NEW YORK TWO COMPANIES CONTROLLED BY CINCINNATI INVESTOR CARL H LINDNER RECEIVED DEBT RATING DOWNGRADES BY MOODY'S INVESTORS SERVICE INC MOODY'S DOWNGRADED THE SUBORDINATED DEBT RATING OF AMERICAN ANNUITY GROUP INC WHICH IS 82 OWNED BY MR LINDNER'S HOLDING COMPANY AMERICAN FINANCIAL CORP AND THE SUBORDINATED DEBT RATING OF PENN CENTRAL CORP WHOSE CONTROLLING SHAREHOLDER IS AMERICAN FINANCIAL THE DOWNGRADE AFFECTS 125 MILLION OF ANNUITY GROUP DEBT AND 500 MILLION OF PENN CENTRAL DEBT THE RATING AGENCY SAID CLOSELY HELD AMERICAN FINANCIAL CARRIES HIGH LEVERAGE AND HOLDS SIGNIFICANT EQUITY POSITIONS IN SOME SUBSIDIARIES CURRENTLY UNDERGOING FINANCIAL STRESS THESE INCLUDE GREAT AMERICAN COMMUNICATIONS CO A CINCINNATIBASED BROADCASTING COMPANY THAT HAS FILED A PREPACKAGED REORGANIZATION PLAN A SPOKESMAN FOR AMERICAN FINANCIAL SAID HE WAS SURPRISED AND DISAPPOINTED BY THE AMERICAN ANNUITY DOWNGRADE AND ADDED I DON'T THINK THEY MOODY'S UNDERSTAND THE FINANCIAL STRUCTURE OF AMERICAN ANNUITY AND AMERICIAN FINANCIAL THE SPOKESMAN SAID AMERICAN FINANCIAL HAS ALREADY ACCOUNTED FOR THE IMPACT OF THE GREAT AMERICAN COMMUNICATIONS REORGANIZATION A SPOKESMAN FOR PENN CENTRAL HAD NO COMMENT ON THAT COMPANY'S DOWNGRADE MOODY'S HAD PUT AMERICAN ANNUITY ON REVIEW FOR A POSSIBLE DOWNGRADE IN FEBRUARY TO DETERMINE THE IMPACT OF THE GREAT AMERICAN COMMUNICATIONS PREPACKAGED REORGANIZATION HOWEVER MOODY'S SAID IT CONCLUDED THAT AMERICAN ANNUITY WHICH ISN'T AN INVESTOR IN GREAT AMERICAN COMMUNICATIONS WON'T BE AFFECTED BY THE REORGANIZATION THE RATING AGENCY SAID ITS DECISION TO DOWNGRADE AMERICAN ANNUITY TO B2 REFLECTS THE COMPANY'S FINANCIAL LEVERAGE AS WELL AS ANY POTENTIAL STRAIN ON THE COMPANY'S ABILITY TO SERVICE DEBT BECAUSE OF ITS OWNERSHIP BY AMERICAN FINANCIAL AMERICAN ANNUITY SELLS TAXDEFERRED ANNUITIES TO TEACHERS AND EMPLOYEES OF NONPROFIT ORGANIZATIONS IN DOWNGRADING PENN CENTRAL'S DEBT TO BAA3 FROM BAA2 MOODY'S CITED GROWING CONCERNS ABOUT THE CREDIT QUALITY OF THE COMPANY'S CONTROLLING SHAREHOLDERS INCLUDING AMERICAN FINANCIAL MOODY'S ADDED HOWEVER THAT AMERICAN FINANCIAL'S PLAN TO REDUCE ITS PENN CENTRAL OWNERSHIP TO SLIGHTLY MORE THAN 40 FROM MORE THAN 50 EASES SOME OF ITS CONCERNS PENN CENTRAL IS A SPECIALTY PROPERTY AND CASUALTY INSURER 9307260159 930726 INTERNATIONAL LIKE SAMURAI DRAMA BLOODY GANG WAR UNFOLDS ON THE STREETS OF JAPAN'S CITIES BY JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO ASK VISITORS TO JAPAN WHAT THEY THINK OF THE PLACE AND THEY WILL INEVITABLY SAY FIRST HOW SAFE IT IS TRUE ENOUGH YOU CAN WALK FROM ONE END OF TOKYO TO ANOTHER AT MIDNIGHT WITH NARY A WORRY ABOUT MUGGERS IN THIS CITY OF 12 MILLION THERE WERE ONLY 121 HOMICIDES LAST YEAR A TINY FRACTION OF THE NUMBER IN MOST BIG US CITIES BUT ONCE EVERY FEW YEARS JAPAN HAS ITS OWN BLOODLETTING AND THAT'S WHAT HAS BEEN HAPPENING LATELY FOR THE PAST WEEK TWO BIG UNDERWORLD GANGS HAVE WAGED A TURF WAR OVER THE LUCRATIVE TOKYO MARKET THE 23000MEMBER YAMAGUCHIGUMI OF KOBE WANTS IN THE 2300STRONG KYOKUTOKAI OF TOKYO WANTS TO KEEP ITS RIVAL OUT SO FAR THREE GANG MEMBERS HAVE BEEN KILLED AND SIX WOUNDED IN 42 SHOOTOUTS AND OTHER INCIDENTS THROUGHOUT JAPAN THOSE NUMBERS MIGHT NOT BE CAUSE FOR CONCERN BY NEW YORK STANDARDS BUT IN JAPAN ALARMS ARE SOUNDING THE NATIONAL POLICE AGENCY HELD AN EMERGENCY SESSION FOR ITS ANTIGANG COPS FROM AROUND THE NATION TO TALK STRATEGY THEN IT RAIDED OFFICES OF BOTH GANGS CALLED YAKUZA IN TOKYO AND WESTERN JAPAN IN A NATION WHERE EVEN A SCUFFLE BETWEEN ADULTS IS RARE AND WHERE MOST DAILY DISPUTES ARE RESOLVED WITH A VERBAL PUTDOWN OR A NASTY LOOK GANG WARS ARE VIEWED AS HORRIFYING THEATER OF SORTS MANY JAPANESE ARE AT ONCE FRIGHTENED AND INTRIGUED BY THESE SOMETIMES FEUDAL DRAMAS STRUGGLES OVER LOST HONOR OR AN OFFENSE TAKEN THAT ARE BROUGHT TO THE MODERN STAGE WITH PISTOLS AND FAST CARS THE WAR THIS TIME HAS GOTTEN LENGTHY PLAY ON THE EVENING NEWS WITH BROADCASTS SHOWING BULLET HOLES IN DOORS AND CHALK MARKS LEFT BY THE POLICE ON SIDEWALKS THE POLICE SHOULD CONTROL THE YAKUZA SAYS YOSHITO HORI A WORRIED BUSINESSMAN IN TOKYO IF THE EVENTS HAPPENED NEXT TO YOUR HOUSE YOU'D BE SCARED WHILE THE REVULSION IS GENUINE JAPAN'S FASCINATION WITH THESE OUTLAWS IS TOO THE PUBLIC MAY ABHOR DAILY VIOLENCE BUT IT HEARTILY INDULGES IN THE BLOODANDGUTS OF A GOOD YAKUZA NOVEL OR MOVIE ONE TOKYO VIDEORENTAL SHOPKEEPER RECOMMENDS THE POPULAR CLASSIC JINGI NAKI TATAKAI OR WAR WITHOUT A CODE OF CONDUCT A TALE OF BETRAYAL AND REVENGE TOLD BENEATH A VERITABLE FOUNTAIN OF BLOOD NOTES EIJI MATSUSAKA A 34YEAROLD PHOTOGRAPHER IN TOKYO REFERRING TO THE LATEST GANG FIGHT FOR THE JAPANESE IT'S JUST LIKE WATCHING A SAMURAI DRAMA THE POLICE ESTIMATE THERE ARE 3500 YAKUZA GROUPS IN JAPAN WITH ABOUT 56000 CORE MEMBERS AND ANOTHER 35000 HANGERSON THEY OPERATE A VAST NETWORK OF SHAKEDOWN OPERATIONS THROUGHOUT THE NATION SOMETIMES IT'S UNDER THE NOSES OF THE POLICE OR AT THE HIGHEST LEVELS OF BUSINESS AND POLITICS AND THAT HAS GOTTEN THE YAKUZA WIDESPREAD ATTENTION IN RECENT YEARS IN ONE WELLKNOWN CASE THE YAKUZA ALLEGEDLY SERVED AS MUSCLE FOR THE CAMPAIGN OF NOBORU TAKESHITA A FORMER PRIME MINISTER AND JUST THIS MONTH THE CHAIRMAN OF KIRIN BREWERY CO SAID HE WOULD RESIGN AFTER HIS COMPANY ADMITTED IT PAID OFF UNDERWORLD FIGURES TO KEEP THEM FROM DISRUPTING THE COMPANY'S ANNUAL MEETING EVERY FEW YEARS THE YAKUZA SETTLE SCORES OR EXPAND INTO NEW TURF BEHIND AN EXPLOSION OF VIOLENCE THAT CLAIMS GANG MEMBERS POLICE AND PASSERSBY LAST WEEK'S GANG BATTLE WAS SPARKED BY AN INCIDENT IN SAPPORO IN WHICH A LEADER OF THE KYOKUTOKAI KNIFED A BOSS OF THE YAMAGUCHIGUMI IN A DISPUTE OVER MONEY SOON THE VIOLENCE SPREAD IN TOKYO'S IKEBUKURO NEIGHBORHOOD THE HIT WAS MADE IN BROAD DAYLIGHT PARTLY IN FRONT OF THIS REPORTER AND A CROWD OF SHOPPERS OUT ENJOYING THE WARM DAY THE SCENE PLAYED LIKE A BAD GANGSTER MOVIE LOCAL TOUGHS WEARING OVERSIZED SUITS BURST ONTO THE STREET IN HOT PURSUIT OF MEMBERS OF THE KYOKUTOKAI THE LEADER OF THE GROUP WAS IN SUCH A RUSH THAT HE APPARENTLY FORGOT HIS BELT AND RAN DOWN THE STREET HOLDING UP HIS PANTS WITH ONE HAND WHILE BARKING ORDERS INTO A CELLULAR PHONE HELD IN THE OTHER THESE WERE THOROUGHLY MODERN YAKUZA FOR THOUGH THE LEADER'S HENCHMEN WERE JUST A FEW FEET AWAY SOME RIDING IN A BLACK SEDAN THEY ANSWERED HIM THROUGH THEIR OWN MOBILE PHONES THE GROUP FRANTICALLY SEARCHED SIDE STREETS AND LANES OBLIVIOUS TO THE GATHERING CROWD AND THEN DISAPPEARED FROM VIEW NOT LONG AFTER HOWEVER THE SOUND OF AMBULANCE SIRENS HERALDED THE SUCCESS OF THE HUNT A COUPLE OF BLOCKS AWAY THE BODY OF A YOUNG MAN LAY SLUMPED ON THE SIDEWALK HE HAD BEEN SHOT IN THE STOMACH AND HIS FIST GRIPPED THE SPREADING BLOOD STAIN ON HIS SHIRT MEDICS HOISTED THE KYOKUTOKAI MEMBER HIS FACE GRIMACING IN PAIN ONTO A STRETCHER POLICE LATER SAID HE SURVIVED THE ATTACK LAST YEAR JAPAN ENACTED A NEW ANTIGANG LAW THAT HAS MADE IT EASIER FOR POLICE TO RAID AND CLOSE DOWN YAKUZA OFFICES ON FRIDAY THE POLICE RELEASED A POLL THAT SUGGESTED THE LAW HAS LEFT GANGS FEELING INCREASINGLY PUT UPON A MAJORITY OF THE YAKUZA THE POLICE SURVEYED SAID PUBLIC ATTITUDES TOWARD THEM HAVE WORSENED AND COMPLAINED THAT IT'S GOTTEN TOUGHER TO MAKE MONEY THE YAKUZA ALSO SAID THEY'VE BECOME MORE PRUDENT PRUDENT BY YAKUZA STANDARDS PERHAPS SO THE LATEST VIOLENT GANG WARFARE MAY ALREADY BE PASSING THERE WERE REPORTS AT THE END OF LAST WEEK THAT THE YAMAGUCHIGUMI AND THE KYOKUTOKAI HAVE SETTLED THEIR DIFFERENCES AND CALLED A TRUCE AT LEAST FOR NOW 9307260158 930726 LAW LEGAL BEAT LAW FIRMS JOIN FIGHT OVER GAYS IN THE MILITARY BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LAWYERS AT MAJOR CORPORATE LAW FIRMS ARE LINING UP TO REPRESENT HOMOSEXUAL SOLDIERS IN BATTLES WITH THE MILITARY MOVING THE FIRMS INTO UNFAMILIAR AND SOMETIMES UNCOMFORTABLE TERRAIN THE LATEST FIGHT INVOLVES COURT CHALLENGES TO PRESIDENT CLINTON'S NEW DON'T ASK DON'T TELL DON'T PURSUE POLICY SUCH PROMINENT FIRMS AS NEW YORK'S WACHTELL LIPTON ROSEN & KATZ SAN FRANCISCO'S MORRISON & FOERSTER AND WASHINGTON'S COVINGTON & BURLING ARE NOW LITIGATING OR PLANNING TO FILE CASES ATTACKING THE PLAN WHICH LIMITS THE RIGHT OF ARMED SERVICE PERSONNEL TO EXPRESS HOMOSEXUALITY SOME OTHER FIRMS WITH CORPORATE CLIENTS HAVE BALKED AT ACCEPTING THESE CASES OR IF THEY HAVE TAKEN THEM HAVE BEEN RELUCTANT TO TALK ABOUT THEM PUBLICLY FEARFUL OF ALIENATING OTHER CLIENTS OR PROVOKING DISCORD AMONG THEIR MEMBERS THAT CONTRASTS WITH FIRMS' USUAL POSITIVE ATTITUDE TOWARD PUBLIC INTEREST CASES WHICH PROVIDE TRAINING TO YOUNG LAWYERS FULFILL PUBLIC SERVICE COMMITMENTS AND ENHANCE THE FIRMS' IMAGE THE FIRMS ARE CONCERNED ABOUT THEIR VERY CONSERVATIVE CLIENTS AND CLIENTS THAT ARE DEFENSE CONTRACTORS SAYS MICHELLE BENECKE A LAWYER AT THE CAMPAIGN FOR MILITARY SERVICE A GAYRIGHTS ORGANIZATION SOME HOMOSEXUAL ADVOCATES SAY THEY BELIEVE LAW FIRMS CITE CONFLICTS OF INTEREST WITH DEFENSEINDUSTRY CLIENTS MERELY AS AN EXCUSE TO REJECT GAYRELATED CASES AT LEAST 14 HOMOSEXUAL MILITARY PERSONS ARE SUING OR PLANNING TO SUE IN FEDERAL COURT TO HALT DISCHARGE PROCEEDINGS AGAINST THEM AND OTHER DISPUTES ARE PENDING IN MILITARY TRIBUNALS ABOUT 10 OF THESE PEOPLE ARE REPRESENTED FREEOFCHARGE BY BIG FIRMS EITHER ALONE OR IN COOPERATION WITH THE AMERICAN CIVIL LIBERTIES UNION OR THE GAYRIGHTS FIRM LAMBDA LEGAL DEFENSE & EDUCATION FUND MANY OF THE CASES WERE FILED BY SOLDIERS WHO REVEALED THEIR HOMOSEXUALITY THIS YEAR EMBOLDENED BY PRESIDENT CLINTON'S CAMPAIGN PLEDGE TO LIFT THE PENTAGON'S BAN ON GAYS DISCHARGES CONTINUE BUT SERVICE MEMBERS WHO SAY THEY ARE GAY CAN REQUEST TO BE PLACED ON INACTIVE STATUS PENDING IMPLEMENTATION OF THE NEW COMPROMISE POLICY WHICH WAS ANNOUNCED LAST WEEK AND IS SCHEDULED TO TAKE EFFECT OCT THE SOLDIERS' LAWYERS ARGUE THE NEW POLICY VIOLATES THE FIRST AMENDMENT AND OTHER CONSTITUTIONAL RIGHTS BECAUSE A PUBLIC DECLARATION OF HOMOSEXUALITY REMAINS A GROUND FOR DISCHARGE FOR EXAMPLE ZOE DUNNING A NAVY RESERVE LIEUTENANT WHO SPOKE ABOUT HER LESBIANISM AT A RALLY AGAINST THE BAN IN JANUARY SAYS SHE EXPECTS THE NAVY TO CONTINUE ITS EFFORT TO EXPEL HER HER ATTORNEYS AT MORRISON & FOERSTER A 400LAWYER FIRM HAVE BEEN ABSOLUTELY WONDERFUL SHE SAYS BUT FINDING REPRESENTATION WASN'T EASY BEFORE MORRISON & FOERSTER TOOK HER CASE LT DUNNING SAYS ANOTHER LARGE SAN FRANCISCO FIRM TURNED IT DOWN EVEN THOUGH A LAWYER THERE TRIED HARD TO INTEREST HIS COLLEAGUES THEY KIND OF SAID WELL WE'RE A LITTLE HESITANT DUE TO THE PUBLICITY IT WOULD GENERATE AND BECAUSE OF CONFLICTS WITH OUR CLIENTS' SHE SAYS DECLINING TO NAME THE FIRM JOHN M SANGER A PARTNER AT SAN FRANCISCO'S PETTIT & MARTIN ACKNOWLEDGES RECEIVING A REQUEST FROM AN ATTORNEY WHO WAS AFFILIATED WITH THE FIRM TO REPRESENT LT DUNNING ON A LIMITED BASIS MR SANGER SAID HE APPROVED THE REQUEST BUT THE MATTER WASN'T PURSUED AFTER THE LAWYER LEFT THE FIRM ONE REASON THE MATTER WASN'T TAKEN UP I'M SURE IS THAT WE DIDN'T HAVE ANY CAPACITY IN THE LITIGATION DEPARTMENT MR SANGER SAYS NOTING THAT PETTIT & MARTIN REPRESENTS A LARGE NUMBER OF DEFENSE CONTRACTORS IN SOME INSTANCES FIRMS WILLING TO TAKE ON GAY MILITARY CLIENTS HAVE TURNED PRESSSHY AFTER TWO LAWYERS IN THE LOS ANGELES OFFICE OF NEW YORK'S WHITE & CASE SCORED A MAJOR VICTORY IN JANUARY A LOCAL FEDERAL JUDGE RULED THE GAY BAN UNCONSTITUTIONAL THEY SPOKE ABOUT IT TO THE MEDIA THAT ANNOYED SOME PARTNERS IN THE HOME OFFICE NEW YORK CALLED AND SAID THERE WAS NO LONGER TO BE ANY MORE CONTACT WITH THE PRESS ON THIS AND PART OF THE REASON THEY DIDN'T WANT PRESS WAS THEY WERE EMBARRASSED BY THE CASE SAYS JOHN MCGUIRE THE ASSOCIATE WHO REPRESENTED KEITH MEINHOLD A NAVY SONAR INSTRUCTOR DISCHARGED AFTER DECLARING HIS HOMOSEXUALITY ON TELEVISION LAST YEAR INDEED ALTHOUGH THE MEINHOLD LITIGATION WAS STRONGLY SUPPORTED BY MANY WHITE & CASE ATTORNEYS AND MORE THAN 400000 OF UNPAID LAWYERHOURS AND COSTS WERE DEVOTED TO THE CASE IT DIDN'T RATE A MENTION IN THE FIRM'S MONTHLY INHOUSE NEWSLETTER WHICH ALWAYS LISTS VICTORIES MR MCGUIRE SAYS AT ONE POINT THE PARTNER ON THE CASE SENT A MEMO TO A COLLEAGUE NOTING THAT THE RECEPTION WITHIN THE FIRM HAS BEEN SOMETHING LESS THAN PLEASANT ALLAN GROPPER WHO HEADS WHITE & CASE'S PRO BONO PRACTICE SAYS THAT WE AS LAWYERS DO NOT TRY OUR CASES IN THE PRESS AND THAT QUESTIONS ABOUT THE CASE SHOULD HAVE BEEN REFERRED TO A GAYRIGHTS ORGANIZATION WE THINK THAT PRESS RELATIONS ARE PROPERLY A SUBJECT FOR THEIR EXPERTISE AND OUR JOB IS TO PRESENT THE LEGAL ARGUMENTS IN COURT AS BEST WE CAN HE SAYS MR MCGUIRE LEFT WHITE & CASE THIS YEAR CITING AMONG OTHER REASONS THE PROBLEM HE WAS HAVING WITH THE DIRECTIVE TO KEEP THINGS QUIET HE TOOK THE MEINHOLD CASE WITH HIM TO THE LOS ANGELES OFFICE OF NEW YORK'S KAYE SCHOLER FIERMAN HAYS & HANDLER WHERE HE SAYS THE LAWYERS ARE NOTHING SHORT OF EXTREMELY ENTHUSIASTIC PETTY OFFICER MEINHOLD WAS REINSTATED TO THE NAVY IN JANUARY BUT THE JUSTICE DEPARTMENT IS APPEALING THE JUDGE'S RULING AT CLEVELAND'S SQUIRE SANDERS & DEMPSEY THERE WAS SOME DISCUSSION AND CERTAINLY A FEW EYEBROWS RAISED BEFORE THE FIRM ACCEPTED A CASE ON BEHALF OF DISCHARGED AIR FORCE STAFF SERGEANT THOMAS PANICCIA SAYS ASSOCIATE KAREN PETERS I THINK THERE WAS AN INITIAL APPREHENSION ABOUT THE PUBLICITY IT WOULD ENGENDER SHE SAYS WE HAVEN'T SOUGHT ANYTHING OUT THINGS WENT MORE SMOOTHLY AT COVINGTON & BURLING THE WASHINGTON FIRM WHICH IS REPRESENTING MARINE SGT JUSTIN ELZIE AND WHICH NEVER REFUSES CASES BECAUSE OF THE VIEW THAT IT MIGHT UPSET SOME OTHER CLIENTS SAYS LANNY BREUER A SENIOR ASSOCIATE ON THE CASE GAYRIGHTS ADVOCATES SAY BIG FIRMS HAVE BEEN INCREASINGLY HELPFUL AS THE MILITARY DEBATE BECOMES MORE WIDELY ACCEPTED AS A CIVIL RIGHTS ISSUE IN THE PAST GAY SOLDIERS COULD FIND FREE LEGAL HELP ONLY THROUGH ADVOCACY GROUPS SAYS EVAN WOLFSON A LAMBDA STAFF ATTORNEY NOW SOME FIRMS LIKE MORRISON & FOERSTER ARE EVEN ACCEPTING GAY SOLDIERS' CASES DIRECTLY MR WOLFSON DECLINES TO CRITICIZE FIRMS THAT HAVE ACCEPTED MILITARY CASES BUT HAVE PLAYED DOWN THEIR ROLE THE PARTICIPATION OF BIG FIRMS HAS CERTAINLY BEEN ESSENTIAL TO MOUNTING EFFECTIVE NATIONWIDE CHALLENGES HE SAYS THE VAST MAJORITY OF THE PEOPLE DON'T GET REPRESENTATION AT ALL THAT'S THE REAL PROBLEM WHO'S NEWS GEORGE PIERCE HAS BEEN NAMED THE FIRST GENERAL COUNSEL OF TOYOTA TSUSHO AMERICA INC A SUBSIDIARY OF TOYOTA TSUSHO CORP A MEMBER OF THE TOYOTA GROUP MR PIERCE 43 WAS AN ASSOCIATE AT THE NEW YORK LAW FIRM MUDGE ROSE GUTHRIE ALEXANDER & FERDON AND SPECIALIZED IN COMMERCIAL LITIGATION MR PIERCE SAID THE COMPANY'S GROWTH LED IT TO CREATE THE POSITION OF GENERAL COUNSEL THERE ARE OBVIOUS BENEFITS TO NOT HAVING TO GO TO OUTSIDE COUNSEL EVERY TIME A LEGAL ISSUE COMES UP HE SAID THE COMPANY'S LEGAL WORK HAS BEEN HANDLED MOSTLY BY THE NEW YORK LAW FIRM KELLEY DRYE & WARREN WHICH WILL CONTINUE TO DO WORK FOR THE INTERNATIONAL TRADING MARKETING AND DISTRIBUTION COMPANY NOTED JO ANN SHOTWELL HAS JOINED THE BOSTON LAW FIRM CHOATE HALL & STEWART AS A PARTNER IN ITS SIXLAWYER ENVIRONMENTAL GROUP MS SHOTWELL WHO RAN UNSUCCESSFULLY FOR MASSACHUSETTS ATTORNEY GENERAL IN 1986 WAS FORMERLY A PARTNER IN THE BOSTON LAW FIRM GADSBY & HANNAH 9307260157 930726 HEALTH DOCTORS LOBBY PATIENTS IN A CAMPAIGN TO SHAPE CLINTON HEALTHCARE PACKAGE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN PATIENTS IN LUBBOCK TEXAS VISIT GYNECOLOGIST TED FORSYTHE ONE OF THE THINGS THEY FIND IN THE WAITING ROOM IS A LEAFLET ENTITLED IS THE CLINTON PROPOSAL FOR HEALTH REFORM GOOD FOR YOU AND YOUR FAMILY THE LEAFLET IS POPPING UP IN OTHER DOCTORS' OFFICES ACROSS THE US THE TRACT'S TONE IS LOWKEY ASKING PATIENTS TO THINK ABOUT 10 QUESTIONS THE QUERIES FROM THE AMERICAN MEDICAL ASSOCIATION DEAL WITH THE CONCERNS MANY DOCTORS FEEL ABOUT HEALTHCARE REFORM THE AMA LEAFLET IS THE START OF WHAT IS LIKELY TO BE A MAJOR CAMPAIGN BY DOCTORS AND INSURERS TO PROTECT THEIR INTERESTS IN THE HEALTHCARE REFORM DEBATE IN SEPTEMBER THE AMA SAYS IT WILL MAIL ITS DETAILED ANALYSIS OF PRESIDENT CLINTON'S HEALTH PLAN TO ALL 630000 DOCTORS IN THE US SIMILAR MASS MAILINGS TO HEALTHINSURANCE POLICYHOLDERS ARE CONTEMPLATED BY INSURERS AND THEIR TRADE GROUPS IN THIS LOBBYING BATTLE THE AMA AND INSURANCE COMPANIES PLAN TO STRESS PEOPLE'S FREEDOM TO CHOOSE THEIR DOCTORS AND INSURERS THAT STRATEGY WILL LET THE HEALTHINDUSTRY GROUPS TAKE ISSUE WITH NEW GOVERNMENT PROGRAMS THAT MIGHT CURTAIL PEOPLE'S CHOICES AND REDUCE MEDICAL EARNINGS FREEDOM OF CHOICE COULD BE A POTENT ISSUE SAYS ROBERT BLENDON CHAIRMAN OF THE DEPARTMENT OF HEALTH POLICY AT THE HARVARD SCHOOL OF PUBLIC HEALTH A NATIONWIDE SURVEY THAT HE HELPED CONDUCT FOR THE ROBERT WOOD JOHNSON FOUNDATION THIS SPRING FOUND THAT 50 OF THE PUBLIC OPPOSES LIMITING INDIVIDUALS' CHOICES OF DOCTORS AND HOSPITALS EVEN IF DOING SO WOULD SAVE MONEY FOR A LOT OF PEOPLE CHOICE DOESN'T MATTER PROF BLENDON SAYS BUT FOR OTHERS IT'S A BIG ENOUGH ISSUE THAT THEY WON'T SUPPORT THE CLINTON PLAN IF THEY FEEL THEIR FLEXIBILITY IS BEING RESTRICTED HE SAYS SUCH WORRIES ARE ESPECIALLY COMMON AMONG PEOPLE OVER 65 PEOPLE ON THE EAST COAST AND PEOPLE IN BLUECOLLAR JOBS ALL GROUPS PRESIDENT CLINTON IS COUNTING ON FOR SUPPORT IN ITS CAMPAIGN THE AMA IS LAYING CLAIM TO DOCTORS' WAITING ROOMS WHEN THE AMA SENDS DOCTORS ITS 10QUESTION MEMO IT INCLUDES THE FOLLOWING INSTRUCTIONS HELP YOUR PATIENTS ASK THE RIGHT QUESTIONS ABOUT HEALTH REFORM CUT OUT THE CHECKLIST BELOW AND MAKE PHOTOCOPIES FOR YOUR RECEPTION AREA THAT IS WHAT SANTA ANA CALIF PLASTIC SURGEON ROBERT MINER IS DOING VISITORS TO HIS OFFICES GET TO READ SUCH QUESTIONS AS WILL I STILL BE ABLE TO SEE MY OWN DOCTOR WILL I HAVE TO PAY EXTRA AND WILL MY DOCTOR AND I BE FREE TO DECIDE HOW TO TREAT MY ILLNESS IT'S IMPORTANT TO THE CONTINUITY OF CARE DR MINER SAYS OF CHOOSING ONE'S DOCTOR A DOCTOR IS DEALING WITH SOMETHING VERY PRIVATE TO HAVE A HEALTH PLAN WHERE YOU CAN'T GO BACK AND SEE SOMEONE YOU'VE SEEN FOR 20 YEARS IS VERY UPSETTING BOTH TO THE DOCTOR AND THE PATIENT SUCH PROCHOICE RHETORIC MAY HAVE ITS BIGGEST IMPACT IN SOWING PUBLIC DOUBTS ABOUT MANAGEDCARE SYSTEMS IN WHICH PATIENTS ARE GUIDED TOWARD DOCTORS AND HOSPITALS THAT ARE FOUND TO PROVIDE THE MOST COSTEFFECTIVE CARE WHITE HOUSE STRATEGISTS HAVE INDICATED THEY FAVOR MANAGED CARE INCLUDING THE CREATION OF ALLIANCES THAT WOULD BUY HEALTH CARE FOR 100000 OR MORE MEMBERS AT A TIME IN RECENT WEEKS PRESIDENT CLINTON AND THE FIRST LADY HILLARY RODHAM CLINTON HAVE TEMPERED THE ADMINISTRATION'S POSITION BY SAYING THAT THEY ALSO FAVOR PATIENTS' RIGHT TO CHOOSE A HEALTH PLAN AND TO CHOOSE DOCTORS WITHIN A PLAN BUT IN SUCH A SYSTEM IT IS UNCLEAR WHETHER PATIENTS' INSURANCE COVERAGE WOULD LET THEM SEE DOCTORS WHO DON'T BELONG TO ANY HEALTH PLAN SOME DOCTORS BELIEVE THE PROPOSED SYSTEM WOULD HURT THEIR EARNINGS AND ADD TO BUREAUCRATIC HASSLES RICHARD MCDUFFIE A UROLOGIST IN EUGENE ORE SAYS HE WORRIES THAT DOCTORPATIENT TRUST MAY BE ERODED TO THE POINT THAT PATIENTS WON'T COMPLY WITH THEIR PHYSICIAN'S INSTRUCTIONS DR MCDUFFIE ALSO SAYS HE HAS RESERVATIONS ABOUT MANAGEDCARE SYSTEMS IN WHICH PATIENTS CAN'T SEE A SPECIALIST WITHOUT FIRST GETTING A REFERRAL FROM THEIR PRIMARYCARE DOCTOR WE ALREADY HAVE PEOPLE COMING IN OUR OFFICES THAT WE CAN'T TREAT BECAUSE THEY DON'T HAVE A REFERRAL HE SAYS DR MCDUFFIE SAYS HE HAS BEEN SHARING HIS CONCERNS WITH PATIENTS AND USING AMA LITERATURE TO HELP MAKE HIS POINTS RATHER THAN DIRECTLY FIGHT AN EXPANDED ROLE FOR MANAGED CARE THE AMA APPEARS TO BE TRYING TO GENERATE PUBLIC PRESSURE TO LET PEOPLE KEEP THEIR CURRENT MEDICAL ARRANGEMENTS IF THEY WANT SUCH PEOPLE COULD THEN OPT OUT OF PART OR ALL OF A NEW SYSTEM OF HEALTH ALLIANCES AND MANAGEDCARE WHICH WOULD GREATLY REDUCE THE IMPACT OF THE PENDING REFORMS SO FAR LOBBYISTS FOR DOCTORS AND INSURERS HAVEN'T MADE MUCH HEADWAY IN WASHINGTON CIRCLES THUS THE AMA AND ITS INSURANCE COUNTERPART THE HEALTH INSURANCE ASSOCIATION OF AMERICA HOPE TO DO BETTER BY PLEADING THEIR CASE TO PATIENTS AND POLICYHOLDERS YOU CAN BET WE'RE GOING TO WORK AS HARD AS WE CAN TO MAKE SURE THAT THE GENERAL PUBLIC UNDERSTANDS THESE ISSUES SAYS LONNIE BRISTOW THE AMA'S CHAIRMAN IF THE PRESIDENT'S PLAN DOESN'T INCLUDE CHOICE WE HOPE CONGRESS WILL SEE THE WISDOM OF INCLUDING IT FREEDOM TO CHOOSE ONE'S INSURER DOESN'T RANK NEARLY AS HIGH ON THE PUBLIC'S LIST OF PRIORITIES POLLSTERS SAY NONETHELESS INSURERS ARE TRYING TO CRAFT THEIR OWN PROCHOICE ARGUMENT PARTICULARLY OUTSPOKEN ON THE ISSUE IS MUTUAL OF OMAHA INSURANCE CO A LEADING UNDERWRITER OF INDIVIDUAL HEALTHINSURANCE POLICIES AT THE 270MEMBER HEALTH INSURANCE ASSOCIATION OF AMERICA PRESIDENT WILLIAM GRADISON SAYS HE IS CONSIDERING MASS MAILINGS ON BEHALF OF INSURER CHOICE EVEN BEFORE THE CLINTON HEALTH PLAN IS ANNOUNCED MR GRADISON SAYS HE IS CONCERNED THAT GROUPING PEOPLE INTO LARGE HEALTHINSURANCE BUYING COOPERATIVES WOULD TAKE AWAY INDIVIDUALS' CHOICES AND WOULD AMOUNT TO LEGISLATIVE DEATH SENTENCES FOR MANY INSURERS TO HARVARD'S PROF BLENDON THERE ARE SOME INTRIGUING PARALLELS BETWEEN THE AMA'S CURRENT LOBBYING AND ITS SUCCESSFUL FIGHT AGAINST NATIONAL HEALTH INSURANCE IN THE LATE 1940S AT THAT TIME THE AMA DEVELOPED SUCH SLOGANS AS YOUR OWN DOCTOR OR DOCTOR X AND WHEN YOU'RE SICK DO YOU WANT DOCTORS OR CLERKS BUT THE AMA'S DR BRISTOW SAYS THINGS HAVE CHANGED SINCE THEN RATHER THAN FIGHTING REFORM HE SAYS THE AMA JUST WANTS THE NEW HEALTH SYSTEM TO REFLECT SOME OF ITS CONCERNS EVEN IF THE PRESIDENT COMES OUT WITH PROPOSED LEGISLATION IN SEPTEMBER IT WILL UNDERGO SOME REFINEMENT AS IT WORKS ITS WAY THROUGH CONGRESS DR BRISTOW SAYS WE WILL WANT TO BE A PART OF ADDING TEXTURE AND COLOR TO HEALTHSYSTEM REFORM 9307260156 930726 UNCLE SAM FACES ANOTHER LAWSUIT FILED BY ALASKA SEEKING 29 BILLION GOV HICKEL SAYS US POLICY PREVENTS DEVELOPMENT OF RICH LAND BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL FAIRBANKS ALASKA GOV WALTER J HICKEL THINKS UNCLE SAM OWES ALASKA SOME MONEY MORE THAN 29 BILLION IN FACT ON FRIDAY ALASKA SUED THE FEDERAL GOVERNMENT FOR DAMAGES ALLEGING THAT FEDERALRESOURCE POLICIES HAVE ILLEGALLY LOCKED UP HUNDREDS OF MILLIONS OF ACRES OF LANDS THAT OTHERWISE COULD BE PROFITABLY WORKED FOR MINERALS TIMBER AND OTHER VALUABLE RAW MATERIALS THE ADMINISTRATION OF MR HICKEL A COLORFUL PRODEVELOPMENT MAVERICK WHO WAS ELECTED IN 1990 HAS NOW FILED FOUR LAWSUITS ATTACKING THE FEDERAL GOVERNMENT'S ROLE IN MANAGING ALASKA'S BOUNTIFUL NATURAL RESOURCES THE JUSTICE DEPARTMENT WHICH CALLED THOSE PENDING SUITS MERITLESS COULDN'T BE REACHED TO COMMENT ON THE LATEST ACTION FILED IN THE US COURT OF FEDERAL CLAIMS IN WASHINGTON THE NEW LAWSUIT IS BY FAR THE MOST AMBITIOUS IT ASSERTS THAT BY LOCKING UP LAND IN PRESERVES THAT BAN OR RESTRICT DEVELOPMENT THE FEDERAL GOVERNMENT HAS VIOLATED THE ALASKA STATEHOOD COMPACT UNDER WHICH ALASKA JOINED THE UNION IN 1959 AS WELL AS OTHER OTHER STATUTES THE FEDERAL GOVERNMENT OWNS ABOUT 212 MILLION OF ALASKA'S 365 MILLION ACRES ALTHOUGH NOT ALL FEDERAL LANDS ARE OFFLIMITS TO DEVELOPMENT NONETHELESS THE SUIT ALLEGES THAT FEDERAL RESTRICTIONS HAVE COST ALASKA AT LEAST 29 BILLION OVER THE YEARS THAT'S NOT AN ARBITRARY FIGURE GOV HICKEL SAID THAT'S OUR STARTING POINT BUT WE BELIEVE THE LOSS HAS BEEN FAR MORE THAN THAT GOV HICKEL'S JOUSTING WITH THE FEDERAL GOVERNMENT IS VIEWED BY MANY ENVIRONMENTAL ATTORNEYS AND OTHERS IN ALASKA AS QUIXOTIC SIMILAR TO SOME OTHER PROJECTS MR HICKEL HAS PROMOTED SINCE COMING INTO OFFICE SUCH AS BUILDING A WATER PIPELINE FROM ALASKA TO CALIFORNIA AND MANY ENVIRONMENTALISTS THROUGHOUT THE US ARE UNEASY ABOUT THE PROSPECT THAT ALASKA MIGHT PREVAIL IN SOME OF THE SUITS THEY FEAR THAT A STATE VICTORY COULD OPEN UP ALASKA'S WILDERNESS TO ECOLOGICALLY DAMAGING DEVELOPMENT PROMPTING CHALLENGES TO FEDERAL RESOURCE AGENCIES IN OTHER STATES THE SUITS SEEM PRETTY WEIRD BUT THERE'S A NAGGING CONCERN THAT IF THE GOVERNOR WERE TO WIN THE WILD LANDS OF ALASKA WOULD BE IN GREAT JEOPARDY SAID CLIFF EAMES ISSUES DIRECTOR FOR THE ALASKA CENTER FOR THE ENVIRONMENT 9307260155 930726 OTC FOCUS RISING MERGERS LURE INVESTORS TO ARENA WHERE LUCK IS NEEDED MORE THAN SKILL BY STEPHEN E FRANK STAFF REPORTER OF THE WALL STREET JOURNAL MERGER ACTIVITY IS BUBBLING IN THE SMALL STOCK ARENA PROVIDING SOME SHAREHOLDERS WITH SIZABLE REWARDS BUT EXPERTS WARN THAT INVESTORS LOOKING TO CAPITALIZE ON MERGERS IN THE OVERTHECOUNTER MARKET WILL NEED MORE LUCK THAN SKILL THE NUMBER OF MERGERS AMONG PUBLICLY TRADED COMPANIES WORTH 500 MILLION OR LESS WAS UP 10 DURING THE FIRST HALF OF 1993 APPROACHING A TOTAL VALUE OF 16 BILLION ACCORDING TO SECURITIES DATA CO AMONG COMPANIES WORTH 250 MILLION OR LESS MERGER TRANSACTIONS JUMPED 14 WITH A TOTAL VALUE OF MORE THAN 13 BILLION FOR INVESTORS WHO HAPPEN TO OWN STAKES IN COMPANIES THAT ARE BOUGHT OUT OFTEN AT HEFTY PREMIUMS THE RISING TIDE OF CORPORATE CONSOLIDATIONS CAN MEAN BIG BUCKS OVERNIGHT FOR EXAMPLE SHAREHOLDERS IN CRAGIN FINANCIAL CORP A BANKING COMPANY IN CHICAGO RECENTLY RECEIVED AN OFFER FROM ABN AMRO HOLDING NV A DUTCH BANKING AND FINANCIAL SERVICES CONCERN TO ACQUIRE CRAGIN FOR 38 A SHARE A 51 MARKUP FROM THE 25125 A SHARE IT CLOSED AT THE DAY BEFORE THE OFFER SHAREHOLDERS OF ACQUIRING COMPANIES REAP REWARDS FROM MERGERS TOO IN THE FRENZIED SEARCH FOR FASTGROWING SMALL COMPANIES INVESTORS PAY A PREMIUM FOR STEADY HEADY GROWTH RATES SOMETIMES SMALL COMPANIES FIND THAT THE BEST WAY TO KEEP THEIR SALES AND PROFITS GROWING RAPIDLY IS TO ACQUIRE OTHER SMALL CONCERNS BUT ANALYSTS WARN THAT TRYING TO PICK A SMALL STOCK IN THE HOPES IT WILL BE ACQUIRED AT A SUBSTANTIAL PREMIUM IS LITTLE MORE THAN A GAME OF CHANCE DESPITE THE GROWING NUMBER OF MERGERS ONLY A SMALL FRACTION OF THE MORE THAN 5000 PUBLICLY TRADED COMPANIES WITH MARKET VALUES UNDER 500 MILLION EVER GET CAUGHT UP IN MERGER ACTION I WOULDN'T USE A POTENTIAL MERGER AS MY PRIMARY WAY OF PICKING A STOCK WARNS HENRY OTTO MANAGING DIRECTOR AT BRANDYWINE ASSET MANAGEMENT IN WILMINGTON DEL IF THE MERGER IS THE ONLY THING AND IT DOESN'T COME THROUGH THEN THERE'S NOTHING HOLDING UP THAT STOCK STILL THERE ARE SOME INDUSTRIES THAT ARE RIPE FOR CONSOLIDATION AND INVESTORS STAND A BETTER CHANCE OF PICKING A MERGER TARGET IN THOSE INDUSTRIES THAN IN OTHERS MOST OFTEN CITED ARE THE HEALTHCARE TELECOMMUNICATIONS AND BANKING INDUSTRIES DAVID KLASKIN PRESIDENT OF OAK RIDGE INVESTMENTS IN CHICAGO SUGGESTS THAT A HEALTH MAINTENANCE ORGANIZATION LIKE MIDATLANTIC MEDICAL SERVICES IN WASHINGTON DC OR A BANK LIKE ST PAUL BANCORP IN MINNESOTA WOULD BE GOOD BETS FOR MERGERS SINCE BOTH HAVE AN ESTABLISHED PRESENCE IN THEIR MARKETS ROGER MCNAMEE A PRINCIPAL IN INTEGRAL CAPITAL PARTNERS IN PALO ALTO CALIF IS BULLISH ON STOCKS IN THE CELLULAR COMMUNICATIONS AND PERSONAL COMPUTER SECTORS WALL STREET RIGHT NOW IS PLACING VERY LOW VALUES ON THE PERSONAL COMPUTER INDUSTRY IN MY OPINION MUCH LOWER THAN IT'S WORTH HE SAYS ADDING THAT CONSOLIDATION IS A LIKELY RESULT CORPORATE LEADERSHIP CAN BE A FACTOR IN IDENTIFYING POTENTIAL MERGER TARGETS TOO SAYS MR MCNAMEE HE LOOKS FOR FAMILYOWNED COMPANIES WITH AGING LEADERS WHO HAVEN'T GROOMED ANY SUCCESSORS BE ON THE LOOKOUT TOO FOR FOUNDERS OR DOMINANT OWNERS LOOKING TO SELL OUT OVERTHECOUNTER STOCKS ADVANCED DESPITE FALLING BONDS PRICES THE NASDAQ COMPOSITE INDEX JUMPED 472 POINTS OR 068 TO 70024 ADVANCERS OUTNUMBERED DECLINERS 1464 TO 1273 NASDAQ VOLUME SLOWED TO 237579000 SHARES FROM 256823000 SHARES THURSDAY A DECLINE IN BOND PRICES FAILED TO DISCOURAGE OVERTHECOUNTER INVESTORS THE TREASURY'S BENCHMARK 30YEAR BOND FELL 5/8 OF A POINT WITH THE YIELD RISING TO 67 TECHNOLOGY STOCKS WERE AMONG THE TOP PERFORMERS INTEL ROSE 1 3/4 TO 51 3/4 SYNOPSYS JUMPED 3 TO 48 SYMANTEC ADVANCED 2 3/8 TO 13 5/8 CISCO SYSTEMS SHOT 2 1/8 HIGHER TO 52 7/8 AND BMC SOFTWARE CLIMBED 1 1/4 TO 57 1/4 MANY STOCKS WERE DRIVEN BY EARNINGSRELATED NEWS AMGEN GAINED 1 5/8 TO 36 1/8 ON THURSDAY THE BIOTECHNOLOGY COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE AGREED WITH ANALYSTS' EARNINGS ESTIMATES THAT THE COMPANY WILL EARN BETWEEN 235 AND 242 A SHARE THIS YEAR AMGEN EARNED 211 LAST YEAR IMMUNEX ANOTHER BIOTECH FIRM FELL 2 5/8 TO 21 THE COMPANY REPORTED A LOSS OF 355 A SHARE FOR THE TWO MONTHS ENDED JUNE 1 THE DATE ON WHICH IT MERGED WITH LEDERLE ONCOLOGY CHILDREN'S DISCOVERY CENTERS GAINED 1 TO 7 3/4 AFTER ANNOUNCING THAT THE PROVIDER OF CHILDCARE AND PRESCHOOL PROGRAMS EARNED 13 CENTS A SHARE IN THE SECOND QUARTER COMPARED WITH A LOSS OF SIX CENTS A YEAR EARLIER CHEMTRAK SHED 1 1/4 TO 6 1/2 AFTER REPORTING A SECONDQUARTER LOSS OF 23 CENTS A SHARE COMPARED WITH A LOSS OF 34 CENTS A YEAR EARLIER ON A CHARGE THE COMPANY MAKES DISPOSABLE DIAGNOSTIC TESTS CORPORATE SOFTWARE FELL 2 TO 8 3/4 THE COMPANY REPORTED THURSDAY THAT SECONDQUARTER EARNINGS FELL TO ONE CENT A SHARE ON A CHARGE FROM 18 CENTS A YEAR EARLIER PIPER JAFFRAY DOWNGRADED THE STOCK TO ACCUMULATE FROM BUY ON FRIDAY BECAUSE OF THE COMPANY'S DISAPPOINTING BUSINESS IN EUROPE VMARK JUMPED 1 1/2 TO 13 3/4 THE COMPANY SAID STRONG SOFTWARE SALES WILL RESULT IN SECONDQUARTER EARNINGS OF 16 CENTS A SHARE COMPARED WITH 11 CENTS A YEAR EARLIER MERIS LABORATORIES DROPPED 1 1/8 TO 9 1/8 THE COMPANY SAID FORMER COMPANY PRESIDENT CHRIS RIEDEL AND CERTAIN OTHER INDIVIDUALS WERE SUBPOENAED BY THE SECURITIES AND EXCHANGE COMMISSION NEW ISSUE PETSMART TOPPED THE MOSTACTIVES LIST CLOSING AT 25 ABOVE ITS INITIAL PRICE THURSDAY OF 18 A SHARE THE COMPANY OPERATES STORES SPECIALIZING IN PET FOOD SUPPLIES AND SERVICES WONDERWARE ALSO A NEW ISSUE SOARED TO 17 ABOVE ITS DEBUT PRICE THURSDAY OF 14 A SHARE THE SOFTWARE SUPPLIER EXPECTS TO USE PROCEEDS FOR WORKING CAPITAL PRODUCT DEVELOPMENT SALES MARKETING CUSTOMER SUPPORT AND FACILITIES EXPANSION 9307260154 930726 THE OUTLOOK LIKELIEST FORECAST MORE WEAK GROWTH BY ALFRED L MALABRE JR NEW YORK THREE YEARS AGO THIS MONTH THE ECONOMY ENTERED ITS NINTH RECESSION SINCE THE END OF WORLD WAR II THE SLUMP PROVED TO BE RELATIVELY BRIEF AND MILD IT LASTED ONLY NINE MONTHS AND JOBLESSNESS HELD BELOW 7 OF THE LABOR FORCE BY COMPARISON THE RECESSION OF 198182 PERSISTED FOR 16 MONTHS AND THE UNEMPLOYMENT RATE REACHED 11 SINCE THE LATEST RECESSION ENDED IN MARCH 1991 OVERALL ECONOMIC ACTIVITY HAS BEEN ON THE RISE BUT THE GROWTH HAS BEEN SO LABORED THAT OFTEN THE 199091 RECESSION SEEMS STILL TO BE IN PROGRESS THE BROADEST GAUGE OF THE ECONOMY THE GROSS DOMESTIC PRODUCT ADJUSTED FOR INFLATION HAS RISEN LITTLE MORE THAN 4 SINCE THE RECOVERY BEGAN JOBLESSNESS WAS LOWER IN THE RECESSION THAN NOW AND INDUSTRIAL OUTPUT FELL LAST MONTH DOES THIS LACKLUSTER SHOWING SIGNIFY THE APPROACH OF YET ANOTHER RECESSION OR DOES THE EXPANSION'S SLUGGISHNESS LEND IT A DEGREE OF DURABILITY THAT WOULD BE LACKING IF THE ECONOMY WERE ADVANCING MORE SWIFTLY THE LIKELIEST ANSWER SEEMS TO BE THAT A NEW RECESSION IS UNLIKELY AND THAT THE EXPANSION'S SLOW PACE DOES INDEED SUGGEST AN INCREASED STAYING POWER HUGE IMPONDERABLES MAKE ANY FORECAST HAZARDOUS HOW HEAVILY WILL THE TAX INCREASES BEING MAPPED IN WASHINGTON WEIGH ON ECONOMIC ACTIVITY IN COMING MONTHS HOW EASILY WILL THE ECONOMY ADJUST TO THE CUTBACKS IN DEFENSE THAT SEEM BOUND TO PERSIST AS THE POSTCOLD WAR ERA MOVES ALONG HOW SOON AND HOW BRISKLY WILL GROWTH REVIVE IN STRUGGLING ECONOMIES ABROAD THAT PROVIDE MAJOR MARKETS FOR US GOODS AND SERVICES A RECENT SURVEY OF 57 FORECASTERS BY BLUE CHIP ECONOMIC INDICATORS A NEWSLETTER BASED IN SEDONA ARIZ FINDS THAT THE MOST WORRISOME FACET OF THE OUTLOOK FOR THE NEXT 18 MONTHS OR SO IS THE LIKELIHOOD OF HIGHER TAXES AT FEDERAL STATE AND LOCAL LEVELS AND FISCAL DRAG DUE TO CUTBACKS IN DEFENSE NONETHELESS THE BLUE CHIP GROUP ESTIMATES THAT THE ECONOMY WILL CONTINUE TO EXPAND SLOWLY THROUGH THE REST OF THIS YEAR AND IN 1994 AS WELL FOR EXAMPLE THE ANALYSTS FORECAST ON AVERAGE THAT INFLATIONADJUSTED GDP WILL RISE AT ANNUAL RATES OF 29 IN THE CURRENT QUARTER AND 32 IN THE FOURTH QUARTER TO BE FOLLOWED BY QUARTERLY GAINS RANGING NEAR 3 THROUGHOUT 1994 GENERALLY THE ECONOMISTS ALSO EXPECT THAT INFLATION WILL REMAIN MODERATE THOUGH THEY LOOK FOR A SLIGHT ACCELERATION DUE LARGELY TO THE EFFECT ON FARM PRICES OF CURRENT FLOODING IN THE MIDWEST AT THE SAME TIME THEY FORESEE LITTLE CHANGE IN THE LEVEL OF LONGTERM INTEREST RATES THOUGH SHORTTERM RATES NOW IN THE NEIGHBORHOOD OF 3 ARE EXPECTED TO RISE GRADUALLY REACHING 38 LATE NEXT YEAR IN ADDITION A SLOW DECLINE IN UNEMPLOYMENT IS ANTICIPATED WITH THE JOBLESS RATE AT 7 LAST MONTH EDGING DOWN TO 65 A YEAR FROM NOW SUCH DEVELOPMENTS HARDLY SUGGEST A ROBUST ECONOMY BUT NEITHER DO THEY POINT TO THE ONSET OF A NEW RECESSION IN FACT NOT A SINGLE FORECASTER POLLED BY BLUE CHIP ANTICIPATES A DECLINE IN THE GDP MEASURE THIS YEAR OR NEXT FACTORS THAT THE ANALYSTS BELIEVE WILL HELP KEEP THE ECONOMY EXPANDING INCLUDE CONTINUING MODEST INFLATION RELATIVELY LOW INTEREST RATES RISING INVESTMENT IN NEW PLANT AND EQUIPMENT AND IMPROVING PRODUCTIVITY IT MAY SEEM WORRISOME TO BE SURE THAT THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER A LONG CLIMB HAS RECENTLY BEEN WOBBLING THIS WIDELY FOLLOWED PRECURSOR OF ECONOMIC TRENDS REACHED A PEAK IN FEBRUARY FELL IN MARCH ROSE IN APRIL AND THEN FELL AGAIN IN MAY THE LATEST MONTH AVAILABLE BUT THIS WOBBLING DOES NOT MEAN THAT A RECESSION IS IMMINENT THE COMMERCE INDEX OFTEN BEHAVES IN ERRATIC FASHION AFTER THE ECONOMY HAS BEEN EXPANDING FOR A CONSIDERABLE TIME IN CONTRAST WHEN A RECESSION IS NEAR THE INDEX NORMALLY ENTERS A SUSTAINED UNMISTAKABLE DECLINE AND THE ECONOMY BEGINS TO SLUMP WITHIN ROUGHLY SIX MONTHS IT IS ENCOURAGING MEANWHILE TO OBSERVE THE RECENT BEHAVIOR OF ANOTHER EARLYWARNING BAROMETER COMPILED AT COLUMBIA UNIVERSITY'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH THIS PRECURSOR ON AVERAGE HAS WARNED OF A RECESSION'S ARRIVAL BY 14 MONTHS AN APPRECIABLY LONGER LEADTIME THAN THE COMMERCE INDEX NORMALLY PROVIDES CALLED THE LONGLEADING INDEX THE COLUMBIA GAUGE HAS CONTINUED TO CLIMB WITH LITTLE INTERRUPTION SINCE THE MIDDLE OF THE 199091 RECESSION IT ROSE TO YET ANOTHER RECORD IN MAY SUGGESTING THAT A NEW RECESSION IS UNLIKELY FOR AT LEAST 14 MONTHS RECESSIONS IT SHOULD BE STRESSED NORMALLY DEVELOP NOT ON ACCOUNT OF LACKLUSTER ECONOMIC GROWTH BUT BECAUSE AN EXPANDING ECONOMY RUNS UP AGAINST INSUPERABLE CONSTRAINTS TO FURTHER GROWTH THESE CONSTRAINTS WHICH TYPICALLY EASE AS A RECESSION DEEPENS TAKE MANY FORMS THEY MAY BE PHYSICAL SUCH AS SHORTAGES OF LABOR AND PLANT CAPACITY OR THEY MAY BE FINANCIAL SUCH AS SHORTAGES OF MONEY AND CREDIT AT PRESENT PRECISELY BECAUSE THE EXPANSION HAS BEEN SO SLUGGISH THERE SEEMS LITTLE LIKELIHOOD THAT ANY SUCH SHORTAGE WILL DEVELOP TO PRECIPITATE A NEW RECESSION ANY TIME SOON A LARGER DANGER MAY BE THE BURDEN THAT HIGHER TAXES IF THEY ARE ENACTED MAY PLACE ON INDIVIDUALS AND BUSINESSES THIS COULD SERVE EVENTUALLY TO CONSTRAIN GROWTH AND ALONG WITH FURTHER CUTBACKS IN DEFENSE TRIGGER A RECESSION THE LIKELIER PROSPECT HOWEVER IS FOR THE ECONOMY TO CONTINUE TO EXPAND SO LONG AS THE PACE REMAINS SUBDUED 9307260153 930726 VEHICLE SALES ROSE 162 IN MIDJULY WITHOUT GM DATA BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT MIDJULY SALES OF CARS AND LIGHT TRUCKS BUILT DOMESTICALLY BY MOST AUTO MAKERS WERE UP 162 COMPARED WITH SALES BY THE SAME AUTO MAKERS IN THE YEARAGO PERIOD GENERAL MOTORS CORP DIDN'T REPORT ITS VEHICLE SALES FOR THE JULY 1020 PERIOD ALONG WITH THE OTHER MANUFACTURERS BECAUSE IT WAS CLOSED FOR A ROUTINE SUMMER SHUTDOWN THE RESULTS FROM GM WHICH ACCOUNTS FOR MORE THAN A THIRD OF THE US MARKET ARE LIKELY TO DILUTE THE PERIOD'S STRONG GROWTH GM HAS REPORTED SALES GROWTH RATES OF 5 TO 9 IN RECENT PERIODS GM'S MIDJULY SALES ARE DUE OUT JULY 2 NONETHELESS SALES REPORTS FROM THE REST OF THE INDUSTRY ARE IN LINE WITH REPORTS OF RECENT MONTHS AND SEEM TO SHOW THAT AUTO SALES CONTINUE TO LEAD THE ECONOMIC RECOVERY AND THAT DOMESTIC AUTO MAKERS CONTINUE TO OUTPACE MOST OF THEIR JAPANESE RIVALS FOR MIDJULY FORD MOTOR CO REPORTED SALES OF 90188 VEHICLES UP 141 FROM LAST YEAR'S PERIOD THE GROWTH RATE WAS STRONGER THAN ITS RATE IN LATE JUNE AND EARLY JULY BUT WELL BELOW MAY'S LEVEL WHEN SALES INCREASES AT FORD HIT 25 THE BULK OF FORD'S INCREASES CAME IN HEALTHY GAINS IN ALMOST ALL ITS LIGHTTRUCK LINES WHICH AS A GROUP WERE UP 211 CHRYSLER CORP DOESN'T REPORT SALES UNTIL THE END OF THE MONTH BUT WARD'S AUTOMOTIVE REPORTS AN INDUSTRY NEWSLETTER ESTIMATES THAT THE NO 3 AUTO MAKER SOLD 55300 VEHICLES UP 234 FROM LAST YEAR WITH GROWTH IN CAR SALES LEADING THE UPTURN TOTAL SALES AT HONDA MOTOR CO AND TOYOTA MOTOR CORP BOTH INCREASED A MODEST 2 FOR THE PERIOD NISSAN MOTOR CO CONTINUED TO LEAD ITS JAPANESE RIVALS IN SALES GROWTH OF DOMESTICALLY PRODUCED VEHICLES IT POSTED A 94 INCREASE LARGELY BECAUSE OF THE SUCCESS OF ITS NEW ALTIMA SEDAN NISSAN DOESN'T REPORT ITS IMPORT SALES UNTIL THE END OF THE MONTH 9307260152 930726 HINDALCO OFFERING RAISES 108 MILLION IN INDIA'S RETURN TO CAPITAL MARKETS BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI HINDALCO INDUSTRIES LTD HAS TAPPED INVESTORS IN THE US EUROPE AND ASIA TO RAISE 108 MILLION IN AN ISSUE OF GLOBAL DEPOSITARY RECEIPTS MARKING THE FIRST INDIAN OFFERING ON INTERNATIONAL CAPITAL MARKETS IN A YEAR OFFICIALS WITH THE ALUMINUM COMPANY SAID THE ISSUE COMPLETED LAST WEEK WAS OVERSUBSCRIBED BY A MULTIPLE OF THREE THAT SUCCESS IS LIKELY TO LEAD TO OFFERINGS FROM SEVERAL OTHER INDIAN COMPANIES THAT PUT OFF PLANS TO TAP INTERNATIONAL MARKETS AFTER THE INDIAN STOCK MARKET WAS BATTERED LAST YEAR BY A MULTIMILLIONDOLLAR FRAUD SCANDAL AND THEN THE OUTBREAK OF COMMUNAL VIOLENCE AND POLITICAL CRISES INDIAN SHARE PRICES HAVE ROUGHLY HALVED SINCE APRIL 1992 HOWEVER FOREIGN INVESTORS APPARENTLY THINK THE WORST IS OVER A SEA CHANGE HAS HAPPENED IN THE LAST SIX MONTHS IN PERCEPTIONS ABOUT THE INDIAN MARKET SAID RODDY SALE OF ROBERT FLEMING & CO WHICH WAS A LEAD MANAGER FOR THE ISSUE THE STRONG DEMAND THAT HINDALCO ATTRACTED PARTICULARLY FROM THE US AND THE PACIFIC REGION REFLECTS A FEELING THAT THE INDIAN MARKET WILL FORM AN IMPORTANT PART OF ANY ASIAN PORTFOLIO HE SAID IN A TELEPHONE INTERVIEW FROM LONDON THE HINDALCO ISSUE COMPRISED 4473000 UNITS EACH CONSISTING OF ONE GDR REPRESENTING ONE SHARE AND HALF A WARRANT EACH WARRANT IS CONVERTIBLE INTO A HINDALCO GDR AFTER 90 DAYS THE GDRS WERE PRICED AT 1610 EACH RAISING 72 MILLION INITIALLY PLUS 36 MILLION WHEN THE WARRANTS ARE FULLY EXERCISED THE ISSUE PRICE IS EQUIVALENT TO 505 RUPEES A DISCOUNT TO THE 565 RUPEES AT WHICH HINDALCO STOCK LAST TRADED IN BOMBAY THE GDRS AND WARRANTS WILL BE LISTED ON THE LUXEMBOURG STOCK EXCHANGE IN A COUPLE OF WEEKS AND THE GDRS WILL BE REDEEMABLE FOR UNDERLYING HINDALCO SHARES 30 DAYS AFTER THAT ON FRIDAY THE GDRS AND WARRANTS WERE TRADING IN THE UNOFFICIAL GRAY MARKET AT SLIGHT PREMIUMS TO THEIR OFFERING PRICES MR SALE SAID HINDALCO'S FUNDAMENTALS ARE VERY STRONG AND WE GOT A VERY GOOD RESPONSE FROM INTERNATIONAL INVESTORS SAID AK AGARWALA THE COMPANY'S PRESIDENT MR AGARWALA ALSO WAS A MEMBER OF A TEAM HEADED BY HINDALCO CHAIRMAN ADITYA BIRLA THAT MARKETED THE ISSUE THIS MONTH ON A GLOBAL ROAD SHOW HINDALCO WHICH REPORTED PROFIT OF 107 BILLION RUPEES 343 MILLION ON SALES OF 975 BILLION RUPEES FOR THE YEAR ENDED MARCH 31 IS IN THE MIDST OF AN 11 BILLION RUPEE EXPANSION SCHEDULED TO BE COMPLETED IN 1996 THE PROGRAM WILL BE FINANCED BY THE GDR ISSUE AND LOANS AND FROM THE COMPANY'S INTERNAL RESOURCES THE MONEY WILL BE USED TO UPGRADE EXISTING FACILITIES INCREASE ALUMINUM OUTPUT TO 210000 METRIC TONS A YEAR FROM LAST YEAR'S LEVEL OF 163485 TONS INCREASE ALUMINA OUPUT TO 425000 TONS FROM 350000 TONS AND ADD NEARLY 100 MEGAWATTS TO THE COMPANY'S POWERGENERATING CAPACITY A METRIC TON EQUALS 220462 POUNDS THE HINDALCO ISSUE BREAKS A LONG LULL IN INDIAN USE OF INTERNATIONAL EQUITY MARKETS LAST YEAR RELIANCE INDUSTRIES LTD RAISED 150 MILLION AND GRASIM INDUSTRIES LTD RAISED 90 MILLION IN SEPARATE GDR ISSUES THEY WERE THE FIRST INDIAN COMPANIES TO TAP OVERSEAS INVESTORS THESE ISSUES HOWEVER GOT CAUGHT IN THE STOCKMARKET CRASH THAT FOLLOWED REVELATIONS OF A 128 BILLION SECURITIES FRAUD LAST YEAR THE MARKET TOOK A FURTHER PUMMELING AS A RESULT OF WIDESPREAD VIOLENCE AND POLITICAL UNCERTAINTY THAT FOLLOWED THE DESTRUCTION OF A MOSQUE BY HINDU ZEALOTS IN AYODHYA IN DECEMBER IN RECENT MONTHS THE RELIANCE AND GRASIM GDRS BOTH LISTED IN LUXEMBOURG HAVE BEEN TRADING BELOW THEIR ISSUE PRICES MR SALE SAID HINDALCO'S SHARES INCLUDING THE GDRS SHOULD BE ABLE TO HOLD THEIR OWN THE SECURITIES WERE PRICED AT 15 TIMES THE COMPANY'S EXPECTED PERSHARE EARNINGS FOR YEAR ENDING MARCH 31 1994A LEVEL THAT HAS MET WITH INTERNATIONAL DEMAND QUITE SATISFACTORILY AT THURSDAY'S CLOSE HINDALCO SHARES WERE TRADING AT 342 TIMES LAST YEAR'S EARNINGS AMONG OTHER SIGNS THAT INDIAN COMPANIES ARE RETURNING TO THE GLOBAL MARKET ESSAR GUJARAT LTD AN ENGINEERING STEEL AND SPONGE IRON COMPANY HAS JUST FULLY SOLD 60 MILLION OF CONVERTIBLE DEBENTURES MARKET SOURCES SAY THIS WILL BE FOLLOWED BY INTERNATIONAL ISSUES FROM TOBACCO COMPANY ITC LTD FERTILIZER MAKER SOUTHERN PETROCHEMICAL INDUSTRIES CORP AND TATA GROUP'S TATA IRON & STEEL CO AMONG OTHERS 9307260151 930726 RACE FOR AMTRAK CONTRACT ACCELERATES AS GERMAN AND SWISS TRAINS COMPETE BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL A HIGHTECH IRON HORSE RACE FOR A 450 MILLION AMTRAK CONTRACT HEATED UP OVER THE WEEKEND AS A SUPERFAST GERMAN TRAIN RACED PAST PRINCETON NJ AT SPEEDS ABOVE 160 MILES PER HOUR WITH ITS HIGH HORSEPOWER RAPID ACCELERATION AND FAST CRUISING SPEED THE GERMAN RAILWAYS INTERCITYEXPRESS SURPASSED THE 155 MILES AN HOUR REACHED BY A SLEEK SWEDISHMADE TRAIN ON THE SAME TRACK LAST JANUARY BUT BACKERS OF THE SWEDISH STATE RAILWAYS X2000 SAY THEIR TILTING TRAIN TECHNOLOGY NEUTRALIZES THE SPEED ADVANTAGE OF THE ICE TRAIN WHICH MUST SLOW DOWN FOR CURVES THE RIVAL TRAINS POSED SIDE BY SIDE FOR A PHOTO SESSION FRIDAY AT WASHINGTON'S UNION STATION AMTRAK IS TESTDRIVING THE EQUIPMENT IN HOPES OF WRITING SPECIFICATIONS FOR 26 TRAINS TO REPLACE THE RAILROAD'S METROLINER FLEET ON THE NORTHEAST CORRIDOR THE CONTENDERS ARE ALSO VYING FOR A POTENTIAL HALFBILLION DOLLARS OR MORE IN ADDITIONAL ORDERS FROM STATES LOOKING FOR SUBSTANTIALLY FASTER TRAIN SERVICE BETWEEN THEIR MAJOR CITIES SINCE ITS ARRIVAL ON US SOIL LAST OCTOBER THE X2000 HAS CONDUCTED SPEED TESTS AS WELL AS REGULAR PASSENGER RUNS ON THE NORTHEAST CORRIDOR AND AN 85CITY 20000MILE NATIONAL TOUR THE X2000 IS ABLE TO TAKE CURVES 30 TO 40 FASTER THAN CONVENTIONAL TRAINS BECAUSE IT HAS AXLES THAT PIVOT INDEPENDENTLY SENSORS DETECT CURVY TRACK AND ACTIVATE HYDRAULIC GEAR TO PUSH PASSENGERCAR BODIES OUT TO COUNTER CENTRIFUGAL FORCES AND IMPROVE PASSENGER COMFORT THE AERODYNAMIC SIXCAR ICE TRAIN ARRIVED IN THE US LATE LAST MONTH WITH AN ELECTRIC LOCOMOTIVE AT EACH END THE ICE TRAIN IS ABOUT TWICE AS POWERFUL AS THE 4500HORSEPOWER X2000 THE ICE TRAIN REACHES A TOP SPEED OF 175 MPH IN GERMANY AND HAS BEEN CLOCKED AT MORE THAN 250 MPH ON AN ULTRAHIGHSPEED TEST RUN ITS INTERIOR INCLUDES VIDEO SCREENS IN SOME SEAT BACKS MARBLE TABLE TOPS IN THE RESTAURANT CAR AND TELEPHONES AND A FACSIMILE MACHINE IN ONE OF THE COACHES WITH OUR OVERALL ATTRACTIVE DESIGN AMENITIES SPEED AND RIDE COMFORT WE WOULD LEAVE THE X2000 IN THE DUST SAYS HELMUT WEINMANN A VICE PRESIDENT OF SIEMENS TRANSPORTATION SYSTEMS INC A SUBSIDIARY OF SIEMENS AG OF GERMANY THE ICE TRAIN IS A DEVELOPMENT OF SIEMENS IN PARTNERSHIP WITH OTHER GERMAN COMPANIES THE X2000'S MANUFACTURER SAYS ITS TILTING TRAIN WON'T BE UPSTAGED THE ICE TRAIN IS BEAUTIFUL INSIDE AND GOES FAST BUT IN THE US IT IS NOT THE APPROPRIATE TRAIN FOR USE ON CURVY EXISTING TRACK SAYS JOSEPH SILIEN DIRECTOR OF BUSINESS DEVELOPMENT FOR ABB TRACTION INC A UNIT OF ZURICHBASED ABB ASEA BROWN BOVERI LTD DESPITE ITS RIVAL'S HIGH HORSEPOWER AND SPEED THE X2000 WILL ARRIVE SOONER BECAUSE IT HAS THE ADVANTAGES ON CURVES HE SAYS NEITHER COMPETITOR IS SETTING A US TRAIN SPEED RECORD ACCORDING TO THE ASSOCIATION OF AMERICAN RAILROADS THE FORMER NEW YORK CENTRAL RAILROAD PUT A TURBO JET ENGINE ON THE TOP OF A PASSENGER CAR IN 1966 AND ACHIEVED A SPEED OF 1839 MPH BETWEEN BUTLER IND AND STRYKER OHIO AMTRAK OFFICIALS SAY THEIR CHOICE OF TECHNOLOGY TO REPLACE THE 125 MPHMETROLINERS WON'T BE LIMITED TO THE X2000 OR THE ICE TRAIN INSTEAD THE NATIONAL RAIL SYSTEM PLANS TO DEVELOP OUR SPECIFICATIONS BASED ON THE BEST TECHNOLOGY WE'RE AWARE OF AND REQUIRE THAT IT BE BUILT DOMESTICALLY SAYS TIM GILLESPIE AMTRAK'S ASSISTANT VICE PRESIDENT GOVERNMENT AND PUBLIC AFFAIRS AMTRAK IS TRYING TO OBTAIN FROM CONGRESS FUNDING TO PROCEED WITH THE PROCUREMENT OF THE 26 HIGHSPEED TRAINS MEANWHILE AMTRAK IS CONDUCTING MORE TESTS OF THE ICE TRAIN SUCH AS SATURDAY'S HIGHSPEED RUN PAST PRINCETON THE SCENERY BLURS AND SIGNALS COME UP VERY FAST SAYS EDWARD LOMBARDI AMTRAK'S MANAGER OF PERFORMANCE AND TESTS WHO HAS MADE NEARLY A DOZEN TEST RUNS ON THE ICE TRAIN THE RIDE IS SMOOTH AND THE NOISE LEVEL IS LOW ALTHOUGH THE ICE TRAIN ACCELERATES FASTER THAN THE X2000 MR LOMBARDI NOTED IT HAS TO SLOW DOWN FOR CURVES 9307260150 930726 RETAILING MUSICLAND PLANS MEDIA MEDLEY IN SUPERSTORES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL MUSICLAND STORES CORP ONE OF THE COUNTRY'S LARGEST RETAILERS OF MUSIC AND VIDEOS PLANS TO TAKE THE SUPERSTORE CONCEPT INTO NEW TERRITORY WITH A CHAIN OF STORES OPENING THIS YEAR THAT WILL SELL A KALEIDOSCOPE OF MEDIARELATED PRODUCTS THE NEW MEDIA PLAY STORES WILL OFFER UNDER ONE ROOF PRODUCTS THAT SHOPPERS HAVE LONG HAD TO VISIT SEVERAL DIFFERENT STORES TO BUY CDS AND AUDIO CASSETTES BOOKS VIDEOCASSETTES COMPUTER SOFTWARE AND VIDEO GAMES AS WELL AS TOYS GREETING CARDS AND APPAREL LICENSED FROM MOVIES ROCK BANDS AND SPORTS TEAMS ALL AT DISCOUNT PRICES THE COMPANY HOPES TO ATTRACT CUSTOMERS BY MAKING THE 50000SQUAREFOOT STORES BILLED AS CONSUMERINTERACTIVE FULL MEDIA INTO DESTINATIONS WHERE SHOPPERS WILL WANT TO SPEND TIME AS WELL AS MONEY MUSICLAND OWNER OF THE MUSICLAND AND SAM GOODY MUSIC CHAINS AND THE SUNCOAST MOTION PICTURE CO VIDEOSFORSALE CHAIN IS EXPECTED TO ANNOUNCE TODAY THAT ITS BOARD HAS APPROVED THE OPENING OF 10 NEW MEDIA PLAY STORES BY YEAR'S END IN EIGHT CITIES INCLUDING ATLANTA DENVER AND SALT LAKE CITY MUSICLAND SAYS IT HAS SUCCESSFULLY TESTED THE CONCEPT IN THREE TEST STORES IN ROCKFORD ILL AND COLUMBUS OHIO WE HOPE THIS WILL BE A SUCCESSFUL POWERRETAILING ROLLOUT THOUGH WE KNOW IT'S A REAL RISK SAYS JACK W EUGSTER CHAIRMAN AND CHIEF EXECUTIVE OF THE MINNEAPOLISBASED COMPANY ONE RISK IS COMPETITION FROM SIMILAR SUPERSTORES BLOCKBUSTER ENTERTAINMENT CORP AND VIRGIN RETAIL GROUP LTD PLAN VIRGIN MEGASTORES IN 12 CITIES INCLUDING SAN FRANCISCO LAS VEGAS CHICAGO AND BOSTON THE STORES SOME TO OPEN IN THE NEXT 18 MONTHS WILL CARRY MUSIC VIDEOS AND COMPUTER SOFTWARE IN SUBURBAN CHICAGO THIS FALL MTS INC'S TOWER RECORDS WILL OPEN PROTOTYPE STORES THAT WILL FEATURE MUSIC VIDEO AND BOOKS UNDER ONE ROOF MEDIA PLAY IS AN EXCITING FORMAT SAYS DAVID BOLOTSKY A GOLDMAN SACHS & CO ANALYST BUT TOWER AND BLOCKBUSTER ARE GROWING AGGRESSIVELY TOO AND THEY BOTH HAVE SIMILAR IDEAS AND DEEP POCKETS MEDIA PLAY'S DISCOUNT PRICING WILL ALSO PUT IT UP AGAINST ESTABLISHED DISCOUNT RETAILERS SUCH AS KMART CORP WALMART STORES INC AND TARGET STORES INC ALL OF WHICH ALSO SELL BOOKS VIDEOS AND MUSIC RECORDINGS AND BORDERS INC A KMART UNIT IS ADDING BORDERS BOOKS & MUSIC SUPERSTORES THROUGHOUT THE COUNTRY AND ANALYSTS NOTE THE SUPERSTORE CONCEPT ISN'T FOOLPROOF POINTING TO WALMART'S STRUGGLES WITH ARENASIZED HYPERMARTS WHICH SELL GROCERIES AND GENERAL MERCHANDISE STILL WITH THE 10 NEW MEDIA PLAY STORES TO OPEN BY YEAR'S END MUSICLAND APPEARS TO BE MOVING FASTER AND WITH A BROADER SWEEP THAN ITS MOST DIRECT COMPETITORS BESIDES 60000 MUSIC TITLES ON CD AND TAPE AND 20000 MOVIE TITLES ON VIDEO EACH MEDIA PLAY STORE WILL CARRY AS MANY AS 80000 BOOK TITLES THE STORES WILL TARGET BABY BOOMERS WITH KIDS AND THE PRODUCT SELECTION WILL BE FAMILYORIENTED THOUGH THE ROCKFORD TEST STORE LAST YEAR CARRIED THE STEAMY MADONNA PICTORIAL BOOK SEX THERE WILL BE NO XRATED PRODUCT BUT WE WILL CARRY WHAT CUSTOMERS ARE INTERESTED IN SAYS MUSICLAND'S MR EUGSTER THE COMPANY IS RELYING MOST ON THE STORES' AMBIENCE TO DRAW PARENTS AND CHILDREN THE MEDIA PLAY TEST STORES APPEAR TO MIMIC EUROPEAN RETAILERS SUCH AS VIRGIN WHICH HAS A PARIS STORE THAT IS A CIRCUSLIKE ENTERTAINMENT CENTER AS MUCH AS A SELLING SPACE TO PROMOTE MOVIES MEDIA PLAY USES COSTUMED CHARACTERS CIRCULATING AMONG SHOPPERS TO SELL MUSIC AND VIDEOS THE STORES HAVE MUSIC LISTENING POSTS AND VIDEO DISPLAY WALLS SPECIALINTEREST AREAS CUT ACROSS PRODUCT CATEGORIES THE CHILDREN'S SECTION IS STOCKED WITH KID'S VIDEOS BOOKS EVEN APPAREL BUT ALSO INCLUDES A PLAY AREA WHERE COSTUMED CHARACTERS APPEAR AND FAVORITE MOVIES ARE SHOWN THE TRAVEL SECTION IS STOCKED WITH TRAVEL VIDEOS AND BOOKS AS WELL AS MAPS GLOBES AND TRAVEL PARAPHERNALIA IN SOME STORES THE SECTION MAY INCLUDE A TRAVEL AGENCY SOME COMPETITORS HOWEVER HAVE BEEN UNIMPRESSED WITH WHAT THEY HAVE SEEN IN THE MEDIA PLAY TEST STORES IT'S NICE AND CLEAN BUT A SOMEWHAT ORDINARY ENVIRONMENT SAYS RUSSELL M SOLOMON FOUNDER OF TOWER RECORDS AND PRESIDENT OF MTS AFTER VISITING THE ROCKFORD STORE I SAY IT WITH RESPECT NOTHING TO REALLY GET YOU EXCITED BUT HE ADDS THE PRICES ARE THE THINGS THAT ARE NICE SAYS MUSICLAND'S MR EUGSTER I WILL LET THE STORE STAND ON ITS OWN WHILE MEDIA PLAY MAY NOT HAVE THAT CERTAIN EUROPEAN FLAIR IT APPEARS TO DRAW AND KEEP SHOPPERS FOR EXTENDED PERIODS SOMETHING MUSIC RETAILERS ORDINARILY HAVE GREAT DIFFICULTY DOING MUSICLAND SAYS SURVEYS FROM THE TEST STORES SHOW CUSTOMERS SPEND AN AVERAGE OF TWO HOURS IN THE STORE FOR AT LEAST THE FIRST VISIT SOME ANALYSTS SAY THEY AREN'T SURPRISED THAT MEDIA PLAY STORES DID WELL IN TEST MARKETS LIKE ROCKFORD AND COLUMBUS WHICH LACK A CONCENTRATION OF COMPETING SPECIALTY RETAILERS IN CITIES SUCH AS ATLANTA AND DENVER HOWEVER MEDIA PLAY STORES COULD RUN INTO STIFFER COMPETITION AND IT ISN'T CLEAR WHETHER MEDIA PLAY WILL SUCCEED AT DRAWING CUSTOMERS AWAY FROM CONVENTIONAL SPECIALTY STORES IN COLUMBUS A MEDIA PLAY TEST CITY BORDERS HAS A BOOKSONLY OUTLET WITH AN ESPRESSO BAR ROBERT DIROMUALDO BORDERS' CHIEF EXECUTIVE SAYS MEDIA PLAY HASN'T AFFECTED HIS STORE'S SALES WE ARE A VERY FOCUSED STORE AND WE CONCENTRATE ON HIGHQUALITY SERVICE HE SAYS BORDERS WHICH BUILT ITS REPUTATION AS A BOOKSELLER OPENED ITS FIRST BOOKS & MUSIC STORE IN DALLAS LAST SEPTEMBER IT HAS OPENED FIVE MORE SINCE AND PLANS CLOSE TO 30 OTHERS BUT THE COMPANY IS AVOIDING WHAT MR DIROMUALDO CALLS THE CACOPHONY OF THE MEDIA PLAY STORES BORDERS BOOKS & MUSIC STORES CARRY A FULL RANGE OF MUSIC TITLES BUT IN KEEPING WITH BORDERS' LITERARY ATMOSPHERE THE MUSIC DEPARTMENTS ARE HEAVILY STOCKED WITH JAZZ WORLD MUSIC CLASSICAL AND SHOWTUNE SELECTIONS AND LESSER AMOUNTS OF URBAN ROCK AND COUNTRY TITLES OUR ATMOSPHERE IS RELAXED FOR AN EDUCATED CLIENTELE SAYS MR DIROMUALDO WE DON'T WANT TO LOSE OUR LITERARY PEDIGREE HE ADDS YOU REALLY CAN'T BE ALL THINGS TO ALL PEOPLE 9307260149 930726 FINANCING BUSINESS READING & BATES CORP READING & BATES CORP HOUSTON SAID IT PLANS AN OFFERING OF 26 MILLION SHARES OF A NEW CLASS OF 1625 CONVERTIBLE PREFERRED STOCK THE OIL AND GAS DRILLING AND TECHNOLOGICAL CONSULTING COMPANY SAID PROCEEDS WILL BE USED TO PAY DEBT FOR WORKING CAPITAL AND FOR GENERAL CORPORATE PURPOSES THE OFFERING WILL BE MANAGED BY SALOMON BROTHERS INC 9307260148 930726 FINANCING BUSINESS NEWS CORP NEWS CORP NEW YORK SAID A UNIT WILL SELL 250 MILLION OF 8 5/8 GUARANTEED CUMULATIVE PREFERENCE SHARES NEWSCORP OVERSEAS LTD A FINANCING ARM OF NEWS CORP PLANS TO SELL 10 MILLION OF THE SHARES IN A SALE LED BY MERRILL LYNCH & CO PROCEEDS WILL BE USED BY THE MEDIA COMPANY FOR GENERAL CORPORATE PURPOSES 9307260147 930726 NAFTA TALKS TO RESUME ON THURSDAY SIDE ACCORDS COULD BE SET BY WEEK'S END BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE US CANADA AND MEXICO WILL TRY TO WRAP UP THIS WEEK NEGOTIATIONS FOR ENVIRONMENTAL AND LABOR SIDE ACCORDS TO THE PLANNED NORTH AMERICAN FREE TRADE AGREEMENT TRADE ANALYSTS SAID THE NEGOTIATIONS WHICH WILL RESUME IN WASHINGTON THURSDAY WILL INVOLVE US TRADE REPRESENTATIVE MICKEY KANTOR MEXICAN TRADE SECRETARY JAIME SERRA PUCHE AND CANADIAN TRADE MINISTER THOMAS HOCKIN MR HOCKIN TOLD REPORTERS I THINK WE ARE VERY CLOSE TO A CONCLUSION TO THE ACCORDS RUFUS YERXA THE CHIEF US NEGOTIATOR SAID HE HOPED THIS WEEK'S MEETING WOULD BE PRODUCTIVE BUT HE SAID WE STILL HAVE SOME DIFFERENCES MR YERXA AND HIS CANADIAN AND MEXICAN COUNTERPARTS MET IN OTTAWA LAST WEEK TO PREPARE THE GROUND FOR FINAL DECISIONS BY THE MINISTERS THE NEGOTIATING TEAMS DRAFTED TEXTS FOR THE PROPOSED AGREEMENTS AND SET OUT OPTIONS FOR SETTLING REMAINING DIFFERENCES JOHN WEEKES CANADA'S CHIEF NEGOTIATOR SAID ONE OF THE DIFFICULT ISSUES REMAINS A US DEMAND THAT THE SIDE ACCORDS INCLUDE SANCTIONS TO ENSURE THAT THE THREE COUNTRIES ENFORCE THEIR LABOR AND ENVIRONMENTAL STANDARDS US CRITICS OF THE FREE TRADE PACT SAY THAT UNLESS MEXICO IN PARTICULAR IS REQUIRED TO ENFORCE ITS LABOR AND ENVIRONMENTAL LAWS US COMPANIES WILL TEND TO SHIFT THEIR OPERATIONS THERE TO TAKE ADVANTAGE OF LAX REGULATION PRESIDENT CLINTON IN KEEPING WITH AN ELECTION PLEDGE HAS SAID HE WON'T SUBMIT THE NAFTA AGREEMENT TO CONGRESS UNLESS HIS ADMINISTRATION IS ABLE TO NEGOTIATE EFFECTIVE LABOR AND ENVIRONMENTAL SIDE ACCORDS THE TRADE AGREEMENT IF RATIFIED WILL PHASE OUT MOST TRADE BARRIERS AMONG THE THREE COUNTRIES CREATING A NORTH AMERICAN MARKET OF 360 MILLION PEOPLE MR HOCKIN SAID PROTECTIONISTS WOULD HAVE A FIELD DAY IF THE SIDE ACCORDS INCLUDE TRADE SANCTIONS THE NAFTA AGREEMENT IS SUPPOSED TO REDUCE BARRIERS TO TRADE NOT TO GIVE NEW SCOPE TO PROTECTIONISTS HE SAID IF RATIFIED THE TRADE AGREEMENT IS TO TAKE EFFECT JAN 1 9307260146 930726 CATERPILLAR SWINGS TO 2NDPERIOD PROFIT FROM A DEFICIT AS RECOVERY CONTINUES BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CATERPILLAR INC SWUNG TO A MODERATE PROFIT IN THE SECOND QUARTER PROVIDING EVIDENCE THAT THE CONSTRUCTIONEQUIPMENT MAKER'S NASCENT RECOVERY IS CONTINUING THE PEORIA ILL COMPANY IN RECENT MONTHS A FAVORITE INFRASTRUCTURE PLAY FOR INVESTORS REPORTED NET INCOME OF 67 MILLION OR 66 CENTS A SHARE WHILE MODEST THE EARNINGS MARKED A BIG IMPROVEMENT OVER THE YEAREARLIER QUARTER'S LOSS OF 64 MILLION OR 63 CENTS A SHARE REVENUE ROSE 12 TO 291 BILLION FROM 26 BILLION THE COMPANY NOTED THAT US SALES JUMPED 24 WHILE OVERSEAS SALES HAMPERED BY A SOFTERTHANANTICIPATED EUROPEAN MARKET INCHED UP 1 CATERPILLAR NOW EXPECTS EUROPEAN SALES FOR THE REST OF THE YEAR TO BE LOWER THAN IT HAD PREDICTED BUT SAID THAT SHORTFALL SHOULD BE AT LEAST OFFSET BY HIGHER SALES IN THE US THE LATEST EARNINGS SLIGHTLY TOPPED MOST ANALYSTS' EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY CATERPILLAR SHARES INITIALLY FALTERED THEN TURNED HIGHER AND CLOSED UP 2625 AT A 52WEEK HIGH OF 8025 CATERPILLAR SHARES HAVE RISEN 45 SINCE FEBRUARY BECAUSE OF A PROTRACTED INDUSTRY SLUMP CATERPILLAR'S LAST PROFITABLE YEAR WAS 1990 BUT IN REPORTING STRONGERTHANEXPECTED FIRSTQUARTER RESULTS THIS YEAR CATERPILLAR PREDICTED IN APRIL THAT IT WOULD BE PROFITABLE IN 1993 IT SAID FRIDAY THAT ITS OUTLOOK FOR 1993 IS ESSENTIALLY UNCHANGED ALTHOUGH THE US MARKET WILL PROVIDE A HIGHER PERCENTAGE OF SALES THAN ANTICIPATED CATERPILLAR HAS BENEFITED THIS YEAR FROM EARLIER COSTCUTTING MEASURES INCLUDING MANUFACTURING EFFICIENCIES AND A 5 REDUCTION IN ITS WORK FORCE TO 50109 FROM 52527 A YEAR AGO THE YEAREARLIER PERIOD'S SALES WERE DAMPED TO AN UNKNOWN EXTENT BY A STRIKE BY CATERPILLAR'S EMPLOYEES WHILE NO FINAL PACT HAS BEEN NEGOTIATED THE WORKERS RETURNED LAST YEAR UNDER TERMS OF A CONTRACT THAT THE COMPANY IMPOSED CATERPILLAR NOTED THAT CERTAIN CHANGES IN BENEFITS HELPED REDUCE COSTS IN ADDITION THE YEN'S STRENGTH VERSUS THE DOLLAR HAS FORCED THE KOMATSU LTD JOINT VENTURE THAT COMPETES WITH CATERPILLAR IN THE US TO RAISE PRICES THIS YEAR WHILE ANOTHER US COMPETITOR HAS BEEN IMPEDED BY INTERNAL DIFFICULTIES THOSE SITUATIONS HAVE ENABLED CATERPILLAR TO RAISE PRICES AND INCREASE MARKET SHARE CATERPILLAR SAID SALES INCREASED TO NEARLY EVERY SECTOR IT SERVES SALES TO HOUSING CONTRACTORS ROSE STRONGLY AND THOSE TO BUILDERS OF COMMERCIAL AND INDUSTRIAL PROPERTIES WERE UP SUBSTANTIALLY THE COMPANY IS SEEN BY MANY AS BEING POISED WHEN THE DOMESTIC CONSTRUCTIONEQUIPMENT INDUSTRY REGAINS FULL STRENGTH TO GENERATE AN EXTREMELY HIGH LEVEL OF PROFITS AS IT HAS IN EARLIER UP INDUSTRY CYCLES BUT THERE IS LESS AGREEMENT ON HOW FAR IN THE FUTURE SUCH IMPROVEMENT LIES CAT IS DOING THE RIGHT THINGS SAID PAINEWEBBER INC ANALYST ELI LUSTGARTEN WHAT HE CHARACTERIZED AS THE COMPANY'S INCREASED FOCUS ON PROFITABILITY HAS IMPROVED PROFITS ON THE BUSINESS AVAILABLE TO IT BUT THE ANALYST WHO CONTINUES TO RATE THE STOCK UNATTRACTIVE DESPITE PROJECTING PERSHARE EARNINGS OF 465 FOR 1994 SAID HE THINKS THE STOCK MARKET IS EXPECTING MORE THAN THE COMPANY CAN DELIVER IN THE INTERMEDIATE TERM 9307260145 930726 FINANCING BUSINESS MEDIQ INC MEDIQ INC PENNSAUKEN NJ SAID IT SOLD 30 MILLION OF 7 1/2 SUBORDINATED DEBENTURES DUE 2003 THAT ARE EXCHANGEABLE FOR SHARES OF NUTRAMAX PRODUCTS INC THAT ARE OWNED BY MEDIQ THE COMPANY OWNS ABOUT FOUR MILLION SHARES OR ABOUT 499 OF NUTRAMAX A MAKER OF PRIVATELABEL HEALTH AND PERSONALCARE PRODUCTS THE INITIAL EXCHANGE RATE IS 653595 NUTRAMAX SHARES PER 1000 PRINCIPAL AMOUNT OF DEBENTURES MEDIQ WHICH RENTS CRITICALCARE EQUIPMENT AND PROVIDES PORTABLE XRAY NUCLEARIMAGING AND ULTRASOUND SERVICES WILL USE THE PROCEEDS TO REPAY SENIOR DEBT AND FOR GENERAL CORPORATE PURPOSES DILLON READ & CO WAS MANAGING UNDERWRITER 9307260144 930726 LETTERS TO THE EDITOR AMERICA'S NOTARIES EVER FAITHFUL AND TRUE I WAS DISAPPOINTED IN YOUR JUNE 15 PAGE ONE ARTICLE IT'S A PROUD CALLING BUT THE NOTARY'S LOT IS FULL OF INDIGNITIES A NOTARY IS A RESPONSIBLE PERSON APPOINTED BY STATE GOVERNMENT TO WITNESS THE SIGNING OF IMPORTANT DOCUMENTS AND ADMINISTER OATHS NOTARIES ARE FOUND IN EVERY CIVILIZED NATION OF THE WORLD AS IMPARTIAL WITNESSES NOTARIES VERIFY THE IDENTITY WILLINGNESS AND GENERAL COMPETENCE OF EACH DOCUMENT SIGNER THEY ARE PERHAPS THE ONLY PUBLIC OFFICIALS IN THE US WHO RECEIVE THEIR COMMISSIONS BECAUSE OF THEIR INTEGRITY HONESTY AND WILLINGNESS TO SERVE THE PUBLIC GIVEN THE COMPLEXITIES OF TODAY'S WORLD ECONOMY AND THE SOCIETY AT LARGE THE IMPORTANCE OF IMPARTIAL WITNESSES NOTARIES CONTINUES TO INCREASE AND THEIR ROLE CANNOT BE UNDERESTIMATED A NOTARY'S DUTIES INCLUDE PROPERLY FILLING OUT CERTIFICATES THERE ARE HUNDREDS OF DIFFERENT ONES ADMINISTERING OATHS SCRUTINIZING ID CARDS TO MAKE SURE THEY ARE NOT FRAUDULENT AND KEEPING ABREAST OF THE NOTARIAL LAWS AND REGULATIONS THAT ARE BEING REFINED AND CHANGED THE FUNCTION OF A NOTARY IS NOT SUPERFICIAL OR UNIMPORTANT AS YOU IMPLY WITHOUT THE 42 MILLION NOTARIES ACROSS THE US PROPERLY NOTARIZING DOCUMENTS COMMERCE AND LAW WOULD GRIND TO A HALT WITHOUT NOTARIES OUR COURTS WOULD BE CLOGGED WITH LEGAL CHALLENGES TO FORGED COERCED AND INCOMPETENT SIGNATURES WOULD ANY READER PAY 100000 FOR A HOUSE WITHOUT AN ASSURANCE OF THE SELLER'S IDENTITY OF COURSE NOT BY NOTARIZING DOCUMENTS AND TAKING OATHS NOTARIES HELP PREVENT FRAUD THEY ENSURE THAT THE SIGNERS OF DOCUMENTS ARE REALLY WHO THEY SAY THEY ARE THE OFFICE OF NOTARY PUBLIC ORIGINALLY KNOWN AS NOTARIUS WAS STARTED IN THE DAYS OF CAESAR IN ROME ABOUT 2000 YEARS AGO IT DID NOT ORIGINATE IN BABYLON AS YOU SAID THE NATIONAL NOTARY ASSOCIATION HAS A MEMBERSHIP OF ABOUT 80000 NOT 40000 AS REPORTED 9307260142 930726 INTERNATIONAL TAIWAN JOBLESS RATE TAIPEI TAIWAN TAIWAN'S UNEMPLOYMENT RATE STOOD AT 14 OF THE WORK FORCE IN JUNE DOWN 014 PERCENTAGE POINT FROM THE YEAREARLIER MONTH BUT UP 011 PERCENTAGE POINT FROM MAY THE DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS SAID 9307260141 930726 WHO'S NEWS GENCOR INDUSTRIES INC GENCOR INDUSTRIES INC ORLANDO FLA DAVID F BRASHEARS 46 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT TECHNOLOGY AT THIS MANUFACTURER OF CONSTRUCTION EQUIPMENT AND OTHER MATERIALS HE PREVIOUSLY SERVED AS VICE PRESIDENT ENGINEERING 9307260140 930726 WHO'S NEWS INTRENET INC INTRENET INC EAST BRUNSWICK NJ JAMES V DAVIS 52 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT A NEWLY CREATED POSITION AT THIS TRUCKING CONCERN MR DAVIS HAD BEEN CHIEF OPERATING OFFICER OF MITSUI OSK LINES AMERICA INC 9307260139 930726 HEARD ON THE STREET BULLS IN CANADA EXPECT THEIR RALLY TO BROADEN BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADA'S STOCK MARKET HAS COME ROARING BACK TO LIFE AND ANALYSTS EXPECT CANADIAN STOCK PRICES TO ACCELERATE FURTHER INVESTORS' FIRSTHALF ENTHUSIASM FOR NATURALRESOURCES SHARES COULD SOON BEGIN SPREADING TO OTHER AREAS OF THE CANADIAN MARKET SUCH AS INDUSTRIAL STOCKS BULLISH ANALYSTS SAY THE DRIVING FORCE FOR THIS MARKET HAS BEEN LOWER INTEREST RATES AND THE DRAMATIC FALL IN OUR CURRENCY SAYS SATISH RAI PORTFOLIO MANAGER AND HEAD OF EQUITY TRADING FOR TD ASSET MANAGEMENT A UNIT OF TORONTODOMINION BANK UNLESS AND UNTIL WE GET A SHARP RISE IN EITHER RATES OR THE CANADIAN DOLLAR I DON'T SEE THIS RALLY PETERING OUT WHILE THE TORONTO STOCK EXCHANGE'S BROADLY BASED 300 COMPOSITE INDEX HAS YET TO MATCH ITS PRE1987CRASH HIGH OF 411290 IT RECORDED A 17 GAIN IN THE FIRST SIX MONTHS OF THE YEAR EVEN AFTER A DOWNTURN THIS MONTH THE INDEX IS STILL UP MORE THAN 14 SINCE DEC 31 TO 383019 THAT COMPARES WITH A YEARTODATE GAIN OF ONLY ABOUT 2 IN THE US BENCHMARK STANDARD & POOR'S 500 INDEX MOST OF THE GAINS IN THE LONGAWAITED BULL MARKET HAVE REFLECTED RISING PRICES FOR NATURAL GAS LUMBER AND GOLD THAT PUSHED UP THE SHARES OF RESOURCES COMPANIES SOME ENERGY STOCKS DOUBLED WHILE THE TORONTO STOCK EXCHANGE'S GOLD AND SILVER INDEX IS UP 419 SO FAR THIS YEAR A BELIEF THAT RESOURCES STOCKS ARE GETTING PRICEY TOGETHER WITH FEARS THAT SECONDQUARTER CORPORATE EARNINGS WON'T MATCH EXPECTATIONS HAVE PUSHED THE TORONTO STOCK EXCHANGE 300 INDEX DOWN 25 SINCE EARLY JULY STILL MANY ANALYSTS REMAIN BULLISH ARGUING THAT THE TEMPORARY SETBACK CLEARS THE WAY FOR A MORE BROADLY BASED RECOVERY BY CANADIAN STOCKS WITH INTEREST RATES AT A 26YEAR LOW HERE LARGE NUMBERS OF CANADIAN SMALL INVESTORS HAVE BEEN DRIVEN FROM THE SAFE HAVEN OF GOVERNMENT BONDS AND OTHER FIXEDINCOME INVESTMENTS INTO THE STOCK MARKET IN SEARCH OF HIGHER YIELDS MORE THAN 4 BILLION CANADIAN DOLLARS US313 BILLION OF NEW INVESTMENT CASH FLOODED INTO CANADIAN STOCK MUTUAL FUNDS IN THE FIRST SIX MONTHS OF 1993 ACCORDING TO THE INVESTMENT FUNDS INSTITUTE OF CANADA THAT INFLOW PROPELLED FUNDS' ASSETS TO A RECORD C2285 BILLION AT JUNE 30 FAR ABOVE THE C1307 BILLION OF A YEAR EARLIER FUND MANAGERS SAY THAT WHILE WITHDRAWALS OF MONEY ARE RISING AT RESOURCE FUNDS MOST INVESTORS APPEAR TO BE MOVING THEIR HOLDINGS INTO OTHER STOCK FUNDS RATHER THAN QUITTING THE MARKET A SPATE OF STOCK OFFERINGS ALSO HAS RIPPLED THOUGH THE CANADIAN MARKET AT ONE END OF THE SPECTRUM THERE HAS BEEN A STRING OF SMALL OFFERINGS BY COMPANIES AS VARIED AS A CHAIN OF AUTOREPAIR SHOPS A LIVETHEATER PRODUCTION COMPANY AND A BULLSEMEN MARKETING CONCERN AT THE OTHER EXTREME TWO GIANT OFFERINGS OF STOCK IN THE ALREADYPUBLIC COMPANIES MACMILLAN BLOEDEL LTD AND BREWER JOHN LABATT LTD RAISED A TOTAL OF C196 BILLION FOR THE CASHSTRAPPED CORPORATE EMPIRE CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN THE DIVESTITURE OF THESE CONTROL POSITIONS WAS PROBABLY ONE OF THE BEST THINGS TO HAPPEN TO THE CANADIAN MARKET SAYS FRED KETCHEN HEAD OF EQUITY TRADING AT SCOTIAMCLEOD INC IT'S HELPED ADD LIQUIDITY TO THE MARKET AND A LACK OF LIQUIDITY IS ONE REASON FOR THE UNDERPERFORMANCE OF CANADIAN STOCKS BOOSTING THE MARKET FURTHER ARE FOREIGN INVESTORS IN THE FIRST FIVE MONTHS OF 1993 STATISTICS CANADA SAYS NET FOREIGN PURCHASES OF CANADIAN STOCKS TOTALED C429 BILLION UP FROM C244 MILLION IN THE YEAREARLIER PERIOD THIS INDICATES THAT AMERICAN INVESTORS HAVE WARMED UP TO FOREIGN MARKETS IN GENERAL SAYS GEORGE DOMOLKY MANAGER OF BOSTONBASED FIDELITY INVESTMENTS' CANADA FUND WHICH HAS BALLOONED IN SIZE TO 120 MILLION AT JUNE 30 FROM 268 MILLION AT YEAR END I BELIEVE IT ALSO RECOGNIZES THAT CANADIAN STOCKS STILL HAVE A LOT OF GROUND TO MAKE UP AND THAT THERE'S STILL VERY GOOD PROFIT POTENTIAL THE RECENT MARKET DOWNTURN HASN'T UNNERVED MANY MONEY MANAGERS SEVERAL HAD EXPECTED JUST SUCH A DOWNTURN AND FORECAST A QUICK RECOVERY AT MACKENZIE FINANCIAL CORP ONE OF CANADA'S LARGEST FUND MANAGEMENT CONCERNS MOST OF ITS CANADIAN EQUITY FUNDS HAD BUILT UP CASH POSITIONS AMOUNTING TO AS MUCH AS 30 TO 40 OF THEIR ASSETS WE'RE DEFINITELY WATCHING FOR THE OPPORTUNITY TO PUT THIS CASH TO WORK SAYS FRED STURM VICE PRESIDENT OF MACKENZIE BUT MR STURM BELIEVES THAT WHEN THE MARKET REBOUNDS SUCCESSFUL INVESTORS WILL NEED TO PICK THE RIGHT STOCKS RATHER THAN BETTING THE BANK ON A HOT SECTOR THE PROBLEM WITH THE CANADIAN MARKET IS THAT IT'S ALL BEEN PROPELLED BY MOMENTUM INVESTING NOT VALUE INVESTING SAYS JIM DOAK DIRECTOR OF RESEARCH AT SCOTIAMCLEOD THERE ARE A LOT OF GOOD STOCKS THAT HAVE BEEN OVERLOOKED SEARCHING FOR VALUE SOME INVESTORS ARE LOOKING AT SECTORS OF THE CANADIAN ECONOMY THAT THEY FEEL ARE MOST LIKELY TO BENEFIT FROM AN ECONOMIC RECOVERY EITHER IN CANADA OR GLOBALLY MR DOAK FAVORS STRONG COMPANIES IN WEAK INDUSTRIES AMONG THEM RETAILER DYLEX LTD WHICH HE ARGUES HAS BOTH MORE CASH AND BETTER GROWTH PROSPECTS THAN THE MARKET HAS ACKNOWLEDGED AND CAMBRIDGE SHOPPING CENTRES LTD A REALESTATE CONCERN WITH LITTLE EXPOSURE TO THE WOES OF THE OFFICE PROPERTY MARKET ANOTHER FAN OF CYCLICAL STOCKS IS FIDELITY'S MR DOMOLKY WHO BELIEVES THAT AN ECONOMIC RECOVERY IN CANADA HASN'T BEEN FULLY REFLECTED IN THE MARKET HIS PICKS INCLUDE STEEL COMPANIES SUCH AS COSTEEL INC AND IPSCO INC SOME METALS PRODUCERS AND PUBLISHING AND CABLE COMPANIES SUCH AS MACLEAN HUNTER LTD CANADIAN BANKS TOP MANY BUY LISTS AS INTEREST RATES FALL BANKS BENEFIT FROM THE WIDENING SPREAD BETWEEN THE INTEREST RATES PAID ON DEPOSITS AND THOSE CHARGED ON LOANS STOCK MARKETS HAVEN'T PEAKED YET SAYS SUBODH KUMAR PORTFOLIO STRATEGIST AT WOOD GUNDY INC A TORONTO INVESTMENT DEALER WHO RECOMMENDS BANKS AS A LOWRISK WAY TO PLAY A FURTHER UPTURN WE FEEL THE TSE 300 COMPOSITE COULD END THE YEAR SETTING A NEW HIGH AROUND 4200 OR 4300 BUT WE'RE LOOKING FOR DIFFERENT LEADERSHIP IN THE NEXT STAGE OF THE EXPANSION HEARD 9307260138 930726 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST SINGLE STATE MUNI BOND WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY SUBSCRIBED FNAV FOR 7/16 WAS 1419 GNAV FOR 7/16 WAS 1721 VCONVERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE 9307260137 930726 HERITAGE MEDIA CONVERTS STOCK DALLAS HERITAGE MEDIA CORP SAID IT CONVERTED ITS CLASS B COMMON STOCK WHICH HAD SUPERVOTING RIGHTS INTO CLASS A STOCK WHICH CARRIES ONE VOTE A SHARE THE COMPANY WILL CONTINUE TO HAVE CLASS C SHARES WHICH ARE NONVOTING BUT CAN BE CONVERTIBLE INTO CLASS A SHARES AT THE RATE OF 1FOR1 9307260136 930726 WHO'S NEWS ARCO CHEMICAL CO ARCO CHEMICAL CO NEWTON SQUARE PA FRANK SAVAGE 55YEAROLD CHAIRMAN OF EQUITABLE CAPITAL MANAGEMENT CORP WAS ELECTED A DIRECTOR OF THIS CHEMICAL CONCERN INCREASING BOARD MEMBERSHIP TO 13 9307260135 930726 LEISURE & ARTS TELEVISION AIDS TO IRIDOLOGY HEALTH ON PRIMETIME BY DOROTHY RABINOWITZ IT'S HARD TO BELIEVE THAT A TIME COULD COME AS IT HAS WHEN SANE PEOPLE ACTUALLY LONG FOR THE TV PHENOMENON KNOWN AS THE DISEASE OF THE WEEK THE RICH ASSORTMENT OF LIFETHREATENING AILMENTS AND PLAGUES THAT ONCE WAS THE BASIS OF SO MANY SODDEN DRAMAS SERIALS AND MADEFORTV MOVIES ALL THAT IS PAST NOW AS ANYONE CAN PLAINLY SEE THERE IS JUST ONE DISEASE PREOCCUPYING CREATIVE MINDS IN THE TV WORLD AIDS SO MANY CHARACTERS ARE NOW THREATENED WITH AIDS ON PRIMETIME IT'S NO TRICK TO KNOW WHAT THE PROBLEM IS GOING TO BE WHEN SOMEBODY MAKES A WORRIED VISIT TO THE DOCTOR IT'S NOT GOING TO BE CANCER OR HEART DISEASE WHICH ARE BY FAR THE LEADING CAUSES OF DEATH IN A RECENT SPATTER OF FOX SHOWS ON THE SUBJECT CHARACTERS WERE FRIGHTENED INTO TAKING HIV TESTS IN SUCH SHOWS OF COURSE NOBODY IMPORTANT ACTUALLY EVER TESTS POSITIVE ALDO THE MANLY LOOKING NUMSKULL CENTRAL TO THE ACTION IN DOWN THE SHORE SWEATED OUT THE WAIT FOR RESULTS IN HIS LITTLE BLACK SHORTS AND TANK TOP IN MELROSE PLACE JAKE AND HIS GIRLFRIEND RETREATED TO THE DESERT SANDS AND EXCHANGED LARGE THOUGHTS IN A RECENT EPISODE OF CBS'S PICKET FENCES THE ISSUE WAS DISCLOSURE NOT TESTING THE QUESTION AT HAND WAS WHETHER A DENTIST WHO CONCEALED THE FACT THAT HE WAS HIVPOSITIVE SHOULD BE ALLOWED TO PRACTICE LIKE ALL OTHER DEBATES CONCEIVED FOR OUR EDIFICATION BY TV WRITERS THE OUTCOME OF THIS ONE WAS HARDLY EVER IN QUESTION THOUGH PICKET FENCES SHOULD BE CREDITED WITH A CERTAIN ZEST IN THE WAY IT PRESENTED BOTH SIDES OF THE ARGUMENT BUT OF COURSE THE JUDGMENT HANDED DOWN ULTIMATELY WAS THAT NO ONE IS IN DANGER FROM THE DENTIST AND THAT FEAR OF INFECTION FROM HEALTHCARE PROVIDERS AS DOCTORS AND DENTISTS ARE NOW UNFORTUNATELY KNOWN IS IGNORANT AND IMMORAL THE JUDGE'S APOPLECTIC PRONOUNCEMENT OF THIS VERDICT COULD ONLY SUGGEST THAT CITIZENS GIVING IN TO SUCH FEARS WOULD IN A BETTER WORLD MERIT RETRIBUTION SOMETHING ALONG THE LINES OF CAPITAL PUNISHMENT PERHAPS STILL PICKET FENCES AT LEAST CHANGED THE SUBJECT MEDICALLY SPEAKING WITH A PROGRAM TOUCHING ON PARKINSON'S DISEASE IT CONCERNED A VICTIM OF PARKINSON'S BUT THE ACTUAL SUBJECT WAS THE ISSUE OF FETALTISSUE IMPLANTS A POTENTIAL CURE RESEARCH ON THE IMPLANTS WAS BLOCKED BY THE FEDERAL GOVERNMENT FOR YEARS UNTIL THE CLINTON ADMINISTRATION LIFTED THE BAN THE CHARGE AGAINST THE USE OF FETAL TISSUE HAS TO DO WITH THE FEAR THAT IT MIGHT INCREASE THE NUMBER OF ABORTIONS BY INDUCING WOMEN TO BECOME PREGNANT SIMPLY IN ORDER TO SELL THE FETAL TISSUE THIS SEGMENT OF PICKET FENCES YIELDED A HOT AND MOSTLY LIVELY DEBATE ABOUT RIGHTS THE RIGHTS OF THE SICK THE RIGHTS OF FETUSES AND OF COURSE ABOUT THE PERFIDIES OF THE STATE THE CHURCH TOO WAS AT THE CENTER OF THIS DRAMA REPRESENTED WITH THAT SUBTLETY FOR WHICH PRIMETIME TV IS RENOWNED BY A HYSTERICAL PRIEST RANTING ABOUT CUTTING OFF HOSPITAL FUNDS HERE TOO THE OUTCOME WAS NEVER IN QUESTION THE JUDGE RULED AGAINST THE OPERATION BUT THE PATIENT GOT THE TRANSPLANT ANYWAY THANKS TO A HEROIC DOCTOR WHO TOOK THE OPERATING ROOM BY FORCE IN THE NONFICTION DEPARTMENT OF HEALTH STRUGGLES ARE LESS EASILY RESOLVED AND MORE GRIPPING THIS IS ESPECIALLY TRUE OF SUNDAY'S CNN PRESENTS HEALTHCARE HAZARDS 910 PM HOSTED BY JUDY WOODRUFF A SPECIAL ON QUACKERY VARIED IN SCOPE AND TOUGH IN TONE THE RESULT IS A POTENT 60 MINUTES NOTWITHSTANDING THE SHOW'S LEADEN TITLE WHILE ALL THOSE FICTIONAL TV CHARACTERS ARE RUNNING AROUND GETTING NEGATIVE RESULTS ON THEIR HIV TESTS THERE ARE THIS SHOW REMINDS US REAL PEOPLE RACING ABOUT TRYING TO FIND CURES FOR A WORLD OF OTHER DISEASES REAL AND IMAGINED ONE SEGMENT CONCERNS THE NOSTRUMS AND VARIOUS ALTERNATIVE THERAPIES THAT THEY SEEK OUT OR THAT SEEK THEM OUT CORRESPONDENT DAVID LEWIS TAKES CAMERAS TO AN ALTERNATIVEHEALTH CONVENTION WHERE WE ARE PRIVILEGED TO HEAR ABOUT SOMETHING CALLED MAGNET THERAPY DON'T ASK WHAT THIS IS COUNTLESS OTHER OUTOFTHISWORLD TREATMENTS FOR SUFFERERS OF CANCER DIABETES CHRONIC FATIGUE AND SUCH ARE ALSO ON DISPLAY HERE THE REPORT GOES ON TO DESCRIBE THE WORKINGS OF A HIGHLY SUCCESSFUL DIETARYSUPPLEMENT COMPANY NATURE'S SUNSHINE PRODUCTS INC WHICH SELLS HERBS AND VITAMINS AND ALSO IT APPEARS THE EXOTIC SCIENCE OF IRIDOLOGY ACCORDING TO ITS PRACTITIONERS A TRAINED READER OF THE IRIS OF THE EYE CAN DETECT ALL THE BODILY ILLS THAT MIGHT PLAGUE A PERSON WE MEET UP WITH A NUMBER OF SUCH EXPERTS ALL OF WHOM LOOK AND SOUND LIKE THE SORT OF GENTLEFOLK WILLING TO READ YOUR PALM FOR A FIVER ANOTHER REPORT BY KATHY SLOBOGIN DEALS WITH THE LATEST MANIFESTATION OF THE CHILDSEXABUSE CRAZE THIS IS NAMELY THE THERAPY THAT INSTRUCTS PATIENTS TO BELIEVE THAT ALL THEIR FEARS DEPRESSION AND OTHER LIFE PROBLEMS STEM FROM EARLY CHILDHOOD SEX ABUSE THE MEMORY OF WHICH HAS SOMEHOW ELUDED THE VICTIMS INDEED THE VISIT TO THE THERAPIST IS USUALLY THE FIRST THE UNFORTUNATE PATIENT AND THE PATIENT'S STILL MORE UNFORTUNATE FAMILY HEARS OF IT MS SLOBOGIN'S ANALYSIS OF THIS NONSENSE IS STRAIGHTFORWARD AND TOUGH AS ARE THE JUDGMENTS DELIVERED BY THE CHIEF OF PSYCHIATRY AT JOHNS HOPKINS PAUL MCHUGH THAT THE REPRESSEDSEXTRAUMA SYNDROME IS INCLUDED IN THIS CATEGORY OF QUACK THERAPIES IS ITSELF OF COURSE A STRAIGHTFORWARD JUDGMENT ON THE SUBJECT IN ONE OF THE MOST TELLING PARTS OF THE SEGMENT A PROGRAM PRODUCER MASQUERADES AS A PATIENT SUFFERING FROM DEPRESSION SHE CONSULTS ARMED WITH HIDDEN CAMERA WITH A THERAPIST WHO IS A LEADING PROPONENT OF THE REPRESSEDMEMORY THEORY THE RESULTING ENCOUNTER AND THE THERAPIST'S COMMENTS MAKE THE IRIDOLOGISTS SOUND BY COMPARISON LIKE MEDICAL EMINENCES OF THE FIRST RANK THE PROGRAM ALSO INCLUDES A STORY BY REPORTER BROOKS JACKSON ON THE SOMETIMES TOXIC EFFECTS OF VOLTAREN A WIDELY USED ANTIARTHRITIS MEDICATION A REPORT IS SOON TO BE MADE PUBLIC WE LEARN ABOUT THIS DRUG'S POTENTIAL TO DAMAGE LIVERS THE DRUG'S EFFECTS ON ONE WOMAN RECOUNTED IN THIS REPORT ARE SUCH THAT A LOT OF PEOPLE ARE GOING TO END UP READING EVERY WORD OF THE SMALLPRINT WARNINGS ON THE LABEL BEFORE THEY EVER AGAIN SWALLOW ANY ANTIARTHRITIS MEDICATION 9307260134 930726 SENATE EXPECTED TO CONFIRM JUDGE GINSBURG NEXT WEEK WASHINGTON SUPREME COURT NOMINEE RUTH BADER GINSBURG IS EXPECTED TO BE APPROVED BY THE SENATE JUDICIARY COMMITTEE ON THURSDAY AND CONFIRMED BY THE FULL SENATE NEXT WEEK JUDGE GINSBURG CONCLUDED HER TESTIMONY BEFORE THE COMMITTEE ON FRIDAY IN A BRIEF CLOSED SESSION DESIGNED TO AIR ANY PERSONAL OR ETHICAL ISSUES COMMITTEE MEMBERS INDICATED AFTERWARD THAT NO SUBSTANTIAL QUESTIONS AROSE OUTSIDE WITNESSES WHO OVERWHELMINGLY FAVORED THE ELEVATION OF THE FEDERAL APPELLATE JUDGE ALSO TESTIFIED BEFORE THE PANEL FRIDAY CHAIRMAN JOSEPH BIDEN D DEL SAID HE HOPED THAT THE FULL SENATE WOULD CONFIRM JUDGE GINSBURG BEFORE THE LAWMAKERS DEPART FOR THEIR SUMMER RECESS AUG 6 IT'S POSSIBLE HOWEVER THAT DESPITE THE BROAD SUPPORT FOR THE NOMINEE A CONSERVATIVE REPUBLICAN COULD TAKE A SYMBOLIC SWIPE AT PRESIDENT CLINTON BY TRYING TO DELAY THE CONFIRMATION VOTE A WHITE HOUSE OFFICIAL SAID FRIDAY 9307260132 930726 TECHNOLOGY TECHNOPHOBIA STILL INFECTS SOME AMERICANS POLL SAYS AUSTIN TEXAS A SOLID MINORITY OF AMERICANS ARE UNCOMFORTABLE USING MOST DIGITAL PRODUCTS ACCORDING TO A NEW POLL BY DELL COMPUTER CORP SOME 8 ARE EVEN UNCOMFORTABLE WITH DIGITAL ALARM CLOCKS UNSURPRISINGLY 23 OF ADULTS ARE UNCOMFORTABLE USING COMPUTERS THAT'S ABOUT THE SAME AS THE NUMBER DISCOMFITED BY AUTOMATIC TELLER MACHINES EVEN MORE ADULTS WERE UNCOMFORTABLE WITH PROGRAMMABLE THERMOSTATS AND CAR PHONES BASED ON THE POLL DELL SAYS 55 OF ALL AMERICANS ARE TECHNOPHOBIC TO SOME DEGREE AND ADDS THAT ABOUT ONEFOURTH OF ALL ADULTS HAVE NEVER SET A VCR TO RECORD A TELEVISION SHOW OR PROGRAMMED THE BUTTONS ON A CAR RADIO SOME 55 OF WOMEN ADMIT SUFFERING TO SOME DEGREE FROM TECHNOPHOBIA AND 45 OF MEN TEENAGERS ARE SIGNIFICANTLY MORE COMFORTABLE WITH ALL DIGITAL TECHNOLOGY ONLY 8 OF THE 500 TEENS SURVEYED SAID THEY HAD NEVER USED A COMPUTER COMPARED WITH ONETHIRD OF THE ADULTS ACCORDING TO THE POLL ONE QUARTER OF THE 1000 ADULTS SURVEYED MISS THE DAYS WHEN WE JUST HAD TYPEWRITERS 9307260131 930726 PROMUS GETS CREDIT FACILITY MEMPHIS TENN PROMUS COS SAID IT CLOSED A 650 MILLION FIVEYEAR REVOLVING CREDIT FACILITY TO REFINANCE ITS EXISTING CREDIT THE HOTEL AND CASINO OPERATOR SAID ITS NEW FACILITY WILL REDUCE INTEREST COSTS BOOST ITS ABILITY TO BORROW AND PROVIDE FLEXIBILITY FOR ITS CASINO EXPANSION PLANS 9307260130 930726 PARAGON TRADE BRANDS' PROFIT UP FEDERAL WAY WASH PARAGON TRADE BRANDS INC SAID HEALTHY SALES AND IMPROVED PROFIT MARGINS HELPED DOUBLE SECONDQUARTER NET INCOME TO 66 MILLION OR 58 CENTS A SHARE FROM 33 MILLION OR 29 CENTS A SHARE A YEAR EARLIER THE DIAPER MAKER SAID REVENUE GREW 18 THE COMPANY SAID MATERIAL PRICES FELL AND OPERATING EFFICIENCY IMPROVED BOOSTING PROFIT MARGINS 9307260129 930726 ARCHER DANIELS STOCK BUYBACK DECATUR ILL ARCHER DANIELS MIDLAND CO SAID DIRECTORS APPROVED THE REPURCHASE OF AS MANY AS 20 MILLION SHARES OF ITS COMMON STOCK IN THE OPEN MARKET THE SHARES WILL BE AVAILABLE FOR ACQUISITIONS STOCK DIVIDENDS FUNDING PENSION AND OTHER EMPLOYEEBENEFIT PLANS AND OTHER CORPORATE PURPOSES ARCHER DANIELS HAS ABOUT 323 MILLION SHARES OUTSTANDING 9307260128 930726 ZIMBABWE GOLD OUTPUT RISES JOHANNESBURG SOUTH AFRICA ZIMBABWE INCREASED ITS GOLD PRODUCTION 36 TO 9261 KILOGRAMS IN THE FIRST SIX MONTHS OF 1993 FROM 8941 KILOGRAMS A YEAR EARLIER THE COUNTRY'S CHAMBER OF MINES SAID THE GOLD PRODUCTION WAS VALUED 23 HIGHER AT 368 MILLION RAND 110 MILLION UP FROM 299 MILLION RAND A YEAR EARLIER THE CHAMBER OF MINES SAID IT EXPECTS A SHARPER RISE IN GOLD PRODUCTION IN THE SECOND HALF OF THE YEAR GOLD IS EXPECTED TO BE ZIMBABWE'S HIGHEST VALUE EXPORT IN 1993 DUE TO A DISASTROUS SEASON FOR TOBACCO THE CHAMBER SAID THE WORLD TOBACCO MARKET IS CURRENTLY OVERSUPPLIED THE CHAMBER SAID 9307260127 930726 ITALY'S FIRSTQUARTER JOBLESS RATE MILAN ITALY'S UNEMPLOYMENT RATE FELL TO 105 IN 1993'S FIRST QUARTER FROM 113 IN THE YEAREARLIER PERIOD ACCORDING TO QUARTERLY FIGURES RELEASED SATURDAY BY STATE STATISTICAL INSTITUTE ISTAT THE TOTAL NUMBER OF PEOPLE LOOKING FOR WORK IS 24 MILLION OF WHICH ABOUT ONE MILLION ARE FIRSTTIME JOB SEEKERS THE UNEMPLOYMENT RATE WAS HIGHEST IN THE UNDERDEVELOPED SOUTH WHICH POSTED AN UNEMPLOYMENT RATE OF 1793 IN THE FIRST QUARTER 9307260126 930726 WHO'S NEWS IVAX CORP IVAX CORP MIAMI JOHN K WHISNANT 50 YEARS OLD WAS PROMOTED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AT BAKER NORTON PHARMACEUTICALS INC THE BRAND NAME PHARMACEUTICALS MARKETING SUBSIDIARY OF THIS COMPANY MR WHISNANT PREVIOUSLY SERVED AS VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AT THE UNIT 9307260125 930726 BOB EVANS AUTHORIZES BUYBACK COLUMBUS OHIO BOB EVANS FARMS INC SAID ITS BOARD AUTHORIZED REPURCHASING AS MUCH AS 500000 SHARES OF THE COMPANY'S COMMON STOCK THE COMPANY SAID THE TIMING OF THE PURCHASES AND NUMBER OF SHARES PURCHASED WILL DEPEND ON MARKET CONDITIONS THE SHARES WILL BE PURCHASED FROM TIME TO TIME ON THE OPEN MARKET OR THROUGH PRIVATELY NEGOTIATED TRANSACTIONS THE COMPANY SAID BOB EVANS SAID THE BUYBACK PROGRAM WILL END APRIL 29 1994 UNLESS IT IS EXTENDED AS OF APRIL 30 THE COMPANY HAD 42638118 COMMON SHARES OUTSTANDING 9307260124 930726 JAPANESE VEHICLE OUTPUT FALLS TOKYO JAPAN'S PRODUCTION OF CARS TRUCKS AND BUSES FELL 10 IN JUNE FROM THE YEAREARLIER MONTH TO 987997 UNITS MARKING THE NINTH CONSECUTIVE MONTH OF YEARONYEAR DECLINE THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION ANNOUNCED THE 987997 UNITS PRODUCED WAS THE LOWEST LEVEL FOR THE MONTH OF JUNE SINCE JUNE 1982 WHEN 967367 UNITS WERE BUILT AND THE 10 DROP WAS THE THIRD SHARPEST THIS YEAR FOLLOWING THE 14 FALL IN JANUARY AND THE 11 DECLINE IN APRIL 9307260123 930726 INTERNATIONAL WASHINGTON INSIGHT CLINTON TRIES QUIET DIPLOMACY IN EFFORT TO SETTLE CIVIL WARS ON RUSSIA'S BORDERS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH SEVERAL CIVIL WARS RAGING ON RUSSIA'S BORDERS AND MORE THREATENING TO EXPLODE THE CLINTON ADMINISTRATION HAS DECIDED TO TRY SOME QUIET DIPLOMACY IN THE NEXT FEW WEEKS THE ADMINISTRATION IS EXPECTED TO GIVE RUSSIAN POLICY COORDINATOR STROBE TALBOTT A NEW AIDE WHOSE FULLTIME JOB WILL BE TO TRY TO DEFUSE THESE CONFLICTS THE MISSION IS A SENSITIVE ONE WHILE THE ADMINISTRATION BELIEVES THAT RUSSIAN PRESIDENT BORIS YELTSIN ISN'T ACTIVELY AIDING AND ABETTING THESE CONFLICTS THERE'S NO DOUBT THAT TOP RUSSIAN MILITARY OFFICERS AS WELL AS NATIONALIST POLITICAL LEADERS ARE THE NEW US MEDIATOR WILL HAVE TO FIGURE OUT HOW TO HELP SETTLE THESE CONFLICTS WITHOUT WEAKENING MR YELTSIN OR STRENGTHENING HIS ULTRANATIONALIST ENEMIES WHAT WE ARE NOT TALKING ABOUT IS GETTING INVOLVED MILITARILY ONE SENIOR OFFICIAL SAYS FIRMLY ANYTHING DONE WILL BE VERY QUIET VERY SENSITIVE TO THE PASSIONS INVOLVED THE OFFICIAL SAYS BUT PAUL GOBLE A NATIONALITIES EXPERT AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE ARGUES THAT BY NOT PRESSING THE RUSSIAN LEADER HARDER TO RESTRAIN HIS MILITARY AND ULTRANATIONALIST FORCES THE US IS UNLIKELY TO SETTLE ANY OF THESE CONFLICTS OR FOR THAT MATTER TO HELP MR YELTSIN ALL THEY'RE DOING IS GIVING YELTSIN ONE MORE EXCUSE NOT TO STAND UP TO THE RIGHT WING SAYS MR GOBLE MR YELTSIN MEANWHILE HAS TO WORRY ABOUT CONTAINING SEPARATIST MOVEMENTS INSIDE RUSSIA TOO GEORGIAN PRESIDENT EDUARD SHEVARDNADZE RECENTLY WROTE AN IMPASSIONED LETTER TO PRESIDENT CLINTON PLEADING FOR HELP MR SHEVARDNADZE WHO SERVED AS MIKHAIL GORBACHEV'S FOREIGN MINISTER AND IS A LONGTIME FRIEND TO THE WEST IS BATTLING RUSSIANBACKED SEPARATISTS IN TWO DIFFERENT CIVIL WARS AND TRYING TO KEEP THE REINS ON A RESTIVE ULTRANATIONALIST MILITARY PRESIDENT CLINTON HAS DECIDED TO SEND GEORGIA 30 MILLION IN HUMANITARIAN ASSISTANCE OFFICIALS SAY AND THE US HAS QUIETLY DISCUSSED MR SHEVARDNADZE'S PLIGHT WITH MR YELTSIN WHO IN TURN HAS BEEN TRYING TO HELP BROKER SETTLEMENTS ON BOTH FRONTS ON SATURDAY THE GEORGIAN PARLIAMENT GAVE MR SHEVARDNADZE AUTHORITY TO ACCEPT A RUSSIANBROKERED PEACE AGREEMENT TO END THE CIVIL WAR IN THE BLACK SEA PROVINCE OF ABKHAZIA WHERE MORE THAN 2000 PEOPLE HAVE BEEN KILLED OVER THE PAST YEAR BUT US OFFICIALS AREN'T SURE WHETHER THE ACCORD WILL HOLD NOR ARE THEY CERTAIN ABOUT HOW MUCH CONTROL MR YELTSIN HAS OVER THE SITUATION IN GEORGIA OR OVER THE ESTIMATED 15000 RUSSIAN TROOPS STILL STATIONED THERE THE US ALSO RECEIVED A PLEA FOR HELP FROM AZERBAIJAN'S DEMOCRATICALLY ELECTED PRESIDENT EBULFEZ ELCIBEY BEFORE HE WAS OVERTHROWN LAST MONTH BY A FORMER LOCAL COMMUNIST BOSS WITH STRONG TIES TO THE RUSSIAN MILITARY MR ELCIBEY'S SINS INCLUDED A PROTURKISH ANTIRUSSIAN TILT AND A WILLINGNESS TO NEGOTIATE AN END TO THE BLOODY FIVEYEAR WAR WITH ARMENIA BEFORE HIS OVERTHROW A U S SPECIAL ENVOY HAD BEEN MAKING REAL PROGRESS TOWARD A PEACE SETTLEMENT NOW WE'RE ALMOST BACK TO SQUARE ONE SAYS THE SENIOR US OFFICIAL WITH CLEAR FRUSTRATION POTENTIALLY THE MOST DANGEROUS CONFLICT IS THE CIVIL WAR IN TAJIKISTAN WHERE RUSSIAN TROOPS ARE BACKING AN OLDSTYLE COMMUNIST GOVERNMENT IN ITS FIGHT AGAINST MUSLIM REBELS BACKED BY AFGHAN MUJAHEDDIN IN ONE CROSSBORDER ATTACK THIS MONTH TAJIK AND AFGHAN GUERRILLAS KILLED 25 RUSSIAN SOLDIERS STATIONED ALONG THE TAJIKISTANAFGHAN BORDER RUSSIAN MILITARY LEADERS ARE NOW WARNING THEY COULD LAUNCH THEIR OWN RAIDS INTO AFGHANISTAN EVEN WITH THE BEST US DIPLOMATIC EFFORTS THE SITUATION IN WHAT THE RUSSIANS CONDESCENDINGLY CALL THE NEAR ABROAD WILL REMAIN EXPLOSIVE AS LONG AS 25 MILLION ETHNIC RUSSIANS CONTINUE TO LIVE OUTSIDE RUSSIA'S BORDERS AND TENS OF THOUSANDS OF RUSSIAN TROOPS REMAIN STATIONED IN THE FORMER REPUBLICS MR GOBLE MEANWHILE WARNS THAT WASHINGTON'S CLEAR FOCUS ON RUSSIA COULD HELP PRODUCE A BACKLASH IN THE OTHER REPUBLICS AND INCREASE CHANCES FOR CONFLICT THESE COUNTRIES ARE FEELING ABANDONED BY THE US AND THAT TENDS TO RADICALIZE OPINION AND FOSTER EXTREMISM HE SAYS US OFFICIALS HOPE THEIR QUIET DIPLOMACY WILL EASE SOME OF THOSE FEARS AND PASSIONS 9307260122 930726 WHO'S NEWS KAZARIAN TO RENEW INVESTMENT EFFORTS WITH 160 MILLION BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON FORMER SUNBEAMOSTER CO CHAIRMAN PAUL B KAZARIAN SAID HE INTENDS TO USE 160 MILLION THE COMPANY PAID HIM TO GET BACK INTO CORPORATE INVESTING AND POSSIBLY TAKEOVERS MR KAZARIAN OUSTED BY SUNBEAM'S BOARD AT THE BEGINNING OF 1993 SETTLED LAWSUITS STEMMING FROM THE OUSTER LAST WEEK AND HAS ALREADY RECEIVED HIS SHARE OF THE SETTLEMENT ALTHOUGH MR KAZARIAN'S RESOURCES WOULD BE SMALL COMPARED WITH OTHER BUYOUT SPECIALISTS HE SAID HE HAS BEEN APPROACHED BY INSTITUTIONS INTERESTED IN BACKING HIM INCREASING THE SCALE OF ANY INVESTMENT HE MIGHT CONSIDER HE SAID HE ALREADY HAS DEVELOPED A LIST OF COMPANIES MAINLY CONSUMERPRODUCTS CONCERNS TO FOCUS ON BEFORE A FALLING OUT WITH HIS FORMER INSTITUTIONAL BACKERS NEW YORK MONEY MANAGERS MICHAEL PRICE AND MICHAEL STEINHARDT MR KAZARIAN HAD BEEN CONSIDERING AN INVESTMENT IN EASTMAN KODAK CO ACCORDING TO ONE PERSON WHO HAS WORKED FOR HIM MR KAZARIAN DECLINED TO COMMENT ON KODAK OR ANY OTHER COMPANY AS A POTENTIAL INVESTMENT IN AN INTERVIEW MR KAZARIAN SAID HE WOULD USE HIS JAPONICA INVESTMENT PARTNERSHIP AS A VEHICLE FOR INVESTMENTS IT WAS THROUGH JAPONICA THAT MR KAZARIAN GOT THE BACKING OF MAJOR INSTITUTIONS TO ACQUIRE SUNBEAM AND BRING IT OUT OF BANKRUPTCYLAW PROCEEDINGS SOME MAJOR INVESTORS HAVE OFFERED TO INVEST 25 MILLION TO 50 MILLION APIECE IN AN INVESTMENT OR BUYOUT FUND THAT HE WOULD MANAGE OR TO BACK IN ANY INVESTMENTS HE MIGHT MAKE MR KAZARIAN SAID WE'RE GETTING A LOT OF INTEREST THAT SPANS THE GAMUT THE US AND INTERNATIONAL MR KAZARIAN SAID THERE ARE PEOPLE OUT THERE WHO HAVE A COMPANY AND WANT YOU TO TAKE A LOOK AT THE COMPANY THEY SEE SIMILAR OPPORTUNITIES TO THOSE AT SUNBEAM HE SAID YOU KNOW YOU HAVE A LOT OF COMPANIES THAT ARE DECLINING UNDER THE SETTLEMENT WITH SUNBEAM THE COMPANY REPURCHASED 124 MILLION SHARES OF ITS OWN STOCK HELD BY A PARTNERSHIP IN WHICH JAPONICA HAD A MAJOR INTEREST PEOPLE FAMILIAR WITH THE AGREEMENT SAY MR KAZARIAN WILL RECEIVE ABOUT 90 OF THE PROCEEDS OF THE 14ASHARE REPURCHASE AND 39 MILLION IN SEVERANCE THE SETTLEMENT AND BUYBACK HAD A TONIC EFFECT ON SUNBEAM'S STOCK FRIDAY LIFTING IT 2625 TO 18375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR KAZARIAN DISCLOSED THAT AS PART OF THE AGREEMENT HE HAS TO STEER CLEAR OF ANY INVOLVEMENT IN SUNBEAM INCLUDING PURCHASING ITS SECURITIES FOR 10 YEARS UNTIL THE SETTLEMENT JAPONICA HELD A KEY INTEREST IN ANOTHER PARTNERSHIP SUNBEAMOSTER EQUITIES LP WHICH CONTROLS SUNBEAMOSTER THE COMPANY PURCHASED THE SHARES FROM THE SUNBEAMOSTER PARTNERSHIP WHICH IS LEFT WITH A 70 STAKE IN SUNBEAMOSTER EVENLY DIVIDED BETWEEN THE MUTUAL SERIES FUNDS MANAGED BY MR PRICE AND MR STEINHARDT'S HEDGE FUNDS MR KAZARIAN SAID THAT HE HASN'T DECIDED ON TACTICS YET BUT THAT IT'S LIKELY THAT BEFORE THE END OF 1993 A GROUP THAT INCLUDES HIM WILL DISCLOSE AN INVESTMENT INTEREST IN A MAJOR COMPANY ONE POTENTIAL OBSTACLE TO ANY HOSTILE TAKEOVER PLANS BY MR KAZARIAN WOULD BE THE LIKELIHOOD THAT MANAGEMENT WOULD USE THE SUNBEAM OUSTER AGAINST HIM SUNBEAM INSIDERS HAVE SAID THAT HE WAS FIRED FOR ERRATIC BEHAVIOR INCLUDING HARSH TREATMENT OF EMPLOYEES A CHARGE THAT MR KAZARIAN HAS STRENUOUSLY DENIED 9307260121 930726 WORLD MARKETS TOKYO STOCKS FALL 19 ON ANXIETY ABOUT YEN POLITICS LONDON SHARES RISE ON STABILITY VOTE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES DIVED 19 FRIDAY IN LIGHT TRADING WITH LOSSES ACROSS THE BOARD AS THE YEN STRENGTHENED AND INVESTORS WHO WERE WORRIED ABOUT JAPAN'S ROILED POLITICS SOLD POSITIONS AHEAD OF THE WEEKEND LONDON SHARES ROSE AS INVESTORS WERE OPTIMISTIC THAT BRITISH PRIME MINISTER JOHN MAJOR WOULD SURVIVE A CONFIDENCE VOTE IN PARLIAMENT AS HE DID EASILY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10616 DOWN 093 REFLECTING AN INCREASE IN MARKETS IN THE AMERICAS AND DROPS IN EUROPEAN AND ASIAPACIFIC MARKETS HEALTHCARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11012 UP 240 OR 223 WITH MANOR CARE OF THE US POSTING A 753 GAIN IN ITS LOCAL CURRENCY CONSUMER ELECTRONICS STOCKS TRAILED AT 11180 DOWN 324 OR 282 WITH MATSUSHITA KOTOBUKI ELECTRONICS OF JAPAN SLIDING 392 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 3990 POINTS THURSDAY TUMBLED 38124 TO 1973457 JUST FRACTIONALLY ABOVE THE INTRADAY LOW OF 1973377 AND ITS FIRST CLOSE BELOW 20000 SINCE JULY 12 ON MONDAY THE NIKKEI ROSE 5491 POINTS TO CLOSE THE MORNING SESSION AT 1978948 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES DOWN FROM 2364 MILLION SHARES A DAY EARLIER LOSERS SWAMPED GAINERS 90099 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 203 POINTS THURSDAY SANK 2496 OR 15 TO 160933 THE NIKKEI LOGGED ITS SESSION HIGH OF 2004980 AT THE OPENING AND SOON FELL THROUGH 20000 AS BUYING SUPPORT FROM EARLIER IN THE WEEK EVAPORATED SENTIMENT FESTERED AS THE JAPANESE YEN STRENGTHENED AGAINST THE US DOLLAR AND JAPANESE NEWS REPORTS SAID POLITICAL OPPOSITION PARTIES WERE LIKELY TO MUSTER ENOUGH VOTES TO ELECT JAPAN'S NEW PRIME MINISTER THEMSELVES THE DEVELOPMENTS PROMPTED SHARE PRICES TO SKID 14 IN THE FIRST 20 MINUTES OF TRADING THEN WAFFLE AT LOWER LEVELS FOR THE REST OF THE DAY SELLING CAME MOSTLY FROM ARBITRAGERS AND DEALERS BUT THE THIN TURNOVER EXAGGERATED INDEX MOVEMENTS BLUECHIP EXPORTERS WERE AMONG THE HARDEST HIT BUT SOME FINANCIAL AND ELECTRICPOWER CONCERNS HELD UP WELL GIVEN THE STRONG YEN INSTITUTIONAL INVESTORS STAYED OUT OF THE MARKET ON THE JUDGMENT THAT PRICES WERE STILL TOO HIGH THOUGH IF THE UNSETTLED JAPANESE POLITICAL AND CURRENCY SITUATIONS CONTINUE TO WEIGH ON THE MARKET THIS WEEK BIG PLAYERS COULD LOOK FOR BARGAINS TO BUY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 76 POINTS TO 28277 THE FT 30STOCK INDEX CLIMBED 83 POINTS TO 22346 VOLUME WAS 5395 MILLION SHARES COMPARED WITH 5824 MILLION SHARES A DAY EARLIER AFTER WALL STREET STOCKS DROPPED SHARPLY THURSDAY AS CONSERVATIVE PRIME MINISTER MAJOR LOST A PARLIAMENTARY VOTE ON THE EUROPEAN COMMUNITY UNITY TREATY THE FT 100 ON FRIDAY OPENED SHARPLY LOWER FALLING 189 POINTS TO THE INTRADAY LOW OF 28012 BUT INSTITUTIONS DIDN'T SELL POSITIONS AND THE MARKET SOON FOLLOWED THE FUTURES MARKET HIGHER STOCKS' REBOUND PARTLY REFLECTED BROAD SENTIMENT THAT WHILE THURSDAY'S VOTE DAMAGED MR MAJOR'S CREDIBILITY A BIT HE WASN'T LIKELY TO LOSE THE CONFIDENCE VOTE THE PRIME MINISTER ON LOSING THE EC TREATY SKIRMISH THURSDAY CALLED FOR THE VOTE OF CONFIDENCE IN THE GOVERNMENT RISKING A GENERAL ELECTION IF DEFEATED ON THAT TALLY BUT CALCULATING THAT FEW TORY MEMBERS OF PARLIAMENT WOULD RISK THEIR OWN SEATS TO UNSEAT HIM INDEED THE CONSERVATIVES WON THE CONFIDENCE VOTE THE MARKET ALSO GAINED SUPPORT FROM COMMENTS BY A NOMURA RESEARCH INSTITUTE ANALYST WHO PREDICTED STRONGER CORPORATE EARNINGS AND A BRITISH INTERESTRATE CUT LATER THIS YEAR MEANWHILE SECONDQUARTER GROWTH OF BRITAIN'S GROSS DOMESTIC PRODUCT MET EXPECTATIONS IN FRANKFURT SHARE PRICES CLOSED HIGHER PUSHED UP BY SOME SHORTCOVERING AND LARGE GAINS FOR A FEW BLUECHIP STOCKS IN CALM TRADING THE DAX 30STOCK INDEX ROSE 730 POINTS TO 183083 FOR THE WEEK THE INDEX GAINED 1736 POINTS OR 1 AS SELL ORDERS FAILED TO MATERIALIZE IN FRANKFURT INVESTORS BOUGHT TO COVER SHORT SALES IN WHICH BORROWED STOCK IS SOLD ON A BET THE MARKET WILL DECLINE ALLOWING A PROFIT BY BUYING SHARES TO REPLACE THE BORROWED STOCK AT A LOWER PRICE PARTICIPANTS WERE DIVIDED ABOUT THE EFFECT OF UNSTABLE EUROPEAN CURRENCY MARKETS WHEN THE GERMAN CENTRAL BANK THIS WEEK CONSIDERS LOWERING INTEREST RATES SOME ANALYSTS SAW IMPROVED CHANCES FOR A RATE CUT AFTER THE BUNDESBANK ISSUED STATEMENTS FRIDAY IN SUPPORT OF THE FRENCH FRANC AND PLEDGED CONTINUING SUPPORT FOR THE EMBATTLED CURRENCY BUT OTHERS VIEWED BUNDESBANK EFFORTS TO SUPPORT THE FRANC AS HAVING POTENTIAL INFLATIONARY TENDENCIES PRECLUDING A RATE CUT UNTIL AFTER THE CENTRAL BANK'S SUMMER BREAK IN PARIS STOCKS RALLIED 15 AS FEARS OF A FRENCH FRANC DEVALUATION CONTINUED TO MOUNT AND US AND OTHER FOREIGN INVESTORS AGAIN FLOCKED TO BLUE CHIPS IN THE FINAL TWO HOURS OF TRADING BUYERS HOPED THAT A FRANC DEVALUATION WOULD IGNITE THE STOCK MARKET MAKE FRENCH COMPANIES MORE COMPETITIVE IN EUROPE AND GIVE FRANCE ROOM TO CUT INTEREST RATES EVEN IF THE FRANC ISN'T DEVALUED SENTIMENT BULLISH FOR EQUITIES GREW THAT GERMANY MUST LOWER ITS RATES TO SOOTHE EUROPEAN CURRENCYMARKET TENSIONS AMSTERDAM STOCKS ENDED MOSTLY HIGHER THOUGH CONSUMERPRODUCTS AND CHEMICAL SHARES FELL AND THE MARKET'S MAIN INDEXES WERE FLAT TO LOWER BUFFETED BY CROSSCURRENTS OF A HIGHER DOLLAR A SHARP UPWARD REVISION OF DUTCH FIRSTQUARTER ECONOMIC DATA AND INDICATIONS BY A TOP GERMAN MONETARY OFFICIAL THAT THE GERMAN BUNDESBANK MIGHT BE RELUCTANT TO EASE INTEREST RATES SOON IN MILAN STOCKS WERE MIXED AND VOLUME DROPPED AS INVESTORS WERE SHOCKED BY THE SUICIDE OF A FORMER ITALIAN BUSINESS EXECUTIVE THE SECOND SUCH RECENT DEATH LINKED TO A CORRUPTION SCANDAL IN MADRID PRICES GAINED AS INVESTORS MONITORED THE SPANISH PESETA'S PERFORMANCE IN CURRENCY MARKETS WHERE IT WAS STABLE FOR MOST OF THE SESSION THOUGH ANXIETY ABOUT POTENTIAL FOREIGNEXCHANGE TURMOIL PREOCCUPIED TRADERS STOCKHOLM SHARES RALLIED AFTER A WEAK OPENING WITH LOWER SWEDISH INTEREST RATES AND A FIRM DOLLAR SUPPORTING THE RECOVERY SPECULATION AGAINST THE FRENCH FRANC TENDED TO SHIFT ATTENTION FROM OTHER CURRENCIES AND THE SWEDISH KRONA REMAINED STABLE ALLOWING DOMESTIC RATES TO FALL IN ZURICH STOCKS ROSE MODERATELY AS FOREIGN INVESTORS ESCAPING TENSIONS IN EUROPEAN FOREIGNEXCHANGE DEALINGS SANK CASH INTO SWISS BLUE CHIPS IN SYDNEY SPECULATION ABOUT A CUT SOON IN AUSTRALIAN INTEREST RATES PUSHED SHARE PRICES UP HONG KONG SHARES ENDED DOWN SLIGHTLY THOUGH THEY LARGELY REBOUNDED FROM LOWS ON RUMORS OF HEALTH PROBLEMS FOR CHINA'S PATRIARCH DENG XIAOPING AND OF A TOP LEADERSHIP SHUFFLE IN BEIJING TAIPEI PRICES ROSE ENCOURAGED BY A SURGE IN THE US DOLLAR AGAINST THE NEW TAIWAN DOLLAR WHICH COULD HELP TAIWAN'S EXPORTS MANILA SHARES ADVANCED IN ACTIVE TRADING SUPPORTED BY CONTINUED BUYING OF BLUE CHIPS 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 9307260120 930726 INTERNATIONAL POLAND TO SELL 2 FACTORIES IN MAJOR 93 PRIVATIZATION WARSAW POLAND POLAND'S MINISTRY OF PRIVATIZATION ANNOUNCED THE SALE OF CONTROLLING INTERESTS IN TWO CEMENT FACTORIES TO CBR CIMENTERIES SA OF BELGIUM IN WHAT WILL BE POLAND'S LARGEST PRIVATIZATION YET THIS YEAR CBR A GENERALE DE BELGIQUE SA UNIT WILL PAY 904 MILLION MARKS 53 MILLION FOR 30 OF ZAKLADY CEMENTOWOWAPIENNICZE GORAZDZE SA A CEMENT AND LIME MANUFACTURER AND 42 OF CEMENTOWNIA STRZELCE OPOLSKIE SA A CEMENT PLANT THE TRANSACTION FOLLOWS THE SIX MILLION MARK SALE OF 80 OF ANOTHER POLISH CEMENT PLANT CEMENTOWNIA ODRA SA TO GERMANY'S MIEBACH PROJEKT GMBH A WEEK EARLIER CBR A CEMENT CONCRETE AND AGGREGATES PRODUCER IN BRUSSELS WITH 1992 WORLDWIDE SALES OF NEARLY 15 BILLION OWNS SIXTEEN PLANTS IN EUROPE AND NORTH AMERICA WITH TOTAL PRODUCTION CAPACITY OF 134 MILLION METRIC TONS THE POLISH DEAL IS CBR'S SECOND MOVE INTO CENTRAL EUROPE FOLLOWING ITS PURCHASE LAST YEAR OF A STAKE IN THE CZECH MOKRA CEMENT PLANT 9307260119 930726 OCCIDENTAL UNIT'S REDEMPTION LOS ANGELES OCCIDENTAL PETROLEUM CORP SAID ITS OXY OIL & GAS USA INC SUBSIDIARY WILL REDEEM ITS 332 MILLION PRINCIPAL AMOUNT OUTSTANDING OF 765 DEBENTURES DUE 2001 AND 383 MILLION OUTSTANDING OF 9 3/4 SINKING FUND DEBENTURES DUE 2000 THE 765 DEBENTURES WILL BE REDEEMED ON AUG 23 AT 10092 OF THEIR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE 9 3/4 SINKING FUND DEBENTURES WILL BE REDEEMED OCT 1 WITH 20 MILLION OF THE REDEMPTION THROUGH MANDATORY AND OPTIONAL SINKING FUND PAYMENTS AT PAR AND THE BALANCE OF 183 MILLION AT 10098 MORGAN GUARANTEE TRUST CO OF NEW YORK IS THE TRUSTEE 9307260118 930726 TEXACO UNIT SLATES CUTBACK THE COMPANY SAID THE JOBS BEING TERMINATED ARE THOSE INVOLVED IN MAKING ETHYLENEAMINE A CHEMICAL USED IN LUBRICANT ADDITIVES TEXTILE TREATMENT CHEMICALS AND AGRICULTURAL PRODUCTS TEXACO SAID THE MOVE IS AIMED AT IMPROVING PROFITABILITY AMONG OTHER THINGS TEXACO INC IS A PETROLEUM COMPANY BASED IN WHITE PLAINS NY 9307260117 930726 BOARD OF CONTRIBUTORS CLINTON'S BUDGET WHAT'S THE THEORY BY HERBERT STEIN ON WHAT THEEORY HENRY KISSINGER CRIED OUT WHEN THE REFEREE CALLED A PENALTY AGAINST THE REDSKINS AT RFK STADIUM I AM TEMPTED TO MAKE THE SAME CRY WHEN I SEE IN THE PAPERS THAT THE ADMINISTRATION IS PREPARING A CAMPAIGN TO SELL ITS BUDGET PACKAGE TO THE AMERICAN PEOPLE THE ADMINISTRATION BELIEVES THAT ITS BUDGET PACKAGE HAS BEEN MISREPORTED AND MISUNDERSTOOD SO ITS SPOKESPEOPLE ARE GOING TO GET ON THE TRAIL AND ON THE AIRWAVES TO PERSUADE PEOPLE THAT THE PROGRAM WILL REALLY REDUCE THE BUDGET DEFICIT REALLY IMPOSE TAXES ALMOST ENTIRELY ON THE RICH AND REALLY CUT SPENDING I AM WILLING TO CONCEDE ALL THESE CLAIMS BUT FOR ME AT LEAST THEY DON'T GET ANYWHERE NEAR WHERE THE TROUBLE IS TO QUOTE ADELAIDE IN GUYS AND DOLLS THE TROUBLE IS A FAILURE TO EXPLAIN WHAT GOOD THIS DEFICIT CUT THIS PROGRESSIVE TAX INCREASE AND THESE EXPENDITURE CUTS WILL DO FOR THE AMERICAN PEOPLE AND ESPECIALLY HOW THEY WILL PRODUCE THE PROMISED JOBS JOBS JOBS IN SHORT THERE IS NO THEORY UNDOUBTEDLY THERE COULD BE A THEORY ECONOMISTS ARE GOOD AT THAT PROBABLY THERE ARE FIVE YOUNG ECONOMISTS ON THE STAFF OF THE COUNCIL OF ECONOMIC ADVISERS WHO IF GIVEN THE ASSIGNMENT COULD PRODUCE A THEORY TO EXPLAIN HOW THE BUDGET PACKAGE NOT ONLY WILL CREATE JOBS BUT WILL CREATE EIGHT MILLION JOBS THEY ALSO COULD ADDUCE STATISTICAL EVIDENCE IN SUPPORT OF THE THEORY PERHAPS THE PAPER DOING ALL THAT NOW LIES ON SOMEONE'S DESK ON THE THIRD FLOOR OF THE OLD EXECUTIVE OFFICE BUILDING NEXT TO THE WHITE HOUSE BUT THEY HAVE NOT REVEALED THE THEORY OR THE EVIDENCE TO THE PUBLIC YOU SEE THE ARGUMENT THAT RAISING TAXES AND CUTTING SPENDING WILL CREATE JOBS IS COUNTERTHETEXTBOOK AND BY NOW ALMOST 60 YEARS AFTER KEYNES COUNTERINTUITIVE WE TEACH OUR SOPHOMORES THAT REDUCING GOVERNMENT EXPENDITURES CUTS DEMAND FOR GOODS AND SERVICES AND THAT RAISING TAXES CUTS PRIVATE AFTERTAX INCOME AND SO CUTS PRIVATE DEMAND FOR GOODS AND SERVICES THE CUT IN DEMAND REDUCES EMPLOYMENT WE TEACH OUR JUNIORS WHO TAKE MACROECONOMICS COURSES THAT WHILE CUTTING THE BUDGET DEFICIT WILL PROBABLY REDUCE EMPLOYMENT IT MIGHT NOT DO SO REDUCTION OF THE BUDGET DEFICIT WILL LOWER INTEREST RATES WHICH WILL STIMULATE INVESTMENT DEMAND AND SO OFFSET IN PART THE DECLINES IN DEMAND RESULTING FROM INCREASED TAXES AND LOWER GOVERNMENT SPENDING THIS OFFSET IS UNLIKELY TO BE COMPLETE BECAUSE A DECLINE IN INTEREST RATES WILL INCREASE THE DESIRE TO HOLD MONEY UNLESS THE FEDERAL RESERVE SUPPLIES MORE MONEY THE SHORTAGE OF MONEY WILL KEEP INTEREST RATES FROM FALLING ENOUGH TO OFFSET THE DIRECT CONTRACTIONARY EFFECTS OF TAX INCREASES AND EXPENDITURE CUTS IN ITS LIMITED EFFORTS TO EXPLAIN ITS BUDGET PACKAGE SO FAR THE ADMINISTRATION HAS RELIED UPON THE PLAN'S EFFECT IN REDUCING INTEREST RATES AND SO STIMULATING INVESTMENT DEMAND BUT THAT IS OF COURSE ONLY ONE SIDE OF THE STORY AND WE HAVE BEEN OFFERED NO REASON FOR THINKING THAT THE POSITIVE EFFECT OF REDUCING INTEREST RATES WILL BE SUFFICIENT TO OFFSET THE NEGATIVE EFFECTS OF HIGHER TAXES AND LOWER EXPENDITURES AS I HAVE SAID THEORIES ARE IMAGINABLE THAT WOULD EXPLAIN HOW THE BUDGET PACKAGE WILL CREATE JOBS AND I CAN THINK OF A FEW THE ADMINISTRATION'S PLAN INCLUDES SOME TARGETED INCENTIVES FOR INVESTMENT IN SMALL BUSINESS FOR EXAMPLE THAT WILL INCREASE THE DEMAND FOR OUTPUT IF SUFFICIENTLY POWERFUL THE EFFECT OF THIS COULD OFFSET THE COMBINED EFFECTS OF THE EXPENDITURE CUTS THE REDUCTION OF AFTERTAX INCOMES BY THE TAX INCREASES AND THE NEGATIVE INCENTIVES FOR INVESTMENT GENERATED BY THE BOOSTS IN CORPORATE AND INDIVIDUAL INCOMETAX RATES THIS SEEMS IMPLAUSIBLE TO ME BUT ECONOMETRICIANS MIGHT BE ABLE TO TEST IT RECOVERY HAS BEEN SLOW SO FAR BECAUSE LONGTERM INTEREST RATES HAVE NOT FALLEN ENOUGH TO BOOST INVESTMENT VERY MUCH INTEREST RATES HAVE NOT FALLEN MORE BECAUSE THERE IS AN EXPECTATION THAT WHEN THE ECONOMY RECOVERS THE DEFICIT WILL STILL BE VERY LARGE AND INTEREST RATES WILL THEN RISE PEOPLE ARE RELUCTANT TO BUY LONGTERM ASSETS NOW IF THEY THINK THAT A RISE OF INTEREST RATES AND FALL OF ASSET PRICES IS COMING ENACTMENT OF A CREDIBLE DEFICIT REDUCTION PACKAGE WILL ALLAY THE FEAR OF FUTURE INTERESTRATE INCREASES AND PERMIT A DECLINE OF INTEREST RATES NOW WHICH WILL STIMULATE INVESTMENT NOW THIS LEAVES OPEN THE QUESTION OF WHETHER THE PROSPECT OF HIGHER TAXES AND LOWER GOVERNMENT EXPENDITURES IN THE FUTURE WILL DIM THE OUTLOOK FOR RECOVERY AND THEREBY DEPRESS INVESTMENT NOW THE PROSPECT OF DEFICIT REDUCTION WILL WARM THE COLD HEART OF THE FEDERAL RESERVE AND ENCOURAGE IT TO EXPAND THE MONEY SUPPLY MORE RAPIDLY THUS STIMULATING DEMAND AND BOOSTING EMPLOYMENT THIS ASSUMES THAT WE KNOW SOMETHING ABOUT THE HEARTBEAT OF THE FEDERAL RESERVE THE LEVEL OF EMPLOYMENT WILL DEPEND ON THE RELATION BETWEEN THE REAL PRODUCTIVITY OF LABOR AND THE REAL WAGES THAT WORKERS REQUIRE TO GET THEM TO ACCEPT EMPLOYMENT THE BUDGET PACKAGE WILL INCREASE THE RATE OF GROWTH OF PRODUCTIVITY REDUCING THE BUDGET DEFICIT WILL INCREASE THE SUPPLY OF SAVINGS AVAILABLE FOR PRIVATE INVESTMENT AT ANY LEVEL OF NATIONAL OUTPUT IN THAT WAY IT WILL INCREASE THE PRODUCTIVITY OF LABOR RAISE THE WAGES THAT EMPLOYERS CAN OFFER AND INDUCE MORE WORKERS TO ACCEPT EMPLOYMENT THIS IT SEEMS TO ME WOULD BE A PECULIAR ARGUMENT FOR THE CLINTON ADMINISTRATION TO MAKE BUT THERE IS PROBABLY SOMETHING IN IT ALTHOUGH HOW MUCH AND HOW FAST IS UNCLEAR THERE MAY BE OTHER AND BETTER THEORIES TO EXPLAIN HOW THE CLINTON BUDGET PACKAGE WOULD CREATE JOBS BUT I AM SURE THAT THEY WOULD BE AS COMPLEX AND UNCERTAIN AS THOSE I HAVE SUGGESTED REPUBLICANS CANNOT TAKE MUCH COMFORT FROM WHAT I BELIEVE TO BE THE DIFFICULTY OF EXPLAINING HOW THE ADMINISTRATION'S PROGRAM WOULD INCREASE JOBS THE REPUBLICANS OR AT LEAST MOST OF THEM MOST OF THE TIME CLAIM TO BE AS DEVOTED TO REDUCING THE BUDGET DEFICIT AS MR CLINTON IS INDEED THEY USUALLY SAY THAT THE CLINTON PLAN WOULD NOT ACTUALLY REDUCE THE DEFICIT WHILE THEIRS WOULD SO THEY CANNOT MAKE THE ARGUMENT THAT DEFICITREDUCTION IS PER SE DEPRESSING ALSO THIS IS A KEYNESIAN ARGUMENT AND EVEN THOUGH RICHARD NIXON DECLARED HIMSELF A KEYNESIAN AS LONG AGO AS 1971 REPUBLICANS GENERALLY STILL REGARD KEYNESIANISM AS A KIND OF PERVERSION AS FOR THE ARGUMENT THAT THE PREFERRED GOP WAY OF REDUCING THE DEFICIT IS MORE STIMULATIVE THAN THE DEMOCRATIC WAY IT WOULD TAKE SOME PRETTY FANCY FOOTWORK TO DEMONSTRATE THAT PROBABLY BOTH THE DEMOCRATS AND THE REPUBLICANS ARE WISE TO AVOID THEORY AND STICK TO REITERATION OF WORDS LIKE TAX AND SPEND JOBS AND CHANGE THE NUMBER OF PEOPLE WHO WOULD LIKE TO HEAR SOME RATIONAL DEBATE IS SMALL BUT WE ARE AT A MOMENT WHEN ALL KINDS OF SPECIAL INTERESTS ARE BEING SERVED AND SOMEONE OUGHT TO SAY A WORD FOR THE SPECIAL INTEREST IN THEORY AND EVIDENCE DESPITE WHAT I HAVE SAID I AM IN FAVOR OF THE BUDGET PACKAGE I FEEL ABOUT SUBSTANTIAL DEFICIT REDUCTION THE WAY I FELT ABOUT SENDING A MAN TO THE MOON I DIDN'T SEE ANY GREAT GAIN FROM DOING IT BUT ONCE IT BECAME AN AGREEDUPON NATIONAL OBJECTIVE I THOUGHT ITS SUCCESS WAS IMPORTANT IT IS GOOD FOR THE COUNTRY FOR ITS MORALE AND FEELING OF COMPETENCE TO BE ABLE TO ACCOMPLISH SOME BIG DIFFICULT TASK IT HAS SET FOR ITSELF AS LONG AS THE TASK IS NOT TOO FOOLISH THE COUNTRY DEMOCRATS REPUBLICANS AND PEROTISTAS SEEMS TO HAVE AGREED THAT SUBSTANTIAL DEFICIT REDUCTION IS A VERY HIGH PRIORITY WE SHOULD JUST DO IT AND SINCE THE COUNTRY HAS ELECTED A DEMOCRATIC PRESIDENT A DEMOCRATIC HOUSE AND A DEMOCRATIC SENATE THE ONLY WAY TO DO IT IS THE DEMOCRATIC WAY A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW 9307260116 930726 UDC BOARD CLEARS STOCK SWAP TEMPE ARIZ UDC HOMES INC SAID ITS BOARD APPROVED A SWAP OF COMMON STOCK FOR ITS PRIME PREFERRED EXCHANGEABLE STOCK THE OFFER WOULD GIVE THE PREFERRED HOLDERS THE RIGHT TO EXCHANGE EACH OF THEIR SHARES FOR 175 UDC COMMON SHARES GIVING THE OFFER A VALUE OF LESS THAN 12 A SHARE WHICH IS THE PREFERRED'S CASH REDEMPTION PRICE UDC SAID A SHAREHOLDER MEETING WILL BE HELD SOMETIME DURING THE QUARTER TO APPROVE THE ISSUANCE OF SHARES OF COMMON STOCK 9307260115 930726 SALLIE MAE BUYBACK PLAN WASHINGTON STUDENT LOAN MARKETING ASSOCIATION DIRECTORS VOTED TO INCREASE THE COMPANY'S COMMON STOCK BUYBACK AUTHORIZATION TO FIVE MILLION SHARES FROM FOUR MILLION THE COMPANY HAS REPURCHASED ABOUT 35 MILLION SHARES SINCE BEGINNING ITS BUYBACK PROGRAM IN 1986 INCLUDING 28 MILLION IN THE FIRST HALF OF 1993 AS OF JUNE 30 SALLIE MAE A PURCHASER OF STUDENT LOANS HAD 867 MILLION COMMON SHARES OUTSTANDING 9307260114 930726 INTERNATIONAL HONG KONG'S WAGE INDEXES RISE HONG KONG HONG KONG'S INDEX OF REAL WAGES ROSE 32 IN MARCH FROM THE YEAREARLIER MONTH WHILE THE INDEX OF NOMINAL WAGES JUMPED 11 THE GOVERNMENT SAID THE FIGURES ARE RELEASED TWICE A YEAR A NEW SURVEY DESIGN WAS ADOPTED IN MARCH WITH CHANGES MADE TO THE INDUSTRY AND OCCUPATION COVERAGE THE BASE PERIOD OF THE WAGE INDEXES PREVIOUSLY TAKEN AS MARCH 1982 WAS CHANGED TO SEPTEMBER 1992 9307260113 930726 INTERNATIONAL SPANISH BUDGET DEFICIT MADRID SPAIN'S BUDGET DEFICIT ON A CASH BASIS WIDENED 46 TO AN ACCUMULATED 180 TRILLION PESETAS 1343 BILLION IN THE FIRST SIX MONTHS OF 1993 FROM THE SAME PERIOD IN 1992 THE FINANCE MINISTRY SAID THE MINISTRY DIDN'T PROVIDE A YEAREARLIER FIGURE IN JUNE THE BUDGET DEFICIT SWELLED 232 TO 4301 BILLION PESETAS FROM 1297 BILLION IN JUNE 1992 THE MINISTRY SAID 9307260112 930726 WHO'S NEWS DIED FRANCIS BOUYGUES 70 FOUNDER OF BOUYGUES SA SATURDAY NEAR ST MALO FRANCE OF A HEART ATTACK HENRY L JAMIESON 81 CHAIRMAN OF THE FRANKLIN GROUP OF FUNDS TUESDAY IN MENLO PARK CALIF OF CANCER 9307260111 930726 INTERNATIONAL CHILE'S FOREIGN DEBT RISES SANTIAGO CHILE'S FOREIGN DEBT STOOD AT 1904 BILLION BY THE END OF MAY UP FROM 1892 BILLION IN APRIL AND UP FROM 182 BILLION AT THE END OF 1992 THE CENTRAL BANK SAID ACCORDING TO THE FIGURES ISSUED BY THE BANK MAY WAS THE SECOND MONTH SINCE 1987 IN WHICH THE DEBT SURPASSED 19 BILLION IN MARCH IT REACHED 1912 BILLION CHILE HAS NO ARREARS IN THE SERVICE OF EITHER THE PRINCIPAL OR THE INTEREST ON THE DEBT ACCORDING TO THE GOVERNMENT 9307260110 930726 WACHOVIA BOARD BOOSTS BUYBACK WINSTON SALEM NC WACHOVIA CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS FIVE MILLION SHARES OF COMMON STOCK AN INCREASE OF TWO MILLION SHARES OVER A PREVIOUS AUTHORIZATION THE BANK HAD ABOUT 1735 MILLION COMMON SHARES OUTSTANDING AS OF JUNE 30 WACHOVIA SAID IT INTENDS TO USE SOME OR ALL OF THE SHARES REPURCHASED FOR ITS EMPLOYEE STOCK PLANS AND ITS DIVIDEND REINVESTMENT PLAN AMONG OTHER THINGS THE COMPANY ALSO SAID ITS BOARD DECLARED A REGULAR QUARTERLY DIVIDEND OF 27 CENTS A SHARE PAYABLE SEPT 1 TO SHAREHOLDERS OF RECORD ON AUG 9 9307260109 930726 WHO'S NEWS SPANAMERICA MEDICAL SYSTEMS INC SPANAMERICA MEDICAL SYSTEMS INC GREENVILLE SC DONALD C SPANN 58 YEARS OLD IS RETIRING AS CHIEF EXECUTIVE OFFICER OF THIS MAKER OF HEALTHCARE AND PACKAGING PRODUCTS MR SPANN WHO FOUNDED THE COMPANY 19 YEARS AGO SAID HE PLANS TO PURSUE OTHER BUSINESS OPPORTUNITIES CHARLES B MITCHELL THE 56YEAROLD COMPANY PRESIDENT WILL SERVE AS INTERIM CHIEF EXECUTIVE WHILE THE COMPANY SEARCHES FOR A SUCCESSOR TO MR SPANN MR SPANN WILL REMAIN CHAIRMAN UNTIL A SUCCESSOR IS FOUND 9307260108 930726 SOUTH KOREA TO END CURBS ON SHIPBUILDING BEGINNING NEXT YEAR SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA'S MINISTRY OF INDUSTRY TRADE AND ENERGY SAID THAT BEGINNING NEXT YEAR IT WILL ALLOW DOMESTIC SHIPBUILDERS TO DECIDE FOR THEMSELVES WHETHER TO EXPAND THEIR CAPACITY WHICH IS NOW FROZEN UNDER A RATIONALIZATION PROGRAM BY THE GOVERNMENT THE GOVERNMENT HAS NO INTENTION OF EXTENDING THE CURRENT RATIONALIZATION PROGRAM LIMITING NEW ENTRANTS AND CAPACITY EXPANSION WHICH EXPIRES AT THE END OF THIS YEAR SAID A MINISTRY OFFICIAL RESPONSIBLE FOR DOMESTIC SHIPBUILDING AFFAIRS THE GOVERNMENT WILL LET SHIPBUILDERS EXPAND CAPACITY BASED ON THEIR OWN DECISIONS HE ADDED THE RATIONALIZATION PROGRAM WAS IMPOSED IN 1989 BY THE GOVERNMENT THEN FEARING REDUNDANT INVESTMENTS THE GOVERNMENT DECISION ALLOWING THE SHIPBUILDERS GREATER SELFCONTROL FOLLOWED A JOINT PROPOSAL TO THE MINISTRY BY THREE OF THE NATION'S MAJOR SHIPBUILDERS THAT URGED SAMSUNG HEAVY INDUSTRIES' PLAN TO EXPAND ITS SHIPBUILDING CAPACITY BY ONE MILLION TONS SHOULD BE ABOLISHED HYUNDAI HEAVY INDUSTRIES CO DAEWOO SHIPBUILDING & HEAVY INDUSTRIES AND HANJIN HEAVY INDUSTRIES ARE THE THREE COMPANIES INVOLVED IN THE CONTROVERSY WITH SAMSUNG HEAVY INDUSTRIES A UNIT OF THE SAMSUNG GROUP THE NATION'S COMBINED SHIPBUILDING CAPACITY IS CURRENTLY ESTIMATED AT 45 MILLION TONS A YEAR THE THREE COMPANIES ASSERT THAT INCREASED CAPACITY UNDER THE CURRENT MARKET SITUATION WILL RESULT IN A GLUT TRIGGERING AN EXCESSIVE COMPETITION AMONG DOMESTIC COMPANIES AN EXPANSION OF SHIPBUILDING CAPACITY AT A TIME LIKE THIS WHEN A VIRTUAL RECOVERY IN THE ORDER OF SHIPBUILDING IS YET IN SIGHT WILL EXACERBATE DEMANDSUPPLY BALANCE THEY ASSERTED IN THE JOINT PROPOSAL ACCORDING TO THE THREE COMPANIES THE CURRENT RUSH OF ORDERS TO SOUTH KOREAN SHIPBUILDERS MAY PROVE SHORTLIVED AS IT WAS BROUGHT BY EXTERNAL FACTORS SUCH AS THE STIFF APPRECIATION OF JAPANESE YEN MAKING KOREAN SHIPS MUCH CHEAPER 9307260107 930726 WHO'S NEWS COCACOLA ENTERPRISES INC COCACOLA ENTERPRISES INC ATLANTA E NEVILLE ISDELL 50 YEARS OLD WAS ELECTED TO THE BOARD OF THIS SOFTDRINK BOTTLER MR ISDELL IS SENIOR VICE PRESIDENT OF COCACOLA CO AND PRESIDENT OF THE NORTHEAST EUROPE/MIDDLE EAST GROUP AT COKE THE ATLANTABASED SOFTDRINK COMPANY HE SUCCEEDS JACK L STAHL 39 WHO RESIGNED FROM THE BOARD IN JULY MR STAHL IS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF COCACOLA CO WHICH HOLDS A 43 STAKE IN COCACOLA ENTERPRISES 9307260106 930726 WHO'S NEWS ETHYL CORP ETHYL CORP RICHMOND VA THIS CHEMICAL CONCERN NAMED TWO NEW CORPORATE VICE PRESIDENTS IN THE PETROLEUM ADDITIVES DIVISION CS WARREN HUANG 43 YEARS OLD BECOMES VICE PRESIDENT WORLDWIDE RESEARCH AND DEVELOPMENT HE HAD BEEN DIRECTOR OF RESEARCH AND DEVELOPMENT FOR PETROLEUM ADDITIVES NEWTON A PERRY 50 BECOMES VICE PRESIDENT AND GENERAL MANAGER OF FUEL ADDITIVES HE HAD BEEN GENERAL MANAGER OF FUEL ADDITIVES 9307260105 930726 WHO'S NEWS ARROW ELECTRONICS INC ARROW ELECTRONICS INC MELVILLE NY STEVE W MENEFEE 48 YEARS OLD A CORPORATE VICE PRESIDENT AND PRESIDENT OF THE ARROW/SCHWEBER ELECTRONICS GROUP UNIT WAS ELECTED A DIRECTOR FILLING A VACANCY JAN SALSGIVER 37 WAS NAMED PRESIDENT OF ZEUS ELECTRONICS A NEWLY ACQUIRED ARROW UNIT SUCCEEDING THE UNIT'S PREVIOUS PRESIDENT WHO LEFT THE COMPANY MS SALSGIVER HAD BEEN VICE PRESIDENT SEMICONDUCTOR MARKETING OF ARROW/SCHWEBER 9307260104 930726 WHO'S NEWS LIZ CLAIBORNE INC LIZ CLAIBORNE INC NEW YORK THE COMPANY SAID IT MERGED ITS SHOE AND SPORT SHOE DIVISIONS UNDER MITCHELL LEWIS FORMERLY PRESIDENT OF THE SPORTS SHOE DIVISION AS A RESULT OF THE MERGER OF THE UNITS LIZ CLAIBORNE ELIMINATED THE POSITION OF IAN WRIGHT FORMERLY PRESIDENT OF THE SHOE DIVISION THE COMPANY SAID MR WRIGHT LEFT THE COMPANY HE WASN'T AVAILABLE FOR COMMENT THE COMPANY'S VICE CHAIRMAN JAY MARGOLIS RECENTLY RESIGNED 9307260103 930726 WHO'S NEWS ACTAVA GROUP ACTAVA GROUP ATLANTA WALTER M GRANT 48 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THIS COMPANY WITH INTERESTS IN RECREATION EQUIPMENT LAWN CARE AND PHOTOFINISHING MR GRANT PREVIOUSLY SERVED AS SENIOR VICE PRESIDENT AND GENERAL COUNSEL FOR THE NORTH AMERICAN OPERATIONS OF SMITH & NEPHEW PLC A LONDONBASED HEALTHCARE COMPANY THE COMPANY ALSO ELECTED RICHARD NEVINS 46 TO THE BOARD EXPANDING IT TO EIGHT MEMBERS MR NEVINS IS PRESIDENT OF A FINANCIAL ADVISORY FIRM RICHARD NEVINS & ASSOCIATES IN SAN FRANCISCO 9307260102 930726 WHO'S NEWS HANSON PLC HANSON PLC LONDON HANSON INDUSTRIES THE US UNIT OF THIS INDUSTRIAL MANAGEMENT COMPANY NAMED GERALD M COHN 44 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS ENDICOTT JOHNSON FOOTWEAR CORP SUBSIDIARY HE SUCCEEDS DAVID T DIPASQUALE 39 WHO BECOMES CHAIRMAN OF HANSON INDUSTRIES' RECREATION AND LEISURE GROUP MR COHN CONTINUES AS PRESIDENT OF GEORGIA BOOT AN ENDICOTT JOHNSON UNIT 9307260101 930726 ECONOMY MACHINETOOL ORDERS DROPPED 22 FROM MAY JUNE LEVEL REMAINS HIGHER THAN A YEAR EARLIER AUTO MAKERS SLOW PACE BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS FELL 22 IN JUNE FROM MAY AS ORDERS FROM AUTO MAKERS SLOWED FOR THE SECOND CONSECUTIVE MONTH DESPITE THE DECLINE TO 3087 MILLION FROM 3158 MILLION THE LATEST MONTH'S ORDERS REMAINED HIGH AND THEY WERE UP 46 FROM 2115 MILLION A YEAR EARLIER MOREOVER MACHINETOOL ORDERS WHICH ARE CONSIDERED AN EARLY ECONOMIC INDICATOR BECAUSE THE TOOLS ARE SHIPPED NINE TO 18 MONTHS AFTER THE ORDERS ARE PLACED SOARED 39 IN THE FIRST HALF TO 176 BILLION FROM 127 BILLION A YEAR EARLIER ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY A TRADE GROUP NONETHELESS AS HAS BEEN THE CASE FOR MOST OF THE YEAR ONLY A HANDFUL OF MACHINETOOL MAKERS THOSE SPECIALIZING IN AUTO TOOLS ARE BENEFITING EVEN THOUGH THE US AUTO INDUSTRY IS PLACING ORDERS AT A SLOWER PACE THAN IT HAD BEEN IT HAS ACCOUNTED FOR THE BULK OF THIS YEAR'S GROWTH IN ORDERS FOR MACHINE TOOLS WHICH CUT AND FORM METAL PARTS FOR OTHER MACHINES AT THE SAME TIME US TOOL MAKERS MUST COMPETE WITH TOOL MAKERS IN GERMANY AND JAPAN WHICH ARE SEEKING A BIGGER SHARE OF THE US MARKET WHILE THEIR HOME MARKETS SLUMP DESPITE THE STRENGTH OF THE MARK AND THE YEN AGAINST THE DOLLAR WHICH IN THEORY SHOULD MAKE THEIR GOODS MORE EXPENSIVE IN THIS COUNTRY THE GERMAN AND JAPANESE MAKERS ARE SLASHING THEIR US PRICES MITCHELL I QUAIN AN ANALYST WITH WERTHEIM SCHRODER & CO ESTIMATED THAT GENERAL MOTORS CORP HAS PLACED 250 MILLION IN ORDERS WITH GERMAN MACHINETOOL MAKERS THIS YEAR UP FROM ALMOST NO SUCH ORDERS IN 1992 GM OFFICIALS WERE UNAVAILABLE TO COMMENT WE CAN'T UNDERSTAND HOW THEY CAN DO THAT WITH THE DOLLAR AS WEAK AS IT IS SAID ROBERT J SIEWERT PRESIDENT OF MONARCH MACHINE TOOL CO IN SIDNEY OHIO AUTO MAKERS ARE BUYING MACHINE TOOLS IN AN EFFORT TO BOOST PRODUCTIVITY CUT COSTS AND TURN OUT NEW PRODUCTS FASTER AS SUCCESSFUL AS CHRYSLER HAS BEEN WITH ITS NEW LINE MUCH OF DETROIT IS STILL PLAYING CATCHUP WITH OFFSHORE COMPETITION SAID WILLIAM G COPELAND OF COPELAND ECONOMICS IN STAMFORD CONN ANALYSTS EXPECT ORDERS FROM THE AUTO MAKERS TO CONTINUE TO SLOW OVER THE NEXT SEVERAL MONTHS HOWEVER THERE ARE SIGNS THAT SOME OTHER SECTORS MIGHT PICK UP AT LEAST SOME OF THAT SLACK MONARCH'S MR SIEWERT SAID INQUIRIES FROM CUSTOMERS IN A VARIETY OF INDUSTRIES HAVE RISEN RECENTLY AND CINCINNATI MILACRON INC HAS SEEN AN INCREASE IN ORDERS FROM MAKERS OF POWERGENERATION EQUIPMENT POWER GENERATION HAS GOT TO GO UP BECAUSE THE WORLD IS SHORT ON POWER SAID RAYMOND E ROSS CINCINNATI MILACRON'S PRESIDENT THERE'S A LOT OF POTENTIAL OUT THERE SAID ELI S LUSTGARTEN AN ANALYST WITH PAINEWEBBER INC MR LUSTGARTEN PROJECTS THAT MACHINETOOL ORDERS WILL RISE 15 TO 20 IN ALL OF 1993 IN JUNE THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY SAID DOMESTIC ORDERS FOR MACHINE TOOLS FELL 11 FROM MAY TO 2965 MILLION FROM 2997 MILLION BUT ROSE 695 FROM THE YEAREARLIER 175 MILLION IN 1993'S FIRST SIX MONTHS DOMESTIC ORDERS CLIMBED 452 TO 16 BILLION FROM 11 BILLION A YEAR EARLIER ORDERS FOR EXPORT FELL 245 IN JUNE FROM MAY TO 122 MILLION FROM 161 MILLION AND 667 FROM 365 MILLION IN JUNE 1992 FOR THE HALF ORDERS FOR EXPORT WERE OFF 05 TO 1653 MILLION FROM 1661 MILLION ANOTHER MEASURE OF MACHINETOOL ORDERS AN INDEX COMPILED BY THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION SHOWED THAT ORDERS CLIMBED 297 IN JUNE FROM MAY 9307260100 930726 SERVICE IS FAST BECAUSE THE DISHES CAN'T BE PUT ON THE BACK BURNER BY SHAKIRA HIGHTOWER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA ASK THE FOLKS AT DELIGHTS OF THE GARDEN RESTAURANT WHAT'S COOKING AND YOU'LL GET A SHORT ANSWER NOTHING IS THIS EATERY OFFERS ONLY RAW FOOD BUT DON'T EXPECT SUSHI OR CARPACCIO DELIGHTS IS ALSO STRICTLY VEGETARIAN OUR RAWFOOD VEGETARIAN DISHES CONSIST ENTIRELY OF FRUITS VEGETABLES NUTS SEEDS AND GRAINS SAYS COOWNER ANU KMT PRONOUNCED KEMET WE PREPARE THE FOOD WITHOUT ANY HEAT SOURCES WITH THOSE GROUND RULES THE FIVEMONTHOLD ESTABLISHMENT'S MENU IS OF COURSE HEAVY ON SALADS BUT DELIGHTS ALSO SERVES UP ITS VERSIONS OF PIZZA SPAGHETTI BROWNIES AND PIE RELYING ON DEHYDRATION AND REFRIGERATION TO HOLD COOKIES AND CRUSTS TOGETHER THE SPAGHETTI DISH SUBSTITUTES RAW BEAN SPROUTS FOR NOODLES THE ACCOMPANYING MEATBALLS ARE NUTMEAT BALLS AND THERE'S NOTHING FISHY ABOUT THE VEGGIE TUNA IT'S ACTUALLY CARROTS SHREDDED TO APPROXIMATE TUNA'S CONSISTENCY HOW DOES THIS FARE FARE IN BISCUITSANDGRAVY COUNTRY IT'S NOT THE USUAL THING SAYS ELLIOTT MACKLE A RESTAURANT REVIEWER FOR THE ATLANTA JOURNALCONSTITUTION WITH GREAT UNDERSTATEMENT MR MACKLE FINDS THE SPAGHETTI APPEALING VISUALLY BUT NOT TEXTURALLY THE SPROUTS ARE SO HARD THE CARNIVOROUS CRITIC ADDS I OBJECT TO MAKING VEGETARIAN STUFF LOOK LIKE MEAT STUFF IF THERE'S NO TUNA IN THE VEGGIE TUNA WHY CALL IT TUNA BUT ANOTHER CARNIVORE RETAILER BAYO SULAIMON SAYS HE TRIES TO EAT AT LEAST ONE MEAL A DAY AT DELIGHTS HIS FAVORITE DISH IS THE GARDEN SAMPLER KUSH CRACKED WHEAT MARINATED IN OILS AND HERBS NUTS VEGGIE TUNA AVOCADO MARINATED VEGETABLES AND A GARDEN SALAD IT'S A MEAL THAT A HEALTHY BODY NEEDS AT LEAST ONCE A DAY MR KMT'S PARTNER STEVE CAMPBELL DEFENDS DELIGHTS' OFFERINGS WE DON'T CLAIM THAT ANY OF OUR FOOD IS LIKE ANYTHING THAT YOU'VE HAD BEFORE HE SAYS BUT WE TRY TO PUT DESCRIPTIONS ON OUR MENU THAT PEOPLE CAN RELATE TO THE TWO 24YEAROLD RESTAURATEURS KNOW THEIR CULINARY VISION ISN'T UNIVERSAL BUT ENOUGH ATLANTANS FREQUENT THE TINY FIVETABLE DELIGHTS THAT THEY OPENED ANOTHER OUTLET IN THIS CITY IN JUNE AND ONE IN WASHINGTON EARLIER THIS MONTH THEY PLAN A PHILADELPHIA LOCATION BY YEAR'S END FOOD CRITIC MACKLE GIVES DELIGHTS 1 1/2 PEACHES OUT OF A POSSIBLE FOUR ON HIS UNIQUELY GEORGIAN SCALE THAT'S ABOUT AVERAGE MR MACKLE SAYS SOME RESTAURANTS ONLY GET PITS 9307260099 930726 MARKETING & MEDIA CABLE SYSTEM TO PAY FOR USING THE SIGNAL OF TELEVISION STATION NEW YORK COSMOS BROADCASTING CORP SAID A LOCAL CABLE SYSTEM HAS AGREED TO PAY IT CASH TO USE ONE OF ITS TELEVISION STATION'S SIGNALS MAKING IT AMONG THE FIRST STATIONS IN THE NATION TO GET SUCH COMPENSATION UNDER A NEW CABLE LAW SEVERAL OTHER STATIONS ALSO ARE SAID TO BE CLOSE TO REACHING CASH PAYMENT AGREEMENTS INDUSTRY EXECUTIVES SAID SOME OTHER STATIONS HAVE REACHED AGREEMENTS BUT HAVEN'T ANNOUNCED THEM COSMOS PRESIDENT JIM KEELOR DECLINED TO SAY WHICH OF HIS SEVEN NETWORKAFFILIATED STATIONS REACHED THE AGREEMENT AND HOW MUCH IT WAS BEING PAID IN THE THREEYEAR PACT HE SAID THE CABLE SYSTEM WAS LOCALLY OWNED AND NOT PART OF A MULTIPLE SYSTEM OPERATOR MOST LARGE CABLE OPERATORS HAVE INSISTED THEY WON'T PAY CASH FOR USE OF STATIONS' SIGNALS ALTHOUGH SOME HAVE AGREED TO NONCASH TRANSACTIONS SUCH AS MAKING SPACE ON THEIR LINEUPS FOR NEW CABLE NETWORKS OWNED BY A BROADCAST STATION'S PARENT COMPANY IN THE BIGGEST SUCH AGREEMENT CAPITAL CITIES/ABC INC AND HEARST CORP TRADED USE OF THEIR STATIONS' SIGNALS TO CARRY THEIR NEW SPORTS CHANNEL ESPN2 ON CONTINENTAL CABLEVISION INC SYSTEMS COSMOS A UNIT OF GREENVILLE SCBASED LIBERTY CORP GOT THE AGREEMENT MR KEELOR SAID BECAUSE THE LOCAL CABLE SYSTEM OWNER REALLY DOES UNDERSTAND THE EMOTIONAL CONNECTION BETWEEN A LOCAL COMMUNITY AND A LOCAL TELEVISION STATION LARGER CABLE OPERATORS REALLY DON'T UNDERSTAND THAT CONNECTION BUT I THINK THEY ARE GOING TO LEARN HE SAID 9307260098 930726 MEN'S WEARHOUSE TO MEET EXPECTATIONS ON 2NDPERIOD PROFIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK MEN'S WEARHOUSE INC EXPECTS TO AT LEAST MEET ANALYSTS' EARNINGS EXPECTATIONS ON A PRESPLIT BASIS OF 17 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDING IN JULY ACCORDING TO DAVID EDWAB CHIEF OPERATING OFFICER OF THE OFFPRICE RETAILER OF MEN'S TAILORED APPAREL THAT WOULD COMPARE WITH EARNINGS OF 14 CENTS A SHARE ON A PRESPLIT BASIS AND ON FEWER SHARES OUTSTANDING A YEAR EARLIER HE SAID MEN'S WEARHOUSE CONTINUES TO EXPERIENCE COMPARABLESTORE SALES GAINS IN THE DOUBLE DIGITS TO DATE IN JULY HE SAID MEN'S WEARHOUSE LAST WEEK DECLARED A 50 STOCK DIVIDEND PAYABLE AUG 6 TO HOLDERS OF RECORD JULY 26 THE COMPANY NOTED THEN THAT BEFORE THE DIVIDEND IT HAD 81 MILLION SHARES OUTSTANDING AFTER DISTRIBUTION OF THE DIVIDEND THE COMPANY SAID THERE WILL BE 121 MILLION SHARES AS FACTORS ACCOUNTING FOR THE EXPECTED EARNINGS GAIN THE EXECUTIVE CITED THE CONTINUING INDUSTRY CONSOLIDATION INVOLVING RETAILERS SELLING MEN'S TAILORED CLOTHING AND VARIOUS OPERATIONAL STRATEGIES MEN'S WEARHOUSE HAS BEEN IMPLEMENTING INCLUDING INCREASING THE NUMBER OF BRANDED PRODUCTS CARRIED BY THE STORES CARRYING HIGHER PRICEPOINT GOODS ALSO CONTRIBUTED TO THE ANTICIPATED SECONDQUARTER EARNINGS GAIN MR EDWAB SAID NOTING THAT THE PRICE POINTS RANGE FROM 179 TO 495 WITH THE AVERAGETICKET ITEM SELLING FOR 275 TO 280 MEN'S WEARHOUSE HAS JUST UNDER 160 STORES IN OPERATION AND EXPECTS BY YEAR'S END TO HAVE ABOUT 183 OPEN MR EDWAB SAID BY 1996 HE CONTINUED IT EXPECTS TO HAVE ABOUT 300 STORES AT THIS POINT THE GOAL IS TO HAVE ABOUT 500 STORES IN OPERATION ACROSS THE US HE SAID MR EDWAB ALSO SAID THE COMPANY'S MADE BY AMERICA OR MBA SPORTSWEAR CATALOG WHICH WAS INTRODUCED LAST YEAR IS BREAKING EVEN IT'S OUR WAY OF SELLING SPORTSWEAR WITHOUT TAKING THE FINANCIAL RISK HE SAID ADDING THAT MEN'S WEARHOUSE CONTINUES TO EVALUATE THE CONCEPT 9307260097 930726 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON THIS TELECOMMUNICATIONS COMPANY NAMED GARY PARSONS 43 YEARS OLD AN EXECUTIVE VICE PRESIDENT THE POSITION IS NEW MR PARSONS WHO HAS BEEN SENIOR VICE PRESIDENT OF CORPORATE AND PUBLIC POLICY WILL CONTINUE THOSE RESPONSIBILITIES AND ASSUME ADDITIONAL DUTIES PROVIDING SYSTEMS AND NETWORK ENGINEERING SUPPORT TO MCI'S OPERATING UNITS 9307260096 930726 SAFETY 1ST INC SAYS NET INCOME ROSE 34 IN THE SECOND QUARTER NEWTON MASS SAFETY 1ST INC EXPECTS TO REPORT A 34 INCREASE IN NET INCOME ON A 39 SALES GAIN FOR THE SECOND QUARTER THE MAKER OF CHILDRENS' SAFETY PRODUCTS SHOULD POST NET INCOME OF APPROXIMATELY 13 MILLION OR 20 CENTS TO 22 CENTS A SHARE UP FROM 974281 OR 15 CENTS A SHARE A YEAR EARLIER SAID MICHAEL LERNER CHIEF EXECUTIVE OFFICER THE COMPANY WHICH WENT PUBLIC IN APRIL SAID PERSHARE FIGURES ARE BASED ON 6092000 SHARES CURRENTLY OUTSTANDING COMPARED WITH 5000000 A YEAR AGO SALES ARE EXPECTED TO EXCEED 11 MILLION UP FROM 79 MILLION A YEAR AGO MR LERNER SAID IN AN INTERVIEW THE COMPANY PLANS TO REPORT ITS RESULTS BY THE MIDDLE OF THIS WEEK FOR THE SIX MONTHS NET INCOME SHOULD EQUAL APPROXIMATELY 24 MILLION OR 43 CENTS TO 45 CENTS A SHARE ON SALES OF ABOUT 225 MILLION THAT COMPARES WITH NET OF 17 MILLION OR 34 CENTS A SHARE A YEAR EARLIER WHEN SALES WERE ABOUT 151 MILLION MR LERNER SAID HE IS VERY COMFORTABLE WITH FULLYEAR PROJECTIONS BY ANALYSTS THAT SAFETY 1ST WILL EARN 71 CENTS A SHARE ON REVENUE OF 418 MILLION IN 1993 IN 1992 SAFETY 1ST HAD A PROFIT OF 44 CENTS A SHARE ON SALES OF 285 MILLION FOUNDED NINE YEARS AGO WITH ITS CREATION OF THE YELLOWANDBLACK DIAMONDSHAPED BABY ON BOARD AUTOMOBILEWINDOW DISPLAY SAFETY 1ST TODAY MAKES ABOUT 175 PRODUCTS ITS CABINET LOCKS CORNER CUSHIONS PACIFIERS TETHERS BATH SEATS AND NURSERY MONITORS ARE ALL GEARED TOWARD PARENTS OF YOUNG CHILDREN PRICES RANGE FROM 99 CENTS TO 3999 BUT THE BULK OF ITS PRODUCTS SELL FOR 299 TO 399 MR LERNER SAID TOYS R US INC WALMART STORES INC AND KMART CORP ACCOUNT FOR 41 OF THE COMPANY'S REVENUE THIS YEAR THE COMPANY WILL INTRODUCE 50 NEW ITEMS AND ABOUT THE SAME NUMBER IN 1994 MR LERNER SAID HE DECLINED TO BE MORE SPECIFIC ABOUT PRODUCT TYPES MR LERNER SAID HE EXPECTS INTERNATIONAL BUSINESS WILL INCREASE MORE THAN 50 ANNUALLY AS RETAILERS LIKE TOYS R US EXPAND ITS OVERSEAS MARKETS 9307260095 930726 TIME MAGAZINE WILL HIT ELECTRONIC NEWSSTANDS NEW YORK TIME MAGAZINE MOVING INTO THE INTERACTIVE AGE SAID IT WILL MAKE THE 70YEAROLD WEEKLY NEWSMAGAZINE AVAILABLE TO SUBSCRIBERS ON THE AMERICA ONLINE INC COMPUTER NETWORK IN SEPTEMBER THE MOVE IS THE FIRST BY A NEWSMAGAZINE TO OFFER A FULL ELECTRONIC VERSION OF ITS CURRENT ISSUE WASHINGTON POST CO'S NEWSWEEK LAST YEAR LAUNCHED A QUARTERLY VERSION OF THE MAGAZINE ON SPECIALLY DESIGNED AND EDITED MULTIMEDIA CDROM DISKS AMERICA ONLINE HAS A SUBSCRIBER BASE OF ABOUT 300000 SUBSCRIBERS WILL BE ABLE TO CALL UP TIME ONLINE AND GET THE FULL TEXT OF THE MAGAZINE AS EARLY AS SUNDAY AFTERNOON SUBSCRIBERS ALSO WILL BE ABLE TO ASK QUESTIONS OF TIME EDITORS AND REPORTERS VIA ELECTRONIC MAIL TIME INTENDS TO HOLD ONLINE NEWS CONFERENCES IN WHICH PROMINENT NEWSMAKERS WOULD ELECTRONICALLY ANSWER READERS' QUESTIONS TIME ONLINE WILL NOT CARRY ADVERTISING BUT MAY EVENTUALLY CARRY THE GRAPHICS AND PHOTOGRAPHS NORMALLY FOUND IN THE MAGAZINE AN ELECTRONIC SUBSCRIPTION SERVICE WILL ALLOW ONLINE READERS TO ORDER A HARDCOPY SUBSCRIPTION TO TIME TIME OWNED BY TIME WARNER INC WILL RECEIVE A FLAT FEE PLUS SOME ROYALTIES FOR BEING ON THE NETWORK AND AMERICA ONLINE WILL GET SOME AD SPACE IN TIME 9307260094 930726 A SWITCH FOR BANKS EXCESSIVE RESERVES SOME OBSERVERS SEE PUSH TO INCREASE LENDING BY SANDRA WARD SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER YEARS OF BEING PUSHED BY REGULATORS TO BUILD UP LOANLOSS RESERVES BANKS ARE NOW FACED WITH A NEW CONCERN EXCESSIVE RESERVES WITH THE ECONOMY RECOVERING ASSET QUALITY IMPROVING AND LOAN DEMAND STILL WEAK THERE IS CONCERN THAT RESERVES ARE TOO HIGH REGULATORS AND INDUSTRY OBSERVERS SAID JUST AS UNDERRESERVING WAS THE ISSUE IN THE HIGHROLLING FASTGROWTH 1980S OVERRESERVING SEEMS TO BE THE ISSUE FOR THE MORE TEMPERED 1990S INDEED SOME OBSERVERS SUGGEST THAT THE STEPPEDUP PUSH FOR BANKS TO RECAPTURE RESERVES IS POLITICALLY MOTIVATED AIMED AT UNLEASHING LENDING ACTIVITY AND STIMULATING THE ECONOMY SO FAR REGULATORS HAVE ONLY PUT THE INDUSTRY AND ITS AUDITORS ON ALERT TO EXPECT CAREFUL SCRUTINY OF EXCESSIVELY HIGH RESERVES HIGH RESERVES IN THE FACE OF DECLINING NONPERFORMING ASSETS AND LOANS COULD PROVOKE INQUIRIES INTO A BANK'S RESERVING METHODS THAT WILL HAVE TO BE JUSTIFIED SAID DONALD COONLEY CHIEF NATIONAL BANK EXAMINER AT THE OFFICE OF THE COMPTROLLER OF THE CURRENCY CONSISTENCY OF RESERVING THROUGH BAD TIMES AND GOOD ALSO WILL BE CLOSELY MONITORED PENALTIES COULD BE ASSESSED IF A BANK MAINTAINS HIGH RESERVES WITHOUT GOOD REASON BUT MR COONLEY EXPECTS THE MARKET TO BE A MORE POWERFUL ENFORCER THAN GOVERNMENT REGULATORS SUGGESTING THAT INVESTORS WILL REWARD THOSE COMPANIES THAT USE THEIR CAPITAL TO GROW AND PRODUCE EARNINGS AND PRESSURE THOSE THAT RESERVE CONSERVATIVELY AT THE RISK OF FALLING BEHIND THE INDUSTRY IT'S BECOME A PROBLEM SAID NANCY BUSH AN ANALYST AT BROWN BROTHERS HARRIMAN & CO LET'S SEE THE EARNINGS YOU DON'T NEED ANY MORE RESERVES ONLY ONE BANK HAS BEEN ORDERED TO CUT RESERVE LEVELS IN THE PAST SIX MONTHS AND THAT WAS BECAUSE ITS MANAGERS WERE PLANNING TO USE THE FUNDS FOR PURPOSES OTHER THAN LOANLOSS PROTECTION MR COONLEY SAID HE WOULDN'T IDENTIFY THE INSTITUTION BUT SAID IT WASN'T PUBLICLY HELD RESERVES ARE TYPICALLY SET ASIDE TO CUSHION AGAINST POTENTIAL PROBLEMS WITH CURRENT OUTSTANDING LOANS BASED ON HISTORICAL LOSS RATES OVERRESERVING IS A CONCERN FOR REGULATORS BECAUSE IT CAN LEAD TO A MISREPRESENTATION OF THE TRUE FINANCIAL CONDITION OF A BANK MR COONLEY SAID EXCESSIVE RESERVES PROVIDE A WAY FOR BANK MANAGEMENT TO PRODUCE STEADY EARNINGS GROWTH WHILE POSSIBLY MASKING ANY LOANPORTFOLIO DETERIORATION HE SAID MORE TYPICALLY MR COONLEY SAID OVERRESERVING RESULTS FROM MANAGEMENT'S RELUCTANCE TO RECOGNIZE A RECOVERY AFTER GROWING OVERLY CAUTIOUS IN DIFFICULT TIMES WHEN IT'S GOING DOWN THEY DON'T BELIEVE YOU AND WHEN IT'S IMPROVING THEY DON'T BELIEVE YOU HE SAID MR COONLEY DRAWS PARALLELS WITH THE BIG BUILDUP OF RESERVES BY AGRICULTURAL LENDERS IN THE FARM CRISIS A DECADE AGO AND THEIR SUBSEQUENT RELUCTANCE TO BRING THEM DOWN AS THE RURAL ECONOMY IMPROVED BUT HE DENIED THAT THE RESERVE ISSUE IS POLITICALLY MOTIVATED THERE CERTAINLY HASN'T BEEN ANYTHING POLITICAL DISCUSSED WITH US TO GO AFTER THOSE RESERVES HE SAID NOTING THAT MOST BANKS HAVE PLENTY OF MONEY AVAILABLE TO MAKE LOANS AND ARE FINDING IT DIFFICULT TO UTILIZE THEIR CAPITAL MOST BANKS WERE ALERTED TO THE REGULATOR'S POSITION IN FEBRUARY 1992 THROUGH A REVISED POLICY SHEET ON ALLOWANCES FOR LOAN LOSSES KNOWN AS CIRCULAR 201 WHICH BANKERS SAID IS MORE SPECIFIC ABOUT EXCESSIVE RESERVES AND STRONGLY SUGGESTS THAT MANAGEMENT AVOID CARRYING EXCESS RESERVES BUT THE TOPIC HAS EMERGED LATELY AS A CENTRAL POINT IN DISCUSSIONS WITH BANK EXAMINERS BANKERS SAID INVESTORS IN BANKS STAND TO BENEFIT IF FREED RESERVES FLOW BACK INTO INCOME STATEMENTS BOOSTING EARNINGS AND SHARE PRICES SAID THOMAS HANLEY A BANK ANALYST AT FIRST BOSTON CORP THIS COULD BE A POTENT SOURCE OF EARNINGS OVER THE 19941995 TIME FRAME HE SAID MR HANLEY ESTIMATES THAT THE 35 BANKS HE COVERS COMBINED COULD SEE 99 BILLION ADDED TO PRETAX INCOME BY 1995 AS A RESULT OF THE RELEASED RESERVES THIS REPRESENTS 37 OF 1995 EARNINGS AS ORIGINALLY PROJECTED AND IS MORE THAN THE GROUP POSTED IN AFTERTAX INCOME IN 1991 MR HANLEY WROTE IN A RECENT REPORT HE MAINTAINED THAT THE DEVELOPMENT COULD CONTINUE TO MAKE BANK STOCKS ATTRACTIVE INVESTMENTS FOR THE NEXT TWO YEARS MR HANLEY CITED JP MORGAN & CO FIRST AMERICAN CORP OF TENNESSEE FIRST TENNESSEE NATIONAL CORP AND NORWEST CORP AS AMONG THOSE WITH THE MOST SIGNIFICANT POTENTIAL FOR GAINS IN BOOK VALUE INDEED WHEN DEPOSIT GUARANTY CORP A 5 BILLIONASSET BANK IN JACKSON MISS ANNOUNCED JUNE 25 THAT ITS SHREVEPORT LA COMMERCIAL NATIONAL BANK SUBSIDIARY WOULD BOOK 7 MILLION IN ADDITIONAL AFTERTAX INCOME AFTER A RELEASE OF RESERVES ITS STOCK AND OTHERS IN THE BANKING SECTOR RALLIED DEPOSIT GUARANTY'S CHIEF CREDIT OFFICER JAMES LENOIR INSISTS DEPOSIT LOWERED ITS RESERVE VOLUNTARILY AND NOT AT THE URGING OF REGULATORS OR ITS INTERNAL AUDITORS THE MOVE REFLECTS CONSISTENTLY BETTER CREDIT QUALITY MR LENOIR SAID AND IS SOMETHING WE HAD BEEN WATCHING AND MONITORING DEPOSIT HADN'T ADDED TO ITS LOANLOSS PROVISION SINCE THE THIRD QUARTER OF 1992 HOWEVER MR LENOIR SAID DEPOSIT IS AWARE THAT REGULATORS ARE LOOKING AT EXCESSIVE RESERVES AND MAINTAINS CLOSE CONTACT WITH ITS EXAMINERS YET MOST BANKS AREN'T RUSHING TO UNWIND RESERVES MANY INCLUDING HEAVILY RESERVED SUNTRUST BANKS INC WITH A RATIO OF 102 RESERVES TO TOTAL NONPERFORMING ASSETS AND 163 OF NONPERFORMING LOANS AND PNC BANK CORP WITH 135 OF RESERVES TO TOTAL NONPERFORMING ASSETS AND 200 OF NONPERFORMING LOANS CONTINUED TO BUILD RESERVES IN THE SECOND QUARTER SO DID BARNETT BANKS INC WHICH SAID ITS GOAL IS A FORTRESS BALANCE SHEET STRONG CAPITAL AND STRONG RESERVES WE'RE NOT IN A RUSH TO DRAIN RESERVES SAID ROBERT STICKLER A BARNETT SPOKESMAN NOTING THAT AT SOME POINT THE RATIO TO TOTAL LOANS WILL DECLINE BUT THAT THE COMPANY WANTS TO MAINTAIN HIGHER RESERVES TO TOTAL NONPERFORMING AND TOTAL LOANS THAN IT DID IN THE PAST PNC HOWEVER SAID IT IS UNDER INCREASING PRESSURE FROM REGULATORS TO JUSTIFY ITS HIGH LOSS RESERVE THEY'VE APPLIED NO DIRECT PRESSURE WHATSOEVER A PNC SPOKESMAN SAID WHAT THEY HAVE DONE IS TO ASK US TO PROVIDE A LOT MORE DOCUMENTATION SUPPORTING LOAN RESERVES BANC ONE CORP REDUCED ITS LOSS RESERVE BY 23 MILLION IN THE SECOND QUARTER CITING DECLINING NONPERFORMING ASSETS AND INCREASING REGULATORY PRESSURE STILL BANC ONE'S RATIO OF RESERVES TO NONACCRUAL LOANS ROSE TO 184 AT JUNE 30 FROM 176 AT MARCH 31 THE BANKS HAVE SUFFERED THROUGH THE PAIN AND NOW THE SIREN CALL IS GOING OUT AND I THINK IT'S GOING TO BE RESISTED SAID ANTHONY DAVIS AN ANALYST AT DEAN WITTER REYNOLDS INC IT'S A COMPLETE FLIPFLOP FROM A REGULATORY STANDPOINT 9307260093 930726 DALLAS APPRAISER GETS SIXYEAR JAIL SENTENCE DALLAS PAUL D TANNEHILL THE DALLAS APPRAISER WHO WAS CONVICTED IN APRIL ON FEDERAL CONSPIRACY AND FRAUD CHARGES FOR HIS ROLE IN A REAL ESTATE LENDING SCHEME 10 YEARS AGO WAS SENTENCED TO SIX YEARS IN FEDERAL PRISON MR TANNEHILL 44 YEARS OLD WAS ALSO ORDERED TO PAY A 30000 FINE EARLIER THIS YEAR HE WAS FOUND GUILTY OF SUBMITTING FRAUDULENT PROPERTY APPRAISALS IN 1982 AND EARLY 1983 TO SUPPORT APPLICATIONS FOR LOANS FOR AN ILLFATED CONDOMINIUM DEVELOPMENT ALONG INTERSTATE 30 EAST OF DALLAS THE SCHEME LATER CAUSED THE COLLAPSE OF FIVE OF THE SAVINGS AND LOAN INSTITUTIONS THAT MADE THE LOANS DURING THE TRIAL THE GOVERNMENT CONTENDED THAT MR TANNEHILL RECEIVED 500000 IN FEES FOR THE FRAUDULENT APPRAISALS AND PROFITS FROM HIS INTEREST IN THE DEVELOPMENT HE WASN'T ORDERED TO PAY ANY RESTITUTION HIS ATTORNEY SAID MR TANNEHILL WAS THE LAST OF ABOUT 100 DEFENDANTS PROSECUTED IN THE CASE HE HAS APPEALED THE CONVICTION AND WASN'T ORDERED TO REPORT TO PRISON HIS ATTORNEY THOMAS MILLS SAID MR TANNEHILL WAS HOPING TO RECEIVE ONLY PROBATION BUT WAS GLAD IT WASN'T WORSE PROSECUTORS COULDN'T BE REACHED FOR COMMENT 9307260092 930726 WHO'S NEWS ARTISOFT EXCHAIRMAN NOMINATES 3 PEOPLE FOR ELECTION TO BOARD TUCSON ARIZ ARTISOFT INC SAID IT RECEIVED A LETTER FROM C JOHN SCHOOF THE COMPANY'S FORMER CHAIRMAN AND CHIEF EXECUTIVE NOMINATING THREE PEOPLE FOR ELECTION TO ARTISOFT'S BOARD MR SCHOOF ARTISOFT'S LARGEST STOCKHOLDER WAS FIRED LAST MONTH BUT REMAINS A DIRECTOR HE ALSO PROPOSES TO AMEND THE COMPANY'S BYLAWS TO EXPAND THE SIZE OF THE BOARD TO SEVEN FROM SIX MEMBERS ONE OF HIS THREE NOMINEES WOULD FILL THE NEW SEAT BUT IN A STATEMENT MR SCHOOF SUGGESTED HE ISN'T INTERESTED IN REGAINING CONTROL OF THE COMPANY HE SIMPLY WANTS TO PROTECT HIS PERSONAL INVESTMENT HE SAID WILLIAM C KEIPER WHO SUCCEEDED MR SCHOOF AS CHIEF EXECUTIVE SAID THE BOARD WOULD REVIEW THE NOMINATIONS HE SAID HOWEVER THAT THE TWO INCUMBENT BOARD MEMBERS ARE WELLQUALIFIED CANDIDATES FOR REELECTION ARTISOFT ALSO SAID ON FRIDAY THAT MR SCHOOF HAS FILED A DEMAND FOR ARBITRATION WITH RESPECT TO HIS FIRING HE IS SEEKING 1150000 IN SALARY AND BONUS AND VESTING OF STOCK OPTIONS UNDER HIS THENEXISTING EMPLOYMENT AGREEMENT THE COMPANY SAID THAT EVEN IF MR SCHOOF PREVAILS ANY POTENTIAL AWARD WILL NOT BE MATERIAL TO THE COMPANY 9307260091 930726 MARKETING & MEDIA TIME WARNER IN TURNAROUND TO JOIN TEST OF CABLE TV SERVICE WITH NYNEX BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC WHICH HAD OPPOSED A TEST OF A RIVAL TECHNOLOGY TO DELIVER CABLE TELEVISION PROGRAMMING PLANS TO PARTICIPATE IN THAT TRIAL BY NYNEX CORP OF A VIDEO DIAL TONE SYSTEM NYNEX IS EXPECTED TO ANNOUNCE AS EARLY AS TODAY THAT TIME WARNER IS JOINING THE ONEYEAR TEST IN WHICH THE REGIONAL PHONE COMPANY IS INSTALLING FIBEROPTIC LINES TO CARRY BASIC CABLETV PROGRAMMING TO ROUGHLY 2500 CUSTOMERS IN MANHATTAN NYNEX'S PARTNER IN THE TEST IS LIBERTY CABLE TELEVISION OF MANHATTAN WHICH USES MICROWAVE TECHNOLOGY KNOWN AS WIRELESS CABLE TO DELIVER CABLE TV TO ABOUT 14000 CUSTOMERS THE SYSTEM THAT NYNEX PLANS TO TEST ALSO WILL PROVIDE INTERACTIVE OR TWOWAY INFORMATION AND ENTERTAINMENT INCLUDING MOVIES ON DEMAND AND HOME SHOPPING NYNEX ALSO PLANS TO TEST SWITCHING TECHNOLOGIES AND WAYS TO STORE VIDEO PROGRAMS FOR NYNEX AND OTHER PHONE COMPANIES MARKETING VIDEOTRANSMISSION CAPABILITIES TO SOCALLED WIRELESS CABLE OPERATORS SUCH AS LIBERTY COULD GIVE ESTABLISHED CABLE OPERATORS LIKE TIME WARNER HEATED COMPETITION HOWEVER SOME PHONE COMPANIES ARE WORKING DIRECTLY WITH CABLE OPERATORS TIME WARNER IS TESTING ITS OWN VERSION OF AN INTERACTIVE ELECTRONIC SUPERHIGHWAY IN ORLANDO FLA TELEPHONE COMPANY U S WEST INC HAS AGREED TO BUY A 26 STAKE IN TIME WARNER'S ENTERTAINMENT UNIT FOR 25 BILLION AND THE TWO ARE JOINTLY DEVELOPING THE ELECTRONIC SUPERHIGHWAY TECHNOLOGY THE ORLANDO PILOT PROJECT WOULD INCLUDE A FULLSERVICE NETWORK FOR PROVIDING MOVIES ON DEMAND HOME SHOPPING LOCAL TELECOMMUNICATIONS SERVICE AND A VARIETY OF OTHER INFORMATION AND ENTERTAINMENT FARE TIME WARNER SAID IT HAS DECIDED TO PARTICIPATE IN THE NYNEXLIBERTY TEST IN ORDER TO GET A CLOSEUP LOOK AT WHAT IT CALLED INFERIOR PHONECOMPANY TECHNOLOGY FOR PROVIDING ENTERTAINMENT AND INFORMATION SERVICES IN THE FUTURE A NEW YORK TELEPHONE OFFICIAL RESPONDED THAT NYNEX'S AND TIME WARNER'S TECHNOLOGIES ARE UNTESTED ADDING THEY ARE USING PROTOTYPE TECHNOLOGY AS ARE WE TIME WARNER APPEARS TO HAVE ADOPTED A PHILOSOPHY OF IF YOU CAN'T BEAT THEM JOIN THEM THE COMPANY'S NEW YORK CITY CABLETV OPERATION WHICH BOASTS ALMOST ONE MILLION CUSTOMERS HAD MOVED AGGRESSIVELY TO BLOCK THE BID BEGUN LAST YEAR BY NYNEX'S NEW YORK TELEPHONE UNIT TO WIN THE REQUIRED APRROVALS FOR THE TEST FROM THE FEDERAL COMMUNICATIONS COMMISSION THE FCC APPROVED THE NYNEX TRIAL IN JUNE ANYWAY TIME WARNER'S OPPOSITION CENTERED ON THE ROLE OF LIBERTY AND ALSO ON SOME OF THE BROADER ISSUES BETWEEN THE CABLETV AND TELECOMMUNICATIONS INDUSTRIES TIME WARNER HAD ARGUED THAT THE TEST AS ORIGINALLY PROPOSED DISCRIMINATED AGAINST IT AND OTHER PROVIDERS OF CABLETV FARE TO THE ADVANTAGE OF LIBERTY CABLE THE TEST SITES INCLUDE THREE BUILDINGS TWO OF WHICH ARE OWNED BY LIBERTY'S OWNER LOCAL REAL ESTATE GIANT MILSTEIN PROPERTIES LIBERTY AND TIME WARNER HAVE BEEN LOCKED IN A PROTRACTED LEGAL BATTLE OVER MILSTEIN'S ALLEGED LOCKOUT OF TIME WARNER CABLE FROM THE TWO BUILDINGS IN THAT DISPUTE LIBERTY HAD ARGUED THAT IT HAD DENIED ACCESS TO TIME WARNER CABLE BECAUSE TIME WARNER WHICH ALSO IS ONE OF THE WORLD'S MAJOR OWNERS OF CABLE PROGRAM CHANNELS FOR A WHILE WOULDN'T SELL PROGRAMMING TO LIBERTY 9307260090 930726 WHO'S NEWS USAA NAMES HERRES TO TWO TOP POSITIONS SAN ANTONIO USAA NAMED ROBERT T HERRES CHAIRMAN AND CHIEF EXECUTIVE OFFICER TO SUCCEED ROBERT F MCDERMOTT WHO BUILT THE COMPANY INTO ONE OF THE NATION'S LARGEST INSURERS IN HIS 24 YEARS AS ITS HEAD THE CHANGE IS EFFECTIVE SEPT 1 MR HERRES 60 YEARS OLD HAS BEEN EXPECTED TO SUCCEED MR MCDERMOTT 72 SINCE JOINING USAA AS VICE CHAIRMAN IN 1990 USAA SELLS AUTOMOBILE HOMEOWNERS AND LIFE INSURANCE TO ACTIVE AND RETIRED MILITARY OFFICERS DURING MR MCDERMOTT'S TENURE THE COMPANY GREW FROM HAVING 653000 CUSTOMERS TO 24 MILLION USAA RANKS AS THE NATION'S FOURTHLARGEST PROVIDER OF HOMEOWNER INSURANCE MR HERRES IS A RETIRED AIR FORCE GENERAL AND FORMER VICE CHAIRMAN OF THE JOINT CHIEFS OF STAFF MR MCDERMOTT IS A RETIRED AIR FORCE BRIGADIER GENERAL USAA IS OWNED BY ITS POLICYHOLDERS 9307260089 930726 THERMO PROCESS SAYS NET SOARED IN JULY QUARTER BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL THERMO PROCESS SYSTEMS INC CITING GROWTH IN ITS SOIL DECONTAMINATION BUSINESS SAID IT EXPECTS TO REPORT THAT NET INCOME MORE THAN TRIPLED ON A 28 REVENUE RISE IN ITS FIRST QUARTER THOMAS P PLUNKETT PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE EXPECTS THE COMPANY TO REPORT NET INCOME OF ABOUT 11 MILLION OR SEVEN CENTS A SHARE FOR THE FISCAL QUARTER ENDED JULY 3 IN THE YEARBEFORE QUARTER THERMO PROCESS HAD PROFIT OF 349000 OR TWO CENTS A SHARE REVENUE IN THE LATEST QUARTER WAS ABOUT 13 MILLION COMPARED WITH 10 MILLION IN THE YEAREARLIER PERIOD MR PLUNKETT SAID IN AN INTERVIEW THERMO PROCESS BASED IN LIVONIA MICH OPERATES SIX FACILITIES NATIONWIDE THAT DECONTAMINATE PETROLEUMTAINTED SOIL ITS CUSTOMERS TYPICALLY ARE OIL AIRLINE TRUCKING AND OTHER COMPANIES INVOLVED IN CLEANING UP LEAKING UNDERGROUNDSTORAGE TANKS THERMO PROCESS IS ALSO A MAKER OF INDUSTRIAL FURNACES FOR AUTOMOTIVE AEROSPACE AND DEFENSE COMPANIES THE FURNACES FUSE AND HARDEN METAL PARTS THE COMPANY SAID THIS BUSINESS CALLED HOLCROFT IS SHRINKING AND NOW ACCOUNTS FOR 50 OF ITS QUARTERLY REVENUE COMPARED WITH 70 A YEAR AGO THERMO PROCESS SAID HOLCROFT CONTINUES TO SUFFER FROM THE WEAK ECONOMY AS ITS CUSTOMERS PUT OFF SPENDING ON CAPITAL EQUIPMENT THERMO PROCESS SAID IT REDUCED HOLCROFT'S EXPENSES BY 40 IN FISCAL 1993 BY ELIMINATING 100 MOSTLY ENGINEERING POSITIONS IT NOW HAS A STAFF OF 150 THE COMPANY BEGAN OFFERING SERVICES TO REBUILD OLD FURNACES SINCE CUSTOMERS AREN'T BUYING AS MUCH NEW EQUIPMENT MOREOVER HOLCROFT IS ALSO OFFERING NEW FURNACES THAT PROCESS ALUMINUM PARTS AS MORE AUTOMOTIVE MANUFACTURERS SWITCH TO ALUMINUM RADIATORS FROM COPPER PARTS BECAUSE OF NEW FEDERAL REGULATIONS ON ENVIRONMENTAL SAFETY MR PLUNKETT SAID HE ADDED THAT HOLCROFT RECORDED AN OPERATING PROFIT DURING THE LATEST QUARTER COMPARED WITH AN OPERATING LOSS IN THE YEAREARLIER QUARTER THERMO PROCESS SAID THE DECONTAMINATION BUSINESS WHICH IT ENTERED IN 1989 NOW ACCOUNTS FOR 50 OF ITS QUARTERLY REVENUE COMPARED WITH 30 A YEAR AGO WE SEE OUR COMPANY EVOLVING INTO AN ENVIRONMENTAL SERVICES BUSINESS SAID MR PLUNKETT THE NUMBER OF CONTAMINATED SITES BEING DISCOVERED IS EXCEEDING THE NUMBER OF SITES ALREADY CLEANED MR PLUNKETT SAID THE COMPANY HOPES TO CONTINUE ITS CURRENT RATE OF EXPANSION ACQUIRING OR BUILDING ONE NEW DECONTAMINATION SITE EVERY QUARTER AT A COST OF 3 MILLION TO 6 MILLION A FACILITY 9307260088 930726 REVIEW & OUTLOOK EDITORIAL ASIDES DANNY NO CROOK CAUGHT IN THE THROES OF THE HOUSE POST OFFICE SCANDAL TAX NABOB DANNY ROSTENKOWSKI PROCLAIMED SATURDAY THAT HE IS NOT A CROOK HE DECLINED TO TAKE QUESTIONS FROM REPORTERS JUST IN CASE IT HAS ESCAPED ANYONE'S NOTICE HE HAS ALSO DECLINED TO TAKE QUESTIONS FROM A GRAND JURY SUBPOENAED A YEAR AGO TO TESTIFY ON THIS MATTER HE RESPONDED WITH A LETTER HUFFING ABOUT PROSECUTORIAL OVERREACHING AND CITING THE FIFTH AMENDMENT FOR THE PURPOSE OF WHETHER HE OUGHT TO GO TO JAIL THE WAYS AND MEANS CHAIRMAN IS PRESUMED INNOCENT AS HE POINTED OUT SATURDAY FOR THE PURPOSE OF WHAT WE SHOULD THINK OF THE GUY DECIDING HOW MUCH TO TAX US IF HE'S INNOCENT HE SHOULD TELL IT TO THE JUDGE OR AT LEAST THE GRAND JURY 9307260086 930726 LETTERS TO THE EDITOR CHRISTIAN COALITION STRICTLY NONPARTISAN IN A JUNE 17 ARTICLE ON ROSS PEROT AND UNITED WE STAND YOU DESCRIBED THE CHRISTIAN COALITION AS OPERATING OUTSIDE OF THE ELECTION LAWS THAT STATEMENT IS COMPLETELY FALSE CHRISTIAN COALITION IS A NONPARTISAN CITIZENS ORGANIZATION THAT DOES NOT ENDORSE CANDIDATES OR CONTRIBUTE TO CAMPAIGNS OUR ACTIVITIES ARE LIMITED TO NONPARTISAN CANDIDATE FORUMS AND NONPARTISAN VOTER GUIDES THESE EDUCATIONAL VOTER GUIDES SHOW WHERE ALL THE CANDIDATES STAND ON A BROAD RANGE OF ISSUES AFFECTING FAMILIES THEY ARE IN FULL COMPLIANCE WITH IRS GUIDELINES THEY NEITHER SUPPORT NOR OPPOSE ANY CANDIDATE AND SCRUPULOUSLY ABIDE BY STATE AND FEDERAL ELECTION LAWS 9307260084 930726 JAPAN'S LDP MEMBERS SQUABBLE AS NEW PARTIES NEAR AN ALLIANCE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE LIBERAL DEMOCRATIC PARTY'S PROSPECTS FOR HOLDING ON TO POWER IN JAPAN SEEM TO DIM DAILY AS PARTY MEMBERS CONTINUE TO FIGHT AMONG THEMSELVES AND NEW OPPOSITION GROUPS STEP CLOSER TO FORGING A RULING ALLIANCE SOME POLITICIANS AND ANALYSTS ARE EVEN BEGINNING TO QUESTION WHETHER THE LDP WHICH LOST ITS PARLIAMENTARY MAJORITY IN NATIONAL ELECTIONS JULY 18 CAN SUSTAIN ITSELF IN ITS CURRENT FORM A THEME RAISED ON ONE TELEVISION TALK SHOW YESTERDAY DOES THE LDP HAVE A FUTURE MEANWHILE TOKYO PROSECUTORS ARE STEPPING UP THEIR ATTACK ON AN IMPORTANT ELEMENT OF THE LDP'S POWER BASE THE PARTY'S LUCRATIVE RELATIONSHIP WITH THE CONSTRUCTION INDUSTRY ON FRIDAY PROSECUTORS ARRESTED ANOTHER VETERAN POLITICIAN ON SUSPICION OF TAKING BRIBES FROM CONTRACTORS THE LDP REMAINS JAPAN'S LARGEST PARTY AND PARTY LEADERS SAY THEY EXPECT TO LEAD THE NATION'S NEXT GOVERNMENT HOWEVER THE LDP'S BOSSES ARE PROVING SURPRISINGLY INEPT AT NAVIGATING JAPAN'S RAPIDLY CHANGING POLITICAL SCENE THE EVENTS OF THIS WEEK WILL BE CRUCIAL IN DETERMINING WHETHER LDP LEADERS CAN SALVAGE THE ROLE THEY HAVE HELD SINCE THE PARTY TOOK POWER IN 1955 TODAY LDP EXECUTIVES ARE SCHEDULED TO MEET TO DECIDE WHETHER THEY WILL ACCEPT A PLAN DRAFTED BY NEW OPPOSITION PARTIES TO OVERHAUL JAPAN'S ELECTORAL SYSTEM AND CURB CORPORATE POLITICAL CONTRIBUTIONS IT'S A TOUGH CHOICE IF THE LDP REFUSES IT MAY LOSE ANY CHANCE OF FINDING PARTNERS TO FORM A NEW GOVERNMENT IF THE LDP ACCEPTS IT WILL BE ENDORSING A PLAN THAT MANY PARTY MEMBERS COMPLAIN COULD PREVENT THE LDP FROM REGAINING A MAJORITY THE LEADERSHIP KILLED A SIMILAR PLAN LAST MONTH THAT MOVE FORCED A SPLIT IN THE LDP AND LED TO THE PARTY'S DEFEAT AT THE POLLS AS SOON AS WEDNESDAY THE SEVEN MAJOR ANTILDP PARTIES MAY MEET TO DISCUSS FORMING A COALITION GOVERNMENT THE SEVEN PARTIES HAVE ENOUGH VOTES AMONG THEM TO NAME A PRIME MINISTER AT THIS RATE A NONLDP COALITION WILL BE EASIER TO PUT TOGETHER THAN A COALITION WITH THE LDP MASAYOSHI TAKEMURA A LEADER OF A NEW OPPOSITION GROUP SAID YESTERDAY MR TAKEMURA'S GROUP HAD BEEN STRADDLING THE FENCE BETWEEN THE LDP AND THE ANTILDP CAMPS UNTIL LAST WEEK BUT IS NOW MOVING TOWARD JOINING THE OPPOSITION IT'S STILL UNCERTAIN HOWEVER WHETHER THE SEVEN ANTILDP PARTIES CAN SETTLE THE MANY DIFFERENCES THAT DIVIDE THEM AND FORGE A COALITION FRIDAY THE LDP IS SCHEDULED TO HOLD A PARTYWIDE ELECTION TO SELECT A NEW LEADER KIICHI MIYAZAWA SAID LAST WEEK HE WILL RESIGN AS PARTY PRESIDENT AND PRIME MINISTER TO TAKE RESPONSIBILITY FOR THE LDP'S TRAVAILS NORMALLY A SUCCESSOR WOULD BE CHOSEN BEHIND THE SCENES BY PARTY ELDERS BUT A GROUP OF YOUNG LDP MEMBERS REVOLTED LAST WEEK AND DEMANDED A MORE OPEN DEMOCRATIC SELECTION PROCESS FORCING THE UNUSUAL VOTE THE PARTY IS NOW DIVIDED OVER ITS CHOICE OF A LEADER SEVERAL OLDER LDP BOSSES INDICATE THEY WILL VIE FOR THE POST HAVING WAITED THEIR TURN UNDER THE PARTY'S COMPLEX SENIORITY SYSTEM BUT THE PARTY'S YOUNGER MEMBERS SAY THE OLD RULES NO LONGER APPLY WE ARE NOT SUPPORTING THEM 47YEAROLD SEIICHI OHTA THE LEADER OF A GROUP OF YOUNGER LDP MEMBERS SAID FRIDAY IN AN INTERVIEW THE PARTY'S LEADERS ARE PEOPLE OF THE PAST THEY ONLY KNOW HOW TO COLLECT MONEY AND CONTROL PEOPLE THEY DON'T KNOW HOW TO UNIFY THE PARTY SOME YOUNGER LEGISLATORS SAY THEY MAY BACK MR OHTA FOR PARTY LEADER ANOTHER THREAT TO THE OLD GUARD IS THE INVESTIGATION OF THE LINKS BETWEEN POLITICIANS AND CONSTRUCTION COMPANIES ON FRIDAY FUJIO TAKEUCHI THE LDPBACKED GOVERNOR OF IBARAKI PREFECTURE NEAR TOKYO WAS ARRESTED ON SUSPICION OF TAKING 10 MILLION YEN ABOUT 90000 IN BRIBES FROM CONTRACTORS MR TAKEUCHI DENIED THE ACCUSATION HE IS THE THIRD POLITICIAN ARRESTED ON SUSPICION OF TAKING BRIBES FROM CONSTRUCTION COMPANIES IN THE PAST MONTH MICHAEL WILLIAMS CONTRIBUTED TO THIS ARTICLE 9307260083 930726 DAVIDSON TO POST PROFIT REVENUE ABOVE FORECASTS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL TORRANCE CALIF DAVIDSON & ASSOCIATES INC EXPECTS TO REPORT SECONDQUARTER NET INCOME AND REVENUE SIGNIFICANTLY HIGHER THAN ANALYSTS' FORECASTS ROBERT M DAVIDSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MR DAVIDSON WHO DECLINED TO BE MORE SPECIFIC ABOUT NET INCOME SAID THAT THE LATEST QUARTER'S REVENUE WAS ABOUT 40 HIGHER THAN THE 98 MILLION OF THE 1992 SECOND PERIOD INDICATING REVENUE OF ABOUT 137 MILLION ANALYSTS HAD PROJECTED SECONDQUARTER NET INCOME OF ABOUT 700000 OR FOUR CENTS A SHARE ESTIMATES OF REVENUE RANGE FROM 122 MILLION TO 13 MILLION EARNINGS IN THE SECOND QUARTER OF 1992 WERE 453000 OR THREE CENTS A SHARE DAVIDSON MAKES AND MARKETS EDUCATIONAL SOFTWARE SELLING SUCH CHILDREN'S COMPUTER PROGRAMS AS MATH BLASTER AND KID WORKS ITS PRODUCTS INCREASINGLY USE INTERACTIVE FEATURES AND MULTIMEDIA PRESENTATION PUTTING THE COMPANY IN AN AREA OF ACTIVE INVESTOR INTEREST DAVIDSON COMPLETED AN INITIAL PUBLIC STOCK OFFERING ON MARCH 31 NETTING PROCEEDS OF 259 MILLION THE CHIEF EXECUTIVE DECLINED IN AN INTERVIEW TO MAKE SPECIFIC PROJECTIONS ABOUT FINANCIAL RESULTS FOR THE YEAR BUT SAID THE COMPANY IS ON TRACK TO MEET ANALYSTS' FORECASTS THAT NET INCOME WILL TOTAL ABOUT 64 MILLION OR 38 CENTS A SHARE ON REVENUE OF ABOUT 58 MILLION DAVIDSON HAS A STRONG SEASONAL PEAK IN THE THIRD AND FOURTH QUARTERS MAKING DETAILED PROJECTIONS DIFFICULT AT THIS TIME MR DAVIDSON NOTED NET INCOME LAST YEAR TOTALED 39 MILLION OR 26 CENTS A SHARE ON REVENUE OF 396 MILLION MR DAVIDSON INTERVIEWED WITH JEFFREY W BEAUMONT CHIEF FINANCIAL OFFICER AND TREASURER SAID THAT STRONG SECONDQUARTER RESULTS WERE ACHIEVED DESPITE THE ABSENCE OF A NEW SOFTWARE PRODUCT WHICH CAN BUOY PERFORMANCE BUT WITH STRONG RESULTS FROM THE COMPANY'S EDUCATIONAL RESOURCES LTD UNIT A WHOLESALER OF EDUCATIONAL SOFTWARE AND RELATED PRODUCTS SECONDQUARTER REVENUE WAS FLAT AT THE COMPANY'S FIRST BYTE UNIT THE OWNER OF PATENTED TEXTTOSPEECH TECHNOLOGY THAT IS USED IN VARIOUS DAVIDSON SOFTWARE AND LICENSED TO OUTSIDE COMPANIES REVENUE DECLINED IN THE LATEST PERIOD FROM THE COMPANY'S MANUFACTURING OPERATIONS FOR THIRDPARTY SOFTWARE PRODUCERS THE EXECUTIVES NOTED THAT THE COMPANY HAS A SLATE OF NEW PROGRAMS TO BE INTRODUCED LATER THIS YEAR WHICH ARE EXPECTED TO BOOST OVERALL SALES FURTHER IN TOTAL DAVIDSON PLANS TO MARKET NINE NEW PROGRAMS OF ITS OWN THIS YEAR THE INTRODUCTION OF AFFILIATED PROGRAMS DESIGNED BY OTHERS BUT SOLD THROUGH DAVIDSON WILL BRING THE TOTAL OF NEW TITLES TO ABOUT 40 MR DAVIDSON SAID 9307260082 930726 BUSINESS BRIEF ROCKEFELLER CENTER PROPERTIES INC NET IN 2ND PERIOD ROSE 83 ON GAIN FROM SECURITIES SALE ROCKEFELLER CENTER PROPERTIES INC'S SECONDQUARTER PROFIT INCREASED 83 ON ONETIME GAINS OF 27 MILLION FROM THE SALE OF SECURITIES WITHOUT GAIN FROM THE SALE OF SECURITIES THE REAL ESTATE INVESTMENT COMPANY'S SECONDQUARTER PROFIT WOULD HAVE FALLEN 20 ROCKEFELLER CENTER EARNED 104 MILLION OR 28 CENTS A SHARE COMPARED WITH 96 MILLION OR 25 CENTS A SHARE A YEAR EARLIER REVENUE FELL 9 TO 277 MILLION FROM 305 MILLION ROCKEFELLER CENTER STOCK GAINED 125 CENTS TO CLOSE AT 7125 A SHARE IN NEW YORK STOCK EXCHANGE TRADING ON FRIDAY 9307260081 930726 DANGER AHEAD POSSIBLE LOSS OF LOPEZ MAY ADD TO THE WOES AFFLICTING VOLKSWAGEN INEFFICIENT GERMAN CAR FIRM BADLY NEEDS THE SERVICES OF THE NOTED COSTCUTTER A STEEP SLIDE IN US MARKET BY JOSEPH B WHITE AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL THE HIGHPOWERED CAREER OF VOLKSWAGEN AG'S PRODUCTION CHIEF JOSE IGNACIO LOPEZ DE ARRIORTUA SEEMS TO BE CAREENING TOWARD A CLIFF AND THAT MAY AGGRAVATE THE WOES AT EUROPE'S LARGEST AUTO MAKER VW AND MR LOPEZ ITS CELEBRATED COSTCUTTING GURU HAVE HAD A TOUGH YEAR IT GOT OFF TO A ROUGH START IN APRIL WHEN NEWLY INSTALLED CHAIRMAN FERDINAND PIECH ANNOUNCED A FIRSTQUARTER LOSS OF 125 BILLION MARKS 773 MILLION AND DECLARED THAT VW WOULD UNLEASH A CRASH COMPETITIVENESS PROGRAM THAT WOULD SLASH 36000 OF THE COMPANY'S 276000 JOBS WORLDWIDE IN A TOUGH SPEECH MR PIECH ACKNOWLEDGED THAT VW'S BLOATED COSTS AND UNPRODUCTIVE FACTORIES HAD LED TO A CRISIS BUT RIGHT NOW MR PIECH FACES A CRISIS OF AN ENTIRELY DIFFERENT KIND IT BEGAN AS WHISPERED ACCUSATIONS THAT MR LOPEZ AND SEVERAL ASSOCIATES HAD TAKEN SECRET INFORMATION WITH THEM WHEN THEY ABRUPTLY BOLTED TO VW LAST MARCH FROM GENERAL MOTORS CORP BY LAST FRIDAY THE WHISPERING HAD EXPLODED INTO A SCANDAL WITH GM ACCUSATIONS OF INDUSTRIAL ESPIONAGE REPORTS OF BUNGLED DOCUMENT SHREDDING AND IMAGES OF GUMSHOES AND REPORTERS ABOUT TO HOUND MIGHTY MEN FROM POWER AMID ALL THIS TURMOIL VW MUST FIGURE OUT HOW TO SAVE MR LOPEZ'S COSTCUTTING PROGRAM EVEN IF HE HIMSELF CAN'T BE SAVED NOT ONLY IS VW'S FUTURE AT RISK BUT SO ARE A MAJOR SLICE OF THE GERMAN ECONOMY AND KEY ELEMENTS OF EUROPE'S HOPES FOR REVITALIZING THE FORMER COMMUNIST BLOC VW HAS PLEDGED BILLIONS OF MARKS TO SALVAGE THE CZECH AUTO MAKER SKODA AND TO EXPAND PRODUCTION IN THE FORMER EAST GERMANY ON SUNDAY OFFICIALS OF VW AND THE GERMAN STATE OF LOWER SAXONY VW'S LARGEST SINGLE SHAREHOLDER WITH A 20 STAKE CONTINUED TO STAND BY MR LOPEZ FOLLOWING MEETINGS FRIDAY BETWEEN LOWER SAXONY MINISTER PRESIDENT GERHARD SCHROEDER AND VW CHAIRMAN PIECH AND A SEPARATE MEETING OF MR PIECH AND KEY MEMBERS OF VW'S SUPERVISORY BOARD SPOKESMEN FOR VW AND LOWER SAXONY WOULDN'T COMMENT ON THE MEETINGS WHICH CAME LESS THAN A DAY AFTER GERMAN PROSECUTORS LINKED MR LOPEZ TO A CACHE OF SECRET GM DOCUMENTS THE DOCUMENTS WERE FOUND IN THE WIESBADEN APARTMENT OF A FORMER GM COLLEAGUE OF MR LOPEZ WHO HAD FOLLOWED HIM TO VW GERMAN PROSECUTORS ARE INVESTIGATING SO IS THE US JUSTICE DEPARTMENT NO CHARGES HAVE BEEN FILED AGAINST MR LOPEZ OR ANYONE ELSE BUT EVEN AS VW AND LOWER SAXONY OFFICIALS PLAYED DOWN THE PROSECUTORS' FINDINGS THE UNQUALIFIED DECLARATIONS OF SUPPORT THAT MR PIECH AND VW OFFICIALS OFFERED MR LOPEZ IN JUNE ARE GIVING WAY TO MORE CONDITIONAL STATEMENTS AT THE PRESENT TIME A VW SPOKESMAN SAID SUNDAY WE SEE NO REASON TO PART WITH MR LOPEZ SAID A SPOKESMAN FOR PRESIDENT SCHROEDER THE WHOLE PROCEEDINGS ARE EXTRAORDINARILY UNPLEASANT AND ARE DAMAGING TO VW'S REPUTATION CERTAINLY NO ONE IS SMILING AROUND HERE THE DISMAY SEEMS DESTINED TO INTENSIFY AN EDITORIAL IN THE CONSERVATIVE FRANKFURTER ALLGEMEINE ZEITUNG ON SATURDAY URGED STATE OR FEDERAL OFFICIALS TO PUT A STOP TO THE SPECTACLE BEFORE THE REPUTATION OF ONE OF THE LARGEST AND MOST RENOWNED GERMAN INDUSTRIAL COMPANIES IS IRREPARABLY DAMAGED A PUBLIC OPINION POLL BY THE DORTMUND FORSA INSTITUTE FOUND THAT 65 OF 1000 PEOPLE SURVEYED BELIEVED THAT THERE WAS SOMETHING TO THE ACCUSATIONS AGAINST MR LOPEZ ONLY 7 DIDN'T BELIEVE THE ACCUSATIONS AND TODAY'S EDITIONS OF THE GERMAN NEWSMAGAZINE DER SPIEGEL ARE EXPECTED TO CARRY A DETAILED ACCOUNT OF HOW TWO LOPEZ ASSOCIATES JORGE ALVAREZ AND ROSARIO PIAZZA BOTCHED EFFORTS TO SHRED PURLOINED GM DOCUMENTS BEFORE POLICE FOUND THEM GERMAN PROSECUTORS CONFIRM ONLY THAT THEY SUSPECT SOME GM DOCUMENTS HAVE BEEN DESTROYED MESSRS ALVAREZ AND PIAZZA THROUGH LAWYERS AND VW SPOKESMEN DENY ANY WRONGDOING IN GERMAN INDUSTRIAL AND POLITICAL CIRCLES MR PIECH'S MEETINGS FRIDAY WERE SEEN AS A SIGN THAT MR LOPEZ EVENTUALLY WILL BE SACRIFICED TO QUELL THE EMBARRASSING UPROAR AND SOME ANALYSTS DOUBT THAT MR PIECH HIMSELF WILL SURVIVE MR PIECH HAS CHOSEN HIM AND IF MR LOPEZ WILL FAIL I FEAR THAT MR PIECH WILL FAIL TOO SAYS UDO KOPPELMANN DIRECTOR OF THE SEMINAR FOR BUSINESS ADMINISTRATION ACQUISITION AND PRODUCT POLICY AT THE UNIVERSITY OF COLOGNE TO BE SURE MR PIECH AND MR LOPEZ ARE DETERMINED MEN WHO COULD CONFOUND CONVENTIONAL WISDOM BY SURVIVING THE CRIMINAL INVESTIGATIONS AND MEDIA HURLYBURLY SOME INDUSTRY OBSERVERS CONTEND THAT MR PIECH AND THE VW BOARD WILL DO WHATEVER IT TAKES TO AVERT A PARALYZING CRISIS AND THEN WILL GET ON WITH THEIR RECONSTRUCTION EFFORTS SHOULD MR LOPEZ HAVE TO LEAVE MR PIECH WILL TAKE ACTION QUICKLY TO PRESERVE HIS OWN STANDING IN THE COMPANY SAYS ROBERT BAUMRUK MANAGING PARTNER OF EGON ZEHNDER EUROPE'S LARGEST EXECUTIVESEARCH GROUP HE'LL BE ABLE TO BEAT HIS CHEST THREE TIMES AND SAY A FEW MEA CULPAS' AND TRY TO GET ON WITH IT HOWEVER THE CONTROVERSY CLEARLY HAS DONE LITTLE TO HELP VW RECOVER FROM THE POUNDING OF GLOBAL COMPETITION AND A DEEPENING EUROPEAN RECESSION THE COMPANY'S FIRSTQUARTER LOSS LEFT NO DOUBT THAT IT IS SADDLED WITH SOME OF THE AUTO INDUSTRY'S MOST INEFFICIENT OPERATIONS MAINLY IN THE HUGE COMPLEX AROUND ITS HEADQUARTERS IN WOLFSBURG GERMANY FIXING VW AND PARTICULARLY WOLFSBURG WOULD BE A HERCULEAN TASK EVEN WITH STABLE LEADERSHIP BUT MR PIECH HAS OUSTED SIX OF 10 MANAGING BOARD MEMBERS SINCE TAKING POWER IF HE AND MR LOPEZ NOW FALL VW WOULD FACE A SEVERE DEARTH OF LEADERSHIP ANALYSTS SAY THE CHANGES NEEDED AT VW ARE GREATER THAN EVEN PIECH ADMITS AND LOPEZ AND PIECH ARE VW'S BEST BET SAYS DANIEL JONES PROFESSOR OF MOTORINDUSTRY MANAGEMENT AT THE CARDIFF BUSINESS SCHOOL IN WALES VW'S DISASTROUS EXPERIENCE IN NORTH AMERICA IN RECENT YEARS UNDERSCORES THE COMPANY'S PROBLEMS IN COMPETING IN A NOHOLDSBARRED ARENA IN EUROPE WHERE VW IS COMFORTABLY NO 1 WITH 17 OF THE CAR MARKET JAPANESE COMPETITION HAS LONG BEEN SHARPLY LIMITED BY IMPORT BARRIERS AND VOLUME RESTRAINTS BUT IN THE US JAPANESE CAR MAKERS AND INCREASINGLY STIFF COMPETITION FROM DOMESTIC COMPANIES HAVE DRIVEN VW ALMOST OFF THE ROAD LAST YEAR THE COMPANY WHOSE BEETLE OPENED THE AMERICAN MARKET TO A SIGNIFICANT NUMBER OF AUTO IMPORTS ACCOUNTED FOR JUST 06 OF THE US VEHICLE SALES AND IN THIS YEAR'S FIRST HALF VW SALES WERE OFF A RUINOUS 48 TO JUST 21213 CARS AND TRUCKS A NEARLY INVISIBLE 03 MARKET SHARE THAT IS A FAR CRY FROM VW'S PEAK OF 67 IN 1970 WHEN IT WAS THE NO 1 US AUTO IMPORTER CLEARLY VW IS STRUGGLING TO AVOID BEING CHASED OUT OF THE US ALTOGETHER AS PSA PEUGEOT CITROEN RENAULT AND FIAT SPA HAVE BEEN VW HOPES THE RECENT AMERICAN INTRODUCTION OF ITS THIRDGENERATION SUBCOMPACT GOLF HATCHBACK AND RELATED JETTA SEDAN WILL HELP TO TURN THINGS AROUND IN THE US WE ARE EXCITED AND VERY PROUD OF THESE CARS DECLARES TOM SHAVER THE HEAD OF VW'S US SALES UNIT YET JUDGING BY THE CARS' PRESS INTRODUCTION LAST WEEK IN SANTA MONICA CALIF THEY MAY NOT BE UP TO THE TASK TRUE THE GOLF AND ITS SEDAN SISTER KNOWN IN EUROPE AS THE VENTO DEBUTED TO RAVE REVIEWS ON THE CONTINENT IN 1991 AND HAVE BEEN A RUNAWAY SALES SUCCESS THERE BUT IN THE US THE CARS WILL BE GOING UP AGAINST STIFF COMPETITION COMPARED WITH THE LIKES OF THE TOYOTA COROLLA THE NISSAN SENTRA AND GM'S SATURN THE NEW VWS COME OFF AS RATHER HOHUM EVEN THOUGH VW DID GO TO THE TROUBLE OF EQUIPPING THE AMERICAN VERSIONS WITH SEVEN CUPHOLDERS FOR FIVE SEATS AUTOMOTIVE JOURNALISTS LAST WEEK FOUND MODELS EQUIPPED WITH AUTOMATIC TRANSMISSIONS HANDLED WELL BUT WERE SLUGGISH COMPARED WITH RIVAL CARS VW IS OFFERING THE NEW GOLF FOR 11600 149 HIGHER THAN THE OLD GOLF AND THE NEW JETTA FOR 12800 UP 109 THOSE PRICES WHICH WILL RISE AGAIN THIS FALL WHEN VW ADDS DUAL AIR BAGS DON'T APPEAR TO BE OUT OF LINE WITH THE CARS' MAIN COMPETITORS BUT THE CARS ARE SADDLED WITH VW'S POOR REPUTATION FOR QUALITY IN THE US IN THIS YEAR'S INFLUENTIAL JD POWER INITIAL QUALITY STUDY VW RANKED DEAD LAST FOR THE ENTIRE AUTO INDUSTRY WITH AN AVERAGE OF 226 PROBLEMS PER VEHICLE THE INDUSTRY AVERAGE WAS 107 QUALITY AND LABOR PROBLEMS AT VW'S MEXICAN ASSEMBLY PLANT HAVE BEEN SO BAD THAT VW DELAYED THE GOLF'S US INTRODUCTION BY NEARLY A YEAR SPRAWLING AND INEFFICIENT VW HAD TO RUN ITS FACTORIES AT MORE THAN 100 OF CAPACITY JUST TO BREAK EVEN LAST YEAR DESPITE A 12 RISE IN SALES TO 854 BILLION MARKS EARNINGS COLLAPSED 87 TO JUST 147 MILLION MARKS IN 1992 MR PIECH RECENTLY SAID THAT BECAUSE OF COSTCUTTING AND PRODUCTION ENHANCEMENT WE'RE RAPIDLY HEADING TO A BREAKEVEN RATE BELOW 90 BUT THAT WOULD STILL LEAVE THE COMPANY AT A CONSIDERABLE DISADVANTAGE EVEN AGAINST ITS EUROPEAN RIVALS SOME OF WHICH HAVE BREAKEVEN POINTS BELOW 70 SO ALTHOUGH THE GOLF HAS BEEN EUROPE'S BESTSELLING CAR VW PROBABLY ISN'T MAKING MONEY ON IT ALTHOUGH INDUSTRY ANALYSTS AREN'T SURE ABOUT THAT THE GOLF PROGRAM'S TROUBLES ARE EXACTLY THE SORT OF ILLS THAT VW'S MR PIECH HIRED MR LOPEZ TO CURE BUT THEY NOW ARE ENSNARED IN THE BIZARRE DRAMA LAUNCHED WHEN GM ACCUSED MR LOPEZ AND HIS ASSOCIATES OF BOOTLEGGING CONFIDENTIAL FUTURE PRODUCT PLANS AND DATA ON SUPPLIERS AND PARTS COSTS OUT OF GM AND ITS GERMAN UNIT ADAM OPEL AG VW OFFICIALS DENY RECEIVING ANY CONFIDENTIAL GM INFORMATION AND SUGGEST THAT VW WOULDN'T HAVE ANY USE FOR IT BUT THE DOCUMENTS THAT GERMAN PROSECUTORS SAY THEY FOUND IN THE WIESBADEN APARTMENT CLEARLY COULD HELP A GM RIVAL THEY SAY THE DOCUMENTS CONTAIN DETAILED INFORMATION ABOUT GM'S FUTURE PRODUCTS AND PURCHASING COSTS SUCH DATA COULD SAVE A COMPETITOR BILLIONS OF DOLLARS AND YEARS OF PRODUCTDEVELOPMENT TIME VW OFFICIALS ARE SCRAMBLING TO DISPEL THE GLOOM CAUSED BY THE LOPEZ CONTROVERSY AND THE COMPANY'S POOR COMPETITIVE POSTURE ONE TACK HAS BEEN TO SUGGEST NOT SO SUBTLY THAT MR LOPEZ ISN'T INDISPENSABLE LOPEZ ISN'T DOING EVERYTHING HERE HIMSELF A VW SPOKESMAN SNAPPED IN ADDITION COMPANY OFFICIALS INCLUDING MR PIECH INSIST THAT VW WILL STAGE A TURNAROUND IN THE 1993 SECOND HALF AND BREAK EVEN FOR THE YEAR AS A WHOLE IN 1994 THEY SAY THE COMPANY WILL EDGE BACK TO PROFITABILITY ACCORDING TO FINANCE CHIEF WERNER SCHMIDT MEASURES TO SQUEEZE OUT 87 BILLION MARKS OF SAVINGS THIS YEAR ALREADY HAVE LARGELY BEEN BROUGHT ON LINE AND WITH A LITTLE BIT OF LUCK SALES COULD REACH 80 BILLION MARKS THIS YEAR THE COMPANY HAS ANNOUNCED THAT BY THE END OF NEXT YEAR ITS GERMAN OPERATIONS WILL HAVE ONLY 100000 EMPLOYEES DOWN 15 FROM 118000 AT THE END OF LAST YEAR THE WORLDWIDE EMPLOYEE RANKS OF 276000 WILL BE CUT TO 240000 BY THE END OF 1997 A 13 DROP FROM LAST DEC 31 BUT WHETHER VW'S PROGRAM GOES FAR ENOUGH ISN'T CLEAR ESPECIALLY AMID PLUNGING AUTO SALES AND A EUROPEAN RECESSION ANALYSTS ESTIMATE THAT VW'S FACTORIES PARTICULARLY THE 60000EMPLOYEE WOLFSBURG COMPLEX ARE ROUGHLY 30 LESS EFFICIENT THAN JAPANESE PLANTS GM'S NORTH AMERICAN OPERATIONS FACED WITH A SIMILAR LABORPRODUCTIVITY GAP AIM TO ELIMINATE ROUGHLY A THIRD OF THEIR PRODUCTION JOBS OVER THE NEXT FIVE YEARS MOREOVER THERE'S A QUESTION OF HOW MUCH VW'S SUPPLIERS WILL BE WILLING TO HELP OUT ONE OF MR LOPEZ'S STRENGTHS AT GM WAS HIS RESOLVE TO SQUEEZE COSTS OUT OF THE SUPPLY CHAIN AT VW HE OUTLINED PLANS TO SLASH THE NUMBER OF SUPPLIERS TO JUST 100 PRIME SUPPLIERS FROM THE CURRENT 1500 VENDORS BUT SUPPLIERS WERE BALKING EVEN BEFORE MR LOPEZ'S CREDIBILITY CAME UNDER FIRE EARLIER THIS SUMMER A GROUP OF GERMAN SUPPLIER EXECUTIVES COMPLAINED ABOUT MR LOPEZ TO MR SCHROEDER THEORETICALLY LOPEZ CAN PROBABLY HAVE ALL THE POLICIES AND PROCEDURES FOR RESTRUCTURING VW FROM TOP TO BOTTOM IN PLACE WITHIN SIX MONTHS' TIME SAYS MR BAUMRUK THE EXECUTIVESEARCH OFFICIAL BUT UNTIL A TANKER LIKE VW HAS TURNED ITSELF AROUND YOU NEED LOPEZ IN PLACE FOR AT LEAST TWO TO THREE YEARS' TIME FOR IMPLEMENTATION CLOSE OBSERVERS NOTE THAT MR LOPEZ HAS BEEN BUSILY PURSUING COSTCUTTING MEASURES DESPITE THE ACCUSATIONS AGAINST HIM BUT INVESTORS HAVE BECOME WARY RECENTLY AT THE BEGINNING OF THE YEAR VW STOCK WAS TRADING AT A MERE 240 MARKS ON THE FRANKFURT STOCK EXCHANGE WITH THE ADVENT OF THE PIECHLOPEZ REGIME THE STOCK CLIMBED AS HIGH AS 37650 MARKS ON FRIDAY VW SHARES CLOSED AT 345 MARKS DOWN 32 MARKS ON THE DAY AS TRADERS WORRIED THAT THE LOPEZ BONUS WOULD COLLAPSE THE DISMAY AMONG GERMAN INVESTORS MAY WELL BE A DECISIVE FACTOR IN WHETHER VW'S SUPERVISORY BOARD CONTINUES TO SUPPORT MR LOPEZ BUT THE MARKET'S JITTERS ALSO AMOUNT TO A BACKHANDED TESTIMONIAL TO HIS EFFECTIVENESS AND TO HOW MUCH VW WILL MISS HIM IF HE ULTIMATELY GOES NOW ONE FRANKFURT TRADER SAYS THE PHILOSOPHY IS SELL FIRST AND SEE WHAT HAPPENS LATER KRYSTAL MILLER CONTRIBUTED TO THIS ARTICLE 9307260080 930726 BUSINESS BRIEF GTE CORP CALIFORNIA UNIT AND UNION REACH CONTRACT SETTLEMENT GTE CORP SAID ITS GTE CALIFORNIA UNIT REACHED AN AGREEMENT WITH THE COMMUNICATIONS WORKERS OF AMERICA TO PROVIDE WAGE INCREASES OF ABOUT 10 FOR MOST OF THE UNIT'S 12000 HOURLY EMPLOYEES THE CONTRACT EXPIRES MARCH 17 1996 THE WAGE INCREASES ARE STAGGERED OVER THE 39MONTH PERIOD A 4 PAY RAISE IS RETROACTIVE TO DEC 18 1992 FOLLOWED BY 3 RAISES IN BOTH MARCH 1994 AND MARCH 1995 ALSO THE AGREEMENT FOR THE FIRST TIME ALLOWS HOURLY EMPLOYEES TO RECEIVE INCENTIVE COMPENSATION OF AS MUCH AS 18 IN 1995 AND 3 IN 1996 GTE SAID THE PACT ALSO ALLOWS SOME CRAFT WORKERS TO START THEIR WORKDAY FROM THEIR HOMES INSTEAD OF A COMPANY SITE GTE IS A STAMFORD CONN TELECOMMUNICATIONS COMPANY 9307260079 930726 TECHNOLOGY MEDCO SIGNS ABBOTT TO MANUFACTURE DRUG PLANS NEW FDA FILING LOS ANGELES ABBOTT LABORATORIES HAS AGREED TO MAKE MEDCO RESEARCH INC'S DRUG INTENDED AS AN ALTERNATIVE TO TREADMILL TESTS FOR DETECTING HEART DISEASE THE AGREEMENT IS AN IMPORTANT STEP FOR MEDCO WHICH HAS BEEN DEALT SOME SETBACKS WITH REGARD TO ITS ADENOSCAN DRUG WHICH PRODUCT ANALYSTS SAY IS CRITICAL TO THE COMPANY'S FUTURE MEDCO EARLIER THIS YEAR TERMINATED ITS LICENSE AGREEMENT FOR THE NEW DRUG WITH JAPAN'S FUJISAWA PHARMACEUTICAL CO CLAIMING IN A LAWSUIT THAT THE FOOD AND DRUG ADMINISTRATION HADN'T APPROVED THE DRUG FOR COMMERCIAL SALE BECAUSE OF PROBLEMS AT FUJISAWA MEDCO DEVELOPED THE ADENOSCAN DRUG AND GRANTED FUJISAWA RIGHTS TO MANUFACTURE AND MARKET IT IN THE US AND CANADA UNDER THE NEW AGREEMENT WITH ITS NEW PARTNER HOWEVER ABBOTT WILL MANUFACTURE THE DRUG BUT MEDCO WILL RETAIN MARKETING RIGHTS ABBOTT IS A HEALTHCARE PRODUCTS MAKER BASED IN ABBOTT PARK ILL A MEDCO SPOKESMAN SAID THE COMPANY WILL AMEND ITS NEW DRUG APPLICATION WITH THE FDA TO INCLUDE ABBOTT AS THE MANUFACTURER MEDCO FILED ITS APPLICATION FOR ADENOSCAN WITH THE FDA IN FEBRUARY 1990 AND HAD EXPECTED THE GREEN LIGHT TO COME SOMETIME LAST YEAR ANALYSTS HAVE SAID 9307260078 930726 PATIENTS WANT THEIR DOCTORS NEARBY BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SUE GOLDEN IS INSISTENT ABOUT THE RIGHT TO CHOOSE HER DOCTOR HERE ARE HER CRITERIA INITIALLY I DO IT ON HOW CLOSE THEY ARE TO THE OFFICE EXPLAINS MS GOLDEN A LAWYER SECONDLY I HAVE A 15MINUTE RULE WHICH THE STAFF MUST ABIDE BY I TELL THEM IF YOU ARE RUNNING 15 MINUTES BEHIND YOU ARE TO CALL ME I CAN SPEND THE TIME IN MY OFFICE AND GET WORK DONE THIRD I HAVE TO FEEL AT LEAST SOMEWHAT COMFORTABLE WITH THE DOCTOR IF I FEEL THEY ARE TALKING DOWN TO ME AND PATERNALISTIC I GO HAYWIRE THE RIGHT TO CHOOSE ONE'S DOCTOR IS EMERGING AS ONE OF THE ISSUES INVOLVED IN THE HEALTHCARE PLAN PRESIDENT CLINTON IS PREPARING TO UNVEIL THIS FALL LIKE MS GOLDEN MANY PEOPLE MAKE THEIR SELECTION NOT ON ANY HARD KNOWLEDGE ABOUT A PHYSICIAN'S EXPERTISE BUT ON OTHER CRITERIA CONVENIENCE THE RECOMMENDATIONS OF FRIENDS RELATIVES OR COWORKERS EVEN THE GENDER OF THE PHYSICIAN A RECENT POLL CONDUCTED FOR THE ROBERT WOOD JOHNSON FOUNDATION ASKED PEOPLE TO PICK THE FACTORS THAT ARE MOST IMPORTANT IN SELECTING THEIR DOCTORS THE TOP TWO WERE 1 THE DOCTOR WAS RECOMMENDED BY A RELATIVE OR FRIEND AND 2 THE DOCTOR'S OFFICE WAS CONVENIENTLY LOCATED DOUG JORDAN A LAWYER WITH THE FEDERAL GOVERNMENT USED BOTH THOSE CRITERIA YEARS AGO HE ASKED A FRIEND AT WORK HAVE YOU GOT A DOCTOR YOU LIKE THE RECOMMENDED PHYSICIAN WAS ALSO CLOSE TO WHERE I WORK WHICH IS A GOOD BASIS TO TRY A DOCTOR MR JORDAN SAYS ADDING I WAS VERY PLEASED WITH THE SERVICE I GOT NOW HE PAYS EXTRA TO GO TO THIS DOCTOR WHO ISN'T INCLUDED IN HIS EMPLOYER HEALTH PLAN'S NETWORK OF PHYSICIANS PEOPLE SEEM TO DO FAR MORE EXTENSIVE RESEARCH WHEN CHOOSING SPECIALISTS FOR EXAMPLE WHEN MARGERY TELLER A COMMODITIES TRADER IN CHICAGO RECENTLY FOUND SHE HAD TO HAVE BACK SURGERY SHE CALLED THE NATIONAL SCOLIOSIS FOUNDATION AND ASKED WHO'S THE BEST DOCTOR IN CHICAGO THE GROUP GAVE HER TWO NAMES SHE VISITED BOTH IN THE END I WENT TO THE DOCTOR I FELT I HAD THE BEST RAPPORT WITH MS TELLER SAYS MANY IN THE US LACK ANY CHOICE IN THE MATTER THERE ARE 37 MILLION PEOPLE WITH NO HEALTH INSURANCE AT ALL 268 MILLION IN MEDICAID THE FEDERALSTATE HEALTH PROGRAM FOR THE POOR WHICH MANY DOCTORS REFUSE TO PARTICIPATE IN ABOUT 37 MILLION PRIVATELY PAYING PEOPLE IN HEALTHMAINTENANCE ORGANIZATIONS AND ABOUT 177 MILLION IN PREFERREDPROVIDER ORGANIZATIONS THAT COMES TO 1185 MILLION OR ALMOST 48 OF THE POPULATION ROBERT BLENDON OF THE HARVARD SCHOOL OF PUBLIC HEALTH SAYS THERE ARE ONLY THREE ISSUES THAT CAN SINK A NATIONAL HEALTH PLAN IT CAN COST YOU TOO MUCH THEY CAN TAKE YOUR DOCTOR AWAY AND IT CAN COST THOUSANDS OF JOBS NEW YORK TIMES COLUMNIST RUSSELL BAKER CHUCKLED OVER THE DOCTOROFCHOICE ISSUE IN A RECENT PIECE LIKE EVERYONE ELSE IN AMERICA I WANT THE RIGHT TO CHOOSE MY OWN DOCTOR HE WROTE WHAT I'D LIKE FROM THE GOVERNMENT HOWEVER IS SOME GOOD ADVICE ON HOW TO DO IT IN FACT MR BAKER WENT ON TO OBSERVE HOW OFTEN DO YOU HEAR A PATIENT SPEAK ILL OF HIS OWN DOCTOR IN TRYING TO CHOOSE A DOCTOR FROM AMONG THOSE TREATING YOUR FRIENDS IT SEEMED YOU COULDN'T GO WRONG PICKING ONE AT RANDOM SEE RELATED STORY HEALTH DOCTORS LOBBY PATIENTS IN A CAMPAIGN TO SHAPE CLINTON HEALTHCARE PACKAGE WSJ JULY 26 1993 9307260077 930726 BUSINESS BRIEF BOATMEN'S PLANS SWAP TO BUY FIRST AMARILLO FOR 1774 MILLION ST LOUIS BOATMEN'S BANCSHARES INC SAID IT AGREED TO ACQUIRE FIRST AMARILLO BANCORP OF AMARILLO TEXAS IN A STOCK EXCHANGE CURRENTLY VALUED AT ABOUT 1774 MILLION THE BANK HOLDING COMPANY SAID IT WILL EXCHANGE 0456 SHARES OF ITS COMMON STOCK FOR EACH SHARE OF FIRST AMARILLO'S 63 MILLION SHARES OUTSTANDING BASED ON BOATMEN'S 6175 CLOSING PRICE IN NATIONAL OVERTHECOUNTER TRADING FRIDAY THE EXCHANGE RATIO WOULD PROVIDE FIRST AMARILLO SHAREHOLDERS WITH STOCK VALUED AT 2816 A SHARE ON FRIDAY TRADING WAS HALTED IN FIRST AMARILLO SHARES IN ADVANCE OF THE DISCLOSURE THE LAST TRADE WAS AT 20 BOATMEN'S SAID FIRST AMARILLO WHICH HAS 800 MILLION IN ASSETS IS A GOOD STRATEGIC FIT FIRST AMARILLO PROVIDES A KEY LOCATION ALONG INTERSTATE 40 IN THE TEXAS PANHANDLE BETWEEN OKLAHOMA CITY AND ALBUQUERQUE NM WHERE BOATMEN'S ALREADY HAS A SUBSTANTIAL PRESENCE THE COMPANY SAID IN THE SECOND QUARTER OF 1993 FIRST AMARILLO EARNED 35 MILLION OR 53 CENTS A SHARE THE ACQUISITION IS SUBJECT TO APPROVAL BY FIRST AMARILLO'S SHAREHOLDERS AS WELL AS GOVERNMENT CLEARANCE BOATMEN'S HAS ASSETS OF 246 BILLION 9307260075 930726 CREDIT MARKETS SMALL DEALS IN JUNK ARE ON THE RISE SALES ATTRACT BUYERS BUT CREATE CONCERNS OVER ISSUES' LIQUIDITY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THESE DAYS SIZE ISN'T EVERYTHING IN THE JUNK BOND MARKET NEW ISSUANCE OF SMALL JUNK BOND DEALS IS HITTING RECORD LEVELS CAUSING SOME CONSTERNATION AMONG ANALYSTS WHO WONDER IF INVESTORS' STANDARDS MAY BE SLIPPING A SMALL DEAL IS ONE BELOW 100 MILLION THIS IS THE MOST WORRISOME TREND IN THE HIGHYIELD MARKET SAYS MARTIN S FRIDSON MANAGING DIRECTOR OF HIGHYIELD RESEARCH AT MERRILL LYNCH & CO HISTORICALLY HE SAYS SMALLER JUNK BOND ISSUES DON'T TRADE AS WELL AS THEIR LARGER KIN PRICES OF SMALLER ISSUES TEND TO FALL MORE PRECIPITOUSLY WHEN INTEREST RATES RISE JUNK IS HIGHYIELD HIGHRISK DEBT WITH LOW CREDIT RATINGS OR NONE AT ALL DIMINUTIVE DEBT OFFERINGS REPRESENTED NEARLY ONE IN THREE NEW JUNK DEALS IN THE FIRST SIX MONTHS OF 1993 ACCORDING TO MR FRIDSON THE HIGHEST PROPORTION SINCE 1986 THAT IS A REVERSAL FROM THE LATE 1980S WHEN THE NEWISSUE JUNK CALENDAR WAS BLOATED BY HUGE ACQUISITIONRELATED OFFERINGS BY THEIR VERY NATURE THESE SMALLER ISSUES DON'T TEND TO ATTRACT THE FOCUS OF RESEARCH FROM ANALYSTS SAYS KINGMAN PENNIMAN DIRECTOR OF HIGHYIELD RESEARCH AT DUFF & PHELPS/MCM HOLDERS HAVE MORE CONFIDENCE WHEN SEVERAL WALL STREET FIRMS COVER AN ISSUE OR WHEN THERE ARE ALTERNATIVES TO THE ISSUE'S UNDERWRITER FOR INFORMATION ABOUT THE CREDIT IN THE FIRST SIX MONTHS OF THE YEAR COMPANIES SEEKING 100 MILLION OR LESS IN A JUNK BOND SALE RAISED 42 BILLION IN PUBLIC AND PRIVATELY PLACED OFFERINGS ACCORDING TO DUFF & PHELPS/MCM SUCH SMALL FRY ARE A LONG WAY FROM TAKING OVER THE MARKET THEY ACCOUNTED FOR ONLY ABOUT 13 OF THE 342 BILLION IN TOTAL JUNK OFFERINGS THROUGH JUNE YET THIS IS BY FAR THE MOST MONEY EVER RAISED BY SMALLSCALE OFFERINGS IN SIX MONTHS ACCORDING TO DATA ON NEW ISSUES FROM SECURITIES DATA CO A PROVIDER OF INVESTMENT RESEARCH IT HAS BEEN SEVEN YEARS SINCE THE LAST TIME CORPORATIONS RAISED FUNDS THROUGH SMALL OFFERINGS AS AVIDLY BACK AT A TIME WHEN DEALS OF 100 MILLION AND LESS TOTALED 65 BILLION FOR THE FULL YEAR BECAUSE SMALLER ISSUES TEND TO BE HARDER TO SELL AND LESS WIDELY FOLLOWED THEY HAVE TENDED TO BE BOUGHT UNTIL RECENTLY BY INSURANCE COMPANIES MUTUAL FUNDS WHICH HAVE BEEN BUYING THE BULK OF NEWLY ISSUED JUNK DEALS SHUNNED SMALLER DEALS BECAUSE THEY COULDN'T SOAK UP ENOUGH OF THE CASH THAT HAS FLOODED IN DESPITE DECLINING YIELDS OF LESS THAN 10 FOR SOME JUNK THE MUTUAL FUND MANAGERS HAVE BEEN PELTED WITH NEW CASH AS INVESTORS HAVE TAKEN NOTE OF THE RECENT STRONG JUNK MARKET PERFORMANCE SUCH AS AN 114 YEARTODATE GAIN IN A MERRILL LYNCH HIGHYIELD INDEX FOR THE 12 MONTHS THROUGH JUNE 30 JUNK BOND MUTUAL FUNDS PRODUCED AVERAGE TOTAL RETURNS OF 1764 INCLUDING BOTH THE FUNDS' SHAREPRICE CHANGES AND THEIR DIVIDENDS SUCH FUNDS HAD A 475 RETURN IN THE SECOND QUARTER ALONE SOME MUTUAL FUND MANAGERS NOWADAYS ROUTINELY ENCOURAGE ISSUERS TO BOOST THE SIZE OF THEIR OFFERINGS PAST 100 MILLION TO GUARANTEE BETTER TRADING OF THE BONDS IN THE RESALE MARKET BUT NOW THE OMNIVOROUS FUNDS ARE DEVELOPING AN APPETITE FOR BITESIZE DEALS THE BIGGEST DRAW THE EXTRA 1/4 PERCENTAGE POINT OF INTEREST SMALLER ISSUERS HAVE TO PAY COMPARED WITH LARGER ISSUERS DEEMED EQUALLY CREDITWORTHY WE ARE GETTING MORE INCLINED TO BUY ISSUES BETWEEN 50 MILLION AND 100 MILLION THAN WE WERE SIX MONTHS AGO SAYS DON KELLER WHO RUNS KEYSTONE'S HIGHYIELD FUNDS HE SAYS THAT BECAUSE LARGE JUNK ISSUES CAN BE SOLD OFF MORE EASILY THEIR PRICES MAY FACE GREATER SELLINGINDUCED PRESSURE IN THE EVENT OF AN INTERESTRATE UPTURN SMALL ISSUES HANG IN THERE PRICE UNCHANGED FOR LONGER HE SAYS YET SMALLER ISSUES TEND TO BE LESS CREDITWORTHY ACCORDING TO MR FRIDSON OF MERRILL LYNCH IN THEIR QUEST FOR CURRENT INCOME HE SAYS INVESTORS SEEM WILLING TO INCUR THE RISK OF DEFAULT AS WELL AS FUTURE ILLIQUIDITY OR DIFFICULTY IN FINDING A BUYER FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S ECONOMIC REPORT TO CONGRESS CONTINUED TO RIPPLE THROUGH THE BOND MARKET FRIDAY SENDING BOND PRICES SHARPLY LOWER IN HIS SEMIANNUAL REPORT TO CONGRESS ON TUESDAY AND THURSDAY MR GREENSPAN SAID THAT WHILE HE DOESN'T BELIEVE THAT INFLATION IS CURRENTLY A PROBLEM THE CENTRAL BANK WILL UNDOUBTEDLY BE FORCED TO RAISE INTEREST RATES IN THE FUTURE THE SIGNAL WE ARE ENDEAVORING TO SEND HERE IS THAT AT SOME POINT RATES ARE GOING TO HAVE TO MOVE UP HE SAID LAST WEEK SUCH REMARKS TRIGGERED A WAVE OF SELLING IN THE BOND MARKET THAT BEGAN TUESDAY AND CONTINUED THROUGH THE REST OF THE WEEK THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND WAS QUOTED LATE FRIDAY AT 105 13/32 DOWN SHARPLY FROM 107 18/32 LAST MONDAY LAST WEEK'S PRICE DECLINE TRANSLATES INTO A LOSS OF ABOUT 2 1/8 POINTS OR ABOUT 2125 FOR A BOND WITH A 1000 FACE AMOUNT MEANWHILE THE ISSUE'S YIELD ROSE TO 670 ON FRIDAY FROM 654 MONDAY INVESTORS WHO WERE LISTENING TO GREENSPAN RECOGNIZED THAT HE'S NOT GOING TO EASE INTEREST RATES ANY TIME SOON AND THAT HE WAS SUGGESTING THAT OVER TIME AS THE ECONOMY IMPROVES RATES ARE GOING TO HAVE TO WORK THEMSELVES HIGHER SAID DAVID DUERSON MANAGER OF THE TRADING DESK AT BANK OF AMERICA IN SAN FRANCISCO THAT MAY NOT HAPPEN THIS MONTH IT MAY NOT HAPPEN THIS QUARTER BUT IT'S INEVITABLE AND THAT MEANS LOWER BOND PRICES IN ADDITION TO MR GREENSPAN'S DISCOURAGING REMARKS BOND INVESTORS WERE RATTLED BY CONCERNS OVER THE OUTLOOK FOR DEFICIT REDUCTION WHILE INVESTORS BELIEVE THAT CONGRESS WILL PASS SOME TYPE OF DEFICITCUTTING MEASURE THEY INCREASINGLY ARE SKEPTICAL THAT IT WILL MATCH THE 500 BILLION REDUCTION THAT HAD INITIALLY BEEN PROMISED BY THE CLINTON ADMINISTRATION SUPPLY ALSO WEIGHED HEAVILY ON THE MARKET AS THE TURNAROUND IN INTEREST RATES CAUSED ISSUERS TO SCRAMBLE TO LOCK IN CURRENT INTEREST RATES BEFORE THEY RISE MUCH FURTHER LAST WEEK MORE THAN 4 BILLION OF NEW MUNICIPAL BONDS WERE PRICED AND JUST SHY OF 10 BILLION CORPORATE PAPER HIT WALL STREET BY MIDWEEK SOME OF THE BONDS WERE BEGINNING TO STACK UP ON DEALERS' SHELVES PROMPTING TRADERS TO HEDGE THEIR BLOATED INVENTORIES BY SELLING TREASURY BONDS 9307260074 930726 LETTERS TO THE EDITOR WHO AND WHAT REALLY CREATE JOBS THREE CHEERS FOR THE RECENT COMMENTARY BY THE GIPPER HURRY UP AND WAIT EDITORIAL PAGE JULY 8 ALTHOUGH THE QUESTION OF DEBT AND DEFICIT ARE IGNORED FORMER PRESIDENT RONALD REAGAN'S COMMONSENSE IDEAS OF THE ECONOMICS OF TAXES AND HIS PORTRAYAL OF CONGRESSIONAL INCOMPETENCE HIT THE NAIL ON THE HEAD WITH WHAT IS WRONG WITH THE CLINTON TAX AND SPEND PLAN FOR CHANGE IF I HEAR THAT WORD ONE MORE TIME I'LL THROW UP SNAP OUT OF IT BILL AND LET THE MARKETS REPAIR THEMSELVES WE DO NOT NEED MORE GOVERNMENT AND MORE FAILED BUREAUCRACIES USE YOUR POWER AS PRESIDENT TO NUDGE THE GROWTH AND PRODUCTIVITY OF INDUSTRY BACK TO GLOBAL DOMINANCE BY DEVISING COMMONSENSE LEGISLATION SUCH AS CUTTING THE CAPITAL GAINS TAX WAKE UP TO REALITY BILL AND STOP THROWING AROUND THIS RICH VS POOR MALARKEY THAT GOT YOU ELECTED THERE HE GOES AGAIN MR REAGAN WANTS US TO MAKE THE LOGICAL LEAP THAT BECAUSE A INVESTMENTS CREATE JOBS AND B PEOPLE AND COMPANIES GIVEN SUFFICIENT MEANS WILL MAKE INVESTMENTS THAT THEREFORE C PEOPLE AND COMPANIES GIVEN SUFFICIENT MEANS WILL CREATE JOBS A CLOSE LOOK AT THAT SYLLOGISM WILL REVEAL WHY IT DOESN'T NECESSARILY HOLD TRUE JOBS ARE CREATED FROM INVESTMENTS BUT NOT ALL INVESTMENTS CREATE JOBS A MUCH STRONGER AND RELIABLE PREMISE FOR A IS THAT INVESTMENT MONEY WILL SEEK THE BEST RETURN THIS COULD BE FROM SOCIALLY BENEFICIAL THINGS SUCH AS DIRECT INVESTMENT IN EQUIPMENT PLANTS AND R&D BUT AS WE LEARNED OVER THE PAST 12 YEARS IT ALSO COULD BE FROM GRAYER AREAS SUCH AS ARBITRAGE SHORTTERM BUYING AND SELLING LEVERAGED BUYOUTS MOVING FACTORIES OFFSHORE OR OTHER LESSSAVORY OPTIONS THAT HAVE ONLY WEAK TIES AT BEST TO AMERICAN JOB CREATION I WAS A YEAR SHY OF VOTING AGE IN 1980 LIKE MANY THOUGH I COULD MAKE THE LEAP OF FAITH THAT A PLUS B WOULD EQUAL C WHEN IT CAME TO TAX RELIEF FOR THE WEALTHY INVESTMENTS AND JOBS NO MORE LIKE MANY I'VE SINCE LEARNED THAT THE WORLD IS NOT AS SIMPLE A PLACE WHETHER PRESIDENT CLINTON OR ANYONE CAN COME UP WITH TARGETED TAX INCENTIVES THAT ARE AIRTIGHT ENOUGH TO ENSURE THAT THEY EXCLUSIVELY DO SUPPORT JOBCREATING INVESTMENT IS STILL IN DOUBT BUT THE POLITICAL SHIFT TOWARD THE TARGETED APPROACH AND THE FACT THAT HIGHER MARGINAL INCOME TAX RATES ARE THE LEAST CONTROVERSIAL PART OF THE CLINTON PACKAGE SHOW THAT THE DEBATE HAS MOVED PAST THE POINT OF CONSIDERING ACROSSTHEBOARD CUTS FOR THE WEALTHY WITH NO STRINGS ATTACHED THAT'S THE DIFFERENCE BETWEEN 1980 AND 1993 MR REAGAN THE POLEMICIST WRITES THAT OTHER THAN SHORTTERM MAKEWORK PROJECTS THE GOVERNMENT DOES NOT CREATE JOBS THE PRIVATE SECTOR DOES HOW QUICKLY HIS MEMORY HAS FAILED HIM HE WAS ELECTED TWICE ON PLEDGES THAT HE WOULD SHRINK GOVERNMENT REDUCE SPENDING GET GOVERNMENT OFF THE BACKS OF TAXPAYERS ETC DURING HIS EIGHT YEARS IN OFFICE THE FEDERAL PAYROLL BALLOONED GROSSLY AND HIS DEFENSE SECRETARY FED BILLIONS OF TAX DOLLARS TO THE INDUSTRIAL CONTRACTORS WHO BILKED THE US TREASURY BY THE BILLIONS BY MANUFACTURING WASTEFUL MALFUNCTIONING WEAPONS WEREN'T THESE JOBS JOBS JOBS CREATED BY GOVERNMENT DURING HIS REIGN 9307260073 930726 SURGEON GENERAL NOMINEE ELDERS ENDS SENATE HEARING IN STRONGER POSITION BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JOYCELYN ELDERS PRESIDENT CLINTON'S NOMINEE FOR SURGEON GENERAL EMERGED FROM HER SENATE CONFIRMATION HEARING IN A STRONGER POSITION TO OVERCOME ATTACKS FROM CONSERVATIVES AND WIN CONFIRMATION DR ELDERS A PEDIATRIC ENDOCRINOLOGIST WHO RAN THE ARKANSAS DEPARTMENT OF HEALTH FROM 1988 UNTIL THIS MONTH HAS BEEN ASSAILED BY A NUMBER OF CONSERVATIVE AND RIGHTWING RELIGIOUS GROUPS FOR ADVOCATING CONDOM DISTRIBUTION IN PUBLIC SCHOOLS ABORTION RIGHTS AND AN ELEMENTARYSCHOOL HEALTH CURRICULUM THAT INCLUDES LESSONS ON HUMAN SEXUALITY FRIDAY'S HEARING HAD BEEN POSTPONED A WEEK AFTER REPUBLICANS RAISED CONCERNS ABOUT HER PERSONAL FINANCES SHE WAS QUESTIONED CAREFULLY ABOUT THOSE MATTERS BY THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE AND HER ANSWERS SEEMED TO SATISFY MOST PANEL MEMBERS AFTER AN ACRIMONIOUS START IN WHICH SEN DON NICKLES R OKLA FORCED THE COMMITTEE TO ADJOURN CITING A LITTLEUSED SENATE RULE THE PANEL RECONVENED TO COMPLETE THE HEARING IN A SINGLE DAY SEN EDWARD KENNEDY D MASS COMMITTEE CHAIRMAN SCHEDULED A VOTE FOR FRIDAY THE COMMITTEE IS VIRTUALLY CERTAIN TO APPROVE THE NOMINATION AND THE FULL SENATE COULD TAKE ACTION BEFORE IT ADJOURNS IN ABOUT TWO WEEKS FOR SUMMER RECESS THE NOMINEE OPENED WITH A MOVING STATEMENT ABOUT THE CIRCUMSTANCES THAT LED TO HER CAREER IN PUBLIC HEALTH DR ELDERS GREW UP IN POVERTY AS ONE OF EIGHT CHILDREN ATTENDED MEDICAL SCHOOL ON THE GI BILL AND WENT ON TO BECOME THE FIRST BLACK AND FIRST WOMAN TO LEAD THE STATE HEALTH DEPARTMENT I HAD NEVER SEEN A PHYSICIAN PRIOR TO MY FIRST YEAR IN COLLEGE SHE TOLD THE PANEL HER VOICE BREAKING WITH EMOTION SHE SAID I HAVE HEARD MY MOTHER SCREAM DURING DIFFICULT CHILD DELIVERIES WITHOUT ANY MEDICAL HELP SHE WENT ON TO ADDRESS THE PLETHORA OF CONTROVERSIAL ISSUES SURROUNDING HER CONFIRMATION ON ABORTION SHE DECLARED I HAVE NEVER BEEN ABOUT ABORTION I AM ABOUT PREVENTING UNPLANNED PREGNANCY I KNOW IF WE PREVENT UNPLANNED PREGNANCY ABORTION WILL BECOME A NONISSUE SHE INSISTED THAT SHE SUPPORTS TEACHING TEENAGERS ABSTINENCE BUT SHE STRESSED THAT BECAUSE SOME YOUTHS ENGAGE IN SEXUAL INTERCOURSE THEY SHOULD ALSO BE TAUGHT RESPONSIBLE SEXUAL BEHAVIOR INCLUDING THE IMPORTANCE OF USING CONDOMS TO PROTECT AGAINST AIDS AND PREGNANCY SHE MAINTAINED THAT THE HEALTH CURRICULUM SHE ADVOCATES IS AGE APPROPRIATE ON SCHOOL DISTRIBUTION OF CONDOMS SHE DISCUSSED A PROGRAM SHE STARTED GRANTING STATE FUNDS SO ARKANSAS SCHOOL DISTRICTS COULD OPEN SCHOOL HEALTH CLINICS SOME DISPENSED CONDOMS SHE SAID BUT THE DISTRICTS COULD DECIDE WHAT SERVICES THE CLINICS WOULD OFFER AND THE PARENTS COULD DECIDE WHAT SERVICES THEIR CHILDREN RECEIVED PARENTS COULD SAY THEY DIDN'T WANT THE CHILD TO USE THE CLINIC SHE SAID OR THEY COULD SAY THEY DIDN'T WANT THEM TO HAVE REPRODUCTIVE HEALTH SERVICES DR ELDERS SAID THE SOCIAL SECURITY TAXES FOR A NURSE EMPLOYED BY HER HUSBAND TO ASSIST HIS AILING MOTHER HAD BEEN PAID SHE ADDED THAT THE FUNDS FOR THE TAXES AND THE NURSE'S WAGES WERE HER MOTHERINLAW'S AND THAT HER HUSBAND HANDLED THE MATTER SHE ACKNOWLEDGED THAT AS A DIRECTOR OF THE NATIONAL BANK OF ARKANSAS SHE AND THE OTHER BOARD MEMBERS RECEIVED A LETTER OF REPRIMAND FROM THE FEDERAL OFFICE OF THE COMPTROLLER OF THE CURRENCY BUT SHE SAID NONE OF HER PERSONAL ACTIONS WERE CITED AND NO FURTHER MEASURES WERE TAKEN ON CHARGES OF DOUBLEDIPPING DR ELDERS SAID SHE HAS BEEN COLLECTING A PER DIEM CONSULTING FEE FROM THE FEDERAL GOVERNMENT FOR WORK LEADING TO HER CONFIRMATION HEARINGS UNTIL SHE RESIGNED THIS MONTH SHE WAS ALSO BEING PAID BY THE STATE OF ARKANSAS DR ELDERS SAID HOWEVER THAT SHE WAS TAKING VACATION DAYS TO WORK IN WASHINGTON SEN KENNEDY PRESENTED A LETTER FROM JACK KRESS THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ETHICS OFFICER WHO SAID THAT SUCH AN ARRANGEMENT WAS COMMON PRACTICE FOR NOMINEES AND VIOLATED NO RULES THE WHITE HOUSE STILL SMARTING FROM THE FUROR SURROUNDING ITS DECISION TO DROP THE NOMINATION OF LANI GUINIER FOR THE JUSTICE DEPARTMENT'S TOP CIVIL RIGHTS POST HAS BEEN DETERMINED TO AVOID ANOTHER FIASCO ALSO SINCE MR CLINTON WAS DR ELDERS'S BOSS FOR FIVE YEARS IT WAS IMPOSSIBLE FOR HIM TO DISTANCE HIMSELF FROM HER VIEWS AS HE DID WITH MS GUINIER ADMINISTRATION OFFICIALS ALONG WITH OTHER SUPPORTERS ATTENDED THE HEARING WEARING PINS READING SUPPORT YOUR ELDERS OTHER PINS PICTURED A LIGHTNING BOLT AN ALLUSION TO STATEMENTS CALLING DR ELDERS A LIGHTNING ROD 9307260072 930726 BANKERS FIRST INVESTORS MAY SEEK BOARD SEAT A WALL STREET JOURNAL NEWS ROUNDUP AN INVESTOR GROUP THAT RECENTLY ACQUIRED A 7 STAKE IN BANKERS FIRST CORP OF AUGUSTA GA MAY SEEK BOARD REPRESENTATION OR A MERGER OF THE COMPANY THE GROUP WHICH INCLUDES MIDATLANTIC INVESTORS AND JERRY ZUCKER OF COLUMBIA SC INITIALLY PURCHASED 250000 COMMON SHARES OF BANKERS FIRST ON JULY 13 AT 1525 A SHARE IT SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE GROUP THEN PURCHASED AN ADDITIONAL 60000 SHARES FROM JULY 13 TO JULY 22 AT PRICES RANGING FROM 1541 TO 1650 A SHARE THE GROUP SAID IN THE FILING IT MAY SEEK OFFICE OF THRIFT SUPERVISION APPROVAL TO BUY MORE THAN 10 OF THE COMPANY BUT LESS THAN 25 ACCORDING TO THE FILING THE GROUP MAY SEEK BOARD REPRESENTATION AT BANKERS FIRST BY PROXY SOLICITATION AND THE GROUP MAY SEEK A MERGER BETWEEN BANKERS FIRST AND ANOTHER ENTITY THE FILING SAID THE GROUP MAY COMMUNICATE WITH OTHER BANKERS FIRST SHAREHOLDERS THE GROUP HOLDS A TOTAL OF 310000 COMMON SHARES OF THE BANKING COMPANY H JERRY SHEARER A RETIRED BANKER IN COLUMBIA SC WHO IS PART OF MIDATLANTIC INVESTORS SAID HE AND MR ZUCKER INTEND TO TALK TO BANKERS FIRST MANAGEMENT TO DETERMINE THEIR MANAGEMENT PHILOSOPHY IF THE INVESTORS AGREE WITH THEIR DIRECTION WE'LL JUST SIT BACK AND BE INVESTORS HE SAID OTHERWISE WE'LL TALK ABOUT POSSIBLE BOARD REPRESENTATION MR ZUCKER IS HEAD OF INTERTECH GROUP INC A PRIVATELY HELD DIVERSIFIED MANUFACTURER IN CHARLESTON SC MR SHEARER SAID THE INVESTORS MAY INCREASE THEIR STAKE IN BANKERS FIRST IF THE STOCK PRICE FALLS HE ADDED 9307260071 930726 FOLEY TO SEVER INVESTMENT TIES WITH BROKER HOUSE SPEAKER WHO SAW QUICK PROFITS CITES INTEGRITY OF HIS OFFICE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SPEAKER THOMAS FOLEY IS SEVERING ALL INVESTMENT TIES WITH A FORMER HIGH SCHOOL FRIEND AND BROKER WHO HAS HELPED HIM CULL QUICK PROFITS FROM THE PURCHASE AND RESALE OF INITIAL PUBLIC OFFERINGS OF STOCKS OVER THE PAST DECADE MR FOLEY SAID HE INSTRUCTED BOSTON MONEY MANAGER PETER DE ROETTH TO CLOSE HIS ACCOUNT AFTER CHARGING SERVICE COSTS INCLUDING AN ADVISORY FEE EQUALING 1 OF ASSETS THAT MR DE ROETTH PREVIOUSLY WAIVED GIVEN THE RELATIVELY MODEST SIZE OF THE SPEAKER'S PORTFOLIO I TOLD HIM I WANT TO HAVE A FINAL CLOSING OF THE ACCOUNT MR FOLEY SAID IN AN INTERVIEW I DON'T VALUE ANYTHING MORE THAN THE INTEGRITY OF THE SPEAKER'S OFFICE I'M GOING TO GO THE EXTRA MILE MUCH OF THE MONEY ALREADY HAS BEEN WITHDRAWN TO HELP FINANCE A CAPITOL HILL HOME BUILT BY MR FOLEY AND HIS WIFE THE ESTIMATED 25000 REMAINING IS LIKELY TO GO EITHER INTO A SAVINGS ACCOUNT OR MUTUAL FUND ACCORDING TO THE SPEAKER AND MR DE ROETTH THE BROKER'S FIRM ACCOUNT MANAGEMENT CORP DOESN'T CUSTOMARILY CHARGE THE EXTRA 1 FEE WHEN A PORTFOLIO IS UNDER 100000 BUT MR FOLEY SAID HE ASKED TO BE BILLED TO AVOID AN APPEARANCE OF FAVORITISM BOTH MEN HAVE DENIED ANYTHING IMPROPER IN THE STOCK DEALINGS WHICH HAVE BEEN THE SUBJECT OF PERIODIC REPORTS IN THE WASHINGTON POST IN 1988 AND AGAIN THIS SUMMER IN THE TWICEWEEKLY CAPITOL HILL NEWSPAPER ROLL CALL BUT OVER TIME THE CONSISTENT PATTERN OF PROFITS MORE THAN 30000 ANNUALLY IN RECENT YEARS HAS PROVEN EMBARRASSING BECAUSE MR FOLEY ROUTINELY ENJOYED ACCESS TO NEW STOCKS THAT ARE UNAVAILABLE TO THE AVERAGE INVESTOR IN THIS MANNER THIS HIGHROLLER WALL STREET PROFILE SCARCELY FITS DEMOCRATIC CLAIMS OF IDENTIFYING WITH THE MIDDLE CLASS AND THE PARTY CAN ILL AFFORD AN ATTACK ON THE SPEAKER'S ETHICS AT A TIME WHEN HIS JUDICIAL IMAGE IS A LAST BULWARK AGAINST REPUBLICAN BROADSIDES CHARACTERIZING THE MAJORITY AS HOPELESSLY CORRUPT AFTER DECADES IN POWER MINDFUL OF THIS CONSERVATIVES HAVE STEPPED UP CRITICISM OF THE SPEAKER'S STOCK DEALINGS AS PART OF A WIDER STRATEGY BUILDING ON THE HOUSE POST OFFICE SCANDAL THERE HAVE BEEN RENEWED ATTEMPTS TO DRAW MR FOLEY'S WIFE AND UNPAID CHIEF OF STAFF HEATHER INTO THE POST OFFICE FRAY THE SPEAKER WAS FORCED TO GO TO THE HOUSE FLOOR LAST WEEK TO ANGRILY DENY REPUBLICAN ACCUSATIONS THAT HE HAD WORKED THROUGH THE JUSTICE DEPARTMENT TO DISCOURAGE RELEASE OF STILLSECRET TESTIMONY COLLECTED BY A TASK FORCE INVESTIGATING THE POST OFFICE'S OPERATIONS EARLY LAST WEEK MR FOLEY'S OFFICE HAD SIGNALED HE WOULD SOON ALTER HIS RELATIONSHIP WITH THE BROKER BUT GIVEN THE CURRENT POLITICAL ATMOSPHERE IT IS UNCLEAR WHETHER THE SPEAKER'S ACTIONS WILL BE ENOUGH TO HEAD OFF PRESSURE AMONG YOUNGER REPUBLICANS FOR AN ETHICS INQUIRY AFTER MONTHS OF SLUMBERING THE POST OFFICE SCANDAL CAME ROARING BACK LAST WEEK WHEN FORMER POSTMASTER ROBERT ROTA PLEADED GUILTY TO EMBEZZLEMENT AND CONSPIRACY CHARGES ACCOMPANYING COURT DOCUMENTS IMPLICATE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI IN THE CASHFORSTAMPS SCANDAL SATURDAY AFTER DAYS OF SILENCE THE CHICAGO DEMOCRAT CALLED A BRIEF NEWS CONFERENCE TO ANNOUNCE A NEW DEFENSE TEAM AND ANGRILY DENY ANY WRONGDOING I HAVE COMMITTED NO CRIME AND HAVE ENGAGED IN NO ILLEGAL OR UNETHICAL CONDUCT SAID MR ROSTENKOWSKI REFUSING TO TAKE QUESTIONS AND ONLY READING FROM HIS PREPARED STATEMENT I HAVE BEEN CHARGED WITH NOTHING BUT MORE IMPORTANTLY I AM IN FACT INNOCENT OF ANY WRONGDOING THE TONE OF THE STATEMENT AND SHIFT OF LAWYERS REFLECT THE CHAIRMAN'S FRUSTRATION AND LEGAL PERIL HIS PRIOR ATTORNEY STANLEY BRAND A FORMER HOUSE COUNSEL WHO HAS SERVED AS A DEFENSE ATTORNEY TO AN ARRAY OF PROMINENT DEMOCRATS IN PAST CORRUPTION CASES LEARNED OF THE CHANGE ONLY LATE FRIDAY WHEN CALLED BY A FORMER ROSTENKOWSKI STAFFER THE NEW TEAM OF ROBERT BENNETT AND CARL RAUH WILL BRING HIGHER BILLINGS AND MORE OF A PROSECUTORIAL BACKGROUND AND MASTERY OF THE PRESS MR BENNETT'S MEDIA SKILLS WERE OBVIOUS IN THE BEHINDTHESCENES CAMPAIGN HE WAGED AGAINST IRANCONTRA PROSECUTR LAWRENCE WALSH ON BEHALF OF FORMER DEFENSE SECRETARY CASPAR WEINBERGER HE SERVED AS SPECIAL COUNSEL TO THE SENATE ETHICS COMMITTEE DURING ITS INVESTIGATION OF THE SOCALLED KEATING FIVE INFLUENCEPEDDLING CASE IN 1990 GROWING OUT OF THE SAVINGS AND LOAN SCANDALS HIS BROTHER WILLIAM IS BOTH A VETERAN OF THE REAGAN AND BUSH ADMINISTRATIONS AND A POSSIBLE PRESIDENTIAL CANDIDATE IN 1996 THE POST OFFICE CASE WAS ALSO THE SUBJECT OF BACKTOBACK INTERVIEWS YESTERDAY WITH MR FOLEY AND HOUSE REPUBLICAN WHIP NEWT GINGRICH ON CBSTV'S FACE THE NATION MR GINGRICH SAID IT WOULD BE TOTALLY INAPPROPRIATE FOR MR ROSTENKOWSKI TO BE FORCED TO STEP ASIDE UNLESS CHARGES ARE IN FACT BROUGHT AGAINST HIM BUT THE GEORGIA REPUBLICAN FAULTED THE BROADER HOUSE LEADERSHIP FOR FAILING TO BE MORE AGGRESSIVE IN INVESTIGATING THE SCANDAL MR GINGRICH CITED A LETTER LAST WEEK FROM THE US ATTORNEY'S OFFICE HERE SAYING THAT CERTAIN FILES APPEAR TO BE MISSING FROM HOUSE RECORDS TURNED OVER TO PROSECUTORS THESE APPARENTLY INCLUDE CORRESPONDENCE FILES KEPT BY MR ROTA WHO IS NOW COOPERATING WITH INVESTIGATORS BUT THE TONE OF THE PROSECUTORS' REQUEST TO THE HOUSE LEADERSHIP IS FAR FROM ACCUSATORY AND MR FOLEY AGAIN PLEDGED HIS ASSISTANCE IN TRYING TO LOCATE THE DOCUMENTS I HAVE NO KNOWLEDGE OF ANY MISSING DOCUMENTS HE SAID BUT CERTAINLY WE'RE GOING TO ALLOW THE US ATTORNEY TO MAKE ANOTHER REVIEW 9307260070 930726 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE BUDGET TALKS SET TO HEAT UP WITH FOCUS ON TAILORING ENERGY TAX TO SUIT SENATE BY JOHN HARWOOD AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CONGRESSIONAL NEGOTIATIONS ON PRESIDENT CLINTON'S 500 BILLION DEFICITREDUCTION PACKAGE TURN SERIOUS THIS WEEK AND THE KEY QUESTION IS HOW LARGE AN ENERGY TAX THE SENATE WILL ACCEPT SENATE NEGOTIATORS ARE SURE TO REJECT THE PHASEDIN NINECENTAGALLON GASOLINE TAX INCREASE THAT HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI PROPOSED LATE LAST WEEK EVEN CONGRESSIONAL BLACK CAUCUS CHAIRMAN KWEISI MFUME INTERVIEWED YESTERDAY ON NBCTV'S MEET THE PRESS CALLED THAT FIGURE TOO MUCH BUT OTHER DISAGREEMENTS BETWEEN THE TWO CHAMBERS PROBABLY WON'T BE SETTLED UNTIL SENATE DEMOCRATS DECIDE HOW MUCH TO RAISE THE 43CENTAGALLON INCREASE THAT PASSED BY A SINGLE VOTE LAST MONTH THE WHITE HOUSE IS INCREASINGLY CONFIDENT OF ITS POSITION IN THE HOUSE WHERE DISPARATE DEMOCRATIC FACTIONS HAVE LATELY ADOPTED A CONCILIATORY POSTURE FOR HIS PART MR MFUME HINTED AT COMPROMISE ON THE SIZE OF MEDICARE SPENDING CUTS AND ON THE LEVEL OF AN EXPANDED TAX CREDIT FOR POOR WORKERS BOTH ISSUES ON WHICH THE SENATE HAS BEEN STINGIER THAN THE HOUSE THE ADMINISTRATION PACKAGE IS GOING TO PASS SAID REP MFUME D MD WE REALLY DON'T HAVE A CHOICE WE WERE SENT HERE TO DO SOMETHING THE NEGOTIATORS HOPE TO STRIKE A DEAL BY THE END OF THIS WEEK IN HOPES OF PASSING A COMPROMISE BEFORE CONGRESS ADJOURNS FOR ITS SUMMER RECESS IN ABOUT TWO WEEKS NOW HOUSE DEMOCRATS ARE COUNTING ON MR CLINTON AND HIS TREASURY SECRETARY FORMER SEN LLOYD BENTSEN TO EXTRACT CONCESSIONS FROM THEIR SENATE COUNTERPARTS TO THAT END THE PRESIDENT CALLED A SERIES OF DEMOCRATIC SENATORS TO THE WHITE HOUSE FOR PRIVATE MEETINGS OVER THE WEEKEND YESTERDAY ON NBC MR BENTSEN SAID HE IS OPTIMISTIC THAT ONE OF THOSE RECALCITRANT DEMOCRATS DAVID BOREN OF OKLAHOMA WILL ULTIMATELY SUPPORT A COMPROMISE NEGOTIATORS ARE TRYING TO CLOSE THE GAP BETWEEN THE 22 BILLION THE SENATE WOULD RAISE OVER FIVE YEARS WITH A 43 CENTAGALLON GAS TAX INCREASE AND THE 72 BILLION THE HOUSE WOULD RAISE FROM A BROADBASED ENERGY TAX THAT HAS SINCE BEEN DISCARDED THE LATEST HOUSE GAS TAX OFFER WOULD YIELD 40 BILLION BUT THE ADMINISTRATION AND SENATE LEADERS DOUBT THEY CAN PASS AN INCREASE RAISING MORE THAN 34 BILLION THE ROUGH EQUIVALENT OF A 6 CENTAGALLON INCREASE BUT FINANCIAL MARKETS MAY BE SKEPTICAL BECAUSE CONGRESS COULD ALWAYS REVOKE A TAX INCREASE IT PROMISES TO IMPOSE LATER MORE IMPORTANTLY ADMINISTRATION OPPONENTS ARE CERTAIN TO SEIZE ON THE EVENTUAL AMOUNT OF THE INCREASE REGARDLESS OF WHEN IT TAKES EFFECT THE NEED FOR MORE REVENUE HAS BECOME EVEN MORE PRESSING IN RECENT DAYS TO COURT WAVERING DEMOCRATS SUCH AS JOSEPH LIEBERMAN OF CONNECTICUT THE ADMINISTRATION AND SENATE MAJORITY LEADER GEORGE MITCHELL WANT TO ADD A HOUSEPASSED CAPITALGAINS TAX BREAK FOR INVESTORS IN NEW SMALL BUSINESSES AND HOUSE NEGOTIATORS LATE LAST WEEK ACCEPTED THE SENATE'S PLAN TO SCALE BACK A TAX CREDIT FOR COMPANIES OPERATING IN PUERTO RICO BY FAR LESS THAN THE HOUSE AND MR CLINTON HAD PROPOSED THE SENATE PROVISION WOULD RAISE ABOUT 4 BILLION OVER FIVE YEARS THE PRESIDENT'S ORIGINAL PROPOSAL WOULD HAVE BROUGHT IN MORE THAN 25 BILLION BEYOND THAT ACCEPTANCE OF THE SENATE VERSION A BIG VICTORY FOR PHARMACEUTICAL COMPANIES AND OTHER FIRMS WITH FACTORIES IN PUERTO RICO CAME AFTER THE WHITE HOUSE MADE CLEAR IT WOULD GO ALONG WITH THE MORE MODEST REDUCTION IN THE CREDIT THE ADMINISTRATION HAD ARGUED THAT THE CREDIT NEEDED TO BE PARED CONSIDERABLY BECAUSE COMPANIES WERE REAPING FAR MORE IN TAX ADVANTAGES THAN THEY WERE GIVING OUT IN WORKERS' WAGES ON THE ISLAND BUT THE WHITE HOUSE BACKED OFF CLINTON AIDES SAID AFTER REALIZING HOW IMPORTANT THE ISSUE IS TO NEW YORK SEN DANIEL MOYNIHAN WHO IS UP FOR REELECTION NEXT YEAR AND HAS A HUGE PUERTO RICAN CONSTITUENCY IT WAS ALSO A VICTORY FOR DEMOCRATIC SEN BILL BRADLEY WHOSE HOME STATE OF NEW JERSEY HAS SEVERAL MAJOR PHARMACEUTICAL PRODUCERS ON OTHER MATTERS MR BENTSEN MADE CLEAR YESTERDAY THAT HE DOESN'T WANT THE FEDERAL RESERVE TO INCREASE SHORTTERM INTEREST RATES ANY TIME SOON IN KEEPING WITH CLINTON ADMINISTRATION STRATEGY HOWEVER HE CAREFULLY AVOIDED ANYTHING RESEMBLING CRITICISM OF THE FED OR THREATS AS CONDITIONS ARE AT THE PRESENT TIME I DO NOT SEE A REASON FOR SHORTTERM INTEREST RATES TO GO UP HE SAID FED CHAIRMAN ALAN GREENSPAN SAID LAST WEEK THAT AT SOME POINT THE FED WOULD BOOST SHORTTERM RATES BUT HE DIDN'T SAY WHEN THE TIMING LARGELY DEPENDS ON THE COURSE OF INFLATION AND THE BEHAVIOR OF THE BOND MARKET OVER THE NEXT SEVERAL MONTHS DESPITE PRODDING MR BENTSEN WOULDN'T EVEN AGREE THAT AN INCREASE IN SHORTTERM RATES WOULD HURT EMPHASIZING AS MR GREENSPAN HAS THE NEED TO KEEP LONGTERM INTEREST RATES DOWN MR BENTSEN ALSO SAID THAT THE FLOODS IN THE MIDWEST DESPITE ALL THE DAMAGE THAT THE WATERS HAVE DONE WOULD STIMULATE THE ECONOMY AND CREATE JOBS YOU'RE GOING TO SEE SOME STIMULUS TO OUR ECONOMY HE SAID YOU'RE GOING TO SEE A LOT OF CONCRETE POURED 9307260069 930726 PEPPERAND SALT TO JUST PLAIN GROUCHY OLD MAN WHO WAS THREE YEARS BEHIND 9307260068 930726 FEDERAL JURY CONVICTS CALIFORNIA DOCTOR IN HUGE MEDICALINSURANCE FRAUD CASE BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A FEDERAL COURT JURY HERE CONVICTED A CALIFORNIA DOCTOR OF RACKETEERING AND ORDERED HIM TO FORFEIT 50 MILLION AND HIS HOME IN ONE OF THE LARGEST MEDICALINSURANCE FRAUD CASES IN US HISTORY WILLIAM O KUPFERSCHMIDT WAS ONE OF THE RINGLEADERS IN A SCHEME TO CHEAT INSURANCE COMPANIES AND VARIOUS GOVERNMENT PROGRAMS OUT OF AS MUCH AS 1 BILLION THE VERDICT FRIDAY BROUGHT TO A NEARCLOSE A SIXYEAR FEDERAL AND STATE INVESTIGATION AGAINST DR KUPFERSCHMIDT AND MANY OTHERS INCLUDING MICHAEL AND DAVID SMUSHKEVICH RUSSIAN IMMIGRANTS WHO ORCHESTRATED THE SCAM THE SMUSHKEVICHS WHO ARE BROTHERS PLEADED GUILTY EARLIER THIS YEAR MICHAEL SMUSHKEVICH PLEADED GUILTY JUST BEFORE THE GOVERNMENT'S OPENING STATEMENT IN A FEDERAL COURT TRIAL IN MARCH ADMITTING TO NINE COUNTS OF MAIL AND WIRE FRAUD AND EMBEZZLEMENT OF GOVERNMENT PROPERTY IN EXCESS OF 80 MILLION MESSRS SMUSHKEVICH AND EIGHT OTHER DEFENDANTS WHO ALSO PLEADED GUILTY ARE EXPECTED TO BE SENTENCED EARLY THIS FALL BUT THE VERDICT AGAINST DR KUPFERSCHMIDT WHO ALSO WAS CHARGED WITH COUNTS OF MONEY LAUNDERING AND WIRE FRAUD INDICATE THE SENTENCES LIKELY WILL BE STIFF THESE CONVICTIONS SHOW THAT THOSE WHO ABUSE THE TRUST OF THEIR PATIENTS FOR PERSONAL FINANCIAL GAIN WILL NOT GO UNPUNISHED SAID ASSISTANT US ATTORNEY LEE MICHAELSON DR KUPFERSCHMIDT'S ATTORNEY DIDN'T RETURN A PHONE CALL SEEKING COMMENT DR KUPFERSCHMIDT OF RANCHO PALOS VERDES CALIF IS SET TO BE SENTENCED OCT 4 MS MICHAELSON SAID DR KUPFERSCHMIDT SET UP THREE MEDICAL CLINICS IN THE CALIFORNIA CITIES OF TORRANCE TUSTIN AND SAN DIEGO SHE SAID HE AND THE OTHER DEFENDANTS SUBJECTED EVERY PATIENT TO A BATTERY OF HIGHTECH DIAGNOSTIC TESTS REGARDLESS OF THE PATIENT'S NEED FOR THEM IN MANY INSTANCES SOME OR ALL OF THE TESTS WERE PERFORMED BEFORE THE PATIENT WAS EXAMINED BY A DOCTOR SHE SAID THE EVIDENCE AT THE TRIAL SHOWED THAT PATIENTS WERE LURED TO CLINICS OR SITES SERVICED BY MOBILE VANS FOR A COMPREHENSIVE PHYSICAL EXAMINATION THAT INCLUDED STATE OF THE ART TESTING OFFERED FREE OF CHARGE OR AT NOMINAL COST TO THE PATIENT MS MICHAELSON SAID DR KUPFERSCHMIDT SUPERVISED MEDICAL DOCTORS TECHNICIANS AND NONMEDICAL PERSONNEL WHO PERFORMED PHYSICAL EXAMS AND THEN PLACED PHONY DIAGNOSES ON THE PATIENTS' HEALTH INSURANCE CLAIMS FORMS DR KUPFERSCHMIDT AND THE OTHER DEFENDANTS SET UP HUNDREDS OF CORPORATIONS AND FICTITIOUS BUSINESS ENTITIES THAT THEY USED TO BILL INSURANCE COMPANIES AND LAUNDER THE PROCEEDS MS MICHAELSON ADDED 9307260067 930726 FOREIGN EXCHANGE DOLLAR AND POUND EXPECTED TO BENEFIT FROM LATEST EUROPEAN CURRENCY CRISIS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK WHATEVER THE OUTCOME OF THE LATEST EUROPEAN CURRENCY CRISIS THE DOLLAR AND THE POUND WILL COME OUT AHEAD TRADERS AND ANALYSTS SAY BOTH CURRENCIES BENEFITED FROM THEIR HAVEN STATUS IN TUMULTUOUS TRADING LATE LAST WEEK AS THE STRENGTH OF THE MARK WITHIN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM CONTINUED TO WEIGH ON THE DANISH KRONE THE SPANISH PESETA AND FRENCH FRANC THAT PATTERN IS LIKELY TO REPEAT ITSELF AT LEAST UNTIL THURSDAY TRADERS SAY WHEN THE BUNDESBANK'S POLICYMAKING CENTRAL COUNCIL MEETS FOR THE LAST TIME BEFORE ITS AUGUST RECESS CURRENCY PLAYERS ARE WAITING TO SEE IF THE CENTRAL BANK LOWERS GERMAN INTEREST RATES TO EASE PRESSURE WITHIN THE ERM ESPECIALLY ON THE FRENCH FRANC LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 17195 MARKS UP FROM 17032 MARKS LATE THURSDAY THE DOLLAR ALSO ROSE AGAINST THE YEN RISING TO 10685 YEN FROM 10545 YEN ALTHOUGH TRADERS SAID THE GAINS HAD MORE TO DO WITH A CORRECTION FROM THURSDAY'S PLUNGE THAN A REACTION TO EVENTS IN EUROPE THE POUND ROSE TO 25861 MARKS FROM 25778 MARKS THURSDAY AGAINST THE DOLLAR IT TRADED IN NEW YORK LATE FRIDAY AT 15040 DOWN FROM 15135 THURSDAY ABOUT NOON ON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10705 YEN AND AT 17240 MARKS STERLING'S GAINS COULD PROVE LONGERLIVED THAN THE DOLLAR'S DEALERS SAY STERLING IS THE CURRENCY OF CHOICE RIGHT HERE SAYS STEVEN GEOVANIS MANAGING DIRECTOR OF FOREIGN EXCHANGE AT MERRILL LYNCH IT'S A RELATIVELY SAFE HAVEN AND IT'S REASONABLY PRICED COMPARED TO ITS FELLOW EUROPEAN CURRENCIES THE BRITISH GOVERNMENT'S VICTORY IN TWO VOTES OF CONFIDENCE IN THE HOUSE OF COMMONS FRIDAY HELPS LIFT THE POLITICAL UNCERTAINTY THAT PRODUCED SOME JITTERS IN POUND TRADING LAST WEEK TRADERS SAY ALTHOUGH PRIME MINISTER JOHN MAJOR'S GOVERNMENT STILL FACES HURDLES ANALYSTS SAY THE PROSPECT OF POLITICAL UPHEAVAL HAS RECEDED FAR ENOUGH TO ATTRACT LITTLE ATTENTION FROM THE CURRENCY MARKETS MARKET PLAYERS CAN NOW REFOCUS ON THE BRITISH ECONOMY WHICH APPEARS TO BE CLOSER TO RECOVERY THAN ITS CONTINENTAL COUNTERPARTS' AND ON BRITISH INTEREST RATES ANALYSTS HAVEN'T RULED OUT ANOTHER CUT IN BRITISH RATES BUT THEY NOTE THAT CONTINENTAL RATES HAVE FURTHER TO FALL BUT WHILE A REVIVING BRITISH ECONOMY SHOULD KEEP STERLING STRONG THE DOLLAR'S FLIGHTTOQUALITY GAINS MIGHT EVAPORATE AS SOON AS MARKET PLAYERS BELIEVE EUROPE HAS RESOLVED ITS MONETARY DILEMMA THE DOLLAR WILL BENEFIT AS IT DID LATE LAST WEEK AS LONG AS MARKET PLAYERS HEDGE THEIR EXPOSURE TO THE WEAKER EUROPEAN CURRENCIES BUT IF THE BUNDESBANK CUTS INTEREST RATES AND THE ERM STEADIES THEY WILL REVERSE THOSE TRADES SELLING DOLLARS AND BUYING BACK CURRENCIES TRADERS PREDICT AT THAT POINT THE ITALIAN LIRA AND SWEDISH KRONA MIGHT BENEFIT THEY SAY BECAUSE DEALERS HAVE BEEN SELLING THOSE CURRENCIES HEAVILY AS PROXIES FOR THE FRENCH FRANC AND DANISH KRONE EVEN IF THE ERM UNRAVELS FUNDS ARE STILL LIKELY TO FLOW INTO EUROPE ANALYSTS SAY THAT'S BECAUSE GLOBALBOND INVESTORS WILL LEAP TO INVEST IN EUROPEAN MARKETS LIBERATED FROM THE CONSTRAINTS OF TIGHT GERMAN MONETARY POLICY AND ABLE TO CUT INTEREST RATES SHARPLY 9307260066 930726 BUSINESS BRIEF WORLD INTERNATIONAL HOLDINGS LTD YEAR'S PROFIT JUMPED 50 AIDED BY WHARF'S EARNINGS WORLD INTERNATIONAL HOLDINGS LTD THE LISTED CONGLOMERATE OF THE FAMILY OF THE LATE SHIPPING MAGNATE YK PAO SAID ITS NET PROFIT SURGED 50 TO 147 BILLION HONG KONG DOLLARS US189 MILLION IN THE YEAR ENDED MARCH 31 PARTLY BOOSTED BY THE FULLYEAR CONTRIBUTION OF ITS ASSOCIATE WHARF HOLDINGS LTD ITS YEAREARLIER FIGURES CONSOLIDATED ONLY A NINEMONTH PROFIT CONTRIBUTION BY WHARF AS A RESULT OF THE LATTER'S CHANGE OF FISCAL YEAR END THE HONG KONG CONGLOMERATE HAS DIRECT INTERESTS IN PROPERTY AND RETAILING HOWEVER THE GROUP RELIES ON WHARF HOLDINGS ITS 44OWNED SUBSIDIARY FOR THE BULK OF ITS PROFIT WORLD INTERNATIONAL SAID ITS PROFIT WOULD HAVE RISEN 26 WITHOUT THE BENEFIT OF THE UNEVEN NINEMONTH COMPARISON IN THE FINANCIAL YEAR OF WHARF HOLDINGS 9307260065 930726 REVIEW & OUTLOOK EDITORIAL HOUSE HOBBLES DEMOCRACY THE COLD WAR IS OVER BUT OBVIOUSLY WE FACE AN UNSTABLE WORLD CLEARLY PORTENDING A STRUGGLE OF IDEAS AND VALUES YET THE HOUSE OF REPRESENTATIVES VOTED TO SCUTTLE THE NATIONAL ENDOWMENT FOR DEMOCRACY A FEDERALLY FUNDED OUTFIT THAT HANDS OUT PENCILS FAX MACHINES AND USED COMPUTERS TO EXILE GROUPS PUSHING TO BRING DEMOCRACY TO THEIR EMBATTLED HOMELANDS THIS WEEK WE'LL FIND OUT IF THE SENATE DUPLICATES THIS PREPOSTEROUS MOVE THE HOUSE PROFESSED BUDGETCUTTING SAVING THE LORDLY SUM OF AROUND 48 MILLION OR ABOUT A QUARTER OF THE FUNDING THAT GOES TO THE MORE NOTORIOUS NATIONAL ENDOWMENT FOR THE ARTS IT'S ALSO ABOUT EQUIVALENT TO WHAT THE US SPENT ON MISSILES ALONE WHEN IT LAUNCHED THE JUNE 26 STRIKE AT SADDAM HUSSEIN'S INTELLIGENCE FACILITIES AND THE AGENCY FOR INTERNATIONAL DEVELOPMENT GETS SOME 65 BILLION A YEAR A LOT FOR THIRDWORLD PORK BUT NOTHING FOR SPREADING AMERICAN VALUES IN THE CONFUSING REGIONALIZED YEARS SINCE COMMUNISM'S RETREAT NED'S PROJECTS HAVE PROVEN PARTICULARLY USEFUL THE ENDOWMENT HELPS IRAQI EXILES TO FIGHT FOR SECULAR DEMOCRACY IN THEIR HOME ITS FUNDS HELPED PAY FOR THE DISTRIBUTION OF THOUSANDS OF COPIES OF CHARTER 91 THE EXILED IRAQIS' DRAFT BILL OF RIGHTS INSIDE SADDAM'S IRAQ THIS YEAR THE FREE IRAQ FOUNDATION AN IMPORTANT CENTER FOR SADDAM'S OPPOSITION ABROAD RECEIVED 90000 IN NED MONEY NED FUNDS HAVE ALSO HELPED UKRAINIANS SEEKING TO WIDEN POLITICAL DISCUSSION IN A NATION CURRENTLY LED BY THE FORMER LOCAL CHIEF OF IDEOLOGY LEBANESE INTERESTED IN WORKING ON CONFLICT RESOLUTION INDEPENDENT VIETNAMESE PUBLISHERS WHO PRODUCED TONS OF DOCUMENTS CASSETTES AND PRINTED MATERIAL DESIGNED TO ALERT INFORMATIONDEPRIVED VIETNAMESE TO THE BREAKDOWN OF SOCIALISM IN EASTERN EUROPE AND CHINESE FIGHTING FOR DEMOCRACY IN THE AIRLESS ATMOSPHERE FOLLOWING TIANANMEN SQUARE WRITING FROM HIS ARIZONA REFUGE IN SUPPORT OF NED DISSIDENT FANG LIZHI NOTED THAT IT WOULD BE WONDERFUL IF DEMOCRACY DID INDEED GROW AUTOMATICALLY OUT OF ECONOMIC DEVELOPMENT BUT HISTORY GIVES US UNFORTUNATELY NO SUCH GUARANTEES THE PUBLISHER OF THE VIETNAMESE MAGAZINE QUE ME NOTED THAT THROUGH NED FUNDING THE PERIODICAL MADE REAL HEADWAY IN BRINGING A FLOW OF INFORMATION AND DEMOCRATIC IDEAS WHICH WAS TOTALLY DENIED IN VIETNAM VYTAUTAS LANDSBERGIS LITHUANIA'S OPPOSITION LEADER CALLED THE DEMOCRACY ENDOWMENT'S WORK CRUCIAL ELENA BONNER WROTE THAT CUTTING NED WAS PENNY WISE POUND FOOLISH WHAT ESCAPES THE ENDOWMENT'S OPPONENTS IS THE MIRACULOUS ECONOMY OF NEDSTYLE PROGRAMS HAD THE WEST SPENT A FEW TENS OF MILLIONS PRODUCING SOME EFFECTIVE PROPAGANDA FOR THE AIRWAVES AROUND BELGRADE DURING THE 1980S FOR EXAMPLE SLOBODAN MILOSEVIC LIKELY WOULD NEVER HAVE GAINED HIS ORWELLIAN STRONGHOLD ON THE MINDS OF SERBIAN NATIONALS RADIO FREE EUROPE NEVER MADE IT INTO TITO'S YUGOSLAVIA BECAUSE US LAWMAKERS DEEMED THE NATION RELATIVELY DEMOCRATIC THIS WEEK PROMISES TO BRING SOME INTERESTING NEWS ON THE FOREIGN AID FRONT JOE BIDEN HAS THREATENED TO FILIBUSTER TO SAVE THE LIFE OF ANOTHER EFFECTIVE INFORMATION VEHICLE RADIO FREE EUROPE SINCE CONGRESS KNOCKED NED OFF ITS VERSION OF THE BUDGET LEGISLATION IN JUNE THE AGENCY HAS RECEIVED NUMEROUS LETTERS OF SUPPORT NED ALSO HAS SOME WHITE HOUSE FRIENDS WHO COULD BE OF HELP UNTIL HIS RECENT ASCENDANCY DAVID GERGEN SAT ON NED'S BOARD 9307260064 930726 ENDOWMENT OFFICIALS' PAY IS MIXED BAG BY STEPHEN FRANK STAFF REPORTER OF THE WALL STREET JOURNAL HOW MUCH DO YOU HAVE TO PAY FOR INVESTMENT MANAGEMENT IF YOU'RE A MAJOR UNIVERSITY LOOKING FOR SOMEONE TO SHEPHERD YOUR ENDOWMENT THE ANSWER CAN HAVE LITTLE TO DO WITH PERFORMANCE THE SIZE OF THE PORTFOLIO OR ADMINISTRATIVE SALARY LEVELS LAST YEAR FOR INSTANCE LAURANCE HOAGLAND EARNED JUST OVER 576000 IN SALARY AND BONUSES AS PRESIDENT OF STANFORD MANAGEMENT CO AND KEEPER OF STANFORD UNIVERSITY'S NEARLY 25 BILLION ENDOWMENT THAT IS ABOUT 326000 MORE THAN THE ANNUAL SALARY OF MR HOAGLAND'S BOSS STANFORD UNIVERSITY PRESIDENT GERHARD CASPER SUCH DISPARITIES ARE TYPICAL AMONG THE NATION'S 10 LARGEST UNIVERSITY ENDOWMENTS YET EVEN THOSE IN THE INVESTMENT MANAGEMENT FIELD SAY THE REASONS FOR THE DIFFERENCES ARE A MYSTERY I'VE BEEN AROUND THE BUSINESS A LONG TIME AND THE ANOMALIES OF PAY ARE A SUBJECTIVE THING IN MANY CASES SAYS JOHN S GRISWOLD JR SENIOR VICE PRESIDENT AT COMMON FUND A WESTPORT CONN COOPERATIVE THAT MANAGES MORE THAN 7 BILLION IN POOLED ENDOWMENT ASSETS FROM SEVERAL HUNDRED COLLEGES UNIVERSITIES AND INDEPENDENT SCHOOLS SAYS RICHARD S LANNAMANN MANAGING DIRECTOR OF RUSSELL REYNOLDS ASSOCIATES INC A LEADING RECRUITING FIRM IN THE INVESTMENT MANAGEMENT INDUSTRY THERE'S NO RATIONAL REASON FOR THE WIDE VARIATIONS MR HOAGLAND AND MR HACK HAVE ESSENTIALLY THE SAME JOB THEY HIRE AND FIRE THE MONEYMANAGEMENT FIRMS EMPLOYED TO INVEST THE ENDOWMENT ASSETS THEIR UNIVERSITIES DEPEND ON TO SUPPLEMENT REVENUE FROM TUITION GRANTS AND OTHER SOURCES MR HOAGLAND MANAGES CASH AND FIXEDINCOME ASSETS INHOUSE WHILE MR HACK DISTRIBUTES THAT PART OF HIS PORTFOLIO TO OUTSIDE FIRMS BOTH SCHOOLS CAN BOAST TOPNOTCH INVESTMENT RETURNS OVER THE DECADE THROUGH JUNE 30 1992 STANFORD'S ENDOWMENT EARNED AN AVERAGE 163 A YEAR ACCORDING TO INFORMATION SUPPLIED BY THE UNIVERSITY BUT PRINCETON DID A LITTLE BETTER WITH AN ANNUAL RETURN OF 17 OVER THE SAME PERIOD MR HACK 46 YEARS OLD WHO'S HAD HIS JOB AT PRINCETON SINCE 1990 SAYS HE IS NOT UNDERCOMPENSATED HE ADDS THAT THE INTELLECTUAL CONTENT OF THE JOB IS EXTREMELY HIGH AND THE QUALITY OF THE PEOPLE YOU DEAL WITH IS EXTREMELY HIGH MR HOAGLAND 56 WHO HAS HAD HIS JOB FOR TWO YEARS SAYS HE PROBABLY WOULDN'T HAVE TAKEN IT IF IT WEREN'T AT STANFORD FROM WHICH HE HIS WIFE AND THEIR FOUR SONS GRADUATED WHILE HE IS DELIGHTED TO BE ABLE TO SERVE THE UNIVERSITY HE SAYS I HAD A MONEY MANAGEMENT FIRM MYSELF BEFORE I CAME TO STANFORD AND I'M MAKING A LOT LESS NOW THAN I WAS THEN STILL MR HOAGLAND'S SALARY IS COMPETITIVE WITH THOSE PAID AT HARVARD THE NATION'S OLDEST AND WEALTHIEST INSTITUTION OF HIGHER LEARNING HARVARD WHICH EMPLOYS A STAFF OF MORE THAN 100 TO MANAGE ITS NEARLY 55 BILLION ENDOWMENT INHOUSE PAYS SOME OF THE HIGHEST WAGES IN THE ENDOWMENTMANAGEMENT FIELD HARVARD MANAGEMENT CO PRESIDENT JACK R MEYER PULLED IN 739000 IN FISCAL 1992 ACCORDING TO FILINGS WITH THE INTERNAL REVENUE SERVICE ONE OF MR MEYER'S ASSOCIATES DAVE MITTELMAN COLLECTED MORE THAN 12 MILLION IN SALARY AND BONUSES AS DIRECTOR OF HARVARD'S FIXEDINCOME INVESTMENTS BY COMPARISON HARVARD PRESIDENT NEIL L RUDENSTINE'S 207541 SALARY MIGHT SEEM ALMOST PALTRY MR MEYER DECLINED TO COMMENT BUT HARVARD OFFICIALS HAVE SAID IN THE PAST THAT THEY NEED TO PAY WALL STREETLEVEL SALARIES IN ORDER TO ATTRACT WALL STREETLEVEL PROFESSIONALS MEANWHILE THOUGH HARVARD'S RETURNS HAVE LAGGED BEHIND THOSE OF MANY COLLEGES AND UNIVERSITIES AVERAGING 149 ANNUALLY BETWEEN FISCAL 1983 AND 1992 ACCORDING TO THE UNIVERSITY'S MOST RECENT FINANCIAL REPORT EMORY UNIVERSITY IN ATLANTA BY CONTRAST EARNED SOME OF THE HIGHEST RETURNS IN THE INDUSTRY AVERAGING 226 SINCE 1985 THE EARLIEST DATE FOR WHICH ITS FIGURES ARE AVAILABLE EMORY EXECUTIVE VICE PRESIDENT JOHN L TEMPLE WHO OVERSEES THE ENDOWMENT EARNED 171600 LAST YEAR BUT EMORY WITH MORE THAN HALF OF ITS 175 BILLION ENDOWMENT IN DONATED COCACOLA CO STOCK IS SOMEWHAT OF AN ANOMALY AMONG INSTITUTIONS WITH MORE TYPICAL PORTFOLIOS YALE UNIVERSITY DID PARTICULARLY WELL EARNING AN AVERAGE RETURN OF 171 SINCE 1983 AFTER THE DEDUCTION OF MOST MANAGEMENT FEES YALE CHIEF INVESTMENT OFFICER DAVID SWENSEN'S SALARY IS UNDERSTOOD TO BE IN THE 200000 RANGE ALTHOUGH IT ISN'T LISTED ON THE UNIVERSITY'S INTERNAL REVENUE SERVICE FILINGS AND MR SWENSEN DECLINED TO CONFIRM THE AMOUNT THE PERFORMANCE OF THE LARGEST UNIVERSITY ENDOWMENTS COMPARES FAVORABLY WITH THAT OF MOST COMPARABLY SIZED PENSION FUNDS THE MEDIAN RATE OF RETURN FOR A REPRESENTATIVE POOL OF ABOUT 300 PENSION FUNDS 1 BILLION OR LARGER WAS 148 ANNUALLY BETWEEN FISCAL 1983 AND 1992 ACCORDING TO A STUDY BY THE WILSHIRE ASSOCIATES TRUST UNIVERSE COMPARISON SERVICE THOSE WHOSE PERFORMANCE WAS IN THE TOP 5 EARNED 162 OR BETTER NIKHIL DEOGUN CONTRIBUTED TO THIS ARTICLE 9307260062 930726 LEISURE & ARTS THE GALLERY WHERE ART MEETS SCIENCE BY TESSA DECARLO SAN FRANCISCO AT MOST ART EXHIBITS PEOPLE STAND ABOUT QUIETLY AND KEEP THEIR HANDS TO THEMSELVES BUT AT THE EXPLORATORIUM A MUSEUM HERE THAT MIXES HIGHCONCEPT ART AND BASICCONCEPT SCIENCE AUDIENCE PARTICIPATION IS PRACTICALLY REQUIRED CHARACTERISTIC OF THE EXPLORATORIUM'S TECHNOPRIMITIVE HANDSON AESTHETIC IS CLOUD RINGS BY NED KAHN A ROUND DINNERTABLESIZED CONSTRUCTION THAT'S ONE OF FOUR WORKS IN THE SHOW ENVIRONMENTAL ART WHICH RUNS THROUGH SEPT 6 BENEATH A HOLE IN THE CENTER OF THE SCULPTURE'S RUBBERY BLACK TOP IS A BOWL OF ROILING WHITE FOG PUSH DOWN ON THE TOP THEN RELEASE A THREEFOOTDIAMETER RING OF SWIRLING MIST SHOOTS OUT OF THE OPENING RISES TOWARD THE MUSEUM'S HIGHDOMED CEILING AND GRADUALLY DISAPPEARS INTO THE SURROUNDING AIR LIKE A LOT OF ART THESE DAYS MR KAHN'S PIECE COMES WITH AN EXPLANATORY LABEL BUT INSTEAD OF PUSHING THE ARTIST'S POLITICALSEXUAL AGENDA IT DISCLOSES THAT THE CLOUD RINGS ARE A KIND OF VORTEX A ROTATING MASS OF LIQUID OR GAS STRUCTURALLY SIMILAR TO WHIRLPOOLS AND HURRICANES TWO OTHER PIECES IN THE SHOW INVITE VIEWER INTERACTION MEANDER BY MICHAEL BROWN IS A TILTED GLASS TABLE COVERED WITH ZIGZAGGING RIVULETS OF WATER THAT CAN BE REDIRECTED WITH THE TOUCH OF A FINGER AL JARNOW'S TERRA FORMS DUET FOR SANDBOX AND COMPUTER COMBINES A MINIATURE SAND CANYON SHAPED BY A SHIFTABLE STREAM OF WATER AND A COMPUTERGENERATED TIMELAPSE FILM OF THE MINICANYON'S CHANGING GEOLOGY THE FOURTH WORK FILMMAKER ANDREJ ZDRAVIC'S WATER WAVES CONSISTS OF A ROW OF PLUSH THEATER SEATS FACING 10 LARGE TV SCREENS IMAGES OF RIPPLES WAVES AND GIANT BREAKERS FLOW ACROSS THE SCREENS MR ZDRAVIC SAYS HE ABANDONED EARLY PLANS TO MAKE WATER WAVES INTERACTIVE ONE OF THE MOST IMPORTANT ASPECTS OF THIS IS THE MEDITATIVE ASPECT HE EXPLAINS I REALIZED IF I DIDN'T HAVE BUTTONS TO PUSH PEOPLE MIGHT ACTUALLY SIT DOWN AND WATCH ALTHOUGH IT'S HOUSED IN THE PALACE OF FINE ARTS A DOMED AND COLONNADED BEAUXARTS RELIC OF THE 1915 PANAMAPACIFIC EXPOSITION THE EXPLORATORIUM IS IN MANY WAYS AN UNLIKELY ART MILIEU THE CAVERNOUS 100000SQUAREFOOT MUSEUM HAS SOME 70 ARTWORKS ON PERMANENT EXHIBIT THE RESULT OF AN AMBITIOUS ARTISTINRESIDENCE PROGRAM BUT THEY ARE MIXED IN WITH NEARLY 600 HANDSON SCIENTIFIC DISPLAYS RANGING FROM COW'SEYE DISSECTIONS TO EXPERIMENTS WITH ELECTROMAGNETS TO DEVICES THAT ALTER THE PITCH AND TONE OF YOUR VOICE ALL OF THE PIECES ARE CREATED AT THE MUSEUM'S CHAOTIC ONSITE WORKSHOP OFTEN OUT OF OLD MACHINE PARTS BICYCLE WHEELS AND OTHER DISCARDS AND THE DIFFERENCE BETWEEN ARTWORK AND SCIENCE EXHIBIT ISN'T ALWAYS CLEAR MOREOVER THE EXPLORATORIUM'S VAST DIM INTERIOR WITH ITS BLINKING LIGHTS WHIRRING BOOMING MACHINES AND SQUEALING CHILDREN SEEMS TO CONTRADICT EVERYTHING A WELLLIT WELLBRED ART GALLERY STANDS FOR WE FEEL THAT IF WE PUT OUR ART ON A PEDESTAL IN A WHITE ROOM THAT SETS PEOPLE UP FOR DEALING WITH IT LIKE ART SAYS PETER RICHARDS DIRECTOR OF THE MUSEUM'S ART PROGRAMS INSTEAD WE JUST STICK IT OUT THERE AND LET PEOPLE DEAL WITH IT INTERACT WITH IT ENJOY IT MR KAHN AN ARTIST IN RESIDENCE AT THE EXPLORATORIUM AND AUTHOR OF THE MUSEUM'S POPULAR TORNADO AN EIGHTFOOTTALL SWIRL OF MIST AND SEVERAL OTHER WEATHERRELATED PIECES ACKNOWLEDGES THAT THE EXPLORATORIUM'S AMBIENCE IMPOSES CERTAIN RESTRICTIONS ON ARTISTS FOR ONE THING WORKS INVOLVING DELICATE EFFECTS DON'T PLAY WELL GALLERIES GIVE ME A VENUE FOR DOING THINGS THAT ARE MORE SUBTLE HE SAYS YOU PUT SUBTLE PIECES IN HERE AND THEY GET TRAMPLED VISUALLY AND ACOUSTICALLY AND SOMETIMES LITERALLY IT IS PARTLY FOR THIS REASON THAT ENVIRONMENTAL ART IS TUCKED INTO A LARGE ALCOVE AT THE BACK OF THE MUSEUM THE FIRST TIME ARTWORK HAS BEEN SEGREGATED FROM THE MUSEUM'S OTHER OFFERINGS SINCE IT WAS FOUNDED IN 1969 THE EXPLORATORIUM HAS RECEIVED NUMEROUS GRANTS FROM THE NATIONAL ENDOWMENT FOR THE ARTS AND OTHER FOUNDATIONS AND ART FROM THE MUSEUM HAS BEEN EXHIBITED IN MORE CONVENTIONAL ART SPACES ALL OVER THE WORLD NEVERTHELESS LOCAL CRITICS DO NOT TAKE ITS ART PROGRAM VERY SERIOUSLY WHEN ENVIRONMENTAL ART FIRST OPENED THE ARTICLE THAT APPEARED IN THE SAN FRANCISCO CHRONICLE WAS WRITTEN BY THE PAPER'S SCIENCE EDITOR NOT ITS ART CRITIC KENNETH BAKER I THINK THE EXPLORATORIUM HAS PRETENSIONS BUT IT'S JUST NOT ORIENTED TOWARD PRODUCING ART PHENOMENA MR BAKER SAYS IT'S MORE A WAY OF ENTERTAINING A BROADER AUDIENCE I DON'T THINK I OR ANYONE ELSE IN TOWN SEES IT AS AN ART VENUE SUCH CRITICISM DOESN'T SURPRISE DIRECTOR RICHARDS WHO REVELS IN THE MUSEUM'S UNUSUAL MANDATE WE'RE THE OPPOSITE OF THE NOTION OF ART AS A KIND OF ELITIST ACTIVITY HE SAYS WE'RE NOT A REPOSITORY WE'RE AN ONGOING PROCESS THAT'S PRETTY CHALLENGING TO PEOPLE WHO WRITE ABOUT ART THAT'S HUNG ON THE WALL FOR HIS PART MR KAHN IS MORE INTERESTED IN THE WONDERS OF NATURAL SYSTEMS THAN IN QUESTIONS OF ARTWORLD STATUS A LOT OF ART TODAY IS SPINNING OFF INTO ITSELF WITH SELFREFERENTIAL THINGS ABOUT SELFREFERENTIAL THINGS HE ASSERTS SO MUCH OF IT IS EGO MR KAHN PUMPS OUT A CLOUD RING AND WATCHES IT SWIRL TOWARD THE CEILING THESE VORTICES ARE JUST PHENOMENA HE SAYS THEY'RE JUST WHAT THEY ARE MS DECARLO IS A WRITER IN NAPA VALLEY CALIF 9307260061 930726 BUSINESS BRIEF SANBORN INC FIRM IS NO LONGER IN DEFAULT AFTER AMENDING LOAN PACT SANBORN INC SAID IT IS NO LONGER IN DEFAULT OF ITS BANK CREDIT LINE AS A RESULT OF SIGNING AN AMENDMENT TO ITS EXISTING LOAN AGREEMENT WITH THE BANK OF BOSTON THE WRENTHAM MASS LIQUID WASTE MANAGEMENT COMPANY SAID THE NEW TERMS WERE AGREED UPON FOLLOWING NEGOTIATIONS WITH THE BANK THE TEMPORARY DEFAULT HAD BEEN CAUSED BY THE COMPANY'S RESTRUCTURING ACTIVITIES THE COMPANY SAID THE COMPANY SAID IT EXPECTS TO RELEASE ITS SECONDQUARTER RESULTS IN AUGUST AND AT THIS TIME ANTICIPATES IMPROVED RESULTS FOR THE THIRD AND FOURTH QUARTERS SANBORN HAS SAID THE SECONDQUARTER RESULTS WILL INCLUDE A NONRECURRING WRITEDOWN OF ASSETS A RESTRUCTURING CHARGE OF ABOUT 26 MILLION AND UNSPECIFIED OPERATIONAL LOSSES AS A RESULT OF THE COMPANY'S DECISION TO PLACE ITS EMPHASIS ON THE SERVICE SECTOR 9307260060 930726 BUSINESS BRIEF USX CORP US STEEL GROUP WILL POST PRETAX GAIN OF 100 MILLION USX CORP'S US STEEL GROUP SAID IN PITTSBURGH THAT IT WILL RECORD A PRETAX GAIN OF 100 MILLION IN ITS SECOND QUARTER BECAUSE OF THE DISPOSAL OF ASSETS THAT INCLUDE ITS CUMBERLAND MINE THE STEELMAKER'S GAIN WILL PARTLY OFFSET AN AFTERTAX CHARGE OF ABOUT 400 MILLION RELATED TO AN ANTITRUST LAWSUIT INVOLVING A FORMER UNIT IN A PROSPECTUS FOR AN OFFERING OF NINE MILLION SHARES US STEEL SAID ITS PREVIOUS FORECAST OF OPERATING PROFIT OF 50 MILLION TO 60 MILLION WILL INCLUDE AN 11 MILLION BENEFIT FROM INSURANCE RESERVES IN THE 1992 SECOND QUARTER US STEEL HAD OPERATING PROFIT OF 34 MILLION WHICH TRANSLATED TO NET INCOME OF 2 MILLION OR THREE CENTS A SHARE THE COMPANY WILL REPORT RESULTS TOMORROW 9307260059 930726 LEISURE & ARTS BOOKSHELF RACE JUSTICE AND INTEGRITY IN THE OLD SOUTH BY BRUCE BAWER BAYONNE THE FICTITIOUS LOUISIANA RIVER TOWN IN WHICH ERNEST J GAINES HAS SET ALL EIGHT OF HIS NOVELS IS NOT FAR FROM THE MISSISSIPPI LOWLANDS IMMORTALIZED BY WILLIAM FAULKNER YET IF FAULKNER'S LUSH PENETRATING PROSE SEEMS EMINENTLY SUITED TO THE REGION'S SULTRY CLIMATE AND RACIAL TENSIONS MR GAINES'S NOVELS ARE WRITTEN IN A LOWKEY MATTEROFFACT PROSE THAT MAY SURPRISE THE FIRSTTIME READER CONSIDER FOR EXAMPLE MR GAINES'S NEWEST NOVEL A LESSON BEFORE DYING KNOPF 256 PAGES 21 WHICH TAKES PLACE DURING THE LATE 1940S JEFFERSON A GUILELESS YOUNG BLACK MAN HAS BEEN WRONGLY ACCUSED OF COMPLICITY IN THE MURDER OF A WHITE LIQUORSTORE OWNER HIS ATTORNEY TELLS THE ALLWHITE JURY THAT JEFFERSON IS INCAPABLE OF PLANNING SUCH A CRIME FOR HE IS NOT A MAN REALLY BUT A THING TO HOLD THE HANDLE OF A PLOW A THING TO LOAD YOUR BALES OF COTTON A THING TO DIG YOUR DITCHES TO CHOP YOUR WOOD TO PULL YOUR CORN THE STRATEGY DOESN'T WORK AND JEFFERSON IS SENTENCED TO DEATH HIS AILING GODMOTHER HAS ONLY ONE WISH THAT JEFFERSON WHO HAS BEEN AS DEVASTATED BY HIS LAWYER'S LINE OF DEFENSE AS BY THE VERDICT WILL GO TO THE ELECTRIC CHAIR WITH HIS HEAD UP KNOWING HIMSELF TO BE NOT A THING BUT A MAN TO THIS END SHE ASKS GRANT WIGGINS THE COLLEGEEDUCATED TEACHER AT BAYONNE'S BLACK SCHOOL TO MEET WITH JEFFERSON REGULARLY WIGGINS THE NARRATOR IS LOATH TO GET INVOLVED HE DOESN'T SHARE THE OLD LADY'S FERVENT RELIGIOUS FAITH AND DOESN'T APPRECIATE BEING PUT IN A POSITION WHERE HE HAS TO TOADY TO THE IGNORANT WHITE BIGOTS WHO WORK AT THE JAIL HOUSE WIGGINS IS A SOUTHERNBLACK VARIATION ON THAT OLD HUMPHREY BOGART MOVIE CLICHE THE CYNICAL RELUCTANT HERO HE'S CONSTANTLY COMPLAINING ABOUT THE POINTLESSNESS OF HIS PRESENCE IN BAYONNE WHERE THE ONLY THING AN EDUCATED BLACK MAN CAN DO IS TEACH READING WRITING AND ARITHMETIC TO KIDS WHO WILL GROW UP TO BECOME FIELD WORKERS ON SOME PLANTATION YET AS WE LEARN FROM SOME CONTRIVED EXPOSITORY DIALOGUE BETWEEN WIGGINS AND HIS LOVER VIVIAN A ONEDIMENSIONAL CHARACTER WHOSE ROLE NEVER RISES ABOVE THE FUNCTIONAL HE'S ALREADY GONE OFF TO CALIFORNIA ONCE ONLY TO RETURN HOME DEEP DOWN HE'S COMMITTED TO THIS PLACE AND FEELS NEEDED HERE AND INDEED HE IS BY HIS CONDUCT ON THE DAY OF HIS EXECUTION JEFFERSON WILL EITHER INSPIRE OR DEMORALIZE HIS FELLOW BLACKS IN BAYONNE AND CHALLENGE OR CONFIRM HIS WHITE EXECUTIONERS' IMAGE OF BLACKS WIGGINS COMES TO REALIZE THAT FOR JEFFERSON TO SEE HIMSELF AS A MAN IS IMPORTANT NOT JUST TO JEFFERSON BUT TO THE ENTIRE TOWN SO WIGGINS PERSEVERES THE BREAKTHROUGH COMES WHEN JEFFERSON WHO HAS BEEN SAD SURLY AND SELFDEPRECATING TURNS TO WIGGINS AND TELLS HIM TO THANK HIS STUDENTS FOR SENDING HIM PECANS THIS LINE RECALLS THE CLIMACTIC SCENE I THE CELEBRATED 1974 TV MOVIE THE AUTOBIOGRAPHY OF MISS JANE PITTMAN BASED ON MR GAINES'S BESTSELLING NOVEL IN WHICH THE ANCIENT MISS JANE STRIKES A BLOW FOR DESEGREGATION BY DRINKING FROM A WHITESONLY WATER FOUNTAIN JEFFERSON'S THANK YOU IS A SIMILAR SEEMINGLY TRIVIAL EVERYDAY ACT THAT CARRIES HUGE MORAL SIGNIFICANCE MR GAINES'S FICTION HAS CONTINUALLY ATTESTED TO THE PSYCHOLOGICAL AND SYMBOLIC IMPORTANCE OF APPARENTLY MINOR GESTURES MR GAINES REMINDS US MOVINGLY O MANY THINGS THAT THE SIMPLEST OF ACTS CAN BE HEROIC THAT IT IS IMPORTANT TO SET A MORAL EXAMPLE FOR OTHERS ESPECIALLY THE YOUNG THAT STRUGGLES AGAINST INEQUITY ARE CARRIED ON INDIVIDUAL BY INDIVIDUAL AND THAT EVERYONE WHO PARTICIPATES IN SUCH STRUGGLES WAGES A BATTLE NOT ONLY IN THE WORLD BUT WITHIN HIMSELF BY THE BOOK'S END WHICH SURPRISES WITH ITS POWER IT IS CLEAR NOT ONLY WHAT THE LESSON REFERRED TO IN THE TITLE IS BUT ALSO THAT JEFFERSON IS NOT THE ONLY ONE WHO HAS LEARNED IT WHILE THIS BOOK'S HEART IS MOST ASSUREDLY IN THE RIGHT PLACE IT IS IN A NUMBER OF WAYS RATHER DISAPPOINTING WHILE WIGGINS MAKES A CREDIBLE ENOUGH PROTAGONIST THE TRANSFORMATION OF JEFFERSON FROM SELFDISPARAGING THING TO SELFRESPECTING MAN DOESN'T QUITE CONVINCE TOO OFTEN THE BOOK FEELS FORMULAIC WRITTEN TO OUTLINE ITS CHARACTERS DON'T RISE SUFFICIENTLY OFF THE PAGE AND ITS SETTING FAILS TO BURST INTO LIFE WITH SIGHTS SMELLS AND SOUNDS YET TO COMPLAIN ABOUT THE LACK OF LOCAL COLOR IS TO MISS THE POINT MR GAINES'S PLAIN STYLE ULTIMATELY PROVES APPROPRIATE BECAUSE HIS BOOK IS LESS ABOUT THE RIVERFRONT MILIEU THAN ABOUT THE NAKED MORAL TRUTHS OF THESE PEOPLE'S SHARED PREDICAMENT AND MR GAINES KNOWS THAT PREDICAMENT INSIDE OUT HE UNDERSTANDS THE WORKINGS OF INSTITUTIONALIZED PREJUDICE AND CAPTURES PERFECTLY THE COMPLEX TENSIONS BETWEEN BLACK AND WHITE IN THE END WHAT IS MOST SURPRISING ABOUT THIS BOOK IS ITS TOUGH UNSENTIMENTAL SPIRITUAL POWER JEFFERSON WHOM WE FIRST ENCOUNTER AS A SUPPOSED SUBHUMAN HAS BY THE FINAL PAGES EMERGED THOUGH MR GAINES DOESN'T LEAN TOO HARD ON THE COMPARISON AS A CHRIST FIGURE AN EXEMPLARY VICTIM WHILE WIGGINS WHOM HIS AUNT CONDEMNS AS AN ATHEIST HAS GROWN FROM A SECULAR INTO A SPIRITUAL TEACHER ITS DEFICIENCIES NOTWITHSTANDING A LESSON BEFORE DYING IS A VERY SPECIAL BOOK ABOUT PREJUDICE THE VALUE OF INDIVIDUAL INTEGRITY AND THE EXTRAORDINARY RESOURCES OF THE HUMAN SPIRIT 9307260058 930726 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 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 59 DAYS 313 60 TO 89 DAYS 315 90 TO 119 DAYS 320 120 TO 149 DAYS 322 150 TO 179 DAYS 332 180 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 318 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 270 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 307 ONE MONTH 315 THREE MONTHS 339 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 309 60 DAYS 313 90 DAYS 318 120 DAYS 322 150 DAYS 333 180 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 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 315 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 717 60 DAYS 725 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 716 60 DAYS 726 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 9307260057 930726 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ADT LTD 18 MILLION SHARES VIA FIRST BOSTON CORP ALLIANCE WORLD DOLLARINITIAL FOUR MILLION SHARES VIA LEHMAN BROTHERS ARETHUSA OFFSHORE LTD INITIAL 85 MILLION SHARES VIA SALOMON BROTHERS ATMEL CORP TWO MILLION SHARES VIA ALEX BROWN & SONS AT&T CAPITAL CORP INITIAL FIVE MILLION SHARES VIA LEHMAN BROTHERS AUTOMOTIVE INDUSTRIES HOLDING INC 46 MILLION SHARES VIA KIDDER PEABODY CYGNE DESIGNS INC INITIAL 24 MILLION SHARES VIA PAINEWEBBER EQUITY RESIDENTIAL PROPERTIES TRUST INITIAL OFFERING OF 10940000 SHARES OF BENEFICIAL INTEREST VIA MERRILL LYNCH GENERAL ATLANTIC RESOURCES INC INITIAL 34 MILLION SHARES 27 MILLION IN THE US/CANADA VIA LEHMAN BROTHERS GLOBAL MARINE INC 15 MILLION SHARES VIA GOLDMAN SACHS GREENFIELD INDUSTRIES INITIAL OFFERING OF 6250000 SHARES VIA MORGAN STANLEY GTI CORP 400000 SHARES VIA NEEDHAM MERIDIAN DIAGNOSTICS INC TWO MILLION SHARES VIA PRUDENTIAL MARICOPA CO ARIZ 100 MILLION TAXANTICIPATION NOTES SERIES 1993 VIA COMPETITIVE BID MINNESOTA STATE 210 MILLION GENERALOBLIGATION BONDS DUE 2013 AND 14762 MILLION REFUNDING BONDS DUE 2011 VIA COMPETITIVE BID NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY 100 MILLION BONDS PUBLIC SCHOOLS SMALL PROJECT LOAN PROGRAM VIA COMPETITIVE BID CALIFORNIA PUBLIC WORKS BOARD 322 MILLION LEASE REVENUE REFUNDING BONDS 1993A REGENTS OF THE UNIVERSITY OF CALIFORNIA DUE 19942009 2015 AND 2023 VIA A REINOSO & CO GROUP CENTRAL VALLEY FINANCING AUTHORITY CALIF 144 MILLION COGENERATION PROJECT REVENUE BONDS VIA A GOLDMAN SACHS GROUP CINCINNATI OHIO STUDENT LOAN FUNDING CORP 100 MILLION SERIES A SENIORSUBORDINATED LIEN BONDS AND SERIES B JUNIOR SUBORDINATE LIEN BONDS VIA A SMITH BARNEY HARRIS UPHAM & CO GROUP CONNECTICUT STATE 450 MILLION SPECIAL ASSESSMENT UNEMPLOYMENT COMPENSATION ADVANCE FUND REVENUE BONDS VIA A GOLDMAN SACHS GROUP ILLINOIS HEALTH FACILITY AUTHORITY 119 MILLION OSF HEALTH CARE SYSTEM REVENUE BONDS DUE 20132023 VIA A GOLDMAN SACHS GROUP JACKSONVILLE FLA ELECTRIC AUTHORITY 486 MILLION REVENUE REFUNDING BONDS VIA A LEHMAN BROS GROUP MATAGORDA COUNTY NAVIGATION DISTRICT NO 1 TEXAS 2209 MILLION POLLUTION CONTROL REVENUE BONDS FOR CENTRAL POWER & LIGHT CO PROJECT SERIES 1993 VIA A GOLDMAN SACHS GROUP NORTH CAROLINA EASTERN MUNI POWER AGENCY 540 MILLION BONDS SERIES 1993 C D G DUE 19972021 VIA A SMITH BARNEY GROUP ORANGE COUNTY WATER DISTRICT CALIF 160 MILLION BONDS VIA A SMITH BARNEY GROUP SARASOTA COUNTY SCHOOL BOARD FLA 11527 MILLION MBIAINSURED BONDS VIA A MERRILL LYNCH & CO GROUP 9307260056 930726 BUSINESS BRIEF KRELITZ INDUSTRIES INC CBI HOLDING UNIT TO BUY COMPANY NORTHERN DRUG KRELITZ INDUSTRIES INC WHICH PREVIOUSLY HAD AGREED TO BE ACQUIRED BY NORTHERN DRUG CO SAID A THIRD COMPANY INTENDS TO ACQUIRE BOTH IT AND NORTHERN KRELITZ A MINNEAPOLIS WHOLESALER OF DRUGS AND OTHER PHARMACEUTICAL AND PERSONALCARE PRODUCTS SAID ITS DIRECTORS APPROVED AN ACQUISITION PROPOSAL FROM COMMON BROTHERS INC ELMSFORD NY A UNIT OF DRUG WHOLESALER CBI HOLDING CO SPECIFIC TERMS WEREN'T DISCLOSED THE NEW ACCORD CALLS FOR COMMON BROTHERS TO ACQUIRE BOTH THE STOCK OF KRELITZ AND IN A SEPARATE TRANSACTION THAT OF NORTHERN DRUG A DULUTH MINN DRUG WHOLESALER TERMS OF THAT DEAL WEREN'T DISCLOSED AND COMPANY OFFICIALS COULDN'T BE REACHED KRELITZ HOLDERS MUST APPROVE THE COMPANY'S ACQUISITION 9307260055 930726 MANAGER'S JOURNAL NOTHING FAIR ABOUT STRIKER FAIRNESS' ACT BY DONALD T O'CONNOR PRESIDENT CLINTON CONGRESSIONAL LEADERS AND ORGANIZED LABOR HAVE MADE IT CLEAR THAT AT THE TOP OF THEIR AGENDA IS A BILL THAT WOULD BAN THE USE OF PERMANENT REPLACEMENTS IN THE EVENT OF A STRIKE THE HOUSE PASSED THE MEASURE IN JUNE AND IT'S DUE TO COME UP BEFORE THE SENATE IN AUGUST SUPPORTERS OF THE BILL HAVE CHRISTENED IT THE CESAR CHAVEZ WORKPLACE FAIRNESS ACT BUT MY 27 YEARS OF EXPERIENCE NEGOTIATING LABOR AGREEMENTS LEAD ME TO CONCLUDE THAT FAIRNESS IN THIS BILL IS HARD TO FIND THERE'S ONE THING THAT CONGRESSMEN IN WASHINGTON SHOULD GET STRAIGHT NOBODY WANTS TO HAVE A STRIKE MUCH LESS HIRE PERMANENT REPLACEMENTS SINCE 1966 I HAVE NEGOTIATED OVER 150 LABOR AGREEMENTS AND VERY FEW OF THEM HAVE RESULTED IN STRIKES WHEN STRIKES HAVE OCCURRED EMPLOYERS HAVE ALMOST ALWAYS RULED OUT THE USE OF PERMANENT REPLACEMENTS FEARING PUBLICRELATIONS PROBLEMS STRIKE VIOLENCE AND COSTLY LITIGATION IN MY TIME AS CHIEF NEGOTIATOR ONLY ONE EMPLOYER HAS RESORTED TO USING PERMANENT REPLACEMENTS THE CIRCUMSTANCES AND RESULTS OF THAT CASE DEMONSTRATE WHY THE WORKPLACE FAIRNESS ACT IS UTTERLY MISNAMED IN 1991 DUE TO CHANGES IN MEDICARE AND MEDICAID REIMBURSEMENT RATES THAT HAD CLOSED OVER 500 COMMUNITY HOSPITALS AROUND THE COUNTRY SINCE 1980 CANONSBURG GENERAL A SMALL HOSPITAL 25 MILES OUTSIDE PITTSBURGH FACED AN UNCERTAIN ECONOMIC FUTURE WITH 70 OF ITS REVENUE DEPENDENT ON MEDICARE AND MEDICAID PAYMENTS THE HOSPITAL WAS CONVINCED THAT IT WOULD NOT SURVIVE THE DECADE IF IT COULD NOT KEEP ITS LABOR COSTS IN LINE WITH THE INCREASES IN MEDICARE AND MEDICAID REIMBURSEMENT RATES IN FEBRUARY 1991 THE CONTRACT EXPIRED BETWEEN THE HOSPITAL AND A DISTRICT CHAPTER OF THE SERVICE EMPLOYEES INTERNATIONAL UNION WHOSE MEMBERS INCLUDE NURSING AIDES NUTRITIONAL ASSISTANCE AIDES AND MAINENANCE AND HOUSEKEEPING EMPLOYEES I WAS CHIEF LEGAL NEGOTIATOR FOR THE HOSPITAL AT THE TIME THE HOSPITAL PROPOSED AN INCREASE OF 89 IN WAGES AND BENEFITS OVER THREE YEARS AN AMOUNT THAT REFLECTED THE EXPECTED INCREASES IN THE REIMBURSEMENT RATES DURING THE SAME PERIOD THE UNION COUNTERED WITH A TWOYEAR PACKAGE WORTH 133 MORE THAN DOUBLE THE EXPECTED REIMBURSEMENT RATES AFTER MONTHS OF NEGOTIATIONS THE UNION WENT ON STRIKE FOR THE FIRST EIGHT WEEKS OF THE STRIKE THE HOSPITAL KEPT GOING BY INCREASING THE RESPONSIBILITIES AND HOURS OF NURSES AND MANAGEMENT FROM 40 TO 72 HOURS A WEEK AS WELL AS BY HIRING 45 TEMPORARY REPLACEMENTS AT THE END OF TWO MONTHS HOWEVER THE REGULAR STAFF WAS BEGINNING TO BURN OUT AND THERE WAS REAL CONCERN WHETHER THE QUALITY OF CARE COULD BE MAINTAINED THE HOSPITAL WAS IN DIRE NEED OF MORE PERSONNEL ESPECIALLY IN SKILLED POSITIONS SUCH AS CERTIFIED NURSING ASSISTANTS AND MEDICAL TRANSCRIPTIONISTS HOWEVER POTENTIAL EMPLOYEES COULD NOT BE PERSUADED TO LEAVE OTHER PERMANENT JOBS WITHOUT THE GUARANTEE OF A LASTING POSITION AT THE HOSPITAL EVEN SO THE DECISION TO USE PERMANENT REPLACEMENTS WAS A DIFFICULT AND SENSITIVE ONE AFTER AGONIZING AND POSTPONING THE DECISION SEVERAL TIMES THE HOSPITAL HIRED PERMANENT REPLACEMENTS CONSIDERING IT TO BE THE ONLY OPTION THAT WOULD PROVIDE QUALITY HEALTH CARE THE UNION RESPONDED WITH MASS DEMONSTRATIONS AND OVER A THREEMONTH PERIOD MORE THAN 200 PEOPLE WERE ARRESTED FOR DISRUPTIVE ACTIONS SUCH AS BLOCKING HOSPITAL ENTRANCES THE UNION WAS FINED 20000 AND ORDERED TO POST A 25000 BOND FOR POTENTIAL DAMAGES CAUSED TO THE HOSPITAL TOWARD THE END OF AUGUST 150 DAYS AFTER THE STRIKE BEGAN WEARINESS AND FRUSTRATION PERSUADED BOTH PARTIES TO SUBMIT THE ISSUE TO BINDING ARBITRATION A PROCESS GENERALLY ANATHEMA TO BOTH LABOR AND MANAGEMENT IT WAS ALSO AGREED THAT WHATEVER THE ARBITRATOR DECIDED THE STRIKING WORKERS COULD RETURN TO THEIR JOBS AND THE PERMANENT REPLACEMENTS WOULD BE LAID OFF BY THE WAY THIS SHOWS THAT THE PHRASE PERMANENT REPLACEMENTS IS OFTEN A MISNOMER IF MANAGEMENT AND THE UNION ULTIMATELY RESOLVE THEIR DISAGREEMENTS THE REPLACEMENTS USUALLY GET REPLACED BY THE RETURNING STRIKERS AFTER FIVE DAYS OF HEARINGS AND MONTHS OF DELIBERATION ARTHUR PORTER A LABOR ECONOMIST AND ARBITRATOR FROM OHIO HANDED DOWN HIS DECISION WHICH WAS A NEAR COPY OF THE HOSPITAL'S ORIGINAL OFFER HE SETTLED ON A 91 INCREASE IN WAGES AND BENEFITS OVER THREE YEARS CITING THE PRECARIOUS POSITION OF THE HOSPITAL DUE TO DECLINING REIMBURSEMENT RATES IF THE HOSPITAL HAD BEEN UNABLE TO HIRE PERMANENT REPLACEMENTS IT WOULD HAVE FACED THE CHOICE OF ENDANGERING ITS PATIENTS SHUTTING DOWN THUS PUTTING THE NONSTRIKING EMPLOYEES OUT OF WORK AND THE PATIENTS ON THE STREET OR ACCEDING TO THE UNION'S WAGE AND BENEFIT DEMANDS RESULTING IN AN INEVITABLE CLOSING UNFORTUNATELY THE CANONSBURG GENERAL HOSPITAL STRIKE IS NOT AN ISOLATED EXAMPLE OF THE IMPORTANCE TO EMPLOYERS OF RETAINING WHEN NECESSARY PERMANENT REPLACEMENTS WHEN FACED WITH A LONG OR UNWARRANTED STRIKE WHILE THE USE OF PERMANENT REPLACEMENTS IS DIFFICULT AND OFTEN COMES AS A LAST RESORT IT IS AT TIMES THE ONLY ANSWER TO UNREASONABLE WAGE DEMANDS OR UNJUSTIFIED STRIKES THIS IS TRUE NOT ONLY FOR HOSPITALS AND OTHER CRITICAL FACILITIES LIKE NURSING HOMES AND NUCLEAR POWER PLANTS BUT ALSO FOR BUSINESSES TRYING TO STAY AFLOAT IN TODAY'S HIGHLY COMPETITIVE MARKETS IF THE PRESIDENT AND THE SENATE IGNORE THE TEACHINGS OF CANONSBURG GENERAL UNIONS WILL HOLD ALL THE CARDS AND MANY EMPLOYERS WILL FACE A HOBSON'S CHOICE GO OUT OF BUSINESS NOW OR DO SO LATER MR O'CONNOR IS A PARTNER IN THE LABOR AND EMPLOYMENT LAW SECTION OF A PITTSBURGHBASED LAW FIRM 9307260054 930726 MGM NAMES FRANK MANCUSO CHAIRMAN CEO OVITZ PLAN TO AID STUDIO REVIVES UNITED ARTISTS TIDIES UP BALANCE SHEET BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IN A SERIES OF MOVES DESIGNED TO BUFF UP A TARNISHED STUDIO FOR FUTURE SALE METROGOLDWYNMAYER INC NAMED A NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESURRECTED THE FAMOUS UNITED ARTISTS NAME AND ANNOUNCED NEW FUNDING AND A MAJOR CLEANUP OF ITS BALANCE SHEET FRANK G MANCUSO FORMER CHAIRMAN OF PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PICTURES UNIT SUCCEEDS ALAN LADD JR WHO RAN MGM FOR THE PAST TWO AND A HALF YEARS CREDIT LYONNAIS SA THE FRENCH STATEOWNED BANK THAT OWNS MGM WILL EXTEND ITS REVOLVING CREDIT FACILITY FOR THE STUDIO TO 400 MILLION FROM 190 MILLION ADDING 210 MILLION TO PRODUCE AND MARKET FILMS FURTHERMORE THE HOLDING COMPANY THAT THE BANK SET UP TO OWN MGM WILL ASSUME 800 MILLION IN BANK DEBT AS WELL AS EFFECT THE FUTURE REDEMPTION OF 221 MILLION IN SUBORDINATED DEBENTURES REMOVING THOSE OBLIGATIONS FROM MGM'S BOOKS THE BOND DEBT REPORTEDLY COST MGM 35 MILLION A YEAR IN INTEREST EXPENSE THE HOLDING COMPANY ALSO WILL ACQUIRE MGM'S THEATER CHAIN EUROPE'S LARGEST WITH MORE THAN 500 SCREENS IN THE UK DENMARK AND THE NETHERLANDS THIS WILL FUND MOST OF THE BOND REDEMPTION MGM STILL WILL HAVE AT LEAST 300 MILLION IN BANK DEBT NOT INCLUDING THE CREDIT LINE THE PLAN APPROVED BY MGM DIRECTORS YESTERDAY WAS ORCHESTRATED BY MICHAEL OVITZ THE HEAD OF CREATIVE ARTISTS AGENCY WHO WAS RETAINED TO ADVISE THE BANK LAST SPRING THE PLAN CALLS FOR MR MANCUSO 60 YEARS OLD TO RUN A NEWLY BIFURCATED STUDIO WITH SEPARATE MGM AND UNITED ARTISTS PRODUCTION ARMS RELEASING MOVIES THROUGH A COMMON MARKETING AND DISTRIBUTION SYSTEM EACH PRODUCTION ARM WILL HAVE ITS OWN PRESIDENT YET TO BE HIRED THIS IS SIMILAR TO WALT DISNEY CO'S FILM OPERATION WHICH RELEASES MOVIES UNDER SEVERAL LABELS INCLUDING TOUCHSTONE HOLLYWOOD AND WALT DISNEY PICTURES THIS IS A WINWIN SITUATION FOR EVERYONE SAID MR OVITZ IN A STATEMENT THE BANK GETS TO INCREASE THE VALUE OF ITS UNIQUE ASSET AND FILMMAKERS GET TWO HEALTHY MARKETPLACES FOR THEIR PRODUCT WE COULDN'T BE HAPPIER MR OVITZ STILL INTENDS TO FIND A BUYER FOR THE STUDIO WITHIN THE NEXT FEW YEARS THE REASONING IS THAT IN ABOUT 18 MONTHS WHEN MR MANCUSO'S TEAM HAS HAD A CHANCE TO MAKE AND MARKET SOME MOTION PICTURES THE COMPANY WILL BE FAR MORE ATTRACTIVE TO A BUYER ALTHOUGH MR LADD IS A VETERAN EXECUTIVE WHO IS WELLRESPECTED IN HOLLYWOOD MGM HAD LACKED THE DISTRIBUTION MUSCLE TO MAXIMIZE RETURNS WHEN IT RELEASED A FILM MR MANCUSO IS KNOWN FOR HIS EXPERTISE IN DISTRIBUTION THE MANCUSO PLAN FIRST SURFACED LATE LAST SPRING BUT THE BANK AND ITS OVERSEERS AT THE FRENCH MINISTRY OF FINANCE BALKED AT THE THOUGHT OF FUNDING FULL PRODUCTION SLATES FOR BOTH MR LADD AND MR MANCUSO ACCORDING TO INDIVIDUALS CLOSE TO THE TRANSACTION MR LADD TOO WAS LEERY OF POWERSHARING BECAUSE HE FIGURED HE WOULD EVENTUALLY BE ON THE WAY OUT ANYWAY THE OVITZMANCUSO PLAN WOULD HAVE REQUIRED MORE MONEY FROM THE BANK THERE WERE ATTEMPTS TO SECURE THIRDPARTY FINANCING BUT NOTHING MATERIALIZED THE CURRENT PLAN WILL REQUIRE A HEFTY PAYOFF OF MR LADD MORE THAN 5 MILLION AND MORE BECAUSE HE WAS FORCED OUT HE DECLINED TO RESIGN FRIDAY FOLLOWING MARATHON MEETINGS SAY THOSE CLOSE TO THE COMPANY BUT MR LADD'S DEPARTURE PROBABLY WILL LEAD TO LOWER OVERHEAD THAN THE ORIGINAL POWERSHARING PLAN BECAUSE AT LEAST A HALF DOZEN OTHER EXECUTIVES AFFILIATED WITH MR LADD ARE EXPECTED TO EXIT TOO THIS SAVES THE BANK FROM SUPPORTING TWO EXPENSIVE MANAGEMENT TEAMS MOREOVER THE UNITED ARTISTS ARM WON'T HAVE TO PRODUCE AS MANY ORIGINAL FILMS AS IT WOULD HAVE UNDER A POWERSHARING ARRANGEMENT UNDER WHICH MR MANCUSO EXPECTED PARITY WITH MR LADD UNITED ARTISTS NOW CAN BE USED TO RELEASE FILM PICKUPS OR FILMS FINANCED BY THIRD PARTIES WHICH COULD INCLUDE CAROLCO PICTURES INC UA STILL WOULD PRODUCE SOME OF ITS OWN FILMS HOWEVER SOME PEOPLE SAY THAT A SALE OF THE STUDIO ISN'T THE ONLY OPTION FOR THE BANK WITH THE NEWLY SCRUBBED BALANCE SHEET A JOINT VENTURE OR EVEN A PUBLIC OFFERING ISN'T OUT OF THE QUESTION BUT PART OF MR OVITZ'S GOAL WAS TO AVOID SELLING ANY OF MGM'S OR UA'S FILM LIBRARIES BECAUSE HE REASONS THAT NEW DIGITAL TECHNOLOGY WILL MAKE SUCH ASSETS ATTRACTIVE TO FUTURE POTENTIAL BUYERS POSSIBLY INCLUDING CABLE OR TELEPHONE COMPANIES MR LADD WAS UNAVAILABLE BUT HIS ATTORNEY ALLEN SUSMAN RELEASED A STATEMENT SAYING THE TERMINATION WAS ADMITTEDLY MADE WITHOUT CAUSE AND THAT MORE WOULD BE SAID IN THE FUTURE IN AN OPEN LETTER TWO TOP BANK OFFICIALS SOUGHT TO ASSURE MGM EMPLOYEES THAT ALTHOUGH A SALE OF THE STUDIO BY 1997 IS REQUIRED BY US BANKING LAWS THE BANK IS FIRST COMMITTED TO FULLY REBUILDING MGM IN HIS OWN LETTER MR MANCUSO SAID THE BANK'S ACTIONS DEMONSTRATE BEYOND DOUBT THE COMMITMENT OF OUR SHAREHOLDER TO THIS GREAT INSTITUTION BOTH MR MANCUSO AND THE OFFICIALS CALLED ATTENTION TO RECENT RUMORS ABOUT A SALE OF MGM WHICH THE BANK SAID WERE WILD AND TOTALLY UNFOUNDED SPECULATION PERSISTS ABOUT A PLAN FOR THE SALE OF MGM TO CARGILL INC THE CLOSELY HELD COMMODITIES AND FINANCIAL SERVICES GIANT BASED IN MINNEAPOLIS THROUGH DIRECT NEGOTIATIONS WITH THE FRENCH GOVERNMENT THE REPORTS OF SUCH A PLAN HAVE BEEN DISMISSED BY PEOPLE CLOSE TO MR OVITZ BUT INDIVIDUALS CLOSE TO MGM NOW SAY THEY CAN'T REJECT THE SPECULATION OUTRIGHT LAST WEEK A CARGILL SPOKESMAN DENIED THE REPORT 9307260053 930726 INTERNATIONAL CHAOS IN RUSSIA MOUNTS YELTSIN POLICIES ASSAILED CENTRAL BANK INVALIDATES PRE1993 RUBLE BILLS CAUSING MUCH TURMOIL BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE SIGNS OF STABILITY IN RUSSIA'S POLITICAL AND ECONOMIC LIFE THAT HAD APPEARED EARLIER THIS YEAR HAVE DISAPPEARED PRACTICALLY OVERNIGHT PRESIDENT BORIS YELTSIN THIS WEEKEND CUT SHORT HIS VACATION TO RUSH BACK TO MOSCOW AFTER A BARRAGE OF ATTACKS ON HIS REFORMS AND HIS STAFF BY A COCKY PARLIAMENT AND IN A SURPRISE MOVE AIMED LARGELY AT BULLYING NEIGHBORING EXSOVIET REPUBLICS INTO FOLLOWING RUSSIAN MONETARY POLICY THE CENTRAL BANK ANNOUNCED AN IMMEDIATE SWEEPING MONETARY REFORM MR YELTSIN'S DECISION TO HURRY HOME UNDERSCORED HOW OUTOFHAND THE PARLIAMENT HAS BECOME SINCE THE PRESIDENT LEFT TOWN PASSING RESOLUTIONS THAT AMONG OTHER THINGS UNDERMINE PRIVATIZATION COMPLICATE FOREIGNBANK ACTIVITY AND CURTAIL FREEDOM FOR FOREIGN RELIGIOUS GROUPS TO TOP IT OFF THE LEGISLATURE MADE A SELFSERVING CHANGE TO ITS OWN PROTOCOL DECIDING THAT A BARE MAJORITY ATTENDANCE IS SUFFICIENT FOR A QUORUM THE CENTRAL BANK'S DECISION TO INVALIDATE ALL RUBLE BILLS ISSUED BEFORE 1993 THREW BUSINESS INTO CONFUSION AND MANY PENSIONERS INTO SHOCK LONG LINES IMMEDIATELY FORMED AT STATE STORES AND SAVINGS BANKS IN MOSCOW AS RUBLEHOLDERS STRUGGLED TO UNLOAD THE CURRENCY BEFORE TODAY WHEN IT BECOMES INVALID MANY PRIVATELY OWNED KIOSKS SHUT DOWN WHILE MANY OTHERS POSTED SIGNS SAYING THEY WOULD REFUSE TO ACCEPT OLD RUBLES THE DOLLAR WHICH HAD FALLEN STEADILY IN DAILY TRADING IN MOSCOW TO CLOSE AT 1004 RUBLES FRIDAY SHOT UP SATURDAY TO 1150 RUBLES THE MOVE WILL KILL WHATEVER TRUST THERE WAS IN THE RUBLE SAID YELTSIN ADVISER AND LIBERAL PARLIAMENT MEMBER PYOTR FILIPOV ACCORDING TO THE INDEPENDENT NEWS AGENCY INTERFAX UNDER THE MONETARY REFORM RUSSIAN CITIZENS OR RUSSIAN LEGAL RESIDENTS HAVE UNTIL AUG 7 TO TURN IN FOR NEW CURRENCY AS MUCH AS 35000 RUBLES EACH THE REMAINDER OF THEIR CASH WILL BE PUT INTO SPECIAL SAVINGS ACCOUNTS FOR SIX MONTHS THE CENTRAL BANK ESTIMATES THAT THE OLD RUBLES IN CIRCULATION TOTAL 250 BILLION RUBLES OR 12 OF THE TOTAL MONEY SUPPLY OF 2083 TRILLION RUBLES THE CENTRAL BANK SAYS ITS MAIN GOAL IS TO RID THE ECONOMY OF THE VARIOUS SOVIET AND RUSSIAN BANK NOTES NOW CIRCULATING THE ACTION WHICH IS BEING TAKEN IS IN NO WAY INFRINGING THE LEGAL INTERESTS OF CITIZENS THE BANK SAID IN A STATEMENT BUT THE MONEY PLACED FORCIBLY IN SAVINGS ACCOUNTS IS LIKELY TO LOSE MUCH OF ITS VALUE DUE TO INFLATION WHICH IS NOW AT ABOUT 17 MONTHLY DOWN FROM 28 MONTHLY IN JANUARY MEANWHILE COMPANIES AND ORGANIZATIONS ARE BEING GIVEN JUST ONE DAY TO DEPOSIT THEIR CASH INTO BANK ACCOUNTS A SURE WAY TO SHRINK THE AMOUNT OF MONEY IN CIRCULATION THE REFORM ALSO LIMITS FOREIGNERS TO SWAPPING NO MORE THAN 15000 RUBLES AND FOR ONE DAY ONLY ON MONDAY THE MOVE HITS CITIZENS AND BUSINESSES OF THE OTHER FORMER SOVIET REPUBLICS HARDEST OF ALL AND THAT'S THE MAIN GOAL OF THE REFORM TO GET THE RUBLE BACK UNDER RUSSIAN CONTROL MOST OF THESE NEIGHBORING STATES USE THE RUBLE EXCLUSIVELY OR AS A PARALLEL CURRENCY WITH THEIR OWN COUPONS OR INTERIM MONEY AN ESTIMATED 20 OF ALL RUBLES ARE HELD OUTSIDE RUSSIA ACCORDING TO CENTRAL BANK OFFICIALS THE REFORM MARKS A SHARP INCREASE OF RECENT PRESSURE ON OTHER REPUBLICS TO FALL IN LINE WITH RUSSIAN MONETARY POLICY THE DESTABILIZING MOVE COMES JUST WHEN MR YELTSIN IS FACING OTHER THREATS FROM PARLIAMENT DURING THE TWO WEEKS MR YELTSIN HAS BEEN OUT OF TOWN THE PARLIAMENT HAS BEEN ON A LAWMAKING SPREE LATE LAST WEEK LEGISLATORS CAPPED THEIR SESSION BEFORE BREAKING FOR SUMMER HOLIDAYS WITH A SERIES OF NEW RESOLUTIONS INCLUDING NEW RESTRICTIONS ON FOREIGN BANKS AND A FLABBY BUDGET THAT CONTRADICTS ATTEMPTS AT TIGHT FISCAL CONTROL IN ITS NEW RESOLUTION ON FOREIGN BANKS THE PARLIAMENT WAS CLEARLY CURRYING FAVOR WITH RUSSIAN COMMERCIAL BANKS WHILE ALSO EXPRESSING ITS OWN XENOPHOBIA THE NEW RULING WILL PUT ACTIVE FOREIGN BANKS UP FOR YET ANOTHER BUREAUCRATIC REVIEW LICENSED BANKS MUST REREGISTER UNDER A NEW BANKING LAW BY DEC 31 OR RISK LOSING THEIR LICENSES THE MOVE DREW WATCHFUL CONCERN FROM FOREIGN BANKERS AND VOCAL OPPOSITION FROM SOME GOVERNMENT OFFICIALS THIS WILL PUSH BUSINESSMEN AWAY SAID FIRST DEPUTY FINANCE MINISTER SERGEI DUBININ AT LEAST AS RISKY ARE THE PARLIAMENT'S BUDGET PLANS WHICH ALLOW A DEFICIT OF MORE THAN 22 TRILLION RUBLES IN 1993 OR 25 OF THE PROJECTED GROSS NATIONAL PRODUCT THE GOVERNMENT HAD PROPOSED A DEFICIT OF 12 TRILLION RUBLES MR DUBININ SAID HIS MINISTRY WOULD ASK FOR A PRESIDENTIAL VETO OF THE PARLIAMENTARY BUDGET PLANS BUT A VETO CAN BE OVERTURNED BY A TWOTHIRDS PARLIAMENTARY VOTE IT ALSO ISN'T ENTIRELY CLEAR WHAT MR YELTSIN CAN DO TO STOP OTHER NEW RESOLUTIONS FROM TAKING EFFECT HE HAS BEEN CONCENTRATING ON A NEW CONSTITUTION THAT HE HOPES WILL MEAN THE END OF THE CURRENT PARLIAMENT AND BRING ELECTIONS IN THE FALL BUT THE CONSTITUTION'S SUCCESS IS FAR FROM CERTAIN AND THE PARLIAMENT'S NEW RESOLUTIONS CLEARLY UP THE ANTE IN THE POWER STRUGGLE 9307260052 930726 SMITHKLINE BEECHAM AGREES TO PAY CASH COUPONS TO PLAINTIFFS PHILADELPHIA AP SMITHKLINE BEECHAM AGREED TO PAY 18 MILLION IN CASH AND 19 MILLION IN COUPONS OFFERING FREE HEALTHCARE PRODUCTS TO PEOPLE WHO BOUGHT DENTURE ADHESIVE CONTAINING TRACES OF THE CHEMICAL SOLVENT BENZENE THE AGREEMENT WAS DESCRIBED BY A PLAINTIFFS' ATTORNEY THE COMPANY DIDN'T ADMIT FAULT IN THE SETTLEMENT WHICH IS SUBJECT TO FINAL COURT APPROVAL IN SEPTEMBER SMITHKLINE VOLUNTARILY RECALLED PORTIONS OF ORAFIX SPECIAL AND BRACE IN LATE 1990 AFTER THE BENZENE TURNED UP SAID JAY COHEN THE ATTORNEY REPRESENTING MEYER DUBOFF AND THOUSANDS OF OTHER PLAINTIFFS BENZENE IS CLASSIFIED AS A POTENTIAL CARCINOGEN BY THE FOOD AND DRUG ADMINISTRATION THE CHEMICAL WAS AN INADVERTANT BYPRODUCT OF THE PROCESS USED TO MAKE THE ADHESIVE MR COHEN SAID HE SAID THE SUIT WAS BROUGHT AS FALSEADVERTISING LITIGATION BECAUSE THE PACKAGES ADVERTISED THE ENCLOSED PRODUCTS AS SAFE THE PRODUCTS IN QUESTION WERE SOLD BETWEEN JAN 2 1985 AND JUNE 2 1991 THE COMPANY SAID ORAFIX SPECIAL STAYED OFF THE MARKET FROM DECEMBER 1990 UNTIL THE COMPANY INTRODUCED A NEW FORMULA IN APRIL 1991 BRACE WAS PULLED FROM THE MARKET PERMANENTLY SMITHKLINE SPOKESMAN JEREMY HEYMSFELD SAID TESTS OF ORAFIX SPECIAL IN LATE 1990 SHOWED IT CONTAINED 191 PARTS OF BENZENE PER MILLION THE FDA SAID BRACE CONTAINED 190 PPM THE FDA SAID IT CONSIDERS BENZENE EXPOSURE ABOVE 5 PARTS PER BILLION TO HAVE POSSIBLE HARMFUL HEALTH EFFECTS 9307260051 930726 BUSINESS BRIEF CAMPBELL SOUP CO COMPANY TO TAKE A CHARGE DUE TO ACCOUNTING CHANGES CAMPBELL SOUP CO SAID IT WILL TAKE A ONETIME CHARGE TO EARNINGS OF 247 MILLION TO 260 MILLION OR BETWEEN 98 CENTS AND 103 A SHARE FOR THE YEAR ENDING SUNDAY AS A RESULT OF ADOPTING THREE NEW ACCOUNTING STANDARDS CAMPBELL'S SHARES FELL 2625 OR 67 TO 36875 AFTER GOLDMAN SACHS & CO FOOD ANALYST NOMI GHEZ CUT HER ESTIMATES FOR CAMPBELL AND TOOK THE FOOD COMPANY'S STOCK OFF GOLDMAN'S RECOMMENDED LIST MS GHEZ CUT HER ESTIMATES BECAUSE OF THE EARNINGS IMPACT OF THE ACCOUNTING CHANGES AND OUT OF CONCERN OVER SLOWING INDUSTRY TRENDS THE CAMDEN NJ COMPANY ALSO SAID IT WILL TAKE AN INCREMENTAL ANNUAL CHARGE OF 18 MILLION OR SEVEN CENTS A SHARE FOR THE ACCOUNTING CHANGES FOR THE YEAR ENDED AUG 2 1992 CAMPBELL EARNED 4905 MILLION OR 195 A SHARE 9307260050 930726 BUSINESS BRIEF BROOKE GROUP LTD COMPANY MAY SPIN OFF SKYBOX INTERNATIONAL UNIT BROOKE GROUP LTD SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE POSSIBLE SPINOFF OF ITS SKYBOX INTERNATIONAL INC UNIT TO BROOKE GROUP SHAREHOLDERS SKYBOX IS A DISTRIBUTOR OF SPORTS AND ENTERTAINMENT TRADING CARDS THE COMPANY SAID IN NEW YORK THAT THE FILING IS PART OF ITS CONTINUING EVALUATION OF METHODS TO ADDRESS ITS LIABILITY TO THE HOLDERS OF ITS CONTINGENT VALUE RIGHTS WHICH MATURE NOV 15 THE RIGHTS ISSUED AS PART OF A MERGER SEVERAL YEARS AGO ESSENTIALLY ASSURED HOLDERS THEY WOULD BE WORTH AT LEAST 1825 A SHARE NEXT NOVEMBER BROOKE GROUP WHICH OWNS TOBACCO COMPANY LIGGETT GROUP SAID IT HASN'T FIRMLY DECIDED TO PROCEED WITH THE SKYBOX SPINOFF AND IS STUDYING POSSIBLE ALTERNATIVE TRANSACTIONS INVOLVING SKYBOX INCLUDING AN INITIAL PUBLIC OFFERING OR SALE OF A MINORITY INTEREST TO A THIRD PARTY 9307260049 930726 BUSINESS BRIEF STUDENT LOAN CORP NET INCOME INCREASED 44 DURING THE SECOND QUARTER STUDENT LOAN CORP PITTSFORD NY SAID NET INCOME JUMPED 44 IN THE SECOND QUARTER REFLECTING AN INCREASE IN THE STUDENTLOAN PORTFOLIO AND LOW FUNDING COSTS THE ORIGINATOR AND HOLDER OF INSURED STUDENT LOANS SAID NET INCOME WAS 159 MILLION OR 80 CENTS A SHARE COMPARED WITH 111 MILLION OR 55 CENTS A SHARE THE YEAR BEFORE CITIBANK A SUBSIDIARY OF CITICORP HOLDS AN 80 STAKE IN STUDENT LOAN CORP CORE EARNINGS WHICH EXCLUDE THE BENEFIT OF FLOOR OR FIXED MINIMUM RATES ON CERTAIN LOANS ROSE 17 TO 97 MILLION OR 48 CENTS A SHARE FLOOR EARNINGS ACCOUNTED FOR 63 MILLION OR 32 CENTS A SHARE UP FROM 28 MILLION OR 14 CENTS A SHARE THE IMPACT OF FIXED MINIMUM RATES ON STUDENT LOAN CORP'S INTEREST EARNINGS WILL EASE BECAUSE THE MAJORITY OF LOANS DISBURSED AFTER OCTOBER 1992 HAVE VARIABLE INTEREST RATES DUE TO REGULATORY CHANGES 9307260048 930726 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE AUG 6 2003 PRICED AT PAR TO YIELD 639 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE AUG 4 2003 PRICED AT PAR TO YIELD 651 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 61 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC UNC INC 100 MILLION OF SENIOR NOTES DUE JULY 15 2003 PRICED AS 9125S AT PAR ACCORDING TO MCM CORPORATEWATCH THE SENIOR NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP SHANGHAI PETROCHEMICAL CO INITIAL PUBLIC OFFERING OF 168 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 2039 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO EACH DEPOSITARY SHARE REPRESENTS 100 CLASS H SHARES IN THE COMPANY MASSACHUSETTS HEALTH & EDUCATION TAXEXEMPT TRUST INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO MUNICIPAL PARTNERS FUND II INC 55 MILLION COMMON SHARES OFFERED AT 15 APIECE THROUGH AN UNDERWRITING SYNDICATE LED BY OPPENHEIMER & CO AND SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1574 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1575 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 67 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993158 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1993159 IS BACKED BY THE PRINCIPALONLY PORTION OF STRIPPED MORTGAGE BACKED SECURITIES 231 WHICH IN TURN IS BACKED BY THE AGENCY'S 75 30YEAR MORTGAGEBACKED SECURITIES BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG GERMANY 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE AUG 19 2003 AT ISSUE AND REOFFER PRICE 9955 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST FLOATS AT 025 POINT BELOW LONDON INTERBANK OFFERED RATE FOR DOLLARS WITH MINIMUM COUPON 525 AND MAXIMUM 825 FEES 05 POINT GOLDMAN SACHS & CO US 200 MILLION OF 5 EUROBONDS DUE AUG 23 1996 AT ISSUE PRICE 10061 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9946 TO YIELD 52 A MARGIN OF 635 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1375 POINTS NIPPON OIL FINANCE NETHERLANDS BV JAPANESE PARENT 45 BILLION YEN OF 405 EUROBONDS DUE NOV 1 1996 AT ISSUE AND REOFFER PRICE 10025 VIA SAKURA FINANCE INTERNATIONAL LTD BONDS YIELD 396 KEEPWELL AGREEMENT WITH NIPPON OIL CO FEES 035 POINT PDV AMERICA INC VENEZUELAN PARENT 1 BILLION OF GLOBAL BONDS IN THREE TRANCHES VIA SALOMON BROTHERS INC FIRST TRANCHE FOR 250 MILLION OF 725 NOTES DUE AUG 1 1998 PRICED AT 99589 TO YIELD 735 A SPREAD OF 210 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 0125 POINT SECOND TRANCHE FOR 250 MILLION OF 775 NOTES DUE AUG 1 2000 PRICED AT PAR TO YIELD 775 A SPREAD OF 218 BASIS POINTS ABOVE COMPARABLE TREASURY NOTE FEES 01375 POINT THIRD TRANCHE FOR 500 MILLION OF 7875 NOTES DUE AUG 1 2003 PRICED AT 99186 TO YIELD 7995 A MARGIN OF 210 BASIS POINTS ABOVE COMPARABLE TREASURY NOTE FEES 015 POINT ALL BONDS GUARANTEED BY PROPERNYN BV AND PETROLEOS DE VENEZUELA SA INTEREST PAYABLE SEMIANNUALLY PETROLEOS MEXICANOS MEXICO 400 MILLION AUSTRIAN SCHILLINGS OF 8375 EUROBONDS DUE MAY 27 1998 PRICED AT 102 VIA CREDITANSTALTBANKVEREIN FEES 18 POINTS SUDWEST LB CAPITAL MARKETS FINANCE PLC GERMAN PARENT 250 MILLION MARKS OF 675 EUROBONDS DUE AUG 26 2003 AT ISSUE PRICE 10255 VIA MERRILL LYNCH BANK AG BONDS YIELD 674 AT 10005 BREAKEVEN PRICE FOR COMANAGERS A SPREAD OF 23 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR SUDWESTDEUTSCHE LANDESBANK GIROZENTRALE FEES 25 POINTS 9307260047 930726 BUSINESS BRIEF US SHOE CORP COMPANY SEES POOR' 1993 IS POSITIVE' FOR LONG TERM US SHOE CORP PROJECTED OVERALL POOR RESULTS FOR 1993 WITH A 25 MILLION PRETAX LOSS AT SOME OPERATIONS IT PLANS TO SELL CONTRIBUTING TO A SUBSTANTIAL SECONDQUARTER LOSS THE 25 MILLION LOSS AT ITS CAREN CHARLES/PAPPAGALLO AND UPS 'N DOWNS/CAPEZIO OPERATIONS INCLUDES A PREVIOUSLY ANNOUNCED CHARGE OF 106 MILLION OR 14 CENTS A SHARE TO DISPOSE OF THE CAREN CHARLES AND UPS 'N DOWNS DIVISIONS US SHOE HAS SAID IT WILL SELL THE ASSETS TO AIJJ ENTERPRISES CO NEW YORK HOWEVER THE CINCINNATI COMPANY SAID IT IS VERY POSITIVE ABOUT LONGTERM PROSPECTS IT FORECAST STRONG QUARTERTOQUARTER COMPARISONS IN ITS OPTICAL RETAILING BUSINESS US SHOE SAID IT ISN'T ACTIVELY CONSIDERING A SALE OF ITS FOOTWEAR OPERATIONS OR ITS LENSCRAFTERS OPTICAL RETAILING BUSINESS 9307260046 930726 ENVIRONMENT BY DAVE KANSAS THE PERILS OF LEAD MAY SINK SOME BASIC FISHING EQUIPMENT NOBODY MAKES A LURE TO CATCH LOONS BUT ANGLERS MAY INADVERTENTLY BE KILLING THE DIVING BIRDS WITH LEAD SINKERS SOMETIMES THE SINKERS FALL FROM THE LINE AND BIRDS APPARENTLY INGEST THE SMALL PIECES OF LEAD POISONING THEMSELVES WORRIED ABOUT THE IMPACT OF THE SINKERS ON BIRDS THE ENVIRONMENTAL PROTECTION AGENCY IS CONSIDERING A BAN ON LEAD FISHING SINKERS CONCERNS ABOUT LEAD USE HAVE ALREADY HIT OTHER AREAS OF THE SPORTING LIFE SINCE 1991 LEAD SHOT HAS BEEN BANNED FROM USE IN WETLANDS IN BRITAIN LEAD SINKERS HAVE BEEN BANNED SINCE 1987 AFTER THE LEADLINKED DEATHS OF SWANS IF A BAN TAKES EFFECT IT'S LIKELY THAT SINKERS WILL DOUBLE OR TRIPLE IN PRICE THOUGH THEY'LL STILL BE CHEAP SOME TACKLE MAKERS WONDER IF A CHANGEOVER FROM LEAD IS NECESSARY IT'S ONE THING TO FIND 40 DEAD LOONS FROM LEAD POISONING BUT IS IT AFFECTING THEIR POPULATION ASKS A SPOKESMAN FOR THE AMERICAN FISHING TACKLE MANUFACTURERS ASSOCIATION I DON'T THINK THAT QUESTION HAS BEEN ANSWERED THE ENVIRONMENTAL DEFENSE FUND SAYS AT LEAST SIX STUDIES HAVE SHOWN A LINK BETWEEN LEAD SINKERS AND THE DEATH OF BIRDS INCLUDING LOONS SWANS AND HERONS THE THREE LARGEST SINKER MAKERS ARE DEVELOPING ALTERNATIVES TO REPLACE THE FIVE MILLION TO SIX MILLION POUNDS OF LEAD SINKERS SOLD A YEAR THE BIGGEST WATER GREMLIN WHITE BEAR LAKE MINN FAVORS A RESIN AND IRONPOWDER COMBINATION OTHER OPTIONS INCLUDE BISMUTH OR TIN IT'S REALLY A NUISANCE BECAUSE IT'S GOING TO COST A LOT OF MONEY TO CHANGE OVER SAYS DOUG JOHNSON WATER GREMLIN'S PRESIDENT BUT A MORE SIGNIFICANT NUISANCE WOULD BE JUST CERTAIN AREAS BANNING THEM THEN WE'D NEED TWO PRODUCTS THE EPA WILL ISSUE A DECISION IN JANUARY MEANWHILE THE EDF PRESSES STATES AND THE INTERIOR DEPARTMENT WHICH MANAGES NATIONAL PARKS TO ENACT INDEPENDENT BANS TRADING IN POLLUTION ALLOWANCES FIZZLES BACK IN MARCH UTILITIES BROKERAGE FIRMS AND ENVIRONMENTALISTS SPENT 21 MILLION AT THE FIRSTEVER AUCTION OF POLLUTION ALLOWANCES THE EPA HOPED THE PUBLIC AUCTION RUN BY THE CHICAGO BOARD OF TRADE WOULD SPUR TRADING IN THE ALLOWANCES CREATING AN ACTIVE MARKET FOR THE RIGHT TO POLLUTE THE MARKETBASED PLAN IS PART OF A FEDERAL PROGRAM AIMED AT CUTTING SULFURDIOXIDE EMISSIONS IN HALF BY THE YEAR 2000 BUT THE MARKET REMAINS MOSTLY DORMANT THE CBOT HAS POSTPONED QUARTERLY AUCTIONS CITING PROBLEMS WITH EPA COMPUTER PROGRAMS DESIGNED TO TRACK THE ALLOWANCES MOREOVER THE CBOT'S PLAN OF CREATING OPTIONS AND FUTURES MARKETS HAS YET TO REACH FRUITION WE'RE STILL WAITING FOR THE CASH MARKET TO TAKE HOLD SAYS A CBOT SPOKESMAN THE EPA'S DIRECTSALE PLAN WHICH OFFERS ALLOWANCES AT 1600 EACH HAS YET TO FIND A BUYER WE'RE A LITTLE SURPRISED AT HOW SLOW THINGS HAVE BEEN GOING SAYS FRANK LACEY A PARTNER WITH TERRA GROUP A FIRM THAT TRADES POLLUTION ALLOWANCES UTILITIES ALSO FRET THAT THE CHEAPNESS OF THE ALLOWANCES AS LOW AS 175 ON THE OPEN MARKET SOME TRADERS SAY WILL DISCOURAGE SOME BOLDER PLANS SOME UTILITIES HAVE PLANNED LARGE INVESTMENTS TO CLEAN UP WITH THE HOPE OF RECOUPING SOME OF THAT EXPENDITURE THROUGH SELLING PERMITS SAYS ONE UTILITY EXECUTIVE THAT WON'T BE SO EASY NOW A UTILITY CAN BUILD UP UNUSED ALLOWANCES FOR SALE BY KEEPING EMISSIONS BELOW TARGET LEVELS IMPROVING PERFORMANCE HOWEVER IS EXPENSIVE IF PERMITS REMAIN CHEAP UTILITIES MAY BE MORE LEERY OF LARGE INVESTMENTS TO BUILD UP A BANK OF ALLOWANCES STILL SPONSORS OF THE MARKETBASED PLAN SAY FUSSING OVER TRADING ACTIVITY MISSES THE POINT SOME PEOPLE THINK LESS EXPENSIVE ALLOWANCES OR SLOW TRADING MEANS THAT WE WON'T GET THE INTENDED REDUCTION IN EMISSIONS SAYS JOE GOFFMAN AN EDF ATTORNEY BUT THAT'S JUST A FALLACY THERE'S A FINITE NUMBER OF ALLOWANCES OUT THERE SO IT'S REALLY A ZEROSUM GAME VARIOUS COMPANIES ARE GRAPPLING WITH MEASURING ENVIRONMENTAL PERFORMANCE TRANSLATING PERFORMANCE INTO TERMS THAT LAY PEOPLE CAN COMPREHEND IS GROWING INCREASINGLY IMPORTANT AS CONSUMERS BECOME MORE CONCERNED ABOUT BEING GREEN NIAGARA MOHAWK POWER SYRACUSE NY HAS BEEN DEVELOPING AN INDEX THAT WILL MEASURE UTILITIES' PERFORMANCE IN THREE CATEGORIES WASTE AND EMISSIONS ENVIRONMENTAL COMPLIANCE AND ENVIRONMENTAL ENHANCEMENTS IF YOU CAN'T DEVELOP SOME KIND OF MEASURE THE PLANS YOU HAVE ARE WISHFUL THINKING SAYS THOMAS R FAIR VICE PRESIDENT ENVIRONMENTAL AFFAIRS THE ELECTRIC UTILITY ADDS UP POINTS FOR ACTIONS SUCH AS FIXING BOAT LAUNCHES 07 POINT INVESTING IN WINDTURBINE TECHNOLOGY 72 POINTS AND IMPROVING FISHERY HABITATS 46 POINTS IN 1992 IT SCORED 298 POINTS MR FAIR SAYS AND NEW EFFORTS WILL RAISE THAT SCORE TO 671 BY 1995 BUT NUMBERS CAN OVERSIMPLIFY RESULTS DOW PLASTICS A UNIT OF DOW CHEMICAL MIDLAND MICH PURSUES LIFECYCLE ANALYSIS WHICH CREATES AN ENVIRONMENTAL IMPACT PROFILE RATHER THAN A SCORE DETERMINING HOW TO VALUE CERTAIN ENVIRONMENTAL ACTIONS GETS INTO SOCIAL VALUES SAYS SCOTT NOESEN DOW PLASTICS' PROJECT MANAGER FOR ENVIRONMENTAL PERFORMANCE IT'S NOT OBJECTIVE ELSEWHERE THE GLOBAL ENVIRONMENTAL MANAGEMENT INITIATIVE IN WASHINGTON INVOLVES MORE THAN 20 COMPANIES TRYING TO DEVELOP BETTER INTERNAL BENCHMARKS DRINK IT WEAR IT SIGNS & SYMBOLS CATALOG CO BRUNSWICK MAINE PRODUCES A SHIRT THAT CONTAINS AT LEAST 50 RECYCLED POLYETHYLENE TEREPHTHALATE A PLASTIC USED IN SODA BOTTLES DON'T DRINK IT ALAMO RENT A CAR'S RENTAL OFFICE IN JACKSON HOLE WYO RECYCLES ITS CARWASH WATER A CLEANING SYSTEM ALLOWS THE COMPANY TO REUSE THE WATER AFTER EACH WASH 9307260045 930726 BUSINESS BRIEF STAPLES INC FISCAL SECONDPERIOD CHARGE OF 48 MILLION IS EXPECTED STAPLES INC SAID IT PLANS TO REVISE ITS COMPUTERSELLING STRATEGY RESULTING IN A ONETIME CHARGE OF 48 MILLION OR 20 CENTS A SHARE IN THE SECOND QUARTER ENDED JULY 31 1993 IN THE 1992 SECOND QUARTER THE FRAMINGHAM MASS OFFICE SUPPLY SUPERSTORE COMPANY HAD A LOSS OF 886000 OR FIVE CENTS A SHARE INCLUDING MERGER COSTS OF 12 MILLION OR SIX CENTS A SHARE THE COMPANY ALSO SAID IT EXPECTS TO RECORD A ONETIME GAIN OF ABOUT 54 MILLION OR 23 CENTS A SHARE FOR THE THIRD QUARTER ON THE SALE OF ITS INVESTMENT IN EASTMAN OFFICE PRODUCTS THE TRANSACTION IS EXPECTED TO CLOSE IN THE THIRD QUARTER THE COMPANY SAID IN THE 1992 THIRD QUARTER STAPLES POSTED EARNINGS OF 52 MILLION OR 23 CENTS A SHARE 9307260044 930726 TECHNOLOGY HATCH URGES FTC TO GIVE MICROSOFT CASE TO JUSTICE WASHINGTON A SENIOR REPUBLICAN SENATOR ADDED HIS VOICE TO THE CALL FOR THE DEADLOCKED FEDERAL TRADE COMMISSION TO TURN OVER ITS ANTITRUST PROBE OF MICROSOFT CORP TO THE JUSTICE DEPARTMENT IN A LETTER DATED JULY 21 SEN ORRIN HATCH OF UTAH URGED FTC CHAIRWOMAN JANET STEIGER TO REFER THE MICROSOFT INQUIRY TO THE JUSTICE DEPARTMENT IN HOPES OF SATISFYING MANY LINGERING QUESTIONS AS TO MICROSOFT'S CONDUCT THE FTC HAS TWICE FAILED TO REACH A CONCLUSION ON ALLEGATIONS THAT MICROSOFT UNFAIRLY USES ITS DOMINANT MARKET POWER AGAINST COMPETITORS THE COMMISSION MEMBERS SPLIT 22 LAST WEEK ON WHETHER TO ACCEPT STAFF RECOMMENDATIONS THAT IT TAKE ACTION AGAINST MICROSOFT THE TIE VOTE MEANT THAT THE COMPANY MAY CONTINUE OPERATING AS IT HAS SEN HATCH ACTED AT LEAST IN PART ON BEHALF OF TWO OF MICROSOFT'S UTAHBASED COMPETITORS NOVELL INC AND WORDPERFECT CORP SEN HOWARD METZENBAUM D OHIO ALSO HAS URGED THE FTC TO GIVE THE CASE TO THE JUSTICE DEPARTMENT 9307260043 930726 BUSINESS BRIEF WELDOTRON CORP FIRM IS SUED BY SFM UNIT OVER PROXY DATA FILINGS WELDOTRON CORP A PACKAGING MACHINERY MAKER SAID IT IS BEING SUED BY MTD SERVICE CORP A SFM CORP UNIT FOR CERTAIN ALLEGED DEFECTS IN THE COMPANY'S PROXY STATEMENT AND IN SCHEDULE 13D FILINGS BY CERTAIN OFFICERS THE PISCATAWAY NJ COMPANY DECLINED TO ELABORATE ON THE COMPLAINT OFFICIALS OF SFM A NEW YORK MAKER OF ELECTRIC MOTORS AND MACHINE TOOLS COULDN'T BE REACHED FOR COMMENT THE SUIT SEEKS A DELAY OF WELDOTRON'S AUG 5 ANNUAL SHAREHOLDERS MEETING THE APPOINTMENT OF A RECEIVER FOR THE COMPANY AND OTHER INJUNCTIVE RELIEF WELDOTRON SAID IT INTENDS TO VIGOROUSLY OPPOSE THE SUIT WHICH IT DESCRIBED AS WITHOUT MERIT IT SAID THAT IT REJECTED AN SFM OFFER EARLIER THIS YEAR FOR A 19 TO 20 STAKE CONDITIONED ON SFM REPRESENTATIVES' MAKING UP A MAJORITY OF WELDOTRON'S BOARD SFM HAS BEEN CRITICAL OF THE COMPANY'S PERFORMANCE AND MANAGEMENT 9307260042 930726 WHAT'S NEWS WORLDWIDE RUSSIAN OFFICIALS INVALIDATED ALL RUBLE BILLS ISSUED BEFORE 1993 THE CENTRAL BANK'S DECISION TO INVALIDATE BILLIONS OF OLD BANK NOTES THREW BUSINESS INTO CONFUSION AND MANY PENSIONERS INTO SHOCK LONG LINES IMMEDIATELY FORMED AT STATE STORES AND SAVINGS BANKS IN MOSCOW AS HOLDERS OF RUBLES STRUGGLED TO UNLOAD THE CURRENCY BEFORE TODAY WHEN IT BECOMES INVALID THE CENTRAL BANK SAID ITS ACTION IS AIMED AT RIDDING THE ECONOMY OF THE VARIOUS SOVIET AND RUSSIAN BANK NOTES NOW CIRCULATING PRESIDENT YELTSIN CUT SHORT A VACATION TO RUSH BACK TO MOSCOW AFTER A BARRAGE OF ATTACKS IN PARLIAMENT ON HIS ECONOMIC REFORMS ISRAELI WARPLANES BATTERED GUERRILLA TARGETS IN LEBANON IN THE HEAVIEST ISRAELI ATTACK INSIDE LEBANON SINCE ITS 1982 INVASION PLANES AND HELICOPTERS POUNDED BOTH PROIRANIAN AND SYRIANBACKED PALESTINIAN REBEL STRONGHOLDS GUERRILLAS RETALIATED WITH ROCKET BARRAGES AT LEAST 18 PEOPLE DIED ON BOTH SIDES OF THE BORDER AFTER A DAY OF FIGHTING LEBANESE RESIDENTS DUG THROUGH RUBBLE IN TOWNS FROM SOUTHERN LEBANON TO NEAR BEIRUT WHILE MAYORS IN NORTHERN ISRAELI TOWNS WERE PLANNING EVACUATIONS IN WASHINGTON AND OTHER CAPITALS OFFICIALS DENOUNCED THE GROWING ARABISRAELI VIOLENCE WHICH HAS SERIOUSLY STRAINED THE MIDEAST PEACE PROCESS HOUSE SPEAKER FOLEY IS SEVERING ALL INVESTMENT TIES WITH A FORMER HIGH SCHOOL FRIEND AND BROKER WHO HAS HELPED THE WASHINGTON DEMOCRAT MAKE QUICK PROFITS FROM THE PURCHASE AND RESALE OF INITIAL PUBLIC OFFERINGS OF STOCKS OVER THE PAST DECADE ROSTENKOWSKI DENIED ANY WRONGDOING IN THE HOUSE POST OFFICE SCANDAL THE WAYS AND MEANS COMMITTEE CHAIRMAN A CHICAGO DEMOCRAT SAID SATURDAY I HAVE COMMITTED NO CRIME AND HAVE ENGAGED IN NO ILLEGAL OR UNETHICAL CONDUCT BOSNIAN SERBS SHELLED A UN MILITARY BASE IN SARAJEVO SHATTERING THE LATEST CEASEFIRE ACCORD IN BOSNIA A UN SPOKESMAN SAID THE ATTACK CONSISTED OF AT LEAST 68 ARTILLERY ROUNDS WHICH DESTROYED FOUR UN VEHICLES AND DAMAGED EIGHT OTHERS AT THE BASE NO CASUALTIES WERE REPORTED ANOTHER ITALIAN INDUSTRIALIST COMMITTED SUICIDE RAUL GARDINI A FORMER CHAIRMAN OF FERRUZZI AND MONTEDISON KILLED HIMSELF ON FRIDAY THREE DAYS AFTER THE SUICIDE OF GABRIELE CAGLIARI THE FORMER CHAIRMAN OF STATE ENERGY GIANT ENI BOTH MEN HAD BEEN TAINTED BY A NATIONWIDE CORRUPTION SCANDAL THE MISSISSIPPI RIVER BROKE THROUGH A SECTION OF THE SNY ISLAND LEVEE SOUTH OF QUINCY ILL FLOODING 44000 ACRES OF FARMLAND OTHER LEVEE BREAKS OCCURRED IN RANDOLPH COUNTY ILL AND IN PERRYVILLE MO SEVERAL CITIES ALONG THE MISSISSIPPI AND THE MISSOURI RIVERS WERE WITHOUT TAP WATER DUE TO FLOODING BRITAIN'S MAJOR WON PARLIAMENTARY APPROVAL OF THE MAASTRICHT TREATY ON EUROPEAN UNITY FRIDAY AFTER SUFFERING AN EMBARRASSING DEFEAT ON THE TREATY A DAY BEFORE BUT THE FACT THAT THE PRIME MINISTER HAD TO LINK THE PACT'S APPROVAL TO A VOTE OF CONFIDENCE IN THE GOVERNMENT UNDERSCORED HIS WEAKENED AUTHORITY A US FIGHTER JET FIRED ON A MISSILE BATTERY IN EASTERN IRAQ ONLY HOURS BEFORE UN INSPECTORS ARRIVED IN BAGHDAD TO SET UP MONITORING CAMERAS AT OTHER WEAPONS SITES THE AMERICAN JET FIRED A MISSILE AFTER IRAQI RADAR LOCKED ON THE PLANE ACCORDING TO THE DEFENSE DEPARTMENT US OFFICIALS SAID THE IRAQIS FIRED BACK BUT MISSED BLACK GUNMEN BURST INTO A WHITE CHURCH IN SOUTH AFRICA FIRING AUTOMATIC RIFLES AND THROWING HAND GRENADES TEN WHITES WERE KILLED AND AT LEAST 53 WOUNDED IN THE ATTACK IN CAPE TOWN POLICE SAID LIBERIA'S WARRING FACTIONS SIGNED A PEACE AGREEMENT IN BENIN CLEARING THE WAY FOR MULTIPARTY ELECTIONS TO BE SCHEDULED EARLY NEXT YEAR THE SIGNING CEREMONY FOLLOWED THREE DAYS OF NEGOTIATIONS THE CHINESE GOVERNMENT SCRAPPED DOZENS OF TAXES AND FEES THAT HAVE ANGERED PEASANTS THERE HAVE BEEN REPORTS THIS YEAR OF SEVERAL VIOLENT ANTIGOVERNMENT PROTESTS BY PEASANTS OVER SUCH FEES MIGUEL INDURAIN OF SPAIN WON HIS THIRD STRAIGHT VICTORY IN THE THREEWEEK TOUR DE FRANCE BICYCLE RACE 9307260041 930726 BUSINESS BRIEF MAGNA INTERNATIONAL INC ONTARIO AUTO PARTS CONCERN TO SUPPLY NEW BMW PLANT MAGNA INTERNATIONAL INC SAID IT REACHED AN AGREEMENT TO SUPPLY AUTO PARTS FOR BAYERISCHE MOTOREN WERKE AG'S AUTO ASSEMBLY PLANT BEING BUILT NEAR GREER SC MAGNA ALSO SAID IT WILL BUILD A PLANT IN NEARBY GREENVILLE SC TO SUPPLY BMW WITH PARTS ON A JUSTINTIME BASIS MAGNA AN AUTO PARTS CONCERN BASED IN MARKHAM ONTARIO WILL SUPPLY DOOR TRUNK AND HOOD ASSEMBLIES AND OTHER PARTS FOR A NEW BMW MODEL THAT IS SCHEDULED TO DEBUT IN SEPTEMBER 1995 BMW'S NEW MODEL DETAILS OF WHICH ARE BEING KEPT SECRET WILL ACCOUNT FOR BETWEEN 45 TO 60 OF THE PLANT'S CAPACITY OF ABOUT 90000 VEHICLES A YEAR A SPOKESMAN FOR MUNICHBASED BMW SAID FINANCIAL TERMS OF THE PACT WEREN'T DISCLOSED A MAGNA SPOKESMAN SAID THE COMPANY WILL ANNOUNCE LATER THE AMOUNT IT WILL INVEST IN THE NEW PLANT WHICH IS SCHEDULED TO BEGIN PRODUCTION IN JANUARY 1995 AND EMPLOY UP TO 300 WORKERS 9307260040 930726 BUSINESS BRIEF BURNS PHILP & CO AUSTRALIAN CONCERN PLANS TO SELL HARDWARE BUSINESS BURNS PHILP & CO OF AUSTRALIA ANNOUNCED PLANS TO SELL ITS HARDWARERETAILING BUSINESS IN THE NEXT 18 MONTHS TO RAISE AN EXPECTED 400 MILLION TO 600 MILLION AUSTRALIAN DOLLARS US270 MILLION TO US406 MILLION ANDREW TURNBULL MANAGING DIRECTOR OF BURNS PHILP SAID THE COMPANY WILL FOCUS ON ITS FOOD INGREDIENT BUSINESS BURNS PHILP PRODUCES BAKERS' YEAST VINEGAR AND SPICES IN 17 COUNTRIES THE HARDWARERETAILING BUSINESS INVOLVES 260 STORES IN AUSTRALIA AND NEW ZEALAND WITH ANNUAL SALES OF ABOUT A1 BILLION THIS BUSINESS LIKELY WILL BE SOLD THROUGH AN INITIAL PUBLIC OFFERING OF SHARES TO INVESTORS INCLUDING BURNS PHILP SHAREHOLDERS ALTHOUGH IT MIGHT BE SOLD TO A SINGLE BUYER IF A HIGH PRICE IS OFFERED COMPANY OFFICIALS SAID BURNS PHILP ALSO WILL CONSIDER SELLING ITS SHIPPING BUSINESS A SMALLER DIVISION THAT WAS IMPORTANT TO THE COMPANY BEFORE IT DIVERSIFIED INTO FOOD AND HARDWARE 9307260039 930726 WHAT'S NEWS BUSINESS AND FINANCE MGM NAMED FRANK MANCUSO CHAIRMAN AND TOOK OTHER STEPS TO BUFF UP THE TARNISHED STUDIO FOR FUTURE SALE THE FIRM'S PARENT FRENCH STATE BANK CREDIT LYONNAIS WILL PROVIDE MORE FINANCING AND ASSUME CERTAIN MGM DEBT OBLIGATIONS THE STUDIO ALSO CREATED A NEW PRODUCTION ARM UNDER THE FAMOUS UNITED ARTISTS NAME IBM'S GERSTNER APPEARS TO HAVE A TWOPRONGED STRATEGY FOR REVIVING THE AILING COMPUTER GIANT HE IS PUTTING THE BRAKES ON DECENTRALIZATION WHILE ALSO ENCOURAGING AN ENTREPRENEURIAL SPIRIT IBM WILL POST SECONDQUARTER RESULTS TOMORROW AND IS EXPECTED TO TAKE A CHARGE OF 2 BILLION OR MORE VW EXECUTIVES AND OFFICIALS OF THE GERMAN STATE OF LOWER SAXONY THE AUTO MAKER'S LARGEST HOLDER CONTINUED TO STAND BY THE FIRM'S EMBATTLED PRODUCTION CHIEF FORMER GM PURCHASING OFFICIAL LOPEZ ANALYSTS SAY VW'S FUTURE HINGES ON PURSUING LOPEZ'S COSTCUTTING PLANS WITH OR WITHOUT HIM MACHINETOOL ORDERS FELL 22 IN JUNE AS ORDERS FROM AUTO MAKERS SLOWED FOR A SECOND MONTH IN A ROW DESPITE THE DROP THE MONTH'S ORDERS WERE UP 46 FROM A YEAR EARLIER EXXON AND MOBIL POSTED SHARP INCREASES IN SECONDQUARTER NET INCOME BECAUSE OF RALLYING US NATURALGAS PRICES A REBOUND IN GASOLINE REFINING AND SEVERE COSTCUTTING OPEC MEMBERS' DISPUTES FORCED THE DELAY OF A MEETING TO DISCUSS SLUMPING OIL PRICES THE RIFTS ARE DIMINISHING OIL TRADERS' ESTIMATION OF THE CARTEL'S ABILITY TO PROP UP PRICES MARRIOTT SHAREHOLDERS APPROVED A PROPOSAL TO SEPARATE THE COMPANY INTO ONE REALESTATE CONCERN CONTAINING MOST OF MARRIOTT'S DEBT AND ONE HIGHGROWTH HOTEL MANAGEMENT FIRM CATERPILLAR POSTED SECONDPERIOD NET INCOME OF 67 MILLION AFTER A YEAREARLIER LOSS OFFERING EVIDENCE THAT THE CONSTRUCTIONEQUIPMENT MAKER'S NASCENT RECOVERY IS CONTINUING NAFTA SIDE ACCORDS CONCERNING ENVIRONMENTAL AND LABOR ISSUES COULD BE WRAPPED UP IN NEGOTIATIONS SET FOR THIS WEEK ACCORDING TO TRADE ANALYSTS THE DOLLAR AND THE POUND WILL COME OUT AHEAD WHATEVER THE OUTCOME OF THE LATEST EUROPEAN CURRENCY CRISIS MANY ANALYSTS SAY BOTH CURRENCIES BENEFITED FROM THEIR HAVEN STATUS IN TUMULTUOUS TRADING LATE LAST WEEK MUSICLAND STORES PLANS A CHAIN OF SUPERSTORES THAT WILL SELL A BROAD ARRAY OF MEDIARELATED PRODUCTS INCLUDING CDS VIDEO AND AUDIO CASSETTES BOOKS COMPUTER SOFTWARE AND VIDEO GAMES AS WELL AS TOYS AND GREETING CARDS RODMAN & RENSHAW'S CHAIRMAN RESIGNED FROM THE BROKERAGE FIRM ONLY TO CHANGE HIS MIND AMID APPARENT DISSATISFACTION ON THE FIRM'S BOARD WITH THE MAN HE CHOSE TO SUCCEED HIM OUSTED SUNBEAMOSTER CHAIRMAN PAUL KAZARIAN INTENDS TO USE A 160 MILLION SETTLEMENT HE WON FROM THE COMPANY TO REACTIVATE HIS INVESTMENT PARTNERSHIP AND GET BACK INTO CORPORATE TAKEOVERS AND TURNAROUNDS SMALL ISSUES OF JUNK BONDS ARE BECOMING MORE COMMON IN PART BECAUSE OF DEMAND FROM CASHRICH MUTUAL FUNDS HOWEVER THE TREND IS RAISING CONCERNS ABOUT THE ISSUES' LIQUIDITY ULTRAIR CEASED REGULAR OPERATIONS HAVING FAILED TO LURE ENOUGH PASSENGERS TO ITS LUXURY AIRLINE SERVICE THE CARRIER MAY CONTINUE AS A CHARTER BONDS LEHMAN BROTHERS TREASURY INDEX 528915 OFF 2178 COMMODITIES OIL 1775 A BARREL UP 12 CENTS DOW JONES FUTURES INDEX 12958 UP 075 SPOT INDEX 12434 UP 177 DOLLAR 10685 YEN UP 140 17195 MARKS UP 00163 9307260038 930726 BUSINESS BRIEF GEORGIAPACIFIC CORP GAF UNITS TERMINATE PLAN TO BUY ROOFING BUSINESS GEORGIAPACIFIC CORP SAID TWO UNITS OF GAF CORP A CLOSELY HELD MAKER OF SPECIALTY CHEMICALS AND BUILDING MATERIALS BASED IN WAYNE NJ ARE TERMINATING A DEFINITIVE AGREEMENT TO BUY GEORGIAPACIFIC'S ROOFING MANUFACTURING BUSINESS GEORGIAPACIFIC AN ATLANTABASED FOREST PRODUCTS AND BUILDING MATERIALS COMPANY SAID IT HAD EXPECTED THE SALE TO PRODUCE A GAIN OF ABOUT 24 MILLION OR 28 CENTS A SHARE GEORGIAPACIFIC HAD MADE THE AGREEMENT IN MARCH WITH GI HOLDINGS INC AND GAF ROOFING MANUFACTURING CORP A UNIT FORMED TO TAKE OVER THE GEORGIAPACIFIC BUSINESS GEORGIAPACIFIC FILED SUIT FRIDAY AGAINST THE GAF UNITS IN FEDERAL COURT IN MANHATTAN CHARGING BREACH OF CONTRACT GAF WOULDN'T SPECIFY WHY ITS UNITS AREN'T GOING THROUGH WITH THE PACT WE BELIEVE WE HAVE THE RIGHT TO TERMINATE THE AGREEMENT A SPOKESMAN SAID THE GAF SPOKESMAN SAID THE COMPANY INTENDS TO CONTINUE DISCUSSIONS WITH GEORGIAPACIFIC TO RESOLVE ISSUES THAT LED TO THE TERMINATION OF THE AGREEMENT 9307260037 930726 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP NEW COMPUTERS ARE YANKED OVER FEAR OF EXPORTING DATA DIGITAL EQUIPMENT CORP ABRUPTLY PULLED TWO NEW COMPUTERS OFF A GLOBAL COMPUTER NETWORK OUT OF CONCERN ABOUT POSSIBLE EXPORT VIOLATIONS EVEN THOUGH THE COMPUTERS NEVER LEFT THE COUNTRY DIGITAL MAYNARD MASS SAID ITS CONCERN WAS THAT FOREIGNERS COULD CONNECT TO THE COMPUTERS FROM ABROAD GENERATE DATA AND ILLEGALLY EXPORT IT OVER THE INTERNET GLOBAL COMPUTER NETWORK THE COMPUTERS WERE CONNECTED TO THE NETWORK FOR FIVE WEEKS IN APRIL AND MAY BEFORE BEING DISABLED THEY WERE RECONNECTED JULY 7 BUT ACCESS IS LIMITED TO PEOPLE WHO ARE SCREENED BY THE COMPANY SPOKESMAN MARK FREDRICKSON SAID DIGITAL'S ALPHA MODELS AREN'T SUPERCOMPUTERS BUT ARE POWERFUL ENOUGH TO BE RESTRICTED BY FEDERAL RULES CRITICS SAID THE INCIDENT SHOWS HOW LAWS INTENDED TO REGULATE EXPORT OF WEAPONS TECHNOLOGY CAN STIFLE INNOVATION AND HURT BUSINESS DIGITAL SAYS MAKING THE COMPUTER AVAILABLE WASN'T A VIOLATION A COMMERCE DEPARTMENT OFFICIAL AGREED BUT SAID EXPORT OF DATA GENERATED ON THE COMPUTER WOULD HAVE BEEN A VIOLATION OF THE REGULATIONS 9307260035 930726 WHO'S NEWS RODMAN & RENSHAW CHIEF WITHDRAWS RESIGNATION AFTER SUGGESTING SUCCESSOR BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL RODMAN & RENSHAW CAPITAL GROUP INC'S CHAIRMAN RESIGNED FROM THE BROKERAGE FIRM FRIDAY ONLY TO ABRUPTLY WITHDRAW HIS RESIGNATION OVER THE WEEKEND AMID APPARENT DISSATISFACTION ON THE COMPANY'S BOARD WITH THE MAN HE SUGGESTED AS HIS SUCCESSOR KURT B KARMIN 65 YEARS OLD QUIT HIS POSTS AS RODMAN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ON FRIDAY AND RECOMMENDED THAT MARSHALL GELLER A LOS ANGELES INVESTOR SUCCEED HIM MR GELLER WHO LAST WEEK DISCLOSED HE HOLDS A 51 STAKE IN THE CHICAGOBASED SECURITIES AND COMMODITIES BROKERAGE FIRM HAS SAID HE WANTS RODMAN TO CHANGE ITS CORPORATE STRATEGY PEOPLE CLOSE TO THE COMPANY BELIEVE MR GELLER 54 ALREADY HAS SIGNIFICANTLY ADDED TO HIS 5 STAKE FURTHER HE HAS THE BACKING OF OTHERS WITH SIZABLE RODMAN HOLDINGS MR GELLER SPOKE TO THE BOARD FRIDAY EXPRESSING HIS VIEWS ON BECOMING CHIEF EXECUTIVE BUT HIS REMARKS WERE REPORTEDLY RECEIVED UNFAVORABLY AND SOME DIRECTORS ASKED MR KARMIN TO RECONSIDER HIS RESIGNATION SEPARATELY RODMAN MANAGEMENT NOTIFIED THE BOARD OF AN EXPRESSION OF INTEREST BY ANOTHER SECURITIES FIRM MADE WITHIN THE PAST FEW WEEKS THE BOARD SAID IT WOULD RESPOND TO THE OVERTURE NO OTHER DETAILS WERE AVAILABLE MR KARMIN AND MR GELLER WERE UNAVAILABLE FOR COMMENT BUT A SPOKESMAN FOR MR KARMIN SAID MR GELLER'S REMARKS AND THE POSSIBILITY OF A MERGER LED MR KARMIN TO CHANGE HIS MIND KIRK DECIDED THAT MORE TIME NEEDS TO BE DEVOTED TO THE SUCCESSION ISSUE THE SPOKESMAN SAID THE ISSUE IS OFF THE TABLE FOR NOW THE BOARD WILL PROBABLY MEET AGAIN THIS WEEK THE SPOKESMAN SAID MR KARMIN WHO HOLDS A 63 STAKE IN RODMAN WAS FORMERLY A SENIOR VICE PRESIDENT WITH DREXEL BURNHAM LAMBERT HE HAS BEEN RODMAN'S CHAIRMAN SINCE 1990 HE HAS MOVED TO EXPAND THE FIRM'S SCOPE FAR BEYOND ITS MIDWESTERN BASE TO MAKE IT MORE OF A NATIONAL AND INTERNATIONAL FORCE MR GELLER BELIEVES THAT MR KARMIN'S STRATEGY HAS BEEN A FAILURE A GROUP OF RODMAN VETERANS ALSO RESISTED MR KARMIN'S EFFORTS SEVEN DIRECTORS HAVE LEFT THE BOARD SINCE LATE LAST YEAR THE EXPANSION HAS INDEED HAD SOME SETBACKS LAST MONTH RODMAN AGREED TO SELL ITS LONDONBASED FUTURES AND OPTIONS BUSINESS WHICH WAS HEADED BY KENNETH KARMIN KURT'S SON EARLIER THIS YEAR THE FIRM SHUT DOWN ITS ENERGY FUTURES AND CLEARING BUSINESS IN NEW YORK IF MR GELLER EMERGES VICTORIOUS SEVERAL HIGHLEVEL PERSONNEL CHANGES CAN BE EXPECTED BESIDES MR KARMIN TWO OF HIS CHIEF LIEUTENANTS PRESIDENT NORMAN MAINS AND EXECUTIVE VICE PRESIDENT MARK GRANT WHO RUNS RODMAN'S CAPITAL MARKETS OPERATION ARE EXPECTED TO BE DISMISSED BY MR GELLER PEOPLE CLOSE TO THE FIRM SAY MR MAINS WAS UNAVAILABLE FOR COMMENT AND MR GRANT DECLINED TO COMMENT EARLIER THIS MONTH MR GELLER SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT HE DOESN'T FULLY AGREE WITH THE CURRENT CORPORATE STRATEGIES AND GOALS BEING PURSUED BY RODMAN MR GELLER WAS A SENIOR MANAGING PARTNER FOR BEAR STEARNS & CO AND FOR SEVERAL YEARS HEADED ITS CHICAGO OFFICE AT THE END OF 1989 HE BECAME VICE CHAIRMAN OF GRUNTAL & CO WHICH HE LEFT IN 1990 TO FORM THE MERCHANT BANKING OPERATION GOLDENBERG & GELLER INC HE IS ON THE BOARDS OF A NUMBER OF FIRMS IN WHICH HE HOLDS SIGNIFICANT STAKES INCLUDING THE AMERIHOST PROPERTIES INC HOTEL CHAIN AND PLAYERS INTERNATIONAL INC A GAMBLING CONCERN WHERE HE RECENTLY WAS INTERIM PRESIDENT AND CHIEF OPERATING OFFICER RODMAN SHARES ROSE 125 CENTS TO 6625 IN COMPOSITE BIG BOARD TRADING FRIDAY 9307260034 930726 BUSINESS BRIEFS AL LABORATORIES INC SAID A UNIT GOT APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET A GENERIC CREAM TO TREAT VAGINAL YEAST INFECTIONS SHAW INDUSTRIES INC A CARPET MANUFACTURER ENTERED INTO A PACT TO BUY CLOSELY HELD ABINGDON CARPETS GWENT ENGLAND TERMS WEREN'T DISCLOSED CARD ESTABLISHMENT SERVICES INC IS BUILDING A 14 MILLION DATA PROCESSING NETWORK COMMAND AND OPERATIONS FACILITY IN HAGERSTOWN MD HEWLETTPACKARD CO WILL SELL 100 MILLION IN WORKSTATIONS OVER THE NEXT FIVE YEARS TO HITACHI LTD WHICH WILL RESELL THEM UNDER ITS OWN NAME ZURN INDUSTRIES INC LOST A 257 MILLION JUDGMENT IN A SUIT ALLEGING THAT IT FAILED TO MEET PERFORMANCE SPECIFICATIONS IN A BRAWLEY CALIF POWER PLANT IT BUILT IN THE LATE 1980S RALSTON PURINA CO SAID ABOUT 350 UNIONIZED WORKERS BEGAN A WORK STOPPAGE AT ITS PHILADELPHIA BAKERY AFTER NEGOTIATORS FAILED TO AGREE ON A NEW THREEYEAR CONTRACT 9307260033 930726 TECHNOLOGY BRIEF TANDY CORP PROPOSAL IS REACHED TO HELP INTERTAN RESTRUCTURE DEBT INTERTAN INC SAID IT HAS REACHED A TENTATIVE PACT WITH TANDY CORP TO RESTRUCTURE INTERTAN'S DEBT AND KEEP THE COMPANY FROM CLOSING THE DEAL WHICH STILL MUST BE APPROVED BY INTERTAN'S BANKS COMES ONE DAY AFTER THE BANKS DEMANDED REPAYMENT OF 54 MILLION IN LOANS AND STOPPED CLEARING THE COMPANY'S CHECKS THE BARRIE ONTARIO FIRM WAS SPUN OFF IN 1986 FROM TANDY FORT WORTH TEXAS INTERTAN OPERATES 2450 RADIO SHACK AND TANDY STORES OVERSEAS AND IS TANDY'S BIGGEST CUSTOMER TANDY EARLIER THIS MONTH STOPPED MAKING SHIPMENTS TO INTERTAN BECAUSE THE COMPANY WAS IN DEFAULT ON 76 MILLION OF ACCOUNTS PAYABLE UNDER THE PROPOSAL TANDY WILL BUY INTERTAN'S DEBT FROM THE BANKS AT A DISCOUNT THE DEBT THEN WILL BE RESTRUCTURED AND TANDY WILL RENEW LICENSE AND MERCHANDISE PACTS WITH INTERTAN FOR SEVEN YEARS IN EXCHANGE TANDY WILL RECEIVE WARRANTS TO PURCHASE AN UNDISCLOSED AMOUNT OF INTERTAN STOCK A TANDY SPOKESMAN SAID THE RETAILER WILL NOT SEEK TO PURCHASE A MAJORITY OF THE COMPANY BUT MOST LIKELY WILL OPT FOR BETWEEN 10 AND 20 OF INTERTAN'S SHARES OUTSTANDING 9307260032 930726 BUSINESS BRIEF GULF USA CORP BIG BOARD SUSPENDS TRADING IN ENERGY FIRM'S SECURITIES THE NEW YORK STOCK EXCHANGE SAID IT SUSPENDED TRADING IN GULF USA CORP'S COMMON STOCK AND OTHER SECURITIES AND WILL ASK THE SECURITIES AND EXCHANGE COMMISSION TO DELIST GULF'S ISSUES THE BIG BOARD SAID IT'S TAKING THESE ACTIONS BECAUSE THE COALMINING OIL AND GAS COMPANY HAS FALLEN BELOW ITS LISTING CRITERIA THE EXCHANGE CITED GULF USA'S PREVIOUSLY REPORTED ANNOUNCEMENT ON JULY 19 THAT IT IS INSOLVENT AND ITS LIABILITIES EXCEED ITS ASSETS THE COMPANY HASN'T ANY CONNECTION WITH THE FORMER GULF CORP WHICH WAS ACQUIRED BY CHEVRON CORP SEVERAL YEARS SEPARATELY GULF BASED IN WASHINGTON DC SAID ITS BOARD HAS BEEN RECONSTITUTED TO CONSIST OF WILLIAM J SCHARFFENBERGER LT GEN THOMAS B STAFFORD USAF RET AND ALBERT I HAWK GULF USA'S BOARD HAD COMPRISED SEVEN MEMBERS THE COMPANY SAID MR SCHARFFENBERGER ALSO WILL SERVE AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR SCHARFFENBERGER IS A FORMER CHAIRMAN AND CHIEF EXECUTIVE OF WHEELINGPITTSBURGH STEEL CORP A UNIT OF WHEELINGPITTSBURGH CORP 9307260031 930726 MARRIOTT HOLDERS APPROVE PLAN TO SPLIT REAL ESTATE AND HOTELS MAKING 2 FIRMS BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MARRIOTT CORP SHAREHOLDERS APPROVED A PLAN TO SPLIT THE COMPANY INTO A REALESTATE CONCERN WITH MOST OF MARRIOTT'S DEBT AND A HIGHGROWTH HOTELMANAGEMENT COMPANY THE SPLIT APPROVED BY 85 OF THE SHARES VOTED WAS THE MAIN ISSUE AT MARRIOTT'S ANNUAL MEETING FRIDAY UNDER THE PLAN WHICH IS EXPECTED TO TAKE EFFECT IN SEPTEMBER STOCKHOLDERS WILL RECEIVE A SHARE OF MARRIOTT INTERNATIONAL INC THE HOTELMANAGEMENT OPERATION FOR EACH MARRIOTT SHARE THEY OWN THEN MARRIOTT CORP WILL BE RENAMED HOST MARRIOTT CORP AN ENTITY THAT WILL OPERATE THE REALESTATE SIDE OF THE BUSINESS THE PLAN STUNNED BONDHOLDERS WHEN IT WAS ANNOUNCED IN OCTOBER THEY ARGUED THAT THE FINANCIAL SUPPORT OF THEIR DEBT WAS BEING UNDERMINED AND A SUIT BY SOME OF THE BONDHOLDERS IS STILL PENDING MARRIOTT SHARES HAVE RISEN 60 SINCE THE PLAN'S ANNOUNCEMENT IN NEW YORK STOCK EXCHANGE TRADING FRIDAY MARRIOTT CLOSED AT 27785 UP 125 CENTS THE STOCK HAS TRADED AS LOW AS 1550 IN THE PAST YEAR THE MARRIOTT FAMILY CONTROLS MORE THAN 25 OF THE 1008 MILLION SHARES OUTSTANDING AS OF JAN 1 MARRIOTT'S DIRECTORS SET A DISTRIBUTION DATE FOR THE SPLIT DIVIDEND OF SEPT 10 FOR SHARES OF RECORD SEPT 1 JW MARRIOTT 61 YEARS OLD AND CURRENTLY CHAIRMAN AND PRESIDENT OF THE COMPANY WILL BE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MARRIOTT INTERNATIONAL WHILE HIS BROTHER RICHARD E MARRIOTT 54 WILL BE CHAIRMAN OF HOST MARRIOTT RICHARD MARRIOTT IS CURRENTLY VICE CHAIRMAN AND EXECUTIVE VICE PRESIDENT OF THE COMPANY IN ADDITION TO THE BONDHOLDERS' LAWSUIT SEEKING TO BLOCK THE REORGANIZATION MARRIOTT HAD FACED A SUIT BY HOLDERS OF PREFERRED STOCK MARRIOTT SAID THAT THE HOLDERS HAVE AGREED TO DISMISS THEIR CASE AND CONVERT THEIR PREFERRED SHARES INTO COMMON STOCK THE SUIT BY THE GROUP OF BONDHOLDERS REPRESENTING ABOUT A DOZEN INSTITUTIONAL INVESTORS IS STILL PENDING HOWEVER UNDER THE REORGANIZATION PLAN HOLDERS OF ABOUT 15 BILLION IN MARRIOTT BONDS WOULD HAVE THE OPTION TO SWAP THEIR NOTES FOR NEW NOTES OF A UNIT OF THE NEW REALESTATE ENTITY THE COMPANY WILL RETAIN 21 BILLION OF MARRIOTT'S 3 BILLION LONGTERM DEBT AND WILL OWN 139 HOTELS AND OTHER REALESTATE ASSETS LARRY KILL ATTORNEY FOR THE BONDHOLDERS SAID THE SUIT WOULD PROCEED DESPITE THE SHAREHOLDER VOTE THIS WAS A VERY UNFAIR TRANSACTION HE SAID AS A SEPARATE COMPANY HOST MARRIOTT WOULD HAVE HAD ABOUT 12 BILLION IN SALES IN 1992 ACCORDING TO THE COMPANY'S ESTIMATES MARRIOTT INTERNATIONAL INC THE NEW HOTEL CONCERN WILL OPERATE MORE THAN 760 HOTELS THROUGH MARRIOTT'S FOUR HOTELMANAGEMENT UNITS AND RELATED MANAGEMENT SERVICES MARRIOTT INTERNATIONAL WOULD HAVE HAD 78 BILLION IN SALES LAST YEAR THE COMPANY ESTIMATES IN 1992 MARRIOTT HAD NET INCOME OF 85 MILLION OR 64 CENTS A SHARE ON SALES OF 872 BILLION IT HAD ABOUT 3 BILLION IN LONGTERM DEBT AS OF JAN 1 MOODY'S INVESTORS SERVICE INC DOWNGRADED ITS RATINGS ON THE SENIOR UNSECURED DEBT OF MARRIOTT CORP AFFECTING ABOUT 23 BILLION IN DEBT TO BA2 FROM SINGLEB2 MOODY'S SAID THE BONDEXCHANGE PLAN WILL LEAVE A HOST MARRIOTT UNIT HIGHLY LEVERAGED WITH MODEST DEBT PROTECTION MOODY'S SAID IT EXPECTS ONLY GRADUAL IMPROVEMENT IN OPERATING EARNINGS GIVEN THE SLUGGISH ECONOMY AND GLUT OF HOTEL ROOMS MOODY'S SAID HOWEVER THAT THE HOST MARRIOTT UNIT WILL BE WELLPOSITIONED FOR INCREASED EARNINGS WHEN THE RECOVERY HITS FULL SPEED 9307260030 930726 ECONOMY TRACKING THE ECONOMY BY MARY AGNES CAREY ANALYSTS FIGURE THAT THE SECONDQUARTER GROSS DOMESTIC PRODUCT FIGURE IS BOUND TO BE BETTER THAN THE WEAK 07 RISE FOR THE FIRST THREE MONTHS OF THE YEAR MICHAEL MORAN CHIEF ECONOMIST FOR DAIWA SECURITIES AMERICA INC IN NEW YORK ESTIMATES THE COMMERCE DEPARTMENT WILL REPORT A 23 JUMP WHEN IT RELEASES ITS FIRST LOOK AT SECONDQUARTER GDP SCHEDULED FOR THURSDAY MR MORAN BELIEVES THAT INCREASES IN CONSUMPTION SPENDING AND FEDERAL GOVERNMENT DEFENSE EXPENDITURES WERE MAJOR FACTORS IN THE RISE OF GDP THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US BUT OTHER SECTORS OF THE ECONOMY SUCH AS BUSINESS EQUIPMENT AND RESIDENTIAL CONSTRUCTION HAVE COOLED SLUGGISH EXPORTS AND RISING IMPORTS HAVE COMBINED TO CREATE A DOUBLEBARRELED SHOT OF WEAKNESS FROM THE TRADE SECTOR IN THE SECOND QUARTER MR MORAN SAID MR MORAN SEES ECONOMIC UNCERTAINTY CONTINUING UNTIL CONGRESS CONCLUDES ITS WORK ON THE BUDGET RECONCILIATION PACKAGE AND THE CLINTON ADMINISTRATION ANNOUNCES ITS PLANS FOR HEALTHCARE REFORM I THINK MANY PEOPLE ARE CONCERNED ABOUT THEIR TAX SITUATION AND THEIR POTENTIAL TAX LIABILITY ON THOSE TWO ISSUES MR MORAN SAID 9307260029 930726 ABREAST OF THE MARKET GROWTH INVESTING MAY BE POISED TO MAKE A COMEBACK BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL VALUE INVESTING MAY BE LOSING ITS EDGE OVER GROWTH IN THE CONSTANT BATTLE BETWEEN INVESTMENT STYLES VALUE PLAYERS THOSE WHO LOOK FOR UNDERVALUED STOCKS HAVE BEEN THE CLEARCUT LEADERS FOR MORE THAN A YEAR GROWTH INVESTORS WHO ARE WILLING TO PAY A PREMIUM FOR CONSISTENTLY STRONG EARNINGS GROWTH HAVE BEEN PUMMELED ACROSS A BROAD FRONT NOW WITH STOCK PRICES FLOATING NEAR ALLTIME HIGHS AND THE ECONOMY STILL SPUTTERING ALONG ANALYSTS AND PORTFOLIO MANAGERS SAY IT IS GETTING HARDER TO FIND VALUE STOCKS AT THE SAME TIME MANY OF THE ONCE PRICEY GROWTH STOCKS HAVE BEEN BEATEN DOWN TO LEVELS AT WHICH THEY ARE AGAIN BECOMING ATTRACTIVE TO SOME INVESTORS VALUE INVESTING IS LIKELY TO DOMINATE THE MARKET FOR SEVERAL MORE QUARTERS BUT EARLYBIRD INVESTORS SHOULD BEGIN SHOPPING AMONG THE OLD GROWTH STOCKS SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP WE'RE OUT ON A LIMB ON VALUE STOCKS HE WARNS I'M SEEING SOME SHIFT FROM VALUE BACK TO GROWTH I'M SURE I'M EARLY BUT I FEEL COMFORTABLE SHIFTING OUT OF STEELMAKER NUCOR INTO PHILIP MORRIS OR OUT OF CHRYSLER AND BACK INTO MERCK ORDINARILY VALUE STOCKS FARE WORSE THAN GROWTH STOCKS DURING PERIODS OF WEAK ECONOMIC GROWTH THAT'S BECAUSE INVESTORS ARE LOOKING FOR RELIABLY STRONG EARNINGS DURING SLUGGISH ECONOMIC PERIODS BUT A SHARP MOVE AWAY FROM MANY GROWTH STOCKS IN THE DRUG AND BRANDNAME CONSUMER GOODS SECTORS ALONG WITH A SHIFT IN THE INVESTING CYCLE HAS BROUGHT VALUE STOCKS TO THE FOREFRONT IN THE PAST YEAR AND A HALF BEGINNING EARLY LAST YEAR VALUE STOCKS REVERSED A THREEYEAR PERIOD OF UNDERPERFORMANCE BETWEEN 1989 AND 1991 THE STANDARD & POOR'S/BARRA VALUE INDEX GAINED 44 COMPARED WITH 891 FOR THE S&P/BARRA GROWTH INDEX IN THE PAST SIX QUARTERS HOWEVER THE VALUE INDEX HAS JUMPED 241 WHILE THE GROWTH INDEX IS UP JUST 24 THERE'S A TENDENCY FOR TRENDS LIKE THIS TO PERSIST FOR TWO TO THREE YEARS SAYS DENNIS LYNCH PRESIDENT OF LYNCH & MAYER A GROWTH STOCK INVESTMENT COMPANY THERE'S A POSSIBILITY VALUE WILL CONTINUE TO OUTPERFORM GROWTH IN COMING QUARTERS BUT EVENTUALLY THERE'S A REVERSAL EVEN DYEDINTHEWOOL VALUE INVESTORS ADMIT VALUE IS LOSING STEAM PAUL EHRLICHMAN PORTFOLIO MANAGER AT BRANDYWINE ASSET MANAGEMENT IN WILMINGTON DEL SAW HIS VALUE PORTFOLIO CLIMB 103 IN THE FIRST HALF OF 1993 COMPARED WITH A 49 GAIN FOR STANDARD & POOR'S 500STOCK INDEX AND IN 1992 BRANDYWINE GAINED 178 WHILE THE S&P ROSE 76 BUT THE DAYS OF VAST OUTPERFORMANCE ARE OVER SAYS MR EHRLICHMAN WE ARE NOW ENTERING A PERIOD WHERE WE'LL HAVE A DECREASE IN THE MASSIVE EXCESS RETURNS HE SAYS WE'RE GETTING BACK TO NORMAL EXCESS RETURNS WHICH MR EHRLICHMAN PUTS AT ABOUT TWO TO FOUR PERCENTAGE POINTS ABOVE THE S&P HE RECOMMENDS THAT INVESTORS SEEK OUT THE UNEXPLOITED POTENTIAL OF SOME VALUE STOCKS PARTICULARLY SMALLER BANKS AND BASIC INDUSTRIES MR EHRLICHMAN LIKES INTERNATIONAL PAPER WHICH HE EXPECTS TO BENEFIT FROM ECONOMIC RECOVERY WORLDWIDE HE ALSO POINTS TO METALS PRODUCER ASARCO A LIKELY CANDIDATE FOR RESTRUCTURING AND REALIZATION OF ASSETS THAT HAVE BEEN DEPRESSED BY POOR COMMODITIES PRICES AT THE SAME TIME VETERAN GROWTH PLAYERS ARE BIDING THEIR TIME WAITING FOR THEIR STYLE TO RETURN TO FAVOR DAVID MCHUGH PORTFOLIO MANAGER AT NORTHERN INVESTMENT COUNSELORS A DIVISION OF NORTHERN TRUST OF CHICAGO CONCEDES HIS PERFORMANCE HAS LAGGED BEHIND HIS PORTFOLIO RETURNED ABOUT ONE PERCENTAGE POINT LESS THAN S&P IN THE FIRST HALF IN 1992 IT GAINED 54 COMPARED WITH THE S&P'S 76 I JUST HOPE THE UNDERPERFORMANCE LASTS LESS THAN THE TIME VALUE MANAGERS WERE UNDER THE GUN HE SAYS MR MCHUGH BELIEVES GROWTHSTOCK INVESTING REMAINS REWARDING BUT IS MORE DIFFICULT BECAUSE OF THE COLLAPSE OF THE TRADITIONAL WINNERS IN CONSUMER AND DRUG STOCKS THE MARKET HAS CAST A PRETTY BIG SHADOW OVER HEALTH CARE AND CONSUMER NONDURABLES MR MCHUGH SAYS WE HAVE HAD TO LOOK FOR NEW AREAS TO INVEST IN BECAUSE MANY OF THE OLD RULES HAVEN'T BEEN WORKING HIS NEW FAVORITES ARE ECONOMICALLY SENSITIVE STOCKS WITH STRONG GROWTH SUCH AS SHAW INDUSTRIES A CARPET MANUFACTURER BESIDES BEING A LEADING CARPET MAKER IN THE US SHAW IS IMPROVING EARNINGS BY EXPANDING OVERSEAS MR MCHUGH SAYS SOME INVESTORS ARE FINDING IT PAYS TO SHUN LABELS ROBERT A VON PENTZ CHIEF INVESTMENT OFFICER AT RIGGS INVESTMENT MANAGEMENT IN WASHINGTON DC ISN'T SATISFIED BY STRICT ADHERENCE TO EITHER THE VALUE OR GROWTH APPROACH HE THINKS A PORTFOLIO THAT MIXES BOTH TYPES OF STOCKS IS SAFER IN THE CURRENT MARKET ENVIRONMENT AND THE STRATEGY HAS THE ADDED ADVANTAGE OF AVOIDING MARKET CYCLES THAT ROTATE BETWEEN VALUE AND GROWTH STOCKS WHO SAYS YOU HAVE TO BE GROWTH OR VALUE WE'VE GOT THE BEST OF BOTH CAMPS MR VON PENTZ SAYS YOU HAVE TO CHALLENGE THE GENERAL WISDOM TO GENERATE SOME BETTER RESULTS MR VON PENTZ'S PORTFOLIO GAINED 102 IN THE FIRST HALF COMPARED WITH THE S&P'S 49 DURING THE FOUR YEARS RIMCO HAS BEEN IN BUSINESS ITS RETURNS ARE 42 PERCENTAGE POINTS ABOVE THE S&P MR VON PENTZ LOOKS FOR STOCKS WITH GOOD GROWTH PROSPECTS BUT WITH RELATIVELY LOW PRICES INTEL CATERPILLAR AMERICAN EXPRESS AND THE BIG THREE AUTO MAKERS ARE ALL EXAMPLES OF WHAT HE WANTS TO OWN WE'RE LOOKING FOR THOSE STOCKS THAT HAVE ABOVE AVERAGE GROWTH GOING FORWARD AND REASONABLY LOW PRICEEARNINGS RATIOS AND THAT TAKES US IN DIFFERENT DIRECTIONS MR VON PENTZ SAYS BY PLAYING BOTH CAMPS SIMULTANEOUSLY WE TRY NOT TO BE WAY OUT OF FAVOR IN ANY ONE YEAR STOCK PRICES CLIMBED AS BARGAINHUNTING IN SOME BATTERED ISSUES OFFSET A WEAK BOND MARKET THE DOW JONES INDUSTRIAL AVERAGE GAINED 2152 POINTS TO 354674 STANDARD & POOR'S 500STOCK INDEX ADDED 259 TO 44710 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 120 TO 24746 BIG BOARD VOLUME FELL TO 218070000 FROM 248090000 THURSDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1026 TO 865 FOR THE WEEK THE DOW INDUSTRIALS GAINED 05 THE S&P 500 GAINED 03 AND THE BIG BOARD COMPOSITE WAS VIRTUALLY UNCHANGED WORLDWIDE STOCK PRICES FELL FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 093 TO 10616 CATERPILLAR ADDED 2 5/8 TO 80 1/4 ON BETTERTHANEXPECTED SECONDQUARTER EARNINGS THE HEAVYEQUIPMENT COMPANY REPORTED NET INCOME OF 66 CENTS A SHARE COMPARED WITH A LOSS OF 63 CENTS A YEAR EARLIER WHILE THE COMPANY SAID ITS EUROPEAN SALES THIS YEAR MAY BE WEAKER THAN EXPECTED IT SAID THAT SLUGGISHNESS SHOULD BE OFFSET BY SALES GAINS IN THE US DISNEY GAINED 2 1/8 TO 39 1/4 AFTER PRUDENTIAL SECURITIES UPGRADED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS GAINED 3 1/8 TO 49 3/8 ON BIG BOARD LEADING VOLUME OF 49 MILLION SHARES THE MEXICAN TELEPHONE COMPANY SAID ITS EARNINGS ROSE 36 IN THE FIRST HALF SALOMON BROTHERS UPGRADED ITS RATING ON THE STOCK TO BUY FROM HOLD RALSTON PURINA SKIDDED 3 5/8 TO 39 AFTER THE FOOD AND BATTERY COMPANY SAID ITS EARNINGS SLID TO 59 CENTS A SHARE IN THE THIRD QUARTER ENDED LAST MONTH FROM INCOME FROM OPERATIONS OF 68 CENTS A YEAR EARLIER CAMPBELL SOUP FELL 2 5/8 TO 36 7/8 AFTER THE FOOD COMPANY DISCLOSED PLANS TO RECORD A CHARGE OF 98 CENTS TO 103 A SHARE IN ITS RESULTS FOR THE FISCAL YEAR ENDING NEXT MONTH GOLDMAN SACHS TOOK THE COMPANY OFF ITS RECOMMENDED LIST SUNBEAMOSTER JUMPED 2 5/8 TO 18 3/8 THE CONSUMER PRODUCTS COMPANY SAID IT SETTLED ITS DISPUTES WITH ITS OUSTED CHAIRMAN PAUL B KAZARIAN IT REPURCHASED 173 MILLION IN STOCK FROM A PARTNERSHIP HE CONTROLS AND GAVE HIM A 39 MILLION SEVERANCE PAYMENT DOWNEY SAVINGS & LOAN CLIMBED 2 1/4 TO 21 5/8 AFTER THE THRIFT HIRED LEHMAN BROTHERS TO HELP IT EVALUATE ALTERNATIVES TO MAXIMIZE SHAREHOLDER VALUE 9307260028 930726 LETTERS TO THE EDITOR RELATIVISM THREATENS HUMAN RIGHTS CONCEPT YOUR JUNE 16 EDITORIAL KLEPTOCRATS' CONFERENCE HAD A CATCHY HEADLINE BUT LAUNCHED A MISGUIDED SALVO AT THE INTERNATIONAL HUMAN RIGHTS TREATIES FOR WHICH SECRETARY OF STATE WARREN CHRISTOPHER PLEDGED US SUPPORT IN HIS OPENING REMARKS AT THE WORLD CONFERENCE ON HUMAN RIGHTS IN VIENNA FURTHER THE EDITORIAL MAY LEAVE ONE WITH THE IMPRESSION THAT THE US HAS DONE NOTHING WITH REGARD TO RATIFICATION OF HUMAN RIGHTS TREATIES SINCE THE CARTER ADMINISTRATION THIS IS NOT TRUE THE REAGAN ADMINISTRATION RATIFIED THE GENOCIDE CONVENTION THE BUSH ADMINISTRATION BOTH RATIFIED THE COVENANT ON CIVIL AND POLITICAL RIGHTS AND GUIDED THE CONVENTION AGAINST TORTURE THROUGH AN AFFIRMATIVE VOTE IN THE SENATE THERE ARE TWO FUNDAMENTAL THREATS TO THE CONCEPT OF HUMAN RIGHTS THAT WAS DEVELOPED IN THE AFTERMATH OF WORLD WAR II AND INCORPORATED IN THE UNIVERSAL DECLARATION OF HUMAN RIGHTS ADOPTED BY THE UNITED NATIONS IN 1948 FIRST IS THE IDEA THAT THESE RIGHTS DO NOT APPLY AS A SINGLE STANDARD BY WHICH ALL GOVERNMENTS WILL BE JUDGED BUT RATHER ARE SUBJECT TO VARYING INTERPRETATIONS DEPENDING ON PARTICULARITIES SUCH AS CULTURE AND RELIGION THIS IS THE CHALLENGE TO THE CONCEPT OF UNIVERSALITY SECOND IS THAT THERE ARE TWO SETS OF RIGHTS ONE THE CIVIL AND POLITICAL SET THE OTHER THE ECONOMIC SOCIAL AND CULTURAL SET AND THAT THERE IS A BASIC CONFLICT OR PRIORITY OF RANK BETWEEN THEM THIS IS THE CHALLENGE TO THE CONCEPT OF THE INDIVISIBILITY OF HUMAN RIGHTS AND IS A LEFTOVER OF THE COLD WAR IT IS TO THE CREDIT OF THE CURRENT US ADMINISTRATION THAT IT HAS UPHELD THE FUNDAMENTAL IDEA OF HUMAN RIGHTS AS BOTH UNIVERSAL AND INDIVISIBLE IN SO DOING IT MET THE CHALLENGE PRESENTED BY SOME ASIAN GOVERNMENTS THAT CONTINUE TO ARGUE CULTURAL RELATIVISM THE US AVOIDED THE TRAP OF OPTING FOR ONE SET OF RIGHTS OVER THE OTHER THEREBY ANNOUNCING THE END OF THE COLD WAR DICHOTOMY THERE MAY HAVE BEEN MANY FAILURES AT THE WORLD CONFERENCE BUT SECRETARY CHRISTOPHER'S ANNOUNCEMENT OF SUPPORT FOR A CONTINUING PROGRAM OF US RATIFICATION OF HUMAN RIGHTS TREATIES IS NOT ONE OF THEM INSTEAD HE ANNOUNCED A PLATFORM ON WHICH THE US CAN STAND IN PROMOTING AND PROTECTING HUMAN RIGHTS AS IT MOVES INTO THE 21TH CENTURY THEREIN LIES VICTORY OVER THE CRUEL LEGACY OF DIVISION AMONG RIGHTS THAT MARKED THE COLD WAR 9307260027 930726 ROTHSCHILD REALTY TO ACQUIRE UNIT OF ANGELES CORP BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ROTHSCHILD REALTY INC IN A MOVE THAT WILL MAKE IT ONE OF THE BIGGEST DEVELOPERS IN THE OUTLET SHOPPING CENTER INDUSTRY SAID IT PLANS TO ACQUIRE FACTORY MERCHANTS MALLS INC FROM ANGELES CORP THE PRICE WASN'T DISCLOSED INDUSTRY EXPERTS PUT THE VALUE OF THE TRANSACTION WHICH INCLUDES THREE CENTERS AT BETWEEN 50 MILLION AND 100 MILLION ROTHSCHILD REALTY OFFICIALS IN AN INTERVIEW ALSO SAID THEY ARE CONSIDERING TAKING ITS REAL ESTATE HOLDINGS PUBLIC IT IS DEFINITELY SOMETHING THAT WE HAVE CONSIDERED AND WILL CONTINUE TO CONSIDER SAID C CAMMACK MORTON MANAGING DIRECTOR OF ROTHSCHILD REALTY AN AFFILIATE OF ROTHSCHILD INC THE US ARM OF THE INTERNATIONAL ROTHSCHILD BANKING GROUP IT HAS BEEN A HOT MARKET FOR REAL ESTATE OUTLET EQUITY OFFERINGS THIS YEAR TANGER FACTORY OUTLET CENTERS AND FACTORY STORES OF AMERICA WENT PUBLIC RECENTLY AND SHARES IN BOTH COMPANIES ARE UP SHARPLY THIS MONTH MCARTHUR/GLEN GROUP SAID IT ALSO PLANNED TO GO PUBLIC FACTORY MERCHANTS MALLS IS A SUBSIDIARY OF ANGELES A LOS ANGELESBASED REAL ESTATE INVESTMENT CONCERN OPERATING UNDER THE PROTECTION OF CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE ALTHOUGH FACTORY MERCHANTS MALLS ISN'T IN CHAPTER 11 THE DEAL WITH ROTHSCHILD REQUIRES THE APPROVAL OF THE CREDITOR'S COMMITTEE WHICH MEETS THIS WEEK AND THE BANKRUPTCY COURT UNDER BANKRUPTCY LAW ANOTHER BIDDER COULD SUBMIT A BID ON THE PROPERTIES BUT ROTHSCHILD'S MR MORTON SAID THAT THERE IS A HIGH PROBABILITY THE DEAL WILL CLOSE IN SEPTEMBER KRIS HUNDLEY EXECUTIVE EDITIOR OF VALUE RETAIL NEWS A TRADE JOURNAL IN CLEARWATER FLA SAID THAT THE ACQUISTION BY ROTHSCHILD IS A SIGN OF INCREASING CONSOLIDATION IN THE INDUSTRY IT'S QUICKLY BECOMING A CLASH OF THE TITANS THE BIG GUYS HAVE THE CAPITAL TO ACQUIRE THE TROUBLED GUYS SHE SAID IN ADDITION TO OWNING THREE CENTERS FACTORY MERCHANTS MALLS MANAGES THREE OTHER CENTERS ROTHSCHILD CURRENTLY OPERATES NINE CENTERS AND HAS TWO UNDER DEVELOPMENT ROTHSCHILD WILL HAVE A TOTAL OF FOUR MILLION SQUARE FEET UNDER DEVELOPMENT OR IN OPERATION AFTER THE DEAL IS COMPLETED 9307260026 930726 BUSINESS BRIEF GUOCO GROUP LTD OVERSEAS TRUST BANK SALE IS SLATED HONG KONG SAYS THE HONG KONG GOVERNMENT SAID IT SIGNED AN AGREEMENT IN PRINCIPLE FOR GUOCO GROUP LTD TO BUY OVERSEAS TRUST BANK LTD OR OTB WHILE DETAILED TERMS REMAIN TO BE COMPLETED THE CONSIDERATION REPRESENTS A SUBSTANTIAL PREMIUM OF 420 MILLION HONG KONG DOLLARS US542 MILLION OVER THE ADJUSTED NET ASSET VALUE OF OTB GROUP ON JUNE 30 THE GOVERNMENT DECLINED TO REVEAL FINANCIAL DETAILS OF THE BANK THAT IT HAS BEEN NURSING TO HEALTH SINCE 1985 MICHAEL CARTLAND SECRETARY FOR FINANCIAL SERVICES SAID OTB'S NET ASSET VALUE IS BEING AUDITED AND HE DECLINED TO PROVIDE RECENT COMPARATIVE FIGURES HE SAID A FINAL PRICE HASN'T BEEN SET AND WON'T LIKELY BE KNOWN UNTIL LATER THIS YEAR THE FORMAL AGREEMENT IS EXPECTED TO BE SIGNED BY THE END OF THIS MONTH 9307260025 930726 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FIVE NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED FIVE INITIAL PUBLIC OFFERINGS AND THE NASDAQ OVERTHECOUNTER SECURITIES MARKET ANNOUNCED 22 NEW LISTINGS INCLUDING 18 INITIAL PUBLIC OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS CAMDEN PROPERTY TRUST HOUSTON A REAL ESTATE INVESTMENT TRUST UNDER CPT NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 CHICAGO A CLOSEDEND FUND UNDER NPX UNITED MERIDIAN CORP HOUSTON AN INDEPENDENT OIL AND GAS COMPANY UNDER UMC AND MUNICIPAL PARTNERS FUND II INC NEW YORK A CLOSEDEND FUND UNDER MNP USA WASTE SERVICES INC A DALLASBASED WASTE MANAGEMENT COMPANY THAT PREVIOUSLY TRADED OVERTHECOUNTER BEGAN TRADING UNDER UW THE AMERICAN STOCK EXCHANGE BEGAN TRADING THREE CLOSEDEND FUNDS MANAGED BY A UNIT OF CHICAGOBASED JOHN NUVEEN & CO NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND 2 UNDER NDM NUVEEN OHIO PREMIUM INCOME MUNICIPAL FUND 2 UNDER NOO AND NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND 2 UNDER NVI THE EXCHANGE ALSO BEGAN TRADING TWO OTHER CLOSEDEND FUNDS VOYAGEUR COLORADO INSURED MUNCIPAL INCOME FUND INC UNDER VCF AND MASSACHUSETTS HEALTH & EDUCATION TAXEXEMPT TRUST UNDER MHE THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS CYRIX CORP RICHARDSON TEXAS A MAKER OF PARTS FOR PERSONAL COMPUTERS UNDER CYRX EVANS SYSTEMS INC BAY CITY TEXAS A DISTRIBUTOR OF REFINED PETROLEUM PRODUCTS UNDER EVSI GENERAL ATLANTIC RESOURCES INC DENVER AN INDEPENDENT OIL AND GAS OPERATING COMPANY UNDER GARI HOLLYWOOD ENTERTAINMENT CORP PORTLAND ORE OWNER OF VIDEO STORES UNDER HLYW JOHNSTOWN AMERICA INDUSTRIES INC JOHNSTOWN PA A MAKER OF RAILROAD FREIGHT CARS AND OTHER PRODUCTS UNDER JAII METROCALL INC ALEXANDRIA VA A PROVIDER OF PAGING SERVICES UNDER MCLL THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS RURAL/METRO CORP SCOTTSDALE ARIZ A PROVIDER OF AMBULANCE AND SAFETYRELATED SERVICES UNDER RURL DATAWARE TECHNOLOGIES INC CAMBRIDGE MASS A PROVIDER OF SOFTWARE AND SERVICES TO THE CDROM MARKET UNDER DWTI FIRST FEDERAL SAVINGS & LOAN DEFIANCE OHIO A SAVINGS AND LOAN ASSOCIATION UNDER FDEF AMERICAN OILFIELD DIVERS INC LAFAYETTE LA A PROVIDER OF UNDERSEA SERVICES TO THE OFFSHORE OIL AND GAS INDUSTRY UNDER DIVE ATLANTIC COAST AIRLINES INC STERLING VA A REGIONAL AIRLINE UNDER ACAI STARCRAFT AUTOMOTIVE CORP GOSHEN IND A MAKER OF CUSTOM VAN CONVERSIONS UNDER STCR OTHER NEW LISTINGS INCLUDE ARROW TRANSPORTATION CO PORTLAND ORE A TRANSPORTER OF BULK CHEMICAL PRODUCTS UNDER ARRW MDL INFORMATION SYSTEMS INC SAN LEANDRO CALIF A SUPPLIER OF SOFTWARE TO CHEMICAL AND DRUG COMPANIES UNDER MDLI MORGAN GROUP ELKHART IND A CONTRACT CARRIER SERVING THE MANUFACTURED HOUSING AND RECREATIONAL VEHICLE INDUSTRIES UNDER MRGN RENAL TREATMENT CENTERS INC BERWYN PA A PROVIDER OF DIALYSIS TREATMENTS UNDER RXTC STANT CORP RICHMOND IND A MAKER OF AUTOMOTIVE PARTS UNDER STNT AND UNITED INTERNATIONAL HOLDINGS INC DENVER A PROVIDER OF TV SERVICES OUTSIDE THE US UNDER UIHIA PHILLIPS & JACOBS INC A PRINTING AND GRAPHIC ARTS SUPPLIER BASED IN PENNSAUKEN NJ AND SPUN OFF FROM THE TASTY BAKING CO BEGAN TRADING UNDER PNJIV CONCURRENT COMPUTER CORP OCEANPORT NJ A SUPPLIER OF COMPUTER SYSTEMS THAT PREVIOUSLY TRADED ON THE NASDAQ SMALL CAP MARKET BEGAN TRADING UNDER CCUR TWO COMPANIES THAT TRADED IN THE PINK SHEETS BEGAN TRADING ON THE NATIONAL MARKET COMMUNITY FIRST BANK JACKSONVILLE FLA A COMMERCIAL BANK UNDER CFBN AND KTEL INTERNATIONAL INC PLYMOUTH MINN A SELLER OF MUSIC VIDEO AND OTHER CONSUMER GOODS UNDER KTEL THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON TIG HOLDINGS INC WOODLAND HILLS CALIF A HOLDING COMPANY FOR A PROPERTY AND CASUALTY INSURER WHILE THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON BED BATH & BEYOND SPRINGFIELD NJ A SELLER OF HOME FURNISHINGS AND OTHER MERCHANDISE 9307260024 930726 MARKETING & MEDIA NOTED FOOTBALL THOMAS E SPOCK 37 WAS NAMED TO THE NEW POST OF CHIEF FINANCIAL OFFICER OF THE NATIONAL FOOTBALL LEAGUE HE HAD BEEN CHIEF FINANCIAL OFFICER AND VICE PRESIDENT ADMINISTRATION OF THE WORLD LEAGUE OF AMERICAN FOOTBALL 9307260023 930726 VMARK SOFTWARE EXPECTS A JUMP IN 2NDPERIOD NET BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL FRAMINGHAM MASS FUELED BY STRONG SOFTWARE SALES VMARK SOFTWARE INC EXPECTS SECONDQUARTER EARNINGS OF 16 CENTS A SHARE SHARPLY HIGHER THAN COMPARABLE YEAREARLIER RESULTS ON A 60 JUMP IN REVENUE ITS CHIEF EXECUTIVE SAID REVENUE WAS 7 MILLION FOR THE PERIOD UP FROM A YEAREARLIER 44 MILLION ACCORDING TO CEO JAMES J CAPELESS VMARK WHICH HAS POSTED STRONG QUARTERLY GAINS SINCE GOING PUBLIC LAST YEAR EXPECTS TO REPORT NET INCOME OF ABOUT 1 MILLION THAT WOULD BE A 56 IMPROVEMENT OVER THE YEAREARLIER PERIOD'S NET ON 10 FEWER SHARES OF 11 CENTS A SHARE OR 643000 BEFORE A ONETIME GAIN EARNINGS WERE 16 CENTS A SHARE AFTER THE TAXRELATED GAIN MR CAPELESS SAID HE EXPECTS VMARK TO CONTINUE GROWING AT THE SECONDQUARTER PACE THROUGH THE YEAR BUT MADE NO SPECIFIC FORECAST ANALYST LOUIS GIGLIO OF BEAR STEARNS & CO EXPECTS THE COMPANY TO POST NET OF 70 CENTS A SHARE FOR THE YEAR ON REVENUE OF 29 MILLION AND EXPECTS 85 CENTS TO 90 CENTS A SHARE NEXT YEAR ON REVENUE OF 40 MILLION PROFIT IN 1992 WAS 46 CENTS A SHARE BEFORE TAX CARRYFORWARDS ON REVENUE OF 188 MILLION VMARK'S SECONDQUARTER BALANCE SHEET WILL SHOW NO DEBT MR CAPELESS SAID AND ABOUT 10 MILLION IN CASH ON HAND VMARK MAKES COMMERCIAL DATABASE AND APPLICATIONDEVELOPMENT COMPUTER PROGRAMS BUILT AROUND THE UNIX OPERATING SYSTEM BUSINESS HAS BEEN STRONG AS COMPANIES SHIFT FROM OLDER PROPRIETARY OPERATING SYSTEMS TO UNIX A WIDELY LICENSED STANDARD VMARK HAS ALSO FOCUSED ON CONVERTING SOFTWARE WRITTEN FOR THE AGING PICK OPERATING SYSTEM INTO UNIX WE TAKE OLDER PROGRAMS AND MAKE THEM SOCIALLY ACCEPTABLE GIVING THEM NEW LIFE AND A MUCH BROADER MARKET MR CAPELESS SAID WITH ITS EMPHASIS ON PICK SOME ANALYSTS WORRY THAT VMARK'S MARKET WILL DRY UP VARIOUS ESTIMATES SUGGEST THE MARKET IS ONEFIFTH CONVERTED INDICATING ONLY SEVERAL MORE YEARS OF STEADY BUSINESS MR CAPELESS HOWEVER SAYS THAT TWO OF EVERY THREE CUSTOMERS ARE NEW SALES NOT CUSTOMERS CONVERTING PICK AND HE POINTS TO NEW PRODUCTS THAT HE SAYS WILL PUSH VMARK BEYOND THE NICHE WHERE IT STARTED LATER THIS YEAR VMARK WILL HAVE TOOLS FOR DATABASE DEVELOPMENT ON PCS HE SAID AND BY THE FIRST QUARTER NEXT YEAR A PROGRAM THAT CONVERTS UNIX CODE TO MICROSOFT CORP'S NEW WINDOWS NT OPERATING SYSTEM NT OPENS UP A COMPLETELY NEW SET OF OPPORTUNITIES MR CAPELESS SAID 9307260022 930726 INTERNATIONAL GARDINI AND CAGLIARI SUICIDES RAISE QUESTIONS IN ENIMONT CASE THAT MAY NEVER BE ANSWERED BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN JUST AFTER 8 AM FRIDAY SAN BABILA CHURCH BUSTLED WITH PREPARATIONS FOR THE FUNERAL OF GABRIELE CAGLIARI THE FORMER CHAIRMAN OF STATE ENERGY GIANT ENTE NAZIONALE IDROCARBURI SPA OR ENI WHO SUFFOCATED HIMSELF WITH A PLASTIC BAG IN SAN VITTORE PRISON THREE DAYS EARLIER FIVE BLOCKS AWAY IN THE 18THCENTURY PALAZZO BELGIOIOSO RAUL GARDINI ONE OF ITALY'S MOST FLAMBOYANT ENTREPRENEURS OF THE 1980S AND AN OLD RIVAL OF MR CAGLIARI'S SHOT HIMSELF IN THE RIGHT TEMPLE THE TWO EVENTS ITALIAN POLICE NOW SAY PROBABLY WERE CONNECTED ON THE OTHER SIDE OF THE CITY THAT MORNING A CLOSE ACQUAINTANCE OF MR GARDINI'S AND MR CAGLIARI'S WAS SCHEDULED TO BEGIN HIS FIFTH DAY OF INTERROGATIONS WITH PROSECUTORS GIUSEPPE GAROFANO MR GARDINI'S SUCCESSOR AS CHAIRMAN OF THE FERRUZZI GROUP'S MONTEDISON SPA FOR A WEEK HAD BEEN DETAILING TO INVESTIGATORS A SERIES OF FINANCIAL IRREGULARITIES ALLEGED FALSIFICATION OF COMPANY BALANCE SHEETS LARGE BRIBES TO POLITICIANS AND SOPHISTICATED OFFSHORE ACCOUNTING MANEUVERS TO COVER LOSSES WHAT HE SAID WAS ENOUGH FOR MAGISTRATES TO ISSUE ARREST WARRANTS FOR FIVE TOP FERRUZZI EXECUTIVES FRIDAY AFTERNOON ONE WAS MEANT FOR MR GARDINI THE ONE THING THESE DEATHS HAVE IN COMMON IS THE FAILED ENIMONTEDISON CHEMICAL JOINT VENTURE ENIMONT SAYS MR GARDINI'S BIOGRAPHER GIUSEPPE TURANI THE ONLY THING WE KNOW FOR SURE IS THAT THE TWO PEOPLE WHO KNEW EVERYTHING ABOUT ENIMONT CAGLIARI AND GARDINI ARE DEAD AND WHAT THEY HAD TO HIDE WE'LL PROBABLY NEVER KNOW INDEED THE ENIMONT FACTOR GOES BEYOND THE SUICIDES OF ITS TWO MAIN PROTAGONISTS A THIRD MAJOR PLAYER SERGIO CASTELLARI THE FORMER MANAGING DIRECTOR OF THE GOVERNMENT MINISTRY IN CHARGE OF OVERSEEING ENIMONT WAS FOUND DEAD UNDER MYSTERIOUS CIRCUMSTANCES IN FEBRUARY MR GAROFANO'S RECENT TESTIMONY ANALYSTS SAY WAS ENOUGH TO CHARGE MR GARDINI WITH FALSIFYING BALANCE SHEETS AND ILLEGAL POLITICALPARTY FINANCING WHILE HE WAS THE CHAIRMAN OF FERRUZZI AND MONTEDISON AT THE VERY LEAST THE CHARGES WOULD HAVE IRREPARABLY DAMAGED HIS REPUTATION JUST AS HE WAS ATTEMPTING TO BUILD A EUROPEAN FOOD CONGLOMERATE AND ASIDE FROM THE ALLEGED CRIMINAL MISCONDUCT AT FERRUZZI AND ENIMONT THE CASE IS ALSO RAISING QUESTIONS ABOUT HOW PUBLICLY TRADED FERRUZZI FINANZIARIA SPA AND ITS MAIN INDUSTRIAL GROUP MONTEDISON WERE ABLE FOR YEARS TO HIDE THE ALLEGED FINANCIAL IRREGULARITIES WHILE 240 BANKS KEPT LENDING IT MONEY PRICE WATERHOUSE KEPT CERTIFYING ITS ACCOUNTS AND MILAN STOCK MARKET AUTHORITY CONSOB APPARENTLY ASKED NO QUESTIONS CONSOB BELATEDLY OPENED AN INVESTIGATION THIS MONTH MAGISTRATES ARE FOCUSING MAINLY ON TWO ELEMENTS THE FIRST IS AN ALLEGED BRIBE OF 80 BILLION LIRE TO 100 BILLION LIRE 499 MILLION TO 624 MILLION PAID BY MONTEDISON TO ENI WHEN MONTEDISON SOLD ITS 40 STAKE IN ENIMONT BACK TO ENI IN 1990 THE SECOND IS THE ORIGIN OF A SURPRISE LOSS OF 435 BILLION LIRE ANNOUNCED AT THE MONTEDISON SHAREHOLDER MEETING JUNE 28 AND ATTRIBUTED TO A DUTCH ANTILLESBASED UNIT OF MONTEDISON INTERNATIONAL HOLDING CO ENIMONT WAS HAILED AT ITS CREATION IN LATE 1988 AS A TEXTBOOK EXAMPLE OF COOPERATION BETWEEN THE PUBLIC AND PRIVATE SECTORS IT HAD 16 TRILLION LIRE IN SALES 50000 EMPLOYEES AND MERGED THE GOVERNMENT'S CHEMICAL ASSETS WITH THE UPSTREAM CHEMICAL UNITS OF MONTEDISON BUT AFTER A SERIES OF DISPUTES IN 1990 MR GARDINI THEN CHAIRMAN OF FERRUZZIMONTEDISON AGREED TO SELL MONTEDISON'S 40 STAKE BACK TO ENI FOR 285 TRILLION LIRE AT THE TIME 25 BILLION MAGISTRATES ALLEGE THAT THE PRICE COULD HAVE INCLUDED A BRIBE BY MR GARDINI TO ENI BUT THE DETAILS MAY NEVER BE KNOWN WHEN ENIMONT WAS DISSOLVED IN 1990 THOSE INVOLVED WERE MR CAGLIARI MR GARDINI MR CASTELLARI AND MINISTER OF STATE PARTICIPATIONS FRANCO PIGA MR PIGA DIED OF A HEART ATTACK TWO YEARS AGO AND THE OTHER THREE ARE NOW DEAD ACCORDING TO TESTIMONY LEAKED THURSDAY NIGHT MR GAROFANO TOLD INVESTIGATORS THAT A BRIBE OF 80 BILLION LIRE TO 100 BILLION LIRE WAS PAID BY MONTEDISON TO ENI WITH MR GARDINI'S APPROVAL IN 1990 MR GAROFANO SAID IT WAS FINANCED THROUGH SLUSH FUNDS MR GARDINI ORDERED MR GAROFANO AND CARLO SAMA MR GARDINI'S BROTHERINLAW AND SUCCESSOR TO MR GAROFANO AS MONTEDISON CHAIRMAN TO CREATE MR GAROFANO EXPLAINED THE FUNDS CAME FROM CAPITAL GAINS ON REALESTATE DEALS DONE THROUGH FOREIGN BANKS AND KEPT OFF THE BOOKS BEFORE HE COMMITTED SUICIDE TUESDAY MR CAGLIARI ADMITTED THAT ENI PAID BRIBES TO POLITICAL PARTIES INCLUDING A 10 BILLION LIRE KICKBACK FROM THE ENIMONT VENTURE ACCORDING TO HIS LAWYER VITTORIO D'AIELLO BUT MR CAGLIARI WAS RELUCTANT TO NAME NAMES IN THE CASE STATECONTROLLED ENI CONSIDERED THE EPICENTER OF THE KICKBACK SCANDAL HAD ANNOUNCED AT THE ANNUAL SHAREHOLDERS MEETINGS OF TWO SUBSIDIARIES IN JUNE THAT THEY HAD PAID KICKBACKS TOTALING 245 BILLION LIRE TO POLITICIANS FROM 1987 TO 1992 THE OTHER MAIN ELEMENT IN THE INVESTIGATION AND PERHAPS THE MORE DAMNING FOCUSES ON THE UNEXPECTED LOSS OF 435 BILLION LIRE ACCORDING TO MR GAROFANO'S TESTIMONY THE LOSS HAD BEEN CARRIED OVER SINCE 1989 WHEN MR GARDINI WAS ACCUSED BY THE CHICAGO BOARD OF TRADE OF TRYING TO CORNER THE WORLD MARKET FOR SOYBEANS THE COMMODITY FUTURES TRADING COMMISSION ORDERED MR GARDINI TO CLOSE ALL FUTURES CONTRACTS IMMEDIATELY AFTER THE CBOT ACCUSATION RESULTING IN A 350 MILLION TO 450 MILLION LOSS FOR FERRUZZI THAT YEAR MR GAROFANO SAID HE SAID IT SHOULD HAVE BEEN REPORTED IN FERRUZZI FINANZIARIA'S 1989 BALANCE SHEETS BUT HE SAID MR GARDINI SAID TO REPORT ONLY 150 MILLION THAT YEAR AND HE WOULD FIND ANOTHER WAY TO COVER THE LOSSES THE LOSSES MR GAROFANO SAID WERE APPARENTLY COVERED THROUGH SOCALLED BACKTOBACK OPERATIONS SOPHISTICATED ACCOUNTING MECHANISMS WHERE USING A BANK AS AN INTERMEDIARY A COMPANY CAN HIDE A LOSS BY CREATING A FICTITIOUS PROFIT AND PARKING THE LOSS AT A UNIT TEMPORARILY BUT THE BILL CAME DUE THIS YEAR WHEN THE FERRUZZI FAMILY ANNOUNCED ITS HOLDING COMPANY HAD MISSED INTEREST PAYMENTS ON MORE THAN 15 TRILLION LIRE IN NET DEBT FOR 1992 AND TURNED OVER FINANCIAL AND MANAGEMENT CONTROL TO CREDITOR BANKS THE BANKS COMPANY SOURCES SAID INSISTED ON DECLARING A LOSS OF 320 BILLION LIRE IN THE 1992 ACCOUNTS OF MONTEDISON PROMPTING MAGISTRATES TO OPEN THEIR INVESTIGATION AND PRICE WATERHOUSE TO REVOKE ITS CERTIFICATION MEANWHILE THE FERRUZZI FAMILY REPORTEDLY ASKED MR GARDINI TO RETURN AN UNDISCLOSED PORTION OF THE PAYMENT IT MADE TO MR GARDINI AND HIS WIFE IDINA FERRUZZI WHEN MR GARDINI WAS OUSTED AS CHAIRMAN IN 1991 THE FAMILY ALLEGEDLY TOLD MR GARDINI HE LEFT HIDDEN DEBTS WHEN HE DEPARTED MR GAROFANO TOLD INVESTIGATORS THE 435 BILLION LIRE SHOULDN'T HAVE APPEARED IN MONTEDISON BALANCE SHEETS LAST YEAR BUT IN THOSE OF FERRUZZI FINANZIARIA AS A RESULT HE ALLEGES BOTH BALANCE SHEETS ARE FALSE FOR 1992 AND AT LEAST ONE HAS BEEN FALSE SINCE 1989 THE REVELATIONS WILL HAVE FURTHER REPERCUSSIONS BASED ON MR GAROFANO'S TESTIMONY THREE TOP FERRUZZI OFFICIALS WERE ARRESTED FRIDAY AND A FOURTH TURNED HIMSELF IN SATURDAY MEANWHILE AUTHORITIES ARE TAKING MEASURES TO ENSURE MR GARDINI'S DEATH IS THE LAST SURROUNDING THE CASE SOME 20 GUARDS ARE WATCHING MR GAROFANO INSIDE OPERA PRISON ON 24HOUR DUTY THE PRISON'S DIRECTOR SAID 9307260021 930726 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SOUTH KOREA EASED ITS BAN ON SOME JAPANESE IMPORTS IMPOSED 13 YEARS AGO TO PROTECT KOREAN INDUSTRIES SEOUL APPEALED FOR JAPAN TO RECIPROCATE SUCH AS WIDENING ACCESS TO ITS CONSTRUCTION MARKET AND ALLOWING TRANSFERS OF ADVANCED TECHNOLOGY AND KNOWHOW TO KOREA IN 1980 KOREA BARRED IMPORTS OF 258 JAPANESE PRODUCTS IT WILL TRIM THAT LIST GRADUALLY TO 129 ITEMS BY 1997 DESPITE THE BAN AND A CAMPAIGN TO DIVERSIFY IMPORT SOURCES SOUTH KOREA HAS FAILED TO STEM THE FLOW OF OTHER JAPANESE PRODUCTS INTO THE COUNTRY BECAUSE OF KOREAN COMPANIES' DEPENDENCE ON JAPANESE TECHNOLOGY PARTS AND EQUIPMENT THE KOREAN DEFICIT IN TRADE WITH JAPAN TOTALED 79 BILLION LAST YEAR AND 44 BILLION IN THIS YEAR'S FIRST HALF HONG KONG SET UP A COMMITTEE TO OVERSEE 1994 AND 1995 ELECTIONS THE LAST SCHEDULED BEFORE THE BRITISH COLONY REVERTS TO CHINA IN 1997 BRITAIN AND CHINA SINCE OCTOBER HAVE ARGUED ABOUT THE ELECTIONS PART OF GOV CHRIS PATTEN'S PROPOSALS TO MAKE THE HONG KONG ELECTORAL SYSTEM MORE DEMOCRATIC CHINA SAYS THE PLANS AMOUNT TO AN ATTEMPT BY BRITAIN TO EXTEND ITS RULE OVER HONG KONG BEYOND 1997 BRITAIN SAYS HONG KONG NEEDS MORE DEMOCRACY TO MATCH ITS STATUS AS AN ASIAN ECONOMIC CENTER EIGHT ROUNDS OF SINOBRITISH TALKS HAVEN'T RESOLVED THE DISPUTE VIETNAM PREDICTED GROSS NATIONAL PRODUCT WILL INCREASE BETWEEN 8 AND 9 ANNUALLY IN THE NEXT TWO YEARS WHEN GOVERNMENT PLANNERS HOPE TO CREATE AT LEAST 16 MILLION MORE JOBS GNP GREW 73 LAST YEAR WITH THE STATEOWNED SECTOR ACCOUNTING FOR 60 OF THE ECONOMY THE INTERNATIONAL MONETARY FUND SAYS VIETNAM PLANS TO DOUBLE ITS OUTPUT OF GOODS AND SERVICES BY THE YEAR 2000 WHICH WILL REQUIRE REDUCING INFLATION NOW RUNNING AT 15 A YEAR PRIVATIZING INEFFICIENT ENTERPRISES 40 OF WHICH AREN'T PROFITABLE AND GETTING SIGNIFICANT FOREIGN INVESTMENT WORKERS AT HYUNDAI MOTOR CO SOUTH KOREA'S LARGEST AUTO MAKER APPROVED A NEW CONTRACT ENDING A 36DAY DISPUTE THAT CHALLENGED PRESIDENT KIM YOUNG SAM'S NEW GOVERNMENT THE ACCORD PROVIDES FOR A 47 PAY INCREASE WORKERS HAD SOUGHT 165 IT WAS EXPECTED TO EASE TENSIONS AT SIX OTHER FACTORIES INCLUDING THE WORLD'S LARGEST SHIPYARD WHERE 40000 EMPLOYEES WALKED OUT FRIDAY DEFYING A GOVERNMENT CRACKDOWN ON STRIKES AS A THREAT TO RECOVERY FROM A THREEYEAR RECESSION ABOUT 10000 RIOT POLICE WERE DEPLOYED NATIONWIDE FOLLOWING HUNDREDS OF ARRESTS LAST WEEK IN LABOR UNREST CHINA SAID IT HAD ENOUGH CASH TO MAKE SUMMERGRAIN PURCHASES WHICH ARE 86 COMPLETE THE GOVERNMENT HAS BOUGHT AND STORED 142 MILLION TONS OF GRAIN SO FAR MOST PARTS OF THE COUNTRY ALSO HAVE A SECOND LARGER HARVEST IN THE FALL CHINA ASSIGNS FARM HOUSEHOLDS ANNUAL GRAINSALES QUOTAS WHICH MUST BE MET BEFORE THE PEASANTS MAY SELL EXCESS GRAIN AT USUALLY HIGHER OPENMARKET PRICES THIS YEAR CHINA ORDERED PAYMENTS IN CASH RATHER THAN IOUS WHICH IN RECENT YEARS TRIGGERED PROTESTS CASH HAS BEEN SHORT THIS YEAR BECAUSE OF GOVERNMENT OVERSPENDING AND RECKLESS LENDING THE ECONOMIC SLUMP IN JAPAN WHERE MEN DOMINATE IN BUSINESS IS MAKING IT EVEN MORE DIFFICULT FOR FEMALE UNIVERSITY GRADUATES TO START THEIR CAREERS AT BIG COMPANIES A SURVEY OF 2121 LARGE PUBLICLY LISTED CONCERNS BY RECRUIT RESEARCH CO FOUND THAT THE FIRMS WILL HIRE JUST 10 OF FEMALE GRADUATES NEXT SPRING DOWN FROM 20 THIS YEAR OF MALE GRADUATES 25 WILL GET JOBS AT BIG FIRMS DOWN FROM 33 BRITAIN'S GROSS DOMESTIC PRODUCT GREW FOR THE FOURTH QUARTER IN A ROW PROVIDING FURTHER EVIDENCE OF ECONOMIC RECOVERY THE GOVERNMENT AND PRIVATE ECONOMISTS SAID SECONDQUARTER GDP ROSE A PRELIMINARY 05 FROM THE FIRST QUARTER AND 15 FROM A YEAR EARLIER MATCHING ANALYSTS' EXPECTATIONS FOR A BROADBASED NONINFLATIONARY SUSTAINABLE EMERGENCE FROM RECESSION THE LATEST DATA INDICATE ANNUAL GROWTH BETWEEN 2 AND 25 MODERATE BUT RESPECTABLE AMID EUROPE'S ECONOMIC SLUMP THAT EXCEEDS BRITAIN'S MARCH FORECAST OF 1 INFLATIONADJUSTED GROWTH FOR 1993 BRITAIN IDENTIFIED NEW REGIONS ELIGIBLE FOR AID THE FIRST UPDATE SINCE 1984 TO HELP THESE SOCALLED ASSISTED AREAS WHICH HAVE HIGH UNEMPLOYMENT RATES THE GOVERNMENT WILL AWARD INCENTIVE GRANTS TO FOREIGN FIRMS TO SET UP OPERATIONS AND CREATE JOBS ITALIAN TRADE UNIONS AND PRIVATESECTOR EMPLOYER GROUPS SIGNED AN ACCORD FOR A NEW COLLECTIVEBARGAINING SYSTEM FOR LABOR CONTRACTS DESIGNED TO CONTAIN COSTS AND IMPROVE THE ECONOMY ECUADOR SUSPENDED DEBT RENEGOTIATIONS AND PAYMENT OF INTEREST ON ITS 65 BILLION OF DEBT TO 400 BANKS IT HAS TOTAL FOREIGN DEBT OF 123 BILLION VENEZUELA SAID ITS THREEYEAR BOOM THAT PRODUCED ECONOMIC GROWTH AS HIGH AS 10 WILL END THIS YEAR WITH GROSS DOMESTIC PRODUCT RISING NO MORE THAN 2 9307260020 930726 BUSINESS BRIEF FLAMEMASTER CORP INTEREST IN PERFECTDATA CORP LIFTED TO 244 FROM 169 FLAMEMASTER CORP SUN VALLEY CALIF SAID IT INCREASED ITS STAKE IN PERFECTDATA CORP TO 833000 SHARES OR 244 OF TOTAL SHARES OUTSTANDING FROM 575000 SHARES OR 169 FLAMEMASTER WHICH SAID IT PURCHASED THE SHARES FOR INVESTMENT PURPOSES BOUGHT THE SHARES AT PRICES RANGING FROM 120 TO 138 EACH FLAMEMASTER WHICH MAKES SEALANTS ADHESIVES AND COATINGS AND HAS INTERESTS IN PACKAGING AND METAL FABRICATION SAID IT PLANS TO INTRODUCE SEVERAL CLEANING AND MAINTENANCE PRODUCT LINES TO BE MARKETED WORLDWIDE BY PERFECTDATA TO COMMERCIAL INDUSTRIAL AND HOMEUSE MARKETS PERFECTDATA IS BASED IN SIMI VALLEY CALIF 9307260019 930726 ECONOMY REPAIRING MISSISSIPPI LEVEES TO BE COSTLY BUT SYSTEM IS UNLIKELY TO IMPROVE MUCH BY THOMAS M BURTON AND RICHARD GIBSON STAFF REPORTERS OF THE WALL STREET JOURNAL THE FLOODRAVAGED MISSISSIPPI RIVER LEVEE SYSTEM A HODGEPODGE OF BARRIERS RANGING FROM CONCRETE WALLS TO WEEDCOVERED SAND WILL COST TAXPAYERS HUNDREDS OF MILLIONS OF DOLLARS TO REPAIR BUT PROBABLY WON'T BE UPGRADED TO BETTER WITHSTAND FLOODING WHILE CURRENT FEDERAL LAW CALLS FOR THE GOVERNMENT TO PICK UP FROM 80 TO ALL OF THE RECONSTRUCTION TAB ON MANY OF THE LEVEES IT DOESN'T AUTHORIZE ENHANCING EITHER THEIR STRENGTH OR HEIGHT US ARMY CORPS OF ENGINEERS OFFICIALS USE A MILLIONDOLLARSAMILE RULE OF THUMB FOR LEVEE CONSTRUCTION SO REPAIRING DAMAGED PORTIONS OF THE 7100MILE SYSTEM WILL BE COSTLY THE SYSTEM IS A PATCHWORK OF STRUCTURES BUILT BOTH BY THE CORPS OF ENGINEERS AND BY PRIVATE COMPANIES WORKING FOR LOCAL GOVERNMENT DRAINAGE AND LEVEE DISTRICTS THAT REPRESENT FARMERS AND TOWNS THE GOVERNMENT WILL LIKELY PAY ALL RECONSTRUCTION COSTS FOR FEDERALLY BUILT LEVEES AND 80 OF THE OTHERS' COSTS IF THOSE LEVEES MET MINIMAL FEDERAL CONSTRUCTION GUIDELINES YET MANY OF THE PRIVATELY BUILT LEVEES WERE BUILT ONLY TO ENDURE LESSER FLOODS THE CURRENT DELUGE IS A SOCALLED 100YEAR FLOOD MEANING THAT IT SHOULD OCCUR ONLY ONCE IN A CENTURY THE POTENTIAL DAMAGE IMPACT IS UNCLEAR BECAUSE HUNDREDS OF LEVEES ARE STILL SUBMERGED BUT THE CORPS OF ENGINEERS ALREADY COUNTS 1204 BREACHED OR SUBMERGED LEVEES THAT PROBABLY WILL QUALIFY FOR FEDERAL REHABILITATION MONEY MANY LEVEES UNDERWATER ARE LIKELY TO BE BADLY ERODED PRELIMINARY DAMAGE ESTIMATES FROM ONE 47MILE LEVEE DISTRICT IN SOUTHEAST IOWA ALONE REACHED 10 MILLION THE CLINTON ADMINISTRATION HAS ASKED CONGRESS FOR 298 BILLION IN FLOODRELATED DISASTER RELIEF BUT BECAUSE FLOOD DAMAGE IS MOUNTING DAILY AND IS ALREADY ESTIMATED TO EXCEED 10 BILLION THAT AMOUNT IS EXPECTED TO RISE SHARPLY THE CORPS SO FAR HAS ASKED FOR 150 MILLION FOR THE REPAIR OF LEVEES AND OTHER FLOODCONTROL WORKS YOU CAN'T REBUILD THE LEVEE ANY HIGHER THAN IT WAS AT FEDERAL EXPENSE SAYS LOU CHIODINI CHIEF OF PROGRAMS MANAGEMENT IN THE CORPS' ST LOUIS DISTRICT THAT MEANS THAT UNLESS CURRENT REGULATIONS CHANGE THIS VIRTUALLY GUARANTEES THAT THE SYSTEM WON'T BE SIGNIFICANTLY UPGRADED MARAUDING RIVERS HAVE PUNCHED HOLES IN SCORES OF LEVEES IN RECENT DAYS AND THE DAMAGE ISN'T LIKELY TO END SOON DOWNPOURS OVER THE WEEKEND RENEWED FEARS OF SWOLLEN RIVERS ONCE AGAIN BREACHING SODDEN LEVEES AND WREAKING MORE DESTRUCTION ON TOWNS AND CROPLAND HEAVY WEEKEND RAINS SWELLED BLOATED RIVERS AS FAR NORTH AS SISSETON SD FLOOD WATERS FROM THE MISSOURI RIVER SPILLED INTO THE WATER SUPPLY FOR ST JOSEPH MO LEAVING SOME 77000 RESIDENTS WITHOUT WATER DESPITE FRANTIC SANDBAGGING EFFORTS AND THE MISSISSIPPI RIVER BROKE THROUGH A SECTION OF THE SNY ISLAND LEVEE SOUTH OF QUINCY ILL FLOODING 44000 ACRES OF FARMLAND BUT THERE WAS SOME GOOD NEWS AS AUTHORITIES REOPENED THE MISSISSIPPI RIVER TO BARGE TRAFFIC FOR 100 MILES BETWEEN DUBUQUE AND DAVENPORT IOWA BELOW THAT HOWEVER LOCKS REMAINED UNWORKABLE LEVEES IN SOUTHERN ILLINOIS AND MISSOURI ARE EXPECTED TO CONTINUE TO BE SEVERELY TESTED AS THE TURGID MISSISSIPPI ROLLS TOWARD THE GULF OF MEXICO AUTHORITIES PATROLLING LEVEES REPORT THAT SAND BOILS HAVE APPEARED ON SEVERAL BOILS OCCUR WHEN A LEVEE BECOMES SO SATURATED THAT WATER BURSTS OUT THIS WEEK THE FLOOD'S CREST SHOULD BARREL INTO THE MUCH WIDER AND DEEPER MISSISSIPPI BASIN BORDERED BY TENNESSEE AND ARKANSAS OFFICIALS PREDICT FLOODING IN THOSE STATES BUT SAY THAT BECAUSE THE RIVER'S ENERGY WILL DISSIPATE OVER A LARGER AREA DAMAGE SHOULD BE LESS SEVERE THAN UPSTREAM AT MEMPHIS FOR EXAMPLE THE MISSISSIPPI'S CAPACITY IS THREE TIMES THAT AT CAIRO ILL 220 RIVER MILES UPSTREAM AS EXPERTS BEGIN TOTALING LEVEESYSTEM LOSSES SOME OFFICIALS ALSO ARE QUESTIONING WHETHER THE CORPS HAS ADEQUATELY SUPERVISED AND MAINTAINED THE LEVEE SYSTEM SOME CURRENT DAMAGE RELATES TO LACK OF MAINTENANCE SAYS SEN CHARLES GRASSLEY R IOWA MORE'S GOT TO BE DONE IT'S PROTECTING A MAJOR INVESTMENT THE TAXPAYERS HAVE MADE SINCE THE EARLY 1920S YOU CAN SPEND PENNIES NOW AND SAVE DOLLARS LATER HE AND LOCAL DRAINAGEDISTRICT OFFICIALS CITE ARGUMENTS WITH THE CORPS AND EVEN BETWEEN DIFFERENT CORPS OFFICES OVER WHETHER CERTAIN REPAIRS WERE NEEDED FARMERS IN A LEVEE DISTRICT NEAR OAKVILLE IOWA SAY THE MISSISSIPPI ROCKED WITH WAVES FROM PASSING TOW BOATS AND BARGES HAS GNAWED ON THE LEVEE THERE FOR YEARS EVEN BEFORE THE FLOOD ONE HOLE HAD GROWN TO SEVERAL HUNDRED YARDS LONG AND MORE THAN 20 FEET DEEP WE'VE BEEN ON THE CORPS OF ENGINEERS FOR YEARS TRYING TO GET IT FIXED SAYS WAYNE SHIPMAN A TRUSTEE OF THE IOWA RIVERFLINT CREEK LEVEE DISTRICT NO 16 THE CORPS TOLD US WE HAVE NOT BEEN AUTHORIZED TO FIX IT' AN EXASPERATED MR SHIPMAN SAYS WITHOUT FEDERAL ASSISTANCE WHICH LOCAL OFFICIALS SAY ISN'T A SURE THING THE OAKVILLE LEVEE DISTRICT FACES GRIM PROSPECTS ITS ATTORNEY SCOTT POWER OF BURLINGTON IOWA SAYS WE'D HAVE TO SELL THE DISTRICT TO PAY FOR THE COST OF REPAIRS EVEN SO THERE ARE SIGNS THAT FEDERALLY CONSTRUCTED LEVEES HAVE HELD UP BETTER THAN OTHERS THE CORPS OF ENGINEERS SAYS ONLY 12 OF THE LEVEES THAT GAVE WAY OR WERE SUBMERGED WERE BUILT BY THEM WE MAKE THEM BETTER SAYS A SPOKESMAN AT THE CORPS' OMAHA NEB OFFICE WHICH MONITORS LEVEES ALONG THE MISSOURI RIVER BUT OFFICIALS OF LOCAL LEVEE DISTRICTS CONTEND THAT THE CORPS ALSO BUILT SOME OF THE PRIVATELY MAINTAINED BARRIERS THAT HAVE COLLAPSED IN RECENT DAYS AND THE CORPS CERTAINLY WAS RESPONSIBLE FOR INSPECTING MANY OF THEM LEVEE STRENGTH IS LIKELY TO BECOME PART OF A PUBLICPOLICY DEBATE ON HOW MUCH TO SPEND REPAIRING THE SYSTEM DOES IT MAKE MORE SENSE FOR EXAMPLE TO PROTECT AGAINST A 30 OR 50 OR 100YEAR FLOOD MOREOVER SOME ENVIRONMENTALISTS CONTEND THAT THE CORPS AND THE PRIVATE LEVEE DISTRICTS BUILT TOO MANY OF THE STRUCTURES IN THE FIRST PLACE THEY ARGUE THAT THE LEVEES UPSTREAM ARTIFICALLY CONSTRICT RIVERS AND IN A FLOOD INCREASE THEIR DESTRUCTIVE FORCE WHILE HUNDREDS OF LEVEES WILL QUALIFY FOR FEDERAL REBUILDING FUNDS MANY MORE WON'T QUALIFY EITHER BECAUSE THEY FAILED FEDERAL INSPECTIONS OR WEREN'T BUILT IN COMPLIANCE WITH FEDERAL STANDARDS IN THE OMAHA REGION OF THE MISSOURI RIVER FOR EXAMPLE ONLY ABOUT 125 OF 700 LEVEES QUALIFY FOR FEDERAL MONEY A CORPS SPOKESMAN SAYS 9307260018 930726 CORRECTIONS & AMPLIFICATIONS AMERICAN TELEPHONE & TELEGRAPH CO'S COMPUTER UNIT NCR CORP HAD REVENUE OF 181 BILLION IN THE SECOND QUARTER A 34 INCREASE FROM A YEAR EARLIER AN ARTICLE FRIDAY INCORRECTLY STATED THAT REVENUE ROSE 29 TO 875 MILLION THAT FIGURE REPRESENTED NCR'S PRODUCT SALES AND EXCLUDED REVENUE FROM COMPUTER SERVICES AND OTHER ITEMS HILO AUTOMOTIVE INC IS AN AUTOMOTIVE PARTS RETAILER IN FRIDAY'S WHO'S NEWS COLUMN THE COMPANY WAS INCORRECTLY DESCRIBED AS AN OIL AND GAS AND REALESTATE COMPANY 9307260017 930726 STEELMAKERS ARBED USINOR SACILOR AGREE TO LINK DISTRIBUTORS SPECIAL TO THE WALL STREET JOURNAL PARIS STATEOWNED STEELMAKER USINOR SACILOR SA SAID IT HAS AGREED WITH LUXEMBOURG'S ARBED SA TO COMBINE THEIR FRENCH STEELDISTRIBUTION SUBSIDIARIES THE MOVE IS AN EXTENSION OF EXISTING AGREEMENTS BETWEEN THE TWO STEEL GROUPS UNDER WHICH EACH IS BECOMING A SPECIALIST IN CERTAIN PRODUCTS ARBED FOCUSING ON GIRDERS AND SHEET PILINGS WHILE USINOR SPECIALIZES IN WIRE ROD AND RAILS THE TWO SUBSIDIARIES USINOR'S NOZAL SA AND ARBED'S HARDY TORTUAUX WILL BECOME ONE OF EUROPE'S LEADING STEEL DISTRIBUTORS WITH COMBINED ANNUAL SALES OF ABOUT SIX BILLION FRANCS 103 BILLION ON ONE MILLION TONS OF STEEL PRODUCTS THE COMPANIES TOGETHER HAVE 100 INDUSTRIAL SITES IN EUROPE THE ACCORD WILL EMBRACE USINOR'S WHOLLY OWNED MERLIN SUBSIDIARY IN FRANCE AND ITS ASD UNIT IN THE UK AS WELL AS BERAUD SUDREAU A FRENCH STEEL DISTRIBUTOR IN WHICH USINOR HAS A 35 STAKE NOZAL POSTED A LOSS LAST YEAR OF 333 MILLION FRANCS 57 MILLION ON SALES OF 285 BILLION FRANCS WHILE HARDY TORTUAUX HAD A LOSS OF 47 MILLION FRANCS ON SALES OF 239 BILLION FRANCS A SPOKESMAN FOR USINOR SAID FINANCIAL TERMS OF THE AGREEMENT WON'T BE COMPLETED UNTIL THE FALL BUT IT IS EXPECTED THAT USINOR AND ARBED WILL EACH CONTROL ROUGHLY 40 OF THE NEW GROUP WHICH WILL HAVE HARDY TORTUAUX AS ITS CORE AND WILL BE LISTED ON THE PARIS STOCK EXCHANGE ARBED OWNS 85 OF HARDY TORTUAUX AND USINOR OWNS 64 OF NOZAL 9307260016 930726 INTERNATIONAL BRIEF NESTLE SA SALES ROSE 45 IN 1ST HALF BETTER GAIN SEEN IN 2ND HALF SWISS FOOD GIANT NESTLE SA SAID IN ZURICH THAT FIRSTHALF CONSOLIDATED SALES CLIMBED 45 TO 275 BILLION SWISS FRANCS 183 BILLION FROM 263 BILLION FRANCS A YEAR EARLIER THE COMPANY IN A BRIEF STATEMENT ALSO SAID THAT IT EXPECTS SECONDHALF SALES TO INCREASE AT A HIGHER RATE THAN IN THE FIRST HALF AND THAT CONSOLIDATED PROFIT FOR THE WHOLE OF 1993 SHOULD BE SATISFACTORY THE COMPANY DIDN'T PROVIDE PROFIT FIGURES FOR THE FIRST HALF IT SAID IT WOULD PUBLISH FULL EARNINGS DETAILS FOR THE FIRST SIX MONTHS IN EARLY SEPTEMBER NESTLE'S 1992 PROFIT WAS 27 BILLION FRANCS UP FROM 247 BILLION FRANCS THE PREVIOUS YEAR NESTLE SAID SALES IN THE FIRST HALF WERE HELPED BY THE CONSOLIDATION OF THE PERRIER GROUP INTO OVERALL RESULTS AS WELL AS BY PRICE INCREASES IN A NUMBER OF COUNTRIES 9307260015 930726 COMMODITIES OIL TRADERS SEE DISPUTES AMONG ARAB NATIONS UNDERMINING OPEC'S ABILITY TO SUPPORT PRICES BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL RIFTS AMONG ARAB NATIONS ARE SERIOUSLY DIMINISHING OIL TRADERS' ESTIMATION OF OPEC'S ABILITY TO PROP UP OIL PRICES BICKERING BETWEEN SAUDI ARABIA AND IRAN OVER WHICH ONE IS RESPONSIBLE FOR THE RECENT OIL PRICE SLUMP SCUTTLED PLANS FOR A MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES INITIALLY SCHEDULED FOR WEDNESDAY ALTHOUGH OPEC PRESIDENT JEAN PING SAID OVER THE WEEKEND THAT AN EMERGENCY MEETING TO CONSIDER THE RECENT SHARP DECLINE IN OIL PRICES WOULD BE HELD LATER MARKET PARTICIPANTS DOUBT THE GATHERING WILL TAKE PLACE IN THE FACE OF SAUDI RESISTANCE OIL FOR SEPTEMBER DELIVERY SETTLED AT 1775 A BARREL FRIDAY UP 12 CENTS FROM THURSDAY UNLESS SOMETHING NEW DEVELOPS INDUSTRY EXPERTS BELIEVE PRICES COULD REMAIN IN A RANGE OF 16 TO 18 A BARREL UNTIL COLD WEATHER INDUCES A SEASONAL PICKUP IN DEMAND DURING THE FOURTH QUARTER OPEC MEMBERS HAVE GLUTTED THE MARKET BY PUMPING ABOUT ONE MILLION BARRELS A DAY MORE THAN THEIR COMBINED QUOTA CEILING THE SAUDIS WANT TO TALK ABOUT THIS PROBLEM INFORMALLY THROUGH PRIVATE CONSULTATIONS AND PHONE CONVERSATIONS RATHER THAN AT AN OFFICIAL GATHERING OF THE MINISTERS BUT GHOLAMREZA AQAZADEH THE IRANIAN OIL MINISTER HAS SAID THAT ALL OPEC MEMBERS SHOULD GATHER TO CONSIDER THE STATE OF THE MARKET THE SAUDIIRANIAN SPAT ISN'T OPEC'S ONLY POLITICAL PROBLEM STILL OVERHANGING THE MARKET IS UNCERTAINTY OVER WHETHER IRAQ AND THE UNITED NATIONS MIGHT COME TO SOME AGREEMENT THAT WOULD ALLOW IRAQ TO SELL 16 BILLION OF OIL SINCE IT INVADED KUWAIT IN 1990 IRAQ HAS BEEN PREVENTED BY AN EMBARGO FROM EXPORTING ANY OF ITS OIL THIS ONETIME SALE WOULD BE ALLOWED FOR HUMANITARIAN PURPOSES ONLY ALTHOUGH UN AND IRAQI NEGOTIATORS HAVEN'T SCHEDULED ANY FORMAL MEETINGS FOR THE NEAR FUTURE A PERSON FAMILIAR WITH THE TALKS SAID THAT THERE HAS BEEN ENORMOUS PROGRESS IN BEHINDTHESCENES CONSULTATIONS CONCERNING TECHNICAL ISSUES SUCH AS HOW THE OIL WOULD MOVE OUT OF IRAQ AND HOW MUCH OF THE SALE PROCEEDS WOULD GO TO THE KURDS DESPITE THE PROGRESS IT REMAINS UNCLEAR WHETHER THE US AS PART OF THE UN SECURITY COUNCIL WILL ULTIMATELY APPROVE THE SALE WITH SADDAM HUSSEIN STILL HOLDING THE REINS OF GOVERNMENT IN IRAQ ACCORDING TO BERNIE PICCHI OIL ANALYST FOR KIDDER PEABODY THERE IS SOME SENTIMENT IN WASHINGTON THAT IT WILL BE A COLD DAY IN HELL BEFORE SADDAM HUSSEIN EXPORTS OIL AND THAT THIS POINT RATHER THAN ANY TECHNICAL BREAKTHROUGHS IS REALLY THE SUBSTANTIVE ISSUE IF THE IRAQI OIL SALE COMES TO PASS PRICES ARE LIKELY TO TUMBLE POSSIBLY BELOW THE CURRENT 16ABARREL FLOOR ALTHOUGH THE SALE WOULD PROBABLY COME IN THE FOURTH QUARTER WHEN IT WOULD BE MOST READILY ABSORBED INTO THE MARKET THE IRAQIS WOULD HAVE TO DISCOUNT THEIR PRICES HEAVILY AND MR GOLDSTEIN POINTS OUT UNLESS THE US LIFTS ITS BAN ON IRAQI IMPORTS INTO THE US THERE WOULD BE FEWER MARKETS TO TAKE THAT OIL THAT WOULD ONLY FUEL THE NEED FOR DEEP DISCOUNTS AND FORCE OTHER PRODUCERS FIGHTING TO RETAIN MARKET SHARE IN FACE OF THE SALES TO REDUCE THEIR PRICES SHARPLY AS WELL LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK TRADERS WILL BE WATCHING FOR FURTHER GAINS IN COPPER FUTURES PRICES THIS WEEK FOLLOWING THE STRONG FINISH FRIDAY ON THE ACTIVE SEPTEMBER CONTRACT COPPER FOR SEPTEMBER DELIVERY SETTLED AT 8565 CENTS UP 110 CENTS A POUND ON NEW YORK'S COMMODITY EXCHANGE SUPPLY AND DEMAND BALANCES THROUGH THE FIRST SEVEN MONTHS OF 1993 DO NOT UNDERSCORE A VERY HEALTHY MARKET SAID FRED DEMLER A METALS ECONOMIST WITH PAINEWEBBER BUT THE EXPECTATIONS ARE FOR A TURNAROUND BY 1994 AND SOME OF THE BUYING WE'RE SEEING NOW IS FOR CALENDAR 1994 9307260014 930726 BUSINESS BRIEF THAMES WATER PLC BRITISH COMPANY IS TAKING ROLE IN TURKISH DAM PROJECT THAMES WATER PLC OF BRITAIN SAID IT HAS JOINED TWO TURKISH CONTRACTORS IN A 700 MILLION PROJECT TO COMPLETE TURKEY'S YUVACIK DAM AND BUILD A MAJOR WATERTREATMENT PLANT THAMES VALUES ITS PARTICIPATION IN THE PROJECT AT 290 MILLION GAMA ENDUSTRI TESISLERI IMALAT VE MONTAJ AS AND GURIS INSAAT VE MUHENDISLIK AS BOTH OF TURKEY ARE THAMES'S PARTNERS IN THE PROJECT THAMES WILL PARTICIPATE IN THE PROJECT THROUGH ITS SUBSIDIARY PWT PROJECTS LTD PWT WILL OPERATE AND MANAGE THE SYSTEM FOR 15 YEARS AFTER CONSTRUCTION WHICH IT ESTIMATES WILL TAKE ABOUT THREE YEARS THE PROJECT WILL BE FINANCED BY 15 EQUITY AND 85 BORROWINGS 9307260013 930726 MARKETING BUCHMAN SUCCEEDS BY HEEDING SHOPPERS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BY EVERY MEASURE DANA BUCHMAN IS A SEVENTH AVENUE FASHION HOUSE THAT IS CUT FROM A DIFFERENT CLOTH AT BUCHMAN THERE IS NO STAR DESIGNER WHOSE HITORMISS CREATIVITY DICTATES WHAT WOMEN WILL WEAR EACH SEASON IN FACT IT'S JUST THE OPPOSITE THE COMPANY TRACKS RETAIL SELLING TRENDS FROM ITS MAJOR ACCOUNTS AND CONSIDERS SUGGESTIONS IT GETS FROM CUSTOMERS TO DETERMINE WHAT STYLES AND COLORS WOMEN ARE MOST LIKELY TO BUY AND THEN BUCHMAN'S TWO DESIGNERS START CREATING THE CLOTHES THE SIXYEAROLD DIVISION OF LIZ CLAIBORNE INC ALSO SHUNS THE GLARE OF THE FASHION PRESS AVOIDING THE BREATHLESS HYPE THAT CAN DRIVE DESIGNERS INTO THE SPOTLIGHT AND INCREASINGLY RIGHT OUT OF BUSINESS AT A TIME WHEN MANY HIGHFASHION NAMES ARE STRUGGLING TO STAY AFLOAT BUCHMAN HAS BEEN EXPERIENCING STEADY GROWTH ITS 1992 SALES OF 735 MILLION WERE MORE THAN DOUBLE SALES IN 1991 INDEED BUCHMAN IS ONE OF THE GROWTH BUSINESSES THAT CLAIBORNE IS COUNTING ON TO HELP PICK UP THE SLACK FROM CLAIBORNE'S MATURING CORE SPORTSWEAR BUSINESS WHICH HAS SUFFERED SLOWER SALES IN RECENT MONTHS CLAIBORNE RECENTLY SAID LOWERTHANEXPECTED RETAIL BOOKINGS OF ITS FALL SPORTSWEAR WILL CAUSE A 30 DROP IN 1993'S PERSHARE EARNINGS THE LABEL SAYS DANA BUCHMAN BUT SHE IS FAR FROM ALONE AT THE HELM THE COLLECTION IS CREATED BY DANA BUCHMAN 41 YEARS OLD AND KAREN HARMAN 43 WHO AS CODESIGNERS WORK ALONGSIDE THE COMPANY'S PRESIDENT GAIL COOK 37 THE TRIO DEVELOP THE COLLECTIONS RELYING HEAVILY ON WEEKLY REPORTS FROM STORES FILED BY THE COMPANY'S SEVEN MARKETING CONSULTANTS AND THE DESIGNERS HEAR DIRECTLY FROM THEIR CUSTOMERS AT A RECENT INSTORE EVENT IN CHICAGO MS BUCHMAN WAS ASKED TWICE ABOUT A DISCONTINUED PANTS STYLE THAT MEANS THAT THERE ARE MORE WOMEN OUT THERE WHO WANT US TO BRING BACK THOSE PANTS SO WE'RE GOING TO LOOK INTO IT THE DESIGNER SAYS AS A RESULT THE BUCHMAN CLOTHES THAT EVENTUALLY MAKE IT TO THE STORES APPEAL TO A WIDE VARIETY OF PROFESSIONAL WOMEN AROUND THE COUNTRY AT PRICES THAT THEY ARE LIKELY TO PAY DANA BUCHMAN IS ONE OF THE MOST RESPONSIBLE DESIGN FIRMS WHEN IT COMES TO RETAILERS DECLARES MARK LOWENBERG A MERCHANDISING PRESIDENT AT RH MACY & CO'S 58 STORES IN THE EAST DANA KAREN AND GAIL COOK ARE SO ANXIOUS TO TALK TO CUSTOMERS TO FIND OUT WHAT THEY LIKE MEANWHILE ON SEVENTH AVENUE MANY DESIGNERS CONTINUE TO BUILD THEIR COMPANIES AROUND THEIR SEASONAL FASHION SHOWS BUT BUCHMAN CONSIDERS FASHION SHOWS WHICH RUN BETWEEN 50000 TO 100000 A COSTLY DISTRACTION BUCHMAN OFFICIALS BELIEVE THAT FASHION SHOWS INSPIRE DESIGNERS TO CHASE PUBLICITY INSTEAD OF THE MARKETPLACE BY CREATING EYEPOPPING GARMENTS MOST OF WHICH ARE NEVER PRODUCED WE'D RATHER PUT OUR ENERGIES TOWARD MAKING CLOTHES THAT SELL SAYS MS BUCHMAN THE COMPANY'S LOWPROFILE POSTURE MEANS THAT MS BUCHMAN HAS YET TO BECOME A CELEBRITY BUT THAT HASN'T KEPT SOME OF THE NATION'S MOST VISIBLE WOMEN SUCH AS SEN DIANNE FEINSTEIN AND THE TODAY SHOW'S KATIE COURIC FROM DISCOVERING BUCHMAN FASHIONS ON THEIR OWN AND MS BUCHMAN WAS RECENTLY SUMMONED TO PROVIDE CLOTHES FOR TWO FANS IN WASHINGTON HILLARY RODHAM CLINTON AND TIPPER GORE TODAY THERE'S A REDEFINITION OF WHAT IT MEANS TO BE WELLDRESSED SAYS JUDITH LANGER A NEW YORK RETAIL MARKETING CONSULTANT A LOT OF WOMEN DON'T FEEL THE NEED FOR THE BIGDEAL EXPENSIVE WARDROBE TO MAKE A BIG IMPRESSION THE DANA BUCHMAN BRAND IS KNOWN FOR ITS CLASSIC FEMININE STYLING AND RANGE OF COLORS PRICED FROM AN AVERAGE 150 FOR A SILK BLOUSE TO ABOUT 350 FOR A WOOL BLAZER BUCHMAN IS A TOP SELLER IN WHAT IS KNOWN AS THE BRIDGE DEPARTMENTAPPAREL MARKETED TO WELLTODO WORKING WOMEN THAT IS PRICED A FEW NOTCHES BELOW HIGHEND DESIGNER BRANDS IN THE PAST THREE YEARS THE BRIDGE CATEGORY HAS BEEN GRABBING MORE MARKET SHARE DISPLACING THE DESIGNER COLLECTIONS THAT STORES ARE STEADILY SCALING BACK DURING THE 1980S HIGHEND DESIGNER COLLECTIONS FROM NEW YORK PARIS AND MILAN GAVE RETAILERS A HIGHFASHION IMAGE BUT MANY OF THOSE EXPENSIVE COLLECTIONS ENDED UP ON MARKDOWN RACKS BUT NOW THE RECESSION HAS CAUSED EVEN WELLTODO WOMEN TO BUY FEWER CLOTHES ACCORDING TO A ROPER ORGANIZATION POLL OF EXECUTIVE AND PROFESSIONAL WOMEN THE TARGET CUSTOMERS FOR TAILORED HIGHQUALITY CLOTHES 70 BOUGHT CLOTHES EACH MONTH IN 1992 DOWN FROM A HIGH OF 77 IN 1988 AND IN THE PAST FOUR YEARS BRIDGEDEPARTMENT BRANDS SUCH AS ELLEN TRACY DKNY ANNE KLEIN II AND ADRIENNE VITTADINI HAVE SUPPLANTED HIGHERPRICED DESIGNER LABELS AT CHAINS SUCH AS LORD & TAYLOR NORDSTROM AND BURDINES AT SAKS FIFTH AVENUE FOR EXAMPLE BRIDGE GOODS ARE IN ALL 49 STORES WHILE HIGHEND EUROPEAN DESIGNER WEAR IS SOLD IN ONLY ABOUT FIVE LOCATIONS DOWN FROM 10 STORES A FEW YEARS AGO PROFITS ARE A KEY FACTOR SAKS SAYS THAT WITH A TOPSELLING BRIDGE COLLECTION 65 TO 70 OF THE MERCHANDISE SELLS AT FULL PRICE BY CONTRAST AT THE HIGHEND TO GET 50 SOLD AT FULL PRICE IS CONSIDERED VERY GOOD SAYS ANNE KEENES A SAKS FIFTH AVENUE SENIOR VICE PRESIDENT RESPONDING TO THE MARKET HAS FORCED MS BUCHMAN TO RETREAT FROM SOME OF HER FAVORITE IDEAS FOR EXAMPLE WHEN SHE AND MS HARMAN DECIDED TO UPDATE A JEWELNECK BLOUSE WITH A LOWER NECKLINE AND MORE TAPERED FIT EARLY REPORTS FROM RETAILERS VIA SHOPPERS CONFIRMED IT WAS A BAD IDEA WE STOPPED PRODUCTION AND CHANGED THE FIT ON AS MANY BLOUSES AS WE COULD SAYS MS BUCHMAN MOST DESIGNERS WOULDN'T BE INCLINED TO RESPOND TO A FEW CONSUMER RUMBLINGS NOR WOULD MOST SMALL FASHION COMPANIES BE EQUIPPED TO PINPOINT RETAIL TRENDS EARLY ENOUGH TO MAKE LASTMINUTE CHANGES PRICES ARE ALSO DETERMINED BY WHAT THE MARKET WILL BEAR BUCHMAN'S POLICY IS TO PRICE EACH ITEM CONSIDERING WHAT A TYPICAL CUSTOMER WOULD PAY FOR IT WITH AN OBJECTIVE OF ALSO UNDERCUTTING ITS COMPETITORS BY A FEW DOLLARS AND TO GIVE THE CUSTOMER A HIGH PERCEIVED VALUE BUCHMAN ATTENDS TO DETAILS FOR EXAMPLE TO KEEP BLOUSES FROM GAPING OPEN THREE HIDDEN BUTTONS ARE SEWN INTO DRAPED NECKLINES DETAILS ASIDE THE BACKING OF THE CLAIBORNE ORGANIZATION HAS BEEN VITAL TO DANA BUCHMAN'S GROWTH MINDFUL OF CLAIBORNE'S SUCCESSFUL TRACK RECORD RETAILERS WERE MORE THAN ORDINARILY PATIENT AFTER BUCHMAN'S FIRST KNITWEAR COLLECTION IN 1987 BOMBED WITH CUSTOMERS THE BUCHMAN DIVISION ALSO TAKES FULL ADVANTAGE OF CLAIBORNE'S OVERSEAS FACTORIES FABRIC SUPPLIERS AND COMPUTER SYSTEMS BUCHMAN'S POPULARITY HAS LED TO EXPANSION INTO PETITE SIZES NEXT YEAR THE COMPANY WILL ADD LARGE SIZES AND SINCE THE BUCHMAN LABEL SEEMS TO HAVE CAUGHT ON WITH THE BELTWAY CROWD THE COMPANY IS TARGETING SOME FASHION ROLE MODELS ON CAPITOL HILL AFTER THE ELECTION 40 NEWCOMERS TO CONGRESS RECEIVED A CONGRATULATORY GIFT A DANA BUCHMAN TUNIC BLOUSE 9307260012 930726 BOND GROUP SEEKS MANDATED DISCLOSURE OF MUNILINKED POLITICAL CONTRIBUTIONS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON IN AN OPENING SHOT OF A POTENTIALLY MAJOR CLASH BETWEEN MUNICIPAL BOND UNDERWRITERS AND THEIR STATE AND LOCAL GOVERNMENT CLIENTS A BOND TRADE GROUP URGED THE SECURITIES AND EXCHANGE COMMISSION TO MANDATE DISCLOSURE OF MUNILINKED POLITICAL CONTRIBUTIONS THE PUBLIC SECURITIES ASSOCIATION WHOSE MEMBERS INCLUDE MUNICIPAL BOND UNDERWRITERS CALLED ON THE SEC TO REQUIRE PUBLIC OFFICIALS WHO ISSUE THE BONDS TO DISCLOSE SUCH CONTRIBUTIONS FROM UNDERWRITERS FINANCIAL ADVISERS BOND LAWYERS AND OTHERS IN ADDITION THE GROUP ASKED THE SEC TO REQUIRE ISSUERS OF MUNICIPAL DEBT TO DISCLOSE INFORMATION MATERIAL TO THE PERFORMANCE OF THEIR SECURITIES OUTSTANDING IN THE SECONDARY MARKET MANY MARKET PARTICIPANTS HAVE COMPLAINED FOR YEARS ABOUT INADEQUATE SECONDARY MARKET DISCLOSURE THE BOND TRADE GROUP SAID SEC ACTION IN THESE AREAS IS NECESSARY TO PROTECT THE INTEGRITY OF THE MARKET AND SAFEGUARD THE INTERESTS OF INVESTORS STATE AND LOCAL ISSUERS OF MUNICIPAL BONDS ARE EXEMPT FROM THE REGISTRATION AND OTHER DISCLOSURE REQUIREMENTS OF THE FEDERAL SECURITIES LAWS BUT ARE SUBJECT TO THE ANTIFRAUD PROVISIONS OF THOSE LAWS DEALERS WHO ARE REGULATED HAVE BEEN CHAFING AT SHOULDERING DUTIES THEY BELIEVE SHOULD FALL TO ISSUERS THE GROUP SAID IF NECESSARY IT WOULD SUPPORT CONGRESSIONAL ACTION TO PERMIT SEC RULEMAKING THE POSITION IS A MAJOR STEP FOR A GROUP THAT LONG HAS FAVORED A HANDSOFF REGULATORY APPROACH TO THE MUNI MARKET STATE AND LOCAL GROUPS CONTINUE TO INSIST THAT CURRENT REGULATORY ARRANGEMENTS ARE ADEQUATE AND THAT POLITICAL CONTRIBUTION AND SECONDARY MARKET DISCLOSURE QUESTIONS ARE BEST HANDLED AT THE STATE AND LOCAL LEVEL HEATHER RUTH THE GROUP'S PRESIDENT SAID BOTH ISSUES AFFECT PUBLIC AND INVESTOR CONFIDENCE IN THE INTEGRITY OF THE MARKET IN BOTH AREAS SHE SAID THE MUNICIPAL BOND ISSUER IS ULTIMATELY THE BEST AND ONLY COMPLETE SOURCE OF ALL RELEVANT INFORMATION IN A STATEMENT THE GROUP SAID IT RELUCTANTLY HAS CONCLUDED THAT VOLUNTARY DISCLOSURE EFFORTS AND STATE LAWS ON POLITICAL CONTRIBUTIONS AND CONFLICTS OF INTEREST WILL NOT BE SUFFICIENT TO ENSURE PUBLIC CONFIDENCE IN THE MARKET AND PROTECT THE INTERESTS OF INDIVIDUAL INVESTORS PSA INDICATED IT WOULD SUPPORT ACTION BY THE MUNICIPAL SECURITIES RULEMAKING BOARD TO REQUIRE UNDERWRITERS TO DISCLOSE POLITICAL CONTRIBUTIONS BUT SAID IT PREFERS A MORE COMPREHENSIVE APPROACH WHERE THE SEC WOULD IMPOSE THE DISCLOSURE REQUIREMENT ON RECIPIENTS OF CONTRIBUTIONS THE GROUP DIDN'T COMMENT ON A PROPOSAL EXPECTED TO BE CONSIDERED SOON BY THE MSRB TO BAR UNDERWRITERS FROM MAKING POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS WHOSE BONDS THEY UNDERWRITE INDUSTRY OFFICIALS SAID THE BOND GROUP WAS SPLIT ON THE BAN QUESTION MUNI DEALERS ARE SUBJECT TO RULES PROMULGATED BY THE MSRB A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT THE 1975 LAW CREATING THE MSRB INCLUDED THE SOCALLED TOWER AMENDMENT WHICH BARS THE SEC AND MSRB FROM REQUIRING ISSUERS TO FILE DISCLOSURE STATEMENTS BEFORE SELLING BONDS AND BARS THE MSRB FROM REQUIRING ISSUERS TO FILE DISCLOSURE STATEMENTS AFTER BONDS HAVE BEEN SOLD GROUPS REPRESENTING MAYORS COUNTY OFFICIALS AND STATE AND LOCAL FINANCE OFFICERS HOWEVER QUESTION THE NEED FOR FEDERAL INVOLVEMENT IN THE REGULATION OF POLITICAL CONTRIBUTIONS THIS IS AN AREA BEST REGULATED AT THE STATE AND LOCAL LEVELS OF GOVERNMENT THE GROUPS SAID IN A RECENT LETTER TO THE SEC MSRB AND NATIONAL ASSOCIATION OF SECURITIES DEALERS THAT ALSO STRONGLY DEFENDED THE TOWER AMENDMENT THE SECURITIES REGULATORS WERE ASKED BY REPS JOHN DINGELL D MICH AND EDWARD MARKEY D MASS KEY LAWMAKERS IN THE SECURITIES AREA TO ASSESS THE MUNI MARKET AND REPORT THEIR FINDINGS LATER THIS SUMMER THE CONGRESSIONAL INQUIRY SPARKED BY A FEDERAL PROBE INTO SUSPECTED ILLEGAL PAYMENTS IN CONNECTION WITH A 29 BILLION NEW JERSEY TURNPIKE BOND ISSUE LED THE SEC TO SEEK VOLUNTARY INFORMATION FROM SOME 70 BOND UNDERWRITING FIRMS ON THEIR POLITICAL CONTRIBUTIONS IN ADDITION HOUSE BANKING CHAIRMAN HENRY GONZALEZ D TEXAS AND REP JIM LEACH R IOWA THE RANKING GOP MEMBER OF THAT PANEL HAVE OFFERED A BILL TO REQUIRE DISCLOSURE OF POLITICAL CONTRIBUTIONS AND TO REPEAL THE TOWER AMENDMENT 9307260011 930726 EXXON MOBIL PROFITS JUMPED IN 2ND QUARTER RALLY IN NATURALGAS PRICES AND LOWER COSTS AIDED TOP US OIL COMPANIES BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL EXXON CORP AND MOBIL CORP THE NATION'S TWO BIGGEST OIL COMPANIES POSTED SHARP INCREASES IN SECONDQUARTER NET INCOME BECAUSE OF RALLYING US NATURALGAS PRICES A REBOUND IN GASOLINE REFINING AND SEVERE COSTCUTTING THE GAINS FOLLOWED SIZABLE INCREASES REPORTED BY OTHER LARGE OIL COMPANIES INCLUDING TEXACO INC AND AMOCO CORP AND CAME IN THE FACE OF LOWER OIL PRICES AND WEAK ECONOMIES IN THE US AND EUROPE IN ADDITION SLUGGISH DEMAND AND OVERCAPACITY KEPT PETROCHEMICAL RESULTS AT DEPRESSED LEVELS EXXON BASED IN IRVING TEXAS SAID NET INCOME SURGED 33 TO 124 BILLION OR 98 CENTS A SHARE FROM 930 MILLION OR 73 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED 210 MILLION OF GAINS RELATED TO ASSET SALES AND TAX CREDITS REVENUE EDGED UP 06 TO 2793 BILLION FROM 278 BILLION AT MOBIL BASED IN FAIRFAX VA PROFIT MORE THAN DOUBLED TO 579 MILLION OR 141 A SHARE FROM 255 MILLION OR 60 CENTS A SHARE THE LATEST QUARTER INCLUDED GAINS OF 60 MILLION RELATED TO OVERSEAS TAX ISSUES REVENUE ROSE 66 TO 1619 BILLION FROM 1519 BILLION WALL STREET ANALYSTS GENERALLY UNDERESTIMATED SECONDQUARTER RESULTS FOR THE TWO COMPANIES AND SEVERAL OTHERS THAT HAVE REPORTED EARNINGS AS A RESULT EXXON STOCK ROSE 1 TO 65125 AND MOBIL SHARES ADVANCED 125 TO 71 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY EXXON CREDITED LOWER OPERATING EXPENSES FOR MORE THAN 200 MILLION OF THE QUARTER'S EARNINGS IMPROVEMENT MUCH OF THE COSTCUTTING CAME FROM RESTRUCTURING OF OPERATIONS IN THE US AND CANADA EXXON BENEFITED FROM HIGHER NATURALGAS PRICES IN THE US OVERSEAS NATURALGAS SALES DECLINED BECAUSE OF WARM WEATHER IN EUROPE CRUDE OIL PRICES WHICH ARE MORE UNIFORM AROUND THE WORLD WERE ABOUT 1 A BARREL LOWER IN THE QUARTER COMPARED WITH A YEAR EARLIER AND CURBED RESULTS THE BIG GAIN CAME FROM A REBOUND IN GASOLINE REFINING AND MARKETING IN THE US AND ABROAD LOWER PRICES OF OIL THE FEEDSTOCK FOR MAKING PETROLEUM PRODUCTS BOOSTED MARGINS AS DID MODERATE INCREASES IN DEMAND IN EUROPE AND THE FAR EAST EXXON SAID THE COMPANY'S REFINING AND MARKETING OPERATING PROFIT OF 333 MILLION OUTSIDE THE US WAS NEARLY THREE TIMES HIGHER THAN THE 113 MILLION EXXON EARNED DOMESTICALLY EXXON SAID THAT CHEMICAL EARNINGS FELL 28 BECAUSE OF LOWER SALES VOLUMES AND MARGINS CAUSED BY WEAK DEMAND AND EXCESS CAPACITY IN THE QUARTER EXXON BOOSTED SPENDING ON EXPLORATION DEVELOPMENT AND OTHER PROJECTS BY 2 TO 214 BILLION MOBIL ALSO CREDITED HIGHER NATURALGAS PRICES FOR ITS EARNINGS IMPROVEMENT NOTING THAT IT SOLD NATURAL GAS FOR AN AVERAGE OF 236 A THOUSAND CUBIC FEET IN THE QUARTER 48 HIGHER THAN A YEAR EARLIER OVERSEAS GAS PRICES WERE ONLY SLIGHTLY HIGHER BUT VOLUMES ROSE REFLECTING EXPANSIONS IN THE NORTH SEA MOBIL SAID THE COMPANY SAID OPERATING EXPENSES FOR ITS REFINING AND MARKETING OPERATIONS IN THE US WERE 10 BELOW LAST YEAR'S AIDING A SIZABLE TURNAROUND OPERATING PROFIT OF 61 MILLION CONTRASTED WITH A LOSS OF 45 MILLION A YEAR EARLIER INTERNATIONAL PROFIT ROSE SHARPLY MOBIL SAID REFLECTING HIGHER SALES VOLUMES AND MARGINS AND IMPROVED REFINERY PERFORMANCES IN AUSTRALIA SINGAPORE JAPAN AND OTHER AREAS IN THE PACIFIC RIM EUROPEAN RESULTS THOUGH IMPROVED WERE STILL DISAPPOINTING THE COMPANY SAID MOBIL'S PETROCHEMICAL EARNINGS SLID BECAUSE OF CONTINUED OVERSUPPLY AND SLUGGISH DEMAND FOR MANY OF ITS PRODUCTS UNLIKE EXXON MOBIL SHARPLY REDUCED ITS CAPITAL SPENDING IN THE QUARTER TO 989 MILLION FROM 123 BILLION 9307260009 930726 INTERNATIONAL MAJOR'S WIN FOR MAASTRICHT APPEARS MIXED BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ALTHOUGH PRIME MINISTER JOHN MAJOR FINALLY MANAGED TO GET PARLIAMENTARY APPROVAL FOR THE MAASTRICHT TREATY ON EUROPEAN UNITY THE VICTORY MAY HAVE BEEN PYRRHIC WHILE HE WON A VOTE ON MAASTRICHT FRIDAY AFTER SUFFERING AN EMBARRASSING DEFEAT ON THE TREATY THE NIGHT BEFORE THE FACT THAT HE HAD TO TIE IT TO A VOTE OF CONFIDENCE IN THE CONSERVATIVE GOVERNMENT UNDERSCORED HIS WEAKENED AUTHORITY AND DECLINING POPULARITY HIS POSITION IS GREATLY WEAKENED SAYS VERNON BOGDANOR AN OXFORD UNIVERSITY SPECIALIST IN GOVERNMENT ROBERT WORCESTER CHAIRMAN OF MORI A POLLING AND MARKET RESEARCH AGENCY ADDS THAT THE EVENTS OF LAST WEEK HAVE LEFT MR MAJOR AND HIS PARTY IN A SHAMBLES BECAUSE MR MAJOR'S STAUNCHEST FOES IN THE BATTLE OVER MAASTRICHT BELONGED TO HIS OWN PARTY HIS VICTORY IS LESS A CAUSE FOR CELEBRATION THAN FOR CONCERN OVER PARTY UNITY AFTER MORE THAN A YEAR OF WRANGLING ON THE TREATY THE ANTIMAASTRICHT TORY REBELS WHO DESERTED HIM ON THURSDAY'S VOTE WERE FORCED BACK INTO THE PARTY FOLD ON THE VOTE OF CONFIDENCE AND THAT WAS ONLY BECAUSE THEY FEARED A LOSS WOULD RESULT IN A GENERAL ELECTION AND AN END TO 14 YEARS OF CONSERVATIVE PARTY RULE IT WON'T BE FORGOTTEN OR FORGIVEN THAT HE COULD ONLY GET A CENTRAL POLICY THROUGH BY THREATENING HIS OWN PARTY SAYS MR BOGDANOR TO BE SURE OF THE 339 MPS WHO SUPPORTED MR MAJOR'S VOTE OF CONFIDENCE MOTION WHICH WON BY 40 VOTES MANY ACTUALLY HAVE LITTLE FAITH IN THE PRIME MINISTER APPARENTLY THEY WERE ACTING TO PROTECT THEIR OWN JOBS OF 55 CONSERVATIVES SURVEYED OVER THE WEEKEND BY THE SUNDAY TIMES ONLY ABOUT HALF BELIEVE MR MAJOR WILL LEAD THE PARTY AT THE NEXT GENERAL ELECTION AND MANY BELIEVE THAT REGARDLESS OF WHEN THE NEXT ELECTION OCCURS THE PARTY WILL DUMP HIM WITHIN A YEAR TO HEAR IT FROM BRITISH NEWSPAPER EDITORIALISTS THE END SHOULD COME SOONER THAN THAT OVER THE WEEKEND VIRTUALLY EVERY NEWSPAPER IN LONDON ATTACKED MR MAJOR'S PERFORMANCE WITH HEADLINES SUCH AS THE OBSERVER'S THIS GOVERNMENT IS INCOMPETENT STILL MR MAJOR IS EXPECTED TO SURVIVE IN THE NEAR TERM BECAUSE OF THE LACK OF ANY CLEAR SUCCESSOR IN THE PARTY AN IMPRESSIVE ORATORY PERFORMANCE IN PARLIAMENT FRIDAY HOWEVER HAS SUDDENLY MADE FOREIGN SECRETARY DOUGLAS HURD A MUCHDISCUSSED POSSIBILITY AS A SUCCESSOR SHOULD MR MAJOR'S RATINGS CONTINUE TO WANE THE PRIME MINISTER'S SUPPORTERS ON THE OTHER HAND ARE COUNTING ON THE CONTINUING ECONOMIC RECOVERY IN BRITAIN TO HELP HIM REGAIN SUPPORT IN COMING MONTHS THE CURRENT DIVISIVENESS AMONG TORIES COMES AT A TIME WHEN THE PARTY IS DOWN IN THE POLLS AND FACING AN IMPORTANT BYELECTION THIS THURSDAY VOTERS IN THE RESORT AREA OF CHRISTCHURCH WILL GO TO THE POLLS TO REPLACE A RECENTLY DECEASED TORY MP WHO IN THE MOST RECENT ELECTION TOOK THIS CONSTITUENCY BY 23015 VOTES EVEN BEFORE THE EVENTS OF LAST WEEK POLLS SHOWED THAT CHRISTCHURCH VOTERS' IMPATIENCE WITH BRITAIN'S LONG RECESSION AND OUTRAGE OVER MEASURES SUCH AS A NEW TAX ON FUEL WOULD BOOT THE TORIES OUT OF OFFICE AND USHER IN A LIBERAL DEMOCRAT POLLS OVER THE WEEKEND SHOWED THE GAP WIDENING AND NOW OBSERVERS ARE PREDICTING AN OUTRIGHT EMBARRASSMENT FOR THE TORIES THE SWING IN THE CHRISTCHURCH VOTE WILL BREAK ALL THE RECORDS SAYS MR WORCESTER MR MAJOR'S VICTORY FRIDAY CAME AT THE COST OF A PROMISE TO FORGE SOME SORT OF ALLIANCE WITH THE ULSTER UNIONISTS OF NORTHERN IRELAND A GROUP DISILLUSIONED WITH THE LABOR PARTY BECAUSE OF THE PARTY'S WILLINGNESS TO DISCUSS CONCESSIONS WITH IRISH NATIONALISTS THE MOVE IS RISKY FOR MR MAJOR BECAUSE ANY ALLIANCE WITH THE UNIONISTS IS BOUND TO ALIENATE IRISH NATIONALISTS ONLY ONE OBSTACLE REMAINS TO BRITISH RATIFICATION OF MAASTRICHT A LAWSUIT CHARGING THAT PARLIAMENT'S APPROVAL OF THE TREATY WAS ILLEGAL BECAUSE IT CEDED TOO MUCH POWER TO BRUSSELS HEARINGS ON THAT SUIT WHICH ISN'T EXPECTED TO SUCCEED ARE SCHEDULED TO BEGIN TODAY FINAL BRITISH APPROVAL OF MAASTRICHT WOULD LEAVE IT UNRATIFIED IN ONLY ONE OF THE 12 EUROPEAN COMMUNITY COUNTRIES IN GERMANY RATIFICATION OF MAASTRICHT IS DEPENDENT ON THE OUTCOME OF A LAWSUIT CHALLENGING ITS CONSTITUTIONALITY 9307260008 930726 TECHNOLOGY & HEALTH FDA APPROVES DRUG FROM CHIRON AS FIRST FOR MULTIPLE SCLEROSIS WASHINGTON THE FOOD AND DRUG ADMINISTRATION APPROVED CHIRON CORP'S BETASERON THE FIRST DRUG TO BE MARKETED IN THE US TO TREAT MULTIPLE SCLEROSIS UNDER A MANUFACTURING PACT CHIRON OF EMERYVILLE CALIF WILL MAKE THE DRUG AND SCHERING AG'S BERLEX LABORATORIES UNIT OF RICHMOND CALIF WILL MARKET THE DRUG THE DRUG ALSO KNOWN AS INTERFERON BETA1B ISN'T A CURE AND CAN BE USED TO TREAT ONLY CERTAIN PATIENTS ACCORDING TO MONICA RAVELLE AN FDA SPOKESWOMAN BETASERON WAS FOUND IN CLINICAL TRIALS TO OFFER SOME RELIEF TO MS PATIENTS IN THE RELAPSINGREMITTING FORM OF MS IN WHICH PATIENTS SUFFER FROM PERIODIC DISORDERS THAT MAY INCLUDE VISION PROBLEMS PARTIAL PARALYSIS OR MEMORY LOSS THE DRUG CAUSES SUCH FLAREUPS TO OCCUR LESS FREQUENTLY ROUGHLY HALF OF ALL MS PATIENTS HAVE THE RELAPSINGREMITTING FORM ON JUNE 3 THE FDA INFORMED CHIRON THAT BETASERON WAS APPROVABLE BUT ASKED THAT THE COMPANY MEET CERTAIN CONDITIONS MS RAVELLE SAID THOSE CONDITIONS WERE CONFIDENTIAL BUT THAT THEY HAD BEEN MET A WRITTEN STATEMENT ISSUED BY BERLEX SAID IT WOULD START DISTRIBUTING THE DRUG IN ABOUT TWO MONTHS WITH THE NOTICE OF APPROVABILITY THE GOOD NEWS FOR CHIRON HAD BEEN EXPECTED IN MARCH DAYS BEFORE AN ADVISORY PANEL RECOMMENDED APPROVAL OF THE DRUG CHIRON SHARES WERE TRADING IN A RANGE OF 46 TO 54 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY CHIRON'S SHARES FELL 175 TO 65 MULTIPLE SCLEROSIS IS A CHRONIC DISEASE OF THE CENTRAL NERVOUS SYSTEM THAT AFFECTS ROUGHLY 300000 AMERICANS AND SYMPTOMS USUALLY BEGIN IN INDIVIDUALS WHEN THEY ARE BETWEEN 20 AND 30END 9307260007 930708 REGULATORY CHOKEHOLD HURRY UP AND WAIT BY RONALD REAGAN ANYONE WHO'S EVER BEEN IN THE MILITARY HAS HEARD THE EXPRESSION HURRY UP AND WAIT ALTHOUGH IT WON'T ADMIT IT THE CLINTON ADMINISTRATION IS TELLING THE AMERICAN PEOPLE THE SAME THING THROUGH ITS NEW TAXANDSPEND PLANS IT WANTS TO HURRY UP WITH THE TAX INCREASES THE LARGEST IN THE 217YEAR HISTORY OF THIS COUNTRY BUT AS FOR THE SPENDING CUTS THAT ARE SUPPOSED TO OFFSET THE TAXES AND REDUCE THE DEFICIT WELL WE'LL JUST HAVE TO WAIT AND WAIT AND WAIT MUCH OF THE SOCALLED DEFICIT REDUCTION THROUGH SPENDING CUTS ISN'T SCHEDULED TO TAKE PLACE UNTIL FOUR OR FIVE YEARS FROM NOW TAKE IT FROM ONE WHO DEALT WITH A DEMOCRATCONTROLLED CONGRESS DESPITE THE ASSURANCES PROMISES PLEDGES AND COMMITMENTS YOU ARE GIVEN THE SPENDING CUTS HAVE A WAY OF BEING FORGOTTEN OR QUIETLY LOBBIED OUT OF FUTURE BUDGETS BUT THE TAX INCREASES ARE AS CERTAIN TO COME AS WELL DEATH AND TAXES IN 1982 CONGRESS WANTED TO RAISE TAXES IT PROMISED IT WOULD CUT FEDERAL SPENDING BY 3 FOR EVERY 1 IN NEW TAXES BEING A NEW KID IN TOWN I AGREED TO THIS UNFORTUNATELY ALTHOUGH THE TAXES WENT INTO EFFECT CONGRESS NEVER CUT SPENDING BY EVEN A PENNY IN THE LATEST ROUND SEVERAL KEY DEMOCRATIC SENATORS MADE IT CLEAR THAT THE BUDGET PRESIDENT CLINTON LOBBIED THROUGH THE HOUSE WAS TOO HEAVY ON TAXES AND TOO LIGHT ON SPENDING CUTS THEY WANTED TO GET CLOSER TO WHAT THE ADMINISTRATION HAD FIRST PROPOSED BUT LATER REVERSED THAT IS 3 OF SPENDING CUTS FOR EVERY 1 OF NEW TAXES SOUND FAMILIAR THE SENATORS WERE OFF TO A PROMISING START WHEN THEY DECIDED TO RID THE BUDGET PACKAGE OF THE SOCALLED BTU TAX THIS WAS TO BE A BROADBASED TAX ON ALL ENERGY IT WAS THE STEALTH BOMBER OF TAXES FOR ONCE PASSED ITS RATES COULD BE GRADUALLY INCREASED WITHOUT THE AVERAGE TAXPAYER NOTICEABLY FEELING THE PINCH IN THE HOUSE SEVERAL INDUSTRIES AND GROUPS MANAGED TO EXEMPT THEMSELVES FROM THE TAX EFFECTIVELY TURNING IT INTO A SWISS CHEESE TAX FULL OF HOLES THE SENATE FINANCE COMMITTEE WAS WISE TO KNOCK IT OUT ENTIRELY THEY THEN STIRRED INTO THE BUDGET SEVERAL NEW INGREDIENTS TO TAKE ITS PLACE BUT THEY FORGOT AN ESSENTIAL ONE ECONOMIC GROWTH ECONOMIC GROWTH IS CREATED BY PEOPLE WHO PRODUCE THINGS THE MORE THAT'S PRODUCED TO MEET INCREASING DEMAND THE MORE NEW JOBS AND SERVICES ARE CREATED IN TURN OTHER THAN SHORTTERM MAKEWORK PROJECTS THE GOVERNMENT DOES NOT CREATE JOBS THE PRIVATE SECTOR DOES HOW BY INVESTING IN NEW PLANTS AND EQUIPMENT AND BY RESEARCHING AND DEVELOPING NEW PRODUCTS AND HOW DOES THE PRIVATE SECTOR DO ALL THAT BY HAVING ENOUGH CORPORATE PROFITS TO REINVEST AND ENOUGH INCENTIVES TO MAKE SUCH EXPENDITURES DESIRABLE WHAT WILL THEY GET FROM THE DEMOCRATIC SENATE'S BUDGET BILL THE OPPOSITE INCENTIVES INHIBITORS TO GROWTH THE MAIN INHIBITORS ARE A CAPITALGAINS TAX INCREASE AND HIGHER INCOMETAX RATES ON SOME OF OUR MOST PRODUCTIVE CITIZENS FOR EXAMPLE THE BILL WOULD RAISE THE CAPITALGAINS RATE TO 308 FROM 28 WHO PAYS CAPITALGAINS TAXES PROPONENTS OF HIGH RATES PAINT A PICTURE OF WEALTHY COUPONCLIPPERS WHO HAVE NOT BEEN PAYING THEIR FAIR SHARE THE REAL PICTURE IS VERY DIFFERENT AN IMPORTANT SOURCE OF CAPITAL GAINS ARE INVESTORS WHO PROVIDE VENTURE CAPITAL TO PROMISING HIGHTECH STARTUP COMPANIES THIS HIGHER TAX WILL DISCOURAGE THEM FROM MAKING SUCH INVESTMENTS RATHER THAN TURN OVER THEIR FUNDS BY TAKING THEIR GAINS AND MOVING ON TO NEW INVESTMENTS THEY WILL TEND TO HOLD ON WAITING FOR AN IMPROVED TAX CLIMATE DOWN THE ROAD NO NEW JOBS THERE IF ANYTHING CUTS IN THE CAPITALGAINS TAX RATE ARE IN ORDER THE LAST TIME THIS OCCURRED WITH PASSAGE OF THE STEIGER AMENDMENT IN 1978 THERE WAS A VERY LARGE INCREASE THE NEXT YEAR IN THE AMOUNT OF VENTURE CAPITAL AVAILABLE TO NEW BUSINESSES ALAS SOME POLITICIANS NOW AS THEN LACK THE COURAGE AND THE REALISM TO EXPLAIN BACK HOME THAT IT IS NECESSARY TO LET SOMEONE MAKE A PROFIT IN ORDER TO CREATE THE POOL OF INVESTMENT MONEY THAT MAKES JOBS WHAT THE WHITE HOUSE HAS BEEN CAMOUFLAGING WITH ITS CLASS WARFARE RHETORIC IS THAT A SUBSTANTIAL PORTION ABOUT 40 OF THE NATION'S SMALL BUSINESSES ARE TAXED UNDER THE SOCALLED SUBCHAPTER S PROVISION OF THE TAX CODE BY WHICH CORPORATE PROFITS ARE PAID AT THE INDIVIDUAL RATES OF THE OWNERS THE INCOMETAX INCREASE WILL HIT HARD AT THESE BUSINESSES HISTORICALLY OUR GREATEST SOURCE OF JOB CREATION AS IT IS NOT ONLY CAPITALGAINS AND INDIVIDUAL INCOMETAX RATES WILL GO UP BUT THE CORPORATE INCOME TAX WILL GO UP AS WELL UNDER THE CLINTONSENATE BUDGET AND SOCIAL SECURITY RECIPIENTS WHO EARN MORE THAN 32000 A YEAR WILL HAVE 85 OF THEIR LONGAGOPAIDFOR BENEFITS TAXED THIS IS A DISINCENTIVE FOR HEALTHY PRODUCTIVE OLDER PEOPLE WHO WANT TO WORK BASIC ECONOMIC BEHAVIOR IS NOT VERY COMPLICATED IF YOU GIVE PEOPLE INCENTIVES TO INVEST THEY'LL DO IT IF YOU PUT OBSTACLES IN THEIR WAY THEY WILL EITHER WORK AROUND THE OBSTACLES OR SIT TIGHT UNTIL THESE ARE REMOVED SIMPLY PUT THE CLINTON ADMINISTRATION SEEMS TO FAVOR MORE GOVERNMENT AS THE ANSWER TO STIMULATING THE ECONOMY AND REDUCING THE DEFICIT TO THEM I ASK THIS QUESTION APART FROM THE DEFENSE AND SECURITY OF OUR COUNTRY HOW MANY CASES CAN YOU NAME WHERE THE GOVERNMENT HAS RUN A PROGRAM OR PROVIDED A SERVICE WITH GREATER EFFICIENCY THAN THE PRIVATE SECTOR WITH REGARD TO RAISING REVENUES WE'VE SEEN TIME AND TIME AGAIN THAT INCREASED TAXES ONLY RESULT IN DECREASED GOVERNMENT REVENUES WORKING PEOPLE EVENTUALLY REACH A POINT WHEN IT JUST DOESN'T MAKE ECONOMIC SENSE TO WORK A LITTLE HARDER OR INVEST A LITTLE MORE OF THEIR MONEY IF THE RESULTING INCOME IS ONLY TO BE LOST TO HIGHER TAXES AFTER WITNESSING THE FAILED POLICIES OF ITS DEMOCRATIC PREDECESSORS I THOUGHT THE CLINTON ADMINISTRATION WOULD COME UP WITH SOMETHING NEW BUT AS THE FILM JURASSIC PARK HAS SHOWN US SOME PEOPLE ARE WILLING TO GO TO GREAT LENGTHS TO RESURRECT DINOSAURS IN THE EARLY 1980S WE SET OUT TO CREATE CONDITIONS THAT WOULD EXPAND THE US ECONOMY WE PASSED TAX CUTS ACROSS THE BOARD FOR EVERY TAXPAYER WE ELIMINATED INCOME TAXES ALTOGETHER FOR LOWERINCOME CITIZENS ALL OF THIS TRIGGERED A 92MONTH ECONOMIC EXPANSION THE LONGEST PEACETIME BOOM IN THE NATION'S HISTORY DURING THAT EXPANSION SOME 19 MILLION JOBS AND TENS OF THOUSANDS OF NEW BUSINESSES WERE CREATED AND THE EXPANDING ECONOMY INCREASED FEDERAL REVENUES THE OTHER HALF OF THE SUCCESSFUL GROWTH MIX OF THE 1980S INCENTIVES IS VIRTUALLY MISSING IN THE NEW BUDGET INDEED THE INCREASED CAPITALGAINS INCOME AND CORPORATE TAXES MAY RESULT IN JOB SHRINKAGE AND REDUCED INVESTMENT IN R&D AND NEW COMPANIES BOTH THE ORIGINAL CLINTON BUDGET AND THE SENATE DEMOCRATS' SUBSTITUTE SEEM TO BE BASED ON THE OLD LOWERTHEBRIDGE THEORY THAT OBSTRUCTS ECONOMIC FLOW WHAT WE NEED TO DO INSTEAD IS RAISE THE RIVER I URGE THE BUDGET MAKERS TO TAKE ANOTHER MORE REALISTIC LOOK AT THE BUDGETING PROCESS EACH YEAR'S BUDGET SHOULD STAND OR FALL ON ITS OWN IF THERE ARE TO BE TAX INCREASES LET'S SEE THE SPENDING CUTS THE SAME YEAR NOT AT SOME POINT DOWN THE ROAD NOT ONLY WILL SUCH AN APPROACH ADD MORE HONESTY TO THE SYSTEM BUT IT MAY ALSO ACTUALLY ACCOMPLISH THE GOAL OF DEFICIT REDUCTION I HATE TO BE IMPATIENT BUT I'VE BEEN AROUND LONG ENOUGH TO HAVE DOUBTS ABOUT SPENDING CUTS THAT WON'T BE SEEN FOR FIVE YEARS IF EVER IN FACT AT MY AGE I LIVE BY THREE RULES DON'T BUY GREEN FRUIT DON'T SIGN UP FOR LONGTERM MAGAZINE SUBSCRIPTIONS AND DON'T BELIEVE IN FUTURE SPENDING CUTS MR REAGAN WAS THE 40TH PRESIDENT OF THE US SEE RELATED LETTERS LETTERS TO THE EDITOR WHO AND WHAT REALLY CREATE JOBS WSJ JULY 26 1993 9307080042 YY93 MM07 9307260006 930726 MARKETING & MEDIA ADVERTISING ADVOCATE DROPS ITS GLOSSIER LOOK RETURNING TO OLD WAYS AND PROFIT BY DAVID J JEFFERSON LOS ANGELES LAST OCTOBER AT A HOLLYWOOD PARTY HEAVY ON BLACK CLOTHING AND HAIR GEL THE ADVOCATE MAGAZINE STRUTTED A NEW LOOK DESIGNED TO ATTRACT MAINSTREAM ADVERTISERS TO THE 25YEAROLD JOURNAL OF HOMOSEXUAL LIFE WITH A NEW YORKERESQUE COVER BY ARTIST DAVID HOCKNEY GLOSSY PAPER AND LOTS OF COLOR THE ADVOCATE HAD SEEMINGLY EVOLVED FROM THE VILLAGE VOICE TO THE VANITY FAIR OF GAY PUBLISHING GONE WERE THE RACY PERSONAL ADS THAT HAD KEPT MANY MAINSTREAM COMPANIES OUT OF THE TWICEMONTHLY MAGAZINE WHICH FOR SOME ISSUES OVER THE PAST TWO YEARS HAD REACHED A NATIONAL CIRCULATION OF 125000 IN THEIR PLACE A HANDFUL OF HIPYETRESPECTABLE SPREADS FROM SUCH BIG NAMES AS WARNER BROS RECORDS INC HIRAM WALKER & SONS INC AND CARILLON IMPORTERS LTD'S ABSOLUT VODKA BUT WITHIN SIX MONTHS THE ADVOCATE AND ITS CLOSELY HELD PARENT COMPANY LIBERATION PUBLICATIONS INC WERE TECHNICALLY BANKRUPT DESPITE ITS OFTTOUTED PROMISE OF DELIVERING READERS WITH AVERAGE HOUSEHOLD INCOMES OF MORE THAN 60000 AND BARGAINBASEMENT AD RATES OF JUST A FEW THOUSAND DOLLARS FOR A FULL PAGE THE MAGAZINE WASN'T ABLE TO ATTRACT NEARLY AS MANY BLUECHIP ADVERTISERS AS IT HAD ANTICIPATED TO COMPOUND MATTERS PRODUCTION COSTS HAD SOARED AND REVENUE FROM THE PERSONAL ADS WHICH ONCE ACCOUNTED FOR AS MUCH AS 40 OF ADVERTISING REVENUE WAS NOW GOING TO SUPPORT A SEPARATE ADVOCATE CLASSIFIEDS MAGAZINE THEY PULLED THE CLASSIFIEDS OUT ON THE GROUNDS THEY WOULD GET MORE NATIONAL ADVERTISING AND THEY NEVER GOT IT SAYS FORMER EDITOR IN CHIEF RICHARD ROUILARD WHO LEFT THE MAGAZINE LAST SUMMER AFTER A SPLIT WITH FORMER MANAGEMENT EVEN MORE FRUSTRATING THE ADVOCATE WATCHED AS SEVERAL PLUM ADS FROM THE GAP INC'S BANANA REPUBLIC CALVIN KLEIN INC AND PHILIP MORRIS COS' BENSON & HEDGES WENT TO ITS FEATUREORIENTED MAGAZINE RIVALS OUT AND GENRE NOW AFTER A FINANCIAL BAILOUT BY A FIVEMAN INVESTOR GROUP LED BY ENTREPRENEUR AND ONETIME MANHATTAN ART GALLERY DIRECTOR SAM WATTERS THE ADVOCATE IS RETHINKING BOTH ITS ADVERTISING AND EDITORIAL STRATEGIES RATHER THAN SPENDING ALL ITS ENERGIES CHASING MAINSTREAM ADVERTISERS THE ADVOCATE IS TARGETING THE GAYOWNED SMALL BUSINESSES THAT HAVE BEEN ITS BREAD AND BUTTER FOR YEARS AND INSTEAD OF TRYING TO BEST OUT AND GENRE IN TRACKING GAY LIFESTYLE FASHION AND ENTERTAINMENT TRENDS THE TWICEMONTHLY PUBLICATION IS GOING BACK TO BEING A NEWS MAGAZINE FIRST AND FOREMOST THE MAINSTREAM ADVERTISING CAME BUT NOT IN THE QUANTITY EXPECTED AND WE CANNOT AS A BUSINESS WITH AS MANY EMPLOYEES AS WE HAVE BASE OUR ENTIRE FUTURE ON SOMETHING THAT HASN'T HAPPENED YET SAYS MR WATTERS SINCE COMPLETING THE BUYOUT IN APRIL TERMS OF WHICH HE WON'T DISCLOSE EXCEPT TO SAY IT WAS IN THE SEVEN FIGURES MR WATTERS AND HIS CREW HAVE SLASHED THE STAFF TO A SKELETAL 45 PEOPLE FROM 75 CUT THE NUMBER OF PAGES IN THE MAGAZINE AND RETURNED TO CHEAPER SADDLESTITCHED BINDING FROM PERFECT BINDING ALL OF WHICH HE SAYS HAVE REDUCED EXPENSES BY 60 AND MADE THE COMPANY PROFITABLE AGAIN DEEMPHASIZING BIGBRAND ADS THE MAGAZINE HAS ELIMINATED ITS HIGHESTPRICED PAGES AND DONE AWAY WITH THE OLD RATE STRUCTURE WHERE IT BROKE DOWN AD PRICES ACCORDING TO REGION AND BUSINESS TYPE THAT'S FOR BIG MAGAZINES MR WATTERS SAYS NOW THE ADVOCATE USES A SINGLE RATE CARD 5650 FOR A COLOR PAGE 2950 FOR BLACKANDWHITE AND MR WATTERS SAYS HE DOESN'T MUCH CARE WHETHER THOSE PAGES ARE FILLED WITH ADS FOR BRANDNAME LIQUOR OR NONAME GAY INNS SO LONG AS THEY'RE FILLED HE PLANS TO ADD THREE OR FOUR AD SALESMEN STRICTLY TO MINE GAYOWNED SMALL BUSINESSES YES I WANT BIG ADVERTISERS BUT THESE SMALL ADVERTISERS THE JEWELERS THE POSTER MAKERS ARE MY FAVORITES MR WATTERS SAYS THAT IS THE REAL SEA CHANGE IN PART MR WATTERS IS JUST MAKING THE BEST OF A TOUGH SITUATION IN CERTAIN ADVERTISING CATEGORIES SUCH AS FASHION AND ENTERTAINMENT OUT AND GENRE ARE A BETTER FIT FOR MAINSTREAM COMPANIES LOOKING TO WADE INTO THE GAY MARKET MICHAEL GOFF EDITOR IN CHIEF OF NEW YORKBASED OUT WHICH IS PUBLISHED EVERY OTHER MONTH SAYS THEY'RE DIFFERENT KINDS OF MAGAZINES IF THE ADVOCATE IS THE NEWSWEEK OF GAY PUBLISHING WE'RE THE VANITY FAIR AND THOSE MAGAZINES ATTRACT DIFFERENT TYPES OF ADVERTISING THE PUBLISHER OF GENRE IN LOS ANGELES ALSO CLAIMS A NICHE WE'RE TRYING TO BE EXCLUSIVELY FABULOUS TO A SPECIFIC READER NAMELY 30ISH URBAN GAY MEN WITH HOUSEHOLD INCOMES OVER 75000 SAYS RICHARD SETTLES WHILE WE'VE HAD SOME SERIOUS INDEPTH FEATURES WE CARRY MORE LIFESTYLE THINGS LIKE TRAVEL BECAUSE OF ITS POLITICALLY CHARGED EDITORIAL CONTENT THE ADVOCATE HAS BEEN A TOUGHER SELL TO ADVERTISERS THAN ITS NEWER COMPETITORS I WENT TO NEW YORK TO TALK TO ADVERTISERS AND THEY SAID FLAT OUT THEY DID NOT LIKE THE MAGAZINE RECALLS MR ROUILARD WHO HEIGHTENED THE ADVOCATE'S MAINSTREAM PROFILE WITH SUCH CONTROVERSIAL STORIES AS AN ESPECIALLY RISQUE INTERVIEW WITH MADONNA AND A COVER STORY IDENTIFYING A TOP PENTAGON OFFICIAL AS HOMOSEXUAL ADVERTISERS BALKED AT THE MAGAZINE'S MORE STRIDENT COLUMNISTS HE SAYS AND THEY DIDN'T LIKE THE USE OF FOURLETTER WORDS IN THE MONTHS AFTER MR ROUILARD'S DEPARTURE THE ADVOCATE DRIFTED TOWARD SOFTER STORIES WITH COVERS ON DESIGNER JEAN PAUL GAULTIER AND ROCK SINGER KURT COBAIN OF NIRVANA BUT WHILE THE SHIFT MAY HAVE BEEN CALCULATED TO PLEASE MAINSTREAM ADVERTISERS IT ONLY SUCCEEDED IN ANNOYING READERS WHO THOUGHT THE MAGAZINE WAS LOSING ITS FOCUS ACCORDING TO A RECENT REPORT IN INSIDE MEDIA A PUBLISHING TRADE JOURNAL THE ADVOCATE'S PAID CIRCULATION DROPPED TO 75000 THE MAGAZINE HASN'T HAD A CIRCULATION AUDIT SINCE THE MID1980S THEY WENT A LITTLE FAR ON THE FEATURES PROBABLY TO COMPETE WITH WHAT THEY SAW AS A CHALLENGE FROM OUT GENRE AND 10 PERCENT MAGAZINE SAYS DEACON MACCUBBIN OWNER OF LAMBDA RISING A SPECIALTY BOOKSTORE IN WASHINGTON DC THEY'D DO BETTER TO FOCUS ON WHAT MAKES THEM UNIQUE RATHER THAN TRYING TO BE ALL THINGS TO ALL PEOPLE THAT SAYS MR WATTERS IS PRECISELY HIS PLAN RECENT COVER STORIES HAVE INCLUDED INTERVIEWS WITH SCIENTIST SIMON LE VAY AND AUTHOR RANDY SHILTS AND MR WATTERS IS PRESSING FOR MORE STORIES FROM THE HEARTLAND PARTICULARLY SINCE ONLY A THIRD OF SUBSCRIBERS ARE IN CALIFORNIA AND NEW YORK SAM IS VERY INTERESTED IN COMMUNITY ISSUES AND HE'S MAKING SURE THAT WE COVER THEM TO THE DEPTH WE SHOULD BE SAYS EDITOR IN CHIEF JEFF YARBROUGH THE RESULT OF THE EDITORIAL SHIFT MR WATTERS SAYS IS THAT CIRCULATION IS NOW BACK UP TO 85000 AND RISING THE BIGGEST CHALLENGE FOR THE ADVOCATE HOWEVER WILL BE KEEPING AND BUILDING ITS ADVERTISING BASE OF GAYOWNED BUSINESSES FOR EXAMPLE DON'T PANIC DESIGNS INC A MAKER OF GAYTHEMED TSHIRTS HAS LONG BEEN AN ADVOCATE ADVERTISER BUT THE MAGAZINE'S TROUBLES OVER THE PAST YEAR DEFINITELY HELPED US FORM A RELATIONSHIP WITH OUT MAGAZINE THAT WE DIDN'T HAVE BEFORE SAYS SKYLER THOMAS DON'T PANIC'S PRESIDENT SUBARU OF AMERICA INC CONFIRMED THAT IT IS PLACING ITS 70 MILLION ACCOUNT IN REVIEW IN ADDITION THE AUTO MAKER SAID IT HAD FIRED WIEDEN & KENNEDY ITS ADVERTISING AGENCY FOR THE PAST TWO YEARS AS A RESULT THE PORTLAND ORE AGENCY LAID OFF 11 EMPLOYEES IN ITS PHILADELPHIA OFFICE WHICH WAS ESTABLISHED PRIMARILY TO SERVE THE SUBARU ACCOUNT THE OFFICE AFTER THE DISMISSALS HAS 45 EMPLOYEES MARK DUNN SUBARU'S NATIONAL ADVERTISING MANAGER SAID IN AN INTERVIEW THAT THE AUTO MANUFACTURER BASED IN CHERRY HILL NJ WON'T HOLD AN OFFICIAL REVIEW UNTIL THE FALL SINCE AUGUST THROUGH SEPTEMBER IS THE BEST SELLING TIME OF THE YEAR AND NOW IS NOT THE BEST TIME TO LOOK FOR AN ADVERTISING AGENCY SUBARU HAS GONE THROUGH A LOT OF CHANGES OVER THE PAST TWO YEARS SAID MR DUNN WE NEED A NEW DIRECTION AND NEW MARKETING STRATEGY SUBARU SAID IT WILL SHIFT MORE OF ITS ADVERTISING AND MARKETING RESOURCES TO REGIONAL AND LOCAL LEVELS TO SUPPORT ITS OVER 700 DOMESTIC DEALERS THE AUTO MAKER A UNIT FUJI HEAVY INDUSTRIES LTD OF JAPAN NEEDS TO ACCELERATE ITS SALES WHICH ARE DOWN 21 IN THE FIRST SIX MONTHS OF THIS YEAR COMPARED WITH THE SAME PERIOD A YEAR AGO ACCORDING TO AUTOPACIFIC GROUP WITH WIEDEN NOT INVITED TO PARTICIPATE IN THE REVIEW LIKELY CONTENDERS INCLUDE THE FOLLOWING AGENCIES AMMIRATI & PURIS WHICH RESIGNED THE BMW ACCOUNT LAST YEAR AND THREE AGENCIES CURRENTLY IN CONTENTION FOR VOLKSWAGEN AG'S AUDI OF AMERICA HILL HOLLIDAY CONNORS COSMOPULOS CARMICHAEL LYNCH AND MCKINNEY & SILVER THE WINNER OF THE AUDI ACCOUNT IS EXPECTED TO BE ANNOUNCED BY THE END OF THIS WEEK THE LOSS IS A SETBACK FOR WIEDEN & KENNEDY ANOTHER MAJOR ACCOUNT IT HAS IS NIKE AND THE AGENCY IS WIDELY CREDITED WITH EFFECTIVE ADVERTISING FOR THE ATHLETIC SHOE BRAND IN AN INTERVIEW DAN G WIEDEN THE AGENCY'S PRESIDENT AND CHIEF OPERATING OFFICER CALLED THE TIMING OF THE DISMISSAL A SHOCK SINCE WE WERE GIVEN ASSURANCES EVERYTHING WAS FINE HE WAS TOLD THIS A WEEK AGO TODAY BY GEORGE MULLER SUBARU'S PRESIDENT AND CHIEF OPERATING OFFICER THIRTEEN LARGE AND MIDSIZE AGENCIES MADE THE FIRST CUT IN THE REVIEW FOR INTERNATIONAL BUSINESS MACHINES CORP'S ESTIMATED 20 MILLION PERSONALCOMPUTER ACCOUNT IN THE US IBM SAID JOINING IN THE CREATIVE CRUSH ARE THREE BIG AGENCIES WITH ESTABLISHED WORLDWIDE NETWORKS LEO BURNETT OF CHICAGO YOUNG & RUBICAM OF NEW YORK AND INTERPUBLIC GROUP'S LINTAS THE INCUMBENT CHIAT/DAY OF VENICE CALIF IDENTIFIED AS A FRONTRUNNER IN THE TRADE PRESS IS ON THE LIST TOO SO ARE A PACK OF SMALLER AGENCIES KNOWN FOR EYECATCHING CREATIVE WORK THEY ARE HAL RINEY & PARTNERS AND OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN BOTH OF SAN FRANCISCO CARMICHAEL LYNCH AND FALLON MCELLIGOTT OF MINNEAPOLIS AND FIVE NEW YORK SHOPS DEUTSCH/DWORIN KIRSHENBAUM & BOND INTERPUBLIC GROUP'S LOWE & PARTNERS OMNICOM GROUP'S MERKLEY NEWMAN HARTY AND EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER NOTABLY ABSENT IS LORD DENTSU & PARTNERS YOUNG & RUBICAM'S JOINT VENTURE WITH DENTSU OF JAPAN THE AGENCY WAS EXPECTED TO HAVE AN INSIDE TRACK BECAUSE ITS CHAIRMAN DICK LORD TOOK PART IN CREATING IBM'S BELOVED LITTLE TRAMP CAMPAIGN IN THE 1980S WHETHER MR LORD WILL WORK ON THE Y&R PITCH COULDN'T BE LEARNED AN IBM SPOKESWOMAN DECLINED TO NAME CONTENDERS FOR THE ESTIMATED 40 MILLION EUROPEAN PC ACCOUNT CURRENTLY SPLIT BETWEEN LINTAS AND SWISS AGENCY GGK REORGANIZATION AYER NEW YORK SAID IT HAS CREATED THE NEW POSITION OF PRESIDENT AND CHIEF OPERATING OFFICER AND IS LOOKING FOR SOMEONE TO FILL THE JOB ANNE MACDONALD EXECUTIVE VICE PRESIDENT IN CHARGE OF AYER'S PROCTER & GAMBLE BUSINESS HAS LEFT THE AGENCY AYER SAID IN RELATED MOVES DOM ROSSI PRESIDENT OF AYER'S US OPERATIONS WAS NAMED VICE CHAIRMAN OF BUSINESS DEVELOPMENT TOM MAXEY VICE CHAIRMAN AND AYER'S CURRENT CHIEF OPERATING OFFICER WILL RETAIN THE VICE CHAIRMAN TITLE AND FOCUS ON INTERNATIONAL OPERATIONS A SPOKESMAN SAID WHO'S NEWS MIKE DRAKE WAS NAMED EXECUTIVE VICE PRESIDENT AND US MEDIA DIRECTOR AT OMNICOM GROUP'S BBDO NEW YORK A NEW POSITION PREVIOUSLY IN CHARGE OF THE NEW YORK MEDIA OPERATIONS MR DRAKE WILL NOW OVERSEE MEDIA IN SEVEN BBDO OFFICES JACK FRAKES EXECUTIVE CREATIVE DIRECTOR OF THE BLOOMFIELD HILLS AGENCY ROSS ROY INC IS RETIRING THE AGENCY SAID MR FRAKES WILL REMAIN ON THE JOB UNTIL A SUCCESSOR IS NAMED 9307260005 930726 CORPORATE FOCUS MCDONNELL EMBARKS ON A NEW COURSE FOR OLD PLANES FIRM TO OFFER REFURBISHING PACKAGES FOR DC9S IN BID TO PRESERVE ITS TURF BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP ISN'T SELLING MANY NEW JETLINERS THESE DAYS SO IT HAS SETTLED ON A NOVEL MARKETING TACK THE ST LOUIS AEROSPACE COMPANY WANTS CARRIERS TO FIX UP THE PLANES THAT IT SOLD TO THEM LONG AGO THE TACTIC DOESN'T PROVIDE MUCH IN THE WAY OF SORELY NEEDED REVENUE OR JOBS FOR MCDONNELL DOUGLAS WHICH IS ALSO THE NATION'S LARGEST DEFENSE CONTRACTOR BUT IT COULD MAKE A PROFIT AS THE UPGRADES WOULD BE ORCHESTRATED BY THE DOUGLAS AIRCRAFT CO COMMERCIAL AIRPLANE UNIT IN CALIFORNIA AND FOR NOW AT LEAST IT SEEMS TO BE KEEPING RIVALS FROM MAKING INROADS WITH SOME LOYAL CUSTOMERS DOUGLAS WILL MAKE GOOD MONEY ON THIS AND I'M NOT THE LEAST BIT EMBARRASSED TO SAY THAT SAYS JOHN WOLF EXECUTIVE VICE PRESIDENT OF DOUGLAS AIRCRAFT WHO NOTES THERE ARE 743 OLDER DC9 AIRLINERS FLOWN BY DOZENS OF CARRIERS WORLDWIDE HOWEVER HE ALLOWS IT IS CERTAINLY NOT A JOBS PROGRAM FOR HIS COMPANY IN THE PAST FEW MONTHS DOUGLAS AIRCRAFT HAS GOTTEN BIG CARRIERS IN FINLAND AND CANADA TO SERIOUSLY CONSIDER REFURBISHING A TOTAL OF 52 OLD DC9 JETLINERS WITH ENGINE HUSH KITS TO MAKE THEM QUIETER OR TO FIT THEM WITH NEW HIGHEFFICIENCY ENGINES THE COMPANY ALSO IS PITCHING OPTIONS TO ADD NEW COCKPIT AVIONICS CABIN INTERIORS AND MORE IF THE AIRLINES PROCEED WITH A LARGER OVERHAUL DOUGLAS AIRCRAFT WILL EVEN PROVIDE A WARRANTY FOR THE 25YEAROLD PLANES AS IF THEY WERE NEW THE PLANES ARE THEN INTENDED TO BE READY AND SAFE TO FLY AN ADDITIONAL 15 YEARS THE JET MAKER WHICH IS STRUGGLING TO HOLD MARKET SHARE DURING A GLOBAL ORDERING SLUMP AIMS TO PRESERVE WHAT TURF IT CAN AGAINST MARKET LEADER BOEING CO AND SECONDRANKED AIRBUS INDUSTRIE OF EUROPE SO FAR THIS YEAR THIRDRANKED DOUGLAS HAS WON ORDERS FOR ONLY SEVEN JETS MEANWHILE RIVALS HAVE WON 153 IN THE SAME PERIOD WITH THE BULK OF THOSE GOING TO BOEING FOR FINANCIALLY HARDHIT CARRIERS THE UPGRADE PROGRAM THAT DOUGLAS AIRCRAFT HAS DUBBED DC9X COULD ENSURE THE AVAILABILITY OF AFFORDABLE 100SEAT AIRLINERS WITHOUT COMMITTING THEM TO COSTLY NEW AIRCRAFT THE UPGRADE PACKAGES LIKELY WOULD COST AS LITTLE AS 15 MILLION AN AIRPLANE FOR HUSH KITS OR AS MUCH 18 MILLION FOR SWEEPING UPGRADES WHEN THE REFURBISHED PLANES ARE AVAILABLE IN ABOUT 1997 THAT WOULD COMPARE WITH NEWJET COSTS OF 30 MILLION TO 35 MILLION THE DOUGLAS PLAN OFFERS AIRLINES ANOTHER SWEET INDUCEMENT IT WOULD KEEP HUNDREDS OF THEIR OWN MECHANICS EMPLOYED DOING THE UPGRADES AT FINNAIR A LONGTIME BUYER OF DOUGLAS AIRLINERS THE DC9X PROGRAM WOULD PROVIDE 300 JOBS IN FINLAND WHERE UNEMPLOYMENT HAS HOVERED AT ABOVE 15 OF THE WORK FORCE MR WOLF SAYS IN MAY MCDONNELL DOUGLAS NEARLY LOST THE VALUED CUSTOMER BOEING BASED IN SEATTLE AND LEASING GIANT INTERNATIONAL LEASE FINANCE CORP HAD TEAMED UP AND NEARLY TALKED THE CARRIER INTO DUMPING ITS FLEET OF 17 OLD DC9S 17 NEWER MD80S AND EIGHT BIGGER DC10 AND MD11 MODELS BOEING AND ILFC A BEVERLY HILLS CALIF UNIT OF AMERICAN INTERNATIONAL GROUP THE NEW YORK INSURANCE CONCERN BECKONED WITH LENIENT TERMS ON NEW BOEING 767 WIDEBODIES AND SMALLER ADVANCED BOEING 737X JETS STILL IN DEVELOPMENT IN A DEFENSIVE RALLY LED BY MR WOLF DOUGLAS SALESMEN SET UP CAMP FOR WEEKS IN FINLAND UNTIL FINNAIR AGREED TO CONSIDER THE REFURBISHING PLAN FOR THE DC9S DOUGLAS HAD NO CHOICE BUT TO RESPOND AGGRESSIVELY SAYS MR WOLF AS IT WILL WHENEVER GOLIATH SHOWS UP ULTIMATELY DOUGLAS AIRCRAFT ALSO AGREED TO BUY BACK A FEW OF THE AIRLINE'S OLDER WIDEBODY JETS A FINNAIR SPOKESMAN SAYS THE CARRIER NOW WILL STICK WITH ITS REMAINING MD11S AND WILL DECIDE BY YEAR'S END WHETHER TO REBUILD ITS DC9S PUTTING TO REST THE PROSPECT OF A BOEINGILFC INCURSION IF THE CARRIER DOESN'T ACCEPT THE MCDONNELL DOUGLAS PROPOSAL IT WILL TAKE A TIMEOUT UNTIL SOMETIME NEXT YEAR BEFORE DECIDING WHETHER TO BUY ANOTHER JET MAKER'S AIRPLANES AT AIR CANADA MANAGERS SAY THEY WILL DECIDE BY THIS FALL WHETHER TO UPGRADE 35 DC9S AS DOUGLAS AIRCRAFT HAS PROPOSED IN A PROGRAM THAT WOULD CREATE 700 JOBS FOR AIR CANADA OVER THREE YEARS NEW AIRCRAFT SIMPLY ARE TOO EXPENSIVE RIGHT NOW SAYS ESTHER SZYNKARSKY AIR CANADA'S GOVERNMENT RELATIONS DIRECTOR AND A MCDONNELL DOUGLAS WARRANTY FOR A REBUILT PLANE IS AN ATTRACTIVE FEATURE FOR ANY AIRLINE LOOKING FOR SMALL JETS MR WOLF SAYS OTHER BIG DC9 OPERATORS AMONG ITS CORE OF ABOUT 20 AIRLINES ARE INTRIGUED LIKELY TARGETS INCLUDE SCANDANAVIAN CARRIER SAS THE SPANISH AIRLINE IBERIA AND WINGS HOLDINGS INC'S NORTHWEST AIRLINES WHICH OPERATES 147 DC9S A NORTHWEST SPOKESMAN SAID ITS MANAGERS ARE LOOKING FORWARD TO REVIEWING THE IDEA IN DETAIL NEITHER BOEING NOR AIRBUS IS COMMENTING PUBLICLY ON THOSE CONTESTS OR ON THE DC9X IDEA PRIVATELY THOUGH SOME RIVAL EXECUTIVES SCOFF AT IT AS SIGNALING THE DESPERATION OF A DOUGLAS AIRCRAFT THAT MAY BE UNABLE TO STAY IN THE BUSINESS OF SELLING NEW JETLINERS AIRBUS DOESN'T YET HAVE ANY NARROWBODY JETS OLD ENOUGH TO UPGRADE BOEING HAS SHIED AWAY FROM SUCH PROGRAMS THOUGH IT COOPERATES WITH CARRIERS THAT WANT TO REFIT ITS OLD JETS INSTEAD BOEING WANTS TO INTEREST AIRLINES IN A NEW LINE OF LONGERRANGE FASTER 737X JETS AS REPLACEMENTS FOR BOTH OLDER 737 MODELS AND ANY DC9S THAT AIRLINES MIGHT WANT TO SHED DOUGLAS IS APPROACHING SOLUTIONS TO THE AIRLINES DIFFERENTLY SAYS JACK PHILLIPS NORTH AMERICAN MARKETING DIRECTOR FOR ROLLS ROYCE PLC ONE OF TWO BIG ENGINE MAKERS BACKING THE DOUGLAS AIRCRAFT INITIATIVE THE OTHER IS THE PRATT & WHITNEY UNIT OF UNITED TECHNOLOGIES CORP MR WOLF SAYS DOUGLAS AIRCRAFT SEES SUBSTANTIAL PROFIT IN THE PROGRAM BECAUSE IT WOULD SIMPLY SELL KITS OF PARTS EXPERTISE QUALITY CONTROL AND THE WARRANTY COVERING PARTS AND LABOR FOR STRUCTURAL DEFECTS THE COMPANY ALSO HAS TO WIN A NOD FROM THE FEDERAL AVIATION ADMINISTRATION WHICH NEEDS TO BE ASSURED THAT AN UPGRADE CAN EXTEND A DC9'S LIFE AS PROMISED MR WOLF SAYS THAT IDEALLY HIS COMPANY WOULD BE SELLING NEW JETS INSTEAD OF PROPOSING MAJOR MODIFICATIONS BUT THE COMPANY STILL FACES INSTABILITY EVEN AMONG ITS PRIME CUSTOMERS RECENTLY FOR EXAMPLE DELTA AIR LINES HAS PRESSED THE MANUFACTURER FOR SPECIAL ARRANGEMENTS AND DELAYS IN DELIVERIES ACCORDING TO PEOPLE FAMILIAR WITH THE MOVE SO FOR NOW MR WOLF SAYS THE COMPANY HAS ELECTED SIMPLY TO GIVE CUSTOMERS AN OPTION THEY WANT AND ONE THAT SUITS THE TIMES ULTIMATELY HE ADDS IT IS BETTER TO KEEP DOUGLAS AIRCRAFT AIRPLANES IN THOSE FLEETS FOR NOW BECAUSE IF YOU HAVE A CUSTOMER YOU STAND A WHOLE LOT BETTER CHANCE OF SELLING IT SOME NEW JETS IN BETTER TIMES 9307260004 930726 BUSINESS BRIEF UPSCALE ULTRAIR MAKES ITS FINAL FLIGHT AFTER 6 MONTHS AS A SCHEDULED CARRIER HOUSTON ULTRAIR TOUTED ITSELF AS A FREQUENT FLIER'S FANTASY BUT THE UPSCALE AIRLINE'S DREAM WORLD HAS COME TO AN END ULTRAIR CEASED OPERATION YESTERDAY AS A SCHEDULED CARRIER ENDING A QUIXOTIC SIXMONTH EFFORT UNLIKE MOST NEW CARRIERS WHICH AIM TO LURE PASSENGERS THROUGH LOW FARES AND NOFRILLS SERVICE ULTRAIR PURSUED BUSINESS FLIERS WHO WERE WILLING TO BUY FULLFARE TICKETS IN EXCHANGE FOR GOURMET MEALS FREE DRINKS AND OTHER AMENITIES RARELY SEEN ON BOARD FLIERS LOVED THE SERVICE BUT THAT ALONE WASN'T ENOUGH TO FILL ULTRAIR'S PLANES THE AIRLINE OFTEN FLEW WITH LESS THAN 20 OF ITS SEATS FILLED ULTRAIR DISCOVERED THAT MANY TRAVELERS PLACE OTHER FACTORS SUCH AS TICKET PRICES FREQUENTFLIER MILES AND SCHEDULE AHEAD OF PREMIUM SERVICE AND THUS IT COULDN'T COMPETE AGAINST CONTINENTAL AIRLINES WHICH HAS A MAJOR HUB IN HOUSTON ULTRAIR BLAMED ITS FAILURE ON CONTINENTAL ALLEGING THAT THE NATION'S FOURTHLARGEST AIRLINE ENGAGED IN PREDATORY PRICING AND ANTICOMPETITIVE BEHAVIOR ULTRAIR FILED A FEDERAL LAWSUIT AGAINST CONTINENTAL SEEKING MONETARY DAMAGES CONTINENTAL DISMISSED ULTRAIR'S CHARGES AS LUDICROUS AND CLEARLY WITHOUT MERIT ULTRAIR FLEW BETWEEN HOUSTON AND NEWARK NJ AND JUST BEGAN SERVICE BETWEEN HOUSTON AND NEW YORK'S LA GUARDIA INTERNATIONAL AIRPORT SEVERAL MONTHS AGO ULTRAIR DISCONTINUED HOUSTONLOS ANGELES SERVICE BECAUSE OF LACK OF INTEREST AMR CORP'S AMERICAN AIRLINES SAID IT WILL HONOR ULTRAIR TICKETS LAST THURSDAY ULTRAIR COFOUNDER BARNEY F KOGEN A HOUSTON BUSINESSMAN DISCLOSED THAT HE SOLD HIS 50 INTEREST IN THE AIRLINE ALTHOUGH HE DIDN'T SAY TO WHOM ULTRAIR'S OTHER FOUNDER AND PRINCIPAL INVESTOR WAS HOUSTON BUSINESSMAN GORDAN CAIN ULTRAIR SAID IT WOULD PURSUE OTHER OPPORTUNITIES IN THE AIRLINE BUSINESS PRESUMABLY AS A CHARTER WHICH IS HOW THE CARRIER BEGAN 9307260003 930726 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ABRAXAS PETROLEUM CORP AN OFFERING OF 2250000 COMMON SHARES VIA JEFFERIES & CO COLE NATIONAL GROUP INC AN OFFERING OF 190 MILLION OF SENIOR NOTES DUE 2001 VIA MERRILL LYNCH & CO AND FIRST BOSTON CORP NWNL COS AN OFFERING OF 175 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP ROBINSONHUMPHREY CO AND DAIN BOSWORTH INC AND 120 MILLION OF 10YEAR NOTES VIA MERRILL LYNCH AND DONALDSON LUFKIN 9307260002 930726 GLOBAL VIEW A DAY IN THE LIFE' AND OTHER ECONOMICS LESSONS BY GEORGE MELLOAN I HEARD THE NEWS TODAY OH BOY FOUR THOUSAND HOLES IN BLACKBURN LANCASHIRE AND THOUGH THE HOLES WERE RATHER SMALL THEY HAD TO COUNT THEM ALL NOW WE KNOW HOW MANY HOLES IT TAKES TO FILL THE ALBERT HALL FROM A DAY IN THE LIFE BY JOHN LENNON WE'LL STOP RIGHT THERE BEFORE A DAY IN THE LIFE DEPARTS FROM THE SUBTLE ECONOMICS LESSON IN THOSE LINES AND WINDS UP WINGING OFF INTO SPACE OR MORE PRECISELY SPACINESS A LESSON IN ECONOMICS SOMEONE WILL ASK SURELY YOU JEST WELL ANYONE CAN DRAW HIS OWN CONCLUSIONS ABOUT WHAT JOHN LENNON HAD IN MIND WITH HIS SATIRICAL VISION OF A POINTLESS NOT TO MENTION IMPOSSIBLE EXERCISE IN HOLE MANAGEMENT HE HIMSELF DESCRIBED IT AS A NONSENSE VERSE BUT TO ME IT EVOKES THE DEMONS OF ECONOMICS THE FACTS BEHIND THE DAILY MAIL'S LONGAGO DISPATCH ON THE DISCOVERY OF 4000 HOLES IN BLACKBURN ARE UNKNOWN TO ME BUT HOLECOUNTING SOUNDS LIKE MAKEWORK MAYBE AN ENVIRONMENTAL CONTROL AGENCY WAS TRYING TO DETERMINE WHETHER BLACKBURN SHOULD BE PHYSICALLY REMOVED FROM AN UNSAFE LOCATION TO A PLACE WITH FEWER HOLES CERTAINLY IT IS PRESUMPTUOUS TO TRY TO INTERPRET THE COMPLEX ART OF THE LATE MR LENNON SOME MIGHT SAY THAT HIS LYRICS HAD A TOUCH OF NIHILISM AND THAT AN ECONOMIST HE DEFINITELY WAS NOT YET HIS FERTILE MIND FOUND HOLE COUNTING WRYLY AMUSING AS DO MOST OF US WHEN WE ENCOUNTER ESSENTIALLY USELESS ENDEAVORS JUST FOR FUN LET'S ASSUME THAT MR LENNON IN HIS QUIRKY WAY WAS TELLING THE 1960S GENERATION SOMETHING ABOUT THE NEW AGE THEY WERE ENTERING CLEARLY THEY WERE GETTING A MESSAGE OF SOME KIND THE GENTLE IRONIES IN THE WORDS AND MUSIC OF THE BEATLES CAPTURED THE MINDS AND SOULS OF THE YOUTHS OF THAT GENERATION TO AN EXTENT UNPRECEDENTED IN THE ANNALS OF MUSIC LET'S ASSUME THAT THE LIVERPOOL TROUBADORS WERE USHERING IN WHAT HIGHER AND DULLER INTELLECTS HAVE CHOSEN TO CALL POSTINDUSTRIAL SOCIETY PERHAPS THE BEATLES' INTUITION TOLD THEM WE WOULD HAVE PROBLEMS FINDING OUR WAY IN THIS NEW GRAY WORLD MOST OF US IN POSTINDUSTRIAL SOCIETY UNLIKE OUR NOTSODISTANT ANCESTORS DON'T MAKE USEFUL THINGS WE DON'T PLANT TATERS WE DON'T PLANT COTTON RATHER WE DEAL IN INTANGIBLE MERCHANDISE SUCH AS THIS LITTLE ESSAY OR ARGUMENTS LAID DOWN IN A LEGAL BRIEF OR LECTURES TO POSTGRADUATE STUDENTS ON JUNGIAN DREAM INTERPRETATION THE FUNDAMENTAL PROBLEM OF THE POSTINDUSTRIAL AGE HAS TO DO WITH MEASURING THE SOCIAL VALUE OF THESE ACTIVITIES WHAT DOES ALL THE PAPER OR BYTE SHUFFLING CONTRIBUTE TO JOHN STUART MILL'S GOAL OF THE GREATEST HAPPINESS FOR THE GREATEST NUMBER THE NOW VERY NUMEROUS CROWD OF POSTINDUSTRIAL MEN AND WOMEN WHO MAKE NICE LIVINGS AS TORT LAWYERS MIGHT DEFEND THEIR WORTH IN THESE TERMS BY REPRESENTING THOSE DAMAGED BY THE NEGLIGENCE OF SOMEONE ELSE LET'S SAY A DOCTOR OR CORPORATION WE CONTRIBUTE TO A GENERAL PERCEPTION OF FAIRNESS AND THUS WE FURTHER SOCIAL ORDER BUT BECAUSE OF THE FOG OF OUR COMPLEX POSTINDUSTRIAL AGE THE PEOPLE WHO PAY THOSE EXAGGERATED DAMAGE AWARDS USUALLY DON'T KNOW THEY ARE DOING SO THE COSTS ARE SOCIALIZED THAT IS THEY ARE SPREAD BROADLY THROUGH THE POPULATION THE COST OF A PRODUCT LIABILITY AWARD WILL PASS THROUGH THE CORPORATION TO SOMEONE'S PENSION FUND A DOCTOR'S EXPENSIVE MALPRACTICE INSURANCE WILL FACTOR INTO THE COST OF MEDICARE OR BLUE CROSS CORPORATIONS AND HEALTH INSURANCE ARE MERE CONDUITS IN THE END THE EXCESS DAMAGES AWARDED TO SOME LUCKY CITIZEN ARE PAID FOR BY HIS FELLOW MAN WITH NO WAY OF JUDGING WHETHER IT IS GOOD VALUE THE ECONOMIC COSTS OF GOVERNMENT REGULATION ALONG WITH WHATEVER BENEFITS IT MIGHT HAVE ALSO ARE SOCIALIZED THUS IT IS DIFFICULT TO CLEARLY DEFINE THE COSTS WHEN REGULATION GOES OFF TRACK ONTO MINDLESS COUNTERPRODUCTIVE AND COERCIVE PATHS AS I HAVE RECENTLY ARGUED HAS BEEN THE CASE WITH MUCH ENVIRONMENTAL REGULATION THE SELFINTERESTED ARMY BEHIND THESE INTERFERENCES WITH MARKETS AND HUMAN RIGHTS IS MADE UP OF A LOT OF POSTINDUSTRIAL TYPES WHO HAVE LEARNED THAT PRACTICALLY EVERYONE CARES ABOUT THE ENVIRONMENT PROMOTING ENVIRONMENTAL CAUSES THUS BECOMES A GOOD WAY TO MAKE A LIVING WHEN THEIR EFFORTS ARE NOT BASED ON ANY EVIDENCE THAT A PROBLEM EXISTS THEY AMOUNT TO LITTLE MORE THAN COUNTING HOW MANY HOLES IT TAKES TO FILL THE ALBERT HALL TAXPAYERS AND CONSUMERS GET THEIR POCKETS PICKED IN A POSTINDUSTRIAL SOCIETY WHERE PEOPLE HAVE NO DIRECT SENSE OF HOW MUCH MEDICAL MALPRACTICE SUITS OR PAPER SHUFFLING BUREAUCRACY COSTS IT ALSO BECOMES VERY HARD TO MEASURE WHETHER THE SOCIETY AS A WHOLE IS MOVING TOWARD GREATER WELLBEING OR IS RETROGRESSING IN A LECTURE ON BBC4 TV LAST MARCH BUSINESS TYCOON SIR JAMES GOLDSMITH SAID THAT GROSS DOMESTIC PRODUCT IS NO GUIDE HE OBSERVED THAT THE SIZE OF THE US ECONOMY HAS QUADRUPLED IN THE LAST 50 YEARS AND SCIENCE AND TECHNOLOGY HAVE ACHIEVED INCREDIBLE INNOVATIONS AND YET AMERICAN SOCIETY IS DEEPLY ILL HE SAID AMERICAN CITIES THAT ARE WRACKED WITH CRIME DRUG TAKING ALCOHOLISM SUICIDE AND FAMILY BREAKDOWN ARE ACCORDING TO OFFICIAL FIGURES CONSIDERED 'RICHER' THAN MANY OF THE CITIES THAT HAVE SURVIVED ELSEWHERE IN THE WORLD AND WHICH ARE STILL RICH IN STABILITY AND CONTENTMENT IN SHORT IT IS RELATIVELY EASY TO MEASURE THE TOTAL OUTPUT OF A SOCIETY BUT IS NOT SO EASY TO MEASURE THE QUALITY OF THAT OUTPUT IN THE POSTINDUSTRIAL AGE IT THUS BECOMES MORE NECESSARY TO MEASURE HUMAN PROGRESS SUBJECTIVELY FOR EXAMPLE THROUGH OPINION POLLS WE KNOW THAT A VERY HIGH PROPORTION OF THE PEOPLE OF THE INDUSTRIAL WORLD TODAY ARE UNHAPPY WITH GOVERNMENT WHICH MAY MEAN THEY ARE NOT ESPECIALLY HAPPY WITH THE QUALITY OF THEIR LIVES EVEN THE PEOPLE WHO CAN SEE A TANGIBLE PRODUCT OF THEIR LABORS ARE HARDER TO SATISFY WHICH EXPLAINS WHY MANUFACTURERS ARE TRYING TO GIVE EMPLOYEES A GREATER SENSE OF ACCOMPLISHMENT THROUGH QUALITY CIRCLES AND TEAM ASSEMBLAGE HILLARY CLINTON A MEMBER OF THE BEATLES GENERATION YEARNS FOR A POLITICS OF MEANING BUT AT THE SAME SHE BACKS THOSE IN HER HUSBAND'S GOVERNMENT SUCH AS AL GORE WHO INVOKING THE MAGIC NAME ENVIRONMENT SPECIALIZE IN THE POLITICS OF REGULATION AND COERCION YET ANOTHER PRODUCT OF THE 1960S WAS THE LIBERTARIAN MOVEMENT PEOPLE WHO WANT LESS INTERFERENCE IN THEIR LIVES FROM GOVERNMENT THEY ARGUE THAT THE POSTINDUSTRIAL AGE HAS PRODUCED A HUGE POPULATION OF OFFICIAL BUSYBODIES PERHAPS THAT EXPLAINS WHY SOME PEOPLE GET DEPRESSED WHEN THEY HEAR THE NEWS TODAY 9307260001 930726 WITH IBM AT A CROSSROADS GERSTNER SEEMS TO BE CHARTING A MIDDLE COURSE BY MICHAEL W MILLER AND LAURIE HAYS STAFF REPORTERS OF THE WALL STREET JOURNAL THREE MONTHS INTO HIS BATTLE TO TURN AROUND INTERNATIONAL BUSINESS MACHINES CORP LOUIS V GERSTNER JR'S INITIAL STRATEGY IS TAKING SHAPE MR GERSTNER INHERITED ONE OF THE GREAT STRATEGIC RIDDLES IN BUSINESS HISTORY CAN BIG BLUE RULE THE WORLD AGAIN AS A CENTRALIZED GIANT OR SHOULD IT BREAK UP INTO BABY BLUES HIS SURPRISING ANSWER HE WANTS IT BOTH WAYS MR GERSTNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER IS ALREADY PUTTING THE BRAKES ON HIS PREDECESSOR JOHN AKERS'S EARLY STEPS TO DECENTRALIZE IBM HE HAS PUT HIGHLEVEL STUDIES ABOUT WAYS TO SPIN OFF IBM DIVISIONS ON THE BACK BURNER DELUGED WITH PLEAS TO BREAK UP IBM'S ONESTOPSHOPPING SALES FORCE INTO TEAMS OF PRODUCT SPECIALISTS HE BRUSHED THEM ASIDE AND AFTER YEARS OF CUTS TO THE HEADQUARTERS BUREAUCRACY HE ADDED TWO NEW SENIOR JOBS TO COORDINATE ALL OF IBM'S STRATEGY AND MARKETING AT THE SAME TIME MR GERSTNER IS PUSHING IBM'S EIGHT PRODUCT GROUPS TO BEHAVE LIKE ENTREPRENEURS AND GO HEAD TO HEAD AGAINST SPRIER NICHE RIVALS THERE'S A DITCH ON BOTH SIDES OF THE ROAD YOU CAN BE TOO DECENTRALIZED AND TOO CENTRALIZED HE TOLD IBM SHAREHOLDERS EARLIER THIS YEAR WE OUGHT TO BE ABLE TO DRIVE DOWN THE MIDDLE OF THAT ROAD RIGHT NOW IBM IS STILL STUCK IN ITS BIGGEST DITCH EVER WHEN IT REPORTS ITS SECONDQUARTER RESULTS TOMORROW IT'S EXPECTED TO TAKE A MASSIVE NEW CHARGE OF 2 BILLION OR MORE WITH SOME PREDICTIONS RUNNING AS HIGH AS 8 BILLION TO PAY FOR SHEDDING AT LEAST 50000 MORE EMPLOYEES ANALYSTS ARE ALSO BETTING TOMORROW'S NEWS WILL INCLUDE A BIG NEW CUT IN IBM'S DIVIDEND AND MORE OPERATING LOSSES FROM THE ERODING MAINFRAME COMPUTER MARKET ANTICIPATING WRETCHED NEWS INVESTORS KNOCKED IBM'S STOCK DOWN TO NEW 18YEAR LOWS LAST WEEK IT FELL 1125 FRIDAY TO 4225 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR GERSTNER HAS SAID LITTLE SO FAR ABOUT HIS TURNAROUND PLANS AND DECLINED TO DISCUSS THEM LAST WEEK BUT HE PROBABLY WILL EMERGE THIS WEEK TO DISCUSS IBM'S EXTRAORDINARY NEW CUTS AND RED INK IN ADDITION HE IS EXPECTED TO NAME CHARLES KNIGHT HEAD OF EMERSON ELECTRIC CO TO THE IBM BOARD SOON MR GERSTNER BADLY WANTS TO GET IBM'S PAIN BEHIND HIM QUICKLY BUT TOMORROW MAY NOT MARK THE END OF HIS COSTSLASHING SOME OF TOMORROW'S EXPECTED CHARGES RESULT FROM PROGRAMS MR AKERS LAUNCHED SOON AFTER MR GERSTNER ARRIVED HE ASKED HIS MANAGERS TO RECOMMEND MORE SWEEPING REDUCTIONS IN PERSONNEL AND ASSETS A MAY IBM PROSPECTUS WARNED THAT PROCESS PROBABLY WOULDN'T END UNTIL THE SECOND HALF OF THE YEAR THERE ARE FEW PARALLELS IN BUSINESS FOR MR GERSTNER'S EMERGING BOTH WAYS VISION OF IBM BUT FEW COMPANIES HAVE IBM'S PECULIAR PROBLEM ITS INDIVIDUAL PIECES ARE GETTING CLOBBERED BY LEANER SPECIALISTS SUCH AS SUN MICROSYSTEMS INC AND MICROSOFT CORP BUT THE IBM PIECES SUCH AS SOFTWARE NETWORKS AND PRINTERS ARE TOO DELICATELY INTERLINKED TO BREAK APART ENTIRELY MR GERSTNER RAN HEADLONG INTO THIS PROBLEM IN ONE OF HIS FIRST BIG STRATEGIC DECISIONS HOW TO ORGANIZE IBM'S SPRAWLING ARMY OF BLUESUITED SALESPEOPLE BY GEOGRAPHY AS IS DONE NOW OR BY PRODUCT AS MICROSOFT'S BILL GATES AND NUMEROUS OTHERS HAVE URGED THE BETTER TO COMPETE AGAINST OTHER ONEPRODUCT COMPANIES HE WANTS IT BOTH WAYS HE TOLD HIS TOP EXECUTIVES HE WANTED TO KEEP THE GEOGRAPHIC STRUCTURE BUT HE ALSO WANTED TO PLAY UP THE IMPORTANCE OF ONEPRODUCT AND INDUSTRY SPECIALISTS IN EACH SALES OFFICE HIS MESSAGE WAS SO CONFUSING INSIDE IBM THAT HE SET IT DOWN IN A JULY MEMO THAT CANDIDLY ADMITTED IBM'S COMPLEXITY THE CURRENT ORGANIZATION HE DECLARED BLUNTLY DOES NOT ALWAYS FUNCTION WELL BUT HE ADDED HE COULDN'T THINK OF AN ALTERNATIVE THAT ELIMINATES THE NEED FOR SOPHISTICATED MANAGEMENT APPROACHES AND OVERLAPPING CHAINS OF COMMAND THE BOTHWAYS APPROACH DISAPPOINTS IBM CRITICS WHO THINK THE COMPANY NEEDS RADICAL SURGERY IT IMPOSES AN OVERHEAD COST THAT THIS INDUSTRY DOESN'T SUPPORT SAYS CONSULTANT CHARLES MORRIS COAUTHOR OF THE RECENT BOOK COMPUTER WARS THE THINGS THE TOP MANAGEMENT ENDS UP FOCUSING ON ARE USUALLY OUT OF SYNCH WITH A MARKET EVOLVING SO RAPIDLY MR MORRIS SAYS THAT JOHN AKERS WHO PRESIDED OVER IBM'S TAILSPIN ALSO TRIED TO DECENTRALIZE SOME PARTS OF THE COMPANY BUT NOT OTHERS THE GERSTNER STRATEGY HE SAYS IS SIMPLY AN ARGUMENT THAT HE'S SMARTER THAN JOHN AKERS IN FACT SUPPORTERS OF MR GERSTNER MAKE MUCH THE SAME POINT PEOPLE MISUNDERSTAND WHAT WENT WRONG IF THEY THINK GERSTNER HAS TO COME UP WITH A NEW STRATEGY SAYS GERALD CZARNECKI A VETERAN BANKING COSTCUTTER WHOM MR GERSTNER RECRUITED AS HIS CHIEF OF STAFF AT IBM A LOT OF WHAT WENT WRONG WAS EXECUTION NOT STRATEGY ASSUMING MR GERSTNER'S EXECUTION IS INDEED SUPERIOR IMPOSING IT ON A DEEPLY TRADITIONBOUND COMPANY WITH 250000 EMPLOYEES AROUND THE WORLD WILL BE DIFFICULT BUT MR CZARNECKI A BLUNT ICONOCLAST WITH A TRACK RECORD OF TURNING BANKS AROUND SAYS PERSONALITY CAN PLAY AN IMPORTANT ROLE SPEAKING OF MESSRS GERSTNER AND AKERS HE SAYS THERE'S A STYLE DIFFERENCE BETWEEN THESE TWO MAYBE THAT WAS ALL THAT WAS NEEDED STYLE AND LEADERSHIP THERE ARE ALREADY SIGNS THE CULTURE IS CHANGING INSIDE IBM BOTH MR GERSTNER AND MR CZARNECKI HAVE MADE A POINT OF OCCASIONALLY WEARING BLUE SHIRTS BUCKING IBM'S WHITESHIRT TRADITION SOME LONGTIME IBM EXECUTIVES HAVE BEEN STUNNED TO SEE MR GERSTNER STRIDE ABRUPTLY OUT OF MEETINGS WITH NO SMALL TALK OR GLADHANDING MR GERSTNER WHO CAME TO IBM WITH NEXT TO NO HIGHTECH EXPERIENCE IS TAKING PAINS TO PROVE HIS COMMITMENT TO IBM'S TECHNOLOGY IN HIS FIRST DAYS HE ENTHUSED ABOUT IBM'S ROLE IN CONSULTING AND OTHER COMPUTER SERVICES THAT DON'T REQUIRE HEAVY RESEARCH COSTS BUT AT A JUNE AWARDS BANQUET FOR IBM'S TOP SCIENTISTS AND ENGINEERS HE DECLARED NO SERVICES WILL NOT SAVE IBM ADDING SIMPLY PUT IF IBM DOESN'T HAVE THE BEST TECHNOLOGY WE'RE GOING TO GO OUT OF BUSINESS ONE TECHNOLOGY AREA THAT HAS ALREADY DRAWN SPECIAL ATTENTION FROM MR GERSTNER IS THE VISION OF INFORMATION HIGHWAYS CARRYING VOICE VIDEO AND DATA AROUND THE WORLD IN APRIL MR GERSTNER CIRCULATED A FRONTPAGE WALL STREET JOURNAL STORY ABOUT AMERICAN TELEPHONE & TELEGRAPH CO'S PUSH INTO MULTIMEDIA NETWORKS AND ASKED POINTEDLY WHAT IBM WAS DOING IN THAT FIELD LAST MONTH MR GERSTNER GAVE A HIGHLEVEL STRATEGY POST TO ALAN BARATZ AN IBM SCIENTIST WHO PLAYED A KEY ROLE IN DESIGNING THE INTERNET NETWORK WIDELY USED FOR ELECTRONIC MAIL BY UNIVERSITIES AND BUSINESSES AROUND THE WORLD TO EXPLOIT THE POTENTIAL OF CLIENTSERVER COMPUTING AND DISTRIBUTED MULTIMEDIA IBM'S CUSTOMERS WANT THE FASTEST MOST ADVANCED NETWORKING TECHNOLOGY AVAILABLE MR GERSTNER STATED THIS MONTH AS IBM UNVEILED NEW NETWORK GEAR IBM WATCHERS SAID SIGNIFICANTLY THAT IT WAS MR GERSTNER'S FIRST APPEARANCE IN A NEWPRODUCT ANNOUNCEMENT 9307230185 930722 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 9307230184 930723 AT CROSS REPORTS LOSS OF 10 MILLION FOR SECOND QUARTER LINCOLN RI AT CROSS CO CITING A SLOW ECONOMIC RECOVERY REPORTED A SECONDQUARTER LOSS OF 10 MILLION OR 59 CENTS A SHARE COMPARED WITH NET INCOME OF 29 MILLION OR 17 CENTS A SHARE IN THE YEAREARLIER QUARTER THE COMPANY ALSO CUT ITS QUARTERLY DIVIDEND IN HALF TO 16 CENTS A SHARE AS A RESULT OF THE POOR RESULTS WE WERE HOPING FOR A TURN IN THE ECONOMY FOR THE LONGEST TIME SAID THE COMPANY'S CHIEF FINANCIAL OFFICER MICHAEL ELHILLO BUT IT HASN'T COME THE LOSS INCLUDES CHARGES OF 62 MILLION TO STREAMLINE PART OF THE COMPANY'S MANUFACTURING OPERATIONS AND 25 MILLION FROM THE SALE OF ITS MARK CROSS SUBSIDIARY SALES FROM CONTINUING OPERATIONS DROPPED 14 TO 373 MILLION FROM 435 MILLION THE MAKER OF WRITING INSTRUMENTS SAID DEMAND FOR ITS PRODUCTS DECLINED DURING THE FIRST HALF AS A RESULT OF A SOFT ECONOMY WORLDWIDE IN THE HALF AT CROSS HAD A LOSS OF 98 MILLION OR 58 CENTS A SHARE INCLUDING A 4 MILLION LOSS FROM DISCONTINUED OPERATIONS THAT COMPARES WITH NET OF 51 MILLION OR 30 CENTS A SHARE AFTER A LOSS FROM DISCONTINUED OPERATIONS OF 934000 IN THE YEAREARLIER PERIOD SALES DECLINED 15 TO 738 MILLION FROM 865 MILLION THE COMPANY SAID IT HAS TAKEN SEVERAL STEPS TO INCREASE EFFICIENCY AND IMPROVE PROFITABILITY CONSOLIDATING PARTS OF ITS MANUFACTURING AND DISTRIBUTION FACILITIES HERE AS PART OF ITS RESTRUCTURING PROGRAM AT CROSS ALSO SOLD MARK CROSS ITS UNPROFITABLE LEATHER GOODS OPERATIONS TO SARA LEE CORP YESTERDAY IT DISCLOSED THAT THE SALE PRICE WAS 8 MILLION DESPITE THESE MEASURES THE COMPANY SAID IT DOESN'T EXPECT A TURNAROUND IN PROFITS OR AN IMPROVEMENT IN SALES AND EARNINGS IN 1993 COMPARED WITH LAST YEAR FOR 1992 CROSS REPORTED NET OF 108 MILLION OR 64 CENTS A SHARE ON SALES OF 2004 MILLION 9307230183 930723 WHO'S NEWS MEDEX'S FINANCE CHIEF DURBIN RETIRES EARLY 2 EXECUTIVES RESIGN HILLIARD OHIO ROBERT F DURBIN 57 YEARS OLD TOOK EARLY RETIREMENT AS CHIEF FINANCIAL OFFICER OF MEDEX INC A MAKER OF MEDICAL PRODUCTS THE COMPANY SAID IT IS LOOKING FOR A SUCCESSOR MEDEX'S NEW CHIEF EXECUTIVE PHILLIP D MESSINGER ALSO SAID THOMAS P FRANK VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AND FRANCIS E GRIFFIN VICE PRESIDENT OF INTERNATIONAL DEVELOPMENT RESIGNED AS PART OF A COSTCUTTING MEASURE THE COMPANY WON'T NAME SUCCESSORS MEDEX WILL TAKE A FOURTHQUARTER CHARGE OF 700000 OR 12 CENTS A SHARE TO COVER THE CHANGES IT WILL ALSO TAKE A CHARGE OF FIVE CENTS A SHARE FOR ACCOUNTING CHANGES EXCLUDING THE CHARGES MEDEX SAID THE RESULTS FOR THE QUARTER WHICH ENDED JUNE 30 WILL BE HIGHER THAN THE 22 CENTS A SHARE OF ITS THIRD QUARTER BUT NOT HIGHER THAN THE YEARAGO 34 CENTS 9307230182 930723 MICHIGAN LEGISLATURE VOTES TO ELIMINATE 65 BILLION IN TAXES FOR SCHOOL FUNDING BY OSCAR SURIS AND LAURIE MCGINLEY STAFF REPORTERS OF THE WALL STREET JOURNAL MICHIGAN'S STATE LEGISLATURE STRUGGLING TO REFORM A TROUBLED PUBLIC SCHOOL FINANCE SYSTEM HAS VOTED TO ELIMINATE 65 BILLION IN SCHOOL PROPERTY TAXES OUTRIGHT WITHOUT INSTALLING NEW MEASURES FOR FINANCING PUBLIC EDUCATION BESIDES CAUSING AN UPROAR HERE THE MOVE IS GETTING NATIONAL ATTENTION FOR ITS SHEER BOLDNESS IT'S AMAZING TO ME SAID BRIAN ROHERTY EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS I'VE NEVER HEARD OF ANYTHING LIKE IT THE ACTION WHICH STUNNED TEACHERS PARENTS AND EVEN SOME LEGISLATORS IS AIMED AT FORCING STATE AND LOCAL GOVERNMENTS TO COME UP WITH A MORE EQUITABLE AND POLITICALLY PALATABLE WAY OF PAYING FOR PUBLIC EDUCATION THE LEGISLATURE'S MOVE IS A VICTORY FOR REPUBLICAN GOV JOHN ENGLER WHO PLANS TO SIGN THE BILL AS SOON AS POSSIBLE HE AND HIS SUPPORTERS IN THE LEGISLATURE HAVE SPENT TWO YEARS TRYING TO FORCE THE ISSUE ON SCHOOL PROPERTY TAXES ONLY TO HAVE COMPLEX PROPOSALS FOR NEW FINANCING MECHANISMS VOTED DOWN AT THE POLLS IT'S A DEBATE THAT HAS BEEN LONG OVERDUE SAID GOV ENGLER WHO PLANS TO PRESS FOR REFORMS THAT WOULD NOW FORCE MICHIGAN'S SCHOOL DISTRICTS TO DEAL WITH ISSUES SUCH AS HEALTH INSURANCE FOR TEACHERS AND SCHOOL CHOICE BUT THERE IS A RISK TO THE LEGISLATURE'S GAMBIT THAT SCHOOL DISTRICTS ACROSS MICHIGAN WILL BE LEFT WITHOUT FUNDING COME NEXT SUMMER WHEN THE MEASURE ELIMINATING THE CURRENT SYSTEM OF SCHOOL PROPERTY TAXES WOULD GO INTO EFFECT MOREOVER LEGISLATORS SCHOOL DISTRICTS AND PARENTS FACE AN UNPOPULAR LIST OF ALTERNATIVES THESE INCLUDE HIGHER INCOME TAXES AND SALES TAXES AND NEW TAXES ON CIGARETTES AND SERVICES SOME OF WHICH WOULD REQUIRE VOTER APPROVAL WE HAVE CREATED THE PROBLEM YET NOBODY KNOWS HOW WE ARE GOING TO GET OUT OF IT SAID REP LYNN JONDAHL A DEMOCRAT WHO OPPOSED THE MEASURE WHICH PASSED BY WIDE MARGINS WEDNESDAY IN THE STATE SENATE AND HOUSE GOV ENGLER AND HIS SUPPORTERS MAINTAIN THAT NOT ALL OF THE 65 BILLION IN REPEALED TAX REVENUE WILL HAVE TO BE REPLACED ARGUING THAT THE FOCUS WILL NOW BE ON CUTTING COSTS RATHER THAN ON FINDING WAYS TO PAY RISING BILLS 9307230181 930723 WHO'S NEWS BROWNFORMAN'S CHIEF IS SUCCEEDED BY BROTHER LOUISVILLE KY OWSLEY BROWN II BROWNFORMAN CORP PRESIDENT WAS NAMED CHIEF EXECUTIVE OF THE MAKER OF ALCOHOLIC BEVERAGES AND CONSUMER PRODUCTS MR BROWN 50 YEARS OLD SUCCEEDS HIS BROTHER W L LYONS BROWN JR 56 WHO WILL REMAIN CHAIRMAN SEPARATELY THE COMPANY FORECAST A SUBSTANTIAL EARNINGS DECLINE IN ITS FIRST QUARTER ENDING JULY 31 BECAUSE OF AN UNUSUALLY STRONG YEARAGO QUARTER MARKED BY ADVANCE SHIPMENTS THAT RAISED PROFITS 14 CENTS A SHARE IN ADDITION TO THE LOWER RESULTS THE COMPANY EXPECTS TO RECORD A CHARGE FOR AN ACCOUNTING CHANGE OF 103 A SHARE HOWEVER BROWNFORMAN PROJECTED MODEST EARNINGS GROWTH IN FISCAL 1994 IN THE YEARAGO QUARTER BROWNFORMAN HAD A PROFIT OF 352 MILLION OR 127 A SHARE 9307230180 930723 WHO'S NEWS QVC NETWORK INC QVC NETWORK INC WEST CHESTER PA THIS CABLE CHANNEL OPERATOR NAMED FRED SIEGEL 39 YEARS OLD SENIOR VICE PRESIDENT MARKETING SUCCEEDING KATHLEEN HOLLIDAY WHO LEFT THE COMPANY MR SIEGEL HAD BEEN EXECUTIVE VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR AT KETCHUM ADVERTISING IN PHILADELPHIA 9307230179 930723 WHO'S NEWS JOHNSON & HIGGINS JOHNSON & HIGGINS NEW YORK THOMAS J MCGOWAN WAS NAMED CHIEF EXECUTIVE OFFICER OF SHIPOWNERS CLAIMS BUREAU INC A UNIT OF THIS INSURANCE BROKER MR MCGOWAN 51 YEARS OLD CONTINUES AS PRESIDENT AND CHIEF OPERATING OFFICER HE SUCCEEDS JOHN H CASSEDY 62 WHO RETIRED SHIPOWNERS CLAIMS BUREAU PROVIDES MARINE INSURANCE CLAIMS SERVICES FOR SHIPOWNER GROUPS INDIVIDUALS AND CHARTERERS 9307230178 930723 NUCLEAR REGULATORS PROPOSE 300000 FINE FOR NEW YORK PLANT NEW YORK THE NUCLEAR REGULATORY COMMISSION PROPOSED TO FINE THE NEW YORK POWER AUTHORITY 300000 CITING INATTENTION TO DETAIL AT THE INDIAN POINT 3 NUCLEAR POWER PLANT IN BUCHANAN NY THE AUTHORITY SAID IT WOULDN'T CONTEST THE FINE ITS FOURTH PENALTY IN ABOUT 15 MONTHS INVOLVING PROBLEMS AT THE BELEAGUERED PLANT WHICH HAS BEEN OUT OF SERVICE SINCE FEB 27 SINCE MAY 1992 THE POWER AUTHORITY HAS PAID 762500 IN FINES FOR PROBLEMS AT INDIAN POINT 3 AND AN ADDITIONAL 300000 IN FINES FOR PROBLEMS AT ITS FITZPATRICK PLANT IN SCRIBA NY THE NRC SAID THE PROPOSED FINE COULD HAVE BEEN SIGNIFICANTLY HIGHER BUT IT RECOGNIZED THAT THE POWER AUTHORITY HAD MADE SIGNIFICANT MANAGEMENT CHANGES AND TAKEN STEPS TO IMPROVE THE PLANT'S OPERATIONS IN THE MOST RECENT CASE THE NRC ALLEGED THAT THE NEW YORK POWER AUTHORITY A STATECHARTERED CORPORATION FAILED TO ENSURE THAT CERTAIN BACKUP SYSTEMS WERE OPERATING FAILED TO ENSURE THAT CERTAIN WATER AND CONTROLLING LEVELS WERE BEING MEASURED DURING MAINTENANCE AND TESTING OF THE WATER COOLING SYSTEM AND VIOLATED SEVEN OPERATING RULES AND PROCEDURES DURING LATE 1992 AND EARLY 1993 IN 1992 THE POWER AUTHORITY HAD ABOUT 13 BILLION IN REVENUE BUT PLACED ONLY 576 MILLION IN ITS RESERVES IT AVERTED ITS FIRST NET OPERATING LOSS SINCE 1958 THANKS LARGELY TO DEFERRED INCOME FROM CONSTRUCTION PROJECTS 9307230177 930723 WHO'S NEWS RODMAN & RENSHAW CAPITAL GROUP INC RODMAN & RENSHAW CAPITAL GROUP INC CHICAGO PETER J SCHILD 45 YEARS OLD AND JONATHAN KANTOR 38 WERE ELECTED DIRECTORS EXPANDING THE BOARD TO 11 MEMBERS MR SCHILD HAS BEEN THE COMPANY'S CHIEF FINANCIAL OFFICER SINCE 1992 MR KANTOR IS A PARTNER WITH THE NEW YORK LAW FIRM SHEA & GOULD 9307230176 930723 PEPSICO UNIT TO BUY STAKE HELD BY VOLTAS IN INDIAN JOINT VENTURE SPECIAL TO THE WALL STREET JOURNAL NEW DEHLI PEPSICO INC'S PEPSICOLA INTERNATIONAL UNIT SAID IT AGREED TO BUY VOLTAS LTD'S STAKE IN A JOINT FOOD AND BEVERAGE VENTURE IN INDIA TERMS WEREN'T DISCLOSED IN A NEWS RELEASE PEPSI SAID THE AGREEMENT WOULD INCREASE ITS STAKE IN THE VENTURE TO 92 FROM ITS CURRENT 51 PUNJAB AGRO INDUSTRIES CORP HOLDS THE REMAINING 8 STAKE THE COMPANY SAID THE TRANSACTION IS SUBJECT TO APPROVAL BY THE BOARDS OF PEPSICO AND VOLTAS A TATA GROUP COMPANY PEPSICO IS BASED IN PURCHASE NY AS PART OF THE DEAL PEPSI SAID IT WILL GAIN CONTROL OF THE VENTURE'S MANUFACTURING OPERATIONS IN BOMBAY AND GUJARAT CURRENTLY FRANCHISED TO VOLTAS PEPSI SAID THE BUYOUT IS THE FIRST STEP IN ITS PLAN TO EXPAND AND STRENGTHEN THE VENTURE WHICH ALSO INCLUDES A FRUITPROCESSING AND AGRICULTURALEXPORT BUSINESS THE COMPANY SAID IT PLANS TO CREATE A JOINT VENTURE WITH INDIAN ORGANIC CHEMICALS LTD TO PRODUCE AND EXPORT RESIN USED IN THE MANUFACTURE OF PLASTIC BEVERAGE PACKAGING PEPSI SAID IT WILL USE THE RESIN WITHIN ITS INTERNATIONAL SYSTEM THE COMPANY SAID IT LAUNCHED ITS LINE OF SOFT DRINKS IN INDIA IN MAY 1990 THE COMPANY SAID CASE SALES GREW 33 IN 1992 AND ROSE 24 IN THE FIRST HALF OF 1993 9307230175 930723 STAR TV'S DOMINANCE OF ASIA'S AIRWAVES IS SHAKEN BY NEW SATELLITES TECHNOLOGY BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG STAR TV'S AGGRESSIVE STYLE HAS HELPED MAKE IT ASIA'S DOMINANT SATELLITE TELEVISION BROADCASTER IN THE 2 1/2 YEARS SINCE IT WAS CREATED BUT STAR'S NEARMONOPOLY OVER REGIONAL SATELLITE CAPACITY IS COMING TO AN END ABOUT A DOZEN SUCH SATELLITES ARE DUE TO BE LAUNCHED IN THE NEXT TWO YEARS ADVANCES IN TECHNOLOGY PROMISE TO INCREASE CAPACITY AND DRIVE DOWN COSTS PROVIDING ACCESS TO NEARLY ANYONE WHO WANTS IT AND THERE ARE PLENTY WHO DO RUPERT MURDOCH'S NEWS CORP TURNER BROADCASTING SYSTEM INC AND UNITS OF TIME WARNER INC AND CAPITAL CITIES/ABC INC AMONG OTHERS ARE LOOKING AT WAYS TO MAXIMIZE MARKETS FOR THEIR PROGRAMS WITHOUT GOING THROUGH STAR AT STAKE ARE THE RIGHTS TO DISTRIBUTE TELEVISION PROGRAMMING TO NEARLY TWOTHIRDS THE WORLD'S POPULATION AS US CABLE COMPANIES SUCH AS TELECOMMUNICATIONS INC AND TIME WARNER FACE INCREASING REGULATION AND STAGNATION IN THEIR HOME MARKET ASIA'S MASSIVE UNDERDEVELOPED TELEVISION INDUSTRY BECKONS POWERFULLY STAR CONTROLLED BY HONG KONG BILLIONAIRE LI KASHING BEAMS TELEVISION PRO GRAMS VIA SATELLITE INTO 113 MILLION HOMES ACROSS ASIA AND THE MIDDLE EAST BUT STAR IS VULNERABLE TO EMERGING COMPETITION ON SEVERAL FRONTS MOST IMPORTANT IT NEEDS PROGRAM SUPPLIERS FOR ITS FOURCHANNEL PAYTELEVISION SERVICE DUE TO BE LAUNCHED IN LESS THAN THREE MONTHS IN THE NEXT 18 MONTHS STAR PLANS TO EXPAND THE SERVICE TO UP TO 20 CHANNELS SO FAR STAR HASN'T COMPLETED AGREEMENTS WITH A SINGLE SUPPLIER RICHARD LI STAR'S BRASH FOUNDER AND THE SON OF LI KASHING SEEMS UNFAZED IN AN INTERVIEW THE 26YEAROLD SAID THE COMPANY WILL ANNOUNCE ITS PROGRAMMING SUPPLIERS BY EARLY AUGUST THE COMPANY IS MAKING PROGRESS EXECUTIVES SAY RECENTLY STAR'S PARENT HUTCHVISION LTD OF HONG KONG SIGNED MEMORANDUMS OF UNDERSTANDING WITH FIVE HOLLYWOOD STUDIOS AND THREE INTERNATIONAL NEWS BROADCASTERS TO PROVIDE PROGRAMMING FOR STAR'S PAYTELEVISION SERVICE AN EXECUTIVE CLOSE TO THE NEGOTIATIONS SAID THE COMPANIES ARE WALT DISNEY CO'S WALT DISNEY PICTURES & TELEVISION MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INTERNATIONAL SONY CORP'S COLUMBIA PICTURES AND COLUMBIA'S TRISTAR PICTURES AFFILIATE AND METROGOLDWYNMAYER INC'S MGM INTERNATIONAL GENERAL ELECTRIC CO'S NATIONAL BROADCASTING INC LONDONBASED PEARSON PLC AND MITSUI & CO OF JAPAN AN EXECUTIVE SAID STAR ALSO HAS SIGNED AN AGREEMENT WITH GOLDEN HARVEST GROUP TO SUPPLY PROGRAMMING FOR ITS PLANNED CHINESELANGUAGE CHANNEL ACCORDING TO PEOPLE FAMILIAR WITH THE DEAL MEDIA ANALYSTS IN HONG KONG SAY THE AGREEMENTS IF COMPLETED WOULD PROVIDE STAR WITH THE SOFTWARE IT NEEDS TO DRIVE ITS PAYTELEVISION SERVICE BUT STAR HAS FAILED TO WOO A POWERFUL POTENTIAL GROUP OF SUPPLIERS A CONSORTIUM OF CABLE NEWS NETWORK ESPN HBO AND HONG KONG BROADCASTER TELEVISION BROADCASTS LTD THE STICKING POINTS SOME SAY CENTER ON STAR'S DEMAND FOR A SIZABLE SHARE OF PROFITS AND ITS INSISTENCE ON CONTROLLING MARKETING OF THE CHANNELS THE DANGER IS THAT THE GROUP COULD PROVE TO BE A TOUGH RIVAL IF NO DEAL CAN BE STRUCK RICHARD LI IS COY WHEN QUIZZED ABOUT THE FAILURE TO REACH AGREEMENT WITH THE CONSORTIUM MAYBE WE BELIEVE THAT FOR THE AMOUNT OF WORK WE'VE PUT IN AND WHAT WE'VE ESTABLISHED AS A PLATFORM THAT SOMEONE NEEDS TO PAY A PRICE OF ENTRY TO US HE SAYS AND MAYBE THEY THINK IT'S A BIT EXPENSIVE IN AN EFFORT TO LURE POTENTIAL RIVALS INTO ITS CAMP STAR IS PREPARING TO INCREASE ITS IMPRESSIVE SATELLITE CAPACITY IN ADDITION TO THE 11 TRANSPONDERS OR TRANSMISSION CHANNELS IT CONTROLS ON THE ASIASAT SATELLITE IT HAS OPTIONS TO LEASE EIGHT ON ASIASAT 2 DUE TO BE LAUNCHED LATE NEXT YEAR SHOULD STAR EXERCISE ITS OPTIONS ITS BROADCAST REACH WOULD GROW TO 53 COUNTRIES FROM 38 PEOPLE CLOSE TO STAR SAY IT ALSO HAS RESERVED 20 TRANSPONDERS ON ANOTHER SOONTOBELAUNCHED REGIONAL SATELLITE WITH A BROADCAST AREA SIMILAR TO ASIASAT 2 STAR SAYS IT PLANS TO USE THE INCREASED CAPACITY ALONG WITH A NEW TECHNOLOGY THAT WILL ALLOW IT TO SQUEEZE FOUR TO 10 EXTRA CHANNELS ONTO EACH TRANSPONDER THAT WOULD GIVE CABLE OPERATORS IN DIFFERENT TIME ZONES A VARIETY OF START TIMES AND LANGUAGE TRACKS BUT MOST INDUSTRY EXECUTIVES SAY STAR IS SIMPLY TRYING TO GRAB AS MUCH CAPACITY AS POSSIBLE TO FORCE RELUCTANT PROGRAMMERS INTO ITS ARMS RICHARD LI DENIES STAR IS TYING UP CAPACITY IT CAN'T USE WE TAKE AS MUCH FOOD AS WE CAN EAT HE SAYS AND WE NEED TO EAT WE NEED THOSE TRANSPONDERS BUT OTHER SENIOR STAR EXECUTIVES SAY PRIVATELY THAT KEEPING A TIGHT GRIP ON SATELLITE CAPACITY IN THE REGION IS A KEY TO THE COMPANY'S STRATEGY WE WANT TO CONTROL THE SKIES SAYS ONE STAR MAY SOON HAVE A NEW WEAPON IN ITS BATTLE FOR THE SKIES INDUSTRY EXECUTIVES SAY THEY BELIEVE THAT CHEUNG KONG HOLDINGS LTD A HONG KONGBASED COMPANY CONTROLLED BY LI KASHING HAS FORMED OR IS ABOUT TO FORM A JOINT VENTURE WITH APT SATELLITE CO OF HONG KONG TO BUY AND LAUNCH THE APSTAR 2 SATELLITE RICHARD LI REFUSES TO COMMENT STAR'S STRATEGY COULD BACKFIRE HOWEVER BY FORCING PROGRAMMERS UNWILLING TO MEET ITS TERMS EITHER ONTO OTHER SATELLITES OR INTO THE SATELLITE BUSINESS THEMSELVES BOTH TURNER BROADCASTING SYSTEMS AND NEWS CORP HAVE BEGUN INVESTIGATING THESE OPTIONS PEOPLE CLOSE TO THEM SAY SOME COMPETITORS CHARGE THAT STAR HAS LITTLE TO OFFER PROGRAM SUPPLIERS OTHER THAN CAPACITY THAT'S WHY THEY'RE SO KEEN TO LOCK UP SPACE ON VARIOUS SATELLITES SAYS SK FUNG GENERAL MANAGER OF THE INTERNATIONAL ARM OF HONG KONG'S TELEVISION BROADCASTS LTD THAT'S WHERE THEY SEE THEIR MARKETING POWER RICHARD LI SAYS A BIGGER ADVANTAGE IS STAR'S RELATIONSHIP WITH CABLE OPERATORS ON THE GROUND IF WE DIDN'T UNDERSTAND THE GROUND HE SAYS THEN WE WOULD NOT BE IN 11 MILLION HOMES NOW BUT STAR DOESN'T CONTROL THE CABLE OPERATORS THAT CARRY ITS CHANNELS STAR SAYS 92 OF ITS AUDIENCE RECEIVE ITS FIVE FREE CHANNELS VIA SMALL UNLICENSED CABLE SYSTEMS STRUNG UP BY INDIVIDUAL ENTREPRENEURS WHO CHARGE THEIR SUBSCRIBERS FOR STAR PROGRAMMING BUT MOST OF THE SYSTEMS CANNOT RECEIVE THE MORE SOPHISTICATED SIGNALS STAR SAYS IT WILL USE TO TRANSMIT ITS PAYTELEVISION CHANNELS IN A BIG VICTORY STAR RECENTLY SIGNED AN AGREEMENT GIVING IT THE EXCLUSIVE RIGHT TO DISTRIBUTE ENGLISHLANGUAGE PROGRAMMING THROUGH HONG KONG'S FORTHCOMING CABLE SYSTEM BUT STAR DOESN'T HAVE SIMILAR AGREEMENTS ELSEWHERE AND GETTING THEM IS LIKELY TO BE VERY DIFFICULT STAR HAS A BIG ADVANTAGE OVER WOULDBE RIVALS ITS FIVE CHANNELS STAR PLANS TO HARNESS THE CHANNELS WHICH IT SAYS REACH SOME 45 MILLION PEOPLE TO PROMOTE ITS PAYTELEVISION SERVICE 9307230174 930723 IRI SAYS IT WILL SELL ITS STEELMAKING UNIT RULES OUT LIQUIDATION SPECIAL TO THE WALL STREET JOURNAL MILAN ROMANO PRODI PRESIDENT OF THE ITALIAN STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE IRI RULED OUT THE POSSIBILITY OF A LIQUIDATION OF ILVA SPA AND CONFIRMED PLANS THAT IRI WILL SELL ITS LOSSMAKING STEEL CONCERN IT'S TO BE EXCLUDED THAT ILVA WILL BE LIQUIDATED MR PRODI TOLD A CONFERENCE IN BOLOGNA ON THURSDAY HE SAID IRI'S BOARD DECIDED TO SPLIT ILVA INTO TWO COMPANIES ONE SPECIALIZED IN REGULAR FLAT STEEL PRODUCTS WITH PLANTS IN TARANTO AND NOVI LIGURI AND THE SECOND FOCUSED IN SPECIALTY STEELS WITH ITS MAIN OPERATING PLANT IN TERNI THE TWO WILL CREATE A NEW COMPANY THAT WILL OWN THE REMAINDER OF ILVA'S ASSETS WITH THE EXCEPTION OF ILVA'S PLANT AT DALMINE IN NORTHERN ITALY WHICH WILL BE SOLD SEPARATELY MR PRODI SAID THE RESTRUCTURING IS AIMED AT ACCELERATING ILVA'S PRIVATIZATION MR PRODI ALSO SAID THAT BRITISH MERCHANT BANK BARCLAYS DE ZOETE WEDD HAD BEEN HIRED BY IRI TO SCAN THE MARKET FOR PROSPECTIVE BUYERS OF ILVA'S ASSETS MR PRODI SAID THE NEW RESTRUCTURING PLAN WAS IN LINE WITH INDICATIONS FROM THE EUROPEAN COMMUNITY COMMISSION WHICH HAD REJECTED AN EARLIER VERSION OF ILVA'S RESTRUCTURING PLAN 9307230171 930723 BUSINESS BRIEF BOOTS CO GROUP SALES AND CASH FLOW ARE STRONG IN FISCAL YEAR BOOTS CO SAID OVERALL GROUP SALES ARE UP AND CASH FLOW IS STRONG IN ITS CURRENT FINANCIAL YEAR THE UK RETAILER AND DRUG MANUFACTURER ALSO ANNOUNCED THE SALE OF ITS FRENCH RETAIL SUBSIDIARY BHYS TO THE PERFUME RETAILER ALTAMIR FOR 360 MILLION FRENCH FRANCS 621 MILLION THE PRICE INCLUDES 182 MILLION FRANCS OF DEBT AT ITS ANNUAL GENERAL MEETING BOOTS REPORTED OVERALL GROUP SALES ROSE 77 FROM MARCH TO THE END OF JUNE WHICH IS ITS FISCAL FIRST QUARTER THE COMPANY DIDN'T PROVIDE ACTUAL SALES FIGURES CHAIRMAN CHRISTOPHER BENSON PREDICTED RISING SALES VOLUME AND PROFITS IN ITS MAIN DRUGSTORE DIVISION WHATEVER MAY HAPPEN IN THE MARKETPLACE BOOTS' THREE PHARMACEUTICALS UNITS EACH SHOWED SUBSTANTIAL SALES GROWTH IN THE QUARTER 9307230170 930723 BUSINESS BRIEF TOYOBO CO TWO FACTORIES TO BE CLOSED AND WORKERS TRANSFERRED JAPAN'S TOYOBO CO A LEADING TEXTILE MAKER WILL CLOSE TWO COTTONSPINNING FACTORIES IN MARCH IN A FURTHER BID TO COPE WITH THE ECONOMY'S SLUGGISHNESS AND INCREASE IN COMPETITION FROM LOWPRICED IMPORTS FROM SOUTHEAST ASIA A COMPANY SPOKESMAN SAID IN TOKYO TOYOBO DOESN'T INTEND TO LAY OFF ANY OF THE 470 WORKERS AT THE AKO PLANT IN HYOGO PREFECTURE AND THE TADAOKA PLANT IN OSAKA THE SPOKESMAN SAID THEY WILL BE TRANSFERRED TO OTHER PLANTS OR AFFILIATES HE SAID IN JUNE 1992 TOYOBO CLOSED A SPINNING FACTORY IN NAGANO PREFECTURE BRINGING THE TOTAL NUMBER OF SPINNING AND WEAVING PLANTS TO THE PRESENT 12 THESE FACTORIES MAKE LOWPRICED GOODS THAT ARE VULNERABLE TO COMPETITION FROM OVERSEAS SAID THE SPOKESMAN ADDING THAT THE TWO FACTORIES SET FOR CLOSURE ARE IN THE RED 9307230169 930723 TECHNOLOGY REGENERON STAKE GOES TO GLAXO IN VENTURE TARRYTOWN NY REGENERON PHARMACEUTICALS INC SAID BRITISH DRUG CONCERN GLAXO HOLDINGS PLC INVESTED 10 MILLION IN REGENERON STOCK AND WITH REGENERON WILL DEVELOP DRUGS FOR ALZHEIMER'S DISEASE AND OTHER DISORDERS GLAXO PURCHASED 500000 UNREGISTERED SHARES OF REGENERON COMMON STOCK OR 31 OF ITS 159 MILLION SHARES OUTSTANDING IN ADDITION GLAXO WILL MAKE RESEARCH PAYMENTS TO REGENERON FOR EACH PRODUCT AS CERTAIN DEVELOPMENT MILESTONES ARE REACHED IN OVERTHECOUNTER TRADING YESTERDAY REGENERON CLOSED AT 20 UP 25 CENTS A SHARE A BIOTECHNOLOGY CONCERN SPECIALIZING IN DRUGS FOR NEUROLOGICAL DISORDERS REGENERON SAID THE RESEARCH WILL FOCUS ON DEVELOPING A MOLECULAR UNDERSTANDING OF NERVECELL GROWTH FACTORS THE FACTORS CALLED NEUROTROPHINS STIMULATE GROWTH OF NERVE CELLS AND COULD BE USED TO TREAT DISEASES SUCH AS ALZHEIMER'S PARKINSON'S AND OTHERS THAT CAUSE NERVE CELLS TO DIE REGENERON SAID THE COMPANIES WILL CONDUCT RESEARCH TO CREATE ORAL DRUGS CONTAINING NEUROTROPHINS ONCE AN AGENT IS SELECTED FOR DEVELOPMENT GLAXO WILL CONDUCT INITIAL TESTING IN HUMANS AT ITS OWN EXPENSE BUT FURTHER DEVELOPMENT ALSO TO BE DONE BY GLAXO WILL FINANCED BY BOTH PARTIES IF A PRODUCT REACHES THE MARKET THE COMPANIES WILL SPLIT THE INCOME EQUALLY AND GLAXO WILL MANUFACTURE THE PRODUCT SEPARATELY REGENERON SAID IT RECEIVED A SECOND PATENT FOR A BRAINDERIVED NEUROTROPHIC FACTOR JOINTLY DEVELOPED WITH AMGEN INC AND POTENTIALLY APPLICABLE IN THE TREATMENT OF AMYOTROPHIC LATERAL SCLEROSIS OR LOU GEHRIG'S DISEASE AMGEN A BIOTECHNOLOGY COMPANY SAID THE COMPANIES HAVE APPLIED TO THE FOOD AND DRUG ADMINISTRATION TO BEGIN TESTING THE AGENT ON HUMANS 9307230168 930723 BUSINESS BRIEF BROKEN HILL PROPRIETARY CO DRILLING ACTIVITY SUSPENDED AT WESTERN AUSTRALIA WELL BROKEN HILL PROPRIETARY CO A MINERALS STEEL AND PETROLEUM GROUP THAT IS AUSTRALIA'S LARGEST COMPANY SAID IT WILL SUSPEND ACTIVITY AT ITS WEST MUIRON5 WELL OFF THE COAST OF WESTERN AUSTRALIA WHERE EARLIER TESTING FOUND BOTH OIL AND GAS BHP SAID IN A STATEMENT THAT A SECOND ROUND OF TESTING AT THE WELL FLOWED GAS AT A DAILY RATE OF 168 MILLION STANDARD CUBIC FEET HOWEVER THE TESTING DIDN'T RECOVER ANY OIL OR OTHER LIQUID HYDROCARBONS THE COMPANY SAID IT IS RETRIEVING TESTING EQUIPMENT IN PREPARATION FOR SUSPENDING THE WELL WITHOUT FURTHER TESTING AT THIS STAGE BHP OWNS 714 OF A JOINT VENTURE EXPLORING FOR OIL AND NATURAL GAS OFF THE WEST AUSTRALIAN COAST WITH AMPOLEX LTD HOLDING THE REMAINING 286 A BHP SPOKESWOMAN SAID THE JOINT VENTURERS WILL RETURN TO CONDUCT FURTHER TESTING AT WEST MUIRON5 SOMETIME IN THE FUTURE WHILE THEY FURTHER ANALYZE THE RESULTS OBTAINED FROM ACTIVITY AT THE WELL IT ISN'T DEAD YET BUT WE'LL LOOK TO MAYBE DO SOME MORE SEISMIC TESTING BEFORE ANY DECISIONS ARE MADE SHE ADDED 9307230167 930723 WHO'S NEWS MARTIN MARIETTA CORP MARTIN MARIETTA CORP BETHESDA MD JOSEPH D ANTINUCCI MICHAEL F CAMARDO AND JAMES W MCANALLY WERE NAMED CORPORATE VICE PRESIDENTS MR CAMARDO 51 YEARS OLD IS PRESIDENT OF THE DEFENSE CONTRACTOR'S NEW SERVICES GROUP MR ANTINUCCI 53 IS PRESIDENT OF MARTIN MARIETTA'S ELECTRONIC AND MISSILE SYSTEMS DIVISION AND MR MCANALLY 56 IS PRESIDENT OF THE ASTRONAUTICS DIVISION 9307230166 930723 WHO'S NEWS STANDARD MOTOR PRODUCTS INC STANDARD MOTOR PRODUCTS INC LONG ISLAND CITY NY MICHAEL J BAILEY 40 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE OF THIS AUTO PARTS MAKER SUCCEEDING MARK S CHANKO 65 WHO IS RETIRING MR BAILEY HAD BEEN CHIEF FINANCIAL OFFICER OF BREED TECHNOLOGIES INC BOONTON TOWNSHIP NJ 9307230165 930723 WHO'S NEWS CORPORATE SOFTWARE INC CORPORATE SOFTWARE INC CANTON MASS MARY LOU DYMSKI WAS APPOINTED CHIEF FINANCIAL OFFICER OF THIS SOFTWARE DISTRIBUTION CONCERN MS DYMSKI WAS PREVIOUSLY INFORMATION TECHNOLOGY CONTROLLER AT INTEL CORP IN HER NEW POST SHE SUCCEEDS DOUG GREENLAW WHO WAS NAMED VICE PRESIDENT OF OPERATIONS 9307230164 930723 BUSINESS BRIEF BANCO SANTANDER CONSOLIDATED NET ROSE 92 FOR THE FIRST HALF OF 1993 BANCO SANTANDER ONE OF SPAIN'S FIVE LEADING COMMERCIAL BANKS SAID NET CONSOLIDATED PROFIT ROSE 92 IN THE FIRST SIX MONTHS OF 1993 TO 4716 BILLION PESETAS 3521 MILLION FROM 4319 BILLION PESETAS IN THE FIRST SIX MONTHS OF 1992 THE RISE IN PROFIT WAS POSSIBLE THANKS TO AN INCREASE IN THE BANK'S CLIENT BASE ITS INTERNATIONAL DIVERSIFICATION THE MAINTENANCE OF MARGINS IN TRADITIONAL OPERATIONS AND THE EXCELLENT RESULTS OBTAINED IN TREASURY AND CAPITAL MARKET AREAS BOTH INSIDE AND OUTSIDE OF SPAIN SAID SANTANDER CHAIRMAN EMILIO BOTIN IN A LETTER TO SHAREHOLDERS GROSS INTEREST INCOME CLIMBED 38 IN THE FIRST SIX MONTHS TO 43294 BILLION PESETAS FROM 31429 BILLION PESETAS A YEAR EARLIER SANTANDER SAID IN A STATEMENT HOWEVER INTEREST EXPENSES OUTPACED THE GROWTH IN INCOME SURGING 46 TO 31671 BILLION PESETAS FROM 21673 BILLION PESETAS IN THE SAME PERIOD A YEAR EARLIER 9307230163 930723 WHO'S NEWS SULCUS COMPUTER CORP SULCUS COMPUTER CORP GREENSBURG PA DALLAS TALLEY 60 YEARS OLD RESIGNED AS CHIEF OPERATING OFFICER A JOB HE TOOK EARLIER THIS YEAR HE WILL BECOME A CONSULTANT TO THE DEVELOPER OF AUTOMATED SYSTEMS THE COMPANY DOESN'T PLAN TO NAME A SUCCESSOR SEPARATELY SULCUS NAMED FRANK MORRISROE 39 FORMER EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING AS PRESIDENT OF SULCUS HOSPITALITY GROUP ITS LARGEST UNIT HE SUCCEEDS PAUL HAMMAR 50 WHO WILL BECOME SULCUS'S MANAGING DIRECTOR FOR SPECIAL PROJECTS 9307230162 930723 BELLSOUTH'S NET FELL 18 TO 3777 MILLION IN THE SECOND PERIOD ATLANTA BELLSOUTH CORP REPORTED AN 18 DROP IN SECONDQUARTER PROFIT MAINLY REFLECTING A ONETIME CHARGE OF 55 MILLION OR 11 CENTS A SHARE FOR REFINANCING OVER 13 BILLION IN DEBT THE BABY BELL SAID NET INCOME WAS 3777 MILLION OR 76 CENTS A SHARE DOWN FROM 4585 MILLION OR 94 CENTS A SHARE A YEAR AGO EARNINGS IN THE 1992 QUARTER INCLUDED A ONETIME GAIN OF 329 MILLION OR SEVEN CENTS A SHARE RELATED TO A REGULATORY SETTLEMENT EXCLUDING BOTH QUARTERS' CHARGES EARNINGS WERE FLAT AT 87 CENTS A SHARE BELLSOUTH SAID IT WOULD SAVE NEARLY 500 MILLION IN INTEREST EXPENSE OVER THE LIVES OF THE NEW DEBT ISSUES REVENUE ROSE 24 TO 391 BILLION FROM 382 BILLION THE 1992 PERIOD INCLUDED 53 MILLION IN REVENUE RELATED TO THE ONETIME REGULATORY SETTLEMENT TELEPHONE ACCESS LINES ROSE 34 ON AN ANNUAL BASIS TO ALMOST 19 MILLION WHILE THE COMPANY'S CELLULAR CUSTOMERS IN THE US ROSE 38 TO 13 MILLION FROM A YEAR AGO IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BELLSOUTH CLOSED AT 55875 DOWN 375 CENTS SEPARATELY SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP SAID NET INCOME DROPPED 31 TO 409 MILLION OR 64 CENTS A SHARE FROM 422 MILLION OR 67 CENTS A SHARE THE BUSINESS CLIMATE AND RESULTS OF OUR RATE CASE ARE DISAPPOINTING THE COMPANY SAID EARLIER THIS MONTH STATE REGULATORS AWARDED THE COMPANY A 375 MILLION OR 35 REVENUE INCREASE WELL SHORT OF THE COMPANY'S 1593 MILLION OR 147 REQUESTED BOOST OVERALL REVENUE ROSE 14 TO 4107 MILLION FROM 4049 MILLION WHILE REVENUE FOR THE SOUTHERN NEW ENGLAND TELEPHONE UNIT ROSE 24 TO 360 MILLION MAINLY BECAUSE OF A 16 INCREASE IN ACCESS LINES AND A 6 INCREASE IN INTERSTATE NETWORKACCESS REVENUE SHARES OF THE COMPANY WHICH IS BASED IN NEW HAVEN CONN CLOSED AT 3450 DOWN 50 CENTS IN BIG BOARD COMPOSITE TRADING 9307230161 930723 BUSINESS BRIEF CITIC PACIFIC LTD BEIJING INVESTMENT ARM UNIT JOINS TUNNEL CONSORTIUM CITIC PACIFIC LTD WILL PARTICIPATE ALONG WITH ITS CONTROLLING SHAREHOLDERS IN A CONSORTIUM BUILDING HONG KONG'S NEWEST CROSSHARBOR TUNNEL THE COLONY'S LEGISLATURE GRANTED A 30YEAR CONTRACT TO THE CONSORTIUM AND ALLOWED IT TO BEGIN WORK IN AUGUST ON THE TUNNEL WHICH IS RELATED TO HONG KONG'S NEW AIRPORT THE PROJECT'S COST IS ESTIMATED AT HK76 BILLION 9804 MILLION SHAREHOLDERS EXPECT TO CONTRIBUTE HK24 BILLION IN CAPITAL WITH THE BALANCE FINANCED BY BANK LOANS ACCORDING TO CITIC PACIFIC CITIC PACIFIC CHINA INTERNATIONAL TRUST & INVESTMENT CORP HONG KONG HOLDINGS LTD AND KERRY HOLDINGS LTD FORMED A NEW COMPANY THAT WILL OWN HALF OF WESTERN HARBOUR TUNNEL CO LTD CHINA INTERNATIONAL TRUST CONTROLLED BY THE CENTRAL GOVERNMENT IN BEIJING OWNS ABOUT 44 OF CITIC PACIFIC WHILE THE ARM OF MALAYSIANCHINESE FINANCIER ROBERT KUOK'S KERRY GROUP OWNS ABOUT 11 OF CITIC PACIFIC A PUBLIC UNIT OF BEIJING'S MAIN INVESTMENT ARM CITIC PACIFIC WILL OWN 20 OF THE NEWLY FORMED COMPANY ADWOOD CO WHICH WILL PARTICIPATE IN THE CONSORTIUM CHINA INTERNATIONAL TRUST WILL TAKE 50 IN ADWOOD AND KERRY 30 9307230160 930723 INTERNATIONAL AS JAPAN'S PRIME MINISTER QUITS RULING PARTY ERUPTS IN A REVOLT LIBERAL DEMOCRATS' ELDERS COME UNDER PRESSURE BY YOUNGER MEMBERS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO LESS THAN A WEEK AFTER TAKING A DRUBBING AT THE POLLS JAPAN'S RULING LIBERAL DEMOCRATIC PARTY WAS ROCKED BY A REMARKABLE NEW INTERNAL REVOLT A VITRIOLIC GENERATIONAL FEUD IGNITED AFTER KIICHI MIYAZAWA 73 YEARS OLD TOLD A GATHERING OF THE LDP'S 329 MEMBERS OF THE TWO HOUSES OF PARLIAMENT THAT HE WOULD RESIGN AS PRIME MINISTER AND PARTY LEADER TO TAKE RESPONSIBILITY FOR SUNDAY'S POOR LDP SHOWING THE PARTY PATRIARCHY THEN ASKED MEMBERS TO LEAVE THE CHOICE OF A REPLACEMENT TO A SELFSELECTED GROUP OF TOP PARTY OFFICIALS THAT'S THE WAY THE LDP HAS ANNOINTED THE NATION'S LEADERS AND DEFINED MOST JAPANESE POLICY FOR 38 YEARS BUT YOUNGER MEMBERS OF THE LDP WOULD HAVE NONE OF IT BEFORE A NATIONAL TELEVISION AUDIENCE THEY HURLED INVECTIVE AT THE PARTY LEADERSHIP DEMANDING THAT THE NEXT HEAD OF THE PARTY BE CHOSEN IN AN OPEN PARTY VOTE EARLY NEXT MONTH THIS SMELLS LIKE A MILITARY GOVERNMENT JINEN NAGASE A 49YEAROLD PARLIAMENT MEMBER BARKED AT THE PARTY LEADERS SITTING IMPASSIVELY ON THE STAGE THE LDP'S APPEARANCE AND SMELL IS DISLIKED BY THE PEOPLE I REGARD PRIME MINISTER MIYAZAWA AS A CLASS C WAR CRIMINAL SAID 48YEAROLD SEIICHI OHTA INVOKING TERMINOLOGY USED FOR LOWLEVEL WAR CRIMINALS AFTER WORLD WAR II I DEMAND THAT CLASS A AND CLASS B WAR CRIMINALS ALSO TAKE RESPONSIBILITY HE ADDED GLARING AT THE PARTY EXECUTIVES THE OLD GUARD FINALLY CAVED IN AGREEING TO TURN THE DELIBERATIONS OVER TO A GROUP REPRESENTING ALL GENERATIONS OF THE PARTY THE RESULT WILL LIKELY BE A PARTYWIDE SECRET BALLOT A TRIUMPHANT SHOKEI ARAI A 45YEAROLD PARTY REBEL DECLARED THE ANCIEN REGIME HAS COLLAPSED AS IF TO UNDERSCORE THAT POINT THE ONETIME KING OF THE OLD GUARD SHIN KANEMARU SUFFERED A SEPARATE HUMILIATION EARLIER IN THE DAY MR KANEMARU 78 WENT ON TRIAL IN TOKYO FOR EVADING 104 BILLION YEN 96 MILLION IN TAXES MR KANEMARU PLEADED NOT GUILTY TO THE CHARGES YESTERDAY SAYING HE INTENDED TO USE THE UNREPORTED INCOME NOT FOR PERSONAL PURPOSES BUT FOR POLITICAL REALIGNMENT WHICH HE CALLED A LONGHELD DREAM MR KANEMARU WHOSE NEXT HEARING IS SEPT 7 DIDN'T ELABORATE BUT YESTERDAY'S EVENTS INDICATE HE MAY UNWITTINGLY BE SUCCEEDING BEYOND HIS EXPECTATIONS DESPITE THE SURFACE CHAOS THE LDP REMAINS THE MOST FORMIDABLE FORCE IN JAPANESE POLITICS IT LOST ITS MAJORITY IN THE LOWER HOUSE OF PARLIAMENT BUT IS THREE TIMES BIGGER THAN ITS NEXTLARGEST COMPETITOR POLITICAL COMMENTATORS SAY THE LDP STILL COULD FORM THE CORE OF THE NEXT GOVERNMENT EITHER IN COALITION OR AS A RULING MINORITY PARTY STILL THE LDP'S STORMY 2 1/2HOUR MEETING YESTERDAY RAISES NEW QUESTIONS ABOUT HOW SOLID THE PARTY REALLY IS THE LDP'S TROUBLES STARTED LAST MONTH WHEN MORE THAN 50 MEMBERS QUIT TO FORM THEIR OWN PARTIES MORE MEMBERS COULD DEFECT OSTENSIBLY THE BATTLE IS ABOUT REFORMING THE CORRUPT ELECTORAL SYSTEM BUT IT IS ALSO A FIGHT BETWEEN THE OLD AND NEW GENERATION OF POLITICIAN SOME YOUNGER MEMBERS WANT THE LDP TO ALTER THE PARTY SENIORITY SYSTEM THAT RESERVES THE PLUM JOBS FOR THE MOSTVETERAN MEMBERS IT'S A PALACE REVOLUTION SAID JESPER KOLL AN AIDE TO MR ARAI THE PARTY REBEL THE BABYBOOM GENERATION WANTS INTO THE HALLS OF POWER BUT THE OLDER GENERATION ISN'T READY TO LEAVE THE LIST OF CANDIDATES TO SUCCEED MR MIYAZAWA INCLUDE SOME PREDICTABLY SENIOR PARTY MEMBERS SUCH AS AILING MICHIO WATANABE 69 A FORMER FOREIGN MINISTER AND HIROSHI MITSUZUKA 65 WHO HEADS A FACTION OF THE PARTY THE REFORMERS WITHIN THE PARTY ARE PUSHING FOR LDPMEMBERS MASAHARU GOTODA 78 AND TOSHIKI KAIFU 62 A FORMER PRIME MINISTER THE CHANCES OF A NONLDP COALITION TAKING POWER GOT A BOOST YESTERDAY WHEN THE HEAD OF ONE OF THE NEW CONSERVATIVE OPPOSITION PARTIES INDICATED HE WOULD BACK SUCH A COALITION UNTIL NOW JAPAN NEW PARTY LEADER MORIHIRO HOSOKAWA HAS REFUSED TO SUPPORT A NONLDP COALITION BECAUSE HE DIDN'T LIKE THE POLICIES OR BACKGROUNDS OF OTHER OPPOSITION PARTY LEADERS WITHOUT THE SUPPORT OF HIS PARTY'S 35 MEMBERS A NONLDP GOVERNMENT APPEARS IMPOSSIBLE 9307230159 930723 US RESERVE ASSETS FALL TO 7397 BILLION WASHINGTON US OFFICIAL RESERVE ASSETS FELL 274 BILLION IN JUNE TO 7397 BILLION FOLLOWING A 107 BILLION RISE IN MAY THE TREASURY SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES DROPPED 232 BILLION IN JUNE TO 42 BILLION WHILE ITS GOLD RESERVES ROSE 4 MILLION TO 1106 BILLION SDR HOLDINGS FELL 160 MILLION TO 899 BILLION AND THE US RESERVE POSITION AT THE IMF DROPPED 269 MILLION TO 1193 BILLION 9307230158 930723 NATIONAL MEDICAL BROKE OFF TALKS INSURERS CHARGE FIRMS ALLEGE FALSE CLAIMS SEEK TO RECOVER FUNDS LAWSUIT MOVES AHEAD BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES NATIONAL MEDICAL ENTERPRISES INC BROKE OFF SETTLEMENT TALKS LAST MONTH WITH A GROUP OF INSURANCE COMPANIES SEEKING TO RECOVER HUNDREDS OF MILLIONS OF DOLLARS PAID TO THE COMPANY'S PSYCHIATRIC HOSPITAL DIVISION FOR ALLEGEDLY FRAUDULENT CLAIMS AN ATTORNEY REPRESENTING THE INSURERS SAID THERE HAVEN'T BEEN ANY SETTLEMENT TALKS OR NEGOTIATIONS SINCE JUNE 4 WHEN NATIONAL MEDICAL NOTIFIED THE INSURERS THAT IT WAS WITHDRAWING A SETTLEMENT OFFER MADE IN MAY SAID THE ATTORNEY THOMAS BRUNNER THE PRINCIPAL LAWYER DIRECTING THE INSURERS' LITIGATION THE CASE WAS FILED A YEAR AGO IN US DISTRICT COURT IN WASHINGTON WHAT TROUBLES US IS THAT NATIONAL MEDICAL BROKE OFF TALKS WHILE SIMULTANEOUSLY REPRESENTING TO INVESTORS THAT THEY WERE ENGAGED IN TALKS AND MAKING SOME HEADWAY MR BRUNNER SAID HE SAID HE WAS SPEAKING OUT BECAUSE THERE HAS BEEN A STEADY STREAM OF REPORTS TO US THAT NME IS CLAIMING TO BE FAR ADVANCED IN SETTLEMENT NEGOTIATIONS WITH OUR GROUP NATIONAL MEDICAL'S VICE PRESIDENT OF CORPORATE COMMUNICATIONS DAVID OLSON DECLINED TO COMMENT DIRECTLY ON MR BRUNNER'S ALLEGATIONS MR OLSON ACKNOWLEDGED THAT THERE AREN'T ANY OFFERS ON THE TABLE OR ANY NEGOTIATIONS UNDER WAY HOWEVER ATTORNEYS FOR THE PARTIES ARE TALKING TO EACH OTHER ABOUT THE CASE HE SAID MR BRUNNER CHARACTERIZED THE CONTINUING COMMUNICATIONS AS ROUTINE CONTACTS SUCH AS SCHEDULING OF DEPOSITIONS TO MOVE THE LITIGATION TOWARD TRIAL A WASHINGTON JUDGE HAS IMPOSED A DEADLINE OF OCT 27 FOR THE DISCOVERY PHASE OF THE CASE A TRIAL DATE WILL PROBABLY BE SET SHORTLY AFTER THAT MOST LIKELY FOR SOMETIME IN EARLY 1994 MR BRUNNER SAID EIGHT INSURANCE COMPANIES LED BY A UNIT OF TRAVELERS CORP FILED SUIT AGAINST NATIONAL MEDICAL SANTA MONICA CALIF ON JULY 30 1992 FIVE OTHER INSURERS HAVE SINCE JOINED THE PLAINTIFF GROUP MR BRUNNER SAYS THE GROUP OF 13 COLLECTIVELY PAID 625 MILLION IN NATIONAL MEDICAL PSYCHIATRIC CLAIMS DURING THE FIVEYEAR PERIOD BEGINNING IN 1988 WE BELIEVE A SUBSTANTIAL PORTION OF THOSE CLAIMS ARE FRAUDULENT TWO OTHER GROUPS OF INSURANCE COMPANIES HAVE FILED SIMILAR LAWSUITS IN A FEDERAL COURT IN DALLAS A JUDGE THERE HAS APPARENTLY GRANTED NATIONAL MEDICAL'S REQUEST TO CONSOLIDATE THE TEXAS SUITS THERE HAVE BEEN TWO SEPARATE SERIES OF SETTLEMENT DISCUSSIONS IN THE WASHINGTON CASE THE FIRST WAS AN ATTEMPT TO RESOLVE THE DISPUTE EVEN BEFORE THE LAWSUIT WAS FILED LAST YEAR SAID MR BRUNNER A PARTNER AT WILEY REIN & FIELDING IN WASHINGTON REPRESENTATIVES FROM BOTH SIDES MET JULY 14 1992 IN DALLAS TO TALK ABOUT SETTLING THE CASE BEFORE IT WAS FILED MR BRUNNER SAID THERE WAS NO SUBSTANTIVE PROPOSAL MADE THE FOLLOWING MONDAY NATIONAL MEDICAL FILED A RETALIATORY LAWSUIT AGAINST THE THREE INSURERS WHOSE REPRESENTATIVES WERE AT THE DALLAS MEETING SOMETIME AGO THERE WERE TWO MEETINGS THAT MR BRUNNER DESCRIBES AS NEGOTIATIONS ABOUT THE NEGOTIATIONS TO PREPARE THE WAY FOR A REAL NEGOTIATING SESSION THAT SESSION TOOK PLACE IN MIDMAY AT THE NEW YORK OFFICES OF ONE OF NATIONAL MEDICAL'S OUTSIDE LAW FIRMS MR BRUNNER SAID ON MAY 19 NATIONAL MEDICAL MADE A FORMAL SETTLEMENT PROPOSAL THE INSURERS MADE A COUNTERPROPOSAL ON MAY 26 MR BRUNNER SAID HE COULDN'T DISCUSS DETAILS SAYING ONLY THAT BOTH OFFERS WERE SUBSTANTIAL BUT THERE WAS A WIDE RANGE BETWEEN THEM THE INSURERS DIDN'T VIEW NATIONAL MEDICAL'S PROPOSAL AS A LIKELY FINAL OFFER MR BRUNNER SAID INSTEAD OF A NEW OFFER HOWEVER NATIONAL MEDICAL LAST MONTH SENT THE LETTER WITHDRAWING ITS PROPOSAL AND SAYING THERE DIDN'T SEEM TO BE ANY BASIS FOR POSSIBLE COMPROMISE MR BRUNNER SAID APART FROM SOME INDIRECT EXCHANGES A COUPLE OF WEEKS LATER THERE HAVEN'T BEEN ANY DISCUSSIONS ABOUT RESUMING THE TALKS MR BRUNNER SAID NATIONAL MEDICAL'S FOCUS NOW APPEARS TO HAVE SHIFTED TO THE TEXAS LITIGATION IN WHICH A FEDERAL COURT JUDGE HAS ORDERED THE PARTIES TO NONBINDING MEDIATION SEPT 20 EVERYBODY IS GOING TO WANT TO KEEP A CLOSE EYE ON WHAT MAY HAPPEN AS A RESULT OF THAT MR OLSON SAID OUR HOPE IS THAT ALL THE CASES COULD BE SETTLED CONCURRENTLY 9307230157 930723 WHO'S NEWS HILO AUTOMOTIVE INC HILO AUTOMOTIVE INC HOUSTON RICHARD C ADKERSON 46 YEARS OLD WAS ELECTED A DIRECTOR OF THIS OIL AND GAS AND REALESTATE COMPANY SUCCEEDING A DIRECTOR WHO DIED LAST YEAR MR ADKERSON IS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF FREEPORTMCMORAN INC HILO AUTOMOTIVE INC IS AN AUTOMOTIVE PARTS RETAILER IN FRIDAY'S WHO'S NEWS COLUMN THE COMPANY WAS INCORRECTLY DESCRIBED AS AN OIL AND GAS AND REALESTATE COMPANY 9307230156 930723 BUSINESS BRIEF BOWATER INC LOSS NARROWED IN 2ND PERIOD AS NEWSPRINT PRICES ROSE BOWATER INC A PULP AND PAPER COMPANY CUT ITS LOSSES FOR THE SECOND QUARTER AS NEWSPRINT PRICES SLIGHTLY IMPROVED THE GREENVILLE SC COMPANY POSTED A LOSS OF 156 MILLION OR 45 CENTS A SHARE COMPARED WITH A LOSS OF 244 MILLION OR 70 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES FOR THE QUARTER ROSE 2 TO 3632 MILLION THE COMPANY SAID THE SLOW ECONOMIC RECOVERY AND OVERCAPACITY FOR THE INDUSTRY RESULTED IN DISAPPOINTING RESULTS IN ITS PULP PRODUCT LINE EXCESS INDUSTRY CAPACITY AND THE ECONOMY ARE EXPECTED TO DAMP NEWSPRINT PRICES IN THE CURRENT QUARTER THE COMPANY SAID 9307230155 930723 CANADA WILL DELAY CIGARETTE WARNINGS FOR ABOUT ONE YEAR OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL DELAY FOR ABOUT A YEAR REGULATIONS THAT FORCE CANADA'S TOBACCO COMPANIES TO PUT BIGGER AND TOUGHER HEALTH WARNINGS ON CIGARETTE PACKAGES THE WARNINGS WHICH HEALTH GROUPS SAY ARE AMONG THE STRONGEST IN ANY COUNTRY WERE TO HAVE TAKEN EFFECT SEPT 1 THE HEALTH MESSAGES AMONG OTHER THINGS WILL CAUTION THAT SMOKING IS ADDICTIVE THAT IT CAN KILL AND THAT IT CAN CAUSE FATAL LUNG DISEASE IN NONSMOKERS THERE WILL BE EIGHT WARNINGS IN ALL THAT MUST BE DISPLAYED EITHER IN BLACK LETTERS ON A WHITE BACKGROUND OR WHITE LETTERS ON A BLACK BACKGROUND AT THE TOP OF CIGARETTE PACKAGES THE WARNINGS MUST TAKE UP AT LEAST 25 OF ONE SIDE OF A PACKAGE AND MUST BE USED ON A ROTATING BASIS CANADIAN TOBACCO COMPANIES OPPOSE THE NEW WARNINGS AND HAVE URGED THE GOVERNMENT TO DELAY IMPLEMENTING THEM THE CANADIAN GOVERNMENT ALSO SAID IT WILL INTRODUCE SOON REGULATIONS TO RESTRICT CIGARETTE SALES TO MINORS 9307230154 930723 WHO'S NEWS SALEM CORP SALEM CORP PITTSBURGH VINCENT J SCHAFMEISTER JR THE 70YEAROLD CHIEF EXECUTIVE OF NORTH SHORE MEDICAL CENTER FOUNDATION WAS NAMED A DIRECTOR OF THIS ENGINEERING CONCERN MR SCHAFMEISTER SUCCEEDS TRACY POSNER WARD WHO RESIGNED MS WARD IS A DAUGHTER OF SALEM'S CHAIRMAN AND CHIEF EXECUTIVE VICTOR POSNER HER RESIGNATION FOLLOWS THE REPLACEMENT THIS MONTH OF THREE OTHER DIRECTORS PROVOKED BY A LAWSUIT CLAIMING THE COMPANY OVERPAID MR POSNER 9307230153 930723 BUSINESS BRIEF TEXTRON INC SECONDQUARTER NET INCOME ROSE 17 TO RECORD LEVEL TEXTRON INC REPORTED RECORD SECONDQUARTER NET INCOME AND REVENUE AND PREDICTED RECORD OPERATING RESULTS FOR THE FULL YEAR AS WELL THE DIVERSIFIED MAKER OF HELICOPTERS AIRPLANES CAR PARTS AND GOLF CARTS AND PROVIDER OF FINANCIAL SERVICES IN PROVIDENCE RI SAID NET INCOME ROSE 17 TO 943 MILLION OR 105 A SHARE FROM 808 MILLION OR 91 CENTS A SHARE REVENUE ROSE 43 TO 225 BILLION FROM 216 BILLION THE GAINS CAME DESPITE A 23 DECLINE IN AEROSPACE OPERATING INCOME TO 638 MILLION FROM 831 MILLION AEROSPACE REVENUE FELL 64 TO 6539 MILLION THE AEROSPACE INCOME DROP WAS OFFSET BY A 23 GAIN IN INCOME FROM THE FINANCIAL AND INSURANCE GROUP WHERE INCOME INCREASED TO 1045 MILLION FROM 846 MILLION AND A 28 GAIN IN OPERATING INCOME IN THE COMMERCIAL PRODUCTS GROUP TO 614 MILLION FROM 478 MILLION 9307230152 930723 BUSINESS BRIEF EASTERN ENTERPRISES SECONDPERIOD NET FELL 55 MIDWEST FLOODING IS FACTOR EASTERN ENTERPRISES SAID SECONDQUARTER EARNINGS FELL 55 AND NET FOR THE FULL YEAR WON'T EQUAL 1992 RESULTS PARTLY DUE TO FLOOD PROBLEMS FOR ITS MIDLAND ENTERPRISES BARGE UNIT NET INCOME IN THE QUARTER FELL TO 33 MILLION OR 14 CENTS A SHARE FROM 74 MILLION OR 32 CENTS A SHARE REVENUE ROSE 37 TO 2597 MILLION FROM 2503 MILLION EASTERN BASED IN WESTON MASS SAID REVENUE GREW 5 TO 1286 MILLION AT ITS BOSTON GAS CO UNIT BUT INCOME FELL 55 TO 43 MILLION BECAUSE OF A RATE ADJUSTMENT WARMER WEATHER AND INCREASED OPERATING COSTS DURING A RECENT STRIKE BY 1100 WORKERS IT SAID MIDLAND ENTERPRISES' REVENUE ROSE 4 TO 667 MILLION WHILE INCOME FELL 1 TO 98 MILLION J ATWOOD IVES CHAIRMAN SAID THAT BECAUSE THE MISSISSIPPI RIVER FLOOD IS SLASHING TONNAGE AND FORCING COSTS UP AT MIDLAND THIRDQUARTER RESULTS WILL BE HURT AS A RESULT HE SAID WE NOW EXPECT EASTERN'S 1993 EARNINGS PER SHARE WILL NOT REACH THE OPERATING INCOME OF 379 MILLION OR 167 A SHARE REPORTED LAST YEAR 9307230151 930723 MARKETING & MEDIA VIACOM POSTS PROFIT JUMP IN EARNINGS FOR SECOND QUARTER NEW YORK VIACOM INC REPORTED A PROFIT AND HIGHER REVENUE BOLSTERED BY NOTABLY POTENT RESULTS FROM ITS MTV NETWORKS AS WELL AS IMPROVED BROADCASTING AND CABLE TELEVISION OPERATIONS REVERSING A YEAREARLIER LOSS VIACOM REPORTED NET INCOME OF 416 MILLION OR 35 CENTS A SHARE FOR THE SECOND QUARTER IN THE YEAREARLIER PERIOD BEFORE AN ACCOUNTING CHANGE THE COMPANY HAD A LOSS OF 11 MILLION OR ONE CENT A SHARE THE ACCOUNTING CHANGE 137 MILLION OR 11 CENTS A SHARE BROUGHT THE LOSS TO 148 MILLION OR 12 CENTS A SHARE REVENUE ROSE 99 TO 4958 MILLION FROM 4511 MILLION THE COMPANY HAS BEEN REDUCING ITS BORROWING COSTS AND INTEREST EXPENSE FOR THE QUARTER TOTALED 397 MILLION DOWN FROM 525 MILLION A YEAR EARLIER AT JUNE 30 THE AVERAGE INTEREST RATE WAS 61 COMPARED WITH 69 A YEAR EARLIER ON JULY 15 VIACOM COMPLETED ITS CALL OF NEARLY 300 MILLION OF 118 NOTES THE COMPANY SAID MTV NETWORKS HAD A 46 INCREASE IN EARNINGS FROM OPERATIONS ON A 31 GAIN IN REVENUE WHILE THE ENTIRE NETWORKS SEGMENT HAD A 24 INCREASE IN EARNINGS TO 65 MILLION ITS SHOWTIME NETWORKS INC EARNINGS DECLINED TO 8 MILLION FROM 13 MILLION A YEAR EARLIER MAINLY BECAUSE OF TIMING OF EXPENSES FOR ORIGINAL PROGRAMMING AND MARKETING BROADCASTING EARNINGS ROSE 26 TO 14 MILLION WHILE REVENUE ROSE 8 TO 48 MILLION EARNINGS OF THE ENTERTAINMENT SEGMENT WHICH INCLUDES SYNDICATION AND ORIGINAL TELEVISION PROGRAMMING SALES FELL 17 TO 12 MILLION WHILE REVENUE FELL 25 TO 41 MILLION CABLE TELEVISION EARNINGS ROSE 11 ON A 10 REVENUE GAIN EXCLUDING THE MILWAUKEE CABLE SYSTEM SOLD JAN 1 VIACOM THE HOLDING COMPANY PARENT OF VIACOM INTERNATIONAL INC IS 76OWNED BY CLOSELY HELD NATIONAL AMUSEMENTS INC IN LATE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE VIACOM SHARES WERE QUOTED AT 57875 UP 125 CENTS 9307230150 930723 THEY HAVE THE RIGHT TO REMAIN SILENT BUT MOST WILL SAY THANKS BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL IF THE POLICE PULL YOU OVER IN DOWNTOWN SKOWHEGAN MAINE DON'T ASSUME YOU'RE GETTING A TICKET YOU MAY HAVE WON A FREE NIGHT ON THE TOWN IN WHAT HAS TO RANK AS ONE OF THE MOST UNUSUAL TOURIST PROMOTIONS EVER THE LOCAL CHAMBER OF COMMERCE AND THE POLICE DEPARTMENT HAVE TEAMED UP FOR AN ARRESTATOURIST PROGRAM IN WHICH UNSUSPECTING OUTOFSTATERS ARE NABBED BY POLICE ONLY TO BE REWARDED WITH A FREE NIGHT'S LODGING MEALS AND ENTERTAINMENT OFFICIALS IN SKOWHEGAN A CENTRAL MAINE TOWN BETTER KNOWN FOR MAKING PAPER POPSICLE STICKS AND ATHLETIC SHOES THAN AS A TOURIST MECCA THINK IT'S A GREAT IDEA SO DID THE FIRST VICTIMS A CANADIAN COUPLE ARRESTED TWO WEEKS AGO WHO LATER WROTE A THANKYOU NOTE TO THE CHAMBER SAYING THANK YOU FOR ARRESTING' US IN YOUR FAIR TOWN IT WAS CERTAINLY SOMETHING TO TALK ABOUT HEH BUT ONE PARTY NOT TOO KEEN ON THE IDEA IS THE MAINE CIVIL LIBERTIES UNION WHICH HAS CRITICIZED THE PROMOTION MY VIEW IS THAT IT IS AN INAPPROPRIATE USE OF THE POLICE FORCE SAYS MICHAEL PARKER A LEGAL DIRECTOR WITH THE MCLU IT SEEMS TO ME SOMEWHAT DEMEANING THAT THEY'RE PART OF A PUBLICRELATIONS PROGRAM FOR TOURISTS AT FIRST THE SKOWHEGAN AREA CHAMBER OF COMMERCE PRESIDENT DAVID SAVAGE CALLED THE MCLU'S CONCERN RIDICULOUS HE OBTAINED A RULING FROM THE TOWN ATTORNEY WHO DECIDED THERE'S NOTHING ILLEGAL WITH WHAT WE'RE DOING MR SAVAGE SAYS NEVERTHELESS IN AN EFFORT TO PLACATE THE LEGAL GROUP THE CHAMBER DECIDED TO MODIFY ITS ARREST PROCEDURE POLICE WILL NO LONGER SIMPLY DRIVE UP BEHIND TOURISTS WITH LIGHTS FLASHING AND SIRENS WAILING STARTING YESTERDAY WHEN A SECOND OUTOFSTATE COUPLE WAS NABBED THE POLICE CHIEF NOW STANDS ON A CROSSWALK AND ASKS PROSPECTIVE ARRESTEES TO PULL OVER THEN THE CHIEF QUESTIONS THEM TO DETERMINE WHETHER THEY MIGHT BE INTERESTED IN SPENDING THE NIGHT IN SKOWHEGAN IF THEY QUALIFY A POLICE CAR COMES ALONG AND ARRESTS THE TOURISTS PRESUMABLY WITHOUT SCARING THEM MR SAVAGE SAYS BUT THE MCLU STILL HAS CONCERNS THE POWER TO ARREST IS A REAL SERIOUS POWER THAT GOVERNMENT HAS AND IT OUGHT NOT TO BE USED FOR SOMETHING THAT IS A FUN THING SAYS MR PARKER IT DEMEANS IT 9307230149 930723 AT&T REPORTS 86 PROFIT INCREASE IN 2ND PERIOD MANAGEMENT SHIFT MADE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO'S NET INCOME GREW 86 IN THE SECOND QUARTER ON A 3 REVENUE RISE BUT THE SLUGGISH ECONOMY AND COMPETITION KEPT REVENUE FLAT FOR LONGDISTANCE SERVICES AT&T ALSO ANNOUNCED AN EXPECTED REORGANIZATION OF ITS UPPER MANAGEMENT RANKS WITH THE AIM OF HELPING ITS GLOBAL EXPANSION AND ITS MOVE INTO SUCH NEW BUSINESSES AS MULTIMEDIA PRODUCTS PROFIT ROSE TO 104 BILLION OR 77 CENTS A SHARE FROM 961 MILLION OR 72 CENTS A SHARE A YEAR EARLIER PERSHARE EARNINGS GREW 69 REFLECTING AN INCREASE IN THE NUMBER OF AT&T'S COMMON SHARES OUTSTANDING IN THE PAST YEAR REVENUE CLIMBED TO 1632 BILLION FROM 1585 BILLION IN THE FIRST HALF AT&T HAD A LOSS OF 46 BILLION OR 341 A SHARE REFLECTING CHARGES FOR POSTRETIREMENT BENEFITS TAKEN IN THE FIRST QUARTER EXCLUDING THE CHARGES AT&T SAID ITS PROFIT WOULD HAVE BEEN 204 BILLION OR 151 A SHARE 11 MORE THAN THE 184 BILLION OR 139 A SHARE A YEAR EARLIER REVENUE ROSE 26 TO 3204 BILLION FROM 3122 BILLION AT&T'S NUMBERS WERE IN LINE WITH ANALYSTS' EXPECTATIONS MOST OF THE COMPANY'S GROWTH CAME FROM THE SALE OF EQUIPMENT PARTICULARLY NETWORK SYSTEMS AND ELECTRONIC CHIPS AND FROM AT&T'S FINANCIAL SERVICES AND LEASING UNITS AFTER THE ANNOUNCEMENT AT&T SHARES FELL 875 CENTS TO 63875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN A BROADLY LOWER MARKET AT&T SAID IT TOOK A BUSINESS RESTRUCTURING CHARGE IN THE QUARTER OF 287 MILLION FOR A PREVIOUSLY ANNOUNCED WORKFORCE REDUCTION AND FACILITY CONSOLIDATION THE CHARGE WAS PARTLY OFFSET BY A GAIN OF 217 MILLION FROM THE SALE OF AT&T'S REMAINING STAKE IN UNIX SYSTEM LABORATORIES INC TO NOVELL INC WHILE THE RESTRUCTURING CHARGE CAUSED A 31 DROP IN REPORTED OPERATING PROFIT AT&T'S IMPROVED OPERATINGPROFIT MARGIN IS MORE INDICATIVE OF AT&T'S LONGTERM PROFIT TREND EXCLUDING THE CHARGE THE COMPANY'S OPERATING MARGIN WOULD HAVE BEEN 108 COMPARED WITH 96 A YEAR EARLIER LEADING TO A BETTER THAN 15 IMPROVEMENT IN OPERATING PROFIT THIS LED AT&T'S CHAIRMAN ROBERT E ALLEN TO CALL IT A GOOD QUARTER IN SPITE OF AN ECONOMY GROWING MORE SLOWLY THAN EXPECTED AT&T'S LONGDISTANCE UNIT CONTINUED TO SHOW THE STRESS OF ITS FIGHT WITH MCI COMMUNICATIONS CORP AND SPRINT CORP FOR MARKET SHARE LONGDISTANCE REVENUE FELL 18 MILLION OR 02 TO 983 BILLION FROM 985 BILLION MAINLY BECAUSE AT&T HAD TO RETURN SOME FIRSTQUARTER INTERNATIONAL SERVICE REVENUE TO OVERSEAS CARRIERS AS A RESULT OF AN ACCOUNTING ADJUSTMENT LONGDISTANCE TRAFFIC VOLUME FROM THE FIRST AND SECOND QUARTERS DECLINED 1 BUT INCREASED 5 YEARTOYEAR BY CONTRAST MCI YESTERDAY SHOWED 13 VOLUME GROWTH FOR THE QUARTER AND A 12 INCREASE IN REVENUE TO 293 BILLION AT&T NONETHELESS MAINTAINED THAT IT IS BEATING BACK COMPETITION THE COMPANY'S CONTROLLER ROGER DAVIS SAID MORE THAN FIVE MILLION CUSTOMERS HAD SIGNED UP FOR ITS LONGDISTANCE OFFERING CALLED THE I PLAN SINCE ITS INTRODUCTION IN FEBRUARY AND HE SAID THAT CUSTOMER WINBACKS HAD EQUALED THOSE WHO FLED TO COMPETITORS' SERVICES DURING THIS TIME WE'RE MAKING PROGRESS IN OUR EFFORTS TO PROFITABLY GROW AT THE INDUSTRY RATE OR FASTER MR DAVIS SAID ROBERT B MORRIS AN ANALYST AT GOLDMAN SACHS & CO AGREED NOTING THAT AT&T IS SHOWING PROFITMARGIN EXPANSION IN THE QUARTER WHILE ITS RIVALS WERE FLAT TO DOWN AND AT&T'S TRAFFIC VOLUME BETWEEN QUARTERS SHOWED GROWTH WHILE OTHERS ACTUALLY DECELERATED AT&T'S BEST GROWTH CAME IN ITS GLOBAL NETWORK SYSTEMS GROUP WHICH MAKES TELECOMMUNICATIONS SWITCHES AND TRANSMISSION GEAR FOR PHONE COMPANIES AND ELECTRONIC CHIPS STRONG US SALES PUSHED UP REVENUE ALMOST 10 TO 187 BILLION A SHOWING THAT STOOD IN STARK CONTRAST TO THE DISMAL NUMBERS REPORTED WEDNESDAY BY NORTHERN TELECOM LTD AT&T'S ARCHRIVAL IN THE US EQUIPMENT MARKET NORTHERN TELECOM HAD A LOSS OF 103 BILLION IN THE QUARTER MAINLY BECAUSE OF PROBLEMS IN ITS SWITCHINGEQUIPMENT BUSINESS AT&T IS CLEANING NORTHERN TELECOM'S CLOCK SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC IN FACT HE ESTIMATED THAT THE UNIT'S PRETAX PROFIT DOUBLED IN THE QUARTER FROM A YEAR EARLIER TO 150 MILLION ACCOUNTING FOR ABOUT 10 OF AT&T'S PROFIT AT&T DOESN'T BREAK THESE FIGURES OUT IN ADDITION AT&T MICROELECTRONICS WHICH MAKES AND SELLS ELECTRONIC CHIPS POSTED A 22 REVENUE GAIN TO 630 MILLION IN THE QUARTER NOT ALL EQUIPMENT OPERATIONS FAIRED WELL AT&T'S COMPUTER UNIT NCR CORP CONTINUED TO BE PLAGUED BY THE GENERAL SLOWDOWN IN THE COMPUTER INDUSTRY OPERATING PROFIT AT THE DAYTON OHIO SYSTEMS COMPANY PLUNGED 73 IN THE QUARTER TO 27 MILLION REVENUE BOOSTED MAINLY BY A 55 INCREASE IN SALES TO AT&T AFFILIATES ROSE A MEASLY 29 TO 875 MILLION FINANCIAL SERVICES AND LEASING CONTINUED TO SHOW STRONG RESULTS WITH REVENUE CLIMBING 39 TO 588 MILLION AS EXPECTED AT&T ANNOUNCED AN OVERHAUL OF ITS UPPER MANAGEMENT TEAM SEVERAL EXECUTIVES GOT BIG BOOSTS FROM MR ALLEN'S RESTRUCTURING ALEX MANDL 49 YEARS OLD WHO LEFT HIS JOB AS CHIEF EXECUTIVE OFFICER OF SEALAND SERVICES TO JOIN AT&T ONLY TWO YEARS AGO AS CHIEF FINANCIAL OFFICER WAS PUT IN CHARGE OF AT&T'S CORE LONGDISTANCESERVICES BUSINESS IN ADDITION ROBERT M KAVNER CURRENTLY CHIEF OF AT&T'S COMMUNICATIONS PRODUCTS GROUP HAD HIS DUTIES EXPANDED GIVING HIM BROAD AUTHORITY FOR AT&T'S PUSH INTO MULTIMEDIA MR KAVNER'S GROUP ALSO WAS RENAMED THE MULTIMEDIA GROUP TO REFLECT THIS EFFORT AND VICTOR PELSON THE CURRENT HEAD OF COMMUNICATION SERVICES WAS GIVEN BROAD POWERS FOR DIRECTING AT&T'S GLOBALIZATION AND ITS POWERFUL SEVENMEMBER OPERATING TEAM CLEARLY ALLEN IS MAKING THE GLOBAL EXPANSION A PRIORITY MR GRUBMAN SAID THIS IS A GOOD TIME FOR HIM TO SHUFFLE THE DECK SINCE AT&T IS POSITIONED WELL NOW THE CHALLENGE IS TO MAKE SURE THE IMPLICATIONS OF WHAT THEY'RE DOING ARE POSITIVE BUT THE MOST INTERESTING THING ABOUT THE CHANGES MAY BE WHAT THEY SAY ABOUT MR ALLEN IN JUST FIVE YEARS HE HAS CHANGED AT&T FROM A FORMER MONOPOLY STRUGGLING WITH COMPETITION INTO ONE OF THE HIGHTECHNOLOGY INDUSTRY'S MOST ADMIRED AND FEARED COMPETITORS AND MR ALLEN'S WILLINGNESS TO PEPPER AT&T'S UPPER RANKS WITH FORMER CEOS OF OTHER MAJOR CORPORATIONS SHOWS HE'S VERY SECURE MR MORRIS SAID HE'S BRINGING IN INDIAN CHIEFS TO BE INDIANS AND THOSE INDIANS OBVIOUSLY SEE A LOT OF OPPORTUNITY AT AT&T AMERICAN TELEPHONE & TELEGRAPH CO'S COMPUTER UNIT NCR CORP HAD REVENUE OF 181 BILLION IN THE SECOND QUARTER A 34 INCREASE FROM A YEAR EARLIER AN ARTICLE FRIDAY INCORRECTLY STATED THAT REVENUE ROSE 29 TO 875 MILLION THAT FIGURE REPRESENTED NCR'S PRODUCT SALES AND EXCLUDED REVENUE FROM COMPUTER SERVICES AND OTHER ITEMS 9307230148 930723 BUSINESS BRIEF SECONDPERIOD PROFIT FELL 30 AT PHELPS 61 AT MAGMA COPPER COPPERCOMPANY EARNINGS TOOK A BEATING IN THE SECOND QUARTER BECAUSE OF LOWER COPPER PRICES AND THE LINGERING EFFECTS OF HEAVY FIRSTQUARTER RAINS PHELPS DODGE CORP BASED IN PHOENIX ARIZ REPORTED ITS NET INCOME FELL ABOUT 30 AND MAGMA COPPER CO TUCSON ARIZ REPORTED A 61 PLUNGE IN NET INCOME BUT ANALYSTS WEREN'T DISCOURAGED BY THE EARNINGS REPORTS WHICH WERE IN LINE WITH WHAT THEY HAD ANTICIPATED PHELPS DODGE COSTS WERE LOWER THAN SOME EXPECTATIONS SAID ANTHONY RIZZUTO ANALYST AT BEAR STEARNS & CO I THOUGHT IT WAS A SOLID PERFORMANCE HE SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PHELPS DODGE STOCK CLOSED UNCHANGED AT 45625 A SHARE WHILE MAGMA COPPER STOCK FELL 375 CENTS OR 33 TO CLOSE AT 11 A SHARE PHELPS DODGE REPORTED NET INCOME OF 463 MILLION OR 66 CENTS A SHARE COMPARED WITH 658 MILLION OR 94 CENTS A SHARE IN THE YEAREARLIER SECOND QUARTER SALES DECLINED 51 TO 6298 MILLION FROM 6633 MILLION AVERAGE COPPER PRICES DECLINED TO ABOUT 835 CENTS A POUND FROM 102 A POUND YEAR TO YEAR FOR THE SIX MONTHS THE COMPANY REPORTED NET INCOME ALMOST TRIPLED TO 1066 MILLION OR 151 A SHARE FROM 379 MILLION OR 54 CENTS A SHARE IN THE LATEST SIX MONTHS THE COMPANY RECORDED A CHARGE OF 799 MILLION OR 113 A SHARE FOR A CHANGE IN ACCOUNTING SALES ROSE 34 TO 13 BILLION FROM 125 BILLION PHELPS DODGE'S INDUSTRIAL UNIT WHICH MAKES TRUCK RIMS CARBON BLACK WIRE AND CABLE REPORTED HIGHER OPERATING EARNINGS IN SPITE OF WEAK INTERNATIONAL ECONOMIES MAGMA COPPER REPORTED THAT LAST WINTER'S FLOODING AT ITS PINTO VALLEY MINE NEAR MIAMI ARIZ RESULTED IN PRODUCTION FROM LOWERGRADE ORE WHICH LOWERED NET INCOME BY ABOUT FIVE CENTS A SHARE THE COMPANY SAID OPERATIONS HAVE NOW RETURNED TO NORMAL THE COMPANY REPORTED NET INCOME OF 47 MILLION OR 10 CENTS A SHARE COMPARED WITH 12 MILLION OR 26 CENTS A SHARE THE YEAREARLIER QUARTER INCLUDED A CHARGE OF 3 MILLION FOR EARLY PAYMENT OF DEBT SALES FELL 67 TO 1902 MILLION FROM 2039 MILLION BECAUSE OF LOWER COPPER PRICES FOR THE SIX MONTHS THE COMPANY REPORTED NET FELL 77 TO 5 MILLION OR 10 CENTS A SHARE FROM 218 MILLION OR 77 CENTS A SHARE THE YEAR EARLIER SALES FELL 47 TO 3848 MILLION FROM 4038 MILLION 9307230147 930723 DIVIDEND NEWS RYMAC MORTGAGE INVESTMENT CORP RYMAC MORTGAGE INVESTMENT CORP STEUBENVILLE OHIO OMITTED ITS DIVIDEND FOR THE SECOND CONSECUTIVE QUARTER BLAMING UNPRECEDENTED LEVELS OF MORTGAGE PREPAYMENTS THE REAL ESTATE INVESTMENT TRUST HAD A SECONDQUARTER LOSS OF 63 MILLION OR 120 A SHARE COMPARED WITH A DEFICIT OF 19 MILLION OR 37 CENTS A SHARE A YEAR EARLIER 9307230146 930723 WHO'S NEWS CHICAGO BOARD OPTIONS EXCHANGE CHICAGO BOARD OPTIONS EXCHANGE CHICAGO GERRY O'CONNELL WAS NAMED FIRST VICE PRESIDENT SYSTEMS DIVISION SUCCEEDING KRUNO HUITZINGH WHO RECENTLY SAID HE WAS JOINING ALLMERICA FINANCIAL GROUP MR O'CONNELL HAS BEEN VICE PRESIDENT SYSTEMS DEVELOPMENT 9307230145 930723 HIGHER PROFIT IS SEEN BY AMCAST INDUSTRIAL FOR ITS FISCAL YEAR DAYTON OHIO AMCAST INDUSTRIAL CORP IS LIKELY TO POST HIGHER PROFIT FOR THE FISCAL YEAR ENDING AUG 31 BUT PERSHARE EARNINGS WILL FALL BECAUSE OF A LARGER NUMBER OF SHARES OUTSTANDING SAID LEO W LADEHOFF CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER NEXT YEAR HOWEVER THE PRODUCER OF AUTOMOTIVE AND FLOWCONTROL PRODUCTS WILL BEGIN A DECADE OF RAPID GROWTH MR LADEHOFF SAID AMCAST'S EXPERTISE IN ALUMINUM CASTING OPENS AN OPPORTUNITY TO EXPAND AUTO AND TRUCKPARTS SALES AS AUTO MAKERS INCREASE USE OF THE LIGHT METAL HE SAID WE ARE HAVING A DECENT FOURTH QUARTER MR LADEHOFF SAID BUT IT'S TOO EARLY TO SAY WHETHER SHARE EARNINGS WILL EQUAL THE 42 CENTS EARNED FROM CONTINUING OPERATIONS A YEAR AGO NET INCOME FOR FISCAL 1993 IS LIKELY TO BE BETWEEN 140 AND 150 A SHARE MR LADEHOFF SAID WHICH WOULD BE DOWN FROM THE 166 EARNED FROM CONTINUING OPERATIONS IN FISCAL 1992 HOWEVER NET PROBABLY WILL EXCEED THE 12 MILLION EARNED FROM CONTINUING OPERATIONS LAST YEAR HE SAID AMCAST HAS NEARLY 84 MILLION SHARES OUTSTANDING UP FROM AN AVERAGE OF 72 MILLION IN FISCAL 1992 BECAUSE OF A PUBLIC STOCK SALE IN APRIL 1992 ALL SALES AND EARNINGS COMPARISONS EXCLUDE RESULTS OF STANLEY G FLAGG & CO A MAKER OF IRON PIPE FITTINGS THAT AMCAST LAST YEAR DECIDED TO SELL AMCAST MADE A PROVISION OF 22 MILLION IN THE FISCAL 1992 FOURTH QUARTER TO COVER THE ANTICIPATED LOSS ON THE SALE OF FLAGG AND OPERATING LOSSES EXPECTED UNTIL IT IS SOLD INCLUDING THAT CHARGE AMCAST HAD A NET LOSS OF 123 MILLION OR 148 A SHARE IN THE 1992 FOURTH QUARTER AND A LOSS OF 58 MILLION OR 81 CENTS A SHARE FOR LAST FISCAL YEAR MR LADEHOFF SAID SALES FOR FISCAL 1993 WILL DIP TO BETWEEN 225 MILLION AND 230 MILLION FROM 2368 MILLION IN FISCAL 1992 MAINLY BECAUSE OF LOWER METALS PRICES ALSO IN FISCAL 1993 FEW OF THE CARS FOR WHICH AMCAST MADE WHEELS WERE BIG WINNERS AMCAST DIDN'T MAKE WHEELS FOR 1993 LIGHT TRUCKS AND UTILITY VEHICLES WHICH WERE HOT SELLERS AND SOME GENERAL MOTORS CARS THAT WERE POPULAR IN 1992 DID LESS WELL IN 1993 MR LADEHOFF SAID 9307230144 930723 NORANDA FOREST ISSUE OF DEBT TORONTO NORANDA FOREST INC SAID IT ARRANGED FOR A US150 MILLION ISSUE OF 75 DEBENTURES MATURING JULY 15 2003 PRICED TO YIELD 761 NET PROCEEDS WILL BE USED TO REDUCE BANK DEBT AND FOR GENERAL CORPORATE PURPOSES THE FORESTPRODUCTS COMPANY SAID THE UNDERWRITING GROUP CONSISTS OF FIRST BOSTON CORP AS WELL AS GOLDMAN SACHS & CO SALOMON BROTHERS INC AND TRILON SECURITIES INTERNATIONAL 9307230143 930723 WHO'S NEWS PAINEWEBBER PICKS FRANK MINARD TO HEAD MITCHELL HUTCHINS NEW YORK PAINEWEBBER INC NAMED A RECENT HIRE FRANK PL MINARD TO HEAD ITS MONEYMANAGMENT UNIT MITCHELL HUTCHINS ASSET MANAGEMENT INC WHICH HAS RECENTLY BEEN HIT BY DEFECTIONS MR MINARD JOINED PAINEWEBBER AS AN EXECUTIVE VICE PRESIDENT JUNE 1 FROM HIS POSITION AS A MANAGING DIRECTOR OF OPPENHEIMER & CO'S OPPENHEIMER CAPITAL DIVISION HIS APPOINTMENT TO THE POSTS OF CHAIRMAN AND CHIEF EXECUTIVE AT MITCHELL HUTCHINS FOLLOWED A WAVE OF DEFECTIONS BY SEVERAL OFFICIALS AND PORTFOLIO MANAGERS AT THE UNIT'S MITCHELL HUTCHINS INSTITUTIONAL INVESTORS SUBSIDIARY THE SUBSIDIARY'S PRESIDENT STEPHEN E CANTER ITS FIXEDINCOME CHIEF INVESTMENT OFFICER EMAD A ZIKRY AND NINE OF THE FIRM'S OTHER EMPLOYEES RESIGNED IN APRIL PROMPTING PAINEWEBBER TO FILE SUIT AGAINST MR CANTER AND MR ZIKRY LAST MONTH PAINEWEBBER SETTLED THE LAWSUIT WHICH HAD CHARGED THAT THE TWO EXECUTIVES CONSPIRED TO MISAPPROPRIATE PROPRIETARY AND CONFIDENTIAL CLIENT INFORMATION AND PASSED IT TO THEIR NEW EMPLOYER THE US UNIT OF KLEINWORT BENSON GROUP PLC THE LONDONBASED INVESTMENT BANK PAINEWEBBER SAID THE SUIT WAS SETTLED TO ITS SATISFACTION MR MINARD COULD NOT BE REACHED FOR COMMENT 9307230142 930723 HUTCHISON WHAMPOA'S WOES LIE IN UK TELECOMMUNICATIONS OPERATIONS TALLY LOSSES BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHILE MUCH OF HONG KONG'S BUSINESS COMMUNITY FRETS ABOUT AN IMPENDING SLOWDOWN IN CHINA'S ECONOMY LI KASHING IS FOCUSING ON PROBLEMS FARTHER AFIELD MOUNTING LOSSES AT HIS TELECOMMUNICATIONS OPERATIONS IN THE UK DESPITE LAST YEAR'S VENTURES IN CHINA BY MR LI'S HUTCHISON WHAMPOA LTD THE DIVERSIFIED GROUP'S BIGGEST INTERNATIONAL HEADACHE IS STILL ITS ESTIMATED HK3 BILLION US387 MILLION EXPANSION INTO MOBILE COMMUNICATIONS IN BRITAIN THE COMPANY WITH BUSINESSES IN CONTAINER TERMINALS PROPERTY DEVELOPMENT RETAIL AND TELECOMMUNICATIONS HOPES TO EASE THAT BURDEN SOON BY BRINGING IN AN EQUITY PARTNER POSSIBLY SUPPLANTING HUTCHISON AS THE MAJORITY SHAREHOLDER OF HUTCHISON TELECOMMUNICATIONS UK LTD DILUTING THE UK STAKE WOULD REPRESENT A FURTHER RETREAT FROM THE WESTERN EXPANSION HUTCHISON BEGAN SEVERAL YEARS AGO WHEN IT BOUGHT 49 OF CANADA'S HUSKY OIL LTD SINCE THEN HUTCHISON HAS TURNED ITS ATTENTION TOWARD CHINA A SHIFT THAT IS EXPECTED TO CHANGE THE COMPANY CULTURE EVENTUALLY FROM THAT OF A BRITISHSTYLE CONGLOMERATE TO ONE WITH A STRONGER CHINESE IDENTITY FROM A STRATEGIC POINT OF VIEW THERE'S NO QUESTION THAT MR LI FEELS CHINA OFFERS MORE LONGTERM OPPORTUNITIES THAN DOES EUROPE SAYS HUTCHISON MANAGING DIRECTOR SIMON MURRAY NONETHELESS HUTCHISON'S MOVE INTO CHINA IS RELATIVELY MEEK SO FAR EVEN IF WE IMPLEMENTED ALL OF OUR MEMORANDUMS OF UNDERSTANDING ON THE TABLE IN CHINA OUR TOTAL COMMITMENT INCLUDING BANK BORROWINGS WOULD STILL BE LESS THAN 15 OF HUTCHISON'S TOTAL ASSETS SAYS RICHARD LI MR LI'S SON AND A HUTCHISON EXECUTIVE DIRECTOR EARNINGS CONTRIBUTIONS FROM THE CHINA PROJECTS PRIMARILY PORTS PROPERTY DEVELOPMENT AND POWER STATIONS AREN'T EXPECTED TO REACH MORE THAN HK200 MILLION NEXT YEAR LESS THAN 3 OF THE HK685 BILLION THAT SG WARBURG SECURITIES EXPECTS HUTCHISON TO EARN IN 1994 LOSSES AT THE UK OPERATIONS MEANWHILE MAY SOON OFFSET RISING PROFITS FROM OTHER PARTS OF HUTCHISON'S TELECOMMUNICATIONS UNIT SLOWING EARNINGS GROWTH FOR THE REST OF THE COMPANY THE UK LOSSES ARE MAINLY DUE TO HUTCHISON'S INVESTMENT IN THE PERSONAL COMMUNICATIONS NETWORK OR PCN A LARGELY UNTRIED TECHNOLOGY THAT WOULD LET USERS SEND FAXES OR PAY BILLS FROM A CELLULAR PHONE ONCE PCN COMES ON LINE AS IT IS EXPECTED TO DO EARLY NEXT YEAR HUTCHISON WILL HAVE TO BEGIN CHARGING THE MONEY IT HAS SPENT ON PCN AGAINST ANY EARNINGS FROM THE NETWORK AS A RESULT LOSSES FROM THE UK OPERATIONS WILL BALLOON BY 1995 REACHING AS MUCH AS HK115 BILLION PREDICTS KAMMING WONG A WARBURG ANALYST DESPITE THAT LOSS MR WONG STILL EXPECTS HUTCHISON'S OVERALL NET TO RISE SUBSTANTIALLY TO HK808 BILLION IN 1995 MR MURRAY CALLS WARBURG'S FORECAST FOR THE BRITISH UNIT A LITTLE PESSIMISTIC BUT HE CONCEDES THAT THE UK OPERATIONS ARE FACING SIGNIFICANT LOSSES STILL MR MURRAY SAYS EARNINGS FROM HUTCHISON'S PAGING BUSINESS IN HONG KONG AND EVENTUAL PROFITS FROM CELLULAR TELEPHONE OPERATIONS IN FRANCE AND GERMANY SHOULD CONTRIBUTE ENOUGH TO KEEP HUTCHISON TELECOMMUNICATIONS' EARNINGS RISING IN 1993 AND 1994 THE SUBSIDIARY SHOULD REMAIN PROFITABLE IN 1995 DESPITE ANY DECLINE OWING TO THE UK OPERATIONS MR MURRAY ADDS WARBURG ESTIMATES THAT HUTCHISON TELECOMMUNICATIONS EARNED HK312 MILLION IN 1992 DESPITE A LOSS ESTIMATED AT HK250 MILLION FROM THE UK OPERATIONS HUTCHISON'S OWN NUMBERS SUGGEST THE UK UNIT WILL SHOW A LOSS OF AROUND HK400 MILLION IN 1995 ASSUMING HUTCHISON DOESN'T SELL ANY OF THE UK BUSINESSES BESIDES PCN THE UK OPERATIONS INCLUDE THE SALES OF CELLULAR TELEPHONE HANDSETS PAGING SERVICES AND AN ADVANCED CORDLESS TELEPHONE NETWORK CALLED CT2 WHILE THE FORMER TWO BUSINESSES ARE DOING WELL CT2 SALES IN BRITAIN HAVE BEEN BELOW FORECASTS ANALYSTS SAY CT2 WHICH HAD BEEN FORECAST TO CONTRIBUTE NEARLY HK200 MILLION IN PROFIT BY 1995 NOW IS EXPECTED MERELY TO BREAK EVEN IF WE STAY ON OUR OWN WE MAY DECIDE TO GO WITH PCN ALONE AND EXIT THOSE OTHER BUSINESSES SAYS MR MURRAY HUTCHISON OWNS 65 OF HUTCHISON TELECOMMUNICATIONS UK BRITISH AEROSPACE PLC OWNS 30 AND BARCLAYS PLC HOLDS THE REMAINING 5 BRITISH AEROSPACE HAS BEEN SHOPPING ITS STAKE AROUND SINCE LATE LAST YEAR AND HUTCHISON IS HELPING IN THE HUNT FOR A BUYER MR MURRAY SAYS THE COMPANY IS IN TALKS WITH SEVERAL PARTIES ALTHOUGH A TRANSACTION APPARENTLY REMAINS AT LEAST WEEKS AWAY IT'S LIKELY THAT IF SOMEBODY COMES IN THEY WILL WANT CONTROL MR MURRAY SAYS ANALYSTS BELIEVE HUTCHISON MIGHT EVENTUALLY PULL OUT OF THE UK OPERATIONS ALTOGETHER IF IT GIVES UP CONTROL THE UK OPERATIONS AREN'T THE ONLY PART OF HUTCHISON'S TELECOMMUNICATIONS BUSINESS THAT MIGHT BE FOR SALE MANY ANALYSTS IN THE COLONY SAY STAR TV THE PANASIAN SATELLITE NETWORK UNDER THE WING OF THE YOUNGER MR LI MIGHT BE SOLD IF THE RIGHT PRICE IS OFFERED HUTCHISON OWNS HALF OF THE SATELLITE NETWORK THE BALANCE OF WHICH IS HELD BY THE LI FAMILY THE YOUNGER MR LI SAYS THE SATELLITE BUSINESS IS NOT FOR SALE IN WHOLE OR IN PART HOWEVER HE ADDS WE CAN'T STOP PEOPLE KNOCKING ON OUR DOOR HUTCHISON ALREADY HAS DEALT WITH ANOTHER WESTERN TROUBLE SPOT HUSKY OIL WHICH DRAGGED DOWN HUTCHISON'S NET PROFIT IN THE PAST TWO YEARS HUSKY BASED IN CALGARY CANADA IS EXPECTED TO POST NET INCOME OF AS MUCH AS C80 MILLION US63 MILLION IN 1993 ABOUT HALF OF WHICH WILL COUNT TOWARD HUTCHISON'S BOTTOM LINE THE CHINA PROJECTS INCLUDE A 50 STAKE IN SHANGHAI CONTAINER TERMINALS WHICH HAS TAKEN OVER THE OPERATION OF SHANGHAI'S THREE TERMINALS THE CONTAINERTERMINAL CONCERN A JOINT VENTURE WITH THE SHANGHAI PORT AUTHORITY PLANS TO DOUBLE CAPACITY AT THE THREE TERMINALS BY 1995 AND HAS FIRSTREFUSAL RIGHTS TO DEVELOP FUTURE CONTAINER TERMINALS FOR THE CITY MR MURRAY SAYS HUTCHISON SPENT JUST OVER HK1 BILLION FOR ITS HALF OF SHANGHAI CONTAINER TERMINALS AND WILL FUND ITS SHARE OF FUTURE DEVELOPMENT HE PLAYS DOWN ESTIMATES THAT THE COMPANY COULD SPEND AS MUCH AS HK6 BILLION TO TRANSFORM SHANGHAI'S SHALLOW HARBOR INTO A DEEPWATER PORT NOBODY'S SUGGESTING WE'VE DECIDED TO DO THAT ALTHOUGH WE'RE STUDYING THE POSSIBILITY HE SAYS MR MURRAY SAYS HE BELIEVES HUTCHISON'S INFRASTRUCTURE PROJECTS ARE IMPORTANT ENOUGH TO CHINA'S DEVELOPMENT TO ESCAPE THE COUNTRY'S LOOMING AUSTERITY MEASURES MEANWHILE PRESALES OF THE COMPANY'S HALF DOZEN MAINLAND PROPERTY DEVELOPMENTS SHOULD BE SUFFICIENT TO FINANCE THOSE PROJECTS ANALYSTS SAY MR MURRAY ALSO SAYS THERE HAS BEEN NO PERCEPTIBLE SOFTENING OF DEMAND FOR FLATS AT LAKEVIEW A DONGGUAN GUANGDONG RESIDENTIAL DEVELOPMENT IN WHICH HUTCHISON HOLDS A 10 INTEREST 9307230141 930723 TYCO AND FISHERPRICE POST POORER RESULTS FOR THE 2ND QUARTER A WALL STREET JOURNAL NEWS ROUNDUP TYCO TOYS INC AND FISHERPRICE INC POSTED POORER RESULTS THAN A YEAR AGO REFLECTING A LACK OF HOT NEW TOYS AND RETAILER RESOLVE TO CUT ALREADY SLIM INVENTORIES TYCO POSTED A SECONDQUARTER LOSS OF 35 MILLION OR 11 CENTS A SHARE COMWITH YEARAGO NET INCOME OF 76 MILLION OR 25 CENTS A SHARE SALES WERE DOWN SLIGHTLY AT 1467 MILLION FROM 147 MILLION A YEAR AGO TYCO MOUNT LAUREL NJ ALSO SAID IT EXPECTS EARNINGS FOR 1993 TO TRAIL THE 18 MILLION OR 60 CENTS A SHARE PROFIT IT POSTED LAST YEAR THE TOYMAKER SAID ITS OVERSEAS AND MATCHBOX CAR BUSINESS HAS BEEN BRISK BUT US SALES OF MOST OF ITS TOYS INCLUDING LESSEXPENSIVE IMPORTS AT ITS PLAYTIME PRODUCTS SUBSIDIARY HAVE BEEN SOFT THE COMPANY SAID IT EXPECTED THE SOFTNESS TO CONTINUE FOR THE SECOND HALF OF THE YEAR FOR THE FIRST HALF THE COMPANY REPORTED A LOSS OF 165 MILLION OR 51 CENTS A SHARE COMPARED WITH NET OF 105 MILLION OR 38 CENTS A SHARE A YEAR AGO SALES DECLINED 12 TO 247 MILLION FROM 2813 MILLION THE YEAR BEFORE FISHERPRICE OF EAST AURORA NY POSTED NET INCOME OF 62 MILLION OR 20 CENTS A SHARE DOWN 28 FROM 86 MILLION OR 27 CENTS A SHARE A YEAR BEFORE REVENUE ROSE 3 TO 1574 MILLION FROM 1534 MILLION THE COMPANY BLAMED INCREASED ADVERTISING AND SELLING EXPENSES FOR THE EARNINGS DECLINE THOUGH DOWN FISHERPRICE'S RESULTS EXCEEDED MANY ANALYSTS' FORECASTS WALL STREET'S EARNINGS ESTIMATES FOR THE SECOND QUARTER RANGED FROM EIGHT CENTS TO ABOUT 20 CENTS A SHARE AND ANALYSTS EXPECTED SALES OF BETWEEN 140 MILLION AND 149 MILLION JILL KRUTICK ANALYST FOR SALOMON BROTHERS SAID SHE EXPECTED THE COMPANY TO REPORT PERSHARE EARNINGS OF 15 CENTS ON SALES OF 140 MILLION SHE UPGRADED HER RECOMMENDATION ON THE STOCK TO A BUY AND HER ANNUAL EARNINGS ESTIMATE TO 155 A SHARE FROM 140 PARTLY BECAUSE OF STRONG GROWTH IN INTERNATIONAL SALES FOR THE SIX MONTHS FISHERPRICE HAD NET OF 52 MILLION OR 17 CENTS A SHARE DOWN FROM 12 MILLION OR 39 CENTS A SHARE THE YEAR BEFORE REVENUE FELL 5 TO 2848 MILLION FROM 3002 MILLION 9307230140 930723 INDIA AUTHORIZES 2 PRIVATE GROUPS TO SET UP BANKS BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI IN A RADICAL INITIATIVE FURTHERING INDIA'S FINANCIALSECTOR REFORMS THE RESERVE BANK OF INDIA HAS LICENSED TWO PRIVATESECTOR BANKS THE FIRST IN MANY YEARS AND MORE APPLICATIONS TO SET UP PRIVATESECTOR BANKS ARE AT VARIOUS STAGES OF PROCESSING THE BANK SAID WEDNESDAY THE RESERVE BANK SAID IN BOMBAY THAT UNIT TRUST OF INDIA THE COUNTRY'S LARGEST MUTUAL FUND AND HOUSING DEVELOPMENT FINANCE CORP A PRIVATE HOUSING FINANCE INSTITUTION HAVE RECEIVED PERMISSION TO SET UP BANKING COMPANIES THE LONGAWAITED ANNOUNCEMENT MARKS THE FIRST MAJOR STRUCTURAL REFORM IN THE COUNTRY'S BANKING SYSTEM SINCE IT WAS NATIONALIZED IN 1969 THIS IS THE FIRST TIME IN ALMOST A QUARTER CENTURY THAT PRIVATE BANKS HAVE BEEN PERMITTED IN WHAT HAS BEEN A CLOSED AND GOVERNMENTREGULATED BANKING SYSTEM DOMINATED BY NATIONALIZED BANKS IN RECENT MONTHS THE GOVERNMENT HAS OFTEN INDICATED THAT IT WOULD ALLOW PRIVATE BANKS TO OPERATE OFFICIALS SAY THAT THE RESERVE BANK'S LICENSING OF THE NEW BANKS INDICATES THE GOVERNMENT'S RESOLVE TO STAY ON TRACK IN ITS ECONOMIC REFORM PROGRAM WHICH PV NARASIMHA RAO'S ADMINISTRATION LAUNCHED SOON AFTER IT ASSUMED OFFICE IN MID1991 IT IS A CLEAR INDICATION THAT WE ARE IMPLEMENTING FARREACHING FINANCIALSECTOR REFORMS ALONG THE LINES THAT THE GOVERNMENT HAS INDICATED FREQUENTLY A FINANCE MINISTRY OFFICIAL SAID THE PROPOSED BANK BY HOUSING DEVELOPMENT FINANCE WILL HAVE AN INITIAL PAIDUP CAPITAL OF THREE BILLION RUPEES 964 MILLION AND THE SHARES OF THE NEW BANK WILL BE HELD BY THE COMPANY ITS EMPLOYEES AND THE PUBLIC NO FURTHER DETAILS WERE ANNOUNCED THE PROPOSED BANK BY UNIT TRUST OF INDIA WILL HAVE PAIDUP CAPITAL OF ONE BILLION RUPEES AND NEXT YEAR WILL RAISE AN ADDITIONAL 15 BILLION RUPEES IN A PUBLIC ISSUE THE RESERVE BANK SAID UNIT TRUST'S BANK WOULD CREATE A FINANCIAL SUPERMARKET CATERING TO THE DIVERSE NEEDS OF ITS CLIENTELE THESE DECISIONS FOLLOW THE ANNOUNCEMENT IN JANUARY OF GUIDELINES FOR SETTING UP NEW PRIVATESECTOR BANKS THE RESERVE BANK SAID THAT THROUGH THE END OF MAY IT HAD RECEIVED 123 APPLICATIONS TO ESTABLISH PRIVATE BANKING OPERATIONS BUT OFFICIALS SAY THAT THE RESERVE BANK IS UNLIKELY TO ALLOW A DELUGE OF NEW BANKS AND THAT IT PROBABLY WILL INITIALLY RESTRICT NEW LICENSES TO FINANCIAL INSTITUTIONS AND TERMLENDING INSTITUTIONS THE NEXT BANK TO BE PERMITTED IS LIKELY TO BE SET UP BY INDUSTRIAL CREDIT & INVESTMENT CORP OF INDIA A TERMLENDING INSTITUTION SEVERAL MAJOR INDUSTRIAL GROUPS ARE HOWEVER IN LINE TO ESTABLISH PRIVATE BANKS MANY LIKE THE TATA GROUP OR RELIANCE INDUSTRIES LTD EITHER ALREADY OWN FINANCE COMPANIES OR HAVE SET UP NEW ONES BUT WITH SEVERAL PUBLICSECTOR INDIAN BANKS AND FOUR MAJOR FOREIGN BANKS OPERATING IN INDIA CAUGHT UP IN LAST YEAR'S 128 BILLION SECURITIES SCANDAL IN WHICH MONEY WAS SIPHONED OUT OF THE BANKING SYSTEM INTO THE STOCK MARKET THE GOVERNMENT ISN'T EXPECTED TO LICENSE CORPORATE BANKS UNTIL THE INQUIRIES INTO THE SCANDAL ARE COMPLETED 9307230139 930723 TV BROADCASTERS AGREE ON ASIA EXPANSION ACCORD REACHED ON LEASING OF CAPACITY ON SATELLITE BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE LATEST SHOT IN THE FIGHT FOR A PIECE OF ASIA'S BURGEONING TELEVISION MARKET HAS BEEN FIRED A CONSORTIUM OF INTERNATIONAL BROADCASTERS AGREED IN PRINCIPLE THIS WEEK TO LEASE SATELLITE CAPACITY THAT IS NEEDED TO EXPAND DISTRIBUTION OF THEIR TELEVISION PROGRAMMING IN THE REGION THE CONSORTIUM WHICH HELD MEETINGS HERE THIS WEEK IS COMPOSED OF HONG KONG'S TELEVISION BROADCASTS INTERNATIONAL LTD TURNER BROADCASTING SYSTEM INC ESPN ASIA HOME BOX OFFICE ASIA AND AUSTRALIAN BROADCASTING CORP THEY AGREED TO LEASE 16 TRANSPONDERS OR TRANSMISSION CHANNELS ON THE APSTAR1 SATELLITE FROM THE APT SATELLITE CO FOR AS MUCH AS 250 MILLION IN JUNE THE GROUP ANNOUNCED THAT IT HAD FORMED A CONSORTIUM TO COORDINATE ITS ACTIVITIES IN THE REGION SINCE THEN AT LEAST TWO OTHER PROGRAM PROVIDERS AGREED WITH THE CONSORTIUM TO RESERVE TRANSPONDER SPACE ON THE SATELLITE ACCORDING TO SK FUNG GENERAL MANAGER OF THE INTERNATIONAL ARM OF TELEVISION BROADCASTS THEY INCLUDE AUSTRALIA'S NINE NETWORK AUSTRALIA LTD IN WHICH AUSTRALIAN MEDIA BARON KERRY PACKER HAS A STAKE AND THE DISCOVERY CHANNEL A US DOCUMENTARY FILM CHANNEL AND UNIT OF METROGOLDWYNMAYER INC IN ADDITION ASIAN BUSINESS NEWS AND VIACOM INC EACH RESERVED A TRANSPONDER AN EXECUTIVE INVOLVED IN THE TALKS SAYS EXECUTIVES AT ASIAN BUSINESS NEWS COULDN'T BE REACHED AND VIACOM OFFICIALS HAD NO COMMENT MR FUNG SAYS THE CONSORTIUM IS HOLDING TALKS WITH OTHER PROGRAM PROVIDERS INTERESTED IN ACQUIRING CAPACITY ON APSTAR1 HE ALSO SAID DEMAND FOR TRANSPONDERS ON THE SATELLITE NOW EXCEEDS SUPPLY TELEVISION BROADCASTS INTERNATIONAL KNOWN AS TVBI AND A UNIT OF TELEVISION BROADCASTS LTD HAS RESERVED FIVE OUT OF THE 16 TRANSPONDERS TAKEN BY THE GROUP NOT INCLUDING ANY THAT MAY HAVE BEEN RESERVED BY ASIAN BUSINESS NEWS AND VIACOM TVBI SAYS IT PLANS TO INVEST 40 MILLION IN FACILITIES AND PROGRAMMING FOR ITS NEW SATELLITETELEVISION SERVICE WHICH IT WILL BEGIN BROADCASTING FROM INDONESIA'S PALAPA B2P SATELLITE LATER THIS YEAR TURNER BROADCASTING HAS RESERVED TWO TRANSPONDERS ONE FOR CABLE NEWS NETWORK INTERNATIONAL WHICH IT ALREADY DISTRIBUTES TO SOUTHEAST ASIA OVER THE PALAPA B2P SATELLITE AND TNT A GENERAL ENTERTAINMENT CHANNEL THAT HAS YET TO BE INTRODUCED TO THE REGION ACCORDING TO MR FUNG MR PACKER HAS RESERVED FOUR TRANSPONDERS AN EXECUTIVE FROM CHANNEL NINE RECENTLY SAID ON AUSTRALIAN TELEVISION THAT MR PACKER IS LOOKING AT ASIA ANALYSTS SAY HE IS INTERESTED IN BEAMING AUSTRALIAN HORSE RACES TO THE REGION MR FUNG SAID ESPN WHICH HAS RESERVED ONE TRANSPONDER IS THINKING ABOUT ADDING ANOTHER ESPN IS 80OWNED BY CAPITAL CITIES/ABC INC HBO A UNIT OF TIME WARNER INC HAS RESERVED TWO TRANSPONDERS ACCORDING TO AN EXECUTIVE INVOLVED IN THE TALKS AN HBO EXECUTIVE COULDN'T CONFIRM THAT THE COMPANY HAD TAKEN A SECOND TRANSPONDER BUT HE SAID THAT WAS HBO'S INTENTION APSTAR1 IS SCHEDULED TO BE LAUNCHED BY THE MIDDLE OF NEXT YEAR ITS FOOTPRINT OR BROADCAST REACH WILL COVER CHINA TAIWAN SOUTHEAST ASIA JAPAN AND KOREA HOWEVER MR FUNG SAID TVBI'S MAIN TARGET IS CHINA AND TAIWAN OTHER CONSORTIUM MEMBERS INCLUDING ESPN AND HBO HAVE RECENTLY SAID THEY WILL MAKE THEIR PROGRAMMING AVAILABLE IN MANDARIN MR FUNG ALSO SAID THAT THE LIKELIHOOD IS STRONG THAT WE COULD LAUNCH A SATELLITE IN THE NEXT TWO TO THREE YEARS EXECUTIVES FROM TURNER BROADCASTING WHICH IS EAGER TO INCREASE ITS DISTRIBUTION IN INDIA IS TALKING WITH AT LEAST THREE SATELLITE OPERATORS ROBERT E ROSS VICE PRESIDENT OF INTERNATIONAL BUSINESS AND NETWORK DEVELOPMENT FOR TURNER CALLED THE AGREEMENT WITH APT SATELLITE AN INTERIM STEP PENDING THE AVAILABILITY OF A MORE POWERFUL SATELLITE WE WANT TO CREATE A PROGRAMMING NEIGHBORHOOD MR ROSS SAID OF THE CONSORTIUM ADDING THAT THE GROUP WAS TAKING AN APPROACH OPPOSITE THAT OF STAR TV ASIA'S DOMINANT SATELLITE TELEVISION BROADCASTER THEY HAVE NOT HAD AN OPEN ARCHITECTURE MR ROSS SAID WE SAY THE MORE THE MERRIER TURNER HBO ESPN AND TVBI HAVE HELD TALKS OVER THE PAST TWO YEARS WITH STAR BUT ULTIMATELY FAILED TO REACH AN AGREEMENT MR FUNG SAID THE CONSORTIUM'S NEXT STEP IS TO FOCUS ITS ATTENTION ON BUILDING DOWNSTREAM ACTIVITIES SUCH AS GROUND DISTRIBUTION AND MARKETING ENCRYPTION AND PROGRAM TRANSMISSION 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 9307230138 930723 WHO'S NEWS WELLCOME'S CHAIRMAN WILL RETIRE AUG 31 FOR HEALTH REASONS LONDON WELLCOME PLC UNEXPECTEDLY ANNOUNCED THAT ITS CHAIRMAN SIR ALISTAIR FRAME WILL RETIRE BECAUSE OF ILL HEALTH THE UK DRUG COMPANY SAID CHIEF EXECUTIVE OFFICER JOHN ROBB WOULD TEMPORARILY FILL THE POST OF CHAIRMAN AFTER SIR ALISTAIR'S RETIREMENT AUG 31 WELLCOME SAID THE COMPANY IS ACTIVELY SEEKING A SUCCESSOR FOR SIR ALISTAIR A SPOKESWOMAN SAID WE ARE SORRY TO SEE SIR ALISTAIR GO AFTER HIS VALUABLE CONTRIBUTIONS TO THE COMPANY ANALYSTS SAID THAT ALTHOUGH THE ANNOUNCEMENT WAS A SURPRISE THE COMPANY'S OPERATIONS SHOULDN'T BE AFFECTED ONE LONDON ANALYST SUGGESTED THAT SIR ALISTAIR HAD BEEN SOMEWHAT OF A FIGUREHEAD AT WELLCOME IN 1992 SALES AT WELLCOME ROSE 19 TO 31 BILLION FROM 26 BILLION PRETAX PROFIT FROM OPERATIONS JUMPED 28 TO 919 MILLION FROM 717 MILLION LAST YEAR SAW MAJOR RESTRUCTURING OF CAPITAL AT WELLCOME UNDER THE GUIDANCE OF SIR ALISTAIR THE WELLCOME TRUST SOLD SOME 288 MILLION SHARES IN WELLCOME PLC REDUCING ITS SHAREHOLDING TO 399 FROM 735 AT THE TIME DESPITE WEAK STOCK MARKETS THE INTERNATIONAL OFFERING WAS HAILED AS A SUCCESS BY THE COMPANY 9307230137 930723 DIVIDEND NEWS MARTIN MARIETTA CORP MARTIN MARIETTA CORP BETHESDA MD DECLARED A 2FOR1 STOCK SPLIT PAYABLE SEPT 30 TO STOCK OF RECORD SEPT 1 THE AEROSPACE CONCERN ALSO RAISED ITS QUARTERLY DIVIDEND TO 45 CENTS FROM 42 CENTS PAYABLE SEPT 30 TO SHAREHOLDERS OF RECORD SEPT 1 MARTIN MARIETTA CURRENTLY HAS 476 MILLION SHARES OUTSTANDING 9307230136 930723 CALGON CARBON STOCK REPURCHASE PITTSBURGH CALGON CARBON CORP A MAKER OF ACTIVATED CARBON PRODUCTS SAID ITS BOARD AUTHORIZED THE PERIODIC REPURCHASE OF AS MANY AS TWO MILLION SHARES CALGON CARBON HAD AN AVERAGE OF 41 MILLION COMMON SHARES OUTSTANDING IN THE SECOND QUARTER 9307230135 930723 GRANITE CONSTRUCTION CONTRACT WATSONVILLE CALIF GRANITE CONSTRUCTION INC SAID ITS SUBSIDIARY GRANITE CONSTRUCTION CO SIGNED A 56 MILLION CONTRACT TO BUILD A PRIVATE AUTOMATED TOLL ROAD ALONGSIDE STATE ROUTE 91 IN ORANGE COUNTY CALIF THE COMPANY ALSO SAID IT WAS MAKING AN UNDISCLOSED EQUITY INVESTMENT IN THE ROAD 9307230134 930723 INITIAL JOBLESS CLAIMS SHOW SHARP RISE IN LATEST WEEK WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE A SHARP 24000 TO 352000 IN THE WEEK ENDED JULY 17 IN PART BECAUSE OF THE FLOODS IN THE MIDWEST THE LABOR DEPARTMENT SAID STATES RECORDED MORE NEW CLAIMS FOR JOBLESS PAY THAN IN ANY WEEK SINCE APRIL 17 LABOR DEPARTMENT OFFICIALS SAID THEY EXPECT INITIALCLAIMS FIGURES TO BE UP FOR THE NEXT COUPLE OF WEEKS BECAUSE OF THE FLOODS BECAUSE THE LABOR DEPARTMENT'S MONTHLY EMPLOYMENT REPORT IS CONDUCTED DURING THE SAME WEEK IN JULY THE UNEMPLOYMENT RATE WILL ALSO MOST LIKELY BE TEMPORARILY IMPACTED BY WHAT'S OCCURRING IN THE MIDWEST SAID MARILYN SCHAJA AN ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP INITIAL CLAIMS AVERAGED 338000 OVER THE FOUR WEEKS ENDED JULY 17 UP FROM 337750 IN THE FOUR WEEKS ENDED JULY 10 SOME ANALYSTS SAY THIS MEASURE IS A MORE RELIABLE INDICATOR OF LABOR MARKET CONDITIONS THAN THE WEEKLY FIGURE 9307230133 930723 INTERNATIONAL GERMAN RETAIL SALES WIESBADEN GERMANY RETAIL SALES IN GERMANY'S FIVE EASTERN STATES ROSE 36 IN THE FIRST QUARTER FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID BY COMPARISON RETAIL SALES FELL 32 YEARONYEAR IN THE SAME QUARTER IN WESTERN GERMANY THE AGENCY SAID THE FIGURES AREN'T ADJUSTED FOR INFLATION 9307230132 930723 BUSINESS BRIEF CROWN ANDERSEN INC MISMANAGEMENT' IS CITED AS FIRM EXPECTS TO POST LOSS CROWN ANDERSEN INC PEACHTREE CITY GA SAID IT EXPECTS TO REPORT A LOSS FOR ITS FISCAL THIRD QUARTER ENDED JUNE 30 THE POLLUTIONCONTROL EQUIPMENT MAKER SAID THE LOSS STEMS FROM ITS DUTCH SUBSIDIARY MONTAIR ANDERSEN BV WHERE CROWN DISCOVERED FINANCIAL MISMANAGEMENT DURING AN AUDIT THE COMPANY SAID IT FIRED JAC VAN STRATUM 47 YEARS OLD AS MANAGING DIRECTOR OF THE UNIT AND REMOVED HIM FROM CROWN'S BOARD TON WAGEMANS 46 WHO HAD BEEN TECHNICAL DIRECTOR OF THE UNIT WAS APPOINTED MANAGING DIRECTOR MR VAN STRATUM'S BOARD SEAT HASN'T BEEN FILLED REACHED AT HIS HOME IN THE NETHERLANDS MR VAN STRATUM CALLED THE ALLEGATIONS ABSOLUTELY UNTRUE HE SAID THERE IS ABSOLUTELY NO FINANCIAL MISMANAGEMENT HE ATTRIBUTED THE UNIT'S LOSS TO POOR SALES WHICH HE SAID WERE CAUSED BY A SLOW ECONOMIC CLIMATE AND INSUFFICIENT MARKETING HE ALSO SAID HE SPENT MOST OF THE QUARTER IN SINGAPORE RUNNING THE COMPANY'S FAR EAST OPERATIONS AND LEAVING OTHERS TO RUN THE DUTCH OPERATIONS THE UNIT WILL REPORT A LOSS OF ABOUT 300000 FOR THE QUARTER THE COMPANY SAID THIS LOSS WILL EXCEED THE EARNINGS OF ITS OTHER SUBSIDIARIES 9307230131 930723 INTERNATIONAL ERICSSON WINS MOROCCO ORDER STOCKHOLM SWEDISH TELECOMMUNICATIONS COMPANY TELEFON AB LM ERICSSON SAID IT RECEIVED AN ORDER VALUED AT 165 MILLION KRONOR 207 MILLION FROM THE NATIONAL POST AND TELECOMMUNICATIONS ADMINISTRATION OF MOROCCO FOR EXPANSION OF MOROCCO'S TELECOMMUNICATIONS NETWORK THE ORDER INCLUDES DELIVERIES OF AUTOMATIC EXCHANGES TO THE CITIES OF CASABLANCA RABAT MARRAKECH AND AGADIR AS WELL AS INSTALLATION AND TRAINING SAID ERICSSON 9307230130 930723 MERRILL LAZARD EXCLUDED FROM MASSACHUSETTS SALE BOSTON MASSACHUSETTS WILL EXCLUDE MERRILL LYNCH & CO AND LAZARD FRERES & CO FROM A FORTHCOMING 500 MILLION BOND REFUNDING BECAUSE THE FIRMS DIDN'T DISCLOSE A CONTROVERSIAL CONTRACT BETWEEN THEM CONCERNING OTHER BOND DEALINGS IN THE STATE AS REPORTED THE TWO FIRMS HAD AN AGREEMENT THAT WASN'T DISCLOSED UNDER WHICH MERRILL PAID AT LEAST 28 MILLION TO LAZARD'S BOSTON OFFICE HEADED BY MARK S FERBER DURING A PERIOD WHEN LAZARD AND MR FERBER PROVIDED UNDERWRITING ADVICE TO THE MASSACHUSETTS WATER RESOURCES AUTHORITY MERRILL IS ONE OF THE WATER AGENCY'S LEAD UNDERWRITERS SUSAN COLLINS DEPUTY STATE TREASURER SAID THE FIRMS WILL BE EXCLUDED PENDING AN EXPLANATION OF WHY THEY DIDN'T DETAIL THAT RELATIONSHIP ON UNDERWRITERS' DISCLOSURE STATEMENTS THAT WERE REQUIRED BY TREASURER JOSEPH MALONE AFTER HE TOOK OFFICE IN 1991 FIRST ALBANY CORP ALSO WILL BE EXCLUDED SHE SAID BECAUSE MR FERBER AND HIS TEAM LEFT LAZARD TO JOIN THE FIRM EARLIER THIS YEAR SEPARATELY THE US ATTORNEY IN BOSTON HAS BEGUN A PRELIMINARY INQUIRY INTO THE WATER RESOURCES MATTER SAY PEOPLE FAMILIAR WITH THE CASE SPOKESMEN FOR MERRILL LAZARD AND FIRST ALBANY EACH SAID THEIR FIRMS WILL COOPERATE WITH THE TREASURER'S REQUEST FOR AN EXPLANATION OF ANY DISCREPANCIES MR FERBER COULDN'T BE REACHED FOR COMMENT 9307230129 930723 CYPRESS SEMICONDUCTOR CORP SAN JOSE CALIF CYPRESS SEMICONDUCTOR CORP CITING BRISK ORDERS FOR ITS CHIPS REPORTED SECONDQUARTER NET INCOME OF 36 MILLION OR 10 CENTS A SHARE COMPARED WITH A LOSS OF 17 MILLION OR FOUR CENTS A SHARE A YEAR EARLIER REVENUE GREW 14 TO 748 MILLION FROM 658 MILLION THE CHIP MAKER SAID THE SALE OF ITS SPARC MICROPROCESSOR SUBSIDIARY ROSS TECHNOLOGY HAS BEEN COMPLETED FOR 218 MILLION 9307230128 930723 CALIFORNIA AND NINE EAST COAST STATES SHOW SLOWEST PERSONAL INCOME GROWTH BY COLLEEN AE SLEVIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CALIFORNIA AND NINE EAST COAST STATES HAVE REPORTED THE SLOWEST GROWTH IN PERSONAL INCOME SINCE THE END OF THE RECESSION TWO YEARS AGO WHILE THE PLAINS AND ROCKY MOUNTAIN REGIONS HAVE POSTED THE LARGEST GAINS A COMMERCE DEPARTMENT REPORT SAID OVERALL AMERICANS INCOME HAS INCREASED AT A 46 ANNUAL RATE BETWEEN THE FIRST QUARTER OF 1991 AND THE FIRST QUARTER OF 1993 THAT IS FAR LESS THAN THE AVERAGE 98 ANNUAL RATE OF INCOME GROWTH CHARACTERISTIC OF PAST RECOVERIES THE REPORT SAID MOREOVER PERSONAL INCOME SLIPPED 16 DURING THIS YEAR'S FIRST QUARTER THE DECLINE LARGELY REFLECTED THE EARLY PAYMENT OF BONUSES DURING 1992 AS SOME EMPLOYERS CHOSE TO ISSUE BONUSES EARLY TO AVOID AN EXPECTED TAX INCREASE ALL BUT SEVEN STATES AND THE DISTRICT OF COLUMBIA REPORTED A DECLINE IN INCOME FROM LAST YEAR'S FOURTH QUARTER NORTH DAKOTA SUFFERED THE BIGGEST LOSS WITH EARNINGS FALLING 57 CONNECTICUT AND NEW YORK HAD DECLINES OF 43 AND 4 RESPECTIVELY AMONG THE WINNERS DURING THE FIRST QUARTER WERE IOWA WHERE PERSONAL INCOME GOT A 29 BOOST AND ALASKA WHERE EARNINGS WERE UP BY 13 FROM THE PREVIOUS QUARTER DURING THE LAST TWO YEARS CONNECTICUT HAD THE SLOWEST ANNUAL GROWTH RATE OF ALL THE STATES JUST 23 MAINE AND MASSACHUSETTS EACH GAINED AT A 29 RATE CALIFORNIA'S EARNINGS GREW AT A SLIGHTLY FASTER 31 PACE NORTH DAKOTA AND NEBRASKA POSTED THE FASTEST GAINS IN INCOME OVER THE TWO YEARS ANNUAL RATES OF 87 AND 84 RESPECTIVELY DECLINES IN THE NUMBER OF TRADITIONALLY HIGHPAYING JOBS LIKE CONSTRUCTION AND MANUFACTURING ACCOUNTED FOR MUCH OF THE SLOW PAYROLL GROWTH IN THE NEW ENGLAND AND MIDEAST STATES AND CALIFORNIA WE CONTINUE TO SEE A DICHOTOMY BETWEEN LOW AND HIGHCOST AREAS WITH A SHIFT OF JOBS AND THEN INCOME TO LOWWAGE AREAS SAYS PAUL GETMAN OF REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA SINCE THE END OF RECESSION PERSONAL INCOME GROWTH HAS CONTINUED TO OUTPACE PRICE RISES IN EVERY STATE EXCEPT CONNECTICUT MAINE MASSACHUSETTS AND CALIFORNIA THE REPORT SAID PRICES AS MEASURED BY THE FIXEDWEIGHTED PRICE INDEX FOR PERSONAL CONSUMPTION EXPENDITURES HAVE RISEN AT A 32 ANNUAL RATE SINCE THE FIRST PART OF 1991 NONE OF THE INCOME FIGURES IN THE REPORT IS ADJUSTED FOR INFLATION 9307230127 930723 SPILLED BEER DRAWS FINE FOR COLORADO BREWER COORS DENVER IT APPEARS THERE'S GOOD REASON TO CRY OVER SPILT BEER THE COLORADO DEPARTMENT OF HEALTH HAS FINED ADOLPH COORS CO 105 MILLION FOR AIRPOLLUTION VIOLATIONS CAUSED BY EVAPORATION OF ALCOHOL FROM BEER INCLUDING FROM THE BEER THAT IS SPILLED DURING BREWING AND PACKAGING THE GOLDEN COLO BREWER SAYS IT VIGOROUSLY WILL APPEAL THE FINE WHICH IS BASED ON NEARLY 200 VIOLATIONS OF AIRPOLLUTION STANDARDS ACCORDING TO THE STATE IT'S HARD TO COMPREHEND HOW EVAPORATING BEER CAN WARRANT SUCH A PENALTY SAID JOHN SCHALLENKAMP COORS'S ENVIRONMENTAL DIRECTOR COORS SAID IF IT MUST FILTER ITS EMISSIONS SO SHOULD OTHER BREWERIES WE'RE GOING TO MAKE SURE THAT THEY HAVE TO MEET THESE STANDARDS TOO MR SCHALLENKAMP SAID COLORADO HAS FILED A NOTICE OF VIOLATION WITH ANHEUSERBUSCH COS ABOUT SIMILAR POLLUTION ANHEUSERBUSCH SAID IT FOLLOWED THE STATE'S GUIDANCE IN BUILDING ITS FORT COLLINS COLO BREWERY AND BELIEVES ITS PROCESSES YIELD FEWER EMISSIONS THAN OTHER BEER MAKERS 9307230126 930723 PEOPLESOFT 2NDPERIOD NET ROSE WALNUT CREEK CALIF PEOPLESOFT INC SAID STRONG SALES OF ITS HRMS BUSINESS SOFTWARE PUSHED SECONDQUARTER NET INCOME UP 79 TO 19 MILLION OR 15 CENTS A SHARE FROM 11 MILLION OR 11 CENTS A SHARE A YEAR EARLIER THE BUSINESS SOFTWARE MAKER SAID REVENUE JUMPED 83 TO 133 MILLION FROM 73 MILLION A YEAR EARLIER 9307230125 930723 ZENITH LABS PROFIT JUMPED TO 6 MILLION IN THE SECOND QUARTER NORTHVALE NJ ZENITH LABORATORIES INC POSTED A HUGE INCREASE IN SECOND QUARTER EARNINGS BOLSTERED BY STRONG SALES OF AN ANTIINFECTION DRUG RELEASED IN FEBRUARY ITS STOCK ROSE 5 NET INCOME ROSE TO 6 MILLION OR 83 CENTS A SHARE FROM 175000 OR ONE CENT A SHARE A YEAR EARLIER SALES ROSE ABOUT 60 TO 247 MILLION FROM 155 MILLION OUR ENTIRE PRODUCT LINE IS UP FROM A YEAR AGO SAID RICHARD FRIEDMAN VICE PRESIDENT FINANCE IN OVERTHECOUNTER TRADING ZENITH SHARES ROSE 2625 TO CLOSE AT 5550 ZENITH'S EARNINGS ARE GOING BALLISTIC SAYS DAVID SAKS AN ANALYST AT GRUNTAL INVESTMENT RESEARCH IN NEW YORK WHO HAS BEEN BULLISH ON GENERICS AS A WHOLE BUT ESPECIALLY ZENITH THE GENERIC INDUSTRY IS POLITICALLY AND ECONOMICALLY HOT AND FAVORED HE SAID DUE TO GROWING CONCERN ABOUT HIGH HEALTH CARE COSTS WHILE COMPETITION IN THE INDUSTRY HAS ALWAYS BEEN INTENSE AT THE SAME TIME THE MARKET'S GETTING BIGGER MR SAKS SAID SIXMONTH RESULTS REFLECTED A TURNAROUND NET WAS 102 MILLION OR 141 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 25 MILLION OR 62 CENTS A SHARE SALES ROSE TO 464 MILLION FROM 27 MILLION PART OF THE GAIN IS DUE TO THE COMPLETION OF BACKORDERS WHICH PILED UP WHILE ZENITH WENT THROUGH A REVALIDATION PROCESS BY THE FOOD AND DRUG ADMINISTRATION IN THE FIRST QUARTER OF LAST YEAR MR FRIEDMAN SAID THE COMPANY ALSO SAID IT HAS CONTINUED ITS COMMITMENT TO PRODUCT DEVELOPMENT BY INCREASING SPENDING ON RESEARCH AND DEVELOPMENT BY 22 FOR THE SIXMONTH PERIOD 9307230124 930723 INDUSTRY FOCUS EMPLOYEE OWNERSHIP IS CATCHING ON IN AIRLINE INDUSTRY STOCKFORCONCESSIONS TACTIC IF APPROVAL IS WON STILL FACES BIG OBSTACLES BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL THOUSANDS OF AIRLINE EMPLOYEES ARE POISED TO BECOME AIRLINE OWNERS BUT THESE NEW PARTNERSHIPS WITH MANAGEMENT FACE BIG OBSTACLES AT AIRLINE AFTER AIRLINE MANAGEMENT IS EMBRACING THE IDEA OF GIVING WORKERS BIG CHUNKS OF STOCK AND EVEN BOARD SEATS IN RETURN FOR EQUALLY BIG CONCESSIONS ON WAGES BENEFITS AND WORK RULES AMR CORP'S AMERICAN AIRLINES WAS THE LATEST TO JUMP ON THE BANDWAGON FLOATING THE IDEA OF EMPLOYEE OWNERSHIP JUST THIS WEEK THE NEWS COMES AS UAL CORP'S MANAGEMENT CONSIDERS A PLAN BY UNIONS FOR UNITED AIRLINES EMPLOYEES TO GRANT MORE THAN 3 BILLION IN CONCESSIONS FOR 60 OF THE COMPANY ALREADY WELL UNDER WAY ARE DEALS THAT WOULD GIVE TRANS WORLD AIRLINES WORKERS 45 OF THAT COMPANY AND NORTHWEST AIRLINES EMPLOYEES AS MUCH AS 375 OF THE AIRLINE UNDER AGREEMENTS MADE IN RETURN FOR HUNDREDS OF MILLIONS OF DOLLARS IN CONCESSIONS AMERICAN HASN'T SPELLED OUT ITS IDEAS BUT AT A LUNCH IN NEW YORK CHIEF FINANCIAL OFFICER MICHAEL J DURHAM TOLD WALL STREET ANALYSTS THAT EMPLOYEE OWNERSHIP COULD LEAD TO AN OVERHAUL OF THE INDUSTRY IF THESE THINGS BECOME A REALITY THEY WOULD FUNDAMENTALLY CHANGE HOW AN AIRLINE IS MANAGED HE TOLD THE GROUP MORE IMPORTANT THAN THE ACTUAL EQUITY AND OWNERSHIP AMOUNTS BEING DISCUSSED AT VARIOUS CARRIERS IS THE PSYCHOLOGICAL BONDING AS AN EMPLOYEE MAKES AN INVESTMENT IN THE COMPANY INSTEAD OF BEING FORCED INTO MAKING A PAY CONCESSION ANYTHING YOU CAN DO TO ALIGN THE INTERESTS OF EMPLOYEES WITH THE INTERESTS OF SHAREHOLDERS IS VERY POSITIVE SAID MICHAEL LEVINE EXECUTIVE VICE PRESIDENT OF THE NORTHWEST AIRLINES UNIT OF WINGS HOLDINGS INC IN A RECENT INTERVIEW EMPLOYEE OWNERSHIP HAS A MIXED TRACK RECORD IN THE AIRLINE BUSINESS AT NOWDEFUNCT EASTERN AIRLINES AN ERA OF GOOD FEELINGS THAT BLOSSOMED IN 1984 QUICKLY FELL APART A LABOR DEPARTMENT STUDY FOUND THE EFFORT LACKED REAL SUPPORT FROM SOME TOP UNION AND COMPANY LEADERS AND BY MANY IN THE RANKANDFILE MOST PEOPLE KNEW LITTLE ABOUT THE STOCK THAT THEY OWNED THE STUDY SAID EVEN THOSE WHO DID THOUGHT THEY WERE BEING CHEATED A DIFFERENCE TODAY IS THAT MANAGEMENT AND LABOR AT EVEN HEALTHIER CARRIERS ARE CONSIDERING THE IDEA AS THEY GROPE FOR WAYS TO WARD OFF LOWERCOST COMPETITORS THEY HOPE TO GET GREATER SUPPORT AMONG WORKERS BY BILLING THE MOVES AS INVESTMENTS RATHER THAN GIVEBACKS THIS PARTNERSHIP IS SORT OF THE LAST THING THEY CAN TRY SAYS JOSEPH BLASI A RUTGERS UNIVERSITY PROFESSOR WHO HAS STUDIED EMPLOYEE INVOLVEMENT AT EASTERN THESE PARTNERSHIPS ARE FURTHEST ALONG AT NORTHWEST WHERE TEAMSTERS AND MACHINISTS UNION MEMBERS ARE VOTING ON REVISED ACCORDS AND AT TWA WHICH HOPES TO EMERGE FROM BANKRUPTCYLAW PROTECTION NEXT MONTH IF THE DEALS ARE APPROVED THE AIRLINE INDUSTRY COULD OFFER A HIGHPROFILE TEST OF THE CLINTON ADMINISTRATION'S CALL FOR LABORMANAGEMENT COOPERATION BUT MR BLASI BELIEVES MISTAKES ALREADY HAVE BEEN MADE IN NEGOTIATING EMPLOYEE OWNERSHIP AT NORTHWEST AND TWA HE SAYS FOR EXAMPLE BOTH AIRLINES SHOULD HAVE SET UP PROBLEMSOLVING TEAMS AND OTHER MECHANISMS TO HELP LABOR AND MANAGEMENT BOOST PRODUCTIVITY BILL COMPTON HEAD OF TWA'S PILOTS' UNION PLEADS GUILTY SORT OF SHOULD WE HAVE HANDLED IT YES DID WE HAVE THE TIME TO HANDLE IT PROBABLY NOT SOME TWA EMPLOYEES ARE MAKING UP FOR LOST TIME FLIGHT ATTENDANTS DON THEIR UNIFORMS ON DAYS OFF TO PREACH THE BENEFITS OF THE NEW TWA TO TRAVEL AGENCIES PILOTS DONATE MONEY FOR BILLBOARD AND RADIO ADS BOTH PAY MORE ATTENTION TO CUSTOMERS RESULTING IN A DROP IN THE AIRLINE'S SKYHIGH TALLY OF PASSENGER COMPLAINTS WE ALL TOOK A 15 HIT ON WAGES AND BENEFITS AND WE'RE HAPPIER COMING TO WORK SAYS MR COMPTON WHO WILL BE ONE OF FOUR LABOR REPRESENTATIVES ON TWA'S BOARD CONCESSIONSFORSTOCK AT TWA AND NORTHWEST FOLLOWS A PATTERN SET IN THE 1980S WHEN SUCH CARRIERS AS EASTERN AND REPUBLIC AIRLINES NEGOTIATED SIMILAR DEALS ALTHOUGH EASTERN LATER SHUT DOWN REPUBLIC'S WORKERS SOLD THEIR STOCK TO NORTHWEST WHEN THE CARRIER BOUGHT REPUBLIC IN 1986 TALK OF SIMILAR MOVES AT THE HEALTHIER CARRIERS TAKES THE IDEA TO ANOTHER LEVEL IN FLOATING THE IDEA OF MAJORITY OWNERSHIP IN RETURN FOR CONCESSIONS OVER FIVE YEARS UNITED'S UNIONS REALIZE THAT IT MIGHT BE BETTER TO HELP THE AIRLINE BEFORE IT GETS INTO DEEPER TROUBLE BUT IF EMPLOYEE OWNERSHIP IS TO WORK IT ONLY STARTS WITH COSTCUTTING CARRIERS HAVE TO FIND WAYS TO MAKE WORKERS CARE ABOUT THEIR JOBS AND CUSTOMERS MAKING OWNERSHIP A COMPETITIVE EDGE MR LEVINE THE NORTHWEST MARKETING EXECUTIVE AND FORMER HEAD OF YALE UNIVERSITY'S GRADUATE SCHOOL OF ORGANIZATION AND MANAGEMENT SAYS THAT MAKES SENSE IN A FARFLUNG SERVICE BUSINESS WHERE SUPERVISION CAN BE MINIMAL YOU WANT EMPLOYEES TO THINK ABOUT THE REVENUE AND EXPENSE SIDE AND NOT JUST THEIR PAYCHECK HE SAYS THAT IS HARD TO DO ESPECIALLY WITH PAYCHECKS 8 TO 15 THINNER AS THEY WILL BE AT NORTHWEST IF THE RANKANDFILE APPROVE MACHINISTS OVERWHELMINGLY REJECTED THE IDEA IN JUNE BUT THEY VOTE ON A REVISED AGREEMENT MONDAY AND THE COMPANY IS THREATENING AN IMMEDIATE BANKRUPTCYLAW FILING IF THEY SAY NO AGAIN EVEN AS IT MAKES SUCH THREATS NORTHWEST IS PREPARING FOR CLOSER COOPERATION WITH WORKERS IN ADDITION TO STOCK AND THREE OF 15 BOARD SEATS THE AGREEMENT CALLS FOR A LABOR ADVISORY COMMITTEE THAT WOULD HAVE ACCESS TO FINANCIAL INFORMATION AND TOP MANAGEMENT MR BLASI THE RUTGERS PROFESSOR SAYS THAT AFTER WORKERS EXCHANGED CONCESSIONS FOR STOCK AT EASTERN THE AIRLINE HAD SOME SUCCESS WITH COOPERATIVE EFFORTS TO BOOST PRODUCTIVITY MR BLASI AND OTHER RESEARCHERS WHO WORKED ON THE LABOR DEPARTMENT STUDY FOUND THAT FOR A BRIEF TIME THERE WAS UNPARALLELED COOPERATION BETWEEN LABOR AND MANAGEMENT AMONG DEPARTMENTS AND AMONG WORK GROUPS THE HARD PART IS MAKING IT LAST EMPLOYEEINVOLVEMENT EXPERTS ALREADY HAVE WARNED LEADERS OF TWA'S EFFORT NOT TO PROMISE WORKERS MORE THAN THEY CAN DELIVER AND THAT A SUCCESSFUL PROGRAM TAKES A LONG TIME TO SET UP ALTHOUGH LABORMANAGEMENT COOPERATION HAS BEEN EMBRACED BY TOP TWA EXECUTIVES SOME MANAGERS DON'T LIKE THE IDEA OF INVOLVING EMPLOYEES IN DECISIONMAKING SOME ARE RESISTING BECAUSE THEY DON'T WANT TO BE PART OF IT SAYS NELSON KRUEGER COCHAIRMAN OF THE PILOT UNION'S EMPLOYEE COMMITTEE THEY WILL EVENTUALLY BE OUT OF THE COMPANY HE SAYS MR COMPTON THE LEADER OF THE TWA PILOTS' UNION SAYS HE ALREADY HAS THOUGHT ABOUT HIS ROLE AS A MEMBER OF THE BOARD AFTER THE CARRIER EMERGES FROM BANKRUPTCYLAW PROTECTION HE SAYS HE WANTS TO FOCUS ON WAYS TO INCREASE PRODUCTIVITY BOTH OF THE COMPANY'S ASSETS AND OF ITS WORKERS I'M GOING TO PUT THE COMPANY'S BEST INTERESTS FIRST HE VOWS IF WE HAVE A SUCCESSFUL PROFITABLE ENTERPRISE WHAT COMES WITH IT IS DECENT WORK BENEFITS AND JOB SECURITY AND THE PRIMARY ISSUE FOR TWA EMPLOYEES NOW IS JOB SECURITY BRIDGET O'BRIAN CONTRIBUTED TO THIS ARTICLE 9307230123 930723 BUSINESS BRIEF RYDER SYSTEM INC LOSS OF 1222 MILLION POSTED AFTER SECONDPERIOD CHARGE RYDER SYSTEM INC MIAMI REPORTED A SECONDQUARTER LOSS OF 1222 MILLION OR 160 A SHARE AS THE COMPANY TOOK A ONETIME CHARGE TO RESTRUCTURE ITS AVIATION BUSINESSES FOR SPINOFF EXCLUDING THE 1694 MILLION CHARGE AS WELL AS 65 MILLION IN OPERATING PROFIT FROM ITS AVIATION SEGMENT WHICH RYDER IS TREATING AS A DISCONTINUED OPERATION THE COMPANY REPORTED EARNINGS FROM CONTINUING OPERATIONS OF 407 MILLION OR 51 CENTS A SHARE COMPARED WITH EARNINGS OF 347 MILLION OR 43 CENTS A SHARE A YEAR EARLIER REVENUE FROM CONTINUING OPERATIONS ROSE 4 TO 108 BILLION PRETAX PROFIT IN THE TRANSPORTATION CONCERN'S CORE VEHICLE LEASING AND SERVICES SEGMENT JUMPED 43 FROM THE YEAREARLIER TO 655 MILLION PROFIT IN THE AUTOCARRIER BUSINESS FELL 51 TO 121 MILLION OFFICIALS SAID THEY HOPE TO REDUCE RYDER'S 19 BILLION DEBT BY 400 MILLION FROM SPINNING OFF AVIATION WHICH ACCOUNTED FOR 23 OF THE COMPANY'S 1992 52 BILLION REVENUE IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE RYDER CLOSED AT 3075 A SHARE DOWN 125 9307230122 930723 HONG KONG'S REGISTERED FIRMS HONG KONG LED BY A SHARP RISE IN THE NUMBER OF NEW BUSINESSES ESTABLISHED IN THE FIRST SIX MONTHS OF THIS YEAR THE HONG KONG GOVERNMENT REPORTED AN 88 JUMP IN THE NUMBER OF COMPANIES REGISTERED FOR BUSINESS IN THE COLONY EXISTING COMPANIES HOWEVER REDUCED THEIR NOMINAL CAPITAL BY 1939 BILLION HONG KONG DOLLARS US250 BILLION OR 11 YEARONYEAR COMPANIES REGISTRY DATA SHOW BUT THE NOMINAL CAPITAL OF NEW COMPANIES INCORPORATED BETWEEN JANUARY AND JUNE SURGED 86 TO HK370 BILLION THE COMPANIES REGISTRY SAID THE TOTAL NUMBER OF COMPANIES REGISTERED FOR BUSINESS ROSE TO 389688 AT THE END OF JUNE COMPARED WITH 358129 AT THE END OF 1992 9307230121 930723 BUSINESS BRIEF RJR NABISCO HOLDINGS INC HALF OF A FOOD FIRM IN SPAIN IS ACQUIRED FOR 130 MILLION RJR NABISCO HOLDINGS INC REENTERING THE EUROPEAN FOOD BUSINESS SAID IN NEW YORK THAT ITS NABISCO INTERNATIONAL FOOD UNIT ACQUIRED A 50 INTEREST IN ROYAL BRANDS A SPANISH FOOD COMPANY FOR 130 MILLION NABISCO HAS THE OPTION TO ACQUIRE THE REST OF THE COMPANY AFTER ONE YEAR THE DEAL IS STRUCTURED AS A JOINT VENTURE WITH SPAIN'S STATEOWNED TABACALERA SA WHICH CURRENTLY OWNS 100 OF ROYAL BRANDS ROYAL BRANDS HAS LEADING POSITIONS IN BISCUITS JUICE AND PUDDINGS IN SPAIN WITH ANNUAL SALES OF 227 MILLION THE COMPANY IS ALSO ACTIVE IN PORTUGAL RJR SOLD ITS EUROPEAN FOOD BUSINESSES INCLUDING ROYAL BRANDS TO PAY DOWN DEBT AFTER THE 1989 LEVERAGED BUYOUT TABACALERA HAS SAID IT WOULD REPORT A SIZABLE GAIN IF IT SOLD 100 OF ROYAL BRANDS BUT NABISCO EXECUTIVES NOTE THAT THE JOINT VENTURE WITH TABACALERA INCLUDES A LARGE JUICE AND CANNEDGOODS COMPANY THAT WASN'T PART OF THE ORIGINAL DEAL 9307230120 930723 BUSINESS BRIEF PITNEY BOWES INC SECONDQUARTER PROFIT ROSE 18 AS REVENUE INCREASED 5 PITNEY BOWES INC STAMFORD CONN REPORTED AN 18 JUMP IN SECONDQUARTER PROFIT ON STRONGER REVENUE IN THE US ALTHOUGH WEAKER EUROPEAN MARKETS AND CURRENCY FLUCTUATIONS HAMPERED RESULTS THE MAKER OF BUSINESS EQUIPMENT AND SUPPLIES AND PROVIDER OF FINANCIAL SERVICES SAID NET INCOME WAS 873 MILLION OR 55 CENTS A SHARE UP FROM 738 MILLION OR 46 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 5 TO 8744 MILLION FROM 8339 MILLION THE BUSINESS EQUIPMENT SEGMENT WHICH COMPRISES ALMOST 70 OF PITNEY'S BUSINESS POSTED A 4 INCREASE IN REVENUE AND A 19 RISE IN OPERATING PROFIT MAINLY DUE TO A STRONG SHOWING BY THE US MAILING SYSTEMS BUSINESS AND DESPITE WEAKNESS IN EUROPEAN MARKETS PITNEY'S FACSIMILE BUSINESS IN THE US AND DICTAPHONE BUSINESS POSTED STRONGER OPERATING PROFITS 9307230119 930723 BELGIAN ECONOMIC INDEX GAINS BRUSSELS BELGIUM'S INDEX OF LEADING ECONOMIC INDICATORS IN JUNE IMPROVED TO A NEGATIVE 213 POINTS FROM A NEGATIVE 289 POINTS IN MAY REFLECTING AN UPTURN IN INDUSTRIAL MANUFACTURING AND TRADE THE BANQUE NATIONALE DE BELGIQUE SAID THE INDEX FORECASTS BELGIAN ECONOMIC PROSPECTS BY MEASURING DEMAND PRICES AND EMPLOYMENT IN SEVERAL SECTORS THE BELGIAN NATIONAL BANK SAID ALTHOUGH THIS IS ALMOST THE ONLY IMPROVEMENT IN THE INDEX SINCE THE START OF THE ECONOMIC DOWNTURN AT THE BEGINNING OF 1992 IT ISN'T POSSIBLE TO SAY YET THAT THERE HAS BEEN A TURNAROUND 9307230118 930723 FED CHIEF SEES INCREASE IN RATES AT SOME POINT' GREENSPAN NOTES NO THREAT FROM INFLATION BUT SAYS RATE BOOST IS INEVITABLE BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THAT ALTHOUGH HE DOESN'T SEE ANY MAJOR THREAT OF INFLATION NOW THE CENTRAL BANK WILL UNDOUBTEDLY BE FORCED TO RAISE INTEREST RATES SOMETIME DOWN THE ROAD THE SIGNAL WE ARE ENDEAVORING TO SEND HERE IS THAT AT SOME POINT RATES ARE GOING TO HAVE TO MOVE UP MR GREENSPAN TOLD THE SENATE BANKING COMMITTEE THE FED CHAIRMAN'S UNCHARACTERISTICALLY UNEQUIVOCAL COMMENTS WERE AN ATTEMPT TO CLARIFY TESTIMONY HE GAVE TO A HOUSE PANEL EARLIER IN THE WEEK WHICH ROILED THE FINANCIAL MARKETS STOCK AND BOND PRICES WEAKENED AGAIN YESTERDAY IN PART DUE TO MR GREENSPAN'S COMMENTS MR GREENSPAN STRESSED THAT WE DON'T KNOW WHERE OR WHEN SUCH CHANGES IN INTEREST RATES WOULD TAKE PLACE BUT HE SAID IT WAS INEVITABLE THAT RATES WOULD NEED TO BE RAISED AS CONSUMERS AND BUSINESSES PAY OFF THE DEBT THEY ACCUMULATED IN THE 1980S AND THE ECONOMY BEGINS TO EXPAND MORE RAPIDLY BRISKER ECONOMIC GROWTH DOESN'T NECESSARILY ENGENDER INFLATIONARY PRESSURES MR GREENSPAN SAID BUT WE HAVE TO BE VIGILANT TO MAKE CERTAIN THAT PRICES REMAIN UNDER CONTROL SUCH COMMENTS DREW HEAVY FIRE FROM SEVERAL DEMOCRATIC SENATORS WHO SAID THE FED WAS SENDING OUT THE WRONG SIGNAL WHILE THE JOB MARKET REMAINS SOFT AND FACTORIES ARE OPERATING FAR BELOW FULL CAPACITY EARLIER IN THE WEEK IT WAS MR GREENSPAN WHO PUT THE SCREWS TO CONGRESS URGING THE LAWMAKERS TO PASS A CREDIBLE DEFICITREDUCTION PLAN BUT YESTERDAY IT WAS CONGRESS THAT PRESSURED MR GREENSPAN IMPLORING HIM NOT TO RAISE INTEREST RATES PREMATURELY MICHIGAN DEMOCRAT DONALD RIEGLE THE BANKING COMMITTEE CHAIRMAN SAID POINTEDLY IT LOOKS TO ME LIKE THE FED PAYS ABOUT 999 OF ITS TIME TO INFLATION AND THE REST OF THE TIME TO EMPLOYMENT AND GROWTH AND THE OTHER THINGS SEVERAL LAWMAKERS ATTACKED THE FED'S DECISION MADE IN MAY TO ALTER ITS STANCE AND TILT TOWARD HIGHER INTEREST RATES I FRANKLY THINK YOU SHOULD TILT IN THE OTHER DIRECTION SAID SEN PAUL SARBANES D MD WHO POINTED TO A DISCONNECT BETWEEN FED POLICY MAKERS AND WHAT'S HAPPENING TO ORDINARY AMERICANS OUT ON THE STREET OTHER DEMOCRATS NOTED THAT THE DEFICITREDUCTION BILL NOW WORKING ITS WAY THROUGH CONGRESS COULD CAUSE THE ECONOMY TO CONTRACT THE FED MUST PICK UP THE SLACK SAID SEN JIM SASSER D TENN MR GREENSPAN ACKNOWLEDGED THAT SINCE A RUNUP IN PRICES EARLIER IN THE YEAR THERE HAS BEEN A CLEAR SIMMERING DOWN OF INFLATION OUR CONCERN IS NOT THE EXISTING STATE HE SAID BUT RATHER TO MAKE CERTAIN THAT WE DO NOT ALLOW ELEMENTS OF INFLATION TO EMERGE TO A POINT THAT THEY WILL CREATE IMBALANCES IN THE ECONOMY OUR MAJOR CONCERN IS THAT WE DO NOT INADVERTENTLY FALL INTO THE EXPERIENCE OF THE LATE 1970S AND EARLY 1980S WHERE WE WERE WAY BEHIND THE CURVE MR GREENSPAN EXPLAINED AT THAT TIME HE SAID WE DID NOT ANTICIPATE THE DEGREE OF INFLATIONARY EXPANSION THAT WAS GOING ON AND THE TRAGIC RESULTS OF THAT I THINK ARE MUCH TOO EXTRAORDINARY FOR US TO EVEN CONCEIVE OF FACING THEM AGAIN THE FED HAS HELD SHORTTERM INTEREST RATES STEADY SINCE SEPTEMBER MUCH OF YESTERDAY'S HEARING WAS CONSUMED BY PARTISAN SNIPING MOST OF IT OVER PRESIDENT CLINTON'S BUDGET PACKAGE DEMOCRATS AND REPUBLICANS CHIDED EACH OTHER FOR MORE THAN AN HOUR BEFORE MR GREENSPAN WAS EVEN CALLED UPON TO GIVE HIS OPENING REMARKS AT ONE POINT DEMOCRAT JOHN KERRY OF MASSACHUSETTS LIT INTO REPUBLICAN PHIL GRAMM OF TEXAS FOR DEFENDING A FEDERAL SUBSIDY FOR PRODUCING MOHAIR DOES THE AVERAGE AMERICAN WONDER WHY WE LOOK LIKE FOOLS UP HERE SEN KERRY ASKED 9307230117 930723 BUDGET SURPLUS IN JUNE TRIPLED FROM YEAR AGO WASHINGTON THE FEDERAL GOVERNMENT'S BUDGET SURPLUS IN JUNE TRIPLED FROM A YEAR EARLIER TO 111 BILLION AND THE DEFICIT SO FAR THIS FISCAL YEAR IS RUNNING WELL BELOW THE PRIOR YEAR'S LEVELS THE TREASURY SAID IN THE FIRST NINE MONTHS OF THE FEDERAL FISCAL YEAR THE GOVERNMENT DEFICIT AMOUNTED TO 2006 BILLION COMPARED WITH 22775 BILLION FOR THE SAME MONTHS THE PREVIOUS YEAR THE TREASURY SAID THE WHITE HOUSE BUDGET OFFICE SAID RECENTLY THAT IT EXPECTS THE DEFICIT FOR FISCAL 1993 WHICH ENDS SEPT 30 TO TOTAL ABOUT 285 BILLION ABOUT 5 BILLION SMALLER THAN THE FISCAL 1992 DEFICIT THE LATEST GOVERNMENT ACCOUNTING SHOWS THAT FEDERAL TAX COLLECTIONS PARTICULARLY CORPORATE TAX RECEIPTS ARE SLIGHTLY STRONGER THAN GOVERNMENT ANALYSTS EXPECTED AND THAT FEDERAL HEALTH SPENDING IS COMING IN BELOW PROJECTIONS CORPORATE TAX RECEIPTS WHICH ACCOUNT FOR A SMALL FRACTION OF ALL FEDERAL REVENUES ARE RUNNING 163 AHEAD OF LAST YEAR THE CONGRESSIONAL BUDGET OFFICE PROJECTED EARLIER THEY WOULD CLIMB ABOUT 10 THIS YEAR INDIVIDUAL INCOME TAX RECEIPTS ARE ALSO SLIGHTLY ABOVE PROJECTIONS CLIMBING 72 IN THE FIRST NINE MONTHS SPENDING ON THE MEDICARE HEALTH INSURANCE PROGRAM FOR THE ELDERLY IS UP 98 SO FAR THIS YEAR A SUBSTANTIAL RISE BUT SHY OF THE 115 INCREASE THE WHITE HOUSE BUDGET OFFICE FORECAST SPENDING ON MEDICAID ALSO IS GROWING AT A SLOWERTHANEXPECTED RATE 9307230116 930723 JAPANESE TRADE SURPLUS TOKYO JAPAN FOR THE FIRST 10 DAYS OF JULY POSTED A TRADE SURPLUS ON THE BASIS OF GOODS PASSING CUSTOMS BUT BEFORE ADJUSTMENT FOR SEASONAL FACTORS OF 368 BILLION UP 48 FROM THE 248 BILLION SURPLUS FOR THE YEAREARLIER PERIOD THE FINANCE MINISTRY REPORTED EXPORTS ROSE 79 TO 1019 BILLION FROM 944 BILLION A YEAR EARLIER IMPORTS DROPPED 66 TO 650 BILLION FROM 696 BILLION 9307230115 930723 INDOJAPANESE MAKERS OF LIGHT TRUCKS SAY MORE DUTY REDUCTIONS ARE NEEDED BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDOJAPANESE MAKERS OF LIGHT TRUCKS COMPLAIN THAT THEY STILL ARE SPINNING THEIR WHEELS DESPITE THE INDIAN GOVERNMENT'S ATTEMPTS TO CUT RED TAPE AND ENCOURAGE INVESTMENT THE FOUR JOINT VENTURES ALL OF WHICH ARE UNPROFITABLE HALTED OR SLOWED PRODUCTION OF TRUCKS AND VANS SIX WEEKS AGO IN RESPONSE TO AN ABRUPT IMPOSITION OF A NEW DUTY ON PARTS THEY SAID THE ADDED COST PRICED THEIR VEHICLES OUT OF THE MARKET THIS WEEK THE GOVERNMENT OFFSET THE DUTY BY REDUCING A SEPARATE IMPORT DUTY ALLOWING THE VENTURES TO RESUME NORMAL PRODUCTION BUT INDUSTRY EXECUTIVES SAY THE DISRUPTION RESULTED IN LOST SALES OF AT LEAST SEVERAL HUNDRED TRUCKS AND VANS WHICH SELL FOR ABOUT 360000 RUPEES CLOSE TO 11600 APIECE THE FOUR COMPANIES LAUNCHED IN THE 1980S ARE EICHER MOTORS LTD WHOSE JAPANESE PARTNER IS MITSUBISHI MOTORS CORP DCM TOYOTA LTD MAHINDRA ALLWYN NISSAN LTD AND SWARAJ MAZDA LTD THE JAPANESE PARENTS HOLD STAKES IN THE JOINT VENTURES RANGING FROM 15 TO 26 OTHER THAN SUZUKI MOTOR CO WHICH HAS A PROFITABLE CARMAKING JOINT VENTURE MARUTI UDYOG LTD WITH THE INDIAN GOVERNMENT JAPANESE AUTO MAKERS HAVE LONG HAD A ROUGH RIDE IN INDIA THE MARKET IS OPEN BUT WITH THE PREVAILING DUTIES AND TARIFF STRUCTURE SO FAR WE DON'T FIND IT FEASIBLE TO INCREASE VOLUMES SAYS TOYOTA MOTOR CORP THE DISRUPTION IN OUTPUT FOLLOWED THE JUNE 11 IMPOSITION OF SOCALLED COUNTERVAILING IMPORT DUTIES ON SEVERAL ITEMS INCLUDING AUTO PARTS THIS DUTY SEPARATE FROM NORMAL IMPORT DUTIES IS EQUIVALENT TO THE EXCISE DUTY THAT DOMESTIC PART MAKERS ARE CHARGED IT IS DESIGNED TO PREVENT IMPORTED COMPONENTS FROM GAINING A PRICE ADVANTAGE OVER DOMESTIC ONES IN THEORY IMPORTERS OF COMPONENTS CAN SET THIS COUNTERVAILING DUTY OFF AGAINST EXCISE DUTIES PAID ON FINISHED VEHICLES BUT INDUSTRY EXECUTIVES SAY THEY ALREADY SET OFF THE ENTIRE EXCISE DUTY ON FINISHED VEHICLES WITH OTHER TAXES ON DOMESTIC COMPONENTS THUS THEY HAD NO TAX LIABILITY LEFT TO USE TO SET OFF THE NEW LEVY IT WAS A BLUNDER SAYS AN EXECUTIVE AT ONE OF THE TRUCK MAKERS IT SEEMS THAT MINISTRY OFFICIALS HADN'T DONE THEIR HOMEWORK WHILE THE FINANCE MINISTRY MADE NO COMMENT IT TACITLY ADMITTED THAT THE JUNE DECISION WAS AN ERROR WHEN IT ALMOST HALVED REGULAR DUTIES ON IMPORTED PARTS THIS WEEK THUS EASING THE BURDEN ON THE JOINT VENTURES WE'RE BACK TO SQUARE ONE SAYS THE EXECUTIVE STILL DEEPLY UNSATISFIED THE JAPANESE JOINT VENTURES ARE CALLING FOR FURTHER DUTY REDUCTIONS INDIA'S COMMERCIAL VEHICLE INDUSTRY AS A WHOLE HAS BEEN IN A SLUMP SINCE 1990 AND THE JAPANESE JOINT VENTURES HAVE THE ADDED BURDEN OF HIGH COSTS CAUSED BY THE STRENGTHENING YEN AS WELL AS HIGH IMPORT DUTIES ON PARTS THE JOINT VENTURES WHICH HAVE A TOTAL CAPACITY OF 31000 VEHICLES A YEAR HAVE WATCHED THEIR ANNUAL DOMESTIC SALES PLUNGE TO JUST 8974 VEHICLES OR 17 OF THE COUNTRY'S TOTAL SALES OF LIGHT COMMERCIAL VEHICLES IN THE YEAR ENDED MARCH 31 FROM A PEAK OF 15803 OR A 28 MARKET SHARE TWO YEARS EARLIER FOR THE LATEST FISCAL YEAR ALL FOUR COMPANIES REPORTED LOSSES RANGING FROM 516 MILLION RUPEES AT SWARAJ MAZDA TO 1392 MILLION RUPEES AT DCM TOYOTA TOYOTA HAS BEEN THINKING OF A PRODUCTION BASE IN INDIA AND HAD PLANNED SUBSTANTIAL EXPORTS SAYS A DCM TOYOTA OFFICIAL BUT IF YOU DON'T CREATE AN ENVIRONMENT IN WHICH THEY CAN BE HEALTHY WHY SHOULD THE JAPANESE LOOK AT OUR MARKET YUTAKA KUME CHAIRMAN OF THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION IN MAY WROTE TO INDIA'S FINANCE MINISTER COMPLAINING THAT THE INDOJAPANESE JOINT VENTURES WERE SUFFERING LOSSES FOR REASONS BEYOND THEIR CONTROL AND THAT JAPANESE MANUFACTURERS HAD BEEN FORCED TO GIVE THEM TREMENDOUS SUPPORT WITHOUT REGARD FOR PROFIT MR KUME ASKED THAT IMPORT DUTIES BE REDUCED ADDING IF THE CURRENT DIFFICULTIES CONTINUE WE ARE AFRAID THAT SOME COMPANIES MAY BE FORCED TO RETREAT FROM OPERATIONS 9307230114 930723 SWEDEN'S MAY CURRENT ACCOUNT STOCKHOLM THE BALANCE IN SWEDEN'S CURRENT ACCOUNT SWUNG TO A SURPLUS OF 12 BILLION KRONA 1504 MILLION IN MAY FROM A DEFICIT OF 53 BILLION KRONOR IN THE SAME MONTH IN 1992 ACCORDING TO FIGURES RELEASED BY SVERIGES RIKSBANK THE CENTRAL BANK OF SWEDEN IN THE 12 MONTH PERIOD ENDED IN MAY THE DEFICIT IN SWEDEN'S CURRENT ACCOUNT OF ITS INTERNATIONAL TRADE BALANCE OF PAYMENTS NARROWED TO 193 BILLION KRONOR FROM 269 BILLION KRONOR IN THE CORRESPONDING PERIOD A YEAR EARLIER 9307230113 930723 BILL ON GOVERNMENT SECURITIES CLEARS PANEL IN HOUSE BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE SUBCOMMITTEE APPROVED A BROAD GOVERNMENTSECURITIES REGULATION BILL THAT FALLS SHORT OF WHAT THE TREASURY FINDS ACCEPTABLE BUT REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE SAID HE HOPES A COMPROMISE CAN BE REACHED SO THAT THE FULL HOUSE ENERGY AND COMMERCE COMMITTEE CAN TAKE ACTION BEFORE THE AUGUST RECESS A TREASURY SPOKESWOMAN SAID ONLY THAT THE DEPARTMENT IS STILL WORKING VERY CLOSELY WITH REP MARKEY AND HIS STAFF TO CRAFT A MUTUALLY ACCEPTABLE BILL A POSSIBLE COMPROMISE BEING NEGOTIATED WOULD FOLLOW THE BROAD OUTLINE OF THE BILL CLEARED BY THE PANEL BUT WOULD MAKE MODEST CHANGES IN AGENCY JURISDICTION AND PROCEDURES REP MARKEY WORKED WITH FRANK NEWMAN TREASURY UNDERSECRETARY AND MARY SCHAPIRO ACTING SECURITIES AND EXCHANGE COMMISSION CHAIRMAN IN TRYING UNSUCCESSFULLY TO PIECE TOGETHER A COMPROMISE BEFORE THE SUBCOMMITTEE ACTION THE SENATE MEANTIME INTENDS TO ACT QUICKLY ON ITS VERSION OF THE LEGISLATION WHICH WAS APPROVED EARLIER THIS YEAR BY THE SENATE BANKING COMMITTEE CONGRESSIONAL LEADERS IN THE SECURITIES FIELD ARE INTENT ON ENACTING A BILL THIS YEAR TO FILL HUGE REGULATORY GAPS REVEALED BY THE SALOMON BROTHERS INC TREASURY BOND SCANDALS UNDER THE BILL APPROVED YESTERDAY THE SEC WOULD RECEIVE SIGNIFICANT NEW POWERS ONE PROPOSAL BEING CONSIDERED WOULD UPGRADE TREASURY'S RESPONSIBILITY REP MARKEY PRAISED MR NEWMAN FOR HIS CONSTRUCTIVE ROLE BUT ADDED THAT IT IS IMPORTANT FOR US TO GET THE BALL ROLLING NOW THE MEASURE CLEARED BY THE HOUSE PANEL WOULD AUTHORIZE THE SEC TO REQUIRE DEALERS TO KEEP RECORDS IN A FORM THAT COULD BE TRANSMITTED ELECTRONICALLY TO THE SEC UPON REQUEST EMPOWER REGULATORS TO REQUIRE MARKET PARTICIPANTS TO REPORT LARGE POSITIONS IN TREASURY SECURITIES REGULATE GOVERNMENTSECURITIES SALES PRACTICES FOR THE FIRST TIME EVER GIVE THE SEC BACKSTOP AUTHORITY TO DEMAND BROADER DISSEMINATION OF BONDPRICE DATA AND REQUIRE DEALERS TO IMPOSE INTERNAL SAFEGUARDS AGAINST FRAUD ELEMENTS OF A POSSIBLE COMPROMISE BILL INCLUDE DROPPING SEC BACKSTOP POWER ON BONDPRICE DISSEMINATION IN LIEU OF AN ANNUAL SEC REPORT ON THE SUBJECT PERMANENTLY EXTENDING TREASURY'S NOWLAPSED RULEMAKING AUTHORITY UNDER THE 1986 GOVERNMENT SECURITIES ACT ASSURING TREASURY A ROLE IN RULE MAKING ON DEALER RECORD REPORTING AND ALLOWING BANK REGULATORS TO OVERSEE INTERNAL CONTROLS BY BANK DEALERS IN A BID TO EASE TURF TENSIONS BETWEEN THE HOUSE BANKING AND ENERGY AND COMMERCE PANELS REP MARKEY SAID THE SALOMON SCANDAL UNDERSCORED THE NEED TO MODERNIZE REGULATION OF THE SPRAWLING GOVERNMENTSECURITIES MARKET HE NOTED THAT FEDERAL PROBES ARE CONTINUING INTO SUSPECTED NONCOMPETITIVE ABUSES AND FICTITIOUS TRADES FOR TAX PURPOSES AS WELL AS INTO POSSIBLE MARKET MANIPULATON AND ANTITRUST VIOLATIONS 9307230112 930723 AUSTRALIAN ECONOMIC INDEX SYDNEY AUSTRALIA A LEADING INDEX OF THE AUSTRALIAN ECONOMY FELL 1 IN MAY FROM APRIL AFTER SIX CONSECUTIVE MONTHLY RISES THE INDEX OF WHERE THE ECONOMY IS HEADED IS COMPILED MONTHLY BY WESTPAC BANKING CORP AND MELBOURNE UNIVERSITY'S INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH A COINCIDENT INDEX OF THE CURRENT LEVEL OF ECONOMIC ACTIVITY ROSE 28 IN MAY FROM APRIL THIS FOLLOWS A FALL OF 07 IN THE COINCIDENT INDEX IN APRIL FROM MARCH 9307230111 930723 MARKETING & MEDIA BLOCKBUSTER EARNINGS ROSE 59 IN QUARTER AIDED BY NEW BUSINESS FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP SAID SECONDQUARTER EARNINGS SHOT UP 59 AS THE COMPANY REPORTED BIG GAINS IN ITS VIDEORETAIL BUSINESS AND ITS NEW MUSIC AND FILM OPERATIONS THE COMPANY POSTED NET INCOME OF 477 MILLION OR 23 CENTS A SHARE COMPARED WITH 30 MILLION OR 17 CENTS A SHARE A YEAR EARLIER REVENUE JUMPED 72 TO 4561 MILLION FROM 2646 MILLION THE STRONG SHOWING HELPED PUSH BLOCKBUSTER'S SHARES UP 175 OR 78 TO 24125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE EARNINGS HIT THE HIGH END OF ANALYSTS' EXPECTATIONS AS THE COMPANY POSTED STRONG RESULTS FOR ITS NEWLY ACQUIRED OPERATIONS THERE'S A SUPRISINGLY LARGE CONTRIBUTION TO EARNINGS FROM NONVIDEO OPERATIONS SAID ANDREW BEJA ANALYST WITH ADVEST GROUP IN HARTFORD CONN THE ACQUISITIONS ARE CERTAINLY HELPING THEM CONTINUE TO GROW AND THEY'RE DOING A GOOD JOB MANAGING THOSE ACQUSITIONS SAID CRAIG BIBB ANALYST WITH PAINEWEBBER THE COMPANY HEAVILY CROSSPROMOTED ITS DIFFERENT SEGMENTS OFFERING COUPONS FOR MUSIC PURCHASES TO ITS VIDEO RENTERS AND COUPONS FOR VIDEO RENTALS TO CUSTOMERS AT ITS MUSIC OUTLETS THE VIDEO STORES RAN TRAILERS FOR BEVERLY HILLS 90210 A SHOW PRODUCED BY SPELLING ENTERTAINMENT INC A FILM AND TELEVISION PRODUCTION COMPANY IN WHICH BLOCKBUSTER OWNS A MAJORITY STAKE THEN BLOCKBUSTER SOLD A VIDEO OF THE FINAL EPISODE OF THE SEASON BLOCKBUSTER'S CORE VIDEO BUSINESS CONTINUED TO DO WELL BOASTING SAMESTORE SALE INCREASES OF 54 ANALYSTS SAID THE COMPANY CONTINUES TO KNOCK OUT MOMANDPOP COMPETITORS AND GAIN MARKET SHARE MR BIBB SAID THE RAIN IN THE MIDWEST AND THE HEAT WAVE ON THE EAST COAST DROVE MANY CONSUMERS TO SEEK INDOOR ENTERTAINMENT THE STORES ALSO ENJOYED BIG GAINS IN THE RENTAL AND SALE OF VIDEO GAMES HE SAID SEPARATELY BLOCKBUSTER NAMED ANTONIO J ROMERO 43 YEARS OLD AS VICE PRESIDENT AND CHIEF EXECUTIVE OF NEWLEAF ENTERTAINMENT CORP A JOINT VENTURE THE COMPANY FORMED WITH INTERNATIONAL BUSINESS MACHINES CORP IN MAY TO DEVELOP A DIGITAL ENTERTAINMENT SYSTEM THE SYSTEM DESIGNED FOR MUSIC AND VIDEO RETAILERS WOULD BE ABLE TO CHURN OUT COMPACT DISKS ON DEMAND MR ROMERO PREVIOUSLY SERVED AS GENERAL MANAGER OF DOMESTIC AND INTERNATIONAL MARKETS FOR IBM'S SOUTH FLORIDA OPERATIONS 9307230110 930723 LEVITT APPROVED BY PANEL IN SENATE AS HEAD OF SEC WASHINGTON THE SENATE BANKING COMMITTEE UNANIMOUSLY APPROVED THE NOMINATION OF ARTHUR LEVITT JR AS CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION MR LEVITT'S APPROVAL BY THE FULL SENATE IS SO ASSURED THAT HE HAS BEEN SCHEDULED TO TESTIFY BEFORE AT LEAST THREE CONGRESSIONAL PANELS IN THE NEXT TWO WEEKS NOMINEES TYPICALLY DON'T TESTIFY THE COMMITTEE ALSO APPROVED THE NOMINATIONS OF JOSEPH E STIGLITZ AND ALAN S BLINDER TO BE MEMBERS OF THE COUNCIL OF ECONOMIC ADVISERS IN ADDITION THE COMMITTEE APPROVED TWO NOMINEES FOR POSITIONS AT THE DEPARTMENT OF HOUSING AND URBAN AFFAIRS SUSAN GAFFNEY AS INSPECTOR GENERAL AND G EDWARD DESEVE AS CHIEF FINANCIAL OFFICER 9307230109 930723 MEXICO'S VIDEO VISA TO GET NEW OWNERS AND CHANGE ITS NAME MEXICO CITY A PRIVATE INVESTOR GROUP LED BY MEXICAN BUSINESSMAN EDUARDO LEGORRETA AGREED TO PAY 1516 MILLION FOR GRUPO VIDEO VISA SA MEXICO'S LARGEST CHAIN OF VIDEO RENTAL STORES UNDER TERMS OF THE AGREEMENT MR LEGORRETA WILL PURCHASE 605 OF THE COMPANY'S SHARES FROM ITS FOUR PRINCIPAL SHAREHOLDERS WHICH INCLUDE EMILIO AZCARRAGA CHAIRMAN AND CHIEF EXECUTIVE OF MEXICAN MEDIA GIANT GRUPO TELEVISA SA THE DEAL IS BEING MANAGED BY MEXICAN INVESTMENT HOUSE INVEX CASA DE BOLSA SA AND IS EXPECTED TO CLOSE JULY 30 GRUPO VIDEO VISA SAID IN A STATEMENT MR LEGORRETA PLANS TO RENAME THE COMPANY VIDEO PRIMA SA IN THE FIRST QUARTER VIDEO VISA RECORDED NET SALES OF 1055 MILLION PESOS 338 MILLION DOWN FROM 1262 MILLION PESOS IN THE 1992 QUARTER THE COMPANY SHOWED A PROFIT OF 169 MILLION PESOS IN THE FIRST QUARTER UP FROM 14 MILLION PESOS A YEAR AGO VIDEO VISA HAS EXCLUSIVE LICENSES TO VIDEOCASSETTE DISTRIBUTION IN MEXICO OF MOST US FILM COMPANIES IT ALSO SELLS AND RENTS MEXICAN AND OTHER INTERNATIONAL FILMS 9307230108 930723 EW SCRIPPS TO SELL A STATION CINCINNATI EW SCRIPPS CO SAID IT AGREED TO SELL ITS BALTIMORE RADIO STATION WVRTFM TO PRIVATELY HELD CAPITOL BROADCASTING CO OF RALEIGH NC FOR ABOUT 98 MILLION THE MOVE IS PART OF THE COMPANY'S PLAN TO EXIT FROM THE RADIO BUSINESS EW SCRIPPS ALSO SAID IT IS CURRENTLY IN TALKS TO SELL ITS REMAINING RADIO STATION KUPLAM & FM LOCATED IN PORTLAND ORE THE COMPANY SAID IT EXPECTS TO REACH A FINAL AGREEMENT ON THAT SALE IN THE NEAR FUTURE 9307230107 930723 SENATE LETS PATENT LAPSE ON CONFEDERACY INSIGNIA WASHINGTON IT WAS THE LAST GASP OF THE CONFEDERACY THE SENATE REJECTED A PROPOSAL TO RENEW A DESIGN PATENT FOR THE UNITED DAUGHTERS OF THE CONFEDERACY INSIGNIA THE INSIGNIA IS THE ORIGINAL FLAG OF THE CONFEDERACY WITH THREE STRIPES AND A FIELD OF BLUE WITH SEVEN STARS IN A CIRCLE THE SENATE INITIALLY VOTED 5248 AGAINST A MOTION BY SEN CAROL MOSELEYBRAUN D ILL THE SENATE'S ONLY BLACK MEMBER TO KILL THE AMENDMENT SEN MOSELEYBRAUN ARGUED THAT CONGRESS SHOULDN'T GIVE ITS IMPRIMATUR TO A SYMBOL OF THE CONFEDERATE EFFORT IN THE CIVIL WAR A MOVE SHE SAID AMOUNTED TO SALUTING A SYMBOL OF RACISM THE SENATE THEN REVERSED ITSELF AND VOTED 7525 TO TABLE THE AMENDMENT MOST PEOPLE THOUGHT THAT WAS THE END OF THE ISSUE BUT YESTERDAY SEN JESSE HELMS R NC OFFERED A PATENTRENEWAL AMENDMENT AS THE SENATE DEBATED PRESIDENT CLINTON'S PLAN TO CREATE A NATIONAL SERVICE PROGRAM UNDER WHICH YOUNG PEOPLE COULD EARN FUNDS TO PAY FOR COLLEGE IN EXCHANGE FOR PERFORMING COMMUNITY WORK 9307230106 930723 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIAN LAWMAKERS GRANTED INDIVIDUALS THE BASIC RIGHT TO OWN LAND FOREIGNERS STILL CAN'T BUY PROPERTY THOUGH THEY CAN LEASE IT FOR AS LONG AS 99 YEARS THE LAND LEGISLATION ALLOWS RUSSIANS TO SELL AND MORTGAGE LAND LOCAL AUTHORITIES IN RUSSIA'S 89 REGIONS AND REPUBLICS WOULD REGULATE PRIVATE PROPERTY PRESIDENT BORIS YELTSIN HAS TWO WEEKS TO AMEND APPROVE OR REJECT THE BILL THE MEASURE COULD HAVE A BIG EFFECT ON THE AGRICULTURAL SECTOR LAND REFORM AND PRIVATE FARMING HAVE BEEN SLOW TO DEVELOP IN RUSSIA WHICH HAS 25000 COLLECTIVE AND STATE FARMS PRIVATE FARMERS LAST YEAR ACCOUNTED FOR 15 OF THE COUNTRY'S TOTAL RUSSIA WILL ALMOST DOUBLE BREAD PRICES TO AS MUCH AS 10 CENTS A LOAF TO BE OFFSET BY SUBSIDIES TO POOR FAMILIES THE STATE ALSO WILL BUY GRAIN FOR 65 A TON FROM FARMERS AND CUT THEIR SUBSIDIES AND SELL THE GRAIN AT HALF THAT PRICE TO BAKERIES AGRICULTURAL SUBSIDIES OF 933 MILLION THIS YEAR WERE JUST 31 OF WHAT FARMERS SOUGHT THE SIXMEMBER ASSOCIATION OF SOUTHEAST ASIAN NATIONS AND 12 MAJOR PACIFIC RIM COUNTRIES INCLUDING THE US JAPAN RUSSIA AND CHINA ARE POISED TO CREATE A FORUM THAT MAY BECOME THE MAIN ARENA FOR REGIONAL SECURITY TALKS THE NEW GROUP TENTATIVELY NAMED THE ASIAN REGIONAL FORUM IS EXPECTED TO BE ENDORSED AT THE ASEAN FOREIGN MINISTERS' ANNUAL MEETING IN SINGAPORE THAT ENDS TOMORROW AND TO HOLD ITS INITIAL SESSION SUNDAY THE DEVELOPMENTS ARE A SIGNIFICANT STEP TOWARD ESTABLISHING A MULTILATERAL GROUP TO DEAL WITH MATTERS SUCH AS TERRITORIAL DISPUTES THE EUROPEAN COMMUNITY PROPOSED REDUCING BULKWINE PRODUCTION TO PROTECT THE INDUSTRY AMID FALLING DEMAND AND COMPETITION FROM OUTSIDE THE TRADE BLOC WHICH HAS EXCESS SUPPLIES THE EC DOESN'T PLAN TO RESTRICT IMPORTS OF LESS EXPENSIVE WINES AN EC CUTBACK SUCH AS UPROOTING VINEYARDS WOULD HAVE THE GREATEST EFFECT ON SPAIN FRANCE ITALY PORTUGAL GERMANY GREECE AND LUXEMBOURG IN DECREASING ORDER OF OUTPUT EC PRODUCERS TURN OUT 317 BILLION GALLONS OF TABLE WINE A YEAR THE EC MAY SPEND 103 BILLION THIS YEAR TO BUY SURPLUS WINE WHICH COULD TOTAL ONE BILLION GALLONS BY THE YEAR 2000 IF PRODUCTION GOES UNCHECKED PAKISTAN DEVALUED ITS RUPEE CURRENCY FOR THE SECOND TIME IN TWO WEEKS TO BOLSTER SAGGING EXPORTS AND NARROW THE TRADE DEFICIT THE DEVALUATION OF 6 FOLLOWING ONE OF 32 ON JULY 16 PUT THE RUPEE AT 298 TO THE US DOLLAR THE ACTIONS WERE SPURRED BY THE CONVERTIBLE INDIAN RUPEE'S TUMBLE IN VALUE IN THE PAST TWO YEARS THAT HAS HURT PAKISTAN'S EXPORTERS ESPECIALLY TEXTILE FIRMS WHICH WELCOMED THE DEVALUATIONS TO HELP IMPROVE THEIR ABILITY TO COMPETE WITH INDIA PAKISTAN HAS RESISTED MAKING ITS RUPEE FREELY CONVERTIBLE UNTIL IT CAN BOOST ITS FOREIGNEXCHANGE RESERVES FOREIGN INVESTMENT APPROVED IN INDONESIA IN THE FIRST HALF INCREASED 16 TO 43 BILLION FROM A YEAR EARLIER IN ALL OF 1992 INVESTMENT FROM ABROAD TOTALED 1031 BILLION MOST OF IT RECORDED IN THE SECOND HALF AND THE INVESTMENT COORDINATING BOARD HOPES TO EQUAL OR EXCEED THAT SUM THIS YEAR INDONESIA IS PREPARING FOR UNVEILING NEXT MONTH A DEREGULATORY POLICY TO ATTRACT MORE FOREIGN INVESTORS THE BRITISH CHAMBERS OF COMMERCE SAID MANUFACTURING EXPORT GROWTH SLOWED IN THE SECOND QUARTER FROM THE PREVIOUS THREE MONTHS AND IT WARNED THAT BRITAIN MAY BE LOSING A GLOBALLY COMPETITIVE EDGE GAINED AFTER THE POUND'S DEVALUATION LAST YEAR THE GROUP SAID ITS QUARTERLY SURVEY OF 8587 MANUFACTURING AND SERVICE COMPANIES LAST MONTH CONFIRMED THAT BRITAIN IS UNDERGOING A GRADUAL BUT BROADBASED ECONOMIC RECOVERY BUT NOTED CONTINUING WEAKNESS IN CRUCIAL AREAS CHINA WILL IMPLEMENT A PLAN TO CURB RAMPANT PROPERTY SPECULATION AND TIGHTEN CONTROLS OVER LAND USE SALES AND DEVELOPMENT THE CHINA NEWS SERVICE SAID OFFICIALS CITED POOR MANAGEMENT BY LOCAL OFFICIALS WHO HAVE SOLD OR REDEVELOPED LAND TO RAISE MONEY FOR INVESTMENT OFTEN LAND IS SOLD CHEAPLY WITHOUT COMPETITIVE BIDDING ALLOWING SPECULATORS TO PROFIT AND SPECULATION HAS PUSHED PRICES UP AMONG THE WORLD'S HIGHEST MEANWHILE CHINA'S MILITARY CRACKED DOWN ON MISUSE OF PUBLIC FUNDS WITHIN ITS RANKS IN THE LATEST EFFORT TO COOL CHINA'S FASTGROWING ECONOMY THE CENTRAL MILITARY COMMISSION WANTS TO END THE SIPHONING OF MILITARY FUNDS INTO OFFICERS' PERSONAL ACCOUNTS AND INTO REAL ESTATE AND FOREIGNCURRENCY SPECULATION CHINA PLANS TO TRAIN 100000 MORE LAWYERS BY THE END OF THE DECADE CITING GROWING DEMAND FOR EXPERTISE IN BUSINESS AND CIVIL CASES THE COUNTRY HAS 4100 LAW FIRMS AND 50000 LAWYERS YET ALL BUT ABOUT 200 FIRMS ARE RUN BY THE GOVERNMENT WHICH INTENDS TO ALLOW MORE INDEPENDENT LAW OFFICES YUGOSLAVIA FACING ECONOMIC RUIN FROM RAMPANT INFLATION AND CIVIL WAR DEVALUED ITS NEARLY WORTHLESS DINAR 82 AGAINST WESTERN CURRENCIES THE NEW OFFICIAL EXCHANGE RATE IS 136 MILLION DINARS TO THE DOLLAR ALIGNING WITH THE BLACKMARKET RATE BRITAIN'S INDEPENDENT TELEVISION COMMISSION WHICH LICENSES AND REGULATES COMMERCIAL BROADCASTERS TOLD STATIONS TO REDUCE VIOLENCE SHOWN IN TV PROGRAMS THE AGENCY CITED CONCERN ABOUT CUMULATIVE EFFECTS OF DAILY IMAGES OF AGGRESSION 9307230105 930723 CFTC ENACTS DUAL TRADING BAN IN BID TO BOOST EXCHANGES' FRAUD DETECTION BY JEFFREY TAYLOR AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL THE COMMODITY FUTURES TRADING COMMISSION ENACTED A BAN ON THE CONTROVERSIAL PRACTICE OF DUAL TRADING THAT IS MEANT TO SERVE AS A WARNING TO FUTURES EXCHANGES TO GET BETTER AT DETECTING FRAUD THE PRACTICAL EFFECT OF THIS RESTRICTION WILL BE TO PUT PRESSURE ON EXCHANGES TO IMPROVE THEIR AUDIT TRAILS SAID WILLIAM P ALBRECHT ACTING CHAIRMAN OF THE CFTC AUDIT TRAILS ARE THE MOMENTTOMOMENT RECORDS OF MARKET ACTIVITY THAT INVESTIGATORS USE TO ROOT OUT TRADING ABUSES DUAL TRADING IS THE PRACTICE IN PLACE IN SOME FORM AT ALL THE NATION'S FUTURES EXCHANGES UNDER WHICH FLOOR TRADERS MAY BUY OR SELL CONTRACTS FOR INVESTORS AND FOR THEIR OWN ACCOUNTS SIMULTANEOUSLY CRITICS CHARGE THAT IT CREATES A STRONG TEMPTATION FOR TRADERS TO CHEAT THEIR CUSTOMERS WHILE THE EXCHANGES MAINTAIN THAT IT ENHANCES MARKET LIQUIDITY ODDLY NO ONE THINKS THE CFTC BAN WILL HALT DUAL TRADING THAT IS BECAUSE OF A FLEXIBLE STRUCTURE OF EXEMPTIONS THAT ALLOW EXCHANGES TO CONTINUE THE PRACTICE IF THEY CAN PROVE THEY ARE IMPROVING THEIR FRAUDDETECTION SYSTEMS ALL THE EXCHANGES WILL PROBABLY FILE FOR EXEMPTIONS SAID A CFTC OFFICIAL WHO REQUESTED ANONYMITY HE SAID THAT UNDER THE LAW AN EXCHANGE CAN CONTINUE DUAL TRADING AS LONG AS IT SATISFIES THE CFTC THAT IT IS MAKING SUFFICIENT AND TIMELY IMPROVEMENTS IN AUDIT PROCEDURES THE CHICAGO FUTURES MARKETS AND THEIR WELLFINANCED WASHINGTON POLITICAL ACTION COMMITTEES LOBBIED CONGRESS FOR THE EXEMPTIONS DURING HEARINGS LAST YEAR ON A CFTC REAUTHORIZATION LAW THE DUALTRADING BAN ANNOUNCED YESTERDAY IS A PRODUCT OF THAT LAW IT IS AMONG SEVERAL NEW COMMODITIESLAW PROVISIONS THAT LAWMAKERS DEVISED IN THE AFTERMATH OF A 1988 FEDERAL UNDERCOVER INVESTIGATION OF FRAUD IN CHICAGO'S BIG FUTURES MARKETS THE WORLD'S TWO BIGGEST FUTURES MARKETS THE CHICAGO BOARD OF TRADE AND CHICAGO MERCANTILE EXCHANGE HAVE TAKEN DIFFERENT APPROACHES TO DUAL TRADING THE BOARD OF TRADE ALLOWS DUAL TRADING IN ALL ITS FUTURES CONTRACTS AND HAS STEADFASTLY RESISTED EFFORTS TO CURTAIL THE PRACTICE PATRICK ARBOR BOARD OF TRADE CHAIRMAN SAID HIS EXCHANGE IS WORKING TO UPGRADE ITS AUDITING CAPABILITIES TO 90 ACCURACY THE STANDARD REQUIRED BY THE NEW CFTC RULES WE WILL HAVE TO GET AN EXEMPTION MR ARBOR SAID THE REALITY IS THAT THIS EXCHANGE AND LIKELY EVERY OTHER EXCHANGE WILL BE GRANTED A CONDITIONAL EXEMPTION BECAUSE WE'RE ALL WORKING TOWARD 90 HOWEVER A MARCH 1993 CFTC REPORT ON THE STATE OF THE BOARD'S SOCALLED COMPUTERIZED TRADE RECONSTRUCTION OR CTR AUDITING PROCEDURE SAYS THE CFTC FOUND NUMEROUS SHORTCOMINGS IN THE SYSTEM FOR INSTANCE THE CFTC HAS CONTINUED TO FIND THAT A SIGNIFICANT PERCENTAGE OF CTRASSIGNED TRANSACTION TIMES WERE INCONSISTENT WITH UNDERLYING TRADE DOCUMENTATION SAID THE REPORT A COPY OF WHICH WAS OBTAINED BY THIS NEWSPAPER THE MERC HAS VOLUNTARILY RESTRICTED DUAL TRADING IN THE MOST ACTIVE CONTRACT MONTHS OF ITS BIG FUTURES CONTRACTS INCLUDING MOST OF ITS CURRENCY CONTRACTS AND ITS HUGE EURODOLLAR SHORTTERM INTERESTRATE CONTRACTS THE MERC ALLOWS DUAL TRADING IN CONTRACTS SUCH AS CATTLE PORK BELLIES AND THE LESS ACTIVE CONTRACT MONTHS OF CURRENCY FUTURES WE WILL APPLY FOR AN EXEMPTION BASED ON TWO THINGS SAID MERC SPOKESMAN ANDREW YEMMA WE BELIEVE THAT WE CAN MEET THEIR AUDITTRAIL STANDARDS AND BASED ON THE FACT THAT WE HAVE ALREADY VOLUNTARILY RESTRICTED DUAL TRADING FOR 75 OF OUR TRADING VOLUME WE WANT TO KEEP OUR CURRENT SYSTEM IN PLACE THE CFTC OFFICIAL WOULDN'T SPECULATE ON WHETHER THE CHICAGO EXCHANGES WILL WIN THE EXEMPTIONS THEY SEEK BUT SAID THE AGENCY WOULD TAKE THE MERC'S VOLUNTARY DUALTRADING RESTRICTIONS INTO ACCOUNT WHEN IT RULES ON THE MERC'S APPLICATION THE NEW PROHIBITION WILL AFFECT FUTURES CONTRACTS WITH DAILY VOLUME OF 8000 CONTRACTS OR MORE THERE ARE ABOUT 25 SUCH CONTRACTS ON FIVE US FUTURES EXCHANGES THE TWO MARKETS IN CHICAGO AND THREE IN NEW YORK NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE WILL APPLY FOR AN EXEMPTION SAID JAMES BOWE SENIOR VICE PRESIDENT WE DON'T BELIEVE DUALTRADING SHOULD BE BANNED HE SAID WE BELIEVE IT IS AN INTEGRAL PART OF THE MARKETMAKING PROCESS IF WE DON'T GET AN EXEMPTION IT WILL BE EXTREMELY HARMFUL TO OUR BUSINESS PARTICULARLY BECAUSE WE HAVE SERIOUS OVERSEAS COMPETITION ABOUT 70 OF THE COFFEE MARKET'S 208 FLOOR TRADERS ARE DUAL TRADERS COMPARED WITH 40 AT OTHER EXCHANGES HE SAID DANIEL RAPPAPORT CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE WHERE ENERGY FUTURES CONTRACTS ARE TRADED SAID HE EXPECTS ALL THE NEW YORK FUTURES MARKETS TO APPLY FOR EXEMPTIONS DUALTRADING ENHANCES LIQUIDITY IN THE MARKET AND THE DEPTH OF LIQUIDITY OF THE US MARKET IS WHAT ATTRACTS GLOBAL INVESTORS MR RAPPAPORT SAID A SPOKESMAN FOR NEW YORK'S COMMODITY EXCHANGE WHICH TRADES PRECIOUSMETALS CONTRACTS SAID ITS OFFICIALS ARE EXTREMELY DISAPPOINTED WITH THE BAN AND WILL FILE FOR AN EXEMPTION JOHN DAMGARD PRESIDENT OF THE FUTURES INDUSTRY ASSOCIATION A WASHINGTON TRADE AND LOBBYING GROUP SAID PLANS AT ALL EXCHANGES TO REPLACE PAPER TRADING CARDS WITH HANDHELD COMPUTERS BY 1995 WOULD MORE THAN SATISFY THE AUDITTRAIL REQUIREMENTS PROMPT INSTALLATION OF THE HANDHELD COMPUTERS WAS ANOTHER REQUIREMENT OF LAST YEAR'S CFTC REAUTHORIZATION LAW 9307230104 930723 INTERNATIONAL WORLD ECONOMY RUSSIAN VENTURE TO REFIT MISSILE FACTORY LAUNCHES QUESTIONS ON EBRD'S ROLE BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RUSSIAN JOINT VENTURE SOUNDED JUST RIGHT WHEN THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT GOT INTERESTED SINCE THEN NEARLY EVERYTHING HAS GONE WRONG WHAT COMES NEXT REMAINS UNCLEAR BUT THE CASE RAISES BASIC QUESTIONS ABOUT THE EBRD ITSELF WHAT IS THE BANK'S MISSION AND WHAT SHOULD ITS LENDING POLICIES BE THE RUSSIAN VENTURE CALLED VOLZHSTOR PLANNED TO REFIT PART OF AN SS22 MISSILE WARHEAD FACTORY NEAR VOLGOGRAD TO MAKE COMPUTER PARTS FOR EXPORT IT WOULD USE COSTLY US TECHNOLOGY TO ASSEMBLE UPTODATE HARD DISK DRIVES WITH A CRUCIAL PRICE ADVANTAGE THANKS TO CHEAP RUSSIAN LABOR THE LONDONBASED EBRD FOUNDED BY WESTERN GOVERNMENTS TO HELP RESUSCITATE THE FORMER SOVIET EMPIRE SEEMED READY TO CONSIDER TAKING AN EQUITY STAKE THE PROJECT HAS A POTENTIAL TO BECOME ONE OF THE MOST ATTRACTIVE INVESTMENT TARGETS FOR THE EBRD IN RUSSIA A BANK OFFICIAL WROTE IN OCTOBER BUT ODD THINGS HAPPENED ON THE WAY TO FRUITION MOSCOW DECLARED THE ORIGINAL RUSSIAN PARTNER BANKRUPT PART OF A SWEEPING POLICY MOVE THAT HURT MANY STATE ENTERPRISES SOME OF THEM RELATIVELY SOUND A RUSSIAN BANK OWNED BY THE FORMER INTOURIST TRAVEL AGENCY COULDN'T PROVIDE 82 MILLION AS PROMISED BECAUSE THE STATE FROZE MOST HARD CURRENCY DEPOSITS THE AMERICAN PARTNER COULDN'T OR WOULDN'T FILL THE GAP THE EBRD GOT COLD FEET IT STOPPED TALKING ABOUT EQUITY AND SAID IT WOULD ONLY CONSIDER COMMERCIAL LOANS TO THE AMERICAN PARTNER PROVIDED IT PLEDGED ITS US ASSETS RAISED 1 MILLION MORE AND CHANNELED FUTURE INCOME FROM OTHER SOURCES TO THE JOINT VENTURE THE EBRD WOULDN'T DO ANYTHING FOR VOLZHSTOR ITSELF SO THE EXWARHEAD FACTORY WHICH MADE AND SOLD 7000 DISK DRIVES SUCCESSFULLY TO PROVE IT COULD IS ON STANDBY A SKELETON STAFF KEEPS IT CLEAN AND MENDED BUT THE COST OF RESTARTUP INCREASES DAILY THERE'S NO CERTAINTY VOLZHSTOR WILL EVER BUILD COMPUTER COMPONENTS AGAIN BUT IT IS PRODUCING LOTS OF BLAME MICHAEL CAMPBELL CHIEF EXECUTIVE OFFICER OF UNISTOR INTERNATIONAL THE SMALL CALIFORNIA COMPANY THAT HAS SPENT 3 MILLION TO KEEP THE PROJECT ALIVE AND WILL INVEST MORE SAYS THE BANK PULLED THE RUG OUT FROM UNDER HIM WE FEEL THEY ARE ONLY INTERESTED IN BEING COMPLETELY SECURE IN THEIR LENDING PRACTICES AND ARE ONLY INTERESTED IN FUNDING PROJECTS WHERE SOMEONE ELSE TAKES THE RISK JUST LIKE ANY COMMERCIAL BANK THAT PUTS PROFIT FIRST HE COMPLAINS I BELIEVE THAT IF EBRD IS TO SUCCEED IN THEIR ROLE AS A DEVELOPMENT BANK IN EASTERN EUROPE THEY MUST TAKE RISKS EBRD OFFICIALS SAY THE AMERICAN COMPANY DOESN'T APPRECIATE HOW HARD IT IS TO FUND ANY PROJECT IN THE POLITICAL AND ECONOMIC TURMOIL THAT IS RUSSIA AND THAT THE FIRM ALSO OVERRATES ITS OWN CREDITWORTHINESS THESE NEW CONDITIONS CANNOT GUARANTEE FUNDING BUT WITHOUT THEM FUNDS WILL DEFINITELY NOT BE AVAILABLE WARNS AN EBRD MERCHANT BANKER THE US GOVERNMENT THE LARGEST OWNER 10 OF THE EBRD THINKS THE BANK SHOULD TAKE A FEW RISKS TO SUPPORT FLEDGLING BUSINESS IN THE EAST THE JOB OF A DEVELOPMENT BANK ISN'T TO DO WHAT OTHER BANKS DO BUT TO DO WHAT THEY WON'T DO SAYS LAWRENCE SUMMERS UNDERSECRETARY OF THE TREASURY FOR INTERNATIONAL AFFAIRS THE PARTICULAR CHARGE OF THE EUROPEAN BANK IS TO DEVELOP THE PRIVATE SECTOR BUT THAT'S HARD IN RUSSIA WHERE RULES CHANGE CONSTANTLY CORRUPTION IS ENDEMIC AND POLITICS UNSTABLE SAYS JOAQUIN GEFAELL A SENIOR BANKER IN THE EBRD'S MERCHANT BANKING DIVISION WORKING ON PROJECTS IN THE FORMER SOVIET UNION HIS OFFICE ALREADY SUPPORTS TWO DOZEN VENTURES THERE NOBODY WOULD TOUCH RUSSIA THESE DAYS IF THE EBRD WASN'T INVOLVED HE SAYS DO YOU KNOW ANY OTHER BANK WHICH WOULD TAKE EQUITY IN PROJECTS THERE AND WHILE THE EBRD ISN'T A PROFITMAXIMIZING ENTITY HE INSISTS IT MUST APPLY SOUND BANKING PRINCIPLES THAT PROMISE ADEQUATE REMUNERATION HE ISN'T FAMILIAR WITH VOLZHSTOR BUT MR GEFAELL SAYS THE EBRD'S OWNERS WANT THEIR TAXPAYERS' MONEY DEPLOYED WITH CAUTION THE BANK CAN'T GO BLINDFOLDED THERE AND GIVE AWAY ITS CASH BUT CRITICS SAY THE BANK SHOULD RUN AHEAD OF COMMERCIAL RIVALS NOT WITH THEM PERHAPS VOLZHSTOR HAS A FLAW NOT READILY APPARENT BUT IT MEETS THE EBRD'S TOP CRITERIA DEFENSE CONVERSION AND OFFERS A HIGHTECH PRODUCT WITH A MARKET IF NOTHING ELSE THE CASE ILLUSTRATES ISSUES THAT NEED REVIEW ONCE THE TROUBLED EBRD HAS NEW LEADERS IN PLACE 9307230103 930723 BROWNINGFERRIS BUYS ASSETS HOUSTON BROWNINGFERRIS INDUSTRIES INC SAID IT ACQUIRED THE ASSETS OF CLOSELY HELD MICHIGAN DISPOSAL SERVICES A REGIONAL WASTEHAULING AND RECYCLING COMPANY BASED IN KALAMAZOO THE WASTEHANDLING CONCERN DIDN'T DISCLOSE TERMS OF THE TRANSACTION MICHIGAN DISPOSAL HAD 1992 REVENUE OF JUST UNDER 19 MILLION BROWNINGFERRIS SAID 9307230102 930723 TRAVEL WITH FEWER ATTENDANTS ABOARD JETS MOOD OF PASSENGERS TURNS TURBULENT BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL IF FLIGHT ATTENDANTS REPRESENT THE PUBLIC FACE OF AN AIRLINE IT IS A FACE THAT IS BECOMING MUCH LESS CONSPICUOUS SEEKING TO STANCH THEIR FINANCIAL HEMORRAGHING MOST AIRLINES ARE PUTTING FEWER ATTENDANTS ON BOARD THEIR AIRCRAFT THE RESULT PASSENGERS WAIT LONGER FOR MEALS AND BEVERAGES MEAL CARTS CLOG THE AISLES LONGER DIRTY TRAYS STACK UP AND OBTAINING THE LITTLE EXTRAS OF LIFE ALOFT A PILLOW A MAGAZINE A DRINK OF WATER IS OFTEN A DOITYOURSELF EXPERIENCE WE'RE GETTING A LOT OF COMPLAINTS PARTICULARLY FROM FAMILIES SAYS BLAKE FLEETWOOD PRESIDENT OF PLANETARIUM AMERICAN EXPRESS A NEW YORK TRAVEL AGENCY FLIGHT ATTENDANTS USED TO SHOW KIDS THE COCKPIT BUT NOW THEY'RE TOO HARRIED FEDERAL REGULATIONS REQUIRE THAT PLANES HAVE AT LEAST ONE ATTENDANT FOR EVERY 50 SEATS BUT CARRIERS HAVE TYPICALLY EXCEEDED THE MINIMUM IN FACT DURING THE FLUSH DAYS OF THE LATE 1980S SOME AIRLINES PROMOTED SURPLUS STEWARDESSES IN ADS NO MORE IN MANY CASES CARRIERS ARE MOVING TOWARD SOCALLED VARIABLE STAFFING FORMULAS THE IDEA IS TO STAFF EACH FLIGHT WITH A MINIMUM NUMBER OF ATTENDANTS THEN ADD A SUPPLEMENTAL CREW MEMBER IF NECESSITATED BY PASSENGER LOADS LENGTH OF FLIGHT OR TYPE OF MEAL SERVICE AMERICAN AIRLINES THE NATION'S LARGEST CARRIER LATE LAST YEAR CUT THE NUMBER OF ATTENDANTS ON ITS BOEING 757S TO FOUR FROM FIVE A FIFTH ATTENDANT COMES ON BOARD WHEN THE 188SEAT PLANE FLIES 110 PASSENGERS OR MORE THE AMR CORP UNIT IS PUSHING FOR SIMILAR CUTS ON ITS OTHER AIRCRAFT IN CURRENT CONTRACT NEGOTIATIONS WITH THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS ATTENDANTS HAVE BEEN WORKING WITHOUT A CONTRACT SINCE LAST YEAR AMERICAN CUT STAFFING LEVELS ON ITS 757S BECAUSE THOSE 70 JETS CAME INTO THE FLEET AFTER THE MOST RECENT CONTRACT HAD BEEN SIGNED AN AMERICAN SPOKESMAN SAYS CURRENT STAFFING LEVELS ON MANY OF ITS AIRCRAFT ARE FINANCIALLY UNCOMPETITIVE COMPARED WITH THAT OF ITS RIVALS HE SAYS RECENT OR PROPOSED STAFF CUTS WILL NOT HURT SERVICE BECAUSE VARIABLE MANNING FORMULAS ENABLE THE AIRLINE TO ALIGN SERVICE WITH DEMAND BUT AMERICAN'S FLIGHT ATTENDANTS SAY PASSENGERS ON THE 757S HAVE FELT THE DIFFERENCE TERRY JELLEY AN ATTENDANT FOR 22 YEARS SAYS TWO ATTENDANTS INSTEAD OF THREE NOW OFTEN SERVE THE MAIN CABIN AND THAT MEANS MEAL SERVICE THAT USED TO TAKE 1 1/2 HOURS TO COMPLETE NOW TAKES 2 1/2 HOURS THE MEAL CARTS ARE IN THE AISLE LONGER AND THAT BLOCKS ACCESS TO THE LAVATORY MS JELLEY SAYS ANOTHER AMERICAN FLIGHT ATTENDANT SAYS HER SUPERVISOR TOLD HER NOT TO TRAIN ON THE 757 BECAUSE THE EXTRA WORKLOAD IS SO ONEROUS AT MOST AIRLINES FLIGHT ATTENDANTS ARE GUARANTEED PAYMENT FOR A MINIMUM NUMBER OF FLYING HOURS EACH MONTH THEN THEY RECEIVE ADDITIONAL INCOME FOR EXTRA HOURS SO CARRIERS CAN SIGNIFICANTLY SQUEEZE COSTS BY REDUCING ATTENDANTS' FLYING TIME AMERICA WEST AIRLINES SAYS IT HAS SAVED 3 MILLION A YEAR SINCE INITIATING VARIABLE STAFFING LEVELS THREE YEARS AGO THE CARRIER'S BOEING 737300 JETS THAT USED TO ALWAYS FLY WITH FOUR ATTENDANTS NOW HAVE THREE BUT WILL GET A FOURTH BASED UPON SEVERAL FACTORS INCLUDING PROJECTED PASSENGERS AN AMERICA WEST SPOKESMAN SAYS THE AIRLINE HAS HAD NO COMPLAINTS FROM EITHER ITS PASSENGERS OR ITS CREW MEMBERS ABOUT LOWER STAFFING LEVELS BUT FLIGHT ATTENDANTS AT MANY CARRIERS SAY THAT VARIABLE STAFFING FREQUENTLY FALLS SHORT ONE AMERICA WEST ATTENDANT CALLS IT VARIABLE SHAFTING THE PROBLEM THEY SAY IS THAT AN AIRLINE CAN'T ALWAYS PREDICT PASSENGER LOADS AND A THRONG OF LASTMINUTE FLIERS CAN RESULT IN A BADLY UNDERMANNED FLIGHT CARRIERS SOMETIMES CAN'T PULL TOGETHER A FULL CREW THERE WERE MANY TIMES WHEN WE DIDN'T HAVE ENOUGH FLIGHT ATTENDANTS BECAUSE THEY WERE ON THEIR DAYS OFF AND WEREN'T AROUND SAYS CAROL AUSTIN A USAIR ATTENDANT AND UNION PRESIDENT FOR THAT CARRIER'S ASSOCIATION OF FLIGHT ATTENDANTS THE USAIR GROUP INC UNIT REDUCED IN 1990 THE MINIMUM NUMBER OF ATTENDANTS TO THREE FROM FOUR ON ITS BOEING 737300S THE PRINCIPAL JET IN THE AIRLINE'S FLEET SEVERAL FACTORS WERE SUPPOSED TO TRIGGER A FOURTH CREW MEMBER SUCH AS FLIGHTS THAT WERE AT LEAST 2 1/2 HOURS LONG AND HAD MORE THAN 90 PASSENGERS BUT ON MANY FLIGHTS ONLY TWO ATTENDANTS SERVED THE MAIN CABIN WITH 120 SEATS THE OTHER ATTENDANT SERVED THE EIGHTSEAT FIRSTCLASS CABIN WE HAD THOUSANDS OF COMPLAINTS MRS AUSTIN SAYS MEAL SERVICE WAS A PARTICULAR PROBLEM PEOPLE HAD TRAYS IN FRONT OF THEM AND THEY COULDN'T GET UP TO GO TO THE BATHROOM FLIGHT ATTENDANTS USED TO BE THERE JUST TO MAKE SURE YOU WERE HAPPY SAYS PATRICK KALNAS A HUMANRESOURCES MANAGER FOR A COMPUTER CONSULTING FIRM IN PITTSBURGH WHO FLIES FREQUENTLY ON USAIR 737300 JETS WHEN USAIR CUT THE NUMBER OF FLIGHT ATTENDANTS ON MANY OF THESE JETS MR KALNAS SAYS SERVICE WENT OUT THE WINDOW RECALLING THE DAYS WHEN THE CABIN CREW USED TO CALL GATE AGENTS FOR INFORMATION ON CONNECTING FLIGHTS HE SAYS THAT ATTENDANTS NOW CAN BARELY DO THE INITIAL SERVICE GETTING DRINKS SAY LET ALONE CATERING TO PASSENGERS INDIVIDUALLY EARLIER THIS YEAR USAIR DECIDED TO REINSTATE THE FOURTH CREW MEMBER ON ALL 737300 FLIGHTS WHILE DECREASING THE ATTENDANTS ON OTHER AIRCRAFT MRS AUSTIN HOWEVER SAYS MOST OF THE 737S ARE STILL FLYING WITH THREE USAIR SAYS ITS VARIABLE STAFFING LEVELS WERE CAREFULLY DESIGNED TO ENSURE THAT SERVICE WAS NEVER AFFECTED AND THE AIRLINE VIGOROUSLY DENIES THAT PASSENGERS EVER COMPLAINED ABOUT FLIGHTATTENDANT STAFFING THAT HAS NEVER SHOWN UP IN ANY CONSUMER FEEDBACK WE'VE GOTTEN A SPOKESWOMAN SAYS ASKED HOW THREE ATTENDANTS COULD DELIVER THE SAME SERVICE AS FOUR ATTENDANTS SHE SAYS MAYBE WE WERE OVERSTAFFED USAIR SAYS IT PUT THE FOURTH CREW MEMBER BACK ON THE 737S BECAUSE THAT WAS MORE EFFICIENT THAN HAVING AN EXTRA ATTENDANT GO ON AND OFF FLIGHTS USAIR'S MD80S AND 727200S BOTH OF WHICH USED TO FLY WITH A MINIMUM OF FIVE ATTENDANTS NOW FLY WITH FOUR AND A FIFTH COMES ON BOARD WHEN CERTAIN CONDITIONS ARE MET IN SOME CASES AIRLINES ARE FLYING THE SAME ROUTES WITH SMALLER JETS REDUCING THE NUMBER OF FLIGHT ATTENDANTS ON BOARD EVEN THOUGH THE NUMBER OF PASSENGERS MAY BE THE SAME FOR EXAMPLE TRANS WORLD AIRLINES HAS REPLACED SEVERAL BOEING 747 JUMBO JETS WITH 14 ATTENDANTS WITH SMALLER BOEING 767S WITH EIGHT ATTENDANTS THE 747S WERE USUALLY FLYING WITH MANY EMPTY SEATSTHERE ARE 391 TOTAL SO THEIR PASSENGERS OFTEN RECEIVED A WINDFALL OF SERVICE SAYS A TWA SPOKESMAN USING FEWER ATTENDANTS ON THE FORMER 747 ROUTES HE SAYS BRINGS SERVICE IN LINE WITH DEMAND AIRLINES ARE ALSO CUTTING STAFFING IN CONJUNCTION WITH REDUCING OTHER ONBOARD SERVICE UAL CORP'S UNITED AIRLINES ELIMINATED ONE OF TWO MEALS ON ITS 15HOUR FLIGHT FROM SAN FRANCISCO TO HONG KONG WHICH FACILITATED REMOVING ONE OF 16 ATTENDANTS FROM THE 747400 JUMBO JET IT WAS ONE OF SEVERAL AIRCRAFT AFFECTED BY STAFFING CUTS IT'S IN A FLIGHT ATTENDANT'S NATURE TO DO EVERYTHING THEY CAN TO HELP PEOPLE SAYS KEVIN LUM PRESIDENT OF THE ASSOCIATION OF FLIGHT ATTENDANTS AT UNITED BUT WHEN YOU'VE GOT PEOPLE STRETCHED REALLY THIN THEY CAN ONLY DO SO MUCH 9307230101 930723 WHO'S NEWS VANS INC NAMES SCHOENFELD ORANGE CALIF VANS INC SAID IT NAMED WALTER E SCHOENFELD ITS ACTING PRESIDENT AND CHIEF EXECUTIVE OFFICER TO THOSE POSTS PERMANENTLY MR SCHOENFELD 62 YEARS OLD WHO IS ALSO VICE CHAIRMAN OF THE CASUAL FOOTWEAR COMPANY WAS NAMED TO THE INTERIM POSTS IN APRIL AFTER THE RESIGNATION OF RICHARD P LEEUWENBURG SEPARATELY VANS POSTED A 63 DROP IN NET INCOME FOR THE FOURTH QUARTER ENDED MAY 31 TO 12 MILLION OR 13 CENTS A SHARE FROM 34 MILLION OR 35 CENTS A SHARE A YEAR EARLIER SALES FELL 86 TO 227 MILLION FROM 249 MILLION 9307230100 930723 MB COMMUNICATIONS SPINOFF PITTSBURGH MB COMMUNICATIONS INC SAID ITS BOARD APPROVED IN PRINCIPLE A DISTRIBUTION TO ITS STOCKHOLDERS OF ITS MICOM COMMUNICATIONS CORP UNIT THE UNIT ACCOUNTED FOR ABOUT A THIRD OF THE COMMUNICATIONS SERVICES CONCERN'S SALES IN THE YEAR ENDED MARCH 31 THE SPINOFF COULD BE COMPLETED BY THE MIDDLE OF 1994 IF THE COMPANY RECEIVES A TAX RULING 9307230099 930723 PROMUS CHURCHILL DOWNS CASINO MEMPHIS TENN PROMUS COS SAID ITS HARRAH'S CASINO DIVISION AGREED WITH CHURCHILL DOWNS INC TO PURSUE DEVELOPMENT OF A RIVERBOAT CASINO IN INDIANA A SPOKESMAN FOR PROMUS A HOTEL AND CASINO CONCERN SAID THE TWO COMPANIES CURRENTLY HAVE NO SPECIFIC PLANS ABOUT WHEN OR WHERE THEY MIGHT OPEN A RIVERBOAT OPERATION THE TWO COMPANIES ADDED THAT THEY PLAN TO PURSUE OTHER GAMBLING OPPORTUNITIES AS THEY BECOME AVAILABLE CHURCHILL DOWNS BASED IN LOUISVILLE KY IS PRIMARILY INVOLVED IN THOROUGHBRED RACING HARRAH'S OPERATES CASINOS IN NEW JERSEY AND NEVADA 9307230098 930723 INITIAL PUBLIC OFFERINGS SET A RECORD FOR THE FIRST HALF NEW YORK TAKING ADVANTAGE OF BUOYANT MARKET CONDITIONS COMPANIES SOLD MORE NEW STOCK ISSUES TO THE PUBLIC IN THE FIRST SIX MONTHS OF THIS YEAR THAN DURING ANY SIMILAR PERIOD ACCORDING TO STANDARD & POOR'S CORP 289 COMPANIES SOLD 264 BILLION OF STOCK IN INITIAL PUBLIC OFFERINGS DURING THE FIRST HALF UP FROM 276 COMPANIES ISSUING 197 BILLION OF IPOS IN THE YEARBEFORE PERIOD S&P SAID THE THREE BESTPERFORMING INITIAL PUBLIC OFFERINGS DURING THE FIRST HALF WERE ALL TECHNOLOGY STOCKS S3 INC MICROCHIP TECHNOLOGY AND RESOUND CORP THE THREE WORSTPERFORMING IPOS WERE BIOSURFACE TECHNOLOGY ABSOLUTE ENTERTAINMENT AND PROXIMA CORP 9307230097 930723 HEARD ON THE STREET GURU TEMPLETON'S ADVICE ADD TO STOCKS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO WITH SO MANY WALL STREET PROS GRIPING ABOUT OVERPRICED SHARES AND PREDICTING A CORRECTION NOWADAYS ISN'T THE STOCK MARKET A DUBIOUS PLACE TO PUT HARDEARNED CASH NONSENSE RESPONDS JOHN TEMPLETON THE LEGENDARY STOCK PICKER AND MUTUALFUND MANAGER HE IS BOOSTING THE AMOUNT OF STOCK HE RECOMMENDS IN MOST INVESTORS' PORTFOLIOS TO 75 FROM 65 AT THE EXPENSE OF BONDS HE SAYS HIS REASONS ARE SIMPLE INFLATION IS LOW AND THE END IS IN SIGHT FOR THE LONG BULL MARKET IN BONDS CASH GIVES YOU ABSOLUTELY NO INFLATION PROTECTION BONDS GIVE YOU VERY LITTLE HE SAYS THE RISK IN CASH AND BONDS IS GREATER THAN USUAL AND THE RISK IN STOCKS IS NOT MR TEMPLETON WAS INTERVIEWED ON THE EVE OF THE TEMPLETON GROWTH FUND ANNUAL MEETING HERE A SPECTACLE COMPLETE WITH BAGPIPES PRAYERS OF THANKSGIVING AND THOUSANDS OF ADMIRING FANS SOME OF WHOM CAME BY THE BUSLOAD FROM ACROSS THE PROVINCE TO ATTEND THE MEETING THE TEMPLETON STYLE IS TO SEEK OUT DIRTCHEAP STOCKS THAT ARE OVERLOOKED BY THE MARKET BUT HAVE STRONG GROWTH PROSPECTS FINDING THEM IS NO EASY TASK BUT BARGAINS CAN BE HAD IN COUNTRIES WHERE STOCK MARKETS HAVE PLUMMETED 50 OR MORE FROM THEIR HIGHS MR TEMPLETON BELIEVES HIS OWN LIST OF COUNTRIES WITH UNUSUALLY LARGE AMOUNTS OF TEMPTINGLY PRICED STOCKS INCLUDES KOREA THAILAND INDONESIA BRAZIL PORTUGAL TURKEY AND A PERENNIAL FAVORITE NEW ZEALAND MOREOVER MR TEMPLETON DOESN'T BELIEVE THE US IS BEREFT OF GOOD BUYS TEMPLETON GROWTH FUND HAS 33 OF ITS ASSETS IN US STOCKS BECAUSE HE SOLD THE TEMPLETON MUTUALFUND EMPIRE TO ANOTHER FUND COMPANY FRANKLIN RESOURCES IN OCTOBER MR TEMPLETON IS LEERY OF SAYING TOO MUCH ABOUT SPECIFIC STOCKS BUT HE DOES SUGGEST THAT HE LIKES CERTAIN INDUSTRIES SUCH AS LIFE INSURANCE INCLUDING SOME US COMPANIES WHERE PRICES ARE UNUSUALLY DEPRESSED MARK HOLOWESKO DIRECTOR OF GLOBAL EQUITY RESEARCH FOR THE TEMPLETON MUTUAL FUNDS SAYS THAT WITHIN THE US HE IS PUTTING MONEY INTO CAPITALGOODS STOCKS WHICH HE SAYS HAVE UNDERPERFORMED CONSUMERPRODUCTS COMPANIES IN THE STOCK MARKET DURING THE PAST DECADE THESE INCLUDE NOT ONLY SOME OF THE CHEAPEST STOCKS BUT SOME OF WHAT HE BELIEVES ARE THE COUNTRY'S MOST COMPETITIVE INDUSTRIES INCLUDING ALUMINUM AND AUTO MAKING FOREST PRODUCTS HE ADDS ARE ANOTHER REALM WHERE STOCK PRICES WORLDWIDE HAVE FALLEN SUBSTANTIALLY AND MAY BE DUE FOR A REBOUND TEMPLETON FUNDS HAVE BEEN ADDING TO THEIR HOLDINGS OF GEORGIAPACIFIC AND INTERNATIONAL PAPER MR HOLOWESKO SAID MR TEMPLETON DISMISSES WORRIES ABOUT A STOCK MARKET COLLAPSE IN THE US ARGUING THAT THE INVESTMENT CLIMATE IS STILL FAR TOO PESSIMISTIC FOR SUCH AN EVENT TO OCCUR ALMOST WITHOUT EXCEPTION BEAR MARKETS START AFTER A PERIOD OF EXCESS OPTIMISM AND THE FACT THAT YOU DO NOT HAVE EXCESS OPTIMISM IN AMERICA RIGHT NOW IS A REASSURING SIGN HE SAYS IF THERE IS A DECLINE IN STOCK PRICES IT'S NOT LIKELY TO BECOME A MAJOR BEAR MARKET WHILE INVESTORS ARE GENERALLY MORE BULLISH THAN IN 1990 A PERIOD THAT MR TEMPLETON COMPARES WITH 1932 THEY HAVEN'T SEEN SUFFICIENT RETURN ON THEIR INVESTMENTS AS YET TO BECOME CARELESS AND TAKE TOO MANY RISKS HE SAYS BESIDES MR TEMPLETON BELIEVES THE FUNDAMENTALS FOR US STOCKS ARE SOUND HE IS CALLING FOR THE HIGHEST SALES VOLUMES AND DIVIDEND PAYOUTS IN HISTORY IN 1994 ALTHOUGH PROFITS HE ADDS ARE MORE UNCERTAIN THE TEMPLETON GROWTH FUND HAS TAKEN SOME OF ITS PROFITS IN THE HONG KONG MARKET REDUCING EXPOSURE TO 7 FROM 14 A YEAR AGO AND IS DIVERSIFYING INTO OTHER ASIAN MARKETS MR HOLOWESKO SAYS HONG KONG ISN'T THE ONLY PLACE TO BENEFIT FROM EXPECTED GROWTH IN CHINA AN EXAMPLE HE SAYS ARE KOREAN STEEL COMPANIES WHOSE EXPORTS TO CHINA HAVE RISEN 400 DURING THE PAST TWO YEARS AND MR TEMPLETON SAYS THAT THE OUTLOOK REMAINS BRIGHT FOR MANY HONG KONG COMPANIES WHILE PRICE/EARNINGS MULTIPLES AND DIVIDEND PAYOUTS OF MANY HONG KONG STOCKS ARE COMPARABLE TO THOSE IN THE US HE ADDS THEIR GROWTH PROSPECTS ARE MUCH GREATER SO MANY OF THE HONG KONG COMPANIES ARE BRANCHING OUT AND HAVING THEIR PRODUCTION DONE IN MAINLAND CHINA AT LOWER COSTS HE SAYS ONE MARKET TO WHICH MR TEMPLETON IS IN NO HURRY TO RETURN IS JAPAN ALTHOUGH THE STOCK MARKET THERE IS STILL ALMOST 50 BELOW ITS PEAK HE ASSERTS THAT MANY JAPANESE STOCKS ARE TREMENDOUSLY OVERVALUED AT 60 TIMES EARNINGS AND A 08 DIVIDEND YIELD WHEN HE BOUGHT HIS FIRST STOCKS IN JAPAN IN 1965 HE RECALLS THEY TRADED AT THREE TIMES EARNINGS AND THE ENTIRE MARKET WAS WORTH LESS THAN ONE US STOCK INTERNATIONAL BUSINESS MACHINES NOW HE SAYS IT'S A GREAT NATION THE CURRENCY IS LIKELY TO BE STRONGER THAN MOST THE BONDS ARE REASONABLE HOLDINGS BUT SHARES ARE JUST NOT BARGAINS THE CURE FOR JAPAN'S OVERPRICED MARKET MORE SECURITIES ANALYSTS MR TEMPLETON ARGUES FOR YEARS HE SAYS JAPANESE INVESTORS BOUGHT STOCKS WILDLY NEVER QUESTIONING THE PRICE UNTIL ABOUT FIVE YEARS AGO THERE WAS NO SENSE THAT YOU SHOULD APPRAISE OR VALUE A COMPANY HE SAYS HE BELIEVES THAT WILL CHANGE AS THE 500 JAPANESE NOW STUDYING TO BECOME CHARTERED FINANCIAL ANALYSTS BEGIN TO ANALYZE THE COMPANIES THEY COVER REALIZE HOW OVERVALUED THEY ARE IN RELATION TO STOCKS AVAILABLE IN OTHER COUNTRIES AND RECOMMEND JAPANESE INVESTORS SEEK OUT BARGAINS OUTSIDE THEIR OWN COUNTRY SO THERE'LL BE LESS JAPANESE CASH PUSHING JAPANESE SHARE PRICES UP HE SAYS WHILE MR TEMPLETON MISSED PART OF THE JAPANESE MARKET'S STRONGEST GROWTH BY LEAVING THE COUNTRY IN THE MID1980S HE SAID HE WAS GUIDED BY HIS PHILOSOPHY THAT IT'S TIME TO SELL WHEN YOU SPOT ANOTHER ASSET THAT YOU BELIEVE CAN GENERATE A 50 BETTER RETURN THAN SOMETHING YOU ALREADY OWN IT'S JUST COMMON SENSE MR TEMPLETON SAYS IF YOU'VE GOT WEALTH YOU'VE GOT TO HAVE IT IN SOMETHING REAL ESTATE GOLD STOCKS CASH THE ONLY WAY TO GET OUT IS TO GIVE IT AWAY OR SPEND IT MR TEMPLETON HIMSELF PLANS TO START GIVING AWAY A LOT MORE OF HIS MONEY IN YEARS TO COME HE NOW HANDS OUT ABOUT 5 MILLION ANNUALLY TO CHARITIES 75 EARMARKED FOR PROJECTS THAT FOCUS ON RELIGION AS A PROGRESSIVE FORCE IT HAS WORRIED ME FOR MOST OF MY LIFE HE SAYS THAT OUR KNOWLEDGE OF THE SOUL AND SPIRITUALITY HASN'T KEPT PACE WITH WORLDLY LORE 9307230096 930723 PEPPERAND SALT OF GETTING UP A LOT AND I DO NOT AGONIZE IS AEROBIC EXERCISE WHILE I LIKE WHITE THE BEST WHICH BOTH OF US DETEST 9307230095 930723 SYMANTEC POSTS QUARTERLY LOSS CUPERTINO CALIF SYMANTEC CORP SAID CHARGES FOR AN ACQUISITION AND RESTRUCTURING RESULTED IN A FISCAL FIRSTQUARTER LOSS OF 71 MILLION OR 27 CENTS A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 51 MILLION OR 18 CENTS A SHARE FOR THE PERIOD ENDED JULY 2 THE SOFTWARE CONCERN REPORTED A 9 REVENUE SLIDE TO 591 MILLION FROM 65 MILLION THE COMPANY TOOK A 74 MILLION CHARGE FOR THE ACQUISITION OF CONTACT SOFTWARE INTERNATIONAL INC AND A 47 MILLION CHARGE FOR RESTRUCTURING 9307230094 930723 BUSINESS BRIEF OLSTEN CORP SECONDPERIOD NET ROSE 44 DEMAND FOR TEMPS IS CITED OLSTEN CORP'S SECONDQUARTER PROFIT JUMPED 44 REFLECTING GREATER DEMAND FOR THE FIRM'S FORCE OF TEMPORARY WORKERS THE WESTBURY NY CONCERN SAID NET INCOME FOR THE QUARTER ENDED JULY 4 WAS 7 MILLION OR 26 CENTS A SHARE COMPARED WITH 48 MILLION OR 20 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 22 TO 2865 MILLION FROM 2336 MILLION OLSTEN SAID A CORPORATE RESTRUCTURING WITH AN INCREASED FOCUS ON SMALLER PERMANENT STAFFS COMBINED WITH GREATER USE OF TEMPORARY SERVICES HAS PROVED A BOON THE COMPANY WHICH RECENTLY BEEFED UP ITS PRESENCE IN THE MARKET FOR HOME HEALTH CARE WORKERS SAID PRETAX MARGINS AT THAT UNIT IMPROVED SUBSTANTIALLY IN THE SECOND QUARTER FRANK N LIGUORI CHAIRMAN AND CHIEF EXECUTIVE SAID HE WAS COMFORTABLE WITH ANALYSTS' EARNINGS ESTIMATES OF 115 A SHARE FOR 1993 150 A SHARE FOR 1994 AND 2 A SHARE IN 1995 9307230093 930723 BANKAMERICA BANKERS TRUST EARNINGS EXCEED FORECASTS FOR THE SECOND PERIOD BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL BANKAMERICA CORP AND BANKERS TRUST NEW YORK CORP REPORTED BETTERTHANEXPECTED SECONDQUARTER PROFIT INCREASES WHILE BANK OF BOSTON CORP EARNINGS ROSE SLIGHTLY IN LINE WITH ANALYST EXPECTATIONS BANKAMERICA'S RESULTS MORE THAN DOUBLED BUT THE YEAREARLIER RESULTS WERE UNUSUALLY LOW BECAUSE OF A ONETIME CHARGE AGAINST EARNINGS BANKERS TRUST'S EARNINGS ROSE 35 WHILE BANK OF BOSTON PROFIT EDGED UP 49 AND WOULD HAVE BEEN MUCH HIGHER WITHOUT TAX CREDITS IN THE YEAREARLIER QUARTER RESULTS AT BANKAMERICA WERE HELPED BY AN IMPROVEMENT IN CREDIT QUALITY AND FEWER CHARGES FOR PROBLEM LOANS BANKERS TRUST'S RESULTS STEMMED FROM STRONG GAINS IN FINANCIAL MARKETS ACTIVITIES IN PARTICULAR THE TRADING OF SECURITIES AND CURRENCIES BANK OF BOSTON SAID EARNINGS WERE FUELED BY ITS BUSINESS IN LATIN AMERICA STILL ON A GLOOMY DAY IN GENERAL ON WALL STREET BANKAMERICA'S COMMON STOCK CLOSED AT 44 DOWN 875 CENTS OR 19 WHILE BANK OF BOSTON COMMON EDGED DOWN 125 CENTS OR 05 TO 23625 BANKERS TRUST STOCK FELL 125 OR 16 TO 76 ON PROFITTAKING ITS SHARES HAD RISEN 7 IN THE PAST MONTH ALL QUOTES ARE FROM NEW YORK STOCK EXCHANGE COMPOSITE TRADING EXCLUDING LAST YEAR'S SPECIAL CHARGE PROFIT THIS YEAR ROSE 16 IN THE SECOND QUARTER AT THE NATION'S SECOND LARGEST BANKING COMPANY CREDIT QUALITY IMPROVED AND OPERATING MARGINS REMAINED STRONG DESPITE SLUGGISH REVENUE WALL STREET HAD EXPECTED THE BANK TO EARN 117 A SHARE THREE CENTS LESS THAN THE 120 THE BANK REPORTED NET INTEREST INCOME WAS VIRTUALLY UNCHANGED FROM THE FIRST QUARTER AT 185 BILLION DESPITE A SLIGHT INCREASE IN LOANS NONINTEREST INCOME FELL SLIGHTLY TO 106 BILLION ECONOMIC CONDITIONS MAY CONTINUE TO PLACE SOME LIMITS ON REVENUE GROWTH SAID CHAIRMAN RICHARD ROSENBERG OVERHEAD EXPENSES WERE STEADY AT 185 BILLION BUT THE PROVISION FOR LOAN LOSSES WAS 200 MILLION DOWN FROM 235 MILLION INDICATING THAT CREDIT CONCERNS ARE ABATING AS THEY ARE AT OTHER BIG CALIFORNIA BANKS IN ANOTHER SIGN OF IMPROVED CREDIT QUALITY PROBLEM ASSETS DROPPED 8 TO 58 BILLION FROM 63 BILLION IN THE FIRST QUARTER LIKE MOST BIG BANKS BANKERS TRUST HAD RECORD REVENUE FROM TRADING SECURITIES AND CURRENCIES THAT HELPED BEAT WALL STREET'S CONSENSUS OF 224 A SHARE IN PARTICULAR THE COMPANY SAID IT WAS WELL POSITIONED FOR THE CURRENCY DEVALUATIONS AND LOWER INTEREST RATES IN EUROPE TOTAL TRADING REVENUE WAS A RECORD 405 MILLION UP 70 MILLION FROM A YEAR EARLIER BAD LOANS FELL BY 15 AND THE PROVISION FOR LOAN LOSSES WAS A MERE 23 MILLION CORPORATE FINANCE FEES ROSE TO 102 MILLION THEIR HIGHEST LEVEL IN MORE THAN THREE YEARS BECAUSE OF STRONG REVENUE FROM SECURITIES UNDERWRITING AND LOANSYNDICATION BUSINESS BANKERS TRUST IS EDGING UP IN THE LEAGUE TABLES FOR THE SALE OF HIGHYIELD SECURITIES IT WASN'T JUST A HUGE TRADING QUARTER WITH NOTHING ELSE GOING ON THEY HAD BROAD SPREAD OF GOOD REVENUE SAID DIANE GLOSSMAN OF SALOMON BROTHERS AT THE SAME TIME TOTAL NONINTEREST EXPENSES ROSE TO 749 MILLION UP 27 FROM THE SECOND QUARTER OF 1992 THIS INCREASE WAS PRIMARILY FROM HIGHER BONUSES AND SALARIES BANKERS TRUST SAID BENEFITING FROM EXPANDED LENDING AND STRENGTH IN LATIN AMERICA BANK OF BOSTON SAID SECONDQUARTER PROFIT ROSE 32 FROM THE YEAREARLIER RESULTS BEFORE A TAX CREDIT TOTAL LOANS AND LEASES GREW 58 TO 2305 BILLION DRIVEN BY A 20 INCREASE IN INTERNATIONAL LOANS TO 546 BILLION THE PROVISION FOR CREDIT LOSSES IN THE QUARTER WAS 10 MILLION DOWN FROM 25 MILLION A YEAR EARLIER COSTS OF FORECLOSED REAL ESTATE FELL TO 108 MILLION FROM 269 MILLION THE YEAR BEFORE BANK OF BOSTON'S SALARY COSTS JUMPED 12 FROM THE YEAR BEFORE AS EMPLOYMENT EXPANDED HOWEVER THE BANK SAID THE INCREASE REFLECTED EXPANSION IN LATIN AMERICA AND IT SAID IT IS CUTTING BACK ON THE SIZE OF THE US WORK FORCE 9307230092 930723 BUSINESS BRIEF INTERTAN INC BANKS DEMAND REPAYMENT OF LOANS TO THE RETAILER INTERTAN INC BARRIE ONTARIO SAID ITS BANKERS DEMANDED REPAYMENT OF THEIR LOANS LEAVING THE COMPANY LITTLE TIME TO RESOLVE ITS FINANCIAL DIFFICULTIES IF IT IS TO CONTINUE NORMAL OPERATIONS ANALYSTS SAID THEY EXPECT THAT INTERTAN COULD BE FORCED TO FILE FOR CANADA'S EQUIVALENT OF CHAPTER 11 BANKRUPTCYLAW PROTECTION IF IT CAN'T RESTRUCTURE ITS OBLIGATIONS TO ITS BANKS AND TO TANDY CORP OF FORT WORTH TEXAS INTERTAN'S MAIN SUPPLIER OF RETAIL ELECTRONIC GOODS TANDY LAST WEEK STOPPED MAKING SHIPMENTS TO INTERTAN BECAUSE IT WAS IN DEFAULT ON 76 MILLION OF ACCOUNTS PAYABLE INTERTAN WHICH HAD TOTAL OBLIGATIONS OF 122 MILLION AT MARCH 31 SAID NEGOTIATIONS TO RESTRUCTURE ITS DEBT WERE CONTINUING WITH THE COMPANY'S BANKING SYNDICATE AND WITH TANDY INTERTAN OFFICIALS DIDN'T RESPOND TO A REQUEST FOR COMMENT A TANDY OFFICIAL SAID THE COMPANY WOULD MAKE NO COMMENT WHILE NEGOTIATIONS WITH INTERTAN WERE CONTINUING 9307230091 930723 OTC FOCUS BOND MARKET DROP TECHNOLOGY STOCKS DRAG INDEX DOWN 456 POINTS TO 69552 BY LARRY BAUMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED THE DAY NEAR THEIR SESSION LOW AS A LATEDAY DROP IN THE BOND MARKET DRAGGED STOCK PRICES DOWN THE NASDAQ COMPOSITE INDEX LOST 456 OR 065 TO 69552 ON VOLUME OF 207440000 SHARES COMPARED WITH WEDNESDAY'S VOLUME OF 211700000 DECLINERS OUTNUMBERED GAINERS 1489 TO 1211 THE NASDAQ 100 INDEX FELL 857 TO 69670 AND THE NASDAQ INDUSTRIAL INDEX AT 70776 WAS OFF 514 THE BOND MARKET WHICH HAD BEEN LITTLE CHANGED THROUGH YESTERDAY MORNING FELL DURING THE AFTERNOON IN RESPONSE TO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S CONGRESSIONAL TESTIMONY IN WHICH HE AGAIN EMPHASIZED THAT THE FED WAS FOCUSED MORE ON CONTAINING INFLATION THAN ON BOOSTING ECONOMIC ACTIVITY THE TREASURY LONG BOND WAS DOWN ABOUT THREEEIGHTHS WITH THE YIELD CLIMBING TO 665 THE DECLINE IN THE BOND MARKET AND A WEAKNESS IN THE TECHNOLOGY SECTOR WERE BEHIND THE LATEDAY COLLAPSE OF THE OTC MARKET SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE EVERYTHING FELL APART AT ONCE HE SAID MR ANTOLINI ALSO SAID THERE'S A GENERAL UNEASINESS AND PEOPLE ARE WORRIED ABOUT INTEREST RATES HE SAID THAT WHEN THERE IS WEAKNESS IN THE HIGHPROFILE TECHNOLOGY STOCKS THEY TEND TO DRAG THE CATS AND DOGS WITH THEM TECHNOLOGY STOCKS WERE AMONG THE MOST ACTIVE OTC ISSUES LOTUS DEVELOPMENT FELL 2 3/4 OR 69 TO 36 7/8 THE CAMBRIDGE MASS SOFTWARE COMPANY REPORTED SECONDQUARTER OPERATING PROFIT OF 35 CENTS A SHARE COMPARED WITH 34 CENTS A YEAR EARLIER BUT IN A CONFERENCE CALL WITH ANALYSTS LOTUS MADE CAUTIOUS COMMENTS ABOUT ITS THIRDQUARTER AND FOURTHQUARTER OUTLOOKS ANALYSTS SAID THE STOCK ALSO FELL ON PROFITTAKING NOVELL WAS UNCHANGED CLOSING THE DAY AT 23 3/4 INTEL AT 50 WAS DOWN 1 1/8 OR 22 SUN MICROSYSTEMS FELL 1 OR 35 TO 27 1/4 AND MICROSOFT RETREATED 1 3/8 OR 17 TO 77 5/8 MUCH OF THE WEAKNESS IN OTC STOCKS WAS BECAUSE OF PROFITTAKING SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS IT'S NORMAL TO GET A PULLBACK AND TO TAKE A PAUSE TO REFRESH HE SAID DESPITE THE DAY'S DECLINES AND THE WEAKNESS IN THE BOND MARKET IT STILL LOOKS LIKE A BULL MARKET THAT'S JUST TAKING SOME TIME OUT MR GOLDMAN SAID HE EXPECTS THE NASDAQ COMPOSITE INDEX WILL SEE AN ALLTIME HIGH IN A MATTER OF WEEKS MR GOLDMAN SAID HE IS ALSO BULLISH ON BONDS WHICH HAVE SEEN SOME WIDESPREAD PROFITTAKING PUSH YIELDS UP FROM THEIR RECENTLY RECORDED ALLTIME LOWS THE UNDERLYING INFLATION TRENDS LOOK PRETTY GOOD HE NOTED ADDING THAT WHILE BOND PRICES MAY FALL FURTHER OVER THE NEAR TERM THEY WON'T FALL ENOUGH TO HURT STOCKS APPLE COMPUTER WHICH IS FACING THE DEFECTION OF KEY ENGINEERS FROM ITS COMPUTER VIDEO GROUP ROSE 1/4 OR 1 TO 26 1/2 THE CUPERTINO CALIF COMPANY'S STOCK FELL 5/8 WEDNESDAY AMERICAN POWER CONVERSION WEST KINGSTON RI REPORTED SECONDQUARTER EARNINGS OF 23 CENTS A SHARE ABOVE THE YEAREARLIER 12 CENTS AND ANALYSTS' EXPECTATIONS OF 20 CENTS THE STOCK CLIMBED 3 1/2 OR 98 TO CLOSE THE SESSION AT 39 1/4 QUAD SYSTEMS HORSHAM PA GAINED 1 1/8 OR 15 TO 8 5/8 AFTER GRUNTAL & CO INITIATED COVERAGE OF THE STOCK WITH A RATING OF OUTPERFORM GEHL A WEST BEND WIS MANUFACTURER OF AGRICULTURE AND CONSTRUCTION EQUIPMENT REPORTED SECONDQUARTER EARNINGS OF 16 CENTS A SHARE COMPARED WITH A LOSS OF 13 CENTS THE STOCK CLIMBED 7/16 OR 95 TO 5 1/16 EXIDE ELECTRONICS GROUP SAID IT EXPECTS EARNINGS FOR ITS THIRD QUARTER WHICH ENDED JUNE 30 TO BE BETWEEN 36 CENTS AND 39 CENTS A SHARE AN INCREASE OF AT LEAST 60 FROM THE YEAREARLIER PERIOD WHEN THE RALEIGH NC COMPANY EARNED 21 CENTS THE STOCK ROSE 1 3/4 OR 97 TO 19 3/4 MCAFEE ASSOCIATES A SANTA CLARA CALIF SOFTWARE DEVELOPER SAID SECONDQUARTER NET INCOME ROSE TO 17 CENTS A SHARE FROM 15 CENTS A YEAR EARLIER MCAFEE JUMPED 1 OR 18 TO 6 1/2 OPTICAL DATA SYSTEMS WHICH INCREASED 1 3/8 OR 11 TO 13 5/8 REPORTED SECONDQUARTER EARNINGS OF 19 CENTS A SHARE UP FROM 16 CENTS A YEAR EARLIER THE RICHARDSON TEXAS COMPANY IS A DESIGNER AND MAKER OF COMPUTER NETWORKING PRODUCTS KOSS SURGED 1 1/4 OR NEARLY 11 TO 12 3/4 THE MILWAUKEE MAKER OF STEREO AND ELECTRONIC PRODUCTS REPORTED THAT ITS FOURTHQUARTER PROFIT ROSE TO 29 CENTS A SHARE FROM SEVEN CENTS A YEAR EARLIER 9307230090 930723 BEYOND BRAWN ARM WRESTLERS GRAPPLE WITH THE STEREOTYPES SPORT'S NATIONAL TITLE MATCH CARRIES PURSE AND SO DO SOME OF THE CONTESTANTS BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO IN A SMOKY BARROOM TWO COMPETITORS STARE AT EACH OTHER ACROSS A TABLE AND PREPARE TO LOCK HANDS THE REFEREE SIGNALS THEY BEGIN THE PULL SECONDS LATER A TALL BLONDE WEARING HER HAIR IN A PONYTAIL BECOMES ANOTHER NATIONAL FINALIST HUNGRY TO TAKE A SHOT AT THE CHAMP DOT JONES CONSIDERED THE BEST FEMALE ARM WRESTLER IN THE WORLD A 6FOOT4 240POUND SHOTPUTTER FORMER COUNSELOR AT A JUVENILE HALL AND ASPIRING ACTRESS MS JONES HOLDS AN INTIMIDATING RECORD IN A DECADE OF COMPETING SHE HAS LOST ONE TIME HER LONGEST MATCH LASTED ONLY 12 SECONDS SHE HAS BROKEN TWO ARMS BOTH OF THEM BELONGING TO OTHER PEOPLE TODAY THE 29YEAROLD MS JONES WILL DEFEND HER TITLE AGAINST EIGHT WOMEN CHALLENGING HER AT THE YUKON JACK NATIONAL ARM WRESTLING TOURNAMENT BEING HELD HERE THIRTYEIGHT MEN ALSO WILL COMPETE IN THREE SEPARATE DIVISIONS MEN AND WOMEN DO NOT WRESTLE EACH OTHER THE WINNER IN EACH CATEGORY WALKS AWAY WITH 2500 THE RESPECT OF COLLEAGUES AND MOST LIKELY SOME VERY SORE MUSCLES BUT FOR MS JONES AND OTHER FEMALE ARM WRESTLERS THESE COMPETITIONS PROVE A POINT FAR BEYOND BRAWN FOR YEARS THESE WOMEN HAVE FOUGHT STEREOTYPES ABOUT THEMSELVES AND THEIR SPORT WHICH SPORTS ILLUSTRATED RECENTLY CALLED THE LINGUA FRANCA OF HEMEN AND LIKE MANY OF HER SISTERSINARMS MS JONES HOPES HER PARTICIPATION IN MATCHES LIKE THIS WILL HELP ARM WRESTLINGFOR MEN AND WOMEN ALIKE WIN ENOUGH PUBLIC RESPECT TO ATTAIN OLYMPIC STATUS IT'S A SPORT LIKE ANY OTHER EVEN THOUGH IT'S NOT TAKEN VERY SERIOUSLY BY SOME SAYS MS JONES THE WORLD ARM WRESTLING FEDERATION BASED IN CALCUTTA INDIA WHERE THE SPORT IS HIGHLY POPULAR HAS PETITIONED THE INTERNATIONAL OLYMPIC COMMITTEE FOR CONSIDERATION WITH NO OFFICIAL RESPONSE SO FAR REPRESENTATIVES FROM THE US ASSOCIATION RECENTLY MET IN GENEVA WITH ENTHUSIASTS FROM 51 OTHER NATIONS TO PUSH AN OLYMPIC BID ADVOCATES CONTEND ARM WRESTLING MAY BE THE WORLD'S OLDEST SPORT FANS ATTRIBUTE THE POPULARITY OF ARM WRESTLING TO THE FACT THAT IT'S A SPORT ALMOST EVERYONE HAS TRIED AND ONE WHICH DOESN'T REQUIRE EXPENSIVE EQUIPMENT AND WHILE POWER IS IMPORTANT HUGE BICEPS AND A BULKY FRAME DON'T GUARANTEE A WIN A COMBINATION OF SPEED MENTAL CONCENTRATION AND STRONG TENDONS ARE CRUCIAL IN ARM WRESTLING SOME CHAMPS CALLED FINGER TECHNICIANS TRIUMPH OVER LARGER COMPETITORS WITH A KNOWLEDGE OF THE RIGHT MOVES IT PROBABLY STARTED IN THE CAVES SAYS BOB O'LEARY CHAIRMAN OF THE AMERICAN ARM WRESTLING ASSOCIATION WHICH HAS BEEN PROMOTING THE MODERN VERSION OF THE SPORT FOR 30 YEARS WE ARE GIVING IT A LOT OF DIGNITY HE SAYS WE'RE NOT BARROOM BRAWLERS STILL THE SPORT HAS ITS COLORFUL CHARACTERS AND TRADITIONS AMONG THOSE SCHEDULED TO COMPETE AT TODAY'S CONTEST IS ARMWRESTLING LEGEND CLEVE DEAN A GEORGIA PIG FARMER AND LUMBERMAN WHO RETIRED IN 1986 BUT HAS SLIMMED DOWN TO ABOUT 500 POUNDS TO REENTER THE CIRCUIT OFTEN COMPETITORS TRY TO RATTLE EACH OTHER WITH SUCH PLOYS AS EATING LIVE CRICKETS BEFORE A MATCH ANDY COBRA RHODES VOTED THIS YEAR'S ARM WRESTLER OF THE YEAR BY THE AMERICAN ARM WRESTLING ASSOCIATION IS KNOWN FOR SNAKING OUT HIS IMPRESSIVELY LONG TONGUE AT OPPONENTS MS JONES HOWEVER SAVES THE THEATRICS FOR HER ACTING CAREER FOR INSTANCE SHE SCORNS CHALLENGES FROM GUYS IN BARS CLAMORING FOR A MATCH ONCE THEY LEARN WHO SHE IS I DON'T WANT TO GET HURT OR TO BE RESPONSIBLE FOR HURTING SOMEBODY ELSE SHE SAYS BUT IT'S NOT THAT SHE IS SHY OF DEMONSTRATING HER PROWESS SHE HAS TAKEN ON MALE OPPONENTS TO PROMOTE ORGANIZED ARM WRESTLING SHE SAYS SHE HAS NEVER LOST MS JONES ATTENDS SEVERAL TOURNAMENTS A YEAR LENDING HER NAME AND STATURE ADDS LEGITIMACY AND ENCOURAGES NEWCOMERS TO THE SPORT SAYS A SPOKESMAN FOR THE YUKON JACK TOURNAMENT AND SPECTATORS DO BECOME CONTENDERS NORA HUFFMAN OF ABERDEEN WASH STARTED ARM WRESTLING 16 YEARS AGO WHEN THE TAVERN WHERE SHE WORKED HELD A TOURNAMENT AT THE TIME FEW WOMEN TRIED IT BUT IN THE LAST FEW YEARS PEOPLE ARE REALIZING IT'S A FEMALEINVOLVED SPORT SHE SAYS THE MATCHES AREN'T JUST AT DARK DINGY BARS WITH SMOKE ALL AROUND THEY'RE AT MALLS AND HEALTH CLUBS IT'S A VERY FAMILYORIENTED SPORT THE PEOPLE INVOLVED HAVE KEPT ME IN THE SPORT SAYS LORI COLE WHO HAS COMPETED SINCE 1977 IT SURE WASN'T THE PAY SHE ESTIMATES SHE HAS SPENT UP TO 10000 A YEAR TRAVELING TO TOURNAMENTS AROUND THE WORLD WHICH USUALLY OFFER ONLY SMALL CASH PRIZES THE MEN AND WOMEN WHO COMPETE ARE WONDERFUL THOUGH THE SORORITY OF ARM WRESTLERS IS QUITE FRIENDLY A COMMON SAYING IS THERE ARE NO FRIENDS AT THE TABLE SUE PATTON A BOARD MEMBER OF THE AMERICAN ARM WRESTLING ASSOCIATION SAYS THERE'S A CERTAIN AMOUNT OF EGO INVOLVED IF I TOOK YOUR ARM AND SMASHED IT TO THE TABLE I'D FEEL PRETTY GOOD ABOUT MYSELF WHILE THE NUMBER OF WOMEN TRYING THE SPORT IS INCREASING SOME STILL FEAR MOCKERY NOT TO MENTION INJURIES BUT ENTHUSIASTS SAY SUCH FEARS ARE OVERBLOWN I LIKE TO GO OUT AND ACT LIKE AN ANIMAL ONE DAY THEN PUT ON HIGH HEELS AND A DRESS THE NEXT SAYS ELAINE BLIK AN INSURANCE AGENT AND NATIONAL FINALIST FROM IDAHO YOU DON'T HAVE TO ACT LIKE A HEMAN TO ARM WRESTLE CAROLYN FISHER A TITLEHOLDER AND NATIONAL FINALIST FROM SAN DIEGO CALIF WAS IN BIBLE COLLEGE WHEN SHE STARTED ARM WRESTLING THE GUYS WERE USED TO FRAIL GIGGLY KIND OF DITSY WOMEN SHE SAYS THEY'D LINE UP AFTER CHAPEL AND I WOULD WRESTLE GUY AFTER GUY HARDLY ANYONE COULD BEAT ME BUT SHE SAYS IT FILTERED INTO THE WAY THEY TREATED ME MEN WOULDN'T OPEN DOORS FOR ME ANYMORE COURTESY LEFT YET SHE PURSUED HER LOVE OF ARM WRESTLING AND EVENTUALLY MET HER HUSBAND ON THE COMPETITIVE CIRCUIT THESE DAYS THE COUPLE TRAINS TOGETHER LIFTING WEIGHTS AND LOGGING TABLE TIME AND MRS FISHER SAYS SHE GETS AN EXTRA WORKOUT CARRYING AROUND THEIR 18MONTHOLD SON NEVERTHELESS ARM WRESTLING REMAINS KIND OF SEXIST CONCEDES DONNA CORLEY A CUSTOMERSERVICE REPRESENTATIVE FOR A COMPUTERSOFTWARE FIRM IN ALBUQUERQUE NM SHE HAS FOUND IT DIFFICULT TO GET MALE COWORKERS TO PRACTICE WITH HER A LOT OF THEM SAY NO WAY' IT'S LIKE THEIR EGO IS GOING TO GET HURT IF THEY GET BEAT ONCE SHE SAYS AND THOSE WHO DO WANT TO TRY TO RIP MY ARM OUT OF THE SOCKET STILL WHEN SHE QUALIFIED FOR THE NATIONAL FINALS HER COLLEAGUES WERE SO EXCITED THEY RAISED THE MONEY FOR HER TRIP TO SAN FRANCISCO BUT WHILE GAINS HAVE BEEN MADE WOMEN ARM WRESTLERS SAY THEY REGULARLY FAIL TO WIN THE RECOGNITION THEY FEEL THEY DESERVE MRS FISHER SAYS A RECENT REGIONAL MATCH HELD AT A TAVERN PITTED HER AGAINST ONE OF THE TOUGHEST WOMEN ON THE CIRCUIT YET MANY IN THE CROWD WERE OBLIVIOUS OR WORSE ANNOYED BY THE DISTRACTION WE WERE MAKING HISTORY SHE SAYS AND SOME PEOPLE IN THE BAR WERE ANGRY BECAUSE THEY WANTED TO WATCH A BALLGAME 9307230089 930723 MARKETING & MEDIA ADVERTISING J&J'S AGENCY SHUFFLE SWEETENS DDB NEEDHAM'S NEW YORK OFFICE BY KEVIN GOLDMAN WHEN DDB NEEDHAM SUDDENLY RESIGNED THE 17 MILLION BRISTOLMYERS SQUIBB ACCOUNT LAST MONTH IT RAISED QUESTIONS ON MADISON AVENUE ABOUT WHETHER ANDY BERLIN THE OUTSPOKEN PRESIDENT OF THE AGENCY'S NEW YORK OFFICE HAD ANOTHER AGENDA APPARENTLY HE DID COURTING A LARGER CLIENT JOHNSON & JOHNSON THE GIANT MAKER OF PHARMACEUTICAL AND PERSONAL HEALTHCARE PRODUCTS SAID YESTERDAY IT WILL REALIGN ASSIGNMENTS AMONG ITS ADVERTISING AGENCIES A CHANGE THAT WILL INCLUDE BRINGING ABOARD DDB NEEDHAM A UNIT OF OMNICOM GROUP JOHNSON & JOHNSON BASED IN NEW BRUNSWICK NJ IS THE LATEST PACKAGEDGOODS COMPANY TO REALIGN ITS STABLE OF AD AGENCIES AS BIG BRANDS BATTLE WITH CHEAPER GENERIC PRODUCTS FOR MARKET SHARE PROCTER & GAMBLE AND UNILEVER FOR EXAMPLE HAVE RECENTLY ASSIGNED BRANDS TO NEW AGENCIES LARGE COMPANIES ARE SHUFFLING AGENCIES AS THEY BROADEN DISTRIBUTION OF THEIR PRODUCTS WORLDWIDE AND INTRODUCE NEW PRODUCTS PETER N LARSON CHAIRMAN OF JOHNSON & JOHNSON'S CONSUMER SECTOR SAID THE RAPID CONVERGENCE OF MANY ASPECTS OF OUR BUSINESSES DICTATE THAT WE EFFICIENTLY STRUCTURE OUR CORE AGENCY RELATIONSHIPS SO THAT WE CAN MAXIMIZE THE CREATIVE RESOURCES DEVOTED TO OUR BRANDS A SPOKESMAN ADDED WE MOVED BUSINESS TO AGENCIES WE FEEL WE CAN GROW WITH THE JOHNSON & JOHNSON MOVE IS PARTICULARLY SWEET FOR NEEDHAM'S NEW YORK OFFICE WHICH MR BERLIN TOOK OVER IN APRIL 1992 BEFORE HIS ARRIVAL THE OFFICE HAD LOST THE WEIGHT WATCHERS ACCOUNT AND HADN'T WON ANY MAJOR NEW BUSINESS IN YEARS MR BERLIN A COFOUNDER OF OMNICOM'S SAN FRANCISCOBASED GOODBY BERLIN & SILVERSTEIN WAS PUT IN CHARGE TO SHORE UP CREATIVITY STOP CLIENT DEFECTIONS AND WIN NEW ACCOUNTS MR BERLIN DECLINED TO COMMENT YESTERDAY ON THE JOHNSON & JOHNSON ACCOUNT AS DID OTHER AD AGENCY EXECUTIVES INVOLVED OTHERS REMAINING IN THE JOHNSON & JOHNSON SPHERE INCLUDE SAATCHI & SAATCHI AND TWO UNITS OF INTERPUBLIC GROUP LINTASNEW YORK AND MCCANNERICKSON ALTHOUGH YOUNG & RUBICAM WILL CONTINUE TO BE RESPONSIBLE FOR MEDIA PLANNING AND BUYING FOR JOHNSON & JOHNSON THE CLOSELY HELD AGENCY LOST ALL ITS BRAND ACCOUNT BUSINESS INCLUDING CAREFREE PANTY SHIELDS SURE & NATURAL BANDAIDS AND SHOWER TO SHOWER WITH COMBINED DOMESTIC BILLINGS OF APPROXIMATELY 14 MILLION ALSO OUT AS A JOHNSON & JOHNSON AGENCY IS FOOTE CONE & BELDING'S LEBER KATZ PARTNERS WHICH HAD HANDLED THE 4 MILLION CLEAN & CLEAR LINE OF SKIN PRODUCTS THAT BRAND AND SHOWER TO SHOWER GO TO NEEDHAM CAREFREE GOES TO LINTAS SURE & NATURAL TO SAATCHI AND BANDAID TO MCCANN THE NEWS WAS CONVEYED TO AGENCIES YESTERDAY THROUGH INPERSON VISITS AND TELEPHONE CALLS BY JOHNSON & JOHNSON EXECUTIVES INCLUDING CHANDLER D SIMONDS COMPANY GROUP CHAIRMAN AND PETE TYRRELL VICE PRESIDENT OF CORPORATE ADVERTISING ONE VISIT APPARENTLY SPARKED A MINIPARTY LATE YESTERDAY AT NEEDHAM'S OFFICE ONE OF THE LAST AGENCIES ACTUALLY LOCATED ON MADISON AVENUE IN MIDTOWN MANHATTAN THE MOOD WAS QUITE DIFFERENT AT THE GENERAL MOTORS BUILDING A FEW BLOCKS NORTH AT THE OFFICES OF LEBER KATZ CHARLES TANEY PRESIDENT AND CHIEF OPERATING OFFICER OF LEBER KATZ TOLD THE STAFF IN A MEMO THAT THE JOHNSON & JOHNSON EXECUTIVES BEGAN THE MEETING BY SAYING THAT THEY ARE EXCEPTIONALLY PLEASED WITH OUR WORK UNFORTUNATELY THE MEETING DIDN'T END THERE MR TANEY WROTE THAT BECAUSE THE AGENCY'S WORLDWIDE NETWORK HAS SKINCARE CONFLICTS IN A NUMBER OF COUNTRIES PRIMARILY L'OREAL J&J PERCEIVES OUR NETWORK TO BE BLOCKED FOR AGGRESSIVE GROWTH WITH THEM IN SKIN CARE MR SIMONDS IN A ONEPAGE LETTER TO MR TANEY CALLED THE DECISION VERY DIFFICULT AS WE HAVE BEEN EXTREMELY PLEASED WITH THE AGENCY ON THIS ASSIGNMENT SEIKO SEIKO CORP OF AMERICA A UNIT OF HATTORI SEIKO CO OF TOKYO NARROWED THE REVIEW FOR ITS 10 MILLION SEIKO WATCH ACCOUNT THE CONTENDERS ARE AMMIRATI & PURIS OMNICOM GROUP'S DDB NEEDHAM INTERPUBLIC GROUP'S LOWE & PARTNERS EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER HAL RINEY & PARTNERS DENTSU'S DENTSU CORP OF AMERICA AND THE INCUMBENT SAATCHI & SAATCHI'S AC&R ADVERTISING OF NEW YORK PRODIGY PRODIGY SERVICES CO A COVENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO TAPPED WUNDERMAN CATO JOHNSON NEW YORK A UNIT OF YOUNG & RUBICAM FOR A LOYALTY PROGRAM AIMED AT REINFORCING THE HOMECOMPUTER SERVICE'S IMAGE AND PRODUCTS AMONG EXISTING CUSTOMERS BILLINGS ON THE NEW ACCOUNT COULDN'T BE DETERMINED 9307230088 930723 INTERNATIONAL MAJOR LOSES EC VOTE CALLS TEST OF SUPPORT BY KEVIN HELLIKER AND LAWRENCE INGRASSIA STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON PRIME MINISTER JOHN MAJOR CALLED FOR A VOTE OF CONFIDENCE AFTER LOSING A KEY VOTE IN THE HOUSE OF COMMONS OVER THE MAASTRICHT TREATY ON EUROPEAN UNITY IN A DRAMATIC AND POSSIBLY RISKY MOVE MR MAJOR STAKED HIS FUTURE ON A VOTE SCHEDULED FOR TODAY THAT IF THE GOVERNMENT LOSES WOULD RESULT IN A SNAP ELECTION THAT LIKELY WOULD END 14 YEARS OF CONSERVATIVE PARTY RULE HOWEVER MR MAJOR IS BETTING THAT REBEL TORY MEMBERS OF PARLIAMENT WHO OPPOSE MAASTRICHT AND VOTED AGAINST THE GOVERNMENT LAST NIGHT WILL RETURN TO THE FOLD AND SUPPORT HIM IN THE VOTE OF CONFIDENCE THAT'S BECAUSE THE PARTY'S POPULARITY HAS PLUMMETED IN A LONG RECESSION THAT ONLY NOW APPEARS TO BE ENDING AND THE REBELS ALONG WITH THE GOVERNMENT WANT TO AVOID AN ELECTION AT ALL COSTS MOST COMMENTATORS PREDICTED LAST NIGHT THAT MR MAJOR IS LIKELY TO WIN TODAY'S VOTE WHICH WOULD BE ATTACHED TO A MOTION APPROVING MAASTRICHT ON TERMS HE DEEMS ACCEPTABLE WE MUST RESOLVE THIS ISSUE AND IT CANNOT BE ALLOWED TO FESTER ANY LONGER HE DECLARED REFERRING TO THE TORTUOUS ROUTE BRITAIN HAS TAKEN TOWARD RATIFYING THE TREATY THE SURPRISE TURN OF EVENTS CAME AFTER THE GOVERNMENT FIRST DEFEATED A LABOR PARTY AMENDMENT REQUIRING BRITAIN TO ADHERE TO THE TREATY'S SOCALLED SOCIAL CHAPTER WHICH MR MAJOR OPPOSES ON THE GROUNDS THAT IT WOULD INCREASE UNEMPLOYMENT AND INHIBIT ECONOMIC GROWTH THE VOTE WAS 318 TO 317 WITH THE SPEAKER OF THE HOUSE BREAKING A TIE BUT THEN IN A SECOND VOTE TO APPROVE A MOTION TO EFFECTIVELY RATIFY THE TREATY WITHOUT THE SOCIAL CHAPTER THE GOVERNMENT WAS DEFEATED BY A 324TO316 VOTE AS SOME TORIES DEFECTED IN HOPES OF CREATING A STALEMATE THAT WOULD PREVENT BRITAIN FROM RATIFYING THE TREATY CALLED EUROSCEPTICS THE TORY REBELS ARGUE THAT BRITISH PARTICIPATION IN A UNIFIED EUROPE WOULD BE ECONOMICALLY DISADVANTAGEOUS TO THE UNITED KINGDOM AND THAT THE TREATY CEDES TOO MUCH POWER TO THE EC BUREAUCRACY THE OUTCOME WAS AN EMBARRASSMENT FOR THE GOVERNMENT NOT ONLY BECAUSE MAASTRICHT HAS BEEN A CORNERSTONE OF MR MAJOR'S AGENDA BUT BECAUSE THE GOVERNMENT'S DEFEAT WAS AIDED BY MEMBERS OF HIS OWN CONSERVATIVE PARTY IF NOT FOR THE LACK OF A CLEAR ALTERNATIVE TO MR MAJOR OBSERVERS SAY THE PARTY WOULD LIKELY MOVE TO REPLACE HIM AS PRIME MINISTER MR MAJOR HAS SAID HE WILL NEVER APPROVE A MAASTRICHT TREATY THAT BINDS BRITAIN TO THE SOCIAL CHAPTER WHICH SEEKS TO PROTECT WORKERS THROUGH MEASURES SUCH AS MINIMUMWAGE LAWS AND MAXIMUM 48HOUR WORK WEEKS EXCLUDING OVERTIME MR MAJOR FOUND IT SO OBJECTIONABLE THAT HE EARLIER NEGOTIATED AN OPTOUT CLAUSE WITH THE EUROPEAN COMMUNITY AS A CONDITION FOR BRITAIN'S RATIFYING THE TREATY THE ONE CERTAIN IMPACT OF THE SOCIAL CHAPTER IS THAT JOBS WILL BE LOST IS IT WORTH IT HE SAID DURING LAST NIGHT'S DEBATE BECAUSE MAASTRICHT CAN'T BE RATIFIED UNTIL A MOTION EITHER SUPPORTING OR REJECTING THE SOCIAL CHAPTER HAS BEEN APPROVED HE PROPOSED THE VOTE OF CONFIDENCE AS A WAY OF FORCING THE ISSUE IF MR MAJOR PREVAILS AND WINS TODAY'S VOTE THE ONLY REMAINING OBSTACLE TO RATIFICATION WOULD BE A LEGAL CHALLENGE SCHEDULED TO BE HEARD BEGINNING NEXT WEEK OF THE 12 EUROPEAN COMMUNITY MEMBERS ONLY BRITAIN AND GERMANY HAVEN'T RATIFIED THE TREATY IN GERMANY RATIFICATION IS PENDING A CONSTITUTIONAL COURT'S RULING ON THE LEGALITY OF MAASTRICHT IF MR MAJOR LOSES HOWEVER MAASTRICHT WILL BE PUT ON HOLD PUTTING FURTHER CLOUDS OVER THE TREATY WHILE AN ELECTION CAMPAIGN BEGINS THE TORIES NOW HOLD A SLIM MAJORITY OF 18 IN THE COMMONS WHILE MR MAJOR LED HIS PARTY TO A SURPRISE ELECTION VICTORY 15 MONTHS AGO HE MIGHT BE DUMPED AS LEADER IF HE LOSES THE VOTE OF CONFIDENCE AND FEW EXPECT THE TORIES TO WIN THEIR FIFTH CONSECUTIVE NATIONAL ELECTION A STRING THAT BEGAN WITH MARGARET THATCHER'S 1979 VICTORY 9307230087 930723 REVIEW & OUTLOOK EDITORIAL AID ASYLUM POOR PRINCE SIHANOUK THE US GOVERNMENT TOLD HIM THAT IF HE USHERED THE KHMER ROUGE INTO THE CAMBODIAN GOVERNMENT UNCLE SAM WASN'T GOING TO PAY FOR IT SACRE BLEU I AM MORE AND MORE ANGERED BY THESE INCESSANT WARNINGS FROM THE AMERICANS WHICH HAVE MADE ME EVEN MORE ILL THAN I WAS IN THE PAST PROTESTED THE PEEVED PRINCE THE US HAS MADE IT CLEAR THAT IT WAS RELUCTANT TO SEE THE KHMER ROUGE FORM ANY PART OF A CAMBODIAN GOVERNMENT VOTED IN THROUGH ELECTIONS THEY BOYCOTTED UNDER THE RUBRIC OF NATIONAL RECONCILIATION HOWEVER PRINCE SIHANOUK THOUGHT OUT LOUD ABOUT HAVING THE MASS MURDERERS GET A MINISTRY OR TWO WHILE CAMBODIA'S INTERIM GOVERNMENT AGREED TO CONSIDER AN ADVISORY ROLE TALKS ON CONDITIONS FOR THE KHMER ROUGE'S INVOLVEMENT WERE TO BEGIN IN SEPTEMBER THESE TALKS HAVE NOW BEEN SCUTTLED WE'RE SORRY THAT THE PRINCE IS FEELING UNWELL BUT WE THINK HIS OUTRAGE IS ILLPLACED PRINCE SIHANOUK AND THE CAMBODIAN LEADERSHIP ARE FREE TO CUT WHATEVER DEALS THEY WANT WITH WHOMEVER THEY WANT BUT THE REST OF THE WORLD DOESN'T HAVE TO BANKROLL THEIR DECISIONS THIS DISTINCTION BETWEEN WHAT GOVERNMENTS CAN DO AND WHAT OTHER GOVERNMENTS HAVE TO PAY FOR IS WORTH THINKING ABOUT IN APRIL 1992 INDONESIA TOLD THE NETHERLANDS TO STOP SENDING AID IF IT WAS GOING TO KEEP BEATING THE HUMANRIGHTS DRUM WE DON'T ACCEPT AID WITH POLITICAL STRINGS ATTACHED SNIFFED INDONESIAN FOREIGN MINISTER ALI ALATAS SIMILARLY WHEN 49 ASIAN NATIONS MET IN BANGKOK IN APRIL TO FORM A HUMANRIGHTS CONSENSUS THEY READILY AGREED THAT POLITICAL ISSUES AND HUMAN RIGHTS SHOULD NOT BE CONDITIONS FOR AID BUT THE TIME IS PAST WHEN RICHER COUNTRIES WOULD SHOVEL MONEY AT POORER ONES WITHOUT CONDITIONS OR ACCOUNTABILITY DURING THE 1960S AND 1970S DEVELOPED NATIONS THREW BILLIONS OF DOLLARS AT BAD GOVERNMENTS MUCH AID MONEY WAS USED TO SUBSIDIZE BAD PROJECTS THAT HURT THOSE THEY WERE SUPPOSED TO HELP AIDDRIVEN ECONOMIC POLICY WAS DISASTROUS AS GOVERNMENTS MISUSED OTHER PEOPLE'S MONEY TO SUBSIDIZE FOOD PRICES TO URBAN DWELLERS AND THUS DISABLE AGRICULTURE TO BUILD INDUSTRIAL PLANTS THAT ROTTED BEFORE COMPLETION AND TO PAY BLOATED BUREAUCRACIES THAT FED OFF WHAT ELSE FOREIGN AID IT TOOK TOO LONG BUT MANY COUNTRIES INCLUDING THE US AND JAPAN HAVE RECOGNIZED THAT IT MAKES NO SENSE TO RAIN DOWN CASH ON A GOVERNMENT THAT IS GOING TO USE THAT MONEY TO DO THINGS OF WHICH THE DONOR DISAPPROVES FOREIGN AID IS JUST THAT AID IT ISN'T AN ENTITLEMENT NO ONE HAS A RIGHT TO RECEIVE FOREIGN AID ANY MORE THAN DONOR COUNTRIES HAVE AN ABSOLUTE RESPONSIBILITY TO DISBURSE IT IN THE CASE OF CAMBODIA THE GOVERNMENT CAN CERTAINLY LET ONE OF HISTORY'S WORST GENOCIDAL REGIMES INCH BACK INTO POWER BUT IT HAS TO ACCEPT THE CONSEQUENCES OF THAT DECISION PRINCE SIHANOUK COMPLAINED THAT THE INCESSANT WARNINGS FROM THE US WERE DRIVING HIM TOWARD THE MENTAL ASYLUM WE WISH THE PRINCE PEACE OF MIND BUT NOTE THAT TO EXPECT THE US OR ANY OTHER COUNTRY TO FINANCE POLICIES OF WHICH IT TOTALLY DISAPPROVES WELL THAT'S WHAT WE CALL CRAZY 9307230086 930723 NOTABLE & QUOTABLE FROM AN ARTICLE BY GLENN GARVIN ON NATIONAL PUBLIC RADIO TITLED HOW DO I HATE NPR LET ME COUNT THE WAYS THAT APPEARED IN THE MAY 28 NEW YORK PRESS A WEEKLY NEWSPAPER IT'S NOT THAT THE NETWORK'S EDITORIAL BRAIN TRUST MEETS EACH MORNING TO PLOT THE DAY'S CAMPAIGN TO RID AMERICA OF REPUBLICAN TAINT IT'S THAT THE NEWSROOM IS COMPOSED ALMOST ENTIRELY OF LIKEMINDED PEOPLE WHO SHARE ONE ANOTHER'S MAJOR PHILOSOPHICAL PRECEPTS THEIR THINKING IS APPARENT BOTH IN WHAT THEY REPORT AND THEIR APPROACH TO IT THEY BELIEVE THAT GOVERNMENT IS THE FUNDAMENTAL AGENT OF CHANGE THAT GOVERNMENT CAN AND SHOULD SOLVE MOST PROBLEMS THEY BELIEVE MOST OF THOSE SOLUTIONS INVOLVE SPENDING LARGE SUMS OF MONEY THEY BELIEVE THAT TAXES ARE NOT ONLY AN APPROPRIATE WAY OF RAISING MONEY BUT AN IMPORTANT SOCIAL RESPONSIBILITY THEY BELIEVE THAT ALTHOUGH INDIVIDUALS CANNOT ALWAYS BE TRUSTED TO MAKE CORRECT CHOICES BUREAUCRATS USUALLY CAN IN SHORT NPR REPORTERS ARE THE KINDS OF PEOPLE WHO VOTED FOR MICHAEL DUKAKIS AND BILL CLINTON NOT AS THE LESSER EVILS BUT ENTHUSIASTICALLY IN THE FIRM BELIEF THAT WHAT THE WORLD NEEDS IS BETTER SOCIAL ENGINEERING 9307230085 930723 AMOCO TEXACO POST RISE IN NET FOR 2ND QUARTER SUN AND OCCIDENTAL REPORT SHARP EARNINGS GAINS BUT HESS RECORDS A LOSS BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL FOUR PETROLEUM COMPANIES INCLUDING TWO OF THE BIGGEST TEXACO INC AND AMOCO CORP POSTED STRONGER EARNINGS FOR THE SECOND QUARTER A FIFTH COMPANY AMERADA HESS CORP REPORTED A HEFTY LOSS BECAUSE IT WROTE DOWN THE VALUE OF PETROLEUM ASSETS IN THE WAKE OF RECENT DECLINES IN OIL PRICES THE TREND FOR MOST OF THE INDUSTRY REFLECTS IMPROVED PROFIT MARGINS IN DOMESTIC NATURALGAS MARKETS AND IN THE INCREASINGLY COMPETITIVE OIL REFINING OPERATIONS THE EARNINGS ALSO SHOW THE IMPACT OF INDUSTRYWIDE COSTCUTTING MEASURES TEXACO THE FOURTHLARGEST US OIL COMPANY EXCEEDED ANALYSTS' EXPECTATIONS BY POSTING SECONDQUARTER NET INCOME MORE THAN DOUBLE ITS TOTAL A YEAR EARLIER AMOCO THE FIFTHLARGEST COMPANY ALSO TOPPED WALL STREET FORECASTS THERE ARE A NUMBER OF BRIGHT SPOTS FOR THEM IN THE QUARTER ESPECIALLY WITH NATURALGAS PROFIT MARGINS AND VOLUMES SIGNIFICANTLY UP SAID GENE NOWAK AN OIL ANALYST AT DEAN WITTER REYNOLDS INC BUT THERE ARE TROUBLE SPOTS AS WELL IN SOME COMPANIES' RESULTS INCLUDING DEPRESSED EARNINGS FROM CHEMICAL OPERATIONS AND PRESSURE ON GASOLINE MARKETING PROFIT MARGINS IN EUROPE DUE TO WEAKNESS IN SOME ECONOMIES THERE ANALYSTS SAID THE OUTLOOK FOR CHEMICAL OPERATIONS REMAINS BLEAK BECAUSE OF LOW MARGINS IN CERTAIN COMMODITY PRODUCT LINES ANALYSTS QUESTION WHETHER THE INDUSTRY WILL BE ABLE TO POST LARGE YEARONYEAR PROFIT INCREASES IN THE SECOND HALF AFTER THE RECENT DECLINE IN OIL PRICES ALSO SOME SAID THAT THEY SEE NO QUICK END IN SIGHT TO THE CHEMICAL INDUSTRY SLUMP TEXACO'S NET MORE THAN DOUBLED THE WHITE PLAINS NY COMPANY BENEFITED FROM NATURALGAS PRICES THAT SURGED 32 FROM THE FIRSTHALF AVERAGE IN 1992 TO 213 A THOUSAND CUBIC FEET IN THE 1993 FIRST HALF THE NATURALGAS PRICE INCREASE MORE THAN OFFSET SAGGING CRUDEOIL PRICES IMPROVED REFINING EFFICIENCIES AND COSTCUTTING MEASURES ALSO HELPED BOOST PROFIT MARGINS IN PARTICULAR TEXACO CITED BETTER OPERATING EFFICIENCIES IN ITS LATIN AMERICAN OIL REFINERIES WORLDWIDE CAPITAL AND EXPLORATION EXPENSES FELL 16 TO 646 MILLION OPERATING PROFIT FROM INTERNATIONAL EXPLORATION AND PRODUCTION ROSE 78 TO 82 MILLION BUT PETROCHEMICAL OPERATIONS POSTED AN OPERATING LOSS OF 7 MILLION COMPARED WITH A PROFIT OF 2 MILLION A YEAR EARLIER TEXACO'S SECONDQUARTER REVENUE FELL 35 TO 907 BILLION AMOCO SWUNG TO A PROFIT FROM A RESTATED LOSS OF 499 MILLION A YEAR EARLIER EXCLUDING 805 MILLION IN CHARGES AMOCO'S PROFIT IN THE 1992 QUARTER WAS 216 MILLION OR 43 CENTS A SHARE AMOCO BASED IN CHICAGO IS THE NATION'S LARGEST NATURALGAS PRODUCER AND THE COMPANY SAID IT BOOSTED US PRODUCTION VOLUME 11 TO 25 BILLION CUBIC FEET A DAY IN THE FIRST HALF TAKING ADVANTAGE OF RISING PRICES FOR THE FUEL OPERATING PROFIT FROM DOMESTIC EXPLORATION AND PRODUCTION OF PETROLEUM NEARLY QUADRUPLED TO 230 MILLION PARTLY REFLECTING THE COMPANY'S COSTCUTTING MEASURES THE ECONOMIZING MOVES ALSO CONTRIBUTED TO AMOCO'S OPERATING INCOME OF 262 MILLION FROM REFINING AND RELATED MARKETING OPERATIONS MORE THAN FOUR TIMES THE TOTAL A YEAR EARLIER AMOCO'S OVERALL REVENUE DROPPED 2 TO 723 BILLION FROM 737 BILLION SUN CO EMERGING FROM A RESTRUCTURING BEGUN IN LATE 1991 POSTED SECONDQUARTER NET INCOME OF 70 MILLION COMPARED WITH 6 MILLION A YEAR EARLIER SUN'S RESULTS FOR THE LATEST QUARTER INCLUDE A GAIN OF 19 MILLION OR 18 CENTS A SHARE FROM THE SALE OF STOCK IN A SUBSIDIARY AND A GAIN OF 9 MILLION OR NINE CENTS A SHARE FROM THE SALE OF CERTAIN FOREIGN OIL AND GAS PROPERTIES EXCLUDING THOSE ITEMS SUN'S OPERATING PROFIT ROSE SEVEN TIMES TO 42 MILLION OR 39 CENTS A SHARE THE PHILADELPHIA COMPANY ALSO CITED IMPROVED PROFIT MARGINS IN ITS RETAIL GASOLINE SALES WHICH MORE THAN DOUBLED OPERATING PROFIT IN THE SEGMENT TO 13 MILLIONSUN'S OVERALL REVENUE FELL 6 TO 244 BILLION OCCIDENTAL PETROLEUM CORP'S NET INCOME ROSE 50 THE LOS ANGELES COMPANY SAID ITS OIL AND GAS DIVISION'S OPERATING PROFIT ROSE 65 LARGELY BECAUSE OF HIGHER NATURALGAS PRICES UNLIKE MOST OF ITS COMPETITORS OCCIDENTAL REPORTED IMPROVED OPERATING PROFIT FROM ITS CHEMICAL BUSINESS A 71 INCREASE FROM A YEAR EARLIER THE SEGMENT'S EARNINGS ROSE MAINLY BECAUSE OF LOWER MANUFACTURING AND ADMINISTRATIVE COSTS OCCIDENTAL'S REVENUE WAS FLAT AT 201 BILLION AMERADA HESS SAID AN 802 MILLION WRITEDOWN OF PETROLEUM ASSETS THAT REFLECTS THE RECENT SHARP DECLINE IN SELLING PRICES CAUSED A SECONDQUARTER NET LOSS COMPARED WITH NET INCOME OF 44 MILLION HESS'S REVENUE FELL 5 TO 140 BILLION FROM 148 BILLION 9307230084 930723 CLINTON'S NEW MATH BY TOM BETHELL ON APRIL 8 THE OFFICE OF MANAGEMENT AND BUDGET RELEASED THE 1994 FEDERAL BUDGET PROMINENTLY DISPLAYED ON PAGE TWO OF THAT THICK VOLUME WAS A TABLE GIVING BUDGET TOTALS REFLECTING THE PRESIDENT'S PROPOSALS THAT IS THE TABLE INCORPORATED PRESIDENT CLINTON'S 500 BILLION DEFICIT REDUCTION PROPOSAL ON APRIL 9 MAJOR NEWSPAPERS PUBLISHED STORIES ON THE BUDGET BUT ALL FAILED TO PUBLISH THE OUTLAY AND REVENUE TOTALS SHOWN BELOW SINCE THEN I HAVE NOT SEEN THESE FIGURES PUBLISHED ANYWHERE IT SEEMS TO HAVE BECOME A CONVENTION AMONG JOURNALISTS THAT ONLY THE DEFICIT OR DIFFERENCE SHOULD BE PUBLISHED THE DIFFERENCE BETWEEN WHAT AND WHAT WE ARE ALMOST NEVER TOLD THE FAILURE TO PUBLISH THESE TOTALS DISGUISES THE EXTENT TO WHICH OUTLAYS CONTINUE TO SOAR AN UNCRITICAL WASHINGTON PRESS CORPS HAS PERMITTED MR CLINTON TO TALK OF SPENDING CUTS WITHOUT EXPOSING THE ABSURDITY OF HIS CLAIM IN THE TABLE ABOVE ARE THE OMB FIGURES AS ONE CAN SEE SPENDING TOTALS INCREASE FROM 1468 BILLION TO 1781 BILLION IN FIVE YEARS DESPITE REAL REDUCTIONS IN MILITARY SPENDING ONLY IN FEDERAL BUDGETING IS AN INCREASE OF MORE THAN 300 BILLION CALLED A CUT VERY FEW PEOPLE CAN BE AWARE OF THESE FIGURES EVEN IF THEY HAVE BEEN PUBLISHED IN OBSCURE CORNERS THEY HAVE NOT BEEN GIVEN THE HEADLINE TREATMENT THEY DESERVE YET THEY EXPOSE AS ABSURD MR CLINTON'S CLAIM THAT HIS DEFICIT REDUCTION IS MADE UP OF EQUAL PARTS TAX INCREASES AND SPENDING CUTS IN WASHINGTON PARLANCE THE PHRASE SPENDING CUTS MEANS MERELY REDUCTIONS IN PLANNED INCREASES JOHN COGAN DEPUTY DIRECTOR OF OMB IN 198889 SAYS THAT THE WAYS AND MEANS AND FINANCE COMMITTEES DELIBERATELY LEGISLATE FUTURE SPENDING INCREASES THAT THEY HAVE NO INTENTION OF GRANTING SO THAT THEY CAN LATER REDUCE THEM AND SAY THEY HAVE CUT THE BUDGET' WHY IS THERE NO EXPOSURE OF THIS BELTWAY DECEPTION WHEN GEORGE BUSH SIGNED HIS 500 BILLION DEFICIT REDUCTION DEAL IN 1990 OMB NUMBERS CLAIMED THAT SPENDING WOULD BE RESTRAINED IN THE OUTYEARS HERE ARE THOSE 1990 NUMBERS OUTLAYS IN 1993 1381 BILLION IN 1994 1343 BILLION IN 1995 1385 BILLION BY COMPARING THEM WITH MR CLINTON'S TOTALS FOR THE SAME YEARS WE CAN SEE THAT SPENDING IS NOW ABOUT 160 BILLION HIGHER THAN MR BUSH CLAIMED IT WOULD BE FINALLY A QUIZ QUESTION FOR ANYONE WHO CAN KEEP A SENSE OF HUMOR WHILE STARING AT THESE APPALLING NUMBERS IN WHAT YEAR ARE BUDGET OUTLAYS IN BILLIONS OF DOLLARS PROJECTED TO EXCEED THE NUMBER OF THE YEAR ANSWER 2000 IN THAT YEAR TOTAL SPENDING IS PROJECTED TO BE 2055 BILLION BUT DON'T BE SURPRISED IF IT HAPPENS BEFORE THEN MR BETHELL A VISITING FELLOW AT THE HOOVER INSTITUTION IS WASHINGTON EDITOR OF THE AMERICAN SPECTATOR 9307230083 930723 LEISURE & ARTS ON SPORTS POPUP PRACTICE MADE EASY BY FREDERICK C KLEIN FRANK QUILICI PLAYED FOR OR MANAGED THE MINNESOTA TWINS OF BASEBALL'S AMERICAN LEAGUE FOR THE BETTER PART OF 10 YEARS BUT NEVER MASTERED ONE FACET OF THE GAME I WASN'T MUCH GOOD WITH A FUNGO BAT HE CONFESSES WHEN I WAS MANAGING AND IT WAS TIME FOR INFIELD PRACTICE I'D HAVE ONE OF MY COACHES HIT THE BALL AROUND IN ALL MY YEARS WITH THE TWINS WE NEVER HAD A COACH WHO COULD HIT FUNGO POPUPS CONSISTENTLY HE CONTINUES THE ONLY GUYS WHO COULD DO IT WERE JIM KAAT AND JIM PERRY AND THEY WERE PITCHERS SO WE WOULDN'T LET THEM 'CAUSE THEY MIGHT HAVE HURT THEMSELVES SO WE COULDN'T GIVE OUR INFIELDERS MUCH POPUP PRACTICE THIS LACK NAGGED QUILICI AFTER HE TURNED IN HIS TWINKIES KNICKERS FOR GOOD IN 1975 ALL THE MORE SO BECAUSE HE REASONED CORRECTLY OF COURSE THAT IF ADEPT FUNGO HITTERS WERE RARE IN THE MAJOR LEAGUES THE SITUATION IN THE GAME'S VAST LOWER REGIONS WHERE PROPER FIELDING PRACTICE IS ESPECIALLY IMPORTANT PROBABLY WAS MUCH WORSE IN RETIREMENT HE APPLIED HIMSELF TO FINDING A REMEDY THE RESULT IS THE DEVICE PICTURED HEREWITH IT'S CALLED THE ACCUBAT AND IT'S MADE BY ST PAUL MINNBASED RAMMER CORP WHICH CONSISTS OF THE 54YEAROLD QUILICI AND SEVERAL PARTNER/BUDDIES ITS MAIN ADVANTAGE OVER THE TRADITIONAL FUNGO BAT IS OBVIOUS A MUCH LARGER HITTING SURFACE IF YOU CAN SEE THE BALL AND SWING AN ARM EITHER ARM YOU CAN HOLD FIELDING PRACTICE FOR YOUR CHILD OR HIS OR HER TEAM INSIDE OF A HALFHOUR QUILICI ASSERTS THE ACCUBAT WILL DO FOR FIELDING WHAT THE PITCHING MACHINE DID FOR BATTING NOW EVEN A QUICK GLANCE AT THE ACCUBAT MIGHT CAUSE ONE TO WONDER WHAT'S THE BIG DEAL IT LOOKS LIKE WHAT IT IS WHICH IS AN OVERGROWN RACQUETBALL RACKET BUT LOOKS CAN BE DECEIVING PEOPLE HAVE BEEN TRYING FOR YEARS TO MODIFY TENNIS OR RACQUETBALL RACKETS TO HIT BASEBALLS BUT ALL THEY'VE WOUND UP WITH ARE BATTERED FRAMES AND BROKEN STRINGS QUILICI SAYS WE'RE THE FIRST TO REALLY MAKE IT WORK BASEBALL FANS OF A CERTAIN AGE WON'T FIND IT SURPRISING THAT QUILICI WAS ABLE TO ACHIEVE WHAT FOR BASEBALL AMOUNTS TO A TECHNOLOGICAL BREAKTHROUGH THE CHICAGO NATIVE WHO BY HIS OWN ACCOUNT COULDN'T RUN THROW OR HIT MUCH NONETHELESS PLAYED IN THE BIGS FOR PARTS OF SIX SEASONS AS A 26YEAROLD ROOKIE HE WAS THE TWINS' STARTING SECOND BASEMAN THROUGHOUT THE 1965 WORLD SERIES WHEN HIS PLAYING DAYS ENDED WITH THE 1970 CAMPAIGN HE WAS MADE A TWINS COACH MIDWAY THROUGH 1972 AT AGE 33 HE BECAME ONE OF THE YOUNGEST MEN EVER TO MANAGE A MAJOR LEAGUE CLUB I'D SPENT SO MUCH TIME TELLING TWINS THENOWNER CALVIN GRIFFITH WHAT WAS WRONG WITH HIS TEAM THAT HE LET ME RUN IT HE REMARKS OF THE PROMOTION AFTER LOSING THAT JOB IN 1975 HE BECAME A TWINS BROADCASTER LASTING UNTIL 1982 QUILICI'S OFFFIELD PERFORMANCE WAS EQUALLY DISTINCTIVE AS A 22YEAROLD HE TURNED DOWN A 30000 BONUS OFFER FROM THE NEW YORK YANKEES SO HE COULD COMPLETE HIS DEGREE IN EDUCATION FROM WESTERN MICHIGAN UNIVERSITY AND ALTHOUGH HE WOUND UP SIGNING WITH THE WASHINGTON SENATORS THE NEXT YEAR FOR ONLY 15000 UP FRONT HE SAYS HE DOESN'T REGRET THE DECISION IN WILSON NC IN 1964 STRUGGLING TO SUPPORT A YOUNG FAMILY ON A MINOR LEAGUER'S SUBSISTENCE WAGES HE TOOK OUT AN INSURANCEBROKERAGE LICENSE I WAS A CHICAGO GUY TRYING TO SELL INSURANCE TO SOUTHERNERS HE RECALLS OF THAT LONGAGO PARTTIME JOB NOTHING I'VE DONE SINCE HAS BEEN AS HARD QUILICI TODAY IS AN EXECUTIVE WITH WESTERN DIVERSIFIED INSURANCE CO PART OF THE JOHN ALDEN FINANCIAL GROUP BUT BASEBALL REMAINS A NEARPREOCCUPATION HE'S ESPECIALLY CONCERNED WITH WHAT HE SEES AS YOUNGSTERS' ABANDONMENT OF THE GAME IN FAVOR OF BASKETBALL WHEN I WAS GROWING UP THERE WERE ALWAYS ENOUGH OF US KIDS AROUND TO PLAY BALL BUT YOU DON'T SEEM TO HAVE THAT IN A LOT OF PLACES THESE DAYS HE SAYS BASKETBALL'S ATTRACTIVE PARTLY BECAUSE YOU CAN PLAY IT WITH A SMALL NUMBER AND YOU CAN HAVE FUN JUST SHOOTING ALONE ONE KID CAN'T DO MUCH WITH A BASEBALL AND ABOUT ALL TWO KIDS CAN DO OR A KID AND HIS DAD IS PLAY CATCH THUS CAME HIS INTEREST IN DEVELOPING AN EASYTOUSE FUNGO HITTER REGULAR FUNGO HITTING'S QUITE COMPLEX QUILICI NOTES YOU HAVE TO HOLD THE BAT IN ONE HAND TOSS UP THE BALL WITH THE OTHER AND REGRIP THE BAT WITH BOTH HANDS BEFORE SWINGING AND EVEN IF YOU HIT THE BALL IT'S TOUGH TO HIT IT ACCURATELY YOU SWING ACCUBAT WITH ONE HAND IN AN UNDERHAND MOTION SO COORDINATION'S NO PROBLEM AND THE BIG HITTING AREA MAKES THE BALL TOUGH TO MISS WITH VERY LITTLE PRACTICE YOU CAN HIT GROUNDERS ANYWHERE OR FLY BALLS OF UP TO 200 FEET YOU CAN EVEN HIT POPUPS THE TRICK WAS GETTING THE THING TO WEATHER THE POUNDING OF A FIVEOUNCE BASEBALL OR 6 1/2OUNCE SOFTBALL A TENNIS BALL WEIGHS ABOUT TWO OUNCES IT TOOK ABOUT EIGHT YEARS OF ERRORFILLED TRIALS BEFORE THE FINISHED PRODUCT WAS PATENTED AND MADE READY FOR SALE IN 1992 IT HAS A GRAPHITECOMPOSITION FRAME THAT VARIES IN WIDTH FROM 1 1/4 TO 1 1/2 INCHES AND WOVEN NYLON STRINGS HELD TO THE FRAME BY 1/2INCHWIDE RUBBER CLIPS IT WEIGHS 22 OUNCES YOU CAN SMACK BALLS AROUND FOR UP TO TWO YEARS BEFORE REPLACEMENT STRINGS MUST BE PURCHASED QUILICI SAYS ACCUBAT SELLS FOR 75 WHICH AIN'T A LOT WHEN ONE NOTES THAT THE PRICE TAG FOR THE ALUMINUM BASEBALL BATS MANY KIDS' TEAMS USE CAN TOP 200 SOME 2000 ACCUBATS HAVE BEEN SOLD AND WHILE THE SKILLPROUD BIG LEAGUERS HAVE GENERALLY ESCHEWED IT JIMMY REESE THE 91YEAROLD CALIFORNIA ANGELS COACH WHO'S LONG BEEN THE WILLIAM TELL OF FUNGO HITTING ONCE STRUCK A FLAGPOLE WITH A BALL FROM 100 FEET ON A BET IT'S BEEN A HIT WITH KIDS' TEAM HIGHSCHOOL AND COLLEGE COACHES RAMMER CORP'S MAIL INDICATES THAT PARENTS INCLUDING MOMS LIKE IT TOO THE BEST LETTER WE GOT WAS FROM A GUY WHO SAID HE WAS SUCH A NERD HE'D NEVER BEEN ABLE TO PLAY BASEBALL WITH HIS CHILDREN BEFORE ACCUBAT SAYS QUILICI THAT ALONE MADE THE WHOLE PROJECT WORTHWHILE FOR ME 9307230082 930723 REVIEW & OUTLOOK EDITORIAL ASIDES THUNDER OUT OF CHINA ASKED IN A RECENT MEETING TO COMMENT ON THE CONTRIBUTIONS OF MAO TSETUNG THOUGHT TO CHINA'S DEVELOPMENT PRESIDENT JIANG ZEMIN RESPONDED THAT CHAIRMAN MAO'S MASS LINE REMAINED ONE OF CHINA'S KEY SPIRITUAL POSSESSIONS INDEED MAO TSETUNG THOUGHT IS THE POWERFUL IDEOLOGICAL RUDDER DIRECTING CHINA AND ALL CHINESE PEOPLE TELL THAT TO THE MILLIONAIRES OF WUHAN REPORTS FROM THE CENTRAL CHINESE CITY SAY THE WEALTHY THERE MANY NO DOUBT CHINESE COMMUNIST PARTY CADRES CONSIDER A MERCEDESBENZ AUTOMOBILE A CELLULAR TELEPHONE A GOLD ROLEX OR RADO WATCH A WESTERN SUIT AND A BODYGUARD AS THE FIVE ESSENTIALS OF LIFE WE WONDER HOW MANY MAO BUTTONS IT TAKES TO SWAP FOR A BENZ SO MUCH FOR THE STEERING STRENGTH OF THE IDEOLOGICAL RUDDER WHEN THE MASS LINE HEADS STRAIGHT FOR THE JEWELRY STORE 9307230081 930723 BUSINESS BRIEF WESTCOAST ENERGY INC COMPANY REQUESTS TOLL RISE OF 18 FOR GAS TRANSMISSION CANADA'S NATIONAL ENERGY BOARD SAID WESTCOAST ENERGY INC HAS APPLIED TO RAISE TOLLS ON ITS NATURALGAS TRANSMISSION SERVICES BY AN AVERAGE OF 18 WESTCOAST OFFICIALS DECLINED TO ELABORATE THE ENERGY REGULATORY AGENCY SAID THE VANCOUVER BRITISH COLUMBIABASED PIPELINE AND GASDISTRIBUTION COMPANY WANTS THE INCREASE TO TAKE EFFECT JAN 1 IT SAID WESTCOAST ASKED FOR ITS 1994 COSTOFSERVICE CALCULATION TO BE BASED ON A 1275 RATE OF RETURN ON COMMON EQUITY UP FROM ITS 1993 NEBAPPROVED RATE OF 1225 WESTCOAST DIDN'T REQUEST A CHANGE IN THE 35 COMMONEQUITY COMPONENT THE BOARD HAD APPROVED FOR 1993 THE NEB SAID 9307230080 930723 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 311 60 TO 89 DAYS 314 90 TO 119 DAYS 318 120 TO 149 DAYS 320 150 TO 179 DAYS 327 180 TO 229 DAYS 337 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 317 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 289 SIX MONTHS 317 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 308 ONE MONTH 315 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 307 60 DAYS 312 90 DAYS 312 120 DAYS 314 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 850 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 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 315 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 710 60 DAYS 717 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 706 60 DAYS 716 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 271 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9307230079 930723 THE AMERICAS ARGENTINA'S SUPPLYSIDE BLUEPRINT FOR GROWTH BY DOMINGO F CAVALLO ECONOMIC ANALYSIS IN ARGENTINA IS UNDERGOING SIGNIFICANT CHANGE ECONOMISTS HAVE SHIFTED FROM PLACING EXCESSIVE EMPHASIS ON SHORTTERM AGGREGATE DEMAND CONSIDERATIONS TO FOCUSING MORE ON TRENDS IN MEDIUMTERM PRODUCTIVITY WHILE CONTINUING TO BE MINDFUL OF DEVELOPMENTS IN FISCAL POLICY AND THE BALANCE OF PAYMENTS ECONOMISTS HAVE LEARNED THAT THE TRUE ECONOMIC REVOLUTION CAN BE FOUND ON THE SUPPLY SIDE SINCE APRIL 1991 A CONSIDERABLE NUMBER OF INSTITUTIONAL FISCAL AND MONETARY REFORMS HAVE EMBODIED THIS FOCUS ON THE SUPPLY SIDE FROM THE MONETARY STANDPOINT THE CENTRAL BANK NOW OPERATES A CURRENCY BOARD THE EXCHANGE RATE IS PEGGED TO THE US DOLLAR BY LAW AND THE MONETARY BASE IS FULLY BACKED BY RESERVES IN KEEPING WITH THIS DOLLAR STANDARD MONETARY POLICY PLAYS A PASSIVE ROLE THE CENTRAL BANK CAN ONLY ADJUST THE MONETARY BASE IN ORDER TO BUY OR SELL INTERNATIONAL RESERVES AND THE POSSIBILITY OF ISSUING CURRENCY TO FINANCE GOVERNMENT EXPENDITURES OR TO EXTEND CREDIT TO THE PRIVATE SECTOR HAS BEEN ELIMINATED FOR ITS PART FISCAL POLICY HAS SUCCEEDED IN CONSOLIDATING STABILITY THROUGH A PERMANENT BUDGET SURPLUS INCREASING THE COLLECTION OF SOME OF THE MORE NEUTRAL TAXES SUCH AS THE VALUE ADDED TAX HAS MADE IT POSSIBLE TO ELIMINATE A WIDE ARRAY OF TAXES THAT DISTORT INCENTIVES NOT ONLY HAS CONGRESS RETURNED TO THE SOUND PRACTICE OF GIVING TIMELY APPROVAL TO THE NATIONAL BUDGET BUT IT HAS INCORPORATED A SIMPLE PRINCIPLE WHICH HAD FOR ALL INTENTS AND PURPOSES BEEN FORGOTTEN BALANCING REVENUE WITH EXPENDITURE NOW LAWS CALLING FOR INCREASED EXPENDITURE CANNOT BE PASSED WITHOUT CONCURRENTLY NEGOTIATING THE RESOURCES TO FINANCE THEM AS FOR STRUCTURAL AND INSTITUTIONAL REFORMS CONSIDERABLE PROGRESS HAS BEEN MADE IN A VERY SHORT PERIOD OF TIME IN RESTRUCTURING AND PRIVATIZING STATE ENTERPRISES DEREGULATING THE MANUFACTURING AND SERVICE SECTORS LIBERALIZING TRADE AND DEREGULATING CAPITAL MARKETS THE REFORM PROGRAM IS NOW MOVING ON TO THE PRIVATIZATION OF SOCIAL SECURITY AND TO LABOR MARKET REFORM ARGENTINA'S ECONOMIC HISTORY BEARS THE MARKS OF SO MUCH ECONOMIC FAILURE AND FRUSTRATION THAT A THOROUGH EVALUATION OF THE DEVELOPMENTS OCCURRING IN FISCAL EXTERNAL AND RELATIVE PRICE MATTERS IS ALWAYS ENLIGHTENING HOWEVER THESE FACTORS SHOULD BE EVALUATED WITH OUR EMPHASIS ON UNABASHEDLY INCREASING AGGREGATE SUPPLY BY REVITALIZING THE ENTREPRENEURIAL VIGOR OF ALL SECTORS OF THE ECONOMY RELATIVE PRICES FOR THE PAST TWO YEARS WHOLESALE INFLATION HAS NOT BEEN HIGHER IN ARGENTINA THAN IN THE US AND HAS SHOWN POTENTIAL TO REACH NEGATIVE LEVELS IE DEFLATION DURING SOME MONTHS THE GROWTH RATE IN CONSUMER PRICES HAS ALSO DECLINED ALTHOUGH NOT YET TO THE LEVELS IN DEVELOPED COUNTRIES FOR THE FIRST TIME IN 20 YEARS HOWEVER A SINGLEDIGIT FIGURE FOR THE CUMULATIVE ANNUAL PRICE INCREASE SEEMS TO BE A REALITY CAPITAL INFLOWS WHILE THE GOVERNMENT CONTINUES TO PAY SPECIAL ATTENTION TO ENSURING FOREIGN EXCHANGE CONVERTIBILITY IN ITS PUREST FORM THE INFLOW OF CAPITAL WILL CONTINUE TO DETERMINE THE CURRENT ACCOUNT BALANCE IN TURN THE INFLOW OF CAPITAL IS DETERMINED BY A DOMESTIC POLICIES AND THE RESULTS THEY OBTAIN AND B THE INTERNATIONAL ECONOMIC SITUATION TRADE POLICY ARGENTINA NOW HAS ONE OF THE MOST OPEN ECONOMIES IN THE WORLD BETWEEN 1989 AND 1992 WE DRAMATICALLY REDUCED THE LEVEL AND VARIANCE OF TARIFFS AND ELIMINATED NONTARIFF BARRIERS TO IMPORTS AND TAXES ON TRADITIONAL EXPORTS THIS PROCESS OF LIBERALIZATION WAS UNDERTAKEN ON A UNILATERAL BASIS IE ARGENTINA DID NOT BASE ITS POLICY ON THE RECIPROCITY THAT COULD HAVE BEEN OBTAINED BY WAITING TO NEGOTIATE WITHIN THE URUGUAY ROUND OR THROUGH BILATERAL NEGOTIATIONS HOWEVER TRADE POLICY NEEDS TO BE PRAGMATIC RATHER THAN DOGMATIC OUR GOVERNMENT WILL NOT HESITATE TO RETALIATE IN CASES OF DUMPING OR PERVASIVE EXPORT SUBSIDIZATION ON THE PART OF OTHER COUNTRIES THE QUOTAS RECENTLY APPLIED TO IMPORTS OF A FEW PAPER PRODUCTS ARE IN FULL COMPLIANCE WITH GATT RULES AND REFLECT OUR STRONG DETERMINATION TO DEFEND OUR INDUSTRY FROM FOREIGN COMPETITION IN OTHER WORDS THESE RECENT ACTIONS SHOULD NOT BE INTERPRETED AS A DEPARTURE FROM PREVIOUS TRADE POLICIES EXTERNAL SECTOR CONTRARY TO WHAT SOME OBSERVERS ASSUME THE ARGENTINE EXTERNAL SECTOR IS VERY STRONG THE CURRENT ACCOUNT DEFICIT OF THE BALANCE OF PAYMENTS REPRESENTS 28 OF GDP COMPARED WITH 32 IN CHILE AND 71 IN MEXICO OUR EXTERNAL DEBT IS EQUIVALENT TO 25 OF GROSS DOMESTIC PRODUCT ALSO A SMALLER RATIO THAN IN CHILE OR MEXICO THE ONLY INDICATOR THAT IS LESS FAVORABLE THAN IN THOSE COUNTRIES IS THAT FOR EXPORTS THE DIFFERENCE BETWEEN ARGENTINA AND CHILE AND MEXICO IS THAT THE LATTER TWO COUNTRIES BEGAN THEIR STRUCTURAL REFORMS MUCH EARLIER AND ARE ALREADY SEEING THE FRUITS OF THEIR DECISIONS TO INVEST IN NEW EXPORT BUSINESS WHICH IS SOMETHING JUST BEGINNING IN ARGENTINA IF ARGENTINA STICKS TO ITS STRUCTURAL REFORMS AND CONSOLIDATES ITS GREAT COMPETITIVE LEAP FORWARD PARTICULARLY IN AN INTERNATIONAL ENVIRONMENT CHARACTERIZED BY MILD INFLATION RELATIVELY LOW GROWTH AND LIQUID FINANCIAL MARKETS EXTERNAL FINANCING WILL NOT CONSTITUTE A CONSTRAINT TO THE NATION'S GROWTH PROSPECTS ON THE CONTRARY IT WILL REMAIN A HEALTHY COMPONENT OF OUR GROWTH FORMULA DOMESTIC VERSUS EXTERNAL SAVING THE RATE OF NATIONAL SAVING GROSS NATIONAL PRODUCT LESS CONSUMPTION HAD FALLEN TO A LITTLE BELOW 18 IN 1990 FROM 23 IN 1980 WHILE THE RATE OF INVESTMENT DECLINED TO 14 FROM 25 THE SIZABLE 1990 TRADE SURPLUS DID NOT REFLECT A HEALTHY ECONOMY BUT RATHER AN ECONOMY WHERE CAPITAL FLIGHT WAS PERVASIVE AND EXPORT SURPLUSES FOUND NO PLACE ON THE DOMESTIC MARKET ALTHOUGH THE ARGENTINE EXTERNAL SECTOR ACCOUNTS ARE VERY MANAGEABLE THE GOVERNMENT DOES NOT WISH THE CURRENT ACCOUNT DEFICIT TO INCREASE IN SUCH A MANNER THAT COULD JEOPARDIZE THE COUNTRY'S SOLVENCY AND CREDIBILITY BUT WE DO NOT BELIEVE THAT THE WAY TO GO ABOUT THIS IS BY PLACING LIMITS ON THE INFLOW OF CAPITAL OR BY STERILIZING THE CURRENT ACCOUNT DEFICIT'S MONETARY EFFECT THROUGH STRICT MONETARY POLICY IN OTHER WORDS WE DO NOT BELIEVE IN ADDRESSING THE CURRENT ACCOUNT DEFICIT BY MEANS THAT WOULD SET BACK OUR FORMULA FOR SUSTAINED GROWTH THIS FOLLOWS OUR DETERMINATION TO INCREASE THE SUPPLY SIDE OF THE ECONOMIC EQUATION IN THIS CASE THE SUPPLY OF SAVINGS WE BELIEVE THAT THE BEST REMEDY AGAINST EXTERNAL SAVING REPLACING DOMESTIC SAVING IS PRECISELY TO INCREASE THE LATTER THIS IS THE MAJOR CHALLENGE FACED BY THE ARGENTINE ECONOMY TODAY MR CAVALLO IS ARGENTINA'S MINISTER OF ECONOMY AND PUBLIC WORKS AND SERVICES 9307230078 930723 PERELLA TO QUIT INVESTMENT FIRM HE COFOUNDED RESIGNATION AS CHAIRMAN OF WASSERSTEIN PERELLA ENDS LONG RELATIONSHIP BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOSEPH R PERELLA CHAIRMAN OF WASSERSTEIN PERELLA & CO AND ONE OF WALL STREET'S BESTKNOWN DEAL MAKERS SAID HE WILL QUIT THE FIRM HE COFOUNDED FIVE YEARS AGO THE DEPARTURE OF MR PERELLA SET FOR SEPT 1 HAD BEEN EXPECTED BY SOME WALL STREET EXECUTIVES HIS RESIGNATION ENDS A 16YEAR BUSINESS RELATIONSHIP WITH BRUCE WASSERSTEIN DATING TO THE DAYS WHEN THE TWO WERE INVESTMENT BANKERS AT FIRST BOSTON CORP MR PERELLA WHO MAINTAINS A LOWER PROFILE THAN MR WASSERSTEIN HAS BEEN INFLUENTIAL IN NURTURING CLOSE RELATIONSHIPS WITH MORE THAN A DOZEN CHIEF EXECUTIVE OFFICERS OF THE FIRM'S MAJOR CLIENTS MR PERELLA'S DEPARTURE COMES AS WASSERSTEIN PERELLA GRAPPLES WITH A STRATEGIC SHIFT ON WALL STREET WHEN THE FIRM WAS FOUNDED IN 1988 THE MERGER BUSINESS WAS SIZZLING IN RECENT YEARS MERGER ACTIVITY HAS COOLED SIGNIFICANTLY AND THE FIRM HAS TRIED TO BRANCH OUT INTO SECURITIES UNDERWRITING CURRENCY TRADING DERIVATIVES TRADING AND OTHER AREAS EVEN IN THE MERGER ARENA WASSERSTEIN PERELLA HAS SPUTTERED IN RECENT YEARS AFTER A STRONG START THE FIRM'S RANKING IN VOLUME OF MERGER DEALS COMPLETED WORLDWIDE SANK TO NO 20 LAST YEAR FROM NO 3 IN 1989 ACCORDING TO SECURITIES DATA CO A NEWARK NJ RESEARCH FIRM IN A STATEMENT MR PERELLA 51 YEARS OLD SAID HE FELT THE NEED TO SEEK NEW CHALLENGES ADDING THAT HE IS READY TO PURSUE NEW BUSINESS VENTURES SOME INVESTMENT BANKERS HAVE SPECULATED THAT MR PERELLA MIGHT REJOIN THE CS FIRST BOSTON GROUP INC UNIT WHOSE PRESIDENT ARCHIBALD COX JR RESIGNED LAST WEEK MR PERELLA WASN'T AVAILABLE TO COMMENT DESPITE THE MOVE WASSERSTEIN PERELLA HAS NO PLANS TO CHANGE ITS NAME PEOPLE FAMILIAR WITH THE MATTER SAID THE 45YEAROLD MR WASSERSTEIN CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL SUCCEED MR PERELLA AS THE FIRM'S CHAIRMAN CHARLES G WARD III AND GARY W PARR WILL BECOME COPRESIDENTS THE FIRM SAID WILLIAM J BEGLEY PRESIDENT OF GRANTCHESTER SECURITIES INC THE FIRM'S PROFITABLE JUNKBOND TRADING BUSINESS WILL ASSUME THE POSITION OF DEPUTY CHAIRMAN MESSRS WARD PARR AND BEGLEY WILL JOIN MR WASSERSTEIN AS MEMBERS OF THE FIRM'S EXECUTIVE COMMITTEE WHICH SETS POLICY MR PERELLA HAS TALKED OF QUITTING ON SEVERAL OCCASIONS SINCE 1989 ASSOCIATES SAY BUT IN RECENT MONTHS HE HAS BECOME INCREASINGLY FRUSTRATED BY DEMANDS FOR MORE PAY AND RESOURCES FROM SEVERAL ASSOCIATES PEOPLE FAMILIAR WITH THE MATTER SAID MR WASSERSTEIN COULDN'T BE REACHED TO COMMENT BUT HE SAID IN A STATEMENT THAT WE HAVE BEEN FORTUNATE IN OUR LONG AND FRUITFUL RELATIONSHIP TOGETHER MR WASSERSTEIN ADDED THAT THE INCREASED ROLES OF MESSRS WARD PARR AND BEGLEY REFLECT THE EVOLUTION OF THE FIRM AND THEIR INCREASINGLY IMPORTANT ROLES IN THE FIRM'S SUCCESS 9307230077 930723 TECHNOLOGY BRIEF IDEC PHARMACEUTICALS CORP PRODUCT TO CAUSE CHARGE OF 3 MILLION IN 2ND PERIOD IDEC PHARMACEUTICALS CORP SAN DIEGO SAID IT WILL TAKE A 3 MILLION CHARGE IN THE SECOND QUARTER TO PHASE OUT A LYMPHOMA TREATMENT IT WAS DEVELOPING WILLIAM H RASTETTER PRESIDENT AND CHIEF EXECUTIVE OF THE PHARMACEUTICAL DEVELOPER SAID IDEC BEGAN TO NOTICE VARIATIONS IN PRODUCT STABILITY POTENCY AND YIELD IN ITS DEVELOPMENT OF SPECIFID A TREATMENT FOR BCELL LYMPHOMA RESOLVING THE PROBLEMS WOULD HAVE REQUIRED SUBSTANTIAL ADDITIONAL INVESTMENT HE ADDED IDEC SAID IT WOULD REALLOCATE RESOURCES FROM SPECIFID TO OTHER PRODUCTS UNDER DEVELOPMENT INCLUDING ITS PANB SINGLEANTIBODY TREATMENT FOR BCELL LYMPHOMA AND AN ANTIBODY TREATMENT FOR MALIGNANT MELANOMA THE COMPANY EXPECTS TO REPORT SECONDQUARTER RESULTS IN TWO WEEKS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY IDEC SHARES CLOSED AT 425 UNCHANGED 9307230076 930723 CREDIT MARKETS COCACOLA JOINS DISNEY AT THE VERY LONG END WITH THE SALE OF 150 MILLION OF 100YEAR BONDS BY THOMAS D LAURICELLA AND CONSTANCE MITCHELL STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK COCACOLA CO BECAME THE SECOND COMPANY THIS WEEK TO STRETCH THE MEANING OF LONGTERM BOND BY SELLING 150 MILLION OF BONDS THAT MATURE 100 YEARS FROM NOW WALT DISNEY CO SOLD 300 MILLION OF 100YEAR BONDS ON TUESDAY BECOMING THE FIRST COMPANY TO ISSUE A BOND WITH SUCH A LONG MATURITY SINCE 1954 COCACOLA'S OFFERING WHICH WAS UNDERWRITTEN BY MERRILL LYNCH & CO WAS PRICED TO YIELD 7455 JUST 080 PERCENTAGE POINT HIGHER THAN THE YIELD ON 30YEAR TREASURY BONDS FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN COMMENTED ON THE 100YEAR BOND OFFERINGS DURING THE CONTINUATION OF HIS SEMIANNUAL REPORT TO CONGRESS YESTERDAY SAYING THEY ARE ONE OF THE MORE IMPORTANT INDICATORS THAT THE LONGERTERM INFLATION EXPECTATIONS WHICH HAVE SO BEDEVILED OUR ECONOMY AND FINANCIAL MARKETS SEEM TO BE RECEDING AND THAT'S A VERY GOOD SIGN BUT TREASURY BOND TRADERS AND INVESTORS IGNORED THOSE COMMENTS AND INSTEAD FOCUSED ON EARLIER REMARKS BY THE FED CHAIRMAN SUGGESTING THAT HIGHER INTEREST RATES ARE INEVITABLE OVER THE COURSE OF HIS TWODAY SOCALLED HUMPHREYHAWKINS TESTIMONY THE FED CHAIRMAN MADE IT CLEAR THAT SHOULD INFLATION PRESSURES REEMERGE THE FED WOULD QUICKLY TIGHTEN MONETARY POLICY WHICH HAS THE EFFECT OF RAISING INTEREST RATES HE MADE IT PRETTY CLEAR THAT NOT ONLY DID THE FED KEEP A BIAS TO TIGHTEN BUT THAT THEY ARE CLOSER TO TIGHTENING THAN THE MARKET HAD THOUGHT SAID DANIEL J CALLAHAN HEAD TRADER AT PAINEWEBBER INC THE COMMENTS DREW SELLERS INTO THE MARKET CAUSING BOND PRICES TO SLIDE SHORTTERM TREASURYS SUFFERED THE BRUNT OF THE SELLING YESTERDAY WITH YIELDS ON TWOYEAR NOTES RISING TO 418 FROM 414 WEDNESDAY THE YIELD ON TWOYEAR NOTES IS NOW ABOUT 020 PERCENTAGE POINT HIGHER THAN A WEEK AGO THE BOND MARKET'S BELLWETHER SECURITY THE 7125 30YEAR TREASURY BOND ENDED AT A PRICE OF 106 1/32 DOWN 12/32 FROM 106 13/32 ON WEDNESDAY THE DECLINE TRANSLATES INTO A LOSS OF 375 FOR A BOND WITH A 1000 FACE AMOUNT THE ISSUE'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ENDED NEW YORK TRADING AT 665 COMPARED WITH 662 ON WEDNESDAY THE DECLINE IN TREASURY PRICES ALSO DRAGGED DOWN PRICES OF TAXEXEMPT MUNICIPAL BONDS CORPORATE BONDS AND MORTGAGEBACKED SECURITIES BOND TRADERS SAID THAT PRICES OF SHORTTERM SECURITIES ALSO WERE HURT BY SPECULATION THAT NEXT WEEK'S SALE OF 16 BILLION OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES COULD FIND FEWER BUYERS THAN OTHER RECENT TREASURY AUCTIONS DUE TO INVESTORS' CONCERNS ABOUT INTEREST RATES SUPPLY IS ALSO A PROBLEM IN THE MUNICIPAL BOND MARKET WHERE NEW OFFERINGS HAVE BEGUN STACKING UP ON DEALERS' SHELVES NEW CORPORATE BONDS ALSO CONTINUE TO FLOW DRAINING SUPPORT FROM THE SECONDARY MARKET MR CALLAHAN SAID THE TROUBLE SURROUNDING HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL ALSO AFFECTED THE MARKET THERE IS A FEAR THAT ROSTENKOWSKI'S PROBLEMS ARE GOING TO GUM UP THE BUDGET NEGOTIATIONS HE SAID I THINK IT'S ERRONEOUS BUT THE MARKET IS NERVOUS BECAUSE WHEN YOU'RE AT THE KIND OF LEVELS THE MARKET HAS ACHIEVED YOU ARE ALWAYS LOOKING OVER YOUR SHOULDER ALL OF THESE ISSUES HAVE RESULTED IN A REVERSAL OF MARKET SENTIMENT WHEREAS LAST WEEK TREASURYS LOOKED ON TRACK TO CAP THEIR TWOMONTH RALLY WITH AN ASSAULT ON A 65 YIELD ON THE 30YEAR BOND TRADERS ARE NOW BEGINNING TO WONDER HOW FAR UP YIELDS WILL HEAD DAVID HORNER SENIOR FINANCIAL FUTURES STRATEGIST AT MERRILL LYNCH & CO SAID THE MARKET WILL NOW TRY AND CARVE OUT A NEW TRADING RANGE WITH TREASURYS HAVING RUN OUT OF GOOD NEWS WE'RE PROBABLY GOING TO FIND A RANGE WHERE WE'LL DO SOME CONSOLIDATION I THINK WE'VE SEEN A TOP ON THE BOND BUT WE'RE NOT LIKELY TO TAKE YIELDS BACK UP THAT MUCH MR HORNER CONTINUED MOST LIKELY HE SAID THE YIELD ON THE LONG BOND WILL BOUNCE AROUND BETWEEN 650 AND 670 TRADERS DON'T BELIEVE THE BOTTOM WILL FALL OUT OF THE MARKET AS LONG AS THERE IS NO REAL BAD NEWS ON THE BUDGET FRONT THE LONG END WILL PROBABLY BE ABLE TO REGROUP SAID MR CALLAHAN MEANWHILE THE TREASURY SOLD 1526 BILLION OF 52WEEK BILLS YESTERDAY HERE ARE THE RESULTS 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 BILLS ARE DATED JULY 29 AND MATURE JULY 28 1994 ALTHOUGH COCACOLA'S 100YEAR BOND OFFERING WAS THE TALK OF THE MARKET YESTERDAY A 1 BILLION OFFERING BY PDV AMERICA INC WAS THE LARGEST OFFERING PDV A UNIT OF PETROLEOS DE VENEZUELA SA PRICED 500 MILLION OF 10YEAR NOTES TO YIELD 7995 250 MILLION OF FIVEYEAR SENIOR NOTES TO YIELD 735 AND 250 MILLION OF SEVENYEAR SENIOR NOTES TO YIELD 775 THE THREEPART OFFERING WAS SPLITRATED MEANING THAT THE TWO MAJOR CREDITRATING AGENCIES OFFERED DIFFERENT OPINIONS ABOUT THE CREDITWORTHINESS OF PDV MOODY'S INVESTORS SERVICE INC WHICH IS OFTEN THE MORE CONSERVATIVE OF THE TWO RATED THE OFFERING BAA3 THE LOWEST RUNG ON THE INVESTMENTGRADE SCALE BUT STANDARD & POOR'S CORP PLACED THE OFFERING IN THE JUNK BOND CATEGORY WITH A DOUBLEB RATING THE OFFERING WAS SOLD VIA UNDERWRITERS LED BY SALOMON BROTHERS INC DESPITE ITS RATINGS THERE WAS STRONG DEMAND FOR THE OFFERING DUE TO ITS RELATIVELY HIGH YIELD ONE INVESTOR WHO WANTED TO PURCHASE THE FIVEYEAR AND 10YEAR CLASSES SAID HIS ALLOCATION WAS CUT BACK BY SLIGHTLY OVER 50 THE COMPANY IS ATTRACTIVE BECAUSE WHILE IT IS THE SUBSIDIARY OF A VENEZUELAN COMPANY IT HAS ASSETS IN THE US INVESTORS THEREFORE HAVE MORE SECURITY IN CASE OF DEFAULT A WEAK DEBT MARKET AND A PLETHORA OF OUTSTANDING MUNICIPAL BOND ISSUES JOINED YESTERDAY TO PRODUCE DEPRESSED PRICES FOR ACTIVELY TRADED MUNIS WHILE SOME ISSUES BARELY TRADED AND WERE ABLE TO HOLD UNCHANGED OTHER ISSUES WERE OFF AS MUCH AS 3/8 POINT DEALERS ARE STILL HAVING TROUBLE MOVING ALL OF THEIR MUNI PAPER OUT THE DOOR WHILE NO LARGE OFFERINGS THOSE OVER 100 MILLION WERE BROUGHT TO MARKET YESTERDAY MORE THAN 4 BILLION IN SHORTTERM AND LONGTERM OFFERINGS WERE PRICED WEDNESDAY AND THERE WAS MORE THAN 21 BILLION IN UNSOLD ISSUANCE YESTERDAY ACCORDING TO THE BLUE LIST A STANDARD & POOR'S CORP DAILY PUBLICATION THAT'S AN INDICATOR GUYS ARE HEAVY WITH SUPPLY SAID A TRADER OF NEW YORK AND CALIFORNIA DEBT AT A PRIMARY DEALER IN YESTERDAY'S SECONDARY TRADE THE DENVER CITY AND COUNTY AIRPORT 675 REVENUE BONDS SERIES C DUE 2022 WERE UNCHANGED FROM LATE WEDNESDAY AT 102 1/2 TO YIELD 648 AND THE LOS ANGELES DEPARTMENT OF WATER AND POWER ELECTRIC PLANT 5875 REVENUE REFUNDING BONDS DUE 2030 WERE OFF 1/2 AT 100 1/8 TO YIELD 584 MORTGAGEBACKED MARKET PARTICIPANTS HAD TO JUGGLE THE EFFECTS OF SURGING HOMELOAN REFINANCE ACTIVITY AND RISING INTEREST RATES THE MORTGAGE BANKERS ASSOCIATION OF AMERICA REPORTED WEDNESDAY THAT THE WEEKLY REFINANCING INDEX ROSE 11 FOR THE WEEK ENDED JULY 16 CONTINUING AN ASCENT BEGUN IN EARLY JUNE THE RISE IN RATES HOWEVER APPEARED TO BE HAVING THE GREATEST IMPACT ON THE MARKET THE CLEAREST EVIDENCE CAME FROM MORTGAGE BANKERS WHO CONTINUED TO SELL NEWLY ORIGINATED LOANS AS 65 AND 7 SECURITIES BANKERS WILL HOLD ONTO NEW LOANS WHEN RATES ARE FALLING BECAUSE THE DROP INCREASES THE VALUE OF THEIR SECURITIES BUT THE NUDGE UPWARD IN RATES PROMPTED BANKERS TO SHED SECURITIES OVER THE LAST TWO DAYS THE PRICE OF 65 AND 7 ISSUES SUBSEQUENTLY FELL IN PRICE IN THE SECONDARY MARKET BUT THEIR VALUE IN RELATION TO TREASURYS DIDN'T CHANGE MUCH BUYERS WERE FOUND FOR THE SECURITIES MOSTLY AMONG DEALERS WHO HAVE BEEN GATHERING COLLATERAL TO CREATE REAL ESTATE MORTGAGE INVESTMENT CONDUITS NEARLY 4 BILLION IN NEW REMICS WERE ANNOUNCED WEDNESDAY FOLLOWED BY ANOTHER 900 MILLION YESTERDAY IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR AUGUST DELIVERY ENDED 14/32 LOWER AT 98 27/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ENDED 8/32 LOWER AT 98 28/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 8/32 LOWER AT 98 24/32 9307230075 930723 POTOMAC WATCH HAVE YOU HEARD THE ONE ABOUT INNOCENT GIVING' BY PAUL A GIGOT I WOULD LIKE TOM FOLEY NOT TO HAVE TO THINK ABOUT MONEY SAYS PETER DE ROETTH HIGH SCHOOL PAL AND INVESTMENT ADVISER TO THE SPEAKER OF THE US HOUSE OF REPRESENTATIVES MR DE ROETTH AN AMIABLE SOFTSPOKEN MAN CALLED BACK THIS WEEK TO ELABORATE ON HIS FORAYS INTO LUCRATIVE INITIAL PUBLIC STOCK OFFERINGS IPOS FOR SPEAKER FOLEY THE ONLY RETURN CALL HE SAYS HE MADE A STOCK PICKER BY TRADE MR DE ROETTH IS ANNIE OAKLEY WHEN IT COMES TO INVESTING FOR THE SPEAKER FROM 1989 TO 1992 AS ROLL CALL'S GLENN SIMPSON HAS REPORTED HE NAILED 40 OF 42 IPOS PADDING MR FOLEY'S INCOME BY A COMELY 100000 MR DE ROETTH'S SEMICANDOR ABOUT ALL OF THIS HELPS EXPLAIN WHY AMERICANS TRUST CONGRESS EVEN LESS THAN THEY ADMIRE LAWYERS NOW MOST AMERICANS WOULD SETTLE FOR A SALARY AS LARGE AS MR FOLEY'S OFFICIAL 171500 A YEAR THE SPEAKER'S FELLOW DEMOCRATS CONSIDER HIM RICH AT LEAST FOR TAX PURPOSES BUT MR DE ROETTH THINKS IT'S NEARLY A HARDSHIP WAGE WHEN YOU GO FROM AN ERA OF CLASS PRIVILEGE TO AN ERA OF AFFIRMATIVE ACTION THERE IS A TRANSITION PERIOD WHERE PEOPLE IN THE MIDDLE CLASS ARE SUFFERING MR DE ROETTH SAYS IN A UNIQUE ECONOMIC ANALYSIS HE SAYS THE SPEAKER IS A MIDDLECLASS GUY MUCH LIKE THE SCHOOL TEACHERS DOCTORS AND OTHERS HE SAYS HE ALSO CUTS IN ON HIS IPOS HE WON'T DISCLOSE THEIR NAMES THESE ARE JUST PEOPLE I'VE TRIED TO HELP HE SAYS THOUGH IT MAY SURPRISE ALGEBRA TEACHERS TO HEAR THEY'RE NO WORSE OFF THAN THE MAN WHO IS THIRD IN THE LINE OF PRESIDENTIAL SUCCESSION MR DE ROETTH THINKS THE SPEAKER'S HARDSHIP IS ESPECIALLY ACUTE BECAUSE HE'S HAD TO GIVE UP HONORARIA OR SPEAKING FEES CONNOISSEURS OF HOUSE REFORM WILL RECALL THAT THE MEMBERS STOPPED TAKING HONORARIA IN 1991 AMID MUCH SELFCONGRATULATION THERE WAS A SOURCE OF INCOME IN THE 1980S THAT DISAPPEARED FOR TOM SAYS MR DE ROETTH AND THE FACT THAT I FAVOR TOM WITH STOCK DEALS NOW IS APPROPRIATE TO MAKE UP THE DIFFERENCE SURE ENOUGH THE NUMBER OF IPOS IN WHICH HE CUT IN MR FOLEY JUMPED TO 13 IN 1991 AND 14 IN 1992 FROM FEWER THAN 10 IN EARLIER YEARS IN OTHER WORDS MR DE ROETTH ALL BUT ADMITS HIS IPO DEALS ARE A WAY TO DISGUISE HONORARIA A CLEVER END RUN AROUND HOUSE RULES IS HE WORRIED THAT THIS MIGHT BE AN IMPROPER GIFT UNDER THOSE RULES IN LAW THE IDEA OF A GIFT IS AN OFTEN ANALYZED CONCEPT MR DE ROETTH MUSES HE THEN DISTINGUISHES BETWEEN WHAT HE CALLS INNOCENT GIVING BY WHICH HE MEANS HIS OWN AND ACTIVE GIVING WHICH HE SAYS IS WHAT PEOPLE DO WHEN THEY WANT SOMETHING IN RETURN THIS MAY BE THE MOST ILLUMINATING ETHICAL DISTINCTION SINCE TAMMANY HALL'S GEORGE WASHINGTON PLUNKITT DISCOURSED ON HONEST AND DISHONEST GRAFT AND BY THE WAY MR DE ROETTH SAYS HE WAIVES HIS USUAL 1OFASSETS ADVISORY FEE FOR THE SPEAKER BECAUSE HIS PORTFOLIO IS SO SMALL ANYTHING UNDER 100000 IS ALMOST PART OF THE R&D DEPARTMENT HE SAYS IN FACT IN 1992 MR FOLEY'S IPO INVESTMENTS TOTALED 185400 THOUGH THE PURCHASES WERE OFTEN SOLD QUICKLY FOR SHORTTERM PROFITS MR DE ROETTH IS MUCH LESS CANDID WHEN IT COMES TO THE UNDERWRITERS THAT CUT HIM IN ON THE IPOS THESE INVESTMENT BANKS USUALLY SAVE SUCH SHARES FOR THEIR BEST CLIENTS MR DE ROETTH ADMITS HIS TWOMAN FIRM IS SMALL BUT SAYS HE GETS IPOS BECAUSE HE'S BEEN LOYAL TO UNDERWRITERS IN HARDTOSELL CASES WHICH IS ENTIRELY PLAUSIBLE BUT HE'S LESS PLAUSIBLE WHEN HE SAYS THAT NONE OF THE UNDERWRITERS KNOW THAT MR FOLEY BENEFITS FROM THE IPO SHARES THEY DISPENSE TO MR DE ROETTH WE DEAL WITH THOSE GUYS AT A VERY LOW LEVEL HE SAYS THEY ARE JUST FOOT SOLDIERS YET HE WON'T GIVE THE NAMES OF THOSE SOLDIERS OR EVEN OF THE FIRMS HE DEALS WITH LEAD UNDERWRITERS ARE PUBLISHED OF COURSE SO I SCANNED THE COMPUTER FOR THE FOLEY IPOS THIS WEEK WALL STREET'S MORGAN STANLEY HANDLED 10 ISSUES WHILE GOLDMAN SACHS AND ALEX BROWN TOOK SIX EACH AND REGIONAL FIRMS MOST OF THE REST ARE THEY ALL SUCH INNOCENT GIVERS AS MR DE ROETTH MORGAN SAYS THAT IT'S DONE BUSINESS WITH MR DE ROETTH'S COMPANY SINCE 1980 BUT THAT NO ONE KNEW ABOUT THE FOLEY TIE WHILE THERE'S NO EVIDENCE OF A QUID PRO QUO SECURITIES FIRMS KNOW A SPEAKER OF THE HOUSE CAN BE HELPFUL IN 1991 MR FOLEY REFERRED A BANKINGREFORM BILL BOTH TO THE BANKING COMMITTEE WHICH WANTED TO LET BANKS COMPETE WITH SECURITIES HOUSES AND TO ENERGY & COMMERCE WHICH DID NOT JOHN DINGELL'S ENERGY TEAM KILLED THE REFORM PLEASING WALL STREET EVEN IF MR FOLEY'S MOTIVES WERE PURE HIS IPO PROFITS RAISE QUESTIONS OR AT LEAST THEY DO IF EVERYONE IS SUPPOSED TO LIVE BY THE APPEARANCE STANDARDS MR FOLEY'S DEMOCRATS HAVE IMPOSED ON OTHERS ESPECIALLY WITH DAN ROSTENKOWSKI UNDER A CLOUD IT'S POPULAR TO FRET ABOUT THE REFORM VS PATRONAGE ERAS BUT IT IS THE DEMOCRATS OF THE FOLEY ERA WHO PASSED AND ENFORCED CURRENT RULES USING THEM AGAINST THEIR ENEMIES DOES ANYONE DOUBT THERE'D BE AN UPROAR IF MR DE ROETTH HAD BEEN ED MEESE'S STOCK PICKER WOULDN'T COMMON CAUSE BE SHOUTING FROM THE ROOFTOPS MAYBE THE REAL PROBLEM HERE ISN'T GREED BUT TENURE MR ROSTENKOWSKI LIKES TO SAY HE COULD MAKE MILLIONS IN PRIVATE LIFE AS COULD THE TALENTED MR FOLEY BUT THEY WOULD HAVE TO GIVE UP THE POWER OF A LIFETIME POLITICAL CAREER SO MAYBE THEY SHOULD HEED MR DE ROETTH TERM LIMITS ARE THE ONE REFORM THAT WOULD REALLY LET THEM FORGET ABOUT MONEY 9307230074 930723 WHO'S NEWS EXVICE CHAIRMAN AT LIZ CLAIBORNE JOINS HILFIGER PARTNERSHIP NEW YORK JAY MARGOLIS IS SQUEEZING INTO THE JEANS BUSINESS MR MARGOLIS WHO ABRUPTLY RESIGNED LAST WEEK AS VICE CHAIRMAN OF LIZ CLAIBORNE INC SAID HE WAS JOINING THE PARTNERSHIP THAT CONTROLS THE SUCCESSFUL MENSWEAR APPAREL MAKER TOMMY HILFIGER CORP MR MARGOLIS'S INITIAL TASK WILL BE DEVELOPING A MARKET FOR PEPE JEANS A EUROPEAN DESIGNER JEANS BUSINESS THE PARTNERSHIP RECENTLY TOOK PRIVATE MR MARGOLIS 44 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF PEPE JEANS USA AND ALSO NAMED TO THE BOARD OF TOMMY HILFIGER MR MARGOLIS WHO LEFT LIZ CLAIBORNE THE DAY BEFORE THE COMPANY ANNOUNCED SHARPLY LOWER PROFIT HAS A DAUNTING TASK THE MARKET FOR SKINTIGHT DESIGNER DENIM HAS SHRUNK TO A MERE DROP IN AN OCEAN OF BLUE DENIM SAID ALAN MILLSTEIN PUBLISHER OF THE FASHION NETWORK REPORT BUT MR MARGOLIS SAID PEPE IS WELLPOSITIONED TO BECOME A MAJOR FACTOR IN THE HIGHPRICED DENIM BUSINESS HE SAID THE COMPANY HAS A NEW DESIGN TEAM AND WILL OPEN 100 SHOPS IN STYLISH OUTPOSTS SUCH AS BLOOMINGDALE'S DEPARTMENT STORES HE SAID PEPE HAS SALES OF 200 MILLION IN EUROPE AND 60 MILLION IN THE US MR MARGOLIS SAID HIS PARTNERSHIP APPAREL INTERNATIONAL HOLDINGS LTD IS EYEING THE WOMEN'S WEAR BUSINESS HILFIGER CORP WENT PUBLIC IN MID1992 AT 15 A SHARE JUMPED TO A PREMIUM AND YESTERDAY CLOSED AT 2250 A SHARE ON THE NEW YORK STOCK EXCHANGE FOR THE FISCAL YEAR ENDED MARCH 31 THE COMPANY HAD NET INCOME OF 146 MILLION OR 111 A SHARE ON REVENUE OF 1386 MILLION 9307230073 930723 BUSINESS BRIEF LOCKHEED CORP SECONDQUARTER NET INCOME ROSE 21 SALES SOARED 35 LOCKHEED CORP CALABASAS CALIF BUOYED BY AN AIRCRAFT ACQUISITION REPORTED A SHARP 21 INCREASE IN SECONDQUARTER NET INCOME TO 94 MILLION OR 150 A SHARE SALES FOR THE PERIOD ROSE 35 TO 335 BILLION FROM 248 BILLION A YEAR EARLIER THE LATEST RESULTS COMPARED WITH NET OF 77 MILLION OR 124 A SHARE A YEAR EARLIER LOCKHEED SAID THE PRETAX EARNINGS FROM ITS PROGRAMS WERE 200 MILLION UP FROM 148 MILLION REFLECTING THE DEFENSE CONTRACTOR'S ACQUISITION OF GENERAL DYNAMICS CORP'S TACTICAL FIGHTER DIVISION EARLIER THIS YEAR DEBT FROM THE 15 BILLION PURCHASE INCREASED INTEREST EXPENSE TO 49 MILLION FROM 30 MILLION A YEAR EARLIER LOCKHEED CHAIRMAN DANIEL TELLEP ATTRIBUTED THE EARNINGS INCREASE IN PART TO STRONG PERFORMANCE BY THE COMPANY'S AERONAUTICAL SYSTEMS BUSINESS AND TO SLIGHTLY INCREASED PROFITS IN THE MISSILES AND SPACE DIVISION DESPITE LOWER SALES FOR THE SIX MONTHS LOCKHEED HAD NET OF 170 MILLION OR 272 A SHARE COMPARED WITH A LOSS OF 488 MILLION OR 785 A SHARE REFLECTING A CHARGE FOR THE NEW ACCOUNTING STANDARD ON RETIREE BENEFITS WITHOUT THE CHARGE THE COMPANY HAD PROFIT OF 143 MILLION OR 230 A SHARE SALES ROSE 24 TO 586 BILLION FROM 471 BILLION 9307230072 930723 PACIFIC GAS & ELECTRIC BUYBACK SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MUCH AS 1 BILLION OF THE COMPANY'S COMMON STOCK OVER THE NEXT THREE YEARS AT THE STOCK'S CLOSING PRICE YESTERDAY OF 34375 THE REPURCHASE WOULD REPRESENT ABOUT 29 MILLION SHARES OR ABOUT 67 OF THE UTILITY COMPANY'S 431 MILLION SHARES OUTSTANDING PACIFIC GAS & ELECTRIC SAID THE REPURCHASE WOULD BE LIMITED TO SHARES NEEDED TO MEET CAPITAL STRUCTURE TARGETS AND OFFSET NEW SHARES ISSUED THROUGH THE COMPANY'S DIVIDEND REINVESTMENT AND EMPLOYEE SAVINGS PLANS A SPOKESMAN SAID THE CAPITAL TARGETS HAVEN'T YET BEEN DETERMINED 9307230071 930723 HUD ISSUES GOALS AIMED AT BOOSTING HOUSING FOR NEEDY BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ISSUED INTERIM GOALS FOR FEDERAL HOME LOAN MORTGAGE CORP AND FEDERAL NATIONAL MORTGAGE ASSOCIATION AIMED AT FUNNELING TENS OF BILLIONS OF DOLLARS INTO HOUSING FOR LOW AND MODERATEINCOME FAMILIES AND CENTRAL CITIES UNDER THE INTERIM GOALS FOR 1993 WHICH AREN'T MANDATORY FREDDIE MAC'S PURCHASES OF CONVENTIONAL MORTGAGES THAT FINANCE HOUSING FOR LOW AND MODERATEINCOME FAMILIES SHOULD EQUAL 28 OF THE TOTAL NUMBER OF DWELLING UNITS FINANCED BY ITS MORTGAGE PURCHASES FOR HOUSING IN CENTRAL CITIES THE GOAL IS 26 OF THE TOTAL THOSE CATEGORIES CAN OVERLAP IN DETERMINING WHETHER FREDDIE MAC IS MEETING THE GOALS FANNIE MAE'S INTERIM GOALS FOR 1993 WERE SET AT 30 FOR LOW AND MODERATEINCOME FAMILIES AND AT 28 FOR CENTRAL CITY RESIDENTS MITCHELL DELK FREDDIE MAC'S VICE PRESIDENT FOR GOVERNMENT AND INDUSTRY RELATIONS SAID THAT IF FREDDIE MAC'S MORTGAGE PURCHASES FOR 1993 CONTINUE AT THEIR CURRENT PACE THE GOALS WOULD REQUIRE THE COMPANY TO PURCHASE OVER 55 BILLION OF MORTGAGES FOR LOW AND MODERATEINCOME FAMILIES AND OVER 50 BILLION FOR HOUSEHOLDS LIVING IN CENTRAL CITIES THIS YEAR FANNIE MAE OFFICIALS COULDN'T BE REACHED FOR COMMENT ON WHAT ITS TARGETS IMPLY IN THE WAY OF MORTGAGE PURCHASES IN 1994 BOTH COMPANIES WILL HAVE THE ANNUAL GOALS OF 30 IN BOTH THE CATEGORIES FREDDIE MAC'S MR DELK SAID THE COMPANY PLANS TO WORK DILIGENTLY TO MEET THE GOALS WHICH WERE ANNOUNCED IN LETTERS YESTERDAY FROM HUD SECRETARY HENRY CISNEROS TO THE TWO SHAREHOLDEROWNED CONGRESSIONALLY CHARTERED CORPORATIONS THE COMPANIES ARE THE DOMINANT FORCES IN THE MORTGAGE FINANCE MARKET AND THE INTERIM GOALS WERE ISSUED UNDER LAW ENACTED LAST YEAR THAT BRINGS THE TWO ENTERPRISES UNDER CLOSER FEDERAL SUPERVISION MR DELK SAID FREDDIE MAC IS WELL SITUATED TO MEET THOSE GOALS AT THIS TIME HOUSING AFFORDABILITY IS AT AN ALLTIME HIGH DUE TO HISTORICALLY LOW INTEREST RATES COUPLED WITH FLAT HOUSE APPRECIATION AS A RESULT FREDDIE MAC'S ABILITY TO SERVE THESE FAMILIES IS ENHANCED HE SAID 9307230070 930723 MARKETING BRIEF TIMES MIRROR CO NET INCOME INCREASED 84 DURING THE SECOND QUARTER TIMES MIRROR CO LOS ANGELES POSTED AN 84 INCREASE IN SECONDQUARTER NET INCOME TO 479 MILLION OR 37 CENTS A SHARE FROM 441 MILLION OR 34 CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER ENDED JUNE 27 CLIMBED 22 TO 9029 MILLION FROM 8834 MILLION THE LATEST RESULTS INCLUDE PROFIT OF 75 MILLION FROM THE COMPANY'S BROADCAST TELEVISION STATIONS WHICH TIMES MIRROR AGREED TO SELL IN MARCH AND HAS CLASSIFIED AS DISCONTINUED OPERATIONS AND A GAIN OF TWO CENTS A SHARE FROM THE SALE OF MARKETABLE SECURITIES IN THE YEAREARLIER PERIOD PROFIT FROM DISCONTINUED TV OPERATIONS WAS 62 MILLION IN THE FIRST HALF NET BOUNCED BACK TO 776 MILLION OR 60 CENTS A SHARE FROM A NET LOSS OF 457 MILLION OR 36 CENTS A SHARE WHICH RESULTED FROM A CHANGE IN ACCOUNTING REVENUE ROSE 26 TO 177 BILLION FROM 173 BILLION WHILE REVENUE FROM CABLETV OPERATIONS ROSE 9 IN THE QUARTER TIMES MIRROR'S CHIEF EXECUTIVE OFFICER ROBERT F ERBURU SAID HE EXPECTS CABLE REREGULATION TO SLOW ITS GROWTH BEGINNING IN THE FALL MR ERBURU ALSO NOTED THAT SOFTNESS IN THE ADVERTISING MARKET PARTICULARLY IN LOS ANGELES LEADS US TO REMAIN CAUTIOUS ABOUT OUR OUTLOOK FOR THE YEAR 9307230069 930723 BUSINESS BRIEF NUWEST INDUSTRIES INC TALKS WITH NETWORK CO II ON BUYING DEBT ARE ENDED NUWEST INDUSTRIES INC SAID IT ENDED TALKS WITH NETWORK CO II A NEW YORK INVESTMENT FIRM THAT HAD PROPOSED PURCHASING SUBORDINATED DEBT OF NUWEST THE FAILURE TO COMPLETE THE DEAL SENDS NUWEST BACK TO THE DRAWING BOARD TO TRY TO SKETCH OUT A NEW PLAN TO AVOID FILING FOR BANKRUPTCYLAW PROTECTION THE COMPANY SAID IT IS CONTINUING TO DISCUSS THE REFINANCING OF DEBT WITH ITS BANK BUT A DEAL WILL REQUIRE A SUBORDINATED DEBT OR EQUITY INVESTMENT IN NUWEST AS REPORTED THE DENVER COMPANY DIDN'T MAKE A 21 MILLION PAYMENT DUE JULY 1 ON ITS DEBT BECAUSE OF A SEVERE CASH SHORTAGE BROUGHT ABOUT BY LOW FERTILIZER PRICES THE COMPANY'S LENDERS HAVE EXTENDED THE DEBT PAYMENT TO OCT 1 THE COMPANY'S ABILITY TO REFINANCE ITS DEBT WILL ALSO DETERMINE THE FATE OF AN AGREEMENT NUWEST HAS REACHED WITH RHONEPOULENC INC THAT WOULD PROVIDE THE COMPANY WITH HIGHERQUALITY ORE NUWEST SAID THE ORE SUPPLY AGREEMENT WOULD RESULT IN LOWER PRODUCTION COSTS BUT THE AGREEMENT IS CONTINGENT ON NUWEST'S ABILITY TO DELIVER 12 MILLION IN MINING EQUIPMENT TO RHONE NUWEST PLANS TO LEASE THE NECESSARY EQUIPMENT AND CAN'T DO SO UNTIL IT HAS REFINANCED ITS DEBT 9307230068 930723 BUSINESS BRIEF AHMANSON GLENFED REPORT BIG LOSSES FOR QUARTER BUT EASE REAL ESTATE WOES TWO BIG SOUTHERN CALIFORNIA THRIFTS POSTED LARGE QUARTERLY LOSSES BUT ALSO MADE PROGRESS IN CLIMBING OUT OF THE CALIFORNIA REAL ESTATE SINKHOLE HF AHMANSON & CO BASED IN IRWINDALE REPORTED A SECONDQUARTER LOSS OF 291 MILLION OR 255 A SHARE COMPARED WITH NET INCOME OF 671 MILLION OR 54 CENTS A SHARE A YEAR EARLIER GLENFED INC BASED IN GLENDALE AND THE PARENT OF GLENDALE FEDERAL BANK REPORTED A WIDENED FISCAL FOURTHQUARTER LOSS OF 299 MILLION OR 87 CENTS A SHARE COMPARED WITH A LOSS OF 26 MILLION OR 76 CENTS A SHARE A YEAR EARLIER BUT THE THRIFT ALSO REPORTED A SHARP REDUCTION IN TROUBLED REAL ESTATE DEVELOPMENT ASSETS AND A LOWER LOANLOSS PROVISION ON MONDAY AHMANSON THE PARENT OF HOME SAVINGS OF AMERICA AND THE NATION'S LARGEST THRIFT COMPANY SAID IT WOULD POST A QUARTERLY LOSS BECAUSE IT WAS SELLING 12 BILLION OF BAD HOME LOANS TO A UNIT OF BEAR STEARNS COS AT AN UNDISCLOSED DISCOUNT THE SALE ACCELERATED AHMANSON'S STRATEGY OF SHEDDING BAD LOANS AND ASSETS TO CLEAR AWAY THE REAL ESTATE WRECKAGE OF THE RECESSION AFTER THE SALE NONPERFORMING ASSETS TOTALED 1 BILLION COMPARED WITH 22 BILLION A YEAR EARLIER RICHARD H DEIHL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE THRIFT SHOULD RETURN TO PROFITABILITY IN THE THIRD AND FOURTH QUARTERS FOR THE SIXMONTH PERIOD THE COMPANY POSTED A LOSS OF 2581 MILLION OR 233 A SHARE COMPARED WITH NET INCOME OF 1378 MILLION OR 111 A SHARE A YEAR EARLIER GLENFED DESPITE POOR OPERATING RESULTS REPORTED SOME GOOD NEWS IN ITS EFFORTS TO AVOID GOVERNMENT SEIZURE IN THE FISCAL FOURTH PERIOD ENDED JUNE 30 TROUBLED COMMERCIAL LENDING AND REAL ESTATE DEVELOPMENT ASSETS DROPPED TO 161 MILLION FROM 9567 MILLION THREE YEARS AGO AT A COST OF 5189 MILLION IN LOSSES OVER THE THREE YEARS THE COMPANY SAID IT EXPECTED NO MORE LOSSES FROM THESE SOURCES NONPERFORMING ASSETS AND RESTRUCTURED LOANS DECLINED 33 TO 9382 MILLION FROM 9705 MILLION A YEAR EARLIER LOANLOSS PROVISIONS ALSO DECLINED FALLING 41 TO 461 MILLION FROM 787 MILLION A YEAR EARLIER THE COMPANY POSTED A NARROWED LOSS FOR THE YEAR OF 808 MILLION OR 237 A SHARE COMPARED WITH A LOSS OF 1209 MILLION OR 353 A SHARE A YEAR EARLIER THE LATEST YEARLY LOSS INCLUDED A ONETIME GAIN OF 583 MILLION OR 170 A SHARE FROM AN EXCHANGE OF 137 MILLION OF SUBORDINATED DEBT FOR PREFERRED STOCK AS PART OF THE THRIFT'S RECAPITALIZATION PLAN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AHMANSON SHARES CLOSED AT 1975 DOWN 25 CENTS AND GLENFED SHARES CLOSED AT 125 DOWN 125 CENTS 9307230067 930723 FORM + FUNCTION BY JOHN PIERSON TRASH IS COMING OUT OF THE CLOSET JAY BERGAMINI AN OAK LAWN ILL CONSULTANT HAS DESIGNED A RECYCLE CENTRE THAT RESEMBLES A WISHING WELL AND CONCEALS THREE 17GALLON TRASH CANS ONE EACH FOR SAY OFFICE PAPER NEWSPAPERS AND ALUMINUM CANS THERE'S SPACE FOR A BULLETIN BOARD AND VIDEO MONITOR MR BERGAMINI PRESIDENT OF MUNICIPAL WASTE CONSULTANTS SAYS HIS SHINGLEDROOF TUBE IS SO ATTRACTIVE PEOPLE WILL LOVE TO USE IT AND IF EMPLOYEES CAN BE PERSUADED TO BRING THEIR TRASH TO A CENTRAL PLACE COMPANIES WON'T HAVE TO HIRE JANITORS TO VISIT EVERY DESK HE SAYS MANY PEOPLE LIKE MR BERGAMINI'S DESIGN BUT SOME QUESTION HIS THEORIES EAST BRUNSWICK TOWNSHIP NJ HAS A HALFDOZEN RECYCLE CENTRES IN PUBLIC PLACES THEY ARE VERY SUCCESSFUL SAYS MICHAEL OPALESKI THE TOWNSHIP'S DIRECTOR OF PUBLIC WORKS PAUL GOLDSTEIN PRESIDENT OF NORTHWEST PAPER A CHICAGO RECYCLER CALLS THE BERGAMINI CENTER CLEAN AND NICE BUT HE SAYS MANY BUILDINGS DON'T HAVE SPACE FOR THE CENTER WHICH IS 30 INCHES ACROSS BUT REQUIRES ROUGHLY 100 SQUARE FEET FOR PEOPLE TO GET AT ALL SIDES OF IT THE NOTION THAT WHITECOLLAR WORKERS SHOULDN'T SORT TRASH RUNS STRONG CONSULTANT ROGER HOFFMAN GREEN BAY WIS SAYS MANY COMPANIES THINK IT'S BETTER TO HAVE MINIMUMWAGE JANITORS SEPARATING DIFFERENT KINDS OF PAPER THAN 250000 BANKERS SEARS ROEBUCK CONSIDERED CENTRAL TRASH COLLECTION FOR ITS NEW OFFICES IN HOFFMAN ESTATES ILL BUT STAYED WITH DESKSIDE PICKUP WE WANTED TO MAKE IT EASY FOR PEOPLE A SEARS SPOKESMAN SAYS FRANK DI SESA RESEARCH AND DEVELOPMENT DIRECTOR FOR TUCKER HOUSEWARES LEOMINSTER MASS WHICH MAKES PLAINLY FUNCTIONAL TRASH CONTAINERS QUESTIONS WHETHER GOOD LOOKS MATTER TRASH IS SOMETHING YOU WANT TO HIDE HE SAYS MR BERGAMINI SAYS TRASH SHOULD BE CELEBRATED NOT HIDDEN THE RECYCLE CENTRE OUT FRONT WITH THE CORPORATE LOGO ON IT ISN'T A GARBAGE CAN IT'S A PIECE OF FURNITURE PARKS ARE FOR THE PEOPLE AND NOW THEY'RE COMING TO BE BY THE PEOPLE AS WELL FREDERICK LAW OLMSTED THE 19THCENTURY LANDSCAPE ARCHITECT DESIGNED NEW YORK CITY'S CENTRAL PARK VERY MUCH FOR THE PEOPLE BUT HISTORIANS SAY HE WAS AN AUTOCRAT WHOSE CONSULTATIONS WITH THE PUBLIC RARELY WENT BEYOND DISCUSSIONS WITH THE CITY COUNCIL TODAY WE HAVE THE PARTICIPATORY PARK WHOSE DESIGNERS TAKE PROPOSALS TO THE PUBLIC BY TV AND INVITE VIEWERS TO CALL IN WITH COMMENTS AND SUGGESTIONS ANGELA DANADJIEVA A LANDSCAPE ARCHITECT FROM TIBURON CALIF CONDUCTED THREE ONEHOUR STATEWIDE TV SHOWS TO FIND OUT WHAT INDIANA RESIDENTS FELT SHOULD BE IN INDIANAPOLIS'S NEW RIVER PROMENADE PLANNER RON THOMAS OF SEATTLE COORDINATED A THREEHOUR TELEVISED CALLIN SESSION TO LAY OUT PROPOSALS FOR EXPLORE HERITAGE PARK AND RIVER GREENWAY IN ROANOKE COUNTY VA AND TED BECKER AN AUBURN UNIVERSITY POLITICAL SCIENTIST ORGANIZED AN ELECTRONIC TOWN MEETING ON WHETHER TO RENOVATE AND ADD TO THE WAIKIKI BAND SHELL IN HONOLULU'S KAPIOLANI PARK PEOPLE WATCHING A CITY COUNCIL HEARING COULD SPEAK AND LATER VOTE BY PHONE THE VOTE WHICH WENT HEAVILY AGAINST THE PROJECT BECAUSE OF NOISE TRAFFIC AND OTHER CONSIDERATIONS HELPED TO KILL IT MR BECKER SAYS SUCH PURE DEMOCRACY UPSETS SOME PEOPLE WHO THINK REPRESENTATIVES CAN USUALLY DO A BETTER JOB BUT DAVID SCHUYLER A HISTORIAN AT FRANKLIN AND MARSHALL COLLEGE IN LANCASTER PA SAYS PARTICIPATORY DESIGN INCREASES PEOPLE'S SENSE OF OWNERSHIP AND MS DANADJIEVA SAYS THE PEOPLE WHO CALLED IN ADVICE ON RIVER PROMENADE KEPT ME FROM MAKING MISTAKES FOR EXAMPLE SHE WAS LEANING TOWARD SOMETHING LIKE COPENHAGEN'S TIVOLI GARDENS UNTIL HER TV VIEWERS MADE IT PLAIN THEY WANTED A PARK WITH NATIVE INDIANA THEMES ANDREW MARTIN SAYS HE HAS INVENTED A SIMPLER CHEAPER WAY TO RECLOSE A BAG OF FROZEN FOOD MR MARTIN'S LE LOOP BAG HAS A STRIP ALONG THE TOP THAT'S LOOPED AROUND AT ONE END TEAR OFF THE STRIP AND OPEN THE BAG TO RECLOSE TWIST THE BAG AND PULL THE STRIP THROUGH ITSELF TO HOLD THE BAG CLOSED LE LOOP IS SIMPLER THAN OTHER CLOSURES MR MARTIN SAYS BECAUSE THE TIE IS BUILT INTO THE BAG IT'S CHEAPER THAN ZIPPERED CLOSURES WIRE OR TAPE HE SAYS BECAUSE FOOD MANUFACTURERS CAN SWITCH FROM NONRECLOSABLE BAGS TO RECLOSABLE LE LOOPS WITH INEXPENSIVE SEALING DEVICES AS AN INDUCEMENT MR MARTIN'S COMPANY SIMPAK SAUSALITO CALIF WILL GIVE 20 OF ITS ROYALTIES TO ANY CHARITY A CUSTOMER PICKS SAFEWAY IS TESTING LE LOOP ON ITS PRIVATELABEL FROZEN FOOD IN THE WASHINGTON AREA AND IS GIVING ITS SHARE OF ROYALTIES TO EASTER SEALS MR MARTIN A COFOUNDER OF SMARTFOOD POPCORN SAYS SIMPAK IS NOW MAKING SEALING EQUIPMENT FOR 11 OTHER COMPANIES THE STRONGEST CHALLENGE TO LE LOOP COMES FROM MAKERS OF ZIPPERED CLOSURES YES THE LOOP IS SIMPLER AND IT'S PROBABLY LESS EXPENSIVE SAYS WILLIAM PALMER GENERAL MANAGER OF MINIGRIP/ZIPPAK NORTHBROOK ILL BUT IT'S NOT AIRTIGHT AND IT DOESN'T PREVENT FREEZER BURN MR MARTIN REPLIES THAT LE LOOP CAN BE TWISTED AS TIGHT AS A ZIPPERED BAG CAN BE ZIPPED AND LE LOOP CAN BE CLOSED DOWN CLOSER TO THE FOOD 9307230066 930723 BIRD GETS 10 MILLION FOR BUSINESS DEDHAM MASS BIRD CORP SAID IT SOLD ITS MUNICIPAL SLUDGE DISPOSAL BUSINESS TO HOUSTON'S BROWNINGFERRIS INDUSTRIES INC FOR ABOUT 10 MILLION BIRD A BUILDINGS MATERIAL AND ENVIRONMENTAL SERVICES CONCERN SAID IT WILL USE PROCEEDS FROM THE SALE TO REDUCE DEBT AND BOLSTER ITS INVESTMENT IN ITS ENVIRONMENTAL BUSINESS DIVISION 9307230065 930723 FOREIGN EXCHANGE DOLLAR DROPS SHARPLY AGAINST THE YEN AFTER TESTIMONY BY TREASURY'S ALTMAN BY XANDER MELLISH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR PLUNGED AGAINST THE YEN IN LATE TRADING YESTERDAY AFTER A US TREASURY OFFICIAL SAID A STRONG YEN WOULD REDUCE JAPAN'S SURPLUS RATHER QUICKLY BUT THE DOLLAR ENDED HIGHER AGAINST MAJOR EUROPEAN CURRENCIES AS INVESTORS SOUGHT REFUGE FROM SPECULATIVE ATTACKS THAT FORCED CENTRAL BANKS TO SPEND MASSIVE SUMS TO DEFEND THE FRENCH FRANC LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10545 YEN DOWN SHARPLY FROM 10813 YEN LATE WEDNESDAY IN NEW YORK BUT THE US CURRENCY GAINED AGAINST THE MARK CHANGING HANDS AT 17032 MARKS UP FROM 16970 MARKS WEDNESDAY STERLING WAS TRADING AT 15135 DOWN FROM 15155 THE DOLLAR FELL TO AN INTRADAY LOW OF 10520 YEN NOT FAR ABOVE ITS POSTWORLD WAR II LOW OF 10482 YEN SHORTLY AFTER DEPUTY TREASURY SECRETARY ROGER ALTMAN TESTIFIED BEFORE A SENATE COMMITTEE ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10640 YEN AND AT 17130 MARKS MR ALTMAN SAID THE YEN'S RECENT STRENGTH MIGHT PUSH JAPAN'S CURRENT ACCOUNT SURPLUS BELOW 2 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT COMPARED WITH CURRENT LEVELS WELL ABOVE 3 WE COULD SEE THOSE SURPLUSES COME DOWN RATHER QUICKLY IN THE LIGHT OF THE EXCHANGERATE ADJUSTMENT AND CONTINUING STIMULUS OF THE DOMESTIC ECONOMY BY THE JAPANESE GOVERNMENT MR ALTMAN SAID CLINTON ADMINSTRATION OFFICIALS HAVE FREQUENTLY CALLED FOR A STRONGER YEN IN AN ATTEMPT TO MAKE JAPANESE GOODS EXPENSIVE OVERSEAS AND REDUCE JAPAN'S TRADE SURPLUS WITH THE US ALTHOUGH MORE RECENTLY THE FOCUS HAS SHIFTED TO NEGOTIATING A TRADE ACCORD BETWEEN THE US AND JAPAN THE MARKET APPEARED TO TAKE MR ALTMAN'S REMARKS AS A RETURN TO THE PREVIOUS HAWKISH POLICY ON THE YEN THE LATE SPURT CAPPED A DAY OF GAINS FOR THE YEN AS INVESTORS FLEEING CURRENCY TURMOIL IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM FLOCKED TO THE JAPANESE CURRENCY BECAUSE OF THIS ERM SITUATION YOU'RE GETTING A MOVE INTO THE STRONGEST CURRENCY WHICH IS THE YEN SAID BILL BERTHA A VICE PRESIDENT AND CHIEF FOREIGN EXCHANGE DEALER AT MELLON BANK IN PITTSBURGH ALTHOUGH JAPANESE PRIME MINISTER KIICHI MIYAZAWA RESIGNED AS HEAD OF THE LIBERAL DEMOCRATIC PARTY THURSDAY EFFECTIVELY RESIGNING THE PREMIERSHIP AS WELL THE MOVE HAD BEEN EXPECTED AND HAD MINIMAL EFFECT ON THE YEN TRADERS SAID JAPAN WON'T HAVE A NEW LEADER UNTIL THE SMALL CONSERVATIVE PARTIES THAT FARED WELL IN LAST SUNDAY'S ELECTION HELP FORM A RULING COALITION BUT TRADERS SAID MARKET PLAYERS BELIEVE THE NEW GOVERNMENT WILL BE SIMILAR ENOUGH TO THE OLD ONE TO PROVIDE A SMOOTH TRANSITION AND ECONOMIC STABILITY BY CONTRAST THOUGH TRADERS ARE BEGINNING TO WONDER IF THE 14YEAROLD ERM MAY BE APPROACHING ITS FINAL DAYS TRADERS ESTIMATED THAT THE GERMAN CENTRAL BANK AND THE BANK OF FRANCE SPENT UP TO 15 BILLION MARKS YESTERDAY IN AN ATTEMPT TO KEEP THE MARK FROM RISING ABOVE 34180 FRANCS CLOSE TO ITS ERM CEILING OF 34305 FRANCS SINCE THE AXIS BETWEEN FRANCE AND GERMANY IS SEEN AS THE CENTER OF THE GRID RATE SYSTEM ANY FRENCH WITHDRAWAL COULD MEAN THE DOWNFALL OF THE ERM TRADERS SAID AT THE SAME TIME THE MARK CONTINUED ITS ADVANCE AGAINST THE SPANISH PESETA PORTUGUESE ESCUDO AND DANISH KRONE AND BEGAN TO MOVE HIGHER AGAINST THE BELGIAN FRANC THE GERMAN CURRENCY FELL BACK NEAR THE END OF THE DAY ON PROFITTAKING BUT THE ERM CRISIS APPEARS LIKELY TO CONTINUE THE INTERVENTION TO PURCHASE FRANCS WAS SEEN AS AN ATTEMPT BY THE CENTRAL BANKS TO BUY TIME IN HOPES THAT SPECULATORS WILL GROW TIRED OF SELLING THE FRENCH CURRENCY THE ALTERNATIVE THAT GERMANY REDUCE THE ATTRACTIVENESS OF THE MARK BY LOWERING INTEREST RATES IS SEEN AS DIFFICULT FOR THE BUNDESBANK BECAUSE OF A RECENT SHARP RISE IN GERMANY'S MONEY SUPPLY 9307230064 930723 LEISURE & ARTS BOOKSHELF A JOURNEY ALONG THE ROAD NOT TAKEN BY TIM CARRINGTON LONELY PLACES ARE LIKE LONELY PEOPLE LEFT ON THEIR OWN THEY CAN TURN WONKY MAYBE A LITTLE DELUSIONAL LACKING THE REALITY CHECKS DERIVED FROM STEADY HUMAN INTERACTION THEY OFTEN DEVELOP PECULIARLY INACCURATE VIEWS OF THEMSELVES BUT GEOGRAPHICAL AND POLITICAL ISOLATION CAN ALSO SPAWN A REFRESHING INDIFFERENCE TO MODERNITY A SORT OF HERMIT'S CLARITY ABOUT HOW TO ARRANGE LIFE WITHOUT REFERENCE TO LARGER SOCIAL NORMS THE PERSONALITY OF SOLITARY PLACES IS THE SUBJECT OF FALLING OFF THE MAP SOME LONELY PLACES OF THE WORLD KNOPF 190 PAGES 20 BY PICO IYER MR IYER A MUCHTRAVELED JOURNALIST AND AUTHOR WRITES THAT LONELINESS IS THE SHARED CONDITION OF SUCH DISPARATE SPOTS AS NORTH KOREA ICELAND CUBA AND PARAGUAY IN TIME THEIR LONELINESS MAKES THEM STRANGER AND THEIR STRANGENESS MAKES THEM LONELIER HE WRITES DO THEY STILL PLAY TETHERBALL IN THE STATES ASKS A CUBAN GOVERNMENT OFFICIAL IN PERFECT EISENHOWERERA ENGLISH BY CHOICE OR CIRCUMSTANCE THESE PLACES FALL OUTSIDE THE REACH OF PACKAGED TOURS FOR VACATIONERS AND TALKFESTS FOR ECONOMISTS BANKERS AND DIPLOMATS THUS ISOLATED THEY ARE INCUBATORS FOR WILD PRETENSES AND BIZARRE JUXTAPOSITIONS NOR IS THE WORLD IN DANGER OF RUNNING OUT OF LONELY PLACES DESPITE THE END OF THE COLD WAR CNN AND ALL THE OTHER THINGS THAT WERE SUPPOSED TO MAKE THE PLANET A SANE CLOSEKNIT PLACE NORTH KOREA FOR EXAMPLE CHURNS OUT TRAVEL BROCHURES PROMOTING THE SEALEDOFF COMMUNIST ENCLAVE AS A HAVEN FOR GOLFERS AND CHILDREN BUT VISITORS WINGING THEIR WAY IN ARE WARNED IN THE STATESANCTIONED AIRLINE MAGAZINE THAT IF YOU TALK IN THE DAY TIME YOU'LL BE HEARD BY A BIRD AND AT NIGHT BY A RAT SIGHTSEEING CONSISTS OF PACING GRAY MEGALITHS HONORING KIM IL SUNG THE LONGTIME DICTATOR AND OCTOGENARIAN MADMAN VISITORS ARE REMINDED AGAIN AND AGAIN OF THE SUCCESS OF THE SOCIALIST EXPERIENCE IN NORTH KOREA IN THIS COMMUNIST PARADISE EVEN THE WEATHER HAS HAD TO FOLLOW ORDERS AND IMPROVE ITSELF SO THAT NOW DESPITE BITTER WINTERS STATE LITERATURE ANNOUNCES THERE ARE NO EXTREMES OF HOT OR COLD BUT NOT ALL OF MR IYER'S LONELY SPOTS ARE SO RECLUSIVE OR NATIONALISTIC INDEED SOME ARE CLEARLY INFLUENCED BY OTHER CULTURES DURING A BOUT OF RAGING INFLATION ARGENTINA CLINGS TO A SELFCONSCIOUSLY EUROPEAN IDENTITY ITS CAFES TEEMING WITH BOTTLE BLONDES ITS BUSINESSMEN TALKING OF OLD ETONIAN TIES IN PARAGUAY AN ANNOUNCED DISPLAY OF LOCAL CULTURE FEATURES SONGS FROM MEXICO CUBA AND PERU IN FAROFF MELBOURNE SIGNS FOR TOILETS COME IN GREEK AND KOREAN AND A MULTILINGUAL PAMPHLET ON CONDOM USE CARRIES INSTRUCTIONS IN MACEDONIAN AMONG OTHER TONGUES OPEN OR CLOSED MR IYER'S PLACES BETRAY THE SENSE THAT THINGS HAVE GONE SOMEWHAT SQUIRRELLY IN BHUTAN THE YOUNG KING LOVES PROFESSIONAL BASKETBALL AND SPENDS MOST AFTERNOONS SHOOTING HOOPS BEDECKED IN CEREMONIAL ROBES IN BUENOS AIRES THE LEISURECLASS MAINTAINS AN OUTWARD INSOUCIANCE BUT TALKS OF THE LATEST ANTIDEPRESSANTS AT A FADED SEASIDE HOTEL IN CUBA THE MANAGEMENT OFFERS COCKTAIL LESSONS EVERY MONDAY AT 430 PARAGUAY'S HOTELS ARE UNUSUALLY ECCENTRIC PLACES A SUDDEN THUNDERSTORM TURNS THE HALLS IN THE GRAN HOTEL INTO RIVERS WITH DEAD LEAVES FLOATING PAST THE AUTHOR'S DOOR A MOVE TO THE OASIS BRINGS OTHER PROBLEMS A RECEPTIONIST ASKS HOW MANY HOURS HE PLANS TO STAY AND SHOWS HIM TO A BARELY FURNISHED ROOM WHERE ONE WALL IS ENTIRELY COVERED WITH FLESH PHOTOS ALWAYS A KEEN EYE MR IYER IS AT HIS BEST WHEN HE'S SWEPT AWAY BY SOME ASPECT OF A PARTICULAR DESTINATION HIS CATALOG OF UNIQUE AUSTRALIAN CREATURES COULD HAVE COME FROM ANY GUIDE TO THAT COUNTRY MORE MEMORABLE IS HIS DESCRIPTION OF THE ALMOST MYSTICAL LIGHT OF ICELAND SUMMERS OR THE WISTFUL SADNESS OF CUBAN GRANDMOTHERS ICELAND WHERE MR IYER FINDS AN EPIDEMIC ODDNESS PROVIDES A MARVELOUS STEW OF NUTTY LAWS DOGS ARE ILLEGAL IN THE CAPITAL UNCANNY SILENCES AND 3 AM NAKED SWIMS IN OPENAIR POOLS THERE THE AUTHOR SEEMS TO HIT UPON THE GIST OF WHY LONELY PLACES ARE SO FASCINATING SOMETIMES IT FEELS AS IF THE LAND ITSELF INVITES YOU ALMOST TO SEE IN ITS CHANGING MOODS A REFLECTION OF YOUR OWN AND IN THE TURNING OF THE SEASONS SOME DEEPER INNER SHIFT FROM LIGHT TO DARK SUCH THOUGHTS AREN'T LIMITED TO VISITORS WAXING ROMANTIC IN A STRANGE LAND MR IYER REPORTS THAT A CAR MECHANIC IN ICELAND TOLD HIM THAT DURING THE MONTHS OF DAYLONG DARKNESS LOCAL PEOPLE HAVE MUCH TIME TO THINK OF GOD AND OF OTHER THINGS IN THAT DIRECTION IN THE END MR IYER'S BOOK IS A CELEBRATION OF PLACES THAT AREN'T INCLINED TO PURGE THEIR OWN PECULIARITIES TO ACCOMMODATE THE EXPECTATIONS OF THE REST OF THE WORLD OR PROVIDE FOR THE COMFORT OF VISITORS EVEN FOR PLACES WITH GRUBBY OR WEIRD PERSONALITIES THAT'S SOMETHING OF A VIRTUE BESIDES WITH PRAGUE CHOKED WITH VISITORS AND THE UFFIZI PARTIALLY SHUTTERED FOR BOMB REPAIRS WHY NOT CONSIDER A SUMMER BREAK IN PYONGYANG OR REYKJAVIK MR CARRINGTON IS AN EDITOR IN THE JOURNAL'S WASHINGTON BUREAU 9307230062 930723 AMGEN EARNINGS JUMP 40 HELPED BY SPECIAL AWARD BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL AMGEN INC REPORTED A 40 JUMP IN SECONDQUARTER NET INCOME TO 1002 MILLION BOOSTED BY A 139 MILLION PRETAX LEGAL AWARD AND BY UNEXPECTEDLY STRONG WORLDWIDE SALES OF THE COMPANY'S NEUPOGEN CANCERTREATMENT DRUG EXCLUDING THE LEGAL AWARD EARNINGS WERE 916 MILLION OR 64 CENTS A SHARE A NICKEL ABOVE ANALYSTS' CONSENSUS FORECASTS NET INCOME WAS EQUAL TO 70 CENTS A SHARE IN THE YEAREARLIER QUARTER NET INCOME WAS 716 MILLION OR 49 CENTS A SHARE REVENUE IN THE LATEST PERIOD CLIMBED 31 TO 3431 MILLION FROM 2613 MILLION ANALYSTS SAID THEY WERE REASSURED THAT NEUPOGEN SALES CONTINUE TO REGAIN MOMENTUM AFTER STUMBLING IN JANUARY APPARENTLY DUE TO SLACK DEMAND DURING THE PRECEDING HOLIDAY SEASON NEUPOGEN SALES ARE SCRUTINIZED BY ANALYSTS AS THE MAIN DRIVER OF AMGEN'S GROWTH US SALES OF THE DRUG ROSE 36 IN THE SECOND QUARTER TO 1384 MILLION FROM 1019 MILLION A YEAR EARLIER INTERNATIONAL SALES ALSO EXCEEDED ANALYSTS' FORECASTS SPURTING 91 TO 494 MILLION FROM 258 MILLION COMMERCIAL SALE OF THE DRUG IN THE US BEGAN IN EARLY 1991 THE SALES NUMBERS GO A LONG WAY TOWARD CLEARING UP UNCERTAINTY OUT THERE BUT WE'LL NEED ANOTHER COUPLE OF QUARTERS GOING FORWARD TO GET COMFORTABLE WITH WHAT THE REAL TREND IS SAID JEFFREY W CASDIN AT OPPENHEIMER & CO AFTER ADJUSTING FOR THE JANUARY SHORTFALL THE GROWTH RATE IN DOMESTIC NEUPOGEN SALES APPEARS TO BE ABOUT 20 A YEAR HE SAID AMGEN CAUTIONED ANALYSTS AGAINST EXTRAPOLATING SALES TRENDS FROM THE LATEST QUARTER WHOLESALERS' INVENTORIES WERE ABNORMALLY LOW AT THE END OF THE FIRST QUARTER BY THE END OF THE SECOND QUARTER THEY WERE SOMEWHAT ON THE HIGH SIDE SAID LOWELL E SEARS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OVERSTOCKING COULD DEPRESS FUTURE DEMAND HE SAID THE LEGAL AWARD WAS FROM A PREVIOUSLY REPORTED SETTLEMENT OF A PATENT DISPUTE WITH GENETICS INSTITUTE INC OVER RIGHTS TO THE ANEMIA DRUG ERYTHROPOIETIN AMGEN SELLS THE DRUG UNDER THE BRAND NAME EPOGEN FOR TREATMENT OF KIDNEYDIALYSIS PATIENTS MOST PATIENTS WHO NEED EPOGEN ARE RECEIVING IT SO SALES GROWTH IS MOSTLY LIMITED TO NEW DIALYSIS PATIENTS EPOGEN SALES IN THE QUARTER ROSE ABOUT 14 TO 140 MILLION FROM 1226 MILLION A YEAR EARLIER FOR THE SIX MONTHS NET INCOME SPURTED 41 TO 1895 MILLION OR 131 A SHARE AFTER A 87 MILLION GAIN FOR A TAXRELATED ACCOUNTING CHANGE YEAREARLIER NET INCOME WAS 1349 MILLION OR 91 CENTS A SHARE REVENUE ROSE 36 TO 6534 MILLION FROM 4815 MILLION 9307230061 930723 PILOTS SET TO STRIKE AT COMMUTER CARRIER OPERATED BY AMR UNIT FORT WORTH TEXAS PILOTS AT AMERICAN EAGLE'S FLAGSHIP AIRLINES VOTED TO SUPPORT A STRIKE IF A NEW CONTRACT AGREEMENT ISN'T REACHED BY 1201 AM EDT TOMORROW AMERICAN EAGLE A UNIT OF AMR CORP OPERATES COMMUTER AIRLINES WITH FLIGHTS CONNECTING TO SOME OF THE HUBS OF ITS CORPORATE SIBLING AMERICAN AIRLINES FLAGSHIP AND ITS ALLIED PILOTS ASSOCIATION UNION ARE AT THE END OF A 30DAY COOLINGOFF PERIOD AND ARE IN ADVANCED MEDIATION TALKS AS THE END OF THAT PERIOD NEARS WHEN IT DOES EXPIRE HOWEVER FLAGSHIP IS FREE TO IMPOSE ITS OWN CONTRACT ON THE PILOTS AND THE PILOTS ARE FREE TO STRIKE ABOUT 98 OF FLAGSHIP'S 1200 PILOTS VOTED TO SUPPORT A STRIKE IF ONE IS CALLED AN AMR SPOKESMAN SAID HE WASN'T SURE HOW LIKELY THAT WOULD BE WE'RE DISCOURAGED THAT THE TALKS ARE STILL VERY SLOW BUT WE STILL HOPE WE CAN GET AN AGREEMENT HE SAID THE TWO SIDES ARE APPARENTLY NOT VERY CLOSE IN THEIR OFFERS STARTING SALARIES FOR FLAGSHIP FIRST OFFICERS ARE ABOUT 13500 A YEAR AND A THIRD OF THE 1200 PILOTS MAKE LESS THAN 16000 ACCORDING TO THE APA THE FLAGSHIP PILOTS ARE SIMPLY ASKING FOR PARITY WITH OTHER LEADING REGIONAL AIRLINES SAID APA PRESIDENT RICH LAVOY IN A STATEMENT THE UNION WANTS HIGHER WAGES AND SOME WORK RULE CHANGES THE AMR SPOKESMAN HOWEVER SAID THAT THE APA'S CONTRACT PROPOSAL IS OUT OF LINE WITH REGIONAL INDUSTRY STANDARDS FLAGSHIP SERVES 98 CITIES THROUGHOUT THE EASTERN US PRIMARILY AROUND AMERICAN'S HUBS IN NASHVILLE TENN RALEIGH/DURHAM NC NEW YORK AND MIAMI 9307230060 930723 FORD PLANNING TO IDLE PLASTIC TRIM FACILITY DETROIT FORD MOTOR CO SAID IT IS CONSOLIDATING ITS PLASTIC AND TRIM OPERATIONS BY IDLING A PLANT IN MOUNT CLEMENS MICH THAT EMPLOYS 554 PEOPLE THE COMPANY SAID ALL OF THE EMPLOYEES WILL BE TRANSFERRED TO JOBS WITHIN FORD MOST OF THEM TO THE AUTO MAKER'S TWO REMAINING PLASTIC AND TRIM UNITS IN MICHIGAN FORD SAID IT PLANS TO SPEND 50 MILLION TO UPGRADE AND MODERNIZE THE TWO REMAINING PLASTIC AND TRIM PLANTS WHICH ARE IN CHESTERFIELD TOWNSHIP AND UTICA MICH FORD SAID IT HAS NO IMMEDIATE PLANS FOR THE MOUNT CLEMENS PLANT SEPARATELY FORD SAID IT HAS BEEN OPERATING DAILY OVERTIME THIS WEEK AT CAR ASSEMBLY PLANTS IN ATLANTA CHICAGO AND LORAIN OHIO AND ALL BUT A FEW OF ITS US TRUCK ASSEMBLY PLANTS OVERALL THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD A TOTAL OF 116548 CARS AND TRUCKS THIS WEEK UP 38 FROM THE 112319 VEHICLES BUILT IN THE SAME WEEK A YEAR AGO 9307230059 930723 YOUR MONEY MATTERS WEEKEND REPORT BONING UP ON THE STUFF YOU REALLY DO NEED TO KNOW BY ELLEN E SCHULTZ SO NOW YOU KNOW WHAT YOU DON'T NEED TO KNOW BUT WHAT DO YOU REALLY NEED TO KNOW THE EXPERTS SAY INVESTORS DO NEED TO KNOW THE DIFFERENCE BETWEEN STOCKS BONDS AND CASH INVESTMENTS AND HOW TO INVEST IN THESE THROUGH MUTUAL FUNDS THIS MEANS KNOWING BASIC INVESTMENT PRINCIPLES SUCH AS ASSET ALLOCATION THE IMPORTANCE OF COMPOUNDING AND REDUCING RISK THROUGH DIVERSIFICATION AS A PRACTICAL MATTER YOU NEED TO KNOW HOW TO TRACK PERFORMANCE WHAT BENCHMARKS TO COMPARE RETURNS TO AND WHETHER INVESTMENT FEES AND COMMISSIONS ARE ON THE HIGH OR LOW SIDE IF YOU KNOW ALL THAT YOU'LL BE AHEAD OF 98 OF THE INVESTING PUBLIC AND WILL BE ABLE TO MAKE INFORMED CHOICES ABOUT YOUR INVESTING STRATEGY AND YOUR EMPLOYER'S RETIREMENT PLAN WANT TO BONE UP SOME USEFUL FREE BROCHURES ON INVESTING ARE AVAILABLE FROM T ROWE PRICE ASSOCIATES INC VANGUARD GROUP CHARLES SCHWAB CORP AND IDS FINANCIAL SERVICES OR FOR ONESTOP SHOPPING GET MAKING THE MOST OF YOUR MONEY BY JANE BRYANT QUINN THE BEST ALLAROUND BOOK ON INVESTING AND PERSONAL FINANCE ON THE MARKET AND IF YOU WANT TO LEARN HOW TO PICK INDIVIDUAL STOCKS GET PETER LYNCH'S ONE UP ON WALL STREET SEE RELATED STORY YOUR MONEY MATTERS WEEKEND REPORT WHAT YOU DON'T NEED TO KNOW ABOUT INVESTING WSJ JULY 23 1993 9307230058 930723 ENTERPRISE FIRMS INNOVATE TO GET IT FOR YOU WHOLESALE BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL WHOLESALERS ARE SUDDENLY DOING A WHOLE LOT MORE TO SELL THEMSELVES BATTERED BY A WEAK ECONOMY AND SHRINKING PROFITS MANUFACTURERS ARE SHOPPING AROUND FOR CHEAPER AND MORE EFFICIENT WAYS TO MOVE THEIR GOODS AS A RESULT THE WHOLESALE INDUSTRY'S 300000 MOSTLY SMALL OPERATORS ARE LOSING MARKET SHARE FOR THE FIRST TIME IN A DECADE TO FACTORY OUTLETS MAILORDER CATALOGS WAREHOUSE CLUBS MASS MERCHANDISERS AND OTHER RIVALS BUT WHOLESALERS ARE FIGHTING BACK BY REDEFINING THEIR MIDDLEMAN'S ROLE TO SOLIDIFY THEIR RELATIONSHIPS WITH CLIENTS THEY ARE DOING EVERYTHING FROM ARRANGING HOWTO SEMINARS TO SPEEDING WARRANTYCLAIM PROCEDURES THEY ARE FORGING EXCLUSIVE DISTRIBUTION PACTS WITH BIG COMPANIES THEY ARE STREAMLINING AND MORE THAN EVER THEY ARE PLANNING FOR THE LONG TERM SAFETY EQUIPMENT CO A TAMPA FLA DISTRIBUTOR OF INDUSTRIALSAFETY SUPPLIES WITH 30 MILLION IN ANNUAL SALES FORMED A PARTNERSHIP WITH A MAJOR CUSTOMER TWO YEARS AGO THAT TAKES IT FAR BEYOND THE WHOLESALER'S TRADITIONAL ACTIVITIES IN RETURN FOR THE RIGHT TO BE THE SOLE SUPPLIER OF SAFETY SUPPLIES FOR TAMPA ELECTRIC CO SAFETY EQUIPMENT GUARANTEES NEXTDAY DELIVERY FILES MONTHLY PERFORMANCE REPORTS AND PUBLISHES A CUSTOMIZED PRODUCT CATALOG FOR THE UTILITY'S PURCHASING DEPARTMENT IT ALSO HAS ARRANGED FOR SUPPLIERS TO PERFORM FIREINSPECTION SURVEYS AT POWER PLANTS AND HOLD SAFETYEQUIPMENT SEMINARS FOR THE UTILITY'S EMPLOYEES THROUGH PARTNERSHIPS WITH SAFETY EQUIPMENT AND SIX OTHER WHOLESALERS THE UNIT OF TECO ENERGY INC HAS IMPROVED THE QUALITY OF THE GOODS IT PURCHASES WHILE ALSO SAVING 370000 ANNUALLY SAYS PROCUREMENT MANAGER MARNEY SCHROCK SAFETY EQUIPMENT MEANWHILE HAS DOUBLED SALES TO TAMPA ELECTRIC TO 500000 ANNUALLY SAYS DAVID CRANNELL THE WHOLESALER'S PRESIDENT MR CRANNELL SAYS HIS COMPANY FORMED THE ALLIANCE IN RESPONSE TO COMPETITIVE PRESSURES AND HAS NEGOTIATED DOZENS OF SIMILAR AGREEMENTS THAT NOW ACCOUNT FOR 35 OF ITS REVENUE IN THE CURRENT MARKET FOR WHOLESALERS TO BE COMPETITIVE YOU HAVE TO BE COOPERATIVE HE SAYS PEOPLE WHO AREN'T ARE OUT THERE FIGHTING ON PRICE ALONE AND THAT'S GETTING TO BE LESS AND LESS PROFITABLE A RECENT STUDY BY ARTHUR ANDERSEN & CO AND THE NATIONAL ASSOCIATION OF WHOLESALERDISTRIBUTORS SHOWS JUST HOW COMPETITIVE THE MARKET HAS BECOME MANUFACTURERS PARTICIPATING IN THE STUDY PROJECTED THAT WHOLESALERS' SHARE OF PRODUCER SHIPMENTS WILL FALL TO 36 AT THE END OF THE DECADE FROM 42 IN 1992 REPRESENTING LOST REVENUES OF 108 BILLION THE REVERSAL COMES AFTER 10 YEARS OF GROWTH IN SUCH AN ENVIRONMENT WE'RE GOING TO SEE SOME CASUALTIES SAYS STEVE SAMEK AN ARTHUR ANDERSEN PARTNER BUT THERE'S ALSO OPPORTUNITY AT EVERY LEVEL FOR THOSE WHO PAY ATTENTION TO THE FUNDAMENTALS WHOLESALERS MUST BOOST PRODUCTIVITY IN A FLAT ECONOMY TO HOLD OR IMPROVE GROSS MARGINS AND ULTIMATELY THE BOTTOM LINE ADDS RON SCHREIBMAN EXECUTIVE DIRECTOR OF THE RESEARCH ARM OF THE NATIONAL ASSOCIATION OF WHOLESALERDISTRIBUTORS IN A MATURE OR SLOW ECONOMY COVERING UP PROBLEMS WITH MORE SALES IS NOT AN OPTION THE ONETWO PUNCH OF A WEAK ECONOMY AND NEW COMPETITION IS FORCING MANY FIRMS TYPICALLY FAMILYRUN CONCERNS THAT HAVE GOTTEN BY WITH LITTLE OR NO LONGTERM PLANNING TO PLOT BUSINESS STRATEGY FOR THE FIRST TIME SECURITY PRODUCTS LONGRANGE PLANNING IS NOW ONE OF MY MAJOR TASKS AS CEO SAYS VIRL MULLINS PRESIDENT OF ARMSTRONG'S LOCK & SUPPLY INC AN ATLANTA DISTRIBUTOR OF SECURITY PRODUCTS WITH ABOUT 13 MILLION IN ANNUAL SALES IF YOU DON'T KNOW WHERE YOU'RE GOING SAYS MR MULLINS WHOSE FATHERINLAW FOUNDED THE COMPANY IN 1961 IT'S REALLY HARD TO GET THERE CONTRACTORS SUPPLY CO THINKS IT KNOWS HOW TO GET THERE THE KANSAS CITY MO CONSTRUCTIONEQUIPMENT AND SUPPLIES DISTRIBUTOR WHICH HAD 35 MILLION IN SALES LAST YEAR SAYS IT IS FACING RISING COMPETITION FROM MASS MERCHANDISERS SUCH AS THE BUILDERS SQUARE DIVISION OF KMART CORP WE KNOW WE'RE LOSING MARKET SHARE TO THOSE OPERATIONS SAYS CONTRACTORS SUPPLY'S PRESIDENT RICHARD KNOPKE UNABLE TO MATCH THE PRICES OF SUCH RETAILERS MR KNOPKE SAYS HE HOPES TO BEAT THEM IN OTHER WAYS SUCH AS BY SIMPLIFYING THE PROCESS FOR FILING A WARRANTY CLAIM CURRENTLY HE SAYS CONTRACTORS SUPPLY MUST FILE FOR EVERY CLAIM THEN FIGHT WITH THE MANUFACTURER OVER NICKELS AND DIMES BEFORE IT IS ISSUED A CREDIT INSTEAD HE WANTS HIS SUPPLIERS WHICH ARE CONSIDERING THE IDEA TO ISSUE ANNUALLY TO HIS COMPANY A YEAR'S WARRANTY CREDITS BASED ON THE AVERAGE ANNUAL VOLUME OF CLAIMS FROM THE THREE PRECEDING YEARS IN ADDITION TO SPEEDING THE ISSUING OF CREDITS TO HIS OWN CUSTOMERS MR KNOPKE SAYS THE IDEA WOULD LET HIM REASSIGN TWO FULLTIME CLAIMS PROCESSORS TO MOREPRODUCTIVE CUSTOMERSERVICE OR SALES JOBS BY NEXT YEAR MOREOVER MR KNOPKE HOPES TO INSTALL NEW COMPUTER SOFTWARE THAT PLACES ORDERS AS WELL AS PAYS AND COLLECTS BILLS ELECTRONICALLY THE NEW PROGRAM WOULD ALSO ALLOW HIM TO ANALYZE THE PROFITABILITY OF INDIVIDUAL ACCOUNTS AND TAILOR PRICES TO DIFFERENT MARKETS CONTRACTORS SUPPLY CURRENTLY CHARGES CUSTOMERS IN SMALLER TOWNS THE SAME PRICES PAID BY KANSAS CITY CLIENTS SALES SYSTEMS LTD A PORTSMOUTH VA DISTRIBUTOR OF INDUSTRIAL FASTENERS WITH ABOUT 20 MILLION IN ANNUAL SALES IS OFFERING SERVICES NOT FOUND AMONG THE PROLIFERATING ALTERNATIVES TO DISTRIBUTING GOODS SAYS WILLIAM CREECY PRESIDENT OVER THE PAST THREE YEARS MR CREECY SAYS SALES SYSTEMS HAS INVESTED 650000 IN PRODUCTTESTING LABS IN PORTSMOUTH AND ALLENTOWN PA TO TAKE OVER QUALITYCONTROL FUNCTIONS HIS CUSTOMERS USED TO PERFORM THE EXPANSION HAS INCREASED SALES BY 5 MILLION ANNUALLY SALES SYSTEMS IS EVEN DOING MINOR ASSEMBLY WORK FOR SOME MANUFACTURERS IN ONE CASE PACKAGING AND LABELING WITH BAR CODES SPAREPARTS KITS FOR INDUSTRIAL MACHINERY TWO YEARS AGO THE COMPANY ALSO DOUBLED THE SIZE OF ITS RICHMOND VA OPERATION TO SUPPLY INVENTORY ON A JUSTINTIME BASIS TO A UNIT OF ALLIEDSIGNAL INC MR CREECY SAYS DOING SO ALLOWS ALLIED TO STOCK LESS INVENTORY ITSELF THUS REDUCING SUCH COSTS AT JIMMIE JONES CO A WELDINGSUPPLIES DISTRIBUTOR WITH 35 MILLION IN ANNUAL SALES COOWNER PAUL BROCKWELL SAYS SLUMPING DEMAND HAD HEATED UP RIVALRIES AMONG WHOLESALERS LONG BEFORE THE NEW COMPETITORS ARRIVED WE HAD TO FIGURE OUT HOW WE WERE GOING TO KEEP OUR EXISTING CUSTOMERS AND BE MORE PRODUCTIVE HE SAYS TO INCREASE BUSINESS WITH EXISTING CUSTOMERS MR BROCKWELL SAYS HE BEGAN CREATING COMPUTERIZED PROFILES THAT DETAIL HIS CUSTOMERS' PREFERRED PRODUCTS AND DELIVERY SCHEDULES AS WELL AS THE LEVEL OF TECHNICAL ASSISTANCE THEY REQUIRE DURING THE FIRST HALF THIS YEAR SUCH EFFORTS CONTRIBUTED TO A 12 INCREASE IN NET INCOME AND A 9 RISE IN SALES HE SAYS WE WERE HANDLING EVERYBODY THE SAME MR BROCKWELL ADDS BUT SOME PEOPLE WANT THE BEST PRICE WHILE SOME ARE WILLING TO PAY MORE FOR FOURHOUR DELIVERY OR FOR SERVICE WHEN THEIR MACHINE BREAKS DOWN AT 10 AT NIGHT 9307230057 930723 BUSINESS BRIEF GRAND METROPOLITAN PLC DISTRIBUTION JOINT VENTURE ARRANGED IN EAST CARIBBEAN GRAND METROPOLITAN PLC SAID THAT IT HAS SET UP A JOINT VENTURE TO DISTRIBUTE ITS DRINKS IN THE EASTERN CARIBBEAN THE UK FOOD AND BEVERAGE GROUP SAID IN A PRESS RELEASE THAT ITS DRINKS UNIT INTERNATIONAL DISTILLERS & VINTNERS WILL HOLD 51 OF THE VENTURE THE REST WILL BE HELD BY HANSCHELL & INNISS A BARBADOS WINE AND SPIRITS DISTRIBUTOR GRAND MET SAID THE MOVE ALSO COVERS THE PURCHASE OF 50 OF THE COCKSPUR RUM BRAND FROM HANSCHELL & INNISS FINANCIAL DETAILS WEREN'T DISCLOSED THE JOINT VENTURE WILL DISTRIBUTE A VARIETY OF GRAND MET'S BRANDS INCLUDING SMIRNOFF AND POPOV VODKAS J&B SCOTCH WHISKY BAILEYS IRISH CREAM GILBEY'S AND BOMBAY GINS CINZANO VERMOUTH AND OTHERS HANSCHELL INNISS BRANDS COVERED BY THE ACCORD INCLUDE COCKSPUR PLUS A VARIETY OF GIN VODKA AND LIQUEUR PRODUCTS 9307230056 930723 BUSINESS BRIEF LITTON INDUSTRIES INC HEADQUARTERS WILL BE SOLD AS COMPANY PLANS A MOVE LITTON INDUSTRIES INC PLANS TO MOVE TO THE SAN FERNANDO VALLEY IN THE NORTHWEST PART OF LOS ANGELES AND IS LOOKING FOR BUYERS FOR ITS POSH BEVERLY HILLS CALIF HEADQUARTERS THE MOVE IS PART OF LITTON'S PLAN TO SPLIT ITS DEFENSE AND COMMERCIAL OPERATIONS INTO TWO SEPARATE COMPANIES DICK KOERBER A SPOKESMAN FOR LITTON SAID THE NEW COMMERCIAL COMPANY WILL MOVE OUT OF LITTON'S CURRENT HEADQUARTERS AS SOON AS POSSIBLE AFTER ITS ESTABLISHMENT AROUND THE END OF THE YEAR THE DEFENSE COMPANY WOULD EVENTUALLY FOLLOW SUIT PENDING SALE OF THE PROPERTY MR KOERBER SAID A LOCAL REAL ESTATE BROKER ESTIMATED THE MINIMUM VALUE OF LITTON'S 330000SQUARE FOOT PROPERTY AT 27 MILLION LITTON PROVIDES RESOURCE EXPLORATION SERVICES INDUSTRIALAUTOMATION SYSTEMS AND ELECTRONIC AND DEFENSE SYSTEMS 9307230055 930723 INTERNATIONAL BRIEF ANGLO AMERICAN CORP MINING HOUSE'S NET INCOME ROSE 20 IN SECOND QUARTER ANGLO AMERICAN CORP OF SOUTH AFRICA LTD SAID COMBINED SECONDQUARTER PROFIT OF ITS SIX GOLD MINES INCREASED 20 TO 2511 MILLION RAND 754 MILLION FROM 2098 MILLION RAND IN THE FIRST QUARTER AT A NEWS CONFERENCE GOLD DIVISION CHAIRMAN CLEM SUNTER SAID THE JOHANNESBURGBASED MINING HOUSE WOULDN'T BUY BACK GOLD SOLD FORWARD BECAUSE THERE WAS NO CERTAINTY HIGH PRICES WOULD PERSIST HOWEVER ANGLO ISN'T SELLING ITS CURRENT PRODUCTION FORWARD HE SAID BY SELLING THEIR PRODUCTION FORWARD MINING HOUSES LOCK IN AT TODAY'S PRICES AND PROTECT THEMSELVES AGAINST FUTURE PRICE DROPS FREE STATE CONSOLIDATED GOLD MINES LTD FREEGOLD ANGLO'S LARGEST GOLD MINE SAW ITS NET INCOME RISE 11 TO 1025 MILLION RAND IN THE SECOND QUARTER FROM 927 MILLION RAND IN THE PREVIOUS QUARTER FREEGOLD'S GOLD PRODUCTION WAS DOWN 21 TO 29429 KILOGRAMS FROM 30054 KILOGRAMS IN THE FIRST QUARTER THE MINE'S AVERAGE YIELD FELL 55 TO 443 GRAMS OF GOLD PRODUCED PER TON OF ORE MILLED FROM 469 GRAMS PER TON IN THE PREVIOUS QUARTER 9307230054 930723 INTERNATIONAL BRIEF SIEMENS AG CZECH SKODA ENTERS VENTURE WITH UNIT TO MAKE TURBINES GERMANY'S SIEMENS AG ANNOUNCED A JOINT VENTURE YESTERDAY BETWEEN ITS KWU POWERPLANT ENGINEERING DIVISION AND CZECH GROUP SKODA TO BUILD TURBINES THE TWO COMPANIES SIGNED A LETTER OF UNDERSTANDING WEDNESDAY UNDER WHICH KWU WILL HOLD 51 OF THE SKODA ENERGO JOINT VENTURE AND SKODA WILL HOLD 49 SKODA SPOKESMAN MICHAL KRAUS SAID SIEMENS'S INITIAL INVESTMENT IN THE VENTURE WILL BE 620 MILLION KORUNA 213 MILLION WHILE SKODA WILL INVEST 600 MILLION KORUNA THE CZECH NEWS AGENCY CTK REPORTED FURTHER CAPITAL INPUT IS POSSIBLE FROM BOTH SIDES MR KRAUS SAID THE JOINT COMPANY WILL BE BASED IN PILSEN IN THE CZECH REPUBLIC AND WILL EMPLOY 1500 PEOPLE SIEMENS SAID ADDING THAT STARTUP WILL BE IN THE NEAR FUTURE WHEN THAT'S COMPLETED SKODA ENERGO IS EXPECTED TO HAVE YEARLY SALES OF MORE THAN 2 BILLION CZECH KORUNA SKODA ENERGO WILL UPDATE SKODA'S TURBINE TECHNOLOGY AS WELL AS DEVELOP NEW TECHNOLOGY WITH SIEMENS ACCORDING TO SIEMENS ANOTHER GOAL IS TO SECURE NEW MARKETS FOR SKODA PRODUCTS BY USING SIEMENS'S WORLDWIDE BUSINESS NETWORK SIEMENS SAID 9307230053 930723 BUSINESS BRIEF MATSUSHITA ELECTRIC INDUSTRIAL CO COMPANY PLANS TO INTRODUCE FLATSCREEN TELEVISIONS SOON MATSUSHITA ELECTRIC INDUSTRIAL CO PLANS TO INTRODUCE TELEVISIONS BASED ON ITS COLOR FLAT PANEL DISPLAY TECHNOLOGY IN A FEW MONTHS A SPOKESMAN FOR THE TOKYOBASED JAPANESE CONSUMER ELECTRONICS GIANT SAID THE FLAT SCREENS WHICH ARE LESS THAN 10 CENTIMETERS FOUR INCHES THICK WILL MAKE POSSIBLE PICTURE FRAME TVS TO HANG ON WALLS AND SETS FOR CRAMPED QUARTERS THE SPOKESMAN SAID MATSUSHITA WILL ANNOUNCE DETAILS SOON HE SAID THE FLAT SCREENS HAVE APPLICATIONS NOT ONLY IN TV SETS BUT ALSO IN PERSONAL COMPUTERS WORKSTATIONS HIGH DEFINITION TELEVISIONS AND MULTIMEDIA DEVICES MATSUSHITA'S INITIAL PRODUCT THE SPOKESMAN INDICATED WILL BE A 14INCH TELEVISION PRODUCED IN VOLUME OF THOUSANDS OF UNITS A MONTH THE SPOKESMAN SAID THE FLAT SCREENS HAVE A HIGHER RANGE OF RESOLUTION AND BETTER COLOR THAN CONVENTIONAL COLOR LIQUID CRYSTAL DISPLAYS NOW IN USE FOR PORTABLE TV AND NOTEBOOKSTYLE PC SCREENS HE SAID CATHODE RAY TUBES ARE EXPECTED TO REMAIN THE STANDARD FOR CONVENTIONAL TELEVISIONS WHILE FLAT SCREENS CARVE A NICHE FOR A NEW GENERATION OF DISPLAYS INCLUDING THE PICTURE FRAME TV SETS MATSUSHITA HAS BEEN DEVELOPING THE TECHNOLOGY SINCE THE MID1970S AND UNVEILED A PROTOTYPE IN 1985 9307230052 930723 LETTERS TO THE EDITOR CLINTON DIDN'T EXPLODE' I WAS OFFENDED BY YOUR JUNE 15 PAGE ONE ARTICLE ABOUT JUDGE GINSBURG THE FINAL CHOICE THE STATEMENT AND THE PRESIDENT EXPLODED IN ANGER AT A REPORTER'S QUESTION IS A GROSS MISREPRESENTATION I SAW THE EVENT YOU DESCRIBED REPLAYED SEVERAL TIMES ON TV YOUR INTERPRETATION CANNOT BE JUSTIFIED 9307230051 930723 DOING THE DEAL THE DEFICITREDUCTION CONFERENCE WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON LABORS TO RECAPTURE DEMOCRATIC DEFECTORS FOR THE TAXBILL SHOWDOWN OF THE SIX SENATE APOSTATES NEVADA'S BRYAN AND ARIZONA'S DECONCINI ARE THOUGHT BY PARTY LEADERS TO BE POSSIBLE BACKERS NOW OF THE 38 HOUSE DISSIDENTS PENNSYLVANIA FRESHMEN MCHALE AND HOLDEN ARE SEEN AS RIPE FOR CONVERSION WHILE EDWARDS OF TEXAS AND DANNER OF MISSOURI WERE BELIEVED AVAILABLE IN A PINCH THE FIRST TIME AROUND TWO OTHER PROMISING PROSPECTS ARE NEW MEMBERS FARR OF CALIFORNIA AND BARCA OF WISCONSIN CHOSEN IN SPECIAL ELECTIONS THIS SPRING ALSO THOUGHT TO BE GETTABLE ARE SOME OF THE 11 SUBCOMMITTEE CHAIRMEN THREATENED WITH DISCIPLINARY ACTION AFTER VOTING AGAINST THE INITIAL BILL BUT THE DEMISE OF THE HOUSEPASSED BTU TAX HAS SOME EARLIER CLINTON ALLIES SUCH AS IOWA'S SMITH THREATENING TO BOLT SCOURING FOR A GOP VOTE THE WHITE HOUSE FOCUSES ON IOWA'S GRANDY BUT HE SAYS TELL CLINTON NOT TO CALL ME IT WON'T BE WORTH IT TARGETED DEMOCRATS SHRUG OFF ASSAULTS FROM ANTITAX FORCES MOST REPORT LITTLE RESPONSE TO THE ADS BEING RUN BY THE GOP AND OTHERS WE HAVEN'T HEARD MUCH OF ANYTHING ABOUT IT SAYS A SPOKESMAN FOR TEXAS REP STENHOLM TEXAS REP FROST'S OFFICE GETS FEWER THAN 10 CALLS NONE OF THEM FROM HIS CONSTITUENTS OHIO REP STRICKLAND LOGS TWO COMPLAINTS ABOUT THE ADS NONE ABOUT HIS VOTE AIDES TO ALABAMA REP BROWDER PREPARED A REPLY TO ATTACKS BY THE CONSERVATIVE CITIZENS FOR A SOUND ECONOMY BUT REPORT FAR FEWER CALLS THAN EXPECTED REP COPPERSMITH OF ARIZONA WHO LIKE BROWDER WAS TARGETED EVEN THOUGH HE VOTED AGAINST CLINTON THE FIRST TIME AROUND DISPARAGES THE EFFORTS SAYING THIS ISN'T GRASS ROOTS THIS IS ASTROTURF THE WHITE HOUSE HITCHES ITSELF TO THE FICKLE BOND MARKET CLINTON AND AIDES REPEATEDLY TAKE CREDIT FOR THE DECLINE IN LONGTERM INTEREST RATES AND WARN THAT IT COULD BE REVERSED IF CONGRESS DOESN'T STICK TO THE 500 BILLION DEFICITREDUCTION GOAL FED CHIEF GREENSPAN JOINS THE CHORUS TOO BENTSEN POINTS TO WALL STREET SPECULATION THAT THIS WEEK'S HICCUP IN LONGTERM INTEREST RATES WAS CAUSED BY FEARS THE BILL IS IN TROUBLE PRIVATELY THOUGH WHITE HOUSE AIDES WORRY THE VOLATILE BOND MARKET COULD TURN AGAINST THE PLAN IF MARKET ANALYSTS FIND GIMMICKS IN THE FINAL COMPROMISE AFTER SAYING THE MARKETS WOULD ACCEPT THE ROUGH NEIGHBORHOOD OF 500 BILLION ECONOMIC AIDE RUBIN INSISTS CLINTON ISN'T BACKING AWAY FROM THE TARGET DEMOCRATS SCRAMBLE TO PROVE THAT THE SIZE OF THIS YEAR'S DEFICITREDUCTION PACKAGE EXCEEDS THE 1990 BIPARTISAN ONE ALTHOUGH THE CONGRESSIONAL BUDGET OFFICE ORIGINALLY SAID THE 1990 DEAL CUT THE DEFICIT BY 496 BILLION IT SAYS ITS LAST BEST ESTIMATE IS NOW 482 BILLION MEDICAL SPECIALISTS SEEK TO ALTER TAXBILL PROVISIONS THAT WOULD CUT MEDICARE REIMBURSEMENTS FOR THEIR OVERHEAD EXPENSES AND PROVIDE MORE FAVORABLE TREATMENT TO LESSAFFLUENT GENERAL PRACTITIONERS FRED GRAEFE A LOBBYIST FOR A RADIOLOGISTS' GROUP ACCUSES THE PRIMARYCARE DOCTORS OF OVERREACHING TAXBILL CONFEREES HAVE YET TO SIGN OFF ON A NUMBER OF PROVISIONS EVEN THOUGH THEY WERE IDENTICAL IN BOTH BILLS THE REASON THEY MAY YET CHANGE AS PART OF AN OVERALL DEAL AMONG THE ITEMS ARE CLINTON'S PLAN TO CURB TRANSFERPRICING ABUSES BY FOREIGN FIRMS AND A PROVISION THAT WOULD RAISE TAXES ON WALL STREET FIRMS BY MAKING THEM VALUE SECURITIES HOLDINGS AT CURRENT MARKET PRICES NEW MATH TIRELESS SUPPLYSIDER JUDE WANNISKI PROMOTING A CAPITALGAINS TAX CUT URGES DOLE TO EMBED THE PLAN IN A DEFICITREDUCTION PACKAGE THAT CONGRESSIONAL SCOREKEEPERS SAY WOULD CUT THE DEFICIT BY ONLY 350 BILLION BUT THEN TO SIMPLY ANNOUNCE TO THE NATION THAT HIS EXPERTS SCORE IT AT SAY 1 TRILLION PLANES TRAINS AND TRUCKS SKIRMISH OVER THE PROPOSED FUELTAX INCREASE ADMINISTRATION OFFICIALS INCLUDING FAA CHIEFTOBE HINSON AND THE FEDERAL AIRLINE STUDY COMMISSION ALL VOICE SYMPATHY FOR EXEMPTING THE BATTERED AIRLINE INDUSTRY BUT THE BREAK IS STILL VULNERABLE TO A LASTMINUTE SCRAMBLE FOR REVENUES FIGURES COMPILED BY THE CENTER FOR RESPONSIVE POLITICS SHOW THAT AIRLINE PACS GAVE 636944 TO THE MEMBERS OF THE HOUSESENATE CONFERENCE COMMITTEE IN THE LAST ELECTION CYCLE MEANWHILE RAILROADS WHICH GAVE 1000248 TO CONFEREES YESTERDAY SUCCESSFULLY KILLED A SENATE PROVISION THAT WOULD HAVE PLACED REVENUES FROM THEIR SHARE OF THE PROPOSED FUELTAX HIKE INTO THE HIGHWAY TRUST FUND TRUCKERS WHO WANT TO KILL THE ENTIRE FUELTAX INCREASE AND WHO GAVE 661715 TO CONFEREES LIKED THE IDEA BUT DIDN'T FIGHT STRONGLY FOR IT MINOR MEMOS SEN GRAMM WRITES FORMER SEN TSONGAS TERMING HIS VIEWS ON THE DEFICIT DISENGAGED FROM REALITY AND CAPABLE OF BEING CUT UP BY A PLASTIC KNIFE THEN SIGNS THE LETTER YOURS RESPECTFULLY THE SENATE BACKS OFF A PROVISION THAT WOULD GIVE TAXPAYERS AN ANNUAL REPORT ON FEDERAL FINANCES 9307230050 930723 ABREAST OF THE MARKET INDUSTRIALS RETREAT 3018 POINTS ON PROGRAM SELLING BOND DROP BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LATE FUTURESRELATED PROGRAM SELLING AND BOND MARKET WEAKNESS FORCED STOCK PRICES TO SINK AND THE DOW JONES INDUSTRIAL AVERAGE TO RETREAT FROM ITS ALLTIME HIGH SET ON WEDNESDAY THE INDUSTRIAL AVERAGE GAVE UP 3018 POINTS OR 085 TO END AT 352522 AFTER STAYING JUST MODERATELY LOWER FOR MOST OF THE SESSION THE STANDARD & POOR'S 500STOCK INDEX FELL 267 POINTS TO 44451 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 134 POINTS TO 24626 BONDS WERE LOWER FOR MOST OF THE DAY AND EASED FURTHER FOLLOWING MORE CONGRESSIONAL TESTIMONY BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN DURING WHICH HE INDICATED THAT INTEREST RATES MUST RISE TO ENSURE ECONOMIC STABILITY THE LONG BOND SLIPPED 12/32 POINT PUSHING ITS YIELD UP TO 665 BONDS WERE HEAVY ALL DAY AND THAT KEPT STOCKS IN A NEGATIVE STATE THROUGHOUT THE SESSION SAID JOHN PELUSO HEAD OF BLOCK TRADING AT LEHMAN BROTHERS I FEEL THAT THE MARKET IS EXPERIENCING A HEALTHY PULLBACK FROM THE HIGHS IT MADE IN THE LAST FEW DAYS SAID ROBERT KAHAN PARTNER AND MANAGER OF EQUITY TRADING AT MONTGOMERY SECURITIES I EXPECT THE UPWARD TREND WILL CONTINUE TOMORROW BARRING ANY UNFORESEEN NEWS OBSERVERS SAID THAT THOUGH THE MARKET TOOK A BREAK FROM BEING EARNINGSDRIVEN CORPORATE PROFIT REPORTS WILL PROBABLY BE BACK IN THE SPOTLIGHT TODAY INVESTORS ALSO REMAIN CONCERNED OVER PRESIDENT CLINTON'S DEFICITREDUCTION PLAN AND ITS ACCOMPANYING TAX INCREASES MARKET WATCHERS SAID CONGRESSIONAL NEGOTIATORS CONTINUE TO HAGGLE OVER THE DETAILS OF THE BILL WHICH AIMS TO REDUCE THE DEFICIT BY 500 BILLION OVER FIVE YEARS ALFRED E GOLDMAN DIRECTOR OF RESEARCH AT AG EDWARDS & SONS SAID THAT DESPITE THE DROPOFF YESTERDAY HE IS STILL BULLISH THE STOCK MARKET WAS A LITTLE EXTENDED AFTER THE INDUSTRIALS HIT A NEW HIGH HE SAID IF IT WERE A TEENYBOPPER BULL IT WOULD CHARGE RIGHT THROUGH BUT SINCE THIS IS A THREEYEAR BULL MARKET IT IS MIDDLEAGED AND HAS TO TAKE TIME OUT TO REFRESH THIS IS A TIME OUT NOT A TOP OUT ON THE BIG BOARD DECLINERS SWAMPED ADVANCING ISSUES 1208 TO 767 VOLUME TOTALED 248080000 SHARES DOWN SLIGHTLY FROM 253300000 WEDNESDAY BLUE CHIPS WERE HARD HIT DEERE & CO FELL 1 1/8 TO 64 5/8 FORD MOTOR EASED 1 TO 52 1/2 GENERAL ELECTRIC DROPPED 1 TO 98 USXUS STEEL SHED 1 1/4 TO 36 3/8 AND MINNESOTA MINING & MANUFACTURING SANK 2 1/2 TO 108 3/4 A PAINEWEBBER DOWNGRADING TO NEUTRAL FROM ATTRACTIVE SENT COLGATEPALMOLIVE 2 POINTS LOWER TO 48 3/4 ON HEAVY VOLUME ON WEDNESDAY THE HOUSEHOLD PRODUCTS CONCERN SANK 2 1/2 TO 50 3/4 A UBS SECURITIES RATINGS CUT TO HOLD FROM BUY PUSHED RALSTON PURINA 2 LOWER TO 42 5/8 THE BROKERAGE FIRM REPORTEDLY CITED CONCERNS OVER THE CONSUMER PRODUCTS COMPANY'S FISCAL THIRDQUARTER EARNINGS DUE OUT MONDAY TOPPING THE MOSTACTIVE LIST WAS CHICAGO & NORTH WESTERN HOLDINGS WHICH PRICED A SECONDARY OFFERING OF 13712645 SHARES AT 1925 EACH THE FREIGHTHAULING COMPANY SLIPPED 3/8 TO 19 1/4 ON VOLUME OF FOUR MILLION SHARES ABOUT 175 TIMES THE NORMAL LEVEL LADENBURG THALMANN CUT ITS RATING ON LIZ CLAIBORNE TO SELL FROM HOLD WHICH SENT THE STOCK STUMBLING 1 1/2 TO 20 THE BROKERAGE FIRM CITED THE RECENT RESIGNATION OF THE COMPANY'S VICE CHAIRMAN JAY MARGOLIS WHICH IT SAID INDICATES SERIOUS TURMOIL HAYES WHEELS INTERNATIONAL GAINED 1 3/8 TO 25 3/8 AFTER WERTHEIM SCHRODER ANALYST TOM DONATELLI INITIATED COVERAGE OF THE COMPANY WITH A STRONG BUY RATING IN EARNINGS NEWS BLOCKBUSTER ENTERTAINMENT ADDED 1 3/4 TO 24 1/8 IN ACTIVE TRADING AFTER REPORTING IMPROVED SECONDQUARTER RESULTS OF 23 CENTS A SHARE UP FROM 17 CENTS A YEAR EARLIER ANALYSTS HAD PROJECTED THE OPERATOR OF VIDEO RENTAL STORES WOULD EARN 22 CENTS A SHARE FOR THE PERIOD MCDERMOTT INTERNATIONAL A SUPPLIER OF FOSSIL FUEL STEAMGENERATING SYSTEMS ADVANCED 2 1/2 TO 30 7/8 FOLLOWING ITS RELEASE OF IMPROVED FISCAL FIRSTQUARTER EARNINGS THE COMPANY EARNED 48 CENTS A SHARE COMPARED WITH OPERATING PROFIT OF FIVE CENTS A SHARE A YEAR EARLIER WALL STREET HAD PROJECTED EARNINGS OF JUST 34 CENTS A SHARE ALBANY INTERNATIONAL JUMPED 1 3/4 TO 18 1/4 AFTER REPORTING NET INCOME OF 17 CENTS A SHARE FOR THE SECOND QUARTER THE ENGINEERED FABRICS MAKER POSTED A LOSS OF TWO CENTS A SHARE A YEAR AGO SECONDQUARTER EARNINGS ABOVE ANALYSTS' ESTIMATES OF 18 CENTS A SHARE DROVE FISHERPRICE 1 5/8 HIGHER TO 22 3/4 THE TOY MANUFACTURER EARNED 20 CENTS COMPARED WITH 27 CENTS A YEAR AGO GENERAL INSTRUMENT CLIMBED 1 5/8 TO 43 AFTER REPORTING THAT SECONDQUARTER EARNINGS WERE 20 CENTS A SHARE COMPARED WITH A LOSS OF 23 CENTS A SHARE ON A CHARGE THE YEAR BEFORE COWEN & CO ANALYST JIM KEDERSHA RAISED HIS SIXTONINEMONTH PRICE TARGET ON THE ELECTRONIC EQUIPMENT MAKER TO 53 FROM THE LOW 40S ELSEWHERE CITIZENS UTILITIES CLASS A SHARES WERE UNABLE TO ADVANCE ON A LATEAFTERNOON POSITIVE FISCAL SECONDQUARTER EARNINGS OUTLOOK THE COMPANY'S SHARES FELL 1 3/4 TO 28 1/4 IN THE WAKE OF A RATE INCREASE BY THE STATE OF ARIZONA EARLIER THIS WEEK OF 52 LOWER THAN THE 13 CITIZENS HAD REQUESTED 9307230049 930723 COMMODITIES OIL PRICES TUMBLE AS QUOTA DISPUTE ESCALATES BETWEEN TOP PRODUCERS SAUDI ARABIA AND IRAN BY BHUSHAN BAHREE AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL NEXT WEEK'S EMERGENCY OPEC MEETING IS SHAPING UP AS THE STAGE FOR A BIG FIGHT BETWEEN SAUDI ARABIA AND IRAN OVER OIL OUTPUT LEVELS RAISING MAJOR DOUBTS ABOUT WHETHER IT WILL EVER BE HELD WORLD OIL PRICES FELL AS A RESULT THE FUTURES PRICE OF SEPTEMBER CRUDE OIL DROPPED 30 CENTS TO SETTLE AT 1763 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE JEAN PING GABON'S OIL MINISTER AND PRESIDENT OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAD PLANNED TO OPEN THE MEETING WEDNESDAY IN VIENNA TO TRY TO PROP UP THE PRICE OF OIL WHICH HAS BEEN FALLING FOR WEEKS BECAUSE OF OPEC'S OVERPRODUCTION BUT ON A QUICK TOUR OF OPEC'S PERSIAN GULF MEMBERS TO PREPARE FOR THE CONFERENCE MR PING APPARENTLY FLEW INTO A MIDEAST OIL WAR BEING WAGED BY THE TWO LARGEST EXPORTERS THE FIRST CASUALTY APPEARED TO BE HIS PLAN FOR THE EMERGENCY MEETING TO GET THE OIL MINISTERS TO COME TO GRIPS WITH THE OIL GLUT BY LATE YESTERDAY EVIDENCE WAS MOUNTING THAT HISHAM NAZER THE INFLUENTIAL SAUDI OIL MINISTER HAD SUCCESSFULLY SOUGHT TO AVOID A PUBLIC CONFRONTATION WITH HIS IRANIAN COUNTERPART GHOLAMREZA AGHAZADEH BY PERSUADING MR PING NOT TO HOLD THE MEETING NEITHER THE SAUDIS NOR OPEC WOULD OFFICIALLY CONFIRM SUCH A DEVELOPMENT BUT MR PING SUGGESTED THE POSSIBILITY OF POSTPONING THE OPEC CONFERENCE AFTER HE MET WITH MR NAZER IN SAUDI ARABIA ALSO IN A PHONE INTERVIEW EARLIER YESTERDAY AN INDIVIDUAL IN SAUDI ARABIA CONFIRMED THAT THE KINGDOM ISN'T KEEN ON THE IDEA OF AN EMERGENCY MEETING HE IDENTIFIED TWO PROBLEMS CONFRONTING THE OIL EXPORTERS THE NEED TO ACCOMMODATE IRAQI OIL WHENEVER THE UNITED NATIONS ALLOWS THAT COUNTRY TO EXPORT AGAIN AND THE NEED TO REDUCE OUTPUT NOW TO SUPPORT WEAK OIL PRICES THE SAUDI INDIVIDUAL MAINTAINED THAT OPEC COULDN'T ACT ON THE IRAQI OIL UNTIL THE UN ALLOWED IRAQ TO EXPORT AGAIN HE ADDED THAT COUNTRIES THAT WERE PRODUCING BEYOND THEIR QUOTAS MAINLY IRAN AND NIGERIA ALTHOUGH HE DIDN'T IDENTIFY THEM SIMPLY HAD TO CUT THEIR OUTPUT TO AGREED LEVELS AND ANNOUNCE THEY WERE DOING SO YOU DON'T NEED A MEETING FOR THAT HE SAID IN ANOTHER DEVELOPMENT YESTERDAY MR NAZER IN AN OFFICIAL GOVERNMENT STATEMENT BLAMED THE OIL MARKET'S VOLATILITY ON CONTINUED QUOTA VIOLATIONS BY SOME OPEC COUNTRIES HE SAID THE BEST SOLUTION TO THE PROBLEM IS FOR THESE COUNTRIES TO RETURN IMMEDIATELY TO THEIR ASSIGNED QUOTAS MONITORING OF OPEC OUTPUT CONFIRMS THAT THE KINGDOM IS KEEPING WITHIN ITS QUOTA OF EIGHT MILLION BARRELS A DAY NEVERTHELESS SINCE OPEC'S ANNOUNCEMENT OF THE MEETING SEVERAL MEMBER NATIONS HAVE BEGUN CALLING ON SAUDI ARABIA TO REDUCE ITS HUGE VOLUMES THE LEADING SPOKESMAN FOR THAT GROUP IS MR AGHAZADEH OF IRAN THE IRANIANS MEANWHILE OFTEN ARE CITED WITHIN THE INDUSTRY AS OPEC'S CHAMPION QUOTA CHEATERS THEY ARE DOING AS MUCH AS THEY CAN SAID CONRAD GERBER PRESIDENT OF PETROLOGISTICS LTD A GENEVABASED MONITOR OF OPEC PRODUCTION HE ESTIMATED THAT IRAN'S OUTPUT FOR THE MONTH WILL AVERAGE 38 MILLION BARRELS A DAY UP FROM 37 MILLION A DAY IN JUNE AND WELL ABOVE IRAN'S THIRDQUARTER QUOTA OF 33 MILLION IN OTHER COMMODITY MARKETS YESTERDAY GRAINS PRICES OF SOYBEAN FUTURES CONTRACTS JUMPED AMID FORECASTS FOR WAVES OF FIERCE STORMS ACROSS SODDEN PARTS OF THE MIDWEST THROUGH THE WEEKEND PRICES JUMPED ON SPECULATION THAT THE STORMS WHICH ARE EXPECTED TO PRODUCE SEVERAL INCHES OF RAIN WILL DROWN MORE FIELDS AND FURTHER DELAY THE MATURATION OF CROPS THAT ARE ALREADY SEVERAL WEEKS BEHIND SCHEDULE IN STATES SUCH AS IOWA MINNESOTA AND SOUTH DAKOTA IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY ROSE 10 CENTS A BUSHEL TO SETTLE AT 731 A BUSHEL CORN PRICES ALSO ROSE ON THE STORM FORECASTS WHILE WHEAT PRICES SETTLED MIXED SOYBEAN FUTURES PRICES HAVE CLIMBED ROUGHLY 10 SO FAR THIS MONTH AS GRAIN TRADERS AND THE GOVERNMENT ATTEMPT TO GAUGE THE AMOUNT OF CROP DAMAGE ACROSS THE WESTERN HALF OF FARM BELT THE AGRICULTURE DEPARTMENT EARLIER THIS MONTH LOWERED ITS MONTHLY SOYBEAN HARVEST ESTIMATE BY 34 TO 198 BILLION BUSHELS ESTIMATING DAMAGE IS DIFFICULT BECAUSE THE SOYBEAN CROP IS RENOWNED FOR BOUNCING BACK FROM WEATHERRELATED STRESS IN PART BECAUSE THE PLANTS CAN REBLOOM GRAIN TRADERS HAVE BEEN MORE BOLD ABOUT SHAVING THE SIZE OF THE POTENTIAL CORN CROP IN PART BECAUSE THESE PLANTS HAVE JUST ONE SHOT AT REPRODUCTION THE RANGE OF ESTIMATES IS UNUSUALLY WIDE BECAUSE THE EXCESSIVE RAINFALL HAS LARGELY MISSED THE CORN BELT EAST OF CENTRAL ILLINOIS PARTS OF INDIANA OHIO AND KENTUCKY ARE EXPECTING LARGE CORN CROPS BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC SAID HE EXPECTS THE PRICE OF SOYBEAN CONTRACTS FOR NOVEMBER DELIVERY TO SWING BETWEEN 7 A BUSHEL AND 760 A BUSHEL THE PRICE OF THE DECEMBER CORN CONTRACT COULD MOVE BETWEEN 240 A BUSHEL AND 260 A BUSHEL HE SAID PRECIOUS METALS GOLD FUTURES ROSE RECOVERING SOME OF THEIR LOSSES FROM EARLIER THIS WEEK GOLD FOR AUGUST DELIVERY CLIMBED 180 TO 39130 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE TRADERS CITED CURRENCY INSTABILITY IN EUROPE AS A FACTOR DRAWING EUROPEAN INVESTORS TO BULLION OTHER PRECIOUS METALS WERE ALSO HIGHER SILVER FOR SEPTEMBER DELIVERY ROSE FIVE CENTS TO 5015 AN OUNCE ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR OCTOBER DELIVERY EDGED UP 260 TO 40660 AN OUNCE WHILE PALLADIUM FOR SEPTEMBER DELIVERY GAINED 30 CENTS TO CLOSE AT 13780 9307230048 930723 MUTUAL FUND FIRMS FUME OVER NEW YORK CITY REPORT NEW YORK MUTUAL FUND COMPANIES CRIED FOUL IN THE WAKE OF A CRITICAL REPORT ISSUED YESTERDAY BY THE NEW YORK CITY DEPARTMENT OF CONSUMER AFFAIRS THE AGENCY BLASTED DREYFUS CORP FRANKLIN RESOURCES AND CHARLES SCHWAB CORP FOR ALLEGEDLY ENGAGING IN DECEPTIVE MUTUALFUND ADVERTISING THE COMPANIES ARE ACCUSED OF VIOLATING THE CITY'S CONSUMER PROTECTION LAW WHICH CALLS FOR FINES OF UP TO 500 FOR EACH VIOLATION WE LOOKED AT A BROAD PURVIEW OF ADS AND DECIDED TO ACT ON THREE THAT WE FELT WERE THE MOST EGREGIOUS SAID RICHARD SCHRADER THE DEPARTMENT'S ACTING COMMISSIONER DREYFUS WAS CRITICIZED FOR SAYING IN A BROCHURE THAT IT DOESN'T BUY HIGHYIELD JUNK BONDS IN ITS GROWTH AND INCOME FUND EVEN THOUGH THE FUND'S PROSPECTUS SAYS IT CAN BUY CONVERTIBLE SECURITIES THAT ARE BELOW INVESTMENT GRADE WE'RE NOT GOING TO BUY ANY JUNK BONDS FUMED DREYFUS CHAIRMAN HOWARD STEIN THIS IS A GROWTH AND INCOME FUND WHERE WE BUY EQUITIES CONVERTIBLES FALL IN THE CLASSIFICATION OF EQUITY 9307230047 930723 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 PDV AMERICA INC 1 BILLION THREETRANCHE OFFERING WAS PRICED ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION OF 725 SENIOR NOTES DUE AUG 1 1998 WAS PRICED AT 99589 TO YIELD 735 THE NOTES WERE PRICED AT A SPREAD OF 210 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 250 MILLION OF SENIOR NOTES DUE AUG 1 2000 WAS PRICED AT PAR TO YIELD 775 THE NOTES WERE PRICED AT A SPREAD OF 218 BASIS POINTS ABOVE TREASURYS THE THIRD TRANCHE 500 MILLION OF 7875 SENIOR NOTES DUE AUG 1 2003 WAS PRICED AT 99186 TO YIELD 7995 THE NOTES WERE PRICED AT A SPREAD OF 210 BASIS POINTS ABOVE TREASURYS GROSS SPREAD IS 15 AND SELLING CONCESSION IS 5 TRADE DATE FOR ALL THREE TRANCHES IS FRIDAY AND ALL THREE TRANCHES ARE RATED BAA3 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PDV IS A UNIT OF PETROLEOS DE VENEZUELA SA NEWSCORP OVERSEAS LTD 250 MILLION ISSUE OF CUMULATIVE PERPETUAL PREFERRED STOCK WAS PRICED AT PAR FOR A 8625 DIVIDEND YIELD ACCORDING TO MCM CORPORATEWATCH THE 10 MILLION SHARES OF PREFERRED NONCALLABLE FOR FIVE YEARS WERE PRICED AT 25 A SHARE RATED SINGLEB1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEWSCORP IS A UNIT OF NEWS CORP LTD SEAGULL ENERGY CORP 250 MILLION TWOTRANCHE DEBT OFFERING PRICED ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 100 MILLION OF SENIOR NOTES DUE AUG 1 2003 WAS PRICED AT PAR TO YIELD 7875 THE NONCALLABLE NOTES ARE RATED BA2 BY MOODY'S AND DOUBLEBPLUS BY S&P GROSS SPREAD IS 15 AND SELLING CONCESSION IS 9 THE SECOND TRANCHE 150 MILLION OF SENIOR SUBORDINATED NOTES DUE AUG 1 2005 WAS PRICED AT PAR TO YIELD 8625 THE SEVENYEAR NONCALLABLE NOTES ARE RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P BOTH TRANCHES WERE SOLD THROUGH UNDERWRITERS LED BY DILLON READ & CO COCACOLA CO 150 MILLION ISSUE OF 7375 DEBENTURES DUE MARCH 8 2093 WERE PRICED AT 98928 TO YIELD 7455 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED BY DOUBLEA3 MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION ISSUE OF STEPUP NOTES DUE AUG 5 1996 PRICED AT PAR TO YIELD 397 ACCORDING TO MCM CORPORATEWATCH THE RATE ON THE NONCALLABLE NOTES STEPSUP TO 5 AFTER ONE YEAR THE BONDS PRICED AT A SPREAD OF 21 BASIS POINTS ABOVE TREASURYS WERE SOLD THROUGH UNDERWRITERS LED BY UBS SECURITIES INC SELLING CONCESSION IS 1 AND REALLOWANCE IS 75 CENTS USXUS STEEL GROUP AN OFFERING OF NINE MILLION COMMON SHARES WAS PRICED AT 3625 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS PETSMART INC AN INITIAL OFFERING OF 72 MILLION COMMON SHARES WAS PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE PROGRESSIVE CORP AN OFFERING OF 45 MILLION COMMON SHARES WAS PRICED AT 37 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS NEXTEL COMMUNICATIONS INC AN OFFERING OF 45 MILLION COMMON SHARES OF WAS PRICED AT 3075 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH MRS TECHNOLOGY INC AN INITIAL OFFERING OF 23 MILLION COMMON SHARES PRICED AT 7 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL NUVEEN OHIO PREMIUM INCOME MUNI FUND 2 AN INITIAL OFFERING OF TWO MILLION COMMON SHARES OF WAS PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS HIRISE RECYCLING SYSTEMS INC AN INITIAL OFFERING OF 12 MILLION COMMON SHARES PRICED AT 5 EACH THROUGH UNDERWRITERS LED BY WHALE SECURITIES ALAMCO INC AN OFFERING OF 27 MILLION COMMON SHARES WAS PRICED AT 550 A SHARE FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1573 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 195 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED TRUST G017 IS BACKED BY THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 5 ADJUSTABLERATE MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME A 10 CONSTANT PREPAYMENT RATE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 575 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS THE UNDERWRITER IS MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY SMITH BARNEY HARRIS UPHAM & CO THE OFFERING SERIES 1993148 IS BACKED BY THE AGENCY'S 30YEAR 95 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 600 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 1015 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 271 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 86 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993147 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 755 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS CREDIT SUISSE FIRST BOSTON FINANCE NETHERLANDS BV SWITZERLAND PARENT 150 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE AUG 25 2003 AT ISSUE AND REOFFER PRICE 99875 VIA CREDIT SUISSE FIRST BOSTON LTD INTEREST FLOATS AT 0125 POINT BELOW SIXMONTH LONDON INTERBANK OFFERED RATE SUBJECT TO MINIMUM COUPON 55 AND MAXIMUM 95 FEES 050 PAYABLE SEMIANNUALLY COMMERZBANK OVERSEAS FINANCE NV GERMANY PARENT 150 MILLION OF COLLARED SUBORDINATED FLOATINGRATE EURONOTES DUE AUG 11 2005 AT ISSUE AND REOFFER PRICE 9975 VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR LESS 025 POINT SUBJECT TO MINIMUM COUPON 525 AND MAXIMUM 8 GUARANTOR COMMERZBANK AG FEES 050 BANCO INTERNACIONAL SA MEXICO 100 MILLION OF 875 EUROBONDS DUE AUG 4 1998 AT ISSUE AND REOFFER PRICE 99801 VIA BANKERS TRUST INTERNATIONAL PLC BONDS YIELD 880 SEMIANNUAL A MARGIN OF ABOUT 360 BASIS POINTS OVER COMPARABLE US TREASURY NOTE FEES 0875 PAYABLE SEMIANNUALLY TREASURY CORP OF VICTORIA AUSTRALIA AGENCY 150 MILLION SWISS FRANCS OF 475 PUBLIC BONDS DUE AUG 24 2001 PRICED AT 102 VIA UNION BANK OF SWITZERLAND FEES 225 DEUTSCHE SIEDLUNGS UND LANDESRENTENBANK DSL GERMANY 100 MILLION SWISS FRANCS OF 425 PUBLIC BONDS DUE AUG 27 1998 PRICED AT 10225 VIA ZUERCHER KANTONALBANK FEES 1625 FINANCE FOR DANISH INDUSTRY A/S DENMARK AGENCY 350 MILLION DANISH KRONER OF 7 EUROBONDS DUE AUG 27 1998 AT ISSUE PRICE 100395 VIA MORGAN STANLEY INTERNATIONAL LTD REOFFERED AT 9927 TO YIELD 718 FEES 1875 9307230046 930723 DELTA AIR POSTS FOURTHQUARTER PROFIT PROMPTING OPTIMISM AMONG ANALYSTS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES OFFERED FURTHER EVIDENCE OF A FRAIL BUT TANGIBLE RECOVERY IN THE AIRLINE INDUSTRY BY POSTING BETTERTHANEXPECTED FISCAL FOURTHQUARTER RESULTS DELTA REPORTED NET INCOME OF 71 MILLION COMPARED WITH A LOSS OF 1802 MILLION OR 372 A SHARE IN THE YEARAGO PERIOD BEFORE SEVERAL ACCOUNTING CHANGES HOWEVER IT HAD A LOSS OF 27 MILLION FOR THE PERIOD ENDED JUNE 30 THE CARRIER POSTED A LOSS OF 41 CENTS A SHARE AFTER PAYMENT OF PREFERRED DIVIDENDS REVENUE INCREASED 11 TO 313 BILLION WALL STREET HAD GENERALLY ESTIMATED DELTA WOULD LOSE AROUND 1 A SHARE INCLUDING THE ACCOUNTING CHANGES THE ATLANTA CARRIER'S RESULTS PROMPTED SEVERAL ANALYSTS TO SUGGEST THAT DELTA COULD TURN A PROFIT IN THE 1993 CALENDAR YEAR THE NATION'S THIRDLARGEST CARRIER HASN'T BEEN IN THE BLACK BEFORE SPECIAL ITEMS IN ALMOST TWO YEARS IN THE FIRST QUARTER OF THE CURRENT CALENDAR YEAR IT HAD A LOSS OF 134 MILLION INCLUDING A PRETAX RESTRUCTURING CHARGE IT'S STILL TOO EARLY TO SAY DELTA HAS TURNED THE CORNER BUT AT LEAST THEY'VE GOT SOME BREATHING ROOM SAID KEVIN MURPHY AN AIRLINE ANALYST AT MORGAN STANLEY & CO DELTA SHARES CLOSED YESTERDAY AT 51 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DELTA WHICH HAS FURLOUGHED SEVERAL HUNDRED PILOTS AND LAID OFF SEVERAL THOUSAND TEMPORARY WORKERS ALSO ANNOUNCED YESTERDAY THAT IT WAS TAKING ITS COSTCUTTING SCALPEL TO ITS MANAGEMENT RANKS THE COMPANY SAID IT WAS ELIMINATING AS OF AUG 1 THE JOBS OF SEVEN VICE PRESIDENTS AND SIX ASSISTANT VICE PRESIDENTS IN ALL THE RESTRUCTURING WILL TRIM 25 OF DELTA'S EXECUTIVES AT THE LEVEL OF ASSISTANT VICE PRESIDENT AND ABOVE WE WANT TO CREATE A MORE HIGHPERFORMANCE ORGANIZATION SAID DELTA CHAIRMAN RONALD W ALLEN IN AN INTERVIEW WE'RE NOT SATISFIED WITH THIS QUARTER'S RESULTS AND WE'LL DO WHAT'S NECESSARY TO GET BACK TO PROFITABILITY DELTA'S EARNINGS PERFORMANCE REFLECTS TWO INDUSTRY TRENDS COST CUTTING AND HIGHER TICKET PRICES THAT HAVE HELPED OTHER AIRLINES EITHER TURN PROFITS OR MINIMIZE LOSSES AMR CORP'S AMERICAN AIRLINES USAIR GROUP INC AND AMERICA WEST AIRLINES HAVE ALL POSTED SECONDQUARTER PROFITS AGAINST YEARAGO LOSSES IN DELTA'S CASE THE AIRLINE HAS UNDERGONE THREE ROUNDS OF DEEP COST CUTTING OVER THE PAST TWO YEARS IN ALL DELTA HAS REDUCED ITS HEAD COUNT BY 6200 JOBS OR 77 OF ITS TOTAL EMPLOYMENT DELTA'S CUTBACKS IN PERSONNEL ARE EXPECTED TO SAVE THE COMPANY ABOUT 265 MILLION ANNUALLY IN SALARY AND BENEFIT COSTS SOME OF THOSE BENEFITS WERE SEEN IN THE QUARTER JUST COMPLETED AS DELTA SAID ITS SEAT MILE COSTS THE COST OF FLYING ONE SEAT ONE MILE FELL 2 FROM THE YEARAGO QUARTER MEANTIME OPERATING REVENUE PER SEAT MILE ROSE 9 FOR THE FISCAL YEAR DELTA REPORTED A NET LOSS OF 4147 MILLION OR 1054 A SHARE COMPARED WITH A LOSS OF 5063 MILLION OR 1060 A SHARE IN THE PREVIOUS YEAR EXCLUDING ACCOUNTING CHANGES DELTA HAD A LOSS OF 3967 MILLION OR 941 A SHARE IN THE MOST RECENT YEAR REVENUE INCREASED 11 TO 1199 BILLION DELTA ADOPTED SEVERAL ACCOUNTING CHANGES SOME OF WHICH AFFECTED QUARTERLY EARNINGS AND SOME AFFECTING YEARLY RESULTS IT TOOK A ONETIME AFTERTAX CHARGE OF 8179 MILLION PLUS SEPARATE AFTERTAX GAINS OF 812 MILLION AND 2308 MILLION FOR ADOPTION OF NEW ACCOUNTING STANDARDS DELTA ALSO TOOK A PRETAX 47 MILLION GAIN FOR CHANGES IN ACCOUNTING ESTIMATES RELATED TO FLIGHT EQUIPMENT APPRECIATION AND ITS PENSION PLAN 9307230045 930723 CORRECTION TUESDAY'S BUSINESS WORLD COLUMN FAMILIAR CALIFORNIA SCENE A HOT TAX VOTE OPED PAGE NAMED THE WRONG CALIFORNIA CITY THAT RECALLED ITS CITY COUNCIL LAST WEEK FOR HAVING IMPOSED A TAX ON UTILITY BILLS THAT CITY IS COVINA 9307230044 930723 BUSINESS BRIEF FIRST INTERSTATE BANCORP JUDGE RULES AGAINST BANK IN CASE OF CREDIT CARD FEES A SUPERIOR COURT JUDGE IN SAN FRANCISCO ISSUED A 139 MILLION RULING AGAINST FIRST INTERSTATE BANCORP FINDING THAT THE BANK ILLEGALLY CHARGED CREDIT CARD CUSTOMERS PENALTY FEES FOR MAKING LATE PAYMENTS OR EXCEEDING THEIR LIMITS THE RULING BY JUDGE DANIEL M HANLON COVERS MORE THAN A MILLION CARDHOLDERS IN CALIFORNIA FROM FEB 10 1983 TO OCT 31 1991 PLAINTIFFS ATTORNEY JAMES C STURDEVANT SAID HE HAD FILED ANOTHER CLASSACTION SUIT PICKING UP WHERE THE RULING LEFT OFF CALLING THE OVERCHARGING A CONTINUING UNLAWFUL BUSINESS PRACTICE FIRST INTERSTATE IN LOS ANGELES SAID IT WAS CONSIDERING AN APPEAL OF THE RULING BANKAMERICA CORP IS FACING A SIMILAR SUIT ON OVERCHARGING WELLS FARGO & CO AND CROCKER NATIONAL BANK HAVE PAID MORE THAN 10 MILLION TO CREDIT CARD CUSTOMERS AND CONSUMER ADVOCACY GROUPS IN ANOTHER CLASSACTION SUIT ALLEGING EXCESSIVE PENALTIES 9307230043 930723 LAW LEGAL BEAT WELLCOME WINS PATENT RULING IN AZT CASE BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL BURROUGHS WELLCOME CO WON EXCLUSIVE PATENT RIGHTS TO THE AIDS DRUG AZT IN A CASE THAT EVENTUALLY MAY HELP ANSWER ONE OF THE MURKIEST QUESTIONS IN PATENT LAW THE DECISION BY A FEDERAL JUDGE IN NEW BERN NC BROUGHT AN ABRUPT HALT TO A FOURWEEKOLD TRIAL CHALLENGING BURROUGHS'S RIGHTS TO AZT THE CASE RAISED THE MUCHDEBATED QUESTION OF WHO GETS PATENT RIGHTS WHEN MANY SCIENTISTS CONTRIBUTE TO A DRUG'S DEVELOPMENT BUT IT WAS CLOSELY WATCHED BY EVEN NONPHARMACEUTICAL COMPANIES BECAUSE A RULING IN THE CASE COULD AFFECT THE CREATION OF ANY SCIENTIFICALLY COMPLEX PRODUCT DESPITE THE INVOLVEMENT OF GOVERNMENT SCIENTISTS IN THE DEVELOPMENT OF AZT JUDGE MALCOLM HOWARD FOUND THAT BURROUGHS WAS THE DRUG'S SOLE INVENTOR SIMPLY BECAUSE IT HAD CONCEIVED OF THE IDEA OF USING IT ON AIDS PATIENTS THE LAW DOESN'T REQUIRE THAT THE INVENTOR'S IDEA BE REASONABLE SCIENTIFICALLY ACCURATE OR CAPABLE OF BEING PROVED THE JUDGE SAID TWO GENERICDRUG COMPANIES HAD ARGUED THAT BURROUGHS SHOULD SHARE THE PATENT RIGHTS BECAUSE GOVERNMENT TESTS WERE CRITICAL TO THE DEVELOPMENT OF THE DRUG JUDGE HOWARD'S DECISION WHICH THE GENERICDRUG MAKERS HAVE SAID THEY WILL APPEAL IS SIGNIFICANT BECAUSE THE ISSUE WILL NOW BE ADDRESSED BY THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT THE COUNTRY'S MOST IMPORTANT PATENT COURT IF IT IS UPHELD THE DECISION WOULD MEAN THAT SCIENTISTS WHO COLLABORATE IN DEVELOPING A PRODUCT WOULDN'T GET PATENT RIGHTS EVEN IF THEY CONTRIBUTED VERY WONDERFUL THINGS TO THE ULTIMATE RESULT SAID KENNETH MADSEN A PATENTLAW SPECIALIST WITH THE NEW YORK LAW FIRM KENYON & KENYON THIS DECISION CERTAINLY MAKES IT EASIER FOR AN INVENTOR TO CLAIM HE HAS MADE AN INVENTION WITHOUT SUPPORTING SCIENTIFIC PROOF THAT THE INVENTION WILL WORK SAID MR MADSEN WHO WASN'T INVOLVED IN THE CASE THE RULING ALSO MEANS THAT AIDS PATIENTS WILL HAVE TO CONTINUE PAYING AS MUCH AS 2500 A YEAR FOR AZT THE GENERICDRUG MAKERS BARR LABORATORIES INC AND NOVOPHARM INC HAVE PROMISED TO SELL AZT AT A MUCH LOWER PRICE IF THEY ARE GIVEN RIGHTS TO LICENSE THE DRUG BOTH BURROUGHS AND BARR ASKED JUDGE HOWARD TO RULE ON THE CASE NOW EVEN THOUGH THE JURY HAD HEARD ONLY SIX OF THE APPROXIMATELY 240 WITNESSES SCHEDULED TO TESTIFY BRUCE DOWNEY PRESIDENT OF BARR SAID BARR REQUESTED THE RULING SO IT COULD APPEAL THE JUDGE'S DEFINITION OF INVENTORSHIP WHICH HAD BECOME APPARENT DURING THE COURSE OF THE TRIAL IT SIMPLY MADE NO SENSE TO ME TO SPEND A MILLION OR A MILLIONANDAHALF DOLLARS TRYING THIS CASE WITH THE MOST LIKELY OUTCOME BEING ANOTHER TRIAL MR DOWNEY SAID ROBERT GUNTER PRESIDENT OF NOVOPHARM CRITICIZED THE RULING AS PREMATURE BECAUSE NO BARR OR NOVOPHARM WITNESSES HAD YET TAKEN THE STAND HE'S PULLED MATTERS INTO HIS OWN HANDS AND REMOVED THE JURY'S POWER TO DETERMINE THE FACTS IN THIS CASE MR GUNTER SAID JUDGE HOWARD'S RULING CAME AFTER LAWYERS FOR BURROUGHS OBJECTED TO QUESTIONS THAT BARR'S LAWYER WAS ABOUT TO ASK AN EXPERT WITNESS THE LAWYER WAS GOING TO QUESTION THE USEFULNESS OF THE AZT TESTS THAT BURROUGHS SCIENTISTS HAD PERFORMED ON MICE BUT JUDGE HOWARD SAID THE QUESTIONS WEREN'T LEGALLY RELEVANT BECAUSE BURROUGHS'S INVENTORS DIDN'T HAVE TO KNOW THAT AZT WOULD BE EFFECTIVE IN TREATING HUMANS TO GET PATENT RIGHTS SCIENTISTS AT THE GOVERNMENT'S NATIONAL INSTITUTES OF HEALTH TESTED AZT ON HUMAN CELLS INFECTED WITH THE VIRUS THAT CAUSES AIDS THE NIH HAS GIVEN BARR THE AUTHORITY TO LITIGATE ITS RIGHTS TO THE AZT PATENT THE COMPANY HAS AGREED THAT IF IT IS SUCCESSFUL IN COURT IT WILL PAY NIH A ROYALTY ON ITS AZT SALES MR MADSEN THE PATENTLAW SPECIALIST SAID THERE IS A GOOD CHANCE THAT THE APPEALS COURT WILL REVERSE JUDGE HOWARD'S RULING THE COURT MAY DECIDE THAT INVENTORS MUST BE ABLE TO REASONABLY PREDICT THAT THEIR PRODUCTS WILL WORK BEFORE GETTING PATENT RIGHTS AND THAT JUST CONJECTURE ISN'T ENOUGH HE SAID BUT PAUL HOLCOMBE VICE PRESIDENT AND GENERAL COUNSEL OF BURROUGHS A UNIT OF BRITAIN'S WELLCOME PLC SAID IN A STATEMENT THAT JUDGE HOWARD'S DECISION IS CONSISTENT WITH 100 YEARS OF PATENT LAW AND PREDICTED IT WOULD BE AFFIRMED THE POINT HERE IS NOT ONE OF ACCESS TO AZT HE SAID THE POINT IS WHETHER GENERIC COMPANIES WHICH SPEND LITTLE MONEY OR EFFORT ON BASIC RESEARCH SHOULD HAVE THE ABILITY TO COME IN AND PROFIT FROM OUR DISCOVERY BEFORE THE PATENTS WE OWN LEGALLY EXPIRE IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE SHARES OF BARR FELL 1625 TO CLOSE AT 16125 A SHARE AMERICAN DEPOSITARY SHARES OF WELLCOME PLC CLOSED ON THE NEW YORK STOCK EXCHANGE AT 950 A SHARE UP 375 CENTS NOVOPHARM IS THE US UNIT OF CANADA'S NOVOPHARM LTD CALIFORNIA'S HIGHEST COURT HAS MADE IT MORE DIFFICULT FOR EMPLOYEES OF INDEPENDENT CONTRACTORS TO SUE IF THEY ARE INJURED ON THE JOB OVERRULING FIVE OF ITS OWN DECISIONS DATING BACK TO THE 1960S THE COURT RULED THAT EMPLOYEES COVERED BY WORKERS COMPENSATION INSURANCE WHO ARE INJURED DOING INHERENTLY DANGEROUS WORK CANNOT SEEK DAMAGES FROM THE COMPANY OR PERSON THAT HIRED THE INDEPENDENT CONTRACTOR THEY WORK FOR COURTS IN MOST STATES HAVE ALREADY RULED SIMILARLY THE CONSTRUCTION AND ASBESTOS INDUSTRIES WILL BE MOST AFFECTED BY THE DECISION BUT IT WILL APPLY TO ANY BUSINESS THAT HIRES INDEPENDENT CONTRACTORS TO DO POTENTIALLY PERILOUS WORK SAID FREDERICK D BAKER A PARTNER WITH THE SAN FRANCISCO LAW FIRM SEDGWICK DETERT MORAN & ARNOLD WHICH FILED A FRIENDOFTHECOURT BRIEF ON BEHALF OF THE AMERICAN PETROLEUM INSTITUTE IN SUPPORT OF A HOMEOWNER SUED BY AN INJURED WORKER THE COURT STRUCK DOWN A LEGAL THEORY KNOWN AS THE PECULIAR RISK DOCTRINE UNDER THE THEORY A PERSON OR FIRM THAT HIRED AN INDEPENDENT CONTRACTOR TO DO DANGEROUS WORK WAS HELD LIABLE EVEN IF THE CONTRACTORS' NEGLIGENCE CAUSED AN INJURY TO AN EMPLOYEE WORKER COMPENSATION LAWS PRECLUDE EMPLOYEES WHO ARE COVERED FROM SUING THEIR EMPLOYERS FOR WORK RELATED INJURIES JUSTICE C MCPHERSON WHO REPRESENTED THE INDEPENDENT CONTRACTOR IN THE CASE SAID THAT WORKERS WILL BE ABLE TO SUE THE COMPANY THAT HIRED THE INDEPENDENT CONTRACTOR IF THEY CAN PROVE IT WAS ACTIVELY AT FAULT MR MCPHERSON OF THE REDWOOD CITY CALIF LAW FIRM ROPERS MAJESKI KOHN BENTLEY WAGNER & KANE SAID FOR EXAMPLE THAT THE COMPANY COULD BE LIABLE IF IT FAILED TO CHECK IF THE CONTRACTOR HAD A LICENSE OR WORKERS COMPENSATION INSURANCE AFTER FOUR MONTHS OF TRIAL AND 45 WITNESSES NEW YORK PROSECUTORS RESTED THEIR CASE AGAINST ROBERT ALTMAN A WASHINGTON DC LAWYER ACCUSED OF LYING AND ACCEPTING BRIBES TO CONCEAL THE SECRET OWNERSHIP OF FIRST AMERICAN BANKSHARES INC BY THE SCANDALRIDDEN BANK OF CREDIT AND COMMERCE INTERNATIONAL A UNIT OF BCCI HOLDINGS LUXEMBOURG SA MR ALTMAN'S ATTORNEYS TOLD STATE SUPREME COURT JUDGE JOHN AK BRADELY THAT THEY PLANNED TO PRESENT A SHORT DEFENSE CASE BEGINNING NEXT THURSDAY MR ALTMAN'S LAWYERS SAID THEY WOULD CALL FIVE WITNESSES INCLUDING LAWYER MARTIN LIPTON AND ANOTHER PARTNER IN THE NEW YORK LAW FIRM WACHTELL LIPTON ROSEN & KATZ PROSECUTORS ALLEGE THAT MR ALTMAN AND CLARK CLIFFORD A WASHINGTON INSIDER WHO WAS MR ALTMAN'S LAW PARTNER MISLED REGULATORS SO THAT BCCI COULD TAKE OVER FIRST AMERICAN MR CLIFFORD WAS TOO ILL TO STAND TRIAL AND HIS CASE WAS DELAYED GUILTY PLEA A THIRD MEMBER OF THE INSIDER TRADING RING THAT ALLEGEDLY MADE A TOTAL OF MORE THAN 35 MILLION FROM ILLEGAL TRADES IN SECURITIES OF MOTEL 6 LP PLEADED GUILTY TO CONSPIRACY FEDERAL PROSECUTORS SAID GUILLERMO WILLIAM GOMEZ OF BEVERLY HILLS CALIF PLEADED GUILTY IN FEDERAL COURT IN NEW YORK AFTER PROSECUTORS CHARGED HIM WITH PERSONALLY MAKING 96000 ON TRADES WHEN MOTEL 6 WAS ACQUIRED BY FRANCE'S ACCOR SA IN 1990 TWO OTHER MEMBERS OF THE RING HAVE BEEN CHARGED WITH INSIDER TRADING AND ARE AWAITING TRIAL A MOTEL 6 EXECUTIVE HUGH THRASHER HAS NOT BEEN CHARGED CRIMINALLY BUT HAS BEEN SUED BY THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE ALLEGATIONS KATIA HETTER AND JONATHAN M MOSES IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9307230042 930723 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JULY 16 ACCOUNTED FOR 16 OR AN AVERAGE 413 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING ASSOCIATED WITH THE JULY 19 MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL FIVE MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 37 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 46 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 43 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 44 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 13 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS SALOMON BROS AND NOMURA SECURITIES SPLIT THEIR ACTIVITY BETWEEN THEIR OWN ACCOUNTS AND THOSE OF THEIR CUSTOMERS 9307230041 930723 LETTERS TO THE EDITOR THE GANG THAT COULDN'T SHOOT A RUGER YOUR ARTICLE ON THE MULTITUDE OF DEADLY DROPFIRES ASSOCIATED WITH THE STURM RUGER OLD MODEL SINGLE ACTION REVOLVER WILD WEST LEGACY JUNE 24 OMITTED ONE ASPECT OF THE GUN'S COLORFUL HISTORY THE OLD MODEL PLAYED A SUPPORTING ROLE IN CONGRESSIONAL EFFORTS TO REFORM OUR NATION'S PRODUCT LIABILITY SYSTEM IE TO MAKE IT HARDER FOR CONSUMERS KILLED OR INJURED BY DANGEROUS PRODUCTS TO RECOVER FAIR COMPENSATION THE STURM RUGER GARNERED FANS ON CAPITOL HILL EAGER TO FIND PRODUCTS ALLEGEDLY VICTIMIZED BY OUR NATION'S PRODUCT LIABILITY SYSTEM ALTHOUGH THE OLD MODEL MAY BE ENTITLED TO THE MONIKER OF MOST DANGEROUS FIREARM EVER MANUFACTURED IT WAS PROFFERED BY PROPONENTS OF PRODUCT LIABILITY REFORM AS AN EXAMPLE OF A FINE SAFE PRODUCT DRIVEN OFF THE MARKET BY FRIVOLOUS LAWSUITS AS YOUR ARTICLE MAKES ABUNDANTLY CLEAR LAWSUITS INVOLVING THE OLD MODEL ARE ANYTHING BUT FRIVOLOUS MOREOVER LITIGATION IS THE ONLY MECHANISM AVAILABLE TO REGULATE THE SAFETY OF FIREARMS SINCE NO FEDERAL AGENCY HAS SAFETY JURISDICTION UNFORTUNATELY MANY HAPLESS INJURED CONSUMERS HAD TO SUE BEFORE RUGER WAS FORCED TO MAKE ITS PRODUCT SAFER THE OLD MODEL IS A COMPELLING CASE STUDY OF HOW LITIGATION PARTICULARLY IN THE CASE OF FIREARMS IS ESSENTIAL TO PROTECT CONSUMERS FROM DEFECTIVE DANGEROUS PRODUCTS THE LOCKWORK DESIGN OF THE RUGER OLD MODEL SINGLE ACTION REVOLVER FAMILY IS FUNCTIONALLY IDENTICAL TO THAT OF SAMUEL COLT'S CAP AND BALL REVOLVERS THE SUBSEQUENT COLT PEACEMAKER REVOLVER AND THE INNUMERABLE COPIES OF THESE REVOLVERS MADE OVER THE PAST 157 YEARS THE MANUFACTURING AND MATERIALS OF THE RUGER OLD MODEL SINGLE ACTION REVOLVERS ARE SUPERIOR TO THOSE OF ORIGINAL COLT REVOLVERS AND FAR SUPERIOR TO THE COPIES OF THESE REVOLVERS MILLIONS OF 19THCENTURY AMERICANS MANY WITHOUT THE BENEFIT OF FORMAL EDUCATION USED THIS GUN DESIGN THROUGHOUT THEIR LIFETIMES WITHOUT INJURING THEMSELVES OR OTHERS IT WAS THE MOST POPULAR AND RESPECTED HANDGUN DESIGN OF THE 19TH CENTURY WORLDWIDE FOR BOTH ITS RELIABILITY AND SAFETY NOW WE FIND OUT THAT 20THCENTURY AMERICANS CANNOT USE THE MODERN EQUIVALENT OF COL COLT'S 1830S VINTAGE INVENTION WITHOUT INJURING THEMSELVES AND OTHERS IN THEIR IMMEDIATE VICINITY IF SUCH DEVOLUTION CONTINUES APACE KNIFE MAKERS SHOULD FEAR 21STCENTURY AMERICA THE ARTICLE WAS VERY PUNISHING TO RUGER AND VERY SENSATIONALISTIC WITH REGARD TO ACCIDENTAL DISCHARGES OF RUGER'S OLD MODEL REVOLVER THE SENSATIONALISM SHOULD HAVE BEEN DIRECTED AT THE IGNORANCE AND STUPIDITY OF PEOPLE WHO DON'T KNOW HOW TO HANDLE GUNS I OWN A COLT MODEL 1873 PEACEMAKER REVOLVER THE ONE THE RUGER GUNS WERE MODELED AFTER AND I KNOW BETTER THAN TO PUT A ROUND IN THE CHAMBER UNDER THE HAMMER WHEN I WAS A BOY MY FATHER TOLD ME THAT ANY GUN CAN FIRE WHEN DROPPED I WOULDN'T CARRY A REVOLVER A PISTOL A RIFLE OR A SHOTGUN WITH A ROUND IN THE CHAMBER UNLESS I'M AT WAR OR READY TO KILL GAME ANYONE WHO CARRIES A ROUND IN THE CHAMBER UNDER THE HAMMER OF A SINGLE ACTION REVOLVER IS NEGLIGENT SOME TRUTHS ARE SELFEVIDENT BUT CLEARLY THERE ARE SOME WHO DO NOT CONNECT WITH REALITY WOULD YOU LEAVE A THREEYEAROLD ALONE ON THE FRONT SEAT OF A CAR WITH THE ENGINE RUNNING WOULD YOU CHECK THE GASOLINE LEVEL IN A TANK WITH A MATCH WOULD YOU USE THE SAME SPOON FOR INSTANT COFFEE YOU JUST USED TO DISPENSE RAT POISON YOU AND A SMALL ARMY OF LAWYERS SEEM TO THINK THAT A REASONABLE PERSON MIGHT JUST DO THAT AND SOME MANUFACTURER MUST PAY HANDSOMELY FOR SUCH USER FOOLISHNESS AND WHY DO YOU SINGLE OUT RUGER THE ORIGINAL DESIGN IS COLT'S AND REVOLVERS HAVE BEEN MADE ON THAT PATTERN SINCE THE EARLY 1870S OTHER COMPANIES HAVE AND ARE PRODUCING SIMILAR MODELS TODAY THE BOTTOM LINE IS THE INDIVIDUAL MUST ASSUME RESPONSIBILITY FOR ACCIDENTS CAUSED BY HIS OR HER OWN LACK OF JUDGMENT 9307230040 930723 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE DEMOCRATIC BUDGET WRITERS GIVE NEW INDICATIONS THEY ARE MOVING TOWARD A FUELTAX INCREASE BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS NEGOTIATING A BUDGET DEFICITREDUCTION PLAN GAVE FURTHER INDICATIONS THAT THEY ARE MOVING TOWARD A FUELTAX INCREASE AND AGREED TO SEVERAL OTHER TAX RISES INCLUDING THOSE HITTING THE WEALTHIEST AMERICANS THE HOUSE'S CHIEF NEGOTIATOR WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI SIGNALED THAT THE HOUSE MIGHT WELL ADOPT A FUELTAX INCREASE WHICH IS THE SENATE'S ALTERNATIVE TO PRESIDENT CLINTON'S DISCARDED PROPOSAL FOR A TAX ON MOST ENERGY CONSUMPTION THOUGH THE HOUSE SIDE DIDN'T AGREE TO THE 43CENTAGALLON TAX INCREASE IT SUGGESTED IT MIGHT DO SO WHEN THE CHAIRMAN ACCEPTED TWO MINOR CHANGES SOUGHT BY THE SENATE SIDE FOR ITS PROPOSAL MEANWHILE OFFICIALS OF THE CLINTON ADMINISTRATION HAVE INDICATED TO LAWMAKERS THAT THE WHITE HOUSE WANTS A FUELTAX INCREASE THAT RAISES AS MUCH AS 34 BILLION OVER FIVE YEARS THAT COULD TRANSLATE INTO AN INCREASE OF 64 CENTS A GALLON FOR GASOLINE AND OTHER TRANSPORTATION FUELS THE ENERGY TAX IS PIVOTAL TO THE HOUSESENATE CONFERENCE WHICH IS TRYING TO DRAFT A COMPROMISE VERSION OF MR CLINTON'S DEFICITREDUCTION PROGRAM BY LATE NEXT WEEK THE SENATE FUEL TAX IS ESTIMATED TO RAISE ABOUT 22 BILLION OVER FIVE YEARS ABOUT 50 BILLION LESS THAN MR CLINTON'S ORIGINALLY PROPOSED BTU TAX THE NEGOTIATORS ARE GRASPING FOR MORE REVENUE BOTH TO HELP PAY FOR INITIATIVES BENEFITING BUSINESS AND THE POOR AND TO REACH THE PRESIDENT'S GOAL OF 500 BILLION IN DEFICIT CUTS OVER FIVE YEARS AT THE SAME TIME SOME RANKANDFILE DEMOCRATS WANT TO LIMIT THE FUEL TAX OR DROP IT ALTOGETHER ALSO YESTERDAY HOUSE AND SENATE BARGAINERS CONDITIONALLY AGREED TO CUT PROJECTED SPENDING FOR MEDICARE BY 54 BILLION OVER THE COMING FIVE YEARS THAT IS MIDWAY BETWEEN THE LOWER HOUSEPASSED FIGURE AND THE HIGHER SENATE NUMBER THE COMPROMISE IS CONTINGENT ON YETTOBEDETERMINED DETAILS AS TO HOW MEDICARE PAYMENTS TO DOCTORS HOSPITALS AND OTHER HEALTHCARE PROVIDERS WILL BE SHAVED TO ACHIEVE THE PROPOSED SAVINGS THE TAX PROVISIONS TENTATIVELY AGREED TO THIS WEEK ACCOUNT FOR ABOUT 200 BILLION OF THE SAVINGS THAT MR CLINTON AND CONGRESSIONAL DEMOCRATS ARE SEEKING REPUBLICANS HAVE UNANIMOUSLY OPPOSED THE DEFICITREDUCTION LEGISLATION AND AREN'T ACTIVELY INVOLVED IN THE NEGOTIATIONS MOST OF THOSE PROPOSED TAX INCREASES AFFECT UPPERINCOME INDIVIDUALS NEGOTIATORS AGREED TO A SLIGHTLY LOWER INCOMETAX INCREASE IN 1993 THAN MR CLINTON PROPOSED FOR THE RICHEST INDIVIDUALS BUT THEY DROPPED A SENATE PROPOSAL THAT WOULD HAVE INCREASED CAPITALGAINS TAXES FOR THOSE WITH TAXABLE INCOME ABOVE 250000 WHICH WOULD HAVE RAISED 600 MILLION OVER FIVE YEARS AS MR CLINTON PROPOSED THE TOP INCOMETAX RATES WOULD RISE TO 36 AND 396 FROM THE CURRENT 31 BUT FOR 1993 ONLY THE TOP RATES WOULD BE 3517 AND 3817 THOSE FIRSTYEAR INCREASES WOULD PICK UP 62 BILLION MORE OVER FIVE YEARS THAN THE SENATE BILL WOULD HAVE THE NEGOTIATORS ALSO AGREED TO APPLY THE MEDICARE PAYROLL TAX TO ALL WAGES CURRENTLY WAGES ABOVE 135000 ARE EXEMPT FEWER SOCIAL SECURITY RECIPIENTS WOULD SEE A TAX INCREASE IN THEIR BENEFITS COMPARED WITH MR CLINTON'S PLAN THE NEGOTIATORS ACCEPTED A SENATE PROVISION SETTING A HIGHER THRESHOLD OF INCOME FOR THOSE WHO ARE SUBJECT TO AN INCREASE IN THE TAXABLE PORTION OF THEIR BENEFITS AS WITH PROVISIONS AGREED TO EARLIER THIS WEEK INCLUDING ONE RAISING THE CORPORATE TAX RATE TO 35 FROM 34 THE TAX CONFEREES' DECISIONS ARE TENTATIVE PENDING AGREEMENT ON THE TOTAL DEFICITREDUCTION PACKAGE AS THE LEAD SENATE NEGOTIATOR FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY CAUTIONED NOTHING'S BEEN AGREED TO UNTIL EVERYTHING IS AGREED TO CONFEREES AGREED TO APPLY THE FUELTAX INCREASE TO NONCOMMERCIAL USES OF JET FUEL AND TO CONDENSED NATURAL GAS USED FOR TRANSPORTATION THE PROPANE AND METHANOL INDUSTRIES HAD COMPLAINED THAT THEY WOULD BE SUBJECT TO LEVY UNDER THE SENATE BILL BUT NOT NATURAL GAS THE SENATE BILL EXEMPTS COMMERCIAL AVIATION FUEL REP CHARLES RANGEL A HOUSE TAX NEGOTIATOR WHO HAS COMPLAINED THAT THE ADMINISTRATION HAS FAILED TO SPELL OUT ITS BOTTOM LINE SAID HE WAS BEGINNING TO GET SOME ANSWERS THOUGH HE DIDN'T LIKE THEM ALL HE SAID THE WHITE HOUSE SIGNALED SUPPORT FOR A TAX CREDIT FOR POOR WORKERS THAT'S MORE GENEROUS THAN THE SENATE VERSION THE ADMINISTRATION ALSO WOULD BACK 35 BILLION FOR TAX INCENTIVES AND SOCIAL SPENDING TO ENTICE INVESTORS TO SOCALLED EMPOWERMENT ZONES HE SAID THOUGH THAT'S LESS THAN THE 5 BILLION THAT THE NEW YORK DEMOCRAT SUPPORTS MR RANGEL AND OTHER MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS HAVE MADE THE ZONES PROVISION THE PRICE OF THEIR VOTES TREASURY SECRETARY LLOYD BENTSEN SAID YESTERDAY THAT THE LIKELY GASOLINE TAX INCREASE WOULD COST MIDDLECLASS FAMILIES ONLY ABOUT 50 A YEAR AND ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE SAID THAT EVEN WITH THE TAX INCREASE THE COST OF DRIVING WOULD REMAIN MUCH LOWER THAN IT WAS 15 YEARS AGO IN INFLATIONADJUSTED TERMS BECAUSE OF LOWER REAL PRICES FOR GASOLINE AND MORE FUELEFFICIENT AUTOMOBILES AS PART OF ITS AGGRESSIVE MARKETING CAMPAIGN THE WHITE HOUSE TODAY PLANS TO ISSUE A STATEBYSTATE TALLY OF THE NUMBER OF JOBS THAT IT PROJECTS WILL BE CREATED OVER THE NEXT FOUR YEARS PROVIDED THE DEFICITREDUCTION BILL PASSES IN NEW YORK STATE FOR INSTANCE THE ADMINISTRATION FIGURES THERE WILL BE 773337 MORE JOBS BY 1996 THAN THERE WERE IN 1992 BUT THE EFFECT OF THE DEFICIT BILL WAS BEING OVERSTATED YESTERDAY THIS PLAN OUGHT TO CREATE ABOUT EIGHT MILLION NEW JOBS OVER THE NEXT FOUR YEARS DEPUTY TREASURY SECRETARY ROGER ALTMAN SAID IF YOU DO NOTHING THESE JOBS WON'T BE CREATED THE EXPECTED NEW JOBS AREN'T ALL ATTRIBUTABLE TO THE DEFICITREDUCTION MEASURE HOWEVER THE RECOVERY FROM THE RECESSION IS A MAJOR FACTOR AT THE WHITE HOUSE YESTERDAY MR CLINTON PLUGGED HIS ECONOMIC PROGRAM AT A DEMONSTRATION OF ADVANCED WIRELESS TECHNOLOGIES THE BILL'S PROVISIONS HE PREDICTED WOULD RESULT IN TENS OF BILLIONS OF DOLLARS IN INVESTMENT BY THE END OF THE DECADE AND HUNDREDS OF THOUSANDS OF HIGHSKILLED HIGHWAGE JOBS MEANWHILE DAVID WILHELM DIRECTOR OF THE DEMOCRATIC NATIONAL COMMITTEE ASKED THE CONSERVATIVE CITIZENS FOR A SOUND ECONOMY TO WITHDRAW ALL ADVERTISING WHICH IS CALCULATED TO MISLEAD INCLUDING RADIO ADS THAT MR WILHELM SAID ARE DESIGNED TO SCARE SMALL BUSINESS OWNERS THE ADS WERE THE SUBJECT OF A WALL STREET JOURNAL STORY THIS WEEK 9307230039 930723 DIME SAVINGS POSTS 63 DECLINE IN NET FOR SECOND QUARTER NEW YORK DIME SAVINGS BANK OF NEW YORK FSB REPORTED A 63 DROP IN SECONDQUARTER NET INCOME WHICH THE BANK ATTRIBUTED TO ITS REDUCTION IN SIZE AS WELL AS TO MORTGAGE PREPAYMENTS EARNINGS FELL TO 32 MILLION OR SIX CENTS A SHARE FROM YEAREARLIER 86 MILLION OR 37 CENTS A SHARE NET INTEREST INCOME FELL 32 TO 499 MILLION FROM 729 MILLION AND NONINTEREST INCOME GREW 18 TO 18 MILLION FROM 152 MILLION DIME SAID THAT AS A RESULT OF BALANCESHEET RESTRUCTURING AS WELL AS CAPITAL RAISED THROUGH A RIGHTS OFFERING AND THE SALE OF BRANCHES OWNED BY A SUBSIDIARY IT IS NOW CONSIDERED ADEQUATELY CAPITALIZED UNDER CERTAIN FEDERAL REGULATIONS HOWEVER THE OFFICE OF THRIFT SUPERVISION HAS REQUIRED THE THRIFT TO MEET A 10 RISKBASED CAPITAL TARGET BY THE END OF 1994 THE FIGURE CURRENTLY EXCEEDS 9 DIME SAVINGS HAS CUT TOTAL ASSETS TO 821 BILLION FROM 995 BILLION A YEAR AGO THE THRIFT SAID NONPERFORMING ASSETS FOR THE PERIOD FELL 26 TO 7971 MILLION THE LOWEST QUARTEREND BALANCE SINCE 1990'S THIRD PERIOD PROVISIONS FOR LOAN LOSSES WERE REDUCED 56 TO 9 MILLION FOR THE SIX MONTHS DIME REPORTED EARNINGS OF 82 MILLION OR 22 CENTS A SHARE DOWN 51 FROM YEAREARLIER 166 MILLION OR 72 CENTS A SHARE 9307230038 930723 PROSECUTORS TIE LOPEZ TO CACHE OF GM PAPERS GERMAN OFFICIALS TO EXPAND INQUIRY INTO SUSPECTED INDUSTRIAL ESPIONAGE BY WALL STREET JOURNAL REPORTERS JOSEPH B WHITE IN DETROIT AND AUDREY CHOI IN DUSSELDORF GERMANY GERMAN PROSECUTORS LINKED FORMER GENERAL MOTORS CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA DIRECTLY TO A CACHE OF SENSITIVE GM DOCUMENTS FOUND IN A WIESBADEN APARTMENT AND SAID THEY WILL WIDEN THEIR INVESTIGATION OF SUSPECTED INDUSTRIAL ESPIONAGE TO MR LOPEZ'S NEW EMPLOYER VOLKSWAGEN AG THE DARMSTADT PUBLIC PROSECUTOR'S OFFICE DIDN'T FILE ANY CHARGES AGAINST MR LOPEZ OR THREE ASSOCIATES MENTIONED IN ITS REPORT BUT IN ITS MOST DETAILED STATEMENT SINCE THE INQUIRY OPENED IN MAY IT SAID IT FOUND AMONG FOUR CARTONS OF DOCUMENTS IN AN APARTMENT RENTED BY TWO OF MR LOPEZ'S ASSOCIATES SECRET GM PLANS AS WELL AS TRANSPARENCIES AND SLIDES SAID TO HAVE BEEN PREPARED AND TRANSLATED INTO GERMAN AT THE EXPLICIT REQUEST OF THE ACCUSED DR LOPEZ THE PROSECUTOR'S STATEMENT BOLSTERS BOTH GM'S CONTENTION THAT MR LOPEZ STOLE COMPANY SECRETS AND ITS EFFORT TO NEUTRALIZE HIM AS A CREDIBLE FORCE IN VW'S MASSIVE RESTRUCTURING EFFORT VW'S STOCK CONTINUED TO SLIDE THURSDAY AS ANALYSTS AND SOME GERMAN POLITICAL FIGURES QUESTIONED HOW LONG MR LOPEZ CAN KEEP HIS POST AS VW'S CHIEF COST CUTTER AND WHETHER CHAIRMAN FERDINAND PIECH COULD BE TOPPLED TOO COMPOUNDING MR LOPEZ'S PROBLEMS IS THE CONTINUING INVESTIGATION BY THE US JUSTICE DEPARTMENT INTO WHETHER HE PURLOINED GM SECRETS TO BENEFIT A FOREIGN CORPORATION NAMELY VW JUSTICE DEPARTMENT OFFICIALS DECLINED TO COMMENT ON THEIR PROBE VW ITSELF SEEMED RATTLED BY THE PROSECUTOR'S REPORT THE ASSOCIATES ROSARIO PIAZZA AND JORGE ALVAREZ JUMPED TO VW WITH MR LOPEZ LAST MARCH AND ARE SUBJECTS OF THE GERMAN INVESTIGATION IN REPONSE TO A QUESTION A VW SPOKESMAN SAID I SEE NO REASON FOR A LOPEZ RESIGNATION AT THIS JUNCTURE VW EMPHASIZED IN A STATEMENT THAT THE PROSECUTOR'S INVESTIGATION CONCERNS DOCUMENTS THAT WERE NEVER ON VOLKSWAGEN AG PROPERTY AND THAT THE FINDINGS PROVIDE NO OCCASION FOR THE MANAGEMENT OR SUPERVISORY BOARDS OF VOLKSWAGEN AG TO LEVEL ACCUSATIONS AGAINST DR LOPEZ SEPARATELY GERHARD SCHROEDER A MEMBER OF VW'S SUPERVISORY BOARD AND PRIME MINISTER OF LOWER SAXONY A GERMAN STATE WHICH HOLDS A 20 STAKE IN VW SAID THE SUPERVISORY BOARD STOOD BY ITS DEFENSE OF MR LOPEZ I HAVE NO REASON TO RETREAT FROM IT MR SCHROEDER DECLARED BUT ANOTHER VW OFFICIAL SAID THE PROSECUTOR'S FINDINGS WILL FORCE VW TO BEGIN AN INTERNAL INQUIRY OF COURSE WE'LL BE CONDUCTING OUR OWN INTERNAL QUERIES THE ONE OR THE OTHER EMPLOYEE WILL BE ASKED ARE YOU SURE ABOUT WHAT YOU SAID' AND WILL BE GIVEN A CHANCE TO REFLECT HE SAID UNTIL NOW VW HAS SAID THAT SWORN STATEMENTS BY MR LOPEZ AND HIS COLLEAGUES DENYING WRONGDOING WERE SUFFICIENT THE SHIFT AWAY FROM THAT POSITION REFLECTS VW'S CONCERN ABOUT COMING UNDER THE SCRUTINY OF THE DARMSTADT PROSECUTOR IT MUST STILL BE EXAMINED TO WHAT EXTENT VW AS A COMPANY IS INVOLVED IN THE WHOLE STORY A SPOKESMAN FOR THE PROSECUTOR'S OFFICE SAID MR LOPEZ MEANWHILE WAS IN SANTIAGO DE COMPOSTELA SPAIN YESTERDAY DELIVERING HIS STANDARD SPEECH ABOUT THE THIRD INDUSTRIAL REVOLUTION AND THE CHALLENGE TO EUROPEAN INDUSTRY HE AGAIN REFUSED TO ANSWER REPORTERS' QUESTIONS ABOUT HIS LEGAL TRAVAILS THE GERMAN PROSECUTOR'S OFFICE MEANWHILE SAID THE LINK BETWEEN CERTAIN DOCUMENTS FOUND IN THE WIESBADEN APARTMENT AND MR LOPEZ WAS EVIDENT FROM THE DOCUMENTS THEMSELVES BUT DECLINED TO ELABORATE OTHER DOCUMENTS REFER TO GM'S ADAM OPEL AG UNIT'S SECRET SMALL CAR PROJECT CODENAMED THE OCAR THE PROSECUTOR SAID OPEL HAS ACCUSED MR LOPEZ AND HIS ASSOCIATES OF TAKING PLANS FOR THE OCAR IN ADDITION THERE WERE DOCUMENTS DEALING WITH SALES STRATEGIES COST SAVINGS AND PRESENTATIONS ON THE NEW FORTHCOMING OPEL VECTRA MODEL THE STATEMENT SAID THE SOCALLED EPOS LIST AN EXTENSIVE LIST SHOWING OPEL'S SUPPLIERS AND COMPONENT COSTS WAS ALSO AMONG THE DOCUMENTS ACCORDING TO AN INDIVIDUAL CLOSE TO THE INVESTIGATION SUCH INFORMATION COULD SAVE VW HUGE SUMS IN ITS RIVALRY WITH OPEL GM OFFICIALS MAINTAIN 9307230037 930723 TELEPHONE IPO IN SINGAPORE MAY GET TRIM SINGAPORE TELECOM OFFER COULD INCLUDE LESS STOCK THAN HAD BEEN FORECAST BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE SINGAPORE TELECOMMUNICATIONS PTE LTD'S EAGERLY AWAITED INITIAL PUBLIC OFFERING MAY BE SMALLER AND COME TO MARKET LATER THAN SOME ANALYSTS AND INVESTORS EXPECTED ALTHOUGH THE CHAIRMAN OF SINGAPORE'S GOVERNMENTOWNED TELEPHONE MONOPOLY SAID THE COMPANY'S PLANS FOR THE OFFERING HAVEN'T CHANGED HIS COMMENTS THIS WEEK SUGGEST THE GOVERNMENT WILL SELL LESS STOCK IN THE IPO THAN MANY LOCAL MARKET PLAYERS HAD ANTICIPATED WHILE SINGAPORE TELECOM AND THE SINGAPORE GOVERNMENT HADN'T GIVEN ANY DIRECT SIGNALS ON THE EXPECTED SIZE OF THE OFFERING IN THE PAST MANY ANALYSTS BELIEVED THE GOVERNMENT WOULD SELL AS MUCH AS 25 OF THE COMPANY OR AN ESTIMATED FIVE BILLION SINGAPORE DOLLARS US309 BILLION OF STOCK HOWEVER ON TUESDAY SINGAPORE TELECOM SAID IT HAD OBTAINED PERMISSION FROM THE SINGAPORE STOCK EXCHANGE TO SELL SIGNIFICANTLY LESS THAN 25 OF THE COMPANY IN THE OFFERING KOH BOON HWEE NONEXECUTIVE CHAIRMAN OF THE COMPANY DECLINED TO COMMENT FURTHER ON THE SIZE OF THE OFFERING AND WOULDN'T SAY IF THE STOCK EXCHANGE SET A MINIMUM SIZE FOR THE ISSUE UNDER STOCK EXCHANGE RULES COMPANIES USUALLY MUST SELL AT LEAST 25 OF THEIR STOCK IN AN INITIAL OFFERING MR KOH ALSO CARVED OUT A LITTLE SPACE FOR THE GOVERNMENT ON THE TIMING OF THE ISSUE FINANCE MINISTER RICHARD HU TOLD THE LOCAL PRESS IN MARCH THAT THE GOVERNMENT'S TARGET DATE FOR THE OFFERING WAS THE END OF SEPTEMBER BUT THIS WEEK MR KOH SET A DEADLINE OF THE END OF THE YEAR FOR THE ISSUE WE ARE ON TRACK FOR OUR FLOTATION WHICH WILL TAKE PLACE BEFORE THE END OF THE YEAR MR KOH SAID IN RESPONSE TO A QUESTION HE ADDED THAT THE INTENTION IS TO STAY ON TRACK FOR LAUNCHING THE ISSUE BY THE END OF SEPTEMBER OR BEGINNING OF OCTOBER WE AREN'T GOING TO PUT A PRECISE DATE ON IT MR KOH SAID SINGAPORE TELECOM AND THE GOVERNMENT WHICH HAVE BEEN TIGHTLIPPED ABOUT THE IPO UNTIL NOW MAY HAVE DECIDED THE TIME WAS RIGHT TO GIVE SOME DIRECTION TO INVESTORS ON THE SIZE AND TIMING OF THE OFFERING A STRONG RALLY ON THE SINGAPORE EXCHANGE EARLIER HAD ANALYSTS AND INVESTORS EXCITED ABOUT THE EXPECTED SINGAPORE TELECOM ISSUE PROMPTING A LOT OF SPECULATION ON THE SIZE OF THE OFFERING THE LOCAL MARKET HAS SINCE COME OFF ITS HIGH AND THE GOVERNMENT MAY BE TRYING TO CALM ANY WORRIES THAT THE MARKET COULDN'T ABSORB 25 OF THE COMPANY IN ONE SHOT MR KOH DECLINED TO COMMENT ON THE STRUCTURE OF THE ISSUE AS PREVIOUSLY REPORTED THE GOVERNMENT HAS SAID PART OF THE ISSUE WILL BE RESERVED FOR SINGAPOREANS MR KOH SAID THE COMPANY HASN'T RULED OUT LISTING ITS STOCK ON A FOREIGN EXCHANGE SUCH AS THE NEW YORK STOCK EXCHANGE IN ADDITION TO LISTING ON THE SINGAPORE EXCHANGE HOWEVER ONE ANALYST SAID THAT BECAUSE FOREIGN INVESTORS DON'T HAVE ANY PARTICULAR WORRIES ABOUT TRADING THROUGH THE SINGAPORE EXCHANGE THE COMPANY DOESN'T NEED A FOREIGN LISTING TO HELP SELL THE IPO THIS WEEK SINGAPORE TELECOM REPORTED NET INCOME OF S101 BILLION US6248 MILLION FOR THE YEAR ENDED MARCH 31 A YEAR EARLIER THE COMPANY HAD A NET SURPLUS OF S101 BILLION BUT THE NUMBERS AREN'T COMPARABLE BECAUSE OF A RESTRUCTURING OF THE COMPANY'S BALANCE SHEET IN PREPARATION FOR PRIVATIZATION REVENUE ROSE 11 TO S276 BILLION IN THE LATEST PERIOD FROM S248 BILLION A YEAR EARLIER THE RESULTS GAVE INVESTORS THEIR FIRST CLEAR LOOK AT THE FINANCES OF THE COMPANY IN WHICH THEY WILL BE OFFERED SHARES PREVIOUSLY AN ARM OF THE GOVERNMENT SINGAPORE TELECOM WAS REINCARNATED AS A SEPARATE ENTITY ON APRIL 1 1992 IN THE PROCESS THE GOVERNMENT STRIPPED S354 BILLION IN CASH FROM SINGAPORE TELECOM'S BALANCE SHEET A SUM WHICH THE GOVERNMENT KEPT INTEREST INCOME ON THAT CASH HOARD HAD BOOSTED THE OLD SINGAPORE TELECOM'S REPORTED NET SURPLUS IN THE PAST THE LOSS OF THAT INTEREST INCOME LARGELY ACCOUNTED FOR SINGAPORE TELECOM'S FLAT NET INCOME IN FISCAL 1993 HOWEVER THE COMPANY'S PRETAX OPERATING PROFIT JUMPED 13 TO S123 BILLION IN THE LATEST YEAR FROM S109 BILLION A YEAR EARLIER MR KOH SAID SINGAPORE TELECOM EXPECTS ITS FINANCIAL PERFORMANCE THIS YEAR TO CONTINUE THE SAME TREND AT MARCH 31 SHAREHOLDERS' EQUITY WAS S245 BILLION DOWN FROM S627 BILLION A YEAR EARLIER TOTAL ASSETS WERE S516 BILLION DOWN FROM S769 BILLION IN BOTH CASES THE DECLINES REFLECT THE GOVERNMENT'S DECISION TO RETAIN MOST OF THE OLD SINGAPORE TELECOM'S CASH 9307230036 930723 TRIMARK EXPECTS NET TO SHOW STRONG RISE FOR 4TH QUARTER YEAR SANTA MONICA CALIF TRIMARK HOLDINGS INC CITING STRONG GROWTH IN ITS HOMEVIDEO AND INTERNATIONAL THEATRICAL BUSINESS EXPECTS TO REPORT SHARPLY HIGHER PROFIT FOR THE FOURTH QUARTER ENDED JUNE 30 CHAIRMAN MARK AMIN SAID MR AMIN SAID HE ANTICIPATES NET INCOME FOR THE QUARTER OF 900000 TO 12 MILLION OR 21 CENTS TO 27 CENTS A SHARE ON REVENUE OF 18 MILLION TO 19 MILLION IN THE YEAREARLIER FOURTH QUARTER TRIMARK HAD NET OF 166000 OR FOUR CENTS A SHARE ON REVENUE OF 117 MILLION FOR THE YEAR THE ENTERTAINMENT COMPANY EXPECTS TO REPORT NET OF 28 MILLION TO 31 MILLION OR 62 CENTS TO 68 CENTS A SHARE ON REVENUE OF 55 MILLION TO 60 MILLION IN FISCAL 1992 TRIMARK EARNED 22 MILLION OR 48 CENTS A SHARE ON REVENUE OF 544 MILLION THE EXPECTED RESULTS FOR THE YEAR WOULD TOP ANALYSTS' EXPECTATIONS OF 60 CENTS A SHARE THEY ARE EVEN MORE NOTEWORTHY BECAUSE ANALYSTS MADE THEIR ESTIMATES WITHOUT KNOWING THAT TRIMARK PLANNED TO TAKE A WRITEOFF EQUAL TO 16 CENTS A SHARE DURING THE YEAR TO SETTLE A SHAREHOLDER LAWSUIT AMID ALL THIS TALK OF THE 'ELECTRONIC SUPERHIGHWAY' AND THE MULTIMEDIA EXPLOSION PEOPLE KNOW THAT'S GOING TO RESULT IN INCREASED DEMAND FOR PROGRAMMING MR AMIN SAID WE HAVE PROVED THAT WE ARE EFFICIENT AND EFFECTIVE AT MAKING AND DISTRIBUTING THE MOVIES AND PROGRAMMING WHICH WILL HOPEFULLY BE FEEDING ALL THESE FUTURISTIC MEANS OF DISTRIBUTION THE FOURTH QUARTER'S EARNINGS WERE HELPED BY THE VIDEO RELEASE OF TRIMARK'S HIT MOVIE LEPRECHAUN OF WHICH IT SOLD MORE THAN 118000 COPIES TO VIDEORENTAL STORES A COMPANY RECORD THE VIDEO DIVISION ALSO HAD SUCCESS WITH OTHER TITLES INCLUDING FLIRTING A MOVIE STARRING NICOLE KIDMAN AND THE TREASURE A FAMILY MOVIE ABOUT THREE 12YEAROLDS WHO UNCOVER THE MYSTERY SURROUNDING THE DISAPPEARANCE OF A LIGHTHOUSE KEEPER MR AMIN ALSO SAID THE COMPANY HAD STRONG CONTRIBUTIONS FROM ITS INTERNATIONAL THEATRICAL TELEVISION AND PAYTV OPERATIONS HE NOTED FOR EXAMPLE THAT A MOVIE IT SOLD TO TIME WARNER INC'S HOME BOX OFFICE SERVICE EXTREME JUSTICE HAD THE SECONDHIGHEST RATINGS FOR A MOVIE IN ITS TIME SLOT IN JUNE THE MOVIE WHICH STARS LOU DIAMOND PHILLIPS AND SCOTT GLENN WAS SECOND ONLY TO BATMAN RETURNS 9307230035 930723 BUSINESS BRIEF LONE STAR INDUSTRIES INC BUILDING MATERIALS MAKER AGREES TO SELL VENTURE STAKE LONE STAR INDUSTRIES INC SAID IT AGREED TO SELL ITS STAKE IN A BRAZILIAN CEMENT PRODUCER TO A FRENCH CONCERN FOR AT LEAST 621 MILLION LONE STAR BASED IN STAMFORD CONN SAID IT SIGNED AN AGREEMENT WITH PARISBASED LAFARGE COPPEE SA TO SELL ITS 496 INTEREST IN COPANHIA NACIONAL DE CIMENTO PORTLAND TO THE FRENCH BUILDING MATERIALS GIANT THE BRAZILIAN COMPANY IS A JOINT VENTURE BETWEEN BUILDINGMATERIALS MAKER LONE STAR AND LAFARGE COPPEE WHICH OWNS THE BALANCE OF THE BRAZILIAN UNIT'S STOCK THE PRICE TIED TO THE VALUE OF LAFARGE COPPEE SHARES IN LATE AUGUST WILL NOT BE LESS THAN 621 MILLION AT THAT PRICE THE SALE WOULD RESULT IN A LOSS OF 324 MILLION OR 194 A SHARE THE SALE REQUIRES APPROVAL OF THE US BANKRUPTCY COURT HANDLING LONE STAR'S CHAPTER 11 FILING A HEARING IS SCHEDULED FOR EARLY SEPTEMBER 9307230034 930723 INTERNATIONAL SOUTH KOREAN OIL IMPORTS SEOUL SOUTH KOREA SOUTH KOREA'S CRUDE OIL IMPORTS TOTALED 281 MILLION BARRELS IN THE FIRST HALF OF THIS YEAR UP 83 FROM 259 MILLION BARRELS IN THE 1992 PERIOD THE MINISTRY OF INDUSTRY TRADE AND ENERGY SAID BUT THE GROWTH PACE FOR THE FIRST HALF OF THIS YEAR MARKS A SLOWDOWN COMPARED WITH THE ANNUAL GROWTH RATES OF 20 TO 30 FOR THE PAST THREE YEARS THE SLOWER GAIN IS ATTRIBUTABLE TO THE NATION'S STAGNANT ECONOMY AND A NATIONWIDE CAMPAIGN FOR ENERGY CONSERVATION THE MINISTRY SAID 9307230033 930723 MARKETING & MEDIA SUBARU AD ACCOUNT IS EXPECTED TO BE PLACED IN REVIEW BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SUBARU OF AMERICA INC ITS AUTO SALES IN A FREE FALL AND ITS AD CAMPAIGNS HARSHLY CRITICIZED FOR MUDDLED MESSAGES IS EXPECTED TO PLACE ITS 70 MILLION ADVERTISING ACCOUNT IN REVIEW PERHAPS AS EARLY AS TODAY INDUSTRY OFFICIALS SAID THE FATE OF INCUMBENT AGENCY WIEDEN & KENNEDY COULDN'T BE DETERMINED THE ADVERTISING INDUSTRY HAS BEEN EXPECTING THE MOVE FOR SOME TIME WIEDEN'S AD CAMPAIGNS FOR SUBARU A UNIT OF FUJI HEAVY INDUSTRIES LTD HAVEN'T BEEN EFFECTIVE AND HAVE BEEN VIRTUALLY ABSENT FROM THE AIRWAVES AFTER A BIG PUSH BEGINNING ON THE SUPER BOWL TELECAST IN JANUARY THE CHANGE COMES ABOUT EXACTLY TWO WEEKS AFTER SUBARU NAMED GEORGE MULLER PRESIDENT AND CHIEF OPERATING OFFICER AND ANNOUNCED PLANS TO LAY OFF SOME OF ITS EMPLOYEES MR MULLER 44 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT WITH SOME OF THE DUTIES OF CHIEF OPERATING OFFICER A SPOKESMAN FOR SUBARU DIDN'T RETURN REPEATED TELEPHONE MESSAGES AND DAN G WIEDEN PRESIDENT AND CREATIVE DIRECTOR OF THE AGENCY DIDN'T RETURN PHONE CALLS A SENIOR SUBARU OFFICIAL CONFIRMED THE MOVE SUBARU'S MOVE IS A BLOW TO WIEDEN & KENNEDY WHICH WON THE ACCOUNT IN JUNE 1992 FROM LEVINE HUNTLEY VICK & BEAVER AND EVEN OPENED AN OFFICE IN PHILADELPHIA TO SERVICE THE BUSINESS THE FATE OF THAT OFFICE IS NOW IN DOUBT ITS LATEST CAMPAIGN INCLUDED AN AD FEATURING A WOMAN FILLING UP A SUBARU IMPREZA WITH GAS AND TALKING TO THE CAMERA THE FRENETICALLY EDITED SPOT TRIED TO MAKE THE POINT THAT THE WOMAN DIDN'T NEED A MAN TO TELL HER ABOUT CARS OR FOR WHATEVER REASON BASEBALL THE SPOT TESTED POORLY WITH AT LEAST ONE ADVERTISING TESTING COMPANY PRETESTING CO LEE WEINBLATT CHIEF EXECUTIVE OFFICER OF PRETESTING CALLED THE CAMPAIGN ONE OF THE WORST IT TURNED OFF MEN AND DIDN'T ATTRACT WOMEN THE SERIES OF COMMERCIALS ENDED WITH THE SLOGAN WHAT TO DRIVE WHICH WAS ALSO CRITICIZED CONSUMERS CRITICS SAID DIDN'T WANT TO BE TOLD WHAT TO DRIVE MEANWHILE SUBARU'S SALES CONTINUED IN A DOWNWARD SPIRAL IT SOLD 44915 CARS IN THE FIRST HALF OF 1993 DOWN 21 FROM 56815 A YEAR EARLIER ACCORDING TO CHRISTOPHER CEDERGREN AN ANALYST WITH AUTOPACIFIC GROUP WITH WIEDEN POSSIBLY OUT OF THE RUNNING A LIKELY CONTENDER FOR THE ACCOUNT IS AMMIRATI & PURIS WHICH RESIGNED THE BMW ACCOUNT LAST YEAR THE MOVE BY SUBARU ISN'T DISAPPOINTING TO PERHAPS SUBARU'S MOST IMPORTANT CONSTITUENCY ITS DEALERSHIPS WHICH GENERALLY HAVEN'T BEEN HAPPY WITH CAMPAIGNS 9307230032 930723 ESSO MALAYSIA FIND GAS DEPOSIT KUALA LUMPUR MALAYSIA ESSO PRODUCTION MALAYSIA INC AND MALAYSIA'S STATE OIL COMPANY PETROLIAM NASIONAL BHD PETRONAS REPORTED FINDING A POTENTIALLY SIGNIFICANT NATURAL GAS DEPOSIT OFF THE PENINSULA'S EAST COAST THE GAS WAS STRUCK IN THE LAHO AREA ABOUT 40 KILOMETERS SOUTHEAST OF THE CURRENTLY PRODUCING JERNEH GAS FIELD BY A WELL COMPLETED JUNE 4 ESSO SAID DRILLERS FOUND GAS RESERVOIRS BETWEEN 1300 METERS AND 2100 METERS DOWN ESSO IS THE OPERATOR OF THE FIELD IN A PRODUCTIONSHARING JOINT VENTURE WITH PETRONAS 9307230031 930723 LETTERS TO THE EDITOR DEFICIT ISN'T BEING CUT I AM CONCERNED ABOUT YOUR ARTICLES ON THE PRESIDENT'S BUDGET PACKAGE IN EACH ARTICLE YOU REFER TO THE DEFICITCUTTING PLAN I BELIEVE THIS IS MISLEADING THE PLAN DOES NOT BALANCE THE NATION'S BUDGET THE PLAN DOES NOT REDUCE THE NATION'S BUDGET THE PLAN DOES NOT REDUCE THE NATION'S DEBT THE PLAN IS DESIGNED TO REDUCE ANNUAL BUDGET DEFICIT GROWTH THUS DECREASE THE GROWTH OF THE NATION'S DEBT BUT EACH ARTICLE STATES THE PLAN WILL REDUCE THE DEFICIT BY 500 BILLION OVER FIVE YEARS THIS IMPLIES THE PLAN WILL REDUCE THE NATION'S DEBT WHICH IS FALSE 9307230030 930723 LAW GINSBURG'S RETICENCE VEXES SENATORS BUT DOESN'T THREATEN CONFIRMATION BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOME SENATORS EXPRESSED INCREASING EXASPERATION OVER SUPREME COURT NOMINEE RUTH BADER GINSBURG'S RETICENCE ON CONTROVERSIAL ISSUES BUT HER CONFIRMATION REMAINED ALL BUT ASSURED IN HER THIRD DAY OF HEARINGS BEFORE THE SENATE JUDICIARY COMMITTEE JUDGE GINSBURG ENDURED LECTURES FROM REPUBLICANS AND DEMOCRATS THAT SHE OUGHT TO BE MORE FORTHCOMING ON SUCH MATTERS AS DEATHROW APPEALS AND THE HIGH COURT'S AUTHORITY TO EXPAND CONSTITUTIONAL RIGHTS BUT EVEN HER MOST AGGRESSIVE INTERROGATOR ORRIN HATCH R UTAH CONCLUDED WARMLY LAST NIGHT BY TELLING JUDGE GINSBURG THAT HE OFTEN DIDN'T AGREE WITH HER BUT HE RESPECTED HER AND WOULD VOTE FOR HER COMMITTEE CHAIRMAN JOSEPH BIDEN SAID HE HOPED THAT THE PANEL WOULD VOTE BY THE END OF NEXT WEEK AND THAT THE FULL SENATE WOULD DO SO BEFORE LEAVING AUG 6 FOR ITS SUMMER RECESS JUDGE GINSBURG GENERALLY STUCK TO HER POLICY OF NO HINTS NO FORECASTS NO PREVIEWS OF HOW SHE WOULD DECIDE PARTICULAR CASES ON THE HIGH COURT SHE HAS BEEN WILLING TO EXPLAIN HER PUBLISHED VIEWS ON SEX DISCRIMINATION ALTHOUGH SHE HAS VOWED THAT HER EXPERIENCES AS A PIONEERING WOMEN'S RIGHTS LAWYER WOULDN'T SLANT HER DECISIONS AS A JUSTICE FAILING IN AN EARLIER EXCHANGE TO ELICIT THE NOMINEE'S VIEWS ON CAPITAL PUNISHMENT SEN HATCH NOTED BITTERLY THAT CRITICS OF NOWJUSTICE CLARENCE THOMAS HAD RIDICULED HIM FOR BEING EVASIVE DURING HIS STORMY 1991 CONFIRMATION HEARINGS MR HATCH CRITICIZED JUDGE GINSBURG'S APPROVING REMARKS ABOUT THE SUPREME COURT'S DEVELOPMENT OF A CONSTITUTIONAL RIGHT TO PRIVACY EVEN THOUGH THE IDEA ISN'T EXPLICITLY MENTIONED IN THE CONSTITUTION JUDGE GINSBURG WHO WOULD BE THE FIRST JUSTICE IN 26 YEARS APPOINTED BY A DEMOCRATIC PRESIDENT RESPONDED BY ASSOCIATING HER VIEWS WITH THOSE OF PAST JUSTICES JOHN MARSHALL HARLAN AND LEWIS POWELL MODERATE CONSERVATIVES APPOINTED BY REPUBLICANS JUSTICES HARLAN AND POWELL ARGUED THAT WHILE THE HIGH COURT SHOULD MOVE CAUTIOUSLY IT MAY INFER FROM THE CONSTITUTION THAT INDIVIDUALS HAVE RIGHTS PROTECTING THEM FROM GOVERNMENT INTRUSIONS ON THEIR PERSONAL AND FAMILY PRIVACY JUDGE GINSBURG REFERRED SPECIFICALLY TO A DISSENT BY JUSTICE HARLAN FROM A 1961 RULING IN WHICH THE SUPREME COURT DECLINED TO STRIKE DOWN A STATE CRIMINAL BAN ON USING CONTRACEPTIVES JUSTICE HARLAN SAID THAT RIGHTS INFERRED FROM THE 14TH AMENDMENT'S GUARANTEE OF DUE PROCESS CAN'T BE REDUCED TO A FORMULA AND MUST BE LEFT TO THE DISCRETION OF JURISTS WHO ARE GUIDED BY AMERICAN HISTORY AND EVOLVING LEGAL STANDARDS JUDGE GINSBURG ALSO PRAISED A 1977 PLURALITY OPINION BY JUSTICE POWELL THAT STRUCK DOWN A TOWN ORDINANCE PROHIBITING MEMBERS OF AN EXTENDED FAMILY FROM LIVING TOGETHER IN THE SAME HOUSEHOLD AT ANOTHER JUNCTURE JUDGE GINSBURG SAID SHE DIDN'T AGREE WITH THE DISTINCTIVELY NARROW APPROACH THAT CONSERVATIVE JUSTICE ANTONIN SCALIA OF THE CURRENT COURT TAKES IN DECIDING WHETHER AN IMPLIED CONSTITUTIONAL RIGHT EXISTS EMOTIONS FLARED BRIEFLY YESTERDAY WHEN ONE OF MR HATCH'S LINES OF INQUIRY UPSET SEN CAROL MOSELEYBRAUN D ILL ONE OF TWO NEW WOMEN MEMBERS OF THE COMMITTEE AND THE SENATE'S ONLY BLACK MR HATCH COMPARED THE 1973 ROE VS WADE ABORTIONRIGHTS DECISION TO THE 1857 DRED SCOTT CASE IN WHICH THE HIGH COURT SAID BLACKS COULDN'T EVER BE CITIZENS AND CONGRESS COULDN'T HALT THE SPREAD OF SLAVERY AS THE ONLY DESCENDANT OF A SLAVE ON THE COMMITTEE MS MOSELEYBRAUN SAID SHE FOUND THE ANALOGY PERSONALLY OFFENSIVE MR HATCH APOLOGIZED AND CONDEMNED THE DRED SCOTT DECISION BUT HE CONTINUED TO ASSERT THAT BOTH CASES WERE EXAMPLES OF JUDICIAL OVERREACHING JUDGE GINSBURG FOR HER PART SAID THAT THERE IS A STARK DISTINCTION BETWEEN DRED SCOTT AND ROE VS WADE THE FORMER UPHELD THE RIGHT TO HOLD PEOPLE IN BONDAGE SHE SAID WHILE THE LATTER AIMED AT PROMOTING PERSONAL AUTONOMY JUDGE GINSBURG DECRIED DISCRIMINATION AGAINST HOMOSEXUALS BUT STEERED CLEAR OF ADDRESSING HOW THE HIGH COURT OUGHT TO HANDLE THE ISSUE SHE ALSO SAID THAT IF CONFIRMED SHE WOULD HAVE NO AGENDA TO DISPLACE RULINGS IN WHICH THE SUPREME COURT HAS REFUSED TO STRIKE DOWN BANS ON GOVERNMENT FUNDING OF ABORTION IN ACADEMIC WRITINGS SHE HAS ATTACKED THE RULINGS AS UNFAIR TO POOR WOMEN JUDGE GINSBURG WOULD BE THE SECOND WOMAN TO SERVE ON THE SUPREME COURT 9307230029 930723 INTERNATIONAL IMAGING TO POST JUMP IN NET FOR FISCAL 1ST QUARTER AMHERST NY INTERNATIONAL IMAGING MATERIALS INC BENEFITING FROM ITS STRANGLEHOLD ON A TINY BUT GROWING MARKET FOR THERMAL TRANSFER RIBBONS SAID IT EXPECTS TO POST HEFTY INCREASES IN BOTH REVENUE AND EARNINGS FOR THE FIRST QUARTER ENDED JUNE 29 NET INCOME WAS 900000 TO 1 MILLION OR 15 CENTS TO 17 CENTS A SHARE CHIEF EXECUTIVE AND PRESIDENT JACK O'LEARY SAID IN AN INTERVIEW REVENUE WAS BETWEEN 13 MILLION AND 135 MILLION IN THE YEARAGO QUARTER INTERNATIONAL IMAGING HAD EARNINGS OF 515000 OR NINE CENTS A SHARE ON REVENUE OF 102 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 1994 INTERNATIONAL IMAGING SAID IT EXPECTS EARNINGS OF ROUGHLY 65 MILLION OR 80 CENTS A SHARE ON REVENUE OF ABOUT 61 MILLION IN THE YEAREARLIER PERIOD NET INCOME WAS 3 MILLION OR 58 CENTS A SHARE ON REVENUE OF 484 MILLION THERMAL TRANSFER RIBBONS ARE USED IN THERMAL TRANSFER COLOR AND BAR CODE PRINTERS WHICH USE HEAT TO PRINT IMAGES ABOUT HALF OF INTERNATIONAL IMAGING'S REVENUE COMES FROM SALES OF BAR CODE RIBBONS AND 38 COMES FROM SALES OF COLOR RIBBONS THE REST COMES FROM OTHER RIBBONS THE COMPANY WHICH WENT PUBLIC LAST MONTH LICENSES THE TECHNOLOGY TO MAKE THE RIBBONS FROM FUJICOPIAN CO OF JAPAN FUJICOPIAN IS THE ONLY COMPANY THAT HAS PATENTED A WAY TO MAKE COLOR THERMAL RIBBONS MR O'LEARY SAID AND INTERNATIONAL IMAGING IS THE ONLY NORTH AMERICAN LICENSEE OF THE TECHNOLOGY THIS AGREEMENT GIVES INTERNATIONAL IMAGING A VICE GRIP ON THE MARKET SAYS PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON WHO IS RECOMMENDING THE STOCK THEY HAVE AN EXTREMELY STRONG POSITION IN A TECHNOLOGY THAT WE FEEL HAS A LOT OF GROWTH PRODUCTS INTERNATIONAL IMAGING EXPECTS TO INTRODUCE TWO KINDS OF RIBBONS BY SEPT 30 MR O'LEARY SAID EXPECTED SALES FROM THE RIBBONS AREN'T INCLUDED IN HIS EARNINGS PROJECTIONS 9307230028 930723 LETTERS TO THE EDITOR WORK HARD AND PLAY BY THE RULES YOUR JUNE 18 EDITORIAL MONIQUE IN TANGLES ABOUT MONIQUE LANDERS'S ATTEMPT TO ENTER THE WORLD OF ENTREPRENEURSHIP AS A HAIRBRAIDER SUGGESTS THE NEED TO DEREGULATE OCCUPATIONS THAT REQUIRE LICENSING THAT IS A DANGEROUS PROPOSITION WE HAVE TO QUESTION THE LIMITS OF SUCH A CONCEPT ARE YOU SUGGESTING THAT THERE EXISTS A RIGID AND UNREASONABLE BARRIER TO NEWCOMERS WHO WANT TO PERFORM OPENHEART SURGERY IN THEIR KITCHENS OF COURSE NOT THE PROTECTION OF THE PUBLIC IS THE PRIMARY PURPOSE AND FUNCTION OF REGULATORY LICENSING REQUIREMENTS THIS CORE CONCERN IS IGNORED IN YOUR EDITORIAL INSTEAD MS LANDERS IS PORTRAYED AS A POOR VICTIM OF THE RULES MS LANDERS WAS A STUDENT IN HIGH SCHOOL ENCOURAGED TO START HER OWN BUSINESS BY THE SCHOOL HER TEACHERS AND THE NATIONAL FOUNDATION FOR TEACHING ENTREPRENEURSHIP HOWEVER WHAT SHE WASN'T TAUGHT WAS RESPECT FOR THE LAWS AND THE RULES THINK ABOUT THE LESSON HER EXPERIENCE COULD HAVE OFFERED IF YOU WANT TO BE IN BUSINESS DON'T TAKE THE FIRST STEP AND INVESTIGATE THE LAWS AND REQUIREMENTS JUST DO IT RULES ARE MEANT TO BE BROKEN ANYONE IN THE REAL BUSINESS WORLD MUST INVESTIGATE THE LAWS AS A PART OF HIS BUSINESS PLAN WE SHOULD FEEL SORRY FOR POOR MONIQUE INDEED NOT BECAUSE SHE WAS PREVENTED FROM ILLEGALLY ENGAGING IN BUSINESS BUT RATHER BECAUSE HER EDUCATORS WERE ENCOURAGING HER TO DO SOMETHING THAT COULD HAVE LANDED HER IN JAIL I EMPLOY 22 PEOPLE IN TWO SALONS FOUR ARE TEENAGERS WHO RUN THE DESK AND CLEAN AND SUPPORT MY LICENSED STAFF I PAY TAXES ON ALL OF THE EMPLOYEES SOME ARE MOTHERS WHO ARE THEIR FAMILY'S SOLE SOURCE OF SUPPORT TWO ARE PREGNANT THE TEENAGERS ARE ALL KIDS WORKING TOWARD COLLEGE THEY HAVE FOUND A LEGAL JOB THAT PAYS THEM THEY FOUND A WAY NOT TO BE IN GANGS OR ON THE STREET THERE ARE THOUSANDS OF JOBS OUT THERE FOR KIDS RIGHT NOW I CAN'T GO ANYWHERE WITHOUT SEEING A HELPWANTED SIGN I HAVE ADVERTISED FOR SIX WEEKS FOR A LICENSED STYLIST BUT HAVEN'T HAD ONE APPLICANT THIS IS IN PART BECAUSE THERE ARE SO MANY LIKE MONIQUE OUT THERE WHO JUST DO IT FOR POCKET CHANGE DISREGARDING LAWS MEANTIME GOOD SALONS ARE GOING OUT OF BUSINESS FOR THE LACK OF LICENSED STYLISTS YES SALON OWNERS DO GET IRATE WHEN A LOT OF PEOPLE DO IT WE KEEP TEENS OFF THE STREET WE PAY RENT WE PROVIDE A SERVICE WE ADVERTISE WE SUPPORT FAMILIES WE CREATE JOBS AND PAY TAXES THAT SUPPORT THE STATE AND ENTITLEMENT PROGRAMS THOSE JOBS WE CREATE PAY TAXES AND BUY GOODS AND SERVICES WE ARE A VITAL PART OF THIS COMMUNITY WE ARE A PROFESSION AND WE DEMAND RESPECT NO WE ARE NOT THE BAD GUYS AND NEITHER IS THE STATE BOARD THAT ENFORCES THE LAW THE LAWS ARE THERE TO PROTECT ALL OF US AS COSMETOLOGISTS WE DON'T MIND COMPETITION AS LONG AS WE ARE ALL PLAYING BY THE SAME RULES I HAD A HOME SHOP LEGALLY ONCE I KNOW THE RULES AND LAWS I PLAYED THE GAME BY THEM NOW I OWN ONE SALON AND COOWN ANOTHER I HAVE NO DOUBT THAT MONIQUE WILL ACHIEVE HER DREAMS I HOPE SHE DOES IF SHE JUST DOES IT WITHIN THE LAW THEN SHE CAN REALLY BE PROUD 9307230027 930723 MODERN TIMES ROSTENKOWSKI'S WOES SPOTLIGHT THE DECLINE OF HOUSE'S OLD SCHOOL STAUNCH DEFENDER OF PERKS AND PATRONAGE IS FOCUS OF POST OFFICE SCANDAL ONE OF THE LAST OF HIS KIND BY DAVID ROGERS AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN THE SUMMER OF 1989 DAN ROSTENKOWSKI WAS IN ALL HIS GLORY LOBBYISTS AND CORPORATE CHIEFTAINS HAPPILY ANTED UP 25000 EACH TO UNDERWRITE A LAVISH BICENTENNIAL CELEBRATION OF HIS HOUSE WAYS AND MEANS COMMITTEE THERE WERE GOLD SOUVENIR CUFF LINKS AND A GLITZY DOCUMENTARY MOVIE STARRING THE CHAIRMAN OF COURSE FOUR YEARS LATER FEDERAL PROSECUTORS PAINT A DIFFERENT PICTURE OF THE PERIOD INSTEAD OF THE EXPANSIVE TAXWRITER REP ROSTENKOWSKI IS PORTRAYED AS A CHISELING PATRONAGE CHIEF WHO ALLEGEDLY PRESSURED HOUSE EMPLOYEES TO CARRY OUT A SERIES OF CASHFORSTAMPS TRANSACTIONS VALUED AT THOUSANDS OF DOLLARS A YEAR THOUGH NEVER IDENTIFIED BY NAME COURT DOCUMENTS FILED THIS WEEK IN WASHINGTON ARE A ROAD MAP POINTING TO THE CHAIRMAN AS AN ANONYMOUS CONGRESSMAN A WHO ALLEGEDLY SWAPPED A POSTAL VOUCHER FOR 2000 IN CASH JUST WEEKS BEFORE THE WAYS AND MEANS BASH THE ALLEGATIONS HAVE YET TO BE PROVED AND MR ROSTENKOWSKI HAS DENIED ANY WRONGDOING STILL THEY POSE A CRUEL RIDDLE WHY WOULD ONE OF THE MOST POWERFUL MEN OF THE HOUSE WITH LEGAL ACCESS TO MORE THAN A MILLION DOLLARS IN CAMPAIGN FUNDS AND SPECIALINTEREST MONEY RISK HIS CAREER BY EXCHANGING POSTAGE STAMPS FOR RELATIVELY SMALL AMOUNTS OF CASH PART OF THE ANSWER SURELY LIES IN THE ENTRENCHED CULTURE OF THE HOUSE A MASTER OF THE LEGISLATIVE DEAL MR ROSTENKOWSKI HAS ALSO LORDED OVER ANOTHER SIDE OF CONGRESS A WORLD OF CLOAKROOM POLITICS AND PATRONAGE OPERATIVES WHO ONCE RAN THE CAPITOL'S DAILY OPERATIONS AND WERE A SOURCE OF POWER THROUGH JOBS AND FAVORS HE IS PART OF THE OLD SCHOOL THAT BELIEVED IN PATRONAGE THAT BELIEVED IN STAFF THAT BELIEVED IN THE INSTITUTION SAYS ED JENKINS A FRIEND AND FORMER GEORGIA CONGRESSMAN AND MEMBER OF THE WAYS AND MEANS PANEL THAT HAS GOOD ASPECTS AND BAD ASPECTS CHAIRMAN ROSTENKOWSKI IS ALSO SOMEONE WHO HAS STAUNCHLY DEFENDED THE PERKS OF OFFICE WHICH ALONG WITH THE OLD PATRONAGE SYSTEM WERE READILY ACCEPTED BY THE OLD SCHOOL BUT HAVE BEEN ATTACKED BY REFORMERS AND RECENTLY DILUTED THE TAB FOR HIS STEAK DINNERS AT MORTON'S OF CHICAGO WITH ITS OWN ROSTENKOWSKI WINE BIN WAS OFTEN PICKED UP BY LOBBYISTS HE MAINTAINED HIS OWN PERSONAL POLITICALACTION COMMITTEE AND REGULARLY KEPT THE MAXIMUM PERMITTED IN HONORARIUMS AT THE TIME HE ALLEGEDLY WAS PLOTTING WITH FORMER HOUSE POSTMASTER ROBERT ROTA THE CHICAGO DEMOCRAT WAS WELL ON HIS WAY TOWARD AMASSING A 1 MILLION CAMPAIGN TREASURY WHICH HE COULD HAVE KEPT HAD HE RETIRED FROM CONGRESS AT THE END OF LAST TERM YET DURING THE PERIOD OF MOST OF THE ALLEGED CASHFORSTAMPS TRANSACTIONS LAWMAKERS INCLUDING MR ROSTENKOWSKI ALSO CHAFED UNDER CAPS ON THEIR PAY AND OUTSIDE INCOME ACCORDING TO COURT DOCUMENTS FILED AS PART OF MR ROTA'S PLEA BARGAIN EVEN WHILE ENJOYING THE LOFTY SYMBOLS OF HIS POWER MR ROSTENKOWSKI MAY HAVE BEEN ENGAGING IN A DECADELONG SCHEME TO EMBEZZLE FROM THE HOUSE POST OFFICE MR ROTA 66 YEARS OLD A ONETIME ROSTENKOWSKI ALLY WHO PLEADED GUILTY TO MISDEMEANOR EMBEZZLEMENT CHARGES MONDAY IS SAID TO HAVE AGREED TO PROVIDE THE CHAIRMAN WITH CASH FOR STAMPS ONLY AFTER PRESSURE FROM THE CONGRESSMAN WHO ALSO HAD PUSHED TO INSTALL A PATRONAGE WORKER WHO ALLEGEDLY HANDLED THE TRANSACTIONS MR ROTA EXPLAINED TO THE NEW SUPERVISOR THAT THEY WOULD GIVE CASH TO CONGRESSMAN A BECAUSE CONGRESSMAN A TOOK CARE OF THEM AND THEY SHOULD TAKE CARE OF CONGRESSMAN A IN RETURN ACCORDING TO THE PROSECUTORS' SUMMARY OF THE CASE MORE THAN ANYONE ON CAPITOL HILL MR ROSTENKOWSKI A PROTEGE OF THE LATE MAYOR RICHARD DALEY OF CHICAGO WOULD APPRECIATE THE SIMPLE AXIOM OF PATRONAGE SET OUT IN THE ROTA PLEA YET NONE OF THE EVIDENCE MADE PUBLIC BY PROSECUTORS SO FAR SHOWS THAT MR ROSTENKOWSKI BENEFITED PERSONALLY FROM THE ALLEGED CASH TRANSACTIONS WHICH COULD HAVE SERVED ONLY TO GENERATE MONEY FOR OTHER OFFICE EXPENSES A POINT THAT COULD BE CRUCIAL IN DETERMINING THE SERIOUSNESS OF THE CASE AGAINST HIM IN YEARS PAST SOME MEMBERS ADOPTED THE PRACTICE OF CASHINGOUT STAMP PURCHASES ALTHOUGH IT WAS DISALLOWED IN THE LATE1970S MOREOVER A COMPARISON OF HOUSE RECORDS WITH THE POSTAGE VOUCHERS LISTED IN THE ROTA CHARGES SHOWS THAT MR ROSTENKOWSKI'S OFFICE CONTINUED TO REPORT LARGE STAMP PURCHASES DURING A PERIOD WHEN THE ALLEGED CONSPIRACY WAS DISCONTINUED BY THE POSTMASTER THIS SUGGESTS THAT HE MAY HAVE BEEN PURCHASING LARGE QUANTITIES OF STAMPS ALL ALONG RATHER THAN TURNING STAMP VOUCHERS INTO CASH MR ROTA WHO CURRENTLY IS FACING A MAXIMUM THREE YEARS IN PRISON AND 300000 IN FINES CLAIMS IN COURT DOCUMENTS THAT THERE WAS A TWOYEAR HIATUS IN THE PLOT FROM MID1987 TO THE SUMMER OF 1989 WHEN THE POST OFFICE'S LONGTIME SUPERVISOR OF ACCOUNTS WAS REPLACED BY AN EMPLOYEE WHOM THE POSTMASTER DIDN'T TRUST HOUSE RECORDS CONFIRM THERE WAS A CHANGE OF PERSONNEL DURING THE PERIOD BUT MR ROSTENKOWSKI'S OFFICE CONTINUED TO REPORT STAMP PURCHASES ALBEIT AT A SOMETIMES SLOWER PACE FOR EXAMPLE IN 1985 AND 1986 WHEN THE ALLEGED CASHFORSTAMPS TRANSACTIONS WERE TAKING PLACE MR ROSTENKOWSKI'S OFFICE REPORTED TOTAL STAMP PURCHASES AVERAGING 4100 A YEAR IN 1987 THE VOLUME DROPPED OFF TO ABOUT 3000 INCLUDING A SINGLE LARGE PURCHASE BEFORE THE CHANGE OF SUPERVISORS BUT IN 1988 WHEN MR ROTA IS SAID TO HAVE CUT OFF ALL CASHFORSTAMPS TRANSACTIONS MR ROSTENKOWSKI'S OFFICE REPORTED STAMP PURCHASES TOTALING 4900 IT IS UNCERTAIN WHETHER THE INQUIRY WILL TOUCH OTHER LAWMAKERS BESIDES REP ROSTENKOWSKI MR ROTA ALSO IMPLICATED FORMER PENNSYLVANIA REP JOE KOLTER THE DEMOCRAT HAS DENIED WRONGDOING ACCORDING TO PROSECUTORS MR ROTA ON SOME OCCASIONS PROVIDED LARGE NUMBERS OF STAMPS TO MEMBERS OF CONGRESS AND LATER EXCHANGED THE STAMPS FOR CASH AND AT OTHER TIMES ALLEGEDLY SIMPLY GAVE CASH DIRECTLY IN EXCHANGE FOR STANDARD OFFICE VOUCHERS AVAILABLE TO ALL MEMBERS FALSELY MADE OUT FOR POSTAGE THE ALLEGATIONS MAY BE DIFFICULT TO PROVE STILL FOR THE CHAIRMAN AND FOR THE HOUSE HE HAS SERVED FOR MORE THAN 30 YEARS THE IMMEDIATE FALLOUT CAN ONLY BE BAD AFTER GOING AS FAR AS IT DID IN THE COURT FILINGS THE PROSECUTION TEAM COULD FIND IT DIFFICULT TO BACK AWAY FROM BRINGING CHARGES THE POST OFFICE ALLEGATIONS ARE PART OF A WIDER GOVERNMENT INVESTIGATION FOCUSING ON MR ROSTENKOWSKI'S PERSONAL FINANCES AND CAMPAIGN AND OFFICE EXPENDITURES IN CHICAGO AS WELL MR ROSTENKOWSKI'S CAMP IS PREPARING FOR THE WORST ANY INDICTMENT HOWEVER SMALL WOULD FORCE HIM TO SURRENDER HIS CHAIRMANSHIP TO HIS OLD IRRITANT AND THE RANKING DEMOCRAT FLORIDA REP SAM GIBBONS FOR THE WHITE HOUSE THE CHARGES COME AT THE WORST POSSIBLE TIME PRESIDENT CLINTON IS DEPENDING ON THE CHAIRMAN TO CHAMPION HIS ECONOMIC PACKAGE AND SWEEPING HEALTHCARE OVERHAUL THE TIMING OF THE ROTA PLEA ALSO BEDEVILS CONGRESSIONAL DEMOCRATS WHO HAVE MADE WHOLESALE CHANGES IN THE ADMINISTRATION OF THE HOUSE DISMANTLED THE SCANDALRIDDEN HOUSE BANK AND PROFESSIONALIZED THE OPERATIONS OF THE POST OFFICE BUT CAN'T SEEM TO BREAK THROUGH THE PUBLIC'S PERCEPTION OF RELENTLESS SCANDAL THE LAST REPORTED INCIDENT IS APRIL 1991 SAYS SPEAKER THOMAS FOLEY ALL OF THAT HAS CHANGED A JUDGE'S SON MR FOLEY HAS A MORE ELITE ACADEMIC IMAGE THAT IS THE VERY OPPOSITE OF MR ROSTENKOWSKI'S STREETTOUGH SWAGGER BUT THERE IS A PALPABLE SADNESS ABOUT BOTH MEN AND ABOUT THE HOUSE AS WELL WHEN SPEAKER JAMES WRIGHT FELL AMID AN ETHICS SCANDAL IN 1989 HE WAS HURT BY THE MOOD OF ANIMOSITY AMONG RANKANDFILE MEMBERS MR ROSTENKOWSKI'S ARROGANCE HAS EARNED HIM ENEMIES AS WELL BUT IN WASHINGTON A CITY THAT LONGS FOR LEADERSHIP HIS BIGFISTED STYLE IS VIEWED AMONG COLLEAGUES AS A HEALTHY SUPPLEMENT TO THE MORE REFINED MR FOLEY AND HIS YOUNGER MAJORITY LEADER RICHARD GEPHARDT INNUENDO AND SUPPOSITION ARE REPLACING EVEN ACCUSATION MR FOLEY SAID YESTERDAY REBUKING THOSE WHO HAVE CALLED FOR MR ROSTENKOWSKI TO STEP ASIDE FROM HIS CHAIRMANSHIP EVEN BEFORE AN INDICTMENT AND AS THE TAXWRITER CLOSETED HIMSELF WITH BUDGET NEGOTIATORS THE HOUSE FLOOR BROKE INTO PARTISAN FIGHTING OVER WHEN TO RELEASE STILLSECRET TESTIMONY FROM A TASKFORCE INVESTIGATION OF THE POST OFFICE FINALLY ON A 244183 VOTE THE CHAMBER PLEDGED TO PUBLICIZE THE MATERIAL BUT DELAYED ITS RELEASE UNTIL PROSECUTORS WHO FEAR IT WILL HURT THEIR INQUIRY LIFT THEIR OBJECTIONS THE CASE WHICH HAS BEEN PROCEEDING FOR 16 MONTHS WAS FIRST A BATTLE OF WILLS BETWEEN CONGRESSIONAL DEMOCRATS AND A REPUBLICAN PROSECUTOR JAY STEPHENS BUT WITH MR STEPHENS GONEHE IS SEEKING THE GOP SENATE NOMINATION IN VIRGINIAAND THE CLINTON ADMINISTRATION IN COMMAND OF THE JUSTICE DEPARTMENT THE CASE IS NOW A DIFFERENT TEST OF STRENGTH IT MATCHES MR ROSTENKOWSKI AGAINST OLD PATRONAGE ALLIES AND A REFORM MENTALITY HE HAS RESISTED AS DEMEANING AFTER THREE DECADES IN CONGRESS THE 65YEAROLD MR ROSTENKOWSKI IS ONE OF THE LAST OF A GENERATION OF NORTHERN URBAN DEMOCRATS WHO ONCE DOMINATED THE HOUSE WITH THEIR RURAL SOUTHERN COUNTERPARTS THE LATE HALE BOGGS A LOUISIANA MAJORITY LEADER WAS HIS EARLY PATRON MATCHED AGAINST HIS STRONGMAN IMAGE IS A GROWING ISOLATION THAT HAS COME WITH AGE AND CHANGES IN THE HOUSE ITSELF AS A PRODUCT OF CHICAGO WARD POLITICS MR ROSTENKOWSKI'S FATHER WAS A PROMINENT DEMOCRATIC POLITICIAN MR ROSTENKOWSKI HAS HIS OWN ETHICS CODE AND WAS NEVER PART OF THE REFORM MOVEMENT OF THE MID1970S WHAT DRIVES MR ROSTENKOWSKI MOST IS A DESIRE FOR CONTROL HE IS FAULTED NOW FOR RENTING OFFICE SPACE IN A BUILDING OWNED BY HIS SISTER YET THIS FITS THE TRADITION OF A MAN WHO STILL LIVES IN THE TOWNHOUSE HE INHERITED FROM HIS FATHER PATRONAGE IS PART OF THE SAME PATTERN LONG AFTER GIVING UP ANY HOPE OF BECOMING HOUSE SPEAKER THE CHAIRMAN REMAINED A FORCE IN THE CLOAKROOM WORLD OF HOUSE OFFICERS WHO COMMANDED DUCHIES OF THEIR OWN IN THE CAPITOL AND PROSPERED BY SMOOTHING THE LIVES OF MEMBERS BY OVERSEEING CHECKCASHING AND OTHER PERSONAL SERVICES ELECTED EACH CONGRESS BY THE DEMOCRATIC CAUCUS AND THEN THE FULL HOUSE THESE OFFICERS ARE POLITICIANS WITH THEIR OWN TURF BUT WITH THE ADVENT OF A NEW PROFESSIONAL POSTMASTER AND A FORMER ARMY GENERAL AS THE HOUSE'S PROFESSIONAL ADMINISTRATOR THE LINES OF AUTHORITY AND PATRONAGE ATMOSPHERE HAVE BEEN RADICALLY ALTERED IN THE PAST YEAR STILL REPUBLICANS COMPLAIN THAT CHANGES HAVEN'T COME FAST ENOUGH THE DEMOCRATIC PATRONAGE SYSTEM IS STILL IN PLACE COMPLAINS REP PAT ROBERTS OF KANSAS WHO LAST YEAR SERVED ON A TASK FORCE THAT INVESTIGATED IMPROPRIETIES AT THE POST OFFICE THE MOST PAINFUL ASPECT OF ANY EVENTUAL CASE AGAINST HIM WOULD BE THE TESTIMONY OF THE VERY PEOPLE WHOSE CAREERS REP ROSTENKOWSKI HELPED PRESERVE AND PROTECT INCLUDING MR ROTA AND JAMES C SMITH MR SMITH SUPERVISED THE CASH DISTRIBUTION AT THE POST OFFICE AND HIS OFFICE CONTAINED CASH AND STAMPS EVERYWHERE ACCORDING TO DANIEL SWILLINGER A LAWYER WHO WORKED ON AN EARLIER HOUSE INQUIRY INTO THE MATTER WHEN THE BIPARTISAN TASK FORCE CONDUCTED ITS OWN INVESTIGATION LAST YEAR OF FINANCIAL IRREGULARITIES AFTER LARGE AMOUNTS OF MISSING CASH HAD BEEN DETECTED IN A SPOT AUDIT BOTH MEN DENIED PROVIDING CASH TO LAWMAKERS NOW MR ROTA HAS AGREED TO COOPERATE WITH THE GRAND JURY IN RETURN FOR LENIENCY WHILE MR SMITH HAS BEEN GRANTED IMMUNITY FROM PROSECUTION FOR MR ROSTENKOWSKI THE INVESTIGATION HAS FORCED CHANGES WITNESS THE HOUSE DEMOCRATS' ANNUAL RETREAT EARLIER THIS YEAR THE OLD DAN ROSTENKOWSKI THE PROUD POWERBROKER NEVER ATTENDED THE ANNUAL FUNCTION OF MERE RANKANDFILE MEMBERS THIS YEAR HE NOT ONLY ATTENDED THE EVENT AT BALTIMORE'S JOHNS HOPKINS UNIVERSITY BUT HE TRIED HARD TO BE LIKED HE WORE CASUAL ATTIRE AND MINGLED AT THE CLOSE OF THE EVENING HE JOINED A CONGA LINE WHICH CONCLUDED WHEN HE STOOD ON A CHAIR IN THE MIDDLE OF THE DANCE FLOOR AND WAVED HIS ARMS IN RHYTHM WITH THE MUSIC WHILE HE STILL TAKES THE 5 AM FLIGHT OUT OF O'HARE ON TUESDAY MORNING AND WORKS LONG DAYS THE PROBE HAS SAPPED SOME OF HIS ENERGY DURING A RECENT SESSION WITH A LOBBYIST OF LONG ACQUAINTANCE HE DOZED OFF TWICE ONE NIGHT HE TURNED TO A FORMER COLLEAGUE AND CONFESSED IN AN ANGUISHED TONE THEY'VE SUBPOENAED MY CHILDREN A FEW WEEKS AGO ALL FOUR OF HIS DAUGHTERS APPEARED BEFORE THE GRAND JURY THAT JUST KILLED HIM SAYS FORMER REP TOM DOWNEY A NEW YORKER WHO ONCE SERVED ON THE WAYS AND MEANS PANEL RECENTLY HE ATTENDED A SERIES OF SMALL FUNDRAISING DINNERS THROWN BY FORMER STAFFERS AND A BROAD CIRCLE OF LOBBYIST FRIENDS HE TALKS ABOUT THE PRESIDENCY THE TAX BILL CONGRESS NOT ABOUT HIS TRAVAILS BUT MOST OF THE PEOPLE WHO CONTRIBUTED 5000 TO ATTEND KNOW THAT THE MONEY MAY GO NOT TO HIS REELECTION DRIVE THERE IS SPECULATION THAT HE WON'T RUN AGAIN BUT TO HELP PAY FOR HIS LEGAL DEFENSE HIS LEGAL FEES ARE WELL INTO SIX FIGURES EVEN WHILE MIRED IN THE POST OFFICE PROBE THE CHAIRMAN'S ADMIRERS STRESS THAT HE IS STILL ONE OF THE MOST EFFECTIVE LEGISLATORS PRESIDENT CLINTON WENT OUT OF HIS WAY TO PRAISE THE CHAIRMAN THIS WEEK MINDFUL OF HIS POTENTIALLY CRUCIAL ROLE IN THE BUDGET AND HEALTHCARE DEBATES HE HAS EXTRAORDINARY ACCOMPLISHMENTS THAT ARE HISTORIC AND ENDURING AND THAT CAN'T BE TAKEN AWAY FROM HIM SAYS FORMER DEMOCRATIC REP DOWNEY 9307230025 930723 INVESTIGATORS CONTINUE HUNT FOR CLUES IN APPARENT SUICIDE OF CLINTON AIDE BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US PARK SERVICE INVESTIGATORS INTERVIEWED WHITE HOUSE OFFICIALS IN AN EFFORT TO RESOLVE THE MYSTERY SURROUNDING THE DEATH OF DEPUTY COUNSEL VINCENT FOSTER JR ONE OF PRESIDENT CLINTON'S OLDEST FRIENDS MR FOSTER WAS FOUND TUESDAY NEXT TO A CIVIL WARERA CANNON IN A PARK ON THE VIRGINIA SIDE OF THE POTOMAC RIVER WITH AN 80YEAROLD COLT REVOLVER IN HIS HAND THE PARK SERVICE SAID IN ITS INITIAL REPORT THAT IT APPEARED TO BE A SUICIDE AND A SPOKESMAN SAID YESTERDAY THAT NOTHING HAS TURNED UP TO CAUSE ANYONE TO BELIEVE ANYTHING ELSE I DON'T THINK THERE IS ANYTHING MORE TO KNOW A WEARY MR CLINTON TOLD REPORTERS HIS FAMILY HIS FRIENDS HIS COWORKERS HAVE BEEN UP REAL LATE TWO NIGHTS IN A ROW REMEMBERING CRYING LAUGHING TALKING ABOUT HIM I DON'T THINK THERE IS ANYTHING ELSE PRESS SECRETARY DEE DEE MYERS SAID THE INVESTIGATION WHICH SHE DESCRIBED AS FAIRLY LIMITED WAS SIMPLY AN EFFORT TO ESTABLISH THAT THIS WAS IN FACT A SUICIDE BUT MAJ ROBERT HINES A SPOKESMAN FOR THE PARK SERVICE POLICE SAID THAT WAS A MISUNDERSTANDING WE ARE LOOKING FOR REASONS TO EXPLAIN WHY THIS MAN COMMITTED SUICIDE HE SAID WE ARE HOPING TO FIND SOME INFORMATION TO LEAD US TO UNDERSTAND WHY HE TOOK HIS LIFE INVESTIGATORS SEARCHED MR FOSTER'S WHITE HOUSE OFFICE FOR ANY EVIDENCE TO EXPLAIN HIS DECISION TO TAKE HIS LIFE MR FOSTER LEAVES A WIFE AND THREE CHILDREN TWO ATTENDING COLLEGE AND ONE IN HIGH SCHOOL THE JUSTICE DEPARTMENT SAID THE SEARCH FAILED TO TURN UP A SUICIDE NOTE OR ANYTHING OF AN EVIDENTIARY NATURE LINKED TO MR FOSTER'S DEATH THE SEARCH WAS CONDUCTED BY JUSTICE DEPARTMENT ATTORNEYS FEDERAL BUREAU OF INVESTIGATION AGENTS AND PARK SERVICE INVESTIGATORS WHITE HOUSE COUNSEL BERNARD NUSSBAUM SEPARATED PRESIDENTIAL MATERIAL FROM MR FOSTER'S PERSONAL FILES A DEPARTMENT SPOKESMAN SAID THE INQUIRY WOULD CONTINUE BECAUSE THE INVESTIGATORS WANT TO KNOW IF IT WAS SUICIDE WHY MR FOSTER CHOSE TO KILL HIMSELF HE SAID THEY ALSO WANT TO MAKE SURE THERE WAS NO FOUL PLAY THE CHANCES OF WHICH HE ESTIMATED TO BE ONE IN A MILLION MR FOSTER ATE LUNCH BY HIMSELF AT HIS DESK TUESDAY AND THEN LEFT ABOUT 1 PM SAYING HE WOULD BE BACK LATER HIS BODY WAS DISCOVERED IN FORT MARCY ONE OF A NUMBER OF FORTS BUILT IN A RING AROUND THE FEDERAL CAPITAL IN THE CIVIL WAR ABOUT 615 PM INVESTIGATORS SAID THEY DON'T KNOW HIS WHEREABOUTS BETWEEN THE TIME HE LEFT THE WHITE HOUSE AND WHEN HE WAS FOUND ACROSS THE RIVER IN VIRGINIA NOR SAID MAJ HINES DO INVESTIGATORS KNOW WHO OWNED THE OLD 38CALIBER COLT REVOLVER EARLY REPORTS THAT IT WAS PART OF A SET ARE UNTRUE HE SAID THE CONFUSION AROSE BECAUSE THE GUN HAD TWO SERIAL NUMBERS BUT HE SAID THAT THE BARREL HAD BEEN REPLACED AS DEPUTY WHITE HOUSE COUNSEL MR FOSTER HAD BEEN INVOLVED IN A NUMBER OF MISHANDLED PRESIDENTIAL APPOINTMENTS AND HAD PLAYED A SECONDARY ROLE IN THE WHITE HOUSE'S BUNGLED EFFORT TO PURGE ITS TRAVEL OFFICE MR CLINTON WAS SCHEDULED TO FLY TO LITTLE ROCK ARK AND DELIVER A EULOGY TODAY FOR HIS CHILDHOOD FRIEND AT FUNERAL SERVICES IN ST ANDREW'S CATHEDRAL MR FOSTER WAS TO BE BURIED IN TINY HOPE WHERE HE AND THE PRESIDENT WERE CHILDHOOD FRIENDS AND NEIGHBORS 9307230024 930723 SALOMON TO LOSE HILIBRAND IN EXODUS OF ARBITRAGERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LAWRENCE E HILIBRAND SALOMON BROTHERS INC'S MOST POWERFUL BONDARBITRAGE EXECUTIVE AND ONE OF WALL STREET'S HIGHEST PAID TRADERS PLANS TO QUIT THE BIG SECURITIES FIRM AT YEAR END THE DEPARTURE OF MR HILIBRAND 34 YEARS OLD IS A BLOW TO THE SALOMON INC UNIT AND RAISES QUESTIONS ABOUT ITS ABILITY TO MUSTER FAT PROFITS IN THE NEXT FEW YEARS ANALYSTS SAID MR HILIBRAND WHO MADE 23 MILLION IN 1990 PAY HEADS SALOMON'S 20MEMBER US BONDARBITRAGE UNIT THE FIRM'S WORLDWIDE ARBITRAGE GROUP IN WHICH THE US UNIT PLAYS A LARGE ROLE HAS ACCOUNTED FOR 87 OF SALOMON BROTHERS' PRETAX PROFIT SINCE 1990 MR HILIBRAND'S DEFECTION BLEMISHED WHAT COULD HAVE BEEN SALOMON'S BEST DAY SINCE EMERGING FROM ITS 1991 TREASURYAUCTION BIDDING SCANDAL SALOMON SAID IT HAD SECONDQUARTER PROFIT OF 433 MILLION OR 375 A SHARE MORE THAN DOUBLE THE 211 MILLION OR 168 A SHARE A YEAR EARLIER AND THE HIGHEST QUARTERLY NET INCOME EVER FOR A PUBLICLY TRADED SECURITIES FIRM THE RESULTS WERE NEARLY TRIPLE ANALYSTS' CONSENSUS FORECAST OF 132 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC YET MR HILIBRAND'S UNEXPECTED DEPARTURE HELPED SEND THE STOCK DOWN 375 CENTS A SHARE TO 38875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING A MEMBER OF SALOMON BROTHERS' INFLUENTIAL EXECUTIVE COMMITTEE MR HILIBRAND HELPED LEAD THE FIRM'S PUSH INTO LUCRATIVE HIGHTECH ARBITRAGE TRADING HIS RESIGNATION IS THE MOST JARRING IN A STRING OF RECENT DEPARTURES IN THE ARBITRAGE OPERATION MR HILIBRAND DIDN'T DISCLOSE HIS REASONS BUT WALL STREET EXECUTIVES SAY HE PLANS TO JOIN SEVERAL OTHER FORMER SALOMON ARBITRAGE TRADERS INCLUDING JOHN MERIWETHER ERIC ROSENFELD VICTOR HAGHANI AND GREGORY HAWKINS IN LAUNCHING THEIR OWN BONDTRADING OPERATION MR HAWKINS LEFT SALOMON JUST THIS WEEK THE SECRETIVE MR HILIBRAND WHO NEVER GRANTS INTERVIEWS AND ASKED A SALOMON EXECUTIVE TO SHRED HIS PICTURE IN EARLY 1991 SO THE MEDIA COULDN'T GET IT DECLINED TO COMMENT BEYOND A STATEMENT THAT SAID IN PART BY ANNOUNCING TODAY MY INTENTION TO RESIGN I WILL BE ABLE TO HELP THE FIRM MAKE A SUCCESSFUL TRANSITION THAT MAXIMIZES ITS FUTURE PROSPECTS IN FIXEDINCOME ARBITRAGE A LOT OF TALENT IS GONE FROM THE FIRM SAYS JAMES HANBURY AN ANALYST AT WERTHEIM SCHRODER & CO THEY'D BETTER BE IN THE CUSTOMERBUSINESS AREA BECAUSE IF THESE DEPARTURES INDICATE A PERMANENT CHANGE IN THE ABILITY OF THE COMPANY TO MAKE MONEY IT COULD BE A PROBLEM BUT MR HANBURY SAID SALOMON HAS BEEN ABLE TO SURVIVE PAST MASS DEFECTIONS ADDING THIS IS A TRADING HOUSE FROM TOP TO FINISH AND THERE'S NO WAY ONE PERSON MAKES IT FOR THEM SAID A WALL STREET EXECUTIVE THE REAL QUESTION IS WHETHER SOMEONE FROM THE BENCH WILL BE ABLE TO STEP INTO HIS SHOES SALOMON EXECUTIVES DECLINED TO COMMENT ON THE DEPARTURE A REPLACEMENT WON'T BE NAMED FOR SEVERAL MONTHS PEOPLE FAMILIAR WITH THE MATTER SAY MR HILIBRAND MARCHED INTO THE OFFICE OF SALOMON BROTHERS' CHAIRMAN DERYCK MAUGHAN ON WEDNESDAY AFTERNOON AND SPENT THE REST OF THE DAY TALKING ABOUT THE MOVE MR HILIBRAND TOLD MR MAUGHAN THAT HE OWED IT TO THE FIRM AND HIS PEOPLE TO ANNOUNCE HIS PLANS NOW TO LEAVE AT YEAR END ACCORDING TO PEOPLE WHO WERE BRIEFED ON THE MEETING MR HILIBRAND DIDN'T TELL MR MAUGHAN WHY HE WAS LEAVING NOR DID HE ASK FOR MORE MONEY OR CLOUT THE PEOPLE SAID AND HE SAID THERE WAS NOTHING THAT MR MAUGHAN COULD DO TO GET HIM TO STAY THE PEOPLE ADDED UNLIKE THE ROUGHANDTUMBLE TRADERS OF THE PAST HIGHTECH TRADERS LIKE MR HILIBRAND USE RIGOROUS MATHEMATICAL METHODS TO DETERMINE THE APPROPRIATE PRICE RELATIONSHIPS BETWEEN BONDS BOND FUTURES AND BOND OPTIONS THE BONDARBITRAGE GROUP MAKES ITS MONEY BY MAKING HUGE BETS WITH POSITIONS TOTALING BILLIONS OF DOLLARS ON TINY PRICE DISCREPANCIES BETWEEN DIFFERENT SECURITIES MR HILIBRAND LIKE MESSRS ROSENFELD AND HAWKINS AMONG OTHERS WAS SCHOOLED AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THE ONE REMAINING PRINCIPAL MEMBER OF THE ARBITRAGE GROUP THAT WAS FORMED SEVERAL YEARS AGO BY MR MERIWETHER IS PETER DAGHER AFTER A DISAPPOINTING FIRST QUARTER THE BONDARBITRAGE GROUP CONTRIBUTED 523 MILLION IN REVENUE TO THE FIRM IN THE SECOND QUARTER SALOMON DIDN'T DISCLOSE IN WHICH MARKETS IT MADE THE MONEY BUT TRADERS SAY SALOMON MADE MUCH OF THAT IN AN ARCANE BUT EXTREMELY LUCRATIVE ARBITRAGE PLAY THAT HINGED ON THE TAX DISADVANTAGES OF ITALIAN GOVERNMENT BONDS EARLY THIS YEAR WHEN YIELDS ON 10YEAR ITALIAN BONDS WERE AT ABOUT 14 THE HIGHEST RATE OFFERED BY EUROPEAN DEBT SALOMON WENT LONG ON THE BONDS TRADERS SAY AND SOLD LIRADENOMINATED INTERESTRATE SWAPS IN APRIL ITALIAN FINANCE AUTHORITIES ANNOUNCED THAT THEY WOULD SPEED UP REPAYMENT TO FOREIGNERS OF WITHHOLDING TAX ON INTEREST RECEIPTS PROMPTING A RALLY IN ITALIAN DEBT YIELDS ON THE BONDS ARE NOW ABOUT THREE PERCENTAGE POINTS LOWER FOR THE QUARTER THE SALOMON BROTHERS' SECURITIES SEGMENT HAD RECORD PRETAX EARNINGS OF 783 MILLION A 69 JUMP FROM THE 462 MILLION A YEAR EARLIER THE PHIBRO ENERGY DIVISION HAD A PRETAX PROFIT FOR THE QUARTER OF JUST 3 MILLION DOWN FROM 18 MILLION A YEAR EARLIER PHIBRO'S RESULTS CONTINUED TO BE NEGATIVELY IMPACTED BY A LACK OF DEMAND FOR ENERGYRELATED PRODUCTS SALOMON SAID FOR THE FIRST TIME SALOMON BROKE OUT ITS REVENUE AND PRETAX PROFIT BETWEEN CLIENTDRIVEN BUSINESSES AND PROPRIETARY TRADING SALOMON'S CLIENTDRIVEN BUSINESSES WHICH INCLUDE BOND AND STOCK SALES AND TRADING INVESTMENT BANKING AND CURRENCY TRADING AMONG OTHER THINGS ACCOUNTED FOR 30 OF SALOMON BROTHERS' PRETAX EARNINGS SINCE 1990 THE FIRM SAID SO FAR THIS YEAR CLIENTDRIVEN BUSINESS ACCOUNTED FOR 88 OF PRETAX PROFIT BECAUSE OF PROPRIETARYTRADING LOSSES EARLIER THIS YEAR ALEXANDRA PEERS CONTRIBUTED TO THIS ARTICLE 9307230023 930723 CANADA AND US EXPECTED TO RESOLVE BEER DISPUTE SOON OTTAWA THE US AND CANADA ARE EXPECTED TO SETTLE SOON THEIR LONGSTANDING BEER TRADE DISPUTE INDUSTRY AND GOVERNMENT OFFICIALS SAID THE DISPUTE INVOLVES US OBJECTIONS TO RESTRICTIONS ON US AND OTHER FOREIGN BEER BY THE CANADIAN PROVINCES PRINCIPALLY ONTARIO THE US OBJECTS TO AN ONTARIO ENVIRONMENT TAX APPLIED TO BEER SOLD IN ALUMINUM CANS MOST US BEER IMPORTED INTO CANADA IS SOLD IN CANS WHILE CANADIAN BEER IS MAINLY SOLD THERE IN BOTTLES US BREWERS ALSO OBJECT TO ONTARIO'S MINIMUM PRICE RULES AND OTHER FEES WHICH THEY CLAIM MAKE US BEER LESS PRICE COMPETITIVE THE US LEVIED LAST YEAR A 3 IMPORT DUTY ON EACH 24BOTTLE CASE OF BEER FROM ONTARIO TO PROTEST THE RESTRICTIONS IN RETALIATION ONTARIO IMPOSED SIMILAR DUTIES ON SOME US BEER IMPORTS INDUSTRY AND GOVERNMENT OFFICIALS SAID THE TWO COUNTRIES HAVE AGREED THAT ONTARIO SHOULD BE ALLOWED TO KEEP ITS ENVIRONMENTAL LEVY OF 10 CANADIAN CENTS PER CAN 78 US CENTS BUT THE PROVINCE MUST RELAX ITS MINIMUM PRICE RULES AND DISTRIBUTION CHARGES ON FOREIGN BEER THE OFFICIALS SAID SEVERAL OTHER PROVINCES ARE RESISTING A US DEMAND THAT THEY REFRAIN FROM INTRODUCING NEW MEASURES THAT WOULD HAMPER THE SALE OF FOREIGN BEER ONE US INDUSTRY OFFICIAL SAID AN AGREEMENT COULD BE REACHED AS EARLY AS NEXT WEEK IF THE PROVINCES ACCEPT THE PROPOSED TERMS CANADIAN BEER EXPORTS ACCOUNT FOR ABOUT 1 OF US SALES US BEER PRODUCERS SUPPLY ABOUT 2 OF THE CANADIAN BEER MARKET G HEILEMAN BREWING CO OF LA CROSSE WIS AND DETROITBASED STROH BREWERY CO HAVE LED THE FIGHT FOR GREATER ACCESS TO CANADA'S BEER MARKET 9307230022 930723 TECHNOLOGY MCI POSTS FLAT NET AND RISE IN REVENUE FOR SECOND QUARTER WASHINGTON MCI COMMUNICATIONS CORP REPORTED FLAT SECONDQUARTER EARNINGS AFTER TAKING A CHARGE FOR EARLY DEBT PAYMENT BUT STRONGER REVENUE INDICATES THAT THE TELECOMMUNICATIONS CONCERN CONTINUES TO CHIP AWAY AT THE MARKET FOR LONGDISTANCE TELEPHONE SERVICES MCI SAID NET INCOME WAS 150 MILLION OR 27 CENTS A SHARE COMPARED WITH 149 MILLION OR 26 CENTS A SHARE A YEAR EARLIER THE 1993 QUARTER INCLUDES A CHARGE OF 28 MILLION OR FIVE CENTS A SHARE FOR EARLY REDEMPTION OF DEBT THE MOVE ALONG WITH PREVIOUS REDEMPTIONS RESULTED IN SAVINGS OF 6 MILLION IN THE PERIOD MCI SAID OPERATING PROFIT ROSE 17 TO 348 MILLION WITH TRAFFIC GROWTH RISING ALMOST 13 COMPARED WITH AN INDUSTRY GROWTH RATE OF OVER 7 IT WOULD APPEAR THAT WE CONTINUED TO ADD ABOUT HALF A POINT IN MARKET SHARE FOR LONGDISTANCE SERVICES SAID DOUGLAS MAINE MCI'S CHIEF FINANCIAL OFFICER MCI'S PRINCIPAL COMPETITORS ARE AMERICAN TELEPHONE & TELEGRAPH CO AND SPRINT CORP REVENUE ROSE 12 TO 293 BILLION FROM 261 BILLION MCI SAID PRICING WAS STABLE AND THAT IT EXPECTED INDUSTRY REVENUES TO GAIN MOMENTUM AS THE ECONOMY REVIVED MCI BOOSTED MARKETING AND ADMINISTRATIVE EXPENDITURES BY 40 MILLION IN THE SECOND QUARTER FROM THE FIRST QUARTER AND ACCORDING TO FRANK GOVERNALI ANALYST AT FIRST BOSTON CORP IS EXPECTED TO SPEND AN ADDITIONAL 40 MILLION IN THE THIRD PERIOD IT'S A WISE MOVE THAT WILL ACCELERATE REVENUE GROWTH AND GENERATE INCREMENTAL EARNINGS HE SAID MCI HAD ANNOUNCED A 2FOR1 STOCK SPLIT ON JULY 9 AND HAD ABOUT 554 MILLION SHARES OUTSTANDING AT THE END OF THE MONTH THE COMPANY'S SHARES CLOSED AT 2875 A SHARE DOWN 875 CENTS IN OVERTHECOUNTER TRADING YESTERDAY 9307230021 930723 MARKETING ZYMAN CONFRONTS CLASSIC COKE PROBLEMS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA SERGIO ZYMAN'S RETURN TO THE MARKETING SPOTLIGHT AT COCACOLA CO PUTS HIM FACE TO FACE WITH SOME OF THE SAME PROBLEMS HE CONFRONTED AND HELPED REMEDY MORE THAN A DECADE AGO US SOFTDRINK VOLUME GROWTH HAS AGAIN SLOWED TO ABOUT 2 LAST YEAR FROM MORE THAN TWICE THAT IN THE LATE 1980S AS WAS TRUE DURING MR ZYMAN'S LAST TENURE AT COKE AN AGING POPULATION HAS BEGUN TURNING AWAY FROM CORE COLA BRANDS THIS TIME LEAVING DIET COLAS AND IN REGULAR COLAS PEPSI AND COKE ARE NECK AND NECK AGAIN IN THE IMPORTANT SUPERMARKET CHANNEL THE BOLD AND CONTROVERSIAL MR ZYMAN WHO WAS NAMED COKE'S TOP MARKETER EARLIER THIS WEEK FACES SOME NEW PROBLEMS AS WELL SALES OF DIET COKE WHICH HELPED THE COMPANY OUT OF ITS BIND A DECADE AGO BY SPURRING GROWTH THROUGH MUCH OF THE 1980S FELL LAST YEAR FOR THE FIRST TIME THE POPULARITY OF COLA ITSELF HAS SUFFERED AS CONSUMERS HAVE TURNED TO TRENDIER NEW AGE AND CLEAR SOFT DRINKS AND PRIVATELABEL COMPETITORS ARE COMING ON STRONG COKE'S DOMESTIC BUSINESS CONTRIBUTES ONLY ABOUT 20 OF ITS PROFITS BUT IT REMAINS AN IMPORTANT BASE ON WHICH COKE BUILDS ITS BUSINESS AROUND THE WORLD IMPORTANT ENOUGH INDUSTRY EXPERTS SAY FOR COKE TO TAKE THE DRAMATIC STEP OF BRINGING MR ZYMAN BACK HE IS A CHANGE AGENT SAYS MICHAEL MCMULLEN A FORMER COCACOLA MARKETER WHO WORKED WITH HIM AND WHO NOW CONSULTS FOR COKE ADDS ONE MARKETER FOR RIVAL PEPSICO INC THIS IS NOT A MAINTENANCE MOVE ANYTHING HE CAN DO TO STIMULATE THE MARKET WILL HELP US TOO TO SHORE UP ITS PRODUCTS COKE ISN'T EXPECTED TO RESORT TO THE KINDS OF PRICE CUTS AND RETRENCHMENT MOVES MADE RECENTLY BY ANOTHER CONSUMER PRODUCT GIANT PROCTER & GAMBLE CO COKE JUST REPORTED A 20 JUMP IN SECONDQUARTER PROFIT FUELED BY SOLID SALES GAINS OVERSEAS AND IN THE US IT HAD AN UNUSUALLY STRONG 6 INCREASE IN US SALES VOLUME IN THE PERIOD DUE IN PART TO PRICE CUTTING BY ITS DISTRIBUTORS AND STRONG SALES OF FOUNTAIN DRINKS STILL THE 47YEAROLD MR ZYMAN HAS HIS WORK CUT OUT FOR HIM ONE OF THE BIGGEST LONGTERM ISSUES HE MUST TACKLE IS THE SHRINKAGE OF THE COLA MARKET WHICH ACCOUNTED FOR 70 OF TOTAL SOFTDRINK SALES IN 1990 AND DROPPED TO 683 LAST YEAR THE MARKET SHARE OF THE NATION'S NO 1 COLA COCACOLA CLASSIC HAS BEEN FLAT AT ABOUT 195 FOR THE PAST FOUR YEARS ACCORDING TO THE MAXWELL CONSUMER REPORT ONE OF THE CHIEF WEAPONS AT MR ZYMAN'S DISPOSAL AND ONE OF HIS FAVORITES IS ADVERTISING THE NEW ALWAYS COCACOLA CAMPAIGN HAS BEEN LAUDED AS DIFFERENT AND EYECATCHING AND IT APPEARS TO HAVE SPARKED CONSUMER INTEREST IN COCACOLA SUPERMARKET SALES OF COCACOLA CLASSIC ROSE 3 IN THE YEAR ENDED IN MIDMARCH ACCORDING TO INFORMATION RESOURCES OUTPACING THE 16 GROWTH OF ALL COLAS BUT MARKETING EXPERTS SAY IT IS UNCLEAR WHETHER THE CAMPAIGN REALLY TAPS INTO THE CORE YOUTH MARKET ONE OF THE MAIN SHORTCOMINGS OF THE FORMER CAN'T BEAT THE REAL THING CAMPAIGN AND IT IS ALSO UNCLEAR WHAT MR ZYMAN'S RELATIONSHIP WILL BE WITH HOLLYWOOD SUPERAGENT MICHAEL OVITZ AND HIS CREATIVE ARTISTS AGENCY WHICH PRODUCED THE BULK OF THE SPOTS IN THE NEW CAMPAIGN COKE'S TOP EXECUTIVES EMPLOYED CAA TO HELP IT TAP INTO WHAT IS HIP AND TRENDY AND YESTERDAY COKE SAID IT AUTHORIZED CAA TO MAKE 30 NEW COMMERCIALS FOR COCACOLA CLASSIC THE NEW SPOTS USING THE ALWAYS SLOGAN WILL BEGIN APPEARING LATER THIS YEAR THE SOMETIMES ABRASIVE MR ZYMAN ISN'T EXPECTED TO BE AS STRONG AN ADVOCATE OF CAA AS WAS HIS PREDECESSOR PETER S SEALEY SAY MARKETERS WHO HAVE WORKED WITH THEM FROM 1979 TO 1986 WHEN HE LEFT UNDER A CLOUD AFTER THE NEW COKE FLOP MR ZYMAN SERVED IN A VARIETY OF MARKETING ROLES AT COKE FOCUSING ON THE DOMESTIC SOFTDRINK BUSINESS MR SEALEY BEFORE RETURNING TO COKE HIMSELF IN 1990 HAD LAST BEEN A MARKETING EXECUTIVE AT COLUMBIA PICTURES WHEN COKE OWNED THE STUDIO IN THE 1980S AND WAS MORE ENAMORED OF HOLLYWOOD MR ZYMAN WASN'T AVAILABLE TO BE INTERVIEWED YESTERDAY BUT HE PROBABLY WILL SEEK TO RESTORE A MORE YOUTHFUL VITALITY TO COCACOLA CLASSIC IN THE EARLY 1980S HE LEANED HARD ON THE COMPANY'S AD AGENCIES WHICH PRODUCED THE VIBRANT AND POPULAR COKE IS IT CAMPAIGN AND HE WAS MAINLY RESPONSIBLE FOR PUSHING THE MAX HEADROOM CCCATCH THE WAVE COMMERCIALS SEVERAL YEARS AGO FOR NEW COKE MR ZYMAN IS ONE OF COKE'S BIGGEST PROPONENTS OF USING ADVERTISING TO ATTACK PEPSI HE HELPED DEVELOP THE STRATEGY IN THE LATE 1980S OF PITTING DIET COKE AGAINST PEPSI TRYING TO PERSUADE TV VIEWERS THROUGH A SERIES OF SPOTS THAT MORE AND MORE PEPSI DRINKERS WERE SWITCHING TO DIET COKE PEPSI COUNTERED WITH ITS OWN REBUTTAL ADS AND THE BRIEF ONAIR BATTLE HELPED SPARK SALES GAINS FOR BOTH COMPANIES ANOTHER PROBLEM MR ZYMAN FACES IS THE DECLINE IN SALES OF DIET COKE AND DIET COLAS OVERALL DIET COLAS ARE PROBABLY THE BIGGEST VICTIM OF ROVING TASTEBUDS THEY ARE QUAFFED BY OLDER DRINKERS WHO SEEM RESTLESS LATELY IN THE SEARCH FOR NEW TASTES AND BEVERAGES THAT SEEM MORE HEALTHFUL SUCH AS ICED TEA ALSO IN THE PAST TWO YEARS COKE HAS SCALED BACK MARKETING SPENDING ON DIET COKE IN PART TO HELP PUMP UP SALES OF ITS SLUGGISH FLAGSHIP COCACOLA CLASSIC COKE MARKETERS SAY MOREOVER THE SEVENMONTHOLD TASTE IT ALL CAMPAIGN NEEDS TO BE FIXED AND THE COMPANY IS REVIEWING HOW TO DO IT COKE WILL BE TAPPING INTO MR ZYMAN'S NEWPRODUCT EXPERTISE COKE AND PEPSI FOR THAT MATTER HAVE BEEN TRYING TO ADDRESS THE DEFECTION OF COLA DRINKERS BY INTRODUCING AN ARRAY OF CLEAR COLAS ICED TEAS FRUIT DRINKS AND GATORADEKNOCKOFF SPORTS DRINKS MR ZYMAN AS A COMPANY MARKETER AND SUBSEQUENTLY AS A CONSULTANT HAS HAD A HAND IN INTRODUCING CHERRY COKE MINUTE MAID ORANGE SODAS AND THE COLORLESS DIET DRINK TAB CLEAR ALL OF THOSE HOWEVER ADD ONLY WHAT THE INDUSTRY CALLS INCREMENTAL VOLUME IN THE MAINSTREAM COLA BUSINESS MR ZYMAN MAY CHOOSE TO BRING A MIDCALORIE COLA TO THE MARKET THAT COKE HAS BEEN STUDYING AND DEVELOPING FOR ABOUT SIX YEARS ACCORDING TO HIS ASSOCIATES THE COLA WHICH HAS HAD THE WORKING NAME COKE LIGHT TASTES SWEETER AND MORE LIKE REGULAR COLAS BECAUSE IT USES A SMALLER AMOUNT OF ARTIFICIAL SWEETENERS THE PURPOSE OF A MIDCALORIE COLA IS TO LURE THOSE WHO WANT A SOFT DRINK THAT IS LESS FATTENING BUT TASTES GREAT INTERNALLY DEBATE HAS RAGED ABOUT WHETHER SUCH A DRINK WOULD CANNIBALIZE COCACOLA CLASSIC THE FEELING THAT IT ULTIMATELY WOULD HAS KEPT COKE FROM UNLEASHING IT BUT IT COULD BE THE KIND OF PRODUCT THAT MR ZYMAN COULD RUSH OUT TO REJUVENATE INTEREST IN THE COLA MARKET ASSOCIATES SAY 9307230020 930723 CORRECTIONS & AMPLIFICATIONS THOMAS HANLEY AN ANALYST WITH FIRST BOSTON CORP WAS QUOTED INCOMPLETELY IN A PAGEONE ARTICLE YESTERDAY THAT SAID HE FELT DISAPPOINTMENT ABOUT BANKAMERICA'S MERGER WITH SECURITY PACIFIC CORP MR HANLEY SAID HE FEELS MILD DISAPPOINTMENT ABOUT THE MERGER 9307230018 930723 WHAT'S NEWS WORLDWIDE BRITAIN'S PRIME MINISTER CALLED FOR A VOTE OF CONFIDENCE TODAY MAJOR CALLED THE CONFIDENCE VOTE AFTER LOSING A KEY FIGHT IN THE HOUSE OF COMMONS OVER THE MAASTRICHT TREATY ON EUROPEAN UNITY IN A POSSIBLY RISKY MOVE THE PRIME MINISTER STAKED HIS FUTURE ON TODAY'S VOTE IF THE GOVERNMENT LOSES IT WOULD RESULT IN AN EARLY ELECTION THAT LIKELY WOULD END 14 YEARS OF CONSERVATIVE PARTY RULE HOWEVER MAJOR IS BETTING THAT REBEL TORY MEMBERS OF PARLIAMENT WHO OPPOSE THE TREATY AND VOTED AGAINST THE GOVERNMENT LAST NIGHT WILL RETURN TO THE FOLD AND SUPPORT HIM IN THE VOTE OF CONFIDENCE MOST COMMENTATORS IN LONDON SAID MAJOR IS LIKELY TO WIN TODAY'S PARLIAMENTARY VOTE WHICH WOULD BE ATTACHED TO A MOTION APPROVING THE MAASTRICHT TREATY ON TERMS HE DEEMS ACCEPTABLE HOUSE DEMOCRATS CAST ASIDE REPUBLICAN CHARGES OF A POLITICAL COVERUP AND VOTED TO KEEP RECORDS OF AN INTERNAL HOUSE POST OFFICE INVESTIGATION CONFIDENTIAL IN ACCORDANCE WITH A TOP US PROSECUTOR'S WISHES THE VOTE WAS 244183 WITH 242 DEMOCRATS VOTING TO KEEP THE MATERIAL CONFIDENTIAL PLANS FOR BOSNIAN PEACE TALKS STUMBLED AFTER SERBS ATTACKED SARAJEVO WITH ONE OF THE HEAVIEST ARTILLERY BOMBARDMENTS IN WEEKS THE SHELLING AND FIGHTING IN OTHER REGIONS PROMPTED BOSNIA'S MUSLIM PRESIDENT TO ASK THAT TOMORROW'S SCHEDULED GENEVA TALKS BE DELAYED UNTIL SUNDAY SERBS AND CROATS AGREED UN OFFICIALS SAID EMERGENCY FLOOD AID WAS DELAYED IN THE HOUSE BECAUSE OF DISPUTES OVER HOW TO PAY FOR THE 3 BILLION PACKAGE OF ASSISTANCE FOR THE MIDWEST IT WASN'T CLEAR WHEN A VOTE WOULD BE HELD ON THE PACKAGE WHICH THE ADMINISTRATION HAD URGED CONGRESS TO PASS AS QUICKLY AS POSSIBLE THE DELAY TOUCHED OFF ANGRY OUTBURSTS BY MIDWESTERN LAWMAKERS TAP WATER WAS RESTORED IN DES MOINES IOWA AFTER A 12DAY INTERRUPTION CAUSED BY FLOODING MEANWHILE ENGINEERS ALONG THE MISSISSIPPI WORRIED THAT HUNDREDS OF MILES OF SATURATED LEVEES COULD CRUMBLE AS THE HIGH WATER PERSISTS MIYAZAWA QUIT AS JAPAN'S PRIME MINISTER TO TAKE RESPONSIBILITY FOR SUNDAY'S POOR ELECTION SHOWING BY THE LIBERAL DEMOCRATS HE ALSO RESIGNED AS PARTY LEADER THE ANNOUNCEMENT IGNITED A FEUD IN WHICH YOUNG LDP MEMBERS WON THEIR DEMAND FOR THE NEXT PARTY CHIEF TO BE CHOSEN IN AN OPEN VOTE NOT BY PARTY ELDERS ABORTIONRIGHTS FORCES WON A POLITICAL VICTORY AS THE SENATE APPROPRIATIONS COMMITTEE VOTED 1514 TO REJECT A PLAN TO KEEP ABORTION OUT OF FEDERAL WORKERS' HEALTH COVERAGE HOWEVER DEBATE OVER THE ISSUE IS EXPECTED TO FLARE AGAIN WHEN THE FULL SENATE TAKES UP ITS VARIOUS SPENDING BILLS SOME SENATORS EXPRESSED EXASPERATION OVER SUPREME COURT NOMINEE GINSBURG'S RETICENCE ON CONTROVERSIAL ISSUES BUT HER CONFIRMATION REMAINED ALL BUT ASSURED IN HER THIRD DAY OF JUDICIARY COMMITTEE HEARINGS SHE GENERALLY STUCK TO HER POLICY OF NO HINTS NO FORECASTS NO PREVIEWS OF HOW SHE WOULD DECIDE CASES IRAQ DECLARED IT WAS READY TO COMPLY WITH A UN RESOLUTION ON LONGTERM WEAPONS MONITORING BUT STRESSED THAT BAGHDAD EXPECTED CONCESSIONS IN RETURN IRAQI OFFICIALS SAID THAT MONITORING SHOULD NOT INFRINGE ON INTERNAL SECURITY AND SOVEREIGNTY AND THAT OIL EXPORTS SHOULD BE ALLOWED TO RESUME ON THE ADVICE OF ARMS INSPECTORS NEW AIDS CASES ARE INCREASING ALMOST FOUR TIMES AS FAST AMONG WOMEN AS AMONG MEN FEDERAL OFFICIALS SAID THOUGH MEN STILL REPRESENT THE VAST MAJORITY OF PATIENTS NEW AIDS CASES ROSE 35 OVERALL LAST YEAR THE CENTERS FOR DISEASE CONTROL AND PREVENTION SAID FOR THE FIRST TIME MORE OF THE WOMEN WERE INFECTED THROUGH SEX THAN DRUG USE NICARAGUAN GOVERNMENT TROOPS CLASHED WITH REBELS IN THE FIERCEST FIGHTING IN THE COUNTRY SINCE ITS CIVIL WAR IN THE 1980S THE FIGHTING AT THE NORTHERN CITY OF ESTELI LEFT 45 PEOPLE DEAD AND 98 WOUNDED FORMER CONTRAS AND LEFTIST REBELS HAVE TEAMED UP TO PROTEST WHAT THEY SAY ARE BROKEN PROMISES OF LAND AND SUPPORT BY THE GOVERNMENT CLINTON MET WITH HAITI'S EXILED PRESIDENT ARISTIDE TO DISCUSS PLANS TO RETURN HIM TO POWER SAYING THERE'S A MAJOR POTENTIAL FOR A VICTORY FOR DEMOCRACY CLINTON PRAISED ARISTIDE FOR SIGNING AN ACCORD THAT CALLS FOR HIS RETURN ON OCT 30 THE US ALSO HAS AGREED TO SEND MILITARY TRAINERS TO HELP UPGRADE HAITI'S POLICE FORCE 9307230017 930723 RALSTON PURINA PROFIT FELL IN ITS 3RD QUARTER ON NEARLY FLAT SALES ST LOUIS RALSTON PURINA CO SURPRISING WALL STREET ON BOTH THE NUMBERS AND THE TIMING OF ITS RELEASE REPORTED LOWER FISCAL THIRDQUARTER EARNINGS ON SLIGHTLY IMPROVED SALES THE COMPANY CITED PROFIT DECLINES IN PET FOODS CEREALS AND BATTERIES IN REPORTING EARNINGS OF 662 MILLION OR 59 CENTS A SHARE COMPARED WITH 684 MILLION OR 61 CENTS A SHARE A YEAR EARLIER EXCLUDING SPECIAL ITEMS THAT MARRED LAST YEAR'S QUARTER EARNINGS DECLINED 19 SALES FOR THE PERIOD ROSE LESS THAN 1 TO 187 BILLION FROM 186 BILLION RALSTON SHARES FELL 2 ON THE NEWS TO 42625 AND TRADING DIDN'T RESUME ON THE NEW YORK STOCK EXCHANGE AFTER A PREANNOUNCEMENT HALT ANALYSTS HAD BEEN EXPECTING PERSHARE EARNINGS AROUND 75 CENTS SEVERAL ALSO SAID THEY HAD LOOKED FOR EARNINGS TO BE RELEASED NEXT MONDAY THE COMPANY DENIED THAT A LEAK OF THE NUMBERS PROMPTED AN EARLY RELEASE NOMI GHEZ FOOD ANALYST AT GOLDMAN SACHS & CO SAID MAJOR AREAS OF BELOWEXPECTATION PERFORMANCE WERE PET FOODS CEREALS AND BATTERIES SHE CALCULATED PET FOOD OPERATING EARNINGS WERE 10 BELOW FORECASTS ONE PROBLEM IN PET FOODS MS GHEZ SAID IS THAT CONSUMERS ARE BARGAIN HUNTING AND BUYING BIGGER BAGS OF DRY FOOD SHE ALSO SAID PEOPLE ARE TRADING DOWN IN BATTERIES RALSTON MAKES EVEREADY AND PERHAPS ARE BUYING LARGER PACKS EARNINGS AT RALSTON'S CONTINENTAL BAKING UNIT DROPPED SUBSTANTIALLY IN THE LATEST PERIOD THE COMPANY SAID EXCLUDING A 57 MILLION RESTRUCTURING CHARGE LAST YEAR RALSTON WHICH PLANS TO MAKE CONTINENTAL A SEPARATE PUBLIC COMPANY CITED WHAT IT CALLED BREAD CONSUMERS' CONTINUING SHIFT TO LOWERMARGIN PRODUCTS AS WELL AS HIGHER PROMOTIONAL DISCOUNTS 9307230015 930723 WORLD MARKETS TOKYO EQUITIES AGAIN END MIXED AS INVESTORS ABSORB POLITICAL EVENTS PRICES RISE IN LONDON A WALL STREET JOURNAL NEWS ROUNDUP AS JAPAN'S POLITICAL RESHAPING CONTINUED TO UNFOLD THURSDAY TOKYO STOCK PRICES ENDED MIXED FOR THE SECOND SESSION IN A ROW IN EXTREMELY THIN DEALINGS LONDON SHARES MANAGED A LATE REBOUND FROM EARLY LOSSES TO CLOSE A BIT HIGHER BUOYED BY POSITIVE NEWS IN THE DRUG SECTOR WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10709 UP 057 REFLECTING INCREASES IN ASIA/PACIFIC MARKETS A DROP IN MARKETS IN THE AMERICAS AND FLAT EUROPEAN MARKETS CONSUMER ELECTRONICS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11504 UP 473 OR 43 WITH MATSUSHITA KOTOBUKI ELECTRONICS INDUSTRIES OF JAPAN POSTING A 39 GAIN IN ITS LOCAL CURRENCY HOUSEHOLD PRODUCTS/NONDURABLE STOCKS TRAILED AT 9975 DOWN 181 OR 18 WITH COLGATEPALMOLIVE OF THE US SLIDING 37 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4291 POINTS WEDNESDAY GAINED 3490 TO 2011581 AFTER BEING STUCK IN A RANGE OF ONLY ABOUT 100 POINTS ON FRIDAY THE NIKKEI FELL 35643 POINTS TO CLOSE THE MORNING SESSION AT 1975938 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES DOWN FROM 2543 MILLION SHARES A DAY EARLIER LOSERS OUTNUMBERED GAINERS 535418 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EDGED UP 169 POINTS WEDNESDAY SLIPPED 203 TO 163429 THE MARKET DIDN'T REACT TO JAPANESE PRIME MINISTER KIICHI MIYAZAWA'S ANNOUNCEMENT THAT HE WILL STEP DOWN AS PRESIDENT OF THE LIBERAL DEMOCRATIC PARTY THUS SURRENDERING THE NATION'S TOP POLITICAL POST INVESTORS HAD ANTICIPATED MR MIYAZAWA'S RESIGNATION IN LIGHT OF THE SCANDALPLAGUED LDP'S LOSS LAST WEEKEND OF A PARLIAMENTARY MAJORITY FOR THE FIRST TIME SINCE THE PARTY'S FORMATION ALMOST FOUR DECADES AGO THE MARKET'S WAITANDSEE ATTITUDE ALSO STEMMED FROM THE TAXEVASION TRIAL OF FORMER LDP KINGPIN SHIN KANEMARU WHICH HAS PROMPTED FEARS HE COULD FURTHER TARNISH THE PARTY AS IT STRUGGLES TO CONSOLIDATE POWER IN A NEW GOVERNMENT MEANWHILE NEWS REPORTS SAID THREE AIDES OF THE POWERFUL LDP POLICY CHIEF AND A POTENTIAL CANDIDATE FOR PRIME MINISTER HIROSHI MITSUZUKA WERE ARRESTED ON SUSPICION OF VIOLATING ELECTION LAWS MOST TOKYO TRADING CAME FROM JAPANESE INVESTMENT TRUST FUNDS AND EUROPEAN INVESTORS AUGMENTING THEIR POSITIONS TECHNOLOGY SHARES ATTRACTED BUYING PARTICULARLY BY OVERSEAS INVESTORS FOLLOWING STRONG SHOWINGS OF THEIR WALL STREET COUNTERPARTS A DAY EARLIER IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 60 POINTS TO 28201 THE FT 30STOCK INDEX ADDED 62 POINTS TO 22263 VOLUME WAS 5818 MILLION SHARES COMPARED WITH 554 MILLION SHARES A DAY EARLIER THE LONDON MARKET WAS IN NEGATIVE TERRITORY LESS THAN AN HOUR BEFORE THE CLOSE WHEN A US FEDERAL JUDGE RULED THAT SCIENTISTS OF THE BURROUGHS WELLCOME UNIT OF THE PHARMACEUTICAL MAKER WELLCOME WERE THE SOLE INVENTORS OF AZT A DRUG FOR TREATING AIDS THE DECISION CAME IN WELLCOME'S PATENTINFRINGEMENT LAWSUIT AGAINST TWO GENERIC DRUG MAKERS WHICH HAD SOUGHT CLEARANCE TO MANUFACTURE A LESS EXPENSIVE GENERIC VERSION OF AZT SAYING THE PATENT WASN'T VALID BECAUSE THE DRUG WAS DEVELOPED WITH PUBLIC FUNDS AND RESEARCH WELLCOME SHARES RALLIED 29 PENCE OR 47 TO 641 PENCE 971 UNTIL THE WELLCOME NEWS HEATED UP THE MARKET IT HAD BEEN ESPECIALLY QUIET WITH INVESTORS AWAITING AN EVENING PARLIAMENTARY VOTE ON THE PROPOSED EUROPEAN COMMUNITY UNIFICATION TREATY IN FRANKFURT PRICES ENDED LITTLE CHANGED IN A CONSOLIDATION FOLLOWING THE PREVIOUS DAY'S DROP THE DAX 30STOCK INDEX EASED 029 POINT TO 182352 WITH 14 OF THE ISSUES UP AND 12 DOWN INVESTORS TOOK PROFITS ON SOME CHEMICAL SHARES AND BOUGHT STEEL AND UTILITY ISSUES FOLLOWING AN ANNOUNCEMENT LATE WEDNESDAY OF THE COMING RELEASE OF SIX BILLION MARKS 354 BILLION THAT HAD BEEN SET ASIDE FOR THE CONSTRUCTION AND MODERNIZATION OF EASTERN GERMAN ENERGY PLANTS PARIS STOCKS ROSE AS FEARS ABOUT A DEVALUATION OF THE FRENCH FRANC HEIGHTENED WITH US BUYING OF BLUE CHIPS LIFTING THE MARKET OUT OF THE LOSS COLUMN INITIALLY THE BESIEGED FRANC AND WEAKNESS IN THE FRENCH BOND MARKET PROMPTED INVESTORS TO TAKE PROFITS BUT WHEN THE FRENCH CENTRAL BANK MOVED TO DISCOURAGE SPECULATIVE ATTACKS AGAINST THE CURRENCY DEVALUATION ANXIETIES GREW SENDING INVESTORS TO THE SAFER COVER OF THE STOCK MARKET AS STOCKS GENERALLY BENEFIT WHEN DEVALUATION WORRIES INTENSIFY DEVALUATION PROSPECTS ATTRACTED FOREIGN MAINLY US BUYERS AS A DEVALUATION COULD MAKE FRENCH COMPANIES MORE COMPETITIVE THAN THEIR NEIGHBORS AND ALLOW A FRENCH CUT IN LENDING RATES IN AMSTERDAM CHEMICAL AND CONSUMER PRODUCTS STOCKS LED A BROAD ADVANCE AS INVESTORS COVERED POSITIONS AND BOUGHT BARGAINS AFTER TWO DAYS OF DECLINES THE RISE WAS FUELED BY A SLIGHTLY FIRMER DOLLAR HOPES FOR MORE EUROPEAN INTERESTRATE CUTS AND SOME STOCKBUY RECOMMENDATIONS IN MILAN SHARES SLUMPED AFTER OPENING WEAKLY FOLLOWING WEDNESDAY'S SELLOFF ON CONTINUED PESSIMISM ABOUT RATE REDUCTIONS BECAUSE OF THE ITALIAN LIRA'S WEAKNESS BUT PRICES WERE PUSHED UP FROM EVEN DEEPER LOSSES BECAUSE INSTITUTIONAL INVESTORS STEPPED IN TO BUY AND SPECULATORS JUMPED ON THE BANDWAGON IN MADRID STOCKS EDGED HIGHER IN THE LAST HOUR OF TRADING DESPITE EDGINESS BECAUSE OF THE SPANISH PESETA'S TROUBLES IN FOREIGNEXCHANGE MARKETS IN ZURICH PRICES RALLIED AS FOREIGN INVESTORS ESPECIALLY THOSE FROM THE US AND BRITAIN WENT SHOPPING FOR BLUE CHIPS AND BARGAINS FOLLOWING THE MARKET'S SHARP SETBACKS THIS WEEK BRUSSELS SHARES DROPPED ON CONTINUED PROFITTAKING SYDNEY SHARE PRICES LOST STEAM AFTER THE PREVIOUS DAY'S STRONG GAINS CLOSING LOWER AS INVESTORS AWAITED FRESH NEWS TO GIVE THE MARKET DIRECTION SINGAPORE EQUITIES RALLIED FOR THE SECOND DAY IN A ROW LED BY GAINS IN BLUE CHIPS HONG KONG STOCKS TUMBLED TO THEIR LOWEST CLOSE IN MORE THAN 10 WEEKS AS AGREEMENTS SOUGHT BETWEEN BRITAIN AND CHINA ON THE COLONY'S POLITICAL FUTURE REMAINED DISTANT TAIPEI PRICES ROSE ON NEWS THAT FIVE MAJOR BANKS CUT DEPOSIT RATES BECAUSE OF AN OVERSUPPLY OF MONEY IN THE BANKING SYSTEM MANILA SHARES MARKED A RECORD FOR THE SECOND CONSECUTIVE DAY IN A CLIMB LED BY THE TELEPHONE SECTOR AND WELLINGTON STOCKS ROSE IN HEAVY TRADING SETTING A NEW THREEYEAR HIGH FOR THE SECOND DAY IN A ROW BUT IN SEOUL PRICES RETREATED ON REPORTS THAT THE SOUTH KOREAN GOVERNMENT WAS KEEPING TRACK OF ALL FINANCIAL TRANSACTIONS BY HIGHRANKING OFFICIALS AND THEIR FAMILIES THE GOVERNMENT SAID THE REPORTS WERE GROUNDLESS BUT THEY PROVIDED AN EXCUSE FOR INVESTORS TO SELL 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 9307230014 930723 WHAT'S NEWS BUSINESS AND FINANCE VOLKSWAGEN'S LOPEZ WAS LINKED DIRECTLY BY GERMAN PROSECUTORS TO A CACHE OF SENSITIVE GENERAL MOTORS DOCUMENTS FOUND IN AN APARTMENT RENTED BY TWO OF HIS ASSOCIATES THE PROSECUTORS' LINK BOLSTERS GM'S CONTENTION THAT LOPEZ ITS FORMER PURCHASING CHIEF STOLE SECRETS WHEN HE JUMPED TO VW THE PROSECUTORS ALSO SAID THEY WILL WIDEN THEIR PROBE OF SUSPECTED INDUSTRIAL ESPIONAGE TO VW FED CHAIRMAN GREENSPAN SAID THAT ALTHOUGH HE DOESN'T SEE ANY MAJOR THREAT OF INFLATION NOW THE CENTRAL BANK WILL UNDOUBTEDLY BE FORCED TO RAISE INTEREST RATES IN THE FUTURE THE COMMENTS WERE AN ATTEMPT TO CLARIFY HIS TESTIMONY TO A HOUSE PANEL EARLIER IN THE WEEK THAT ROILED MARKETS STOCK PRICES TUMBLED ON PROFITTAKING AND WEAKNESS IN THE BOND MARKET AFTER GREENSPAN'S REMARKS THE DOW INDUSTRIALS SANK 3018 POINTS TO 352522 THE DOLLAR PLUNGED AGAINST THE YEN THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL 3/8 POINT THE ISSUE'S YIELD INCREASED TO 665 DEMOCRATS NEGOTIATING A BUDGET DEFICITREDUCTION PLAN GAVE FURTHER INDICATIONS THAT THEY ARE MOVING TOWARD A FUELSTAX INCREASE AND AGREED TO SEVERAL OTHER TAX INCREASES INCLUDING THOSE HITTING THE WEALTHIEST OUSTED SUNBEAMOSTER CHAIRMAN PAUL KAZARIAN WILL RECEIVE ABOUT 160 MILLION FROM THE COMPANY IN A SETTLEMENT OF RANCOROUS DISPUTES INVOLVING HIM AND CONTROLLING INVESTORS AT&T'S PROFIT ROSE 86 IN THE SECOND QUARTER ON A 3 INCREASE IN REVENUE BUT THE SLUGGISH ECONOMY AND COMPETITION WITH MCI AND SPRINT KEPT LONGDISTANCE SERVICE REVENUE FLAT DELTA AIR LINES POSTED BETTERTHANEXPECTED RESULTS FOR THE LATEST QUARTER OFFERING FURTHER EVIDENCE OF A FRAIL BUT TANGIBLE AIRLINE INDUSTRY RECOVERY JOSEPH PERELLA SAID HE WILL QUIT AS CHAIRMAN OF WASSERSTEIN PERELLA THE INVESTMENT BANK HE COFOUNDED FIVE YEARS AGO TO SEEK NEW CHALLENGES OIL PRICES FELL AMID DOUBTS WHETHER NEXT WEEK'S EMERGENCY MEETING OF OPEC MEMBERS WILL EVER BE HELD THE MEETING IS SHAPING UP AS THE STAGE FOR A BIG FIGHT BETWEEN SAUDI ARABIA AND IRAN OVER OIL OUTPUT TEXACO AMOCO SUN AND OCCIDENTAL PETROLEUM POSTED STRONGER SECONDQUARTER PROFIT REFLECTING IMPROVED PROFIT MARGINS IN NATURALGAS MARKETS AND OIL REFINING OPERATIONS BUT AMERADA HESS REPORTED A HEFTY LOSS SALOMON BROTHERS' MOST POWERFUL BONDARBITRAGE EXECUTIVE AND ONE OF WALL STREET'S HIGHEST PAID TRADERS LAWRENCE HILIBRAND PLANS TO QUIT THE BIG SECURITIES FIRM AT YEAR END SEPARATELY SALOMON SAID ITS SECONDQUARTER PROFIT MORE THAN DOUBLED BURROUGHS WELLCOME WON EXCLUSIVE PATENT RIGHTS TO THE AIDS DRUG AZT DESPITE GOVERNMENT SCIENTISTS' ROLE IN AZT'S DEVELOPMENT TOKYO STOCK PRICES ENDED MIXED THURSDAY AS JAPAN'S POLITICAL RESHAPING CONTINUED TO UNFOLD THE NIKKEI INDEX GAINED 3490 TO 2011581 LONDON SHARES MANAGED A LATE REBOUND FROM EARLY LOSSES TO CLOSE A BIT HIGHER STOCKS VOLUME 248084690 SHARES DOW JONES INDUSTRIALS 352522 OFF 3018 TRANSPORTATION 157599 UP 278 UTILITIES 24684 UNCHANGED BONDS LEHMAN BROTHERS TREASURY INDEX 531093 OFF 1705 COMMODITIES OIL 1763 A BARREL OFF 30 CENTS DOW JONES FUTURES INDEX 12883 UP 095 SPOT INDEX 12257 OFF 007 DOLLAR 10545 YEN OFF 265 17032 MARKS UP 00062 9307230013 930723 THURSDAY'S MARKETS PROFITTAKING HURTS STOCKS YEN IS STRONGER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES TUMBLED ON PROFITTAKING AND WEAKNESS IN THE BOND MARKET THE DOLLAR TUMBLED AGAINST THE YEN BUT POSTED A MODEST RISE AGAINST THE MARK THE DOW JONES INDUSTRIAL AVERAGE SANK 3018 POINTS TO 352522 STANDARD & POOR'S 500STOCK INDEX DROPPED 267 TO 44451 AND THE NASDAQ COMPOSITE INDEX FELL 456 TO 69552 THE INDUSTRIAL AVERAGE'S SHARP RETREAT FROM ITS ALLTIME HIGH WEDNESDAY DIDN'T SURPRISE MANY ANALYSTS PEOPLE WERE SKEPTICAL OF THAT RECORD AS A TRUE MEASURE OF WHAT THE MARKET HAS BEEN DOING SAID NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA MR COLLINS NOTED THAT THE SELLING WAS BROADBASED WITH EVEN MINNESOTA MINING & MANUFACTURING WITHERING YESTERDAY IT SANK 2 1/2 TO 108 3/4 THE BOND MARKET GOT AN EARLY BOOST FROM A LARGERTHANEXPECTED JUMP IN WEEKLY JOBLESS CLAIMS BUT THEN WEAKENED AFTER FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN APPEARED BEFORE THE SENATE BANKING COMMITTEE TO REITERATE THAT THE FED STANDS READY TO BOOST SHORTTERM INTEREST RATES TO FIGHT INFLATION CURRENCY TRADERS SAID THE YEN'S SHARP GAINS AGAINST THE DOLLAR STEMMED FROM SENATE COMMITTEE TESTIMONY BY DEPUTY TREASURY SECRETARY ROGER ALTMAN WHO SAID A STRONG YEN WOULD REDUCE JAPAN'S SURPLUS RATHER QUICKLY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 057 TO 10709 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2481 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1208 ISSUES FELL AND 767 ROSE BOND PRICES FELL THE TREASURY'S BENCH MARK 30YEAR ISSUE LOST 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 665 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17032 MARKS AND 10545 YEN COMPARED WITH 16970 MARKS AND 10810 YEN WEDNESDAY 9307230012 930723 TECHNOLOGY PROFIT OF COMPUTER ASSOCIATES GREW 60 IN QUARTER BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COMPUTER ASSOCIATES INTERNATIONAL INC SURPASSED EXPECTATIONS FOR ITS FISCAL FIRSTQUARTER EARNINGS REPORTING PROFIT OF 18 CENTS A SHARE UP FROM 11 CENTS A SHARE IN THE YEARAGO QUARTER ANALYSTS HAD FORECAST EARNINGS OF 14 CENTS TO 15 CENTS A SHARE FOR THE QUARTER ENDED JUNE 30 NET INCOME ROSE 60 TO 307 MILLION FROM THE YEARAGO PERIOD'S 193 MILLION REVENUE INCREASED 15 TO 4234 MILLION COMPARED WITH 3675 MILLION A YEAR AGO CHARLES B WANG CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ISLANDIA NYBASED SOFTWARE MANUFACTURER IN AN INTERVIEW ATTRIBUTED MOST OF THE GROWTH TO THE COMPANY'S DIVERSIFICATION IN RECENT YEARS INTO THE MIDRANGE AND MICROPROCESSOR FIELD THE MAINFRAMEBASED BUSINESS STILL GENERATES THE BULK OF COMPUTER ASSOCIATE'S SALES BUT WAS 78 OF SALES IN THE FIRST QUARTER DOWN FROM 81 OF SALES IN THE YEARAGO PERIOD ON A COMPARABLE QUARTER BASIS THE MIDRANGE BUSINESS GREW 135 IN REVENUE COMPARED WITH 11 REVENUE GROWTH IN THE MAINFRAME AREA MR WANG SAID MAINFRAMEBASED REVENUE WAS 331 MILLION UP FROM 298 MILLION IN THE YEARAGO QUARTER MR WANG SAID THE COMPANY'S CAUNICENTER PRODUCT WAS AS AN EXAMPLE OF SUCCESSFUL DIVERSIFICATION ORIGINALLY A MAINFRAME SYSTEM ENHANCER THAT HELPS AN OPERATING SYSTEM BY GIVING IT FUNCTIONS LIKE SECURITY AND AUTOMATED STORAGE IT WAS ALTERED BY COMPUTER ASSOCIATES FOR USE ON UNIX A HIGHEND OPERATING SYSTEM THAT IS OPEN OR ABLE TO USE MANY TECHNOLOGIES CAUNICENTER BECAME GENERALLY AVAILABLE IN MAY AND HEWLETTPACKARD CO IS BUNDLING IT WITH ITS HP 9000 SERIES MIDRANGE AND HIGHEND BUSINESS SERVER MR WANG SAID THE MAINFRAME BUSINESS IS STILL STRONG AND GOOD BUT HE SAID THE MIDRANGE AND MICROPROCESSOR BUSINESS WILL GROW VERY DRAMATICALLY COMPUTER ASSOCIATES IS PROFITING FROM THE LOWER COSTS ASSOCIATED WITH THE MIDRANGE BUSINESSES MR WANG SAID IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPUTER ASSOCIATES STOCK CLOSED AT 30375 UP 875 CENTS 9307230010 930723 GUCCI HALFOWNER SEEKS TO SELL STAKE INVESTCORP CHALLENGES NEW YORK A HALFOWNER OF THE GUCCIO GUCCI SPA LUXURY GOODS BUSINESS CHALLENGED MAURIZIO GUCCI'S MANAGEMENT OF THE COMPANY SAYING MR GUCCI WAS SEEKING TO SELL HIS INTERESTS WITHOUT HIS PARTNER'S PERMISSION AN INVESTOR GROUP LED BY BAHRAINBASED INVESTCORP SA SAID IT WAS TAKING THE DISPUTE TO ARBITRATION AND IN THE MEANTIME ASKED A NEW YORK STATE SUPREME COURT TO BLOCK MR GUCCI FROM IMPROPERLY SELLING HIS STAKE IN THE COMPANY A SPOKESMAN FOR INVESTCORP SAID THAT FOR SOME TIME MR GUCCI HAS FAILED TO ADOPT AN ADEQUATE MANAGEMENT PLAN OR TAKE OTHER STEPS TO REVERSE THE COMPANY'S EARNINGS DECLINE WE HAVE ASKED HIM TO RELINQUISH MANAGEMENT RESPONSIBILITIES TO SOMEONE WITH MORE EXPERIENCE BUT HE REFUSED THE SPOKESMAN SAID INSTEAD THE LAWSUIT ALLEGES MR GUCCI PLEDGED SOME OF HIS SHARES TO SECURE BANK BORROWINGS WITHOUT NOTICE TO INVESTCORP IN MAY THE PETITION ASSERTS MR GUCCI ARRANGED TO AUCTION OFF 90 OF HIS HOLDING TO PAY A JUDGMENT AGAINST HIM THE AUCTION WAS ABRUPTLY CALLED OFF THE SUIT SAYS AND MR GUCCI CLAIMED THAT AFTER BEING VISITED IN A DREAM BY THE GHOST OF HIS FATHER HE FOUND THE MONEY TO PAY THE MULTIMILLION DOLLAR DEBT HIDDEN UNDER THE FLOORBOARDS OF HIS HOUSE IN ST MORITZ SWITZERLAND INVESTCORP SAID IT FILED A DEMAND FOR ARBITRATION WITH THE AMERICAN ARBITRATION ASSOCIATION TO HAVE MR GUCCI ORDERED TO SELL HIS INTERESTS TO THE INVESTCORP GROUP IT ASKED FOR A COURT INJUNCTION BLOCKING MR GUCCI FROM DISPOSING OF HIS SHARES PENDING THE ARBITRATION THE PETITION SAYS INVESTCORP HAS A RIGHT OF FIRST REFUSAL TO PURCHASE HIS INTEREST SHOULD MR GUCCI DECIDE TO SELL IT ALSO ASSERTED THAT MR GUCCI APPEARS TO HAVE BEEN LESS THAN CANDID AND MAY HAVE TRANSFERRED SOME OF HIS HOLDINGS AN ATTORNEY FOR INVESTCORP SAID THE NEW YORK COURT GRANTED A 10DAY TEMPORARY RESTRAINING ORDER AGAINST MR GUCCI AND SET A HEARING FOR AUG2 9307230009 930723 REGULATORS TO RELAX RULES ON BANKS IN WET MIDWEST WASHINGTON FEDERAL BANK REGULATORS SAID THEY'RE RELAXING RULES ON BANKS IN FLOODED AREAS OF THE MIDWEST TO GIVE FINANCIAL INSTITUTIONS FLEXIBILITY TO WORK WITH TROUBLED BORROWERS THE FEDERAL DEPOSIT INSURANCE CORP AND THE COMPTROLLER OF THE CURRENCY URGED BANKS TO EXTEND REPAYMENT SCHEDULES AND RESTRUCTURE LOANS TO HELP BORROWERS COPE WITH THE DISASTER PRUDENT LOAN ADJUSTMENTS WON'T BE SUBJECT TO CRITICISM FROM EXAMINERS THE AGENCIES SAID IN ADDITION THE AGENCIES SAID THEY'RE EASING CERTAIN CAPITAL APPRAISAL AND REPORTING REQUIREMENTS DURING THE FLOOD RECOVERY PERIOD THE OFFICE OF THRIFT SUPERVISION WHICH REGULATES SAVINGS AND LOAN ASSOCIATIONS ISSUED SIMILAR GUIDANCE LAST WEEK THE FEDERAL RESERVE BOARD PLANS TO ISSUE ITS VERSION TODAY 9307230007 930723 BUSINESS BRIEF BICC PLC FIRM WITHDRAWS OFFERING OF ANDOVER CONTROLS UNIT UK CABLES AND CONSTRUCTION GROUP BICC PLC ANNOUNCED THAT IT HAS WITHDRAWN THE PUBLIC OFFERING OF ITS US SUBSIDIARY ANDOVER CONTROLS DUE TO STOCK MARKET CONDITIONS IN THE US BICC SPOKESMAN TIM SHARP SAID THE COMPANY HAD PLANNED TO SELL 50 OF ANDOVER CONTROLS A MAKER OF BUILDINGAUTOMATION SYSTEMS IN ORDER TO RAISE 27 MILLION HE SAID INSUFFICIENT MARKET INTEREST HAD LED TO THE DECISION TO WITHDRAW THE OFFER BICC SHARES DROPPED 8 PENCE TO 390 PENCE 591 ON THE LONDON STOCK EXCHANGE YESTERDAY IN A STATEMENT BICC SAID ANDOVER CONTROLS WILL REMAIN A PART OF THE BICC GROUP HOWEVER MR SHARP SAID THAT BICC IS COMMITTED TO ITS STRATEGY OF CONCENTRATING ON CORE AREAS SUCH AS ITS CABLE AND CONSTRUCTION BUSINESS AND THAT TECHNOLOGY COMPANIES SUCH AS ANDOVER CONTROLS DON'T FIT IN WITH THIS PLAN IT ISN'T IN OUR LONGTERM THINKING HE SAID 9307230006 930723 FORMER CHAIRMAN OF SUNBEAMOSTER TO RECEIVE 160 MILLION SETTLEMENT BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL OUSTED SUNBEAMOSTER CO CHAIRMAN PAUL B KAZARIAN WILL RECEIVE ABOUT 160 MILLION FROM THE COMPANY IN A SETTLEMENT OF RANCOROUS DISPUTES INVOLVING MR KAZARIAN AND CONTROLLING INVESTORS THE SETTLEMENT WOULD END A SAGA THAT STARTED IN JANUARY WHEN SUNBEAM DIRECTORS REMOVED MR KAZARIAN AFTER TOP EXECUTIVES COMPLAINED THAT HE WAS BEHAVING IN A BIZARRE MANNER AND HARMING THE COMPANY MR KAZARIAN HAD LED A TURNAROUND OF THE PROVIDENCE RI HOUSEWARES COMPANY THAT BROUGHT IT OUT OF BANKRUPTCYLAW PROCEEDINGS UNDER THE SETTLEMENT SUNBEAMOSTER REPURCHASED 124 MILLION SHARES AT 14 EACH FOR A TOTAL OF 1736 MILLION FROM SUNBEAMOSTER EQUITIES INC A PARTNERSHIP THAT INCLUDES MR KAZARIAN SUNBEAM ALSO AGREED TO PAY MR KAZARIAN 39 MILLION IN SEVERANCE THE AGREEMENT WAS ANNOUNCED AFTER THE CLOSE OF TRADING SUNBEAM ENDED AT 1575 DOWN 1 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SUNBEAMOSTER EQUITIES A LIMITED PARTNERSHIP CONTROLS THE COMPANY AND PREVIOUSLY HAD HELD A 77 STAKE BEFORE THE SETTLEMENT TWO MONEY MANAGERS MUTUAL SERIES FUND INC AND STEINHARDT VENTURES INC EACH HELD 40 STAKES IN THE PARTNERSHIP THE OTHER 20 WAS OWNED BY JAPONICA PARTNERS LP WHICH IS CONTROLLED BY MR KAZARIAN FOLLOWING THE STOCK REPURCHASE SUNBEAMOSTER EQUITIES HAS ABOUT 51 MILLION SUNBEAM SHARES OR A 70 STAKE IN THE COMPANY EXCLUDING WARRANTS TO PURCHASE 46 MILLION ADDITIONAL SHARES INDIVIDUALS FAMILIAR WITH THE SETTLEMENT SAID MR KAZARIAN WILL RECEIVE ABOUT 90 OF THE STOCKREPURCHASE AMOUNT OR 155 MILLION TWO FORMER SUNBEAM OFFICERS WHO FILED CLAIMS OF PARTNERSHIP IN JAPONICA WILL GET THE REST THE TWO MEN RESIGNED AS SUNBEAM OFFICERS AS PART OF THE SETTLEMENT THEY ARE MICHAEL LEDERMAN FORMERLY SUNBEAMOSTER'S GENERAL COUNSEL AND A DIRECTOR AND ROBERT SETRAKIAN FORMER CHIEF FINANCIAL OFFICER THE TWO WHO PLAYED KEY ROLES IN MR KAZARIAN'S OUSTER AS CHAIRMAN HAD FILED SUITS AGAINST HIM CLAIMING A RIGHT TO AS MUCH AS ONETHIRD OF JAPONICA EACH MR KAZARIAN CLAIMED MR LEDERMAN HAD A 1 STAKE IN JAPONICA AND MR SETRAKIAN HELD NONE LAST MONTH MESSRS LEDERMAN AND SETRAKIAN TOOK LEAVES OF ABSENCE FROM THEIR SUNBEAM POSTS WHEN IT WAS DISCOVERED THAT FILES MR KAZARIAN SOUGHT HAD BEEN DESTROYED SINCE THEN SUNBEAMOSTER EQUITIES HAS SAID MR SETRAKIAN ORDERED A SECRETARY TO DESTROY THE FILES MUTUAL SERIES AND STEINHARDT HAD ALSO SUED MR KAZARIAN TO OUST HIM FROM A POTENTIALLY CONTROLLING POSITION IN THE PARTNERSHIP AND HE HAD COUNTERCLAIMED THE SETTLEMENT COVERS ALL LITIGATION BETWEEN MR KAZARIAN AND HIS JAPONICA PARTNERS IT ALSO COVERS ALL LITIGATION INVOLVING MUTUAL SERIES AND STEINHARDT SUNBEAMOSTER ITSELF WASN'T INVOLVED IN ANY OF THE LITIGATION CHARLES THAYER CHAIRMAN OF SUNBEAMOSTER SAID IN A STATEMENT THAT THE COMPANY BOUGHT THE STOCK BECAUSE THE OPPORTUNITY TO PURCHASE COMMON STOCK AT A FAVORABLE PRICE WAS IN THE BEST INTEREST OF SHAREHOLDERS HE SAID THAT AFTER THE REPURCHASE SUNBEAM STILL HAS AMPLE LIQUIDITY INCLUDING 80 MILLION IN CASH RESERVES HE COULDN'T BE REACHED FOR FURTHER COMMENT MR KAZARIAN ALSO COULDN'T BE REACHED FOR COMMENT THE REPURCHASE SHOULD REDUCE THE GOSSIP SPECULATION AND ACCUSATION THAT HAS SWIRLED AROUND SUNBEAM SINCE JANUARY FUELED BY DUELING PUBLIC RELATIONS CAMPAIGNS MR KAZARIAN'S DETRACTORS DEFENDING HIS FIRING PORTRAYED HIM AS SOMEONE WHO HAZED SUBORDINATES MADE LEWD REMARKS TO WOMEN AND RENEGED ON AGREEMENTS MR KAZARIAN HAS DENIED THE ALLEGATIONS HE ASSERTED HIS REMOVAL WAS ORCHESTRATED BY HIS PARTNERS WHO SOUGHT TO REMOVE HIM TO MAXIMIZE THEIR OWN PROFITS MR KAZARIAN ALSO ASSERTED THAT MICHAEL PRICE MANAGER OF MUTUAL SERIES FUND USED HIS INFLUENCE AT SUNBEAM TO TRY TO BOLSTER THE VALUE OF A FAILING INVESTMENT IN RH MACY & CO AND HAD USED NONPUBLIC INFORMATION IN TRADING MR PRICE HAS SAID HE NEVER PRESSURED MR KAZARIAN TO TAKE ANY SUCH ACTION REGARDING MACY OR MISUSED INFORMATION YESTERDAY MR PRICE SAID IN A STATEMENT THAT HE WAS PLEASED WITH THE SETTLEMENT BECAUSE IT SETTLES THE LITIGATION WITHOUT COST TO THE FUNDS 9307230005 930723 CREDIT RATINGS NORTHERN TELECOM LTD MISSISSAUGA ONTARIO STANDARD & POOR'S CORP PLACED THIS TELECOMMUNICATIONS EQUIPMENT COMPANY'S SINGLEAPLUS SENIORDEBT RATING ON CREDITWATCH CITING THE COMPANY'S 1 BILLION SECONDQUARTER LOSS THE MOVE AFFECTS 15 BILLION OF DEBT NORTHERN TELECOM WHICH HAS DISAPPOINTED INVESTORS WITH A FORECAST OF A LOSS THIS YEAR PLANS A MAJOR RESTRUCTURING PROGRAM THAT INCLUDES FACILITY CLOSINGS STAFF CUTS SOFTWARE IMPROVEMENTS AND THE SALE OF ITS STC SUBMARINESYSTEMS DIVISION S&P SAID THE COMPANY'S SINGLEA1 COMMERCIALPAPER RATING WAS AFFIRMED AND WASN'T PLACED UNDER REVIEW 9307230004 930723 MONEY FUND ASSETS DECLINE 369 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL 369 BILLION TO 58039 BILLION FROM 58408 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 642 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 6441 MILLION TO 392 BILLION THE TRADE GROUP SAID ASSETS OF 402 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 6868 MILLION TO 30891 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS FELL BY 427 MILLION TO 8309 BILLION ASSETS OF THE 267 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 433 BILLION TO 18839 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 213 TAXABLE MONEY MARKET FUNDS FELL BY 395 BILLION TO 16791 BILLION ASSETS OF 54 TAXEXEMPT FUNDS FELL BY 3875 MILLION TO 2048 BILLION 9307230003 930723 LEISURE & ARTS ARTWORLD ARRESTS IN ITALY BY FREDERIKA RANDALL ROME FOR A LONG TIME PEOPLE HAD BEEN SAYING THAT SOMETHING WAS ROTTEN IN THE STATE OF THE ARTS IN ITALY THERE WERE RUMORS OF WILD COST OVERRUNS FOR GHOST RESTORATIONS OF ANTIQUE PALACES RUMORS OF FAT ENVELOPES OF CASH CHANGING HANDS IN EXCHANGE FOR FESTIVAL AND CONCERT SLOTS RUMORS EVEN THAT SOMEBODY THE MAFIA HAD DELIBERATELY SET FIRE TO A GREAT SOUTHERN THEATER TWO YEARS AGO LEAVING A CHARRED SKELETON STREWN WITH BLACKENED SHREDS OF CURTAINS AND ROPES IN PLACE OF THE PROUD STAGE THAT HAD HOSTED MARGOT FONTAINE AND RUDOLF NUREYEV LIVING WITH THE VOCI THE VOICES THE RUMORS PEOPLE BECAME UNEASY THEN CYNICAL SO WHEN ONE DAY EARLIER THIS MONTH THE FRONT PAGES OF ITALY'S NEWSPAPERS EXPLODED WITH NEWS OF THREE SEPARATE JUDICIAL INVESTIGATIONS IN THE ARTS THE EFFECT AT LEAST TEMPORARILY WAS A LITTLE LIKE THAT BRISK WIND CALLED THE TREMONTANA THAT RUSHES IN TO CHASE THE CLOUDS AWAY THE MOST SERIOUS OF THE THREE INQUIRIES INVOLVES WHAT MAGISTRATES SAID WAS THE GANGLAND ARSON OF THE PETRUZZELLI THEATER A MAJOR OPERA HOUSE IN BARI A SMALL SOUTHERN COASTAL CITY THAT PRIDES ITSELF ON ITS BROAD CULTURAL HORIZONS SE PARIGI AVESSE LU MERE SAREBBE UNA PICCOLA BARI IF PARIS WERE BY THE SEA IT WOULD BE A LITTLE BARI GOES THE SAYING IN IRREGULAR ITALIAN ONLY HALF IRONICALLY FERDINANDO PINTO THE DYNAMIC COSMOPOLITAN MANAGER OF THE THEATER A FAMILIAR FACE IN INTERNATIONAL THEATER CIRCLES WAS TAKEN INTO CUSTODY BY POLICE ON CHARGES OF ARSON AND LINKS WITH ORGANIZED CRIME HE THE NIGHTWATCHMAN AND THREE LOCAL UNDERWORLD FIGURES WERE ACCUSED OF SETTING FIRE TO THE THEATER IN THE EARLY MORNING OF OCT THE MOTIVE THE INVESTIGATING MAGISTRATES THEORIZED WAS TO SKIM OFF A CUT FROM THE LAVISH RECONSTRUCTION FUNDS EXPECTED TO POUR IN TO AID THE PETRUZZELLI AND THE GOOD CAUSE OF THE ARTS IN SOUTHERN ITALY AS IT HAPPENED THAT EXPECTED RUSH OF SYMPATHY FUNDS NEVER CAME THROUGH SINCE THE COURTS BLOCKED REBUILDING BECAUSE OF THE SUSPICION OF ARSON AT THE OPPOSITE END OF THE PENINSULA IN SANREMO ON THE ITALIAN RIVIERA ANOTHER SCANDAL IN THE PERFORMING ARTS BLEW UP WITH THE ARREST OF ADRIANO ARAGOZZINI A FORMER DIRECTOR OF THE TOWN'S POPULARMUSIC FESTIVAL WHO HAS CLOSE CONNECTIONS TO THE CHRISTIAN DEMOCRATS HE WAS ARRESTED ON CHARGES OF TAKING 500000 IN KICKBACKS TO FAVOR PERFORMERS AND ORGANIZERS IN THE BIGGEST ANNUAL SHOWCASE FOR MUSICIANS AND SONGWRITERS MONEY HE IS SAID TO HAVE PASSED ON TO CORRUPT LOCAL POLITICIANS THE THIRD CASE WAS AN INVESTIGATION INTO THE FRAUDULENT USE OF 18 MILLION FOR A NEVERCOMPLETED RESTORATION OF THE BAROQUE PALAZZO DEL PRINCIPE IN SCALEA CALABRIA THE CULTURAL HERITAGE MINISTRY WHICH WAS A NOTORIOUS PORK BARREL UNTIL REFORMER ALBERTO RONCHEY WAS NAMED MINISTER LAST YEAR WAS ROCKED AT THE HIGHEST LEVELS WHEN DIRECTOR GENERAL FRANCESCO SISINNI A MINISTRY VETERAN AND THE SECOND IN COMMAND WAS TAKEN INTO PREVENTIVE CUSTODY FOR SEVERAL DAYS WHILE JUDGES EXAMINED THE RECORDS OF THE CASE WHICH HAS NOT YET COME TO TRIAL THE PALAZZO DEL PRINCIPE SCAM IS JUST THE TIP OF THE ICEBERG OF PUBLIC MISMANAGEMENT OF ART RESTORATION AND MUSEUMS ACCORDING TO THE AUDIT COURT A BRANCH OF THE JUDICIARY THAT SERVES AS A GENERAL ACCOUNTING OFFICE AND HAS BEEN ONE OF THE TOUGHEST CRITICS OF ITALY'S CARELESS ATTITUDE TOWARD ITS VAST WEALTH OF ART THE COURT ALLEGES IN ITS JUSTRELEASED ANNUAL REPORT THAT MISMANAGEMENT AND OUTRIGHT THEFTS ARE MAKING THE EQUIVALENT OF ONE MUSEUM A YEAR DISAPPEAR FROM ITALY'S LEDGERS AND WARNS THAT MAFIA MONEY LAUNDERERS ARE INCREASINGLY USING STOLEN ITALIAN ART AND ARCHAEOLOGICAL ARTIFACTS AS PART OF THEIR RECYCLING PROCESS THE LEADING ART HISTORIAN FEDERICO ZERI AMONG OTHERS HAS OFTEN DENOUNCED THE CULTURAL MINISTRY'S FAILURE TO PRODUCE A COMPLETE CATALOG OF ART ARCHAEOLOGICAL ARTIFACTS AND HISTORICAL MONUMENTS THE ONLY WAY TO BLOCK THIEVES THEY SAY SOME YEARS BACK A CLEVER PROMOTER OF THE ITALIAN ECONOMY CAME UP WITH A NICE CATCH PHRASE SOME COUNTRIES HAVE RAW MATERIALS ITALY HAS ART THE NICE WORDS NOTWITHSTANDING THAT ART HAS CONTINUED TO FIGURE MAINLY IN THE CATEGORY OF ILLEGAL EXPORTS YET ITALIANS DIDN'T ALWAYS TREAT THEIR NATIONAL TREASURES SO BADLY IN THE LATE 1940S MAJOR MONUMENTS AND ARTWORKS IN CITIES SUCH AS PISA FLORENCE MILAN AND ROME THAT HAD BEEN WRECKED BY WARTIME BOMBING WERE LOVINGLY RESTORED BY A COUNTRY THAT WAS VERY MUCH POORER AND MORE HUMBLE THAN TODAY'S GROUP OF SEVEN MEMBER MAYBE BUT IT'S A BIG MAYBE TIMES ARE RIPE FOR A SIMILAR EFFORT MS RANDALL IS A MILANBASED WRITER 9307230002 930723 POLAND'S BANKING SECTOR DRAWS INTEREST BUT SOME QUESTIONS REMAIN ON SALE OF SLASKI STAKE BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL KATOWICE POLAND DO YOU REALIZE CHUCKLES MARIAN RAJCZYK RECEIVING A VISITOR IN HIS OFFICE ABOVE BANK SLASKI'S 1920SSTYLE BANKING HALL THAT YOU ARE IN THE WALL STREET OF KATOWICE BEHIND HIM STRETCHES WARSZAWSKA STREET ONE OF THE MAIN THOROUGHFARES OF THIS SOUTHERN INDUSTRIAL CITY OF 400000 FIVE YEARS AGO THERE WERE ONLY A FEW STATEOWNED BANKS ON THIS AVENUE LINED WITH SHABBY BUILDINGS TODAY THERE ARE 10 BANKS SOME STATEOWNED SOME PRIVATE SINCE EMBRACING CAPITALISM POLAND HAS SEEN EXPLOSIVE GROWTH IN ITS BANKING SECTOR MORE THAN 70 PRIVATELY OWNED INSTITUTIONS HAVE SPRUNG UP ALONGSIDE 14 BANKS STILL IN GOVERNMENT HANDS STATEOWNED SLASKI OF WHICH MR RAJCZYK IS CHIEF EXECUTIVE IS ONE OF THE BIGGEST WITH ASSETS OF AROUND 30 TRILLION ZLOTYS 174 BILLION ONE OF NINE BANKS HEWN FROM THE NATIONAL BANK OF POLAND IN 1989 SLASKI PRONOUNCED SHLONSKI IS ALSO WIDELY VIEWED AS ONE OF THE BESTRUN DESPITE PROBLEMS CAUSED BY AN INCREASE IN BAD AND DOUBTFUL LOANS THE BANK IS PROFITABLE AND WELLCAPITALIZED AS THE MAIN BANK IN ONE OF POLAND'S MOST INDUSTRIALIZED REGIONS SLASKI IS WELLPOSITIONED FOR GROWTH BUT AS THE STATE PREPARES TO PRIVATIZE SLASKI WITH PLANS TO SELL ABOUT 70 OF ITS CAPITAL TO OUTSIDE INVESTORS QUESTION MARKS OVER POLAND'S POLITICAL AND ECONOMIC STABILITY AND OVER SLASKI'S FUTURE MANAGEMENT MAKE AN INVESTMENT AT THIS STAGE SPECULATIVE AT BEST THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AND SWISS BANK CORP SWITZERLAND'S THIRDLARGEST COMMERCIAL BANK HAVE BOTH SHOWN INTEREST AND PRIVATE POLISH INVESTORS ARE EXPECTED TO RUSH IN BUT THAT'S WHERE THE PROBLEMS BEGIN POLAND'S CASHSTRAPPED GOVERNMENT FACES A DILEMMA SHOULD IT TRY TO INVOLVE WESTERN INSTITUTIONS SUCH AS THE EBRD AND SWISS BANK AND AS A RESULT RISK HAVING TO LOWER SLASKI'S SALE PRICE OR SHOULD IT JUST GO FOR THE HIGHEST PRICE POSSIBLE AT THE LATEST WORD OFFICIALS PLAN A COMPROMISE THEY WILL INVITE INSTITUTIONAL INVESTORS TO MAKE TENDERS BEFORE THE SALE PRICE IS SET WHEN THEY DO SET THE PRICE HOWEVER THEY STILL WILL HAVE TO BALANCE GREED WITH EXPEDIENCY THEY'RE CAUGHT BETWEEN A ROCK AND A HARD PLACE OBSERVES A WESTERN BANKER WHO HAS WATCHED POLISH OFFICIALS DEBATE THE ISSUE IF THEY FELT THERE WERE SUFFICIENT DEMAND THEY COULD SELL SHARES DIRECTLY TO SMALL INVESTORS BUT THE PROBLEM THEN WOULD BE TO ENSURE ADEQUATE CORPORATE GOVERNANCE IF NO SHAREHOLDERS WERE BIG ENOUGH TO EXERCISE INFLUENCE OVER THE BANK'S MANAGEMENT THE DEBATE IS EMBLEMATIC OF A FUNDAMENTAL CONFLICT FACING EUROPE'S FORMER COMMUNIST STATES AS PAST SALES HAVE SHOWN IT'S EASY TO GO FOR QUICK PROFITS BUT IN A SECTOR AS ESSENTIAL AS BANKING GOVERNMENTS MUST KEEP IN MIND THE NEED TO ENSURE ADEQUATE MANAGEMENT A LOOK AT WHAT HAPPENED AFTER WIELKOPOLSKI BANK KREDITOWY WAS PUT ON SALE IN APRIL HELPS TO EXPLAIN POLAND'S PROBLEM IN WHAT THE EBRD INTENDED AS A SHOW OF SUPPORT FOR POLISH BANKING IT PAID 210 BILLION ZLOTYS OR 115000 ZLOTYS A SHARE FOR A 285 STAKE IN WBK THE POLISH STATE RETAINED 30 OF THE BANK'S CAPITAL AND WBK EMPLOYEES WERE OFFERED 14 AT A 50 DISCOUNT WHEN THE PUBLIC TRANCHE OF THE FLOTATION WENT ON SALE AT 115000 ZLOTYS POLES LINED UP FOR SHARES THE OFFERING WAS SIGNIFICANTLY OVERSUBSCRIBED A BOOM ON THE WARSAW STOCK EXCHANGE HAS ADDED PARADOXICALLY TO THE PROBLEM WHEN WBK SHARES WERE QUOTED FOR THE FIRST TIME JUNE 22 THEY HIT 350000 ZLOTYS MORE THAN DOUBLE THE PRICE SET UNDER THE INITIAL OFFERING AFTER FALLING TO A LOW OF 320000 ZLOTYS THEY HAVE SINCE REBOUNDED TO MORE THAN 360000 ZLOTYS THE RISE REFLECTS SPECULATIVE FEVER RATHER THAN ANY REAL IMPROVEMENT IN THE BANK'S PROSPECTS BUT IT HAS PROMPTED ACCUSATIONS THAT THE GOVERNMENT SOLD WBK TOO CHEAP AGAINST THIS BACKGROUND SLASKI'S PRIVATIZATION HAS REPEATEDLY BEEN DELAYED THE OPTION OF INVOLVING ONE OR MORE STRATEGIC WESTERN PARTNERS IS STILL ON THE TABLE SUBJECT TO PRICING THE EBRD HAS INDICATED WILLINGNESS TO TAKE A STAKE IN SLASKI JUST AS IT DID IN WBK THE EBRD HAS MADE IT A CONDITION THAT SLASKI FORM A TWINNING ARRANGEMENT WITH A MAJOR WESTERN BANK WBK FOR EXAMPLE HAS A TWINNING RELATIONSHIP WITH ALLIED IRISH BANKS PLC UNDER WHICH THE IRISH BANK HELPS TO TRAIN WBK OFFICERS AND GIVES TECHNICAL AND OTHER ADVICE BUT THAT SHOULDN'T BE AN OBSTACLE SWISS BANK WANTS TO DEVELOP ITS INVESTMENT BANKING IN POLAND WHERE IT HAS 60 OF A SMALL POLISH CORPORATE FINANCE FIRM CALLED BUSINESS MANAGEMENT & FINANCE INTERNATIONAL THE SWISS ARE READY SUBJECT TO AGREEMENT ON A THREEYEAR CONTRACT TO HELP SLASKI STREAMLINE ITS OPERATIONS SWISS BANK REPRESENTATIVES WOULD SIT ON SLASKI'S BOARD AND ADVISE ON ITS COMMERCIAL ACTIVITIES IN RETURN SWISS BANK WOULD GET CASH AND A SMALL PERCENTAGE OF THE BANK'S SHARES THERE'S STILL A RISK THAT THE WHOLE PROCESS COULD BACKFIRE THE EBRD HAS WARNED THAT IT WON'T PAY TOO MUCH FOR A STAKE IN A BANK WITH AN UNCERTAIN COMMERCIAL FUTURE IN A COUNTRY OF UNCERTAIN POLITICAL STABILITY IF EBRD DOESN'T PARTICIPATE SWISS BANK WOULD ALSO LIKELY BACK OUT A CONVERSATION WITH MR RAJCZYK SHEDS LIGHT ON SLASKI'S STRONG POINTS AND ITS WEAKNESSES A FORCEFUL 64YEAROLD MR RAJCZYK HAS SPENT MOST OF HIS CAREER AS AN OFFICIAL OF THE NATIONAL BANK IN THE LATE 1980S WHILE IN CHARGE OF THE NATIONAL BANK'S CZESTOCHOWA REGIONAL OFFICE HE HELPED MASTERMIND THE CREATION OF THE NINE REGIONAL BANKS THAT WERE SPLIT OFF FROM THE NATIONAL BANK AS A REWARD HE GOT THE TOP JOB AT SLASKI ONE OF THE JEWELS IN THE NEW POLISH BANKING CROWN MINDFUL OF WHAT HE'D LEARNED OBSERVING WESTERN BANKING FROM AFAR HE SET ABOUT TRYING TO WHIP SLASKI INTO SHAPE ONE MAJOR PROBLEM WAS ITS DEEP INVOLVEMENT IN POLAND'S OUTDATED STEEL COALMINING AND OTHER HEAVY INDUSTRIES IN SURROUNDING SILESIA IN A CENTRALLY PLANNED ECONOMY THERE WAS NO PROBLEM LENDING TO SUCH COMPANIES BUT UNDER A CAPITALISTSTYLE SCENARIO MANY FIRMS STARTED RUNNING INTO TROUBLE TAKING ADVANTAGE OF A PERIOD IN 1990 WHEN INTEREST RATES SOARED MR RAJCZYK REORGANIZED SLASKI'S LOAN PORTFOLIO BY OFFERING FAVORABLE TERMS TO HEALTHY COMPANIES AND TURNING AWAY FIRMS IN POOR SHAPE HE DIVERSIFIED THE BANK'S CLIENTELE TAKING ON FOR EXAMPLE A WARSAW STEELWORKS AND THE FSM AUTO FACTORY NOW OWNED BY ITALY'S FIAT SPA ALONGSIDE CUSTOMERS IN SILESIA INEVITABLY THERE HAVE BEEN UPSETS FEW OF THE BANK'S STAFF HAD ANY EXPERIENCE IN ASSESSING LENDING RISKS OR RUNNING A COMMERCIAL ORGANIZATION MANY EMPLOYEES LEFT SOME BECAUSE THEY COULDN'T TAKE THE PACE OF CHANGE OTHERS BECAUSE THEY WERE OFFERED BETTERPAID JOBS AND NEW OPPORTUNITIES AT RIVAL BANKS OF 4200 STAFF TODAY FEWER THAN HALF ARE SURVIVORS FROM THE BEGINNING THERE WERE FINANCIAL LOSSES TOO AS FIRMS WENT BUST AND FAILED TO PAY BACK LOANS AFTER ITS INITIAL DIVERSIFICATION SLASKI'S ENTHUSIASM FOR PRIVATESECTOR BORROWERS WANED IT CONCENTRATED MORE ON BIG STATEOWNED FIRMS EVEN THAT DIDN'T SAVE IT FROM PROBLEMS EARLIER THIS YEAR IN A CLEANUP OF ITS BOOKS AFTER FOUR DECADES OF ACCOUNTING LAXITY IT PUBLISHED FIGURES SHOWING A RISE IN PROVISIONS FOR BAD AND DOUBTFUL LOANS TO 254 TRILLION ZLOTYS IN 1992 FROM 870 BILLION ZLOTYS IN 1991 TO COVER THE COST OF THESE PROVISIONS IT LOWERED ITS CAPITALADEQUACY RATIO AS CALCULATED UNDER POLISH NORMS TO 14 FROM 205 EVEN AT THE LOWER LEVEL ANALYSTS SAY SLASKI IS VERY WELLCAPITALIZED INTERNATIONAL NORMS CALL FOR MINIMUM CAPITALADEQUACY RATIOS OF 8 CALCULATED AS A PROPORTION OF CAPITAL AND RESERVES TO CREDITS THE CHALLENGE SLASKI FACES NOW IS TO TURN ITS PREEMINENT POSITION IN SILESIA INTO A TRULY COMPETITIVE NATIONWIDE NETWORK 9307230001 930723 YOUR MONEY MATTERS WEEKEND REPORT WHAT YOU DON'T NEED TO KNOW ABOUT INVESTING BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S A WAY TO MAKE INVESTING A LOT EASIER DON'T WASTE YOUR TIME WORRYING ABOUT THINGS YOU DON'T HAVE TO THINK ABOUT THERE ARE DOZENS OF INVESTMENTS AND INVESTMENT STRATEGIES THAT THE AVERAGE INDIVIDUAL DOESN'T NEED TO KNOW ABOUT TO BE A SUCCESSFUL INVESTOR THINGS THAT CAN ACTUALLY GET IN YOUR WAY THESE INCLUDE COMMODITIES LIMITED PARTNERSHIPS PENNY STOCKS AND VIRTUALLY ANYTHING THAT LOOKS LIKE IT BELONGS ON AN EYEEXAM CHART IPOS REMICS REITS UITS STRIPS MCATS AND TIGRS YOU DON'T KNOW WHAT THESE ARE YOU DON'T HAVE TO KNOW THE SAME GOES FOR SHORTSELLING CALL WRITING FUTURES TRADING AND MARKET TIMING THAT DOESN'T MEAN THAT THESE AREN'T LEGITIMATE INVESTMENTS AND INVESTMENT STRATEGIES OR THAT SAVVY INVESTORS DON'T MAKE MONEY USING THEM THEY ARE USED EVERY DAY AND SOME INVESTORS MAKE A LOT OF MONEY WITH THEM BUT FOR THE AVERAGE INDIVIDUAL INVESTOR THE WEALTH OF PRODUCTS AND APPROACHES CAN BE SIMPLY TOO OVERWHELMING YOU COULD READ A DOZEN BOOKS WATCH ALL THE CABLE SHOWS GET AN MBA FROM HARVARD AND YOU STILL WOULDN'T KNOW ENOUGH ABOUT THIS STUFF TO DO MUCH GOOD SAYS LYNN HOPEWELL EDITOR OF THE JOURNAL OF FINANCIAL PLANNING FURTHER WHILE DROPPING THESE MACHO WORDS AT BARBECUES MAY IMPRESS YOUR FRIENDS IT ALSO WILL CLUE IN YOUR BROTHERINLAW THE BROKER THAT YOU'RE A BABE IN THE WOODS OF INVESTING AND ARE RIPE TO BE TALKED INTO SOMETHING COMPLICATED BECAUSE YOU PROBABLY WON'T ADMIT THAT YOU DON'T UNDERSTAND WHAT HE'S TALKING ABOUT VERY OFTEN A LITTLE KNOWLEDGE IS NOT VERY HELPFUL SAYS DAVID DREMAN CHAIRMAN AND CHIEF INVESTMENT OFFICER OF DREMAN VALUE MANAGEMENT IF YOU HAVE A SMATTERING OF MEDICAL KNOWLEDGE YOU CAN'T DO HEART SURGERY BUT SOME DOCTORS WILL TAKE A SMATTERING OF INVESTMENT KNOWLEDGE AND DON'T DO VERY WELL WHEN THEY INVEST HERE ARE SOME OF THE THINGS THAT MR DREMAN AND OTHER INVESTING EXPERTS SAY YOU DON'T NEED TO KNOW ABOUT COMMODITIES COMMODITY FUTURES ARE CONTRACTS TO BUY OR SELL CERTAIN AMOUNTS OF PORK BELLIES WHEAT COCOA MINING PRODUCTS OR OTHER COMMODITIES AT GIVEN PRICES WITHIN A SPECIFIED PERIOD BUT THESE SIMPLE GOODS ARE A NIGHTMARE OF COMPLEXITY WHEN IT COMES TO INVESTING ANYTHING THAT EATS OR GROWS FORGET ABOUT IT SAYS MR HOPEWELL WHO IS ALSO PRESIDENT OF THE MONITOR GROUP AN INVESTMENT CONSULTING FIRM IN FALLS CHURCH VA IT ISN'T THAT THEY CAN'T BE GOOD INVESTMENTS BUT THEY REQUIRE INORDINATE AMOUNTS OF TIME TO RESEARCH TO FOLLOW SAYS MR DREMAN DESPITE WHAT YOU HEAR ABOUT ALL THE MONEY TO BE MADE ABOUT 90 OF COMMODITIES ACCOUNTS GET BLOWN OUT IN A YEAR IT'S A TOUGH GAME OPTIONS THESE ARE AGREEMENTS ALLOWING AN INVESTOR TO BUY OR SELL SHARES OF STOCK WITHIN A CERTAIN PERIOD FOR A STIPULATED PRICE PUTS ARE OPTIONS TO SELL AND CALLS ARE OPTIONS TO BUY THAT'S ALL YOU NEED TO KNOW FOR TRIVIAL PURSUIT GAMES EXPERTS SAY I'VE NEVER DONE MUCH WITH OPTIONS PUTS AND CALLS SAYS JOHN NEFF MANAGING PARTNER OF WELLINGTON MANAGEMENT GROUP THEY CAN BE VORACIOUSLY TIMECONSUMING AND THE TIME WOULD BE MORE IMPORTANTLY ALLOCATED IN THE QUESTION OF WHAT STOCKS TO BUY OR SELL COMMISSIONS WILL CHEW YOU UP AND THE ODDS AREN'T SO AWFULLY GOOD EITHER IT'S A SHAKE OF THE DICE AND YOU CAN GET WIPED SHORT SELLING THIS IS THE SALE OF BORROWED STOCK BY AN INVESTOR WHO HOPES TO MAKE A PROFIT BY BUYING AN EQUAL NUMBER OF SHARES LATER AT A LOWER PRICE TO REPLACE THE BORROWED STOCK THE EXPERTS LIKEN THIS TO CASINO GAMBLING AND CRAP SHOOTS I'VE NEVER SOLD A STOCK SHORT IN MY LIFE SAYS PETER LYNCH FORMER MANAGER OF FIDELITY'S SUCCESSFUL MAGELLAN FUND HE SAYS IT MAKES MORE SENSE SPENDING TIME FIGURING OUT WHAT STOCKS TO BUY LIMITED PARTNERSHIPS THESE ARE DEALS THAT INVEST IN OIL AND GAS VENTURES REAL ESTATE CABLE TV MOVIE PRODUCTION COMPANIES OR EVEN AIRPLANE LEASES THE IDEA IS YOU EARN INCOME FROM THE RENT LEASES OR BUSINESS CASH FLOW THEN GET CAPITAL GAINS WHEN THE BUSINESS OR PROPERTY IS SOLD IN 10 OR 20 YEARS THAT'S THE IDEA IN REALITY THESE ARE HIGHLY SPECULATIVE RISKY INVESTMENTS THAT TEND TO SIPHON ALL THE PROFITS TO THE GUYS WHO SET THEM UP LEAVING THE LIMITED PARTNERS INVESTORS LIKE YOU WITH LIMITED AMOUNTS OF MONEY SPEAKING FROM EXPERIENCE ANY TIME YOU SEE A LIMITED PARTNERSHIP RUN AS FAST AS YOU CAN IN THE OPPOSITE DIRECTION SAYS MR HOPEWELL THEY'RE COMPLEX AND THERE'S SO MUCH ROOM FOR ABUSE BY THE MANAGERS AND PARTNERS IT EXPOSES YOU TO TOO MUCH RISK UNIT INVESTMENT TRUSTS THESE ARE FIXED PORTFOLIOS OF SECURITIES SUCH AS STOCKS MUNICIPAL BONDS OR MORTGAGEBACKED SECURITIES YIELDS AREN'T GUARANTEED THE TRUSTS HAVE NO TRACK RECORDS COMMISSIONS CAN BE HIGH AND THE MARKET CAN BE LIMITED IF YOU WANT TO SELL THE EXPERTS RECOMMEND STICKING WITH MUTUAL FUNDS WHICH HAVE CLEARLY DISCLOSED TRACK RECORDS AND FEES AND ARE EASILY BOUGHT AND SOLD SPECIALIZED BONDS CONVERTIBLE BONDS ARE BONDS YOU CAN CONVERT INTO A FIXED NUMBER OF SHARES OF THE COMPANY'S STOCK THEY DON'T PAY AS MUCH INTEREST AS THE REGULAR BONDS AND YOU DON'T GET AS MUCH APPRECIATION AS YOU WOULD WITH THE REGULAR STOCK JUNK BONDS ALIAS HIGHYIELD SECURITIES PAY HIGH YIELDS BECAUSE YOU TAKE HIGH RISKS ZEROCOUPON BONDS PAY NO INTEREST BUT SELL AT A DISCOUNT AND ARE REDEEMED AT MATURITY FOR THE FULL FACE AMOUNT AT BEST YOU GET A MEDIOCRE RETURN AT WORST INFLATION ERODES THE VALUE OR YOU NEED THE MONEY AND HAVE TO CASH THEM IN EARLY TAKING A WHOPPING LOSS THE EXPERTS' ADVICE MOST INVESTORS SHOULD SIMPLY STEER CLEAR OF INDIVIDUAL ISSUES OF CONVERTIBLES JUNK AND ZEROS PENNY STOCKS THESE ARE SHARES OF STOCK IN SMALL COMPANIES THAT TRADE OVER THE COUNTER THEY'RE CALLED PENNY STOCKS BECAUSE THEIR SHARE PRICE MAY BE MERE PENNIES SUCH STOCKS USUALLY SELL FOR LESS THAN 5 A SHARE BUT PENNY STOCKS ARE RARELY A BARGAIN AT ANY PRICE THE EXPERTS SAY THEY ARE HIGHLY SPECULATIVE THINLY TRADED AND HAVE HUGE HIDDEN MARKUPS WELLINGTON'S MR NEFF COMPARES PENNY STOCKS TO THE RACETRACK IPOS THESE ARE INITIAL PUBLIC OFFERINGS OF STOCK SADLY ONCE ISSUED THEIR PRICE TENDS TO SINK LIKE A STONE STAY AWAY SAYS FIDELITY'S MR LYNCH PARTICULARLY NOW NEW ISSUES HAVE DRASTICALLY UNDERPERFORMED THE MARKET THAT'S A LOSERS' GAME MARKET TIMING THIS IS THE PRACTICE OF SHIFTING INVESTMENTS OR BUYING OR SELLING BECAUSE YOU THINK STOCKS WILL GO UP OR DOWN INTEREST RATES WILL CHANGE OR A WORLD WAR WILL BREAK OUT IT'S FUN BUT IT DOESN'T WORK THERE'S NO ACCEPTED ACADEMIC EVIDENCE THAT MARKET TIMING WORKS OVER MARKET CYCLE SAYS JAMES E WILSON AN INVESTMENT ADVISER IN COLUMBIA SC ECONOMICS WHILE AN UNDERSTANDING OF ECONOMICS IS AN ADMIRABLE THING THE EXPERTS CAUTION INVESTORS TO ENJOY IT NOT APPLY IT AS MR LYNCH IS FOND OF SAYING IF ANYONE SPENDS MORE THAN 14 MINUTES WONDERING WHAT THE ECONOMY WILL BE LIKE IN A YEAR THEY'VE WASTED 12 MINUTES 9307220160 930722 WHO'S NEWS MONSANTO CO MONSANTO CO ST LOUIS RICHARD U DE SCHUTTER 53 YEARS OLD PRESIDENT OF THIS CHEMICAL CONCERN'S GD SEARLE & CO DRUG UNIT WAS NAMED CHIEF OPERATING OFFICER A NEWLY CREATED POSITION HE REMAINS PRESIDENT OF THE UNIT 9307220159 930722 WHO'S NEWS TRANSCO ENERGY CO TRANSCO ENERGY CO HOUSTON LARRY J DAGLEY WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS PIPELINE COMPANY MR DAGLEY 45 YEARS OLD SUCCEEDS JOHN U CLARKE WHO RESIGNED IN MAY TO PURSUE OTHER OPPORTUNITIES MR DAGLEY WAS MOST RECENTLY SENIOR VICE PRESIDENT AND CONTROLLER 9307220158 930722 WHO'S NEWS NEXT COMPUTER INC NEXT COMPUTER INC REDWOOD CITY CALIF DOMINIQUE TREMPONT 39 YEARS OLD DIRECTOR OF FINANCE ADMINISTRATION FOR RAYCHEM CORP WAS NAMED CHIEF FINANCIAL OFFICER AND A VICE PRESIDENT AT THIS SOFTWARE CONCERN HE SUCCEEDS MARCEL GANI WHO LEFT IN MARCH FOR UNDISCLOSED REASONS 9307220157 930722 WHO'S NEWS MCCLATCHY NEWSPAPERS INC MCCLATCHY NEWSPAPERS INC SACRAMENTO CALIF BOOTH GARDNER 57 YEARS OLD FORMER WASHINGTON STATE GOVERNOR HAS BEEN NAMED TO THE BOARD OF THIS NEWSPAPER COMPANY ALSO NAMED WERE FRED RUIZ 49 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RUIZ FOOD PRODUCTS INC DINUBA CALIF AND WILLIAM HONEYSETT 55 MCCLATCHY'S VICE PRESIDENT OF OPERATIONS THE MOVE EXPANDS THE BOARD TO 13 9307220156 930722 TECHNOLOGY SUPERMAC TECHNOLOGY RESULTS SUNNYVALE CALIF SUPERMAC TECHNOLOGY INC SAID STRONG SALES OF ITS COLOR PUBLISHING SYSTEMS DIGITAL VIDEO PRODUCTS AND INCREASED LICENSING FEES LED TO RECORD SECONDQUARTER NET INCOME OF 24 MILLION OR 26 CENTS A SHARE THAT'S A 67 RISE FROM THE 14 MILLION OR 20 CENTS A SHARE REPORTED A YEAR EARLIER THE MAKER OF GRAPHIC SYSTEMS FOR PERSONAL COMPUTERS SAID REVENUE JUMPED 79 TO 511 MILLION FROM 285 MILLION A YEAR EARLIER 9307220155 930722 WHO'S NEWS GRAND METROPOLITAN PLC GRAND METROPOLITAN PLC LONDON JAMES B ADAMSON HAS BEEN PROMOTED FROM CHIEF OPERATING OFFICER TO CHIEF EXECUTIVE OFFICER OF THIS RETAILING FOOD AND LIQUOR COMPANY'S BURGER KING CORP FASTFOOD UNIT MR ADAMSON 45 YEARS OLD SUCCEEDS BARRY J GIBBONS 47 WHO REMAINS CHAIRMAN BUT WHO IS EXPECTED TO BE REASSIGNED BY GRAND MET A SPOKESWOMAN FOR MIAMIBASED BURGER KING SAID MR GIBBONS IS EXPLORING INTERNATIONAL BRAND DEVELOPMENT OPPORTUNITIES WITH IAN MARTIN GRAND MET'S CHIEF OPERATING OFFICER MR GIBBONS WAS ASSIGNED BY GRAND MET TO FIX BURGER KING AFTER GRAND MET ACQUIRED THE OPERATION AS PART OF ITS PILLSBURY CO TAKEOVER IN 1989 THE SPOKESWOMAN SAID 9307220154 930722 AMSCO EARNINGS PLUNGE PITTSBURGH AMSCO INTERNATIONAL INC'S SECONDQUARTER NET INCOME SKIDDED 83 AFTER A RESTRUCTURING CHARGE AND THE MEDICAL EQUIPMENT CONCERN SAID OPERATING RESULTS FOR THE REST OF THE YEAR MAY BE BELOW YEARAGO LEVELS AMSCO HAD A PROFIT OF 14 MILLION OR FIVE CENTS A SHARE INCLUDING A 22 MILLION CHARGE A YEAR AGO AMSCO EARNED 82 MILLION OR 26 CENTS A SHARE AMSCO CITED A HESITANCY IN CAPITAL EXPENDITURES IN HEALTHCARE INDUSTRIES BECAUSE OF THE UNCERTAINTY ABOUT A HEALTHCARE OVERHAUL 9307220153 930722 RAYCHEM FISCAL 4TH QUARTER NET MENLO PARK CALIF RAYCHEM CORP SAID LICENSING FEES AND SEVERANCE CHARGES FROM A SALE OF EQUITY INTEREST CAUSED IT TO POST FISCAL FOURTHQUARTER NET INCOME OF 451000 OR ONE CENT A SHARE THAT COMPARES WITH A LOSS OF 258 MILLION OR 65 CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY TOOK A 30 MILLION RESTRUCTURING CHARGE FOR THE PERIOD ENDED JUNE 30 THE ELECTRONICS AND TELECOMMUNICATIONS CONCERN REPORTED THAT REVENUE GREW 3 TO 3611 MILLION FROM 3511 MILLION A YEAR EARLIER 9307220152 930722 GENERAL NUTRITION NOTES PITTSBURGH GENERAL NUTRITION COS SAID IT WILL REDEEM 35 MILLION OF 11 3/8 SENIOR SUBORDINATED NOTES DUE 2000 ON AUG 20 AT 109953 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE HEALTHFOOD RETAILER SAID IT WILL FINANCE THE REDEMPTION WITH 465 MILLION IN PROCEEDS FROM ITS SHARE OF THE JUSTCOMPLETED PUBLIC OFFERING OF 2350000 SHARES AT 37 A SHARE 9307220151 930722 INTERNATIONAL ERICSSON UNIT WINS BULGARIA JOB STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SAID ITS SPANISH SUBSIDIARY ERICSSON SA HAS BEEN SELECTED AS ONE OF TWO SUPPLIERS FOR THE FIRST CONTRACT FOR DIGITAL SWITCHING EQUIPMENT IN BULGARIA'S NATIONAL TELECOMMUNICATIONS NETWORK ERICSSON'S PORTION OF THE CONTRACT IS VALUED AT 135 MILLION KRONOR 169 MILLION THE SWEDISH GROUP SAID THE PROJECT WILL BE FINANCED THROUGH THE EUROPEAN INVESTMENT BANK IT SAID BULGARIAN TELECOMMUNICATIONS CO INTENDS TO INITIATE DIGITALIZATION OF THE NATIONAL NETWORK BETWEEN 1993 AND 1995 SAID ERICSSON 9307220150 930722 GLEASON SEES DROP IN SALES ROCHESTER NY GLEASON CORP SAID IT EXPECTS 1993 SALES TO FALL 20 TO 25 FROM YEARAGO LEVELS AND RESULTS TO BE NO BETTER THAN BREAKEVEN THE MAKER OF GEAR PRODUCTION EQUIPMENT BLAMED A CONTINUED WORLDWIDE SLOWDOWN IN THE INDUSTRIES WE SERVE GLEASON REPORTED SECONDQUARTER PROFIT OF 122000 OR TWO CENTS A SHARE AGAINST A YEARAGO LOSS OF 38 MILLION OR 69 CENTS A SHARE FOR 1992 GLEASON HAD A LOSS AFTER CHARGES AND ACCOUNTING CHANGES OF 612 MILLION OR 1121 A SHARE ON SALES OF 1473 MILLION 9307220149 930722 F&C INTERNATIONAL TO SELL UNIT CINCINNATI F&C INTERNATIONAL INC SAID IT WON BANKRUPTCYCOURT APPROVAL TO SELL ITS FRAGRANCE DIVISION TO TECHNOLOGY FLAVORS & FRAGRANCES INC FOR 47 MILLION PLUS OTHER PAYMENTS FOR INVENTORY AND EQUIPMENT THE FRAGRANCE AND FLAVOR MAKER FILED FOR CHAPTER 11 PROTECTION IN APRIL AFTER FIRING ITS CHAIRMAN AMID INVENTORY DISCREPANCIES 9307220148 930722 INTERNATIONAL ITALIAN OUTPUT IS DOWN ROME ITALY'S GROSS DOMESTIC PRODUCT FELL A REAL OR INFLATIONADJUSTED 01 IN THE FIRST QUARTER OF 1993 FROM THE FINAL QUARTER OF 1992 AND WAS DOWN 09 FROM THE FIRST QUARTER OF 1992 THE NATIONAL STATISTICS AGENCY ISTAT SAID THE YEARONYEAR DROP WAS SLIGHTLY WORSE THAN ANALYSTS HAD EXPECTED 9307220147 930722 INTERNATIONAL ITALIAN INDUSTRY'S ORDERS UP MILAN THE INDEX THAT MEASURES THE AGGREGATE VALUE OF ORDERS TO ITALIAN INDUSTRY ROSE 28 IN MARCH FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT ANNOUNCED THE RISE IN MARCH COMPARED WITH YEARONYEAR DROPS OF 45 IN JANUARY AND 29 IN FEBRUARY INDUSTRIAL ORDERS FROM ITALIAN COMPANIES SLUMPED 11 IN MARCH FROM A YEAR EARLIER WHILE FOREIGN ORDERS SHOT UP 36 9307220146 930722 SHORT INTEREST ON BIG BOARD HOLDS STEADY CHRYSLER DISNEY FIGURES ARE HIGH BUT BELOW LEVEL OF MONTH EARLIER BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE WAS ESSENTIALLY FLAT AT MIDJULY HAVING ACHIEVED A RECORD LEVEL OF SLIGHTLY MORE THAN 104 BILLION SHARES A MONTH EARLIER BIG BOARD SHORT INTEREST TOTALED 1039091121 SHARES DOWN FROM 1042482700 A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE AGAIN REACHED A RECORD LEVEL RISING 61 TO 97272426 SHARES FROM 91714049 A REVISED FIGURE CHRYSLER CORP AGAIN LED THE LIST OF COMPANIES WITH THE HIGHEST SHORT INTEREST 167 MILLION SHARES BUT THAT WAS A DECREASE OF ABOUT ONE MILLION SHARES FROM THE MIDJUNE TRADING MONTH WALT DISNEY CO CONTINUED TO SHOW HIGH SHORT INTEREST 152 MILLION SHARES ALTHOUGH THAT WAS SLIGHTLY LOWER THAN THE MONTH BEFORE WALMART STORES INC ALSO WAS AROUND THE TOP OF THE LIST WITH 142 MILLION OF ITS SHARES SHORTED AN INCREASE OF 12 MILLION FROM MIDJUNE TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS DESPITE THE HISTORIC LEVELS OF RECENT MONTHS SHORT INTEREST HAS BECOME DIFFICULT TO USE AS A TRUE SIGN OF INVESTOR SENTIMENT THAT'S BECAUSE MUCH OF IT IS ATTRIBUTABLE TO PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS 9307220145 930722 INTERNATIONAL TURKISH TRADE DEFICIT ANKARA TURKEY TURKEY'S FOREIGN TRADE DEFICIT WIDENED TO 119 BILLION IN MAY FROM 591 MILLION A YEAR EARLIER THE STATE INSTITUTE OF STATISTICS ANNOUNCED IN THE FIRST FIVE MONTHS OF THE YEAR THE DEFICIT SWELLED TO 5 BILLION FROM 267 BILLION IN THE SAME PERIOD OF 1992 THE INSTITUTE ADDED 9307220144 930722 LEISURE & ARTS FILM VISITS TO VIETNAM AND A POET'S LAMENT BY JULIE SALAMON IN 1988 THI THANH NGA A VIETNAMESEAMERICAN ACTRESS WORKING IN HOLLYWOOD TOLD HER FATHER SHE WAS THINKING ABOUT RETURNING TO VIETNAM THE COUNTRY HER FAMILY HAD LEFT IN 1966 WHEN SHE WAS FOUR YEARS OLD HER FATHER WHO HAD BEEN THE PRESS OFFICER FOR THE SAIGON GOVERNMENT TOLD HER HE THOUGHT THE TRIP WAS NOT A GOOD IDEA THI THANH NGA WHO NOW CALLS HERSELF SIMPLY TIANA MADE THE TRIP ANYWAY THEN RETURNED AGAIN AND AGAIN 12 TIMES IN FOUR YEARS THIS WASN'T A CASUAL ODYSSEY TIANA RECORDED HER TRIPS ON FILM AND HAS TURNED THIS FOOTAGE INTO A SHREWDLY CHARMING AND POIGNANT DOCUMENTARY CALLED FROM HOLLYWOOD TO HANOI LIKE MANY SUCCESSFUL IMMIGRANTS HER FATHER WORKED FOR VOICE OF AMERICA IN THE US AFTER FLEEING SAIGON HER PARENTS WANTED THEIR CHILDREN TO BE PERFECT AMERICANS TIANA CONFORMED THEN REBELLED WHEN SHE WAS A TEENAGER BY RUNNING AWAY FROM HER FAMILY'S ADOPTED HOME OF SAN JOSE CALIF BUT EVEN HER REBELLION FOLLOWED AN AMERICAN TRADITION SHE WENT TO HOLLYWOOD TO BECOME A STAR INSTEAD UNDER THE NAME TIANA ALEXANDER SHE BECAME A KARATE PRINCESS HER MOVIE CAREER WAS LIMITED MAINLY TO CHEESY MARTIALARTS MOVIES HER HOLLYWOOD EXPERIENCE CLARIFIED WHAT SHE ALREADY KNEW SHE WAS AMERICAN BUT SHE ALSO WASN'T SHE WANTED TO FIGURE OUT WHO SHE WAS AND NEEDED TO SEE WHERE SHE WAS FROM THE PLACE HER FATHER TOLD HER SHE WOULD NEVER SEE AGAIN TIANA TELLS THE STORY OF THIS MISSION WITH A BREEZY WIT THAT DOESN'T UNDERMINE HER COMPASSION FOR THE COUNTRY SHE LEFT BEHIND THIS ISN'T A POLITICAL FILM TIANA CONDUCTS SYMPATHETIC INTERVIEWS WITH PEOPLE ACROSS THE POLITICAL SPECTRUM IN VIETNAM INCLUDING PHAM VAN DONG FORMER PREMIER OF NORTH VIETNAM AND TRAN TRUNG DUNG HER UNCLE A FORMER MINISTER OF DEFENSE FOR SOUTH VIETNAM WHO SPENT 13 YEARS IN A NORTH VIETNAMESE TRAINING CAMP AT THE CONCLUSION OF THE INTERVIEW WITH HER UNCLE SHE EXCLAIMS WHAT A FEISTY GUY DON'T LET THIS VALLEY GIRL LOCUTION FOOL YOU TIANA IS NO BIMBO HER FILM IS A MARVELOUS PORTRAIT OF A SMART WOMAN TRYING TO COME TO GRIPS WITH THE TWO POWERFUL CULTURAL CURRENTS THAT RUN THROUGH HER THIS KIND OF RECONCILIATION IS ALWAYS DIFFICULT BUT ESPECIALLY SO IN THIS INSTANCE WHERE THE TWO CULTURES WERE SO RECENTLY AT WAR WITH ONE ANOTHER AND ESPECIALLY WHEN THE FATHER SHE CLEARLY ADORES AND DEDICATED HER MOVIE TO RETAINS HIS BITTERNESS AND WOULD LIKE HIS DAUGHTER TO FEEL THE SAME WAY MAYBE TIANA SEES WHAT SHE WANTS TO SEE BUT SHE DOESN'T FIND MUCH BITTERNESS DURING HER TRAVELS OF COURSE SHE DOES FIND MUCH SADNESS VISITING FORMER BATTLEGROUNDS AND A HOSPITAL SPECIALIZING IN AGENT ORANGE VICTIMS THIS MEMOIR HAS THE RHYTHM AND FEELING OF A TOUGHMINDED FAIRY TALE HOW COULD IT NOT TIANA'S PAST HAS A KIND OF MYTHIC QUALITY THE STORY OF A PROMINENT SAIGON FAMILY MODERN BUT STEEPED IN TRADITION AND FOLKLORE UPROOTED BY WAR THE WAR CONTINUED BUT IT NO LONGER SEEMED TO HAVE ALL THAT MUCH TO DO WITH TIANA'S RELOCATED FAMILY IT BECAME JUST ANOTHER HORROR STORY ON THE EVENING NEWS BUT TIANA WAS NEVER FULLY CONVINCED THAT VIETNAM WAS PART OF HER PAST SHE WAS ALWAYS AWARE OF THE VAST DIFFERENCE BETWEEN HER PROBLEMS WOULD SHE BE PROM QUEEN OR NOT AND THE SUFFERING HER RELATIVES WERE ENDURING SHE DEVELOPED THE UNIQUELY CHIPPER SENSE OF THE ABSURD THAT HELPS MAKE THIS VIETNAM MOVIE UNLIKE ANY OTHER THE HIGHMINDED PRETENSIONS OF POETIC JUSTICE WERE PROBABLY INEVITABLE AFTER THE ACCOLADES HEAPED ON JOHN SINGLETON'S POWERFUL FIRST FILM BOYZ N THE HOOD HOOD WAS NOT ONLY WELL MADE BUT IT CARRIED A STRONG ANTIVIOLENCE MESSAGE MR SINGLETON'S SECOND FILM HOWEVER SEEMS MORE LIKE THE BLUEPRINT FOR A FILM HE SHOULD BE DOING THAN A STORY HE UNDERSTANDS OR CARES ABOUT VERY LITTLE FEELS TRUE IN THIS MOVIE ABOUT A HAIRDRESSER WHO HAS RETREATED FROM THE SORROWS OF HER LIFE INTO POETRY AND WHO FALLS IN LOVE AGAINST HER WILL WITH A POSTAL WORKER WHO WANTS TO BE A MUSICIAN THE PREMISE IS FINE THE EXECUTION IS HAPHAZARD THE CAMERA WORK IS SKILLFUL AS ONE WOULD EXPECT FROM SOMEONE WITH MR SINGLETON'S DIRECTORIAL TALENTS BOYZ N THE HOOD WASN'T A FLUKE BUT THE SCRIPT HE HAS WRITTEN HERE SHOWS LITTLE OF THE EMPATHY FOR HIS YOUNG FEMALE CHARACTERS THAT HE OBVIOUSLY HAD FOR THE TEENAGE BOYS IN HIS FIRST MOVIE HE SUBSTITUTES STREET VULGARITY FOR WIT AND SINCERITY FOR ALL FORMS OF CONVERSATION IN FACT THE VILE LANGUAGE MAY BE ACCURATE BUT THAT DOESN'T MAKE IT LESS VILE THIS ISN'T A DOCUMENTARY MR SINGLETON COULD HAVE TAKEN SOME POETIC LICENSE THE SINGER JANET JACKSON IN HER MOVIE DEBUT IS NEITHER GOOD NOR BAD AS JUSTICE THE POETHAIRDRESSER SHE JUST IS SHE DOES HOWEVER MANAGE TO MAKE THE MAYA ANGELOU POETRY WRITTEN FOR THE FILM SEEM TOO UNINSPIRED FOR GREAT POETRY AND TOO POLISHED FOR HER CHARACTER TO HAVE WRITTEN VIDEO TIP YOU CAN GET A SENSE OF THE TACKY FLAVOR OF TIANA'S HOLLYWOOD YEARS WITH CATCH THE HEAT IN THIS 1987 PICTURE SHE PLAYS A NARCOTICS COP IN SAN FRANCISCO SENT UNDERCOVER TO SOUTH AMERICA TO DESTROY A DRUG EMPIRE ROD STEIGER PLAYS THE DRUG LORD 9307220143 930722 MASSACHUSETTS SEEKS DOCUMENTS IN REVIEW OF BOND UNDERWRITING BOSTON THE MASSACHUSETTS INSPECTOR GENERAL REQUESTED DOCUMENTS COVERING ISSUANCE OF MORE THAN 500 MILLION OF BONDS BY THE CITY OF BOSTON AND OTHER LOCAL AUTHORITIES IN A WIDENING REVIEW OF MUNICIPAL BOND UNDERWRITING IN THE STATE THE DOCUMENTS LARGELY COVER BOSTON'S DEALINGS WITH LAZARD FRERES & CO THROUGH ITS BOSTON OFFICE WHICH WAS HEADED BY MARK S FERBER AN INQUIRY INTO LAZARD AND MR FERBER IS UNDER WAY FOCUSING ON ADVISORY WORK FOR THE MASSACHUSETTS WATER RESOURCES AUTHORITY THE INSPECTOR GENERAL HAS FOUND THAT AT THE SAME TIME LAZARD AND MR FERBER ADVISED MWRA THEY WERE PAID BY MERRILL LYNCH & CO 28 MILLION FOR OTHER WORK WITHOUT FULLY DISCLOSING THAT RELATIONSHIP TO THE PUBLIC WORKS AGENCY MERRILL IS ONE OF THE MWRA'S LEAD UNDERWRITERS SEPARATELY THE MWRA BOARD VOTED AS EXPECTED TO DISMISS MR FERBER AND HIS NEW FIRM FIRST ALBANY CORP AND ALL OF ITS UNDERWRITING TEAM INCLUDING MERRILL LYNCH GOLDMAN SACHS & CO AND BEAR STEARNS & CO THESE FIRMS AREN'T ACCUSED OF ILLEGALITY BUT THE MWRA'S CHIEF QUESTIONED THE COZY RELATIONSHIP BETWEEN MERRILL AND THE BOND ADVISER AND WILL ASK ALL OF THE FIRMS TO REBID UNDER TOUGHER RULES THE INSPECTOR GENERAL ALSO FOUND THAT IN ADDITION TO THE PAYMENT BY MERRILL FIRST ALBANY PAID LAZARD 10000 A MONTH IN AN UNWRITTEN AGREEMENT FOR UNSPECIFIED SERVICES DURING PART OF 1991 WHEN FIRST ALBANY'S UNDERWRITING SERVICES TO THE AGENCY WERE UNDER REVIEW WAYNE BUDD AN ATTORNEY FOR FIRST ALBANY SAID ALL UNDERWRITERS WERE REVIEWED AT THE TIME AND ALL WERE RETAINED HE SAID THE IMPLICATION BY THE INSPECTOR GENERAL THAT FIRST ALBANY ADVANCED ITS POSITION AS A RESULT OF THE PAYMENTS TO LAZARD IS FLATLY UNTRUE A LAZARD SPOKESMAN DECLINED TO COMMENT 9307220142 930722 INTERNATIONAL BASEL CONSUMER PRICE INDEX BASEL SWITZERLAND BASEL'S CONSUMER PRICE INDEX IN JULY FELL 01 FROM JUNE BUT ROSE 37 COMPARED WITH THE SAME MONTH A YEAR AGO THE CANTONAL STATISTICS OFFICE SAID THE GOVERNMENT ATTRIBUTED JULY'S MONTHTOMONTH DECLINE TO A DROP IN FOOD PRICES 9307220141 930722 WHO'S NEWS PUROLATOR PRODUCTS CO PUROLATOR PRODUCTS CO TULSA OKLA SAL H ALFIERO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MARK IV INDUSTRIES WAS NAMED A DIRECTOR OF THIS FILTER MAKER BRINGING THE BOARD TO EIGHT MEMBERS 9307220140 930722 INTERNATIONAL JAPANESE WHOLESALE PRICES TOKYO JAPAN'S OVERALL WHOLESALE PRICES DURING THE FIRST 10 DAYS OF JULY ROSE 01 FROM THE PREVIOUS 10 DAYS AND WERE DOWN 32 FROM THE YEAREARLIER PERIOD THE BANK OF JAPAN SAID JAPAN'S OVERALL WHOLESALE PRICES IN JUNE FELL 05 FROM MAY AND WERE DOWN 32 FROM THE YEAREARLIER MONTH 9307220139 930722 WHO'S NEWS CPC INTERNATIONAL INC CPC INTERNATIONAL INC ENGLEWOOD CLIFFS NJ WILLIAM S NORMAN 55 YEARS OLD WAS ELECTED A DIRECTOR OF THE FOOD PRODUCTS COMPANY INCREASING THE BOARD'S SIZE TO 13 MR NORMAN IS AN EXECUTIVE VICE PRESIDENT OF AMTRAK 9307220138 930722 PENN TRAFFIC TO CUT STAFF SYRACUSE NY PENN TRAFFIC CO SAID IT WILL OFFER EARLY RETIREMENT AND SEPARATION INCENTIVES TO AS MANY AS 1000 OF ITS 23000 WORKERS THE SUPERMARKET CHAIN SAID THE ACTION WOULD RESULT IN A CHARGE OF 28 MILLION TO 4 MILLION OR 25 CENTS TO 35 CENTS A SHARE IN ITS SECOND QUARTER ENDING JULY 31 IT SAID THE REDUCTIONS ARE PART OF AN ONGOING COSTCUTTING PROGRAM IN THE YEARAGO SECOND QUARTER PENN TRAFFIC HAD A LOSS OF 71 MILLION AFTER A CHARGE OR 92 CENTS A SHARE 9307220137 930722 WHO'S NEWS NATIONAL CONVENIENCE STORES INC NATIONAL CONVENIENCE STORES INC HOUSTON THIS CONVENIENCE STORE COMPANY NAMED THREE VICE PRESIDENTS THEY ARE BRUCE BREEDLOVE CONTROLLER BRIAN FONTANA TREASURER AND DAVID WISHARD MANAGER OF STORE OPERATIONS THEY WILL CONTINUE SERVING IN THEIR RESPECTIVE OFFICES AS VICE PRESIDENTS 9307220136 930722 WHO'S NEWS VENTURA COUNTY NATIONAL BANCORP VENTURA COUNTY NATIONAL BANCORP OXNARD CALIF RICHARD S CUPP 53 YEARS OLD A FORMER EXECUTIVE OF CALIFORNIA FEDERAL BANK AND FIRST INTERSTATE BANK WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER MR CUPP SUCCEEDS WILLIAM E MCALEER 54 WHO RESIGNED IN MAY CITING A CLASH WITH THE BOARD OVER THE COMPANY'S DIRECTION SUBJECT TO A REVIEW BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY MR CUPP ALSO WILL SERVE AS CHIEF EXECUTIVE OFFICER OF VENTURA COUNTY NATIONAL BANK ONE OF THE COMPANY'S TWO SUBSIDIARY BANKS 9307220135 930722 WHO'S NEWS FIRSTFEDERAL FINANCIAL SERVICES CORP FIRSTFEDERAL FINANCIAL SERVICES CORP WOOSTER OHIO L DWIGHT DOUCE 45 YEARS OLD VICE PRESIDENT SECRETARY AND TREASURER OF THIS THRIFT HOLDING COMPANY WAS PROMOTED TO EXECUTIVE VICE PRESIDENT HE WILL CONTINUE AS SECRETARY AND TREASURER 9307220134 930722 WHO'S NEWS IBP INC IBP INC DAKOTA CITY NEB WENDY LEE GRAMM WAS NAMED TO THE BOARD OF THIS MEATPACKER INCREASING THE NUMBER OF DIRECTORS TO SEVEN MS GRAMM IS A FORMER CHAIRWOMAN OF THE COMMODITY FUTURES TRADING COMMISSION AND HAS HELD A NUMBER OF OTHER GOVERNMENT POSTS 9307220133 930722 WHO'S NEWS SHERWINWILLIAMS CO SHERWINWILLIAMS CO CLEVELAND HELEN O PETRAUSKAS 49 YEARS OLD VICE PRESIDENT OF ENVIRONMENTAL AND SAFETY ENGINEERING AT FORD MOTOR CO WAS NAMED A NEW DIRECTOR OF THIS MAKER OF CHEMICALS AND COATINGS HER APPOINTMENT INCREASES THE SIZE OF THE COMPANY'S BOARD TO 12 MEMBERS FROM 11 9307220132 930722 WHO'S NEWS GREEN POINT SAVINGS BANK GREEN POINT SAVINGS BANK FLUSHING NY THE 62 BILLION THRIFT PLANNING TO GO PUBLIC NAMED THOMAS S JOHNSON FORMER PRESIDENT OF MANUFACTURERS HANOVER CORP ITS CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT EFFECTIVE AUG 1 MR JOHNSON 52 YEARS OLD LEFT MANUFACTURERS HANOVER IN 1991 BEFORE THAT HE SPENT 20 YEARS AT CHEMICAL BANK WHERE HE WAS PRESIDENT FROM 1983 TO 1989 HE WAS BRIEFLY PRESIDENT LAST YEAR OF OLYMPIA & YORK DEVELOPMENTS LTD FROM WHICH HE RESIGNED FOLLOWING A POLICY DISAGREEMENT 9307220131 930722 BUSINESS BRIEF SOUTHWESTERN BELL'S NET FELL GTE'S ROSE IN THE SECOND QUARTER SOUTHWESTERN BELL CORP'S SECONDQUARTER EARNINGS FELL 33 WHILE GTE CORP'S PROFIT ROSE 63 ALTHOUGH RESULTS FOR BOTH TELECOMMUNICATIONS COMPANIES WERE AFFECTED BY ONETIME CHARGES SOUTHWESTERN BELL SAID NET INCOME FELL TO 2944 MILLION OR 49 CENTS A SHARE COMPARED WITH 3045 MILLION OR 51 CENTS A SHARE IN THE YEAREARLIER QUARTER THE 1993 PERIOD INCLUDED A CHARGE OF 436 MILLION OR SEVEN CENTS A SHARE FOR REFINANCING 450 MILLION IN LONGTERM DEBT AT ITS SOUTHWESTERN BELL TELEPHONE CO UNIT EXCLUDING THE CHARGE EARNINGS ROSE 11 TO 338 MILLION OR 56 CENTS A SHARE GTE'S PROFIT ROSE TO 438 MILLION OR 46 CENTS A SHARE FROM 412 MILLION OR 45 CENTS DESPITE A ONETIME CHARGE OF 46 MILLION FOR A WORKFORCE REDUCTION PROGRAM ANNOUNCED EARLIER GTE EARNINGS ALSO WERE HURT BY LOWER GOVERNMENTCOMMUNICATIONS SALES AND COMPETITIVE PRICE REDUCTIONS ON ACCESS CHARGES FOR DOMESTIC LONGDISTANCE CARRIERS EXCLUDING THE CHARGE OPERATING PROFIT ROSE 7 TO 111 BILLION WITH INTEREST EXPENSES LOWER BY 10 REVENUE FELL 29 TO 492 BILLION FROM 506 BILLION ACCESS LINES ROSE 4 GTE SAID HOWEVER REVENUE FROM TELEPHONE OPERATIONS FELL TO 392 BILLION FROM ALMOST 4 BILLION REFLECTING LOWER MORE COMPETITIVE INTERSTATE ACCESS CHARGES TO LONGDISTANCE SERVICE PROVIDERS THE COMPANY SAID IT ADDED 98000 NEW CELLULAR CUSTOMERS IN THE QUARTER BRINGING ITS TOTAL CUSTOMERS TO ALMOST 13 MILLION OPERATING PROFIT FOR GTE'S TELECOMMUNICATIONS PRODUCTS AND SERVICES ROSE TO 87 MILLION FROM 57 MILLION BUT REVENUE DROPPED 8 TO 995 MILLION FROM 108 BILLION BECAUSE OF THE WINDDOWN OF A MAJOR GOVERNMENT CONTRACT UNDER WHICH GTE PROVIDED A MOBILE COMMUNICATIONS SYSTEM TO THE US ARMY SOUTHWESTERN BELL STOCK ROSE 25 CENTS OR 06 TO CLOSE AT 40375 WHILE GTE COMMON STOCK FELL 625 CENTS OR 17 TO 3625 BOTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9307220130 930722 KEARNS'S PATENT SUIT AGAINST GM ON WIPERS IS DISMISSED BY JUDGE DETROIT A FEDERAL JUDGE YESTERDAY THREW OUT A SUIT FILED BY INVENTOR ROBERT W KEARNS THAT SOUGHT MILLIONS OF DOLLARS IN BACK ROYALTIES FROM GENERAL MOTORS CORP FOR ALLEGEDLY COPYING HIS PATENTED INTERMITTENTWINDSHIELDWIPER SYSTEM US DISTRICT COURT JUDGE AVERN COHN SAID IN A BRIEF ORDER THAT HE DISMISSED DR KEARNS'S SUIT AGAINST GM BECAUSE THE MARYLAND INVENTOR WHO'S ACTING AS HIS OWN LAWYER FAILED TO ITEMIZE BY A JULY 6 DEADLINE WHICH OF MORE THAN 30 INFRINGEMENT CLAIMS HE WANTED TO TAKE TO TRIAL AT LEAST 32 MILLION GM VEHICLES WERE COVERED BY DR KEARNS'S INFRINGEMENT CLAIMS DR KEARNS SAID HE WILL APPEAL JUDGE COHN'S DECISION AND ADDED THAT HE MET THE COURT'S DEADLINES THE FACTS DON'T JUSTIFY ANY OF THIS HE SAID FOR DR KEARNS THIS WAS A SETBACK IN WHAT HAS BEEN A REMARKABLY SUCCESSFUL 15YEAR LEGAL BATTLE AGAINST DETROIT'S BIG THREE AND MANY OF THE WORLD'S OTHER MAJOR AUTO MAKERS IN A SERIES OF SUITS FILED SINCE 1978 DR KEARNS CHARGED THE AUTO MAKERS COPIED HIS DESIGN FOR AN ELECTRONICALLY CONTROLLED INTERMITTENTWINDSHIELDWIPER SYSTEM THAT HE FIRST DEVELOPED IN A BASEMENT WORKSHOP IN THE LATE 1960S IN JUNE 1992 A FEDERAL JURY IN DETROIT RULED THAT CHRYSLER CORP SHOULD PAY THE INVENTOR 113 MILLION PLUS INTEREST FOR INFRINGING HIS PATENTS BOTH CHRYSLER AND DR KEARNS HAVE APPEALED THE VERDICT ON DIFFERENT GROUNDS TO THE COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN NOVEMBER 1990 FORD MOTOR CO SETTLED WITH DR KEARNS FOR 102 MILLION AFTER A JURY HAD RULED AGAINST THE AUTO MAKER 9307220129 930722 AMR REPORTS ITS FIRST PROFIT SINCE FALL OF 91 SECONDPERIOD NET INCOME TOTALED 47 MILLION EXCEEDING EXPECTATIONS BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL AMR CORP SIGNALING A SLOW BUT DEFINITE IMPROVEMENT IN THE AIRLINE INDUSTRY POSTED A PROFIT FOR THE FIRST TIME SINCE THE FALL OF 1991 THE AMERICAN AIRLINES' PARENT POSTED SECONDQUARTER NET INCOME OF 47 MILLION OR 39 CENTS A SHARE AFTER ONETIME ITEMS THE PROFIT MODESTLY EXCEEDED ANALYSTS' EXPECTATIONS SENDING AMR STOCK UP 2125 OR 34 TO 6550 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LAST MONTH HOWEVER ANALYSTS HAD CUT THEIR ESTIMATES AFTER AMR SAID WEAK TRAFFIC WOULD RESULT IN SIGNIFICANTLY WORSE EARNINGS THAN PREVIOUSLY THOUGHT THE RESULTS SEEM TO REFLECT THE COSTCUTTING EFFORTS OF THE US'S LARGEST AIRLINE RATHER THAN AN OVERALL IMPROVEMENT IN ITS MARKETS IN FACT AMERICAN SAID IT EXPECTED TRAFFIC FOR JULY AND AUGUST TO BE LOWER THAN LAST YEAR IN THE SECOND QUARTER ITS LOAD FACTOR OR THE PERCENTAGE OF SEATS OCCUPIED BY PAYING PASSENGERS FELL TO 615 FROM 63 A YEAR AGO NEVERTHELESS AMERICAN'S IMPROVEMENT SEEMS TO BE LEADING A SLOW TAKEOFF TOWARD PROFITABILITY FOR THE AIRLINE INDUSTRY USAIR GROUP INC THE NATION'S FOURTHLARGEST CARRIER YESTERDAY REPORTED MARGINAL PROFIT FOR THE SECOND QUARTER COMPARED WITH A HUGE LOSS A YEAR EARLIER AMERICA WEST AIRLINES OPERATING UNDER CHAPTER 11 BANKRUPTCY PROTECTION RECORDED A SOLID PROFIT WHAT'S MORE HIGHER FARES THIS SUMMER AFTER THE PRICE WARS OF A YEAR AGO HAVE SOME ANALYSTS EXPECTING A SMALL SECONDQUARTER PROFIT OR AT LEAST BREAKEVEN RESULTS FROM UAL CORP'S UNITED AIRLINES AMR BASED IN FORT WORTH TEXAS SHOWED BIG IMPROVEMENT OVER 1992'S SECOND QUARTER WHEN THE COMPANY HAD A NET LOSS OF 183 MILLION OR 243 A SHARE THE YEAREARLIER RESULTS HAVE BEEN RESTATED TO REFLECT A CHANGE IN THE METHOD OF ACCOUNTING FOR RETIREE HEALTHCARE BENEFITS RESULTING IN A LOSS OF 17 MILLION THE YEAREARLIER RESULTS ALSO INCLUDED NONRECURRING CHARGES TOTALING 118 MILLION FROM THE ABORTED DEVELOPMENT OF A HOTEL AND CAR RESERVATION SYSTEM AND THE SETTLEMENT OF CERTAIN LITIGATION THE LATEST QUARTER'S RESULTS INCLUDED A CHARGE OF 79 MILLION OR 104 A SHARE FOR THE COST OF TAKING 31 OLDER AIRCRAFT OUT OF SERVICE THE PERIOD ALSO INCLUDED A GAIN OF 67 MILLION OR 88 CENTS A SHARE FROM A CHANGE IN THE AIRLINE'S ESTIMATE OF PASSENGER REVENUES EXCLUDING THE EXTRAORDINARY ITEMS AMR HAD EARNINGS OF 59 MILLION OR 55 CENTS A SHARE KEVIN MURPHY AN AIRLINES ANALYST AT MORGAN STANLEY & CO SAID THE EARNINGS CONTINUE TO REFLECT BLEAK CONDITIONS IN THE INDUSTRY WE HAD BEEN EXPECTING 28 CENTS A SHARE SO THE 39 CENTS IS BETTER THAN ANTICIPATED BUT IT'S STILL A DISAPPOINTING FIGURE THIS IS TRADITIONALLY THE INDUSTRY'S SECONDSTRONGEST QUARTER AND AMR'S EARNINGS SHOULD REALLY BE SIX TIMES THAT ROBERT CRANDALL AMR'S CHAIRMAN SAID WHILE WE ARE PLEASED TO BE REPORTING A SMALL PROFIT OUR NET MARGIN IS WHOLLY INADEQUATE HE ADDED ALTHOUGH OUR EFFORTS TO CONTROL COSTS ARE CONTINUING TO SHOW GOOD RESULTS AND YIELDS ARE UP A BIT REVENUES AND COSTS REMAIN CLEARLY OUT OF BALANCE ABSENT EITHER STRONGER LEVELS OF DEMAND OR HIGHER YIELDS PRESENT TRENDS WILL NOT RESULT IN SATISFACTORY EARNINGS AMR SAID IT'S SLIGHTLY AHEAD OF SCHEDULE WITH THE 8 BILLION COSTCUTTING PROGRAM ANNOUNCED IN THE FALL OF 1991 TO BE COMPLETED IN 1995 AMR SAID THE IMPROVED EARNINGS ALSO REFLECTED A PRODUCTIVITY INCREASE OF 10 AND HIGHER TICKET PRICES AMERICAN'S YIELD OR THE AMOUNT ONE PASSENGER PAYS TO FLY ONE MILE ROSE 108 IN THE SECOND QUARTER TO 1377 CENTS REVENUE ROSE 17 TO 421 BILLION FROM 359 BILLION FOR THE FIRST SIX MONTHS AMR POSTED NET INCOME OF 25 MILLION WHICH EQUALS A LOSS OF THREE CENTS A SHARE IN THE YEARAGO PERIOD THE COMPANY HAD A RESTATED NET LOSS OF 635 MILLION OR 854 A SHARE INCLUDING THE ACCOUNTING ADJUSTMENT FOR RETIREE BENEFITS AND THE NONRECURRING CHARGES REVENUE ROSE 13 TO 803 BILLION FROM 709 BILLION SEPARATELY USAIR GROUP ALSO CREDITED COSTCUTTING IN REPORTING MODEST SECONDPERIOD NET INCOME USAIR ARLINGTON VA HAD NET OF 58 MILLION EQUAL TO A LOSS OF 23 CENTS A SHARE AFTER PAYMENT OF PREFERRED DIVIDENDS COMPARED WITH A YEARAGO LOSS OF 1311 MILLION OR 307 A SHARE REVENUE ROSE 87 TO 182 BILLION FROM 17 BILLION USAIR GAINED 25 CENTS TO 16125 IN BIG BOARD COMPOSITE TRADING 9307220128 930722 MARKETING & MEDIA CYPRESS CAPITAL BUYS 49 OF COMMON STOCK OF WELSH PUBLISHING NEW YORK CYPRESS CAPITAL PARTNERS I LP RUN BY CABLE INDUSTRY VETERAN JAMES HOAK JR ACQUIRED A 49 STAKE IN WELSH PUBLISHING GROUP INC AND WILL FUND ITS ATTEMPTS TO ACQUIRE OTHER PUBLISHERS AND START MAGAZINE PROPERTIES CYPRESS AN AFFILIATE OF DALLASBASED CYPRESS CAPITAL CORP IS MAKING ITS FIRST FORAY INTO MEDIA PAYING CASH FOR 49 OF THE COMMON STOCK OF WELSH PUBLISHING A PUBLISHER OF MAGAZINES FOR CHILDREN AND TEENAGE READERS TERMS WEREN'T DISCLOSED DONALD E WELSH FOUNDER AND PRESIDENT OF THE CLOSELY HELD WELSH RETAINS 51 OF THE COMPANY AND WILL CONTINUE TO RUN ITS DAYTODAY OPERATIONS WELSH PUBLISHING HAS CREATED A STRING OF SUCCESSFUL MAGAZINES BASED ON CHARACTERS LICENSED FROM TELEVISION SHOWS MOVIES OR TOY PROPERTIES WELSH TITLES INCLUDE MICKEY MOUSE SIMPSONS ILLUSTRATED BUGS BUNNY PRESENTS LOONEY TUNES AND SUPERMAN & BATMAN A MAGAZINE DRAWN FROM THE COMIC BOOK HEROES WELSH IS VENTURING INTO NEW TERRITORY THIS FALL WITH PUBLICATION OF QUAKE AN ENTERTAINMENT AND STYLE MAGAZINE THAT TARGETS 16YEAROLD GIRLS BUT WITH NO AFFILIATION WITH A LICENSED CHARACTER WELSH HAD ANNUAL REVENUE OF 50 MILLION IN 1992 MR WELSH STARTED BY ENTICING THE LATE PUPPETEER JIM HENSON INTO DOING THE MUPPETS MAGAZINE IN 1982 LATER FOLDING IT INTO THE CHILDREN'S PUBLISHING UNIT OF TELEPICTURES CORP THAT COMPANY LATER MERGED WITH LORIMAR CO IN 1987 WITH LORIMARTELEPICTURES IN THE MIDST OF RESTRUCTURING BEFORE ITS ACQUISITION BY WARNER COMMUNICATIONS INC MR WELSH ACQUIRED THE UNIT AND BECAME ITS SOLE OWNER WELSH HAS BEEN ABLE TO RIDE OUT THE INDUSTRY'S DIFFICULT ADVERTISING DECLINES BECAUSE IT RELIES HEAVILY ON CIRCULATION REVENUE STEPHEN P SMILEY PRESIDENT OF CYPRESS CAPITAL PARTNERS SAID CYPRESS HAD BEEN LOOKING TO INVEST IN PUBLISHING COMPANIES FOR TWO YEARS BUT SETTLED ON WELSH BECAUSE OF ITS TRACK RECORD OF CREATING MAGAZINES FROM LICENSED CHARACTERS 9307220127 930721 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 9307220126 930722 COLGATEPALMOLIVE PROFIT ROSE ON DROP IN SALES IN 2ND PERIOD NEW YORK COLGATEPALMOLIVE CO'S PROFIT ROSE 14 IN THE SECOND QUARTER AS COSTCUTTING OFFSET A SLIGHT DROP IN SALES THE GLOBAL CONSUMER PRODUCTS COMPANY SAID NET INCOME ROSE TO 1424 MILLION OR 86 CENTS A SHARE FROM 1244 MILLION OR 75 CENTS A SHARE A YEAR EARLIER COLGATE'S SALES FELL 1 TO 178 BILLION BECAUSE OF UNFAVORABLE CURRENCY TRANSLATIONS EXCLUDING THE NEGATIVE EFFECTS OF CURRENCY EXCHANGES SALES INCREASED 2 UNIT SHIPMENTS WERE BASICALLY LEVEL WITH LAST YEAR COLGATEUSA SALES WERE DOWN 4 AND 6 IN UNITS AND DOLLARS RESPECTIVELY BUT THE COMPANY SAID VOLUME IMPROVED MARKEDLY NEAR THE END OF THE QUARTER INVESTOR CONCERN THAT PROCTER & GAMBLE CO WILL INCREASE MARKETING ACTIVITY IN COLGATE'S TRADITIONAL STRONGHOLDS SUCH AS LATIN AMERICA PUSHED COLGATE STOCK DOWN YESTERDAY IN AFTERNOON TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK WAS QUOTED AT 5075 DOWN 250 ALSO PROCTER'S DECISION TO SLASH PRICES LAST WEEK HAS MADE INVESTORS SKITTISH ABOUT CONSUMER PRODUCT STOCKS COLGATE SAID IT ACHIEVED HEALTHY SALES INCREASES IN LATIN AMERICA ASIA EASTERN EUROPE AND IN THE WORLDWIDE HILL'S PET NUTRITION BUSINESS THE COMPANY SAID SALES ADVANCES IN THE DEVELOPING WORLD HELPED OFFSET DECREASES IN MATURE ECONOMIES THE COMPANY SAID IT CONTINUES TO RESTRUCTURE ITS EUROPEAN OPERATIONS AND LOWER ITS COST OF DOING BUSINESS 9307220125 930722 WHO'S NEWS NEAFSEY RESIGNS POSTS OF PRESIDENT AND CEO AT GREENWICH CAPITAL GREENWICH CONN GREENWICH CAPITAL MARKETS INC SAID JOHN P NEAFSEY RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE IMMEDIATELY TO PURSUE OTHER INTERESTS THE INVESTMENT BANKING COMPANY A PRIMARY DEALER IN US TREASURY BONDS SAID EXECUTIVE VICE PRESIDENTS GARY F HOLLOWAY 42 YEARS OLD AND KONRAD R KRUGER 41 WILL BECOME COPRESIDENT AND COCHIEF EXECUTIVE OFFICERS IN A STATEMENT MR NEAFSEY 53 SAID HE HAD ACCOMPLISHED HIS GOALS SINCE JOINING THE COMPANY IN 1990 GREENWICH CAPITAL MARKETS A UNIT OF LONGTERM CREDIT BANK OF JAPAN LTD SAID IT ACHIEVED RECORD EARNINGS IN EACH OF THE PAST THREE YEARS BUT WOULDN'T OUTLINE ITS EARNINGS OR REVENUE FIGURES THE COMPANY SAID MR NEAFSEY HAS NO IMMEDIATE BUSINESS PLANS MR NEAFSEY COULDN'T BE REACHED FOR COMMENT 9307220124 930722 LOSS AT NORTHERN TELECOM TOTALS 103 BILLION DEFICIT FOR 2ND PERIOD TOPS FORECASTS LAYOFFS SET ALCATEL TO BUY STC UNIT BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL BESET BY SOFTWARE PROBLEMS IN ITS CORE SWITCHING EQUIPMENT BUSINESS NORTHERN TELECOM LTD POSTED AN UNEXPECTEDLY LARGE 103 BILLION LOSS FOR THE SECOND QUARTER AND REVERSED EARLIER PROJECTIONS THAT IT WOULD MAKE MONEY THIS YEAR THE LOSS WHICH NORTHERN HAD TELEGRAPHED A FEW WEEKS AGO BUT WHICH WAS LARGER THAN ANALYSTS HAD EXPECTED CAME MOSTLY FROM DRASTIC RESTRUCTURING MEASURES AIMED AT REPAIRING ITS BUSINESS TO PAY FOR THESE NORTHERN TOOK A 940 MILLION CHARGE AGAINST EARNINGS AND SAID IT WOULD LAY OFF 9 OF ITS WORK FORCE OR 5200 EMPLOYEES NORTHERN SAID THAT BECAUSE OF THE CHARGES WE NOW EXPECT A LOSS FOR FULL YEAR 1993 IN ADDITION NORTHERN AGREED TO SELL ITS BRITISH STC SUBMARINE SYSTEMS UNIT TO FRANCE'S ALCATELALSTHOM SA FOR 600 MILLION 9066 MILLION RANKED FIRST IN TELECOMMUNICATIONS EQUIPMENT ALCATEL WILL NOW BECOME THE WORLD'S LARGEST SUPPLIER OF UNDERSEA FIBEROPTIC TELECOMMUNICATIONS EQUIPMENT JUST SURPASSING AMERICAN TELEPHONE & TELEGRAPH CO NORTHERN'S SECONDQUARTER LOSS AMOUNTED TO 413 A SHARE A YEAR EARLIER THE COMPANY EARNED 723 MILLION OR 28 CENTS A SHARE REVENUE FELL 41 TO 187 BILLION FROM 195 BILLION NORTHERN BASED IN MISSISSAUGA ONTARIO REPORTED ITS RESULTS IN US DOLLARS NORTHERN'S SHARES FELL 1625 OR 66 TO CLOSE AT 22875 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WHILE ALCATEL'S AMERICAN DEPOSITARY RECEIPTS CLOSED AT 22375 UNCHANGED IN BIG BOARD TRADING TERMING THE QUARTER DISASTROUS JEAN MONTY NORTHERN'S NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID NORTHERN WOULD SHUT SOME FACILITIES LAY OFF 9 OF NORTHERN'S 60000 WORKERS AND REVAMP SOFTWARE OPERATIONS NORTHERN'S CHARGE INCLUDES 500 MILLION IN GOODWILL FROM STC 282 MILLION FOR WORKFORCE SEVERANCE AND FACILITY CONSOLIDATIONS AND 158 MILLION FOR THE SOFTWARE RETOOLING MR MONTY SAID NORTHERN EXPECTS TO BE PROFITABLE AGAIN BY THE FOURTH QUARTER WITH OPERATING EARNINGS POSITIVE FOR THE YEAR HE DECLINED TO PROJECT NORTHERN'S THIRDQUARTER PERFORMANCE BUT HE DIDN'T GLOSS OVER THE SCOPE OF NORTHERN'S CHALLENGE WE HAVE TO ADJUST OUR COST STRUCTURE TO ADAPT TO A MORE COMPETITIVE ENVIRONMENT HE SAID FLATLY NORTHERN IS OUTGUNNED BY THE BETTERFINANCED AND EQUIPPED AT&T IN ITS SWITCH BUSINESS AND IT IS WOEFULLY BEHIND SAVVIER RIVALS SUCH AS SWEDEN'S LM ERICSSON IN WIRELESS SYSTEMS A MARKETING JOINT VENTURE WITH MOTOROLA INC IN CELLULAR PHONE SYSTEMS HAS FAILED TO GENERATE BIG GAINS IN THE CELLULAR MARKET AGAINST EITHER AT&T OR ERICSSON BUT NORTHERN'S BIGGEST PROBLEM MAY BE ITS SOFTWARE MESS AS PHONESERVICE FEATURES SUCH AS CALL WAITING BECOME MORE COMPLEX NORTHERN MUST RECODE THE SOFTWARE IN ITS COMPUTERIZED DMS LINE OF SWITCHING SYSTEMS TO HANDLE THESE NEW FUNCTIONS A CUMBERSOME SOFTWARE ARCHITECTURE SAID ANALYSTS HAS LEFT NORTHERN UNABLE TO DELIVER UPGRADES TO PHONE COMPANIES IN A TIMELY FASHION NORTHERN'S PROBLEM IS FUNDAMENTAL SAID MARIA LEWIS AN ANALYST AT COWEN & CO MR MONTY ACKNOWLEDGED THAT NORTHERN HASN'T BEEN ABLE TO DEVELOP FEATURES AT THE SAME VELOCITY WE HAD BEFORE BUT HE VOWED TO FIX THAT HE SAID NORTHERN'S PLANNED 158 MILLION INVESTMENT IN NEW SOFTWAREPRODUCTION TECHNIQUES WILL SHRINK THE TIME IT TAKES TO SHIP AN UPGRADE TO THREE MONTHS FROM THE CURRENT 12 TO 18 MONTHS WE WANT TO BE IN THE BESTOFCLASS POSITION WHERE NORTHERN WAS A COUPLE OF YEARS AGO HE SAID AT THE SAME TIME HE SAID NORTHERN WILL SHRINK ITSELF TO CONTEND WITH A DECLINE IN SWITCH ORDERS IN THE US AND CANADA AND INDUSTRY PRICING HALVED FROM TWO YEARS AGO AS PART OF THIS EFFORT HE SAID NORTHERN WILL CONSOLIDATE ITS US AND CANADIAN OPERATIONS EACH CUTTING ABOUT 2000 JOBS AND NORTHERN TELECOM EUROPE ANOTHER 1000 ASIA PACIFIC OPERATIONS NORTHERN'S ASIA PACIFIC OPERATIONS HOWEVER WILL BE SPARED THE BLOODLETTING THE COMPANY'S SWITCHING AND TRANSMISSION SYSTEMS BUSINESS THERE IS DOING BETTER THAN EXPECTED IN SALES AND EARNINGS MR MONTY SAID DECLINING TO GIVE NUMBERS AND LATIN AMERICA IS GOING WELL ALTHOUGH NOT BEYOND EXPECTATIONS HE ADDED WHILE NORTHERN IS TALKING RETRENCHMENT ALCATEL IS ON A TEAR A STRING OF GLOBAL ACQUISITIONS IN THE LAST SIX YEARS MOVED IT INTO FIRST PLACE WORLDWIDE IN SWITCHING AND LANDBASED TELEPHONE CABLES NOW NORTHERN'S STC WILL GIVE ALCATEL AN EDGE OVER AT&T IN AN UNGLAMOROUS BUT FASTGROWING SEGMENT OF THE WORLD TELECOMMUNICATIONS MARKET AND ONE SET FOR EVEN FASTER GROWTH THANKS TO A PROJECTED 15 ANNUAL RISE THIS DECADE IN INTERNATIONAL LONGDISTANCE CALLING BESIDES INCREASING MARKET SHARE THE ACQUISITION OF STC SUBMARINE SHOULD GRADUALLY INCREASE ALCATEL'S CABLE PROFIT MARGINS SAID ALCATEL'S CHAIRMAN AND CHIEF EXECUTIVE PIERRE SUARD THE DEVELOPMENT OF THE TECHNOLOGY IS VERY FAST BOOSTING RESEARCH EXPENSES HE SAID WHAT WE ARE EXPECTING FROM THIS ACQUISITION IS A VERY LARGE SYNERGY FOR R&D EXPENSES FOR THE SIX MONTHS NORTHERN POSTED A LOSS OF 9508 MILLION OR 383 A SHARE COMPARED WITH A 1765 MILLION PROFIT OR 69 CENTS A SHARE A YEAR EARLIER REVENUE WAS ALMOST FLAT AT 381 BILLION COMPARED WITH 385 BILLION RICHARD L HUDSON CONTRIBUTED TO THIS ARTICLE