE STREET AND MODEST RETAIL INTEREST IT WENT QUITE WELL GIVEN THAT BACKGROUND SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES THE DETAILS OF THE AUCTION REFLECTED THE UNINSPIRED BIDDING THE SOCALLED BIDTOCOVER RATIO FOR THE TWOYEAR NOTE WHICH COMPARES THE NUMBER OF BIDS SUBMITTED TO THOSE ACCEPTED WAS VERY WEAK AT 225TO1 OVER THE PAST 10 TWOYEAR NOTE AUCTIONS THE ISSUE HAS DRAWN AN AVERAGE RATIO OF 273TO1 ON THE POSITIVE SIDE NONCOMPETITIVE BIDS FROM INDIVIDUAL INVESTORS WERE HEALTHY AT 883 MILLION OVERALL MANY RETAIL CUSTOMERS AVOIDED THE AUCTION AND THE BULK OF THE NOTES ENDED UP IN THE HANDS OF DEALERS AND SPECULATIVE ACCOUNTS THERE WAS LACKLUSTER DEMAND FROM REAL INVESTORS AND REASONABLY GOOD DEMAND FROM TRADING ACCOUNTS MS CAMILLI OF MARIA FIORINI RAMIREZ SAID MS CAMILLI SAID MANY INVESTORS WHO IN THE PAST WOULD HAVE PARTICIPATED IN THE TWOYEAR NOTE AUCTION HAVE BEEN ADOPTING A MORE DEFENSIVE POSTURE INVESTORS WHO ARE INVOLVED IN THE SHORT END ARE SHORTENING THEIR DURATIONS MOVING INTO BILLS AND CASH SHE SAID RON CONNORS HEAD OF TRADING AT BEAR STEARNS & CO ALSO SAID THE RETAIL SUPPORT FOR THE MARKET HAS DISSIPATED RETAIL ACCOUNTS HAVE BEEN SELLERS NOT BUYERS HE SAID MR BRIGGS OF DEUTSCHE BANK SAID MANY INVESTORS WERE WAITING TO SEE TOMORROW'S SECONDQUARTER GROSS DOMESTIC PRODUCT REPORT AND THE JULY EMPLOYMENT FIGURES SLATED TO BE RELEASED NEXT FRIDAY WITH LITTLE DANGER OF THE MARKET RALLYING AWAY FROM THEM THERE'S NOT MUCH PENALTY TO WAIT HE SAID ONE PORTFOLIO MANAGER WHO SAID HE HAD MOVED SOME OF HIS MONEY TO THE SIDELINES BETTING THAT THE MARKET HAS ENTERED A TRADING RANGE WAS TONY TROTTA OF LESHNER FINANCIAL INC IN CINCINNATI I DON'T THINK WE'RE GOING TO MOVE HIGHER THAN 7 ON THE 30YEAR BOND AND I THINK 650 IS ABOUT AS LOW AS WE'RE GOING TO GO MR TROTTA SAID IN A RANGETRADING ENVIRONMENT MR TROTTA SAID THE TIME MAY BE RIPE TO LOOK TO OTHER MARKETS TO ENHANCE RETURNS PEOPLE ARE LIABLE TO MOVE INTO THE MORTGAGE SECURITIES MARKET TO PICK UP YIELD HE SAID ASIDE FROM THE AUCTION YESTERDAY TRADERS HAD VERY LITTLE TO FOCUS ON LATE IN THE SESSION THE JOHNSON REDBOOK SERVICE REPORTED CHAIN AND DEPARTMENT STORE SALES WERE UP A SOLID 24 FOR THE FIRST THREE WEEKS OF JULY OVER THE FIRST THREE WEEKS OF JUNE THE SERVICE WHICH TRACKS RETAIL SALES TRENDS IS AFFILIATED WITH LYNCH JONES & RYAN INC DEALERS ALSO WERE LEFT TO PONDER EVENTS IN WASHINGTON WHERE THERE WERE CONTINUED RUMBLINGS OF DISCONTENT WITH PRESIDENT CLINTON'S DEFICITREDUCTION PACKAGE FROM WITHIN THE DEMOCRATIC PARTY BUT WHILE THE MARKET HAD RESPONDED TO SUCH NEWS LAST WEEK TRADERS HAVE BEGUN TO DISMISS SUCH WRANGLING AS POLITICAL POSTURING THE MARKET STILL HAS TO CONTEND WITH MORE SUPPLY WITH THE TREASURY SET TO SELL 11 BILLION OF FIVEYEAR NOTES TODAY LATE YESTERDAY THE WHENISSUED FIVEYEAR NOTE YIELDED 525 UP FROM 524 ON MONDAY HERE ARE THE RESULTS OF THE SALE OF TWOYEAR NOTES 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 1995 BONDS OF INTERNATIONAL BUSINESS MACHINES CORP STONE CONTAINER CORP AND MANY STEEL PRODUCERS DROPPED IN REACTION TO NEGATIVE NEWS GENERALLY THE CORPORATE DEBT MARKET WAS RELATIVELY CALM INVESTMENTGRADE BOND PRICES WERE MOSTLY UNCHANGED FOLLOWING THE PRICE TREND IN TREASURYS IN THE JUNK BOND MARKET TRADING WAS LIGHT WITH PRICES GENERALLY FIRMER TRADERS SAID JUST UNDER 1 BILLION OF DEBT WAS PRICED ISSUES INCLUDED A DOLE FOOD CORP 400 MILLION TWOCLASS OFFERING A TORCHMARK CORP 100 MILLION ISSUE AND A PACIFIC SERVICE ELECTRIC & GAS CO SALE OF 300 MILLION OF SECURITIES TORCHMARK IS A DIVERSIFIED COMPANY WITH INTERESTS IN INSURANCE FINANCIAL SERVICES AND OIL AND GAS IBM'S DEBT TRADED DOWN AFTER IT WAS DOWNGRADED BY STANDARD & POOR'S CORP BECAUSE OF THE NEGATIVE IMPACT OF RESTRUCTURING CHARGES WHICH WERE ANNOUNCED YESTERDAY TRADERS SAID S&P SAID IT DOWNGRADED ITS SENIOR DEBT RATINGS ON IBM IBM CREDIT CORP IBM INTERNATIONAL FINANCE NV AND IBM JAPAN LTD TO SINGLEA FROM DOUBLEAMINUS S&P ALSO SAID IT LOWERED ITS PREFERRED STOCK RATING OF IBM TO SINGLEAMINUS FROM SINGLEAPLUS AND THE COMMERCIAL PAPER RATINGS OF IBM AND IBM CREDIT CORP TO A1 FROM A1PLUS ABOUT 21 BILLION OF RATED DEBT AND PREFERRED STOCK WAS AFFECTED S&P SAID SPREADS OR THE DIFFERENCE BETWEEN IBM BOND YIELDS AND THOSE OF COMPARABLE US TREASURYS WIDENED AS MUCH AS 010 PERCENTAGE POINT A SIGN OF WEAKENING DEMAND SEPARATELY SOME OF STONE CONTAINER'S BONDS FELL AS MUCH AS FOUR POINTS OR AS MUCH AS 40 FOR A BOND WITH A 1000 FACE VALUE S&P SAID IT DOWNGRADED THE COMPANY'S SERIES E CUMULATIVE CONVERTIBLE EXCHANGEABLE PREFERRED STOCK TO TRIPLEC FROM SINGLEB THE COMPANY'S DEBT WAS ALSO AFFECTED DOWNGRADES INCLUDE LOWERING THE RATING ON THE SENIOR UNSECURED DEBT TO SINGLEB FROM SINGLEBPLUS THE DOWNGRADES RESULT FROM CONCERNS OVER WEAKENING FINANCIAL FLEXIBILITY DUE TO CONTINUED PRICE WEAKNESS IN THE FIRM'S CORE LINERBOARD MARKETS AND RENEWED NEWSPRINT PRICE DETERIORATION FOLLOWING MORE POSITIVE NEWS IN THAT GRADE EARLIER THIS YEAR S&P SAID IN A NEWS RELEASE JULIAN SCHROEDER AN ANALYST AT BDS SECURITIES ADDED THAT STONE CONTAINER'S MARKETS HAVE TO SIGNIFICANTLY TURN AROUND JUST FOR THEM TO MEET THEIR INTEREST PAYMENTS MEANWHILE STEEL COMPANY BONDS FELL ON NEWS THAT THE INTERNATIONAL TRADE COMMISSION OVERTURNED PENALTIES IN HALF OF 72 DUMPING CASES BROUGHT BY THE US COMMERCE DEPARTMENT AGAINST FOREIGN PRODUCERS AS A RESULT THE SUPPLY OF IMPORTED STEEL IS EXPECTED TO INCREASE DRIVING DOWN PRICES TRADERS SAID WEIRTON STEEL CORP'S BONDS WERE DOWN BY ABOUT TWO POINTS TRADERS SAID THE PRICE ON THE COMPANY'S 10875 COUPON NOTES MATURING IN 1999 DROPPED TO 1005 FROM 1025 ACCORDING TO TRADERS MUNICIPAL BONDS ENDED ANOTHER TRENDLESS SESSION LITTLE CHANGED WITH THE HEAVY SUPPLY OVERHANG STILL THE MAIN FOCUS DEALERS CONTINUED TRYING TO UNWIND HEAVY INVENTORIES BUILT UP AFTER MORE THAN 10 BILLION OF DEBT WAS PRICED DURING THE PAST TWO WEEKS TO MAKE ROOM FOR NEW ISSUANCE AT LEAST ONE NEW OFFERING WAS AFFECTED BY THESE SUPPLY PRESSURES YIELDS ON MOST OF THE 440 MILLION OF NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY REFUNDING AND REVENUE BONDS WERE BOOSTED AS MUCH AS 005 PERCENTAGE POINT BY UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO THE OVERALL YIELD RANGE WAS ALTERED TO BETWEEN 350 IN 1995 AND 593 IN 2016 FROM THE INITIAL RANGE BETWEEN 350 IN 1995 TO 590 IN 2021 ISSUERS BROUGHT A TOTAL OF 14 BILLION OF MUNI DEBT TO MARKET THE SECONDARY MARKET REMAINED STAGNANT HOWEVER IN SECONDARY TRADING THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S 55 GENERAL TRANSPORTATION REFUNDING BONDS DUE 2022 ENDED UNCHANGED AT 96 TO YIELD 575 THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 NUCLEAR PROJECT NO 1 BONDS DUE 2017 WERE ALSO UNCHANGED AT 97 3/8 FOR A YIELD OF 587 PRICES OF MORTGAGE SECURITIES ENDED HIGHER ON SOME BUYING BY INSTITUTIONAL INVESTORS LONG ABSENT FROM TRADING AND ON PURCHASES BY DEALERS SEEKING COLLATERAL FOR NEW DEALS DEALERS WERE BUYING SOME ISSUES FOR USE AS COLLATERAL IN NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS TRADERS SAID MOST OF THAT INTEREST WAS IN 7 AND 75 COUPONS THEY SAID BUYERS OUTSIDE OF WALL STREET SUCH AS MONEY MANAGERS HELPED THE MARKET FIRM IN EARLIER DEALINGS TRADERS SAID INVESTORS ARE MAINLY INTERESTED IN STRAIGHT PASSTHROUGH SECURITIES SOME TRADERS BELIEVE THAT BUYING WAS COMING AT THE EXPENSE OF THE REMIC MARKET WITH MONEY MANAGERS SELLING INDIVIDUAL REMIC CLASSES IN ORDER TO BUY THE PASSTHROUGHS IN SECONDARY TRADING FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 SECURITIES FOR AUGUST DELIVERY ENDED 3/32 HIGHER AT 98 23/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FINISHED 6/32 HIGHER AT 98 25/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ALSO FINISHED 6/32 HIGHER AT 98 30/32 AGENCIES ANNOUNCED 800 MILLION IN NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS AND INCREASED ONE ISSUE BY 50 MILLION 9307280012 930728 REVIEW & OUTLOOK EDITORIAL WHY GRIDLOCK IN ATTACKING CONGRESS FOR DELAY AND GRIDLOCK THIS WEEK PRESIDENT CLINTON COMPLAINED THAT IT HASN'T EVEN PASSED A MIDWEST FLOOD RELIEF BILL WHY HE ASKED GOT ME WELL THERE'S AN ANSWER THE DELAY HAS BEEN OVER WHETHER FLOOD RELIEF SHOULD INCLUDE 100AWEEK HANDOUTS TO YOUTHS AGED 17 TO 30 ENROLLED IN JOB TRAINING PROGRAMS DESPITE ALL THE TALK OF DEFICIT CUTTING THE BILL THAT ROLLED THROUGH THE HOUSE YESTERDAY INCLUDED THIS BOONDOGGLE INTACT LAST WEEK 45 HOUSE DEMOCRATS JOINED WITH REPUBLICANS TO BLOCK THE FLOOD BILL MANY MEMBERS WERE UPSET THAT HOUSE RULES PREVENTED THEM FROM OFFERING AMENDMENTS THAT WOULD HAVE CUT SPENDING ELSEWHERE TO PAY FOR FLOOD RELIEF DEMOCRATIC REP TIM PENNY FOR EXAMPLE SUGGESTED THAT DOZENS OF FEDERAL PROGRAMS BE TRIMMED FIRST THIS CRISIS PRESENTS AN OPPORTUNITY TO THE PRESIDENT AND TO THE CONGRESS HE WAS IGNORED SO WERE REPUBLICANS WHO FINALLY CAVED ON THE PAY AS YOU GO ISSUE AND OFFERED TO SUPPORT THE BILL IF ONLY THE 100AWEEK STIPENDS WERE REMOVED DEMOCRATIC WHIP DAVID BONIOR AGREED TO SPEAK WITH REP MAXINE WATERS OF CALIFORNIA THE SPONSOR OF THE STIPENDS BUT SHE REFUSED TO BUDGE AND TO SATISFY HER DEMOCRATIC LEADERS HAD TO DELAY THE VOTE UNTIL THEY COULD TWIST ENOUGH ARMS TO PASS THE BILL STIPENDS AND ALL THE STIPENDS ARE TO PAY THE FOOD TRANSPORTATION AND GROOMING COSTS OF PEOPLE ALREADY ENROLLED IN A JOB TRAINING PROGRAM WE WERE CURIOUS ABOUT WHY THE HOUSE LEADERSHIP WOULD PROLONG GRIDLOCK ON FLOOD RELIEF FOR SUCH A PROGRAM DEMOCRATIC MEMBERS TOLD US IT WAS TO APPEASE THE BLACK CAUCUS EVER SINCE THE DEFEAT OF THE STIMULUS PACKAGE THE BLACK CAUCUS HAS MADE IT CLEAR ITS VOTE FOR PRESIDENT CLINTON'S OVERALL BUDGET DEPENDED ON FIRST GETTING MONEY FUNNELED INTO INNERCITY PROGRAMS THE 5200AYEAR STIPENDS ARE PART OF THAT ANTE INTERESTINGLY 5200 IS ABOUT THE NATIONWIDE AVERAGE TO EDUCATE SOMEONE IN PUBLIC SCHOOLS IF IT WENT INTO SCHOOL VOUCHERS MAYBE GRADUATES WOULD HAVE AN EDUCATION GOOD ENOUGH NOT TO NEED JOB TRAINING IN THE MEANTIME IF EVERY EMERGENCY BECOMES AN EXCUSE FOR DEFICITSWELLING PORK MAYBE A LITTLE GRIDLOCK ISN'T ALL A BAD THING 9307280010 930728 NORWEST REACHES PACT TO ACQUIRE FIRST UNITED BANK BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL NORWEST CORP CONTINUED ITS WESTWARD DRIVE WITH A DEFINITIVE PACT TO ACQUIRE FIRST UNITED BANK GROUP INC OF ALBUQUERQUE NM FOR STOCK CURRENTLY VALUED AT 2998 A SHARE OR 4905 MILLION FIRST UNITED HAS ASSETS OF ABOUT 342 BILLION AND WAS FORMED EARLIER THIS YEAR BY THE COMBINATION OF UNITED NEW MEXICO FINANCIAL CORP AND CLOSELY HELD FORD BANK GROUP OF LUBBOCK TEXAS ABOUT 18 BILLION OF FIRST UNITED'S ASSETS ARE IN NEW MEXICO AND ASSUMING SOME 400 MILLION IN PENDING ACQUISITIONS CLOSE A SUBSIDIARY WILL HAVE A TOTAL 2 BILLION IN ASSETS IN WEST AND CENTRAL TEXAS NORWEST WHICH IS BASED IN MINNEAPOLIS AND HAS 478 BILLION IN ASSETS CURRENTLY HAS NO BANKING OPERATIONS IN EITHER STATE UNDER TERMS OF THE AGREEMENT FIRST UNITED HOLDERS WOULD SWAP EACH OF THEIR COMMON SHARES FOR 11 SHARES OF NORWEST STOCK INCLUDING A PLANNED SWAP OF NORWEST COMMON FOR FIRST UNITED'S SERIES A AND C CONVERTIBLESTOCK ISSUES A NORWEST SPOKESMAN SAID THE MINNESOTA BANK HOLDING CONCERN EXPECTS TO ISSUE A TOTAL OF ABOUT 18 MILLION SHARES OR AN INDICATED 6 STAKE TO EFFECT THE ACQUISITION THE ACQUISITION WAS DISCLOSED AFTER THE MARKET'S CLOSE YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NORWEST SHARES CLOSED AT 2725 THE EXCHANGE RATIO UNDER THE AGREEMENT WOULD PROVIDE FIRST UNITED HOLDERS WITH 2998 A SHARE FOR EACH OF THEIR SHARES IN NATIONAL OVERTHECOUNTER MARKET TRADING FIRST UNITED SHARES CLOSED OFF 25 CENTS AT 2725 THE COMPANY'S SHARES TRADED AS LOW AS 1875 JUST LAST MAY BUT JUMPED IN MIDJULY AFTER THE COMPANY DISCLOSED THAT IT WAS IN MERGER TALKS WITH A FINANCIAL INSTITUTION IT DECLINED TO IDENTIFY NORWEST'S MOVE RESEMBLES IN SOME RESPECTS THE ACQUISITION LAST YEAR OF NEW MEXICO'S BIGGEST BANK SUNWEST FINANCIAL SERVICES INC BY BOATMEN'S BANCSHARES INC ANOTHER GROWTHMINDED MIDWESTERN BANK THAT PURCHASE SIMILARLY PROVIDED THE ST LOUIS COMPANY ITS ENTRY INTO NEW MEXICO AND AN INITIAL TOEHOLD INTO TEXAS THROUGH ACQUISITIONS NORWEST HAS ALREADY PUSHED INTO THE SOUTHWESTERN STATES OF COLORADO AND ARIZONA IT CURRENTLY HAS BANKING OUTLETS IN 13 UPPER MIDWESTERN AND WESTERN STATES THE BANK'S GROWING REACH FROM OHIO TO MONTANA AND DOWN THROUGH ARIZONA ALREADY REPRESENTS IN GEOGRAPHIC TERMS THE LARGEST CONTIGUOUS BANKING OPERATION IN THE MAINLAND US A NORWEST SPOKESMAN SAID NORWEST HAS SAID IN THE PAST THAT IT IS ALWAYS EXAMINING A VARIETY OF OPPORTUNITIES IN THE WESTERN US THE ACQUISITION IS SUBJECT TO APPROVAL BY FIRST UNITED SHAREHOLDERS AS WELL AS REGULATORS FIRST UNITED NOTED THAT ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER GERALD J FORD HAS AGREED TO VOTE HIS ABOUT 15 STAKE IN FAVOR OF THE AGREEMENT AND WILL BECOME A NORWEST DIRECTOR FIRST UNITED WHICH HAS BEEN PURSUING A STRATEGY OF ACQUIRING BANKS IN SMALLER COMMUNITIES PARTICULARLY IN THE WESTERN TEXAS REGION WHICH IS CONSIDERED TO HAVE A LARGE NUMBER OF SMALLISH BUT SOLID INDEPENDENT BANKS IN THE FIRST HALF FIRST UNITED HAD NET INCOME OF 159 MILLION OR 112 A SHARE NORWEST'S BID REPRESENTS ABOUT TWO TIMES FIRST UNITED'S BOOK VALUE AT JUNE 30 OF 1494 A SHARE 9307280009 930728 CORPORATE FOCUS PHILIPS REFITS DUTCH PLANT IN BOLD PLAN TO UNSEAT RIVALS COMPANY TO BE SOLE CHALLENGER TO JAPANESE FLATPANEL DISPLAY INDUSTRY BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL EINDHOVEN THE NETHERLANDS AT THE BACK OF A HUGE INDUSTRIAL PARK IN THIS WORKADAY DUTCH CITY SITS A GLEAMING MULTIMILLIONDOLLAR BUILDING CALL IT PHILIPS'S FOLLY THIS FACTORY WAS WITNESS A FEW YEARS AGO TO ONE OF PHILIPS ELECTRONICS NV'S BIGGEST FLOPS A 15 BILLION GUILDER 7734 MILLION VENTURE TO KEEP UP WITH THE MIGHTY JAPANESE INDUSTRY IN COMPUTERMEMORY CHIPS THE PLAN FAILED THE CHIP FACTORY WAS MOTHBALLED NOW PHILIPS EUROPE'S BIGGEST CONSUMERELECTRONICS COMPANY IS REFITTING THE PLANT FOR A NEW ASSIGNMENT AND IT'S EVEN RISKIER THAN THE LAST LATER THIS YEAR THE FACTORY WILL START ASSEMBLING FLATPANEL DISPLAYS THE THIN SCREENS USED IN LAPTOP COMPUTERS PORTABLE TELEVISIONS AND CAMCORDER VIEWFINDERS IT WILL BE THE FIRST FACTORY IN THE WORLD TO TRY UNSEATING JAPAN AS LEADER OF THE 37 BILLION WORLD MARKET FOR ADVANCED FLATPANEL DISPLAYS THAT MAKES IT THE ELECTRONICSINDUSTRY EQUIVALENT OF A MOON SHOT HIGHTECH HIGHCOST HIGHRISK AND HIGHLY INTERESTING THEY'RE UP AGAINST A FORMIDABLE INDUSTRY IN JAPAN SAYS LAWRENCE TANNAS A CONSULTANT IN ORANGE CALIF AND CHAIRMAN OF A RECENT US GOVERNMENTFUNDED STUDY OF THE JAPANESE FLATPANEL EFFORT COLLECTIVELY THE JAPANESE HAVE INVESTED MORE THAN 45 BILLION AND 20 YEARS INTO BUILDING A NEARMONOPOLY PHILIPS THINKS IT HAS FOUND A HIGHTECH SHORTCUT TO CATCH UP A NEW FACTORY PROCESS THAT IN THEORY COULD MAKE BETTER AND CHEAPER SCREENS MR TANNAS SAYS PHILIPS HAS THE TECHNOLOGY AND SIZE TO SUCCEED BUT HE WARNS THAT THE DUTCH HAVE YET TO DEMONSTRATE THEY CAN MATCH THE JAPANESE IN FULLSCALE LOWCOST PRODUCTION FROM THE FINANCIAL POINT OF VIEW THE RIGHT WORD FOR THE PROJECT IS CHALLENGING SAYS ONE EUROPEAN ELECTRONICS EXECUTIVE WHOSE COMPANY DECLINED A PHILIPS INVITATION TO JOIN IT IN THE MORE THAN 200 MILLION VENTURE THEY FACE A HERCULEAN TASK PHILIPS'S BOLD VENTURE IS WIDELY SEEN AS A TEST CASE OF WESTERN INDUSTRY'S ABILITY TO REGAIN GROUND LOST TO JAPAN THE US AND EUROPEAN INDUSTRIES MISSED THE BOAT IN FLATPANEL DISPLAYS IN THE 1970S WHEN THEY DISMISSED THE THENINFANT TECHNOLOGY AS UNPROMISING BUT IN JAPAN SHARP CORP NEC CORP TOSHIBA CORP AND OTHERS PLOWED AHEAD IRONED OUT THE TECHNICAL BUGS AND BY THE LATE 1980S BECAME THE WORLD'S DOMINANT SOURCES FOR PORTABLE COMPUTER DISPLAYS TOPEND MODELS CALLED ACTIVEMATRIX LIQUID CRYSTAL DISPLAYS FETCH 1200 APIECE MAKING THEM THE SINGLE MOST EXPENSIVE COMPONENT IN A TYPICAL PORTABLE COMPUTER PHILIPS'S FACTORY WILL BE THE FIRST OUTSIDE JAPAN TO MAKE ACTIVEMATRIX SCREENS FOR THE WORLD CONSUMER MARKET BUT THERE ARE OTHER COMEBACK PROJECTS USING NOVEL TECHNOLOGY MOTOROLA INC IN SCHAUMBURG ILL AND IN FOCUS SYSTEMS INC IN TUALATIN ORE FORMED A JOINT VENTURE LAST YEAR TO BUILD A FACTORY AND OIS OPTICAL IMAGING SYSTEMS INC IN TROY MICH TODAY THE PRIMARY US PRODUCER OF ACTIVEMATRIX DISPLAYS FOR THE MILITARY IS STUDYING WHETHER TO ENTER THE CONSUMER MARKET SAYS OIS PRESIDENT REX TAPP FOR THE WEST TO CATCH UP MR TAPP SAYS ALL IT TAKES IS TIME AND MONEY IT REALLY ISN'T A TECHNOLOGICAL THING HIS OWN COMPANY IS LAYING ITS PLANS SLOWLY AND METHODICALLY THOUGH PHILIPS'S APPROACH IS ALSO VALID HE SAYS PHILIPS IS TAKING THE PLUNGE IN ONE FELL SWOOP POWER TO THEM I WISH THEM WELL OF COURSE PHILIPS HAS A HISTORY OF TAKING BIG BOLD RISKS WITH MIXED RESULTS ITS WINNING INVENTIONS INCLUDE THE STANDARD MUSIC TAPE CASSETTE AND THE COMPACT DISK PLAYER ITS FAILURES INCLUDE THE ILLFATED COMPUTERCHIP VENTURE CALLED MEGAPROJECT PURSUED JOINTLY WITH GERMANY'S SIEMENS AG AND D2MAC A NEW EUROPEAN TELEVISION STANDARD THAT HASN'T CAUGHT ON CURRENTLY ITS BIGGEST WAGERS ARE ON PROMOTING ITS FLAT PANELS A NEW AUDIO SYSTEM CALLED DIGITAL COMPACT CASSETTE AND A NEW VIDEO STANDARD CALLED COMPACT DISKINTERACTIVE AND PHILIPS CAN'T AFFORD ANOTHER FLOP PROBLEMS PARTLY RECESSIONRELATED IN ITS CORE CONSUMERELECTRONICS DIVISION LED TO A NET LOSS OF 900 MILLION GUILDERS LAST YEAR TO RECOVER IT HAS CUT MORE THAN 52000 JOBS OR 17 OF ITS WORK FORCE SINCE 1989 ITS STOCK PRICE MEANWHILE KEEPS BUCKING UP AND DOWN IN THE PAST 13 MONTHS BETWEEN 395 GUILDERS AND 169 GUILDERS IN AMSTERDAM YESTERDAY PHILIPS'S STOCK CLOSED AT 3120 GUILDERS SO WHY ANOTHER LONGSHOT NOW ONE MAIN REASON FOR PHILIPS'S CONFIDENCE IS ITS TECHNOLOGY SAYS J CHRIS STUVE PRESIDENT OF FLAT PANEL DISPLAY CO THE PHILIPS AFFILIATE IN CHARGE OF THE PROJECT NORMALLY ACTIVEMATRIX DISPLAYS ARE CONTROLLED BY TINY TRANSISTORS ETCHED ONTO THE SURFACE OF THE GLASS PLATES THAT MAKE UP THE SCREEN THE TRANSISTORS STEER ELECTRIC CURRENTS AROUND THE PLATES ZAPPING THE PARTFLUID PARTSOLID LIQUID CRYSTALS SANDWICHED BETWEEN THEM INTO APPEARING DARK OR LIGHT PHILIPS PLANS TO SCRAP THE TRANSISTORS AND SUBSTITUTE SIMPLER ELECTRONIC COMPONENTS CALLED DIODES OTHERS INCLUDING THE JAPANESE HAVE MADE DIODE DISPLAYS BEFORE BUT PHILIPS SAYS IT HAS PATENTED A SOLUTION TO THE TECHNOLOGY'S TROUBLESOME BUGS THE RESULT IT SAYS WILL BE SCREENS EASIER AND CHEAPER TO MAKE AND THERE'S A BONUS BECAUSE DIODES ARE EVEN TINIER THAN THE MICROSCOPIC TRANSISTORS USED BY THE JAPANESE THEY'LL COVER LESS SURFACE AREA ON THE SCREENS AND BLOCK LESS LIGHT RESULT BRIGHTER LESS POWERHUNGRY SCREENS BUT THERE'S MORE PHILIPS IS ALSO DEVELOPING ANOTHER POTENTIALLY BETTER PROCESS THAT IT MAY SWITCH TO IN A FEW YEARS THIS REINSTATES THE TRANSISTORS BUT MAKES THEM IN JUST TWO OR THREE CHEAP STEPS IN THE FACTORY INSTEAD OF THE SIX TO EIGHT STEPS USED IN JAPAN THAT MEANS LOWER FACTORY COSTS PHILIPS SAYS THE TECHNOLOGY WAS INVENTED BY FRANCE'S STATE TELECOMMUNICATIONS LABORATORY IN THE LATE 1980S AND WAS BROUGHT TO PHILIPS BY A FRENCH PARTNER SOCIETE D'APPLICATIONS GENERALES D'ELECTRICITE ET DE MECANIQUE SA IT AND FRENCH STATECONTROLLED THOMSON SA EACH HAVE A 10 STAKE IN THE PHILIPS VENTURE OTHERS IN THE INDUSTRY AGREE THE TECHNOLOGY IS PROMISING BUT WARN THAT IN FULLSCALE PRODUCTION PHILIPS MAY FIND ITS PROCESS MORE COSTLY THEN THERE'S THE NORMAL RISKS OF SUPPLY AND DEMAND RIGHT NOW A WORLD SHORTAGE OF ACTIVEMATRIX SCREENS IS INFLATING PRICES BUT SUPPLIES ARE SET TO GROW AS THE JAPANESE EXPAND OUTPUT AND KOREAN AND TAIWANESE MANUFACTURERS PREPARE FACTORIES BUT MR STUVE SAYS YOU DON'T WIN IF YOU DON'T TAKE RISKS AGAINST FAILURE IN BUSINESS THERE ISN'T ANY 100 SECURITY 9307280008 930728 WHO'S NEWS BRUNSWICK CORP BRUNSWICK CORP LAKE FOREST ILL ROGER W SCHIPKE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF RYLAND GROUP INC WAS ELECTED A DIRECTOR OF THIS MARINE POWER PLEASURE BOATING AND RECREATION CONCERN THE MOVE INCREASES BOARD MEMBERSHIP TO 10 9307280007 930728 INTERNATIONAL PEARSON FOCUSING ON GROWTH IN MEDIA TO SHED FINE CHINA AND US OIL UNITS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITISH PUBLISHER PEARSON PLC PLANS TO SHED ITS ROYAL DOULTON CHINA UNIT AND ITS US OIL SERVICES SUBSIDIARY CAMCO AS PART OF A DRIVE TO FOCUS ALMOST WHOLLY ON THE MEDIA SECTOR PEARSON PUBLISHES THE FINANCIAL TIMES AND OWNS A 50 STAKE IN THE ECONOMIST MAGAZINE IT ALSO HAS INTERESTS IN REGIONAL NEWSPAPERS TELEVISION AND BOOK PUBLISHING INCLUDING PENGUIN BOOKS AND ADDISONWESLEY A US EDUCATIONAL PUBLISHER ONE OF PEARSON'S MAIN AREAS OF FUTURE EXPANSION IS EXPECTED TO BE IN TELEVISION IT RECENTLY TOOK CONTROL OF THAMES TELEVISION A UK COMMERCIAL TELEVISION COMPANY AND IT ALSO OWNS 175 OF SATELLITE TELEVISION STATION BRITISH SKY BROADCASTING AND 14 OF A NORTHERN ENGLISH COMMERCIAL STATION YORKSHIRETYNE TEES TELEVISION PEARSON EXECUTIVES DECLINED TO GIVE ANY DETAILS OF FUTURE EXPANSIONS BUT THEY MADE CLEAR THAT THEY WOULD LOOK IN BRITAIN AND ABROAD WE SHALL BE A MEDIA COMPANY WITH A BUSINESS AND BRANDS WHOSE QUALITY IS WIDELY RECOGNIZED IN ALL OUR FIELDS OF ACTIVITY CHAIRMAN LORD BLAKENHAM TOLD A NEWS CONFERENCE ANALYSTS REACTED POSITIVELY TO THE ANNOUNCEMENT OF THE PLANNED SALES IT'S EXTREMELY GOOD NEWS AS FAR AS THE QUALITY OF THE COMPANY'S EARNINGS IS CONCERNED SAID CHRIS MUNRO OF HOARE GOVETT IN 1992 ROYAL DOULTON AND CAMCO ACCOUNTED FOR 30 OF PEARSON'S 16 BILLION 24 BILLION OF SALES AND ABOUT 7 OF ITS 156 MILLION OPERATING PROFIT WITHOUT THE TWO BUSINESSES APPROXIMATELY 86 OF PEARSON'S CAPITAL WILL BE EMPLOYED IN THE MEDIA SECTOR AND RELATED AREAS SUCH AS BOOK PUBLISHING PEARSON ALSO OWNS 50 OF THE LONDONBASED LAZARD BROS MERCHANT BANK AND 9 OF THE LAZARD FRERES INVESTMENT HOUSES IN BOTH LONDON AND NEW YORK AS WELL AS A NUMBER OF HOLDINGS IN THE ENTERTAINMENT INDUSTRY INCLUDING THE LONDON WAXWORKS MUSEUM MADAME TUSSAUD'S OFFICIALS SAID PEARSON WILL RETAIN THESE HOLDINGS WHICH THEY SAID PROVIDE HEALTHY INCOME STREAMS WITHOUT TYING UP TOO MUCH CAPITAL PEARSON'S SHARES ROSE FOLLOWING THE ANNOUNCEMENT OF ITS NEW STRATEGY BUT THE GAINS WERE PARTIALLY REVERSED WHEN ARCHRIVAL RUPERT MURDOCH TOOK ADVANTAGE OF THE RALLY TO SELL JUST OVER ONE THIRD OF HIS PEARSON SHARES MR MURDOCH'S HOLDING COMPANY AUSTRALIABASED NEWS CORP CONFIRMED THAT IT SOLD 1614 MILLION PEARSON SHARES EQUIVALENT TO A NEARLY 3 STAKE AT 468 PENCE PER SHARE THROUGH GOLDMAN SACHS INTERNATIONAL IN LONDON ONLY THE DAY BEFORE NEWS CORP HAD BEATEN PEARSON TO THE DRAW IN ASIA BY TAKING CONTROL OF HONG KONGBASED STAR TV IN A 525 MILLION DEAL GIVING IT 636 OF THE SATELLITE TELEVISION COMPANY'S PARENT HUTCHVISION LTD IT'S BEEN A DOUBLE HIT FOR MURDOCH COMMENTED ONE INVESTMENT ANALYST PEARSON HAD EARLIER BEEN NEGOTIATING WITH STAR TV OVER A POSSIBLE LINKUP AS PART OF ITS PLANS TO EXPAND IN ASIA PEARSON SHARES CLOSED AT 467 PENCE 7 ON THE LONDON STOCK EXCHANGE UP 27 PENCE ON THE DAY BUT OFF THEIR PEAK OF 480 PENCE NEWS CORP HAD BUILT UP A STAKE OF 18 IN PEARSON IN 1988 BUT LATER REDUCED IT TO AROUND 8 WITH PART OF THAT HOLDING TIED UP IN AN ISSUE OF BONDS CONVERTIBLE INTO PEARSON SHARES THE SHARES SOLD YESTERDAY ARE UNDERSTOOD TO REPRESENT ITS REMAINING DISPOSABLE HOLDING DESPITE THE SETBACK WITH STAR TV ANALYSTS SAID THEY EXPECT FURTHER EXPANSION MOVES FROM PEARSON FAIRLY SOON THERE'S NO DOUBT IN MY MIND THAT THEY ARE PREPARING THE WARCHEST FOR SOME QUITE SUBSTANTIAL MEDIA EXPANSION VIGHNESH PADIACHY AN ANALYST AT BARCLAYS DE ZOETE WEDD SAID PEARSON OFFICIALS SAID ASIA IS STILL ONE OF THE GROUP'S PREFERRED AREAS FOR FUTURE GROWTH LORD BLAKENHAM ALSO POINTED TO NORTH AMERICA AS ANOTHER AREA OF POSSIBLE EXPANSION ROYAL DOULTON WILL BE SPUN OFF LATER THIS YEAR THROUGH A FREE ISSUE OF SHARES IN THE COMPANY TO PEARSON SHAREHOLDERS THE RENOWNED MAKER OF FINE BONE CHINA HAD SALES LAST YEAR OF 201 MILLION AND OPERATING PROFIT OF 107 MILLION ITS SHARES WILL BE LISTED ON THE LONDON STOCK EXCHANGE AND BASED ON CURRENT STOCK MARKET RATINGS ANALYSTS EXPECT IT TO HAVE A MARKET VALUE OF BETWEEN 150 MILLION AND 200 MILLION CAMCO MEANWHILE IS TO BE FLOATED ON THE NEW YORK STOCK EXCHANGE PROBABLY IN THE FIRST HALF OF NEXT YEAR IN AN OPERATION EXPECTED TO RAISE SEVERAL HUNDRED MILLION DOLLARS FOR PEARSON THE UNIT PROVIDES SPECIALIZED PRODUCTS AND SERVICES TO THE OIL AND GAS DRILLING AND PRODUCTION INDUSTRY 9307280006 930707 RULE OF LAW THE COUNTRY CLUB SET AT JUSTICE BY TERRY EASTLAND NEARING THE HALFWAY POINT OF HIS FIRST YEAR IN OFFICE PRESIDENT CLINTON HAS YET TO FILL EVEN ONE OF THE 123 VACANCIES 15 OF THE TOTAL ON THE LOWER FEDERAL BENCH AT LEAST HE HAS SELECTED HIS CHIEF JUDGEPICKER BOSTON LAWYER ELEANOR DEAN ACHESON BUT WHEN OR EVEN WHETHER MS ACHESON WILL TAKE OFFICE IS UNCLEAR HER CONFIRMATION IS ON HOLD WHILE THE SENATE JUDICIARY COMMITTEE SORTS OUT THE IMPLICATIONS OF HER MEMBERSHIP IN A COUNTRY CLUB SAID TO HAVE DISCRIMINATED AGAINST WOMEN AND BLACKS MS ACHESON IS THE GRANDDAUGHTER OF DEAN ACHESON HARRY TRUMAN'S SECRETARY OF STATE HER PARENTS HAD PRESIDENTIAL APPOINTMENTS IN DEMOCRATIC ADMINISTRATIONS MORE IMPORTANT SHE AND HILLARY RODHAM CLINTON WERE ROOMMATES AT WELLESLEY COLLEGE WHEN NAMED ASSISTANT ATTORNEY GENERAL FOR THE OFFICE OF POLICY DEVELOPMENT MS ACHESON NOTED THAT AT WELLESLEY SHE AND MRS CLINTON JOINED IN WHAT PASSED FOR POLITICAL DISRUPTION AND CIVIL DISOBEDIENCE MS ACHESON WOULD BE ONE OF SEVERAL APPOINTEES OF KEY LEGAL JOBS WHO UNLIKE ATTORNEY GENERAL JANET RENO HAVE CLOSE PERSONAL TIES TO BILL AND ESPECIALLY HILLARY CLINTON THEY INCLUDE ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL FORMER PARTNER OF MRS CLINTON'S AT THE ROSE LAW FIRM WHITE HOUSE COUNSEL BERNARD NUSSBAUM HE AND MRS CLINTON WORKED FOR THE HOUSE COMMITTEE INVESTIGATING THENPRESIDENT NIXON ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY III ANOTHER ROSE PARTNER DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER JR A ROSE PARTNER AND MR FOSTER'S SISTER SHEILA FOSTER ANTHONY WIFE OF FORMER ARKANSAS REP BERYL F ANTHONY SLATED TO HEAD THE JUSTICE'S LEGISLATIVE OFFICE WITH THE NOMINATION OF MS ACHESON WHOSE CONFIRMATION HEARING WAS HELD TWO WEEKS AGO MORE IS KNOWN ABOUT HOW THE ADMINISTRATION INTENDS TO SELECT JUDGES UNDER PRESIDENT REAGAN A SPECIFIC OFFICE HEADED BY AN ASSISTANT ATTORNEY GENERAL THE OFFICE OF LEGAL POLICY RECOMMENDED LOWERCOURT JUDGES UNDER PRESIDENT BUSH THAT OFFICE WAS ABOLISHED AS JUDICIAL SELECTION WAS HANDLED BY ASSISTANTS TO ATTORNEY GENERALS RICHARD THORNBURGH AND WILLIAM BARR MR CLINTON TO SOME EXTENT IS REVIVING THE REAGAN APPROACH OPD CREATED IN 1989 FOR OTHER PURPOSES WOULD BE HIS VERSION OF OLP MS ACHESON SAYS SHE DOES NOT CONSIDER IT PROPER TO ASK JUDICIAL CANDIDATES ABOUT THEIR POLICY VIEWS ON SUCH SOCIAL ISSUES AS ABORTION AND AFFIRMATIVE ACTION QUESTIONS REGRETTABLY ASKED DURING THE CARTER ADMINISTRATION SHE ALSO SAYS THAT WHATEVER A JUDICIAL CANDIDATE'S PERSONAL VIEWS WHAT MATTERS IS WHETHER THAT CANDIDATE WOULD FAITHFULLY APPLY THE LAW AND PRECEDENTS OF THE UNITED STATES SUPREME COURT MS ACHESON SAYS SHE WOULD NOT RECOMMEND A CANDIDATE WHO EXPRESSED A WILLINGNESS TO DECIDE A CASE BY SUBMITTING IT TO HIS OWN CONSCIENCE INSTEAD OF APPLYING THE LAW UNLIKE MR CLINTON MS ACHESON SAYS THAT NO LITMUS TESTS NOT EVEN ON ABORTION WILL BE APPLIED MS ACHESON SAYS SHE DOES NOT ENVISION ASKING CANDIDATES ABOUT THEIR JUDICIAL PHILOSOPHY AN INQUIRY MADE BY REAGAN AND BUSH JUDGEPICKERS THIS POSITION IS EITHER CUNNING OR NAIVE SHE MAY NOT ENVISION ASKING SUCH QUESTIONS BUT OTHERS WHO INTERVIEW CANDIDATES MAY ENVISION AND WILL CERTAINLY ASK SUCH QUESTIONS MR CLINTON HIMSELF IS ON RECORD ENDORSING WHAT HE CALLS AN EXPANSIVE VIEW OF THE CONSTITUTION AT THE MOMENT MATTERS OF JUDICIAL PHILOSOPHY MUST SEEM ABSTRACT TO MS ACHESON WHO FACES THE PRACTICAL PROBLEM OF GETTING CONFIRMED UNTIL MARCH SHE BELONGED TO THE COUNTRY CLUB OF BROOKLINE MASS WHICH HAS NO BLACK MEMBERS AND HAS TREATED WOMEN DIFFERENTLY FROM MEN IN PLACING A HOLD ON HER NOMINATION SEN LARRY PRESSLER R SD WANTS TO KNOW WHAT KIND OF CLUBMEMBERSHIP STANDARD THE SENATE IS NOW APPLYING TO JUDICIAL AND EXECUTIVEBRANCH NOMINATIONS IT'S A FAIR QUESTION DURING THE REAGAN AND BUSH ADMINISTRATIONS JUDICIARY COMMITTEE DEMOCRATS AGGRESSIVELY PRESSED THE CLUB ISSUE IN 1990 THE COMMITTEE ADOPTED A RESOLUTION THAT SAID MEMBERSHIP IN CLUBS DISCRIMINATING ON THE BASIS OF RACE COLOR RELIGION SEX DISABILITY OR NATIONAL ORIGIN CONFLICTS WITH THE APPEARANCE OF IMPARTIALITY REQQUIRED OF PERSONS WHO MAY SERVE IN POSITIONS IN THE FEDERAL JUDICIARY OR THE DEPARTMENT OF JUSTICE THE RESOLUTION SAID IT WOULD BE INAPPROPRIATE FOR NOMINEES WHO ARE MEMBERS OF SUCH CLUBS TO BE CONFIRMED UNLESS SUCH PERSONS ARE ACTIVELY ENGAGED IN BONA FIDE EFFORTS TO ELIMINATE THE DISCRIMINATORY PRACTICES IN 1991 THE COMMITTEE REJECTED A BUSH JUDICIAL NOMINEE DEEMED TO HAVE A CLUB PROBLEM EVEN THOUGH THE NOMINEE WHO QUIT THE CLUB ON THE EVE OF HIS HEARING APPEARED TO HAVE BEEN ACTIVELY ENGAGED IN THE NECESSARY BONA FIDE EFFORTS THIS YEAR HOWEVER THE COMMITTEE APPROVED THE SIMILARLY TROUBLED NOMINATION OF WEBSTER HUBBELL WHO QUIT THE COUNTRY CLUB OF LITTLE ROCK ON THE DAY OF HIS HEARING AND WHO SAID THAT AS A MEMBER FOR SIX YEARS HE HAD ASKED THE MANAGEMENT TO RECRUIT BLACK MEMBERS A SATISFACTORY BONA FIDE EFFORT APPARENTLY IF MR HUBBELL'S TREATMENT MARKED A DEPARTURE FROM PRECEDENT MS ACHESON'S WAS HYPOCRITICAL IN THE EXTREME DURING HER HEARING SHE WAS NOT EVEN ASKED ABOUT HER MEMBERSHIP IN THE COUNTRY CLUB WHEN THE ISSUE AROSE LAST WEEK A JUSTICE DEPARTMENT SPOKESMAN DENIED THE CLUB DISCRIMINATED AND IN A RESPONSE TO NEW COMMITTEE QUESTIONS MS ACHESON SAID NO ONE HAS EVER EXPERIENCED DISCRIMINATION AT THE CLUB NONETHELESS WHEN SHE JOINED THE CLUB IN 1985 IT DID NOT GRANT WOMEN FULL MEMBERSHIP MOREOVER MS ACHESON'S OWN LAW FIRM ROPES & CRAY QUIT USING THE CLUB AFTER THREE OF ITS OWN FEMALE LAWYERS WERE DENIED SERVICE IN A CLUB RESTAURANT MS ACHESON HAS THE FIRM SUPPORT OF SEN EDWARD M KENNEDY A LEADER OF THE DEMOCRATIC EFFORT TO PRESS THE CLUB ISSUE AGAINST REPUBLICAN NOMINEES SENATE REPUBLICANS WHO ARE DIVIDED ON WHETHER TO PRESS THE CLUB ISSUE AGAINST MS ACHESON SHOULD NOT ONLY PURSUE THE FACTS IN HER CASE BUT ALSO TAKE THE OPPORTUNITY TO DEVELOP A PRINCIPLED WAY FOR THE JUDICIARY COMMITTEE TO DEAL WITH SUCH MATTERS IN THE FUTURE TO DATE THE COMMITTEE'S DEFINITION OF A DISCRIMINATORY COUNTRY CLUB HAS PROVED MANIPULABLE AND ITS USE OF THE CLUB ISSUE AGAINST A NOMINEE HAS TURNED ON WHICH PARTY IE THE DEMOCRATS COMMANDS A MAJORITY WHATEVER MS ACHESON'S FATE MR CLINTON BADLY NEEDS THE HELP SHE OR SOMEONE ELSE COULD PROVIDE GIVEN THAT JUDGES RETIRE AT THE RATE OF FIVE PER MONTH THE WORKLOAD FOR WHOEVER HEADS OPD IS GROWING MR EASTLAND IS A FELLOW AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON DC SEE RELATED LETTER LETTERS TO THE EDITOR NOBODY'S BUSINESS BUT THEIR OWN WSJ JULY 28 1993 9307070131 YY93 MM07 9307280005 930728 ADVERTISING ADS AIM TO SELL HUSH PUPPIES TO NEW YUPPIES BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL ROCKFORD MICH THE HUSH PUPPIES HOUND THAT CUDDLY RUMPLED DROOPYEYED ICON OF THE US SHOE INDUSTRY IS ON A MISSION TO GET HIP NO LONGER CONTENT WITH ACTING SOLELY AS MASCOT FOR THE FUZZY PIGSKIN LOAFERS YOUR FATHER WORE THE HOUND WILL SOON BE PART OF AN AD CAMPAIGN IN PRINT THAT AIMS TO GET HUSH PUPPIES ON YOUNGER AMERICAN FEETSOMETHING THE BRAND HASN'T BEEN ABLE TO DO SINCE THE 1960S IMAGINE WELLWORN LEATHER HUSH PUPPIES APPEALING TO TEENAGE GRUNGE ROCKERS OR MACHINEWASHABLE HUSH PUPPIES THAT BOOMERS WILL BUY FOR THEIR BOOMER OFFSPRING OR DRESSY HUSH PUPPIES THAT YUPPIES WILL WEAR TO WORK SOUNDS UNLIKELY NOT TO THE MAN WHO IS DETERMINED TO REVIVE THE LINE WE WANT TO SEE THOSE NIFTY NATURAL CONTEMPORARY YOUNGER PEOPLE WEARING OUR SHOES SAYS GEOFF BLOOM CHIEF EXECUTIVE OFFICER OF WOLVERINE WORLD WIDE INC THE MAKER OF HUSH PUPPIES IT PROBABLY WON'T BE EASY CONSIDERING THAT THE LAST TIME HUSH PUPPIES WERE IN IN THE US WAS DURING THE KENNEDY ADMINISTRATION IN THE INTERVENING THREE DECADES WOLVERINE HAS SHOWN AN UNCANNY KNACK FOR MISMARKETING ITS PRODUCTS AND FOR MISSING IMPORTANT TRENDS EVEN SUCH OBVIOUS ONES AS THE BOOM IN ATHLETIC SHOES AND YET HUSH PUPPIES HAVE HAD SOME LUCK MORE RECENTLY WITH YOUNGER BUYERS ALTHOUGH NOT IN THE US OUTSIDE THE US YOUNG PEOPLE IN 60 COUNTRIES BUY HUSH PUPPIES FOR THEIR AMERICAN CACHET FOREIGN SALES OF HUSH PUPPIES SHOES TOTALED SEVEN MILLION PAIRS IN 1992 40 MORE THAN THE FIVE MILLION PAIRS SOLD IN THE US LAST YEAR IN AUGUST WOLVERINE PLANS TO LAUNCH A 5 MILLION AD CAMPAIGN AIMED AT BOOSTING DOMESTIC INTEREST IN HUSH PUPPIES THE ADS CAST ASIDE THE BRAND'S LOAFER IMAGE AND PLUG A DECIDEDLY NONHUSH PUPPIES MIX OF PRODUCTS THAT WOLVERINE HOPES WILL APPEAL TO AMERICANS WHO ARE MORE FAMILIAR WITH MTV THAN ED SULLIVAN NO 5 MILLION ISN'T MUCH COMPARED WITH THE TENS OF MILLIONS THAT HOT SHOE COMPANIES SUCH AS NIKE INC AND REEBOK INTERNATIONAL LTD ROUTINELY FORK OUT TO BUILD UP THEIR FLASHY IMAGES BUT FOR HUSH PUPPIES THAT AMOUNTS TO AN AGGRESSIVE FOURFOLD SPENDING INCREASE AND A MARKED DEPARTURE FROM ITS HYPESHY PAST IT'S ALSO A FAIR AMOUNT OF MONEY FOR A PRINT CAMPAIGN IN LEISURE SHOES EXPECT TO SEE HUSH PUPPIES ON THE FEET OF YOUTHFUL MODELS ADORNING THE PAGES OF SUCH MAGAZINES AS GQ DETAILS AND GLAMOUR SUCH ASPIRATIONAL PEOPLE AS WOLVERINE DESCRIBES THEM THEORETICALLY WILL INSPIRE OTHERS TO WELCOME HUSH PUPPIES INTO THEIR 1990S LIFESTYLES WOLVERINE NOW UNDERSTANDS THE POWER OF THEIR BRAND SAYS THOMAS BERNARDIN PRESIDENT OF THE BRAND'S NEW AD AGENCY CMEKHBB ADVERTISING OF SOUTHFIELD MICH THEY UNDERSTAND HOW THEY UNDERUTILIZED THAT POWER AND THEY NOW KNOW WHERE THEY WANT TO GO WITH IT AND THE HOUND HE KICKED OFF THE YOUTH MOVEMENT EARLIER THIS YEAR BY APPEARING ON THE COVER OF WOLVERINE'S ANNUAL REPORT THE DOG HAD HIS TYPICAL POUT BUT THIS TIME HE WAS IN THE ARMS OF A BEAMING JEANSCLAD YOUNG COUPLE CLEARLY HUSH PUPPIES NEEDS YOUNG PEOPLE IF IT HOPES TO REVERSE A MARKET SLIDE THAT DATES BACK TO THE MID1980S LAST YEAR HUSH PUPPIES HELD JUST 3 OF THE 17 BILLION MARKET FOR MEN'S CASUAL SHOES AND ONLY 15 OF THE 29 BILLION MARKET FOR WOMEN'S CASUAL SHOES DOWN FROM 45 AND 21 RESPECTIVELY IN 1983 HUSH PUPPIES APPEAL TO A CERTAIN KIND OF OLDER PERSON THAT MIDDLEOFTHEROAD MIDWESTERNER VERY CONSERVATIVE SAYS MARVIN BRANSDORF OWNER OF BRANDY'S SHOES IN POMPANO BEACH FLA THOSE CUSTOMERS ARE DYING RIGHT NOW TODAY THE BRAND TRAILS SUCH COMPETITORS AS THE GH BASS DIVISION OF PHILLIPSVAN HEUSEN CORP REEBOK'S CASUALSHOE DIVISION ROCKPORT AND THE MEN'S CASUALSHOESEGMENT LEADER DEXTER SHOE CO WHICH HELD A 68 SHARE LAST YEAR HOWEVER WOLVERINE'S BIGGEST CHALLENGE MAY BE WINNING OVER SKEPTICAL RETAILERS WHO AFTER YEARS OF SEDATE PRODUCT OFFERINGS GREW BORED WITH HUSH PUPPIES' BLAND IMAGE I THINK THEY HAD A GREAT NAME THAT THEY ABSOLUTELY ELIMINATED FROM THE MARKETPLACE SAYS JOHN MAIURI A STORE MANAGER FOR FAMOUS BRANDS SHOES IN DEARBORN MICH WHILE HUSH PUPPIES' COMPETITORS SPENT THE 1980S CAPITALIZING ON A BACKTOBASICS TREND THAT MADE COMFORTABLE SHOES THE RAGE WOLVERINE WAS LOSING SHELF SPACE IN BETTER DEPARTMENT STORES AND WOUND UP FROZEN OUT OF MACY'S DILLARD'S AND DAYTON HUDSON STORES THAT FINALLY FORCED WOLVERINE TO REEVALUATE ITS MARKETING PARTICULARLY AFTER ITS DEBACLE WITH BROOKS ATHLETIC SHOES AT A TIME WHEN RIVALS WERE SPENDING MILLIONS ON SUPERSTAR ENDORSEMENTS WOLVERINE FLOGGED BROOKS SNEAKERS FOR 11 YEARS WITHOUT SO MUCH AS PLACING AN AD IN SPORTS ILLUSTRATED AN EMBARRASSED WOLVERINE SOLD THE BROOKS DIVISION LAST YEAR AFTER RUNNING UP LOSSES TOTALING 148 MILLION THE COMPANY MAINTAINS MR BLOOM THE WOLVERINE CEO HAS LEARNED FROM ITS BUMBLING PAST HE SAYS WOLVERINE NOW REALIZES A GOOD SHOE AD DOESN'T EVEN NECESSARILY HAVE TO FOCUS PROMINENTLY ON THE SHOES ONE OF THE ADS IN THE COMING HUSH PUPPIES CAMPAIGN FEATURES A LARGE PHOTO OF A YOUNG WOMAN ON A PORCH SWING THERE IS NO CLOSEUP OF THE PRODUCT ONLY COPY EXPLAINING HOW HUSH PUPPIES CAN FIT NOT ONLY ONE'S FEET BUT ALSO ONE'S PSYCHE I THINK YOU CAN LOOK AT HUSH PUPPIES DOING SIGNIFICANTLY MORE CONSUMER ADVERTISING GOING FORWARD MR BLOOM SAYS AND I FRANKLY THINK WHEN WE DO IT EVERYONE IS GOING TO BE A LOT HAPPIER WITH THE WAY IT WORKS AUDI OF AMERICA INC SELECTED MCKINNEY & SILVER A SMALL RALEIGH NC AGENCY WITH BILLINGS OF 102 MILLION TO HANDLE ITS 30 MILLION ACCOUNT THE AGENCY BESTED HILL HOLLIDAY CONNORS COSMOPULOS OF BOSTON AND CARMICHAEL LYNCH OF MINNEAPOLIS AFTER A FOURMONTH REVIEW THE SELECTION IS PARTICULARLY SWEET FOR MCKINNEY SINCE IT WASN'T ONE OF THE ORIGINAL FINALISTS IT WAS INCLUDED ONLY AFTER AMMIRATI & PURIS DROPPED OUT LAST MONTH ROBERT C DOHERTY PRESIDENT AND CHIEF EXECUTIVE OFFICER AT MCKINNEY SAYS THE AGENCY WITH ABOUT 95 EMPLOYEES WILL HIRE ADDITIONAL EMPLOYEES AND OPEN AS MANY AS FOUR REGIONAL DOMESTIC OFFICES TO HANDLE THE ACCOUNT MR DOHERTY DECLINED TO DISCUSS DETAILS OF THE NEW CAMPAIGN BUT SAID HE EXPECTS IT TO BREAK AROUND THE BEGINNING OF 1994 ROY ROGERS RESTAURANTS THE UNIT OF HARDEE'S FOOD SYSTEMS INC THAT ENRAGED LUNCHROOM WORKERS BY POKING FUN AT THEM IN A COMMERCIAL IS CONTINUING ITS TRADITION OF TASTEFUL ADVERTISING WITH A FRIEDCHICKEN SPOT IN WHICH CAMPERS ARE EATEN BY BEARS FIRST TWO MEN WHO ARE CAMPING IN THE WOODS ARE READY TO EAT SOME BEAR MEAT TASTES JUST LIKE CHICKEN ONE SAYS TO THE OTHER WITH A MENACING LAUGH ANGRY BEARS INTRUDE ON THEIR CAMPSITE A VOICEOVER ADVISES LOOK IF YOU WANT THE TASTE OF CHICKEN COME TO ROY ROGERS CUT TO THE BEARS SITTING BY THE CAMPFIRE LICKING THEIR CHOPS TASTES JUST LIKE CHICKEN THEY AGREE AND THEN GUFFAW AND BELCH EARLE PALMER BROWN OF BETHESDA MD CREATED THE SPOTS WHO'S NEWS BOZELL NAMED JERRY STAHL 50 YEARS OLD EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF ITS MINNEAPOLIS OFFICE SUCCEEDING RON BENZA RECENTLY HIRED BY INTERPUBLIC GROUP'S MCCANNERICKSON TO HEAD ITS SAN FRANCISCO OFFICE SPLIT JOHN FOLLIS AND ELLIS VERDI WHO FOUNDED THE FOLLIS & VERDI AGENCY FIVE YEARS AGO ARE SPLITTING UP OVER PHILOSOPHICAL DIFFERENCES MR FOLLIS 39 IS LEAVING FOLLIS/DEVITO/VERDI AND OPENING HIS OWN SHOP FOLLIS ADVERTISING HE TAKES WITH HIM THE FRENCH TOAST APPAREL AND FUTAI UMBRELLA ACCOUNTS MR VERDI 37 REMAINS PRESIDENT OF DEVITO/VERDI 9307280004 930728 WHAT'S NEWS BUSINESS AND FINANCE IBM TOOK AN 89 BILLION PRETAX CHARGE AND PLANS TO CUT 35000 MORE WORKERS AND SHUT BUILDINGS AROUND THE WORLD THE COMPUTER MAKER ALSO SLASHED ITS DIVIDEND IN HALF ITS SECOND CUT THIS YEAR AND POSTED A SECONDQUARTER NET LOSS OF 804 BILLION IBM CHAIRMAN GERSTNER SAID HE BELIEVES THAT THE LATEST CUTS ARE THE LAST IBM WILL NEED THE COMPANY'S STOCK ROSE 325 OR 77 TO CLOSE AT 45625 US STEELMAKERS WERE DEALT A BLOW WHEN A FEDERAL TRADE PANEL CLEARED FOREIGN STEELMAKERS OF MOST PENDING CLAIMS OF UNFAIR TRADING THE DECISION EFFECTIVELY INVALIDATES DUTIES AVERAGING 37 ON 20 NATIONS USX'S STEEL STOCK FELL 13 WHILE BETHLEHEM'S FELL 21 AND NATIONAL STEEL'S 27 USX REPORTED A 311 MILLION SECONDQUARTER LOSS ON A BIG CHARGE AT ITS US STEEL UNIT WHILE STEEL MINIMILL NUCOR POSTED A 75 PROFIT RISE SEN BOREN COMPLICATED PROSPECTS FOR CLINTON'S ECONOMIC PLAN FOR THE SECOND TIME THIS YEAR BY ANNOUNCING HE IS LEANING AGAINST IT HE URGED A RATHER DRAMATIC CHANGE IN THE PLAN BUT ADMINISTRATION AND CONGRESSIONAL LEADERS CONTINUED TO PREDICT SUCCESS CONSUMER CONFIDENCE FELL IN JULY SHOWING THAT AMERICANS ARE STILL UNCERTAIN ABOUT THE ECONOMIC FUTURE SEPARATELY AN INDEX OF EMPLOYMENT COSTS INCREASED AT A SLOWER PACE IN THE LATEST QUARTER INDICATING THAT INFLATION SEEMS TO BE UNDER CONTROL GE'S NBC NETWORK WON THE BROADCAST TELEVISION RIGHTS TO THE 1996 SUMMER OLYMPIC GAMES IN ATLANTA AGREEING TO PAY A RECORD 456 MILLION CHRYSLER IS EXPECTED TO ANNOUNCE TOMORROW THAT IT IS RAISING PRICES ON 1994 MODELS AN AVERAGE OF 2 WELL BELOW INFLATION AND ROUGHLY IN LINE WITH A 18 RISE GENERAL MOTORS ANNOUNCED VOLKSWAGEN'S CHAIRMAN WARNED THAT VW WILL NO LONGER HOLD BACK IN ITS FIGHT AGAINST GENERAL MOTORS' ALLEGATIONS OF INDUSTRIAL ESPIONAGE AND SUGGESTED THAT INCRIMINATING DOCUMENTS MAY HAVE BEEN PLANTED BY GM THE CHAIRMAN ALSO SAID THAT HE WOULD HOLD A NEWS CONFERENCE THIS MORNING SALOMON SOLD 60 MILLION OF THREEYEAR NOTES WHOSE PRINCIPAL REPAYMENT IS TIED TO THE PRICE OF DIGITAL EQUIPMENT'S STOCK THE NEW SECURITIES PAY AN INTEREST OF 675 ANNUALLY BRITAIN'S PEARSON PLANS TO SHED ITS ROYAL DOULTON CHINA UNIT AND ITS US OIL SERVICE SUBSIDIARY AS PART OF THE FINANCIAL TIMES PUBLISHER'S DRIVE TO FOCUS ALMOST WHOLLY ON MEDIA TENNECO AND COASTAL TWO BIG PLAYERS IN THE NATURAL GAS PIPELINE BUSINESS RECORDED IMPROVED OPERATING RESULTS FOR THE SECOND QUARTER CHASE MANHATTAN REORGANIZED ITS CORPORATE BANK AS PART OF AN EFFORT TO INTEGRATE ITS BUSINESSES AND EXPAND ITS CAPITAL MARKETS ACTIVITIES STRATUS COMPUTER PREDICTED ITS 1993 EARNINGS WILL BE SLIGHTLY LOWER THAN 1992'S RESULTS SENDING ITS SHARE PRICE DOWN 550 OR 19 TO 2375 GREYHOUND LINES SAID PROFIT FOR THE SECOND QUARTER SOARED TO 56 MILLION AMID A STRUGGLE TO BOOST RIDERSHIP THE RESULTS WERE A REFLECTION OF THE TRANSPORTATION COMPANY'S COSTCUTTING NORWEST REACHED A DEFINITIVE PACT TO ACQUIRE FIRST UNITED BANK GROUP OF ALBUQUERQUE NM FOR STOCK CURRENTLY VALUED AT ABOUT 4905 MILLION LONDON SHARES JUMPED 12 THE STRONGEST SHOWING IN MORE THAN THREE WEEKS AMID HOPES AMONG INVESTORS FOR LOWER EUROPEAN INTEREST RATES IN TOKYO WHERE TRADING WAS SPARSE THE NIKKEI INDEX ROSE 6931 TO 1989139 BONDS LEHMAN BROTHERS TREASURY INDEX 530661 UP 318 COMMODITIES OIL 1842 A BARREL UP 35 CENTS DOW JONES FUTURES INDEX 12993 OFF 015 SPOT INDEX 12415 OFF 011 DOLLAR 10608 YEN OFF 062 17278 MARKS UP 00033 9307280003 930728 BUSINESS BRIEF GENERAL HOST CORP PURCHASE OF REMAINING STAKE IN SUNBELT NURSERY IS MULLED GENERAL HOST CORP STAMFORD CONN IS CONSIDERING BUYING THE REMAINING 505 OF SUNBELT NURSERY GROUP INC THAT IT DOESN'T ALREADY OWN UNDER THE PROPOSAL GENERAL HOST WOULD BUY 43 MILLION SHARES FOR 5 EACH IN APRIL GENERAL HOST OBTAINED ITS 495 STAKE OR 42 MILLION SHARES FROM PIER 1 IMPORTS INC IN EXCHANGE FOR 19 MILLION SHARES OF GENERAL HOST STOCK OR AN INDICATED PERSHARE PRICE OF 421 THE COMPANY SAID GENERAL HOST OPERATES FRANK'S NURSERY & CRAFTS STORES A NATIONAL CHAIN OF RETAIL NURSERY CRAFTS AND CHRISTMASMERCHANDISE STORES NURSERY RETAILER SUNBELT HAS TEXAS ARIZONA AND CALIFORNIA OUTLETS THE PROPOSAL IS SUBJECT TO COMPLETION OF FINANCING AS WELL AS THE APPROVAL OF THE BOARDS OF BOTH GENERAL HOST AND SUNBELT AND OF SUNBELT'S SHAREHOLDERS 9307280002 930728 YOUR MONEY MATTERS WHILE A CASE CAN BE MADE FOR MIDCAPS THE CAVEAT IS THAT THEY AREN'T CHEAP BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL TAKE THE MIDDLE ROAD THAT'S THE ADVICE MORE AND MORE INVESTMENT MANAGERS ARE GIVING THESE DAYS AS THEY PITCH THE MERITS OF MIDCAP STOCKS MIDCAP STOCKS ARE GENERALLY DEFINED AS STOCKS WITH A MARKET CAPITALIZATION OR PRICE TIMES SHARES OUTSTANDING OF 400 MILLION TO 5 BILLION THAT MAKES THEM SMALLER THAN THE HOUSEHOLDNAME LARGECAP STOCKS SUCH AS WALMART STORES INC OR PROCTER & GAMBLE CO YET LARGER THAN THE HIGHFLYING BUT VOLATILE SMALLCAP STOCKS SUCH AS IMMUNE RESPONSE CORP OR CLEARLY CANADIAN BEVERAGE CORP THE ARGUMENT IN FAVOR OF MIDSIZE STOCKS IS THAT THEY BORROW FROM THE BEST FEATURES OF LARGECAPITALIZATION AND SMALLCAPITALIZATION STOCKS WHILE MINIMIZING THE DRAWBACKS OF BOTH INVESTING IN MIDCAP STOCKS PROVIDES ALMOST THE SAME AMOUNT OF GROWTH AS SMALLCAP INVESTING SAYS RICHARD WEISS A PORTFOLIO MANAGER AT STRONG/CORNELIUSON CAPITAL MANAGEMENT BUT MORE IN LINE WITH LARGECAP INVESTING THE COMPANIES ARE MORE SEASONED SO THERE'S LESS RISK AND MORE LIQUID SO THEY'RE EASIER TO BUY HE SAYS WHAT'S MORE THE PERFORMANCE OF MIDCAP STOCKS TENDS TO RUN IN LONGTERM CYCLES SIMILAR TO SMALLCAPS' RETURNS LIKE SMALL STOCKS MIDCAPS TURNED IN STUNNING PERFORMANCE IN 1991 AND 1992 AFTER HAVING GENERALLY LAGGED BEHIND BIG STOCKS FROM 1984 THROUGH 1990 WE BELIEVE WE'RE STILL FAIRLY EARLY IN THE CURRENT OUTPERFORMANCE PERIOD SAYS JACK MARSHALL A PARTNER AT NICHOLAS APPLEGATE PLAYING ON THE APPEAL OF THE MIDCAP ARGUMENT A SLEW OF MUTUAL FUNDS ARE EMERGING THAT TARGET THE MIDSIZE SECTOR THESE INCLUDE NICHOLAS APPLEGATE'S CORE GROWTH FUND T ROWE PRICE MIDCAP GROWTH FUND RIGHTIME MIDCAP FUND PORTICO MIDCORE GROWTH FUND AND PFAMCO MID CAP GROWTH PORTFOLIO IN LATE 1991 MR WEISS AND COMANAGER CARLENE MURPHY REVAMPED THE STRONG OPPORTUNITY FUND TO SPECIALIZE IN MIDSIZE STOCKS ALSO NEW ON THE SCENE ARE MIDCAP INDEX FUNDS WHICH BUY AND HOLD BASKETS OF SHARES THAT ARE DESIGNED TO TRACK A SPECIFIC INDEX USUALLY STANDARD & POOR'S MIDCAP 400 THESE INCLUDE THE FEDERATED INDEX TRUST MIDCAP FUND PEOPLES S&P MIDCAP INDEX FUND AND CALIFORNIA INVESTMENT MIDCAP INDEX FUND BUT WHILE MIDSIZE STOCKS DO HAVE MUCH TO RECOMMEND THEM THEY ARE NO LONGER THE SCREAMING BUYS THEY WERE A COUPLE OF YEARS AGO IT'S NOT AT ALL A SLAM DUNK SAYS DENNIS TRITTIN HEAD OF US STOCK RESEARCH AT FRANK RUSSELL CO A PENSION CONSULTING COMPANY LIKE OTHER SECTORS OF THE STOCK MARKET MIDCAPS ARE NOW SELLING AT PRICES THAT ARE HIGH RELATIVE TO THE STOCKS' EARNINGS AND OTHER FUNDAMENTALS THE MAIN CAVEAT IS THAT MIDCAP ISN'T CHEAP SAYS STRONG/CORNELIUSON'S MR WEISS MOREOVER INVESTORS TEMPTED TO RUSH OUT TO SHIFT SOME OF THEIR MONEY INTO THE NEW MIDCAP PRODUCTS OUGHT TO FIRST CHECK THEIR CURRENT HOLDINGS MANY FUNDS THAT DON'T USE THE NAME MIDCAP ARE HEAVILY LOADED WITH MIDSIZE STOCKS ACCORDING TO AMY ARNOTT OF MORNINGSTAR INC 336 OUT OF 928 US DIVERSIFIED STOCK FUNDS QUALIFY AS MIDCAP FUNDS ALTHOUGH ONLY ABOUT A DOZEN SPECIFICALLY LABEL THEMSELVES THAT WAY TO DATE MORNINGSTAR DEFINES MIDCAP FUNDS AS HAVING MEDIAN MARKET CAPITALIZATION OF 1 BILLION TO 5 BILLION A SIZE CUT THAT IS IN LINE WITH BUT SOMEWHAT LARGER THAN THOSE OF THE MAJOR MIDCAP INDEXES THE WHOLE NOTION THAT MIDSIZE STOCKS MIGHT BE A DISTINCT INVESTMENT CATEGORY ONLY SURFACED FAIRLY RECENTLY THE TURNING POINT WAS THE LAUNCHING OF THE S&P MIDCAP 400INDEX IN 1991 FRANK RUSSELL AND WILSHIRE ASSOCIATES QUICKLY FOLLOWED WITH RIVAL MIDCAP INDEXES OF THEIR OWN ALL OF WHICH HAS ONLY SERVED TO ENHANCE THE SECTOR'S BRANDNAME LUSTER THE LONGTERM EXPERIENCE WITH MIDSIZE STOCKS IS THAT THEY GIVE YOU A LOT BIGGER BANG FOR YOUR BUCK RELATIVE TO THEIR RISK THAN LARGE OR SMALL STOCKS SAYS CLAUDIA MOTT DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES INC IN A STUDY OF PERFORMANCE GOING BACK TO 1926 MS MOTT FOUND THAT MIDCAPS NOT ONLY BEAT LARGE STOCKS HANDS DOWN BUT CAME CLOSE TO SMALL STOCKS' SIZZLING RECORD THEY AVERAGED RETURNS OF 113 A YEAR COMPARED WITH 117 FOR SMALL STOCKS AND 97 FOR LARGE STOCKS HISTORY'S ALL VERY FINE BUT HOW DO MIDCAP STOCKS STACK UP NOW IT'S A TOUGH AREA RELATIVE TO THE LAST COUPLE OF YEARS SAYS JOCK MCQUILKIN A MANAGING DIRECTOR AT CADENCE CAPITAL MANAGEMENT IN BOSTON WHICH MANAGES PFAMCO MID CAP FUND THE OVERALL EARNINGS OUTLOOK FOR MIDCAP STOCKS IS MIXED FOR INSTANCE SHORTTERM EARNINGS MOMENTUM WHICH TRACKS WHETHER ANALYSTS ARE BECOMING MORE OR LESS BULLISH ON EARNINGS AUGURS WELL FOR MIDCAP PERFORMANCE NOW THE MOST RECENT EARNINGS ESTIMATES FROM ANALYSTS ARE ACTUALLY STACKING UP BEST IN MIDCAP STOCKS TODAY COMPARED WITH LARGE AND SMALL STOCKS SAYS HANS ERICKSON DIRECTOR OF RESEARCH AT THE DAIS GROUP WHICH IS PREPARING TO OFFER A MIDCAP MUTUAL FUND THROUGH FRANKLIN RESOURCES BUT LONGERTERM ANALYSTS' FORECASTS FOR MIDCAP EARNINGS GROWTH OF 183 AND 187 ANNUALLY DURING THE NEXT TWO YEARS COULD EASILY BE DISAPPOINTED SKEPTICS WARN FOR ONE THING MIDCAP STOCKS ARE THE MOST VULNERABLE TO A WEAKER ECONOMY OF ANY STOCK SECTOR SAYS RUSSELL'S MR TRITTIN THE REASON IS THAT A VERY LARGE PORTION OF THEM ARE IN INDUSTRIES SUCH AS ENERGY BASIC MATERIALS AUTOS AND TRANSPORTATION WHICH ARE HYPERSENSITIVE TO ECONOMIC UPS AND DOWNS MEANWHILE MORE THAN ONETHIRD OF MIDCAP STOCKS ARE FINANCIALS AND UTILITIES WHICH WOULD BE BATTERED BY HIGHER INTEREST RATES IF THE ECONOMY PICKS UP HE ADDS BUT MANAGERS WHO ARE RIDING THE MIDCAP WAVE BRUSH OFF SUCH CONCERNS SUPPLYANDDEMAND CHARACTERISTICS HAVE A LOT MORE TO DO WITH WHAT WILL DO WELL IN THE MARKET THAN VALUATION MEASURES SAYS ELDON MAYER CHAIRMAN OF LYNCH & MAYER A LARGESTOCK GROWTH MANAGER THAT LAUNCHED INTO MIDCAP STOCKS LAST YEAR IT'S CLEAR TO US VERY ABUNDANTLY CLEAR THAT THE ASSET MOVEMENT INTO MIDCAPS IS ALIVE AND WELL AND HAS GOT A LONG WAY TO GO 9307280001 930728 TECHNOLOGY BRIEF ORGANOGENESIS INC TALKS TO RESTORE FUNDING BY LILLY END AND STOCK SAGS ORGANOGENESIS INC SAID TALKS AIMED AT RESUMING FUNDING BY ELI LILLY & CO FOR DEVELOPMENT OF A PRODUCT TO REPLACE HUMAN ARTERIES ENDED WITHOUT AGREEMENT YESTERDAY IN TRADING ON THE AMERICAN STOCK EXCHANGE THE SHARE PRICE OF ORGANOGENESIS TUMBLED ON THE NEWS CLOSING AT A 52WEEK LOW OF 725 OFF 1 THE STOCK'S 52WEEK HIGH IS 11 YESTERDAY'S VOLUME TOTALED 179700 SHARES UP SHARPLY FROM RECENT AVERAGE DAILY VOLUME OF 33243 LILLY STOPPED FUNDING OF A CODEVELOPMENT PROJECT FOR THE PRODUCT IN NOVEMBER CONTENDING THAT ORGANOGENESIS HADN'T MET CERTAIN TARGETS SINCE THEN THE COMPANY HAS BEEN FUNDING DEVELOPMENT ON ITS OWN AND SAID IT WILL CONTINUE TO DO SO OR SEEK ANOTHER PARTNER PRIOR TO LILLY'S WITHDRAWAL ORGANOGENESIS RECEIVED ABOUT 800000 EACH QUARTER FROM LILLY SINCE 1987 WHEN THE COLLABORATION BEGAN FOR 1992 ORGANOGENESIS HAD A LOSS OF 62 MILLION OR 69 CENTS A SHARE ON REVENUE OF 5 MILLION A SPOKESWOMAN SAID THE COMPANY PLANS TO PRESENT PRECLINICAL DATA ON THE PRODUCT CALLED GRAFTARTERY TO OTHER PARTIES 9307270154 930727 WHAT'S NEWS BUSINESS AND FINANCE STOCKS RALLIED AMID HOPES THAT GERMANY WILL CUT ITS INTEREST RATES THIS WEEK TO BOLSTER THE FRENCH FRANC AGAINST THE MARK THE DOW JONES INDUSTRIALS JUMPED 2096 POINTS TO 356770 THEIR SECOND RECORD IN LESS THAN A WEEK THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE NEARLY 3/8 POINT ITS YIELD FELL TO 667 FRANKFURT STOCK PRICES CLIMBED 13 ON THE INTERESTRATE SPECULATION TO THE HIGHEST LEVEL SINCE AUGUST 1990 ROBERT BASS AND A GROUP OF INVESTORS AGREED TO BUY A COLLECTION OF FOOD COMPANIES FROM ARTAL NV FOR ABOUT 1 BILLION IN WHAT WOULD BE THE LARGEST LEVERAGED BUYOUT IN NEARLY A YEAR CHEMICAL BANK REPORTEDLY AGREED TO UNDERWRITE A LOAN OF MORE THAN 500 MILLION TO HELP FINANCE THE BUYOUT BOEING POSTED HIGHERTHANEXPECTED PROFIT FOR THE SECOND QUARTER BUT WARNED THAT SECONDHALF SALES WILL BE DOWN ABOUT 20 THE RESULTS REFLECTED THE SOONERTHANEXPECTED DELIVERY OF 109 JETLINERS WHICH WOULD TEND TO HURT DELIVERIES IN THE SECOND HALF ROSS PEROT URGED THAT CONGRESS KILL THE CLINTON ADMINISTRATION'S ECONOMIC PLAN THAT US LAWMAKERS ARE NOW STRUGGLING TO COMPLETE AND START OVER ON A NEW ONE THAT WILL ELIMINATE THE DEFICIT RATHER THAN JUST REDUCE IT NORTHWEST AIRLINES' MACHINISTS APPEARED TO BE VOTING TO APPROVE THE REVISED CONCESSIONS PACKAGE THAT THE CARRIER SAID IT NEEDS TO WIN DEBT RESTRUCTURING FROM ITS LENDERS AMERICAN EXPRESS SAID PROFIT ROSE 34 FOR THE SECOND QUARTER DRIVEN BY AN IMPROVING CHARGECARD BUSINESS AND STRONG RESULTS AT ITS BROKERAGE AND MONEYMANAGEMENT UNITS THE FLAGSHIP TRAVEL RELATED SERVICES DIVISION REPORTED AN 89 JUMP IN PROFIT KENNETH CHENAULT IS EXPECTED TO BE NAMED PRESIDENT OF THE US OPERATIONS AT TRAVEL RELATED SERVICES CAPITAL CITIES/ABC NAMED THE HEAD OF ITS NETWORK GROUP ROBERT IGER TO BE EXECUTIVE VICE PRESIDENT SETTING HIM UP AS THE FRONTRUNNER TO SUCCEED DANIEL BURKE AS CHIEF NEXT YEAR A USCANADA PANEL REJECTED A US DECISION THAT TRIGGERED IMPORT TARIFFS ON CANADIAN SOFTWOOD LUMBER THE DECISION JOLTED THE US INDUSTRY AND GAVE AMMUNITION TO OPPONENTS OF A NORTH AMERICAN FREETRADE PACT PAINEWEBBER IMPROPERLY FORCED OUT FIVE BROKERS AFTER THEY REFUSED TO SELL PAINEWEBBER INHOUSE PRODUCTS INSTEAD OF COMPETING ONES TO THEIR CLIENTS AN ARBITRATION PANEL RULED NEWS CORP BOUGHT 636 OF STAR TV FOR 525 MILLION IN CASH AND STOCK SNATCHING THE PLUM OF ASIA'S FASTGROWING SATELLITE TELEVISION INDUSTRY NOVELL SAID OPERATING PROFIT FOR THE LATEST QUARTER WILL BE ABOUT THE SAME AS LAST YEAR INDICATING THE COMPUTER CONCERN MAY POST A SIZABLE LOSS SALES OF EXISTING HOMES ROSE 19 LAST MONTH AS THE NATIONAL HOUSING RECOVERY MAINTAINED A SLOW BUT STEADY MOMENTUM FUELED BY LOW INTEREST RATES AND PENTUP CONSUMER DEMAND SHORT INTEREST ROSE NEARLY 4 IN THE OVERTHECOUNTER STOCK MARKET AT MIDJULY TO A SIXTH CONSECUTIVE RECORD CALIFORNIA FEDERAL BANK OUSTED JERRY ST DENNIS AS CHAIRMAN AS THE TROUBLED THRIFT POSTED A 455 MILLION NET LOSS FOR THE SECOND QUARTER JAPAN'S ECONOMY WEAKENED IN THE APRILJUNE QUARTER AFTER SHOWING IMPROVEMENT IN THE PREVIOUS THREE MONTHS RECENT INDICATORS SUGGEST FALLING AUTO AND RETAIL SALES AS WELL AS CUTBACKS IN CAPITAL SPENDING CONTRIBUTED TO THE SLUGGISH QUARTER CHEVRON AND ATLANTIC RICHFIELD POSTED DECLINES IN EARNINGS FOR THE SECOND QUARTER WHILE PHILLIPS PETROLEUM MORE IN LINE WITH THE REST OF THE INDUSTRY REPORTED AN INCREASE IN PROFIT BONDS LEHMAN BROTHERS TREASURY INDEX 530343 UP 1428 COMMODITIES OIL 1807 A BARREL UP 32 CENTS DOW JONES FUTURES INDEX 13008 UP 050 SPOT INDEX 12426 OFF 008 DOLLAR 10670 YEN OFF 015 17245 MARKS UP 00050 9307270153 930727 WHO'S NEWS CAPITAL CITIES PROMOTING IGER HINTS AT FUTURE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC PROMOTED THE HEAD OF ITS NETWORK GROUP ROBERT A IGER TO EXECUTIVE VICE PRESIDENT OF THE CORPORATION SETTING HIM UP AS THE FRONTRUNNER TO SUCCEED DANIEL B BURKE AS PRESIDENT AND CHIEF EXECUTIVE NEXT YEAR MR IGER A 19YEAR VETERAN OF THE COMPANY AND ONETIME WEATHERMAN WITH A REPUTATION FOR MAKING BOLD CREATIVE DECISIONS HAS LONG BEEN REGARDED AS THE MOST LOGICAL OF SEVERAL INTERNAL CANDIDATES TO SUCCEED MR BURKE MR BURKE HAS SAID FOR A YEAR THAT HE WILL RETIRE IN FEBRUARY WHEN HE REACHES AGE 65 BUT WALL STREET ANALYSTS EXPRESSED CONCERN THAT THE COMPANY FAILED TO OUTLINE A SUCCESSION PLAN ANALYSTS GRILLED COMPANY EXECUTIVES ABOUT A SUCCESSOR AT A SPRING MEETING TO NO AVAIL CAPITAL CITIES DECLINED TO COMMENT ON MR IGER'S ROLE IN THE SUCCESSION ISSUE THE COMPANY ALSO PROMOTED TWO OTHER TOP EXECUTIVES MR BURKE SAID THE PROMOTIONS RECOGNIZE THE ABILITIES AND LONGTERM POTENTIAL OF SOME VERY GIFTED EXECUTIVES STEPHEN A WEISWASSER A SENIOR VICE PRESIDENT OF THE PARENT COMPANY AND EXECUTIVE VICE PRESIDENT OF ABC NEWS WAS NAMED PRESIDENT OF A NEW CAPITAL CITIES/ABC MULTIMEDIA GROUP DAVID WESTIN SENIOR VICE PRESIDENT OF THE CORPORATION AND ITS GENERAL COUNSEL WAS NAMED TO THE NEW POSITION OF PRESIDENT PRODUCTION OF THE ABC NETWORK GROUP ONE COMPANY EXECUTIVE WHO REQUESTED ANONYMITY SAID THE PROMOTIONS ARE A CLEAR SIGNAL FROM THE COMPANY THAT THEY FEEL THEY HAVE THE PLAYERS INTERNALLY FOR THE NEXT GENERATION OF MANAGEMENT THE EXECUTIVE ADDED THAT THE COMPANY'S BOARD ISN'T LIKELY TO DECIDE ON A SUCCESSOR TO MR BURKE UNTIL CLOSER TO HIS RETIREMENT JESSICA REIF AN ANALYST AT OPPENHEIMER & CO SAID MR IGER'S PROMOTION CERTAINLY SEEMS TO MAKE HIM THE HEIR APPARENT SHE CALLED HIM ONE OF THE MOST QUALIFIED MEMBERS OF THE INNER CIRCLE OF MANAGEMENT AT THE COMPANY MANY OF WHOM HAD BEEN THOUGHT TO BE POTENTIAL CANDIDATES FOR MR BURKE'S JOB AS WELL MR BURKE AND THOMAS MURPHY THE COMPANY'S CHAIRMAN HAVE LONG BEEN REGARDED AS AMONG THE BEST MANAGEMENT TEAMS IN THE ENTERTAINMENT INDUSTRY MR MURPHY STEPPED ASIDE AS CEO IN 1990 TO GIVE MR BURKE THE POST IN RECENT YEARS THE TWO EXECUTIVES HAVE EXAMINED A NUMBER OF OPTIONS TO EXPAND BEYOND THEIR INTERESTS IN BROADCASTING CABLE AND PUBLISHING AND HAVE EXPLORED MERGERS IN THE PAST WITH COMPANIES THAT INCLUDE THE FORMER TIME INC PARAMOUNT COMMUNICATIONS INC AND TURNER BROADCASTING SYSTEM INC THOUGH NO DEALS HAVE MATERIALIZED THE COMPANY IS STILL LOOKING IN DECEMBER MR BURKE SAID AT AN ANALYSTS MEETING THAT THE COMPANY IS INTERESTED IN MAKING AN ACQUISITION IN THE 5 BILLION TO 8 BILLION RANGE SOME ANALYSTS POINT OUT THAT IF CAPITAL CITIES DOES MERGE WITH ANOTHER COMPANY MR IGER AND OTHER EXECUTIVES THERE MAY NOT HAVE A CHANCE TO RUN THE COMBINED ENTITY THIS SEEMS DEFINITIVELY THE GROUP FROM WHICH BURKE'S SUCCESSOR WILL COME UNLESS THE COMPANY ENTERS INTO A SIGNIFICANT ACQUISITION THAT BRINGS WITH IT A NEW TOP EXECUTIVE SAYS JOHN REIDY AN ANALYST AT SMITH BARNEY HARRIS UPHAM & CO MR IGER 42 YEARS OLD JOINED ABC IN 1974 IT MERGED WITH CAPITAL CITIES IN 1986 WORKING HIS WAY UP FROM STUDIO SUPERVISOR THROUGH THE SPORTS DIVISION TO PRESIDENT OF ABC ENTERTAINMENT AS HEAD OF THE NETWORK'S PRIMETIME SCHEDULE HE WAS KNOWN FOR HIS EFFORTS TO CUT THE HIGH COSTS OF NETWORK PROGRAMMING NOT ALWAYS SUCCESSFULLY HE ALSO GAINED A REPUTATION FOR BEING WILLING TO TAKE CREATIVE RISKS ALSO WITH MIXED RESULTS HE CHAMPIONED SUCH SERIES AS THE CULT HIT TWIN PEAKS AND THE FAILED SERIES COP ROCK WHICH FEATURED SINGING DETECTIVES HE BECAME PRESIDENT OF THE ABC TELEVISION NETWORK GROUP IN JANUARY A POST HE WILL CONTINUE TO HOLD AND WAS NAMED A SENIOR VICE PRESIDENT OF THE CORPORATION IN MARCH RECENTLY MR IGER CHAMPIONED THE ONESHOT SERIES WILD PALMS WHICH WAS A FLOP HOWEVER THE NETWORK HAS HELD ON TO THE NO 2 POSITION IN PRIME TIME BEHIND CBS INC AND HAS BEEN HIGHLY SUCCESSFUL IN NEWS PROGRAMMING IN THE SECOND QUARTER ENDED JUNE 27 EARNINGS FOR THE NETWORK DECREASED AS A RESULT OF SOFT ADVERTISING DEMAND AND STAFF REDUCTIONS ONE OF MR IGER'S MORE DIFFICULT TASKS LATELY HAS BEEN TO GRAPPLE WITH ROSEANNE ARNOLD ABC'S BIGGEST PRIMETIME STAR OVER WHETHER HER HUSBAND'S SHOW THE JACKIE THOMAS SHOW WOULD BE RENEWED DESPITE ITS FAILURE IN THE RATINGS ABC DECLINED TO RENEW THE SHOW AND MRS ARNOLD HAS THREATENED TO LEAVE THE NETWORK AFTER THE NEXT SEASON OF ROSEANNE JOHN TINKER AN ANALYST AT FURMAN SELZ INC SAID MR IGER'S APPOINTMENT AND OTHER MANAGEMENT CHANGES WERE POSITIVE SIGNS FOR THE FUTURE YOU CAN'T RUN A COMPANY THIS SIZE WITHOUT KNOWING WHO IS IN CHARGE PARTICULARLY IN THIS RAPIDLY CHANGING ENVIRONMENT HE ADDED THAT WALL STREET WILL BE LOOKING FOR THE NEW MANAGEMENT TEAM'S VISION AND WILL ALSO WANT TO SEE THAT MR IGER WHO IS KNOWN MOSTLY FOR HIS PROGRAMMING SKILLS CAN PROVIDE RETURNS FOR SHAREHOLDERS MR WEISWASSER'S NEW DIVISION THE MULTIMEDIA GROUP WILL BE RESPONSIBLE FOR CENTRALIZING AND EXPANDING THE COMPANY'S ACTIVITIES IN THE INTERACTIVE PAYPERVIEW AND VIDEOONDEMAND AREAS VIDEOCASSETTE AND DISK INDUSTRIES COMPUTER TECHNOLOGIES AND HDTV AND DIGITAL TELEVISION MR WEISWASSER 52 WILL ALSO RESUME RESPONSIBILITY FOR THE COMPANY'S LEGAL AND GOVERNMENTAL AFFAIRS ALTHOUGH HE WILL APPOINT AN EXECUTIVE TO OVERSEE THE DAYTODAY ACTIVITIES OF THOSE AREAS MR WESTIN 41 WILL CONSOLIDATE THE COMPANY'S INHOUSE PRODUCTION EFFORTS WHICH ARE BECOMING INCREASINGLY IMPORTANT NOW THAT IT LOOKS AS THOUGH FEDERAL LIMITS ON NETWORK PRODUCTION AND SYNDICATION WILL BE LIFTED IN A COUPLE OF YEARS IN A STATEMENT MR BURKE SAID THE CHANGES UNDERSCORE THE IMPORTANCE OF INHOUSE PRODUCTION AND NEW MEDIA AS TARGETED AREAS OF GROWTH FOR THE COMPANY 9307270152 930727 FLOODWATERS IN NEBRASKA CLOSE NUCLEAR POWER PLANT FLOODWATERS FORCED A NEBRASKA NUCLEAR POWER PLANT TO SHUT DOWN AND RAINSOAKED COAL SLASHED ELECTRICAL OUTPUT AT ANOTHER GENERATING STATION IN THE STATE THE COOPER NUCLEAR STATION PLANT ON THE MISSOURI RIVER NEAR BROWNVILLE NEB WAS IN WHAT OFFICIALS CALLED A COLD SHUTDOWN MONDAY AFTER AREA ROADS DESIGNATED FOR EVACUATION IN CASE OF AN EMERGENCY WERE FLOODED LATE LAST WEEK FEDERAL REGULATIONS REQUIRE PRECAUTIONARY SHUTDOWNS WHEN EVACUATION ROUTES ARE BLOCKED A SPOKESMAN FOR THE NEBRASKA PUBLIC POWER DISTRICT WHICH OPERATES THE FACILITY EMPHASIZED THAT THE PLANT ITSELF WASN'T IN DANGER HE SAID FLOODWATERS WERE ABOUT THREE FEET BELOW A PROTECTIVE PLANT LEVEE YESTERDAY AND THAT THE REACTOR ITSELF IS WELL ABOVE THAT A SPOKESWOMAN FOR THE NUCLEAR REGULATORY COMMISSION IN WASHINGTON SAID PRECAUTIONARY SANDBAGGING WAS UNDER WAY THE COMMISSION SAID NONE OF THE OTHER NUCLEAR PLANTS IN THE MISSOURI OR MISSISSIPPI RIVER BASINS WAS THREATENED BY FLOODING WET COAL PILES PLUS WASHEDOUT TRACKS THAT KEPT COAL TRAINS FROM REACHING THE PLANT FORCED THE OMAHA PUBLIC POWER DISTRICT'S COALFIRED FACILITY AT NEBRASKA CITY NEB TO OPERATE AT ABOUT 15 CAPACITY 9307270151 930727 INTERNATIONAL ISRAEL GRAPPLES WITH LEBANON SYNDROME AS ATTACKS AGAINST GUERRILLAS PROCEED BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV ISRAELIS WERE TREATED TO A STRANGE SIGHT ON THEIR TELEVISION SETS SUNDAY ON ONE CHANNEL A SPECIAL PROGRAM MARKING THE 11TH ANNIVERSARY OF ISRAEL'S INVASION OF LEBANON WAS RUNNING FOOTAGE OF THAT FIGHTING ON ANOTHER CHANNEL THE EVENING NEWS WAS SHOWING ISRAELI AIR STRIKES IN LEBANON JUST HOURS EARLIER FOR THE SECOND STRAIGHT DAY ISRAELI WARPLANES AND GUNBOATS ATTACKED SUSPECTED BASES OF PROIRANIAN LEBANESE AND PALESTINIAN GUERRILLAS OPPOSED TO MIDDLE EAST PEACE TALKS THE NEW MILITARY OPERATION NAMED SETTLING ACCOUNTS COMES IN RESPONSE TO THE KILLING OF SEVEN ISRAELI SOLDIERS IN SOUTHERN LEBANON THIS MONTH AND KATYUSHA ROCKET ATTACKS ON ISRAELI BORDER SETTLEMENTS YET AS ISRAEL LAUNCHES ITS HEAVIEST ATTACK IN LEBANON SINCE THE 1982 INVASION THE EVENTS OF 11 YEARS AGO CAST A LARGE SHADOW OVER THE PRESENT THOSE EVENTS FRAME THE DEBATE OVER HOW FAR ISRAEL SHOULD GO IN THE CURRENT ACTION AND HAVE FORCED A REEXAMINATION OF WHAT WAS ISRAEL'S MOST DIVISIVE WAR DURING WHICH HUNDREDS OF ISRAELI SOLDIERS WERE KILLED THE MOST PROMINENT THING IN EVERYONE'S MINDS NOW STARTING WITH THE CITIZENS IN NORTHERN ISRAEL AND ENDING WITH THE PRIME MINISTER IS THE LEBANON WAR SAYS DEDI ZUCKER A MEMBER OF PARLIAMENT IN THE LEFTWING MERETZ PARTY WHICH IS PART OF THE ISRAELI GOVERNING COALITION WHAT HAPPENED TO US THERE THEN IS THE MOST FUNDAMENTAL ELEMENT IN THE PROCESS OF TRYING TO DECIDE WHAT TO DO NOW WHEN FOUR MINISTERS OPPOSED THE RECENT MILITARY ACTION DURING A CABINET DISCUSSION THEY BASED THEIR OBJECTIONS ON FEARS THAT ISRAEL WOULD AGAIN FIND ITSELF SINKING INTO WHAT ISRAELIS CALL THE LEBANON QUAGMIRE AFTER THE ISRAELIS BEGAN THE RECENT BUILDUP OF TROOPS ON THE LEBANESE BORDER THE ISRAELI MEDIA PUBLISHED INTERVIEWS WITH THE PARENTS OF SOLDIERS KILLED IN THE LEBANON WAR 11 YEARS AGO FOR THEIR RESPONSE AND A GOVERNMENT SPOKESMAN WAS CAREFUL TO TELL REPORTERS AFTER YESTERDAY'S BOMBARDMENTS THAT THERE IS NO INTENTION WHATSOEVER TO RETURN THE SITUATION TO WHAT IT WAS 11 YEARS AGO ISRAEL'S WAR IN LEBANON WAS UNPRECEDENTED BECAUSE IT WAS DRIVEN BY POLITICAL MOTIVATIONS AS MUCH AS SECURITY CONSIDERATIONS THE ISRAELIS WRITE ZE'EV SCHIFF AND EHUD YA'AARI IN THEIR BESTSELLING BOOK ABOUT THE WAR DIDN'T JUST WANT TO BRING SECURITY TO THE COUNTRY'S NORTHERN BORDER THEY ALSO HOPED TO CREATE A NEW POLITICAL ORDER IN LEBANON USING THEIR MILITARY MUSCLE IN THE HOPES OF BRINGING TO POWER A LEBANESE LEADER WHO WOULD SIGN A PEACE TREATY WITH ISRAEL LEBANON IS ISRAEL'S VIETNAM IT WAS ISRAEL'S LONGEST WAR THERE WERE HUGE NUMBERS OF CASUALTIES AND THERE IS A FEELING AMONG ISRAELIS THAT UNLIKE IN ANY OTHER PREVIOUS WAR THESE LIVES REALLY WERE LOST FOR NOTHING THE TRAUMA IS STILL VERY MUCH ALIVE AND IT HAS COME OUT DURING THIS CRISIS SAYS MICHAEL OREN WHO SERVED IN THE ISRAELI ARMY DURING THE LEBANON WAR AND IS NOW THE HEAD OF THE ISRAEL OFFICE FOR THE AMERICAN JEWISH COMMITTEE FOR THOSE ON THE RIGHT THE GOVERNMENT'S ASSURANCES THAT IT HAS NO PLANS TO BROADEN THE OPERATION AND ITS OFFER OF AN IMMEDIATE CEASEFIRE IF GUERRILLAS STOP FIRING ROCKETS INTO ISRAEL ARE SEEN AS A CONSEQUENCE OF ISRAELI SQUEAMISHNESS ABOUT GETTING INVOLVED IN LEBANON ISRAEL IS A MILITARY MIGHT AND IT IS GOING UP AGAINST TERRORISTS WHOSE MOST DEVELOPED WEAPON IS A STINGER THEY CAN BE STOPPED IN 24 HOURS BUT BECAUSE THE GOVERNMENT IS SCARED OF GETTING STUCK IN LEBANON AGAIN THEY WON'T SEND TROOPS INTO LEBANON WHAT THEY'RE DOING NOW IS THE MINIMUM AND THAT'S NOT GOING TO STOP THE ROCKET ATTACKS OVER THE LONG TERM SAYS ARIE STAV EDITOR OF NATIV A HAWKISH JOURNAL BUT MR ZUCKER THE MERETZ POLITICIAN SAYS ISRAEL'S HISTORY IN LEBANON PROVES THERE IS CAUSE FOR CONCERN THE PROBLEM WITH LEBANON IS THAT YOU CAN BE DRAGGED IN SO EASILY SO QUICKLY AND WITHOUT EVEN KNOWING IT YOU FIND YOURSELF STUCK THERE HE SAYS THAT IS WHAT IS SO SCARY 9307270150 930727 TOYOTA PLANNING TO TRIM 5 OF SALARIED US JOBS DETROIT TOYOTA MOTOR CORP AS PART OF ITS EFFORTS TO CUT COSTS WORLDWIDE WILL TRIM ITS SALARIED WORK FORCE IN THE US FOR THE FIRST TIME TOYOTA SAID IT WILL REDUCE ITS STAFF BY 150 WORKERS IN THE NEXT TWO YEARS THROUGH EARLY RETIREMENT AND ATTRITION THE DECLINE REPRESENTS 5 OF THE 3000 SALARIED EMPLOYEES AT TOYOTA'S US SALES ARM TOYOTA'S PLANNED WORKFORCE REDUCTIONS ARE PART OF A BROADER ROUND OF CUTBACKS BY JAPANESE AUTO MAKERS IN THE US SUCH CUTBACKS CHALLENGE THE JAPANESE TRADITION OF JOB SECURITY ANALYSTS SAY MORE CUTBACKS MAY BE LOOMING THE SURGING VALUE OF THE YEN AGAINST THE DOLLAR HAS PUT HEAVY PRESSURE ON JAPANESE AUTO MAKERS BECAUSE IT SLASHES THE PROFITABILITY OF JAPANESE VEHICLES SOLD IN THE US ANALYSTS SAY AT THE SAME TIME SALES HAVE FALTERED JAPANESE AUTO MAKERS CAPTURED 28 OF THE US CAR MARKET THROUGH THE FIRST HALF OF THIS YEAR COMPARED WITH 30 DURING THE SAME PERIOD A YEAR AGO TOYOTA SAID IT HASN'T YET DETERMINED WHERE IT WILL MAKE ITS CUTS THE AUTO MAKER DID SAY THERE ARE CERTAIN SEGMENTS OF THE COMPANY THAT WILL GROW AMID THE CUTBACKS SUCH AS TOYOTA MOTOR CREDIT CORP A SPOKESMAN SAID THE COMPANY HAS NO PLANS TO TRIM JOBS AT ITS ASSEMBLY PLANT IN GEORGETOWN KY 9307270149 930727 DIVIDEND NEWS LOUISIANAPACIFIC CORP LOUISIANAPACIFIC CORP PORTLAND ORE DECLARED A REGULAR QUARTERLY DIVIDEND OF 11 CENTS A SHARE PAYABLE AUG 31 TO HOLDERS OF RECORD AUG 13 THE LUMBER PLYWOOD AND PULP COMPANY SAID THE DIVIDEND REFLECTS A 2FOR1 STOCK SPLIT PAID IN JUNE 9307270148 930727 BOEING'S PROFIT IN 2ND QUARTER TOPS FORECASTS JET MAKER WARNS THAT SALES IN FINAL HALF OF YEAR WILL DROP ABOUT 20 BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO REPORTED BETTERTHANEXPECTED SECONDQUARTER EARNINGS BUT WARNED THAT SECONDHALF SALES WOULD BE DOWN ABOUT 20 THE SURPRISINGLY STRONG QUARTERLY EARNINGS OF 426 MILLION OR 125 A SHARE WHILE LOWER THAN THE YEAREARLIER 432 MILLION OR 127 A SHARE LARGELY RESULTED FROM A HEAVY VOLUME OF 109 JETLINER DELIVERIES THAT IS LIKELY TO MEAN LOWERTHANEXPECTED DELIVERIES IN THE SECOND HALF OF 1993 AS THE WORLDWIDE AIRLINER BUSINESS REMAINS WEAK STILL THE RELATIVELY GOOD NEWS HELPED BOOST THE CONFIDENCE OF LONGTERM INVESTORS AND ANALYSTS WHO HAVE BEEN BETTING INCREASINGLY THAT BOEING WILL STAY PROFITABLE DESPITE DEEP PRODUCTION CUTS AND THAT THE COMPANY WILL BOUNCE BACK FROM THE HARD TIMES IN A FEW YEARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BOEING GAINED 875 CENTS TO CLOSE AT 38625 EARNINGS FOR THE SIX MONTHS WERE 751 MILLION OR 221 A SHARE AGAINST A LOSS OF 150 MILLION OR 44 CENTS A SHARE IN 1992 INCLUDING THE EFFECT OF AN ACCOUNTING CHANGE FOR RETIREE HEALTH CARE EXCLUDING THE CHANGE FIRSTHALF 1992 EARNINGS WERE 852 MILLION OR 250 A SHARE THE SEATTLE COMPANY BLAMED THE LOWER SECONDQUARTER 1993 EARNINGS ON DECLINING SALES OF BOTH ITS COMMERCIAL JETS AND ITS DEFENSE AND SPACE PRODUCTS AND CHAIRMAN FRANK SHRONTZ WARNED IN A STATEMENT THAT THE LOWER SALES TREND WILL CONTINUE THROUGH 1994 A WORLDWIDE ECONOMIC SLOWDOWN CONTINUES TO DAMP THE AIRLINER BUSINESS HE SAID AND CUSTOMER REQUESTS TO RESCHEDULE EXISTING ORDERS CONTINUE TO BE NEGOTIATED MR SHRONTZ ALSO CAUTIONED THAT RESEARCHANDDEVELOPMENT EXPENSES FOR NEW MODELS OF AIRLINERS WILL REMAIN HIGH AND THE COMPANY WILL HAVE TO CONTINUE TO SHOVEL EVERLARGER AMOUNTS INTO CUSTOMER FINANCING TO KEEP OLD ORDERS AND WIN NEW ONES THE COMPANY SAID COMMITMENTS TO CUSTOMER FINANCING SUCH AS ITS GUARANTEES TO STAND BEHIND LOANS TO AIRLINES FOR THE JET PURCHASES JUMPED TO 34 BILLION ON JUNE 30 FROM 23 BILLION AT THE END OF LAST YEAR BUT THE EXECUTIVE ALSO SAID THAT PROFIT LEVELS IN JETLINER PROGRAMS ARE EXPECTED TO BE SUBSTANTIALLY MAINTAINED THROUGH COSTCUTTING AND EFFICIENCY GAINS AS THE COMPANY MARCHES TOWARD A 45 PRODUCTION CUT THROUGH MID1994 PAUL NISBET AN LONGTIME PROPONENT OF BOEING STOCK AND AN ANALYST WITH JSA RESEARCH INC OF NEWPORT RI SAID THE LATEST RETURNS ARE NOTHING TO POUND THE TABLE ABOUT SINCE THEY ONLY REJUGGLE THE EARNINGS EXPECTED FROM JET DELIVERIES DURING THE YEAR BUT HE CONTINUES TO BE OPTIMISTIC FOR THE LONG TERM CITING THE COMPANY'S ABILITY TO DATE TO MAINTAIN A GROSSOPERATING PROFIT MARGIN OF ABOUT 73 HE ALSO SAID MR SHRONTZ'S OUTLOOK FOR CONTINUED JETLINER PROFITS IS ESPECIALLY GOOD NEWS AND NO MEAN FEAT GIVEN THE DOWNTURN IN RATES OF PRODUCTION BOEING SAID ITS FIRM BACKLOG OF ORDERS TO AIRLINES AND TO FOREIGN GOVERNMENTS DROPPED TO 763 BILLION A DECREASE OF 76 SINCE THE END OF 1992 ITS BACKLOG OF ORDERS FOR THE US GOVERNMENT SLIPPED BY 15 TO 45 BILLION DURING THE SAME PERIOD SEPARATELY BOEING AND ROCKWELL INTERNATIONAL INC ANNOUNCED THAT THEY WOULD TEAM UP TO PURSUE AN AIR FORCE CONTRACT TO PERFORM ENGINEERING AND MANUFACTURING DEVELOPMENT WORK ON A NEW SMART BOMB CALLED JOINT DIRECT ATTACK MUNITION OR JDAM TWO TEAMS WILL BE AWARDED SEPARATE FIRSTPHASE CONTRACTS VALUED AT ABOUT 50 MILLION EACH LATER THIS YEAR A FINAL TEAM WILL BE SELECTED ABOUT 18 MONTHS LATER FOR DEVELOPMENT AND PRODUCTION CONTRACTS VALUED AT 600 MILLION OR MORE LIGHTER VERSIONS OF THE BOMB ARE EXPECTED TO BE DROPPED FROM THE SERVICE'S NEXTGENERATION F22 FIGHTER WITH HEAVIER VERSIONS DROPPED BY B2 AND B1 BOMBERS 9307270147 930727 MARKETING & MEDIA NEWS CORP PURCHASES MAJORITY STAKE IN STAR TV OF ASIA FOR 525 MILLION BY MARCUS W BRAUCHLI AND S KARENE WITCHER STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG SNATCHING THE PLUM OF ASIA'S FASTGROWING SATELLITE TELEVISION INDUSTRY RUPERT MURDOCH'S NEWS CORP SAID IT BOUGHT 636 OF STAR TV FOR 525 MILLION IN CASH AND STOCK THE SALE OF THE STAKE IN HONG KONG'S HUTCHVISION LTD STAR'S PARENT WAS HUGELY PROFITABLE FOR FOUNDERS HUTCHISON WHAMPOA LTD AND THE FAMILY OF BILLIONAIRE LI KASHING JOINTLY HUTCHISON WHAMPOA AND THE LI FAMILY HAVE INVESTED ABOUT 110 MILLION IN THE TWOYEAROLD NETWORK THE FIRST TELEVISION NETWORK THAT SERVES ASIA AS A REGION ITS FIVE CHANNELS BBC NEWS PRIME SPORTS MTV AND ENGLISHLANGUAGE AND CHINESELANGUAGE ENTERTAINMENT CAN REACH 45 MILLION PEOPLE IN 38 ASIAN AND MIDDLE EASTERN COUNTRIES THAT COMBINED ACCOUNT FOR TWOTHIRDS OF THE WORLD'S POPULATION NEWS CORP PLANS TO ISSUE NEW ORDINARY SHARES AS PARTIAL PAYMENT FOR THE STAKE AFTER THAT ISSUE THE LI FAMILY AND HUTCHISON WHAMPOA TOGETHER WILL HAVE 27 OF NEWS CORP THEY ALSO WILL RETAIN 364 OF HUTCHVISION THE TRANSACTION WHICH VALUES ALL OF STAR AT 825 MILLION WILL COMPLETE THE GLOBAL ARC OF RUPERT MURDOCH'S TELEVISION EMPIRE IN NORTH AMERICA NEWS CORP OWNS FOX BROADCASTING CORP IN EUROPE ITS HALFOWNED BRITISH SKY BROADCASTING LTD UNIT IS THE PREEMINENT SATELLITE SERVICE NEWS CORP ALSO HAS VAST GLOBAL PUBLISHING INTERESTS BUT SOME ANALYSTS WARN THAT THE TRANSACTION IS LIKELY TO LOWER NEWS CORP'S PERSHARE EARNINGS OVER THE NEXT YEAR OR SO AND COULD WEIGH ON THE SHARE PRICE AT LEAST IN THE SHORT TERM THIS IS THE BIG DEAL WE'VE BEEN WAITING FOR NEWS CORP TO DO SAID TERRY POVEY WHO TRACKS NEWS CORP FOR ANZ MCCAUGHAN SECURITIES LTD IN LONDON MR POVEY ESTIMATES THAT BASED ON THE CURRENT LOSSES STAR IS INCURRING THE ACQUISITION IS LIKELY TO LOWER NEWS CORP'S PERSHARE EARNINGS IN THE CURRENT FISCAL YEAR ENDING JUNE 30 BY ABOUT 5 TO 63 AUSTRALIAN CENTS 43 US CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY NEWS CORP'S AMERICAN DEPOSITARY RECEIPTS ROSE 875 CENTS TO 45 PROFITABILITY ASIDE STAR HAS PROVED TO BE A CULTURAL PHENOMENON FOR ASIA ITS PROGRAMS HAVE TRANSFORMED THE WAY PEOPLE IN THE REGION SEE THEMSELVES BE IT IN CRACKING OPEN TIGHT GOVERNMENT CONTROLS ON INFORMATION OR IN LIBERATING TEENAGERS IN WHAT THEY WEAR ANALYSTS SAID PROGRAMMING IS KEY TO NEWS CORP'S PURCHASE OF THE STAR STAKE KIRK SWEENEY DIRECTOR OF SOUTHEAST ASIAN RESEARCH FOR LEHMAN BROTHERS SAID HE BELIEVES NEWS CORP IS USING THE STAR DEAL TO LOCK UP PROGRAMMING STAR HAS MEMORANDUMS OF UNDERSTANDING WITH FIVE HOLLYWOOD STUDIOS AND THREE INTERNATIONAL NEWS PROGRAMMERS TO SUPPLY PROGRAMMING ON A SERIES OF PAY CHANNELS IT HOPES TO LAUNCH AS EARLY AS OCTOBER ALSO THE ASIAN NETWORK REPORTEDLY HAS SIGNED A PACT WITH HONG KONG'S GOLDEN HARVEST GROUP TO SUPPLY PROGRAMMING FOR A NEW CHINESELANGUAGE CHANNEL WITH TAIWAN ALREADY STAR'S RICHEST MARKET AND SWIFTLY DEVELOPING CHINA ITS LARGEST STAR IS BANKING ON A PAY CHINESE CHANNEL TO WIN AUDIENCES AND ADVERTISERS ALIKE THE REAL SLEEPER HERE IS THAT STAR HAS BEEN AMASSING CHINESE MOVIES MR SWEENEY SAYS ARNOLD TUCKER A STAR SPOKESMAN SAID HUTCHVISION LTD WOULD PAY 64 MILLION IN A SEPARATE TRANSACTION TO ACQUIRE THE ISSUED SHARES AND SHAREHOLDER LOANS IN ITS PROGRAMMING AFFILIATE MEDIA ASSETS LTD MEDIA ASSETS WAS SET UP TO ACQUIRE PROGRAMMING RIGHTS FOR STAR AND THE SEPARATE DEAL WOULD ENSURE THAT THOSE ARE TRANSFERRED INTO STAR ONCE NEWS CORP GAINS CONTROL OF THE NETWORK AS HUTCHVISION'S 636 SHAREHOLDER NEWS CORP WILL HAVE TO PUT UP 407 MILLION TO COMPLETE THAT TRANSACTION IN ADDITION TO THE 525 MILLION PAID FOR THE HUTCHVISION STAKE 9307270146 930727 LEISURE & ARTS ON SPORTS UNSUNG MERTEN MASTERS CROOKED STICK BY FREDERICK C KLEIN CARMEL IND SHOWBIZ FOLKS SPONSOR GOLF TOURNAMENTS BECAUSE A THEY LOVE THE GAME AND B THEY LIKE TO SEE THEIR NAMES IN THE SPORTS PAGES SOMETIMES THEY GET AN UNEXPECTED BOOST IN CATEGORY B SUCH IS THE GOOD FORTUNE OF JAMIE FARR WHOSE MAIN CAREER CREDIT WAS HIS ROLE AS THE GOOFY CROSSDRESSER AND TOLEDO MUD HENS FAN IN THE OLD TV SERIES MASH THE JAMIE FARRTOLEDO CLASSIC NAMED FOR HIM IS A FIXTURE ON THE WOMEN'S PROFESSIONAL GOLF TOUR EARNING FOR HIM A FEW DAYS OF RENEWED ALBEIT MODEST NOTICE BUT SUNDAY'S US WOMEN'S OPEN THE MOST PRESTIGIOUS LINKS EVENT FOR WOMEN WENT TO LAURI MERTEN AN 11SEASON PLUGGER ON THE LPGA CIRCUIT WHOSE LAST TOURNAMENT WIN WAY BACK IN 1984 WAS AT THE YES JAMIE FARRTOLEDO CLASSIC AND SHE CHERISHES THE MEMORY EVERY YEAR I GO BACK THERE AND JAMIE SAYS HI HOW ARE YOU' GUSHED THE 33YEAROLD MERTEN IT'S GREAT WHEN A CELEBRITY REMEMBERS YOU LIKE THAT AFTER SUNDAY THOUGH MERTEN'S CELEBRITY SHOULD AT LEAST RIVAL THAT OF THE ACTOR SHE POSTED FOUR SUBPAR ROUNDS AT THE CROOKED STICK GOLF CLUB IN THIS SUBURB OF INDIANAPOLIS AND HER LASTROUND 68 THE LOW SCORE ON THE ONLY DAY THE WIND REALLY KICKED UP DURING THE VERY HOT VERY STICKY PROCEEDINGS BROUGHT HER FROM EIGHTH PLACE FIVE STROKES BACK TO THE TITLE LEFT IN HER WAKE WAS A LARGE INTERNATIONAL AND BETTERKNOWN CREW OF OTHER CONTENDERS INCLUDING THE TALL SWEDE HELEN ALFREDSSON WHO WAS THE LEADER AFTER 54 HOLES AND PAT BRADLEY PATTY SHEEHAN AND NANCY LOPEZ LPGA HALL OF FAMERS ALL MERTEN'S 18HOLE CARDS OF 71 71 70 AND 68 ADDED UP TO 280 THAT WAS EIGHT STROKES UNDER CROOKED STICK'S 72HOLE PAR AND ONE FEWER THAN RUNNERSUP ALFREDSSON AND DONNA ANDREWS MERTEN A SLIM SMALLISH BLUEEYED BRUNETTE WHO LIVES IN GREENSVILLE DEL DIDN'T TAKE THE LEAD UNTIL THE 400YARD PARFOUR 72ND HOLE WHEN SHE HIT A GORGEOUS SIXIRON TO FOUR FEET OF THE CUP AND HOLED HER PUTT FOR A BIRDIE ANDREWS AND ALFREDSSON PLAYING BEHIND MERTEN EACH HAD CHANCES TO TIE ON 18 SUNDAY BUT FAILED ANDREWS A 25YEAROLD FROM PINEHURST NC WHO'S NEVER WON AN LPGA TOUR EVENT BUT PLACED THIRD IN LAST YEAR'S OPEN HAD A 30FOOT LASTHOLE BIRDIE PUTT RUN BY THE LEFT OF THE CUP AND ALFREDSSON LEFT A 15FOOTER JUST A FEW INCHES TO THE RIGHT MERTEN WATCHED BOTH EFFORTS FROM GREENSIDE NERVOUSLY BUT BUOYED BY THE THOUGHT HER TURN FOR GLORY WAS OVERDUE I WAS THINKING MY TIME HAD FINALLY COME SAID SHE CLEARLY THE LESSON OF THE TRIUMPH OF THE UNSUNG VETERAN WHO SINCE FINISHING 13TH ON THE TOUR MONEY LIST IN 1984 HAS NEVER ENDED A YEAR HIGHER THAN 43RD WAS ONE OF PERSEVERANCE HER NINEYEAR VICTORY DROUGHT HAD CAUSED HER TO CONSIDER QUITTING THE GAME MORE THAN ONCE SHE CONFESSED TWO YEARS AGO WHEN I FIRST MET MIKE MCGETRICK MY TEACHER HE ASKED ME IF I THOUGHT I COULD STILL WIN SHE SAID I HAD TO TELL HIM I DIDN'T KNOW ANYMORE HE GAVE ME A LIST OF FACETS OF THE GAME AND ASKED ME TO RANK MYSELF ON THEM ON A SCALE OF 1 TO 10 I DIDN'T GIVE MYSELF MORE THAN A 2' ON ANY OF THEM I WAS SO DEPRESSED HE TOLD ME TO GO HOME UNTIL I FELT BETTER BUT RETURN SHE DID WORKING MAINLY ON SETTING UP FOR SHOTS DESPITE A LEFT LEG THAT SHE SAYS IS 1 3/16INCHES SHORTER THAN HER RIGHT ONE ALSO COMING IN FOR ATTENTION WAS PUTTING ESPECIALLY THE THREE FOUR AND FIVEFOOTERS THAT OFTEN SPELL THE DIFFERENCE BETWEEN STEAK AND HAMBURGER MERTEN BEGAN TO SEE RESULTS THIS YEAR A FIFTHPLACE FINISH AT A TOURNEY IN LAS VEGAS A THIRD IN THE MCDONALD'S CHAMPIONSHIP AND A SECOND BEHIND SHEEHAN AT THE MAZDA LPGA CHAMPIONSHIP ONE OF HER SPORT'S FOUR MAJORS THAT SECOND WAS LIKE A WIN SHE SAID OF THE LAST EVENT IT GAVE ME CONFIDENCE MERTEN SAID HER SHORT PUTTING WHICH KEPT HER FREE OF THREEPUTT GREENS THE ENTIRE TOURNEY WAS HER KEY TO VICTORY BUT FOR THE FIRST THREE DAYS OTHER PLAYERS OCCUPIED THE SPOTLIGHT ON THE COURSE MADE FAMOUS BY JOHN DALY'S SMASHING TRIUMPH AT THE 1991 PGA CHAMPIONSHIP THE US GOLF ASSOCIATION WHICH STAGES THE OPEN SET UP CROOKED STICK AT 6311 YARDS FOR THE WOMEN SOME 900 YARDS FEWER THAN WHEN DALY SOARED BUT BIG HITTERS SUCH AS 5FOOT11 MICHELLE MCGANN AND ALFREDSSON LED THE EARLY ROUNDS MCGANN'S HOPES ENDED WITH A 78 ON SATURDAY LEAVING ALFREDSSON THE WINSOME LEADER OF THE LPGA'S SUDDENLY FORMIDABLE FOREIGN CONTINGENT WITH A TWOSTROKE LEAD HIROMI KOBAYASHI OF JAPAN WAS SECOND STARTING THE LAST ROUND BRADLEY AND ANDREWS WERE TIED FOR THIRD AND LOPEZ WAS ONE OF THREE PLAYERS IN FIFTH BUT ON SUNDAY THE TOP SEVEN EITHER FALTERED OR MARCHED IN PLACE BRADLEY WHO'S WON SIX MAJORS BOWED OUT WITH A DOUBLEBOGEY SIX ON THE TOUGH 407YARD 16TH HOLE THAT LEFT HER MUTTERING ABOUT A PIN PLACEMENT NO MORE THAN 25 FEET FROM A LOOMING WATER HAZARD ANDREWS WHOSE STOCKINTRADE IS PUTTING MISSED TWO THREEFOOTERS FOR BOGEYS IN AN OTHERWISE BLAMELESS ROUND KOBAYASHI MADE NO BIRDIES ENROUTE TO A 74 AND ALFREDSSON WHOSE GENERAL DISCOMFORT WAS ILLUSTRATED BY HER REPEATEDLY BACKING AWAY FROM SHOTS AS SHE PREPARED TO HIT LET A POOR CHIP CAUSE A FATAL BOGEY AT 16 AND THE SAME SCORE MERTEN MEANTIME SCRAMBLED THROUGH THE FIRST SEVEN HOLES AT PAR THANKS TO THE SORT OF PARSAVING PUTTS THAT SHE SAYS HAVE EARNED HER A REP AS A TOUR GARBAGE QUEEN THEN SHE SANK A 60FOOT BIRDIE PUTT ON THE PARFOUR EIGHTH THAT GOT ME GOING FOUR MORE BIRDIES TO A SINGLE BOGEY FOLLOWED BESIDES THE 60FOOTER TWO OF MERTEN'S SHOTS STOOD OUT ONE WAS A 70FOOT CHIP SHOT SHE HOLED FOR A BIRDIE THREE AT 16 ONE OF JUST TWO BIRDIES RECORDED ON THAT BRUTAL HOLE ALL DAY THE OTHER WAS THE RADAR SIXIRON THAT SET UP HER DECISIVE LASTHOLE BIRD I HIT IT THE SIX IRON GREAT BUT I WAS STILL SHAKY AND AS I WALKED TO THE HOLE I PRAYED THAT MY BALL'D BE AN INCH AWAY SHE SMILED WHEN I SAW I HAD A FOURFOOTER ALL KINDS OF THINGS WENT THROUGH MY HEAD LIKE THE PUTT PATTY SHEEHAN SUNK TO BEAT ME AT THE LPGA OR THE LITTLE ONE SCOTT HOCH MISSED IN THE MASTERS PLAYOFF A FEW YEARS AGO BUT WHEN I SAW IT WAS STRAIGHT I THOUGHT OH HECK JUST HIT IT IN THE HOLE' AND I DID 9307270145 930727 INTERNATIONAL JAPAN'S ECONOMY AFTER IMPROVING APPARENTLY WEAKENED IN LATEST QUARTER BY JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S LEADERS WHO HAVE INSISTED FOR MONTHS THAT THEIR AILING ECONOMY HAS HIT BOTTOM MAY WANT TO STRAP ON THEIR SEAT BELTS ONE MORE TIME A SPATE OF RECENT INDICATORS SUGGESTS JAPAN'S ECONOMY THE WORLD'S SECOND LARGEST WEAKENED IN THE APRILTHROUGHJUNE QUARTER AFTER SHOWING IMPROVEMENT IN THE PREVIOUS THREE MONTHS SOME OF THE RECENT REPORTS AUTO PRODUCTION IN JUNE DROPPED TO ITS LOWEST LEVEL FOR THAT MONTH IN 11 YEARS SALES AT MAJOR DEPARTMENT STORES IN JUNE DROPPED FOR THE 16TH CONSECUTIVE MONTH THE BANK OF JAPAN SAID MONEYSUPPLY GROWTH REMAINS SLUGGISH AND A BASKET OF LEADING ECONOMIC INDICATORS FELL BELOW THE SOCALLED BOOMORBUST LINE IN MAY FOR THE FIRST TIME IN FIVE MONTHS JAPAN'S ECONOMIC PLANNING AGENCY SAID THE LEADINGINDICATORS INDEX FELL TO 30 IN MAY FROM A REVISED 636 IN APRIL THE AGENCY SAYS A FIGURE ABOVE 50 SUGGESTS ECONOMIC EXPANSION WHILE ONE BELOW 50 INDICATES CONTRACTION THE AGENCY WHICH FOR THE PAST YEAR HAS BEEN CONSISTENTLY OVEROPTIMISTIC IN ITS FORECASTS SAID TEMPORARY FACTORS CAUSED THE INDEX TO TURN DOWN IT SAID IT STILL BELIEVED JAPAN'S ECONOMY WILL GROW AT AN ANNUALIZED RATE OF 33 IN THE FISCAL YEAR THAT BEGAN APRIL 1 MANY PRIVATE ECONOMISTS HOWEVER SAID THE FIGURE WILL BE CLOSER TO 1 TO 2 FOR THE YEAR THE GOVERNMENT'S PROJECTION IS FARCICAL THEY DON'T BELIEVE IT THEMSELVES SAID GEOFFREY BARKER CHIEF ECONOMIST AT BARING SECURITIES JAPAN LTD I THINK 15 IS ERRING ON THE SIDE OF BULLISHNESS BUSINESS EXECUTIVES AND OTHERS HAVE WARNED FOR WEEKS THAT THE ECONOMY'S PERFORMANCE IN THE JANUARYTHROUGHMARCH QUARTER WHEN THE GROSS NATIONAL PRODUCT JUMPED AT A 23 ANNUALIZED RATE WAS AN ANOMALY GOVERNMENT SPENDING BOOSTED THE NUMBER AS DID A PICKUP IN BUYING BY CONSUMERS BUT THE CONSUMER SPENDING WASN'T A HARBINGER OF BETTER TIMES AHEAD INSTEAD DEEP AND DESPERATE DISCOUNTING BROUGHT BUYERS INTO STORES AND ROBBED SALES FROM APRIL AND MAY NLI RESEARCH INSTITUTE AN ARM OF NIPPON LIFE INSURANCE CO ESTIMATED THAT JAPAN'S ECONOMY ACTUALLY CONTRACTED AT AN ANNUALIZED RATE OF 1 IN THE APRILTHROUGHJUNE QUARTER FALLING AUTO AND RETAIL SALES AS WELL AS CUTBACKS IN CAPITAL SPENDING CONTRIBUTED TO THE SLUGGISH QUARTER PAUL SUMMERVILLE AN ECONOMIST WITH LEHMAN BROTHERS JAPAN INC ALSO BELIEVED THE ECONOMY CONTRACTED AT AN ANNUALIZED 1 IN THE APRILTOJUNE PERIOD IT JUST CONFIRMS THAT THERE'S NO PROSPECT FOR A RECOVERY IN JAPAN THAT'S MEANINGFUL UNTIL LATE NEXT YEAR HE SAID IT'S LIKE A LOWGRADE FEVER YOU GET OUT OF BED YOU FEEL BAD YOU GET BACK INTO BED MR SUMMERVILLE SEES GNP GROWTH OF LESS THAN 1 FOR THE YEAR THAT BEGAN APRIL 1 TOMOKO FUJII AN ECONOMIST AT SALOMON BROTHERS INC IN TOKYO IS MORE BULLISH ESTIMATING GNP GROWTH OF 14 ON AN ANNUALIZED BASIS IN THE FISCAL FIRST QUARTER AND 26 FOR THE FULL FISCAL YEAR THE REASON WE HAVE REFLECTED A TAX CUT OF THREE TRILLION YEN 281 BILLION OR 1 OF DISPOSABLE INCOME SHE SAID WHICH WOULD JUMPSTART CONSUMER SPENDING WAITING FOR A TAX CUT IN JAPAN HOWEVER HAS BEEN LIKE WAITING FOR GODOT ECONOMISTS AND POLITICIANS HAVE BEEN SAYING FOR MONTHS THAT GOVERNMENT SPENDING ALONE WON'T PULL JAPAN OUT OF THE DOLDRUMS THAT THE COUNTRY NEEDS A TAX CUT TO BOLSTER CONSUMER CONFIDENCE BUT THE MINISTRY OF FINANCE ALREADY WRESTLING WITH A TAXREVENUE SHORTFALL HAS BEEN COOL TO THE IDEA THE POLITICAL CALCULATION HERE HAS BEEN THAT THE MINISTRY MIGHT GO ALONG WITH A CUT IN TAXES IF POLITICIANS AGREE TO RAISE TAXES NEXT YEAR TO MAKE UP FOR THE DROP IN TAX REVENUE THIS YEAR BUPOLITICAL INSTABILITY IN JAPAN AT THE MOMENT THE LIBERAL DEMOCRATIC PARTY HAS LOST ITS MAJORITY IN PARLIAMENT FOR THE FIRST TIME IN 38 YEARS MAY HAVE KNOCKED OUT OF ACTION MANY OF THE POLITICIANS WHO COULD HAVE BROKERED SO COMPLEX A DEAL MS FUJII BELIEVES THE INSTABILITY WILL ACTUALLY WORK IN FAVOR OF EXPEDITING A CUT IN TAXES WITH POWER UP FOR GRABS IN JAPAN SHE REASONED POLITICIANS WILL BE RACING TO WIN PUBLIC SUPPORT AND WHAT BETTER WAY TO DO THAT THAN TO CUT THE VOTERS' TAX BILL 9307270144 930727 ECONOMY LAST MONTH'S SALES OF EXISTING HOMES INCREASED BY 19 BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF PREVIOUSLY OWNED HOMES ROSE 19 IN JUNE AS THE NATIONAL HOUSING RECOVERY MAINTAINED A SLOW BUT STEADY MOMENTUM FUELED BY LOW INTEREST RATES AND PENTUP CONSUMER DEMAND EXISTINGHOME SALES ROSE TO 3690000 ON A SEASONALLY ADJUSTED ANNUALIZED BASIS FROM A REVISED PACE OF 3620000 IN MAY ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS REGIONAL PERFORMANCE WAS MIXED WITH THE WEST AND MIDWEST POSTING SLIGHT DECREASES IN SALES WHILE THE SOUTH GAINED MODESTLY AND THE LONGSUFFERING NORTHEAST SNAPPED BACK WITH A 14 GAIN THE RESULTS COME AFTER A DISAPPOINTING REPORT BY THE COMMERCE DEPARTMENT SHOWING HOUSING STARTS FLAT IN JUNE FROM THE PREVIOUS MONTH THE NEWHOME MARKET ISN'T PERFORMING AS WELL AS THE ONE FOR EXISTING HOMES ANALYSTS SAY BECAUSE SOME BUILDERS STILL HAVE A TOUGH TIME GETTING CREDIT TO BUILD AND BAD WEATHER EARLIER THIS YEAR DELAYED CONSTRUCTION THE FLOODING IN THE MIDWEST WON'T HELP STARTS THIS MONTH AND COULD CHANNEL MORE DEMAND INTO THE RESALE MARKET IF YOU HAVE SOFTNESS ON NEW HOMES THAT PUTS ADDITIONAL PRESSURE FOR CONSUMERS TO BUY EXISTING HOMES ADDED DARYL JESPERSON EXECUTIVE VICE PRESIDENT OF RE/MAX INTERNATIONAL INC A NATIONAL BROKER BASED IN ENGLEWOOD COLO THOUGH SLOWED FROM MAY'S INCREASE OF 49 THE JUNE RESALE NUMBERS MARK THE THIRD CONSECUTIVE MONTH OF GAINS FOR NATIONWIDE RESALES FOLLOWING THREE CONSECUTIVE DOWN MONTHS THAT WERE ATTRIBUTABLE TO BAD WEATHER COMPARED WITH A YEAR AGO THE JUNE RESALES WERE UP A VIBRANT 111 WITH DOUBLEDIGIT GROWTH IN THE SOUTH AND MIDWEST THE COMBINATION OF LOW INTEREST RATES AFFORDABLE PRICES AND PENTUP BUYING DEMAND THROUGHOUT THE COUNTRY IS PRODUCING THE STRONGEST HOUSING MARKET IN FIVE YEARS THOUGH IT HAS TICKED UP IN RECENT DAYS ON RENEWED INFLATIONARY FEARS THE 30YEAR FIXEDRATE MORTGAGE HAS FALLEN MORE THAN A PERCENTAGE POINT FROM LAST YEAR TO 720 ACCORDING TO HSH ASSOCIATES INC A BUTLER NJ MORTGAGEPUBLISHING FIRM AS RATES HAVE FALLEN ALMOST EVERY WEEK SINCE EARLY JUNE AN INDEX OF MORTGAGELOAN APPLICATIONS BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA HAS CLIMBED TO 70 ABOVE NORMAL VOLUME THE HIGHEST SINCE A MINIBOOM IN ACTIVITY DURING FEBRUARY SINCE IT CAN TAKE AS LONG AS TWO MONTHS TO CLOSE A HOME PURCHASE THE STRONG MORTGAGE VOLUME PORTENDS FUTURE SALES INCREASES THE OUTLOOK IS AS BRIGHT AS IT'S BEEN FOR THE PAST FIVE YEARS SAID PAUL GETMAN ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES INC A CONSULTING FIRM BASED IN WEST CHESTER PA HOUSING ANALYSTS ESTIMATE THAT EXISTINGHOME SALES FOR 1993 COULD APPROACH 38 MILLION THE HIGHEST RESALE RATE SINCE 1979 CLEARLY THIS ACTIVITY SHOWS WE ARE WELL ON OUR WAY TO A SOLID RECOVERY SAID WILLIAM S CHEE PRESIDENT OF THE WASHINGTONBASED NATIONAL ASSOCIATION OF REALTORS THE HOUSING RECOVERY IS STILL RESTRAINED BY SLOW GROWTH IN JOBS AND PERSONAL INCOME AS WELL AS BY THE FACT THAT CALIFORNIA WHICH NORMALLY ACCOUNTS FOR ABOUT A FIFTH OF US HOUSING SALES IS STILL SLUGGISH WHEN YOU CONSIDER THAT CALIFORNIA IS BIGGER IN POPULATION THAN CANADA THAT PUTS IT IN PERSPECTIVE SAID RE/MAX'S MR JESPERSON CALIFORNIA IS STILL LOSING JOBS AND THAT KEEPS SALES AND PRICES DOWN RESALES IN THE GOLDEN STATE FELL 31 IN JUNE FROM THE PREVIOUS MONTH CONTINUING A YEARLONG DECLINE THAT WAS INTERRUPTED ONLY IN MAY MANY ANALYSTS BELIEVE THE CALIFORNIA MARKET WILL REMAIN DEPRESSED FOR AT LEAST THE NEXT YEAR THOUGH THE ENTRYLEVEL END OF THE MARKET IS HOLDING UP WELL BECAUSE FAMILIES THAT PREVIOUSLY COULDN'T AFFORD A HOME ARE ABLE TO BUY DUE TO LOW INTEREST RATES AND REDUCED PRICES THE OVERALL NORTHEAST STILL SUFFERS FROM STAGNATED JOB GROWTH BUT RESALES SOARED IN JUNE ON THE STRENGTH OF THE LOW RATES AND PENTUP DEMAND 9307270143 930727 SUPERMARKETS TO STOCK SUPPLIES FROM XEROX FOR OFFICES AT HOME STAMFORD CONN XEROX CORP IS MAKING A PUSH INTO THE BURGEONING HOMEOFFICE SUPPLIES MARKET WITH PLANS TO SELL EVERYTHING FROM COPIER PAPER TO COMPUTER DISKS IN GROCERY SUPERMARKETS XEROX HOPES ITS NEW TACK WILL MOVE IT FROM A BULK BUSINESSOFFICE COPY MACHINE SUPPLIER THAT MARKETS THROUGH 800 PHONE NUMBERS AND ACCOUNT SALESMEN TO A MORE BROADBASED CONSUMER CONCERN TRYING TO ESTABLISH ITSELF AS THE DOCUMENT COMPANY XEROX SAYS IT'S FOLLOWING THROUGH ON RESEARCH OF SMALL BUSINESSES SHOWING THAT IN 1993 39 MILLION OR TWO OUT OF EVERY FIVE AMERICAN HOUSEHOLDS MAINTAIN HOME OFFICES THEIR NUMBER IS EXPECTED TO GROW TO 46 MILLION HOUSEHOLDS AND TOTAL SPENDING OF OVER 27 BILLION BY 1995 ACCORDINGLY XEROX IS GOING TO PACKAGE ITS ARRAY OF ENVELOPES COPIER FACSIMILE AND COMPUTER PAPER AS WELL AS COMPUTER DISKS IN SUITABLE QUANTITIES THE COMPANY BELIEVES HOMEOFFICE NEEDS FALL SOMEWHERE BETWEEN ESTABLISHED BUSINESSES WHICH NEED ENVELOPES IN PACKAGES OF 500 FOR EXAMPLE AND AVERAGE CONSUMERS WHO BUY PACKAGES OF 50 ENVELOPES XEROX PLANS SPECIAL XEROX DOCUMENT CENTERS A MULTISHELF SECTION ON ONE SIDE OF A STORE AISLE IN ADDITION TO ITS OWN PRODUCTS XEROX WILL SELL THOSE MANUFACTURED BY OTHER COMPANIES BUT SOLD UNDER THE XEROX NAME SUCH AS SELFSTICK NOTES AND BINDERS THE CENTERS WILL BE MODELED AFTER THE SUCCESSFUL L'EGGS HOSIERY SECTIONS IN SUPERMARKETS WEGMANS FOOD MARKETS A 47STORE CHAIN IN WESTERN NEW YORK WILL BE THE FIRST SUPERMARKET OPERATION TO SELL THE XEROX SUPPLIES XEROX SAID IT CHOSE SUPERMARKETS BECAUSE OF THEIR LATE HOURS AND OTHER CONVENIENCES FOR SHOPPERS THIS STRATEGY HAS MASSMARKET OPPORTUNITIES SAYS RAYMOND BOGGS OF BIS STRATEGIC DECISIONS A NORWELL MASS MARKET RESEARCH AND CONSULTING FIRM 9307270142 930727 REAL ESTATE BY JIM CARLTON IMBALANCES BETWEEN HOUSING PRICES AND INCOMES ARE NARROWING IN EXPENSIVE MARKETS BUT WIDENING IN SOME CHEAPER ONES THE COSTLY COASTAL MARKETS HAVE BECOME MORE AFFORDABLE BECAUSE PRICES HAVE FALLEN AS MUCH AS ONETHIRD IN THE PAST SIX YEARS IN SOME LOWERPRICED CITIES HOWEVER INCLUDING LAS VEGAS MADISON WIS AND PORTLAND ORE STRONG DEMAND HAS PRICES OUTSTRIPPING INCOME GROWTH LOCAL MARKET MONITOR A NEWSLETTER IN WELLESLEY MASS COMPARES HOUSING PRICES IN MARKETS AROUND THE COUNTRY WITH LOCAL INCOME INDEXES TWO YEARS AGO PRICES IN NEW YORK CITY WERE 27 HIGHER THAN THE LOCAL INCOME INDEX IN BOSTON 24 HIGHER AND IN LOS ANGELES 23 HIGHER THE IMBALANCES HAVE SHRUNK THIS YEAR TO 23 IN NEW YORK 19 IN BOSTON AND 17 IN LOS ANGELES BUT SOME OTHER MARKETS HAVE GROWN LESS AFFORDABLE IN 1991 LAS VEGAS AND MADISON PRICES WERE IN LINE WITH THE LOCAL INCOME INDEXES WHILE PORTLAND'S PRICES WERE 12 ABOVE LOCAL PAY NOW PRICES ARE 13 HIGHER THAN THE INCOME INDEX IN LAS VEGAS 12 HIGHER IN MADISON AND 21 HIGHER IN PORTLAND WHERE PRICES EXCEED THE INCOME INDEX IN THEORY THE TWO WILL TEND TOWARD EQUILIBRIUM IN HARTFORD CONN PRICES AND PAY MOVED BACK INTO LINE LAST YEAR AFTER INCOMES TRAILED BY 23 IN 1988 BUT OFTEN THE PROCESS TAKES MUCH LONGER THOUGH PRICES IN MUCH OF THE NORTHEAST APPEAR TO BE STABILIZING THE INCOME INDEXES STILL LAG IN MANY AREAS AND JOB LOSSES MAKE MORE PRICE DECLINES LIKELY IN CALIFORNIA COASTAL MARKETS HAVE ANOTHER COUPLE OF YEARS TO GO TO REACH EQUILIBRIUM SAYS INGO WINZER EDITOR OF LOCAL MARKET MONITOR THE FEDERAL HOME LOAN MORTGAGE CORP WORRIED THAT US HOUSING PRICES WILL REMAIN WEAK THIS DECADE RECENTLY INCREASED ITS GUARANTEE FEES FOR RISKIER LOANS BY ABOUT 8 AND IS CONSIDERING RAISING THE FEES ON ALL THE OTHER RESIDENTIAL MORTGAGES IT BUYS THE GUARANTEE FEES PAID BY LENDERS WHO PASS THE COSTS ON TO BORROWERS IN THE FORM OF HIGHER MONTHLY PAYMENTS ARE USED AS INSURANCE SO THE MCLEAN VA COMPANY KNOWN AS FREDDIE MAC CAN GUARANTEE ITS INVESTORS THEY WILL BE REPAID UNDERLYING FREDDIE MAC'S CONCERN IS THE SLOWING OF APPRECIATION IN HOUSING PRICES TO ABOUT 2 A YEAR FROM AS MUCH AS 8 ANNUALLY IN THE 1980S AND 10 IN THE 1970S ANALYSTS ESTIMATE APPRECIATION WILL RANGE FROM 2 TO 4 A YEAR FOR MUCH OF THIS DECADE SLOWER APPRECIATION MAKES HOMEOWNERS MORE VULNERABLE TO DELINQUENCIES AND DEFAULTS WITH THE SLUGGISHNESS OF THE ECONOMY AND THE LOWER PRICE APPRECIATION WE THINK THE COSTS OF GUARANTEEING MORTGAGES WILL BE HIGHER FOR THE NEXT SEVERAL YEARS SAYS LELAND C BRENDSEL FREDDIE MAC'S CHAIRMAN AND CHIEF EXECUTIVE IN APRIL FREDDIE MAC RAISED ITS GUARANTEE FEES ON LOANS THAT REQUIRE A BALLOON REPAYMENT IN FIVE TO SEVEN YEARS THOUGH THE COMPANY WON'T DISCLOSE ITS FEES ANALYSTS SAY THEY GENERALLY RUN AS LITTLE AS 003 OF A LOAN ON A 100000 FIXEDRATE LOAN THE FEE COULD BE AS LITTLE AS 25 A MONTH CURRENTLY SAYS JOHN GIBBONS CHIEF FINANCIAL OFFICER FOR FREDDIE MAC AN 8 INCREASE WOULD RAISE THAT TO 27 A MONTH THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANOTHER BIG MORTGAGE BUYER SAYS IT DOESN'T EXPECT ANY IMMEDIATE FEE CHANGE BUT SOME ANALYSTS SAY IT MAY FOLLOW SUIT THOUGH MORTGAGE RATES ARE AT THEIR LOWEST LEVELS IN 22 YEARS THOUSANDS OF BORROWERS ARE MISSING OUT ON REFINANCING AMID ECONOMIC WEAKNESS MORTGAGE RATES HAVE BEEN FALLING FAIRLY STEADILY IN RECENT WEEKS PRECIPITATING YET ANOTHER REFINANCING WAVE BUT EVEN WITH THE 30YEAR FIXEDRATE MORTGAGE AT 72 ANALYSTS SAY MANY BORROWERS STILL CAN'T REFINANCE BECAUSE THEIR INCOME HAS DECLINED OR THEIR HOMES HAVE LOST VALUE THE INCOME PROBLEM HAS SPREAD AS CORPORATE LAYOFFS HAVE REDUCED MANY TWOINCOME HOUSEHOLDS TO JUST ONE INCOME MANY OF THOSE PEOPLE ARE RIPE FOR REFINANCING BUT ARE JUST SITTING ON THE SIDELINES SAYS KEITH GUMBINGER AN ANALYST AT HSH ASSOCIATES BUTLER NJ WHICH TRACKS MORTGAGE DATA THERE AREN'T STATISTICS ON HOW MANY PEOPLE CAN'T REFINANCE BUT THE FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC REPORTS 12 OF THE BORROWERS IN ITS MORTGAGE PORTFOLIO LACK SUFFICIENT EQUITY TO REFINANCE IN CALIFORNIA JONATHAN E GRAY AN ANALYST AT SANFORD C BERNSTEIN & CO ESTIMATES 5 TO 8 OF ALL HOMES HAVE ZERO OR NEGATIVE EQUITY SOME MORTGAGE BANKERS THINK FREDDIE MAC AND ANOTHER BIG MORTGAGE BUYER THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE SHOULD CHANGE THEIR REFINANCING RULES TO ACCOMMODATE MORE BORROWERS MANY LOANS INSURED BY THE VETERANS ADMINISTRATION AND THE FEDERAL HOUSING ADMINISTRATION CAN BE REFINANCED WITHOUT THE BORROWER HAVING TO REQUALIFY THE RATIONALE WHILE A BORROWER WITH SUFFICIENT EQUITY AND INCOME MAKES A LOAN LESS RISKY A HOMEOWNER WITH SAY NO EQUITY AND HIGHER MONTHLY PAYMENTS IS MORE LIKELY TO DEFAULT THAN SOMEONE WITH NO EQUITY AND LOWER MONTHLY PAYMENTS THE KEY ISSUE IS THAT THE MONTHLY PAYMENTS ARE GOING TO GO DOWN SAYS STEPHEN B ASHLEY PRESIDENTELECT OF THE MORTGAGE BANKERS ASSOCIATION OF AMERICA A PERSON IS BETTER OFF WITH MORE DISPOSABLE INCOME THAN LESS FREDDIE MAC AND FANNIE MAE WHICH SELL MORTGAGEBACKED SECURITIES TO INVESTORS SAY THEY AREN'T INCLINED TO EASE UP BECAUSE AN INCREASE IN PREPAYMENTS WOULD MAKE THEIR SECURITIES LESS ATTRACTIVE SOUTHERN CALIFORNIA RESIDENTIAL AND COMMERCIAL FORECLOSURES JUMPED 80 IN THE FIRST FIVE MONTHS OF THIS YEAR FROM A YEAR EARLIER ACCORDING TO TRW REDI PROPERTY DATA RIVERSIDE CALIF NEWHOME SALES IN MASTERPLANNED COMMUNITIES ROSE 165 LAST YEAR ACCORDING TO A SURVEY BY ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP 9307270141 930727 ECONOMY ITC WILL RULE ON STEELTARIFF DECISION DISPUTE SPARKS DEBATE ON FAIRNESS OF US TRADE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL THE US INTERNATIONAL TRADE COMMISSION IS TO DECIDE TODAY WHETHER TO LET STAND LAST MONTH'S COMMERCE DEPARTMENT RULING THAT IMPOSED DUTIES AVERAGING 365 ON STEEL FROM 20 NATIONS A VICTORY FOR US STEELMAKERS WHICH MANY OBSERVERS EXPECT WOULD KEEP IMPORTS AT BAY LIFTING DOMESTIC SHIPMENTS AND HELPING PRICE INCREASES STICK THAT WOULD RESTORE STEELMAKERS' PROFITS GIVING THEM WHAT THEY SOUGHT WHEN THEY LAUNCHED THE TRADE BATTLE MORE THAN A YEAR AGO BUT A VICTORY FOR US PRODUCERS ALSO WOULD TURN THE WORLD'S ATTENTION TO THE TRADE BEHAVIOR OF AMERICAN STEELMAKERS AS SOME TRADING PARTNERS RETALIATE AND OTHERS DEMAND NEGOTIATED SOLUTIONS TO THE MESS CENTRAL TO THE ARGUMENTS BY THE FOREIGN PRODUCERS IS THE COMPLAINT THAT THE US PROCLAIMS ITSELF A FREE TRADER WHILE ALLOWING SOME OF THE SAME SUBSIDIES DUMPING AND TRADE BARRIERS THAT IT CRITICIZES IN OTHER NATIONS I'M SYMPATHETIC TO THE DESIRE TO HAVE THIS LEVEL PLAYING FIELD BUT YOU CAN'T TALK OUT OF BOTH SIDES OF YOUR MOUTH SAYS JOHN MAYBERRY CHIEF EXECUTIVE OF CANADA'S DOFASCO INC IF YOU REALLY WANTED TO TALK TURKEY ON SUBSIDIES AND DUMPING EVERYONE SHOULD LOOK IN THE MIRROR IN THE STEELTRADE PROCEEDINGS NEITHER THE ITC NOR THE COMMERCE DEPARTMENT ALLOWED ANY MENTION OF SUBSIDIES RECEIVED BY US COMPANIES AND THE DUTIES LIKE OTHERS IMPOSED UNDER US TRADE LAWS AREN'T GOVERNED BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR ALTERED BY THIS MONTH'S INTERNATIONAL AGREEMENT REACHED AT THE TOKYO ECONOMIC SUMMIT TO CUT CERTAIN TARIFFS THE US COMMERCE DEPARTMENT FREELY ACKNOWLEDGES THAT US TRADE LAWS DON'T REFLECT US COMPANIES' ACTIONS WE'RE NOT INVESTIGATING DOMESTIC PRODUCERS SAYS JOSEPH SPETRINI ACTING ASSISTANT SECRETARY FOR IMPORT ADMINISTRATION IT'S UP TO FOREIGN GOVERNMENTS TO INVESTIGATE WHO'S DUMPING OR MAKING INJURIOUS SALES IN THEIR MARKETS MOREOVER US STEEL COMPANIES POINT OUT THAT THE SUBSIDIES THEY RECEIVE ARE DWARFED BY THE MORE THAN 100 BILLION IN SUBSIDIES THEY SAY FOREIGN PRODUCERS HAVE RECEIVED SINCE 1980 IT'S UNFAIR TO MENTION US SUBSIDIES IN THE SAME BREATH AS EUROPEAN STEEL SAYS LTV CORP CHAIRMAN DAVID HOAG SUBSIDIES ARE A WAY OF LIFE IN EUROPE AND THOMAS GRAHAM HEAD OF ARMCO STEEL WHICH IS HALFOWNED BY ARMCO INC HAS SAID HE WOULD GLADLY TRADE AWAY THE US'S BREAKS FOR THE EUROPEANS' YET GARY HORLICK A LAWYER WITH O'MELVENY & MYERS WHICH REPRESENTS SOME FOREIGN STEELMAKERS SAYS US STEEL COMPANIES GOT ABOUT 10 BILLION OF SUBSIDIES IN THE 1980S THAT WOULD VIOLATE US TRADE LAWS THIS FIGURE INCLUDES TAX BREAKS FROM CONGRESS OF 650 MILLION IN 1982 AND 500 MILLION IN 1986 AND 365 MILLION IN SUBSIDIZED FEDERAL LOANS THE INDUSTRY ALSO GETS SUBSIDIES MR HORLICK SAYS IN THE FORM OF INDUSTRIALDEVELOPMENT BONDS GOVERNMENTFUNDED RESEARCH STATE TAX ABATEMENTS AND PENSIONFUND BAILOUTS AND WITH US MILLS LOSING MONEY THEY ARE BY DEFINITION DUMPING STEEL WHEREVER THEY SELL IT BECAUSE THEY ARE SELLING BELOW COST TO SOME THE US WOULD BE MORE CONSISTENT EITHER TO RECOGNIZE THAT AMERICAN COMPANIES ALSO DUMP AND RECEIVE SUBSIDIES AND THEREFORE RELAX ITS POSITION ON FOREIGN FAULTS OR TO SEEK THE ELIMINATION OF ALL ABUSES INCLUDING ITS OWN GARY HUFBAUER OF THE INSTITUTE OF INTERNATIONAL ECONOMICS FOR EXAMPLE SUPPORTS THE STEEL INDUSTRY'S LITIGATION BUT SAYS US TRADE LAWS SHOULD BE CHANGED TO REFLECT US COMPANIES' BEHAVIOR STEEL IS ONLY THE LATEST PRODUCT TO PROVOKE DEBATE ABOUT A DOUBLE STANDARD IN US LAWS A 90PAGE REPORT ISSUED IN APRIL BY THE EUROPEAN COMMUNITY CITED A LAUNDRY LIST OF BARRIERS TO THE US MARKET A REPORT ON AGRICULTURAL SUBSIDIES BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT FOUND THAT ON A PERFARMER BASIS US SUBSIDIES OF 36100 WERE MORE THAN DOUBLE THE EC'S 17700 IN AN EARLIER DISPUTE INVOLVING EUROPE'S AIRBUS INDUSTRIE THE EC ACCUSED THE US OF PUMPING 33 BILLION INTO THE COMMERCIAL AIRCRAFT INDUSTRY FROM 1976 TO 1990 IN THE FORM OF RESEARCH MONEY FROM THE DEFENSE DEPARTMENT AND NATIONAL AERONAUTICS AND SPACE ADMINISTRATION PROGRAMS SIMILAR ARGUMENTS HAVE BEEN MADE ABOUT THE US SEMICONDUCTOR INDUSTRY FOREIGN COUNTRIES HAVE ENTERTAINED TRADE LITIGATION REGARDING AMERICAN STEEL CHEMICALS MEDICAL EQUIPMENT PAPER COMPUTERS BEER CORN WHEAT AND EVEN CANDY BARS TO NAME A FEW BUT WHILE DUMPING CASES ABOUND MANY COUNTRIES ARE RELUCTANT TO ACCUSE THE US OF SUBSIDIZING BECAUSE OF THEIR OWN SUBSIDIES THE COMMUNITY DOESN'T FEEL A SUBSIDY IS A SUPER NONO FOR EITHER SIDE THE EC SPOKESWOMAN SAYS STEELMAKERS MEANWHILE POINT OUT THAT THEIR SUBSIDIES USUALLY AREN'T INDUSTRY SPECIFIC AND THEREFORE ACCEPTABLE UNDER US TRADE LAWS BUT THE DISTINCTION BECOMES MURKY WHEN A GENERAL SUBSIDY BECOMES HEAVILY CONCENTRATED IN ONE INDUSTRY US STEELMAKERS FOR EXAMPLE EMPLOYED A THIRD OF ALL RETIREES RECEIVING PAYMENTS FROM THE US AGENCY THAT GUARANTEES PENSIONS TAKING A BROADER INTERPRETATION OF SUBSIDIES A STUDY BY THE CANADIAN STEEL PRODUCERS ASSOCIATION IN 1990 CLAIMED US STEELMAKERS RECEIVED 30 BILLION IN SUBSIDIES IN THE 1980S US PRODUCERS HOTLY CONTESTED THAT STUDY BUT THEY DO ACKNOWLEDGE MANY BREAKS USX CORP FOR EXAMPLE HAS A 54 MILLION TAX ABATEMENT IN GARY IND AND A 410 MILLION ABATEMENT AT ITS JOINT VENTURE WITH KOBE STEEL LTD IN OHIO LTV'S SPENDING LTV MEANWHILE SPENT 2 BILLION OF CREDITORS' MONEY IN CHAPTER 11 BANKRUPTCY PROCEEDINGS NOT A GOVERNMENT SUBSIDY BUT NOT EXACTLY A FREEMARKET ARRANGEMENT THE COMPANY ALSO JUST WON A 150 MILLION GOVERNMENT GRANT TO STUDY A NEW IRONMAKING PROCESS EVEN HEALTHY STEELMAKERS CONFESS TO WHAT SOME WOULD CALL GOVERNMENT SUBSIDIES NUCOR CORP SAYS IT GOT A SUBSTANTIAL LONGTERM PROPERTYTAX ABATEMENT AT ITS NEW ARKANSAS PLANT AS WELL AS OTHER TAX CREDITS KENTUCKY JUST AWARDED AS MUCH AS 140 MILLION IN INCOME TAX CREDITS OVER 25 YEARS TO DOFASCO AND COSTEEL INC TWO CANADIAN COMPANIES THAT PLAN TO BUILD A MILL IN THE STATE ALLEGHENY LUDLUM CORP A STAINLESS STEEL MAKER SAYS THE MILL IT BOUGHT IN 1988 FROM USX WAS FINANCED BY OUR FRIENDS IN PENNSYLVANIA IN THE FORM OF LOWINTEREST LOANS AND INDICATIONS ARE SUCH GOVERNMENT FAVORS ARE INCREASING IF ANYTHING WHEN GENEVA STEEL OPENED AN OLD USX PLANT IN THE LATE 1980S IT GOT A 2MILLIONAYEAR SALES TAX EXEMPTION AND A BREAK IN UNEMPLOYMENT TAXES BUT EVEN THAT'S NOT MUCH COMPARED WITH THE CANDYSTORE EXEMPTIONS OFFERED BY SOME 28 STATES THESE DAYS SAYS KEN JOHNSEN GENERAL COUNSEL WE'RE ENVIOUS OF THAT 9307270140 930727 INSURERS' COST ESTIMATES FOR MIDWEST FLOODS RISE NEW YORK INSURANCE COMPANIES' EXPENSES FROM THE MIDWEST FLOOD ARE RISING BUT THEIR COSTS WILL STILL BE SMALL COMPARED WITH WHAT THEY HAVE PAID ON OTHER MAJOR CATASTROPHES THE LATEST ESTIMATES HAVE INSURERS PAYING ABOUT 285 MILLION TO STORM VICTIMS A NEW ESTIMATE COMING OUT AS EARLY AS TODAY WILL PUSH THE TOTAL HIGHER PERHAPS SIGNIFICANTLY BUT THE COSTS WON'T COME ANYWHERE NEAR THE 17 BILLION THAT INSURERS PAID ON HURRICANE ANDREW ALTHOUGH THE FINANCIAL TOLL OF THE FLOOD IS NOW ESTIMATED TO BE SEVERAL BILLION DOLLARS INSURANCE CLAIMS HAVE BEEN MINIMAL BECAUSE PROPERTY INSURANCE POLICIES TYPICALLY DON'T COVER FLOODS BUT SOME LIABILITY POLICIES PARTICULARLY THOSE BOUGHT BY LARGE CORPORATIONS INCLUDE FLOOD PROTECTION PAYOUTS ON THOSE POLICIES HAVE BEEN MOUNTING AS CLAIMS COME IN FROM DES MOINES IOWA KANSAS CITY MO AND ST LOUIS WE HAVE A NUMBER OF MAJOR COMMERCIAL LOSSES SAID GARY KERNEY CATASTROPHE DIRECTOR FOR THE PROPERTY CLAIMS SERVICE OF THE AMERICAN INSURANCE SERVICES GROUP A TRADE GROUP THAT CALCULATES INDUSTRY CLAIMS THEY COULD ADD UP TO A BIG NUMBER THE CLAIMS INCLUDE THE COSTS OF REPLACING EVERYTHING FROM CONSTRUCTION EQUIPMENT TO PAPERS STORED IN FLOODED BASEMENTS 9307270139 930727 PAINEWEBBER IS PENALIZED FOR SALES PRESSURE ON BROKERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S BIG BROKERAGE FIRMS INCREASINGLY HAVE PRODDED BROKERS TO PUSH THEIR OWN MUTUAL FUNDS AND OTHER PRODUCTS OVER COMPETING INVESTMENTS THAT PRODUCE FAR LESS IN FEES FOR THE CONCERNS NOW SOME OF THOSE BROKERS ARE FIGHTING BACK IN AN UNUSUAL DECISION A THREEMEMBER ARBITRATION PANEL OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HAS ORDERED PAINEWEBBER GROUP INC TO PAY AN AWARD TO FIVE FORMER BROKERS WHO ACCUSED THE FIRM OF FORCING THEM FROM THEIR JOBS AFTER THEY BALKED AT SELLING PAINEWEBBER PROPRIETARY PRODUCTS TO THEIR CLIENTS BROKERAGE FIRMS SUCH AS PAINEWEBBER ROUTINELY EARN FATTER PROFITS FOR SELLING INHOUSE OR PROPRIETARY MUTUAL FUNDS AND OTHER INVESTMENTS THAN FOR SELLING COMPETING PRODUCTS THAT'S BECAUSE SECURITIES FIRMS GET RECURRING ANNUAL MANAGEMENT FEES OF AS MUCH AS 1 OF ASSETS PLUS ABOUT TWOTHIRDS OF THE SALES FEE WHEN THEY SELL SUCH INHOUSE PRODUCTS FIRMS GET NO MANAGEMENT FEES FOR OUTSIDE PRODUCTS THE NASD AWARD WHICH TOTALED ABOUT 700000 ISN'T HUGE BUT THE DECISION APPEARS TO BE THE FIRST TIME THAT A BIG BROKERAGE FIRM HAS BEEN ORDERED TO PAY EMPLOYEES WHO REFUSED TO SELL SUCH PRODUCTS ARBITRATION SPECIALISTS SAY AN ARBITRATION CASE BROUGHT AGAINST DEAN WITTER REYNOLDS INC BY A FORMER BROKER INVOLVING SIMILAR ALLEGATIONS IS PENDING IN TEXAS SECURITIES LAWYERS SAY THIS IS A VERY STRONG MESSAGE SAYS SAMANTHA RABIN OF THE SECURITIES ARBITRATION COMMENTATOR A MAPLEWOOD NJ NEWSLETTER WHAT THE PANEL IS SAYING IS THAT IT WILL COME DOWN HARD AND HEAVY ON FIRMS THAT FORCE OUT BROKERS WHEN THEY REFUSE TO SELL THE PROPRIETARY PRODUCT OF THE MONTH THAT ISN'T SUITABLE FOR CLIENTS PAINEWEBBER SAID IT WON'T APPEAL THE DECISION WHICH WAS HANDED DOWN IN MAY BUT HAS SURFACED ONLY NOW WE DISAGREE WITH AND ARE DISSATISFIED WITH THE PANEL'S DECISION A PAINEWEBBER SPOKESWOMAN SAID THE FIRM DENIES THAT IT PRESSURES BROKERS TO SELL PROPRIETARY PRODUCTS THAT ARE UNSUITABLE FOR CLIENTS THE CASE WAS FILED LAST YEAR BY FIVE FORMER BROKERS IN PAINEWEBBER'S TAMPA BRANCH OFFICE THE BROKERS LESTER HIRSCH JR STEVEN ADLER JAMES WOODCOCK RUDOLF FERNANDEZ AND ANDREW HIRSCH ACCUSED PAINEWEBBER OF REQUIRING THEM TO SELL TO THEIR CLIENTS PAINEWEBBER PROPRIETARY PRODUCTS WHICH WERE NOT SUITABLE FOR MANY OF THE THEIR CLIENTS ACCORDING TO PAPERS FILED WITH ARBITRATORS PAINEWEBBER INSISTED THAT MR ADLER WHOSE SPECIALTY IS RETIREMENT ACOUNTS PUT HIS RETIREMENTFUND CLIENTS IN PAINEWEBBER RMA ACCOUNTS WHICH ARE NOT SUITABLE FOR SUCH CLIENTS THE PAPERS FILED WITH ARBITRATORS SAID RMAS OR RESOURCE MANAGEMENT ACCOUNTS COMBINE ACCESS TO MONEYMARKET FUNDS WITH CHECKWRITING CREDIT CARDS AND STOCK AND BOND TRADING OTHER PROPRIETARY PRODUCTS THAT WERE PUSHED INCLUDE GLOBAL INCOME MUTUAL FUNDS SAYS JONATHAN ALPERT A TAMPA LAWYER REPRESENTING THE PLAINTIFFS MR ADLER AND ANDREW HIRSCH WERE DIRECTED NOT TO SELL CERTAIN INSURANCE PRODUCTS THE PAPERS SAID AND HAD THEIR COMMISSION INCOME REDUCED BY 40 BECAUSE THEY SOLD ANNUITIES CONTRACTS FROM INSURANCE FIRMS THAT WEREN'T CORE COMPANIES OF PAINEWEBBER PAINEWEBBER AND OTHER FIRMS HAVE ARRANGEMENTS WITH CORE COMPANIES IN WHICH THEY RECEIVE A HIGHER PERCENTAGE OF FEES THAN WITH OUTSIDE COMPANIES THE BROKERS WERE PRESSURED TO PLACE THE INTEREST OF THE HOUSE FIRST THE HOUSE SECOND AND THE HOUSE THIRD ASSERTED MR ALPERT THE LAWYER A BROKER SHOULD PLACE HIS CLIENTS FIRST THE HOUSE SECOND AND HIMSELF THIRD HE SAID 9307270138 930727 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THE BIG TRICK IN MAKING HOLLYWOOD BIOPICS INTO PLEASURABLE SCHLOCK IS FINDING THE RIGHT ACTORS TO PLAY THE PARTS ESPECIALLY WHEN THE MOVIE'S ABOUT A STILL VIBRANT PERFORMER TINA TURNER MIRACLES DO HAPPEN AND THESE FILMMAKERS FOUND THEIRS IN MS BASSETT SHE MOVES LIKE A WOMAN POSSESSED BY WHATEVER POSSESSES MS TURNER AND IT'S A KICK TO WATCH MR FISHBURNE IS GREAT TOO AS IKE HER CATALYST AND HER ABUSER ANYONE WHOSE IMAGINATION HAS BEEN TOUCHED BY DINOSAURS WILL BE ENTRANCED BY JURASSIC PARK THESE CINEMATIC GRANDCHILDREN OF THE MONSTER LIZARD GODZILLA ARE STUPENDOUS SOME ARE TERRIFYING OTHERS ARE QUITE BEAUTIFUL THE PROBLEM MAY BE THAT WHILE THE DINOS FEEL REAL THE HUMANS FEEL FAKE HOWEVER THE PICTURE DOES WHAT IT'S MEANT TO DO DIG UP LOTS OF PREHISTORIC TERROR IT'S VERY SCARYTOO SCARY FOR THE YOUNGSTERS LINING UP FOR JURASSIC PARK GOODIES AT BURGER JOINTS IT ISN'T NECESSARY TO KNOW THAT MS VARDA WAS MARRIED TO THE LATE FRENCH FILMMAKER JACQUES DEMY IN ORDER TO ENJOY THIS BEAUTIFULLY CONSTRUCTED BIOGRAPHY OF DEMY AS A MOVIEMAD BOY ON THE OTHER HAND THE KNOWLEDGE THAT SUBJECT AND DIRECTOR WERE MARRIED ADDS TO THE FILM'S ROMANTICISM AND POIGNANCY MS VARDA NOT ONLY UNDERSTANDS DEMY'S FILMS SUCH AS THE UMBRELLAS OF CHERBOURG SHE UNDERSTANDS HIS LIFE AND MAKES FLITTING BACK AND FORTH BETWEEN HIS FILMS AND HER FILM A PLEASURE THIS PICTURE ABOUT THE CATANDMOUSE GAME BETWEEN A SECRET SERVICE MAN AND A WOULDBE PRESIDENTIAL ASSASSIN IS FILLED WITH GRACE NOTES AND GRACEFUL PERFORMANCES IT'S GREAT FUN TO WATCH TWO WIDELY DIVERGENT PERFORMERS IN THIS CASE MR MALKOVICH AS THE ASSASSIN AND MR EASTWOOD THE SECRET SERVICE MAN GO AT EACH OTHER WITH THEIR OWN PARTICULAR KIND OF BRILLIANCE THE MOVIE IS BEAUTIFULLY PACED ALLOWING FOR A REAL FEELING OF HUMANITY TO DEVELOP NOT MERELY STOPPING FOR OBLIGATORY HUMANIZING MILLISECONDS MR BRANAGH HAS MADE SHAKESPEARE'S MUCH ADO INTO A GREAT SUMMER PICTURE A GIDDY LIGHTHEARTED POSTBEACH ENTERTAINMENT WHO WOULD HAVE THOUGHT IT BUT DON'T WORRY THIS ISN'T THE RAP VERSION IT'S JUST THAT YOU CAN TELL WHAT KIND OF THRILL MR BRANAGH GETS OUT OF SHAKESPEARE HE WANTS US TO GIGGLE WITH DELIGHT AND WE DO SOMETIMES ALL AN ACTOR NEEDS TO BE A STAR OR TO SEEM LIKE ONE IS THE RIGHT BODY PART YOUNG MR NICHOLAS HAS JUST WHAT HE NEEDS TO PLAY A 12YEAROLD WHO ONE DAY WAKES UP WITH A PITCHING ARM THAT QUALIFIES HIM FOR THE MAJORS HE HAS A GREAT PAIR OF EYEBROWS MR STERN PREVIOUSLY DIRECTED 10 EPISODES OF THE TV SHOW THE WONDER YEARS ABOUT A BOY'S ADOLESCENCE IN THE 1960S THIS MOVIE COULD BE AN EXTENDED WONDER YEARS EPISODE WITH THE SAME CLEVER MIX OF NOSTALGIA AND MISCHIEF 9307270137 930727 CHEVRON ARCO POST DECLINES IN NET INCOME PHILLIPS PETROLEUM'S PROFIT ROSE 21 FOR QUARTER IN LINE WITH INDUSTRY BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL CHEVRON CORP AND ATLANTIC RICHFIELD CO REPORTED DECLINES IN NET INCOME FOR THE SECOND QUARTER WHILE PHILLIPS PETROLEUM CO MORE IN LINE WITH THE REST OF THE INDUSTRY POSTED AN INCREASE IN EARNINGS IN RECENT DAYS OTHER MAJOR OIL COMPANIES REPORTED SIZABLE QUARTERLY GAINS REFLECTING HEALTHIER NATURAL GAS PRICES AND REFINING AND MARKETING MARGINS BUT IT IS UNLIKELY THAT THE INDUSTRY'S ROSY PERFORMANCE OF THE FIRST HALF WILL CONTINUE DURING THE SECOND HALF OF THIS YEAR NATURAL GAS AND CRUDE OIL PRICES HAVE DECLINED RECENTLY AND DOWNSTREAM MARGINS CONTINUE TO BE DEPRESSED SAID PHILLIPS CHAIRMAN CJ SILAS HE POINTED OUT THAT BECAUSE OF THESE FACTORS SECONDQUARTER RESULTS MAY NOT BE INDICATIVE OF EARNINGS FOR THE REMAINDER OF THE YEAR WHILE CHEVRON'S OPERATING PROFIT GREW SHARPLY IN PART BECAUSE OF THE INDUSTRY TRENDS NET CHARGES OF 515 MILLION TOOK A HUGE BITE OUT OF ITS PROFITABILITY ARCO'S EARNINGS WERE ERODED BY DECREASING PROFITABILITY FROM ITS WEST COAST REFINING AND MARKETING OPERATIONS CHEVRON SAID ITS PROFIT DECREASED 84 IN THE SECOND QUARTER FROM A YEAR EARLIER THE NET CHARGES OF 515 MILLION AFTER OFFSETTING GAINS INCLUDED A GIANT CHARGE OF 552 MILLION INVOLVING THE ANTICIPATED SALE OF THE COMPANY'S PORT ARTHUR TEXAS AND PHILADELPHIA REFINERIES AND A MOVE TO CONSOLIDATE AND REORGANIZE ITS US MARKETING NETWORK IN THE SOUTHEAST OTHER PROVISIONS INCLUDING ENVIRONMENTAL CHARGES UNRELATED TO THE RESTRUCTURING REDUCED EARNINGS AN ADDITIONAL 52 MILLION LAST YEAR'S SECOND QUARTER INCLUDED NET CHARGES OF 39 MILLION SECONDQUARTER REVENUE DECLINED 57 TO 99 BILLION FROM 105 BILLION IN LAST YEAR'S SECOND QUARTER CHEVRON NOTED HOWEVER THAT EXCLUDING SPECIAL ITEMS ITS OPERATING PROFIT ACTUALLY JUMPED 60 TO 565 MILLION THE 1993 SECOND QUARTER MARKED THE THIRD CONSECUTIVE QUARTER THAT OUR EARNINGS EXCLUDING SPECIAL ITEMS HAVE SURPASSED 500 MILLION SAID CHAIRMAN KENNETH DERR OUR RESULTS CONTINUE TO BENEFIT FROM OUR COSTCUTTING PROGRAMS FROM HIGHER US NATURAL GAS PRICES AND FROM IMPROVED WORLDWIDE REFINED PRODUCT SALES MARGINS THE COMPANY'S COSTCUTTING PROGRAM PUT IN PLACE TWO YEARS AGO HAS CONTRIBUTED TO THE BETTER OPERATING PERFORMANCE ACCORDING TO OPPENHEIMER & CO ANALYST PAUL TING WHO HAS BEEN FOLLOWING THE COMPANY OPERATING COSTS DURING THE FIRST HALF OF THIS YEAR HAVE DECLINED BY 320 MILLION OVER THE SAME PERIOD LAST YEAR ALSO KICKING IN TO HELP THE COMPANY'S BOTTOM LINE IS GROWING OIL PRODUCTION FROM CHEVRON'S SHARE OF THE TENGIZ OIL FIELD IN THE REPUBLIC OF KAZAKHSTAN LOCATED IN THE FORMER SOVIET UNION ARCO'S SECONDQUARTER NET INCOME FELL 12 WHILE REVENUE ADVANCED 44 TO 47 BILLION FROM 45 BILLION A YEAR EARLIER ARCO CHAIRMAN LODWRICK COOK SAID COST REDUCTIONS AND HIGHER NATURAL GAS PRICES OFFSET THE COMPANY'S DECLINE IN OIL PRODUCTION RESULTING FROM THE SALE OF OIL FIELDS IN THE LOWER 48 STATES AND THE NATURAL DECLINE OF PRODUCTION FROM SOME OF ITS OTHER OIL FIELDS ARCO'S WORLDWIDE PRODUCTION OF CRUDE OIL AND NATURAL GAS LIQUIDS AVERAGED 667100 BARRELS A DAY IN THE 1993 SECOND QUARTER COMPARED WITH 737100 BARRELS A DAY DURING LAST YEAR'S SECOND QUARTER REFINING AND MARKETING EARNINGS WERE 79 MILLION AFTER TAX FOR THE QUARTER COMPARED WITH 103 MILLION AFTER TAX A YEAR EARLIER RESULTS FROM THOSE BUSINESSES DECLINED BECAUSE OF LOWER MARGINS AS A RESULT OF WEAKER GASOLINE PRICES AND HIGHER PRODUCT PURCHASES ARCO'S QUARTERLY RESULTS ALSO WERE HURT BY A LOSS OF 5 MILLION FROM ITS 499 EQUITY INTEREST IN LYONDELL PETROCHEMICAL CO THIS COMPARED WITH QUARTERLY EARNINGS OF 6 MILLION LAST YEAR LYONDELL WROTE OFF COSTS ASSOCIATED WITH AN ABANDONED PROJECT AS WELL AS COSTS RELATED TO A WORK FORCE REDUCTION PETROLEUM PHILLIPS'S NET ROSE 21 IN THE SECOND QUARTER TOTAL REVENUE INCREASED 61 TO 328 BILLION COMPARED WITH 309 BILLION IN THE 1992 SECOND QUARTER EXPLORATION AND PRODUCTION EARNINGS FOR THE QUARTER GREW AS A RESULT OF HIGHER US NATURAL GAS PRICES AS WELL AS LOWER EXPLORATION COSTS ACCORDING TO THE COMPANY REFINING AND MARKETING EARNINGS WERE HIGHER AS WELL BECAUSE OF MORE EFFICIENT REFINERY OPERATIONS LOWER CRUDE OIL PRICES AND HIGHER SALES VOLUME CHEMICAL EARNINGS DECLINED HOWEVER BECAUSE OF CONTINUING PRESSURE ON MARGINS FOR PLASTICS RESINS 9307270136 930727 MARKETING & MEDIA BMW PRINT ADS RECANT CLAIM FOR ITS V8 ENGINES WESTWOOD NJ THE US SALES ARM OF BAYERISCHE MOTOREN WERKE AG RAN PRINT ADS YESTERDAY IN NATIONAL PUBLICATIONS AND LEADING CALIFORNIA NEWSPAPERS TO RECANT A CLAIM IT FIRST MADE LAST YEAR ABOUT THE DURABILITY OF 40LITER V8 ENGINES IN ITS TOPOFTHELINE CARS THE OPEN LETTER TO BMW CUSTOMERS WHICH PROMISES EXTENDED WARRANTY COVERAGE FOR OWNERS OF ITS 1993MODEL 740I AND 740IL LUXURY SEDANS APPEARED YESTERDAY AFTER STATE AND COUNTY AUTHORITIES IN CALIFORNIA ASKED BMW TO SUBSTANTIATE THE DURABILITY CLAIMS IN THE ADS BMW ACKNOWLEDGES THAT IT CAN'T DO SO INVESTIGATORS FOR THE CALIFORNIA ATTORNEY GENERAL AND THE MARIN COUNTY DISTRICT ATTORNEY SAID THEY RECEIVED COMPLAINTS ABOUT BMW ADVERTISEMENTS THAT BEGAN APPEARING IN NATIONAL AND LOCAL PUBLICATIONS LAST FALL THOSE ADS CLAIMED THAT THE 40LITER V8 ENGINES THAT COME IN THE 740I AND 740IL HAD BEEN TESTED TO RUN AT REDLINE OR NEAR MAXIMUM ENGINE SPEEDS FOR OVER 100000 MILES STRAIGHT BOB NICHOLS A DEPUTY DISTRICT ATTORNEY FOR MARIN COUNTY SAID IT'S LIKELY THAT HIS OFFICE AND THE CALIFORNIA ATTORNEY GENERAL WILL TAKE FURTHER ACTION AGAINST BMW DESPITE THE AUTO MAKER'S PUBLIC ADMISSION OF ERROR 9307270135 930727 VW'S CHRONOLOGY OF LOPEZ OVERTURES COULD BENEFIT GM BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL A TOP VOLKSWAGEN AG BOARD MEMBER DISCLOSED NEW DETAILS OF VW'S TWOMONTH COURTSHIP OF FORMER GENERAL MOTORS CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA AND THE CHRONOLOGY COULD GIVE GM MORE AMMUNITION FOR ITS CHARGES THAT MR LOPEZ BETRAYED ITS INDUSTRIAL SECRETS IN A STATEMENT ISSUED ON HIS PERSONAL LETTERHEAD VW MANAGEMENT BOARD MEMBER JENS NEUMANN SAID HE MET WITH MR LOPEZ IN GERMANY ON JAN 15 FEB 4 AND AGAIN ON MARCH 9 WHEN AT 957 PM MR LOPEZ FINALLY SIGNED A CONTRACT TO JOIN VW RESPONDING TO AN ARTICLE YESTERDAY IN THE GERMAN NEWS MAGAZINE DER SPIEGEL MR NEUMANN SAID HE DIDN'T ASK FOR OR RECEIVE GM DOCUMENTS FROM MR LOPEZ BUT THE STATEMENT SEEMED TO BACK UP GM'S CONTENTION THAT MR LOPEZ WAS NEGOTIATING A DEAL WITH VW EVEN AS HE CONTINUED TO ATTEND TOPLEVEL STRATEGY MEETINGS EARLIER THIS YEAR AT GM AND ITS GERMAN SUBSIDIARY ADAM OPEL AG SOME OF THOSE MEETINGS FOCUSED ON OPEL'S STRATEGY FOR COMPETING WITH ARCHRIVAL VW GM OFFICIALS HAVE SAID GM OFFICIALS REACTED WITH SURPRISE TO MR NEUMANN'S STATEMENT A GM SPOKESMAN SAID THE COMPANY WOULD LEAVE IT UP TO THE PUBLIC TO EVALUATE IT GM MEANWHILE IS OPENING UP A NEW FRONT IN ITS LEGAL WAR WITH VW AND MR LOPEZ BY ASKING THE HAMBURG GERMANY PUBLIC PROSECUTOR'S OFFICE TO INVESTIGATE WHETHER MR LOPEZ VW CHIEF EXECUTIVE FERDINAND PIECH AND JOSE MANUEL GUTIERREZ A VW PURCHASING EXECUTIVE MADE FALSE STATEMENTS IN AFFIDAVITS FILED WITH A HAMBURG COURT THE AFFIDAVITS WERE MADE IN CONNECTION WITH VW'S UNSUCCESSFUL EFFORT TO STOP DER SPIEGEL FROM PRINTING MORE ACCUSATIONS AGAINST MR LOPEZ MESSRS LOPEZ PIECH AND GUTIERREZ HAVE STOOD BY THEIR STATEMENTS 9307270134 930727 EMERSON RADIO PLANS LAYOFFS PARSIPPANY NJ EMERSON RADIO CORP A MAKER OF CONSUMER ELECTRONICS SAID IT WILL LAY OFF 153 EMPLOYEES AT ITS PRINCETON IND FACILITY EFFECTIVE SEPT 28 THE MOVE WILL REDUCE THE STAFF AT ITS COMPONENTS PLANT TO 256 ACCORDING TO THE ASSOCIATED PRESS 9307270133 930727 SOUTHERN CALIFORNIA CO SPLIT SAN DIMAS CALIF SOUTHERN CALIFORNIA WATER CO SAID IT'S CONSIDERING A 2FOR1 STOCK SPLIT THE UTILITY IS CALLING A SPECIAL MEETING OF SHAREHOLDERS SEPT 13 TO CONSIDER AN AMENDMENT TO ITS ARTICLES OF INCORPORATION THAT WOULD ALLOW FOR THE SPLIT THE UTILITY SAID THE RECORD DATE FOR DETERMINING SHAREHOLDERS ELIGIBLE TO VOTE IS AUG 5 9307270132 930727 CORPORATE FOCUS US ROBOTICS HAS HIGH ASPIRATIONS FOR LOWLY MODEM MARKETING PUSH SEEKS TO TURN MUNDANE PC OPTION INTO A SEXY NAME BRAND BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL US ROBOTICS INC WANTS TO MAKE YOU CARE ABOUT COMPUTER MODEMS THE SKOKIE ILL TECHNOLOGY COMPANY IN A MAJOR MARKETING PUSH IS TRYING TO DO FOR THE LOWLY MODEM WHAT INTEL CORP HAS SOUGHT TO DO WITH MICROPROCESSORS CREATE A BRAND NAME OUT OF A LARGELY ANONYMOUS COMPUTER COMPONENT BUT ANALYSTS WARN THAT IT WON'T BE EASY TO MAKE A MOUNTAIN OUT OF A MODEM A PRODUCT MOST PEOPLE KNOW LITTLE AND COULD CARE LESSABOUT IN AN AGE OF COMPUTERS AND TELECOMMUNICATIONS MODEMS ARE CRITICALLY IMPORTANT DEVICES USUALLY HIDDEN BEHIND THE BACK PANEL OF A PERSONAL COMPUTER THEY CONVERT THE DIGITAL BITS GENERATED BY COMPUTERS TO ANALOG WAVES RECOGNIZED BY PHONE LINES THAT ALLOWS PC USERS TO COMMUNICATE VIA PHONE LINES TO OTHER COMPUTERS AND TO A SWARM OF PHONEBASED PRODUCTS AND SERVICES FROM BULLETIN BOARD SYSTEMS AND ONLINE DATABASES TO MULTIMEDIA SHOPPING AND COMPUTERIZED DATING SERVICES WITH THE NUMBER OF HOME COMPUTER USERS GROWING RAPIDLY US ROBOTICS IS PUSHING FOR MARKET SHARE BY SLASHING PRICES ON ITS ENTRYLEVEL LINE OF MODEMS BROADENING ITS CHANNEL OF DISTRIBUTION TO INCLUDE HIGHTECH SUPERSTORES AND CONSUMER ELECTRONICS OUTLETS AND BEEFING UP ITS ADVERTISING TO CATCH THE FANCY OF TECHNOPHOBES MODEMS CAN BE PURCHASED ALONE OR ALREADY BUILT INTO A PC THE COMPANY EVEN IS TOSSING AROUND THE IDEA OF A US ROBOTICS INSIDE STYLE OF BRANDING CAMPAIGN SIMILAR TO INTEL'S INTEL INSIDE CAMPAIGN SUPPORTED BY A SPLASHY ADVERTISING EFFORT INTEL HAS INDUCED MANY COMPUTER MAKERS TO STICK THE INTEL INSIDE LOGO ON THE FRONTS OF THEIR MACHINES MAKING INTEL'S CHIPS WIDELY KNOWN TO CONSUMERS OUTSIDE THE USUAL INDUSTRY FOLLOWERS IN SOME WAYS US ROBOTICS' LATEST MOVES ARE REMINISCENT OF THE SHAKEUP THAT RECENTLY HAS MADE COMPAQ COMPUTER CORP THE MOST COMPELLING TURNAROUND STORY IN THE BUSINESS COMPAQ TOO CUT ITS PRICES ON A NEW ENTRYLEVEL LINE BEEFED UP ITS ADVERTISING AND VASTLY EXPANDED ITS DISTRIBUTION TO HIT CUSTOMERS WHERE THEY BUY LAST WEEK THE HOUSTON COMPANY REPORTED THAT SECONDQUARTER NET INCOME TRIPLED ON A 97 INCREASE IN REVENUE BUT US ROBOTICS' PRODUCTS AREN'T NEARLY AS SEXY AS PCS AND IT IS COMPETING WITH GIANTS WHO HAVE A LOT MORE BULLETS IN THEIR HOLSTERS WITH ABOUT 8 OF AN ESTIMATED 12 BILLION MARKET US ROBOTICS TRAILS MOTOROLA'S CODEX CORP UNIT WHICH HAS ABOUT 16 OF THE MARKET HAYES MICROCOMPUTER PRODUCTS INC AND MOTOROLA'S UNIVERSAL DATA SYSTEMS UNIT BUT UNLIKE MANY COMPANIES THAT SHAKE THINGS UP TO SALVAGE AN AILING BUSINESS US ROBOTICS IS TAKING ITS GAMBLE AMID STEADILY IMPROVING FINANCIAL RESULTS STARTED BY CHAIRMAN CASEY G COWELL OUT OF HIS CHICAGOAREA APARTMENT THE COMPANY'S REVENUES HAVE GROWN NEARLY 200 OVER THE LAST TWO FISCAL YEARS TO 1124 MILLION FOR THE FISCAL YEAR ENDED IN OCTOBER PERSHARE EARNINGS OVER THE SAME PERIOD HAVE JUMPED FROM 17 CENTS TO 1 ROSS W MANIRE THE COMPANY'S CHIEF FINANCIAL OFFICER SAYS THAT RESULTS FOR THE THIRD QUARTER ENDED JULY 2 WERE SLIGHTLY AHEAD OF THE TOP RANGE OF ANALYSTS' PROJECTIONS FOR NET OF 42 MILLION OR 34 CENTS A SHARE ON REVENUE OF 441 MILLION A YEAR AGO THE COMPANY POSTED NET OF 28 MILLION OR 26 CENTS A SHARE ON REVENUE OF 285 MILLION US ROBOTICS PLANS TO RELEASE ITS THIRDQUARTER RESULTS TODAY AFTER THE MARKET CLOSES THE SUCCESS THOUGH HAS COME DESPITE HAVING A FAIRLY ANEMIC PRESENCE IN THE LOWEND CONSUMER BUSINESS ITS SEVENYEAROLD ENTRYLEVEL PRODUCT THE SPORTSTER HAS IN RECENT YEARS PROVED DISAPPOINTING RAISING FEARS THAT US ROBOTICS MIGHT MISS OUT ON THE SURGE PREDICTED IN HOME PC SALES THE RESULT WAS A PRICECUTTING STRATEGY THAT INSIDERS SAY WENT AGAINST THE GRAIN OF THE COMPANY'S ENGINEERINGDRIVEN CULTURE IT WAS A COMPETITIVE DECISION THAT WAS DISCUSSED AD NAUSEUM BEFORE WE TOOK IT SAYS MR MANIRE US ROBOTICS HAS CUT ITS TEETH ON THE MODEM WORLD'S LEADING EDGE THE COMPANY IS RANKED SECOND BEHIND CODEX IN THE INDUSTRY'S FASTESTGROWING SEGMENT THE MARKET FOR INDUSTRYSTANDARD MODEMS THAT TRANSMIT AT 14400 BITS PER SECOND IN ADDITION US ROBOTICS HAS MADE STRONG HEADWAY RECENTLY INTO THE HIGHSPEED SWITCHING BUSINESS USED BY CUSTOMERS LIKE THE COMPUSERVE ONLINE NETWORK TO ROUTE INCOMING CALLS BECAUSE THE COMPANY BUILDS ITS OWN COMPUTER CHIP TO ROUTE DATA THROUGH THE MODEM OTHER COMPANIES BUY THE CHIPS FROM OUTSIDE SUPPLIERS US ROBOTICS HAS BEEN ABLE TO BOAST THAT IT HAS BEEN FIRST TO MARKET WITH NEW PRODUCTS INDEED COMPANY OFFICIALS SAY COST REDUCTIONS MADE POSSIBLE BY THE CHIP DESIGN ENABLED US ROBOTICS TO WHACK PRICES BY MORE THAN 50 ON ITS SPORTSTER LINE WHICH SET OFF THE CURRENT PRICE WAR AND SENT SPORTSTER DEMAND SOARING WHEN THEY LOWERED THEIR PRICES THEY HAD THE OPPORTUNITY TO REALLY MAKE SOME HAY SAYS STEVEN D LEVY AN ANALYST AT SAN FRANCISCOBASED HAMBRECHT & QUIST IT'S CLEARLY CAUSED SOME PAIN IN THE MODEM BUSINESS NOW ANALYSTS SAY US ROBOTICS MUST TURN THE EARLY SPORTSTER MOMENTUM INTO A PERMANENT LEAD IN THE HOME PC BUSINESS A MARKET NOW BOOMING AS A RESULT OF BUILTIN FAX BOARDS HOME BANKING SERVICES AND COMPUTER BULLETIN BOARDS WE'RE LOOKING TO GET JOE EVERYMAN CONSUMER SAYS JONATHAN N ZAKIN THE COMPANY'S EXECUTIVE VICE PRESIDENT INSTEAD OF A MASS ADVERTISING BLITZ HOWEVER US ROBOTICS IS FOCUSING ITS MARKETING EFFORT ON A HANDFUL OF KEY TARGETS CALLED INFLUENCERS BY THE COMPANY INSTEAD OF TRYING TO REACH ALL OF THE NATION'S BULLETIN BOARD USERS FOR INSTANCE US ROBOTICS IS WOOING THE SYSTEM OPERATORS WHO ACT AS THE GATEKEEPERS OF THE BOARD THE COMPANY SELLS ITS MODEMS AT DEEP DISCOUNTS TO BOARD OPERATORS IN HOPES THAT THEY WILL BE RECOMMENDED TO THE OPERATORS' ONLINE PALS SIMILARLY US ROBOTICS SPENDS DAYS TRAINING AND STROKING SALESPEOPLE AT MAJOR COMPUTER SUPERSTORE CHAINS TO INDUCE THEM TO RECOMMEND ITS PRODUCTS TO THE NOVICE CUSTOMER CORPORATE COMPUTER DIRECTORS ARE ANOTHER MAJOR TARGET WHILE ANALYSTS LAUD THE COMPANY FOR ITS AGGRESSIVE MOVES THEY QUESTION HOW MUCH NEW BUSINESS THEY WILL CREATE THEY SAY MOST CONSUMERS ALREADY KNOW WHETHER THEY NEED A MODEM AND EXTRA PRODDING FROM A MANUFACTURER ISN'T LIKELY TO HAVE MUCH OF AN IMPACT INSTEAD THEY SAY THE COMPANY MUST CONVINCE CUSTOMERS WHO ALREADY WANT A MODEM THAT US ROBOTICS IS THE ONE TO PICK AND IN A BUSINESS AS MUNDANE AND STANDARDIZED AS COMPUTER MODEMS THAT'S A TASK THAT COULD PROVE MORE DIFFICULT THAN EVEN US ROBOTICS YET REALIZES THERE ARE ONLY SO MANY WAYS YOU CAN DIFFERENTIATE A MODEM SAYS LYNDA FITZPATRICK A MARKET ANALYST AT INTERNATIONAL DATA CORP IN FRAMINGHAM MASS IT'S NOT A VERY GLAMOROUS PRODUCT 9307270131 930727 BUSINESS BRIEF GILLETTE CO COMPANY PLANS TO INTRODUCE SENSOR RAZOR IN NEW COLORS GILLETTE CO SAID IT PLANS TO INTRODUCE A SPORT VERSION OF ITS SENSOR RAZOR THE BOSTON COMPANY SAID ITS SENSOR SPORT RAZOR WILL BE A LIMITED EDITION WITH A CHOICE OF THREE SPORTY VIBRANT HANDLE COLORS THE RAZOR WILL INCORPORATE FEATURES OF THE EXISTING SENSOR RAZOR LINE GILLETTE ADDED THIS MONTH GILLETTE SAID IT PLANS TO LAUNCH IN SEPTEMBER A SECONDGENERATION SENSOR RAZOR IN EUROPE THAT WILL INCLUDE BLADES WITH ELASTIC STRIPS OR MICROFINS INTENDED TO IMPROVE SHAVING 9307270130 930727 ENVIRONMENT VOLUNTEERS AID ENVIRONMENTAL AGENCIES BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL NEW JERSEY ENVIRONMENTAL PROSECUTOR STEVEN J MADONNA WAS SKEPTICAL THREE YEARS AGO WHEN THE PASSAIC RIVER COALITION A CITIZENS GROUP TOLD HIM IT PLANNED TO ROW THE ENTIRE 80MILE RIVER DOCUMENTING ENVIRONMENTAL VIOLATIONS BUT THE PHOTOS NOTES AND MAPS THEY DELIVERED SIX WEEKS LATER PROMPTED A DOZEN ENFORCEMENT ACTIONS INCLUDING A CLEANUP CASE INVOLVING LEAKING CHEMICAL TANKS MR MADONNA WHOSE OFFICE'S BUDGET WAS CUT IN HALF LAST YEAR IS NOW ORGANIZING OTHER VOLUNTEER MONITORING GROUPS FOR AN AUDIT OF ALL STATE WATERWAYS YOU'D BE A FOOL NOT TO WORK WITH THEM HE SAYS THESE ARE THINGS THAT WE AS CITIZENS COULD NOT BEGIN TO PAY FOR ENVIRONMENTAL AGENCIES ARE RELYING MORE HEAVILY ON VOLUNTEERS TO COLLECT SAMPLES MONITOR SHORELINES AND PERFORM OTHER BASIC ENFORCEMENT CHORES THE USE OF THESE PEOPLE RAISES QUESTIONS ABOUT AGENCY CONTROL AND THE RELIABILITY OF DATA BUT WITH AGENCY BUDGETS SQUEEZED VOLUNTEERS ARE HAVING A GROWING IMPACT ON ISSUES RANGING FROM LOCAL ZONING AND WATERQUALITY PLANS TO REGULATORY ENFORCEMENT IT CAN BE A REAL BONUS SAYS JOHN PENDERGRASS WHO MONITORS STATE AND LOCAL ISSUES FOR THE ENVIRONMENTAL LAW INSTITUTE IN WASHINGTON THEY CAN BE ANOTHER SET OF EYES THIRTYTWO STATES UP FROM ONLY A HANDFUL A DECADE AGO NOW HAVE SOME INVOLVEMENT WITH MONITORING BY VOLUNTEERS RANGING FROM ENVIRONMENTAL AND HOMEOWNERS GROUPS TO GANG MEMBERS IN EL PASO TEXAS AND SURFERS IN VENTURA COUNTY CALIF VOLUNTEERS FOR THE WASHINGTON DEPARTMENT OF ECOLOGY MONITOR 73 LAKES WHILE NORTH CAROLINA'S DEPARTMENT OF ENVIRONMENT HEALTH AND NATURAL RESOURCES GATHERS DATA FROM CITIZEN AIR MONITORS THE ENVIRONMENTAL PROTECTION AGENCY HAS GIVEN THE NATIONAL AUDUBON SOCIETY'S MINNESOTA BRANCH A GRANT TO REVIEW COMPLIANCE WITH FEDERAL WETLANDS CONSTRUCTION PERMITS IN THAT STATE NATIONWIDE THE EPA HAS ALSO MADE SMALL GRANTS TO DEVELOP TRAINING MANUALS A NATIONAL NEWSLETTER AND A COMPUTER BULLETIN BOARD FOR ENVIRONMENTAL VOLUNTEERS GOVERNMENT AGENCIES CAN'T MONITOR EVERYTHING BECAUSE THEY DON'T HAVE ENOUGH STAFF SAYS ALICE MAYIO THE EPA'S VOLUNTEER MONITORING COORDINATOR WE THINK VOLUNTEERS CAN REALLY HELP FILL THE GAPS IN A LOT OF AREAS DATA GATHERED BY VOLUNTEERS HAVE MOST TYPICALLY BEEN USED TO AID STATE AND LOCAL AGENCIES IN MAKING POLICY DECISIONS IN RHODE ISLAND WATER SAMPLES GATHERED BY SEVERAL GROUPS PROMPTED CHANGES IN STATE LAWS GOVERNING ONSITE SEWAGE DISPOSAL AND WATER SAMPLING BY SEVERAL GROUPS AROUND CHESAPEAKE BAY HAS HELPED GOVERNMENT AGENCIES TARGET CLEANUP EFFORTS AND MEASURE THEIR IMPACT THOUGH VOLUNTEER FINDINGS HAVE SELDOM BEEN THE SOLE BASIS FOR GOVERNMENT ENFORCEMENT ACTION THEY HAVE TIPPED OFF STATE INVESTIGATORS AND TRIGGERED A BROAD VARIETY OF REGULATORY INVESTIGATIONS AND CLEANUP ORDERS IN NORTH CAROLINA VOLUNTEERS DISCOVERED A CHEMICAL SPILL FROM A DURHAMAREA WASTEWATER TREATMENT PLANT AND AN ILLEGAL DUMP SITE ON AN ISOLATED CAPE FEAR RIVER TRIBUTARY A CHICAGOBASED GROUP CALLED THE SWAMP SQUAD HAS ALERTED EPA INVESTIGATORS IN THAT CITY TO A HOST OF ALLEGED VIOLATIONS OF FEDERAL WETLANDS STATUTES BY CONSTRUCTION COMPANIES MALL DEVELOPERS AND MANUFACTURERS YOU COULD LOOK AT IT AS A NEIGHBORHOOD WATCH WHERE PEOPLE LOOK FOR SUSPICIOUS CHARACTERS IN THEIR NEIGHBORHOODS SAYS KEN STOFFEL A SUBURBAN CHICAGO DENTIST AND SWAMP SQUAD STALWART THESE PEOPLE ARE JUST GENERALLY MORE ORGANIZED AND MORE EDUCATED ON WHAT TO LOOK FOR SAYS GREG CARLSON AN EPA INVESTIGATOR WHO HAS WORKED WITH THE GROUP THEY DO A GOOD JOB OF ALERTING US TO THE BIGGER VIOLATIONS BUT MANY REGULATORS AND ENVIRONMENTAL SCIENTISTS REMAIN SKEPTICAL NORTH CAROLINA'S ENVIRONMENTAL AGENCIES KEEP WATERMONITORING INFORMATION FROM VOLUNTEERS IN A SEPARATE DATABASE THAT ISN'T REGULARLY REVIEWED BY STATE INVESTIGATORS TO BE HONEST RIGHT NOW IT'S NOT USED FOR A WHOLE LOT SAYS GEORGE NORRIS THE STATE'S COORDINATOR OF THE VOLUNTEER PROGRAM SOME RESEARCHERS SAY ENFORCEMENT AGENCIES ALREADY HAVE AN OVERLOAD OF DATA THE FACT IS THAT WE HAVE SO MANY WELLKNOWN PROBLEMS ALREADY THAT WE CAN'T COPE WITH SAYS CHRISTOPHER D'ELIA AN OCEANOGRAPHER AT THE UNIVERSITY OF MARYLAND'S CHESAPEAKE BIOLOGICAL LABORATORY IT'S A MINDLESS COLLECTION OF DATA UNLESS SOMEONE IS GIVING CLEAR GUIDANCE OTHERS QUESTION THE QUALITY OF INFORMATION GATHERED SINCE VOLUNTEERS MAY HAVE LITTLE TRAINING MEASURING WATER TEMPERATURE CLARITY AND OXYGEN LEVELS ARE FAIRLY STRAIGHTFORWARD BUT SOME GROUPS ALSO CHECK FOR SOLVENTS HEAVY METALS AND OTHER INDUSTRIAL CONTAMINANTS MORE AND MORE I THINK THESE PROGRAMS HAVE PLAYED WITH THE IDEA OF BEING ABLE TO GET INTO CHEMICAL MEASUREMENTS THAT MAY BE A LITTLE LESS EASY SAYS JAMES SANDERS DIRECTOR OF THE ACADEMY OF NATURAL SCIENCES' BENEDICT ESTUARINE RESEARCH LABORATORY IN PHILADELPHIA I DON'T THINK THE REGULATORY AGENCIES ARE TAKING THEM TOO SERIOUSLY MANY MONITORING GROUPS HAVE TRIED TO COUNTER SUCH CRITICISM WITH TRAINING MANUALS AND OTHER QUALITYCONTROL MEASURES THE BALTIMOREBASED ALLIANCE FOR CHESAPEAKE BAY WITH ABOUT 150 VOLUNTEERS IN THREE STATES HAS NEW MONITORS UNDERGO A THREEHOUR TRAINING SESSION WITH A REFRESHER COURSE WITHIN FOUR MONTHS AND MANDATORY QUALITYASSURANCE SESSIONS WITH STAFF EVERY SIX MONTHS THEREAFTER BUT SOME REGULATORS STILL WORRY ABOUT THEIR AGENCIES' ABILITY TO CONTROL CITIZENS GROUPS THAT HAVE SOMETIMES FILED THEIR OWN LAWSUITS GONE TO THE MEDIA OR APPROACHED VIOLATORS ON THEIR OWN MOREOVER SOMETIMES THOSE GROUPS ARE SUING THE AGENCIES FOR FAILING TO DO A GOOD JOB OR BEATING THEM UP IN PUBLIC STATEMENTS SAYS MR PENDERGRASS OF THE ENVIRONMENTAL LAW INSTITUTE IN NORTHERN CALIFORNIA STATE AND FEDERAL ENVIRONMENTAL AGENCIES TOOK A PUBLICRELATIONS DRUBBING AFTER KAYAKRIDING VOLUNTEERS FROM SAN FRANCISCO BAYKEEPER A PRIVATE WATCHDOG GROUP GATHERED EVIDENCE OF ALLEGED ILLEGAL DREDGING AND TOXIC DUMPING BY A LOCAL SHIPYARD AND BEGAN HAULING REPORTERS TO THE SITE AFTER REGULATORS WERE SLOW TO RESPOND IN A RECENT PLEA AGREEMENT THE COMPANY AND TWO EXECUTIVES PLEADED GUILTY TO VARIOUS FEDERAL CHARGES IN CONNECTION WITH THE 1990 INCIDENT WHAT WE ARE TRYING TO DO IS REPLACE GOVERNMENT AGENCIES THAT ARE MANDATED TO DO THIS WORK AND DON'T DO IT SAYS BAYKEEPER FOUNDER MICHAEL HERZ THEY'RE STRAPPED BAYKEEPER IS TAKING PRIVATE INVOLVEMENT BEYOND VOLUNTEERISM NOW OPERATING WITH FIVE FULLTIME STAFFERS AND AN ANNUAL BUDGET OF 350000 MOSTLY FROM CORPORATE AND PRIVATE DONATIONS THE GROUP IS NOW TRYING TO PERSUADE THE EPA TO CONTRACT WITH IT FOR SOME INVESTIGATIVE AND ENFORCEMENT SERVICES IN THE BEST OF ALL POSSIBLE WORLDS WE WOULDN'T BE NEEDED SAYS MR HERZ BUT IN REALITY WE ARE GOING TO BE NEEDED FOR A LONG LONG TIME MONITORS GOVERNMENT ENFORCEMENT ACCEPTS GRANTS FOR RESEARCH PRODUCES TRAINING MATERIALS CONSTRUCTION CONTACTS DEVELOPERS LANDOWNERS AND POTENTIAL VIOLATORS HOLDS STATEWIDE WORKSHOPS AGENCY INVOLVES 3000 VOLUNTEERS FROM 75 GROUPS MONITORS TRAINING PROGRAM NEWSLETTER SCIENTIFIC CONFERENCES WATERWAYS WEEKLY EXTENSIVE MONITORTRAINING COURSES PRODUCES MANUALS AND HANDBOOKS 9307270129 930727 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JULY 23 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CAMBRIA COUNTY WILL REDEEM ON AUG 25 1993 THE FOLLOWING GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS SERIES 1977 DUE JAN 15 OF THE INDICATED YEAR 57 DUE 1995 AND 58 DUE 2000 UNITED STATES NATIONAL BANK JOHNSTOWN PA IS PAYING AGENT HYRDOQUEBEC WILL REDEEM ON AUG 19 1993 ITS 7 7/8 SERIES BX DEBENTURES DUE FEB 1 2002 AND 7 1/2 SERIES CC DEBENTURES DUE JAN 1 2003 BANK OF MONTREAL NEW YORK IS PAYING AGENT LANCASTER INDUSTRIAL DEVELOPMENT AUTHORITY CALLS FOR MANDATORY TENDER FOR PURCHASE IN LIEU OF REDEMPTION ON AUG 24 1993 ITS INDUSTRIAL DEVELOPMENT REVENUE REFUNDING BONDS SERIES 1987 DUE AFTER AUG 15 1993 MARINE MIDLAND BANK NEW YORK IS TRUSTEE MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY CALLS FOR MANDATORY TENDER FOR PURCHASE IN LIEU OF REDEMPTION ON AUG 24 1993 ITS INDUSTRIAL DEVELOPMENT REVENUE REFUNDING BONDS SERIES 1987 DUE AFTER AUG 15 1993 MARINE MIDLAND BANK NEW YORK IS TRUSTEE TEXARKANA TEXAS WILL REDEEM ON AUG 1 1993 ITS WATER AND SEWER SYSTEM REVENUE BONDS SERIES 1983 DUE ON AND AFTER AUG 1 1994 TEXARKANA NATIONAL BANK TEXARKANA TEXAS IS PAYING AGENT TEXARKANA MEDICAL FACILITIES CORP WILL REDEEM ON SEPT 1 1993 260000 PRINCIPAL AMOUNT OF ITS 825 FIRST MORTGAGE HOSPITAL REVENUE BONDS SERIES 1977 DUE SEPT 1 1996 STATE FIRST NATIONAL BANK TEXARKANA ARK IS TRUSTEE CITIZENS FEDERAL SAVINGS & LOAN ASSOCIATION WILL REDEEM ON SEPT 13 1993 ITS COLLATERALIZED FLOATING RATE NOTES DUE 1996 BANKERS TRUST CO NEW YORK IS TRUSTEE HOUSEHOLD INTERNATIONAL INC WILL REDEEM ON OCT 1 1993 ITS 11 1/4 ENHANCED RATE CUMULATIVE PREFERRED STOCK AND THE DEPOSITARY SHARES REPRESENTING A ONETENTH INTEREST IN SUCH PREFERRED STOCK HARRIS TRUST & SAVINGS BANK CHICAGO IS DEPOSITARY ILLINOIS BELL TELEPHONE CO A UNIT OF AMERITECH CORP WILL REDEEM ON AUG 9 1993 ITS 8 FIRST MORTGAGE BONDS SERIES J DUE JUNE 2 2005 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE 9307270128 930727 WHO'S NEWS EL PASO NATURAL GAS CO EL PASO NATURAL GAS CO EL PASO TEXAS NORMA F DUNN FORMERLY DIRECTOR OF MEDIA AND INVESTOR RELATIONS WAS MADE VICE PRESIDENT OF INVESTOR AND PUBLIC RELATIONS OF THIS PIPELINE CONCERN 9307270127 930702 POTOMAC WATCH MEA CULPA SOUTER MAY BE BUSH'S BLACKMUN BY PAUL A GIGOT IN THE SUMMER OF 1990 COLUMNIST ANTHONY LEWIS OF THE NEW YORK TIMES AND I BOTH PRAISED DAVID SOUTER'S NOMINATION TO THE SUPREME COURT THAT WAS THE FIRST HINT OF TROUBLE A FRIEND QUIPPED THAT ONE OF US WAS SURE TO BE DISAPPOINTED CONGRATULATIONS MR LEWIS THREE YEARS LATER I LOOK TO BE THE SAP THIS COLUMN IS AN ACT OF CONTRITION I THROW MYSELF ON THE MERCY OF MY READERS FOR ESPECIALLY AFTER THE TERM JUST ENDED JUSTICE SOUTER HAS EMERGED AS A NEW YORK TIMES JUDGE ONE GRADUALLY SHEDDING HIS CONFIRMATION POSE OF JUDICIAL RESTRAINT TO BECOME A JUSTICE WHO IS ARGUABLY MORE LIBERAL THAN BILL CLINTON'S NOMINEE RUTH BADER GINSBURG HE'S ON THE ROAD TO BEING GEORGE BUSH'S HARRY BLACKMUN A NIXON APPOINTEE ANOTHER REPUBLICAN GIFT TO LIBERALS IT'S SOME CONSOLATION THAT I WASN'T THE ONLY SUCKER TO SHARE MY CHAGRIN THIS WEEK I CALLED BACK THOSE SOURCES DISTINGUISHED LAWYERS ALL WHO IN 1990 HAD ASSURED ME ON DEEP BACKGROUND OF MR SOUTER'S SOLID LEGAL PRINCIPLES QUITE APART FROM WHO WINS OR LOSES HIS CONSTITUTIONAL REASONING HAS CLEARLY DISAPPOINTED MANY OF HIS SUPPORTERS IN THE PAST TWO ADMINISTRATIONS SAYS STEPHEN MARKMAN A DETROIT LAWYER WHO SCREENED NOMINEES INCLUDING MR SOUTER FOR THE REAGAN JUSTICE DEPARTMENT AND THE ONLY SOURCE WHO'LL NOW JOIN ME IN ONTHERECORD REMORSE WHAT A DISASTER WHAT AN UNMITIGATED DISASTER ADDS ANOTHER WHO INTERVIEWED MR SOUTER BACK THEN I'M SURPRISED SAYS A THIRD ONLY LAST YEAR A NEW MODERATE COALITION WAS SUPPOSED TO BE EMERGING TO BLOCK THE HIGH COURT'S ALLEGED CONSERVATISM BUT THE NEWS THIS YEAR REPORTED ONLY BY PAUL BARRETT OF THIS NEWSPAPER IS THAT THE CENTER SPLIT JUSTICE ANTHONY KENNEDY EDGED BACK TO THE RIGHT JUSTICE SANDRA DAY O'CONNOR WAS AS UNPREDICTABLE NOT TO SAY INCOHERENT AS EVER BUT JUSTICE SOUTER MOVED LEFT TOWARD LIBERAL JUSTICES BLACKMUN AND JOHN PAUL STEVENS THIS SOUTER SHIFT IS ALL THE MORE NOTABLE BECAUSE IT'S OCCURRING ACROSS THE CONSTITUTIONAL SPECTRUM INCLUDING SEVERAL OF THIS TERM'S FINAL CASES IN AN ANTITRUST CASE HARTFORD FIRE INSURANCE V CALIFORNIA HE BETRAYED A SHALLOW KNOWLEDGE OF BUSINESS IN OFFERING AN EXPANSIVE VIEW OF WHAT CONSTITUTES AN ECONOMIC BOYCOTT JUSTICE ANTONIN SCALIA'S MAJORITY BRIEF GAVE HIM AN ECONOMICS LESSON IN ST MARY'S HONOR CENTER V HICKS A SOUTER DISSENT MADE THE REMARKABLE ASSERTION THAT AN EMPLOYEE NEEDN'T PROVE DISCRIMINATION IF THE EMPLOYER LIED ABOUT WHY HE WAS FIRED JUSTICE SCALIA'S MAJORITY OPINION POINTED OUT THAT THE LAW WRITTEN BY CONGRESS STILL DEMANDS PROOF BUT MR SOUTER INDULGED HIS MORAL AFFLATUS FOR VICTIMS AND EVEN INVITED CONGRESS TO OVERTURN THE COURT HIS MORAL EXHIBITIONISM WAS ALSO ON DISPLAY IN CRIMINAL CASESFOR EXAMPLE IN WELCOMING DEATHPENALTY APPEALS MORE TROUBLING YET MR SOUTER HAS BEGUN TO SHOW THE ACTIVIST METHOD OF THE JUSTICEASLEGISLATOR IN HELLER V DOE HIS ASTONISHING DISSENT ARGUED FOR THROWING OUT A KENTUCKY LAW ON THE MENTALLY RETARDED FOR NO OTHER REASON THAN THAT HE DOESN'T MUCH LIKE IT THE DISSENT INCLUDES LOTS OF SOCIAL SCIENCE BUT VERY LITTLE LAW EVEN WHEN HE RESISTS LIBERAL LOGIC THE BUSH APPOINTEE OFTEN ENDORSES LIBERAL OUTCOMES ON OTHER GROUNDS IN SHAW V RENO WHICH BARRED BIZARRE VOTING DISTRICTS BASED ON RACE HIS DISSENT DODGED THE GREAT IDEAS AT STAKE AND INSTEAD HID BEHIND PRECEDENTS THIS EVASIVE BALANCING THE SOUTER SHUFFLE TO SOME REVEALS A JUSTICE GUIDED BY PERSONAL PREFERENCES NOT PRINCIPLES HOW DID THIS HAPPEN ONE VIEW IS THAT HE ARRIVED WITH UNFORMED VIEWS AND IS ADAPTING TO WASHINGTON'S DOMINANT LEGAL CULTURE WHICH FLATTERED HIM AFTER LAST YEAR'S LIBERAL DECISIONS ON ABORTION RELIGION AND PROPERTY RIGHTS COURT SOURCES SAY HE WORKED HARD THIS YEAR TO PERSUADE JUSTICE KENNEDY AND ESPECIALLY JUSTICE O'CONNOR TO CONTINUE THEIR ALLIANCE BUT OVERPLAYED HIS HAND ANOTHER THEORY IS THE INFLUENCE OF FORMER JUSTICE WILLIAM BRENNAN THE BRILLIANT AND CHARMING LIBERAL WHO RETAINS AN OFFICE AT THE HIGH COURT MR BRENNAN HAS GONE OUT OF HIS WAY TO SCHMOOZE MR SOUTER MUCH AS HE ONCE DID JUSTICE BLACKMUN A BRENNAN CLERK JULIUS GENACHOWSKI HELPED MR SOUTER THIS YEAR AND IS SET TO WORK FOR HIM NEXT YEAR OR PERHAPS JUSTICE SOUTER IS JUST SHOWING HIS TRUE COLORS AT LAST ONE OF HIS CLERKS THIS YEAR AND LAST WAS THE VERY LIBERAL PETER RUBIN A PROTEGE OF HARVARD'S LAURENCE TRIBE THE LESSONS HERE ARE SEVERAL ONE IS DON'T TRUST JOHN SUNUNU WHO WAS THE LOUDEST SOUTER ADVOCATE BUT WE ALREADY KNEW THAT ANOTHER IS NEVER NOMINATE SOMEONE WHO LACKS A WRITTEN RECORD ON CONSTITUTIONAL LAW MR SOUTER WAS A BLANK SLATE A THIRD IS THAT THE BEST JUSTICES HAVE HAD TO WITHSTAND POLITICAL PRESSURES THEY WON'T BE SWAYED BY HEADLINES FINALLY WORRY MORE ABOUT QUALITY THAN ABOUT THE RISKS OF A NOMINATION FIGHT DAVID SOUTER THE OBSCURE NEW HAMPSHIRE JUDGE WAS CHOSEN ONLY AFTER THE WHITE HOUSE DEEMED FEDERAL JUDGES LAURENCE SILBERMAN AND EDITH JONES TOO CONTROVERSIAL FOR THE DEMOCRATIC SENATE MR SOUTER SAILED THROUGH AND ALAS WE'RE NOW STUCK WITH WHAT GEORGE BUSH WAS WILLING TO PAY FOR SEE RELATED LETTER LETTERS TO THE EDITOR SOUTER JUDICIOUSLY TURNS FROM ACTIVISM WSJ JULY 27 1993 9307020004 YY93 MM07 9307270125 930727 DIAMOND SHAMROCK TERMINAL SAN ANTONIO TEXAS DIAMOND SHAMROCK INC SAID IT PLANS TO BUILD A REFINED PRODUCTS TERMINAL IN COLORADO SPRINGS COLO DIAMOND SHAMROCK ALSO SAID ITS 254MILE REFINED PRODUCTS PIPELINE CURRENTLY UNDER CONSTRUCTION WOULD BE EXTENDED TO DENVER IT HAD BEEN ORIGINALLY EXPECTED TO RUN FROM THE COMPANY'S MCKEE REFINERY IN THE TEXAS PANHANDLE TO THE COLORADO SPRINGS AREA THE PIPELINE INCLUDING THE EXTENSION IS TO BE COMPLETED BY THE END OF 1993 DIAMOND SHAMROCK SAID 9307270124 930727 ALBERTA ENERGY SELLS STAKE CALGARY ALBERTA ALBERTA ENERGY CO SAID IT SOLD ITS 10 STAKE IN COMINCO FERTILIZERS LTD TO A GROUP OF UNDERWRITERS FOR 268 MILLION CANADIAN DOLLARS US209 MILLION A SPOKESMAN FOR THE CALGARY OIL AND GAS COMPANY SAID THE STAKE WILL BE OFFERED TO THE PUBLIC IN THE FORM OF SPECIAL WARRANTS EXERCISABLE INTO 18 MILLION COMMON SHARES OF COMINCO FERTILIZERS COMINCO FERTILIZERS IS A PUBLICLY TRADED CALGARY FERTILIZER COMPANY 50 OWNED BY COMINCO LTD A METALS CONCERN IN VANCOUVER BRITISH COLUMBIA 9307270123 930727 WHO'S NEWS SAFEWAY INC SAFEWAY INC OAKLAND CALIF JULIAN DAY A 41YEAROLD MANAGEMENT CONSULTANT WAS NAMED CHIEF FINANCIAL OFFICER OF THIS GROCERY CHAIN HE SUCCEEDS MICHAEL A PHARR 52 WHO IS RESIGNING TO PURSUE OTHER INTERESTS 9307270122 930727 BUSINESS BRIEF SOUTHDOWN INC POSTS FIRST QUARTERLY PROFIT IN PAST THREE YEARS HOUSTON SOUTHDOWN INC A BELEAGUERED CEMENT AND CONCRETE PRODUCTS MAKER POSTED ITS FIRST QUARTERLY PROFIT SINCE 1990 AS A RESULT OF RECENT PRICE INCREASES IN THE CEMENT MARKET SOUTHDOWN EARNED 26 MILLION OR EIGHT CENTS A SHARE IN THE SECOND QUARTER IN CONTRAST TO A YEAREARLIER LOSS OF 7 MILLION OR 49 CENTS A SHARE REVENUE ROSE 58 TO 1444 MILLLION FROM 1365 MILLION ANALYSTS HAD BEEN EXPECTING A MODEST LOSS FOR SOUTHDOWN BUT JONATHAN GOLDFARB A MERRILL LYNCH ANALYST SAID HIGHER CEMENT PRICES HAD IMPROVED SOUTHDOWN'S OUTLOOK IN THE LAST FEW WEEKS THIS PROBABLY IS A TURNING POINT WHAT IS UNCERTAIN IS HOW RAPID THE UPTURN WILL BE HE SAID THE SECOND QUARTER IS TYPICALLY ONE OF THE STRONGER QUARTERS OF THE YEAR SO I WOULDN'T GO OVERBOARD CELEBRATING THE COMPANY SAID ALL OF ITS BUSINESS SEGMENTS REPORTED IMPROVED RESULTS BUT ONLY ITS CEMENT SEGMENT HAD OPERATING EARNINGS THE CONCRETE AND ENVIRONMENTAL SERVICES SECTORS POSTED OPERATING LOSSES IN APRIL SOUTHDOWN AVERTED A PROXY FIGHT WITH RICHARD C BLUM & ASSOCIATES INC THE SAN FRANCISCOBASED FINANCIAL ADVISORY FIRM WHICH CONTROLS 147 OF ITS SHARES BY EXPANDING ITS BOARD TO 12 MEMBERS FROM NINE ON THE NEW YORK STOCK EXCHANGE SOUTHDOWN SHARES HAD SLUMPED BELOW 10 BEFORE THE SETTLEMENT WITH BLUM BUT HAVE SINCE REBOUNDED IN TRADING YESTERDAY SOUTHDOWN GAINED 75 CENTS TO 17625 FOR THE SIX MONTHS SOUTHDOWN POSTED A LOSS BEFORE THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE OF 18 MILLION OR 26 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 144 MILLION OR 1 A SHARE THE COMPANY RECORDED A CHARGE OF 485 MILLION OR 286 A SHARE IN THE LATEST PERIOD FOR POSTRETIREMENT HEALTH CARE BENEFITS REVENUE ROSE TO 2505 MILLION FROM 2441 MILLION 9307270121 930727 WHO'S NEWS COMMERCE CLEARING HOUSE INC COMMERCE CLEARING HOUSE INC RIVERWOODS ILL WILLIAM C EGAN III 48 YEARS OLD PRESIDENT OF THE ARM & HAMMER DIVISION OF CHURCH & DWIGHT INC WAS NAMED TO THE BOARD OF THIS PROVIDER OF PRINT AND ELECTRONIC PUBLICATIONS FOR THE LEGAL AND ACCOUNTING BUSINESSES 9307270120 930727 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK TIME WARNER COMMUNICATIONS A NEW TELEPHONE ACCESS AND TELECOMMUNICATIONS UNIT OF THIS MEDIA AND ENTERTAINMENT COMPANY NAMED THOMAS J MORROW TO THE NEWLY CREATED POSITION OF PRESIDENT MR MORROW 46 YEARS OLD WAS VICE PRESIDENT OF U S WEST CABLE COMMUNICATIONS A UNIT OF U S WEST INC 9307270119 930727 WHO'S NEWS IMRS INC IMRS INC STAMFORD CONN TERENCE W ROGERS 51 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT A NEW POSITION AT THIS MAKER OF FINANCIAL MANAGEMENT SOFTWARE MR ROGERS HAD BEEN VICE PRESIDENT AT LOTUS DEVELOPMENT CORP 9307270118 930727 WHO'S NEWS GREAT WESTERN FINANCIAL CORP GREAT WESTERN FINANCIAL CORP CHATSWORTH CALIF STEPHEN E FRANK 51 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF FPL GROUP INC'S FLORIDA POWER & LIGHT CO UNIT WAS NAMED A DIRECTOR OF THIS THRIFT HOLDING COMPANY HE SUCCEEDS MARTIN FELDSTEIN A PROFESSOR OF ECONOMICS AT HARVARD WHO RESIGNED TO PURSUE OTHER INTERESTS 9307270117 930727 ONE WAY OR ANOTHER OF COURSE ALL THE REPLIES WERE FOR THE BIRDS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL EMPIRE KOSHER POULTRY INC IS CLAIMING FOUL PLAY OVER SOME RESPONSES TO ITS OFFER OF FREE FOWL FOR TAXAUDIT SUFFERERS THE MIFFLINTOWN PA COMPANY BEGAN THE OFFER IN APRIL TO PROMOTE ITS CLAIM THAT EMPIRE'S INSPECTORS CONDUCT TOUGHER AUDITS ON CHICKENS THAN THE INTERNAL REVENUE SERVICE DOES ON INCOMETAX RETURNS WE'RE PROUD THAT OUR 70 RABBINICAL INSPECTORS EXAMINE OUR CHICKENS AT LEAST THREE TIMES FOR 40 ABNORMALITIES SUCH AS BROKEN BONES OVERLOOKED BY US AGRICULTURE DEPARTMENT INSPECTORS SAYS BIRGITTA WADE ADVERTISING DIRECTOR THE TERMS OF THE CONTINUING OFFER ARE CLEAR ANYONE BEING AUDITED THIS YEAR CAN COPY THE IRS LETTER BLACKING OUT SENSITIVE DATA AND MAIL IT TO EMPIRE WHICH THEN SENDS THE TAXPAYER A SUPERMARKET COUPON FOR A FREE CORNISH HEN VALUED AT ABOUT 6 EMPIRE QUICKLY FOUND OUT THAT SOME FOLKS WILL REALLY PLUCK AT THEIR IMAGINATIONS TO GET A FREE CHICKEN SUSAN GRANT EMPIRE'S CUSTOMERRELATIONS MANAGER SAYS WE'VE GOTTEN ABOUT 340 RESPONSES AND BELIEVE IT NOT SOME PEOPLE SENT IN JUST W2S AND OTHERS SENT IN IRS NOTICES THAT THE TAXPAYER MADE A MISTAKE AND EITHER OWED OR WAS OWED MORE THAN THE ORIGINAL FILING AMONG THE BIRDBRAINED ATTEMPTS WAS ONE BY A NEW JERSEY TAXPAYER AUDITED YEARS AGO WHO DECIDED TO WING IT BY SENDING IN THE IRS'S FINAL DECISION IT WAS HANDED DOWN THIS YEAR MRS GRANT NOTES ANOTHER TAXPAYER WILLIAM A PETERS A RETIRED TEACHER FROM SANDWICH MASS SENT IN AN IRS AUDIT NOTICE FROM 1957 MR PETERS SAYS THAT EVEN THOUGH HIS AUDIT OCCURRED 36 YEARS AGO HE THOUGHT HE QUALIFIED FOR A FREE CHICKEN AFTER READING ABOUT THE OFFER IN A CAPE COD NEWSPAPER I EAT MOSTLY FISH HE SAYS BUT I'D LOVE TO TASTE A CORNISH HEN WITH MOST REQUESTS THAT FAIL TO QUALIFY MRS GRANT MAKES NO BONES ABOUT IT I WASN'T GOIN TO SEND THEM A CHICKEN IF THEY WEREN'T AUDITED THIS YEAR SHE SAYS AFTER ALL SHE ADDS A MAJOR DOGFOOD MAKER RECENTLY DENIED HER FREE DOG FOOD JUST BECAUSE ONE OF HER PROOFS OF PURCHASE WAS FOR A LARGER SIZE THAN SPECIFIED HOWEVER MRS GRANT CHICKENED OUT IN THE CASE OF MR PETERS EMPIRE WILL GIVE HIM A FREE HEN SHE SAYS BECAUSE HIS ANCIENT AUDIT LETTER WAS FASCINATING IN IT THE IRS MAKES FIVE THREATS TO DOCK HIS PAY FOR A MERE 743 DELINQUENCY CAN YOU IMAGINE SHE ASKS THE IRS BEING THAT TOUGH OVER SUCH A LITTLE THING IT DOES SEEM LIKE ER CHICKEN FEED 9307270116 930727 TECHNOLOGY ITT FINANCIAL CORP PLANNING SINGLEPRICE REPURCHASE OF DEBT NEW YORK ITT FINANCIAL CORP ANNOUNCED A SINGLE PRICE OFFER TO REPURCHASE UP TO 45 OF AN OUTSTANDING 27 BILLION IN NOTE AND DEBENTURE ISSUES IN ORDER TO REDUCE INTEREST COSTS THE ITT CORP UNIT SAID ALL SECURITIES OF EACH SERIES REPURCHASED WILL BE AT THE SAME PRICE AN OFFER SIMILAR TO A DUTCH AUCTION IN WHICH SELLERS SET A PRICE THEY'RE WILLING TO ACCEPT AND THE BUYER PICKS THE LOWEST PRICE THE DEALER MANAGER FOR THE OFFER IS GOLDMAN SACHS & CO A NEW YORK INVESTMENT BANKING FIRM THE ITT UNIT HAS 97 BILLION OF DEBT INCLUDING 42 BILLION OF PUBLIC DEBT A SPOKESMAN SAID THE ISSUES BEING REPURCHASED ARE TRADING ABOVE FACE VALUE AND THAT THE OFFER WOULD RESULT IN A CHARGE TO EARNINGS WE DO NOT EXPECT IT TO EXCEED THE REALIZED GAIN OF 95 MILLION BEFORE TAXES EXPECTED FROM THE OFFER HE SAID THE COMPANY SOLD ITS DOMESTIC UNSECURED CONSUMER LOAN PORTFOLIO FOR ABOUT 17 BILLION TO A CONSORTIUM LED BY GOLDMAN SACHS ON JUNE 3 THE PROCEEDS WERE USED TO BUY COMMERCIAL PAPER WHICH WILL BE ISSUED TO PAY FOR THE DEBENTURES AND NOTES IN THE CURRENT OFFER EARLIER THIS YEAR ITT ANNOUNCED PLANS TO TRANSFORM ITS FINANCIAL OPERATIONS ESPECIALLY THE CONSUMER LOAN BUSINESS WITH EMPHASIS MOVING TOWARD HOME EQUITY AND OTHER SECURED LENDING 9307270115 930727 WHO'S NEWS GEORGIAPACIFIC CORP GEORGIAPACIFIC CORP ATLANTA M DOUGLAS IVESTER AND LOUIS W SULLIVAN WERE ELECTED TO THE COMPANY'S BOARD INCREASING THE NUMBER OF DIRECTORS TO 16 MR IVESTER 46 YEARS OLD IS EXECUTIVE VICE PRESIDENT AND PRINCIPAL OPERATING OFFICER/NORTH AMERICA OF COCACOLA CO HE'S ALSO THE PRESIDENT OF COCA COLA USA MR IVESTER SUCCEEDS F JAMES MCDONALD 70 WHO RETIRED FROM THE BOARD DR SULLIVAN 59 IS PRESIDENT OF THE MOREHOUSE SCHOOL OF MEDICINE IN ATLANTA AND FILLS A NEW SEAT ON THE BOARD HE WAS US SECRETARY OF HEALTH AND HUMAN SERVICES FROM 1989 TO 1992 9307270114 930727 PEPPERAND SALT THE BABOON LIVER TRANSPLANT A SUCCESS THE WORLD OF MEDICINE AGREES THE PROBLEM THEY DIDN'T ANTICIPATE THE PATIENT KEEPS CLIMBING TREES HUG A BALDING MAN TODAY BEFORE THE GUYS WITH HAIR EATS FISH WITHOUT TARTAR 9307270113 930727 WHO'S NEWS RR DONNELLEY & SONS CO RR DONNELLEY & SONS CO CHICAGO STEVEN J BAUMGARTNER 42YEAROLD COFOUNDER OF FRC INC WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT HUMAN RESOURCES COMPENSATION AND BENEFITS SERVICES OF THIS PRINTING CONCERN 9307270112 930727 LETTERS TO THE EDITOR IQ TESTS NEVER MEASURE COMMON SENSE YOUR JUNE 25 POLITICS & POLICY ARTICLE ON PRESIDENTS' INTELLIGENCE STRUCK AN ALREADY IRRITATED NERVE IN MY PSYCHE PROBABLY BECAUSE I HAVE NEVER BEEN ANOINTED AS A SCHOLAR OR A MENSA CANDIDATE IQ INTELLIGENCE QUOTIENT HAS LITTLE TO DO WITH LOGICALMATHEMATICAL INTELLIGENCE IQ IS USUALLY MEASURED BY A SOCIALLY DETERMINED SET OF QUESTIONS THAT MAY OR MAY NOT HAVE ANY RELATIONSHIP TO HOW SMART A PERSON IS WORSE IQ NEVER MEASURES THE ABSOLUTELY CRITICAL MEASURE OF INTELLIGENCE COMMON SENSE SMARTS ARE BEST MEASURED BY ACTIONS TAKEN TO SOLVE PROBLEMS NOT WORDS SPOKEN ABOUT THE PROBLEM BY THAT MEASURE PRESIDENT CLINTON LIKE FORMER PRESIDENT CARTER GETS A FAILING GRADE USING FRANKLIN ROOSEVELT AS A PRESIDENTIAL EXAMPLE OF STREET SMARTS MAY BE LESS APT THAN USING LYNDON JOHNSON AS PRESIDENT JOHNSON WAS ABLE TO PUSH THROUGH LEGISLATION AND ACCOMPLISH MUCH OF WHAT HIS MORE CHARISMATIC AND ALLEGEDLY MORE BRILLIANT PREDECESSOR WAS UNABLE TO DO WHY PROBABLY BECAUSE HE HAD STREET SMARTS IN DEALING WITH PROBLEMS AND KNEW HOW TO SWAY PEOPLE'S JUDGMENT PRESIDENT CLINTON HAS BEEN REPEATEDLY REFERRED TO IN THE PRESS AS A RHODES SCHOLAR AS IF HAVING WON A RHODES SCHOLARSHIP WAS SOME INCREDIBLE AND REMARKABLE INTELLECTUAL ACHIEVEMENT THIRTYTWO RHODES SCHOLARSHIPS ARE AWARDED ANNUALLY IN THIS COUNTRY FOR POSTGRADUATE STUDY IN OXFORD THEY ARE AWARDED TO COLLEGE STUDENTS WHO FILL OUT AN APPLICATION PLAY SOME COLLEGE SPORT AND HAVE SOME SPONSOR WHO KNOWS HOW TO POLITIC THE RIGHT FOLK THE ARTICLE ABOUT PRESIDENTIAL INTELLIGENCE POINTS OUT HOW WRONG THE CONVENTIONAL WISDOM CAN BE THERE NEVER HAS BEEN ANY RELATIONSHIP BETWEEN HIGH IQ AND SUCCESS IN LIFE OR FUNCTIONING AT A HIGH LEVEL IQ TESTING IS ONLY USEFUL FOR EVALUATING PEOPLE WITH BELOWAVERAGE INTELLIGENCE SUPERIOR FUNCTIONING IS TOO COMPLEX AND DOES NOT CORRELATE WITH HIGH IQ SCORES HIGH IQ ONLY PREDICTS THE ABILITY TO MAKE GOOD GRADES IN SCHOOL HOWEVER NUMEROUS STUDIES HAVE BEEN DONE OVER THE YEARS AND THERE IS NO RELATIONSHIP BETWEEN GOOD GRADES AND LEVEL OF FUNCTIONING FOR INSTANCE THERE IS NO RELATIONSHIP BETWEEN A PERSON'S MEDICAL SCHOOL CLASS RANK AND HOW GOOD A PHYSICIAN HE OR SHE BECOMES THE SAME HOLDS TRUE FOR ENGINEERS INTERESTINGLY THE PEOPLE IN THE VARIOUS HIGHIQ SOCIETIES LOOK NO DIFFERENT FROM ANY OTHER RANDOMLY CHOSEN GROUP OF PEOPLE WITH AVERAGE INTELLIGENCE WITH RESPECT TO THEIR LEVEL OF FUNCTIONING WE ARE FOOLED BY HIGH IQS AND INTELLIGENCE OVER AND OVER IT IS OVERRATED JANET RENO SEEMS TO THINK THAT ENOUGH EXPERTS CAN FIGURE OUT AND PREVENT THE NEXT WACOTYPE DISASTER THERE ARE NO EXPERTS IN THE WORLD WHO CAN POSSIBLY DO THIS MANY PEOPLE OPERATE UNDER THE DELUSION THAT ALL THE KING'S HORSES AND ALL THE KING'S MEN CAN SOLVE ANY PROBLEM THE OTHER QUESTION THAT RELATES TO THIS ISSUE IS WHAT IS THE SINGLE MOST IMPORTANT FACTOR IN THE ABILITY TO SOLVE PROBLEMS IS IT HIGH IQ CREATIVITY DILIGENCE HARD WORK NO THE SINGLE MOST IMPORTANT FACTOR IS EXPERIENCE AS YOU STATED IN YOUR ARTICLE SOME OF THE MOST SUCCESSFUL PRESIDENTS HAVE HAD CONSIDERABLE EXPERIENCE IN RUNNING LARGE ORGANIZATIONS THE OTHER POINT IS THAT REGARDLESS OF HOW INTELLIGENT ANYONE IS IT IS HUMANLY IMPOSSIBLE TO UNDERSTAND THE COMPLEXITY OF MILLIONS OF HUMANS INTERACTING PEOPLE WHO TRY THIS ARE CONSISTENT IN THEIR FAILURE THIS IS WHY CONTROL FROM THE TOP OR MICROMANAGEMENT FROM THE TOP ALWAYS FAILS AND USUALLY MAKES THINGS WORSE UNFORTUNATELY THE PRESIDENT'S MAIN JOB IS TO CONTROL THINGS FROM THE TOP AND IF THERE IS TOO MUCH MICROMANAGEMENT THE WHOLE SYSTEM IS ADVERSELY AFFECTED THE COUNTRY WOULD BENEFIT ENORMOUSLY IF MR CLINTON WOULD READ THE FATAL CONCEIT TWO OR THREE TIMES YOUR ARTICLE IS HIGHLY PARTISAN AND BIASED IT MENTIONS ONLY RECENT DEMOCRATIC PRESIDENTS WHO HAVE BEEN WELLEDUCATED BUT INEFFECTIVE JIMMY CARTER AND BILL CLINTON CERTAINLY RECENT REPUBLICAN PRESIDENTS GERALD FORD UNIVERSITY OF MICHIGAN YALE LAW SCHOOL AND GEORGE BUSH YALE UNIVERSITY WHERE HE EARNED A BACHELOR'S DEGREE IN ECONOMICS FIT THIS BILL TOO MEANWHILE THE ARTICLE'S STREET SMART EFFECTIVE MODERN CHIEF EXECUTIVES ARE TWO REPUBLICANS DWIGHT EISENHOWER AND RONALD REAGAN BUT DID NOT IKE'S WEST POINT DIPLOMA CONSTITUTE AN ELITE EDUCATION AND SHOULD NOT DEMOCRAT LYNDON JOHNSON WHO GRADUATED FROM OBSCURE SOUTHWEST TEXAS STATE TEACHERS COLLEGE BUT DID ATTEND GEORGETOWN UNIVERSITY LAW SCHOOL SCHOOL FOR ONE YEAR DEFINITELY BE INCLUDED IN THE STREET SMART EFFECTIVE GROUP 9307270111 930727 WHO'S NEWS ALLIED HEALTHCARE PRODUCTS INC ALLIED HEALTHCARE PRODUCTS INC ST LOUIS EARL R REFSLAND PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS MAKER OF MEDICAL GAS EQUIPMENT AND RESPIRATORY THERAPY PRODUCTS RESIGNED TO PURSUE OTHER INTERESTS HE WILL BE SUCCEEDED ON AN INTERIM BASIS BY JAMES C JANNING AN ALLIED DIRECTOR AND PRESIDENT OF HARBOUR GROUP WHICH HOLDS A 20 STAKE IN THE COMPANY 9307270110 930727 LETTERS TO THE EDITOR SOUTER JUDICIOUSLY TURNS FROM ACTIVISM PAUL GIGOT'S JULY 2 POTOMAC WATCH COLUMN ME CULPA SOUTER MAY BE BUSH'S BLACKMUN BEMOANS JUSTICE DAVID SOUTER'S REPUTED TURN TO THE LEFT BUT MR GIGOT MAKES THE UNFORTUNATE ERROR OF ASSESSING JUDGES LIKE POLITICIANS IF ONE EXAMINES JUSTICE SOUTER WITH THE PROPER PROFESSIONAL AND LEGAL STANDARDS ONE DISCOVERS THAT HE HAS NOT SO MUCH TURNED TO THE LEFT BUT RATHER HAS TURNED AWAY FROM ACTIVITIST JUDGING GENERALLY JUSTICE SOUTER HAS ASSUMED A POSTURE THAT PRECEDENT IS HIGHLY PERSUASIVE AND JUDICIAL EXPERIMENTATION IS USUALLY INAPPROPRIATE ON OCCASION HE HAS OPTED FOR NEW JUDICIAL INTERPRETATIONS BUT MORE OFTEN THAN NOT HE FOLLOWS THE GROUND RULES ESTABLISHED BY PAST DECISION SINCE SO MANY OF THESE PAST DECISIONS ARE PRODUCTS OF THE BURGER AND WARREN COURTS JUSTICE SOUTER APPEARS TO BE SUPPORTING LIBERAL RESULTS WHEN HE IS SIMPLY SHUNNING CREATIVITY AND FOLLOWING PRECEDENT THIS IS CERTAINLY A DIFFERENT KIND OF CONSERVATISM FROM THAT OF THE REHNQUISTTHOMASSCALIA TRIO BUT IT IS A BRAND OF CONSERVATISM NONETHELESS MR GIGOT'S FEAR THAT JUSTICE SOUTER WILL BE ANOTHER BLACKMUN IS UNFOUNDED ON OTHER GROUNDS WHEN JUSTICE BLACKMUN JOINED THE COURT MOST OF THE SITTING JUSTICES WERE PRODUCTS OF THE WARREN ERA AND THEY CONTINUED TO CHERISH THE ROLE OF THE SOCIAL CRUSADER DURING HIS FIRST THREE YEARS ON THE COURT JUSTICE BLACKMUN REMAINED IMMUNE TO THEIR INFLUENCE VOTING SO OFTEN WITH CHIEF JUSTICE BURGER THAT THE TWO WERE KNOWN AS THE MINNESOTA TWINS BUT A COMBINATION OF COLLEGIAL ENCOURAGEMENT AND DISILLUSIONMENT WITH JUSTICE BURGER'S STYLE DROVE JUSTICE BLACKMUN INTO THE ACTIVIST CAMP CLEARLY JUSTICE SOUTER OPERATES IN A VERY DIFFERENT ENVIRONMENT MOST OF THE CURRENT JUSTICES REJECT THE LONE RANGER STYLE OF THE WARREN AND BURGER COURTS AND AVOID ANY HINT OF A RETURN TO THE IMPERIAL JUDICIARY MOREOVER IN THE 1990S THE CHORUS FOR JUDICIAL ACTIVISM IS LESS POPULAR AND LESS PERSUASIVE THAN IT WAS 25 YEARS AGO THUS ALL THE INSTITUTIONAL AND SOCIAL FORCES INFLUENCING JUSTICE SOUTER ARE PUSHING HIM TO AVOID BLACKMUNLIKE ACTIVISM IN FAVOR OF CAREFUL PRECEDENTBOUND JUDGING 9307270109 930727 REVIEW & OUTLOOK EDITORIAL HOUSE OF CARDS TWO LESSONS IN WHAT PASSES FOR ETHICAL CANDOR IN THE MODERN CONGRESS HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI CALLED A PRESS CONFERENCE SATURDAY TO PROCLAIM HIS INNOCENCE IN THE HOUSE POST OFFICE SCANDAL THEN WALKED OUT WITHOUT ANSWERING ANY PRESS QUESTIONS MEANWHILE SPEAKER OF THE HOUSE TOM FOLEY ANNOUNCED SUNDAY THAT HE WAS SEVERING TIES TO AN INVESTMENT ADVISER/FRIEND WHO HAD EARNED HIM 100000 OVER FOUR YEARS INVESTING IN HARDTOCOMEBY STOCK OFFERINGS MR ROSTENKOWSKI ADDED NOTHING TO WHAT HE SAID A YEAR AGO WHEN HE WAS SO ADAMANT THAT NOTHING WAS AMISS THAT HE AND TWO CONGRESSIONAL COLLEAGUES SAID THEY WERE GOING TO EXERCISE THEIR FIFTH AMENDMENT RIGHTS AND DECLINE TO TESTIFY THE SUBPOENAS FOR US ARE THE PRODUCT OF AN OVERALL FISHING EXPEDITION IN AN ELECTION YEAR THEY WROTE TO THE REPUBLICANAPPOINTED US ATTORNEY JAY STEPHENS WE DECLINE TO LEND ANY CREDENCE TO AN INQUIRY THAT LACKS CREDIBILITY AND SHOULD BE PROMPTLY CLOSED THEY WERE BACKED BY THE HOUSE LEADERSHIP WHICH SPONSORED A TASK FORCE THAT FOUND NOTHING AMISS THERE WAS NOT CREDIBLE EVIDENCE THAT ANY MEMBER OF THE HOUSE OF REPRESENTATIVES VIOLATED ANY RULE OF THE HOUSE OR ANY LAWS DECLARED CHARLIE ROSE CHAIRMAN OF THE HOUSE ADMINISTRATION COMMITTEE MR ROSTENKOWSKI CLAIMED TOTAL EXONERATION A YEAR LATER THE ELECTION IS OVER AND AN INCOMING DEMOCRATIC ADMINISTRATION TOOK THE UNPRECEDENTED STEP OF ANNOUNCING THE DISMISSAL OF ALL US ATTORNEYS BUT THE POST OFFICE INVESTIGATION CONTINUED UNDER A CAREER PROSECUTOR INTERIM US ATTORNEY RAMSEY JOHNSON THE FORMER HOUSE POSTMASTER ROBERT ROTA HAS NOW COPPED A PLEA WHILE ACCUSING MR ROSTENKOWSKI AND A FORMER CONGRESSMAN OF EMBEZZLEMENT ANOTHER WITNESS FORMER ROSTENKOWSKI AIDE JAMES SMITH IS QUOTED AS SAYING MR ROTA TOLD HIM THAT HE HAD SWAPPED STAMPS FOR CASH FOR MR ROSTENKOWSKI THE WAYS AND MEANS CHAIRMAN SIMPLY REPEATS HIS IMPERIOUS DENIALS INDEED MR ROSTENKOWSKI IS BEING TREATED WITHIN THE BELTWAY ALMOST AS A FIGURE OF SYMPATHY A MAN TRAPPED BETWEEN OLD PATRONAGE AND NEW ETHICS WHY WOULD HE CARE ABOUT A MERE 21000 IN POST OFFICE CASH YET A PROFILE OF THE CHAIRMAN'S FINANCES IN THE JUNE 5 CONGRESSIONAL QUARTERLY REVEALS A MAN WHO LONG AGO BLURRED ALL DISTINCTIONS BETWEEN HIS PRIVATE AND PUBLIC LIVES BETWEEN PERSONAL AND CAMPAIGN INCOME IN ONLY THE FIRST TWOANDAHALF MONTHS OF 1990 CQ REPORTS MR ROSTENKOWSKI CHARGED HIS CAMPAIGN AND A PAC HE CONTROLS 4837 FOR RESTAURANT DINNERS ALONE AS FOR MR FOLEY HE TOO DISMISSED REPORTS ABOUT HIS SWEETHEART STOCK PURCHASES WHEN THEY FIRST CAME TO LIGHT IN 1988 HE DID SO AGAIN LAST MONTH WHEN THEY WERE EXPANDED UPON BY ROLL CALL ONLY AFTER THIS PAGE PUBLICIZED THEM AMID CHAIRMAN ROSTENKOWSKI'S PROBLEMS DID THE SPEAKER TAKE ACTION TO LIMIT HIS PROFITS MR FOLEY NOW SAYS HE'S SEVERING TIES WITH FRIEND PETER DE ROETTH TO PRESERVE THE INTEGRITY OF HIS OFFICE YET THIS STILL LEAVES OPEN QUESTIONS ABOUT THE MOTIVES OF THE BIG INVESTMENT BANKS WHO ISSUED HOT STOCKS TO MR DE ROETTH WHO COULD THEN PASS THEM ALONG TO MR FOLEY NOW BOTH MR ROSTENKOWSKI AND MR FOLEY MUST BE PRESUMED INNOCENT BUT DOES ANYONE DOUBT WHAT POLITICAL UPROAR THERE'D BE IF SIMILAR EVENTS SURROUNDED SAY SOMEONE IN THE REAGAN WHITE HOUSE A SPECIAL PROSECUTOR WOULD ALREADY BE EMPANELED AMID CRIES OF COVERUP INDEED IN THE HOUSE POST OFFICE INVESTIGATION THE US ATTORNEY'S OFFICE HAS ALREADY ASKED ABOUT FILES THAT ARE MISSING FROM RECORDS TURNED OVER TO PROSECUTORS INCLUDING MR ROTA'S CORRESPONDENCE WE ARE WAITING FOR SOMEONE TO COMPARE THIS TO FAWN HALL'S SHREDDING OF DOCUMENTS FOR OLLIE NORTH AND IF THESE WERE REPUBLICAN WHITE HOUSE OFFICIALS THE RECORD WOULD BE SCOURED FOR POSSIBLE CRIMINAL VIOLATIONS MR FOLEY NEVER BOTHERED TO REPORT THAT HIS INVESTMENT ADVISER WAIVED A USUAL 1 ADVISORY FEE THAT HE NOW SAYS HE'LL PAY RETROACTIVELY WAS THIS AN IMPROPER GIFT UNDER HOUSE RULES THIS AFTER ALL IS A STANDARD THAT MR FOLEY AND HIS FELLOW DEMOCRATS HAVE ENFORCED FOR OTHERS THEY UNLEASHED SPECIAL PROSECUTORS ON THEIR ENEMIES THEN WENT ON TV TO EXPOUND ON PUBLIC INTEGRITY WE WOULD LIKE TO SEE FURTHER INVESTIGATION HOW MANY OTHER CONGRESSMEN GOT HOT STOCKS FOR EXAMPLE BUT WHO WOULD CONDUCT SUCH AN INVESTIGATION WE SCARCELY NEED ANOTHER CONGRESSIONAL SELFWHITEWASH LIKE MR ROSE'S POST OFFICE TASK FORCE THE SEC IS BEHOLDEN TO CONGRESS FOR ITS BUDGET WITH THE ADMINISTRATION BEHOLDEN TO BOTH MR FOLEY AND MR ROSTENKOWSKI FOR ITS BUDGET DEAL WOULD WEBSTER HUBBELL AT JUSTICE HEAD THE PROBE WELL MR JOHNSON COULD SHOW THAT THE FIX ISN'T IN BY ACTUALLY REQUIRING MR ROSTENKOWSKI TO APPEAR BEFORE THE GRAND JURY AND TAKE THE FIFTH IN PERSON AN UNPLEASANTRY HE WAS SPARED BY MR STEPHENS MEANWHILE THE CITIZENS OF THE NATION CAN PONDER WHETHER OUR SYSTEM HAS SOMEHOW BRED A NEW ARISTOCRACY WHETHER THE KINGS OF CONGRESS CONSIDER THEMSELVES ABOVE THE LAW 9307270108 930727 NORTHWEST AIRLINES MACHINISTS APPEAR TO BE BACKING REVISED CONCESSIONS PLAN BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL BLOOMINGTON MINN FACED WITH THE THREAT OF AN IMMEDIATE BANKRUPTCYLAW FILING BY NORTHWEST AIRLINES MACHINISTS APPEARED TO BE VOTING TO APPROVE THE REVISED CONCESSIONS PACKAGE THAT THE CARRIER SAID IT NEEDS TO WIN DEBT RESTRUCTURING FROM ITS LENDERS UNION LEADERS SAID RESULTS OF THE VOTING AREN'T EXPECTED TO BE DISCLOSED UNTIL TOMORROW BUT OFFICIALS OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS SAID THEY WERE CONFIDENT LAST MONTH'S OVERWHELMING REJECTION OF A SIMILAR PROPOSAL WON'T BE REPEATED PEOPLE NOW HAVE AN APPRECIATION FOR THE GRAVITY OF THE SITUATION SAID MIKE HURLEY PRESIDENT OF THE UNION LOCAL IN MINNEAPOLIS ST PAUL BY FAR THE LARGEST AT THE AIRLINE THE LOCAL LAST MONTH SOUNDLY DEFEATED THE FIRST PACKAGE ALTHOUGH THE MACHINISTS UNION AND NORTHWEST ALSO WERE OPTIMISTIC BEFORE THE PREVIOUS AGREEMENT WAS TROUNCED INTERVIEWS WITH DOZENS OF MACHINISTS MEMBERS HERE YESTERDAY SUGGESTED THAT OPINIONS HAVE SHIFTED FROM LAST MONTH MANY WHO VOTED YES SAID THEY HAD OPPOSED THE PREVIOUS AGREEMENT OR HADN'T VOTED IN JUNE I CAN'T AFFORD TO BE OUT OF A JOB SAID JUDY WILSON EXPLAINING WHY SHE DEPOSITED A BALLOT MARKED YES INTO ONE OF FOUR STEEL BALLOT BOXES HERE AT THE THUNDERBIRD HOTEL MS WILSON A SINGLE PARENT WITH A 10YEAROLD DAUGHTER SAID A THREEYEAR 9 CUT IN HER 801 HOURLY PAY AS A COLLECTION CLERK IS BETTER THAN THE PROSPECT OF BEING LAID OFF OR ENDURING AN EVEN LARGER PAY CUT DISTINCT POSSIBILITIES IF NORTHWEST FILES FOR BANKRUPTCY PROTECTION NORTHWEST WHICH BEGAN TO LOSE MONEY SHORTLY AFTER ALFRED CHECCHI AND GARY WILSON TOOK OVER THE COMPANY IN A 365 BILLION LEVERAGED BUYOUT IN 1989 SAID THE LABOR CONCESSIONS ARE REQUIRED BY LENDERS IN EXCHANGE FOR THEIR DEFERRALS OF BIG DEBT PAYMENTS DUE STARTING NEXT YEAR WITH THE UNION AND THE COMPANY HAMMERING HOME THE BANKRUPTCY THREAT THOUSANDS OF MACHINISTS YESTERDAY STREAMED INTO THE THUNDERBIRD'S CONFERENCE ROOM AND TO OTHER POLLING PLACES AROUND THE COUNTRY TURNOUT WAS HIGH IN DETROIT MEMPHIS AND ATLANTA OTHER BIG NORTHWEST BASES UNION OFFICIALS SAID ADDING THAT THEY TOOK THAT AS A GOOD SIGN THAT THE PACKAGE WILL BE APPROVED OFFICIALS AT NORTHWEST THE ST PAUL UNIT OF CLOSELY HELD WINGS HOLDINGS INC ALSO EXPRESSED OPTIMISM AND GAVE SOME WORKERS TIME OFF TO HEAD TO THE THUNDERBIRD WHICH IS A FEW BLOCKS FROM THE AIRLINE'S GIANT MAINTENANCE HANGARS IF THE MACHINISTS APPROVE THE PACKAGE THE BIGGEST STUMBLING BLOCK TO NORTHWEST'S PLAN TO CUT LABOR COSTS BY 886 MILLION OVER THREE YEARS WILL BE REMOVED FLIGHT ATTENDANTS REPRESENTED BY THE TEAMSTERS UNION ARE WIDELY EXPECTED TO APPROVE THEIR CONCESSIONS PACKAGE IN A SEPARATE MAILBALLOT VOTE WHEN RESULTS ARE ANNOUNCED LATE THIS WEEK THE PILOTS HAVE ALREADY APPROVED THEIR PORTION OF GIVEBACKS I THINK THE UNION HAS PROBABLY DONE THE BEST IT COULD UNDER THE CIRCUMSTANCES SAID CHUCK RAUTIOLA A MECHANIC WHO FACES A 12 CUT IN HIS 22 HOURLY WAGE THE MECHANICS ARE CONSIDERED THE MOST MILITANT AMONG THE UNION'S 23000 MEMBERS AT NORTHWEST ALTHOUGH THE AIRLINE'S EMPLOYEES COULD GET AS MUCH AS 375 OF THE CARRIER'S STOCK IN RETURN FEW EXPRESSED EXCITEMENT AT THAT PROSPECT THEY DIDN'T WANT US TO OWN ANY WHEN THEY WERE MAKING MONEY SAID ROGER BACKMAN A MACHINIST WHO NEVERTHELESS SWITCHED TO A YES VOTE IN THE SECOND BALLOT MACHINISTS FACE GIVEBACKS TOTALING 346 MILLION BUT THE REVISED AGREEMENT CONTAINS SWEETENERS SUCH AS AN EARLYRETIREMENT PROGRAM AN ENHANCED FREETRAVEL PROGRAM AND A GREATER VOICE IN HOW THE AIRLINE SUBCONTRACTS OUT THEIR WORK ADMITTING THEY MADE MISTAKES LAST TIME UNION OFFICIALS WORKED HARD TO SELL THE REVISED PACKAGE THEY PHONED AND VISITED MEMBERS TO ANSWER THEIR QUESTIONS THEY HIRED A SHUTTLE BUS TO TAKE WORKERS TO THE THUNDERBIRD AND PROVIDED CHILD CARE FOR VOTERS WITH CHILDREN AND THEY TOLD MEMBERS IN A LETTER THAT A YES VOTE WAS THE LAST AND ONLY WORD SEPARATING YOU AND NORTHWEST AIRLINES FROM BANKRUPTCY 9307270107 930727 BUSINESS WORLD COMBAT VETERANS OF SORTS RAISE THE SCHWINN FLAG BY TIM FERGUSON KETCHUM IDAHO THE DEAL THAT PRESERVED THE SCHWINN BICYCLE FRANCHISE BEGAN AT WHAT SAM ZELL CALLS WAR AT FOUR OUTSIDE HIS WEEKEND PLACE ALONG THE BIG WOOD RIVER LATE SATURDAY AFTERNOONS ARE DEVOTED TO SIMULATED BATTLES BETWEEN CAMOUFLAGED MEN FIRING JAWBREAKERSIZED PAINTBALLS AT EACH OTHER FROM GASPOWERED GUNS IT'S RECREATION FOR THE RAMBUNCTIOUS VULTURE INVESTOR FROM CHICAGO AND A HANDFUL OF FRIENDS AND ASSOCIATES ONE RECURRENT ENLISTEE IS CHUCK FERRIES A SKI ENTREPRENEUR WHO TOOK THE SCOTT SPORTINGPRODUCTS LINE OUT OF BANKRUPTCY IN 1981 AND DIVERSIFIED IT FROM A RELIANCE ON SNOW GEAR WITH BICYCLE ACCESSORIES AND ESPECIALLY IN EUROPE WITH MOUNTAIN BIKES THEMSELVES THE COMPANY CAUGHT THE RISE OF A WARMERWEATHER ACTIVITY IN THE 1980S MR FERRIES SAYS TOTAL SALES HAVE RISEN TO 110 MILLION FROM 5 MILLION IN 1982 YOU WOULDN'T KNOW IT FROM SCOTT'S HEADQUARTERS IN A WEATHERED UNMARKED BUILDING IN THE LIGHTINDUSTRIAL STRETCH OF THIS SUN VALLEY BASE TOWN MR ZELL LIKEWISE KEEPS A LOW IF SOMETIMES LOUD PROFILE AROUND THE RESORT AREA NOW HE AND SCOTT HAVE TEAMED TO BRING THE MOST VISIBLE NAME IN AMERICAN CYCLING SCHWINN BACK FROM A BANKRUPTCY OF ITS OWN THE ROUGHLY 5050 ARRANGEMENT BETWEEN THE ZELLCHILMARK FUND AND SCOTT REACHED AT THE START OF THIS YEAR NOT ONLY PROMISES A GAME EFFORT TO REVIVE THE SCHWINN BRAND BUT INFUSES SCOTT WITH EXPANSION CAPITAL IT LACKED DURING THE CREDITCONSTRAINED EARLY 1990S THE NEW UMBRELLA SCOTT SPORTS GROUP CHAIRED BY MR FERRIES IS MOVING ALONG WITH THE SCHWINN ARM TO BOULDER COLO THIS FALL SCOTT USA WILL REMAIN AT LEAST FOR A WHILE IN KETCHUM WHERE BIKING AND SKI TRAILS ARE A MINUTE OR TWO OUT THE FRONT DOOR AND LUNCH HOUR MEANS HITTING THE SLOPES ONE WAY OR THE OTHER FOR SOME TIME MR FERRIES HAD USED R&R PERIODS OF WAR AT FOUR TO SEEK COUNSEL ON SCOTT'S FORTUNES FROM MR ZELL WHO HE SAYS CAN GET TO THE BOTTOM OF A PROBLEM OR AN OPPORTUNITY IN TWO MINUTES AFTER THE CHAPTER 11 FILING BY FAMILYOWNED SCHWINN THE TWO MEN MET MORE SERIOUSLY MR ZELL HAD PREVIOUSLY LOOKED AT THE SINKING MARQUE AND ITS EXTRAORDINARILY LOYAL DEALER NETWORK BUT NOW HE HAD A CHANCE TO BRING IN WHAT ASH JAISING PRESIDENT OF THE BICYCLE MARKET RESEARCH INSTITUTE CALLS THE BEST OVERALL MANAGEMENT TEAM IN THE BICYCLE INDUSTRY IN TAKING OVER SCHWINN MR FERRIES AND HIS CREW FACE DUAL CHALLENGES THE FIRST IS THE REPORTED RELAPSE OF AMERICAN ADULTS INTO A COUCH POTATO LIFESTYLE WHICH COULD THREATEN BICYCLE SALES HERE OF LATE THESE HAVE RUN NEAR THE HIGH END OF A TRADITIONAL RANGE OF 9 MILLION TO 12 MILLION A YEAR ACCORDING TO THE BICYCLE MANUFACTURERS ASSOCIATION OF AMERICA BMAA BOTH MR FERRIES AND NED POST THE SCOTT USA PRESIDENT WHO FORMERLY HEADED WILSON SPORTING GOODS IN THE US POOHPOOH THE IDEA THAT THE COUNTRY IS GOING SOFT SCHWINN HAS EXTRA REASON TO HOPE NOT BECAUSE 35 OF ITS SALES ARE COMING NOT FROM ACTUAL BICYCLES OR PARTS BUT FROM STATIONARY FITNESS EQUIPMENT THE SECOND DIFFICULTY IS BRINGING THE SCHWINN BRAND BACK AMONG CYCLISTS OVER THE LAST GENERATION ITS SHARE OF THE ADULTSIZE US BICYCLE MARKET HAS FALLEN FROM MORE THAN 25 TO PERHAPS 5 AT THE SAME TIME THE AMERICAN DISTRIBUTION SYSTEM HAS RADICALLY CHANGED WITH DISCOUNTING MASSMERCHANDISERS NOW HANDLING AS MUCH AS 75 OF UNIT BICYCLE SALES IN DOLLAR VOLUME THE INDEPENDENT DEALERS SELLING SCHWINN AND THE HIGHEND SPORTS MODELS ARE CLOSE TO HALF THE BUSINESS BUT THEIR PRICES FACE GROWING PRESSURE RETAIL CHANNELS HAVE BEEN SO ALTERED THAT HUFFY THE LEADER IN THE MASS MARKET BELOW 200 A BIKE NOW OUTSELLS SCHWINN BY AT LEAST FIVE TIMES THIS EVEN THOUGH SCHWINN'S BRAND EQUITY REMAINS EXCEPTIONAL WITH MORE THAN HALF THE RESPONDENTS IN MR JAISING'S LAST SURVEY NAMING IT FIRST AMONG ALL CYCLE MAKERS AND THE EQUIVALENT OF 57 MILLION US ADULTS GIVING IT HIGH QUALITY MARKS AS WELL THAT GOODWILL ALONE MIGHT SEEM ENOUGH TO JUSTIFY THE 41 MILLION ZELLCHILMARK AND SCOTT PAID BUT SCHWINN ISN'T GEARED FOR THE WALMART WORLD GIVEN ITS RELIANCE ON THE BELEAGUERED INDEPENDENT SHOPS MR JAISING SAYS SCHWINN WILL HAVE TO LEAVE TRACKS ON THE TRENDY NAMES SOLD IN SUCH VENUES SUCH AS TREK SPECIALIZED AND GIANT AGAINST THOSE AND EVEN PRICIER ALTERNATIVES HE THINKS SCHWINN CAN APPEAL TO VALUE CONSCIOUSNESS IN THE 1990S HOWEVER IT NEEDS TO REGAIN SOME CACHET AND WHAT MIGHT BE CALLED CULTURE CONSCIOUSNESS AND A SHIFTING OF THE WIND AS MR POST PUTS IT IS PART OF THE REASON FOR THE BOULDER MOVE THAT CYCLING EPICENTER HAS THE CAPABILITY OF BOTH EXPOSING THE COMPANY TO THE LATEST TASTES AND DRAWING AS EMPLOYEES THE KIND OF TALENT IT SEEKS THE MOVE FROM A LONGTIME CHICAGO BASE ALSO IS A WAY OF PRUNING PAYROLL DEADWOOD ALTHOUGH THE COMPANY HAD PLENTY OF KEEPERS ON STAFF WHO WERE BEING FRUSTRATED UNDER THE OLD OWNERSHIP AND COULD BLOOM UNDER NEW MANAGERS THERE ARE NO NEPHEWS AND UNCLES AND NIECES TO ARGUE AT SCHWINN ANYMORE SAYS MR JAISING SCHWINN'S LAST US MANUFACTURING PLANT IN WATERFORD WIS DIDN'T SURVIVE THE SALE BUT LIKE NEARLY ALL AMERICAN BICYCLE COMPANIES IT HAS BEEN IMPORTING MOST MODELS IN RECENT YEARS JAPAN AND LATER TAIWAN AND NOW CHINA HAVE BEEN THE BIG SOURCES SCHWINN DOES HOWEVER MAINTAIN WHAT MAY BE THE BEST TESTING LAB IN THE INDUSTRY AND CAN BE EXPECTED TO EMPHASIZE DOMESTIC R&D IN ITS DRIVE TO BE CONTEMPORARY ANYHOW AS ITS STEPBROTHER SCOTT CAN ATTEST THE BICYCLE MARKET HAS BECOME A WORLDWIDE ONE AND AS WITH SO MANY OTHER GOODS IT GROWS INCREASINGLY DIFFICULT TO SPECIFY A COUNTRY OF ORIGIN CHAIRMAN FERRIES SAYS THAT EVEN AS THE PARENT COMPANY CONSOLIDATES MOST OPERATIONS IN BOULDER IT MAKES MARKETING AND SALES SENSE TO KEEP SCOTT AS A SEPARATE HIGHEREND BICYCLE OPERATION MR POST SAYS THE NEW FINANCING SHOULD ALLOW THE SCOTT LABEL TO DOUBLE ITS LESSTHAN2 SHARE OF THE US SPORTBIKE MARKET WITH AN EVENTUAL AIM OF 10 IT HAS ABOUT 11 IN EUROPE AND SCOTT IS REPORTEDLY PROFITABLE OVERALL UNLIKE SOME COMPETITORS WHAT IS BROADLY CALLED THE MOUNTAINBIKE ALLTERRAIN CATEGORY TOUGH BUT LIGHTWEIGHT WITH MULTIPLE GEARS GREW TO 55 OF DOMESTIC SHIPMENTS IN 1992 FROM 6 IN 1983 THE BMAA FIGURES IN THE US SCOTT WAS LATE AND SCHWINN LATER STILL IN CATCHING ON BUT BOTH ARE RIDING THE TREND HARD NOW MR JAISING IS A BOOSTER IF THEY WENT PUBLIC TOMORROW I'D BUY SOME STOCK HE SAYS WHICH MUST BE PARTICULARLY HEARTENING TO MR ZELL WHO LIKES TO SELL AS WELL AS BUY IN THE MEANTIME HE HAS AN ULTERIOR MOTIVE FOR HIS POSITION IN SCOTT THE COMPANY LONG INTO MOTORCYCLE AND BICYCLE HELMETS MAKES HEADGEAR FOR WAR AT FOUR TOO 9307270106 930727 WHO'S NEWS COMPUTERLAND CORP COMPUTERLAND CORP PLEASANTON CALIF EDWARD R ANDERSON PRESIDENT OF THIS CLOSELYHELD COMPUTER RETAILING GIANT'S COMPUTERLAND USA UNIT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY RESIGNED TO PURSUE OTHER INTERESTS NO SUCCESSOR WAS IMMEDIATELY NAMED 9307270105 930727 COMMODITIES SOYBEAN FUTURES PLUNGE AS WEATHER PROSPECTS IMPROVE FOR FLOODED FARMLAND OF THE MIDWEST BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SOYBEAN FUTURES PLUNGED AS WEATHER PROSPECTS IMPROVED FOR THE DELUGED FARMLAND OF THE WESTERN CORN BELT AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY WERE DOWN 165 CENTS TO 711 A BUSHEL GIVING BACK A SUBSTANTIAL CHUNK OF THE RALLY THE NOVEMBER CONTRACT PRICE STAGED EARLIER THIS MONTH IN MIDJULY THE PRICE REACHED 750 A BUSHEL UNLIKE A DROUGHT WHICH JUST DECIMATES A CROP YOU HAVE A WATERLOGGED CROP THAT IS STUNTED BUT MAY BE ABLE TO GROW IF WE GET GOOD WEATHER NOW SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO IN CHICAGO THE MARKET WAS RESPONDING TO REPORTS OF BETTER WEATHER THE NATIONAL WEATHER SERVICE'S EXTENDED WEATHER MODELS YESTERDAY SHOWED FORMATION OF A HIGHPRESSURE RIDGE IN EARLY AUGUST SUCH A RIDGE WOULD DIVERT STORM SYSTEMS FROM THE MIDWEST GIVING FARMERS A MUCHNEEDED BREAK FROM THE RAIN MOREOVER THE WEATHER SERVICE'S SIXTO10 DAY FORECAST WHICH WAS ALSO RELEASED YESTERDAY PREDICTED NORMAL RAINFALL AND NEARNORMAL TEMPERATURES ANOTHER HARBINGER OF IMPROVING GROWING CONDITIONS AFTER TRADING YESTERDAY THE US AGRICULTURE DEPARTMENT RELEASED ITS WEEKLY CROPCONDITION REPORT A REPORT THAT HAS GARNERED INTENSE INTEREST AMONG TRADERS AS THEY TRY TO ASSESS THE FLOOD'S EFFECT ON CROPS THE REPORT WHICH IS BASED ON SURVEYS OF FARMERS THROUGHOUT THE MIDWEST INDICATED MILD IMPROVEMENT OF CROP CONDITIONS IN SOME ESPECIALLY TROUBLED AREAS IN IOWA FOR INSTANCE THE RATING OF SOYBEANS IN GOODTOEXCELLENT CONDITION WAS 15 YESTERDAY VERSUS 14 LAST WEEK CORN IN IOWA WAS RATED 19 GOOD TO EXCELLENT VERSUS 18 LAST WEEK YET MANY FARMERS IN IOWA ESPECIALLY THOSE WHOSE FARMS ABUT RIVERS AND STREAMS CONTINUE TO COPE WITH FLOODED OR WATERLOGGED FIELDS MEANWHILE ANALYSTS NOTE THE ACROSSTHECOUNTRY CORN AND SOYBEAN CROPCONDITION ESTIMATES REMAIN SHARPLY LOWER THAN LAST YEAR'S RATINGS IN SOYBEANS FOR EXAMPLE 40 OF THE CROP IS NOW RATED GOOD TO EXCELLENT COMPARED WITH 73 A YEAR AGO AT THIS TIME CORN IS RATED 49 GOOD TO EXCELLENT COMPARED WITH 76 A YEAR EARLIER THE PREVAILING SENTIMENT AT THE CBOT NEVERTHELESS APPEARS TO BE BEARISH COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY THAT TRADE ON THE BASIS OF MATHEMATICAL PROJECTIONS OF MARKET PERFORMANCE WERE BIG SELLERS IN YESTERDAY'S MARKET AND MANY FARMERS IN EASTERN CORNBELT AREAS SPARED BY THE FLOODING ARE SELLING AS WELL SEEKING TO LOCK IN WHAT THEY REGARD AS HIGH CURRENT PRICE LEVELS ANALYSTS SAID THE PRICE WEAKNESS IN THE CBOT'S SOYBEAN FUTURES PIT SPILLED OVER YESTERDAY INTO THE CORN FUTURES PIT CORN FOR DECEMBER DELIVERY WAS DOWN THREE CENTS YESTERDAY TO 248 A BUSHEL DRIER WEATHER WOULD BE GOOD FOR THE CORN CROP EVERYWHERE NOT JUST IN FLOODED AREAS THAT'S BECAUSE MUCH OF THE MIDWEST CORN CROP IS IN ITS TASSLING STAGE PART OF THE POLLINATION PROCESS THAT DETERMINES HOW MANY KERNELS OF CORN WILL BE ON EACH EAR GOOD WEATHER DURING POLLINATION CAN HELP ENSURE AN ABUNDANT CROP IN WHEAT FUTURES TRADING THE PRICE OF THE CONTRACT FOR DECEMBER DELIVERY ROSE 225 CENTS TO 327 A BUSHEL PRICES GOT SUPPORT FROM REPORTS THAT AFRICAN COUNTRIES HAD PURCHASED WHEAT UNDER USDA EXPORTCREDIT PROGRAMS CONTINUING RAIN IN NORTHERN KANSAS AND SOUTHERN NEBRASKA WHERE THE SPRING WHEAT HARVEST HAS BEEN HAMPERED BY MUDDY FIELDS ALSO SUPPORTED PRICES IN OTHER COMMODITY MARKETS YESTERDAY METALS PRICES OF PRECIOUS METALS FUTURES CONTRACTS ROSE ACROSS THE BOARD IN MOSTLY TECHNICAL ACTIVITY TRADERS SAID THE ACTIVE AUGUST GOLD CONTRACT SURGED 310 TO 39310 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE TRADERS SAID THAT THE YELLOW METAL SEEMS TO BE CAUGHT IN A NARROW TRADING RANGE BELOW 395 THE EXPIRATION OF A NUMBER OF GOLD OPTIONS ON WEDNESDAY COULD INJECT NEW VOLATILITY INTO THE MARKETS LATER THIS WEEK THEY SAID I SEE GOLD IN A CONSOLIDATION MODE FOR THE TIME BEING SAID IAN MACDONALD WHO MANAGES PRECIOUS METALS TRADING FOR CREDIT SUISSE IN NEW YORK HE NOTED THAT GOLD DESPITE ITS RECENT FAILURE TO CRACK 400 APPEARS WELL SUPPORTED IN THE 390 TO 395 RANGE IT LOOKS LIKE GOLD IS BUILDING A GOOD BASE HE SAID SILVER FOR SEPTEMBER DELIVERY CLIMBED 12 CENTS TO 510 AN OUNCE ON THE COMEX AMID A WAVE OF BUY ORDERS FROM SWITZERLAND DEALERS SAID ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR OCTOBER DELIVERY ROSE 240 TO 40860 WHILE PALLADIUM FOR SEPTEMBER DELIVERY EDGED UP 35 CENTS TO 13805 ENERGY PETROLEUM PRICES JUMPED ON FURTHER REPORTS THAT NEITHER AN OPEC MEETING NOR ANY SALE OF IRAQI OIL IS LIKELY TO TAKE PLACE SOON CHANCES OF AN EMERGENCY MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTINUED TO FADE AS JEAN PING OPEC'S PRESIDENT HEADED HOME AFTER A QUICK TOUR OF THE PERSIAN GULF FOR CONSULTATIONS WITH LEADING PRODUCERS MEANWHILE THERE WERE REPORTS THAT IRAQI REPRESENTATIVES INVOLVED IN THE RECENT TALKS WITH THE UNITED NATIONS ON A 16 BILLION SALE OF IRAQ'S OIL AREN'T PLANNING TO RETURN TO NEW YORK UNTIL SEPTEMBER TRADERS INTERPRETED THAT TO MEAN FURTHER DELAYS IN ANY POSSIBLE SALE OF IRAQI OIL AS A RESULT OF THESE DEVELOPMENTS THE FUTURES PRICE OF CRUDE OIL FOR SEPTEMBER DELIVERY INCREASED 32 CENTS TO SETTLE AT 1807 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE 9307270104 930727 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK PETER R DOLAN WAS PROMOTED TO PRESIDENT OF BRISTOLMYERS PRODUCTS THE COMPANY'S CONSUMERPRODUCTS DIVISION FORMERLY AN EXECUTIVE VICE PRESIDENT OF THE DIVISION MR DOLAN 37 YEARS OLD SUCCEEDS RICHARD F GACCIONE 46 WHO HAS BEEN NAMED SENIOR VICE PRESIDENT OF WORLDWIDE OVERTHECOUNTER CONSUMER PRODUCTS STRATEGY AT THE PARENT COMPANY 9307270103 930727 REVIEW & OUTLOOK EDITORIAL PENSION PARABLE BACK IN 1980 REP FERNAND ST GERMAIN STOKED UP THE SAVINGS AND LOAN CRISIS WITH A MIDNIGHT COUP SNEAKING A BIG BOOST IN DEPOSIT INSURANCE THROUGH A SENATEHOUSE CONFERENCE COMMITTEE THIS WEEK A SIMILAR COMMITTEE IS WRITING A BUDGET FOR THE WHOLE GOVERNMENT AND NO DOUBT THE AIR WILL BE FILLED WITH SIMILAR LEGISLATIVE PLOYS SENATOR HOWARD METZENBAUM FOR EXAMPLE HAS HIS EYES ON THE NATION'S PENSION SYSTEM THE SENATOR HAS A BRAINSTORM ABOUT MAKING IT EASIER FOR TORT LAWYERS TO SUE EVERYONE IN SIGHT WHEN A PENSION PLAN FAILS ERISA THE BASIC PENSION LAW CURRENTLY PROVIDES THAT WHEN A COMPANY'S PENSION PLAN GOES BUST THE ONLY PEOPLE WHO CAN BE SUED FOR MONEY DAMAGES ARE THE FOLKS ACTUALLY IN CHARGE OF MANAGING THE PLAN'S ASSETS MR METZENBAUM WOULD JIGGLE THE LAW AND MARCH A WHOLE INDUSTRY OF OUTSIDE PENSION CONSULTANTS ACTUARIES AND ANYBODY ELSE INTO THE SAME LEGAL SWAMPS THESE PEOPLE MAY NOT HAVE WHAT ERISA CALLS FIDUCIARY RESPONSIBILITY BUT THEY'VE GOT POTENTIALLY DEEP POCKETS MR METZENBAUM RAZZLEDAZZLED HIS AMENDMENT PAST HIS LABOR COMMITTEE SKIPPING ANY PRETENSE OF HEARINGS OR CONSULTATIONS HE EVEN TACKED ON AN AUTOMATIC FEDERAL PENALTY SO IT COULD BE STYLED A REVENUE MEASURE AND AVOID BEING STRIPPED OUT LATER UNDER THE GERMANENESS RULE LUCKILY FOLKS LIKE CHRIS DODD AND NANCY KASSEBAUM PERSUADED HIM TO SPIKE THIS NUTTINESS AT LEAST TEMPORARILY MR DODD MADE THE POINT THAT THE PENSION SYSTEM IS TOO IMPORTANT TO MONKEY AROUND WITH IT ON THE SLY AND HOPE IT WORKS BUT THE IDEA IS NOW FLOATING AROUND THE CONFERENCE COMMITTEE AND THERE ARE SOME ARTFULLY ORCHESTRATED HEARINGS TODAY IN THE HOUSE LABOR COMMITTEE ONE OF WASHINGTON'S LITTLE SECRETS IS THAT A LOT OF LAWMAKING REFLECTS LITTLE MORE THAN THE PET AGENDA OF THIS OR THAT ANONYMOUS UNELECTED STAFFER THE WORDING OF SENATOR METZENBAUM'S AMENDMENT ACTUALLY EMERGED FROM THE LEGAL BOWELS OF THE LABOR DEPARTMENT WHERE FOLKS ARE EAGER TO ADOPT THE SCATTERSHOT DEEPPOCKETS ETHOS OF THE GOVERNMENT'S S&L LITIGATION THEY'VE FOUND READY ALLIES AMONG MR METZENBAUM'S ULTRALIBERAL CADRES ESPECIALLY MICHELE VARNHAGEN AND HER MENTOR THE HOUSE LABOR COMMITTEE'S PHYLLIS BORZI YELLING ENCOURAGEMENT FROM THE SIDELINES IS KAREN FERGUSON OF THE UNIONFUNDED PENSION RIGHTS CENTER LIKE THE NADERITES THESE FOLKS SEEM TO VIEW A RISING TIDE OF LITIGATION AS A FAVORABLE INDEX OF SOCIAL JUSTICE THIS JIBES NICELY WITH THE AGENDA OF THE TRIAL LAWYERS WHO PUMP MONEY INTO DEMOCRATIC CAMPAIGNS MR METZENBAUM WILL RETIRE NEXT YEAR BUT HIS HEIR APPARENT IS NONE OTHER THAN SONINLAW JOEL HYATT THE LITIGATION ENTREPRENEUR THE PENSION SYSTEM IS ALREADY VERGING ON A SHAMBLES THESE DAYS THANKS TO RUNAWAY COSTS IMPOSED BY WASHINGTON FORCING PLANS TO INDEMNIFY EVERYBODY AND THEIR BROTHER AGAINST LITIGATION WOULD JUST BE ANOTHER NAIL IN THE COFFIN ONLY BY THE MOST MYOPIC ACCOUNTING WOULD THIS IMPROVE THE LOT OF BENEFICIARIES AS THINGS STAND THOUSANDS OF COMPANIES HAVE ALREADY FOLDED UP OR FROZEN HEALTHY WELLFUNDED PLANS THAT LEAVES THE PENSION BENEFIT GUARANTY CORPORATION THE FEDERAL INSURANCE AGENCY POTENTIALLY HOLDING THE BAG FOR 51 BILLION IN UNDERFUNDED PLANS MAINLY FOR COMPANIES SUCH AS GM AND CHRYSLER AND AS AUTO MAKERS NEGOTIATE ANOTHER BENEFITS PACKAGE THE UNIONS CARE MORE ABOUT LOCKING IN OVERINFLATED UNDERFUNDED BENEFITS THAN ABOUT BEQUEATHING A HEALTHY PENSION SYSTEM IF AND WHEN THE BUBBLE BURSTS EVERYBODY ASSUMES TAXPAYERS CAN BE FINAGLED INTO FOOTING THE BILL AS THEY DID FOR REP ST GERMAIN'S 1980 PROMISE AND TO COMPLETE THE WRECKAGE SENATOR METZENBAUM WANTS TO UNLEASH THE TORT LAWYERS 9307270102 930727 POLITICS & POLICY AS GM'S EDS WORKS TO SAVE SOFTWARE TAX BREAK ITS POLITICAL CONTRIBUTIONS TO CAPITOL HILL SOAR BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GIVING IT AWAY READS THE HEADLINE ON THE ELECTRONIC DATA SYSTEMS NEWSPAPER AD RAISING THE SPECTER OF FOREIGN COMPETITORS GAINING A TAX ADVANTAGE TO BUY UP AMERICAN TECHNOLOGY GIVING IT AWAY MIGHT ALSO BE THE SLOGAN FOR THE COMPANY'S POLITICAL ACTION COMMITTEE THE GENERAL MOTORS CORP SUBSIDIARY WHICH MORE THAN DOUBLED ITS POLITICAL CONTRIBUTIONS TO MORE THAN 226000 IN THE 1992 CAMPAIGN IS ALREADY ON A PACE THAT WOULD FAR OUTSTRIP THAT LEVEL THIS YEAR WITH HOUSE AND SENATE TAXWRITERS HIGH ON THE LIST OF RECIPIENTS THE INCREASED PAC ACTIVITY DOVETAILS WITH AN AGGRESSIVE EDS LOBBYING CAMPAIGN AIMED AT PROTECTING ITS ABILITY TO QUICKLY WRITE OFF COMPUTER SOFTWARE ASSETS OBTAINED BY ACQUIRING SMALLER COMPANIES EDS ALREADY HAS WON A FIVEYEAR WRITEOFF IN THE SENATE FOR SUCH ACQUISITIONS AT AN ESTIMATED COST TO THE TREASURY OF 275 MILLION THROUGH 1998 BUT THE PROVISION STILL FACES STRONG RESISTANCE AMONG HOUSE TAXWRITERS MOST NOTABLY WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI AS BUDGET NEGOTIATORS PUSH TOWARD FINAL AGREEMENT THIS WEEK ON THE CLINTON ADMINISTRATION'S DEFICIT PLAN A REVENUEHUNGRY CONGRESS IS PROPOSING CHANGES OF LAW THAT WOULD HAVE FARREACHING EFFECTS ON HIGHTECH COMPANIES MANY OF THEM SOPHISTICATED IN TECHNOLOGY BUT NAIVE IN POLITICS ARE RESPONDING BY STEPPING UP THEIR EFFORTS ON CAPITOL HILL FOR EXAMPLE THE BUDGET PLAN'S PROPOSAL TO INTRODUCE COMPETITIVE BIDDING FOR THE USE OF PUBLIC AIRWAVES FOR ADVANCED WIRELESS COMMUNICATIONS SPECTRUM AUCTIONING HAS SET OFF JOCKEYING BETWEEN SUCH GIANTS AS MCCAW CELLULAR COMMUNICATIONS INC AND TIME WARNER INC AT MCCAW'S LAKESIDE CORPORATE OFFICES OUTSIDE SEATTLE EXECUTIVES PRIDE THEMSELVES ON A STUDIED INFORMAL DRESS STYLE BUT THEY TOO ARE GETTING INTO THE POLITICAL GAME PUMPING UP THE MODEST COMPANY PAC AND WINNING CONCESSIONS BEHIND A LOBBYING TEAM WITH CLOSE TIES TO SENIOR MEMBERS OF THE HOUSE AND SENATE COMMERCE COMMITTEES EDS IS NO STRANGER TO WASHINGTON ITS FOUNDER ROSS PEROT WHO HAS GONE ON TO BECOME THE COUNTRY'S BESTKNOWN BASHER OF SPECIALINTEREST POLITICS WAS HIMSELF ONCE A MAJOR CONTRIBUTOR TO CONGRESSIONAL CAMPAIGNS AND HAD A BIG STAKE IN PROCESSING FEDERAL HEALTH FORMS BUT THE GROWTH IN THE COMPANY'S PAC IS A POSTPEROT PHENOMENON ITS POLITICAL CONTRIBUTIONS GREW BY 166 BETWEEN THE 1990 AND 1992 ELECTIONS ACCORDING TO FIGURES COMPILED BY THE CENTER FOR RESPONSIVE POLITICS NOT INCLUDED IN THE 1992 TOTALS ARE TENS OF THOUSANDS OF DOLLARS IN SOCALLED SOFT MONEY PARTY BUILDING CONTRIBUTIONS THAT AREN'T SUBJECT TO ELECTIONLAW LIMITS TO REPUBLICAN AND DEMOCRATIC CONGRESSIONAL CAMPAIGN COMMITTEES DURING THE SAME ELECTION CYCLE THE PACE OF ACTIVITY HAS QUICKENED WITH THE ADVENT OF THE NEW ADMINISTRATION AND THE DEFICITREDUCTION BILL FEDERAL ELECTION COMMISSION REPORTS THROUGH JUNE SHOW THAT THE EDS PAC HAS MADE 86700 IN CONTRIBUTIONS TO FEDERAL CANDIDATES SO FAR THIS YEAR NEARLY DOUBLE WHAT WAS GIVEN IN THE SAME SIXMONTH PERIOD TWO YEARS AGO IN MAY ALONE WHEN ACTIVITY ON THE TAX BILL BUILT UP THE MONTHLY FILINGS LIST 32350 IN CONTRIBUTIONS TO FEDERAL CANDIDATES THE INCREASES REFLECT THE INFLUENCE OF BILL SWEENEY THE COMPANY'S DIRECTOR OF GOVERNMENT RELATIONS AND A SKILLED DEMOCRATIC OPERATIVE WITH TIES TO SENATE MAJORITY WHIP WENDELL FORD OF KENTUCKY AND TO FORMER PARTY CHAIRMAN CHARLES MANATT MR SWEENEY INSISTS THE PATTERN OF GIVING IS NOT AT ALL RELATED TO THE LOBBYING CAMPAIGN ON SOFTWARE WRITEOFFS BUT MEMBERS OF THE WAYS AND MEANS AND FINANCE COMMITTEES ARE AMONG THOSE WHO HAVE MOST BENEFITED FROM EDS'S NEW LARGESSE NEARLY 30000 IN CONTRIBUTIONS WENT TO HOUSE AND SENATE TAXWRITERS DURING THE 1992 ELECTION CYCLE AND THIS HAS BEEN FOLLOWED WITH AN ADDITIONAL 18500 THIS YEAR ALREADY THAT'S MORE THAN THE PAC GAVE TO ALL OF CONGRESS IN AN EQUIVALENT PERIOD JUST FOUR YEARS AGO THE COMPANY INSISTS THAT ITS INCREASED POLITICAL ACTIVITY REFLECTS ONLY ITS NATURAL GROWTH AND A WILLINGNESS TO TRY NEW APPROACHES TO COMMUNITY RELATIONS AND CORPORATE ADVERTISING BUT BY ALMOST ANY MEASURE THE STRIKINGLY RAPID EXPANSION OF ITS PAC OVERLAPS WITH THE COMPANY'S LOBBYING ON THE SOFTWARE TAX ISSUE THAT LOBBYING CAMPAIGN BEGAN IN EARNEST IN THE LAST CONGRESS WHEN HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI PROPOSED LANDMARK LEGISLATION GOVERNING THE TAX TREATMENT OF INTANGIBLE ASSETS THESE INCLUDE NOT ONLY SOFTWARE BUT ALSO VAGUELY DEFINED INVESTMENTS IN GOODWILL THAT MAY BE TRANSFERRED FROM ONE COMPANY TO ANOTHER IN CORPORATE TAKEOVERS AND THE CHANGES SEEK TO ESTABLISH A FIXED WRITEOFF PERIOD 14 YEARS IN AN ATTEMPT TO END A LONG HISTORY OF COURT DISPUTES BETWEEN THE INTERNAL REVENUE SERVICE AND BUSINESSES THOUGH THE INITIAL GOAL WASN'T TO RAISE MORE TAXES BUDGET PRESSURES AND NEW COURT DECISIONS INTERPRETING THE CURRENT LAW HAVE CHANGED THE BOTTOM LINE WHEN WRAPPED INTO THE ADMINISTRATION'S DEFICIT PLAN THE HOUSEPASSED PROVISIONS WOULD ADD 21 BILLION IN REVENUES OVER THE NEXT FIVE YEARS THE SENATE MEANWHILE WOULD MORE THAN DOUBLE THIS TO OVER 5 BILLION BY DECREEING THAT COMPANIES CAN ONLY WRITE OFF 75 OF THE VALUE OF THEIR INTANGIBLES THE RESULT OF THESE PROPOSALS IS A LINEUP OF SOMETIMES ARBITRARY WINNERS AND LOSERS DEPENDING ON HOW DIFFERENT ASSETS ARE AMORTIZED NOW COMPARED WITH HOW THEY WOULD BE AMORTIZED UNDER THE NEW 14YEAR STANDARD HOLLYWOOD FLUSH WITH DEMOCRATIC CAMPAIGN MONEY WON A QUICK EXEMPTION FOR ITSELF MEANWHILE THE SENATE EVEN AS IT RAISED THE TOTAL TAKE FROM THE CHANGES GAVE BACK WHAT AMOUNTED TO MORE THAN A BILLION DOLLARS IN SOCALLED CARVEOUTS INCLUDING THE ONE SOUGHT BY EDS WHILE ALL SIDES HAVE AGREED TO A SHORTER THREEYEAR WRITEOFF FOR DISCRETE PURCHASES OF SOFTWARE THE SENATE ESTABLISHES A SECOND CATEGORY PERMITTING A FIVEYEAR AMORTIZATION PERIOD WHEN A QUALIFYING SOFTWARE COMPANY IS BOUGHT UP ENTIRELY PROPONENTS ARGUE THAT THIS EXEMPTION WILL APPLY ONLY TO THE PURCHASE OF MIDSIZE TO SMALLER COMPANIES VALUED AT LESS THAN 300 MILLION BUT CRITICS CONTEND THE FORMULA IS STILL TOO ROUGH AND PERMITS COMPANIES TO USE HIGHTECH SOFTWARE AS A COVER FOR FASTER WRITEOFFS ON OTHER ASSETS THE INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA A TRADE GROUP INCLUDING MICROSOFT CORP SUPPORTS THE SAME EXEMPTION BUT WITHIN THE INDUSTRY EDS HAS TAKEN THE LEAD BRINGING EXECUTIVES TO WASHINGTON RUNNING NEWSPAPER ADS AND FINDING AN ALLY IN SEN DONALD RIEGLE A MICHIGAN DEMOCRAT WHO IS ON THE FINANCE COMMITTEE AND IS CHAIRMAN OF THE BANKING COMMITTEE UP FOR REELECTION NEXT YEAR MR RIEGLE SEES THE ISSUE AS ONE OF MICHIGAN JOBS FOR EDS AND THE SMALLER COMSHARE INC WE NEED TO GET SOME JOB LIFT OUT OF THIS SAYS MR RIEGLE DEFENDING THE ADDED EXEMPTION AS PART OF THE WIDER DEFICITREDUCTION PLAN BUT FOR ALL ITS GIVING SO FAR EDS MAY STILL NEED SOME MORE POLITICAL LIFT DESPITE LOBBYING BY CHICAGO SOFTWARE COMPANIES CHAIRMAN ROSTENKOWSKI REMAINS ALIGNED WITH HIS STAFF ANALYSTS OPPOSED TO THE EXEMPTION WE'RE NOT GOING TO DO THAT THE CHAIRMAN INSISTS 9307270100 930727 UNIVERSAL SEISMIC TO POST LOSS SUGAR LAND TEXAS UNIVERSAL SEISMIC ASSOCIATES INC SAID IT EXPECTS TO REPORT A LOSS OF ABOUT 1 MILLION FOR ITS FISCAL FOURTH QUARTER BECAUSE OF SLOWERTHANEXPECTED PROGRESS BY SOME SEISMIC CREWS AND POOR WEATHER CONDITIONS THE COMPANY WHICH PROVIDES SEISMIC DATA TO THE ENERGY INDUSTRY SAID THAT FOR THE YEAREARLIER FOURTH QUARTER IT EARNED 447113 OR 26 CENTS A SHARE ON REVENUE OF 18 MILLION REVENUE FOR THE 1993 QUARTER ENDED JUNE 30 WAS ABOUT 22 MILLION ALL FROM THREEDIMENSIONAL GEOPHYSICAL SURVEYS 9307270099 930727 PIED PIPERS OF RELATIVISM REVERSE COURSE BY DINESH D'SOUZA I AM NOT A MARXIST KARL MARX ONCE SAID BUT HIS DISAVOWAL ONLY MILDLY SUBDUED THE ENTHUSIASM OF THOSE WHO CLAIMED TO ACT ON HIS BEHALF IT MUST BE LEFT TO HISTORIANS TO SPECULATE ABOUT HOW THE WORLD MIGHT BE DIFFERENT HAD MARX MANAGED TO PREVENT THE CRIMES PERPETRATED IN HIS NAME TODAY MARXISTS HAVE VIRTUALLY ALL SURRENDERED IN THE FORMER SOVIET BLOC AND EVEN IN AMERICAN UNIVERSITIES THEY ARE SULLEN AND BESIEGED STUDENTS DO NOT HEAR MUCH ABOUT RUNNINGDOG CAPITALISTS THESE DAYS BUT THEY DO HEAR ABOUT A NEW AGENDA EMPHASIZING MULTICULTURALISM AND DIVERSITY THIS AGENDA TO RESHAPE AMERICAN EDUCATION DRAWS MUCH OF ITS INTELLECTUAL AMMUNITION FROM THEORIES OBSCURELY NAMED POSTMODERNISM POSTSTRUCTURALISM AND DECONSTRUCTION NOW IN A REMARKABLE DEVELOPMENT THAT MARX WOULD HAVE APPRECIATED THREE OF THE LEADING CHAMPIONS OF THE NEW EDUCATIONAL AGENDA HAVE ISSUED STERN WARNINGS TAKEN TOGETHER THEY AMOUNT TO A REPUDIATION OF THE WAY IN WHICH RACE THEORISTS FEMINISTS GAYRIGHTS ACTIVISTS AND OTHERS ARE TRASHING THE LIBERALARTS CURRICULUM IN THE NAME OF FIGHTING OPPRESSION THE ARGUMENT FOR DISPLACING TRADITIONAL ACADEMIC STANDARDS AND TEXTS IN AMERICAN SCHOOLS AND COLLEGES GAINED ENORMOUS MOMENTUM IN RECENT YEARS FROM THE WORKS OF RICHARD RORTY STANLEY FISH AND JACQUES DERRIDA MR RORTY WHO TEACHES AT THE UNIVERSITY OF VIRGINIA IS REGARDED AS PERHAPS THE LEADING PHILOSOPHER IN THE US MR FISH WHO TEACHES AT DUKE IS ONE OF THE MOST FLAMBOYANT LITERARY THEORISTS AROUND AND MR DERRIDA THE FRENCH APOSTLE OF DECONSTRUCTIONIST THINKING IS A FIGURE OF VENERATION AMONG A GENERATION OF AMERICAN EDUCATORS THESE THREE THINKERS HAVE BEEN UNDERSTOOD BY THEIR ADMIRERS TO HAVE UNDERMINED THE JUSTIFICATION FOR A CURRICULUM OF LIBERAL LEARNING FOCUSED ON THE GREAT WORKS OF THE WESTERN TRADITION AND ADJUDICATED BY THE PRINCIPLES OF EXCELLENCE AND QUALITY MR RORTY RADICALLY CALLS INTO QUESTION THE NOTIONS OF TRUTH AND MERIT MR FISH'S COPIOUS WRITINGS HAVE EMPHASIZED THE FLUIDITY AND INSTABILITY OF MEANING IN TEXTS AND MR DERRIDA'S MISSION TO DATE SEEMS TO BE NOTHING LESS THAN THE DECONSTRUCTION OF WESTERN METAPHYSICS IF ALL THIS SEEMS ARCANE IT HAS ALSO BEEN GIVEN PRACTICAL APPLICATION FOR A GENERATION OF ACTIVISTS THE ARGUMENTS OF MESSRS RORTY FISH AND DERRIDA HAVE PROVIDED AMMUNITION FOR AN ASSAULT ON THE TRADITIONAL STANDARDS OF THE LIBERAL ARTS SUPPOSEDLY REVEALING THEM TO BE INCOHERENT AND ARBITRARY PERHAPS NOTHING MORE THAN AN EXCUSE FOR WHITE MALE PRIVILEGE SINCE STANDARDS HAVE NO INHERENT WARRANT THE ACTIVISTS INSIST THEY CAN BE SET ASIDE THUS THERE IS NOTHING WRONG WITH POLICIES OF HIRING PROMOTION AND CURRICULAR SELECTION THAT ARE BASED LESS ON MERIT THAN ON POLITICAL EXPEDIENCY RACE GENDER AND SEXUAL BEHAVIOR ARE NOW VIEWED AS LEGITIMATE CRITERIA FOR RECRUITING TEACHERS OR ASSIGNING BOOKS IN CLASS MANY OF US OUTSIDE THE ACADEMY HAVE CRITICIZED THE CONSEQUENCES WHICH ARE NOT SIMPLY A DEBASEMENT OF THE WESTERN TRADITION BUT IN MANY CASES THE PROMULGATION OF MEDIOCRITY AND IGNORANCE ALTHOUGH THE PUBLIC CRITIQUE OF POLITICAL CORRECTNESS HAS PUT SOME OF ITS CHAMPIONS ON THE DEFENSIVE WITHIN THE ACADEMY THE NEW THINKING STILL PREVAILS THIS IS WHY THE RECENT STATEMENTS OF MESSRS RORTY FISH AND DERRIDA ARE IMPORTANT MESSRS RORTY AND DERRIDA MADE THEIR REMARKS IN CONVERSATIONS PUBLISHED IN THE LAST COUPLE OF YEARS IN THE JOURNAL OF ADVANCED COMPOSITION BASED AT THE UNIVERSITY OF SOUTH FLORIDA FROM THIS OBSCURE FORUM BOTH MEN ISSUED CAVEATS THAT HAVE BEEN TRAVELING CENTRIFUGALLY THROUGH ACADEMIC DEPARTMENTS ABETTED BY THE PHOTOCOPY AND FAX MACHINE MR FISH BY CONTRAST WENT ABROAD TO ISSUE HIS MEA CULPA WHICH IS WHY MANY OF HIS FOLLOWERS ARE NOW CHASING DOWN THE JUNE 10 ISSUE OF THE LONDON REVIEW OF BOOKS THE RORTY INTERVIEW GETS INTERESTING WHEN HE IS PRESSED TO DENOUNCE THE TRADITIONAL APPROACH OF FRESHMAN COMPOSITION IN FAVOR OF NEW METHODS IT STRIKES ME AS A TERRIBLE IDEA MR RORTY SAYS I THINK THE IDEA OF FRESHMAN ENGLISH MOSTLY IS JUST TO GET STUDENTS TO WRITE COMPLETE SENTENCES GET THE COMMAS IN THE RIGHT PLACE AND STUFF LIKE THAT THE STUFF THAT WE WOULD LIKE TO THINK THE HIGH SCHOOLS DO AND IN FACT THEY DON'T MR RORTY PROCEEDS TO ENDORSE ED HIRSCH'S DOCTRINE OF CULTURAL LITERACY IN WHICH AMERICAN HIGHSCHOOL STUDENTS SHARE A COMMON VOCABULARY AND BODY OF KNOWLEDGE MR RORTY ARGUES THAT A COMMON HISTORICAL UNDERSTANDING IS IMPORTANT FOR STUDENTS IN ORDER TO HAVE A SENSE OF CITIZENSHIP IN COUNTRY AND HE CONCLUDES I THINK OF AMERICA AS A SPECTACULAR SUCCESS STORY OF THE GROWTH OF DEMOCRATIC FREEDOM WHEREAS MY OPPONENTS ON THE LEFT THINK OF IT AS A RACIST SEXIST IMPERIALIST SOCIETY HAVING ADMITTED THAT IT SEEMS TO ME IT'S STILL THE BEST THING ON OFFER WHEREAS MY OPPONENTS TEND TO THINK THAT HAVING SAID THAT YOU CAN SORT OF SET IT ASIDE MR FISH'S RECENT ARTICLE IS BEST DESCRIBED AS A TRADITIONALIST DEFENSE OF THE MOTIVES FOR TEACHING AND STUDYING LITERATURE MR FISH SCORNS THE EFFORTS OF AFROCENTRISTS FEMINISTS AND HOMOSEXUALRIGHTS ACTIVISTS WHO WISH TO DEPLOY SCHOLARSHIP IN ORDER TO TRANSFORM THE ACADEMY AND SOCIETY HE ASSERTS THERE IS A GREAT DIFFERENCE BETWEEN TRYING TO FIGURE OUT WHAT A POEM MEANS AND TRYING TO FIGURE OUT WHICH INTERPRETATION OF A POEM WILL CONTRIBUTE TO THE TOPPLING OF PATRIARCHY OR THE WAR EFFORT MR FISH MAINTAINS THAT IT APPROACHES INSANITY FOR ACADEMICS WHO SPECIALIZE IN NARRATIVE STRUCTURES DOUBLE TRIPLE AND QUADRUPLE MEANINGS RECONDITE ALLUSIONS CONVERGENCES MIRROR IMAGES AND SO ON TO CONSIDER THEMSELVES ESPECIALLY QUALIFIED TO OFFER POLITICAL SOLUTIONS FOR SOCIETY MR FISH RIDICULES THE GENERAL ASSUMPTION ON THE PART OF ACADEMICS THAT THEY ARE A SUPERIOR BREED REVERSING MARX HE SEEMS TO ARGUE THAT PROFESSORS ARE TRYING TOO HARD TO CHANGE THE WORLD THE POINT IS TO UNDERSTAND IT JACQUES DERRIDA'S OBSERVATIONS COME FOR HIS INTERVIEWER AS A SURPRISE PRODDED TO COMMENT ON THE VIRTUES OF SUBVERTING TEXTS MR DERRIDA RESPONDS DECONSTRUCTING ACADEMIC AND POLITICAL DISCOURSE DOESN'T MEAN SIMPLY DESTROYING THE NORMS OR PUSHING THESE NORMS TO UTTER CHAOS I'M NOT IN FAVOR SIMPLY OF DISORDER MR DERRIDA PROCEEDS TO HIS MAIN POINT I CALL MY STUDENTS IN FRANCE BACK TO THE MOST TRADITIONAL WAYS OF READING BEFORE TRYING TO DECONSTRUCT TEXTS I START WITH THE TRADITION IF YOU'RE NOT TRAINED IN THE TRADITION THEN DECONSTRUCTION MEANS NOTHING I'M IN FAVOR OF TRADITION I'M RESPECTFUL OF AND A LOVER OF THE TRADITION THERE'S NO DECONSTRUCTION WITHOUT THE MEMORY OF THE TRADITION FINALLY MR DERRIDA TURNS ON HIS WOULDBE IMITATORS I THINK THAT IF WHAT IS CALLED DECONSTRUCTION PRODUCES NEGLECT OF THE CLASSICAL AUTHORS THE CANONICAL TEXTS AND SO ON WE SHOULD FIGHT IT I WOULDN'T BE IN FAVOR OF SUCH A DECONSTRUCTION I THINK THAT STUDENTS SHOULD READ WHAT ARE CONSIDERED THE GREAT TEXTS IN OUR TRADITION EVEN IF WE HAVE TO OPEN THE FIELD IF DECONSTRUCTION IS ONLY A PRETENSE TO IGNORE MINIMAL REQUIREMENTS OF KNOWLEDGE OF THE TRADITION IT COULD BE A BAD THING NOTICE THAT MESSRS RORTY FISH AND DERRIDA ARE NOT EXACTLY RECANTING THEIR PHILOSOPHICAL CONVICTIONS ONLY SETTING OUTER LIMITS ON THEIR APPLICATION WE MAY HAVE OUR DOUBTS ABOUT THE UNIVERSALITY OF STANDARDS THEY SEEM TO CONCLUDE BUT THIS IS NO JUSTIFICATION FOR JETTISONING THE CLASSICS OR FOR PLACING IGNORANCE AND KNOWLEDGE ON AN EQUAL PLANE MR RORTY IN PARTICULAR HAS COMPLAINED ABOUT POLITICAL CORRECTNESS AND ALL THREE SEEM CONTEMPTUOUS OF THE POLITICIZATION THAT CONVERTS ACADEMIC INQUIRY INTO PARTISAN PROSELYTIZING MESSRS RORTY FISH AND DERRIDA ARE ALL PROFESSIONAL SKEPTICS BUT THIS IS ANOTHER WAY OF SAYING THEY ARE PART OF THE WESTERN TRADITION WHICH IS UNIQUE IN THE WORLD FOR ITS WILLINGNESS TO CRITICIZE ITSELF THE PIED PIPERS OF ACADEME SEEM TO HAVE CALLED THE PROCESSION TO A HALT WILL THEIR ACADEMIC FOLLOWERS TURN BACK OR WILL THEY PROCEED HEADLONG TOWARD THE SEA MR D'SOUZA A FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE IS THE AUTHOR OF ILLIBERAL EDUCATION 1992 RANDOM HOUSE 9307270098 930727 INTERNATIONAL SUZUKI VOLKSWAGEN PLAN HALTED TOKYO SUZUKI MOTOR CORP OF JAPAN SAID IT AND VOLKSWAGEN AG AGREED TO SUSPEND A PLAN FOR JOINT DEVELOPMENT AND MANUFACTURE OF MINICARS IN SPAIN A SUZUKI SPOKESMAN SAID THE DECISION WAS MADE BY VW WHICH HAS BEEN INTENSIFYING ITS COSTCUTTING THROUGH REVIEW OF CAPITAL INVESTMENT AND THE RANGE OF MODELS IT PRODUCES HE ALSO SPECULATED THE RECENT APPRECIATION OF THE YEN AGAINST THE SPANISH PESETA MADE JOINT PRODUCTION USING SUZUKIMADE EQUIPMENT AND PARTS LESS ATTRACTIVE TO VW A SPOKESMAN AT VOLKSWAGEN AUDI NIPPON KK VW'S JAPANESE UNIT SAID HE WASN'T INFORMED OF ANYTHING REGARDING THE MATTER FROM THE GERMAN HEADQUARTERS CLOSED FOR SUMMER HOLIDAYS 9307270097 930727 RAWSTEEL PRODUCTION ROSE 11 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 11 LAST WEEK TO 1873000 TONS FROM 1853000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 75 FROM THE 1743000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 893 OF ITS CAPABILITY LAST WEEK COMPARED WITH 884 THE PREVIOUS WEEK AND 807 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9307270096 930727 CONTINENTAL'S BID MOVES FORWARD WASHINGTON THE TRANSPORTATION DEPARTMENT SAID IT TENTATIVELY SELECTED CONTINENTAL AIRLINES OVER UNITED AIRLINES FOR AUTHORITY TO FLY TO COLOMBIA COLOMBIAN TOURISM OFFICIALS HAD SUPPORTED UNITED'S BID BUT THE TRANSPORTATION DEPARTMENT SAID CONTINENTAL WON BECAUSE THE CARRIER WOULD SERVE TWO OTHER COLOMBIAN CITIES BESIDES BOGOTA ALSO CONTINENTAL WOULD FLY FROM ITS BASE IN HOUSTON WHEREAS UAL CORP'S UNITED AIRLINES WISHED TO FLY FROM MIAMI AMR CORP'S AMERICAN AIRLINES ALREADY FLIES BETWEEN MIAMI AND BOGOTA A FINAL DECISION ON THE ROUTE IS EXPECTED NEXT MONTH 9307270095 930727 INTERNATIONAL PACIFIC GAS & ELECTRIC TO SELL UNIT CALGARY ALBERTA PANALBERTA GAS LTD A GAS MARKETING UNIT JOINTLY OWNED BY NOVA CORP OF ALBERTA AND ALBERTA ENERGY CO SAID IT AGREED IN PRINCIPLE TO ACQUIRE ALBERTA & SOUTHERN GAS CO FROM PACIFIC GAS & ELECTRIC CO A SAN FRANCISCOBASED NATURAL GAS UTILITY TERMS OF THE TRANSACTION HAVEN'T BEEN FINALIZED A SPOKESWOMAN FOR PANALBERTA SAID SHE SAID SHE HAS NO IDEA WHEN THE TRANSACTION MIGHT CLOSE PANALBERTA IS A GAS AGGREGATOR AND MARKETER SELLING MORE THAN 500 BILLION CUBIC FEET OF GAS ANNUALLY ALBERTA & SOUTHERN OFFICIALS COULDN'T BE REACHED FOR COMMENT 9307270094 930727 INTERNATIONAL CHINA'S MACHINE EXPORTS BEIJING CHINA SOLD 877 BILLION IN MACHINERY AND ELECTRICAL GOODS ABROAD DURING THE FIRST HALF OF 1993 AN INCREASE OF 97 FROM LAST YEAR THE OFFICIAL CHINA DAILY REPORTED ACCORDING TO CHINESE CUSTOMS STATISTICS THE GOODS MADE UP 236 OF CHINA'S EXPORTS FOR THE SIXMONTH PERIOD WHICH TOTALED 3715 BILLION WHILE CHINESE EXPORTS REMAIN DOMINATED BY TEXTILES CLOTHING AND AGRICULTURAL GOODS THE GOVERNMENT HAS BEEN TRYING TO PROMOTE MORE EXPENSIVE EXPORTS THE BIGGEST MARKET FOR CHINESE MACHINES AND ELECTRICAL PRODUCTS IS IN ASIA THE NEWSPAPER SAID BUT PURCHASES BY THE US AND EUROPE CLIMBED SHARPLY THIS YEAR THE US BOUGHT 18 BILLION IN MACHINERY AND ELECTRICAL GOODS AN INCREASE OF 1857 FROM THE YEARAGO PERIOD 9307270093 930727 HYUNDAI SETS PRICE RISE FOUNTAIN VALLEY CALIF HYUNDAI MOTOR AMERICA THE US SALES ARM OF KOREA'S HYUNDAI MOTOR CO SAID IT RAISED THE PRICE OF ITS 1993 EXCEL AND ELANTRA MODELS AN AVERAGE OF 2 THE BASE PRICE FOR THE 1993 EXCEL NOW STARTS AT 6999 UP 11 OR 100 FROM 6899 THE BASE ELANTRA IS 9399 UP 26 OR 250 FROM 9149 9307270092 930727 DIVIDEND NEWS LYONDELL CUTS PAYOUT CITES POOR' CONDITIONS HOUSTON LYONDELL PETROCHEMICAL CO HALVED ITS QUARTERLY DIVIDEND TO 225 CENTS A SHARE BECAUSE OF A CONTINUING POOR BUSINESS ENVIRONMENT IN PETROCHEMICALS AND REFINING THE COMPANY LATE LAST WEEK REPORTED A LOSS FOR THE SECOND QUARTER OF 11 MILLION OR 14 CENTS A SHARE AFTER CHARGES FOR CANCELING A PROJECT AND FOR SHRINKING ITS WORK FORCE THAT COMPARED WITH 1992 SECONDQUARTER NET INCOME OF 10 MILLION OR 13 CENTS A SHARE REVENUE SLIPPED 11 TO 108 BILLION FROM 122 BILLION ATLANTIC RICHFIELD CO OWNS 499 OF THE COMMON SHARES OUTSTANDING OF LYONDELL THE CONTINUED WEAK BUSINESS ENVIRONMENT AND ITS ADVERSE IMPACT ON OUR FINANCIAL POSITION HAVE LED US TO IMPLEMENT A NUMBER OF ACTIONS TO CONSERVE CASH AND PREPARE THE COMPANY TO WEATHER A MORE PROLONGED DOWNTURN SAID LYONDELL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER BOB G GOWER IN ADDITION TO THE DIVIDEND CUT LYONDELL IS REDUCING ITS 1993 CAPITAL SPENDING BY 30 TO 70 MILLION A DECREASE IN THE SIZE OF THE WORK FORCE WILL SAVE THE COMPANY 10 MILLION IN ANNUAL COMPENSATION COSTS AND OTHER COST REDUCTIONS ARE EXPECTED TO SAVE ANOTHER 20 MILLION TO 40 MILLION A YEAR LYONDELL SAID THE REDUCED DIVIDEND IS PAYABLE SEPT 15 TO STOCK OF RECORD AUG 13 AS OF JUNE 30 LYONDELL HAD ABOUT 80 MILLION COMMON SHARES OUTSTANDING LYONDELL SHARES WERE TRADING LATE YESTERDAY AT 17375 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9307270091 930727 AGREEMENT IS REACHED ON UNDERWATER CABLE LINKING UK TO JAPAN NEW YORK BACKERS OF AN AMBITIOUS 12 BILLION UNDERSEA FIBEROPTIC LINK BETWEEN THE UNITED KINGDOM AND JAPAN REACHED A FORMAL AGREEMENT TO DEVELOP THE PROJECT NYNEX CORP ONE OF THE PARTNERS SAID THE AGREEMENT CLEARS THE WAY FOR A MAJOR STUDY OF UNDERWATER ROUTES FOR THE CABLE AND OTHER PLANNING STEPS THE PROJECT CALLED FIBEROPTIC LINK AROUND THE GLOBE WILL BE THE WORLD'S LONGEST FIBEROPTIC SUBMARINE CABLE WHEN IT IS COMPLETED IN 1996 NYNEX SAID SIGNING THE OFFICIAL MEMORANDUM OF UNDERSTANDING WERE GOVERNMENT AND CORPORATE OFFICIALS IN GIBRALTAR HONG KONG INDIA INDONESIA ITALY JAPAN MALAYSIA THAILAND UNITED ARAB EMIRATES AND THE UK NYNEX SAID IT ALSO EXPECTS SIGNATURES FROM EGYPT SAUDI ARABIA AND KOREA THE FLAG PROJECT IS A JOINT VENTURE OF NYNEX THE DALLAH AL BARAKA GROUP OF SAUDI ARABIA GULF ASSOCIATES INC OF NEW YORK AND MARUBENI CORP OF JAPAN 9307270090 930727 MARKETING & MEDIA REUTERS ANNOUNCES BUYBACK OF SHARES TO USE CASH HOARD BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN ORDER TO DRY UP ABOUT HALF OF ITS SURPLUS FUNDS REUTERS HOLDINGS PLC SAID IT WILL REPURCHASE AS MUCH AS 350 MILLION 525455 MILLION OF ITS STOCK REPRESENTING 584 OF ITS ISSUED ORDINARY SHARES ANALYSTS SAID THE MOVE SHOULD SATISFY INVESTORS WHO HAD BEEN WONDERING WHETHER THEY WOULD BENEFIT FROM THE BRITISH ELECTRONICINFORMATION COMPANY'S GROWING CASH HOARD REUTERS WILL PAY 14 2101 FOR EACH UK SHARE AND THE DOLLAR EQUIVALENT OF 42 FOR EACH AMERICAN DEPOSITARY RECEIPT CONVERTED AT A SPOT RATE FIXED SHORTLY BEFORE PAYMENT REUTERS SHARES LEAPT FOLLOWING THE ANNOUNCEMENT EVENTUALLY ENDING LATE IN LONDON AT 1440 PENCE UP 256 FROM FRIDAY THE STOCK HAS BEEN CLIMBING FAIRLY STEADILY OVER THE PAST 12 MONTHS AND MANY ANALYSTS EXPECT THE GAINS TO CONTINUE IN THE US THE ADRS ROSE 150 TO 65 IN OVERTHECOUNTER TRADING YESTERDAY AFTERNOON THE REPURCHASE PLAN WILL BENEFIT ALL SHAREHOLDERS AS IT WILL LEAD TO AN INCREASE IN REUTERS'S EARNINGS PER SHARE THE COMPANY SAID REUTERS IS DUE TO REPORT ITS HALFYEAR RESULTS TODAY FIRSTHALF PRETAX EARNINGS ARE EXPECTED TO RISE ABOUT 15 TO 215 MILLION COMPARED WITH 1874 MILLION A YEAR EARLIER IN AN INTERVIEW PETER JOB THE COMPANY'S CHIEF EXECUTIVE OFFICER SAID THE BUYBACK WAS ANNOUNCED A DAY EARLIER THAN SCHEDULED TO QUELL RUMORS THAT BEGAN SPREADING LATE LAST WEEK FOCUS ON CORE LINES THE BUYBACK IS A MATTER OF STEWARDSHIP IS REUTERS A BANK OR IS IT A BUSINESS THAT PRIMARILY INVESTS IN ITS CORE ACTIVITIES MR JOB SAID WE CLEARLY THINK IT'S THE LATTER ANALYSTS ESTIMATE REUTERS IS PULLING IN ABOUT 200 MILLION A YEAR MORE IN CASH THAN IT IS ABLE TO SENSIBLY INVEST CHAIRMAN SIR CHRISTOPHER HOGG SAID IN THE SAME INTERVIEW THAT THE BUYBACK SHOULD SETTLE THE ISSUE OF SURPLUS CASH FOR SEVERAL YEARS TO COME WE NOW EXPECT TO BE QUITE ACTIVE CONCENTRATING ON GETTING OUR INVESTMENT PROJECTS GOING AND LOOKING FOR ACQUISITIONS MR JOB SAID THE GROUP EXPECTS TO EXPAND IN TELEVISION NEWS PRODUCTION WE ARE GOING TO WORK ON ALL ASPECTS OF JOURNALISM BRINGING OUR EXPERTISE TOGETHER TO MAKE OURSELVES INTO A KIND OF MULTIMEDIA PRODUCER HE SAID REUTERS BOUGHT AN 18 STAKE IN THE LONDONBASED TELEVISION COMPANY ITN THE COMPANY ALSO INTENDS TO EXPAND ITS FINANCIAL TRADINGSERVICES DIVISIONS WHICH CURRENTLY ARE DIVIDED INTO THREE MAJOR AREAS THE INSTINET INTERNATIONAL EQUITY TRADING SYSTEM GLOBEX A JOINT VENTURE WITH THE CHICAGO FUTURES AND OPTIONS EXCHANGES TO DEAL AFTER HOURS IN DERIVATIVES AND DEALING 20002 FOR FOREIGN EXCHANGES 9307270089 930727 IN LEBANON SYRIA GETS AWAY WITH MURDER BY STEVEN EMERSON WITHIN HOURS OF ISRAEL'S ATTACKS ON TERRORIST BASES IN LEBANON ON SUNDAY THE US STATE DEPARTMENT ISSUED A STATEMENT SAYING THAT THE VIOLENCE IS CLEARLY COUNTERPRODUCTIVE AS FAR AS THE PEACE TALKS ARE CONCERNED BECAUSE THE UNDERLYING PROBLEMS ARE ONES THAT CAN BE ADDRESSED THROUGH THE PEACE PROCESS IN REALITY IT IS THE VERY TERMS OF THE PEACE PROCESS SET UP BY THE US THAT ARE RESPONSIBLE FOR THE VIOLENCE IT IS SYRIA THAT IS SOLELY RESPONSIBLE FOR THE RISE OF HEZBOLLAH IN LEBANON SYRIA CONTROLS MUCH OF THE FLOW OF IRANIAN WEAPONS TO HEZBOLLAH AS WELL AS THE TERRORIST BASES IN THE BEKAA VALLEY WHERE HEZBOLLAH FIGHTERS HONE THEIR TERRORIST SKILLS WHILE THERE IS NO DOUBT THAT HEZBOLLAH IS AN IRANIAN CREATION SYRIA COULD INSTANTLY TURN OFF THE TERROR SPIGOT IF IT SO DESIRED BUT SYRIA HAS NOT BEEN PENALIZED BY THE US FOR ITS SUPPORT OF HEZBOLLAH INDEED SYRIAN PRESIDENT HAFEZ ASSAD HAS BEEN ABLE TO REAP A PUBLICRELATIONS BONANZA IN THE WEST AND EARN POLITICAL CHIPS IN THE US FOR PARTICIPATING IN THE MIDDLE EAST PEACE PROCESS WHILE SIMULTANEOUSLY PLAYING HIS TERRORIST CARD THE MOST DISTURBING DEVELOPMENT HAS BEEN THE DEGREE TO WHICH THE US HAS PLAYED ALONG WITH SYRIA'S CHARADE IN SEVERAL APPEARANCES BEFORE CONGRESS THIS YEAR AMERICAN OFFICIALS HAVE POINTEDLY REFUSED TO CONDEMN SYRIA FOR ITS DIRECT SUPPORT OF HEZBOLLAH THE STATEMENT ISSUED SUNDAY BY FOGGY BOTTOM WILL ONLY SERVE TO REINFORCE ASSAD'S BELIEF THAT HE CAN GET AWAY WITH MURDER OUT OF THE RANGE OF AMERICAN TELEVISION CAMERAS AND NONETOOINQUISITIVE AMERICAN DIPLOMATS SYRIA HAS SKILLFULLY EXPLOITED THE AMERICAN HANDCUFFING OF ISRAEL IN LEBANON WHEREBY THE US ASSUMES THAT ISRAELI ACTION WILL ONLY UPSET THE PEACE TALKS DURING THE LAST SIX WEEKS ISRAEL QUIETLY PASSED ALONG WARNINGS TO SYRIA THROUGH AMERICAN AND EGYPTIAN DIPLOMATS AS WELL AS IN DIRECT BROADCASTS ON ISRAEL'S ARABIC RADIO SERVICE WARNING SYRIA TO REIN IN HEZBOLLAH DURING THE SAME PERIOD THE US REQUESTED IN DISCUSSIONS WITH ISRAELI OFFICIALS THAT ISRAEL NOT ATTACK HEZBOLLAH TARGETS CLAIMING THAT THE US WOULD SOLVE THE PROBLEM DIPLOMATICALLY WELL IT DIDN'T IN THE PAST MONTH HEZBOLLAH TOGETHER WITH SYRIANHEADQUARTERED TERRORIST AHMED JIBRIL KILLED SEVEN ISRAELI SOLDIERS IN ISRAEL'S SECURITY ZONE AND LAUNCHED KATYUSHA ROCKET ATTACKS IN NORTHERN ISRAEL UNTIL SUNDAY ISRAEL HAD DONE VERY LITTLE THE PATTERN IS DANGEROUSLY FAMILIAR UNTIL JUNE 1982 ISRAEL ACQUIESCED DUE LARGELY TO AMERICAN PRESSURE IN THE BUILDUP OF A VAST MILITARY FORCE IN SOUTHERN LEBANON BY THE PALESTINIAN LIBERATION ORGANIZATION FINALLY ISRAEL WENT IN TO CLEAN OUT THE PLO TERRORIST NEST AND FOUND ENOUGH WEAPONS TO EQUIP A 500000MAN ARMY FOLLOWING ISRAEL'S WITHDRAWAL FROM LEBANON HEZBOLLAH THE LEBANESE SHIITE AMAL GROUP AND OTHER PALESTINIAN TERRORIST GROUPS BEGAN POURING BACK INTO SOUTHERN LEBANON IN THE YEAR FOLLOWING THE OCTOBER 1991 MIDDLE EAST PEACE TALKS IN MADRID THE LEBANESE ARMY UNDER SYRIAN DIRECTION DISARMED AMAL AND MANY OF THE PALESTINIAN GROUPS AN ACT TO WHICH DAMASCUS POINTED IN DISCUSSIONS WITH US DIPLOMATS AS EVIDENCE OF SYRIA'S COMMITMENT TO MODERATION IN FACT SYRIA DISARMED THESE GROUPS LARGELY AS A MEANS OF ELIMINATING THREATS TO ITS OWN HEGEMONY IN LEBANON A COUNTRY IT HAS NEVER RECOGNIZED DIPLOMATICALLY AT THE SAME TIME HOWEVER WHEN THE LEBANESE ARMY WANTED TO DISARM HEZBOLLAH SYRIA REFUSED AND INSTEAD FACILITATED ITS ACQUISITION OF A VAST ARSENAL OF NEW WEAPONS MUCH OF IT DELIVERED THROUGH DAMASCUS ACCORDING TO ISRAELI AND US INTELLIGENCE REPORTS THESE WEAPONS TRANSFORMED THE 5000MAN HEZBOLLAH FORCE INTO THE MOST LETHAL TERRORIST GROUP IN THE WORLD TODAY IT IS A MATTER OF PUBLIC RECORD THAT HEZBOLLAH HAS LAUNCHED MORE ATTACKS AGAINST ISRAELI POSITIONS AND KILLED MORE ISRAELIS IN THE ONE YEAR SINCE PRIME MINISTER RABIN TOOK OFFICE THAN IN THE YEAR PRECEDING HIS TENURE WHEN YITZHAK SHAMIR WAS IN POWER CLEARLY HEZBOLLAH'S DESIGNS ARE NO DIFFERENT THAN THOSE OF THE RADICAL JIHAD GROUP IN EGYPT WHICH HAS BOMBED DOWNTOWN CAIRO HEZBOLLAH'S DESIGNS ARE ALSO NO DIFFERENT THAN THOSE OF THE HAMAS TERRORISTS WHO ONLY TWO WEEKS AGO EXECUTED TWO ISRAELI WOMEN OR THOSE OF THE RADICAL FUNDAMENTALISTS IN NEW YORK WHO BOMBED THE WORLD TRADE CENTER AS A HEZBOLLAH COMMUNIQUE STATED THIS SPRING FOLLOWING THE WORLD TRADE CENTER BOMBING WE DECLARE OUR SOLIDARITY WITH ANYONE WHO WOULD RID THE WORLD OF THE ZIONIST INTERLOPERS AND WESTERN PAGANISM THE NOTION THAT HEZBOLLAH TERRORISM CAN BE REDUCED TO UNDERLYING PROBLEMS THAT CAN BE ADDRESSED THROUGH THE PEACE PROCESS IS TANTAMOUNT TO ACCEPTING THE LEGITIMACY OF RADICAL ISLAMIC FUNDAMENTALIST DEMANDS BY NOT UNAMBIGUOUSLY CATEGORIZING HEZBOLLAH AS TERRORISTS THE US GOVERNMENT AND AMERICAN JOURNALISTS HAVE EFFECTIVELY SET UP A DOUBLE STANDARD ONLY THOSE RADICAL FUNDAMENTALISTS WHO ATTACK AMERICAN TARGETS SUCH AS THE WORLD TRADE CENTER ARE TERRORISTS RADICAL FUNDAMENTALIST GROUPS THAT ATTACK ISRAELI TARGETS ARE EITHER MILITANTS ACTIVISTS OR AT WORST GUERRILLAS THIS WEEK SECRETARY OF STATE WARREN CHRISTOPHER WILL HEAD TO THE MIDDLE EAST INSTEAD OF HIS FOCUSING ON THE MIDDLE EAST PEACE TALKS AS INITIALLY PLANNED IT IS ALL BUT CERTAIN THAT HE WILL NOW FOCUS HIS ATTENTION ON REACHING AN AGREEMENT BETWEEN ISRAEL AND SYRIA ON CONTAINING THE VIOLENCE IN LEBANON UNDOUBTEDLY PRESIDENT ASSAD WILL THEN BE REWARDED BY THE US FOR HIS NEWFOUND MODERATION MR EMERSON IS WRITING A BOOK ON ISLAMIC FUNDAMENTALISM 9307270088 930727 STATES' FINANCES ARE IMPROVING SURVEY REPORTS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR STATES MONEY MATTERS ARE FINALLY IMPROVING SORT OF AFTER SEEING THEIR FINANCES DETERIORATE SHARPLY IN THE LATE 1980S AND EARLY 1990S MANY STATES ARE SHOWING IMPROVED BALANCE SHEETS ACCORDING TO A SURVEY OF STATE LAWMAKERS STATE FISCAL CONDITIONS ARE SOLID THOUGH THEY AREN'T GREAT SAID RONALD SNELL FISCAL PROGRAM DIRECTOR FOR THE NATIONAL CONFERENCE OF STATE LEGISLATURES WHICH RELEASED THE REPORT YESTERDAY AT A MEETING IN SAN DIEGO THE ECONOMIC EXPANSION IS THE BIGGEST FACTOR BEHIND THE IMPROVEMENT ANALYSTS SAID EVEN 25 REAL GROWTH IS INFINITELY BETTER THAN A DECREASE OF 1 SAID STEVEN GOLD DIRECTOR OF THE CENTER FOR THE STUDY OF STATES IN ALBANY NY IT GIVES STATES QUITE A BIT OF ADDITIONAL REVENUE EVEN THOUGH THE INCREASES AREN'T LARGE BUT WITH TAX REVENUES PROJECTED TO GROW AT ONLY A SLUGGISH PACE AND VOTERS LARGELY OPPOSED TO HIGHER TAXES STATES FACE TOUGH CHOICES FOR YEARS TO COME AMONG THE TRENDS CITED IN THE REPORT STATE BUDGETS FOR FISCAL 1994 SHOW A CONTINUING SHIFT IN FUNDING AWAY FROM HIGHER EDUCATION AND TOWARD MEDICAID AND CORRECTIONS IN FISCAL 1993 FOR THE FIRST TIME STATE FUNDING OF MEDICAID THE FEDERAL/STATE HEALTH PROGRAM FOR LOWINCOME PEOPLE EXCEEDED THAT OF HIGHER EDUCATION ULTIMATELY THE SHIFT WILL FORCE POLICY MAKERS AND VOTERS TO DECIDE WHAT THEY WANT TO DO IN TERMS OF SUPPORT FOR HIGHER EDUCATION AND OTHER PROGRAMS SAID MR SNELL WHILE A LOT OF PEOPLE AGREE THAT WE CAN'T BUILD OUR WAY OUT OF THE PRISON PROBLEM STATES HAVEN'T FOUND ALTERNATIVES THAT ARE APPEALING OR COSTEFFECTIVE YEAREND BALANCES THE BEST SNAPSHOT OF THE STATES' FISCAL CONDITION RECOVERED SOMEWHAT IN FISCAL 1993 AVERAGE YEAREND BALANCES GREW TO 37 OF SPENDING FROM 12 AT THE END OF 1992 THAT EXCLUDES CALIFORNIA AND VERMONT WHICH RAN DEFICITS BUT MORE THAN HALF THE 78 BILLION IN BALANCES BELONGED TO JUST FOUR STATES ALASKA MINNESOTA NEW JERSEY AND TEXAS MOST STATES AVOIDED BIG TAX INCREASES IN FISCAL 1993 REFLECTING THE ECONOMIC UNCERTAINTY AND ANTIGOVERNMENT MOOD OF THE ELECTORATE ACCORDING TO THE SURVEY FEWER LEGISLATORS SEEM WILLING TO VOTE TAX INCREASES FOR ANY REASON SAID HAL HOVEY EDITOR OF STATE BUDGET AND TAX NEWS A NEWSLETTER BASED IN COLUMBUS OHIO 9307270087 930727 TECHNOLOGY UPJOHN TO SET UP CHINA VENTURE KALAMAZOO MICH UPJOHN CO SAID IT AGREED TO ESTABLISH A JOINT VENTURE IN CHINA WITH SUZHOU PHARMACEUTICAL FACTORY NO 4 A MAKER OF BULK PHARMACEUTICALS TO MAKE UPJOHN PRODUCTS IN CHINA TERMS OF THE AGREEMENT WEREN'T DISCLOSED THE JOINT VENTURE UPJOHN SUZHOU PHARMACEUTICAL CO WILL INVEST AS MUCH AS 30 MILLION IN A DRUG MANUFACTURING PLANT TO BE BUILT IN SUZHOU UPJOHN WILL OWN 75 OF THE VENTURE AND SUZHOU PHARMACEUTICAL WILL HOLD 25 9307270086 930727 WORKPLACE FRICTION TO SOME SMALL FIRMS IDEA OF COOPERATING WITH LABOR IS FOREIGN TRENDY CONCEPTS FEEL LIKE POWER STRUGGLE TO OWNER OF A TRASHBIN COMPANY IT'S MINE VS I WANT MY SHARE BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL SYLMAR CALIF NEARLY FOUR YEARS INTO HIS COMPANY'S LABOR DISPUTE A BITTER ART NEVILL WONDERS IF THE BUSINESS WILL BE ABLE TO SURVIVE SALES AT THE COMPANY HE RUNS AND HALFOWNS REFUSE COMPACTOR SERVICE INC HAVE SLIPPED SO MUCH FROM NEARLY 7 MILLION IN 1989 THAT I'LL BE LUCKY TO DO 2 MILLION THIS YEAR HE SAYS AND NO ONE CAN PUT A PRICE TAG ON THE EMOTIONAL TOLL A DETERIORATING LABOR SITUATION AT REFUSE COMPACTOR CULMINATED IN A STRIKE IT LEFT JESUS VELA A FORMER WELDER AT THE COMPANY FINDING ONLY DAYTODAY WORK AND SEPARATED FROM HIS WIFE AT HOME LITTLE PROBLEMS WOULD BECOME BIG PROBLEMS HE LAMENTS IN SPANISH ONE DAY MR NEVILL HIT A PICKETING WORKER WITH A FORKLIFT LATER HE BECAME SO ANGERED BY STRIKERS SHOUTING OBSCENE COMMENTS AND MAKING LEWD GESTURES AT HIS WIFE THAT HE GRABBED A UNITED AUTO WORKERS PICKET SIGN AND BURNED IT CERTAINLY THAT WASN'T THE MESSAGE PRESIDENT CLINTON WAS PROMOTING AT A CHICAGO CONFERENCE YESTERDAY TO BOOST LABORMANAGEMENT COOPERATION COMPANIES IN THIS COUNTRY MUST KNOW THAT YOU CAN GROW AND PROSPER BY TREATING WORKERS AS INDISPENSABLE PARTNERS THE PRESIDENT TOLD A GROUP OF 400 CORPORATE EXECUTIVES LABOR LEADERS AND ACADEMICS THIS IS AN OPPORTUNITY WE HAVE TO SEIZE BUT MANY SMALL BUSINESSES THINK SUCH CONCEPTS AS WORKERMANAGEMENT TEAMS ARE A BIG COMPANY'S GAME FOR THE SMALLEST FIRMS YOU START TALKING ABOUT THINGS LIKE THAT AND THEY DIE LAUGHING SAYS WILLIAM DENNIS SENIOR RESEARCH FELLOW AT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS A SMALLBUSINESS LOBBYING GROUP INDEED AT SMALL COMPANIES THE DEMOCRACY MR CLINTON IS URGING CAN RUN SMACK INTO AUTOCRACY OWNERS OFTEN SAY IT'S MY PLANT I OWN IT I CREATED IT AND NO ONE IS GOING TO TELL ME HOW TO RUN IT SAYS MELVIN WELLES CHIEF ADMINISTRATIVE LAW JUDGE AT THE NATIONAL LABOR RELATIONS BOARD ADMINISTRATION OFFICIALS ACKNOWLEDGE THE DIFFICULTY OF SHIFTING US COMPANIES TO A NEW LEVEL OF TEAMWORK MANAGERS GOT TO WHERE THEY ARE BECAUSE THEY WERE GOOD AT CONTROLLING IT'S A LITTLE SCARY TO GIVE UP THAT CONTROL SAYS LABOR SECRETARY ROBERT REICH THERE'S A LOT OF DISTRUST BETWEEN WORKERS AND MANAGERS OUT THERE MANY SMALLBUSINESS OWNERS CLEARLY WORK CLOSELY WITH THEIR WORKERS BUT WHILE SMALL FIRMS OUTNUMBER LARGE FIRMS OVERALL THEY ARE FAR LESS LIKELY TO BE UNIONIZED THAN LARGE ONES AND MOST NLRB COMPLAINTS ARE FILED BY UNIONS TWOTHIRDS OF UNFAIR LABOR PRACTICE COMPLAINTS ARE FILED AGAINST EMPLOYERS WITH FEWER THAN 100 WORKERS ACCORDING TO NLRB FIGURES INCREASINGLY UNIONS TARGET SMALL FIRMS FOR MEMBERSHIP EXPANSION LAST YEAR THEY WON CERTIFICATION AT FIRMS WITH FEWER THAN 50 WORKERS AT A RATE TWICE THAT OF COMPANIES WITH MORE THAN 500 THE BUREAU OF NATIONAL AFFAIRS CALCULATES THE LABOR CONFLICT AT REFUSE COMPACTOR SHOWS WHAT CAN GO WRONG WHEN A PROUD INDEPENDENT OWNER FACES WORKERS MAKING DEMANDS ON THAT INDEPENDENCE MR NEVILL STARTED REFUSE COMPACTOR IN THE SAN FERNANDO VALLEY IN 1970 WITH 200 BUILDING THE BUSINESS WAS FUN HE RECALLS HE AND PARTNER GENE BUTTERFIELD HIRED ONE EMPLOYEE AND TOGETHER THEY STARTED MAKING LARGE TRASH BINS BUT MR NEVILL WASN'T AN EASY MAN TO WORK FOR HE USED TO SCREAM AT YOU EVERY DAY SAYS JAVIER SORIANO WHO JOINED REFUSE AS A WELDER IN 1976 MR SORIANO TELLS OF ASKING MR NEVILL TO GIVE MR VELA WHO SPOKE NO ENGLISH A 25CENT RAISE TO 650 AN HOUR ART SAID HE COULD DO IT IF HE TOOK THE MONEY FROM ME MR SORIANO SAYS MR SORIANO WHO WOULD BECOME COCHAIRMAN OF THE UNIONBARGAINING COMMITTEE SAYS MR NEVILL ALSO FORCED WELDERS TO WORK IN THE RAIN AND SAFETY INSPECTORS CITED REFUSE FOR A STRING OF PROBLEMS IN THE EARLY 1980S MR NEVILL COUNTERS THAT THE INSPECTORS CAME IN ONLY AFTER A DRUNK WORKER CUT OFF THREE FINGERS IN A MACHINE MR NEVILL ACKNOWLEDGES MORALE PROBLEMS AT THE PLANT BUT SAYS THEY STEMMED MOSTLY FROM WORKERS' COMPARING PAYCHECKS THE 47YEAROLD ENTREPRENEUR SAYS HE LIKES TO GIVE RAISES TO THE EMPLOYEES WHO WORK HARDEST FOR THE OTHERS HE SAYS I TOLD THEM TO HUSTLE MORE YOU MAKE ME MORE MONEY YOU'LL MAKE MORE MONEY I'M NOT ABOUT TO GIVE RAISES TO PEOPLE WHO SAY PAY ME MORE MONEY OR I WON'T WORK HARD' THAT'S NOT AMERICAN DESPITE THE WORK ENVIRONMENT OR PERHAPS BECAUSE OF IT REFUSE COMPACTOR GREW INTO A SUCCESSFUL SMALL MANUFACTURING BUSINESS BY 1989 IT HAD HIRED A FULLTIME SALESMAN TWO FOREMEN AND A PLANT MANAGER SIXTYFOUR WORKERS REPORTED TO THEM THE COMPANY HAD A BACKLOG OF MORE THAN TWO MONTHS REMARKABLE FOR AN INDUSTRY WHERE CUSTOMERS WANT THEIR PRODUCTS YESTERDAY IT WAS SO NOISY IN HERE YOU COULDN'T HEAR YOURSELF THINK SIGHS MR NEVILL PACING IN THE PLANT'S CONFERENCE ROOM BUT TROUBLE WAS BREWING THE MIX OF MR NEVILL'S CANTANKEROUS PERSONALITY WORKERS' DISCONTENT OVER PAY AND TWO STRONG EXTERNAL FORCES THE UAW AND THE SLOWING CALIFORNIA ECONOMY WOULD SOON PROVE TOO MUCH THE SITUATION IS MIRRORED DAILY AT SMALL COMPANIES NATIONWIDE WHERE WORKERS MUST DEAL DIRECTLY WITH THE OWNER'S PERSONAL STYLE WHETHER THAT'S RESPECTFUL AND COOPERATIVE OR DOMINEERING AND ARROGANT SAYS AUDREY FREEDMAN A NEW YORK LABOR ECONOMIST IT ISN'T JUST THE OWNER'S FAULT WORKERS WHO OFTEN DON'T SEE WHAT IT TAKES TO RUN A BUSINESS OR MEET A PAYROLL FREQUENTLY VIEW THEIR EMPLOYER'S SUCCESS AS AN OPPORTUNITY TO GET A SHARE AT LARGER COMPANIES LABOR EXPERTS SAY THAT DIVERGENCE IS USUALLY SMOOTHED BY A PHALANX OF TRAINED MANAGERS AND PERSONNEL PROFESSIONALS SCHOOLED IN THE SCIENCE OF LABOR DISPUTES BUT AT SMALLER COMPANIES WHICH DON'T HAVE THE TRAINING RESOURCES OR KNOWHOW THE CLASH CAN BE DEVASTATING IN THE SPRING OF 1989 TONY ABUANZA AND ANOTHER EMPLOYEE STEPPED INTO REFUSE COMPACTOR'S WHITE CINDERBLOCK OFFICE BUILDING AND TOLD PLANT MANAGER GEORGE MILLER AND MR NEVILL'S WIFE LINDA THAT THE WORKERS WANTED MORE PAY AN EXTRA WEEK OF VACATION AND ANOTHER HOLIDAY MR MILLER TOLD THEM TO PUT THEIR REQUEST IN WRITING BUT WORKERS APPARENTLY TOOK THAT AS REJECTION A WEEK LATER THE COMPANY RECEIVED A LETTER FROM THE UAW SAYING THAT WORKERS HAD SIGNED CARDS SEEKING A VOTE ON REPRESENTATION FROM THE UNION WITHIN WEEKS THE WORKERS HOPING FOR HIGHER PAY AND RELIEF FROM WORKPLACE PRESSURE VOTED THE UNION IN 2917 WITH A THIRD PARTY INVOLVED IN ENSUING CONTRACT NEGOTIATIONS RELATIONS BETWEEN REFUSE COMPACTOR AND ITS WORKERS DETERIORATED QUICKLY MR SORIANO SAYS THAT IN A MEETING WITH ABOUT A DOZEN WORKERS MR NEVILL TOLD THEM THAT THE EXPLETIVE UNION WILL NEVER TELL ME WHAT TO DO IN MY SHOP ADDING HOW WOULD YOU LIKE IT IF I TOLD YOU WHAT TO DO IN YOUR HOUSE ONCE THE WORK FORCE JOINS A UNION LABOR OFFICIALS SAY MANY BUSINESS OWNERS INITIALLY TAKE A HARDLINE STANCE BUT SOFTEN IT AS THEY GROW ACCUSTOMED TO THE NEW BALANCE OF POWER MR NEVILL NEVER DID THAT RESISTANCE IN TURN LED TO A STRING OF MISCALCULATIONS BY THE UNION FRUSTRATED BY A LACK OF PROGRESS ON A CONTRACT THE UAW HOPING TO IMPROVE THE WORKERS' LEVERAGE GOT STRIKE AUTHORIZATION FROM THEM THE MOVE NEVER WAS MEANT TO RESULT IN A WALKOUT SAYS REPRESENTATIVE ERNIE SHELTON BUT MR NEVILL SEEING HIS 20YEAROLD CREATION SLIP INTO OUTSIDERS' HANDS PRESENTED A FINAL OFFER AND CALLED WORKERS IN TO ARGUE THAT THE UNION WAS A BAD IDEA HE COMPARED THE UNION WITH LIVING IN RUSSIA SEVERAL WORKERS SAY THOUGH MR NEVILL DENIES HE USED THAT TERM AND WORKERS SAY HE GAVE SOME EMPLOYEES RAISES TO WIN THEIR BACKING SOMETHING MR NEVILL ALSO DENIES AS MR NEVILL FOUGHT BACK THE UNION WORRIED THAT ITS SUPPORT WAS DWINDLING TURNED ITS THREAT INTO REALITY ON NOV 17 1989 THE WORKERS CALLED A STRIKE NEITHER SIDE EXPECTED MORE THAN A TWOWEEK IMPASSE AT 100 A WEEK IN STRIKE PAY FROM THE UAW IT WOULD BE TOUGH FOR THE WORKERS TO LIVE AT THE SAME TIME THE UAW FELT THAT IT COULDN'T SHOW WEAKNESS LEST IT DEMONSTRATE TO OTHER BUSINESS OWNERS THAT A HARD LINE WOULD SOFTEN IT FORTYTHREE WORKERS STAYED OUT THAT FIRST WEEK MANY WALKING THE PICKET LINES ON INDUSTRIAL FOOTHILL BOULEVARD IN FRONT OF THE PLANT PROPERTY LEADERS OF THE UNION LOCAL BOLSTERED THE FORCES BY THE SECOND WEEK MORE THAN A DOZEN WORKERS RETURNED TO THEIR JOBS AS THE STRIKE DRAGGED ON FOR WEEKS AND THEN MONTHS MORALE DECAYED GRADUALLY THE NUMBER OF PICKETS SHRANK TO 17 WITH MANY WORKERS WALKING AWAY TO FIND OTHER EMPLOYMENT OR RETURN TO MEXICO MR NEVILL'S BUSINESS BEGAN TO SUFFER TOO CUSTOMERS COMING TO THE GATE HAD TO WAIT UNTIL STRIKERS MOVED FROM IN FRONT OF THE DRIVEWAY EVENTUALLY THEY DECLINED TO COME TRUCK DRIVERS WERE PRODDED TO KEEP AWAY MANY DID IT WAS VERY DEPRESSING RECALLS TOM REHDER A FORMER REFUSE FOREMAN WHO HAS SINCE GONE TO WORK FOR CUBIC CONTAINER MANUFACTURING A DIRECT COMPETITOR IT WAS LIKE GOING TO THE DENTIST EVERY DAY AND HAVING ROOT CANAL EXCEPT ON THE WAY TO ROOT CANAL YOU'D GET VERBALLY ABUSED AS REFUSE'S BACKLOG DWINDLED EVEN EMPLOYEES WHO HAD RETURNED STARTED TO LOSE WORK NEW ORDERS WEREN'T COMING IN THE SALESMAN FRUSTRATED LEFT TAKING CUSTOMERS WITH HIM FOR THE STRIKERS AND MR NEVILL EMOTION BEGAN TO TAKE OVER ONE MORNING IN JANUARY 1990 A TRUCK DRIVER CAME TO THE GATE TO PICK UP SIX TOOL BOXES THE COMPANY HAD MADE BUT HE REFUSED TO CROSS THE PICKET LINE SO MR NEVILL WHO WANTED THE 2000 SALE AGREED TO BRING THE LARGE STEEL BOXES OUT TO THE STREET CLIMBING ABOARD THE FORKLIFT THE OWNER BEGAN DRIVING TOWARD THE GATE FIVE STRIKERS INCLUDING WELDER REGULO CATALAN WALKED SLOWLY ACROSS THE DRIVEWAY WITH BLUE AND WHITE UAW PICKET SIGNS MR ARTURO AS THE WORKERS CALLED MR NEVILL HIT MR CATALAN IN THE ARM WITH THE TOOL BOXES AS HE DROVE PAST MR NEVILL LOADED THE TOOL BOXES FROM THE FORKLIFT ONTO THE TRUCK THE STRIKERS HAD RESUMED THEIR WALKING MR NEVILL CLIMBED ABOARD THE FORKLIFT AGAIN AND TOLD THE WORKERS TO GET OUT OF THE WAY THEN DRIVING IN REVERSE HE HIT MR CATALAN'S LEG MR NEVILL DROVE BACK TO THE PLANT PROPERTY SMILING WORKERS LATER TESTIFIED TO THE NLRB MR NEVILL FOR HIS PART SAYS THE WORKER FAKED THE ACCIDENT HE'D BE DEAD IF I RAN OVER HIM HE SAYS WEEKS LATER MR NEVILL HIS FRUSTRATION MOUNTING CONFRONTED MR SORIANO SWINGING THE FACTORY GATE INTO HIM AND BRUISING HIS RIBS MR NEVILL CONTENDS THAT THE GATE COULDN'T HAVE INJURED THE WORKER AND SAYS MR SORIANO WAS TRYING TO BE HIT THE UAW'S LAWYER WILLIAM HEINE COUNTERS THAT MR NEVILL HAD A SUICIDE WISH HE'D RATHER PUT HIMSELF OUT OF BUSINESS THAN NEGOTIATE WITH THE UNION IN AUGUST 1990 THE 17 REMAINING STRIKERS MANY BROKE AND DISILLUSIONED OFFERED TO RETURN UNCONDITIONALLY ONLY THREE HAVE BEEN HIRED BACK THE TWO SIDES CONTINUE TO WAGE A LEGAL BATTLE AS REFUSE'S BUSINESS REMAINS DEPRESSED ON THE WALL OF THE UAW'S MEETING HALL IN NORTH HOLLYWOOD A SIGN PROCLAIMS PROGRESS TOGETHER BUT IN REFUSE'S CASE AS WITH MANY LABOR DISPUTES THERE ARE NO WINNERSUNLESS ONE COUNTS LAWYERS AND COMPETITORS THE COMPANY'S WORK FORCE HAS DROPPED TO ABOUT 15 FROM MORE THAN 60 THE UAW LOCAL HAS SPENT FAR MORE THAN IT CAN EVER HOPE TO RECOUP IN UNION DUES AND THIS MAY THE NLRB UPHELD AN ADMINISTRATIVE LAW JUDGE'S RULING THAT MR NEVILL HAD COMMITTED A STRING OF UNFAIR LABOR PRACTICES AGAINST HIS FORMER WORKERS INCLUDING SWIPING MR CATALAN WITH THE FORKLIFT IN RECENT DAYS NLRB INVESTIGATORS HAVE BEEN PORING OVER HIS RECORDS TRYING TO DETERMINE HOW MUCH MR NEVILL OWES IN BACK PAY TO THE STRIKERS THE UNION CLAIMS THAT REFUSE SHOULD PAY OVER 300000 MR NEVILL WHOSE COMPANY HAD A LOSS OF 280000 IN THE QUARTER ENDED DEC 31 THE MOST RECENT FOR WHICH HE HAS RECORDS DOESN'T THINK HE HAS THE MONEY HE IS CONSIDERING FILING FOR BANKRUPTCY PROTECTION IF THE BACKPAY CLAIM IS HIGH BOTH SIDES REMAIN DISILLUSIONED THE STRIKING WORKERS HAVE LONG SINCE GIVEN UP HOPES OF WORKING FOR REFUSE AGAIN MEANWHILE MR NEVILL CONSIDERS HIS BUSINESS TO BE BACK TO 1975 IN SIZE CONCLUDES THE OWNER I HOPE I NEVER SEE ANOTHER EMPLOYEE OR ANOTHER NLRB PERSON IN MY LIFE 9307270085 930727 WHO'S NEWS PREMIER BANCORP INC AGREES TO BUY ALERION NAMES NEW PRESIDENT BATON ROUGE LA PREMIER BANCORP INC SAID IT AGREED TO BUY PRIVATELY HELD ALERION CORP A NEW ORLEANS BANKING CONCERN AND ITS SUBSIDIARY ALERION BANK FOR 47 MILLION ALERION BANK HAD ASSETS OF 341 MILLION AT JUNE 30 AND NINE BRANCH LOCATIONS IN THE NEW ORLEANS AREA PREMIER BANCORP HAS 99 BRANCH OFFICES IN LOUISIANA AND ASSETS OF 38 BILLION IN LATE OVERTHECOUNTER TRADING YESTERDAY PREMIER BANCORP WAS QUOTED AT 1575 DOWN 125 CENTS THE TRANSACTION IS SUBJECT TO REGULATORY APPROVAL PREMIER BANCORP SAID IT EXPECTS TO CLOSE THE ACQUISITION DURING THE FOURTH QUARTER OF THIS YEAR SEPARATELY THE BANK HOLDING COMPANY SAID F WALTER LOCKETT JR 55 YEARS OLD WAS ELECTED TO SERVE AS PRESIDENT AND CONTINUE AS A DIRECTOR CHAIRMAN AND CHIEF EXECUTIVE G LEE GRIFFIN HAD HELD THE PRESIDENT'S TITLE MR LOCKETT HAS BEEN PRESIDENT OF PREMIER BANK A SUBSIDIARY PREMIER BANCORP ALSO INCREASED ITS BOARD BY TWO TO 25 ADDING H BROOKS MCELVEEN 58 AND R NEIL WILLIAMS 40 MR MCELVEEN FORMERLY EXECUTIVE VICE PRESIDENT ALSO WAS PROMOTED TO PRESIDENT OF PREMIER BANK SUCCEEDING MR LOCKETT MR WILLIAMS CURRENTLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ALSO ASSUMED THE TITLE OF VICE CHAIRMAN 9307270084 930727 COASTAL'S ANR TO REDEEM BONDS HOUSTON COASTAL CORP SAID ITS ANR PIPELINE CO PLANS TO REDEEM ALL 53 MILLION OF ITS 9625 FIRST MORTGAGE PIPELINE BONDS DUE 1994 AND ALL 45 MILLION OF ITS 10625 FIRST MORTGAGE PIPELINE BONDS DUE 1995 COASTAL SAID THE 1994 BONDS WILL BE REDEEMED AT 100 OF PAR PLUS ACCRUED INTEREST THE 1995 BONDS WILL BE REDEEMED AT 10056 COASTAL IS A HOLDING COMPANY WITH OIL GAS AND COAL INTERESTS 9307270083 930727 MARKETING & MEDIA LIZ CLAIBORNE JAPANESE ENTRY NEW YORK APPAREL AND FRAGRANCE MAKER LIZ CLAIBORNE INC SAID IT PLANS TO OPEN TWO STORES IN JAPAN THIS FALL MARKING THE COMPANY'S ENTRANCE INTO THE JAPANESE RETAIL MARKET THE COMPANY ALREADY SELLS SPORTSWEAR AND ACCESSORIES IN JAPAN THROUGH THE OTTOSUMISHO CATALOG A UNIT OF THE GERMAN COMPANY OTTOVERSAND THE NEW RETAIL STORES WILL OPEN IN SEPTEMBER THE FIRST IN HIROO AND THE SECOND IN YOKOHAMA LIZ CLAIBORNE ENTERED INTO AN AGREEMENT WITH KK CABIN CO OF JAPAN TO OPERATE THE TWO RETAIL STORES MARUBENI CORP WHICH HAS BEEN A FABRIC SUPPLIER TO THE COMPANY WILL BE LIZ CLAIBORNE'S PRIMARY IMPORTER IN JAPAN 9307270082 930727 WHO'S NEWS WORLD COLOR PRESS INC WORLD COLOR PRESS INC NEW YORK JOHN VAN HORN 52 YEARS OLD WAS NAMED PRESIDENT OF THE ALDEN PRESS CO UNIT OF THE DIVERSIFIED PRINTER MR VAN HORN WHO HAD BEEN SENIOR VICE PRESIDENT OF ALDEN SUCCEEDS JEROME B SPIER 65 WHO WAS NAMED TO THE NEWLY CREATED POSITION OF VICE CHAIRMAN OF WORLD COLOR WORLD COLOR IS HELD BY A LIMITED PARTNERSHIP CONTROLLED BY LEVERAGED BUYOUT FIRM KOHLBERG KRAVIS ROBERTS & CO 9307270081 930727 ABREAST OF THE MARKET INDUSTRIAL AVERAGE GAINS 2096 SETTING A RECORD CLOSE OF 356770 BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A RALLY IN ECONOMICALLY SENSITIVE STOCKS AND NEW STABILITY IN THE BOND MARKET POWERED THE DOW JONES INDUSTRIAL AVERAGE TO ANOTHER RECORD CLOSE SINCE MIDDAY FRIDAY THE INDUSTRIAL AVERAGE HAS RISEN MORE THAN 40 POINTS YESTERDAY THE AVERAGE JUMPED 2096 OR 059 TO 356770 EASILY TOPPING ITS RECORD OF 355540 THAT WAS SET WEDNESDAY BROADER INDEXES ALSO ADVANCED BUT THEY REMAIN MORE THAN 1 FROM HISTORICAL PEAKS THE STANDARD & POOR'S 500STOCK INDEX ADDED 199 OR 045 TO 44909 THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX INCREASED 122 OR 049 TO 24868 AND THE DOW JONES EQUITY MARKET INDEX JUMPED 199 OR 047 TO 42664 OBSERVERS TIED THE GAINS IN CYCLICAL ISSUES TO INVESTORS' INCREASING CONFIDENCE THAT THE ECONOMY IS IMPROVING ALSO CITED WERE HOPES OF A GERMAN INTEREST RATE CUT WHEN THE BUNDESBANK MEETS THURSDAY A READING ON THE HOUSING MARKET THIS MORNING WAS UPBEAT BUT ANALYSTS DOWNPLAYED THE SIGNIFICANCE OF THAT NUMBER AMONG THE ECONOMICALLY SENSITIVE ISSUES THAT LEAD THE INDUSTRIAL AVERAGE GENERAL MOTORS ROSE 7/8 TO 47 5/8 MINNESOTA MINING & MANUFACTURING GAINED 5/8 TO 109 7/8 INTERNATIONAL PAPER INCREASED 7/8 TO 65 1/2 AND BOEING CLIMBED 7/8 TO 38 5/8 AN EASE IN MARKET INTEREST RATES AFTER SEVERAL DAYS OF CREEPING GAINS LATE LAST WEEK ALSO AIDED THE STOCK MARKET LOW INTEREST RATES REMAIN ONE OF THE MOST IMPORTANT PROPS BENEATH EQUITY PRICES TRADERS MEANWHILE TIED SOME OF THE EARLY STRENGTH TO UPBEAT COMMENTS FROM LEHMAN BROTHERS ANALYST ELAINE M GARZARELLI THE LONGTIME BULL SAID HER MARKET INDICATORS HAVE BECAME EVEN MORE POSITIVE SHE SAID THE DOW JONES INDUSTRIALS WOULD BE FAIRLY VALUED THIS YEAR AT JUST ABOVE THE 4000 MARK AND PREDICTED THAT A BEAR MARKET MAY BE AT LEAST A YEAR AWAY ANALYSTS SAID YESTERDAY'S RECORD WAS MORE CONVINCING THAN LAST WEEK'S ADVANCE TO HIGHS BROADER INDEXES LOST GROUND THEN AND DECLINING BIG BOARD ISSUES LED ADVANCERS NARROWBASED STRENGTH RAISES QUESTIONS ABOUT A RALLY'S SUSTAINABILITY YESTERDAY THERE WERE 1214 ADVANCERS AND 776 DECLINERS BUT JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID HE WOULDN'T BE SURPRISED TO SEE MORE BUYING INTEREST AFTER YESTERDAY'S RALLY I WOULD BE SURPRISED IF WE HAD A 10 RUNUP IN THE NEXT COUPLE OF MONTHS BUT I THINK THE PATH OF LEAST RESISTANCE CONTINUES TO BE TOWARD THE UPSIDE HE SAID BOEING GAINED AFTER THE SEATTLE AIRCRAFT COMPANY REPORTED SECONDQUARTER NET INCOME OF 125 A SHARE DOWN FROM 127 A YEAR EARLIER BUT ABOVE THE 105 MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM MEDUSA INCREASED 2 3/8 TO 28 7/8 AFTER THE CLEVELAND HEIGHTS OHIO CEMENT PRODUCER REPORTED A SECONDQUARTER PROFIT OF 57 CENTS A SHARE UP FROM 39 CENTS A YEAR EARLIER IT PREDICTED STRONG IMPROVEMENT IN YEARTOYEAR OPERATING RESULTS IN THE THIRD AND FOURTH QUARTERS BUT EARNINGS NEWS WASN'T KIND TO CUMMINS ENGINE IT TUMBLED 6 1/2 TO 82 1/2 AFTER THE COLUMBUS IND DIESEL ENGINE MANUFACTURER POSTED LOWERTHANEXPECTED SECONDQUARTER EARNINGS OF 265 A SHARE ANALYSTS SURVEYED BY IBES HAD EXPECTED A PROFIT OF ABOUT 268 A YEAR AGO THE COMPANY HAD NET INCOME OF 1 A SHARE CALIFORNIA FEDERAL BANK SKIDDED 1 1/2 TO 11 AFTER THE LOS ANGELES THRIFT POSTED A LOSS OF 183 A SHARE FOR THE SECOND QUARTER A YEAR AGO IT HAD A DEFICIT OF 452 A SHARE SEPARATELY ITS CHAIRMAN JERRY ST DENNIS RESIGNED DIRECTOR MICHAEL ARTHUR WAS NAMED INTERIM CHAIRMAN WHILE A SUCCESSOR IS SOUGHT PHILLIPS PETROLEUM ROSE 1 3/8 TO 30 THE BARTLESVILLE OKLA CONCERN REPORTED NET INCOME OF 46 CENTS A SHARE FOR THE SECOND QUARTER UP FROM 38 CENTS A YEAR AGO THE COMPANY IN PART CITED GAINS IN US NATURAL GAS PRICES IN ACTIVE TRADING INTERNATIONAL BUSINESS MACHINES FINISHED WITH A GAIN OF 1/8 TO 42 3/8 AFTER SPENDING MUCH OF THE SESSION LOWER THE STOCK DRIFTED FOR TWO WEEKS AHEAD OF TODAY'S PLANNED RELEASE OF SECONDQUARTER RESULTS AMERICAN DEPOSITARY RECEIPTS OF SHANGHAI PETROCHEMICAL CLOSED UNCHANGED AT 20 1/2 ON VOLUME OF 45 MILLION THE CHINESE COMPANY WAS THE SUBJECT OF A RECENT INITIAL OFFERING OF 168 MILLION ADRS PRICED AT 2039 EACH BROWNINGFERRIS SLUMPED 1 3/8 TO 24 5/8 KIDDER PEABODY & CO CUT ITS RATING ON THE HOUSTON ENVIRONMENTAL SERVICES CONCERN TO OUTPERFORMER FROM STRONG BUY THE STOCK FELL 1 1/4 FRIDAY AFTER THE COMPANY REPORTED LOWER THIRDQUARTER EARNINGS INCLUDING A RESTRUCTURING CHARGE STONE CONTAINER DROPPED 3/8 TO 8 5/8 IT REPORTED A SECONDQUARTER LOSS OF 103 A SHARE COMPARED WITH A YEARAGO DEFICIT OF 60 CENTS IT WON'T PAY A QUARTERLY DIVIDEND ON ITS SERIES E PREFERRED STOCK THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 171 OR 040 TO 43376 THERE WERE 303 GAINERS AND 257 DECLINERS 9307270080 930727 FINANCIAL CONSULTANT IS CHARGED REGARDING NOT PAYING BROKERS NEW YORK THE SECURITIES AND EXCHANGE COMMISSION ALLEGED THAT A BOSTON FINANCIAL CONSULTANT MAY HAVE CAUSED OVER 21 MILLION IN LOSSES TO SEVERAL SECURITIES DEALERS BY BUYING SHARES IN A DENVER COMPANY WITHOUT INTENDING TO PAY FOR THE TRADES THE SEC SAID IT OBTAINED A PRELIMINARY INJUNCTION IN FEDERAL COURT IN MANHATTAN AGAINST HOWARD R BAER ENJOINING HIM FROM FURTHER VIOLATIONS OF SECURITIES LAWS FREEZING HIS ASSETS AND CALLING FOR AN ACCOUNTING THE SEC COMPLAINT ALLEGES MR BAER PLACED TRADES IN JUNE FOR THOUSANDS OF COMMON SHARES OF KFUEL INC AN ALTERNATIVEFUEL COMPANY WHOSE STOCK TRADES OVER THE COUNTER THE SEC SAID MR BAER HELD ACCOUNTS WITH 11 DEALERS BUT DIDN'T INTEND TO PAY FOR THE TRADES HE ORDERED THE 11 DEALERS INCLUDE GENERAL ELECTRIC CO'S KIDDER PEABODY & CO UNIT AND PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES INC UNIT MR BAER'S ATTORNEY THOMAS G SHAPIRO TOLD THE DOW JONES NEWS SERVICE THAT HIS CLIENT CONSENTED TO THE INJUNCTION BUT DENIES ENGAGING IN ANY FRAUDULENT SCHEMES MR SHAPIRO SAID MR BAER HAS NOT PAID FOR THE TRADES DUE TO UNANTICIPATED DEVELOPMENTS AND PLANS TO PAY FOR THE STOCK PURCHASES AN SEC SPOKESMAN SAID IT SEEKS A PERMANENT INJUNCTION AGAINST MR BAER AND CIVIL PENALTIES THE TOTAL OF WHICH WILL BE DETERMINED AT A LATER DATE THE DATE FOR THE HEARING FOR THE PERMANENT INJUNCTION HAS NOT YET BEEN SCHEDULED 9307270079 930727 BUSINESS BRIEF TWO MEMBERS OF REICHMANN FAMILY PLAN TO PURCHASE OLYMPIA & YORK UNIT TORONTO TWO JUNIOR MEMBERS OF THE ONCE POWERFUL REICHMANN FAMILY SAID THEY AGREED TO BUY OLYMPIA & YORK DEVELOPMENTS LTD'S CANADIAN PROPERTY MANAGEMENT AND LEASING SUBSIDIARY IN A FURTHER SIGN THAT THE TORONTO FAMILY IS DIGGING OUT FROM UNDER THE RUBBLE OF ITS FAILED REALESTATE EMPIRE PHILIP REICHMANN SON OF ALBERT REICHMANN AND FRANK HAUER SONINLAW OF PAUL REICHMANN SAID THEY AGREED TO PURCHASE O&Y DEVELOPMENTS' 90 STAKE IN THE SUBSIDIARY O&Y PROPERTIES INC FOR AN UNDISCLOSED AMOUNT OF CASH ALBERT PAUL AND A THIRD BROTHER RALPH WERE FORCED TO RELINQUISH CONTROL OF O&Y DEVELOPMENTS AFTER IT EMERGED FROM CANADIAN BANKRUPTCY COURT PROTECTION IN MARCH O&Y DEVELOPMENTS NOW IS BEING RUN BY A COURTAPPOINTED ADMINISTRATOR ON BEHALF OF THE COMPANY'S CREDITORS O&Y PROPERTIES WAS CREATED AS PART OF THE CANADIAN DEBT REORGANIZATION TO MANAGE THE PARENT COMPANY'S 10 OFFICE TOWERS IN CANADA THE REICHMANN FAMILY RETAINED A 10 OWNERSHIP OF O&Y PROPERTIES PHILIP REICHMANN 35 YEARS OLD AND FRANK HAUER 34 HAVE FOR SEVERAL YEARS LOOKED AFTER THE MANAGEMENT AND LEASING FUNCTIONS OF THE ELDER REICHMANNS' CANADIAN PROPERTY HOLDINGS AFTER ACQUIRING THE BALANCE OF O&Y PROPERTIES PHILIP REICHMANN WILL SERVE AS THE COMPANY'S NEW PRESIDENT AND MR HAUER WILL BE EXECUTIVE VICE PRESIDENT NONE OF THE SENIOR REICHMANNS WILL PLAY A ROLE IN THE COMPANY AN O&Y PROPERTIES SPOKESMAN SAID THE TRANSACTION IS EXPECTED TO CLOSE NEXT MONTH O&Y PROPERTIES WHICH HAS 340 EMPLOYEES SAID IT PLANS EVENTUALLY TO SEEK CONTRACTS TO MANAGE BUILDINGS OTHER THAN THOSE OWNED BY O&Y DEVELOPMENTS THE SENIOR REICHMANNS ALSO HAVE BEEN DEVELOPING NEW LINES OF WORK RECENTLY PAUL REICHMANN THE MAIN INFLUENCE BEHIND O&Y DEVELOPMENTS' PAST SPECTACULAR SUCCESSES AND EQUALLY STUNNING COLLAPSE FORGED A REALESTATE INVESTMENT ALLIANCE WITH NEW YORK MONEY MANAGER GEORGE SOROS PAUL AND ALBERT REICHMANN ALSO ARE UNDERSTOOD TO BE CONSIDERING DEVELOPMENT PROJECTS IN MEXICO CITY THE THIRD BROTHER RALPH REICHMANN RUNS THE FAMILY'S DECORATIVE TILE BUSINESS IN TORONTO MEANWHILE AN ONTARIO BANKRUPTCY COURT JUDGE APPROVED A NEW BOARD FOR O&Y DEVELOPMENTS' US SUBSIDIARY WHICH IS THE LAST STEP NEEDED BEFORE THE NEW DIRECTORS CAN TAKE CONTROL OF THE UNIT OLYMPIA & YORK COS USA A US BANKRUPTCY COURT EARLIER THIS MONTH ALSO APPROVED THE NEW BOARD FOR THE UNIT WHICH IS ATTEMPTING TO RESTRUCTURE 53 BILLION OF DEBT 9307270078 930727 SHORT INTEREST HIGHLIGHTS NASDAQ ISSUES THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE MONTH 9307270077 930727 VARIANTS OF CONVERTIBLE PREFERRED STOCK CAN LEAVE INVESTORS WITH A BAD TASTE BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS ARE DEVELOPING AN ENORMOUS APPETITE FOR CONVERTIBLE PREFERRED STOCK BUT A FEW EXOTIC TYPES ARE SPRINGING UP THAT COULD GIVE HOLDERS A BELLYACHE THAT'S BECAUSE CORPORATE TREASURERS ARE PERSUADING INVESTORS TO BEAR GREATER RISKS THAN USUAL IN THESE HYBRID INVESTMENTS WHICH HAVE PRIORITY IN RECEIVING DIVIDENDS AND CAN BE CONVERTED BY THE HOLDER INTO COMMON STOCK MONEY IS POURING INTO CONVERTIBLESECURITIES MUTUAL FUNDS AT A RECORD PACE AND THAT IS CREATING A SUPPLYDEMAND IMBALANCE IN FAVOR OF THE ISSUER SAYS GARY WEINSTEIN A LEHMAN BROTHERS MANAGING DIRECTOR WHO HEADS THE GLOBAL CONVERTIBLES DESK SO NOW ISSUERS ARE ABLE TO GET AWAY WITH THINGS FROM NEW STRUCTURES TO UNUSUAL TERMS THAT IN THE PAST THEY WEREN'T ABLE TO DO FOR EXAMPLE IN SOME CASES INVESTORS MIGHT BE FORCED TO CONVERT THEIR PREFERRED STOCK INTO COMMON SHARES AT A LOSS SOMETHING THAT NEVER HAPPENED WITH OLDFASHIONED CONVERTIBLES PREFERRED STOCK IS GAINING GROUND COMMANDING ABOUT 45 OF THE WHOLE CONVERTIBLES MARKET TODAY COMPARED WITH 25 A FEW YEARS BACK AND THAT MAKES CORPORATE TREASURERS HAPPY FROM THE TREASURERS' POINT OF VIEW WHY ISSUE BONDS WHEN A MISSED PAYMENT COULD LAND YOU IN BANKRUPTCY COURT ESPECIALLY IF INVESTORS ARE WILLING TO SETTLE FOR LESS PREFERRED STOCK HELPS THE ISSUING COMPANY CLEAN UP ITS BALANCE SHEET MANY ISSUERS ARE MIDSIZE COMPANIES THAT WOULD REALLY PREFER TO SELL GARDENVARIETY COMMON STOCK BUT WOULD HAVE A TOUGH TIME FETCHING A DECENT PRICE ENTER WALL STREET WITH VARIOUS ARCANE PREFERRED STOCKS CRAFTED TO LOOK MORE LIKE COMMON STOCK THAN DEBT TO THE CREDITRATING SERVICES THE IDEA IS TO IMPROVE THE WIDELY WATCHED BENCHMARK KNOWN AS THE DEBTTOEQUITY RATIO SO THE COMPANY CAN GET A CREDITRATING UPGRADE AND HOLD DOWN BORROWING COSTS INVESTORS ARE GROUSING AT SEVERAL RECENT ISSUES WITH INVESTORUNFRIENDLY TERMS BUT DEMAND FOR CONVERTIBLES IS SO STRONG LATELY THAT INVESTORS CAN'T BE TOO CHOOSY CONVERTIBLES ARE HOT PERFORMERS THANKS TO DECLINING INTEREST RATES AND A BOOMING STOCK MARKET FOR THE FIRST HALF CONVERTIBLES OF ALL TYPES HAD TOTAL RETURNS OF 1265 COMPARED WITH THE STOCK MARKET'S 49 AS MEASURED BY THE STANDARD & POOR'S 500 ACCORDING TO SMITH BARNEY HARRIS UPHAM & CO TOTAL RETURNS INCLUDE BOTH SECURITIES PRICE CHANGES AND INCOME THERE'S FEVERISH ACTIVITY AFOOT AT INVESTMENT BANKING HOUSES TO CREATE MORE CONVERTIBLES THAT ARE TREATED AS EQUITY NOT DEBT SAYS SOLOMON SAMSON A MANAGING DIRECTOR WHO IS CHAIRMAN OF STANDARD & POOR'S CORP'S RATING COMMITTEE HE HAS REVIEWED 10 TO 15 PERMUTATIONS DURING THE PAST SEVERAL MONTHS MANY NOW BEING PITCHED TO CORPORATIONS NORMALLY WITH CONVERTIBLES INVESTORS OBTAIN A RIGHT TO CONVERT INTO COMMON STOCK AT A PRESET PRICE FOR EXAMPLE THEY MIGHT HAVE THE RIGHT TO GET ONE COMMON SHARE FOR EACH 25 OF PREFERRED IF THE COMMON STOCK SOARS ABOVE THE PRESET PRICE THE CONVERTIBLES HOLDER IS A WINNER ALSO CONVERTIBLES PAY A FIXED INCOME AS MUCH AS 65 FOR LOWERRATED PREFERRED STOCK THE YIELD IS TYPICALLY ABOUT TWO PERCENTAGE POINTS LESS THAN WHAT COMPARABLE NONCONVERTIBLE DEBT WOULD PAY IT'S A GAP INVESTORS ACCEPT IN EXCHANGE FOR THE EQUITY KICKER BUT TROUBLE ARISES WHEN THE COMMON STOCK FALLS RATHER THAN RISES IN PRICE LEAVING THE CONVERTIBLE HUNG COMPANIES SOMETIMES HAVE THE RIGHT TO CALL THE SECURITIES AWAY FROM INVESTORS BUT WHEN THE COMMON IS DEPRESSED AND THE CONVERTIBLE HUNG HOLDERS OFTEN CAN DEMAND TO BE PAID THE CALL PRICE IN CASH IT IS THE POSSIBILITY OF A HUNG CONVERTIBLE WITH ITS FIXED ANNUAL INTEREST PAYMENTS THAT CAUSES RATING SERVICES TO CONSIDER TRADITIONAL CONVERTIBLES MORE DEBTLIKE THAN EQUITYLIKE TO UNDERSTAND HOW INVESTORS COULD BE LEFT FEELING ILL WITH A NEWSTYLE CONVERTIBLE PREFERRED STOCK CONSIDER MASCOTECH INC'S SOCALLED DIVIDEND ENHANCED CONVERTIBLE SECURITY EACH SHARECALLED A DECS BY DESIGNER SALOMON BROTHERS INC A SALOMON INC UNITSOLD FOR 20 THE APPROXIMATE PRICE OF MASCOTECH'S COMMON STOCK AT THE TIME OF THE LATE JUNE ISSUE THE DECS ISSUE WHICH YIELDS 6 IS NONCALLABLE FOR THREE YEARS AND THIS IS ONE ISSUE THAT WON'T GET HUNG THAT'S BECAUSE ON THE FOURTH ANNIVERSARY EACH DECS AUTOMATICALLY CONVERTS INTO ONE COMMON SHARERAISING THE POSSIBILITY OF A LOSS FOR INVESTORS THE COMPANY'S COMMON STOCK WHICH PAYS A 04 DIVIDEND YIELD CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AT 20625 UP 625 CENTS EYE ON DEBT RATING MASCOTECH FORMERLY KNOWN AS MASCO INDUSTRIES INC HAD CONSIDERED SELLING COMMON SHARES THE DEBTLADEN COMPANY WANTED TO IMPROVE ITS IMPLIED SENIOR DEBT RATING OF DOUBLEBMINUS FROM S&P BUT MASCOTECH'S FINANCE TEAM CONCLUDED THAT COMMON STOCK WOULD FETCH 17 A SHARE AT MOST SAYS MASCOTECH BOARD MEMBER JOHN A MORGAN OF MORGAN LEWIS GITHENS & AHN A FINANCIAL ADVISORY FIRM A NUMBER OF INSTITUTIONS SAID THEY WOULD RATHER HAVE A PLAINVANILLA CONVERTIBLE PREFERRED BUT THAT WOULDN'T HAVE MET THE OBJECTIVES OF OUR COMPANY SAYS RICHARD MANOOGIAN MASCOTECH'S CHAIRMAN S&P'S MR SAMSON AND HIS COUNTERPART AT MOODY'S INVESTORS SERVICE AGREE THAT THEY TREAT MASCOTECH'S DECS ISSUE MORE LIKE EQUITY WHEN RATING THE COMPANY FROM A COMPANY'S PERSPECTIVE DECS IS A CLEVER CREATION SAYS CARLOS GONZALEZ PORTFOLIO MANAGER FOR DESAI CAPITAL MANAGEMENT ALTHOUGH THE BEST THING HE CAN SAY FOR IT FROM AN INVESTOR'S VIEWPOINT IS THAT IT'S NOT A HORRIBLE SECURITY ANOTHER DECSDISLIKER IS RICHARD HOEY CHIEF ECONOMIST FOR DREYFUS CORP WHO HEADS ITS GROWTH AND INCOME FUND DECS IS AN INSTRUMENT THAT DOESN'T MEET ANY NATURAL DEMAND HE SAYS OFFERING'S SIZE DOUBLED THOMAS REVY A MANAGING DIRECTOR OF FROLEY REVY INVESTMENT CO BOUGHT 3 MILLION OF DECS IF I HAD MY DRUTHERS HE SAYS HE WOULD HAVE A REGULAR CONVERTIBLE BUT THEY DIDN'T OFFER THAT AND I WANT TO OWN MASCO BECAUSE HE THINKS MASCOTECH'S COMMON STOCK WILL GROW IN VALUE GROUSING ASIDE THERE WERE ENOUGH ORDERS TO DOUBLE MASCOTECH'S OFFERING FROM ITS INITIAL 100 MILLION SIZE THIS ISN'T THE FIRST TIME WALL STREET HAS TINKERED WITH THE CONVERTIBLE IN FACT SALOMON'S DECS IS A VARIATION OF THE PERCS OR PREFERENCE EQUITY REDEMPTION CUMULATIVE STOCK A HOT PRODUCT FOR CREATOR MORGAN STANLEY & CO IN 1991 PERCS BUYERS ALSO CAN BE FORCED TO CONVERT INTO COMMON SHARES BUT A PERCS UNLIKE A DECS LIMITS THE AMOUNT OF PRICE GAIN THAT INVESTORS GET FROM THE COMMON STOCK PARTLY BECAUSE OF THE UPSIDE CAP PERCS HAVE LOST THEIR ORIGINAL SIZZLE BULGING CONVERTIBLESECURITIES MUTUAL FUNDS MAKE IT EASIER FOR NEWFANGLED CONVERTIBLES TO FIND A HOME FIDELITY INVESTMENTS' CONVERTIBLES FUND FOR EXAMPLE HAS MORE THAN 856 MILLION IN ASSETS UP 78 FROM YEAR'S END AND IT ISN'T JUST CONVERTIBLEFUND MANAGERS BUYING CONVERTIBLES THESE DAYS MANAGERS OF EQUITY INCOME FUNDS ARE IN THERE TOO LOOKING FOR ALTERNATIVES TO THE PALTRY PAYOUTS AVAILABLE ON COMMON STOCK CONVERTIBLE OFFERINGS ARE EXPECTED TO HIT A RECORD THIS YEAR BUT COMPANIES ARE REDEEMING EXISTING CONVERTIBLES AS FAST AS THEY CAN THE SUPPLY SIDE HASN'T GROWN WHILE DEMAND HAS SAYS MARK HUNT SMITH BARNEY'S DIRECTOR OF CONVERTIBLES RESEARCH IT DOESN'T MEAN COMPANIES ARE ABLE TO PRICE CHEAPLY BUT THEY ARE ABLE TO STRUCTURE A DEAL THE WAY THEY WANT IT TAKE BATTLE MOUNTAIN GOLD CO ITS RECENT 100 MILLION OF NOCASHREDEMPTION PREFERRED STOCK YIELDING 65 WAS HEAVILY OVERSUBSCRIBED THERE'S MORE MONEY CHASING FEWER PRODUCTS PHILLIPS BAKER BATTLE MOUNTAIN'S TREASURER SAYS IT WAS A GOOD DEAL FOR US 9307270076 930727 SAKS REFINANCES 13 DEBT NEW YORK TAKING ADVANTAGE OF LOWER INTEREST RATES SAKS FIFTH AVENUE SAID IT REFINANCED THE REMAINING 150 MILLION OF ITS 13 SUBORDINATED DEBT WITH LOWERCOST SENIOR BANK DEBT THE NEW YORK RETAILER SAID THAT THE REFINANCING WILL RESULT IN A SAVINGS OF 10 MILLION TO 13 MILLION IN ANNUAL INTEREST PAYMENTS INVESTCORP A BAHRAINBASED INVESTMENT BANK WHICH IN 1990 LED A 16 BILLION BUYOUT OF SAKS FIFTH AVENUE HAD ORIGINALLY PROVIDED ABOUT 325 MILLION IN SUBORDINATED DEBT TO SAKS ALL OF WHICH NOW HAS BEEN REFINANCED THROUGH CHEMICAL BANK BANKERS TRUST CO AND CIT GROUP IN 1992 SAKS HAD SALES OF ABOUT 13 BILLION 9307270075 930727 DEMOCRATS SHOULD KEEP THEIR PROMISES BY L DOUGLAS WILDER FOR SIX MONTHS NOW THE MOST LOYAL DEMOCRATS IN AMERICA HAVE WATCHED AND WAITED FEARFUL THAT THEIR PARTY HAS RETREATED OR RENEGED ON KEY 1992 CAMPAIGN PROMISES EVIDENTLY WASHINGTON BELIEVES THAT AMERICANS STRUGGLING UP THE LADDER OF SUCCESS ESPECIALLY THOSE WHO ONLY WANT A CHANCE TO GRASP THE BOTTOM RUNG CAN LIVE ON LOFTY RHETORIC NOT SO FOR ONLY IN WASHINGTON CAN PEOPLE EAT THEIR WORDS AND STILL GROW IN STATURE THE SMALL BUSINESS OWNER THE SENIOR CITIZEN THE POOR CHILD WHO WANTS TO LEARN OR THE WORKER WORRIED ABOUT HER JOB AND FAMILY BUDGET MUST SURVIVE IN THE REAL WORLD WASHINGTON HAD PROMISED TO HELP EACH OF THEM BUT NOW SEEMS TO BE BACKING AWAY FOR 12 YEARS THE DEMOCRATS RIPPED THE REPUBLICANS FOR APPEALING TO THE MIDDLE CLASS BY THE USE OF CODEWORD POLITICS DEMOCRATS SAID IT MIGHT BE THE WAY TO WIN ELECTIONS BUT IT WAS HURTING THE COUNTRY SUDDENLY CODEWORD POLITICS ADMITTEDLY MORE ARTFULLY DONE APPEAR TO BE BACK IN VOGUE IN WASHINGTON ONCE AGAIN THE POOR ESPECIALLY THOSE WHO LIVE IN OUR URBAN AND SUBURBAN AREAS HAVE BECOME THE DARTBOARD OF AMERICAN POLITICS BUT THIS TIME IT APPEARS THE DEMOCRATS ARE THE ONES SENDING THE DIVISIVE MESSAGE AS SOMEONE WHO WAS BORN THE GRANDSON OF SLAVES I HAVE BEEN FORCED TO LEARN FIRSTHAND HOW OTHERWISE GOOD MEN AND WOMEN WILL RENEGE ON THEIR PROMISES EVEN ON THEIR PROFESSED PRINCIPLES IN ORDER TO RETAIN POLITICAL OFFICE WHEN I WAS GROWING UP SOUTHERN POLITICS WAS BASED ON ONE BASIC PREMISE THE MYTH THAT THE ONLY WAY TO GIVE AFRICANAMERICANS MORE OPPORTUNITIES WAS TO TAKE AWAY SIMILAR OPPORTUNITIES FROM WHITE SOUTHERNERS THUS ANYONE WHO SUPPORTED EFFORTS TO IMPROVE THE LIVES OF BLACK SOUTHERNERS WAS LABELED AS ANTIWHITE BECAUSE OF THE POWER OF THIS LIE DECENT PEOPLE WERE AFRAID TO SPEAK THE TRUTH EVEN AFTER THE SUPREME COURT OUTLAWED SEGREGATION STATE LAW PROHIBITED ME FROM ATTENDING A LAW SCHOOL IN MY NATIVE VIRGINIA EVEN THOUGH I HAD SERVED MY COUNTRY IN THE KOREAN WAR STATE LAWS MADE IT IMPOSSIBLE FOR ME TO BE TREATED WITH THE SAME DIGNITY OFFERED TO OTHER VETERANS THE RESULT WAS NOT JUST TO KEEP MINORITIES DOWN IT ALSO KEPT THE SOUTH AND THE COUNTRY DOWN WHEN SEGREGATION WAS FINALLY AND FULLY OUTLAWED IN THE 1960S THE SOUTH STARTED ITS GREATEST PERIOD OF ECONOMIC GROWTH SINCE THEN MORE SOUTHERNERS THAN EVER BEFORE HAVE BEEN ABLE TO WORK THEIR WAY INTO THE MIDDLE CLASS AND HIGHER THAN EVER BEFORE THE BOTTOM LINE IS CLEAR BRINGING PEOPLE TOGETHER IS GOOD FOR THE ECONOMY IT MEANS JOBS IT MEANS WORK IT MEANS A CHANCE FOR THE GOOD LIFE A DECENT JOB AT A DECENT WAGE WITH AN OPPORTUNITY FOR ADVANCEMENT IS THE BEST SOCIAL EQUALIZER WHEN THE POOR AND THOSE LONG DENIED ARE GIVEN A REAL CHANCE AT REAL JOBS THE MEMBERS OF THE MIDDLE CLASS ARE AMONG THE BIGGEST BENEFICIARIES WHY ONE BECAUSE THEY OWN THE BUSINESSES THAT SERVE OUR STRUGGLING AREAS TWO BECAUSE THE COST OF WELFARE CRIME TEENAGE PREGNANCY AND ALL OUR OTHER SOCIAL PROBLEMS ARE REDUCED AND THREE BECAUSE IT WILL REDUCE THE FEARFUL ENVIRONMENT THAT IS GROWING AROUND US MAKING US AFRAID TO GO OUT AT NIGHT AND PULLING US APART AT THE VERY MOMENT AMERICA NEEDS TO BE WORKING TOGETHER TO WIN THE NEW INTERNATIONAL ECONOMIC WAR BUT TODAY WITH SHOCKING SPEED CALLS FOR A MIDDLECLASS TAX CUT TURN INTO BROAD TAX INCREASES CONCRETE PROMISES OF FULL FUNDING FOR HEAD START BECOME LONGRANGE GOALS PLEDGES OF SUPPORT FOR BUSINESSES TO RELOCATE IN INNER CITIES EVAPORATE AND HEALTHCARE REFORM PLANS ARE PUT ASIDE WHILE TAXES ARE BROADLY RAISED ON MEDICARE THE ELDERLY'S ONLY RELIABLE MEDICAL INSURANCE PROGRAM AS WELL AS ON SOCIAL SECURITY AS PRESIDENT CLINTON HIMSELF ADMITTED DURING THE CAMPAIGN STATES CAN ONLY DO SO MUCH ALONE HE SAID WASHINGTON HAD TO ACT THAT MEANS WASHINGTON HAS TO HAVE THE COURAGE TO TELL THE PEOPLE THE TRUTH DEMOCRATS SHOULD NOT NEED TO OUTCODEWORD THE REPUBLICANS INSTEAD THEY SHOULD KEEP THEIR PROMISES FROM THE 1992 CAMPAIGN FOR OPENERS I PROPOSE THE FOLLOWING FIRST CONGRESS SHOULD REJECT THE USE OF A GASOLINE TAX TO LOWER THE DEFICIT GASOLINE TAXES ARE LEVIED TO BUILD NEW AND MAINTAIN OLD HIGHWAYS ON THOSE WHO USE THEM THE THEORY BEHIND THEM IS SIMPLE IF YOU USE THE ROADS THEN YOU SHOULD BE WILLING TO PAY FOR THEM IT IS WRONG FOR CONGRESS TO USE THIS REGRESSIVE TAX TO MAKE THE POOR AND MIDDLE CLASS PAY FOR WASHINGTON'S OVERSPENDING FURTHERMORE THIS ADDED FEDERAL TAX DEPRIVES THE STATES OF A FUNDING SOURCE TO MEET THEIR OWN HIGHWAY NEEDS SECOND CONGRESS SHOULD DEVELOP A REAL URBAN POLICY OR WATCH NOT JUST OUR CITIES BUT OUR SUBURBAN AREAS SUFFER PROGRESS WILL REQUIRE REAL RESOURCES AND THAT MEANS GIVING PRIVATE CAPITAL A REAL INCENTIVE TO REVITALIZE THESE AREAS ONE NEW APPROACH WOULD BE TO PASS A VERSION OF THE SMALL BUSINESS TAX FREE ZONE IDEA FIRST PROPOSED BY A FORMER CHAIRMAN OF THE VIRGINIA DEMOCRATIC PARTY TAXES ARE A CURRENT COST OF DOING BUSINESS IF WE ARE GOING TO GET JOBS INTO OUR POOREST AREAS WE NEED TO ENABLE BUSINESSES TO BECOME REALLY PROFITABLE REALLY FAST THIRD CONGRESS SHOULD FULLY FUND HEAD START RIGHT NOW DESPITE HAVING PROMISED FULL FUNDING DURING THE 1992 CAMPAIGN THE PRESIDENT NOW SAYS IT MAY OCCUR IN A SECOND TERM BY THEN WE MAY HAVE ALREADY LOST ANOTHER GENERATION OF POOR KIDS ON ALL THESE MATTERS ESPECIALLY AT THIS CRITICAL MOMENT WHEN THE BUDGET IS UNDER DEBATE IT IS TIME TO SPEAK OUT SILENCE IS NOT GOLDEN AS THE SAYING GOES THOSE WHO ACT LIKE SHEEP SHOULD EXPECT TO GET SHEARED MR WILDER A DEMOCRAT IS GOVERNOR OF VIRGINIA 9307270074 930727 WHO'S NEWS DUN & BRADSTREET CORP SHIFTS ITS LEADERSHIP OKUN HEADS MARKETING NEW YORK DUN & BRADSTREET CORP NAMED AN EXECUTIVE TO HEAD ITS 19 BILLION MARKETING INFORMATION SERVICES BUSINESS AND ANNOUNCED SEVERAL OTHER EXECUTIVE CHANGES SERGE OKUN 47 YEARS OLD A SENIOR VICE PRESIDENT WAS NAMED AN EXECUTIVE VICE PRESIDENT AND WILL HAVE OVERALL RESPONSIBILITY FOR THE MARKETING INFORMATION SEGMENT ONE OF FOUR EXECUTIVE VICE PRESIDENTS MR OKUN WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OF IMS INTERNATIONAL AND WAS NAMED AC NIELSEN PRESIDENT AND CHIEF EXECUTIVE A NEWLY CREATED POSITION THE FOLLOWING WERE NAMED SENIOR VICE PRESIDENTS WILLIAM G JACOBI 49 FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF NIELSEN MEDIA RESEARCH WHO WILL BE RESPONSIBLE FOR NCH PROMOTIONAL SERVICES DUN & BRADSTREET PLAN SERVICES ERISCO AND SALES TECHNOLOGIES ROBERT J LIEVENSE 47 WHO HAD BEEN CHAIRMAN OF DATAQUEST AND PRESIDENT OF NCH PROMOTIONAL SERVICES AND WILL BE CHAIRMAN OF THE REUBEN H DONNELLEY DIRECTORY INFORMATION SERVICES UNIT SUCCEEDING JAMES K MURRAY JR 58 WHO IS RETIRING AND DENNIS G SISCO 46 WHO WILL BE RESPONSIBLE FOR DATAQUEST AND GARTNER GROUP INC AND WILL HEAD ACQUISITION AND VENTURE ACTIVITIES HE CONTINUES AS PRESIDENT OF D&B ENTERPRISES WHICH INVESTS IN EMERGING BUSINESSES IN THE INFORMATION INDUSTRY JOHN C HOLT 52 WHO CONTINUES AS AC NIELSEN CHAIRMAN WAS NAMED EXECUTIVE VICE PRESIDENT GLOBAL RESOURCES 9307270072 930727 WHO'S NEWS MARSHALL & ILSLEY CORP MARSHALL & ILSLEY CORP MILWAUKEE THIS MULTIBANK HOLDING COMPANY ANNOUNCED THE ELECTIONS OF MORRY L BIRNBAUM AS PRESIDENT OF ITS MARSHALL & ILSLEY TRUST CO UNIT AND OF DAVID W SCHULZ AS PRESIDENT OF ITS M&I INVESTMENT MANAGEMENT CORP UNIT MR BIRNBAUM 45 YEARS OLD HAD BEEN DIVISION HEAD OF CORPORATE TRUST SERVICES MR SCHULZ 35 WAS DIRECTOR OF FIXED INCOME 9307270071 930727 TRADEOFF PADRES SLOUGH OFF PLAYERS UPSET ZACH NELSON YOUNG FAN DOESN'T QUITE GET THE BASEBALL ECONOMICS THEY PRACTICE IN SAN DIEGO BY TIMOTHY K SMITH STAFF REPORTER OF THE WALL STREET JOURNAL PADRE OWNERS I AM VERY UPSET BECAUSE YOU HAD THE NERVE TO TRADE GARY SHEFFIELD FOR A VERY BAD PLAYER YOU GUYS ARE STUPID I SHOULD KNOW I'M 11 AND I'M SMARTER THAN YOU THAT LETTER PUBLISHED ON THE FOURTH OF JULY IN THE SAN DIEGO UNION AND TRIBUNE WAS WRITTEN TO THE OWNERS OF THIS CITY'S BASEBALL TEAM BY A YOUNG MAN OF FIRM CONVICTIONS ZACH NELSON THINKS THE BUSINESSMEN IN CHARGE OF THE PADRES ARE BEHAVING LIKE CHOWDERHEADS IN THAT ZACH SEEMS TO SPEAK FOR HIS COMMUNITY THE PADRES OWNERS LED BY TELEVISION PRODUCER TOM WERNER HAVE BEEN TRADING AWAY THEIR FINEST PLAYERS TO SAVE MONEY ON SALARIES THIS YEAR THEY HAVE LOST THREE PLAYERS TO FREE AGENCY AND TRADED SEVEN MORE INCLUDING TWO PITCHERS YESTERDAY EXPLAINING THAT THE MOVES ARE NECESSARY FOR THE FUTURE HEALTH OF THE FRANCHISE THE FAMILIAR HOME TEAM IS GRADUALLY DISAPPEARING AS THE SEASON PROGRESSES IN ITS PLACE STRANGERS IN PADRES UNIFORMS ARE PLAYING BASEBALL INEPTLY WHILE THE OWNERS' STRATEGY MAY ONE DAY PROVE TO BE SOUND THEIR TACTICS HAVE LEFT SAN DIEGO'S BASEBALL FANS IN A STATE OF REBELLION SELDOM SEEN IN PROFESSIONAL SPORTS THE OWNERS WROTE A LETTER TO SEASONTICKET HOLDERS LAST SUMMER PROMISING TO PRESERVE THE CORE OF THE TEAM BUT THEN GUTTED THE ROSTER ANYWAY WHEN FANS HOISTED A BANNER AT JACK MURPHY STADIUM BEARING THE WORDS LAUGHINGSTOCK OF BASEBALL SECURITY GUARDS HAULED THEM AWAY DISSIDENTS NOW WEAR SIMPLE BROWN PAPER BAGS OVER THEIR HEADS TWO SEASONTICKET HOLDERS HAVE SUED THE TEAM FOR FRAUD AND BREACH OF CONTRACT AND ARE SEEKING TO MAKE THEIR SUIT A CLASS ACTION WHEN THE PADRES OFFERED REFUNDS MORE THAN 200 PEOPLE TURNED THEIR SEASON TICKETS IN THE TEAM HAS COME TO BE KNOWN IN HEADLINES AND ON RADIO TALK SHOWS AS THE SWAP MEET SPEAKING AS A FAN AND I THINK I CAN GIVE YOU A BIRD'SEYE VIEW THEY'RE JUST NOT AS LOVABLE AS THEY WERE SAYS TED GIANNOULAS WHO WAS THE SAN DIEGO CHICKEN UNTIL THE TEAM LAID HIM OFF AS ITS MASCOT TWO YEARS AGO IT WAS THE TRADE OF GARY SHEFFIELD AN ALLSTAR THIRD BASEMAN WHOSE SALARY THIS YEAR IS 31 MILLION THAT REALLY SET THIS CITY'S TEETH ON EDGE FOR YOUNG ZACH NELSON SUDDENLY DEPRIVED OF HIS THIRDBASE ROLE MODEL THE NEWS WAS DIRE AND WARRANTED A LETTER OF PROTEST HIS AUNT PAULA WROTE AN ANGRY LETTER TOO ZACH WHO LIVES WITH HIS MOTHER IN A SMALL APARTMENT IN A GRITTY NEIGHBORHOOD FIVE MILES EAST OF JACK MURPHY STADIUM SAYS HE HAS BEEN A FAN SINCE 1983 HIS GRANDMOTHER WHO LIVES THERE TOO HAS BEEN A PADRES FAN SINCE THE DAY THE TEAM WAS FOUNDED IN 1969 AND SHE HAS RAISED A FAMILY OF KNOWLEDGEABLE BASEBALL LOVERS ZACH'S MOTHER FOR INSTANCE IS QUITE COMFORTABLE DISCUSSING THE EFFECT A DRUG CONVICTION CAN HAVE ON THE TRADING VALUE OF A PLAYER'S BASEBALL CARD IN THIS HOUSEHOLD THERE IS A UNIFIED VIEW OF THE PADRES' PRESENT SITUATION IT IS A DAMNED SHAME AND ALMOST BUT NOT QUITE AN UNFORGIVABLE BETRAYAL OF THE FANS IT WILL BECOME UNFORGIVABLE AND NO ONE IN THE FAMILY WILL EVER GO TO A GAME AGAIN IF THE PADRES TRADE TONY GWYNN THE GENTLEMAN RIGHT FIELDER WHOM THEY REGARD AS THE LAST OF THE VETERAN HEROES TONY GWYNN HAS NEVER ASKED FOR A RAISE THE WHOLE TIME HE'S BEEN HERE SAYS ZACH'S MOTHER CINDY VALDER HIS GRANDMOTHER LAVONE DILLINGHAM SAYS IF THEY TRADE TONY GWYNN THAT'S IT IT'S ALL OVER PADRES OFFICIALS SAY THEY HAVE NO PLAN TO TRADE MR GWYNN AND THEY ARE CHAGRINED TO FIND THEMSELVES PARIAHS THEY POINT OUT THAT THE TEAM WASN'T DOING ALL THAT WELL THIS YEAR EVEN BEFORE IT BEGAN SHEDDING EXPENSIVE TALENT AND REBUILDING AFTER ALL IS A FAMILIAR PART OF BASEBALL PITTSBURGH RECENTLY LOST THREE OF ITS STARS AFTER COMING WITHIN ONE OUT OF WINNING THE PENNANT LAST YEAR AS LONG AGO AS 1920 THE BOSTON RED SOX SOLD BABE RUTH TO THE NEW YORK YANKEES SO THAT RED SOX OWNER HARRY FRAZEE COULD FINANCE A BROADWAY PRODUCTION OF NO NO NANETTE THE RED SOX HAVEN'T WON A WORLD SERIES SINCE THIS IS KNOWN AS THE CURSE OF THE BAMBINO PART OF THE PROBLEM FOR THE PADRES IS CIRCUMSTANTIAL THEIR COSTCUTTING COMES AT A TIME WHEN THE CITY OF SAN DIEGO COULD USE A LIFT JOBS ARE SCARCE GANGS ARE A PROBLEM DRUGS ARE ABUNDANT ZACH AND HIS FAMILY REFER TO THEIR NEIGHBORHOOD IN EL CAJON AS THE METH CAPITAL OF THE WORLD ALLUDING TO THE MANUFACTURE OF CRYSTAL METHEDRINE IN HIDDEN LABORATORIES THE NAVAL TRAINING CENTER HERE IS SCHEDULED TO BE CLOSED LAST WEEK THE MISS CALIFORNIA CONTEST WAS MOVED OUT OF SAN DIEGO TO FRESNO THERE IS ALSO A QUESTION OF STYLE A QUESTION THAT HAS LEFT MANY PEOPLE HERE SCRATCHING THEIR HEADS MR WERNER THE TEAM'S PRINCIPAL OWNER HAS MADE HIS FORTUNE KNOWING EXACTLY WHAT THE PUBLIC WANTS HE PRODUCED THE COSBY SHOW AND ROSEANNE TWO OF THE MOST POPULAR TELEVISION SHOWS OF ALL TIME BUT HIS ADMINISTRATION OF A BASEBALL TEAM HAS BEEN UNIQUELY ALIENATING WHEN HE ACQUIRED THE PADRES FOUR YEARS AGO ONE OF THE FIRST THINGS HE DID WAS TO HAVE ROSEANNE ARNOLD SING THE STARSPANGLED BANNER BEFORE A PADRES GAME AFTER MURDERING THE NATIONAL ANTHEM SHE GRABBED AT HER CROTCH THE PERFORMANCE WAS SO GROSS THAT IT DREW A PROTEST FROM PRESIDENT BUSH THEY COULD GET AWAY WITH REBUILDING BEFORE WHEN THE EMPHASIS WAS ON THE PADRES AS AN ENTERTAINMENT VEHICLE SAYS MR GIANNOULAS THE FORMER SAN DIEGO CHICKEN WHO NOW BILLS HIMSELF SIMPLY AS THE FAMOUS CHICKEN AND PERFORMS AT SPORTING EVENTS AROUND THE COUNTRY ON A FREERANGE BASIS EVEN WHEN THE TEAM WAS DOING TERRIBLY HE SAYS WE'D DO SOME OUTRAGEOUS STUNTS INDIANA CHICKEN AND THE BALLPARK OF DOOM THAT KIND OF THING TODAY PADRES PROMOTIONS SEEM TO HAVE A HARD TIME KEEPING UP WITH EVENTS IN THE SOUVENIR SHOP AT JACK MURPHY STADIUM BASEBALLS BEARING A PICTURE OF GARY SHEFFIELD ARE ON SALE FOR 750 MARKED DOWN FROM 999 ZACH ISN'T INTERESTED HIS COUSIN CHRIS THOUGH WHO IS NINE AND A SERIOUS COLLECTOR OF BASEBALL MEMORABILIA BUYS ONE WITH HIS SAVINGS THERE'S TONY GWYNN CHRIS HOLLERS SETTLING INTO A SEAT BEHIND HOME PLATE ZACH LOOKS OVER THE TEAM YEARBOOK A LITTLE WISTFULLY I USED TO BE A BIG GOSSAGE FAN WHEN I WAS LITTLE HE SAYS REFERRING TO THE HIRSUTE RELIEF PITCHER TRADED TO CHICAGO IN 1987 I USED TO LIKE GARVEY TOO HE POINTS TO THE WALL BEYOND THE OUTFIELD WHERE STEVE GARVEY'S JERSEY NO 6 HANGS IN RETIREMENT THIS PARTICULAR AFTERNOON THE PADRES CURRENTLY WITH THE THIRDWORST RECORD IN BASEBALL ARE PLAYING THE NEW YORK METS WHO HAVE THE WORST RECORD OF ALL IT IS BARELY 48 HOURS SINCE THE PADRES TRADED FIRSTBASEMAN FRED MCGRIFF LAST YEAR'S NATIONAL LEAGUE HOMERUN CHAMPION TO THE ATLANTA BRAVES FOR THREE MINOR LEAGUERS IN THE BOTTOM OF THE FIRST INNING WITH THE BASES LOADED AND TWO OUTS KEVIN HIGGINS COMES TO BAT FOR THE PADRES ZACH LOOKS AT HIS MOTHER HOW LONG HAVE WE HAD HIGGINS HE ASKS HE MUST BE NEW SHE SAYS HIGGINS IS CAUGHT OUT ON A FLY BALL ATTENDANCE IS A MEAGER 14381 AND PLAY IS DESULTORY A CONTEST OF WEALTHY MEN WHO KNOW THEY ARE GOING NOWHERE IN THE STANDINGS THIS YEAR A CHEER IS MUSTERED WHEN TONY GWYNN DRIVES A BASE HIT BUT SOON THE METS TAKE THE LEAD ON A BOOMING HOME RUN BY EDDIE MURRAY THAT LANDS 14 ROWS BACK IN THE RIGHTFIELD STANDS BY THE FOURTH INNING TWO SPECTATORS SITTING IN FRONT OF ZACH AND CHRIS HAVE SLIPPED PAPER BAGS OVER THEIR HEADS THE BOYS BEGIN TO FIDGET AND THEIR CONVERSATION TURNS TO CHEWING GUM IF YOU GO TO SLEEP WITH IT IN YOUR MOUTH WILL YOU WAKE UP WITH IT IN YOUR HAIR THEY GO GET AN AUTOGRAPH FROM THE NEW TEAM MASCOT A DOGLIKE CREATURE CALLED BLOOPER WHILE THEY ARE OUT OF EARSHOT ZACH'S MOTHER SIGHS THE CHICKEN WAS BETTER THE PADRES LOSE 5 TO 2 AND THE BOYS WANDER OVER TO A CONCRETE EMBANKMENT ABOVE THE PLAYERS' ENTRANCE HOPING TO SEE THE PLAYERS UP CLOSE WHEN THEY COME OUT AFTER A LONG WAIT IN THE HOT SUN TONY GWYNN STROLLS OUT HIS BACK TO THE BOYS HEADING FOR HIS CAR HEY TONY TONY GWYNN THEY SHOUT THE OUTFIELDER SEEMS NOT TO HEAR A BIG SECURITY GUARD IN THE BOYS' BEHALF LENDS HIS BARITONE HEY TONY BUT MR GWYNN GETS INTO HIS BLACK PORSCHE CONVERTIBLE AND DRIVES AWAY 9307270070 930727 WHAT'S NEWS WORLDWIDE ISRAEL INTENSIFIED ITS BOMBARDMENT OF GUERRILLA STRONGHOLDS IN LEBANON ISRAELI FORCES HAMMERED GUERRILLA POSITIONS FOR A SECOND DAY AS TENS OF THOUSANDS OF CIVILIANS ON BOTH SIDES OF THE BORDER FLED THE FIGHTING ARAB GUERRILLAS HIT BACK WITH ROCKET ATTACKS ON NORTHERN ISRAEL AT LEAST 39 PEOPLE WERE REPORTED KILLED AND 151 WOUNDED IN THE ARABISRAELI CLASHES MOST OF THE CASUALTIES WERE IN LEBANON LATE IN THE DAY THE SYRIAN ARMY ORDERED ITS TROOPS TO TAKE COMBAT POSITIONS OVERLOOKING PART OF ISRAEL'S SECURITY ZONE IN SOUTHERN LEBANON APPARENTLY TO GUARD AGAINST AN ISRAELI GROUND ASSAULT SECRETARY OF STATE CHRISTOPHER DUE TO ARRIVE IN THE REGION THIS WEEKEND ACCUSED PROIRANIAN HEZBOLLAH GUERRILLAS OF TRYING TO SABOTAGE PEACE TALKS BY ATTACKING ISRAELIS IN RECENT WEEKS YELTSIN EASED THE TERMS OF THE CENTRAL BANK'S SUDDEN CURRENCY REFORM THAT HAD SHOCKED RUSSIANS AND THROWN BUSINESS INTO CONFUSION THE PRESIDENT ISSUED A DECREE THAT NEARLY TRIPLED THE AMOUNT OF PRE1993 RUBLES CITIZENS CAN CHANGE FOR NEW NOTES AND EXTENDED A DEADLINE FOR THE BANK NOTE EXCHANGES TWO TOP UN COMMANDERS WARNED SERBS WHO ATTACKED A UN BASE IN SARAJEVO ON SUNDAY THAT THEY FACE IMMEDIATE RETALIATION IF THEY AGAIN LAUNCH AN OFFENSIVE AGAINST PEACEKEEPING TROOPS MEANWHILE BOSNIAN GOVERNMENT LEADERS ARRIVED IN GENEVA FOR MUSLIMCROATSERB PEACE TALKS THAT ARE SCHEDULED TO START TODAY BLACK AND WHITE POLITICIANS UNVEILED A DRAFT SOUTH AFRICAN CONSTITUTION THAT WOULD REPLACE APARTHEID WITH A DEMOCRATIC GOVERNMENT AND GUARANTEE EQUAL RIGHTS TO ALL RACES BUT RELEASE OF THE DOCUMENT WAS OVERSHADOWED BY THE SLAYINGS OF 11 WHITES AT A CAPE TOWN CHURCH SUNDAY AND THE DEATHS OF 70 BLACKS IN WEEKEND FACTIONAL CLASHES FLOOD WATERS FORCED THE SHUTDOWN OF A NUCLEAR POWER PLANT ON THE MISSOURI RIVER NEAR BROWNVILLE NEB AFTER AREA ROADS DESIGNATED FOR EMERGENCY EVACUATION BECAME IMPASSABLE ELSEWHERE THROUGHOUT THE MIDWEST NEW THUNDERSTORMS FED SWOLLEN RIVERS AND FURTHER STRAINED PROTECTIVE LEVEE SYSTEMS IN MANY STATES HAITI'S OUSTED PRESIDENT INTENDS TO NAME ROBERT MALVAL A PUBLISHER AS THE NATION'S NEW PRIME MINISTER THE STATE DEPARTMENT SAID BUT DESPITE EXILED PRESIDENT JEANBERTRAND ARISTIDE'S CHOICE OF A PRIME MINISTER INTERNATIONAL SANCTIONS WON'T BE LIFTED UNTIL OTHER STEPS ARE TAKEN TO RESOLVE HAITI'S POLITICAL CRISIS A US SPOKESMAN SAID IRANCONTRA PROSECUTORS ARE FINISHING A REPORT THAT WILL FORMALLY END THEIR 6 1/2YEAR 35 MILLION INVESTIGATION SOURCES CLOSE TO THE PROBE SAID INDEPENDENT COUNSEL WALSH WHO WAS THWARTED IN EFFORTS TO INTERVIEW FORMER PRESIDENT BUSH AND HIS TOP WHITE HOUSE LAWYER IS EXPECTED TO SEND THE FINAL REPORT TO A PANEL OF JUDGES WITHIN A MONTH UN ARMS INSPECTORS SAID IN BAGHDAD THAT THEY HAD SOME TECHNICAL POINTS TO CLEAR UP WITH IRAQ BEFORE INSTALLING MONITORING CAMERAS AT TWO MISSILE TEST SITES SEPARATELY A KUWAITI OFFICIAL SAID THE EMIRATE IS PREPARING A 1 BILLION CLAIM AGAINST IRAQ FOR CLEANUP COSTS IN CONNECTION WITH HUNDREDS OF POSTGULF WAR OIL WELL FIRES THE HOUSE URGED THE INTERNATIONAL OLYMPIC COMMITTEE TO REJECT BEIJING'S BID FOR THE SUMMER GAMES IN THE YEAR 2000 BECAUSE OF CHINA'S MASSIVE VIOLATIONS OF HUMAN RIGHTS IN A RESOLUTION PASSED BY A 28799 VOTE THE HOUSE SAID IT STRONGLY OPPOSES ALLOWING BEIJING TO HOST THE GAMES SYDNEY AUSTRALIA IS CONSIDERED THE FRONTRUNNER THE CLINTON ADMINISTRATION REASSURED NERVOUS ASIAN ALLIES ON THE US DEFENSE ROLE IN THE REGION LAYING OUT PLANS FOR A STRONGER AMERICAN MILITARY FORCE IN KOREA AND FOR EXPANDED DEFENSE ARRANGEMENTS WITH OTHER NATIONS SECRETARY OF STATE CHRISTOPHER DESCRIBED THE STRATEGY DURING MEETINGS IN SINGAPORE WITH ASIAN FOREIGN MINISTERS THREE POLICEMEN WERE DETAINED IN RIO DE JANEIRO AS SUSPECTS IN THE SLAYINGS OF SEVEN HOMELESS BOYS SHOT EARLY FRIDAY AS THEY SLEPT NEAR CANDELARIA CATHEDRAL BRAZIL'S PRESIDENT FRANCO CALLED A MEETING WITH LOCAL LEADERS TO FIND A WAY TO GET SOME 3000 CHILDREN OFF THE CITY'S STREETS DIED MATTHEW RIDGWAY 98 WHO COMMANDED THE ARMY'S FIRST MAJOR AIRBORNE CAMPAIGN LED THE 82ND AIRBORNE ON DDAY AND LATER SUCCEEDED GEN MACARTHUR DURING THE KOREAN WAR IN FOX CHAPEL PA 9307270069 930727 IBM'S HAHNE RESIGNS AS A DIRECTOR OF POLICY MANAGEMENT SYSTEMS COLUMBIA SC POLICY MANAGEMENT SYSTEMS CORP SAID LUTZ F HAHNE 51 YEARS OLD RESIGNED AS A DIRECTOR OF THE INSURANCE SOFTWARE COMPANY MR HAHNE PRESIDENT OF THE INDUSTRIAL SECTOR DIVISION OF INTERNATIONAL BUSINESS MACHINES CORP COULDN'T BE REACHED FOR COMMENT POLICY MANAGEMENT SAID IBM DOESN'T INTEND TO REPLACE MR HAHNE ON THE BOARD IBM WOULDN'T COMMENT AS TO WHY IT ISN'T REPLACING HIM AN IBM SPOKESMAN SAID MR HAHNE RESIGNED BECAUSE HIS DUTIES INCREASED IN MAY WHEN HE WAS PROMOTED TO HEAD THE INDUSTRIAL SECTOR DIVISION IBM HAS HAD A BOARD MEMBER AT POLICY MANAGEMENT SINCE IT BOUGHT 37 MILLION POLICY MANAGEMENT SHARES IN 1989 WHICH NOW AMOUNTS TO A 16 STAKE IN THE COMPANY AN IBM SPOKESMAN SAID POLICY MANAGEMENT OFFICIALS DIDN'T RETURN CALLS SEEKING COMMENT THE SECURITIES AND EXCHANGE COMMISSION IS CURRENTLY INVESTIGATING THE ACCURACY OF POLICY MANAGEMENT'S FINANCIAL REPORTING THE COMPANY'S STOCK FELL SHARPLY IN APRIL AFTER IT ANNOUNCED THAT FIRSTQUARTER EARNINGS WOULD FALL FAR SHORT OF ESTIMATES IBM WOULDN'T COMMENT ON WHETHER ITS ACTIONS WERE RELATED TO THE SEC INVESTIGATION IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY POLICY MANAGEMENT SHARES ROSE 125 CENTS TO 29375 SEPARATELY CYBERTEK CORP OF DALLAS SAID POLICY MANAGEMENT EXTENDED ITS 60 MILLION TENDER OFFER FOR THE COMPANY TO AUG 20 CYBERTEK SAID 859 OF ITS SHARES HAD BEEN TENDERED BY THE PREVIOUSLY ANNOUNCED DEADLINE OF LAST FRIDAY 9307270068 930727 SENATE CLEARS NOMINATION OF LEVITT FOR SEC HEAD WASHINGTON THE SENATE APPROVED PRESIDENT CLINTON'S NOMINATION OF ARTHUR LEVITT JR TO BE CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION THE SENATE ALSO APPROVED THE NOMINATION OF ECONOMISTS JOSEPH STIGLITZ AND ALAN BLINDER TO BE MEMBERS OF THE COUNCIL OF ECONOMIC ADVISERS WHICH IS HEADED BY LAURA TYSON IN ADDITION THE SENATE APPROVED THE NOMINATION OF EDWARD DESEVE TO BE CHIEF FINANCIAL OFFICER OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND RICHARD CARNELL TO BE ASSISTANT TREASURY SECRETARY FOR FINANCIAL INSTITUTIONS ALL THE NOMINATIONS WERE APPROVED BY VOICE VOTE 9307270067 930727 FINANCING BUSINESS HAWAIIAN ELECTRIC INDUSTRIES INC HAWAIIAN ELECTRIC INDUSTRIES INC HONOLULU PLANS TO SELL UP TO TWO MILLION NEW SHARES OF COMMON STOCK IN A PUBLIC OFFERING THE UTILITY HOLDING COMPANY WHICH CURRENTLY HAS 251 MILLION COMMON SHARES OUTSTANDING SAID IT WILL USE NET PROCEEDS TO REPAY COMMERCIAL PAPER BORROWINGS AND TO MAKE EQUITY INVESTMENTS IN OR ADVANCES TO ITS PRINCIPAL ELECTRIC UTILITY SUBSIDIARY SMITH BARNEY HARRIS UPHAM & CO IS LEAD UNDERWRITER 9307270066 930727 TECHNOLOGY NOVELL INC EXPECTS FLAT OPERATING NET IN ITS THIRD PERIOD BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC HURT BY LANGUISHING EUROPEAN SALES SAID OPERATING PROFIT FOR THE FISCAL THIRD QUARTER WILL BE ABOUT THE SAME AS THE 21 CENTS A SHARE IT EARNED A YEAR EARLIER THE DISCLOSURE INDICATES THAT NOVELL MAY HAVE A SIZABLE NET LOSS FOR THE QUARTER ENDING SATURDAY BECAUSE IT HAS ALREADY SAID IT INTENDS TO TAKE CHARGEOFFS RELATED TO ACQUISITIONS TOTALING ABOUT 300 MILLION OR 95 CENTS A SHARE IN THE PERIOD THE NEWS WAS DISCLOSED AFTER THE STOCK MARKET CLOSED HOWEVER RUMORS OF TROUBLE HAD PROMPTED SOME ANALYSTS TO SLASH EARNINGS ESTIMATES YESTERDAY NOVELL STOCK SKIDDED AS A RESULT FALLING 350 OR 141 TO 2125 IN OVERTHECOUNTER TRADING THE DEVELOPMENT MARKS A RARE STUMBLE FOR NOVELL A RAPIDLY EXPANDING COMPUTER NETWORKING CONCERN THAT HAS SEEN STRONG EARNINGS AND REVENUE GROWTH FOR MANY QUARTERS THE COMPANY SAID REVENUE WILL BE ABOUT 15 ABOVE THE 2433 MILLION A YEAR AGO THAT INDICATES REVENUE OF ABOUT 2798 MILLION IN RECENT QUARTERS NOVELL HAS COMMONLY POSTED REVENUE GAINS ON THE ORDER OF 25 OR MORE IN THE YEARAGO QUARTER NOVELL'S NET INCOME WAS 66 MILLION IN THE FIRST SIX MONTHS OF THIS YEAR NOVELL EARNED 1513 MILLION OR 49 CENTS A SHARE ON REVENUE OF 5409 MILLION NOVELL ATTRIBUTED THE PROBLEMS TO SLUGGISH DEMAND IN EUROPE AND SAID THAT OTHER MARKET FACTORS DURING THE THIRD QUARTER ARE VIEWED POSITIVELY BY THE COMPANY IT SAID SALES OF ITS NEW NETWARE 311 NETWORKING PRODUCT ARE GROWING IN ALL ITS MARKETS OUTSIDE EUROPE NONETHELESS SEVERAL ANALYSTS RAISED CONCERNS ABOUT THE COMPANY'S NEARTERM PROSPECTS AND STILL MAY NOT HAVE DROPPED EARNINGS ESTIMATES FAR ENOUGH YESTERDAY RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO WARNED BEFORE THE ANNOUNCEMENT THAT NOVELL'S EARNINGS EXCLUDING CHARGEOFFS COULD BE 22 CENTS TO 25 CENTS A SHARE THAT'S WELL BELOW HIS PREVIOUS ESTIMATE OF 27 CENTS A SHARE BUT STILL ABOVE THE 21 CENTS A SHARE THE COMPANY'S FORECAST INDICATES 9307270065 930727 CREDIT MARKETS TREASURY PRICES RISE FOR FIRST TIME IN A WEEK IN REACTION TO SLIGHT DECLINE IN COMMODITIES BY THOMAS T VOGEL JR AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR THE FIRST TIME IN A WEEK TREASURY PRICES ROSE POSTING MODERATE GAINS IN A LATE RALLY IN REACTION TO A SLIGHT DROP IN COMMODITIES PRICES THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 3/8 POINT OR NEARLY 375 FOR A BOND WITH A 1000 FACE VALUE TO 105 24/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 667 FROM 670 ON FRIDAY THE 10YEAR NOTE ROSE NEARLY 1/4 POINT TO 102 16/32 TO YIELD 590 DOWN FROM 593 PRICES HAD BEEN DOWN SLIGHTLY EARLY IN THE DAY WITH NO MAJOR ECONOMIC DATA OR NEWS EMERGING TO MOVE THE MARKET IN LIGHTVOLUME TRADING AS A RESULT ACTIVITY WAS DOMINATED BY BOND TRADERS MAKING SHORTTERM BETS ON THE MARKET TRADERS PUSHED PRICES LOWER BEFORE MIDDAY IN REACTION TO CONCERNS ABOUT WHEN THE FEDERAL RESERVE MIGHT HAVE TO RAISE SHORTTERM RATES TO COMBAT INFLATION AND IN REACTION TO WORRIES ABOUT THE OUTLOOK FOR DEFICIT REDUCTION THESE SAME CONCERNS WEIGHED DOWN THE MARKET LAST WEEK ALBEIT WITH A GREATER EFFECT BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN HOPES FOR A SIGNIFICANT CUT IN THE FEDERAL DEFICIT UNDER PRESIDENT CLINTON'S ECONOMIC PACKAGE AND THE RESULTING REDUCTION IN THE ISSUANCE OF TREASURY SECURITIES HAVE BEEN A MAJOR FACTOR IN THE SHARP DROP IN TREASURY YIELDS OVER THE PAST FEW MONTHS IN ADDITION DEALERS WERE NERVOUSLY LOOKING AT SUPPLY THE TREASURY WILL BREAK A MONTHLONG DROUGHT IN COUPON ISSUANCE TODAY WITH THE SALE OF 16 BILLION OF TWOYEAR NOTES FOLLOWED BY 11 BILLION OF FIVEYEAR NOTES TOMORROW DESPITE THE BOND MARKET'S DECLINE IN THE MORNING BY DAY'S END PRICES HAD MOVED UP PARTLY IN REACTION TO A 049 POINT DROP IN THE COMMODITY RESEARCH BUREAU'S INDEX OF COMMODITIES TO 21850 BONDS REBOUNDED HIGHER IN A LASTHOUR RALLY AFTER SEEING THE CRB INDEX EDGE LOWER ON THE DAY SAID TECHNICAL ANALYST JIM DONNELLY IN A DAILY REPORT FROM TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES ALSO CONTRIBUTING TO THE PRICE RISE WERE TRADERS WHO WERE FORCED TO COVER SOCALLED SHORT POSITIONS IN A SHORT POSITION A TRADER SELLS BORROWED SECURITIES IN HOPES OF BEING ABLE TO REPLACE THEM LATER AT A LOWER COST AND POCKETING THE DIFFERENCE A TRADER COVERS A SHORT BY REPLACING THE SECURITIES ACCORDING TO ONE ANALYST INVESTORS AT THE LONG END OF THE MARKET HAVE OVERDONE THEIR WORRIES ABOUT MR CLINTON'S DEFICITREDUCTION PLAN OVER THE PAST WEEK TRADERS HAD PUSHED DOWN THE PRICE OF THE 30YEAR BOND AMID CONCERNS ABOUT A POSSIBLE SCALING BACK OF THE AMOUNT OF DEFICIT REDUCTION FROM 500 BILLION AND CONCERNS OVER THE POLITICAL TROUBLES OF REP DAN ROSTENKOWSKI D ILL THE INFLUENTIAL CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE BUT DOUGLAS LEE CHIEF ECONOMIST AT NATWEST WASHINGTON ANALYSIS SAID CONGRESS LOOKS ON TRACK TO COMPLETE WORK ON THE BUDGET ON SCHEDULE THEY THE DEMOCRATS KNOW THEY HAVE TO DO SOMETHING AND THEY WILL MR LEE SAID AS FOR THIS WEEK'S SALES OF TWOYEAR NOTES AND FIVEYEAR NOTES THE TWOYEAR NOTE YIELDED 422 IN WHENISSUED TRADING AND THE FIVEYEAR NOTE YIELDED 524 IN WHENISSUED TRADING MEANWHILE FED CHAIRMAN ALAN GREENSPAN REJECTED A CONGRESSIONAL SUGGESTION THAT BANKS BE REQUIRED TO PUBLICIZE ACTUAL INTEREST RATES CHARGED ON LOANS TO BUSINESSES RATHER THAN POSTING A SINGLE PRIME RATE REP HENRY GONZALEZ CHAIRMAN OF THE HOUSE BANKING COMMITTEE IN A LETTER TO THE FED CHIEF LAST MONTH SAID THAT BY REFUSING TO REVEAL THAT THEY MAKE LOANS TO THEIR BEST CUSTOMERS AT RATES BOTH ABOVE AND BELOW THE PRIME RATE THEY POST BANKS LIMIT COMPETITION BY MAKING IT DIFFICULT FOR SMALL BUSINESSES TO SHOP FOR THE BEST BORROWING TERMS THE PRIME RATE IS CURRENTLY 6 THE TEXAS DEMOCRAT SAID THAT THE CENTRAL BANK SHOULD FORCE BANKS TO MAKE ACTUAL LENDING RATES PUBLICLY AVAILABLE INSTEAD OF ALLOWING BANKS TO PUBLISH A DECEPTIVE PRIME RATE IN HIS REPLY LETTER MR GREENSPAN REJECTED MR GONZALEZ'S SUGGESTION NOTING THAT ALL BANKS DON'T PUBLISH THE SAME PRIME RATE IN FACT HE SAID A ROUTINE FED SURVEY SHOWED 96 OF 348 BANKS REPORTED A PRIME RATE OTHER THAN 6 AND HE SAID THAT FORCING BANKS TO REPORT ACTUAL LENDING RATES WOULDN'T NECESSARILY INCREASE COMPETITION BUT THAT IT WOULD INTRODUCE A COMPLEX AND POTENTIALLY CONFUSING REQUIREMENT UNDETERRED MR GONZALEZ SENT ANOTHER LETTER ASKING THE FED TO DEVISE A BETTER DEFINITION OF THE PRIME RATE MR GREENSPAN OFFERED TWO EXPLANATIONS FOR THE WIDE GAP BETWEEN THE PRIME RATE AND OTHER SHORTTERM INTEREST RATES FIRST HE SAID BANKERS CONSIDER LOANS AS BEING RISKIER THESE DAYS GIVEN THE SUBSTANTIAL LOAN LOSSES BANKS HAVE FACED AND HE SAID THAT REGULATORY PRESSURES AND HIGHER DEPOSITINSURANCE PREMIUMS HAVE INCREASED THE COSTS OF TAKING DEPOSITS AND MAKING LOANS HERE ARE THE RESULTS OF YESTERDAY'S TREASURY BILL AUCTIONS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JULY 29 THE 13WEEK BILLS MATURE OCT 28 1993 AND THE 26WEEK BILLS MATURE JAN 27 1994 IF GOSSIP COLUMNIST LIZ SMITH EVER CHANGES CAREERS SHE COULD MAKE A FORTUNE IN THE MARKET FOR DISTRESSED BONDS WHERE BOND PRICES CAN JUMP OVERNIGHT BASED ON RUMOR AND GOSSIP THE LATEST TALES HAVE CENTERED ON RETAILER RH MACY & CO STILL MIRED IN BANKRUPTCYLAW PROCEEDINGS THE THREE MACY JUNK BOND ISSUES HAVE BEEN PROPELLED TO TWICE THEIR PRICES OF JUST ONE MONTH AGO BY A SERIES OF RUMORS OF HEAVY PURCHASES YESTERDAY THE BONDS FLUTTERED UPWARD IN REACTION TO NEWS REPORTS ABOUT PURPORTED BUYING BY TWO WELLKNOWN INVESTORS IN DISTRESSED SECURITIES FIDELITY INVESTMENT'S CAPITAL AND INCOME FUND AND TRUST CO OF THE WEST THE 145 SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 ROSE 2 1/2 POINTS OR 25 FOR A BOND WITH A 1000 FACE VALUE TO 35 1/2 YESTERDAY THEY HAD RISEN AS HIGH AS 40 LAST WEEK BOTH FUNDS DO OWN SUBSTANTIAL CHUNKS OF MACY'S BANK DEBT BUT THIS RESTRICTS THEM FROM BUYING THE BONDS BECAUSE AS BANK DEBT HOLDERS THEY RECEIVE INSIDE INFORMATION ABOUT THE RETAILER WE DON'T HAVE ANY MACY BONDS AND WE ARE NOT IN THE MARKET FOR ANY MACY BONDS SAID HOWARD MARKS EXECUTIVE VICE PRESIDENT AT TRUST CO OF THE WEST YESTERDAY A FIDELITY OFFICIAL SAID THAT THE MUTUAL FUND FIRM DOES NOT HOLD ANY OF THE MACY BONDS IN THE CAPITAL AND INCOME FUND AT CURRENT BOND PRICES THE MARKET VALUES MACY NEAR 3 BILLION OR ABOUT EIGHT TIMES THE COMPANY'S PROJECTED CASH FLOW FOR 1994 DESPITE THIS LOFTY EVALUATION SEVERAL ANALYSTS HAVE REITERATED BUY RECOMMENDATIONS RECENTLY INCLUDING JACK HERSCH OF BROKERAGE FIRM MJ WHITMAN WHO HAS SAID HE PERSONALLY OWNS SOME OF THE SENIOR SUBORDINATED DEBENTURES MR HERSCH SAID HE WOULD NOT COMMENT ON HIS PERSONAL POSITION BUT THE PRICE INCREASE HAS BEEN SO SHARP THOUGH TRADING VOLUME HAS BEEN LIGHT THAT MANY TRADERS AND INVESTORS IN DISTRESSED BONDS ARE SPECULATING THAT THE MARKET IS BEING MANIPULATED A LOT OF THE DEMAND HAS COME FROM REGIONAL DEALERS SAID MAX HOLMES DIRECTOR OF BANKRUPTCY RESEARCH AT SALOMON BROTHERS INC MEANWHILE TRADING IN THE SECONDARY MARKET FOR INVESTMENTGRADE BONDS AND JUNK BONDS WAS EXTREMELY QUIET AS IS TYPICAL ON A SUMMER MONDAY TRADERS SAID PRICES OF MUNICIPAL BONDS ENDED MOSTLY UNCHANGED AFTER A QUIET SESSION NO LARGE BOND OFFERINGS WERE MADE BY MUNICIPALITIES AS IS TYPICAL FOR A MONDAY BUT OF THE MORE THAN 10 BILLION IN BONDS OFFERED DURING THE PAST TWO WEEKS QUITE A FEW BONDS HAVE YET TO FIND BUYERS AND ALTHOUGH ISSUANCE IS SEEN SLOWING FROM THE LEVEL OF LAST TWO WEEKS UNTIL ISSUERS AND DEALERS CAN GET A BETTER FEEL FOR WHERE INTEREST RATES ARE HEADED MORE THAN 3 BILLION IN OFFERINGS OF 100 MILLION OR MORE HAVE BEEN TENTATIVELY SCHEDULED FOR THIS WEEK AMONG THE LARGEST ISSUES EXPECTED THIS WEEK ARE A 540 MILLION NEGOTIATED OFFERING OF NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY BONDS VIA A GROUP LED BY SMITH BARNEY HARRIS UPHAM & CO AND A 486 MILLION OFFERING OF JACKSONVILLE FLA ELECTRIC AUTHORITY REVENUE REFUNDING BONDS VIA A LEHMAN BROTHERS GROUP IN SECONDARY TRADING THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S 55 GENERAL TRANSPORTATION REFUNDING BONDS DUE 2022 FINISHED UNCHANGED AT 96 TO YIELD 575 AMONG OTHER ISSUES THE FLORIDA BOARD OF EDUCATION'S 540 BONDS DUE 2018 FINISHED 1/8 HIGHER AT 96 1/4 TO YIELD 566 PRICES OF MORTGAGE SECURITIES ENDED SLIGHTLY HIGHER AS TRADING QUIETED AFTER LAST WEEK'S HECTIC ACTIVITY AS RATES ROSE LAST WEEK CREATING A BRIEF RESPITE FROM THE THREAT OF INCREASED HOMELOAN REFINANCING MORTGAGE BANKERS SHED VAST AMOUNTS OF RECENTLY ORIGINATED LOANS INTO THE SECONDARY MARKET DONALDSON LUFKIN & JENRETTE SECURITIES CORP ESTIMATES THAT BANKERS HAVE SOLD 30 OF THE LOANS THEY ORIGINATED COMPARED WITH 10 TWO WEEKS EARLIER AFTER SELLING THE LOANS THE BANKS PASS ON THE INTEREST AND PRINCIPAL PAYMENTS TO THE BUYERS MOST OF THE BUYERS OF THOSE NEW LOANS MAINLY 65 AND 7 SECURITIES WERE DEALERS WHO NEEDED THE COLLATERAL TO CREATE REAL ESTATE MORTGAGE INVESTMENT CONDUITS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR AUGUST DELIVERY ENDED 1/8 HIGHER AT 99 18/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES FINISHED 5/32 HIGHER AT 98 23/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FINISHED 5/32 HIGHER AT 98 20/32 YIELD SPREADS OF MORTGAGES OVER TREASURYS HAVE REMAINED STEADY TO TIGHTER ONE REASON FOR THAT IS THE LACK OF NET NEW MORTGAGE LOAN SUPPLY IN THE MARKET MOST OF THE NEW SECURITIES SOLD LAST WEEK REPRESENT REFINANCED MORTGAGE LOANS MEANING THE NEW LOANS SIMPLY REPLACED OLD ONES FOR THAT TO CHANGE HOME STARTS WILL HAVE TO ACCELERATE LAURA JERESKI CONTRIBUTED TO THIS ARTICLE 9307270064 930727 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA'S DETERMINATION TO SOLVE ITS ECONOMIC PROBLEMS WILL PRODUCE A HARD LANDING THAT WILL BRUISE HONG KONG RESEARCHERS IN THE BRITISH COLONY SAID THE HOT CHINESE ECONOMY HAS REACHED A TURNING POINT UNDER BEIJING'S CONTROL MEASURES THAT WILL SLOW GROWTH IN THE CLOSELY LINKED HONG KONG ECONOMY FORECASTERS AT HSBC HOLDINGS PLC'S HONGKONG & SHANGHAI BANKING CORP SAID CHINA'S 14 INFLATIONADJUSTED EXPANSION IN THE FIRST HALF OUTPACED THAT IN 1988 WHEN THE ECONOMY LAST PEAKED UNDERSCORING INFLATIONARY PRESSURES THE REPORT SAID THE CHINESE MONEY SUPPLY EXPANDED 40 IN THIS YEAR'S FIRST FIVE MONTHS THE REPORT PREDICTED INTERRUPTIONS OF PRODUCTION AND CONSTRUCTION PROJECTS DEVALUATIONS OF SOME ASSETS AND INCREASES IN UNEMPLOYMENT IT ESTIMATED GROWTH IN CHINA'S GROSS NATIONAL PRODUCT WILL SLOW TO 8 IN THE SECOND HALF FROM 14 IN THE FIRST HALF AND BRAKE TO 6 NEXT YEAR THAT COULD SHAVE HONG KONG'S EXPANSION TO 51 OR LESS FROM THE FORECAST 55 AND HURT ITS STOCK AND PROPERTY MARKETS THE OFFICE VACANCY RATE IN TOKYO ROSE TO 75 IN JUNE FROM 7 IN MARCH IKOMA DATA SERVICE SYSTEM A PRIVATE RESEARCH AGENCY IN OSAKA BLAMED JAPAN'S SLUGGISH ECONOMY FOR THE SHRINKING DEMAND FOR OFFICE SPACE THE VACANCY RATE HAS BEEN ADVANCING STEADILY SINCE IT MARKED ITS LOWEST LEVEL OF 06 IN MAY 1990 IN THE QUARTER ENDED JUNE 30 THE AVERAGE TOKYO RENT PER 33 SQUARE METERS WAS 27625 OFF 16 FROM THE PREVIOUS QUARTER REPRESENTATIVES OF 17 US CORPORATIONS ARRIVED IN VIETNAM TO DISCUSS BUSINESS AND TRADE POSSIBILITIES WITH THE HANOI LEADERSHIP THE USVIETNAM TRADE COUNCIL A WASHINGTONBASED GROUP THAT SEEKS PREPARATIONS FOR RESUMPTION OF ECONOMIC TIES IF THE US LIFTS AN 18YEAROLD EMBARGO SPONSORED THE TRIP AFTER VIETNAM ASKED TO MEET WITH US COMPANIES THAT WERE SERIOUS ABOUT DOING BUSINESS IN THE COUNTRY THE DELEGATION INCLUDED BLUECHIP FIRMS RANGING FROM OIL PRODUCERS TO ELECTRONICS AND CONSUMERPRODUCTS MAKERS ROMANIA WHICH HAS BEEN INCHING TOWARD A MARKET ECONOMY SINCE LATE 1989 MUST QUICKEN THE PACE THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID THE FORUM OF WEALTHY DEMOCRACIES URGED ACCELERATED STRUCTURAL REFORMS AND CREATION OF CONDITIONS FOR SUSTAINED GROWTH THE ECONOMY SHRANK A CUMULATIVE 28 IN 1991 AND 1992 AND INFLATIONADJUSTED WAGES HAVE PLUMMETED INFLATION HAS RANGED FROM 150 TO 200 A YEAR CONFIDENCE IN THE LEU CURRENCY HAS BEEN UNDERMINED AND PRODUCTION CONTINUES TO FALL IN A PRICECONTROLLED ECONOMY DOMINATED BY A FEW MONOPOLIES PURSUIT OF PRIVATIZATION HAS STALLED SOUTH KOREA HAD A LACKLUSTER FIRSTHALF PERFORMANCE IN ATTRACTING FOREIGN INVESTMENT WHICH FELL 76 TO 476 MILLION FROM A YEAR EARLIER INVESTMENTS FROM THE US AND JAPAN ROSE 94 TO 198 MILLION AND 16 TO 127 MILLION RESPECTIVELY BUT THOSE FROM THE EUROPEAN COMMUNITY TUMBLED 37 TO 103 MILLION MOST OF THE INVESTMENTS WERE MADE IN THE SERVICE SECTOR MANUFACTURING RECORDED A DROP THOUGH THE ELECTRONICS AREA LOGGED A SHARP RISE LIFE INSURANCE PURCHASES THROUGH JAPAN'S POSTS AND TELECOMMUNICATIONS MINISTRY PLUNGED BOTH IN NUMBER AND VALUE FOR THE FIRST TIME SINCE THE GOVERNMENT BEGAN RECORDING THE DATA IN 1986 IN THE QUARTER ENDED JUNE 30 THE NUMBER OF POSTAL LIFE INSURANCE CONTRACTS SHRANK 17 TO ABOUT 22 MILLION WHILE THEIR PREMIUM VALUE DROPPED 11 TO 539 MILLION THE SHARP DECLINES REFLECTED COMPARISONS WITH BRISK YEAREARLIER LEVELS BUT ALSO REFLECTED THE COUNTRY'S PROTRACTED ECONOMIC SLUMP THAILAND'S CENTRAL BANK AND THE NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT BOARD EACH REVISED ITS OUTLOOK FOR THIS YEAR'S ECONOMY BUT IN AN UNUSUAL SITUATION POINTED IN DIFFERENT DIRECTIONS THE ECONOMIC BOARD INCREASED ITS GROWTH PROJECTION FOR GROSS DOMESTIC PRODUCT TO 79 FROM 77 WHILE THE BANK OF THAILAND CUT ITS FORECAST TO 75 FROM 78 GDP LAST YEAR GREW 74 THE BOARD'S OPTIMISM REFLECTS THE VIEW THAT PRIVATE INVESTMENT AND CONSUMER AND GOVERNMENT SPENDING WILL CONTINUE TO RISE THE CENTRAL BANK'S REDUCTION IS BASED ON SLOWING AGRICULTURAL PRODUCTION AND WEAK EXPORTS IT PREDICTED FARM OUTPUT WILL INCREASE JUST 2 WHILE THE BOARD SEES A 26 RISE BOTH DOWN FROM 45 GROWTH LAST YEAR THE BANK CUT ITS EXPORT GROWTH ESTIMATE TO 12 FROM 15 AFTER A FIRSTHALF INCREASE OF ONLY 97 WHILE IMPORTS ROSE 15 MEANWHILE THAILAND'S INTERIOR MINISTRY APPROVED IN PRINCIPLE ALLOWING THOUSANDS OF ITS EMPLOYEES TO WORK AT HOME THE AIM IS TO EASE CHRONIC TRAFFIC CONGESTION IN BANGKOK CLOGGED BY 25 MILLION VEHICLES A DAY THE AGENCY EMPLOYS THE VAST MAJORITY OF THAILAND'S FOUR MILLION GOVERNMENT WORKERS JAPAN'S FISHERIES AGENCY NEXT APRIL WILL LAUNCH A FIVEYEAR STUDY OF SEA TURTLES TRACKING THEM BY SATELLITE TO LEARN THEIR LIVING PATTERNS AND DEVELOP POLICIES TO RESTORE THEIR DECLINING NUMBERS SWITZERLAND'S HOTELS IN THE FIRST HALF LOGGED 164 MILLION OVERNIGHT STAYS THE FEWEST IN FIVE YEARS AND DOWN 21 FROM A YEAR EARLIER BOOKINGS BY US TOURISTS FELL 74 9307270063 930727 CREDIT RATINGS LOS ANGELES RECEIVES LOWER RATINGS ON DEBT NEW YORK THE IMPACT OF THE RECESSION LED MOODY'S INVESTORS SERVICE INC TO DOWNGRADE LOS ANGELES' GENERAL OBLIGATIONS BONDS WHILE STANDARD & POOR'S CORP MAINTAINED ITS RATING BUT CONTINUED ITS NEGATIVE OUTLOOK MOODY'S LOWERED ITS RATING TO DOUBLEA1 FROM TRIPLEA ON THE CITY'S BONDS IN CONJUNCTION WITH TODAY'S SALE OF ABOUT 178 MILLION IN GENERAL OBLIGATION BONDS AFTER THE SALE LOS ANGELES WILL HAVE ABOUT 150 BILLION IN DEBT OUTSTANDING STANDARD & POOR'S MAINTAINED ITS DOUBLEA RATING ON 187 MILLION OF LOS ANGELES' 1993A AND 1993B GENERAL OBLIGATION BONDS THE RATING HAS NOT BEEN CHANGED IN SEVERAL YEARS BUT S&P REPEATED ITS NEGATIVE OUTLOOK WHICH WAS ISSUED LAST YEAR WE DIDN'T FEEL THAT THERE WAS A MATERIAL CHANGE IN THE CREDIT CHARACTERISTICS ALTHOUGH THERE'S NOT A LOT OF GOOD NEWS IN THE LOCAL ECONOMY AN S&P SPOKESMAN SAID THE RECESSION AND DECLINES IN TAX REVENUE HAVE HURT THE CITY'S REVENUE LEADING TO WIDENING BUDGET GAPS AND SHRINKING RESERVES MOODY'S SAID HOWEVER S&P NOTED MEASURES TAKEN BY THE CITY'S ADMINISTRATION SUCH AS A HIRING FREEZE AND DELAYS OF CAPITAL PROJECTS MITIGATED THE IMPACT OF REVENUE LOSSES TOTALING 119 MILLION DURING FISCAL 1992 MOODY'S SAID IT EXPECTS THE RECESSION TO CONTINUE FOR AT LEAST ANOTHER YEAR IN SOUTHERN CALIFORNIA WHILE THE PRESENT OFFERING WILL NEARLY DOUBLE THE CITY'S GENERAL OBLIGATION DEBT S&P IS ALSO CAUTIOUS WHILE LOS ANGELES HAS MANAGED WELL SO FAR THE SPOKESMAN SAID WE WANT TO SEE WHAT HAPPENS OVER THE NEXT YEAR TO THE LOCAL ECONOMY 9307270062 930727 WHO'S NEWS AMERICAN EXPRESS'S CHENAULT IS LIKELY TO GET HIGH POST AT LEAD UNIT TRS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL AS HARVEY GOLUB CONTINUES TO MAKE HIS IMPRINT ON AMERICAN EXPRESS CO KENNETH CHENAULT IS EXPECTED TO BE NAMED PRESIDENT OF THE US OPERATIONS AT TRAVEL RELATED SERVICES THE COMPANY'S MAIN SUBSIDIARY IN HIS NEW ROLE EXPECTED TO BE EFFECTIVE TODAY MR CHENAULT 42 YEARS OLD WILL BE THE THIRD MOST POWERFUL EXECUTIVE AT AMERICAN EXPRESS AND ONE OF THE HIGHEST RANKING BLACKS AT A MAJOR CORPORATION JONATHAN LINEN THE PREVIOUS PRESIDENT OF TRS IS TO BECOME A VICE CHAIRMAN OF THE PARENT COMPANY AND A MEMBER OF THE OFFICE OF THE CHAIRMAN THE MOVE IS THE LATEST BY THE 54YEAROLD MR GOLUB WHO BECAME CHIEF EXECUTIVE OFFICER OF AMERICAN EXPRESS IN FEBRUARY TO SHUFFLE KEY PLAYERS ACCORDING TO PEOPLE FAMILIAR WITH THE PENDING NEWS LATE LAST MONTH HE PROMOTED JEFFREY STIEFLER TO PRESIDENT OF THE COMPANY FROM A SIMILAR POST AT THE IDS FINANCIAL SERVICES UNIT A SPOKESMAN FOR NEW YORKBASED AMERICAN EXPRESS DECLINED TO COMMENT AND OFFICIALS INVOLVED WERE NOT AVAILABLE MR CHENAULT HAS BEEN RUNNING THE CONSUMER CHARGE CARD GROUP AT TRS SINCE 1989 AFTER JOINING THE COMPANY IN 1981 FROM BAIN & CO A MANAGEMENT CONSULTING FIRM HIS HANDLING OF THE COMPANY'S FLAGSHIP GREEN CHARGE CARD DURING A ROUGH COMPETITIVE PERIOD WHEN MERCHANTS WERE PUSHING FOR LOWER TRANSACTION FEES APPARENTLY WON MR GOLUB'S FAVOR AS DID MR CHENAULT'S MOVES TO CUT COSTS AND HIS INTRODUCTION OF MEMBERSHIP MILES AN AIRLINEMILEAGE BONUS PROGRAM THAT HAS INCREASED CARD USAGE ALSO MR CHENAULT'S CONFIDENCEINSPIRING PERFORMANCE AT A BOARD MEETING LAST NOVEMBER WHEN THE GROUP WAS ASSESSING THE FUTURE OF THE CARD BUSINESS IS SAID TO HAVE REFLECTED WELL ON MR GOLUB IN HIS QUEST TO SUCCEED JAMES ROBINSON AS HEAD OF THE COMPANY AT THE TIME MR GOLUB WAS CHIEF EXECUTIVE OF TRS A ROLE HE WILL CONTINUE WITH MR CHENAULT REPORTING TO MR CHENAULT WILL BE CONSUMER CARDS THE OPTIMA CHARGE CARD AND THE TRAVEL SERVICES GROUP HEADED BY ROGER BALLOU WHICH INCLUDES CORPORATE TRAVEL CHARGE AND PURCHASING CARDS AND 1700 CONSUMER TRAVEL OFFICES WORLDWIDE SIGNIFICANTLY MR CHENAULT WILL NOT HAVE AS MUCH AUTHORITY AS MR LINEN WHO ALSO HAD TRS INTERNATIONAL REPORTING DIRECTLY TO HIM MR LINEN 49 WILL NOW BE RESPONSIBLE FOR EXTERNAL CONSTITUENCIES INCLUDING MAJOR CORPORATE TRAVEL AND CARD CUSTOMERS BANKS AND INDUSTRY ASSOCIATIONS AN AMERICAN EXPRESS VETERAN HE TOOK OVER TRS IN FEBRUARY 1992 AFTER A TROUBLESHOOTING STINT AS HEAD OF THE THEN SHEARSON LEHMAN BROTHERS SUBSIDIARY THE INTERNATIONAL PORTION OF TRS WILL NOW REPORT DIRECTLY TO MR GOLUB AS CHIEF EXECUTIVE OF THE UNIT HEADING THE INTERNATIONAL UNIT WILL BE R CRAIG HOENSHELL 49 WHO SUCCEEDS TOMMASO ZANZOTTO 52 MR ZANZOTTO IS EXPECTED TO LEAVE THE COMPANY TO RETURN TO HIS NATIVE ITALY AFTER A YEAR'S TRANSITION MR HOENSHELL WHO HAD BEEN HEAD OF TRAVELERS CHECKS MR CHENAULT AND MR BALLOU ALL WILL JOIN AN EXPANDED PLANNING AND POLICY COMMITTEE COMPOSED OF THE DOZEN OR SO SENIOR OFFICERS OF THE COMPANY IT IS UNCLEAR WHO WILL SUCCEED MR HOENSHELL IN TRAVELERS CHECKS AND MR CHENAULT AS HEAD OF THE CONSUMER GROUP 9307270061 930727 BUSINESS BRIEF KOMAG INC PROFIT MORE THAN DOUBLED IN 2ND PERIOD SALES ROSE 35 KOMAG INC SAID NET INCOME FOR THE SECOND QUARTER ENDED JULY 4 MORE THAN DOUBLED TO 81 MILLION OR 37 CENTS A SHARE THE MILPITAS CALIF MAKER OF DISK DRIVE COMPONENTS CITED STRONG DEMAND FOR POWERFUL DISK DRIVES WHICH HAS BEEN SPURRED IN RECENT QUARTERS BY PERSONAL COMPUTER PRICE CUTTING THAT HAS INCREASED PC SALES SALES JUMPED 35 TO 1032 MILLION FROM 765 MILLION IN THE YEAREARLIER SECOND QUARTER KOMAG HAD NET INCOME OF 34 MILLION OR 16 CENTS A SHARE FOR THE SIX MONTHS KOMAG EARNED 157 MILLION OR 72 CENTS A SHARE COMPARED WITH YEAREARLIER PROFIT OF 64 MILLION OR 30 CENTS A SHARE SALES ROSE 33 TO 1967 MILLION FROM 1476 MILLION 9307270060 930727 TECHNOLOGY BRIEF CRAY RESEARCH INC EARNINGS FOR SECOND QUARTER QUADRUPLED YEAREARLIER NET CRAY RESEARCH INC EAGAN MINN SAID ITS QUARTERLY EARNINGS CONTINUED TO IMPROVE AND IT EXPECTS WITH A STRONG BACKLOG OF ORDERS ON HAND TO RETURN TO PROFITABILITY FOR THE YEAR THE SUPERCOMPUTER MAKER SAID IT HAD EARNINGS OF 62 MILLION OR 24 CENTS A SHARE IN THE SECOND QUARTER ENDED JUNE 30 ON REVENUE OF 1877 MILLION COMPARED WITH EARNINGS OF 13 MILLION OR FIVE CENTS A SHARE ON REVENUE OF 185 MILLION A YEAR EARLIER EARNINGS IN THE LATEST QUARTER MORETHAN QUADRUPLED YEAREARLIER RESULTS CHAIRMAN AND CHIEF EXECUTIVE JOHN CARLSON SAID CRAY RESEARCH HAD A RECORD BACKLOG OF 429 MILLION IN ORDERS AT THE END OF THE QUARTER COMPARED WITH A 381 MILLION BACKLOG AT THE END OF THE FIRST QUARTER AND 301 MILLION AT THE END OF LAST YEAR'S SECOND QUARTER MR CARLSON SAID DEMAND FOR THE COMPANY'S HIGHEND C90 COMPUTERS REMAINED STRONG AND LOWEND SYSTEMS WERE PENETRATING NEW MARKETS IN ADDITION HE SAID CRAY RESEARCH HAS SEVERAL ORDERS FOR A SOONTOBEANNOUNCED MASSIVELY PARALLEL SUPERCOMPUTER SYSTEM 9307270058 930727 LETTERS TO THE EDITOR HMO PHYSICIANS SHOW HIGH CERTIFICATION RATE HARVEY WACHSMAN MD IN HIS JUNE 7 LETTER TO THE EDITOR ALLEGES THAT ALL TOO OFTEN HMOS HIRE NONBOARDCERTIFIED PHYSICIANS WHO PROVIDE INFERIOR CARE TO PATIENTS AS THEY IGNORE THE RISKS AND PAT THEMSELVES ON THE BACK FOR PROVIDING LOWCOST CARE THIS UNSUBSTANTIATED ALLEGATION IN FACT CONFLICTS WITH REALITY TOWERS PERRIN DATA ON 352 HMOS SHOW CERTIFICATION RATES AMONG HMO PHYSICIANS SIGNIFICANTLY HIGHER PARTICULARLY AMONG PRIMARY CARE PHYSICIANS THAN RATES IN THE OVERALL PHYSICIAN POPULATION 80 VS 69 FOR PRIMARY CARE 82 VS 78 FOR SPECIALISTS IN FACT IN LETTERS TO THE EDITOR IN THE MAY 20 NEW ENGLAND JOURNAL OF MEDICINE DR AP WALLACE EXPRESSED CONCERN THAT THE PRACTICE BY HEALTH MAINTENANCE ORGANIZATIONS OF DEMANDING BOARD CERTIFICATION OF PARTICIPATING PHYSICIANS HAS BECOME AN IMPORTANT FACTOR IN INFLUENCING ACCESS TO HEALTH CARE IN MASSACHUSETTS AND THE REST OF THE UNITED STATES HMOS RECOGNIZE THAT PURCHASERS AND CONSUMERS OF MEDICAL CARE VIEW BOARD CERTIFICATION AS AN INDICATOR OF QUALITY HIRING PRACTICES AND REQUIREMENTS FOR CREDENTIALING REFLECT THIS RECRUITMENT STRATEGIES IN SUCCESSFUL HMOS INVOLVE HIRING THE MOST QUALIFIED PHYSICIANS REQUIRING BOARD CERTIFICATION FOR LONGTERM ASSOCIATION WITH THE GROUP PAYING COMPETITIVE SALARIES AND CONTROLLING COSTS BY HAVING QUALIFIED PHYSICIANS MANAGE UTILIZATION WITHOUT COMPROMISING ON QUALITY FIFTY YEARS' EXPERIENCE IN THE LARGEST GROUP MODEL HMO IN THE WORLD KAISER PERMANENTE MEDICAL CARE PROGRAM WITH 9000 PHYSICIANS PROVIDING CARE TO MORE THAN SIX MILLION PLAN MEMBERS NATIONWIDE CONFIRMS THAT IN THE LONG TERM THIS IS THE ONLY STRATEGY FOR SUCCESS 9307270057 930727 WHO'S NEWS ELCOR CORP ELCOR CORP DALLAS PHIL SIMPSON 58YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF REPUBLIC GYPSUM CO WAS NAMED TO THE BOARD OF THIS MAKER OF ROOFING AND INDUSTRIAL PRODUCTS INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS 9307270056 930727 FOREIGN EXCHANGE DOLLAR ENDS UP A BIT AGAINST EUROPE'S CURRENCIES BUT LOSES GROUND TO THE YEN BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR EDGED INTO THE DOLDRUMS MONDAY ENDING SLIGHTLY HIGHER AGAINST EUROPEAN CURRENCIES BUT LOSING GROUND TO THE YEN IN GENERALLY UNEVENTFUL TRADING TURMOIL IN THE EUROPEAN MONETARY SYSTEM OR EMS CONTINUED WITH THE BELGIAN FRANC EMERGING AS THE LATEST TARGET AMONG INVESTORS BETTING AGAINST THE EXCHANGE RATE MECHANISM OR ERM LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17245 MARKS UP FROM 17195 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10670 YEN DOWN FROM 10685 YEN STERLING WAS TRADING AT 15020 DOWN FROM 15040 ABOUT NOON ON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10655 YEN AND AT 17236 MARKS DESPITE THE BELGIAN FRANC'S TROUBLES WHICH PROMPTED SHARP INCREASES IN INTEREST RATES THERE TRADERS SAID THE REST OF THE ERM SEEMED TO STABILIZE MONDAY CALMING THE REST OF THE MARKET WE'RE IN A HOLDING PATTERN SAID EARL JOHNSON A VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN CHICAGO ALL THE TALK IS FOCUSED ON WHETHER THE GERMANS WILL CUT INTEREST RATES ON THURSDAY HE ADDED THE BUNDESBANK CENTRAL BANK COUNCIL MEETS THURSDAY FOR THE LAST TIME PRIOR TO AN AUGUST HOLIDAY MANY PLAYERS EXPECT THE MEETING TO RESULT IN A CUT IN THE DISCOUNT RATE WHICH NOW IS AT 675 THESE EXPECTATIONS HELPED UNDERPIN THE DOLLAR AGAINST EUROPEAN CURRENCIES MONDAY TRADERS SAID COMMITTED BY THE ERM TO KEEP THEIR CURRENCIES IN LINE GERMANY'S EUROPEAN PARTNERS HAVEN'T BEEN ABLE TO LOWER RATES AS QUICKLY AS THEIR TROUBLED ECONOMIES MIGHT WARRANT FORCED INSTEAD TO FOLLOW THE GERMAN CENTRAL BANK'S CAUTIOUS POLICY OF EASING THE LONGER THE BUNDESBANK HOLDS BACK TRADERS NOTED THE MORE CURRENCIES COME UNDER PRESSURE FROM INVESTORS EXPECTING A DEVALUATION LAST WEEK'S TARGETS THE FRENCH FRANC AND DANISH KRONE HELD ON AGAINST THE MARK MONDAY AS SELLERS TURNED ON THE BELGIAN FRANC FOR A SECOND DAY THE BELGIAN CURRENCY HAS LONG BEEN CONSIDERED A MEMBER OF THE ERM'S HARD CORE BECAUSE OF ITS RELATIVELY STRONG ECONOMIC FUNDAMENTALS COMMITMENT BY BELGIUM THE BELGIAN NATIONAL BANK HAS EVEN COMMITTED ITSELF TO KEEPING THE BELGIAN FRANC IN A MUCH NARROWER BAND AGAINST THE MARK THAN REQUIRED BY THE ERM THE BELGIAN FRANC IS NORMALLY IMMUNE TO THIS SAID MR JOHNSON OF MONDAY'S SPECULATIVE SELLING BUT SELLERS PUSHED THE BELGIAN FRANC FROM ITS NARROW BAND DRAWING SWIFT RESPONSE FROM THE CENTRAL BANK THE BANK LIFTED SHORTTERM INTEREST RATES ACROSS THE BOARD FOR THE SECOND TRADING DAY IN A ROW AFTER BOOSTING INTEREST RATES FRIDAY THE BELGIAN NATIONAL BANK LIFTED ITS CENTRAL RATE FOR MONEY MARKET LENDING TO 850 ADDING 135 PERCENTAGE POINTS AND BOOSTED ITS EMERGENCY RATE TO 12 FROM 10 THE MOVES DID LITTLE TO BUOY THE FRANC HOWEVER LATE IN NEW YORK THE MARK WAS QUOTED AT 20710 BELGIAN FRANCS LITTLE CHANGED FROM 20712 FRANCS LATE FRIDAY IN NEW YORK MARC CHANDLER SENIOR MARKET STRATEGIST AT IDEA AN ANALYTIC SERVICE SAID THE PRESSURE ON THE BELGIAN FRANC REFLECTS INVESTORS' GROWING DOUBTS ABOUT WHETHER THE ERM CAN SURVIVE ERM TENSIONS ARE SYSTEMWIDE HE ADDED 9307270055 930727 BUSINESS BRIEF CIRRUS LOGIC INC FISCAL FIRSTQUARTER PROFIT INCREASED ON ONETIME GAINS CIRRUS LOGIC INC REPORTED NET INCOME FOR THE FIRST QUARTER ENDED JULY 3 OF 38 MILLION INCLUDING ONETIME GAINS TOTALING 101 MILLION THE MAKER OF COMPUTER CHIPS AND OTHER PRODUCTS SAID IN JUNE THAT IT EXPECTED AN OPERATING LOSS BECAUSE OF SLUGGISH DEMAND FOR CERTAIN HIGHMARGIN PRODUCTS BUT THE FREMONT CALIF COMPANY ADDED THAT IT WOULD BE PROFITABLE AS A RESULT OF THE GAINS 25 MILLION FROM THE SALE OF AN INVESTMENT AND 76 MILLION FROM AN ACCOUNTING CHANGE THE COMPANY'S NET WAS 15 CENTS A SHARE THAT WAS SIGNIFICANTLY BETTER THAN SOME ANALYSTS HAD ANTICIPATED MOST HAD FORECAST PERSHARE NET OF BETWEEN FIVE CENTS AND EIGHT CENTS SALES ROSE 47 TO 992 MILLION IN THE YEAREARLIER QUARTER THE COMPANY EARNED 34 MILLION OR 14 CENTS A SHARE THE ANNOUNCEMENT CAME AFTER THE MARKET CLOSED IN OVERTHECOUNTER TRADING YESTERDAY CIRRUS ROSE 125 TO 2025 9307270054 930727 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE CHILD'S PLAY PALTRY PAY SENDS TURNOVER SOARING AMONG DAYCARE PROFESSIONALS THE AVERAGE WAGE FOR PRESCHOOL TEACHERS IS 7 AN HOUR SALARIES PEAK AT 15000 EVEN FOR THOSE WITH ADVANCED DEGREES SAYS PATTY HNATIUK DIRECTOR OF CHILDCARE TRAINING PROGRAMS AT BOSTON'S WHEELOCK COLLEGE CITING LABOR DEPARTMENT FIGURES WORKING MOTHER MAGAZINE SAYS CHILDCARE WORKERS EARN 219 A WEEK LESS THAN WAITRESSES KITCHEN WORKERS AND HAIRDRESSERS LAQUETTA BRUMMETT OWNER OF INFANTS OF DUNWOODY A DAYCARE CENTER NORTH OF ATLANTA SAYS SHE CAN'T AFFORD HEALTH INSURANCE FOR HER STAFF SHE OFTEN HIRES CERTIFIED TEACHERS ONLY TO LOSE THEM AS SOON AS PUBLICSCHOOL JOBS WITH BENEFITS BECOME AVAILABLE NATIONWIDE TURNOVER RUNS 25 OR MORE A YEAR A TROUBLESOME PATTERN SINCE YOUNG CHILDREN NEED CONTINUITY FOR EMOTIONAL DEVELOPMENT PARENTS CAN'T AFFORD TO PAY TEACHERS CAN'T AFFORD TO STAY AND CHILDREN ARE IN JEOPARDY BECAUSE OF IT SAYS MS HNATIUK FORTYSOMETHINGS FACE GREATER JOB DISCRIMINATION IN EUROPE THAN HERE AGE DISCRIMINATION IS ILLEGAL IN THE US BUT EUROPEAN EMPLOYERS LEGALLY CAN AND OFTEN DO REFUSE TO CONSIDER JOB APPLICATIONS FROM OLDER PEOPLE REPORTS THE WYATT CO THE CONSULTING FIRM SAYS MANY EUROPEANS WHO LOSE JOBS AFTER AGE 45 CAN ONLY FIND SHORTTERM CONTRACTS OR TEMPORARY WORK A LAWSUIT RECENTLY FORCED THE BRITISH CIVIL SERVICE TO MODIFY ITS PRACTICE OF ONLY RECRUITING PEOPLE WHO ARE UNDER 30 THOUGH EMPLOYERS IN MOST EUROPEAN COUNTRIES ALSO CAN FORCE EMPLOYEES TO RETIRE WHEN THEY REACH THE NORMAL AGE OF ELIGIBILITY FOR PENSIONS BETWEEN 55 AND 67 DEPENDING ON THE COUNTRY BUT SOME COUNTRIES REQUIRE ADVANCE NOTICE FOR SUCH LAYOFFS AND OTHERS REQUIRE EXTENDED JOBLESS BENEFITS FOR WORKERS WHO DON'T HAVE PENSIONS OR SOME OTHER SOURCE OF RETIREMENT INCOME UNEMPLOYMENT BENEFITS COULD THEY BE USED TO FOSTER ENTREPRENEURS IN A MASSACHUSETTS EXPERIMENT CAREFULLY SCREENED JOBLESS WORKERS WERE EXCUSED FROM JOBSEARCH REQUIREMENTS AND ENROLLED IN A MINIMBA PROGRAM ON SETTING UP THEIR OWN BUSINESS MORE THAN HALF EITHER STARTED A BUSINESS OR FOUND NEW JOBS BEFORE COMPLETING THE 24WEEK COURSE SAVING THE STATE 1400 PER PARTICIPANT PAUL FARROW A DISPLACED EXECUTIVE LAUNCHED A FIRM MAKING KAYAKS FROM RECYCLED PLASTICS A SIMILAR WASHINGTON STATE PROGRAM PAID PARTICIPANTS SOME OF THEIR BENEFITS IN A LUMP SUM RATHER THAN WEEKLY IN TWO YEARS 450 NEW BUSINESSES WERE OPENED EMPLOYING 600 PEOPLE ONE PARTICIPANT BOUGHT THE BANKRUPT ELECTRONICS WHOLESALER THAT HAD EMPLOYED HIM ANOTHER STARTED A COFFEECART BUSINESS AND ONE WOMAN CONVERTED A SHIPBUILDING PLANT INTO AN ALUMINUM SIDING FACTORY WITH MANY PEOPLE PERMANENTLY DISPLACED REP RON WYDEN D ORE AND SEN HARRIS WOFFORD D PA PROPOSE LETTING ALL STATES START SELFEMPLOYMENT PROGRAMS UNEMPLOYMENT TAXES ROSE TO 210 PER EMPLOYEE LAST YEAR FROM 203 IN 1992 REPORTS POTOMAC MD CONSULTANT LAURDAN ASSOCIATES RHODE ISLAND LED THE NATION WITH 63320 IN FEDERAL AND STATE JOBLESS TAXES PER EMPLOYEE WHILE SOUTH DAKOTA'S 91 PER WORKER WAS LOWEST MANUFACTURING JOBS MAY BE LESS SCARCE THAN BELIEVED IN THE YEAR ENDED JUNE 1993 MANUFACTURING EMPLOYMENT FELL BY 300000 BAFFLING MANY ECONOMISTS BUT AUDREY FREEDMAN A NEW YORK ANALYST NOTES IN HER NEWSLETTER UNCONVENTIONAL WISDOM THAT EMPLOYMENT IN PERSONNEL SUPPLY SERVICES PRIMARILY TEMPORARYHELP FIRMS GREW BY 313000 THOUGH COUNTED AS SERVICE JOBS SOME 300000 OF THE NEW TEMPORARY PLACEMENTS WERE IN MANUFACTURING SHE SAYS DISABILITY DOCKET THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SAYS IT RECEIVED 11760 DISCRIMINATION COMPLAINTS UNDER THE AMERICANS WITH DISABILITIES ACT DURING THE LAW'S FIRST 11 MONTHS OR ABOUT 15 OF THE AGENCY'S CASELOAD ROUGHLY 20 OF THE CASES HAVE BEEN RESOLVED AND AGGRIEVED PERSONS HAVE COLLECTED OVER 11 MILLION EMPLOYERS SEEK NOVEL WAYS TO LIFT MORALE AND PRODUCTIVITY IN MARCH LIONEL TRAINS INC SENT A MARCHING BAND INTO ITS CHESTERFIELD TOWNSHIP MICH PLANT AT AN ENSUING PARTY EXCEPTIONAL EMPLOYEES WERE RECOGNIZED HERMAN MILLER INC A ZEELAND MICH FURNITURE MAKER GIVES THREE DAYS OFF AND 1000 TO SOME 50 OUTSTANDING EMPLOYEES SELECTED BY THEIR PEERS TWO OR THREE WORKERS CHOSEN BY BOSSES GET A WEEK OFF AND 4000 TRAVEL BONUSES GAIN POPULARITY SALES PEOPLE WHO REACH 107 OF THEIR ANNUAL GOAL AT GENRAD INC IN CONCORD MASS QUALIFY FOR A WEEKEND AT A RESORT WITH A GUEST THOSE WHO TOP THAT GOAL GET UP TO A WEEK'S VACATION AT A CHOICE OF DESTINATIONS A PRIZE WORTH AS MUCH AS 12000 AT MR COFFEE INC IN BEDFORD HEIGHTS OHIO STRONG PERFORMERS GET SURPRISE KICKS OF 100 OR 200 TOWERS PERRIN'S ROBERT GORE SAYS INCENTIVE PLANS ENABLE COMPANIES TO OFFER LOWER SALARY INCREASES AND AVOID PERMANENT COSTS BUT BE CAREFUL HE WARNS LOSERS MAY RESENT WINNERS THE CHECKOFF WHILE 98 OF EXECUTIVES SURVEYED BY HYATT HOTELS AND RESORTS SAY GOLF IS A GOOD WAY TO RELIEVE STRESS MORE THAN HALF HAVE THROWN OR BROKEN A CLUB AFTER MAKING A BAD SHOT ABOUT 12 OF THE EXECUTIVES SAY GOLF IS MORE IMPORTANT TO ME THAN SEX 9307270053 930727 NET AT AMERICAN EXPRESS JUMPED 34 IN QUARTER IMPROVING CARD BUSINESS STRONG BROKERAGE UNIT HELPED IN SECOND PERIOD BY STEVEN LIPIN AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO SAID SECONDQUARTER EARNINGS ROSE 34 DRIVEN BY AN IMPROVING CHARGECARD BUSINESS AND STRONG RESULTS AT ITS BROKERAGE AND MONEYMANAGEMENT UNITS THE COMPANY'S NET INCOME OF 416 MILLION OR 83 CENTS A SHARE WAS UP SHARPLY FROM THE YEAREARLIER RESULTS OF 310 MILLION OR 63 CENTS A SHARE AND BETTER THAN WALL STREET'S EXPECTATIONS OF AROUND 62 CENTS A SHARE IT LOOKED LIKE A REAL QUALITY QUARTER ACROSS THE BOARD SAID THOMAS FACCIOLA AN ANALYST AT SG WARBURG & CO THIS GOES A LONG WAY IN CONFIRMING THAT THE COMPANY'S TURNAROUND IS ON TRACK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AMERICAN EXPRESS SHARES JUMPED 1625 TO 3425 THE COMPANY'S FLAGSHIP TRAVEL RELATED SERVICES DIVISION REPORTED AN 89 JUMP IN PROFIT TO 234 MILLION AIDED BY INCREASED CARDHOLDER SPENDING AND LOWER CHARGES FOR BAD DEBTS WHILE COMING OFF A LOW BASE OF EARNINGS LAST YEAR TRS BEAT THE FIRSTQUARTER RESULTS OF 211 MILLION TOTAL BILLINGS FROM THE CARD BASE ROSE TO 31 BILLION FROM 29 BILLION IN THE YEAREARLIER QUARTER AND 282 BILLION IN THE FIRST QUARTER EXPENSES WERE DOWN 97 FROM A YEAR EARLIER REFLECTING THE COMPANY'S EFFORTS TO CUT 1 BILLION OUT OF ITS EXPENSE BASE THE CHANGES CHAIRMAN HARVEY GOLUB ARE PUTTING IN PLACE ARE WORKING SAID JOHN KEEFE AN INDEPENDENT ANALYST ALSO HELPING THE COMPANY WERE A SHARP DROP IN INTEREST EXPENSE AND A FALLOFF IN THE PROVISION FOR BAD DEBTS INTEREST EXPENSE FELL 16 TO 198 MILLION WHILE THE PROVISION FOR CREDIT LOSSES SLID 34 FROM A YEAR EARLIER TO 394 MILLION STILL THE PROVISION WAS UNCHANGED FROM THE FIRST QUARTER AS A RESULT OF AN INCREASE IN TOTAL BILLINGS ON THE FLIP SIDE TRS REVENUE DECLINED 32 TO 21 BILLION HURT BY A REDUCTION IN FEES CHARGED TO MERCHANTS AND BY FEWER CARDS OUTSTANDING UNDER COMPETITIVE PRESSURE THE COMPANY HAS BEEN LOWERING THE DISCOUNT FEE CHARGED TO MERCHANTS FOR USE OF THE CARD TOTAL CARDS IN FORCE CONTINUED TO SLIDE FALLING TO 34 MILLION FROM 343 MILLION IN THE FIRST QUARTER AND 356 MILLION IN THE YEAREARLIER PERIOD THE FIGURES SHOW THAT CARDHOLDERS ARE SPENDING MORE PER CARD ONE OF THE COMPANY'S GOALS IN ITS PLAN TO IMPROVE ITS FINANCIAL RESULTS PERCARD SPENDING WAS UP 11 WORLDWIDE FOR THE SECOND QUARTER AMERICAN EXPRESS'S SHEARSON LEHMAN BROKERAGE UNIT IN ITS LAST QUARTER OF OPERATION REPORTED A LEAP IN OPERATING PROFIT TO 121 MILLION A YEAR AGO SHEARSON REPORTED AN OPERATING PROFIT OF 4 MILLION REFLECTING AN 84 MILLION CHARGE RELATED TO A LOAN MADE TO PRIME COMPUTER INC AMERICAN EXPRESS DECLINED TO ISSUE REVENUE FIGURES FOR ITS SHEARSON RETAIL BROKERAGE NETWORK AS OF NEXT MONDAY LEHMAN BROTHERS HOLDINGS WILL OPERATE SEPARATELY FROM SHEARSON WHICH IS MERGING WITH PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO BROKERAGE UNIT AMERICAN EXPRESS BROKE OUT LEHMAN'S NET INCOME SEPARATELY FROM SHEARSON'S SHOWING THAT LEHMAN GENERATED THE LION'S SHARE OF THE QUARTER'S PROFIT OR 95 MILLION OF THE 121 MILLION TOTAL LEHMAN'S REVENUE INCREASED 7 PARTLY FROM STRENGTH IN THE COMPANY'S DERIVATIVESTRADING BUSINESS AND FOREIGNEXCHANGE ACTIVITIES INVESTMENT BANKING INCOME OF 208 MILLION HOWEVER SLID 15 FROM THE YEAREARLIER QUARTER SHEARSON'S 37 GAIN IN PROFIT AFTER ADJUSTING FOR THE 1992 CHARGE WAS IN LINE WITH THE BROKERAGE INDUSTRY AS A WHOLE IT HAS BEEN ROUTINE FOR SECONDQUARTER RESULTS AT THE LARGER BROKERAGE FIRMS TO COME IN AT 30 TO 60 ABOVE YEAREARLIER RESULTS THE COMPANY'S MONEYMANAGEMENT ARM IDS FINANCIAL SERVICES ALSO HAD A STRONG QUARTER PROFIT ROSE 23 TO 90 MILLION ON AN INCREASE IN MANAGEMENT FEES AND INVESTMENT INCOME THE AMERICAN EXPRESS BANK EARNED 20 MILLION COMPARED WITH 19 MILLION IN THE YEAREARLIER PERIOD 9307270052 930727 BUSINESS BRIEFS DSC COMMUNICATIONS CORP SAID MOTOROLA INC WILL PURCHASE SMALL AND MIDSIZE CELLULAR SWITCHING EQUIPMENT EXPANDING A PREVIOUSLY ANNOUNCED FIVEYEAR AGREEMENT ON LARGE SWITCHES TERMS WEREN'T DISCLOSED ALEXANDER ENERGY CORP WILL REPORT A GAIN OF 11 MILLION OR 16 CENTS A SHARE FOR THE SECOND QUARTER FROM THE SETTLEMENT OF CERTAIN LITIGATION AMERICAN NATIONAL PETROLEUM CO'S SHAREHOLDERS APPROVED AN AGREEMENT FOR THE COMPANY TO BECOME A SUBSIDIARY OF PATRICK PETROLEUM CO IN A TRANSACTION VALUED AT 35 MILLION WELLSFORD RESIDENTIAL PROPERTY TRUST ACQUIRED 1107 APARTMENTS IN LAS VEGAS DENVER AND FORT COLLINS COLO FOR ABOUT 441 MILLION RMI TITANIUM CO ANNOUNCED A 5 PRICE INCREASE ON ITS TITANIUM STRIP AND PURE TITANIUM PLATE ORDERS SCHEDULED FOR DELIVERY THROUGH DEC 31 9307270051 930727 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES ACER JOINS IN INTRODUCING IBM PORTABLE WORKSTATION INTERNATIONAL BUSINESS MACHINES CORP AND THE TAIWANESE HIGHTECH COMPANY ACER GROUP SAID THEY TEAMED UP TO BRING OUT THE FIRST PORTABLE VERSION OF IBM'S RS/6000 WORKSTATION THE MACHINE USES IBM TECHNOLOGY PACKAGED BY ACER INTO A PORTABLE MACHINE WEIGHING 17 POUNDS WORKSTATIONS WIDELY USED BY SCIENTISTS AND ENGINEERS AREN'T NORMALLY SOLD IN PORTABLE VERSIONS THE TWO COMPANIES ORIGINALLY COLLABORATED ON THE PRODUCT TO BID ON A FEDERAL BUREAU OF LAND MANAGEMENT CONTRACT FOR 600 TO 800 MACHINES THEY HAVE BEGUN A BROADER PUSH TO MARKET THE 13495 PRODUCT WHICH ACER IS MANUFACTURING THE WORKSTATION CALLED THE POWERPORTABLE FEATURES AN IBM VERSION OF THE POPULAR UNIX OPERATING SYSTEM AND A REMOVABLE HARD DRIVE WITH 457 OR 1200 MEGABYTES 9307270050 930727 HEARD ON THE STREET IN IPOS SOME DATA SEEM TO BE OVERLOOKED BY ISSUERS AS IN CASE OF SANTA CRUZ OPERATION BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE CURRENT RUSH TO BRING INITIAL PUBLIC OFFERINGS TO MARKET SOME INFORMATION SEEMS TO BE OVERLOOKED BY ISSUERS CONSIDER THE CASE OF SANTA CRUZ OPERATION A SMALL CALIFORNIA SOFTWARE PROVIDER WHOSE CHAIRMAN DIED OF A LENGTHY BUT UNDISCLOSED ILLNESS JUST SIX WEEKS AFTER HIS COMPANY WENT PUBLIC NOW 15OWNED BY MICROSOFT SANTA CRUZ OPERATION LAUNCHED ITS IPO IN MAY AT 12 1/2 THE STOCK FELL STEADILY THEN ON JULY 14 THE COMPANY ANNOUNCED THAT 49YEAROLD CHAIRMAN JAMES HARRIS HAD DIED THE PREVIOUS WEEKEND OF A CHRONIC ILLNESS THE SHARES HAVE SLUMPED A FURTHER 38 SINCE THEN LOSING A TOTAL OF 59 SINCE THE OFFERING TO CLOSE AT 5 1/8 YESTERDAY MR HARRIS WAS SICK FOR SOME TIME SAYS BILL SCHWEIZER A FORMER TAX ADVISER TO MR HARRIS HE MAY HAVE BEEN CRITICALLY ILL EVEN AS WALL STREET UNDERWRITER GOLDMAN SACHS WAS ROUNDING UP BUYERS FOR THE 75 MILLION IPO MR HARRIS SAYS OF THE EXECUTIVE HE WAS TOLD BY HIS DOCTOR TO GET HIS PERSONAL AFFAIRS IN ORDER NEITHER THE SANTA CRUZ CALIF COMPANY NOR LEAD UNDERWRITER GOLDMAN SACHS SAID ANYTHING ABOUT THE CHAIRMAN'S ILL HEALTH IN THE PREOFFERING PROSPECTUS THE PROSPECTUS CONTAINS ONLY THE STANDARD KEY EMPLOYEES WARNING WHICH STATES THAT THE LOSS OF ANY TOP EXECUTIVE COULD ADVERSELY AFFECT THE COMPANY'S BUSINESS THE BIOGRAPHICAL SECTION ON MR HARRIS CONTAINS STANDARD MATERIAL SUCH AS HIS BEING A FORMER MICROSOFT EXECUTIVE OF COURSE THE STOCK'S POSTIPO SLUMP CAN'T BE BLAMED SOLELY ON MR HARRIS'S DEATH A DISAPPOINTING EARNINGS REPORT A DAY AFTER THE ANNOUNCEMENT CERTAINLY CONTRIBUTED ESPECIALLY THE COMPANY'S STATEMENT THAT IT HAD EXPERIENCED DELAYS IN SIGNING SEVERAL CONTRACTS WHY DIDN'T THE COMPANY ALERT SHAREHOLDERS TO MR HARRIS'S ILLNESS SANTA CRUZ OPERATION SAYS IT WAS DEEMED NOT TO BE MATERIAL BECAUSE MR HARRIS HAD NO DAYTODAY RESPONSIBILITIES OR INVOLVEMENT IN THE COMPANY A SPOKESMAN FOR MICROSOFT DECLINED TO COMMENT BECAUSE IT'S AN INTERNAL SCO MATTER AT GOLDMAN SACHS A SPOKESMAN FOR THE BIG INVESTMENT BANK SAYS THAT AFTER EXTENSIVE DISCUSSIONS IT CONCLUDED A DISCLOSURE WAS UNNECESSARY BECAUSE MR HARRIS WASN'T CRITICAL TO THE COMPANY'S OPERATIONS AND IT WAS UNCLEAR EXACTLY HOW SICK HE WAS THE SPOKESMAN CONCEDES IT WAS REASONABLY CLEAR JIM WASN'T IN TERRIFIC HEALTH MONTHS BEFORE HIS DEATH MR HARRIS HAD INSTALLED A NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER LARS H TURNDAL WHO WAS NAMED ACTING CHAIRMAN AFTER MR HARRIS'S DEATH GOLDMAN ALSO NOTES THAT THIS STOCK IS ONE OF 10 HIGHTECH IPOS THE FIRM HAS UNDERWRITTEN DURING THE PAST THREE YEARS WHICH HAVE AN AVERAGE GAIN DESPITE SCO'S TUMBLE OF 134 ONE WALL STREET LAWYER WHO ASKED FOR ANONYMITY BECAUSE HIS FIRM WORKS WITH UNDERWRITERS SAYS HE HAS NEVER SEEN QUITE SUCH AN ISSUE COME UP WITH AN IPO IF HE HAD BEEN CEO THAT WOULD BE PRETTY TROUBLING SAYS THE LAWYER EVEN IN THIS CASE I WOULD CERTAINLY HAVE THOUGHT ABOUT DISCLOSING THE ILLNESS IN WASHINGTON A SPOKESMAN FOR THE SECURITIES AND EXCHANGE COMMISSION SAYS HE CAN'T COMMENT SPECIFICALLY ON THE SCO OFFERING BUT IN GENERAL THE SECURITIES LAWS REQUIRE ISSUERS TO DISCLOSE ALL MATERIAL INFORMATION WHETHER A COMPANY HAS TO DISCLOSE A SPECIFIC HEALTHRELATED DEVELOPMENT IS AN ISSUE THAT HAS COME UP BEFORE MAINLY WITH ALREADY PUBLIC COMPANIES HE SAYS AND IT'S A JUDGMENT CALL THERE ARE OTHER THINGS INVESTORS SHOULD KNOW ABOUT SANTA CRUZ OPERATION A BIG PLAYER IN THE MARKET FOR THE POPULAR UNIX SOFTWARE FAVORED BY SCIENTISTS AND OTHER HEAVY NUMBERCRUNCHERS COMPANY FOUNDER LARRY MICHELS THE FORMER PRESIDENT AND CEO RESIGNED IN DECEMBER AFTER FOUR WOMEN THREE OF WHOM NO LONGER WORK FOR THE COMPANY FILED A SEXUALHARASSMENT AND DISCRIMINATION LAWSUIT AGAINST HIM AND SCOIN STATE COURT IN SANTA CRUZ THE SUIT WAS RECENTLY SETTLED OUT OF COURT MR MICHELS WAS AWARDED A ONEYEAR 200000 CONSULTANT'S JOB AFTER THE RESIGNATION ACCORDING TO THE PROSPECTUS HE ALSO MAINTAINED AN 114 STAKE IN THE COMPANY AFTER THE IPO NOW FOUR OTHER WOMEN HAVE FILED A NEW BREACHOFCONTRACT LAWSUIT PENDING IN FEDERAL COURT IN SAN JOSE CALIF THE LAWYER FOR ALL EIGHT WOMEN JENNIFER DROBAC SUGGESTS THAT THE LATE MR HARRIS HAD BEEN DOING A GOOD JOB IN SETTLING THE COMPANY'S EMPLOYEE PROBLEMS WITH HIS DEATH IT'S UNCLEAR HOW THE COMPANY WILL WEATHER SUCH LITIGATION I WAS IN ALL FAIRNESS IMPRESSED BY MR HARRIS'S EFFORTS SHE SAYS BUT IF MR HARRIS WAS ILL WAS HE IN CHARGE AT THE END IN MAKING THE DECISIONS THAT HAD A SIGNIFICANT IMPACT ON THE COMPANY IN THE PROSPECTUS THE COMPANY REFERS TO ONE LAWSUIT AND SEVERAL PENDING CLAIMS RELATED TO EMPLOYEE MATTERS BUT SAYS IT DOESN'T EXPECT A MATERIAL IMPACT ON OPERATIONS HEARD 9307270049 930727 BUSINESS BRIEF MIDWEST GRAIN PRODUCTS INC FLOOD SHUTS KANSAS PLANT 100 WORKERS ARE LAID OFF MISSOURI RIVER FLOOD WATERS FORCED MIDWEST GRAIN PRODUCTS INC TO SHUT DOWN OPERATIONS SUNDAY AT ITS ATCHISON KAN PLANT AND LAY OFF HALF OF THE 200 WORKERS THERE THE COMPANY'S OTHER PLANT IN PEKIN ILL CONTINUES TO OPERATE AT NORMAL CAPACITIES BUT SHIPPING DISRUPTIONS HAVE POSED CHALLENGES AT BOTH PLANTS LADD SEABERG CHIEF EXECUTIVE OFFICER AND PRESIDENT SAID THE PRODUCER OF WHEAT AND GRAIN PRODUCTS SAID FLOODING HAD INUNDATED THE KANSAS PLANT'S PUMPING STATIONS FORCING THE SHUTDOWN THE RIVER BROKE THROUGH A LEVEE NORTH OF THE PUMPING STATION IN NEARBY WINTHROP AND WEEKEND RAINFALL ADDED TO THE WATER SURGE THE ATCHISON PLANT ITSELF CONTINUES TO BE SAFE FROM HIGH WATERS THE COMPANY SAID 9307270048 930727 BUSINESS BRIEF MCGAW INC VETERANS DEPARTMENT REJECTS HOSPITAL SUPPLIER'S JOB BID MCGAW INC SAID ITS MAY 27 LOW BID FOR A FIVEYEAR 129 MILLION DEPARTMENT OF VETERANS AFFAIRS CONTRACT HAS BEEN REJECTED AS NONRESPONSIVE BECAUSE THE VA SAYS THE BID'S DECLINING PRICE STRUCTURE DOES NOT MATCH ITS COST STRUCTURE AS THE GOVERNMENT REQUIRES THE COMPANY BELIEVES THE BID WAS REJECTED BECAUSE VA OFFICIALS FEARED THAT THE HIGHEST VOLUME OF INTRAVENOUS SOLUTIONS AND INTRAVENOUS SETS WOULD BE REQUIRED IN THE CONTRACT'S EARLIEST YEARS WHEN MCGAW PRICES ALSO ARE HIGHEST THIS COULD MAKE THE AGREEMENT MORE EXPENSIVE TO THE VA THAN IF COSTS WERE EVENLY DISTRIBUTED OVER THE FIVE YEARS MCGAW AN IRVINE CALIF SUPPLIER OF INTRAVENOUS THERAPY AND SERVICES TO HOSPITALS AND HEALTHCARE PROVIDERS SAID IT WOULD APPEAL THE DECISION WITHIN 10 DAYS THE VA THEN HAS 30 DAYS TO RULE ON IT MCGAW'S CONTRACT WITH THE VA EXPIRES ON SEPT 30 IF MCGAW LOSES ITS APPEAL IT SAYS ITS 1993 EARNINGS WILL BE REDUCED BY THE AMOUNT OF THE CONTRACT OR BETWEEN FOUR AND FIVE CENTS A SHARE THE COMPANY HALTED TRADING OF ITS STOCK WHEN MARKETS OPENED MONDAY MORNING TRADING RESUMED AT 1237 PM EST ON NEWS OF THE BID REJECTION THE COMPANY'S STOCK FELL 2 TO 925 IN LATE OVERTHECOUNTER TRADING 9307270047 930727 BUSINESS BRIEF ZEOS INTERNATIONAL LTD QUARTERLY LOSS IS NARROWED ON SALES RISE OVERHEAD FALL ZEOS INTERNATIONAL LTD SAID ITS LOSSES NARROWED IN THE SECOND QUARTER BECAUSE OF INCREASED SALES AND LOWER OVERHEAD THE MINNEAPOLIS PERSONALCOMPUTER MAKER BATTERED BY A FIERCELY COMPETITIVE MARKETPLACE POSTED A LOSS FOR THE QUARTER OF 34 MILLION OR 40 CENTS A SHARE IN THE SECOND QUARTER OF 1992 ZEOS HAD A LOSS OF 11 MILLION OR 129 A SHARE SALES ROSE TO 527 MILLION FROM 487 MILLION GREG HERRICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID OVERHEAD HAD BEEN REDUCED 36 MILLION OR 30 FROM THE SAME PERIOD LAST YEAR STILL MR HERRICK SAID OUR FINANCIAL RESULTS LIKE THOSE OF MANY OF OUR COMPETITORS CONTINUE TO BE AFFECTED BY THE INTENSE COMPETITION WITHIN THE PC COMPUTER MARKETPLACE 9307270046 930727 BUSINESS BRIEF PILGRIM'S PRIDE CORP POULTRY PRODUCER REPORTS EARNINGS FOR THIRD QUARTER PILGRIM'S PRIDE CORP CONTINUED ITS TURNAROUND FROM A DISMAL 1992 IN THE THIRD QUARTER BUT THE POULTRY PRODUCER WARNED THAT FEEDINGREDIENT PRICES ARE RISING BECAUSE OF MIDWEST FLOODING LOWER COSTS COUPLED WITH HIGHER DEMAND AND INCREASED PRICES FOR ITS PRODUCTS HELPED THE PITTSBURG TEXAS COMPANY TO NET INCOME OF 24 MILLION OR NINE CENTS A SHARE AFTER A CHARGE OF 12 MILLION OR FIVE CENTS A SHARE FOR EARLY RETIREMENT OF DEBT REVENUE ROSE 72 IN THE QUARTER ENDED JULY 3 TO 2206 MILLION FROM 2058 MILLION A YEAR EARLIER PILGRIM'S PRIDE HAD A LOSS OF 42 MILLION OR 19 CENTS A SHARE IN THE FIRST NINE MONTHS NET WAS 17 MILLION OR 62 CENTS A SHARE ON SALES OF 6688 MILLION A YEAR EARLIER PILGRIM'S PRIDE HAD A LOSS OF 171 MILLION OR 76 CENTS A SHARE ON SALES OF 6069 MILLION 9307270045 930727 INTERNATIONAL BRIEF MOULINEX SA FIRSTHALF SALES FOR 1993 WERE 38 BELOW LAST YEAR MOULINEX SA THE FRENCH HOUSEHOLD ELECTRICAL APPLIANCE MANUFACTURER SAID ITS CONSOLIDATED SALES FOR THE FIRST SIX MONTHS OF 1993 WERE 38 BELOW THOSE OF A YEAR EARLIER AT 355 BILLION FRANCS 6043 MILLION AND SAID THE CURRENCY DEPRECIATIONS IN ITALY SPAIN AND THE UK WERE LARGELY TO BLAME THE COMPANY SAID THAT THE THREE COUNTRIES WHICH COMPRISE 20 OF GROUP SALES ARE EXPERIENCING SEVERE ECONOMIC DIFFICULTIES THE FIRSTHALF SALES PERFORMANCE WAS IN LINE WITH EXPECTATIONS MOULINEX SAID BUT IT POINTED OUT THAT SALES IN ITS MAJOR MARKETS HELD UP WELL IN THE FIRST SIX MONTHS WITH GAINS OF 14 REGISTERED IN FRANCE AND 10 IN THE US IN GERMANY SALES WERE UP 2 AND IN EASTERN EUROPE THEY SURGED 31 ADMITTEDLY FROM A SMALL BASE MOULINEX SAID THE CONSTANT LEVEL OF ACTIVITY AT THE END OF JUNE SUGGESTS THAT NEW LINES OF PRODUCTS ARE BEING WELLRECEIVED BY CONSUMERS 9307270044 930727 LEISURE & ARTS BOOKSHELF READER'S DIGEST UNMASKED BY JOE QUEENAN IN NOVEMBER 1918 WHILE RECUPERATING IN A FRENCH HOSPITAL FROM LIFETHREATENING WOUNDS SUSTAINED DURING THE WANING DAYS OF WORLD WAR I 29YEAROLD DEWITT WALLACE CONCEIVED THE BRILLIANT IDEA OF HIRING A BUNCH OF WORD ASSASSINS TO CONDENSE HELPFUL ENGAGING ARTICLES FROM TOP AMERICAN MAGAZINES AND REPACKAGE THEM INTO A USERFRIENDLY ANTHOLOGY CALLED READER'S DIGEST SEVENTYFIVE YEARS LATER JOHN HEIDENRY HAS WRITTEN AN ACIDULOUS INTERESTING STUDY OF WALLACE AND HIS CURIOUS PUBLISHING EMPIRE BUT THE BOOK HAPPENS TO BE 640 PAGES LONG AND 'ROUND ABOUT PAGE 303 THE READER KIND OF WISHES THAT WALLACE AND HIS LEGIONS OF WORD ASSASSINS WERE STILL AROUND TO CUT THIS BABY DOWN TO SIZE THEIRS WAS THE KINGDOM THE UNCONDENSED STORY OF THE READER'S DIGEST AND ITS FOUNDERS DEWITT AND LILA ACHESON WALLACE NORTON 2995 IS NOT A NICE BOOK BRIMMING WITH DETAILS ABOUT THE WALLACES' ANTISEMITISM AFFECTION FOR NAZIS FASCISTS AND FALANGISTS AND GENERALLY REACTIONARY POLITICAL ATTITUDES THIS OBDURATELY PARTISAN LEFTWING BOOK ALSO ACCUSES READER'S DIGEST OF BEDDING DOWN WITH THE CENTRAL INTELLIGENCE AGENCY FOR DECADES MR HEIDENRY CHARGES THE RELATIONSHIP EXTENDED BEYOND THE PACKAGING OF AGENCY PROPAGANDA TO ACTUAL INTELLIGENCE GATHERING IN PLACES SUCH AS CHILE THE AUTHOR FURTHER EXCORIATES THE WALLACES FOR DUBIOUS BUSINESS PRACTICES AND HYPOCRITICALLY ESPOUSING MIDDLECLASS VALUES WHILE FLOUTING THEM IN THEIR PRIVATE LIVES BUT AT NO POINT DOES HE EVER SUGGEST THAT THE WALLACES WERE ANYTHING LESS THAN GENIUSES AS ENTREPRENEURS FOR A MAN WHO FOUNDED A PUBLISHING EMPIRE THAT REEKED OF MIDDLEOFTHEROAD STAYATHOME VALUES DEWITT WALLACE CERTAINLY ENJOYED A BOHEMIAN YOUTH THE SON OF AN IMPECUNIOUS BUT VIRILE CLASSICS PROFESSOR AND A NEUROTIC MOTHER WHO HAD MEMORIZED SIR WALTER SCOTT'S THE LADY OF THE LAKE WHEN PROVOKED SHE WOULD RECITE IT TO HER HUSBAND WALLACE GOT KICKED OUT OF THREE SCHOOLS BY THE AGE OF 20 BEFORE HIS EPIPHANY IN THE FRENCH HOSPITAL BED HE'D SPENT A DECADE DRIFTING FROM ONE ODD JOB TO THE NEXT WORKING AS BANK TELLER DOORTODOOR SALESMAN AND SHOP CLERK FROM THE START WALLACE BASED HIS STORYSELECTION DECISIONS ON THREE QUESTIONS IS IT QUOTABLE IS IT APPLICABLE IS IT OF LASTING INTEREST AFTER A ROCKY START WALLACE WATCHED HIS PUBLICATION EXPLODE TO SUCH ENORMOUS LEVELS OF POPULARITY THAT ULTIMATELY ONLY THE BIBLE WOULD SURPASS IT IN GLOBAL READERSHIP THE DIGEST OF COURSE HAS ALWAYS BEEN CONSIDERED A JOKE BY INTELLECTUALS WITH ITS CHEERFUL MIXTURE OF HORATIO ALGER SUCCESS STORIES CRACKPOT MEDICAL THEORIES THE ONEDAY CURE FOR SYPHILIS GOODNATURED RIBALDRY AND OLDFASHIONED XENOPHOBIA IT REMAINED RESOLUTELY HOKEY THROUGHOUT MOST OF ITS HISTORY ONLY MODESTLY TAMPERING WITH THIS FORMULA IN THE PAST 20 YEARS AS IT HAS VALIANTLY ATTEMPTED TO BECOME MORE RELEVANT AND RESPECTED YET MR HEIDENRY INSISTS THAT THE DIGEST HAS ALWAYS BEEN A SCHIZOID PUBLICATION FOR EXAMPLE ALTHOUGH IT HAS ALWAYS HAD A LARGELY FEMALE READERSHIP THROUGHOUT MOST OF ITS EARLY HISTORY IT PRINTED REAMS OF OFFCOLOR MATERIAL GEARED TOWARD MEN ALTHOUGH THE DIGEST HAS LONG BEEN SYNONYMOUS WITH PROTESTANT FAMILY VALUES THE WALLACES THEMSELVES WERE EARLY SUPPORTERS OF MARGARET SANGER AND PLANNED PARENTHOOD AND ALTHOUGH THE DIGEST WAS THE FIRST AMERICAN PUBLICATION TO REPORT IN DETAIL HITLER'S GENOCIDAL CRIMES AGAINST THE JEWS THROUGHOUT MUCH OF ITS HISTORY THE PUBLICATION DISPLAYED A BUOYANT ANTISEMITISM AND CHEERFULLY PRINTED MANY PRONAZI ARTICLES IN THE DAYS LEADING UP TO WORLD WAR II THE NAZIS USED TO READ DIGEST EXCERPTS OVER THE AIR AND GOEBBELS WAS A FAN ALTHOUGH THE DIGEST HAS A LARGE CATHOLIC READERSHIP LILA WALLACE DISLIKED CATHOLICS AND THE MAGAZINE WENT OUT OF ITS WAY TO MAKE THINGS HARD FOR JOHN KENNEDY BASICALLY IT HAS ALWAYS BEEN AN ECLECTIC MIXTURE OF POPULISM NATIVISM AND REPUBLICANISM MAKING IT THE VOICE OF THE INCOHERENTLY CONSERVATIVE FOR THE MOST PART MR HEIDENRY IS SIMPLY CONTEMPTUOUS OF WALLACE AND HIS EMPIRE DISMISSING THE DIGEST AS A HAVEN FOR CONSERVATIVE HACKS HOWEVER THERE ARE OCCASIONS WHEN HE BACKS OFF HE HONESTLY BELIEVES THE MAGAZINE GOT A BAD RAP FROM BOTH LIBERALS AND CONSERVATIVES WHEN IT PUBLISHED A CONDENSED VERSION OF THE BIBLE IN 1982 DESPITE ALL THE JOKES ABOUT PARING DOWN THE NOAH STORY TO AN OLD MAN IN A RUBBER RAFT WITH TWO WOMBATS AND REDUCING THE TEN COMMANDMENTS TO FIVE MR HEIDENRY FINDS THE FINISHED PRODUCT RATHER GOOD WHAT MR HEIDENRY DOES NOT DO IS GIVE THE DIGEST PARTICULARLY ITS BOOK CLUB ENOUGH CREDIT FOR INTRODUCING MILLIONS OF ORDINARY AMERICANS TO THE PLEASURES OF READING ITS ONE DEMONSTRABLE CONTRIBUTION TO THIS CIVILIZATION REGARDLESS OF THE MUDDLING QUALITY OF ITS EDITORIAL PRODUCT THEIRS WAS THE KINGDOM IS AN IMPRESSIVELY DETAILED BOOK BUT PLOWING THROUGH HUNDREDS OF PAGES ABOUT A PUBLISHING EMPIRE WITH EMPLOYEES WHO SUFFER FROM A JUSTIFIED MASS INFERIORITY COMPLEX MAKES ONE WISH THAT ONE OF THEM HAD BEEN GIVEN THE TASK OF EDITING A CONDENSED VERSION 9307270043 930727 TECHNOLOGY BRIEF AMERICAN TELEPHONE & TELEGRAPH SERVICES OFFERED TO EASE CALLS VIA CELLULAR PHONES ON TRIPS AMERICAN TELEPHONE & TELEGRAPH CO IS OFFERING SERVICES TO CELLULAR CARRIERS IN THE US AND CANADA ALLOWING CELLULAR PHONE USERS TO MAKE AND RECEIVE CALLS MORE EASILY WHILE TRAVELING CURRENTLY CELLULAR USERS MUST PUNCH LONG CODES OR MAKE ARRANGEMENTS WITH LOCAL CARRIERS TO MAKE CALLS FROM OUTSIDE OF THEIR HOME TERRITORIES AT&T'S SERVICE WILL ALLOW CELLULAR SWITCHING SYSTEMS MADE BY VARIOUS MANUFACTURERS TO COMMUNICATE WITH EACH OTHER THIS WILL ELIMINATE THE NEED FOR LONG CODES OR PRIOR ARRANGEMENTS A PROCESS KNOWN AS SEAMLESS ROAMING AN AT&T SPOKESMAN SAID THE FIRST OF THE SERVICES OFFERED AS A FOURMONTH MARKET TRIAL WILL BE PROVIDED BY NYNEX CORP'S NYNEX MOBILE COMMUNICATIONS UNIT SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP'S SNET CELLULAR UNIT AND TELEPHONE & DATA SYSTEMS INC'S UNIT US CELLULAR CORP THE TRIAL IS EXPECTED TO BEGIN IN EARLY FALL AT&T IS A MAJOR TELECOMMUNICATIONS CONCERN 9307270042 930727 SHORT INTEREST IN OTC STOCKS HITS NEW HIGH RECORD IS SIXTH IN A ROW TELECOMMUNICATIONS DELL ARE AT TOP OF LIST BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST IN THE OVERTHECOUNTER STOCK MARKET SET A RECORD FOR THE SIXTH CONSECUTIVE MONTH CLIMBING ALMOST 4 TO 5584 MILLION SHARES IN MIDJULY ON THE NASDAQ NATIONAL MARKET SYSTEM WHERE MOST OF THE BIGGEST OTC ISSUES TRADE SHORT INTEREST INCREASED 46 TO 5296 MILLION SHARES FROM JUNE'S 5062 MILLION JULY SAW A SIGNIFICANT DROP IN SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET SHORT INTEREST IN THESE STOCKS FELL TO 28856593 SHARES FROM 30861417 SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT IN TIME THIS MONTH'S FIGURES REPRESENT THOSE SALES REPORTED AS OF JULY 8 AND SETTLED AS OF JULY 15 THE NATIONAL MARKET SYSTEM'S SHORT INTEREST RATIO AS OF MIDJULY ROSE TO 272 FROM 239 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS WAS FLAT AT 069 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS AMONG COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS CLASS A SHARES OF TELECOMMUNICATIONS INC ROSE 12 TO ALMOST 99 MILLION SHARES DELL COMPUTER CORP EDGED UP 09 TO 77 MILLION AND MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP ROSE 61 TO 62 MILLION CLASS A SHARES OF FOOD LION INC JUMPED 76 TO 57 MILLION SHARES THE COMPANY SAID IT PLANS TO OPEN 100 STORES THIS YEAR AFTER OPENING 131 STORES LAST YEAR FOOD LION SCALED BACK ITS PLANS TO OPEN A SIMILAR NUMBER THIS YEAR AFTER SALES FELL FOLLOWING AN INVESTIGATIVE TV REPORT ALLEGING THE CHAIN'S STORES SOMETIMES SOLD OUTOFDATE MEAT AND LEFT FOODHANDLING AREAS UNCLEAN THE SHORT INTEREST POSITION FOR COSTCO WHOLESALE CORP NEARLY DOUBLED TO 44 MILLION SHARES IN JUNE THE COMPANY SAID IT HAD A DEFINITIVE ACCORD TO MERGE WITH PRICE CO AND REPORTED FISCAL THIRDQUARTER EARNINGS BELOW ANALYSTS' CONSENSUS ESTIMATES AND BELOW EARNINGS REPORTED IN THE 1992 THIRD QUARTER SNAPPLE BEVERAGE CO'S SHORT INTEREST POSITION FELL 37 TO 39 MILLION SHARES IN THE PAST TWO WEEKS THE STOCK HAS RALLIED FROM 3725 TO CLOSE AT 45375 YESTERDAY WHICH COULD HAVE PROMPTED SHORT SELLERS TO CLOSE THEIR POSITIONS THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDJULY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDJUNE SEE ACCOMPANYING TABLES JULY 27 1993 9307270041 930727 DOW JONES INDUSTRY GROUPS NEW YORK TWO CHANGES ARE BEING MADE IN THE DOW JONES INDUSTRY GROUPS EFFECTIVE TODAY AS A RESULT OF PITTSTON CO DIVIDING ITS SHARES INTO TWO CLASSES OF COMMON STOCK PITTSTON SERVICES GROUP STOCK WILL BE ADDED TO THE AIR FREIGHT INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX PITTSTON MINERALS GROUP STOCK WILL REPLACE THE COMPANY'S SINGLE CLASS OF COMMON IN THE COAL INDUSTRY GROUP 9307270040 930727 BUSINESS BRIEF LORAL CORP UNIT GETS CONTRACT TO BUILD 2 BROADCAST TV SATELLITES LORAL CORP'S SPACE SYSTEMS/LORAL SUBSIDIARY IN PALO ALTO CALIF SAID IT RECEIVED A CONTRACT VALUED AT MORE THAN 400 MILLION TO BUILD TWO BROADCAST TELEVISION SATELLITES FOR THE TEMPO SUBSIDIARY OF TELECOMMUNICATIONS INC THE HIGHPOWERED SATELLITES WHICH USE DIGITIZATION AND VIDEO COMPRESSION TO PROVIDE INCREASED CHANNEL CAPACITY WILL PROVIDE DIRECTTOHOME TELEVISION SERVICE TO CUSTOMERS IN THE US UNDER TERMS OF THE CONTRACT WHICH WAS RESTRUCTURED FROM AN EARLIER AGREEMENT SPACE SYSTEMS/LORAL WILL DELIVER THE TWO SATELLITES IN ORBIT IN JUNE AND OCTOBER 1996 SPACE SYSTEMS/LORAL WILL BE RESPONSIBLE FOR RISK MANAGEMENT AND THE PROCUREMENT OF LAUNCH SERVICES 9307270039 930727 MINE WORKERS UNION TO EXPAND COAL STRIKE TO 9 ADDITIONAL SITES WASHINGTON THE UNITED MINE WORKERS SAID IT WOULD EXPAND ITS 11WEEKOLD SELECTIVE COAL STRIKE AS OF 1201 AM EDT TODAY TO INCLUDE AN ADDITIONAL 1000 WORKERS THE NINE NEWLY TARGETED MINES IN OHIO WEST VIRGINIA AND KENTUCKY BELONG TO HANSON PLC'S PEABODY HOLDING CO AND CONSOL ENERGY INC WHICH IS OWNED BY GERMANY'S RHEINBRAUN AG AND DUPONT CO THE EXPANSION BRINGS THE TOTAL NUMBER OF STRIKERS TO 17000 THE UNION SAYS IT IS STRIKING OVER JOB SECURITY AT THESE COMPANIES WHICH ARE MEMBERS OF THE BITUMINOUS COAL OPERATORS ASSOCIATION IN ADDITION TO PEABODY AND CONSOL THE UMW CONTINUES TO STRIKE ARCH MINERAL CORP ASHLAND COAL CO ZIEGLER COAL HOLDING CO AND ROCHESTER & PITTSBURGH COAL CO 9307270038 930727 WHO'S NEWS JOSEPHTHAL SEEKS MERGER WITH RODMAN & RENSHAW NEW YORK THE SECURITIES FIRM OF JOSEPHTHAL LYON & ROSS SAID IT IS INTERESTED IN PURSUING A MERGER WITH RODMAN & RENSHAW CAPITAL GROUP INC THE CHICAGOBASED BROKERAGE CONCERN SAID IT WILL REVIEW THE PROPOSAL DETAILS WEREN'T AVAILABLE LATE YESTERDAY IT WAS THE POSSIBILITY OF A MERGER WITH JOSEPHTHAL THAT CAUSED RODMAN'S 65YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER KURT KARMIN TO PUSH BACK THE MATTER OF HIS SUCCESSION A SPOKESMAN SAID MR KARMIN HAD LAST WEEK INDICATED THAT HE WOULD STEP DOWN BUT THEN PULLED BACK FROM THAT POSITION RODMAN & RENSHAW SHARES CLOSED UP 50 CENTS AT 725 IN BIG BOARD COMPOSITE TRADING A PRICE THAT VALUES THE COMPANY AT ABOUT 311 MILLION 9307270037 930727 POLITICS & POLICY SMALL BUSINESS DEDUCTION IS LIKELY TO BE TRIMMED WASHINGTON LAWMAKERS NEGOTIATING A DEFICITREDUCTION COMPROMISE ARE LIKELY TO AGREE TO A TAX BREAK FOR SMALL BUSINESSES' INVESTMENTS THAT IS SMALLER THAN THE HOUSE OR SENATE APPROVED THE DEMOCRATIC NEGOTIATORS WHEN THEY RESUME MEETING TODAY ARE EXPECTED EITHER TO ACCEPT A NEW PROPOSAL FROM HOUSE NEGOTIATORS THAT WOULD ALLOW SMALL BUSINESSES AND FARMERS TO DEDUCT AS MUCH AS TO 20000 FROM CURRENT INCOME FOR EQUIPMENT PURCHASES MADE IN A YEAR THE NEGOTIATORS MIGHT ULTIMATELY AGREE TO A SLIGHTLY LOWER AMOUNT A 20000 DEDUCTION WOULD DOUBLE THE CURRENT 10000 WRITEOFF BUT IT IS LESS GENEROUS THAN PRESIDENT CLINTON WANTS THE HOUSE DEFICITREDUCTION PACKAGE CALLED FOR A 25000 WRITEOFF AN AMOUNT REQUESTED BY MR CLINTON IN A FUTILE BID TO ENLIST THE SUPPORT OF THE MAJOR LOBBYING GROUP FOR SMALL BUSINESS THE SENATE PROPOSED 20500 IN ITS BILL BOTH MEASURES WOULD TAKE EFFECT THIS YEAR AS THE NEGOTIATORS LABOR TO REACH AN AGREEMENT THEIR GOAL IS TO FINISH LATE THIS WEEK THE ADMINISTRATION AND SENATE LEADERS ARE STRUGGLING BOTH TO PERSUADE DEMOCRATIC DEFECTORS TO SUPPORT THE FINAL PRODUCT AND TO HOLD SUPPORTERS 9307270036 930727 MARIETTA AWARDED US JOB TO MANAGE NUCLEAR LABS BETHESDA MD MARTIN MARIETTA CORP SAID THE US ENERGY DEPARTMENT AWARDED IT A FIVEYEAR CONTRACT TO MANAGE THE SANDIA NATIONAL LABORATORIES IN ALBUQUERQUE NM BEGINNING OCT 1 THE LABS PRIMARILY ARE INVOLVED IN MAINTAINING THE NATION'S NUCLEAR STOCKPILE THE AEROSPACE COMPANY WILL RECEIVE A 103 MILLION MANAGEMENT FEE THE FIRST YEAR WITH SUBSEQUENT FEES AWARDED ANNUALLY BASED ON ITS PERFORMANCE MARTIN MARIETTA WILL SUCCEED AMERICAN TELEPHONE & TELEGRAPH CO WHICH HAS MANAGED THE LABORATORY COMPLEX ON A NOTFORPROFIT BASIS SINCE 1949 WHEN IT TOOK OVER OPERATIONS AT THE BEHEST OF PRESIDENT TRUMAN LAST YEAR AT&T ANNOUNCED THAT IT HAD DECIDED TO WITHDRAW FROM MANAGING THE FACILITIES CITING CHANGING ROLES FOR BOTH AT&T AND SANDIA MARTIN MARIETTA WILL BEGIN A FORMAL TRANSITION PHASE AUG 1 TO ASSUME MANAGEMENT OF THE LABORATORIES AND THEIR 8700 EMPLOYEES IN NEW MEXICO CALIFORNIA NEVADA AND HAWAII THE COMPANY SAID IT HOPES TO TRANSFER RELEVANT TECHNOLOGIES TO THE PRIVATE SECTOR FROM SANDIA DR AL NARATH A 34YEAR SANDIA AT&T EMPLOYEE WILL CONTINUE AS PRESIDENT AND DIRECTOR OF THE LABS DR JAMES A TEGNELIA WILL BE EXECUTIVE VICE PRESIDENT AND DEPUTY LABS DIRECTOR 9307270035 930727 BUSINESS BRIEF PWA CORP MORE THAN 70 OF CREDITORS SIGN RESTRUCTURING ACCORD PWA CORP SAID THAT MORE THAN 70 OF ITS SENIOR CREDITORS SIGNED AN AGREEMENT TO RESTRUCTURE THE COMPANY'S DEBT THE CALGARY ALBERTA HOLDING COMPANY FOR CANADIAN AIRLINES INTERNATIONAL LTD IS TRYING TO CONVERT OVER 700 MILLION CANADIAN DOLLARS US547 MILLION OF DEBT INTO EQUITY AS PART OF THE RESTRUCTURING WHICH IS A PREREQUISITE FOR ARRANGING A C246 MILLION INVESTMENT IN THE AIRLINE BY AMR CORP AMR IS THE DALLASBASED PARENT OF AMERICAN AIRLINES A SPOKESWOMAN FOR PWA SAID ALL THE CREDITORS WHO ATTENDED A MEETING IN CALGARY SIGNED THE DEBT RESTRUCTURING AGREEMENT THE COMPANY SAID IT EXPECTS TO OBTAIN THE SIGNATURES OF THE REMAINING CREDITORS WHO WERE UNABLE TO ATTEND THE MEETING BY THE END OF AUGUST THE AMR AGREEMENT ALSO IS SUBJECT TO CANADIAN AIRLINES OBTAINING AN AGREEMENT THAT WOULD ALLOW IT TO TRANSFER ITS COMPUTERIZED SEAT RESERVATION BUSINESS TO AMR'S SABRE SYSTEM FROM THE SYSTEM IT COOWNS WITH COMPETING AIRLINE AIR CANADA 9307270034 930727 BUSINESS BRIEF US HEALTHCARE INC COMPANY POSTS 43 INCREASE IN NET FOR SECOND QUARTER US HEALTHCARE INC A BLUE BELL PA HEALTH MAINTENANCE ORGANIZATION SAID SECONDQUARTER EARNINGS ROSE 43 TO 672 MILLION FUELED BY A JUMP IN ENROLLMENT AND CONTINUED COST CONTROLS REVENUE CLIMBED 22 TO 650 MILLION FROM 532 MILLION IN THE YEAREARLIER QUARTER THE 62CENTSASHARE EARNINGS COMPARE WITH YEAREARLIER PROFIT OF 47 MILLION OR 43 CENTS A SHARE THE RESULTS WERE AHEAD OF WALL STREET ESTIMATES SENDING US HEALTHCARE SHARES CLIMBING TO 52625 UP 2875 IN LATE OVERTHECOUNTER TRADING THIS CONTINUES A LONG STRING OF POSITIVE RESULTS SAID TODD RICHTER HEALTH SERVICES ANALYST AT DEAN WITTER REYNOLDS ENROLLMENT IS UP 125 ANNUALLY WHICH TRANSLATED INTO 100000 NEW SUBSCRIBERS MEDICAL COSTS AS A PERCENTAGE OF PREMIUMS A MEASURE OF PROFIT MARGIN FELL TO 748 FROM 773 IN THE YEARAGO PERIOD 9307270033 930727 BUSINESS BRIEF NATIONSBANK CORP FED GRANTS BANK APPROVAL TO UNDERWRITE DEBT EQUITY NATIONSBANK CORP RECEIVED APPROVAL FROM THE FEDERAL RESERVE BOARD TO UNDERWRITE CORPORATE DEBT AND EQUITY A MOVE THAT PLACES THE AGGRESSIVE BANK IN A SMALL GROUP OF INSTITUTIONS WITH SUCH POWERS THROUGH ITS SUBSIDIARY NATIONSBANC CAPITAL MARKETS INC NATIONSBANK IN CHARLOTTE NC SAID IT WILL CONCENTRATE ON DEBT FINANCINGS IMMEDIATELY EQUITY DEALINGS WHICH CANNOT BEGIN WITHOUT FURTHER FED EXAMINATION WILL COMMENCE IN 12 TO 18 MONTHS THE BANK SAID NATIONSBANK HAD EXPECTED APPROVAL OF ITS APPLICATION WHICH WAS FILED APRIL 13 AND A REALIGNMENT OF ITS CORPORATE AND INSTITUTIONAL BANKING OPERATION WAS ALREADY UNDER WAY TO ACCOMMODATE THE CHANGE AMONG MAJOR DOMESTIC BANKS ONLY JP MORGAN & CO AND BANKERS TRUST NEW YORK CORP ARE AUTHORIZED TO UNDERWRITE BOTH CORPORATE DEBT AND EQUITY THE FED'S DECISION FOLLOWS THE JULY 6 COMPLETION OF NATIONSBANK'S PURCHASE OF CHICAGO RESEARCH & TRADING CO 9307270032 930727 BUSINESS BRIEF PITTSTON CO SHAREHOLDERS ALLOW DIVISION OF STOCK INTO 2 NEW CLASSES PITTSTON CO SHAREHOLDERS APPROVED A PLAN TO DIVIDE THE STAMFORD CONN COMPANY'S COMMON STOCK INTO TWO CLASSES LINKED TO ITS MINERALS AND TO ITS AIR FREIGHT AND SECURITY BUSINESSES PITTSTON SHARES HAVE RISEN SINCE THE MARCH 12 ANNOUNCEMENT OF THE PROPOSAL CLOSING AT 22375 A SHARE YESTERDAY ON THE NEW YORK STOCK EXCHANGE FROM AROUND 1550 AT THE TIME THE PLAN WAS DISCLOSED UNDER THE PLAN SHAREHOLDERS WILL RECEIVE ONE PITTSTON MINERALS GROUP COMMON SHARE FOR EACH FIVE SHARES OF OLD PITTSTON COMMON THE EXISTING COMMON STOCK WILL BE RECLASSIFIED AS PITTSTON SERVICES GROUP COMMON ON A SHAREFORSHARE BASIS THE COMPANY ALSO SAID DIRECTORS AUTHORIZED A BUYBACK OF 125 MILLION SHARES OF SERVICES STOCK AND 250000 SHARES OF MINERALS STOCK TO REPLACE A PREVIOUS AUTHORIZATION TO REPURCHASE 15 MILLION PITTSTON SHARES 9307270031 930727 MONDAY'S MARKETS INDUSTRIALS SET RECORD BONDS RISE INVESTORS EXPECT CUT IN GERMANY'S RATES BY THE BUNDESBANK BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE BARRELED TO A NEW HIGH AS HOPES OF A GERMAN INTERESTRATE CUT SENT INVESTORS ON A SHOPPING SPREE BOND PRICES ALSO ROSE LENDING SUPPORT TO THE STOCK RALLY AND THE DOLLAR ENDED MIXED I THINK WE ARE SEEING THE SUMMER RALLY SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS CONCERNS ABOUT A SHARP INCREASE IN INTEREST RATES ARE FADING AND THE QUESTIONS THAT EMERGED IN EARLY JUNE ABOUT SECONDQUARTER EARNINGS ARE DISAPPEARING AS OF FRIDAY MR DODGE SAID 55 OF THE COMPANIES IN THE S&P 500 HAD REPORTED EARNINGS THAT WERE IN LINE WITH EXPECTATIONS ON AN OPERATING BASIS EARNINGS OF THESE COMPANIES SURPASSED ESTIMATES MR DODGE SAID WAYNE NORDBERG A PARTNER AT LORD ABBETT WHICH MANAGES ABOUT 65 BILLION IN STOCKS SAID IT WAS WORTH NOTING THAT YESTERDAY'S RALLY CENTERED ON STOCKS THAT ARE SENSITIVE TO THE ECONOMIC CYCLE THERE IS A BELIEF THAT THURSDAY'S MEETING OF THE BUNDESBANK IS GOING TO RESULT IN A SIGNIFICANT REDUCTION IN EUROPEAN INTEREST RATES SAID MR NORDBERG LOWER RATES WOULD HELP INVIGORATE THE FLAGGING EUROPEAN ECONOMIES AND MAKE INVESTORS MORE COMFORTABLE ABOUT PROJECTING A BETTER SUPPLYDEMAND BALANCE FOR A WHOLE HOST OF US COMMODITYBASED COMPANIES SAID MR NORDBERG REFLECTING HOPES OF A RATE CUT BY THE CENTRAL BANK THE GERMAN STOCK MARKET RALLIED 13 YESTERDAY CLOSING AT ITS HIGHEST LEVEL SINCE AUGUST 1990 OTHER EUROPEAN STOCK MARKETS ALSO STRENGTHENED FRANCE AND BRITAIN GAINED 06 EACH SWITZERLAND ROSE 16 HOLLAND ADDED 09 SWEDEN SOARED 15 AND AUSTRIA SURGED 2 BETTING THAT RECESSIONRIDDEN FRANCE AND OTHER EUROPEAN COUNTRIES CAN'T AFFORD TO KEEP RATES HIGH SPECULATORS HAVE LATELY BEEN DUMPING THEIR CURRENCIES AND BUYING MARKS JAMES CORNISH EUROPEAN MARKET STRATEGIST AT NATWEST MARKETS IN LONDON SAID A GERMAN RATE CUT WAS DESIGNED TO STEM THOSE ATTACKS AND SALVAGE EUROPE'S BELEAGUERED EXCHANGERATE MECHANISM A JOINT FLOAT OF NINE CURRENCIES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 057 TO 10673 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 2226 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1214 ISSUES ROSE AND 776 FELL BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE NEARLY 3/8 OF A POINT OR NEARLY 375 FOR EACH 1000 FACE AMOUNT TO YIELD 667 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17245 MARKS AND 10670 YEN COMPARED WITH 17195 MARKS AND 10685 YEN FRIDAY 9307270030 930727 WORLD MARKETS VISIONS OF LOWER RATES PROPEL SHARES IN EUROPE TOKYO STOCKS SIMMER UNEVENLY IN POLITICAL STEW A WALL STREET JOURNAL NEWS ROUNDUP FRANKFURT STOCK PRICES CLIMBED 13 MONDAY TO THE HIGHEST LEVEL SINCE AUGUST 1990 AMID SPECULATION THAT GERMANY WILL LOWER INTEREST RATES THIS WEEK TO SUPPORT THE FRENCH FRANC'S ROLE IN THE EUROPEAN MONETARY SYSTEM LONDON SHARES ADVANCED ALSO DRIVEN BY VISIONS OF LOWER RATES THAT INFECTED EUROPEAN BOURSES BUT TOKYO STOCKS FINISHED MIXED TO SLIGHTLY HIGHER IN EXTREMELY THIN DEALINGS AS JAPAN'S MUDDY POLITICAL SITUATION CONTINUED TO SUPPRESS INVESTOR ACTIVITY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10673 UP 057 REFLECTING INCREASES IN ASIA/PACIFIC AMERICAN AND EUROPEAN MARKETS PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13870 UP 333 OR 25 WITH HEMLO GOLD MINES OF CANADA POSTING A 55 GAIN IN ITS LOCAL CURRENCY SOFTWARE STOCKS TRAILED AT 10976 DOWN 116 OR 11 WITH NOVELL OF THE US SLIDING 14 IN LOCAL CURRENCY IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 2369 POINTS TO 185452 FRACTIONALLY OFF THE INTRADAY HIGH OF 185483 OF THE DAX ISSUES 28 ROSE AND TWO FELL SPECULATION THAT THE GERMAN BUNDESBANK THE CENTRAL BANK WOULD REDUCE INTEREST RATES THURSDAY WAS RAMPANT THESE HOPES FOUND SUPPORT FROM THREE WESTERN GERMAN STATES' JULY DATA ON CONSUMER PRICES WHICH MET ECONOMISTS' EXPECTATIONS EUROPEAN MONETARY SYSTEM TENSIONS ARE PUTTING CENTRAL BANKS UNDER PRESSURE TO KEEP INTEREST RATES HIGH WHICH HURTS THEIR RECESSIONARY ECONOMIES IN FRANKFURT SOME INVESTORS BOUGHT UTILITIES AND FINANCIAL SHARES CITING A POTENTIAL DEVALUATION OF THE FRENCH FRANC FOR SWITCHING OUT OF EXPORTORIENTED SHARES THAT A WOUNDED FRANC WOULD DAMAGE AS FRANCE AND GERMANY ARE MAJOR TRADING PARTNERS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE GAINED 165 POINTS OR ALMOST 1 TO 28442 THE FT 30STOCK INDEX ADVANCED 196 POINTS TO 22542 VOLUME WAS 4836 MILLION SHARES COMPARED WITH 5396 MILLION SHARES IN THE PREVIOUS SESSION EXPECTATIONS FOR STRONG CORPORATE EARNINGS REPORTS SUPPORTED SHARES BUT THE GAINS WERE MAINLY FUELED BY HOPES FOR A SUBSTANTIAL CUT IN BRITAIN'S BASE LENDING RATE NOW 6 LOWER RATES WOULD FAVOR SHARE PRICES AS THIS IMPLIES HIGHER EARNINGS AND CORPORATE BORROWING COSTS WOULD DROP AS WOULD CONSUMER BORROWING COSTS SPURRING DEMAND EQUITIES ALSO COULD BECOME MORE ATTRACTIVE AS THEIR YIELDS BECOME MORE COMPETITIVE WITH DECLINING YIELDS OF FIXEDINCOME INVESTMENTS WITH THE POUND STRONG NOW A DEALER SAID BRITISH BASE RATES COULD FALL TO 45 BY SEPTEMBER OR AT LEAST YEAREND NO MATTER WHETHER GERMANY RESCUES EUROPE'S EXCHANGE RATE MECHANISM WITH BUNDESBANK RATE CUTS IF EUROPEAN RATES FELL WITH THE ERM INTACT BRITISH RATES COULD BE CUT WITHOUT DAMAGING THE POUND OR AN ERM COLLAPSE LED BY DENMARK OR SPAIN COULD SPUR FRANCE TO DEVALUE ITS CURRENCY OR PULL OUT OF THE ERM WHILE REDUCING LENDING RATES EITHER WAY BRITAIN WOULD CUT ITS RATES TO WEAKEN THE POUND AND MAINTAIN ITS MANUFACTURING COMPETITIVENESS IN PARIS STOCKS ROSE IN THIN DEALINGS CENTERED ON ARBITRAGE TRADING DEMAND ON THE FIRST DAY OF THE AUGUST TRADING ACCOUNT PROPELLED THE MARKET ABOVE A PERCEIVED RESISTANCE LEVEL AND THE MOST ACTIVE BUYERS ONCE AGAIN WERE FOREIGN INVESTORS ESPECIALLY THOSE FROM BRITAIN AND THE US AMSTERDAM STOCKS CLIMBED ON THE US DOLLAR'S STRENGTH AND HOPES FOR EUROPEAN RATE CUTS LED BY GERMANY THOUGH TRADING WAS THIN BECAUSE OF NERVOUSNESS ABOUT FIRSTHALF DUTCH CORPORATE EARNINGS MILAN PRICES WEAKENED AS INVESTORS AWAITED BUNDESBANK ACTION ERM SPECULATIVE PRESSURE HAS BATTERED THE ITALIAN LIRA RECENTLY MADRID SHARES ROSE ON GERMAN RATECUT EXPECTATIONS STOCKHOLM SHARES RALLIED TO A HIGH FOR THIS YEAR ON CONTINUED OPTIMISM ABOUT LOWER RATES ZURICH STOCKS JUMPED ON BARGAINHUNTING AND THE DOLLAR'S RISE WHILE FOREIGN INVESTORS CONTINUED TO MAKE SAFEHAVEN PURCHASES BECAUSE OF THE ERM TENSIONS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH TUMBLED 38124 POINTS FRIDAY ROSE 8751 TO 1982208 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 170 MILLION SHARES DOWN FROM 1978 MILLION SHARES IN THE PREVIOUS SESSION LOSING ISSUES OUTNUMBERED GAINING ISSUES 493406 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 2496 POINTS FRIDAY ADDED 622 TO 161555 IN TOKYO THE NIKKEI 225STOCK INDEX WHICH TUMBLED 38124 POINTS FRIDAY ROSE 8751 TO 1982208 ON TUESDAY THE NIKKEI ROSE 2640 POINTS TO CLOSE THE MORNING SESSION AT 1984848 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 170 MILLION SHARES DOWN FROM 1978 MILLION SHARES IN THE PREVIOUS SESSION LOSERS TOPPED GAINERS 493406 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 2496 POINTS FRIDAY ADDED 622 TO 161555 SOME BUYING BY PUBLIC PENSION FUNDS AND NEWLY ESTABLISHED INVESTMENT TRUSTS SUPPORTED THE TOKYO MARKET WHICH WAS BUFFETED BY WEAK ECONOMIC INDICATORS JAPANESE DEPARTMENT STORE SALES IN JUNE FELL A SHARP 89 FROM A YEAR EARLIER AMONG OTHER ASIAPACIFIC MARKETS SYDNEY SHARES FELL ACROSS THE BOARD BECAUSE OF PROFITTAKING AND LACK OF DIRECTION AHEAD OF AUSTRALIAN ECONOMIC DATA LATER THIS WEEK SINGAPORE EQUITIES DROPPED SHARPLY AS UNSUBSTANTIATED RUMORS THAT CHINA'S PARAMOUNT LEADER HAD DIED CAUSED PANIC SELLING HONG KONG STOCKS CLIMBED SHARPLY TO END A STREAK OF THREE CONSECUTIVE LOSING SESSIONS IN A PERIOD THAT INCLUDED LOSSES IN 12 OF THE PAST 15 TRADING DAYS THE GAIN OF 16 WAS THE BEST IN ABOUT SEVEN WEEKS THOUGH TURNOVER REMAINED ANEMIC TAIPEI SHARES ROSE BOOSTED BY LAST WEEK'S INTERESTRATE CUT BY BANKS AND THE DEPRECIATION OF TAIWAN'S CURRENCY AGAINST THE US DOLLAR SEOUL PRICES ROSE AS STOCKS WITH LOW PRICE/EARNINGS RATIOS RALLIED MANILA STOCKS LOST GROUND ON PROFITTAKING AMONG CORPORATE DEVELOPMENTS IN PARIS MOET HENNESSY LOUIS VUITTON LOST 55 FRENCH FRANCS OR 14 TO 3990 FRANCS 67914 THE MAKER OF LUXURY GOODS WINES AND SPIRITS SAID IT EXPECTS TO POST A 25 DECLINE IN FIRSTHALF PROFIT BECAUSE OF A STEEP FALL IN CHAMPAGNE SALES AND THE EFFECT OF THE DEPRECIATION OF THE BRITISH POUND OPERATING INCOME FROM CHAMPAGNE OPERATIONS PLUNGED MORE THAN 70 IN THE HALF RESULTING IN A NET LOSS EXCEEDING 100 MILLION FRANCS 17 MILLION SALES OF CHAMPAGNE AND OTHER WINES FELL 74 TO 18 BILLION FRANCS OVERALL FIRSTHALF SALES ROSE 36 TO 1004 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 9307270029 930727 ADVERTISING THE MESSAGE CLEVER AS IT MAY BE IS LOST IN A NUMBER OF HIGHPROFILE CAMPAIGNS BY KEVIN GOLDMAN IN A RECENT COMMERCIAL FOR THE SUBARU IMPREZA A WOMAN FILLS THE VEHICLE WITH GASOLINE CHECKS THE OIL AND CHATTERS AT THE CAMERA EVERY GUY I KNOW THINKS HE KNOWS EVERYTHING ABOUT CARS AND EVERYTHING ABOUT THE 69 METS TO SHOW HOW COMFORTABLE THE DRIVER IS WITH HER NEW SUBARU AND HOW DISPOSABLE A MAN'S HELP IS SHE SAYS SHE CAN EXPLAIN THE CAR'S ABS BRAKES AND ALLWHEEL DRIVE TO A GUY CONCLUDING AND AFTER I EXPLAIN ALL THAT TO HIM I SAY OH YEAH THE 69 METS THE CUBS CHOKED SO DID THE ADVERTISING CAMPAIGN DESIGNED FOR SUBARU OF AMERICA INC BY AD AGENCY WIEDEN & KENNEDY WHICH WAS FIRED FRIDAY AFTER A TWOYEAR RELATIONSHIP WITH SUBARU THE CAR MAKER A UNIT OF FUJI HEAVY INDUSTRIES LTD HAS PULLED THE CAMPAIGN AND IS LOOKING FOR A NEW AGENCY THE PROBLEM IN TRYING TO WOO A BROADER AUDIENCE INCLUDING WOMEN SUBARU STRAYED FROM ITS ONCESUCCESSFUL MESSAGE INEXPENSIVE AND BUILT TO STAY THAT WAY IN A YEAR OF MORETHANUSUAL ADVERTISING FLOPS AND DESPERATION AGENCY SWITCHING SUBARU'S CAMPAIGN IS ONE OF A NUMBER OF HIGHPROFILE AND COSTLY AD CAMPAIGNS THAT HAVE EITHER BEEN PULLED BY ADVERTISERS OR BEEN CRITICIZED SO ROUNDLY THAT ADVERTISING PUNDITS SUGGEST THEY SHOULD BE SCRAPPED IN MOST CASES ADVERTISERS HAVE TRIED FOR SOMETHING DIFFERENT AND CATCHY BUT WOUND UP WITH A CAMPAIGN THAT FORGOT TO GET ACROSS THE PRIMARY SELLING POINT FOR THE PRODUCT WE'RE IN A BAD SITUATION WHERE CLIENTS WANT THEIR AD AGENCIES TO BE DIFFERENT JUST TO BE DIFFERENT WITHOUT ANSWERING A FUNDAMENTAL QUESTION FOR ADVERTISING IS THE MESSAGE CLEAR SAYS HAL ROSS PRESIDENT OF MAPES & ROSS A COMMUNICATIONSRESEARCH FIRM MOREOVER HE ADDS CREATIVE AGENCY EXECUTIVES DON'T LIKE TO REPEAT WHAT OTHERS HAVE DONE AND THEY ALSO THINK THE AUDIENCE IS TIRED OF A MESSAGE WHEN THAT SIMPLY ISN'T TRUE THE RESULT SAYS MR ROSS A NEW MESSAGE IS CREATED AND IT FAILS THAT APPEARS TO HAVE BEEN THE CASE FOR COCACOLA CO'S DIET COKE WHICH RECENTLY SCRAPPED ITS TASTE IT ALL AND ONE AWESOME CALORIE CAMPAIGN AFTER JUST SEVEN MONTHS AND CRITICS SUGGEST THAT THE SAME PROBLEM PLAGUES AMERICAN EXPRESS CO'S NEW ADS STARRING SMARTALECK COMEDIAN JERRY SEINFELD AND AMERICAN TELEPHONE & TELEGRAPH CO'S COMMERCIALS PROMOTING ITS LONGDISTANCE I PLAN TO SOME DEGREE ADVERTISING CAMPAIGNS GET MORE THAN THEIR SHARE OF THE BLAME FOR A COMPANY'S PROBLEMS MARK DUNN SUBARU'S NATIONAL ADVERTISING MANAGER SAYS IT WAS CLEAR THE NEW CAMPAIGN FALTERED BECAUSE THE SALES NEEDLE DIDN'T MOVE WORSE THAN THAT SALES ACTUALLY FELL 21 IN THE FIRST HALF BUT DAN G WIEDEN PRESIDENT AND CHIEF OPERATING OFFICER OF FIRED AD AGENCY WIEDEN & KENNEDY CORRECTLY POINTS OUT THAT SUBARU HAS BEEN BATTERED BY INCREASED COMPETITION FROM JAPANESE AND GERMAN AUTO MAKERS BUT WITH HEIGHTENED COMPETITION IN NEARLY EVERY MARKET FINDING A CLEAR ADVERTISING MESSAGE IS MORE IMPORTANT THAN EVER INDUSTRY EXECUTIVES SAY ADVERTISERS NEED TO REACH CONSUMERS WHO ARE BEING BOMBARDED WITH AD CLUTTER SOME FAULT AD AGENCIES FOR FOCUSING MORE ON THE ARTISTIC QUALITY OF THEIR WORK THAN ON THE PRODUCT THE ADVERTISER IS TRYING TO SELL THERE IS SO MUCH EMPHASIS ON THE CREATIVE ASPECT OF THE ADS SORT OF AREN'T WE CLEVER' THAT THE MESSAGE IS LOST SAYS CAROL MOOG PRESIDENT OF CREATIVE FOCUS A CONSULTING FIRM CRITICS SAY THE MESSAGE IS LOST FOR EXAMPLE IN ADS FROM AT&T THAT FEATURE THE VOICE OF ACTOR TOM SELLECK ONE AD LOOKS LIKE A FOREIGN FILM GONE AWRY BELLS CHIME AND A BALDHEADED MAN STANDS ERECT HIS HEAD IS IN CLOSEUP AS HIS EARS ILLUMINATE A PARTLY CLOUDY SKY APPEARS WHERE HIS FACE SHOULD BE MR SELLECK TALKS ABOUT NEW TECHNOLOGY DUBBED TRUEVOICE THAT MAKES FOR BETTER SOUND TRANSMISSION IN LONGDISTANCE SERVICE AT&T KICKED OFF THE I PLAN THIS YEAR PARTLY IN RESPONSE TO COMPETITION FROM MCI COMMUNICATIONS CORP'S FRIENDS & FAMILY AND SPRINT CORP'S BE THERE NOW CAMPAIGNS ALL THREE COMMUNICATIONS GIANTS ARE OFFERING A WIDE RANGE OF SERVICES THE PROBLEM 30SECOND OR EVEN ONEMINUTE SPOTS AREN'T THE PLACE TO GET THE MESSAGE ACROSS THERE IS A LOT OF NEGATIVE FEELING TOWARD AT&T BECAUSE THE ADS ARE SO CONFUSING SAYS LEE WEINBLATT CHAIRMAN OF PRETESTING CO WHICH TESTS AUDIENCE RESPONSES TO TELEVISION AND PRINT ADS ADDS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES AN ADVERTISINGCONSULTING FIRM THE CONCEPT IS HARD TO PRESENT SO THE MORE SPECIFIC YOU CAN GET THE EASIER IT IS FOR A CUSTOMER TO SAY THIS IS FOR ME BOB GARFIELD THE AD CRITIC AT ADVERTISING AGE MAGAZINE IS MORE BLUNT STRATEGICALLY IT'S SOUND ADVERTISING WITH ONE PROBLEM I HAVE NO IDEA WHAT THEY ARE TALKING ABOUT MR WEINBLATT SAYS THE AT&T ADS DID PARTICULARLY POORLY WHEN TESTED AMONG 400 RANDOMLY SELECTED INDIVIDUALS HE ADDS WE HAD TO HIT PEOPLE OVER THE HEADS TO GET THEM NOT TO ZAP THE COMMERCIALS AT&T FOR ITS PART HAS NO PLANS TO SCALE BACK OR ALTER AT&T'S I PLAN ADVERTISING SAYS A SPOKESMAN THE COMPANY CONDUCTS EXTENSIVE CONTINUING TESTING ON ITS ADVERTISING AND FINDS THE AWARENESS OF THE I PLAN IS HIGH HE ADDS CUSTOMERS UNDERSTAND WHAT THE I PLAN IS ABOUT THAT IT REPRESENTS AT&T'S COMMITMENT TO INDIVIDUAL SERVICE TO SAVINGS OPPORTUNITIES AND TO INNOVATION THIS IS A VERY SUCCESSFUL CAMPAIGN BY ANY DEFINITION BUT CRITICS CONTEND THAT EVEN IF THE ADS ATTRACT A YOUNGER AUDIENCE THEY DON'T GIVE THEM THE RIGHT MESSAGE I THINK OF JERRY SEINFELD AS A WISE GUY AND THAT DOESN'T JIBE WITH THE PROFESSIONAL IMAGE OF AMERICAN EXPRESS SAYS MR PERMUT IF I LOSE MY AMEX CARD AT THREE IN THE MORNING I DON'T WANT HIM ON THE OTHER END OF THE PHONE WHEN I REPORT IT MISSING I WANT FORMER TRAVELER'SCHECKS SPOKESMAN KARL MALDEN INSTEAD MR WEINBLATT SAYS RESEARCH BY HIS FIRM SHOWED THE AMERICAN EXPRESS SPOTS WITH MR SEINFELD WERE ANNOYING HE ADDS HE ISN'T THE STAR OF A WELL LOVED SERIES LIKE CHEERS' HIS HUMOR IS CUTTING EDGE EITHER YOU LIKE IT OR YOU DON'T MR WEINBLATT SAYS THE FIRST BATCH OF AMERICAN EXPRESS ADS TESTED POORLY BECAUSE THEY WEREN'T ABOUT ANYTHING UPLIFTING HE ADDS THEY WERE ABOUT THE DEBT AND THE NERVE OF A SALESMAN CHOOSING A CUSTOMER'S TIE THE MORE RECENT ADS HAVE TESTED BETTER HE SAYS ALTHOUGH THEY AREN'T THE SUCCESS OF THE OLD MEMBERSHIP HAS ITS PRIVILEGES' CAMPAIGN OF A FEW YEARS AGO MR WEINBLATT SAYS THE CURRENT ADS FEATURING MR SEINFELD DESIGNING ZANY MEMBERSHIP APPLICATIONS HAVE INCREASED CURIOSITY ABOUT APPLYING IN THE CASE OF THE SCRAPPED DIET COKE ADS MARKETING EXPERTS SAY PARENT COCACOLA CO MADE THE CLASSIC MISTAKE OF GOING AFTER CHANGE FOR CHANGE'S SAKE THE PRODUCT WAS INTRODUCED IN 1980 WITH THE SLOGAN JUST FOR THE TASTE OF IT WHICH ADDRESSED CONSUMER CONCERNS THAT DIET COLAS HAD A PECULIAR AFTERTASTE BUT THE COMPANY AND ITS AD AGENCY INTERPUBLIC GROUP OF COS' LINTAS GOT RESTLESS WITH THE SAME MESSAGE AFTER 13 YEARS LIKE OTHER DIET SOFT DRINKS MEANWHILE DIET COKE IS SEEING ITS MARKET SHARE ERODED BY PRODUCTS SUCH AS ICED TEA AND NEW AGE BEVERAGES SO DIET COKE TRIED TO CONNECT PHYSICAL FITNESS WITH IMBIBING THE SOFT DRINK A LINTAS OFFICIAL SAYS THE CAMPAIGN IS BEING TOTALLY REWORKED AND THE TASTE IT ALL SLOGAN WON'T SURVIVE IN THE PAST COCACOLA SAYS IT LIKED SOME ASPECTS OF THE CAMPAIGN INCLUDING THE THEME SONG ADVERTISERS WOULD BE WELLSERVED SAYS MR WEINBLATT IF THEY FOLLOW A SIMPLE RULE SPEAK TO THE REAL NEEDS OF THE PEOPLE IF I'M WATCHING A COMMERCIAL FOR DIET COKE I WANT TO KNOW THAT IT WILL QUENCH MY THIRST PLEASE DON'T TELL ME ABOUT MIDDLEAGE LAWYERS WHO CAN CLIMB MOUNTAINS INTERPUBLIC AGENCY HOLDING COMPANY INTERPUBLIC GROUP REPORTED SECONDQUARTER NET INCOME OF 49 MILLION OR 65 CENTS A SHARE UP 13 FROM 432 MILLION OR 58 CENTS A SHARE IN THE QUARTER LAST YEAR THE RESULTS WERE IN LINE WITH EXPECTATIONS INTERPUBLIC WHOSE AD AGENCIES INCLUDE MCCANNERICKSON LINTAS AND LOWE & PARTNERS REPORTED FLAT REVENUE OF 4838 MILLION COMPARED WITH 4853 MILLION IN LAST YEAR'S QUARTER REUNION MCI COMMUNICATIONS IS REUNITING THE CAST OF THE OLD STAR TREK TELEVISION SHOW IN A COMMERCIAL FOR THE FRIENDS & FAMILY DISCOUNT PROGRAM IN THE SPOT THE ENTERPRISE CREW INCLUDING WILLIAM SHATNER LEONARD NIMOY AND DEFOREST KELLEY GET LONGDISTANCE DISCOUNTS AS PART OF THE SAME CALLING CIRCLE WHO'S NEWS WHITTLE COMMUNICATIONS LP'S CHANNEL ONE WHICH DELIVERS NEWS PROGRAMS AND COMMERCIALS TO SCHOOL CLASSROOMS IS EXPECTED TO NAME ATLANTA ADMAN JOEL BABBIT TO THE POST OF PRESIDENT MR BABBIT 39 YEARS OLD CONFIRMED THAT HE HAS ACCEPTED THE OFFER WHICH MUST STILL BE APPROVED BY THE WHITTLE BOARD HE IS THE FORMER CHIEF OF MARKETING AND COMMUNICATIONS FOR THE CITY OF ATLANTA WHITTLE DECLINED TO COMMENT 9307270028 930727 BUSINESS BRIEF GENERAL MOTORS CORP HUGHES GETS A US GRANT TO AID ITS LAIDOFF WORKERS HUGHES AIRCRAFT CO SAID IT RECEIVED A 10 MILLION GRANT FROM THE US DEPARTMENT OF LABOR TO ASSIST EMPLOYEES AFFECTED BY ITS CURRENT ROUND OF LAYOFFS THE LOS ANGELES COMPANY A UNIT OF GENERAL MOTORS CORP HAS REDUCED ITS WORK FORCE TO 59000 WORLDWIDE FROM 80000 ITS PEAK IN 1986 HUGHES SAID AN ADDITIONAL SEVERAL THOUSAND LAYOFFS WHICH HAVE ALREADY BEEN ANNOUNCED ARE SCHEDULED FOR LATER THIS YEAR PRIMARILY FROM SOUTHERN CALIFORNIA OPERATIONS HUGHES AN ELECTRONICS FIRM SPECIALIZING IN HIGHTECHNOLOGY PRODUCTS FOR MILITARY SCIENTIFIC AND COMMERCIAL USE SAID THE GRANT IS THE FIRST OF ITS KIND TO BE AWARDED TO A PRIVATE FIRM THE FEDERAL GRANT WILL BE USED TO ESTABLISH CAREER RESOURCE CENTERS AT VARIOUS LOCATIONS IN LOS ANGELES ORANGE AND SAN DIEGO COUNTIES TO ASSIST ABOUT 12000 LAIDOFF HUGHES WORKERS THE COMPANY SAID FORMER EMPLOYEES WILL RECEIVE JOB TRAINING ASSISTANCE IN PREPARING RESUMES AND ACCESS TO PUBLICATIONS AND OTHER INFORMATION GEARED TOWARD LOCATING JOBS 9307270027 930727 INTERNATIONAL BRIEF GUCCIO GUCCI SPA FASHION HOUSE'S HALFOWNER ASKS PARTNER TO DROP STAKE THE BATTLE FOR CONTROL OF ITALIAN HIGHFASHION GROUP GUCCIO GUCCI SPA HEATED UP AS MAURIZIO GUCCI WHO OWNS 50 OF THE COMPANY CALLED ON HIS PARTNER INVESTCORP SA TO RELINQUISH ITS 50 STAKE CLAIMING THAT INVESTCORP WAS TRYING TO PUSH HIM OUT OF THE MILANBASED GROUP MR GUCCI SAID HE DIDN'T MIND IF INVESTCORP BOUGHT HIM OUT OR VICE VERSA OR IF ONE PARTY TOOK A BIGGER STAKE MR GUCCI AND INVESTCORP HAVE BEEN AT LOGGERHEADS OVER THE FUTURE OF THE GROUP FOR NEARLY A YEAR MR GUCCI CLAIMS HIS STRATEGY IS LONGTERM AND FOR THE GOOD OF THE COMPANY WHILE INVESTCORP'S IS FOR SHORTTERM GAIN INVESTCORP IS A BAHRAINBASED INVESTMENT BANK REPRESENTING A GROUP OF INVESTORS MR GUCCI DENIED HE HAD PLACED HIS STAKE IN THE HANDS OF CREDITOR BANKS AND THEN BOUGHT IT BACK A MOVE WHICH INVESTCORP FOUND UNACCEPTABLE UNDER THE TERMS OF THEIR JOINT VENTURE WHICH GIVES EACH PARTNER FIRST REFUSAL ON ANY SHARE SALE MR GUCCI'S SHARES APPARENTLY WERE PLACED AS GUARANTEE AGAINST DEBTS THAT HE PAID OFF THROUGH PRIVATE RESOURCES 9307270026 930727 INTERNATIONAL BRIEF NORSK HYDRO AS FIRM REPORTS FIRSTHALF NET DROPPED 8 TO 3585 MILLION NORSK HYDRO AS A NORWEGIAN PETROLEUM CHEMICALS AND METALS GROUP SAID FIRSTHALF NET INCOME SLIPPED 8 TO 263 BILLION KRONER 3585 MILLION FROM 286 BILLION KRONER IN THE YEAREARLIER PERIOD REVENUE ROSE 48 TO 3226 BILLION KRONER FROM 3078 BILLION KRONER THE GROUP'S FIRSTHALF RESULT WAS STRONGLY INFLUENCED BY NORSK HYDRO'S SALE OF ITS 383 STAKE IN NORWEGIAN CONFECTIONARY MAKER FREIA MARABOU AS DURING THE SECOND QUARTER THE COMPANY RECEIVED 36 BILLION KRONER FOR ITS MARABOU SHARES ON WHICH IT REALIZED A PRETAX GAIN OF 25 BILLION KRONER WHEN ADJUSTED FOR THE EFFECTS OF THE DIVESTMENT OF THE FREIA MARABOU SHARES NET PROFIT IN THE SECOND QUARTER DECLINED TO 307 MILLION KRONER FROM 506 MILLION KRONER IN THE FIRST QUARTER AND FROM 686 MILLION KRONER IN THE SECOND QUARTER OF 1992 HOWEVER THE COMPANY ATTRIBUTED THIS VARIATION TO SEASONAL FACTORS WHICH USUALLY OCCUR BETWEEN THE FIRST AND SECOND QUARTERS OF THE YEAR 9307270025 930727 MARKETING & MEDIA MARKETSCAN MARKET MATURES FOR A CHILDREN'S REMEDY BY WENDY BOUNDS ST JOSEPH ASPIRIN FOR CHILDREN IS ALL GROWN UP TAKEN OFF THE MARKET ALMOST SEVEN YEARS AGO BY SCHERINGPLOUGH CORP THE ONETIME CHILDREN'S ASPIRIN IS BEING RELAUNCHED AS A LOWDOSAGE ASPIRIN AIMED AT ADULTS WITH HEART PROBLEMS THIS MONTH SCHERINGPLOUGH BEGAN REINTRODUCING THE ORANGEFLAVORED CHEWABLE PRODUCT INCLUDING ITS FAMILIAR TOYSOLDIER LOGO BUT WITH A LABEL REWORDED TO SAY ADULT CHEWABLE ASPIRIN THE COMPANY BASED IN MADISON NJ PULLED ITS ORIGINAL ST JOSEPH CHILDREN'S TABLETS FROM THE SHELVES IN LATE 1986 AFTER REPORTS ASSOCIATED ASPIRIN WITH REYE'S SYNDROME A RARE BUT POTENTIALLY FATAL CHILDREN'S DISEASE ST JOSEPH'S NEW PRODUCT AN 81MILLIGRAM PILL COMPARED WITH THE USUAL ADULT DOSAGE OF 325 MILLIGRAMS ENTERS A WEAK MARKET IN WHICH THE FEW LOWDOSE OR CHILDREN'S ASPIRINS PRODUCED ARE MOSTLY CONSUMED BY ADULTS SINCE THE SPECTER OF REYE'S SYNDROME WAS RAISED MOST CHILDREN TAKING ANALGESICS ARE GIVEN ACETAMINOPHEN OR IBUPROFENBASED PRODUCTS THE SCHERINGPLOUGH PRODUCT'S MAIN COMPETITION WILL BE SIMILAR LOWDOSE CHEWABLEASPIRIN PILLS A MARKET CONTROLLED PRIMARILY BY PRIVATELABEL BRANDS AND THE BAYER BRAND PRODUCED BY STERLING WINTHROP INC A UNIT OF EASTMAN KODAK CO WE'RE CAPITALIZING ON OUR OLD PINK AND BLUE PACKAGING SAYS DOUG PETKUS A SPOKESMAN FOR SCHERINGPLOUGH AND THEN OUR CONCEPT LIES WITH BAYER'S SUCCESS WITH MARKETING CHILDREN'S ASPIRIN FOR ADULTS SOME ANALYSTS REMAIN LUKEWARM ABOUT THE ST JOSEPH MOVE THE ESTABLISHED BRANDS ALREADY HAVE THE MARKET SAYS SAMUEL D ISALY ANALYST WITH NEW YORK'S MEHTA & ISALY WHAT'S MORE SCHERINGPLOUGH ALREADY MARKETS AN 81MILLIGRAM ADULT ST JOSEPH CHEWABLE ASPIRIN THAT IS REMARKABLY SIMILAR TO THIS RELAUNCH PRODUCT EXCEPT THAT IT IS A NONFLAVORED CAPLET SALES HAVE BEEN LOW HOWEVER GARNERING ONLY 02 OF ALL ASPIRIN SALES AND DROPPING 16 IN THE THREE MONTHS ENDED MAY 31 ACCORDING TO TOWNEOLLER & ASSOCIATES A UNIT OF CHICAGOBASED INFORMATION RESOURCES INC THE COMPANY PLANS TO PHASE OUT THIS PRODUCT AND REPLACE IT WITH THE NEW ST JOSEPH ASPIRIN SCHERINGPLOUGH IS BANKING ON A GROWING NUMBER OF PHYSICIANS WHO RECOMMEND LOW DOSAGES OF ASPIRIN FOR HEART PATIENTS WITH THE RISING POPULARITY OF IBUPROFEN AND ACETAMINOPHEN PRODUCTS ASPIRIN SALES HAVE BEEN ON THE DECLINE IN THE 27 BILLION PAINRELIEVER MARKET SUPERMARKET AND DRUGSTORE SALES FOR STERLING WINTHROP'S REGULAR BAYER ASPIRIN TABLETS DROPPED 19 FOR THE THREE MONTHS ENDED MAY 31 1993 AND FELL 14 FOR THE 12MONTH PERIOD ENDED MAY 31 ACCORDING TO TOWNEOLLER INCREASINGLY DOCTORS SUGGEST PATIENTS TAKE AT LEAST 80 MILLIGRAMS OF ASPIRIN A DAY AFTER THEY TURN 50 THE EQUIVALENT OF A BABY ASPIRIN SAYS WILLIAM JACOTT VICE CHAIRMAN OF THE AMERICAN MEDICAL ASSOCIATION'S BOARD OF TRUSTEES NEARLY ALL OF BAYER CHILDREN'S CHEWABLE ASPIRIN SALES 15 MILLION THIS YEAR ARE TO ADULTS AND 20 TO 30 OF ALL BAYER ASPIRIN CONSUMERS ARE ADULTS WITH HEART PROBLEMS SAYS A STERLING WINTHROP SPOKESWOMAN BUT SCHERINGPLOUGH MUST BE CAUTIOUS WITH ITS ESTIMATED 6 MILLION MARKETING PLANS THE FOOD AND DRUG ADMINISTRATION DISCOURAGES PROMOTION OF ASPIRIN AS A MEDICATION FOR HEART PROBLEMS WITHOUT A DOCTOR'S RECOMMENDATION AND HAS APPROVED IT ONLY FOR PATIENTS WHO HAVE ALREADY SUFFERED A HEART ATTACK KEEPING THIS IN MIND SCHERINGPLOUGH SAYS IT WILL CAREFULLY WORD ITS RADIO AND NEWSPAPER ADVERTISEMENTS TO PROMOTE ST JOSEPH THE LABEL ON THE BOTTLE WILL MAKE NO MENTION OF HEART DISEASE EVEN COMPANIES THAT DON'T MAKE CHEWABLE OR LOWDOSE ASPIRIN SEE A SIGNIFICANT PERCENTAGE OF SALES GO TO PEOPLE WITH HEART PROBLEMS SMITHKLINE BEECHAM PLC'S ECOTRIN WHICH HELD ABOUT 15 OF THE ASPIRIN MARKET SHARE DURING THE LAST 12 MONTHS ESTIMATES THAT 25 TO 30 OF ITS SALES GO TO USERS WITH CARDIOVASCULAR DIFFICULTIES SMITHKLINE BEECHAM WHICH PRODUCES ITS ECOTRIN IN 325 AND 500MILLIGRAM TABLETS SAYS IT HAS NO PLANS TO REACT TO SCHERINGPLOUGH'S ST JOSEPH'S RELAUNCH LIKEWISE STERLING WINTHROP GIVES NO INDICATION OF ANY MARKETING CHANGES FOR ITS BAYER ALTHOUGH IT NOTES THE SIGNIFICANT ROOM FOR GROWTH IN THE ASPIRIN CATEGORY 9307270024 930727 BUSINESS BRIEF SYNERGEN INC BIOTECHNOLOGY FIRM'S LOSS WIDENED IN SECOND QUARTER SYNERGEN INC ONCE A HIGHFLYING BIOTECHNOLOGY FIRM AND NOW STRUGGLING WITH ITS FLAGSHIP PRODUCT SAID ITS LOSSES WIDENED NEARLY NINEFOLD IN THE SECOND QUARTER AS REVENUE PLUNGED SYNERGEN REPORTED A LOSS OF 256 MILLION OR 101 A SHARE ON REVENUE OF 36 MILLION A YEAR AGO THE BOULDER COLO COMPANY HAD A LOSS OF 29 MILLION OR 12 CENTS A SHARE ON REVENUE OF 13 MILLION THE COMPANY SAID THAT ITS SHARE OF REVENUE FROM A NEUROSCIENCE RESEARCH AND DEVELOPMENT PROJECT WITH SYNTEX CORP FELL TO 820000 FROM 85 MILLION IN THE QUARTER RESULTS WERE ALSO HURT BY A ONETIME RESTRUCTURING CHARGE OF 2 MILLION WHICH THE COMPANY SAID WOULD RESULT IN REDUCED EXPENSES IN THE THIRD AND FOURTH QUARTERS THIS YEAR 9307270023 930727 BUSINESS BRIEF ASARCO INC LOWER METALS PRICES RESULT IN LOSS FOR SECOND QUARTER ASARCO INC NEW YORK POSTED A SECONDQUARTER LOSS DUE TO LOWER METALS PRICES FOLLOWING SIMILARLY BLEAK REPORTS FROM OTHER COPPER COMPANIES THE COMPANY WHICH ALSO PRODUCES LEAD ZINC GOLD AND SILVER REPORTED A LOSS OF 241 MILLION OR 58 CENTS A SHARE COMPARED WITH NET INCOME OF 44 MILLION OR 10 CENTS A SHARE A YEAR EARLIER SALES FELL 15 TO 4166 MILLION FROM 4877 MILLION ASARCO SAID ITS REALIZED COPPER PRICES FELL 17 LEAD FELL 23 AND ZINC PRICES PLUNGED ABOUT 30 GOLD PRICES ROSE ABOUT 28 AND SILVER PRICES INCHED UP ABOUT 2 ALSO THE LINGERING EFFECTS OF HEAVY RAINS IN THE FIRST QUARTER CONTINUED TO HAMPER RESULTS AND ITS NEW SMELTER AT EL PASO TEXAS FACED STARTUP DIFFICULTIES FOR THE SIX MONTHS ASARCO HAD A NET LOSS OF 55 MILLION OR 132 A SHARE COMPARED WITH A LOSS OF 432 MILLION OR 105 A SHARE THE 1992 SIXMONTH PERIOD INCLUDED A CHARGE OF 54 MILLION OR 130 A SHARE FOR THE ADOPTION OF ACCOUNTING CHANGES SALES FELL 75 TO 8756 MILLION FROM 9466 MILLION 9307270022 930727 BUSINESS BRIEF BANKERS TRUST NEW YORK CORP SERVICE TO MANAGE COLLATERAL FOR DERIVATIVES TRANSACTIONS BANKERS TRUST NEW YORK CORP SAID IT IS OFFERING A SERVICE TO HELP KEEP TRACK OF AND RECALCULATE THE COLLATERAL THAT DEALERS AND CUSTOMERS INCREASINGLY PROVIDE FOR THE FASTGROWING DERIVATIVES MARKET DERIVATIVES OFTEN INVOLVE SWAPS OR OTHER SOPHISTICATED CONTRACTS TO LOCK IN YIELDS IN ONE TYPE OF INVESTMENT BY TYING IT TO ANOTHER INVESTMENT BUT CONCERNS HAVE MOUNTED ABOUT THE RISK OF DEFAULT SO MANY DEALERS AND OTHERS ARE BEGINNING TO REQUIRE COLLATERAL AS A FORM OF GUARANTEE IN A TYPICAL SWAP TRANSACTION ONE PARTY MIGHT EXCHANGE A FIXED RATE OBLIGATION FOR A FLOATING RATE OBLIGATION THE NEW BANKERS TRUST SERVICE ESSENTIALLY MANAGES COLLATERAL FOR THIRD PARTIES AS THE VALUE OF AN AGREEMENT ALTERS WITH CHANGES IN CURRENCY VALUES INTEREST RATES OR OTHER MARKET CHANGES BANKERS TRUST BASED IN NEW YORK WILL ADVISE THE PARTIES OF THE NECESSARY COLLATERAL CHANGES THE SERVICE WAS CREATED FROM BANKERS TRUST'S INTERNAL SYSTEM FOR MONITORING THE COLLATERAL BACKING DERIVATIVES TRANSACTIONS 9307270021 930727 INTERNATIONAL YELTSIN EASES TERMS OF FORCED RUBLE EXCHANGE RUSSIAN LEADER ALSO BLOCKS ANTIPRIVATIZATION PLAN FINGERPOINTING BEGINS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN EASED THE TERMS OF THE CENTRAL BANK'S SUDDEN CURRENCY REFORM THAT HAD SHOCKED RUSSIANS AND THROWN BUSINESS INTO CONFUSION MR YELTSIN ISSUED A DECREE YESTERDAY THAT RAISED THE AMOUNT OF PRE1993 RUBLES EACH CITIZEN CAN CHANGE FOR NEW NOTES TO 100000 RUBLES FROM 35000 RUBLES AND EXTENDED THE DEADLINE FOR SUCH EXCHANGES BY THREE WEEKS UNTIL THE END OF AUGUST THE PRESIDENT WHO HAD CUT SHORT HIS VACATION TO HURRY BACK TO MOSCOW ALSO ISSUED A DECREE OVERRULING A PARLIAMENTARY RESOLUTION THAT HAD UNDERMINED THE PRIVATIZATION PROGRAM THE CENTRAL BANK'S ANNOUNCEMENT SATURDAY INVALIDATING RUBLES ISSUED BEFORE 1993 AND THE DECISION TO SLOW PRIVATIZATION WERE AMONG SEVERAL MOVES MARKING THE MOST SERIOUS CHALLENGE TO MR YELTSIN'S AUTHORITY SINCE HE WON SURPRISINGLY HIGH PUBLIC SUPPORT IN AN APRIL 25 REFERENDUM HIS TWO DECREES APPEAR TO BE AN ATTEMPT TO FIND A MIDDLE GROUND BETWEEN PRIME MINISTER VIKTOR CHERNOMYRDIN WHO BACKED THE CURRENCY CHANGE AND MINISTERS SUCH AS FINANCE MINISTER BORIS FYODOROV WHO OPPOSED IT SOME OBSERVERS WONDERED WHETHER MINISTERS WHO SUPPORT MR YELTSIN WILL TRY TO COUNTERATTACK BY PRESSURING MR YELTSIN TO USE THIS LATEST CONFRONTATION AS A REASON TO IGNORE PARLIAMENT COMPLETELY AN INDICATION OF SUCH A COUNTERATTACK CAME IN A FINANCE MINISTRY STATEMENT THAT CALLED THE CENTRAL BANK ACTION A DOWNRIGHT DECEPTION OF THE PEOPLE WHO HAD BEEN PROMISED THAT ANY CHANGE IN CURRENCY WOULD BE GRADUAL THE MINISTRY CHARGED IT WAS A PLANNED POLITICAL ACTION AIMED AT CAUSING DISSATISFACTION AMONG THE POPULATION WITH THE PRESIDENT HIS GOVERNMENT AND THEIR POLICY COURSE FINANCE MINISTER BORIS FYODOROV WHO WAS IN THE US WHEN THE MOVE WAS ANNOUNCED CALLED IT A PROVOCATION AIMED AT THE PRESTIGE OF THE STATE THE PRESIDENT AND THE GOVERNMENT IN AN INTERVIEW WITH RUSSIAN RADIO I PERSONALLY DEMAND THAT THE DECISION SHOULD BE TOTALLY ABOLISHED AS ECONOMICALLY AND POLITICALLY UNJUSTIFIED HE ADDED IN A RARE CASE OF AGREEMENT LEADERS FROM THE OTHER SIDE OF THE FENCE ALSO ATTACKED THE MOVE AND CLAIMED TO HAVE NOTHING TO DO WITH ITS PREPARATION PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV A HARSH CRITIC OF MR YELTSIN SAID ON TELEVISION BEFORE THE PRESIDENT'S DECREE THAT THE CURRENCY ACTION WAS CARRIED OUT WITHOUT PARLIAMENTARY APPROVAL AND HE THREATENED TO TAKE PARLIAMENTARY ACTION IF THE LIMIT ON THE AMOUNT THAT COULD BE CHANGED AND THE DEADLINE WEREN'T LIFTED IMMEDIATELY SIMULTANEOUSLY I EXPECT THE OFFICIALS WHO ARE TO BLAME FOR THIS ACTION WILL BE DISMISSED HE SAID IT WILL BE INTERESTING TO SEE WHO'S LEFT HOLDING THE BAG AND HOW BIG A BAG THEY'LL BE LEFT HOLDING SAYS ONE FOREIGN DIPLOMAT WITH EVERYBODY EXCEPT MR CHERNOMYRDIN DENYING RESPONSIBILITY IT IS HARD TO BE SURE WHO KNEW WHAT WHEN OFFICIALLY THE CENTRAL BANK ANSWERS TO THE PARLIAMENT BUT UNDER A RECENT AGREEMENT THE CENTRAL BANK AND FINANCE MINISTRY ARE SUPPOSED TO COORDINATE THEIR POLICIES IN PRACTICE CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO A VETERAN BANKER WHO LED THE SOVIET STATE BANK THROUGH A SIMILAR CURRENCY REFORM IN 1991 HANDLES MANY POLICY MATTERS FAIRLY INDEPENDENTLY MR CHERNOMYRDIN SAID SATURDAY AFTER THE MOVE WAS ANNOUNCED THAT THE GOVERNMENT HAD APPROVED THE DECISION IN A MEETING FRIDAY MR FYODOROV THE FINANCE MINISTER WASN'T PRESENT AS OPPOSITION TO THE MOVE MOUNTED THE CENTRAL BANK KEPT SILENT BUT IT WAS ALREADY MOVING TO SOFTEN ITS DECISION BEFORE THE PRESIDENT'S DECREE EARLY IN THE DAY A TELEGRAM WAS SENT TO REGIONAL BRANCHES OF THE BANK AND ITS RELATED SAVINGS BANKS SAYING THAT 10000 RUBLE NOTES ISSUED IN 1992 COULD BE EXCHANGED WITHOUT LIMIT MESSRS CHERNOMYRDIN AND GERASHCHENKO AND THEIR DEPUTIES HAD MET FOR THREE HOURS YESTERDAY TO DISCUSS WAYS FOR RELIEVING THE TENSION CAUSED BY THE DECISION ACCORDING TO THE NEWS AGENCY INTERFAX NO ONE BELIEVES THAT THE CENTRAL BANK WITHOUT CONSULTATION OF THE PARLIAMENT AND ADMINISTRATION COULD TAKE SUCH A MOVE SAYS KONSTANTIN ZATULIN HEAD OF A POLITICAL LOBBYING ORGANIZATION FOR BUSINESSMEN THAT OPPOSES THE MOVE HE PREDICTS CHERNOMYRDIN AND GERASHCHENKO COOKED IT UP TOGETHER TIME WILL SHOW ANOTHER THEORY MAKING THE ROUNDS IN MOSCOW SAYS THAT ION LIES BEHIND THE DECISION TO CHANGE THE CURRENCY THE CENTRAL BANK ALLEGEDLY STANDS TO GAIN BY HELPING ITS FRIENDS IN COMMERCIAL BANKS GARNER HUGE PROFITS FROM THE GAP IN PRICES BETWEEN OLD AND NEW RUBLES PRE1993 RUBLES SOLD FOR 1500 TO THE DOLLAR IN STREET TRADING COMPARED WITH A CLOSING RATE OF 9965 RUBLES ON THE MOSCOW INTERBANK CURRENCY EXCHANGE YESTERDAY FOR 1993 CURRENCY MANY SHOPS RAN OUT OF GOODS AND EVEN MORE RAN OUT OF CHANGE AT THE CENTRAL MARKET BUSINESS WAS SLOW MANNING HER STALL OF APRICOTS AND TOMATOES LYUBOV GEVORKIAN WAS MORE ANNOYED THAN WORRIED SHE DIDN'T HOLD ANY OFFICIAL IN PARTICULAR RESPONSIBLE FOR THE CONFUSION BECAUSE THERE'S NOBODY THERE IN THE GOVERNMENT SHE SAID 9307270020 930727 MUTUAL FUNDS NOW COULD BE THE TIME TO CASH OUT OF BONDS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IS IT TIME TO DROP THE BONDS SOME INVESTMENT ADVISERS ARE TELLING CLIENTS WHO OWN BALANCED PORTFOLIOS OF STOCKS AND BONDS TO SWITCH TO A MIX OF STOCKS AND CASH MONEY MARKET SECURITIES SUCH AS TREASURY BILLS COMMERCIAL PAPER AND OTHER SHORTTERM DEBT INSTRUMENTS THE SUGGESTION IS PARTLY DRIVEN BY CONCERNS THAT THE PROTRACTED BOND MARKET RALLY MAY BE LOSING STEAM THE NEXT MOVE IN INTEREST RATES IS LIKELY TO BE UP SOME OF THESE ADVISERS ARGUE AND WHEN IT HAPPENS BOND PRICES WILL FALL BUT THE ADVICE TO SHIFT INTO CASH IS ALSO PROMPTED BY RESEARCH ON LONGERTERM PERFORMANCE PROSPECTS AN INVESTOR WHO OWNS A TRADITIONAL BALANCED PORTFOLIO MADE UP OF 60 STOCK FUNDS AND 40 BOND FUNDS MAY BE ABLE TO GET SLIGHTLY BETTER RETURNS WITH A PORTFOLIO OF 75 STOCK FUNDS AND 25 MONEY MARKET FUNDS WITHOUT INCREASING THE LEVEL OF RISK WE HAVE JUST COME THROUGH THE BIGGEST RALLY IN FIXEDINCOME SECURITIES IN THE HISTORY OF MANKIND NOTES WILLIAM JOHN MIKUS A MANAGING DIRECTOR WITH FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISER WHERE CAN BONDS GO FROM HERE THE NOTION THAT A STOCKCASH MIX DOES BETTER THAN THE TRADITIONAL BALANCED PORTFOLIO WAS LAID OUT IN A 1988 STUDY BY PETER BERNSTEIN A NEW YORK ECONOMIC CONSULTANT MR BERNSTEIN FOUND THAT IN THE PERIOD FROM THE END OF 1953 TO THE MIDDLE OF 1988 THE STOCKCASH MIX OUTPERFORMED A BALANCED PORTFOLIO 64 OF THE TIME BASED ON A COMPARISON OF QUARTERLY RETURNS WHY DOES THE STOCKCASH MIX PERFORM BETTER WITHOUT AN INCREASE IN RISK MONEY MARKET SECURITIES GENERATE LOWER LONGRUN RETURNS THAN BONDS BUT WITH THE STOCKCASH PORTFOLIO THE POORER PERFORMANCE OF MONEY MARKET SECURITIES IS COMPENSATED FOR BY THE EXTRA INVESTMENT IN STOCKS MEANWHILE THE CASH PROVIDES A LOT OF STABILITY FOR THE PORTFOLIO BECAUSE UNLIKE BONDS ITS MARKET VALUE NEVER DROPS THESE DAYS MR BERNSTEIN THINKS THE STOCKCASH MIX IS ESPECIALLY ATTRACTIVE BONDS HAVE GONE ABOUT AS FAR AS THEY CAN GO IN A PERIOD WHERE BUSINESS ACTIVITY IS EXPANDING AND INTEREST RATES ARE LIKELY TO RISE SAYS MR BERNSTEIN BUT HE DOESN'T THINK CLIMBING INTEREST RATES WILL HURT STOCKS THE INCREASE IN CORPORATE PROFITS AS THE ECONOMY GROWS WILL BE ENOUGH TO SUPPORT THE STOCK MARKET IN THE FACE OF RISING INTEREST RATES HE ARGUES MR BERNSTEIN SAYS HE'S ESPECIALLY CONCERNED ABOUT LONGTERM BONDS THOSE WITH MATURITIES THAT STRETCH OUT TOWARD 30 YEARS HE SAYS INVESTORS WHO FAVOR THE STOCKCASH PORTFOLIO MAY DO EVEN BETTER IF THEY BUY SHORTTERM BONDS FUNDS RATHER THAN MONEY MARKET FUNDS CONCERNED ABOUT THE POSSIBILITY THAT INTEREST RATES MIGHT RISE DAVID DRUCKER STARTED MOVING CLIENTS OUT OF LONGERTERM BOND MUTUAL FUNDS IN EARLY 1992 AND INTO SHORTERTERM BOND FUNDS SUCH AS SCUDDER SHORT TERM BOND FUND BUT IF I THINK THERE'S A SUSTAINED INCREASE IN INTEREST RATES I DON'T WANT TO BE IN BONDS AT ALL SAYS MR DRUCKER OF MALGOIRE DRUCKER INC A BETHESDA MD INVESTMENT ADVISER IF INTEREST RATES TURN UP I'LL BE HAPPY TO GO TO CASH FINANCIAL DESIGN'S MR MIKUS SAYS THAT IN ADDITION TO THE PROSPECT OF HIGHER RETURNS THE STOCKCASH MIX OFFERS A NUMBER OF OTHER ADVANTAGES HE NOTES THAT A MUTUALFUND PORTFOLIO OF STOCKS AND CASH SHOULD BE MORE TAX EFFICIENT THAN A TRADITIONAL BALANCED PORTFOLIO HOW COME THE STOCKCASH COMBINATION SHOULD KICK OFF LESS EACH YEAR IN TAXABLE INCOME AND CAPITAL GAINS DISTRIBUTIONS THERE SHOULD ALSO BE LESS TAXACCOUNTING HASSLE BECAUSE UNLIKE WITH A BOND FUND YOU SHOULDN'T HAVE ANY CAPITAL GAINS OR LOSSES WITH A MONEY MARKET FUND WITH A MONEY FUND THERE ARE ALSO NO WORRIES ABOUT PICKING THE RIGHT TIME TO BUY OR SELL BECAUSE THERE ARE NO SHARE PRICE FLUCTUATIONS TO CONTEND WITH AND A MONEY FUND WILL USUALLY CHARGE FAR LOWER MANAGEMENT FEES THAN A BOND FUND WHEN YOU LOOK AT THE ISSUES OF MANAGEMENT FEES OF TAX EFFICIENCY AND OF LIQUIDITY THE ARGUMENT FOR 25 CASH RATHER THAN 40 BONDS IS EVEN MORE POWERFUL ARGUES MR MIKUS HE DREW UP THE SUGGESTED MUTUALFUND PORTFOLIO SHOWN IN THE CHART ACCOMPANYING THIS STORY THE PORTFOLIO IS DESIGNED FOR AN INVESTOR WITH A 10YEAR TIME HORIZON WHO'S WILLING TO TAKE ON A MODERATE AMOUNT OF RISK BUT NOT EVERYBODY IS READY TO ABANDON BONDS IN LARGE PART BECAUSE THEY ARE MORE CONCERNED ABOUT A STOCK MARKET DROP THAN A BOND MARKET TUMBLE WE DO NOT THINK THE 7525 MIX IS THE ANSWER SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH BY DROPPING YOUR BOND PORTION YOU MAY INSULATE YOURSELF AGAINST INTEREST RATE INCREASES BUT YOU'RE ALSO INCREASING YOUR STOCK PORTION AND WE THINK THAT'S MUCH MORE DANGEROUS RIGHT NOW WITH PRICEEARNINGS RATIOS SO HIGH 9307270019 930727 LAW LEGAL BEAT HISPANIC BAR GROUP KEEPS LIST OF POTENTIAL APPOINTEES READY BY KATIA HETTER STAFF REPORTER OF THE WALL STREET JOURNAL JOSEPH BACA FORTUNATO BENAVIDES AND VILMA MARTINEZ MAY NOT BE HOUSEHOLD NAMES BUT THANKS TO AN INCREASINGLY AGGRESSIVE HISPANIC BAR GROUP THEY ARE BECOMING NAMES TO BE RECKONED WITH THE HISPANIC NATIONAL BAR ASSOCIATION PLACED THESE THREE LAWYERS A NEW MEXICO SUPREME COURT JUDGE A FORMER TEXAS HIGHCOURT JUDGE AND A LOS ANGELES LAWFIRM PARTNER RESPECTIVELY ON ITS SHORT LIST OF POSSIBLE SUPREME COURT CANDIDATES WHICH WAS PRESENTED TO PRESIDENT CLINTON EARLY LAST MONTH WHILE OBVIOUSLY NO ONE ON THE LIST WAS SELECTED THIS TIME AROUND SEN JOSEPH BIDEN THE DELAWARE DEMOCRAT WHO HEADS THE HOUSE JUDICIARY COMMITTEE SAID LAST WEEK AT THE CONFIRMATION HEARINGS OF RUTH BADER GINSBURG THAT HE HOPED THE NEXT NOMINEE WOULD BE OF HISPANIC BACKGROUND HE LATER ADDED THAT I DON'T THINK WE ARE GOING TO HAVE TO WAIT MUCH LONGER AT LEAST THAT IS MY HOPE AND EXPECTATION THE HISPANIC BAR GROUP WHICH SAYS IT HAS 20000 MEMBERS ALSO HAS COMPILED A BROADER LIST OF POTENTIAL APPOINTEES TO THE FEDERAL COURTS AND ANOTHER FOR JUSTICE DEPARTMENT SLOTS LULA RODRIGUEZ ASSISTANT TO US ATTORNEY GENERAL JANET RENO SAYS SOME OF THE NAMES PRESENTED TO MS RENO AT A RECENT MEETING ARE BEING SERIOUSLY CONSIDERED THE GROUP HEADED BY GOYA FOODS INC GENERAL COUNSEL CARLOS G ORTIZ IS WORKING ESPECIALLY HARD IN COMMUNITIES WITH LARGE HISPANIC POPULATIONS BUT RELATIVELY FEW HISPANIC LEGAL OFFICIALS SUCH AS FLORIDA CALIFORNIA AND TEXAS ACCORDING TO THE BAR'S 1992 SURVEY HISPANICS IN FLORIDA 12 OF THE POPULATION HELD 32 OF THE FEDERAL JUDGESHIPS CALIFORNIA HISPANICS AT 297 OF THE POPULATION HELD 83 OF THE FEDERAL JUDGESHIPS IN TEXAS HISPANICS HELD 125 OF THE FEDERAL JUDGESHIPS BUT MADE UP 295 OF THE POPULATION I THINK A PIPELINE OF QUALIFIED LATINOS HAS BEEN BUILDING UP AND THE BOTTLE IS OPEN FOR THE FIRST TIME IN 12 YEARS SAYS KEN KIMERLING ACTING PRESIDENT AND GENERAL COUNSEL OF THE PUERTO RICAN LEGAL DEFENSE AND EDUCATION FUND THERE IS A BACKLOG OF WORTHY PEOPLE SINCE FOR 12 YEARS THERE WASN'T MUCH MOVEMENT ON LATINOS BLACKS OR WOMEN WHILE WORKING ON PLACING HISPANICS INTO PUBLIC OFFICES THE BAR GROUP ALSO IS AIMING AT LAW SCHOOLS THAT IT BELIEVES SHOULD HAVE MORE HISPANIC PROFESSORS THAN THEY DO BASED ON THEIR SIZE THE ETHNIC MIX OF THEIR STUDENT POPULATIONS AND THEIR LOCATION EVERY YEAR THE GROUP NAMES SCHOOLS IT BELIEVES HAVE POOR RECORDS IN THIS AREA AND PUBLICIZES ITS LIST TEN OF THE 20 LAW SCHOOLS IT HAS LISTED IN THE LAST FIVE YEARS HAVE HIRED PERMANENT LATINO FACULTY SINCE BEING MENTIONED SAYS MICHAEL OLIVAS AN ASSOCIATE DEAN AT THE UNIVERSITY OF HOUSTON LAW CENTER WHO CHAIRS THE BAR'S LAW PROFESSOR COMMITTEE THE NUMBER OF HISPANIC LAW FACULTY NATIONWIDE HAS JUMPED FROM 22 TO ABOUT 100 IN A DECADE HE ADDS I DON'T CARE IF THE UNIVERSITY OF VERMONT HAS A HISPANIC OR NOT ALTHOUGH THEY DID HAVE THREE VISITING PROFESSORS DURING SKI SEASON SAYS MR OLIVAS BUT LAW SCHOOLS IN FLORIDA WHO SAY THEY CAN'T FIND A CUBAN TO HIRE AREN'T LOOKING POLITICALLY PART OF THE BAR GROUP'S STRATEGY HAS BEEN NOT TO IDENTIFY ITSELF WITH ANY ONE SET OF LEGAL PRINCIPLES OR POLITICAL VIEWPOINTS AND IT REJECTS THE NOTION THAT ONLY DEMOCRATS APPOINT HISPANICS OR THAT ALL HISPANIC APPOINTEES ARE DEMOCRATS MEMBERS POINT TO THE BAR'S 1992 LOBBYING IN SUPPORT OF SONIA SOTOMAYOR PRESIDENT BUSH'S NOMINEE FOR THE FEDERAL COURT IN NEW YORK JUDGE SOTOMAYOR WAS NEW YORK'S FIRST HISPANIC FEDERAL JUDGE THEY HAVE EVEN GAINED THE EAR OF ONE OF THE SENATE'S MOST CONSERVATIVE REPUBLICANS ORRIN HATCH ANNA CABRAL SEN HATCH'S DEPUTY STAFF DIRECTOR FOR THE SENATE JUDICIARY COMMITTEE AGREES THAT THE GROUP HAS BEEN VERY HELPFUL WITH PRESENTING SEN HATCH WITH A NUMBER OF QUALIFIED CANDIDATES TO THE FEDERAL BENCH AND KEEPING PARTISAN POLITICS OUT OF THE DISCUSSION THEY ARE GROWING IN TERMS OF STATURE BECAUSE THEY DON'T TAKE THE NARROW PARTISAN VIEW SAYS MS CABRAL THEY TRY VERY HARD TO BE FAIR BUT ARE SMART ENOUGH TO KNOW POLITICS IS A BIG PART OF THE NOMINATION DECISION HOWEVER THE BAR GROUP ISN'T WITHOUT SOME INTERNAL DIVISIONS WHICH STEM FROM SOMETIMESDIFFERING PERSPECTIVES AMONG LAWYERS WITH FAMILY ORIGINS IN CUBA MEXICO PUERTO RICO THE DOMINICAN REPUBLIC AND MANY OTHER SPANISHSPEAKING COUNTRIES POLITICS IN PARTICULAR DIVIDE SOME MEMBERS PARTICULARLY THE USUALLY MORE CONSERVATIVE AND REPUBLICAN CUBANS FROM THE OTHERS RAUL CASIO PAST PRESIDENT OF THE CUBAN AMERICAN BAR ASSOCIATION AND A PARTNER IN THE MIAMI LAW FIRM OF HOLLAND & KNIGHT DOES THINK THE HISPANIC BAR GROUP IS MORE LIBERAL THAN THE CUBANAMERICAN BAR BUT HE CLAIMS THAT WHEN THE BROADER HISPANIC GROUP ADDRESSES ISSUES RELEVANT TO ALL HISPANICS THE CUBANAMERICAN BAR SUPPORTS SUCH EFFORTS WHAT THEY DID WITH THE SUPREME COURT WAS FANTASTIC ADDS MR CASIO THEY DID WORK A LOT OF CONGRESSIONAL STAFFERS SHOULD BE DOING OTHER MEMBERS OF THE GROUP'S SUPREME COURT SHORT LIST INCLUDE JOSE CABRANES CHIEF JUDGE ON THE US DISTRICT COURT FOR CONNECTICUT DANIEL MORALES TEXAS ATTORNEY GENERAL CRUZ REYNOSO UCLA LAW PROFESSOR AND FORMER CALIFORNIA SUPREME COURT JUSTICE AND RICARDO URBINA A JUDGE ON THE SUPERIOR COURT FOR THE DISTRICT OF COLUMBIA ATLANTA LAW FIRM SUTHERLAND ASBILL & BRENNAN ADDED 20 LAWYERS IN ITS ATLANTA AUSTIN TEXAS WASHINGTON AND NEW YORK OFFICES THE NEW LAWYERS INCLUDE BARRETT K HAWKS CADA T KILGORE III AND JAMES A ORR FORMERLY PARTNERS WITH PAUL HASTINGS JANOFSKY & WALKER THEY JOINED SUTHERLAND ASBILL'S ATLANTA OFFICE AS PARTNERS FORMER PAUL HASTINGS PARTNER N BETH EMERY JOINED THE WASHINGTON OFFICE ALL FOUR WILL CONTINUE THEIR WORK IN PUBLIC UTILITY AND ENERGY LAW JOEL A ADLER AND ROBERT S FRANKLIN FORMERLY PARTNERS AT NEW YORK LAW FIRM COUDERT BROTHERS JOINED SUTHERLAND ASBILL IN NEW YORK AS PARTNERS MR ADLER WILL CONTINUE HIS PRACTICE IN INTERNATIONAL CORPORATE LAW AND MR FRANKLIN WILL CONTINUE WITH INTERNATIONAL TAXATION BILL BRADLEY SUTHERLAND ASBILL'S MANAGING PARTNER IN ATLANTA SAID THE NEW ATTORNEYS WILL EXPAND THE LAW FIRM'S TAX BUSINESS ENVIRONMENTAL ENERGY AND PUBLIC UTILITY AND LITIGATION PRACTICES THE ADDITIONS BRING THE FIRM'S TOTAL NUMBER OF LAWYERS TO 250 WHO'S NEWS EQUITABLE COS SAID ROBERT E GARBER 44 YEARS OLD WILL BECOME GENERAL COUNSEL OF EQUITABLE AND ITS SUBSIDIARY EQUITABLE LIFE ASSURANCE SOCIETY OF THE US MR GARBER SENIOR VICE PRESIDENT AND DEPUTY GENERAL COUNSEL SUCCEEDS STEPHEN J FRIEDMAN WHO WILL REJOIN NEW YORK LAW FIRM DEBEVOISE & PLIMPTON AS A PARTNER MR FRIEDMAN 55 WILL SPECIALIZE IN BANKS SECURITIES FIRMS AND INSURANCE COMPANIES HACKERS SENTENCED TWO MEMBERS OF A RING OF COMPUTER HACKERS WHO IDENTIFIED THEMSELVES AS MOD FOR MASTERS OF DECEPTION OR MASTERS OF DISASTER WERE SENTENCED IN FEDERAL COURT IN NEW YORK TO SIX MONTHS IN PRISON AND SIX MONTHS OF HOME DETENTION PAUL STIRA AND ELIAS LADOPOLOUS BOTH 23 YEARS OLD PLEADED GUILTY IN MARCH TO CONSPIRACY IN A SCHEME TO BREAK INTO CORPORATE AND UNIVERSITY COMPUTER SYSTEMS THEY ALSO WERE ORDERED TO DO 750 HOURS OF COMMUNITY SERVICE LAST MONTH ANOTHER MOD MEMBER WAS SENTENCED TO A YEAR AND A DAY IN PRISON TWO OTHERS AWAIT SENTENCING 9307270018 930727 CUMMINS' PROFIT SURGED IN QUARTER STOCK PRICE SAGS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBUS IND CUMMINS ENGINE CO'S STOCK PRICE TUMBLED YESTERDAY DESPITE THE DIESELENGINE MAKER'S REPORTING THAT SECONDQUARTER EARNINGS MORE THAN DOUBLED FROM THE YEAR EARLIER EARNINGS WERE JUST A FEW PENNIES A SHARE BELOW WHAT WALL STREET HAD ANTICIPATED AND THE STOCK'S PRICE SKIDDED 650 OR 9 TO 8250 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE INVESTORS APPARENTLY WERE MORE DISHEARTENED BY THE COMPANY'S FORECAST OF AN EARNINGS DECLINE FOR THE CURRENT THIRD QUARTER HOWEVER RATHER THAN BY THE LATEST QUARTER'S FAILURE TO MEET EXPECTATIONS THERE ALSO WAS SOME SENTIMENT THAT NERVOUS INVESTORS READ MORE BAD NEWS INTO THE COMPANY'S STATEMENTS THAN WAS MERITED CUMMINS HAD NET INCOME OF 482 MILLION OR 265 A PRIMARY SHARE UP SHARPLY FROM THE 188 MILLION OR 1 A SHARE THE YEAR BEFORE THE EARNINGS SURGE CAME ON A 15 SALES INCREASE TO 109 BILLION FROM 9481 MILLION CUMMINS HAS BEEN BENEFITING RECENTLY FROM THE REBOUND THAT BEGAN IN MID1992 FOR THE NORTH AMERICAN HEAVYTRUCK INDUSTRY ALSO HELPING EARNINGS WERE MANUFACTURING EFFICIENCIES THE COMPANY HAS ACHIEVED THROUGH COSTLY BUT NOW ALMOST COMPLETED FACILITY UPGRADES INCREASING SALES INTO THE MEDIUMDUTY COMMERCIALTRUCK MARKET THROUGH A YEAROLD AGREEMENT WITH FORD MOTOR CO ALSO HAS HELPED BOOST RECENT EARNINGS YESTERDAY'S STOCKPRICE DECLINE WAS LARGELY FUELED BY CUMMINS' PROJECTION THAT IT NOW EXPECTS THIRDQUARTER RESULTS TO COME IN BELOW THOSE OF EITHER THE JUSTENDED PERIOD OR THOSE OF THE FIRST QUARTER WHEN IT POSTED PERSHARE NET OF 224 AMONG THE REASONS CUMMINS CITED WAS ITS EXPECTATION THAT ITS INCREASINGLY IMPORTANT SALES OF LIGHT DIESEL ENGINES TO CHRYSLER CORP WILL BE SUBSTANTIALLY REDUCED IN THE THIRD QUARTER THE LATEST PERIOD'S EARNINGS BENEFITED FROM INCREASED SALES INTO MOST OF CUMMINS MAJOR MARKETS INCLUDING HEAVY AND MEDIUMWEIGHT TRUCKS INDUSTRIAL EQUIPMENT AND INDUSTRIAL ELECTRICALGENERATING EQUIPMENT THE COMPANY SAID BUT IT ALSO SAID THAT IT HAD EXPERIENCED DEPRESSED OR DECLINING DEMAND IN SOME INTERNATIONAL MARKETS PARTICULARLY IN MEXICO IT SAID IT EXPECTS SALES TO MEXICO AND OTHER OVERSEAS MARKETS TO REMAIN DEPRESSED JOHN MCGINTY FIRST BOSTON ANALYST SAID HE IS FINETUNING HIS PROJECTION FOR CUMMINS 1993 EARNINGS TO ABOUT 880 A FULLY DILUTED SHARE FROM 925 A SHARE 9307270017 930727 WHO'S NEWS INFORMATION AMERICA INC INFORMATION AMERICA INC ATLANTA DONALD E GENE ELLIS JR 42 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS ONLINE DOCUMENT SEARCH COMPANY MR ELLIS SUCCEEDS REGINALD BANKS WHO LEFT IN MAY TO PURSUE OTHER INTERESTS THE COMPANY SAID IN AUGUST 1992 MR ELLIS LEFT HIS PREVIOUS JOB AS CHIEF FINANCIAL OFFICER OF KNOWLEDGEWARE INC AN ATLANTABASED SOFTWARE MAKER 9307270016 930727 MARGARETTEN ALTERS CREDIT LINES PERTH AMBOY NJ MORTGAGE BANKING CONCERN MARGARETTEN FINANCIAL CORP SAID IT RENEGOTIATED TWO BANK CREDIT LINES TOTALING 605 MILLION REDUCING INTEREST COSTS THE COMPANY'S MARGARETTEN & CO UNIT NEGOTIATED A 555 MILLION MORTGAGE WAREHOUSE REVOLVING CREDIT LINE ON JUNE 21 REPLACING A 375 MILLION CREDIT FACILITY MARGARETTEN ALSO SAID IT REFINANCED ITS TERM AND REVOLVING CREDIT FACILITY ON JUNE 18 INCREASING ITS REVOLVING CREDIT LINE TO 50 MILLION FROM 14 MILLION 9307270015 930727 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE PEROT IN INTERVIEW SUGGESTS CONGRESS MAP NEW TAX BILL TO ELIMINATE DEFICIT BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROSS PEROT URGED CONGRESS TO PULL THE PLUG ON THE CLINTON ADMINISTRATION ECONOMIC PLAN THAT LAWMAKERS ARE STRUGGLING TO COMPLETE AND TO START OVER ON A NEW ONE THAT WILL ELIMINATE THE DEFICIT RATHER THAN JUST REDUCE IT IT JUST DOESN'T DO THE JOB MR PEROT SAID IN A TELEPHONE INTERVIEW FROM HIS DALLAS OFFICE LET'S BACK OFF AND TRY AGAIN BUT THIS TIME LET'S COME UP WITH ONE WHERE THE LINES CROSS MR PEROT HAS BEEN KEEPING A RELATIVELY LOW PROFILE AS HOUSE AND SENATE NEGOTIATORS CRAFT A COMPROMISE VERSION OF THE PRESIDENT'S TAX INCREASES AND SPENDING CUTS WHICH ARE DESIGNED TO REDUCE FEDERAL DEFICITS BY 500 BILLION OVER THE NEXT FIVE YEARS BUT THE FORMER INDEPENDENT PRESIDENTIAL CANDIDATE DECLARED YESTERDAY THAT HE AND HIS ORGANIZATION SEE A FATAL FLAW IN ANY PLAN THAT DOESN'T PRODUCE A BALANCED BUDGET THE COMPROMISE LIKELY TO EMERGE FROM CONGRESS WOULD CUT THE DEFICIT TO A LITTLE OVER 200 BILLION FROM MORE THAN 360 BILLION PROJECTED BY 1998 BUT WOULDN'T ELIMINATE IT ENTIRELY UNLIKE MANY CONGRESSIONAL REPUBLICANS WHO HAVE EMBRACED HIS CRITICISM OF THE CLINTON PLAN MR PEROT REITERATED THAT HE IS ABSOLUTELY WILLING TO ARGUE FOR TAX INCREASES INCLUDING A GASOLINE TAX RISE PROVIDED THEY ARE PART OF A PLAN THAT ELIMINATES THE DEFICIT IF WE HAVE TO GO ON A GASOLINE TAX THE SOONER WE GO THERE THE BETTER HE SAID IN HIS PRESIDENTIAL CAMPAIGN MR PEROT ADVOCATED INCREASING GASOLINE TAXES 50 CENTS A GALLON OVER FIVE YEARS FAR MORE THAN THE INCREASE OF BETWEEN FOUR AND NINE CENTS A GALLON NOW BEING DEBATED BUT HE INSISTED THAT THE PROBLEM WITH THE PENDING PROGRAM IS THAT SPENDING ISN'T CUT ENOUGH WHILE DECLINING TO DISCUSS HIS PRECISE INTENTIONS MR PEROT IMPLIED HE MAY BE MORE VOCAL ONCE NEGOTIATORS FINISH A HOUSESENATE CONFERENCE ON THE PLAN AND SEND A FINAL VERSION TO THE FULL CONGRESS I DON'T THINK THERE'S A WHOLE LOT YOU CAN GET DONE IN CONFERENCE PROBABLY MR PEROT SAID THE OPPORTUNITY WILL BE WHEN IT COMES TO A VOTE PRESIDENT CLINTON'S AIDES DISMISSED THE CRITICISM ARGUING THAT THEIR PLAN IS BETTER AT DEFICIT CUTTING THAN ANY MR PEROT HAS PUT FORWARD THE PRESIDENT'S PLAN REDUCES THE DEFICIT MORE THAN THE PEROT PLAN SAID PRESIDENTIAL ADVISER PAUL BEGALA IT HAS MORE CUTS THAN THE PEROT PLAN AND IT HAS MUCH MUCH LESS TAX ON THE MIDDLE CLASS AND MR CLINTON HIMSELF IN AN APPEARANCE IN CHICAGO ARGUED THAT THERE COMES A TIME WHEN DELAY TO GET A SLIGHTLY BETTER DECISION IS WORSE THAN ACTION TO GET A PRETTY GOOD DECISION WE HAVE REACHED THAT TIME MR PEROT HAS STATED HIS DISSATISFACTION WITH THE CLINTON ECONOMIC BLUEPRINT BEFORE SO HIS LATEST COMMENTS ALONE WON'T SURPRISE LAWMAKERS STILL BECAUSE HE HAS SUCH A LARGE FOLLOWING AND BECAUSE THE COMING CONGRESSIONAL VOTES ON THE ECONOMIC PLAN PROMISE TO BE EXCEEDINGLY CLOSE HE COULD CREATE A REAL HEADACHE FOR THE WHITE HOUSE IF HE CHOOSES TO LAUNCH A CONCERTED EFFORT TO SWAY LAWMAKERS OVER THE NEXT TWO WEEKS MR PEROT STRONGLY SUGGESTED THAT UNLESS THERE ARE MAJOR CHANGES IN THE ECONOMIC PLAN MEMBERS OF HIS UNITED WE STAND AMERICA ORGANIZATION MIGHT SEEK TO PUNISH THOSE WHO SUPPORT IT IN CONGRESS MY CONCERN IS THAT THERE'S GOING TO BE A REAL PRICE PAID IN 1994 BY THE PEOPLE WHO PUT THROUGH THIS PLAN MR PEROT SAID THE TEXAS BILLIONAIRE WHO WON 19 OF THE VOTE IN THE PRESIDENTIAL ELECTION MADE IT CLEAR THAT ELIMINATING THE BUDGET DEFICIT REMAINS THE PARAMOUNT PRIORITY FOR HIM AND HIS ORGANIZATION USING ONE OF THE HOMEY FIGURES OF SPEECH THAT HAVE BECOME HIS TRADEMARK MR PEROT ASSERTED THAT SEEING A PLAN THAT DOESN'T ELIMINATE THE DEFICIT IS LIKE FINDING A BOAT WITH A BIG HOLE IN THE BOTTOM OUR INTEREST STOPS RIGHT THERE STILL DESPITE HIS ABILITY TO STRIKE A RESPONSIVE CHORD ON THE DEFICIT ISSUE MANY EXPERTS THINK MR PEROT'S OWN CLAIMS DON'T ADD UP HE PRESENTED A PLAN DURING LAST YEAR'S PRESIDENTIAL CAMPAIGN THAT CLAIMED TO ERASE THE DEFICIT BY 1998 THROUGH A COMBINATION OF MORE THAN 300 BILLION IN TAX INCREASES AND DEEP CUTS BOTH IN ENTITLEMENT SPENDING MONEY THAT IS PAID OUT UNDER A FORMULA SET BY LAW AND DISCRETIONARY SPENDING AS WELL BUT EVEN THE PLAN'S AUTHOR NOW ACKNOWLEDGES THAT IT WOULDN'T COME CLOSE TO TACKLING CURRENTLY PROJECTED DEFICITS BECAUSE OF A SLUGGISH ECONOMY AND SOARING HEALTHCARE COSTS THE DEFICIT SITUATION HAS GROWN MUCH WORSE THAN IT APPEARED LAST SUMMER FOR INSTANCE MR PEROT'S PLAN ANTICIPATED A DEFICIT OF 226 BILLION IN 1997 WITHOUT NEW DEFICITCUTTING ACTION CURRENT COMPARABLE PROJECTIONS FROM THE CONGRESSIONAL BUDGET OFFICE FORESEE A DEFICIT OF 319 BILLION THEN AS A RESULT LAST YEAR'S PEROT PLAN NOW WOULD FALL OVER 400 BILLION SHORT OF WIPING OUT DEFICITS OVER THE COURSE OF THE NEXT FIVE YEARS SAYS JOHN WHITE THE PLAN'S PRINCIPAL AUTHOR WHO NOW IS AT HARVARD UNIVERSITY IN ADDITION THE PLAN NEVER SPELLED OUT THE POLITICALLY PAINFUL SPECIFICS OF ITS PROPOSED CUTS IN ENTITLEMENT PROGRAMS FOR INSTANCE IT CALLS FOR FINDING 1413 BILLION IN SAVINGS FROM COST CONTAINMENT IN MEDICARE AND MEDICAID OVER THE NEXT FIVE YEARS WITHOUT SPECIFYING HOW THOSE SAVINGS WOULD BE PRODUCED IN THE INTERVIEW MR PEROT SAID HE REMAINS WILLING TO ARGUE PUBLICLY FOR ENTITLEMENT CUTS IF THE CUTS ARE PART OF A PLAN THAT ELIMINATES THE DEFICIT WHERE WE HAVE TO GO ON ENTITLEMENTS WE HAVE TO GO MR PEROT SAID THE SOONER WE GO THERE THE BETTER BUT MR PEROT ALSO ASSERTED THAT THERE IS A LOT OF WASTE IN GOVERNMENT SPENDING THAT ISN'T BEING ADDRESSED AND HE DISMISSED THE NOTION THAT WHATEVER THE CLINTON PLAN'S DEFICITCUTTING SHORTCOMINGS IT WOULD BE BETTER TO PASS IT NOW AS A FIRST STEP AND IMPROVE ON IT DOWN THE ROAD SUCH AN APPROACH HE SAID WOULD BE LIKE DECIDING TO PUT A BAD COAT OF PAINT ON THE HOUSE THIS YEAR AND COME BACK AND PUT A BETTER COAT ON NEXT YEAR 9307270014 930727 TECHNOLOGY CONVEX COMPUTER 2NDQUARTER LOSS WAS 418 MILLION BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL RICHARDSON TEXAS CONVEX COMPUTER CORP REPORTED A LOSS OF 418 MILLION OR 167 A SHARE FOR ITS SECOND QUARTER AFTER A 315 MILLION CHARGE FOR A RESTRUCTURING THAT INCLUDES AN ANTICIPATED 16 REDUCTION IN ITS WORK FORCE THE SUPERCOMPUTER MAKER SQUEEZED BY A WEAK MARKET AND NEW COMPETITION WARNED OF A LOSS LAST MONTH AND PREDICTED REVENUE WOULD FALL BELOW 55 MILLION FOR THE PERIOD ENDED JUNE 30 REVENUE ACTUALLY FELL TO 451 MILLION FROM 575 MILLION IN THE 1992 PERIOD CONVEX POSTED NET INCOME IN THE SECOND QUARTER LAST YEAR OF 800000 OR THREE CENTS A SHARE IT WAS THE COMPANY'S FIRST QUARTERLY LOSS SINCE 1991 AND A MUCH WIDER DEFICIT THAN ANALYSTS HAD EXPECTED THE MEAN ESTIMATE OF ANALYSTS FOR THE QUARTER WAS A LOSS OF ONLY TWO CENTS A SHARE FAR NARROWER THAN THE LOSS OF 42 CENTS A SHARE THE COMPANY REPORTED BEFORE THE EFFECTS OF THE 125ASHARE RESTRUCTURING CHARGE CONVEX SAID THAT BY THE FOURTH QUARTER ITS RESTRUCTURING WOULD REDUCE OPERATING COSTS BY 22 MILLION ANNUALLY WE CONTINUE TO FACE A VERY DIFFICULT BUSINESS ENVIRONMENT SAID ROBERT J PALUCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER THIS MARKS THE THIRD STRAIGHT QUARTER THAT ANALYSTS HAVE OVERESTIMATED CONVEX'S EARNINGS AND THE EFFECTS OF A DISMAL SUPERCOMPUTER MARKET CAUSED BY A SLOWDOWN IN ECONOMIES WORLDWIDE AND A REDUCTION IN FEDERAL GOVERNMENT AND DEFENSE CONTRACTS THE MARKET FOR THE COMPANY'S MIDRANGE SUPERCOMPUTERS ALSO HAS BECOME INCREASINGLY CROWDED AS WORKSTATION MAKERS COME UP WITH MOREPOWERFUL MACHINES AND OTHER SUPERCOMPUTER MAKERS SELL MORE LOWEND MACHINES FOR THE FIRST HALF CONVEX ALSO POSTED A LOSS OF 418 MILLION OR 167 A SHARE ON REVENUE OF 1042 MILLION THAT COMPARED WITH YEAREARLIER NET OF 12 MILLION OR FIVE CENTS A SHARE ON REVENUE OF 112 MILLION ON THE NEW YORK STOCK EXCHANGE CONVEX CLOSED DOWN 125 CENTS TO 4625 YESTERDAY THE COMPANY RELEASED ITS RESULTS AFTER THE CLOSE OF TRADING 9307270013 930727 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 TORONTO DOMINION BANK NEW YORK BRANCH 150 MILLION ISSUE OF SUBORDINATED FLOATINGRATE NOTES DUE AUG 4 2003 WERE PRICED THROUGH DEALERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED TO FLOAT AT THE THREEMONTH LONDON INTERBANK OFFERED RATE LIBOR AND HAS A 41 FLOOR THE NOTES WILL BE RESET QUARTERLY THREEMONTH LIBOR IS CURRENTLY 3313 THE ISSUE IS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP GEORGIA POWER CO 125 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2023 WERE WON IN COMPETITIVE BIDDING BY DEALERS LED BY PRUDENTIAL SECURITIES INC THE BONDS WERE REOFFERED WITH A 755 COUPON AT 98829 TO YIELD 765 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONREFUNDABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 945 BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P GEORGIA POWER IS A UNIT OF SOUTHERN CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE AUG 9 1996 WERE PRICED AT PAR TO YIELD 465 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED 14 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GEORGIA POWER CO 75 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2003 WERE WON IN COMPETITIVE BIDDING BY DEALERS LED BY PRUDENTIAL SECURITIES INC THE BONDS WERE REOFFERED WITH A 635 COUPON AT 987 TO YIELD 6529 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P GEORGIA POWER IS A UNIT OF SOUTHERN CO MOUNTAIN PARKS FINANCIAL CORP AN INITIAL OFFERING OF 800000 COMMON SHARES WAS PRICED AT 925 EACH THROUGH UNDERWRITERS LED BY DAIN BOSTWORTH AUTOMOTIVE INDUSTRIES HOLDING INC AN OFFERING OF 4250000 COMMON SHARES WAS PRICED AT 2450 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY SCANA CORP AN OFFERING OF 13 MILLION COMMON SHARES WAS PRICED AT 4850 A SHARE THROUGH UNDERWRERS LED BY PAINEWEBBER AND ROBINSONHUMPHREY CO FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1576 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993160 IS BACKED BY THE AGENCY'S 30YEAR 6 1/2 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY SMITH BARNEY HARRIS UPHAM & CO THE OFFERING SERIES 1993 156 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 2001 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES G018 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION'S 5 CONSTANTMATURITY TREASURY INDEX ADJUSTABLERATE MORTGAGES FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1993 152 IS BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES KINGDOM OF SWEDEN SOVEREIGN 250 MILLION OF 7 EUROBONDS DUE DEC 23 1998 AT ISSUE PRICE 100825 VIA SG WARBURG SECURITIES LTD AND UBS LTD REOFFERED AT 9920 TO YIELD 717 A SPREAD OF 36 BASIS POINTS ABOVE COMPARABLE UK GILT FEES 1/4 POINT HEWLETTPACKARD FINANCE CO US PARENT 100 MILLION OF 7 1/8 EUROBONDS DUE DEC 23 1998 AT ISSUE PRICE 10151 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9991 TO YIELD 713 A MARGIN OF 30 BASIS POINTS OVER COMPARABLE UK GILT FEES 1 7/8 POINTS HEWLETTPACKARD FINANCE IS A UNIT OF HEWLETTPACKARD CO COATS VIYELLA PLC UK 756 MILLION OF CONVERTIBLE EUROBONDS DUE AUG 9 2003 AT ISSUE PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY FROM SEPT 20 1993 TO AUG 2 2003 AT CONVERSION PRICE 275 PENCE A 1905 PREMIUM OVER MONDAY'S MIDDLE MARKET SHARE PRICE OF 231 PENCE BONDS CALLABLE AUG 31 1998 OR EARLIER IF 85 OF BONDS HAVE BEEN CONVERTED FEES 2 1/2 POINTS INTEREST PAYABLE SEMIANNUALLY ANGLIAN WATER PLC UK 65 MILLION OF 6 1/2 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE AUG 24 1998 AT ISSUE PRICE 111 1/2 VIA J HENRY SCHRODER WAGG & CO LTD BONDS PRICED TO YIELD ABOUT 70 BASIS POINTS ABOVE COMPARABLE UK GILT EACH 5000 BOND HAS 1127 WARRANTS ATTACHED EACH WARRANT EXERCISABLE TO BUY ONE ORDINARY SHARE OF THE COMPANY FROM OCT 4 1993 TO AUG 24 1998 AT EXERCISE PRICE 495 PENCE A 5096 PREMIUM ABOVE REFERENCE PRICE FOR SHARE FEES 2 1/4 POINTS ODAKYU ELECTRIC RAILWAY CO JAPAN 20 BILLION YEN OF 15 CONVERTIBLE EUROBONDS DUE SEPT 30 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC BONDS CONVERTIBLE INTO ORDINARY SHARES OF COMPANY AT 2 1/2 INDICATED PREMIUM MONDAY'S CLOSING SHARE PRICE 825 YEN CONVERTIBLE FROM AUG 24 1998 TO SEPT 18 1998 BONDS CALLABLE FROM OCT 1 1994 AT 102 WITH PRICE DECLINING BY 1/2 POINT ANNUALLY TO 100 1/2 SUBJECT TO PREVAILING SHARE PRICE BEING 130 OF CONVERSION PRICE TERMS FIXED AUG 2 FEES 2 1/2 POINTS LESS SPECIAL FEE OF 035 POINT FOR LEAD MANAGER INTEREST PAYABLE SEMIANNUALLY TAISEI CORP JAPAN 20 BILLION YEN OF 405 EUROBONDS DUE NOV 12 1997 AT ISSUE PRICE 101275 VIA YAMAICHI INTERNATIONAL EUROPE LTD REOFFERED AT 9995 TO YIELD 406 TO MATURITY PUT OPTION EXERCISABLE AT PAR ON NOV 12 1996 FEES 1 5/8 POINTS TAISEI CORP JAPAN 10 BILLION YEN OF 480 EUROBONDS DUE NOV 12 1998 AT ISSUE PRICE 101 5/8 VIA NIKKO EUROPE PLC REOFFERED AT 100075 TO YIELD 478 FEES 1 7/8 POINTS 9307270012 930727 ECONOMY BILATERAL PANEL REJECTS US DECISION THAT SPURRED TARIFFS ON CANADA WOOD BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A JOINT DISPUTE PANEL REJECTED A US DECISION THAT HAD TRIGGERED TARIFFS ON IMPORTS OF CANADIAN SOFTWOOD LUMBER JOLTING THE US INDUSTRY AND GIVING MORE AMMUNITION TO OPPONENTS OF THE NORTH AMERICAN FREETRADE PACT THE REJECTION BY THE FIVEMEMBER PANEL IS BAD NEWS FOR THE US SOFTWOOD LUMBER INDUSTRY WHICH HAS BEEN PUSHING FOR TARIFFS ON CANADIAN IMPORTS THE US INDUSTRY HAS ACCUSED CANADA OF UNFAIR TRADE PRACTICES AS MAJOR LUMBER PRODUCERS SUCH AS ATLANTABASED GEORGIAPACIFIC CORP FACE FINANCIAL DIFFICULTIES THE PANEL'S ACTION ALSO PUTS PRESSURE ON THE CLINTON ADMINISTRATION WHICH WANTS TO USE THE DISPUTE RESOLUTION PROCEDURE AS A MODEL TO SETTLE ENVIRONMENTAL AND LABOR DISAGREEMENTS ARISING FROM THE NORTH AMERICAN FREE TRADE AGREEMENT NEGOTIATORS FROM THE US CANADA AND MEXICO HOPE TO WRAP UP NEGOTIATIONS ON THESE ISSUES BY THE END OF NEXT WEEK US NEGOTIATORS ALREADY ARE WALKING A TIGHTROPE TRYING TO SATISFY TRADE HAWKS ON CAPITOL HILL WHO WANT TOUGH DISPUTE RESOLUTION MEASURES AND OTHERS WHO FEAR SUCH ARBITRATION PANELS COULD OVERRULE US GOVERNMENT DECISIONS AS HAPPENED YESTERDAY SOME LAWMAKERS TAKE BOTH SIDES SEN MAX BAUCUS D MONT HAS BEEN PUSHING THE ADMINISTRATION TO TAKE A HARD LINE ON ENVIRONMENTAL NEGOTIATIONS WHILE HE ALSO CRITICIZED YESTERDAY'S DECISION BY THE USCANADIAN ARBITRATION PANEL FOR ALLEGEDLY FAILING TO APPLY THE SAME STANDARD AS WOULD A US COURT THE ARBITRATION PANEL WAS SET UP UNDER AN EARLIER USCANADA FREE TRADE PACT US TRADE REPRESENTATIVE MICKEY KANTOR MEETS WITH HIS CANADIAN AND MEXICAN COUNTERPARTS THURSDAY IN WASHINGTON TO TRY TO SETTLE THE ARBITRATION ISSUE AS WELL AS OTHERS ARISING FROM NAFTA THE US INSISTS THAT IT RETAIN THE ABILITY TO LEVY TRADE SANCTIONS IN CASES WHERE CANADA OR MEXICO FLOUT THEIR LABOR OR ENVIRONMENTAL LAWS BUT CANADA AND MEXICO HAVE RESISTED THAT DEMAND AS AN INFRINGEMENT ON THEIR SOVEREIGNTY PRESSURE IS MOUNTING AGAINST THE ADMINISTRATION'S EFFORTS TO GET A CONGRESSIONAL BLESSING SO NAFTA CAN TAKE EFFECT BY ITS SLATED JAN 1 1994 STARTUP DATE REPS DAVID BONIOR D MICH MARCY KAPTUR D OHIO AND COLLIN PETERSON D MINN ALONG WITH SOME 100 OTHER SIGNATORIES ARE SENDING PRESIDENT CLINTON A LETTER URGING HIM TO INTRODUCE HEALTHCARE REFORM LEGISLATION BEFORE PUSHING NAFTA ADMINISTRATION OFFICIALS HAVE BEEN DEBATING BETWEEN THE TWO PRIORITIES AND HAVE CHOSEN NAFTA AS THE NEXT ITEM ON THEIR LEGISLATIVE AGENDA IN THE LETTER THE LAWMAKERS WARN THE DEBATE OVER NAFTA WILL BE DIFFICULT AND DIVISIVE BUT THE HEALTHCARE DEBATE PROMISES TO BE JUST AS CONTENTIOUS WITHIN THE ADMINISTRATION THE EFFORTS OF MR BONIOR A LONGTIME NAFTA OPPONENT ARE SEEN AS A THINLY DISGUISED ATTEMPT TO DELAY THE PACT LONG ENOUGH TO KILL IT YESTERDAY'S DECISION BY THE USCANADA PANEL COMES ON THE HEELS OF ANOTHER SETBACK TO THE US LUMBER INDUSTRY IN MAY THE PANEL SAID THE COMMERCE DEPARTMENT MUST RECONSIDER SEVERAL PARTS OF A RULING LAST YEAR THAT LEVIED 651 PENALTIES ON CANADIAN IMPORTS INTO THE US COMMERCE DEPARTMENT OFFICIALS HAVE UNTIL AUGUST TO FINISH THEIR REVIEW BUT THEY HAVE ASKED FOR AN EXTENSION THE TARIFFS ARE BEING COLLECTED AND HELD IN ESCROW UNTIL THE DISPUTE IS RESOLVED AS PART OF ITS DECISION YESTERDAY THE USCANADA PANEL ASKED THE US INTERNATIONAL TRADE COMMISSION TO RECONSIDER LAST YEAR'S RULING THAT SAID CERTAIN CANADIAN TIMBER TRADE POLICIES HAVE INJURED US PRODUCERS IN 1992 CANADA EXPORTED ABOUT FOUR BILLION CANADIAN DOLLARS US312 BILLION IN SOFTWOOD LUMBER TO THE US WITH CANADA'S SHARE OF THE US LUMBER MARKET TOTALING ABOUT 29 THE PANEL SAID THE COMMISSION'S RULING WASN'T SUPPORTED BY SUBSTANTIAL EVIDENCE ON THE RECORD IT SAID THE COMMISSION DIDN'T BASE ITS FINDING ON ANY GROUNDS TRADITIONALLY RELIED ON INCLUDING INCREASED IMPORTS BY VOLUME OR MARKET SHARE DECREASED PRICES UNDERSELLING CONFIRMED LOST SALES OR PRICE LEADERSHIP IT AGREED WITH THE COMMISSION THAT THE VOLUME OF CANADIAN IMPORTS DURING THE INVESTIGATION PERIOD WAS SIGNIFICANT BUT SAID THAT ISN'T SUFFICIENT TO CONCLUDE INJURY THE INTERNATIONAL TRADE COMMISSION A QUASIJUDICIAL GOVERNMENT BODY HAS 90 DAYS TO RESPOND TOM BUELL CHAIRMAN OF WELDWOOD LTD A VANCOUVER PULP AND LUMBER PRODUCER AND CHAIRMAN OF THE CANADIAN FOREST INDUSTRIES COUNCIL SAID THE CANADIAN INDUSTRY IS ELATED OVER THE RULING ROSANNA TAMBURRI IN OTTAWA CONTRIBUTED TO THIS ARTICLE 9307270011 930727 ENTERPRISE DISCIPLINE DEBATE EMBROILS FRANCHISING CODE OF ETHICS CRITICS CLAIM PROVISIONS HAVE NO BITE IFA PROMISES ENFORCEMENT THIS FALL BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL EIGHT MONTHS AFTER ITS UNVEILING THE FRANCHISING INDUSTRY'S TOUGHSOUNDING CODE OF ETHICS STILL STRIKES MANY CRITICS AS ONLY A PAPER TIGER THE INTERNATIONAL FRANCHISE ASSOCIATION'S DIRECTORS APPROVED THE CODE IN NOVEMBER IN HOPES OF REDUCING PRESSURES FOR NEW FEDERAL AND STATE CURBS ON FRANCHISERS THE DOCUMENT SPELLS OUT PRINCIPLES OF CONDUCT IN FRANCHISE SALES AND IN FRANCHISER DEALINGS WITH FRANCHISEES MANY FRANCHISEES HAVE COMPLAINED OF ABUSES IN THESE AREAS TO GIVE THE CODE TEETH THE IFA VOWED TO EXPEL THE MOST SERIOUS VIOLATORS BUT TODAY CRITICS COMPLAIN THAT ABUSES REMAIN AS WIDESPREAD AS EVER FRANCHISEES GRUMBLE THAT THE IFA A FRANCHISER TRADE GROUP BASED IN WASHINGTON DC HAS FAILED TO SET UP ENFORCEMENT PROCEDURES SO FAR NO FRANCHISER HAS BEEN DISCIPLINED MUCH LESS KICKED OUT THE IFA SAYS IT IS TOO EARLY TO PRONOUNCE THE CODE A FAILURE AND SAYS IT WILL ANNOUNCE ENFORCEMENT MECHANISMS THIS FALL BUT THAT IS OF LITTLE SOLACE TO DEWAYNE HALL AN OKLAHOMA CITY FRANCHISEE OF JIFFY LUBE INTERNATIONAL INC HOUSTON MR HALL SAYS HE GOT NOWHERE EARLIER THIS YEAR WHEN HE TWICE ALLEGED IN LETTERS TO THE IFA THAT THE PENNZOIL CO UNIT HAD VIOLATED THE CODE FOR EXAMPLE MR HALL CHARGED THAT JIFFY LUBE HAD BREACHED A PROVISION CALLING FOR GOODFAITH DEALINGS BETWEEN FRANCHISERS AND FRANCHISEES IN PART BY REFUSING TO GIVE HIM A COPY OF AN AUDITOR'S REPORT ON THE CHAIN'S ADVERTISING FUND THE TRADE GROUP PASSED ALONG THE COMPLAINTS TO JIFFY LUBE BUT TOOK NO FOLLOWUP ACTION WHEN THE FRANCHISER IGNORED THE MATTER FOR WEEKS MR HALL SAYS IFA OFFICIALS BASICALLY SAID THAT THEIR CODE OF ETHICS ISN'T ENFORCEABLE RIGHT NOW HE ADDS A PENNZOIL SPOKESMAN IN HOUSTON DENIES THAT JIFFY LUBE VIOLATED THE CODE OF ETHICS HE SAYS THE FRANCHISER PLANS TO PROVIDE ALL FRANCHISEES WITH AN AUDIT WHEN THE FUND'S DISSOLUTION NOW UNDER WAY IS COMPLETED THE IFA DECLINES TO DISCUSS DETAILS OF ANY COMPLAINT BROUGHT UNDER THE CODE BUT IT CONCEDES THAT IT IS STILL DETERMINING HOW IT WILL HANDLE CASES IN WHICH THE FRANCHISER AND FRANCHISEE DISPUTE THE FACTS OR CAN'T SETTLE THE MATTER ON THEIR OWN IFA CRITICS SAY THAT WITHOUT EFFECTIVE ENFORCEMENT THE CODE COULD BACKFIRE BY GIVING NEW AMMUNITION TO LEGISLATORS WHO SEEK TO CRACK DOWN ON FRANCHISING ABUSE IT'S ASTOUNDING TO ME THAT THE IFA WOULD INVITE FRANCHISEES TO COMPLAIN WHILE IT HAS NO PROCEDURE TO DEAL WITH COMPLAINTS SAYS ERIC H KARP A BOSTON LAWYER FOR FRANCHISEES REP JOHN J LAFALCE THE NEW YORK DEMOCRAT WHO IS THE PRINCIPAL CHAMPION IN CONGRESS OF NEW CURBS ON FRANCHISERS DECLARED LATE LAST MONTH THAT FRANCHISERS APPEAR TO BE BACKTRACKING ON ETHICS BILLS PROPOSED BY REP LAFALCE WOULD BROADEN FRANCHISER DISCLOSURES TO PROSPECTIVE FRANCHISEES AND REGULATE THE BUSINESS RELATIONSHIP BETWEEN FRANCHISERS AND FRANCHISEES UNLIKE THE CODE IT REPLACES THE NEW CODE EXPLICITLY ADDRESSES SUCH MAJOR FRANCHISEE CONCERNS AS ENCROACHMENTS ON OLDER FRANCHISES BY NEWER ONES WITHIN THE SAME CHAIN INDEED THE NEW CODE SPELLS OUT A VARIETY OF FACTORS THAT A FRANCHISER SHOULD CONSIDER BEFORE OPENING A NEW UNIT NEAR AN OLDER ONE WHOSE SALES MIGHT BE HURT SIMILARLY THE NEW CODE BARS TRMINATION OF FRANCHISE AGREEMENTS WITHOUT GOOD CAUSE BUT SKEPTICS DOUBT THAT FRANCHISERS BROADLY WILL EVER EMBRACE AND ENFORCE THE IFA'S NEW CODE IF I HAD TO MAKE A PREDICTION I WOULD SAY THAT THE CODE WILL WITHER OR DIE BECAUSE IT'S NOT WORKABLE SAYS W MICHAEL GARNER A NEW YORK FRANCHISING LAWYER NONSENSE INSISTS THE IFA WHICH SAYS IT HAS SET AN OCTOBER DEADLINE FOR ANNOUNCING ENFORCEMENT METHODS THE IFA SAYS IT HOPES NOT MERELY TO PUNISH RECALCITRANT FRANCHISERS BUT ALSO TO REDRESS FRANCHISEE GRIEVANCES WE EXPECT WIDESPREAD SUPPORT IN THE MEMBERSHIP FOR THE SPIRIT OF THE CODE SAYS JOHN REYNOLDS IFA EXECUTIVE VICE PRESIDENT THE IFA SAYS IT HAS BEEN RECEIVING ABOUT ONE COMPLAINT A WEEK UNDER THE NEW CODE ABOUT FOUR TIMES AS MANY AS IT USED TO GET UNDER THE FORMER CODE MOST INVOLVE PROMISES TO FRANCHISEES THAT FRANCHISERS ALLEGEDLY MADE AND BROKE ON SUCH THINGS AS ADVERTISING SUPPORT AND ONTHEJOB TRAINING MR REYNOLDS SAYS HE SAYS THAT PASSING ALONG COMPLAINTS USUALLY PROMPTS THE FRANCHISER TO SETTLE THE MATTER AMONG THE IFA'S MEMBERS ARE MORE THAN 700 FRANCHISERS THE IFA SAYS THESE CONCERNS ACCOUNT FOR MORE THAN 75 OF BUSINESSFORMAT FRANCHISES WHICH PROVIDE FRANCHISEES WITH AN ENTIRE SYSTEM OF DOING BUSINESS BUT THOUSANDS OF SMALL FRANCHISERS DON'T EVEN BELONG TO THE IFA AND SUPPORT FOR THE CODE OF ETHICS IS HARDLY UNANIMOUS EVEN AMONG THE ASSOCIATION'S MEMBERS THERE'S A LOT OF OBJECTION TO THIS PARTICULAR CODE OF ETHICS SAYS MARY C ROGERS CHIEF EXECUTIVE OFFICER OF ECW CORP THE GREAT FALLS VA FRANCHISER OF COMPUTERTOTS FRANCHISES HOMEBASED BUSINESSES THAT PROVIDE TRAVELING COMPUTER CLASSES FOR CHILDREN MS ROGERS SAYS CONSIDERABLE MARKET RESEARCH WOULD BE NEEDED TO COMPLY WITH THE CODE'S ANTIENCROACHMENT RESTRICTIONS ON WHERE FRANCHISERS PLACE NEW UNITS THAT'S AN ALMOST IMPOSSIBLE TASK FOR A SMALL FRANCHISER LIKE OURSELVES SHE SAYS MOREOVER SOME FRANCHISERS FEAR THAT THE CODE MIGHT BECOME A POWERFUL NEW WEAPON FOR FRANCHISEES TO WIELD IN COURT AT A MAY CONVENTION OF FRANCHISING LAWYERS IN WASHINGTON DC OPPOSITION TO THE CODE APPEARED TO BE WIDESPREAD AMONG FRANCHISERS' ATTORNEYS SAYS MR KARP THE BOSTON LAWYER WHO ATTENDED BUT THE CODE ALSO HAS MANY SUPPORTERS WHO SAY THE CRITICS ARE EXAGGERATING THE PROBLEMS THE CODE PRETTY FAIRLY REFLECTS WHAT SHOULD BE DONE IN THE INDUSTRY SAYS GERALD W PETIT PRESIDENT OF MANOR CARE INC'S CHOICE HOTELS INTERNATIONAL INC UNIT IN SILVER SPRING MD HE ADDS THE CODE IS CERTAINLY BETTER THAN ANY ALTERNATIVE OF OUTSIDERIMPOSED REGULATION EVEN SO OTHER FRANCHISERS HAVE RAISED NUMEROUS TECHNICAL OBJECTIONS TO THE CODECOMPLAINING FOR EXAMPLE THAT IT IS UNCLEAR HOW THE ENCROACHMENT PROVISIONS SHOULD AFFECT MOBILE FRANCHISES AN IFA COMMITTEE IS WEIGHING POSSIBLE REVISIONS OR AMPLIFICATIONS BUT THE COMMITTEE CHAIRMAN MICHAEL R DAVIS SUGGESTS THAT THE CHANGES IF ANY WILL BE MINOR HE SAYS THERE IS NO INTENT TO DO ANY SUBSTANTIVE BACKTRACKING 9307270010 930727 WHO'S NEWS CALIFORNIA THRIFT OUSTS CHAIRMAN AND POSTS LOSS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL JERRY ST DENNIS WAS OUSTED AS CHAIRMAN OF CALIFORNIA FEDERAL BANK AS THE THRIFT POSTED A 455 MILLION NET LOSS FOR THE SECOND QUARTER WILLIAM L CALLENDER CHIEF EXECUTIVE OFFICER AND PRESIDENT ALSO WAS ASKED BY THE COMPANY'S BOARD TO RESIGN HE AGREED BUT WILL STAY ON UNTIL NO LATER THAN YEAR END WHILE THE BOARD SEARCHES FOR NEW TOP EXECUTIVES MICHAEL ARTHUR A 54YEAROLD BOARD MEMBER WAS NAMED INTERIM CHAIRMAN THE MANAGEMENT SHAKEUP RAISED EYEBROWS IN SOME CIRCLES MR ST DENNIS A 51YEAROLD ECONOMIST WHO WAS NAMED CALIFORNIA FEDERAL'S CHAIRMAN IN 1990 HAD BEEN GIVEN HIGH MARKS IN THE INVESTMENT COMMUNITY FOR ENGINEERING A THREEYEAR RESTRUCTURING AND RECAPITALIZATION THAT PULLED THE LOS ANGELES COMPANY FROM THE BRINK OF COLLAPSE MR CALLENDER 60 WAS HIS RIGHTHAND MAN IN THAT CAMPAIGN HOWEVER MR CALLENDER SAID IN AN INTERVIEW THAT THE BOARD INFORMED HIM AND MR ST DENNIS LAST WEDNESDAY THAT IT DIDN'T THINK THEY WERE THE RIGHT PEOPLE TO CARRY THE BANK INTO THE FUTURE ALTHOUGH RUMORS SWIRLED LAST WEEK THAT THE BOARD WAS DISSATISFIED BY SOME ASPECTS OF THE TWO EXECUTIVES' PERFORMANCES MR CALLENDER SAID THE BOARD CONGRATULATED THEM ON RESCUING THE BANK FROM NEARCERTAIN FAILURE AND SAID THE ACTION WASN'T PROMPTED BY ANY SPECIFIC COMPLAINTS BUT THE BOARD THOUGHT WE WERE SO FOCUSED ON SOLVING THE PROBLEMS OF THE COMPANY THAT PERHAPS NEW LEADERS WERE NEEDED GOING FORWARD MR CALLENDER SAID THE BOARD'S POSITION SURPRISED THE TWO EXECUTIVES BUT DECLINED TO SAY WHETHER HE THOUGHT IT HAD ANY MERIT HE ALSO SAID THE BOARD INITIALLY ASKED HIM TO RESIGN IMMEDIATELY AND ASKED MR ST DENNIS TO STAY ON DURING THE SEARCH FOR REPLACEMENTS MR ST DENNIS DECLINED AND CLEANED OUT HIS DESK OVER THE WEEKEND MR CALLENDER AND OTHER COMPANY OFFICIALS SAID MR ST DENNIS COULDN'T BE REACHED TO COMMENT IRONICALLY THE TWO EXECUTIVES' BIGGEST COUP MAY HAVE LED TO THEIR UNDOING THE CENTERPIECE OF THE RESTRUCTURING WHICH MANY ANALYSTS THOUGHT CALIFORNIA FEDERAL COULD NEVER PULL OFF WAS A DEBTFOREQUITY SWAP IN CONNECTION WITH THAT SWAP THE FORMER HOLDERS OF THE COMPANY'S BONDS WERE ALLOWED TO NOMINATE MOST OF THE COMPANY'S DIRECTORS IT WAS THE NEW BOARD CONSISTING OF MESSRS ST DENNIS AND CALLENDER AND SEVEN BONDHOLDERNOMINATED DIRECTORS THAT CALLED FOR THE RESIGNATIONS ALTHOUGH CALIFORNIA FEDERAL NOW MEETS REGULATORY CAPITAL REQUIREMENTS IT REMAINS DEEPLY TROUBLED AND MAY NOT SURVIVE THE BIG SECONDQUARTER LOSS AMOUNTED TO 183 A SHARE IN THE YEAREARLIER QUARTER CALIFORNIA FEDERAL HAD A LOSS OF 232 MILLION OR 452 SHARE THE YEAREARLIER PERSHARE FIGURE REFLECTS A 1FOR5 REVERSE STOCK SPLIT EFFECTIVE IN MARCH 1993 THE LOSS LEFT CALIFORNIA FEDERAL'S TANGIBLE CAPITAL A FIRST LINE OF DEFENSE AGAINST FURTHER LOSSES AT ABOUT 7028 MILLION OR 442 OF TOTAL ASSETS MOREOVER CALIFORNIA FEDERAL'S PILE OF NONPERFORMING ASSETS MAINLY BAD LOANS AND FORECLOSED REAL ESTATE REMAINS HIGH AT 12 BILLION OR 745 OF ASSETS THE THRIFT SAID THE LOUSY SOUTHERN CALIFORNIA ECONOMY ESPECIALLY THE RAVAGED REAL ESTATE MARKET CONTINUES TO UNDERMINE ITS PORTFOLIO CALIFORNIA FEDERAL'S STOCK SLID ON THE ANNOUNCEMENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CALIFORNIA FEDERAL STOCK CLOSED YESTERDAY AT 11 A SHARE DOWN 150 JOSEPH A JOLSON THRIFT ANALYST FOR MONTGOMERY SECURITIES QUESTIONED THE BOARD'S REMOVAL OF MR ST DENNIS IT'S SURPRISING BECAUSE THAT COMPANY WAS GOING DOWN THE TUBES AND JERRY SNATCHED VICTORY FROM THE JAWS OF DEFEAT MR JOLSON SAID HE SAID THE NEW BOARD MAY HAVE CONCLUDED THAT THE COMPANY WAS OUT OF THE WOODS FOR GOOD AND NEEDED NEW MANAGERS LESS ATTUNED TO RUNNING A SALVAGE OPERATION IF THEY DID IT'S PROBABLY THEIR OWN LACK OF UNDERSTANDING OF THIS BUSINESS MR JOLSON SAID 9307270009 930727 AMEX RENTAL CAR INSURANCE NEW YORK AMERICAN EXPRESS CO'S TRAVEL RELATED SERVICES UNIT REVERSING A DECISION ANNOUNCED LAST MONTH SAID IT WILL CONTINUE TO PROVIDE CARRENTAL INSURANCE AT ALL CARRENTAL COMPANIES THAT ACCEPT THE AMERICAN EXPRESS CARD IN JUNE THE FINANCIALSERVICES COMPANY SAID IT PLANNED TO OFFER CAR RENTAL LOSS AND DAMAGE INSURANCE ONLY AT 15 LARGE US RENTAL COMPANIES EFFECTIVE AUG 1 THE DECISION PROVOKED PROTESTS AT SMALL CARRENTAL AGENCIES WHICH SAID THEY WOULD BE AT A COMPETITIVE DISADVANTAGE WITHOUT THE INSURANCE COMPLAINTS BY THE SMALLER FIRMS RESULTED IN THE CHANGE A SPOKESMAN FOR AMERICAN EXPRESS SAID WE CLEARLY DID NOT ANTICIPATE THE IMPORTANCE THAT MANY SMALL INDEPENDENT AGENCIES PLACE ON THIS COVERAGE HE SAID WE TALKED WITH LITERALLY HUNDREDS OF SMALL AGENICES PHIL SHAILER PRESIDENT OF ALAMO RENT A CAR AND PRESIDENT OF THE AMERICAN CAR RENTAL ASSOCIATION SAID AMEX WAS VERY RESPONSIVE AND AGREED TO REEVALUATE ITS POSITION AMERICAN EXPRESS HAS ENGINEERED A COMPREHENSIVE PLAN THAT SEEMS TO SOLVE ALL OF THE PROBLEMS IN THEIR PREVIOUS POLICY SAID ROBERT L SORENSEN PRESIDENT OF ACE RENT A CAR SYSTEM ALTHOUGH AMERICAN EXPRESS HAS RESUMED OFFERING THE COVERAGE IF CLAIMS AT ANY CARRENTAL FIRM EXCEED THE INDUSTRY NORM FOR AMERICAN EXPRESS USERS AT THE 15 LARGE CARRENTAL FIRMS THE AGENCY WILL HAVE TO ABSORB THE EXCESS COST OTHER CHANGES ANNOUNCED LAST MONTH WILL STAND AS OF AUG 1 COVERAGE IN THE US WILL INCREASE TO A MAXIMUM OF 31 DAYS FROM 15 DAYS AND CERTAIN FOURWHEELDRIVE VEHICLES WILL BE COVERED WHEN NOT USED OFFROAD THE SPOKESMAN SAID MOST CONSUMERS WILL NOT BE AFFECTED BY THE CHANGE BECAUSE THE 15 LARGE AGENCIES ACCOUNT FOR 95 OF AMERICAN EXPRESS RENTALCAR BUSINESS 9307270008 930727 LEISURE & ARTS ENCHILADAS AND 2 CHANCES RACING IN CARBON COUNTY BY RUTH RUDNER BEARCREEK MONT FROM THE BALCONY AT THE BACK OF THE BEARCREEK SALOON PITS DEARMOND SURVEYS THE FRESHLY RAKED TRACK THE FIRST RACE OF THE BEARCREEK DOWNS SEASON WILL BE RUN IN LESS THAN AN HOUR OLD FRIENDS POUR OUT ONTO THE BALCONY HOWDY PITS HOW'RE THEY RUNNING THEY ALL GREET HIM THEY'RE RUNNING GOOD HE ANSWERS BEARCREEK IS A LITTLE TOWN IN A NARROW VALLEY AT THE EDGE OF THE BEARTOOTH MOUNTAINS ONCE ONE OF CARBON COUNTY'S IMPORTANT COALMINING COMMUNITIES IT DECLINED WITH THE COAL MARKET THEN WAS VIRTUALLY FINISHED OFF IN 1943 WHEN 70 MINERS WERE KILLED IN THE SMITH MINE DISASTER IT IS A QUIET PLACE VIBRANTLY GREEN IN THIS SUMMER OF MUCH RAIN AFTER A STORM THE EVENING AIR IS FRESH WASHED WITH CLEAR AND GOLDEN LIGHT THE BETTING WINDOW OPENS AT 7 PM HALF AN HOUR BEFORE THE RACE WELL BEFORE THAT THE LINE OF PEOPLE EAGER TO BUY 2 CHANCES IN THE RANDOM SPORTS POOL EXTENDS DEEP INTO THE OLD TINCEILINGED SALOON EACH OF THE FIRST NINE RACES PAYS THE WINNER 25 THE 10TH RACE COSTS 5 TO ENTER BUT PAYS 100 TWO DOLLARS BUYS ONE SQUARE ON A 25SQUARE CARD SHORTLY BEFORE THE RACE BEGINS MR DEARMOND ASKS A SPECTATOR TO PICK PEAS NUMBERED ONE THROUGH FIVE OUT OF A COCKTAIL SHAKER THEN PLACES THE NUMBERS ACROSS THE TOP OF THE CARD IN THE ORDER PICKED THE PICK IS DONE A SECOND TIME TO PLACE NUMBERS VERTICALLY ON THE CARD WHOEVER'S NAME IS IN THE SQUARE THAT IS AT THE INTERSECTION OF EACH SET OF NUMBERS HAS A CHANCE TO WIN WINNING HERE TRULY IS THE LUCK OF THE DRAW THEIR BETS IN PLACE THE SPECTATORS PRESS AGAINST THE RAILING OF THE BALCONY FOR A GOOD VIEW THE PIGS ARE IN THE STARTING BOX AND IT'S RACE TIME MR DEARMOND SHOUTS OVER THE MICROPHONE THE BELL RINGS THE GATE LIFTS AND FIVE OF THE BEST RACING PIGS IN CARBON COUNTY TAKE OFF IN A GREAT FLURRY OF PINKNESS WELL MAYBE FIVE TAKE OFF SOMETIMES A PIG IS FACING THE WRONG WAY WHEN THE GATE IS LIFTED THE ENTRANTS NOTA HOT DOG LUCKY LINKS HAMLET PIG O'WAR AND BARBIE Q RUN AT TOP SPEED SPIN AROUND THE FIRST TURN SPIN AROUND THE SECOND TURN AND HEAD INTO THE THIRD TURN WHERE CATCHING SIGHT OF THE FEED BOX THEY TROT EASILY TO THE FINISH THE 30YARD RUN IS OVER AND THE BEARCREEK DOWNS SEASON HAS BEGUN IT IS ALREADY A TRIUMPHANT SEASON GIVEN ALL PITS AND LYNN DEARMOND HAD TO GO THROUGH TO MAKE IT HAPPEN WHEN THE DEARMONDS BEGAN THEIR PIG RACES IN 1989 IT WAS A WAY TO ENTICE PEOPLE FROM OUT OF TOWN TO THEIR SALOON TO BUY A FEW DRINKS AND EAT GOOD MEXICAN FOOD THERE ARE 35 PEOPLE IN BEARCREEK AND NONE OF THEM DRINK MR DEARMOND EXPLAINS A FEW HUNDRED DINNERS ON WEEKEND NIGHTS MAKE A BIG DIFFERENCE IN THE DEARMONDS' LIVELIHOOD THEY FEEL SOME FORM OF WAGERING IS ESSENTIAL TO THEIR RACES THAT IT IS THE SMALL RISK TO WIN MONEY THAT KEEPS PEOPLE INTERESTED ALL EVENING THE LONGER PEOPLE STAY THE MORE ENCHILADAS THEY EAT FROM THE START THE RACES WERE RUN WITH THE IDEA THAT ALL PROFITS WOULD GO INTO A SCHOLARSHIP FUND FOR A CARBON COUNTY STUDENT THE FIRST TWO YEARS SCHOLARSHIPS OF 3200 WERE AWARDED IN 1992 IT WAS 4000 THE RACES WENT SMOOTHLY AT THE BEGINNING UNTIL THE MONTANA BOARD OF HORSE RACING COMPLAINED THAT THE PIGIMUTUEL RACES WERE NOT LEGAL AND THAT THEY NEEDED TO BE LICENSED BY THE STATE THE DEARMONDS APPLIED TO THE BOARD OF HORSE RACING BUT WERE DENIED ENTRY BECAUSE THEY LACKED JOCKEY INSURANCE A LIST OF OFFICIALS RACING COLORS COMMUNICATIONS EQUIPMENT AND JOCKMOUNT FEES WHAT JOCKEYS HAVE TO PAY TO RIDE IN A RACE BESIDES THAT THE BOARD OF HORSE RACING SAID IT DID NOT HAVE THE AUTHORITY TO REGULATE PIG RACES IN EXPLORING MONTANA'S GAMBLING LAWS THE DEARMONDS DISCOVERED THEY COULD RACE UNDER THE SPORTSPOOL LAW OF THE STATE'S GAMBLING CONTROL DIVISION IN SPRING 1990 THEY SET UP THEIR SCHOLARSHIP FUND AS A STATELICENSED NONPROFIT ORGANIZATION THE RACES WERE NOW LEGAL BUT THE MONTANA BOARD OF HORSE RACING STILL WANTED THEM SHUT DOWN AND IT CONVINCED THE GAMBLING CONTROL DIVISION TO DELETE THE REFERENCE TO ANIMALS THAT MADE THEM LEGAL UNDER THE SPORTSPOOL LAW THIS MEANT THAT THE PIG RACES WERE AGAIN ILLEGAL IT ALSO MEANT THAT ALTHOUGH THE BOARD OF HORSE RACING HAD SAID IT HAD NO AUTHORITY TO REGULATE PIG RACES IN FACT IT NOW CONTROLLED ALL FORMS OF ANIMAL RACING IN THE STATE WHAT THE DEARMONDS NOW REQUIRED WAS A LEGISLATIVE ACT TO LIMIT THE ANIMALS OVER WHICH THE HORSERACING BOARD HAD CONTROL AND TO REINSTATE THE REFERENCE TO ANIMALS IN THE SPORTSPOOL LAW IN THE 1993 LEGISLATIVE SESSION REP ALVIN ELLIS JR A REPUBLICAN FROM RED LODGE INTRODUCED HB 433 BETTER KNOWN AS THE PIG BILL THAT WOULD DO BOTH THESE THINGS AS WELL AS SPECIFICALLY ALLOW PIG GERBIL AND HAMSTER RACES IN OR OUT BACK OF BARS LOCATED IN TOWNS OF LESS THAN 100 PEOPLE OR IN UNINCORPORATED AREAS DESPITE OPPOSITION BY THE BOARD OF HORSE RACING AND MONTANA'S ANTIGAMBLING FACTION THE BILL MADE IT THROUGH THE STATE HOUSE OF REPRESENTATIVES TO ARRIVE IN THE SENATE BUSINESS AND INDUSTRY COMMITTEE WHERE CHAIRMAN JD LYNCH A DEMOCRAT FROM BUTTE CALLED ON BOTH SIDES TO PRESENT THEIR CASE REP ELLIS TOLD THE SENATORS THAT THE PIG RACES BROUGHT BUSINESS INTO CARBON COUNTY SOMETIMES BY THE BUSLOAD AND THAT THIS WAS GOOD FOR BOTH THE COUNTY AND THE STATE FOR WHICH TOURISM IS A VITAL INDUSTRY MR DEARMOND DRESSED IN JEANS ROPER BOOTS A SPORTS JACKET DENIM SHIRT AND A TIE DECORATED WITH PIG FACES DEFENDED THE INTEGRITY OF THE RACES POINTING OUT THAT BECAUSE OF THE RANDOM SPORTS POOL THE RACES COULD NOT BE FIXED AMONG THOSE ON THE OTHER SIDE OF THE FENCE WAS A MINISTER REPRESENTING THE MONTANA ASSOCIATION OF CHURCHES WHO SAID WE FEEL THIS BILL IS AGAINST THE NATURAL ORDER OF THINGS PIGS ARE NOT MEANT TO BE RACED THEY ARE MEANT TO BE EATEN IN THE FULL SENATE THE PIG BILL HAD A TOUGH FIGHT WITH STRONG SENTIMENT AGAINST GAMBLING IN MONTANA WHETHER OR NOT THE PIG RACES CONSTITUTED GAMBLING SEEMED THE REAL FOCUS OF CONFLICT DURING THE SECONDREADING DEBATE SEN TERRY KLAMPE A DEMOCRAT FROM FLORENCE SAID I BET SENATOR LYNCH THAT THIS IS GAMBLING I'LL BE GLAD TO TAKE THAT BET SEN LYNCH ANSWERED IF THE ACTIVITY IS GAMBLING THERE OUGHT TO BE A PROFIT ALL PROCEEDS GO TO COLLEGE SCHOLARSHIPS THIS MAN IS DOING A SINCERE GOOD THING FOR HIS COMMUNITY THE PIG BILL PASSED ON THE THIRD READING BY A VOTE OF 29 TO 18 THE RACES WERE ON AGAIN BEFORE THE FIRST RACE SOWBOYS AL COOPER AND DON ABAAR HERD THE EIGHTWEEKOLD PIGS INTO PENS AND DRESS THEM THEY SQUEAL AND WRIGGLE AS JERSEYS ARE PUT ON THEM HUDDLED TOGETHER IN THEIR PENS THEY SNORT AND GRUNT THEIR DEEP VOICES SAYING SOMETHING THAT SOUNDS LIKE OH OH OH THE JERSEYS BEAR THE NAMES OF THE PIGS' RESPECTIVE SPONSORS ALL OF WHOM HAVE PAID 100 AND SOME OF WHOM HAVE ADDED A TRIM OF LACE OR RUFFLES TO THEIR PIG'S OUTFIT THE PIGS ARE WONDERFULLOOKING THEIR BIG EARS FLARE OUT FROM SERIOUS PINK FACES THEN CURL BACK AT THE POINTED TIPS THEY STAND ON THE FOUR DAINTIEST FEET IMAGINABLE MOST OF THEIR TAILS HAVE BEEN CROPPED BUT THE TAIL ON A RED PIG THE ONLY RED ONE IN THE BUNCH HAS BEEN LEFT LONG IT MAKES A LOVELY CURL AFTER THE 10TH RACE ALL THE PIGS ARE LET OUT TO TWO FEED TROUGHS AT THE FINISH LINE SQUEEZED IN TOGETHER MUCH THE WAY THE SPECTATORS SQUEEZE IN AT THE RAILING THE PIGS HOLD THEIR BACK LEGS PRIMLY TOGETHER GIVING THEM A MODEST AIR WHEN VIEWED FROM BEHIND FOR THIS NIGHT AT THE RACES IT IS THE PERFECT ENDINGSTAR THE BEARCREEK SALOON IS ON HIGHWAY 308 BETWEEN RED LODGE AND BELFRY PIG RACES ARE FRIDAY THROUGH SUNDAY AT 730 THE NIGHT'S DINNER IS SERVED PHONE 406 4463481 MS RUDNER IS A WRITER IN BOZEMAN MONT 9307270007 930727 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JULY 14 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9307270006 930727 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 59 DAYS 313 60 TO 89 DAYS 315 90 TO 119 DAYS 320 120 TO 149 DAYS 322 150 TO 179 DAYS 335 180 TO 229 DAYS 343 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 293 SIX MONTHS 315 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 320 THREE MONTHS 342 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 309 60 DAYS 311 90 DAYS 317 120 DAYS 319 150 DAYS 332 180 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 720 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 716 60 DAYS 723 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 710 60 DAYS 720 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 9307270005 930727 WHO'S NEWS CRYOLIFE INC CRYOLIFE INC MARIETTA GA DONALD J BLANKERS 54 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF THIS COMPANY WHICH PROCESSES AND PRESERVES HUMAN TISSUE FOR TRANSPLANTS MR BLANKERS SUCCEEDS GLEN W SMOTHERMAN 48 WHO IS RESIGNING TO PURSUE ENTREPRENEURIAL INTERESTS THE COMPANY SAID PREVIOUSLY MR BLANKERS HAD BEEN CHIEF FINANCIAL OFFICER OF NATIONAL DATA CORP AN ATLANTABASED PROVIDER OF COMPUTERBASED INFORMATION SERVICES 9307270004 930727 WHO'S NEWS LYONDELL PETROCHEMICAL CO LYONDELL PETROCHEMICAL CO HOUSTON MIKE R BOWLIN 50 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF ATLANTIC RICHFIELD CO ALLAN L COMSTOCK 49 VICE PRESIDENT AND CONTROLLER OF ARCO AND TERRY G DALLAS 42 VICE PRESIDENT OF CORPORATE PLANNING OF ARCO WERE ELECTED DIRECTORS OF THIS REFINER THEY FILL VACANCIES CREATED BY THE RESIGNATIONS OF JAMES S MORRISON AND CAMRON COOPER AND INCREASE THE NUMBER OF BOARD MEMBERS TO 11 ATLANTIC RICHFIELD OWNS 499 OF THE COMMON SHARES OUTSTANDING OF LYONDELL 9307270003 930727 BUSINESS BRIEF MOTOROLA INC SEMICONDUCTOR FACTORY LAB TO BE BUILT IN AUSTIN TEXAS MOTOROLA INC SAID IT WILL BUILD A 1 BILLION SEMICONDUCTOR FACTORY AND RESEARCH LAB IN AUSTIN TEXAS MOTOROLA IN SCHAUMBURG ILL ALREADY HAS SIZABLE MANUFACTURING OPERATIONS IN AUSTIN IT SAID THE NEW STATEOFTHEART FACILITY WILL FEATURE ADVANCED CHIPMAKING MACHINERY THAT WILL ENABLE IT TO ETCH CIRCUITS AS SMALL AS 025 MICRON EVENTUALLY THE PLANT'S CHIPETCHING MACHINES WILL BE ABLE TO CARVE CHIP PARTS AS SMALL AS 012 MICRON THE SMALLER THE CIRCUITS THE MORE COMPUTING POWER CAN BE LOADED ONTO INDIVIDUAL CHIPS MOTOROLA SAID CONSTRUCTION OF THE NEW FACILITY IS EXPECTED TO BE COMPLETED IN 1996 9307270002 930727 OTC FOCUS STEADY GAINS PUSHED MARKET HIGHER AMID RECORD DAY FOR BIG BOARD STOCKS BY THOMAS E WEBER SPECIAL TO THE WALL STREET JOURNAL NEW YORK STEADY GAINS THROUGHOUT MOST OF THE DAY PUSHED NASDAQ STOCKS HIGHER PROMINENT TECHNOLOGY ISSUES ON THE OVERTHECOUNTER MARKET CONTINUED TO BOUNCE BACK FROM RECENT SELLOFFS WHILE A RECORD DAY ON THE BIG BOARD BOLSTERED EQUITIES OVERALL BUT MARKET PLAYERS SAID TRADING WAS UNDIRECTED WITH LITTLE ACTUAL NEWS DRIVING THE ACTION THE NASDAQ COMPOSITE INDEX CLOSED 430 POINTS HIGHER AT 70454 A GAIN OF ABOUT 06 ON FRIDAY THE INDEX SWELLED 472 POINTS ADVANCERS POWERED PAST DECLINERS 1437 TO 1268 NATIONAL MARKET SYSTEM VOLUME TOTALED 1896 MILLION SHARES OFF SLIGHTLY FROM FRIDAY'S VOLUME OF 1902 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE THE DOW JONES INDUSTRIAL AVERAGE SURGED 2096 POINTS TO 356770 A RECORD CLOSING THE BROADER BIG BOARD COMPOSITE INDEX ROSE 122 POINTS TO 24868 BIG BOARD STOCKS RECEIVED A MORNING BOOST FROM CLIMBING BOND PRICES AND BUILT ON GAINS IN THE AFTERNOON THE NASDAQ COMPOSITE DESPITE TODAY'S ADVANCE REMAINS OFF RECORD LEVELS AS TECHNOLOGY STOCKS STRUGGLE TO REGAIN THEIR LOST LUSTER THE INDEX REACHED ITS RECORD OF 71249 ON JULY 14 WE'RE SEEING BETTER PRICES ACROSS THE BOARD BUT IT'S VERY UNFOCUSED SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE THE BONDS KIND OF KICKED IN THIS MORNING AND NOW WE'RE JUST FOLLOWING THE DJIA OVERALL PROMINENT TECHNOLOGY AND COMMUNICATIONS STOCKS WERE FIRM INTEL JUMPED 1 1/4 TO 52 7/8 WHILE MICROSOFT EDGED 5/8 HIGHER TO 78 1/4 MCI COMMUNICATIONS ROSE 1/8 TO 29 1/8 AND CLASS A SHARES OF TELECOMMUNICATIONS INCREASED 1 TO 24 1/4 WE ARE BOUNCING FROM AN EXTREMELY OVERSOLD CONDITION AFTER THE SLEW OF EARNINGS MOSTLY DISAPPOINTING FROM TECHNOLOGY SAID SCOTT BLEIER MARKET TECHNICIAN AT JOSEPHTHAL LYON & ROSS AMONG NASDAQ TECHNOLOGY STOCKS THAT WERE BATTERED RECENTLY OVER EARNINGS APPLE COMPUTER FINISHED UP 5/8 AT 26 7/8 DELL COMPUTER GAINED 3/4 TO 18 1/4 AND LEGENT CLIMBED 1/2 TO 18 EVEN SO MR BLEIER ADDED INVESTORS CONTINUE TO BE NERVOUS ABOUT SOME OF THOSE GROWTH ISSUES AND THAT LEAVES TECHNOLOGY STOCKS AND THE BROADER NASDAQ MARKET SUSCEPTIBLE TO BAD NEWS INVESTORS CONTINUE TO BE EXTREMELY QUICK ON THE TRIGGER FOR BROKERAGE DOWNGRADES MR BLEIER SAID NOVELL PLUNGED 3 1/2 TO 21 1/4 ON CONCERNS ABOUT HIGH INVENTORY LEVELS GOLDMAN SACHS ANALYST RICK SHERLUND LOWERED HIS RATING OF THE STOCK TO MARKET PERFORMER FROM MODERATE OUTPERFORM AND TRIMMED EARNINGS ESTIMATES FOR THE PROVO UTAH COMPUTER NETWORKING CONCERN AT 108 MILLION SHARES TRADED NOVELL WAS THE DAY'S MOSTACTIVE ISSUE OTHER NETWORKINGRELATED STOCKS WERE ALSO LOWER NETFRAME SYSTEMS DROPPED 3 TO 15 1/4 WHILE BANYAN SYSTEMS SLIPPED 1 1/2 TO 18 NETFRAME IN MILPITAS CALIF WHICH MAKES SUPERSERVER COMPUTERS FOR NETWORKS ADVISED ANALYSTS THAT REVENUE GROWTH ESTIMATES OF 100 FOR ITS FOURTH QUARTER ARE TOO HIGH BANYAN SYSTEMS ANOTHER SUPPLIER OF COMPUTER NETWORKING SOFTWARE POSTED SECONDQUARTER EARNINGS OF 19 CENTS A SHARE UP FROM 12 CENTS A YEAR AGO THAT RESULT WAS IN LINE WITH EXPECTATIONS BUT MARKET PLAYERS SAID SOME OF THE CONCERN OVER NOVELL SPILLED OVER ONTO BANYAN FIRST AMARILLO NORMALLY A THINLY TRADED STOCK ROCKETED 6 1/8 TO 26 1/8 ON MORE THAN HALF A MILLION SHARES ON FRIDAY AFTERNOON BOATMEN'S BANCSHARES IN ST LOUIS AGREED TO ACQUIRE FIRST AMARILLO OF AMARILLO TEXAS FOR STOCK THE AGREEMENT CALLS FOR BOATMEN'S TO PAY 0456 OF ITS SHARES FOR EACH FIRST AMARILLO SHARE BOATMEN'S WAS CLIPPED 1/8 TO 61 5/8 US HEALTHCARE SURGED 2 1/4 TO 52 AFTER GAINING 2 1/8 ON FRIDAY THE BLUE BELL PA PROVIDER OF HEALTHCARE SERVICES REPORTED BETTERTHANEXPECTED SECONDQUARTER EARNINGS OF 62 CENTS A SHARE UP FROM 43 CENTS IN 1992 THE AVERAGE ESTIMATE OF 13 ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD PUT US HEALTHCARE'S EARNINGS AT 56 CENTS A SHARE SMITH BARNEY ANALYST GEOFFREY HARRIS UPGRADED THE STOCK TO OUTPERFORM BASED ON THE STRONG EARNINGS REPORT 9307270001 930727 TECHNOLOGY IN THE LAB US SPIES HELP SCIENTISTS PIERCE DATA JUNGLE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS COMPUTER SCIENTIST STEPHEN GALLANT'S ASSIGNMENT SEARCH THROUGH A NEWSPAPER DATABASE FOR STORIES ABOUT TELEVANGELISTS AND THEIR FINANCIAL WOES IT SOUNDS PERFECTLY MUNDANE BUT THE ASSIGNMENT COMES FROM AN UNIDENTIFIED PROFESSIONAL SPY THE US DEPARTMENT OF DEFENSE IS PAYING DR GALLANT FOR HIS RESEARCH AND HE IS HUNTING FOR HIS DATA BY ROAMING THROUGH A 300DIMENSIONAL DIGITAL MAP OF THE ENGLISH LANGUAGE DR GALLANT'S SEARCH IS PART OF AN EXTRAORDINARY GOVERNMENT PROJECT TO BREAK OPEN ONE OF THE GREAT BOTTLENECKS OF THE INFORMATION AGE THE WORLD'S COMPUTERS ARE SWELLING WITH OCEANS OF NEW ELECTRONIC NEWSPAPERS BOOKS MESSAGES AND DOCUMENTS BUT SEARCHING THROUGH THESE DATABASES IS AN OLDFASHIONED NIGHTMARE MOST COMPUTER SEARCHES STILL USE A CUMBERSOME TECHNIQUE DATING BACK TO THE 1960S KNOWN AS BOOLEAN AFTER THE 19THCENTURY BRITISH MATHEMATICIAN GEORGE BOOLE LIKE A DUMB RETRIEVER FETCHING STICKS A BOOLEAN SEARCH FETCHES WORDS IT CAN FISH OUT EVERY DOCUMENT CONTAINING THE WORD DINOSAUR OR MORE NARROWLY THE WORDS DINOSAUR AND MOVIE ALL TOO TYPICALLY A BOOLEAN SEARCH YIELDS AN OVERWHELMING TORRENT OF HUNDREDS OF DOCUMENTS NARROWING IT DOWN INVOLVES CONSTRUCTING BAROQUE STRINGS OF WORDFINDING COMMANDS IF YOU WANTED TO READ ABOUT DINOSAUR MOVIES BEFORE JURASSIC PARK YOU'D NEED TO GO FISHING WITH A COMMAND SOMETHING LIKE DINOSAUR AND MOVIE OR FILM AND NOT JURASSIC ADJACENT TO PARK YOUR SEARCH WOULD STILL PULL IN REAMS OF IRRELEVANT ARTICLESAND MISS LOTS OF RELEVANT ONES NOW THAT SEARCHING DATABASES IS SO COMMONPLACE THE BOOLEAN METHOD IS FRUSTRATING A GROWING NUMBER OF COMPUTER USERS PERHAPS THE MOST FRUSTRATED OF ALL ARE THE WORLD'S MOST ZEALOUS DATASEARCHERS THE ULTRASECRETIVE INTELLIGENCE ANALYSTS OF THE CENTRAL INTELLIGENCE AGENCY AND THE NATIONAL SECURITY AGENCY THEY LIVE AND DIE SOMETIMES LITERALLY BY PROBING FOR LINKS IN SUPERCOMPUTERS FULL OF REPORTS AND MESSAGES THREE YEARS AGO THE DEFENSE DEPARTMENT LAUNCHED A FULLSCALE ATTACK ON BOOLEAN SEARCHES CODENAMED TIPSTER THE DEPARTMENT'S ADVANCED RESEARCH PROJECTS AGENCY ROUNDED UP EIGHT TEAMS OF TOP COMPUTER SCIENTISTS AND GAVE THEM 15 MILLION TO COME UP WITH A BETTER SEARCH TECHNIQUE WITH THE INCREASE OF ALL THESE HIGHSPEED INFORMATION NETWORKS AND HIGHWAYS SO MUCH INFORMATION IS GOING TO BE AVAILABLE THAT WE WILL NEED INTELLIGENT WAYS OF REDUCING IT OR PEOPLE WILL JUST BE FLOODED SAYS THOMAS CRYSTAL THE ARPA PROGRAM MANAGER OVERSEEING TIPSTER TO JUDGE THE TIPSTER RESEARCHERS ARPA GAVE THEM EACH THREE COMPACT DISKS WITH DOCUMENTS FROM THE FEDERAL REGISTER COMPUTER MAGAZINES AND VARIOUS NEWSPAPERS INCLUDING THIS ONE THE RESEARCHERS ALSO GOT OVER 100 DIABOLICALLY COMPLEX SEARCH REQUESTS DOCUMENT WILL REPORT A LOSS OF REVENUE OF A TELEVANGELIST IN THE AFTERMATH OF THE PTL SCANDAL OR A FINANCIAL CRISIS TRIGGERED BY THE SCANDAL DOCUMENT WILL CITE AN INSTANCE IN WHICH THE US GOVERNMENT PROPOUNDS TWO CONFLICTING OR OPPOSING POLICIES WHO DEVISED THESE REQUESTS TECHNICAL PEOPLE FROM VARIOUS GOVERNMENT AGENCIES SAYS AN ARPA OFFICIAL TRANSLATION ACCORDING TO KNOWLEDGEABLE TIPSTER INSIDERS US INTELLIGENCE ANALYSTS ONE OF THE TIPSTER GRANTS WENT TO STEPHEN GALLANT A BEARDED SCIENTIST WITH FRIZZY GRAY HAIR WHO WORKS FOR A SMALL SAN DIEGO COMPANY CALLED HNC INC IN HNC'S LITTLE SATELLITE OFFICE IN HARVARD SQUARE HE SITS BENEATH A DELICATE JAPANESE PRINT AND DEVISES FUTURISTIC WAYS TO STALK THE WORDS AND DOCUMENTS STORED IN HIS SUN WORKSTATION HIS PROPOSED SOLUTION DUBBED MATCHPLUS BORROWS THE STRATEGIES OF A NAVIGATOR IMAGINE A MAP OF EVERY WORD IN THE ENGLISH LANGUAGE THREEHITTER WOULD BE IN CLOSE PROXIMITY TO BASEBALL LOST WOULDN'T BE QUITE SO CLOSE BUT IT WOULD BE CLOSER THAN HIPPOPOTAMUS AND RAGWEED A SEARCH ABOUT BASEBALL WOULD COMB THROUGH THE ENTIRE NEIGHBORHOOD OF THE WORD BASEBALL OF COURSE A NORMAL TWODIMENSIONAL MAP WOULD BE MUCH TOO CRUDE TO CHART ALL THE SUBTLE RELATIONSHIPS OF THE ENGLISH LEXICON SO DR GALLANT DEVISED A MAP WITH 300 DIMENSIONS THAT IS EACH WORD'S LOCATION HAS 300 COORDINATES INSTEAD OF THE CONVENTIONAL TWO COORDINATES FOR LATITUDE AND LONGITUDE IN FACT THERE ISN'T A LITERAL 300D MAP HANGING IN DR GALLANT'S OFFICE BUT HE DEVISED A COMPLEX PROGRAM THAT CREATES 300 COORDINATES FOR ANY WORD IN OVERSIMPLIFIED TERMS IT ANALYZES ALL THE ARTICLES IN A DATABASE AND ASSESSES THE LIKELIHOOD THAT ONE WORD APPEARS IN A SIMILAR CONTEXT AS ANOTHER WORD IT TAKES HALF A DAY OR SO TO CREATE A MAP FOR A MEDIUMSIZED DATABASE COMPUTERIZED READING PROGRAMS ARE NOTORIOUSLY IMPRECISE BUT DR GALLANT DOESN'T MAKE ANY CLAIM THAT MATCHPLUS LITERALLY UNDERSTANDS WHAT IT READS ONLY THAT IT GETS A GOOD SENSE OF HOW WORDS ARE USED HE PICKED SUCH A BIG NUMBER OF COORDINATES TO MAKE UP FOR THE OCCASIONAL FALSE CONNECTIONS HIS PROGRAM WOULD INEVITABLY INFER TO DEMONSTRATE DR GALLANT BOOTS UP HIS PROGRAM AND TYPES IN PLANE FOR MORE COMPLEX SEARCHES DR GALLANT CAN LIST ANY NUMBER OF WORDS AND RANK THEM IN ORDER OF IMPORTANCE TO THE SEARCH THE PROGRAM FLASHES A LIST OF HUNDREDS OF ARTICLES RANKED IN ORDER OF THEIR RELEVANCE TO THE WORD PLANE BUT NO 13 HAPPENS NOT TO USE THE WORD ITSELF PENTAGON BUYING OLD MIGS ON OPEN MARKET SO FAR MATCHPLUS'S CHIEF VIRTUE IS ALSO A DEFECT IT CASTS SUCH AN IMAGINATIVELY WIDE NET THAT IT SOMETIMES HAULS IN USELESS RED HERRINGS MEANWHILE DR GALLANT IS WORKING ON MINDBENDING NEW FEATURES FOR THE PROGRAM ONE WOULD SHOW A SEARCH'S RESULTS IN THE FORM OF A COLOR MAP INSTEAD OF A LIST OF STORIES ANOTHER WOULD PICK APART WORDS WITH MULTIPLE MEANINGS AND DISAMBIGUATE THEM HOPEFULLY ALL THIS WILL LIFT ONE OF THE MANY VEILS FROM THE COMPUTER'S EYE HE SAYS AND LET IT SEE WHAT THESE WORDS ARE REALLY ABOUT 9307260162 930726 ENTERPRISE FOCUS ON FRANCHISING SENATOR JOINS CAMPAIGN FOR A FRANCHISEE'S RIGHT TO SUE BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL A SENATOR URGES A RIGHT TO PRIVATE SUITS BASED ON US FRANCHISE RULES SEN CARL LEVIN D MICH ARGUES THAT CONGRESS SHOULD GIVE FRANCHISEES THE RIGHT TO BRING THEIR OWN LAWSUITS AGAINST FRANCHISERS FOR ALLEGEDLY VIOLATING US RULES THAT GOVERN FRANCHISER DISCLOSURES TO PROSPECTIVE FRANCHISEES CURRENTLY ONLY THE FEDERAL TRADE COMMISSION CAN BRING SUCH SUITS THE FTC ITSELF HAS ADVOCATED THIS FOR YEARS AS A COMPLEMENT TO ITS OWN ENFORCEMENT ACTIVITIES AND THE TIME HAS COME TO DO IT SEN LEVIN SAID EARLIER THIS MONTH ABOUT A SOCALLED PRIVATE RIGHT OF ACTION UNDER FTC RULES HE IS THE FIRST SENATOR TO SUPPORT THIS ISSUE A LEVIN AIDE SAYS THE SENATOR MAY INTRODUCE A BILL TO ALLOW THE CHANGE AN FTC SPOKESWOMAN SAYS THE AGENCY NO LONGER TAKES A POSITION ON THE PRIVATESUIT ISSUE WHICH IS BEST ADDRESSED BY CONGRESS IN THE HOUSE REP JOHN J LAFALCE D NY ALREADY HAS PROPOSED NEW FRANCHISING LAWS THAT INCLUDE A RIGHT FOR FRANCHISEES TO BRING PRIVATE SUITS UNDER FTC RULES REP LAFALCE SAYS SEN LEVIN'S PROPOSAL WOULD AID VICTIMS OF FRANCHISE FRAUD AMONG OTHER THINGS THE FTC RULES REQUIRE A REASONABLE BASIS FOR ANY FRANCHISER CLAIMS ABOUT FRANCHISEES' FUTURE EARNINGS HAROLD BROWN A BOSTON FRANCHISING LAWYER SAYS A PRIVATE RIGHT OF ACTION WOULD BE EXTREMELY USEFUL AND VERY IMPORTANT FOR MANY FRANCHISEES ESPECIALLY IN SOME 32 STATES WITHOUT LAWS THAT MIRROR THE FTC RULES W MICHAEL GARNER A NEW YORK FRANCHISING LAWYER ADDS THAT SUITS INVOLVING FTC RULES WOULD BE MUCH EASIER TO PROSECUTE THAN THE COMMONLAW FRAUD CLAIMS THAT MANY FRANCHISEES NOW MUST PURSUE BUT MANY FRANCHISERS OPPOSE THE IDEA A PRIVATE RIGHT OF ACTION ENCOURAGES EACH FRANCHISEE TO BECOME A VIGILANTE COMMITTEE OF ONE SAYS JOHN REYNOLDS EXECUTIVE VICE PRESIDENT OF THE INTERNATIONAL FRANCHISE ASSOCIATION FRANCHISING LAWYER LEWIS G RUDNICK IN CHICAGO SAYS THE CHANGE URGED BY SEN LEVIN AND REP LAFALCE WOULD CERTAINLY CREATE ADDITIONAL LITIGATION HOW MUCH MORE MR RUDNICK SAYS THAT WOULD DEPEND LARGELY ON ASYETUNKNOWN TECHNICALITIES SUCH AS ANY STATUTE OF LIMITATIONS A FEDERAL REPORT CONFIRMS A SHORTFALL IN FRANCHISERULE ENFORCEMENT IN EXPLAINING WHY HE THINKS FRANCHISEES SHOULD BE ABLE TO FILE SUITS BASED ON VIOLATIONS OF THE FTC RULES SEN LEVIN CITED A REPORT HE SOUGHT FROM THE GENERAL ACCOUNTING OFFICE UNCLE SAM'S BIG WATCHDOG AGENCY ACCORDING TO THAT NEW REPORT THE FTC LACKS SUFFICIENT RESOURCES TO ENFORCE ITS FRANCHISING RULES AS A RESULT SOME POTENTIALLY MERITORIOUS CASES MAY NOT GET INVESTIGATED OR LITIGATED THE REPORT SAYS AND FEDERAL BUDGET CONSTRAINTS MAKE INCREASES IN FTC FUNDING HIGHLY UNLIKELY SEN LEVIN ASSERTED THE GAO REPORT GIVES CREDENCE TO FRANCHISEES' LONGSTANDING COMPLAINTS ABOUT THE AGENCY'S ALLEGEDLY LAX ENFORCEMENT REP LAFALCE WHO HEADS THE HOUSE SMALL BUSINESS COMMITTEE SAYS THE REPORT UNDERSCORES THE WORK MY COMMITTEE HAS DONE OVER THE PAST THREE YEARS IN POINTING OUT THE INADEQUACY OF FTC EFFORTS TO ENFORCE FRANCHISING RULES ACCORDING TO THE REPORT THE FTC RECEIVED MORE THAN 1360 ALLEGATIONS OF FRANCHISERULE VIOLATIONS BUT INITIATED ONLY 78 INVESTIGATIONS DURING THE FOUR YEARS ENDED LAST SEPT 30 ANOTHER FINDING THERE HAVE ONLY BEEN 30 FTC SUITS INVOLVING ITS FRANCHISE RULES OVER A NINEYEAR PERIOD IN MANY CASES FRANCHISEES HAD TO WAIT MORE THAN 19 MONTHS FOR THE FTC TO GO TO COURT THE GAO SAYS ONE PLUS FOR FRANCHISEES THE FTC HAS RECOVERED MORE THAN 37 MILLION FOR MORE THAN 30000 FRANCHISE INVESTORS THE FTC CONCEDES THAT LIMITED RESOURCES AND COMPETING PRIORITIES HOBBLE ITS FRANCHISERULE ENFORCEMENT ACTIVITY BUT A SPOKESWOMAN DEFENDS THE AGENCY'S PERFORMANCE AS REASONABLE THE FTC IS PLEASED THAT THE GAO REPORT RECOGNIZES OUR WINNING RECORD AGAINST FRANCHISERULE VIOLATORS SHE ADDS ACTIVIST FRANCHISEES COMPLAIN OF RETALIATION AT JACK IN THE BOX A JANUARY OUTBREAK OF FOOD POISONING FROM TAINTED HAMBURGERS AT JACK IN THE BOX RESTAURANTS PRECIPITATED A CRISIS FOR THE CHAIN FRANCHISEES CONCERNED ABOUT THEIR ECONOMIC SURVIVAL SOON FORMED AN INDEPENDENT ASSOCIATION TO SEEK FINANCIAL HELP FROM THE FRANCHISER FOODMAKER INC IN SAN DIEGO THE FRANCHISEES SAY THEY THUS GOT A BREAK ON RENT AND COMMISSARY PAYMENTS BUT ALSO SOME NEW HEADACHES REALIZING THAT THE FRANCHISEES' STRENGTH AND SOURCE OF BARGAINING POWER LAY IN THEIR ASSOCIATION FOODMAKER HAS DONE EVERYTHING POSSIBLE TO BREAK IT UP SAID MITCHELL S SHAPIRO A LOS ANGELES ATTORNEY FOR THE FRANCHISEES IN A LETTER THIS MONTH SEEKING AN INVESTIGATION BY CALIFORNIA'S DEPARTMENT OF CORPORATIONS MR SHAPIRO ALLEGED THAT FOODMAKER HAD VIOLATED A STATE LAW PROTECTING FRANCHISEES' RIGHT TO BAND TOGETHER HE SAID THE COMPANY HAD USED COERCION THREATS AND PROMISES AIMED AT GETTING ASSOCIATION MEMBERS TO DROP OUT ACCORDING TO THE LETTER FOODMAKER STEPPED UP ITS ALLEGED EFFORTS TO BREAK UP THE ASSOCIATION AFTER FRANCHISEES EARLIER THIS MONTH FILED A LAWSUIT IN SAN DIEGO SUPERIOR COURT AGAINST THE FRANCHISER AND OTHERS IN PART THE SUIT ALLEGED THAT THE TAINTEDMEAT EPISODE REFLECTED THE FRANCHISER'S FAILURE TO MAINTAIN QUALITY CONTROLS FOODMAKER SAYS THE SUIT IS WITHOUT MERIT FRANCHISEES AND THE COMPANY ARE NEGOTIATING A SETTLEMENT OF THE SUIT ACCORDING TO PEOPLE CLOSE TO THE DISPUTE IF THEY REACH A SETTLEMENT THESE PEOPLE SAY THE FRANCHISEES ARE EXPECTED TO SEEK TO WITHDRAW THEIR COMPLAINT TO CALIFORNIA OFFICIALS CRITICS OF FRANCHISERS HAVE LONG COMPLAINED THAT DISSIDENT FRANCHISEES OFTEN ONLY COMPOUND THEIR PROBLEMS BY SPEAKING OUT AN INDUSTRY CODE OF ETHICS HOWEVER STATES THAT FRANCHISERS SHALL NOT PROHIBIT A FRANCHISEE FROM FORMING JOINING OR PARTICIPATING IN ANY FRANCHISEE ASSOCIATION A FOODMAKER SPOKESWOMAN SAID THE COMPANY IS OUTRAGED BY THE ALLEGATIONS THAT IT TRIED TO BREAK UP THE NEW ASSOCIATION BRIEFS YET ANOTHER FRANCHISER ORIGINAL GREAT AMERICAN CHOCOLATE CHIP COOKIE CO IN ATLANTA SAYS IT WILL ATTEMPT TO PUT OUTLETS IN AIRPORTS HOSPITALS AND SPORTS COMPLEXES MAIL BOXES ETC A SAN DIEGO BUSINESSSERVICES FRANCHISER SAYS IT HAS SIGNED UP MASTER LICENSEES IN ARGENTINA TURKEY AND NETHERLANDS ANTILLES TO SPREAD THE CHAIN TO 10 MORE COUNTRIES FOR A TOTAL OF 21 BESIDES THE US 9307260161 930726 POLITICS & POLICY ADVOCATE FOR THE POOR RESPECTED ON ALL SIDES SECURES A PIVOTAL ROLE IN EXPANDING TAX CREDIT BY TIMOTHY NOAH AND LAURIE MCGINLEY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A CAPITOL ELEVATOR IS AN UNLIKELY SPOT FOR A LEGISLATIVE STRATEGY SESSION BUT WHEN REP CHARLES RANGEL A KEY MEMBER OF THE HOUSE WAYS AND MEANS COMMITTEE FOUND HIMSELF THRUST TOGETHER WITH ROBERT GREENSTEIN OF THE CENTER ON BUDGET AND POLICY PRIORITIES THE OTHER DAY THE CONVERSATION TURNED QUICKLY TO THE FATE OF THE EXPANSION OF THE EARNED INCOME TAX CREDIT A MAJOR PROVISION IN THE MAMMOTH TAX BILL BEING NEGOTIATED BY THE HOUSE AND SENATE MR GREENSTEIN IS THE GODFATHER OF THE PLAN TO EXPAND THE TAX CREDIT WHICH IS DESIGNED TO REWARD LOWINCOME FAMILIES FOR PARTICIPATING IN THE WORK FORCE AND WHICH IS AN ISSUE OF INTENSE INTEREST TO MR RANGEL BUT MORE THAN THAT THE NEW YORK DEMOCRAT SAYS HE IS A VALUABLE GOBETWEEN BOTH TALKING WITH MEMBERS OF THE ADMINISTRATION THAT ARE GOING TO INFLUENCE THIS DECISION AND SHARING WITH US WHAT THEY ARE SAYING AND PROVIDING A BETTER UNDERSTANDING OF WHERE OUR SUPPORT IS AMONG MEMBERS OF THE CONFERENCE COMMITTEE ALL BUT UNKNOWN TO THE PUBLIC AT LARGE MR GREENSTEIN IS ONE OF A HANDFUL OF OUTSIDERS WHO ARE KEY PLAYERS IN THE KNOTTY HOUSESENATE NEGOTIATIONS INDEED THE LOQUACIOUS MR GREENSTEIN WHO MAKES 85000 A YEAR AS DIRECTOR OF THE NONPROFIT THINK TANK HAS THE KIND OF INFLUENCE THAT THE 400ANHOUR CORPORATE LOBBYISTS SWARMING OVER THE CONFERENCE WOULD KILL FOR THE EARNED INCOME TAX CREDIT IS ONE OF THE FEW ANTIPOVERTY PROGRAMS THAT IS GENERALLY POPULAR WITH BOTH LIBERALS AND CONSERVATIVES MR GREENSTEIN HELPED THE CLINTON ADMINISTRATION DESIGN THE PROVISION IN ITS PACKAGE AND PEOPLE ON ALL SIDES OF THE ISSUE ACKNOWLEDGE THAT A NOD FROM HIM WILL BE CRUCIAL TO ANY DEAL HAMMERED OUT IN THE CONFERENCE COMMITTEE THE UNIVERSE OF PEOPLE WHO FRET PROFESSIONALLY ABOUT ISSUES AFFECTING THE POOR GENERALLY DIVIDES INTO THINKERS MOST OF THEM ACADEMICS WHO CRUNCH NUMBERS AND SIFT EVIDENCE ABOUT THE EFFICACY OF PROGRAMS AND DOERS OFTEN GOVERNMENT OFFICIALS AND PRIVATESECTOR ADVOCATES WHO FIGHT FOR SPECIFIC POLICY CHANGES MR GREENSTEIN THOUGH COMFORTABLY OCCUPIES BOTH NICHES HIS 12YEAROLD 35PERSON THINKTANKWHICH IS FUNDED TO A LARGE EXTENT WITH MONEY FROM SUCH ORGANIZATIONS AS THE FORD ROCKEFELLER ANNIE E CASEY AND CHARLES STEWART MOTT FOUNDATIONS ALONG WITH WHAT HE TERMS A TINY AMOUNT OF UNION MONEYPRODUCES RAPIDFIRE RELIABLE DATA ON THE BUDGETARY EFFECTS OF LEGISLATIVE PROPOSALS WHILE AT THE SAME TIME VIGOROUSLY LOBBYING TO DEFEND THE INTERESTS OF THE POOR HE'S ONE OF THE MOST CREATIVE POLICY ANALYSTS IN THE COUNTRY SAYS UNIVERSITY OF CHICAGO SOCIOLOGIST WILLIAM JULIUS WILSON AN INFLUENTIAL POVERTY SCHOLAR WHEN HE REACHES CONCLUSIONS THEY'RE BACKED UP BY SYSTEMATIC EVIDENCE IN THE DEBATE OVER THE EARNED INCOME TAX CREDIT MR GREENSTEIN STARTS WITH A CLEAR PREFERENCE FOR THE ADMINISTRATION'S AND THE HOUSE'S 28 BILLION EXPANSION PROPOSAL OVER THE SENATE'S MORE MODEST 183 BILLION EXPANSION TREASURY SECRETARY LLOYD BENTSEN PREDICTED OVER THE WEEKEND THAT THE FINAL COMPROMISE WOULD END UP SOMEWHERE AROUND 18 BILLION OR 19 BILLION ALTHOUGH THE CONGRESSIONAL BLACK CAUCUS IS HOLDING UP FOR A FEW BILLION MORE MR GREENSTEIN'S UNDERSTANDING OF HOW THE WASHINGTON GAME IS PLAYED TENDS TO WIN HIM RESPECT EVEN FROM BUSINESS LOBBYISTS WHO DON'T NECESSARILY SHARE HIS AGENDA GREENSTEIN IS EFFECTIVE BECAUSE HE'S PERCEIVED AS DOING HIS HOMEWORK AND HE ALSO UNDERSTANDS POLITICS SAYS MARK BLOOMFIELD PRESIDENT OF THE BIG BUSINESSBACKED AMERICAN COUNCIL FOR CAPITAL FORMATION ADDS DAVE JOHNSON A FORMER REPUBLICAN SENATE STAFFER WHO IS NOW WITH CAPITOL ASSOCIATES A GOVERNMENTRELATIONS FIRM THAT REPRESENTS CORPORATIONS AND NONPROFIT HEALTHCARE GROUPS HE'S EVENHANDED HE'S EQUALLY WILLING TO DAMN OR PRAISE REPUBLICANS OR DEMOCRATS DEPENDING ON WHAT THEY SAY UNDER PRESIDENT CLINTON'S PROPOSAL THE EARNED INCOME TAX CREDIT WOULD FOR THE FIRST TIME BE AVAILABLE TO SOME CHILDLESS LOWINCOME PEOPLE AND MOST IMPORTANT WOULD INSURE THAT A FAMILY OF FOUR HEADED BY A FULLTIME WAGEEARNER WOULD NOT FALL BELOW THE POVERTY LINE THAT ASSUMES THE CENTER NOTES THAT THE FAMILY IS RECEIVING FOOD STAMPS AND THAT THE MINIMUM WAGE IS INDEXED FOR INFLATION AS PRESIDENT CLINTON PROPOSED DURING HIS CAMPAIGN THE SENATE BILL THOUGH EXCLUDES CHILDLESS WORKERS ALTHOUGH THE TAX CREDIT PROVISION'S NOTION OF REWARDS FOR WORK GENERALLY APPEALS TO CONSERVATIVES SOME QUESTION THE WISDOM OF THE HUGE INCREASE MR CLINTON AND MR GREENSTEIN ARE PUSHING MARVIN KOSTERS DIRECTOR OF ECONOMIC POLICY STUDIES AT THE AMERICAN ENTERPRISE INSTITUTE CRITICIZES EXPANDING THE CREDIT TO INCLUDE THOSE WHO MAKE AS MUCH AS 28000 THAT'S ONLY ABOUT 20 LESS THAN MR CLINTON'S 35000 SALARY AS GOVERNOR OF ARKANSAS HE NOTES MR KOSTERS ALSO ARGUES THAT THE EXPANDED CREDIT COULD ENCOURAGE THOSE WHO ARE IN THE PHASEOUT RANGE TO WORK LESS IN ORDER TO CONTINUE RECEIVING THE FULL CREDIT MR GREENSTEIN REPLIES THOUGH THAT ANY WORK DISINCENTIVES AT THE UPPER END ARE MINOR COMPARED WITH THE SUBSTANTIAL INCENTIVES FOR LOWINCOME PEOPLE TO WORK MR GREENSTEIN ASSUMED HIS KEY ROLE IN THE PRESENT DELIBERATIONS IN PART BECAUSE HE WAS WILLING TO CRITICIZE THE ADMINISTRATION'S ORIGINAL TAX CREDIT PROPOSAL WHEN IT CAME OUT EARLIER THIS YEAR HIS ORGANIZATION PRODUCED AN ANALYSIS COMPLAINING THAT IT FAVORED PEOPLE EARNING MORE THAN 20000 A YEAR AT THE EXPENSE OF THOSE WHO EARN LESS INSTEAD OF GOING PUBLIC WITH HIS CRITICISMS THOUGH MR GREENSTEIN QUIETLY CIRCULATED IT AMONG THE MANY WHITE HOUSE OFFICIALS WITH WHOM HE RETAINS CLOSE TIES ADMINISTRATION OFFICIALS SAY THE CRITIQUE EVENTUALLY REACHED MR CLINTON WHO ORDERED MR GREENSTEIN'S CRITICISMS TAKEN INTO ACCOUNT WHEN THE TAX CREDIT PROVISION WAS REDRAFTED AND WHO EXPRESSED GRATITUDE THAT MR GREENSTEIN HAD RESISTED THE TEMPTATION TO GENERATE A GOOD STORY OVER THE MATTER WHILE MR GREENSTEIN IS EFFECTIVE IN WORKING BEHIND THE SCENES HE ALSO IS SKILLED AT CREATING FAVORABLE PUBLICITY HIS ANALYSTS PROVIDE REPORTERS WITH SAMEDAY ANALYSES OF FEDERAL BUDGETS AND HE IS EMINENTLY QUOTABLE AND POLITICIANS APPRECIATE THAT HE OFTEN COUPLES PLEADINGS FOR MONEY IN ONE AREA WITH SUGGESTIONS TO CUT SPENDING ELSEWHERE FOR EXAMPLE HE PROPOSES TO PAY FOR THE MORE GENEROUS HOUSE VERSION OF THE EARNED INCOME TAX CREDIT EXPANSION BY EMBRACING THE SENATE'S MEDICARE REDUCTIONS MR GREENSTEIN'S INFLUENCE OUTSTRIPS THE TIME AND MONEY HE SPENDS ON DIRECTLY LOBBYING MEMBERS OF CONGRESS WHICH IS RESTRICTED BY TAX RULES ON NONPROFIT GROUPS HE SAYS HE SPENDS A MODEST AMOUNT OF HIS TIME ON LOBBYING ALONG WITH THE CENTER'S PARTTIME LOBBYIST ELLEN NISSENBAUM HIS TIES TO THE CLINTON TEAM PREDATE THE START OF THE ADMINISTRATION AS GOVERNOR OF ARKANSAS MR CLINTON INVITED HIM TO MEET WITH THE STATE TAX COMMISSION AFTER HIS GROUP PRODUCED A REPORT CRITICIZING ARKANSAS'S TAX TREATMENT OF PEOPLE BELOW THE POVERTY LINE MR GREENSTEIN ALSO SERVED ON THE PRESIDENTIAL TRANSITION TEAM AND DECLINED A HIGHLEVEL WHITE HOUSE BUDGET OFFICE JOB NOW HE OFTEN TALKS TO SUCH WHITE HOUSE AIDES AS BUDGET CHIEF LEON PANETTA GENE SPERLING A TOP OFFICIAL OF THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL AND CAROL RASCO THE PRESIDENT'S SENIOR DOMESTIC POLICY ADVISER ON CAPITOL HILL HE TALKS TO SUCH INFLUENTIAL DEMOCRATIC LIBERALS AS REP RANGEL AND SENS BILL BRADLEY OF NEW JERSEY AND JAY ROCKEFELLER OF WEST VIRGINIA SO MANY OTHER PEOPLE COME AND PRESENT YOU WITH ONE SIDE OF THE ISSUE SAYS MR SPERLING YOU CAN'T TRUST WHAT THEY GIVE YOU IT'S JUST PROPAGANDA IN CONTRAST HE SAYS MR GREENSTEIN PROVIDES VERY SERIOUS THOROUGH RESEARCH HE'S THE CONSCIENCE OF WASHINGTON