UNITED DOMINION INDUSTRIES LTD SAID IT AGREED TO ACQUIRE MARLEY CO FROM AFFILIATES OF KOHLBERG KRAVIS ROBERTS & CO AND MARLEY'S MANAGEMENT FOR 207 MILLION UNITED DOMINION A CHARLOTTE NC INDUSTRIAL PRODUCTS CONSTRUCTION AND ENGINEERING CONCERN ALSO WILL ASSUME MARLEY'S DEBT OF 133 MILLION MARLEY IS A KANSAS CITY MO MAKER OF EQUIPMENT FOR HEATING FLUID HANDLING AND HEAT EXCHANGE APPLICATIONS WITH 1992 SALES OF 457 MILLION AND AN OPERATING PROFIT OF 449 MILLION CANADIAN PACIFIC LTD A MONTREAL HOLDING COMPANY OWNS ABOUT 45 OF UNITED DOMINION'S SHARES WE'RE NOT BUYING IT CHEAP WILLIAM HOLLAND CHAIRMAN AND CHIEF EXECUTIVE OF UNITED DOMINION ADMITTED TO ANALYSTS IN TORONTO YESTERDAY BUT HE SAID VERY SUBSTANTIAL CASH FLOW EXPECTED FROM MARLEY WILL BE USED TO PARE UNITED DOMINION'S NET DEBT WHICH WILL CLIMB 295 MILLION TO ABOUT 491 MILLION AFTER THE TRANSACTION UNITED DOMINION PLANS TO RAISE BETWEEN 100 MILLION AND 150 MILLION IN LONGTERM DEBT THIS YEAR TO REFINANCE ITS DEBT MR HOLLAND ALSO SAID UNITED DOMINION WILL ELIMINATE MARLEY'S 8 MILLION IN CORPORATE OVERHEAD UNITED DOMINION HAD SAID PREVIOUSLY IT WANTED TO BEEF UP ITS INDUSTRIAL PRODUCTS GROUP WHICH WILL COMPRISE ABOUT 40 OF REVENUE AFTER THE ACQUISITION IS CLOSED NEXT MONTH SUBJECT TO REGULATORY APPROVALS THE COMPANY HAD REVENUE OF 17 BILLION IN 1992 STEVE LACIAK AN ANALYST WITH FIRST MARATHON SECURITIES LTD IN TORONTO DESCRIBED THE ACQUISITION AS POSITIVE FOR UNITED DOMINION WHILE THE EXTRA DEBT IS A CONCERN I THINK THAT THEY CAN IMPROVE THEIR BALANCE SHEET WITH EXPECTED CASH FLOW HE SAID UNITED DOMINION SHARES CLOSED YESTERDAY AT 12875 A SHARE UP 50 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9307220122 930722 FORGET HEMP BUT MAKE THEM TELL WHO HAS THE PACKAGE OF POT NOW BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON MAY HAVE GOTTEN OFF TO A ROCKY START IN SOME WAYS BUT YOU CAN'T KNOCK HIS COURTESY WHEN RON KICZENSKI OF PASO ROBLES CALIF SENT A PACKAGE THAT HE SAYS CONTAINED A QUARTERPOUND OF MARIJUANA TO MR CLINTON THE PRESIDENT WAS KIND ENOUGH TO REPLY WITH A THANKYOU NOTE THANKS SO MUCH FOR WRITING THE FORM LETTER SAID I WELCOME YOUR THOUGHTS AND PROMISE THEY WILL BE CAREFULLY CONSIDERED I APPRECIATE YOUR TAKING THE TIME TO LET ME KNOW HOW YOU FEEL MR KICZENSKI 29 YEARS OLD SAYS HE SENT THE DOPE TO THE WHITE HOUSE BUT NOT BECAUSE HE FELT IT WAS FINALLY TIME FOR MR CLINTON TO INHALE THOUGH HE ADMITS TO TAKING A TOKE OR TWO TO RELAX SMOKING MARIJUANA HE SAYS IS ABOUT THE LAST THING IT'S GOOD FOR HE SAYS HE WANTS THE DRUG LEGALIZED NOT FOR RECREATIONAL PURPOSES BUT FOR THE ECONOMIC VALUE OF HEMP THE PLANT FROM WHICH MARIJUANA IS CULTIVATED USING HEMP WOULD HELP SAVE OTHER PRECIOUS NATURAL RESOURCES HE ARGUES HEMP CAN BE USED TO MAKE A VARIETY OF PRODUCTS HE ADDS THAT NOW COME FROM TIMBER AND PETROLEUM BYPRODUCTS TO MAKE HIS POINT HE SENT THE MARIJUANA WRAPPED IN CLOTH MADE FROM HEMP AND THE ACCOMPANYING LETTER WAS WRITTEN ON PAPER MADE FROM HEMP THE WHITE HOUSE DECLINED TO RESPOND TO PRESS INQUIRIES ABOUT THE MARIJUANA MAIL BUT MR KICZENKSI SAYS THAT IN TAPERECORDED TELEPHONE CONVERSATIONS HE MADE WITH WHITE HOUSE EMPLOYEES THEY ACKNOWLEDGE RECEIPT OF THE POT PACKAGE MR KICZENSKI WHO WANTS TO BE ARRESTED FOR MAILING MARIJUANA TO THE PRESIDENT HOPES AN ARREST WILL GENERATE THE PUBLICITY HE CRAVES FOR HIS CAUSE HE HAS SPOKEN WITH THE SECRET SERVICE AND DRUG ENFORCEMENT ADMINISTRATION AGENTS BUT SO FAR THEY SEEM TO HAVE MORE IMPORTANT THINGS TO DO HE DID GET A NICE LETTER FROM MARY LEE WARREN CHIEF OF THE JUSTICE DEPARTMENT'S NARCOTIC AND DANGEROUSDRUG SECTION THANKING HIM FOR HIS PHONE CALL INFORMING US OF YOUR SHIPMENT OF MARIJUANA TO PRESIDENT CLINTON AT THE WHITE HOUSE MS WARREN REFERRED THE CASE TO THE DEA HE ALSO GOT A LETTER FROM THE CHIEF OF THE FOREST SERVICE WHO RESPONDED TO THE ADVOCACY OF HEMP BYPRODUCTS BY NOTING OTHER SOLUTIONS TO SAVE TREES HE ALSO REMINDED MR KICZENSKI THAT THE CULTIVATION OF HEMP IS NO LONGER LEGAL 9307220121 930722 YIELDS FELL SLIGHTLY ON TAXABLE FUNDS IN THE LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEY FUNDS SLIPPED FRACTIONALLY IN THE LATEST WEEK WHILE TAXFREE YIELDS JUMPED IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 266 FROM 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXEXEMPT FUNDS ROSE TO 173 FROM A RECORD LOW 159 THE WEEK BEFORE THE NEWSLETTER SAID THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 240 FOR AN INVESTOR IN THE 28 TAX BRACKET AND 251 FOR SOMEONE PAYING 31 IN TAXES YIELDS ON TAXFREE FUNDS FLUCTUATE MORE WIDELY THAN TAXABLE YIELDS BECAUSE OF VARIATIONS IN SUPPLY AND DEMAND ASSETS OF 606 TAXABLE FUNDS GREW BY 245 BILLION IN THE LATEST WEEK TO 47951 BILLION SLIGHTLY MORE THAN HALF OF THE INFLOW 128 BILLION WENT INTO FUNDS OPEN ONLY TO INSTITUTIONAL INVESTORS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM INTEREST RATES TO RISE ANY TIME SOON ASSETS OF 325 TAXFREE FUNDS DROPPED BY 6795 MILLION TO 10201 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY LENGTHENED BY TWO DAYS TO 65 DAYS 9307220120 930722 BIG BOARD SEAT SELLS FOR 725000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 725000 UNCHANGED FROM THE PREVIOUS SALE JULY 15 SEATS ARE CURRENTLY QUOTED AT 650000 BID AND 850000 OFFERED 9307220119 930722 AFTER ATTALI LET REFORMIST POLE LEAD EUROPE BANK BY RADEK SIKORSKI POLAND HAS PROPOSED LESZEK BALCEROWICZ THE FATHER OF POLAND'S BIG BANG ECONOMIC REFORM AS A CANDIDATE FOR THE PRESIDENCY OF THE EMBATTLED EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT MR BALCEROWICZ WOULD HAVE THE JOB OF RESTORING THE BANK'S TATTERED REPUTATION AND FOCUSING ITS ATTENTION ON THE REAL PRIORITIES IN EASTERN EUROPE HIS APPOINTMENT WOULD SIGNAL THE WEST'S APPRECIATION FOR THE HEROIC EFFORTS EAST EUROPEANS HAVE MADE IN TRANSFORMING THEIR ECONOMIES THE EBRD'S REPUTATION IN THE EAST HAS BEEN RECEIVED IN THE WEST AS SOMETHING OF A SHOCK BY COMPARISON WITH OTHER SUCH INSTITUTIONS THE EBRD UNDER JACQUES ATTALI WAS REGARDED IN EASTERN EUROPE AS A FRIEND HIS LAVISH STYLE APART HE DID A GOOD JOB AT ADVOCATING THE LOOSENING OF TRADE BARRIERS AND THE WIDENING OF THE EUROPEAN COMMUNITY EVEN WHEN THIS WENT AGAINST THE GRAIN OF WESTERN POLICY IN GENERAL AND HIS NATIVE FRANCE IN PARTICULAR APPOINTING AS HIS SUCCESSOR AN EAST EUROPEAN REFORMER SUCH AS MR BALCEROWICZ WOULD DAMPEN THE BANK'S REPUTATION FOR HIGH LIVING AND BUILD ON ITS STRENGTH AS EASTERN EUROPE'S ADVOCATE ABOVE ALL THIS IS AN OPPORTUNITY TO GIVE THE JOB TO A UNIQUELY QUALIFIED MAN IT WILL TAKE A WESTERN CANDIDATE YEARS TO LEARN WHAT MR BALCEROWICZ ALREADY KNOWS FIRSTHAND ABOUT REFORMING THE EAST WHEN TADEUSZ MAZOWIECKI POLAND'S FIRST POSTCOMMUNIST PRIME MINISTER OFFERED MR BALCEROWICZ THE POST OF FINANCE MINISTER IN LATE 1989 HE ASKED HIM TO BE HIS ERHARD AS IN LUDWIG ERHARD FATHER OF THE GERMAN ECONOMIC MIRACLE IN THE 1950S DID MR BALCEROWICZ MEET THIS CHALLENGE DID HIS CAVALRYCHARGE APPROACH WORK WHEN MR BALCEROWICZ ARRIVED IN THE GOVERNMENT POLISH INFLATION WAS RUNNING AT 40 A MONTH SHOPS WERE EMPTY THE ZLOTY WAS WORTHLESS AND THE ENTIRE ECONOMY WAS OWNED BY THE STATE POLAND'S DEBT BOTH EXTERNAL AND INTERNAL HAD BEEN UNSERVICED FOR YEARS THERE WAS NO STOCK MARKET NO INCOME TAX AND NO PROPER CENTRAL BANK THE BUDGET DEFICIT WAS OUT OF CONTROL ON TOP OF THESE APPALLING CONDITIONS THE BALCEROWICZ TEAM FACED THREE EXTERNAL SHOCKS THE COLLAPSE OF THE SOVIET MARKET THE COLLAPSE OF THE EAST GERMAN MARKET AND THE SURGE OF OIL PRICES IN THE WAKE OF BOTH THE DISSOLUTION OF COMECON AND THE GULF WAR THERAPY PROCEEDED IN TWO STAGES HYPERINFLATION WAS BROUGHT UNDER CONTROL BY MEANS OF INTEREST RATES THAT WERE BRIEFLY AT 45 A MONTH SUBSIDIES WERE CUT DRASTICALLY AND A SPECIAL TAX ON WAGE RISES WAS INTRODUCED THE ZLOTY WAS DEVALUED AND MADE INTERNALLY CONVERTIBLE RETAIL TRADE AND SERVICES WERE PRIVATIZED THROUGH MASS AUCTIONS OF SHOP SPACE TARIFFS WERE CUT AND HUNDREDS OF OBSTACLES TO ENTERPRISE WERE DISMANTLED IN A STROKE WITHIN WEEKS POLISH SHOPS FILLED UP WITH BOTH DOMESTIC AND FOREIGN PRODUCE FOR THE FIRST TIME IN DECADES AT THE SAME TIME PRODUCTION FELL RAPIDLY INCOMES DROPPED AND UNEMPLOYMENT APPEARED FOR THE FIRST TIME IN THE SECOND STAGE THE MARKET TRANSFORMATION WAS TO HAVE GONE DEEPER ALMOST NORMAL BANKING A STOCK MARKET AND FISCAL INSTITUTIONS IN FACT APPEARED COMPETITION WAS INJECTED INTO MANY AREAS BY SMASHING UP MONOPOLIES FURTHER HEALTH INSURANCE AND PENSIONS WERE TO BE PRIVATIZED AND DINOSAUR STATE COMPANIES SOLD OFF OR LIQUIDATED IT WAS DURING THIS PHASE THAT POLAND GOT STUCK BUT MR BALCEROWICZ'S VISION WAS ALWAYS SOUNDLY PROMARKET HE NEVER MUSED ABOUT THIRD WAYS TODAY POLAND IS STILL A POOR COUNTRY BUT IT IS NO LONGER AN ABNORMAL ONE WHILE IT STILL HAS SEVERE PROBLEMS THEY LOOK LESS AND LESS INSURMOUNTABLE INFLATION REMAINS TOO HIGH BUT THE RECESSION HAS LEVELED OFF AND POLAND IS NOW THE FIRST CENTRAL EUROPEAN COUNTRY REGISTERING ECONOMIC GROWTH BUDGETARY STRAINS ARE SERIOUS BUT COMPARABLE TO ITALY'S UNEMPLOYMENT IS STILL RISING BUT AT JUST ABOVE 10 IT IS SIMILAR TO FRANCE'S THE TRADE DEFICIT REMAINS MANAGEABLE INCOMES ARE INCHING UPWARD AND THE ZLOTY IS RELATIVELY FIRM MOREOVER POLAND'S 41 DROP IN PRODUCTION BETWEEN 1989 AND SPRING 1992 WHICH HAS ALWAYS BEEN CITED AS PRIME EVIDENCE OF THE PROGRAM'S FAILURE COMPARES RATHER WELL WITH THE FORMER CZECHOSLOVAKIA'S DROP OF 46 AND HUNGARY'S 40 DROP ABOVE ALL AS UKRAINE AND RUSSIA SHOW WE NOW KNOW BEYOND A DOUBT THAT THE COSTS OF STALLING ARE EVEN GREATER MACROECONOMIC STABILIZATION HAS BROUGHT TANGIBLE RESULTS INSTEAD OF TRADING IN THE STREET MARKETS OF WEST BERLIN VACATIONING POLES SWAMP VENICE AND ATHENS RUSSIANS AND UKRAINIANS WHO NOW FLOCK INTO POLAND TO WORK CALL IT ALMOST AMERICA CELLULAR PHONES HAVE FINALLY ARRIVED AND EVERY MONTH A NEW OFFICE BLOCK RISES IN WARSAW PERHAPS THE ONE INDICATOR THAT MR BALCEROWICZ SHOULD BE MOST PROUD OF IS THAT TODAY AFTER ONLY 3 1/2 YEARS SINCE HIS ZERO HOUR THE MAJORITY OF POLES HAVE JOBS IN THE PRIVATE SECTOR INDEED WHEN A REFORMIST PRIME MINISTER IN THE EAST ASKS A PRECOCIOUS ECONOMIST TO BE HIS FINANCE MINISTER HE IS LIKELY TO ASK THE MAN NOT TO BE HIS ERHARD BUT TO BE HIS BALCEROWICZ THE FACT THAT MR BALCEROWICZ IS PROBABLY THE BEST MAN FOR THE JOB AT THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT HOWEVER DOES NOT MEAN THAT HIS CHANCES OF BEING APPOINTED ARE HIGH THE APPOINTMENT IS TO BE MADE BY THE EBRD'S WESTERN SPONSORS EASTERN EUROPE'S WISHES ARE UNLIKELY TO BE CONSIDERED BUT NEITHER DOES IT HAVE TO BE DECIDED THROUGH A FRANCOGERMAN BACKROOM DEAL THOUGH BELIED BY ITS NAME THE BANK'S BIGGEST SHAREHOLDERS ARE THE US AND JAPAN MR SIKORSKI A LONDON WRITER IS POLAND'S FORMER DEPUTY MINISTER OF DEFENSE 9307220118 930722 LAW GINSBURG INDICATES A FRIENDLY POSTURE ON AGGRESSIVE POLICY AGAINST SEX BIAS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SUPREME COURT NOMINEE RUTH BADER GINSBURG SUGGESTED THAT SHE WOULD BE RECEPTIVE TO ARGUMENTS THAT THE HIGH COURT SHOULD BE MORE AGGRESSIVE IN ROOTING OUT SEX DISCRIMINATION JUDGE GINSBURG WAS PRESSED DURING HER SECOND DAY OF CONFIRMATION HEARINGS AS TO WHETHER THE SUPREME COURT SHOULD LOOK MORE SKEPTICALLY AT LAWS OR OFFICIAL PRACTICES THAT DIFFERENTIATE BASED ON SEX THE CAUTIOUS NOMINEE DECLINED TO ANSWER DIRECTLY BUT SHE URGED MEMBERS OF THE SENATE JUDICIARY COMMITTEE TO REVIEW PAST WRITINGS AND BRIEFS IN WHICH SHE ARGUED THAT THE SUPREME COURT SHOULD EMPLOY ITS TOUGHEST TYPE OF SCRUTINY WHEN REVIEWING SUCH ALLEGEDLY UNCONSTITUTIONAL DENIALS OF EQUAL PROTECTION BASED ON SEX THE TOUGHEST STANDARD SOCALLED STRICT SCRUTINY IS USED IN CASES INVOLVING CLASSIFICATIONS BASED ON RACE BUT THE HIGH COURT HAS DECLINED TO USE IT IN SEXDISCRIMINATION CASES JUDGE GINSBURG HOWEVER STRESSED THAT THE JUSTICES HAVEN'T RULED OUT DOING SO IN THE FUTURE FOR HER PART THE NOMINEE SAID SHE WAS DUBIOUS OF ANY LAW THAT MAKES DISTINCTIONS BASED ON SEX EVEN THOSE THAT ARE DEFENDED AS BENEFITING WOMEN JUDGE GINSBURG'S VIEW COULD COME INTO PLAY IN POTENTIAL DISPUTES OVER WORKPLACE POLICIES THAT FAVOR OR DISFAVOR WOMEN AS WELL AS CONTROVERSIES OVER RESTRICTIONS ON ABORTION THE ATMOSPHERE IN THE SENATE HEARING ROOM REMAINED FRIENDLY EVEN CASUAL AS MEMBERS OF THE COMMITTEE SAID JUDGE GINSBURG IS ALL BUT CERTAIN TO BE APPROVED OVERWHELMINGLY THE NOMINEE A MEMBER OF THE FEDERAL APPEALS COURT HERE WOULD BE ONLY THE SECOND WOMAN TO JOIN THE SUPREME COURT AND THE FIRST JUSTICE IN A QUARTERCENTURY APPOINTED BY A DEMOCRAT JUDGE GINSBURG POLITELY PERSISTED IN HER REFUSAL TO ANSWER QUESTIONS ON MANY CONTENTIOUS LEGAL ISSUES SHE ALSO DIDN'T WAVER IN HER INSISTENCE THAT SHE WOULDN'T READ HER OWN VALUES INTO THE CONSTITUTION DESPITE HER PIONEERING ADVOCACY FOR WOMEN'S RIGHTS IN THE 1970S THE NOMINEE VOWED THAT SHE WOULD MAINTAIN THE PAINSTAKING CASEBYCASE APPROACH SHE HAS USED ON THE APPEALS COURT SEVERAL SENATORS EXPRESSED CONFUSION OVER HOW THE NOMINEE WOULD BALANCE HER MODERATE JUDICIAL METHOD WITH HER STRONG VIEWS ON SEX DISCRIMINATION BUT THE COMMITTEE MEMBERS DIDN'T FORCE JUDGE GINSBURG TO GRAPPLE WITH THE QUESTION IN DETAIL ON OTHER MATTERS THE NOMINEE HAD THIS TO SAY THE SUPREME COURT SHOULD FORCE MAJOR SOCIAL CHANGES IN ONLY RARE CIRCUMSTANCES WHEN POLITICAL AVENUES BECOME DEADEND STREETS FOR GROUPS THAT ARE BEING DENIED THEIR CONSTITUTIONAL RIGHTS SHE OFFERED AS EXAMPLES THE HIGH COURT'S LANDMARK DECISIONS ON SCHOOL DESEGREGATION AND VOTING RIGHTS FOR BLACKS WHO HAD EFFECTIVELY BEEN KEPT AWAY FROM THE POLLS THERE IS A CONSTITUTIONAL RIGHT TO PRIVACY IT HAS TWO COMPONENTS THE FIRST IS A RIGHT TO BE LEFT ALONE DERIVED FROM THE FOURTH AMENDMENT'S PROTECTION AGAINST UNREASONABLE POLICE SEARCHES AND SEIZURES THE SECOND IS A RIGHT OF PERSONAL AUTONOMY WHICH PREVENTS GOVERNMENT FROM INTERFERING EXCESSIVELY WITH SUCH DECISIONS AS WHETHER A WOMAN MAY SEEK AN ABORTION HER PERSONAL VIEWS ON THE APPROPRIATENESS OF THE DEATH PENALTY AND ABORTION WOULDN'T BE RELEVANT TO HER LEGAL DECISIONS ON THOSE SUBJECTS SHE DECLINED TO SAY WHAT HER VIEWS ARE 9307220117 930722 OTC FOCUS EFFECT OF INFLATION WORRIES ON BONDS LOWERS INDEX BY 182 FOR 70008 CLOSE BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BONDS SPUTTERED ON INFLATION FEARS DEPRESSING NASDAQ STOCK PRICES WHILE MOST BIGMOVING ISSUES TOOK THEIR CUE FROM EARNINGSRELATED NEWS THE NASDAQ COMPOSITE INDEX SLIPPED 182 POINTS OR 026 TO FINISH AT 70008 DECLINING ISSUES BEAT OUT ADVANCERS 1439 TO 1311 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME REACHED 211450000 SHARES COMPARED WITH 219660000 YESTERDAY THE TREASURY'S LONG BOND SOLD OFF MORE THAN THREEFOURTHS OF A POINT YESTERDAY DRIVING ITS YIELD HIGHER TO ABOUT 662 TUESDAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN EXPRESSED CONCERN ABOUT INFLATION DURING CONGRESSIONAL TESTIMONY BUT TRADERS SAY THAT INVESTORS CONTINUE TO WATCH CORPORATE PROFIT REPORTS CLOSELY PARTICULARLY IN THE TECHNOLOGY GROUP EVERYBODY'S SO SENSITIVE BECAUSE EARNINGS HAVE NOT BEEN VERY GOOD SAYS JIM WHIPPLE SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS THEY'RE AFRAID OF TECHNOLOGY RIGHT NOW BECAUSE AS THE TECHS MOVE SO DOES THE MARKET AS A WHOLE TECHNOLOGY STOCKS STARTED THE SESSION WEAKER BUT WERE ABLE TO RECOUP SOME MILD LOSSES BY THE DAY'S END THOUGH THERE HAVE BEEN NO MAJOR LOSERS IN THE SECTOR THIS WEEK INVESTORS ARE STILL JITTERY AFTER DELL COMPUTER LEGENT APPLE COMPUTER AND NEW YORK STOCK EXCHANGETRADED STORAGE TECHNOLOGY GOT HAMMERED LAST WEEK ON DISAPPOINTING EARNINGS NEWS ON THE BIG BOARD STOCK ACTIVITY WAS MOSTLY FOCUSED ON EARNINGS THE DOW JONES INDUSTRIAL AVERAGE SET A RECORD BY RISING 1062 POINTS OR 03 TO 355540 BUT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 011 POINT OR 004 TO 24760 BANK AND OTHER FINANCIAL ISSUES CONTINUED TO PERFORM WELL DESPITE HIGHER INTEREST RATES THOMAS BERLIN SENIOR VICE PRESIDENT OF OTC TRADING AT MCDONALD & CO SECURITIES ATTRIBES THE STRENGTH TO ROBUST EARNINGS WITH ABOUT HALF OF THE COMPANIES' HAVING ALREADY REPORTED THE NASDAQ BANK INDEX CLIMBED 287 POINTS OR 045 TO END AT 63725 THE NASDAQ OTHER FINANCE INDEX ADDED 171 POINTS OR 02 TO FINISH AT 85205 PETER CANELO A MARKET STRATEGIST AT NATWEST SECURITIES SAID THE OVERTHECOUNTER MARKET IS MORE EARNINGSSENSITIVE THAN THE BIG BOARD MANY OF THE OTC STOCKS HAD GOTTEN PRETTY HIGH AND THE INFLATION FEAR IS A CONVENIENT EXCUSE TO SELL HE SAID IF EARNINGS ARE GOOD FROM THIS POINT THE NASDAQ MARKET COULD MOVE HIGHER BUT THE PROBLEM IS SO MANY TECH COMPANIES HAVE COME IN LIGHT OR HAVE ANNOUNCED THAT THEY'RE GOING TO COME IN LIGHT MR CANELO ADDED THAT EARNINGS OF BIG BOARDTRADED STOCKS HAVE IMPROVED BY AN AVERAGE OF ABOUT 25 IN THE LATEST QUARTER FROM A YEAR EARLIER ABOVE AN EXPECTED 15 RISE BUT MANY OTC COMPANIES HAVE REPORTED EARNINGS ON THE DOWNSIDE OF ANALYST ESTIMATES HE SAID MICROSOFT LED THE MOSTACTIVES LIST WEAKENING 1 1/2 TO 79 ON VOLUME OF ABOUT 56 MILLION SHARES AVERAGE DAILY VOLUME FOR THE REDMOND WASH COMPANY IS ABOUT 19 MILLION SOUNDVIEW FINANCIAL GROUP CUT ITS FISCAL 1994 EARNINGS ESTIMATE FOR THE COMPUTER SOFTWARE COMPANY TO 368 A SHARE FROM 390 CITING A WORSENING OUTLOOK FOR MICROSOFT'S EUROPEAN BUSINESS SEPARATELY THE FEDERAL TRADE COMMISSION ADJOURNED AN ANTICOMPETITIVENESS MEETING YESTERDAY WITHOUT TAKING ACTION AGAINST MICROSOFT CHARGES THAT THE COMPANY ENGAGES IN ANTICOMPETITIVE BUSINESS PRACTICES WERE KNOWN TO BE THE MAIN ITEM ON THE AGENDA AT THE CLOSED MEETING LOTUS DEVELOPMENT'S ANNOUNCEMENT TUESDAY THAT IT BACKS THE HIGHER END OF ANALYSTS' SECONDQUARTER EARNINGS EXPECTATIONS HELPED PUSH ITS SHARE PRICE UP 2 1/4 TO 39 5/8 IN ACTIVE TRADING ANALYSTS PROJECT THAT THE CAMBRIDGE MASS SOFTWARE CONCERN WILL REPORT EARNINGS OF 30 CENTS TO 35 CENTS A SHARE BEFORE AN ACQUISITIONRELATED CHARGE SUPERMAC TECHNOLOGY SUNNYVALE CALIF GAINED 1 1/4 TO 19 3/4 AFTER REPORTING THAT SECONDQUARTER NET INCOME ROSE TO 26 CENTS A SHARE FROM 20 CENTS A YEAR EARLIER THE COMPANY SUPPLIES DESKTOP COLOR GRAPHICS SYSTEMS A SECONDQUARTER LOSS SENT TIMBERLINE SOFTWARE TUMBLING 1 3/8 TO 5 7/8 THE BEAVERTON ORE SOFTWARE DESIGNER SAID IT HAD A LOSS OF 64000 DURING THE QUARTER IT EARNED 6000 A YEAR EARLIER ALLSTATE FINANCIAL PLUNGED 6 3/4 OR 50 TO 6 3/4 ON VOLUME OF ABOUT 17 MILLION SHARES MORE THAN 100 TIMES THE AVERAGE DAILY VOLUME THE ARLINGTON VA COMPANY SAID IT EXPECTS A SECONDQUARTER LOSS OF ABOUT 750000 PRIMARILY FROM THE FAILURE OF A LARGE NEW YORKBASED CLIENT WASHINGTON MUTUAL SAVINGS BANK JUMPED 2 1/2 TO 37 1/2 THE SEATTLE COMPANY REPORTED SECONDQUARTER NET OPERATING EARNINGS OF 109 A SHARE COMPARED WITH 74 CENTS A YEAR EARLIER MAGMA POWER GAINED 2 3/4 TO 34 5/8 AFTER REPORTING SECONDQUARTER EARNINGS ROSE TO 56 CENTS A SHARE FROM 30 CENTS A YEAR EARLIER WALL STREET ANALYSTS HAD EXPECTED THE SAN DIEGO GEOTHERMAL RESOURCES COMPANY TO EARN 52 CENTS A SHARE CIRCON SANTA BARBARA CALIF DECLINED 1 TO 11 AFTER THE RELEASE OF SECONDQUARTER EARNINGS THAT CAME IN FAR BELOW ANALYSTS' FORECASTS OF ABOUT 19 CENTS A SHARE THE MEDICAL AND SURGICAL SUPPLY COMPANY REPORTED NET OF TWO CENTS A SHARE DOWN FROM 20 CENTS A YEAR EARLIER CASINO STOCKS WERE LOWER AGAIN CASINO MAGIC DROPPED 2 3/8 TO 17 7/8 BOOMTOWN FELL 1 7/8 TO 19 3/4 PLAYERS INTERNATIONAL DECLINED 1 3/8 TO 16 AND HOLLYWOOD CASINO LOST 1 1/2 TO 16 1/4 9307220116 930722 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK DAVID R HUBERS 50 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF IDS FINANCIAL SERVICES THE MUTUAL FUND AND INVESTMENTS UNIT OF THIS TRAVEL AND FINANCIAL SERVICES COMPANY HE HAD BEEN SENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF IDS HE SUCCEEDS JEFFREY E STIEFLER RECENTLY NAMED PRESIDENT OF AMERICAN EXPRESS IDS OWNS OR MANAGES 87 BILLION IN ASSETS 9307220115 930722 MARKETING & MEDIA ADVERTISING NEW YORKER'S MAKEOVER ATTRACTS A YOUNGER AND RICHER AUDIENCE BY KEVIN GOLDMAN THE METAMORPHOSIS AT THE NEW YORKER CAN NOW BE CONSIDERED COMPLETE ACCORDING TO NEW MARKET RESEARCH ON THE MAGAZINE'S AUDIENCE YESTERDAY SIMMONS MARKET RESEARCH BUREAU RELEASED DATA THAT SHOWED WHAT MADISON AVENUE AND THE PUBLISHING INDUSTRY HAD SUSPECTED FOR MONTHS THE AUDIENCE FOR THE VINTAGE WEEKLY OWNED BY THE CONDE NAST UNIT OF SI NEWHOUSE JR'S ADVANCE PUBLICATIONS HAS GOTTEN YOUNGER AND RICHER SINCE FORMER VANITY FAIR EDITOR TINA BROWN TOOK OVER LAST OCTOBER THOUGH THE VENERABLE NEW YORKER HAD FAITHFUL FOLLOWERS AND A DISTINCTIVE CHARACTER ITS CIRCULATION AND ADVERTISING HAD SUFFERED PRIOR TO MS BROWN'S ARRIVAL CRITICS BLAMED ITS ARCANE TONE AND INTIMIDATINGLY LONG ARTICLES MS BROWN HAS SPRUCED UP THE MAGAZINE ADDED MANY OF VANITY FAIR'S MORE GLIB WRITERS AND FOCUSED ON NEWSIER SHORTER ARTICLES AND PROFILES EMPHASIZING SUCH AREAS AS MEDIA ENTERTAINMENT BUSINESS AND LAW THOUGH SOME BEMOAN THE CHANGES SIMMONS'S FIGURES INDICATE THE MAGAZINE IS LURING A MORE DESIRABLE AUDIENCE FROM AN ADVERTISER'S STANDPOINT THE AVERAGE READER IS NOW 461 YEARS OLD COMPARED WITH 477 YEARS OLD A YEAR EARLIER AND THE MEDIAN HOUSEHOLD INCOME CLIMBED 13 TO 61515 FROM 54702 A YEAR EARLIER ACCORDING TO SIMMONS AN INDEPENDENT PUBLISHING RESEARCH UNIT OF WPP GROUP CIRCULATION AND ADVERTISING FIGURES ALREADY HAD REFLECTED THE IMPROVEMENTS ACCORDING TO THE PUBLISHER'S INFORMATION BUREAU THE NEW YORKER'S AD PAGES FOR THE FIRST SIX MONTHS OF THIS YEAR ROSE 17 TO 967 PAGES THE LATEST FIGURES SHOW THAT THE NEW YORKER AS OF LAST DECEMBER HAD REACHED CIRCULATION OF 658916 UP 51 FROM THE SAME PERIOD A YEAR AGO THE NEW SIMMONS FIGURES HOWEVER FOR THE FIRST TIME PROVIDE DEMOGRAPHIC INFORMATION THAT AGENCIES USE TO MAKE CRITICAL ADVERTISING BUYS AND CHOOSE MAGAZINES THAT COULD HELP AT THE NEW YORKER WHERE THE TALK OF THE TOWN ISN'T ALL GOOD SOME MAJOR HIGHPROFILE ADVERTISERS CONTINUE TO AVOID THE MAGAZINE STEVEN FLORIO PRESIDENT OF THE NEW YORKER CONCEDES IN AN INTERVIEW THAT HE HAS A WISH LIST AND AT THE TOP OF IT ARE NOTYET CLIENTS INCLUDING BMW OF NORTH AMERICA THE US UNIT OF BAYERISCHE MOTOREN WERKE AG AND CALVIN KLEIN MR KLEIN DID ADVERTISE IN THE FIRST ISSUE OF MS BROWN'S TENURE THE OCT 5 ISSUE BUT HAS BEEN ABSENT SINCE A SPOKESWOMAN DECLINES TO COMMENT A SPOKESMAN FOR BMW SAYS THE SELECTION PROCESS IS ALWAYS BEING EVALUATED I'M SURE THE NEW YORKER IS BEING CONSIDERED MR FLORIO ALSO SAYS HE WOULD LIKE TO SIGN UP MAJOR RETAIL CHAINS WE DO A GOOD JOB WITH BLOOMINGDALE'S BUT WE CAN DO BETTER HE SAYS THE NEW YORKER HAS WOOED BACK SOME ADVERTISERS WHO HAD STRAYED PERHAPS MOST NOTABLY GENERAL MOTORS' CADILLAC DIVISION WHICH BOLTED LAST YEAR AFTER A PROFANITY APPEARED IN AN ARTICLE THE SAME PROFANITY HAD APPEARED IN THE MAGAZINE BEFORE MS BROWN'S REIGN A SPOKESMAN FOR CADILLAC SAID ITS EXECUTIVES ARE ON VACATION FOR TWO WEEKS AND UNAVAILABLE FOR COMMENT BUT MR FLORIO BOASTS WE GOT THEM BACK AND WE DID SO BY REASSURING THEM AND SHOWING THE QUALITY OF WHAT WE DO MR FLORIO SAYS TWO PIECES IN PARTICULAR A PROFILE OF MEDIA GIANT BARRY DILLER AND THE MAGAZINE'S CELEBRATION OF BROADWAY'S 100TH ANNIVERSARY WERE CRITICAL TO CADILLAC'S RETURN THOUGH THE NEW YORKER IS CONSIDERED MORE OF A NATIONAL MAGAZINE IT MAY HAVE WOOED SOME OF ITS NEW AUDIENCE FROM KIII PUBLICATIONS' NEW YORK MAGAZINE THE 25YEAROLD WEEKLY THAT HAS LONG BEEN CONSIDERED THE BIBLE OF HIP AFFLUENT NEW YORKERS ACCORDING TO SIMMONS NEW YORK'S READERS AGED TO 432 YEARS OLD FROM 402 A YEAR AGO AND ITS MEDIAN HOUSEHOLD INCOME DROPPED 14 TO 44824 FROM 52011 A YEAR EARLIER THE NEW YORKER'S YOUNGER AFFLUENT READER IS COMING FROM SOMEWHERE ASKED WHETHER THE NEW YORKER IS STEALING SOME READERS FROM NEW YORK MR FLORIO SAYS WE NEVER SELL AGAINST ONE PARTICULAR MAGAZINE EDWARD KOSNER EDITOR AND PRESIDENT OF NEW YORK MAGAZINE DISMISSES ANY DATA SUPPLIED BY SIMMONS WE'VE NOT BOUGHT SIMMONS FOR THE PAST TWO YEARS BECAUSE THEIR NUMBERS OSCILLATE TOO BIZARRELY FROM YEAR TO YEAR NEW YORK'S CIRCULATION ROSE 22 TO 437866 IN THE MOST RECENTLY AUDITED PERIOD AND ITS AD PAGES WERE UP 45 TO 1115 IN THE FIRST SIX MONTHS OF THIS YEAR ON THE SAME DAY THE NEW YORKER WAS CELEBRATING THE SIMMONS RESEARCH IT WAS GRABBING ATTENTION OVER A CONTROVERSIAL COVER FOR THE SECOND TIME SINCE MS BROWN CAME ABOARD THE NATIONAL ETHNIC COALITION OF ORGANIZATIONS SAID THE MAGAZINE SHOULD APOLOGIZE FOR THIS WEEK'S COVER THAT THE GROUP SAYS INSULTED THE ARAB COMMUNITY THE COVER BY ARTIST DAVID MAZZUCCHELLI SHOWS FOUR YOUNG BOYS BUILDING A NEW YORK CITY SKYLINE OUT OF SAND ON A BEACH ONE YOUNGSTER DRESSED IN ARAB GARB IS ABOUT TO JUMP ON THE WORLD TRADE CENTER WHICH WAS BOMBED LAST DECEMBER ALLEGEDLY BY ARAB TERRORISTS IN A STATEMENT THE NEW YORKER SAID THE COVER IS NOT A JOKE AT THE EXPENSE OF ARAB AMERICANS IT'S A JOKE ABOUT THE CULTURAL STEREOTYPES AND HOW CHILDREN ABSORB THEM FROM TELEVISION EARLIER THIS YEAR THE NEW YORKER DREW FIRE FOR A COVER DEPICTING A HASIDIC MAN AND A BLACK WOMAN KISSING THE TELEVISION NETWORKS' UPFRONT SELLING SEASON ENDED WITH AN ESTIMATED 36 BILLION CHANGING HANDS EXECUTIVES SAID FOR ADVERTISING TIME DURING THE NEW SEASON THAT STARTS THIS FALL TOTAL SALES WERE FLAT COMPARED WITH LAST YEAR THEY SAID THE ABC NETWORK A UNIT OF CAPITAL CITIES/ABC INC SOLD ABOUT 11 BILLION COMPARED WITH ABOUT 940 MILLION LAST YEAR ACCORDING TO INDUSTRY ESTIMATES THE CBS NETWORK A UNIT OF CBS INC SOLD ABOUT 105 BILLION COMPARED WITH 12 BILLION LAST YEAR GENERAL ELECTRIC CO'S NBC NETWORK SOLD ABOUT 900 MILLION IN ADVERTISING TIME COMPARED WITH 950 MILLION LAST YEAR ACCORDING TO THE ESTIMATES NEWS CORP'S FOX NETWORK WROTE UP ABOUT 550 MILLION IN ORDERS COMPARED WITH 500 MILLION LAST YEAR REPRESENTATIVES FOR THE NETWORKS EITHER DECLINED TO COMMENT OR COULDN'T BE REACHED BRIGHT SPOTS IN THE TV ADVERTISING MARKET INCLUDED MOVIE ADVERTISING WHICH INCREASED AN ESTIMATED 60 TO 350 MILLION OVER THE FOUR NETWORKS EXECUTIVES SAID CREDITCARD COMPANIES NEARLY DOUBLED THEIR TV SPENDING TO 64 MILLION AND PACKAGED GOODS WERE DOWN TO AN ESTIMATED 460 MILLION FROM ABOUT 500 MILLION LAST YEAR THE EXECUTIVES SAID ACCOUNTS AVEDA CORP THE NATURAL BEAUTY AIDS MANUFACTURER IN MINNEAPOLIS TAPPED MULLEN INC OF WENHAM MASS FOR THE CREATIVE PORTION OF ITS ESTIMATED 5 MILLION ACCOUNT WITHOUT A REVIEW THE BUSINESS WAS PREVIOUSLY HANDLED IN HOUSE MEAD CORP'S MEAD DATA CENTRAL TAPPED THE RICHARDS GROUP OF DALLAS TO CREATE NATIONAL ADVERTISING FOR THE LEXIS COMPUTERIZED LEGALRESEARCH SYSTEM BILLINGS COULDN'T BE DETERMINED 9307220114 930722 FTC AGAIN FAILS TO MAKE RULING ON MICROSOFT FIRM CALLS SPLIT VOTE IN CASE ON UNFAIR COMPETITION A QUALIFIED VICTORY BY JOE DAVIDSON AND STEPHEN KREIDER YODER STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL TRADE COMMISSION AGAIN FAILED TO REACH A CONCLUSION ON ALLEGATIONS THAT MICROSOFT CORP UNFAIRLY USES ITS DOMINANT MARKET POWER AGAINST COMPETITORS THAT LED THE COMPANY TO DECLARE A QUALIFIED VICTORY IN THE THREEYEAROLD INVESTIGATION THE COMMISSION SPLIT 22 ON WHETHER TO ACCEPT STAFF RECOMMENDATIONS THAT IT TAKE ACTION AGAINST MICROSOFT THE TIE VOTE MEANS THE COMPANY MAY CONTINUE OPERATING AS IT HAS WHILE THE CASE REMAINS OPEN AND ACTION MAY STILL BE TAKEN AGAINST THE REDMOND WASH COMPUTERSOFTWARE GIANT NO MEETING HAS BEEN SCHEDULED TO CONTINUE THE COMMISSION'S MICROSOFT DEBATE BUT WHILE CONCEDING THAT THE FTC'S FUTURE MOVES AREN'T CERTAIN THE VOTE NOT TO ISSUE AN ADMINISTRATIVE COMPLAINT IS A VICTORY FOR THIS PHASE SAID MICROSOFT LAWYER WILLIAM NEUKOM THERE HAVE BEEN TWO SHOWDOWNS AND WE'VE BEEN GRATIFIED BOTH TIMES BY THE RESULT THE FTC ALSO FAILED TO ACCEPT STAFF RECOMMENDATIONS FOR ACTION AGAINST MICROSOFT AT A MEETING IN FEBRUARY THAT TIME THOUGH ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATION THE FTC WARNED MICROSOFT THAT MORE RECOMMENDATIONS WERE IN THE PIPELINE THIS TIME THEY SAY THERE WAS NO SUCH WARNING COMPETITORS HAVE ACCUSED MICROSOFT OF USING THE POPULARITY OF ITS MSDOS DISK OPERATING SYSTEM TO FORCE COMPUTEREQUIPMENT MANUFACTURERS TO PURCHASE MICROSOFT PRODUCTS ONE CLAIM LED BY RIVAL NOVELL INC IS THAT MICROSOFT'S LICENSING PRACTICES MAY UNFAIRLY KEEP COMPETITORS OUT OF THE MARKET FOR PC OPERATING SYSTEMS ALMOST ALL PC MAKERS SELL THEIR WARES WITH MICROSOFT'S MSDOS OPERATING SYSTEM ALREADY LOADED BUT NOVELL WOULD LIKE TO CRACK THAT MARKET BY GETTING MAKERS TO LOAD NOVELL'S CLONE OF THAT SYSTEM DRDOS INSTEAD BUT MICROSOFT MAKES IT UNATTRACTIVE FOR PC MAKERS TO USE DRDOS NOVELL ARGUES BECAUSE MICROSOFT CHARGES LOWER ROYALTY PAYMENTS TO THOSE THAT AGREE TO TAKE OUT A LICENSE TO LOAD MSDOS ON ALL THEIR MACHINES INSTEAD OF PAYING A MACHINEBYMACHINE ROYALTY MICROSOFT DENIES THE PRACTICE IS ANTICOMPETITIVE NOVELL HAS ALSO ACCUSED MICROSOFT OF ENGAGING IN AN UNFAIR TRADE PRACTICE BY DESIGNING ITS WINDOWS 31 PRODUCT SO THAT IT COULD NOT BE USED WITH NOVELL'S DRDOS OPERATING SYSTEM MICROSOFT SAYS IT HASN'T DONE ANYTHING DELIBERATE TO MAKE WINDOWS INCOMPATIBLE WITH DRDOS BUT STRESSES THAT IT ISN'T OBLIGATED TO WRITE ITS SOFTWARE TO RUN ON RIVALS' OPERATING SYTEMS NOVELL'S CLAIMS MICROSOFT SAYS STEM FROM AN EARLY PROTOTYPE OF WINDOWS THAT WARNED USERS THAT THE PROGRAM HADN'T BEEN TESTED ON OPERATING SYSTEMS OTHER THAN MICROSOFT'S NOVELL'S GENERAL COUNSEL DAVID BRADFORD SAID THE FTC'S FAILURE TO PASS THE STAFF RECOMMENDATION IS FRUSTRATING WE THINK IT'S A BLOW TO THE CUSTOMERS OUT THERE WHO MUST BEAR THE BRUNT OF MICROSOFT'S BLATANT ANTICOMPETITIVE PRACTICES MR BRADFORD SAID NOVELL AND OTHER MICROSOFT COMPETITORS HOPE THE JUSTICE DEPARTMENT WILL TAKE THE CASE FROM THE FTC'S HANDS AND START ITS OWN INVESTIGATION INTO ANTITRUST ALLEGATIONS CONCERNING MICROSOFT HE SAID NOVELL ALSO HASN'T RULED OUT THE POSSIBILITY OF FILING AN ANTITRUST SUIT OF ITS OWN AGAINST MICROSOFT THE FTC STAFF HAD RECOMMENDED THAT THE COMMISSION TAKE ADMINISTRATIVE ACTION AGAINST MICROSOFT UNDER THE ADMINISTRATIVE ROUTE THE COMMISSION WOULD ISSUE A COMPLAINT AND A HEARING ON THE MATTER THEN WOULD BE CALLED BY AN ADMINISTRATIVE LAW JUDGE WHO WOULD DECIDE WHAT ACTION IF ANY TO TAKE AGAINST THE COMPANY THE JUDGE'S DECISION COULD BE APPEALED TO THE COMMISSIONERS AND THEN TO FEDERAL DISTRICT COURT AN ADMINISTRATIVE ACTION TAKES FAR LONGER THAN A COURTISSUED PRELIMINARY INJUNCTION THE FTC STAFF HAD URGED THE COMMISSION TO SEEK AN INJUNCTION AT ITS FEBRUARY MEETING BUT THE TIE VOTE THEN EFFECTIVELY KILLED THAT RECOMMENDATION AS IN FEBRUARY COMMISSIONERS DENNIS YAO AND JANET STEIGER THE CHAIRWOMAN VOTED IN FAVOR OF TAKING ACTION AGAINST MICROSOFT WHILE MARY AZCUENAGA AND DEBORAH OWEN WERE OPPOSED PEOPLE FAMILIAR WITH THE VOTE SAID COMMISSIONER ROSCOE STAREK DIDN'T PARTICIPATE BECAUSE HE HAS A FINANCIAL CONFLICT OF INTEREST 9307220113 930722 TECHNOLOGY & HEALTH EPA PAMPHLET TO TELL WAYS TO CUT EXPOSURE TO TOBACCO SMOKE WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY FOLLOWING UP ON ITS FINDING THAT SECONDHAND TOBACCO SMOKE IS A HUMAN CARCINOGEN ISSUED A PAMPHLET RECOMMENDING WAYS FOR OFFICES RESTAURANTS BARS AND PRIVATE RESIDENCES TO RESTRICT NONSMOKERS' EXPOSURE TO CIGARETTE SMOKE THE RECOMMENDATIONS DON'T HAVE THE FORCE OF LAW AT A HEARING YESTERDAY EPA ADMINISTRATOR CAROL BROWNER DECLINED TO ENDORSE AN EXPLICIT GOVERNMENT BAN ON SMOKING BUT THE PAMPHLET DOES PROVIDE MORE FEDERAL SUPPORT FOR BUSINESSES LOCAL GOVERNMENTS AND PRIVATE CITIZENS TO FURTHER RESTRICT TOBACCO USE THE EPA'S LATEST ACTION ON PASSIVE SMOKE COMES ONE MONTH AFTER PHILIP MORRIS COS AND RJR NABISCO HOLDINGS CORP FILED A LAWSUIT IN FEDERAL COURT IN NORTH CAROLINA SEEKING TO NULLIFY THE EPA FINDING THAT PASSIVE SMOKE CAUSES CANCER YESTERDAY THE EPA FILED A MOTION TO DISMISS THE SUIT ON THE GROUNDS THAT ITS FINDING WASN'T A RULING BUT RATHER A SCIENTIFIC ASSESSMENT FOR OFFICES THE EPA PAMPHLET WHICH WON'T BE WIDELY AVAILABLE UNTIL NEXT MONTH RECOMMENDS EITHER PROHIBITING SMOKING IN ALL INDOOR AREAS OR RESTRICTING SMOKING TO ROOMS SPECIALLY DESIGNED TO PREVENT SMOKE FROM ESCAPING TO OTHER AREAS OF THE BUILDING IF A BUSINESS CREATES A SMOKING ROOM THE PAMPHLET SAYS IT SHOULD BE WHERE NONSMOKERS ARE NEVER REQUIRED TO ENTER AIR FROM A SMOKING ROOM SHOULD BE VENTED DIRECTLY TO THE OUTSIDE BY AN EXHAUST FAN IT SAYS THE PAMPHLET SPECIFIES THAT THE VENTILATION SYSTEM IN AN OFFICE SMOKING ROOM SHOULD PROVIDE FOR EACH SMOKER 60 CUBIC FEET PER MINUTE OF INCOMING AIR THOMAS LAURIA A SPOKESMAN FOR THE TOBACCO INSTITUTE CONCEDED THAT THE RECOMMENDATIONS ABOUT OFFICE VENTILATION HAVE BEEN ENDORSED BY PHILIP MORRIS RJ REYNOLDS AND THE TOBACCO INSTITUTE ITSELF 9307220112 930722 WHO'S NEWS NORTEK INC NORTEK INC PROVIDENCE RI D STEVENS MCVOY VICE PRESIDENT OF COAXIAL COMMUNICATIONS OF CENTRAL OHIO INC WAS ELECTED A DIRECTOR OF THIS BUILDINGPRODUCTS COMPANY HE SUCCEEDS VICTORIA LEDERBERG WHO RESIGNED WHEN SHE WAS NAMED A JUDGE ON RHODE ISLAND'S SUPREME COURT 9307220110 930722 PEPPERAND SALT LINES UP FOR ITS FUEL RUN ON CAFFEINE IT LOOKS A LOT LIKE JAIL 9307220109 930722 WHO'S NEWS BRADLEES INC BRADLEES INC BRAINTREE MASS TWO DIRECTORS PAUL E RAETHER AND CLIFTON S ROBBINS OF KOHLBERG KRAVIS ROBERTS & CO RESIGNED FROM THE BOARD OF THIS DISCOUNT DEPARTMENT STORE CHAIN KOHLBERG KRAVIS TOOK BRADLEES FORMER PARENT PRIVATE IN 1987 AND THEN SOLD BRADLEES TO THE PUBLIC IN JULY 1992 AND BRADLEES SAID THE KKR REPRESENTATIVES HAD REMAINED ONLY DURING THE TRANSITION PERIOD IT SAID IT PLANS TO REPLACE ONE OR BOTH OF THEM BRADLEES HAD SEVEN DIRECTORS BEFORE THE TWO MEN RESIGNED 9307220108 930722 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITISH COAL WHICH SCALED BACK A MINECLOSING PLAN FOLLOWING NATIONWIDE PROTESTS LAST FALL SAID IT MAY HAVE TO CLOSE MORE OF ITS 30 REMAINING PITS IF IT CAN'T FIND BUYERS FOR MORE OF THEIR COAL OUTPUT THE STATEOWNED COMPANY WHICH HAD OPERATED 50 MINES LAST YEAR SUSPENDED ITS PLAN TO CLOSE 31 OF THEM AND REDUCED THE CLOSURE LIST TO 20 BUT IT ALLOWED FOR FURTHER SHUTDOWNS SAYING SUBSIDIES TO KEEP PITS RUNNING WOULD DEPEND PARTLY ON WHETHER MARKETS FOR THE COAL COULD BE FOUND MORE PIT CLOSINGS SEEM INEVITABLE THE COMPANY SAID YESTERDAY AS IT POSTED A NET LOSS OF 8885 MILLION FOR THE YEAR ENDED LAST MARCH THE DEFICIT CAME AFTER A 154 BILLION CHARGE FOR ONETIME ITEMS INCLUDING RESTRUCTURING COSTS A YEAR EARLIER BRITISH COAL EARNED 2795 MILLION AFTER SPECIAL CHARGES OF 2176 MILLION YET DESPITE AN 11 DROP IN SALES VOLUME OPERATING PROFIT INCREASED 29 TO 8235 MILLION THE THIRD CONSECUTIVE ANNUAL RISE REFLECTING SUCCESS IN REDUCING COSTS AND INCREASING PRODUCTIVITY IN ANOTHER MARKET REFORM CHINA FOR THE FIRST TIME WILL ALLOW BANKS AND OTHER FIRMS TO SELL TREASURY BONDS DIRECTLY NINETEEN FINANCIAL INSTITUTIONS WERE AUTHORIZED TO ACT AS PRIMARY DEALERS OF CHINESE GOVERNMENT BONDS BY THE END OF THIS MONTH THEY ARE TO UNDERWRITE 350 MILLION OF TREASURY BONDS AND SELL THEM TO INVESTORS EXPERIMENTAL UNDERWRITING WAS INTRODUCED ON A LIMITED BASIS IN 1991 TO SET METHODS OF PRICE QUOTATION AND TRADING LITHUANIA ESTABLISHED THE LITAS AS ITS SOLE CURRENCY WITHDRAWING COUPONS FROM CIRCULATION THE COUPONS WERE INTRODUCED LAST OCTOBER AFTER THE FORMER SOVIET REPUBLIC DISCONTINUED USE OF THE RUSSIAN RUBLE THE BALTIC NATION HAD OFFERED EXCHANGES AT A RATE OF 100 COUPONS FOR EACH LITAS WHICH LAST TRADED AT 43 TO THE DOLLAR THE LITAS IS TIED TO A BASKET OF THE US GERMAN BRITISH AND FRENCH CURRENCIES POLICE IN ATHENS ARRESTED 17 GREEK TRADE UNION LEADERS WHO OCCUPIED THE ECONOMY MINISTER'S OFFICE TO PROTEST PLANS TO SELL OFF PART OF PUBLIC UTILITIES AMONG EFFORTS TO CUT SPENDING AND DEBT AS PUBLIC POWER CORP EMPLOYEES BEGAN A 48HOUR STRIKE TO OPPOSE PRIVATIZATION LEGISLATION PARLIAMENT PASSED IT THE MEASURE ALSO LETS PRIVATE FIRMS SELL ELECTRICITY TO THE UTILITY MONOPOLY PRIVATIZATION OPPONENTS ARGUED THAT FOREIGN INVESTORS WOULD CONTROL THE UTILITIES THE GOVERNMENT ALSO PLANS TO OFFER 49 OF ITS TELECOMMUNICATIONS COMPANY TO PRIVATE INVESTORS GERMAN STATE COURTS DEALT SETBACKS TO NUCLEAR ENERGY BLOCKING OPERATION OF A CLOSED NUCLEAR POWER PLANT AND A NUCLEAR FUEL FACTORY BUT THE ENVIRONMENT MINISTRY NOTING THE JUDGES DIDN'T CONSIDER ELECTRICITY NEEDS SAID FURTHER COURT PROCEEDINGS WILL FIND THE PLANTS SAFE A RHINELANDPALATINATE COURT REJECTED REOPENING THE STATE POWER COMPANY'S MUELHEIMKAERLICH PLANT SHUT SEVERAL YEARS AGO BECAUSE OF EARTHQUAKESAFETY QUESTIONS A HESSE COURT RULED THAT PERMITS WERE FAULTY FOR THE HANAU PLANT THAT USES PLUTONIUM AND URANIUM TO PRODUCE FUEL ELEMENTS CHINA'S RAILROADS ARE REELING FROM A WAVE OF ROBBERIES ABOARD TRAINS AND THEFTS OF TRACKS AND EQUIPMENT AUTHORITIES ARE TARGETING 6200 MILES OF ROAD HIT HARDEST BY CRIME THE CHINA DAILY SAID MANY FARMERS PLUNDER TRACKS AND OTHER GEAR FINDING A READY MARKET AND THIEVES HAVE SET UP FURNACES ALONG RAIL LINES TO MELT THE STEEL THE THEFTS HAVE HAD SERIOUS CONSEQUENCES LAST DECEMBER A TRAIN IN NORTHERN CHINA DERAILED SINCE THE GOVERNMENT BEGAN A CRACKDOWN ON RAILROAD CRIMES IN MARCH POLICE HAVE MADE 410 ARRESTS AND RECOVERED STOLEN GOODS VALUED AT 12 MILLION THE NEWSPAPER SAID THE EUROPEAN COMMUNITY'S COMPETITION COMMISSIONER ABANDONED PLANS FOR JUDGING MORE CORPORATE MERGERS AT THE EC LEVEL BRITAIN FRANCE AND GERMANY HAD FIERCELY OPPOSED BROADENING EC CONTROL KAREL VAN MIERT'S DECISION IS EXPECTED TO BE ENDORSED BY THE EC COMMISSION NEXT WEEK HE CONCLUDED THAT AN ATTEMPT TO INCREASE THE EC'S MERGERS JURISDICTION COULD BACKFIRE LEADING MEMBER COUNTRIES TO REDUCE THE COMMISSION'S POWERS OFFICIALS WORRIED THAT BRITAIN WOULD TRY TO REQUIRE THE EC TO REFER MORE CASES TO NATIONAL ANTITRUST AGENCIES THAT GERMANY WOULD SEEK AN INDEPENDENT EUROPEAN MERGER BOARD AND THAT FRANCE WOULD SEEK NEW EMPHASIS ON EMPLOYMENT AND SOCIAL FACTORS IN MERGER EVALUATIONS UNDER EC VOTING RULES BRITAIN GERMANY AND FRANCE COULD HAVE BLOCKED A REDUCTION OF THRESHOLDS IN THE MERGERS LAW WHICH TOOK EFFECT IN SEPTEMBER 1990 THE LAW ALLOWS THE EC TO VETO OR APPROVE MERGERS INVOLVING EC OR NONEC COMPANIES BASED ON COMBINED WORLDWIDE SALES NATIONAL AUTHORITIES HANDLE OTHER CASES BRAZIL'S 7000MEMBER BORDER POLICE FEDERATION ENDED A SIXDAY STRIKE THAT DISRUPTED TRAVEL AND LEFT CUSTOMS AND IMMIGRATION POSTS UNGUARDED THE UNION CLAIMED SUCCESS IN DRAWING ATTENTION TO PAY AND EQUIPMENT CONCERNS ISRAELI GOVERNMENT EMPLOYEES ENDED A TWOWEEK STRIKE ABOUT 50000 CIVIL SERVANTS WALKED OUT JULY 7 AND 10000 MORE PUBLIC WORKERS STRUCK IN SOLIDARITY UNIONS WHICH DEMANDED A 35 WAGE INCREASE OVER THREE TO FOUR YEARS SETTLED FOR 20 OVER TWO YEARS 9307220107 930722 TECHNOLOGY & HEALTH BAN ON INCLUDING YOUNGER WOMEN IN DRUG TESTS ENDS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION ABANDONED A POLICY THAT EXCLUDED MOST WOMEN OF CHILDBEARING AGE FROM EARLY CLINICAL TRIALS OF DRUGS' SAFETY AND EFFECTIVENESS AT THE SAME TIME THE AGENCY IS TELLING PHARMACEUTICAL COMPANIES TO MAKE SURE WOMEN ARE APPROPRIATELY REPRESENTED IN DRUG TRIALS AND THAT NEW DRUG APPLICATIONS INCLUDE ANALYSIS OF POTENTIAL DIFFERENCES IN HOW DRUGS AFFECT MALES AND FEMALES THE POLICY CHANGES ARE OUTLINED IN AN ARTICLE BY FDA OFFICIALS IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE THE AGENCY PREVIOUSLY SAID IT WAS PLANNING TO MAKE THE CHANGES WHICH THE ARTICLE SAYS ARE PART OF A BROADER EFFORT TO ENSURE THAT THE SAFETY AND EFFECTIVENESS OF DRUGS ARE ADEQUATELY STUDIED IN THE FULL RANGE OF PEOPLE WHO WILL USE THEM THE EXCLUSION OF WOMEN WITH CHILDBEARING POTENTIAL DATES TO 1977 GUIDELINES THAT BARRED THEM FROM THE INITIAL PHASES OF STUDIES THAT ARE REQUIRED BEFORE A DRUG COMPANY SUBMITS A NEW DRUG APPLICATION THE AIM WAS TO AVOID BIRTH DEFECTS WOMEN OF CHILDBEARING AGE COULD PARTICIPATE IN LATER STUDIES ONCE CERTAIN DATA ON SAFETY AND EFFECTIVENESS HAD BEEN OBTAINED THE BAN DIDN'T APPLY TO WOMEN WITH LIFETHREATENING DISEASES SUCH AS AIDS OR CANCER NOW THE FDA HAS DECIDED THAT THE BENEFITS OF INCLUDING THESE WOMEN IN THE TRIALS OUTWEIGHS THE RISK OF FETAL INJURY AND THAT IT'S POSSIBLE TO TAKE PRECAUTIONS THAT MINIMIZE THAT RISK THE AGENCY CAUTIONED THOUGH THAT LIABILITY CONCERNS MAY PRECLUDE A RUSH BY MANUFACTURERS TO INCLUDE THE WOMEN IN TRIALS IN SEEKING ADDITIONAL DATA ON DIFFERENCES IN HOW DRUGS AFFECT MEN AND WOMEN THE AGENCY SAID A SURVEY SHOWED THAT DRUG COMPANIES HAVEN'T ADEQUATELY BEEN STUDYING THE ISSUE THE FDA SAID IT WILL REVIEW ALL NEW DRUG APPLICATIONS SHORTLY AFTER THEY ARE SUBMITTED AND CALL FOR SUCH ANALYSIS IF IT ISN'T INCLUDED THE AGENCY SAID IT MAY REFUSE APPLICATIONS FROM COMPANIES THAT DON'T PROVIDE SUCH ANALYSIS WITHIN A REASONABLE PERIOD OF TIME 9307220106 930722 WHO'S NEWS GAP INC GAP INC SAN FRANCISCO PRESIDENT MILLARD DREXLER ASSUMED THE ADDITIONAL POST OF CHIEF OPERATING OFFICER SUCCEEDING ROBERT J FISHER WHO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR FISHER SUCCEEDS DAVID M DEMATTEI WHO BECOMES PRESIDENT OF THE APPAREL RETAILER'S BANANA REPUBLIC DIVISION A VACANT POSITION PATRICIA DEROSA FORMERLY EXECUTIVE VICE PRESIDENT OF THE GAP DIVISION WAS NAMED PRESIDENT OF THE GAPKIDS DIVISION AND RICHARD M LYONS FORMERLY EXECUTIVE VICE PRESIDENT OF GAPKIDS WAS NAMED PRESIDENT OF THE GAP DIVISION WILLIAM S FISHER EXECUTIVE VICE PRESIDENT OF INTERNATIONAL WAS NAMED PRESIDENT OF THAT DIVISION 9307220105 930722 YOUR MONEY MATTERS BROKERAGEHOUSE PROS SEE BONDS FIZZLING BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL LEADING BROKERAGEHOUSE STRATEGISTS THINK THE LONGRUNNING BOND RALLY IS ABOUT TO FIZZLE OUT AT 12 BIG BROKERAGE HOUSES TRACKED BY THIS NEWSPAPER THE AVERAGE RECOMMENDED BOND ALLOCATION HAS BEEN HOVERING AT AROUND 27 SINCE THE END OF APRIL THE LOWEST LEVEL IN MORE THAN SIX YEARS SO FAR THIS YEAR EXPERTS WHO THOUGHT THE BOND RALLY WAS OVER HAVE HAD TO EAT THEIR WORDS LIKE OLD MAN RIVER THE BOND RALLY JUST KEPT ROLLING ALONG IN THE SECOND QUARTER BONDS PROVIDED A TOTAL RETURN OF 29 WHILE STOCKS RETURNED ONLY 05 BUT MANY INVESTMENT PROFESSIONALS ARE SKEPTICAL THAT INTEREST RATES CAN DECLINE MUCH FURTHER THIS YEAR SINCE MARCH PAINEWEBBER INC PRUDENTIAL SECURITIES INC SALOMON BROTHERS AND LEHMAN BROTHERS FORMERLY SHEARSON LEHMAN BROTHERS HAVE ALL CUT BACK ON THE PORTION OF BONDS THEY RECOMMEND INVESTORS HOLD THIS NEWSPAPER TRACKS THE ADVICE OF A DOZEN BROKERAGEHOUSE STRATEGISTS AND STUDIES IT EACH QUARTER WITH HELP FROM WILSHIRE ASSOCIATES OF SANTA MONICA CALIF AND ECONOMICS OFFICE OF HANOVER NH OVER THE YEARS SINCE JANUARY 1987 THE AVERAGE RECOMMENDED INVESTMENT BLEND HAS BEEN 538 STOCKS 317 BONDS AND 136 CASH OTHER ASSETS SUCH AS GOLD HAVE ACCOUNTED FOR LESS THAN 1 TODAY THE AVERAGE BLEND IS 602 STOCKS 272 BONDS AND 126 CASH BONDS RALLIED MORE THAN I THOUGHT THEY WOULD ADMITS GREG SMITH A STRATEGIST FOR PRUDENTIAL WHO HAS THE BEST FIVEYEAR RECORD IN THE STUDY AT THIS POINT HE SAYS I DON'T THINK THE REST OF THE YEAR WILL BE TERRIBLE FOR BONDS I JUST THINK THE RALLY IS OVERDONE MR SMITH CONCEDES ONE POINT TO THE BOND BULLS INFLATION WILL STAY SUBDUED BUT HE SAYS BUYERS OF BONDS WHO LIKE TO SEE THE ECONOMY WEAK BECAUSE THAT KEEPS INTEREST RATES LOW SEEM TO BE CONVINCED THAT THE CLINTON ECONOMIC PACKAGE IS GOING TO KILL THE ECONOMY MR SMITH DOESN'T BELIEVE THE PROPOSED TAX INCREASES WILL HURT TOO BADLY HE FIGURES THE ECONOMY WILL PERK ALONG AT A NORMAL 3 GROWTH RATE FOR THE REST OF THIS YEAR THE BOND RALLY HAS BEEN PROPELLED BY WHAT MR SMITH VIEWS AS OVERLY ROSY EXPECTATIONS FOR REDUCTION IN THE FEDERAL BUDGET DEFICIT IF PEOPLE REALLY THINK THE BUDGET DEFICIT THREE YEARS FROM NOW IS GOING TO BE MEANINGFULLY DIFFERENT THAN IT IS NOW THEY'RE IN FOR SOME HUGE DISAPPOINTMENTS HE SAYS HE'S MUCH MORE OPTIMISTIC ABOUT STOCKS THOUGH HE DOESN'T EXPECT ANY FIREWORKS UNTIL FALL IF GERMANY'S BUNDESBANK SLASHES INTEREST RATES AND THE US BUDGET DEBATE IS RESOLVED HE SAYS STOCKS COULD RALLY 10 IN A FIVE OR SIXWEEK BLITZ EDWARD KERSCHNER STRATEGIST FOR PAINEWEBBER WAS THE TOP PERFORMER IN THE STUDY DURING THE PAST 12 MONTHS AS HE WAS FOR THE CALENDAR YEARS 1987 1990 AND 1991 HE RANKED SECOND IN 1992 THE 66 YIELD ON 30YEAR TREASURY BONDS IS A MIGHTY PRETTY COUPON WITH INFLATION SO LOW HE SAYS BUT YOUR CAPITAL GAINS ARE PROBABLY BEHIND YOU MR KERSCHNER EXPECTS STOCKS TO OFFER A 7 TO 10 RETURN DURING THE COMING 12 MONTHS NEITHER STOCKS NOR BONDS ARE CHEAP RIGHT NOW HE SAYS BUT CASH INSTRUMENTS PAYING ABOUT 3 HAVE NO INVESTMENT MERIT HE SAYS YOU DON'T HAVE TO BE BULLISH TODAY TO BE FULLY INVESTED THE BEST PERFORMANCE IN THE SECOND QUARTER WAS BY RAYMOND WORSECK ECONOMIST AND STRATEGIST AT AG EDWARDS & SONS INC IN ST LOUIS UNLIKE MOST STRATEGISTS HE HAS KEPT A FULL COMPLIMENT OF BONDS IN HIS PORTFOLIO ALL YEAR BUCKING THE TIDE OF OPINION HE RAISED HIS BOND ALLOCATION TO 40 FROM 30 IN MARCH MR WORSECK ISN'T CONVINCED THAT THE BOND RALLY IS OVER EVEN NOW HE SAYS THE YIELD ON 30YEAR TREASURY BONDS MIGHT GO BACK UP TO 7 OR SO IN THE NEXT FEW MONTHS BUT PREDICTS IT WILL BE UNDER 6 IN THE NEXT COUPLE OF YEARS EUROPE WILL BE CUTTING ITS INTEREST RATES TO COMBAT RECESSION WHICH SHOULD HELP US RATES HE SAYS THERE IS MORE RISK OF DEFLATION THAN INFLATION IN THE NEXT YEAR OR TWO AND HE SAYS THE BUDGET DEFICIT MAY COME DOWN TOO AS THE COUNTRY RELUCTANTLY BUT SLOWLY AND SURELY STARTS TO RESTRAIN MEDICARE AND SOCIAL SECURITY BENEFITS MR WORSECK ALSO BELIEVES THAT THE DOW JONES INDUSTRIAL AVERAGE WHICH WAS AT 355540 YESTERDAY COULD HIT 3700 WITHIN SIX WEEKS AS ECONOMIC ACTIVITY BEGINS TO LOOK STRONGER HERE'S A QUICK RUNDOWN ON WHAT A FEW OTHER WELLKNOWN STRATEGISTS ARE SAYING KIDDER PEABODY IT'S NOT THAT WE'RE WILDLY ENTHUSIASTIC ABOUT STOCKS SAYS EASTON RAGSDALE OF KIDDER PEABODY & CO EXPLAINING HIS BLEND OF 70 STOCKS AND 30 BONDS WE'RE PESSIMISTIC ABOUT BONDS A GRADUAL PICKUP IN THE ECONOMY WILL MAKE INTEREST RATES RISE A BIT HE BELIEVES HE POINTS OUT THAT BIG US COMPANIES GET ABOUT A QUARTER OF THEIR SALES ABROAD AN IMPROVEMENT IN THE MORIBUND ECONOMIES OF EUROPE COULD HELP STOCKS A LOT GOLDMAN SACHS AT GOLDMAN SACHS & CO STRATEGISTS STEVEN EINHORN AND ABBY COHEN SAY BONDS COULD OUTPERFORM STOCKS FOR THE NEXT FEW MONTHS BUT AROUND THE END OF THE SUMMER MR EINHORN SAYS STOCKS WILL REASSERT THEIR SUPERIORITY AS THE DETAILS OF CLINTON ADMINISTRATION POLICIES FALL INTO PLACE AND THE ECONOMY BEGINS TO SHOW A LITTLE MOMENTUM BOTH STOCKS AND BONDS ABSOLUTELY WILL BE BETTER INVESTMENTS THAN CASH HE SAYS LEHMAN BROTHERS MICHAEL SHERMAN THE FIRM'S LONGTIME STRATEGIST LEFT IN APRIL TO BECOME A PORTFOLIO MANAGER ELAINE GARZARELLI A WELLKNOWN QUANTITATIVE ANALYST AND ACTING STRATEGIST IS MORE BULLISH THAN MR SHERMAN WAS SHE RECOMMENDS A BLEND OF 75 STOCKS 25 BONDS AND ZERO CASH ONE OF WALL STREET'S FEW FANS OF PRESIDENT CLINTON'S ECONOMIC PROGRAM MS GARZARELLI SAYS IT WILL HELP KEEP INTEREST RATES LOW UNLESS WE'RE GOING INTO A RECESSION OR A DEPRESSION WHAT'S GOOD FOR THE BOND MARKET IS BETTER FOR THE STOCK MARKET SHE SAYS SHE SEES A NICE RALLY FOR STOCKS WITH RETURNS NEAR 15 THROUGH MID1994 LEHMAN BROTHERS WHICH HAS BEEN PART OF SHEARSON LEHMAN BROTHERS INC IS ALSO GOING THROUGH A STRUCTURAL CHANGE AMERICAN EXPRESS CO IS SELLING ITS SHEARSON RETAIL BROKERAGE OPERATION TO SMITH BARNEY HARRIS UPHAM & CO A UNIT OF PRIMERICA CORP WHICH WILL BECOME SMITH BARNEY SHEARSON AMERICAN EXPRESS'S CONTINUING SECURITIES BUSINESS WILL BE CARRIED ON UNDER THE LEHMAN BANNER AND THE SHEARSON LEHMAN RESEARCH DEPARTMENT WILL STAY AT LEHMAN SMITH BARNEY WILLIAM HELMAN COCHAIRMAN OF THE INVESTMENT POLICY COMMITTEE CHALLENGES THE NOTION THAT THE BOND RALLY IS FINISHED THOUGH BOND YIELDS ARE THE LOWEST THEY'VE BEEN IN SOME 20 YEARS HE SAYS THEY ARE STILL HIGHER THAN THEY WERE ANY TIME PRIOR TO THE 1960S ON STOCKS HE'S MODESTLY OPTIMISTIC SAYING THE BULL MARKET IS LATE IN THE CYCLE BUT THAT THERE'S NO VISIBLE CATALYST FOR A DECLINE SALOMON BROTHERS THOUGH HE WISHES HE HAD BEEN HEAVIER IN BONDS THIS YEAR SALOMON STRATEGIST DAVID SHULMAN THINKS IT'S TOO LATE TO CHARGE INTO THEM NOW WE'RE NEUTRAL ON BONDS AND LOOKING FOR A LITTLE BIT LOWER ON STOCKS HE SAYS WE DON'T THINK WE'RE GETTING COMPENSATED FOR THE RISK A HEAVY CALENDAR OF STOCK OFFERINGS AND A PEPPERING OF EARNINGS DISAPPOINTMENTS ARE AMONG THE FACTORS THAT MAKE HIM CAUTIOUS PERFORMANCE OF ASSETALLOCATION BLENDS RECOMMENDED BY 12 BROKERAGE HOUSES IN PERIODS ENDED JUNE 30 1993 HOUSES ARE RANKED BY 12MONTH PERFORMANCE ALSO SHOWN IS THE MIX EACH HOUSE NOW RECOMMENDS NOTE FIGURES DO NOT INCLUDE TRANSACTION COSTS 9307220104 930722 INTERNATIONAL SAAB AUTOMOBILE SEES TURNAROUND IN 1994 WITH NEW 900 MODEL SPECIAL TO THE WALL STREET JOURNAL TROLLHAETTAN SWEDEN INCREASED SALES AND STREAMLINED PRODUCTION WILL PUSH SAAB AUTOMOBILE AB BACK INTO THE BLACK IN 1994 PRESIDENT KEITH BUTLER WHEELHOUSE SAID DURING THE PRESENTATION OF THE NEW SAAB 900 AT COMPANY HEADQUARTERS HERE THE SWEDISH AUTO MAKER IS PINNING MOST OF ITS HOPES FOR A RETURN TO PROFIT NEXT YEAR ON THE NEW SAAB A SMALLER AND MODERATELY PRICED REPLACEMENT FOR THE OLD SAAB 900 MODEL PRODUCED BETWEEN 1978 AND 1993 SAID SWEDISH EQUITY ANALYSTS IN 1992 THE GROUP REPORTED A FULLYEAR LOSS OF 27 BILLION KRONOR 340 MILLION SINCE 1990 WHEN COOWNERS SAABSCANIA AB OF SWEDEN AND GENERAL MOTORS CORP OF THE US SET UP SAAB AUTOMOBILE AS A JOINT VENTURE THE SWEDISH CARMAKING OPERATIONS HAVE ACCUMULATED 81 BILLION KRONOR IN LOSSES TO BREAK EVEN SAAB MUST SELL 80000 CARS A YEAR AND IS ALREADY CLOSE TO THAT LEVEL THROUGH SALES OF ITS 9000 MODELS AND OLD 900 MODELS MR BUTLER WHEELHOUSE SAID THE GROUP EXPECTS TO SELL 20000 NEW SAAB 900S IN THE REMAINDER OF 1993 AND 45000 IN 1994 HE SAID THE NEW SAAB HAS TAKEN ABOUT 3 1/2 YEARS TO DEVELOP AT A COST OF 45 BILLION KRONOR ALTHOUGH SOMEWHAT SHORTER AND STOCKIER THAN ITS PREDECESSOR THE DESIGN OF THE NEW SAAB 900 RESEMBLES THE OLD SAAB 900 MORE THAN THE TOPOFTHELINE SAAB 9000 MR BUTLER WHEELHOUSE CONCEDED THAT THE INTRODUCTION OF THE SAAB 900 COMES AT A BAD TIME NOT ONLY ARE NEW CAR SALES DEPRESSED AROUND THE WORLD BUT COMPETITORS ARE ALSO INTRODUCING MODELS IN THE SAME CLASS HE SAID 9307220101 930722 INTERNATIONAL HUGE FRAUDS HIT CHINA EXSOVIET BLOC CANADA BUSINESSMAN CITED IN SCHEMES INVOLVING BILLIONS IN BANK CREDIT BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG A PORTLY FOREIGNER TURNED UP AT A BANK BRANCH IN NANNING SOUTHERN CHINA LAST YEAR AND MADE A STARTLING OFFER HE WOULD LEND THE BANK 11 BILLION IN RETURN FOR A SIMPLE IOU LIU MINSHAN PRESIDENT OF GUANGXI TRUST & INVESTMENT CORP ACCEPTED THE OFFER IN CHINA'S BREAKNECK ECONOMIC ACCELERATION AN OPPORTUNITY TO LAY HANDS ON FOREIGN CURRENCY WAS TOO GOOD TO PASS UP EVEN IF HIS COMPANY WASN'T SUPPOSED TO BORROW FROM ABROAD HE ISSUED A MASSIVE PROMISSORY NOTE BUT THE LOAN NEVER ARRIVED AND MR LIU RESIGNED LAST MONTH HALFWAY AROUND THE WORLD MORE THAN 15000 POLISH POTATO FARMERS ARE STUCK WITH THE NOTE MR LIU ISSUED THEIR AGENTS ACCEPTED IT AS PAYMENT FOR MOST OF THEIR 1991 POTATO CROP ONLY TO FIND OUT THE NOTE WAS WORTHLESS BEHIND BOTH DEALS SAY BUSINESSMEN IN CHINA AND POLAND IS A 45YEAROLD CANADIAN BUSINESSMAN AND FORMER SMALLTOWN PREACHER ROBERT EARL PALM THEY AND SOME OF THE PEOPLE HE DID BUSINESS WITH SAY MR PALM IS A REMARKABLE PIONEER IN ONE OF THE HOTTEST TRADES TO TOUCH THE FASTEMERGING MARKETS OF THE FORMER SOVIET BLOC AND CHINA FRAUD IN THE CHAOS OF ECONOMIC REFORMS SWEEPING THE COMMUNIST AND EXCOMMUNIST WORLD OPPORTUNITY FOR FRAUD ABOUNDS WESTERN DEMOCRACY HAS COST ME MY LIVELIHOOD A POLISH POTATO FARMER COMPLAINED TO A CANADIAN TELEVISION CREW IN FEBRUARY OTHERS PUT THE BLAME ON MR PALM WHO IS THE TARGET OF AT LEAST THREE LAWSUITS IN THE US AND CANADA MR PALM'S ACTIVITIES ALSO HAVE COME UNDER THE SCRUTINY OF THE US FEDERAL BUREAU OF INVESTIGATION THROUGH HIS LAWYERS AT ASHTON & LYON A BRITISH COLUMBIA FIRM MR PALM REFUSED TO COMMENT FOR THIS ARTICLE LAST MONTH IN WHAT APPEARS TO BE ONE OF THE LARGEST FRAUDS IN CHINA SINCE THE COUNTRY LAUNCHED ITS ECONOMICREFORM PROGRAM IN 1979 THE COUNTRY'S PUBLIC SECURITY BUREAU DISCLOSED THAT IT HAD ARRESTED TWO AMERICANS FRANCISCO HUNG MOY AND RAYMOND LEE THEY ARE SUSPECTED OF PERSUADING OFFICIALS OF A RURAL BRANCH OF AGRICULTURAL BANK OF CHINA TO WRITE 10 BILLION IN FRAUDULENT STANDBY LETTERS OF CREDIT THE COLLATERAL WAS ANOTHER LETTER OF CREDIT ISSUED BY UNITED NATIONAL REPUBLIC BANK OF RUSSIA A BANK THAT OFFICIALS IN MOSCOW SAY DOESN'T EXIST IN RUSSIA AGRICULTURAL BANK SAYS THE MEN IDENTIFIED THEMSELVES AS WORKING FOR MR PALM BY THE TIME MESSRS HUNG MOY AND LEE WERE ARRESTED THOUGH THE LETTERS OF CREDIT WERE IN CIRCULATION SCOTLAND YARD UNCOVERED 22 OF THE CHINESEISSUED LETTERS WITH A SUPPOSED TOTAL VALUE OF 1 BILLION SUGGESTING THAT THE REST OF THE 9 BILLION IN WORTHLESS PAPER ARE FLOATING THROUGH THE WORLD'S FINANCIAL SYSTEM CHINA HAS ISSUED AN INTERNATIONAL WARNING TO BANKERS AGAINST HONORING THE NOTES MR PALM BALDING WITH A FRINGE OF GRAY HAIR DOES BUSINESS FROM AN OFFICE IN AN INDUSTRIAL AREA OF THE BRITISH COLUMBIA CAPITAL OF VICTORIA ON CANADA'S PACIFIC COAST PEOPLE WHO HAVE MET HIM SAY HE SPEAKS INTENSELY ABOUT WHAT HE CALLS THE RELIGIOUS NATURE OF HIS WORK INDEED HE USED TO BE A PENTECOSTAL MINISTER HIS FORMER PARTNERS IN EASTERN EUROPE SPEAK SOMEWHAT LESS INSPIRATIONALLY ABOUT THEIR BUSINESS WITH HIM AMONG THEM IS A UKRAINIAN TRUST COMPANY BATKIVSCHINA WHICH CLAIMS IN A LAWSUIT FILED IN A US DISTRICT COURT IN CALIFORNIA THAT MR PALM AND TWO OTHER MEN OWE IT 311 MILLION IN PAYMENT FOR RUSSIAN CURRENCY THE THREE MEN BOUGHT A FINNISH COMPANY IS SUING MR PALM AND OTHERS IN THE SUPREME COURT OF BRITISH COLUMBIA IN VANCOUVER OVER ANOTHER CURRENCY TRADE THE OWNERS OF MOSCOW'S PARKLAGUNA HOTEL CLAIM THAT MR PALM'S COMPANY OWES 130000 FOR KEEPING AN OFFICE IN THEIR HOTEL BETWEEN AUGUST AND DECEMBER 1992 ONLY PROMISES WE HAVE SAYS SVETLANA LEPESHKOVA FRONT OFFICE MANAGER AT THE HOTEL PROMISES PROMISES PROMISES THAT IS ALL WE TRUSTED THEM BECAUSE AT FIRST THEY PAID INDEED SOME OF HIS FORMER BUSINESS CONTACTS AND THEIR LAWYERS SAY THAT MR PALM IN DEALING WITH EACH OF THEM PUT UP MONEY OR COLLATERAL TO ESTABLISH TRUST THEN GOT CAPITAL ADVANCES FROM THEM APPROPRIATELY MR PALM'S VICTORIABASED COMPANY IS NAMED ADVANCE CAPITAL SERVICES CORP A 1992 PROFILE BY DUN & BRADSTREET CORP BASED IN PART ON INFORMATION FROM ADVANCE CAPITAL DESCRIBES THE COMPANY'S PRINCIPAL BUSINESS TERRITORY AS INTERNATIONAL ADDING THAT IT HAS 200 EMPLOYEES 20 BRANCHES AND 25 SUBSIDIARIES HALF THE COMPANY'S ANNUAL REVENUE OF 18 MILLION IS LISTED AS COMING FROM FOOD WHOLESALING AND 40 FROM LUMBERBROKERING AND METALMINING AND EXPLORATION MR PALM HAS BEEN WITH THE COMPANY OF WHICH HE OWNS 25 SINCE IT INCORPORATED IN 1985 SAYS DUN & BRADSTREET AND IS ITS ONLY DIRECTOR MR PALM FIRST CHECKED INTO MOSCOW'S PARKLAGUNA HOTEL IN AUGUST 1991 AS RUSSIA WAS REELING FROM THE COLLAPSE OF MIKHAIL GORBACHEV'S GOVERNMENT THE SUDDEN END TO CENTRAL PLANNING LEFT RUSSIAN CONSUMERS SCRAMBLING FOR FOOD AND NEW RUSSIAN BUSINESSES SCRAMBLING FOR HARD CURRENCY UNDER SUCH CIRCUMSTANCES A SEEMINGLY WEALTHY WELLCONNECTED WESTERN BUSINESSMAN MIGHT EASILY FIND EAGER RUSSIAN PARTNERS IN DEALING WITH THE UKRAINIAN TRUST BATKIVSCHINA MR PALM SHOWED OFF LETTERS OF REFERENCE PURPORTEDLY FROM SENIOR RUSSIAN GOVERNMENT OFFICIALS SAYS BATKIVSCHINA'S LAWYER PHILIP KAUFLER MR PALM ALSO BOASTED OF HIS COMPANY'S TIES TO UNITED NATIONAL REPUBLIC BANK OF RUSSIA OR UNRB BUT NO SUCH BANK EXISTS IN RUSSIA SAYS THE COUNTRY'S CENTRAL BANK UNRB FINANCIAL STATEMENTS RECEIVED BY HODIMPEX LTD A POLISH CONCERN ARE SIGNED AS AUDITED BY MCIVOR & ASSOCIATES THE VICTORIA ACCOUNTING FIRM THAT AUDITS ADVANCE CAPITAL BUT CANADA'S OFFICE OF THE SUPERVISOR OF FINANCIAL INSTUTITIONS SAYS THE BANK ISN'T AUTHORIZED TO CONDUCT ANY BUSINESS FROM CANADA A BALANCE SHEET ISSUED BY THE BANK SEEMS ABSURDLY LARGE GIVEN UNRB'S OBSCURITY ITS 18895 BILLION IN CLAIMED ASSETS AS OF NOV 1 1991 WOULD PLACE IT AMONG THE WORLD'S 30 BIGGEST BANKS A FINNISH COMPANY ENGINEERING OFFICE BERTEL ECKENGREN LTD ALLEGES IN ITS LAWSUIT THAT IT CONTRACTED WITH MR PALM ADVANCE CAPITAL AND UNRB TO BUY 430 MILLION RUBLES IN EXCHANGE FOR 249 MILLION IN MAY 1992 BUT ECKENGREN SAYS IT RECEIVED ONLY 71 MILLION RUBLES SIMILARLY BATKIVSCHINA CLAIMS IN ITS LAWSUIT THAT IT AGREED WITH MR PALM TO SELL 724 BILLION RUBLES TO A LICHTENSTEIN COMPANY CARTESA FINANCE CORP FOR 311 MILLION IN DECEMBER 1991 WHEN THE DOLLARS HADN'T ARRIVED AT BATKIVSCHINA'S BANK BY MID1992 THE UKRAINIAN COMPANY SAYS MR PALM OFFERED IT 35 MILLION OF STOCK IN CARTESA A COMPANY THE UKRAINIANS SAY WAS ALREADY IN LIQUIDATION BATKIVSCHINA IS SUING CARTESA ADVANCE CAPITAL AND AN INDIANA COMPANY FOR 109 MILLION UNDER US PROVISIONS ALLOWING TRIPLE DAMAGES IN SUITS THAT PROVE ELEMENTS OF RACKETEERING BUT THE SCOPE OF THESE DEALINGS PALES IN COMPARISON TO ACTIVITIES LINKED TO MR PALM IN CHINA SHORTLY AFTER HIS MEETING AT GUANGXI TRUST IN APRIL 1992 ADVANCED CAPITAL APPARENTLY TURNED TO AGRICULTURAL BANK OF CHINA ONE OF CHINA'S FOUR NATIONAL BANKS WHICH HAS A BRANCH IN HENGSHUI A TOWN SOUTHWEST OF BEIJING LIKE GUANGXI TRUST AGRICULTURAL BANK'S HENGSHUI BRANCH ISN'T ALLOWED TO CONDUCT INTERNATIONAL BUSINESS BUT THE BANK SAYS ITS HENGSHUI BRANCH MANAGER WAS OFFERED BY MESSERS HUNG MOY AND LEE A 10 BILLION STANDBY LETTER OF CREDIT FROM UNITED NATIONAL REPUBLIC BANK OF RUSSIA IN EARLY 1993 IN RETURN MESSRS HUNG MOY AND LEE ASKED THE BRANCH TO WRITE 200 SMALLER STANDBY LETTERS OF CREDIT WITH FACE VALUES TOTALING 10 BILLION THE LETTERS WERE WRITTEN AND SIGNED APRIL 1 ALL THE LETTERS OF CREDIT WERE LABELED AS BEING BACKED BY UNITED ASIA GROUP A NEW YORKREGISTERED COMPANY OF WHICH MR HUNG MOY IS PRESIDENT ACCORDING TO AGRICULTURAL BANK IN MAY AGRICULTURAL BANK WARNED BANKS WORLDWIDE NOT TO ACCEPT STANDBY LETTERS OF CREDIT FROM ITS HENGSHUI BRANCH A MONTH EARLIER IT HAD WARNED THEM NOT TO ACCEPT A STANDBY LETTER OF CREDIT FROM ITS BRANCH IN SANYA ON THE ISLAND OF HAINAN THE SANYA LETTER OF CREDIT WAS VALUED AT 80 MILLION WITH A VALIDITY OF 20 YEARS IT LISTED NO BENEFICIARY BUT HODIMPEX A BUDDING FIRM OF POLISH FOOD BROKERS GOT THE WARNING TOO LATE IT HAD STRUCK A DEAL IN FEBRUARY AND MARCH 1992 TO SELL ADVANCE CAPITAL 316 MILLION OF POTATOES AND OTHER FOOD FOR DISTRIBUTION AS HUMANITARIAN AID IN THE FORMER SOVIET UNION THIS WAS THE FIRST CASE FOR OUR COMPANY TO BE INVOLVED IN SUCH BIG BUSINESS SAYS ANDRZEJ JANICKI SENIOR ADVISER TO HODIMPEX'S MANAGEMENT BECAUSE HODIMPEX HAD NEVER HEARD OF ADVANCE CAPITAL IT ASKED DUN & BRADSTREET TO INVESTIGATE ITS CORPORATE AND PAYMENT HISTORY A COPY OF THE DUN & BRADSTREET REPORT RECEIVED BY HODIMPEX INDICATED ADVANCE CAPITAL'S PAYMENTS TENDED TO BE SLOW BY ONLY 11 DAYS SO BETWEEN MARCH 30 AND MAY 18 HODIMPEX SENT 373 MILLION OF FOOD TO THE FORMER SOVIET UNION MAINLY TO BASES OF DEMOBILIZED SOVIET SOLDIERS IT THEN STOPPED THE SHIPMENTS BECAUSE ADVANCE CAPITAL HAD STILL PAID NOTHING ON JUNE 8 ADVANCE CAPITAL TOLD HODIMPEX IT COULD DRAW 125 MILLION FROM THE GUANGXI TRUST PROMISSORY NOTE IT WAS LATER HANDED THE STANDBY LETTER OF CREDIT FROM THE SANYA BRANCH OF THE AGRICULTURAL BANK THE FOOD BROKER LATER DISCOVERED THAT BOTH DOCUMENTS ARE WORTHLESS JULIA LEUNG CONTRIBUTED TO THIS ARTICLE 9307220100 930722 FORGOTTEN KIMONOS SECRET LIVES ARISE IN RACY CLUB ATTIRE TOKYO'S YOUNG WOMEN DANCE THEIR DREAM OF REBELLION IN BUSTIERS AND SPIKE HEELS BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AIKO IIDA WORKS ALL WEEK LONG AT A HUMDRUM JOB IN A COOKIE FACTORY SHROUDED IN THE SAME PLAIN WHITE SMOCK AS EVERYBODY ELSE ON SUNDAY NIGHTS THOUGH THE 19 YEAR OLD SHEDS HER COOKIECUTTER CONFORMITY AFTER SQUEEZING INTO A GLITTERY ORANGE ULTRASHORT DRESS MS IIDA HEADS FOR A DISCO CALLED JULIANA'S TOKYO WHERE AMID MORE CONVENTIONAL DANCING FOR COUPLES SHE AND A HORDE OF OTHER GIRLS SHAKE THEIR HIPS ATOP A THREEFOOTHIGH STAGE RESERVED EXPRESSLY FOR SCANTILY CLAD WOMEN AS THE BEAT POUNDS THE YOUNG WOMEN SMILE BLANKLY AND WAVE FEATHERED FANS AT A THRONG OF SUITED YOUNG MEN WHO GAWK UP AT THEM FROM BELOW THIS IS TO EMPHASIZE MY BREASTS SAYS MS IIDA ADJUSTING THE TOP OF HER BUSTIER AFTER A DANCE I JUST LOVE HOW EVERYONE LOOKS AT ME THESE DAYS MANY JAPANESE WOMEN ARE TRYING TO EXPOSE THEIR WAY OUT OF SOCIETY'S CONFINING FEMALE MOLDS DECKED OUT IN BODYCON OR SKINTIGHT BODY CONSCIOUS DRESSES ORDINARY WOMEN ARE APPEARING ON TV SHOWS TO COMPETE IN SEXINESS CONTESTS EVEN ELEMENTARYSCHOOL GIRLS AND SEXY MOMMIES IN THEIR FORTIES JOIN IN SOME SHOW ALL STUDIO WHITE ROOM A PHOTO STUDIO NEAR TOKYO SAYS WOMEN ARE SHELLING OUT THE EQUIVALENT OF ABOUT 500 TO HAVE NUDE PHOTOS TAKEN WHY THE CHEESECAKE IN A CONFORMIST SOCIETY WHERE WOMEN STILL PLAY SECOND FIDDLE TO MEN AND HAVE FEW OPPORTUNITIES TO SHINE OUTSIDE THE HOME STRUTTING YOUR STUFF HAS BECOME AN OUTLET FOR THE FRUSTRATION SIMMERING INSIDE MANY THEY WANT TO BECOME A SOMEBODY BUT THEY DON'T KNOW HOW SAYS MARI MIZUNO A WRITER STUDYING FEMALE ATTITUDES TOWARD SEX SO MANY WOMEN ARE STRETCHING JAPANESE NOTIONS OF FEMALE SEXUALITY MEN HERE GENERALLY PREFER THEIR WOMEN CUTE NOT SEXY BARING THE BODY BEFORE MALE ONLOOKERS SERVES AS A DECLARATION OF DEVIATION PARADING IN RISQUE GARB SHOWS YOU HAVE GUTS OR AT LEAST CONFIDENCE IN YOUR LOOKS AND ALL THE ATTENTION PROVIDES A QUICK SHOT OF SELFESTEEM SUDDENLY THERE IS A STAGE FOR THIS MINIREBELLION AND IT IS CENTERED AT JULIANA'S I HATE THE WAY MY MALE BOSSES TREAT ME SO CASUALLY BECAUSE I'M A WOMAN SAYS JULIANA'S REGULAR REIKO YAMADA A 21YEAROLD SECRETARY AT A FOOD COMPANY THEY CONSTANTLY TELL HER TO MAKE TEA AND PHOTOCOPIES AND CRACK SEXIST JOKES TO BOOT SHE SAYS SO A FEW EVENINGS A MONTH SHE CHANGES OUT OF HER DRAB COMPANY UNIFORM AND INTO A TIGHTFITTING FAUX LEOPARDSKIN DRESS FOR AN EVENING ATOP THE STAGE DURING THE DAY I WORK QUIETLY PRETENDING I'M NOT UP TO ANYTHING EXCITING SAYS MS YAMADA COMBING HER LONG TOUSLED HAIR AS SHE WALKS OUT OF THE DISCO BUT I SECRETLY SMILE TO MYSELF AND SAY THIS IS NOT THE SAME ME AS IN THE EVENINGS MACHIKO SHIOBE A 19YEAROLD DEPARTMENTSTORE CLERK SAYS PEOPLE EXPECT WOMEN LIKE HERSELF TO SMILE MEEKLY AT CUSTOMERS AND SILENTLY OBEY THEIR WHIMS USUALLY I'M HIDING ALL THIS TENSION INSIDE MYSELF SHE SAYS NOT TONIGHT SHE IS IN HER GOLD SPIKEHEEL DANCING SHOES AND A SHINY BLACK DRESS THE BODY MANIA BEGAN HEATING UP TWO YEARS AGO WHEN WELLKNOWN TEEN ACTRESS RIE MIYAZAWA SHOCKED JAPAN BY PUBLISHING A BOOK OF NUDE PHOTOS OF HERSELF AND CONFIDENTLY PRONOUNCING THAT THERE IS NOTHING WRONG WITH FLAUNTING A BEAUTIFUL BODY SHORTLY AFTERWARD MORE THAN A THOUSAND YOUNG WOMEN SENT RESUMES TO THE FASHION MAGAZINE ANAN IN HOPES OF HAVING THEIR NUDES FEATURED IN ITS PAGES JULIANA'S WHICH OPENED TWO YEARS AGO NOW DRAWS 1500 REVELERS A NIGHT ON WEEKENDS AND HAS SPAWNED IMITATOR CLUBS THE JULIANA'S GIRLS MAY BE PUSHING A MORE ASSERTIVE FEMININITY BUT THEY STOP FAR SHORT OF WAGING FEMINIST REVOLUTION THE DANCERS SEEM MORE INTERESTED IN THUMBING THEIR NOSE AT PATRIARCHAL JAPAN THAN IN CARVING OUT A NEW ROLE FOR THEMSELVES IN SOCIETY MOST SAY THEIR ULTIMATE GOAL IS TO MARRY AND HAVE KIDS MS YAMADA THE SECRETARY SAYS SHE HAS NO PLANS TO BUILD A CAREER OR FURTHER HER EDUCATION WHATEVER FOR SHE SAYS WRINKLING HER BROW THAT KIND OF LONGTERM EFFORT IS FOR PEOPLE WHO'VE GIVEN UP ON MARRIAGE COOKIEMAKER MS IIDA SAYS WHAT SHE REALLY WANTS IN LIFE IS A SERIOUS BOYFRIEND WHO WILL TAKE HER TO THE BEACH CURIOUSLY MOST OF THE YOUNG WOMEN STRIVING TO STRUT THEIR INDIVIDUALITY WILL DO SO ONLY AS PART OF A CROWD A CLASSICALLY JAPANESE INCLINATION THE SCENE AT JULIANA'S IS TYPICAL HUNDREDS WEAR THE SAME KIND OF STRETCHY SHORTSHORT DRESSES CARRY THE SAME FANS A JULIANA'S TRADEMARK AND SWING THE SAME WAY TO THE MUSIC I WANT TO STAND OUT TO THE OUTER LIMIT SAYS MAHOKO SUZUKI 19 WEARING A SEQUINED BLACK CORSET AND A SKIRT THE SIZE OF A HAND TOWEL BUT THE STUDENT ADMITS SHE IS TOO EMBARRASSED TO BE SEEN AROUND TOWN IN THE GETUP SO LIKE MOST JULIANA'S GIRLS SHE CHANGES AT THE TRAIN STATION EN ROUTE TO THE CLUB SHE SAYS SHE DRESSES THIS WAY JUST FOR SHOW AND ISN'T THERE TO BE PICKED UP I DON'T TALK TO THE GUYS SHE SAYS I'M CONCENTRATING ON THE DANCING SO RIGID IS THE CODE FOR SEDUCTIVE ATTIRE THAT A TV NETWORK RECENTLY AIRED A LATENIGHT SHOW IN WHICH A JULIANA'S WOULDBE FROM THE BURBS GOT MINUTE INSTRUCTIONS FOR HER DEBUT AT THE CLUB A VETERAN CLUBBER GAVE HER DRESSFOREXCESS TIPS AND TAUGHT HER HOW TO WAVE THE FAN USE BIG SWINGING MOTIONS TWO ABOVE THE WAIST TWO BELOW THE YOUNG MEN WHO HANG OUT AT JULIANA'S FEIGN NONCHALANCE ABOUT THE MASS EXHIBITIONISM IF THEY WANT TO DANCE LIKE THIS LET THEM DO AS THEY LIKE SAYS HIROSHI AOKI A 23YEAROLD APPAREL COMPANY WORKER I'M NOT HERE TO PICK UP GIRLS HE SAYS BUT HE CONCEDES HE CRUISES THROUGH THE CLUB AT LEAST TWICE A WEEK A CROWD OF MEN OPENLY ON THE PROWL CALLED GETTERS STAND OUTSIDE THE CLUB BY THEIR PARKED CARS AND MAKE BETS ON WHETHER THEY WILL GET A DATE JULIANA'S WHICH STANDS NEXT TO A BOWLING ALLEY IN A GRUNGY WAREHOUSE DISTRICT ISN'T EXACTLY ON THE CUTTING EDGE THE THUMPING MUSIC DOESN'T INFLUENCE THE POP CHARTS IT FOLLOWS THEM THE HUGE CHANDELIER HANGING ABOVE THE MIDDLE OF THE DANCE FLOOR IS STRAIGHT OUT OF THE LONGGONE 1980S THE CLUB TAMELY CLOSES AT MIDNIGHT BUT THE PARTY IS GETTING WILDER BY THE MINUTE AT AIKODO CORP A BOUTIQUE SPECIALIZING IN CLOTHES JUST FOR THE JULIANA'S CROWD THE SKIRTS ARE GETTING SHORTER AND SHORTER AND REGULAR BODYCON CLOTHES ARE NOW REGARDED AS TOO CONSERVATIVE WE HAVE TO KEEP ORDERING SMALLER SKIRTS SAYS NORIKO KAMIYAMA A SALES CLERK IN THE END THEY DON'T EVEN CARE IF THEIR UNDERWEAR SHOWS EVEN AT JULIANA'S THERE ARE LIMITS THOUGH ON A RECENT FRIDAY NIGHT MISAO OKISHIMA 21 ANGRILY BURSTS INTO THE DISCO'S BATHROOM AND SLAMS HER FAN ON A CHAIR THE BOUNCERS SHE SAYS FORBADE HER TO PRANCE IN HER FAVORITE OUTFIT THIS IS WHAT I WANT TO DANCE IN SAYS THE JULIANA'S REGULAR HITCHING UP HER SHINY BLUE MINISKIRT TO FLASH HER BLUE VINYL UNDERWEAR 9307220099 930722 BUSINESS BRIEF COMINCO LTD CANADIAN COMPANY WILL CUT MORE WORKERS AT TRAIL UNIT COMINCO LTD PLANS TO CUT AN ADDITIONAL 190 UNIONIZED EMPLOYEES AT ITS TRAIL REFINING AND SMELTING OPERATIONS THROUGH EARLY RETIREMENT OR JOB ELIMINATIONS COMINCO WHICH LAST MONTH ANNOUNCED PLANS TO RELEASE 95 EMPLOYEES EFFECTIVE NEXT TUESDAY SAID THE NEW ROUND OF LAYOFFS BRINGS TOTAL JOB CUTS AT THE TRAIL OPERATIONS TO 285 EMPLOYEES THIS YEAR THE NEW LAYOFFS WILL TAKE EFFECT IN NOVEMBER IT SAID MANAGEMENT POSITIONS ALSO WILL BE CUT MOSTLY THROUGH EARLY RETIREMENT A SPOKESMAN SAID IN VANCOUVER BRITISH COLUMBIA THAT COMINCO HASN'T YET QUANTIFIED THE EXPENSES ASSOCIATED WITH THE JOB CUTS BUT SAID THE MEASURES WILL SAVE THE TRAIL OPERATION ABOUT 10 MILLION CANADIAN DOLLARS US78 MILLION ANNUALLY HE SAID THE CUTS ARE PART OF A PLAN TO RETURN THE ZINC AND LEAD SMELTING COMPLEX AT TRAIL TO PROFITABILITY BY SLASHING EXPENSES 9307220098 930722 ABREAST OF THE MARKET INDUSTRIALS CLIMB TO NEW HIGH BUT OTHER GAUGES FINISH LOWER BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE CREPT TO A NEW HIGH ON A LATE FLURRY OF PROGRAMGUIDED BUY ORDERS BUT OTHER STOCK MARKET MEASURES LAGGED PROMPTING SOME STRATEGISTS TO DISMISS THE INDUSTRIAL AVERAGE'S PERFORMANCE AS UNCONVINCING THE INDUSTRIALS GAINED 1062 POINTS TO 355540 EDGING PAST ITS OLD RECORD OF 355483 IN THE FINAL FEW MINUTES OF TRADING STANDARD & POOR'S 500STOCK INDEX LOST 013 TO 44718 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 011 TO 24760 BOTH MEASURES REMAIN WELL BELOW THEIR ALLTIME HIGHS I DON'T THINK THE DOW IS SENDING THE RIGHT MESSAGE SAID DAVID SHULMAN STOCK MARKET STRATEGIST AT SALOMON BROTHERS THE QUESTION NOW IS WHETHER THE BROADER MARKET CATCHES UP OR THE DOW ROLLS OVER RISING INTEREST RATES DRAGGED STOCKS LOWER FOR MOST OF THE SESSION BUT SOME POSITIVE EARNINGS REPORTS PROMPTED INVESTORS TO RETURN TO THE MARKET LATE IN THE DAY AND SCOOP UP SHARES EVEN THOUGH THE DOW INDUSTRIALS MANAGED TO SHRUG OFF THE WEAKNESS IN BONDS MR SHULMAN DOUBTS IT WILL BE ABLE TO DO THE SAME TODAY I THINK THE STOCK MARKET WILL LOOK OVER ITS SHOULDER AT THE BOND MARKET AND IF THE BOND MARKET ISN'T THERE I THINK THE DOW WILL FALL OFF ITS HIGH HE SAID BUT GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG ISN'T SO SURE MS DUDACK SAID THE QUESTION SHE REPEATEDLY HEARD YESTERDAY WAS WHY ARE STOCKS CLIMBING EVEN THOUGH THE BOND MARKET IS SLUMPING SHE SAID SHE SUSPECTS THAT STOCK INVESTORS WERE WAITING FOR SOME EARLY SIGN OF WHAT SECONDQUARTER EARNINGS WOULD LOOK LIKE BEFORE THEY PLACED ANY FIRM BETS ON THE MARKET AND NOW THAT THERE APPEAR TO BE MORE POSITIVE EARNINGS SURPRISES THAN NEGATIVE ONES INVESTORS ARE WILLING TO DEPLOY THEIR MONEY SELECTIVELY MS DUDACK SAID SHE IS ENCOURAGED BY THE MARKET'S RECENT PATTERN OF OPENING ON A WEAK NOTE AND FINISHING UP IN POSITIVE TERRITORY TO ME THAT'S A SIGN OF STRENGTH SHE SAID IT SHOWS THAT THERE IS MONEY OUT THERE WAITING TO BUY ON WEAKNESS ON THE BIG BOARD DECLINING ISSUES BEAT ADVANCERS 1051 TO 923 VOLUME TOTALED 253300000 SHARES DOWN FROM 275120000 TUESDAY AN ONTARGET REPORT WAS ENOUGH TO SEND SHARES OF COMPAQ COMPUTER SHARPLY HIGHER THE STOCK JUMPED 3 3/8 TO 49 ON HEAVY VOLUME OF 29 MILLION SHARES AFTER THE HOUSTONBASED CONCERN MANAGED TO AVOID AN EARNINGS DISAPPOINTMENT SOMETHING OTHER MAJOR COMPUTER MAKERS HAVEN'T BEEN ABLE TO DO THIS QUARTER THE COMPANY REPORTED EARNINGS OF 121 A SHARE FOR THE SECOND QUARTER WELL ABOVE THE 35 CENTS PROFIT IT POSTED A YEAR AGO ITS SALES JUMPED TO 16 BILLION FROM 827 MILLION COLGATEPALMOLIVE FELL 2 1/2 TO 50 3/4 DESPITE POSTING SECONDQUARTER NET INCOME OF 86 CENTS A SHARE AGAINST 75 CENTS A YEAR EARLIER ANALYSTS HAD BEEN EXPECTING EARNINGS OF 85 CENTS THE HOUSEHOLD PRODUCTS CONCERN SAID ITS USBASED SALES FELL 6 WHILE UNIT SALES SLIPPED 4 JOHNSON & JOHNSON SKIDDED 1 1/2 TO 38 1/4 AFTER THE DRUG AND PERSONAL PRODUCTS MAKER REPORTED SECONDQUARTER NET INCOME OF 75 CENTS A SHARE THAT WAS UP FROM THE 68 CENTS OF A YEAR AGO BUT BELOW THE 77 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM YORK INTERNATIONAL LOST 4 5/8 TO 34 1/8 PRUDENTIAL SECURITIES CUT ITS 1993 PERSHARE EARNINGS ESTIMATE FOR THE MAKER OF HEATING AND COOLING EQUIPMENT TO 205 FROM 215 AND ITS 1994 ESTIMATE TO 250 FROM 260 THE BROKERAGE FIRM CITED TOUGH FOREIGNCURRENCY TRANSLATIONS AND MARKET SHARE LOSSES ALTHOUGH LATE TUESDAY YORK REPORTED SECONDQUARTER NET INCOME OF 70 CENTS A SHARE COMPARED WITH EARNINGS FROM OPERATIONS OF 63 CENTS A YEAR AGO NORTHERN TELECOM SLUMPED 1 5/8 TO 22 7/8 AFTER IT REPORTED A SECONDQUARTER LOSS OF 413 A SHARE COMPARED WITH NET INCOME OF 28 CENTS A YEAR EARLIER THE LATEST SECONDQUARTER RESULTS INCLUDED 12 BILLION IN CHARGES PARTLY TIED TO RESTRUCTURING AMERICAN DEPOSITARY RECEIPTS OF TIPHOOK PLC JUMPED 1 TO 10 5/8 ON BIG BOARDLEADING VOLUME OF THREE MILLION SHARES TRADERS CITED SPECULATION THAT TRANSAMERICA IS CONSIDERING A PURCHASE OF THE UK TRANSPORTATION CONCERN A SPOKESMAN FOR TRANSAMERICA DECLINED TO COMMENT ON THE TALK TIPHOOK OFFICIALS COULDN'T BE REACHED TERRA INDUSTRIES ADDED 5/8 TO 4 1/2 MERRILL LYNCH RAISED ITS INTERMEDIATETERM RATING ON THE STOCK TO ABOVE AVERAGE FROM NEUTRAL THE MAKER OF CROPPROTECTION PRODUCTS POSTED SECONDQUARTER NET INCOME OF 57 CENTS A SHARE COMPARED WITH EARNINGS FROM CONTINUING OPERATIONS OF 42 CENTS A YEAR EARLIER INDRESCO SANK 2 TO 10 3/8 AFTER SMITH BARNEY HARRIS UPHAM CUT ITS INVESTMENT RATING ON THE STOCK TO NEUTRAL FROM BUY THE BROKERAGE FIRM CITED INDRESCO'S SALE OF PART OF ITS STAKE IN ITS KOMATSU DRESSER CO JOINT VENTURE TO KOMATSU LTD WATKINS JOHNSON MORE THAN TRIPLED ITS SECONDQUARTER EARNINGS FROM LAST YEAR'S POSTING NET INCOME OF 33 CENTS A SHARE COMPARED WITH 10 CENTS A YEAR AGO THE STOCK JUMPED 1 7/8 TO 19 3/8 UNIFI TUMBLED 4 1/8 TO 25 3/4 AFTER REPORTING FOURTHQUARTER NET INCOME OF 50 CENTS A SHARE ANALYSTS HAD BEEN PROJECTING EARNINGS OF ABOUT 53 CENTS PACIFIC WESTERN BANCSHARES LOST 1/2 TO 6 1/2 IT HAD SECONDQUARTER EARNINGS OF THREE CENTS A SHARE COMPARED WITH EIGHT CENTS A YEAR AGO HANDLEMAN CO SAID IT EXPECTS TO POST A FISCAL FIRSTQUARTER LOSS OF BETWEEN EIGHT CENTS AND 12 CENTS A SHARE AS SALES FOR THE QUARTER ENDING JULY 31 FALL 10 TO 12 FROM THE YEARAGO FIRST QUARTER THAT NEWS SENT THE STOCK DOWN 1 3/4 TO 11 1/8 ALLIANCE CAPITAL ROSE 1 3/8 TO 22 ITS PRESIDENT AND CHIEF OPERATING OFFICER JOHN CARIFA SAID ALLIANCE EXPECTS TO RETURN TO DOUBLEDIGIT GROWTH IN PART BECAUSE SALES HAVE GAINED MOMENTUM REDEMPTIONS IN ITS MUTUAL FUND BUSINESS HAVE SLOWED AND THE COMPANY IS WINNING NEW INSTITUTIONAL BUSINESS 9307220097 930722 AUTOPSY OF A RIOT BY ERIC BREINDEL A LONG ANTICIPATED OFFICIAL REPORT ON THE 1991 ANTISEMITIC RIOT IN BROOKLYN'S CROWN HEIGHTS NEIGHBORHOOD WAS PRODUCED TUESDAY AT THE BEHEST OF NEW YORK GOV MARIO CUOMO BY HIS STATE CRIMINAL JUSTICE DIRECTOR RICHARD GIRGENTI THE 600PAGE STUDY IS A COGENT INDICTMENT OF NEW YORK CITY'S FAILURE TO QUELL THE MOST EXTENSIVE RACIAL UNREST FACED BY THE CITY IN MORE THAN 20 YEARS THE IMPORTANCE OF THE ISSUE IS MANIFEST UNCHECKED URBAN RACE RIOTS COULD WELL SOUND THE DEATH KNELL OF THE AMERICAN CITY YET AS BROOKLYN BLACKS ATTACKED HASIDIC JEWS OVER A FOURDAY PERIOD IN THE SUMMER OF 1991 THE CITY GOVERNMENT HEADED BY DAVID DINKINS NEW YORK'S FIRST BLACK MAYOR ESSENTIALLY AVERTED ITS EYES THIS IS A KEY CONCLUSION OF THE REPORT AMERICANS AND NEW YORKERS IN PARTICULAR HAVE GOTTEN USED TO LIVING WITH PHENOMENA THEY WOULD HAVE DEEMED INTOLERABLE NOT TOO LONG AGO HIGH CRIME RATES STREETS FILLED WITH LUNATICS UNSAFE SCHOOLS AND ALL THE REST SEN DANIEL PATRICK MOYNIHAN HAS DESCRIBED THE PSYCHOLOGICAL ADJUSTMENT REQUIRED TO LIVE AMIDST SUCH CONDITIONS AS DEFINING DEVIANCY DOWN BUT ALLOWING AN ANTISEMITIC RIOT IN THE HEART OF THE NATION'S PREEMINENT CITY BESPEAKS AN OFFICIAL NEGLIGENCE THAT GOES BEYOND THE PALE THUS AN AUTOPSY OF THE CROWN HEIGHTS EPISODE WAS ESSENTIAL MR GIRGENTI PLACES SIGNIFICANT BLAME ON FIELD POLICE COMMANDERS WHO REFUSED TO DEVIATE FROM DEMONSTRABLY UNSUCCESSFUL TACTICS HE ALSO FAULTS FORMER POLICE COMMISSIONER LEE BROWN NOW PRESIDENT CLINTON'S DRUG CZAR FOR MISAPPREHENDING THE URGENCY OF THE CRISIS BUT THE REPORT RECOGNIZES MAYOR DINKINS'S ULTIMATE RESPONSIBILITY IT CRITICIZES THE MAYOR IN UNMISTAKABLY FIRM TERMS FOR HIS APPARENT INABILITY OVER THE COURSE OF NEARLY THREE FULL DAYS TO SEE THAT THE MOST SERIOUS RACIAL DISTURBANCE IN THE RECENT HISTORY OF THE CITY WAS UNDER WAY AND GETTING WORSE MR GIRGENTI DEMONSTRATES THAT MR DINKINS RECEIVED AMPLE AND RELIABLE INFORMATION TO THIS EFFECT FROM THE CITY HALL POLICE DESK FROM THE MEDIA AND FROM PRIVATE CITIZENS ALTHOUGH A NUMBER OF TOP CITY HALL AIDES MANIFESTED ASTONISHING MEMORY GAPS WHEN TESTIFYING BEFORE MR GIRGENTI IT REMAINS CLEAR THAT THE MAYOR KNEW EVERYTHING HE NEEDED TO KNOW EARLY ON IT IS TRUE THAT MR GIRGENTI RECORDS AN UNENDING SERIES OF BUREAUCRATIC BUNGLES AND COMMUNICATIONS FOULUPS BUT THE BOTTOM LINE IS THAT EVERY NEW YORKER WITH A TV SET KNEW THAT A VIOLENT ANTISEMITIC RIOT WAS IN PROGRESS IN CROWN HEIGHTS THAT THE POLICE WERE IN RETREAT THAT MANY JEWS AND MANY COPS HAD BEEN INJURED AND THAT LOTS OF OTHERS WERE IN DIRE DANGER NO SPECIAL INTELLIGENCE WAS REQUIRED TO GLEAN THIS INFORMATION YANKEL ROSENBAUM HAD ALREADY BEEN STABBED BY A MOB SHOUTING ANTISEMITIC EPITHETS INSOFAR AS THE MAYOR KNEW EVERYTHING HE NEEDED TO KNOW EARLY ON HIS FAILURE TO RESPOND DECISIVELY INVITES AN OBVIOUS QUESTION WHY DIDN'T HE ACT THE REPORT DOESN'T ADDRESS THIS ISSUE WHICH GOES BEYOND MR GIRGENTI'S BRIEF HIS TASK WAS TO RECONSTRUCT THE RIOT NOT TO EXAMINE MOTIVATION STILL THE WHY QUESTION ADMITS TO BUT A LIMITED SET OF ANSWERS ONE OF COURSE IS GROSS INCOMPETENCE BORDERING ON NEGLIGENCE BY THIS READING THE MAYOR SIMPLY IGNORED EVERY INDICATION THAT THE SITUATION IN CROWN HEIGHTS WAS OUT OF CONTROL BETRAYING A STUNNING LACK OF CURIOSITY HE RELIED ON INCOMPLETE AND INACCURATE REPORTS FROM POLICE OFFICIALS AND POLITICAL AIDES ALL OF WHOM FAILED TO TELL HIM THE TRUTH ALL OF WHOM ELECTED TO TELL HIM THAT EVERYTHING WAS UNDER CONTROL A SECOND INTERPRETATION TURNS ON POLITICAL CONSIDERATIONS MR DINKINS RELUCTANT TO USE FORCE AGAINST BLACK NEW YORKERS LEST HE ANTAGONIZE HIS ELECTORAL BASE BURIED HIS HEAD IN THE SAND AND HOPED THAT THE VIOLENCE WOULD SOMEHOW PETER OUT FINALLY THERE'S THE POSSIBILITY THAT THE MAYOR WAS UNABLE TO EMPATHIZE WITH THE FEARFUL HASIDIC JEWS OF CROWN HEIGHTS NOTWITHSTANDING HIS REPEATED EFFORT TO DEPICT NEW YORK AS A GORGEOUS MOSAIC BEFORE DISMISSING THIS INTERPRETATION IT'S WELL TO CONSIDER HOW THE CITY WOULD HAVE RESPONDED IF WHITE GANGS HAD RAMPAGED THROUGH HARLEM FOR THREE DAYS SHOUTING RACIAL EPITHETS MURDERING UNARMED STUDENTS AND ATTACKING BLACKS AT RANDOM OBVIOUSLY NONE OF THE THREE READINGS INSPIRES CONFIDENCE BUT IT'S FAR LESS DISTRESSING TO FIX THE BLAME ON INCOMPETENCE AND NEGLIGENCE THIS READING AFTER ALL LIMITS THE FAILURE TO A SINGLE EPISODE CROWN HEIGHTS THE TWO ALTERNATIVE INTERPRETATIONS LACK OF EMPATHY FOR BESIEGED HASIDIM AND THE MAYOR'S RELUCTANCE TO ALIENATE HIS BASE BY TURNING THE COPS ON HIS OWN HAVE BROADER IMPLICATIONS FOR THE GOVERNANCE OF NEW YORK AND PERHAPS OTHER AMERICAN CITIES WHERE SIMILAR INCIDENTS MIGHT TAKE PLACE A WORD ABOUT MR GIRGENTI'S PUBLIC PRESENTATION OF THE REPORT HIS PRESS CONFERENCE LEFT A GOOD DEAL TO BE DESIRED INDEED IT SUGGESTED THAT EVEN LAW ENFORCEMENT PROFESSIONALS AREN'T IMMUNE FROM THE VIRUS OF POLITICAL CORRECTNESS MR GIRGENTI APPARENTLY FOUND IT NECESSARY TO AVOID ANY REFERENCE TO BLACK ANTISEMITISM HE DISCUSSED CRIMINAL ACTS IN AN ALMOST SANITIZED FASHION NEVER NOTING THAT VIRTUALLY ALL THE ACTS IN QUESTION WERE ASSAULTS ON JEWS BY BLACKS THE CRIMINAL JUSTICE DIRECTOR ALSO ANNOUNCED HIS DECISION TO DEDICATE THE CROWN HEIGHTS REPORT TO THE MEMORIES OF GAVIN CATO AND YANKEL ROSENBAUM CATO A BLACK CHILD WAS FATALLY INJURED WHEN A CAR DRIVEN BY A MEMBER OF THE HASIDIC COMMUNITY ACCIDENTALLY STRUCK HIM HIS DEATH OSTENSIBLY TRIGGERED THE POGROM MR ROSENBAUM OF COURSE WAS CHASED AND STABBED IN THE EARLY HOURS OF THE RIOT BY MEMBERS OF A BLACK MOB SHOUTING GET THE JEW CATO'S DEATH WAS AN ACCIDENT ONE OF THE MANY LETHAL CAR ACCIDENTS THAT TAKE PLACE IN CROWN HEIGHTS ANNUALLY IN THE YEAR PRIOR TO GAVIN CATO'S DEATH THERE WERE 22 BUT ALL INVOLVED BLACK DRIVERS THUS NONE PROVOKED RIOTS YANKEL ROSENBAUM A DEFENSELESS YOUNG SCHOLAR VISITING NEW YORK FROM AUSTRALIA TO CONDUCT RESEARCH ON ASPECTS OF THE HOLOCAUST WAS IN EFFECT LYNCHED LINKING THEIR NAMES AS DID MR GIRGENTI FOSTERS AN ESPECIALLY INSIDIOUS VARIETY OF MORAL EQUIVALENCE THE OBVIOUS IMPLICATION IS THAT THE CROWN HEIGHTS RIOT SAW TWO DIFFERING COMMUNITIES ENGAGE IN HEADON STRIFE IN REALITY THIS WAS A CASE IN WHICH MEMBERS OF A DOMINANT GROUP THE BLACKS SEIZED ON AN ACCIDENT AS AN EXCUSE TO ATTACK A VULNERABLE ETHNIC MINORITY LIVING IN ITS MIDST THE CROWN HEIGHTS RIOT WAS NO MORE A BATTLE BETWEEN TWO GROUPS WITH LEGITIMATE GRIEVANCES THAN WERE THE KU KLUX KLANORGANIZED ASSAULTS ON BLACKS THAT TOOK PLACE THROUGHOUT THE SOUTH AND THE MIDWEST IN THE FIRST DECADES OF THIS CENTURY MR GIRGENTI UNFORTUNATELY ALSO SPENT TOO MUCH TIME DURING HIS PRESS APPEARANCE AND IN THE REPORT ITSELF SHOOTING DOWN AN UTTER STRAW MAN THE CHARGE THAT MAYOR DINKINS ISSUED A FORMAL ORDER INSTRUCTING POLICE TO REFRAIN FROM QUELLING THE RIOT NO SERIOUS OBSERVER EXPECTED MR GIRGENTI TO DISCOVER A SMOKING GUN IN THIS REALM INDEED IT IS THE MAYOR HIMSELF WHO REGULARLY AIRS THE ACCUSATION SIMPLY IN ORDER TO DENY IT MR GIRGENTI WOULD ALSO HAVE DONE WELL TO REFRAIN FROM EMPLOYING PHRASES LIKE ROOT CAUSES IN DISCUSSING THE CROWN HEIGHTS POGROM IN SO DOING HE APPEARS TO IMPUTE LEGITIMACY TO THOSE INCLINED TO OFFER SOCIOLOGICAL APOLOGIA FOR YANKEL ROSENBAUM'S LYNCHING STILL A WEAK PUBLIC PRESENTATION SHOULDN'T DETRACT FROM THE IMPORTANCE OF MR GIRGENTI'S STUDY HE EXAMINES FOUR DAYS DURING WHICH A MAN WAS LYNCHED MORE THAN 80 OTHER JEWS SUFFERED PHYSICAL INJURIES AT THE HANDS OF RACIST RIOTERS ONE PETRIFIED WOMAN EXPERIENCED A MISCARRIAGE AND SOME 100 POLICE OFFICERS WERE HURT MR GIRGENTI ALSO DEMONSTRATES THAT LEMRICK NELSON DESPITE HIS ACQUITTAL WAS ALMOST CERTAINLY A MEMBER OF THE MOB THAT ATTACKED YANKEL ROSENBAUM THAT MR ROSENBAUM WAS MURDERED BECAUSE HE WAS A JEW ISN'T IN DISPUTE THUS MR GIRGENTI OPENS THE WAY FOR A FEDERAL CIVILRIGHTS INVESTIGATION OF THE ROSENBAUM MURDER INDEED HIS STUDY IMPLICITLY DEMANDS THAT THE JUSTICE DEPARTMENT INITIATE SUCH A PROBE IN THE END RICHARD GIRGENTI DID A STELLAR JOB PERFORMING THE AUTOPSY ORDERED BY GOV CUOMO ADMINISTERING JUSTICE WAS NEVER WITHIN HIS PURVIEW THUS JUSTICE WHICH CLEARLY WASN'T DONE IN NEW YORK WILL HAVE TO COME FROM WASHINGTON THE BALL IS NOW IN ATTORNEY GENERAL JANET RENO'S COURT MR BREINDEL IS EDITORIAL PAGE EDITOR OF THE NEW YORK POST 9307220096 930722 US IS INVESTIGATING APPARENT SUICIDE OF CLINTON LEGAL AIDE VINCENT FOSTER BY JAMES M PERRY AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CIRCUMSTANCES BEHIND THE DEATH OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER JR REMAIN CLOUDED AND HIS OFFICES WERE SEALED AS PART OF AN INVESTIGATION BEING COORDINATED BY THE JUSTICE DEPARTMENT MR FOSTER ONE OF THE PRESIDENT'S AND HILLARY RODHAM CLINTON'S OLDEST AND CLOSEST FRIENDS AND A ONETIME LAW PARTNER OF MRS CLINTON WAS FOUND SLUMPED AGAINST A CANNON IN WHAT WAS ONCE A CIVIL WAR FORT ABOUT 6 PM TUESDAY THE REVOLVER THAT KILLED HIM WAS STILL IN HIS HAND PARK SERVICE INVESTIGATORS SAID THE 48YEAROLD MR FOSTER APPARENTLY COMMITTED SUICIDE HE HAD LEFT HIS OFFICE AT 1 PM AFTER LUNCHING AT HIS DESK TELLING ASSOCIATES HE WOULD BE BACK LATER HE APPARENTLY DROVE TO THE LONELY PARK IN VIRGINIA ACROSS THE POTOMAC RIVER FROM HIS HOME IN GEORGETOWN WALKED 200 YARDS TO THE OLD CANNON AND SHOT HIMSELF IN THE HEAD NO NOTE WAS FOUND OFFICIALS SAID SOME OF HIS ASSOCIATES SAID HE HAD SEEMED OUT OF SORTS AND MAYBE A LITTLE DEPRESSED IN THE PAST WEEK OR SO BUT THEY WERE STUNNED BY THE REPORTS THAT HE HAD TAKEN HIS LIFE THERE IS REALLY NO WAY TO KNOW WHY THESE THINGS HAPPEN A GRIEVING PRESIDENT CLINTON TOLD REPORTERS IN A BRIEF SESSION IN THE WHITE HOUSE ROSE GARDEN THE WHITE HOUSE SAID THE INVESTIGATION WOULD BE COORDINATED BY PHILIP HEYMANN THE DEPUTY ATTORNEY GENERAL THE DEATH OF ANY HIGHRANKING GOVERNMENT OFFICIAL REQUIRES AN OFFICIAL INQUIRY THE WHITE HOUSE SAID EVEN WHEN THERE IS NO SUSPICION OF SCANDAL OR FOUL PLAY BY ALL ACCOUNTS MR FOSTER WAS A TOUGH BRIGHT LAWYER HE GRADUATED FIRST IN HIS LAW SCHOOL CLASS AT THE UNIVERSITY OF ARKANSAS IN 1971 HE WAS USUALLY THE ROCK OF GIBRALTAR WHEN OTHER PEOPLE WERE HAVING TROUBLE THE PRESIDENT SAID HIS FRIENDS IN LITTLE ROCK ARK WHERE HE HAD BEEN A PARTNER AT THE ROSE LAW FIRM COULD HARDLY BELIEVE THE NEWS I'VE HAD PEOPLE CALL ME AND SAY HE JUST DIDN'T DO IT SAID DAVID WILLIAMS OUTGOING PRESIDENT OF THE ARKANSAS TRIAL LAWYERS ASSOCIATION THEY JUST DON'T BELIEVE THERE'S ANY BASIS FOR IT MR FOSTER WAS A PROMINENT MEMBER OF THE ROSE FIRM HANDLING MUCH OF THE BUSINESS OF ONE OF ITS BIGGEST CLIENTS STEPHENS INC THE HEAVYWEIGHT LITTLE ROCK INVESTMENT FIRM THAT EXTENDED A 35 MILLION LINE OF CREDIT TO THE CLINTON CAMPAIGN LAST YEAR MR FOSTER'S TITLE WAS DEPUTY WHITE HOUSE COUNSEL BUT HE WAS MORE THAN THAT HE AND THE PRESIDENT AND THE PRESIDENT'S CHIEF OF STAFF THOMAS MACK MCLARTY HAD BEEN FRIENDS SINCE THEY WERE IN MISS MARY'S KINDERGARTEN TOGETHER IN LITTLE HOPE ARK MR FOSTER WAS ALSO CLOSE TO MRS CLINTON THEY HAD BEEN PARTNERS AT THE ROSE FIRM MR FOSTER'S SISTER SHEILA FOSTER ANTHONY WIFE OF FORMER ARKANSAS REP BERYL ANTHONY IS AN ASSISTANT ATTORNEY GENERAL AT THE JUSTICE DEPARTMENT WHILE MOVING HIS WIFE AND THREE CHILDREN TO WASHINGTON PRESENTED SOME DIFFICULTY FRIENDS SAY IN THE PAST WEEK OR TWO THE FAMILY SEEMED TO BE SETTLING IN WORK AT THE WHITE HOUSE DIDN'T BEGIN SMOOTHLY EITHER MR FOSTER REPORTEDLY FELT FRUSTRATION AT THE SLOW PACE OF MAKING APPOINTMENTS TO KEY JOBS IN THE GOVERNMENT ONE OF HIS ASSIGNMENTS HE PLAYED A SECONDARY ROLE IN THE FLAP OVER THE WHITE HOUSE'S BUNGLED EFFORTS TO FIRE SEVEN MEMBERS OF ITS TRAVEL OFFICE HE WAS NOT AMONG THE WHITE HOUSE STAFF MEMBERS WHO WERE SUBSEQUENTLY REPRIMANDED FOR THEIR ROLES IN THE AFFAIR HOWEVER BUT HE WAS MENTIONED PROMINENTLY SEVERAL TIMES IN EDITORIALS IN THE WALL STREET JOURNAL MOST OF WHICH RAISED QUESTIONS ABOUT WHAT THE OLD PARTNERS IN THE ROSE LAW FIRM IN ARKANSAS WERE DOING IN WASHINGTON IT WAS THE KIND OF HIGH VISIBILITY MR FOSTER HAD NEVER EXPERIENCED IN LITTLE ROCK MR CLINTON ASKED IF CRITICISM COULD HAVE BEEN A FACTOR IN HIS DEATH REPLIED I CERTAINLY DON'T THINK THAT CAN EXPLAIN IT AND I CERTAINLY DON'T THINK IT'S ACCURATE THERE'S A BIG DIFFERENCE BETWEEN LITTLE ROCK AND WASHINGTON MR WILLIAMS CONCLUDED IN WASHINGTON EVERYTHING IS POLITICS POLITICS POLITICS IT'S NOT SUCH A BIG DEAL HERE 9307220095 930722 INTERNATIONAL TRADE MINISTERS TO MEET SOON ON NAFTA SIDE PACTS MEXICO CITY US TRADE REPRESENTATIVE MICKEY KANTOR SAID A MINISTERIAL MEETING ON THE SIDE ACCORDS TO THE NORTH AMERICAN FREE TRADE AGREEMENT WILL BE HELD IN WASHINGTON LATE NEXT WEEK CHEERED BY THE GOOD PROGRESS IN NEGOTIATIONS THIS WEEK IN OTTAWA MR KANTOR INDICATED THAT SENSITIVE SIDE AGREEMENTS ON THE ENVIRONMENT AND LABOR HAD REACHED THE FINAL STRETCH OF NEGOTIATIONS HOWEVER HE DECLINED TO CHARACTERIZE THE COMING WASHINGTON MEETING AS THE FINAL MEETING MR KANTOR ALSO DECLINED TO GIVE MANY DETAILS ON REMAINING AREAS OF DISAGREEMENT IN THE PARALLEL PACTS BUT OTHER NEGOTIATORS HAVE SAID THE ISSUE OF SANCTIONS FOR ENVIRONMENTAL AND LABOR VIOLATIONS REMAINS THE THORNIEST HURDLE FOR THE US CANADA AND MEXICO CANADA AND MEXICO OPPOSE SANCTIONS ARGUING THAT THEY WOULD INTERFERE WITH EACH NATION'S SOVEREIGNTY SANCTIONS ARE ALSO A TOUCHY POLITICAL ISSUE IN THE US WHERE NAFTA AND THE SIDE PACTS FACE A TOUGH RATIFICATION VOTE BEFORE CONGRESS THE SIDE PACTS ARE SEEN AS A VEHICLE FOR THE CLINTON ADMINISTRATION TO DEFLATE CONGRESSIONAL WORRIES ABOUT THE LOSS OF US INDUSTRY TO MEXICO WHERE ENFORCEMENT OF ENVIRONMENTAL LAWS HAS BEEN WEAK MR KANTOR WILL MEET WITH MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI TODAY BEFORE LEAVING FOR WASHINGTON 9307220094 930722 COMMODITIES GOLD PRICES MOVE DOWN AMID WEAK DEMAND INFLUENCING RETREATS BY OTHER PRECIOUS METALS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRICES OF PRECIOUS METAL FUTURES RETREATED ACROSS THE BOARD IN THIN MOSTLY TECHNICAL TRADING THE ACTIVE AUGUST GOLD CONTRACT CONTINUED TO EASE IN THE ABSENCE OF A RETURN OF STRONG ASIAN JEWELRY DEMAND LEADING SOME ANALYSTS TO BELIEVE THAT MORE PRICE EROSION IS IN STORE BEFORE ANY POSSIBLE RETURN TO LEVELS NEAR 400 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE AUGUST GOLD SLID 270 TO SETTLE AT A 38950 AN OUNCE THE CONTRACT HAD TRADED AS HIGH AS 39350 BEFORE SETTLING SLIGHTLY ABOVE THE DAY'S LOW OF 38920 THE GOLD MARKET WAS JUST TIRED MORE THAN ANYTHING OBSERVED WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IN NEW YORK IT LOOKS LIKE IT WANTS TO ERODE FURTHER OVER THE SHORTTERM AND SILVER AND THE OTHER PRECIOUS METALS MARKETS WILL GO ALONG HE PREDICTED DENISE GIORDANO WHO MANAGES PRECIOUS METALS TRADING FOR SWISS BANK SAID THAT THE GOLD FUTURES MARKET WAS IN A HEALTHY CONSOLIDATION PHASE DURING THE PEAK SUMMER HOLIDAY SEASON CONSIDERING THE LACK OF EVIDENCE OF PHYSICAL DEMAND IN SWITZERLAND HONG KONG AND THE MIDDLE EAST THE MARKET IS HOLDING UP EXCEPTIONALLY WELL SHE SAID MS GIORDANO SAID THAT SHE SEES FIRM SUPPORT FOR GOLD AT 387 AND PREDICTED THAT THE METAL WILL MOVE UP TO 415 OR 420 IN AUGUST OR AT THE LATEST IN EARLY SEPTEMBER OTHER ANALYSTS AGREED WITH HER ASSESSMENT THAT GOLD APPEARED TO BE WELLSUPPORTED AT LEVELS ABOVE 385 AND THAT IT COULD EDGE HIGHER TO ONCE AGAIN FLIRT WITH THE SYMBOLIC 400ANOUNCE LEVEL FAILURE TO BREACH THE 400 RESISTANCE LEVELS EARLIER THIS MONTH HAS SENT GOLD LOWER I'M STILL REASONABLY OPTIMISTIC TOWARD GOLD SAID GEORGE MILLINGSTANLEY SENIOR METALS ANALYST AT LEHMAN BROTHERS I SEE IT KEEPING TO A 385395 RANGE AND THEN MAKING A RENEWED CHALLENGE OF 400 BEFORE TOO MUCH LONGER HE SAID THAT REPORTS THIS SUMMER OF SWISS PRIVATE BANKS RECOMMENDING SOME EXPOSURE TO GOLD FOR THEIR CLIENTS WAS A POSITIVE SIGN THAT'S SOMETHING WE HAVEN'T SEEN SINCE LATE 1990 FOLLOWING THE IRAQI INVASION OF KUWAIT HE SAID THE LEHMAN ANALYST SAID THAT MARKET FUNDAMENTALS IN TERMS OF DEMAND EXCEEDING MINING SUPPLY ARE MUCH STRONGER FOR GOLD THAN SILVER I THINK GOLD AND SILVER ARE DUE FOR A DIVERGENCE GOLD SHOULD STEADY BEFORE MOVING BACK UP WHEREAS SILVER IS SET TO MOVE LOWER MR O'NEILL THE MERRILL STRATEGIST SAID HE COULD IMAGINE THE TWO PRECIOUS METALS MOVING IN OPPOSITE DIRECTIONS ON ANY GIVEN DAY BUT NOT AS A LONGTERM TREND IN OTHER PRECIOUS METALS ACTIVITY PLATINUM FOR OCTOBER DELIVERY FELL 470 TO 403 ON THE NEW YORK MERCANTILE EXCHANGE PALLADIUM FOR SEPTEMBER DELIVERY SETTLED AT 13750 OFF 95 CENTS IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS ROSE AT EXCHANGES IN CHICAGO AND MINNEAPOLIS AS GRAIN TRADERS BEGAN LOWERING THEIR FORECASTS FOR THE WINTER WHEAT HARVEST TO ACCOUNT FOR RAINDAMAGED CROPS FIERCE STORMS THIS WEEK HAVE PREVENTED FARMERS FROM COMPLETING HARVESTING IN KANSAS AND NEBRASKA IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR JULY DELIVERY ROSE ONE CENT A BUSHEL TO SETTLE AT 303 A BUSHEL SOME TRADERS ARE SHAVING ABOUT 50 MILLION BUSHELS FROM THEIR EARLIER FORECASTS FOR A 182 BILLIONBUSHEL WINTER WHEAT HARVEST TO ACCOUNT FOR THE STORM DAMAGE PRICES OF MOST SOYBEAN AND CORN FUTURES CONTRACTS WERE DEPRESSED BY CONFLICTING WEATHER FORECASTS FOR THE MIDWEST WHERE EXCESSIVE RAINFALL HAS LEFT MILLIONS OF ACRES UNPLANTED OR WASHED OUT SOME METEOROLOGISTS SEE A CHANCE OF A MORE NORMAL WEATHER PATTERN NEXT WEEK BUT MOST EXPECT STORMS TO SWEEP ACROSS THE SODDEN FARM BELT YET THIS WEEK IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY DROPPED 875 CENTS A BUSHEL TO SETTLE AT 72175 A BUSHEL ENERGY CRUDE OIL PRICES ROSE IN MODERATE TRADING MARKET PLAYERS SAID THAT MUCH OF THE ACTIVITY WAS TECHNICAL AND THAT EVERY TIME PRICES WOULD RISE A BIT THEY WOULD QUICKLY FALL AND VICE VERSA ON THE NEW YORK MERCANTILE EXCHANGE CRUDE FOR SEPTEMBER DELIVERY SETTLED AT 1793 A BARREL UP NINE CENTS THE CONTRACT TRADED BETWEEN 1763 AND 1809 A BARREL THE RISE CAME DESPITE A BUILDUP IN US OIL INVENTORIES AND THE LOOMING POSSIBILITY THAT THE UNITED NATIONS WOULD SOON ALLOW IRAQ TO SELL 16 BILLION OF OIL FLOODING A MARKET ALREADY BRIMMING WITH CRUDE BUT THE PLANS BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO HOLD AN EMERGENCY MEETING JULY 28 HAS PREVENTED A FREE FALL TRADERS ARE STILL TRYING TO ASSESS WHAT OPEC WILL DO TO CURB THE WORLD'S OIL GLUT GASOLINE PRICES MEANWHILE ROSE ON THE SURPRISING NEWS THAT GASOLINE INVENTORIES DECLINED IN THE LATEST WEEK AUGUST GASOLINE SETTLED AT 5249 CENTS A GALLON UP 070 CENT 9307220093 930722 TECHNOLOGY & HEALTH APPLE COMPUTER TO LOSE ENGINEERS FROM VIDEO GROUP BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC ALREADY SUFFERING FROM SEVERE COST CUTTING WILL SOON BE HIT BY ANOTHER BLOW THE DEFECTION OF KEY ENGINEERS FROM ITS VAUNTED COMPUTER VIDEO DEVELOPMENT GROUP FOUR ENGINEERS WHO FORM THE CORE OF APPLE'S QUICKTIME DEVELOPMENT GROUP INTEND TO JOIN ROCKET SCIENCE GAMES INC A VIDEO GAME STARTUP COMPANY ACCORDING TO ONE OF THE ENGINEERS AND PEOPLE FAMILIAR WITH ROCKET SCIENCE'S PLANS APPLE SAID IT DIDN'T KNOW ABOUT THE ENGINEERS' PLANS AND COULDN'T COMMENT THE DEFECTION WILL BE A BLOW TO THE QUICKTIME GROUP WHICH PIONEERED THE USE OF VIDEO AND AUDIO ON DESKTOP COMPUTERS ALTHOUGH COMPUTER VIDEO USE HAS GOTTEN A LETHARGIC START IT REPRESENTS A PROMISING TECHNOLOGY THAT ALLOWS COMPUTER USERS TO WORK WITH TELEVISIONLIKE PICTURES INSTEAD OF FIXED TEXT AND GRAPHICS COMPUTER VIDEO TECHNOLOGY IS CURRENTLY BEING DEVELOPED BY VARIOUS COMPANIES INCLUDING MICROSOFT CORP FOR USE IN GAMES ENTERTAINMENT EDUCATION AND BUSINESS APPLE'S VIDEO TECHNOLOGY WHICH RELIES ON A RELATIVELY INEXPENSIVE METHOD OF COMPRESSING THE HUGE AMOUNTS OF DATA NEEDED TO PROCESS VIDEO IMAGES HAS HELPED SPUR THE NASCENT MARKET OF DIGITAL PUBLISHING BY USING TECHNOLOGY PIONEERED BY APPLE VARIOUS COMPANIES HAVE PRODUCED APPEALING TITLES ON DISKS FOR COMPUTERS CALLED CDROM THAT MIX VIDEO AUDIO AND TEXT SUCH AS ENCYCLOPEDIAS WITH VIDEO SNIPPETS OF ROCKET LAUNCHES OR INTERVIEWS WITH HISTORICAL FIGURES QUICKTIME IS A MUCHTOUTED TECHNOLOGY BUT APPLE ISN'T A MUCHTOUTED COMPANY RIGHT NOW SAID A QUICKTIME ENGINEER WHO IS PLANNING TO LEAVE APPLE IS CURRENTLY UNDERGOING SEVERE COST REDUCTIONS AND LAYOFFS OF 16 OF ITS WORK FORCE PROMPTED BY A VICIOUS COMPUTER PRICE WAR AND FALLING PROFIT MARGINS THE COSTS CUTS HAVE GENERALLY BEEN ACROSS THE BOARD ALTHOUGH THE QUICKTIME GROUP HAS ESCAPED RELATIVELY UNSCATHED BUT MORALE AT APPLE HAS SUFFERED AND THE CUPERTINO CALIF COMPUTER MAKER'S WILLINGNESS TO EXPERIMENT WITH NEW TECHNOLOGY HAS BEEN CHAINED BY STAYING AHEAD OF THE CURVE APPLE HAS SUCCEEDED SAID NICK ARNETT PRESIDENT OF MULTIMEDIA COMPUTING CORP A CONSULTING FIRM WHO KNOWS WHAT WILL HAPPEN NOW ROCKET SCIENCE IS A PRIVATELY HELD COMPANY WHOSE INVESTORS INCLUDE VENTURE CAPITAL FIRMS AND SUPERMAC TECHNOLOGY INC THE PALO ALTO CALIF COMPANY WILL DEVELOP VIDEO GAMES ON CDROM DISKS SAID STEVEN BLANK ROCKET SCIENCE PRESIDENT 9307220092 930722 MARKETSCAN ROYAL CROWN BUBBLES WITH REVIVAL PLANS BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL WITH A MULTIMILLIONDOLLAR ADVERTISING INFUSION THIS SUMMER ROYAL CROWN COLA CO IS TRYING TO RESTORE THE EFFERVESCENCE OF BRANDS LONG GONE FLAT THE CHALLENGE IS CONSIDERABLE FOR A COMPANY THAT ONCE WAS A FEISTY IF DISTANT RUNNERUP TO RIVALS COCACOLA CO AND PEPSICO INC NOW ACCORDING TO THE INFOSCAN SERVICE OF INFORMATION RESOURCES INC ROYAL CROWN'S TOP BRANDS RC COLA AND DIET RITE HAVE FALLEN TO FOURTH AND FIFTH PLACES IN THE COLA MARKET BEHIND PRIVATELABEL COMPETITORS THEY HAVE A SYSTEM THAT REALLY NEEDS TO BE REASSEMBLED SAYS TOM PIRKO PRESIDENT OF BEVMARK INC A CONSULTING FIRM THEY HAVE TO ASK THE QUESTION CAN WE BE IN THE COLA BUSINESS AND IF SO HOW THIS IS THE IMAGE BUSINESS AND WE'VE HAD NO GOOD ADVERTISING FOR FIVE YEARS LAMENTS GEORGE KALIL A ROYAL CROWN BOTTLER BASED IN TUCSON ARIZ YOU CAN'T FIGHT A FIRE WITH A GARDEN HOSE INSTEAD THE MIAMIBASED COMPANY IS FIGHTING BACK WITH A NEW LEADER JOHN CARSON 47 YEARS OLD WHO BECAME ROYAL CROWN'S PRESIDENT MAY 1 MR CARSON FORMERLY PRESIDENT OF CADBURY BEVERAGES NORTH AMERICA A UNIT OF CADBURY SCHWEPPES PLC VOWS TO REVERSE THE COMPANY'S FORTUNES BY REVIVING ITS TOP BRANDS AND ITS SPIRIT OF INNOVATION THE COMPANY INTRODUCED THE FIRST DIET COLA THE FIRST SALTFREE DIET COLA AND THE FIRST CAFFEINEFREE COLA MR CARSON'S FIRST PRIORITY HE SAYS IS SIMPLE WE NEED TO TELL THE PUBLIC WE'RE STILL ALIVE ROYAL CROWN IS STILL A MAJOR PRESENCE IN SOME IMPORTANT MARKETS LIKE CHICAGO THE COMPANY CAN ALSO TAKE PLEASURE FROM CONSUMERS LIKE JEFF ROBERTS 15 WHO SAYS HIS FAMILY AND FRIENDS IN FAIRMONT W VA ARE RC COLA DRINKERS IF IT'S ON SALE WE BUY 50 BOTTLES AT A TIME HE SAYS A MORE TYPICAL CONSUMER HOWEVER IS GREGORY THOMAS A 21YEAROLD NATIONSBANK EMPLOYEE IN ATLANTA WHO HAS NEVER TRIED RC COLA OR DIET RITE IT'S NOT LIKE PEOPLE SAY LET'S RUSH TO THE STORE AND GET AN RC' HE POINTS OUT ROYAL CROWN'S CURRENT WOES ACCORDING TO INDUSTRY ANALYSTS CAN BE TRACED TO 1984 WHEN VICTOR POSNER THE MIAMI FINANCIER ACQUIRED ROYAL CROWN AND FOLDED IT INTO DWG CORP A HOLDING COMPANY HE THEN CONTROLLED UNDER HIS STEWARDSHIP ROYAL CROWN BEGAN TO FADE FROM VIEW THE SECURITIES AND EXCHANGE COMMISSION IS CURRENTLY ASKING A FEDERAL COURT TO BAR MR POSNER FROM EVER SERVING AS AN OFFICER OR DIRECTOR OF A PUBLICLY TRADED COMPANY THE MOST OBVIOUS CHANGE FOR ROYAL CROWN IN THE POSNER ERA WAS SEEN IN THE LACK OF ADVERTISING IN 1984 ACCORDING TO BEVERAGE DIGEST AN INDUSTRY NEWSLETTER ROYAL CROWN SPENT ALMOST 10 MILLION ON ADS LAST YEAR THAT SPENDING AMOUNTED TO JUST 31 MILLION IN CONTRAST BEVERAGE DIGEST REPORTED THAT COCACOLA AND PEPSI LAST YEAR SPENT 2114 MILLION AND 1473 MILLION RESPECTIVELY IN DOMESTIC MEDIA ADVERTISING MR POSNER DECLINES TO ANSWER QUESTIONS ABOUT ROYAL CROWN IN APRIL HE SOLD HIS STAKE IN DWG TO INVESTORS NELSON PELTZ AND PETER MAY LAST YEAR A FEDERAL JUDGE IN CLEVELAND RULED THAT MR POSNER HAD VIOLATED HIS FIDUCIARY DUTY TO SHAREHOLDERS AND COULD NO LONGER RUN THE COMPANY ROYAL CROWN'S BOTTLERS ARE WIDELY CREDITED WITH KEEPING THE COMPANY AFLOAT DURING THE POSNER ERA MR CARSON SAYS HE HAS BEEN BUSY ASSURING BOTTLERS THAT HE IS SERIOUS ABOUT INCREASING MARKET SHARE AND BUILDING NEW BRANDS EXACTLY WHAT THOSE BRANDS MIGHT BE IS STILL UNCLEAR I DON'T THINK THE WORLD NEEDS ANOTHER ICED TEA SAYS MR CARSON REFERRING TO COKE AND PEPSI'S AGGRESSIVE EFFORTS IN MARKETING SUCH BEVERAGES WE DON'T WANT TO JUST CLONE WHAT OTHERS HAVE DONE ROYAL CROWN ISN'T THE ONLY SOFTDRINK COMPANY TRYING TO REVIVE A FADED BRAND EARLIER THIS YEAR COCACOLA INTRODUCED TAB CLEAR A COLORLESS VERSION OF ITS 30YEAROLD TAB DIET BRAND ONCE THE COUNTRY'S LARGESTSELLING LOWCALORIE SODA TAB LOST GROUND A DECADE AGO AS THE COMPANY FOCUSED ON ITS MOREPROMISING DIET COKE BRAND TAB NOW COMMANDS A FRACTION OF INDUSTRY SALES AT ROYAL CROWN MR CARSON EMPHASIZES THAT INNOVATION AND NEWPRODUCT LINES ARE ABSOLUTELY ESSENTIAL TO LONGTERM GROWTH WHEN MR CARSON JOINED ROYAL CROWN HE SAYS HE FOUND A GOOD RESEARCH AND DEVELOPMENT OPERATION BUT ONE THAT HADN'T BEEN ALLOWED TO OPERATE HE INTENDS TO CHANGE THAT I WANT TO LET THEM GET EXCITED AGAIN MR CARSON SAYS HE ALSO PLANS TO UNDERTAKE A SERIES OF SMALL INITIATIVES NONE OF WHICH WILL WORRY COKE OR PEPSI INDIVIDUALLY BUT COLLECTIVELY MIGHT ADD UP ONE EXAMPLE INCREASING ROYAL CROWN'S PRESENCE AT RESTAURANTS ESPECIALLY AT ITS SISTER COMPANY ARBY'S CURRENTLY ONLY 12 OF THE 2600 ARBY'S RESTAURANTS SERVE ROYAL CROWN'S COLA PRODUCTS OTHER CUSTOMERS AWAIT OVERSEAS WHERE ROYAL CROWN IS AVAILABLE IN 53 COUNTRIES MR CARSON SAYS HE HAS BEEN CONTACTED BY NUMEROUS BUSINESS LEADERS OUTSIDE THE US ABOUT THE POSSIBILITY OF INTRODUCING THE COMPANY'S PRODUCTS IN STILL MORE INTERNATIONAL MARKETS BUT BEFORE TAKING THAT PATH MR CARSON MAY HAVE TO DEAL WITH A DOMESTIC COMPETITOR AND CUSTOMERPRIVATELABEL COLAS SUCH COLAS ALSO KNOWN AS STOREBRAND COLAS HAVE RECENTLY ENJOYED A SURGE IN POPULARITY WHILE SALES OF ROYAL CROWN'S RC COLA FELL 58 IN THE YEAR ENDED MAY 16 ACCORDING TO INFORMATION RESOURCES SALES OF PRIVATELABEL COLAS JUMPED 19 ABOUT 35 OF ROYAL CROWN'S BUSINESS IS DONE WITH COMPANIES LIKE COTT CORP OF TORONTO WHICH BUY ROYAL CROWN FORMULATIONS AND SELL THEM REPACKAGED TO RETAILERS LIKE WALMART STORES INC AND WEGMANS FOOD MARKETS INC MR PIRKO THE CONSULTANT AND OTHERS SAY ROYAL CROWN SHOULD HAVE DOMINATED THE PRIVATELABEL BUSINESS BY PROVIDING DIRECTLY TO RETAIL STORES INSTEAD OF SELLING VARIATIONS OF THE FORMULA TO COTT THESE PEOPLE SOLD THEIR BIRTHRIGHT THEY HAD ONE OF THE TOP FORMULAS MR PIRKO SAYS BUT SOMETIMES WHEN YOU'RE DOWN AND OUT YOU SELL THE HOMESTEAD MR CARSON SAYS HE CAN'T TURN BACK THE CLOCK ON ROYAL CROWN'S DEALINGS WITH COTT BUT HE ADDS THAT HE IS MEETING WITH COTT EXECUTIVES TO TRY TO PREVENT THE TWO COMPANIES FROM ENDING UP AS ARCHRIVALS UNDERCUTTING ONE ANOTHER'S SALES ALL THESE MEASURES SAYS MR CARSON ARE DESIGNED TO HELP REACH HIS GOAL OF DOUBLING ROYAL CROWN'S MARKET SHARE WITHIN FIVE YEARS GOING HEAD TO HEAD WITH COKE OR PEPSI WOULD BE FOOLISH HE SAYS RATHER ROYAL CROWN HAS TO FIGHT THE COLA WARS LIKE A GUERRILLA INSTEAD OF A GORILLA ROYAL CROWN COLA'S BRANDS HAVE NEARLY FADED FROM MEMORY BUT NEW MANAGEMENT IS ATTEMPTING A REVIVAL BASED ON SUPERMARKET SALES DURING THE 52 WEEKS ENDED MAY 16 9307220091 930722 FOREIGN EXCHANGE DOLLAR ENDS FLAT TO LOWER AS DILEMMA OVER INTERESTRATE POLICY BOOSTS MARK BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS FLAT TO LOWER WEDNESDAY AS AN INTERESTRATE POLICY DILEMMA FACING GERMANY'S CENTRAL BANK FUELED AN ADVANCE IN THE MARK AGAINST WEAKER EUROPEAN CURRENCIES MEANWHILE STERLING HAD A VOLATILE DAY AS MORE BULLISH UK ECONOMIC DATA WERE UNDERCUT BY WORRIES ABOUT A CRUCIAL VOTE SCHEDULED BY PARLIAMENT THURSDAY ON THE MAASTRICHT TREATY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16970 MARKS DOWN FROM 16996 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10810 YEN LITTLE CHANGED FROM 10815 YEN STERLING WAS TRADING AT 15155 UP FROM 15110 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10820 YEN AND AT 17035 MARKS HOPES THAT THE BUNDESBANK COULD LOWER INTEREST RATES BEFORE ITS AUGUST RECESS WERE DEALT A BLOW WEDNESDAY WITH THE RELEASE OF FIGURES SHOWING GERMANY'S M3 MONEY SUPPLY GREW IN JUNE AT AN ANNUAL RATE OF 71 M3 IS A BROADLY DEFINED AGGREGATE COMPRISING CASH IN CIRCULATION MOST FORMS OF SAVINGS AS WELL AS CERTAIN OTHER DEPOSITS THE JUNE FIGURE SWOLLEN BY GERMAN GOVERNMENT SPENDING TO REBUILD THE EASTERN TERRITORIES SURPASSED MARKET EXPECTATIONS AND ALSO WAS OUTSIDE THE BUNDESBANK'S 4565 TARGET FOR ANNUAL M3 GROWTH THE CENTRAL BANK REPEATEDLY HAS SAID THAT M3 GROWTH MUST BE CURTAILED BEFORE IT WILL CUT BENCHMARK INTEREST RATES AT THE SAME TIME THE WEAKNESS OF SEVERAL SMALLER CURRENCIES WITHIN THE EXCHANGE RATE MECHANISM OR ERM OF THE EUROPEAN MONETARY SYSTEM HIGHLIGHTED WHAT SOME SEE AS A NEED TO CUT GERMAN RATES AND REDUCE THE MARK'S APPEAL THE ERM IS A GRID LIMITING FLUCTUATIONS OF VALUE BETWEEN EUROPEAN CURRENCIES IF ONE CURRENCY REACHES ITS CEILING VALUE AGAINST ANOTHER BOTH COUNTRIES' CENTRAL BANKS ARE REQUIRED TO BUY THE WEAK CURRENCY IN THE FOREIGNEXCHANGE MARKETS UNTIL ITS VALUE INCREASES LAST WEEK SPECULATORS PUSHED THE MARK NEAR ITS CEILING VALUE AGAINST THE DANISH KRONE AND FRENCH FRANC TRIGGERING MASSIVE MARKET INTERVENTION BY BANKS ACROSS EUROPE THE KRONE HAS SINCE GAINED STRENGTH AFTER A BOOST IN DANISH INTEREST RATES WHICH INCREASED THE ATTRACTIVENESS OF THE CURRENCY BY INCREASING THE RATE ON DEPOSITS DENOMINATED IN KRONER THE FRANC MEANWHILE REMAINS NEAR ITS 34305FRANC ERM FLOOR AGAINST THE MARK WITH THE MARK CLOSING AT 34172 FRANCS WEDNESDAY UP FROM 34157 FRANCS TUESDAY BUT ERIC NICKERSON A VICE PRESIDENT AND CHIEF ECONOMIST AT BANK OF AMERICA IN SAN FRANCISCO SAID SPECULATORS HAVE SHIFTED THEIR ATTENTION ELSEWHERE THE MARKET IS PRETTY MUCH AWARE THAT MORE PRESSURE ON THE FRENCH WILL TRIGGER MORE INTERVENTION HE SAID THERE ARE NO DOUBTS THAT THE GERMANS WILL COME IN AND DEFEND THE FRANC EVEN ABOVE ITS ERM FLOOR BECAUSE OF FRANCE'S SYMBOLIC IMPORTANCE TO THE EUROPEAN UNION HE SAID INSTEAD MR NICKERSON SAID PLAYERS HAD SWITCHED TO SELLING THE ITALIAN LIRA WHICH CURRENTLY ISN'T PARTICIPATING IN THE ERM AND THE SPANISH PESETA WHICH IS STILL NEAR THE MIDPOINT OF ITS ERM BAND AND THUS UNLIKELY TO BRING ON INTERVENTION BY OTHER EUROPEAN CENTRAL BANKS ON WEDNESDAY THE MARK CLOSED AT ABOUT 7894 SPANISH PESETAS UP FROM 7842 PESETAS LATE TUESDAY AND AT AROUND 942 ITALIAN LIRE WELL ABOVE 934 LIRE ON TUESDAY 9307220090 930722 BUSINESS BRIEF SCHLUMBERGER LTD SECONDPERIOD NET FELL 9 BUT DRILLING ACTIVITY GREW SCHLUMBERGER LTD REPORTED A 9 DROP IN SECONDQUARTER EARNINGS BUT SAID DRILLINGRIG ACTIVITY IN NORTH AMERICA GREW AN ENCOURAGING 13 IN THE PERIOD THE PROVIDER OF OILFIELD SERVICES AND ELECTRONIC EQUIPMENT POSTED NET INCOME OF 163 MILLION OR 67 CENTS A SHARE DOWN FROM 1785 MILLION OR 74 CENTS A SHARE THE YEAR EARLIER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SCHLUMBERGER COMMON CLOSED AT 65 UP 275 A SHARE THE WEAKNESS IN DRILLING ACTIVITY THAT BEGAN IN EARLY 1992 BOTTOMED OUT IN THE FIRST QUARTER THE COMPANY SAID ALTHOUGH THE OUTLOOK FOR THE NORTH SEA AND WEST AFRICA REMAINS SOFT SECONDQUARTER REVENUE GREW 10 TO 175 BILLION FROM THE YEAR EARLIER FOR THE HALF NET FELL TO 481 MILLION FROM 3348 MILLION DUE LARGELY TO A ONETIME 248 MILLION CHARGE RELATED TO AN ACCOUNTING CHANGE SIXMONTH PERSHARE NET FELL TO 19 CENTS FROM 139 THE YEAR BEFORE 9307220089 930722 WHAT'S NEWS WORLDWIDE MIDWESTERNERS' HOPES SANK AS MORE RAIN WAS FORECAST FOR THE REGION SURGING FLOODWATERS CRESTED ALONG THE LAST 100MILE STRETCH OF THE MISSISSIPPI RIVER STILL THREATENED BY FLOODING LEAVING A TRAIL OF DESTRUCTION MEANWHILE THERE WERE FORECASTS OF UP TO 5 1/2 INCHES OF RAIN FOR THE MIDWEST BY LATE THIS WEEKEND THIS POSED THE THREAT OF FURTHER FLOODING JUST AS RIVER LEVELS WERE SUBSIDING ONCE THE CREST PASSES CAIRO ILL THE MISSISSIPPI EMPTIES INTO A WIDER RIVERBED AND SHOULDN'T FLOOD THERE OFFICIALS SAID IN DES MOINES IOWA EFFORTS TO RESTORE TAP WATER CITYWIDE FAILED AGAIN IN PART BECAUSE PEOPLE TRIED TO DRAW WATER TOO SOON AFTER ENDURING 12 DAYS WITHOUT IT INTERNATIONAL MEDIATORS ANNOUNCED THAT THE TOP LEADERS OF BOSNIA'S WARRING FACTIONS AGREED TO ATTEND A NEW ROUND OF GENEVA PEACE TALKS TOMORROW AND STAY UNTIL A SETTLEMENT IS REACHED THERE WASN'T ANY IMMEDIATE CONFIRMATION FROM LEADERS OF THE SERBS CROATS AND MUSLIMS THAT THEY ACCEPTED THE INVITATION TO THE TALKS HIGH COURT NOMINEE GINSBURG SUGGESTED SHE WOULD BE RECEPTIVE TO ARGUMENTS THAT THE SUPREME COURT SHOULD BE MORE AGGRESSIVE IN ROOTING OUT SEX DISCRIMINATION HER VIEW COULD BE IMPORTANT IN CASES INVOLVING POTENTIAL DISPUTES OVER WORKPLACE POLICIES REGARDING WOMEN AS WELL AS CONTROVERSIES OVER ABORTION CURBS THE JUSTICE DEPARTMENT IS COORDINATING AN INVESTIGATION INTO THE APPARENT SUICIDE OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER JR FOUND DEAD TUESDAY IN A VIRGINIA PARK FOSTER 48 A CLOSE FRIEND OF THE CLINTONS WAS FOUND WITH A GUN IN HIS HAND PHILIP HEYMANN DEPUTY ATTORNEY GENERAL WILL HEAD THE INVESTIGATION HOUSE LEADERS WERE ASKED BY US PROSECUTORS NOT TO RELEASE TESTIMONY FROM LAST YEAR'S TASK FORCE INQUIRY OF THE HOUSE POST OFFICE PROSECUTORS WHO ARE INVESTIGATING WAYS AND MEANS COMMITTEE CHIEF ROSTENKOWSKI SAID RELEASE OF THE MATERIAL MIGHT HURT THEIR INQUIRY INTO AN ALLEGED EMBEZZLEMENT SCHEME THE EPA ISSUED A PAMPHLET RECOMMENDING WAYS FOR OFFICES RESTAURANTS BARS AND PRIVATE RESIDENCES TO RESTRICT NONSMOKERS' EXPOSURE TO CIGARETTE SMOKE THE FEDERAL RECOMMENDATIONS DON'T HAVE THE FORCE OF LAW AND EPA ADMINISTRATOR BROWNER DECLINED TO ENDORSE AN EXPLICIT GOVERNMENT BAN ON CIGARETTE SMOKING HEART RESEARCHERS SAID A ROTOROOTER DEVICE FOR CLEANING ARTERIES PROVIDES LITTLE ADVANTAGE OVER A BALLOON TECHNIQUE WHILE BOOSTING COSTS AND RISKS THE TWO STUDIES WERE A SETBACK FOR MAKERS OF THE CUTTING DEVICES WHICH WERE THOUGHT TO BE AN IMPROVEMENT OVER BALLOONS THAT PUSH PLAQUE AGAINST ARTERY WALLS ASPIN DISMISSED CRITICISM THAT CLINTON'S DON'T ASK DON'T TELL POLICY ON MILITARY RECRUITMENT OF HOMOSEXUALS WOULD BE A MAGNET FOR LEGAL CHALLENGES THE DEFENSE SECRETARY TOLD MEMBERS OF THE HOUSE ARMED SERVICES COMMITTEE THAT THE PRESIDENT'S POLICY IS FRANKLY MORE ENFORCEABLE THAN THE CURRENT BAN ON HOMOSEXUALS THE FDA ABANDONED A POLICY THAT EXCLUDED MOST WOMEN OF CHILDBEARING AGE FROM EARLY CLINICAL TRIALS OF DRUGS' SAFETY AND EFFECTIVENESS AT THE SAME TIME THE AGENCY IS TELLING PHARMACEUTICAL COMPANIES TO MAKE SURE THAT WOMEN ARE APPROPRIATELY REPRESENTED IN DRUG TRIALS CLINTON SOUGHT TO PATCH UP STRAINED RELATIONS WITH BLACKS IN CONGRESS PLEDGING TO NAME MORE BLACKS AND WOMEN TO TOP ADMINISTRATION JOBS AND TO BE MORE SENSITIVE TO MINORITY CONCERNS MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS EMERGED FROM THE MEETING SAYING THEY WOULD TRY TO WORK WITH CLINTON ON HIS DEFICITREDUCTION PLAN THE HOUSE REJECTED A BILL TO LIMIT CHINA'S TRADE PRIVILEGES WITH THE US AMID HEATED DEBATE OVER BEIJING'S HUMANRIGHTS RECORD LAWMAKERS VOTED 318105 AGAINST A MEASURE THAT WOULD HAVE TAKEN AWAY CHINA'S MOSTFAVOREDNATION TRADING STATUS BUT CONDITIONED ANY FURTHER EXTENSION ON IMPROVEMENTS IN CHINESE RIGHTS POLICIES THE SECURITY COUNCIL MAINTAINED ITS THREEYEAROLD TRADE AND OIL EMBARGOES AGAINST IRAQ SAYING BAGHDAD STILL HADN'T COMPLIED WITH GULF WAR TRUCE RESOLUTIONS UN DIPLOMATS SAID THAT ALTHOUGH IRAQ APPARENTLY HAD AGREED TO ARMS MONITORING IT HASN'T ACCEPTED ITS REDRAWN BORDER WITH KUWAIT AND HAS COMMITTED RIGHTS ABUSES 9307220088 930722 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG RELATIVELY FEW OF YOU ARE READING THIS COLUMN ON COMPUTER SCREENS THOUGH IT'S AVAILABLE THROUGH A DATABASE SERVICE INDEED MOST MAJOR NEWS PUBLICATIONS ARE DISTRIBUTED ELECTRONICALLY IN ONE FORM OR ANOTHER BUT READERS INCLUDING THOSE WITH READY ACCESS TO COMPUTERS GENERALLY CLING TO INK ON PAPER FOR RECEIVING WRITTEN NEWS AND FEATURES THAT INCLUDES ARTICLES PROCLAIMING THE IMMINENT DEMISE OF SUCH TRADITIONAL PUBLISHING I'M WILLING TO BELIEVE ELECTRONIC DISTRIBUTION WILL TAKE OVER EVENTUALLY BUT NOT UNTIL ELECTRONIC NEWS IS AS EASY TO USE AS THE PAPER VERSIONS WHICH ARE ORGANIZED IN WAYS THAT ALLOW BOTH SCANNING FOR TOPICS FAIRLY QUICKLY AND DELVING INTO PARTICULAR ARTICLES THE MAJOR NEWS DATABASES IN CONTRAST WERE DESIGNED MORE FOR PROFESSIONAL RESEARCHERS THAN FOR REGULAR READERS THEY HAVE POWERFUL MEANS FOR FINDING THINGS IN PAST ISSUES BUT SUCH SEARCHING CAN BE COMPLICATED AND MOST IMPORTANT THEY LACK THE ORGANIZATION ATTRACTIVE LAYOUTS AND VISUAL CUES THAT PAPER PUBLICATIONS OFFER FOR BROWSING AND READING A CURRENT ISSUE IDEALLY AN ELECTRONIC NEWSPAPER WOULD BE MORE THAN JUST BLOCKS OF SCROLLING TEXT LIKE A TRADITIONAL PAPER IT WOULD HAVE A LAYOUT COMPLETE WITH GRAPHICS COLUMNS AND VARYING TYPE DESIGNED TO MAKE IT EASY TO NAVIGATE THROUGH THE NEWS THIS ELECTRONIC LAYOUT COULD ALSO INCLUDE ELEMENTS UNAVAILABLE ON PAPER AUDIO AND VIDEO CLIPS RELATED MATERIAL THAT COULD BE CALLED UP INSTANTLY DYNAMIC CHARTS AND GRAPHS AND A PERSONAL INDEX THAT WOULD PERMIT EACH READER TO QUICKLY FIND TOPICS OF GREATEST INTEREST VARIOUS NEWSPAPERS INCLUDING THE WALL STREET JOURNAL ARE EXPERIMENTING WITH SUCH PRODUCTS BUT NONE ARE ON THE MARKET YET ALREADY HOWEVER SOME NEW APPROACHES TO ELECTRONIC NEWS DELIVERY ARE BECOMING AVAILABLE THE MOST INTERESTING OF THESE IN MY VIEW IS MERCURY CENTER THE ELECTRONIC EDITION OF THE SAN JOSE CALIF MERCURY NEWS AVAILABLE ON THE AMERICA ONLINE SERVICE THE MERCURY NEWS IS SILICON VALLEY'S HOMETOWN PAPER AND IT HAS TAKEN TO ELECTRONIC PUBLISHING WITH A PASSION MUCH OF PAGE TWO EVERY DAY IS DEVOTED TO PROMOTING AND EXPLAINING MERCURY CENTER AND SELECTED ARTICLES IN THE PAPER ARE FOLLOWED BY NOTICES TELLING READERS HOW TO CALL UP RELATED STORIES ELECTRONICALLY EVEN IF THEY DIDN'T APPEAR IN PRINT OR HOW TO ELECTRONICALLY REGISTER OPINIONS ON MONDAY A LONG WIRESERVICE STORY ABOUT CHANGES IN PRESIDENT CLINTON'S BUDGET PLAN WAS SUPPLEMENTED BY ELECTRONIC ARTICLES ON THE ROLES CONGRESSIONAL REPUBLICANS AND DEMOCRATS ARE PLAYING ON THE ISSUE A MAJOR LOCAL STORY ON TRASH COLLECTION WAS FOLLOWED BY AN INVITATION TO READERS TO LOG ONTO MERCURY CENTER AND VOICE YOUR OPINION IN A COMPUTER BULLETIN BOARD CALLED SAN JOSE'S GARBAGE SERVICE USERS OF THE ELECTRONIC VERSION GET ALL THE STORIES IN THAT DAY'S PAPER MOST OF THE CLASSIFIED ADS INCLUDING PERSONALS THE ADDED STORIES AND MATERIAL AN EXTRACOST ARCHIVE OF THE PAPER'S CONTENTS BACK TO 1985 AND BULLETIN BOARDS WHERE THEY CAN EXCHANGE VIEWS WITH THE PAPER'S STAFF AND WITH EACH OTHER MOST OF MERCURY CENTER IS FREE ONCE YOU SUBSCRIBE TO AMERICA ONLINE WHICH ALSO OFFERS MANY OTHER THINGS INCLUDING A LESS AMBITIOUS ONLINE EDITION OF THE CHICAGO TRIBUNE FOR 995 A MONTH FOR FIVE HOURS OF USE DOING RESEARCH ON PAST ISSUES HOWEVER CARRIES A HEFTY EXTRA PRICE 48 AN HOUR DURING THE DAY AND 6 AN HOUR AT NIGHT AND ON WEEKENDS MERCURY CENTER STILL CONSISTS MAINLY OF TEXT SCROLLING THROUGH WINDOWS ON SCREEN BUT THE MATERIAL IS PRESENTED AND ORGANIZED IN A BRIGHT INVITING WAY MUCH DIFFERENT FROM TRADITIONAL DATABASES TO SEE A LIST OF SPORTS STORIES FOR INSTANCE YOU CLICK WITH A MOUSE ON AN ICON SHOWING A FOOTBALL BASEBALL AND SOCCER BALL THE CLASSIFIED ADS ARE REACHED BY AN ICON OF A SHOPPING CART STORIES OR ADS CAN BE SAVED AS FILES ON DISK FOR LATER USE OR THEY CAN BE PRINTED OR COPIED INTO A WORD PROCESSOR YOU CAN COMPOSE ADS OR LETTERS TO THE EDITOR BUT FOLLOWUP PHONE CALLS TO HUMANS ARE NEEDED BEFORE EITHER IS PRINTED IN THE REAL PAPER SCROLLING THROUGH THE MESSAGE BOARDS THIS WEEK I FOUND MANY EXCHANGES BETWEEN READERS AND THE PAPER'S COLUMNISTS AND EDITORS THE SORT OF INTERACTION NEWSPAPERS ARE OFTEN CRITICIZED FOR AVOIDING AFTER THE PAPER REPORTED THAT TRASH COLLECTION WAS IMPROVING A READER FIRED OFF A DETAILED MESSAGE SAYING THE TRASH CANS IN HIS NEIGHBORHOOD STILL LANGUISHED ON THE CURB FOR DAYS EXECUTIVE EDITOR BOB INGLE REPLIED THIS WON'T SURPRISE YOU BUT PEOPLE TELL US STUFF ALL THE TIME THAT ISN'T TRUE THANKS FOR THE FEEDBACK THERE ARE A FEW FLAWS IN PARTICULAR I WAS BOTHERED THAT THE ADDITIONAL OFFERINGS INTENDED TO ILLUMINATE ARTICLES OFTEN INCLUDED SELFSERVING PRESS RELEASES MIXED IN WITH NEWS STORIES THE RELEASES HAVE VALUE BUT THEY MIGHT BETTER BE OFFERED IN SOME SEPARATE LISTING TO AVOID CONFUSING CASUAL READERS I ALSO FOUND GLITCHES A FEW CODE NUMBERS IN THE PAPER DIDN'T SEEM TO RETRIEVE THE RIGHT STORIES AND WHEN I TRIED TO CALL UP THE HOMES FOR SALE ADS I GOT THE MESSAGE PACKET GROUP NOT DEFINED I ALSO WONDERED FORGIVE MY PROFESSIONAL PAROCHIALISM HOW THE EDITORS AND COLUMNISTS HAD TIME TO PARTICIPATE IN THE BULLETIN BOARDS AND STILL GET THEIR WORK DONE MERCURY CENTER ISN'T AS EASY TO USE AS THE PAPER EDITION ALL IN ALL HOWEVER IT IS AN IMPROVEMENT OVER PAST EFFORTS TO PRESENT NEWSPAPERS ELECTRONICALLY A STEP IN THE DIRECTION OF BETTER ONLINE NEWS AND THE INK DOESN'T COME OFF ON YOUR FINGERS 9307220087 930722 ENTERPRISE CLINTON SEEKS SMALLBUSINESS SUPPORT FOR BUDGET PLAN ADMINISTRATION'S ALLOUT EFFORT SEEKS TO PORTRAY PROPOSAL AS BOON TO FIRMS BY EUGENE CARLSON AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION LAUNCHED AN ALLOUT EFFORT TO WIN SMALLBUSINESS SUPPORT FOR ITS CONTROVERSIAL BUDGET PLAN THOUGH MANY SMALLBUSINESS GROUPS HAVE BEEN HOSTILE TO THE PLAN ADMINISTRATION OFFICIALS ARE APPEALING DIRECTLY TO OWNERS ARGUING THAT THE PROPOSAL HAS MORE TO OFFER SMALL COMPANIES THAN IS OFTEN REALIZED IN AN ORCHESTRATED SERIES OF SPEECHES A SEVENCITY TELECONFERENCE AND A WHITE HOUSE LUNCH YESTERDAY WITH SMALLCOMPANY OWNERS THE ADMINISTRATION TRIED TO PORTRAY ITS ECONOMIC PLAN INCLUDING ITS TAX WRITEOFFS AS A BOON TO SMALL BUSINESS THE MESSAGE WAS WE CAN HELP HIM AND HE CAN HELP US' SAID STEVE SELLERS PRESIDENT OF DALLASBASED SELLERS ADVERTISING CO AFTER A 90MINUTE LUNCH WITH PRESIDENT CLINTON WITH A CLOSE VOTE EXPECTED ON THE BILL SOMETIME NEXT MONTH THE ADMINISTRATION IS PLEADING WITH SMALLBUSINESS OWNERS TO URGE MEMBERS OF CONGRESS TO BACK THE LEGISLATION WE'RE IN THE HOME STRETCH AND WE NEED YOUR HELP VICE PRESIDENT AL GORE TOLD AN AUDIENCE OF ABOUT 200 SMALLBUSINESS OWNERS GATHERED IN A PARKING LOT OUTSIDE NICK'S OF CLINTON A SMALL GROCERY STORE IN NEARBY WALDORF MD WHERE THE TELECONFERENCE WITH OWNERS IN OTHER CITIES WAS CONDUCTED WHITE HOUSE OFFICIALS ARE CONVINCED THEY CAN GAIN THE SUPPORT OF MANY SMALLBUSINESS OWNERS A POLITICALLY INFLUENTIAL GROUP THEIR STRATEGY IS AIMED AT SHOWING THAT THE POTENT SMALLBUSINESS LOBBY ISN'T UNIFORMLY AGAINST THE CLINTON PLAN AT HIS TALK YESTERDAY MR GORE SINGLED OUT SEVERAL SMALLBUSINESS MEMBERSHIP ORGANIZATIONS AND TRADE GROUPS BACKING THE PLAN AMONG THEM WERE THE NATIONAL SMALL BUSINESS UNITED NATIONAL ORGANIZATION OF WOMEN BUSINESS OWNERS NATIONAL VENTURE CAPITAL ASSOCIATION AND NATIONAL TOOLING AND MACHINING ASSOCIATION CONSPICUOUSLY ABSENT FROM THE LIST WAS THE WASHINGTONBASED NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE NATION'S LARGEST SMALLBUSINESS MEMBERSHIP GROUP THE NFIB IS A STRIDENT FOE OF THE CLINTON PLAN WHICH IS THE BASIS OF A FINAL BILL BEING NEGOTIATED BY A HOUSESENATE CONFERENCE DESPITE THE DEATH OF A CLOSE FRIEND PRESIDENT CLINTON HIMSELF JOINED THE SALES EFFORT YESTERDAY OVER A MEAL OF DUCK AND WILD RICE IN THE FIRST FAMILY'S DINING ROOM MR CLINTON STRESSED TO 14 SMALLBUSINESS OWNERS THAT THE BULK OF SMALL COMPANIES INCLUDING NEARLY ALL OF THOSE ORGANIZED AS SUBCHAPTER S CORPORATIONS WOULDN'T PAY HIGHER TAXES UNDER HIS BUDGET PLAN S CORPORATIONS AREN'T TAXED ON THEIR EARNINGS INSTEAD EARNINGS FLOW THROUGH TO THE SHAREHOLDERS AND ARE REFLECTED AS INCOME ON THEIR INDIVIDUAL TAX RETURNS HE ALSO SAID THAT CUTTING THE DEFICIT WOULD REDUCE THE COST OF CAPITAL TO SMALL FIRMS BY HOLDING DOWN INTEREST RATES FURTHERMORE THE PRESIDENT HAS ARGUED THAT UNDER THE LEGISLATION MORE THAN 90 OF SMALL BUSINESSES WILL BE ELIGIBLE FOR A TAX BREAK IF THEY INVEST IN THEIR BUSINESSES IT WAS VERY NICE TO SIT DOWN AND DISCUSS THESE THINGS WITH THE PRESIDENT AND VICE PRESIDENT IN REALLIFE TERMS SAID MR SELLERS SMALL BUSINESS ADMINISTRATION HEAD ERSKINE BOWLES AND LAURA D'ANDREA TYSON HEAD OF THE COUNCIL OF ECONOMIC ADVISERS ALSO ATTENDED THE LUNCH BUT AFTER EATING AT MR CLINTON'S TABLE THE TEXAS AD MAN COULDN'T RESIST A JAB AT THE PRESIDENT'S SUPPORT FOR A CUT IN THE TAX DEDUCTION FOR BUSINESS MEALS THE BUSINESS LUNCH IS ABOUT AS BASIC TO DOING BUSINESS AS MY UTILITY BILL HE SAID A SHAKEN MR CLINTON ASKED MR GORE TO OFFER A PRAYER BEFORE LUNCH TO THE MEMORY OF VINCENT FOSTER JR DEPUTY WHITE HOUSE COUNSEL AND MR CLINTON'S LIFELONG FRIEND WHO PARK SERVICE INVESTIGATORS SAID APPARENTLY TOOK HIS OWN LIFE TUESDAY THE GRIEVING PRESIDENT ALSO ASKED MR GORE TO SUBSTITUTE AT THE MARYLAND RALLY AND TELECONFERENCE EARLIER IN THE DAY WE'RE COMMITTED TO YOU MR GORE TOLD SMALLCOMPANY OWNERS AND THEIR EMPLOYEES IN THE SEVENCITY HOOKUP CONTACT YOUR CONGRESSMAN OR SENATOR AND ASK THEM TO VOTE FOR CHANGE INSTEAD OF GRIDLOCK THE TELECONFERENCE WHICH MR GORE AND SBA ADMINISTRATOR MR BOWLES CONDUCTED FROM INSIDE THE GROCERY STORE PROVIDED SOME GIVEANDTAKE ON THE CLINTON PLAN A DALLAS MANUFACTURER OF LARGE BAGS QUESTIONED THE USEFULNESS OF A PROVISION ALLOWING COMPANIES TO WRITE OFF MORE OF THEIR EQUIPMENT PURCHASES FOR TAX PURPOSES THAN THE CURRENT 10000 THE HOUSE WOULD RAISE THE WRITEOFF TO 25000 WHILE THE SENATE VERSION OF THE BUDGET BILL WOULD ALLOW 20500 RR WILLIAMSON PRESIDENT OF BAG CORP SAID REPLACING JUST ONE OF THE DOZENS OF INDUSTRIAL SEWING MACHINES ON THE FIRM'S ASSEMBLY LINE COSTS 12000 BUY TWO AND WE'RE ALREADY AT YOUR EXPENSING CAP HE SAID MR GORE CONCEDED THAT THE EXPENSING PROVISION WOULD BE A BIGGER BOOST TO FIRMS SMALLER THAN BAG WHICH HAD 30 MILLION IN SALES LAST YEAR FROM MILWAUKEE JOHN STOLLENWERK PRESIDENT OF ALLEN EDMOND SHOE CORP WONDERED IF MR GORE COULD INCORPORATE MEN'S SHOES INTO THE TRADE AGREEMENT WITH JAPAN HOW ABOUT A GOAL OF ONE MILLION PAIRS OF MEN'S SHOES HE ASKED MR GORE SAID HE DIDN'T HEAR SPECIFIC MENTION OF MEN'S SHOES IN THE TRADE TALKS BUT HE ADDED THAT MR CLINTON WAS A FAN OF THE FIRM'S PRODUCT HE ORDERED A PAIR FOR THE INAUGURAL BALL HE WEARS THEM A LOT MR GORE SAID DURING THE WHITE HOUSE LUNCH MR CLINTON TOOK NOTES AS VARIOUS COMPANY LEADERS VOICED THEIR CONCERNS JAMES MADARA SENIOR VICE PRESIDENT OF GANNETT FLEMING INC HARRISBURG PA A HIGHWAY AND BRIDGE DESIGN FIRM SAID THE PRESIDENT STAYED LONGER THAN ANY OF HIS RIGHT ARMS REFERRING TO TOP WHITE HOUSE AIDES HE'S DONE SOME FAVORABLE THINGS FOR OUR INDUSTRY BUT I DON'T KNOW WHAT THE FINAL RECONCILIATION BILL WILL LOOK LIKE MR MADARA SAID MEANWHILE ON CAPITOL HILL A CHORUS OF HOUSE DEMOCRATS DELIVERED SPEECHES STRESSING OTHER SMALLBUSINESS ELEMENTS OF THE BUDGET BILL SUCH AS EXTENSIONS OF THE RESEARCH AND DEVELOPMENT TAX CREDIT AND A MUNICIPALBOND FINANCING AUTHORITY AIMED AT SMALL COMPANIES 9307220085 930722 BUSINESS BRIEF RADIUS INC RESTRUCTURING CHARGE LEADS TO FISCAL 3RDQUARTER LOSS RADIUS INC SAN JOSE CALIF REPORTED A LOSS FOR ITS FISCAL THIRD QUARTER ON A 155 MILLION RESTRUCTURING CHARGE IN THE PERIOD ENDED JUNE 30 THE COMPANY POSTED A LOSS OF 115 MILLION OR 84 CENTS A SHARE COMPARED WITH NET INCOME OF 25 MILLION OR 17 CENTS A SHARE A YEAR EARLIER THE COMPUTER SCREEN MAKER SAID REVENUE FELL MORE THAN 25 TO 321 MILLION FROM 442 MILLION RADIUS BLAMED ITS WOES ON LOWER MARGINS HIGH INVENTORIES EXCESS SPENDING AND OPERATIONAL LOSSES THE 155 MILLION CHARGE COVERS INVENTORY WRITEDOWNS AND COMPANY REORGANIZATION 9307220084 930722 BUSINESS BRIEF MICHAEL BAKER CORP AN EXTRAORDINARY CHARGE TO CAUSE 2NDQUARTER LOSS MICHAEL BAKER CORP SAID AN EXTRAORDINARY CHARGE WILL LEAD IT TO POST A LOSS FOR ITS SECOND QUARTER AND FIRST SIX MONTHS AND POSSIBLY FOR ALL OF 1993 THE BEAVER PA ENGINEERING AND CONSTRUCTION COMPANY SAID THE CHARGE OF AT LEAST 3 MILLION BEFORE TAXES OR 20 CENTS A SHARE WILL COVER THE REORGANIZATION OF A UNIT AND ACCOUNT FOR THE COMPLETION OF VARIOUS MILITARY PROJECTS EXCLUDING THE CHARGE MICHAEL BAKER SAID ITS SECONDQUARTER RESULT WOULD BE IN LINE WITH ANALYSTS' FORECASTS OF 12 CENTS TO 14 CENTS A SHARE IN THE YEARAGO QUARTER MICHAEL BAKER HAD NET INCOME OF 11 MILLION OR 18 CENTS A SHARE ON REVENUE OF 805 MILLION THE CHARGE WAS ANNOUNCED AFTER THE STOCK MARKET CLOSED YESTERDAY IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING MICHAEL BAKER WAS UNCHANGED AT 11 9307220083 930722 LEISURE & ARTS TOP 10 PRIMETIME PROGRAMS COMPILED BY NIELSEN MEDIA RESEARCH COPYRIGHT 1993 9307220082 930722 LEISURE & ARTS BOOKSHELF TWO TOMES FOR HILLARY BY GEORGE ANDERS IMAGINE A WORLD IN WHICH A MEDICAL REGULATORY COMMISSION SETS ETHICAL GUIDELINES THAT ALL PHYSICIANS MUST FOLLOW DOCTORS COULD LOSE THEIR LICENSES IF THEY TAKE KICKBACKS FROM HOSPITALS BUY MINORITY STAKES IN TESTING LABS OR DO ANYTHING THAT THIS POWERFUL NEW AGENCY DOESN'T LIKE OR IF YOU PREFER CONSIDER HOW MEDICINE COULD BE TRANSFORMED BY RADICALLY DIFFERENT PAY SCALES FEES COULD BE SLASHED FOR HEART SURGEONS AND OTHER SUPERSPECIALISTS NO LONGER WOULD SURGEONS GET BIG MONEY FOR DRASTIC ATTEMPTS TO HEAL THE SICKEST OF PATIENTS INSTEAD FAMILYPRACTICE DOCTORS WOULD BE BETTER REWARDED FOR SIMPLE BUT VALUABLE SERVICES SUCH AS HIGHBLOODPRESSURE SCREENING AS THOSE IDEAS SUGGEST HEALTHCARE THEORISTS ARE BURSTING WITH WAYS TO FIX AMERICA'S MEDICAL SYSTEM THESE SPECIFIC PROPOSALS IN FACT ARE JUST TWO SUGGESTIONS MADE IN A PAIR OF NEW BOOKS MEDICINE MONEY AND MORALS OXFORD UNIVERSITY PRESS 411 PAGES 25 BY MARC A RODWIN AND MEDICINE AT THE CROSSROADS PANTHEON 298 PAGES 23 BY MELVIN KONNER THE RECOMMENDATIONS MADE IN THESE BOOKS RANGE FROM SENSIBLE TO ECCENTRIC BUT THEY ARRIVE AT A PROPITIOUS TIME JUST WHEN THE WHITE HOUSE IS CONFRONTING THE DIFFICULTIES OF HEALTHCARE REFORM A DARING AND OFTEN EXASPERATING BATCH OF PROPOSALS COMES FROM MR RODWIN AN ASSOCIATE PROFESSOR OF LAW AND PUBLIC POLICY AT INDIANA UNIVERSITY INSISTING THAT SELFINTERESTED DOCTORS TOO OFTEN PUT FINANCIAL GAIN AHEAD OF PATIENTS' WELFARE HE ARGUES VEHEMENTLY FOR TIGHTER REGULATION AND PULLS OUT ONE HORROR STORY AFTER ANOTHER TO MAKE HIS POINT MR RODWIN TELLS OF COURT DOCUMENTS SHOWING THAT ONE HEART SURGEON GOT 238000 IN PAYMENTS FROM PACEMAKER MANUFACTURERS FOR INSTALLING 474 OF THEIR DEVICES FROM 1979 TO 1983 THE SURGEON WHO WAS LATER CONVICTED OF TAKING KICKBACKS AT ONE POINT REPORTEDLY INSTALLED TWO PACEMAKERS IN ONE PERSON PRESUMABLY AS A WAY TO MAKE MONEY EVEN FASTER MOST OF MR RODWIN'S EXAMPLES TANTALIZE US WITH THE SUGGESTION THAT FINANCIAL INCENTIVES MIGHT LEAD TO BAD MEDICINE BUT NEVER QUITE SHOW THAT THIS HAPPENS IN ONE THREEPAGE SPAN FOR EXAMPLE HE FOOTNOTES 39 WAYS THAT PHARMACEUTICAL SALESMEN PLY PHYSICIANS WITH GOODIES RANGING FROM STETHOSCOPES TO SUPER BOWL TICKETS BUT DID ANY OF THIS COMPROMISE DOCTORS' COMMITMENTS TO PRESCRIBE THE RIGHT MEDICINE HE DOESN'T PROVE THAT AS A RESULT MR RODWIN'S CLOSING CALL FOR RADICAL REFORM RESTS ON SHAKY GROUND HE WANTS MORE OUTSIDE WATCHDOGS FOR HEALTH CARE EITHER IN THE FORM OF A MEDICAL REGULATORY COMMISSION OR A NEW TYPE OF MEDICAL AUDITOR OF HOSPITALS' PRACTICES THESE NEW ENTITIES WOULD GREATLY LIMIT DOCTORS' ABILITY TO GET RICH THROUGH FINANCIAL INTERACTIONS WITH OTHER HEALTHCARE PLAYERS MR RODWIN DOESN'T MIND THAT THESE PROPOSALS WOULD AS HE PUTS IT DISTRESS THE MEDICAL PROFESSION HE REGARDS THE CONFLICTS OF INTEREST AMONG MEDICINE MONEY AND MORALS AS SO SEVERE THAT MONEY OUGHT TO BE TAKEN OUT OF THE EQUATION SKEPTICAL READERS MAY WONDER THOUGH IF THIS GOVERNMENTINTENSIVE APPROACH WOULD DEADEN HEALTH CARE SUCH A SWEEPING APPROACH MIGHT LEAVE US WITH PHYSICIANS WHO WERE NOTHING BUT CAUTIOUS RULEFOLLOWERS APPREHENSIVE OF ANYTHING THAT MIGHT HAVE AN ELEMENT OF RISK BUT ULTIMATELY ADVANCE MEDICINE BY CONTRAST DR KONNER IS MUCH CLOSER TO MAINSTREAM THINKING ON THE HEALTH SYSTEM'S AILMENTS AND POTENTIAL REMEDIES IN MEDICINE AT THE CROSSROADS HE ADVOCATES SUCH OFTFAVORED STEPS AS MALPRACTICE REFORM A GREATER EMPHASIS ON PREVENTIVE CARE AND LIMITS ON EFFORTS TO EXTEND THE LIVES OF THE NEARLY DEAD HIS BOLDEST PLEA IS FOR A GOVERNMENTRUN SINGLEPAYER INSURANCE SYSTEM MUCH LIKE THAT FOUND IN CANADA OR BRITAIN THE BEST PARTS OF DR KONNER'S BOOK COME EARLY ON WHEN HE SPINS STORIES ABOUT HOW MEDICINE IS PRACTICED AN MD HIMSELF HE HOLDS FACULTY POSITIONS IN ANTHROPOLOGY PSYCHIATRY AND NEUROLOGY AT ATLANTA'S EMORY UNIVERSITY AND HE KNOWS HIS STUFF TO MAKE HIS POINT ABOUT AMERICA'S LACK OF PRIMARY CARE HE TAKES US ON A TOUR OF BALTIMORE JUXTAPOSING THE HIGHTECH MEDICAL MARVELS AT JOHNS HOPKINS UNIVERSITY WITH THE CHRONIC UNMET NEEDS OF THE SURROUNDING AREA SOME OF DR KONNER'S EXAMPLES ARE TAKEN FROM A BBC DOCUMENTARY THAT RECENTLY AIRED IN THE US AS PART OF A PBS SERIES ON MEDICINE HIS BOOK IN FACT IS MEANT IN PART TO BE A COMPANION TO THAT SERIES BUT HE INJECTS HIS OWN PERSPECTIVE TO GOOD ACCOUNT WHEN DR KONNER DISCUSSES THE FADDISH NATURE OF SURGERY FOR EXAMPLE HE COMPARES THE RECENT FLURRY OF ARTERY BYPASSES WITH EARLIER WAVES OF TONSILLECTOMIES AND FRONTAL LOBOTOMIES IN EACH CASE HE SAYS DOCTORS BECAME A LITTLE TOO SURE OF THEMSELVES RUSHING TO MAKE A NEW OPERATION COMMONPLACE BEFORE FINDING OUT WHETHER IT REALLY WORKED OR NOT AS BOTH BOOKS MAKE CLEAR IT'S OFTEN EASIER IN HEALTHCARE REFORM AS IN MEDICINE ITSELF TO DIAGNOSE PROBLEMS THE HARD PART IS TO FIND THE CURE THAT'S ESPECIALLY TRUE IN ATTEMPTING A SYSTEMWIDE REFORM WHERE QUESTIONS OF COST AND SOCIETAL TOLERANCE OF CHANGE MAKE IT EXTRA HARD TO TAKE BIG STEPS WHILE THE WHITE HOUSE TRIES TO FORMULATE ITS PLAN THOUGH BOTH BOOKS OFFER INNOVATIVE IDEAS ABOUT WHERE TO START MR ANDERS WRITES ON HEALTH CARE FOR THE JOURNAL 9307220081 930722 OFF AND RUNNING PUSHING US STYLE NIKE AND REEBOK SELL SNEAKERS TO EUROPE CATCHY ADS BASKETBALL STARS AND SLICK DESIGNS MAKE INROADS AGAINST RIVALS DON'T TRASH THOSE WINGTIPS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL THESE DAYS CHANEL MODELS STRUT DOWN FASHION RUNWAYS IN PARIS WEARING CANVAS HIGHTOP SNEAKERS A STANDARD OUTFIT FOR AUSTRIAN PRINCE KARL VON HABSBURG IS A COAT TIE BLACK DENIM SLACKS AND MATCHING REEBOKS AND AT THE MUSIC HALL DANCE CLUB IN FRANKFURT COLLEGE STUDENT HANS GUNTHER IS TURNED OUT IN A BLACK CAP WITH THE LOGO OF THE LOS ANGELES RAIDERS FOOTBALL TEAM AN ORANGE UNIVERSITY OF MIAMI JERSEY AND A PAIR OF METALLICBLUE NIKE AIR MAXES I LIKE THIS LOOK IT'S AMERICAN SAYS MR GUNTHER STEPPING OFF THE DANCE FLOOR AND THE RAIDERS THEY PLAY BASEBALL YES THEY MUST BECAUSE I HAVE THIS BASEBALL CAP ALTHOUGH US SPORTS MAY NOT YET PERFECTLY TRANSLATE NIKE AND REEBOK DO TOGETHER THE US COMPANIES ARE JOGGING ACROSS EUROPE WITH A VENGEANCE OVERCOMING 30 EUROPEAN COMMUNITY DUTIES TO THRASH THE LOCAL COMPETITION THANKS TO MARKETING APPEALING DESIGNS AND EUROPEAN YOUTHS' FASCINATION WITH THINGS AMERICAN NIKE INC AND REEBOK INTERNATIONAL LTD HAVE SURGED TO A 50 MARKET SHARE FROM LESS THAN 5 JUST A DECADE AGO AND VASTLY EXPANDED THE MARKET WHILE DOING SO SNEAKERS AND BLUEJEANS USED TO BE DEAD GIVEAWAYS THAT AN AMERICAN TOURIST WAS IN TOWN SAYS BRUCE STEINBERG FORMER HEAD OF MARKETING FOR MTV EUROPE BASED IN LONDON NOW THERE'S A GOOD CHANCE THAT CASUAL DRESSER IS ONE OF US FOR DECADES EUROPE'S ADIDAS AG AND PUMA AG MADE SHOES FOR ATHLETICS BUT NIKE AND REEBOK HAVE TAKEN SNEAKERS IN EUROPE FROM THE PLAYING FIELD TO THE STREET NIKE AND REEBOK EACH SPEND BETWEEN 80 MILLION AND 100 MILLION IN EUROPE ON ADVERTISING AND PROMOTIONS SURPASSING ADIDAS'S 60 MILLION ACCORDING TO THE EUROPEAN EDITION OF SPORTING GOODS INTELLIGENCE A NEWSLETTER THE AD BLITZ ALONG WITH MESSAGES FROM PEPSICO INC LEVI STRAUSS & CO AND MCDONALD'S CORP IS IMBUING EUROPE PARTICULARLY ITS YOUNG WITH MORE OF AN AMERICAN SOUL AMERICA'S IMAGE MAY BE THE LAST REMAINING EXPORT BY US FIRMS SAYS MICHAEL ATMORE PUBLISHER OF FOOTWEAR PLUS A TRADE MAGAZINE NIKE AND REEBOK HAVE EXPLOITED BASKETBALL'S SURGING POPULARITY ON THE CONTINENT HELPED BY THE 1992 OLYMPIC DREAM TEAM WITH ADVERTISING FEATURING NATIONAL BASKETBALL ASSOCIATION STARS AND NIKE HAS EVEN DISPATCHED CHARLES BARKLEY OF THE PHOENIX SUNS AND THE CHICAGO BULLS' MICHAEL JORDAN ON EUROPEAN JAUNTS SIGNING AUTOGRAPHS AND PARTICIPATING IN BASKETBALL CLINICS THIS SUMMER REEBOK WILL SEND SHAQUILLE O'NEAL OF THE ORLANDO MAGIC OVERSEAS AS THE COMPANY'S 3 MILLION AMBASSADOR IN CREATING AN IMAGE OF SNEAKERS AS FASHIONABLE FOOTWEAR THE COMPANIES HAVE BEEN DOING MORE THAN SELLING SHOES THEY HAVE BEEN SELLING AMERICA THE POPULARITY OF SNEAKERS IN EUROPE AT 45 BILLION SALES ARE MORE THAN DOUBLE THEIR 1985 LEVEL IS ALL THE MORE REMARKABLE BECAUSE OF THE DISDAIN WITH WHICH THEY WERE ONCE REGARDED IT WASN'T THAT LONG AGO THAT EUROPE HOME OF FINE LEATHER SHOES EXILED SNEAKERS TO SCHOOL GYMS AND TENNIS COURTS WHEN JOSEF FISHER A MEMBER OF WEST GERMANY'S PARLIAMENT WORE SNEAKERS TO THE OFFICE 15 YEARS AGO HE WAS FEATURED ON THE EVENING NEWS THE PROBLEM THE COMPANIES' SHOES WERE VIEWED AS CHEAP BECAUSE OF LABELS SAYING THEY WERE MADE IN KOREA OR TAIWAN ON THE OTHER HAND ADIDAS ALTHOUGH IT NOW MAKES SHOES IN ASIA WAS VIEWED AS A EUROPEAN OR USMADE SHOE WE REALLY GOT OFF TO A SLOW START SAYS JERRY CONLON A MARKETING DIRECTOR FOR NIKE THAT WAS 10 YEARS AGO BOTH CONCERNS CURRENTLY EMPHASIZE UNIVERSAL LOGOS TO KEEP THEIR MESSAGES CLEAR AND THEIR PRODUCTS DESIRABLE NIKE'S MR CONLON SAYS THAT THE DESIGN OF A SHOE ALSO IS IMPORTANT THAT IS WHY THE COMPANY INTRODUCES 800 DIFFERENT STYLES A YEAR IT'S EASY TO SHARE FOOD MUSIC AND FASHION GLOBALLY HE SAYS THESE ARE SUPERFICIAL EVENTS THAT TRANSCEND LANGUAGE AND CULTURAL BARRIERS THIS HAS LED TO THE EMERGENCE OF A GLOBAL TEEN PHENOMENON YOUTHS ALL OVER THE WORLD EATING THE SAME FOODS AND DRESSING ALIKE BUT SNEAKERS AREN'T JUST FOR KIDS THE SHOES ARE ACCEPTABLE WEAR FOR ALMOST ANYBODY NOW IN FRANKFURT RABBI ERICH GUTTENBERG WEARS A YAMALKA AND AN ANKLELENGTH ROBE OVER A PAIR OF NIKE AIR JORDANS TO A DOWNTOWN RALLY PROTESTING SKINHEAD VIOLENCE DANNY VRIENS AN OFFDUTY POLICEMAN IN AMSTERDAM HOPES TO IMPRESS DUTCH DAMSELDOM AS HE PUTTS AROUND ON A MOTORCYCLE IN A US FIGHTERPILOT HELMET LEVI'S AND WHITE REEBOKS GIRLS LIKE THIS HE SAYS EUROPE'S CHANGING TASTE IS YIELDING BIG SALES FOR THE US FIRMS NIKE'S REPORT FOR FISCAL 1993 WHICH ENDED ON MAY 31 INCLUDES 11 BILLION OF NIKE SNEAKER SALES IN EUROPE UP 25 FROM LAST YEAR AND NEARLY SIX TIMES THE 1987 FIGURE NOT FAR BEHIND IS REEBOK WHOSE SALES IN EUROPE THIS YEAR WILL BE ABOUT 1 BILLION FORECASTS JOHN DUERDEN PRESIDENT OF REEBOK'S INTERNATIONAL DIVISION THAT WOULD MARK A 30 INCREASE OVER LAST YEAR AND 10 TIMES 1987 SALES THE RECESSION HAS SLOWED THE PACE A STEP WITH NIKE SALES GAINS GROWING 15 AND REEBOK'S ABOUT FLAT BUT LOOKING AHEAD ANALYSTS ARE OPTIMISTIC GARY JACOBSON ANALYST FOR KIDDER PEABODY & CO PREDICTS THAT BY 1996 NIKE AND REEBOK WILL HAVE COMBINED SALES OF MORE THAN 3 BILLION IN EUROPE SOLIDIFYING THE US'S DOMINANCE ABROAD FOR THE SAKE OF NIKE AND REEBOK HE HAD BETTER BE RIGHT AFTER DOUBLEDIGIT GROWTH IN THE 1980S THE US MARKET MAY BE SATURATED MANY AMERICANS AGED 25 YEARS AND YOUNGER THE PRIME SNEAKER CUSTOMERS ALREADY OWN SIX TO 10 PAIRS EACH ACCORDING TO JOHN HORAN OF THE SPORTING GOODS INTELLIGENCE NEWSLETTER BUT EUROPE'S APPETITE COULD STILL GROW LAST YEAR ABOUT 400 MILLION PAIRS OF ATHLETIC FOOTWEAR WERE SOLD IN THE US HOWEVER EUROPE WITH 130 MILLION MORE PEOPLE THAN THE STATES BOUGHT ONLY 120 MILLION PAIRS THE LARGEST BUYING GROUP THOSE IN THEIR TEENS AND 20S OWN AN AVERAGE OF JUST TWO PAIRS EACH NOW'S THE TIME TO STEAL CUSTOMERS NOW'S THE TIME TO SEIZE THE DAY SAYS MR CONLON NIKE'S MARKETING EXECUTIVE BOTH COMPANIES PREDICT THAT BY 1996 NEARLY HALF OF THEIR BUSINESS WILL BE DONE OVERSEAS MOST OF IT IN EUROPE EUROPE IS TODAY WHERE AMERICA WAS IN 1984 SAYS JEANMARC GAUCHER GENERAL MANAGER OF REEBOK'S FRENCH SUBSIDIARY SELLING EUROPE HARDER WON'T BE A SLAM DUNK RIGHT NOW NIKE AND REEBOK EACH HAVE ABOUT 25 OF THE MARKET BUT ADIDAS THOUGH HOBBLED BY DEBT REMAINS WELL ENTRENCHED IN AMATEUR SPORTS THROUGH SPONSORSHIPS THE GERMAN SPORTINGGOODS COMPANY HAS A 22 MARKET SHARE AND STILL COMMANDS GREAT BRAND LOYALTY AMONG THE 35ANDOLDER GENERATION AND AMONG SOCCER FANS ADIDAS ALSO HAS SOMETHING THE AMERICANS DON'T AN ARMY OF ATHLETIC YOUTHS PAID BY THE COMPANY TO WEAR ADIDAS IN PUBLIC THESE WALKING BILLBOARDS ALSO ARE PAID TO WORK AT SPORTINGGOODS STORES WHERE THEY STEER CUSTOMERS TO ADIDAS DISPLAYS NIKE AND REEBOK CUSTOMERS HOWEVER HAVE BECOME PROMOTERS FOR FREE SEE THAT GUY OVER THERE ASKS TINO SCHRIER AN AMSTERDAM CABDRIVER POINTING TO A PEDESTRIAN DRESSED IN A NEW YORK YANKEE JERSEY BLUEJEANS AND GREENSTRIPED AIR JORDANS I CAN SMELL AN AMERICAN ANYWHERE SAYS MR SCHRIER BUT THAT'S A DUTCHMAN WHY HE LOOKS TOO MUCH LIKE AN AMERICAN STILL NOT ALL EUROPEANS ARE READY TO TRADE IN THEIR OXFORDS MANY CALL THE DAILY SPECTACLE IN THE US OF WOMEN WALKING TO WORK IN SNEAKERS AN EYESORE THAT'S OUR DEFINITION OF AN UGLY AMERICAN SAYS GUILLIERMO BORDIN A HAIRDRESSER IN MILAN LA DEGRADATION SAYS CLAUDE VIRLOIRE DIRECTOR OF A FASHIONABLE HORTICULTUREDESIGN ACADEMY IN PARIS ECOLE DU BREUIL NOT TO POLISH YOUR SHOES IS ONE THING BUT SNEAKERS I THINK THEY'RE WORSE SHE SAYS THE MAIN OBJECTION TO SNEAKERS LATELY HAS BEEN THEIR PRICE WHICH CAN RANGE FROM 80 TO NEARLY 200 IN EUROPE FOLLOWING A CLASSROOM DISCUSSION ABOUT SNEAKERS AT THE ALSACIENNE SCHOOL IN PARIS DEAN PIERE DE PANAFIEU HAD ONE QUESTION WHY DID THEY ONCE COST ONLY A FIFTH OF DRESS SHOES AND NOW NEARLY TWICE AS MUCH INDEED A GENERATIONAL WAR NOT UNFAMILIAR TO AMERICANS HAS DEVELOPED OVER SNEAKERS MS VIRLOIRE HAS REACHED A TRUCE WITH HER 14YEAROLD DAUGHTER LISE A REEBOK FAN LISE CAN BUY LESSEXPENSIVE SNEAKERS THAN THE US IMPORTS WHICH HER MOTHER REGARDS AS TOO DEAR ALTHOUGH THE AMERICANS LEAVE MANY ADVERTISING SLOGANS IN ENGLISH YOUTH CULTURE'S LINGUA FRANCA CULTURAL DIFFERENCES AREN'T IGNORED REEBOK FOR INSTANCE DELETED WEIGHTLIFTING AND BOXING FROM PLANET REEBOK COMMERCIALS IN FRANCE BECAUSE OF THE LOCALS' AVERSION TO VIOLENCE SHOTS OF WOMEN RUNNING ON THE BEACH ARE USED INSTEAD BUT BECAUSE SNEAKERS' MAIN ALLURE IS THEIR AMERICAN STYLE NIKE AND REEBOK HAVE OFTEN CONCLUDED THAT THE MORE AMERICAN A COMMERCIAL THE BETTER IN PRINT ADVERTISING OR ON TV TAGLINES IN ITALY GERMANY THE NETHERLANDS OR FRANCE ALL READ THE SAME WAY IN ENGLISH JUST DO IT AND PLANET REEBOK BUT MARKETING GOES BEYOND ADVERTISING SUBTLETIES IN PERSONAL RELATIONSHIPS ALSO COUNT EUROPEANS WON'T DO BUSINESS WITH YOU NO MATTER HOW LUCRATIVE UNLESS THEY LIKE YOU SAYS MARTIN BERENDSEN GENERAL MANAGER OF REEBOK'S SUBSIDIARY IN THE NETHERLANDS GETTING THE SHOE IN THE RIGHT PLACE ALSO IS IMPORTANT SINCE EUROPEANS DON'T PLAY SPORTS AS MUCH AS AMERICANS THEY DON'T VISIT SPORTINGGOODS STORES AS OFTEN REALIZING THIS REEBOK STARTED SELLING ITS SHOES IN ABOUT 800 TRADITIONAL SHOE SHOPS IN FRANCE THAT HAS HELPED THE COMPANY DOUBLE ITS FRENCH SALES LAST YEAR TO ABOUT 150 MILLION FROM 75 MILLION THE PREVIOUS YEAR SAYS MR GAUCHER NIKE WHOSE APPEAL IS STRONG AMONG THOSE 21 AND YOUNGER OUTSELLS REEBOK IN MOST EUROPEAN COUNTRIES REEBOK LEADS IN FRANCE SPAIN AND ENGLAND BUT EUROPEANS OFTEN MENTION BOTH COMPANIES IN THE SAME BREATH STYLES CAN DIFFER SLIGHTLY FROM COUNTRY TO COUNTRY IN FRANCE SOME YOUTHS WEAR THEIR SNEAKERS WITH THE PRICE TAGS STILL HANGING ON THEM IN THE NETHERLANDS THE 25 AND OLDER CROWD PREFER PLAIN OFFWHITE WHILE THE YOUNG OPT FOR LIVELIER COLORS THIS PHENOMENON HAS PROMPTED REEBOK'S FORTYISH MR BERENDSEN TO CONCLUDE IF I LIKE THE SHOE THE STREET KID'S NOT GOING TO LIKE IT IF I DON'T LIKE THE SHOE LET'S TRY SELLING IT TO OUR YOUTH HOW BIG THE MARKET WILL GET IN EUROPE TO A LARGE EXTENT DEPENDS ON WHETHER THE CURRENT SNEAKER GENERATION WILL CARRY ITS CASUAL ATTITUDES IN CLOTHING AND SHOES INTO ADULTHOOD AND THE WORKADAY WORLD SOME FOLKS LIKE MARCUS ZELLER OF FRANKFURT SAY THEY HAVE NO DOUBT I HOPE TO BE WEARING SNEAKERS UNTIL I'M 80 YEARS OLD HE SAYS 9307220080 930722 INTERNATIONAL FRANCE PINPOINTS 4 STATE COMPANIES FOR PRIVATIZATION BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT NAMED THE FOUR COMPANIES THAT WILL OPEN ITS AMBITIOUS PRIVATIZATION PROGRAM THE FIRST TWO COMPANIES TO BE PRIVATIZED WILL BE ONE OF FRANCE'S LARGEST BANKS BANQUE NATIONALE DE PARIS AND RHONEPOULENC SA A MAJOR CHEMICALS AND DRUGS MANUFACTURER THE GOVERNMENT SAID BOTH GROUPS WILL BE BROUGHT TO THE MARKET DURING THE FALL IF MARKET CONDITIONS PERMIT THE OTHER TWO COMPANIES IN THE FIRST BATCH ARE OIL CONCERN SOCIETE NATIONALE ELF AQUITAINE AND A SMALL RETAIL BANK BANQUE HERVET SHORTLY BEFORE THE FRENCH GOVERNMENT'S ANNOUNCEMENT US AMBASSADOR PAMELA HARRIMAN CRITICIZED FRANCE FOR ITS PROTECTIONIST ATTITUDE REGARDING NONEUROPEAN COMMUNITY INVESTORS MRS HARRIMAN WHO UNTIL NOW HAS AVOIDED CONTROVERSY IN HER NEW POST AS US ENVOY TO FRANCE TOLD A MEETING OF BUSINESS LEADERS THAT SHE WAS CONCERNED ABOUT THE 20 CEILING ON NONEC INVESTMENTS IN FRANCE'S STATEOWNED COMPANIES SOON TO BE PRIVATIZED ACCORDING TO THE PRIVATIZATION LAW PASSED BY THE FRENCH PARLIAMENT THIS MONTH NONEC INVESTORS CAN'T TAKE MORE THAN A 20 STAKE TOGETHER IN EACH COMPANY AT THE TIME OF PRIVATIZATION A FINANCE MINISTRY OFFICIAL CONFIRMED YESTERDAY THAT THE CONTROVERSIAL AMENDMENT WHICH WAS ADDED AT THE LAST MINUTE AS A SOP TO DISSIDENT MEMBERS OF THE CONSERVATIVE COALITION GOVERNMENT MEANS THE 20 LIMIT WILL APPLY TO NONEC STAKES TAKEN AS A WHOLE AND NOT INDIVIDUALLY FOR EXAMPLE US JAPANESE AND SWEDISH INVESTORS TOGETHER CAN'T TAKE UP MORE THAN 20 OF BNP'S SHARES AT THE TIME OF THE STATE SALE THE ONLY EXCEPTION WILL BE IF THE NONEC INVESTORS HAVE A PARTNERSHIP AGREEMENT WITH THE FRENCH COMPANY AS WITH SWEDEN'S VOLVO AND FRENCH AUTO MAKER RENAULT SA THE FINANCE MINISTRY OFFICIAL ALSO EXPLAINED YESTERDAY THAT THE 20 RESTRICTION WILL APPLY ONLY TO NONEC INVESTMENTS AT THE TIME OF THE PRIVATIZATION ONCE THE INITIAL PLACEMENT IS COMPLETED THERE WILL BE NO LIMIT ON NONEC HOLDINGS SHE SAID THE GOVERNMENT'S CHOICE OF THE OPENING FOUR CANDIDATES FOR THE PRIVATIZATION PROGRAM CAME AS LITTLE SURPRISE THE THREE MAJOR GROUPS RHONEPOULENC ELF AND BNP ARE CONSIDERED WIDELY AS THE MOST ATTRACTIVE FRENCH STATEOWNED COMPANIES TO PRIVATE INVESTORS EACH RANKS AMONG THE LARGEST EUROPEAN PLAYERS IN ITS INDUSTRY EACH IS TRADED ON THE FRENCH STOCK MARKET AND EACH IS PROFITABLE THE SMALLER BANQUE HERVET ISN'T PUBLICLY TRADED BUT CREDIT COMMERCIAL DE FRANCE WHICH WAS SOLD OFF BY THE STATE UNDER THE PREVIOUS CONSERVATIVE GOVERNMENT IN 1987 OWNS 34 OF THE COMPANY'S CAPITAL AND CLAIMS HERVET AS PART OF THE ITS INDUSTRIAL STRATEGY THE FINANCE MINISTRY DIDN'T GIVE FURTHER INFORMATION ABOUT THE ASSET SALES MOST OF THE DETAILS OF EACH TRANSACTION WILL BE ARRANGED BY A PRIVATIZATION COMMISSION WHICH HASN'T BEEN NAMED ALTHOUGH THE FRENCH NATIONAL TELECOMMUNICATIONS OPERATOR FRANCE TELECOM DOESN'T APPEAR ON THE GOVERNMENT'S MASTER LIST OF 21 STATEOWNED COMPANIES TO BE SOLD A GOVERNMENT REPORT RELEASED YESTERDAY RECOMMENDED THAT THE COMPANY BE PRIVATIZED AT LEAST PARTIALLY THIS WOULD ALLOW IT TO COMPETE ON EVEN FOOTING AND TO FORGE STRATEGIC ALLIANCES WITH OTHER OPERATORS THE REPORT SAID 9307220079 930722 AT&T TO UNVEIL MANAGEMENT SHAKEUP STRESSING GLOBALIZATION AND MULTIMEDIA BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO IS EXPECTED TO ANNOUNCE TODAY A HIGHLEVEL MANAGEMENT REORGANIZATION ACCORDING TO INDIVIDUALS CLOSE TO THE COMPANY THEY SAID AT&T CHAIRMAN ROBERT E ALLEN HAS REVAMPED AT&T'S UPPER RANKS IN THE BIGGEST MANAGEMENT RESTRUCTURING SINCE AT&T'S HOSTILE TAKEOVER OF NCR CORP TWO YEARS AGO AND THE COMPANY'S RESTRUCTURING INTO BUSINESS UNITS IN 1988 IN ADDITION MR ALLEN WILL NAME RICHARD MILLER FORMER CHAIRMAN OF WANG LABORATORIES INC TO BE AT&T'S NEW EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT&T DECLINED TO COMMENT ON THE MANAGEMENT CHANGES WHICH WERE APPROVED YESTERDAY BY DIRECTORS AND BECOME EFFECTIVE AUG 1 THE CHANGES REFLECT MR ALLEN'S DESIRE TO ACCELERATE AT&T'S GLOBALIZATION AND MOVE INTO MULTIMEDIA PRODUCTS AND COMMUNICATIONS SERVICES INSIDERS SAID MR ALLEN HAS SAID HE WANTS AT LEAST 50 OF AT&T'S REVENUE TO COME FROM OVERSEAS FROM THE CURRENT 25 BY THE END OF THE DECADE AND HE HAS BEGUN INSTALLING COUNTRY AND REGIONAL MANAGERS TO BUILD MINIAT&TS TO DO JUST THAT IN KEY MARKETS SUCH AS CHINA AND SPAIN NOW MR ALLEN HAS ELEVATED AT&T'S MOST SENIOR EXECUTIVES AND EXPANDED THE MANAGEMENT ROLES OF SEVERAL OTHERS AS HE CONTINUES THIS QUEST SOME OF THE SPADE WORK FOR THIS EXPANSION HAD ALREADY BEEN DONE BY FORMER VICE CHAIRMAN RANDALL TOBIAS WHO RECENTLY LEFT AT&T TO BECOME THE CHAIRMAN OF ELI LILLY AND CO VICTOR PELSON GROUP EXECUTIVE OF AT&T'S HUGE COMMUNICATION SERVICES GROUP WILL BECOME EXECUTIVE VICE PRESIDENT OF AT&T IN CHARGE OF A NEWLY FORMED SEVENMEMBER GLOBAL OPERATIONS TEAM SAID ONE PERSON FAMILIAR WITH THE CHANGES MR PELSON 56 WILL ALSO FUNCTION AS AT&T'S CHIEF OPERATING OFFICER AND WILL BE NAMED TO AT&T'S BOARD SUCCEEDING MR TOBIAS HE SAID SIMILARLY WILLIAM MARX 54 GROUP EXECUTIVE OF AT&T'S NETWORK SYSTEMS GROUP HAS BEEN NAMED EXECUTIVE VICE PRESIDENT HE WILL RETAIN HIS CURRENT DUTIES AS CHIEF EXECUTIVE OF NETWORK SYSTEMS AND WILL PICK UP RESPONSIBILITY FOR WORLDWIDE PURCHASING AT AT&T AND AT&T'S GLOBAL MANUFACTURING PLANNING THE IDEA IS TO HAVE REGIONS STAND ON THEIR OWN A MUCH BETTER GEOGRAPHIC BALANCE INSTEAD OF RUNNING THINGS OUT OF BASKING RIDGE NJ ONE INDIVIDUAL SAID BOTH PELSON AND MARX WILL BE JOINTLY RESPONSIBLE FOR ACCELERATING AT&T'S GLOBAL EXPANSION AND WILL SET UP REGIONAL AND COUNTRY LEADERSHIP STRUCTURE FOR OUR OPERATIONS OVERSEAS MR ALLEN ALSO REVISED THE RESPONSIBILITIES OF THREE OF AT&T'S TOP EXECUTIVES MANAGERS WHOM SOME INSIDERS REGARD AS HAVING THE GREATEST POTENTIAL FOR SUCCEEDING MR ALLEN WHEN HE REACHES MANDATORY RETIREMENT IN SEVEN YEARS MR ALLEN 58 WHO TOOK OVER AS AT&T'S CHAIRMAN FIVE YEARS AGO HAS NEVER NAMED A PRESIDENT AND HAS SAID HE HASN'T ANY IMMEDIATE PLANS TO DO SO ALEX MANDL AT&T'S CHIEF FINANCIAL OFFICER WAS NAMED TO SUCCEED MR PELSON AS HEAD OF COMMUNICATIONS SERVICES A FORMER CHAIRMAN OF SEALAND SERVICES INC MR MANDL 49 HAS WIELDED TREMENDOUS INFLUENCE OVER AT&T'S FINANCIAL MANAGEMENT SINCE MR ALLEN LURED HIM TO THE COMPANY TWO YEARS AGO MR MANDL HAS HELPED STREAMLINE AT&T'S FINANCES DEVELOPING AND ENFORCING NEW COMPENSATION PACKAGES FOR MAKING THE COMPANY MORE PROFITABLE AND COMPETITIVE HE HAS ALSO BECOME AT&T'S CHIEF NEGOTIATOR ON KEY STRATEGIC TRANSACTIONS INCLUDING AT&T'S PLANNED 38 BILLION INVESTMENT IN MCCAW CELLULAR COMMUNICATIONS CO THE NATION'S LARGEST CELLULAR PHONE COMPANY NOW AS AN EXECUTIVE VICE PRESIDENT MR MANDL WILL HEAD AT&T'S CORE LONGDISTANCE SERVICES BUSINESS WHICH ACCOUNTS FOR MORE THAN 40 BILLION OF AT&T'S 65 BILLION IN ANNUAL REVENUE AS WELL AS OTHER BUSINESSES SUCH AS WIRELESS SERVICES AND CREDIT CARDS BOB WANTS TO GIVE ALEX AN OPERATING ROLE AT AT&T SAID ONE INSIDER IN ADDITION ROBERT M KAVNER CURRENTLY GROUP EXECUTIVE OF AT&T'S COMMUNICATIONS PRODUCTS GROUP WAS MADE AN EXECUTIVE VICE PRESIDENT AT&T ALSO EXPANDED THE SCOPE OF HIS GROUP RENAMING IT THE MULTIMEDIA PRODUCTS AND SERVICES GROUP MR KAVNER 50 HAS BEEN AT&T'S POINT MAN IN COMPUTERS PUSHING THE COMPANY'S HOSTILE TAKEOVER OF NCR AND MOVE INTO POCKET DATA COMMUNICATORS AND OTHER MULTIMEDIA PRODUCTS ALLEN IS DETERMINED NOT TO MISS OPPORTUNITIES AS COMMUNICATIONS COMPUTING AND ENTERTAINMENT ARE MERGING SAID ONE INDIVIDUAL FAMILIAR WITH MR KAVNER'S NEW ASSIGNMENT JERRE STEAD CURRENTLY PRESIDENT OF AT&T'S NCR UNIT WAS NAMED AN EXECUTIVE VICE PRESIDENT OF AT&T NAMED TO HIS NEW ASSIGNMENT AT NCR ONLY A FEW MONTHS AGO MR STEAD 50 A FORMER CHAIRMAN OF SQUARE D CORP WILL BE ASKED TO TAKE A MORE ACTIVE ROLE IN HELPING AT&T'S OVERSEAS EXPANSION SINCE HALF OF HIS OPERATIONS ARE OVERSEAS HE'LL WORK MOST CLOSELY WITH PELSON AND MARX ON THE GLOBALIZATION EFFORT AS WELL AN INSIDER SAID MR MILLER A FORMER CHIEF FINANCIAL OFFICER OF RCA CORP WHO MOVED TO GENERAL ELECTRIC CO AFTER ITS TAKEOVER OF RCA IN 1986 JOINED WANG IN 1990 WHEN THE COMPUTER COMPANY WAS STRUGGLING TO REVERSE HUGE LOSSES AND PAY OFF A CUMBERSOME DEBT AN AT&T INSIDER SAID THE 52YEAROLD MR MILLER WAS CHOSEN NOT ONLY FOR HIS FINANCIAL ACUMEN BUT ALSO HIS BACKGROUND IN CONSUMER ELECTRONICS MR MARX'S ELEVATION AND NEW RESPONSIBILITIES OUTSIDE THE NETWORK SYSTEMS GROUP REQUIRED THAT MR ALLEN APPOINT A NEW PRESIDENT AND CHIEF OPERATING OFFICER OF THE GROUP'S GIANT UNIT THAT BUILDS SWITCHING AND TRANSMISSION EQUIPMENT FOR PHONE COMPANIES AND BUSINESSES PROMOTED TO PRESIDENT AND CHIEF OPERATING OFFICER AT THE UNIT ALSO CALLED AT&T NETWORK SYSTEMS IS RICHARD MCGUINN 46 WHO IS CURRENTLY SENIOR VICE PRESIDENT FOR MARKETING AND STRATEGIC PLANNING AT THE UNIT MR ALLEN IS ALSO SAID TO BE EAGER TO SHOW LOWERLEVEL HIGHLY REGARDED EXECUTIVES THAT AT&T IS A BIG COMPANY THAT NONETHELESS OFFERS QUICK ADVANCEMENT IT'S STILL UNCLEAR FROM TODAY'S ANNOUNCEMENT WHAT ADDITIONAL MOVES HE WILL MAKE HOWEVER SOME OF THE BIGGEST CHANGES MAY COME IN MR MANDL'S NEW GROUP THE GIANT COMMUNICATION SERVICES SAID TO BE IN LINE FOR A PROMOTION OR NEW MORE HIGHLY VISIBLE ASSIGNMENT IS JOSEPH NACCHIO NOW PRESIDENT OF AT&T BUSINESS COMMUNICATIONS SERVICES WHICH POSTED ALMOST 20 BILLION IN REVENUE LAST YEAR A COMBATIVE MARKETER AND MAJOR AT&T TACTICIAN MR NACCHIO KEPT AT&T COMPETITIVE IN THE BUSINESS MARKET AGAINST A RELENTLESS MARKETING ASSAULT FROM MCI COMMUNICATIONS CORP AND SPRINT CORP SOME INSIDERS SAID MR MANDL MAY EVENTUALLY ASK MR NACCHIO TO DO THE SAME FOR THE SIMILARLY SIZED AT&T CONSUMER COMMUNICATION SERVICES NOW HEADED BY MERRILL TUTTON THE CONSUMER UNIT'S I PLAN FOR RESIDENTIAL CUSTOMERS WHICH ONE ANALYST LIKENED TO THE INSCRUTABLE INFINITY CAR ADS OF A FEW YEARS AGO HAS FAILED TO STEM LOSSES OF MILLIONS OF CUSTOMERS TO MCI'S SNAPPY FRIENDS & FAMILY AND SPRINT'S SLEEPERHIT THE MOST STAY TUNED SAID ONE PERSON FAMILIAR WITH AT&T'S MANAGEMENT MOVES MORE CHANGES ARE COMING 9307220078 930722 INTERNATIONAL KIM'S POPULARITY INTACT AFTER MOVE ON HYUNDAI STRIKE BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE TRADITION OF QUELLING LABOR UNREST IS ALIVE AND WELL IN DEMOCRATIC SOUTH KOREA BUT NOW IT SEEMS TO PROVOKE A VASTLY DIFFERENT RESPONSE INTERVENING IN A 46DAY STRIKE AT SOME HYUNDAI GROUP FACTORIES PRESIDENT KIM YOUNG SAM USED THE SAME STRONGARM TACTICS THAT EARNED HIS MILITARY PREDECESSORS WIDESPREAD SCORN RIOT POLICE STORMED A HYUNDAI INDUSTRIAL PLANT WEDNESDAY TO EVICT HUNDREDS OF STRIKING UNIONISTS WITHIN HOURS MANAGEMENT AND UNION OFFICIALS AT HYUNDAI MOTOR CO REACHED A TENTATIVE ACCORD TO END THE WALKOUT DESPITE THE SHOW OF FORCE MR KIM'S POPULARITY AND THUS THE MOMENTUM BEHIND HIS LIBERAL AGENDA APPEARS INTACT SOME ANALYSTS EVEN SAY THE TUSSLE BETWEEN UNIONISTS AND RIOT POLICE MAY BOLSTER HIS APPROVAL RATINGS WHICH ALREADY HOVER AT BETWEEN 70 AND 80 THAT IS IN SHARP CONTRAST WITH THE PUBLIC REACTION TO THE GOVERNMENT'S HANDLING OF LABOR UNREST IN THE MID1980S THEN VIOLENT CLASHES BETWEEN WORKERS AND RIOT POLICE SPARKED SOCIAL TURMOIL THAT HELPED END DECADES OF AUTOCRATIC RULE BY GENERALS AND FORMER GENERALS BUT LAST DECEMBER'S ELECTION OF MR KIM KOREA'S FIRST CIVILIAN PRESIDENT AND A FORMER DISSIDENT SATISFIED MANY KOREANS' DESIRE FOR REPRESENTATIVE DEMOCRACY THE ECONOMY MEANWHILE IS STUMBLING THROUGH THE TRANSITION FROM DEVELOPING TO FULLY INDUSTRIALIZED STATUS THE ANNUAL GROWTH IN INDUSTRIAL OUTPUT HAS SLIPPED FROM A DOUBLEDIGIT CLIP IN THE MID1980S TO 48 IN 1992 FORECASTERS EXPECT ONLY SLIGHTLY HIGHER GROWTH THIS YEAR LABOR UNREST NOW IS CONSIDERED MORE A BYPRODUCT OF POOR MANAGEMENT AND UNRULY UNIONS THAN A SYMBOL OF STATE OPPRESSION KOREA'S CONGLOMERATES ARE WIDELY CONDEMNED AS CORRUPT AND INEFFICIENT AT A TIME WHEN ALL WAGE EARNERS ARE SQUEEZED UNION MEMBERS ARE REGARDED AS LESS THE VANGUARD OF POLITICAL CHANGE THAN JUST ANOTHER SPECIALINTEREST GROUP THE HYUNDAI STRIKES HAVE COST THE ECONOMY AN ESTIMATED 500 BILLION WON 6182 MILLION TO 123 TRILLION WON IN LOST PRODUCTION THE MAINSTREAM VIEW IS THAT THE STRIKES WILL HURT THE ECONOMY THAT THE HYUNDAI WORKERS ARE DEMANDING TOO MUCH SAYS AHN CHUNG SI CHAIRMAN OF THE POLITICAL SCIENCE DEPARTMENT AT SEOUL NATIONAL UNIVERSITY THE GOVERNMENT HAS CALCULATED THAT THE PUBLIC IS ON ITS SIDE STRENGTHENING THAT PERCEPTION IS THAT HYUNDAI IS ONE OF THE FEW CONGLOMERATES WITH SERIOUS LABOR PROBLEMS WAGE NEGOTIATIONS AT DAEWOO MOTOR CO AND KIA MOTORS CORP FOR EXAMPLE HAVE BEEN ORDERLY BY COMPARISON A SPOKESMAN AT HYUNDAI MOTOR SAID THE STRIKE HAS COST THE COMPANY OUTPUT TOTALING 507 MILLION 134 MILLION OF WHICH IS RELATED TO EXPORTS HYUNDAI MOTOR'S MANAGEMENT OFFERED WEDNESDAY TO RAISE WORKERS' MONTHLY PAY 473 ALTHOUGH THAT IS WELL BELOW THE UNION'S DEMAND FOR 165 WORKERS ARE LIKELY TO ACCEPT THE OFFER ANALYSTS SAY ECONOMIC RECOVERY IS CONSIDERED VITAL TO MAINTAIN PUBLIC ENTHUSIASM FOR MR KIM'S ANTICORRUPTION CRUSADE WHICH HAS SHAKEN UP KOREA'S ENTRENCHED POLITICAL INSTITUTIONS ACCOMPANYING HIS PROGRAM WHICH INCLUDES WAGE AND PRICE CONTROLS TO CURB INFLATION THE PRESIDENT HAS SOUNDED A THEME OF GROUP SACRIFICE THAT ANALYSTS SAY ERODED SYMPATHY FOR UNION DEMANDS 9307220077 930722 BUSINESS BRIEF CONRAIL CORP SECONDPERIOD NET ROSE 10 DIVIDEND INCREASE APPROVED CONRAIL CORP POSTED A 10 RISE IN NET INCOME FOR THE SECOND QUARTER CITING A 4 INCREASE IN FREIGHT TRAFFIC VOLUME AND APPROVED AN 18 INCREASE IN THE QUARTERLY DIVIDEND DESPITE THE POSITIVE RESULTS THE RAILFREIGHT TRANSPORTATION COMPANY IN PHILADELPHIA REVISED ITS FIVEYEAR REVENUE GROWTH PROJECTIONS DOWNWARD TO 600 MILLION FROM 1 BILLION A CONRAIL SPOKESWOMAN SAID THE REVISION WAS DUE MAINLY TO A DECLINE IN COAL REVENUE WHICH FELL 11 IN THE QUARTER FROM A YEAR EARLIER CONRAIL HAD NET INCOME OF 85 MILLION OR 101 A SHARE IN THE QUARTER UP FROM 77 MILLION OR 90 CENTS A SHARE REVENUE ROSE 36 TO 873 MILLION FROM 843 MILLION VOLUME ROSE IN ALL MAJOR GROUPS EXCEPT COAL WHICH FELL 9 FROM LAST YEAR DIRECTORS APPROVED A FIVE CENT INCREASE IN THE QUARTERLY DIVIDEND TO 325 CENTS A SHARE PAYABLE SEPT 15 TO SHAREHOLDERS OF RECORD AUG 31 DIRECTORS ALSO AUTHORIZED A 100 MILLION COMMON STOCK REPURCHASE PLAN 9307220076 930722 BUSINESS BRIEF PACIFIC GAS & ELECTRIC CO UTILITY POSTS DECLINE IN NET OF 27 FOR SECOND QUARTER THE SAN FRANCISCOBASED UTILITY SAID ITS PROFIT DECLINED TO 2454 MILLION OR 53 CENTS A SHARE FROM 3364 MILLION OR 75 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FELL 2 TO 246 BILLION FROM 252 BILLION THE SAN FRANCISCOBASED UTILITY SAID THE RESULTS INCLUDED A CHARGE OF 141 MILLION OR 19 CENTS A SHARE FOR COSTS RELATED TO A VOLUNTARY RETIREMENT PROGRAM THE CHARGE WAS WIDER THAN THE 103 MILLION OR 14 CENTS A SHARE IT EARLIER SAID IT PLANNED TO TAKE THE COMPANY SAID IT INCREASED THE AMOUNT OF THE CHARGE BECAUSE MORE EMPLOYEES ACCEPTED THE VOLUNTARY RETIREMENT OPTION THAN IT HAD ANTICIPATED PG&E SAID EARNINGS WERE ALSO HELD DOWN BECAUSE ONE OF TWO UNITS AT ITS DIABLO CANYON NUCLEAR POWER PLANT WAS SHUT DOWN FOR A SCHEDULED REFUELING AND MAINTENANCE DURING PART OF THE QUARTER PG&E FELL 125 CENTS TO 34125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9307220075 930722 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE WHITE HOUSE PUSHES FOR A HIGHER TAX ON FUELS THAN SENATE HAS SUPPORTED BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CLINTON ADMINISTRATION OFFICIALS ARE TESTING WHETHER CONGRESS CAN SUPPORT A FUELSTAX INCREASE A PENNY OR TWO HIGHER THAN THE SENATE'S 43 CENTS A GALLON BUT SENIOR SENATORS INVOLVED IN WRITING A DEFICITREDUCTION COMPROMISE ARE BALKING WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID AFTER A MEETING WITH DEMOCRATS IN THE HOUSE YESTERDAY THAT THE ADMINISTRATION EXPECTED THE HOUSESENATE NEGOTIATIONS TO PRODUCE A DEFICIT PLAN WITH AN ENERGY TAX RAISING 22 BILLION TO 30 BILLION OVER FIVE YEARS THAT HAS TO BE A PART OF IT SAID TREASURY SECRETARY LLOYD BENTSEN WHO WAS PART OF THAT BRIEFING THE FUELS TAX IN THE SENATE VERSION OF PRESIDENT CLINTON'S ECONOMIC PROGRAM WOULD RAISE 22 BILLION OVER FIVE YEARS WHEN THE SENATE'S LEAD NEGOTIATOR FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY PROPOSED TO PICK UP ADDITIONAL REVENUES BY PHASING IN AN INCREASE OF UP TO 68 CENTS A GALLON HE MET RESISTANCE FROM SEVERAL DEMOCRATIC SENATORS THE OPPONENTS INCLUDED SENS DAVID PRYOR OF ARKANSAS AND MAX BAUCUS OF MONTANA WHO HAVE BEEN PROMOTING THE IDEA OF DROPPING ANY FORM OF ENERGY TAX AND DONALD RIEGLE OF MICHIGAN WHO FACES A REELECTION FIGHT NEXT YEAR DURING CLOSEDDOOR TALKS WHICH WERE AIMED AT DEVISING A NEGOTIATING OFFER TO MAKE TO THE HOUSE SIDE SOME SENATORS ALSO SAID CONGRESS SHOULDN'T FEEL HANDCUFFED BY THE PRESIDENT'S CALL FOR 500 BILLION IN TOTAL DEFICIT REDUCTION OVER FIVE YEARS BECAUSE THE LAWMAKERS COULD AVOID SOME CONTROVERSIES ABOUT THE BILL'S SPECIFICS IF THEY LET THE TOTAL SLIP SLIGHTLY THE ADMINISTRATION WANTS TO HIT THAT TARGET SO THE FINAL BILL EXCEEDS THE 482 BILLION IN FIVEYEAR SAVINGS ATTRIBUTED TO THE 1990 BUDGET AGREEMENT WHICH PRESIDENT BUSH SIGNED AND WOULD THEREFORE QUALIFY AS THE LARGEST DEFICITREDUCTION MEASURE EVER ALSO YESTERDAY MR PANETTA SAID THE ADMINISTRATION AND DEMOCRATS WERE CONSIDERING CHANGES IN THE PROPOSED INCOMETAX INCREASES FOR UPPERINCOME INDIVIDUALS THE CHANGES WOULD APPLY ONLY TO 1993 AND WOULD RAISE MORE REVENUE THAN THE SENATE BILL THOUGH LESS THAN THE HOUSE THE HOUSE BILL AND MR CLINTON PROPOSED RAISING THE TOP MARGINAL RATES TO 36 AND 396 FROM THE CURRENT 31 EFFECTIVE FOR THIS ENTIRE YEAR THE SENATE BILL WOULD CUT THE PROPOSED INCREASE IN HALF JUST FOR THIS YEAR THE NEGOTIATORS ARE SEEKING A MIDDLE GROUND A DEMOCRATIC NEGOTIATOR FOR SOME OF THE BILL'S NONTAX PORTIONS REP MIKE SYNAR OF OKLAHOMA SAID CHANGES BEING CONSIDERED FOR A PLAN TO AUCTION PART OF THE COMMUNICATIONS AIRWAVES COULD RAISE 5 BILLION TO 10 BILLION MORE THAN THE 72 BILLION NOW ESTIMATED OVER FIVE YEARS THE ADMINISTRATION AND DEMOCRATIC CONGRESSIONAL LEADERS WANT THE BUDGET CONFERENCE TO REACH A FULL COMPROMISE BY LATE NEXT WEEK LEAVING ANOTHER WEEK TO PASS THE AGREEMENT BEFORE CONGRESS DEPARTS IN EARLY AUGUST FOR ITS SUMMER RECESS REPUBLICANS HAVE UNANIMOUSLY OPPOSED THE DEFICITREDUCTION BILLS AND AREN'T PART OF THE COMPROMISE TALKS THE ADMINISTRATION AND DEMOCRATIC LEADERS CONTINUED TO PREDICT AN ENERGY TAX WILL BE PART OF THE FINAL PACKAGE AND THEY GET SUPPORT AMONG LIBERALS AND CONSERVATIVES IN THE RANKANDFILE WHO SAY THE POTENTIAL REVENUES ARE ESSENTIAL IF THE BILL IS TO INCLUDE COSTLY TAX AND SPENDING INITIATIVES FOR SMALL BUSINESSES AND THE POOR WHILE STILL HITTING THE TOTAL DEFICITREDUCTION GOAL BUT A POTENT GROUP OF LAWMAKERS IS CALLING FOR A MEASURE THAT DROPS ANY ENERGY OR FUELS TAX THE OPPONENTS ARE A MIX OF WESTERNERS SUCH AS SEN BAUCUS AND TEXAS REP CHARLES STENHOLM WHO REPRESENT STATES WHERE RESIDENTS DRIVE LONG DISTANCES AND OPPOSE HIGHER GASOLINE TAXES AND OTHER DEMOCRATS SUCH AS SEN PRYOR AND WISCONSIN REP DAVID OBEY WHO SIMPLY BELIEVE THE ENERGY TAX IS MORE POLITICAL TROUBLE THAN IT'S WORTH WITHOUT IT THEY SAY DEMOCRATS COULD ARGUE THAT THE BILL DOESN'T HIT THE WORKING MIDDLE CLASS AT ALL THE GROUP DIFFERS HOWEVER ON WHETHER TO MAKE UP THE REVENUES THROUGH HIGHER TAXES ON THE WEALTHY AND CORPORATIONS AS SEN BAUCUS AND MR OBEY HAVE SUGGESTED OR WITH SPENDING CUTS AS REP STENHOLM INSISTS ON A SEPARATE MATTER YESTERDAY SEN MOYNIHAN CHASTISED THE ADMINISTRATION FOR NOT YET NAMING A SOCIAL SECURITY COMMISSIONER IT'S DISGRACEFUL IT INDICATES A LACK OF CONCERN SOCIAL SECURITY DOES NOT MATTER VERY MUCH TO THIS ADMINISTRATION HE SAID THE FINANCE COMMITTEE CHAIRMAN SPOKE DURING A HEARING ABOUT HIS PROPOSAL TO RAISE THE AMOUNT THAT INDIVIDUALS CAN PAY A DOMESTIC HELPER WITHOUT HAVING TO PAY SOCIAL SECURITY TAXES TO 610 A YEAR FROM THE CURRENT 50 A QUARTER THE PROPOSAL GROWS OUT OF THE CONTROVERSY OVER ZOE BAIRD MR CLINTON'S FAILED NOMINEE FOR ATTORNEY GENERAL THE HOUSE PASSED A PROVISION RAISING THE THRESHHOLD TO 1800 A YEAR AS PART OF ITS DEFICITREDUCTION BILL BUT SEN MOYNIHAN SAID THE CHANGE CAN'T BE PART OF THE FINAL BUDGET BILL BECAUSE UNDER SENATE PARLIAMENTARY RULES ITS INCLUSION COULD JEOPARDIZE THE ENTIRE BILL HE SAID HE HOPED A BILL COULD BE PASSED SEPARATELY THIS FALL BUT THE HOUSE MUST ORIGINATE ALL TAXRELATED BILLS 9307220074 930722 TWO ARE INDICTED FOR A WILD SPREE IN CBOT TRADING BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO TWO MEN WERE INDICTED ON WIREFRAUD CHARGES FOR A WILD TRADING SPREE AT THE CHICAGO BOARD OF TRADE LAST YEAR THAT SHOOK UP THE NATIONAL MARKET IN US TREASURY BONDS THIS TYPE OF BEHAVIOR CAN HAVE NO PLACE IN THE WORLD'S MAJOR FINANCIAL MARKETS SAID US ATTORNEY MICHAEL J SHEPARD THIS OFFICE WILL CONTINUE TO USE THE POWER OF CRIMINAL PROSECUTION TO PROTECT THE INTEGRITY OF THE MARKETS FROM THOSE WHO WOULD EXPLOIT THE TRADING PITS FOR FRAUDULENT PURPOSES THE TWO IF CONVICTED EACH FACE MAXIMUM PRISON TERMS OF 30 YEARS AND FINES OF AS MUCH AS 16 MILLION A SUM EQUAL TO TWICE THE LOSS CREATED BY THEIR UNAUTHORIZED TRADES DARRELL ZIMMERMAN 30 YEARS OLD OF CHICAGO AND ANTHONY CATALFO 29 OF BAYSIDE NY WERE EACH CHARGED WITH SIX COUNTS OF WIRE FRAUD BY A FEDERAL GRAND JURY IN CHICAGO LAST OCTOBER THE INDICTMENT CHARGES THE TWO OPENED TRADING ACCOUNTS WITH CLEARING FIRMS AT THE CBOT AND DELIBERATELY DECEIVED THEIR CLEARING FIRMS INTO BELIEVING THEY WOULD LIMIT THEIR TRADING IN ACCORD WITH THEIR PERSONAL FINANCIAL STATUS MESSRS ZIMMERMAN AND CATALFO THE INDICTMENT ALLEGES THEN UNLEASHED UNAUTHORIZED BOND FUTURES AND OPTIONS TRADES WITH A FACE VALUE THAT EXCEEDED 1 BILLION WITH THE INTENT OF MANIPULATING THE TREASURYBOND MARKET THEY APPARENTLY HOPED TO EARN A PROFIT IN BOND OPTIONS THROUGH MARKETMOVING TRADES IN BOND FUTURES THE UNAUTHORIZED TRADES BY THE TWO UNDERCAPITALIZED TRADERS TEMPORARILY MOVED BOND PRICES THROUGHOUT THE NATION AND PRODUCED A LOSS OF 8 MILLION FOR MR ZIMMERMAN'S CLEARING FIRM LEE B STERN & CO BROKERS ON THE CBOT FLOOR ALERTED EXCHANGE COMPLIANCE OFFICERS WHO LEARNED FROM THE STERN FIRM THAT THE TRADERS WEREN'T AUTHORIZED TO EXECUTE THE HUGE TRADES AND REMOVED THE TWO MEN FROM THE FLOOR THE EPISODE REALIZED THE WORST NIGHTMARE OF THE FIRMS THAT CLEAR TRADES FOR INDEPENDENT LOCAL TRADERS AT CHICAGO'S TWO BIG FUTURES MARKETS BY CLEARING THESE TRADES THE FIRMS AGREE TO GUARANTEE PAYMENT OF ANY TRADING LOSSES THE TRADES PRODUCE BECAUSE OF MESSRS ZIMMERMAN AND CATALFO'S TRADES THE STERN FIRM WAS FORCED TO TEMPORARILY HALT OPERATIONS AFTER IT FAILED TO MEET AN 8MILLION MARGIN CALL FROM THE CBOT'S CLEARING UNIT THE OWNER OF THE FIRM CHICAGO ENTREPRENEUR LEE B STERN LATER PUT HIS FIRM BACK IN BUSINESS BY PAYING THE DEBT WITH HIS OWN FUNDS FEDERAL INVESTIGATORS BEGAN LOOKING INTO MESSRS ZIMMERMAN AND CATALFO'S TRADES AFTER BEING CONTACTED BY THE CBOT WE IMMEDIATELY REQUESTED THE ASSISTANCE OF THE US ATTORNEY AND WE ARE PLEASED THAT THEY AND THE FBI HAVE INVESTIGATED THIS MATTER THOROUGHLY PATRICK ARBOR CBOT CHAIRMAN SAID YESTERDAY RICK HALPERIN AN ATTORNEY FOR MR CATALFO SAID HE WILL SEEK TO PROVE ON BEHALF OF HIS CLIENT THAT THE TRADES DIDN'T CONSTITUTE WIREFRAUD OFFENSES EVEN IF HE VIOLATED EXCHANGE RULES IT DOESN'T MEAN HE VIOLATED ANY LAWS MR HALPERIN ASSERTED WE'RE GOING TO EXAMINE THE RULES VERY CAREFULLY WE'RE GOING TO TAKE A LONG HARD LOOK AT WHAT ACTUALLY HAPPENED AND THE ENVIRONMENT IN WHICH IT HAPPENED DANIEL MARTIN ATTORNEY FOR MR ZIMMERMAN SAID HIS CLIENT WOULD FIGHT THE CHARGES ON SIMILAR GROUNDS DARRELL ZIMMERMAN DENIES THAT THE CONDUCT ALLEGED IN THE INDICTMENT WAS FRAUDULENT IN ANY WAY MR MARTIN SAID ADDING THAT HIS CLIENT WOULD ENTER A PLEA OF NOT GUILTY TO ALL CHARGES 9307220073 930722 INTERNATIONAL BRIEF DAIMLERBENZ AG GERMAN CONCERN WILL CUT MORE HEADQUARTERS WORKERS DAIMLERBENZ AG WILL CUT AN ADDITIONAL 100 TO 200 EMPLOYEES FROM ITS STUTTGART GERMANY HEADQUARTERS IN THE NEXT TWO YEARS IN ADDITION TO THE 350 IT ALREADY HAS RESOLVED TO CUT JOBS WILL BE ELIMINATED EXCLUSIVELY THROUGH ATTRITION THE GERMAN INDUSTRIAL CONCERN SAID THE LATEST CUTS APPLY ONLY TO THE WORK FORCE AT THE GROUP'S HOLDING COMPANY WHICH MANAGES THE FOUR OPERATING DIVISIONS MOTOR GROUP MERCEDESBENZ AG DEUTSCHE AEROSPACE AG THE AEG AG ELECTRONICS GROUP AND THE DAIMLERBENZ INTERSERVICES DEBIS FINANCIAL SERVICES DIVISION 9307220072 930722 BEYOND WASHINGTON MIDDLE AMERICA IN CLINTON'S FIRST YEAR POLITICS & POLICY ILLINOIS TOWN'S CONCERN ABOUT DEFICIT PROGRAM GOES BEYOND ITS PASSAGE TO LONGTERM RESULTS BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW LENOX ILL THIS LEAFY SUBURB HOME OF PROUD AMERICANS ACCORDING TO THE PLAQUE IN THE VILLAGE HALL IS WATCHING WASHINGTON HAGGLE THE CLINTON DEFICITREDUCTION PROGRAM INTO ITS FINAL FORM BUT THE STAKES AS NEW LENOX SEES THEM ARE EVEN HIGHER THAN THE STAKES AS WASHINGTON SEES THEM WASHINGTON IS PREOCCUPIED WITH WHETHER PRESIDENT CLINTON'S PLAN WILL PASS BUT NEW LENOX IS PREOCCUPIED WITH WHETHER IT WILL WORK IT'S A BIGGER QUESTION ENTIRELY AND RIGHT NOW RESIDENTS HERE DON'T FEEL GOOD ABOUT THE ANSWER CLEARLY THE REPUBLICANS HAVE WON THE PERCEPTION BATTLE HERE SUCCESSFULLY PORTRAYING THE CLINTON DEFICITCUTTING PACKAGE AS A TAXANDSPEND MEASURE ROBERT STAN A 43YEAROLD LAWYER SPEAKS FOR MANY WHEN HE DECLARES YOU DON'T STIMULATE THE ECONOMY BY TAXING PRODUCTIVE PEOPLE WHEN PEOPLE FIND OUT HOW THIS AFFECTS THEM CLINTON WILL BE A ONETERM PRESIDENT YET THERE'S ALSO A SENSE THAT SOME OF THESE PEOPLE AREN'T IRREVOCABLY LOST TO PRESIDENT CLINTON RATHER THEY ARE SO CYNICAL ABOUT AND TURNED OFF BY THE POLITICAL PROCESS THAT ONLY RESULTS WILL MOVE THEM PERSONALLY I'VE LOST SO MUCH FAITH IN GOVERNMENT SAYS LOUIE KOCSIS A 26YEAROLD MECHANICAL ENGINEER IF IT THE CLINTON PLAN IS GOING TO REDUCE THE DEFICIT I WANT IT TO PASS BUT I'LL BELIEVE THAT WHEN I SEE IT NEW LENOX A COMMUNITY OF 9700 THAT LIES 30 MILES SOUTHWEST OF CHICAGO'S LOOP AND SURROUNDING WILL COUNTY ARE PREDOMINANTLY SUBURBAN AND REPUBLICAN BUT THEY ARE GOOD PLACES TO GAUGE PUBLIC REACTION TO THE WASHINGTON POLICY STRUGGLE NOW NEARING ITS CONGRESSIONAL CLIMAX THE TOWN IS REPRESENTED IN CONGRESS BY A DEMOCRAT GEORGE SANGMEISTER THE COUNTY WHICH ALSO INCLUDES JOLIET A STRUGGLING BLUECOLLAR CITY BEST KNOWN FOR ITS PRISONS GAVE PRESIDENT BUSH 59 OF ITS VOTE IN 1988 BUT IN 1992 MR BUSH PLUMMETED TO 38 ROSS PEROT TOOK 22 AND MR CLINTON CARRIED THE COUNTY BY 1300 VOTES IT WAS A CHANGE SO ABRUPT AND SO DECISIVE AS TO SIGNAL PROFOUND UNEASINESS ABOUT THE NATION'S COURSE NOW WILL COUNTY APPEARS TO BE SOURING ON PRESIDENT CLINTON TOO EARLY ON THERE WAS THIS HOPE THAT MAYBE CLINTON COULD LEAD THAT'S NOT THERE ANY MORE CONCLUDES DEMOCRATIC POLLSTER MICHAEL MCKEON WHO WORKS OUT OF JOLIET DONNA BAUMRUK SPEAKS FOR MOST REPUBLICANS HERE WHEN SHE DECLARES THAT THE CLINTON PLAN WOULD TAX US TO DEATH GROWING MORE ANIMATED BY THE MOMENT THE 45YEAROLD BUSINESSWOMAN ADDS I DON'T THINK HE KNOWS WHAT HE'S DOING TO VOICE MY OPINION ABOUT THAT MAN IT JUST MAKES MY DAY YET YOU ALSO FIND IN NEW LENOX A TOWN IN DEBATE WITH ITSELF NEW LENOX IS PROSPEROUS WITH A MEDIAN HOME VALUE OF 109700 BUT IT IS TORN BETWEEN ITS FEARS THAT THE CLINTON PLAN WILL TRIGGER A RECESSION AND AN UNEASY PERVASIVE SENSE THAT THE NATION HAS BEEN LIVING ON BORROWED MONEY AND BORROWED TIME CHERYL MISON 39 A LIFELONG REPUBLICAN WHO VOTED FOR MR CLINTON ARGUES EARNESTLY THAT THE NATION IS AT BEST DRIFTING SIDEWAYS CLINTON IS TRYING HIS DAMNEDEST BUT IT SEEMS LIKE HE'S HITTING A WALL SHE WORRIES GIVE THE MAN A CHANCE IT'S TIME TO TAKE OFF THE PARTY LABELS AND LOOK AT THE COUNTRY THE COUNTY REMAINS UNSETTLED STILL SEARCHING IT SEEMS FOR AN OPTION THAT GOES BEYOND THE OLD REPUBLICANORDEMOCRAT CHOICE VOTERS CONCLUDES MR MCKEON ARE STILL LOOKING FOR A NEW SOMETHING SOMETIMES THESE CROSSCURRENTS COME TOGETHER IN A SINGLE INDIVIDUAL FLOYD GORDON 60 LEANS ON HIS PICKUP TRUCK AT THE SHOPPING MALL HERE AND DELIVERS A ONESENTENCE JUDGMENT I'VE JUST GOT NO USE FOR CLINTON BUT THEN HE VOLUNTEERS LET'S FACE IT WE'RE IN BAD SHAPE VERY BAD SHAPE SOMEBODY BETTER WAKE UP AMERICA'S IN TROUBLE THE SKEPTICISM ABOUT MR CLINTON NOT TO MENTION THE OUTRIGHT HOSTILITY OF MOST REPUBLICANS HERE UNDERSCORES A BOTCHED OPPORTUNITY FOR THE PRESIDENT HE HASN'T CONVINCED VOTERS THAT HE'S A TRUE BUDGETCUTTER OR THE NEW DEMOCRAT HE CLAIMS TO BE NUANCES BECOME IRRELEVANT BUT VOTERS LIKE MR KOCSIS UNDERSCORE SOMETHING ELSE AS WELL IN JUDGING MR CLINTON AND HIS PLAN BEYONDTHEBELTWAY AMERICA IS OPERATING ON A LONGER TIMETABLE AND WITH FAR LESS IMMEDIATE INFORMATION THAN IS POLITICAL WASHINGTON IN INFORMATIONRICH WASHINGTON HOUSE AND SENATE NEGOTIATORS ARE NOW PLAYING THE POLITICAL EQUIVALENT OF THREEDIMENSIONAL CHESS ALMOST BY THE HOUR THEY WEIGH MEDICARE CUTS AGAINST CORPORATE TAX INCREASES TAX CREDITS FOR THE POOR AGAINST TAX INCREASES FOR THE RICH THE CITY'S POLITICAL SYSTEM VIBRATES WITH EVERY CHANGING NUANCE OUT HERE THOUGH THE NUANCES RARELY GET THROUGH WASHINGTON'S STRUGGLE IS REDUCED TO SHADOWS ON A WALL THE DEFICITIT'S INCOMPREHENSIBLE SIGHS LISA WHEELER A 33YEAROLD SPECIALIST IN EARLY CHILDHOOD EDUCATION FOR HER AS FOR ALMOST EVERYONE ELSE THE ISSUE GETS BOILED DOWN TO SOME MORE PRIMITIVE GUTLEVEL QUESTION THE BAD NEWS FOR THE PRESIDENT IS THAT FOR MANY VOTERS HIS BUDGET PLAN GETS TARRED BY THE NEGATIVE IMPRESSION HE HAS CREATED BY HIS FUMBLING APPROACH TO OTHER ISSUES IF HE'S AN EIGHTBALL ON ONE THING HE'S PROBABLY AN EIGHTBALL ON MOST THINGS CONCLUDES MR GORDON THE MORE HOPEFUL NEWS IS THAT PEOPLE HERE STILL VOTE MORE ON LONGRUN RESULTS THAN SHORTTERM IMPRESSIONS IF THE CLINTON PLAN PASSES ONLY TO IGNITE A RECESSION THEN NOTHING CAN SAVE HIM HERE BUT IF IT ACTUALLY WORKS IN DEMONSTRABLE WAYS NEW LENOX WILL BE REACTING TO THAT FACT LONG AFTER OFFICAL WASHINGTON HAS TURNED TO OTHER THINGS SOMETHING HAS GOT TO CHANGE INSISTS MS WHEELER A CLINTON SUPPORTER WE'VE GOT TO START SOMEWHERE THE QUESTION IS WHETHER WE'RE GOING TO LET CLINTON TRY SOMETHING NEW 9307220071 930722 BUSINESS BRIEF SATELLITE TECHNOLOGY MANAGEMENT US ADVISORY IS SAID TO CLEAR EXPORT OF SATELLITE SYSTEM SATELLITE TECHNOLOGY MANAGEMENT INC COSTA MESA CALIF SAID IT RECEIVED AN ADVISORY FROM THE COMMERCE DEPARTMENT'S BUREAU OF EXPORT ADMINISTRATION THAT CLEARS THAT WAY FOR EXPORT OF A SATELLITE COMMUNICATIONS SYSTEM THE COMPANY SAID THE ADVISORY RENDERS A COMMERCE DEPARTMENT INVESTIGATION INSUPPORTABLE AND UNWARRANTED IN MAY SATELLITE TECHNOLOGY SAID FEDERAL OFFICIALS WERE INVESTIGATING A SHIPMENT BY THE COMPANY TO IRAN HOWEVER AN OFFICIAL AT THE COMMERCE DEPARTMENT'S OFFICE OF EXPORT ENFORCEMENT DISPUTED THE COMPANY'S INTERPRETATION SAYING THAT THE PROBE IS CONTINUING THE INVESTIGATION CONCERNS ALLEGATIONS BY FEDERAL OFFICIALS THAT THE MAKER OF SATELLITE COMUNICATIONS SYSTEMS ILLEGALLY ATTEMPTED TO SHIP A 14 MILLION SYSTEM AND RELATED COMPUTER TO IRAN 9307220070 930722 TECHNOLOGY BRIEF MOTOROLA INC OFFICIALS PREDICT BIG GROWTH IN CELLULAR PHONE MARKET MOTOROLA INC OFFICIALS PREDICTED EXPLOSIVE GROWTH IN THE COMPANY'S CELLULAR PHONE AND WIRELESS COMMUNICATIONS MARKETS AT AN ANALYSTS' MEETING IN CHICAGO GARY TOOKER PRESIDENT AND CHIEF OPERATING OFFICER SAID FOREIGN MARKETS ARE EXPECTED TO GROW SO RAPIDLY PARTICULARLY IN CHINA EASTERN EUROPE AND RUSSIA THAT 75 OF THE COMPANY'S TOTAL SALES WILL BE OVERSEAS BY THE YEAR 2000 COMPARED WITH 52 IN 1992 9307220069 930722 CREDIT CARDS OFFICE SUPPLIES ARE BATTLEFIELD FOR CREDIT CARDS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL BUYING OFFICE SUPPLIES IS ONE OF THE MORE MUNDANE TASKS OF CORPORATE LIFE BUT TO THE HOTLY COMPETITIVE CREDITCARD INDUSTRY THE 300 BILLION MARKET MAY BE THE NEXT BIG BATTLEGROUND IN THE COMING MONTHS AMERICAN EXPRESS CO VISA USA AND MASTERCARD INTERNATIONAL PLAN TO ROLL OUT PURCHASING OR PROCUREMENT CARDS THAT ARE EXPLICITLY DESIGNED FOR CORPORATE CLIENTS TO CHARGE SMALL PURCHASES OF 1000 OR LESS UNTIL NOW COMPANIES HAVE PURCHASED OFFICE SUPPLIES AND OTHER SMALL ITEMS THROUGH AN ANTIQUATED CUMBERSOME PAPER SYSTEM THIS IS A BIG MARKET THAT IS AT ITS FORMATIVE STAGES SAID ROGER BALLOU PRESIDENT OF AMERICAN EXPRESS'S TRAVEL SERVICES GROUP WHICH HANDLES CORPORATE ACCOUNTS WHILE CURRENT CORPORATE CARDS CAN BE USED TO BUY OFFICE SUPPLIES FEW COMPANIES USE THEM FOR THAT PURPOSE FOR ONE THING THE CARD COMPANIES HAVEN'T PROMOTED SUCH PURCHASES BECAUSE THEY HAVE HAD NO NETWORK OF BUSINESSSUPPLIES MERCHANTS WILLING TO ACCEPT THE CARDS VISA AND MASTERCARD ESPECIALLY HAVEN'T BEEN PUSHING SUCH PURCHASES BECAUSE CORPORATIONS ARE LESS LIKELY THAN CONSUMERS TO KEEP A TAB RUNNING MONTH TO MONTH THAT WILL BUILD UP INTEREST CHARGES BUT WITH PROFIT MARGINS SLIPPING IN THE CONSUMER CARD MARKET AND CORPORATIONS LOOKING FOR MORE EFFICIENT WAYS TO PAY BILLS CARD ISSUERS BELIEVE THEY HAVE SPOTTED AN OPPORTUNITY THE POTENTIAL MARKET IS HUGE ISSUERS ESTIMATE THE CORPORATE MARKET FOR SMALLER PURCHASES AT 300 BILLION ANNUALLY COMPARED WITH AN ESTIMATED 110 BILLION FOR CORPORATE TRAVEL AND ENTERTAINMENT AS A RESULT CARD COMPANIES ARE NOW INVESTING IN NEW MANAGEMENTINFORMATION SYSTEMS THAT ENABLE THEM TO AMONG OTHER THINGS ATTRACT MERCHANTS BY PROMISING SPEEDY PAYMENT OF BILLS RIGHT NOW A TYPICAL PURCHASE BY A CORPORATION TAKES DAYS BECAUSE IT HAS TO GO THROUGH ITS PROCUREMENT OR REQUISITIONS DEPARTMENT THEN TO ACCOUNTS PAYABLE TO PRODUCE AND SEND A CHECK UNDER THE NEW SYSTEM AN EMPLOYEE CALLS IN A PURCHASE TO A VENDOR WHO SENDS THE PRODUCT IMMEDIATELY AND IS PAID WITHIN A FEW DAYS BY THE CARD ISSUER THE BUYER IN TURN RECEIVES ONE BILL FOR THE ENTIRE MONTH FOR ALL PURCHASES THAT GETS RID OF AN ENTIRE CHAIN OF PAPERWORK SAVING COMPANIES THE TIME AND MONEY IT TAKES TO MAKE SMALL PURCHASES LARGE COMPANIES SAY THE INTERNAL COST OF A SMALL PURCHASE TO WEAVE ITS WAY THROUGH A CORPORATE BUREAUCRACY CAN BE CLOSE TO 100 YOU PAY ONE INVOICE INSTEAD OF 2200 SAID VIRGINIA LEGG CORPORATE PURCHASING MANAGER AT SANTA CLARA CALIFBASED INTEL CORP WE'VE REDUCED THE CYCLE FROM DAYS TO MINUTES ASIDE FROM INTEL COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP MOBIL CORP SCOTT PAPER CO AND OTHERS ARE USING THE NEW PRODUCT AND EVENTUALLY CARD ISSUERS HOPE TO BLANKET THE BUSINESS COMMUNITY IN ADDITION THE FEDERAL GOVERNMENT AND SOME STATES ARE USING A PROCUREMENT CARD ALL IT'S DOING IS BRINGING INTO THE 20TH CENTURY THE PAYMENT SYSTEM OF MISCELLANEOUS BILLS SAID PHILIP HEASLEY EXECUTIVE VICE PRESIDENT AT FIRST BANK SYSTEM INC ONE OF THE FEW BANKS THAT ALREADY HAS A PROCUREMENT CARD UP AND RUNNING STILL THERE ARE MANY HURDLES BEFORE ACCEPTANCE IS WIDESPREAD NOT ALL BUSINESSSUPPLIES FIRMS ARE ACCEPTING CARDS YET CHANGING HIDEBOUND WAYS IN MAJOR CORPORATIONS CAN BE DIFFICULT EXECUTIVES SAY SOME PEOPLE WANT A PHYSICAL HARD COPY OF A BILL AND NEED A PAPER TRAIL AND CARD ISSUERS DO NOT HAVE A WAY TO TRACK SALES TAX PAID A CRUCIAL FIGURE FOR ACCOUNTING PURPOSES PROCUREMENT CARDS ARE A NEW FRONT FOR THE CARD COMPANIES WHICH ALREADY ARE FIGHTING FOR THEIR SHARE OF THE CORPORATE TRAVEL AND ENTERTAINMENT MARKET AMERICAN EXPRESS HAS A DOMINANT 64 SHARE OF THAT MARKET ACCORDING TO THE NILSON REPORT COMPARED WITH 14 FOR VISA AND 11 FOR MASTERCARD TO EARN SUFFICIENT RETURNS FOR MEMBER BANKS VISA IS ADDING A NEW FIXED FEE LEVIED ON MERCHANTS A FEW CENTS FOR EVERY PURCHASE PROCESSED OVER AND ABOVE THE SOCALLED DISCOUNT RATE OF 2 TO 25 OF SALES THAT MERCHANTS ARE CHARGED TO ACCEPT CREDIT CARDS AT THE SAME TIME AMERICAN EXPRESS WHICH HAS TRADITIONALLY KEPT ITS RATES HIGHER APPEARS TO BE LOWERING ITS RATES CHARGED TO MERCHANTS WHEN ASKED ABOUT REPORTS OF REDUCED RATE OFFERS MR BALLOU OF AMERICAN EXPRESS WOULD ONLY SAY WE KNOW WE HAVE TO BE COMPETITIVE AND WE WILL BE A SPOKESMAN FOR MASTERCARD SAID IT WOULD MATCH VISA'S RATES BOTH OF US ARE DOING IT TO COMPETE AGAINST THE AMEX PRODUCT HE SAYS OFFICE SUPPLY VENDORS ARE EXPECTED TO GIVE SERIOUS CONSIDERATION TO ACCEPTING THE CARDS BECAUSE THE NEW SYSTEM SIGNIFICANTLY SHORTENS THE TIME BETWEEN BILLING AND PAYMENT IT ALSO REDUCES THE CREDIT RISK IN THE MARKET FOR SUPPLIERS SINCE CARD ISSUERS ARE ESSENTIALLY TAKING THE RISK THAT A COMPANY WON'T PAY ITS BILLS BUT WHILE SUPPLIERS WILL BE PAID QUICKER HAVING TO PAY THE DISCOUNT RATE TO CARD ISSUERS COULD EAT INTO PROFITS UNLESS THEY CAN MAKE IT UP WITH VOLUME OR PASS ALONG THE COST TO CLIENTS THE TRADEOFF BETWEEN ACCEPTING THE CARD AND PAYING THE DISCOUNT IS ONE MANY SUPPLIERS ARE NOW GRAPPLING WITH THE BIGGEST BENEFIT IS GETTING PAID WITHIN THREE DAYS RATHER THAN 30 TO 45 DAYS SAID ANDREW PEDLOW CHIEF FINANCIAL OFFICER OF COLONIAL ELECTRIC SUPPLY CO BASED IN KING OF PRUSSIA PA COLONIAL DIDN'T ACCEPT THE AMERICAN EXPRESS CARD UNTIL SCOTT PAPER REQUESTED THAT THE ELECTRIC SUPPLY COMPANY DO SO MR PEDLOW HAS FOUND THAT IT ALSO SAVES PROCESSING TIME FOR COLONIAL BECAUSE A BILL DOESN'T HAVE TO BE DOCUMENTED AND SENT OUT UNDER THE NEW SYSTEM COLONIAL IS GIVING UP 25 TO 29 OF ITS REVENUE TO AMERICAN EXPRESS THROUGH THE DISCOUNT RATE MR PEDLOW HOPES TO MAKE UP THE SHORTFALL WITH INCREASED VOLUME FROM OTHER CLIENTS AMERICAN EXPRESS HAS PLEDGED TO HELP VENDORS SUCH AS COLONIAL WITH MARKETING TO BRING IN NEW BUSINESS WHAT WE DO NEED OF COURSE IS VOLUME SAYS MR PEDLOW WE WERE A GUINEA PIG BUT WE WELCOMED IT CARD ISSUERS SAY ONE REASON THEY'RE PUSHING THE PRODUCT IS DEMAND FROM CLIENTS IBM HELPED AMERICAN EXPRESS DEVELOP ITS PURCHASING CARD THAT ELIMINATES PAPER COMPLETELY EVEN THE MONTHLY BILL IS SENT ELECTRONICALLY AND IBM PAYS THROUGH AN ELECTRONIC WIRE TRANSFER WILLIS BAKER A MANAGER ON THE CONTROLLER STAFF AT IBM WHO IS HELPING THE COMPANY IMPLEMENT THE NEW SYSTEM SAID USING THE CARD HAS TAKEN 90 OF THE COSTS OUT OF PROCESSING SMALLTICKET PURCHASES INTEL HAS A SIMILAR ACCOUNT WITH A BANK IT'S ALMOST A TOTALLY PAPERLESS SYSTEM SAID MR BAKER COMPANIES SAY THE NEW METHOD OF PAYING FOR SMALL PURCHASES IS PART OF THE SOCALLED REENGINEERING WAVE SWEEPING CORPORATE AMERICA COMPANIES HOPE THAT THE SYSTEM WILL ALLOW EMPLOYEES TO TAKE ON MORE RESPONSIBILITY AND BY USING AN ELECTRONIC ACCOUNT USE THEIR TIME FOR MORE IMPORTANT TASKS IT ALSO HELPS COMPANIES MANAGE THEIR SUPPLIERS BY PROVIDING SOPHISTICATED ANALYSES OF PURCHASES AND FITS NICELY WITH CASHMANAGEMENT PRODUCTS BANKS ARE OFFERING ABOUT 11 OF SCOTT'S 2 BILLION IN ANNUAL PURCHASES FOR MATERIAL COULD EVENTUALLY COME UNDER THE NEW SYSTEM THE PHILADELPHIABASED COMPANY HAS ABOUT 50 CARDHOLDERS CURRENTLY BUT HOPES TO HAVE CARDS IN THE HANDS OF ALL PURCHASING MANAGERS BY THE END OF 1993 WE WANT TO FREE PEOPLE UP FROM THE MUNDANE PAPERWORK SAYS KATHLEEN SNOW PROJECT MANAGER FOR WORLDWIDE PROCUREMENT AT SCOTT PAPER 9307220068 930722 JAPAN'S CHIEF DENIES GUILT ON TAXEVASION CHARGES TOKYO SHIN KANEMARU THE FALLEN KINGPIN OF JAPAN'S RULING LIBERAL DEMOCRATIC PARTY ENTERED A NOT GUILTY PLEA THURSDAY MORNING TO TAXEVASION CHARGES HIS PLEA PAVED THE WAY FOR A LENGTHY TRIAL THAT COULD FURTHER SHAKE UP JAPAN'S TUMULTUOUS POLITICAL WORLD THE 78YEAROLD POLITICIAN SAID THE INCOME ON WHICH HE ALLEGEDLY EVADED TAXES WASN'T FOR PERSONAL GAIN INSTEAD HE SAID THE MONEY WAS FOR POLITICAL REALIGNMENT WHICH HE SAID WAS HIS DREAM MR KANEMARU ALSO SAID THE MONEY IN QUESTION WASN'T COLLECTED DURING THE YEARS THAT THE PROSECUTORS SAY IT WAS MR KANEMARU IS CHARGED WITH EVADING 104 BILLION YEN 96 MILLION IN TAXES ON ALLEGEDLY HIDDEN INCOME TOTALING 185 BILLION YEN IF MR KANEMARU OUTLINES SUCH A SCHEME IN COURT IT COULD TAINT ANY NUMBER OF FORMER ASSOCIATES BOTH IN THE RULING LIBERAL DEMOCRATIC PARTY AND IN NEW SELFSTYLED REFORM PARTIES THAT RECENTLY SPLIT FROM THE LDP THE FOUNDERS OF THE LEADING NEW ANTILDP PARTY THE JAPAN RENEWAL PARTY WERE ONCE VERY CLOSE TO MR KANEMARU CURRENTLY THE LDP IS TRYING TO PICK A NEW LEADER WHILE ANTILDP PARTIES ARE TRYING TO FORGE A COALITION THAT CAN TAKE POWER FROM THE LDP MR KANEMARU'S TRIAL ANALYSTS SAID COULD AFFECT THE MANEUVERINGS IN BOTH CAMPS DEPENDING ON WHOM MR KANEMARU SAYS HE WORKED WITH TO PURSUE POLITICAL REALIGNMENT 9307220067 930722 BUSINESS BRIEF READRITE CORP FISCAL 3RDPERIOD EARNINGS FELL 89 REVENUE GREW 14 READRITE CORP SAID WORSENING INDUSTRY CONDITIONS AND INCREASED COMPETITION HAMMERED FISCAL THIRDQUARTER NET INCOME DOWN 89 TO 13 MILLION OR FOUR CENTS A SHARE FROM 122 MILLION OR 40 CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDED JUNE 30 REVENUE GREW 14 TO 1208 MILLION FROM 1056 MILLION THE MILPITAS CALIF MAKER OF FILM HEADS FOR DISK DRIVES SAID IT WOULD POST A SIGNIFICANT BUT UNSPECIFIED LOSS IN THE FOURTH QUARTER BECAUSE REVENUE WOULD FALL BELOW THIRDQUARTER LEVELS MAKING IT IMPOSSIBLE TO COVER FIXED COSTS THE DISKDRIVE MARKET HAS BEEN BATTERED BY SLASHED MARGINS AND CUTTHROAT PRICE COMPETITION BUT THE COMPANY SAID ITS BALANCE SHEET REMAINS STRONG AND IT'S WORKING TO CUT COSTS 9307220066 930722 BUSINESS BRIEF HERSHEY FOODS CORP NET FELL 24 IN 2ND QUARTER WITH SALES LITTLE CHANGED HERSHEY FOODS CORP'S SECONDQUARTER PROFIT FELL 24 WITH THE COMPANY BLAMING SLUGGISH SALES FOR THE DISAPPOINTING RESULTS LAST MONTH HERSHEY'S STOCK FELL SHARPLY AFTER IT SAID EARNINGS WOULD BE DOWN FOR THE QUARTER AND THE REPORTED PROFIT WAS IN LINE WITH REVISED ESTIMATES FOR THE QUARTER ENDED JULY 4 HERSHEY EARNED 26 MILLION OR 29 CENTS A SHARE COMPARED WITH 345 MILLION OR 39 CENTS A SHARE FOR THE SECOND QUARTER LAST YEAR SALES FOR THE QUARTER WERE 6184 MILLION LITTLE CHANGED FROM THE YEARAGO QUARTER ANALYSTS SAID HERSHEY'S SHIPMENTS SLOWED IN THE SECOND QUARTER AFTER HERSHEY PROMOTED ITS CANDIES TOO AGGRESSIVELY IN THE FIRST PART OF THE YEAR HERSHEY SAID THE BUSINESS OUTLOOK REMAINS POSITIVE FOR THE BALANCE OF THE YEAR AND 1993 WILL BE A RECORD YEAR FOR THE COMPANY THE HERSHEY PABASED COMPANY SAID IT SOON PLANS TO BEGIN A PREVIOUSLY ANNOUNCED 200 MILLION SHARE REPURCHASE PROGRAM HERSHEY CLOSED AT 44375 A SHARE DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9307220065 930722 SEC FILES A LAWSUIT AGAINST C&W PORTFOLIO TO FORCE REGISTRATION NEW YORK THE SECURITIES AND EXCHANGE COMMISSION FILED A LAWSUIT IN FEDERAL COURT SEEKING TO FORCE A SMALL BROKERAGE FIRM THAT SPECIALIZES IN ARRANGING REPO DEALS IN THE GOVERNMENT SECURITIES MARKET TO REGISTER WITH THE REGULATORY AGENCY C&W PORTFOLIO MANAGEMENT INC SO FAR HAS REFUSED TO REGISTER CONTENDING THAT THE REPO MARKET WHICH INVOLVES LENDING GOVERNMENT SECURITIES OVERNIGHT SHOULD BE EXEMPT FROM THE FEDERAL REGISTRATION RULES THAT GOVERN BROKERDEALERS REGISTRATION WOULD SUBJECT THE FIRM TO OVERSIGHT AND REPORTING REQUIREMENTS BY THE SEC JOEL WUGALTER THE PRESIDENT OF C&W SAID THE FIRM SHOULDN'T HAVE TO REGISTER BECAUSE WE'RE NEITHER A BROKER NOR A DEALER WE'RE AN INTERMEDIARY 9307220064 930722 BUSINESS BRIEF GENERAL INSTRUMENT CORP PROFIT POSTED FOR 2ND PERIOD AGAINST LOSS A YEAR EARLIER GENERAL INSTRUMENT CORP SAID SALES INCREASES IN ALL OF ITS BUSINESS LINES PROPELLED IT TO A PROFIT FOR THE SECOND QUARTER AGAINST A LOSS ONE YEAR AGO THE CHICAGO CABLE TELEVISION PRODUCTS COMPANY REPORTED NET INCOME OF 123 MILLION OR 20 CENTS A SHARE COMPARED WITH A NET LOSS OF 102 MILLION OR 23 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 20 TO 3118 MILLION FROM 259 MILLION THE COMPANY WHICH PRODUCES DIGITAL APPLICATIONS SUCH AS CONVERTER BOXES FOR THE CABLE INDUSTRY SAID THE YEARTOYEAR SALES GROWTH CONTINUED TO REFLECT INCREASED SPENDING BY CABLE OPERATORS ON CABLE DISTRIBUTION EQUIPMENT THAT GENERAL INSTRUMENT PROVIDES 9307220063 930722 BUSINESS BRIEF CHATTEM INC CHEMICALS DIVISION REPORTS IT LOST A MAJOR CUSTOMER CHATTEM INC MAKER OF PAMPRIN AND OTHER HEALTH CARE PRODUCTS SAID IT IS LOSING A LARGE CUSTOMER IN ITS CHEMICALS DIVISION THAT ACCOUNTS FOR 3 OF CORPORATE REVENUE CHATTEM EXPECTS THE LOST BUSINESS WILL CUT EARNINGS BY 10 CENTS A SHARE FOR THE REST OF THE FISCAL YEAR WHICH ENDS NOV 30 THE CHATTANOOGA TENN COMPANY SAID IT STILL EXPECTS TO MATCH ITS EARNINGS EXPECTATIONS OF 1 A SHARE IN FISCAL 1994 BECAUSE OF LINE EXTENSIONS IN TWO OF ITS BIG BRANDS FLEXALL AN EXTERNAL PAIN RELIEF GEL AND PAMPRIN A MENSTRUAL PAIN RELIEVER THE COMPANY SAID IT SIGNED A CONFIDENTIALITY AGREEMENT THAT BARRED IT FROM NAMING THE LOST CUSTOMER OR PRODUCT FOR ABOUT EIGHT WEEKS IN FISCAL 1992 THE COMPANY POSTED EARNINGS OF 8 MILLION OR 160 A SHARE ON 108 MILLION IN REVENUE THIS YEAR THE COMPANY POSTED A SPECIAL 20 A SHARE DIVIDEND 9307220062 930722 BUSINESS BRIEF UNION CARBIDE CORP CANADIAN PLANT TO BE SHUT 3RDQUARTER CHARGE PLANNED UNION CARBIDE CORP SAID IT WILL SHUT ITS PLANT IN MONTREALEAST QUEBEC THIS OCTOBER AND TAKE A THIRDQUARTER CHARGE RELATED TO THE CLOSURE THE SITE MANUFACTURES ETHYLENE OXIDE/GLYCOL WHICH IS USED TO MAKE ANTIFREEZE AMONG OTHER THINGS THE DANBURY CONN CHEMICAL CONCERN SAID THE RESTRUCTURING CHARGE WILL LARGELY OFFSET A 32 MILLION GAIN ON THE SALE OF ITS ORGANOSILICONS BUSINESS A SPOKESMAN SAID THE AMOUNT OF THE CHARGE HASN'T BEEN DETERMINED YET IN THE 1992 THIRD QUARTER THE COMPANY EARNED 25 MILLION OR 17 CENTS A SHARE THE COMPANY SAID IT IS MORE COSTEFFECTIVE TO USE ITS LARGER SCALE FACILITIES TO SUPPLY THE MARKETPLACE CUSTOMERS IN THE AREA WILL CONTINUE TO RECEIVE ETHYLENE GLYCOLS AND AIRCRAFT ANTIICING AND DEICING FLUIDS FROM THE EXISTING DISTRIBUTION NETWORK SUPPLIED FROM ITS THREE OTHER NORTH AMERICAN PRODUCTION FACILITIES 9307220061 930722 NORTHROP'S 2NDQUARTER NET ROSE 39 AS GENERAL DYNAMICS' PROFIT FELL 29 BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL NORTHROP CORP'S SECONDQUARTER NET INCOME ROSE 39 WHILE GENERAL DYNAMICS CORP'S NET SLID 29 IN A REFLECTION OF THE HEFTY DIVESTMENTS AT THAT SHRUNKEN DEFENSE CONTRACTOR NORTHROP'S PROFIT OF 53 MILLION OR 112 A SHARE INCLUDED A 5 MILLION LOSS PROVISION FOR THE CLASSIFIED TRISERVICE STANDOFF ATTACK MISSILE PROGRAM A YEAR AGO THE LOS ANGELES COMPANY EARNED 51 MILLION OR 108 A SHARE INCLUDING A 9 MILLION LOSS PROVISION ON THE SAME MISSILE PROGRAM IT SAID IN REPORTING ITS LATEST NUMBERS THAT THE POSSIBILITY OF FUTURE PROVISIONS REMAINS ON THE STANDOFF ATTACK MISSILE THE COMPANY'S LAST REMAINING FIXEDPRICE RESEARCH AND DEVELOPMENT CONTRACT THE RISE IN NET INCOME REFLECTED IMPROVED OPERATING PROFIT IN ITS AIRCRAFT BUSINESS SEGMENT AND A NARROWER LOSS IN THE MISSILES AND UNMANNED VEHICLES SEGMENT NORTHROP SAID SALES DECLINED 9 TO 131 BILLION FROM 144 BILLION THE COMPANY LOWERED ITS OVERALL SALES FORECAST FOR 1993 TO ABOUT 53 BILLION FROM THE 555 BILLION IT ESTIMATED EARLIER THIS YEAR ATTRIBUTING THE CHANGE TO LOWER ANTICIPATED PRODUCTION REVENUE ON THE B2 STEALTH BOMBER AND A REDUCTION IN BOEING 747 FUSELAGE DELIVERIES TO 54 FROM 59 IN THE SIX MONTHS NORTHROP HAD NET INCOME OF 105 MILLION OR 221 A SHARE UP 7 FROM 98 MILLION OR 208 A SHARE SALES FELL 6 TO 258 BILLION FROM 274 BILLION GENERAL DYNAMICS BASED IN FALLS CHURCH VA HAD NET INCOME OF 61 MILLION OR 193 A SHARE COMPARED WITH THE YEAREARLIER 86 MILLION OR 197 A SHARE YEARAGO RESULTS INCLUDED 44 MILLION FROM SOLD BUSINESSES SALES SLID 7 TO 793 MILLION FROM 852 MILLION THE COMPANY RESTATED ITS 1992 SALES AND EARNINGS FROM CONTINUING OPERATIONS TO REFLECT THE SALE OF ITS JET FIGHTER DIVISION TO LOCKHEED CORP IN MARCH EXCLUDING A ONETIME GAIN OF 9 MILLION OR 28 CENTS A SHARE REFLECTING DEFERRED GAINS FROM ASSET SALES GENERAL DYNAMICS HAD EARNINGS FROM CONTINUING OPERATIONS OF 48 MILLION OR FULLY DILUTED EARNINGS OF 152 A SHARE THAT COMPARED WITH 36 MILLION OR 82 CENTS A SHARE FROM CONTINUING OPERATIONS IN THE YEAREARLIER PERIOD A TENDER OFFER IN JULY 1992 REDUCED THE COMPANY'S SHARES OUTSTANDING TO 316 MILLION IN THE LATEST QUARTER FROM 438 MILLION A YEAR AGO WALL STREET FOCUSED ON GENERAL DYNAMICS' PROFITS FROM ITS CONTINUING TANK SUBMARINE AND ROCKET OPERATIONS WHICH SHARPLY EXCEEDED THE CONSENSUS ESTIMATE BY ANALYSTS JAMES R MELLOR GENERAL DYNAMICS' PRESIDENT AND CHIEF EXECUTIVE SAID IMPROVED PRODUCTIVITY AND EXPANDED PRODUCTION FOR FOREIGN MARKETS IN THE TANK DIVISION CONTRIBUTED TO THE LATEST RESULTS SIXMONTH NET INCOME FOR GENERAL DYNAMICS WAS 748 MILLION OR 2373 A SHARE INCLUDING A 645 MILLION GAIN FROM THE SALE OF ITS FIGHTER UNIT LAST YEAR THE COMPANY HAD NET OF 521 MILLION OR 1198 A SHARE SALES EASED TO 167 BILLION FROM 17 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GENERAL DYNAMICS GAINED 75 CENTS TO 90125 WHILE NORTHROP ROSE 375 CENTS TO 42 9307220060 930722 INTERNATIONAL WHILE YELTSIN IS AWAY PARLIAMENT PLAYS AT GUTTING PRIVATIZATION PLAN BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IN YET ANOTHER ATTACK ON PRESIDENT BORIS YELTSIN'S POLICIES RUSSIA'S CONSERVATIVE PARLIAMENT PASSED A RESOLUTION TO STRIP THE STATE PROPERTY COMMITTEE OF ITS CONTROL OVER THE CRUCIAL PROGRAM TO SELL OFF STATE ENTERPRISES IT WAS THE LEGISLATURE'S SECOND ATTEMPT IN AS MANY DAYS TO GUT THE PRIVATIZATION PROGRAM ON TUESDAY PARLIAMENT PETITIONED THE NATION'S HIGHEST COURT TO REVIEW A MAY DECREE BY PRESIDENT YELTSIN THAT FORTIFIED AND SPED UP THE PROGRAM THE TWO ACTIONS ARE A THOROUGHLY THOUGHTOUT ATTEMPT TO DESTROY PRIVATIZATION WHICH IS A KEY ELEMENT OF ECONOMIC REFORM SAYS A STATEMENT FROM THE OFFICE OF DEPUTY PREMIER AND PRIVATIZATION CHIEF ANATOLY CHUBAIS THE DEPUTY PREMIER'S OFFICE CALLED THE MOVES AN OBVIOUS ATTEMPT TO REANIMATE THE CENTRALLY CONTROLLED ECONOMY OF THE FORMER SOVIET UNION BUT OTHERS SAID THE LEGISLATURE'S ACTION WAS TOO LITTLE TOO LATE TO STOP THE MOMENTUM OF THE PRIVATIZATION PROCESS WITH PRESIDENT YELTSIN AWAY ON VACATION REFORMERS QUICKLY BEGAN LOBBYING AGAINST THE PROPOSALS BUT BOTH PASSED THE PARLIAMENT PRESIDIUM ALMOST WITHOUT DISCUSSION AND MOVED THROUGH THE FULL STANDING PARLIAMENT WITH SIMILAR EASE THE PROPOSALS WEREN'T DISCUSSED OPENLY BECAUSE THE BASIC PURPOSE WASN'T ECONOMIC BUT POLITICAL PART OF THE FIGHT OVER POWER SAYS AN OFFICIAL AT THE STATE PROPERTY COMMITTEE INDEED THE DECISION ON THE PRIVATIZATION PROGRAM IS ONLY ONE OF A NUMBER MADE BY PARLIAMENT SINCE MR YELTSIN LEFT TOWN LAST WEEK THAT CONTRADICT PRESIDENTIAL POLICIES THE LATEST JOUSTS IN RUSSIA'S RUNNING POWER STRUGGLE IN ONE OF ITS MORE SERIOUS ACTS PARLIAMENT REAFFIRMED ITS RECENT CLAIM THAT THE UKRAINIAN PORT CITY OF SEVASTOPOL THE BASE OF THE DISPUTED BLACK SEA FLEET IS RUSSIAN TERRITORY THE MOVE HAD SPARKED A FURIOUS REACTION FROM UKRAINE AND CONDEMNATION FROM THE UNITED NATIONS BUT THE MOVES AGAINST PRIVATIZATION ARE POTENTIALLY THE MOST DANGEROUS TO RUSSIA'S FRAGILE ECONOMIC REFORMS YESTERDAY'S DECISION DOESN'T ABOLISH THE STATE PROPERTY COMMITTEE BUT IT TURNS MANAGEMENT OF THE PRIVATIZATION PROGRAM OVER TO PRIME MINISTER VIKTOR CHERNOMYRDIN WHO CAN ASSIGN IT TO ANYONE HE CHOOSES MR CHERNOMYRDIN HAS GENERALLY REMAINED LOYAL TO PRESIDENT YELTSIN BUT HE HOLDS MORE CONSERVATIVE VIEWS THAN MR CHUBAIS THE STATE PROPERTY COMMITTEE CHAIRMAN HE COULD DECIDE TO ASSERT CONTROL OVER THE STATE PROPERTY COMMITTEE HIMSELF OR DISTRIBUTE SOME OF ITS POWERS AMONG VARIOUS MINISTRIES BUT MANY OF THESE SAME MINISTRIES STAND TO LOSE POWER THEMSELVES WHEN THEIR PROPERTY IS PRIVATIZED AND THEY ALREADY HAVE STRONGLY OPPOSED EXTENSIVE PRIVATIZATION THE RESOLUTION TO REQUEST A CONSTITUTIONAL COURT REVIEW OF THE PRESIDENT'S DECREE ON PRIVATIZATION EFFECTIVELY SUSPENDS THE DECREE THOUGH IT DOESN'T STOP THE PROGRAM FROM PROCEEDING THE MAY 8 DECREE GUARANTEED RUSSIANS THE RIGHT TO THEIR SHARE OF STATE PROPERTY ORDERING COMPANIES TO SELL AT LEAST 29 OF THEIR SHARES AT OPEN AUCTIONS AND THREATENING RECALCITRANT DIRECTORS WITH DISMISSAL IF THEY DIDN'T PURSUE PRIVATIZATION REFORMERS SAY THERE ARE AT LEAST TWO OTHER DRAFT RESOLUTIONS THAT CHALLENGE THE PROGRAM INCLUDING ONE THAT WOULD ABOLISH THE PRIVATIZATION VOUCHER FOR WHICH SHARES IN COMPANIES CAN BE EXCHANGED AND REPLACE IT WITH PRIVATIZATION ACCOUNTS IN BANKS SUCH A MOVE WOULD TIE THE WHOLE PROGRAM UP IN BUREAUCRATIC CONFUSION UNDERMINE CONFIDENCE IN PRIVATIZATION AND OPEN THE WAY FOR NEW ABUSES WARNS THE ASSOCIATION OF PRIVATIZED AND PRIVATIZING ENTERPRISES HEADED BY FORMER ECONOMIC REFORM CZAR YEGOR GAIDAR INVESTMENT FUNDS WOULD BE SHIFTED TOTALLY TO ONE SIDE SAYS ANDREI KOSOGOV HEAD OF ONE OF THE LARGEST VOUCHER INVESTMENT FUNDS ALPHA CAPITAL THE PEOPLE WHO HAVE BEEN LEAST ACTIVE AND MOST PESSIMISTIC WOULD TURN OUT TO WIN THE STATE PROPERTY COMMITTEE AND OTHER SUPPORTERS OF THE PROGRAM SAY THEY WILL TAKE UNSPECIFIED MEASURES TO PROTECT IT SOME REFORMERS AREN'T SO WORRIED THEY FIGURE THE RESOLUTIONS WILL DIE SIMPLY BECAUSE TOO MANY PEOPLE ALREADY HAVE A STAKE IN THE PROGRAM'S SUCCESS BY EARLY JULY THE VOUCHER'S MARKET PRICE HAD CLIMBED TO AROUND THE LEVEL OF ITS FACE VALUE 10000 RUBLES 992 SOME 57 OF SMALL ENTERPRISES IN RUSSIA HAD PRIVATIZED AND MORE THAN ONETHIRD OF THE PEOPLE WORKING AT LARGE ENTERPRISES NOW WORK FOR PRIVATE COMPANIES SO FAR THIS WEEK'S DECISIONS DON'T APPEAR TO HAVE AFFECTED VOUCHER PRICES NOR THE TURNOUT AT BROKERAGE OFFICES IT'S LIKE A SNOWBALL IT'S IMPOSSIBLE TO STOP THE PROCESS ANYMORE SAYS VALERI DZHAFAROV AN INVESTMENT ADVISER TOO MANY PEOPLE HAVE INVESTED THE PROCESS CAN'T BE REVERSED 9307220059 930722 BUSINESS BRIEF SUPERMARKETS GENERAL HOLDINGS COMPANY CANCELS OFFERING OF ITS PATHMARK STORES UNIT SUPERMARKETS GENERAL HOLDINGS CORP IN WOODBRIDGE NJ SHELVED A PLAN TO RAISE 150 MILLION THROUGH A PUBLIC OFFERING OF ITS PATHMARK STORES UNIT SAYING IT DID NOT BELIEVE THE SUPERMARKET AND DRUG CHAIN WOULD BRING AN ADEQUATE PRICE IN THE CURRENT MARKET A SECONDQUARTER STRIKE BY CLERKS IN 53 OF ITS 147 PATHMARK STORES DEPRESSED SECONDQUARTER EARNINGS A SPOKESMAN NOTED MAKING IT UNLIKELY THAT THE COMPANY WOULD REALIZE SUFFICIENT VALUE THROUGH THE OFFERING THE OFFERING WAS PART OF A RECAPITALIZATION PLAN THAT WOULD HAVE PUT 27 OF PATHMARK IN PUBLIC HANDS SUPERMARKETS GENERAL HOLDINGS IS 52 OWNED BY MERRILL LYNCH CAPITAL MARKETS INC THE COMPANY SAID A REVISED RECAPITALIZATION PLAN IS EXPECTED TO INCLUDE A BOND EXCHANGE BORROWING NEW MONEY REPAYING EXISTING DEBT AND SPINNING OFF TO SHAREHOLDERS ITS RICKEL HOME CENTER BUSINESS AND WAREHOUSING AND TRANSPORTATION UNITS THAT SERVE ITS STORES 9307220058 930722 TECHNOLOGY BRIEF COMPUTER SCIENCES CORP NASA CONSIDERS AWARDING CONTRACT FOR 200 MILLION COMPUTER SCIENCES CORP EL SEGUNDO CALIF SAID THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION PRELIMINARILY SELECTED IT TO HANDLE AN ESTIMATED 200 MILLION CONTRACT TO OPERATE AND MAINTAIN ITS LANGLEY CENTRAL SCIENTIFIC COMPUTING COMPLEX IN HAMPTON VA THE SEVENANDAHALF YEAR CONTRACT WHICH IS BEING NEGOTIATED INVOLVES SUPPORTING VARIOUS COMMUNICATIONS NETWORKS AND COMPUTING SYSTEMS AT THE COMPLEX ABOUT 180 COMPUTER SCIENTISTS AND TECHNICIANS WOULD PERFORM THE WORK AND COMPUTER SCIENCES SAID SOME NEW HIRES ARE ANTICIPATED AFTER THE CONTRACT NEGOTIATIONS ARE COMPLETED THE CONTRACT IS EXPECTED TO BEGIN IN SEPTEMBER COMPUTER SCIENCES SAID IT IS TEAMING WITH BETHESDA MDBASED INET WHICH WILL PROVIDE TELECOMMUNICATIONS SERVICES INCLUDING VIDEO NETWORKING AND TELECONFERENCING 9307220057 930722 BUSINESS BRIEF KNIGHTRIDDER INC DROP IN NET INCOME OF 83 POSTED FOR SECOND QUARTER KNIGHTRIDDER INC SAID SECONDQUARTER NET DROPPED 83 AS CAUTIOUS CUSTOMERS SCALED BACK SPENDING FOR ADVERTISING AND ONLINE DATA SERVICES THE MIAMIBASED MEDIA COMPANY EARNED 425 MILLION OR 77 CENTS A SHARE DOWN FROM 461 MILLION OR 84 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 53 TO 6217 MILLION FROM 5905 MILLION THE EARNINGS HIT THE LOW END OF ANALYSTS' ESTIMATES KNIGHTRIDDER BLAMED WEAK REVENUE GROWTH ON UNCERTAINTY ABOUT THE ECONOMY THE NEWSPAPER DIVISION'S PROFIT GREW 25 REFLECTING A 2 INCREASE IN ADVERTISING REVENUE FROM A YEAR EARLIER COSTS ROSE 33 PRIMARILY BECAUSE OF A NEW PRODUCTION PLANT IN PHILADELPHIA THE MIAMI HERALD HAD A SURGE IN AD SPENDING AFTER HURRICANE ANDREW AND THE DETROIT FREE PRESS SHOWED IMPROVEMENT BUT IN MOST OF ITS OTHER NEWSPAPER MARKETS ADVERTISING WAS SLACK KNIGHTRIDDER SAID OPERATING PROFIT AT THE COMPANY'S BUSINESS INFORMATION SERVICES DIVISION PLUNGED 21 PARTLY DUE TO LOWERTHANEXPECTED REVENUE GROWTH FOR ITS DIALOG SERVICE IN THE FIRST HALF THE COMPANY EARNED 656 MILLION OR 118 A SHARE THAT COMPARES WITH A LOSS OF 341 MILLION OR 62 CENTS A SHARE IN THE PRIORYEAR PERIOD AFTER A 131 MILLION CHARGE RELATED TO POSTRETIREMENT BENEFITS REVENUE ROSE 52 TO 121 BILLION FROM 115 BILLION 9307220056 930722 LETTERS TO THE EDITOR NIHILISM OUR DEADLIEST ENEMY SHAWN SULLIVAN'S JULY 6 EDITORIAL PAGE ARTICLE WIFEBEATING N THE HOOD WAS A HEARTFELT AND DEEPLY MOVING ESSAY ABOUT DOMESTIC VIOLENCE AND I APPRECIATE HIS EFFORTS TO MAKE A CHANGE IN THE WAY WOMEN IN OUR SOCIETY ARE TREATED HOWEVER HIS IDEALISM GETS IN THE WAY OF REALITY WHEN HE STATES THAT INSTEAD OF DOMESTICVIOLENCE EDUCATION IN SCHOOLS THERE SHOULD BE A CALL FOR STRONGER FAMILY VALUES BY POLITICIANS THE PEOPLE OF NEW YORK'S BEDFORDSTUYVESANT AND THE REST OF THE COUNTRY FOR THAT MATTER WILL NOT HEED A REQUEST FROM THEIR ELECTED OFFICIALS TO REINSTATE FAMILY VALUES THAT DEMONSTRATE ACCEPTABLE ALTERNATIVES TO PHYSICAL VIOLENCE WHILE I BELIEVE THE HOME IS THE BEST PLACE TO LEARN SUCH LESSONS IT IS CLEAR FROM THE STATISTICS THAT PARENTS AND OTHER MEMBERS OF THE COMMUNITY ARE NOT LIVING UP TO THEIR RESPONSIBILITIES IN THIS REGARD WHY SHOULD A REQUEST FROM THE GOVERNMENT CHANGE ANYTHING TEACHING SUCH LESSONS IN SCHOOL TO THE CHILDREN OF TODAY MAY BEGIN TO MAKE A CHANGE FOR THIS NEXT GENERATION WHO MAY IN TURN PASS THE IDEAS ON TO THEIR CHILDREN WHEN THE TIME COMES TO DO SO TO BELIEVE THAT EACH COMMUNITY OR EACH FAMILY WILL TAKE IT UPON THEMSELVES TO END DOMESTIC VIOLENCE JUST BECAUSE THEY ARE TOLD TO DO SO IS UNREALISTIC ALSO MR SULLIVAN FOCUSES ONLY ON THE PROBLEM OF DOMESTIC VIOLENCE IN THE INNER CITY AND THE EFFECT OF RAP MUSIC ON THE PREVALENCE OF ITS OCCURRENCE DOMESTIC VIOLENCE CROSSES ALL BOUNDARIES OF RACE AND CLASS HEAVYMETAL MUSIC AIMED AT WHITE MIDDLECLASS SUBURBAN TEENAGERS HAS ALSO BEEN KNOWN TO GLORIFY THE MISTREATMENT OF WOMEN AS MANY LIVES ARE DESTROYED BY DOMESTIC VIOLENCE OUTSIDE THE INNER CITY AS INSIDE IT DESPITE THESE FEW DISAGREEMENTS I WOULD LIKE TO EXPRESS MY APPRECIATION FOR MR SULLIVAN'S EFFORTS TO REMEDY SUCH A PERNICIOUS PROBLEM MR SULLIVAN EXPLAINED WHY EVEN UNRESTRAINED GOVERNMENT SPENDING WILL NEVER SERVE AS A SURROGATE FOR INDIVIDUAL MORAL VALUES HE IS TO BE COMMENDED FOR CANDIDLY ACKNOWLEDGING WHAT MODERN POLITICIANS HAVE LONG IGNORED THAT BIG GOVERNMENT IS SIMPLY NOT CAPABLE OF RIGHTING EVERY WRONG OR SUPPLYING THE MORAL FABRIC THAT MUST BE STITCHED BEFORE THOSE IN THE INNER CITY CAN BEGIN TO PROGRESS UNLIKE MANY OF THOSE CURRENTLY IN POSITIONS OF AUTHORITY MR SULLIVAN LOOKS TO THE INDIVIDUAL FAMILY UNIT AS THE ULTIMATE PURVEYOR OF VALUES REJECTING GOVERNMENTFUNDED PROGRAMS AS A PANACEA FOR PERVASIVE DOMESTIC VIOLENCE HE ASSIGNS TO PARENTS THE ULTIMATE RESPONSIBILITY FOR DEMONSTRATING TO THEIR OFFSPRING ACCEPTABLE ALTERNATIVES TO PHYSICAL VIOLENCE IN AN ERA IN WHICH THE CITIZENRY HAS BEEN CONDITIONED TO EXPECT STATE AND FEDERAL GOVERNMENTS TO RESPOND TO SOCIETY'S ILLS WITH LAYER AFTER LAYER OF INEFFECTIVE AND SELFPERPETUATING BUREAUCRACY MR SULLIVAN'S EMPHASIS ON INDIVIDUAL ACCOUNTABILITY WAS A BREATH OF FRESH AIR I WOULD LIKE TO COMPLIMENT YOUR INTERN MR SULLIVAN FOR HIS EXCELLENT ARTICLE ALTHOUGH I AM 46 I AM STILL FIGHTING THE GOOD FIGHT FOR MORALS AND VALUES IN MY FAMILY AND COMMUNITY PERHAPS MY MOST IRKSOME OPPONENT IS THE PSEUDOSOPHISTICATED WHATEVER ATTITUDE THAT WOULD PROBABLY BE ANOTHER EXAMPLE OF THE NIHILISM MR SULLIVAN WRITES ABOUT HE STATES THAT MORAL LEADERSHIP DOES NOT APPEAR TO BE COMING FROM THE SOCIAL WORK FIELD I WOULD LIKE TO POINT OUT AN EXCEPTION SOLUTIONFOCUSED BRIEF THERAPY PIONEERED IN MILWAUKEE AT BRIEF THERAPY INDIVIDUALS ARE SEEN AS MORALLY RESPONSIBLE IN SPITE OF THEIR PSYCHOSES PHOBIAS DRUG ADDICTIONS OR MALEVOLENT CHILDHOOD EXPERIENCES THE CENTER WORKS PRIMARILY WITH LOWINCOME MINORITIES AND I BELIEVE IT PROVIDES A WAY OUT OF A CONSIDERABLE NUMBER OF PROBLEMS MR SULLIVAN WRITES WIFEBEATING IS THE LEADING CAUSE OF EMERGENCYROOM VISITS BY WOMEN THIS PREPOSTEROUS ASSERTION WILL NOT WITHSTAND EVEN THE MOST CURSORY REVIEW OF THE PATIENT LOGS OF ANY EMERGENCY DEPARTMENT IN THE NATION WHY IS IT THAT WHEN SPEAKING ABOUT THE DEARTH OF FAMILY VALUES IN THIS COUNTRY THE BEST WE CAN COME UP WITH IS WHAT THE DEARTH LOOKS LIKE NIHILISM AS MR SULLIVAN POINTS OUT IS THE BELIEF THAT THERE IS NO BASIS FOR TRUTH OR MORALITY AND SUMMED UP IN THE GANG MEMBER'S WHY NOT RESPONSE TO WHY HE FEELS THE NEED TO BEAT OTHERS UP GIVEN NO MORAL CODE THE GANG MEMBER HAS A POINT MR SULLIVAN STATES THAT THERE ARE FEW PEOPLE TO GIVE HIM A SATISFACTORY ANSWER TO HIS QUESTION BUT THERE ARE THE MEDIA HAVE SIMPLY BEEN RELUCTANT TO PUT IT IN PRINT THE BASIS FOR A MORAL CODE AND SUBSEQUENT FAMILY VALUES CANNOT BE IMPOSED BY GOVERNMENT POLICIES CENSORSHIP OR SIMPLY TELLING PARENTS TO RAISE THEIR CHILDREN WITH MORE CHARACTER THE SOURCE OF FAMILY VALUES LIES IN A BELIEF IN GOD AND A DESIRE TO DO WHAT HE SAYS IS RIGHT WITHOUT THIS BELIEF THERE IS NO BASIS FOR TELLING THE GANG MEMBER HIS CODE HAS ANY LESS VALIDITY THAN ANYONE ELSE'S WE TIPTOE AROUND GOD SEPARATE CHURCH FROM JUST ABOUT EVERY ASPECT OF SOCIETY AND THEN WONDER WHAT HAPPENED TO FAMILY VALUES THERE ARE PLENTY OF PEOPLE OUT THERE TO ANSWER THE GANG MEMBER'S QUESTION THEY CAN BE FOUND AT YOUR LOCAL CHURCH OR SYNAGOGUE WE'VE DONE A GREAT JOB IDENTIFYING THE PROBLEM NOW IT'S TIME TO GO BACK TO THE SOLUTION 9307220055 930722 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 1/2 HIGH 3 LOW 2 3/4 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 311 60 TO 89 DAYS 314 90 TO 119 DAYS 317 120 TO 149 DAYS 319 150 TO 179 DAYS 327 180 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 317 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 264 TWO MONTHS 268 THREE MONTHS 289 SIX MONTHS 314 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 313 ONE MONTH 320 THREE MONTHS 338 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 308 60 DAYS 310 90 DAYS 313 120 DAYS 315 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 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 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 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 705 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 7 60 DAYS 710 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9307220054 930722 CONTINENTAL AIR NEARED COLLAPSE IN '92 CEO SAYS GALVESTON TEXAS CONTINENTAL AIRLINES' CHIEF EXECUTIVE OFFICER ROBERT R FERGUSON III TESTIFIED THAT THE CARRIER CAME WITHIN TWO DAYS OF SHUTTING DOWN IN JULY 1992 TWO MONTHS AFTER AMR CORP'S AMERICAN AIRLINES UNIT CUT FARES BY AS MUCH AS 50 I ASKED OUR CHIEF FINANCIAL OFFICER IN JULY 1992 WHEN WE HAD ABOUT 50 MILLION IN CASH IF IT WAS TIME TO PANIC MR FERGUSON SAID HE SAID NO NOT YET GIVE ME ANOTHER WEEK OR SO' A WEEK LATER CONTINENTAL WAS DOWN TO 29 MILLION IN CASH OR ROUGHLY TWO DAYS' WORTH OF TICKET REVENUE IF AN UNEXPECTED BILL HAD COME IN WE WOULD NOT HAVE BEEN ABLE TO MEET OUR OBLIGATIONS MR FERGUSON SAID CONTINENTAL HAD ALREADY CUT PAY AND CAPITAL SPENDING MR FERGUSON SAID THAT LEFT ONLY THE AIRLINE'S AIRCRAFT LEASES WHICH HAD ALREADY BEEN RENEGOTIATED ON MORE FAVORABLE TERMS CONTINENTAL WENT TO THOSE LESSORS AGAIN FOR HELP ACKNOWLEDGING FOR THE FIRST TIME THE DEPTHS OF THE CARRIER'S TROUBLES LAST SUMMER MR FERGUSON TESTIFIED IN FEDERAL COURT HERE THAT THE FARE CUTS LENGTHENED CONTINENTAL'S STAY IN CHAPTER 11 BANKRUPTCY PROCEEDINGS BY NEARLY A YEAR CONTINENTAL EMERGED FROM BANKRUPTCY PROCEEDINGS IN LATE APRIL CONTINENTAL AND WINGS HOLDINGS INC'S NORTHWEST AIRLINES ARE SUING AMERICAN CLAIMING THAT IT CUT FARES IN APRIL AND MAY 1992 IN AN ATTEMPT TO DRIVE THEM OUT OF BUSINESS AMERICAN HAS SAID IT WAS TRYING TO SIMPLIFY A COMPLICATED AND EXPENSIVE FARE SYSTEM AMERICAN IS TO START ITS DEFENSE NEXT WEEK 9307220052 930722 WORLD MARKETS GERMAN DATA DEFLATE HOPES FOR LOWER RATES IN EUROPE SENDING MANY BOURSES' PRICES DOWN A WALL STREET JOURNAL NEWS ROUNDUP NEW GERMAN MONEYSUPPLY DATA THAT INDICATED A TIGHT CREDIT POLICY DASHED HOPES FOR LOWER EUROPEAN INTEREST RATES AND PRESSURED STOCKS YESTERDAY LONDON SHARES FELL IN QUIET TRADING AS INVESTORS PAUSED FOR THOUGHT FRANKFURT EQUITIES ALSO WERE DRAGGED DOWN BY PROFITTAKING PARIS AND STOCKHOLM PRICES SANK ON THE RATE OUTLOOK WITH THE JAPANESE POLITICAL SITUATION STILL UNSETTLED TOKYO SHARE PRICES FINISHED MIXED WEDNESDAY ON MODERATE VOLUME WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10652 DOWN 001 REFLECTING LOWER MARKETS IN THE AMERICAS AND EUROPE AND HIGHER IN ASIA/PACIFIC MARKETS PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13016 UP 411 OR 33 WITH DUNLOP OF MALAYSIA POSTING AN 8 GAIN IN ITS LOCAL CURRENCY HEALTH CARE STOCKS TRAILED AT 10796 DOWN 218 OR 2 WITH CAREMARK INTERNATIONAL OF THE US SLIDING 44 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 98 POINTS TO 28141 THE FT 30STOCK INDEX EASED 12 POINTS TO 22201 VOLUME WAS 5541 MILLION SHARES COMPARED WITH 6048 MILLION SHARES A DAY EARLIER INSTITUTIONAL INVESTORS TOOK A BREAK AFTER BUYING A LARGE PART OF BRITISH GOVERNMENTHELD BRITISH TELECOMMUNICATIONS SHARES CAUTIOUS CORPORATE STATEMENTS AT ANNUAL MEETINGS THAT DON'T REFLECT BULLISH ECONOMIC DATA HAVE CAST DOUBT ON THE STRENGTH OF A BRITISH RECOVERY THE MARKET IGNORED NEW BRITISH DATA SHOWING MUCH STRONGERTHANEXPECTED RETAIL SALES FOR JUNE AND A NARROWED TRADE GAP WITH NONEUROPEAN COMMUNITY NATIONS GERMANY'S REPORT ON ITS M3 MONEYSUPPLY GROWTH ADDED TO THE LONDON BOURSE'S MALAISE EUROPEAN INVESTORS HAVE BEEN HOPING FOR A GERMAN RATE CUT THIS MONTH ALLOWING OTHER EUROPEAN CENTRAL BANKS TO CUT THEIR LENDING RATES AND PROVIDE A BOOST FOR STOCKS GERMANY'S PRELIMINARY M3 MONEYSUPPLY FOR THE FIRST HALF INCREASED AT A 71 ANNUAL RATE MOST ECONOMISTS HAD EXPECTED GROWTH OF 66 THE SHOWING ALSO STRAYED FROM THE GERMAN CENTRAL BANK'S TARGET FOR FIGHTING INFLATION IN FRANKFURT WHERE THE MONEYSUPPLY FIGURES WERE RELEASED AFTER THE CLOSE OF TRADING THE DAX 30STOCK INDEX LOST 1518 POINTS TO 182381 COMING DOWN FROM A HIGH FOR THIS YEAR IN ADDITION TO PROFITTAKING PRESSURE ON STOCKS RESULTED FROM THE ZURICH MARKET'S BIG DROP AND DECLINES IN THE GERMAN AFTERMARKET THE PREVIOUS DAY PARIS SHARE PRICES SLUMPED 11 IN QUIET TRADING WITH BROADBASED LOSSES AMID CONTINUING FEARS THAT THE FRENCH FRANC COULD COME UNDER RENEWED SELLING PRESSURE IN COMING WEEKS ANXIETY WAS REKINDLED WHEN THE FRENCH CURRENCY WEAKENED AGAINST THE GERMAN MARK AFTER THE RELEASE OF THE DISAPPOINTING GERMAN MONEYSUPPLY FIGURES IN AMSTERDAM PRICES SLIPPED BROADLY AS A CORRECTION FROM A RALLY EXTENDED TO A SECOND DAY PARTICULARLY FOR COMPANIES WITH BUSINESS LINES THAT RESPOND TO ECONOMIC CYCLES DECLINES ALSO RESULTED FROM A WEAKER US DOLLAR AND A SELLOFF OF CONSUMERPRODUCTS STOCKS WORLDWIDE TOPPED OFF BY THE GERMAN MONEYSUPPLY DATA MILAN STOCKS RETREATED PARTLY ON PROFITTAKING IN VOLATILE TRADING FOLLOWING A STRONG SHOWING A DAY EARLIER INVESTORS ALSO WERE ON EDGE BECAUSE OF THE ITALIAN LIRA'S WEAKNESS AND CONTINUED TURBULENCE IN FOREIGNEXCHANGE MARKETS THE LIRA'S FALL IN PARTICULAR AGAINST THE MARK AND THE US DOLLAR ERODED HOPES THAT INTEREST RATES WILL FALL SOON IN MADRID SHARES SLIPPED AS THE SPANISH PESETA'S WEAKNESS HELPED DAMP MARKET SENTIMENT ENDING AN 11SESSION WINNING STREAK STOCKHOLM SHARES TUMBLED 1 FROM THEIR 1993 HIGH AS SWEDISH INTEREST RATES ROSE FOLLOWING GERMANY'S MONEYSUPPLY REPORT INVESTORS TOOK PROFITS BECAUSE PRICES ALREADY REFLECTED ANTICIPATED REDUCTIONS IN SWEDEN'S RATES THAT WOULD FOLLOW CUTS BY GERMANY NOW LESS LIKELY ZURICH PRICES WHICH TUMBLED 24 A DAY EARLIER DROPPED FURTHER ON PROFITTAKING AND ON SELLING OF BANKING AND CHEMICAL BLUE CHIPS THOUGH THE CORRECTION HAD BEEN EXPECTED IT CAME FASTER AND STRONGER THAN MANY HAD ANTICIPATED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 11292 POINTS TUESDAY ROSE 4291 TO 2008091 ON THURSDAY THE NIKKEI ROSE 1040 POINTS TO CLOSE THE MORNING SESSION AT 2009131 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES COMPARED WITH 2367 MILLION SHARES A DAY EARLIER DESPITE THE NIKKEI'S ADVANCE LOSERS TOPPED GAINERS 523420 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 1005 POINTS TUESDAY EDGED UP 169 TO 163632 ANXIETY ABOUT JAPAN'S POLITICAL AND ECONOMIC PROSPECTS GAVE INVESTORS AN EXCUSE TO STAY OUT OF THE MARKET AND THOSE THAT REMAINED FOUND FEW REASONS TO BUY THE NIKKEI TWICE FELL BELOW 20000 DURING THE SESSION BUT CAME BACK UP ON BUYING BY DEALERS OF JAPAN'S BIG FOUR SECURITIES FIRMS AND BY PUBLIC PENSION FUNDS WHICH CONTINUED TO BE PIVOTAL TO MARKET STABILITY IN SYDNEY STOCKS ROSE PUSHING THE MAIN INDEX ONCE AGAIN TO A NEW SIXYEAR HIGH THE MARKET CONTINUED TO BE SUPPORTED BY SPECULATION ABOUT AN AUSTRALIAN INTERESTRATE CUT SOON AND PRICES WERE BOOSTED BY BUYING BY OVERSEAS INVESTORS SINGAPORE SHARES SURGED WITH SENTIMENT LIFTED BY NEWS THAT THE HUGE FLOTATION OF SINGAPORE TELECOM WILL BE EASED INTO THE MARKET IN PHASES TAIPEI EQUITIES FELL TO THE LOWEST CLOSING LEVEL SINCE FEBRUARY ON TURNOVER THAT WAS THE THINNEST SINCE LATE JANUARY AS INVESTORS AWAITED CLUES ABOUT THE FLAGGING MARKET BUT MANILA SHARES CLIMBED TO A RECORD IN HECTIC TRADING BREAKING THE COMPOSITE INDEX'S 165439 HIGH SET MAY 5 AND FINISHED AT 168186 UP 3109 POINTS OR 19 THE PHILIPPINE PESO'S DEPRECIATION WILL HAVE A MAJOR EFFECT ON TELEPHONE EARNINGS FROM INTERNATIONAL TOLL FEES IN WELLINGTON SHARES STRENGTHENED SHARPLY IN HEAVY TRADING SETTING A NEW CLOSING HIGH FOR THIS YEAR LED BY PHONE AND FORESTRY BLUE CHIPS AMONG CORPORATE DEVELOPMENTS IN FRANKFURT DAIMLERBENZ FELL 950 MARKS OR 14 TO 680 MARKS 40025 THE INDUSTRIAL COMPANY SAID IT WOULD CUT AN ADDITIONAL 100 TO 200 MANAGEMENT POSITIONS THROUGH ATTRITION AT THE HOLDING COMPANY IN THE NEXT TWO YEARS PREVIOUSLY IT SET 350 JOB REDUCTIONS DAIMLER UNITS HAVE ALREADY ANNOUNCED PLANS FOR WORKFORCE CUTS TO COPE IN GERMANY'S RECESSION IN PARIS ALCATELALSTHOM DROPPED 4 FRENCH FRANCS TO 645 FRANCS 11111 THE INDUSTRIAL CONCERN AGREED TO ACQUIRE STC SUBMARINE SYSTEMS FROM THE NORTHERN TELECOM EUROPE UNIT OF NORTHERN TELECOM OF CANADA THE PURCHASE WILL ALLOW ALCATEL THROUGH ITS ALCATEL CABLE TO CREATE AN UNDERSEA CABLE GROUP 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 9307220051 930722 REVIEW & OUTLOOK EDITORIAL ASIDES ARMS AND THE BEAR THE CLINTON ADMINISTRATION ACHIEVED A SMALL VICTORY RECENTLY GETTING THE RUSSIANS TO FORGO THE SALE TO INDIA OF SOME TECHNOLOGIES RELATED TO ROCKET ENGINES IT HIGHLIGHTS THE WISDOM OF OPENING MARKETS TO RUSSIAN PRODUCTS FOR ASIA BRINGS A REMINDER THAT IF RUSSIA CANNOT EXPORT BUTTER IT WILL TRY TO SELL MORE GUNS CHINA WAS THE FIRST IN THE QUEUE AT RUSSIA'S ARMS BAZAAR BUYING 24 SU27 FIGHTER AIRCRAFT LAST YEAR THE PEOPLE'S REPUBLIC ALSO CONTINUES TO MURMUR VAGUE NOISES ABOUT PURCHASING THE VARYAG A RUSSIANMADE AIRCRAFT CARRIER NOW SITTING IN UKRAINE JUST TALKING ABOUT BUYING THE VARYAG HAS MADE CHINA'S NEIGHBORS ANXIOUS IF IT WERE TO GO AHEAD CHINA WOULD BECOME THE MOST POTENT ASIAN NAVAL FORCE OVERNIGHT NEXT UP WAS MALAYSIA WHICH RECENTLY AGREED TO BUY 18 MIG29M FIGHTERS FROM THE RUSSIANS AS WELL AS EIGHT MCDONNELL DOUGLAS F/A18D STRIKE AIRCRAFT FROM THE US ALTHOUGH THE DEAL COULD STILL FALL THROUGH IT IS THE CLOSEST RUSSIA HAS COME TO BREAKING INTO THE BRISK SOUTHEAST ASIAN ARMS MARKET AND OF COURSE THERE WERE THE PLANS FOR INDIA TO PURCHASE THE RUSSIAN ROCKET ENGINES AND TECHNOLOGY THE US HAD OBJECTED THAT THE SALE INVOLVED TECHNOLOGY THAT COULD BE CONVERTED TO MILITARY USES IT IS IN NO ONE'S INTEREST TO ENCOURAGE AN ARMS RACE IN ASIA OR TO KEEP THE RUSSIAN WEAPONS INDUSTRY RUNNING FULL BLAST BUT THESE ARE THE INEVITABLE CONSEQUENCES OF THE WEST'S SHORTSIGHTED POLICY OF MAKING RUSSIA'S ENTRY INTO THE WORLD'S MARKETS DIFFICULT 9307220050 930722 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO SKATES AND CAMP GEAR PUMP UP SPORTINGGOODS SALES IN A FRUGAL SUMMER AMERICANS ARE ON A THRIFT REGIMEN CHOOSING SPORTS THAT DON'T OPEN THE GATE TO A LOT OF SPENDING SAYS GEORGE ROSENBAUM OF CONSULTANT LEO J SHAPIRO & ASSOCIATES POPULAR INLINE SKATES FIT THE BILL HE SAYS BECAUSE CHEAPER MODELS NOW SELL FOR ABOUT 75 A PAIR AND YOU DON'T HAVE TO PAY TO SKATE IN CALIFORNIA CAMPGEAR SALES ARE SOLID AS MORE SITES CLOSED DURING THE DROUGHT ARE REOPENED SAYS TOM SCHLAUCH OF UNITED MERCHANDISING CORP MEANWHILE PLAY IT AGAIN SPORTS IN STONE MOUNTAIN GA WHICH ALSO CARRIES NEW GOODS SAYS USED EXERCISE EQUIPMENT MOVES BRISKLY THEY WANT TO SAVE 100 OR 200 IF THEY CAN SAYS SCOTT WARD MANAGER AND NEWLY SPARTAN ATHLETES ARE NOT FINICKY ABOUT SHOES PEOPLE ARE BUYING A PAIR AND DOING DIFFERENT SPORTS IN THE SAME SHOES SAYS JIM WILLIAMSON OF SPIEGELS IN NEW YORK FOR FALL SOME STORES BET ON INLINE HOCKEY GEAR A TON OF NEW LEAGUES WERE SET UP THIS YEAR SAYS RAINBO SPORTS SHOP IN CHICAGO SKIN CARE SERVES UP AN EXOTIC SALAD AS FIRMS MILK THE NATURAL APPROACH GRAPEFRUIT SEEDS AND SUGAR BUT NOT SPICE POPPED UP IN GOODS HAWKED AT LAST WEEK'S AESTHETICS' WORLD EXPO IN NEW YORK A SHOW FOR BEAUTYSALON OWNERS A HIT ALEXANDRIA'S BODY SUGARING INC'S GOOEY HAIRREMOVAL CREAM MADE FROM LEMON AND SUGAR IT'S THE QUEEREST THING I'D EVER SEEN BUT IT WORKS SAID PEGGY RENFREW OF THE TORONTO FIRM HIRSUTE CLIENTS PAY 45 A LEG TO GET SLATHERED WITH THE BEAUTY BUSINESS HURTING LIKE ANY OTHER PRODUCTS MUST YIELD QUICK RE SULTS FOR THE CLIENT SAID BIANCA FINKLE OF FACE SOLUTIONS IN CALIFORNIA HER 2000 REMEDY FACEOLOGY 2000 COMPRISES GELS AND MASKS FROM GRAPEFRUIT SEEDS AND ORANGE RINDS AND A DEVICE THE SIZE OF A TV REMOTE CONTROL THAT SHOOTS ELECTRICAL CUR RENTS AT WRINKLES MEANWHILE VITTORIO TULIPANI OF SAN RAFAEL CALIF PROMISED STEAM AND ALTERNATIVE MEDICINE WITH HIS PORTABLE AROMATHERAPY STEAM TUBE A 1190 FIVEFOOTHIGH EUCALYPTUS OIL SAUNA REDLIGHT RUNNERS SMILE CAMERA COPS PLAN STAKEOUTS IN NEW YORK ANOTHER WRINKLE IN ELECTRONIC TRAFFIC ENFORCEMENT REDLIGHT CAMERAS SNAP THE REAR OF CARS DRIVING THROUGH A RED LIGHT PHOTOS AND TICKETS ARE MAILED TO OWNERS WHO ARE TRACED VIA THE PLATES NEW STATE AND CITY LAWS MAKE REGISTEREDCAR OWNERS LIABLE FOR THE OFFENSE AS IN PARKING VIOLATIONS THE CITY WILL INSTALL ROAD SENSORS AND 15 CAMERAS IN NOVEMBER UNDER AN 84 MILLION 3 1/2YEAR CONTRACT WITH ELECTRONIC DATA SYSTEMS MEANWHILE THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY A RESEARCH GROUP FUNDED BY CASUALTY INSURERS WILL TEST THE CAMERAS IN ARLINGTON VA TO STUDY THE SYSTEM'S EFFIACY IN CURBING URBAN CRASHES BERND RIND OF LEMARQUIS INTERNATIONAL SUPPLIER OF THE CAMERAS TO NEW YORK SAYS THE SYSTEM IS MORE ACCEPTABLE IN THE US THAN PHOTO RADAR USED TO NAB SPEEDERS REDLIGHT RUNNING IS A MORE SERIOUS OFFENSE THAN BREAKING THE SPEED LIMIT HE SAYS BUT THE AMERICAN AUTOMOBILE ASSOCIATION WARNS THAT THE CAMERAS RAISE DUE PROCESS ISSUES COUPON CLIPPERS REDEEMED 37 BILLION CENTSOFF COUPONS IN THE FIRST HALF 10 FEWER THAN LAST YEAR NCH PROMOTIONAL SERVICES CHICAGO SAYS COUPON DISTRIBUTION STALLED AT 1992 LEVELS PARTLY ACCOUNTING FOR THE SLOWER CLIPPING PACE AVERAGE COUPON VALUE SLIPPED TWO CENTS TO 57 CENTS NIGHT RIDERS OF BUSES CAN SHORTEN THE WALK HOME AS TRANSIT AGENCIES TRY TO BOOST SAFETY AND RIDERSHIP RIDERS AT A HANDFUL OF SYSTEMS INCLUDING NEW JERSEY'S CAN ASK DRIVERS TO STOP AT ANY SPOT ALONG A ROUTE AFTER 8 PM THE NEW ROUTINE DOESN'T ADD TO COSTS SAYS JOSEPH CARUSO A MEMBER OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION A BETTER MAILBOX WIDE USE OF DELIVERY SERVICES OTHER THAN THE US MAIL CALLS FOR A NEW MAILBOX SAYS TOM WORDEN A TENNESSEE ARCHITECT HIS DESIGN REPLACES THE TRADITIONAL POSTMOUNTED BOX WITH A FIVEFOOT THREESECTION STRUCTURE FOR US MAIL AND NONPOSTAGE AND PARCEL DELIVERIES MULTIMEDIA MOVES INTO MORE SHELVES AT CONSUMERELECTRONIC STORES WITH 80 OF MULTIMEDIA SALES COMING FROM THE HOME MARKET RETAILERS BEGIN OFFERING MULTIMEDIA PRODUCTS LIKE SOUNDBOARDS AND CDROM DRIVES SAYS BRUCE RYON AN ANALYST AT DATAQUEST INC IN CALIFORNIA IT IS PART OF THEIR EFFORT TO DRAW HIGHINCOME CONSUMERS HE SAYS CIRCUIT CITY STORES INC RICHMOND VA HAS TRIPLED ITS STOCK OF MULTIMEDIA ITEMS SO FAR IN 1993 DOW STEREO INC SAN DIEGO DOUBLED THE FLOOR SPACE FOR THESE ITEMS AT ITS FLAGSHIP STORE BUT MULTIMEDIA ISN'T AN IMMEDIATE HIT CONSUMERELECTRONIC STORES STILL ARE NOT AN INTUITIVE PLACE TO GO TO FOR COMPUTER PRODUCTS NOTES LAURA CURRAN OF MERRIN INFORMATION SERVICES PALO ALTO CALIF SOME RETAILERS REMAIN WARY STUART ROSE OF AUDIO VIDEO AFFILIATES INC DAYTON OHIO WANTS TO SEE HOW PEOPLE IN BIGGER CITIES DO BEFORE HE CARRIES MULTIMEDIA WARES LEE SCHOENFELD OF BEST BUY CO BASED IN MINNEAPOLIS CONCEDES THE CATEGORY HASN'T BEEN AN EASY SELL BUT SAYS WE'RE CONFIDENT THIS IS GOING TO BE THE YEAR BRIEFS ON PLAYING FIELDS AND OFF A BILL IN CONGRESS WOULD HELP MAKE TIGER FENWAY WRIGLEY AND YANKEE BALLPARKS PART OF THE NATIONAL PARK SYSTEM IF THEIR OWNERS OPT TO SELL OR DEMOLISH THEM ATHLETES AND THE LAW AN EXHIBIT AT PHILADELPHIA'S FEDERAL COURTHOUSE SHOWS LIBEL AND OTHER CIVIL SUITS BROUGHT BY PROFESSIONAL JOCKS 9307220049 930722 INDICTMENT OF OWNERS OF ARMOREDCAR FIRM IS EXPANDED BY US NEW YORK A FEDERAL PROSECUTOR EXPANDED A PREVIOUS INDICTMENT AGAINST THE OWNERS OF A LONG ISLAND NY ARMOREDCAR COMPANY TO INCLUDE CHARGES THAT THEY HAD DEFRAUDED A LLOYD'S OF LONDON UNDERWRITING SYNDICATE NEW CHARGES AGAINST ROBERT AND SUSANNA SCARETTA OF REVERE ARMORED INC RAISE THE POSSIBILITY THAT SIX BANKS INCLUDING CITICORP MAY HAVE TROUBLE GETTING REIMBURSED BY LLOYD'S FOR 38 MILLION ALLEGEDLY STOLEN FROM THEM LLOYD'S LOOKS LIKE A CLEAR VICTIM SAID DAVE HATTEM DEPUTY CHIEF OF THE CRIMINAL DIVISION OF THE EASTERN DISTRICT OF THE US ATTORNEY'S OFFICE IN FEBRUARY WHEN THE SHORTFALL WAS DISCOVERED AT REVERE'S VAULT THOMAS ALDRIDGE OF LLOYD'S UNDERWRITING SYNDICATE JANSON GREEN LTD SAID THERE IS THE POSSIBILITY CRIMINAL ACTIVITY COULD EXEMPT HIS GROUP FROM PAYING CLAIMS ON THE 100 MILLION POLICY REVERE HAD IN FORCE JANSON GREEN ATTORNEY THOMAS PATTERSON OF BIGHAM ENGLAR JONES & HOUSTON IN NEW YORK SAID IT'S TOO EARLY TO SAY WHAT APPROACH WE WILL TAKE ON CLAIMS BUT THE NEW INDICTMENT IS CERTAINLY A SIGNIFICANT DEVELOPMENT YESTERDAY'S SUPERSEDING INDICTMENT ALLEGED THE POLICY WAS FRAUDULENT AND GRANTED UNDER FALSE PRETENSES THE SCARETTAS HAVE PLEADED NOT GUILTY TO THE CHARGES FOUR OTHER PEOPLE INCLUDING AN EMPLOYEE AT THE US UNIT OF BRITAIN'S NATIONAL WESTMINSTER BANK PLC PREVIOUSLY PLEADED GUILTY AN INVESTIGATION IS CONTINUING INTO WHETHER EMPLOYEES OF SOME OF THE BANKS TOOK BRIBES TO DIRECT BUSINESS TO REVERE 9307220048 930722 WHO'S NEWS TWO MORE DIRECTORS OF FIELDCREST RESIGN EDEN NC FIELDCREST CANNON INC SAID ANOTHER TWO RECENTLY APPOINTED DIRECTORS RESIGNED FROM ITS BOARD BRINGING THE TOTAL NUMBER OF DEPARTURES TO FOUR WITHIN THE PAST WEEK THE TEXTILE CONCERN WOULDN'T COMMENT ON THE EXODUS WHICH HAS CLAIMED ALL THE DIRECTORS PUT IN PLACE LAST MONTH BY THE DUMAINES TRUST CONTROLLING SHAREHOLDER OF AMOSKEAG CO BASED IN BOSTON AMOSKEAG IN TURN HOLDS A CONTROLLING INTEREST IN FIELDCREST J FRANK GERRITY II AND WILLIAM C BULLOCK JR JOINED MARY BUCKLE WILLIAMS AND G EDWARD BROOKING JR WHO RESIGNED LAST FRIDAY NONE OF THE DEPARTED BOARD MEMBERS COULD BE REACHED FOR COMMENT ON JUNE 16 AMOSKEAG ADDED THE FOUR DIRECTORS INCREASING THE SIZE OF THE FIELDCREST BOARD TO 16 IN RESPONSE TO WHAT THE COMPANY TERMED AN UNSOLICITED TAKEOVER BID FROM SPRINGS INDUSTRIES INC SPRINGS BASED IN FORT MILLS SC TENDERED ITS BID IN MAY THE HOME FURNISHINGS AND TEXTILE MANUFACTURER OFFERED ABOUT 345 MILLION FOR FIELDCREST THE WORLD'S LARGEST TOWEL MAKER AND ABOUT 115 MILLION FOR AMOSKEAG IN JUNE HOWEVER THE DUMAINES TRUST CHARACTERIZED THE SPRINGS BIDS AS NOT ACCEPTABLE AND ASKED SPRINGS TO CONTRACT THE TRUST'S INVESTMENT BANKER SMITH BARNEY HARRIS UPHAM AND CO A SPOKESMAN FOR SPRINGS AT THE TIME SAID THE COMPANY'S INTEREST IN FIELDCREST HASN'T ABATED HE DECLINED FURTHER COMMENT IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FIELDCREST SHARES CLOSED AT 26 UNCHANGED 9307220047 930722 INDUSTRY FOCUS US OFFICE VACANCY RATE SEEMS TO BE DECLINING FINALLY BUT SIGNIFICANT INCREASES IN RENTS AND BUILDING VALUES ARE FAR AWAY BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL THERE IS FINALLY A RAY OF HOPE FOR THE EMBATTLED OWNERS OF THE NATION'S OFFICE BUILDINGS VACANCIES APPEAR TO HAVE PEAKED BUT NO ONE EXPECTS THE MARKET TO BOUNCE BACK VERY FAST SO RELIEF FOR DEBTSTRAPPED OWNERS REMAINS YEARS AWAY THE OFFICE VACANCY RATE IN THE NATION'S LARGEST CITIES HAS BEGUN DROPPING AFTER CLIMBING NEARLY CONTINUOUSLY SINCE THE MID1980S ACCORDING TO THE LATEST QUARTERLY SURVEYS BY BOTH CUSHMAN & WAKEFIELD INC AND CB COMMERCIAL REAL ESTATE GROUP INC TWO NATIONAL BROKERAGE FIRMS THE SUPPLY OF VACANT OFFICE SPACE IN THE NATION'S 50 LARGEST CITIES WILL TAKE 115 YEARS TO ABSORB AS OF THE END OF 1992 DOWN FROM 128 YEARS IN 1991 THE FIRST SUCH DECLINE SINCE SALOMON BROTHERS INC BEGAN TRACKING SUPPLY IN 1986 ACCORDING TO A REPORT BEING PREPARED BY THE FIRM I DEFINITELY THINK THE WORST IS OVER IN TERMS OF OFFICE VACANCIES SAYS RAY TORTO OF TORTO WHEATON RESEARCH AN ARM OF CB COMMERCIAL WHAT DOES IT MEAN FOR OWNERS WHO ARE IN TROUBLE ASKS ARTHUR MIRANTE II CUSHMAN & WAKEFIELD'S PRESIDENT AND CHIEF EXECUTIVE OFFICER NOT MUCH IN MOST PARTS OF THE COUNTRY WE'RE SEEING RENTS STABILIZE BUT IT'S GOING TO TAKE A LONG TIME FOR BUILDING VALUES TO GO UP IN TODAY'S MARKET OFFICE BUILDINGS ARE BEING VALUED ON CURRENT CASH FLOW A FUNCTION OF VACANCY RATES AND RENT LEVELS IN THE 1980S WHEN MANY WERE BUILT THE MARKET WAS WILLING TO FACTOR IN EXPECTED INCREASES IN RENT WHICH IN MANY CASES NEVER MATERIALIZED THE VACANCY RATE IN THE NATION'S 53 LARGEST CITIES FELL TO 18 IN THE SECOND QUARTER DOWN FROM A HIGH OF 192 IN THE FIRST QUARTER OF 1992 ACCORDING TO CB COMMERCIAL IN 1980 BEFORE LAST DECADE'S BUILDING BOOM BEGAN THE VACANCY RATE WAS ABOUT 5 WHICH WITH THE CONSTANT MOVEMENT OF TENANTS IS CONSIDERED FULL OCCUPANCY MR TORTO PREDICTS THAT VACANCIES WILL CONTINUE DROPPING AND WILL DIP UNDER 12 BY 1998 BUT THERE WON'T BE ANY SIGNIFICANT INCREASE IN RENTS UNTIL VACANCY RATES GET DOWN BELOW THAT 12 LEVEL SAYS KENNETH ROSEN CHAIRMAN OF THE UNIVERSITY OF CALIFORNIA'S CENTER FOR REAL ESTATE AND URBAN ECONOMICS IT'S GOING TO BE A SLOW PROCESS MR MIRANTE IS A BIT MORE OPTIMISTIC ARGUING THAT RENTS WILL BEGIN RISING IN AS LITTLE AS SIX MONTHS BUT ONLY VERY GRADUALLY SALOMON BROTHERS CALCULATED THAT THE INVENTORY OF VACANT SPACE SHRANK IN 1992 BUT THAT WITH THE CURRENT LEVEL OF DEMAND IT WILL STILL TAKE MORE THAN A DECADE TO CONSUME WHAT'S ALREADY BUILT IF THE ECONOMY PICKS UP SIGNIFICANTLY THE INVENTORY COULD BE WORKED OFF MORE QUICKLY NO ONE EXPECTS THE RESUMPTION OF NEW CONSTRUCTION WHICH WOULD SLOW THE PROCESS IN THE FIRST HALF OF 1993 ONLY 22 MILLION SQUARE FEET OF NEW OFFICE SPACE WAS BUILT IN THE 40 MAJOR METROPOLITAN AREAS TRACKED BY CUSHMAN & WAKEFIELD DOWN FROM 266 MILLION IN ALL OF 1992 AND 1399 MILLION IN 1986 VACANCY RATES FOR THE SUBURBS OF 40 MAJOR METROPOLITAN AREAS HAVE BEEN INCHING DOWN FOR SEVERAL YEARS ACCORDING TO CUSHMAN & WAKEFIELD'S SURVEY AND DROPPED TO 201 IN THE SECOND QUARTER THE LOWEST IN THE SEVEN YEARS THE FIRM HAS BEEN TRACKING IT MORE SIGNIFICANTLY THE RATE FOR CENTER CITIES DROPPED TO 196 IN THE SECOND QUARTER FROM A SIXYEAR HIGH OF 199 THE PREVIOUS QUARTER THE FIRM REPORTED THE LARGEST DECLINE SINCE EARLY 1987 BROKERS CAUTION HOWEVER THAT MARKET HEALTH DIFFERS WIDELY FROM CITY TO CITY DEPENDING ON THE STRENGTH OF LOCAL ECONOMIES AND THE LEVEL OF OVERBUILDING IN THE 1980S IN PHOENIX FOR EXAMPLE WHERE AN EARLY ECONOMIC RECOVERY HAS HELPED WORK OFF THE LARGE INVENTORY OF VACANT SPACE THE DOWNTOWN VACANCY RATE DROPPED FROM 259 DURING THE FIRST QUARTER TO 23 IN THE SECOND ACCORDING TO CUSHMAN & WAKEFIELD IN BOSTON WHERE THE ECONOMY IS FINALLY IMPROVING AFTER A PROLONGED SLUMP THE RATE DROPPED FROM 18 TO 169 OVER THE SAME TIME PERIOD AND IN MIDTOWN MANHATTAN WHERE LEASING HAS PICKED UP SIGNIFICANTLY OVER THE PAST YEAR THE RATE EDGED DOWN FROM 172 TO 17 ON THE OTHER HAND IN LOS ANGELES WHERE THE RECESSION HIT MUCH LATER THAN IN THE NORTHEAST THE VACANCY RATE JUMPED TO 267 IN THE SECOND QUARTER FROM 252 THREE MONTHS EARLIER THE FIRM SAID VACANCIES ALSO INCREASED IN HOUSTON MIAMI PHILADELPHIA DALLAS AND OAKLAND CALIF AMONG OTHER CITIES MANY REALESTATE EXPERTS CAUTION THAT THE RECOVERY WILL REMAIN WEAK UNTIL THERE'S SIGNIFICANT GROWTH IN WHITECOLLAR EMPLOYMENT NOTING THAT THE NATION ADDED ABOUT 250000 WHITECOLLAR JOBS IN THE PAST SIX MONTHS MR ROSEN PREDICTS VACANCY RATES WILL CONTINUE TO DROP IN THE NEXT FIVE YEARS BY ABOUT TWO PERCENTAGE POINTS A YEAR BUT JOHN DOWLING EXECUTIVE VICE PRESIDENT OF CUSHMAN & WAKEFIELD EXPRESSES CONCERN THAT JOB CUTS AT MANY LARGE CORPORATIONS WILL REMAIN A PERSISTENT PROBLEM FOR THE OFFICE MARKET I REALLY BELIEVE THAT THE REENGINEERING OF CORPORATE AMERICA WILL FREE UP MORE SPACE AND PUT IT OUT ON THE MARKET HE SAYS THE TALK OF THE INDUSTRY IS THAT MAJOR CORPORATIONS HAVE A MANDATE TO LIVE WITH LESS SPACE SAYS MITCHELL ROSCHELLE A REALESTATE CONSULTANT AT COOPERS & LYBRAND WHO MENTIONS THAT ONE EUROPEAN CLIENT HAS DECIDED TO CUT ITS US SPACE USE BY 50 THERE'S ALSO DEBATE IN THE INDUSTRY WHETHER URBAN DOWNTOWNS CAN HOLD THEIR OWN IN THE LONG RUN AGAINST THE SUBURBS WHICH OFFER EASIER COMMUTES AND RESPITE FROM URBAN ILLS INDUSTRY EXPERTS SAY THAT IT'S A DEBATE THAT HAS BEEN GOING ON FOR YEARS AND THAT THE EVIDENCE REMAINS INCONCLUSIVE 9307220046 930722 WHO'S NEWS TWO ARE EXPECTED TO RESIGN POSTS AS IBM DIRECTORS FOLLOWING A CHORUS OF PROTEST THAT INTERNATIONAL BUSINESS MACHINES CORP'S BOARD IS OUT OF TOUCH WITH TECHNOLOGY TWO LONGTIME DIRECTORS J RICHARD MUNRO AND STEPHEN BECHTEL JR ARE EXPECTED TO RESIGN THE MOVES WOULD BE THE LATEST IN A SWEEPING CHANGE OF IBM'S MOST POWERFUL OFFICIALS IBM ARMONK NY CLEARED ASIDE ITS TOP THREE EXECUTIVES THIS YEAR AND NAMED LOUIS V GERSTNER JR CHAIRMAN MR GERSTNER HAS ALREADY BROUGHT IN SEVERAL OTHER EXECUTIVES FROM OUTSIDE IBM AT HIS FIRST ANNUAL MEETING IN APRIL MR GERSTNER FACED AN OUTCRY FROM SHAREHOLDERS WHO LAMBASTED IBM'S BOARD FOR HAVING TOO MANY AGING EXECUTIVES WITH NO EXPERIENCE IN THE COMPUTER INDUSTRY IBM'S HUGE INVESTMENT IN THE COLLAPSING MAINFRAME COMPUTER MARKET AND ITS MISSTEPS IN THE BOOMING PERSONAL COMPUTER MARKET HAVE LEFT IT WITH ENORMOUS LOSSES AND A PLUNGING STOCK PRICE MR MUNRO THE RETIRED COCHAIRMAN OF TIME WARNER INC DISCUSSED THE BOARD'S LIMITATIONS AND COMING CHANGES IN AN INTERVIEW TO BE PUBLISHED THIS WEEK IN BUSINESS WEEK IBM DECLINED TO COMMENT ON THE MOVES WHICH INDUSTRY SOURCES CONFIRMED MR MUNRO AND MR BECHTEL RETIRED CHAIRMAN OF CONSTRUCTION GIANT BECHTEL GROUP INC COULDN'T BE REACHED FOR COMMENT IBM IS EXPECTED TO ANNOUNCE THE CHANGES NEXT WEEK WHEN THE BOARD IS SCHEDULED TO MEET ALSO NEXT WEEK AS PREVIOUSLY REPORTED IBM IS EXPECTED TO ANNOUNCE ITS SECONDQUARTER RESULTS AND A PRETAX OF CHARGE OF ABOUT 2 BILLION TO PAY FOR SLASHING ITS WORK FORCE BY ABOUT 50000 PEOPLE THIS YEAR 9307220045 930722 CREDIT MARKETS BOND PRICES PLUNGE ON WAVE OF NEW ISSUANCE CONCERNS ABOUT FED'S POLICY ON INTEREST RATES BY THOMAS T VOGEL JR AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY BOND PRICES PLUNGED YESTERDAY AS A WAVE OF NEW SECURITIES FLOODED THE MARKET AND UNDERWRITERS SOLD TREASURY SECURITIES AS INSURANCE AGAINST LOSSES ON ANY UNSOLD CORPORATE MUNICIPAL OR MORTGAGEBACKED SECURITIES ALSO CONTRIBUTING TO THE PLUNGE WERE CONCERNS ABOUT THE FEDERAL RESERVE'S POLICY TOWARD INTEREST RATES IN THE WAKE OF FED CHAIRMAN ALAN GREENSPAN'S COMMENTS TO THE HOUSE BANKING COMMITTEE ON TUESDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 7/8 POINT OR MORE THAN 875 FOR A BOND WITH A 1000 FACE VALUE TO 106 13/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE JUMPED TO 662 FROM 655 ON TUESDAY OTHER MATURITIES WERE ALSO HIT HARD THE 10YEAR NOTE FOR EXAMPLE DROPPED MORE THAN 3/4 POINT TO 102 31/32 TO YIELD 583 UP FROM 573 FOR MANY ISSUERS OF YESTERDAY'S WAVE OF DEBT HOWEVER IT WAS A GOOD DAY THEY WERE ABLE TO LOCK IN LOW INTEREST RATES JUST BEFORE THEY JUMPED FOR COMPANIES LIKE WALT DISNEY CO AND THE TENNESSEE VALLEY AUTHORITY IT LOOKS AS THOUGH THEIR PLANS TO COME TO MARKET YESTERDAY WERE PARTICULARLY WELL TIMED THAT'S BECAUSE DISNEY SOLD 100YEAR BONDS AND TVA SOLD 50YEAR BONDS THUS ENSURING THE VERY LOW YIELDS ON THEIR DEBT YESTERDAY WAS THE THIRD CONSECUTIVE DAY OF DECLINES IN THE BOND MARKET AND THE WORST PERFORMANCE OF THE 30YEAR TREASURY BOND IN MONTHS WE HAD BEEN SEEING GRADUAL IMPROVEMENT WEEK AFTER WEEK BUT NOW WE'VE HAD A COUPLE OF DAYS OF VOLATILITY THAT ENDED IN DOWN DAYS NOTED ZANE BROWN HEAD OF FIXED INCOME AT LORD ABBETT & CO DRIVING PRICES LOWER YESTERDAY WAS A COMBINATION OF FACTORS ACCORDING TO DEALERS AMONG SHORTER MATURITIES THE IMPACT OF COMMENTS MADE BY FED CHAIRMAN GREENSPAN TUESDAY CONTINUED TO RIPPLE THROUGH THE MARKET TRADERS SAID THAT MR GREENSPAN DURING THE FIRST LEG OF HIS SEMIANNUAL HUMPHREYHAWKINS TESTIMONY CLEARLY INDICATED THAT THE FED WOULD BE INCLINED TO RAISE INTEREST RATES SHOULD THE INFLATION THREAT RETURN MR GREENSPAN'S STANCE DISAPPOINTED SOME IN THE MARKET WHO HAD BEEN BETTING THAT THE ECONOMY WAS SOFTENING AND THAT PRICES ON SHORTER SECURITIES WOULD HAVE ROOM TO HEAD HIGHER PEOPLE WERE TOYING WITH THE IDEA OF THE MARKET BREAKING OUT ON THE UPSIDE BUT ALAN GREENSPAN'S COMMENTS PRETTY MUCH QUASHED THAT FOR THE TIME BEING SAID ANDREW BRENNER A TRADER AT NOMURA SECURITIES INTERNATIONAL INC MEANWHILE TREASURYS MATURING IN 10 YEARS OR MORE DROPPED SHARPLY AS TRADERS MOVED TO HEDGE AGAINST A RISING BACKLOG OF CORPORATE ISSUES UNDERWRITERS OF CORPORATE DEBT WHEN FACED WITH ISSUES THAT MAY NOT BE MOVING OFF THEIR SHELVES QUICKLY ENOUGH FREQUENTLY HEDGE THEIR EXPOSURES BY SELLING TREASURYS SHORT IN A SHORT SALE AN UNDERWRITER SELLS A BORROWED SECURITY IN THE HOPE OF REPLACING IT LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE A FLOOD OF MORE THAN 86 BILLION IN NEW CORPORATE MUNICIPAL MORTGAGEBACKED BOND ISSUANCE INCLUDING A 2 BILLION ISSUE OF REVENUE ANTICIPATION NOTES FROM THE STATE OF CALIFORNIA AND A 155 BILLION ISSUE FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ALSO PRESSURED TREASURY PRICES THE RUSH BY CORPORATIONS TO LOCK IN THE CURRENT LEVELS OF LONGTERM INTEREST RATES HAS MADE SOME INVESTORS THINK TWICE ABOUT BETTING THAT RATES WILL FALL FURTHER WHEN SOMEONE DECIDES TO LOCK IN MONEY FOR 50 OR 100 YEARS OTHER PEOPLE LOOK AT THIS AND COME TO THE CONCLUSION THAT WE ARE CLOSE TO THE LOWS IN INTEREST RATES SAID MR BROWN OF LORD ABBETT DESPITE THE HEDGING MOVES MADE BY DEALERS FOR SOME NEW ISSUES YESTERDAY IT APPEARS THAT DEMAND WAS RATHER STRONG FOR TWO OF YESTERDAY'S MOST INTERESTING NEW ISSUES IN THE CORPORATE MARKET THE TVA SOLD A TOTAL OF 2 BILLION OF NEW SECURITIES YESTERDAY 750 MILLION OF 50YEAR BONDS AND 125 BILLION OF 10YEAR NOTES THE ENTIRE UNDERWRITING WAS COORDINATED BY FIRST BOSTON CORP WHICH ACTED AS LEAD UNDERWRITER FOR THE 50YEAR ISSUE LEHMAN BROTHERS WAS THE LEAD UNDERWRITER FOR THE 10YEAR ISSUE WHICH WAS PRICED WITH 6125 COUPONS AT 98176 TO YIELD 630 050 PERCENTAGE POINT ABOVE 10YEAR TREASURY NOTES THE 50YEAR BONDS NONCALLABLE FOR 10 YEARS WERE PRICED WITH A 725 COUPON AT 97508 TO YIELD 744 083 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND ACCORDING TO RICHARD DUBUSC HEAD OF CORPORATE UNDERWRITING AT FIRST BOSTON THE 50YEAR BONDS WERE ALL SOLD BY DAY'S END SOME ON WALL STREET SAID THAT LEHMAN BROTHERS HAD NOT BEEN ABLE TO SELL ALL OF THE 10YEAR NOTES BY DAY'S END THANKS TO THE JUMP IN INTEREST RATES THOUGH DEMAND APPEARED TO BE STRONG THE TVA SOLD THE 50YEAR BONDS AT A WIDER SPREAD THAN A SIMILAR 1 BILLION ISSUE OF 50YEAR BONDS LAST APRIL THE SPREAD THEN WAS JUST 058 PERCENTAGE POINT BUT THOSE BONDS WERE CALLABLE IN 20 YEARS RATHER THAN 10 YEARS WHICH MAY EXPLAIN THE WIDER SPREAD ACCORDING TO ROBERT ARIEL AN ASSISTANT FINANCE PROFESSOR AT CITY UNIVERSITY OF NEW YORK IF LONGTERM RATES DON'T REMAIN LOW ONCE YOU GET BEYOND 30 YEARS IN MATURITY IT DOES NOT REALLY MATTER HOW MUCH LONGER YOU EXTEND MATURITY SINCE THE PRESENT VALUE OF ALL PAYMENTS BEYOND 30 YEARS ARE ONLY A SMALL FRACTION OF THE 100YEAR BOND'S PRESENT VALUE BUT GIVEN THAT DISNEY WAS ABLE TO SELL TWICE AS MANY 100YEAR BONDS AS IT HAD ORIGINALLY PLANNED HE ADDED IT LOOKS LIKE GIMMICKS HAVE VALUE ON WALL STREET AS WELL I DON'T KNOW WHAT ANYBODY WANTS TO DO WITH THOSE BONDS SAID PETER HEGEL HEAD OF FIXEDINCOME INVESTMENTS AT VAN KAMPEN MERRITT IF YOU BUY THEM HE SAID YOU'VE LENT 300 MILLION FOR THE LENGTH OF MY LIFETIME AND THE LIFETIMES OF MY CHILDREN DESPITE SKEPTICISM ABOUT THE VALUE TO INVESTORS OF LOCKING IN LOW YIELDS FOR A CENTURY THERE WAS MUCH TALK YESTERDAY ABOUT A NUMBER OF OTHER ISSUERS INTERESTED IN ISSUING 100YEAR BONDS IN THE NEAR FUTURE MORGAN STANLEY CONTACTED OTHER ISSUERS POTENTIALLY INTERESTED IN SELLING 100YEAR BONDS IN RESPONSE TO A REQUEST FROM AN UNNAMED INSTITUTIONAL INVESTOR LAST WEEK AND CAME UP WITH DISNEY IDEAL CANDIDATES INCLUDE COMPANIES WITH LONGTERM ASSETS AND STRONG CREDIT RATINGS BANKERS SAID OTHER INVESTMENT BANKERS ARE REPORTEDLY BARRAGING POTENTIAL ISSUERS WITH CALLS APPARENTLY ONE OF THE ISSUERS INTERESTED IN GIVING THE IDEA SOME SERIOUS THOUGHT IS CSX CORP A RAILROAD HOLDING COMPANY THAT ALREADY HAS FIVE OUTSTANDING 100YEAR BONDS ACCORDING TO DAVID OWEN A MANAGING DIRECTOR YESTERDAY HE SAID THAT THE COMPANY HAD RECEIVED NO LESS THAN FIVE CALLS FROM INVESTMENT BANKS PITCHING THE IDEA WHILE CSX HASN'T MADE ANY DECISIONS IT WOULD BE WILLING TO DO A 100YEAR DEBT OFFERING IF IT RECEIVED THE RIGHT TERMS IF ALL THE STARS WERE IN LINE WE WOULD CONSIDER IT HE SAID THE COMPANY WOULD EXPECT INVESTMENT BANKERS TO HAVE A NUMBER OF INVESTORS LINED UP TO BUY THE PAPER HE SAID NEARLY 4 BILLION OF DEBT ABOUT EVENLY DIVIDED BETWEEN SHORTTERM AND LONGTERM ISSUANCE FLOODED THE MUNICIPAL MARKET YESTERDAY CALIFORNIA'S HUGE REVENUE ANTICIPATION NOTE DEAL REPRESENTED HALF OF THAT VOLUME THE STATE SOLD 165 BILLION OF FIXEDRATE NOTES AND 350 MILLION OF INNOVATIVE FLOATINGRATE NOTES ALL DUE JUNE 28 1994 AS PART OF ITS FISCAL 19931994 CASHFLOW MANAGEMENT PLAN LEAD UNDERWRITER LEHMAN BROTHERS SAID BOTH SEGMENTS OF THE OFFERING WERE OVERSUBSCRIBED DEMAND WAS AVID ENOUGH IN FACT TO ENABLE THEM TO CUT THE YIELD 005 PERCENTAGE POINT TO 285 ON THE FIXEDRATE NOTES FROM THE INITIAL YIELD OF 290 NONETHELESS THE MUNI MARKET'S SOFTNESS WHICH REFLECTS RISING SHORTTERM TREASURY YIELDS AND THE INFLUX OF NEW MUNI DEBT RESULTED IN HIGHER RATES ON THE RANS THAN EXPECTED LAST WEEK RATES ON THE FLOATINGRATE SECURITIES ARE RESET EACH WEDNESDAY BASED ON THE SEVENDAY PUBLIC SECURITIES ASSOCIATION INDEX PLUS 010 PERCENTAGE POINT SAID A LEHMAN OFFICIAL CALIFORNIA'S RANS ARE RATED MIG1 BY MOODY'S INVESTORS SERVICE INC AND SP1 BY STANDARD & POOR'S CORP IN SECONDARY TRADE PRICES CONTINUED TO SHOW THE EFFECTS OF HEAVY ISSUANCE AS PLAYERS TRIMMED HOLDINGS TO MAKE ROOM FOR THE NEW DEBT MOST ISSUES LOST AT LEAST AS MUCH AS 5/8 POINT AFTER ERODING 1/4 TO 1/2 POINT TUESDAY AMONG ACTIVE ISSUES DENVER CITY AND COUNTY AIRPORT 675 REVENUE BONDS SERIES C DUE 2022 ENDED 3/8 LOWER AT 102 5/8 TO YIELD 648 FANNIE MAE TOOK ADVANTAGE YESTERDAY OF CURRENT PREPAYMENT SENTIMENT TO PRICE A 155 BILLION ISSUE BACKED BY STRIPPED MORTGAGEBACKED SECURITIES STRIPPED MORTGAGEBACKED SECURITIES TRUST 237 IS BACKED BY PRINCIPALONLY AND INTERESTONLY SECURITIES GLEANED FROM THE AGENCY'S 8 COLLATERAL IN THE MIDST OF ANOTHER SPARSE WEEK THE AGENCIES ANNOUNCED NEW REAL ESTATE MORT GAGE INVESTMENT CONDUITS AND INCREASES TO OLD REMICS TOTALING NEARLY 4 BILLION FOR YESTERDAY'S SESSION ALONE THAT WAS IN ADDITION TO THE 155 MILLION STRIPS DEAL THE STRIPS TRUST DEAL IS A SECURITY CONSISTING OF SECURITIES THAT PAY INVESTORS BASED EITHER ON THE INTEREST OR PRINCIPAL OF THE UNDERLYING MORTGAGE LOANS INVESTORS ARE WILLING TO BUY INTERESTONLY BONDS BACKED BY 8 MORTGAGE SECURITIES WHICH ARE CONSIDERED VULNERABLE TO PREPAYMENTS BECAUSE THE BONDS ARE TRAD ING AT EXTREMELY LOW PRICES THE IOS IN FANNIE TRUST 237 WERE PRICED AT ABOUT 23 3/4 THE POS WERE PRICED AT ABOUT 82 STILL CONSIDERED AN ATTRACTIVE LEVEL THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9307220044 930722 STREAM OF TOURISTS IS CUT TO A TRICKLE BY MIDWEST FLOODS RIVERBOATS INNS RESTAURANTS AND PROFESSIONAL BASEBALL ARE AMONG THE BIG LOSERS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL ROBERT LUMPP THE OWNER OF THE 400PASSENGER MARK TWAIN RIVERBOAT IN HANNIBAL MO WATCHES HIS LIVELIHOOD FLOATING EMPTY FOR THE FOURTH WEEK BECAUSE OF THE MISSISSIPPI RIVER'S FLOODING EACH MORNING I SHED A TEAR HE SAYS BUT I TRY NOT TO SHED TOO MANY TEARS BECAUSE I'M AFRAID THE DAMN RIVER WILL COME UP THE FLOODS THAT HAVE SWAMPED DOZENS OF MIDWESTERN COMMUNITIES ARE ALSO WREAKING HAVOC WITH SUMMER TRAVELERS AND THE BUSINESSES THAT SERVE THEM THE RAINS HAVE KEPT MANY VACATIONERS HOME OR SENT THEM ELSEWHERE DELTA QUEEN STEAMBOAT CO'S TWO VESSELS WHICH WERE SCHEDULED TO STEAM FROM ST LOUIS TO ST PAUL MINN ARE HEADING INSTEAD TO CHATTANOOGA TENN THE CLOSING OF THE UPPER MISSISSIPPI RIVER FORCED THE CHANGE THE RAINS ARRIVED AT THE WORST TIME FOR BUSINESSES THAT RELY ON SUMMER VACATIONERS SHOWBOATS INNS RESTAURANTS AND PROFESSIONAL BASEBALL HAVE ALL BEEN HURT IN SMALL RIVER TOWNS LIKE HANNIBAL WHERE THE RECREATION OF MARK TWAIN'S WHITE CLAPBOARD BOYHOOD HOME IS NORMALLY A BIG TOURIST DRAW THE STREETS ARE EMPTY AND FOR MANY PEOPLE SEASONAL ACTIVITIES LIKE FISHING CAMPING AND WATER SKIING HAVE BEEN POSTPONED UNTIL OTHER SUMMERS NO ONE KNOWS HOW MUCH MONEY WILL BE LOST IN CANCELED TRIPS AND MANY BUSINESSES HAVE BEEN TOO PREOCCUPIED TO COUNT THE LOSSES WE HAVEN'T SAT DOWN TO FIGURE OUT HOW MANY PEOPLE HAVE CANCELED BECAUSE WE'RE STILL BAILING WATER EACH DAY SAYS LARRY SCOTT GENERAL MANAGER OF THE CRYSTAL INN AND CONFERENCE CENTER IN DES MOINES IOWA THE 227ROOM AIRPORT HOTEL LIKE MOST OF THE REST OF THE CITY HAS BEEN WITHOUT RUNNING WATER SINCE JULY 10 THE CRYSTAL INN HOWEVER NEVER CLOSED THANKS TO SOME OPERATING TRICKS NOT TAUGHT IN HOTELMANAGEMENT SCHOOL TOILETS WERE FILLED AND FLUSHED WITH RAINWATER CAPTURED FROM DRAIN SPOUTS AND THE SWIMMING POOL DOUBLED AS A COMMUNAL BATH SOME PEOPLE HAVE BEEN DRAWN TO THE WATER'S EDGE TO SEE THE FLOODING FIRSTHAND IN ST CHARLES MO ALONG THE MISSOURI RIVER NORTHWEST OF ST LOUIS SIGHTSEERS WITH VIDEO CAMERAS RECORD GEESE SWIMMING ON MAIN STREET AND THE GOLDEN ROD SHOWBOAT FLOATING IN A PARKING LOT BUT TELEVISION IMAGES OF SUBMERGED OAK TREES AND FLOATING PICKUP TRUCKS HAVE KEPT MANY TRAVELERS AWAY FROM DRY DESTINATIONS IN THE MIDWEST THE ST LOUIS CONVENTION AND VISITORS COMMISSION SAYS IT HAS RECEIVED MANY INQUIRIES FROM OUTOFTOWNERS ABOUT RUMORS THAT ANIMALS FROM THE CITY'S ZOO HAVE BEEN EVACUATED OR THAT HIGH WATERS HAVE IMMERSED THE 630FOOT GATEWAY ARCH FOR THE ARCH TO BE UNDERWATER THE WORLD WOULD HAVE TO BE AT AN END SAYS FRANK VIVERITO THE COMMISSION'S VICE PRESIDENT OF PUBLIC RELATIONS NONETHELESS THE IMPRESSION OF A CITY UNDER SEA HAS CONTRIBUTED TO AN UNUSUALLY HIGH NUMBER OF NOSHOWS FOR ST LOUIS CARDINALS BASEBALL GAMES CONCERNS ABOUT BRIDGES LINKING THE CITY TO ILLINOIS HAVE ALSO DETERRED FANS IN FACT THOSE BRIDGES HAVEN'T BEEN AFFECTED BUT THE FLOODING HAS SHUT DOWN OTHER BRIDGES AND ROADS A MISSISSIPPI RIVER BRIDGE CONNECTING HANNIBAL TO ILLINOIS PROVIDING BY FAR THE SHORTEST ROUTE FROM CHICAGO HAS BEEN CLOSED KEEPING AWAY HUGE NUMBERS OF TOURISTS AS A RESULT SIX SHOPS IN HANNIBAL'S HISTORIC DISTRICT HAVE SHUT DOWN TEMPORARILY THE IRONY IS THAT A LEVEE ERECTED EARLIER THIS YEAR HAS KEPT THE TOWN BONE DRY DICK MCHARGUE OWNER OF THE MOLLY BROWN DINNER THEATER SAYS HE HAS ALREADY HAD TO CANCEL MANY SHOWS THIS SUMMER SOME ENTREPRENEURS ARE DETERMINED NOT TO LET THE FLOODS COME BETWEEN THEM AND THEIR BUSINESS THE OWNERS OF THE CASINO QUEEN A GAMBLING RIVERBOAT DOCKED AT EAST ST LOUIS ILL SAW THE BARGE THAT LED TO THEIR VESSEL SWAMPED SO THEY BUILT A FLOATING WALKWAY TO THEIR BOAT IT HASN'T BUDGED IN WEEKS BUT THE GAMBLERS HAVEN'T COMPLAINED THE SUMMER'S GREAT FLOODS MAY HAVE HUMBLED A FEW BUSINESSES THAT HAVE PROFITED FROM THE RIVERS A WATER PARK IN GRAFTON ILL THAT HAS EXPLOITED THE FURY OF THE NEARBY MISSISSIPPI RIVER IS NAMED RAGING RIVER BUT THE DELUGE HAS TEMPORARILY CLOSED THE PARK'S GATES SHOWING THAT THE RAGING RIVER WAS NO MATCH FOR THE REAL ONE 9307220043 930722 POLITICS & POLICY PROSECUTORS WANT DATA KEPT SECRET IN HOUSE INQUIRY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL PROSECUTORS INVESTIGATING WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI ASKED THE HOUSE LEADERSHIP NOT TO RELEASE STILLSECRET TESTIMONY FROM LAST YEAR'S TASK FORCE INQUIRY OF THE HOUSE POST OFFICE THE LETTER FROM J RAMSEY JOHNSON US ATTORNEY FOR THE DISTRICT OF COLUMBIA PROVOKED ANGRY PROTESTS FROM THE REPUBLICAN LEADERSHIP BUT THE PROSECUTOR SAID HE HAD SERIOUS CONCERN THAT RELEASING THE TRANSCRIPTS MIGHT HURT HIS INQUIRY INTO ALLEGATIONS OF EMBEZZLEMENT INVOLVING LAWMAKERS AND CASHFORSTAMPS TRANSACTIONS THE RELEASE OF SUCH MATERIALS COULD HAVE A SIGNIFICANT ADVERSE EFFECT ON THE ONGOING CRIMINAL INVESTIGATION BEING CONDUCTED BY THIS OFFICE INTO MATTERS ASSOCIATED WITH THE HOUSE POST OFFICE SAID MR JOHNSON ACCORDINGLY I ASK YOU NOT TO AUTHORIZE THE RELEASE OF SUCH MATERIALS FORMER POSTMASTER ROBERT ROTA PLEADED GUILTY THIS WEEK TO CHARGES GROWING OUT OF THE INVESTIGATION AND ACCOMPANYING COURT PAPERS IMPLICATED MR ROSTENKOWSKI A CHICAGO DEMOCRAT AS ONE OF TWO UNIDENTIFIED CONGRESSMEN ALLEGED TO HAVE RECEIVED THOUSANDS OF DOLLARS IN CASH FROM MR ROTA REPUBLICANS SEIZED ON THE REVELATIONS TO DEMAND A FULLER ACCOUNTING OF THE SCANDAL AND DESPITE MR JOHNSON'S REQUEST THE GOP LEADERSHIP SAID LAST NIGHT THAT IT WILL STILL PRESS TODAY FOR THE IMMEDIATE RELEASE OF THE TASK FORCE TRANSCRIPTS A CAREER PROSECUTOR BEFORE BEING NAMED TO THE US ATTORNEY'S POST THIS YEAR MR JOHNSON'S TASK IS BEING MADE MORE DIFFICULT BY WIDELY PUBLICIZED COMMENTS BY HIS PREDECESSOR REPUBLICAN JAY STEPHENS MR STEPHENS WHO IS RUNNING FOR THE US SENATE IN VIRGINIA HAS SUGGESTED THE CLINTON ADMINISTRATION IS SLOWING THE ROSTENKOWSKI INVESTIGATION UNTIL CONGRESS HAS COMPLETED NEGOTIATIONS ON THE TAX BILL TEXAS REP RICHARD ARMEY CHAIRMAN OF THE HOUSE GOP CAUCUS SAID YESTERDAY THAT MR ROSTENKOWSKI SHOULD STEP ASIDE FROM PRESIDING OVER THE NEGOTIATIONS IF IN FACT HE WAS AMONG THE CONGRESSMEN CITED IN THE COURT PAPERS THE BITTERNESS AMONG REPUBLICANS SURFACED WHEN A FRESHMAN REP JOHN LINDER OF GEORGIA SUGGESTED THE SCANDAL MAY YET LEAD TO SPEAKER THOMAS FOLEY'S BEDROOM THIS ALLUSION WAS TO THE FACT THAT MR FOLEY'S WIFE AND UNPAID AIDE HEATHER FOLEY WAS AMONG THOSE QUESTIONED BY THE TASK FORCE ABOUT HER KNOWLEDGE OF THE EARLY STAGES OF THE POST OFFICE INQUIRY AND THE GOP STRATEGY NOW APPEARS AIMED PARTLY AT EMBARRASSING THE HOUSE SPEAKER BY REFOCUSING ATTENTION ON THE CAPITOL POLICE'S COMPLAINTS OF OBSTRUCTION OF ITS INQUIRY WHICH MRS FOLEY DENIES THE PARTISAN MANEUVERING SPILLED ONTO THE FLOOR OF THE HOUSE LAST NIGHT PROVOKING A REBUKE FROM MAJORITY LEADER RICHARD GEPHARDT WHO DISMISSED SUGGESTIONS THAT THE LEADERSHIP HAD SOUGHT MR JOHNSON'S LETTER AS A MEANS TO BLUNT THE GOP PRESSURE I HEAR A LOT ABOUT LAW AND ORDER SAID THE MISSOURI DEMOCRAT THE BEST WAY TO REPRESENT LAW AND ORDER IS TO COOPERATE WITH LAW ENFORCEMENT OFFICERS 9307220042 930722 LAW LEGAL BEAT BREASTCANCER DIAGNOSIS SUITS ARE INCREASING BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL SPURRED BY EVIDENCE THAT EARLY DETECTION OF BREAST CANCER CAN SAVE LIVES AN INCREASING NUMBER OF WOMEN ARE SUING THEIR PHYSICIANS FOR FAILING TO DIAGNOSE THE DISEASE EARLY ENOUGH WOMEN ARE TURNING TO THE COURTS AS THEIR HEALTH DETERIORATES AND FAMILIES SOMETIMES ARE CONTINUING THE FIGHT AFTER A RELATIVE'S DEATH MOST OF THESE CASES ESCAPE PUBLIC NOTICE BECAUSE WOMEN TYPICALLY ARE IN A HURRY TO SETTLE AND PHYSICIANS WANT TO AVOID VISIBLE TRIALS BUT FOR BOTH SIDES THE STAKES ARE HIGH SETTLEMENTS RANGE FROM 50000 TO MORE THAN 2 MILLION IN THE PAST IT HAD BEEN VERY DIFFICULT FOR PATIENTS TO WIN CANCERMISDIAGNOSIS CASES IN LARGE PART BECAUSE DOCTORS COULD MAINTAIN THAT THE PATIENT WOULD HAVE DIED WITH OR WITHOUT AN EARLY DIAGNOSIS BUT LAWYERS WHO REPRESENT WOMEN IN BREASTCANCER SUITS SAY ADVANCES IN TREATMENT MAKE IT TOUGHER FOR DOCTORS TO MAKE THAT CASE AND AT THE VERY LEAST PLAINTIFFS CAN SHOW THAT DISFIGURING MASTECTOMIES CAN BE AVOIDED WHEN BREAST CANCER IS DETECTED IN ITS EARLY STAGES IN ADDITION THEY CAN PROVE IN SOME CASES THAT DOCTORS VIOLATED BREASTCANCERSCREENING GUIDELINES ENDORSED BY VARIOUS MEDICAL ORGANIZATIONS THE NATIONAL CANCER INSTITUTE SCREENING GUIDELINES FOR WOMEN OVER 40 CALL FOR YEARLY BREAST EXAMS AND MAMMOGRAMS AT LEAST EVERY TWO YEARS IF A DOCTOR DOESN'T FOLLOW THEM AND AS A RESULT BREAST CANCER IS NOT TIMELY DIAGNOSED WE HAVE A GOOD CASE FOR NEGLIGENCE SAYS HONOLULU ATTORNEY RICHARD TURBIN WHO HAS HANDLED ROUGHLY 10 SUCH CASES AND HAS ORGANIZED A PANEL ON THE SUBJECT SCHEDULED FOR THE ANNUAL MEETING OF THE AMERICAN BAR ASSOCIATION NEXT MONTH THE GUIDELINES RECENTLY PROVED HELPFUL TO MR TURBIN IN A CASE AGAINST UNITS OF KAISER PERMANENTE A BIG HEALTHMAINTENANCE ORGANIZATION BASED IN OAKLAND CALIF FOR FAILING TO DIAGNOSE BREAST CANCER IN HELEN ANN BEISER A CLINICAL PSYCHOLOGIST MS BEISER HAD PNEUMONIA BUT HAD ALSO COMPLAINED OF CHEST AND BREAST DISCOMFORT THAT SHE SAID FELT DIFFERENT FROM HER PNEUMONIA SYMPTOMS YET SHE WAS NOT GIVEN A CLINICAL BREAST EXAM BY HER KAISER DOCTORS TWO YEARS LATER SHE DISCOVERED A LUMP AND WAS DIAGNOSED WITH ADVANCED CANCER ACCORDING TO MR TURBIN LATE LAST YEAR AN ARBITRATION PANEL AWARDED MS BEISER 15 MILLION AND THE CASE WAS THEN SETTLED WITHOUT AN APPEAL MS BEISER WHO HAD A MODIFIED RADICAL MASTECTOMY DIED IN MAY WITHOUT THE GUIDELINES I WOULDN'T HAVE WON THE LAWSUIT MR TURBIN SAYS WILLIAM S HUNT THE HONOLULU LAWYER FOR KAISER SAYS THAT FOR DEFENDANTS BREASTCANCERMISDIAGNOSIS SUITS ARE VERY DIFFICULT MS BEISER HE NOTES WAS A VERY SYMPATHETIC PLAINTIFF SHE WAS 45 YEARS OLD AND SHE WAS GOING TO DIE STILL HE SAYS HE WAS SURPRISED AT THE SIZE OF THE AWARD BECAUSE SHE KNEW AS WELL AS THE DOCTORS THAT SHE WAS SUPPOSED TO GET BREAST EXAMS MR TURBIN AND OTHER LAWYERS SAY BREASTCANCER LITIGATION HAS BEEN FUELED NOT ONLY BY MEDICAL DEVELOPMENTS BUT ALSO BY THE WOMEN'S MOVEMENT AND NEW ATTENTION BEING PAID TO WOMEN'S HEALTH ISSUES MEN ALSO GET BREAST CANCER AND PARTICULARLY BECAUSE IT HAPPENS SO RARELY THE DISEASE IS SOMETIMES MISDIAGNOSED IN A CASE THAT WILL BE TRIED THIS FALL A 49YEAROLD MALE ACCOUNTANT FROM NEW YORK STATE IS CLAIMING THAT HIS BREAST CANCER WAS MISDIAGNOSED BY A DOCTOR MANY DIAGNOSIS CASES HINGE ON WHETHER A DOCTOR SHOULD HAVE BEEN MORE VIGILANT IN INVESTIGATING A BREAST LUMP JEFFREY B BLOOM WHOSE FIRM IS HANDLING ABOUT 15 BREASTCANCERDIAGNOSIS CASES SAYS HE RECENTLY SETTLED A CASE ON BEHALF OF A 38YEAROLD WOMAN WHO WAS UNDER THE CARE OF A BREAST SURGEON BECAUSE OF A FAMILY HISTORY OF BREAST CANCER THE WOMAN DEVELOPED A LUMP BUT HAD TWO NEGATIVE MAMMOGRAMS ALMOST THREE YEARS AFTER THE DISCOVERY OF THE LUMP THE DOCTOR DID A NEEDLE BIOPSY THAT SHOWED A MALIGNANCY MR BLOOM ARGUED THAT THE BIOPSY SHOULD HAVE BEEN DONE MUCH EARLIER AND SETTLED THE CASE FOR MORE THAN 600000 YOU CANNOT SAY THAT MAMMOGRAPHY IS THE ENDALL HE SAYS PROVING THAT A LUMP WAS INVESTIGATED EXPEDITIOUSLY IS OFTEN THE LINCHPIN OF A DOCTOR'S DEFENSE A SIXWEEK DELAY IN DISCOVERING BREAST CANCER IS NOT USUALLY SIGNIFICANT SAYS BRUCE G HABIAN A NEW YORK DEFENSE LAWYER BUT IF A DOCTOR DOESN'T FIND CANCER FOR SIX MONTHS HE CAN BE NAILED ON THAT SAYS MR HABIAN AND A DOCTOR'S RECORD KEEPING CAN MAKE OR BREAK A CASE BECAUSE WHEN A WOMAN FIRST REPORTED HER SYMPTOMS OFTEN IS DISPUTED THE CASES CAN COME DOWN TO WHO DO YOU BELIEVE MR HABIAN SAYS INCREASINGLY THE CASES ARE ALSO BECOMING BATTLES BETWEEN EXPERTS BECAUSE THE SCIENTIFIC UNDERSTANDING OF THE DISEASE KEEPS CHANGING IN 1985 KAISER PERMANENTE SETTLED A MISDIAGNOSIS CASE FILED BY BARBARA ROSENBLUM A BAY AREA SOCIOLOGIST FOR ABOUT 450000 THE CASE INVOLVED ALLEGATIONS THAT HER MAMMOGRAM WAS MISREAD AND THAT HER BREAST LUMP WAS NOT SUFFICIENTLY INVESTIGATED MS ROSENBLUM DIED IN 1988 MILTON COOPER A LAWYER FOR KAISER SAYS THAT THESE DAYS THE COMPANY MIGHT NOT HAVE SETTLED BECAUSE THERE ARE MORE TOOLS AVAILABLE TO ANALYZE THE NATURE OF THE CANCER DEFENSE LAWYERS ARE INCREASINGLY TURNING TO A BATTERY OF MEDICAL EXPERTS TO LOOK AT EVERYTHING FROM A WOMAN'S GENETIC ARCHITECTURE TO THE SOCALLED DOUBLING TIME OF THE CANCER IF THE CANCER IS FOUND TO BE ESPECIALLY VIRULENT DEFENSE LAWYERS CAN ARGUE SAYS MR COOPER THAT EVEN THOUGH THERE WAS A DEVIATION OF THE STANDARD OF CARE THAT MISREADING DIDN'T CAUSE ANY LESSENED LIFE EXPECTANCY SHAREHOLDERS' LAWYER MELVYN I WEISS IS USED TO SPARRING WITH CORPORATE LAWYERS BUT HE FACED A PARTICULARLY TOUGH ADVERSARY WHEN HE TANGLED WITH SEN PETE DOMENICI AT A SENATE BANKING COMMITTEE HEARING IN THE END MR WEISS AGREED TO TURN OVER SOME OF HIS LAW FIRM'S FINANCIAL DATA THE WELLKNOWN NEW YORK LITIGATOR AND THE NEW MEXICO REPUBLICAN TRADED ORAL JABS ABOUT FRIVOLOUS LAWSUITS DURING THE HEARING ON ACCOUNTANTS' LIABILITY IN SHAREHOLDERS' CASES YESTERDAY A SOMEWHAT STUNNED MR WEISS A PARTNER IN 85LAWYER MILBERG WEISS BERSHAD HYNES & LERACH AGREED AT THE SENATOR'S INSISTENCE TO PROVIDE HIM WITH A LIST OF THE SECURITIESFRAUD SUITS FILED BY THE FIRM IN THE PAST THREE YEARS PLUS THE AMOUNT OF DAMAGES SOUGHT THE AMOUNT OF THE SETTLEMENT AND THE AMOUNT OF FEES COLLECTED BY THE FIRM IN EACH CASE IF IT APPEARS THE ONLY PEOPLE MAKING MONEY ON THESE SUITS ARE THE LAWYERS AND NOT THE PLAINTIFFS THEN WE MAY HAVE SOMETHING TO SAY A SPOKESMAN FOR SEN DOMENICI SAID THE SENATOR IS VERY INTERESTED IN HOW THE MONEY IS ALLOCATED CONVICTION UPHELD THE US SECOND CIRCUIT COURT OF APPEALS UPHELD THE CONVICTION OF PATRICIA OSTRANDER A FORMER FIDELITY INVESTMENTS FUND MANAGER WHO WAS SENTENCED TO TWO MONTHS IN PRISON FOR ACCEPTING AN ILLEGAL GRATUITY FROM MICHAEL MILKEN IN RETURN FOR HER STEERING BUSINESS TO DREXEL BURNHAM LAMBERT INC MS OSTRANDER ARGUED THAT THE MERE OPPORTUNITY TO INVEST IN WARRANTS ISSUED DURING AN UNDERWRITING ARRANGED BY DREXEL WAS NOT A THING OF VALUE AND THEREFORE COULDN'T BE AN ILLEGAL GRATUITY BUT THE APPEALS COURT REJECTED THAT VIEW RULING THAT WHEN MS OSTRANDER ACCEPTED MR MILKEN'S OFFER TO BUY THE WARRANTS AN OFFER MADE TO ONLY A LIMITED GROUP OF PEOPLE SHE BROKE A LAW THAT PROHIBITS FUND MANAGERS FROM ACCEPTING GRATUITIES NOTED HARRY J WEISS A PARTNER IN WASHINGTON DC LAW FIRM ARNOLD & PORTER RESIGNED TO BECOME SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF PAINEWEBBER INC A SUBSIDIARY OF PAINEWEBBER GROUP INC NEW YORK MR WEISS REPLACES ROBERT M BERSON WHO IS ENTERING PRIVATE PRACTICE AND WILL WORK WITH PAINEWEBBER AS AN OUTSIDE COUNSEL ALSO JOINING PAINEWEBBER INC AS SENIOR VICE PRESIDENT AND DEPUTY GENERAL COUNSEL IS HOWARD A BARTNICK WHO WAS COMPLIANCE DIRECTOR AT THE NEW YORKBASED PRUDENTIAL SECURITIES INC UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA CHRISTI HARLAN CONTRIBUTED TO THIS ARTICLE 9307220041 930722 REVIEW & OUTLOOK EDITORIAL A WASHINGTON DEATH THE DEATH BY GUNSHOT WOUND TUESDAY OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER IS AN EVENT BOTH SAD AND TROUBLING MR FOSTER'S BODY WAS DISCOVERED TUESDAY AT FORT MARCY A CIVIL WAR ERA FORT IN VIRGINIA THAT OVERLOOKS THE POTOMAC RIVER US PARK POLICE SAID YESTERDAY THAT MR FOSTER WAS FOUND ABOUT 200 YARDS FROM HIS CAR SLUMPED AGAINST A CANNON WITH A GUN IN HIS HAND MR FOSTER 48 LEFT A WIFE AND THREE CHILDREN ONE CAN ONLY GRIEVE FOR THEM AND FOR HIS FRIENDS IN THE WHITE HOUSE AND ELSEWHERE WHILE THE CAUSE OF DEATH HAD NOT BEEN CONCLUSIVELY ESTABLISHED AS OF YESTERDAY THE PARK SERVICE WAS PRESUMING IT A SUICIDE BY GUNSHOT WOUND TO THE HEAD THOUGH IT WOULD NOT SAY WHETHER A NOTE WAS FOUND SUICIDES ARE A SPECIAL SORT OF PERSONAL TRAGEDY BUT PERHAPS MORE SO IN PUBLIC LIFE THE RESPONSIBILITIES OF A HIGH PUBLIC OFFICIAL ARE ENORMOUS AND OF COURSE THEIR ACTIVITIES ARE ALWAYS SUBJECT TO THE SCRUTINY AND CRITICISM OF POLITICAL FOES THE PUBLIC THE PRESS AND SOMETIMES EVEN THEIR OWN ALLIES THE CUMULATIVE PRESSURE OF THOSE RESPONSIBILITIES AND THE ATTENTION MAY NOT ALWAYS BE APPARENT ON THE SURFACE AS READERS OF THIS PAGE ARE AWARE WE HAVE DEVOTED CONSIDERABLE SPACE TO INQUIRING AFTER THE PRECISE NATURE OF THE ACTIVITIES OF THE FOUR ROSE LAW FIRM PARTNERS FROM LITTLE ROCK WORKING IN THE CLINTON ADMINISTRATION MR FOSTER WEBSTER HUBBELL WILLIAM KENNEDY III AND OF COURSE FIRST LADY HILLARY CLINTON WE THINK THESE ISSUES ARE ENTIRELY APPROPRIATE AND PRESUME THERE WILL BE OCCASION TO RETURN TO THEM IN THE FUTURE ALL AMERICANS HAVE A LEGITIMATE INTEREST IN THE INNER WORKINGS OF AN ADMINISTRATION GOVERNING THEM IF ANYTHING MR FOSTER'S TRAGIC DEATH ADDS TO THE CURIOSITY THOSE WHO KNEW HIM CONSIDER HIM AN UNLIKELY SUICIDE WE'RE TOLD HE HAD NO HISTORY OF DEPRESSION HIS LEGAL SPECIALTY WAS LITIGATION WHICH IS TO SAY HE WAS SCARCELY A STRANGER TO STRESS HE SEEMED DEVOTED TO HIS CHILDREN AND WAS AFTER ALL AT THE PINNACLE OF NEARLY ANY CAREER AS OF YESTERDAY NO ONE WAS ABLE TO OFFER A PERSUASIVE REASON WHY HE WOULD HAVE TAKEN HIS OWN LIFE THE DEATH BY GUNSHOT OF A HIGH WHITE HOUSE OFFICIAL UNDER MYSTERIOUS CIRCUMSTANCES IS BOUND TO BE TROUBLING MR FOSTER WAS THE NUMBER 2 LAWYER ASSOCIATED WITH THE OVAL OFFICE JUST BEHIND CHIEF WHITE HOUSE COUNSEL BERNARD NUSSBAUM AND AS A PART OF THE CLINTON INNER CIRCLE WAS FAR MORE IMPORTANT THAN EVEN HIS TITLE INDICATED APPEARING IN THE ROSE GARDEN AROUND MIDDAY PRESIDENT CLINTON SAID THERE IS REALLY NO WAY TO KNOW WHY THESE THINGS HAPPEN THE PRESIDENT ADDED WE'LL JUST HAVE TO LIVE WITH SOMETHING ELSE WE CAN'T UNDERSTAND THE PRESIDENT HAD KNOWN MR FOSTER SINCE KINDERGARTEN IN HOPE OF COURSE AND ON A HUMAN LEVEL THIS REACTION WAS ENTIRELY APPROPRIATE LATER IN THE DAY HOWEVER THE WHITE HOUSE ANNOUNCED THAT THE JUSTICE DEPARTMENT WILL NONETHELESS INVESTIGATE UNDER THE DIRECTION OF ATTORNEY GENERAL JANET RENO AND DEPUTY ATTORNEY GENERAL PHILIP HEYMANN THAT INVESTIGATION IS IMPORTANT AND NECESSARY WE HOPE IT IS THOROUGH AND CONVINCING THERE IS LIKELY TO BE A PROBLEM COORDINATING THE FBI NOW IN A LEADERSHIP TRANSITION THE PARK POLICE LOCAL AUTHORITIES IN VIRGINIA AND SO ON A DIRECT APPOINTMENT SUCH AS SPECIAL COUNSEL WITHIN JUSTICE WOULD MAKE CLEAR WHO IS IN CHARGE AND DIRECTLY RESPONSIBLE WE HAD OUR DISAGREEMENTS WITH MR FOSTER DURING HIS SHORT TERM IN WASHINGTON BUT WE DO NOT THINK THAT IN DEATH HE DESERVES TO DISAPPEAR INTO A CLOUD OF MYSTERY THAT WE ARE SOMEHOW ORDAINED NEVER TO UNDERSTAND THE AMERICAN PUBLIC IS ENTITLED TO KNOW IF MR FOSTER'S DEATH WAS SOMEHOW CONNECTED TO HIS HIGH OFFICE IF HE WAS DRIVEN TO TAKE HIS LIFE BY PURELY PERSONAL DESPAIR A SERIOUS INVESTIGATION SHOULD SHARE THIS CONCLUSION SO THAT HE CAN BE APPROPRIATELY MOURNED 9307220040 930722 BANKS TRY TO AVOID RULES ON DERIVATIVES BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BANKERS MADE PUBLIC FOR THE FIRST TIME THEIR CAMPAIGN TO HEAD OFF GOVERNMENT CONTROLS ON THE ARCANE BUT LUCRATIVE BUSINESS OF TRADING DERIVATIVE SECURITIES THE BANKERS ACKNOWLEDGE SHORTCOMINGS IN CURRENT METHODS OF MANAGING AND DISCLOSING THE RISKS OF DERIVATIVES BUT ARGUE FOR A SET OF STANDARD PRACTICES THAT WOULD ALLOW MAJOR PLAYERS IN THIS MORE THAN 6 TRILLION GLOBAL MARKET TO POLICE THEMSELVES THESE VIEWS ARE INCLUDED IN A STUDY RELEASED BY THE GROUP OF THIRTY A WASHINGTONBASED THINK TANK OF INTERNATIONAL BANKERS AND FORMER GOVERNMENT OFFICIALS THE REPORT OFFERS 20 RECOMMENDATIONS TO DEALERS AND THEIR CLIENTS IN HOPES OF IMPROVING INDUSTRY PRACTICES TO FEND OFF REGULATION THESE INCLUDE STRENGTHENING THE ROLE OF SENIOR MANAGEMENT PROVIDING ADDITIONAL DISCLOSURE AND IMPLEMENTING MORE RIGOROUS ACCOUNTING TECHNIQUES FOR DERIVATIVES THEY ALSO CALLED ON REGULATORS TO SUPPORT NETTING AGREEMENTS WHICH ALLOW A DEALER TO OFFSET RISKS IN DIFFERENT DERIVATIVES POSITIONS WITH THE SAME CUSTOMER AND MORE UNIFORM INTERNATIONAL ACCOUNTING STANDARDS DERIVATIVES ARE FINANCIAL CONTRACTS WHOSE VALUES DERIVE AS THEIR NAME IMPLIES FROM SOME UNDERLYING ASSET SUCH AS STOCKS BONDS CURRENCIES OR COMMODITIES FOR EXAMPLE ONE COMMON DERIVATIVE IS A FORWARD CONTRACT WHICH COMMITS A BUYER TO PURCHASE A GIVEN ASSET SUCH AS 20 MILLION OF MARKS AT A PRESET PRICE AT SOME FUTURE DATE DERIVATIVES CAN BE USED TO HELP CORPORATIONS AND FINANCIAL INSTITUTIONS MANAGE THEIR EXPOSURE TO FLUCTUATIONS IN MARKETS REGULATORS GENERALLY WELCOMED THE BANKING INDUSTRY'S RESOLVE TO BECOME MORE RESPONSIBLE IN MANAGING ITS DERIVATIVES RISK IT'S AN IMPORTANT CONTRIBUTION TO THE EVOLVING ANALYSIS OF THIS MARKET SAID DAVID MULLINS VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD A LEADING MEMBER OF THE FED'S WORKING GROUP ON DERIVATIVES WITH REGARD TO HANDLING THE RISKS HE WARNED IF THE INDUSTRY DOESN'T DO IT WELL OTHERS MIGHT DO IT LESS WELL FED OFFICIALS HAVE BEEN SOUNDING ALARMS ABOUT THE SHARP INCREASES IN DERIVATIVES USE WHILE SOME TYPES OF DERIVATIVES ARE LISTED ON EXCHANGES OR TRADE AS ORDINARY SECURITIES THE GROUP OF THIRTY STUDY DEALS ONLY WITH CUSTOMIZED OVERTHECOUNTER DERIVATIVES THAT ARE TRADED PRIVATELY AMONG BANKS AND THEIR LARGE CUSTOMERS MAINLY CORPORATIONS AND BIG INSTITUTIONS THIS BOOMING LARGELY UNREGULATED MARKET FOR CUSTOMIZED DERIVATIVE CONTRACTS HAS RAISED CONCERNS AMONG REGULATORS OVER THE POTENTIAL RISKS IT POSES FOR THE WORLD'S FINANCIAL MARKETS HEADED BY DENNIS WEATHERSTONE CHAIRMAN OF JP MORGAN & CO THE BANKING GROUP'S STUDY CULMINATES AN 18MONTH DIALOGUE BETWEEN BANKS AND THEIR OVERSEERS ON HOW TO RESPOND TO THOSE RISKS ONE OF THE FOCUSES OF THE STUDY IS TO DEMYSTIFY THE SUBJECT OF DERIVATIVES MR WEATHERSTONE SAID IN AN INTERVIEW WE'RE NOT SAYING EVERYTHING IS FINE EVERYWHERE HE ADDED IF IT WERE WE WOULDN'T HAVE ANY RECOMMENDATIONS AT ALL MR WEATHERSTONE ALSO HELD A RARE PRESS CONFERENCE IN LONDON TO PROMOTE THE STUDY TOGETHER WITH SUCH BANK EXECUTIVES AS RANIER GUT CHAIRMAN OF CS HOLDINGS AND PETER MIDDLETON DEPUTY CHAIRMAN OF BARCLAYS BANK OF COURSE THE GROUP OF THIRTY STUDY HAS NO REAL TEETH EXCEPT MORAL SUASION THE EXTENT TO WHICH BANKS AND SECURITIES FIRMS AROUND THE WORLD IMPLEMENT THE 20 RECOMMENDATIONS WILL LARGELY DETERMINE THE SCOPE OF ADDITIONAL REGULATION THE STUDY SHOWS THAT DERIVATIVES DEALERS THEMSELVES ARE CONCERNED ABOUT RECORDKEEPING AND FINANCIAL DISCLOSURE OF THE RISKS IN THESE INSTRUMENTS THE STUDY CITES SENIOR MANAGERS' CONCERNS THAT THEY DON'T KNOW ENOUGH ABOUT DERIVATIVES THEMSELVES AND MIGHT BE OVERRELIANT ON A FEW SPECIALISTS THE STANDARDS PROPOSED IN THE STUDY TEND TO BE HIGHER THAN THOSE ACTUALLY BEING USED BY DEALERS AND THEIR CUSTOMERS FOR INSTANCE THE STUDY CALLS ON DEALERS TO VALUE DERIVATIVES WITH ALLOWANCES MADE FOR SUCH THINGS AS DEALER AND HOLDER CREDIT RISK AND THE COST OF ADMINISTERING CURRENT POSITIONS THE SURVEY SHOWS NO SET INDUSTRY STANDARD CONCERNING WHICH ADJUSTMENTS TO USE IF ANY THE STUDY SAYS ELSEWHERE THE STUDY URGES DEALERS TO IDENTIFY AND DISCLOSE THEIR SOURCES OF REVENUE IN TRADING DERIVATIVES THE PURPOSE IS TO DEVELOP A MORE REFINED UNDERSTANDING OF THE RISKS AND RETURNS OF THOSE ACTIVITIES A PRACTICE IT SAYS FEW DEALERS NOW FOLLOW YOU CAN'T ANALYZE A 500 MILLION LUMP SAYS GEORGE SALEM A BANKING ANALYST AT PRUDENTIAL SECURITIES INC REFERRING TO HUGE AGGREGATE TRADING REVENUES REPORTED BY CITICORP AND JP MORGAN IN THIS YEAR'S SECOND QUARTER THE REPORT'S RECOMMENDATIONS WILL BE COSTLY TO IMPLEMENT WHICH LEADS TO A CENTRAL QUESTION OF HOW MANY FIRMS CURRENTLY EMPLOY THE RECOMMENDATIONS SAYS THE FED'S MR MULLINS THE SURVEY SUGGESTS A MIXED PICTURE ON THIS SCORE ONE AREA THE STUDY BARELY ADDRESSED IS SYSTEMIC RISK WHICH REFERS TO THE POSSIBILITY THAT THE FAILURE OF A MAJOR DERIVATIVES DEALER COULD SERIOUSLY DISRUPT FINANCIAL MARKETS WORLDWIDE THAT RISK IS PRESENT BECAUSE DERIVATIVES SPAN MANY MARKETS AND NATIONAL BOUNDERIES CHALLENGING REGULATORS' ABILITY TO CONTAIN THE REPERCUSSIONS HOWEVER MR MULLINS NOTES THAT SOUND RISK MANAGEMENT IS A KEY INGREDIENT IN REDUCING SYSTEMIC RISK BY AND LARGE THE STUDY AVOIDED EXPLICITLY CRITICIZING INCREASED INVOLVEMENT BY REGULATORS THE AUTHORS OF THE STUDY DELIBERATELY INTRUDED LITTLE ON THE DOMAIN OF REGULATORS WROTE PAUL VOLCKER FORMER FED CHAIRMAN IN INTRODUCING THE STUDY THIS IS PERHAPS MOST APPARENT IN THE VIRTUAL ABSENCE OF COMMENT ABOUT THE APPROPRIATE LEVEL OF CAPITAL REQUIREMENTS TO BACK BANKS' DERIVATIVES ACTIVITIES AN ISSUE CURRENTLY UNDER REGULATORY REVIEW HE WROTE THREE MONTHS AGO THE BANK FOR INTERNATIONAL SETTLEMENTS IN BASEL SWITZERLAND WHICH SETS UNIFORM STANDARDS FOR INTERNATIONAL BANKS PROPOSED THAT INTERNATIONAL BANKS SET ASIDE ADDITIONAL CAPITAL WHEN THEY ASSUME MARKET RISKS INCLUDING THROUGH DERIVATIVES ACTIVITY IN ANY CASE THIS STUDY ISN'T THE LAST WORD ON THESE ISSUES IT'S NEITHER THE BEGINNING NOR THE END OF THE DEBATE SAID BRANDON BECKER DEPUTY DIRECTOR OF THE DIVISION OF MARKET REGULATION AT THE SECURITIES AND EXCHANGE COMMISSION IT'S A DEBATE THAT WILL CONTINUE GOING FORWARD GLENN WHITNEY CONTRIBUTED TO THIS ARTICLE EXPOSURE TO DERIVATIVES BY LEAD BANKS OF 50 LARGEST BANK HOLDING COMPANIES TABLE SHOWS FACE VALUE OF INVESTMENTS UNDERLYING DERIVATIVES AND THE REPLACEMENT COST OR POTENTIAL LOSS IF THE OTHER PARTIES TO THESE VARIOUS TRADES WERE TO DEFAULT 9307220038 930722 COCACOLA BRINGS BACK SERGIO ZYMAN A PRODUCT INNOVATOR AS MARKETING CHIEF BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO IS BRINGING BACK SERGIO ZYMAN THE BOLD AND CONTROVERSIAL MARKETING EXECUTIVE WHO LEFT UNDER A CLOUD SHORTLY AFTER THE NEW COKE FIASCO TO ONCE AGAIN HEAD UP ITS MARKETING EFFORTS THE MOVE SIGNALS THAT COCACOLA WHICH HAS BEEN TRYING TO SHAKE UP THE SLUGGISH COLA AND DIET SOFTDRINK MARKETS INTENDS TO GET MORE AGGRESSIVE IN THE AREA OF ADVERTISING AND NEWPRODUCT DEVELOPMENT WHEN LAST AT COKE MR ZYMAN WAS INSTRUMENTAL IN SOME OF THE COMPANY'S BIGGEST NEWPRODUCT INTRODUCTIONS EVER INCLUDING DIET COKE ONE OF ITS MOST SUCCESSFUL AND NEW COKE ONE OF ITS BIGGEST BLUNDERS SINCE LEAVING THE COMPANY MR ZYMAN HAS CONTINUED AS A COKE CONSULTANT THE 47YEAROLD MR ZYMAN RETURNS TO THE COMPANY AS CHIEF MARKETING OFFICER HE SUCCEEDS PETER SEALEY WHO RESIGNED AFTER NEARLY THREE YEARS WITH THE COMPANY COCACOLA SAID MR SEALEY IS OPENING A MARKETING CONSULTING BUSINESS IN ATLANTA AND THE SAN FRANCISCO BAY AREA THE APPOINTMENT SURPRISED MANY INSIDE AND OUTSIDE THE COMPANY MR ZYMAN WHO WON THE NICKNAME AYACOLA HAS A REPUTATION FOR BEING SOMETIMES OVERLY AGGRESSIVE AT THE TIME OF HIS DEPARTURE FROM COKE IN 1986 MR ZYMAN HIMSELF SAID A LOT OF PEOPLE WILL TELL YOU THAT I'M CONTROVERSIAL TO THIS DAY SOME PEOPLE BELIEVE HE WAS FORCED OUT THOUGH HE AND THE COMPANY DENIED IT BECAUSE HIS ABRASIVE STYLE IRRITATED COKE BOTTLERS SPECULATION LINGERS THAT HE WAS IN SOME WAY A FALL GUY FOR NEW COKE MR ZYMAN WAS ONE OF A SMALL GROUP OF COCACOLA EXECUTIVES INVOLVED IN THE NEW COKE FIASCO MR ZYMAN COULDN'T BE REACHED FOR COMMENT BUT THE APPOINTMENT OF MR ZYMAN CAPS MONTHS OF FRUSTRATION ON THE PART OF M DOUGLAS IVESTER COCACOLA'S EXECUTIVE VICE PRESIDENT MR IVESTER IS IN CHARGE OF COKE'S CORE US BUSINESS AND IS A CONTENDER TO SUCCEED CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERTO C GOIZUETA WHO IS SCHEDULED TO RETIRE IN FOUR YEARS BUT DURING MOST OF MR IVESTER'S SHORT TENURE US SOFTDRINK INDUSTRY GROWTH HAS REMAINED SLOW AND GROWTH IN DIET COLAS THE MAIN ENGINE DRIVING SALES IN THE 1980S SLIPPED LAST YEAR FOR THE FIRST TIME ALL THE WHILE PEOPLE FAMILIAR WITH COKE'S MARKETING SAY MR IVESTER AND MR SEALEY HAD BIG DIFFERENCES OVER HOW TO FIX THINGS NEITHER MR SEALEY NOR MR IVESTER WAS AVAILABLE TO COMMENT ONE FACTOR PROPELLING THE MANAGEMENT CHANGE WAS COKE'S OWN DISSATISFACTION WITH THE NEW DIET COKE CAMPAIGN WHICH DUMPED THE 11YEAROLD WIDELY POPULAR SLOGAN JUST FOR THE TASTE OF IT THAT HAD BEEN THE BRAND'S ONLY CAMPAIGN SINCE ITS DEBUT BUT ONE OF MR SEALEY'S FIRST BIG MARKS ON THE COMPANY WAS TO CHANGE THE SLOGAN TO TASTE IT ALL THE NEW CAMPAIGN WHICH MADE ITS DEBUT ABOUT SEVEN MONTHS AGO HAS BEEN CRITICIZED FOR HAVING A NARROW YUPPIELIKE APPEAL AND HAS GENERATED MUCH INTERNAL DEBATE AT COKE ABOUT ITS EFFECTIVENESS AND NOW THE COMPANY AND ITS AD AGENCY LINTASNEW YORK ARE REVIEWING WAYS TO REPAIR IT NOT HELPING MR SEALEY'S CAUSE AT COKE WAS THE FACT THAT HIS TWO BIG MENTORS HAD RETIRED IN LATE 1990 MR SEALEY WAS RECRUITED BY IRA C HERBERT THE FORMER TOP MARKETING OFFICIAL AND BY RECENTLY RETIRED COKE PRESIDENT DONALD R KEOUGH THE THREE HAD WORKED TOGETHER OVER THE YEARS AS MR SEALEY ASCENDED INTO NUMEROUS MARKETING POSITIONS INCLUDING PRESIDENT OF MARKETING AND DISTRIBUTION FOR COLUMBIA PICTURES WHICH COKE FORMERLY OWNED IN HIS LATEST STINT AT COKE MR SEALEY WORKED WITH MICHAEL OVITZ THE HOLLYWOOD SUPERAGENT WHOSE CREATIVE ARTISTS AGENCY PRODUCED THE BULK OF THE NEW ALWAYS COCACOLA CAMPAIGN FOR COCACOLA CLASSIC CAA STUNNED MADISON AVENUE BY SNAGGING CREATIVE WORK THAT HAD BEEN HANDLED FOR DECADES BY MCCANNERICKSON COKE SAID IT HAS BEEN SATISFIED WITH THE WORK OF CAA WHICH IS SCHEDULED TO PRESENT A NEW SLATE OF SPOTS FOR COKE'S 1994 CAMPAIGN IN ATLANTA TODAY IN A STATEMENT MR IVESTER SAID THAT MR SEALEY WAS BROUGHT IN THREE YEARS AGO SPECIFICALLY TO TAKE OUR ADVERTISING TO A NEW LEVEL OF EXCELLENCE HE HAS DONE THAT NOW COKE IS HOPING THAT MR ZYMAN'S TALENTS AS AN INNOVATOR BOTH WITH NEW AND EXISTING PRODUCTS CAN HELP FIX SOME TROUBLING SOFTDRINK TRENDS DIET COKE GREATLY BOLSTERED A FLAGGING SOFTDRINK MARKET AFTER ITS INTRODUCTION IN 1982 MR ZYMAN WAS ALSO INSTRUMENTAL IN THE DEVELOPMENT OF CHERRY COKE AND MINUTE MAID ORANGE SODAS BOTH OF WHICH BECAME MAJOR BRANDS AND ALSO HELPED STIR UP SALES NOW WITH CONSUMERS SHOWING LESS INTEREST IN COLAS MR ZYMAN WILL HAVE TO TACKLE THE TWIN TASKS OF BOOSTING LOYALTY TO COCACOLA WHILE OFFERING ATTRACTIVE ALTERNATIVES TO NONCOLA DRINKERS COKE HAS MADE SOME INROADS IN THE SECOND QUARTER ITS SALES VOLUME JUMPED 6 IN THE US FUELED BY NEW PRODUCTS AND STRONGER FOUNTAIN SALES BUT SO FAR COKE HASN'T BEEN ABLE TO COME UP WITH ANY NEW BLOCKBUSTER PRODUCTS THAT EITHER REJUVENATE ITS CORE BUSINESS OR SUBSTANTIALLY BOOST ITS SALES IN ITS NONCOLA LINES 9307220037 930722 INTERNATIONAL BRITISH AIRWAYS HAS FRANCHISESTYLE DEAL WITH SMALL CARRIER LONDON TINY INDEPENDENT CITYFLYER EXPRESS AIRLINE OF THE UK WILL START FLYING UNDER THE BRITISH AIRWAYS NAME IN A FRANCHISESTYLE FORMULA GAINING IN POPULARITY AMONG EUROPE'S AIRLINES CITYFLYER AT LONDON'S GATWICK AIRPORT WILL FLY ITS FLEET OF SIX TURBOPROP PLANES UNDER THE NAME BRITISH AIRWAYS EXPRESS WITH INTERIORS AND STAFF UNIFORMS MATCHING THOSE OF THE UK'S NO 1 AIRLINE BUT IN A TWIST ON THE NORMAL RELATIONSHIP BETWEEN A MAJOR EUROPEAN AIRLINE AND A REGIONAL CARRIER CITYFLYER WILL PAY BRITISH AIRWAYS PLC FOR THE USE OF ITS NAME AND A FEE BASED ON THE MEASURED BENEFIT TO CITYFLYER OF THE ARRANGEMENT BRITISH AIRWAYS WILL NOT TAKE AN EQUITY STAKE IN THE SMALLER AIRLINE INDUSTRY ANALYSTS AND CONSULTANTS SAID MAJOR EUROPEAN AIRLINES ARE ONLY NOW STARTING TO FORGE SUCH ARRANGEMENTS WITH REGIONAL CARRIERS THEY DON'T OWN OR CONTROL IN THE US SMALLER INDEPENDENT CARRIERS HAVE LONG USED THE BRAND NAME OF MAJOR AIRLINES FOR WHOM THEY FEED AND DISTRIBUTE PASSENGERS BUT THE PROGRESSIVE DEREGULATION OF EUROPE'S AIR TRANSPORT INDUSTRY HOWEVER HAS AIRLINES LOOKING FOR NEW WAYS TO EXPAND SERVICE AT THE LOWEST POSSIBLE COST BRITISH AIRWAYS AND CITYFLYER DIDN'T DISCLOSE THE AMOUNT OF THE FEE THE SMALLER AIRLINE WILL PAY BUT AVIATION INDUSTRY ANALYSTS SAID THE SIZE OF THE FEES ARE PROBABLY INSIGNIFICANT WITH BOTH AIRLINES HOPING TO BENEFIT FROM A BOOST IN PASSENGER TRAFFIC BECAUSE OF POOLED EFFORTS FOR BRITISH AIRWAYS THE DEAL ADDS TO THE NETWORK OF FLIGHTS FEEDING AND DISTRIBUTING PASSENGERS FROM ITS OWN ROUTES CITYFLYER MEANWHILE SHOULD SEE A DIRECT BENEFIT FROM THE DEAL AS BRITISH AIRWAYS BEGINS USING ITS POWERFUL MARKETING DEPARTMENT TO FILL UP THE SMALL AIRCRAFT 9307220036 930722 BUSINESS BRIEFS AMERICAN EXPRESS CENTURION BANK NEWARK DEL A UNIT OF AMERICAN EXPRESS CO WILL MOVE ITS HEADQUARTERS TO WILMINGTON DEL SOCIETY CORP REACHED AN AGREEMENT TO BUY SCHAENEN WOOD & ASSOCIATES NEW YORK TERMS WEREN'T DISCLOSED ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC SPRINGDALE ARK HAS BEEN GRANTED TWO NEW PATENTS BY THE US PATENT OFFICE COVERING ELEMENTS OF ITS CONSUMER FILM RECYCLING TECHNOLOGIES INLAND STEEL INDUSTRIES INC CHICAGO SAID WORKERS APPROVED A SIXYEAR CONTRACT WITH THE UNITED STEEL WORKERS REACHED IN MAY SERVICE CORP INTERNATIONAL HOUSTON HAS BEEN GRANTED PERMISSION TO ACQUIRE PINE GROVE FUNERAL GROUP OF AUSTRALIA BY THE FOREIGN INVESTMENT REVIEW BOARD THE TRANSACTION IS EXPECTED TO CLOSE BY AUG 31 9307220035 930722 COMPAQ PROFIT REVENUE SOARED IN 2ND QUARTER RESULTS DEFIED INDUSTRY'S SLUMP AS PC PRODUCER'S NET MORE THAN TRIPLED BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP DEFYING A RECENT PERSONALCOMPUTER INDUSTRY SLUMP SAID ITS NET INCOME MORE THAN TRIPLED IN THE SECOND QUARTER ON RECORD REVENUE THE HOUSTONBASED PC MAKER REPORTED NET INCOME OF 1023 MILLION OR 121 A SHARE FOR THE QUARTER UP SHARPLY FROM 29 MILLION OR 35 CENTS A SHARE A YEAR EARLIER REVENUE NEARLY DOUBLED TO 16 BILLION FROM 8269 MILLION ON A 150 INCREASE IN NUMBER OF COMPUTERS SHIPPED THE NUMBERS CAP A YEAR OF RECORD GROWTH FOR COMPAQ SET OFF BY THE UNVEILING OF A LINE OF LOWPRICED MACHINES IN JUNE 1992 THOUGH COMPAQ'S RESULTS WERE IN LINE WITH WALL STREET'S EXPECTATIONS THEY NEVERTHELESS CAME AS WELCOME NEWS TO INDUSTRY ANALYSTS WHOSE HOPES WERE BADLY BATTERED IN RECENT WEEKS BY MANY OF COMPAQ'S BIGGEST COMPETITORS COMPAQ STOCK JUMPED 3375 OR 74 TO CLOSE AT 49 IN YESTERDAY'S NEW YORK STOCK EXCHANGE COMPOSITE TRADING THOUGH THE ISSUE IS WELL BELOW ITS 52WEEK HIGH OF 6175 IN RECENT WEEKS APPLE COMPUTER INC HAS REPORTED A QUARTERLY NET LOSS AND DELL COMPUTER CORP HAS SAID IT EXPECTS TO DO SO AND AST RESEARCH INC HAS TOLD INVESTORS IT WILL TAKE A 125 MILLION CHARGE TO COVER ITS PURCHASE OF TANDY CORP'S PERSONAL COMPUTER BUSINESS THOSE WOES ALONG WITH PREDICTIONS THAT PC DEMAND COULD SLOW BY THE FOURTH QUARTER HAS PROMPTED SPECULATION ABOUT EVEN TOUGHER TIMES AHEAD FOR AN INDUSTRY THAT ONLY MONTHS AGO SEEMED UNASSAILABLE COMPAQ FOR ITS PART OFFERED ITS OWN SUCCESS AS EVIDENCE THAT ITS INDUSTRY REMAINS HEALTHY I DON'T THINK THERE'S A GREAT SECRET HERE SAID DARYL J WHITE COMPAQ'S CHIEF FINANCIAL OFFICER IT JUST POINTS TO US HAVING OUR HOUSE IN ORDER EARLIER THAN MOST OTHERS MR WHITE SAID HE EXPECTS PRICES TO REMAIN RELATIVELY STABLE THROUGH YEAR'S END AND SAID COMPAQ ISN'T BRACING FOR A DROPOFF IN DEMAND IN THE SECOND HALF THOUGH HE CONCEDES IT'S A VERY CLOUDY PICTURE MR WHITE SAID HE EXPECTS COMPAQ'S SALES TO BE BOOSTED IN THE FALL BY NEW PRODUCTS INCLUDING A NEW LINE OF SERVERS AND A COMPUTER LINE AIMED AT SMALLOFFICE AND CONSUMER BUYERS ANALYSTS MEANTIME PORTRAYED MANY OF THE PROBLEMS FACING THE PERSONAL COMPUTER BUSINESS AS COMPANYSPECIFIC BELYING TALK OF A BROADER SLOWDOWN DELL AND APPLE FOR EXAMPLE ARE BOTH BATTLING WEAK PRODUCT LINES THAT HAVE MADE IT DIFFICULT TO TAKE FULL ADVANTAGE OF SOARING DEMAND IN RECENT MONTHS DELL FOR INSTANCE IS SUFFERING FROM ITS FAILURE TO DELIVER A COMPETITIVE NOTEBOOK COMPUTERA BUSINESS COMPAQ NOW DOMINATES AST FOR ITS PART IS SIMPLY WORKING TO DIGEST ITS ACQUISITION A PURCHASE THAT ANALYSTS SAY IS LIKELY TO BOOST THE COMPANY ONCE THE KINKS ARE WORKED OUT IF YOU LOOK AT IT FACTUALLY IT'S EASY TO PAINT EVERYBODY WITH THE SAME BRUSH SAID LUCIANNE PAINTER A TECHNOLOGY ANALYST AT SALOMON BROTHERS IN NEW YORK THERE ARE VERY LEGITIMATE INDIVIDUAL REASONS WHY THESE COMPANIES ARE HAVING PROBLEMS COMPAQ NEVERTHELESS PLANS TO TAKE ADVANTAGE OF ITS COMPETITORS' PAIN THE COMPANY BOOSTED SPENDING ON RESEARCH AND DEVELOPMENT AND ADVERTISING IN THE SECOND QUARTER AND SAID THE INCREASED SPENDING WILL CONTINUE INTO THE THIRD QUARTER DESPITE THOSE SPENDING INCREASES GROSS PROFIT MARGINS AT THE COMPANY WENT UP DURING THE PERIOD TO 242 FROM 229 AT THE END OF THE FIRST QUARTER AT THE END OF LAST YEAR'S SECOND QUARTER COMPAQ'S GROSS MARGINS WERE 302 FOR ALL THE GOOD NEWS ANALYSTS REMAINED WARY ABOUT AN INVENTORY INCREASE AT COMPAQ AS WELL AS AT MOST OTHER PC COMPANIES COMPAQ SAID ITS INVENTORY TOTALED 12 BILLION IN THE QUARTER UP FROM 916 MILLION AT THE END OF THE FIRST QUARTER EVEN THOUGH REVENUES FROM QUARTER TO QUARTER WERE BASICALLY FLAT JAMES POYNER A TECHNOLOGY ANALYST AT OPPENHEIMER & CO IN NEW YORK SAID INVESTORS WERE WILLING TO OVERLOOK THE INVENTORY ISSUE IN LIGHT OF THE EVEN WORSE NEWS FROM MANY OF COMPAQ'S COMPETITORS I THINK PEOPLE ARE SO PLEASED THIS ISN'T ANOTHER APPLE THAT THEY'RE GIDDY HE SAID THE MARKET'S A LITTLE SCHIZOID RIGHT NOW 9307220034 930722 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 PNC BANK NA 500 MILLION ISSUE OF BANK NOTES DUE JULY 28 1994 WAS PRICED INITIALLY AT PAR TO YIELD 365 ACCORDING TO MCM CORPORATEWATCH RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE NONCALLABLE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP PNC IS A UNIT OF PNC FINANCIAL CORP WALT DISNEY CO 300 MILLION ISSUE OF 755 DEBENTURES DUE JULY 15 2093 WAS PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 30 YEARS WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE TREASURYS THE OFFERING SIZE WAS INCREASED FROM 150 MILLION RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO MELLON BANK NA 250 MILLION ISSUE OF 650 SUBORDINATED NOTES DUE AUG 1 2005 WAS PRICED AT 9958 TO YIELD 655 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO MELLON BANK NA IS A UNIT OF MELLON BANK CORP PET INC 200 MILLION TWOPART DEBT ISSUE WAS PRICED THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP THE FIRST TRANCHE 100 MILLION OF 575 NOTES DUE JULY 1 1998 WAS PRICED AT 9991 TO YIELD 577 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE TREASURYS GROSS SPREAD IS 625 SELLING CONCESSION IS 375 AND REALLOWANCE IS 225 THE SECOND TRANCHE 100 MILLION OF 650 NOTES DUE JULY 1 2003 WAS PRICED AT 99632 TO YIELD 655 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 78 BASIS POINTS OVER TREASURYS GROSS SPREAD IS 650 SELLING CONCESSION IS 4 AND REALLOWANCE IS 250 BOTH TRANCHES ARE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P PUEBLO XTRA INTERNATIONAL INC 180 MILLION ISSUE OF SENIOR NOTES DUE AUG 1 2003 WAS PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO PUEBLO XTRA IS A UNIT OF PXC&M HOLDINGS INC CIT GROUP HOLDINGS 155 MILLION ISSUE OF MANUFACTURED HOUSING ASSETBACKED CERTIFICATES WAS PRICED IN FIVE PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE 6055 MILLION IN 470 CLASS A1 CERTIFICATES WAS PRICED AT 99 28/32 TO YIELD 471 A 65 BASIS POINT SPREAD ABOVE THE TREASURY TWOYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 203 YEARS THE 291 MILLION IN 575 CLASS A2 CERTIFICATES WAS PRICED AT 99 25/32 TO YIELD 581 A 75 BASIS POINT SPREAD ABOVE THE TREASURY'S FIVEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 544 YEARS THE 15 MILLION IN 610 CLASS A3 CERTIFICATES WERE PRICED AT 99 23/32 TO YIELD 618 AN 80 BASIS POINT SPREAD ABOVE THE TREASURY'S SEVENYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 755 YEARS THE 2068 MILLION IN 650 CLASS A4 CERTIFICATES WERE PRICED AT 99 25/32 TO YIELD 658 AN 85 BASIS POINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 989 YEARS THE 21708 MILLION IN 685 CLASS B CERTIFICATES WERE PRICED AT 99 25/32 TO YIELD 693 A 155 BASIS POINT SPREAD ABOVE THE TREASURY'S SEVENYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 648 YEARS THE FIRST FOUR CLASSES WERE RATED TRIPLEA BY MOODY'S AND S&P THE CLASS B CERTIFICATES WERE RATED TRIPLEBPLUS BY S&P CREDIT ENHANCEMENT TO THE TRANSACTION IS PROVIDED BY THE 14 SUBORDINATE B CLASS AND OVERCOLLATERALIZATION OF 175 BASIS POINTS OF EXCESS SPREADS AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA MODEL THE FINAL MATURITY OF THE ISSUE IS JULY 15 2019 MONTHLY PAYMENTS BEGIN AUG NORANDA FOREST INC 150 MILLION ISSUE OF 750 DEBENTURES DUE JULY 15 2003 PRICES AT 99236 TO YIELD 761 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 178 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INC AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP DELIVERY IS SCHEDULED FOR JULY 28 WITH INTEREST ACCRUING JULY 15 NORANDA FOREST IS A UNIT OF NORANDA INC CHEMICAL BANK 150 MILLION ISSUE OF 420 SUBORDINATED FLOATING RATE NOTES DUE JULY 29 2003 WAS PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES FLOAT QUARTERLY 625 BASIS POINTS ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE WITH A FLOOR OF 42 THREEMONTH LIBOR IS CURRENTLY 325 RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO CHEMICAL BANK IS A UNIT OF CHEMICAL BANKING CORP AMERICAN HEALTHCARE MANAGEMENT INC 100 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE AUG 1 2003 WAS PRICED AT PAR TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NUVEEN INSURED PREMIUM INCOME FUND 2 AN INITIAL OFFERING OF 19 MILLION COMMON SHARES OF PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH GROSS SPREAD IS 95 CENTS SELLING CONCESSION IS 65 CENTS AND REALLOWANCE IS 40 CENTS MDL INFORMATION SYSTEMS AN INITIAL OFFERING OF 82 MILLION COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES GROSS SPREAD IS 63 CENTS SELLING CONCESSION IS 38 CENTS AND REALLOWANCE IS 10 CENTS STANT CORP AN OFFERING OF 65 MILLION COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY GROSS SPREAD IS 104 SELLING CONCESSION IS 62 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR JULY 29 CALIFORNIA 2 BILLION 19931994 REVENUE ANTICIPATION NOTES DUE JUNE 28 1994 WERE REPRICED BY A LEHMAN BROTHERS GROUP THE YIELD WAS CUT FIVE BASIS POINTS ON THE 165 BILLION OF 350 FIXEDRATE NOTES WHICH ARE NOW PRICED AT 100581 TO YIELD 285 THE INTIAL PRICING WAS 350 AT 100536 TO YIELD 290 THERE ARE 350 MILLION OF FLOATINGRATE NOTES THAT AREN'T BEING PUBLICLY REOFFERED THE BONDS ARE RATED MIG1 BY MOODY'S AND SP1 BY S&P WASHINGTON STATE 42261 MILLION GENERAL OBLIGATION REFUNDING BONDS WERE REPRICED BY A LEHMAN BROTHERS GROUP TO BOOST MOST YIELDS BY UP TO FIVE BASIS POINTS THE RANGE OF YIELDS IS NOW BETWEEN 240 IN 1993 TO 490 IN 2003 COMPARED WITH THE INITIAL RANGE BETWEEN 240 IN 1993 TO 4875 IN 2003 THE OFFERING CONSISTS OF 32201 MILLION VARIOUS PURPOSE GENERAL OBLIGATION REFUNDING BONDS SERIES R94A AND 996 MILLION MOTOR VEHICLE FUEL TAX GENERAL OBLIGATION REFUNDING BONDS SERIES R94B BOTH SEGMENTS OF THE OFFERING ARE RATED DOUBLEA BY MOODY'S AND S&P METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY TENN 158745 MILLION WATER AND SEWER REVENUE BONDS SERIES 1993 WERE REPRICED BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP TO REDUCE ONE TERM BOND YIELD BY TWO BASIS POINTS TERM BONDS DUE 2013 NOW YIELD 553 COMPARED WITH THE PRIOR YIELD OF 555 THE OVERALL YIELD RANGE ON THIS OFFERING REMAINS UNCHANGED BETWEEN 370 IN 1996 TO 5625 IN 2016 THE BONDS ARE RATED FGICINSURED AND RATED TRIPLEA BY MOODY'S AND BY S&P OKLAHOMA 100 MILLION GENERAL OBLIGATION BONDS OKLAHOMA BUILDING BONDS OF 1992 SERIES B WERE TENTATIVELY PRICED BY A STIFEL NICOLAUS & CO GROUP TO YIELD FROM 220 IN 1994 TO 525 IN 2013 THE BONDS ARE RATED DOUBLEA MOODY'S AND BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 1175 BILLION ISSUE OF SERIES 1993G27 REMIC SECURITIES HAS BEEN INCREASED FROM 750 MILLION BY ITS UNDERWRITER KIDDER PEABODY & CO THE OFFERING IS BACKED BY THE STRIPPED MORTGAGE BACKED SECURITIES TRUST 233 WHICH IS TURN BACKED BY 75 GINNIE MAE CERTIFICATES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 350 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 155 BILLION ISSUE OF STRIPPED MORTGAGE BACKED SECURITIES IS BEING OFFERED TRUST 237 IS BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 450 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 PLUS OR MINUS 10 BASIS POINTS AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 29 YEARS PLUS OR MINUS FIVE MONTHS UNDERWRITERS ARE DONALDSON LUFKIN & JENRETTE SECURITIES CORP SALOMON BROTHERS INC MERRILL LYNCH & CO KIDDER PEABODY PRUDENTIAL SECURITIES INC MORGAN STANLEY PAINEWEBBER INC BEAR STEARNS & CO LEHMAN BROTHERS JP MORGAN SECURITIES INC AND NIKKO SECURITIES INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY BEAR STEARNS THE OFFERING SERIES 1993149 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION ISSUE OF SERIES 1993141 REMIC SECURITIES HAS BEEN INCREASED FROM 500 MILLION BY ITS UNDERWRITER GOLDMAN SACHS & CO THE OFFERING IS BACKED BY THE AGENCY'S 30YEAR 7 SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 755 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PAINEWEBBER THE OFFERING SERIES 1993155 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 310 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1570 IS BACKED BY GOLD MACS 150 WHICH IS IN TURN BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 300 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 353 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION ISSUE OF 527 MEDIUMTERM NOTES DUE JULY 28 1998 WAS PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NOT CALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1572 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 225 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF SERIES 1566 REMIC SECURITIES HAS BEEN INCREASED FROM 200 MILLION BY ITS UNDERWRITER PAINEWEBBER INC THE OFFERING IS BACKED BY THE AGENCY'S 7YEAR 6 SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 275 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 82 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993154 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA CURVE 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 ISSUE OF REMIC SECURITIES IS BEING OFFERED BY DAIWA SECURITIES AMERICA INC THE OFFERING SERIES 1993146 IS BACKED BY THE PRINCIPAL ONLY PORTION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 221 AND THE PRINCIPAL ONLY PORTION OF SMBS 218 THE SMBS COLLATERAL IS BACKED BY THE AGENCY'S 15YEAR MORTGAGEBACKED SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993150 IS BACKED BY THE PRINCIPAL ONLY PORTION OF STRIPPED MORTGAGE BACKED SECURITIES SMBS 54 AND BY THE PRINCIPAL ONLY PORTION OF SMBS 172 THE SMBS COLLATERAL IS IN TURN BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY KIDDER PEABODY THE OFFERING SERIES 1993153 IS BACKED BY THE PRINCIPALONLY PORTION OF STRIPPED MORTGAGEBACKED SECURITIES SMBS 203 WHICH IS IN TURN BACKED BY THE AGENCY'S 8 30YEAR MORTGAGEBACKED SECURITIES THE WEIGHTEDAVERAGE LIVES ASSUME PREPAYMENTS AT 400 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTEDAVERAGE COUPON RATE OF 846 AND WEIGHTEDAVERAGE REMAINING TERM TO MATURITY OF 350 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1571 IS BACKED BY THE PRINCIPAL ONLY PORTION FROM GOLD MACS 146 WHICH IS IN TURN BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 350 OF THE PSA CURVE FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PAINEWEBBER THE OFFERING SERIES 1993151 IS BACKED BY THE PRINCIPALONLY PORTION OF STRIPPED MORTGAGEBACKED SECURITIES SMBS TRUST 218 AND THE PRINCIPALONLY PORTION OF SMBS TRUST 221 THE SMBS COLLATERAL IS IN TURN BACKED BY THE AGENCY'S 75 30YEAR MORTGAGEBACKED SECURITIES THE WEIGHTEDAVERAGE LIVES ASSUME PREPAYMENTS AT 250 OF THE PSA CURVE TENNESSEE VALLEY AUTHORITY 2 BILLION ISSUE OF DEBT IN TWOTRANCHES TVA PRICED 125 BILLION OF 6125 POWER BONDS DUE JULY 15 2003 PRICED AT 98716 TO YIELD 63 ACCORDING TO MCM CORPORATE WATCH THE BONDS NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS GROSS SPREAD IS 4 SELLING CONCESSION IS 250 AND REALLOWANCE IS 2 THE SECOND TRANCHE 750 MILLION OF 725 POWER BONDS DUE JULY 15 2043 WAS PRICED AT 97508 TO YIELD 744 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP WHICH IS ALSO THE DEAL COORDINATOR GROSS SPREAD IS 625 SELLING CONCESSION IS 375 AND REALLOWANCE IS 3 PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY 645745 MILLION SPECIAL TAX REVENUE BONDS CITY OF PHILADELPHIA FUNDING PROGRAM SERIES OF 1993 WERE TENTATIVELY PRICED BY A PRYOR MCCLENDON COUNTS & CO INC GROUP TO YIELD FROM 340 IN 1995 TO 575 ON BONDS DUE 2023 BONDS DUE 19952010 ARE FGICINSURED AND RATED TRIPLEA BY MOODY'S AND BY S&P BONDS DUE 2015 AND 2023 ARE MBIAINSURED AND TRIPLEARATED BY BOTH AGENCIES NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 472725 MILLION ST LUKESROOSEVELT HOSPITAL CENTER FHAINSURED MORTGAGE REVENUE BONDS 1993 SERIES A WERE REPRICED BY A BEAR STEARNS GROUP SERIAL BOND YIELDS WERE ALL REDUCED FIVE BASIS POINTS TERM BONDS DUE 2013 WERE LEFT UNCHANGED TERM BONDS DUE 2018 NOW YIELD TWO BASIS POINTS MORE AT 572 AND TERM BONDS DUE 2029 NOW YIELD AROUND THREE BASIS POINTS MORE AT 580 THE OVERALL YIELD RANGE IS NOW BETWEEN 325 IN 1995 AND 580 IN 2029 COMPARED WITH THE INITIAL RANGE BETWEEN 330 IN 1995 AND 5766 IN 2029 UNDERWRITERS EXPECT THE BONDS WILL BE RATED DOUBLEA BY MOODY'S AND TRIPLEA BY S&P PORT AUTHORITY OF NEW YORK & NEW JERSEY 100 MILLION 87TH SERIES CONSOLIDATED REFUNDING REVENUE BONDS APPARENTLY WERE WON BY CHEMICAL SECURITIES INC WITH A BID SETTING THE TRUE INTEREST COST AT 5388 THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P KINGDOM OF DENMARK SOVEREIGN 1 BILLION DUTCH GUILDERS OF 6125 EUROBONDS DUE AUG 20 1998 AT ISSUE PRICE 10080 VIA ABN AMRO BANK NV REOFFERED AT PAR TO YIELD 6125 MARGIN 20 BASIS POINTS ABOVE 6125 DUTCH GOVERNMENT LOAN DUE JULY 1998 FEES 1 POINT DE NATIONALE INVESTERINGSBANK NV NETHERLANDS 250 MILLION MARKS OF 625 EUROBONDS DUE AUG 18 1998 AT ISSUE PRICE 10155 VIA SCHWEIZERISCHE BANKVEREIN DEUTSCHELAND AG SWISS BANK CORP'S GERMAN SUBSIDIARY YIELD 6358 AT COMANAGING BANKS' BREAKEVEN PRICE MARGIN 24 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT BOND ISSUE LAUNCHED UNDER BORROWER'S 500 MILLION ECU EUROMEDIUM TERM NOTE PROGRAMME FEES 2 POINTS INTERNATIONAL FINANCE CORP SUPRANATIONAL 150 BILLION LIRE OF FLOATING RATE EURONOTES DUE AUG 1998 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO INTEREST PAID QUARTERLY AT 30 BASIS POINTS BELOW THE LIRA LONDON INTERBANK OFFERED RATE ISSUE PRICE 10045 FEES 025 POINT KINGDOM OF SWEDEN SOVEREIGN 20 BILLION SPANISH PESETAS OF REVERSECOUPON FLOATING RATE EURONOTES DUE AUG 25 2000 VIA BANCO BILBAO VIZCAYA INTEREST SET AT 1075 ANNUAL IN FIRST YEAR THEREAFTER AT 18 SEMIANNUAL MINUS THE PREVAILING SIXMONTH LIBOR FOR PESETAS ISSUE PRICE 101375 REOFFER PRICE 9980 FEES 1875 POINTS BANCO DO BRASIL SA BRAZIL 200 MILLION OF 9 SEMIANNUAL EUROBONDS DUE AUG 5 1998 REOFFERED AT 995660 VIA CHEMICAL INVESTMENT BANK LTD AND PARIBAS CAPTIAL MARKETS LTD YIELD AT REOFFER 911 MARGIN 400 BASIS POINTS ABOVE COMPARABLE TREASURY AT LAUNCH FEES 1125 POINTS SG WARBURG GROUP PLC UK 91 MILLION OF SUBORDINATED CONVERTIBLE 6125 EUROBONDS DUE AUG 4 2008 AT ISSUE PRICE PAR VIA SG WARBURG SECURITIES LTD CONVERTIBLE AT 854 PENCE A SHARE A PREMIUM OF 18 ABOVE WEDNESDAY MORNING MIDMARKET PRICE OF 724 PENCE CALLABLE AFTER AUG 20 1998 AT PAR FEES 250 POINTS MARUZEN CO JAPAN 150 MILLION OF 1375 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE AUG 5 1997 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC GUARANTOR SAKURA BANK LTD EACH 10000 BOND CARRIES TWO WARRANTS EXERCISABLE FROM AUG 19 1993 TO JULY 29 1997 TO PURCHASE MARUZEN SHARES AT AN EXPECTED 250 PREMIUM ABOVE THE CLOSING SHARE PRICE ON JULY 28 WEDNESDAY CLOSING SHARE PRICE IS 275 YEN FEES 225 POINTS CREDIT LOCAL DE FRANCE FRANCE 150 MILLION SWISS FRANCS OF 425 PRIVATELY PLACED NOTES DUE AUG 25 1998 AT ISSUE PRICE 10230 VIA BANQUE PARIBAS SUISSE FEES 150 POINTS SWEDISH NATIONAL HOUSING AND FINANCE CORP SBAB SWEDEN 100 MILLION SWISS FRANCS OF 4625 PUBLIC BONDS DUE SEPT 2 1998 AT ISSUE PRICE 102 VIA CREDIT SUISSE FEES 1625 POINTS BAYERISCHE LANDESBANK GERMANY 100 MILLION SWISS FRANCS OF 4625 SUBORDINATED PUBLIC BONDS DUE SEPT 2 2003 AT ISSUE PRICE 10175 VIA CREDIT SUISSE FEES 2375 POINTS OSAKI ELECTRIC CO JAPAN 80 MILLION SWISS FRANCS OF 1125 PRIVATELY PLACED NOTES DUE AUG 12 1997 WITH EQUITYPURCHASE WARRANTS AT ISSUE PRICE PAR VIA BANK VON ERNST & CIE EACH 50000 FRANC NOTE CARRIES 50 WARRANTS AND IS EXERCISABLE FROM AUG 26 1993 TO AUG 5 1997 TO PURCHASE OSAKI SHARES FINAL TERMS FIXED JULY 27 FEES 1625 POINTS 9307220033 930722 WHO'S NEWS SALOMON INC SALOMON INC NEW YORK E STEPHEN BENSON REJOINED SALOMON BROTHERS INVESTMENT BANKING FIRM AS A MANAGING DIRECTOR AND COHEAD OF ITS PRIMARY EQUITY MARKETS BUSINESS WITH BOB KLEINERT MR BENSON 45 YEARS OLD FIRST JOINED THE FIRM IN 1977 AND IN 1981 BECAME A MANAGING DIRECTOR IN INVESTMENT BANKING IN 1988 HE LEFT TO BECOME A GENERAL PARTNER AT GIBBONS GREEN VAN AMERONGEN A LEVERAGED BUYOUT FIRM IN 1991 HE HELPED FOUND ANTHEM PARTNERS AN INVESTMENT BANKING FIRM AFFILIATED WITH SANWA BANK OF JAPAN 9307220032 930722 WHO'S NEWS DUN & BRADSTREET NAMES WEISSMAN AS CHIEF EXECUTIVE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DUN & BRADSTREET CORP NAMED A NEW CHIEF EXECUTIVE OFFICER WHO CHARACTERIZED HIMSELF AS IMPATIENT AND SAID HE WANTS THE BIG INFORMATION SERVICES COMPANY TO ACCELERATE ITS EFFORTS TO MEET INCREASINGLY COMPLEX CUSTOMER DEMANDS ROBERT E WEISSMAN 53 CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER WILL SUCCEED CHARLES W MORITZ 57 WHO WILL CONTINUE AS CHAIRMAN EFFECTIVE JAN 1 1994 BOTH MEN HAVE BEEN THE TOP OFFICERS AT THE COMPANY SINCE 1985 THE ANNOUNCEMENT CAME AS THE COMPANY REPORTED A 77 INCREASE IN SECONDQUARTER NET INCOME TO 1388 MILLION OR 78 CENTS A SHARE FROM 1288 MILLION OR 72 CENTS A SHARE IN THE YEARAGO PERIOD BUT AN 83 INCREASE IN EARNINGS PER SHARE AND GENERALLY FLAT REVENUE WHICH DECLINED LESS THAN 1 TO 116 BILLION FELL SHORT OF THE COMPANY'S OFTSTATED GOAL OF GROWTH IN THE LOW DOUBLE DIGITS FOR EARNINGS PER SHARE AND REVENUE THE COMPANY SAID UNFAVORABLE EXCHANGE RATES HURT REVENUE FIGURES AND CONTRIBUTED TO DECLINES IN REVENUE AT THREE OF THE COMPANY'S FIVE BUSINESS SEGMENTS IN THE FACE OF SLOW REVENUE GROWTH MR WEISSMAN SAID THE COMPANY WOULD NEED TO MOVE QUICKLY TO MEET RAPIDLY CHANGING MARKET DEMANDS I WANT TO ACCELERATE THE SPEED OF OUR PRODUCT FLOW AND ACCELERATE CHANGE IN TERMS OF COMPETITIVENESS AND SERVICE LEVEL MR WEISSMAN SAID THE INCOMING CEO SAID HE IS IMPATIENT BY NATURE AND MEASURES CHANGE IN TERMS OF DAYS AND WEEKS RATHER THAN YEARS MR WEISSMAN SAID GROWTH WOULD NEED TO COME FROM EXPANDING THE BREADTH OF THE COMPANY'S BUSINESS AND ACCELERATING INTEGRATION AMONG THE COMPANY'S UNITS HE SAID HE ALSO WANTS TO GIVE MANAGERS MORE AUTONOMY REWARDING SUCCESS AND HOLDING PEOPLE ACCOUNTABLE IF THEY DON'T DO IT MR WEISSMAN JOINED THE COMPANY IN 1979 WHEN D&B ACQUIRED NATIONAL CSS A COMPUTER TIME SHARING BUSINESS THAT HE RAN HE BECAME AN EXECUTIVE VICE PRESIDENT IN 1980 AND A MEMBER OF THE BOARD IN 1981 WHEN HE TAKES OVER AS CHIEF MR WEISSMAN WILL NEED TO ADDRESS SEVERAL GROWING CONCERNS AT THE COMPANY'S PRIMARY BUSINESSES ESPECIALLY IN THE MARKETING INFORMATION SERVICES SEGMENT THE TWO KEY ELEMENTS OF THE BUSINESS IMS INTERNATIONAL WHICH SERVES THE PHARMACEUTICAL INDUSTRY AND NIELSEN MARKETING RESEARCH WHICH MONITORS PACKAGED GOODS MUST WRESTLE WITH FALLING PRICE FLEXIBILITY AMONG ITS CUSTOMERS WHICH COULD DAMP DEMAND FOR D&B'S SUPPORT SERVICES BUT IT CUTS BOTH WAYS WHEN CUSTOMERS FACE COST PRESSURE MR WEISSMAN SAID THEY WANT TO REDUCE COSTS BUT THEY ALSO WANT MORE INFORMATION ABOUT COMPETITORS SO THEY CAN DEVELOP NEW STRATEGIES HE ALSO SAID HE WANTS TO CHANGE THE GENETIC CODE OF D&B'S PERSONNEL IF WE DON'T HAVE THE PEOPLE INSIDE WHO CAN DO WHAT WE WANT TO DO OR NEED TO DO WE WILL GO OUTSIDE THE COMPANY TO GET THOSE PEOPLE HE NOTED THAT D&B LAST WEEK HIRED A TOP OFFICIAL OF RIVAL MARKET RESEARCH FIRM INFORMATION RESOURCES INC TO DIRECT NIELSEN MARKETING RESEARCH USA 9307220031 930722 BUSINESS BRIEF NORTEK INC PROVIDENCE CONCERN EXPECTS SLIGHTLY PROFITABLE' QUARTER NORTEK INC SAID IT EXPECTS TO REPORT THE SECOND QUARTER WAS SLIGHTLY PROFITABLE ON A 5 INCREASE IN SALES FROM COMPARABLE OPERATIONS TO ABOUT 195 MILLION IN THE YEARAGO PERIOD THE PROVIDENCE RI BUILDING PRODUCTS CONCERN HAD NET INCOME OF 300000 OR TWO CENTS A SHARE ON SALES OF 2159 MILLION BUT IT HAS SOLD SOME OPERATIONS SINCE THEN SPEAKING AT THE ANNUAL MEETING RICHARD BREADY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID NORTEK HAS CUT DEBT AND REDUCED COSTS HOWEVER HE SAID CURRENT SIGNS FROM THE MARKETPLACE AREN'T ENCOURAGING HE NOTED THAT HOUSING STARTS ARE UP ONLY SLIGHTLY AND CONSUMER CONFIDENCE IS WEAK 9307220030 930722 BUSINESS BRIEF AMERICAN EXPRESS CO TEST OF AUTOMATIC DISPENSER OF PLANE TICKETS IS STARTED A UNIT OF NEW YORK'S AMERICAN EXPRESS CO IS TESTING AN AUTOMATIC AIRLINETICKET DISPENSER THAT ISSUES PLANE TICKETS IN CORPORATE OFFICES THE MACHINE BEING TESTED AT NYNEX CORP IN NEW YORK ALLOWS BUSINESS EXECUTIVES TO OBTAIN AIRLINE TICKETS AT THE OFFICE AT ANY TIME WITHOUT OUTSIDE ASSISTANCE THE MACHINE BEING USED AT NYNEX ONLY ISSUES TICKETS FOR SHUTTLE FLIGHTS WHICH DON'T REQUIRE RESERVATIONS AMERICAN EXPRESS SAID THAT AFTER OVERCOMING SOME TECHNICAL HURDLES THE MACHINE WILL BE ABLE TO ISSUE TICKETS TO MOST DESTINATIONS THE MACHINE IS SIMILAR TO AN AUTOMATED TELLER MACHINE FEATURING A TOUCHSCREEN MENU MARKETED BY AMERICAN EXPRESS'S TRAVEL MANAGEMENT SERVICES UNIT THE MACHINE IS ACTIVATED BY USING AN AMERICAN EXPRESS CARD AND A PASSWORD 9307220029 930722 TECHNOLOGY & HEALTH STUDIES SUGGEST DEVICE TO REAM ARTERIES OFFERS LITTLE ADVANTAGE OVER BALLOONS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A ROTOROOTER DEVICE FOR REAMING OUT CLOGGED HEART ARTERIES PROVIDES LITTLE ADVANTAGE OVER A WIDELY USED BALLOON TECHNIQUE WHILE INCREASING COSTS AND RISKS FOR PATIENTS TWO STUDIES SUGGEST THE REPORTS AMOUNT TO A SETBACK FOR MAKERS OF SUCH DEVICES WHO BELIEVED THAT CUTTING AWAY PLAQUE THAT ACCUMULATES ON CORONARY VESSEL WALLS IN A PROCEDURE KNOWN AS ATHERECTOMY WOULD ACHIEVE BETTER RESULTS THAN SOCALLED BALLOON ANGIOPLASTY IN THE BALLOON TECHNIQUE PLAQUE IS SQUASHED AGAINST ARTERY WALLS HOWEVER RESEARCHERS SAID THE CUTTING DEVICES REMAIN AN IMPORTANT TOOL FOR OPENING BLOCKAGES THAT AREN'T SUITABLE FOR ANGIOPLASTY ALMOST 400000 PATIENTS A YEAR UNDERGO ANGIOPLASTY TO OPEN OBSTRUCTED ARTERIES WHICH CAUSE SEVERE CHEST PAIN CALLED ANGINA AND LEAD TO HEART ATTACKS BUT IN 30 TO 35 OF CASES THE BLOCKAGE RECURS WITHIN SIX MONTHS OF TREATMENT THE RESULTING NEED FOR REPEAT BALLOON PROCEDURES OR CORONARYBYPASS SURGERY ADDS MORE THAN 2 BILLION A YEAR TO US HEALTH COSTS IT'S THE MOST VEXING PROBLEM IN THE FIELD OF CARDIOLOGY TODAY SAID ERIC J TOPOL CHIEF OF CARDIOLOGY AT THE CLEVELAND CLINIC AND PRINCIPAL INVESTIGATOR FOR ONE OF THE STUDIES THE REPORTS OF WHICH APPEAR IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE BOTH STUDIES WERE FUNDED BY ELI LILLY INC INDIANAPOLIS A MAKER OF BOTH ATHERECTOMY AND ANGIOPLASTY DEVICES ONE STUDY COMPARED 1012 PATIENTS HALF OF WHOM UNDERWENT ANGIOPLASTY AND HALF OF WHOM HAD ATHERECTOMIES INITIALLY ATHERECTOMY OPENED PATIENTS' VESSELS MORE EFFECTIVELY THAN DID ANGIOPLASTY THE STUDY FOUND BUT AFTER SIX MONTHS 28 OF ATHERECTOMY PATIENTS AND 30 OF ANGIOPLASTY PATIENTS HAD SECOND PROCEDURES ATHERECTOMY DIDN'T LEAD TO ANY DROP IN THE NEED FOR REPEAT PROCEDURES DR TOPOL SAID IN ADDITION 76 OF ATHERECTOMY PATIENTS SUFFERED MILD HEART ATTACKS SHORTLY AFTER THE PROCEDURE COMPARED WITH 44 OF ANGIOPLASTY PATIENTS MOREOVER VESSELS COLLAPSED IN TWICE AS MANY ATHERECTOMY PATIENTS WITHIN 24 HOURS OF THE PROCEDUREA RESULT THAT SURPRISED RESEARCHERS MEANWHILE COSTS FOR ATHERECTOMY PATIENTS AMOUNTED TO 11904 PER CASE 12 HIGHER THAN THOSE FOR ANGIOPLASTY DONALD BAIM CHIEF OF INTERVENTIONAL CARDIOLOGY AT BETH ISRAEL HOSPITAL BOSTON SAID ATHERECTOMY WOULD HAVE FARED BETTER HAD DOCTORS REMOVED MORE TISSUE WITH THE CUTTING TOOL HIS OWN STUDIES HAVE SHOWN THAT THE WIDER THE CHANNEL OPENED DURING THE PROCEDURE THE BETTER THE LONGTERM RESULTS HE SAID THE STUDY MAY HAVE BEEN CONDUCTED TOO SOON AFTER THE ATHERECTOMY DEVICE REACHED THE MARKET AND BEFORE DOCTORS BECAME PROFICIENT IN USING IT SALES OF ANGIOPLASTY DEVICES TOTALED 647 MILLION IN THE US LAST YEAR ACCORDING TO COWEN & CO ANALYST DANIEL T LEMAITRE AND REACHED ABOUT 1 BILLION WORLDWIDE THE US TOTAL IN 1992 INCLUDED ABOUT 60 MILLION FOR ATHERECTOMY DEVICES ALL FOR ELI LILLY'S DEVICES FOR VASCULAR INTERVENTION UNIT WHOSE INSTRUMENT WAS APPROVED FOR MARKETING BY THE FOOD AND DRUG ADMINISTRATION IN 1990 HEART TECHNOLOGY INC BELLEVUE WASH AND ARROW INTERNATIONAL INC READING PA ARE AMONG COMPANIES WITH SIMILAR DEVICES RECENTLY APPROVED OR UNDER DEVELOPMENT MR LEMAITRE PREDICTS SALES OF SUCH SECONDGENERATION DEVICES COULD EXCEED 300 MILLION BY 1996 A SECOND STUDY HEADED BY ALLAN G ADELMAN OF MOUNT SINAI HOSPITAL TORONTO COMPARED ATHERECTOMY AND ANGIOPLASTY AMONG 274 CANADIAN PATIENTS SUFFERING BLOCKAGES IN THE LEFT ANTERIOR DESCENDING ARTERY THE STUDY FOUND AN INITIAL ADVANTAGE FOR ATHERECTOMY PATIENTS THAT DIDN'T HOLD UP AFTER SIX MONTHS 9307220028 930722 HEARD ON THE STREET KYOCERA'S RALLY AMID JAPAN'S MARKET SLUMP SPLITS ANALYSTS INTO SHORT LONGTERM CAMPS BY DAVID P HAMILTON AND QUENTIN HARDY STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE JAPANESE STOCK MARKET MAY BE MILES BELOW ITS ONETIME PEAK BUT IT ISN'T IMMUNE TO POCKETS OF SPECULATIVE ENTHUSIASM TAKE KYOCERA CORP THE STOCK IS A BIG NAME IN JAPAN AND IT HAS HAD A BIG RUNUP CLIMBING 13 IN TWO WEEKS SOME ANALYSTS HERE SAY THE RALLY HAS BEEN OVERDONE YET MANY HASTEN TO ADD THAT AS SOON AS THE STOCK GIVES GROUND IT'LL BE A LONGTERM BUY THE DISAGREEMENT AMONG ANALYSTS HERE SEEMS TO CENTER ON WHETHER TO BUY KYOCERA SHARES NOW OR WAIT FOR A PULLBACK BEFORE INVESTING MORE HEAVILY WHAT'S BEHIND ALL THE ENTHUSIASM FOR THIS KYOTOBASED COMPANY A HEAVY EXPORTER OF ELECTRONICS AND COMPONENTS NOTABLY CERAMICS THAT ARE USED AS TINY PACKAGES FOR COMPUTER CHIPS US BULLS HAVE BEEN TALKING ABOUT A RECENT EXPLOSION AT A RIVAL COMPANY'S PLANT THAT PRODUCES A GLUEY RESIN USED IN SIMILAR PRODUCTS MADE OF PLASTIC THAT'S NO REASON FOR LONGTERM LOYALTY INDEED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE KYOCERA'S AMERICAN DEPOSITARY RECEIPTS CLOSED YESTERDAY AT 114 1/4 DOWN 1 ABOUT 20 OF KYOCERA IS HELD BY NONJAPANESE INVESTORS EACH ADR DENOTES TWO SHARES WEEKEND JAPANESE NEWS REPORTS SAID THAT CLOSELY HELD TELECOMMUNICATIONS COMPANY DDI CORP 25OWNED BY KYOCERA WOULD LIST ITS SHARES ON THE TOKYO EXCHANGE IN EARLY SEPTEMBER NEITHER KYOCERA NOR DDI WOULD CONFIRM THE STOCKLISTING REPORTS IN THE PAST THE DDI CONNECTION HAS BEEN ALLURING TO NONJAPANESE INVESTORS SUCH AS MARIO GABELLI OF NEW YORK WHO ACQUIRED SHARES A YEAR AGO AT MUCH LOWER PRICES THAN TODAY'S DDI OFFERS CELLULAR PHONE SERVICE AND COMPETES IN LONGDISTANCE WITH GIANT NIPPON TELEGRAPH & TELEPHONE MANY TECHNOLOGY ANALYSTS IN TOKYO AREN'T COUNTING ON KYOCERA'S SHARE PRICE TO RISE MUCH ABOVE 7000 YEN 6469 IN THE NEAR FUTURE AND SUGGEST PROFITTAKING COULD FORCE IT BACK TO AROUND 5500 WITHIN WEEKS OR MONTHS IT'S NOW QUOTED IN JAPAN AT 6230 OVER THE MEDIUM TO LONG TERM HOWEVER MOST OF THESE SAME ANALYSTS APPLAUD KYOCERA THEY SAY IT IS STRONG IN SEMICONDUCTORS AND TELECOMMUNICATIONS TWO THEMES FAVORED IN THE JAPANESE MARKET WHICH LOVES THEMES I'M RECOMMENDING A LONGTERM BUY ON KYOCERA SAYS ERIC GAN A TECHNOLOGY ANALYST WITH KLEINWORT BENSON INTERNATIONAL WHOSE ESTIMATES SHOW THE STOCK APPRECIATING 15 FROM ITS CURRENT LEVEL ON THE STRENGTH OF A POTENTIAL DDI LISTING ALONE KYOKO MURAKAMI OF LEHMAN BROTHERS ON THE OTHER HAND SEES KYOCERA AS CURRENTLY OVERVALUED AND RECOMMENDS BUYING ON WEAKNESS IN THE RANGE OF 5000 YEN TO 5500 YEN ANALYSTS SAY KYOCERA HAS TURNED THE CORNER AFTER DISAPPOINTING PERFORMANCE IN THE PAST TWO YEARS DURING WHICH SALES AND PROFIT BOTH SHRANK IN THE FISCAL YEAR ENDED MARCH 31 KYOCERA'S PROFIT FELL 15 TO 4219 BILLION YEN 38992 MILLION WHILE SALES DECLINED 48 TO 4316 BILLION YEN NOW HOWEVER THE COMPANY'S EARNINGS PROSPECTS ARE MUCH BETTER THAN EXPECTED SAYS OSAMU YASAKA DEPUTY GENERAL MANAGER OF THE EQUITY DEPARTMENT AT NIKKO SECURITIES HE PREDICTS PROFIT WILL RISE 26 THIS FISCAL YEAR AND JUMP 18 NEXT YEAR THE BULLS LIKE KYOCERA'S COMMANDING POSITION IN THE GROWING MARKET FOR CERAMIC CHIPPACKAGING MS MURAKAMI FOR INSTANCE ESTIMATES THAT KYOCERA HAS A 70 WORLD MARKET SHARE FOR SUCH PACKAGES CHIEFLY USED IN PRODUCTS SUCH AS INTEL'S HIGHEND PERSONALCOMPUTER MICROPROCESSORS SHE ADDS THAT SUCH PACKAGES COMPRISE JUST 22 OF KYOCERA'S SALES BUT NEARLY 40 OF ITS OPERATING PROFIT KYOCERA HAS ALSO SCORED A HIT WITH ITS NEW ECOSYS PAGE PRINTER WHICH IT CLAIMS IS BOTH FASTER AND MORE ENVIRONMENTFRIENDLY THAN LASER PRINTERS SALES OF THEIR ECOSYS PRINTER WILL BE 20 BILLION YEN THIS YEAR SAYS MR YASAKA NEXT YEAR IT WILL BE 30 BILLION THEN THERE ARE THE POTENTIAL REWARDS FROM KYOCERA'S TWO MAJOR AFFILIATED COMPANIES DDI AND ARCADE VIDEOGAME MAKER TAITO CORP WHICH IS 23 OWNED BY KYOCERA ANALYSTS SAY BOTH ARE POISED FOR STRONG GROWTH DDI FROM ITS LONGDISTANCE AND CELLULAR SERVICES AND TAITO FROM SUPPLYING JAPAN'S VIDEOARCADE BOOM WITH TAITO SCHEDULED TO LIST ITS STOCK ON AUG 5 AND RUMORS OF DDI DOING LIKEWISE KYOCERA COULD SEE ITS TOTAL STOCKMARKET VALUE INCREASE MORE THAN 8 SOME ANALYSTS SAY KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN EXPECTS THE YEN TO WEAKEN TO A LEVEL OF 115 TO THE DOLLAR WITHIN SIX TO 12 MONTHS A WEAKER YEN HELPS JAPANESE EXPORTERS SUCH AS KYOCERA BY REDUCING THEIR PRODUCT PRICES IN DOLLAR TERMS WHAT'S MORE SHE SAYS KYOCERA TRADES AT A PRICEEARNINGS MULTIPLE OF 34 FOR THIS YEAR AND 27 AGAINST NEXT YEAR'S EXPECTED EARNINGS IN A MARKET WHERE THE OVERALL CURRENT MULTIPLE IS ABOVE 70 NOT EVERYBODY IS A LONGTERM BULL ON KYOCERA CHUCK GOTO OF SG WARBURG JAPAN RECOMMENDS SELLING THE STOCK HE CITES KYOCERA'S DIVERSIFICATION AND THE COMPETITIVE THREAT TO KYOCERA'S CERAMIC CHIPPACKAGING BUSINESS POSED BY MAKERS OF PLASTIC PACKAGING KYOCERA IS LIKE A MINICONGLOMERATE HE SAYS THEY HAVE TOO MANY PRODUCTS AND TOO MANY DISTRIBUTION PRODUCTION AND R&D REQUIREMENTS 9307220027 930722 MOVIES STRANGE BEINGS RARELY IN THEATERS' NEW FILMS LURE INFREQUENT MOVIEGOERS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD THE MATINEES ARE JUST STARTING AT AMC'S 14SCREEN MULTIPLEX HERE AND THE PLACE IS JAMMED WITH PEOPLE WHOM STUDIO EXECUTIVES CALL INFREQUENT MOVIEGOERS STUDIOS MAY WELL HAVE A RECORD SUMMER AT THE BOX OFFICE IN PART BECAUSE PEOPLE LIKE MS DESMORE A TEACHER WHO LIVES IN SANTA ANA CALIF ARE GOING TO THE MOVIES AGAIN TICKET SALES HAVE BEEN ROUGHLY MATCHING THE RECORD PACE OF 1989 LEADING HOLLYWOOD EXECUTIVES TO CONCLUDE THAT THE MARKETPLACE HAS EXPANDED THE NUMBERS SUGGEST THAT MANY PEOPLE WHO NORMALLY CAN'T BE DRAGGED TO MOVIE THEATERS HAVE AT LEAST FOR THE MOMENT CHANGED THEIR WAYS WE USED TO GO OUT A LOT BUT NOW WE HAVE A SATELLITE AND WE BRING THE MOVIES IN MS DESMORE SAYS BUT THIS SUMMER SEEMS DIFFERENT THERE ARE A COUPLE OF GOOD MOVIES OUT THAT WE'D LIKE TO SEE STATISTICS COMPILED BY THE MOTION PICTURE ASSOCIATION OF AMERICA SHOW THAT THE MOST FREQUENT MOVIEGOERS ARE SINGLE WHITE MALES UNDER THE AGE OF 30 BUT INFREQUENT MOVIEGOERS TYPICALLY THOSE 30 AND OVER WHO GO OUT ONCE A YEAR OR EVEN LESS CONSTITUTE A LARGE AND GROWING POOL WAITING TO BE TAPPED APPEALING TO THESE STAYATHOMES HAS BECOME EVEN MORE IMPORTANT IN RECENT YEARS AS THE AMOUNT OF REPEAT MOVIEGOING BY THE MOST LOYAL TICKET BUYERS HAS DECLINED BECAUSE OF HIGHER TICKET PRICES AND HOME VIDEO STUDIOS CAN'T COUNT ON TEENAGERS TO RETURN TO SEE THEIR FAVORITE FILMS AS MANY TIMES AS THEY ONCE DID IN ADDITION TO A SURGE BY INFREQUENT MOVIEGOERS STUDIO RESEARCH EXECUTIVES SAY THEY SEE SIGNS THAT PEOPLE WHO GO TO THE MOVIES WITH MODERATE FREQUENCY ARE LINING UP TO SEE MORE FILMS THIS SUMMER THAN IN THE RECENT PAST ONE THEORY HAS IT THAT BABY BOOMERS INCREASINGLY ARE TAKING THEIR CHILDREN TO A FAMILY MOVIE ONE DAY AND THEN RETURNING TO AN ADULT MOVIE WITHOUT THE KIDS THE NEXT IN RECENT YEARS THOSE MOVIEGOERS HAVE DONE ONE OR THE OTHER BUT RARELY BOTH IT'S TOO EARLY TO TELL JUST WHAT PORTION OF THE SUMMER AUDIENCE CAN BE CLASSIFIED AS INFREQUENT BUT MANY INDUSTRY ANALYSTS EXPRESS DOUBT THAT THE TREND CAN BE EASILY MAINTAINED EVERY TIME THERE'S A RASH OF BIGTIME BREAKTHROUGH RELEASES THE STUDIOS SAY THERE ARE LONGTERM CHANGES AFOOT SAYS JOHN SUHLER PRESIDENT OF VERONIS SUHLER & ASSOCIATES INC A NEW YORK INVESTMENTBANKING FIRM THAT TRACKS THE ENTERTAINMENT INDUSTRY BUT IT NEVER ENDS UP MOVING THE NEEDLE MUCH AT THE END OF THE DAY THAT HASN'T STOPPED STUDIO EXECUTIVES FROM TRYING TO DETERMINE JUST HOW THEY SUCCEEDED THIS SUMMER AND HOW THEY MIGHT DO IT AGAIN UNIVERSAL PICTURES FOR ONE SAYS THE HIGH GROSSES FOR ITS JURASSIC PARK ALREADY MORE THAN 260 MILLION IN THE US ALONE WITHOUT QUESTION INDICATE THAT A HIGH NUMBER OF INFREQUENT MOVIEGOERS ARE BUYING TICKETS WE'RE REACHING A LOT OF PEOPLE WHO ONLY GO TO THE MOVIES WHEN THEY PERCEIVE A FILM AS AN EVENT SAYS PERRY KATZ SENIOR VICE PRESIDENT OF MARKETING AT UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA MANY EXECUTIVES SAY THE SHEER NUMBER AND MIX OF OTHER WELLREVIEWED POPULAR FILMS THIS SUMMER LIKE COLUMBIA PICTURES' IN THE LINE OF FIRE WALT DISNEY CO'S WHAT'S LOVE GOT TO DO WITH IT AND TRISTAR PICTURES' SLEEPLESS IN SEATTLE HAVE DRAWN OUT MANY PEOPLE WHO RARELY GO TO THE MOVIES COLUMBIA AND TRISTAR ARE UNITS OF SONY CORP FOR MANY INFREQUENT FILMGOERS INCLUDING COUPLES WITH CHILDREN THE RISK OF A SOLDOUT SHOW CAN BE ENOUGH TO KEEP THEM AWAY BUT THIS SUMMER THEY HAVE SOMETHING OF AN INSURANCE POLICY BECAUSE THERE'S OFTEN MORE THAN ONE MOVIE THEY WOULD BE HAPPY TO SEE ALSO MORE THEATERS LET PEOPLE RESERVE TICKETS BY PHONE THE FIRM WHICH YESTERDAY HIT 100 MILLION IN TICKET SALES IS ON MANY MUSTSEE LISTS EXECUTIVES AT PARAMOUNT PICTURES SAY THEY'RE ASTONISHED THAT IT TOOK ONLY 22 DAYS FOR THE TOM CRUISE MOVIE TO REACH THAT BLOCKBUSTER LEVEL TYPICALLY MOVIES THAT SCORE SO QUICKLY ARE ACTION FILMS THAT APPEAL TO TEENAGE BOYS LIKE THE INDIANA JONES MOVIES NOT ONLY THAT BUT THE FIRM' IS A 2 1/2HOUR RRATED THRILLER SAYS BARRY LONDON PRESIDENT OF PARAMOUNT'S MOTIONPICTURE GROUP AT THAT LENGTH THEATERS CAN SHOW IT ONLY FOUR TIMES A DAY INSTEAD OF THE NORMAL FIVE PARAMOUNT IS A UNIT OF PARAMOUNT COMMUNICATIONS INC WHAT'S AMAZING MR LONDON SAYS IS THAT 20 OF THE AUDIENCE FOR THE FIRM IS 45 TO 59 YEARS OLD THIS FILM IN A WAY IS ESTABLISHING A WHOLE NEW SET OF RULES FOR THIS OLDER DEMOGRAPHIC GROUP HE SAYS PEOPLE ARE TALKING ABOUT THIS MOVIE AT PARTIES AND THOSE WHO HAVEN'T SEEN IT WANT TO BE A PART OF WHAT'S GOING ON IT'S BECOME FASHIONABLE TO GO THAT THE MOVIE IS BASED ON A BESTSELLING JOHN GRISHAM NOVEL DOESN'T HURT EITHER HE SAYS THE SLUGGISH ECONOMY IS ALSO PLAYING A PART LURING SOME INFREQUENT MOVIEGOERS IN SEARCH OF A DIVERSION LORA WALKER WHO LIVES IN LOS ANGELES HASN'T BEEN TO A MOVIE IN A WHILE IN PART BECAUSE SHE'S UNEMPLOYED BUT SHE SAYS SHE BOUGHT A TICKET TO SLEEPLESS IN SEATTLE FOR A SIMPLE REASON MY DAUGHTER SAW IT AND RECOMMENDED IT TO ME SHE SAYS ADDING I JUST REALLY NEEDED A COMEDY TODAY THE ADDED AUDIENCE IS COMING AT A PRICE STUDIOS' MARKETING BUDGETS ARE WAY UP THIS SUMMER EXECUTIVES SAY SO PROFITS WILL BE HARDER TO COME BY MOREOVER STUDIOS HAVE SPONSORED MORE SNEAK PREVIEWS OF MOVIES THAN EVER BEFORE THIS YEAR MOSTLY BECAUSE THEY HAVE BEEN FRIGHTENED THAT THEIR FILMS WILL GO UNNOTICED AT CROWDED MULTIPLEXES BUT SNEAK PREVIEWS COST STUDIOS 1 MILLION TO 3 MILLION A POP SIGNIFICANTLY INCREASING OVERALL COSTS HOLLYWOOD EXECUTIVES HOPE BUSINESS WON'T WILT IN AUGUST AS IT HAS IN RECENT SUMMERS FOR NOW THEY SAY THE HITS HAVE BEEN HOLDING UP WELL EACH WEEKEND POSTING ONLY MINIMAL WEEKTOWEEK DECLINES IN TICKET SALES AND OTHER MOVIES INCLUDING JOHN SINGLETON'S POETIC JUSTICE FROM COLUMBIA WHICH OPENS THIS WEEKEND HAVE HIGH AWARENESS AND ARE EXPECTED TO HAVE BIG OPENINGS STUDIOS ARE OPTIMISTIC THAT INFREQUENT MOVIEGOERS WILL BE INTERESTED IN A NUMBER OF LATESUMMER PICTURES INCLUDING THE FUGITIVE A HARRISON FORD MOVIE FROM TIME WARNER INC'S WARNER BROS STUDIO BASED ON THE 1960S DAVID JANSSEN TV SERIES AND UNIVERSAL'S HEART AND SOULS A COMEDY STARRING ROBERT DOWNEY JR AS A GUY WHOSE LIFE IS MESSED UP WHEN THE SOULS OF FOUR DEAD PEOPLE BORROW HIS BODY TO FULFILL THE DREAMS THEY LEFT UNFINISHED A HEFTY OPENING IS ALSO EXPECTED FOR RISING SUN A THRILLER BASED ON THE MICHAEL CRICHTON NOVEL AND STARRING WESLEY SNIPES AND SEAN CONNERY FROM NEWS CORP'S FOX STUDIO THEATER OWNERS ALSO ARE OPTIMISTIC ABOUT THE REST OF THE SUMMER THEY SAY THAT GETTING INFREQUENT FILMGOERS IN THE DOOR JUST ONCE IS A POWERFUL THING BECAUSE THAT EXPOSES THEM TO PREVIEWS FOR PERHAPS A HALFDOZEN OTHER FILMS ENCOURAGING THEM TO COME BACK AT LOEWS THEATRES COCHAIRWOMAN BARRIE LOEKS SAYS A LOOK AROUND THE LOBBIES SUGGESTS THAT SOME INFREQUENT FILMGOERS ARE INDEED TURNING INTO REPEAT VISITORS THAT CHAIN WHICH LIKE OTHERS IS BREAKING HOUSE BOXOFFICE RECORDS JUST BEGAN A PROMOTION IN WHICH ITS USHERS WELCOME MOVIEGOERS HAND THEM FREE MINTS ON THE WAY OUT AND GUARANTEE FREE COKES TO PEOPLE WHO WAIT AT THE CONCESSION STAND MORE THAN THREE MINUTES WITH BOXOFFICE RESULTS SOARING MS LOEKS SAYS THE LINES AT THE HIGHLY PROFITABLE CONCESSION STANDS HAVE BEEN UNUSUALLY LONG WE'RE HANDING OUT A LOT OF FREE COKES SHE SAYS 9307220026 930722 A BAD BUY BANKAMERICA FINDS IT GOT A LOT OF WOE WITH SECURITY PACIFIC IN RAPID ACQUISITION'S WAKE RETURN ON ASSETS LAGS BUT IT STILL DEFENDS DEAL AN EXPLOSIVE CULTURE CLASH BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO BANKAMERICA CORP WHICH LENT ITS WAY INTO TROUBLE IN THE 1980S IS FINDING IT ALSO CAN BUY TROUBLE IN APRIL 1991 BANKAMERICA CHAIRMAN RICHARD ROSENBERG MISSED A POSSIBLE COUP A CHANCE TO ACQUIRE BANK OF NEW ENGLAND CORP DETERMINED NOT TO MISS THE NEXT ONE HE ENTERED NEGOTIATIONS A FEW MONTHS LATER WITH SECURITY PACIFIC CORP AND EMERGED UNUSUALLY QUICKLY WITH AN IRONCLAD DEAL ALTHOUGH IT WAS THE BIGGEST BANK MERGER IN US HISTORY NEGOTIATING IT TOOK LESS THAN A MONTH A FEW BANKAMERICA AIDES HOLED UP IN LOS ANGELES HOTELS UNDER ASSUMED NAMES BARELY HAD TIME TO SKIM THROUGH SECURITY PACIFIC'S BOOKS IN ADDITION MR ROSENBERG PERSUADED SECURITY PACIFIC CHAIRMAN ROBERT SMITH TO HOLD OFF OTHER PROSPECTIVE SUITORS AND TO REJECT COMPETING OFFERS ONCE THE DEAL WAS ANNOUNCED MR SMITH AGREED ON THE CONDITION THAT UNDER VIRTUALLY NO CIRCUMSTANCES COULD BANKAMERICA BACK OUT OF THE DEAL OR REVISE THE 46 BILLION PRICE THAT REMARKABLE CONCESSION COUPLED WITH EQUALLY REMARKABLE MISJUDGMENTS ABOUT SECURITY PACIFIC'S WEAKNESSES HAS HELPED BLIGHT MR ROSENBERG'S COUP IN ONLY TWO YEARS A SERIES OF POSTMERGER LOAN WRITEDOWNS AND OTHER NASTY SURPRISES SUCH AS UNAUTHORIZED AND POSSIBLY ILLEGAL USE OF CUSTOMER FUNDS IN A NEW YORKBASED TRUST UNIT HAS TRIGGERED ACCOUNTING CHARGES OF 35 BILLION THE CHARGES HAVE RAISED THE EFFECTIVE PURCHASE PRICE TO 81 BILLION ADDING PRESSURE TO CUT COSTS AND ERODING CAPITAL NEEDED FOR FURTHER EXPANSION THE KEY MEASURE OF OPERATING EFFICIENCY RETURN ON ASSETS HASN'T BUDGED IN CONTRAST TO A 39 SURGE AT CHEMICAL BANKING CORP SINCE ITS DECEMBER 1991 MERGER WITH MANUFACTURERS HANOVER CORP THOMAS HANLEY A FIRST BOSTON ANALYST WHO AT FIRST CALLED THE MERGER BRILLIANT NOW CONSIDERS IT A DISAPPOINTMENT HE NOTES THAT BANKAMERICA'S STOCK IS UP ONLY 12 SINCE THE DEAL WAS STRUCK WHILE OTHER REGIONAL BANKS' SHARES HAVE RISEN AN AVERAGE OF 40 BANKAMERICA'S SECONDQUARTER EARNINGS ARE DUE TO BE RELEASED TODAY AND ANALYSTS EXPECT THEM TO BE FLAT IN CONTRAST TO STRONG GAINS POSTED BY THE BANK'S MAIN COMPETITORS BANKAMERICA OFFICIALS SAY THE STOCK HAS LAGGED BECAUSE OF CALIFORNIA'S RECESSION AND BECAUSE THE MERGER HAS CONFUSED INVESTORS AND DISTRACTED EMPLOYEES CAUGHT UP IN ITS AFTERMATH INDEED BANKAMERICA HAS FORCED OUT SO MANY FORMER SECURITY PACIFIC OFFICIALS THAT SOME ASSAIL IT AS ETHNIC CLEANSING WHAT WAS INITIALLY STRUCTURED AND PORTRAYED AS A MERGER OF EQUALS HAS DEGENERATED INTO WHAT MANY ON THE SECURITY PACIFIC SIDE CONSIDER AN AFTERTHEFACT HOSTILE TAKEOVER NEVERTHELESS BANKAMERICA HAS CLEARLY ASSEMBLED AN AWESOME FRANCHISE ONE THAT COULD PUMP BIG PROFITS ONCE THE ECONOMY STRENGTHENS THROUGH 1959 BRANCHES THE NATION'S SECONDLARGEST BANK SERVES MORE THAN HALF OF CALIFORNIA'S HOUSEHOLDS PLUS CONSUMERS IN NINE OTHER WESTERN STATES IT CALCULATES THAT IT ELICITS 65 MILLION CUSTOMER TOUCHES A MONTH ANALYSTS EXPECT THE BANK USING ITS MARKET CLOUT EVENTUALLY TO FIND WAYS TO BOMBARD CONSUMERS WITH FEES ALTHOUGH A LOT OF STOCK WAS ISSUED IN THE MERGER MERRILL LYNCH THINKS THE BANK'S PERSHARE PROFIT SLUMP WILL END LATER THIS YEAR RISING 9 TO 530 IN 1993 AND 17 TO 620 NEXT YEAR EARNINGS MIGHT REBOUND EVEN FURTHER IF BANKAMERICA OVERRESERVED FOR THE MERGER COSTS AS IT DID WITH LOAN LOSSES IN 1980S IN AN INTERVIEW MR ROSENBERG A JOVIAL MAN KNOWN FOR HIS MARKETING SAVVY TALKS OF CONSUMER BANKING'S NEW FRONTIERS OF MUTUAL FUNDS AND INSURANCE OF INTERACTIVEBANKING SERVICES OF BRANCHES COASTTOCOAST HE CONTENDS THAT IT IS TOO SOON TO EVALUATE THE MERGER ALTHOUGH HE SAYS THE COST SAVINGS EXPECTED TO HIT 12 BILLION ANNUALLY IN 1995 ARE AHEAD OF SCHEDULE THE REAL TEST IS GOING TO COME IN THE NINTH INNING AND WE ARE PROBABLY IN THE THIRD MR ROSENBERG SAYS ADDING THAT HE WASN'T BLINDSIDED BY SECURITY PACIFIC'S PROBLEMS BUT BY THE SEVERITY OF THE RECENT RECESSION ALONG WITH EVERYONE ELSE YET THE DISPARITY BETWEEN BANKAMERICA'S POSTMERGER RESULTS AND THOSE OF COMPETITORS DURING THE SAME RECESSIONARY PERIOD SUGGESTS TO SOME THAT BANKAMERICA FAILED TO FULLY COMPREHEND SECURITY PACIFIC'S CONDITION THAT FAILURE MAY HAVE FLOWED IN PART FROM THE STARK DIFFERENCES IN THE TWO BANKS' CORPORATE CULTURES BANKAMERICA HAS BEEN CENTRALIZED RULEBOUND AND ULTRACONSERVATIVE SINCE ITS MID1980S LOAN DEBACLES SECURITY WAS DECENTRALIZED AND FREEWHEELING EVEN DURING THE EIGHT MONTHS NEEDED TO OBTAIN REGULATORY APPROVALS AND PUT THE MERGER INTO EFFECT IN APRIL 1992 SIGNS OF TROUBLE BEGAN POPPING UP LITTLE RED FLAGS THAT HAD GONE UNNOTICED DURING THE ONCEOVERLIGHTLY SEARCH FOR BIG RED FLAGS WHILE THE DEAL WAS BEING CEMENTED SOME SECURITY PACIFIC LOANS NEVER SHOULD HAVE BEEN MADE AT ALL HAL INC HAWAIIAN AIRLINES' PARENT HAD BORROWED ABOUT 125 MILLION BY VIRTUE OF HAL INVESTOR PETER UEBERROTH'S FRIENDSHIP WITH THE BANK'S LATE CHAIRMAN RICHARD FLAMSON AND CONTRARY TO LENDING OFFICERS' ADVICE BANKAMERICA KNEW THAT THAT LOAN WOULD BE LARGELY WRITTEN OFF BUT THE BANK SHOULD HAVE TAKEN IT AS A SIGNAL OF SECURITY PACIFIC'S HAPHAZARD APPROACH TO LENDING IN ADDITION SECURITY PACIFIC UNLIKE BANKAMERICA HAD BET HEAVILY ON COMMERCIAL REAL ESTATE WHICH WAS JUST BEGINNING TO TURN SOUR AMONG ITS BIG PROBLEMS A FORMER OFFICIAL SAYS WERE SPECULATIVE LAND LOANS TO DEVELOPERS SUCH AS WILLIAM LYON AND GEORGE ARGYROS CREDIT CONTROLS WERE SURPRISINGLY WEAK IN SECURITY PACIFIC'S MANY AUTONOMOUS LENDING UNITS FOR EXAMPLE NORTHERN AUTOMOTIVE A NOWSTRUGGLING AUTOPARTS CHAIN HAD CIRCUMVENTED NORMAL LENDING LIMITS BY OBTAINING LOANS TOTALING 25 MILLION FROM THREE SEPARATE SECURITY PACIFIC UNITS SOME LOANS HAD SO LITTLE SUPPORTING DOCUMENTATION THAT THEY WERE CLASSIFIED AS UNCOLLECTIBLE ACCORDING TO ONE MANAGER WHO SAYS HE PERSONALLY FOUND AT LEAST 100 MILLION OF SUCH DEALS A DOZEN LAWYERS SPENT MONTHS DECIDING HOW TO HANDLE EACH OF SEVERAL THOUSAND LAWSUITS AND SETTING UP RESERVES FOR THEM SAYS WINSLOW CHRISTIAN A FORMER BANKAMERICA ATTORNEY THE BANK QUICKLY SETTLED SOME LONGSTANDING SUITS ONE LENDERLIABILITY SUIT BROUGHT IN 1989 BY INOVISION CORP FORMERLY VESTRON INC WAS SETTLED FOR 100 MILLION ACCORDING TO INOVISION FAR MORE THAN BANKAMERICA HAD PROJECTED EMBARRASSING DISCLOSURES HAVE BECOME ALMOST ROUTINE IN MARCH BANKAMERICA SAID SECURITY'S PERSONALTRUST DEPARTMENT HAD IMPROPERLY OVERCHARGED SOME CUSTOMERS A PRACTICE THAT IT SAID WOULD COST 50 MILLION TO STRAIGHTEN OUT IN APRIL BANKAMERICA ACKNOWLEDGED POSSIBLE VIOLATIONS OF PENSIONFUND MANAGEMENT LAWS AT SEQUOR GROUP SECURITY'S NEW YORKBASED CORPORATETRUST OPERATION BANKAMERICA SAYS REGULATORS ARE INVESTIGATING BUT IT DEEMS REGULATORY ACTION UNLIKELY IT HAS REMOVED MORE THAN 30 SEQUOR MANAGERS AND ANNOUNCED A 3 MILLION REFUND TO SOME SEQUOR CUSTOMERS FOR UNAUTHORIZED TRADING AND INVESTMENTS SOCALLED PURCHASE ACCOUNTING MAY HAVE MUFFLED THESE AFTERSHOCKS THIS BOOKKEEPING METHOD UNUSUAL IN A STOCKSWAP MERGER ALLOWS ANY LOSS RECOGNIZED WITHIN A YEAR OF THE ACQUISITION TO GO ON THE BALANCE SHEET AS GOODWILL AND BE WRITTEN OFF OVER 25 YEARS RATHER THAN AS ONETIME STOCKRATTLING EARNINGS HITS BUT THE ACCOUNTING PRACTICE HAS ITS COSTS IT CONFUSES SOME INVESTORS ALSO THE GOODWILL CHARGES PLUS OTHER RECURRING MERGERRELATED WRITEOFFS AMOUNT TO 130 MILLION A QUARTER CANCELING MORE THAN HALF THE COST SAVINGS REALIZED FURTHERMORE GOODWILL MUST BE SUBTRACTED IMMEDIATELY FROM CAPITAL WHICH REGULATORS REQUIRE BANKS TO MAINTAIN AT CERTAIN LEVELS AS A CUSHION AGAINST LOSSES AND AS MORE AND MORE SECURITY PACIFIC MISTAKES BUBBLED UP BANKAMERICA OFFICIALS SHOWED LESS AND LESS RESPECT TOWARD THEIR NEW COLLEAGUES ONE OF THE FIRST TO FEEL THIS LACK OF RESPECT WAS MR SMITH HIMSELF AS BANKAMERICA'S PRESIDENT AND CHIEF OPERATING OFFICER HE SHARED A NEWLY FORMED OFFICE OF THE CHAIRMAN WITH MR ROSENBERG AND WAS SUPPOSEDLY A CONTENDER TO SUCCEED HIM EVENTUALLY BUT WITHIN TWO WEEKS AFTER THE MERGER CLOSED MR SMITH FOUND HIMSELF WITH NOTHING TO DO WHAT IS MORE PEOPLE CLOSE TO MR SMITH SAY MR ROSENBERG SOON TOLD MR SMITH THAT HE WOULD NEVER GET THE TOP SPOT AT BANKAMERICA BECAUSE THE BANK'S REGULATORS BLAMED MR SMITH FOR SECURITY PACIFIC'S DETERIORATION MR SMITH HIS ASSOCIATES SAY WAS STUNNED BOTH BY THIS ASSERTION AND BY THE FACT MR ROSENBERG APPARENTLY HAD NEGLECTED TO SPEAK UP FOR HIM BOTH DECLINE TO COMMENT IN JUNE 1992 MR SMITH SAID HE WOULD RESIGN HE FLOATED OFF WITH A 3 MILLION GOLDEN PARACHUTE ALTHOUGH MOST TAKEOVERS INVOLVE SOME DISMISSALS SECURITY PACIFIC OFFICIALS SAY THEIR DEAL HINGED ON A GENTLEMEN'S AGREEMENT TO SHARE POWER AT THE TOP THEY NOTE TERMS CALLING FOR A 5050 BOARD SPLIT AND THE NAMING OF SECURITY PACIFIC PEOPLE TO FOUR OF THE TOP 10 MANAGERIAL POSITIONS YET ALMOST IMMEDIATELY MR ROSENBERG AND HIS TOP AIDES UNDERCUT THIS AGREEMENT PEOPLE FROM BOTH BANKS SAY THREE OF THE TOP FOUR SECURITY PACIFIC MANAGERS INCLUDING MR SMITH ARE GONE AND THE BOARD IS WEIGHTED TWOTOONE IN FAVOR OF BANKAMERICA PARTLY BECAUSE BANKAMERICA LOWERED THE DIRECTORS' RETIREMENT AGE AFTER THE DEAL WAS DONE THROUGH A SPOKESMAN MR ROSENBERG DECLINED TO COMMENT ON THE ISSUE OF A GENTLEMAN'S AGREEMENT AND REFERRED A REPORTER TO THE BANK'S PRESS RELEASE ANNOUNCING THE MERGER MR ROSENBERG ALSO DENIED BANKAMERICA HARBORED ANY INSTITUTIONAL BIAS TOWARD SECURITY PACIFIC AFTER THE MERGER THE BEST PERSON FROM EITHER BANK WAS SELECTED FOR A GIVEN JOB HE SAID THROUGH THE SPOKESMAN IN THE MONTHS FOLLOWING MR SMITH'S ANNOUNCED DEPARTURE DOZENS OF SECURITY PACIFIC EXECUTIVES WERE FORCED OUT OR RESIGNED IN DESPAIR MOST INSULTING OF ALL THE FORMER MANAGERS SAY WAS MICHAEL ROSSI CHIEF CREDIT OFFICER MR ROSSI IS A FIERCE COMPETITOR KNOWN TO MANHANDLE STAFFERS ON THE BASKETBALL COURT AND A HARDNOSED BUSINESSMAN AT ORIENTATION SESSIONS KNOWN AS CAMP ROSSI TO THE 2000 SECURITY PACIFIC EMPLOYEES WHO ATTENDED MR ROSSI ASSAILED THEIR BANK'S LAX POLICIES AND MARGINAL BORROWERS AT ONE MEETING WHEN NO ONE RESPONDED TO HIS CALL FOR QUESTIONS MR ROSSI QUIPPED WHAT IS THIS A DUMB GROUP ACCORDING TO CHUCK LIVINGSTONE A FORMER MANAGER WHO ATTENDED A STORY ALSO CIRCULATES THROUGH THE RANKS OF HOW AT ANOTHER MEETING HE ASKED EVERYONE TO WAVE THEIR RIGHT HANDS IN THE AIR AND EXPLAINED THE KEY TO YOUR SUCCESS AT BANKAMERICA IS GETTING USED TO SAYING GOODBYE TO SECURITY PACIFIC CUSTOMERS MR ROSSI DENIES MAKING EITHER STATEMENT I AM CONFRONTATIONAL HE SAYS BUT I NEVER HAD ANY INTENT TO INSULT THE ANIMUS FELT BY SECURITY PACIFIC MANAGERS LED TO SO MANY DEPARTURES THAT NOW BANKAMERICA IS RECRUITING TO FILL HOLES ON ITS SENIOR STAFF WHICH SOME ANALYSTS CONSIDER THIN OTHER FORMER SECURITY PACIFIC EMPLOYEES SAY THEY HAVEN'T ENCOUNTERED HOSTILITY AT BANKAMERICA FRANK ABRAHAM A SENIOR CREDIT MANAGER SAYS I'M HAPPY I GOT SIGNIFICANT NEW RESPONSIBILITIES AND A PROMOTIONAL OPPORTUNITY I WOULDN'T BE HERE IF I FELT I WAS BLAMED FOR SECURITY PACIFIC'S PROBLEMS AS BANKAMERICA SLASHED PERSONNEL COSTS ELIMINATING THE EQUIVALENT OF 10000 FULLTIME JOBS IT WAS ACCUSED OF TRYING TO AVOID PAYING SEVERANCE BY FORCING ABOUT 20 SECURITY PACIFIC PERSONNELDEPARTMENT PROGRAMMERS TO TAKE TEMPORARY JOBS AT A CONSULTING FIRM IT RELENTED AFTER A PROTEST THE BANK DENIES THE PROPOSED MOVES WERE A BID TO SKIRT ITS OBLIGATIONS AND SAYS IT GENERALLY PAYS SEVERANCE IN SUCH CASES IN ADDITION BRANCH EMPLOYEES IN WASHINGTON STATE ON BEHALF OF 344 COLLEAGUES HAVE ALLEGED IN A COMPLAINT FILED IN A SEATTLE FEDERAL COURT THAT BANKAMERICA BREACHED ITS FIDUCIARY DUTY IN DENYING THEM SEVERANCE WHEN IT SOLD THEIR BRANCHES THE BANK SAYS THE EMPLOYEES WERE GUARANTEED COMPARABLE JOBS AND BENEFITS WITH THEIR NEW EMPLOYERS IN LIEU OF SEVERANCE THE VARIOUS CUTBACKS CAUSED MORALE TO DROP MAKING MATTERS WORSE BANK EMPLOYEES LEARNED FROM NEWSPAPER REPORTS THAT JUST 19 OF ALL BRANCH EMPLOYEES WOULD RETAIN FULLTIME JOBS AND FULLY PAID BENEFITS MORALE IS NOWHERE NEAR AS GOOD AS WE WOULD LIKE TO SEE IT IT'S PROBABLY NO BETTER THAN FAIR SAID CHIEF FINANCIAL OFFICER LEWIS COLEMAN MANY FORMER SECURITY EMPLOYEES STILL FUME OVER THE MERGEROFEQUALS TALK WHILE IT MAY HAVE HELPED TO PREVENT A MASS EXODUS AND DISRUPTION OF BUSINESS THEY SEE IT AS DISHONEST IN MERGERS PEOPLE HAVE TO BE LET GO SAYS STEPHEN CARPENTER A FORMER SECURITY PACIFIC VICE CHAIRMAN AND AMONG THE FIRST TO DEPART BUT MANY PEOPLE FELT THEY WERE LIED TO AND THAT MAKES THE PAIN OF LOSING YOUR CAREER GREATER I DON'T KNOW HOW THOSE FOLKS SHAVE IN THE MORNING THE TURMOIL HAS AFFECTED BANK CUSTOMERS US FILTER CORP SAID IT SWITCHED TO FIRST INTERSTATE BANCORP AFTER BANKAMERICA REFUSED TO ACCEPT SECURITY PACIFIC'S PAPERWORK THEREBY CAUSING MONTHS OF DELAY IN SECURING A CREDIT LINE THE MEN'S WEARHOUSE TURNED TO NATIONSBANK PARTLY BECAUSE IT HAD QUALMS ABOUT BANKAMERICA'S CUSTOMER SERVICE AND THE SOFTWARE SUPERMARKET SAID IT SWITCHED AFTER BANKAMERICA CANCELED OVERDRAFT PROTECTION CHARGED EXCESSIVE FEES AND CALLED A LOAN WITHOUT EXPLANATION THOUGH DECLINING TO DISCUSS SPECIFIC CUSTOMERS BANKAMERICA SAYS ITS RETENTION OF SECURITY PACIFIC CUSTOMERS AT 96 EXCEEDS EXPECTATIONS IT HAS BEEN HELPED BY AN UNPUBLICIZED POLICY OF PAYING 100 ON THE SPOT TO APPEASE DISGRUNTLED CUSTOMERS SOME OF WHOM HAVE CASHED IN AT SEVERAL BRANCHES WITH SECURITY PACIFIC NOW LARGELY DIGESTED BANKAMERICA'S MOST PRESSING CHALLENGE IS TO REVERSE A SLUMP IN REVENUES THE BANK SAYS IT INTENDS TO ACCOMPLISH THIS BY GIVING LOAN OFFICERS MORE LATITUDE AND GETTING MORE BUSINESS FROM EACH CUSTOMER OUR SHARE OF THE CUSTOMER WALLET IS ABOUT HALF WHAT IT USED TO BE AND WE HAVE TO FUNDAMENTALLY REVERSE THAT DECLINE SAYS MR COLEMAN MR ROSENBERG'S LIKELY SUCCESSOR THAT MEANS TAKING BACK GROUND CEDED TO SECURITIES FIRMS CONSUMER FINANCE COMPANIES MORTGAGE BANKS AND OTHERS MR ROSENBERG THINKS THE SECURITY PACIFIC PURCHASE GIVES BANKAMERICA A CRITICAL MASS OF CONSUMERS THAT WILL THROW OFF HUGE REVENUES DOES HE HAVE ANY REGRETS ABOUT HIS HASTY BARGAIN MR ROSENBERG LAUGHS THAT'S A REALLY GOOD QUESTION I NEVER THOUGHT ABOUT IT IN THOSE TERMS BUT CERTAINLY THERE IS NO BUYER'S REMORSE HE SAYS LAUGHING AGAIN NO OH NO 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 9307220025 930722 WHAT'S NEWS BUSINESS AND FINANCE THE FTC FAILED AGAIN TO REACH A CONCLUSION ON ALLEGATIONS THAT MICROSOFT UNFAIRLY USES ITS DOMINANT MARKET POWER AGAINST COMPETITORS THAT LED THE COMPANY TO DECLARE A QUALIFIED VICTORY IN THE THREEYEAROLD INVESTIGATION THE PANEL SPLIT 22 ON WHETHER TO ACCEPT STAFF RECOMMENDATIONS THAT IT TAKE ACTION AGAINST MICROSOFT THE TIE VOTE MEANS THE COMPANY MAY CONTINUE OPERATING AS IT HAS AT&T IS EXPECTED TO ANNOUNCE TODAY A HIGHLEVEL MANAGEMENT REORGANIZATION ACCORDING TO INDIVIDUALS CLOSE TO THE COMPANY RICHARD MILLER FORMER CHAIRMAN OF WANG LABS IS EXPECTED TO BE NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AMR POSTED A PROFIT FOR THE FIRST TIME SINCE THE FALL OF 1991 THE AMERICAN AIR PARENT'S SECONDQUARTER RESULTS SIGNAL A SLOW BUT DEFINITE IMPROVEMENT IN THE AIRLINE INDUSTRY THE DOW JONES INDUSTRIALS CLIMBED 1062 POINTS TO A RECORD 355540 BUT BOND PRICES TUMBLED ON CONCERNS ABOUT THE DEFICIT REDUCTION PACKAGE THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR BOND PLUNGED MORE THAN 7/8 POINT ITS YIELD ROSE TO 662 COCACOLA IS BRINGING BACK SERGIO ZYMAN THE BOLD MARKETING EXECUTIVE WHO LEFT UNDER A CLOUD SHORTLY AFTER THE NEW COKE FIASCO TO ONCE AGAIN HEAD UP ITS MARKETING EFFORTS JOSEPH PERELLA IS TALKING AGAIN ABOUT QUITTING HIS JOB AS CHAIRMAN OF WASSERSTEIN PERELLA AS THE INVESTMENT BANK TRIES TO BOUNCE BACK FROM A DROP IN ITS CORE MERGER ADVISORY BUSINESS AND DIVERSIFY INTO OTHER AREAS COMPAQ COMPUTER'S PROFIT MORE THAN TRIPLED IN THE SECOND QUARTER ON RECORD REVENUE DEFYING A RECENT PERSONALCOMPUTER INDUSTRY SLUMP NORTHERN TELECOM POSTED A 103 BILLION LOSS FOR THE SECOND QUARTER AND SAID IT WILL REPORT A LOSS FOR THE YEAR AMID SOFTWARE PROBLEMS IN ITS CORE SWITCHING EQUIPMENT BUSINESS IT ALSO SAID IT WILL LAY OFF 9 OF ITS WORKERS AND SELL ITS SUBMARINE SYSTEMS UNIT TO FRANCE'S ALCATEL FOR 9066 MILLION A GROUP OF INTERNATIONAL BANKERS MADE PUBLIC A CAMPAIGN TO HEAD OFF GOVERNMENT CONTROLS ON THE MORE THAN 6 TRILLION MARKET IN DERIVATIVES TWO MEN WERE INDICTED ON WIREFRAUD CHARGES FOR A WILD TRADING SPREE AT THE CHICAGO BOARD OF TRADE LAST OCTOBER THAT SHOOK UP THE NATIONAL MARKET IN US TREASURY BONDS FOUR KEY APPLE COMPUTER ENGINEERS PLAN TO LEAVE APPLE'S QUICKTIME COMPUTER VIDEO DEVELOPMENT GROUP AND JOIN A VIDEO GAME STARTUP COMPANY ONE OF THE ENGINEERS SAID SHORT INTEREST WAS ESSENTIALLY FLAT ON THE BIG BOARD AT MIDJULY AFTER HITTING A RECORD LEVEL A MONTH EARLIER FRANCE NAMED THE FIRST COMPANIES TO BE SOLD IN ITS PRIVATIZATION PLAN THE FIRST IN THE BATCH WILL BE BANQUE NATIONALE DE PARIS AND RHONEPOULENC REPUBLIC NEW YORK CORESTATES AND FLEET FINANCIAL POSTED STRONG GAINS IN SECONDQUARTER PROFIT FUELED BY IMPROVED LOAN ACTIVITY AND LOWER LOANLOSS PROVISIONS AT THE BANKS OFFICE VACANCIES APPEAR TO HAVE PEAKED BUT A REBOUND IN THE MARKET ISN'T EXPECTED SOON LEAVING RELIEF FOR DEBTSTRAPPED OWNERS YEARS AWAY THE RATE IN THE NATION'S 53 LARGEST CITIES FELL TO 18 IN THE SECOND PERIOD DOWN FROM A RECORD 192 IN 1992'S FIRST PERIOD UNITED DOMINION INDUSTRIES AGREED TO ACQUIRE MARLEY FROM AFFILIATES OF KOHLBERG KRAVIS ROBERTS AND MARLEY'S MANAGEMENT FOR 207 MILLION UNITED AN INDUSTRIAL PRODUCTS FIRM WILL ALSO ASSUME MARLEY'S 133 MILLION DEBT BONDS LEHMAN BROTHERS TREASURY INDEX 532798 OFF 4188 COMMODITIES OIL 1793 A BARREL UP NINE CENTS DOW JONES FUTURES INDEX 12788 OFF 027 SPOT INDEX 12264 OFF 040 DOLLAR 10810 YEN OFF 005 16970 MARKS OFF 00026 9307220024 930722 CORRECTIONS & AMPLIFICATIONS THE DOLLAR STOOD AT 16996 MARKS LATE TUESDAY AFTERNOON IN NEW YORK THE RATE WAS MISSTATED AS 16690 MARKS IN YESTERDAY'S EDITION SALOMON INC'S OIL REFINING SUBSIDIARY PLANS TO BUY MOVE AND INTEGRATE A DOW CHEMICAL CO PLANT FOR 200 MILLION A HEADLINE IN TUESDAY'S EDITION INCORRECTLY STATED THAT THE PLANT WOULD BE PURCHASED FOR 200 MILLION NEITHER COMPANY WOULD DISCLOSE THE PLANT'S PURCHASE PRICE NATIONAL MEDICAL ENTERPRISES INC AND SEVERAL INSURANCE COMPANIES HAVE BEEN ORDERED BY A FEDERAL JUDGE IN TEXAS TO SETTLE A DISPUTE THROUGH NONBINDING MEDIATION AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE DISPUTE WOULD BE SETTLED THROUGH ARBITRATION A WARNING ISSUED BY THE EUROPEAN COMMUNITY COMMISSION THAT UNITED INTERNATIONAL PICTURES MAY BE VIOLATING EC COMPETITION RULES REPORTED IN YESTERDAY'S EDITION APPLIES ONLY TO UIP'S PAY TELEVISION ARRANGEMENTS UIP IS AN INTERNATIONAL DISTRIBUTION UNIT FOR THREE LARGE US MOVIE STUDIOS SEPARATELY UIP SAID IT IS CONFIDENT THAT WE WILL BE ABLE TO SATISFY THE EC COMMISSION ON THESE ISSUES AND DEMONSTRATE THAT UIP PROVIDES A FIRST CLASS SERVICE OF CONSIDERABLE BENEFIT TO PAY TELEVISION CHANNELS AND ULTIMATELY PAY TELEVISION CONSUMERS CONSISTENT WITH COMMUNITY COMPETITION LAW 9307220023 930722 MARKETING BRIEF NEW YORK TIMES CO SECONDPERIOD NET ROSE 60 AFTER IMPACT OF '92 CHARGE NEW YORK TIMES CO IN NEW YORK SAID SECONDQUARTER PROFIT ROSE 60 FROM A YEAR AGO WHEN PROFIT WAS DEPRESSED BY AN 11 MILLION CHARGE DUE TO LABOR DISRUPTIONS EXCLUDING THE CHARGE PROFIT ROSE SLIGHTLY IN THE SECOND QUARTER FOR THE QUARTER NEW YORK TIMES CO'S PROFIT WAS 224 MILLION OR 28 CENTS A SHARE COMPARED WITH 14 MILLION OR 18 CENTS A SHARE FOR THE SAME QUARTER LAST YEAR REVENUE ROSE 91 TO 4836 MILLION FROM 4432 MILLION OPERATING PROFIT FOR THE NEWSPAPER GROUP WAS 418 MILLION ABOUT EQUAL TO 1992 EXCLUDING THE 11 MILLION CHARGE ADVERTISING LINAGE AT THE TIMES FOR THE SECOND QUARTER WAS 198 MILLION LINES EQUAL TO THE YEARAGO QUARTER 9307220022 930722 PERELLA CONSIDERS QUITTING HIS FIRM AND THIS TIME HE MIGHT BE SERIOUS NAME BY RANDALL SMITH AND LAURIE P COHEN STAFF REPORTERS OF THE WALL STREET JOURNAL ONE OF THE LONGESTRUNNING MARRIAGES ON WALL STREET MAY BE ON THE ROCKS JOSEPH PERELLA CHAIRMAN OF WASSERSTEIN PERELLA & CO IS TALKING ABOUT QUITTING THE FIRM HE FOUNDED WITH BRUCE WASSERSTEIN IN 1988 AT THE PEAK OF THE MERGER BOOM THE TWO MEN BEGAN WORKING TOGETHER AT FIRST BOSTON CORP IN 1977 WHERE THEY BECAME SUPERSTARS IN THE BIGGEST TAKEOVER BATTLES OF THE 1980S IT ISN'T CLEAR WHETHER MR PERELLA A MERCURIAL INVESTMENT BANKER WHO HAS THREATENED TO QUIT BEFORE WILL GO THROUGH WITH THE RESIGNATION BUT HIS CONSIDERATION OF SUCH A STEP APPEARS TO BE MORE SERIOUS THAN IN THE PAST SOME ASSOCIATES SAY MR PERELLA'S THREAT TO QUIT COMES AS HIS FIRM TRIES TO BOUNCE BACK FROM A DECLINE IN ITS CORE MERGER ADVISORY BUSINESS AND DIVERSIFY INTO OTHER AREAS SUCH AS SECURITIES UNDERWRITING CURRENCY TRADING DERIVATIVES AND EMERGING MARKETS THE FIRM HAS ALREADY BUILT A PROFITABLE JUNKBOND TRADING BUSINESS GRANTCHESTER SECURITIES AND ITS MERCHANTBANKING FUND ALSO GENERATES HEALTHY ANNUAL MANAGEMENT FEES MR PERELLA TOLD SOME PARTNERS THIS WEEK OF HIS INTENTION TO RESIGN ACCORDING TO INVESTMENT BANKERS AT OTHER FIRMS HE ALSO TOLD AT LEAST ONE CLIENT ON TUESDAY THAT HE WAS QUITTING ACCORDING TO OTHER RIVAL INVESTMENT BANKERS THE CLIENT DIDN'T RETURN PHONE CALLS YESTERDAY BUT HIS SECRETARY CONFIRMED THAT THE TWO MEN HAD SPOKEN MR PERELLA WAS OUT OF THE OFFICE YESTERDAY AND DIDN'T RETURN PHONE CALLS CALLS TO OTHER EXECUTIVES INCLUDING MR WASSERSTEIN WENT UNRETURNED AND A SPOKESMAN FOR THE FIRM DECLINED TO COMMENT WHEN MESSRS WASSERSTEIN AND PERELLA LEFT FIRST BOSTON THEY VOWED TO BECOME AS MR WASSERSTEIN PUT IT THE DOMINANT FORCE IN MERGERS AND ACQUISITIONS ON A GLOBAL BASIS FOR A TIME THEY SEEMED HEADED TOWARD ACHIEVING THAT GOAL THE FIRM RANKED THIRD IN THE VOLUME OF DEALS COMPLETED WORLDWIDE IN 1989 HOWEVER THE FIRM'S BUSINESS ERODED AFTER THE MERGER BOOM PEAKED THE VOLUME OF HOSTILE MEGADEALS MR WASSERSTEIN'S SPECIALTY DECLINED SHARPLY AND HIS REPUTATION SUFFERED WHEN SOME OF HIS CLIENTS WHO HAD TAKEN ON BIG DEBTS TO COMPLETE TRANSACTIONS HAD FINANCIAL PROBLEMS IN 1992 THE FIRM'S RANKING IN VOLUME OF DEALS COMPLETED WORLDWIDE FELL TO NO 20 ACCORDING TO SECURITIES DATA CO AS A RESULT MANY OF THE FIRM'S TOP INVESTMENT BANKERS HAVE LEFT DURING THE PAST SEVERAL YEARS INCLUDING MAK ROSSOFF WHO WENT TO DILLON READ & CO ALAN STEPHENSON WHO RETURNED TO THE LAW FIRM OF CRAVATH SWAINE & MOORE AND ROBERT MCKEON WHO FOUNDED HIS OWN MERCHANT BANKING FUND VERITAS CAPITAL CLOSE ASSOCIATES SAY MR PERELLA HAS SPOKEN OF QUITTING SINCE DECEMBER 1989 BUT THE THREATS HAVE GROWN MORE FREQUENT IN THE PAST YEAR FUELED IN PART BY HIS WIFE'S ILLNESS LAST YEAR IN RECENT MONTHS MR PERELLA IS SAID TO HAVE BEEN FRUSTRATED BY DEMANDS FOR MORE COMPENSATION AND RESOURCES FROM BOTH GRANTCHESTER AND GARY PARR AN INVESTMENT BANKER WHO SPECIALIZES IN INSURANCE GRANTCHESTER ONE OF THE BUSIEST JUNKBOND TRADING DESKS ON WALL STREET HELD TALKS ABOUT JOINING A BANKING COMPANY EARLIER THIS YEAR ITS PRESIDENT WILLIAM BEGLEY DECIDED TO KEEP THE UNIT AT WASSERSTEIN BUT MR BEGLEY HAS PRESSED THE FIRM TO ASSIGN MORE INVESTMENT BANKERS TO FIND NEW JUNKBOND ISSUES TO BE SOLD BY GRANTCHESTER MR BEGLEY DECLINED TO COMMENT AND MR PARR DIDN'T RETURN CALLS WHILE MR WASSERSTEIN IS THE BETTERKNOWN OF THE TWO COMPETITORS SAY MR PERELLA IS IMPORTANT TO THE FIRM BECAUSE HE MAINTAINS CLOSE RELATIONSHIPS WITH MORE THAN A DOZEN CHIEF EXECUTIVES OF BIG CLIENTS THERE HAVE BEEN RUMORS THAT MR PERELLA MIGHT REJOIN FIRST BOSTON WHOSE PRESIDENT ARCHIBALD COX JR RESIGNED LAST WEEK YESTERDAY SOME WASSERSTEIN PERELLA INSIDERS SEEMED GENUINELY CONFUSED ABOUT MR PERELLA'S STATUS AT THE FIRM AS FOR MR PERELLA HE WAS SAID TO BE OUT GOLFING 9307220021 930722 BUSINESS BRIEF FUQUA INDUSTRIES INC COMPANY'S NAME IS CHANGED TO REFLECT NEW ORIENTATION FUQUA INDUSTRIES INC SEEKING TO SHED ITS IMAGE AS A CONGLOMERATE AND EMPHASIZE ITS SPORTS AND LEISURE FOCUS SAID IT CHANGED ITS NAME TO ACTAVA GROUP INC COMPANY FOUNDER AND NAMESAKE JB FUQUA PAID THE ATLANTA CONCERN 1 MILLION TO REACQUIRE THE RIGHTS TO HIS NAME SAID CHARLES R SCOTT FUQUA'S CHIEF EXECUTIVE AT A NEWS CONFERENCE ANNOUNCING THE CHANGE HE ESTIMATED THE COST OF THE NAME CHANGE WOULD BE SEVERAL HUNDRED THOUSAND DOLLARS EARLIER THIS YEAR FUQUA INDUSTRIES SAID IT PLANNED TO FOCUS ON SPORTS AND LEISURE INDUSTRIES AND HIRED MERRILL LYNCH & CO TO HELP IT REALIZE A FAIR VALUE FOR ITS SNAPPER LAWN AND GARDEN EQUIPMENT BUSINESS MR SCOTT SAID THE COMPANY IS CONTINUING TO EXPLORE OPTIONS FOR THE SNAPPER BUSINESS INCLUDING TAKING IT PUBLIC SETTING IT UP IN A JOINT VENTURE OR SELLING IT OUTRIGHT HE SAID THERE WAS NO TIMETABLE ON ANY MOVES ON SNAPPER BUT REITERATED IT SIMPLY DOESN'T FIT THE NEW FOCUS ON SPORTS AND LEISURE IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FUQUA WAS QUOTED AT 8125 DOWN 50 CENTS 9307220020 930722 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FHP INTERNATIONAL CORP AN OFFERING OF 100 MILLION OF SENIOR NOTES DUE 2003 VIA SMITH BARNEY HARRIS UPHAM & CO HEALTHSOURCE INC AN OFFERING OF TWO MILLION COMMON SHARES VIA GOLDMAN SACHS & CO KIDDER PEABODY & CO AND ROBERTSON STEPHENS & CO PLASTIC SPECIALTIES & TECHNOLOGIES INC AN OFFERING OF 125 MILLION OF SENIOR SECURED NOTES DUE 2003 VIA WERTHEIM SCHRODER & CO 9307220019 930722 SHERWINWILLIAMS PLANS BUYBACK CLEVELAND SHERWINWILLIAMS CO SAID ITS BOARD HAS AUTHORIZED THE COMPANY TO BUY AS MANY AS SIX MILLION COMMON SHARES FOR THE COMPANY'S TREASURY THE MAKER OF CHEMICALS AND COATINGS SAID THE STOCK PURCHASES WILL BE MADE FROM TIME TO TIME FOR GENERAL CORPORATE PURPOSES AS OF JUNE 30 SHERWINWILLIAMS HAD ABOUT 887 MILLION SHARES OUTSTANDING 9307220018 930722 CREDIT RATINGS MIRAGE RESORTS INC LAS VEGAS MOODY'S INVESTORS SERVICE INC PLACED THE RATINGS ON THE LONGTERM DEBT OF GNLV FINANCE CORP A FINANCING SUBSIDIARY OF MIRAGE RESORTS ON REVIEW FOR POSSIBLE DOWNGRADE ABOUT 230 MILLION OF DEBT IS AFFECTED THE RATING AGENCY ATTRIBUTED THE MOVE TO THE RECENT FAILURE OF MIRAGE'S EXCHANGE OFFER TO SWAP SENIOR GNLV FINANCE NOTES FOR MIRAGE SUBORDINATED DEBT AMONG OTHER THINGS THE FAILED SWAP INCREASES THE CHANCES THAT MIRAGE WILL SPIN OFF THE GOLDEN NUGGET CASINO WHICH IS AFFILIATED WITH GNLV FINANCE 9307220016 930722 REVIEW & OUTLOOK EDITORIAL DEMOCRATS LOVE BUREAUCRATS THE SENATE HAS JOINED THE HOUSE IN REPEALING MUCH OF THE HATCH ACT THE LAW FRANKLIN ROOSEVELT SIGNED IN 1939 TO LIMIT THE POLITICAL ACTIVITY OF FEDERAL WORKERS SINCE THEN IT HAS PREVENTED THE CREATION OF A POLITICIZED FEDERAL WORK FORCE A 1989 SURVEY BY THE MERIT SYSTEMS PROTECTION BOARD FOUND ONLY 32 OF FEDERAL EMPLOYEES WANTED THE HATCH ACT WEAKENED YET SENATORS VOTED 68 TO 30 TO GUT THE ACT THE MIRROR IMAGE OF THE SENTIMENTS OF FEDERAL EMPLOYEES WHY THE DICHOTOMY THE ANSWER IS THAT LEADERS OF THE DEMOCRATIC PARTY AND FEDERAL EMPLOYEE UNIONS HAVE FORMED A MUTUALLY BENEFICIAL ALLIANCE TO SUBORDINATE THE INTERESTS OF WORKERS TO RAW POLITICS IF THE BILL BECOMES LAW THREE MILLION FEDERAL AND POSTAL WORKERS WILL BE ABLE TO HOLD PARTY OFFICES SOLICIT MONEY FROM COWORKERS FOR UNION PACS AND ORGANIZE RALLIES THE HOUSE VERSION WOULD EVEN ALLOW FEDERAL WORKERS TO MANAGE CAMPAIGNS AND HOLD ELECTIVE OFFICE THESE CHANGES WOULD BE A BONANZA FOR CANDIDATES ESPECIALLY DEMOCRATS WHOSE IDEA OF POLITICS IS EXPANDING THE ROLE FOR THE FEDERAL GOVERNMENT THOUSANDS OF FOOT SOLDIERS WOULD BE MADE AVAILABLE FOR CAMPAIGNS AND FEDERAL EMPLOYEE UNIONS WOULD BECOME FLUSH WITH CASH THAT COULD BE USED TO DEFEAT INCUMBENTS WHO WANT TO REFORM FEDERAL PAY AND BENEFIT LEVELS FEDERAL EMPLOYEE UNIONS HAVE ALWAYS ENVIED THE POLITICAL MUSCLE OF THE 12 MILLIONMEMBER NATIONAL EDUCATION ASSOCIATION THE NATION'S LARGEST UNION BECAUSE IT IS GENERALLY NOT SUBJECT TO HATCH ACTLIKE CURBS ON ITS ACTIVITIES IT HAS BEEN ABLE TO BUILD ITSELF INTO A GIANT LOBBY FOR ITS OWN SELFINTEREST A PORTION OF THE HIGH TEACHER SALARIES IT NEGOTIATES ARE TURNED BACK TO IT IN THE FORM OF DUES WHICH ARE IN TURN USED TO FURTHER ENHANCE ITS POLITICAL CLOUT THE WEAKENING OF THE HATCH ACT MAY SOON CREATE SEVERAL MORE 800POUND POLITICAL GORILLAS THAT WILL BE ABLE TO JUST SAY NO TO ANY PROPOSALS FOR CUTBACKS IN ENTITLEMENT SPENDING OR THE BUREAUCRACY NO ONE WANTS TO DENY FEDERAL WORKERS THE RIGHT TO VOTE AND BE A CITIZEN BUT FEDERAL WORKERS HAVE LONG ACCEPTED LIMITS ON CERTAIN PARTISAN POLITICAL ACTIVITY IN EXCHANGE FOR THE SECURITY AND GENEROUS BENEFITS THAT COME WITH FEDERAL EMPLOYMENT MANY FEDERAL WORKERS LIKE THE WAY THE HATCH ACT PROTECTS THEM FROM ARMTWISTING BY POLITICAL OPERATIVES OF THE PARTY IN POWER INDEED ONE UNION OFFICIAL COMPLAINED IN 1990 THAT SOME FEDERAL EMPLOYEES REALLY HIDE BEHIND THE HATCH ACT AS A WAY TO GET OUT OF PARTICIPATING IN POLITICS CIVIL LIBERTARIANS AND GROUPS SUCH AS COMMON CAUSE HAVE LONG OPPOSED SCRAPPING THE HATCH ACT BECAUSE IT MIGHT INCREASE POLITICAL INTIMIDATION AFTER ALL IT WAS ORIGINALLY PROPOSED BY DEMOCRATIC SENATOR CARL HATCH IN 1939 AFTER NEW DEAL OFFICIALS STRONGARMED FEDERAL WORKERS INTO HELPING REELECT A KENTUCKY SENATOR LAST YEAR BILL CLINTON PROMISED UNION LEADERS HE WOULD SUPPORT A WATERING DOWN OF THE HATCH ACT NO DOUBT THE HOUSESENATE CONFERENCE COMMITTEE WILL AGREE ON A BILL HE'LL SIGN THE IRONY HERE WILL BE THAT THE CANDIDATE WHO PROMISED TO REINVENT GOVERNMENT WILL PRESIDE OVER A REINVIGORATION OF A FOSSILIZED FEDERAL BUREAUCRACY THAT REPRESENTS EVERYTHING PEOPLE DISLIKE ABOUT WASHINGTON TODAY WHAT THIS MEANS IN SHORT IS THAT THE DEMOCRATIC PARTY IS ABOUT TO MAKE ITSELF OFFICIALLY A CONTROLLING AFFILIATE OF THE PUBLIC EMPLOYEE UNIONS THAT IS THE PARTY OF BIGGER AND BIGGER GOVERNMENT 9307220015 930722 TECHNOLOGY AND HEALTH JOHNSON & JOHNSON BRISTOLMYERS PFIZER POST 2NDQUARTER PROFIT GAINS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL JOHNSON & JOHNSON AND BRISTOLMYERS SQUIBB CO REPORTED SECONDQUARTER EARNINGS GROWTH DESPITE SLUGGISH SALES CAUSED BY WEAK EUROPEAN MARKETS AND DECLINES IN KEY PRODUCTS MEANWHILE PFIZER INC DEFIED INDUSTRY TRENDS AND POSTED STRONG EARNINGS AND SALES GROWTH IN ITS CONTINUING OPERATIONS RONALD NORDMANN AN ANALYST AT PAINEWEBBER SAID DRUG INDUSTRY PERFORMANCE HAS SO FAR COME IN WITHIN EXPECTATIONS MOREOVER HE SAID WE'RE BEGINNING TO SEE EXTRAORDINARY BENEFITS DERIVED FROM COST CONTROLS IN COMPANIES SUCH AS BRISTOLMYERS AND MERCK & CO THE COMPANIES ARE ADAPTING REASONABLY WELL TO THE NEW TOUGHER ENVIRONMENT FOR HEALTHCARE COMPANIES JOHNSON & JOHNSON SAID SECONDQUARTER EARNINGS GREW 95 BUT SALES GREW BY JUST 38 TO 354 BILLION DURING THE QUARTER THE NEW BRUNSWICK NJ COMPANY BLAMED WEAK INTERNATIONAL ECONOMIES GOVERNMENTAL HEALTHCARE REFORM EFFORTS IN TWO EUROPEAN MARKETS AND ADVERSE FOREIGN CURRENCY TRANSLATIONS FIRSTHALF SALES INCREASED 49 TO 710 BILLION JOHNSON & JOHNSON'S PHARMACEUTICAL SALES IN THE US GREW 95 TO 428 MILLION BUT DECLINED SLIGHTLY OVERSEAS NEW DRUGS SUCH AS THE ANTIANEMIA PRODUCT PROCRIT AND HAIRYCELL LEUKEMIA TREATMENT LEUSTATIN CONTRIBUTED TO THE GROWTH IN SALES HISMANAL AN ANTIHISTAMINE HAD LOWER SALES REFLECTING NEW COMPETITION FROM SCHERINGPLOUGH CORP'S CLARITIN AND A BLACK BOX WARNING OF POSSIBLE ADVERSE INTERACTIONS WITH OTHER DRUGS JOHNSON & JOHNSON EMPHASIZED THE GROWTH IN ITS ETHICONENDOSURGERY BUSINESS WITH A SALES INCREASE OF 65 IN THE QUARTER AND 86 IN THE FIRST SIX MONTHS JOHNSON & JOHNSON DECLINED 150 A SHARE TO END AT 3825 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BRISTOLMYERS'S SECONDQUARTER EARNINGS GREW 67 ON A SALES GAIN OF 22 TO 28 BILLION FOR THE SIX MONTHS SALES ROSE 32 TO 556 BILLION DOMESTIC SALES WERE FLAT WHILE INTERNATIONAL SALES ROSE 5 PHARMACEUTICAL SALES DECLINED 1 PRINCIPALLY BECAUSE OF LOWER SALES OF HEART DRUG CAPOTEN WHICH WERE OFF 22 TO 355 MILLION A COMPANY SPOKESMAN ALSO POINTED OUT THAT CAPOTEN SALES WERE UNUSUALLY STRONG IN THE SECOND QUARTER LAST YEAR OTHER DRUGS SUCH AS ANTICHOLESTEROL AGENT PRAVACHOL ANTIBIOTIC CEFZIL AND ITS CANCER DRUGS SHOWED VERY STRONG INCREASES THE COMPANY SAID BRISTOLMYERS SHARES DROPPED 625 CENTS IN BIG BOARD COMPOSITE TRADING CLOSING AT 5750 A SHARE PFIZER REPORTED A STRONG EARNINGS GAIN OF 15 BUT PROFITS FROM CONTINUING OPERATIONS GREW AN EVEN STRONGER 21 SECONDQUARTER SALES ROSE 32 TO 175 BILLION SALES FROM CONTINUING OPERATIONS HOWEVER ROSE 10 MOST OF THE SALES GROWTH CAME FROM UNIT VOLUME INCREASES RATHER THAN PRICE INCREASES PFIZER SAID PHARMACEUTICAL SALES IN THE QUARTER ROSE 15 BUT CONSUMER HEALTH CARE PRODUCTS DECLINED BY 2 9307220014 930722 BUSINESS BRIEF COCACOLA CO COMPANY FOREIGN INVESTOR JOIN TO OPEN PLANTS IN CHINA MALAYSIANCHINESE INVESTOR ROBERT KUOK HAS TEAMED UP WITH COCACOLA CO IN A VENTURE THAT PLANS TO OPEN 10 COKE PLANTS IN CHINA'S INLAND CITIES OVER FIVE YEARS COCACOLA BASED IN ATLANTA ALREADY OWNS SEVERAL BOTTLING PLANTS IN CHINA BUT WILL TAKE A MINORITY STAKE IN THE NEW VENTURE KUOK'S KERRY GROUP WILL HOLD 875 OF KERRY BEVERAGES LTD WITH COCACOLA TAKING UP THE REMAINING 125 AS ITS INITIAL PROJECT KERRY BEVERAGES PLANS TO TAKE 60 OF A 26 MILLION BOTTLING PLANT IN THE NORTHERN CITY OF SHENYANG A LOCAL COMPANY SHENYANG BAWANGSI BEVERAGE FACTORY WHICH WILL HOLD 40 AND KERRY BEVERAGES WILL BUILD A PLANT TO MAKE BOTH COCACOLA PRODUCTS AND CHINESEBRAND SOFT DRINKS COCACOLA ALREADY OPERATES 13 BOTTLING PLANTS IN CHINA UNDER A VARIETY OF JOINTVENTURE ARRANGEMENTS IT PARTICIPATES IN SOME AS A MINORITY PARTNER KERRY GROUP A CLOSELY HELD CONGLOMERATE WITH INTERESTS IN HOTELS REAL ESTATE FOODRELATED INDUSTRIES AND OTHER BUSINESSES SAID IT SEES CONSIDERABLE SYNERGIES FROM WORKING WITH COCACOLA 9307220013 930722 INTERNATIONAL BRIEF SOCIETE GENERALE BANK EXPECTS 1STHALF PROFIT TO REACH YEAREARLIER LEVEL FRENCH BANK SOCIETE GENERALE SAID THAT DESPITE THE INCREASING DIFFICULTIES OF FRENCH AND FOREIGN COMPANIES FIRST HALF 1993 NET CONSOLIDATED GROUP PROFIT SHOULD BE AT LEAST EQUAL TO THAT OF THE SAME PERIOD IN 1992 IN A COMMUNIQUE FOLLOWING A BOARD MEETING THE BANK ONE OF FRANCE'S THREE LARGEST BANKS SAID THAT IT EXPECTS TO ACHIEVE THIS THROUGH EFFICIENT RISK CONTROL AS REPORTED IN 1992 FIRST HALF NET GROUP PROFIT ROSE 97 TO 198 BILLION FRANCS 3411 MILLION WHILE GROSS OPERATING PROFIT WAS UP 45 TO 575 BILLION FRANCS THE BANK SAID THAT THE ECONOMIC UPTURN IN SOME COUNTRIES AND THE DIVERSIFICATION OF ITS PRODUCT LINES HELPED ITS INTERNATIONAL CAPITAL MARKET ACTIVITIES THAT SHOULD CONTRIBUTE TO A GROWTH IN GROUP GROSS OPERATING PROFIT FOR THE FIRST HALF OF 1993 9307220012 930722 UNITED PARCEL SERVICE ATLANTA UNITED PARCEL SERVICE OF AMERICA INC AGREED TO EXTEND ITS CONTRACT NEGOTIATIONS WITH THE TEAMSTERS UNION FOR 10 DAYS BEYOND THE JULY 31 EXPIRATION OF THE CONTRACT SINCE APRIL THE CLOSELY HELD PACKAGE DELIVERY COMPANY HAS BEEN NEGOTIATING A THREEYEAR CONTRACT AFFECTING ITS 165000 DRIVERS PACKAGE SORTERS AND MECHANICS WHO MAKE UP THE LARGEST SINGLE TEAMSTERS SHOP IN THE COUNTRY BOTH PARTIES SAY THE EXTENSION OF TALKS UNTIL AUG 10 EASES TENSIONS FOR THE TIME BEING A UNION SPOKESMAN SAID THE TWO SIDES HAVE COME TO SOME AGREEMENTS ON WORKPLACE ISSUES BUT HAVEN'T YET GOTTEN INTO DETAILED DISCUSSIONS OF ECONOMIC ISSUES INCLUDING WAGES AND BENEFITS 9307220011 930722 INTERNATIONAL WESTERN GERMAN PRICES FRANKFURT WESTERN GERMAN CONSUMER PRICES CONTINUE TO RISE ALBEIT AT A SLOWER RATE THAN PREVIOUSLY ACCORDING TO THE GERMAN CENTRAL BANK THE WESTERN REGION'S CONSUMER PRICE INDEX CLIMBED AN ANNUALIZED 3 IN THE TWOMONTH MAYJUNE PERIOD COMPARED WITH 45 IN THE PREVIOUS TWO MONTHS OF MARCHAPRIL THE BUNDESBANK WROTE IN ITS MONTHLY REPORT 9307220010 930722 WEDNESDAY'S MARKETS INDUSTRIALS HIT RECORD IN LATE RISE BUT BONDS TUMBLE ON DEFICIT WORRIES DOLLAR ENDS LOWER BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE EKED OUT A RECORD IN A LATE BOUT OF COMPUTERGUIDED PROGRAM BUYING BUT BOND PRICES TUMBLED ON CONCERNS ABOUT THE DEFICIT REDUCTION PACKAGE THE DOLLAR WAS LOWER THE INDUSTRIAL AVERAGE ROSE 1062 POINTS TO A RECORD 355540 JUST 057 POINT ABOVE ITS FORMER HIGH OF 355483 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 013 TO 44718 AND THE NASDAQ COMPOSITE INDEX LOST 182 TO 70008 ANALYSTS SAID INVESTORS SHOULDN'T READ TOO MUCH INTO THE RECORD PRICES MEANDERED MOST OF THE DAY WITH MANY STOCK GROUPS TURNING IN MIXED PERFORMANCES I DON'T THINK IT MEANS ANYTHING SAID JACK BAKER MANAGING DIRECTOR FOR STOCK TRADING AT FURMAN SELZ THE BREADTH WASN'T GOOD AND THERE WAS NO AGGRESSIVE BUYING BY INSTITUTIONS ALL DAY MR BAKER NOTED THAT THE WEAKNESS IN THE BOND MARKET YESTERDAY DOESN'T BODE WELL FOR STOCKS IF THE BOND MARKET FALTERS AGAIN EVERYONE WILL SOBER UP PRETTY QUICKLY HE SAID YESTERDAY THE BOND MARKET WAS ASSAILED ON SEVERAL FRONTS ANALYSTS SAID TRADERS KNOCKED PRICES OF LONGTERM BONDS LOWER ON FEARS THAT THE CLINTON ADMINISTRATION'S DEFICIT REDUCTION PLANS MAY HIT SOME SNAGS THOSE WORRIES SURFACED AFTER A POWERFUL PROPONENT OF THE PROGRAM REP DAN ROSTENKOWSKI CAME UNDER INCREASING SCRUTINY IN AN EMBEZZLEMENT SCANDAL THE TREASURY'S BENCHMARK 30YEAR BOND PLUNGED MORE THAN 7/8 POINT OR MORE THAN 875 FOR EACH 1000 FACE AMOUNT THE YIELD ROSE TO 662 FROM 655 PRICES OF SHORTTERM NOTES AND BILLS ALSO SANK IN CONTINUING FALLOUT FROM FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S APPEARANCE ON CAPITOL HILL TUESDAY MR GREENSPAN INDICATED IN TESTIMONY TO THE HOUSE BANKING COMMITTEE THAT THE FED WAS PREPARED TO BOOST SHORTTERM INTEREST RATES TO COMBAT FURTHER SIGNS OF INFLATION HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP SAID THE BOND MARKET WAS RIPE FOR A BOUT OF SELLING REALLY IT'S JUST SOME PROFITTAKING AFTER MANY DAYS OF STRENGTH HE SAID EUROPEAN MARKETS FELL WITH FRENCH STOCKS OFF 11 GERMAN SHARES 08 ITALIAN SHARES 23 AND SWEDISH STOCKS 1 TRADERS ATTRIBUTED THE SELLOFFS TO APPREHENSION THAT FAST GERMAN MONEYSUPPLY GROWTH A PRECURSOR TO HIGHER INFLATION WOULD KEEP THE GERMAN CENTRAL BANK FROM CUTTING INTEREST RATES SIGNIFICANTLY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 001 TO 10652 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2533 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1051 ISSUES FELL AND 923 ROSE THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16970 MARKS AND 10810 YEN COMPARED WITH 16996 MARKS AND 10815 YEN TUESDAY 9307220009 930722 THREE BIG BANKS POST HIGHER NET FOR 2ND QUARTER REPUBLIC NEW YORK FLEET AND CORESTATES SHOW GROWTH IN SOME AREAS BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL THREE MAJOR EASTERN SEABOARD BANKING CONCERNS REPORTED STRONG INCREASES IN SECONDQUARTER NET INCOME FUELED BY IMPROVED LOAN ACTIVITY AND LOWER PROVISIONS FOR LOAN LOSSES FLEET FINANCIAL GROUP INC EARNINGS UP 68 GREW FROM INCREASED NET INTEREST MARGINS AND REDUCED PROVISIONS FOR LOAN LOSSES REPUBLIC NEW YORK CORP NET ROSE 17 REFLECTING NET INTEREST INCOME GROWTH AND HIGHER REVENUE FROM TRADING OPERATIONS CORESTATES FINANCIAL CORP EARNINGS UP 25 WERE DRIVEN BY SEVERAL CONSECUTIVE MONTHS OF INCREASED LOAN DEMAND IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY FLEET FINANCIAL DECLINED 25 CENTS TO 33375 A SHARE WHILE REPUBLIC NEW YORK SHARES CLOSED UNCHANGED AT 51625 A SHARE CORESTATES FINANCIAL ROSE 25 CENTS TO 57375 A SHARE IN NASDAQ TRADING FLEET NEW ENGLAND'S LARGEST BANK REPORTED RECORD SECONDQUARTER RESULTS REFLECTING NET INTEREST MARGINS THAT ROSE TO 506 FROM THE YEAREARLIER 48 AND SHARPLY REDUCED PROVISIONS FOR BOTH LOAN LOSSES AND EXPENSES FOR OWNED REAL ESTATE FLEET'S PROVISIONS FOR CREDIT LOSSES IN THE PERIOD AMOUNTED TO 70 MILLION COMPARED WITH 129 MILLION THE YEAR BEFORE NONPERFORMING ASSETS DROPPED TO 852 MILLION OR 32 OF THE LOAN PORTFOLIO FROM 15 BILLION OR 56 THE YEAR EARLIER TERRENCE MURRAY CHAIRMAN AND CHIEF EXECUTIVE SAID THE HIGHER EARNINGS CAME DESPITE CONTINUING SLUGGISHNESS OF THE REGIONAL ECONOMY WHICH HAS HAMPERED LOAN GROWTH TOTAL ASSETS FELL TO 4484 BILLION FROM 4489 BILLION FLEET'S STRONG RESULTS REFLECTED ITS BANK OPERATIONS IN NEW ENGLAND AND NEW YORK ITS FINANCIAL SERVICES GROUP WHICH HAD BOLSTERED THE BANK DURING NEW ENGLAND'S ECONOMIC DOWNTURN IN THE LATE 1980S RECORDED A 16 MILLION LOSS A YEAR EARLIER IT HAD A 30 MILLION PROFIT THE LOSS REFLECTED A DECISION BY ITS FLEET MORTGAGE UNIT TO TAKE A 100 MILLION PRETAX WRITEOFF AND PROVISION TO REFLECT THE DECLINING VALUE OF PURCHASED MORTGAGE SERVICING RIGHTS MANY OF THE NATION'S BIGGEST MORTGAGE SERVICERS HAVE TAKEN CHARGES BECAUSE LOW INTEREST RATES MEAN HOMEOWNERS REFINANCE MORTGAGES MORE FREQUENTLY THAN THEY WERE EXPECTED TO WHEN THE MORTGAGE SERVICING PORTFOLIOS WERE ACQUIRED FLEET OFFSET THE CHARGE BY SELLING FIXEDINCOME SECURITIES FROM ITS PORTFOLIO AND TAKING A 114 MILLION GAIN THE NEW YORKBASED BANK HOLDING COMPANY SAID NET INTEREST INCOME CLIMBED 11 TO 1983 MILLION FROM 1786 MILLION A YEAR EARLIER BECAUSE INTEREST PAYMENTS ON DEPOSITS DROPPED AVERAGE INTERESTEARNING ASSETS INCREASED 12 TO 319 BILLION FROM 286 BILLION OPERATING PROFIT FROM OTHER SOURCES ROSE 41 TO 949 MILLION INCLUDING 544 MILLION FROM TRADING ACTIVITIES WHICH MORE THAN DOUBLED FROM 254 MILLION A YEAR EARLIER REFLECTING INCREASED FOREIGN EXCHANGE TRADING GAINS AND GREATER MARKET ACTIVITY IN PRECIOUS METALS REPUBLIC SAID IT HAD HIGHERTHANEXPECTED PROVISIONS FOR LOAN LOSSES CITING CONTINUED WEAKNESS OF THE ECONOMY THE SECOND QUARTER PROVISION WAS 25 MILLION DOWN FROM THE YEAREARLIER 30 MILLION BUT UNCHANGED FROM THE 1993 FIRST QUARTER TOTAL ASSETS ROSE TO 362 BILLION FROM 333 BILLION PHILADELPHIABASED CORESTATES WHICH HAS 235 BILLION IN ASSETS ATTRIBUTED THE EARNINGS GAINS IN PART TO RECENTLY INCREASED LOAN DEMAND AVERAGE LOAN BALANCES FOR THE SECOND QUARTER INCREASED 36 TO 1553 BILLION FROM 15 BILLION IN THE FIRST QUARTER NET INTEREST INCOME ROSE 35 TO 2801 MILLION FROM 2707 MILLION IN THE FIRST QUARTER ANOTHER INDICATION OF IMPROVED LOAN DEMAND AT THE SAME TIME NONPERFORMING ASSETS DECLINED 37 TO 305 MILLION FROM THE YEAREARLIER 4849 MILLION THE PROVISION FOR LOAN LOSSES FELL TO 25 MILLION FROM 322 MILLION NET CHARGEOFFS WERE REDUCED TO 172 MILLION FROM 324 MILLION 9307220008 930722 LETTERS TO THE EDITOR ENVIRONMENTALISTS NEED WEEDS IN THEIR GARDEN WHAT DO BILL CLINTON CORPORATE AMERICA AND THE SIERRA CLUB HAVE IN COMMON THEY HAVE ALL YET TO UNDERSTAND WHAT RACIAL EQUALITY MULTICULTURALISM AND DIVERSITY ARE REALLY ABOUT THEIR EFFORTS TO MAKE THEIR CABINET THEIR EXECUTIVE LUNCHROOMS AND THEIR MEMBERSHIP LISTS LOOK LIKE AMERICA MISS THE REAL POINT WHICH IS TO HAVE DECISIONMAKING BODIES THAT FEEL LIKE AMERICA THE PIGMENTAL SOLUTION THAT SEEMS TO BE THE EMERGING NORM OF POLITICAL CORRECTNESS WHILE APPEALING AT THE SUPERFICIAL LEVEL CAN BE DANGEROUS WHEN COLORCODED APPEARANCES CHANGE BUT THE AGENDA DOES NOT SIERRA CLUB TAKES AN EDIFYING TOUR OF BLACK AMERICA PAGE ONE JUNE 24 IT IS GOOD THAT THE ENVIRONMENTAL MOVEMENT IS FINALLY DISCOVERING WHAT THE POOR OF THE WORLD HAVE LONG KNOWN ENVIRONMENTAL CONCERNS AS NARROWLY DEFINED BY ITS COMFORTABLY WELLTODO PROPONENTS IN THE US ARE A LUXURY AFFORDED PRIMARILY BY THE AFFLUENT MIDDLE CLASS SUBURBAN WHITE FOR THE LESS FORTUNATE THE DAILY BATTLE OF SURVIVAL TAKES PRECEDENCE OVER THE SURVIVAL OF CUDDLY ANIMALS AND SERENE WILDERNESS HOWEVER THE SOLUTION WILL HAVE TO BE MORE THAN JUST SKIN DEEP MERELY SEEKING A PIGMENT BALANCE IS TOO FARCICAL A REMEDY TO WORK ANYMORE IF THE ENVIRONMENTAL BACKYARD SEEMS MONOTONOUSLY LILYWHITE IT WILL NOT BE ENOUGH TO PLANT A FEW TOKEN VIOLETS AND ROSES WILD SHRUBS AND BUSHES WILL HAVE TO BE WELCOMED TOO EVEN IF TO SOME THEY LOOK TOO MUCH LIKE WEEDS AND POISON IVY AND YES THERE SHALL BE THORNS TOO AND THEY SHALL PRICK AND MAYBE SOME BLOOD WILL SPILL IN THIS CASE IT SHALL SPILL OVER THE BATTLE FOR A NEW ENVIRONMENTAL AGENDA AN AGENDA THAT ACCEPTS POVERTY AND DEPRIVATION AS AN ENVIRONMENTAL ISSUE ONE THAT RESPECTS THE RIGHT TO SURVIVAL FOR THE POOREST NO LESS THAN THE RIGHT TO SURVIVAL FOR THE BLUE WHALE ONE THAT IS AS MUCH AT HOME IN THE JUNGLES OF THE AMAZON AS IN THE JUNGLES OF THE INNER CITIES 9307220007 930722 BUSINESS BRIEF COCACOLA ENTERPRISES INC LOWER COSTS HELP BOTTLER POST SECONDQUARTER PROFIT COCACOLA ENTERPRISES INC ATLANTA REPORTED A SECONDQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS AS THE COMPANY BENEFITED FROM LOWER PACKAGING AND SWEETENER COSTS THE BIG COKE BOTTLER HAD NET OF 16 MILLION OR 13 CENTS A SHARE COMPARED WITH A LOSS IN THE YEAREARLIER PERIOD OF 26 MILLION OR 20 CENTS A SHARE REVENUE ROSE 4 TO 145 BILLION FROM 139 BILLION THE COMPANY WHICH IS 43 OWNED BY COCACOLA CO SAID A COMPETITIVE PRICING ENVIRONMENT RESULTED IN A 1 DECLINE IN ITS SELLING PRICES IN THE QUARTER BUT TWO MEASURES OF VOLUME SHOWED STRONG INCREASES SALES OF BOTTLED AND CANNED SOFT DRINKS ROSE ABOUT 45 ADJUSTING FOR ACQUISITIONS WHILE FOUNTAIN GALLON VOLUME INCREASED 11 FOR THE SIX MONTHS NET WAS 12 MILLION OR NINE CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 172 MILLION OR 134 A SHARE WHICH INCLUDED CHARGES REVENUE ROSE 6 TO 266 BILLION FROM 25 BILLION 9307220005 930722 DEFENSE SOFTWARE NAME CHANGE MAHWAH NJ DEFENSE SOFTWARE & SYSTEMS INC SAID IT CHANGED ITS NAME TO DATA SYSTEMS & SOFTWARE INC TO MORE ACCURATELY REFLECT ITS EMPHASIS ON COMMERCIAL MARKETS THE COMPANY PROVIDES COMPUTERSOFTWARE CONSULTING AND DEVELOPMENT AND MANUFACTURES SEMICONDUCTORS 9307220004 930722 BUSINESS BRIEF AVON PRODUCTS INC SALES IN PACIFIC RIM BOOSTED SECONDQUARTER PROFIT 10 AVON PRODUCTS INC SAID SECONDQUARTER PROFIT INCREASED 10 AS STRONG SALES IN THE PACIFIC RIM OFFSET WEAKNESS IN THE US FOR THE QUARTER ENDED JUNE 30 AVON'S NET INCOME WAS 656 MILLION OR 91 CENTS A SHARE VS 599 MILLION OR 83 CENTS A SHARE FOR THE SAME PERIOD LAST YEAR SALES ROSE 7 TO 9493 MILLION COMPARED WITH 8863 MILLION FOR THE PRIOR YEAR AT THE END OF THE QUARTER TOTAL DEBT WAS 350 MILLION DOWN FROM 443 MILLION FOR THE YEARAGO QUARTER THE NEW YORK COSMETICS AND GIFTPRODUCTS COMPANY SAID ECONOMIC SOFTNESS IN MORE ESTABLISHED WESTERN MARKETS WAS OFFSET BY VERY STRONG PERFORMANCES IN FASTGROWING DEVELOPING MARKETS SUCH AS THE PACIFIC RIM AVON SAID US SALES INCREASED 2 ALTHOUGH PRETAX PROFIT FELL 7 FROM THE YEARAGO PERIOD THE COMPANY ADDED THAT ITS FULLYEAR RESULTS ARE VERY DEPENDENT ON THE FOURTH QUARTER AVON SAID WHILE WE FEEL GOOD ABOUT OUR PRODUCTS AND PRICING WE'LL CONTINUE TO REMAIN CAUTIOUS UNTIL WE SEE AN INCREASED WILLINGNESS TO SPEND ON THE PART OF THE CONSUMER 9307220003 930722 BENEFICIAL TO REDEEM DEBENTURES WILMINGTON DEL BENEFICIAL CORP SAID IT WILL REDEEM ON OCT 1 ITS 408 MILLION OF 1275 DEBENTURES DUE 2013 THE DEBENTURES WILL BE REDEEMED AT 10765 OF FACE AMOUNT PLUS ACCRUED INTEREST BENEFICIAL IS A FINANCIALSERVICES HOLDING COMPANY 9307220002 930722 INTERNATIONAL DUTCH INDUSTRIAL OUTPUT AMSTERDAM INDUSTRIAL PRODUCTION IN THE NETHERLANDS ROSE A SEASONALLY ADJUSTED 13 ON AVERAGE PER DAY IN MAY FROM APRIL BUT WAS STILL DOWN 17 FROM 12 MONTHS EARLIER THE GOVERNMENT REPORTED THE FIGURES PUBLISHED BY THE HAGUEBASED CENTRAL BUREAU FOR STATISTICS SHOW THAT WHEN NOT ADJUSTED FOR SEASONAL INFLUENCES DUTCH INDUSTRIAL OUTPUT EASED 08 IN MAY FROM APRIL AND WAS DOWN 16 FROM A YEAR EARLIER 9307220001 930722 BUSINESS BRIEF JAMESWAY CORP STAFF CUT OF 14 IS PLANNED FOR CORPORATE HEADQUARTERS DISCOUNT RETAILER JAMESWAY CORP SECAUCUS NJ WHICH FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION MONDAY SAID IT WILL CUT STAFF BY 14 AT ITS HEADQUARTERS TO REDUCE COSTS THE CUTS ARE EXPECTED TO SAVE ABOUT 4 MILLION ANNUALLY AND WILL ELIMINATE 70 JOBS MAINLY IN THE INFORMATION SYSTEMS AND MERCHANDISING DIVISIONS THE COMPANY SAID JAMESWAY OPERATES 108 DEPARTMENT STORES IN THE MIDATLANTIC REGION AND EMPLOYS ABOUT 7100 PEOPLE JAMESWAY ALSO ANNOUNCED MANAGEMENT CHANGES THAT WILL CREATE A MORE DIRECT REPORTING STRUCTURE THE COMPANY SAID THREE JAMESWAY EXECUTIVES WERE GIVEN INCREASED RESPONSIBILITIES EXECUTIVE VICE PRESIDENT BARRY ROCKLAND 50 YEARS OLD WILL OVERSEE FINANCE DISTRIBUTION MANAGEMENT INFORMATION SYSTEMS AND LEGAL MATTERS THOMAS KILEY 48 WILL BECOME EXECUTIVE VICE PRESIDENT FOR MERCHANDISING AND STORE OPERATIONS RANDY SOLOMON 43 WAS NAMED DIRECTOR OF STORE OPERATIONS AND WILL REPORT TO MR KILEY 9307210159 930721 MARKETING FOCUS ON JAPAN BY YUMIKO ONO AS JAPANESE TRAVELERS BECOME MORE EXPERIENCED AND INDEPENDENT THEY'RE OPTING FOR OVERSEAS TOURS THAT OFFER CHEAPER PRICES AND FEWER GROUP ACTIVITIES FULLSERVICE PACKAGES CRAMMED WITH GUIDED TOURS AND VISITS TO DUTYFREE SHOPS NO LONGER CUT IT TODAY'S PRICECONSCIOUS CONSUMERS ARE ATTRACTED BY BARGAINS SAYS A SPOKESWOMAN FOR WORLD TOURS A TOKYO TRAVEL AGENCY CROWDS OF WOMEN HAVE BEEN SIGNING UP FOR SUMMER TOURS SINCE THE COMPANY IN MAY BEGAN OFFERING CUTRATE FARES TO GROUPS OF THREE WOMEN TRAVELING TOGETHER SHE SAYS THE DEAL ONE WOMAN IN EACH GROUP GETS FIVE DAYS IN NEW YORK FOR 64000 YEN 590 HALF THE REGULAR COST IF SHE SLEEPS ON A COT IN A ROOM WITH TWO TWIN BEDS THE PACKAGE INCLUDES AIR FARE AND HOTEL BUT NOT MEALS OR GUIDED TOURS JAPAN TRAVEL BUREAU INC IN APIL BEGAN OFFERING ITS FIRST DISCOUNT FARES FOR CHILDREN TO ENCOURAGE WHOLE FAMILIES TO TRAVEL KIDS UNDER 12 GET 50 OFF JAPANESE AGENCIES HAVE TRADITIONALLY CHARGED FULL PRICE FOR ALL BUT THE YOUNGEST CHILDREN TRAVEL AGENTS SAY BARGAIN TOURS WILL BE HARD TO ABANDON ONCE CONSUMERS GET USED TO THEM EVEN IF THE ECONOMY IMPROVES WHEN HIS CO A TOKYO TRAVEL AGENT OFFERED DISCOUNTS TO CELEBRATE THE RECENT OPENING OF A NEW OFFICE MORE THAN 500 CONSUMERS LINED UP OUTSIDE SOME FOR 30 HOURS JAPAN IS BECOMING A FRIENDLY PLACE FOR PEOPLE WHO LIKE TO DRINK AND MUNCH WITHOUT LIFTING A FINGER IN RECENT MONTHS MARKETERS HAVE INTRODUCED PRODUCTS MAKING IT UNNECESSARY FOR CONSUMERS TO MIX THEIR OWN COCKTAILS BUTTER THEIR TOAST OR USE A SPOON TO EAT THEIR GELATIN DESSERTS SUNTORY AIMS TO LIFT ITS SAGGING SALES WITH 7 1/2OUNCE CANS OF MIZUWARI OR LIQUOR USUALLY WHISKEY MIXED WITH MINERAL WATER THE DRINK IS POPULAR WITH MIDDLEAGED MEN WHO FREQUENT HOSTESS BARS AND SUNTORY HOPES PEOPLE IN OTHER VENUES WILL REACH FOR ITS FIVE READYMADE VERSIONS AS THEY WOULD FOR A COLD BEER IN FACT FOR THE SUMMER GIFT GIVING SEASON THIS MONTH IT HAS PACKAGED SOME OF THE MIZUWARI DRINKS WITH CANS OF BEER SUNTORY INTRODUCED THE DRINKS IN APRIL IT HOPES TO SELL 120 MILLION CANS AT 250 YEN 230 EACH IN THE YEAR ENDING MARCH 31 OTHER DISTILLERS HAVE FOLLOWED WITH CANNED GINANDTONIC AND VODKASOUR COCKTAILS SOME EFFORTSAVING PRODUCTS REQUIRE A BIT OF WORK BY THE CONSUMER IN FEBRUARY POKKA A SOFTDRINK MAKER INTRODUCED A 145YEN SERVING OF GRAPEFRUIT GELATIN PACKAGED IN A SODA CAN FOR BUYERS TO SLURP DOWN WITHOUT USING A SPOON BUT FIRST THEY MUST SHAKE THE CAN VIGOROUSLY TO GET THE CONTENTS TO A CONSISTENCY WHERE THEY WILL DRIBBLE OUT THE COMPANY ALSO OFFERS CREAM CARAMEL AND COFFEE VERSIONS IT HOPES TO SELL A TOTAL OF 24 MILLION CANS OF THE THREE PRODUCTS IN THE YEAR ENDING NEXT JAN 31 SHIKISHIMA BAKING A BREAD MAKER IN NAGOYA SAYS A YEAR'S RESEARCH WENT INTO ITS SELFBUTTERING BREAD INTRODUCED LAST FALL THE FINAL PRODUCT CONTAINS BITS OF MARGARINE THROUGHOUT EACH SLICE THE BITS MELT WHEN THE BREAD IS TOASTED CONSUMERS SEEM TO APPRECIATE SHIKISHIMA'S EFFORT SALES OF ITS 200YEN LOAF ARE RUNNING AT EIGHT MILLION YEN 73700 A MONTHSIX TIMES THE COMPANY'S ORIGINAL ESTIMATE SO FAR IT ISN'T CLEAR WHETHER CONSUMERS FEEL THE EFFORTSAVING ITEMS SACRIFICE QUALITY FOR CONVENIENCE BUT THEY HAVE SOME DRAWBACKS DRINKERS CAN'T ADJUST THE ALCOHOL CONTENT OF THE WHISKEY PRODUCTS WHICH ALSO COME WITHOUT THE ICE MIZUWARI IS USUALLY SERVED WITH AND THE BUTTERED BREAD COSTS A BIT MORE THAN A BASIC LOAF MORE AMERICAN COSMETICS COMPANIES ARE LAYING DIRECTMARKETING FOUNDATIONS IN JAPAN NU SKIN INTERNATIONAL A CLOSELY HELD SKINCARE AND NUTRITIONAL PRODUCTS COMPANY BASED IN PROVO UTAH STARTED SELLING SHAMPOO AND SOAP IN JAPAN IN APRIL THROUGH INDIVIDUALS WHO ACT AS SOLO DISTRIBUTORS THE COSMETICS OPERATION OF MARY KAY CORP BASED IN DALLAS NOW HAS SIX EMPLOYEES IN TOKYO PREPARING TO START A NETWORK OF INDIVIDUAL DISTRIBUTORS NEXT YEAR JAPAN IS A HUGE MARKET FOR BOTH COSMETICS AND THE DIRECTMARKETING INDUSTRY SAYS YUKO IKEZAWA A NU SKIN OFFICIAL IN TOKYO JAPANESE CONSUMERS SPOOKED BY THE COUNTRY'S SOFT ECONOMY ARE SHYING AWAY FROM STORES DIRECT MARKETERS SAY THAT MAY CREATE OPPORTUNITIES FOR THEM THE NEW ENTRANTS HOPE TO EMULATE THE SUCCESS OF AMWAY ADA MICH WHICH BROKE INTO JAPAN 14 YEARS AGO INDIVIDUAL JAPANESE HAVE LINED UP TO SELL AMWAY'S COSMETICS BECAUSE THEY'RE CHEAPER THAN PRESTIGIOUS EUROPEAN BRANDS BUT STILL HAVE FOREIGN CACHET POPULAR ACTRESSES SHOWED OFF THEIR AMWAY MAKEUP COLLECTIONS RECENTLY IN A FASHION MAGAZINE BUT JAPAN MAY NOT BE SUCH AN EASYLL FOR NEWCOMERS DIRECT MARKETERS' SALES GREW 62 TO 305 TRILLION YEN 281 BILLION IN THE YEAR ENDED MARCH 31 1992 COMPARED WITH DOUBLEDIGIT GROWTH SEVERAL YEARS AGO ACCORDING TO THE LATEST FIGURES AVAILABLE FROM THE JAPAN DIRECT SELLING ASSOCIATION COMPETITION IS GROWING TOO AVON PRODUCTS' JAPANESE UNIT IS TRYING TO RAISE ITS PROFILE BY SELLING ITS MAKEUP IN A SHOWROOM IN DOWNTOWN TOKYO IN ADDITION TO MARKETING THROUGH INDEPENDENT SELLERS WITH HEAVY BOOTS INCREASINGLY COOL AMONG TEENAGERS DURING WARM WEATHER SEIBU DEPARTMENT STORES HAS SET UP ITS FIRST SUMMER BOOTS CORNER DISPLAYING ROWS OF SUEDE ANKLE BOOTS AND TOUGH LEATHER WORK SHOES DINERS WHO LIKE TO CROON NOW HAVE A GUIDE OF THEIR OWN PIA A TOKYO PUBLISHER OFFERS A KARAOKE GUIDE TO 370 TOKYOAREA BARS AND RESTAURANTS THAT HAVE KARAOKE SINGALONG MACHINES DETAILS INCLUDE ENTRANCE FEES TYPE OF MUSIC ON TAP AND ATMOSPHERIC PROPS SUCH AS PLASTIC PALM TREES AND ILLUMINATED FISH TANKS 9307210158 930721 INTERNATIONAL JAPAN'S LDP BRACES FOR MORE TURMOIL AS TAX TRIAL OF PARTY MENTOR OPENS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S LIBERAL DEMOCRATIC PARTY REBUKED BY VOTERS IN SUNDAY'S ELECTION IS BRACING FOR MORE ROUGH SAILING SHIN KANEMARU ONCE THE MOST POWERFUL POLITICIAN IN JAPAN GOES ON TRIAL THURSDAY FOR TAX EVASION AND MANY HERE WONDER IF THE PROCEEDINGS WILL SULLY OTHER TOP POLITICIANS BOTH IN THE LDP AND THE NEW OPPOSITION MR KANEMARU WAS THE MENTOR OF MANY POLITICIANS STILL IN THE LDP AND SOME OF THOSE WHO RECENTLY BROKE AWAY TO FORM THEIR OWN PARTY MEANWHILE NEW PRESS REPORTS SAID PRIME MINISTER KIICHI MIYAZAWA WILL ANNOUNCE HIS RESIGNATION TOMORROW BECAUSE OF HIS PARTY'S TRAVAILS MR MIYAZAWA HAS BEEN HANGING ONTO HIS POSITION AND HAS YET TO CLEARLY STATE HIS PLANS BUT CALLS FOR HIM TO STEP DOWN HAVE MOUNTED FROM WITHIN HIS OWN PARTY YESTERDAY JUNICHIRO KOIZUMI MINISTER OF POSTS AND TELECOMMUNICATIONS RESIGNED FROM MR MIYAZAWA'S CABINET INSISTING THAT THE PREMIER STEP DOWN IMMEDIATELY THE FULL PARTY IS SCHEDULED TO CONVENE TO DISCUSS THE ELECTION AFTERMATH TOMORROW MR MIYAZAWA'S RESIGNATION COULD SET OFF MORE BATTLING WITHIN THE LDP AS PARTY MEMBERS TRY TO FIELD A NEW CANDIDATE FOR PRIME MINISTER THE LIST OF LIKELY SUCCESSORS TO MR MIYAZAWA INCLUDES TOSHIKI KAIFU A FORMER PRIME MINISTER WITH AN HONEST IMAGE BUT A WEAK POWER BASE RYUTARO HASHIMOTO A FORMER FINANCE MINISTER WITH A HIGH PUBLIC APPROVAL RATING MICHIO WATANABE A BLUNTSPEAKING FORMER FOREIGN MINISTER WHO HAS BEEN ILL LATELY AND KEIZO OBUCHI THE HEAD OF THE LDP FACTION PREVIOUSLY RUN BY MR KANEMARU THE LDP DESPITE ITS TROUBLES REMAINS THE LARGEST PARTY IN PARLIAMENT AND COULD COBBLE TOGETHER ENOUGH SUPPORT FROM OUTSIDE THE PARTY TO REMAIN IN CONTROL OF THE GOVERNMENT AND NAME THE NEXT PRIME MINISTER BUT ANALYSTS SAID ANTILDP FORCES WERE FINDING NEW COMMON GROUND AND MAY YET STITCH TOGETHER ENOUGH VOTES TO FORM JAPAN'S FIRST NONLDP GOVERNMENT SINCE THE PARTY WAS FORMED IN 1955 THE FATE OF THE PROLDP AND ANTILDP CAMPS IS LIKELY TO RISE AND FALL SEVERAL TIMES BEFORE PARLIAMENT CONVENES TO RESOLVE THE MATTER PROBABLY IN EARLY AUGUST IF THE OPPOSITION PREVAILS THE LEADING CANDIDATES FOR PREMIER WOULD BE EXLDP MEMBERS MORIHIRO HOSOKAWA FOUNDER OF THE JAPAN NEW PARTY AND TSUTOMU HATA A FORMER FINANCE MINISTER WHO HEADS THE JAPAN RENEWAL PARTY FOR NOW THOUGH ALL EYES ARE FOCUSED ON THE KANEMARU TRIAL AFTER MR KANEMARU 78 YEARS OLD WAS ARRESTED IN MARCH PROSECUTORS HAULED STACKS OF CASH AND GOLD BARS OUT OF HIS HOME AND OFFICE AN EVENT THAT FUELED PUBLIC OUTRAGE AND ACCELERATED THE CHAIN OF EVENTS THAT ENDED IN THE LDP'S DEFEAT IN SUNDAY'S PARLIAMENTARY ELECTIONS A MAJOR SOURCE OF MR KANEMARU'S HIDDEN INCOME WAS ALLEGEDLY THE CONSTRUCTION INDUSTRY WHICH WAS SEEKING HIS HELP IN WINNING PUBLIC WORKS CONTRACTS TOKYO IS ABUZZ WITH SPECULATION ABOUT WHETHER MR KANEMARU OR PROSECUTORS IN THE CASE WILL IMPLICATE OTHER POLITICAL FIGURES AS HAVING RECEIVED ILLEGAL FUNDS INVESTIGATORS HAVE ALREADY AMASSED BOXES OF DOCUMENTS ALREADY TWO LOCAL JAPANESE POLITICIANS HAVE BEEN ARRESTED ON SUSPICION OF TAKING BRIBES BASED ON EVIDENCE DUG UP IN THE KANEMARU INQUIRY I DON'T THINK THERE ARE ANY JAPANESE POLITICIANS WHO AREN'T CRIMINALS ESPECIALLY IN THE LDP MINORU MORITA A POLITICAL COMMENTATOR SAID AT A BRIEFING THOSE POLITICIANS WHO ARE VERY UNFORTUNATE IN HAVING THE RECORDS OR DATA IN THE HANDS OF THE PUBLIC PROSECUTORS WILL BE THE ONES CAUGHT UNTIL HIS FALL MR KANEMARU EPITOMIZED THE BACKROOM POLITICS NOW UNDER ATTACK HE RAISED AND SPENT HUGE AMOUNTS OF MONEY TO BUILD HIS POLITICAL KINGDOM HE APPOINTED PRIME MINISTERS INCLUDING MR MIYAZAWA AND MADE THEM HIS PUPPETS LAST AUGUST MR KANEMARU ADMITTED TAKING ILLEGAL CAMPAIGN CONTRIBUTIONS FROM A PARCEL DELIVERY COMPANY WITH REPUTED GANGSTER TIES HE WAS FORCED TO QUIT POLITICS AND HIS DEPARTURE CREATED A POWER VACUUM WITHIN THE LDP THEN CAME MR KANEMARU'S ARREST WHICH GAVE NEW POWER TO THOSE IN PARLIAMENT WHO ADVOCATED SWEEPING POLITICAL REFORM MR MIYAZAWA'S FAILURE TO PUSH THROUGH REFORM PROMPTED DEFECTIONS FROM THE PARTY AND LED TO THE LDP'S LOSS OF ITS MAJORITY IN PARLIAMENT 9307210157 930721 WHO'S NEWS ST PAUL COS ST PAUL COS ST PAUL MINN JOHN A ROLLWAGEN FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CRAY RESEARCH INC WAS NAMED A SENIOR ADVISER TO ST PAUL VENTURE CAPITAL INC A UNIT OF THIS INSURER 9307210156 930721 WHO'S NEWS OLSTEN CORP OLSTEN CORP WESTBURY NY GERALD KAPALKO SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT WAS NAMED EXECUTIVE VICE PRESIDENT AND A CORPORATE OFFICER MR KAPALKO 46 YEARS OLD WILL CONTINUE TO PERFORM HIS PREVIOUS DUTIES WITH THIS TEMPORARY PERSONNEL FIRM AND TAKE OVER ADDITIONAL RESPONSIBILITY FOR THE LICENSING DIVISION FROM JIM GRAESSLE 65 WHO RETIRED 9307210155 930721 WHO'S NEWS RAMTRON INTERNATIONAL CORP RAMTRON INTERNATIONAL CORP COLORADO SPRINGS COLO WAHIB SAID BINZAGR 59 YEARS OLD WAS ELECTED TO THE BOARD OF THIS SEMICONDUCTOR COMPANY MR BINZAGR IS CHAIRMAN OF SAUDI CAIRO BANK SAUDI INDUSTRIAL DEVELOPMENT CO AND ALALAMIYA INSURANCE CO AND HOLDS POSITIONS ON OTHER SAUDI ARABIAN COMPANY BOARDS HIS APPOINTMENT BRINGS THE NUMBER OF DIRECTORS TO EIGHT 9307210154 930721 WHO'S NEWS PLAZA HOME MORTGAGE CORP PLAZA HOME MORTGAGE CORP SANTA ANA CALIF JAMES M WELD 40 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE MORTGAGE BANKING COMPANY JACK FRENCH CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PLAZA WILL ASSUME THE ADDITIONAL TITLE OF PRESIDENT MR WELD DIDN'T GIVE A REASON FOR HIS DEPARTURE EXCEPT TO SAY THAT HE HAS ACHIEVED AND EXCEEDED HIS GOALS AT THE COMPANY 9307210153 930721 WHO'S NEWS ECOSCIENCE CORP ECOSCIENCE CORP WORCESTER MASS KENNETH S BOGER 46YEAROLD GENERAL COUNSEL OF THIS BIOPESTICIDES CONCERN WAS ELECTED TO THE ADDITIONAL POST OF DIRECTOR HE SUCCEEDS THE RETIRING RICHARD E LYNG 75 WHO SERVED AS SECRETARY OF AGRICULTURE UNDER PRESIDENT REAGAN 9307210152 930721 WHO'S NEWS MARGARETTEN FINANCIAL CORP MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ LARRY K MILLS 44 YEARS OLD WAS NAMED VICE PRESIDENT FINANCE A NEW POSITION AT THIS RESIDENTIAL MORTGAGE BANKING COMPANY MR MILLS HAD BEEN SENIOR VICE PRESIDENT AND TREASURER OF EQUITABLE LIFE ASSURANCE CO 9307210151 930721 WHO'S NEWS FEDERAL NATIONAL MORTGAGE ASSOCIATION FEDERAL NATIONAL MORTGAGE ASSOCIATION WASHINGTON JOSEPH E AMATO 34 YEARS OLD WAS NAMED VICE PRESIDENT FOR PORTFOLIO STRATEGY A NEW POSITION AT THIS PROVIDER OF FUNDS FOR HOME MORTGAGES MR AMATO HAD BEEN DIRECTOR OF REGULATORY POLICY FOR FANNIE MAE 9307210150 930721 WHO'S NEWS OWENSCORNING FIBERGLAS CORP OWENSCORNING FIBERGLAS CORP TOLEDO OHIO CHARLES R BLAND 44 YEARS OLD VICE PRESIDENT AND CONTROLLER WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF ASIA/PACIFIC FOR THIS FIBERGLASS MAKER 9307210149 930721 TREASURY PLANS TO SELL 244 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO RAISE 273 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 217 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON OCT 28 1993 AND JAN 27 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G32 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794H64 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9307210148 930721 TECHNOLOGY AMDAHL POSTS LOSS FOR ITS 2ND PERIOD ON REVENUE PLUNGE BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL AMDAHL CORP CONTINUING TO BE HURT BY DWINDLING DEMAND FOR MAINFRAME COMPUTERS AND BY A LAGGARD WORLD ECONOMY IN GENERAL SAID FISCAL SECONDQUARTER REVENUE FELL ONETHIRD CAUSING IT TO POST ITS SECOND CONSECUTIVE QUARTERLY LOSS AMDAHL REPORTED A LOSS OF 237 MILLION OR 21 CENTS A SHARE FOR THE QUARTER ENDED JUNE 25 THAT COMPARED WITH NET INCOME OF 169 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE PLUNGED TO 4632 MILLION FROM 693 MILLION THE SUNNYVALE CALIF MAINFRAMECOMPUTER MAKER'S RESULTS WERE IN LINE WITH EXPECTATIONS AND FOLLOW A FIRSTQUARTER RESTRUCTURING CHARGE OF 1774 MILLION OR 157 A SHARE BUT ANALYSTS SAID MEETING DIM EXPECTATIONS IS NOT MUCH OF AN ACCOMPLISHMENT AMDAHL STOCK CLOSED UNCHANGED AT 5 A SHARE IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE COMPANY BLAMED THE SECONDQUARTER BAD NEWS ON A LETHARGIC INTERNATIONAL MARKET ESPECIALLY IN EUROPE AND THE SHIFT TOWARD NETWORK COMPUTING BUT THE COMPANY SAID A SURVEY OF AMDAHL CUSTOMERS FOUND THAT THE RUSH TO NETWORKS WAS NOT AS PELLMELL AS MANY ANALYSTS BELIEVE MEANING THAT A COMPETITIVE NICHE STILL EXISTS FOR PRODUCERS OF THE BIG MACHINES BUT CURT ROHMAN AN ANALYST WITH FIRST BOSTON CORP SAID IT WAS AN UGLY QUARTER ADDING THAT THE MAINFRAME MARKET WAS MORE MORIBUND THAN AMDAHL WAS ADMITTING TO STAY AFLOAT THE COMPANY HAS SLASHED MANUFACTURING CAPACITY AS WELL AS ITS WORK FORCE LAYING OFF 1250 PEOPLE THIS YEAR OR OVER 13 OF ITS STAFF BY REDUCING INVENTORIES LOWERING CAPITAL SPENDING AND COLLECTING RECEIVABLES FASTER THE COMPANY SAID IT GENERATED A POSITIVE CASH FLOW OF 42 MILLION IN THE LATEST QUARTER JOHN B JONES JR AN ANALYST AT SALOMON BROTHERS SAID THAT CRASHING MAINFRAME PRICES COULD CONVINCE MANY USERS TO KEEP USING THE BIG SYSTEMS GIVING MANUFACTURERS A LIFELINE AS LONG AS COSTS ARE PARED TO THE BONE IF THESE COSTS KEEP COMING DOWN IT'S A VIABLE BUSINESS HE SAID AMDAHL IS ALSO BANKING THAT IT CAN BENEFIT FROM RECENTLY FORMED STRATEGIC ALLIANCES IN JUNE AMDAHL AND GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS UNIT FORMED A NEW BUSINESS TO HELP COMPANIES MOVE THEIR MAINFRAME SOFTWARE TO LESSPOWERFUL MACHINES LAST WEEK AMDAHL SAID IT HAD AN AGREEMENT WITH FUJITSU LTD OF JAPAN AND ICL PLC OF GREAT BRITAIN TO JOINTLY DEVELOP AN OPERATING SYSTEM IN THE UNIX LANGUAGE 9307210147 930721 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB DEMOCRATS ARE IN DANGER OF TURNING CLINTONOMICS INTO A BOWL OF MUSH ONE THAT DOESN'T REALLY TACKLE THE DEFICIT SPARK INVESTMENTS OR HAVE ANY CLEAR DIRECTION PRESIDENT CLINTON STILL HAS THE OPPORTUNITY TO CHANGE THIS BUT DOING SO MEANS HE WILL HAVE TO PINPOINT WHAT HE REALLY WANTS OUT OF THE ECONOMIC PLAN CONGRESS IS TRYING TO COMPLETE AND WILL HAVE TO START SAYING SO MORE CLEARLY IN THE NEXT TWO WEEKS THE PRESIDENT MADE A START IN HIS REMARKS TO LAWMAKERS YESTERDAY BUT ONE SPEECH ALONE CAN'T DISPEL THE IMPRESSION THAT DEMOCRATS ON CAPITOL HILL TOOK AWAY FROM BRIEFINGS BY CLINTON ADVISERS THIS WEEK HAVING LET HIS CENTERPIECE ENERGY TAX GET STRANGLED MR CLINTON HAS SEEMED INCREASINGLY INCLINED TO LABEL AS A VICTORY ANYTHING THAT SQUEAKS THROUGH CONGRESS AS A RESULT HE IS SLIDING TOWARD AN AGREEMENT THAT COULD END UP BEING LITTLE MORE THAN A REPEAT OF THE 1990 BUDGETCUTTING DEAL THAT GEORGE BUSH NEGOTIATED WITH CONGRESS A KIND OF LOWESTCOMMONDENOMINATOR PACKAGE THAT FORMER CONGRESSIONAL BUDGET OFFICE DIRECTOR RUDOLPH PENNER CALLS A PRAGMATIC HODGEPODGE IF THAT IS THE END RESULT MR CLINTON WILL HAVE A HARD TIME CLAIMING HE HAS REALLY CHANGED WASHINGTON ALREADY THE ECONOMIC PLAN THAT IS TAKING SHAPE IS UNCOMFORTABLY SIMILAR TO THE 1990 PACKAGE WHICH SATISFIED NOBODY AND ALLOWED THE DEFICIT TO GROW BY 50 BILLION IN THE PAST TWO YEARS IN ESSENCE THE 1990 BUDGET DEAL WAS DESIGNED TO SLICE 496 BILLION OUT OF FUTURE DEFICITS LARGELY BY TRIMMING DEFENSE SPENDING BUMPING UP TAXES IN THE TOP BRACKETS CUTTING ABOUT 44 BILLION IN MEDICARE PAYMENTS CAPPING SOME DISCRETIONARY SPENDING PUTTING A FIVECENTAGALLON TAX ON GASOLINE AND LOWERING INTEREST PAYMENTS ON THE DEBT NOW TAKE A LOOK AT WHAT IS EMERGING FROM THE CURRENT DELIBERATIONS A PLAN THAT WOULD SLICE 500 BILLION OUT OF FUTURE DEFICITS LARGELY BY TRIMMING DEFENSE SPENDING RAISING TOP TAX RATES CUTTING ABOUT 50 BILLION IN MEDICARE PAYMENTS CAPPING SOME DISCRETIONARY SPENDING PUTTING ABOUT A FIVECENTAGALLON TAX ON GASOLINE AND LOWERING INTEREST PAYMENTS ON THE DEBT SOUND FAMILIAR FOR THE CLINTON TEAM THIS IS TOO CLOSE FOR COMFORT SO THE PRESIDENT NOW NEEDS TO FOCUS ON SAVING THE KEY INGREDIENTS THAT WERE TO MAKE HIS PLAN DIFFERENT FROM WHAT THE WASHINGTON MULCHING MACHINE WAS CHURNING OUT BEFORE THAT MEANS FOUR THINGS BIGGER DEFICIT REDUCTIONS THE CLINTON TEAM KNOWS THAT IT HAS TO KEEP SHOOTING FOR ITS TARGET OF 500 BILLION IN DEFICIT CUTS OR BE RIDICULED BY ROSS PEROT AND HIS FOLLOWERS FOR BLINKING THE PROBLEM IS THAT THE SENATE HAS NOW KILLED MR CLINTON'S BROADBASED ENERGY TAX WHICH WAS TO PROVIDE SIGNIFICANT AMOUNTS OF MONEY SOON AND MORE IN YEARS AHEAD TO KEEP THE DEFICIT FROM SHOOTING BACK UP LATER IF THIS STRUGGLE IS TO BE ABOUT DEFICIT REDUCTION MR CLINTON NEEDS TO START FIGHTING HARDER FOR THE 43 CENTAGALLON GASOLINE TAX THAT REMAINS OR ARGUE THAT IT SHOULD BE HIGHER THAT SHOULDN'T BE SO HARD IF THERE IS EVER A TIME TO SELL A GAS TAX IT SHOULD BE NOW WITH OIL PRICES SLUMPING TO AROUND 17 A BARREL MORE PROGRESSIVE POLICIES THE CLINTON PLAN WHICH PUTS FAR MORE OF ITS TAX BURDEN ON THE RICH IS INDEED MORE PROGRESSIVE THAN ITS PREDECESSORS YET MR CLINTON HAS FAILED TO DISPEL THE IMPRESSION HIS PLAN MOSTLY BURDENS THE MIDDLE CLASS IN TRUTH THE TAX PART OF THIS PACKAGE DOES HAVE A VERY TRADITIONAL DEMOCRATIC TONE TO IT SAYS KANSAS DEMOCRATIC REP DAN GLICKMAN IT HASN'T BEEN PORTRAYED THAT WAY MORE INVESTMENTS TO BOOST SMALL BUSINESSES IN ITS EAGERNESS TO KILL THE ENERGY TAX THE SENATE ALSO KILLED INVESTMENT INCENTIVES THAT WOULD GIVE THE PACKAGE A DISTINCTIVELY DEMOCRATIC JOBCREATING FLAVOR MR CLINTON HAS PRACTICAL AND POLITICAL REASONS TO WANT THEM BACK REAL SPENDING CUTS THE REALITY IS THAT THE 1990 DEAL'S SPENDING CAPS ARE WORKING AND CONGRESS HAS STARTED GOING FURTHER BY NICKING AWAY HERE AND THERE AT DISCRETIONARY SPENDING PROGRAMS THE PROBLEM IS TWOFOLD A THOROUGHLY CYNICAL PUBLIC ISN'T CONVINCED THAT THIS IS REALLY HAPPENING AND THE BIG MONEY TO BE CUT LIES ELSEWHERE IN POLITICALLY SENSITIVE ENTITLEMENT PROGRAMS ONE WAY FOR MR CLINTON TO SHOW THAT HE IS SERIOUS ABOUT SPENDING CUTS WOULD BE TO ACCEPT THE SENATE'S PROPOSED 58 BILLION CUT IN PROJECTED MEDICARE SPENDING RATHER THAN THE HOUSE'S 50 BILLION ONE WE HAVE TO DO SOMETHING WITH ENTITLEMENTS AND IT HAS TO BE IN THIS BILL SAYS REP GLICKMAN THESE ARE ALL THINGS MR CLINTON WANTS AS HE MADE CLEAR IN HIS REMARKS YESTERDAY THE TRICK IS TO BE ACTIVE NOT PASSIVE IN GETTING THEM NEBRASKA SEN BOB KERREY NEATLY SUMMARIZES THE RISK FOR DEMOCRATS THE TEMPTATION HE SAID IN A TELEVISION INTERVIEW SUNDAY IS TO JUST TRY TO SPLIT THE DIFFERENCE TO TRY TO DO THE SAME OLD THING THAT WE'VE DONE IN THE PAST 9307210146 930721 TECHNOLOGY MEMORYCHIPS SUPPLY IS HIT BY JAPAN BLAST BY JIM CARLTON AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL PERSONALCOMPUTER PRICES MAY BEGIN FALLING A BIT MORE SLOWLY SOON BECAUSE OF A DEVELOPING SHORTAGE OF CRUCIAL MEMORY CHIPS AND A RECENT SHARP SPIKE IN CHIP PRICES FOLLOWING AN EXPLOSION IN A JAPANESE PLASTICS PLANT MEMORYCHIP PRICES WHICH NORMALLY FALL ABOUT 30 ANNUALLY HAD HELD STEADY FOR MOST OF THIS YEAR BUT DURING THE PAST 10 DAYS ACCORDING TO SOME CHIP BUYERS PRICES ON AN INFORMAL SPOT MARKET FOR MEMORY CHIPS CALLED DYNAMIC RANDOMACCESS MEMORIES OR DRAMS HAVE RISEN AS MUCH AS 50 THE SPOT MARKET COMPRISES ONLY ABOUT 5 OF ALL DRAMS CHIP MAKERS SAY THAT THE BOOM IN PC SALES DURING THE PAST YEAR HAS CREATED FAR GREATER THAN EXPECTED DEMAND FOR THE DRAMS THAT DEMAND COMES AFTER TWO YEARS DURING WHICH THE WORLD'S BIGGEST DRAM PRODUCERS THE JAPANESE HAVE BEEN SCALING DOWN INVESTMENT IN NEW DRAM FACTORY LINES TO MAKE MATTERS WORSE AN EXPLOSION EARLY THIS MONTH AT A SUMITOMO CHEMICAL CO FACTORY WHICH MAKES ABOUT 50 OF THE WORLD'S SUPPLY OF A SOPHISTICATED PLASTIC RESIN COMMONLY USED TO ENCASE CHIPS HAS CAUSED PANIC IN THE INFORMAL SPOT MARKET FOR MEMORY CHIPS MOST BIG COMPUTER COMPANIES SIGN LONGTERM SUPPLY CONTRACTS TO INSULATE THEMSELVES FROM SUDDEN CHIPPRICE SWINGS AND ONLY ABOUT 5 OF DRAM SALES OCCUR ON THE SPOT MARKET ESTIMATES DATAQUEST INC A MARKETRESEARCH FIRM STILL SPOT PRICES CAN INDICATE WHERE LONGTERM PRICES ARE HEADED PRICES ON MEMORYCHIP MODULES MOST COMMONLY USED IN PCS LITTLE CIRCUIT BOARDS THAT CHAIN TOGETHER NINE CHIPS AND HOLD ABOUT FOUR MILLION CHARACTERS OF DATA HAVE RISEN TO ABOUT 190 EARLY THIS WEEK FROM 133 10 DAYS EARLIER SAYS MARK MEINKE PRODUCT MANAGER FOR DIGITEK INTERNATIONAL INC A FALLS CHURCH VA DISTRIBUTOR OF ELECTRONIC PARTS PRICES FELL BACK A BIT YESTERDAY BUT A LOT OF THE BROKERS ARE PANICKED MR MEINKE SAID BUT HE ADDED THAT ONCE THE UNCERTAINTY OVER THE SUMITOMO EXPLOSION IS CLEARED UP PRICES COULD FALL JUST AS FAST AS THEY ROSE IT'S A COMMODITY MARKET SAID MR MEINKE WHO ADDED THAT HE WAS ONCE A FOREIGNCURRENCY TRADER MEMORY CHIPS ARE LIKE SOYBEANS MOST CHIP MAKERS ARE PLAYING DOWN THE IMPACT OF THE SUMITOMO EXPLOSION SAYING THEY HAVE SUPPLIES THAT LAST SEVERAL MONTHS AND EXPECT ALTERNATE SUPPLIERS TO STEP UP THEIR PRODUCTION NONETHELESS MOST HAVE HASTILY BEGUN STUDYING THEIR OPTIONS SHOULD RESIN SUPPLIES BEGIN RUNNING OUT MOTOROLA INC AND ADVANCED MICRO DEVICES INC FOR EXAMPLE BOTH SAY THEY HAVE ASSEMBLED TASK FORCES TO SEEK ALTERNATE WAYS TO ENCASE CHIPS THAT NOW ARE EMBEDDED IN THE PLASTIC AND CONCEDES A SPOKESMAN FOR TEXAS INSTRUMENTS INC WHOSE TOP MEMORYCHIP MANAGERS WERE HUDDLED IN MEETINGS YESTERDAY TO DISCUSS THE IMPACT OF THE JAPANESE EPOXYPLANT EXPLOSION WE STILL DON'T HAVE ENOUGH INFORMATION TO UNDERSTAND THE LONGTERM ISSUE WHAT'S CERTAIN THOUGH IS THAT THE CHIP INDUSTRY HAS A MORE FUNDAMENTAL PROBLEM DEMAND IS GROWING FASTER THAN SUPPLY THE JAPANESE STUNG BY TRADE PRESSURE FROM THE US AND BY THIN PROFITS IN THE DRAM MARKET HAVE CUT BACK THEIR INVESTMENTS IN NEW PLANTS NEW CHIP PLANTS IN SOUTH KOREA AND TAIWAN WHILE COMING ON LINE RAPIDLY HAVEN'T SOPPED UP THE ADDED DEMAND DREW D PECK TECHNOLOGY ANALYST FOR DONALDSON LUFKIN & JENRETTE SAID THE SHORTAGES COULD LAST AS LONG AS 18 MONTHS BEFORE MANUFACTURERS GET SUFFICIENT PRODUCTION CAPACITY ON LINE IN THE MEANTIME HE SAID DRAM PRICES SHOULD REMAIN HIGH POTENTIALLY PUTTING A BRAKE ON THE PLUNGE IN PRICES FOR PERSONAL COMPUTERS AS WELL AS SLOWING THE HUGE PC DEMAND BIG PC MAKERS FOR THEIR PART HAVEN'T EXPERIENCED EITHER A SHORTAGE OF MEMORY CHIPS OR A PRICE SPIKE THAT MIGHT LATER TURN UP AT THE CHECKOUT STAND BIG COMPUTER MAKERS DEPEND ON LONGTERM LOCKEDIN DRAM SUPPLIES AND SAY THAT THE SPOT MARKET IS LIMITED TO SMALLER SECONDTIER MANUFACTURERS THAT TIER HOWEVER REPRESENTS AS MUCH AS 50 OF THE MARKET 9307210145 930721 ENTERPRISE SMALL BIOTECH COMPANIES FINDING EAGER BIG BUDDIES EUROPELED PARTNERSHIP BOOM IN 1ST HALF OF 93 REVERSES YEARLONG LULL BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL SMALL BIOTECHNOLOGY COMPANIES ARE SUDDENLY FINDING BIG PARTNERS AT A FASTER PACE REVERSING A SUSTAINED SLOWDOWN THAT STARTED IN EARLY 1992 DURING THE FIRST HALF OF 1993 THESE SMALL CONCERNS FORGED 62 MAJOR ALLIANCES WITH BIG PHARMACEUTICAL MAKERS REPORTS RECOMBINANT CAPITAL A SAN FRANCISCO FINANCIALCONSULTING CONCERN THAT IS JUST 13 SHORT OF THE 75 SIGNIFICANT ALLIANCES FOR ALL OF 1992 THIS YEAR'S PACE WHICH INITIALLY HAD SEEMED SLUGGISH NOW MAY EXCEED THE RECORD NUMBER OF 115 COLLABORATIONS SET IN 1991 RECOMBINANT PREDICTS THE BOOM IS BEING PROPELLED PRIMARILY BY EUROPEAN AND JAPANESE COMPANIES' RENEWED INTEREST IN TAPPING INNOVATIVE US TECHNOLOGY MANY FOREIGN CONCERNS WANT TO EXPLOIT THEIR US MARKET PRESENCE BY ACQUIRING MORE PRODUCTS TO SELL SAYS VENTURE CAPITALIST STEVEN REIDY OF EUCLID PARTNERS IN NEW YORK BY CONTRAST UNCERTAINTY OVER THE NATIONAL DRIVE TO CONTAIN HEALTHCARE COSTS HAS SOMEWHAT TEMPERED US DRUG MAKERS' INTEREST IN SUCH DEALS AMONG THE BIG PHARMACEUTICAL COMPANIES LOOKING FOR SMALLER US PARTNERS EUROPEANS SEEM TO BE THE MOST ACTIVE AT THE MOMENT SAYS MARK EDWARDS PRESIDENT OF RECOMBINANT THE BIGGEST TRANSACTION SO FAR IN 1993 WAS RHONEPOULENC RORER INC'S 113 MILLION PURCHASE LAST MONTH OF A 37 STAKE IN APPLIED IMMUNE SCIENCES INC SANTA CLARA CALIF FRANCE'S RHONEPOULENC SA CONTROLS RHONEPOULENC RORER BRITAIN'S WELLCOME PLC AND THE US UNIT OF BRITAIN'S SMITHKLINE BEECHAM PLC ALSO HAVE BEEN BUSY IN APRIL A WELLCOME UNIT SAID IT WOULD TEST AND EVALUATE HYBRIDON INC'S COMPOUNDS FOR CANCER THERAPY SMITHKLINE HAS RECENTLY ANNOUNCED ALLIANCES WITH HUMAN GENOME SCIENCES INC ROCKVILLE MD AND WITH CEPHALON INC IN WEST CHESTER PA IN ADDITION OTHER EUROPEAN COMPANIES SUCH AS THE US UNIT OF GERMANY'S BOEHRINGER MANNHEIM GMBH KABI PHARMACIA AB OF SWEDEN AND MEDEVA PLC OF BRITAIN HAVE RECENTLY ANNOUNCED SIGNIFICANT ALLIANCES WITH SMALL US BIOTECHNOLOGY CONCERNS SIMILARLY JAPANESE CHEMICAL AND DRUG COMPANIES ARE GETTING BACK INTO THE ALLIANCE ACT AFTER A LONG LULL LATE LAST MONTH TOKYO'S EISAI CO SAID THAT IT WOULD COLLABORATE WITH GENPHARM INTERNATIONAL INC OF MOUNTAIN VIEW CALIF TO DEVELOP HUMAN ANTIBODIES FROM GENETICALLY TREATED MICE DURING THE FIRST HALF KISSEI PHARMACEUTICAL CO AND SUNTORY LTD ALSO UNVEILED PLANS TO TEAM UP WITH SMALL US COMPANIES FOR THE DEVELOPMENT OF NEW DRUGS THE JAPANESE ARE SHOWING A RENEWED INTEREST BECAUSE THEY NEED TO DIVERSIFY AND THE NUMBERS SEEM RIGHT SAYS SANFORD ROBERTSON OF ROBERTSON & STEPHENS A SAN FRANCISCO INVESTMENT BANKER LOWER STOCK PRICES FOR US BIOTECHNOLOGYCOMPANIES PLUS THE STRENGTHENING YEN MAKE THESE TRANSACTIONS MORE COMPELLING HE SAYS SINCE APRIL MR ROBERTSON ADDS HIS FIRM HAS ARRANGED TALKS BETWEEN JAPANESE SUITORS AND 17 US BIOTECH COMPANIE SENDING A LONG PERIOD OF INACTIVITY THE INCREASED DEALMAKING ALSO REFLECTS THE WORSENING CAPITAL CRUNCH FACED BY SMALL BIOTECHNOLOGY COMPANIES SUCH FIRMS HAVE LITTLE CHOICE BUT TO REACH INTO THE DEEP POCKETS OF THE BIG CORPORATIONS SAYS VENTURE CAPITALIST BARRY WEINBERG OF CW VENTURES NEW YORK SMALL COMPANIES HAVE LOST ACCESS TO CAPITAL BECAUSE THE INITIAL PUBLIC OFFERING MARKET HAS SHUT DOWN HE SAYS COLLABORATIONS ARE A WAY TO GET LONGTERM FUNDING FOR ARRIS PHARMACEUTICAL CO PAYMENTS FROM ITS MOST RECENT CORPORATE PARTNERSHIPS WITH KABI PHARMACIA AB OF SWEDEN AND WITH AMGEN INC WILL GREATLY ACCELERATE THE COMPANY'S DRUG DEVELOPMENT PROGRAM SAYS JOHN WALKER CHIEF EXECUTIVE OFFICER OF THE SMALL BIOTECH FIRM IN SOUTH SAN FRANCISCO CALIF THANKS TO THESE PARTNERSHIPS' UNSPECIFIED PAYMENTS DEVELOPMENT OF A KEY PRODUCT LINE WILL BE FULLY FUNDED MR WALKER SAYS ARRIS ALREADY HAS RAISED MORE THAN 30 MILLION IN CAPITAL FROM PRIVATE INVESTORS BUT NEEDS MORE RESEARCH FINANCING IF THESE PARTNERSHIPS HADN'T BEEN ARRANGED WE'D HAVE TO GO AT A SLOWER PACE AND FOCUS ON JUST ONE TARGET HE ADDS AT A TIME OF SQUEEZED PROFITS COLLABORATIONS WITH SMALL BIOTECH FIRMS HAVE BECOME MORE COMPELLING FOR BIG PHARMACEUTICAL COMPANIES TOO THE GIANTS LIKE THE IDEA THAT THEY CAN PAY AS THEY GO WITHOUT MAKING A LARGE INITIAL PAYMENT THE DEALS ARE DESIGNED IN SUCH A WAY TO MAKE IT EASY FOR LARGE COMPANIES TO THROW SOME MONEY AT POTENTIALLY EXCITING PROJECTS AND SEE WHAT HAPPENS TO THEM SAYS MR WEINBERG THE VENTURE CAPITALIST THAT'S PRECISELY THE PLAN IN THE ALLIANCE BETWEEN SMITHKLINE AND CEPHALON UNDER THEIR AGREEMENT CEPHALON SCIENTISTS WILL WORK ON DEVELOPING WAYS TO INHIBIT CALPAIN AN ENZYME THAT CONTRIBUTES TO STROKE AND OTHER NEUROLOGICAL DISORDERS SMITHKLINE WILL HELP THE PRODUCT THROUGH CLINICAL TESTING AND REGULATORY APPROVAL THEN MARKET THE PRODUCT GLOBALLY AS WITH MOST RECENT COLLABORATIVE ARRANGEMENTS SMITHKLINE'S PAYMENTS TO CEPHALON WILL BE BASED ON MILESTONES THESE ARE PREDETERMINED GOALS THAT MUST BE ACHIEVED TO TRIGGER PAYMENTS IF THE ENTIRE PROJECT GOES AS PLANNED CEPHALON SAYS IT COULD RECEIVE AS MUCH AS 25 MILLION IN RESEARCH SUPPORT AND ROYALTIES IF WE HAD TO DO THE PROJECT OURSELVES IT COULD TAKE US SIX TO SEVEN YEARS AND COST US AS MUCH AS 250 MILLION SAYS BRUCE PEACOCK CEPHALON'S CHIEF FINANCIAL OFFICER HE ESTIMATES THAT COST BASED ON INCREASED INVESTMENTS IN LABORATORY AND TESTING FACILITIES AS WELL AS HIRING A CLINICAL TESTING STAFF OF UP TO 40 PEOPLE COLLABORATING WITH SMITHKLINE ALSO WILL MEAN THAT CEPHALON SCIENTISTS HAVE ACCESS TO THE BIGGER COMPANY'S FACILITIES AND PERSONNEL WHAT WE'RE GETTING IS THE EXPERIENCE AND THE TECHNICAL EXPERTISE OF AN ESTABLISHED PHARMACEUTICAL COMPANY SAYS MR PEACOCK IN ADDITION HE SAYS WE HAVE 7 MILLION TO 8 MILLION COMING IN EACH YEAR DEALMAKERS EXPECT THE RECENT SPATE OF COLLABORATIONS WILL CONTINUE BUT FORESEE FEWER BLOCKBUSTER DEALS SUCH AS THE RHONEPOULENC AND APPLIED IMMUNE SCIENCES ONE AMID THE US DRUG INDUSTRY'S UNCERTAIN ECONOMIC AND REGULATORY CLIMATE THE MOVEMENT IS TOWARD A LOT OF TARGETED DEALS SAYS ATTORNEY JOEL MARCUS OF BROBECK PHLEGER & HARRISON A LOS ANGELES LAW FIRM YOU'RE GOING TO SEE MORE AND MORE DEALS WHERE THE BIG GUY WANTS SPECIFIC THINGS AND SPECIFIC TECHNOLOGIES 9307210144 930721 A GUTSY NUCLEAR INSPECTOR IS MUZZLED BY THERESE RAPHAEL THE DISCOVERY OF SADDAM HUSSEIN'S CLANDESTINE NUCLEAR WEAPONS PROGRAM IN 1991 BROUGHT TO LIGHT A POROUS GLOBAL NONPROLIFERATION SYSTEM THAT HAS YET TO BE PLUGGED THE CONSEQUENCES OF WEAK ENFORCEMENT ARE CLEAR IN SOUTH KOREA THIS MONTH PRESIDENT CLINTON SAID THAT NORTH KOREA WHICH HAS BEEN REFUSING UNITED NATIONS INSPECTIONS OF ITS NUCLEAR FACILITIES POSES THE NIGHTMARE OF NUCLEAR ANNIHILATION MEANWHILE THE UN REPEATEDLY HAS ENCOUNTERED IRAQI INTRANSIGENCE REGARDING INSPECTIONS AND THE PLACEMENT OF MONITORING CAMERAS AT MISSILE TESTING SITES AT THE FRONT LINE OF THE BATTLE AGAINST PROLIFERATION IS THE INTERNATIONAL ATOMIC ENERGY ASSOCIATION IAEA WITH SOME 200 TRAINED INSPECTORS COVERING OVER 900 NUCLEAR FACILITIES IN MORE THAN 50 COUNTRIES THIS UN AGENCY IS WELLPOSITIONED TO SNIFF OUT PROLIFERATORS BUT IT HASN'T DONE SO THE ORGANIZATION LABORS UNDER A SCHIZOPHRENIC MANDATE IT IS BOTH A PROMOTER OF THE PEACEFUL USES OF NUCLEAR ENERGY AND A WATCHDOG AGAINST PROLIFERATION THOUGH IT IS AN EFFECTIVE PROMOTER THE IAEA IS A LOUSY POLICEMAN IT HAS BEEN COOPTED BY GOVERNMENTS RESISTING INSPECTIONS AND BY THE AGENCY'S SEENOEVIL MENTALITY A RECENT ATTEMPT TO SILENCE DAVID KAY A FORMER IAEA INSPECTOR WHOSE GUTSY INSPECTION TACTICS LED TO THE DISCOVERY OF IRAQ'S WEAPONS PROGRAM IS A BLATANT EXAMPLE AS LEADER OF AN INSPECTION TEAM IN IRAQ IN 1991 MR KAY ESCHEWED THE IAEA'S CODE OF DEFERENCE AND STORMED SUSPICIOUS FACILITIES THE TEAM UNCOVERED THREE MAJOR URANIUM ENRICHMENT PROGRAMS AND EVIDENCE THAT IRAQ HAD BEEN INDEPENDENTLY PROCESSING PLUTONIUM WHEN THE IAEA'S VIENNA BUREAUCRACY STALLED MR KAY COMMUNICATED HIS FINDINGS TO THE UN SPECIAL COMMISSION IN NEW YORK MR KAY'S INSPECTIONS EXPOSED NOT ONLY SADDAM HUSSEIN'S NEFARIOUS DESIGNS BUT ALSO THE FUNDAMENTAL WEAKNESSES OF THE IAEA SAFEGUARDS SYSTEM BUREAUCRACY LIKES TO BE FLATTERED MR KAY REVEALED ITS WARTS FOR THIS HE WAS GIVEN A COMMENDATION AND QUIETLY RELIEVED OF HIS DUTIES AFTER RESIGNING FROM THE IAEA IN OCTOBER 1991 MR KAY TOOK A JOB AS SECRETARY GENERAL OF THE LONDONBASED URANIUM INSTITUTE AN ORGANIZATION OF NUCLEAR FUEL PRODUCERS AND USERS HE CONTINUED TO SPEAK OUT ON THE LESSONS OF THE IRAQ EXPERIENCE AND THE IMPORTANCE OF STRENGTHENING THE IAEA SAFEGUARDS PROCEDURES HIS PUBLIC STATEMENTS INCLUDING A MARCH 18 ARTICLE IN THE WALL STREET JOURNAL EUROPE INCENSED HIS OLD BOSS IAEA CHIEF HANS BLIX WHO TELEPHONED THE URANIUM INSTITUTE'S DIRECTOR GENERAL PIERRE GOLDSCHMIDT ON MARCH 29 AND REQUESTED THAT MR KAY BE SILENCED THE NEXT DAY MR GOLDSCHMIDT WROTE TO MR KAY IT SHOULD BE CLEAR TO YOU BY NOW THAT THERE IS NO NEED FOR YOU TO DEPEND ON YOUR PAST IAEA ACTIVITIES BY DOING SO I BELIEVE YOU ARE NOT SERVING THE BEST INTERESTS OF THE URANIUM INSTITUTE AND GIVE THE IMPRESSION THAT YOU ARE TRYING TO INCREASE YOUR VISIBILITY IN HIS RESPONSE DATED APRIL 5 MR KAY WROTE I AM SURPRISED THAT BLIX WOULD FIND MY WALL STREET JOURNAL EUROPE OPED PIECE ON THE PROSPECTS OF THE NORTH KOREANS ACQUIRING NUCLEAR WEAPONS SO OFFENSIVE THAT HE WOULD CALL YOU TO REQUEST THAT I BE MUZZLED THE WAY THAT BLIX HAS NOW CHOSEN TO INTERVENE CONFIRMED BY YOUR REACTION GIVES THE APPEARANCE OF AN ATTEMPT AT COERCION AND SUPPRESSION OF UNCOMFORTABLE IDEAS MR KAY TENDERED HIS RESIGNATION FROM THE URANIUM INSTITUTE MORE THAN JUST ONE MAN'S FALL FROM BUREAUCRATIC GRACE HOWEVER MR KAY'S EXPERIENCE ILLUSTRATES HOW THE AGENCY ON THE FRONT LINE OF THE BATTLE AGAINST NUCLEAR PROLIFERATION REMAINS UNCHASTENED BY ITS FAILURE TO DETECT IRAQ'S PROGRAM EARLIER THOUGH THE IAEA CLAIMED THAT ITS SAFEGUARDS INSPECTIONS WERE ONLY MEANT TO COVER DECLARED FACILITIES PART OF ITS ROLE AS THE DESIGNATED INSPECTION SERVICE OF THE NUCLEAR NONPROLIFERATION TREATY IS TO ENSURE THAT FISSILE MATERIALS ARE NOT BEING DIVERTED FOR MILITARY PURPOSES IF THE IAEA HAS BEEN UNFORGIVING OF ITS CRITICS IT HAS BEEN MAGNANIMOUS TO THOSE IT INSPECTS COUNTRIES ARE GIVEN PLENTY OF WARNING NORTH KOREA WHICH JOINED THE NONPROLIFERATION TREATY IN 1985 ESCAPED INSPECTIONS ALTOGETHER FOR EIGHT YEARS MOREOVER INSPECTIONS ARE CONDUCTED IN A POLITICAL VACUUM WITHOUT CONSIDERATION OF THE BROADER CONTEXT OF A COUNTRY'S NUCLEAR PROGRAM DESPITE INTELLIGENCE REPORTS THAT IRAN IS PERILOUSLY CLOSE TO BUILDING A NUCLEAR WEAPON THE IAEA CONTINUES TO GIVE THE COUNTRY A CLEAN BILL OF HEALTH THE SECRETARIAT COMPLAINS THAT NATIONAL INTELLIGENCE AGENCIES DON'T SHARE THEIR INFORMATION WITH THE IAEA NO WONDER THE IAEA DOESN'T EVEN RUN SECURITY CHECKS ON ITS OWN STAFF WORSE ITS OWN INSPECTORS ARE SIEVES ONCE IRAQ'S SECRETS WERE UNCOVERED INSPECTORS MET WITH AN IRAQI IN CHARGE OF SAFEGUARDS WHO BOASTED IN GREAT DETAIL OF HOW HE HAD FOOLED IAEA INSPECTORS THE MAN HAD LEARNED ALL THE TRICKS FROM HIS STINT AS AN IAEA INSPECTOR MR BLIX WHO REFUSED COMMENT FOR THIS ARTICLE HAS DENIED THAT SADDAM'S SUCCESS REPRESENTED A FAILURE OF THE SYSTEM THE AGENCY'S DEFENDERS ARGUE THAT THE IAEA CANNOT BE MORE THAN THE SUM OF ITS PARTS NAMELY THE WILL OF MEMBER STATES EXPRESSED THROUGH A 35MEMBER BOARD OF GOVERNORS MAYBE SO BUT THIS BEGS THE QUESTION OF HOW USEFUL THE BOARD OF GOVERNORS FORMAT IS WHY ARE SUCH COUNTRIES AS LIBYA SYRIA AND IRAN ON THE BOARD EVEN IRAQ WAS A FREQUENT BOARD MEMBER MR KAY REGARDS PART OF THE PROBLEM AS ARISING FROM THE NATURE OF THE UN BEAST ITS SECRETARIAT IS INSULATED AND SELFPROTECTIVE UNLIKE MOST NATIONAL BODIES THERE IS NO REAL ACCOUNTABILITY THE IAEA HAS RECENTLY EMBARKED ON REFORMS TO HELP IT DETECT WEAPONS PROGRAMS MOSTLY INVOLVING MORE STRINGENT REPORTING REQUIREMENTS AND HAS AFFIRMED THAT IT HAS THE RIGHT TO CONDUCT MORE INTRUSIVE INSPECTIONS IN THE ABSENCE OF REAL ORGANIZATIONAL CHANGE THAT WOULD BREAK THE TIES BETWEEN THE IAEA AND THE COUNTRIES IT IS SUPPOSED TO POLICE HOWEVER THESE REFORMS ARE UNLIKELY TO ACCOMPLISH MUCH TECHNOLOGIES AND MATERIALS NECESSARY FOR BUILDING NUCLEAR WEAPONS ARE NOW EASIER TO ACQUIRE THAN EVER BUT IN THE BATTLE AGAINST NUCLEAR PROLIFERATION AS MUCH GROUND IS BEING LOST FROM FRIENDLY FIRE MISS RAPHAEL IS DEPUTY FEATURES EDITOR OF THE WALL STREET JOURNAL EUROPE'S EDITORIAL PAGE 9307210143 930721 WHO'S NEWS CLARIDGE HOTEL & CASINO CORP CLARIDGE HOTEL & CASINO CORP ATLANTIC CITY NJ ROBERT M RENNEISEN JR 46 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING SHANNON L BYBEE 54 WHO WAS NAMED PRESIDENT OF UNITED GAMING INC BUT REMAINS A MEMBER OF CLARIDGE'S BOARD MR RENNEISEN WHO HAD BEEN CHIEF OPERATING OFFICER OF CLARIDGE WAS ALSO NAMED CEO OF THE COMPANY'S OPERATING UNIT CLARIDGE AT PARK PLACE INC AND CONTINUES AS PRESIDENT OF BOTH COMPANIES 9307210142 930721 INTERNATIONAL MAJOR'S FORTUNES GROW MORE UNCERTAIN CONSERVATIVES' FALL FROM FAVOR ADDS TO PROBLEMS BY NICHOLAS BRAY AND KEVIN HELLIKER STAFF REPORTERS OF THE WALL STREET JOURNAL CHRISTCHURCH ENGLAND FOR DECADES HILDA STONES A 74YEAROLD RETIRED CIVIL SERVANT HAS VOTED FOR BRITAIN'S CONSERVATIVE PARTY BUT WHEN A BYELECTION CALLED TO REPLACE A TORY MEMBER OF PARLIAMENT WHO DIED TAKES PLACE IN CHRISTCHURCH NEXT WEEK SHE PLANS TO VOTE FOR THE LIBERAL DEMOCRAT PARTY SO MANY PEOPLE VOTE CONSERVATIVE BECAUSE IT'S THE DONE THING FOR THE MIDDLE CLASSES SHE SAYS SITTING IN A ROCKING CHAIR IN HER FLOWERBEDECKED LIVING ROOM HENCEFORTH SHE ADDS SHE WON'T I'M DISAPPOINTED WITH THE CONSERVATIVES AND THE WAY THEY ARE HANDLING THE STATE OF THE COUNTRY FIFTEEN MONTHS AFTER A SURPRISE ELECTION VICTORY PRIME MINISTER JOHN MAJOR IS IN DEEP TROUBLE IN THE HOUSE OF COMMONS HE COULD LOSE A CRUCIAL VOTE TOMORROW ON THE MAASTRICHT TREATY ON EUROPEAN POLITICAL AND MONETARY UNION ON MONDAY THREE HIGH COURT JUDGES WILL CONSIDER A LAWSUIT AGAINST THE GOVERNMENT BROUGHT BY A MEMBER OF THE HOUSE OF LORDS LORD REESMOGG THE FORMER EDITOR OF THE TIMES NEWSPAPER CHALLENGING THE CONSTITUTIONALITY OF THE TREATY'S PLANNED RATIFICATION ON JULY 29 HE FACES THE PROSPECT OF A DAMAGING DEFEAT IN CHRISTCHURCH A SEASIDE RESORT TOWN THAT HAS BEEN STAUNCHLY CONSERVATIVE SINCE 1906 YET FOR ALL MR MAJOR'S WOES AND SAGGING POPULARITY SPECULATION ABOUT HIS OUSTER IS PROBABLY PREMATURE EVEN IF HE LOSES TOMORROW'S COMMONS VOTE AND THE BYELECTION TORY MEMBERS OF PARLIAMENT HAVE LITTLE CHOICE BUT TO STICK WITH MR MAJOR FOR NOW THERE'S NO OBVIOUS CANDIDATE TO REPLACE HIM AND THE TORIES ARE UNLIKELY TO FORCE AN EARLY ELECTION WHEN PUBLIC SUPPORT FOR THEM IS ABYSMALLY LOW INSTEAD THEY WILL TRY TO HOLD ON HOPING FOR AN IMPROVEMENT IN THEIR FORTUNES AS BRITAIN'S ECONOMIC RECOVERY STRENGTHENS LONGER TERM MR MAJOR'S POSITION IS MORE PRECARIOUS IF BRITAIN'S RECOVERY FALTERS AND PROBLEMS IN EUROPE SUGGEST THE POSSIBILITY CAN'T BE DISCOUNTED THINGS COULD DETERIORATE RAPIDLY THE TORY MAJORITY IN COMMONS HAS DROPPED FROM 21 AT LAST YEAR'S ELECTION TO 18 FOLLOWING ITS DEFEAT IN A BYELECTION IN MAY AND THE DEATH SOON AFTER OF CHRISTCHURCH'S FORMER MP ROBERT ADLEY MORE DEATHS COULD DWINDLE IT FURTHER A TORY MINISTER NATIONAL HERITAGE SECRETARY PETER BROOKE RECENTLY WARNED TORIES THAT A VOTE FOR THE LIBERAL DEMOCRATS IN CHRISTCHURCH MIGHT HASTEN A GENERAL ELECTION AND THE ARRIVAL OF A LABOR GOVERNMENT ENDING 14 YEARS OF CONSERVATIVE RULE IF SUCH A PROSPECT BEGINS TO MATERIALIZE TORY PRESSURE ON MR MAJOR TO MAKE WAY FOR A NEW LEADER COULD BECOME UNSTOPPABLE HIS POPULARITY RATINGS ARE THE LOWEST LEVELS EVER RECORDED FOR A PRIME MINISTER AND THE TORIES TRAIL LABOR AND THE LIBERAL DEMOCRATS IN OPINION POLLS I WOULDN'T BE SURPRISED IF THERE WERE A CHANGE OF PARTY LEADERSHIP IN THE AUTUMN OF 1994 SAYS ROBERT WORCESTER CHAIRMAN OF POLLING AND MARKET RESEARCH AGENCY MORI BUT IT'S FAR FROM CLEAR WHO MIGHT TAKE OVER SOME TORIES HANKER FOR A RETURN OF MARGARET THATCHER BUT SHE IS WIDELY REGARDED AS TOO CONTROVERSIAL ANOTHER NAME MENTIONED IS THAT OF KENNETH CLARKE MR MAJOR'S RECENTLY APPOINTED CHANCELLOR OF THE EXCHEQUER BUT HE HAS TO PROVE HIS ABILITY TO HANDLE BRITAIN'S DESPERATELY OVERLOADED PUBLIC FINANCES TO BE SURE MANY INSIST THAT THE ANTIMAJOR CLIMATE ISN'T ENTIRELY FAIR INTERNATIONALLY THE 50YEAROLD FORMER BANK OFFICER HAS WON PLAUDITS FOR HIS HANDLING OF THORNY DIPLOMATIC ISSUES HIS VISION OF A EUROPEAN COMMUNITY IN WHICH NATIONS COOPERATE WHILE SETTING THEIR OWN AGENDAS AT HOME IS GAINING GROUND IN EUROPE AT THE RECENT TOKYO SUMMIT OF INDUSTRIAL NATIONS HE CHAMPIONED EFFORTS TO BREAK THE DEADLOCK ON PLANS FOR A NEW AGREEMENT ON WORLD TRADE AT HOME ECONOMIC INDICATORS ARE IMPROVING THERE WAS AN UNEXPECTEDLY LARGE JUMP IN MANUFACTURING OUTPUT IN MAY UNEMPLOYMENT IS FALLING AND JUNE INFLATION FELL TO AN ANNUAL RATE OF 12 ITS LOWEST IN 30 YEARS WHILE RETAIL SALES ROSE FOR THE SIXTH CONSECUTIVE MONTH INDEED SUPPORTERS CONTEND THE PRIME MINISTER IS A VICTIM OF DIFFICULT DECISIONS HE HAS TAKEN TO RIGHT BRITAIN'S ECONOMY AFTER NEARLY THREE YEARS OF RECESSION THE VIEW HERE IS THAT YOU ACCEPT THE FACT THAT YOU'RE GOING TO BE UNPOPULAR AWHILE UNTIL THE BENEFITS FROM THESE MEASURES BEGIN TO BE REALIZED SAYS AN AIDE STILL MANY BRITONS PERCEIVE MR MAJOR AS A BUNGLER IN PART HIS LOW RATINGS REFLECT HIS INABILITY TO WHIP HARDCORE REBELS WITHIN HIS PARTY INTO LINE OVER THE MAASTRICHT TREATY A DEFEAT IN THURSDAY'S VOTE WOULD UNDERSCORE THESE PROBLEMS BECAUSE THE TORIES' MAJORITY IN PARLIAMENT IS SO MUCH SMALLER THAN UNDER BARONESS THATCHER THE REBELS' ABILITY TO MAKE TROUBLE IS MUCH GREATER THEY PLAN TO VOTE AGAINST THE GOVERNMENT IN THE DEBATE ON WHETHER BRITAIN SHOULD OPT OUT OF THE TREATY'S SOCIAL CHAPTER AS MR MAJOR WANTS OR SIGN UP FOR IT LIKE OTHER COUNTRIES AS LABOR AND THE LIBERAL DEMOCRATS PREFER THE GOVERNMENT SAYS THE SOCIAL CHAPTER'S PROVISIONS WOULD MAKE BRITAIN UNCOMPETITIVE BY IMPOSING RESTRICTIVE CONDITIONS ON EMPLOYMENT AND TORY REBELS AGREE BUT BY VOTING FOR IT THEY HOPE TO WRECK MR MAJOR'S PLANS TO RATIFY THE TREATY HOW MR MAJOR REACTS IF HE LOSES THE VOTE APPROVING THE TREATY ON TERMS HE DEEMS UNACCEPTABLE BACKING AWAY FROM IT OR FINDING A WAY AROUND THE VOTE IS FAR FROM CLEAR WHAT IS CLEAR IS THAT NEXT WEEK LIKELY WILL USHER IN YET ANOTHER SETBACK CHRISTCHURCH EXPERTS PREDICT THE TORIES WILL LOSE ONE OF THEIR TRADITIONALLY SAFEST SEATS WHICH THEY WON A YEAR AGO WITH 635 OF THE VOTE THE PRINCIPAL BENEFICIARY OF THE TORIES' DIFFICULTIES IS EXPECTED TO BE THE LIBERAL DEMOCRATS AND NOT LABOR WHOSE OWN CENTRALIZING POLICIES ARE GENERALLY UNPOPULAR AS THEY MAKE GAINS THE LIBERAL DEMOCRATS THOUGH UNLIKELY TO FORM A GOVERNMENT COULD HOLD THE BALANCE OF POWER SHOULD THE NEXT ELECTION RESULT IN A HUNG PARLIAMENT DISILLUSIONED VOTERS SAYS PATRICK SEYD A LECTURER IN POLITICS AT SHEFFIELD UNIVERSITY ARE THUMBING THEIR NOSE AT BOTH MAJOR PARTIES 9307210141 930721 WHO'S NEWS OKI ELECTRIC INDUSTRY CO OKI ELECTRIC INDUSTRY CO TOKYO JAMES D BUTTERWORTH 54 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF THE PRINTER BUSINESS OF OKIDATA A US SUBSIDIARY OF THIS COMPUTER TELECOMMUNICATIONS AND ELECTRONICS CONCERN MR BUTTERWORTH HAD BEEN VICE PRESIDENT OF CHANNEL DEVELOPMENT AT OKIDATA AND VICE PRESIDENT AND GENERAL MANAGER OF OKIDATA'S MICROSYSTEMS DIVISION 9307210140 930721 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS HAROLD COPPERMAN PRESIDENT OF THE INFORMATION SYSTEMS GROUP OF JWP INC WAS NAMED TO THE NEW POST OF VICE PRESIDENT SALES AND MARKETING FOR THE US OPERATIONS OF THIS COMPUTER MAKER'S PERSONAL COMPUTER BUSINESS UNIT 9307210139 930721 WHO'S NEWS MITEL CORP MITEL CORP KANATA ONTARIO GORDON S BYRN 48 YEARS OLD WAS NAMED CHAIRMAN OF THIS TELECOMMUNICATIONS EQUIPMENT COMPANY HE SUCCEEDS ANTHONY F GRIFFITHS WHO DIDN'T STAND FOR REELECTION TO THE BOARD MR BYRN IS A VICE CHAIRMAN OF SCHRODER VENTURES AN AFFILIATE OF THE BRITISH MERCHANT BANK SCHRODER PLC AND PRESIDENT OF SCHRODERS & PARTNERS LTD THE CANADIAN AFFILIATE OF SCHRODER VENTURES SCHRODER VENTURES IS MITEL'S LARGEST SHAREHOLDER 9307210138 930721 REVIEW & OUTLOOK EDITORIAL ASIDES CHOICE CONSENSUS POLLS SHOW THAT VOTERS OVERWHELMINGLY FAVOR SCHOOL CHOICE BUT NOW THERE'S EVIDENCE THAT GOVERNMENT OFFICIALS ARE COMING AROUND ON THE ISSUE A RECENT POLL FOR CITY & STATE THE NEWSPAPER FOR LOCAL GOVERNMENT OFFICIALS FOUND THAT 69 OF ITS READERS SUPPORTED CHOICE THAT INVOLVED BOTH PUBLIC AND PRIVATE SCHOOLS ALMOST AS MANY 62 SUPPORTED VOUCHERS JOHN OVERINGTON A WEST VIRGINIA STATE LEGISLATOR GAVE A CONCISE ARGUMENT COMPETITION LEADS TO IMPROVEMENT INNOVATION AND INCREASED PARENTAL INVOLVEMENT THE BIG REMAINING OBSTACLES TO CHOICE ARE THOSE INSTITUTIONS THAT HAVE THE MOST TO FEAR FROM PRECISELY THOSE CHANGES 9307210137 930721 NEWS CORP PLANNING VENTURE WITH TELSTRA IN ASIAPACIFIC REGION SYDNEY AUSTRALIA RUPERT MURDOCH'S NEWS CORP IS LAYING THE GROUNDWORK FOR FURTHER EXPANSION IN THE ASIANPACIFIC REGION IN ELECTRONIC MEDIA BY PURSUING A JOINT VENTURE WITH AUSTRALIA'S GOVERNMENTOWNED TELECOMMUNICATIONS COMPANY TELSTRA CORP KEN COWLEY A NEWS CORP DIRECTOR INVOLVED WITH THE VENTURE CALLED THE NEGOTIATIONS EMBRYONIC BUT SAID THE INTENTION AND OPPORTUNITY IS THERE FOR THE COMPANIES TO FORM A BUSINESS ALLIANCE IN AN INTERVIEW MR COWLEY SAID NEWS CORP AND TELSTRA ARE WORKING CLOSELY TOGETHER ON FORMING A JOINT VENTURE TO PURSUE WHATEVER MAKES SENSE AT THIS STAGE HE SAID NO OTHER POTENTIAL PARTNERS ARE INVOLVED IN THE TALKS AMONG PROJECTS THE TWO PARTNERS ARE LIKELY TO PURSUE IN THE REGION ARE PAY TELEVISION AND SOCALLED INTERACTIVE VIDEO SUCH AS HOME SHOPPING NEWS CORP'S EFFORTS TO FORM AN ALLIANCE WITH TELSTRA COME AS THE INTERNATIONAL MEDIA COMPANY IS TRYING TO GET INTO TV IN ASIA BY PURCHASING A 22 STAKE IN TELEVISION BROADCASTS LTD OF HONG KONG A LEADING PRODUCER OF CHINESE LANGUAGE PROGRAMMING HOWEVER THE TVB TRANSACTION HAS HIT SNAGS OVER FOREIGNOWNERSHIP RESTRICTIONS IN HONG KONG ALREADY NEWS CORP AND TELSTRA HAVE TEAMED UP IN TWO SEPARATE TV PROJECTS IN AUSTRALIA EARLIER THIS YEAR THE TWO COMPANIES JOINED WITH OTHER PARTNERS IN AN UNSUCCESSFUL BID FOR A LICENSE TO DELIVER PAY TV VIA SATELLITE IN AUSTRALIA WHERE IT IS YET TO BE INTRODUCED AND JUST LAST MONTH THE TWO EMERGED AS BIG SHAREHOLDERS IN SEVEN NETWORK LTD ONE OF THREE COMMERCIAL TV NETWORKS IN AUSTRALIA 9307210136 930721 AVERAGE YIELDS ON CDS WERE LITTLE CHANGED IN THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 272 FROM 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 474 FROM 475 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLID TO 307 FROM 310 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLID TO 450 FROM 451 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED DOWN TO 279 FROM 280 ON FIVEYEAR JUMBOS THE AVERAGE EASED TO 477 FROM 478 ACCORDING TO BANXQUOTE 9307210135 930721 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE RUSSIAN PARLIAMENT SUSPENDED PRESIDENT BORIS YELTSIN'S MAY DECREE TO SPEED UP THE COUNTRY'S PRIVATIZATION PROGRAM THE SUPREME SOVIET REASSERTING ITS AUTHORITY IN A POWER STRUGGLE WITH MR YELTSIN SENT THE ISSUE FOR REVIEW BY THE CONSTITUTIONAL COURT THE HIGHEST TRIBUNAL THOUGH THE ACTION DOESN'T DISCONTINUE PRIVATIZATIONS BEGUN LAST OCTOBER DEPUTY PRIME MINISTER ANATOLY CHUBAIS SAID IT WOULD DEAL A BLOW TO MILLIONS OF PEOPLE INVOLVED IN SELLOFFS OF STATE ENTERPRISES THE SUPREME SOVIET AND THE CONGRESS OF PEOPLE'S DEPUTIES ARE DOMINATED BY FORMER COMMUNIST FACTORY DIRECTORS AND OFFICIALS WHO HAVE ASSAILED MR YELTSIN'S POWERS AND MARKET REFORMS THAT WON BACKING IN AN APRIL REFERENDUM THE YELSTIN DECREE AIMED TO PREVENT FACTORY BOSSES FROM DELAYING PRIVATIZATIONS THOUSANDS OF FIRMS HAVE BEEN REORGANIZED BUT THEIR STOCK IS STILL HELD BY THE STATE AND MANAGERS THE DECREE ALLOWED THE GOVERNMENT TO FIRE OFFICIALS OBSTRUCTING SELLOFFS AND TO SELL THE SHARES AND BROADENED INDIVIDUALS' INVESTMENT CHOICES CHINA ORDERED CUTS IN GOVERNMENT SPENDING AND CURBED PURCHASES OF COSTLY ITEMS SUCH AS CARS MOBILE PHONES AND OFFICE EQUIPMENT BEIJING IS TRYING TO REDUCE INFLATION STABILIZE THE CURRENCY AND REGAIN CONTROL OF PUBLIC AND PRIVATE DEBT FIRSTHALF ADMINISTRATIVE OUTLAYS BALLOONED 27 FROM A YEAR EARLIER AND TOTAL GOVERNMENT SPENDING ROSE 13 TO 2831 BILLION WHILE REVENUE GREW JUST 35 TO 2877 BILLION INDICATING THE 13TH GOVERNMENT DEFICIT IN 14 YEARS AFTER SECONDHALF EXPENSES SUCH AS FOR CROPS MEANWHILE CHINA WILL AUDIT FINANCIAL INSTITUTIONS IN A CRACKDOWN ON SPECULATIVE DEALS BY STATE ENTERPRISES IN STOCKS AND REAL ESTATE THE SECOND PHASE OF A PRIVATIZATION PROGRAM IN THE CZECH REPUBLIC WILL BEGIN OCT 1 CZECHS MAY BUY COUPONS FOR A SYMBOLIC FEE OF 35 TO INVEST DIRECTLY OR THROUGH FUNDS IN ABOUT 800 STATE COMPANIES VALUED AT 45 BILLION THE PRIVATIZED COMPANIES WILL ALLOCATE SHARES TO COUPON HOLDERS A CORNERSTONE OF REFORMS AS THE COUNTRY MOVES TOWARD A FREEMARKET ECONOMY LAST YEAR MORE THAN EIGHT MILLION CZECHS AND SLOVAKS BECAME SHAREHOLDERS IN 9 BILLION OF ASSETS IN THE FIRST PHASE OF PRIVATIZATION BEFORE THE CZECHOSLOVAK FEDERATION WAS DISSOLVED JAN 1 TAIWAN'S CENTRAL BANK ORDERED ALL BANKS AND TRUST COMPANIES TO INCREASE LENDING FOR CAPITAL SPENDING IN THE MANUFACTURING SECTOR THE MOVE TO FORCE MORE INVESTMENT IN INDUSTRIAL LAND PLANTS AND EQUIPMENT IS A RESPONSE TO THE GOVERNMENT'S NEW STIMULUS PACKAGE WITH GROWTH GOALS OF 6 TO 7 IN THE ECONOMY AND 10 TO 15 IN PRIVATE INVESTMENT IN EACH OF THE NEXT THREE YEARS MEANWHILE TAIWAN'S INDUSTRIAL PRODUCTION INDEX IN JUNE ROSE 43 FROM A YEAR EARLIER LED BY THE CONSTRUCTION INDUSTRY BUT EDGED DOWN 08 FROM A REVISED MAY FIGURE MURDERS REPORTED IN RUSSIA SOARED 47 TO 14800 IN THE FIRST HALF BUT THE GOVERNMENT SAID POLICE WERE MAKING INROADS AGAINST ORGANIZED CRIME REPORTS OF RAPE INCREASED 16 TO 7400 FROM A YEAR AGO THE INTERIOR MINISTRY SAID POLICE HAD EXPOSED MORE THAN 1000 URBAN CRIME GROUPS STILL IT SAID ABOUT 150 CRIMINAL ORGANIZATIONS WITH 3000 SMALLER BANDS ARE OPERATING ACROSS RUSSIA CRIME HAS SURGED SINCE COMMUNIST CONTROLS COLLAPSED THE EUROPEAN COMMUNITY AGREED ON PARCELING OUT 161 BILLION RESOLVING A BATTLE FOR THE MONEY INTENDED TO BOOST ECONOMIES OF THE EC'S POOREST REGIONS THE AID FOR 199499 MORE THAN DOUBLE THAT IN THE PREVIOUS FIVEYEAR PACKAGE IS ALLOCATED TO MEMBER STATES FOR PROJECTS RANGING FROM ROAD AND RAIL CONSTRUCTION TO VOCATIONAL TRAINING FOR YOUTHS THE FUNDS ARE CONSIDERED VITAL IN REGIONS HURT THE WORST BY AN ECONOMIC SLUMP THAT HAS SENT EC UNEMPLOYMENT SOARING ABOVE 10 IRELAND PORTUGAL GREECE AND SPAIN THE FOUR POOREST EC MEMBERS WILL GET THE MOST MONEY SEVERAL NATIONS LED BY IRELAND HAD THREATENED TO BLOCK THE DEAL UNLESS THEY WERE GUARANTEED MORE CASH EVEN RICHER MEMBERS SUCH AS GERMANY AND THE NETHERLANDS COMPETED FOR A BIGGER SLICE TO HELP THEM RECOVER FROM RECESSION THE EC DIDN'T SPECIFY THE AID BY COUNTRY THE ASIAN DEVELOPMENT BANK WILL GIVE PRIORITY TO FUNDING PROGRAMS FOR POPULATION CONTROL IN DEVELOPING COUNTRIES AS POPULATION GROWTH OFTEN SWAMPS INVESTMENTS DESIGNED TO BENEFIT THEIR PEOPLE THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID THE UNEMPLOYMENT RATE FOR ITS 24 WEALTHY MEMBER NATIONS MAY RISE THIS YEAR TO 85 OR 351 MILLION PEOPLE WITHOUT JOBS AND TO 86 NEXT YEAR NEARING THE POSTWORLD WAR II HIGH OF 875 9307210134 930721 ECONOMY HOUSING STARTS WERE FLAT LAST MONTH DESPITE 20YEAR LOW IN MORTGAGE RATES BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS WERE FLAT IN JUNE DESPITE THE LOWEST MORTGAGEINTEREST RATES IN MORE THAN 20 YEARS WORK WAS BEGUN ON NEW HOUSING LAST MONTH AT AN ANNUAL RATE OF 1254000 UNITS THE COMMERCE DEPARTMENT SAID THE SAME AS IN MAY THE MAY FIGURE REPRESENTED A REVISED 4 INCREASE FROM APRIL WHICH POSTED THE FOURTH CONSECUTIVE MONTHLY RISE BUT THE JUNE REPORT WAS DISCOURAGING TO MANY HOUSINGORIENTED ECONOMISTS AND HOME BUILDERS THEY HAD EXPECTED THAT THE RECENT PLUNGE IN INTEREST RATES THE LOWEST FOR 30YEAR FIXEDRATE MORTGAGES IN 22 YEARS WOULD PRODUCE A SURGE IN DEMAND FOR NEW HOMES FROM THE UNINSPIRING LEVELS OF RECENT MONTHS DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS SAID I WAS HOPING FOR MORE KICK FROM THE SINGLEFAMILY MARKET BUT HE NOTED THAT SINGLEFAMILY STARTS ACTUALLY DECLINED IN JUNE TO AN ANNUAL RATE OF 1079000 FROM 1110000 IN MAY HEAVY RAINS AND FLOODS IN THE MIDWEST HAD SOME EFFECT IN JUNE MR SEIDERS SAID BUT THE DECLINE IN THAT AREA WAS A RELATIVELY MODEST 21 AS THE FLOODED AREAS DIDN'T INVOLVE MANY SITES FOR POTENTIAL HOMEBUILDING STARTS ALSO DECLINED IN THE SOUTH BUT ROSE IN THE NORTHEAST AND WEST THERE'S NOT A LOT OF REASON TO FEEL GOOD ABOUT THIS REPORT MR SEIDERS SAID HOUSING STARTS IN THE FIRST HALF OF THIS YEAR WERE BELOW EVEN THE SLUGGISH LEVEL OF THE 1992 SECOND HALF HE NOTED WITH RAINS SNOW AND HIGH LUMBER PRICES AFFECTING CONSTRUCTION EARLIER THIS YEAR NOW AS INTEREST RATES FALL WE'RE SUPPOSED TO BE IN THE MIDST OF A HOUSING UPSWING BUT THAT ISN'T HAPPENING SO FAR HE SAID THIS MONTH RISING FLOOD WATERS IN THE MIDWEST SEEM CERTAIN TO AFFECT HOUSING STARTS MORE THAN THEY DID IN JUNE FLOODS WILL BE THE STORY FOR JULY SAID DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION THE ASSOCIATION ANTICIPATES SOME WORSE NUMBERS THIS MONTH AND THIS WILL DAMPEN THE NATIONAL FIGURES MR LEREAH SAID THE ANALYSTS AND BUILDERS ARE MORE WORRIED HOWEVER ABOUT SLUGGISH CONSUMER ENTHUSIASM CHARLES RUMA OWNER OF DAVIDSON PHILLIPS INC A COLUMBUS OHIO HOME BUILDER SAID HIS CONSTRUCTION ACTIVITY IS RUNNING AHEAD OF LAST YEAR WITH THE MAIN IMPETUS COMING FROM LOWER INTEREST RATES BUT THERE'S STILL A LACK OF CONFIDENCE IN THE ECONOMY THAT'S PREVENTING A MORE ROBUST SURGE IN BUSINESS MR RUMA SAID ALTHOUGH MARK OBRINSKY SENIOR ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION SAID HE IS PLEASED THAT HOUSING STARTS IN JUNE WERE 10 ABOVE THOSE IN JUNE OF LAST YEAR WE REALLY NEED TO SEE A LITTLE BIT BETTER CONSUMER CONFIDENCE AND BETTER JOB AND INCOME GROWTH HE ADDED LOW RATES ARE GREAT BUT IF YOU'RE NERVOUS ABOUT YOUR JOB STATUS YOU'LL PROBABLY POSTPONE ANY HOMEBUYING DECISIONS WE DO BELIEVE THERE IS STILL A BIT OF PENTUP DEMAND BUT BUYERS ARE WARY ABOUT THE ECONOMY AND THE GOVERNMENT BUDGET PACKAGE SAID THE HOME BUILDERS' MR SEIDERS THE GROUP'S SURVEY OF 421 HOME BUILDERS EARLY THIS MONTH SHOWED AN INCREASE IN THOSE EXPECTING A SALES PICKUP IN THE ENSUING SIX MONTHS TO 41 FROM 35 IN A SIMILAR EARLYJUNE POLL AND HOME BUILDERS REPORT INCREASED TRAFFIC OF POTENTIAL BUYERS LOOKING AT NEWHOME MODELS THIS HASN'T BEEN REFLECTED IN A NEW SURGE OF HOME BUYING OR CONSTRUCTION PLANS HOWEVER BUILDING PERMITS WERE ISSUED IN JUNE AT AN ANNUAL RATE OF 1106000 UNITS DOWN 13 FROM MAY PERMITS ROSE FOR SINGLEFAMILY HOMES BUT DECLINED FOR MULTIFAMILY STRUCTURES EVEN AS NEW STARTS INCREASED FOR MULTIFAMILY UNITS AS A RESULT THE HOME BUILDERS ASSOCIATION HAS TRIMMED ITS FORECAST FOR TOTAL STARTS THIS YEAR TO 1260000 FROM A PREVIOUS PREDICTION OF 1290000 THE MORTGAGE BANKERS ASSOCIATION SIMILARLY PLANS TO CUT ITS ESTIMATE FOR THE YEAR BELOW 1300000 STARTS FROM ITS EARLIER FORECAST OF 1320000 THE GROUP'S MR LEREAH SAID OTHER LONGERRANGE FACTORS MAY BE INVOLVED IN THE DISAPPOINTING THOUGH IMPROVED HOMECONSTRUCTION PACE THE HOME BUILDERS' MR SEIDERS SAID THAT ALTHOUGH THE CREDIT CRUNCH HAS DISAPPEARED FOR BUILDERS IN MOST PARTS OF THE COUNTRY MANY STILL FIND ACCESS TO CONSTRUCTION LOANS SQUEEZED IN THE NORTHEAST ALSO WITH PERSISTENT LOW INFLATION THERE ISN'T ANY RUSH TO BUY A HOME BEFORE PRICES CLIMB SUCH AS THE PRESSURE THAT HELPED PROPEL HOME BUILDING IN PAST YEARS HE SAID MEANWHILE THE FIVEYEAR EXCESS SUPPLY OF HOMES THAT LASTED THROUGH 1992 IS STARTING TO GIVE WAY TO A VERY SMALL PENTUP DEMAND SAID ROBERT WESCOTT OF WEFA GROUP A BALA CYNWYD PA FORECASTING FIRM THE FIRM CALCULATES THE DESIRED STOCK OF HOUSING BY COMPARING THE HOUSING INVENTORY WITH DEMAND AS SHOWN DEMOGRAPHICALLY BY THE NUMBER OF PERSONS IN THE AGE GROUP THAT TYPICALLY STARTS BUYING HOMES WE SHOULD BE POISED FOR SOME PRETTY GOOD HOME BUILDING ACTIVITY FOR THE REST OF THE YEAR THAT WILL GIVE A STRONG BOOST TO THE ECONOMY MR WESCOTT SAID AS HOUSING IS THE LEADING INTERESTSENSITIVE INDUSTRY DRIVING MANY OTHER CONSUMERSPENDING DECISIONS WE REALLY NEED HOUSING TO STAND UP AND BE RECOGNIZED HE SAID FIGURES IN THE COMMERCE DEPARTMENT REPORT ARE ADJUSTED FOR SEASONAL VARIATIONS 9307210133 930721 WHO'S NEWS DIED THOMAS R WILCOX 76 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CROCKER NATIONAL CORP WHICH WAS LATER ACQUIRED BY WELLS FARGO & CO MONDAY IN DERING HARBOR NY OF CANCER 9307210132 930721 NET AT COAST SAVINGS GREAT WESTERN FELL 24 IN 2ND QUARTER A WALL STREET JOURNAL NEWS ROUNDUP TWO CALIFORNIA THRIFTS SAID SECONDQUARTER PROFITS FELL 24 DESPITE IMPROVED CREDIT QUALITY AND STRONG LOAN GROWTH GREAT WESTERN FINANCIAL CORP CHATSWORTH CALIF SAID NET INCOME FELL 24 TO 526 MILLION OR 35 CENTS A SHARE FROM 69 MILLION OR 51 CENTS A SHARE A YEAR EARLIER AT LOS ANGELESBASED COAST SAVINGS FINANCIAL INC PROFIT ALSO FELL 24 TO 51 MILLION OR 27 CENTS A SHARE FULLY DILUTED FROM 67 MILLION OR 41 CENTS A SHARE BOTH COMPANIES PERFORMED IN LINE WITH WALL STREET'S EXPECTATIONS PRIMARY PERSHARE FIGURES FOR COAST WEREN'T AVAILABLE GREAT WESTERN WHICH ANALYSTS SAY HAS BEEN POORLY MANAGED IN RECENT YEARS FINALLY CAUGHT UP WITH MOST OTHER CALIFORNIA FINANCIAL INSTITUTIONS BY POSTING A DECLINE IN TROUBLED ASSETS BAD ASSETS TOTAL 195 BILLION OR 501 OF ASSETS DOWN FROM 2 BILLION IN THE FIRST QUARTER BECAUSE OF ASSET SALES AND FEWER NEW DELINQUENCIES REFLECTING THE TREND OF HOMEOWNERS TO REFINANCE THEIR MORTGAGES THE COMPANY WROTE 3 BILLION IN NEW LOANS UP FROM 24 BILLION A YEAR EARLIER THE DIFFERENCE BETWEEN ITS BORROWING COSTS AND LENDING RATES NARROWED TO 381 FROM 388 A YEAR EARLIER COAST SAVINGS REPORTED ITS NINTH CONSECUTIVE DECLINE IN BAD ASSETS TO 2535 MILLION DOWN 18 FROM 3081 MILLION AT THE END OF THE FIRST QUARTER BUT EARNINGS SUFFERED FROM A SHARP INCREASE IN ITS PROVISION FOR LOAN LOSSES AND OTHER CREDIT RISKS TO 24 MILLION FROM 7 MILLION IN THE FIRST HALF GREAT WESTERN EARNED 978 MILLION OR 65 CENTS A SHARE DOWN 35 FROM 1506 MILLION OR 111 A SHARE IN 1992 COAST'S NET INCOME FELL 55 TO 93 MILLION OR 52 CENTS A SHARE FULLY DILUTED FROM 205 MILLION OR 125 A SHARE GREAT WESTERN STOCK CLOSED UNCHANGED AT 17125 WHILE COAST SAVINGS SHARES FELL 25 CENTS OR 18 TO CLOSE AT 1350 BOTH IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9307210131 930721 BUSINESS BRIEFS KELSEYHAYES GROUP A UNIT OF VARITY CORP PLANS TO INVEST 66 MILLION IN ITS WOODSTOCK ONTARIO FACILITY TO MANUFACTURE DISKBRAKE ROTORS FOR CERTAIN FORD MOTOR CO VEHICLES NCR CORP A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO WON A DEFENSE DEPARTMENT CONTRACT VALUED AT AS MUCH AS 159 MILLION OVER EIGHT YEARS TO SUPPLY DATABASE MACHINES AND PROFESSIONAL SERVICES WILMINGTON TRUST CO WILMINGTON DEL REACHED AN AGREEMENT TO ACQUIRE SUNSHINE BULLION CO'S RETAIL PRECIOUSMETAL SALES AND SERVICE BUSINESS TERMS WEREN'T DISCLOSED RAYTHEON CO LEXINGTON MASS WAS AWARDED A 625 MILLION CONTRACT TO UPGRADE PATRIOT MISSILE SYSTEM RADARS FOR THE US ARMY MISSILE COMMAND AMERICAN INTERNATIONAL GROUP INC INTRODUCED HEALTHCARE FACILITIES LIABILITY INSURANCE WHICH COVERS CLAIMS AGAINST OUTPATIENT HEALTHCARE FACILITIES AND THEIR PROFESSIONAL EMPLOYEES WESTERN UNION FINANCIAL SERVICES INTERNATIONAL A UNIT OF NEW VALLEY CORP BEGAN A MONEY TRANSFER SERVICE BETWEEN THE US AND MALTA 9307210130 930721 FINANCING BUSINESS UDC HOMES INC UDC HOMES INC TEMPE ARIZ SAID IT WILL PROPOSE A SWAP OF COMMON STOCK FOR ITS PRIME PREFERRED EXCHANGEABLE STOCK THE PROPOSED OFFER WOULD GIVE THE PREFERRED HOLDERS THE RIGHT TO EXCHANGE EACH OF THEIR SHARES FOR 175 UDC COMMON SHARES GIVING THE OFFER A VALUE CLOSE TO 12 A SHARE WHICH IS THE PREFERRED'S CASH REDEMPTION PRICE UDC A HOMEBUILDING COMPANY WOULD ACCEPT OFFERS FOR AS MUCH AS 50 OF THE NEARLY 88 MILLION SHARES OUTSTANDING OF PRIME PREFERRED ADDING AS MANY AS 77 MILLION COMMON SHARES TO THE 88 MILLION COMMON SHARES ALREADY OUTSTANDING 9307210129 930721 SCOTT AND UNION CAMP POST SHARP DECLINES IN 2NDQUARTER PROFIT NEW YORK SCOTT PAPER CO AND UNION CAMP CORP BOTH REPORTED SHARPLY LOWER SECONDQUARTER EARNINGS DUE TO CONTINUED WEAKNESS IN PAPER PRICES PHILADELPHIABASED SCOTT PAPER SAID QUARTERLY EARNINGS PLUNGED 50 TO 235 MILLION OR 32 CENTS A SHARE FROM 466 MILLION OR 63 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE FELL 5 TO 121 BILLION FROM 128 BILLION A YEAR AGO WITH WORLDWIDE VOLUMES ESSENTIALLY FLAT AND PRICES GENERALLY WEAK OUR PRODUCTIVITY IMPROVEMENTS HAVE NOT BEEN SUFFICIENT TO OFFSET THESE FACTORS AND COST INFLATION SAID PHILIP LIPPENCOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER UNION CAMP OF WAYNE NJ SAID QUARTERLY EARNINGS DROPPED 34 TO 151 MILLION OR 22 CENTS A SHARE FROM 227 MILLION OR 32 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE EDGED UP 1 TO 7865 MILLION FROM 7788 MILLION A YEAR AGO CHAIRMAN AND CHIEF EXECUTIVE OFFICER GENE CARTLEDGE ATTRIBUTED THE EARNINGS DECLINE TO LOWER AVERAGE PRICES FOR THE COMPANY'S PRINCIPAL PRODUCTS LINERBOARD AND UNCOATED BUSINESS PAPERS 9307210128 930721 TECHNOLOGY INTERMAGNETICS STOCK SPURTS 63 ON NEWS OF COOLANT PRODUCT GUILDERLAND NY INTERMAGNETICS GENERAL CORP'S STOCK PRICE SOARED 63 ON NEWS THAT IT MAY HAVE ACHIEVED A BREAKTHROUGH IN COOLANTS FOR AUTOMOBILE AIRCONDITIONING SYSTEMS THE COMPANY SAID ITS NEW COOLANT CALLED FRIGC IS BEING STUDIED BY CHRYSLER CORP AUBURN HILLS MICH FOR POSSIBLE COMMERCIAL USE IF THE PRODUCT CLEARS REGULATORY HURDLES A CHRYSLER SPOKESMAN CONFIRMED THE COMPANY IS STUDYING INTERMAGNETICS' COOLANT THIS IS THE FIRST PROPOSAL WE'VE SEEN THAT MERITS TESTING A SPOKESMAN FOR THE AUTO COMPANY SAID BUT IT DOESN'T MEAN THAT THEY'VE GOT IT IT MEANS THAT WE'RE INTERESTED IN WHAT THEY OFFER THE ANNOUNCEMENT SENT THE COMPANY'S STOCK SHARPLY HIGHER IN TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY IT GAINED 6 TO CLOSE AT 1550 A SHARE ON VOLUME OF 836000 SHARES AVERAGE DAILY VOLUME NORMALLY IS ABOUT 28000 SHARES IF IT WORKS THERE COULD BE SIGNIFICANT DEMAND FOR THE PRODUCT WHICH INTERMAGNETICS GENERAL SAID COULD BE INJECTED INTO EXISTING COOLING SYSTEMS AS A REPLACEMENT FOR CHLOROFLUOROCARBONBASED COOLANTS WHICH ARE BEING PHASED OUT UNDER AN INTERNATIONAL ENVIRONMENTAL AGREEMENT DEMAND FOR FRIGC APPARENTLY WOULD BE FOR OLDER CARS BECAUSE DIFFERENT CHEMICALS ARE BEING ADOPTED FOR NEW CARS BY DEC 31 1995 AUTO MAKERS WILL NO LONGER BE ALLOWED TO MAKE AUTOMOBILE AIR CONDITIONERS THAT USE CFC12 THE COMMONLY USED CHLOROFLUOROCARBON SEVERAL AUTOMAKERS SUCH AS FORD MOTOR CO DEARBORN MICH WILL HAVE PHASED OUT THE CHLOROFLUOROCARBONBASED COOLANTS BY THE END OF THIS YEAR STILL ANALYSTS ESTIMATE THAT AS MANY AS 100 MILLION CARS STILL WOULD BE OPERATING WITH CFC12 SYSTEMS BY 1995 THE NEWS SURPRISED SOME OF THE LARGEST CHEMICAL COOLANT MAKERS INCLUDING DUPONT CO WILMINGTON DEL AND ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ BOTH COMPANIES HAVE ATTEMPTED TO FIND SUCH A DROPIN REPLACEMENT FOR CFC12 BUT WITHOUT SUCCESS 9307210127 930721 INTERNATIONAL SALOMON UNIT WON'T TAKE LEAD ROLE IN BARITO OFFER JAKARTA INDONESIA SALOMON BROTHERS INC THE US INVESTMENT BANK DECLINED TO ACT AS THE LEAD MANAGER FOR FOREIGN SALES IN PT BARITO PACIFIC TIMBER'S PLANNED MULTIMILLIONDOLLAR PUBLIC SHARE OFFERING AS BARITO MANAGERS BEGAN AN INTERNATIONAL ROADSHOW TO PITCH THE OFFERING TO MAJOR INVESTORS THE SALOMON INC UNIT INFORMED OTHER FIRMS PLANNING TO DISTRIBUTE THE SHARES THAT IT WOULDN'T ACCEPT THE LEAD ROLE A SALOMON EXECUTIVE IN HONG KONG REFUSED TO COMMENT BUT BANKING SOURCES SAID THE BANK HAD CONCLUDED THAT IT COULDN'T OBTAIN SUFFICIENT INFORMATION TO COMPLETE ITS DUE DILIGENCE STUDY OF THE OFFERING AND TO SATISFY REGULATORY REQUIREMENTS FOR SHARES SOLD IN THE US THE BANK'S DECISION THREATENS TO DAMP FOREIGN INVESTORS' DEMAND FOR THE SHARES ANALYSTS SAID THERE WAS NO FORMAL AGREEMENT BETWEEN SALOMON AND PT MAKINDO THE INDONESIAN SECURITIES FIRM ORGANIZING AND UNDERWRITING THE BARITO ISSUE BUT SALOMON HAD LONG BEEN WORKING WITH MAKINDO AND FUND MANAGERS EXPECTED IT TO BE ASSIGNED AS INTERNATIONAL COORDINATOR FOR WHAT WILL BE ONE OF INDONESIA'S BIGGEST PUBLIC OFFERINGS BARITO PACIFIC A LARGE FORESTPRODUCTS CONCERN IS LED BY PRAJOGO PANGESTU WHO PLANS TO OFFER AT LEAST 200 MILLION OF SHARES IN BARITO PACIFIC TIMBER 9307210126 930721 INVESTORS ARE TOLD THE NEW FIRM IS HOPING TO GET ON THE FAST TRACK BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE DAYTONA 500 ZIPS AROUND NEXT YEAR ONE ENTRANT MAY HAVE TO MATCH THE EXPECTATIONS OF A NEW BREED OF MOTORRACING FANS STOCKHOLDERS AMERICAN MOTOR RACING INC BASED IN CHARLOTTE NC HOPES TO RAISE AT LEAST 2 MILLION IN A PUBLIC OFFERING AND USE THAT MONEY TO CREATE THE FIRST PUBLICLY OWNED TEAM TO RACE ON THE STOCKCAR CIRCUIT IT GIVES FANS THE HIGHEST LEVEL OF PARTICIPATIONYOU CAN'T BE IN THE DRIVER'S SEAT BUT YOU CAN BE IN THE OWNER'S BOX SAYS ROBERT C GUNST THE COMPANY'S CHIEF FINANCIAL OFFICER THE IDEA IS THE BRAINCHILD OF BRUCE H GARDNER HIMSELF A RACECAR DRIVER IN THE EARLY 1960S FOR MOST OF THE PAST THREE DECADES MR GARDNER HAS WORKED FOR JC PENNEY CO HE'S NOW A STORE MANAGER IN CHARLOTTE BUT THE LOYALTY TO HIS FIRST LOVE HAS NEVER WANED YOU GET RACING IN YOUR BLOOD AND IT NEVER COMES OUT HE SAYS OVER THE YEARS HOWEVER HE HAS WATCHED THE PRICE OF OWNING A TEAM SOAR STARTUP COSTS SUCH AS FOR LEASING A BUILDING AND SHOP EQUIPMENT RUN ABOUT 3 MILLION TO 4 MILLION AND RACING A TEAM COSTS AN ADDITIONAL 2 MILLION TO 4 MILLION ANNUALLY ACCORDING TO THE NATIONAL ASSOCIATION OF STOCK CAR AUTO RACING MR GARDNER KNEW HE COULDN'T AFFORD TO BUY A TEAM ON HIS OWN SO HE THOUGHT WHAT WOULD IT BE LIKE FOR A FAN TO OWN PART OF A TEAM TWO YEARS AGO HE TURNED OVER HIS IDEA TO MR GUNST A TAX LAWYER AND TRAVIS A CARTER A FORMER CREW CHIEF AND A 22YEAR MOTORRACING VETERAN IN THE FIRST THREE WEEKS SINCE THE OFFERING WAS ANNOUNCED ABOUT 1300 PEOPLE HAVE CALLED ASKING FOR A PROSPECTUS CLASS A RESTRICTEDVOTING SHARES ARE BEING SOLD IN GEORGIA FLORIDA AND NORTH CAROLINA FOR 750 EACH WITH A MINIMUM PURCHASE OF 50 SHARES EVEN IF THE DESIRED 2 MILLION IS RAISED THE COMPANY WOULD STILL NEED COMMERCIAL SPONSORSHIPS THE BACKBONE OF MOST RACING TEAMS SO FAR NO CONTRACTS HAVE BEEN SIGNED BUT RACING FANS ARE WELL KNOWN FOR THEIR LOYALTY TO SPONSORS OF THE SPORT AND AMERICAN MOTOR HOPES THAT SUCH LOYALTY WILL HELP HOOK A COMMERCIAL PARTNER INVESTING IN ANY NEW VENTURE OF COURSE HAS ITS RISKS AND AUTO RACING HAS MORE THAN ITS SHARE THEN TOO WHEN IT COMES TO THE QUESTION OF CONTROL INVESTORS CAN FORGET ANY FANTASIES THEY MIGHT HAVE ABOUT BACKSEAT DRIVING THE PROMOTERS WILL RETAIN CONTROL THROUGH OWNERSHIP OF THE CLASS B FULLVOTING SHARES 9307210125 930721 YOUR MONEY MATTERS REDHOT UTILITY FUNDS ARE STILL SOUND BET IN SLUGGISH ECONOMY BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL WILL THE TORTOISE CONTINUE TO BEAT THE HARE IN THE RACE FOR STOCK MARKET PROFITS SO FAR THIS YEAR ONCESTODGY UTILITY MUTUAL FUNDS HAVE SOUNDLY TROUNCED THEIR MORE GLAMOROUS RIVALS FUELED BY FALLING INTEREST RATES A RISE IN NATURAL GAS UTILITY STOCK PRICES AND A GLOBAL TELECOMMUNICATIONS BOOM THE AVERAGE UTILITY FUND WAS UP NEARLY 11 FOR THE FIRST HALF WHILE THE TYPICAL GROWTHSTOCK FUND EKED OUT A GAIN OF ONLY 3 NOW MANY INVESTMENT PROS FEEL THAT THE EASY MONEY HAS BEEN MADE THIS PERIOD OF TORRID PERFORMANCE IN UTILITIES IS UNLIKELY TO PERSIST SAYS WARREN SPITZ MANAGER OF THE PRUDENTIAL UTILITY FUNDS A AND B HIS FUNDS THE NATION'S LARGEST WITH 46 BILLION IN COMBINED ASSETS RACKED UP A TOTAL RETURN OR PRICE CHANGES PLUS DIVIDENDS OF ABOUT 23 IN THE 12 MONTHS THROUGH JUNE 30 BUT WHILE THE PROS DON'T EXPECT THE SAME EXPLOSIVE RETURNS OF THE PAST YEAR TO CONTINUE THEY THINK UTILITIES REMAIN A SOUND INVESTMENT THEY ARE OUTSTANDING VEHICLES FOR INCOME AND CONSERVATIVE LONGTERM APPRECIATION IN THIS SLOW GROWTH ECONOMY ADDS ROBERT J BRINKER EDITOR OF BOB BRINKER'S MARKETIMER A PRINCETON NJ NEWSLETTER CHARLES CAIN PRESIDENT OF CAIN ASSET MANAGEMENT CORP NEW YORK SAYS HE CONTINUES TO LIKE UTILITY FUNDS BECAUSE THEY WORK WELL IN THE SLUGGISH LOWINFLATION ECONOMY HE FORESEES THE PROS SAY THE BIGGEST RISK IN INVESTING IN UTILITY FUNDS NOW IS THAT INTEREST RATES MAY RISE IN THE COMING MONTHS DRIVING THE PRICES OF UTILITY STOCKS DOWN UTILITYSTOCK PRICES CLOSELY FOLLOW THE LONGTERM BOND MARKET IF THE ECONOMY SURGES AND LONGTERM INTEREST RATES GO UP UTILITYSTOCK PRICES ARE LIKELY TO GO DOWN FORTUNATELY FOR UTILITY INVESTORS MANY PROS DON'T SEE INTEREST RATES AND INFLATION RISING SIGNIFICANTLY IN THE NEAR TERM INVESTORS HAVE POURED A TOTAL OF 24 BILLION INTO THESE FUNDS MORE THAN DOUBLE THEIR STAKE A YEAR AGO AND THERE ARE 47 UTILITY FUNDS TODAY COMPARED WITH ONLY 31 LAST YEAR A LOT OF THE MONEY HAS COME FROM INDIVIDUAL INVESTORS WHO MOVED INTO UTILITY FUNDS FROM CERTIFICATES OF DEPOSIT AND MONEYMARKET INVESTMENTS BECAUSE THE FUNDS PAY DIVIDENDS THAT ARE NEARLY TWO TIMES THE YIELD ON CDS FOR EXAMPLE FRANKLIN UTILITIES FUND THE NATION'S OLDEST FUND WITH 35 BILLION INVESTED PAYS A CURRENT YIELD OF 51 COMPARED WITH 27 ON A NEW THREEMONTH CERTIFICATE OF DEPOSIT BUT INVESTORS TAKE MORE RISK WHEN THEY BUY A UTILITY FUND EVEN THOUGH THE UTILITIES CAN RAISE DIVIDENDS IF INFLATION SPIKES UP UTILITY FUNDS ARE STILL MOSTLY MADE UP OF STOCKS WITH ONLY A SPRINKLING OF UTILITY BONDS TYPICALLY UTILITY STOCKS HAVE FALLEN ABOUT TWOTHIRDS AS MUCH AS OTHER COMMON STOCKS DURING MARKET DOWNTURNS IT'S IMPORTANT TO REMEMBER THAT UTILITY FUNDS VARY WIDELY IN THE TYPE OF UTILITIES THEY HOLD SOME SUCH AS FRANKLIN WHICH CHARGES A 4 LOAD INVEST ALMOST ENTIRELY IN ELECTRIC UTILITIES THEY PAY THE HIGHEST DIVIDENDS THESE FUNDS ARE ALSO THE MOST VULNERABLE TO INTEREST RATE INCREASES SAYS ANTHONY MAYORKAS UTILITIES ANALYST FOR MORNINGSTAR MUTUAL FUNDS A CHICAGO COMPANY THAT TRACKS MUTUAL FUNDS OTHER UTILITY FUNDS FOLLOW STRATEGIES THAT ALMOST MAKE THEM GROWTH FUNDS BESIDES ELECTRIC UTILITIES THEY INVEST IN NATURAL GAS UTILITIES AND TELEPHONE AND TELECOMMUNICATIONS COMPANIES IN THE US AND OVERSEAS THEY ALSO TRY TO MAKE MONEY BY INVESTING IN DISTRESSED UTILITIES JUST BEFORE THEY TURN AROUND TO PROFITABILITY THAT'S A WHOLE NEW GAME FOR A UTILITY INVESTOR PRUDENTIAL UTILITY FUNDS A AND B FOR EXAMPLE HAVE A CURRENT YIELD OF SLIGHTLY MORE THAN 2 THE FUNDS HAVE THE SAME PORTFOLIO WITH 30 INVESTED IN NATURAL GAS DISTRIBUTION AND TRANSMISSION COMPANIES AND ABOUT 20 IN TELEPHONE AND TELECOMMUNICATIONS UTILITIES WE'RE DEFINITELY A TOTAL RETURN FUND INSTEAD OF A YIELD FUND SAYS MANAGER MR SPITZ THERE'S SOME MERIT TO THIS APPROACH IF YOU PICK THE RIGHT FUND OVER THE PAST 10 YEARS WHAT IS NOW PRUDENTIAL'S UTILITY FUND B PLACED SECOND IN THE LIPPER ANALYTICAL SERVICES RANKING OF ALL STOCK FUNDS IT HAD A CUMULATIVE TOTAL RETURN OF 450 BEATING SUCH WELLKNOWN GROWTH FUNDS AS FIDELITY MAGELLAN WHICH HAD A CUMULATIVE TOTAL RETURN OF 382 ACCORDING TO LIPPER BUT YOU HAVE TO PAY A SALES COMMISSION TO GET THESE FUNDS PRUDENTIAL UTILITY FUND A CHARGES A MAXIMUM INITIAL 525 LOAD PRUDENTIAL UTILITY FUND B CHARGES A DEFERRED SALES CHARGE FOR INVESTORS REDEEMING SHARES FROM 5 THE FIRST YEAR TO NOTHING AFTER SIX YEARS IF INVESTORS CAN STAND MORE VOLATILITY SOME ADVISERS RECOMMEND INVESTING IN THE TOTAL RETURN UTILITY FUNDS THAT HAVE LARGE HOLDINGS OF FOREIGN TELEPHONE AND TELECOMMUNICATIONS COMPANIES THESE FOREIGN TELEPHONE COMPANIES IN DEVELOPING COUNTRIES ARE PRIVATIZING GOVERNMENT UTILITIES AND BUILDING TELEPHONE LINES WHERE THERE WERE NONE BEFORE BARRY STRUDWICK PRINCIPAL IN EAGER STREET ASSET MANAGEMENT BALTIMORE LIKES INVESCO FORMERLY FINANCIAL STRATEGIC UTILITIES A NOLOAD FUND THAT HOLDS LARGE STAKES IN TELEPHONE UTILITIES IN MEXICO AND CHILE UTILITIES INVESTORS SHOULDN'T JUST INVEST IN YIELD SAYS MR STRUDWICK A LOT OF THE INTEREST RATE PLAY IS OUT OF UTILITIES BECAUSE RATES CAN'T GO DOWN MUCH FURTHER HE SAYS IT'S A GOOD TIME TO FOCUS ON FUNDS THAT HOLD TELECOMMUNICATIONS STOCKS WITH INTERNATIONAL GROWTH POTENTIAL HE SAYS BUT INVESTORS WHO BUY THESE FUNDS SHOULD BE AWARE THEY ARE TAKING ON NEW RISKS THERE ARE POSSIBLE CURRENCY MOVES POLITICAL INSTABILITY AND ACCOUNTING STANDARDS IN FOREIGN COUNTRIES THAT OFTEN DON'T MEASURE UP TO US RULES SAYS GERALDINE WEISS EDITOR OF INVESTMENT QUALITY TRENDS A LA JOLLA CALIF NEWSLETTER MANY INVESTORS STILL LIKE THE PLAIN VANILLA US UTILITY FUNDS WITH CONSISTENT DIVIDENDS SAYS BRIAN KELLY MANAGER OF INVESCO UTILITIES FUND THERE ARE A LOT OF PEOPLE WHO FAVOR THE TORTOISE IN THE RACE AGAINST THE HARE 9307210124 930721 IRATE IOWANS REPORTING UNAUTHORIZED WATER USE DES MOINES IOWA WHISTLEBLOWERS ARE TURNING IN WATER CHEATERS AND THE CITY IS TURNING OFF THEIR UNAUTHORIZED SUPPLY AFTER GOING MORE THAN A WEEK WITHOUT WATER SOME BUSINESSES AND RESIDENTS IN THIS CITY OF 250000 IGNORED WARNINGS NOT TO USE WATER AS THE DES MOINES WATER WORKS BEGAN REFILLING THE 800 MILES OF EMPTY PIPES ALMOST IMMEDIATELY IRATE CITIZENS BEGAN CALLING CITY OFFICIALS AND NEWS MEDIA TO INFORM ON THOSE USING WATER BEFORE THEY'RE SUPPOSED TO MORE THAN 200 SUCH CALLS HAD POURED IN BY YESTERDAY NOON LD MCMULLEN DIRECTOR OF THE WATER WORKS DISPATCHED CREWS TO CHECK OUT COMPLAINTS AND IF VERIFIED TO DISCONNECT THE CHEATERS WHILE A NUMBER OF BUSINESSES WERE BELIEVED AMONG THE CULPRITS MR MCMULLEN DECLINED TO IDENTIFY THEM IMMEDIATELY UNAUTHORIZED USERS DELAYED THE SCHEDULED REPLENISHMENT OF THE CITY'S WATER SYSTEM AT LEAST A DAY INFURIATING THOSE WHO HAVE DONE WITHOUT WATER FOR BATHING OR TOILET USES SINCE THE FLOODING RACCOON RIVER OVERRAN THE WATERWORKS A WEEK AGO SUNDAY PURIFIED WATER SUITABLE FOR DRINKING STILL ISN'T EXPECTED FOR SEVERAL WEEKS 9307210123 930721 MARKETING & MEDIA ECC ISSUES 3 US STUDIOS ANTITRUST WARNING FOR UNIT BRUSSELS THE EUROPEAN COMMUNITY COMMISSION WARNED THREE LARGE US MOVIE STUDIOS THAT AN INTERNATIONAL DISTRIBUTION UNIT THEY ESTABLISHED MAY VIOLATE EC COMPETITION RULES BY RESTRICTING FILM DISTRIBUTION AND SALES THE COMMISSION SAID A JOINT VENTURE BETWEEN METROGOLDWYNMAYER INC MCA INC AND PARAMOUNT COMMUNICATIONS INC CALLED UNITED INTERNATIONAL PICTURES RISKED FALLING FOUL OF EC ANTITRUST REGULATIONS THE JOINT VENTURE WAS GIVEN TWO MONTHS TO REPLY THE CREATION OF UIP HAMPERED COMPETITION AND WAS NOT IN THE PUBLIC INTEREST A COMMISSION STATEMENT SAID THE ISSUE OF MARKET SHARE FOR AUDIOVISUAL PRODUCTS LIKE MOVIES AND TELEVISION PROGRAMS HAS BEEN A POINT OF CONTENTION BETWEEN THE EC AND THE US SINCE 1989 WHEN THE COMMUNITY ADOPTED GUIDELINES INTENDED TO LIMIT USMADE ENTERTAINMENT TO 50 OF THE TOTAL SHOWN IN THE EC EXECUTIVES AT THE US MOVIE COMPANIES DECLINED TO COMMENT SAYING THEY WEREN'T YET FAMILIAR WITH THE WARNING A WARNING ISSUED BY THE EUROPEAN COMMUNITY COMMISSION THAT UNITED INTERNATIONAL PICTURES MAY BE VIOLATING EC COMPETITION RULES REPORTED IN YESTERDAY'S EDITION APPLIES ONLY TO UIP'S PAY TELEVISION ARRANGEMENTS UIP IS AN INTERNATIONAL DISTRIBUTION UNIT FOR THREE LARGE US MOVIE STUDIOS SEPARATELY UIP SAID IT IS CONFIDENT THAT WE WILL BE ABLE TO SATISFY THE EC COMMISSION ON THESE ISSUES AND DEMONSTRATE THAT UIP PROVIDES A FIRST CLASS SERVICE OF CONSIDERABLE BENEFIT TO PAY TELEVISION CHANNELS AND ULTIMATELY PAY TELEVISION CONSUMERS CONSISTENT WITH COMMUNITY COMPETITION LAW 9307210122 930721 CALIFORNIA'S TAX FIASCO A LESSON FOR CONGRESS BY MARGARET A BENGS BEFORE CONGRESS FINALLY DECIDES WHETHER TO IMPOSE ADDITIONAL TAX INCREASES ON THE AMERICAN PEOPLE AS PART OF PRESIDENT CLINTON'S DEFICIT REDUCTION PLAN IT COULD LEARN A LESSON FROM A SIMILAR ATTEMPT CALIFORNIA MADE TWO YEARS AGO THE CALIFORNIA LEGISLATURE PASSED THE LARGEST STATE TAX INCREASE IN US HISTORY IN JULY 1991 PARTS OF WHICH WERE RETROACTIVE TO JANUARY JUST AS PRESIDENT CLINTON WANTS TO INCREASE THE TOP FEDERAL INCOMETAX RATE CALIFORNIA INCREASED ITS TOP PERSONAL INCOMETAX RATE TO 11 FROM 93 IT INCREASED THE SALES TAX EXTENDED IT TO ADDITIONAL ITEMS IMPOSED HUGE TAX INCREASES ON ALCOHOLIC BEVERAGES RAISED VEHICLE LICENSE FEES AND SUSPENDED CERTAIN TAX CREDITS AND DEDUCTIONS THIS TAX HIKE ENACTED TO HELP SOLVE A 14 BILLION GAP BETWEEN ANTICIPATED REVENUES AND EXPENDITURES THAT YEAR WAS SUPPOSED TO BRING IN 7 BILLION IN ADDITIONAL REVENUES NARROW THE DEFICIT AND SAVE OURSELVES GOV PETE WILSON SAID AT THE TIME FROM A WORLD OF PAIN LATER ON YET ONLY SIX MONTHS LATER THE GOVERNOR'S BUDGET DOCUMENTS REPORTED SUBSTANTIAL LOSSES OF EMPLOYMENT STAGNANT PERSONAL INCOME GROWTH EXTREMELY WEAK RETAIL SALES REFLECTING LOW LEVELS OF CONSUMER CONFIDENCE AND THE MOST SEVERE ECONOMIC RECESSION SINCE THE GREAT DEPRESSION OF THE 1930S WITH PERSONAL INCOME AND SALES TAX COLLECTIONS FAR SMALLER THAN ANTICIPATED OVERALL REVENUES IN FISCAL 199192 FELL 4 BILLION BELOW ESTIMATES AND THIS WAS AFTER THE HUGE 7 BILLION TAX INCREASE THE FOLLOWING YEAR CALIFORNIA PERSONAL INCOME TAX REVENUES FELL FOR THE FIRST TIME IN MORE THAN 50 YEARS SALES TAX REVENUE DROPPED NEARLY 2 BILLION FROM THE PRIOR YEAR'S ESTIMATE WHY WHILE THE STATE'S POLITICAL LEADERS BLAME THE RECESSION FEDERAL DEFENSE CUTBACKS GLOBAL RESTRUCTURING AND DEMOGRAPHIC CHANGES WHICH DO CONTRIBUTE THEY FAIL TO OWN UP TO THEIR OWN ROLE IN CREATING CALIFORNIA'S FISCAL FIASCO AND AN ECONOMY THAT CONTINUES TO STAGGER BEHIND THE NATION'S IMPOSING THIS MASSIVE TAX INCREASE ON AN ALREADY WEAKENED ECONOMY DEALT A DEATH BLOW TO ITS EFFORTS TO RECOVER ACCORDING TO A NEW STUDY BY ECONOMISTS AB LAFFER VA CANTO & ASSOCIATES THE TAX INCREASE'S EFFECTS ON THE STATE'S ECONOMY MORE THAN OFFSET ANY REVENUEENHANCING EFFECT THE HIGHER TAX RATES THEMSELVES MIGHT HAVE HAD AFTER PROPOSITION 13 CALIFORNIA'S LANDMARK PROPERTY TAX CUT ENACTED BY VOTERS IN 1978 CALIFORNIA'S OVERALL TAX BURDEN PER 1000 OF PERSONAL INCOME FELL FROM AMONG THE HIGHEST IN THE NATION TO ABOUT AVERAGE TODAY WHEN MEASURED PER WORKING TAXPAYER CALIFORNIA HAS THE FIFTH HIGHEST TAX AND FEE BURDEN OF ANY STATE ACCORDING TO A NEW STUDY BY THE CALIFORNIA TAXPAYERS ASSOCIATION CALTAX SURPASSING EVEN SUCH HIGHTAX STATES AS MASSACHUSETTS AND CONNECTICUT THE BURDEN AMOUNTS TO 5931 PER WORKER 14 ABOVE THE 50STATE AVERAGE CALIFORNIA RANKS AMONG THE HIGHEST STATES IN TAX RATES ON PERSONAL INCOME SALES AND CORPORATIONS WHAT IS MORE STATE AND LOCAL FEES AND ASSESSMENTS HAVE CLIMBED TO 21 OF THE TOTAL TAX AND FEE BURDEN PER WORKER IN CALIFORNIA THE HIGHEST IN THE NATION ACCORDING TO CALTAX THIS FACT SUGGESTS THAT PROPOSITION 13 DID NOT RESTRAIN GOVERNMENT GROWTH BECAUSE REDUCED TAX REVENUES HAVE BEEN OFFSET BY AGGRESSIVE INCREASES IN FEES AND ASSESSMENTS WHILE PROPOSITION 13 HAD USHERED IN A STRONG ECONOMY GENERATING PERSONAL INCOME GROWTH WELL ABOVE THE NATIONAL AVERAGE AND AN UNEMPLOYMENT RATE BELOW THE NATION'S TODAY UNEMPLOYMENT HAS CLIMBED TO 91 SUBSTANTIALLY HIGHER THAN THE US RATE OF 7 AND PERSONAL INCOME GROWTH IS THE WORST IN DECADES NOT ONLY DID THE 1991 TAX GRAB FAIL TO SOLVE THAT YEAR'S DEFICIT BUT SUBSEQUENT DEFICIT PROJECTIONS HAVE BALLOONED ANOTHER 10 BILLION GAP APPEARED IN 1992 TO ADDRESS THIS YEAR'S ADDITIONAL 9 BILLION SHORTFALL LEGISLATORS JUST EXTENDED THE TEMPORARY PORTION OF THE 1991 SALES TAX INCREASE WHICH WAS SCHEDULED TO EXPIRE LAST MONTH AND ARE SUSPENDING THE RENTERS' TAX CREDIT THEY VOTED TO TRANSFER 27 BILLION OF LOCAL PROPERTY TAX REVENUES TO SCHOOLS TO BAIL THE STATE OUT OF ITS EDUCATION FUNDING OBLIGATIONS THE PROBLEM AS USUAL IS SPENDING UNLESS EXPENDITURES ARE BROUGHT UNDER CONTROL STILL ANOTHER MASSIVE SHORTFALL LOOMS FOR THE UPCOMING YEAR STATE AND LOCAL SPENDING IN CALIFORNIA GREW FROM 43 BILLION IN 1980 TO 117 BILLION IN 1989 A REAL INCREASE OF 79 WELFARE PAYMENTS ARE AMONG THE HIGHEST IN THE NATION AND THE CASELOAD CONTINUES TO GROW AT ALARMING SPEED YOU CAN'T TAX YOUR WAY OUT OF THIS PROBLEM CALTAX HAS WARNED PRESIDENT CLINTON AND CONGRESS SHOULD LOOK AT THE RESULTS OF THE GREAT CALIFORNIA TAX FIASCO OF 1991 AND RETHINK THEIR SOLUTION TO WASHINGTON'S FISCAL PROBLEMS MS BENGS A FORMER SPEECHWRITER FOR CALIFORNIA GOV GEORGE DEUKMEJIAN WAS ASSISTANT REGIONAL DIRECTOR BOSTON FOR HHS IN THE REAGAN ADMINISTRATION 9307210121 930721 MARKETING & MEDIA PEPSICO PROFIT INCREASED 13 IN 2ND QUARTER BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID SECONDQUARTER NET ROSE 13 EVEN AS POTATOCROP DAMAGE A NEW PIZZA LAUNCH AND OVERSEAS RESTAURANT RIVALS TOOK A BITE OUT OF FOOD PROFITS LARGELY ON STRONGERTHANEXPECTED RESULTS FROM ITS BEVERAGE AND OVERSEAS SNACKFOOD DIVISIONS PEPSI POSTED EARNINGS OF 4268 MILLION OR 53 CENTS A SHARE COMPARED WITH 3788 MILLION OR 47 CENTS A SHARE A YEAR EARLIER THE FIGURES WERE IN LINE WITH ANALYSTS' ESTIMATES SALES INCREASED 15 TO 589 BILLION FROM 513 BILLION THE OPERATING PROFIT FOR THE BEVERAGE BUSINESS ROSE 18 AS PURCHASE NYBASED PEPSI BENEFITED FROM LOWER SWEETENER AND PACKAGING COSTS THE COMPANY WAS ALSO AIDED BY THE TREND OF SOFTDRINK BOTTLERS OR DISTRIBUTORS SCALING BACK ON PRICE DISCOUNTING THAT PRACTICE PRODUCES QUICK MARKETSHARE GAINS BUT SQUEEZES PROFIT MARGINS OVER THE LONG TERM HELPED BY A STEPPEDUP MARKETING PUSH OF ITS LIPTON ICED TEA AND OCEAN SPRAY JUICES PEPSI'S BEVERAGE SALES ON A VOLUME BASIS ROSE 3 IN THE QUARTER THAT'S BELOW RIVAL COCACOLA CO'S 6 VOLUME INCREASE IN THE SECOND QUARTER WHICH WAS FUELED PARTLY BY STRONG SALES TO FOUNTAIN ACCOUNTS WHICH COKE DOMINATES BUT THE COKE AND PEPSI FIGURES AREN'T QUITE COMPARABLE BECAUSE PEPSI'S SECOND QUARTER WHICH ENDED JUNE 12 INCLUDES CASE SALES ONLY FOR APRIL AND MAY AS A RESULT PEPSI'S SECOND QUARTER WASN'T AFFECTED BY LAST MONTH'S PRODUCTTAMPERING HOAX IN WHICH DOZENS OF PEOPLE CLAIMED TO FIND VARIOUS FOREIGN OBJECTS IN THEIR PEPSI SOFTDRINK CANS BUT PEPSI DISCLOSED THAT THE EPISODE DID HURT SALES BRIEFLY FOR TWO WEEKS SALES SHOWED LITTLE GROWTH OVER THE YEAREARLIER PERIOD A SPOKESMAN SAID BUT QUICKLY RETURNED TO THE NORMAL 3 TO 5 GROWTH RATE PEPSI'S INTERNATIONAL CASE SALES VOLUME ROSE 6 IN THE SECOND QUARTER REFLECTING STRONG RESULTS IN EASTERN EUROPE AND THE MIDDLE EAST PARTLY OFFSET BY DECLINES IN THE PHILIPPINES AND CANADA IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PEPSICO COMMON WAS QUOTED AT 36375 UP 875 CENTS WORLDWIDE SALES WORLDWIDE SNACKFOOD OPERATING PROFITS JUMPED 18 SPURRED IN PART BY IMPROVING SALES IN THE UNITED KINGDOM AND MEXICO INTERNATIONAL SNACKFOOD VOLUME ROSE 6 A MARCH STORM PRODUCED A POTATO SHORTAGE THAT ADDED ABOUT 18 MILLION TO 20 MILLION TO THE COSTS OF FRITOLAY PEPSICO'S DOMESTIC SNACK MAKER FRITOLAY'S VOLUME AS MEASURED IN POUNDS OF SNACK CHIPS ROSE MORE THAN 5 OFF 1 TO 2 FROM WHAT SOME ANALYSTS HAD FORECAST STILL AT THE SNACK DIVISION OVERALL SAID JOSEPH DOYLE AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO THE PROFIT PICTURE IS VERY ENCOURAGING THE RESTAURANT GROUP'S OPERATING PROFIT SLID 5 DESPITE TACO BELL'S RINGING UP A SOLID 7 GAIN IN SAMESTORE SALES DOMESTICALLY PIZZA HUT AND KFC FORMERLY CALLED KENTUCKY FRIED CHICKEN FARED WORSE WITH A 4 SAMESTORE SALES GAIN AND A 7 DECLINE RESPECTIVELY PIZZA HUT RAN UP AN ESTIMATED 10 MILLION BILL TO INTRODUCE ITS BIGFOOT PIZZA PEPSICO SAID THE BIGFOOT HAS DRIVEN BIG INCREASES IN CARRYOUT AND DELIVERY TRAFFIC KFC'S SLUMP CONTINUED WITH A MENU OUT OF STEP WITH CHANGING TASTES THE COMPANY HOPES TO TURN THE SITUATION AROUND WITH ITS RECENTLY ANNOUNCED INTRODUCTION OF A ROTISSERIE CHICKEN DESIGNED TO EXPAND ITS AUDIENCE BEYOND FRIEDCHICKEN FANS BOTH KFC AND PIZZA HUT HAD ANOTHER DIFFICULT QUARTER IN AUSTRALIA ONE OF THE BIGGEST OVERSEAS MARKETS FOR BOTH CHAINS AS THE COUNTRY'S WEAK ECONOMY SPURRED COMPETITORS TO DISCOUNT MENU ITEMS FOR THE FIRST HALF PEPSICO'S NET WAS 6872 MILLION OR 85 CENTS A SHARE COMPARED WITH A LOSS OF 3136 MILLION OR 39 CENTS A SHARE AFTER CHARGES OF 9274 MILLION RELATED TO POSTRETIREMENT BENEFITS AND INCOME TAXES SALES ROSE 14 TO 1098 BILLION FROM 962 BILLION 9307210120 930721 UAL UNIONS OFFER GIVEBACKS FOR OWNERSHIP THEY PROPOSE CONCESSIONS TOTALING 36 BILLION IN RETURN FOR 60 STAKE BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP'S THREE MAJOR UNIONS ARE PROPOSING A PLAN UNDER WHICH THE AIRLINE'S EMPLOYEES WOULD GRANT SOME 36 BILLION IN CONCESSIONS OVER FIVE YEARS IN RETURN FOR 60 OWNERSHIP IN THE PARENT OF UNITED AIRLINES SUCH CONCESSIONS AT THE NATION'S SECONDLARGEST CARRIER WOULD AMOUNT TO ONE OF THE LARGEST GIVEBACKS YET IN THE STRUGGLING AIRLINE INDUSTRY IN COMPARISON NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC WHICH IS SMALLER THAN UNITED IS SEEKING RANKANDFILE APPROVAL OF CONCESSIONS TOTALING 886 MILLION OVER THREE YEARS IN RETURN FOR UP TO 375 OF THE COMPANY INDIVIDUALS CLOSE TO THE SITUATION SAID UNIONS REPRESENTING UNITED'S PILOTS MACHINISTS AND FLIGHT ATTENDANTS HAVE PRESENTED AT LEAST PARTS OF THE PLAN TO UAL'S MANAGEMENT AND ARE AWAITING A RESPONSE THE SITUATION IS DELICATE PARTLY BECAUSE UAL HASN'T EVEN SAID WHETHER IT WILL NEGOTIATE ON THE UNION COALITION'S CALL FOR MAJORITY EMPLOYEE OWNERSHIP IN ADDITION THE FINAL AMOUNT OF ANY CONCESSIONS AND OWNERSHIP WOULD DEPEND ON THE VALUE PLACED ON UAL SHARES THE SHARES HAVE RISEN NEARLY 10 SINCE LAST WEEK WHEN RUMORS SURFACED IN ADVANCE OF THE UNIONS' ANNOUNCEMENT THAT THEY SEEK A SUBSTANTIAL EQUITY STAKE IN RETURN FOR CONCESSIONS YESTERDAY UAL SHARES JUMPED 475 TO 138 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AS AIRLINE ISSUES RALLIED UNITED'S UNIONS DON'T VIEW THE PROPOSED CONCESSIONS AS GIVEBACKS RATHER THEY SEE THEM AS INVESTMENTS NECESSARY TO MAKE THE AIRLINE MORE COMPETITIVE AND TO EXERT MORE CONTROL OVER DECISIONS AFFECTING THEIR OWN FUTURE SPOKESMEN FOR BOTH THE UNION COALITION AND UAL DECLINED TO COMMENT THE UNIONS HAVEN'T YET DECIDED HOW THE MAJORITY OWNERSHIP WOULD BE ACCOMPLISHED BUT IT WOULD ALMOST CERTAINLY MEAN THE ESTABLISHMENT OF AN EMPLOYEE STOCK OWNERSHIP PLAN OR ESOP ONE METHOD WOULD BE FOR THE SHARES TO BE PURCHASED IN A TENDER OFFER FROM EXISTING SHAREHOLDERS HOW SUCH A PURCHASE WOULD BE FINANCED HASN'T BEEN DECIDED AND LIKELY WOULD ANOTHER TOPIC OF ANY NEGOTIATIONS AT YESTERDAY'S CLOSING PRICE 60 OF UAL'S 24 MILLION SHARES WOULD COST NEARLY 2 BILLION BUT ANALYSTS SAY THE COMPANY IS WORTH MORE THAN ITS CURRENT MARKET VALUE AND A PREMIUM WOULD LIKELY BE PAID IN ANY BUYBACK NOR IS IT CLEAR HOW UAL CHAIRMAN STEPHEN WOLF AND THE COMPANY'S BOARD WILL REACT TO THE UNIONS' PROPOSAL OR THEIR INSISTENCE ON MAJORITY OWNERSHIP IN PAST LABOR PROPOSALS TO BUY THE AIRLINE MANAGEMENT AND THE UNIONS SOMETIMES COOPERATED AND SOMETIMES CLASHED THIS TIME HOWEVER THE UNIONS WANT TO LEAVE A SIGNIFICANT CHUNK OF SHARES IN PUBLIC HANDS AS IN THE PAST THE UNIONS CONTEMPLATE UNITED'S NONCONTRACT EMPLOYEES TAKING PART IN BOTH THE CONCESSIONS AND THE OWNERSHIP OF THE AIRLINE THE THREE UNIONS REPRESENT ABOUT 53000 OF UNITED'S 81000 EMPLOYEES 9307210118 930721 CRAZY EDDIE FOUNDER IS CONVICTED OF CHARGES TIED TO INFLATED STOCK NEWARK NJ EDDIE ANTAR FOUNDER OF THE NOWDEFUNCT CRAZY EDDIE INC CONSUMER ELECTRONICS CHAIN WAS CONVICTED OF STOCK FRAUD AND RACKETEERING FOR INFLATING THE COMPANY'S MARKET VALUE THROUGH PHONY SALES AND INVENTORY REPORTS AFTER DELIBERATING FOR SIX DAYS A JURY IN US DISTRICT COURT IN NEWARK FOUND MR ANTAR GUILTY OF ALL 17 COUNTS OF STOCK FRAUD MAIL FRAUD RACKETEERING CONSPIRACY AND RELATED CHARGES THAT HE FACED MITCHELL ANTAR HIS BROTHER WAS CONVICTED OF SIX RELATED CHARGES WHILE ALLEN ANOTHER BROTHER WAS ACQUITTED OF SIX CHARGES US DISTRICT JUDGE NICHOLAS H POLITAN SCHEDULED AN AUG 4 FORFEITURE HEARING FOR EDDIE AND MITCHELL ANTAR THE COMPANY COLLAPSED IN 1987 AFTER MR ANTAR SOLD HIS STAKE THE SECURITIES AND EXCHANGE COMMISSION WON A 75 MILLION CIVIL JUDGMENT AGAINST MR ANTAR FOR PROFITS FRAUDULENTLY REALIZED BY SELLING SHARES AT INFLATED PRICES IN JANUARY EDDIE ANTAR 45 WAS EXTRADITED FROM ISRAEL AND HELD BY AUTHORITIES TO FACE TRIAL HE HAD GONE INTO HIDING ABROAD IN 1988 A US COURT FOUND HIM IN CONTEMPT FOR FAILING TO RETURN 52 MILLION HELD IN OVERSEAS BANK ACCOUNTS UNDER SENTENCING GUIDELINES MR ANTAR COULD FACE UP TO 11 YEARS IN PRISON NEITHER PROSECUTORS OR DEFENSE LAWYERS WOULD COMMENT ON THE VERDICT CITING A COURTIMPOSED GAG ORDER THAT REMAINED IN EFFECT 9307210117 930721 TUESDAY'S MARKETS STOCK PRICES MIXED BONDS AND DOLLAR FALL BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED WHILE BOND PRICES DECLINED MODESTLY AFTER SOME JARRING REMARKS BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE GAINED 950 POINTS TO 354478 STANDARD & POOR'S 500STOCK INDEX ROSE 128 TO 44731 AND THE NASDAQ COMPOSITE INDEX JUMPED 607 TO 70190 STOCK AND BOND PRICES TUMBLED AFTER MR GREENSPAN TOLD THE HOUSE BANKING COMMITTEE THAT ALTHOUGH INFLATION MODERATED IN MAY AND JUNE OVERALL INFLATION NEWS HAS BEEN DISAPPOINTING BECAUSE OF INCREASES EARLIER IN THE YEAR BOND TRADERS DROVE THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE DOWN MORE THAN HALF A POINT AND THE INDUSTRIAL AVERAGE FOLLOWED WITH LOSSES OF AS MUCH AS 23 POINTS BUT BOND PRICES STABILIZED AFTER TRADERS RECOGNIZED THAT MR GREENSPAN ALSO HAD INDICATED A COMMITMENT TO FIGHT INFLATION AS THE BOND MARKET RECOVERED STOCKMARKET INVESTORS WERE ENCOURAGED TO BID UP PRICES TOO STOCK PRICES WERE HELPED BY STRENGTH AMONG SOME RETAILERS AND BY REBOUNDING TECHNOLOGY STOCKS SEARS REPORTED BETTERTHANEXPECTED SECONDQUARTER EARNINGS DRIVING ITS STOCK UP 4 1/8 TO 50 1/8 SEARS ACCOUNTED FOR NEARLY ALL THE INDUSTRIAL AVERAGE'S GAIN FALLING OIL PRICES GAVE AIRLINE STOCKS A LIFT BOOSTING THE DOW JONES TRANSPORTATION AVERAGE 2137 TO 156894 LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS SAID THE STOCK MARKET WASN'T AS STRONG AS THE POPULAR INDEXES INDICATED HE POINTED OUT THAT MANY MORE STOCKS FELL THAN ROSE IN PRICE THE BREADTH IS NOT VERY GOOD HE SAID THE OVERALL MARKET IS NOT PARTICIPATING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 003 TO 10653 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2751 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1064 ISSUES FELL AND 877 ROSE BOND PRICES DECLINED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/8 POINT OR MORE THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 655 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16690 MARKS AND 10815 YEN COMPARED WITH 17070 MARKS AND 10848 YEN MONDAY THE DOLLAR STOOD AT 16996 MARKS LATE TUESDAY AFTERNOON IN NEW YORK THE RATE WAS MISSTATED AS 16690 MARKS IN YESTERDAY'S EDITION 9307210116 930721 SPORTS LET THE TALKS BEGIN TV NETWORKS VOW TO EXERCISE RESTRAINT ON OLYMPICS FEES BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A 16DAY EXTRAVAGANZA MADE FOR TV WITH ENOUGH DRAMA TENSION AND HEROICS TO CAPTIVATE A NATIONAL AUDIENCE BUT IS IT WORTH 500 MILLION THAT QUESTION WILL PROBABLY BE ANSWERED NEXT WEEK WHEN THE THREE MAJOR TELEVISION NETWORKS MEET IN NEW YORK WITH OLYMPIC OFFICIALS TO BID FOR THE US RIGHTS TO BROADCAST THE 1996 SUMMER GAMES IN ATLANTA THE NETWORKS HAVING BEEN BURNED ON SOME PREVIOUS MAJOR SPORTS CONTRACTS SEEM DETERMINED TO LIMIT THE ANTE THIS TIME AROUND IN CONTRAST THE INTERNATIONAL OLYMPIC COMMITTEE'S NEGOTIATORS AND ADVISERS INSIST THAT THE BARGAINING WILL YIELD A MINIMUM OF 450 MILLION TO THAT THE NETWORKS SAY IN SO MANY WORDS IOC OFFICIALS MAY BE SPENDING TOO MUCH TIME IN THE SUMMER SUN THERE'S NO QUESTION THE ATLANTA GAMES ARE AN ATTRACTIVE EVENT SAYS NEAL PILSON PRESIDENT OF CBS INC'S CBS SPORTS BUT HE ADDS THE GENERAL TREND IN RIGHTS FEES IS FLAT OR DOWN THE MARKETPLACE HASN'T BEEN ABLE TO SUPPORT THEM HISTORY WOULD SEEM TO FAVOR THE IOC AND ATLANTA EVERY FOUR YEARS OR SO THE NETWORKS GROUSE THAT OLYMPIC OFFICIALS ARE DEMANDING FAR TOO MUCH FOR BROADCAST RIGHTS AND VOW NEVER AGAIN TO EMPTY THEIR WALLETS AND EVERY FOUR YEARS ONE NETWORK TAKES A DEEP BREATH AND DOES JUST THAT IN LATE 1988 NBC CRITICIZED CBS FOR PAYING A STEEP 243 MILLION FOR THE 1992 WINTER GAMES AND THEN FORKED OVER 401 MILLION FOR LAST YEAR'S SUMMER OLYMPICS IN BARCELONA SPAIN THIS TIME HOWEVER THE NETWORKS MIGHT HOLD THE LINE EACH OF THE THREE IN RECENT YEARS HAS TAKEN A BEATING ON SPORTS PROGRAMMING A FALLOFF IN RATINGS AND AD RATES RESULTED IN AN ESTIMATED 500 MILLION LOSS FOR CBS ON ITS FOURYEAR CONTRACT WITH MAJOR LEAGUE BASEBALL ADVERTISERS MEANWHILE REMAIN SKITTISH ADVANCE SALES FOR NEXT SEASON'S PRIMETIME SCHEDULE SEEM LIKELY TO BE OFF ABOUT 5 FROM A YEAR EARLIER WHICH WOULD BE A THIRD STRAIGHT ANNUAL DECLINE AND THE ECONOMY SHOWS FEW SIGNS OF BREAKING INTO A GALLOP ALL OF WHICH HAS LEFT THE NETWORKS MORE CONCERNED WITH THEIR BOTTOM LINES TEN OR 15 YEARS AGO WE'D TAKE A RISK WITH THE GAMES AND FIGURE WE COULD GENERATE THE REVENUE SAYS JIM SPENCE FORMER SENIOR VICE PRESIDENT OF ABC SPORTS AND NOW PRESIDENT OF SPORTS TELEVISION INTERNATIONAL A PRODUCTION AND CONSULTING FIRM IN NEW YORK WELL THE DAYS OF MAJOR RISKS ARE OVER THE NETWORKS ADDS ALAN GOTTESMAN A BROADCASTING ANALYST AT PAINEWEBBER ARE WORRIED ABOUT GETTING THROUGH 1993 NEVER MIND 1996 BY MOST ACCOUNTS ABC A UNIT OF CAPITAL CITIES/ABC INC APPEARS TO BE THE FRONTRUNNER IN THE BIDDING FOR ATLANTA FOLLOWED CLOSELY BY NBC A UNIT OF GENERAL ELECTRIC CO SPORTS EXECUTIVES AT BOTH NETWORKS DECLINED TO BE INTERVIEWED FOR THIS STORY AT CBS MR PILSON SAYS I DON'T MIND BEING AN UNDERDOG ABC WHICH COVERED 10 OF THE 12 GAMES PRIOR TO SEOUL SOUTH KOREA IN 1988 HASN'T BROADCAST A SUMMER COMPETITION SINCE LOS ANGELES IN 1984 APPARENTLY EAGER TO REJOIN THE PARTY THE NETWORK ACCORDING TO ADAGENCY EXECUTIVES HAS BEEN THE MOST ACTIVE OF THE THREE IN GAUGING MADISON AVENUE'S INTEREST IN ATLANTA ABC MAY ALSO HAVE AN EDGE WHEN IT COMES TO CABLE TELEVISION EAGER TO REACH MORE VIEWERS AND TO GENERATE MORE AD DOLLARS THE IOC HAS MADE NO SECRET OF ITS DESIRE TO SEE A GOOD CHUNK OF THE ATLANTA GAMES BROADCAST ON CABLE TELEVISION CAPITAL CITIES IS MAJORITY OWNER OF ESPN A CABLETV SPORTS CHANNEL AND ABC HAS HAD EXTENSIVE TALKS WITH TURNER BROADCASTING SYSTEM INC ABOUT PLANS TO SHOW THE GAMES ON A TOTAL OF FOUR CHANNELS ABC ESPN AND TWO CABLETV NETWORKS OWNED BY TURNER TNT AND TBS INDEED ATLANTABASED TURNER MAY BE THE BESTSITUATED OF ANY PLAYER IN THE NEGOTIATIONS WITH ITS FACILITIES AND PERSONNEL ALREADY IN PLACE TO COMPLEMENT A NETWORK PRODUCTION IT HAS TELEVISED AN OLYMPICS IN ALBERTVILLE FRANCE IN 1992 IN PARTNERSHIP WITH CBS AND WILL DO SO AGAIN IN 1994 IN LILLEHAMMER NORWAY CBS IS PAYING 300 MILLION FOR THE RIGHTS TO THE 1994 WINTER GAMES BUT TURNER WHICH HAS DISCUSSED COVERAGE WITH ALL THREE NETWORKS IS ALSO LEERY OF THE COSTS INVOLVED THE ESTIMATED 24 MILLION THAT THE COMPANY SPENT ON RIGHTS FEES AND PRODUCTION IN ALBERTVILLE CONTRIBUTED TO AN 80 DROP IN TURNER'S FIRSTQUARTER EARNINGS LAST YEAR WE WOULD CERTAINLY LIKE TO BE INVOLVED SAYS KEVIN O'MALLEY SENIOR VICE PRESIDENT PROGRAMMING AT TURNER SPORTS BUT WE DON'T WANT TO ASSUME A LARGE FINANCIAL RISK TO REDUCE RISKS IN THEIR OWN BUSINESS THE NETWORKS HAVE EMBRACED THE IDEA OF REVENUE SHARING IN MAY ABC NBC AND MAJOR LEAGUE BASEBALL AGREED TO A SIXYEAR TV CONTRACT WITH VIRTUALLY NO UPFRONT PAYMENT FOR BROADCAST RIGHTS INSTEAD THE THREE PARTIES WILL SET UP A VENTURE TO SELL AD TIME AND THEN DIVIDE THE REVENUE AMONG THEMSELVES NBC IN ITS NEW CONTRACT WITH THE NATIONAL BASKETBALL ASSOCIATION HAS A COMBINATION OF RIGHTS PAYMENTS AND REVENUE SHARING SOME OF THE NETWORKS ACCORDING TO INDUSTRY EXECUTIVES WOULD LIKE TO SEE A SIMILAR ARRANGEMENT FOR THE ATLANTA OLYMPICS IT WOULD OFFER THEM SOME DOWNSIDE PROTECTION SAYS MR SPENCE OF SPORTS TELEVISION BUT REVENUE SHARING ACCORDING TO RICHARD POUND VICE PRESIDENT OF THE IOC IS ABOUT AS LIKELY AS SNOW FALLING IN ATLANTA DURING THE GAMES THE IOC ITSELF MIGHT BE WILLING TO CONSIDER THE IDEA HE SAYS BUT ATLANTA HAS VERY SPECIFIC FINANCIAL OBLIGATIONS NAMELY 500 MILLION FOR CONSTRUCTION OF FACILITIES THEY NEED SOME DEGREE OF CERTAINTY ABOUT THEIR BUDGET A MORE LIKELY CHANGE WOULD BE TO OPEN THE GAMES ON A FRIDAY EVENING AS OPPOSED TO SATURDAY AFTERNOON AS IS TRADITIONAL UNDER THAT SCENARIO A NETWORK COULD SELL ADS FOR FRIDAY NIGHT AND FOR ALL OF SATURDAY WHICH WOULD BECOME A FULL DAY OF COMPETITION ALL IN ALL A NICE INCREMENTAL REVENUE STREAM FOR THE OLYMPICS SAYS MARC GOLDSTEIN EXECUTIVE VICE PRESIDENT AND DIRECTOR OF NATIONAL BROADCAST MEDIA AND PROGRAMMING AT LINTAS USA OLYMPIC OFFICIALS HAVE INDICATED A WILLINGNESS TO EXPAND THE GAMES TO 17 DAYS AS WELL AS TO WORK WITH INTERNATIONAL SPORTS FEDERATIONS TO STRETCH SOME EVENTS WITH HIGH RATINGS SUCH AS GYMNASTICS SWIMMING AND DIVING INTO THE SECOND WEEK OF COMPETITION IN BARCELONA THE AVERAGE PRIMETIME RATING WAS 192 IN WEEK NO 1 AND 158 IN WEEK NO 2 ACCORDING TO NIELSEN MEDIA RESEARCH ATLANTA WILL ALSO POUR 100 MILLION OR SO INTO A HOST BROADCAST FACILITY WHICH A NETWORK CAN USE TO COMPLEMENT ITS OWN TELECASTS AND HAS HIRED MANOLO ROMERO AN INTERNATIONALLY RESPECTED PRODUCER WHO HAS BEEN INVOLVED WITH TV COVERAGE OF EVERY OLYMPICS SINCE 1968 TO RUN IT IT'S THE TOP OF THE LINE SAYS DON MCGUIRE SENIOR VICE PRESIDENT AND EXECUTIVE PRODUCER OF TURNER SPORTS IT ALSO MEANS HE SAYS THAT LESS NETWORK MONEY HAS TO BE SPENT ON PRODUCTION AND MORE CAN GO TO RIGHTS FEES ATLANTA'S OLYMPIC ORGANIZERS WHO GET 60 OF THE RIGHTS FEE REMAIN CONFIDENT ABOUT NEXT WEEK'S NEGOTIATIONS AFTER ALL ASSERTS BILLY PAYNE THE ATLANTA COMMITTEE'S CHIEF EXECUTIVE WE'RE BRINGING TO THE TABLE THE MOST VALUABLE SPORTS PROPERTY IN HISTORY ON A SLIGHTLY MORE SUBDUED NOTE THE IOC'S MR POUND CHIEF NEGOTIATOR FOR THE OLYMPIC SIDE OF THE HOUSE SAYS I'M GUARDEDLY OPTIMISTIC WALL STREET HOWEVER LIKES THE NETWORKS' CHANCES NO ONE WANTS TO LOSE 100 MILLION ON THIS SAYS DAVID J LONDONER A BROADCASTING ANALYST AT WERTHEIM SCHRODER & CO THE ONLY WAY YOU AVOID THAT IS TO BID LOW 9307210115 930721 LETTERS TO THE EDITOR TAX RISE WILL DEEPEN INNER CITIES' DESPAIR IN HIS JUNE 24 EDITORIAL PAGE COMMENTARY CITIES THE TAX BILL'S VICTIMS CHARLES KADLEC SHOWS THE TREMENDOUS COST THAT INCREASING TAXES WILL HAVE ON CITIES IN TERMS OF DIMINISHING POPULATION INCREASED UNEMPLOYMENT AND DECLINING REAL ESTATE VALUES EVEN MORE IMPORTANT THAN LOST POPULATION AND LOWER REAL ESTATE VALUES HOWEVER IS THE LOSS OF PROSPERITY SELFRELIANCE AND DIGNITY OF THE PEOPLE WHO LIVE IN THE INNER CITIES THE HARMFUL CONSEQUENCES OF THE PENDING TAX BILL ARE EVEN DIRER WHEN WE CONSIDER THE DESPAIR THE DESPERATION AND HOPELESSNESS THAT EXIST IN OUR INNER CITIES WE AT THE US COMMISSION ON CIVIL RIGHTS SAW THE EXTENT OF THAT DESPAIR AT OUR RECENT HEARINGS IN LOS ANGELES WITNESS AFTER WITNESS STRUGGLING MANUFACTURERS RETAIL OWNERS BANKERS ENTREPRENEURS AND COMMUNITY SERVICE WORKERS SAID THAT MORE REGULATION AND MORE TAXATION COULD ONLY HURT THEIR BUSINESS OR SERVICE OUR URBAN COMMUNITIES ARE OUR HIGHESTCOST HIGHESTTAXED NEIGHBORHOODS WE TALK ABOUT CITIES AND THESE NEIGHBORHOODS AS IF THEY WERE THINGS BUT THEY ARE COMMUNITIES OF PEOPLE WE MUST STOP TREATING THEM AS IF THEY ARE NOT PART OF US RATHER THAN ZONES OF IMPOVERISHMENT WE NEED TO OFFER ZONES OF ENTERPRISE AND OPPORTUNITY 9307210114 930721 TECHNOLOGY LOTUS SEES EARNINGS MEETING ESTIMATES CAMBRIDGE MASS LOTUS DEVELOPMENT CORP PRESIDENT JIM P MANZI SAID HE IS COMFORTABLE WE'LL BE TOWARD THE HIGHER END OF ANALYSTS' EXPECTATIONS FOR THE SECOND QUARTER ANALYSTS EXPECT LOTUS'S EARNINGS FOR THE QUARTER TO BE 30 CENTS TO 35 CENTS A SHARE BEFORE A CHARGE FOR THE ACQUISITION OF APPROACH SOFTWARE CORP THAT WILL RESULT IN A NET LOSS FOR THE PERIOD MR MANZI'S COMMENTS INDICATE EARNINGS BEFORE THE CHARGE WILL BE CLOSE TO LAST YEAR'S NET INCOME OF 149 MILLION OR 34 CENTS A SHARE THE CHARGE WHICH ISN'T DEDUCTIBLE FOR TAX PURPOSES IS ABOUT 20 MILLION MR MANZI SAID HE IS COMFORTABLE WITH ESTIMATES THAT REVENUE FOR THE QUARTER WAS 225 MILLION TO 240 MILLION UP SLIGHTLY FROM LAST YEAR'S 2203 MILLION AFTER YEARS OF TRYING TO CATCH UP TO COMPETITORS IN KEY MARKETS ANALYSTS SAY LOTUS FINALLY HAS STRONG SOFTWARE PRODUCTS THAT OPERATE WITH MICROSOFT CORP'S POPULAR WINDOWS OPERATING SYSTEM MR MANZI SAID THAT THE JUNE SHIPMENT OF 123 RELEASE 40 FOR WINDOWS CONTRIBUTED TO THE STRONG QUARTER MR MANZI SAID HE IS FAIRLY COMFORTABLE WITH ANALYSTS' ESTIMATES OF OPERATING PROFIT FOR THE YEAR THAT HAVE RECENTLY BEEN MOVED UP TO A RANGE OF 140 TO 160 A SHARE LAST YEAR LOTUS REPORTED OPERATING PROFIT OF 572 MILLION OR 133 A SHARE BEFORE A GAIN ON THE SALE OF ITS INVESTMENT IN SYBASE CORP THAT MADE NET 804 MILLION OR 187 A SHARE 9307210113 930721 ROYAL DUTCH/SHELL RANKS FIRST IN ASSETS OUTSIDE HOME BASE SAYS UN REPORT BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL ROYAL DUTCH/SHELL GROUP HAS MORE ASSETS OUTSIDE ITS HOME BASE COUNTRIES THAN ANY OTHER COMPANY IN THE WORLD ACCORDING TO A NEW UNITED NATIONS REPORT THAT RANKS BIG COMPANIES FOR THE FIRST TIME BY FOREIGN INVESTMENTS AND URGES NATIONS TO LIBERALIZE POLICIES THAT RESTRICT FOREIGN OWNERSHIP THE 290PAGE WORLD INVESTMENT REPORT SAID THERE ARE 37000 TRANSNATIONAL CORPORATIONS THAT PRODUCE MORE SALES 55 TRILLION ANNUALLY IN GOODS AND SERVICE FROM THEIR FOREIGN OPERATIONS THAN FLOW ACROSS BORDERS THROUGH TRADE 4 TRILLION THERE WERE ONLY 7000 TRANSNATIONAL COMPANIES 20 YEARS AGO AFTER THE 69 BILLION IN FOREIGN ASSETS OF ROYAL DUTCH/SHELL THE ANGLODUTCH COMPANY THE NEXTLARGEST OVERSEAS INVESTORS ARE FORD MOTOR CO GENERAL MOTORS CORP EXXON CORP AND IBM CORP THOSE FOUR ARE USBASED COMPANIES WHICH REPRESENTS FIVE OF THE 10 LARGEST AND 27 OF THE LIST OF 100 BIGGEST TRANSNATIONALS ASEA BROWN BOVERI AG THE SWISS INDUSTRIAL AND FARM EQUIPMENT COMPANY WAS RANKED SEVENTH MATSUSHITA ELECTRIC INDUSTRIAL CO RANKED 12TH WAS THE LARGEST JAPANESE TRANSNATIONAL FIAT SPA 13TH WAS THE LARGEST FROM ITALY AND SIEMENS AG THE GERMAN ELECTRONICS GIANT RANKED 14TH BECAUSE OF THE BROAD ECONOMIC IMPACT OF FOREIGN INVESTMENT THE REPORT CALLED ON COUNTRIES AND MULTILATERAL ORGANIZATIONS TO SPEND AS MUCH TIME CONSIDERING LIBERALIZED POLICIES FOR CAPITAL FLOW AND FOREIGN OWNERSHIP OF PRODUCTION FACILITIES AS THEY DO NOW ON FREE TRADE NEGOTIATIONS MUCH OF THE FOCUS SO FAR HAS BEEN ON STRENGTHENING TRADE LINKAGES KHALIL HAMDANI CHIEF OF THE PROGRAMME ON TRANSNATIONAL CORPORATIONS TOLD A NEWS CONFERENCE IN NEW YORK THE REPORT SUGGESTS HE ADDED THAT CROSSNATIONAL AGREEMENTS BE SEEN AS FREE PRODUCTION AGREEMENTS NOT JUST FREE TRADE AGREEMENTS ALTHOUGH FOREIGN DIRECT INVESTMENT DROPPED TO 150 BILLION LAST YEAR AFTER REACHING A RECORD HIGH OF 234 BILLION IN 1990 THE REPORT EXPECTS SUBSTANTIAL GROWTH IN FDI FOR THE REMAINDER OF THE DECADE OPPORTUNITIES EXIST ESPECIALLY FOR DEVELOPING COUNTRIES THE REPORT SAID BECAUSE OF THE EMERGING TREND OF BIG COMPANIES INTEGRATING ACTIVITIES OF AFFILIATES RATHER THAN VIEWING THEM AS STANDALONE OPERATIONS A NUMBER OF TECHNOLOGY COMPANIES HAVE UNITS IN INDIA FOR WRITING SOFTWARE IRELAND SERVES AS A BASE FOR ENTRY AND PROCESSING OF DATA FOR INSURANCE COMPANIES AND JAMAICA IS THE LOCATION OF AIRLINE RESERVATION SYSTEMS FOR NORTH AMERICAN AIRLINES ANOTHER EXAMPLE CITED WAS FORD MOTOR WHOSE AFFILIATE FORD OF EUROPE RECENTLY COORDINATED ACTIVITIES IN BOTH EUROPE AND NORTH AMERICA IN DEVELOPING AND PRODUCING A WORLD CAR TO BE SIMULTANEOUSLY PRODUCED IN BOTH REGIONS IN PAST YEARS FORD WAS ORGANIZED WITH A SERIES OF NATIONALLYBASED AFFILIATES SERVING SINGLECOUNTRY MARKETS REORIENTATION OF POLICY THE REAL TASK FOR ALL COUNTRIES IS TO REORIENT THEIR POLICY NETWORK TO MATCH THE INCREASING SOPHISTICATION OF TRANSNATIONAL CORPORATIONS SAID MR HAMDANI GOVERNMENTS NEED TO FOCUS THEIR PROMOTIONAL STRATEGIES ON ATTRACTING THOSE FUNCTIONS IN WHICH THEIR COUNTRIES ALREADY HAVE OR CAN QUICKLY ACHIEVE A COMPARATIVE ADVANTAGE ALSO DRIVING INTEGRATION OF AFFILIATES THE REPORT SAID IS THE TENDENCY FOR MARKETS TO CONVERGE WITH MORE PRODUCTS SOLD IN THE SAME OR SIMILAR FORM IN A GROWING NUMBER OF NATIONAL MARKETS THAT TOGETHER WITH THE PUSH FOR COST SAVINGS THROUGH ORGANIZATIONAL REENGINEERING IS CAUSING A REVOLUTION IN THE WAY COMPANIES ARE ARRANGING FUNCTIONS SUCH AS RESEARCH AND DEVELOPMENT PROCUREMENT ACCOUNTING AS WELL AS COMPONENT MANUFACTURING AND ASSEMBLY SEPARATE ACTIVITIES PERFORMED IN INTERNATIONAL LOCATIONS ARE VALUED ACCORDING TO HOW THEY CONTRIBUTE TO THE OBJECTIVES OF THE FIRM AS A WHOLE RATHER THAN THEIR PROFITABILITY AT THE HOST COUNTRY LOCATION THE REPORT SAID DAVID GOLD A COAUTHOR OF THE REPORT SAID THAT BESIDES THE REEVALUTAION OF COUNTRY POLICIES THE MOVE TOWARD GLOBAL INTEGRATION IS BLURRING THE LINES THAT DETERMINE TAXATION AND LEGAL LIABILITY OTHER TRENDS CITED IN THE REPORT INCLUDE WHILE INVESTMENT FLOWS TO DEVELOPED COUNTRIES DROPPED SHARPLY DURING THE ECONOMIC SLUMP OF 1991 AND 1992 THEY ROSE TO 40 BILLION LAST YEAR FROM 31 BILLION IN 1990 ASIA ACCOUNTED FOR 21 BILLION OF THE 1992 TOTAL WITH CHINA'S PORTION DOUBLING FROM THE PREVIOUS YEAR'S 44 BILLION THE INVESTMENT FLOWS TO DEVELOPING COUNTRIES ARE EXPECTED TO DOUBLE TO 80 BILLION ANNUALLY IN REAL TERMS BY THE YEAR 2000 THERE WAS INCREASING CONCENTRATION OF FOREIGN DIRECT INVESTMENT IN SERVICES AND TECHNOLOGYINTENSIVE MANUFACTURING AT THE SAME TIME THERE WAS A DECLINING SHARE OF RESOURCEBASED MANUFACTURING ACTIVITIES 9307210112 930721 GOP PRESSING FOR TESTIMONY IN POSTAL PROBE HOUSE DEMOCRATIC LEADERS FEAR MORE LAWMAKERS MAY BECOME IMPLICATED BY DAVID ROGERS AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON REPUBLICANS PRESSED FOR THE RELEASE OF STILLSECRET TESTIMONY REGARDING HOUSE POST OFFICE OPERATIONS AS DEMOCRATS WORRIED THAT THE CASHFORSTAMPS SCANDAL COULD THREATEN LAWMAKERS BEYOND THEIR POWERFUL TAX CHAIRMAN DAN ROSTENKOWSKI A RESOLUTION ORDERING THE RELEASE OF TRANSCRIPTS COMPILED DURING A TASK FORCE INVESTIGATION LAST YEAR MAY BE OFFERED AS EARLY AS TODAY ON THE HOUSE FLOOR LAST SUMMER DEMOCRATS BLOCKED RELEASE OF THE MATERIAL BY A NARROW 207200 VOTE BUT IN THE AFTERMATH OF MONDAY'S GUILTY PLEA BY FORMER POSTMASTER ROBERT ROTA REPUBLICANS ARE INCREASINGLY CONFIDENT THEY CAN REVERSE THAT DECISION MR ROTA'S PLEA AND ACCOMPANYING COURT DOCUMENTS DIRECTLY BEAR ON THE GOVERNMENT'S INVESTIGATION OF MR ROSTENKOWSKI CHAIRMAN OF THE WAYS AND MEANS COMMITTEE BUT IN A SUMMARY OF THE CASE PROSECUTORS ALLEGE THE FORMER POSTMASTER PROVIDED CASH IN EXCHANGE FOR VOUCHERS AND STAMPS FOR SEVERAL LAWMAKERS DURING THE EARLY AND MID 1980S SPEAKER THOMAS FOLEY DESCRIBED HIMSELF AS SURPRISED AND DISTRESSED BY THE DETAILED ALLEGATIONS ATTRIBUTED TO MR ROTA AFTER BROAD ADMINISTRATIVE REFORMS WERE INSTITUTED IN THE LAST CONGRESS THE LEGAL PROCEEDINGS NOW RESURRECT A PAINFUL HISTORY THAT THE LEADERSHIP WOULD PREFER TO SEE LONG BEHIND IT CAUGHT CENTER STAGE IS MR ROSTENKOWSKI WHO REFUSED COMMENT EVEN AS HE WENT THROUGH A DAY OF MEETINGS WITH PRESIDENT CLINTON AND HOUSE AND SENATE NEGOTIATORS ON THE ADMINISTRATION'S PENDING DEFICITREDUCTION BILL COURT PAPERS FILED IN THE ROTA CASE POINT TO THE CHICAGO DEMOCRAT AS ONE OF THE UNIDENTIFIED CONGRESSMAN ALLEGED TO HAVE RECEIVED CASH FROM MR ROTA AND A LAW ENFORCEMENT OFFICIAL FAMILIAR WITH THE COURT PROCEEDINGS SAID THAT BASED ON THE INFORMATION PROVIDED BY MR ROTA MR ROSTENKOWSKI COULD BE CHARGED WITH HAVING MADE FALSE STATEMENTS ON GOVERNMENT VOUCHERS THE 58YEAROLD MR ROTA A CAREER PATRONAGE EMPLOYEE WITH A PENCHANT FOR ARABIAN HORSES WAS A HOUSE CHARACTER IN HIMSELF GOVERNMENT PAPERS ALLEGE THAT HE TESTIFIED FALSELY BEFORE THE SAME TASK FORCE WHOSE RECORDS REPUBLICANS NOW WANT RELEASED FRIENDS OF MR ROSTENKOWSKI SAY THAT HE HAS PRIVATELY INSISTED HE NEVER TOOK MONEY FROM THE POSTMASTER AND THOUGH THE CHAIRMAN HAS REFUSED SO FAR TO TESTIFY ON THE MATTER THE CONTRADICTORY ACCOUNTS ARE A STRIKING PART OF THE CASE BEYOND THE POST OFFICE THE WIDER GOVERNMENT INVESTIGATION OF MR ROSTENKOWSKI HAS FOCUSED ON WHETHER HE PERSONALLY BENEFITED FROM CAMPAIGN AND CONGRESSIONAL OFFICE EXPENDITURES IN CHICAGO BUT NONE OF THE EVIDENCE REFLECTED SO FAR IN COURT PAPERS THIS WEEK BEARS ON WHETHER THE CASH ALLEGEDLY RECEIVED FROM THE STAMP TRANSACTIONS WAS PUT TO PERSONAL USE BY THE CHAIRMAN OR ANY OF THE OTHER LAWMAKERS INVOLVED IF THE GOVERNMENT DECIDES TO PROCEED ON THE LESSER CHARGE OF MAKING FALSE STATEMENTS ON VOUCHERS IT WOULD SEEM SMALL BY COMPARISON BUT ANY INDICTMENT WOULD BE DISASTROUS FOR THE CHICAGO DEMOCRAT BECAUSE IT WOULD FORCE HIM TO GIVE UP HIS POWERFUL CHAIRMANSHIP UNDER HOUSE DEMOCRATIC RULES FLORIDA REP SAM GIBBONS AS THE RANKING MEMBER OF THE PANEL WOULD BECOME ACTING CHAIRMAN BUT THE TRANSITION HOWEVER ORDERLY WOULD EXPOSE A MAJOR VACUUM IN THE PANEL'S TOP LEADERSHIP AN AFFABLE 73YEAROLD VETERAN OF THE NORMANDY INVASION MR GIBBONS IS A STRONG ADVOCATE OF FREE TRADE BUT CRITICS FAULT HIM FOR TAKING AN OFTEN DOCTRINAIRE APPROACH TO ISSUES AND FAILING TO BUILD A STRONG EXPERT STAFF AROUND HIM HIS OPPOSITION TO TAX REFORM IN 1986 FURTHER STRAINED HIS RELATIONSHIP WITH MR ROSTENKOWSKI AND DESPITE HIS SENIORITY THE CHAIRMAN THEN KEPT MR GIBBONS OFF THE HOUSESENATE CONFERENCE ON THE LANDMARK BILL GIVEN THIS HISTORY MR GIBBONS AS ACTING CHAIRMAN COULD BE CHALLENGED IF A MORE PERMANENT CHAIRMAN HAD TO BE CHOSEN WHICH COULD OCCUR IF MR ROSTENKOWSKI LEFT OR IF THE SITUATION EXTENDED INTO THE NEXT CONGRESS THOUGH REP CHARLES RANGEL D NY COULD YET PROVE A STRONG CANDIDATE HE TOO IS SEEN AS A LESS FORCEFUL LEADER THAN MR ROSTENKOWSKI THIS VACUUM ONLY ADDS TO THE SENSE OF FOREBODING NOW IN THE PARTY LEADERSHIP FROM THE PRESIDENT'S CABINET TO REPUBLICANS THEMSELVES OFFICIAL WASHINGTON HAS SEEMED ALMOST TO RESIST THE DETAILED CHARGES LEVELED IN THE ROTA COURT DOCUMENTS I JUST CAN'T BELIEVE IT IT'S NOT THE DANNY I KNOW SAID TREASURY SECRETARY LLOYD BENTSEN AT A BREAKFAST WITH REPORTERS REP BOB LIVINGSTON A LOUISIANA REPUBLICAN EXPRESSED THE SAME SENSE OF DISBELIEF NOBODY REALLY BELIEVES IT SAID MR LIVINGSTON IF IT HAPPENED IT HAPPENED BUT IT'S JUST ONE OF THOSE HARDTOBELIEVE THINGS THIS DISBELIEF IS MATCHED AGAINST AN UNDERLYING ANGER AMONG THOSE WHO WERE MOST INTIMATELY INVOLVED IN PRIOR HOUSE INVESTIGATIONS INTO THE POST OFFICE'S OPERATIONS CHIEF AMONG THESE IS REP PAT ROBERTS A KANSAS REPUBLICAN AND SENIOR MEMBER OF THE HOUSE ADMINISTRATION COMMITTEE WHO SEES THE ROTA PLEA AS CONFIRMING ALL OF THE SUSPICIONS HE FELT A YEAR AGO IN LEADING A TASK FORCE ON THE POST OFFICE SCANDAL MR ROBERTS IS PRESSING THE HOUSE LEADERSHIP TO RELEASE THE VOUCHERS CITED IN THE COURT PAPERS SO AS TO CLEARLY IDENTIFY THOSE INVOLVED AND HE WANTS THE TRANSCRIPTS OF PAST TESTIMONY RELEASED IF ONLY TO DISPLAY THE ALLEGEDLY FALSE STATEMENTS MADE BY POST OFFICE WORKERS LIKE MR ROTA WHO HAVE SINCE ENTERED GUILTY PLEAS IN THE GOVERNMENT INQUIRY WE'VE GOT 110 NEW MEMBERS AND GIVEN THE PERTINENCY OF THE ISSUE IT'S A WHOLE NEW BALL GAME HE SAID OF THE EFFORTS TO REVERSE LAST YEAR'S VOTE I ALWAYS FELT I WAS RIDING SHOTGUN ON A STAGECOACH GOING BACKWARDS AFTER TWOANDAHALF YEARS THE ROTA PLEA JUST PROVES THE HOUSE CAN'T INVESTIGATE ITSELF 9307210111 930721 TECHNOLOGY PANEL BACKS LILLY'S PROZAC TO TREAT OBSESSIVE ILLNESS A WALL STREET JOURNAL NEWS ROUNDUP WASHINGTON A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL RECOMMENDED THAT THE AGENCY ALLOW ELI LILLY & CO'S DRUG PROZAC TO BE USED FOR TREATING OBSESSIVECOMPULSIVE DISORDER IF ACCEPTED BY THE AGENCY THE UNANIMOUS DECISION BY THE PSYCHOPHARMACOLOGIC DRUGS ADVISORY COMMITTEE WOULD OPEN A NEW MARKET FOR THE DRUG WHICH IS ALREADY USED TO TREAT DEPRESSION THOUGH THE AGENCY ISN'T REQUIRED TO FOLLOW THE ADVICE OF ITS ADVISORY PANELS IT GENERALLY DOES SO OBSESSIVECOMPULSIVE ILLNESS AN ANXIETY DISORDER AFFECTS NEARLY FIVE MILLION AMERICANS ANNUALLY PEOPLE WITH THE DISORDER ACCORDING TO INDIANAPOLISBASED LILLY SUFFER FROM RECURRENT INTRUSIVE IDEAS IMPULSES THOUGHTS OR BEHAVIORS THAT THEY KNOW ARE IRRATIONAL OR EXCESSIVE BUT THAT THEY CAN'T CONTROL THE FDA SAID THERE IS CURRENTLY ONE OTHER DRUG APPROVED FOR TREATING THE DISORDER ANAFRANIL MADE BY THE BASEL PHARMACEUTICALS DIVISION OF CIBAGEIGY CORP THE US UNIT OF CIBAGEIGY LTD OF SWITZERLAND RONALD NORDMANN AN ANALYST WITH PAINEWEBBER SAID THE COMMITTEE'S RECOMMENDATION AND POSSIBLE FDA APPROVAL ARE IMPORTANT SO THAT LILLY CAN PROMOTE THE DRUG FOR THIS USE HE SAID SOME PSYCHIATRISTS PROBABLY ARE ALREADY PRESCRIBING PROZAC FOR OBSESSIVECOMPULSIVE DISORDER BUT THAT THIS LIKELY WOULD INCREASE IF THE FDA APPROVES THE USE FOR THE DRUG SEPARATELY LILLY'S NEW CHAIRMAN RANDALL TOBIAS SAID EARNINGS FOR 1993 WOULD END UP AT THE LOW END OF ANALYSTS' EXPECTATIONS WHICH ARE AS LOW AS 445 A SHARE THINGS COULD GET WORSE IN 1994 SAID MR TOBIAS WHO WAS MAKING HIS FIRST APPEARANCE AS LILLY CHAIRMAN BEFORE SECURITIES ANALYSTS IN NEW YORK MR TOBIAS SAID LILLY WOULD BE CHALLENGED TO STAY EVEN WITH THIS YEAR'S RESULTS IN 1994 AT THE SAME TIME HE AND LILLY SCIENTISTS SAID THEY ARE HOPEFUL ABOUT DRUGS IN THE LILLY PIPELINE FOR ILLNESSES RANGING FROM OSTEOPOROSIS TO SCHIZOPHRENIA THAT COULD APPEAR ON THE US MARKET IN THREE TO FOUR YEARS LILLY STOCK ROSE 2125 OR 46 TO CLOSE AT 4850 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9307210110 930721 LETTERS TO THE EDITOR REDUCING PAPER CHASE CAN SAVE MILLIONS AN INSIGHTFUL COMMENT WAS INCLUDED IN YOUR ARTICLE ABOUT VICE PRESIDENT AL GORE'S ASPIRATIONS TO REINVENT GOVERNMENT GORE GETS EARFUL POLITICS & POLICY JUNE 23 DURING A TOUR OF GOVERNMENT AGENCIES A TREASURY DEPARTMENT EMPLOYEE COMPLAINED THAT IT TOOK ME A WHOLE WEEK TO DO THE PAPERWORK TO MEET THE REQUIREMENTS OF THE PAPERWORK REDUCTION ACT REDUCING PAPERWORK BURDENS IMPOSED ON FEDERAL EMPLOYEES THE ARTICLE SUGGESTED WAS A GOAL OF THE VICE PRESIDENT'S EFFORTS REDUCING SUPERFLUOUS PAPERWORK IS A WORTHY GOAL BUT I FEAR THE EMPLOYEE LOST SIGHT OF HIS RESPONSIBILITIES WHEN HE COMPLAINED ABOUT COMPLYING WITH THE PAPERWORK REDUCTION ACT WHAT MR GORE SHOULD HAVE SAID TO HIM WAS THAT THE WHOLE WEEK HE SPENT COMPLYING WITH THE ACT MAY HAVE SAVED THE PRIVATE SECTOR MILLIONS OF COMPLIANCE HOURS IN COMPLETING GOVERNMENT INFORMATION REQUESTS THOSE MILLIONS OF HOURS REPRESENT PERHAPS AS MUCH AS BILLIONS OF WASTED DOLLARS TO THE NATION'S ECONOMY CONGRESS IS NOW CONTEMPLATING AMENDMENTS TO THE 1980 PAPERWORK ACT THAT WILL REINVENT GOVERNMENT BY EMPOWERING THE AMERICAN PEOPLE WITH VICE PRESIDENT GORE'S HELP WE CAN ENACT A NEW PAPERWORK REDUCTION BILL THAT MAY FORCE THAT TREASURY DEPARTMENT EMPLOYEE TO WORK A BIT LONGER BUT WILL SAVE AMERICAN TAXPAYERS AND STRUGGLING SMALL BUSINESSES MILLIONS OF DOLLARS 9307210109 930721 MARKETING & MEDIA FCC TO ENFORCE NEW RATES FOR CABLE STARTING SEPT 1 WASHINGTON UNDER PRESSURE FROM CONGRESS AND CONSUMER GROUPS THE FEDERAL COMMUNICATIONS COMMISSION AGREED TO MOVE UP THE DATE FOR ENFORCING ITS CABLE TELEVISION RATE RULES TO SEPT 1 FROM OCT 1 THE RULES ADOPTED APRIL 1 AMID MUCH FANFARE ABOUT SAVING CONSUMERS 1 BILLION ANNUALLY ORIGINALLY WERE SCHEDULED TO GO INTO EFFECT JUNE 21 BUT SHORTLY BEFORE THAT TIME THE AGENCY POSTPONED ENFORCEMENT CITING A LACK OF RESOURCES TO MAKE THE POLICY EFFECTIVE CONSUMER GROUPS COMPLAINED THAT THE DELAY WOULD COST CONSUMERS SOME 300 MILLION AND THIS MONTH CONGRESS APPROVED 115 MILLION IN ADDITIONAL FUNDING TO ENFORCE THE RULES DIRECTING THE FCC TO MOVE UP THE ENFORCEMENT DATE A MONTH FCC CHAIRMAN JAMES QUELLO SAID THE COMMISSION AGREED TO THE NEW DATE PARTLY OUT OF CONCERN THAT CONGRESS MIGHT CUT FUTURE FCC CABLE RULEENFORCEMENT FUNDING THE FCC'S DECISION DIDN'T MOLLIFY CONSUMER ADVOCATES HOWEVER WHO ARGUED THAT THE DELAY ROBBED CONSUMERS OF CABLE REFUNDS IN A STATEMENT MR QUELLO SAID THE TREASURY DEPARTMENT'S PUBLIC DEBT BUREAU OFFERED TO ASSIGN PERSONNEL INCLUDING AS MANY AS 30 ACCOUNTANTS TO THE FCC FOR SIX MONTHS 9307210108 930721 SEARS EARNINGS SIGNAL RECOVERY IN RETAIL LINES STOCK RISES 9 AS RESULTS FOR THE SECOND QUARTER EXCEED EXPECTATIONS BY GREGORY A PATTERSON AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO SIGNALING THAT A LONGAWAITED TURNAROUND OF ITS RETAIL OPERATION FINALLY MAY BE AT HAND REPORTED BETTERTHANEXPECTED SECONDQUARTER EARNINGS SENDING ITS STOCK SURGING 9 AND HELPING TO LIFT THE ENTIRE MARKET AIDED BY A 635 MILLION GAIN FROM THE INITIAL PUBLIC OFFERING OF A 199 STAKE IN ITS ALLSTATE INSURANCE UNIT SEARS NET MORE THAN TRIPLED TO 101 BILLION OR 263 A SHARE FROM 3255 MILLION OR 85 CENTS A SHARE IN THE YEARAGO QUARTER IN THE LATEST PERIOD OTHER EXTRAORDINARY ITEMS INCLUDED A 1453 MILLION CHARGE FOR DEBT REDUCTION AND A 64 MILLION LOSS ON THE SALE OF ITS COLDWELL BANKER REAL ESTATE UNIT REVENUE FELL 37 TO 1216 BILLION FROM 1262 BILLION EVEN EXCLUDING THE ONETIME ITEMS SEARS'S SECONDQUARTER EARNINGS ROSE 78 TO 5806 MILLION OR 151 ASHARE THE RESULTS MARKED THE SECOND CONSECUTIVE QUARTER OF RECORD EARNINGS FOR THE BIG RETAIL AND INSURANCE CONCERN SEARS'S RESULTS WERE LED BY A PROFIT GAIN OF 73 AT ALLSTATE AND A 24 RISE IN THE MERCHANDISE UNIT CHIEFLY COMPRISING ITS STORES AND SEARSCHARGE CREDIT OPERATION ANALYSTS WHO BEGAN WARMING TO SEARS RECENTLY BECAUSE OF IMPROVING RETAIL SALES PERFORMANCE WERE STILL SURPRISED BY THE STRENGTH OF THE RESULTS WE HAD HIGH EXPECTATIONS AND SEARS'S EARNIGS SURPASSED THEM SAID THOMAS TASHJIAN A RETAIL ANALYST WITH FIRST MANHATTAN CO THE RESULTS ALSO SPURRED AT LEAST ONE ANALYST TO CHANGE TO BUY FROM HOLD HER RECOMMENDATION ON SEARS STOCK I CAN'T RESIST GOING TO A BUY BECAUSE OF NEARTERM EARNINGS APPRECIATION POTENTIAL SAID JANET MANGANO AN ANALYST WITH BURNHAM SECURITIES INC SEARS IS CONCLUDING A VAST CORPORATE RESTRUCTURING THAT INCLUDES DIVESTITURES OF ITS DEAN WITTER AND COLDWELL BANKER UNITS AND THE CLOSING OF ITS CATALOG BUSINESS SEARS SAID IT HAD SECOND QUARTER PROFIT FROM CONTINUING OPERATIONS OF 109 BILLION COMPARED WITH 2053 MILLION IN THE YEAREARLIER PERIOD FOR THE FIRST SIX MONTHS SEARS POSTED NET OF 144 BILLION OR 376 A SHARE COMPARED WITH A LOSS OF 127 BILLION OR 353 A SHARE LAST YEAR'S FIRST HALF INCLUDED A CHARGE OF 187 BILLION OR 513 A SHARE FOR THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE REVENUE FELL 43 TO 2345 BILLION FROM 2451 BILLION IN THE FIRST QUARTERLY EARNINGS REPORT SINCE SEARS SOLD THE ALLSTATE CORP STAKE LAST MONTH THE INSURANCE UNIT POSTED EARNINGS OF 3967 MILLION OR 94 CENTS A SHARE COMPARED WITH A PRO FORMA 2296 MILLION OR 53 CENTS A SHARE IN THE YEAREARLIER PERIOD ON AN OPERATING BASIS WHICH EXCLUDES CAPITAL GAINS ALLSTATE EARNED 83 CENTS A SHARE VERSUS 52 CENTS A YEAR AGO ALLSTATE ATTRIBUTED THE BETTERTHANEXPECTED RESULTS TO REDUCED LOSSES ON CATASTROPHES ALLSTATE SHARES ROSE 25 CENTS TO 30625 IN BIG BOARD TRADING THE EARNINGS WERE VERY STRONG SAID GOLDMAN SACHS & CO ANALYST THOMAS CHOLNOKY OF THE ALLSTATE RESULTS IT WAS A GOOD QUARTER STRONG RETAIL PERFORMANCE AT THE MERCHANDISE GROUP EARNINGS ROSE TO 1625 MILLION FROM 1311 MILLION A YEAR AGO WITH SEARSCHARGE EARNINGS CONTRIBUTING 1155 MILLION UP FROM 1048 MILLION SEARS STORES EARNED 522 MILLION IN THE QUARTER UP 36 FROM 384 MILLION A YEAR AGO SEARS SAID IT LOGGED STRONGER SALES IN APPLIANCES AND APPAREL WHICH INCREASED 14 IN THE QUARTER SEVERAL ANALYSTS WERE MOST IMPRESSED WITH SEARS'S ABILITY TO CUT EXPENSES DURING THE QUARTER SEARS'S SELLING AND ADMINISTRATION EXPENSES A TELLTALE SIGN OF PROFITABILITY IN RETAILING DROPPED TO 304 OF SALES IN THE QUARTER FROM 322 A YEAR EARLIER THEY'RE GETTING THEIR COST STRUCTURE IN LINE SAID KAREN SACK A RETAIL STOCK ANALYST WITH STANDARD & POOR'S CORP MS SACK SAID LOWER COSTS HELPED SEARS IMPROVE EARNINGS EVEN THOUGH ITS GROSS MARGINS ON SALES WERE LOWER THAN A YEAR AGO BECAUSE THE COMPANY IS LOWERING PRICES TO BOOST SALES SEARS CHAIRMAN EDWARD A BRENNAN TERMING THE SECONDQUARTER EARNINGS EXCELLENT CONTENDED THE RESULTS SHOW THAT SEARS'S RESTRUCTURING PROGRAM IS AHEAD OF SCHEDULE BUT THE EARNINGS RELEASED A MONTH AHEAD OF MOST OTHER MAJOR RETAILERS BECAUSE SEARS IS ON A CALENDAR RATHER THAN A FISCAL YEAR AREN'T EXPECTED TO FORESHADOW EARNINGS UPTICKS THROUGHOUT THE INDUSTRY ANALYSTS MAINTAINED THAT THE RESULTS ARE PECULIAR TO SEARS'S RESTRUCTURING PROGRAM 9307210107 930721 BUSINESS BRIEF MARTIN MARIETTA'S SECONDQUARTER NET ROSE 25 GRUMMAN'S PROFIT WAS FLAT MARTIN MARIETTA CORP FATTENED BY A MAJOR ACQUISITION REPORTED A 25 INCREASE IN SECONDQUARTER NET INCOME TO 124 MILLION OR 228 A SHARE WHILE GRUMMAN CORP'S NET INCOME HELD NEARLY STEADY AT 268 MILLION OR 79 CENTS A SHARE THE MARTIN MARIETTA RESULTS THE FIRST TO REFLECT THE COMPANY'S APRIL 2 ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE DIVISION COMPARE WITH YEARAGO NET INCOME OF 99 MILLION OR 206 A SHARE FULLY DILUTED MARTIN MARIETTA PERSHARE EARNINGS WERE 198 FOR THE RECENT QUARTER COMPARED WITH 206 A YEAR EARLIER THE INCREASE IN SHARES OUTSTANDING ON A FULLY DILUTED BASIS REFLECTS THE 145 MILLION COMMON SHARES ASSOCIATED WITH THE 1 BILLION CONVERTIBLE PREFERRED STOCK ISSUED TO GE THAT WAS DONE IN CONNECTION WITH ITS 305 BILLION SALE TO MARTIN MARIETTA SALES OF MARTIN MARIETTA AN AEROSPACE AND DEFENSE COMPANY IN BETHESDA MD INCREASED 65 TO 26 BILLION FROM 16 BILLION NORMAN AUGUSTINE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THAT MARTIN MARIETTA'S 184 BILLION BACKLOG HAD NEARLY DOUBLED FROM YEARAGO LEVELS BEFORE THE ACQUISITION HE SAID THE RECENT QUARTER'S RESULTS REFLECT WORKER EFFORTS TO CREATE A TRULY INTEGRATED AND EFFICIENT COMPANY FROM THE MERGED OPERATIONS THE COMPANY SAID ITS ELECTRONICS GROUP THE LARGEST OF SIX REALIGNED OPERATING SEGMENTS FORMED IN APRIL ACHIEVED OPERATING MARGINS OF NEARLY 9 ON MORE THAN 12 BILLION IN SALES DURING THE QUARTER FOR THE SIX MONTHS A PERIOD THAT INCLUDED THE EFFECT OF A FIRSTQUARTER ACCOUNTING CHANGE RELATING TO RETIREE HEALTHCARE BENEFITS MARTIN MARIETTA HAD A NET LOSS OF 2115 MILLION OR 477 A SHARE INCOME BEFORE THE ACCOUNTING CHANGE WAS 2005 MILLION OR 390 A SHARE IN THE YEAREARLIER PERIOD THE COMPANY HAD NET INCOME OF 1736 MILLION OR 357 A SHARE SALES FOR THE SIX MONTHS INCREASED 28 TO 378 BILLION FROM 295 BILLION AT GRUMMAN AN AEROSPACE AND DEFENSE COMPANY IN BETHPAGE NY SECONDQUARTER NET INCOME WAS FLAT DESPITE A 126 SALES DECLINE TO 7462 MILLION FROM 8538 MILLION AND THE SHEDDING OF AN INSURANCE OPERATION NET INCOME IN THE 1992 PERIOD WAS 269 MILLION OR 77 CENTS A SHARE GRUMMAN EARNED 238 MILLION OR 68 CENTS A SHARE FROM CONTINUING OPERATIONS IN THE 1992 QUARTER SIXMONTH NET INCOME FOR GRUMMAN WAS 544 MILLION OR 160 A SHARE INCLUDING A 67 MILLION LOSS FROM DISCONTINUED OPERATIONS IN THE PRIOR YEAR THE COMPANY HAD A NET LOSS OF 1406 MILLION OR 422 A SHARE INCLUDING A 198 MILLION ACCOUNTING CHANGE FOR RETIREMENT BENEFITS AND 44 MILLION OF INCOME FROM DISCONTINUED OPERATIONS SALES SLID 103 TO 162 BILLION FROM 18 BILLION IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY AFTERNOOON MARTIN MARIETTA SHARES WERE QUOTED AT 8075 DOWN 75 CENTS GRUMMAN WAS QUOTED AT 41 DOWN 625 CENTS 9307210105 930721 REVIEW & OUTLOOK EDITORIAL POOR HEALTH WITH HILLARY RODHAM CLINTON IN CHARGE OF NATIONALIZED MEDICINE AND DONNA SHALALA AT HHS IT IS PROBABLY INEVITABLE THAT CLASS CONSCIOUSNESS IS GOING TO NOW PERVADE HEALTH CARE AS IT HAS ECONOMICS THE NEW ENGLAND JOURNAL OF MEDICINE HELPED THINGS ALONG RECENTLY WITH ITS REPORT ON THE SOCIOLOGY OF DEATH RATES IT'S AN INTRIGUING SUBJECT RAISING AGAIN THE ISSUE OF WHY THINGS DON'T SEEM TO GET BETTER AMONG THE SOCALLED UNDERCLASS THE ESSENCE OF THE FINDINGS IS THAT THE POOR AND THE UNEDUCATED DIE YOUNGER THE NEJM STUDY COMPARED MORTALITY DATA IN 1960 AND IN 1986 AND SAW RECURRENT CORRELATIONS BETWEEN WHAT A SEPARATE EDITORIAL IN THE PUBLICATION A BIT TENDENTIOUSLY CALLS PRIVILEGE AND HEALTH BEYOND THE THOUGHT THAT THE US IS A MERITOCRACY NOT 16THCENTURY FRANCE SEVERAL OTHER QUESTIONS LEAP TO MIND THE FIRST IS ONE WE INCREASINGLY FIND OURSELVES ASKING AS AN INITIAL SCREEN TO EXERCISES SUCH AS THIS ARE THE POOR NECESSARILY THE SAME PEOPLE AT DIFFERENT POINTS OVER A LIFETIME THE RICH THE STUDY ATTEMPTED TO ADJUST FOR VARIATIONS IN THE PROPORTIONAL SIZE OF INCOME GROUPS BUT WE PERSIST IN BELIEVING THAT THESE APPARENT DISPARITIES ARE OFTEN MUDDIED BY THE CONSIDERABLE MOBILITY FACTOR IN THE AMERICAN ECONOMY AS PEOPLE MOVE IN AND OUT OF MIDDLERUNG STATUS MOREOVER INCOME CAN BE GREATLY A FACTOR OF AGE STUDENTS AND THE RETIRED FOR EXAMPLE CAN MAKE LITTLE MONEY AND STILL BE COMFORTABLE IT MATTERS WHETHER PATTERNS ARE LIFELONG OR ATTEND TO TRANSITORY SITUATIONS APPARENTLY WE DON'T KNOW THE ANSWER IN THIS CASE THEN THERE IS THE IMPORTANT MATTER OF BEHAVIOR IN PART THIS GETS US BACK TO THE OPENING QUESTION ARE THE POOR IN THE 1986 STUDY PEOPLE WHOSE HABITS OF LIFE ARE COMPARABLE TO THE GROUP IN 1960 OR HAVE WE BEGUN TO LOOK AT AN UNDERCLASS OF EXTRAORDINARY PATHOLOGY OWING AS MUCH TO ISOLATION AS TO POVERTY THE ANSWER IS WE KNOW LITTLE ABOUT THE EARLIER SAMPLE AND IF THAT BEHAVIOR OR HABITS HAVE BECOME MORE UNHEALTHFUL OVER THE 26 YEARS OR ALTERNATIVELY THE HABITS OF THE NONPOOR HAVE BECOME MORE HEALTHFUL PERHAPS WE SHOULD MORE APPROPRIATELY BE TALKING ABOUT BEHAVIOR RATHER THAN INCOME CATEGORIES WE SPOKE WITH EACH OF THE FOUR AUTHORS OF THE NEJM PAPER AND GOT FROM THEM A SENSE THAT NOT MUCH IS KNOWN ABOUT THE DIET EXERCISE AND DRUGTAKING REGIMENS OF THE SAMPLES SIMILARLY ABOUT THE SEXUAL HABITS INVOLVEMENT WITH WEAPONS AND OTHER VIOLENT EPISODES HOWEVER A RELATED SURVEY IS BEING DONE THIS YEAR TO BE OUT IN 1994 THAT MAY SPEAK TO SOME OF THESE AREAS WE DID GET FROM COAUTHOR WILBUR HADDEN THE VIEW THAT AS INEQUALITY HAS GROWN WE HAVE SEEN DIFFERENCES IN EXPOSURE BEYOND THE CONTROL OF THE INDIVIDUALS INVOLVED SUCH AS A LIKELIHOOD THE BLACK POOR WILL LIVE NEAR TOXICWASTE DUMPS AND THE RICH WILL INHABIT AREAS WITH BETTER AIR QUALITY GREGORY PAPPAS THE ONLY MEDICAL DOCTOR OF THE FOUR BUILT ON THAT IDEA OBSERVING THAT THE POOR HAVE MORE DANGEROUS JOBS IS THE 1986 SAMPLE AS LIKELY TO HAVE JOBS AS THE ONE IN 1960 AND SPEND THEIR LIVES SURROUNDED BY MULTIPLE THREATS HE MENTIONED A BLACK WOMAN OVERWEIGHT WITH HYPERTENSION WHO VISITED HIS OFFICE TOLD SHE SHOULD WALK FOR EXERCISE SHE REPLIED ARE YOU CRAZY I'LL GET KILLED WALKING IN MY NEIGHBORHOOD IT IS EASY TO SYMPATHIZE WITH LOWINCOME PEOPLE WHO CANNOT FEEL SAFE ON THE STREETS OUTSIDE THEIR HOMES BUT PREVENTIVE MEASURES OR HEALTHFUL HABITS ARE NOT NECESSARILY EXPENSIVE OR DIFFICULT TO FOLLOW UNLESS ONE'S LIFE IS EXCEEDINGLY DISORGANIZED IT IS POSSIBLE TO CONSTRUCT A MEAL PLAN THAT IS GOOD FOR BOTH THE BODY AND THE POCKETBOOK THOUGH ADMITTEDLY HEALTHFUL ITEMS SUCH AS SOME FRUITS AND VEGETABLES CAN BE EXPENSIVE AT THE GROCERY BUT IT DOES NOT COST MONEY TO ABSTAIN FROM CERTAIN ACTIVITIES THAT CARRY WITH THEM AN OBVIOUS RISK OF DISEASE NOTABLY CARDIOVASCULAR DISEASE AND CANCER COLUMBIA UNIVERSITY'S CENTER ON ADDICTION AND SUBSTANCE ABUSE HAS JUST REPORTED THAT 1 OF EVERY 5 SPENT BY MEDICAID IS ATTRIBUTABLE TO THE ABUSE OF TOBACCO ALCOHOL AND DRUGS STILL WE HAVE THE NEJM CONTENDING EDITORIALLY THE INCREASED FREQUENCY OF TRAUMA AND SUBSTANCE ABUSE AMONG THE POOR CANNOT EXPLAIN THE INCREASED MORBIDITY AND MORTALITY FROM OTHER COSTS ONE CAN IMAGINE A HOST OF OTHER INFLUENCES SUCH AS DIET STRESS EXPOSURE TO INFECTIOUS AGENTS OR TOXIC CHEMICALS THAT ARE RELATED TO SOCIOECONOMIC STATUS BUT THERE IS VERY LITTLE EVIDENCE TO POINT TO ANY OF THEM AS A MAJOR CAUSE OF THE HEALTH DIFFERENCE BETWEEN THE ADVANTAGED AND THE DISADVANTAGED PERHAPS IT WOULD BE BETTER SIMPLY TO SAY THERE IS INSUFFICIENT EVIDENCE PERIOD WHEN IT COMES TO EXPLAINING LINKS BETWEEN DEMOGRAPHY AND HEALTH THERE ARE INDEED SOME INTERESTING QUESTIONS HERE ABOUT WHY SOME PEOPLE ARE HEALTHIER THAN OTHERS BUT IF STUDIES SUCH AS THIS BECOME MORE FODDER IN DEBATES OVER FAIRNESS INCOMES AND THE PRIVILEGED WE ARE NOT LIKELY TO ACCOMPLISH MUCH THAT IS USEFUL FOR THE LEAST HEALTHY AMONG US 9307210102 930721 LEISURE & ARTS THE GRANDDADDY OF FOODIE GATHERINGS BY PAUL LEVY OXFORD ENGLAND ACADEMIC CONFERENCES ON FOOD AND COOKERY ARE NOW COMMONPLACE BUT THE ANCESTOR OF THEM ALL IS HELD EVERY YEAR AT ST ANTONY'S COLLEGE OXFORD NOW IN ITS 11TH OR 12TH YEAR ONE OF ITS ECCENTRICITIES IS THAT NOT EVEN THE FOUNDERS OF THE OXFORD SYMPOSIUM ON FOOD AND COOKERY CAN AGREE ON EXACTLY HOW MANY THERE HAVE BEEN THE CONFERENCE ATTRACTS FOOD SCHOLARS FROM ALL OVER THE GLOBE ACADEMICS JOURNALISTS BUSINESS PEOPLE AND COOKS THIS YEAR'S ATTENDEES INCLUDED A SYRIAN ACADEMIC WHO TEACHES IN POLAND A SCIENTIST FROM DAGESTAN HERE FOR THE THIRD TIME A BRITISH PROFESSOR OF THE SOCIOLOGY OF FOOD FROM HIROSHIMA UNIVERSITY A COUPLE OF DOZEN NORTH AMERICANS PLUS TWO OR THREE SCHOLAR FOODIES EACH FROM SPAIN FRANCE TURKEY THE NETHERLANDS SCANDINAVIA LATIN AMERICA AND AUSTRALIA IT IS THE MIX OF NATIONALITIES AND PROFESSIONAL INTERESTS THAT SETS THE AMIABLY DOTTY AND ANARCHIC TONE OF THE PROCEEDINGS THE TOPIC FOR THIS YEAR'S SYMPOSIUM WAS LOOK AND FEEL DESPITE THE BABYTALK TITLE THERE WERE SOME FASCINATING PAPERS AND DISCUSSIONS ABOUT THE IMPORTANCE OF THE APPEARANCE AND TEXTURE OF FOODSTUFFS AND THEIR PRESENTATION AS MEALS THE VERY FIRST SESSION ON SATURDAY MORNING INVOLVED A RIVETING DISCUSSION WITH FRANCOISE SABBAN A FRENCH PROFESSOR OF CHINESE THE PROFESSOR TALKED ABOUT THE DIFFERENCES BETWEEN CHINESE AND JAPANESE ATTITUDES TO WHAT'S ON THE PLATE WITH SOME REVELATORY MATERIAL ABOUT THE PREJUDICE MANY CHINESE HAVE AGAINST WHAT THEY SEE AS THE BLANDNESS OF JAPANESE FOOD THE CONFUCIAN PROHIBITION OF RAW FOOD NATURALLY PREDISPOSES MANY CHINESE TO REGARD SASHIMI AND OTHER RAW FISH AS A BARBARISM AND PROF SABBAN QUOTED AN EXTRAORDINARY ACCOUNT OF A CHINESE TRAVELER TO JAPAN EARLIER THIS CENTURY WHO WAS OFFENDED BY THE SMELL OF JAPANESE GRILLED FISH IN THE SAME SESSION THERE WAS AN ACCOUNT BY PROF DOREEN FERNANDEZ FROM MANILA OF CELEBRATIONS IN THE PHILIPPINES IN WHICH WHOLE TOWNS ARE BEDECKED WITH ELABORATE EDIBLE DECORATIONS AND BY PROF RICHARD HOSKING FROM HIROSHIMA OF WHAT HE FELT WAS THE JAPANESE PROPENSITY TO STRESS THE APPEARANCE OF FOOD SOMETIMES AT THE EXPENSE OF ITS TASTE HIS ILLUSTRATED TALK WAS CALLED TOO PRETTY TO EAT IT WAS NOT DIFFICULT FOR VALERIE MARS A LONDON FOOD SCHOLAR WHO GAVE A PAPER IN THE NEXT SESSION TO FIND SCORES OF EXAMPLES OF THE SAME PHENOMENON IN VICTORIAN BRITISH COOKERY BOOKS THOUGH ELIZA ACTON'S FLIGHTS OF CULINARY FANCY SAID MS MARS STILL BORE SOME RELATION TO THE NATURAL ORIGINS OF FOOD BY THE TIME OF HARRIET DE SALLIS'S 1892 ENTREES A LA MODE THERE WERE DISHES SUCH AS LOBSTER A LA NEWMARKET CONSISTING OF TWO ASPICMOLDED JOCKEY'S CAPS IN WHICH NO PART OF THE LOBSTER WAS VISIBLE ALL THAT IS NATURAL IS BANISHED AND THE INGREDIENTS ARE RECONSTITUTED INTO ICONS COLORED FOR INDIVIDUAL AGGRANDIZEMENT IN THE OWNER'S RACING COLORS IN A PAPER ON FILIPPO MARINETTI'S FUTURIST COOKBOOK ROSE ARNOLD WHO HAD SET OUT TO RECONSTRUCT A FUTURIST BANQUET EARLIER THIS YEAR AS A JOKE SAID SHE FOUND HERSELF SO DISTRESSED BY HER RESEARCH FOR IT THAT SHE DENOUNCED MARINETTI AS A FASCIST BRUTE SHE SAID THAT THE EXPERIENCE HAD MADE HER THINK HARD ABOUT THE ETHICS OF FOOD IN THE SPIRITED DISCUSSION THAT FOLLOWED THE RAISED VOICES WERE NEVER LESS THAN POLITE FOOD ITSELF DOES PLAY AT LEAST A SMALL ROLE IN THE OXFORD SYMPOSIUM THE HIGHLIGHT IS ALWAYS THE SATURDAYLUNCH BUNFIGHT TO WHICH MOST SYMPOSIASTS CONTRIBUTE AN EXOTIC DISH OF THEIR OWN MAKING AND THEN PARTICIPATE IN A GREEDY SCRUM TO GET A TASTE OF EVERYBODY ELSE'S DISHES SATURDAY NIGHT'S DINNER HAD A GLOUCESTERSHIRE THEME WITH COTSWOLDS EEL PIE CHELTENHAM LAMB AND AN EXECRABLE ENGLISH WHITE WINE PRODUCED IN THAT AREA OF ENGLAND WHICH BORDERS OXFORDSHIRE SUNDAY LUNCH WAS ENTIRELY FINNISH AND CONSISTED OF HERRINGS VARIOUS AND MANY SMOKED TROUT BOILED POTATOES AND EXTREMELY ODD MUTTON SMOKED IN THE SAUNA BY UNANIMOUS CONSENT THE HIGH POINT OF THE SYMPOSIUM WAS A LECTURE/PERFORMANCE BY ALICIA RIOS OF MADRID THE DISTINGUISHED FOOD WRITER FOR AMERICAN VOGUE JEFFREY STEINGARTEN HAILED IT AS A MAJOR EVENT IN THE 50000YEAR HISTORY OF GASTRONOMY MS RIOS'S PAPER WAS A POSTMODERNIST HAPPENING IN ITSELF AS IT CONSISTED OF A TITLE AND ONLY A SINGLE LINE OF TEXT SHE CALLED IT ORGANOLEPTIC DECONSTRUCTION IN THREE MOVEMENTS AND IT READ THUS DEMONSTRATIONS AND EXPERIMENTS AN EXPLORATION OF THE TEXTURE SOUND AND APPEARANCE OF VARIOUS SUBSTANCES OUT OF THEIR USUAL CONTEXT MS RIOS WAS ARRAYED IN WHITE DARINGLY AS IT TURNED OUT IN THE FIRST MOVEMENT MS RIOS PLACED BOWLS OF 10 OR SO FOODS WHICH HAD IN COMMON ONLY THAT THEY WERE COLORED PINK AND WHITE ON THE LECTURE TABLE THEY INCLUDED STRAWBERRIES AND A CANISTER OF WHIPPED CREAM GELATIN MELONS TUBULAR MARSHMALLOWS MERINGUES AND ROCK SUGAR SHE PROCEEDED TO CHEW EACH OF THESE FOODS BUT WITH HER FINGERS NOT HER TEETH THUS THE STRAWBERRIES WERE REDUCED TO A SQUISHY PULP AND THE MODERATOR OF THE SESSION SPRAYED HER FINGERS WITH CREAM FROM THE CAN THE POINT SAID MR STEINGARTEN WAS THAT MS RIOS HAD TAKEN THE ACT OF MASTICATING FOOD OUT OF ITS CONTEXT BY USING THE LARGER EXTERNAL SENSORY ORGANS THE FINGERS IN PLACE OF THE SMALLER INTERNAL ONES TEETH TONGUE AND PALATE SHE HAD THUS MADE PUBLIC AN ACT THAT IS ESSENTIALLY PRIVATE AND THAT THOUGHT ANOTHER PARTICIPANT WAS WHY THE AUDIENCE TITTERED NERVOUSLY DURING THE PERFORMANCE ANOTHER DENIED THIS AND SAID THE REASON FOR LAUGHTER WAS THAT MS RIOS WAS DOING SOMETHING WE HAVE ALL BEEN TAUGHT NEVER TO DO NAMELY PLAY WITH OUR FOOD IN THE SECOND MOVEMENT MS RIOS PINNED UP WITTY ATTRACTIVE ADVERTISING PICTURES OF FOOD AND DRINK SUCH AS ASPARAGUS YOGURT CORN ON THE COB BEER WATERMELON AND AN APPLE AND PLAYED HIGHLY AMPLIFIED STUDIO RECORDINGS OF EACH OF THESE BEING CHEWED AND SWALLOWED THOUGH YOU COULDJUSTTELL THE DIFFERENCE THERE WAS A DISTINCT RESEMBLANCE TO THE SOUNDS OF PIGS AT THE TROUGH MS RIOS ASSURED ME PRIVATELY THAT THE RECORDINGS HAD BEEN MADE BY HER OWN HUSBAND WHO IS A VERY POLITE EATER FOR THE FINALE MS RIOS PLACED ON THE TABLE A TRANSPARENT MATTRESS FILLED WITH POTATO CHIPS SHE THEN PROCEEDED TO LIE ON IT AND ROLL ABOUT IN A WAY THIS WAS A REPRISE OF THE FIRST MOVEMENT FOR IT MADE US SEE THAT THERE ARE OTHER WAYS BESIDES CHEWING TO APPRECIATE THE TEXTURE OF FOOD IN A FOOTNOTE MS RIOS TOLD ME THAT SHE HAD REQUIRED 100 SMALL PACKETS OF BRITISH POTATO CHIPS TO FILL THE MATTRESS SPANISH POTATO CHIPS ARE SO MUCH LARGER SHE SAID THAT FIVE REGULATION LARGESIZE BAGS WOULD STUFF THE MATTRESS WITH ENOUGH LEFT OVER FOR A PILLOW 9307210101 930721 INTERNATIONAL HONG KONG CONSTRUCTION RISES HONG KONG THE VALUE OF CONSTRUCTION IN HONG KONG PERFORMED BY MAIN CONTRACTORS ROSE 55 TO 17 BILLION HONG KONG DOLLARS US219 BILLION IN THE FIRST QUARTER FROM A YEAR EARLIER ACCORDING TO A GOVERNMENT SURVEY A SPOKESMAN FROM THE CENSUS AND STATISTICS DEPARTMENT ATTRIBUTED THE INCREASE TO MORE ACTIVE CONSTRUCTION WORK AT PUBLIC SITES AND A SIGNIFICANT GROWTH OF CONSTRUCTION ACTIVITIES AT LOCATIONS OTHER THAN CONSTRUCTION SITES HOWEVER COMPARED WITH THE FOURTH QUARTER THE SURVEY FOUND THE VALUE OF CONSTRUCTION DROPPED 73 9307210100 930721 KASLER UNIT GETS MINE CONTRACT KASLER HOLDING CO SAID ITS INDUSTRIAL CONSTRUCTORS CORP UNIT WAS AWARDED A 15 MILLION CONTRACT TO PERFORM MINESITE DEVELOPMENT FOR HECLA MINING CO OF COEUR D'ALENE IDAHO THE PROJECT CALLED THE GROUSE CREEK GOLD MINE IS LOCATED IN CENTRAL IDAHO NEAR CHALLIS WORK WILL BEGIN IMMEDIATELY AND IS EXPECTED TO BE COMPLETED IN NOVEMBER 1994 KASLER BASED IN HIGHLAND CALIF HAS OPERATIONS IN MINING AND RELATED FIELDS INDUSTRIAL CONSTRUCTORS IS BASED IN MISSOULA MONT 9307210099 930721 HOLLYWOOD PARK MULLS PURCHASE INGLEWOOD CALIF HOLLYWOOD PARK INC SAID IT IS CONSIDERING ACQUIRING WOODLANDS RACE TRACK A KANSAS CITY KAN HORSERACING AND GREYHOUNDRACING FACILITY THAT IS 60OWNED BY HOLLYWOOD PARK'S CHIEF EXECUTIVE RD HUBBARD THE COMPANY WHICH OWNS AND OPERATES HOLLYWOOD PARK RACE TRACK HERE SAID IT APPOINTED A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS TO EXPLORE THE ACQUISITION THE INVESTMENT BANKING FIRM OF OPPENHEIMER & CO HAS BEEN RETAINED TO ASSIST THE COMMITTEE IN ITS EVALUATION 9307210098 930721 CREDIT MARKETS DISNEY AMAZES INVESTORS WITH SALE OF 100YEAR BONDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CORPORATE RACE TO LOCK IN LOW CREDIT COSTS HIT A FEVER PITCH AS WALT DISNEY CO BEGAN MARKETING THE FIRST 100YEAR BONDS TO BE SOLD BY ANY BORROWER SINCE 1954 BOND TRADERS WERE STUNNED TO HEAR THAT THE ENTERTAINMENT CONCERN IS EXPECTING TO SELL 150 MILLION OF 100YEAR BONDS AT A YIELD OF ONLY ABOUT 75 BARELY 095 PERCENTAGE POINT ABOVE 30YEAR US TREASURY BONDS IT'S CRAZY SAID WILLIAM GROSS HEAD OF FIXEDINCOME INVESTMENTS AT PACIFIC INVESTMENT MANAGEMENT CO NOTING THE UPS AND DOWN OF THE ENTERTAINMENT INDUSTRY HE SAID LOOK AT THE PATH OF CONEY ISLAND OVER THE LAST 50 YEARS AND SEE WHAT HAPPENS TO AMUSEMENT PARKS OBVIOUSLY WE'RE GOING THROUGH A PHASE IN THE MARKET WHERE EVERYONE IS PUSHING THE ENVELOPE WHERE THEY CAN SAID GLENN MURPHY CHIEF INVESTMENT OFFICER OF TRAVELERS ASSET MANAGEMENT INC THE DISNEY ISSUE WILL TURN OUT TO BE A HISTORIC ARTIFACT A CURIOSITY HE SAID DISNEY'S BOND ISSUE MAY NOT REALLY BE AROUND FOR A CENTURY IT CAN BE CALLED AWAY FROM INVESTORS BY THE COMPANY AFTER 30 YEARS BUT DEMAND FOR THE ISSUE IS SAID TO BE BRISK AND THERE IS EVEN SOME TALK THAT THE OFFERING SIZE MIGHT BE INCREASED THE 100YEAR BUYERS ARE EXPECTED TO BE THE USUAL FLOCK OF PENSION FUNDS INSURERS AND FINANCIAL ADVISERS ACCORDING TO MARK SEIGEL HEAD OF CORPORATE UNDERWRITING AT MORGAN STANLEY & CO WHICH WILL LEAD THE UNDERWRITING MERRILL LYNCH & CO WILL COMANAGE THE DEAL WHILE 100YEAR BONDS ARE RARE THEY SEEM A FITTING CLIMAX TO A RECENT FLURRY OF VERY LONGDATED CORPORATE BONDS SO FAR THIS YEAR FIVE COMPANIES HAVE SOLD 50YEAR BONDS FOR A TOTAL OF 113 BILLION LAST YEAR ONE COMPANY SOLD 50YEAR BONDS AND BEFORE THAT NONE HAD SOLD SUCH LONGDATED SECURITIES IN DECADES DEMAND FOR SUCH LONGDATED BOND ISSUES HAS GROWN IN RECENT MONTHS BECAUSE INVESTORS SICK OF MEASLY RETURNS ARE BECOMING MORE WILLING TO SHOULDER GREATER RISKS IN RETURN FOR HIGHER YIELDS EVEN MARGINALLY HIGHER ONES AS IN THE CASE OF THE DISNEY BONDS UTILITY DUKE POWER CO SOLD 40YEAR FIRST AND REFUNDING MORTGAGE BONDS YESTERDAY THAT WERE PRICED TO YIELD 7267 THE BONDS ARE NONCALLABLE FOR 10 YEARS IN THE TREASURY BOND MARKET THE YIELD ON THE BENCHMARK 30YEAR BOND ROSE SLIGHTLY TO 655 FROM 654 MONDAY PEOPLE ARE CHASING HIGHER YIELDS SAID PACIFIC INVESTMENT'S MR GROSS FROM A BUYER STANDPOINT IT DOESN'T MAKE ANY SENSE TO BUY A 100YEAR BOND HE SAID FROM AN ISSUER STANDPOINT IT DOES MAKE SENSE TO LOCK IN A LOW YIELD FOR A CENTURY ACCORDING TO MR SEIGEL OF MORGAN STANLEY AN INSTITUTIONAL INVESTOR APPROACHED HIS FIRM ABOUT A WEEK AGO WITH A REQUEST FOR 100YEAR CORPORATE BONDS APPARENTLY THE INVESTOR WHOM MR SEIGEL WOULDN'T IDENTIFY WANTED TO LENGTHEN THE AVERAGE MATURITY OF HIS HOLDINGS IN ORDER TO COUNTERBALANCE SHORTTERM HOLDINGS MORGAN STANLEY OFFERED TO FIND AN ISSUER FOR THE INVESTOR AND CAME UP WITH DISNEY IN BURBANK CALIF DISNEY OFFICIALS DECLINED TO COMMENT YESTERDAY ON THE BOND SALE INVESTORS BUYING A 100YEAR DISNEY ISSUE WILL NEED TO HAVE A LOT OF CONFIDENCE IN THE LONGEVITY OF MICKEY MOUSE SAID JOHN LONSKI SENIOR ECONOMIST AT MOODY'S INVESTORS SERVICE INC DISNEY'S FRENCH AFFILIATE EURO DISNEY RAN INTO DISAPPOINTING ATTENDANCE ALMOST FROM ITS OPENING THE BONDS ARE EXPECTED TO CARRY THE SAME RATINGS AS OTHER DISNEY LONGTERM DEBT ACCORDING TO MORGAN STANLEY OFFICIALS MOODY'S HAS RATED THAT DEBT DOUBLEA3 AND STANDARD & POOR'S HAS RATED IT DOUBLEAMINUS THE FIRST COMPANY TO BE FOUNDED IN WHAT HAS GROWN TO BE WALT DISNEY WAS DISNEY BROTHERS STUDIOS WHICH WAS FOUNDED IN OCTOBER 1923 OR 70 YEARS AGO ACCORDING TO A DISNEY SPOKESWOMAN THERE ARE A HANDFUL OF 100YEAR BONDS FROM OTHER COMPANIES STILL OUTSTANDING ACCORDING TO MR LONSKI OF MOODY'S MOST OF THEM CARRY COUPONS OF 5 OR LESS THE LAST 100YEAR ISSUE CAME IN 1954 FROM CHICAGO & EASTERN ILLINOIS A RAILROAD ACCORDING TO MORGAN STANLEY ACCORDING TO MOODY'S BOND RECORD A COMPENDIUM OF BONDS OUTSTANDING IN THE US THE CHICAGO & EASTERN ISSUE CARRIES A 5 COUPON AND ISN'T CALLABLE UNTIL MAY 1 2054 THIS MEANS THAT FOR MUCH OF THE LIFE OF THE BOND IT HAS YIELDED LESS THAN WHAT INVESTORS COULD HAVE FOUND AMONG NEWER ISSUERS ACCORDING TO AN ANALYSIS PREPARED BY MORGAN STANLEY AND SENT TO A NUMBER OF POTENTIAL INVESTORS IN THE DISNEY ISSUE YESTERDAY EVEN A SMALL MOVE UP IN INTEREST RATES OVER THE LIFE OF THE BOND COULD MEAN SIGNIFICANTLY LOWER RETURNS IT SAYS THAT IF LONGTERM YIELDS LIKE THAT OF THE 30YEAR TREASURY BOND WERE TO RISE ONE PERCENTAGE POINT INVESTORS IN THE DISNEY BOND WOULD HAVE A TOTAL RETURN OF NEGATIVE 419 OVER THE NEXT YEAR IF LONGTERM RATES WERE TO FALL ONE PERCENTAGE POINT HOWEVER THE RETURN WOULD BE NEARLY 23 THE ANALYSIS DOES NOT TAKE INFLATION INTO CONSIDERATION IN STATEMENTS TO A HOUSE BANKING SUBCOMMITTEE YESTERDAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THAT INVESTOR ENTHUSIASM FOR THE RECENT FLOOD OF NEW 50YEAR BONDS MAY BE READ AS ONE INDICATION THAT SOME INVESTORS ONCE AGAIN BELIEVE THAT INFLATIONARY PRESSURES WILL REMAIN SUBDUED BUT THE LONGER THE MATURITY THE MORE SUSCEPTIBLE A FIXEDINCOME BOND IS TO THE RAVAGES OF INFLATION TAKE A 90YEAR BOND ISSUED BY THE ATCHISON TOPEKA & SANTA FE RAILWAY IN 1908 THAT BOND CARRIES A COUPON OF 4 JUST BARELY ABOVE INFLATION NOW BUT FAR BELOW INFLATION FOR MUCH OF THE PAST TWO DECADES THE BONDS STILL EXIST BUT INVESTORS AREN'T EAGER TO OWN THEM TOUGH TALK ON INFLATION BY FED CHAIRMAN GREENSPAN AND JITTERS ABOUT THE OUTLOOK FOR DEFICIT REDUCTION LEFT US TREASURY NOTES AND BONDS POSTING LOSSES YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/8 POINT OR MORE THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 107 12/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 655 FROM 654 ON MONDAY TENYEAR TREASURY NOTES FARED EVEN WORSE AND DROPPED MORE THAN 1/4 POINT TO 103 24/32 TO YIELD 573 UP FROM 569 THE MARKET WAS HIT ON BOTH THE FISCAL AND MONETARY POLICY FRONTS AT THE SAME TIME THE THREAT OF AN ONSLAUGHT OF NEW CORPORATE DEBT ALSO HUNG OVER THE MARKET THE FIRST SHOT CAME FROM NEWS THAT REP DAN ROSTENKOWSKI D ILL THE POWERFUL CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE HAD BEEN LINKED TO AN EMBEZZLEMENT SCANDAL IN THE HOUSE POST OFFICE REP ROSTENKOWKSI HAS BEEN IN THE FOREFRONT OF FIGHTING FOR PRESIDENT CLINTON'S BUDGET PLAN WERE HE TO BE INDICTED THAT WOULD BE VIEWED AS A SERIOUS SETBACK IN THE PUSH FOR DEFICIT REDUCTION PEOPLE THOUGHT HE WAS GOING TO BE THE ONE TO SHEPHERD THE PRESIDENT'S PACKAGE THROUGH CONGRESS SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC THE NEWS OF THE CHICAGO DEMOCRAT'S TROUBLES MADE PEOPLE THINK THE PACKAGE WOULD BE IN SOME DEGREE OF JEOPARDY AND AS A RESULT THE MARKET WAS SOFT ON THE OPENING THE SECOND VOLLEY HIT AT MIDMORNING WHEN MR GREENSPAN APPEARED BEFORE A HOUSE BANKING SUBCOMMITTEE FOR HIS SEMIANNUAL HUMPHREYHAWKINS REPORT ON ECONOMIC CONDITIONS AND MONETARY POLICY MR GREENSPAN REFERRED TO THIS YEAR'S INFLATION NEWS AS DISAPPOINTING SAYING THAT THE INFLATION RATE HAS AT BEST STABILIZED HE ALSO TOOK A SOMEWHAT MORE OPTIMISTIC VIEW OF THE ECONOMY PREDICTING SECONDQUARTER GROSS DOMESTIC PRODUCT GROWTH OF OVER 25 AND GROWTH FOR THE REST OF THE YEAR IN EXCESS OF 3 FED WATCHERS AND TRADERS SAID MR GREENSPAN MADE IT CLEAR THE NEXT MOVE BY THE CENTRAL BANK WOULD BE TO RAISE RATES THE KEY IMPLICATION WAS THAT THE NEXT MOVE IS TOWARD A TIGHTENING AND NOT AN EASING SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC MEANWHILE TRADERS FOUND THEMSELVES CONFRONTING A DELUGE OF NEW CORPORATE ISSUANCE ESPECIALLY UNNERVING WERE EXPECTATIONS THAT THE TENESSEE VALLEY AUTHORITY WOULD PRICE 2 BILLION IN LONGTERM DEBT YESTERDAY WITH THE MARKET ON SHAKY GROUND DEALERS WERE QUICK TO HEDGE IN ANTICIPATION OF BEING SADDLED WITH THE TVA DEBT BUT IN THE END THE PRICING OF THE TVA DEAL WAS HELD OFF UNTIL TODAY AND SOME OF THOSE HEDGES WERE LIFTED PRICES OF MUNICIPAL BONDS ENDED 1/4 TO 1/2 POINT LOWER WHILE PARTICIPANTS CONTINUED TRIMMING INVENTORIES TO MAKE ROOM FOR HEAVY NEW ISSUANCE ABOUT 13 BILLION OF MUNI DEBT WAS PRICED INCLUDING A 775 MILLION NEW YORK CITY GENERAL OBLIGATION BOND OFFERING TRADERS DOUBT THERE WILL BE MUCH OF A LETUP IN THE PACE OF NEW ISSUANCE WITH INTEREST RATES HOVERING AROUND HISTORIC LOWS TODAY'S ISSUANCE LIKELY WILL BE AT LEAST DOUBLE YESTERDAY'S VOLUME TODAY'S EXPECTED DEALS INCLUDE 2 BILLION OF CALIFORNIA REVENUE ANTICIPATION NOTES THAT WILL BE PRICED BY A LEHMAN BROTHERS GROUP AND 750 MILLION OF PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY BONDS THAT WILL BE UNDEWRITTEN BY A PRYOR MCCLENDON COUNTS & CO GROUP THE 775 MILLION NEW YORK CITY FISCAL 1994 SERIES A GENERAL OBLIGATION BOND DEAL RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP WAS THE DAY'S BIGGEST AND WAS BOOSTED BY 100 MILLION FROM THE ORIGINALLY EXPECTED TOTAL SOME YIELDS WERE REDUCED BY 005 TO 010 PERCENTAGE POINT THE FINAL YIELD RANGE WAS FROM 365 IN 1995 TO 590 IN 2013 COMPARED WITH THE ORIGINAL RANGE BETWEEN 375 IN 1995 TO 590 IN 2013 PRICES OF MORTGAGE SECURITIES ENDED LOWER ON FED CHAIRMAN GREENSPAN'S INFLATION COMMENTS IN SECONDARY TRADING 65 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION COUPONS FOR AUGUST DELIVERY ENDED 9/32 LOWER AT 99 30/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ENDED 9/32 LOWER AT 99 23/32 FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ALSO ENDED 9/32 LOWER AT 99 19/32 THE 7 COUPONS FARED A LITTLE BETTER AMONG MORTGAGE ISSUES AS SOME DEALERS NEED THOSE SECURITIES TO BACK REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS FOR EXAMPLE FANNIE MAE 7 ISSUES FOR AUGUST DELIVERY FINISHED ONLY 6/32 LOWER AT 102 3/32 THE FALL IN TREASURYS FRAYED MORTGAGE BANKERS' NERVES AND THEY PROMPTLY SOLD MORTGAGE SECURITIES INTO THE SECONDARY MARKET AND RATES STILL HAVE A LONG WAY TO RISE BEFORE ERASING PREPAYMENT FEARS FROM THE MARKET ONLY ONE NEW REMIC WAS ANNOUNCED IT WAS A 155 MILLION OFFERING UNDERWRITTEN BY GREENWICH CAPITAL MARKETS INC AND BACKED BY PRINCIPALONLY STRIPS FROM FREDDIE MAC 8 SECURITIES THE USE OF POS AS REMIC COLLATERAL HAS BECOME MORE POPULAR DEAL MAKERS SAY THAT'S BECAUSE POS DO NICELY WHEN THE BROADER MORTGAGE MARKET IS HIT BY PREPAYMENTS POS ARE SOLD AT A DISCOUNT TO PAR YET PAY OFF AT PAR WHEN CALLED 9307210097 930721 WHO'S NEWS GAMBLING CHIEF QUITS ITT SHERATON AFTER FIVE MONTHS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL JOHN V GIOVENCO PRESIDENT AND OPERATING CHIEF OF ITT CORP'S ITT SHERATON HOTEL UNIT IS LEAVING ONLY FIVE MONTHS AFTER BEING HIRED TO SPEARHEAD ITT'S ENTRY INTO THE GAMBLING BUSINESS JOHN KAPIOLTAS ITT SHERATON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL REASSUME THE DUTIES OF PRESIDENT AND CHIEF OPERATING OFFICER WHICH HE RELINQUISHED TO MR GIOVENCO IN FEBRUARY MR KAPIOLTAS ATTRIBUTED MR GIOVENCO'S SUDDEN DEPARTURE TO IRRECONCILABLE DIFFERENCES IN MANAGEMENT PHILOSOPHY BUT SAID THE VETERAN CASINOINDUSTRY EXECUTIVE WAS PARTING ON GOOD TERMS ITT OFFICIALS DECLINED TO DISCUSS THE DEPARTURE AT LENGTH BUT MR GIOVENCO HAD BEEN HIRED WITH THE EXPECTATION THAT HE WOULD SUCCEED MR KAPIOLTAS 66 YEARS OLD UPON HIS RETIREMENT THE MOVE LEAVES THE BOSTON UNIT WITHOUT A SENIOR GAMBLING EXECUTIVE JUST AS THE COMPANY IS PLUNGING INTO THE LAS VEGAS CASINO MARKET AND BIDDING AGGRESSIVELY ON PROJECTS IN THE US AND INTERNATIONALLY IN A STATEMENT ITT CHAIRMAN AND CHIEF EXECUTIVE RAND ARASKOG SAID THE COMPANY'S PENDING 160 MILLION ACQUISITION OF THE DESERT INN HOTELCASINO IN LAS VEGAS FROM INVESTOR KIRK KERKORIAN IS UNAFFECTED BY THE DEPARTURE ITT SHERATON ALSO IS BIDDING ON RIVERBOAT PROJECTS IN THE US AND INTERNATIONAL CASINO VENTURES IN CANADA GREECE AUSTRALIA AND ELSEWHERE BEFORE JOINING ITT SHERATON MR GIOVENCO 57 HAD SPENT 21 YEARS AT HILTON HOTELS CORP BEVERLY HILLS CALIF MOST RECENTLY AS THE HEAD OF THE LODGING AND CASINO COMPANY'S SUCCESSFUL GAMBLING OPERATIONS IN A BRIEF CONVERSATION MR GIOVENCO SAID HE HAD SIGNED A CONTRACT IN WHICH HE HAD AGREED NOT TO DISCUSS HIS DEPARTURE THE ANNOUNCEMENT SURPRISED MANY IN LODGING AND GAMBLING CIRCLES BUT PERSONS CLOSE TO THE SITUATION SAID SOME HINTS OF THE ROCKY RELATIONS AROSE DURING THE DESERT INN NEGOTIATIONS IN WHICH MR GIOVENCO PLAYED ONLY A PERIPHERAL ROLE MR GIOVENCO IN TURN WAS SAID TO BE FRUSTRATED BY THE BUREAUCRACY AT A CORPORATION AS LARGE AS ITT WHICH WAS A SHARP CONTRAST WITH HILTON WHICH STILL RETAINS MANY OF THE ASPECTS OF A FAMILYCONTROLLED COMPANY MR GIOVENCO IS UNLIKELY TO RETURN TO HILTON WHICH NAMED A NEW PRESIDENT IMMEDIATELY AFTER MR GIOVENCO'S DEPARTURE AND HAS SINCE PROMOTED ANOTHER EXECUTIVE TO HEAD THE GAMBLING OPERATIONS HOWEVER INDUSTRY EXECUTIVES NOTED THAT CASINO MANAGEMENT TALENT IS IN GREAT DEMAND AS THE LEGAL GAMBLING INDUSTRY EXPLODES FASTER THAN MANAGERS CAN BE DEVELOPED ITT SHARES FELL 25 CENTS APIECE TO 8775 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9307210096 930721 ABREAST OF THE MARKET AVERAGES INCH UP ON ENTHUSIASM OVER SEVERAL FIRMS' EARNINGS DATA BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK AVERAGES FINISHED HIGHER AS INFLATION FEARS IN THE MORNING GAVE WAY TO ENTHUSIASM OVER SEVERAL EARNINGS REPORTS IN THE AFTERNOON THE DOW JONES INDUSTRIAL AVERAGE MOVED IN A WIDE 38POINT RANGE BEFORE ENDING WITH A GAIN OF 950 OR 027 AT 354478 JUST 10 POINTS BELOW ITS MAY 27 RECORD OF 355483 BROADER INDEXES ALSO ADVANCED BUT DECLINING ISSUES ON THE BIG BOARD OUTNUMBERED ADVANCERS 1064 TO 877 NEW YORK STOCK EXCHANGE VOLUME JUMPED TO 275120000 SHARES FROM 215850000 MONDAY THE SESSION BEGAN CALMLY BUT COMMENTS FROM FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN TOPPLED THE MARKET SHORTLY AFTER THE OPEN TESTIFYING BEFORE A HOUSE COMMITTEE THE FED CHIEF SAID HE WAS DISAPPOINTED WITH RECENT INFLATION REPORTS THAT SENT BOND PRICES REELING AND RAISED CONCERN THAT THE CENTRAL BANK WOULD BE FORCED TO TIGHTEN CREDIT THIS YEAR LOW INTEREST RATES HAVE BEEN ONE OF THE STRONGEST UNDERPINNINGS FOR THE STOCK MARKET FOR MONTHS THE INDUSTRIAL AVERAGE SKIDDED TO A LOSS OF 24 POINTS FOLLOWING THE GREENSPAN COMMENTS BUT THE AVERAGE QUICKLY REVERSED COURSE POWERED BY BIG GAINS IN SEVERAL COMPONENT STOCKS AFTER THE RELEASE OF EARNINGS NEWS SEARS ROEBUCK ROCKETED 4 1/8 TO 50 1/8 AND MERCK JUMPED 1 1/8 TO 33 1/4 SEARS HAD IMPROVED SECONDQUARTER EARNINGS AND MERCK POSTED HIGHER OPERATING EARNINGS TOGETHER GAINS IN THEIR SHARES ADDED 11 POINTS TO THE INDUSTRIAL AVERAGE THE STANDARD & POOR'S 500 STOCK INDEX ADDED 128 OR 029 TO 44731 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCREASED 038 OR 015 TO 24771 A MARSHALL ACUFF MARKET STRATEGIST AT SMITH BARNEY HARRIS UPHAM SAID THE MARKET WAS ALSO BUOYED BY A REBOUND IN SEVERAL STOCK GROUPS THAT HAVE BEEN DEPRESSED RECENTLY INCLUDING TECHNOLOGIES BUT MR ACUFF SAID HE DOESN'T EXPECT ANY MAJOR NEW GAINS IN THE MARKET UNTIL INVESTORS HEAR MORE GOOD NEWS ON EARNINGS WE NEED MORE OF THE SEARS TYPE OF REPORT IF YOU ARE GOING TO ENGENDER MORE CONFIDENCE IN BUYING STOCKS HE SAID BUT RALPH BLOCH MARKET STRATEGIST AT RAYMOND JAMES & ASSOCIATES SAID HE BELIEVES THE INDUSTRIAL AVERAGE IS POISED TO PUSH THROUGH ITS RECORD HIGH AND ONTO THE 3600TO3650 LEVEL HE WAS IMPRESSED BY THE MARKET'S QUICK TURNAROUND YESTERDAY MORNING PARTICULARLY IN THE AUTOMOBILE GROUP CHRYSLER CLOSED WITH A GAIN OF 1 5/8 TO 46 AFTER TUMBLING AS LOW AS 42 1/2 INTRADAY FORD MOTOR JUMPED 1 3/4 TO 53 1/4 WHILE GENERAL MOTORS CLIMBED 1 1/8 TO 48 7/8 SEARS SURGED AFTER THE COMPANY REPORTED EARNINGS FROM CONTINUING OPERATIONS OF 286 A SHARE WELL ABOVE THE 53 CENTS IT EARNED FROM CONTINUING OPERATIONS A YEAR EARLIER SHARES OF THE CHICAGO RETAILER'S ALLSTATE INSURANCE UNIT ADDED 1/4 TO 30 5/8 IT HAD SECONDQUARTER NET INCOME OF 94 CENTS A SHARE UP FROM 53 CENTS LAST YEAR MEANWHILE DEAN WITTER DISCOVER JUMPED 1 5/8 TO 38 THE COMPANY WHICH WAS A UNIT OF SEARS BEFORE AN INITIAL PUBLIC OFFERING AND SPINOFF THIS YEAR SAID ITS EARNINGS ROSE TO 92 CENTS A SHARE IN THE SECOND QUARTER FROM 57 CENTS A YEAR AGO MERCK BASED IN WHITEHOUSE STATION NJ HAD SECONDQUARTER EARNINGS FROM OPERATIONS OF 61 CENTS A SHARE COMPARED WITH NET INCOME OF 56 CENTS A YEAR AGO OTHER DRUG STOCKS RALLIED FOLLOWING MERCK'S NEWS AND AIDED BY A RATINGS UPGRADE BY WERTHEIM SCHRODER ANALYST JONATHAN GELLES THE ANALYST ONE OF THE FIRST OBSERVERS TO BECOME CAUTIOUS ABOUT THE GROUP BEFORE ITS TROUBLES THIS YEAR RAISED HIS OPINION ON THE SEGMENT TO ATTRACTIVE FROM NEUTRAL SOURCES SAID HE BELIEVES THE BEARISHNESS MAY BE OVERDONE BRISTOLMYERS SQUIBB JUMPED 7/8 TO 58 1/8 PFIZER ADDED 1/2 TO 63 1/2 AMERICAN HOME PRODUCTS GAINED 1 1/4 TO 64 1/8 BAXTER INTERNATIONAL ADVANCED 3/4 TO 27 5/8 SMITHKLINE BEECHAM ADDED 1/2 TO 27 7/8 AND ELI LILLY JUMPED 2 1/8 TO 48 1/2 BAXTER AND SMITHKLINE BOTH RELEASED IMPROVED SECONDQUARTER EARNINGS SEPARATELY A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL AGREED THAT LILLY'S PROZAC DRUG IS EFFECTIVE IN TREATING OBSESSIVECOMPULSIVE DISORDERS WELLS FARGO JUMPED 2 TO 109 1/4 THE SAN FRANCISCO BANK'S SECONDQUARTER NET INCOME LEAPT TO 246 A SHARE FROM 133 A YEAR AGO ITS PROVISION FOR LOAN LOSSES WAS SLASHED IN THE PERIOD TO 140 MILLION FROM 300 MILLION SEVERAL OTHER BIG BANK STOCKS EASED THOUGH DESPITE POSTING HIGHERTHANEXPECTED EARNINGS CITICORP SLIPPED 1/4 TO 31 3/4 MELLON BANK FELL 1/2 TO 55 3/4 AND NATIONSBANK DROPPED 7/8 TO 49 PHILIP MORRIS ADDED 3/8 TO 48 1/2 THE NEW YORK COMPANY MADE PERMANENT ITS PRICE CUTS ON MARLBORO CIGARETTES TRIMMED PRICES ON ITS OTHER PREMIUM BRANDS AND RAISED PRICES ON ITS DISCOUNT LABELS SEPARATELY IT POSTED SECONDQUARTER NET INCOME OF 120 A SHARE COMPARED WITH 148 A YEAR EARLIER SPRINT JUMPED 1 1/4 TO 35 AFTER THE KANSAS CITY MO TELEPHONE SERVICE PROVIDER REPORTED EARNINGS OF 46 CENTS A SHARE UP FROM 44 CENTS LAST YEAR THE LATEST PERIOD INCLUDES A TWOCENTASHARE CHARGE THE YEARAGO FIGURE WAS AFTER A 13CENT GAIN INTERNATIONAL GAME TECHNOLOGY FELL 1 3/4 TO 34 7/8 EVEN THOUGH THE RENO NEV GAMBLING PRODUCTS CONCERN POSTED HIGHERTHANEXPECTED EARNINGS OF 24 CENTS A SHARE FOR THE THIRD QUARTER ENDED LAST MONTH A YEAR AGO IT HAD A PROFIT OF 17 CENTS MCDONNELL DOUGLAS SURGED 5 5/8 TO 80 7/8 IT JUMPED 3 1/4 MONDAY AFTER POSTING BETTERTHANEXPECTED EARNINGS ON MONDAY THE STOCK WAS UPGRADED BY ANALYSTS AT MORGAN STANLEY AND COWEN & CO UNISYS THE MOSTACTIVE BIG BOARD ISSUE FELL AGAIN DESPITE MONDAY'S BETTERTHANEXPECTED SECONDQUARTER EARNINGS SHARES OF THE BLUE BELL PA COMPUTER CONCERN LOST 5/8 TO 10 3/4 ON VOLUME OF 44 MILLION SHARES MONDAY IT LOST 1/4 9307210095 930721 REVIEW & OUTLOOK EDITORIAL CORRUPTION OF TENURE EVER SINCE THE HOUSE BANK AND POST OFFICE SCANDALS BROKE IN 1991 HOUSE LEADERS HAVE ASSURED THE PUBLIC THAT THE MEMBERS INVOLVED COMMITTED ONLY ERRORS IN JUDGMENT NOW FORMER HOUSE POSTMASTER ROBERT ROTA HAS SUDDENLY PLEADED GUILTY TO EMBEZZLEMENT CHARGES AND AGREED TO TESTIFY ABOUT AN ALLEGED 20YEAR CONSPIRACY HE RAN TO HELP KEY CONGRESSMEN PILFER PUBLIC MONEY IT'S NOT KNOWN HOW MANY MEMBERS BENEFITED FROM MR ROTA'S SCHEME WHICH INVOLVED CONVERTING POSTAGE STAMPS MEANT FOR PUBLIC USE INTO CASH FOR THE LAWMAKERS HOWEVER THE TWO MAIN FIGURES NAMED BY MR ROTA APPEAR TO BE FORMER REP JOE KOLTER AND WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI SHOULD MR ROSTENKOWSKI BE INDICTED HE'D HAVE TO STEP DOWN AS LEADER OF THE GIGANTIC HOUSE CONFERENCE DELEGATION WORKING ON THE CLINTON TAX BILL THAT PROSPECT MAKES THE HOUSE LEADERSHIP NERVOUS HIS REPLACEMENT WOULD BE REP SAM GIBBONS OF FLORIDA AN INDEPENDENT THINKER MR GIBBONS WALKED OUT OF THE FIRST CONFERENCE COMMITTEE MEETING LAST WEEK AFTER MUTTERING THIS IS POLITICAL BS MORE BROADLY THOUGH THE ROSTENKOWSKI NEWS REVIVES DEEPER WORRIES ABOUT THE INSTITUTION OF THE HOUSE IT HAS LURCHED FROM ONE SCANDAL TO ANOTHER BEGINNING WITH THE DOWNFALLS OF JIM WRIGHT AND TONY COELHO IN 1989 EACH TIME IT DENIED THAT ANY BREACH OF TRUST OCCURRED ONLY TO BE PROVEN WRONG MONTHS LATER NOW THIS ALMOST EXACTLY A YEAR AGO THE HOUSE ADMINISTRATION COMMITTEE ISSUED A REPORT ON THE POST OFFICE SCANDAL THAT HAD THE LOOK OF A WHITEWASH THOUGH EIGHT PATRONAGE EMPLOYEES PLEADED GUILTY TO DRUG OR EMBEZZLEMENT CHARGES DEMOCRATS INSISTED THAT NO MEMBERS WERE INVOLVED REP CHARLES ROSE THE COMMITTEE'S CHAIRMAN SAID THERE WAS NO CREDIBLE EVIDENCE AGAINST ANY MEMBER AND DECLARED THE POST OFFICE AND ITS PROBLEMS ARE BEHIND US WE SUPPOSE IT WILL TAKE A NOVELIST OF DICKENSIAN SKILLS TO EVER GET AT WHAT IS GOING ON IN THE MINDS OF THESE POLITICIANS THE ALLEGATIONS AGAINST MR ROSTENKOWSKI AFTER ALL INVOLVE A MERE 21300 A RECENT REPORT IN THE CONGRESSIONAL QUARTERLY HOWEVER DESCRIBED IN DETAIL HOW MR ROSTENKOWSKI HAS SUPPORTED A HIGHCLASS LIFESTYLE ON A 130000 SALARY BY HAVING LOBBYISTS CONTRIBUTORS AND TAXPAYERS SUBSIDIZE HIM THE SON OF A POWERFUL CHICAGO WARD BOSS HE HAS SEEMINGLY NEVER RECOGNIZED A CONTRADICTION BETWEEN PUBLIC OFFICE AND THE PRIVATE PRIVILEGE DERIVED FROM IT A PARTIAL SOLUTION TO ALL THIS WOULD BE TO INJECT SOME FRESH BLOOD INTO THE US POLITICAL SYSTEM ALONG THESE LINES FRESHMAN SENATOR LAUCH FAIRCLOTH OF NORTH CAROLINA IS TALKING UP THE IDEA OF MINIMIZING THE NUMBER OF LIFETIME OFFICEHOLDERS BY IMPOSING FEDERAL TERM LIMITS PEOPLE WITH SUCCESSFUL CAREERS MIGHT THEN BE MORE WILLING TO RUN FOR OFFICE AND LIVE ON A CONGRESSMAN'S SALARY KNOWING THEY'D HAVE TO RETURN TO THE PRIVATE SECTOR OR SEEK HIGHER OFFICE AFTER A SET TERM POLITICAL OFFICE WOULD BE MORE OF A CIVIC DUTY THAN JUST ANOTHER WAY SOME PEOPLE MAKE MONEY FROM JAPAN TO ITALY TO BRAZIL THERE IS A WORLDWIDE REVOLT UNDER WAY AGAINST ENTRENCHED POLITICIANS PEOPLE NOW VIEW A POLITICAL CLASS WITH EFFECTIVE TENURE AS PART OF THE PROBLEM NOT THE SOLUTION THE RETURN OF THE HOUSE POST OFFICE SCANDAL SUGGESTS THAT THE WINDS OF CHANGE MAY BE PICKING UP FORCE IN THIS COUNTRY AS WELL 9307210094 930714 INTERNATIONAL GERMAN HEARING MAY TURN INTO GM LOPEZ SHOWDOWN HAMBURG GERMANY GENERAL MOTORS CORP HOPES TO TURN AN UNUSUAL GERMAN CIVIL COURT PROCEEDING TOMORROW INTO A SHOWDOWN IN ITS DISPUTE WITH FORMER GM PURCHASING MANAGER J IGNACIO LOPEZ DE ARRIORTUA NOW VOLKSWAGEN AG'S PRODUCTION CHIEF THE HEARING ISN'T RELATED TO A CRIMINAL INVESTIGATION OVER ALLEGEDLY STOLEN DOCUMENTS THAT IS BEING CONDUCTED BY GERMAN AUTHORITIES RATHER IT HAS TO DO WITH A DISPUTE BETWEEN VW AND DER SPIEGEL THE GERMAN NEWS MAGAZINE OVER AN ARTICLE THE MAGAZINE PUBLISHED IN MAY CHARGING THAT SPIEGEL PUBLISHED FALSE AND DEFAMATORY STATEMENTS ABOUT MR LOPEZ VW OBTAINED A COURT ORDER BARRING THE MAGAZINE FROM WRITING ARTICLES SUGGESTING THAT MR LOPEZ TOOK ANY SECRET DOCUMENTS FROM GM IN AN EFFORT TO GET THE COURT ORDER LIFTED SPIEGEL HAS RECRUITED GM AS AN ALLY THE MAGAZINE SAYS IT IS PREPARED TO BRING FORTH 22 WITNESSES MOST OF THEM GM EMPLOYEES WHO ARE WILLING TO OFFER TESTIMONY BACKING UP SPIEGEL'S STORY THE HEARING THUS COULD TURN INTO THE FIRST PUBLIC AIRING OF GM'S CASE AGAINST MR LOPEZ VW DECLINED TO COMMENT ON THE HEARING BUT PRESS OFFICERS SAID THEY DOUBTED THAT MR LOPEZ OR ANY PROMINENT VW OFFICIAL WOULD ATTEND MR LOPEZ HAS DENIED REPEATEDLY THAT HE TOOK CONFIDENTIAL GM INFORMATION WITH HIM TO VW 9307210093 930721 BOARD OF CONTRIBUTORS BETTER TIMES AHEAD BY PAUL W MCCRACKEN IF RECOGNIZING THAT THERE IS A PROBLEM IS THE BEGINNING OF A SOLUTION THE INDUSTRIAL ECONOMIES MAY FINALLY BE HEADED FOR BETTER TIMES IN DECEMBER THE HEADS OF THE EUROPEAN COMMUNITY AND IN EARLY JULY THE GROUP OF SEVEN IN TOKYO FINALLY STARTED TO FOCUS ON AN URGENT NEED GETTING THE OPERATING RATE AND EMPLOYMENT LEVELS OF THEIR ECONOMIES MOVED UP THE FACT IS THAT FOR SOME YEARS THE ECONOMIC PERFORMANCE IN EUROPE AND TO SOME EXTENT IN NORTH AMERICA HAS BEEN POOR THE WORST SINCE THE DEPRESSION IN MUCH OF EUROPE THE UNEMPLOYMENT RATE HAS BEEN IN THE 10 ZONE AND EDGING UPWARD FOR THE US 7 SEEMS TO BE THE LEVEL FROM WHICH WE HAVE BEEN UNABLE TO ESCAPE IN SHORT AFTER DEVOTING OURSELVES TO HIGH EMPLOYMENT FOR MUCH OF THIS CENTURY MAXIMUM EMPLOYMENT PRODUCTION AND PURCHASING POWER IN THE WORDS OF THE EMPLOYMENT ACT OF 1946 WE MAY WELL SEE A HIGHER RATE OF UNEMPLOYMENT IN THE FINAL DECADE THAN WE DID IN THE FIRST 45 AND DURING THAT FIRST DECADE THE AMERICAN ECONOMY HAD TO ENLARGE JOB OPPORTUNITIES AT AN EXCEPTIONALLY RAPID PACE BECAUSE OF THE HUGE INCREASE IN THE LABOR FORCE FOR CANADA THE PERFORMANCE OF RECENT YEARS HAS ALSO BEEN POOR THE COUNTRY'S UNEMPLOYMENT RATE IS NOW BUMPING ALONG AT 10 WELL ABOVE ANYTHING THAT EARLIER WOULD HAVE BEEN CONSIDERED AN ACCEPTABLE RATE AND THE RECORD IN EUROPE IS EVEN WORSE IN ALL FOUR OF THE MAJOR ECONOMIES THE UNEMPLOYMENT RATE IS NOW IN THE 10 TO 11 RANGE AND THE OECD PROJECTS A FURTHER INCREASE FOR NEXT YEAR IN GERMANY ITALY AND FRANCE AND ONLY A SMALL IMPROVEMENT IN BRITAIN WHAT HAVE BEEN THE BASIC PROBLEMS OF ECONOMIC POLICY PRODUCING THESE HIGH AND PERSISTING LEVELS OF UNEMPLOYMENT AND DISAPPOINTING GAINS IN REAL INCOMES FOR ONE THING THERE SEEMS TO BE A TENDENCY FOR MANAGERS OF ECONOMIC POLICY LIKE GENERALS TO FIGHT THE LAST WAR THE US IS AN ILLUSTRATION IN THE 1970S PARTICULARLY THE LAST HALF OF THAT DECADE THERE WAS SUCH A FOCUS ON AVOIDING ANY RISE IN UNEMPLOYMENT THAT ECONOMIC POLICIES CAME CLOSE TO PUSHING THE ECONOMY INTO A SPIRALING INFLATION THE RATE OF INFLATION WAS ITSELF RISING AND BY 1980 THE CONSUMER PRICE INDEX ROSE 135 IN FACT THE PRICE LEVEL BY THE EARLY MONTHS OF 1980 WAS RISING AT A RATE OF 18 A YEAR A PACE THAT WOULD REDUCE THE PURCHASING POWER OF A DOLLAR BY 50 EVERY FOUR YEARS BELATEDLY THE PRICE LEVEL GOT SOME ATTENTION BUT DRACONIAN MEASURES GIVING US SHARPLY HIGHER INTEREST RATES AND IN 1982 THE HIGHEST RATES OF UNEMPLOYMENT IN 40 YEARS WERE REQUIRED TO RESTORE BALANCE IN RECENT YEARS WE HAVE SEEN THE OTHER SIDE OF THIS UNBALANCED VIEW OF ECONOMIC POLICY UNTIL QUITE RECENTLY THE RHETORIC OF THOSE MANAGING ECONOMIC POLICY WOULD SUGGEST THAT THERE WAS AGAIN ONLY ONE WORTHY OBJECTIVE OF ECONOMIC POLICY RESTRAINING ANY INCREASE IN THE PRICE LEVEL THE RATE OF UPWARD DRIFT IN THE PRICE LEVEL FOR SEVERAL YEARS NOW HAS BEEN HIGHER THAN IN OUR EARLIER HISTORY DURING THE QUARTER OF A CENTURY FOLLOWING WORLD WAR II 194873 THE CONSUMER PRICE INDEX DRIFTED UPWARD AT A YEARLY RATE OF 25 ABOUT THE SAME AS THE RATE THAT PREVAILED IN 190029 DURING THE LAST DECADE THE PRICE LEVEL HAS MOVED UPWARD AT A YEARLY RATE OF 38 AND IT SEEMS NOW TO HAVE SETTLED INTO A 3 TO 35 ZONE AN EVEN LOWER RATE OTHER THINGS BEING EQUAL WOULD BE BETTER BUT IT IS A MAJOR IMPROVEMENT OVER THE 84 RATE OF THE PRIOR DECADE 197383 EUROPE HAS HAD ITS FIXATION PROBLEMS ALSO THERE THE FERVOR FOR FIXING EXCHANGE RATES AND HAVING ONE MONETARY POLICY HAS ADDED TO THE UNEMPLOYMENT PROBLEM THE MONETARY POLICY APPROPRIATE FOR GERMANY WITH ITS UNCOMFORTABLY HIGH RATE OF INFLATION WAS NOT APPROPRIATE FOR OTHER COUNTRIES SUCH A POLICY LEFT THEM STRANDED WITH HIGH RATES OF UNEMPLOYMENT THE HISTORY OF TYING EXCHANGE RATES TOGETHER SHOULD HAVE BEEN ENOUGH TO WARN THE EC THAT SUCH A POLICY IS NOT A WISE IDEA UNTIL PEOPLE ARE READY TO SURRENDER NATIONAL SOVEREIGNTY AT LEAST WHEN IT COMES TO ECONOMIC POLICY IN ANY CASE THIS TUNNEL VISION FOCUSING ON SQUEEZING DOWN FURTHER A RATE OF INFLATION OR TRYING TO IMPOSE A UNIFIED MONETARY POLICY HAS LEFT THE INDUSTRIAL WORLD WITH THE HUGE PROBLEM OF UNEMPLOYMENT IN ITS WORLD ECONOMIC OUTLOOK FOR THIS YEAR THE INTERNATIONAL MONETARY FUND PROJECTS AN INCREASE IN OUTPUT FOR INDUSTRIAL ECONOMICS OF 17 THIS YEAR AND 29 IN 1994 AND THESE ASSUME A 32 INCREASE THIS YEAR FOR THE US AND CANADA PROJECTIONS THAT NOW LOOK OVERLY OPTIMISTIC EVEN IF THESE PROJECTIONS FOR OUTPUT ARE REALIZED THE INDUSTRIAL COUNTRIES WILL ALMOST CERTAINLY FIND THEMSELVES AT THE END OF THE YEAR AND AGAIN AT THE END OF 1994 WITH HIGHER UNEMPLOYMENT AT THE VERY LEAST THEY WILL HAVE MADE NO PROGRESS IN REGAINING A REASONABLY FULL USE OF THEIR LABOR FORCE AND OTHER PRODUCTIVE RESOURCES AT TIMES WHEN THE ECONOMY IS NOT PERFORMING WELL ANALYSTS AND POLICY MAKERS USUALLY RESORT TO THE VIEW THAT THE PROBLEM IS STRUCTURAL SOMEHOW THE ECONOMIES HAVE GONE THROUGH A MIDLIFE CRISIS AND ARE NO LONGER ABLE TO GIVE BIRTH TO PROSPERITY FROM THE TOKYO SUMMIT CAME A REPORT PONDERING THE APPARENT INABILITY OF CAPITALIST ECONOMIES TO CREATE NEW JOBS IN FACT THERE IS NOTHING WRONG WITH THE ABILITY OF CAPITALIST OR MORE DESCRIPTIVELY LIBERAL MARKETORGANIZEDECONOMIES TO CREATE JOBS AND DELIVER RISING REAL INCOMES UNLESS THE PROCESS IS THWARTED BY THE INAPPROPRIATE ECONOMIC POLICIES OF GOVERNMENTS DURING THE DEPRESSION THERE WAS A PERVASIVE VIEW THAT THE ECONOMY HAD MATURED AND COULD NO LONGER BE EXPECTED TO GENERATE GROWTH THREE DECADES AGO WE BEGAN THE 1960S WITH HIGH UNEMPLOYMENT AND AGAIN THERE WERE SOMBER JUDGMENTS THAT THIS TIME THE HIGH UNEMPLOYMENT WAS STRUCTURAL THERE ARE OF COURSE STRUCTURAL PROBLEMS INHIBITING ECONOMIC PROGRESS MANY ECONOMIES COULD MAKE A MAJOR STEP FORWARD BY MOVING SOME ACTIVITIES FROM THE PUBLIC SECTOR TO THE PRIVATE WHERE COMPETITION WOULD FORCE A SHAPING UPEG THE US POSTAL SERVICE OR GOVERNMENT PRINTING OFFICE OR IN MANY CITIES TRASH COLLECTION THE FURTHER INTERNATIONALIZATION OF MARKETS BY REMOVING BARRIERS TO TRADE WOULD IMPROVE THE STRUCTURE AND STRENGTH OF ECONOMIES AND RAISE REAL INCOMES THE US IN 1993 WILL PROBABLY BUILD FURTHER STRUCTURAL IMPEDIMENTS THROUGH A TAX INCREASE THAT WILL GREATLY REDUCE THE INCENTIVES AND CAPACITY TO EXPAND EMPLOYMENT AND OUTPUT FOCUSING ON STRUCTURAL PROBLEMS HOWEVER WILL NOT SOLVE THE UNEMPLOYMENT PROBLEM OF THE INDUSTRIAL ECONOMIES BECAUSE THEY ARE NOT ITS CAUSE WHAT THE INDUSTRIAL ECONOMIES NEED TODAY IS QUITE SIMPLY A HIGHER LEVEL OF DEMAND FOR OUTPUT AND WE KNOW HOW TO DO THAT WE DO IT BY PURSUING MORE EXPANSIONIST MACROECONOMIC POLICIES IN SPITE OF THOSE STRUCTURAL WORRIES THREE DECADES AGO THE US ECONOMY BY THE MID1960S HAD REGAINED REASONABLY FULL EMPLOYMENT BECAUSE OUR BASIC ECONOMIC POLICIES LARGELY MONETARY POLICIES WERE NUDGING ALONG A RISING DEMAND FOR OUTPUT EXPANSIONIST ECONOMIC POLICIES ALSO PLAYED A KEY ROLE IN PULLING EUROPE OUT OF ITS CASE OF EUROSCLEROSIS CONVERSELY THERE IS NO MYSTERY ABOUT THE UNSATISFACTORY CURRENT PERFORMANCE OF THE US ECONOMY THE PROBLEM IS THE BASIC MACROPOLICIES WE HAVE BEEN PURSUING OUR MONETARY POLICIES HAVE SO LIMITED THE EXPANSION OF THE MONEY SUPPLY THAT WE HAVE HAD A SHRINKING MONEY STOCK IN REAL TERMS THE ANEMIC PACE OF THE RECOVERY FROM THE 199091 RECESSION IS NOT THEREFORE SURPRISING WE GOT THE ECONOMIC PERFORMANCE THAT WAS TO BE EXPECTED FROM THE POLICIES WE PURSUED IF WE DO NOT GET THE MORE EXPANSIVE ECONOMIC POLICIES NEEDED TO INDUCE A MORE RAPIDLY RISING PRIVATE DEMAND FOR OUTPUT WE MUST EXPECT MOUNTING PRESSURE FOR MORE DIRECTACTION PROGRAMS BY GOVERNMENT IN THE LONG RUN THEY WOULD NOT SOLVE THE UNEMPLOYMENT PROBLEM BUT THEY WOULD MAKE A MAJOR CONTRIBUTION TO THE BAD BUDGETS AND STRUCTURAL RIGIDITIES THAT WOULD AGAIN POSE A THREAT TO BOTH PERSONAL FREEDOM AND ECONOMIC PROGRESS MR MCCRACKEN A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A UNIVERSITY OF MICHIGAN PROFESSOR EMERITUS 9307210092 930721 INTERNATIONAL TELEFONICA IN LINK WITH MOROCCO MADRID SPAIN'S TELECOMMUNICATIONS COMPANY TELEFONICA SIGNED A PACT WITH ITS MOROCCAN COUNTERPART TO LAY AN UNDERWATER FIBER OPTIC CABLE LINKING MAINLAND SPAIN WITH THE NORTH AFRICAN NATION THE SPANISH COMPANY SAID TELEFONICA SAID THE COMMUNICATIONS CABLE STRETCHING 110 KILOMETERS 682 MILES BETWEEN THE SOUTHWESTERN SPANISH TOWN OF ESTEPONA AND THE NORTHEASTERN MOROCCAN CITY OF TETUAN IS SCHEDULED TO BEGIN OPERATING NEXT MAY THE 11 BILLIONPESETA COST 82 MILLION OF THE LINK WILL BE SHARED BY TELEFONICA AND MOROCCO'S ONPT 9307210090 930721 PETROLEUM HEAT & POWER PACT STAMFORD CONN PETROLEUM HEAT & POWER CO SAID IT SIGNED A LETTER OF INTENT TO BUY A 25 INTEREST IN STAR GAS CO TO JOIN OTHERS IN INVESTING 30 MILLION IN THE PROPANE DISTRIBUTION COMPANY AND TO BEGIN MANAGING IT THE PURCHASE PRICE OF THE STAKE WASN'T DISCLOSED PETROLEUM HEAT & POWER A DISTRIBUTOR OF HOME HEATING OIL WILL ACQUIRE THE STAR GAS STAKE FROM A UNIT OF BROOKLYN UNION GAS CO IT SAID THE ACQUISITION WOULD ALLOW IT TO EXPAND ITS PRESENCE IN THE PROPANE GAS MARKET STAR GAS MOUNT LAUREL NJ HAS ANNUAL SALES OF ABOUT 140 MILLION 9307210089 930721 INTERNATIONAL HOUSE OF FRASER DEPARTMENT STORES EXCEPT HARRODS TO BE SOLD TO PUBLIC BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AFTER ONE OF THE NASTIEST TAKEOVER BATTLES OF THE 1980S TO ACQUIRE THE HOUSE OF FRASER DEPARTMENT STORE EMPIRE THE ALFAYED FAMILY OF EGYPT IS PLANNING TO SELL THE STORES EXCEPT FOR THE FLAGSHIP HARRODS IN A PUBLIC OFFERING A SPOKESMAN FOR THE ALFAYED BROTHERS MOHAMED AND ALI SAID THE FAMILY WILL HAVE NO FINANCIAL INTEREST IN THE OTHER STORES AFTER THE OFFERING EXPECTED TO REAP 350 MILLION 52448 MILLION TO 550 MILLION THE OFFERING WILL BE BETWEEN MARCH AND JULY 1994 THE SPOKESMAN SAID THE ALFAYEDS HAVE DECIDED TO KEEP HARRODS BECAUSE THEY HAVE A PARTICULAR FONDNESS FOR IT AND CONSIDER IT A NATIONAL TREASURE THE SPOKESMAN SAID THE ALFAYED BROTHERS WAGED A FIERCE AND COSTLY BATTLE WITH LONRHO PLC CHAIRMAN ROLAND TINY ROWLAND THEIR FORMER BUSINESS ALLY FOR CONTROL OF HARRODS AND OTHER STORES INCLUDING ARMY & NAVY DICKENS & JONES AND DH EVANS BOTH SIDES ACCUSED THE OTHER OF DIRTY TRICKS CULMINATING IN A 16PAGE SPECIAL SECTION IN THE LONRHOOWNED OBSERVER NEWSPAPER THAT CONTAINED LENGTHY EXTRACTS PURPORTEDLY FROM A CONFIDENTIAL GOVERNMENT REPORT HIGHLY CRITICAL OF THE ALFAYED BROTHERS A LONRHO SPOKESWOMAN SAID THE COMPANY HAD NO COMMENT ON THE FRASER PUBLIC OFFERING OR ON WHETHER IT WOULD SEEK A FINANCIAL INTEREST IN THE RETAIL GROUP IF THE OFFERING APPROACHES THE HIGHER END OF THE ESTIMATES THE AMOUNT WOULD BE ENOUGH TO WIPE OUT THE DEBT FROM THE ALFAYEDS' 1985 TAKEOVER OF THE COMPANY A FAMILY SPOKESMAN SAID AS WELL AS PROVIDE INVESTMENT FUNDS FOR HARRODS AND POSSIBLE ACQUISITIONS THE SPOKESMAN FOR THE ALFAYEDS SAID THE BROTHERS DECIDED TO SELL BECAUSE THEY BELIEVE THEY CAN ATTRACT PUBLIC INVESTORS AND RECOUP SOME OF THEIR ORIGINAL 573 MILLION INVESTMENT NOW THAT BRITAIN'S ECONOMY SLOWLY IS IMPROVING AND STORE PROFITS ARE INCREASING THE STORE GROUP EARNED 36 MILLION IN THE YEAR ENDED IN JANUARY COMPARED WITH 21 MILLION IN THE PREVIOUS YEAR THE 59 STORES TO BE SOLD TO THE PUBLIC GENERATE ABOUT 700 MILLION IN SALES ANNUALLY THE SPOKESMAN SAID HOWEVER HARRODS REMAINS THE CROWN JEWEL TAKING IN ABOUT 1 MILLION DAILY THE FAMILY ALSO OWNS THE RITZ HOTEL IN PARIS THOUGH THE ALFAYEDS PLAN TO RELINQUISH FINANCIAL CONTROL THE BROTHERS' HANDPICKED SUCCESSOR WILL RUN THE COMPANY AFTER IT BECOMES PUBLIC THE TWO TOP OFFICERS OF THE DEPARTMENT STORES GROUP WILL REMAIN IN THEIR POSTS 9307210088 930721 BUSINESS BRIEF VF CORP APPAREL FIRM POSTS 21 RISE IN SECONDQUARTER EARNINGS VF CORP BOLSTERED BY DOUBLEDIGIT SALES INCREASES IN EACH OF ITS FIVE DIVISIONS REPORTED A 21 INCREASE IN SECONDQUARTER EARNINGS FOR THE QUARTER ENDED JULY 3 THE WYOMISSING PA APPAREL CONCERN REPORTED NET INCOME OF 557 MILLION OR 85 CENTS A SHARE UP FROM 462 MILLION OR 77 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 24 TO 105 BILLION VF WHICH MAKES WRANGLER LEE AND GIRBAUD JEANSWEAR AS WELL AS JANTZEN AND JANSPORT SPORTSWEAR SAID SALES OF JEANSWEAR ROSE 18 WHILE SALES OF ITS CASUAL SPORTSWEAR INCREASED 19 9307210087 930721 LETTERS TO THE EDITOR CFCS DIFFUSE UPWARD A JUNE 24 LETTER HOW THOSE CFCS GET WAY UP THERE DISPUTES THE ASSERTION IN A MAY 7 LETTER THAT CFCS CAN'T REACH THE STRATOSPHERE BECAUSE THEY ARE HEAVIER THAN AIR BUT IT DOES SO INCORRECTLY THE TRUE EXPLANATION OF HOW THE CFCS RISE IS NOT ATMOSPHERIC MIXING TURBULENCE WHICH VARIES WIDELY FROM PLACE TO PLACE ANY GOOD ENCYCLOPEDIA OR ELEMENTARY PHYSICS TEXTBOOK DESCRIBES THE CORRECT EXPLANATION THE PHENOMENON KNOWN AS DIFFUSION WHEREBY ANY MIXTURE OF GASES EVEN OF VARYING WEIGHTS WILL GIVEN TIME EVOLVE INTO A HOMOGENEOUS MIXTURE FOR EXAMPLE DIFFUSION IS RESPONSIBLE FOR OUR ATMOSPHERE'S BEING A HOMOGENEOUS MIXTURE OF OXYGEN AND NITROGEN RATHER THAN A SURFACE LAYER OF OXYGEN OVERLAID BY A THICKER LAYER OF LIGHTER NITROGEN 9307210086 930721 BUSINESS BRIEF CONSOLIDATED FREIGHTWAYS INC NET OF 36 MILLION IS POSTED FOR SECOND PERIOD VS A LOSS CONSOLIDATED FREIGHTWAYS INC PALO ALTO CALIF SAID IMPROVEMENTS IN ITS TRUCKING AND AIRFREIGHT OPERATIONS FUELED SECONDQUARTER NET INCOME OF 36 MILLION OR 10 CENTS A SHARE THIS COMPARES WITH A LOSS OF 25 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER THE FREIGHT TRANSPORTATION COMPANY SAID REVENUE GREW SLIGHTLY TO 102 BILLION FROM 1 BILLION IT WAS THE THIRD CONSECUTIVE QUARTER OF PROFITABILITY SINCE THE COMPANY'S TURNAROUND SIX QUARTERS AGO CONSOLIDATED FREIGHTWAYS FELL 50 CENTS TO 15375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9307210085 930721 SMALL BROKERAGE FIRMS POST JUMP IN PROFITS FOR LATEST QUARTER SPARKED BY INTENSE MARKET ACTIVITY NET INCOME AND REVENUE AT SMALL REGIONAL BROKERAGE FIRMS JUMPED IN THE QUARTER ENDED JUNE 30 INTERREGIONAL FINANCIAL GROUP INC OF MINNEAPOLIS THE PARENT COMPANY OF DAIN BOSWORTH INC OF MINNEAPOLIS AND RAUSCHER PIERCE RESNER INC OF DALLAS REPORTED RECORD REVENUE AND NET INCOME FOR THE SECOND QUARTER THE COMPANY HAD A 21 INCREASE IN NET INCOME AND AN 18 RISE IN REVENUE FROM A YEAR EARLIER WHICH IT ATTRIBUTED TO A FAVORABLE MARKET FOR STOCKS AND BONDS EVERY AREA OF OUR BUSINESS PROSPERED THE COMPANY SAID RAYMOND JAMES FINANCIAL INC ST PETERSBURG FLA HAD A RECORD 25 INCREASE IN REVENUE IN THE QUARTER FUELED BY A 39 INCREASE IN SECURITIES COMMISSIONS AND A REMARKABLE LEVEL OF INVESTMENT BANKING TRANSACTIONS SAID THOMAS JAMES CHAIRMAN INTERSTATE/JOHNSON LANE INC CHARLOTTE NC SAID REVENUE JUMPED 22 ITS RETAIL SALES DIVISION LEVERAGED A 15 INCREASE IN REVENUES INTO A 250 GAIN IN PROFITABILITY THE COMPANY SAID THE GAIN IN REVENUE CONTRIBUTED TO A 45 INCREASE IN NET INCOME WHICH WAS ALSO BOOSTED BY A ONETIME 1 MILLION CREDIT RELATED TO TAX PAYMENTS BALTIMOREBASED LEGG MASON INC'S REVENUE AND NETINCOME GAINS WERE DUE TO STRONG ACTIVITY IN ITS SECURITIES AND INVESTMENT BANKING SEGMENTS THE COMPANY SAID REVENUE FROM INVESTMENT ADVISORY ACTIVITIES GREW BY 25 FROM A YEAR EARLIER THE COMPANY SAID THE EARNINGS AT THE FIVE FIRMS WERE DOWN SLIGHTLY FROM THE PREVIOUS QUARTER THEIR SHARES ENDED LOWER YESTERDAY IN BIG BOARD TRADING EXCEPT INTERREGIONAL'S 9307210084 930721 LAW JUDGE FREEH A FORMER AGENT IS CHOSEN TO DIRECT THE FBI IN TIME OF TURMOIL BY JOE DAVIDSON AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S CHOICE TO HEAD THE FEDERAL BUREAU OF INVESTIGATION US DISTRICT JUDGE LOUIS J FREEH WILL BE TAKING OVER AN AGENCY SHAKEN BY SCANDAL THAT MUST CONFRONT NEW CRIMES AND FRESH INTERNAL MANAGEMENT ISSUES IF CONFIRMED BY THE SENATE JUDGE FREEH WOULD SUCCEED WILLIAM SESSIONS WHOM THE PRESIDENT FIRED MONDAY MR SESSIONS'S OUSTER CAME SIX MONTHS AFTER A BUSH ADMINISTRATION JUSTICE DEPARTMENT REPORT ACCUSED HIM OF ETHICAL VIOLATIONS LEADING CLINTON ADMINISTRATION OFFICIALS TO QUESTION HIS JUDGMENT AND LEADERSHIP THE 43YEAROLD MR FREEH IS A LAW ENFORCEMENT LEGEND MR CLINTON SAID DURING A ROSE GARDEN NOMINATION CEREMONY HE IS A HIGHLY DECORATED FORMER AGENT AND SUPERVISOR HE HAS INVESTIGATED AND PROSECUTED SOME OF THE MOST NOTORIOUS AND COMPLEX CRIMES OF OUR TIME HE IS EXPERIENCED ENERGETIC AND INDEPENDENT HE WILL BE BOTH GOOD AND TOUGHGOOD FOR THE FBI AND TOUGH ON CRIMINALS AMONG THE CHALLENGES FACING A NEW DIRECTOR IS THE CREATION OF A RECRUITMENT SYSTEM FOR THE FBI THE OLD HIRING METHOD WAS DISCARDED AS DISCRIMINATORY ON MONDAY PRESIDENT CLINTON PRAISED MR SESSIONS FOR OPENING THE AGENCY TO MINORITIES AND WOMEN AND HE CALLED ON JUDGE FREEH TO CONTINUE THAT PROGRESS THAT MAY BE NO EASY TASK ACCORDING TO REP DON EDWARDS A CALIFORNIA DEMOCRAT AND FORMER FBI AGENT WHO HEADS THE HOUSE JUDICIARY SUBCOMMITTEE THAT OVERSEES THE BUREAU THERE ARE A LOT OF PEOPLE IN THE FBI I'M SORRY TO SAY WHO WANT TO KEEP IT THE WAY IT IS HE SAID AND DON'T WANT IT TO LOOK LIKE AMERICA AMONG THE OTHER LOOMING ISSUES ARE HOW TO ENFORCE NEW FEDERAL LAWS SUCH AS ONE AGAINST CARJACKING AT A TIME WHEN THE BUDGET ISN'T GROWING HOW TO DEAL WITH SUCH NEW PROBLEMS INTERNATIONAL ECONOMIC ESPIONAGE AND HOW TO STAY ON TOP OF TERRORISM THREATS HE HAS GOT A PLATEFUL MR EDWARDS SAID JUDGE FREEH BEGAN HIS CAREER AS AN AGENT WITH THE FBI IN 1975 A YEAR AFTER GRADUATING FROM RUTGERS UNIVERSITY LAW SCHOOL AS AN AGENT HE WORKED UNDERCOVER IN AN INVESTIGATION OF THE MOB'S CONTROL OF LONGSHOREMEN'S UNION LOCALS ON THE NEW YORK WATERFRONT HE WAS VERY CONVINCING WHEN AN OLDER MEMBER OF THE MOB SAW THENAGENT FREEH IN COURT HE TOLD PROSECUTORS I'M ONLY SORRY THAT THEY GOT THE KID AFTER RISING TO BE A SUPERVISORY AGENT IN THE FBI'S WASHINGTON HEADQUARTERS HE MADE A RARE LEAP IN 1981 TO BECOME A FEDERAL PROSECUTOR IN THE US ATTORNEY'S OFFICE IN NEW YORK IN THAT JOB HE CONTINUED TO WORK ON ORGANIZEDCRIME CASES EVENTUALLY BECOMING HEAD OF THE OFFICE'S ORGANIZEDCRIME UNIT HIS BIGGEST CASE INVOLVED AN INTERNATIONAL INVESTIGATION INTO A DRUG TRAFFICKING RING THAT USED NEW YORK PIZZA PARLORS AS DISTRIBUTION CENTERS IN THAT CASE KNOWN AS THE PIZZA CONNECTION HE GOT THE ITALIAN GOVERNMENT FOR THE FIRST TIME TO GIVE SIGNIFICANT HELP IN AN ORGANIZEDCRIME CASE AND EVEN ARRANGED TO HAVE A FEDERAL JUDGE FLOWN TO SWITZERLAND TO OVERSEE THE QUESTIONING OF AN IMPORTANT WITNESS JUDGE FREEH'S CROWNING ACHIEVEMENT WAS THE 1990 INVESTIGATION AND EVENTUAL SUCCESSFUL PROSECUTION OF A GEORGIA MAN WHO SENT MAIL BOMBS THAT KILLED A FEDERAL APPEALS COURT JUDGE AND A PROMINENT CIVIL RIGHTS LAWYER THE FBI NOMINEE HAS WIDERANGING EXPERIENCE IN USING SUCH POWERFUL AND SOMETIMES CONTROVERSIAL TOOLS AS THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW AND MONEYLAUNDERING STATUTES AND GERARD LYNCH A PROSECUTORIAL COLLEAGUE SAID THAT JUDGE FREEH WAS A MORAL TOUCHSTONE TO WHOM ASSISTANT US ATTORNEYS WENT WITH ETHICAL DILEMMAS JUDGE FREEH HAS CONTINUED TO EXAMINE THE BEHAVIOR OF LAWYERS WHILE ON THE BENCH WHERE HE'S SANCTIONED AT LEAST THREE ATTORNEYS FOR IMPROPER CONDUCT IN LESS THAN TWO YEARS JUDGE FREEH IS SAID TO BE QUITE APOLITICAL HIS 1991 NOMINATION TO THE BENCH BY PRESIDENT BUSH WAS SUPPORTED BY REPUBLICAN NEW YORK SEN ALFONSE D'AMATO AND OTTO OBERMAIER A FORMER US ATTORNEY UNDER WHOM JUDGE FREEH WORKED SAID THE JUDGE IS A REGISTERED REPUBLICAN 9307210083 930721 TEXAS UTILITIES UNIT'S NOTES DALLAS TEXAS UTILITIES CO SAID ITS TEXAS UTILITIES MINING CO UNIT WILL PREPAY 75 MILLION OF 1085 SENIOR NOTES DUE 1995 THE PRICE WILL BE 103 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE PREPAYMENT DATE AUG 20 9307210082 930721 POLAROID BUFFETED BY STARTUP COSTS POSTS 19 DROP IN 2NDQUARTER PROFIT CAMBRIDGE MASS POLAROID CORP SAID SECONDQUARTER NET INCOME FELL 19 REFLECTING STARTUP COSTS OF A NEW INSTANT CAMERA AND A MEDICAL IMAGING SYSTEM THE INSTANTPHOTOGRAPHY CONCERN REPORTED NET INCOME OF 286 MILLION OR 61 CENTS A SHARE DOWN FROM 355 MILLION OR 74 CENTS A SHARE A YEAR EARLIER SALES ROSE 2 TO 5699 MILLION FROM 5577 MILLION FOR THE SIX MONTHS POLAROID HAD A LOSS OF 942 MILLION OR 202 A SHARE COMPARED WITH NET INCOME OF 417 MILLION OR 86 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 104 BILLION FROM 989 MILLION EARNINGS IN THE LATEST QUARTER REFLECTED THE SALE OF POLAROID'S 50 INTEREST IN PB DIAGNOSTIC SYSTEMS INC ALTHOUGH POLAROID DIDN'T BREAK OUT THE GAIN THE COMPANY TOLD ANALYSTS THAT PROFIT FROM THE SALE AFTER TAXES EQUALED ABOUT SIX CENTS A SHARE ACCORDING TO ALEX HENDERSON OF PRUDENTIAL SECURITIES THE GAIN WAS OFFSET BY A CHARGE OF 5 MILLION THAT POLAROID IS TAKING IN EACH QUARTER OF THIS YEAR AS A POSTRETIREMENT BENEFITS PROVISION POLAROID SAID US SALES FELL 4 AS RETAILERS CONTINUED TIGHTENING INVENTORIES AND ITS VIDEOTAPE BUSINESS DECLINED BUT INTERNATIONAL SALES CLIMBED 9 TO 2806 MILLION FROM 2571 MILLION POLAROID SAID THE INCREASE WAS DUE PRIMARILY TO SHIPMENTS UNDER THE COMPANY'S CONTRACT TO SUPPLY VOTER IDENTIFICATION CARDS TO THE MEXICAN GOVERNMENT IT ALSO SAID INSTANTCAMERA SALES INCREASED WORLDWIDE IN THE SECOND QUARTER HELPED BY THE INTRODUCTION OF A NEW CAMERA KNOWN AS CAPTIVA IN THE US WHETHER INTERNATIONAL SALES WILL CONTINUE TO BE BRISK IN THE THIRD QUARTER IS QUESTIONABLE NOW THAT POLAROID'S MEXICAN CONTRACT HAS BEEN COMPLETED MR HENDERSON SAID HE ESTIMATES THAT THE CONTRACT BOOSTED POLAROID'S SECONDQUARTER SALES BY ABOUT 25 MILLION MR HENDERSON SAID HIS FULLYEAR EARNINGS ESTIMATE FOR POLAROID REMAINS UNCHANGED AT 220 A SHARE EXCLUDING EXTRAORDINARY ONETIME ITEMS POLAROID EARNED 206 A SHARE IN 1992 9307210081 930721 ASHLAND OIL SEES RISE IN PERSHARE EARNINGS IN FISCAL 3RD QUARTER ASHLAND KY ASHLAND OIL INC CHAIRMAN JOHN R HALL SAID HE EXPECTS THE COMPANY WILL REPORT FISCAL THIRDQUARTER EARNINGS OF 70 CENTS TO 80 CENTS A SHARE AS ITS UNITS IN THE CHEMICAL BUSINESS VALVOLINE MOTOR OIL AND SUPERAMERICA GASOLINE STATIONS AND CONVENIENCE STORES HEAD TOWARD RECORD ANNUAL OPERATING PROFIT IN THE QUARTER ENDED JUNE 30 1992 ASHLAND EARNED 25 MILLION OR 42 CENTS A SHARE ASHLAND ALSO IS PRODUCING STRONGER EARNINGS IN ITS PETROLEUM EXPLORATION AND CONSTRUCTION DIVISIONS MR HALL NOTED TOO THAT CAPITAL SPENDING AT ASHLAND PETROLEUM WILL FALL IN FISCAL 1994 TO ABOUT 150 MILLION FROM 242 MILLION THIS YEAR THE PETROLEUM DIVISION IS CUTTING CAPITAL SPENDING AS IT WINDS UP PROJECTS DESIGNED TO BRING ITS OPERATIONS IN COMPLIANCE WITH ENVIRONMENTAL LAWS THAT MEANS WE WILL AGAIN HAVE SOME FREE CASH TO INVEST IN SOME OF THESE OTHER BUSINESSES MR HALL SAID THE COMPANY MAY USE THE MONEY FOR ACQUISITIONS EXPANSIONS OR TO REBUILD AGING SUPERAMERICA OUTLETS ASHLAND'S CHEMICAL UNIT IS BENEFITING FROM THE ADDITION OF UNOCAL CORP'S CHEMICAL DISTRIBUTION ARM WHICH IT ACQUIRED IN 1992 ASHLAND SOLD 80 SUPERAMERICA STORES THIS FISCAL YEAR LEAVING IT WITH 592 UNITS OWNED AND OPERATED BY THE COMPANY VALVOLINE IS BENEFITING FROM WHAT MR HALL TERMED AGGRESSIVE MARKETING AT MASS MERCHANDISERS SUCH AS KMART AND WALMART VALVOLINE'S QUICK OILCHANGE SHOPS SHOULD RECORD A STRONGER FINANCIAL PERFORMANCE THIS YEAR BUT COMPETITIVE PRESSURES STILL ARE KEEPING ITS RATE OF RETURN BELOW THE LEVEL ASHLAND WANTS HE SAID ASHLAND'S EXPLORATION DIVISION IS SEEING HIGHER NATURAL GAS PRODUCTION AND STRONGER NATURAL GAS PRICES WHICH ARE OFFSETTING FALLING PRODUCTION FROM MATURE OIL WELLS IN NIGERIA ASHLAND'S PETROLEUM UNIT IS MAKING MONEY MR HALL SAID BUT HE ADDED THAT COMPETITIVE PRESSURES ARE HOLDING DOWN THE DIVISION'S PROFITS 9307210080 930721 BUSINESS BRIEF INDRESCO INC VENTURE PARTNER KOMATSU TO BUY PART OF FIRM'S STAKE INDRESCO INC DALLAS SAID IT AGREED TO SELL A PORTION OF ITS STAKE IN JOINT VENTURE KOMATSU DRESSER CO TO PARTNER KOMATSU LTD A JAPANBASED HEAVY EQUIPMENT MAKER FOR ABOUT 60 MILLION AFTER THE SALE INDRESCO'S INTEREST IN KOMATSU DRESSER WOULD DECREASE TO 19 FROM 50 KOMATSU DRESSER OF LINCOLNSHIRE ILL MAKES CONSTRUCTION AND MINING EQUIPMENT INDRESCO'S CURRENT STAKE IS VALUED AT 110 MILLION TO 115 MILLION A SPOKESMAN SAID THE COMPANY WHICH ALSO MAKES CONSTRUCTION AND MINING EQUIPMENT SAID IT WAS REDUCING ITS STAKE TO PURSUE ACQUISITIONS THE TRANSACTION IS EXPECTED TO BE COMPLETED WITHIN A MONTH 9307210079 930721 SENATE PANEL VOTES TO EASE CERTAIN PURCHASING RULES WASHINGTON A SENATE APPROPRIATIONS SUBCOMMITTEE VOTED TO RELAX GOVERNMENT PURCHASING RESTRICTIONS INITIATED LAST YEAR BY ITS CHAIRMAN SEN DENNIS DECONCINI ON BEHALF OF A FORMER ARIZONA LAWMAKER THE GOVERNMENT IS STILL DIRECTED TO BUY RECYCLED CARTRIDGES FOR LASER PRINTERS USED BY FEDERAL AGENCIES BUT THE PROVISION ALLOWS UP TO HALF THE PURCHASES TO BE MADE THROUGH UNRESTRICTED COMPETITION THE PANEL ALSO DROPPED A QUALITYCONTROL STANDARD DEMANDING CERTIFICATION BY AN INDEPENDENT TEST LABORATORY AS CHAIRMAN OF THE PANEL THE ARIZONA DEMOCRAT WORKED TO ADOPT MORE SEVERE RESTRICTIONS THAT HAVE BENEFITED A VIRGINIA COMPANY HEADED BY JOHN CONLAN A FORMER PHOENIX REPUBLICAN CONGRESSMAN MR CONLAN LOBBIED THE SENATOR PERSONALLY BUT MR DECONCINI HAS DENIED ANY POLITICAL DEAL AND SAID HE ACTED ONLY TO BENEFIT SMALL BUSINESS GENERALLY WHEN ADOPTED LAST YEAR THE RESTRICTIONS WERE ATTACHED TO THE FISCAL 1993 BUDGET FOR THE GENERAL SERVICES ADMINISTRATION BUT REPRESENTED AN AMENDMENT TO PERMANENT LAW YESTERDAY'S ACTION CAME AS THE SUBCOMMITTEE DEALT WITH THE GSA FISCAL 1994 BUDGET WHICH MUST NOW PASS THROUGH THE FULL SENATE AND CONFERENCE WITH THE HOUSE 9307210078 930721 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9307210077 930721 WHO'S NEWS WHOLE FOODS MARKET INC WHOLE FOODS MARKET INC AUSTIN TEXAS PETER ROY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS NATURAL FOODS RETAILER JOHN MACKEY WHO WAS PRESIDENT RETAINS THE POSITIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR ROY FORMERLY WAS PRESIDENT OF THE NORTHERN CALIFORNIA REGION OF THE COMPANY WALTER ROBB WAS NAMED TO THAT POST 9307210076 930721 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 PACIFIC GAS & ELECTRIC CO 125 BILLION OF FIRST AND REFUNDING MORTGAGE BONDS WERE PRICED ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE WAS 400 MILLION OF 5375 FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 1 1998 PRICED AT 99635 TO YIELD 5459 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS GROSS SPREAD IS 6 SELLING CONCESSION IS 350 AND REALLOWANCE IS 250 THE SECOND TRANCHE WAS 400 MILLION OF 625 FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 1 2003 PRICED AT 99892 TO YIELD 6264 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS GROSS SPREAD IS 650 SELLING CONCESSION IS 4 AND REALLOWANCE IS 250 THE THIRD TRANCHE WAS 450 MILLION OF 725 FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 1 2026 PRICED AT 99181 TO YIELD 7315 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS GROSS SPREAD IS 875 SELLING CONCESSION IS 5 AND REALLOWANCE IS 250 RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CHASE MANHATTAN CORP 200 MILLION ISSUE OF 625 SUBORDINATED NOTES DUE AUG 1 2005 WAS PRICED AT 9886 TO YIELD 6639 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE TREASURYS RATED BDOUBLEA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC DUKE POWER CO 150 MILLION ISSUE OF 7296 FIRST AND REFUNDING MORTGAGE BONDS DUE JULY 1 2033 WAS WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY LEHMAN BROTHERS IT WAS REOFFERED AT 9653 TO YIELD 7267 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P BALTIMORE GAS & ELECTRIC CO 125 MILLION ISSUE OF 550 FIRST AND REFUNDING MORTGAGE BONDS DUE JULY 15 2000 WAS WON IN COMPEITIVE BIDDING BY A GROUP OF DEALERS LED BY CITICORP SECURITIES MARKETS INC IT WAS REOFFERED AT 98732 TO YIELD 572 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P FEDERAL HOME LOAN BANK SYSTEM 91 MILLION ISSUE OF 444 BONDS DUE JULY 29 1996 WAS PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 11 BASIS POINTS ABOVE TREASURYS NOT RATED BY MOODY'S OR S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP DATAWARE TECHNOLOGIES INC AN INITIAL OFFERING OF 225 MILLION COMMON SHARES WAS PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST STARCRAFT AUTOMOTIVE CORP AN INITIAL OFFERING OF 215 MILLION COMMON SHARES WAS PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY ROBERT W BAIRD & CO HAROLD'S STORES INC A SECOND PUBLIC OFFERING OF 500000 COMMON SHARES WAS PRICED AT 675 A SHARE NEW YORK CITY THE 25789 MILLION FIXEDRATE CURRENT INTEREST BONDS SUBSERIES A1 FROM THE CITY'S 775 MILLION GENERAL OBLIGATION BONDS FISCAL 1994 SERIES A OFFERING WERE REPRICED AND RESTRUCTURED BY A FIRST BOSTON CORP GROUP THE YIELD ON SERIAL BONDS DUE 1995 WAS CUT 10 BASIS POINTS THE YIELD ON SERIAL BONDS DUE 1996 WAS REDUCED FIVE BASIS POINTS AND A 2007 MATURITY WAS CREATED AND GIVEN A 580 YIELD THE RANGE OF YIELDS IS NOW FROM 365 IN 1995 TO 590 IN 2013 COMPARED WITH THE INITIAL YIELD RANGE BETWEEN 375 IN 1995 TO 590 IN 2013 THE OFFERING ALSO INCLUDES ABOUT 304 MILLION VARIABLERATE BONDS AND 142 MILLION DERIVATIVES THAT WON'T BE PUBLICLY REOFFERED AS WELL AS ABOUT 70 MILLION OF CAPITAL APPRECIATION BONDS THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC THE CURRENT INTEREST BONDS ARE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P CHARLOTTE NC 184 MILLION UNLIMITED TAX GENERAL OBLIGATION REFUNDING BOND ISSUE WAS WON BY UNDERWRITERS LED BY FIRST BOSTON CORP WITH A BID SETTING THE TRUE INTEREST COST AT 48132 A 62 MILLION UNLIMITED TAX BOND ISSUE CONSISTING OF 40 MILLION WATER AND SEWER BONDS AND 22 MILLION PUBLIC IMPROVEMENT BONDS WAS WON WITH A BID SETTING THE NET INTEREST COST AT 51742 THE 184 MILLION DEAL WAS PRICED TO YIELD FROM 220 IN 1994 TO 5 IN 20072012 WHILE THE 62 MILLION BONDS WERE PRICED TO YIELD FROM 220 IN 1994 TO 535 IN 20142018 THE BONDS ARE RATED TRIPLEA BY MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 155 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1569 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPPED 30YEAR 8 MORTGAGE SECURITIES GOLD 147 THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 450 OF THE PSA CURVE LKB BADENWUERTTEMBERG FINANCE NV AMSTERDAM GERMAN PARENT 1 BILLION DEUTSCHE MARKS OF 6625 EUROBONDS DUE AUG 20 2003 AT ISSUE PRICE 10160 VIA DEUTSCHE BANK AG REOFFERED AT 99425 TO YIELD 671 A MARGIN OF 18 BASIS POINTS OVER COMPARABLE GERMAN BUND FEES 250 POINTS BANCO NACIONAL DE COMERCIO EXTERIOR SNC TRUST DIVISION AS TRUSTEE FOR FIDEICOMISO HUITES MEXICO AGENCY 200 MILLION OF 8 EUROBONDS DUE AUG 5 2003 AT ISSUE AND REOFFER PRICE 9980 VIA LEHMAN BROTHERS INTERNATIONAL LTD BONDS YIELD 232 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1125 POINTS INTEREST PAYABLE SEMIANNUALLY COMPANIA NAVIERA PEREZ COMPANC SACFIMFA ARGENTINA 200 MILLION OF 8375 EUROBONDS DUE JULY 30 1998 AT ISSUE AND FIXED REOFFER PRICE 99859 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 841 SEMIANNUAL A SPREAD OF 340 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 0875 POINT INTEREST PAYABLE SEMIANNUALLY CONTINENTAL BANK CORP US 150 MILLION OF FLOATINGRATE EURONOTES DUE AUGUST 1998 AT ISSUE AND REOFFER PRICE 9975 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAYABLE QUARTERLY AT 50 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS NOTES CALLABLE AFTER AUGUST 1995 AT PAR FEES 025 POINT SONY CAPITAL CORP JAPAN PARENT 130 MILLION OF 5625 EUROBONDS DUE JULY 29 1998 AT ISSUE AND REOFFER PRICE 10025 VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 5566 A MARGIN OF 50 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 025 POINT ITOCHU CORP JAPAN 20 MILLION YEN OF 450 EUROBONDS DUE NOV 18 1997 AT ISSUE PRICE 101875 VIA MERRILL LYNCH INTERNATIONAL LTD REOFFERED AT 10025 TO YIELD 4429 FEES 1875 POINTS GENERAL ELECTRIC CAPITAL CORP US PARENT 200 BILLION ITALIAN LIRE OF 955 EUROBONDS DUE AUG 25 2003 AT ISSUE PRICE 10229 VIA CREDITO ITALIANO BONDS YIELD 950 AFTER DEDUCTING FULL FEES OF 2 POINTS NV NEDERLANDSE GASUNIE NETHERLANDS 125 MILLION SWISS FRANCS OF 425 PUBLIC BONDS DUE AUG 17 1998 PRICED AT 102 VIA UNION BANK OF SWITZERLAND FEES 1625 POINTS BACOB OVERSEAS LTD BELGIAN PARENT 75 MILLION CANADIAN OF 725 EUROBONDS DUE SEPT 1 1999 AT ISSUE PRICE 10115 VIA DAIWA EUROPE LTD REOFFERED AT 9965 TO YIELD 732 A SPREAD OF 70 BASIS POINTS OVER INTERPOLATED SIXYEAR CANADIAN GOVERNMENT BOND CURVE OR 85 BASIS POINTS OVER FIVEYEAR NOTE FEES 1875 POINTS CREDIT LOCAL DE FRANCE FRANCE AGENCY 300 MILLION FRENCH FRANCS OF 7 EUROBONDS DUE MAY 12 2003 AT ISSUE AND REOFFER PRICE 10052 VIA CREDIT COMMERCIAL DE FRANCE BONDS WILL TRADE INTERCHANGEABLY WITH 25 BILLION FRANCS OF OUTSTANDING IDENTICAL NOTES ALL OTHER TERMS UNCHANGED NEW TRANCHE OF BONDS YIELD 692 ANNUAL A SPREAD OF 21 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY NOTE FEES 0325 9307210075 930721 MASSACHUSETTS IS ROILED BY BOND SCANDAL BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE MUNICIPAL BOND CONFLICTOFINTEREST SCANDAL IS BOILING OVER IN YET ANOTHER STATE THE MASSACHUSETTS WATER RESOURCES AUTHORITY TODAY IS EXPECTED TO DISMISS ITS FINANCIAL ADVISER AND ITS SENIOR UNDERWRITERS OVER APPARENT CONFLICTS OF INTEREST THE AUTHORITY IS ONE OF THE NATION'S LARGEST ISSUERS OF MUNICIPAL BONDS ITS EXPECTED ACTION FOLLOWS AN INQUIRY BY THE STATE INSPECTOR GENERAL THAT FOUND THAT ITS FORMER ADVISER LAZARD FRERES & CO AND THE HEAD OF THE FIRM'S BOSTON OFFICE MARK S FERBER RECEIVED FEES AND OTHER PAYMENTS FROM MERRILL LYNCH & CO ONE OF THE AGENCY'S LEAD UNDERWRITERS THAT HADN'T BEEN FULLY DISCLOSED TO THE AGENCY MR FERBER'S RESPONSIBILITIES INCLUDED ADVISING THE AGENCY ON UNDERWRITERS' CAPABILITIES MR FERBER LEFT LAZARD IN FEBRUARY TO JOIN FIRST ALBANY CORP WHERE HE CONTINUED TO ADVISE THE MWRA FIRST ALBANY ALSO IS EXPECTED TO BE DISMISSED THE SENIOR COMANAGERS OF MWRA'S DEBT SALES EXPECTED TO BE DISMISSED TODAY INCLUDE MERRILL GOLDMAN SACHS & CO AND BEAR STEARNS & CO THE DEVELOPMENT IN MASSACHUSETTS IS THE LATEST ADDITION TO A GROWING LIST OF SCANDALS THAT HAVE SHAKEN THE MUNICIPAL BOND MARKET THIS YEAR MAKING PAYMENTS TO FINANCIAL ADVISERS AND OTHER MIDDLEMEN ALONG WITH CONTRIBUTING TO KEY POLITICIANS' CAMPAIGNS HAVE BECOME COMMON WAYS FOR WALL STREET INVESTMENT BANKERS TO GAIN NEW UNDERWRITING BUSINESS BUT SUCH PRACTICES HAVE COME UNDER ATTACK IN RECENT MONTHS BY THE SECURITIES AND EXCHANGE COMMISSION PROMPTING MANY CITIES AND STATES TO REEXAMINE THEIR ACTIONS IN MAY THE SEC BEGAN INVESTIGATING THE SALE OF 29 BILLION OF BONDS SOLD BY THE NEW JERSEY TURNPIKE AUTHORITY AMONG OTHER THINGS THE SEC IS LOOKING AT WHETHER INVESTMENT BANKERS AT MERRILL MADE ILLEGAL PAYMENTS TO A FIRM WITH POLITICAL AND FINANCIAL CONNECTIONS TO A THENTOP AIDE TO NEW JERSEY GOV JIM FLORIO TO RECEIVE PART OF THE TURNPIKE BOND BUSINESS THE MASSACHUSETTS CASE COULD BOOST PENDING STATE LEGISLATION TO SHARPLY RESTRICT NEGOTIATED BOND SALES FORCING INCREASED USE OF BIDDING AMONG UNDERWRITERS FOR THE ISSUE AND SPUR TOUGHER DISCLOSURE RULES ON THE LARGELY UNREGULATED MUNICIPAL BOND INDUSTRY MERRILL HAS SOLD ABOUT 1 BILLION OF THE 3 BILLION ISSUED SO FAR BY THE WATER AGENCY WHICH IS EXPECTED TO ISSUE ABOUT 3 BILLION MORE IN AN EFFORT TO CLEAN UP BOSTON HARBOR DOUGLAS B MACDONALD THE AGENCY'S CHAIRMAN SAID MERRILL PAID LAZARD AND MR FERBER 28 MILLION OVER A THREEYEAR PERIOD TO ADVISE MERRILL ON MARKETING OTHER FINANCIAL PRODUCTS TO MUNICIPAL ISSUERS WHILE NO ILLEGALITY IS BEING ALLEGED MR MACDONALD SAID IT WAS AN AWFULLY COZY RELATIONSHIP FOR A SUBSTANTIAL FEE BETWEEN A FIRM THAT WAS A THIRDPARTY UNDERWRITER AND LAZARD AND MR FERBER OUR FIDUCIARY WE NEED BETTER STANDARDS IN THE INDUSTRY MR MACDONALD ADDED AND WE'RE A BIG PLAYER IN IT NOW SO WE'RE GOING TO GET OUT FRONT GOLDMAN BEAR STEARNS AND MERRILL HAVEN'T BEEN ACCUSED OF WRONGDOING BY THE STATE BUT IF THE MWRA'S BOARD VOTES TODAY AS EXPECTED TO DISMISS THESE FIRMS THEY WILL HAVE TO REBID FOR THE UNDERWRITING BUSINESS AND DO SO UNDER TOUGH NEW DISCLOSURE RULES NO ONE HAS RAISED AN ISSUE OF THE SOUNDNESS OF THE BOND ISSUES MR MACDONALD SAID BUT WE ARE GOING BACK TO THE DRAWING BOARD WITH A NEW SET OF RULES THAT WILL REQUIRE A LOT MORE DISCLOSURE A MERRILL SPOKESWOMAN SAID THAT ITS AGREEMENT WITH LAZARD'S BOSTON OFFICE AND MR FERBER WAS PROPER APPROPRIATE AND LEGAL IN EVERY RESPECT AND WE SEE NO CONFLICT OF INTEREST OR IMPROPRIETY WAYNE BUDD ATTORNEY FOR FIRST ALBANY AND ITS EMPLOYEE MR FERBER ALSO SAID THAT HIS CLIENTS DID NOTHING IMPROPER AND INSISTED THAT NONE OF THE CONTRACTS INTERFERED WITH LAZARD OR MR FERBER'S ABILITY TO GIVE IMPARTIAL AND CAPABLE ADVICE TO THE MWRA HE SAID THERE WAS NO FAVORED TREATMENT OF MERRILL OR FIRST ALBANY DURING THE PROCESS A SPOKESMAN FOR LAZARD DIDN'T DISPUTE PAYMENT OF A RETAINER TO LAZARD BY MERRILL WHILE MR FERBER WAS THE AGENCY'S FINANCIAL ADVISER BUT HE SAID MR FERBER WASN'T DIRECTLY INVOLVED IN THE SELECTION OF MERRILL HE WASN'T INVOLVED BECAUSE HE DIDN'T WANT EVEN THE APPEARANCE OF A CONFLICT OF INTEREST THE SPOKESMAN SAID MR FERBER COULDN'T BE REACHED FOR COMMENT YESTERDAY THE STATE INSPECTOR GENERAL ALSO FOUND THAT FROM AUGUST 1991 THROUGH YEAR END 1992 MR FERBER GOT 10000 A MONTH FROM FIRST ALBANY WHILE STILL AT LAZARD DURING THAT PERIOD FIRST ALBANY BECAME A MEMBER OF THE AGENCY'S UNDERWRITING TEAM THE TIMING CONTRIBUTES TO THE DISTURBING APPEARANCE OF THIS RELATIONSHIP ROBERT A CERASOLI THE INSPECTOR GENERAL WROTE TO MWRA CHIEF MR MACDONALD MR CERASOLI SAID NO WRITTEN RECORD OF THE AGREEMENT WAS PRODUCED AND THAT INVOICES FOR UNSPECIFIED SERVICES WERE THE ONLY PAYMENT RECORD THE INSPECTOR GENERAL'S INQUIRY FIRST DISCLOSED BY THE BOSTON GLOBE IS CONTINUING AND COULD GROW IN SCOPE PEOPLE FAMILIAR WITH THE PROBE SAID AND IN A LETTER TO THE MWRA RELEASED LATE YESTERDAY THE INSPECTOR GENERAL SAID THAT THE EXPECTED VOTE TO DISMISS ITS FINANCIAL ADVISERS AND UNDERWRITING TEAM SIMPLY DOES NOT GO FAR ENOUGH TO RESTORE PUBLIC CONFIDENCE HE RECOMMENDS INSTITUTING COMPETITIVE BIDDING FOR BOND OFFERINGS AND THAT UNDERWRITING ADVICE BE FOUND EITHER INHOUSE OR THROUGH AN INDEPENDENT OUTSIDE FIRM NOT ASSOCIATED WITH AN INVESTMENT BANKER CONSTANCE MITCHELL IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9307210073 930721 LEISURE & ARTS THE GALLERY LOOKING FOR LAUGHS BY CAITLIN KELLY MONTREAL IF ANY CITY COULD USE A FEW LAUGHS THIS ONE CAN IT'S SADDLED WITH 15 UNEMPLOYMENT FOR RENT SIGNS LITTER THE COMMERCIAL CORE ENGLISHFRENCH RELATIONS ARE EVER BITTER AND THE OLYMPIC STADIUM IS CRUMBLING GILBERT ROZON A QUEBECOIS ENTREPRENEUR HOPES HIS LATEST VENTURE THE INTERNATIONAL MUSEUM OF HUMOR WILL HELP MR ROZON UNTIL NOW WAS PROBABLY BEST KNOWN AS THE CREATOR OF THE CITY'S HUGELY SUCCESSFUL 10YEAROLD ANNUAL COMEDY FESTIVAL JUST FOR LAUGHS HIS NEW MUSEUM BILLED AS THE ONLY ONE OF ITS KIND IN THE WORLD IS DESIGNED TO ATTRACT HUMOR LOVERS YEARROUND TO A SEEDY DOWNTOWN STRIP THAT IS CURRENTLY CROWDED WITH CARPARTS STORES AND KOREAN GROCERIES BUT HE FACES A TOUGH SELL AT LEAST AMONG ENGLISHSPEAKING CANADIANS WHO LOVE TO HATE QUEBEC FOR CONTINUING TO WIN HUGE GOVERNMENT SUBSIDIES FOR EVERYTHING UNDER THE SUN THE ENGLISHLANGUAGE PRESS HAS COLDSHOULDERED MR ROZON WHO ROPED IN 55 MILLION CANADIAN DOLLARS US43 MILLION FROM THE FEDERAL GOVERNMENT AND AN ADDITIONAL C75 MILLION FROM TWO LEVELS OF QUEBEC GOVERNMENT ANGLOS ARE NOT AMUSED WITH MR ROZON CHARGING AN ADMISSION FEE OF C1775 THEY FIGURE HE'S SIMPLY LAUGHING HIS WAY TO THE BANK I'M NERVOUS AS HELL MR ROZON SAID DAYS BEFORE HIS 30000SQUAREFOOT MUSEUM OPENED WORKMEN STILL HAMMERING AND SAWING AWAY HE SHOULDN'T HAVE BEEN THE MUSEUM IS A HIT PROBABLY ONE OF THE WORLD'S UNSTUFFIEST IT'S STUNNING AND LUSH DENSE WITH PUNS JOKES AND DOUBLE ENTENDRES IT'S ALSO VERY MONTREAL A LITTLE RISQUE A LITTLE MARGINAL A LITTLE ODD AND HIGHLY THEATRICAL THE MALE STATUES HAVE GENITALIA EVERYONE FROM QUEEN ELIZABETH TO SADDAM HUSSEIN AND RONALD REAGAN IS A TARGET BUILT INSIDE THE SEVENSTORY SHELL OF A BREWERY THE MUSEUM IS DESIGNED AS A LARGE STAGE SET VISITORS DON HEADSETS AND TAKE A 2 1/2HOUR GUIDED TOUR OF THE WORLD OF HUMOR AN INFRARED SENSOR ATOP THE HEADSET TRIGGERS AN OVERHEAD TAPE IN ENGLISH OR FRENCH TO BEGIN AS YOU MOVE INTO EACH AREA THE EXHIBIT STARTS OFF UNFORTUNATELY WITH ITS WEAKEST JOKES A LONG HALL OF BOXES ATTEMPTS TO CLASSIFY HUMOR ONLY PARODY WITH ITS PERILOUSLY LEANING BOX HOLDING A TOWER OF PISA SEEMS VERY FUNNY A TROMPE L'OEIL ELEVATOR RIDE TAKES YOU BACK IN TIME TO A RECREATION OF MAN'S FIRST LAUGH ONE SMALL CHILD WAS NOT AMUSED AND KEPT HISSING I'M SCARED A GALLERY OF POLITICAL HUMOR FALLS SOMEWHAT FLAT THANKS TO ITS FOCUS ON RECENTLY RETIRED PRIME MINISTER BRIAN MULRONEY BAD LUCK DEFLATES ANOTHER SET PLANNED LAST YEAR THE MODERNDAY EXAMPLE OF A COURT JESTER IS WOODY ALLEN THE SET'S MEDIEVAL CASTLE IS STILL BEAUTIFUL AND ITS ROOMSIZED CHESSBOARD MAKES THE BEST USE OF THE HEADSETS YOU HEAR HISTORY WHEN YOU STEP ON A BLACK SQUARE A JOKE WHEN YOU STEP ON WHITE THE PACE PICKS UP IN A HUGE OPEN HALL DOMINATED BY AN OVERSIZE GOLDEN MASK WITH EVERCHANGING VIDEO EYES HERE IS THE HISTORY OF COMMEDIA DELL'ARTE WITH TWOSTORYHIGH SCREENS SHOWING ITALIAN ACTORS MIDPIECE EVEN WITHOUT TRANSLATION THE MESSAGE IS CLEAR THAT HUMOR CAN BE UNIVERSAL THE CIRCUS A DAZZLING VISUAL ILLUSION ALSO OFFERS SERIOUS HISTORY CLOWNS ARE CALLED JOEY IN HONOR OF JOSEPH GRIMALDI WHO STARTED THE TRADITION IN 1806 FILM CLIPS AND SOUND EFFECTS ARE ESPECIALLY DRAMATIC IN THE CAVERNOUS HALL BLACK HUMOR HAS ITS PLACE IN MR ROZON'S MUSEUM AS WELL ONE ROOM LOOKS AS IF A WAR OF THE ROSESSTYLE FIGHT HAS JUST TAKEN PLACE IN IT THE SCENE IS OF DOMESTIC CHAOS WITH A DISHEVELED BANQUET TABLE SALAD SERVERS EMBEDDED IN THE ARM OF AN UPENDED WING CHAIR AND A WEDDING PICTURE WITH A FORK STUCK INTO THE GROOM'S FACE SLIDE SHOWS OF CARTOONS ON THE SUBJECT PLAY CONTINUOUSLY HERE THE BEST ROOM CARTOON LOVERS WILL SIMPLY STOP ASTOUNDED IN THE SMALL SPACE DEVOTED TO ANIMATED ART SUDDENLY FINDING THEMSELVES STANDING ON THE WALL INSTEAD OF THE FLOOR FEELING LIKE A TOON THE MUSEUM IS STRONGEST IN ITS WITTY SUPERBLY EXECUTED VISUAL HUMOR THE SET DESIGNS ARE LAVISH DETAILED AND FULL OF MEANINGS IT'S NOT A LAUGH RIOT BUT A SOPHISTICATED MELANGE OF MATERIAL MOST OF IT AMERICAN BRITISH AND FRENCH IT'S DEFINITELY NOT FOR CHILDREN ANYONE UNDER 12 JUST WON'T GET IT BUT WHO CAN RESIST THE SIXFOOTHIGH PERFUME BOTTLE COMPLETE WITH ATOMIZER OH D'HEURE OR THE GLOWING PURPLE RAILINGS THAT IMITATE STAIRCASES SURROUNDING A FILM CLIP OF STAIRCASE PRATFALLS IS IT FUNNY IT ALL DEPENDS ON YOUR SENSE OF HUMOR THERE'S CERTAINLY SOMETHING FOR EVERYONE FROM CLIPS OF TELEVISION SHOWS SUCH AS ROSEANNE AND THE MARY TYLER MOORE SHOW TO SAVAGELY FUNNY VIGNETTES ARTISTS AND DESIGNERS MIGHT BEST APPRECIATE EVEN IF YOU HATE IT IT'LL ALL CHANGE NEXT YEAR LIKE A STAGE SET IT WILL ALL BE DISASSEMBLED AND AN ENTIRELY NEW PRESENTATION OFFERED IF YOU DON'T LIKE IT THE JOKE'S ON YOU MS KELLY IS A WRITER IN TARRYTOWN NY 9307210072 930721 WORLD MARKETS STOCKS WEAKEN IN TOKYO DROP IN LONDON RISE IN FRANKFURT ZURICH PRICES SINK IN CORRECTION A WALL STREET JOURNAL NEWS ROUNDUP SHARE PRICES IN TOKYO LOST GROUND TUESDAY IN THIN DEALINGS WEIGHED DOWN BY CONTINUED JAPANESE POLITICAL UNCERTAINTIES AND WEAK ECONOMIC INDICATORS LONDON STOCKS FELL SHARPLY WITH BANKING AND CONSUMERGOODS SECTORS LEADING THE WAY DOWN BUT FRANKFURT PRICES REBOUNDED FROM A WEAK OPENING TO END SLIGHTLY HIGHER IN ZURICH A TECHNICAL CORRECTION COMBINED WITH PROFITTAKING TO LEAD STOCKS DOWN SHARPLY AND THE MARKET'S MAIN INDEX TOOK A 24 DRUBBING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10653 UP 003 REFLECTING HIGHER MARKETS IN THE AMERICAS AND EUROPE AND LOWER ASIA/PACIFIC MARKETS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15784 UP 428 OR 28 WITH CASINO MUNICIPALE DE CANNES OF FRANCE POSTING A 13 GAIN IN ITS LOCAL CURRENCY TRUCKING STOCKS TRAILED AT 11551 DOWN 155 OR 13 WITH NEDLLOYD OF THE NETHERLANDS SLIDING 65 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 18061 POINTS MONDAY FELL 11292 TO 2003800 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES DOWN FROM 2663 MILLION SHARES A DAY EARLIER LOSERS OUTPACED GAINERS 697249 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DECLINED 820 POINTS MONDAY LOST 1005 TO 163463 IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 18061 POINTS MONDAY FELL 11292 TO 20038 ON WEDNESDAY THE NIKKEI INDEX EASED 1480 POINTS TO CLOSE THE MORNING SESSION AT 2002320 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES DOWN FROM 2663 MILLION SHARES A DAY EARLIER LOSERS OUTPACED GAINERS 697249 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DECLINED 820 POINTS MONDAY LOST 1005 TO 163463 POLITICS REMAINED INVESTORS' BIGGEST WORRY THE FAILURE OF LAST SUNDAY'S GENERAL ELECTION TO MAKE CLEAR WHO WILL LEAD THE NEXT JAPANESE GOVERNMENT KEPT MANY INVESTORS ON THE SIDELINES WITH THAT SITUATION EXPECTED TO REMAIN UNCLEAR FOR SEVERAL WEEKS INVESTORS LACKED CONFIDENCE THAT THE GOVERNMENT CAN RESPOND APPROPRIATELY TO THE LATEST SIGNS OF ECONOMIC WEAKNESS NEW DATA SHOWED THE WEAKEST RESULTS IN FIVE MONTHS FOR JAPAN'S LEADING INDICATORS AND HOUSEHOLD SPENDING DROPPED 18 IN MAY AFTER TWO MONTHS OF GAINS BUT THE GOVERNMENT SAID THE DATA WERE EXPECTED FOLLOWING STRONG RESULTS OVER THE PAST FEW MONTHS AND DIDN'T OFFER ANY REASON FOR CHANGING THE VIEW THAT THE ECONOMY'S DOWNTURN HAS LARGELY BOTTOMED OUT NONETHELESS MANY INVESTORS WEREN'T PERSUADED AND DECLINED TO GET BACK INTO THE MARKET WHERE INTEREST IN BOTH BUYING AND SELLING WAS LIMITED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 190 POINTS TO 28239 THE FT 30STOCK INDEX GAVE UP 130 POINTS TO 22213 VOLUME FELL TO 6047 MILLION SHARES FROM 7604 MILLION SHARES A DAY EARLIER THOUGH A SPECIFIC CULPRIT FOR THE SELLOFF COULDN'T BE IDENTIFIED THE MARKET'S RECENT INABILITY TO PUSH THE FT 100 UP THROUGH 2900 WAS BELIEVED TO BE MAKING SOME INVESTORS DOUBTFUL BRITISH POLITICAL WORRIES CONTINUED AS THE RULING CONSERVATIVE PARTY FACES THE PROSPECT OF DEFEAT IN A JULY 29 BYELECTION WHICH WOULD FURTHER ERODE ITS TINY MAJORITY IN PARLIAMENT AND THE GOVERNMENT'S FAILURE TO WIN EASY APPROVAL FOR THE EUROPEAN COMMUNITY UNIFICATION TREATY ALSO WAS FURTHER DAMAGING PUBLIC CONFIDENCE IN PRIME MINISTER JOHN MAJOR INVESTORS SEEMED NERVOUS ABOUT STEERING THE LONDON MARKET TOO MUCH HIGHER WITHOUT MORE EVIDENCE THAT BRITAIN'S NASCENT ECONOMIC RECOVERY IS FIRMLY ESTABLISHED RECENT GOOD NEWS ON THE ECONOMY HAS BEEN LARGELY IGNORED PARTLY BECAUSE THE OUTLOOK FOR CORPORATE EARNINGS IS SHAKY IF A STRONG RECOVERY DOESN'T MATERIALIZE LONDON BANKING SHARES PLUMMETED ON A MAJOR LONDON BROKERAGE HOUSE'S DOWNGRADE OF THE SECTOR TO NEUTRAL FROM OVERWEIGHT AND PROFITTAKERS MOVED IN CONSUMER PRODUCTS SHARES WERE HURT BY PRICE CUTS IN THAT SECTOR OF THE US IN FRANKFURT THE DAX 30STOCK INDEX ROSE 270 POINTS TO 183899 RECOVERING FROM AN INTRADAY LOW OF 183188 PARTICIPANTS NOTED A TREND TOWARD A MARKET ROTATION WITH INVESTORS SWITCHING OUT OF AUTO SHARES AND INTO UTILITIES WHICH MAY INDICATE A COMING CONSOLIDATION AFTER A TWOWEEK RALLY AS UTILITY SHARES ARE USUALLY THE LAST TO BENEFIT FROM A RALLY IN ZURICH STOCKS TUMBLED ACROSS THE BOARD IN HECTIC DEALINGS PRICES WERE LITTLE CHANGED INITIALLY BUT BEGAN TO DROP IN AN EXPECTED TECHNICAL CORRECTION FOLLOWING GAINS OF THE PAST FEW WEEKS LATER IN THE SESSION A GROWING NUMBER OF PARTICIPANTS DECIDED TO LIQUIDATE LARGE POSITIONS PUTTING ADDITIONAL PRESSURE ON THE MARKET FOOD STOCKS FELL ON DEEPENING WORRIES THAT BRANDED PRODUCTS GLOBALLY ARE COMING UNDER PRESSURE FROM PRICE CUTS AND DISCOUNTED RIVAL GOODS DEEP DROPS ALSO WERE RECORDED IN THE BANKING INSURANCE AND CHEMICAL ARENAS PARIS STOCKS WEAKENED IN LIGHT TRADING WITH COMPUTERDRIVEN PROGRAM SELLING OF SOME BLUE CHIPS DRIVING THE OVERALL MARKET LOWER AMSTERDAM PRICES DROPPED BROADLY ON NEWS OF US CORPORATE PLANS FOR FURTHER CUTS IN PRICES OF CONSUMER PRODUCTS THE DUTCH CONSUMER PRODUCTS SECTOR PLUNGED DEEPENING THE ALREADY SUBSTANTIAL STOCK PRICE DECLINES IN THE SECTOR IN THE PAST COUPLE OF MONTHS AS IT BECAME CLEARER THAT THE GLOBAL CONSUMERPRODUCTS INDUSTRY IS FACED WITH DEBILITATING PRICE WARS IN MILAN STOCKS ROSE SOLIDLY ON STRENGTH IN AUTO AND OTHER INDUSTRIAL SHARES ON OPTIMISM THAT ITALIAN UNIONS WILL APPROVE A LABOR ACCORD AND MADRID EQUITIES CLIMBED SHARPLY BOOSTED BY HOPES FOR AN EASING IN GERMAN INTEREST RATES THAT COULD LEAD TO A DECLINE IN SPANISH RATES STOCKHOLM SHARES ROSE FOR THE 11TH CONSECUTIVE SESSION DESPITE DECLINES FOR MARKET LEADERS IN THE TELECOMMUNICATIONS AND PHARMACEUTICAL SECTORS THE FIRM US DOLLAR SUPPORTED MOST SWEDISH EXPORTORIENTED STOCKS AND ALLOWED THE OVERALL MARKET TO ADVANCE SYDNEY SHARES ROSE BUOYED BY BUYING BY OVERSEAS AND DOMESTIC INVESTORS IN HONG KONG FOLLOWING A DAY OF TALKS ABOUT THE BRITISH COLONY'S POLITICAL FUTURE SHARES REBOUNDED LATE IN THE SESSION TO FINISH HIGHER TAIPEI PRICES SLIPPED ON THE LOWEST VOLUME SINCE LATE JANUARY AS MANY INVESTORS WERE ON VACATION MANILA STOCKS SURGED 18 IN MODERATELY HEAVY VOLUME AS THE MARKET DREW STRENGTH FROM DOLLARSENSITIVE STOCKS LEADING BLUE CHIPS UP AMONG CORPORATE DEVELOPMENTS IN LONDON SMITHKLINE BEECHAM ROSE 3 PENCE TO 419 PENCE 628 THE PHARMACEUTICAL COMPANY'S SECONDQUARTER PRETAX PROFIT ROSE 18 TO 294 MILLION 4406 MILLION FROM A YEAR EARLIER IN FRANKFURT SIEMENS ADDED 350 MARKS TO 660 MARKS 38676 THE ELECTRONICS COMPANY'S GROUP PROFIT FOR THE FIRST NINE MONTHS ENDED JUNE 30 ROSE 1 TO 132 BILLION MARKS 7759 MILLION IN LINE WITH ANALYSTS' EXPECTATIONS 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 9307210071 930721 LAW GINSBURG VOWS CAUTIOUS INTERPRETATION OF CONSTITUTIONAL RIGHTS IF CONFIRMED BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RUTH BADER GINSBURG SAID THAT IF CONFIRMED AS A SUPREME COURT JUSTICE SHE WOULD INTERPRET CONSTITUTIONAL RIGHTS CAUTIOUSLY NOT EXPANSIVELY AS SOME LIBERAL DEMOCRATS URGED IN THE FIRST DAY OF HER CONFIRMATION HEARINGS BEFORE THE SENATE JUDICIARY COMMITTEE JUDGE GINSBURG POINTEDLY WARNED THAT AN OVERLY AGGRESSIVE HIGH COURT COULD ERODE LEGISLATIVE AUTHORITY AND TRUNCATE HEALTHY POLITICAL DEBATE ONE ILLUSTRATION OF HER VIEW CAME WHEN SHE REITERATED HER CRITICISM OF THE SUPREME COURT'S 1973 DECISION IN ROE VS WADE WHICH ESTABLISHED BROAD CONSTITUTIONAL PROTECTION FOR THE RIGHT TO ABORTION THE NOMINEE DEFENDED HER PAST ASSERTION THAT BY ISSUING A SWEEPING RULING THE HIGH COURT MAY HAVE INADVERTENTLY ARRESTED A TREND TOWARD A LOOSENING OF ABORTION RESTRICTIONS BY STATE LEGISLATURES ACCESS TO ABORTION WOULD HAVE BECOME MORE WIDESPREAD AND SECURE IF IT WERE BASED ON POLITICAL COMPROMISE RATHER THAN JUDICIAL FIAT ACCORDING TO THIS THEORY WITHOUT BACKING OFF HER GENERAL ASSERTION JUDGE GINSBURG ACKNOWLEDGED UNDER QUESTIONING HOWEVER THAT HER CONTROVERSIAL ANALYSIS WAS A MATTER OF SPECULATION AND MAY BE INCORRECT THE NOMINEE FENCED POLITELY WITH MEMBERS OF THE COMMITTEE DISTINGUISHING HER ROLE AS A PIONEERING WOMEN'SRIGHTS LITIGATOR IN THE 1970S FROM THAT OF A JURIST I COME TO THIS PROCEEDING TO BE JUDGED AS A JUDGE NOT AS AN ADVOCATE SHE SAID JUDGE GINSBURG CAREFULLY AVOIDED COMMITTING HERSELF TO PARTICULAR POSITIONS ON CONTENTIOUS ISSUES DESPITE BEING ASKED QUESTIONS ON TOPICS SUCH AS HIRING POLICIES FAVORING MINORITIES OR WOMEN THE DEATH PENALTY AND PUBLIC SUPPORT FOR PAROCHIALSCHOOL EDUCATION YESTERDAY'S PROCEEDINGS WERE A DEPARTURE FROM THE TURMOIL OF RECENT SUPREME COURT NOMINATIONS AS MEMBERS OF BOTH PARTIES PRAISED JUDGE GINSBURG'S SUCCESS AS A LAWYER AND HER MODERATION AS A JUDGE THE HEARINGS ARE EXPECTED TO LAST AT LEAST THROUGH FRIDAY BARRING SURPRISE REVELATIONS THE NOMINEE APPEARS LIKELY TO RECEIVE OVERWHELMING APPROVAL BY THE COMMITTEE AND THE FULL SENATE SHE WOULD BE ONLY THE SECOND WOMAN TO JOIN THE HIGH COURT AND THE FIRST JUSTICE IN A QUARTERCENTURY CHOSEN BY A DEMOCRATIC PRESIDENT JUDGE GINSBURG HONORED PAST FEMINIST LEADERS AND SPOKE BLUNTLY OF HER OWN EXPERIENCES WITH SEX DISCRIMINATION SHE ALSO SUGGESTED THAT AT TIMES THE SUPREME COURT HAS BEEN JUSTIFIED IN ACTING DRAMATICALLY TO STRIKE DOWN ACTIONS OF ELECTED OFFICIALS FOR INSTANCE IN 1954 WHEN IT SAID FOR THE FIRST TIME THAT OFFICIAL SEGREGATION IN PUBLIC SCHOOLS IS UNCONSTITUTIONAL BUT TO THE MILD FRUSTRATION OF COMMITTEE CHAIRMAN JOSEPH BIDEN OF DELAWARE JUDGE GINSBURG DIDN'T CLEARLY EXPLAIN WHEN SHE WOULD CONSIDER SUCH DECISIONS PROPER THE RANKING REPUBLICAN ON THE COMMITTEE SEN ORRIN HATCH OF UTAH CAUGHT JUDGE GINSBURG BY SURPRISE WHEN HE CONCLUDED HIS INITIAL INTERROGATION BY CITING HER OWN HIRING RECORD AS A FEDERAL JUDGE IN DOCUMENTS SUBMITTED TO THE COMMITTEE SHE SAID SHE HAS HIRED 57 LAW CLERKS INTERNS AND SECRETARIES BUT NO BLACKS THIS DIDN'T DEMONSTRATE DISCRIMINATION THE SENATOR QUICKLY ADDED BUT HE CONTINUED NEITHER SHOULD BUSINESSES NECESSARILY BE FOUND TO HAVE DISCRIMINATED BASED ON STATISTICS WITHOUT DIRECT EVIDENCE OF INTENTIONAL BIAS THE SUPREME COURT HAS LONG INTERPRETED FEDERAL CIVILRIGHTS LAWS TO ALLOW LAWSUITS BASED ON INFERENCES DRAWN FROM STATISTICS JUDGE GINSBURG DIDN'T ADDRESS THE LEGAL ISSUE RAISED BY SEN HATCH BUT SHE SAID I HAVE TRIED TO HIRE BLACK LAW CLERKS AND I AM GOING TO TRY HARDER SHE ESCAPED THE AWKWARD SITUATION BY NOTING DRYLY THAT SHE MIGHT HAVE MORE SUCCESS IN SNARING SOUGHTAFTER BLACK LAW CLERKS IF SHE IS CONFIRMED AS A HIGH COURT JUSTICE ON OTHER BUSINESSRELATED ISSUES JUDGE GINSBURG DEFENDED HER POSITIONS ON THE APPEALS COURT IN ANTITRUST AND LABOR CASES LIBERAL DEMOCRATIC SEN HOWARD METZENBAUM OF OHIO CHALLENGED HER VOTE ENDORSING A RULING THAT REJECTED ALLEGATIONS THAT A MOVINGVAN COMPANY ILLEGALLY TERMINATED SOME OF ITS REGIONAL AGENTS IN AN EFFORT TO STIFLE COMPETITION JUDGE GINSBURG SAID THE RESULT OF THE CASE WAS CORRECT ALTHOUGH SHE DIDN'T AGREE WITH ALL OF THE REASONING OF THE MAJORITY OPINION WHICH WAS WRITTEN BY FORMER JUDGE ROBERT BORK FOR A MORE ACCURATE PERSPECTIVE ON HER OWN VIEWS ON ANTITRUST LAW JUDGE GINSBURG POINTED TO A DISSENT SHE WROTE FROM A 1989 RULING THAT UPHELD THE JUSTICE DEPARTMENT'S APPROVAL OF A JOINT OPERATING AGREEMENT BETWEEN DETROIT'S TWO MAJOR NEWSPAPERS SHE WROTE THAT SHE DIDN'T BELIEVE THE CONTENTION THAT ONE OF THE PAPERS WOULD HAVE FAILED ON ITS OWN ON LABOR LAW SHE REFUSED TO BACK OFF FROM TWO OPINIONS THAT HAVE ALARMED UNIONS ONE LIMITED LEGAL PROTECTIONS FOR UNIONS THAT DON'T REPRESENT A MAJORITY OF A COMPANY'S EMPLOYEES EVEN IN CASES WHERE THE COMPANY ACTS IN A THREATENING AND OUTRAGEOUS FASHION THE OTHER FAVORED A RESTAURANT OPERATOR WHO CALLED POLICE TO ARREST TRESPASSING UNION PROTESTERS WHO WERE HANDING OUT LEAFLETS 9307210070 930721 STORMY WEATHER FARMS FAR FROM FLOOD SEE THE DELUGE OF RAIN RUIN CROPS LIVELIHOOD IN LAKEFIELD MINN WEEDS SMOTHER CROPS TRACTORS STAND IDLE IN THE MUCK A PLEDGE TO NOAH IS RECALLED BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL LAKEFIELD MINN IN A WOODEN LUTHERAN CHURCH ON A HILL OUTSIDE THIS RURAL TOWN SILVERHAIRED FARMERS AND THEIR FAMILIES SING THIS DESOLATE MARINERS' HYMN PASTOR BRAD VIKEN THEN TELLS THE WORRIED FLOCK THE STORY OF GOD'S PROMISE TO NOAH TO NEVER AGAIN DESTROY THE WORLD BY FLOOD WE KNOW YOU ARE A GOD OF YOUR WORD SAYS MR VIKEN KEEP US ABOVE THE WATER LINE THIS COMMUNITY OF FARMERS IS MILES FROM A MAJOR BODY OF WATER BUT IT IS DROWNING WHILE THE NATION'S ATTENTION IS FOCUSED ON THE SWOLLEN MISSISSIPPI RIVER AND FLOODRAVAGED DES MOINES A DISASTER OF A DIFFERENT SORT THREATENS WIDER IMPLICATIONS FOR THE ECONOMY PARTS OF EIGHT FARMBELT STATES MINNESOTA IOWA NORTH DAKOTA SOUTH DAKOTA MISSOURI NEBRASKA ILLINOIS AND WISCONSIN ARE SO WET THAT EIGHT MILLION ACRES WEREN'T PLANTED THIS SPRING OR ARE UNDER WATER AND CROPS ON ANOTHER 12 MILLION ACRES ARE STUNTED PRELIMINARY ESTIMATES OF CROP DAMAGE SO FAR APPROACH 2 BILLION RECORD RAINS SO FAR THIS YEAR HAVE WASHED OUT FIELDS AND TURNED CREEKS INTO RIVERS RIVERS INTO LAKES THE GROUND IS SO SATURATED THAT FLASH FLOODS STRIKE TOWNS THAT HAVE NO RIVERS GRAVEDIGGERS CAN'T BURY THE DEAD GOLF COURSES ARE A WATER HAZARD SOME SWIMMING POOLS ARE UNDER WATER LITTLE LEAGUE TEAMS HAVE TO SEARCH FOR DRY FIELDS NO BREAK IN THE RAINY WEATHER IS FORECAST THE FLAT HORIZON AROUND THIS SOUTHWESTERN MINNESOTA COMMUNITY OF 1697 IS POCKMARKED WITH WATER THE CORN AND SOYBEAN CROPS ARE STUNTED WHILE WEEDS FLOURISH GORGED ON WATER THE TREE LINES ARE DARK GREEN THE DITCHES LUSH WITH WILD PURPLE THISTLE AND YELLOW MUSTARD FLOWERS IT WILL BE WEEKS BEFORE THE GOVERNMENT CAN ACCURATELY GAUGE THE SIZE OF THE AUTUMN HARVESTS AND WHAT THAT MEANS FOR FOOD INFLATION AND GRAIN EXPORTS SO FAR GRAIN TRADERS HAVE TRIMMED THEIR CORNAND SOYBEANHARVEST FORECASTS BY ONLY 9 OR SO IN PART BECAUSE STATES LIKE OHIO AND INDIANA ARE ENJOYING IDEAL GROWING WEATHER AND COULD SEE BUMPER CROPS LOOKING SOUTH BUT THE MAGNITUDE OF THE DAMAGE ALREADY IS BECOMING CLEAR ON THE FARMS AROUND LAKEFIELD THE GROWING SEASON ENDS FIRST HERE IN THE NORTHERN FRINGE OF THE CORN AND SOYBEAN BELTS SO IF THE RAINS CONTINUE PROGRESSIVELY MORE FARMERS TO THE SOUTH ALSO WILL RUN OUT OF TIME THE MIDWEST HAS NEVER HAD TO DEAL WITH SUCH A DELUGE SINCE THE DAWN OF CHEMICAL AND MECHANIZED FARMING ABOUT 50 YEARS AGO THE GENETIC TECHNOLOGY SPAWNING DROUGHTRESISTANT CROPS CAN DO LITTLE ABOUT TOO MUCH RAIN THE UNDERGROUND TILES THAT DRAIN FARM FIELDS ARE OVERLOADED CHEMICAL FERTILIZERS AND PESTICIDES HAVE WASHED AWAY THE TERRACES THAT PREVENT EROSION ARE CRUMBLING BIG TRACTORS ARE BOGGING DOWN IN THE MUD HALF A CROP SAYS ONE OF 50 FARMERS GATHERED IN A METHODIST CHURCH IN NEARBY WINDOM FOR AN EMERGENCY MEETING OF THE MINNESOTA FARM BUREAU FEDERATION HALF A CROP AND 30 OF THE FIELDS ARE UNDER WATER SAYS A MAN SEATED NEXT TO HIM IT'S TOUGH SLEDDING SAYS ANOTHER MAYBE 20 NEVER GOT PLANTED AS THE LITANY CONTINUES AROUND THE ROOM THE THICKARMED FARMERS BEGIN DROPPING THEIR EYES THEIR CROPINSURANCE POLICIES DON'T COVER UNPLANTED FIELDS AND THE PAYMENTS WILL REIMBURSE ONLY PART OF THEIR LOSSES BANKERS IN SOME SMALL TOWNS ARE ALREADY PREDICTING THAT A SMALL HARVEST WOULD PUSH 10 TO 20 OF THEIR BORROWERS TO THE BRINK OF FAILURE I'VE SEEN NEWSPAPER PICTURES OF DES MOINES FROM EVERY POSSIBLE ANGLE COMPLAINS AL CHRISTOPHERSON THE STATE FARMBUREAU PRESIDENT BUT WE HERE COULD HAVE A CLASSONE DISASTER OF THE LIKES MINNESOTA HAS NEVER SEEN IN A DAIRY BARN A FEW MILES DOWN THE ROAD LORING PASCHKE SITS AT A DESK SURROUNDED BY MILKING TROPHIES HE IS CONSIDERING AUCTIONING OFF HIS COWS THE HIGHESTPRODUCING HERD IN THE COUNTY AND LOOKING FOR A FACTORY JOB THIS IS ALL I'VE DONE FOR 22 YEARS HE SAYS ADJUSTING HIS WIDE BLUE SUSPENDERS WITH TREMBLING HANDS BEFORE THE RAINS CAME THE 47YEAROLD FARMER WAS CONFIDENT HE COULD AFFORD THE INCREASE IN HIS LOAN PAYMENTS SLATED FOR THIS YEAR MR PASCHKE IS ONE OF THOUSANDS OF FARMERS WHOSE DEBT IN THE MID1980S WAS RESTRUCTURED BY FARM CREDIT SERVICES POSTPONED PRINCIPAL IS BEGINNING TO COME DUE AND THE FEDERALLY CHARTERED FARMEROWNED AGRICULTURAL LENDER IS BEGINNING TO REVIEW SOME CASES TO CONSIDER RAIN DAMAGE THE RAINS MEAN HIS MILKING COSTS WILL SOAR HE EXPECTS TO HARVEST ONLY HALF OF THE CORN CROP HE NEEDS TO FEED HIS 60 MILKING HOLSTEINS EACH OF WHICH GENERATES 20000 POUNDS OF MILK ANNUALLY BUYING THE REST OF THE RATIONS WOULD COST ROUGHLY 30000 THE RAIN IS DRIVING THE FINAL NAIL IN THE THING SAYS MR PASCHKE WHOSE HERD HAS SUPPORTED HIS WIFE AND FOUR CHILDREN ON A NEARBY FARM GARY BAILEY IS CONSIDERING WHETHER TO SELL SOME OF HIS FIELD EQUIPMENT THE THIRDGENERATION FARMER RUNS ONE OF THE LEANEST OPERATIONS IN THE COUNTY HE RENTS LAND INSTEAD OF OWNING USES CHEMICALS SPARINGLY AND IS TRYING NEW TILLAGE TECHNIQUES THAT REDUCE EROSION BUT THE 41YEAROLD FARMER FIGURES THE RAIN IS ERODING THE INVESTMENT HIS FAMILY HAS IN THE FARM OPERATION MANY FIELDS WERE TOO MUDDY TO PLANT THROUGH THE SPRING BUT HE STUBBORNLY KEPT TRYING UNTIL JULY 2 SIX WEEKS AFTER THE SEASON NORMALLY ENDS HE ONLY GAVE UP WHEN HIS 14YEAROLD TRACTOR GOT MIRED IN THREE FEET OF MUD ABOUT 400 ACRES ARE BARREN AND THE CORN THAT DID GET PLANTED BARELY RISES HIGHER THAN HIS COWBOY BOOTS A NORMAL CROP WOULD REACH HIS CHEST BY THIS TIME OF YEAR IT'S TO THE POINT WHERE I'M NOT SURE I WANT TO DO THIS ANYMORE SAYS MR BAILEY LEANING AGAINST THE HANDCLEANED TRACTOR I KNOW A GUY WHO MAKES EIGHT BUCKS AN HOUR IN TOWN AND THAT SURE LOOKS NICE NOW THE WEALTHIER LAKEFIELD FARMERS ALSO ARE WATCHING THEIR PENNIES PORK PRODUCER DARRELL FISCHER HAS SCRAPPED PLANS TO BUILD A 150000 PIG NURSERY THE ACKERMANN FAMILY WON'T REPLACE THE 13YEAROLD COMBINE THAT BROKE DOWN REPEATEDLY DURING LAST YEAR'S HARVEST REALESTATE AGENT STAN SIEVERT EXPECTS FARMLAND PRICES TO DROP ABOUT 200 AN ACRE BY WINTER ENDING A SEVENYEAR RECOVERY THAT WILL HAVE A RIPPLE EFFECT BECAUSE LAND IS THE FARMER'S BIGGEST ASSET A DROP ERODES BORROWING POWER FALLING LAND VALUES ALSO MEAN LOWER RENT WHICH GIVES LANDLORDS IN TOWN LESS MONEY AND SIGNALS LOWER TAX REVENUE THE GRIM OUTLOOK IS SENDING A CHILL THROUGH THIS MINNESOTA FARMING TOWN WHERE THERE AREN'T ANY BARS ON MAIN STREET AND A NIGHT OUT MEANS THE FOURLANE BOWLING ALLEY OR THE VETERANS OF FOREIGN WARS HALL I SENSE A LOT OF STRESS SAYS PASTOR GERALD MENK WHO HEADS ANOTHER LUTHERAN CHURCH IN TOWN I'M GETTING ASKED WHETHER THIS IS PUNISHMENT FOR SOMETHING BEFORE THE FARM CRISIS OF THE MID'80S THE TOWN HAD FOUR HARDWARE STORES NOW THE OWNERS OF THE SURVIVING COASTTOCOAST SHOP ARE WORRIED BECAUSE FARMERS AREN'T BUYING PAINT AND PARTS FOR SUMMER REPAIR WORK ALL OF OUR SAVINGS ARE IN THIS STORE AND THERE'S NO WAY TO GET IT OUT SAYS CAROL FRANTSEN HER HUSBAND DEAN NODS IN AGREEMENT DOWN THE STREET THE MANAGER OF THE COOP AGRICULTURE CENTER PONDERS WHETHER TO STOP EXTENDING CREDIT BECAUSE SO MANY FARMERS ARE FALLING BEHIND HE FRETS THAT BOARD MEMBERS WANT TO TRIM THE 16EMPLOYEE PAYROLL THE COOP WILL LOSE MONEY THIS YEAR BECAUSE CUSTOMERS WHO COULDN'T GET INTO THEIR WET FIELDS ARE RETURNING SEED FERTILIZER AND PESTICIDES THAT MEANS THE COOP'S 1000 MEMBERS WON'T GET A PATRONAGE CHECK TO SPEND AROUND TOWN THIS THE FIRST FINANCIAL DISASTER TO HIT OUR COOP SAYS JEROME MILBRATH TUGGING AT THE COLLAR OF HIS KHAKI SHIRT ON THE WINDOW BY HIS DESK IS TAPED A CARTOON OF A FISH IN A FOOD BLENDER WITH THE CAPTION AND YOU THINK THERE'S STRESS IN YOUR LIFE USUALLY THE SILVER LINING TO ANY NATURAL CALAMITY IS RISING CROP PRICES FARMERS WITH CROPS LEFT CAN SELL TO THE LOCAL FARMERS COOP ELEVATOR AT A MARKUP BUT THIS TIME GENERAL MANAGER MIKE HENDRICKSON ISN'T DOING MUCH BUSINESS BECAUSE THE TWOMILLIONBUSHEL COMPLEX IS FULL THE GRAIN HAS BACKED UP BECAUSE BARGE TRAFFIC IS SNARLED BY THE FLOODING MISSISSIPPI ILLINOIS AND MISSOURI RIVERS THE ELEVATOR WHICH BUYS GRAIN FROM FARMERS STORES IT AND SELLS IT TO PROCESSORS WILL EMPTY WHEN TRANSPORTATION RESUMES THEN THE REAL TROUBLE BEGINS FOR MR HENDRICKSON VOLUME IS MUCH MORE IMPORTANT TO AN ELEVATOR THAN PRICE BECAUSE IT MAKES MONEY HANDLING GRAIN IN THIS CASE ABOUT 10 CENTS A BUSHEL THE ELEVATOR WILL LOSE MONEY IF LOCAL CORN FARMERS HARVEST ONLY HALF OF THEIR NORMAL YIELD OF 140 BUSHELS AN ACRE WHEN ASKED WHETHER THAT WOULD MEAN CUTTING HIS STAFF OF 12 MR HENDRICKSON DODGES THE QUESTION HE RECALLS THAT THE 1988 DROUGHT SEEMED TO BREAK FOR HIM THE DAY AFTER HE AND SOME BUDDIES DRANK HEAVILY MAYBE THAT WOULD WORK AGAIN HE SAYS ONE BUSINESS THAT IS BOOMING IS A 50ANHOUR TOWING SERVICE IN A NORMAL GROWING SEASON HAGE OIL CO'S WRECKER RESCUES A DOZEN TRACTORS FROM THE MUCK SO FAR THIS YEAR THE EXTRACTIONS HAVE HIT 100 AND ARE RISING I DON'T REMEMBER IT EVER BEING THIS BAD SAYS DARREL HAGE 65 WHO ALSO OWNS THE BOWLING ALLEY AND POOLROOM WE SELL FUEL AND TRACTOR TIRES AND I KNOW WE'RE GOING TO GET STUCK HE SAYS FARMERS ARE MOSTLY FRUSTRATED THAT GRAIN PRICES HAVEN'T RISEN HIGHER TO ACCOUNT FOR THE DAMAGE THEY SEE AROUND THEM GRAIN TRADERS AND AGRICULTURE DEPARTMENT ECONOMISTS HAVE A LOT MORE EXPERIENCE CALCULATING DAMAGE FROM TOO LITTLE RAIN A DROUGHT HITS ABOUT EVERY SEVEN YEARS THAN TOO MUCH BASED ON LOCAL PRICES SO FAR MANY FARMERS HERE EXPECT TO LOSE ROUGHLY 100 FOR EACH ACRE PLANTED WITH CORN BUT FARM GROUPS WON'T KNOW HOW MUCH DISASTER AID TO PURSUE UNTIL THE DAMAGE BECOMES CLEAR AT HARVEST FARMERS WORRY THAT THE NATION'S CONCERN WILL HAVE SHIFTED BY THEN I USED TO LOVE HEARING THE RAIN ON THE ROOF AT NIGHT YOU KNOW RAIN MAKES GRAIN SAYS DAVID ACKERMANN A 63YEAROLD WHO FARMS WITH HIS TWO SONS NOW I ROLL AROUND IN BED WORRYING ABOUT LOAN PAYMENTS A FLOOD IS WORSE THAN A DROUGHT HE THEORIZES WHILE DRIVING THROUGH THE COUNTY IN A BLUE PICKUP FARMERS CAN AT LEAST STAY BUSY IN A DROUGHT SPRAYING AND CULTIVATING THEIR FIELDS AND WITH NEW PLANT STRAINS JUST A FEW SHOWERS MORNING DEW AND SOME HUMIDITY CAN SAVE THE CROP THIS YEAR THE RAIN COMES SO OFTEN THAT FARMERS CANNOT GET IN THEIR FIELDS EVERYBODY ELSE'S LOOKS JUST AS BAD AS THIS HE SAYS DEFENSIVELY AS HE STOPS ALONGSIDE A FIELD CHOKED WITH WEEDS THE STORMS HAVE POUNDED THE GROUND SO FIERCELY THAT THE SOIL IS AS HARD AS A BOARD MR ACKERMANN GRUNTS AS HE UNEARTHS A CORN PLANT BY NOW THE ROOTS ARE NORMALLY FOUR FEET LONG TO TAP MOISTURE DEEP IN THE SOIL BUT THEY HAVE GROWN JUST INCHES BECAUSE THE SURFACE IS ALWAYS MOIST THAT MAKES THE PLANT VULNERABLE TO WIND OR A SUDDEN DRY SPELL PATCHES OF THE FIELD ARE A SICKLY YELLOW WHERE WATER HAS LEACHED AWAY FERTILIZER NORMALLY THIS LAND WOULD BE IN THE THROES OF POLLINATION AT THIS RATE HOWEVER THE PLANTS WON'T BE READY FOR REPRODUCTION UNTIL AUGUST EVEN WITH NORMAL WEATHER THERE ISN'T ENOUGH TIME FOR THE EARS OF CORN TO MATURE BEFORE THE PLANTS ARE KILLED BY THE USUAL FROST IN EARLY OCTOBER THE AUTHORITY MOST FARMERS ARE TURNING TO IS JIM NESSETH THE JACKSON COUNTY AGRICULTURALEXTENSION AGENT THE PHONE IN HIS LAKEFIELD OFFICE RINGS CONSTANTLY AND FARMERS CALL HIS HOME THROUGHOUT THE NIGHT BUT HIS OFFICIAL ADVICE IS PRIMARILY BASED ON A UNIVERSITY OF MINNESOTA MANUAL WRITTEN FOR THE 1988 DROUGHT FOR FARMERS WHO CAN'T STAND BARE FIELDS MR NESSETH SUGGESTS THEY EXPERIMENT WITH QUICKGROWING CROPS SUCH AS BUCKWHEAT OR MILLET BUT HE IS REALISTIC MOST FARMERS AROUND HERE UNDERSTAND ONLY CORN AND SOYBEANS MOSTLY THEY JUST NEED SOMEONE TO TALK TO SAYS THE LIFELONG RESIDENT AND FORMER FARMER AND THERE'S NOT A WHOLE LOT I CAN TELL THEM 9307210069 930721 BRITISH PETROLEUM CHINA VENTURE LONDON BRITISH PETROLEUM CO SAID IT SIGNED A JOINTVENTURE AGREEMENT WITH SINGAPORE'S HONG LEONG INDUSTRIES BHD AND CHINA'S FUZHOU GAS CORP TO DEVELOP A US155 MILLION LIQUEFIED PETROLEUM GAS PLANT IN FUZHOU WHICH IS THE CAPITAL OF CHINA'S SOUTHERN PROVINCE OF FUJIAN BP SAID CONSTRUCTION OF A WATERSIDE STORAGE TERMINAL AND BOTTLING PLANT WILL BEGIN AFTER AN OFFICIAL BUSINESS LICENSE IS GRANTED AND WILL TAKE 18 MONTHS TO COMPLETE BP AND HONG LEONG A DIVERSIFIED CONGLOMERATE WILL JOINTLY OWN 67 OF THE VENTURE TO BE CALLED BP HONG LEONG FUJIAN ENTERPRISE LTD WITH THE REMAINING 33 HELD BY FUZHOU GAS WHICH IS A MUNICIPAL GAS COMPANY 9307210068 930721 BUSINESS BRIEF INTELLICALL INC JUDGE PRELIMINARILY CLEARS CLASSACTIONSUIT SETTLEMENT INTELLICALL INC DALLAS SAID US DISTRICT COURT JUDGE JORGE SOLIS IN DALLAS PRELIMINARILY APPROVED A SETTLEMENT OF A CLASSACTION LAWSUIT AGAINST THE COMPANY AND HAS SET A SEPTEMBER HEARING TO CONSIDER WHETHER THE SETTLEMENT IS FAIR THE TELECOMMUNICATIONS COMPANY WAS SUED IN 1991 BY SHAREHOLDERS WHO ALLEGED THAT FORMER OFFICERS OF THE COMPANY DIDN'T DISCLOSE LOAN DEFAULTS PROMPTLY AND ENGAGED IN IMPROPER SALES PRACTICES IF THE SETTLEMENT IS APPROVED PEOPLE WHO WERE SHAREHOLDERS AT THE TIME OF THE ALLEGED MISDOINGS WILL RECEIVE A TOTAL OF 1 MILLION IN CASH A 900000 PROMISSORY NOTE AND SHARES OF COMMON STOCK WITH A MARKET VALUE OF AT LEAST 61 MILLION THE HEARING IS SET FOR SEPT 22 AT 3 PM CDT 9307210067 930721 INTERNATIONAL BRIEF SIEMENS AG GROUP NET PROFIT ROSE 1 DURING FISCAL NINE MONTHS GERMAN ELECTRONICS GIANT SIEMENS AG SAID ITS GROUP NET PROFIT ROSE 1 IN THE FISCAL NINE MONTHS ENDED JUNE 30 TO 1324 BILLION MARKS 7759 MILLION WHILE WORLDWIDE SALES ROSE 15 TO 333 BILLION MARKS THE COMPANY ALSO SAID THAT ALTHOUGH ITS TOTAL GROUP ORDERS DECLINED 51 TO 599 BILLION MARKS FOREIGN ORDERS FINALLY BEGAN TO RISE AGAIN TO 333 BILLION MARKS FROM 328 BILLION MARKS IN THE SAME PERIOD LAST YEAR DOMESTIC ORDERS PLUNGED 12 SIEMENS REPORTED TO 266 BILLION MARKS FROM 303 BILLION MARKS IN THE FIRST NINE MONTHS A YEAR EARLIER HOWEVER THE COMPANY CAUTIONED THAT THE PREVIOUSYEAR FIGURES WERE LARGER THAN USUAL DUE TO SOME LARGE ORDERS FOREIGN SALES FIGURES ALSO SHOWED GREATER IMPROVEMENT THAN DOMESTIC SALES THE COMPANY SAID DOMESTIC SALES FELL 31 OR 800 MILLION MARKS TO 251 BILLION MARKS WHILE FOREIGN SALES ROSE 55 OR 16 BILLION MARKS TO 307 BILLION MARKS THE TRANSPORTATION TECHNOLOGY ENERGY GENERATION AND COMPONENT UNITS SHOWED THE GREATEST SALES GROWTH RATES SIEMENS REPORTED 9307210066 930721 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL MULTINATIONAL CORPORATIONS FIND NEGOTIATED IRS PACTS PREVENT COSTLY AUDITS TRANSFER PRICING THE PROPER ALLOCATION OF INCOME AND COSTS IN TRANSACTIONS BETWEEN INTERNATIONAL AFFILIATES IS AMONG THE MOST COMPLEX ISSUES BEDEVILING COMPANIES AND THE IRS IT UNDERLIES MOST CHARGES THAT FOREIGN CONCERNS DON'T PAY ENOUGH US TAXES BUT A YOUNG PROGRAM IN WHICH US AND FOREIGNOWNED COMPANIES MAKE ADVANCE PRICINGMETHOD AGREEMENTS WITH THE IRS TO HEAD OFF AUDITS HAS BEEN A SUCCESS FOR BOTH SIDES AN AMERICAN BAR ASSOCIATION TASK FORCE SAYS THE PROCESS IS FAIR EXPEDITIOUS AND FAR LESS COSTLY THAN AN AUDIT LET ALONE LITIGATION ADDS STEVEN HANNES OF DELOITTE & TOUCHE CPAS WHO NEGOTIATED A RECENT PACT FOR AN UNIDENTIFIED FOREIGN CLIENT SUCH AGREEMENTS CAN HELP FOREIGN COMPANIES DEFEND THEIR TAX STATUS AGAINST POLITICAL PRESSURES HERE SO FAR THE IRS SAYS IT HAS AGREEMENTS WITH 16 US AND FOREIGNOWNED COMPANIES IS WORKING ON 38 MORE AND HAS HAD PRELIMINARY TALKS ABOUT ANOTHER 50 HUNDREDS OF COMPANIES PERHAPS OVER A THOUSAND ARE POTENTIAL CANDIDATES FOR ADVANCE AGREEMENTS HANNES SAYS USING THE W2 TO GATHER DATA ON MEDICAL INSURANCE IS OPPOSED BY BUSINESSES ANOTHER DISTRACTING BATTLE FOR EMPLOYERS DURING THE TAXBILL CONFERENCE CONCERNS ANNUAL W2 WAGE REPORTS THEY SEND TO EMPLOYEES AND THE IRS EFFECTIVE APRIL 1 1995 THE PROPOSAL WOULD REQUIRE W2S TO SHOW WHETHER GROUP HEALTH COVERAGE IS AVAILABLE AND IF SO WHETHER EMPLOYEES HAVE CHOSEN INDIVIDUAL OR FAMILY COVERAGE THE PURPOSE IS TO COLLECT DATA FOR USE IN BLOCKING MEDICARE ABUSES BY EMPLOYEES OVER AGE 65 AS INNOCUOUS AS THAT SOUNDS OPPONENTS SAY IT WOULD IMPOSE A COSTLY AND UNNECESSARY REPORTING BURDEN THE AMERICAN PAYROLL ASSOCIATION WHICH REPRESENTS EXECUTIVES RESPONSIBLE FOR REPORTING CONTENDS THAT INFORMATION WOULD HAVE TO BE ADDED TO 200 MILLION W2S TO DEAL WITH AN ISSUE INVOLVING LESS THAN 1 OF THE WORK FORCE THE ASSOCIATION SAYS IT WOULD BE FAR MORE EFFICIENT TO PUT THE INFORMATION ON THE ANNUAL REPORTS FILED BY HEALTHINSURANCE PLANS BIG II A CHILD ACTRESS IS CAST AS AN ADULT TAX DELINQUENT BY HER PARENTS IN 198587 AT THE AGES OF 11 TO 14 SKYE BASSETT EARNED 106734 AS A STAGE AND TV ACTRESS BEING LEGALLY INCAPABLE AS A MINOR SHE FILED NO RETURNS NOR DID HER PARENTS MR AND MRS BRUCE BASSETT OF NEW YORK FILE FOR HER ALTHOUGH REQUIRED TO LEGALLY SO BESIDES UNPAID TAXES THE IRS SOUGHT PENALTIES FOR FAILURE TO FILE AND NEGLIGENCE IN 1991 AGED 18 SKYE APPEALED TO THE TAX COURT NOW JUDGE COLVIN SAYS THE PENALTIES MUST BE PAID AND PAID BY SKYE THE PARENTS NOT SKYE WERE NEGLIGENT THE JUDGE SAID AND HAD NO REASONABLE CAUSE NOT TO FILE FOR HER YET HE HELD THE LAW IMPUTES THE PARENTS' CONDUCT TO THE CHILD THAT IS A STEP BACKWARD FROM A COURSE SUGGESTED IN A 1985 SUPREME COURT FOOTNOTE THAT THE JUDGE REJECTED SAYS DONALD ALEXANDER A WASHINGTON LAWYER THE NOTE SAID AN INCAPABLE PERSON MIGHT NOT BE LIABLE FOR FAILURE TO FILE ANDREW FRADKIN OF ROSELAND NJ SKYE'S LAWYER SAYS A DECISION ON WHETHER TO APPEAL HASN'T BEEN MADE THE NANNY TAX THE SOCIAL SECURITY TAX ON HOUSEHOLD HELP WOULD BE EASED BY A NEW PROPOSAL BY SENATE FINANCE CHIEF MOYNIHAN D NY HE PLANS A HEARING TODAY THE PROPOSAL NOT AIMED AT THE TAXBILL CONFERENCE WOULD RAISE THE TAXABLEPAY THRESHOLD TO 610 A YEAR FROM 50 A QUARTER ALIMONY ALIBIS ARE THE TARGET OF 70000 QUESTIONNAIRES CALIFORNIA IS SENDING TO PEOPLE WHO CLAIMED 900 MILLION IN ALIMONY DEDUCTIONS ON 1990 STATE RETURNS THE STATE HOPES TO RECOVER 10 MILLION BY UNCOVERING EXCESSIVE ALIMONY DEDUCTIONS BY PAYERS AND UNREPORTED INCOME BY RECIPIENTS THE IRS WOULD RECOUP STATES' OVERPAYMENTS OF MEDICAL AID UNDER THE SENATE TAX BILL A STATE WOULD ASK THE IRS TO WITHHOLD TAX REFUNDS AND TURN THEM OVER TO THE STATE TO RETIRE SUCH DEBTS AS ERRONEOUS MEDICAID PAYMENTS TO ABSENT FATHERS PENSION AUDITS WERE MISMANAGED BUT COMPLAINTS WERE OFF BASE THE GAO SAYS A SPECIAL IRS PROGRAM TO AUDIT DEFINEDBENEFIT PENSION PLANS WITH ONE TO FIVE MEMBERS PROVOKED BROAD COMPLAINTS FROM PENSION EXPERTS IN THE 1980S THE IRS LOOKED FOR DEDUCTIONS OF EXCESSIVE CONTRIBUTIONS TO PLANS ACTUARIES CHARGED IT USED FAULTY PREMISES TO GRAB FOR REVENUE LAST YEAR THE IRS LOST THREE TEST CASES IN COURT IT IS APPEALING NOW THE GENERAL ACCOUNTING OFFICE SAYS THE IRS OVERESTIMATED THE PROBLEM UNDERESTIMATED THE COMPLEXITIES AND PLANNED AND RAN THE AUDIT PROGRAM POORLY BUT THE GAO ALSO SAYS IT FOUND LITTLE SUPPORT FOR THE COMPLAINTS THE IRS AIMED AT ABUSES REVENUE WAS A FACTOR BUT NOT THE MAIN GOAL THE IRS CUT ITS REVENUE ESTIMATE TO 168 MILLION FROM 800 MILLION AND MAY GET LESS THE IRS AUDITED MOSTLY PLANS OF HIGHLY PAID PROFESSIONALS DOCTORS AND LAWYERS AND NOT SMALL FAMILY BUSINESSES IT DIDN'T IMPOSE ARBITRARY ACTUARIAL ASSUMPTIONS ON AUDITED PLANS BUT RATHER CONSIDERED EACH CASE'S FACTS SEPARATELY THE GAO ADVISES THE IRS TO CONCENTRATE ON LARGE DEFINEDBENEFIT PLANS THE IRS SAYS IT PLANS TO REVIEW 400 OF THEM BRIEFS TAXRETURN BOOKLETS WOULD HAVE TO INCLUDE A FINANCIAL REPORT FROM THE US GOVERNMENT UNDER THE SENATE TAX BILL SO FAR IN 1993 60 CITIES HAVE INITIATED SALES TAXES AND 139 HAVE RAISED EXISTING ONES RESEARCHERS AT VERTEX INC OF BERWYN PA SAY 12 CITIES REDUCED SALES TAXES 9307210065 930721 BUSINESS BRIEF MAGELLAN PETROLEUM CORP COMPANY FILES COUNTERCLAIM AGAINST SAGASCO HOLDINGS MAGELLAN PETROLEUM CORP BASED IN HARTFORD CONN SAID IT FILED A COUNTERCLAIM AGAINST SAGASCO HOLDINGS LTD WHICH HAS LAUNCHED A HOSTILE TAKEOVER OF MAGELLAN MAGELLAN AN OIL AND NATURAL GAS COMPANY WITH INTERESTS IN AUSTRALIA AND CANADA SAID THAT SAGASCO'S TENDER OFFER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION ARE MISLEADING AND FAIL TO DISCLOSE CERTAIN MATERIAL FACTS MAGELLAN HAS ASKED A FEDERAL COURT IN DELAWARE TO ORDER THE AUSTRALIAN COMPANY TO DISPOSE OF ANY IMPROPERLY ACQUIRED HOLDINGS IN MAGELLAN TO DISGORGE ANY PROFITS DERIVED FROM THEM AND TO RETURN ALL TENDERED SHARES SAGASCO HAS OFFERED 150 A SHARE FOR MAGELLAN VALUING THE COMPANY AT 37 MILLION 9307210064 930721 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA GENERAL MANAGER IS NAMED AT HOLDING COMPANY UNIT FERRUZZIMONTEDISON GROUP SAID IT NAMED STEFANO MELONI GENERAL MANAGER RESPONSIBLE FOR FINANCE MR MELONI 44 YEARS OLD WILL TAKE ON THE RESPONSIBILITIES AT BOTH FERRUZZI FINANZIARIA SPA IN MILAN THE HOLDING COMPANY OF THE AGROCHEMICAL GROUP AND ITS MAIN OPERATING COMPANY MONTEDISON SPA MR MELONI AN ACCOUNTANT BY TRAINING IS CURRENTLY GENERAL MANAGER OF BANCO DI SARDEGNA A LEADING REGIONAL BANK ON THE ISLAND OF SARDINIA HE WILL REPORT DIRECTLY TO ENRICO BONDI MANAGING DIRECTOR OF BOTH FERRUZZI AND MONTEDISON HIS APPOINTMENT IS PART OF A RESHUFFLE AT THE GROUP'S MANAGEMENT AFTER FERRUZZI'S CREDITOR BANKS TOOK EFFECTIVE CONTROL OF FERRUZZIMONTEDISON LAST MONTH WHEN MAJOR FINANCIAL PROBLEMS EMERGED THE BANKS ARE PLANNING A RESTRUCTURING FOR FERRUZZI WHICH IS BURDENED WITH GROSS DEBTS OF AROUND 31 TRILLION LIRE 1960 BILLION 9307210063 930721 OTC FOCUS TECHNOLOGY COMMUNICATIONS STOCKS LIFT INDEX BY 607 TO CLOSE OF 70190 BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HIGHFLYING TECHNOLOGY ISSUES AND SOARING COMMUNICATIONS STOCKS SHOOK OFF PRESSURE FROM WEAKER BONDS THROWING NASDAQ PRICES FIRMLY INTO POSITIVE TERRITORY THE NASDAQ COMPOSITE INDEX JUMPED 607 OR 087 TO END AT 70190 DECLINERS HAD LED ADVANCING STOCKS FOR MOST OF THE DAY BUT SUCCUMBED TO GAINERS AT THE CLOSE THERE WERE 1378 ADVANCERS AND 1372 DECLINERS YESTERDAY'S TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME ROSE TO 219000000 SHARES FROM 198540000 SHARES MONDAY THE TECHNOLOGY SECTOR WAS FINALLY ABLE TO BENEFIT FROM SOME GOOD EARNINGS NEWS AFTER GETTING SOCKED BY A STRING OF DISAPPOINTING EARNINGSRELATED REPORTS IN THE PAST WEEK BMC SOFTWARE SUGAR LAND TEXAS ROCKETED 5 5/8 OR 11 TO 56 1/8 LATE MONDAY THE COMPANY SAID FISCAL FIRSTQUARTER NET INCOME JUMPED TO 69 CENTS A SHARE FROM 51 CENTS A YEAR EARLIER BUT TRADERS SAID THE TECHNOLOGY GROUP WAS ALSO DUE FOR AN UPWARD MOVE THE TECHNOLOGY GROUP HAD A TECHNICAL BOUNCE BECAUSE IT HAD BEEN OVERSOLD SAID JAIME DAVILA SENIOR TRADER AT MABON SECURITIES CORP THERE WAS SOME BOTTOMFISHING BUT HOW LONG THIS WILL LAST IS ANYONE'S GUESS NEW YORK STOCK EXCHANGE SHARES TOOK A WILD RIDE WITH JAUNTS TO BOTH LOWER AND HIGHER GROUND BUT GOOD EARNINGS SAVED THE DAY PUSHING THE DOW JONES INDUSTRIAL AVERAGE UP 950 POINTS OR 027 TO 354478 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 038 POINT OR 015 TO END AT 24771 IN TESTIMONY BEFORE THE HOUSE BANKING SUBCOMMITTEE YESTERDAY MORNING FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID NEWS ON INFLATION THIS YEAR HAS BEEN DISAPPOINTING BONDS FELL IMMEDIATELY FOLLOWING THE TESTIMONY BUT CLAWED THEIR WAY BACK UP BY THE SESSION'S END THE TREASURY'S LONG BOND FINISHED ABOUT AN EIGHTH OF A POINT LOWER BUT UP FROM ABOUT A HALFPOINT DEFICIT EARLIER ITS YIELD REMAINS LOW AT 655 MR DAVILA OF MABON SAID THAT FOR THE MOST PART EARNINGS CONCERNS WERE PUSHED ASIDE IN THE OVERTHECOUNTER MARKET AS INVESTORS SCOOPED UP TECH STOCKS AT LOW PRICES BUT HE SAID CORPORATE PROFIT REPORTS SHOULD BE UPPERMOST IN EVERYONE'S MIND AGAIN TODAY WE'RE GOING TO SEE SOME MORE REAL SELLING INTO THESE TECHNOLOGY ISSUES BECAUSE WE'RE STILL EXPECTING SOME MORE LIGHT EARNINGS MR DAVILA ADDED THE MARKET HAS BEEN ONE OF CROSSCURRENTS LATELY SAID JOHN GIESEA MANAGER OF OTC TRADING AT ADVEST INC THERE WAS SOME SHORT COVERING TODAY WHICH ADDED BUOYANCY SHORT COVERING OCCURS WHEN TRADERS WHO HAD BET ON DECLINING STOCK PRICES ARE FORCED TO PURCHASE SHARES TO COVER THEIR BETS AMONG THE TECHNOLOGY STOCKS THAT SPARKLED YESTERDAY WAS LOTUS DEVELOPMENT OF CAMBRIDGE MASS WHICH ADVANCED 1 3/8 TO 37 3/8 THE SOFTWARE COMPANY SAID IT BACKS THE HIGHER END OF ANALYSTS' SECONDQUARTER EXPECTATIONS FOR INCOME OF 30 CENTS TO 35 CENTS A SHARE BEFORE AN ACQUISITIONRELATED CHARGE LOTUS ALSO SAID ITS CONSULTING SERVICES DIVISION ACQUIRED DATABASE MANAGEMENT SCIENCES A UK SOFTWARE DEVELOPER SPECIALIZING IN CLIENT/SERVER TECHNOLOGY TERMS WEREN'T DISCLOSED CISCO SYSTEMS JUMPED 2 3/4 TO 52 1/4 APPLE COMPUTER RALLIED 1 1/4 TO 26 7/8 AND INTEL ADDED 1 1/8 TO 52 BUT SEMICONDUCTOR STOCK S3 FELL 2 1/4 TO 31 A WALL STREET JOURNAL ARTICLE FOCUSED ON THE SANTA CLARA CALIF COMPANY'S DECISION TO ALLOW SOME BIG SHAREHOLDERS TO SELL PREVIOUSLY RESTRICTED S3 STOCK THE NASDAQ UTILITY INDEX SHATTERED ITS RECORD OF 95557 SET THURSDAY RISING 1805 POINTS OR 19 TO 96314 AMONG ITS COMPONENTS TELECOMMUNICATIONS ENGLEWOOD COLO PAVED THE WAY CLIMBING 1 5/8 TO 24 1/8 THE PROVIDER OF CABLE TELEVISION AND PROGRAMMING SERVICES SAID RATE ROLLBACKS WON'T HURT ITS RESULTS AS MUCH AS IT HAD ANTICIPATED THE COMPANY'S TREASURER REPORTEDLY TOLD ANALYSTS MONDAY THAT HE FORESEES FEDERAL PRICING GUIDELINES REDUCING REVENUE ABOUT 4 ANNUALLY WHILE CUTTING ABOUT 8 FROM CASH FLOW TELECOMMUNICATIONS TOPPED THE MOSTACTIVES LIST WITH VOLUME OF 74 MILLION SHARES MORE THAN TWICE ITS NORMAL TOTAL TELLABS LISLE ILL SOARED 6 TO 40 3/4 LATE MONDAY THE TELEPHONERELATED SIGNALING AND TRANSMISSION SYSTEMS DESIGNER REPORTED SECONDQUARTER NET INCOME OF 33 CENTS A SHARE UP FROM 14 CENTS POSTED A YEAR EARLIER DSC COMMUNICATIONS A PLANO TEXAS TELECOMMUNICATION AND LOCAL AREA NETWORK SYSTEMS DESIGNER ROSE 1 5/8 TO 52 1/8 AFTER REPORTING HIGHERTHANEXPECTED SECONDQUARTER EARNINGS THE COMPANY EARNED 34 CENTS A SHARE IN THE LATEST QUARTER ABOVE THE FIVE CENTS REPORTED A YEAR EARLIER AND THE 27 CENTS ESTIMATED BY ANALYSTS WISCONSIN CENTRAL TRANSPORTATION ROSE 3 1/2 TO 43 THE ROSEMONT ILL PROVIDER OF RAILROAD FREIGHT TRANSPORTATION FORMED A NEW SUBSIDIARY WISCONSIN CENTRAL INTERNATIONAL TO ACQUIRE A STOCK INTEREST IN NEW ZEALAND RAIL LTD AMTECH CORP DALLAS SOARED 4 3/4 OR 25 TO 23 3/4 THE COMPANY'S ALCATEL AMTECH JOINT VENTURE WITH ALCATELALSTHOM HAS HAD ITS RADIO FREQUENCY IDENTIFICATION SYSTEM SELECTED BY THE UNION INTERNATIONALE DES CHEMINS DE FER AS A EUROPEAN RAILROAD STANDARD MARSAM PHARMACEUTICALS SURGED 2 3/4 TO 18 A 52WEEK HIGH AFTER OPPENHEIMER & CO PHARMACEUTICALS ANALYST STEVEN B GERBER INITIATED COVERAGE OF THE CHERRY HILL NJ COMPANY WITH AN ANALYST'S BUY RECOMMENDATION THE NASDAQ INSURANCE INDEX ALSO SET A NEW RECORD AT 88359 UP 466 POINTS OR 053 FROM MONDAY ITS PREVIOUS HIGH OF 87919 WAS SET LAST WEDNESDAY OHIO CASUALTY GAINED 1 TO 64 3/4 UNITED WISCONSIN ADDED 1 TO 26 3/4 AND UNITRIN ADDED 3/4 TO 44 9307210062 930721 BUSINESS BRIEF SPRINT CORP SECONDQUARTER NET INCOME INCREASED 9 TO 157 MILLION SPRINT CORP KANSAS CITY MO REPORTED A 9 INCREASE IN SECONDQUARTER EARNINGS BOOSTED BY A STRONG SHOWING IN EACH OF THE TELECOMMUNICATIONS CONCERN'S BUSINESSES NET INCOME WAS 157 MILLION OR 46 CENTS A SHARE COMPARED WITH 148 MILLION OR 44 CENTS A SHARE A YEAREARLIER THE 1993 PERIOD INCLUDES A CHARGE OF TWO CENTS A SHARE FOR THE EARLY RETIREMENT OF DEBT SPRINT CLEARLY HAS MADE MAJOR IMPROVEMENT IN THE LAST YEAR SAID JACK GRUBMAN ANALYST AT PAINEWEBBER INC THE STOCK MARKET RESPONDED POSITIVELY THE COMPANY'S SHARES ROSE 125 TO CLOSE AT 35 IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PROFIT FROM CONTINUING OPERATIONS ROSE TO 165 MILLION OR 48 CENTS A SHARE FROM 104 MILLION OR 31 CENTS A SHARE REVENUE ROSE 9 TO 28 BILLION WITH LOCAL TELEPHONE REVENUE EXCEEDING 1 BILLION FOR THE FIRST TIME AND CELLULAR OPERATIONS ENJOYING ITS BEST QUARTER OF SUBSCRIBER GROWTH SPRINT SAID 9307210061 930721 MARKETING & MEDIA NATIONAL MEDIA AND ITALIAN TV PHILADELPHIA NATIONAL MEDIA CORP SAID IT WILL SUPPLY HOMESHOPPING PROGRAMS FOR SEVEN TELEVISION STATIONS OF ITALIAN TV GROUP ITALIA 7 NATIONAL MEDIA A PRODUCER OF DIRECTMARKETING TV PROGRAMMING WILL SUPPLY 20 HOURS OF PROGRAMMING WEEKLY THROUGH ITS QUANTUM INTERNATIONAL LTD UNIT THE COMPANY SAID THE PROGRAMS WILL FEATURE PRODUCTS FOR HEALTH AND FITNESS HOUSEHOLD PERSONALCARE AS WELL AS AUTOMOTIVE GOODS 9307210060 930721 INTERNATIONAL BRIEF NKK CORP CONCERN KOBE TO DEVELOP TECHNOLOGY TO MAKE PIG IRON IN AN EXAMPLE OF CORPORATE COOPERATION FORCED BY JAPAN'S ECONOMIC SLOWDOWN NKK CORP AND KOBE STEEL LTD TWO OF THE COUNTRY'S MAJOR STEELMAKERS AGREED TO JOINTLY DEVELOP TECHNOLOGY IN MAKING PIG IRON SPOKESMEN AT THE COMPANIES SAID BY COMBINING TECHNOLOGIES IN WHICH EACH COMPANY SPECIALIZES NKK AND KOBE WILL BE ABLE TO REDUCE COSTS BY SOMEWHERE BETWEEN 500 MILLION YEN 46 MILLION AND 1 BILLION YEN EACH FOR MAKING THE MATERIAL FOR STEEL AN NKK SPOKESMAN SAID IN PRODUCING PIG IRON NKK WILL PROVIDE ITS KNOWHOW IN BURNING POWDERED COAL WHILE KOBE STEEL WILL CONTRIBUTE ITS TECHNOLOGY IN BLOWING COAL INTO FURNACES A LINK BETWEEN STEELMAKERS IN RESEARCH AND DEVELOPMENT IS RARE THE NKK SPOKESMAN SAID BUT THE LATEST MOVE REFLECTS THE URGENT NEED TO CUT COSTS HE SAID 9307210059 930721 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE CLINTON LEADS PR BLITZ TO WIN SUPPORT FOR DEFICIT PLAN AS LAWMAKERS NEGOTIATE BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON LED A PUBLICRELATIONS BLITZ TO EMPHASIZE NOT THE FOG BUT THE FACTS ABOUT HIS DEFICITREDUCTION PLAN AS DEMOCRATIC LAWMAKERS GRAPPLED TO REACH A COMPROMISE THAT CONGRESS CAN PASS THE OFFENSIVE YESTERDAY WAS AT TIMES BITINGLY PARTISAN INTENDED AS IT WAS TO COUNTER REPUBLICAN ATTACKS AGAINST HIS PROGRAM WHICH THE PRESIDENT ACKNOWLEDGED HAD KILLED DEMOCRATS IN A CAPITOL SPEECH TO DEMOCRATS ON THE HOUSESENATE BUDGET CONFERENCE HE SAID OF REPUBLICANS THEY OFFERED MUCH LESS DEFICIT REDUCTION AND YET MORE PAIN TO THE AVERAGE PEOPLE OF THIS COUNTRY REPUBLICANS HE CONTINUED WEREN'T WILLING TO STAND UP AND ASK THE POWERFUL AND PRIVILEGED AND WELLTODO AND SUCCESSFUL TO PAY EVEN THEIR FAIR SHARE IN A WARMUP TO MR CLINTON'S ADDRESS VICE PRESIDENT AL GORE SAID OF REPUBLICANS NONE OF WHOM VOTED FOR EITHER THE HOUSE OR SENATE VERSIONS OF THE CLINTON PLAN THEY DON'T HAVE THE GUTS TO STAND UP TO THE TOUGH DECISIONS MEANWHILE LAWMAKERS WHO ARE DECIDING THE MAIN ISSUES IN THE PACKAGE THOSE DEALING WITH TAXES TENTATIVELY AGREED YESTERDAY THAT THE CORPORATE RATE SHOULD BE RAISED NO HIGHER THAN 35 FROM THE CURRENT 34 BUT THEY DID SO ONLY AFTER TWO DEMOCRATIC SENATORS MAX BAUCUS OF MONTANA AND DAVID PRYOR OF ARKANSAS EXTRACTED THE UNDERSTANDING THAT NO SUCH DECISION WAS FINAL UNTIL THE WHOLE DEFICITREDUCTION PACKAGE WAS AGREED TO THE TWO SENATORS AND SOME HOUSE DEMOCRATS WANT A SLIGHTLY HIGHER CORPORATE RATE TO BE ON THE BARGAINING TABLE AS AN ALTERNATIVE SOURCE OF REVENUES TO AN ENERGY TAX THEY WANT TO KNOCK OUT ANY FORM OF AN ENERGY TAX FROM THE BILL OR LIMIT IT TO A MINIMAL INCREASE IN THE TAX ON GASOLINE AND OTHER TRANSPORTATION FUELS THE TAX NEGOTIATORS ALSO AGREED THAT SEVERAL OTHER ITEMS COMMON TO THE HOUSE AND SENATE BILLS SHOULD BE CONSIDERED SETTLED AMONG THEM ARE PROVISIONS LIMITING BUSINESSES' DEDUCTION FOR EXECUTIVES COMPENSATION TO 1 MILLION ANNUALLY AND PERMANENTLY EXTENDING A TAX CREDIT FOR LOWINCOME HOUSING DEVELOPMENT AND A TAX BENEFIT FOR INDIVIDUALS' DONATIONS OF APPRECIATED PROPERTY SUCH AS ARTWORK THE PROVISIONS ACCOUNT FOR A NET TAX INCREASE OF ABOUT 25 BILLION OVER FIVE YEARS OR ABOUT A TENTH OF THE CLINTON PROGRAM'S TOTAL INCREASE ASKED HIS OPINION THE ASSISTANT TREASURY SECRETARY FOR TAX POLICY LES SAMUELS SAID WE'RE SATISFIED AT THIS POINT WITH THE 35 RATE HE ADDED HOWEVER THAT NOTHING IS SETTLED UNTIL EVERYTHING IS SETTLED TREASURY SECRETARY LLOYD BENTSEN IN AN EARLIER MEETING WITH REPORTERS SAID THE ADMINISTRATION IS FIRMLY BEHIND A TOP CORPORATE TAX RATE OF 35 AS PASSED BY THE HOUSE AND SENATE THE SIZE OF THE CORPORATE RATE AND MORE IMPORTANT THE SIZE AND FORM OF ANY ENERGY TAX ARE CRITICAL TO DEMOCRATS' ABILITY TO REACH MR CLINTON'S GOAL OF 500 BILLION IN DEFICIT CUTS OVER FIVE YEARS THAT GOAL GOT A CRUCIAL ENDORSEMENT YESTERDAY FROM FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WHO TOLD CONGRESS TO STICK TO THAT TARGET OR RISK AN INCREASE IN LONGTERM INTEREST RATES THAT COULD DISRUPT THE ALREADY DISAPPOINTING RECOVERY IF THE MARKETS PERCEIVE THAT WE ARE BACKING OFF THE SIZE OF THE COMMITMENT I THINK THAT THEY WILL REACT APPROPRIATELY NEGATIVELY MR GREENSPAN TOLD THE HOUSE BANKING COMMITTEE THE 500 BILLION PROGRAM IS PROBABLY ABOUT THE RIGHT SIZE RESPONDING TO LEADING QUESTIONS FROM DEMOCRATS WHO SOUGHT WITH A MODICUM OF SUCCESS TO ENLIST THE FED CHAIRMAN IN THE FIGHT FOR THE PRESIDENT'S TAX BILL AND FROM REPUBLICANS WHO TRIED WITH LITTLE SUCCESS TO ENLIST HIM ON THEIR SIDE MR GREENSPAN REJECTED EVERY ARGUMENT OFFERED FOR DELAYING OR REDUCING THE DEFICITCUTTING PLAN IF WE DON'T COME TO GRIPS WITH THIS ISSUE REALISTICALLY NOW WE'LL ALWAYS FIND REASONS NOT TO DO IT HE SAID BUT IN A REPLY THAT PLEASED HIS FELLOW REPUBLICANS MR GREENSPAN ALSO SAID THAT THE DEFICIT CANNOT BE TAMED BY TAX INCREASES UNLESS THE GROWTH OF FEDERAL SPENDING PARTICULARLY ON HEALTH CARE IS RESTRAINED THE DEFICIT WILL REMAIN A PROBLEM HE SAID MR GREENSPAN ALSO SAID THE PROSPECT OF A SIGNIFICANT CREDIBLE DECLINE IN THE BUDGET DEFICIT ALREADY IS AFFECTING THE ECONOMY BOTH POSITIVELY AND NEGATIVELY IT'S CONTRIBUTING TO A SHARP DECLINE IN LONGTERM INTEREST RATES WITH THE YIELD ON 10YEAR GOVERNMENT NOTES FALLING TO A 22YEAR LOW HE SAID BUT HE ADDED THE DEFICITREDUCTION BILL AND THE PROSPECT OF A HEALTHCARE BILL TO FOLLOW APPARENTLY IS LEADING SOME BUSINESSES TO DELAY OR REDUCE SPENDING PLANS AS A CONSEQUENCE OF CONCERNS ABOUT THE EFFECTS OF PENDING TAX INCREASES IN HIS CAPITOL RALLY FOR DEMOCRATS WHICH WAS OPEN TO REPORTERS MR CLINTON EMPHASIZED THAT MOST OF THE PROPOSED TAX INCREASES WOULD HIT THE WEALTHIEST AMERICANS WHILE SMALL BUSINESS WOULD RECEIVE A NUMBER OF BENEFITS REPUBLICANS IN THEIR ATTACKS HAVE HIGHLIGHTED THE TAXES ON SOME SMALL BUSINESSES MR CLINTON REITERATED SUPPORT FOR HIS PROPOSAL TO CUT CAPITALGAINS TAXES FOR NEW INVESTMENTS IN SOME SMALL BUSINESSES WHICH THE HOUSE PASSED BUT THE SENATE DIDN'T AND FOR TAX BREAKS TO ENTICE INVESTORS TO DEPRESSED EMPOWERMENT ZONES PENDING PROPOSALS TO MORE THAN DOUBLE THE CURRENT 10000 ANNUAL WRITEOFF FOR SMALL BUSINESSES' EQUIPMENT PURCHASES COULD MEAN A TAX CUT FOR 90 OF SMALL BUSINESSES HE CLAIMED WHEN MR CLINTON CONTINUES HIS COUNTEROFFENSIVE TODAY HE WILL TRAVEL TO A MARYLAND SUPERMARKET CALLED NICK'S TO CONVERSE BY SATELLITE WITH SMALL BUSINESS OWNERS IN SEVEN CITIES HIS PLAN ALSO WILL BE ENDORSED BY SEVERAL SMALL BUSINESS GROUPS TO COUNTER THE OPPOSITION OF THE LARGEST SUCH ORGANIZATION THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS ALSO MR CLINTON WILL HAVE LUNCH AT THE WHITE HOUSE WITH SEVERAL CHIEF EXECUTIVES OF SMALL BUSINESSES THE PARTISAN TONE OF YESTERDAY'S REMARKS FROM MESSRS CLINTON AND GORE RILED REPUBLICANS THEY MADE THIS A PARTISAN VENTURE FROM THE OUTSET DEMOCRATS ONLY SAID REP RICHARD ARMEY OF TEXAS A MEMBER OF THE HOUSE GOP LEADERSHIP AND SENATE GOP LEADER ROBERT DOLE OF KANSAS CONTINUING HIS CAMPAIGN OF TWEAKING THE DEMOCRATS FOR RAISING TAXES PUT OUT A PRESS RELEASE YESTERDAY PROPOSING THAT FLOOD VICTIMS IN THE MIDWEST BE EXEMPTED FROM PRESIDENT CLINTON'S RECORDSETTING TAX INCREASES AS PART OF THE ADMINISTRATION'S OFFENSIVE DEPUTY TREASURY SECRETARY ROGER ALTMAN MET WITH DEMOCRATIC SENATORS MR ALTMAN AND OTHER TOP ADMINISTRATION ECONOMIC OFFICIALS ALSO MET WITH REPORTERS TO BALLYHOO WHAT HE CALLED THEIR ALLOUT ASSAULT TO PASS THE PACKAGE IN THE COMING WEEKS THIS IS NO TIME TO BLINK THE PRESIDENT TOLD FELLOW DEMOCRATS WE WILL NOT NEED TO ASK THE AVERAGE WORKING FAMILY TO PAY MORE THAN ABOUT 50 A YEAR TO CONTRIBUTE TO THIS PLAN THE EXACT CONTRIBUTION OF AVERAGE AMERICANS WILL DEPEND LARGELY ON THE FINAL ENERGY TAX ADMINISTRATION OFFICIALS AND DEMOCRATIC LEADERS IN CONGRESS CONTINUE TO INSIST THE FINAL PLAN WILL CONTAIN SOME VERSION ALMOST CERTAINLY A FUELSTAX INCREASE OF LESS THAN A DIME A GALLON THE DECISION IS CRITICAL GIVEN THE RAZORTHIN MARGIN BY WHICH THE HOUSE AND SENATE BILLS PASSED A FEW OPPONENTS OF THE HOUSE BILL INCLUDING FRESHMAN REP PAUL MCHALE OF PENNSYLVANIA SAY THEY MIGHT WELL SWITCH AND VOTE FOR THE FINAL PACKAGE IF THE PRESIDENT'S ORIGINAL BROADBASED ENERGY TAX IS OUT BUT THE GASOLINETAX INCREASE BOTHERS OTHER LAWMAKERS ESPECIALLY IN THE ABSENCE OF FURTHER SPENDING CUTS THEY'LL BE HAMMERING GUYS LIKE ME TO VOTE FOR IT AND THEY'LL HAVE A VERY DIFFICULT TIME SAID SEN BOB KERREY OF NEBRASKA WHO RELUCTANTLY VOTED FOR THE SENATE BILL SOME DEMOCRATS CONTINUE TO ARGUE THAT WITHOUT AN ENERGY TAX THEY CAN ARGUE THAT THE PACKAGE DOESN'T HIT WORKING MIDDLECLASS AMERICANS AT ALL SEN PRYOR A FRIEND OF THE PRESIDENT AND A MEMBER OF THE SENATE DEMOCRATIC LEADERSHIP SAID I'M A TEAM PLAYER I'M FOR THE PRESIDENT I'M FOR A FULL PACKAGE OF DEFICIT REDUCTION I JUST THINK WE OUGHT TO LOOK FOR ALTERNATIVES TO THE ENERGY TAX BUT THOSE DEMOCRATS DISAGREE ON WHETHER TO SEEK ADDITIONAL SPENDING CUTS OR HIGHER TAX INCREASES ON THE WEALTHY AND CORPORATIONS AS ALTERNATIVES TO AN ENERGY TAX AND ALTERNATIVE MONEY IS NEEDED TO OFFSET THE COST OF THE INITIATIVES FOR BUSINESSES AND THE WORKING POOR IN THE PACKAGE THAT OTHER DEMOCRATS ARE DEMANDING MEANWHILE THE NATION'S LEADING TRUCKERS' GROUP IS LAUNCHING A CAMPAIGN TO KILL THE PROPOSED GAS TAX THOMAS DONOHUE PRESIDENT OF THE AMERICAN TRUCKING ASSOCIATIONS SAID IN AN INTERVIEW THAT HIS GROUP WHICH HADN'T FOUGHT MR CLINTON'S ORIGINAL PROPOSAL FOR A BROADBASED ENERGY TAX HAS CONCLUDED THAT TRUCKERS ARE GETTING STUCK NOW THAT THE TAX FOCUSES SOLELY ON TRANSPORTATION FUELS DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9307210058 930721 BUSINESS BRIEF HSBC HOLDINGS PLC MARINE MIDLAND PROFIT ROSE 11 IN THE SECOND QUARTER MARINE MIDLAND BANKS INC REPORTED AN 11 INCREASE IN SECONDQUARTER EARNINGS DESPITE A 1277 MILLION WRITEDOWN OF MORTGAGESERVICING RIGHTS THE WRITEDOWN WAS LARGELY COUNTERBALANCED BY A RELEASE OF 115 MILLION IN LOANLOSS PROVISIONS THAT WAS COUNTED TOWARD SECONDQUARTER EARNINGS THE RELEASE REPRESENTS PREVIOUSLY RECORDED LOANLOSS PROVISIONS THAT CAN NOW BE COUNTED TOWARD PROFIT MARINE MIDLAND A UNIT OF HSBC HOLDINGS PLC IS A REGIONAL BANKING INSTITUTION WITH ASSETS OF 17 BILLION BASED IN BUFFALO NY NET INCOME WAS 453 MILLION FOR THE QUARTER UP FROM 41 MILLION FOR THE YEAREARLIER PERIOD THE BANK REPORTED FIRSTHALF EARNINGS ROSE 82 TO 793 MILLION FROM 436 MILLION MARINE MIDLAND SAID THAT LOW INTEREST RATES AND THE RESULTING MORTGAGEREFINANCING BOOM NECESSITATED THE MORTGAGESERVICING WRITEDOWN THE REDUCTION IN LOANLOSS PROVISIONS WAS ATTRIBUTED TO A DECLINE IN NONACCRUING LOANS AND NET COMMERCIAL WRITEOFFS 9307210057 930721 CORPORATE FOCUS MONSANTO EARNINGS SOAR ON RECORD SALES OF ROUNDUP BUT HERBICIDE'S FUTURE MAY BE CLOUDED BY SHIFT IN PLANTING PATTERNS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL MIDWESTERN FARMERS THEIR FIELDS TOO WET TO PLOW BOUGHT MONSANTO CO'S ROUNDUP HERBICIDE BY THE BARREL THIS SPRING TO CLEAR THEIR FIELDS FOR PLANTING IT WILL BE WEEKS BEFORE MANY FARMERS KNOW IF THEY'LL EVEN BE ABLE TO HARVEST A CROP THIS YEAR DUE TO THE DRENCHING RAINS AND FLOODING ACROSS THE WESTERN CORN BELT MONSANTO THOUGH IS ALREADY REAPING THE BENEFIT OF RECORD ROUNDUP SALES MONSANTO REPORTED YESTERDAY THAT SECONDQUARTER NET INCOME NEARLY DOUBLED TO 200 MILLION OR 166 A SHARE FROM 105 MILLION OR 86 CENTS A SHARE IN THE YEAREARLIER QUARTER WHICH INCLUDED SEVERAL CHARGES EVEN THOUGH MONSANTO MAKES MANY PRODUCTS RANGING FROM ARTIFICIAL SWEETENERS TO CHEMICALS DRUGS AND CARPET FIBERS IT WAS EFFECTIVELY A ONEPRODUCT COMPANY LAST QUARTER SAID RICHARD J MAHONEY CHAIRMAN AND CHIEF EXECUTIVE THE PRIMARY SOURCE OF OUR OUTSTANDING PERFORMANCE THIS QUARTER IS THE AGRICULTURAL GROUP'S FAMILY OF ROUNDUP HERBICIDES MR MAHONEY SAID WALL STREET ANALYSTS HAD BEEN TOLD BY THE COMPANY IN RECENT WEEKS TO EXPECT BIG SALES FIGURES FROM THE AGRICULTURAL UNIT BUT THE ACTUAL NUMBERS WERE BETTER THAN MANY HAD HOPED THEY BLEW THE BARN DOORS OFF THE AG BUSINESS IN THE SECOND QUARTER SAID PAUL LEMING AN ANALYST WITH KIDDER PEABODY IN NEW YORK PRICE MONSANTO OPENED YESTERDAY AT 60 A SHARE JUST SHY OF THE 52WEEK HIGH OF 6050 AFTER THE EARNINGS WERE RELEASED THE STOCK DRIFTED LOWER DURING THE DAY TO CLOSE AT 5850 DOWN 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE AGRICULTURAL GROUP'S OPERATING PROFIT IN THE SECOND QUARTER JUMPED 79 TO 258 MILLION FROM 144 MILLION A YEAR EARLIER MONSANTO SAID IN THE 1992 PERIOD THE UNIT'S OPERATING PROFIT WAS REDUCED BY A 19 MILLION PRETAX CHARGE TO COVER THE COST OF AN EXPLOSION AT A MONSANTO PLANT THAT MADE A KEY ROUNDUP INGREDIENT MONSANTO DOESN'T DISCLOSE ACTUAL SALES FIGURES FOR ROUNDUP BUT MOST ANALYSTS ESTIMATED 1992 SALES OF THE HERBICIDE AT ROUGHLY 1 BILLION AS OF LAST FALL ABOUT 10 OF ACREAGE UNDER CULTIVATION IN THE US WAS WORKED BY FARMERS USING NOTILL METHODS NOTILL FARMERS PLANT SEEDS DIRECTLY THROUGH THE RESIDUE OF DEAD CORN STALKS OR SOYBEAN STUBBLE RATHER THAN PLOW IT UNDER TO CURB EROSION THE TECHNIQUE ALSO GREATLY REDUCES THE AMOUNT OF PESTICIDE AND FERTILIZER RUNOFF THAT CONTAMINATES RIVERS AND LAKES EVEN THOUGH SOME NOTILL FARMERS USE MORE HERBICIDES THAN CONVENTIONAL FARMERS UNDER CERTAIN CIRCUMSTANCES MR MAHONEY ATTRIBUTED THE SECONDQUARTER JUMP IN ROUNDUP SALES TO THE RAPID ADOPTION OF MINIMUM TILLAGE TECHNIQUES BY FARMERS FARMERS ACROSS THE US ARE ADOPTING MINIMUM TILLAGE OR NOTILL TECHNIQUES TO SHARPLY CUT SOIL EROSION AS WELL AS LABOR FUEL AND MACHINERY COSTS INSTEAD OF CULTIVATING THEIR FIELDS THESE FARMERS USE ROUNDUP AND OTHER CHEMICALS TO CONTROL WEEDS MR MAHONEY ADDED THAT EXTREMELY WET WEATHER IN THE UNITED STATES GREATLY ADDED TO THIS PRACTICE AS MANY FARMERS WERE DELAYED GETTING INTO THEIR FIELDS BUT THERE'S A QUESTION MARK CLOUDING ROUNDUP'S FUTURE SALES GROWTH HOW MANY OF THESE FARMERS WILL JUST SAY NO TO NOTILL AND ROUNDUP NEXT YEAR IF NORMAL WEATHER PATTERNS ALLOW THEM TO PULL THEIR PLOWS BACK INTO THE FIELDS AND HOW MANY FARMERS PLANNED TO ADOPT NOTILL METHODS AND ROUNDUP FOR GOOD A NICHOLAS FILIPPELLO MONSANTO'S CHIEF ECONOMIST SAID THAT PRELIMINARY ESTIMATES FROM THE COMPANY'S SALES REPRESENTATIVES INDICATED THAT ROUGHLY 50 OF THE US ROUNDUP SALES IN THE SECOND QUARTER WERE TO FARMERS WHO WERE NOTILLERS BY DESIGN THE REST APPEARED TO BE WET WEATHER NOTILLERS BY DEFAULT HE SAID ON A GLOBAL BASIS THE NUMBER OF FARMERS ADOPTING NOTILL TECHNIQUES AS PART OF A PLAN TO CUT EROSION AND COSTS IS CLOSER TO TWOTHIRDS SINCE EUROPEAN AND AUSTRALIAN FARMERS FOR INSTANCE WERE SPARED THE SOAKING SUFFERED BY MANY US FARMERS MR FILIPPELLO AND SEVERAL ANALYSTS NOTED HOWEVER THAT MANY OF THE FARMERS WHO ADOPTED NOTILL FARMING METHODS BECAUSE THEY HAD TO MAY STICK WITH THE PRACTICE EVEN IF RAINFALL PATTERNS RETURN TO NORMAL ACROSS THE US NEXT YEAR MONSANTO IS SAYING THAT ONCE THEY TRY IT THEY'LL LIKE IT SAID ROBERT REITZES AN ANALYST WITH CJ LAWRENCE IN NEW YORK MONSANTO ISN'T EXPECTING MUCH IN THE WAY OF ROUNDUP PROFITS IN THIS YEAR'S SECOND HALF ROUNDUP AND OTHER FARM CHEMICALS RACK UP MOST OF THEIR SALES JUST BEFORE AND DURING THE SPRING PLANTING SEASON IN THE US PART OF THE JUMP IN SECONDQUARTER ROUNDUP SALES RESULTED IN FARMERS DELAYING PURCHASES IN THE FIRST QUARTER BECAUSE IT WAS SO WET IN CERTAIN PARTS OF EUROPE FARMERS APPLY ROUNDUP AFTER THE FALL HARVEST HOWEVER TO BURN DOWN WEEDS BEFORE THE WINTER SEASON AS FOR NEXT YEAR MOST ANALYSTS SAID THEY WOULD BE HAPPY TO SEE THE AGRICULTURAL GROUP'S RESULTS COME IN EVEN WITH THIS YEAR'S BARNBURNING PACE MONSANTO DOESN'T PROJECT RESULTS SOME ANALYSTS ARE MORE OPTIMISTIC PAUL RAMAN AN ANALYST WITH SG WARBURG SECURITIES IN NEW YORK ESTIMATED THAT ROUNDUP SALES WILL JUMP 20 TO 25 NEXT YEAR MONSANTO IS DOING AN OUTSTANDING JOB MANAGING THAT MARKET HE SAID MONSANTO'S CHEMICAL BUSINESS RELIES HEAVILY ON SALES TO AUTOMOTIVE COMPANIES IN THE US AND IN EUROPE AND ON THE DOMESTIC HOUSING MARKET THE COMPANY'S ABS PLASTICS ARE USED IN CAR DASHBOARDS ITS SAFLEX CLEAR PLASTIC LINERS ARE USED IN WINDSHIELDS AND ITS RUBBER CHEMICALS ARE USED IN CAR TIRES MONSANTO'S NYLON CARPET FIBER SALES FLUCTUATE WITH HOUSING STARTS AND HOME RESALE FIGURES THE CHEMICAL UNIT'S OPERATING PROFIT IS NOTHING TO GET EXCITED ABOUT SAID HARVEY STOBER AN ANALYST WITH DEAN WITTER REYNOLDS IN NEW YORK SECONDQUARTER OPERATING PROFIT ACTUALLY DECLINED FROM A YEAR AGO EXCLUDING A 41 MILLION PRETAX CHARGE IN THE 1992 PERIOD FOR A LEGAL SETTLEMENT MR STOBER AND OTHER ANALYSTS ARE MORE OPTIMISTIC ABOUT CHEMICAL SALES IN 1994 WHEN THEY PREDICT US SALES WILL BE STRONGER AND MOST EUROPEAN ECONOMIES WILL FINALLY REBOUND AS FOR MONSANTO'S OTHER BUSINESSES NUTRASWEET ARTIFICIAL SWEETENER SALES ARE UNDER PRESSURE FROM GENERIC COMPETITORS AND INVENTORY BUILDING BY ONE OF THE BIG SOFT DRINK COMPANIES ANALYSTS SAID MONSANTO'S SEARLE PHARMACEUTICAL DIVISION POSTED AN OPERATING LOSS IN THE QUARTER DUE TO NEW PRODUCT LAUNCH COSTS AND GENERIC COMPETITION FOR CALAN CALCIUM CHANNEL BLOCKER DRUG MR STOBER ESTIMATES THAT MONSANTO WILL EARN 365 A SHARE THIS YEAR IN CONTRAST TO A LOSS AFTER CHARGES LAST YEAR OF 71 CENTS A SHARE AND WILL POST 1994 EARNINGS OF 435 A SHARE 9307210056 930721 A BOOM IN ASIA AIG SELLS INSURANCE IN SHANGHAI TESTING SERVICE FIRMS' ROLE FOREIGN OUTFITS STAND READY TO EXPLOIT ANY OPENINGS THE EXPERIMENT CREATES THE INSURER COMES HOME BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA WU CHITUNG IS A GOLD DIGGER HOPING TO SCORE WITH A LITTLE GIANT BRIEFCASE IN HAND AND SMILE ON STRAIGHT HE DODGES THROUGH BUSY TRAFFIC TO ACCOST AN ELECTRONICSSHOP OWNER IDLING IN HIS OWN DOORWAY A FEW QUICK WORDS AND HE HAS LURED THE MAN INSIDE SOME FAST TALK AND THE SLIGHTLY PUZZLED SHOP OWNER HAS BECOME THE NEWEST CUSTOMER OF AMERICAN INTERNATIONAL GROUP INC THE ONLY FOREIGN INSURANCE COMPANY IN CHINA SELLING DIRECTLY TO CHINESE CITIZENS I NEVER BELIEVED IN SUCH THINGS BEFORE CONFESSES ZHANG SHENGDONG THE SHOPKEEPER AS HE PAYS HIS FIRST YEAR'S LIFEINSURANCE PREMIUM IN CASH I JUST DECIDED TO HAVE A TRY A NEW TASTE TO SEE WHAT IT'S LIKE THAT MAY BE AN ODD REASON FOR BUYING INSURANCE BUT IT IS GOOD ENOUGH FOR AIG AND ITS AGENT MR WU JEFFERY TO FOREIGNERS HE IS ONE OF SOME 140 AIG REPRESENTATIVES KNOCKING ON SHANGHAI DOORS FOR CLIENTS AND COMMISSIONS AND MANY SEEM TO BE SUCCESSFUL GOLD DIGGERS AMBITIOUS WORKERS IN LOCAL SLANG IN EIGHT MONTHS THEY HAVE SOLD MORE THAN 12000 POLICIES A SMALL STRAIGHTLIFE VERSION CALLED THE LITTLE GIANT IS POPULAR AND AIG EXPECTS THEM TO SELL MANY MANY MORE IN A COUNTRY WITH ONEFIFTH THE WORLD'S PEOPLE AND ITS FASTESTGROWING ECONOMY WE ARE OPTIMISTIC ABOUT THE POTENTIAL FOR AIG IN CHINA SAYS MAURICE R HANK GREENBERG THE COMPANY'S FEISTY CHAIRMAN IN THE LONG TERM CHINA WILL BE REACHING OUT FOR WHAT IS COMMONPLACE ELSEWHERE THE PEOPLE WILL WANT TO BUY LIFE EDUCATION AND ALL THE OTHER POLICIES BUT AIG'S PRESENCE IN SHANGHAI HAS SIGNIFICANCE BEYOND THE COMPANY'S OWN PROSPECTS IT ILLUSTRATES THE CHINESE ECONOMY'S GROWING COMPLEXITY FOREIGN TRADERS AND MANUFACTURERS ARE ALREADY ACTIVE NOW BEIJING OFFICIALS CALL AIG'S PRESENCE AN EXPERIMENT TO SEE WHETHER SERVICE COMPANIES ALSO CAN HELP CHINA DEVELOP THEY SEEM ESPECIALLY INTERESTED IN COMPANIES THAT MANAGE OR OTHERWISE DEAL WITH MONEY SO THEY ARE WATCHING AIG CLOSELY IF PLEASED THEY WILL EXTEND ITS OPERATING LICENSE BEYOND SHANGHAI TO OTHER GROWTH CITIES AIG HAS ALREADY ASKED FOR A LICENSE FOR GUANGZHOU FORMERLY CANTON OTHER SERVICE COMPANIES WOULD PROBABLY FOLLOW QUICKLY INTO CHINA BUT IF OFFICIALS DECIDE THAT INSURANCE AND OTHER SERVICE COMPANIES TAKE OUT MORE THAN THEY PUT IN THEY WILL SLAM THE DOOR AND PLEASE STATEOWNED MONOPOLIES THAT DON'T WANT THEM HERE ANYWAY IN FACT THE MAIN CHINESE INSURANCE COMPANY PEOPLE'S INSURANCE CO OF CHINA FOUGHT HARD TO EXCLUDE AIG DESPITE THEIR CLOSE BUSINESS RELATIONS SINCE 1980 POLITICAL LEADERS IN BEIJING RULED IN FAVOR OF AIG CHINESE BANKS FREIGHT FORWARDERS AIRLINES AND OTHER SERVICE COMPANIES ARE EQUALLY OPPOSED TO LETTING OUTSIDERS ENTER THEIR HOME MARKETS THOUGH THEY ALSO ARRANGE JOINT VENTURES TO GAIN TOEHOLDS OVERSEAS IF CHINESE COMPANIES CAN DO WELL THEN THERE WON'T BE SO MUCH OF A ROLE FOR FOREIGNERS WARNS WANG YUANZHI A SENIOR OFFICIAL OF THE POWERFUL STATE ECONOMIC AND TRADE COMMISSION IN BEIJING A RECENTLY CREATED ECONOMICPOLICY PANEL THE CLINTON ADMINISTRATION MEANWHILE IS PUSHING CHINA TO OPEN SERVICE MARKETS FASTER IT CONTENDS THAT CHINA'S RULES UNFAIRLY HOBBLE FOREIGN COMPANIES THIS MATTERS BECAUSE US SERVICE INDUSTRIES ARE HIGHLY COMPETITIVE IN GLOBAL MARKETS AND THEIR EARNINGS PARTLY OFFSET AMERICA'S HUGE DEFICITS IN MERCHANDISE TRADE SINCE THIS YEAR'S TRADE DEFICIT WITH CHINA MAY REACH 20 BILLION WASHINGTON SEES NO REASON FOR BEIJING TO KEEP REAPING WHAT ONE US OFFICIAL CALLS HIGH MONOPOLY RENTS BY PROTECTING ITS SERVICE COMPANIES FROM COMPETITION HOWEVER THESE MARKETACCESS NEGOTIATIONS TURN OUT THEY SHOW HOW FAST CHINA IS CHANGING NOT LONG AGO IT WOULD HAVE SEEMED PREPOSTEROUS TO CONTEND THAT FOREIGN STOCKBROKERS MERCHANT BANKERS ACCOUNTANTS AND INSURANCE PEOPLE AMONG OTHERS COULD PLAY A DIRECT ROLE HERE CHINA WAS SEEN MAINLY AS A SOURCE OF CHEAP TOYS AND TEXTILES OFFERING LITTLE OPPORTUNITY FOR SOPHISTICATED FOREIGN OPERATIONS IN RECENT YEARS HOWEVER SOME 90000 FOREIGN COMPANIES HAVE SAID THEY WILL INVEST 100 BILLION HERE ACCORDING TO BEIJING TO MAKE EVERYTHING FROM VOLKSWAGEN AUTOS TO AT&T TELEPHONE SWITCHES TO NEC SEMICONDUCTORS NEW FACTORIES SPRING UP DAILY TO MAKE INCREASINGLY COMPLEX PRODUCTS THE SERVICE INDUSTRIES ARE THE LATEST WAVE OF APPLICANTS BUT AIG IN A SENSE HAS MERELY COME HOME AGAIN BACK IN 1919 A WANDERING YOUNG AMERICAN NAMED CORNELIUS VANDER STARR FOUNDED ITS PREDECESSOR COMPANY HERE AFTER PREVIOUSLY RUNNING AN ICECREAM PARLOR IN CALIFORNIA AND WORKING AS A SHIPPING CLERK IN YOKOHAMA UNLIKE HIS STUFFIER COLONIALMINDED EUROPEAN RIVALS HE HIRED CHINESE AGENTS TO SELL TO CHINESE CITIZENS AND HIS COMPANY PROSPERED UNTIL THE COMMUNISTS FORCED IT OUT IN 1950 ITS HEADQUARTERS HAD MOVED TO NEW YORK AS WORLD WAR II DREW NEAR BY THEN IT WAS A MAJOR GLOBAL PLAYER NOW IT IS ONE OF THE WORLD'S LARGEST MOST PROFITABLE INSURERS ITS COMPETITORS WANT A SHARE OF THE CHINESE MARKET TOO FOR EXAMPLE AETNA LIFE & CASUALTY SEES A MARKET IF STATE FACTORIES HAVE TO TAKE RESPONSIBILITY FOR EMPLOYEE PENSIONS FROM THE CENTRAL GOVERNMENT WHICH WANTS THEM OFF ITS BOOKS WHEN THAT HAPPENS THEY'LL NEED OUTSIDE EXPERTISE AN AETNA OFFICIAL SAYS MEANTIME ACCOUNTANTS SEE THEIR CHANCE AS CHINESE INDUSTRY ENTERS GLOBAL MARKETS SEEKS MORE PRIVATE FINANCING AND THUS MUST LIFT ITS ACCOUNTING METHODS TO WORLD STANDARDS WHEN CHINESE COMPANIES RAISE CAPITAL FIRMS SUCH AS MERRILL LYNCH & CO WANT TO UNDERWRITE THE OFFERINGS AND SELL SHARES DIRECTLY TO CHINESE INVESTORS AND JOHN HART OF SCHENKER & CO'S BEIJING OFFICE SAYS HIS FREIGHTFORWARDING COMPANY MIGHT EVEN OPERATE A DOMESTIC TRUCKING LINE IF THE CHINESE EVER LET FOREIGNERS IN TO COMPETE THE IDEA OF SERVICE AS A PRODUCT YOU SELL DOESN'T QUITE REGISTER MR HART NOTES CHINA'S STATE COMPANIES TEND TO THINK THAT THEY'RE NOT SELLING YOU A SERVICE BUT DOING YOU A FAVOR IT IS NO ACCIDENT THAT FOREIGN COMPANIES ARE FOCUSING ON SHANGHAI CHINA'S LARGEST CITY WITH NEARLY 14 MILLION PEOPLE IT IS OUT TO BECOME A REGIONAL COMMERCIAL AND FINANCIAL CENTER AGAIN IT ONCE DWARFED HONG KONG AND SINGAPORE IT ISN'T AS BOISTEROUS OR TAWDRY AS IN PREWAR DAYS BUT SOME OF THE OLD VERVE IS BACK NOW THAT THE MAOISTS ARE GONE ITS OFFICIAL ASSIGNMENT IS TO BECOME THE HEAD OF THE DRAGON LINKING THE SERPENTINE YANGTZE VALLEY HOME TO PERHAPS 300 MILLION PEOPLE TO THE SEA AND BEYOND IN PARTICULAR WE WILL PAY MUCH ATTENTION TO DEVELOPING FINANCIAL MARKETS AND MONEY MARKETS SAYS HUA JIANMIN CHAIRMAN OF THE CITY'S PLANNING COMMISSION THE CITY IS FLAUNTING NEW WEALTH HIGHRISE APARTMENTS OFFICES AND HOTELS MANY OF THEM JOINT VENTURES WITH FOREIGNERS ARE SPROUTING UP TRAFFIC JAMS SEEM CONSTANT EVEN THOUGH TRUCKS ARE BANNED DURING THE DAY BUSY MANAGERS CLUTCH BEEPERS OR CELLULAR PHONES WHEN OUT OF THEIR OFFICES SHOPS ARE WELLSTOCKED WITH FOOD CLOTHING COSMETICS AND CUSTOMERS THERE IS NOT A BAGGY MAO SUIT IN SIGHT WOMEN ARE REDISCOVERING STYLE IN EVERYTHING FROM SHORT SHORTS TO LONG DRESSES FROM SHOPS SUCH AS THE FLYING BAT FIRM OR PIERRE CARDIN MANY YOUNGSTERS PREFER TSHIRTS THOUGH THEIR ENGLISH PHRASES ARE OFTEN RUDE OR WRONG SOME OLD HANDS SAY SHANGHAI REMINDS THEM OF OTHER DEVELOPING ASIAN CITIES A FEW DECADES AGO ALREADY 20 OVERSEAS BANKS HAVE OFFICES HERE SO DO MANY OTHER SERVICE COMPANIES THE ROSTER AT SHANGHAI CENTRE A HIGHRISE OFFICE APARTMENT AND HOTEL COMPLEX PARTLY OWNED BY AIG LISTS SUCH NAMES AS MCCANNERICKSON KPMG PEAT MARWICK MERRILL LYNCH BARCLAY'S BANK AND CREDIT LYONNAIS AMONG OTHERS MOST ARE SOCALLED REPRESENTATIVE OFFICES WHICH CAN DEAL ONLY WITH EXPATRIATES JOINT VENTURES OR THEIR OFFICIAL STATE COUNTERPARTS MERRILL LYNCH FOR EXAMPLE CAN HELP UNDERWRITE CHINESE COMPANIES' STOCK OFFERINGS OVERSEAS BUT CAN'T SELL SHARES LOCALLY FOREIGN BANKERS MUST CHANNEL THEIR FOREIGNEXCHANGE BUSINESS THROUGH STATE BANKS RATHER THAN HANDLE IT THEMSELVES AND THEY CAN'T ENGAGE IN RETAIL BANKING AIG IS THE EXCEPTION IT SELLS DIRECTLY TO LOCAL CITIZENS AND IT HOPES THAT CHINA WILL ACCOUNT FOR 10 OR 15 OF ITS HUGE ASIAN LIFEINSURANCE BUSINESS IN ANOTHER DECADE OR SO WE ALWAYS HAD THE ASPIRATION TO RETURN SAYS MR GREENBERG WHO SUCCEEDED MR STARR AS CHAIRMAN IN 1968 THE TOUGH CAMPAIGN TO GET BACK BEGAN WITH MR GREENBERG'S FIRST CHINA VISIT IN 1975 NOT LONG AFTER THE US RESUMED POLITICAL TIES WITH BEIJING AFTER YEARS OF TALKING AIG PERSUADED PEOPLE'S INSURANCE CO IN 1980 TO ENTER A JOINT VENTURE ITS FIRST WITH A FOREIGN COMPANY TO INSURE CARGOES MOVING BETWEEN THE COUNTRIES BUT THAT DIDN'T GET AIG ON THE INSIDE SO IT SET OUT TO PROVE ITSELF A LONGTERM FRIEND OF CHINA NOT JUST A FASTBUCK OPERATOR IT INVESTED IN SHANGHAI CENTRE IT CREATED AN INTERNATIONAL BUSINESS LEADERS' ADVISORY COUNCIL FOR THE MAYOR OF SHANGHAI WHICH AMONG OTHER THINGS HELD A 1990 CONFERENCE HERE CHAIRED BY THE PRESIDENT OF THE NEW YORK FEDERAL RESERVE BANK SO WORLDCLASS MANAGERS COULD EXPLAIN HOW FINANCIAL COMPANIES MIGHT HELP SHANGHAI IT CONSTANTLY TOUTED ITS SHANGHAI HERITAGE IT STRONGLY ADVOCATED FAVORABLE US TARIFF TREATMENT FOR CHINESE GOODS IT HIRED HENRY KISSINGER A NOTED FRIEND OF CHINA AS CHAIRMAN OF ITS INTERNATIONAL ADVISORY BOARD AND IT IS FORMING A 1 BILLION INVESTMENT FUND FOR ASIAN INDUSTRIAL AND INFRASTRUCTURE PROJECTS WITH ABOUT HALF THE MONEY EARMARKED FOR CHINA AIG GOT ITS LICENSE LAST SEPTEMBER AND QUICKLY OPENED FOR BUSINESS HERE THE COMPANY CONTENDS NOT SURPRISINGLY THAT LIFE INSURANCE IS ESSENTIAL FOR NATIONBUILDING IN MR GREENBERG'S WORDS BECAUSE INSURERS COLLECT LOCAL FUNDS AND INVEST THEM PRODUCTIVELY AIG IS COLLECTING THOSE PREMIUMS AS FAST AS IT CAN EVEN THOUGH BECAUSE OF STARTUP COSTS PROFITS SEEM MORE THAN FIVE YEARS AWAY THERE'S SO MUCH BUSINESS IN CHINA SAYS ERNEST STEMPEL VICE CHAIRMAN FOR LIFE INSURANCE AND A 55YEAR COMPANY VETERAN WHO HAS 70000 AGENTS ELSEWHERE IN ASIA IT'S A YOUNG POPULATION AND SO FEW ARE INSURED WORK AT AIG'S SHANGHAI CENTRE OFFICES BEGINS WITH MORNING CALL AGENTS RECITE IN ENGLISH AIG'S SEVEN RULES OF SELLING DON'T BE TOO SERIOUS SAYS ONE AND REPORT IN CHINESE ON THE PREVIOUS DAY MANAGERS FROM AIG'S LARGE TAIWAN UNIT PROVIDE TRAINING AND SALES TIPS THEN ITS MEN AND WOMEN HIT THE STREET MOST AGENTS ARE 25 TO 35 YEARS OLD AND COLLEGEEDUCATED THREE ARE DOCTORS ACCORDING TO NYSCO SHU THE TAIWANESE MANAGER OF LIFEINSURANCE OPERATIONS HERE REPRESENTING AN AMERICAN COMPANY IS PRESTIGIOUS AND HELPS CLOSE SALES I WOULDN'T SIGN UP IF THIS WAS A JAPANESE COMPANY ONE NEW CUSTOMER SAYS BUT THE LURE OF MONEY IS THE MAIN DRAW EVEN THOUGH AGENTS MUST RELY ON COMMISSIONSSOMETHING UNKNOWN IN CHINA FOR DECADES JEFFERY WU SEEMS TYPICAL HE IS A CHEERY 25YEAROLD WITH A DEGREE IN COMPUTER ENGINEERING BUT I'M NOT VERY GOOD AT IT HE CONCEDES AFTER A STINT AS A BARTENDER HE JOINED AIG FOUR MONTHS AGO IN HIS FIRST MONTH HE MADE ONLY 300 YUAN 30 AT THE STREET RATE BUT SOON HIT 3000 YUAN AND DARED TELL HIS FACTORYENGINEER FATHER AND ENGLISHTEACHER MOTHER WHERE HE WORKS RELYING ON COMMISSIONS SEEMS TOO PRECARIOUS TO OLDER CHINESE SOME OF HIS SUCCESS IS DUE TO KWANGXI THE PERSONAL CONNECTIONS ON WHICH ALL CHINESE RELY BUT HE DOES MORE THAN SELL TO FRIENDS ONE RECENT AFTERNOON MR WU REVISITED FRIENDLY NEIGHBOR STATE FARM COMMERCIAL CORP A CITYOWNED BUT PROSPERING DISTRIBUTOR OF PRODUCE ITS MANAGER HAD PREVIOUSLY AGREED TO BUY A HEALTH PLAN TO SUPPLEMENT HIS STATE BENEFITS THE VISIT YIELDED A SMALL BONANZA THE MANAGER BOUGHT POLICIES FOR ALL 12 EMPLOYEES THE STATE SYSTEM PAYS ONLY FIVE YUAN A DAY TOWARD HOSPITAL FEES HALF THE COST THE AIG PLAN PAYS 60 PARTLY TOWARD LOST COMPENSATION SO THE MANAGER DECIDED HIS STAFF NEEDED EXTRA PROTECTION MR WU COLLECTED A PREMIUM CHECK FOR 4732 YUAN HE WILL KEEP 20 AND SAID HE WOULD RETURN TO DISCUSS LIFE INSURANCE IT WASN'T A HARD SELL HE WANTED TO SELL AND WE INTENDED TO BUY SO OUR INTERESTS MATCHED ONE EMPLOYEE NOTED SO TOO AT THE PURPLE HAPPINESS AUDIO SHOP WHICH PROVIDES EQUIPMENT FOR DISCOS AND KARAOKE BARS DAI MEIPING THE OWNER AND A FORMER MANAGER IN A MISSILE FACTORY SAID SHE WAS SIGNING UP PARTLY TO SUPPORT THIS YOUNG MAN AND ALSO TO ENLARGE MY FRIENDSHIP NETWORK BY TAKING PART IN THIS INSURANCE COMPANY SHE SEEMED A BIT VAGUE ABOUT THE POLICY ITSELF BUT COLD CALLS AREN'T ALL SO EASY MR WU SAYS 80 OF HIS FAIL YET THE NOVELTY OF HIS TRADE HELPS NOT FOR DECADES HAVE INSURANCE COMPANIES OR DOORTODOOR SALESMEN OPERATED HERE AND THERE IS LITTLE INGRAINED RESISTANCE AGAINST EITHER AS A FRIENDLY NEIGHBOR OFFICE CLERK EXPLAINS MR WU HAS A VERY GOOD SENSE OF PUBLIC RELATIONS HE JUST KNOCKED ON OUR DOOR EVEN WITHOUT AN INVITATION AS AN UNEXPECTED FRIEND AND IT WAS PLEASANT TO MEET HIM 9307210054 930721 HP LICENSES LINK TO WINDOWS PALO ALTO CALIF HEWLETTPACKARD CO SAID IT HAS LICENSED A TECHNOLOGY THAT WILL ALLOW SOME HP MACHINES TO RUN PROGRAMS WRITTEN FOR MICROSOFT CORP'S POPULAR WINDOWS OPERATINGSYSTEM SOFTWARE THE TECHNOLOGY LICENSED FROM SUN MICROSYSTEMS INC ALLOWS WINDOWS APPLICATIONS TO RUN ON UNIX THE MOST COMMONLY USED OPERATING SYSTEM ON WORKSTATION COMPUTERS 9307210053 930721 BUSINESS BRIEF AMR CORP AMERICAN AIR CITES PROBLEM IN PHILADELPHIALONDON PLAN AMERICAN AIRLINES FORT WORTH TEXAS SAID BRITISH OFFICIALS AREN'T PROVIDING THE SLOTS OR ARRIVAL AND DEPARTURE TIMES NEEDED AT LONDON'S HEATHROW AIRPORT FOR THE CARRIER'S PROPOSED START OF A PHILADELPHIATOLONDON ROUTE NOV 1 AMERICAN A SUBSIDIARY OF AMR CORP SAID IT'S ASKING OFFICIALS OF THE US TRANSPORTATION AND STATE DEPARTMENTS TO HELP SNIP THE RED TAPE IN OBTAINING THE DESIRED SCHEDULES THE AIRLINE SAID THAT IF THE TIME SLOTS AREN'T GRANTED BY AUG 1 IT WILL BE FORCED TO DELAY THE SERVICE STARTUP UNTIL SPRING OF 1994 THE AIRLINE SAID BRITISH OFFICIALS HAVE SO FAR GRANTED SLOTS FOR ONLY THREE DAYS A WEEK ALL AT TIMES THAT ARE NOT COMMERCIALLY VIABLE THE TRANSPORTATION DEPARTMENT AWARDED AMERICAN AIRLINES THE LONDON ROUTE EARLIER THIS MONTH THE US IS SEEKING GREATER ACCESS TO HEATHROW WHILE THE UNITED KINGDOM IS SEEKING GREATER FREEDOM TO INVEST IN US AIRLINES 9307210052 930721 BUSINESS BRIEF UNION PACIFIC CORP COMPANY POSTS 4 DECLINE IN SECONDQUARTER EARNINGS WHILE IT HAS FORECAST DIFFICULTIES FOR THE CURRENT STORMRAVAGED THIRD QUARTER UNION PACIFIC CORP BETHLEHEM PA SAID STRONG RAIL PERFORMANCE BUTTRESSED SECONDQUARTER NET INCOME FOR THE PERIOD THE COMPANY REPORTED A 4 DECLINE IN NET INCOME TO 198 MILLION OR 96 CENTS A SHARE FROM 206 MILLION OR 101 A SHARE IN THE YEARAGO QUARTER IN THE 1992 SECOND PERIOD THE COMPANY HAD A ONETIME 42 MILLION GAIN FROM A WINDFALL PROFIT TAX SETTLEMENT EXCLUDING THAT ITEM EARNINGS WOULD HAVE RISEN 21 REVENUE INCREASED 4 TO 185 BILLION FROM 178 BILLION THE HOLDING COMPANY SAID EARNINGS AT ITS RAIL UNIT ROSE 13 TO 179 MILLION FROM 158 MILLION AND CARLOADINGS INCREASED 6 FROM THE YEARAGO QUARTER AT ITS RESOURCES UNIT WHICH HAS INTERESTS IN NATURAL GAS AND CRUDE OIL EARNINGS DECLINED 25 TO 72 MILLION FROM 96 MILLION 9307210051 930721 INTERNATIONAL HYUNDAI PLANS CHINA AUTO PLANT SEOUL HYUNDAI MOTOR CO SAID TUESDAY IT HAS EXCHANGED A MEMO OF UNDERSTANDING WITH THE CITY GOVERNMENT OF DALIAN CHINA TO SET UP AN AUTOMOBILE JOINT VENTURE THERE ACCORDING TO A HYUNDAI SPOKESMAN CHUNG JUYUNG THE HONORARY CHAIRMAN OF THE PARENT HYUNDAI GROUP SIGNED THE AGREEMENT WITH DALIAN FOR THE AUTO VENTURE THE FIRST SUCH PROECT BY A SOUTH KOREAN COMPANY HYUNDAI SOUTH KOREA'S LARGEST AUTO COMPANY PLANS TO PRODUCE 120000 UNITS A YEAR OF TRUCKS BUSES AND PASSENGER CARS AT THE PLANNED FACTORY BUT ITS PLAN TO PRODUCE PASSENGER CARS IN CHINA REQUIRES APPROVAL FROM THE CHINESE CENTRAL GOVERNMENT THE HYUNDAI OFFICIAL ADDED OTHER DETAILS FOR THE PROJECT ARE YET TO BE FURTHER DISCUSSED HE SAID 9307210050 930721 MARKETING & MEDIA ADVERTISING SHOWTIME USING THE BIG SCREEN TO SELL CABLE TELEVISION MOVIES BY KEVIN GOLDMAN BEFORE EACH SCREENING OF THE CLINT EASTWOOD HIT IN THE LINE OF FIRE AT CINEPLEX ODEON AND NATIONAL AMUSEMENT THEATERS A HANDFUL OF THE USUAL COMING ATTRACTIONS FOR OTHER FEATURE FILMS APPEAR ALONG WITH TRAILERS FOR THE SEAN CONNERY THRILLER RISING SUN IS ONE FOR A GORY SHOCKER JOHN CARPENTER'S BODY BAGS THOUGH IT LOOKS LIKE A THEATRICAL COMING ATTRACTION AND EVEN SPORTS THE USUAL MOTION PICTURE ASSOCIATION OF AMERICA APPROVAL THE TRAILER ENDS WITH ITS OWN SHOCKER ONLY ON SHOWTIME SHOWTIME VIACOM'S PAY CABLE CHANNEL BEGAN ADVERTISING THIS MONTH IN MOVIE THEATERS AS A WAY TO BREAK THROUGH TELEVISION AND MAGAZINE AD CLUTTER YOU'RE SITTING IN A MOVIE THEATER AND EXPECT TO SEE TRAILERS OF THEATRICALFILM QUALITY SAYS NORA RYAN SENIOR VICE PRESIDENT OF MARKETING AT SHOWTIME WE WANTED TO RAISE EXPECTATIONS ABOUT WHAT YOU WOULD SEE IF YOU SUBSCRIBE TO SHOWTIME SO WE SHOWED UP IN A COMPLETELY UNEXPECTED PLACE IT IS A TACTIC THAT WILL BE COPIED BY RIVAL HOME BOX OFFICE A UNIT OF TIME WARNER INC NEXT MONTH WHEN THE PAY CABLE CHANNEL ADVERTISES ITS ORIGINAL MOVIE AND THE BAND PLAYED ON ABOUT THE AIDS CRISIS STARRING MATTHEW MODINE AND FEATURING CAMEOS BY RICHARD GERE AND LILY TOMLIN BOTH HBO AND SHOWTIME ARE EAGER TO LURE NEW SUBSCRIBERS A DIFFICULT TASK IN A BUSINESS WHERE THEY CAN'T SELL DIRECTLY TO CONSUMERS BUT MUST RELY ON LOCAL CABLE OPERATORS WITH FEW EXCEPTIONS THE PREMIUMCHANNEL BUSINESS HAS BEEN FLAT FOR SOME TIME HBO HAD 172 MILLION SUBSCRIBERS AS OF MARCH 31 ABOUT THE SAME AS A YEAR AGO ACCORDING TO PAUL KAGAN ASSOCIATES IN CARMEL CALIF SHOWTIME HAD MODEST GROWTH OF 4 TO 76 MILLION SUBSCRIBERS IN THE FIRST THREE MONTHS OF 1993 UP FROM 73 MILLION SUBSCRIBERS A YEAR EARLIER BOTH HBO AND SHOWTIME WHICH BUY MOVIES FROM THE MAJOR STUDIOS ARE INCREASINGLY TURNING TO ORIGINAL PROGRAMMING PARTICULARLY MADEFORTV MOVIES TO ADD VALUE FOR SUBSCRIBERS BODY BAGS A 90MINUTE HORROR TRILOGY STARRING MARK HAMILL TWIGGY AND STACY KEACH AMONG OTHERS IS SHOWTIME'S FIRST PUSH INTO ADVERTISING ON THE BIG SCREEN THE 2 1/2MINUTE TRAILER WAS PRODUCED FOR 60000 BY MR CARPENTER WHO DIRECTED THE 1970S HORROR CLASSIC HALLOWEEN SHOWTIME SPENT 96000 TO PLACE THE ADS ON 1700 SCREENS NATIONWIDE IT WASN'T AN EASY SELL SAYS MS RYAN WHILE THEATER OWNERS DON'T MIND COMMERCIALS FOR COCACOLA AMERICAN TELEPHONE & TELEGRAPH AND REEBOK INTERNATIONAL LTD SOME WEREN'T ENTHUSIASTIC ABOUT ADVERTISING WHAT THEY BELIEVE IS A COMPETITIVE PRODUCT SHOWTIME APPARENTLY CALMED THE OWNERS CONCERNS BY CITING STUDIES THAT SHOWED ITS SUBSCRIBERS ARE HEAVY ENTERTAINMENT USERS MEANING THEY GO TO MOVIES RENT FILMS AND ARE COUCH POTATOES WHO WILL WATCH MOVIES ON PAY AND FREE TELEVISION MS RYAN SAYS CAREFUL NEGOTIATIONS TOOK PLACE WITH CINEPLEX ODEON ON THE PLACEMENT OF THE BODY BAGS TRAILER HARDLY ANY DISCUSSION WAS NECESSARY WITH NATIONAL AMUSEMENTS WHOSE CONTROLLING SHAREHOLDER SUMNER REDSTONE CONTROLS SHOWTIME'S PARENT VIACOM SHOWTIME DIDN'T WANT TO BE IN THE MIDDLE OF A SERIES OF COMMERCIALS FOR CONSUMER PRODUCTS COMMERCIALS AT MOVIE THEATERS STILL GET ROUNDLY BOOED ESPECIALLY IN THE NEW YORK AREA SAYS MS RYAN INSTEAD SHOWTIME WANTED TO MAKE IT APPEAR AS IF BODY BAGS WAS MERELY THE FIRST TRAILER SO SHOWTIME NEGOTIATED A SPOT AS THE LAST COMMERCIAL THAT WAY YOU HAVE TO THINK TWICE THAT THIS IS ON SHOWTIME SAYS MS RYAN THE TRAILER INDEED LOOKS LIKE THE REAL MCCOY INTERSPACED WITH SCENES ARE THE WORDS SOMETHING'S COMING SOMETHING STRANGE SOMETHING SHOCKING SOMETHING TERRIFYING THEN A SLIDE COMES ON WITH CREDITS BODY BAGS WASN'T SHOWTIME'S FIRST CANDIDATE FOR SUCH A SPLASHY PROMOTION HOWEVER THE CABLE CHANNEL HAD HOPED TO USE A TRAILER TO PROMOTE ITS FEMALEORIENTED MOVIE CHANTILLY LACE STARRING JILL EIKENBERRY AND JOBETH WILLIAMS ABOUT SEVEN FRIENDS WHO MEET THREE TIMES IN THE COURSE OF A YEAR BUT ONCE SHOWTIME SAW THE MOVIE LINEUP FOR JULY WHEN IT WANTED TO USE THE TRAILER CAMPAIGN IT SHELVED THE IDEA BECAUSE JURASSIC PARK AND IN THE LINE OF FIRE WEREN'T GOOD FITS FOR CHANTILLY LACE SHOWTIME HAD TO SUBMIT ITS TRAILER TO THE MOTION PICTURE ASSOCIATION OF AMERICA WHICH ASKED THE CABLE CHANNEL TO TONE IT DOWN A BIT WHAT IS LEFT IS A BUNCH OF THE USUAL SCREAMS AND IMPENDING MAYHEM THOUGH NOTHING SHOCKING IS SHOWN SHOWTIME WILL USE THE TRAILER TECHNIQUE AGAIN IN THE FIRST QUARTER OF 1994 TO PROMOTE THE BIRDS II A SEQUEL TO THE 1964 ALFRED HITCHCOCK THRILLER SHOWTIME WILL EXPAND THE CAMPAIGN TO INCLUDE IN ADDITION TO CINEPLEX ODEON AND NATIONAL AMUSEMENT THEATERS THOSE THEATERS THAT SUBSCRIBE TO SCREENVISION CINEMA NETWORK THE NATION'S LARGEST DISTRIBUTOR OF COMMERCIALS TO THEATERS AT HBO EXECUTIVES ARE PRODUCING A SPOT TO PROMOTE AND THE BAND PLAYED ON JOHN BILLOCK HBO'S EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING SAYS IT ISN'T AN EASY ASSIGNMENT MOVIE AUDIENCES ARE TOUGH YOU HAVE TO BE CREATIVE AND MAKE SURE YOU DON'T ALIENATE THEM I'VE SEEN THE STORY BOARDS AND I THINK WE'LL CAPTURE THEM THE MOVIE AND THE TRAILER WILL BE HIGH ENTERTAINMENT GANNETT CO'S USA TODAY SAID IT PLANS TO PUT PAID ADS ON THE FRONT PAGES OF ITS MONEY SPORTS AND LIFE SECTIONS ON THE UPPERRIGHT HAND CORNER EARS WHERE THE NEWSPAPER CURRENTLY PROMOTES INSIDE ARTICLES THREE ADVERTISERS ARE INTERESTED IN THE SPOTS SAID TOM CURLEY USA TODAY PRESIDENT AND PUBLISHER DECLINING TO NAME THEM EACH SPOT IS BEING OFFERED ONLY ON A FULLYEAR EVERYDAY BASIS HE SAID FOR 23 MILLION THE ADS FIRST REPORTED IN MEDIA INDUSTRY NEWSLETTER ARE SLATED TO START AROUND OCT 1 WILL THEY EVER RUN ON THE FRONT PAGE OF THE NEWSPAPER'S MAIN NEWS SECTION NEVER NEVER NEVER MR CURLEY SAID AS FOR THE POSSIBILITY THAT A COMPANY'S AD WOULD END UP ABOVE A NEGATIVE HEADLINE MR CURLEY SAID ADVERTISERS TAKE THEIR CHANCES ADDING THAT THEY WON'T GET THE OPTION TO WITHDRAW ON A BADNEWS DAY TRADITIONAL ADVERTISING POLICIES PREVAIL HE SAID NOTING THAT SECTIONFRONT ADS ARE USED AT THE NEW YORK TIMES ON ITS SUNDAY STYLE SECTION AND ARE COMMON IN INTERNATIONAL NEWSPAPERS BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC PULLED A LOCAL TELEVISION COMMERCIAL IN ITS BK TEE VEE CAMPAIGN AFTER RECEIVING COMPLAINTS FROM PARENTS OF CHILDREN WITH DOWN'S SYNDROME THE SPOT OFFERED A 99CENT MEAL TO CUSTOMERS IN THE CHICAGO REGION WHO REPEATED THE PHRASE I LOVE THIS PLACE AT LOCAL BURGER KING RESTAURANTS IN THE COMMERCIAL A GROWN MAN HIS MOUTH AGAPE SITS WITH HIS MOTHER AT A TABLE AS SHE COACHES HIM ON THE PHRASE I CAN'T MA I CAN'T REMEMBER HE EXCLAIMS PUTTING HIS HANDS OVER HIS EARS AND ROCKING FROM SIDE TO SIDE SHE BRINGS HIM TO THE COUNTER A BURGER KING EMPLOYEE COACHES HIM AND ULTIMATELY HE BLURTS OUT THE PHRASE AND GETS HIS MEAL BURGER KING PULLED THE SPOT THURSDAY AFTER RECEIVING A DOZEN CALLS FROM OFFENDED VIEWERS INCLUDING MARY LYNN KRAMER OF CHICAGO WHOSE DAUGHTER HAS DOWN'S SYNDROME I FOUND IT INSULTING MS KRAMER SAID THIS LOOKS TO ME LIKE A CUSTODIAL PARENT WITH SOMEONE WHO IS LEARNING DISABLED A BURGER KING SPOKESWOMAN SAID THE SPOT WAS INTENDED AS A HUMOROUS LOOK AT AN OVERPROTECTIVE MOTHER AND AN ADULT SON LIKE THE CLIFF CLAVIN CHARACTER ON CHEERS KATSIN/LOEB & PARTNERS OF SAN FRANCISCO CREATED THE SPOT BURGER KING SAID 9307210049 930719 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 9307210048 930721 INSIDE TRACK HEINZ CHIEF BOUGHT STOCK AMID SLUMP BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CHAIRMAN OF HJ HEINZ CO IS MAKING A BIG BET THAT WALL STREET'S VIEW OF HIS COMPANY IS FLAT WRONG ANTHONY JF O'REILLY LAST MONTH PLUNKED DOWN 25 MILLION TO BUY 68000 SHARES OF THE PITTSBURGH COMPANY HE HEADS HIS FIRST OPENMARKET PURCHASE SINCE 1974 THEY'RE GOOD VALUE THAT'S THE ISSUE SAID MR O'REILLY IN A TELEPHONE INTERVIEW FROM LONDON HE SAID THE PURCHASES BRING HIS TOTAL HOLDINGS OF HEINZ STOCK TO 325 MILLION SHARES FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THAT MR O'REILLY PURCHASED THE SHARES ON JUNE 23 AT AN AVERAGE PRICE OF 3663 A SHARE SLIGHTLY ABOVE THE STOCK'S 52WEEK LOW OF 3475 HEINZ'S SHARES ARE AMONG A NUMBER OF HIGHPROFILE CONSUMER STOCKS THAT HAVE TAKEN A BEATING EVER SINCE PHILIP MORRIS COS TOUCHED OFF A CIGARETTE PRICE WAR LAST SPRING BY CUTTING THE PRICE OF ITS POPULAR MARLBORO LINE INVESTORS FEARED THAT THE ENCROACHMENT OF PRIVATELABEL AND GENERIC BRANDS WOULD ERODE THE MARKET SHARE AND HEALTHY PROFIT MARGINS THAT MANY LEADING CONSUMERPRODUCT COMPANIES HAD ENJOYED FOR YEARS BUT MR O'REILLY SAID HEINZ'S MANY BRANDNAME PRODUCTS RANGING FROM ITS FAMOUS KETCHUP TO STARKIST CANNED TUNA WEIGHT WATCHERS ENTREES AND OREIDA FROZEN POTATOES REMAIN LEADERS IN THEIR MARKETS A BRAND PROPERLY PRICED AND PROMOTED WILL BE THE DOMINANT FACTOR IN THE RETAIL TRADE IT WILL PROVIDE THE BEST VALUE TO THE CONSUMER IT WILL GENERATE THE HIGHEST RETURN TO THE RETAILER AND WILL GENERATE ADEQUATE PROFIT FOR THE MANUFACTURER HE SAID THE VERY PUBLIC DEBATE OVER THE VIABILITY OF BRAND NAMES IS FOCUSED LARGELY ON THE SPECIFIC CIRCUMSTANCES OF MARLBORO HE CONTINUED IT DOESN'T APPLY IN THE MAIN TO A NUMBER OF LARGE CONSUMER BRANDEDGOODS COMPANIES INCLUDING KELLOGG GENERAL MILLS QUAKER HEINZ RALSTONPURINA CPC INTERNATIONAL COCACOLA AND PEPSICO MR O'REILLY'S PURCHASES FOLLOW BY TWO MONTHS SIGNIFICANT INSIDER PURCHASES AT COCACOLA CO PEPSICO INC AND DR PEPPER/SEVENUP COS AS REPORTED IN THIS NEWSPAPER INSIDERS AT THOSE COMPANIES BOUGHT SHARES IN THEIR CONCERNS BECAUSE AMONG OTHER REASONS THEY FELT THE MARKET OVERREACTED TO THE MARLBORO NEWS INDEED ANALYSTS SAY THE CIGARETTE INDUSTRY SET ITSELF UP FOR PROBLEMS BY PUSHING BIG PRICE INCREASES YEAR AFTER YEAR A STRATEGY SHUNNED BY MAJOR FOOD COMPANIES THE FOOD INDUSTRY HAS HAD VERY MINIMAL PRICE INCREASES OVER THE PAST THREE YEARS SAID WILLIAM LEACH AN ANALYST AT DONALDSON LUFKIN & JENRETTE BY CONTRAST THE CIGARETTE COMPANIES WERE RAISING PRICES BY 10 YEAROVERYEAR DURING THE SAME TIME AND EVENTUALLY THEY JUST FELL OFF THE CLIFF MR O'REILLY AND OTHER HEINZ EXECUTIVES POINT OUT THAT THE COMPANY HAS REFRAINED FROM PUTTING THROUGH PRICE INCREASES AMONG ITS MAJOR BRANDS FOR TWO YEARS ALTHOUGH THAT COULD CHANGE THERE'S CERTAINLY AN OPPORTUNITY FOR MODEST PRICE INCREASES IN SELECT INTERNATIONAL MARKETS HE SAID MENTIONING PROSPECTS FOR PRICE INCREASES IN CANNED TUNA AND FROZEN FRENCH FRIES THE COMPANY HAS ALSO BEEN CUTTING COSTS VIGOROUSLY ALTHOUGH MR O'REILLY SAID HE DOESN'T ENVISION ANY LAYOFFS BEYOND THE RECENTLY ANNOUNCED 8 CUT IN HEINZ'S WORLDWIDE STAFF MR O'REILLY SAID THAT COMPANIES LIKE HEINZ AND COKE GENERATE ALMOST HALF THEIR PROFITS FROM INTERNATIONAL MARKETS AND SHOULD BE WELL PLACED TO BENEFIT FROM EVENTUAL ECONOMIC RECOVERY IN EUROPE FOR HEINZ A TURNAROUND IN THE LAGGARD BRITISH ECONOMY IS KEY HE SAID BECAUSE THE COMPANY ENJOYS MAJOR MARKET PENETRATION IN MORE THAN 10 CONSUMERGOODS CATEGORIES HE SAID PROSPECTS FOR A MAJOR RECOVERY ARE NOW APPARENT IN THE UK THE ECONOMY IS ON THE RISE AFTER THREE YEARS OF BEING IN THE ABSOLUTE DOLDRUMS SAID MR O'REILLY BUT HEINZ'S OVERSEAS BUSINESS EXPOSES THE COMPANY TO CURRENCY VOLATILITY TOO AND MR LEACH AMONG OTHERS WORRIES ABOUT THE EFFECT OF A STRENGTHENING DOLLAR THE ITALIAN LIRA AND BRITISH POUND ARE DOWN AROUND 20 YEARTOYEAR AND THESE MARKETS ARE HEINZ'S TWO BIGGEST FOREIGN AFFILIATES HE SAID FURTHER WEAKNESS IN THOSE CURRENCIES CERTAINLY IS NOT GOING TO HELP THEM BUT IT'S CERTAINLY NOTHING THEY DESERVE ANY BLAME FOR HE DOES HOWEVER BLAME THE COMPANY FOR GOOSING THE NUMBERS IN ITS FISCAL FOURTHQUARTER PROFIT REPORT HE NOTED THAT WALL STREET SOURED ON HEINZ'S SHARES LAST MONTH WHEN THE COMPANY REVEALED THAT IT WAS ONLY ABLE TO ACHIEVE ITS FOURTHQUARTER OPERATING EARNINGS PROJECTION BY MEANS OF UNUSUALLY LOW TAX RATES FOR ITS FOURTH QUARTER ENDED APRIL 28 THE COMPANY EARNED 697 MILLION OR 27 CENTS A SHARE COMPARED WITH 1457 MILLION OR 56 CENTS A SHARE A YEAR EARLIER THE COMPANY ATTRIBUTED THE 52 DROP IN FOURTHQUARTER NET LARGELY TO A BIG RESTRUCTURING CHARGE REFLECTING THE PAYROLL CUT AND OTHER EFFORTS TO SLASH COSTS IN THE FACE OF FLAT PRICING OPERATING EARNINGS JUMPED 32 TO 1923 MILLION OR 74 CENTS A SHARE FROM 1457 MILLION OR 56 CENTS A SHARE WALL STREET ATTRIBUTED MUCH OF THE COMPANY'S IMPROVED OPERATING EARNINGS TO A LOWER TAX RATE 12 IN THE FOURTH QUARTER COMPARED WITH 31 A YEAR EARLIER AND 29 IN THE FULL YEAR COMPARED WITH 36 THAT HEINZ SAID RESULTED FROM TAX BENEFITS OVERSEAS MOSTLY IN ITALY THE QUALITY OF THE EARNINGS HAS NOT BEEN GREAT OVER THE PAST TWO YEARS SAID NOMI GHEZ A GOLDMAN SACHS ANALYST THEY HAVE BEEN ACHIEVING EARNINGS PROJECTIONS WITH A LOWER AND LOWER TAX RATE AND AS A RESULT THEY'RE FACED NOW WITH A TREMENDOUS HURDLE THIS CURRENT FISCAL YEAR THEY'RE EXPECTING THE TAX RATE TO GO UP TO AROUND 36 OR 37 FROM 29 A YEAR AGO ON THE OTHER HAND SHE SAID THEY'RE DRAMATICALLY CUTTING COSTS AND TOOK CHARGES AT THE END OF YEAR THEY'VE CUT EMPLOYMENT BY AROUND 15 OVER TWO YEARS THOSE MOVES SHOULD HELP BOOST FUTURE PROFITS SHE SAID AS SHOULD THE PROPOSED CONTINUED CONSOLIDATION OF PLANTS THEIR FUNDAMENTALS ARE ACTUALLY IMPROVING BUT PEOPLE ON THE STREET REMAIN SUSPICIOUS BECAUSE OF THE COMPANY'S LIBERAL ACCOUNTING METHODS ADDED MR LEACH 9307210047 930721 BUSINESS BRIEF REEBOK INTERNATIONAL LTD DECLINE IN NET INCOME OF 7 IS POSTED FOR SECOND QUARTER REEBOK INTERNATIONAL LTD POSTED A 7 DECLINE IN SECONDQUARTER NET INCOME THE RESULTS WERE IN LINE WITH FORECASTS PROFIT FELL TO 41 MILLION OR 46 CENTS A SHARE FROM 458 MILLION OR 49 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FELL 6 TO 6576 MILLION FROM 702 MILLION LAST MONTH THE STOUGHTON MASS ATHLETIC FOOTWEAR MAKER PREDICTED EARNINGS WOULD BE 44 CENTS TO 48 CENTS A SHARE CITING A LACK OF PRODUCT IN THE KEY BASKETBALL CATEGORY A REPOSITIONING OF ITS CASUAL SHOE LINE AND WEAK ECONOMIES IN SEVERAL OFFSHORE MARKETS NET INCOME FOR THE FIRST HALF WAS 1088 MILLION OR 121 A SHARE COMPARED WITH 1081 MILLION OR 116 A SHARE IN THE YEAREARLIER PERIOD SALES FELL SLIGHTLY TO 148 BILLION FROM 15 BILLION 9307210046 930721 BUSINESS BRIEF FEDERATED DEPARTMENT STORES INC JORDAN MARSH OFFERS CUTS IN PAY OR EARLY RETIREMENT FEDERATED DEPARTMENT STORES INC SAID ITS JORDAN MARSH UNIT NOTIFIED NEARLY 1000 EMPLOYEES THAT THEY WERE TO TAKE SUBSTANTIAL PAY CUTS OR EARLY RETIREMENT FEDERATED SAID THE OPTIONS WERE PRESENTED TO 980 OF ITS 3800 EMPLOYEES IN THE 18 JORDAN MARSH STORES IN NEW ENGLAND THE COMPANY SAID THE PAY CUTS ARE FOR CERTAIN POSITIONS IN WHICH STAFF IS PAID FAR IN EXCESS OF WHAT COMPETITORS ARE PAYING IN THE AREA FEDERATED SAID THE COSTCUTTING IS PARTICULARLY CRITICAL TO THE DOWNTOWN BOSTON JORDAN MARSH WHICH FACES A POTENTIALLY SERIOUS POSSIBILITY OF CLOSURE THE COMPANY SAID THE CUTS WERE PROPOSED IN EARLIER CONTRACT NEGOTIATIONS WITH LOCAL 1445 OF UNITED FOOD AND COMMERCIAL WORKERS UNION OFFICIALS COULD NOT BE REACHED FOR COMMENT THE CUTS AFFECT SALES STAFF WHO EARN MORE THAN 975 TO 24 AN HOUR THOSE WHO CHOOSE TO LEAVE ARE ELIGIBLE FOR AN EARLY RETIREMENT PACKAGE WITH A MINIMUM PAYMENT OF 9700 THE COMPANY SAID POSITIONS VACATED WILL BE FILLED AT LOWER SALARIES 9307210045 930721 BUSINESS BRIEF ADVANCED INTERVENTIONAL SYSTEMS CHARGE FOR SUIT SETTLEMENT EXPECTED FOR SECOND QUARTER ADVANCED INTERVENTIONAL SYSTEMS INC SAID IT EXPECTS ITS SECONDQUARTER RESULTS TO REFLECT A 19 MILLION CHARGE FOR SETTLEMENT OF A CLASSACTION LAWSUIT BROUGHT AGAINST THE COMPANY AND SOME OFFICERS AND DIRECTORS UNDER TERMS OF THE TENTATIVE SETTLEMENT SUBJECT TO COURT APPROVAL THE COMPANY AND ITS INSURERS WILL PAY 39 MILLION INTO A PLAINTIFFS' FUND THE IRVINE CALIF COMPANY SAID THE CHARGE REPRESENTS ITS CONTRIBUTION TO THE FUND ATTORNEYS' FEES AND RELATED COSTS THE SUIT CHARGED THAT THE DEFENDANTS FAILED TO DISCLOSE MATERIAL INFORMATION IN ITS NOVEMBER 1991 PROSPECTUS FOR ITS INITIAL PUBLIC OFFERING THE MAKER OF MEDICAL LASERS SAID THE SETTLEMENT DOES NOT CONSTITUTE AN ADMISSION BY THE COMPANY OF LIABILITY OR WRONGDOING ON ITS PART OR ON THE PART OF ANY OF ITS PAST AND PRESENT OFFICERS AND DIRECTORS IN LAST YEAR'S SECOND QUARTER THE COMPANY REPORTED A NET LOSS OF 15 MILLION OR 17 CENTS A SHARE RESULTS FOR THIS YEAR'S QUARTER WILL BE ANNOUNCED BY THE END OF JULY SAID ROBERT E WALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9307210044 930721 WHAT'S NEWS WORLDWIDE CLINTON NOMINATED A FEDERAL JUDGE FROM NEW YORK TO HEAD THE FBI THE PRESIDENT NAMED LOUIS FREEH A FORMER FBI AGENT TO BECOME DIRECTOR OF THE AGENCY FREEH 43 IS A LAW ENFORCEMENT LEGEND CLINTON SAID CITING THE NOMINEE'S DRUG AND MAILBOMB INVESTIGATIONS AS A PROSECUTOR AND HIS WORK AS AN FBI AGENT IN RACKETEERING CASES IF CONFIRMED BY THE SENATE FREEH WOULD SUCCEED WILLIAM SESSIONS FIRED BY CLINTON ON MONDAY BECAUSE OF QUESTIONS ABOUT HIS CONDUCT AND LEADERSHIP FREEH PLEDGED HIS COMMITMENT TO AN FBI WHOSE ONLY BEACON IS A RULE OF LAW WHOSE SOLE TASK IS PROTECTING ALL OF OUR PEOPLE FROM CRIME AND VIOLENCE REPUBLICANS SOUGHT RELEASE OF TESTIMONY REGARDING HOUSE POST OFFICE OPERATIONS AS DEMOCRATS WORRIED THAT A CASHFORSTAMPS SCANDAL COULD THREATEN OTHER LAWMAKERS BEYOND THEIR TAX CHAIRMAN ROSTENKOWSKI THE GOP PRESSURE ON THE ISSUE COMES AFTER MONDAY'S GUILTY PLEA BY THE FORMER HOUSE POSTMASTER PORTIONS OF A MILELONG LEVEE COLLAPSED IN SOUTH ST LOUIS CAUSING SEVERE FLOODING AS THE MISSISSIPPI RIVER BULGED TOWARD A SECOND SLIGHTLY HIGHER CREST AND HEAVY RAINS HIT THE AREA EARLIER IN THE DAY EMERGENCY WORKERS WITH BULLHORNS HAD DRIVEN THROUGH THE NEIGHBORHOOD URGING THE EVACUATION OF ANY RESIDENTS WHO HADN'T YET LEFT THE WHITE HOUSE BOOSTED ITS REQUEST FOR EMERGENCY MIDWEST FLOOD AID BY 501 MILLION TO 298 BILLION IN RESPONSE TO RISING DAMAGE ESTIMATES BUDGET DIRECTOR PANETTA IN A LETTER TO CONGRESSIONAL APPROPRIATIONS COMMITTEES SAID THAT DAMAGE ESTIMATES ARE PRELIMINARY AND COULD INCREASE RUTH BADER GINSBURG SAID THAT IF CONFIRMED AS A SUPREME COURT JUSTICE SHE WOULD INTERPRET CONSTITUTIONAL RIGHTS CAUTIOUSLY IN THE FIRST DAY OF HER SENATE CONFIRMATION HEARINGS SHE SAID THAT AN OVERLY AGGRESSIVE HIGH COURT COULD ERODE THE AUTHORITY OF LEGISLATORS AND THE PRESIDENT ASPIN ACKNOWLEDGED THAT PRESIDENT CLINTON'S NEW DON'T ASK DON'T TELL POLICY FOR GAY MILITARY RECRUITS WOULD STILL DISCOURAGE HOMOSEXUALS FROM SIGNING UP HE TESTIFIED BEFORE MEMBERS OF THE SENATE ARMED SERVICES COMMITTEE WHOSE CHAIRMAN NUNN SAID HE WAS HOPEFUL THAT CONGRESS WOULD WRITE CLINTON'S NEW POLICY INTO LAW BOSNIA'S PRESIDENT PLEADED FOR UN HELP AGAINST A SERB OFFENSIVE NEAR SARAJEVO THAT APPARENTLY WAS INTENDED TO INCREASE PRESSURE ON MUSLIMS TO ACCEPT ETHNIC PARTITIONING MEANWHILE DOCTORS AND UN WORKERS BEGAN PROVIDING FOOD AND MEDICAL CARE TO 230 MENTAL PATIENTS ABANDONED LAST WEEK IN A HOSPITAL IN FOJNICA WEST OF SARAJEVO AN ITALIAN BUSINESSMAN WAS FOUND DEAD IN HIS MILAN JAIL CELL AND HIS APPARENT SUICIDE SET OFF A DEBATE ABOUT ITALY'S ANTIGRAFT PROBE GABRIELE CAGLIARI EXCHAIRMAN OF THE STATE ENERGY CONGLOMERATE HADN'T BEEN CONVICTED OF ANY CRIME HE WAS BEING HELD ON CHARGES OF CORRUPTION AND ILLEGAL PARTY FINANCING JAPAN'S KIICHI MIYAZAWA HINTED HE WOULD QUIT SOON SAYING HE IS NOT OBSESSED WITH BEING PRIME MINISTER SOME OFFICIALS IN MIYAZAWA'S PARTY REPORTEDLY SAID HE WOULD ANNOUNCE HIS RESIGNATION TOMORROW SEPARATELY SHIN KANEMARU ONCE JAPAN'S MOST POWERFUL POLITICIAN GOES ON TRIAL TOMORROW FOR TAX EVASION THE SENATE PASSED LEGISLATION EXPANDING THE RIGHTS OF MOST FEDERAL EMPLOYEES TO PARTICIPATE IN POLITICAL ACTIVITIES THE PROPOSED LIBERALIZATION OF THE 1939 HATCH ACT WOULD EXCLUDE EMPLOYEES OF THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION THE HOUSE PASSED A SEPARATE VERSION AND THE TWO CHAMBERS WILL HAVE TO WORK OUT DIFFERENCES CAMBODIA'S HEAD OF STATE CANCELED PEACE TALKS WITH THE KHMER ROUGE SAYING THE US WAS FORCING HIM TO DROP PLANS TO OFFER THE GUERRILLAS A GOVERNMENT ROLE PRINCE SIHANOUK SAID HE WAS CALLING OFF THE SEPTEMBER TALKS THOUGH HE IS KNOWN FOR CHANGING HIS MIND THE US HAS SAID IT WON'T AID A GOVERNMENT THAT INCLUDES THE REBELS A MOSCOW MILITARY OFFICIAL ASSERTED THAT RUSSIAN TROOPS GUARDING TAJIKISTAN'S BORDER HAVE THE RIGHT TO ATTACK TARGETS INSIDE AFGHANISTAN TO PREVENT REBELS FROM LAUNCHING CROSSBORDER STRIKES RUSSIA WHICH HAS THOUSANDS OF SOLDIERS IN TAJIKISTAN IS PREPARING TO SEND MORE TROOPS TO THE EXSOVIET REPUBLIC TO REPEL OFFENSIVES 9307210043 930721 LSI LOGIC POSTS NET INCREASE MILPITAS CALIF LSI LOGIC CORP SAID COST CONTROLS AND SALES BOOSTED SECONDQUARTER NET INCOME TO A RECORD 13 MILLION OR 27 CENTS A SHARE COMPARED WITH A LOSS OF 59 MILLION OR 13 CENTS A SHARE A YEAR EARLIER REVENUE GREW 17 TO 1771 MILLION FROM 1518 MILLION IT WAS THE CHIP MAKER'S THIRD CONSECUTIVE QUARTER OF PROFITABILITY 9307210042 930721 BUSINESS BRIEF WISCONSIN CENTRAL TRANSPORTATION INVESTORS CONSORTIUM TO BUY NEW ZEALAND STATE RAIL UNIT WISCONSIN CENTRAL TRANSPORTATION CORP ROSEMONT ILL SAID A CONSORTIUM IT LEADS WILL PAY 220 MILLION TO ACQUIRE NEW ZEALAND RAIL A STATEOWNED RAILROAD SYSTEM BEING PRIVATIZED BY THE NEW ZEALAND GOVERNMENT THE HOLDING COMPANY SAID IT WILL OWN ABOUT 27 OF NZ RAIL THE TRANSACTION IS EXPECTED TO CLOSE WITHIN 90 DAYS BERKSHIRE PARTNERS A BOSTON INVESTMENT CONCERN WILL HOLD A SIMILAR 27 NZ RAIL STAKE THE REMAINING 46 STAKE WILL BE HELD BY NEW ZEALAND INVESTORS LED BY FAY RICHWHITE & CO A NEW ZEALAND INVESTMENT FIRM WISCONSIN CENTRAL SAID THE CONSORTIUM WILL FINANCE 160 MILLION OF THE PURCHASE PRICE AND THAT THE COMPANY'S EQUITY INVESTMENT WILL BE 165 MILLION IT CALLED NZ RAIL A SOLID RAIL SYSTEM WITH THE POTENTIAL FOR GROWTH THAT COULD PLAY A CRITICAL ROLE IN NEW ZEALAND'S ECONOMY THE 2500MILE NZ RAIL WHICH HAS 5300 EMPLOYEES 269 LOCOMOTIVES AND ABOUT 6000 FREIGHT CARS HAD EARNINGS OF 199 MILLION IN THE YEAR ENDED JUNE 30 1992 ON REVENUE OF 272 MILLION 9307210041 930721 URANIUM RESOURCES PLANS CHARGE DALLAS URANIUM RESOURCES INC SAID IT WILL TAKE A CHARGE OF ABOUT 15 MILLION AGAINST SECONDQUARTER EARNINGS TO REFLECT ITS ABANDONMENT OF SOME LEASES AND OPTIONS TO LEASE PROPERTY IN TEXAS WYOMING AND NEW MEXICO IN THE YEARAGO SECOND QUARTER THE COMPANY REPORTED A LOSS OF 491000 OR SEVEN CENTS A SHARE 9307210040 930721 BUSINESS BRIEF RIVERWOOD INTERNATIONAL CORP QUARTERLY PROFIT FALLS 73 SEVERAL FACTORS ARE CITED RIVERWOOD INTERNATIONAL CORP SAID SECONDQUARTER EARNINGS PLUNGED 73 BECAUSE OF WEAK CONTAINERBOARD PRICES AND DEMAND A LOSS AT A NEWLY ACQUIRED MACON GA MILL AND WEAKNESS IN THE WORLDWIDE FOLDINGCARTON BUSINESS THE ATLANTA COMPANY'S BEVERAGE CARRIER MARKETS REMAINED STRONG RIVERWOOD SAID AND LUMBER AND PLYWOOD SEGMENT EARNINGS ROSE ON STRONG PRICES THE COMPANY SAID IT EXPECTS 1993 EARNINGS WILL BE LOWER THAN IN 1992 AS THE FIRSTHALF TRENDS CONTINUE THROUGH THE SECOND HALF OF THE YEAR AS A RESULT THE COMPANY SAID IT MAY HAVE TO CHANGE ITS PRODUCTION SCHEDULES FOR ITS CONTAINERBOARD DIVISION TO ADJUST ITS INVENTORIES SECONDQUARTER NET INCOME WAS 38 MILLION OR SIX CENTS A SHARE COMPARED WITH 139 MILLION OR 28 CENTS A SHARE SALES ROSE ABOUT 4 TO 2932 MILLION FROM 2822 MILLION 9307210039 930721 BUSINESS BRIEF EMC CORP STORAGE SYSTEM FIRM AGREES TO BUY CLOSELY HELD EPOCH EMC CORP SAID IT AGREED TO BUY CLOSELY HELD EPOCH SYSTEMS INC A MAKER OF COMPUTER STORAGE SOFTWARE FOR 475 MILLION SHARES BASED ON EMC'S STOCK PRICE OF 25 UP 375 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY THE ACQUISITION HAS A VALUE OF ABOUT 11875 MILLION EMC HAS 101 MILLION SHARES OUTSTANDING ON A FULLY DILUTED BASIS EMC A FASTGROWING MAKER OF LARGE COMPUTER STORAGE SYSTEMS BASED IN HOPKINTON MASS SAID EPOCH'S SOFTWARE WILL LET IT PROVIDE STORAGE FOR CLIENT/SERVER COMPUTER SYSTEMS IN WHICH LARGE COMPUTERS AND DESKTOP SYSTEMS WORK CLOSELY TOGETHER CLIENT/SERVER SYSTEMS ARE RAPIDLY BECOMING THE PREFERRED COMPUTER DESIGN IN CORPORATIONS AND GOVERNMENT OFFICES EMC SAID EPOCH HAD ABOUT 30 MILLION IN REVENUE LAST YEAR AND WAS PROFITABLE IT SAID THE AGREEMENT IS SUBJECT TO A DEFINITIVE AGREEMENT AND REGULATORY APPROVAL 9307210038 930721 BUSINESS BRIEF CURRAGH INC JUDGE DISMISSES CHARGES RELATED TO MINE EXPLOSION CURRAGH INC SAID A JUDGE THREW OUT CRIMINAL CHARGES AGAINST THE COMPANY AND TWO OF ITS MINE MANAGERS IN CONNECTION WITH A MAY 1992 EXPLOSION THAT KILLED 26 MINERS THE HEAD INVESTIGATOR OF THE EXPLOSION STAFF SGT CHESLEY MACDONALD OF THE ROYAL CANADIAN MOUNTED POLICE SAID THE JUDGE DETERMINED AT A HEARING IN A NOVA SCOTIA COURT THAT THE CHARGES WEREN'T SPECIFIC ENOUGH IN APRIL CURRAGH AND TWO MANAGERS WERE CHARGED WITH MANSLAUGHTER AND CRIMINAL NEGLIGENCE CAUSING DEATH IN CONNECTION WITH THE EXPLOSION AT THE COMPANY'S WESTRAY COAL MINE IN NOVA SCOTIA THE JUDGE SAID THE CHARGES DIDN'T EXPLAIN WHAT THE MANAGERS FAILED TO DO THAT LED TO THE EXPLOSION SGT MACDONALD SAID SGT MACDONALD SAID HE WILL DECIDE WITH PROSECUTORS WHETHER TO APPEAL THE JUDGE'S DECISION OR FILE NEW CHARGES WITH MORE DETAILS SEPARATELY CURRAGH SAID IT RECEIVED AN EXTENSION UNTIL AUG 6 TO FILE A RESTRUCTURING PLAN IN COURT THE TORONTO MINING CONCERN FILED FOR BANKRUPTCYCOURT PROTECTION IN APRIL 9307210037 930721 HEARD ON THE STREET STEEP DECLINE IN APPLE'S STOCK FAILS TO ENTICE INVESTORS WHO FIGURE IT CAN FALL STILL FURTHER BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NOT SO FAST IF YOU ARE THINKING ABOUT PICKING UP SOME SHARES OF APPLE COMPUTER ON THE CHEAP PAUSE TO REFLECT EVEN THOUGH THE STOCK ROSE 1 1/4 YESTERDAY TO 26 7/8 AFTER THE COMPANY MET WITH NEW YORK ANALYSTS SOME SAVVY INVESTORS SAY THE STOCK MAY NOT HAVE HIT BOTTOM YET AND WHEN IT FINALLY DOES THEY SAY IT PROBABLY WON'T ZOOM HIGHER RIGHT AWAY IT'S NO BARGAIN FOR MY MONEY SAYS JOHN NEFF PORTFOLIO MANAGER OF VANGUARD'S 10 BILLION WINDSOR FUND APPLE HAS LOST ITS CACHET IT'S PEDESTRIAN GOODS THIS MAY BE A DIFFICULT IDEA FOR SOME INVESTORS TO ACCEPT AFTER ALL THIS IS THE HIGHFLYING COMPUTER COMPANY WITH THE CUTE ADVERTISING AND THE CREATIVE LONGHAIRANDJEANS CULTURE THAT MADE IT FAMOUS MOREOVER THE STOCK HAS BEEN IN A NOSE DIVE FALLING NEARLY 9 SINCE APPLE ON THURSDAY REPORTED A 1883 MILLLION LOSS FOR THE FISCAL THIRD QUARTER REFLECTING A RESTRUCTURING THAT IS IDLING 2500 WORKERS ON TOP OF EARLIER DECLINES APPLE'S STOCK PRICE IS DOWN 59 FROM ITS 52WEEK HIGH AND JUST A SMIDGEN ABOVE THE YEAR'S LOW SURELY IT MUST BE A BARGAIN NOW RIGHT YET BOTTOM FISHERS SOME CALL THEM VALUE INVESTORS ARE STEERING CLEAR OF APPLE'S SHARES I THINK THE STOCK COULD COME UNDER FURTHER PRESSURE THERE'S NO HURRY TO BUY SAYS DAVID DREMAN MANAGER OF DREMAN VALUE MANAGEMENT INC WITH 24 BILLION UNDER MANAGEMENT THE BEST TIME TO BUY SUCH BELEAGUERED STOCKS HE SAYS IS USUALLY AROUND 60 DAYS AFTER BAD NEWS HITS APPLE'S STOCK REBOUNDED YESTERDAY AFTER THE COMPANY'S NEWLY APPOINTED CHIEF EXECUTIVE OFFICER MICHAEL SPINDLER TOLD ANALYSTS IN NEW YORK OF HIS ROAD MAP FOR THE FUTURE WE BLINKED IN '92 HE TOLD THE ANALYSTS WE'LL NEVER BLINK AGAIN HIS PLAN HE SAID IS TO FOCUS INCREASINGLY ON SOFTWARE AND TO PUMP UP SALES THROUGH FURTHER PRICE CUTS ON MACINTOSH COMPUTERS AND TO BOOST PROFIT MARGINS THROUGH NEWPRODUCT INTRODUCTIONS HE ALSO SAID THE COMPANY WILL MAINTAIN A GROSS PROFIT MARGIN OF AROUND 25 IN ITS MACINTOSH BUSINESS HIGHER THAN THAT OF MANY COMPETITORS BUT ANALYSTS POINTED OUT TO MR SPINDLER IN QUESTIONS AFTER HIS PRESENTATION THAT THEY HAD HEARD THE SAME STORY BEFORE FROM APPLE WHICH HAS TOLD ANALYSTS IN THE PAST THAT IT CAN JUMPSTART SALES THROUGH PRICE CUTS THE TACTIC DIDN'T WORK IN THE THIRD QUARTER WHEN SALES ROSE ONLY 7 DESPITE DEEP CUTS IN PRICES A NUMBER OF VETERAN MONEY MANAGERS EXPECT THE STOCK TO DRIFT DOWN FURTHER TO THE LOW 20S JUST ABOVE ITS 1750 BOOK VALUE BEFORE IT CAN BEGIN A COMEBACK EVEN THEN THEY SAY DON'T LOOK FOR APPLE'S STOCK PRICE TO SHOOT UP SOON IN THE SHORT RUN MANY INVESTORS ARE EXPECTING MORE BAD NEWS IN A REPORT TO CLIENTS THE DAY AFTER APPLE ANNOUNCED ITS THIRDQUARTER RESULTS DAVID KORUS AN ANALYST WITH KIDDER PEABODY URGED AVOIDING THE STOCK THE COMPANY'S HOPES FOR SALES FROM NEW PRODUCTS ARE OVERLY OPTIMISTIC HE BELIEVES AND SUBSTANTIAL GAINS AREN'T LIKELY UNTIL NEXT YEAR ASIDE FROM GROSS MARGINS FALLING FASTER THAN EXPECTED HE SAID THE COMPANY'S BIGGEST EXPOSURE IS ON THE REVENUE LINE WHAT WORRIES MANY MONEY MANAGERS IS THE QUESTION OF WHETHER APPLE RENOWNED FOR ITS GRAPHICS WILL BE ABLE TO REINVENT ITSELF WITH SO MANY USERS BEING DRAWN TO CHEAPER IBMCOMPATIBLES THAT ARE GETTING BETTER GRAPHICS SOFTWARE APPLE HAS LOST ITS UNIQUENESS SAID MR DREMAN THEY'RE GOING TOE TO TOE WITH IBMCOMPATIBLES BIG INVESTORS WONDER HOW MUCH MORE PRESSURE MAY BE PUT ON APPLE'S GROSS MARGINS WHICH ANALYSTS FIGURE HAVE ALREADY FALLEN TO 325 IN THE THIRD QUARTER FROM 43 LAST YEAR YESTERDAY MR SPINDLER TOLD THE GROUP OF ANALYSTS THAT HE EXPECTS TO MAINTAIN A 25 GROSS MARGIN ON THE MACINTOSH AND A HIGHER GROSS MARGIN THAN THAT OVERALL BECAUSE OF THE COMPANY'S OTHER MORE PROFITABLE BUSINESSES KEVIN WENCK A PORTFOLIO MANAGER WITH GT CAPITAL MANAGEMENT IS SKEPTICAL HOWEVER ECONOMICS ARE ECONOMICS HOW DO THEY THINK THEY ARE GOING TO MAINTAIN THOSE MARGINS WHEN THEIR COMPETITORS HAVE 20 MARGINS THAT'S HARD FOR ME TO FIGURE HE SAYS MR SPINDLER SAID YESTERDAY THAT APPLE WILL BE ABLE TO MAINTAIN BETTER MARGINS THAN ITS COMPETITORS BECAUSE IT HAS MORE DIRECT SALES THAN COMPETITORS AS WELL AS HIGHER SALES IN JAPAN BOTH OF WHICH BOOST ITS MARGINS INVESTORS ALSO BLANCH AT THE PROSPECT OF HAVING TO WAIT BEFORE REVENUE BEGINS TO ROLL IN FROM NEW PRODUCTS APPLE IS INDICATING THAT NEW PRODUCTS AND BUSINESSES COULD ACCOUNT FOR 10 OF SALES IN FISCAL 1994 WE THINK THIS IS OPTIMISTIC MR KORUS WROTE TO CLIENTS APPLE IS PINNING ITS HOPES IN LARGE PART ON ITS NEW POWER PC PRODUCT A MORE POWERFUL CHIP IT IS DEVELOPING IN AN ALLIANCE WITH IBM AND MOTOROLA NOT ALL MAC USERS WILL BE ABLE TO TAKE ADVANTAGE OF THE NEW CHIP RIGHT AWAY HOWEVER FURTHERMORE NEWTON THE COMPANY'S NOTEBOOK COMPUTER THAT SERVES AS A PERSONAL ORGANIZER AND NOTEPAD WILL BE SOMEWHAT SUCCESSFUL SAID MR KORUS IT'S DOUBTFUL IT WILL COME CLOSE TO THE SUCCESS APPLE HAD WITH THE POWERBOOK IN FISCAL 1992 HE SAID OF COURSE MANY APPLE ENTHUSIASTS REMAIN CHARLES WOLF AN ANALYST WITH FIRST BOSTON SAYS HE'S STILL RECOMMENDING THE STOCK TO CLIENTS PARTICULARLY THOSE WITH LONGTERM HORIZONS IF THEY CAN REVIVE THE MAC THROUGH POWERPC AND HAVE NEWTON AND OTHER SOFTWARE PRODUCTS TAKE OFF HE SAYS WE COULD SEE A REVITALIZED COMPANY BY THE SPRING OF '94 HEARD 9307210036 930721 BUSINESS BRIEF AMTECH CORP VENTURE'S TECHNOLOGY PICKED AS STANDARD STOCK SOARS AMTECH CORP DALLAS SAID NEW TECHNOLOGY DEVELOPED BY ITS JOINT VENTURE WITH ALCATEL AVI SA A FRENCH TELECOMMUNICATIONS EQUIPMENT MAKER WAS SELECTED AS THE STANDARD FOR AUTOMATIC IDENTIFICATION SYSTEMS FOR RAIL EQUIPMENT MOVING ACROSS BORDERS IN EUROPE AMTECH SHARES ROSE 25 OR 475 APIECE TO 2375 IN NATIONAL OVERTHECOUNTER TRADING ALCATEL AMTECH SA IS HELD 51 BY ALCATEL AND 49 BY AMTECH THE SELECTION OF THE JOINT VENTURE'S TECHNOLOGY BY THE UNION INTERNATIONALE DES CHEMINS DE FER MEANS THAT OTHER COMPANIES WANTING TO COMPETE WITH ALCATEL AMTECH FOR SALES OF EQUIPMENT MUST DESIGN THEIR EQUIPMENT TO BE EQUIVALENT TO ALCATEL'S AMTECH SAID THE STANDARD INITIALLY WILL APPLY TO 16 MILLION UNITS OF RAIL EQUIPMENT IN EUROPE BUT THE COMPANY SAID IT DOESN'T EXPECT THE POTENTIAL FOR SALES OF ITS NEW RAIL EQUIPMENT IDENTIFICATION TECHNOLOGY CALLED DYNICOM TO BE SUBSTANTIAL UNTIL LATE 1994 9307210035 930721 INTERNATIONAL ITALY'S METHODS IN PROBE DEBATED IN WAKE OF DEATH BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN THE APPARENT SUICIDE OF LEADING ITALIAN BUSINESSMAN GABRIELE CAGLIARI AT SAN VITTORE PRISON TOUCHED OFF A NATIONAL DEBATE ON THE PROCEDURES ITALIAN MAGISTRATES USE TO INVESTIGATE THOSE ACCUSED IN ITALY'S CORRUPTION SCANDALS MR CAGLIARI FORMER CHAIRMAN OF ITALY'S THIRD LARGEST COMPANY STATE ENERGY CONGLOMERATE ENTE NAZIONALE IDROCARBURI SPA OR ENI WAS FOUND DEAD WITH A PLASTIC BAG OVER HIS HEAD INSIDE HIS PRISON CELL IN WHAT INVESTIGATORS SAID WAS AN ALMOST CERTAIN SUICIDE MR CAGLIARI 67 YEARS OLD HAD BEEN HELD IN SAN VITTORE SINCE MARCH 9 ON CHARGES OF CORRUPTION AND ILLEGAL POLITICAL PARTY FINANCING RELATED TO HIS TENURE AT ENI THOUGH HE HADN'T BEEN CONVICTED OF ANY CRIME MR CAGLIARI LIKE HUNDREDS IMPLICATED IN THE SCANDALS WAS BEING HELD IN JAIL UNDER THE WIDELY USED PREVENTIVEDETENTION PROCEDURE UNDER ITALIAN LAW MAGISTRATES CAN DETAIN SUSPECTS FOR QUESTIONING FOR AS MANY AS THREE MONTHS WITH EXTENSIONS IF THEY PROVE THAT THE SUSPECT COULD FLEE OR TAMPER WITH EVIDENCE IF RELEASED CRITICS OF THE MAGISTRATES' TACTICS INCLUDING PRESIDENT OSCAR LUIGI SCALFARO HAVE CHARGED THAT PREVENTIVE DETENTION IS USED TO PRESSURE CONFESSIONS FROM SUSPECTS IN VIOLATION OF ITALIAN LAW MR CAGLIARI'S LAWYER VITTORIO D'AIELLO TOLD REPORTERS THAT MAGISTRATES HAD PROMISED TO RELEASE MR CAGLIARI AFTER QUESTIONING LAST FRIDAY BUT RENEGED ON THE PROMISE THE PROMISE OF FREEDOM FOLLOWED BY A CONTRARY OPINION DESTROYED HIM MR D'AIELLO SAID BUT MILAN MAGISTRATES DISCLOSED THAT MR CAGLIARI HAD WRITTEN AT LEAST 10 LETTERS TO FAMILY MEMBERS AND LAWYERS IN EARLY JULY DISCUSSING THE POSSIBILITY OF SUICIDE THE LETTERS WHICH WEREN'T OPENED UNTIL YESTERDAY WERE WRITTEN PRIOR TO LAST WEEKEND SAID FRANCESCO SAVERIO BORRELLI CHIEF MILAN PROSECUTOR STATE TELEVISION REPORTED THAT FABIO DE PASQUALE THE MAGISTRATE WHO ALLEGEDLY PROMISED TO HAVE MR CAGLIARI RELEASED DENIED HE HAD EVER MADE THAT PLEDGE MR CAGLIARI WHO BECAME CHAIRMAN OF ENI IN 1989 WAS BEING QUESTIONED ABOUT SEVERAL INSTANCES IN WHICH ENI ALLEGEDLY FUNNELED MILLIONS OF DOLLARS THROUGH FOREIGN SUBSIDIARIES TO FINANCE ITALIAN POLITICAL PARTIES IN APRIL HE ADMITTED TO PROSECUTORS THAT ENI PAID 26 BILLION LIRE 164 MILLION IN BRIBES TO THE RULING CHRISTIAN DEMOCRAT AND SOCIALIST PARTIES WHILE HE WAS CHAIRMAN FROM 19891992 BUT HE INSISTED HE HAD INHERITED THIS SYSTEM FROM HIS PREDECESSORS RECENTLY MR CAGLIARI HAD BEEN QUESTIONED ABOUT ALLEGED KICKBACKS TO PARTIES ON AN ALLEGED OVERPAYMENT BY ENI TO MONTEDISON SPA WHEN IT BOUGHT OUT MONTEDISON'S 40 STAKE IN CHEMICALS JOINT VENTURE ENIMONT SPA IN 1990 GIUSEPPE GAROFANO FORMER CHAIRMAN OF CRISISRIDDEN MONTEDISON WAS SCHEDULED TO BEGIN ANSWERING MAGISTRATES QUESTIONS ABOUT ENIMONT YESTERDAY FOLLOWING HIS EXTRADITION FROM SWITZERLAND 9307210034 930721 BUSINESS BRIEF LOUISIANAPACIFIC CORP SECONDPERIOD NET ROSE 49 ON STRENGTH OF WOOD PRICES LOUISIANAPACIFIC CORP BENEFITING FROM ITS STRONG FOCUS ON THE PROFITABLE WOOD PRODUCTS BUSINESS SAID ITS SECONDQUARTER EARNINGS ROSE 49 FROM A YEAR AGO THE PORTLAND ORE FORESTPRODUCTS CONCERN SAID NET INCOME IN THE PERIOD ROSE TO 657 MILLION OR 60 CENTS A SHARE FROM 441 MILLION OR 40 CENTS A SHARE A YEAR AGO SALES ROSE 11 TO 5966 MILLION FROM 5391 MILLION THE PERSHARE FIGURES REFLECT A 2FOR1 STOCK SPLIT IN JUNE THE RESULTS SLIGHTLY EXCEEDED THE CONSENSUS OF ANALYSTS' EXPECTATIONS LOUISIANAPACIFIC'S STOCK FELL 875 CENTS TO 30 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY THE COMPANY SAID THAT SOME ANALYSTS EXPRESSED CONCERN THAT LUMBER PRICES MAY DECLINE IN THE THIRD AND FOURTH QUARTERS CRIMPING PROFITS LOUISIANAPACIFIC OFFICIALS SAID EARNINGS WERE BOOSTED BY STRONG WOOD PRICES COMPARED WITH A YEAR AGO DEMAND FOR WOOD PRODUCTS HAS BEEN SOMEWHAT ERRATIC FOLLOWING THE WILD GYRATIONS IN THE NATION'S HOUSING MARKET THIS YEAR BUT PROFITS IN THAT SECTOR HAVE BEEN PROPPED UP BY A NEARDOUBLING IN LUMBER PRICES IN THE SPRING FROM THE FALL PRICES HAVE SINCE SUBSIDED BY ABOUT 25 9307210033 930721 BUSINESS BRIEF AMERICAN BRANDS INC SECONDQUARTER PROFIT FELL 25 DUE TO CURRENCY RATES AMERICAN BRANDS INC SAID SECONDQUARTER PROFIT FELL 25 REFLECTING EXCHANGE RATE FLUCTUATIONS AND FIERCE COMPETITION IN THE TOBACCO INDUSTRY THE TOBACCO AND SPIRITS CONCERN IN OLD GREENWICH CONN EARNED 1513 MILLION OR 73 CENTS A SHARE COMPARED WITH 2026 MILLION OR 94 CENTS A SHARE A YEAR AGO RESULTS INCLUDED A 26 MILLION GAIN IN THE QUARTER RELATED TO THE EXCHANGE OF TRADEMARKS WITH BA T INDUSTRIES LTD REVENUE DROPPED 12 TO 28 BILLION FROM 32 BILLION REFLECTING TRANSLATION OF CURRENCIES AT LOWER RATES AMERICAN BRANDS SAID ITS GALLAHER TOBACCO UNIT WILL ELIMINATE 670 JOBS OR 15 OF ITS WORK FORCE BY MARCH 1994 THE MOVE INCLUDES THE CLOSING OF ONE OF ITS TWO CIGAR PRODUCTION FACILITIES AND A 24 REDUCTION IN EMPLOYMENT AT ITS BALLYMENA NORTHERN IRELAND FACILITY 9307210032 930721 TECHNOLOGY BRIEF CONNER PERIPHERALS INC COMPANY POSTS BIG DEFICIT BUT IT'S LESS THAN EXPECTED CONNER PERIPHERALS INC STILL REELING FROM A DISKDRIVE GLUT AND PRICE WARS POSTED A SECONDQUARTER LOSS OF 588 MILLION OR 119 A SHARE THAT COMPARES WITH NET INCOME OF 46 MILLION OR 77 CENTS A SHARE A YEAR EARLIER REVENUE TUMBLED 11 TO 4906 MILLION FROM 5513 MILLION THE LOSS WAS SLIGHTLY LESS THAN EXPECTED THE SAN JOSE CALIF DISK DRIVE MAKER HAD SAID IT WOULD POST A LARGER LOSS AND ANALYSTS SAID THE RESULTS COULD HAVE BEEN WORSE THE MARKET WAS RELIEVED THAT THE QUARTER WASN'T AS BAD AS IT FEARED SAID CHARLES R WOLF AN ANALYST AT FIRST BOSTON CORP IT WASN'T REALLY THAT BAD CONNER STOCK TRADING ON THE NEW YORK STOCK EXCHANGE CLOSED AT 10 UP 75 CENTS THE COMPANY BLAMED THE RESULTS ON SAVAGE PRICE PRESSURE A MARKET SOFTENED BY EXCESS PRODUCTION AND COSTS ASSOCIATED WITH THE TRANSITION TO NEW PRODUCTS FROM OLDER LESS PROFITABLE ONES 9307210031 930721 BUSINESS BRIEF DEAN WITTER DISCOVER CREDIT CARD/SECURITIES FIRM PROFIT SURGED IN 2ND PERIOD DEAN WITTER DISCOVER INC REPORTED A 62 SURGE IN EARNINGS IN THE SECOND PERIOD CITING A BOOM IN THE BROKERAGE BUSINESS AND AN INCREASE IN SPENDING BY DISCOVER CARD HOLDERS FOR THE PERIOD ITS FIRST FULL QUARTER AS A PUBLIC COMPANY DEAN WITTER REPORTED NET OF 1571 MILLION OR 92 CENTS A SHARE COMPARED WITH 969 MILLION OR 57 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 13 TO 142 BILLION FROM 127 BILLION WE HAD GROWTH IN OUR SECURITIES BUSINESS IN THE FIRST AND SECOND QUARTER ACROSS THE BOARD SAID CHAIRMAN PHILIP PURCELL ASSETS UNDER MANAGEMENT GREW IN THE FIRST SIX MONTHS TO 65 BILLION FROM 59 BILLION THE GROWTH RATE'S BEEN HIGH IN THE FIRM'S PROPRIETARY MUTUAL FUNDS PARTICULARLY EQUITY FUNDS HE SAID STOCK OF THE NEW YORKBASED CREDITCARD AND SECURITIESFIRM HYBRID CLOSED AT 3825 UP 175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FOR THE QUARTER DEAN WITTER DISCOVER'S BROKERAGE OPERATIONS HAD EARNINGS OF 697 MILLION UP 45 FROM THE YEAREARLIER 481 MILLION INVESTMENT BANKING REVENUE MORE THAN DOUBLED TO 1159 MILLION COMMISSION REVENUE SOARED 27 TO 213 MILLION CREDITCARD OPERATIONS EARNED 874 MILLION IN THE QUARTER UP 79 FROM 488 MILLION A YEAR AGO FOR THE FIRST HALF DEAN WITTER'S NET WAS 2935 MILLION UP 39 FROM A YEAR AGO ON REVENUE OF 281 BILLION 9307210030 930721 TECHNOLOGY BRIEF CRAY RESEARCH INC SUPERCOMPUTER MAKER PLANS ITS CHEAPEST SYSTEM EVER CRAY RESEARCH INC BESTKNOWN FOR ITS BIG AND EXPENSIVE SUPERCOMPUTERS INTRODUCED A 125000 SYSTEM ITS CHEAPEST EVER THE CRAY EL92 AS THE SYSTEM IS KNOWN IS ABOUT ONETHIRD THE COST OF THE EAGAN MINN COMPANY'S PREVIOUS ENTRYLEVEL MACHINE THE EL98 THAT SYSTEM IS PRICED AT ABOUT 350000 IN THE US CRAY SAID THE NEW SYSTEM DESIGNED AROUND ITS PROPRIETARY CENTRAL PROCESSOR AND AVAILABLE IN THE FOURTH QUARTER IS INTENDED TO BE USED BY SOFTWARE DEVELOPERS WRITING APPLICATIONS FOR CRAY'S MAINSTREAM SUPERCOMPUTERS INSTEAD OF WRITING SOFTWARE ON THE SUPERCOMPUTERS DEVELOPERS WILL BE ABLE TO TRANSFER THAT WORK TO THE NEW LOWERPRICED SYSTEMS FREEING UP THE BIG MACHINES CRAY OFFICIALS SAID THE EL92 ISN'T INTENDED AS A COMPETITOR TO MIDRANGE COMPUTER WORKSTATIONS OR SERVERS THAT COMPETITION IS EXPECTED TO COME LATER THIS YEAR WHEN CRAY INTRODUCES THE LATEST VERSION OF ITS SOCALLED SUPERSERVER MACHINE 9307210029 930720 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 9307210028 930721 MARKETING NEW PRICE MOVE BY PHILIP MORRIS INTENSIFIES WAR BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL PHILIP MORRIS COS IS UPPING THE ANTE IN THE CIGARETTE PRICE WAR IN A FURTHER SIGN THAT BRAND NAMES ARE LOSING VALUE AMONG PRICESENSITIVE CONSUMERS THE COMPANY CONFIRMED THAT IT PLANNED TO CUT PERMANENTLY PRICES ON MARLBORO AND ITS OTHER PREMIUM BRANDS MERIT BENSON & HEDGES VIRGINIA SLIMS AND PARLIAMENT THE CUTS MAKE PERMANENT A 40CENTOFF MARLBORO PROMOTION THAT BEGAN IN LATE MAY PHILIP MORRIS'S MAIN RIVAL RJR NABISCO HOLDINGS INC QUICKLY MATCHED THE LATEST PRICING MOVES TO KEEP SMOKERS FROM SWITCHING TO BARGAIN SUBSTITUTES PHILIP MORRIS ALSO SAID IT PLANNED TO BOOST PRICES OF ITS CHEAPEST CIGARETTES BY ABOUT A DIME A PACK AT RETAIL THE MOVES WOULD NARROW THE GAP IN COST BETWEEN THE HEAVILY MARKETED BRANDNAME CIGARETTES AND THE DISCOUNT SMOKES TO ABOUT 40 CENTS A PACK FROM ABOUT 90 CENTS THREE MONTHS AGO THE PRICE RISES AT THE LOW END MAY IGNITE A FRESH ROUND OF PRICECUTTING IN CHEAP CIGARETTES WHERE AGGRESSIVE PRICE INCREASES BY RJR AND PHILIP MORRIS HAVE DRIVEN PRICES UP NEARLY 30 SINCE APRIL THE LATEST PRICE RISES BY THE INDUSTRY GIANTS MIGHT SPUR SMALLER RIVALS TO MAKE A BID FOR SALES BY CUTTING PRICES ON THEIR DISCOUNT OFFERINGS SMALLER CIGARETTE COMPANIES SUCH AS AMERICAN BRANDS INC AND BA T INDUSTRIES PLC'S BROWN & WILLIAMSON TOBACCO CO DECLINED TO SAY WHETHER THEY WOULD FOLLOW THE PRICING OUTLINED BY PHILIP MORRIS EVEN WITHOUT RENEWED HOSTILITIES AT THE LOW END GARY BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO ESTIMATES THAT THE PERMANENT PRICE CUTS WILL COST THE CIGARETTE INDUSTRY 15 BILLION IN PROFITS NEXT YEAR PHILIP MORRIS'S SHARE OF THAT LOSS WILL BE 500 MILLION MR BLACK ESTIMATES BOTH PHILIP MORRIS AND RJR NABISCO HOPE TO OFFSET THE LOST PROFITS BY SELLING MORE FULLPRICE CIGARETTES THE PRICE WARS HAVE ALREADY TAKEN THEIR TOLL PHILIP MORRIS SAID SECONDQUARTER PROFITS PLUNGED 22 TO 105 BILLION OR 120 A SHARE BECAUSE OF THE MARLBORO PRICE CUTS OPERATING PROFIT FOR THE DOMESTIC TOBACCO UNIT FELL 53 TO 684 MILLION COMBINED PROFITS IN THE COMPANY'S OVERSEAS TOBACCO BUSINESS ITS KRAFT GENERAL FOODS UNIT AND MILLER BREWING CO ROSE MORE THAN 13 SALES INCREASED 42 TO 158 BILLION PHILIP MORRIS'S MOVE WAS A BELATED FORMAL ADMISSION THAT THE GLORY DAYS OF HIGH PROFITS ARE OVER FOR THE DOMESTIC CIGARETTE INDUSTRY BUT THE COMPANY DENIED THAT PRICE CUTS SIGNALED AN ACKNOWLEDGMENT THAT IT WAS TOO GREEDY OVER THE YEARS IT'S AN ACKNOWLEDGEMENT OF CURRENT ECONOMIC CONDITIONS SAID GEOFFREY C BIBLE EXECUTIVE VICE PRESIDENT WORLDWIDE TOBACCO FOR PHILIP MORRIS PHILIP MORRIS PLANS TO CAST THE PRICE CUTS IN ECONOMIC TERMS TO THE NATION'S SMOKERS THE COMPANY SAID IT PLANNED TO SEND LETTERS TO THE MAJORITY OF THE NATION'S 50 MILLION SMOKERS INFORMING THEM OF THE PRICES CUTS WHICH TAKE EFFECT AUG 9 WHEN THE CURRENT 40CENTAPACK PROMOTION FOR MARLBORO EXPIRES WILLIAM I CAMPBELL PRESIDENT OF PHILIP MORRIS'S DOMESTIC TOBACCO OPERATION SAID THE LETTER WILL SAY SOMETHING TO THE EFFECT THAT HEY WE UNDERSTAND THAT THESE ARE DIFFICULT ECONOMIC TIMES AND THAT MARLBORO AND OTHER BRANDS SHOULD BE PRICED APPROPRIATELY USING THE JARGON OF OTHER PACKAGEDGOODS MARKETERS PHILIP MORRIS EXECUTIVES RERRED TO ITS NEW PRICES AS EVERYDAY LOW PRICES PHILIP MORRIS SAID THE MARLBORO PROMOTION HAS EXCEEDED ITS EXPECTATIONS WITH THE BRAND GAINING UP TO FOUR SHARE POINTS IN SOME MARKETS AFTER EIGHT MONTHS OF DECLINE MARLBORO BEGAN GAINING SHARE IN APRIL PHILIP MORRIS SAID MARLBORO CONTROLLED 436 OF THE MARKET AT THE END OF MAY PHILIP MORRIS STOCK CLOSED UP 375 CENTS AT 4850 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY RJR NABISCO HOLDINGS CLOSED DOWN 125 CENTS AT 550 IN COMPOSITE BIG BOARD TRADING IN ADDITION TO THE MARLBORO PROMOTION PHILIP MORRIS EXECUTIVES DISCLOSED THAT ITS HEAVY SUPPORT OF ITS BASIC DEEPDISCOUNT BRAND HAVE MADE THE DISCOUNT SMOKE THE NATION'S THIRDBEST SELLING CIGARETTE BASIC HAS ABOUT 5 OF THE TOTAL CIGARETTE MARKET BEHIND MARLBORO AND NO 2 WINSTON IN FEBRUARY PHILIP MORRIS SPRUCED UP THE PACKAGING FOR BASIC AND IN AN UNUSUAL STEP BEGAN PROMOTING THE BRAND WITH THE EXTENSIVE USE OF INSERTS IN SUNDAY PAPERS AN ADVERTISING CAMPAIGN IS ALSO UNDER CONSIDERATION I HAVEN'T SEEN ANYBODY PUT NATIONAL ADVERTISING DOLLARS BEHIND A DISCOUNT BRAND BEFORE SAID ROB HUBERMAN GENERAL MANAGER OF STARKMAN DISTRIBUTORS AN ATLANTIC CITY NJ CIGARETTE DISTRIBUTOR IT CHANGED THE WAY THE GAME IS PLAYED BUT MR HUBERMAN AND OTHERS BELIEVE THAT THE SUCCESS OF BASIC WILL BRING A FRESH ROUND OF COMPETITION AT THE LOW END THAT COULD UNDERCUT PHILIP MORRIS'S STRATEGY PHILIP MORRIS DROPPED PRICES FOR ITS MIDDLELEVEL ALPINE BRAND DOWN TO THE BASIC LEVEL SO THERE ARE NOW ONLY TWO SEPARATE PRICES FOR THE COMPANY'S CIGARETTES IT IS JUST A MATTER OF TIME BEFORE SOMEBODY USES A LOW PRICE AS A WAY TO INTRODUCE A NEW CIGARETTE SAID MR HUBERMAN 9307210027 930721 INTERNATIONAL BRIEF DAIICHI CORP RESCUE PLAN FROM 4 BANKS WAIVES INTEREST ON LOANS FOUR JAPANESE BANKS HAVE PUT TOGETHER AN ADDITIONAL RESCUE PACKAGE FOR DAIICHI CORP A HEAVILY INDEBTED TOKYO REALESTATE COMPANY MITSUI TRUST & BANKING CO YASUDA TRUST & BANKING CO CHUO TRUST & BANKING CO AND NIPPON CREDIT BANK WILL WAIVE THE INTEREST ON LOANS TO DAIICHI BETWEEN JUNE 1993 AND MARCH 1995 ACCORDING TO DAIICHI AND MITSUI ABOUT 70 OTHER LENDERS TO DAIICHI WILL LOWER THE INTEREST THEY CHARGE THE COMPANY ACCORDING TO A REPORT IN THE NIHON KEIZAI SHIMBUN JAPAN'S ECONOMIC DAILY MITSUI AND THE OTHER THREE MAIN CREDITOR BANKS ANNOUNCED A RESCUE PACKAGE FOR DAIICHI AT THE END OF MARCH 1992 AT THAT TIME THE FOUR LENDERS CUT INTEREST ON LOANS TO DAIICHI TO 3 DAIICHI'S SITUATION HASN'T IMPROVED HOWEVER AND ITS NONPERFORMING LOANS HAVE BEEN INCREASING AT THE END OF MARCH THE COMPANY HAD ABOUT 550 BILLION YEN 507 BILLION IN DEBT INCLUDING 300 BILLION YEN OWED TO THE FOUR MAIN BANKS 9307210026 930721 ECONOMY CLINTON ADMINISTRATION PRESSES DRIVE TO WRAP UP SIDE DEALS ON TRADE PACT BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE ITS MOUNTING DIFFICULTIES WITH THE NORTH AMERICAN FREE TRADE AGREEMENT THE CLINTON ADMINISTRATION IS PRESSING AHEAD TO COMPLETE SIDE DEALS TO THE PACT DURING THE NEXT FEW WEEKS AND BEGIN SELLING THE DEAL IN CONGRESS THE WHITE HOUSE PLANS TO NAME CHICAGO LAWYER AND LOBBYIST WILLIAM DALEY AS NAFTA CZAR RESPONSIBLE FOR RALLYING SUPPORT FROM BUSINESS AND BLUNTING OPPOSITION FROM LABOR MR DALEY BROTHER OF CHICAGO MAYOR RICHARD DALEY WAS PASSED OVER AS TRANSPORTATION SECRETARY BY PRESIDENT CLINTON IN FAVOR OF FEDERICO PENA US TRADE REPRESENTATIVE MICKEY KANTOR WILL PLAY AN IMPORTANT ROLE IN LOBBYING CONGRESS DIRECTLY ON THE TRADE ACCORD ADMINISTRATION OFFICIALS SAID ON MONDAY THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL HELD A MEETING TO DISCUSS FUNDING MECHANISMS TO PAY FOR ENVIRONMENTAL CLEANUPS AND OTHER CONSTRUCTION ALONG THE USMEXICO BORDER AMONG THE POSSIBILITIES ESTABLISHING A REGIONAL DEVELOPMENT BANK WITH 1 BILLION IN SEED CAPITAL FROM THE US MEXICO AND CANADA EXPANDING THE INTERAMERICAN DEVELOPMENT BANK TO HANDLE THOSE CHORES OR STRENGTHENING THE INTERNATIONAL BOUNDARY AND WATER COMMISSION A RECOMMENDATION IS EXPECTED TO BE MADE TO CABINETLEVEL OFFICIALS WITHIN THE NEXT FEW WEEKS THE FUNDING REQUIREMENTS MAY BE IMMENSE THE SIERRA CLUB ESTIMATES THAT 20 BILLION IN ENVIRONMENTAL SPENDING ALONG THE BORDER MAY BE REQUIRED DURING THE NEXT 10 YEARS COMMERCE SECRETARY RON BROWN ALSO HAS TALKED OF SPENDING REQUIREMENTS OF THAT MAGNITUDE IN A BID TO REACH A DEAL OVER LABOR AND ENVIRONMENTAL SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT MR KANTOR PLANS TO FLY TO MEXICO TODAY TO MEET WITH THAT COUNTRY'S PRESIDENT CARLOS SALINAS DE GORTARI AND MEXICO'S TRADE MINISTER AT THE SAME TIME NEGOTIATORS FROM THE US MEXICO AND CANADA ARE MEETING ALL THIS WEEK IN OTTAWA THE ADMINISTRATION ALSO TOOK ITS CASE FOR THE TRADE ACCORD TO THE COURTS YESTERDAY THE JUSTICE DEPARTMENT ASKED THE US APPEALS COURT HERE TO OVERTURN A LOWER COURT RULING THAT THE ADMINISTRATION PREPARE AN ENVIRONMENTALIMPACT STATEMENT FOR THE NORTH AMERICAN TRADE PACT ADMINISTRATION LAWYERS ARGUED THAT THE RULING AMOUNTED TO AN IMPROPER INFRINGEMENT ON PRESIDENTIAL AUTHORITY A THREEJUDGE APPEALS COURT PANEL WILL HEAR ARGUMENTS ON THE APPEAL AUG 24 IF THE JUNE 30 RULING BY FEDERAL JUDGE CHARLES RICHEY ISN'T OVERTURNED THE ADMINISTRATION FEARS THE TRADE AGREEMENT COULD BE KILLED COMPLETING AN ENVIRONMENTALIMPACT STATEMENT COULD TAKE MONTHS IF NOT YEARS AND WOULD BE SUBJECT TO APPEAL THAT COULD DELAY FEDERAL ACTION EVEN LONGER JUDGE RICHEY'S DECISION PRESENTS MR CLINTON WITH AN UNPRECEDENTED DILEMMA THE JUSTICE DEPARTMENT ARGUED IN A BRIEF WITH THE APPEALS COURT EITHER HE WITHHOLDS A MAJOR INTERNATIONAL AGREEMENT FROM CONGRESS OR TRANSMITS THE AGREEMENT ON SCHEDULE AND PUTS HIS CHIEF EMISSARY FOR INTERNATIONAL TRADE AT RISK OF CONFLICT WITH THE DISTRICT COURT THE DEPARTMENT CRITICIZED JUDGE RICHEY'S INTRUSION ON THE PRESIDENT'S INHERENT AUTHORITY TO CONDUCT FOREIGN AFFAIRS AND ENTER INTO INTERNATIONAL AGREEMENTS IT ARGUED THAT THE LAW GOVERNING ENVIRONMENTALIMPACT STATEMENTS DOESN'T APPLY TO THE PRESIDENT BUT THAT JUDGE RICHEY MISTAKENLY IMPOSED THE REQUIREMENT BECAUSE THE PACT WAS THE RESPONSIBILITY OF THE US TRADE REPRESENTATIVE 9307210025 930721 WHAT'S NEWS BUSINESS AND FINANCE GREENSPAN LAID THE FOUNDATION FOR A MOVE TO RAISE INTEREST RATES IF THE ECONOMY CONTINUES TO STRENGTHEN SAYING THAT THE INFLATION NEWS OF THIS YEAR HAS BEEN DISAPPOINTING THE FED CHAIRMAN SAID THAT ADJUSTED FOR INFLATION THE SHORTTERM INTEREST RATES THAT THE FED CONTROLS ARE CLOSE TO ZERO AND INDICATED THAT THEY CAN'T REMAIN THAT LOW INDEFINITELY STOCK AND BOND PRICES FELL ON GREENSPAN'S COMMENTS BUT RECOVERED SOME OF THE LOSSES THE DOW INDUSTRIALS FELL SHARPLY AT FIRST BUT ENDED 950 POINTS HIGHER AT 354478 THE TREASURY BENCHMARK 30YEAR ISSUE'S PRICE WHICH HAD FALLEN MORE THAN HALF A POINT ENDED OVER 1/8 POINT LOWER SEARS'S NET MORE THAN TRIPLED IN THE SECOND QUARTER SIGNALING A LONGAWAITED TURNAROUND OF ITS RETAIL OPERATIONS MAY BE AT HAND SEARS'S STOCK SURGED 4125 OR 9 TO 50125 GIVING A BOOST TO THE OVERALL STOCK MARKET CITICORP'S PROFIT SOARED MORE THAN THREEFOLD IN THE SECOND QUARTER FIRST INTERSTATE CHEMICAL WELLS FARGO AND NATIONSBANK POSTED SIZABLE GAINS HOUSING STARTS WERE FLAT IN JUNE DESPITE THE LOWEST MORTGAGE INTEREST RATES IN MORE THAN 20 YEARS DISNEY BEGAN MARKETING THE FIRST 100YEAR BONDS TO BE SOLD SINCE 1954 A MOVE TO LOCK IN LOW INTEREST RATES UAL'S THREE MAJOR UNIONS ARE PROPOSING A PLAN UNDER WHICH UNITED AIR'S EMPLOYEES WOULD GRANT SOME 36 BILLION IN CONCESSIONS OVER FIVE YEARS IN RETURN FOR 60 OWNERSHIP IN UAL A GERMAN COURT RULED A MAGAZINE HAD ENOUGH EVIDENCE TO PUBLISH ARTICLES ABOUT GM'S CHARGES THAT ITS EXPURCHASING CHIEF TOOK WITH HIM SENSITIVE DOCUMENTS WHEN HE JOINED VW MONSANTO'S PROFIT NEARLY DOUBLED IN THE LATEST QUARTER AFTER MIDWESTERN FARMERS THEIR FIELDS TOO WET TO PLOW BOUGHT RECORD AMOUNTS OF MONSANTO'S HERBICIDES TO CLEAR FIELDS FOR PLANTING PHILIP MORRIS CONFIRMED IT WILL PERMANENTLY SLASH THE PRICES OF ITS PREMIUM BRANDS A MOVE HEIGHTENING THE CIGARETTE PRICE WAR AND FORCING RIVALS TO MAKE PRICE CUTS THAT MAY COST HUNDREDS OF MILLIONS IN ANNUAL PROFITS THE CLINTON ADMINISTRATION IS PRESSING AHEAD TO COMPLETE SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT IN THE NEXT FEW WEEKS AND BEGIN SELLING THE DEAL IN CONGRESS A MASSACHUSETTS MUNI BOND ISSUER IS EXPECTED TO FIRE ITS FINANCIAL ADVISER AND SENIOR UNDERWRITERS AFTER A PROBE FOUND MERRILL LYNCH ONE OF THE UNDERWRITERS GAVE THE ADVISER MONEY MERCK'S EARNINGS FELL SHARPLY IN THE SECOND QUARTER BECAUSE OF A RESTRUCTURING CHARGE FOR COSTCUTTING MOVES THAT ELIMINATED 2100 JOBS MORE THAN TWICE THOSE TARGETED IN MARCH TOKYO STOCKS FELL TUESDAY IN THIN DEALINGS WEIGHED DOWN BY CONTINUED JAPANESE POLITICAL UNCERTAINTIES AND WEAK ECONOMIC INDICATORS THE NIKKEI INDEX FELL 11292 POINTS TO 2003800 LONDON STOCKS FELL SHARPLY LED BY THE BANKING AND CONSUMERGOODS SECTORS COASTAL CHAIRMAN OSCAR WYATT SAID HE WILL TAKE BACK THE JOB OF CHIEF EXECUTIVE THAT HE GAVE UP IN 1989 BONDS LEHMAN BROTHERS TREASURY INDEX 536986 OFF 968 COMMODITIES OIL 1709 A BARREL OFF 61 CENTS DOW JONES FUTURES INDEX 12815 UP 035 SPOT INDEX 12304 UNCHANGED DOLLAR 10815 YEN OFF 033 16690 MARKS OFF 00380 THE DOLLAR STOOD AT 16996 MARKS LATE TUESDAY AFTERNOON IN NEW YORK THE RATE WAS MISSTATED AS 16690 MARKS IN YESTERDAY'S EDITION 9307210024 930721 BUSINESS BRIEF ROHR INC COMPANY SAYS 900 WORKERS WILL BE LAID OFF IN 1993 ROHR INC SAID ABOUT 900 ADDITIONAL EMPLOYEES WILL BE LAID OFF BY THE END OF 1993 AS IT CONTINUES TO PARE EXPENSES TO MATCH ITS SHRINKING BUSINESS BASE THE CHULA VISTA CALIF MAKER OF JETENGINE NACELLES HAS BEEN CUTTING EMPLOYMENT MUCH FASTER THAN IT ANTICIPATED IN LATE MAY WHEN IT REPORTED A NET LOSS OF 222 MILLION FOR ITS THIRD QUARTER ENDED MAY 2 ROHR SAID THEN THAT IT PLANNED TO CUT 450 WORKERS FROM ITS PAYROLL OF 7450 MARK BERGHERR VICE PRESIDENT OF CORPORATE COMMUNICATIONS SAID ROHR EMPLOYMENT IS NOW AT ABOUT 6600 AND THE COMPANY EXPECTS THE LAYOFFS TO LEVEL OFF WHEN EMPLOYMENT REACHES ABOUT 5700 NEAR THE END OF THE YEAR I DON'T KNOW IF THAT'S THE LAST OF IT SAID MR BERGHERR EXPLAINING THAT ROHR WILL HAVE TO CONTRACT ITS BUSINESS AS LONG AS ENGINE AND JET MAKERS CONTINUE TO SEE THEIR ORDERS SHRINK ROHR MAKES NACELLES FOR AIRLINERS BUILT BY BOEING CO EUROPE'S AIRBUS INDUSTRIE AND MCDONNELL DOUGLAS CORP 9307210023 930721 INTERNATIONAL VW RECEIVES SETBACK IN EFFORTS TO BLUNT CHARGES AGAINST LOPEZ BY AUDREY CHOI AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL A GERMAN COURT DEALT A BLOW TO EFFORTS BY VOLKSWAGEN AG AND ITS NEW PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA TO BLUNT CHARGES OF INDUSTRIAL ESPIONAGE LEVELED BY GENERAL MOTORS CORP MEANWHILE A STATEMENT APPEARED IMMINENT IN THE GERMAN CRIMINAL INVESTIGATION OF MR LOPEZ THE ALMOST DAILY VOLLEYS OF BAD NEWS FOR VW AND MR LOPEZ ARE ADDING TO FEARS IN GERMAN MARKETS THAT THE MEN LEADING VW'S FINANCIALTURNAROUND EFFORT MR LOPEZ AND CHAIRMAN FERDINAND PIECH COULD BE TOPPLED BY THE SCANDAL IN AN OTHERWISE BULLISH FRANKFURT MARKET VW SHARES FELL 680 MARKS TO 351 MARKS 206 YESTERDAY MOST OF THE FALL CAME BEFORE THE HAMBURG COURT DECISION WAS ANNOUNCED JUST 15 MINUTES AHEAD OF THE CLOSE OF TRADING BUT JITTERS ABOUT THE POSSIBLE FALLOUT FOR MR LOPEZ WERE CLEARLY AN ADDED INCENTIVE TO SELL VW STOCK TRADERS SAID TRADERS MAY HAVE MORE TO CHEW ON SOON THE PUBLIC PROSECUTOR'S OFFICE IN DARMSTADT GERMANY WHICH IS INVESTIGATING CHARGES THAT MR LOPEZ GM'S FORMER PURCHASING CZAR AND SEVERAL COLLEAGUES TOOK CONFIDENTIAL GM INFORMATION WHEN THEY JUMPED TO VW IN MARCH SAID IT WOULD ISSUE A STATEMENT TODAY OR TOMORROW TO UPDATE THE STATUS OF ITS INVESTIGATION THE PROSECUTOR'S STATEMENT CAME AS THE HAMBURG DISTRICT COURT EFFECTIVELY DECLARED MR LOPEZ'S DENIALS OF WRONGDOING UNCONVINCING AND CLEARED THE WAY FOR THE GERMAN MAGAZINE DER SPIEGEL TO RESUME PRINTING STORIES ABOUT THE ALLEGATIONS THE MORE INFORMATION THAT BECOMES KNOWN THE MORE VW IS SUFFERING SAID BARBARA SCHUMACHER AN INSTITUTIONAL ADVISOR AT MERCK FINK & CO IN DUESSELDORF I AM TELLING MY CUSTOMERS TO SELL VW MEANWHILE CONTINUED ITS EFFORTS TO DISTANCE ITSELF FROM ITS EMBATTLED PURCHASING BOSS IT'S NOT VOLKSWAGEN'S CONCERN A VW SPOKESMAN SNAPPED A FEW HOURS BEFORE THE COURT RULING THE ACCUSATIONS CONCERN INDIVIDUALS AND WHAT THEY DID WHILE THEY WERE GENERAL MOTORS CORP EMPLOYEES IT DOESN'T AFFECT VW THE HAMBURG COURT RULED THAT DER SPIEGEL HAD SUFFICIENT EVIDENCE TO RESUME PUBLISHING ARTICLES ABOUT GM'S CHARGES THAT MR LOPEZ AND COLLEAGUES TOOK CONFIDENTIAL DOCUMENTS THE COURT DIDN'T RULE ON WHETHER THE ALLEGATIONS WERE TRUE AND IT FOUND THAT DER SPIEGEL LACKED EVIDENCE TO BACK UP SOME POINTS IN A LENGTHY MAY ARTICLE BUT BY RULING IN DER SPIEGEL'S FAVOR ON MOST OF THE KEY POINTS DISPUTED BY VW THE COURT INDICATED THAT STATEMENTS BY MR LOPEZ AND HIS COLLEAGUES DENYING THE MAGAZINE'S CHARGES WEREN'T CONVINCING DER SPIEGEL COUNTERED VW'S DENIALS WITH WRITTEN AND ORAL TESTIMONY FROM 22 GM EMPLOYEES WHO TESTIFIED THAT MR LOPEZ AND HIS COLLEAGUES RECEIVED LARGE AMOUNTS OF CONFIDENTIAL DATA ON FUTURE PRODUCTS PARTS PRICES AND MACHINERY COSTS JUST BEFORE THE SPANISH EXECUTIVE JUMPED TO VW VW SAID THE DECISION WASN'T A RULING ON THE TRUTH OF THE STATEMENTS THEMSELVES THE COMPANY DIDN'T SAY IF IT WOULD APPEAL AT GM HOWEVER OFFICIALS WERE DELIGHTED OUR WITNESSES EITHER THROUGH THEIR DIRECT TESTIMONY OR WRITTEN DEPOSITIONS WERE ESSENTIALLY BELIEVED DAVID HERMAN CHAIRMAN OF GM'S ADAM OPEL AG UNIT IN GERMANY SAID IN A STATEMENT IN ALL THE SEMINAL AREAS OF OUR COMPLAINT THE GAG ORDER IS LIFTED THAT CERTAINLY PROVIDES MORAL SUPPORT FOR US AND WE'RE SATISFIED 9307210022 930721 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 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 306 30 TO 59 DAYS 309 60 TO 89 DAYS 311 90 TO 119 DAYS 314 120 TO 149 DAYS 316 150 TO 179 DAYS 325 180 TO 229 DAYS 332 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 316 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 266 THREE MONTHS 287 SIX MONTHS 305 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 312 THREE MONTHS 326 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 310 90 DAYS 312 120 DAYS 314 150 DAYS 323 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 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 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 11/16 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 691 60 DAYS 698 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 686 60 DAYS 696 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 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 9307210021 930721 INTERNATIONAL DUTCH PRODUCER PRICES STEADY AMSTERDAM PRODUCER PRICES IN THE NETHERLANDS WERE UNCHANGED IN MAY FROM APRIL AND WERE DOWN 19 FROM 12 MONTHS EARLIER THE CENTRAL BUREAU FOR STATISTICS SAID THE MAY FIGURE EXTENDED THE FLATTOLOWER PRICE TREND EVIDENT SINCE DECEMBER 1992 DURING THAT PERIOD THE GENERAL PRODUCER PRICE INDEX HAS HARDLY CHANGED 9307210020 930721 INTERNATIONAL SPANISH AUTO OUTPUT DROPS MADRID SPAIN'S MOTOR VEHICLE PRODUCTION DROPPED 92 IN JUNE TO 192189 VEHICLES COMPARED WITH JUNE 1992 THE SPANISH ASSOCIATION OF CAR MAKERS OR ANFAC SAID THE NUMBER OF VEHICLES PRODUCED IN THE FIRST SIX MONTHS OF 1993 TUMBLED 22 TO 939823 COMPARED WITH THE SAME SIX MONTHS A YEAR EARLIER ANFAC REPORTED THE ASSOCIATION DIDN'T OFFER YEAREARLIER PRODUCTION FIGURES 9307210019 930721 PEPPERAND SALT OF EVIDENCE AGAINST THEM A TRUE FRIEND IS SOMEONE WHO WHEN YOU'VE MADE A COMPLETE FOOL OF YOURSELF INSISTS THAT IT'S NOT A PERMANENT STATE DENIM CUTOFFS RECESSIVE JEANS 9307210018 930721 CORRECTIONS & AMPLIFICATIONS COMPUTER TECHNOLOGY MANAGEMENT INC WHICH HANDLES DATA PROCESSING FOR PILKINGTON PLC'S LIBBEYOWENSFORD CO UNIT HAS NO RELATIONSHIP WITH A EPSTEIN & SONS INTERNATIONAL INC AS WAS REPORTED IN AN ARTICLE YESTERDAY AN EPSTEIN UNIT THAT HAS THE SAME NAME IS A SEPARATE CONCERN 9307210017 930721 MARKETING BRIEF NOTED NEWSPAPERS NEW YORK TIMES CO WILL INTRODUCE A SPANISH LANGUAGE WEEKLY SEPT 2 FOR LATINO RESIDENTS OF CALIFORNIA'S SANTA BARBARA AND VENTURA COUNTIES THE FREE PAPER EL NUEVO TIEMPO WILL BE PRINTED AND DISTRIBUTED BY THE TIMES'S REGIONAL SANTA BARBARA NEWSPRESS WHO'S NEWS HARRIS L KATLEMAN 62 WAS NAMED CHIEF OPERATING OFFICER OF MARK GOODSON PRODUCTIONS AN INDEPENDENT PRODUCER OF TV GAME SHOWS HE WAS PRESIDENT OF NEWS CORP'S TWENTIETH CENTURY FOX TELEVISION UNIT FOR 13 YEARS BEFORE RESIGNING LAST YEAR HE HAD BEEN EXECUTIVE VICE PRESIDENT OF THENNAMED GOODSONTODMAN PRODUCTIONS FROM 1960 TO 1970 9307210016 930721 BY ANY OTHER NAME MOST BRITISH VILLAGES MAY STILL SOUND SILLY FROM DORKING TO GIGGLESWICK RESIDENTS MUST ENDURE ODDSOUNDING ADDRESSES BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE SNORING ENGLAND RESIDENTS OF THIS SLEEPY CROSSROADS ARE TIRED OF JOKES ABOUT THEIR VILLAGE AND NO ONE FINDS THE JIBES MORE WEARISOME THAN LITTLE SNORING'S MOST FAMOUS SON I'M VERY ACTIVE ALWAYS HAVE BEEN SAYS ERIC GOTOBED LEAVING HOME AT DAWN TO CUT WEEDS IN HIS PASTURE AND I DON'T SNORE ASK MY WIFE HIS WIFE PEERS WARILY FROM BEHIND HALFDRAWN CURTAINS THE ELDERLY COUPLE HAS LONG ENDURED PHONE CALLS FROM CHILDREN MR GOTOBED ARE YOU SLEEPING AND FROM MAILORDER HOUSES WHICH HAVE DOUBTS ABOUT CHECKS FROM ONE E GOTOBED LITTLE SNORING THEN THERE ARE NOSY TRAVELERS WHO HEAR ABOUT MR GOTOBED AT A NEARBY PUB AND COME TO SEE IF THE LOCALS ARE PULLING THEIR LEG I WISH PEOPLE WOULD GIVE THE WHOLE BUSINESS A REST MR GOTOBED SAYS NEW YORK HAS FLUSHING MARYLAND HAS BORING PENNSYLVANIA OF COURSE HAS INTERCOURSE BUT PROBABLY NO TERRITORY IN THE ENGLISHSPEAKING WORLD CAN MATCH BRITAIN'S WEALTH OF LUDICROUS PLACE NAMES CRACKPOT DORKING FATTAHEAD GOONBELL GIGGLESWICK NETHER POPPLETON WORMELOW TUMP YONDER BOGNIE THE LITANY WHICH SWELLS WITH EACH PAGE OF THE ATLAS SOUNDS LIKE A MONTY PYTHON GAG SO DOES LIFE IN SOME OF THESE VILLAGES IRENE CAMP IS SECRETARY OF THE UGLEY WOMEN'S INSTITUTE A GROUP THAT HOLDS SCHOLARLY LECTURES AND AFTERNOON TEAS IT MEETS EVERY MONTH AT THE UGLEY VILLAGE HALL EMERGING FROM A RECENT MEETING MS CAMP SAYS THAT 75 YEARS OF TEA SCONES AND SPEECHES HAVEN'T QUELLED SNICKERS ABOUT THE GROUP'S NAME WE TRY TO CALL OURSELVES THE WOMEN'S INSTITUTE OF UGLEY SHE SAYS BUT IT NEVER STICKS THE NAME PROVES MOST AWKWARD AT NATIONAL CONFERENCES WHEN WOMEN'S INSTITUTES GATHER FROM ACROSS BRITAIN AND ARE IDENTIFIED BY THEIR VILLAGE NAMES WE HAVE TO WALK AROUND ALL DAY SAYING WE'RE UGLEY' MS CAMP COMPLAINS UGLEY IS ACTUALLY AN ATTRACTIVE VILLAGE OF THATCHROOFED COTTAGES ITS NAME DERIVES FROM AN ANGLOSAXON PHRASE THAT MEANS UCGA'S CLEARING THE NEARBY HAMLET OF NASTY ALSO PICTURESQUE GETS ITS NAME FROM MIDDLE ENGLISH FOR PLACE AT THE EAST SETTLEMENT SNORING REFERS TO AN ANCIENT SETTLER AS DOES SEETHING MOST OF THE NAMES THAT WE FIND RIDICULOUS WERE ORIGINALLY QUITE BORING SAYS KENNETH CAMERON DIRECTOR OF THE ENGLISH PLACE NAMES SOCIETY WHICH HAS PUBLISHED 66 VOLUMES ON NAMES ACROSS ENGLAND DR CAMERON IS FLUENT IN SEVERAL DEAD LANGUAGES AND A FERVID READER OF MUSTY TEXTS LIKE THE DOMESDAY BOOK HE CAN TELL YOU THAT CRACKPOT IS OLD DANISH FOR A RIFT WHERE CROWS NEST AND THAT NOTTINGHAM WAS ONCE CALLED SNOTTINGHAM HOMESTEAD OF SNOT'S PEOPLE THE S VANISHED SOON AFTER 1066 BECAUSE THE NORMANS HAD TROUBLE WITH SN SOUNDS LIKE OTHER SCHOLARS DR CAMERON SAYS BRITAIN'S SURFEIT OF SILLY NAMES IS DUE TO THE NATION'S AGE ROMANS SAXONS VIKINGS AND OTHER INVADERS ALL ADDED TO BRITAIN'S STOCK OF PLACE NAMES AND AS ENGLISH FERMENTED MANY OLD WORDS ASSUMED NEW MEANINGS SCRIBES AND SURVEYORS HASTENED THIS PROCESS BY MISSPELLING WORDS SIMPLIFYING ARCANE NAMES OR SUBSTITUTING HOMONYMS OF WHOLLY DIFFERENT MEANING TO MODERN EARS BLUBBERHOUSES SUGGESTS SOME TIE TO WHALE FAT BUT RESIDENTS OF THIS INLAND VILLAGE CLAIM THE NAME REFERS TO CHILDREN WHO ONCE BLUBBERED OR WEPT AT A DICKENSIAN MILL HERE IN FACT SAYS DR CAMERON BLUBBERHOUSES IS SIMPLY A FORM OF BLUBERHUSUN A MEDIEVAL PHRASE FOR HOUSES NEAR A BUBBLING SPRING BRITAIN'S RURAL PAST ALSO HAS SOWN THE MAP WITH SILLY NAMES THAT REEK OF FIELDS AND BARNYARDS HORSEY BUNNY CORNEY SWINE STY PIG STREET DOG VILLAGE DONKEY TOWN TOAD'S MOUTH MAGGOTS END OTHER NAMES EVOKE BRITAIN'S SODDEN LANDSCAPE FOULBOG DULL MUCK MOLD MOSS OF BARMUCKITY DIGESTION SEEMS ANOTHER THEME BELCHFORD BURPHAM LICKEY END SPITAL IN THE STREET OVER TIME MANY VILLAGES ALSO HAVE SUBDIVIDED WITH SILLY CONSEQUENCES GREAT SNORING AND LITTLE SNORING MIDDLE WALLOP AND NETHER WALLOP HELIONS BUMPSTEAD AND STEEPLE BUMPSTEAD SHEEPY MAGNA LATIN FOR BIG AND SHEEPY PARVA LATIN FOR SMALL THEN THERE IS THE ENGLISH HABIT OF DESIGNATING UPPER AND LOWER ENDS OF VILLAGES WHICH MAY GROW INTO COMMUNITIES OF THEIR OWN OPTIMISTS FOR INSTANCE WILL FEEL AT HOME IN THE HAMLET OF UPPERUP WHICH IS REACHED APPROPRIATELY VIA HIGH STREET IF THE HAMLET GROWS ANY MORE WE'LL HAVE TO CALL ONE END OF IT UPPER UPPERUP JOKES CHARLES HADFIELD A LOCAL HISTORIAN UNLIKE MR HADFIELD MOST INHABITANTS OF SILLY PLACES DON'T SEE ANYTHING ODD ABOUT THEIR ADDRESS PHONE CALLS TO PUBS AND POST OFFICES TYPICALLY ARE MET WITH POLITE BEWILDERMENT OR SUGGESTIONS OF OTHER PLACES TO CALL WE DON'T EVEN HAVE PIGS HERE JUST SHEEP SAYS MARY SOMERVILLE THE POSTMISTRESS FOR SWINEY HAVE YOU TRIED SWINEFLEET THE GIGGLESWICK POSTMASTER THINKS A NEIGHBORING VILLAGE WIGGLESWORTH IS FAR SILLIER WHILE IN SHEEPY MAGNA THE POSTMASTER RECOMMENDS CALLING NEARBY BARTON IN THE BEANS ALSO TYPICAL IS THE RESPONSE OF ROGER RADCLIFFE AN OFFICIAL IN CORNWALL WHOSE PARISH INCLUDES GOONBELL GOONGUMPUS GOONEARL GOONOWN AND GOONINNIS GOON IS A CORNISH WORD FOR PASTURE IT'S TRUE WE HAVE A LOT OF GOONS HERE HE SAYS BUT I'VE NEVER THOUGHT THAT WAS FUNNY HE PAUSES THEN CHUCKLES AND ADDS WHAT ABOUT PIDDLE NOW THAT'S AMUSING ISN'T IT NOT IF YOU LIVE THERE IAN CURTHOYS A PIG FARMER IN NORTH PIDDLE GRIPES THAT PASSERSBY OFTEN POSE FOR SNAPSHOTS BESIDE SIGNS FOR THE VILLAGE USUALLY WHILE PIDDLING OTHER TRAVELERS STEAL THE SIGNS A COMMON NUISANCE IN VILLAGES WITH SILLY NAMES ASKED ABOUT THE ORIGIN OF PIDDLE'S NAME MR CURTHOYS REPLIES IT'S A WET PLACE ISN'T IT SLOSHING THROUGH THE MUD TO FEED HIS SOWS HE SMILES ADDING THERE WAS A SOUTH PIDDLE ONCE BUT IT DRIED UP TO AVOID UNNECESSARY GUFFAWS MR CURTHOYS LISTS HIS TELEPHONE IN A NEARBY VILLAGE UPTON SNODSBURY OTHERS RESORT TO EVASIVE ELOCUTION RESIDENTS OF SWINEY SAY SWEENEY AND SOME IN UGLEY SAY OOJLEY IN PRIM VICTORIAN DAYS AN UGLEY MINISTER EVEN MANAGED TO CHANGE THE VILLAGE'S NAME TO OAKLEY BUT IT REVERTED TO UGLEY WHEN MAIL KEPT GOING TO AN OLDER OAKLEY NEARBY NOW MOST PEOPLE ARE PROUD TO BE UGLEY WHEN VIRGINIA TROWER OPENED A PRESCHOOL THIS YEAR SHE NAMED IT THE UGLEY DUCKLING NURSERY SCHOOL SILLY NAMES ALSO SPAWN SILLY STORIES VILLAGERS IN UGLEY AND NASTY TELL OF A LOCAL NEWSPAPER HEADLINE THAT READ NASTY MAN WEDS UGLEY WOMAN IN NORFOLK PEOPLE MAKE A SIMILAR CLAIM SNORING MAN TAKES SEETHING BRIDE YET NO ONE RECALLS EVER SEEING SUCH HEADLINES NOR CAN LOCAL NEWSPAPERS FIND ANY RECORD OF THEM SOME SILLY NAMES THOUGH DO WORK THEIR WAY INTO PRINT IN ENGLISH SLANG PRAT OR PRATT IS A TERM OF ABUSE ROUGHLY AKIN TO JERK IT ALSO HAS A VULGAR ANATOMICAL MEANING PREDICTABLY THEN RESIDENTS OF PRATT'S BOTTOM OFTEN ARE THE BUTT OF DUMB JOKES INCLUDING ONE BY A JEANSMAKER THAT RAN ADS FOR ITS ROUGH SNUG DENIM WITH THE SLOGAN TOUGHER TO LIVE IN THAN PRATT'S BOTTOM WHEN THE VILLAGE HALL RECENTLY NEEDED REPAIRS LOCALS SHOWED THEY WERE NO PRATS BY DEVISING A CUTE FUNDRAISING SCHEME PRATT'S BOTTOMWEAR A LINE OF CLOTHING THAT DISPLAYS THE VILLAGE'S NAME AS PROUDLY AS ANY DESIGNER LABEL THE BOTTOM LINE SALES HAVE BROUGHT IN TWICE WHAT THE VILLAGE NEEDED FOR REPAIRS BACK IN LITTLE SNORING THOUGH FOLKS HAVE CHOSEN TO LIE LOW IT IS TRUE ONE GOTOBED CALLED HIS HOME DREAM COTTAGE BUT HE HAS SINCE MOVED AWAY OTHER FAMILY MEMBERS HAVE CHANGED THEIR NAME TO GOTTABED AND WHEN A BED COMPANY SLUMBERLAND ASKED ERIC GOTOBED TO APPEAR IN ADVERTISEMENTS HE DECIDED TO SLEEP ON IT LATER HE TURNED DOWN THE OFFER OUR NAME'S ENOUGH OF A NIGHTMARE ALREADY HE SAYS WITHOUT GOING OUT AND TELLING THE WHOLE WORLD ABOUT IT 9307210015 930721 COMMODITIES OIL PRICES DROP CARVING INTO PREVIOUS GAIN OPEC PRESIDENT'S REMARKS AGAIN DRIVE ACTION BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL OPEC'S JEAN PING NEARLY QUASHED THE OIL MARKET RALLY HE STARTED THE GABONESE OIL MINISTER WHO IS PRESIDENT OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SAID YESTERDAY THAT KINGPIN PRODUCER SAUDI ARABIA WON'T BE ASKED TO CUT ITS OUTPUT WHEN OPEC MEETS NEXT WEEK TO TRY TO PROP UP THE PRICE OF PETROLEUM WORLD OIL PRICES BEGAN SINKING AS SOON AS MR PING'S COMMENTS MADE IN AN INTERVIEW WITH THE DOW JONES INTERNATIONAL PETROLEUM REPORT BECAME KNOWN BY THE CLOSE OF TRADING THE FUTURES PRICE OF CRUDE OIL FOR SEPTEMBER DELIVERY HAD DROPPED 41 CENTS A BARREL ON THE NEW YORK MERCANTILE EXCHANGE TO SETTLE AT 1784 SOME TRADERS DESCRIBED IT AS A CORRECTION BUT THE PRICE FALL ERASED MUCH OF THE GAIN OF THE PREVIOUS DAY ON MONDAY THE SEPTEMBER CRUDE HAD SURGED 76 CENTS A BARREL AFTER MR PING ANNOUNCED THAT OPEC WOULD HOLD AN EMERGENCY MEETING IN VIENNA A WEEK FROM TODAY TO TRY TO TRIM THE SUPPLY GLUT OIL TRADERS GENERALLY INTERPRETED THAT TO MEAN OPEC INTENDED TO TAKE DECISIVE STEPS TO CURB OVERPRODUCTION AS WELL AS MAKE ROOM FOR SOME EXPORTS BY IRAQ WHICH IS NEGOTIATING WITH THE UNITED NATIONS FOR A TEMPORARY LIFTING OF THE BAN AGAINST ITS OIL SALES FEW EXPECTED OPEC TO ACCOMPLISH THIS WITHOUT THE HELP OF SAUDI ARABIA WHICH PRODUCES EIGHT MILLION BARRELS A DAY EVEN WITH IRAQI OIL OUT OF THE MARKET OPEC IS PRODUCING AS MUCH AS 900000 BARRELS A DAY ABOVE ITS THIRDQUARTER CEILING OF 236 MILLION BARRELS A DAY BUT MR PING MADE CLEAR YESTERDAY THAT THE OUTPUT CUTS OPEC SEEKS AREN'T EXPECTED TO COME FROM SAUDI ARABIA OR FROM OTHER MEMBERS PRODUCING WITHIN THEIR QUOTAS HE SAID THE CUTS WOULD HAVE TO COME FROM OVERPRODUCERS ALTHOUGH HE DIDN'T IDENTIFY THEM IRAN AND NIGERIA OFTEN ARE CITED WITHIN THE INDUSTRY AS CHEATERS ON OPEC QUOTAS KUWAIT ALSO IS PRODUCING ABOVE THE QUOTA OFFERED IT BY OPEC BUT IT ISN'T A PARTY TO THE THIRDQUARTER PRODUCTION PACT ADDITIONALLY MR PING SEEMED TO IMPLY YESTERDAY THAT OPEC MIGHT NOT ACT ON THE ISSUE OF IRAQI OIL UNTIL AFTER A DECISION COMES FROM THE UN THIS LED SOME OIL TRADERS TO SUGGEST THEY MIGHT HAVE BEEN EXPECTING TOO MUCH FROM NEXT WEEK'S OPEC MEETING HE MR PING BROUGHT THE MARKET BACK TO EARTH AND IT IS STILL BURDENED WITH OVERSUPPLY SAID ANDREW LEBOW A TRADER AND ENERGY ANALYST WITH ED&F MAN INTERNATIONAL FUTURES INC AFTER FUTURES TRADING HAD CLOSED THE LATEST INDUSTRY FIGURES ON US OIL INVENTORIES WERE RELEASED ACCORDING TO THE AMERICAN PETROLEUM INSTITUTE US INVENTORIES OF CRUDE OIL JUMPED 62 MILLION BARRELS LAST WEEK TO 360 MILLION OR 361 MILLION BARRELS ABOVE THE YEAREARLIER LEVEL ALSO THE API REPORTED THAT US CRUDE OIL IMPORTS REACHED 79 MILLION BARRELS A DAY LAST WEEK THE HIGHEST LEVEL IN MORE THAN A DECADE THIS IS ANOTHER SIGN OF THE AMPLE FOREIGN BARRELS OUT THERE SAID THOMAS BLAKESLEE A BRODY WHITE & CO ENERGY ANALYST IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS WHEAT FUTURES PRICES RALLIED AS THE FLOODING IN THE MIDWEST PREVENTED FARMERS IN BIG WHEATPRODUCING STATES FROM HARVESTING THEIR CROP IN KANSAS FOR INSTANCE 15 OF THE SPRING WHEAT CROP HAS YET TO BE HARVESTED A TOTAL OF 80 MILLION TO 85 MILLION BUSHELS SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO THE PERSISTENT RAIN HAS INFLICTED SIGNIFICANT DAMAGE ON THE CROP MR BASSE SAID AND MUCH OF IT IS LIKELY TO BE ABANDONED OR HARVESTED FOR FEED SOME LIVESTOCK FEEDLOT OPERATORS ALREADY HAVE BEGUN USING LOWGRADE WHEAT TO FEED THEIR ANIMALS AT THE CHICAGO BOARD OF TRADE WHEAT FOR DECEMBER DELIVERY WAS UP 325 CENTS TO 31775 A BUSHEL MEANWHILE SOYBEANS FOR NOVEMBER DELIVERY WERE DOWN 625 CENTS TO 72975 CENTS A BUSHEL ANALYSTS SAID THE MARKET WAS RETRACING A BIT AFTER SHARP WEATHERRELATED GAINS ON MONDAY COFFEE COFFEE FUTURES PRICES SETTLED LOWER AFTER A TURBULENT DAY OF TRADING THE MARKET RALLIED EARLY YESTERDAY ON NEWS THAT SEVERAL LATIN AMERICAN COUNTRIES HAVE SCHEDULED A MEETING TO DISCUSS THEIR PLANS TO RETAIN 20 OF THEIR EXPORTS AS THE ACTIVELY TRADED SEPTEMBER CONTRACT APPROACHED 75 CENTS A POUND HOWEVER THE MARKET BROKE WEIGHED DOWN BY HEAVY SELLING BY COFFEE PRODUCERS THE CONTRACT SETTLED AT 7230 CENTS A POUND DOWN 045 CENT THE MARKET DOESN'T APPEAR TO BE COMFORTABLE WHEN IT GETS ABOVE 74 CENTS WITH SUPPLY AS PLENTIFUL AS IT IS SAID BERNARD SAVAIKO COFFEE ANALYST FOR PAINEWEBBER INC SMALL SPECULATORS HAVE LOADED UP ON FUTURES CONTRACTS IN ANTICIPATION OF THE FREEZE SEASON IN BRAZIL IF A FREEZE OCCURS IT LIKELY WOULD EXERT UPWARD PRESSURE ON FUTURES PRICES YET SOME ANALYSTS WARN THAT COFFEE PRICES TRADITIONALLY FALL IN JULY IF A FREEZE DOESN'T MATERIALIZE THEY SAY PRICES MIGHT TUMBLE 9307210014 930721 FOREIGN EXCHANGE WITHOUT MAJOR NEWS WARY INVESTORS SIT TIGHT AS DOLLAR FALLS AGAINST MARK BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR DRIFTED LOWER YESTERDAY AS INVESTORS HEADED FOR THE SIDELINES IN A MARKET THAT LACKED MAJOR NEWS AND WAS SUBJECT TO QUICK VALUE FLUCTUATIONS LATE IN NEW YORK YESTERDAY THE DOLLAR WAS QUOTED AT 16690 MARKS DOWN FROM 17070 MARKS LATE MONDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 10815 YEN BELOW 10848 YEN STERLING WAS TRADING AT 15110 UP FROM 14985 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10828 YEN AND AT 17005 MARKS THIS WEEK'S THIN LINEUP OF US DATA RELEASES ALONG WITH UNCERTAINTY ABOUT THE NEW JAPANESE GOVERNMENT AND THE FUTURE OF THE EUROPEAN MONETARY SYSTEM OR EMS LEFT THE MARKET WARY OF ALL MAJOR CURRENCIES TRADERS SAID A LOT OF TRADERS DON'T WANT TO BE STUCK WITH A LONG POSITION FOR ANY LENGTH OF TIME SAID JACK GRIFFIN ASSISTANT VICE PRESIDENT AT FUJI BANK IN NEW YORK INSTEAD THE DOLLAR REPEATEDLY JUMPED AND THEN FELL BACK YESTERDAY EVENTUALLY IT ENDED LOWER ON MARKET DISAPPOINTMENT AT ITS FAILURE TO RALLY FURTHER AFTER COMMENTS BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN MR GREENSPAN'S COMMENTS MADE BEFORE CONGRESS AS PART OF THE FED'S SEMIANNUAL REPORT ON MONETARY POLICY GAVE THE DOLLAR ITS BIGGEST BOOST OF THE DAY THE FED CHAIRMAN REVIVED SOME INVESTORS' HOPES FOR AN INTERESTRATE INCREASE WHEN HE NOTED THAT US LONGTERM INTEREST RATES SET BY THE MARKET VIA PRICES OF TREASURY BONDS WERE HIGHER THAN SHORTTERM RATES WHICH ARE SET BY THE FED MARKET PARTICIPANTS ANTICIPATE THAT SHORTTERM REAL RATES WILL HAVE TO RISE MR GREENSPAN SAID IF SUBSTANTIAL INFLATIONARY IMBALANCES ARE TO BE AVOIDED TRADERS SAID THE CAUTIOUS REMARK WAS UNCHARACTERISTICALLY HAWKISH FOR MR GREENSPAN THEY CALLED HIS OTHER COMMENTS NO MORE THAN ROUTINE I THINK HE'S TRYING TO SEND A MESSAGE TO THE POLITICIANS THAT UNLESS YOU COME UP WITH A CREDIBLE DEFICITREDUCTION PROGRAM YOU CAN COUNT ON HIGHER SHORTTERM RATES SAID DAVID GILMORE A FOREIGN EXCHANGE ANALYST AT MCM CURRENCYWATCH HIGHER INTEREST RATES MAKE A CURRENCY MORE ATTRACTIVE BY INCREASING THE RETURN ON INVESTMENTS DENOMINATED IN THAT CURRENCY AFTER MR GREENSPAN'S COMMENTS THE DOLLAR RALLIED TO AN ALLDAY HIGH OF 17150 MARKS BEFORE FALLING BACK GERMAN INTEREST RATES WERE ALSO BEING WATCHED CLOSELY YESTERDAY AS THE BUNDESBANK ANNOUNCED A VARIABLERATE AUCTION FOR ITS 14DAY REPURCHASE AGREEMENTS REPO RATES ARE THE BUNDESBANK'S MAIN TOOL FOR INFLUENCING MONEYMARKET RATES THE MARKET WAS LEFT ON TENTERHOOKS WONDERING IF THE RESULTS TO BE ANNOUNCED TODAY WOULD MATCH THE 715 RATE ON TWODAY REPURCHASE AGREEMENTS ANNOUNCED MONDAY LAST WEEK THE BUNDESBANK OFFERED ITS 14DAY REPOS AT A 728 RATE IF THE BUNDESBANK FAILS TO MOVE THE 14DAY REPO RATE BELOW 720 TRADERS SAID THAT COULD SPARK NEW TENSION WITHIN THE EXCHANGE RATE MECHANISM OR ERM OF THE EMS GERMAN RELUCTANCE TO LOWER INTEREST RATES WHICH KEEP THE MARK STRONG AT THE EXPENSE OF OTHER EUROPEAN CURRENCIES ARE SEEN AS A FACTOR IN THE RECENT SPECULATIVE ATTEMPTS TO DEVALUE SOME CURRENCIES IN THE ERM THE ERM ITSELF WAS QUIET YESTERDAY THE DANISH KRONE A TARGET OF SPECULATIVE ATTACKS LAST WEEK HELD STEADY ON THE BACK OF HIGH INTEREST RATES IMPOSED RECENTLY TO STOP THE SPECULATION THE DANISH DISCOUNT RATE WAS MOVED UP TO 925 FROM 725 FRIDAY AND ON MONDAY AND TUESDAY THE COUNTRY'S CENTRAL BANK OFFERED EXTRAORDINARY LOANS AT 20 FOR BANKS SUFFERING A LACK OF LIQUIDITY AFTER SELLING OFF KRONER HOLDINGS FRIDAY PUNATIVELY HIGH INTEREST RATES MAKE SPECULATION MORE EXPENSIVE SINCE MANY SPECULATIONS BORROW A CURRENCY THEY SEE AS WEAK AND EXPECT TO PROFIT BY REPAYING THE LOAN WITH DEVALUED CURRENCY THE MARK CLOSED AT 38615 DANISH KRONER YESTERDAY FROM 38570 KRONER MONDAY THE DOLLAR STOOD AT 16996 MARKS LATE TUESDAY AFTERNOON IN NEW YORK THE RATE WAS MISSTATED AS 16690 MARKS IN YESTERDAY'S EDITION 9307210013 930721 TECHNOLOGY AMERITECH 2NDQUARTER NET ROSE 14 U S WEST'S FELL PACIFIC TELESIS WAS FLAT BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL FOUR MAJOR PHONE COMPANIES REPORTED MIXED RESULTS SPRINKLED WITH VARIOUS ONETIME ITEMS IN THE SECOND QUARTER AND THREE TOOK ADVANTAGE OF LOW INTEREST RATES TO REFINANCE DEBT AMERITECH CORP'S EARNINGS WERE SOMEWHAT HIGHER THAN CONSENSUS ANALYSTS' ESTIMATES WHILE PACIFIC TELESIS GROUP REPORTED FLAT EARNINGS REFLECTING CONTINUING SLUGGISHNESS IN CALIFORNIA'S ECONOMY U S WEST'S RESULTS EXCLUDED ITS FINANCIAL SERVICE BUSINESS WHICH THE COMPANY PLANS TO LEAVE AND BELL ATLANTIC REPORTED MUCH STRONGER OPERATING EARNINGS SEPARATELY CINCINNATI BELL INC ALSO REPORTED STRONGER NET INCOME THE CHICAGOBASED BABY BELL SAID ITS 14 PROFIT RISE REFLECTED HIGHER REVENUE AND COSTCUTTING MEASURES INCLUDING LOWER FINANCING COSTS REVENUE ROSE 52 TO 3 BILLION FUELED BY GROWTH IN NETWORK ACCESS LINES AND CELLULAR CUSTOMERS ACCESS LINES ROSE 3 TO 173 MILLION WHILE CELLULAR CUSTOMERS ROSE 39 TO 698000 AT THE END OF THE QUARTER SECONDQUARTER RESULTS DIDN'T INCLUDE A ONETIME AFTERTAX GAIN OF ABOUT 62 MILLION FROM THE SALE OF 109 MILLION SHARES OF NEW ZEALANDBASED TELECOM CORP IN WHICH AMERITECH HAS A STAKE THE GAIN WILL BE REALIZED IN THE THIRD QUARTER AS A RESULT OF THE SALE AMERITECH'S STAKE IN TELECOM WILL FALL TO 2495 THE COMPANY ATTRIBUTED A 22 JUMP IN PROFIT TO HIGHER TELEPHONE AND CELLULAR REVENUES AND TIGHTER COST CONTROL MEASURES BUT IT HAD SEVERAL ONETIME ITEMS INCLUDING A CHARGE FOR EARLY PAYMENT OF DEBT AND THE SALE OF CERTAIN NONSTRATEGIC BUSINESSES THE YEAREARLIER QUARTER INCLUDED A CHARGE FOR COSTS RELATED TO BELL ATLANTIC'S MERGER WITH METRO MOBILE CTS INC AND DEBT REFINANCING REVENUE ROSE 17 TO 322 BILLION WITH THE COMMUNICATIONS AND RELATED SERVICES SEGMENT INCREASING BY 25 REVENUE IN FINANCIAL AND REAL ESTATE SERVICES HOWEVER FELL 17 DUE TO CONTINUED DOWNSIZING MAINLY IN COMPUTER LEASING BELL ATLANTIC SAID THE PHILADELPHIABASED COMPANY SAID ITS WIRELESS OPERATIONS ADDED 243900 SUBSCRIBERS BRINGING THE TOTAL NUMBER OF SUBSCRIBERS TO 821100 AN INCREASE OF 42 ACCESS LINES ROSE 24 TO 184 MILLION NET FROM CONTINUING OPERATIONS WHICH EXCLUDE RESULTS OF THE FINANCIAL SERVICE BUSINESS ROSE 59 TO 2912 MILLION FROM 275 MILLION HOWEVER THE ENGLEWOOD COLO COMPANY TOOK A ONETIME CHARGE OF 100 MILLION OR 24 CENTS A SHARE FOR COSTS RELATED TO ITS EXITING FROM THE FINANCIAL SERVICE BUSINESS AND A CHARGE OF 502 MILLION OR 12 CENTS A SHARE FOR DEBT REFINANCING AT ITS U S WEST COMMUNICATIONS BUSINESS SALES ROSE 39 TO 254 BILLION TELEPHONE ACCESS LINES GREW 35 LED BY A STRONG SHOWING IN THE BUSINESS MARKET WHICH GREW 49 THE NUMBER OF CUSTOMERS SERVED BY U S WEST CELLULAR ROSE 33 TO 475000 THE SAN FRANCISCOBASED COMPANY SAID GROWING PROFIT IN ITS DOMESTIC CELLULAR BUSINESS HIGHER DEMAND FOR VOICE MAIL PRODUCTS AND NEW CUSTOM CALLING FEATURES PARTLY HELPED TO OFFSET THE ADVERSE EFFECTS OF A WEAK CALIFORNIA ECONOMY AND COMPETITION WE'RE STANDING TOETOTOE WITH A CALIFORNIA RECESSION THAT REFUSES TO BUDGE SAID SAM GINN CHAIRMAN AND CHIEF EXECUTIVE OPERATING EARNINGS WHICH EXCLUDE THE COSTS OF ADOPTING A NEW ACCOUNTING RULE FOR RETIREE BENEFITS A HIGHER EFFECTIVE TAX RATE AND DEPRECIATION WERE MOSTLY FLAT FROM A YEARAGO THE COMPANY'S BIGGEST UNIT PACIFIC BELL WHICH PROVIDES TELECOMMUNICATIONS SERVICES TO MOST OF CALIFORNIA REPORTED A 74 DROP IN NET TO 263 MILLION FROM 284 MILLION REVENUE FOR THE QUARTER ROSE 34 TO 25 BILLION PACTEL CELLULAR SAID THE NUMBER OF SUBSCRIBERS JUMPED 35 TO 832000 REVENUE FELL SLIGHTLY TO 2728 MILLION FROM 2754 MILLION THE SECOND QUARTER INCLUDED CERTAIN ONETIME ITEMS WHOSE NET EFFECT WAS NOT MATERIAL THE CINCINNATIBASED COMPANY SAID THE COMPANY'S CINCINNATI BELL TELEPHONE UNIT REPORTED A 3 RISE IN OPERATING PROFIT TO 261 MILLION NETWORK ACCESS LINES ROSE 2 TO 838030 9307210012 930721 LEISURE & ARTS BOOKSHELF AN ECCENTRIC OF THE EARLY REPUBLIC BY ALAN PELL CRAWFORD RECALLING LATE IN LIFE HIS FEROCIOUS DISPUTES WITH ALEXANDER HAMILTON JOHN ADAMS REMEMBERED THINKING THAT EITHER THIS MAN IS STARK MAD OR I AM THEIR CONTEMPORARIES CONCLUDED THAT THE CRAZY ONE WAS ADAMS HIS OWN FEDERALIST FACTION WHAT WE WOULD CALL PARTY THOUGHT HIM EMOTIONALLY UNFIT FOR THE DEMANDS OF THE PRESIDENCY AND TURNED HIM OUT OF OFFICE AFTER FOUR YEARS THE FACTION MAY WELL HAVE BEEN WISE TO DO SO AS JOSEPH J ELLIS SUGGESTS IN THIS ABSORBING AMUSING AND ON THE WHOLE ADMIRING STUDY OF ADAMS IN HIS LATER YEARS PASSIONATE SAGE THE CHARACTER AND LEGACY OF JOHN ADAMS NORTON 352 PAGES 25 ADAMS 17351826 WAS IRASCIBLE AND VAIN HE WAS CONSUMED BY PERSONAL RESENTMENTS THAT COULD EXPLODE AT ANY MOMENT WOUNDING OTHERS AND POISONING HIS OWN BETTER JUDGMENT BUT HE WAS ALSO AN AFFECTIONATE AND IMPULSIVELY GENEROUS FRIEND AND FAMILY MAN A PROFOUND IF UNSYSTEMATIC POLITICAL PHILOSOPHER AND AN INCORRUPTIBLE PUBLIC SERVANT HE WAS TO COMPLICATE MATTERS AS PAINFULLY AWARE OF HIS FLAWS OF CHARACTER AS WERE ANY OF HIS CRITICS THE TIMES MADAM HAVE MADE A STRANGE BEING OF ME HE CONFESSED TO ONE OF THOSE DETRACTORS THE PROTOFEMINIST HISTORIAN MERCY OTIS WARREN HE WAS HE READILY CONCEDED AN IRRITABLE FIERY MORTAL AS PROFUSE AS A PRODIGAL AND AS PROUD AS A CAESAR BUT AN HONEST MAN IN ALL AND TO THE DEATH THESE TRAITS NEEDLESS TO SAY WERE NOT THEN AND ARE NOT NOW THOSE OF A POPULAR POLITICIAN FOR ALL HIS CONTRIBUTIONS TO THE REVOLUTION ADAMS WAS AS MIGHT HAVE BEEN PREDICTED A FLOP AS PRESIDENT ELECTED IN 1796 HE INHERITED PROBLEMS FROM GEORGE WASHINGTON AND CREATED A FEW OF HIS OWN PLEASING NEITHER HAMILTON'S HIGH FEDERALISTS NOR THE JEFFERSONIANS HIS EMINENTLY SANE APPROACH TO THE OVERRIDING ISSUE OF THE DAY THE WAR BETWEEN FRANCE AND ENGLAND IN WHICH HE COUNSELED NEUTRALITY MANAGED ONLY TO ALIENATE HIM FROM THE FEDERALIST LEADERSHIP WITHOUT ENDEARING HIM TO THE RIVAL DEMOCRATICREPUBLICANS OR TO THE PEOPLE JEFFERSON'S ELECTION IN 1800 WAS HAILED AS A VICTORY OF DEMOCRACY WHICH IN MANY WAYS IT WAS WHILE ADAMS WAS NOT AS HIS ENEMIES ALLEGED A MONARCHIST HE HARBORED NO ILLUSIONS ABOUT THE WISDOM OF THE PEOPLE THE CHALLENGE OF SELFGOVERNMENT HE BELIEVED WAS TO CONTROL THE DESTRUCTIVE IMPULSES OF THE CITIZENS NOTAS JEFFERSON WOULD HAVE IT TO FREE THEM FROM EXTERNAL CONSTRAINTS THIS SKEPTICISM ABOUT THE INHERENT GOODNESS OF PEOPLE SO AT ODDS WITH THE DEMOCRATIC FAITH THEN DOMINANT LED ADAMS TO TROUBLING AND UNPOPULAR UTTERANCES ABOUT THIS COUNTRY'S FUTURE IT IS HIGH TREASON HE DISCOVERED FROM BITTER EXPERIENCE TO EXPRESS A DOUBT OF THE PERPETUAL DURATION OF OUR VAST AMERICAN EMPIRE HIS PROBLEM WAS AMERICAN CONSERVATISM'S PROBLEM HOW TO TRANSLATE WHAT IS AN ESSENTIALLY PESSIMISTIC WORLD VIEW A TRAGIC VISION EVEN INTO A POPULAR POLITICAL PROGRAM ADAMS NEVER PENETRATED THIS MYSTERY AND LATER CONSERVATIVES HAVEN'T FARED MUCH BETTER MR ELLIS'S STUDY OF ADAMS SUGGESTS WITHOUT EVER SAYING SO THAT THE PROBLEM MAY BE INSOLUBLE ADAMS WAS IN ALL LIKELIHOOD TOO IDIOSYNCRATIC AND ICONOCLASTIC EVER TO BECOME A NATIONAL ICON TOO DAMNABLY SPECIFIC AND DISARMINGLY HONEST EVER TO WIN AN ELECTION EVEN WITH POSTERITY MR ELLIS WRITES PERHAPS WE SHOULD ACKNOWLEDGE THAT HE BELONGS TO THAT BREED OF AMERICAN SKEPTICS MARK TWAIN HL MENCKEN AND THORSTEIN VEBLEN COME TO MIND WHO PATROL THE MARGINS OF OUR POLITICAL CULTURE AND WHOSE WISDOM DERIVES FROM THEIR ALIENATION WHILE HE HAS COME TO BE REGARDED BY HISTORIANS AS THE MOST ENGAGINGLY HUMAN MEMBER OF AMERICA'S FOUNDING GENERATION PERHAPS HE WAS ALWAYS MISCAST AS A PUBLIC FIGURE ENTRUSTED WITH THE EXERCISE OF POLITICAL POWER THAT AFTER ALL WAS THE ULTIMATE VERDICT OF HAMILTON AND THE HIGH FEDERALISTS AND IT IS ALSO AN EXPLANATION THAT MAKES MORE COMPREHENSIBLE THE RELATIVE SERENITY AND PERSONAL BALANCE HE WAS ABLE TO ACHIEVE ONLY IN HIS RETIREMENT YEARS JUST AS ADAMS HAD FEW ILLUSIONS ABOUT HIS COUNTRYMEN HE ALSO HAD FEW ABOUT HIMSELF HE KNEW ALL TOO WELL THAT HE WAS NOT A BELOVED FIGURE AND THOUGH HE TRIED TO DENY IT THAT KNOWLEDGE TROUBLED HIM MAUSOLEUMS STATUES MONUMENTS WILL NEVER BE ERECTED TO ME HE ADMITTED IN A LETTER TO A FELLOW SIGNER OF THE DECLARATION OF INDEPENDENCE THE PHYSICIAN BENJAMIN RUSH IN 1809 I WISH THEM NOT PANEGYRICAL ROMANCES WILL NEVER BE WRITTEN NOR FLATTERING ORATIONS SPOKEN TO TRANSMIT ME TO POSTERITY IN BRILLIANT COLORS NO NOR IN TRUE COLORS ALL BUT THE LAST I LOATHE DETESTING CANT AND REVERING HONESTY EVEN ABOUT HIMSELF ADAMS MIGHT WELL HAVE LIKED THIS CANDID AND GENEROUS BOOK HE WOULD SURELY HAVE HAD THE GOOD SENSE TO PRIZE IT MORE HIGHLY THAN A STATUE MR CRAWFORD IS AUTHOR OF THUNDER ON THE RIGHT THE NEW RIGHT AND THE POLITICS OF RESENTMENT 9307210011 930721 MARKETING BRIEF PLAYBOY ENTERPRISES INC BOOK PUBLISHER SUES HEFNER BREACH OF CONTRACT ALLEGED BANTAM DOUBLEDAY DELL PUBLISHING GROUP INC HAS SUED PLAYBOY ENTERPRISES INC AND ITS FOUNDER HUGH M HEFNER FOR FAILING TO PRODUCE A HEFNER AUTOBIOGRAPHY BANTAM IN A COMPLAINT FILED IN STATE COURT IN LOS ANGELES SAID IT SIGNED A CONTRACT WITH PLAYBOY IN OCTOBER 1985 FOR A BOOK OF BETWEEN 125000 AND 200000 WORDS TO BE DELIVERED BY APRIL 30 1987 THE DEADLINE WAS LATER EXTENDED TO OCT 1 1992 AND THE LENGTH REQUIREMENT CHANGED TO 850 BOOKPRINTED PAGES MR HEFNER AND PLAYBOY HOWEVER MISSED THE LATER DEADLINE AND HAVE REFUSED TO RETURN 400000 IN ADVANCES ACCORDING TO BANTAM WHICH SEEKS A RETURN OF ITS MONEY WITH INTEREST LATE YESTERDAY A PLAYBOY SPOKESMAN COULDN'T BE REACHED FOR COMMENT 9307210010 930721 WEAN INC IS SEEKING CHAPTER 11 STATUS AGREES TO ASSET SALE PITTSBURGH WEAN INC A 64YEAROLD METAL PROCESSOR FILED FOR CHAPTER 11 BANKRUPTCY LAW PROTECTION AND AGREED TO SELL MOST OF ITS BUSINESS TO ITALY'S DANIELI & C SPA FOR 105 MILLION TO 13 MILLION UNDER CHAPTER 11 A COMPANY CONTINUES TO OPERATE UNDER PROTECTION FROM CREDITORS' LAWSUITS WHILE IT WORKS OUT A PLAN TO REPAY ITS DEBTS WEAN HAD DEFAULTED ON 18 MILLION IN PRINCIPAL AND INTEREST PAYMENTS MARCH 1 AND HAD BEEN TALKING WITH BONDHOLDERS ABOUT RESTRUCTURING ITS DEBT BUT THE COMPANY DETERMINED THIS WOULD CREATE THE MOST VALUE FOR ALL CONSTITUENCIES SAID R J WEAN III WEAN'S CHIEF EXECUTIVE OFFICER AND GRANDSON OF THE FOUNDER THE FILING IN US BANKRUPTCY COURT IN PITTSBURGH WAS ALSO THE MOST EXPEDITIOUS MANNER TO COMPLETE THE SALE TO DANIELI MR WEAN SAID INSTEAD OF A LENGTHY SHAREHOLDER SOLICITATION WEAN ONLY NEEDS COURT APPROVAL FOR THE SALE WHICH IT EXPECTS TO COMPLETE IN 60 TO 90 DAYS WEAN WHICH HAD SALES OF 250 MILLION DURING ITS PEAK IN THE EARLY 1980S HAD BEEN HURT BY OVERCAPACITY IN THE STEEL INDUSTRY AND DECLINING ORDERS FOR ITS EQUIPMENT WEAN MAKES MACHINES THAT TREAT AND COAT SHEET STEEL WHICH REMAINS AN OVERBUILT SEGMENT OF THE INDUSTRY ALTHOUGH MR WEAN SAID HE HAS SEEN A RECENT UPTICK WEAN HASN'T WRITTEN A REORGANIZATION PLAN AND MR WEAN COULDN'T SAY WHAT WOULD HAPPEN TO THE COMPANY AFTER THE SALE DANIELI WILL BUY WEAN'S ENGINEERING AND MANUFACTURING ASSETS IN YOUNGSTOWN OHIO WHICH PROVIDE THE BULK OF THE COMPANY'S REVENUE WEAN'S ONLY OTHER OPERATION A FACILITY IN ONTARIO CANADA ISN'T PART OF THE SALE OR THE FILING WEAN SHARES WERE QUOTED LATE YESTERDAY AT 175 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9307210009 930721 ECONOMY GREENSPAN SAYS RISK OF INFLATION ISN'T OVER YET FED CHAIRMAN SIGNALS RATES COULD RISE IF ECONOMY CONTINUES TO IMPROVE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAYING THAT THE NEWS OF INFLATION THIS YEAR MUST BE CHARACTERIZED AS DISAPPOINTING LAID THE FOUNDATION YESTERDAY FOR A MOVE TO RAISE INTEREST RATES IF THE ECONOMY CONTINUES TO STRENGTHEN EVEN THOUGH THE INFLATION READINGS FOR THE PAST TWO MONTHS HAVE BEEN FAVORABLE MR GREENSPAN YESTERDAY DELIVERED A STERN WARNING TO THE HOUSE BANKING COMMITTEE ABOUT THE RISKS OF INFLATION AND THE IMPERATIVE OF SQUASHING EVEN UNJUSTIFIED EXPECTATIONS THAT IT MAY ACCELERATE THE FED CHAIRMAN ALSO NOTED THAT ADJUSTED FOR INFLATION THE SHORTTERM INTEREST RATES THAT THE FED CONTROLS ARE CLOSE TO ZERO AND INDICATED THAT THEY CAN'T REMAIN THAT LOW INDEFINITELY THE FED HAS HELD INTEREST RATES STEADY FOR THE PAST 10 MONTHS FINANCIAL MARKETS HE POINTED OUT ANTICIPATE THAT SHORTTERM REAL RATES WILL HAVE TO RISE AS THE HEAD WINDS DIMINISH IF SUBSTANTIAL INFLATIONARY BALANCES ARE TO BE AVOIDED THE MARKETS RESPONDED TO HIS COMMENTS BY PUSHING UP BOTH SHORT AND LONGTERM INTEREST RATES THE YIELD ON THREEMONTH TREASURY BILLS ROSE TO 312 YESTERDAY FROM 310 MONDAY WHILE THE YIELD ON 30YEAR BONDS ROSE TO 655 FROM 654 STOCKS ALSO FELL INITIALLY ON GREENSPAN'S REMARKS ALTHOUGH THEY LATER RECOVERED WITH UNEMPLOYMENT STILL HIGH FACTORIES OPERATING FAR FROM FULL CAPACITY AND INTERNATIONAL COMPETITION STIFF MR GREENSPAN MADE CLEAR THAT THE FED DOESN'T SEE ANY REASON FOR INFLATION TO GET WORSE BUT HE SAID THAT THE FED SHOULD RESPOND TO FEARS OF INFLATION EVEN IF UNJUSTIFIED EVEN EXPECTATIONS NOT VALIDATED BY ECONOMIC FUNDAMENTALS CAN THEMSELVES ADD APPRECIABLY TO WAGE AND PRICE PRESSURES FOR A CONSIDERABLE PERIOD HE SAID MR GREENSPAN OFFERED HIS FULLEST EXPLANATION SO FAR OF THE FED'S PREVIOUSLY REPORTED DECISION MADE IN MAY TO ALTER ITS STANCE AND TILT TOWARD HIGHER INTEREST RATES THE MOVE DOESN'T IMPLY THAT HIGHER RATES ARE IMMINENT HE SAID IT MEANS THAT FURTHER SIGNS OF A POTENTIAL DETERIORATION OF THE INFLATION OUTLOOK WOULD MERIT SERIOUS CONSIDERATION OF WHETHER SHORTTERM RATES NEEDED TO BE RAISED SLIGHTLY FROM THEIR RELATIVELY LOW LEVELS THE FED CHAIRMAN ALSO SAID THAT THE FED HASN'T FOUND ANY INDICATOR TO REPLACE THE MONEY SUPPLY WHICH HE SAID HAS BEEN DOWNGRADED AS A RELIABLE INDICATOR BUT OFFERED THE INFLATIONADJUSTED LEVEL OF INTEREST RATES AS ONE IMPORTANT GUIDEPOST IN HIS CHARACTERISTICALLY OPAQUE PROSE MR GREENSPAN SAID THAT THE FED AIMS TO KEEP INTEREST RATES AT A LEVEL THAT IF MAINTAINED WOULD KEEP THE ECONOMY AT ITS PRODUCTION POTENTIAL OVER TIME THE ECONOMY THOUGH EXPANDING FITFULLY IS PICKING UP MOMENTUM MR GREENSPAN SAID YESTERDAY THE ECONOMY GREW AT AN ANNUAL RATE OF ONLY 07 IN THE FIRST QUARTER BECAUSE OF BAD WEATHER AND A SURPRISING DROP IN DEFENSE SPENDING MR GREENSPAN SAID BUT SECONDQUARTER GROWTH PROBABLY EXCEEDED 25 THE COMMERCE DEPARTMENT WILL RELEASE ITS ESTIMATE OF SECONDQUARTER GROWTH TOMORROW LIKE PRIVATE FORECASTERS THE FED HAS HOWEVER LOWERED ITS PREDICTIONS FOR ECONOMIC GROWTH THIS YEAR MOST FED OFFICIALS NOW EXPECT THE ECONOMY TO EXPAND BETWEEN 225 AND 275 THIS YEAR THE FED DISCLOSED IN ITS SEMIANNUAL REPORT TO CONGRESS IN FEBRUARY THEY EXPECTED GROWTH OF BETWEEN 3 AND 325 HOPES THAT THE INFLATION RATE WOULD COME DOWN THIS YEAR HAVE BEEN DASHED DESPITE DISINFLATIONARY FORCES AND CONTINUED SLACK THE RATE OF INFLATION HAS AT BEST STABILIZED HE SAID FED OFFICIALS EXPECT CONSUMER PRICES TO INCREASE BETWEEN 3 AND 325 THIS YEAR AND BETWEEN 3 AND 350 NEXT YEAR IN FEBRUARY THEY PREDICTED PRICES WOULD CLIMB BETWEEN 250 AND 275 CONSUMER PRICES ROSE 31 LAST YEAR MR GREENSPAN SAID THAT FED POLICY MAKERS AT THEIR JULY MEETING VOTED TO REDUCE THE TARGET RANGE FOR GROWTH THIS YEAR IN THE M2 MEASURE OF THE MONEY SUPPLY BUT HE SAID THE CHANGE WAS PURELY A TECHNICAL MATTER THAT DOESN'T SUGGEST ANY SHIFT TOWARD TIGHTER MONETARY POLICY THE FED NOW AIMS TO INCREASE M2 BETWEEN 1 AND 5 THIS YEAR AND NEXT IN FEBRUARY IT DECIDED TO AIM AT INCREASING IT BETWEEN 2 AND 6 THROUGH THE END OF JUNE M2 HAS GROWN AT AN ANNUAL RATE OF ONLY 08 THE FED SAID BUT IN ITS SEMIANNUAL REPORT THE FED SAID THAT MONEYSUPPLY GROWTH WILL LIKELY BE OF LIMITED USE IN GUIDING POLICY OVER THE NEXT 18 MONTHS THE M2 MEASURE INCLUDES CURRENCY CHECKING ACCOUNTS SMALL SAVINGS ACCOUNTS AND SOME MONEYMARKET MUTUAL FUNDS MR GREENSPAN IN RESPONSE TO A QUESTION ALSO SAID THAT THE FED HAS PUT INTO PLACE SUFFICIENT CONTROLS AT THIS STAGE TO ELIMINATE LEAKS OF THE OUTCOME OF ITS MONETARY POLICY DECISIONS I WOULD HOPE THAT AS THE MONTHS GO BY IT'LL BECOME INCREASINGLY CLEAR THAT WE'VE SUCCEEDED IN THAT ENDEAVOR HE SAID NOTING THAT THE WALL STREET JOURNAL HAS REPORTED FED DECISIONS BEFORE THE FED DISCLOSED THEM REP PAUL KANJORSKI D PA CHAIRMAN OF THE HOUSE SUBCOMMITTEE THAT OVERSEES THE FED WARNED THAT CONGRESS MIGHT FORCE IMMEDIATE DISCLOSURE OF FED DECISIONS IF THE LEAKS PERSIST THE FED CURRENTLY RELEASES A SUMMARY OF ITS MONETARY POLICY DISCUSSIONS WITH A SIXWEEK LAG FORECASTS BY THE FEDERAL RESERVE OFFICIALS CENTER ON THESE RANGES NOTE FORECASTS ARE FOURTH QUARTER TO FOURTH QUARTER JOBLESS RATE IS FOURTHQUARTER AVERAGE 9307210008 930721 WHO'S NEWS COASTAL CHAIRMAN WYATT TO TAKE BACK POST OF CHIEF EXECUTIVE AS STOCK STALLS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON OSCAR S WYATT THE 69YEAROLD CHAIRMAN AND FOUNDER OF COASTAL CORP SAID HE WOULD TAKE BACK THE JOB OF CHIEF EXECUTIVE THAT HE RELINQUISHED IN 1989 MR WYATT FACES THE CHALLENGE OF REVIVING WHAT WAS ONE OF THE HIGHESTFLYING NATURAL GAS PIPELINE COMPANIES IN THE COUNTRY IN THE 1980S BUT SADDLED WITH A LARGE OIL REFINING BUSINESS THAT RACKED UP OPERATING LOSSES TOTALING 2914 MILLION IN 1991 AND 1992 THE COMPANY'S STOCK PRICE HAS STUCK IN A NARROW RANGE THIS YEAR WHILE OTHER GAS COMPANY STOCKS HAVE SOARED COASTAL IS A GOOD PIPELINE AND A LOUSY REFINER SAID CURT LAUNER A GAS INDUSTRY ANALYST AT DONALDSON LUFKIN & JENRETTE IN NEW YORK INCLUDING MR WYATT COASTAL EMPLOYEES OWN ROUGHLY 20 OF THE COMPANY'S STOCK AND THEY CARE A LOT THAT THE STOCK IS LANGUISHING IN AN INDUSTRY GROUP THAT HAS HAD ITS BEST RUN IN A DECADE MR LAUNER SAID COASTAL SHARES CLOSED AT 26125 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE SHARES HAVE TRADED MOSTLY IN A 24 TO 26 RANGE THIS YEAR WHILE THE PIPELINE INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX HAS JUMPED MORE THAN 31 MR WYATT LOVES DEALMAKING AND IS AS COMFORTABLE HUNTING ON HIS TEXAS RANCH AS HE IS FLYING TO EUROPE AND THE MIDDLE EAST ON THE COMPANY JET TO ARRANGE OIL PURCHASES HE HAS COME UNDER CRITICISM FOR A COASTAL SUBSIDIARY'S OWNERSHIP WITH LIBYA OF A HAMBURG GERMANY REFINERY AS WELL AS FOR AVOIDING JUMPING ON THE ANTIIRAQ BANDWAGON AFTER THAT COUNTRY INVADED KUWAIT IN 1990 A FORMER DRILLBIT SALESMAN WHO USED TO PACK A GUN MR WYATT LED COASTAL THROUGH SEVERAL HOSTILE TAKEOVER ATTEMPTS IN THE 1980S HE REGULARLY ATTENDS MEETINGS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WITH HIS CHIEF OIL TRADER SAM WILLSON WHERE HE DINES WITH OFFICIALS FEW PEOPLE ARE WILLING TO CROSS THE TOUGHTALKING MR WYATT WHO IS EXTREMELY LITIGIOUS AND SUED HIS OWN BROTHERINLAW A FEW YEARS BACK MR WYATT TAKES THE REINS BACK FROM JAMES R PAUL THE COMPANY SAID THE 58YEAROLD MR PAUL WHO BECAME PRESIDENT IN 1984 AND CHIEF EXECUTIVE IN 1989 RESIGNED TO PURSUE OTHER INTERESTS A COASTAL SPOKESMAN SAID THAT TALK WITHIN COASTAL OF FRICTION BETWEEN MESSRS PAUL AND WYATT WAS UNFOUNDED AND THAT THE COMPANY STRATEGY IMPLEMENTED UNDER MR PAUL WOULD CONTINUE COASTAL HAS BEGUN TO RESTRUCTURE ITS REFINING OPERATIONS INCLUDING CLOSING SEVERAL PLANTS AND UPGRADING THE SYSTEM'S ABILITY TO PRODUCE HIGHERMARGIN PETROLEUM PRODUCTS THE COMPANY BELIEVES IT IS ON TRACK AND NOTES THAT IN THE FIRST QUARTER THE REFINING BUSINESS HAD AN OPERATING PROFIT OF 17 MILLION COMPARED WITH A 505 MILLION LOSS A YEAR EARLIER SOME COASTAL EXECUTIVES HAVE SAID THEY BELIEVE MR PAUL WANTED TO MAKE COASTAL MORE OF A PURE NATURALGAS COMPANY BUT MR WYATT REMAINED ENAMORED OF THE REFINERIES THE COASTAL SPOKESMAN SAID IN ANY COMPANY THERE'S GOING TO BE A DIFFERENCE OF OPINION BETWEEN A CHAIRMAN AND HIS EXECUTIVE OFFICERS BUT MR WYATT AND MR PAUL DIDN'T HAVE ANY FUNDAMENTAL DISAGREEMENTS JIM PAUL MADE THIS DECISION ON HIS OWN THE SPOKESMAN SAID MESSRS WYATT AND PAUL DECLINED TO COMMENT THE COMPANY SAID EARNINGS IN THE SECOND QUARTER LIKELY MET EXPECTATIONS OF 20 CENTS TO 25 CENTS A SHARE IN THE 1992 SECOND PERIOD COASTAL HAD NET INCOME OF 356 MILLION OR 34 CENTS A SHARE ON REVENUE OF 24 BILLION COASTAL SAID DAVID A ARLEDGE CHIEF FINANCIAL OFFICER WILL ALSO ASSUME THE DUTIES OF CHIEF OPERATING OFFICER MR ARLEDGE 48 IS RESPECTED ON WALL STREET AND APPEARS TO BE NEXT IN LINE FOR THE POST OF PRESIDENT 9307210007 930721 BUSINESS BRIEF UNITED TECHNOLOGIES REPORTS 12 DECLINE IN 2NDQUARTER NET UNITED TECHNOLOGIES CORP HURT BY THE CONTINUING SLUGGISHNESS IN THE AIRLINE INDUSTRY SAID ITS SECONDQUARTER PROFIT FELL 12 TO 130 MILLION OR 89 CENTS A SHARE THE COMPANY WHICH IN RECENT QUARTERS REPORTED SHARPLY LOWER EARNINGS OTHERWISE POSTED IMPROVED OPERATING PROFITS IN MOST OTHER BUSINESSES THE RESULTS WERE IN LINE WITH WALL STREET ANALYSTS' ESTIMATES IN LAST YEAR'S SECOND QUARTER THE HARTFORD CONN COMPANY EARNED 148 MILLION OR 103 A SHARE REVENUE IN THE LATEST PERIOD SLIPPED TO 56 BILLION FROM 57 BILLION LAST YEAR THE COMPANY'S STOCK PRICE SKIDDED IN RECENT DAYS BECAUSE ANALYSTS WERE WORRIED ABOUT COMMERCIAL ENGINE SPAREPARTS ORDERS BUT THE STOCK RECOVERED 125 YESTERDAY TO 5325 EVEN THOUGH THE COMPANY REPORTED ITS RESULTS TOWARD THE END OF COMPOSITE NEW YORK STOCK EXCHANGE TRADING PRATT & WHITNEY THE COMPANY'S JETENGINE UNIT REPORTED OPERATING PROFIT OF 6 MILLION COMPARED WITH 122 MILLION A YEAR EARLIER THE PLUNGE RESULTED FROM LOWER ENGINE SHIPMENTS AND COMMERCIAL ENGINE SPAREPARTS SALES UNITED TECHNOLOGIES CHAIRMAN ROBERT F DANIELL SAID THAT ALTHOUGH PRATT & WHITNEY CONTINUES TO SUFFER FROM THE CRISIS IN THE AIRLINE INDUSTRY IT IS SHOWING SIGNS OF IMPROVEMENT IN THE LATEST QUARTER SPAREPARTS ORDERS AVERAGED 125 MILLION A MONTH UP FROM 115 MILLION A MONTH IN THE FIRST QUARTER HE SAID HE EXPECTS 1993 SPAREPARTS ORDERS TO TOTAL 13 BILLION ABOUT THE SAME AS LAST YEAR FIRSTHALF NET INCOME FOR UNITED TECHNOLOGIES FELL NEARLY 20 TO 194 MILLION OR 131 A SHARE FROM 242 MILLION OR 179 A SHARE A YEAR EARLIER REVENUE DROPPED TO 104 BILLION FROM 109 BILLION 9307210006 930721 LAW LEGAL BEAT GM SWITCHED STRATEGY TO GET PICKUP ACCORD BY DOUGLAS LAVIN AND MILO GEYELIN STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL MOTORS CORP WAS PREPARED TO FIGHT A HUNDRED LEGAL BATTLES IN DEFENSE OF ITS PICKUP TRUCKS WITH THE SIDEMOUNTED FUEL TANKS BUT LAST MONTH AS IT BECAME CLEAR THAT ALL 36 CLASSACTION SUITS OUTSTANDING COULD BE SETTLED FOR COUPONS NOT REPAIRS OR CASH GM DECIDED TO SWITCH RATHER THAN FIGHT NOW IT APPEARS THAT BY AVOIDING BATTLE GM HAS WON THE WAR FINANCIALLY AT LEAST GM STOCK WAS TRADING AT 48875 YESTERDAY UP 1125 OR 24 TO A 52WEEK HIGH ON THE NEW YORK STOCK EXCHANGE IN PART BECAUSE INVESTORS THINK THE SETTLEMENT COULD HAVE A POSI TIVE EFFECT ON GM'S REVENUE AND PROFIT WHAT'S MORE THE SETTLEMENT WHICH RECEIVED PRELIMINARY JUDICIAL APPROVAL REMOVES A HUGE THREAT THAT HAD BEEN HANGING OVER THE AUTO MAKER SENIOR GM EXECUTIVES HAD WORRIED THAT LOSING THE SUITS COULD COST THE ALREADYSTRAPPED AUTO MAKER A RUINOUS 5 BILLION IN CASH TO BE SURE THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION STILL IS PRESSING GM TO RECALL THE 19731987 MODEL TRUCKS ALLEGING THAT THEY ARE UNSAFE AND PRONE TO EXPLODE IN SIDE COLLISIONS THE AUTO MAKER ALSO FACES NUMEROUS PRODUCTLIABILITY SUITS FILED BY PEOPLE INJURED OR THE SURVIVORS OF THOSE KILLED IN ACCIDENTS INVOLVING THE PICKUPS FOR ITS PART GM MAINTAINS THAT THE TRUCKS ARE SAFE AND THAT ITS SETTLEMENT OFFER HAS NOTHING TO DO WITH THE RECALL ISSUE THE DEAL WAS REACHED AFTER HUNDREDS OF TELEPHONE CALLS AND WEEKLY MEETINGS IN LAW OFFICES AND AIRPORT HOTELS GM HAD TO NEGOTIATE WITH THREE SEPARATE GROUPS OF ATTORNEYS BUT IT PLAYED THAT CARD TO ITS ADVANTAGE USING ONE GROUP OF PLAINTIFFS TO CONVINCE ANOTHER THAT A DEMAND TO REPAIR THE TRUCKS SIMPLY WOULDN'T WORK THE PLAINTIFFS IN TURN HAD MOMENTUM LOTS OF IT DURING THE NEGOTIATIONS AN ATLANTA JURY HANDED DOWN A 105 MILLION VERDICT AGAINST GM IN A PICKUP CASE THE TRAFFIC SAFETY ADMINISTRATION ASKED GM TO RECALL THE TRUCKS AND ALMOST ALL THE INITIAL RULINGS IN THE CLASSACTION CASES WERE RUNNING AGAINST GM BOTH SIDES WERE RUSHING TOWARD A DEADLINE THIS PAST MONDAY WHEN US DISTRICT COURT JUDGE WILLIAM H YOHN JR PHILADELPHIA WAS EXPECTED TO HEAR ARGUMENTS ON WHETHER TO CERTIFY TRUCK OWNERS AS A NATIONAL CLASS OF PLAINTIFFS SUCH A MOVE WOULD HAVE MADE IT MORE LIKELY FOR THE PLAINTIFFS TO PUSH AHEAD WITH THE CASE RATHER THAN SETTLING THAT WAS A DROPDEAD DATE SAYS TIMOTHY CROWLEY A HOUSTON ATTORNEY WHO REPRESENTED TRUCK OWNERS THE DEADLINE MADE BOTH SIDES' NEGOTIATING POSITIONS MORE FLEXIBLE HE SAYS ALTHOUGH PLAINTIFF'S ATTORNEYS AT TIMES WALKED AWAY FROM THE NEGOTIATING TABLE GM IN THE END DID MANAGE TO COME AWAY WITH A DEAL TO ISSUE SOME 47 MILLION COUPONS EACH GOOD FOR 1000 TOWARD THE PURCHASE OF A NEW GM LIGHT TRUCK WHILE THAT MAY SOUND LIKE A HUGE LIABILITY IT IS DOUBTFUL THAT MOST OF THE COUPONS WILL BE USED A 33 RESPONSE RATE BY PLAINTIFFS IN CONSUMER CLASSACTION CASES IS CONSIDERED HIGH ONE WALL STREET ANALYST ESTIMATED THE RETURN AT 5 AND NO MATTER HOW MANY OF THE COUPONS ARE USED THEY ARE MOST LIKELY TO HAVE ONLY A POSITIVE EFFECT ON GM'S BOTTOM LINE THAT IS BECAUSE THE AVERAGE PROFIT ON TRUCKS IS FAR GREATER THAN 1000 A VEHICLE INDEED 1000 MARKETING REBATES ARE COMMON IN THE INDUSTRY IF THE COUPONS ENCOURAGE EXTRA SALES OF TRUCKS SO MUCH THE BETTER FOR GM THE SETTLEMENT DOES NOT REQUIRE OWNERS TO SCRAP OR REPAIR THEIR TRUCKS THATPROMPTED TWO WASHINGTON ADVOCACY GROUPS THE CENTER FOR AUTO SAFETY AND PUBLIC CITIZEN TO SAY THEY WILL INTERVENE TO URGE THE COURTS TO ADD SUCH A REQUIREMENT TO THE AGREEMENT ACCORDING TO THE SETTLEMENT THE PLAINTIFF'S ATTORNEYS ARE TO MAKE A SEPARATE REQUEST FOR LEGAL FEES ESTIMATES RANGE FROM THE SINGLEDIGIT MILLIONS TO 25 MILLION ATTORNEYS SAID UNLIKE SOME CLASSACTION CASES THE FEES WILL NOT AFFECT THE TOTAL AMOUNT OF REIMBURSEMENT TO CONSUMERS THEY ALSO WILL NOT SIGNIFICANTLY ALTER GM'S BOTTOM LINE STARTING LATE LAST YEAR THE THREE GROUPS OF PLAINTIFFS' LAWYERS WHO WERE PRESSING THE CLASSACTION COMPLAINTS AGAINST GM INDICATED THEY WERE WILLING TO SETTLE OUT OF COURT INITIALLY THERE WERE DISCUSSIONS ABOUT MOVING THE GAS TANKS INSIDE THE TRUCKS' FRAME RAILS OR PROTECTING THE TANKS WITH A CAGE OR WITH FLEXIBLE MATERIAL PLACED WITHIN THEM BUT GM INSISTED THAT IT WOULD NEGOTIATE NO REPAIRS OR MODIFICATIONS SAYS EDWARD C WOLFE GM'S INHOUSE ATTORNEY WHO HANDLED MUCH OF THE NEGOTIATIONS ANY REPAIR WOULD VIOLATE GM'S STRATEGY OF SEPARATING THE DEMANDS OF CUSTOMERS FROM DEMANDS OF FEDERAL SAFETY REGULATORS MEANWHILE THE THREAT OF MORE CLASSACTION SUITS KEPT GROWING WORKING WITH LOCAL COUNSEL MICHAEL G CROW AN ATTORNEY WITH ADAMS & REESE IN NEW ORLEANS FILED ONE CASE IN EACH OF 10 SOUTHEASTERN STATES GM TRIED BUT LOST A BID TO STAY THE LEGAL PROCEEDINGS PENDING A FINAL RECALL RULING FROM THE TRAFFIC SAFETY ADMINISTRATION THEN ON APRIL 9 THE FEDERAL GOVERNMENT FORMALLY REQUESTED A RECALL THAT MADE GM MORE EAGER TO DEAL PLAINTIFFS' LAWYERS SAY THOUGH GM DENIES IT GM SAYS THE NEGOTIATIONS BEGAN TO FALL INTO PLACE ONLY ON JUNE 8 AT A MEETING AT GM'S LAW OFFICES IN DETROIT THEN FOR THE FIRST TIME THE AUTO MAKER'S ATTORNEYS AND THE THREE SEPARATE GROUPS OF PLAINTIFFS' ATTORNEYS WERE ALL IN THE SAME ROOM AT THE SAME TIME EVEN AT THIS LATE STAGE THERE WERE WIDE SPLITS AMONG THE PLAINTIFFS THE TEXAS ATTORNEYS HAD HIRED A LITIGATION CONSULTING FIRM TO CONDUCT FOCUS GROUPS TO LEARN WHAT THEIR CLIENTS EXPECTED FROM A SETTLEMENT SURPRISINGLY SAYS SAM BAXTER ONE OF THE TEXAS LAWYERS WE FOUND THEY LIKED THEIR GM TRUCKS AS A RESULT THE TEXAS ATTORNEYS STARTED PUSHING FOR COUPONS GOOD ON A NEW GM PRODUCT BUT MR CROW THE NEW ORLEANS LAWYER SAID HIS CLIENTS WERE TOO POOR TO BUY A NEW TRUCK EVEN WITH A COUPON HE WANTED SOMETHING HIS CLIENTS COULD SELL MEANWHILE OTHER PLAINTIFFS WERE STILL PUSHING FOR GM TO OFFER REPAIRS GM WAS ABLE TO USE MR CROW TO HELP CONVINCE OTHER PLAINTIFFS THAT A MODIFICATION WOULD BE OUT OF THE QUESTION AND THE AUTO MAKER PUSHED THE PLAINTIFFS' ATTORNEYS TOWARDS A COMPROMISE WHICH INCLUDED A PROVISION FOR TRANSFERRING THE COUPONS ADDING PRESSURE TO PLAINTIFFS' LAWYERS WAS THAT EVEN THE OLDEST OF THE GM PICKUPS HAD RETAINED THEIR RESALE VALUE DESPITE A GROWING CONTROVERSY ABOUT THE PICKUPS' SAFETY DIMINUTION IN VALUE WOULD HAVE BEEN VERY DIFFICULT TO PROVE ACKNOWLEDGES MR CROW MOREOVER THE TIME LIMIT FOR FILING SUITS IN SOME STATES HAD EXPIRED IN THE END BOTH PARTIES DECLARED THE SETTLEMENT A VICTORY BUT IT'S NOT ONE FOR JOAN CLAYBROOK PRESIDENT OF PUBLIC CITIZEN WHICH IS INTERVENING TO CHANGE THE SETTLEMENT SHE SAID THE AGREEMENT SEEMS LESS A SOLUTION TO A SAFETY PROBLEM AND MORE LIKE A MARKETING STRATEGY BY GM MORE THAN 170 DOCTORS ARE SEEKING TO JOIN A FEDERAL ANTITRUST LAWSUIT AGAINST A PHYSICIAN LICENSING BOARD AND 28 TEACHING HOSPITALS THE PHYSICIANS ALLEGE THAT THE AMERICAN BOARD OF EMERGENCY MEDICINE EAST LANSING MICH WHICH CERTIFIES EMERGENCYROOM DOCTORS IS CONSPIRING WITH THE HOSPITALS TO MONOPOLIZE THE MARKET FOR CERTIFIED EMERGENCYROOM PHYSICIANS THE DOCTORS HAVE ASKED TO JOIN ONE PHYSICIAN'S SUIT ALREADY IN PROGRESS IN FEDERAL DISTRICT COURT IN BUFFALO NY AND TURN IT INTO A CLASS ACTION ON BEHALF OF 14000 EMERGENCYROOM PHYSICIANS ACROSS THE COUNTRY THE ALLEGED MONOPOLY BEGAN WHEN THE BOARD IN 1988 CUT OFF ONE ROUTE TO CERTIFICATION ALMOST EVERYONE WHO WANTS TO TAKE THE CERTIFICATION TEST NOW MUST SPEND AT LEAST THREE YEARS IN AN EMERGENCYMEDICINE RESIDENCY PROGRAM SUCH AS THOSE THE DEFENDANT HOSPITALS PROVIDE IN THE PAST THEY COULD DEMONSTRATE OTHER RELEVANT FIELD EXPERIENCE THE BOARD AND HOSPITALS ARGUE IN A BRIEF THAT THE 1988 CUTOFF HAD BEEN ANNOUNCED YEARS IN ADVANCE THE BOARD WAS DESIGNED IN THE LATE 1970S TO CERTIFY DOCTORS WHO WENT THROUGH RESIDENCY ACCORDING TO THE BRIEF BUT FOR A DECADE THE BOARD ALLOWED EXCEPTIONS BECAUSE OF A GRANDFATHER CLAUSE THE ARGUMENT THAT NARROWING CERTIFICATION REQUIREMENTS COULD QUALIFY AS AN ANTITRUST VIOLATION HAS BEEN TRIED BEFORE OFTEN WITHOUT SUCCESS ANTITRUST LAWYERS SAID BUT THE ATTORNEY FOR THE DOCTORS JAMES T HALVERSON OF THE NEW YORK LAW FIRM SHEARMAN & STERLING SAID HE WILL DRAW ARGUMENTS FROM CASES INVOLVING OTHER PROFESSIONAL ASSOCIATIONS AS WELL AS CASES IN WHICH DOCTORS' APPLICATIONS HAVE BEEN REJECTED BY HOSPITALS EPA SLOT FILLED THE CLINTON ADMINISTRATION NAMED TENNESSEE'S CHIEF DEPUTY ATTORNEY GENERAL JEAN NELSON TO BE GENERAL COUNSEL AT THE ENVIRONMENTAL PROTECTION AGENCY THE MOVE FURTHER EXTENDS THE INFLUENCE OF VICE PRESIDENT AND FORMER TENNESSEE SENATOR AL GORE OVER ENVIRONMENTAL POLICY THE EPA ADMINISTRATOR CAROL BROWNER IS A FORMER SENATE AIDE TO MR GORE AS IS KATHLEEN MCGINTY CHIEF OF THE WHITE HOUSE OFFICE ON THE ENVIRONMENT THE 46YEAROLD MS NELSON WHO MUST BE CONFIRMED BY THE SENATE WAS CHIEF OF STAFF TO TIPPER GORE MR GORE'S WIFE DURING THE 1992 PRESIDENTIAL CAMPAIGN NOTED MARGARET F MORROW A NAME PARTNER IN THE LOS ANGELES LAW FIRM QUINN KULLY & MORROW WAS ELECTED PRESIDENT OF THE STATE BAR OF CALIFORNIA MS MORROW 42 YEARS OLD WILL BE THE FIRST WOMAN PRESIDENT OF THE CALIFORNIA BAR THE COUNTRY'S LARGEST SHE WILL SUCCEED HARVEY I SAFERSTEIN 49 ON OCT 10 JUNDA WOO CONTRIBUTED TO THIS COLUMN 9307210005 930721 CITICORP WELLS FARGO OTHER BIG BANKS POST STRONG GAINS IN SECONDPERIOD NET BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S BIGGEST BANKS INCLUDING CITICORP AND WELLS FARGO & CO CONTINUED TO REPORT SURPRISINGLY STRONG SECONDQUARTER EARNINGS FUELED BY GAINS IN FOREIGN EXCHANGE AND SECURITIES TRADING AND FEWER CHARGES FOR BAD LOANS CITICORP REPORTED THAT EARNINGS MORE THAN TRIPLED WHILE CHEMICAL BANKING CORP'S RESULTS CLIMBED NEARLY 59 NATIONSBANK CORP REPORTED THAT EARNINGS CLIMBED 22 WHILE BANC ONE CORP SAID INCOME ADVANCED 16 ON THE WEST COAST EARNINGS ROSE 82 AT WELLS FARGO WHILE NET INCOME JUMPED 111 AT FIRST INTERSTATE BANCORP PITTSBURGH'S MELLON BANK CORP SAID EARNINGS ROSE BY 10 EXCEPT FOR BANC ONE ALL THE EARNINGS WERE BETTER THAN EXPECTED FOLLOWING A CLEAR TREND IN THE SECOND QUARTER BANKS BENEFITED FROM A DECLINE IN PROBLEM LOANS CONTINUED STRONG PROFIT MARGINS BETWEEN BORROWING AND LENDING COSTS AND A PICKUP IN FEEBASED BUSINESSES CITICORP AND CHEMICAL HAD HUGE TRADING RESULTS VIRTUALLY THE ONLY SOURCE OF REAL REVENUE STRENGTH AMONG MONEYCENTER BANKS LOAN DEMAND REMAINS SPORADIC BANC ONE AND NATIONSBANK REPORTED A PICKUP IN LOANS OUTSTANDING WHICH HELPS INTEREST INCOME THE RESULTS FOR THE QUARTER SHOW THEY ALL KNOW HOW TO TRADE BONDS AND FOREIGN EXCHANGE AND CREDIT QUALITY IS GETTING BETTER SAID JAMES ROSENBERG BANKING ANALYST AT SHEARSON LEHMAN BROTHERS BUT WALL STREET HAS REACTED BY SELLING SHARES DESPITE BETTER THAN EXPECTED RESULTS AFTER BIDDING BANK STOCKS UP IN ANTICIPATION OF THE RESULTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE EXCEPTIONS WERE WELLS AND FIRST INTERSTATE WELLS ROSE TO 10925 UP 2 AND FIRST INTERSTATE EDGED UP TO 64625 UP 125 CENTS BUT CITICORP SHARES EASED 3175 DOWN 25 CENTS WHILE CHEMICAL SHARES WERE UNCHANGED AT 3975 NATIONSBANK FELL TO 49 DOWN 875 CENTS AND BANC ONE SHARES DIPPED TO 5450 DOWN 100 MELLON SLIPPED TO 5575 DOWN 50 CENTS THE LARGEST BANKING COMPANY IN THE US CONTINUED ITS STRING OF STRONG EARNINGS ITS BEST RESULT SINCE THE FIRST QUARTER OF 1989 AND ABOVE WALL STREET'S FORECAST OF 59 CENTS A SHARE IN THE WHOLESALE BANK GLOBAL FINANCE REPORTED SECONDQUARTER EARNINGS OF 451 MILLION UP 55 FROM 291 MILLION IN THE YEAREARLIER PERIOD REFLECTING RECORD TRADING REVENUE AND LOWER CREDIT COSTS EARNINGS OF THE GLOBAL CONSUMER BANK ROSE TO 323 MILLION UP 48 FROM 218 MILLION IN THE SECOND QUARTER OF 1992 EXPENSES ARE GROWING MODESTLY DUE TO ADVERTISING AND OTHER INVESTMENTS IN BUSINESSES THE NEW YORK COMPANY SAID WE'VE MADE STEADY PROGRESS ON A LOT OF FRONTS THOMAS JONES EXECUTIVE VICE PRESIDENT TOLD ANALYSTS YESTERDAY WHILE THE COMPANY'S MEASUREMENT OF CREDIT COSTS SHOWS THAT COSTS ARE FALLING FASTER THAN EXPECTED IN PARTICULAR COMMERCIAL REAL ESTATE THE PROVISION FOR FUTURE LOAN LOSSES ACTUALLY ROSE A BIT IN THE QUARTER TO 715 MILLION FROM 689 MILLION IN THE FIRST QUARTER BECAUSE CHARGEOFF OF BAD DEBTS FELL THE NET EFFECT HAS BEEN AN INCREASE IN ITS RESERVES ITS IMPORTANT TIER ONE CAPITAL RATIO ROSE TO 57 UP FROM 52 LAST QUARTER AND 43 IN THE YEAREARLIER PERIOD THE NATION'S THIRD LARGEST BANKING COMPANY ALSO IN NEW YORK REPORTED A RECORD QUARTER ITS BEST QUARTER SINCE ITS MERGER WITH MANUFACTURERS HANOVER CORP THE CONSENSUS WAS FOR NET OF 104 INTEREST INCOME WAS UP 69 TO 118 BILLION WHILE NONINTEREST INCOME JUMPED 41 DUE TO AN INCREASE IN TRADING REVENUE CORPORATE FINANCE AND SYNDICATION FEES AND OTHER NONLENDING SERVICES NONPERFORMING ASSETS FELL BY 843 MILLION ALTHOUGH THE PROVISION FOR LOAN LOSSES EDGED UP TO 363 MILLION FROM 312 MILLION IN THE FIRST QUARTER AND 345 MILLION IN THE YEARAGO RESULTS IT TOO RAISED RESERVE LEVELS THE SPEED OF IMPROVEMENT OF CREDIT QUALITY WAS A SURPRISE SAID MR ROSENBERG OF SHEARSON THE STRONG EARNINGS GROWTH AT NATIONSBANK THE COUNTRY'S FIFTHLARGEST BANKHOLDING COMPANY WAS PROPELLED BY A BROADBASED INCREASE IN NEW LOANS AND A SIZABLE DROP IN NONPERFORMING ASSETS IN THE SECOND QUARTER LOAN BALANCES JUMPED BY 28 BILLION EQUIVALENT TO A 16 ANNUALIZED RATE QUARTERLY AVERAGE LOANS AND LEASES HIT 753 BILLION UP 13 OVER THE SECOND QUARTER OF 1992 THE GROWTH DURING THE QUARTER WAS SPREAD AMONG SEVERAL DIFFERENT DEPARTMENTS AS COMMERCIAL LOANS EXPANDED BY 1 RESIDENTIAL MORTGAGE LOANS JUMPED 10 THE BANK CARD LOAN PORTFOLIO GREW BY 3 AND OTHER CONSUMER LOANS GREW 4 ACCORDING TO THE COMPANY MEANWHILE CREDIT QUALITY AT THE CHARLOTTE NCBASED COMPANY CONTINUED TO STRENGTHEN WITH LOW INTEREST RATES STILL STOKING THE MARKET FOR DISTRESSED REAL ESTATE ON JUNE 30 TOTAL NONPERFORMING ASSETS STOOD AT 168 BILLION AN 841 MILLION OR 33 DROP FROM THE SAME PERIOD IN 1992 IN THE SECOND QUARTER ALONE NONPERFORMING ASSETS FELL BY 242 MILLION OR 13 BANC ONE SAID ITS EARNINGS IMPROVEMENT WAS AIDED BY INCREASED LOAN GROWTH PARTICULARLY IN RESIDENTIAL MORTGAGES AND CONSUMER LOANS TOTAL LOANS AS OF JUNE 30 WERE UP 94 OVER A YEAR EARLIER BANC ONE'S NET INTEREST MARGIN IMPROVED TO 63 PERCENTAGE POINTS IN THE QUARTER FROM 596 PERCENTAGE POINTS A YEAR AGO THE BANK HOLDING COMPANY IN COLUMBUS OHIO ALSO SAID ITS CREDIT QUALITY IMPROVED AS NONPERFORMING ASSETS DROPPED BY 260 MILLION FROM THE YEARAGO PERIOD LAST YEAR'S RESULTS WERE RESTATED TO INCLUDE RECENT ACQUISITIONS THE COMPANY CITING THE STRONG QUARTERLY RESULTS AND EXCELLENT EARNINGS PROSPECTS ALSO DECARED A FIVEFORFOUR STOCK SPLIT AND RAISED ITS DIVIDEND 11 THE INCREASE WAS THE SECOND THIS YEAR FOR BANC ONE THE SAN FRANCISCOBASED BANK PROVIDED FURTHER EVIDENCE THAT THE SLIDE IN CALIFORNIA PROPERTY VALUES HAS STOPPED AS PROFIT ROSE 82 FAR OUTSTRIPPING ANALYSTS' EXPECTATIONS FOR THE THIRD CONSECUTIVE QUARTER THE WALL STREET CONSENSUS WAS FOR EARNINGS OF 183 A SHARE VS THE REPORTED 246 A SHARE WELLS FARGO'S LOANLOSS CHARGE AT 140 MILLION DOWN FROM 210 MILLION IN THE FIRST QUARTER AND 300 MILLION A YEAR AGO WAS ROUGHLY EQUAL TO CHARGEOFFS SIGNALLING THE BANK'S FAITH THAT RESERVES ARE ADEQUATE TO COVER FUTURE LOSSES PROBLEM ASSETS FELL 76 TO 232 BILLION FROM 251 BILLION WE'RE NOT SAYING THAT EVERYTHING HAS PASSED IN TERMS OF CALIFORNIA BUT WHEN A BANK CONSISTENTLY BRINGS ITS LOANLOSS PROVISION DOWN THAT IS THE MOST KEY INDICATOR OF PROFITABILITY AND STOCKPRICE PERFORMANCE SAID FIRST BOSTON CORP ANALYST THOMAS HANLEY DESPITE A 12 BILLION DROP IN AVERAGE LOANS OUTSTANDING TO 343 BILLION NET INTEREST INCOME FELL ONLY SLIGHTLY TO 658 MILLION FROM 671 MILLION REFLECTING A WIDENED GAP BETWEEN BORROWING COSTS AND LENDING RATES THE BANK ALSO MAINTAINED ITS FIRM GRIP ON NONINTEREST EXPENSES POSTING A SLIGHT 5 RISE TO 531 MILLION FROM 506 MILLION THE COMPANY'S NET INCOME MORE THAN DOUBLED IN A CONTINUATION OF A TURNAROUND BEGUN IN EARLY 1992 WELL AHEAD OF ITS CALIFORNIA RIVALS THE BANK IN LOS ANGELES WARNED TWO WEEKS AGO THAT ANALYSTS' SECONDQUARTER ESTIMATES OF 137 A SHARE WERE TOO LOW BUT ITS REPORTED 160 EXCEEDED EVEN THE MOST UPBEAT WALL STREET PROJECTION PROBLEM ASSETS IN STEADY DECLINE BECAUSE OF AN AGGRESSIVE LIQUIDATION PROGRAM TOTALED 567 MILLION DOWN 15 FROM 668 MILLION AT THE END OF THE FIRST QUARTER AND DOWN A WHOPPING 53 FROM 12 BILLION A YEAR AGO THE LOANLOSS PROVISION WAS 261 MILLION COMPARED WITH THE YEAREARLIER LEVEL OF 878 MILLION EXCLUDING TAX BENEFITS IN THE YEARAGO PERIOD MELLON ALSO SHOWED STRONG EARNINGS IMPROVEMENT WITH FULLY TAXED EARNINGS ON A PROFORMA BASIS RISING 39 THE PITTSBURGH BANK HOLDING COMPANY'S NET INTEREST REVENUE ROSE 12 AND ITS FEE REVENUE BY 39 LARGELY BECAUSE OF THE ACQUISITION OF BOSTON CO COMPLETED IN MAY MELLON ALSO GOT A BOOST FROM A 10 REDUCTION IN NONPERFORMING ASSETS DESPITE INHERITING 69 MILLION OF NONPERFORMING ASSETS FROM BOSTON CO 9307210004 930721 MARKETING & MEDIA CAPITAL CITIES/ABC POSTS INCREASE OF 3 IN SECONDPERIOD NET NEW YORK CAPITAL CITIES/ABC INC SAID SECONDQUARTER NET INCOME ROSE ABOUT 3 TO 1519 MILLION OR 921 A SHARE ON HIGHER BROADCASTING REVENUE AND LOWER PUBLISHING REVENUE A YEAR EARLIER NET INCOME WAS 1475 MILLION OR 884 A SHARE REVENUE GREW 36 TO 144 BILLION FROM 139 BILLION LAST YEAR'S SECOND QUARTER INCLUDED A ONETIME GAIN OF 114 MILLION OR 68 CENTS A SHARE FROM THE SALE OF THE COMPANY'S INTEREST IN GERMAN NETWORK TELE5 WITHOUT THAT GAIN THE LATEST QUARTER'S PERSHARE EARNINGS IMPROVED 13 THE COMPANY SAID BROADCASTING REVENUE ROSE 58 TO 118 BILLION FROM 112 BILLION REVENUE FOR THE ABC TELEVISION NETWORK INCREASED SLIGHTLY THE COMPANY SAID PUBLISHING REVENUE FELL 65 TO 2558 MILLION FROM 2735 MILLION EXCLUDING THE EFFECT OF 1992 DISPOSITIONS PUBLISHING REVENUE INCREASED 4 THE COMPANY SAID OPERATING PROFIT FOR THE QUARTER ROSE 1 TO 2707 MILLION FROM 2687 MILLION BROADCASTING OPERATING EARNINGS CLIMBED 33 TO 2445 MILLION FROM 2366 MILLION ALTHOUGH EARNINGS FOR THE ABC TELEVISION NETWORK FELL PUBLISHING EARNINGS DROPPED 95 TO 363 MILLION FROM 401 MILLION IN THE FIRST SIX MONTHS NET INCOME BEFORE AN EXTRAORDINARY CHARGE WAS 2224 MILLION OR 1351 A SHARE UP 17 FROM THE YEAREARLIER PERIOD'S 1893 MILLION OR 1135 A SHARE BEFORE THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES A CHARGE OF 121 MILLION OR 74 CENTS A SHARE WAS RECORDED IN THE LATEST FIRST HALF FOR EARLY DEBT REDEMPTIONS BRINGING NET TO 1277 A SHARE COMPARED WITH 272 AFTER RESTATEMENT FOR THE ACCOUNTING CHANGES REVENUE FOR THE HALF ROSE 52 TO 262 BILLION FROM 249 BILLION 9307210003 930721 NATIONAL MEDICAL POSTS PROFIT OF 28 MILLION IN FISCAL 4TH QUARTER SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC POSTED NET INCOME OF 28 MILLION IN THE FOURTH QUARTER ENDED MAY 31 AFTER SEVERAL LARGE ONETIME ITEMS FOR UNUSUAL LEGAL COSTS EMPLOYEE REDUCTIONS AND ASSET SALES ON A PRETAX BASIS THE CHARGES WERE 65 MILLION FOR LEGAL EXPENSES AND 593 MILLION FOR COSTS RELATED TO RECENT REORGANIZATIONS AT CORPORATE HEADQUARTERS AND AT THE REHABILITATION HOSPITAL DIVISION NATIONAL MEDICAL WON'T SPECIFY HOW MANY EMPLOYEES HAVE BEEN DISMISSED THE HOSPITAL COMPANY ALSO RECORDED A 52 MILLION PRETAX GAIN ON INVESTMENTS AND NURSING HOME SALES REDUCED BY A 33 MILLION INCREASE IN RESERVES FOR AN EXPANDED PROGRAM TO DIVEST ITSELF OF PSYCHIATRIC FACILITIES IN THE PAST YEAR THE COMPANY HAS SOLD 11 OF ITS HOSPITALS AND PLANS TO SELL 18 MORE THAT INCLUDES FIVE RECENTLY ADDED TO THE LIST THE LION'S SHARE OF THE LEGAL CHARGE IS A RESERVE FOR THE ESTIMATED COST OF FIGHTING THREE LAWSUITS BY INSURERS A NATIONAL MEDICAL SPOKESMAN SAID THE CHARGE ALSO COVERS COSTS RELATED TO NATIONAL MEDICAL'S COOPERATION WITH STATE AND FEDERAL AGENCIES INVESTIGATING PRACTICES OF THE COMPANY'S PSYCHIATRIC DIVISION NATIONAL MEDICAL HAS DENIED ANY WRONGDOING IN ONE LAWSUIT TALKS CONTINUE THE SECOND CASE HAS BEEN SENT TO BINDING ARBITRATION WHICH IS EXPECTED TO INCLUDE THE THIRD LAWSUIT PERSHARE EARNINGS IN THE QUARTER WERE TWO CENTS IN THE YEAREARLIER QUARTER THE HEALTHCARE SERVICES CONCERN HAD A LOSS OF 783 MILLION OR 46 CENTS A SHARE AFTER A 187 MILLION PRETAX CHARGE MAINLY FOR DIVESTITURES REVENUE IN THE LATEST QUARTER FELL 4 TO 9565 MILLION FROM 1 BILLION NATIONAL MEDICAL ENTERPRISES INC AND SEVERAL INSURANCE COMPANIES HAVE BEEN ORDERED BY A FEDERAL JUDGE IN TEXAS TO SETTLE A DISPUTE THROUGH NONBINDING MEDIATION AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE DISPUTE WOULD BE SETTLED THROUGH ARBITRATION 9307210002 930721 TRANSPORTATION GRAIN PROCESSOR IMPROVISES TO STAY AFLOAT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL ST LOUIS THE SALLY ARCHER AN ARCHER DANIELS MIDLAND CO TUGBOAT WAS DOCKED ALONG THE TURBULENT MISSISSIPPI RIVER DURING A RAINSTORM JULY 7 CHAINED TO A FLEET OF GRAIN BARGES AT 3 AM A LOUD COLLISION SUDDENLY JOLTED THE FOUR CREW MEMBERS AWAKE THE MOST FEARED EVENT IN THE BARGE TRADE A BREAKAWAY HAD BEGUN OTHER BARGES AT THE ADM GRAIN TERMINAL HAD TORN LOOSE FROM THEIR UNDERGROUND CONCRETE MOORING AND HAD STRUCK THE SALLY ARCHER'S FLEET BASHING THEM LOOSE TWENTYFOUR BARGES EACH THE SIZE OF A FOOTBALL FIELD WERE CAREENING DOWN THE MISSISSIPPI THREATENING OTHER SHIPPING AND A VITAL BRIDGE ON THE SALLY ARCHER CAPT TOBE GRANTHAM WORKED THE TUG'S ENGINES STRUGGLING TO DIRECT THE FLEET BACK TO ITS DOCK ON THE RIVER'S WESTERN SHORE THE OTHER CREW MEMBERS SPRINTED UP AND DOWN THE DECKS OF BARGES TYING OFF LINES AND TIGHTENING HUGE CABLES SO THE VESSELS WOULDN'T STRAY FROM EACH OTHER IN THE END ALL BUT ONE OF THE SALLY ARCHER'S FLEET STAYED TOGETHERAND JUST ONE BARGE FLOATED OFF FOR ADM THE NATION'S BIGGEST GRAIN PROCESSOR THE DEVASTATING FLOODING IN THE MIDWEST HAS BECOME A WEEKSLONG STRUGGLE TO KEEP OPERATIONS FROM SPINNING OUT OF CONTROL THE COMPANY WHICH HAS MANY PROCESSING PLANTS AND GRAIN TERMINALS IN THE FLOODAFFECTED REGION HAS BEEN FORCED TO REINVENT ITS VAST DISTRIBUTION NETWORK AS FLOODING CONTINUES TO SNARL RIVER RAIL AND ROAD TRANSPORT LINKS THE DECATUR ILL COMPANY'S SCRAMBLE TO MAINTAIN A SEMBLANCE OF NORMAL BUSINESS THESE PAST FEW WEEKS ILLUSTRATES JUST HOW VULNERABLE A MAJOR CORPORATION CAN BE IN THE FACE OF A NATURAL DISASTER AND HOW OFTEN THROUGH QUICK IMPROVISING ITS EMPLOYEES CAN GREATLY DIMINISH THE HAVOC A QUARTER OF ADM'S GRAINS LIVESTOCK FEED AND VEGETABLE OILS AND MOST OF THOSE BOUND FOR EXPORT NORMALLY ARE DISPATCHED DOWN THE NOWCLOSED MISSISSIPPI SYSTEM FROM THE NORTHERN RIVER PORTS OF THE MIDWEST TWOTHIRDS OF ADM'S COVERED BARGE FLEET OF NEARLY 2000 VESSELS ARE IDLED NOW IN NORMAL TIMES THE GRAIN HAULED DOWN THE MISSISSIPPI TO NEW ORLEANS IS POURED INTO HUGE OCEAN VESSELS BOUND FOR ADM PROCESSING PLANTS AT ROTTERDAM AND HAMBURG MOREOVER FLOODING IN IOWA AND MISSOURI HAS SEVERED THE RAIL LINKS TO THE WEST COAST ON WHICH ADM NORMALLY TRANSPORTS FRUCTOSE CORN SYRUP TO BOTTLING PLANTS AND BAKING COMPANIES THE FALLOUT IS SIGNIFICANT THE 92 BILLIONAYEAR COMPANY LOSES MORE THAN 1 MILLION A DAY MOSTLY RELATED TO BARGE TRAFFIC WHILE GRAIN CAN'T PROCEED SOUTH NEITHER CAN BARGES HAUL NORTH THEIR NORMAL LOADS OF SALT COAL AND FERTILIZER CHAIRMAN DWAYNE O ANDREAS SAYS SOME 100 MILLION IN GRAIN DELIVERIES TO ADM EUROPEAN PLANTS HAVE BEEN SHUT OFF LIKE BATTLEFIELD GENERALS ADM OFFICIALS HAVE BEEN REDEPLOYING THEIR TROOPS AND SCOURING THE COUNTRYSIDE FOR SUPPLIES THEY HAVE MOVED CREWS TO HELP TIE UP BARGES IN SAFER HARBORS SCROUNGED FOR TRUCKS AND ALREADYSCARCE RAIL CARS TO REPLACE STRANDED BARGES AND DISPATCHED A CONVOY OF TRUCKS WITH WATER PUMPS TO KEEP A VITAL PROCESSING PLANT JUST 25 FEET FROM A MISSISSIPPI RIVER LEVEE FROM FLOODING THE FLOODING BEGAN AFFECTING ARCHER DANIELS' SHIPPING OPERATIONS AT SAVAGE MINN NEAR MINNEAPOLIS ON JUNE 19 THE RAINSWOLLEN MISSISSIPPI SURGED HIGH ENOUGH THERE THAT BARGES COULDN'T FIT UNDER GRAIN SPOUTS AT THE TIME THIS LOOKED LIKE A MINOR ANNOYANCE BUT AS THE FLOODING CAME SOUTH THIS YEAR SO HAVE THE RAINS AND THERE'S JUST NEVER BEEN A REPRIEVE SAYS RODNEY A SHORT WHO IS RESPONSIBLE FOR THE LOGISTICS OF MUCH OF THE BARGE AND TRUCK TRAFFIC EARLY THIS MONTH SHORTLY AFTER THE MISSISSIPPI WAS CLOSED TO BARGE TRAFFIC MR SHORT AND BILL CAMP VICE PRESIDENT FOR TRANSPORTATION SOUGHT OUT TRUCKS AND RAIL CARS TO REPLACE STRANDED ADM SHIPMENTS FOR EXAMPLE A PLANT IN CLINTON IOWA WAS WITHIN AN HOUR OF SHUTTING DOWN ON JULY 12 FOR LACK OF RAIL CARS TO SHIP OUT FRUCTOSE AND ALCOHOL TO WEST COAST BOTTLERS AND BREWERS ADM OFFICIALS COMBED THE COUNTRY LOOKING FOR TANK CARS AND WAYS TO GET THEM TO CLINTON ON TIME THE OFFICIALS PICKED UP 80 CARS BY LEASING THEM FROM HUBINGER CO OF KEOKUK IOWA A CORN PROCESSOR TEMPORARILY SHUT DOWN BY FLOODING THEY SECURED 80 MORE FROM DECATUR FRUCTOSE RIVAL AE STALEY MANUFACTURING CO WORKERS EVEN THOUGHT TO CALL A NORMALLY BOOKEDUP RAILCAR LEASING COMPANY GATX CORP IN CHICAGO AND FOUND THAT SOME TANK CARS WHOSE LEASES HAD EXPIRED HAD BEEN RETURNED TO GATX THE RESULT 45 MORE CARS THE NEXT PROBLEM WAS GETTING THE CARS TO CLINTON IN TIME TO DO SOME GOOD THE CARS WERE ALL OVER THE COUNTRY SO ADM CALLED ON RAILROAD LINES TO APPROVE SPECIAL TRAINS TO HAUL THE CARS INTO CLINTON BUT THE CLINTON PLANT ONLY 25 FEET FROM A MISSISSIPPI RIVER LEVEE HAD OTHER PREDICAMENTS RIVER WATER UNDER PRESSURE FROM THE SURGING MISSISSIPPI WAS BEGINNING TO BUBBLE UP OUT OF THE GROUND AND INTO THE PROCESSING FACILITY ALSO THE ADM WATERPUMPING EQUIPMENT ON HAND WAS ELECTRICAL AND WOULD MALFUNCTION IF THE WATER ROSE FURTHER SO ADM OFFICIALS ARRANGED AN IMPROMPTU CONVOY OF FOUR TRUCKS TO HAUL AUTOMOBILESIZED DIESEL PUMPS FROM A COMPANY PLANT IN MONTEZUMA NY THE PUMPS HAVE KEPT FLOOD WATER OUT OF THE CLINTON FACILITY WE DON'T WANT TO SHUT THIS MONSTER DOWN SAYS TERRANCE S WILSON PRESIDENT OF ADM'S CORN PROCESSING DIVISION REFERRING TO THE FRUCTOSE PLANTS IN DECATUR CLINTON AND CEDAR RAPIDS IOWA THE REPLACEMENT RAIL CARS HAVE COST ADM ABOUT 100 EXTRA PER CARFUL OF FRUCTOSE SYRUP COMPANY OFFICIALS SAY ALSO A MORE CIRCUITOUS ROUTE TO THE WEST IS BEING EMPLOYED NOW THE NORMAL ROUTES WEST THAT HAVE BEEN BLOCKED THROUGH KANSAS CITY OR COUNCIL BLUFFS IOWA TAKE ABOUT 10 DAYS THE SUBSTITUTE TRAIL TAKES UP TO 17 DAYS TRAINS HAVE BEEN GOING THROUGH CHICAGO THEN SOUTH TO MEMPHIS AND WEST THROUGH ARKANSAS TO THE WEST COAST ADM IS TRYING TO COMPLEMENT ITS RAIL EFFORT WITH ITS FLEET OF TANK TRUCKS BUT SAYS BILL PATTERSON AN ADM TRUCKING MANAGER WITH TRUCKS YOU'RE JUST BUYING A COUPLE OF DAYS BECAUSE OF THE LARGER CAPACITY OF TRAINS THE LOGISTICS OF DELIVERING FRUCTOSE BY TRUCK ARE DIFFICULT FOR ANOTHER REASON EACH TIME A TRUCK MUCH SMALLER THAN A RAIL CAR DELIVERS ITS CONTENTS THE TANK HAS TO BE SANITIZED SO BACTERIA DON'T GROW TYING OFF BARGES IN SAFER HARBORS HAS PROVED TRICKY TOO MR SHORT FLEW BARGE CREWS NORTH TO ST PAUL FROM ST LOUIS TO ASSIST IN THAT WORK OTHER CREWS DROVE VANS TO UPRIVER PORTS BUT WITH THE RIVER TRAFFIC IDLED ADM HAS TEMPORARILY LAID OFF ABOUT 350 OF 500 BARGE CREWS THE EFFECTS ARE PERHAPS BEST SEEN AT ITS ST LOUIS BARGE TERMINAL WHICH IS PRACTICALLY A GHOST TOWN THESE DAYS WHERE TRUCKS NORMALLY LINE UP TO HAUL FRUCTOSE OR CAUSTIC SODA USED IN CORN PROCESSING THERE IS AN EMPTY LOT THE TOP OF A STOP SIGN PEEKS OUT ABOVE A SMALL RIVERSIDE LAKE WHERE A ROAD USED TO BE THE MISSISSIPPI ITSELF IS SURGING WITH A FORCE MANY TIMES NORMAL A FORCE THAT PROVIDED THE DRAMA ON THE MORNING OF JULY 7 WHEN ONLY THE SECOND BREAKAWAY FOR ADM IN FIVE YEARS OCCURRED WHEN DAMAGE FROM THE ACCIDENT WAS ASSESSED SEVEN VESSELS WERE FOUND TO HAVE BEEN SMASHED UP INCLUDING TWO SEVERELY ENOUGH THAT THEY ARE OUT OF COMMISSION THE BREAKAWAY ALSO PROVIDED ADM WITH A RELATIVELY INEXPENSIVE LESSON ABOUT THE POWER OF THE MISSISSIPPI NOW TO AVOID MORE DAMAGE TUGBOAT CREWS KEEP MOTORS RUNNING 24 HOURS A DAY PUSHING BARGES NORTH JUST TO HOLD THEM IN PLACE AGAINST THE SOUTHBOUND CURRENT ADM'S COSTLY HOLDING ACTION IS TO PREVENT WHAT THE RIVER COULD OTHERWISE DO RIP THE 20FOOTDIAMETER CONCRETE MOORINGS CALLED DEAD MEN OUT OF SATURATED GROUND THEN DRAG THEM AND FLEETS OF 300TON BARGES DOWNRIVER 9307210001 930721 TECHNOLOGY MERCK'S NET FALLS 73 BUT PROFIT RISES AT SMITHKLINE WARNERLAMBERT BAXTER BY ELYSE TANOUYE FOUR HEALTH CARE COMPANIES REPORTED MIXED EARNINGS RESULTS REFLECTING SLUGGISH DOMESTIC SALES COSTCUTTING EFFORTS AND GOVERNMENT HEALTHCARE REFORM EFFORTS IN EUROPEAN MARKETS MERCK & CO'S SECONDQUARTER EARNINGS WERE REDUCED SHARPLY BY A RESTRUCTURING CHARGE FOR COSTCUTTING MOVES THAT ELIMINATED 2100 JOBS MORE THAN TWICE THOSE TARGETED IN MARCH THREE OTHER HEALTH CARE COMPANIES WARNERLAMBERT CO SMITHKLINE BEECHAM PLC AND BAXTER INTERNATIONAL INC REPORTED EARNINGS GROWTH FOR THE QUARTER SO FAR THE GEOGRAPHIC BREADTH OF THE PRODUCT LINES COUPLED WITH REASONABLE NEW PRODUCT FLOW HAS ALLOWED THE INDUSTRY TO ACHIEVE 7 TO 10 GROWTH IN PHARMACEUTICALS IN A VERY VERY DIFFICULT MARKET SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST THIS HAS TO GIVE MODEST COMFORT THAT THE INDUSTRY WILL BE ABLE TO COPE AND GROW GOING FORWARD MERCK REPORTED A 73 DECLINE IN NET INCOME AFTER A PRETAX RESTRUCTURING CHARGE OF 775 MILLION ARISING FROM COSTCUTTING PROGRAMS EXCLUDING THE CHARGE OPERATING PROFIT AT 61 CENTS A SHARE WAS IN LINE WITH ANALYSTS' EXPECTATIONS SALES INCREASED 84 TO 257 BILLION MUCH OF THE CHARGE WAS FOR MERCK'S EARLYRETIREMENT PROGRAM IN THE US AND OTHER WORKFORCE REDUCTION EFFORTS MOST OF WHICH WILL BE COMPLETED BY THE END OF THE YEAR IN THE NEXT SEVERAL YEARS MERCK SAID IT PLANS TO CONSOLIDATE MANUFACTURING FACILITIES AND DISTRIBUTION CENTERS WHICH WILL RESULT IN ADDITIONAL WORKFORCE REDUCTIONS THE COMPANY HAD 38400 EMPLOYEES AT THE END OF LAST YEAR ALL THE STRONG STATEMENTS ABOUT COMMITMENT TO COST CONTROL IN THE FUTURE WERE ENCOURAGING SAID MARIOLA B HAGGAR AN ANALYST AT SALOMON BROTHERS INC THE WHITEHOUSE STATION NJ COMPANY'S INDIVIDUAL PRODUCT PERFORMANCE WAS MIXED SALES OF THE CHOLESTEROLLOWERING DRUG MEVACOR DECLINED 16 TO 280 MILLION BUT A SIMILAR DRUG ZOCOR INCREASED 65 TO 215 MILLION SALES OF THE PROSTATE TREATMENT PROSCAR SOARED TO ABOUT 35 MILLION BUT US SALES HAVE BEEN FLAT AT ABOUT 15 MILLION FOR THE LAST THREE QUARTERS MR SMITH SAID SALES OF HEART DRUG VASOTEC ROSE 12 TO 550 MILLION MERCK SHARES ROSE 1125 TO 3325 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SMITHKLINE BEECHAM'S EARNINGS GREW 20 BUT INCLUDED A 37 MILLION 555 MILLION GAIN FROM THE SALE OF ITS HAIR CARE BUSINESS SALES FROM CONTINUING OPERATIONS ROSE 23 TO 218 BILLION IN AN INTERVIEW SMITHKLINE'S CHIEF EXECUTIVE OFFICER ROBERT P BAUMAN CREDITED THE STRONG GROWTH OF NEW PRODUCTSANTIDEPRESSANT PAXIL ARTHRITIS DRUG RELAFEN ANTIEMETIC KYTRIL AND HEPATITIS A VACCINE HAVRIX TOTAL SALES OF THOSE DRUGS FOR ALL OF LAST YEAR WERE 320 MILLION BUT HAVE NEARLY REACHED THAT LEVEL IN JUST THE FIRST SIX MONTHS OF THIS YEAR HE SAID SALES OF TAGAMET THE COMPANY'S ANTIULCER DRUG DECLINED 3 IN THE QUARTER AND WILL CONTINUE TO DECLINE UNTIL IT GOES OFF PATENT IN 1994 IN US MR BAUMAN SAID ON THE BIG BOARD SMITHKLINE AMERICAN DEPOSITARY SHARES ROSE 25 CENTS TO 3125 WARNERLAMBERT'S PERFORMANCE WAS HURT BY REGULATORY PROBLEMS CHIEFLY AT PLANTS IN PUERTO RICO AS WELL AS BY WEAK MARKETS IN EUROPE THE COMPANY TOLD ANALYSTS ITS RECORDKEEPING AND OTHER VIOLATIONS COULD MEAN LOST SALES FOR THE YEAR OF AS MUCH AS 150 MILLION A SETTLEMENT WITH THE FOOD AND DRUG ADMINISTRATION IN THE FORM OF A CONSENT DECREE IS EXPECTED SOON IT SAID A SPOKESMAN SAID IT HOPES TO RECEIVE FDA APPROVAL SOON TO LAUNCH ITS ALZHEIMER'S TREATMENT COGNEX IN AUGUST ON THE BIG BOARD WARNERLAMBERT FELL 1125 TO 63875 BAXTER INTERNATIONAL BAXTER'S RESULTS WERE IN LINE WITH A DOWNBEAT PROJECTION THAT THE MEDICAL PRODUCTS AND SERVICES CONCERN HAD ISSUED EARLIER THIS MONTH IN WHICH IT SAID OPERATING EARNINGS WOULD DECLINE BECAUSE OF HIGHER AVERAGE MANUFACTURING COSTS FOREIGNEXCHANGE LOSSES AND AS MUCH AS 40 MILLION IN PRETAX COSTS ASSOCIATED WITH TRIMMING SOME 700 JOBS FROM ITS HOSPITAL BUSINESS THE FALLOFF CAME DESPITE A 65 INCREASE IN SALES TO 222 BILLION NET ROSE 65 GETTING A BOOST FROM A PRETAX GAIN OF ABOUT 35 MILLION FROM THE APRIL SALE OF A PACKAGING BUSINESS WHILE THE CURRENT HEALTHCARE ENVIRONMENT POSES CHALLENGES BAXTER NOTED THAT SALES AT ITS BIG US HOSPITALPRODUCTS DISTRIBUTION BUSINESS ARE GROWING AT MORE THAN DOUBLE THE RATE OF THE COMPANY'S SALES OVERALL ON THE BIG BOARD BAXTER SHARES ROSE 75 CENTS TO 27625 9307200169 930720 MARKETING & MEDIA TIME WARNER STARTS AUDIO BOOKS VENTURE BY TEAMING UP UNITS NEW YORK TIME WARNER INC'S BOOK PUBLISHING ARM AND ONE OF ITS RECORD LABELS HAVE STARTED A JOINT VENTURE TO PRODUCE AUDIO BOOKS THAT WILL BE DISTRIBUTED THROUGH RECORD STORES AS WELL AS BOOKSTORES AND OTHER RETAIL OUTLETS TIME WARNER AUDIOBOOKS WILL BE FORMALLY ANNOUNCED TODAY BY TIME WARNER'S PUBLISHING DIVISION WHICH INCLUDES WARNER BOOKS AND LITTLE BROWN & CO AND ATLANTIC GROUP PARENT OF ATLANTIC RECORDS THE NEW COMPANY WILL BE HEADED BY LORI WEINTRAUB 38 WHO WILL CONTINUE TO RUN ATLANTIC'S LOS ANGELESBASED VIDEO DIVISION TIME WARNER AUDIOBOOKS WILL ALSO HAVE AN OFFICE IN NEW YORK OTHER MAJOR PUBLISHERS HAVE BEEN PRODUCING AUDIOBOOKS FOR YEARS LAST YEAR SALES IN THE CATEGORY WERE ABOUT 850 MILLION BANTAM DOUBLEDAY DELL PUBLISHING GROUP RECENTLY STARTED A CROSSDISTRIBUTION DEAL WITH A SISTER MUSIC COMPANY BERTELSMANN AG'S BERTELSMANN MUSIC GROUP TIME WARNER AUDIOBOOKS PLANS TO EXTEND BEYOND AUDIO VERSIONS OF PUBLISHED BOOKS TO INCLUDE ORIGINAL AUDIOTAPES IN CATEGORIES LIKE FITNESS PARENTING FINANCIAL ADVICE AND CLASSICAL MUSIC IN ADDITION TO BOOK AND MUSIC OUTLETS THE NEW LINE WILL ALSO BE SOLD IN SUPERMARKETS DRUGSTORES CATALOGS AND BY DIRECT MAIL THE COMPANY'S FIRST TITLES WILL INCLUDE THE AUDIO VERSION OF WARNER BOOKS' THE DIARY OF JACK THE RIPPER OUT THIS FALL AND A LINE OF PARENTING TAPES BY RICHARD AND LINDA EYRE AUTHORS OF A POPULAR BOOK WHICH WASN'T PUBLISHED BY WARNER CALLED TEACHING CHILDREN VALUES MS WEINTRAUB SAYS SHE IS PLANNING A LINE OF FINANCE TAPES WITH FORTUNE MAGAZINE ALSO IN THE TIME WARNER STABLE AND SHE HOPES TO START SEVERAL AUDIO MAGAZINES TARGETED TO WOMEN AND SOLD THROUGH MASS MERCHANTS LIKE SUPERMARKETS 9307200168 930720 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS JULY 20AUG 2 LEADING NEW YORK CITY ARTISTS HAVE TRANSFORMED THE SORDID BLOCK BETWEEN TIMES SQUARE AND EIGHTH AVENUE INTO A 24HOUR GALLERY THE WINDOWS OF ABANDONED PORNVIDEO SHOPS AND THE LOBBIES OF XRATED THEATERS ARE NOW HOME TO QUIRKY INSTALLATIONS BY TWO DOZEN ARTISTS ARCHITECTS AND DESIGNERS JENNY HOLZER APHORISMS HAVE REPLACED MOVIE TITLES ON THEATER MARQUEES ALONG THE BLOCK WHILE SCULPTOR JOHN AHEARN HAS CONVERTED A BLIMPIE'S RESTAURANT INTO A STUDIO WHERE VISITORS CAN VOLUNTEER TO BE MODELS FOR HIS TRADEMARK BODY CASTS DRAMATIC PORTRAITS BY THREE OF AMERICA'S PREMIERE PHOTOGRAPHERS MR AVEDON'S AND MR SELKIRK'S PHOTOGRAPHS ARE OF NOTABLE PEOPLE FROM MARILYN MONROE AND THE DUKE AND DUCHESS OF WINDSOR TO ALGER HISS ARBUS'S ARE OF ORDINARY PEOPLEA PATRIOTIC BOY AT A PROWAR PARADE THE KING AND QUEEN OF A SENIOR CITIZEN'S BALL THE WORKS ARE DRAWN FROM THE MUSEUM'S PERMANENT COLLECTION HARRISON GALLERY OF PHOTOGRAPHY MINNEAPOLIS INSTITUTE OF ART 2400 THIRD AVENUE SOUTH JULY 24OCT 31 612 8703131 THE NEWEST SMITHSONIAN INSTITUTION MUSEUM OPENS ITS DOORS ON JULY 30 HOUSED IN THE HISTORIC WASHINGTON CITY POST OFFICE BUILDING THE MUSEUM PROVIDES A LOOK AT POSTAL HISTORY AND THE WORLD'S LARGEST STAMP COLLECTION EDUCATIONAL AND INTERACTIVE EXHIBITIONS ILLUSTRATE THE IMPORTANCE OF THE NATION'S MAIL SYSTEM THIS YEAR'S EDITION OF THE ANNUAL CONCERT SERIES FEATURES 20THCENTURY LATIN AMERICAN MUSIC PRESENTED IN CONJUNCTION WITH THE MUSEUM OF MODERN ART'S LATIN AMERICAN ARTISTS OF THE TWENTIETH CENTURY EXHIBITION THE MUSICIANS TRAINED AT JUILLIARD PERFORM THE WORK OF COMPOSERS FROM A DOZEN LATIN AMERICAN COUNTRIES THE CONCERTS PART OF NINE WEEKENDS OF FREE EVENING HOURS AT MOMA THROUGH AUG 28 ARE HELD IN THE MUSEUM'S SCULPTURE GARDEN HOME TO SEVERAL MODERN MASTERPIECES BY ARTISTS SUCH AS MATISSE HENRY MOORE PICASSO AND RODIN THE ABBY ALDRICH ROCKEFELLER SCULPTURE GARDEN 14 WEST 54TH ST FRIDAYS AND SATURDAYS AT 730 PM 212 7089757 NEW YORK STATE THEATER LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS JULY 28NOV 21 212 8705570 THE COMPANY CONCLUDES ITS 20THANNIVERSARY SEASON WITH THE WORLD PREMIERE OF MRS DALLOWAY LIBBY LARSON AND BONNIE GRICE'S ADAPTATION OF THE EXPERIMENTAL 1925 NOVEL OF THE SAME NAME BY VIRGINIA WOOLF MARY ELIZABETH POORE SINGS THE TITLE ROLE AND GARY BRIGGLE PORTRAYS THE MADMAN SEPTIMUS WARREN SMITH MICHAEL MCCONNELL THE COMPANY'S EXECUTIVE DIRECTOR DIRECTS KULAS HALL AT THE CLEVELAND INSTITUTE OF MUSIC UNIVERSITY CIRCLE JULY 22 24 27 29 30 AND 31 216 3212910 9307200167 930702 SPEAKING OF BUSINESS THE PAY GAP NARROWS SLOWLY BY LINDLEY H CLARK JR YOU MAY FIND THIS HARD TO BELIEVE BUT IN TERMS OF PAY WOMEN LAG FURTHER BEHIND MEN IN THE US THAN IN MOST INDUSTRIAL COUNTRIES WITH ALL THAT WE'VE HEARD ABOUT EQUAL JOB OPPORTUNITY AND EQUAL PAY FOR WOMEN IN THIS COUNTRY IT HARDLY SEEMS POSSIBLE BUT THAT'S THE WAY THINGS ARE FRANCINE BLAU AND LAWRENCE KAHN ECONOMISTS AT THE UNIVERSITY OF ILLINOIS INSTITUTE OF INDUSTRIAL AND LABOR RELATIONS AT CHAMPAIGN SURVEYED 10 INDUSTRIAL COUNTRIES IN TERMS OF FEMALEMALE PAY EQUALITY THE ONLY COUNTRY THAT CONSISTENTLY DID WORSE THAN THE US WAS JAPAN WHERE WOMEN ON AVERAGE EARNED ABOUT HALF OF WHAT MEN EARNED TO GIVE THE US ITS DUE WOMEN HAVE BEEN EDGING UPWARD IN 1971 AMERICAN WOMEN WORKING FULL TIME EARNED 58 OF THE WEEKLY WAGE OF MEN BY 1981 THE FIGURE HAD MOVED UP TO 62 AND BY 1988 THE LATEST DATE THAT MS BLAU AND MR KAHN HAVE STATISTICS FOR TO 69 OF THE MEN'S WAGE BUT IN NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER NO 4224 THE ILLINOIS AUTHORS REPORT THAT IN THE LATE 1980S THE RATIO OF FEMALETOMALE WEEKLY WAGES RANGED FROM 80 TO 90 IN AUSTRALIA DENMARK FRANCE NEW ZEALAND NORWAY AND SWEDEN OTHER COUNTRIES IN WESTERN EUROPE AND THE US HAD RATIOS OF ROUGHLY 65 TO 75 WITH THE US ON THE LOW SIDE AMERICA'S LOW RANK IS STARTLING FOR A NUMBER OF REASONS TO BEGIN WITH AMERICAN WOMEN HAVE A HIGHER LABOR FORCE PARTICIPATION RATE THAN ANY OTHER INDUSTRIAL NATION EXCEPT SWEDEN THEN TOO AMERICAN WOMEN ARE MORE LIKELY TO WORK FULL TIME AND LESS LIKELY TO BE SEGREGATED INTO TRADITIONALLY FEMALE OCCUPATIONS ONE FACTOR THAT AFFECTS WOMEN IN ALL COUNTRIES IS THAT THEY'RE MORE LIKELY THAN MEN TO QUIT THEIR JOBS TO RAISE CHILDREN SO THEY FALL BEHIND MEN IN YEARS OF WORK EXPERIENCE TRAINING AND PROMOTIONS BUT WHY DO AMERICAN WOMEN DO SO MUCH LESS WELL THAN THE LADIES FROM OTHER LANDS ONE REASON IS THAT THE WAYS WAGES ARE SET IN THE US OPEN THE WAY TO LARGE DISPARITIES AMONG WORKERS AND CERTAINLY BETWEEN MEN AND WOMEN US UNIONIZATION RATES ARE 205 FOR MALE WORKERS AND 125 FOR FEMALE WORKERS MUCH LOWER THAN THE RATES IN OTHER MAJOR INDUSTRIALIZED COUNTRIES IN SWEDEN AND NORWAY FOR INSTANCE THE GREAT MAJORITY OF THE WORKERS ARE UNIONIZED THE MAJOR UNION FEDERATION SIGNS A WAGE AGREEMENT WITH AN EMPLOYER FEDERATION COVERING A GREAT MAJORITY OF THE WORKERS THESE AGREEMENTS LEVEL THE WAGE STRUCTURE TO A CONSIDERABLE DEGREE SWEDEN HAS ONE OF THE SMALLEST GAPS BETWEEN FEMALEMALE PAY WHILE THE US HAS ONE OF THE LARGEST BUT THE US GAP WOULD COME CLOSE TO MATCHING THE SWEDISH GAP IF WAGES IN THE US WERE SMOOTHED BY OMNIPRESENT UNIONS AS THEY ARE IN SWEDEN THERE ARE OTHER WAYS TO CENTRALIZE WAGESETTING GOVERNMENT CAN DO IT IN AUSTRALIA FOR EXAMPLE MINIMUM WAGES FOR VARIOUS OCCUPATIONS ARE SET BY GOVERNMENT TRIBUNALS IN MOST AUSTRIAN CASES COLLECTIVE BARGAINING AGREEMENTS COVER AN ENTIRE INDUSTRY OR GROUP OF INDUSTRIES WHILE WAGESETTING IN THE UNITED KINGDOM IS LESS CENTRALIZED THAN IT IS IN MOST OF EUROPE IT IS MORE CENTRALIZED THAN IT IS IN THE US THOUGH THE AUTHORS DON'T GO INTO THIS IT'S APPARENT THAT WORKERS HAVE CHOICES IN MOST INDUSTRIAL COUNTRIES THEY OFTEN CAN LET UNIONS OR GOVERNMENTS DECIDE THEIR WAGES IF THEY'RE WOMEN THIS MAY GIVE THEM WAGES CLOSER TO THOSE PAID TO MEN ON THE OTHER HAND IN THE US MOST WORKERS NEGOTIATE FOR WAGES ON THEIR OWN SOMEHOW OR OTHER I DON'T THINK THE ANSWER IS TO HAVE CONGRESS PASS A FEW LAWS I TAKE HEART FROM THE FACT THAT THE WOMEN HAVE BEEN GAINING ON THE MEN IN THE PAST DECADE WHAT WE HAVE HERE AMONG EMPLOYERS MALE EMPLOYERS MAY BE AN INVASION OF COMMON SENSE SEE RELATED LETTER LETTERS TO THE EDITOR SOMETIMES GOOD SENSE MUST BE LEGISLATED WSJ JULY 20 1993 9307020009 YY93 MM07 9307200166 930720 WHO'S NEWS NBD BANCORP NBD BANCORP DETROIT ROBERT C STEMPEL WHO RESIGNED AS CHAIRMAN OF GENERAL MOTORS CORP IN NOVEMBER WAS ELECTED A DIRECTOR OF THIS BANK HOLDING COMPANY MR STEMPEL 60 YEARS OLD FORMERLY SERVED AS AN NBD DIRECTOR FROM 1989 THROUGH 1991 NBD'S CHAIRMAN CHARLES T FISHER III HAS BEEN A GM DIRECTOR FOR MORE THAN 20 YEARS 9307200165 930720 WHO'S NEWS ODETICS INC ODETICS INC ANAHEIM CALIF KEVIN DALY WAS ELECTED A DIRECTOR OF THIS MAKER OF INFORMATION AUTOMATION PRODUCTS INCREASING BOARD MEMBERSHIP TO EIGHT DR DALY 49 YEARS OLD IS PRESIDENT OF THE COMPANY'S ATL PRODUCTS SUBSIDIARY 9307200164 930720 WHO'S NEWS SEAGRAM CO SEAGRAM CO MONTREAL GLENN WILEN 40 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT FINANCE FOR THE SEAGRAM BEVERAGE GROUP UNIT OF THIS MAKER OF DISTILLED SPIRITS AND WINES MR WILEN WAS VICE PRESIDENT OF FINANCIAL PLANNING FOR THE COMPANY'S HOUSE OF SEAGRAM UNIT THE US DIVISION OF THE SEAGRAM SPIRITS & WINE GROUP 9307200163 930720 WHO'S NEWS HOME DEPOT INC HOME DEPOT INC ATLANTA LEONARD KAPILOFF FORMERLY BUILDING MATERIALS MERCHANDISER FOR THIS RETAILER'S SOUTHERN DIVISION WAS NAMED TO THE NEW POST OF VICE PRESIDENT MERCHANDISING FOR THE CANADIAN MARKET MR KAPILOFF IS 42 YEARS OLD 9307200162 930720 WHO'S NEWS CONSOLIDATED NEVADA GOLDFIELDS CORP CONSOLIDATED NEVADA GOLDFIELDS CORP DENVER GEOFFREY HOYL FORMERLY PRESIDENT OF CENTRAL ALASKA GOLD CO WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS MINING COMPANY MR HOYL 41 YEARS OLD SUCCEEDS PETER BOJTOS WHO RESIGNED FOLLOWING A FINANCIAL RESTRUCTURING OF THE COMPANY 9307200161 930720 WHO'S NEWS NEW ENGLAND INVESTMENT COS NEW ENGLAND INVESTMENT COS BOSTON THIS INVESTMENT MANAGEMENT HOLDING COMPANY NAMED ROBERT L GHEGAN TO THE NEW POSITION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS RETIREMENT SERVICES COMPANY A JOINT VENTURE WITH NEW ENGLAND MUTUAL LIFE INSURANCE CO MR GHEGAN 46 YEARS OLD HAD BEEN VICE PRESIDENT GROUP FINANCIAL SERVICES WITH MERRILL LYNCH & CO IN SOMERSET NJ 9307200160 930720 WHO'S NEWS PERRIGO CO PERRIGO CO ALLEGAN MICH MARK OLESNAVAGE WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF OVERTHECOUNTER PHARMACEUTICAL OPERATIONS FOR THIS DRUG MAKER MR OLESNAVAGE 39 WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING AND NOW ASSUMES NEW RESPONSIBILITIES FOR RESEARCH AND DEVELOPMENT QUALITY CONTROL AND ASSURANCE AND HUMAN RESOURCES 9307200159 930720 WHO'S NEWS ORTHOLOGIC CORP ORTHOLOGIC CORP PHOENIX AUGUSTUS A WHITE III WAS ELECTED A DIRECTOR INCREASING THE BOARD TO SEVEN DR WHITE 57 YEARS OLD IS A PROFESSOR OF ORTHOPEDIC SURGERY AT HARVARD MEDICAL SCHOOL AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND HARVARD JOINT PROGRAM DIVISION OF HEALTH SCIENCE AND TECHNOLOGY ORTHOLOGIC MAKES ADVANCED ORTHOPEDIC TRAUMA PRODUCTS THAT ENHANCE THE HEALING OF MUSCULOSKELETAL TISSUES 9307200158 930720 GE GETS CONTRACT OF 12 BILLION TO BUILD POWER PLANT IN JAPAN FAIRFIELD CONN GENERAL ELECTRIC CO SAID IT RECEIVED A 12 BILLION CONTRACT TO BUILD WHAT IT CALLED THE WORLD'S LARGEST POWER GENERATION PLANT FOR TOKYO ELECTRIC POWER CO GE CALLED THE CONTRACT FOR THE NATURAL GASFIRED PLANT ONE OF THE LARGEST IT HAS EVER RECEIVED AND SAID IT HIGHLIGHTS THE TWO COMPANIES' CONTRIBUTIONS TO REDUCING THE US TRADE DEFICIT WITH JAPAN IT FOLLOWS A 1 BILLION CONTRACT AWARDED TO GE BY TOKYO ELECTRIC IN 1991 FOR A NUCLEAR POWER PLANT TOKYO ELECTRIC HAS PLAYED A MAJOR ROLE WITHIN JAPAN TO IMPROVE TRADE RELATIONS WITH THE US AND TO ENCOURAGE POSITIVE CHANGES IN JAPAN'S PROCUREMENT POLICIES SAID DELBERT WILLIAMSON PRESIDENT OF GE'S INDUSTRIAL & POWER SYSTEMS UNIT HE SAID THE POWER PLANT WHICH WILL BE IN YOKOHAMA IS A DRAMATIC EXAMPLE OF GE'S POSITIVE IMPACT ON THE BALANCE OF TRADE GE SAID THE ORDER FOR THE 28 MILLIONKILOWATT COMBINEDCYCLE POWER PLANT SOLIDIFIES ITS TECHNOLOGICAL POSITION IN ADVANCED POWER GENERATION PRODUCTS IN A COMBINED CYCLE PLANT POWER IS PRODUCED BY GAS TURBINES FROM WHICH EXHAUST GASES GENERATE STEAM TO DRIVE STEAM TURBINES GE SAID TOKYO ELECTRIC HAD BEEN EVALUATING COMBINEDCYCLE TECHNOLOGIES OF MAJOR SUPPLIERS FOR SEVERAL YEARS GREGORY STARHEIM MANAGER OF MARKET DEVELOPMENT FOR COMBINED CYCLES AT GE INDUSTRIAL & POWER SYSTEMS SAID THE COMBINEDCYCLE TECHNOLOGY HAS BEEN GAINING INCREASING FAVOR IN RECENT YEARS IN COMPARISON WITH COAL OR JUST NATURAL GAS OR NUCLEAR SYSTEMS IT HAS BECOME A VERY PROVEN AND EFFICIENT WAY OF BURNING NATURAL GAS FOR POWER GENERATION HE SAID THE YOKOHAMA PLANT IS SCHEDULED TO BEGIN OPERATION IN THE MID1990S IT WILL INCLUDE EIGHT ADVANCED COMBINEDCYCLE UNITS GE SAID IT WILL BUILD THE GAS TURBINES AT ITS GREENVILLE SC PLANT AND THE STEAM TURBINES AND GENERATORS AT ITS SCHENECTADY NY FACILITY GE SAID CONSTRUCTION OF THE NUCLEAR POWER FACILITY COVERED BY THE 1991 CONTRACT IS PROCEEDING ON SCHEDULE 9307200157 930720 WHO'S NEWS KRUG INTERNATIONAL CORP KRUG INTERNATIONAL CORP DAYTON OHIOTHIS AEROSPACE AND MARINEEQUIPMENT CONCERN NAMED THREE DIRECTORS REX M FLEET 61 YEARS OLD A FORMER NCR CORP EXECUTIVE T WAYNE HOLT 66 A FORMER KRUG EXECUTIVE AND WE GREENHALGH 63 A FORMER EXECUTIVE AND CONSULTANT TO KRUG THE APPOINTMENTS EXPAND THE BOARD'S SIZE TO EIGHT FROM SIX AND FILL A POSITION VACATED BY LEO LADEHOFF CHIEF EXECUTIVE OF AMCAST INDUSTRIAL CORP 9307200156 930720 WHO'S NEWS DANA CORP DANA CORP TOLEDO OHIO GLEN H HINER 58 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OWENSCORNING FIBERGLAS CORP WAS ELECTED TO THIS AUTO PARTS MAKER'S BOARD FILLING A VACANCY 9307200155 930720 WHO'S NEWS CLARIDGE CHIEF BYBEE IS NAMED PRESIDENT OF UNITED GAMING INC LAS VEGAS UNITED GAMING INC SAID SHANNON L BYBEE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING CAROLE A CARTER WHO STEPPED DOWN MS CARTER RESIGNED BY MUTUAL AGREEMENT WITH ALFRED H WILMS CHAIRMAN AND CHIEF EXECUTIVE OFFICER A SENIOR EXECUTIVE SAID MS CARTER 42 YEARS OLD DIDN'T RETURN A MESSAGE LEFT WITH HER FORMER SECRETARY SINCE 1989 MR BYBEE HAS BEEN CHIEF EXECUTIVE OFFICER OF CLARIDGE HOTEL & CASINO CORP IN ATLANTIC CITY NJ THE 54YEAROLD ATTORNEY ALSO HAS HELD VARIOUS POSTS AT GOLDEN NUGGET INC BEFORE IT CHANGED ITS NAME TO MIRAGE RESORTS INC 9307200154 930720 WHO'S NEWS DIED JOHN R CUNIN 68 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF BEARINGS INC SUNDAY IN CLEVELAND OF CANCER 9307200153 930720 WHO'S NEWS HELIX TECHNOLOGY CORP HELIX TECHNOLOGY CORP MANSFIELD MASS R SCHORR BERMAN PRESIDENT OF MDT ADVISERS INC WAS NAMED A DIRECTOR SUCCEEDING JEAN E DE VALPINE CHAIRMAN OF MDT WHO RESIGNED AS A DIRECTOR OF THIS MAKER OF CRYOGENIC AND VACUUM EQUIPMENT 9307200152 930720 AMERICAN WATER WORKS VENTURE VOORHEES NJ AMERICAN WATER WORKS CO AND THE BRITISH WATER UTILITY COMPANY ANGLIAN WATER PLC FORMED A JOINT VENTURE TO FOCUS ON PRIVATIZATION OF MUNICIPAL WASTEWATER SERVICES IN THE US AMERICAN WATER WORKS SAID THE VENTURE AMERICAN ANGLICAN ENVIRONMENTAL TECHNOLOGIES WOULD SEEK OPERATION AND MAINTENANCE CONTRACTS PUBLIC/PRIVATE PARTNERSHIPS AND OWNERSHIP OPPORTUNITIES AS THE TREND TOWARD PRIVATIZATION GROWS AMONG US WASTEWATER SYSTEMS AMERICAN WATER WORKS OWNS OVER 125 WATER UTILITIES IN 20 STATES ANGLIAN OPERATES 1078 WASTEWATER TREATMENT PLANTS AND 169 WATER TREATMENT FACILITIES IN EASTERN ENGLAND AND HAS ANNUAL REVENUE OF 883 MILLION 9307200151 930720 ENTERPRISE LANDLORDS GIVE A HELPING HAND INSTEAD OF THE THUMB SMALL BUSINESSES BEHIND IN THE RENT GET AID IN HOW TO BECOME PROFITABLE BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL SOME STRUGGLING SMALLBUSINESS OWNERS ARE GETTING HELP FROM AN UNLIKELY SOURCE THEIR LANDLORDS SUCH WAS THE CASE FOR COUNTRY HAM CO A RESTAURANT AND FOOD STORE IN RANCHO CUCAMONGA CALIF BY LATE LAST YEAR THE COMPANY WAS IN FINANCIAL TROUBLE AND SEVERAL MONTHS BEHIND IN ITS RENT TO LEWIS HOMES MANAGEMENT CORP OPERATOR OF THE MALL WHERE COUNTRY HAM IS LOCATED INSTEAD OF EVICTING COUNTRY HAM LEWIS HOMES PAID ALLIANCE MANAGEMENT GROUP INC A SMALLBUSINESS CONSULTING FIRM TO REVIEW AND HELP REORGANIZE THE RESTAURANT'S BUSINESS COUNTRY HAM REVISED ITS MENU NEGOTIATED LOWER PRICES FROM SUPPLIERS AND REFOCUSED ITS MARKETING THE STORE IS NOW PROFITABLE AND HAS PRETTY MUCH CAUGHT UP ON RENT ARREARS WHICH ONCE TOTALED 30000 SAYS RICHARD JORDAN COUNTRY HAM'S OWNER WE WOULDN'T BE HERE IF IT WEREN'T FOR LEWIS HOMES THEY COULD HAVE JUST KICKED US OUT NOT SO LONG AGO LEWIS HOMES LIKE ALMOST ANY OTHER COMMERCIAL LANDLORD MIGHT HAVE DONE JUST THAT BUT IN THE CURRENT ECONOMIC CLIMATE A SHORTAGE OF REPLACEMENT TENANTS IS FORCING PROPERTY OWNERS TO REASSESS THEIR POLICIES OFTEN THEY ARE CONCLUDING THAT ACCOMMODATION IS MORE PROFITABLE THAN EVICTION YOU THINK TWO OR THREE TIMES BEFORE YOU KICK A TENANT OUT SAYS HAROLD CARLSON PRESIDENT OF DK/CARLSON ASSOCIATES THE RETAIL PROPERTY UNIT OF CHICAGOBASED DRAPER & KRAMER INC LANDLORDS HAVE LONG GIVEN SOME HELP TO TENANTS PARTICULARLY IN RETAIL CENTERS WHERE RENTS ARE GENERALLY TIED TO SALES VOLUME MANY LANDLORDS OFFER SEMINARS AND VIDEOS WITH MARKETING AND MERCHANDISING TIPS HOMART DEVELOPMENT CO A CHICAGO MALL DEVELOPER HAS COME UP WITH A COMPUTER PROGRAM TO TRACK TENANT SALES ON A DAILY INSTEAD OF MONTHLY BASIS THEREBY IDENTIFYING PROBLEMS MORE QUICKLY SAYS JOE LARSON HOMART'S SENIOR VICE PRESIDENT FOR ASSET MANAGEMENT TRADITIONALLY TOO FINANCIALLY STRAPPED TENANTS HAVE SOUGHT RENT CONCESSIONS AND THEY STILL DO BUT THESE DAYS REALESTATE INDUSTRY OFFICIALS SAY LANDLORDS INCREASINGLY ARE LOOKING FOR ALTERNATIVES BESIDES ROBBING LANDLORDS OF REVENUE RENT CONCESSIONS CAN BACKFIRE BY FAILING TO ADDRESS THE UNDERLYING CAUSES OF A TENANT'S PROBLEMS SAYS STEVEN DORMAN DIRECTOR OF PROPERTY MANAGEMENT AT LEWIS HOMES IN THOSE CASES A RENT CONCESSION SIMPLY LETS A BUSINESS STAY OPEN LONGER THAN IT SHOULD HE SAYS SO LANDLORDS INCREASINGLY HIRE OUTSIDE CONSULTANTS TO COACH THEIR TENANTS ON RUNNING THEIR BUSINESSES THOUGH NOBODY KEEPS STATISTICS ON THE PRACTICE IT IS BECOMING FAIRLY WIDESPREAD WHEREAS IT WOULD HAVE BEEN ALMOST UNHEARD OF IN THE 1980S SAYS A SPOKESMAN FOR THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS A NEW YORK CITY TRADE GROUP MUCH OF THIS CONSULTING HELP IS FOCUSED ON SMALL BUSINESSES HOLDING ONTO THESE FIRMS IN THE CURRENT SLUGGISH ECONOMY IS A TOUGH CHALLENGE SAYS MICHAEL WELTON PRESIDENT OF SIERRA PACIFIC PROPERTIES INC A PITTSBURG CALIF REALESTATE FIRM BESIDES OUTSIDE CONSULTANTS MR WELTON SOMETIMES SENDS SIERRA PACIFIC OFFICIALS IN TO OFFER ASSISTANCE THEY ADVISED ONE SMALL ADVERTISING FIRM TO CUT THE SIZE OF ITS OFFICE BY TWOTHIRDS AND TO CONTRACT OUT SOME OF ITS WORK OVERHEAD IS WHAT IS KILLING THESE SMALL BUSINESSES SAYS MR WELTON DOWNEY CAMERA IN DOWNEY CALIF SAYS IT HAD SEEN ITS ANNUAL SALES PLUMMET IN RECENT YEARS BY MORE THAN A THIRD TO ABOUT 500000 RECENTLY ITS LANDLORD HUGHES/PURCELL SUGGESTED THAT DOWNEY HIRE ALLIANCE AND AGREED TO PAY FOR PART OF THE 3000 CONSULTING TAB UNTIL THE RECENT RECESSION I WOULD HAVE NEVER EVEN THOUGHT OF HIRING A MANAGEMENT CONSULTANT SAYS BILL HUGHES COOWNER OF THE NEWPORT BEACH CALIF SHOPPINGCENTER DEVELOPER DAVID ROGERS OWNER OF DOWNEY CAMERA SAYS SOME OF THE CONSULTANT'S IDEAS SUCH AS A PHOTO CLUB THAT GIVES DISCOUNTS TO REGULAR CUSTOMERS HAVE HELPED TO BOOST BUSINESS OTHERS SUCH AS STOCKING SOME LOWERPRICED CAMERAS HAVE YET TO HAVE MUCH IMPACT HE SAYS STILL OTHERS SUCH AS DOING WEDDING PHOTOGRAPHY MR ROGERS REJECTED DESPITE THE HELP MR ROGERS STILL ISN'T OPTIMISTIC ABOUT HIS STORE'S NEARTERM OUTLOOK BECAUSE OF THE CONTINUED SOUTHERN CALIFORNIA RECESSION INDEED LANDLORDS AND OTHERS SAY CONSULTANTS ARE HARDLY A PANACEA FOR ONE THING THEY DON'T ALWAYS COME UP WITH THE RIGHT ANSWERS EVEN IF THEY DO SMALLBUSINESS OWNERS DON'T ALWAYS LISTEN MOMANDPOP FIRMS TEND TO BE SKEPTICAL OF OUTSIDE ADVICE SAYS MR HUGHES BUT ONE COMPANY THAT HAS GAINED FROM OUTSIDE HELP IS COUNTRY HAM THE 58YEAROLD MR JORDAN A RETIRED RAILROAD WORKER STARTED THE OPERATION ABOUT TWO YEARS AGO THOUGH COUNTRY HAM'S BUSINESS WAS GROWING IT WAS ALSO CONSISTENTLY SHOWING LOSSES SAYS MR JORDAN LATE LAST YEAR LEWIS HOMES SUGGESTED THAT MR JORDAN TALK TO ALLIANCE MANAGEMENT AS COUNTRY HAM DIDN'T HAVE SPARE CASH LEWIS HOMES OFFERED TO TAKE THE CONSULTING FIRM'S INITIAL FEE OF 2000 OFF THE RESTAURANT'S BACKRENT TAB THAT WAY COUNTRY HAM COULD HIRE ALLIANCE DIRECTLY AND AVOID POTENTIAL CONFLICTS OVER WHO EXACTLY THE CONSULTANT WAS WORKING FOR EVEN SO MR JORDAN SAYS HE HESITATED IN THE PAST TWO YEARS I'VE PAID OUT A LOT TO PEOPLE SUCH AS ACCOUNTANTS WHO DIDN'T GIVE A LOT BACK SAYS MR JORDAN BUT HE SAYS HE FINALLY AGREED AFTER LEWIS HOMES MADE IT CLEAR THAT THE PROBABLE ALTERNATIVE WAS EVICTION ALLIANCE COFOUNDERS TOM THOMPSON AND GAIL PETERSON REVIEWED COUNTRY HAM'S OPERATIONS AND FIGURED OUT AMONG OTHER THINGS THAT THE RESTAURANT WAS LOSING MONEY ON ITS BASIC SIXOUNCE HAM SANDWICH SOLD FOR 465 THAT WAS ALSO TOO MUCH MEAT FOR MANY CUSTOMERS WHO WOULD END UP DISCARDING PORTIONS OF THEIR SANDWICHES SAYS MR JORDAN SO THE SANDWICH WAS CUT TO FOUR OUNCES AND THE PRICE KEPT THE SAME AND NOW WE SHAVE THE MEAT INSTEAD OF MORE THICKLY SLICING IT THAT PUFFS IT UP AND MAKES IT LOOK LIKE MORE SAYS MR JORDAN THERE WERE SIMILAR PRICE OR PORTION CHANGES IN OTHER PARTS OF THE MENU AND THE STORE'S HAM VENDOR WAS PERSUADED TO SHAVE A NICKEL A POUND OFF ITS PRICE FOOD COSTS ARE NOW DOWN TO ABOUT 38 OF REVENUE FROM OVER 50 SAYS MR JORDAN WITH ALLIANCE'S HELP COUNTRY HAM HAS RESCHEDULED ITS 13 PARTTIME EMPLOYEES' WORK HOURS TO REDUCE PERIODS OF OVERSTAFFING THE CONSULTANTS HELPED TO DESIGN AND PROMOTE A BREAKFAST MENU FOR COUNTRY HAM THAT HAS HELPED TO INCREASE REVENUE LIKEWISE THE RESTAURANT IS TRYING TO MARKET MORE AGGRESSIVELY IN ITS LOCAL AREA SUCH AS TRYING TO WIN BREAKFAST BUSINESS FROM A LOCAL TRUCK STOP REVENUE LAST YEAR WAS ABOUT 500000 AND THE COMPANY HOPES TO REACH 650000 THIS YEAR HE ADDS WITH COUNTRY HAM IN THE BLACK THE STORE IS NEGOTIATING ON A MATTER MORE LIKELY TO PLEASE ITS LANDLORD IT WANTS TO EXPAND ITS 2400SQUAREFOOT STORE BY 900 SQUARE FEET WE NEED THE ROOM SAYS MR JORDAN 9307200150 930720 TECHNOLOGY SEXTANTS IN SPACE CAN CHANGE THE WORLD BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL THE ANCIENT SCIENCE OF NAVIGATION IS POISED TO TAKE A GREAT LEAP FORWARD THANKS TO THE JUNE LAUNCH OF THE LAST OF 24 DEFENSE DEPARTMENT SATELLITES THAT COMPRISE THE SOCALLED GLOBAL POSITIONING SYSTEM SURVEYORS AND SAILORS AREN'T THROWING AWAY THEIR SEXTANTS JUST YET AND RADAR REMAINS STANDARD EQUIPMENT FOR JETLINERS AND SHIPS BUT GPS OFFERS IMMEDIATE AND TREMENDOUS ECONOMIC APPLICATIONS FOR THE PRIVATE SECTOR ASSERTS TRANSPORTATION SECRETARY FEDERICO PENA NOW THAT THE CONSTELLATION IS COMPLETE AND THE SATELLITE RADIO SIGNALS ARE AVAILABLE 24 HOURS A DAY WORLDWIDE GPS'S ROLE AS A SUCCESSOR TO EARLIER NAVIGATION SYSTEMS SUCH AS LORAN AND SATNAV SEEMS ASSURED EXPERTS SAY GPS HAS OBVIOUS ADVANTAGES OVER THE EARLIER SYSTEMS IT'S WORLDWIDE THREEDIMENSIONAL PROVIDING LATITUDE LONGITUDE AND ALTITUDE EASY TO USE AND FREE TO EVERYONE IN A FIRST STEP TOWARD WIDER GPS USE IN COMMERCIAL AVIATION THE FEDERAL AVIATION ADMINISTRATION LAST MONTH APPROVED CERTAIN LANDING PROCEDURES TO BE GUIDED BY GPS CONTINENTAL AIRLINES IS THE GUINEA PIG FOR THAT TEST OTHER LARGE US AIRLINES ALSO ARE EXPERIMENTING WITH GPS IN OTHER PHASES OF FLIGHT AND BOEING CO IS MAKING GPS RECEIVERS STANDARD EQUIPMENT ON ITS NEW 777 MODEL MOREOVER MR PENA SAYS THE TRANSPORTATION DEPARTMENT HAS BEGUN CHANGING ITS PROCUREMENT AGENDA FOR THE CONTINUING NATIONAL AIRTRAFFICCONTROLSYSTEM UPGRADE TO REFLECT THE WIDER AVAILABILITY OF GPS AND ITS FUTURE ROLE AVIONICS SUPPLIERS SUCH AS HONEYWELL INC ALREADY HAVE DEVELOPED FLIGHTMANAGEMENT COMPUTERS THAT INTERACT WITH GPS AND THE INTERNATIONAL CIVIL AVIATION ORGANIZATION IS CONSIDERING IT AS A NEW WORLD STANDARD GPS HAS ALREADY CHANGED THE WORLD OR AT LEAST THE MAPS OF PART OF IT ACCORDING TO DAVE DOYLE A SENIOR GEODESIST FOR THE US GEODETIC SURVEY LATITUDE AND LONGITUDE MARKINGS FOR NORTH AMERICA LITERALLY WERE REDRAWN ONCE THE AGENCY HAD ACCESS TO GPS IT WAS REDEFINED WITH NEW LEVELS OF ACCURACY MOST SURVEYORS WOULD NEVER APPROACH HE SAYS NONE OF WHICH WAS THE MAIN OBJECTIVE WHEN THE DEFENSE DEPARTMENT LAUNCHED THE FIRST SATELLITE IN 1978 GPS WAS AND IS PRIMARILY INTENDED FOR MILITARY USE EVEN THOUGH IT WASN'T COMPLETED THEN GPS DURING THE GULF WAR EARNED ITS STRIPES AND LOTS OF PUBLICITY BY HELPING TROOPS FIND THEIR WAY IN THE REGION'S FEATURELESS SANDS WITH ONLY HANDHELD RECEIVERS HOWEVER THE PENTAGON DIDN'T IGNORE CIVILIANS INDEED THE SIGNAL IS AVAILABLE FREE TO ANYONE IN THE WORLD WHO BUYS A SPECIAL GPS RECEIVER MANY COMPANIES MAKE SUCH RECEIVERS AND PRICES HAVE FALLEN SIGNIFICANTLY IN THE PAST FEW YEARS HOW GPS WORKS IS SIMPLE GEOMETRY WITH A HIGHTECH SPIN FROM THEIR VERY STABLE ORBITS 10900 MILES ABOVE THE EARTH THE SATELLITES BROADCAST IDENTICAL RADIO SIGNALS SIMULTANEOUSLY RECEIVERS ON EARTH MEASURE HOW LONG IT TAKES THE RADIO SIGNALS FROM AS MANY AS FOUR DIFFERENT SATELLITES TO ARRIVE THEREBY MEASURING HOW FAR AWAY THE SATELLITES ARE BY READING THE LOCATIONS OF SEVERAL SATELLITES AND TRIANGULATING THEM THE RECEIVER CAN FIGURE OUT WHERE IT IS ON THE PLANET THERE ARE SOME ROADBLOCKS TO GPS'S WIDESPREAD USE IN TRANSPORTATION HOWEVER THE MILITARY RECEIVES A SPECIALLY CODED GPS SIGNAL THAT CAN PLOT A LOCATION IN THREE DIMENSIONS TO WITHIN FEET FOR SECURITY REASONS CIVILIAN USERS RECEIVE A DEGRADED SIGNAL THAT GUARANTEES ACCURACY ONLY TO WITHIN 300 FEET AND THAT IS NOT CLOSE ENOUGH FOR AN AIRLINER A SHIP OR EVEN A CAR WITH A NAVIGATION SYSTEM TO OPERATE SAFELY IN CONFINED SPACES UNTIL NOW MOST COMMERCIAL USERS HAVE DEALT WITH THE PROBLEM BY STATIONING A RADIO BEACON AND HAVING ITS KNOWN POSITION CORRECT THE DEGRADED GPS READINGS BUT IMPLEMENTING THIS SYSTEM CALLED DIFFERENTIAL GPS IS GOING TO BE MORE DIFFICULT FOR AIRLINES AND OTHER BIG USERS THAT NEED PRECISE INFORMATION EXPERTS SAY HENCE TRANSPORTATION SECRETARY PENA HAS A TASK FORCE WORKING WITH THE MILITARY TO SEE HOW THE PURER SIGNAL COULD BE UNLEASHED FOR ALL USERS WITHOUT COMPROMISING DEFENSE NEEDS HE SAYS HE ALSO IS WORKING TO HAVE THE SYSTEM PUT UNDER THE JOINT ADMINISTRATION OF DEFENSE AND TRANSPORTATION A MOVE THAT COULD MOLLIFY POTENTIAL OVERSEAS USERS WHO WORRY THAT THE US MILITARY MIGHT TERMINATE THE SIGNALS IN AN EMERGENCY ANOTHER POTENTIAL PROBLEM IS HOW TO KNOW WHEN THE SYSTEM ISN'T WORKING ACCORDING TO ONE COAST GUARD OFFICIAL THERE CURRENTLY IS NO WAY FOR CIVILIANS TO MONITOR THE INTEGRITY OF THE GPS SIGNALS THERE ARE OTHER ISSUES AS WELL IN AVIATION GPS WOULD HAVE TO BE INTRODUCED TO WORK IN TANDEM WITH OTHER NAVIGATIONAL AIDS SHIPPING COMPANIES SAY EVEN THE MILITARY VERSION OF GPS ISN'T ACCURATE ENOUGH TO GUIDE VESSELS IN HARBORS FOR AUTOMOTIVE USERS GPS WOULD BE IMPRACTICAL IN AREAS WHERE MOUNTAINS OR TALL BUILDINGS WOULD PREVENT THE SATELLITE SIGNALS FROM REACHING THE RECEIVERS BUT AS ITS POSSIBILITIES ARE HARNESSED AND AS REGULATIONS AND INFRASTRUCTURE CATCH UP WITH THE NEW TECHNOLOGY GPS WILL CHANGE THE WAYS MANY INDUSTRIES OPERATE AND ULTIMATELY INTRODUCE NEW LEVELS OF SAFETY AND EFFICIENCY FOR INSTANCE WITH SOCALLED KINEMATICSURVEYING TECHNIQUES WHICH CAN READ GPS LOCATION SIGNALS ON MOVING EQUIPMENT THE BLADES OF SAY A ROAD GRADER COULD BE GUIDED WITH ACCURACIES DOWN TO A CENTIMETER 9307200149 930720 TECHNOLOGY & ENVIRONMENT IN THE LAB NEW SUPERHARD MATERIAL RIVALS DIAMOND BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL CAN MAN CREATE A MATERIAL HARDER THAN DIAMOND THE HARDEST KNOWN TO EXIST UNTIL RECENTLY THAT HAS BEEN LIKE ASKING WHETHER THE SPEED OF LIGHT CAN BE EXCEEDED BUT TWO HARVARD UNIVERSITY RESEARCHERS SAY THEY HAVE ALREADY FABRICATED IN THEIR LABORATORY THE WORLD'S FIRST SOLID CARBONNITROGEN MATERIAL THAT IS NEARLY AS HARD AS DIAMOND AND POINTS THE WAY TO ONE THAT COULD BE HARDER MOREOVER SYNTHESIS OF THE NEW CARBONNITRIDE MATERIAL REPORTED IN THE LATEST ISSUE OF THE JOURNAL SCIENCE WAS NO HAPPY ACCIDENT RATHER IT WAS FIRST CONCEIVED IN THEORY AN INNOVATION IN MATERIALS SCIENCE AS STARTLING AS THE NEW MATERIAL ITSELF USUALLY SCIENTISTS MIX AND MATCH COMPOUNDS IN A HITANDMISS PROCESS UNTIL THEY COME UPON A MATERIAL WITH SOUGHTAFTER PROPERTIES THEN THEY CONSTRUCT THEORIES TO EXPLAIN ITS BEHAVIOR SCIENTISTS CHARLES LIEBER AND CHUNMING NIU SAY THAT IN HARVARD'S MATERIALS SCIENCE LABORATORY THEY HAVE FABRICATED FINE FILMS OF THEIR SHINY DARKBROWN MATERIAL WHICH OFFERS A WIDE RANGE OF APPLICATIONS FROM CUTTING TOOLS TO ELECTRONICS PRELIMINARY TESTS SHOW THE MATERIAL IS ALMOST AS HARD AS DIAMOND SAYS PROF LIEBER IF SOME IMPURITIES COULD BE REMOVED HE THINKS A PURE VERSION MIGHT SURPASS THE HARDNESS OF DIAMOND STANDING AMID AN APPARATUS OF LOOPING PIPES PUMPS MOTORS A NITROGEN TANK AND A STEEL VACUUM CHAMBER HE SAYS WE ARE MAKING GOOD PROGRESS THE WORK OF MESSRS LIEBER AND NIU WAS INSPIRED BY A THEORY OF MARVIN COHEN A PHYSICIST AT UNIVERSITY OF CALIFORNIA AT BERKELEY TO INVESTIGATE HOW HARD A MATERIAL HE COULD MAKE PROF COHEN USED A COMPUTER TO SIMULATE NEW ATOMIC STRUCTURES WHOSE PROPERTIES HE THEN PREDICTED THE CLOSER THE ATOMS IN HIS SIMULATED STRUCTURES THE SHORTER THE BOND BETWEEN THEM AND THE HARDER THE RESULTING MATERIAL HE CALCULATED TO FORM THE SHORTEST POSSIBLE BONDS I NEEDED TO DEAL WITH SMALL ATOMS HE SAYS SO HE LOOKED AT THE FIRST ROW OF THE PERIODIC TABLE AND HE CONCLUDED THAT THE BOND BETWEEN CARBON AND NITROGEN WOULD BE SHORTER THAN THE CARBONCARBON BOND IN DIAMOND IN A PAPER PUBLISHED IN 1989 PROF COHEN THEORIZED THAT SUCH HARDERTHANDIAMOND MATERIAL SHOULD CONSIST OF THREE ATOMS OF CARBON ATTACHED TO FOUR ATOMS OF NITROGEN AS THE BUILDING BLOCK SINCE THEN A NUMBER OF GROUPS OF RESEARCHERS HAVE TRIED TO SYNTHESIZE THE MATERIAL PROF COHEN SAYS MOST OF THEM RAN INTO PROBLEMS BECAUSE CARBON AND PURE NITROGEN ARE QUITE STABLE IN THEIR NATURAL STATES OF C A SINGLE CARBON ATOM AND N2 TWO ATOMS OF NITROGEN BONDED TOGETHER TO MAKE THEM REACTIVE NITROGEN WOULD HAVE TO BE SPLIT INTO ITS SINGLE ATOMS OR N BUT SPLITTING NATURALLY OCCURRING NITROGEN IS VERY DIFFICULT SINCE SINGLE NITROGEN ATOMS ARE HIGHLY REACTIVE AND RECOMBINE AS QUICKLY AS THE N2 MOLECULE IS BROKEN INTO ITS ELEMENTAL PARTS TO OVERCOME THAT PROBLEM THE EARLIER ATTEMPTS INVOLVED NITROGENCONTAINING COMPOUNDS RATHER THAN PURE NITROGEN AS THE SOURCE OF NITROGEN ATOMS THE PROBLEM WITH THOSE COMPOUNDS SAYS PROF LIEBER WAS THE PRESENCE OF OTHER ELEMENTS SUCH AS HYDROGEN THAT CAME ATTACHED WITH NITROGEN HYDROGEN FOR INSTANCE HAS A GREATER TENDENCY TO BOND WITH CARBON THAN NITROGEN HAS TOWARD CARBON YOU DON'T WANT ANYTHING COMPETING WITH NITROGEN HE SAYS SO THE CHALLENGE FOR PROF LIEBER AND MR NIU HIS POSTDOCTORAL STUDENT WAS MARSHALING INDIVIDUAL ATOMS OF NITROGEN AND CARBON WITHOUT THE PRESENCE OF OTHER INTERFERING ELEMENTS THEN PREVENTING RECOMBINATION OF THE NITROGEN ATOMS LONG ENOUGH FOR THEM TO REACT WITH THE CARBON ATOMS THE TEAM ACHIEVED THIS IN THE STAINLESSSTEEL VACUUM CHAMBER IN WHICH A PIECE OF GRAPHITE STANDS NEXT TO A FINE NOZZLE FOR DISCHARGING ATOMS OF NITROGEN ABOUT 16 INCHES FROM THEM IS A PIECE OF SILICON ON WHICH THE NEW MATERIAL IS DEPOSITED A POWERFUL LASER BEAM STRIKES THE PURE GRAPHITE VAPORIZING ITS SURFACE INTO CARBON ATOMS MEANWHILE PURE NITROGEN AND HELIUM GAS FROM TWO SEPARATE TANKS ARE FED INTO THE NOZZLE WHERE AN ELECTRICAL DISCHARGE SPLITS APART THE NITROGEN MOLECULES JUST BEFORE THEY ENTER THE VACUUM CHAMBER THE VACUUM HAS THE EFFECT OF INSTANTLY DISPERSING THE NITROGEN ATOMS PREVENTING MANY OF THEM FROM RECOMBINING BEFORE THEY REACT WITH CARBON HELIUM WHICH NEITHER SPLITS NOR REACTS WITH THE NITROGEN ATOMS HELPS KEEP THE NITROGEN ATOMS SEPARATE THE CARBON AND NITROGEN ATOMS THUS GET A CHANCE TO BOND WITH EACH OTHER AS THEY SETTLE ON THE SURFACE OF THE SILICON PROF LIEBER SAYS THAT STANDARD TECHNIQUES FOR DETERMINING CRYSTAL STRUCTURE HAVE ASCERTAINED THAT THE RESULTING MATERIAL INDEED IS THE CARBONNITRIDE FORM C3N4 PREDICTED BY PROF COHEN'S THEORY HE SAYS THE TEAM IS NOW TRYING TO SYNTHESIZE A PURE VERSION OF THE MATERIAL WHICH NOW CONTAINS CERTAIN NONATOMIC SPECIES OF CARBON THAT ALSO TEND TO REACT WITH ATOMIC NITROGEN TO GET ONLY THE ATOMIC CARBON TO SPLIT OFF THE GRAPHITE THE TEAM IS DEPLOYING MORE POWERFUL LASERS THE RESEARCHERS ARE ALSO TRYING TO CONTROL THE VELOCITY WITH WHICH NITROGEN ATOMS STRIKE THE CARBON ATOMS SO THAT MORE OF THEM BOND WITH CARBON AT TOO LOW A VELOCITY NITROGEN DOESN'T COMBINE WITH THE CARBON AT TOO HIGH A VELOCITY IT BOUNCES OFF THE ATOMS PROF LIEBER SAYS THAT UNTIL THE TEAM MAKES A LARGE PIECE OF THE MATERIAL FOR RIGOROUS HARDNESS TESTING IT WON'T BE ABLE TO SAY EXACTLY WHETHER THE NEW MATERIAL IS HARDER THAN DIAMOND FROM A SCIENTIFIC POINT OF VIEW IT IS A WONDERFUL CHALLENGE TO BE ABLE TO REWRITE THE DOGMA THAT NOTHING IS HARDER THAN DIAMOND IN ANY CASE THE NEW MATERIAL HAS COMMERCIAL POTENTIAL AS A SUBSTITUTE FOR ARTIFICIAL DIAMOND RESEARCHERS AROUND THE WORLD ARE TRYING TO DEVELOP INEXPENSIVE WAYS OF MAKING DIAMOND FOR ABRASIONRESISTANT COATINGS AND TO DISSIPATE HEAT IN EVERSMALLER MICROELECTRONIC DEVICES THE CARBONNITRIDE MATERIAL LIKE DIAMOND IS AN EFFICIENT THERMAL CONDUCTOR IT'S TOO EARLY TO TELL HOW THE CARBONNITRIDE MATERIAL WOULD COMPARE IN COST WITH SYNTHETIC DIAMOND WHICH REQUIRES AN EXPENSIVE HIGH PRESSURE AND TEMPERATURE PROCESS TO MAKE ONE THING SEEMS CERTAIN HOWEVER THE NEW MATERIAL OPENS UP A WHOLE NEW COMPETING AREA FOR SUPERHARD MATERIALS SAYS PROF LIEBER INDEED HE SAYS PROF COHEN'S THEORY AND THE HARVARD EXPERIMENT THAT HAS PROVED MOST OF ITS PREDICTIONS USHER IN THE POSSIBILITY OF ACCURATELY DESIGNING MATERIALS WITH PREDICTABLE PROPERTIES 9307200148 930720 WHO'S NEWS AL LABORATORIES AL LABORATORIES FORT LEE NJ JAMES E FLYNN 27 YEARS OLD WAS NAMED VICE PRESIDENT CORPORATE DEVELOPMENT A NEW POSITION AT THIS PHARMACEUTICAL CONCERN MR FLYNN HAD BEEN SENIOR VICE PRESIDENT PHARMACEUTICAL EQUITY RESEARCH AT KIDDER PEABODY & CO 9307200147 930720 REVIEW & OUTLOOK EDITORIAL FOLEY'S FORTUNE AS STOCK MARKET WATCHERS WE'VE LONG HAD A HEALTHY RESPECT FOR ANYONE WHO CAN BEAT THE AVERAGES SO WE COULD NOT HELP BUT BE DRAWN TO A RECENTLY PUBLISHED ACCOUNT OF THE ASTONISHING FINANCIAL ACUMEN OF SPEAKER OF THE US HOUSE OF REPRESENTATIVES TOM FOLEY NEARBY WE REPRINT AN ILLUMINATING STORY ON THE SPEAKER'S FINANCES BY GLENN SIMPSON FROM THE JUNE 28 ISSUE OF ROLL CALL A SMALL TWICEAWEEK PAPER THAT COVERS CONGRESS OFTEN RATHER AGGRESSIVELY SEE RELATED ARTICLE TOM FOLEY STOCK SPECULATOR WSJ JULY 20 1993 TRYING TO FIGURE OUT HOW TO FOLLOW UP MR SIMPSON'S SCOOP IT FINALLY DAWNED ON US WE COULD SIMPLY SHARE IT IN WHOLE WITH OUR READERS MR SIMPSON REPORTS THAT MR FOLEY MANAGED TO FIND HIS WAY TO WINNERS IN 40 OF 42 PERSONAL INVESTMENTS IN THE VOLATILE INITIAL PUBLIC OFFERING MARKET THE SPEAKER HAS MADE ABOUT 100000 SINCE 1989 ON THESE HOT TIPS A TIDY INCOME SUPPLEMENT FOR A CAREER POLITICIAN INVESTING IN THE STOCK MARKET IS OF COURSE A WONDERFUL PASTIME MILLIONS INCREASINGLY HAVE THEIR MONEY INVESTED IN MUTUAL FUNDS AND AMATEUR INVESTORS STILL TAKE FLYERS ON INDIVIDUAL STOCKS WHAT MAKES THE SPEAKER'S ACTIVITY REMARKABLE HOWEVER IS THAT IPOS ARE ALL BUT IMPOSSIBLE FOR THE AVERAGE INVESTOR TO GET A PIECE OF UNDERWRITERS USUALLY RESERVE THEM FOR INVESTORS WHO PROVIDE LOTS OF COMMISSION BUSINESS OR OTHER FAVORED CLIENTS THE SPEAKER ATTRIBUTES HIS NEARPERFECT RECORD TO INVESTMENTS MADE ON HIS BEHALF BY AN OLD HIGH SCHOOL CHUM TURNED BROKER PETER DE ROETTH OF BOSTON WE HAVE A LONG FRIENDSHIP DATING BACK TO OUR HIGH SCHOOL DAYS AND HE HAS NEVER ASKED ME FOR ANY ASSISTANCE OF ANY KIND MR FOLEY TOLD REPORTERS ON JUNE 29 THE DAY AFTER MR SIMPSON'S STORY APPEARED NONETHELESS MR FOLEY WASN'T EXACTLY EAGER TO TALK ABOUT ALL OF THIS THE JUNE 29 TRANSCRIPT RECORDS THIS EXCHANGE QUESTION NO ONE HAS SUGGESTED THAT YOU DID ANYTHING WRONG OR UNETHICAL IN PROFITING HANDSOMELY FROM THESE STOCK TRADES THAT WERE CONDUCTED ON YOUR BEHALF BY YOUR BROKER BUT GIVEN THE FACT THAT THESE IPOS ARE SO LIMITED THAT THEY ARE USUALLY ONLY GIVEN TO MUCH LARGER INVESTORS INVESTORS WHO HAVE PAID SUBSTANTIAL COMMISSIONS ON MORE ORDINARY DEALS TO A FIRM DO YOU SEE ANYTHING UNUSUAL PERHAPS EVEN UNETHICAL ABOUT YOUR BROKER'S ACTIONS ON YOUR BEHALF THE SPEAKER NO MY ANSWER IS NO NO TO THAT QUESTION THE SPEAKER'S PAGE DONALD LACEY MR SPEAKER IT IS NOW ONE MINUTE BEFORE YOUR NEXT APPOINTMENT TO LATER QUESTIONS ON THE SUBJECT MR FOLEY OFFERED ONLY A CLIPPED NO ONE OF THOSE QUESTIONS WAS WHETHER MR DE ROETTH'S INVESTMENTS FOR MR FOLEY IN FACT AMOUNTED TO A WAY OF EVADING HOUSE RULES ON GIFTS STUDENTS OF THE HOUSE WILL REMEMBER THAT MR FOLEY'S PREDECESSOR JIM WRIGHT GOT INTO HOT WATER FOR SELLING A BOOK THAT LOOKED LIKE A RUSE TO PAD HIS INCOME BY EVADING SIMILAR RULES AS IT HAPPENS NORISK STOCK DEALS HAVE A HISTORY IN AMERICAN POLITICS THE SENATE BANKING COMMITTEE'S PECORA HEARINGS IN THE EARLY 1930S REVEALED THAT THE MORGAN PARTNERSHIPS WERE MAKING NEW STOCK ISSUES AVAILABLE AT THE PREMARKET PRICE TO A WIDE RANGE OF WASHINGTON POLS INCLUDING THE CHAIRMEN OF BOTH THE REPUBLICAN AND DEMOCRATIC NATIONAL COMMITTEES THESE SENSATIONAL HEARINGS LED TO THE LEGISLATION THAT SHAPED TODAY'S FINANCIAL SYSTEM WE DON'T PRETEND TO KNOW THE MOTIVES FOR MR DE ROETTH'S GENEROSITY BUT THERE ARE ALSO QUESTIONS ABOUT THE PEOPLE MAKING THE IPOS AVAILABLE TO MR DE ROETTH DO THESE GENEROUS SOULS KNOW THAT MR DE ROETTH IS CUTTING THE SPEAKER OF THE HOUSE IN ON THESE DEALS IF THEY DO WHAT DO THEY WANT BY THE WAY HAVE THE REST OF MR DE ROETTH'S CLIENTS HAD ACCESS TO THE SAME IPOS AS SPEAKER FOLEY AND IF NOT WHY NOT AFTER THE NEWS CONFERENCE ON THE ORIGINAL ROLL CALL PIECE THE FOLEY IPO STORY DROPPED FROM SIGHT ALAN ABELSON GAVE A BRIEF HEADSUP IN HIS COLUMN FOR OUR SISTER PUBLICATION BARRON'S AND A SEATTLE TIMES EDITORIAL NOTED THAT THIS WAS THE SAME HOUSE SPEAKER WHO PRESIDED OVER THE HOUSE POST OFFICE AND BANK SCANDALS AND FILES LAWSUITS TO OVERTURN TERMLIMIT INITIATIVES PERHAPS ALL OF THIS IS JUST AS STRAIGHTFORWARD AS THE SPEAKER INSISTS BUT IT SURE LOOKS A LOT LIKE MODERN WASHINGTON NICE WORK IF YOU CAN GET IT 9307200145 930720 COMPTROLLER ISSUES GUIDANCE TO BANKS ON MUTUAL FUNDS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY WARNED BANKS SELLING MUTUAL FUNDS THAT THEY RISK VIOLATING FEDERAL BANKING AND SECURITIES LAWS IF THEY DON'T CLEARLY INFORM BUYERS THAT FUNDS AREN'T INSURED DEPOSITS THE AGENCY SENT A STATEMENT TO 3600 BANKS OUTLINING THE STEPS THEY MUST TAKE TO MAKE SURE THAT THEIR CUSTOMERS UNDERSTAND THE DIFFERENCE BETWEEN INSURED DEPOSITS AND PURCHASES OF MUTUAL FUNDS ANNUITIES AND OTHER INVESTMENT PRODUCTS THE LONGANTICIPATED GUIDANCE ISN'T LIKELY TO CHANGE CURRENT SALES PRACTICES BY BANKS BECAUSE IT CONSOLIDATES INTO ONE DOCUMENT EARLIER RULINGS THAT THE COMPTROLLER HAD MADE ON MUTUAL FUNDS SALES THOUSANDS OF BANKS HAVE STARTED SELLING MUTUAL FUNDS AND ANNUITIES IN AN EFFORT TO HOLD ON TO FUNDS THAT CUSTOMERS ARE TAKING OUT OF LOWYIELDING DEPOSITS THE AMERICAN BANKERS ASSOCIATION ESTIMATES THAT IN A FEW YEARS MORE THAN HALF OF MUTUAL FUND SALES WILL BE MADE THROUGH BANKS THE GUIDANCE RECOMMENDED THAT BANKS MAKE CUSTOMERS SIGN STATEMENTS ACKNOWLEDGING THAT THEY HAVE BEEN INFORMED THAT INVESTMENT PRODUCTS AREN'T FEDERALLY INSURED AREN'T OBLIGATIONS OF THE BANK AND INVOLVE MARKET RISKS INCLUDING POSSIBLE LOSS OF PRINCIPAL BANKS AREN'T ALLOWED TO GIVE FUNDS NAMES THAT ARE IDENTICAL TO THE INSTITUTION'S NAME BUT THE NAMES CAN BE SIMILAR FOR INSTANCE THE COMPTROLLER'S OFFICE HAS TOLD NATIONSBANK THAT IT CAN SELL A FUND CALLED NATIONSFUND BANKS SHOULD RECOGNIZE THAT THE POTENTIAL FOR CUSTOMER CONFUSION MAY BE INCREASED WHERE THE BANK USES UNINSURED PRODUCT NAMES THAT ARE SIMILAR TO THE BANK'S OWN AND SHOULD DESIGN THEIR SALES TRAINING TO MINIMIZE RISK THE STATEMENT SAID LIKE STOCKBROKERS BANKS SELLING MUTUAL FUNDS ARE OBLIGATED TO DETERMINE IF THE INVESTMENTS ARE SUITABLE BY OBTAINING INFORMATION ABOUT THE CUSTOMER'S FINANCIAL STATUS AND INVESTMENT GOALS SEVERAL MEMBERS OF CONGRESS HAVE EXPRESSED CONCERN THAT THE SOARING SALE OF MUTUAL FUNDS IN BANK LOBBIES LEAVES ROOM FOR CONFUSION ABOUT WHETHER THE INVESTMENTS ARE INSURED OR NOT THE GENERAL ACCOUNTING OFFICE THE AUDITING ARM OF CONGRESS IS CURRENTLY STUDYING MUTUAL FUND SALES PRACTICES BY BANKS SUSAN KRAUSE SENIOR DEPUTY COMPTROLLER OF THE CURRENCY FOR SUPERVISION POLICY SAID WE HAVEN'T DETECTED ABUSES BY BANKS IN THE SALE OF MUTUAL FUNDS AND ANNUITIES SHE SAID THE AGENCY ISSUED THE STATEMENT BECAUSE BANKS HAVE BEEN LOOKING TO US FOR GUIDANCE A REGULATORY GUIDANCE DOESN'T HAVE THE FORCE OF A RULE BUT TELLS INSTITUTIONS THE KINDS OF THINGS AN EXAMINER WILL LOOK FOR WHEN DETERMINING WHETHER THEY ARE COMPLYING WITH THE LAW WHENEVER POSSIBLE BANKS SHOULD SEPARATE FUND SALES FROM DEPOSITTAKING THE SAME PEOPLE SHOULDN'T PERFORM BOTH FUNCTIONS AND THE SALE OF FUNDS SHOULD TAKE PLACE IN A DIFFERENT PART OF THE BANK THAN WHERE TELLER SERVICES AND OTHER TRADITIONAL BANKING SERVICES ARE PROVIDED THE GUIDANCE ALSO SAID THAT A BANK'S TOP MANAGEMENT AND DIRECTORS MUST MONITOR THE ADEQUACY OF THE BANK'S TRAINING MARKETING COMPLIANCE AND COMPENSATION PROGRAMS COVERING FUNDS SOLD DIRECTLY BY BANKS AND BY UNAFFILIATED FUND REPRESENTATIVES WORKING WITH THE BANK ROBERT KURUCZA A MUTUAL FUND EXPERT WITH THE LAW FIRM OF MORRISON & FOERSTER PRAISED THE COMPTROLLER'S OFFICE FOR LAYING OUT FIRM STANDARDS WHILE GIVING BANKS SOME FLEXIBILITY IN THE WAY THEY MEET THE GUIDANCE 9307200144 930720 FORMER CCAIR DIRECTOR FINED 15000 BY SEC WASHINGTON A FORMER DIRECTOR OF CCAIR INC WAS FINED 15000 BY THE SECURITIES AND EXCHANGE COMMISSION AFTER IT DETERMINED THAT HE FAILED TO MAKE TIMELY REPORTS OF MORE THAN 27 MILLION IN STOCK TRANSACTIONS THE TRANSACTIONS INVOLVED SHARES OF CCAIR AS WELL AS AIR TRANSPORTATION HOLDING CO OF WHICH HARRY E HAGERTY JR WAS A MAJOR SHAREHOLDER CCAIR BASED IN CHARLOTTE NC AND AIR TRANSPORTATION BASED IN DENVER NC ARE AIR CARRIERS MR HAGERTY WAS A DIRECTOR OF CCAIR UNTIL NOVEMBER THE SEC REQUIRES DIRECTORS TOP OFFICERS AND HOLDERS OF 10 OR MORE OF A COMPANY'S STOCK TO REPORT ANY CHANGES IN THEIR HOLDINGS ON A MONTHLY BASIS MR HAGERTY THE SEC SAID IN A COMPLAINT FAILED TO MAKE 33 SUCH FILINGS FROM MARCH 1985 THROUGH NOVEMBER 1992 THE SEC ORDERED MR HAGERTY TO CEASE AND DESIST FROM VIOLATING SEC REPORTING RULES WITHOUT ADMITTING OR DENYING THE ALLEGATIONS MR HAGERTY 52 YEARS OLD CONSENTED TO THE ORDER AND AGREED TO PAY THE FINE IT WAS AN ADMINISTRATIVE THING MR HAGERTY SAID I WAS REMISS BECAUSE I WAS TRYING TO SAVE SOME LEGAL FEES 9307200143 930720 PRIMERICA'S QUARTERLY NET IS UP 25 TRAVELERS POSTS 40 GAIN FOR QUARTER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL PRIMERICA CORP REPORTED A 25 RISE IN SECONDQUARTER NET INCOME WHILE EARNINGS AT TRAVELERS CORP WHICH PRIMERICA PARTLY OWNS SOARED 40 ON COST CUTS PRIMERICA REPORTED NET INCOME OF 1864 MILLION OR 102 A SHARE AGAINST 1496 MILLION OR 90 CENTS A SHARE A YEAR AGO RESULTS EXCEEDED ANALYST ESTIMATES AND CONTRIBUTED TO HIGHER STOCK PRICES FOR BOTH COMPANIES ON THE NEW YORK STOCK EXCHANGE YESTERDAY PRIMERICA ROSE TO 52375 UP 875 CENTS OR 17 AND TRAVELERS CLIMBED 46 TO 31375 UP 1375 EACH OF PRIMERICA'S OPERATING SEGMENTS SHOWED IMPROVED RESULTS THE STRONGEST GAIN CAME FROM ITS INVESTMENT SERVICES GROUP WHICH INCLUDES THE SMITH BARNEY HARRIS UPHAM & CO BROKERAGE FIRM EARNINGS AT SMITH BARNEY ROSE TO 545 MILLION FROM 391 MILLION AND WERE BETTER THAN EXPECTED BECAUSE OF HEAVY VOLUME IN THE SECURITIES MARKETS AND RECORD RESULTS FROM INVESTMENT BANKING SALES IMPROVED SLIGHTLY IN PRIMERICA'S SLUGGISH LIFE INSURANCE SEGMENT PRIMERICA FINANCIAL SERVICES THE EARNINGS ARE VERY GOOD SAID SANFORD C BERNSTEIN ANALYST GUY MOSKOWSKI REVENUE FOR NEW YORKBASED PRIMERICA ROSE TO 128 BILLION FROM 127 BILLION CHAIRMAN SANFORD WEILL SAID THE COMPANY'S 1 BILLION ACQUISITION OF THE SHEARSON BROKERAGE FIRM FROM AMERICAN EXPRESS CO ORIGINALLY SCHEDULED TO CLOSE IN EARLY JULY HAS BEEN PUSHED BACK TO LATE JULY BECAUSE OF THE COMPLEXITIES INVOLVED IN THE TRANSACTION MR WEILL SAID THE TAKEOVER REMAINS ON TRACK HARTFORD CONNBASED TRAVELERS 27OWNED BY PRIMERICA REPORTED SECONDQUARTER NET INCOME OF 93 MILLION OR 55 CENTS A SHARE COMPARED WITH 66 MILLION OR 59 CENTS A SHARE A YEAR EARLIER PERSHARE RESULTS DECLINED BECAUSE OF A SHARPLY INCREASED NUMBER OF SHARES OUTSTANDING OPERATING EARNINGS A MEASURE PREFERRED BY ANALYSTS OF INSURANCE STOCKS ROSE TO 56 CENTS A SHARE FROM 52 CENTS A SHARE A YEAR EARLIER OUR SECONDQUARTER RESULTS DEMONSTRATE THE SIGNIFICANT PROGRESS WE'RE MAKING TO REDUCE EXPENSES AND SUBSTANTIALLY IMPROVE OUR EARNINGS SAID CHAIRMAN EDWARD BUDD OVER THE PAST 12 MONTHS TRAVELERS HAS REDUCED ITS WORK FORCE BY 3300 OR ABOUT 10 THE RESULTS ARE SHOWING UP IN EARNINGS SOONER THAN ANTICIPATED ACCORDING TO ANALYSTS TWO SEGMENTS BENEFITING FROM LOWER COSTS ARE TRAVELERS HEALTH CARE AND FINANCIAL SERVICES BUSINESSES BOTH OF WHICH REPORTED STRONG EARNINGS GROWTH BUT THE COMPANY'S COMMERCIAL PROPERTY AND CASUALTY INSURANCE BUSINESS CONTINUED TO SUFFER FROM INTENSE PRICE COMPETITION AND A DECLINE IN INVESTMENT INCOME OPERATING PROFIT FOR THE SEGMENT FELL 95 IF THAT CONTINUES THEY REALLY HAVE TO GET SOME PRICE INCREASES SAID SANFORD C BERNSTEIN ANALYST WESTON HICKS THE COMPANY'S PENSION BUSINESS LOST MONEY BECAUSE OF SOURED REAL ESTATE INVESTMENTS REVENUE AT TRAVELERS FELL SLIGHTLY TO 25 BILLION FROM 26 BILLION 9307200142 930720 OUTPUT OF RAW STEEL IN US DECLINED 01 IN THE LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 01 LAST WEEK TO 1853000 TONS FROM 1855000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 63 FROM THE 1744000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 88 OF ITS CAPABILITY LAST WEEK COMPARED WITH 89 THE PREVIOUS WEEK AND 81 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9307200141 930720 THE WINDY CITY IS JUST THE PLACE FOR ART THAT WON'T BLOW AWAY BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IN THIS CITY OF ART LOVERS SOME FOLKS ARE TAKING A CERTAIN ART EXHIBIT FOR GRANITE SCULPTURE CHICAGO A PRIVATE ARTS ORGANIZATION RECENTLY PLACED 100 HALFTON BOULDERS OF OKLAHOMA LIMESTONE ON DOWNTOWN SIDEWALKS HERE IN HONOR OF CHICAGO WOMEN EACH ROCK SPORTS A PLAQUE BEARING THE NAME OF AN HONOREE MYSTERY NOVELIST SARA PARETSKY IS ONE AS IS ILLINOIS SEN CAROL MOSELEYBRAUN WHILE DOGS PROBABLY FANCY THE ROCKS THE REACTION FROM SOME DOWNTOWN WORKERS IS STONY ONE CHICAGO SUNTIMES EDITOR SAYS HE NEARLY KILLED HIMSELF ON A WABASH AVENUE ROCK PARALEGAL TONY MILES HASN'T BEEN WOUNDED YET BUT HE STILL CALLS THE BOULDERS AN EYESORE OTHERS ARE PLAIN MYSTIFIED SOME PEDESTRIANS SNICKER ABOUT STRANGE METEOR SHOWERS DAGOBERT BERGMANS A TOURIST FROM THE NETHERLANDS WONDERS WHETHER THE ROCKS COMMEMORATE SITES OF BURNEDDOWN BUILDINGS AND COLLEGE STUDENT DINAH RIVAS INITIALLY FIGURED THEY HAD FALLEN OFF A CONSTRUCTION TRUCK I THOUGHT GOSH THEY ROLLED REALLY FAR' SHE SAYS THE SIDEWALK STONEHENGE WILL BE DISMANTLED IN SEPTEMBER AND NOT A MOMENT TOO SOON FOR MS RIVAS THE STREETS OF CHICAGO ARE BAD ENOUGH AS IT IS SHE SAYS IT'S LIKE THE CITY WANTS A BIG LAWSUIT ON THEIR HANDS PROJECT ARTIST SUZANNE LACY CONCEDES THAT SOME PEOPLE THINK SHE'S OFF HER ROCKER BUT SHE SAYS THERE'S A KIND OF GUERRILLA QUALITY THAT I REALLY LIKE ABOUT THE EXHIBIT WHICH IS CALLED FULL CIRCLE THE CALIFORNIA ARTIST ADDS THAT THE ROCKS ARE THERE TO MAKE PEOPLE ASK WHAT DO WE CHOOSE TO MAKE MONUMENTS OF MS LACY SPENT A YEAR WORKING ON THE PROJECT AND INSTALLED THE ROCKS ONE NIGHT IN MAY WITH THE HELP OF FLATBED TRUCKS CHERRY PICKERS AND 54 CONSTRUCTION WORKERS EVEN MORE CHALLENGING WAS THE POLITICAL STONEWALLING THAT PRECEDED THE INSTALLATION IT'S A BLOODY MIRACLE WE GOT THROUGH THE CITY COUNCIL SAYS MS LACY PROJECT SPOKESWOMAN SUZANNE GYLFE AGREES YOU WOULDN'T BELIEVE THE NUMBER OF PERMITS YOU NEED TO PUT YOUR BIG TOE ON THE SIDEWALK THE WOMEN ON THE BOULDERS SAY THEY'RE PLEASED BY THE UNUSUAL HONOR NOW THAT SHE'S A ROCK STAR ARTS ADVOCATE JOAN W HARRIS SAYS MORE PEOPLE AT WORK SAY HELLO SISTER MARGARET TRAXLER 69 YEARS OLD WHO RUNS A LOCAL WOMEN'S SHELTER SAYS I'M JUST GLAD IT WASN'T MY EPITAPH 9307200140 930720 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY FOREIGN MINISTERS AGREED TO SEND A MISSION TO THE FORMER YUGOSLAVIA TO WARN CROATIA THAT THE EC MAY IMPOSE ECONOMIC SANCTIONS IF ETHNIC CLEANSING AND ATTACKS ON MUSLIMS IN BOSNIAHERZEGOVINA AREN'T HALTED THE EC COULD WITHDRAW CONCESSIONS THAT ALLOW CROATIAN INDUSTRIAL AND FARM PRODUCTS TO ENTER THE EC DUTYFREE OR WITH REDUCED TARIFFS BUT THE MINISTERS POSTPONED DECISIONS ON SANCTIONS BECAUSE OF GERMAN RELUCTANCE ABOUT TOO HARSH A STANCE DESPITE CRITICISM BY BOSNIA'S MUSLIMS AND THE US THAT THE EC WASN'T CURBING SERBIAN AND CROATION AGGRESSION UNLESS THE EC ACTS CAUTIOUSLY GERMANY SAID HUNDREDS OF THOUSANDS OF MAINLY MUSLIM REFUGEES COULD FLEE CROATIA THE EC HOPES TO BACK MEDIATION TO PROD TALKS ON SETTLING THE WAR IN BOSNIA FRANCE AGAIN DEMANDED THE EC REOPEN TALKS WITH THE US ON LAST YEAR'S FARMTRADE DEAL TO CURB AGRICULTURAL SUBSIDIES THE MOVE COULD COMPLICATE STALLED NEGOTIATIONS ON AN ACCORD TO LIBERALIZE GLOBAL TRADE EUROPEAN AUTO MAKERS AND AN OIL INDUSTRY LOBBY AGREED ON A TWOYEAR RESEARCH PROGRAM TO STUDY EFFECTS OF FUEL AND ENGINE TECHNOLOGIES ON VEHICLE EXHAUST EMISSIONS THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION AND THE EUROPEAN PETROLEUM INDUSTRY ASSOCIATION HOPE TO IMPROVE ENVIRONMENTAL PERFORMANCE OF THEIR PRODUCTS AND TO DEVELOP A BASIS FOR NEW EMISSIONS STANDARDS TO BE SET IN THE EUROPEAN COMMUNITY IN THE YEAR 2000 THEY SAID EC AUTO EMISSIONS OF CARBON DIOXIDE HAVE BEEN CUT 93 AND NITROGEN OXIDE 85 SINCE 1970 A RUSSIAN CHEMICAL PLANT NEAR THE SIBERIAN CITY OF CHELYABINSK EMITTED RADIOACTIVE ISOTOPES INTO THE AIR AFTER A CONTAINER EXPLODED SATURDAY NIGHT AUTHORITIES DISCLOSED YESTERDAY THE ACCIDENT DIDN'T HARM WORKERS AT THE MAYAK PLANT ABOUT 900 MILES EAST OF MOSCOW BUT ITS EFFECT ON THE URALS AREA HADN'T BEEN DETERMINED THE LEAK INVOLVED A SMALL AMOUNT OF ENRICHED PLUTONIUM USED FOR MILITARY PURPOSES RUSSIA IN APRIL ORDERED TIGHTER NUCLEAR SAFETY AFTER AN EXPLOSION AT A TOMSK7 PLANT THE WORST NUCLEAR ACCIDENT SINCE THE 1986 CHERNOBYL DISASTER A FRENCH POLITICIAN SAID HIS LANGUAGE IS UNDER SEIGE FROM ENGLISH ENTIRE SECTIONS OF OUR NATIONAL ACTIVITIES ARE BECOMING BILINGUAL NATIONAL ASSEMBLY PRESIDENT PHILIPPE SEGUIN WROTE IN A WRITERS GROUP'S MAGAZINE THOUGH FRENCH IS USED BY 20 OF UNITED NATIONS DELEGATIONS HE SAID THAT IN FRANCE MANY FRENCH PEOPLE FEEL EXCLUDED FROM THE MODERN WORLD BECAUSE ENGLISH SEEMS TO BE THE EXCLUSIVE LANGUAGE FOR NEW SCIENTIFIC COMMERCIAL AND INDUSTRIAL TECHNIQUES HE SAID LAWS REQUIRING STATE BODIES TO USE FRENCH WORDS RATHER THAN ENGLISH EQUIVALENTS WERE FLOUTED AND CAMPAIGNS AGAINST TERMS SUCH AS LE WEEKEND AND LE JOGGING HAVE FAILED THOUGH FOREIGN COMPANIES HAVE SHOWN INTEREST IN THE SHANGHAI METAL EXCHANGE THEY WON'T BE ACCEPTED AS TRADING MEMBERS FOR NOW THE CHINA DAILY SAID A FEW BIG FIRMS FROM THE US AND SOUTH KOREA HAVE INQUIRED ABOUT MEMBERSHIPS THE EXCHANGE SAID IT WOULDN'T ADMIT INTERNATIONAL MEMBERS UNTIL CHINESE METALS ARE COMPETITIVE WITH FOREIGN PRODUCTS RULES ARE SET FOR FUTURES TRADING THAT MEET GLOBAL NORMS AND A SYSTEM IS FORMED TO ALLOW PAYMENT IN CHINESE AND HARD CURRENCIES SUDANESE LEGISLATORS WARNED THAT ECONOMIC REFORMS HAVE TRIGGERED PRICE CHAOS THAT COULD BE CATASTROPHIC PRICES HAVE DOUBLED ONCE AGAIN IN THE PAST TWO MONTHS AND OUTPACED SALARY INCREASES THE MILITARY GOVERNMENT'S REFORM PROGRAM INCLUDES REDUCING SUBSIDIES LIMITING IMPORTS SELLING OFF STATE ENTERPRISES AND DEVALUING THE POUND CURRENCY THE LIBERALIZATION MOVES AS WELL AS A DECADELONG CIVIL WAR CONTRIBUTED TO AN INFLATION RATE OF 149 LAST YEAR THAT SUDAN SAID SLOWED TO 81 ANNUALLY IN MARCH THE MAYOR OF SANWA JAPAN WAS ARRESTED FOR ALLEGEDLY TAKING 130000 IN KICKBACKS FROM HAZAMA CORP A CONSTRUCTION COMPANY IMPLICATED IN A BRIBERY SCANDAL IN THE CITY OF SENDAI PROSECUTORS ARRESTED MASAHIRO OYAMA SANWA MAYOR SINCE 1985 A HAZAMA SUBCONTRACTOR ACCUSED OF ACTING AS AN INTERMEDIARY AND THREE TOP HAZAMA EXECUTIVES SUSPECTED OF OFFERING THE BRIBES IN RETURN FOR GIVING HAZAMA A SPORTSCOMPLEX CONTRACT AND DETAILS ON BIDS HAZAMA WAS AWARDED A 13 MILLION JOB FOR THE MAIN BUILDING IN THE 195 MILLION SPORTS COMPLEX COMPLETED IN JUNE 1992 SANWA POPULATION 39000 IS DEVELOPING AS A BEDROOM COMMUNITY FOR TOKYO 37 MILES TO THE SOUTHEAST MEANWHILE TOKYO PROSECUTORS INDICTED FORMER SENDAI MAYOR TORU ISHII FOR TAKING ABOUT 930000 IN KICKBACKS FROM EXECUTIVES OF FOUR CONSTRUCTION COMPANIES AND FILED BRIBERY CHARGES AGAINST FIVE OF SIX CONSTRUCTION EXECUTIVES ARRESTED THE WORLD SCOUTING GROUP ADMITTED LATVIA CROATIA AND ROMANIA THEY WERE FOUNDING MEMBERS IN 1922 BUT THEIR SCOUTING ACTIVITIES WERE HALTED UNDER COMMUNIST RULE KIRIBATI A WEST CENTRAL PACIFIC ISLAND GROUP AND ST LUCIA IN THE CARIBBEAN ALSO WERE ADMITTED BRINGING THE TOTAL TO 134 A TWODAY TRANSPORT STRIKE BEGAN IN NEPAL CALLED BY THE COMMUNIST OPPOSITION IN A CAMPAIGN TO OUST THE PRIME MINISTER OF THE HIMALAYAN NATION 9307200139 930720 FINANCING BUSINESS TEXASNEW MEXICO POWER CO TEXASNEW MEXICO POWER CO A UNIT OF TNP ENTERPRISES INC SAID IT FILED FOR AN OFFERING OF 140 MILLION OF SECURED DEBENTURES AND 100 MILLION OF FIRSTMORTGAGE BONDS THE OFFERING OF THE DEBENTURES DUE 2003 AND THE BONDS DUE 2000 WILL BE UNDERWRITTEN BY DILLON READ & CO AND CHASE SECURITIES INC TEXASNEW MEXICO AN ELECTRIC UTILITY SAID MOST OF THE PROCEEDS WILL BE USED TO PAY DOWN BANK DEBT THE REST WILL BE USED TO RETIRE SERIES G FIRSTMORTGAGE BONDS AND TO REDEEM SERIES H I J AND K FIRSTMORTGAGE BONDS 9307200138 930720 PROVIDENCE HEALTH'S BUYBACK BEREA OHIO PROVIDENCE HEALTH CARE INC SAID ITS BOARD HAS EXTENDED THE COMPANY'S STOCK BUYBACK PROGRAM AUTHORIZING THE REPURCHASE OF AS MANY AS 100000 ADDITIONAL COMMON SHARES IN THE OPEN MARKET PROVIDENCE PROVIDES LONGTERM NURSING CARE THROUGH 14 NURSING FACILITIES IN OHIO VERMONT AND VIRGINIA THE COMPANY CURRENTLY HAS 38 MILLION SHARES OUTSTANDING 9307200137 930720 CHASE MANHATTAN NET INCREASED 53 IN SECOND QUARTER BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHASE MANHATTAN CORP REPORTED STRONGERTHANEXPECTED SECONDQUARTER EARNINGS OF 233 MILLION UP 53 FROM ONE YEAR AGO PROPELLED BY RECORD TRADING REVENUE AND A FALLOFF IN RESERVES FOR BAD DEBTS THOUGH THE 120 PERSHARE EARNINGS WERE FATTENED BY ONETIME GAINS ANALYSTS SAY EARNINGS FROM ONGOING OPERATIONS CAME TO ABOUT 105 TO 110 A SHARE SIGNIFICANTLY BETTER THAN THE CONSENSUS ESTIMATE OF AROUND 84 CENTS A SHARE BUT CHASE'S STOCK EDGED UP JUST SLIGHTLY TO 3275 UP 25 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ON CONCERNS THAT REVENUES REMAIN LACKLUSTER ASIDE FROM SECURITIES ACTIVITIES THE RESULTS COMPARED WITH THE YEAREARLIER NET OF 152 MILLION OR 83 CENTS A SHARE IT WAS OVERALL A PRETTY GOOD QUARTER SAID JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO BUT THE MARKET IS NOT PUTTING A TREMENDOUS WEIGHT ON REVENUE SOURCES DEEMED TO BE TEMPORARY STILL THE NATION'S SIXTH LARGEST BANKING COMPANY HAD TRADING REVENUE OF 187 MILLION ITS FIFTH CONSECUTIVE QUARTER OF SOLID TRADING HELPED BY STRONG RESULTS IN ITS DERIVATIVES AND EMERGING MARKETS SECURITIES BUSINESSES COMPANY OFFICIALS SAID IT WAS BENEFITING FROM A HIGHER CREDIT RATING AND ADDITIONAL PRODUCT CAPABILITIES I'M IMPRESSED BY THE LONGEVITY OF THE TRADING RESULTS SAID MR KRAUSHAAR THE COMPANY'S PROFIT MARGINS BETWEEN BORROWING AND LENDING RATES NARROWED SLIGHTLY BUT REMAIN WIDE BY HISTORICAL STANDARDS THE SOCALLED NET INTEREST MARGIN NARROWED 09 OF A PERCENTAGE POINT TO 407 PERCENTAGE POINTS LARGELY BECAUSE OF A DECLINE IN LOANS OUTSTANDING AND AN INCREASE IN LOWERYIELDING MONEY MARKET ASSETS MICHEL KRUSE THE COMPANY'S CHIEF FINANCIAL OFFICER PREDICTED AT AN ANALYSTS' PRESENTATION THAT THE MARGIN WOULD LIKELY REMAIN IN THE CURRENT RANGE STEADY AS SHE GOES SAID MR KRUSE THERE WAS ALSO GOOD NEWS ON THE BADDEBT FRONT THE QUARTERLY PROVISION FOR LOAN LOSSES WAS 225 MILLION DOWN FROM 360 MILLION IN THE FIRST QUARTER AND LESS THAN THE COMPANY INDICATED IN APRIL NONPERFORMING ASSETS EXCLUDING DEVELOPINGCOUNTRY DEBT FELL 9 MORE THAN EXPECTED AND THAT EXCLUDES THE 109 MILLION IN SALES FROM ITS PORTFOLIO OF COMMERCIAL REAL ESTATE HELD FOR SALE MEANWHILE EXPENSES REMAIN IN CHECK AS WORK FORCE CUTS CONTINUE SEPARATELY MR KRUSE SAID CHASE HAD RECEIVED INDICATIONS OF INTEREST FOR ITS ARIZONA BANK A 593 MILLION ASSET BANK THE COMPANY HAS REVALUED HOW IT CARRIES THE BANK ON ITS BOOKS IN ORDER TO ACCOUNT FOR IT CLOSER TO THE MARKET VALUE 9307200136 930720 TRIMAS CORP PLANS TO ISSUE DEBT ANN ARBOR MICH TRIMAS CORP A MAKER OF STEEL AND ALLOY FASTENERS AND SPECIALTY PRODUCTS SAID IT INTENDS TO OFFER 100 MILLION IN CONVERTIBLE DEBENTURES DUE 2003 THE OFFERING WILL BE MANAGED BY LEHMAN BROTHERS AND PAINEWEBBER INC PROCEEDS WILL BE USED TO RETIRE A PORTION OF THE COMPANY'S BANK DEBT 9307200135 930720 MARKETING & MEDIA MARKETSCAN SHAVINGCREAM FIRMS TRY SHARPER PITCHES BY KATHLEEN DEVENY IT'S GETTING A LOT CHEAPER TO TAKE IT OFF TAKE IT ALL OFF THANKS TO A FLURRY OF NEW PRODUCTS AND PROMOTIONS SC JOHNSON & SON INC HAS DOMINATED THE MARKET FOR SHAVING PREPARATIONS SINCE IT INTRODUCED EDGE THE FIRST SHAVING GEL MORE THAN 20 YEARS AGO BUT EARLIER THIS YEAR GILLETTE CO SHOOK UP THE CATEGORY WITH THE LAUNCH OF ITS PREMIUMPRICED SERIES LINE OF SHAVING CREAMS AND GELS GILLETTE IS PITCHING THE PRODUCTS PART OF A BROAD LINE OF MEN'S TOILETRIES AS A NATURAL FIT WITH ITS HOTSELLING SENSOR RAZOR AND IS EXPECTED TO SPEND MORE THAN 100 MILLION THIS YEAR ON JOINT ADVERTISING WITH SENSOR TO COAX CONSUMERS TO TRY THEM TO DEFEND ITS SHARE OF THE MATURE 2391 MILLION CATEGORY SC JOHNSON HAS OFFERED SOME CONSUMERS TWO SEVENOUNCE CANS OF ITS EDGE GEL FOR THE PRICE OF ONE AND IS TEMPTING OTHERS WITH A 1 MAILIN REFUND OFFER IT RECENTLY RELAUNCHED A LINE OF AFTERSHAVE SKIN TREATMENTS UNDER THE EDGE BRAND PACKAGED IN SNAZZY BLACK PUMP DISPENSERS AND THE COMPANY IS NOW ROLLING OUT AVEENO A SHAVE GEL WITH NATURAL OATMEAL FOR SENSITIVE SKIN BEING PROMOTED TO DERMATOLOGISTS WHO MIGHT RECOMMEND IT TO PATIENTS PROCTER & GAMBLE CO MEANWHILE HAS BEEN OFFERING BUYERS OF ITS NOXZEMA SHAVE PRODUCTS 20 MORE FREE PFIZER INC IS PROMISING BUYERS OF ITS BARBASOL BRAND 1475 OUNCES OF ITS SHAVING CREAM FOR THE PRICE IT USUALLY CHARGES FOR 11 OUNCES THE COMPANY EVEN PAID TO HAVE A CAN OF THE BUDGET BRAND APPEAR IN THIS SUMMER'S HIT MOVIE JURASSIC PARK AS A REPOSITORY FOR STOLEN DINOSAUR EMBRYOS THERE HAS BEEN A LOT OF INVESTMENT IN THIS CATEGORY ON THE PART OF A LOT OF PEOPLE SAYS PETER HOFFMAN VICE PRESIDENT AND BUSINESS MANAGER FOR MALE GROOMING PRODUCTS AT GILLETTE THE COMPETITIVE RESPONSE HAS BEEN TREMENDOUS WHILE THE BATTLE OVER AMERICA'S BEARDS HAS RESULTED IN BARGAINS FOR SHOPPERS MARKETERS ARE FEELING PINCHED THE SERIES LINE HAS ALREADY GRABBED 6 OF THE MARKET EDGE MEANWHILE HAS HUNG ONTO TO ITS LEAD AND EVEN INCREASED ITS SALES DOLLAR SALES OF THE BRAND GREW 67 TO 161 MILLION DURING THE 12 WEEKS ENDED MAY 23 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE MEASURED IN UNITS EDGE'S SALES SOARED 37 BUT ANALYSTS SAY IT IS UNLIKELY THAT EITHER EDGE OR GILLETTE SERIES IS PROFITABLE AND SALES OF NEARLY EVERY OTHER BRAND IN THE CATEGORY HAVE DECLINED SALES OF GILLETTE'S FOAMY SLIPPED 59 DURING THE PERIOD WHILE SALES OF BARBASOL DROPPED 121 AND COLGATE'S SALES FELL 114 PROCTER & GAMBLE'S PRODUCTS FARED EVEN WORSE SALES OF ITS NOXZEMA AND OLD SPICE SHAVE PREPARATIONS FELL 193 AND 324 RESPECTIVELY THE SERIES LINE IS AN ATTEMPT TO REVIVE GILLETTE'S LACKLUSTER MEN'S TOILETRIES BUSINESS ITS FOAMY SHAVING CREAM IS A DISTANT SECOND TO EDGE AND AN EFFORT TO LAUNCH A FOAMY GEL FLOPPED WHILE GELS ACCOUNT FOR ONLY ABOUT 35 OF THE MARKET FOR SHAVING PREPARATIONS THEY ARE THE FASTESTGROWING SEGMENT GILLETTE'S SERIES IS THE FIRST GEL WE WOULD CONSIDER COMPETITIVE FROM A PERFORMANCE POINT OF VIEW SAYS JAMES LIMBURG SENIOR RESEARCH SCIENTIST AT SC JOHNSON DESPITE SOME INITIAL SUCCESS GILLETTE'S STRATEGY REMAINS RISKY SERIES SHAVING CREAMS AND GELS WHICH HAVE BLUEANDSILVER PACKAGING AND CARRY A FRAGRANCE THE COMPANY CALLS COOL WAVE HAVE A SUGGESTED PRICE OF 249 FOR SEVEN OUNCES 25 MORE THAN THE SAME SIZE OF EDGE GILLETTE'S RIVALS AREN'T ABOUT TO LET UP EITHER SC JOHNSON CONTINUES TO OFFER REBATES ON EDGE AND HINTS THAT OTHER MEN'S TOILETRIES MAY BE IN THE WORKS JOHN SIMONE COLGATE'S MARKETING DIRECTOR FOR MEN'S TOILETRIES SAYS HIS COMPANY PLANS TO LAUNCH TWO NEW SKINCARE PRODUCTS NEXT MONTH FOR MUCH OF THE 1980S COSMETICS MARKETING EXECUTIVES PREDICTED A BOOM IN UPSCALE MEN'S TOILETRIES INCLUDING MOISTURIZERS DEODORANTS AND FANCY SHAVING CREAMS BUT THE MARKET REMAINS SMALL IN PART BECAUSE FEW MEN CONSIDER SKIN CARE TO BE AN IMPORTANT PART OF THEIR DAILY REGIMEN FURTHER COMPLICATING THE MARKETING CHALLENGE IS THE FACT THAT MORE THAN HALF OF ALL MEN'S TOILETRY PRODUCTS INCLUDING SHAVING CREAMS ARE BOUGHT BY WOMEN GILLETTE OFFICIALS DISMISS CONCERNS ABOUT PRICE DESPITE RAMPANT DISCOUNTING IN THE CATEGORY THE AVERAGE CAN OF SERIES SHAVE PREPARATION SOLD FOR 244 SAYS INFORMATION RESOURCES JUST SLIGHTLY LESS THAN THE COMPANY'S TARGET PRICE THE FACT THAT THE LINE HAS DONE SO WELL IN SUCH A COMPETITIVE ENVIRONMENT IS TESTIMONY TO THE PERFORMANCE OF THE PRODUCTS GILLETTE'S MR HOFFMAN CONTENDS WE'RE MEETING OUR PLAN 9307200134 930720 GM SETTLES ALL CLASS ACTIONS OVER PICKUPS OWNERS OF TRUCKS INVOLVED IN GASTANK DISPUTE TO GET 1000 COUPONS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SETTLED ALL OUTSTANDING CLASS ACTIONS INVOLVING ITS 47 MILLION PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS BY AGREEING TO GIVE OWNERS 1000 COUPONS TOWARD THE PURCHASE OF A NEW GM TRUCK IN TWO SEPARATE AGREEMENTS FILED IN A STATE COURT IN TEXAS AND A FEDERAL COURT IN PHILADELPHIA GM SAID IT SETTLED ALL THE CLASS ACTIONS FILED BY OWNERS OF ITS 19731987 PICKUPS WHICH CRITICS ALLEGE ARE VULNERABLE TO FIERY EXPLOSIONS IN SIDE COLLISIONS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HAS ASKED GM TO RECALL THE PICKUPS BUT THE AUTO MAKER MAINTAINS THEY ARE SAFE AND SAID AGAIN YESTERDAY THAT IT DOESN'T INTEND TO RECALL THE TRUCKS IT DOES NOT AFFECT THE NHTSA CASE IN ANY WAY SHAPE OR FORM A GM SPOKESMAN SAID THIS IS NOT A RECALL THERE IS ABSOLUTELY NO MODIFICATION OF THE VEHICLE THIS SEPARATES THE CUSTOMER SATISFACTION CONCERNS FROM THE TECHNICAL CONCERNS THE OWNERS WERE SEEKING TO FORCE GM TO MAKE THE GAS TANKS LESS DANGEROUS OR TO COMPENSATE ALL TRUCK OWNERS FOR EITHER THE COST OF REPAIRS OR THE RESALE VALUE THEY LOST BECAUSE OF THE DEFECT GM SAID IT DOESN'T EXPECT THE PROPOSED SETTLEMENT TO HAVE ANY MATERIAL FINANCIAL IMPACT ON THE COMPANY A SPOKESMAN SAID GM HASN'T SET ASIDE ANY MONEY TO COVER THE COST OF THE PROGRAM AND DOESN'T EXPECT TO TAKE A SPECIAL CHARGE THE GM SPOKESMAN DECLINED TO ESTIMATE HOW MUCH THE PROPOSED SETTLEMENT WOULD COST ALTHOUGH THE COSTS COULD THEORETICALLY COME TO 47 BILLION IF THE OWNERS OF ALL THE VEHICLES TOOK ADVANTAGE OF THE OFFER GM SAID IT DOESN'T EXPECT ALL OF THEM TO DO SO AND A SPOKESMAN POINTED OUT THAT TO BENEFIT FROM THE 1000 OFFER A COUPON RECIPIENT WOULD HAVE TO PURCHASE A NEW GM VEHICLE SO THERE IS A REVENUE COMPONENT GM SAD THE SETTLEMENT IS SUBJECT TO COURT APPROVAL MOST LIKELY AT A HEARING IN OCTOBER IN THE MEANTIME GM IS TO IDENTIFY THE OWNERS OF THE VEHICLES SO THAT THEY CAN BE CONTACTED TO INDICATE WHETHER THEY WILL ACCEPT THE OFFER A SPOKESMAN FOR THE NHTSA SAID THE SETTLEMENT WOULDN'T HAVE ANY EFFECT ON THE GOVERNMENT'S DELIBERATIONS THE AGENCY WHICH HAS ALREADY ASKED GM TO RECALL THE TRUCKS IS TRYING TO DECIDE WHETHER TO MAKE A FORMAL CLAIM THAT THE GAS TANKS ARE A SAFETY DEFECT THE ACTIVITIES IN THE COURTS DON'T HAVE ANY BEARING ON OUR ENGINEERING ANALYSIS THE NHTSA SPOKESMAN SAID BUT GM HAS ALREADY POKED HOLES IN THE NHTSA'S ASSERTION THAT THE TRUCKS ARE SUSPECT BECAUSE THEY IGNITE MORE OFTEN THAN FORD MOTOR CO TRUCKS IN FATAL COLLISIONS GM PRODUCED A LONG LIST OF OTHER PAIRS OF SIMILAR VEHICLES THAT HAVE WIDELY VARYING RATES OF IGNITING IN FATAL CRASHES GM WAS SCHEDULED TO FILE A RESPONSE TO OTHER GOVERNMENT QUERIES YESTERDAY ATTORNEYS FOR THE TRUCK OWNERS SAID THEY HOPED THE SETTLEMENT WOULD GIVE NEW IMPETUS TO THE NHTSA RECALL INVESTIGATION THIS IS THE FIRST ADMISSION THAT THERE IS A PROBLEM WITH THESE TRUCKS SAID TIMOTHY CROWLEY A HOUSTON ATTORNEY WHO HELPED NEGOTIATE THE SETTLEMENT IT IS VERY HARD FOR THEM TO TAKE THE POSITION THAT WE ARE ISSUING 5 BILLION WORTH OF DISCOUNTS OUT OF THE GOODNESS OF OUR HEARTS INDEED THE SETTLEMENT IS IN MARKED CONTRAST WITH GM'S AGGRESSIVE DEFENSE OF THE PICKUPS THE AUTO MAKER HAS REFUSED A PRELIMINARY GOVERNMENT REQUEST TO RECALL THE PICKUPS AND IT IS APPEALING A 1052 MILLION JUDGMENT AWARDED TO THE FAMILY OF A GEORGIA BOY WHO WAS KILLED IN A PICKUP WITH SIDEMOUNTED GAS TANKS WHAT'S MORE GM HAS REPEATEDLY CHARGED THAT THE TRUCKS WERE UNFAIRLY PORTRAYED AS UNSAFE BY SELFINTERESTED TRIAL LAWYERS AND THE NEWS MEDIA GM'S AGGRESSIVE DEFENSE OF ITS PICKUPS LED IT TO EXPOSE EARLIER THIS YEAR THE USE OF RIGGED TEST TRUCKS BY NBC NEWS DIANNE NAST A LEAD ATTORNEY FOR THE PLAINTIFFS IN PHILADELPHIA SAID THE SETTLEMENT WILL BE A BOON TO TRUCK OWNERS YOU'VE GOT PEOPLE WHOSE VEHICLES ARE AS OLD AS 21 YEARS AND THEY PAID SOMETHING LIKE 2300 THE TRUCKS HAVE NO WARRANTIES AND THEY HAVE A FAIRLY LIMITED VALUE MS NAST SAID MR CROWLEY WHO REPRESENTS TRUCK OWNERS IN TEXAS SAID THAT MANY OF THE 19731987 TRUCKS NOW ON THE ROAD HAVE BEEN RESOLD ONCE OR TWICE LIMITING THE OWNERS' RIGHTS UNDER WARRANTY LAW IF YOU'RE THE THIRD PERSON TO BUY A 20YEAROLD TOASTER AT A FLEA MARKET YOUR RIGHTS AGAINST THE TOASTER COMPANY MIGHT GO DOWN MR CROWLEY SAID UNDER THE TERMS OF THE SETTLEMENT TRUCK OWNERS AREN'T LIKELY TO RECEIVE THEIR COUPONS UNTIL NOVEMBER OR DECEMBER THEY THEN WILL HAVE 15 MONTHS IN WHICH TO USE THE COUPONS TO PURCHASE A GMC OR CHEVROLET TRUCK THE COUPONS CAN BE TRANSFERRED AT THE 1000 FACE VALUE IF AN AFFECTED TRUCK IS SOLD OR TO MEMBERS OF A TRUCK OWNER'S IMMEDIATE FAMILY THE CERTIFICATES CAN BE TRANSFERRED ONCE TO SOMEONE OUTSIDE A TRUCK OWNER'S IMMEDIATE FAMILY BUT THEY THEN WOULD HAVE A VALUE OF ONLY 500 THE AGREEMENT PROVIDES THAT THE COUPONS CAN BE USED TOWARD THE PURCHASE OF MOST LIGHT GM TRUCKS INCLUDING MINIVANS FULLSIZED VANS LARGE AND SMALL PICKUPS AND SPORTUTILITY VEHICLES INCLUDING THE SUBURBAN AND THE BLAZER THE SETTLEMENTS ARE INTENDED TO PUT AN END TO 36 SEPARATE CLASS ACTIONS THAT WERE FILED AGAINST GM THEY DO NOT HAVE ANY BEARING ON PRODUCTLIABILITY SUITS FILED AGAINST THE AUTO MAKER OR ON THE RECALL REQUEST IN FACT THE SETTLEMENTS ALLOW TRUCK OWNERS TO USE THEIR COUPONS WITHOUT TRADING THEIR VEHICLES IN SO THAT THEY COULD ALSO BENEFIT FROM A FREE REPAIR IF GM DOES RECALL THE TRUCKS ATTORNEYS FOR THE TRUCK OWNERS SAID THEY CONDUCTED FOCUS GROUPS TO DETERMINE THE KIND OF SETTLEMENT OWNERS WOULD LIKE AND FOUND THAT DESPITE CLAIMED SAFETY DEFECTS MANY TRUCK OWNERS ARE LOYAL GM CUSTOMERS ALMOST TO A PERSON THEY WANT THEIR GM PRODUCTS SAID MS NAST 9307200133 930720 A TALE OF A TRENDY NEW STOCK'S MYSTERIOUS SLUMP BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ADD THIS TO THE PERILS OF IPO INVESTING THE UNANNOUNCED EARLY RELEASE STOCK DUMP LAST TUESDAY A TRENDY SEMICONDUCTOR STOCK CALLED S3 INC WHICH LAUNCHED AN INITIAL PUBLIC OFFERING IN MARCH AT 15 A SHARE MYSTERIOUSLY SLUMPED 5 IN NASDAQ TRADING ON FOUR TIMES NORMAL VOLUME OF 742900 SHARES WHY SMALL INVESTORS WERE WITHOUT A CLUE THE SANTA CLARA CALIF COMPANY HADN'T MADE ANY ANNOUNCEMENT NEITHER HAD THE STOCK'S UNDERWRITER LEHMAN BROTHERS BUT A FEW BIG SHAREHOLDERS MAY HAVE BEEN CASHING IN UNDER A PRIVATE ARRANGEMENT THAT SOME THINK WILL BEGIN TO AFFECT MORE AND MORE IPOS THIS IS THE EARLY RELEASE IN WHICH AN UNDERWRITER ACCELERATES THE FIRST DATE AT WHICH INVESTORS CLOSE TO THE COMPANY ARE ALLOWED TO BEGIN SELLING STOCK IN AN IPO IN S3'S CASE LEHMAN AGREED WITHOUT FANFARE TO FREE UP SELLING BY THE PRIVATE INVESTORS EARLIER THAN THE ORIGINAL LOCKUP RELEASE DATE OF SEPT 2 TUESDAY WAS THE FIRST DAY THAT THESE INVESTORS WHO HAD BOUGHT THEIR SHARES BEFORE THE IPO AT AN AVERAGE 277 COULD CASH IN ON THE WILDLY SUCCESSFUL IPO WHICH HAD DOUBLED IN PRICE TO MORE THAN 30 A SHARE THE INVESTORS WERE TOLD IN A PRIVATE LETTER FROM S3 THAT THEY COULD SELL AS MUCH AS ONETHIRD OF THEIR HOLDINGS STARTING JULY 13 SOME OF THEM APPARENTLY DID PUSHING S3'S PRICE LOWER YESTERDAY S3 CLOSED AT 3325 A SHARE UP 75 CENTS S3'S PRICE ALREADY SLUMPED 15 IN THE WEEK BEFORE THE LETTER SUGGESTING THAT WORD GOT OUT TO WALL STREET TRADERS WHO SPECIALIZE IN DIGGING OUT WHEN IPO INSIDERS WILL SELL THEIR SHARES MANY IPOS SLUMP IN THE DAYS OR WEEKS BEFORE LOCKUP AGREEMENTS EXPIRE A ROUTINE PREVIOUSLY BRANDED THE PREINSIDE SALES DUMP SELLING RELATED TO LOCKUP EXPIRATIONS IS ONE OF 400000 THINGS YOU HAVE TO KEEP AN EYE ON IF YOU'RE A PROFESSIONAL TRADER IN IPOS SAYS JAY GOTTLIEB PUBLISHER OF NEW ISSUES OUTLOOK NEWSLETTER IN WHITE PLAINS NY HE SAYS HE ISN'T OUTRAGED BY THE S3 SITUATION BUT SAYS FOR PUBLIC RELATIONS AND FAIRNESS FOR SHAREHOLDERS THEY SHOULD HAVE DONE A PUBLIC ANNOUNCEMENT OTHER TECHNOLOGY COMPANIES SUCH AS BANYAN SYSTEMS HAVE ANNOUNCED THEIR EARLY RELEASE OF LOCKUPS NOTE IPO ANALYSTS THERE'S NO LEGAL REQUIREMENT EITHER WAY IN FACT THE IMPORTANT THING FOR INVESTORS ISN'T THE TIMING OF THE SALES BUT THAT THEY ARE INEVITABLE IF A STOCK HAS HAD A STRONG RUNUP YOU CAN BET THERE WILL BE INSIDER SELLING MORE OFTEN THAN NOT THE EXPERTS SAY THE STOCK NEVER RECOVERS ALL TOLD ABOUT TWO MILLION S3 SHARES WERE FREED UP TO BE SOLD AS OF JULY 13 ANOTHER TWO MILLION SHARES WILL BE FREED UP EARLY ON AUG 9 THE LETTER SAYS THE FINAL TWO MILLION WILL BE FREED UP ON SEPT 9 THE ORIGINAL EXPIRATION DATE OF THE LOCKUP AS A RESULT S3'S SMALL POSTIPO FLOAT OF TWO MILLION SHARES WILL BALLOON TO AS MUCH AS EIGHT MILLION LEHMAN DIDN'T BROADCAST IN ADVANCE THAT THESE POTENTIAL SALES WERE COMING NOR DID IT COMMENT ON THE STOCK'S DROP TUESDAY BUT WEDNESDAY LEHMAN PUT OUT A REPORT SAYING YESTERDAY WAS THE BEGINNING OF A PHASED RELEASE OF LOCKEDUP SHARES THE REPORT REITERATED A BUY RECOMMENDATION ON S3 STOCK CITING STRONG EARNINGS MOMENTUM THE POSTIPO SELLING OF S3 SHARES WASN'T UNUSUAL IN ITSELF IN MANY IPOS THE VENTURE CAPITALISTS CORPORATE INSIDERS AND OTHERS INVOLVED WITH THE COMPANY ARE BARRED FOR A TIME FROM SELLING THEIR SHARES TYPICALLY FOR 90 TO 180 DAYS AFTER THE OFFERING DATE IN MANY CASES THEY SELL IN DROVES ONCE THE LOCKUP EXPIRES BUT THE QUESTION IS SHOULD COMPANIES ANNOUNCE THEY ARE ALLOWING SUCH EARLY SELLING ESPECIALLY WHEN IT WILL ADD SO MANY ADDITIONAL SHARES TO THE MARKET THE RELEASE OF THE LOCKUP WAS DESCRIBED IN THE PROSPECTUS SAYS GEORGE HERVEY S3 CHIEF FINANCIAL OFFICER WHAT HE MEANS BY THAT IS THAT THE OFFERING DOCUMENT FOR THE IPO HAS A LINE SAYING THAT THE SIX MILLION INSIDER SHARES WOULDN'T BE SOLD SOONER THAN 180 DAYS WITHOUT PRIOR WRITTEN CONSENT OF LEHMAN BROTHERS IT DOESN'T SAY WHETHER AN ANNOUNCEMENT WOULD BE MADE THE DECISION IS ULTIMATELY CONTROLLED BY THE UNDERWRITER ADDS MR HERVEY TOSSING THE BALL INTO LEHMAN BROTHERS' COURT LEHMAN DECLINED TO COMMENT ON THE DISCLOSURE QUESTION BUT WALL STREET INVESTMENT BANKERS DEFEND LEHMAN'S DECISION NOTING THAT COMPANIES HAVE BEEN BURNED IN THE PAST BY MAKING ANNOUNCEMENTS ABOUT EARLY LOCKUP RELEASES INVESTORS OFTEN OVERREACT AND BAIL OUT OF THE STOCK FORCING THE COMPANIES TO REASSURE INVESTORS THAT ALL THE SHARES ELIGIBLE FOR SALE WON'T NECESSARILY BE SOLD IN THE LETTER TO THE FORMERLY LOCKEDUP INVESTORS S3 SUGGESTS THAT TO PROMOTE AN ORDERLY MARKET AND TO PROTECT S3'S SHARE PRICE YOU ARE ENCOURAGED TO USE THE COMPANY'S UNDERWRITERS TO ASSIST YOU IN THE SALE OF YOUR SHARES IF YOU DO NOT HAVE A BROKER ALREADY IT PROVIDES THE PHONE NUMBER OF LEHMAN AND COUNDERWRITER COWEN & CO MEANWHILE THERE ARE MIXED OPINIONS ABOUT S3 AS A COMPANY THE BULLS NOTE THE COMPANY'S LEADING POSITION IN THE MARKET FOR GRAPHICS ACCELERATORS WHICH BOOST THE PERFORMANCE OF PERSONAL COMPUTERS THAT RUN MICROSOFT WINDOWS SOFTWARE AND OTHER COMPLEX COMPUTER GRAPHICS SOFTWARE BUT EVEN S3 CONCEDES THAT COMPANIES SUCH AS INTEL CORP ARE STARTING TO INTEGRATE ADDITIONAL GRAPHICS CAPABILITY RIGHT INTO THEIR PRODUCTS WHICH COULD REDUCE THE NEED FOR WHAT S3 HAS TO OFFER THE PROSPECTUS FOR THE IPO WARNS THAT THERE CAN BE NO ASSURANCE THAT S3'S MARKET FOR ACCELERATORS WILL CONTINUE TO GROW EDWARD C WHITE JR THE LEHMAN ANALYST WHO FOLLOWS S3 REMAINS BULLISH DESPITE WHAT HE CALLS THE RECENT TRADING ACTIVITY UNRELATED TO THE STRONG FUNDAMENTALS OF THE COMPANY IN HIS RECENT REPORT HE ESTIMATES THE COMPANY WILL REPORT SECONDQUARTER EARNINGS OF 33 CENTS A SHARE ON THURSDAY UP FROM 10 CENTS A SHARE IN THE YEAREARLIER QUARTER S3'S MR HERVEY SAYS THE COMPANY HAS A POLICY AGAINST COMMENTING ON EARNINGS PROJECTIONS MR WHITE'S TARGET PRICE FOR THE STOCK HE WRITES IN HIS REPORT IS 42 OVER THE NEXT 12 MONTHS MR WHITE WAS OUT OF THE OFFICE YESTERDAY AND DIDN'T RETURN A PHONE MESSAGE S3 NOTES THAT THE COMPANY'S EXECUTIVE INSIDERS SUCH AS CHAIRMAN DIOSDADO P BANATAO WHO OWNS 407983 SHARES STILL AREN'T ALLOWED TO SELL THEIR SHARES JUST YET THEY MAY BE PERMITTED TO DO SO DURING A SELLING WINDOW AFTER EARNINGS COME OUT ALL THE SELLING SO FAR IS BY OTHER PREIPO SHAREHOLDERS WHO AREN'T EXECUTIVES AND DOESN'T REFLECT BEARISHNESS ABOUT THE COMPANY'S PROSPECTS ONE PERSON CLOSE TO THE COMPANY SAYS IT'S BETTER FOR THE STOCK TO HAVE MORE SHARES OUT THERE HE ADDS STILL THE SECRETIVE SELLING OF SUCH SHARES IS ANOTHER REASON MOST INVESTORS SHOULD TREAD LIGHTLY WITH IPOS SOME EXPERTS SAY LATELY THE BEST WAY TO MAKE MONEY ON IPOS HAS BEEN TO GET IN EARLY ON A LEGITIMATELY HOT ONE AN IMPOSSIBILITY FOR MOST SMALL INVESTORS AND SELL FOR A QUICK PROFIT WITHIN 90 DAYS 9307200132 930720 SALOMON INC UNIT TO BUY OIL REFINERY FROM DOW CHEMICAL FOR 200 MILLION BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON THE OIL REFINING SUBSIDIARY OF SALOMON INC PLANS TO BUY MOVE AND INTEGRATE A DOW CHEMICAL CO PLANT FOR 200 MILLION BETTING THAT THE INDUSTRY SLUMP IS ENDING IT'S A DIFFICULT DECISION TO INVEST AT THE BOTTOM OF THE INDUSTRY CYCLE JEFFREY SERRA CHIEF EXECUTIVE OF PHIBRO SAID IN AN INTERVIEW NOTING THAT OTHER REFINERS ARE SHUTTING OR SELLING FACILITIES BUT HE ADDED WHEN THE CYCLE TURNS PROFITABLE AGAIN WE'LL GET A LOT OF BANG FOR OUR BUCK MR SERRA SAID THAT 1995 LOOMS OUT THERE AS A POINT OF NO RETURN FOR A LOT OF PEOPLE BY 1995 PROVISIONS OF THE CLEAN AIR ACT KICK IN THAT WILL BE COSTLY TO REFINERS AND MR SERRA BELIEVES MORE PLANTS WILL CLOSE RATHER THAN MAKE HEAVY INVESTMENTS HE SAID THAT WILL CUT OVERPRODUCTION OF GASOLINE AND OTHER FUELS HE ADDED THAT DEMAND WILL PICK UP ALONG WITH GROWTH IN THE ECONOMY PHIBRO'S 200 MILLION INVESTMENT INCLUDES ACQUISITION OF A DOW REFINERY IN FREEPORT TEXAS PHIBRO WILL DISMANTLE THE PLANT AND MOVE CERTAIN EQUIPMENT TO ONE OF ITS TEXAS REFINERIES WHERE IT WILL BE REASSEMBLED AND INCORPORATED OTHER EQUIPMENT WILL BE SOLD NEITHER PHIBRO NOR DOW WOULD DISCLOSE THE PURCHASE PRICE IN MIDLAND MICH A DOW SPOKESMAN SAID THE COMPANY EXPECTS TO RECORD A SMALL GAIN FROM THE SALE BUT WASN'T SURE WHEN IT WOULD BE COMPLETED THE 200000BARRELADAY DOW PLANT IS AN ODD ONE BUILT IN 1980 TO MAKE OIL PRODUCTS TO FEED DOW'S VAST CHEMICAL COMPLEX IN FREEPORT DOW SHUT IT A YEAR LATER BECAUSE THE COMPANY COULD BUY SUCH FEEDSTOCKS MORE CHEAPLY MR SERRA SAID THE EQUIPMENT IS IN EFFECT NEW CALVIN COBB PRESIDENT OF HOUSTON CONSULTANTS WRIGHT KILLEN & CO SAID OTHER REFINERS EVALUATED THE PLANT BUT COULDN'T FIGURE OUT HOW TO USE IT PROFITABLY PHIBRO HAS DEVISED A COMPLEX WAY TO USE THE EQUIPMENT THE PRIMARY PIECE IS A RESIDFINER WHICH WILL ENABLE PHIBRO'S REFINERIES TO REDUCE THEIR OUTPUT OF RESIDUAL FUEL AN OIL PRODUCT WITH A DECLINING VALUE AND INCREASE OUTPUT OF HIGHERMARGIN PRODUCTS THE NEW EQUIPMENT ALSO WILL ENABLE PHIBRO TO BUY AND PROCESS CRUDE OILS WITH A HIGHER SULFUR CONTENT THESE CRUDES ARE HARDER TO REFINE BUT ARE LESS EXPENSIVE THAN LOWER SULFUR CRUDE OILS SALOMON INC'S OIL REFINING SUBSIDIARY PLANS TO BUY MOVE AND INTEGRATE A DOW CHEMICAL CO PLANT FOR 200 MILLION A HEADLINE IN TUESDAY'S EDITION INCORRECTLY STATED THAT THE PLANT WOULD BE PURCHASED FOR 200 MILLION NEITHER COMPANY WOULD DISCLOSE THE PLANT'S PURCHASE PRICE 9307200131 930720 INTERNATIONAL SOUTH KOREAN INVESTMENTS SEOUL SOUTH KOREA SOUTH KOREA'S OUTSTANDING INVESTMENTS IN CHINA SHOT UP 107 TO 290 MILLION AT THE END OF MAY FROM 140 MILLION A YEAR EARLIER SOUTH KOREA'S FINANCE MINISTRY SAID ACCORDING TO THE MINISTRY THE NATION'S INVESTMENTS IN CHINA HAVE CLIMBED AN ANNUAL AVERAGE OF 188 SINCE 1989 WHEN SOUTH KOREA STARTED INVESTING IN CHINA SOUTH KOREA RESTORED FORMAL RELATIONS WITH CHINA IN 1992 ENDING THREE DECADES OF HOSTILITY BETWEEN THE TWO COUNTRIES SINCE THE KOREAN WAR IN THE 1950S 9307200130 930720 MARKETING & MEDIA NEW CHARGES ARE FILED IN MAXWELL FRAUD CASE LONDON PROSECUTORS INVESTIGATING FRAUD IN THE COLLAPSE OF ROBERT MAXWELL'S BUSINESS EMPIRE SAID THE AMOUNT INVOLVED WAS ABOUT 300 MILLION 4456 MILLION MORE THAN DOUBLE THE 130 MILLION AMOUNT CITED IN THE ORIGINAL CHARGES THE SERIOUS FRAUD OFFICE DISCLOSED NEW CHARGES IN THE CITY OF LONDON MAGISTRATES' COURT AGAINST BROTHERS KEVIN AND IAN MAXWELL SONS OF THE LATE MEDIA TYCOON AND FOUR OTHER MEN THE 10COUNT INDICTMENT WAS TRANSFERRED TO THE CROWN COURT WHERE THE TRIAL WILL TAKE PLACE AMONG OTHER NEW ALLEGATIONS KEVIN MAXWELL MAXWELL ADVISER LARRY TRACHTENBERG FORMER MAXWELL FINANCE DIRECTOR ROBERT BUNN AND GROUP TREASURER ALBERT FULLER WERE CHARGED WITH CONSPIRING WITH ROBERT MAXWELL TO FALSELY REPRESENT TO CREDIT SUISSE THAT THE MAXWELL EMPIRE HAD CERTAIN SHAREHOLDINGS IN ORDER TO GET A 50 MILLION LOAN MR BUNN MR FULLER AND THE MAXWELL BROTHERS ALSO WERE CHARGED WITH CONSPIRING TO DEFRAUD BAYERISCHE VEREINSBANK AG BY CLAIMING THAT THE MAXWELL GROUP OWNED OTHER SHARES IN ORDER TO GET A 25 MILLION LOAN 9307200129 930720 WHAT'S NEWS WORLDWIDE CLINTON ANNOUNCED A COMPROMISE TO ALLOW HOMOSEXUALS INTO THE MILITARY THE PRESIDENT RETREATING ON A POLITICALLY EXPLOSIVE ISSUE SAID HOMOSEXUALS WOULD BE ALLOWED TO SERVE IN THE MILITARY BUT ONLY IF THEY REFRAIN FROM HOMOSEXUAL CONDUCT BUT HIS ENDORSEMENT OF THE DON'T ASK DON'T TELL POLICY COULD FACE A LEGISLATIVE CHALLENGE THAT MAY PREVENT RELAXATION OF OR EVEN TOUGHEN CURRENT RULES CLINTON'S DECISION ANGERED MANY GAY LEADERS WHO SAID HOMOSEXUALS IN THE ARMED FORCES WOULD HAVE TO REMAIN IN HIDING IN A VICTORY FOR GAYRIGHTS ADVOCATES COLORADO'S HIGHEST COURT REFUSED TO LIFT AN INJUNCTION AGAINST A 1992 STATE LAW BANNING LEGAL PROTECTIONS FOR HOMOSEXUALS FBI CHIEF SESSIONS WAS FIRED BY CLINTON AFTER RESISTING PRESSURE TO QUIT THE PRESIDENT IN TAKING THE ACTION CITED SERIOUS QUESTIONS ABOUT THE FBI DIRECTOR'S CONDUCT AND LEADERSHIP IT WAS THE FIRST TIME AN FBI CHIEF HAS EVER BEEN DISMISSED THE FIRING OF SESSIONS ENDED A LONG FEUD BETWEEN THE DIRECTOR AND THE WHITE HOUSE AN INTERNAL REPORT SIX MONTHS AGO HAD ACCUSED SESSIONS OF ETHICAL LAPSES BUT HE FOUGHT THE ALLEGATIONS AND DENIED ANY WRONGDOING CLINTON IS EXPECTED TO NOMINATE US DISTRICT JUDGE FREEH OF NEW YORK TO HEAD THE AGENCY FREEH IS A 43YEAROLD FORMER FBI AGENT AND FEDERAL PROSECUTOR MISSISSIPPI RIVER WATERS CRESTED AT ST LOUIS AT A LEVEL SOME THREE FEET BELOW THE RIM OF A 52FOOT FLOOD WALL PROTECTING MOST OF THE MISSOURI CITY IN DES MOINES IOWA WATER STARTED FLOWING BACK INTO THE CITY'S WATER MAINS NINE DAYS AFTER FLOODING CAUSED A SHUTDOWN IN THE WATER SYSTEM JAPAN'S PRIME MINISTER DEFIED LEADERS OF HIS LIBERAL DEMOCRATIC PARTY BY INSISTING HE WOULD HANG ON TO POWER AT LEAST FOR A WHILE SOME PARTY OFFICIALS SAID IT WAS ONLY A MATTER OF DAYS BEFORE MIYAZAWA STEPPED DOWN ON SUNDAY THE LDP SUFFERED ITS WORST ELECTORAL SETBACK SINCE TAKING OVER THE GOVERNMENT IN 1955 THE US AND NORTH KOREA REACHED AN INTERIM ACCORD TO EASE A CONFRONTATION OVER PYONGYANG'S REFUSAL TO PERMIT INSPECTION OF NUCLEAR PLANTS NORTH KOREA WHICH CONTINUES TO REJECT IAEA INSPECTIONS SAID IT WAS READY TO BEGIN TALKS WITH INTERNATIONAL INSPECTORS A UN ENVOY AND IRAQI OFFICIALS AGREED ON AN INTERIM SOLUTION TO A STANDOFF OVER THE UN'S MONITORING OF IRAQI MISSILE TEST SITES ENDING THE IMMEDIATE THREAT OF A PUNITIVE STRIKE BY WESTERN ALLIES FIERCE COMBAT RAGED AROUND A MOUNTAIN STRONGHOLD OVERLOOKING SARAJEVO WHERE OUTGUNNED BOSNIAN GOVERNMENT DEFENDERS FACED A SERB ASSAULT BOSNIA'S 10MEMBER COLLECTIVE PRESIDENCY MEANWHILE INDICATED IT WAS READY TO ATTEND GENEVA PEACE TALKS RELIEF WORKERS ENTERED A MENTAL HOSPITAL IN THE BOSNIAN TOWN OF FOJNICA AND FOUND 230 PATIENTS WHO HAD BEEN ABANDONED LAST WEEK TWO BABIES WERE DEAD AND THERE WAS ALMOST NO FOOD THE STAFF HAD FLED WHEN BOSNIAN ARMY TROOPS SEIZED THE TOWN FROM CROATS CLINTON IS SENDING A DELEGATION TO FIVE WORLD CAPITALS IN AN EFFORT TO BAN ALL NUCLEAR TESTING AND SLOW THE SPREAD OF MISSILE TECHNOLOGY THE DELEGATION WILL GO TO BRITAIN FRANCE GERMANY CHINA AND JAPAN NEARLY 60 OF STUDENTS SURVEYED SAID THEY COULD QUICKLY GET A HANDGUN IF THEY WANTED ONE AND 39 OF THE GROUP IN GRADES SIX THROUGH 12 SAID THEY KNEW SOMEONE KILLED OR WOUNDED BY GUNFIRE THE LOUIS HARRIS POLL OF 2508 STUDENTS NATIONWIDE ALSO FOUND AN INTENSE FEAR OF VIOLENCE TWO US SOLDIERS WERE WOUNDED IN SOMALIA WHEN TROOPS EXCHANGED FIRE WITH SNIPERS IN MOGADISHU MEANWHILE A UN ENVOY COMPLAINED THAT VIOLENCE IN THE CAPITAL HAS OBSCURED THE SUCCESS OF HUMANITARIAN EFFORTS ELSEWHERE IN SOMALIA OPPOSITION LEADER BHUTTO DEMANDED ELECTORAL REFORMS IN PAKISTAN TO PREVENT THE USE OF DRUG MONEY TO BUY VOTES IN MIDTERM ELECTIONS SET FOR OCTOBER THE NATION'S FEUDING PRIME MINISTER AND PRESIDENT QUIT SUNDAY CLEARING THE WAY FOR THE VOTE SOUTH AFRICAN GUNMEN KILLED SIX MEMBERS OF THE INKATHA FREEDOM PARTY AFTER HALTING THEIR VAN NEAR JOHANNESBURG THE SECRETARY GENERAL OF THE AFRICAN NATIONAL CONGRESS SAID HE FEARED THE MONTHS PRIOR TO AN APRIL 27 VOTE WOULD BE MARKED BY VIOLENCE ON A SCALE WE HAVEN'T EVEN IMAGINED 9307200127 930720 INTERNATIONAL COLOMBIA FRETS OIL BOOM MAY BRING BUST QUICK RICHES MAY UPSET WELLBALANCED ECONOMY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BOGOTA COLOMBIA AFTER ENDURING YEARS OF NARCOTERRORISM AND GUERRILLA WARFARE COLOMBIA IS BRACING FOR A NEW THREAT TO ITS ECONOMY AN OIL BOOM WITH THE CUSIANA AND CUPIAGUA FIELDS SET TO GO INTO PRODUCTION NEXT YEAR COLOMBIA COULD BE AWASH IN PETRODOLLARS AS ITS OIL INDUSTRY IS CATAPULTED INTO THE BIG LEAGUES THE FIELDS' PROVEN RESERVES OF TWO BILLION BARRELS OF CRUDE THE BIGGEST OIL FIND IN THE AMERICAS SINCE ALASKA'S PRUDHOE BAY IN 1969 AT THEIR PEAK WILL DOUBLE DAILY PRODUCTION TO MORE THAN ONE MILLION BARRELS TRIPLE OIL EXPORTS AND REAP 4 BILLION ANNUALLY THIS MAKES COLOMBIA A SIGNIFICANT PLAYER BIGGER THAN OPEC COUNTRIES QATAR AND GABON SAYS NICHOLAS CONNOLLY BP EXPLORATION'S GENERAL MANAGER FOR COMMERCIAL INTERESTS IN LATIN AMERICA BRITISH PETROLEUM PLC OPERATES THE OIL FIELDS IN PARTNERSHIP WITH FRANCE'S TOTAL SA TRITON ENERGY CORP OF THE US AND COLOMBIA'S STATE OIL COMPANY ECOPETROL BUT THE PROSPECT OF BECOMING OILRICH IS BEING GREETED HERE WITH MUCH HANDWRINGING AND FOREBODING FROM THE PRESIDENT ON DOWN AT A RECENT CONFERENCE ON THE OIL BOOM'S IMPACT PRESIDENT CESAR GAVIRIA WAITED UNTIL PAGE 14 OF A 15PAGE SPEECH TO SAY THAT THE OIL FINDS ARE GREAT NEWS FOR US COLOMBIANS BEFORE THAT HE WARNED REPEATEDLY OF IRREPARABLE DAMAGE TO INDUSTRY AND AGRICULTURE HE IS JOINED IN THIS FRETTING BY A WIDE ARRAY OF HIS COUNTRYMEN BUSINESS EXECUTIVES FEAR THE INFLOW OF FUNDS WILL DESTABILIZE COLOMBIA'S ECONOMY ORDINARY CITIZENS ARE AFRAID MORE MONEY WILL MEAN MORE CORRUPTION SOME SECURITY ANALYSTS FEAR A BOOM OF A DIFFERENT SORT MORE BOMBINGS OF OIL PIPELINES BY LEFTWING GUERRILLAS SUMS UP JORGE RAMIREZ OCAMPO EXECUTIVE PRESIDENT OF THE NATIONAL ASSOCIATION OF EXPORTERS THIS COULD BE A CATASTROPHE THE RISKS ARE OBVIOUS PART OF THESE DOOMSDAY SCENARIOS ARE CLEARLY INTENDED TO PREPARE THE PUBLIC FOR PRUDENT FISCAL POLICIES TO AVOID WASTING THE BONANZA BUT ECONOMISTS SAY THE WORRIES ALSO ARE MOTIVATED BY A GENUINE THREAT TO COLOMBIA'S ECONOMY DESPITE AN INORDINATE LEVEL OF DRUG AND GUERRILLARELATED VIOLENCE COLOMBIA HAS LONG BOASTED ONE OF LATIN AMERICA'S STRONGEST ECONOMIES WHILE MOST OF THE REGION VIEWED THE 1980S AS A LOST DECADE OF LOW GROWTH HIGH INFLATION AND SPIRALING DEBT COLOMBIA GREW AT AN AVERAGE PACE OF 4 A YEAR KEPT ANNUAL INFLATION AROUND 30 AND NEVER DEFAULTED ON ITS DEBT COLOMBIA ALSO MOVED AGGRESSIVELY TO DIVERSIFY ITS ECONOMY AND BREAK ITS RELIANCE ON COFFEE IN 1985 COFFEE ACCOUNTED FOR 45 OF TOTAL EXPORTS OF 38 BILLION BY 1992 EXPORTS NEARLY DOUBLED TO 73 BILLION OF WHICH COFFEE REPRESENTED ONLY 17 COLOMBIA BECAME THE WORLD'S SECONDBIGGEST EXPORTER OF CUT FLOWERS AND IS ALSO A BIG EXPORTER OF BANANAS AND OTHER FRUITS COAL LEATHER GOODS CHEMICAL PRODUCTS AND PRINTED MATERIAL BUT COLOMBIAN EXPORTERS ALREADY SUFFERING FROM PROTECTIONISM AND LOW COMMODITY PRICES ABROAD DROUGHT A WAVE OF IMPORTS AND THE APPRECIATION OF THE PESO SAY THE INFLOW OF OIL FUNDS COULD LEAD TO A FURTHER CURRENCY REVALUATION THAT COULD DESTROY COMPETITIVENESS AND TURN COLOMBIA INTO AN OIL ECONOMY IF NEW OIL EXPORTS SIGNIFICANTLY STRENGTHEN THE COLOMBIAN PESO AGAINST OTHER CURRENCIES THERE WILL BE ABSOLUTELY NO FLOWER COFFEE OR BANANA INDUSTRIES IN THIS COUNTRY AND YOU'LL HAVE MILLIONS OF PEOPLE WITHOUT A JOB SAYS JACK GOLDSTEIN DEPUTY MANAGER OF FLOWER EXPORTERS FLORA INTERCONTINENTAL THIS WOULD BE ALL THE MORE HARMFUL ECONOMISTS ADD BECAUSE THE COLOMBIAN OIL FINDS ARE SMALL BY WORLD STANDARDS CUSIANA AND CUPIAGUA WILL PEAK IN 1997 AND COULD BE EXHAUSTED WITHIN 20 YEARS IF WE HAD 60 BILLION BARRELS OF RESERVES LIKE MEXICO OR 50 BILLION BARRELS LIKE VENEZUELA WE COULD SAY WE'RE AN OIL COUNTRY AND ADJUST THE ECONOMY TO THIS REVALUE THE CURRENCY SAY GOODBYE TO OUR EXPORT INDUSTRIES AND BE A SAUDI ARABIA OR VENEZUELA SAYS ECONOMIST ANTONIO URDINOLA BUT WE HAVE ONLY ABOUT FOUR BILLION BARRELS OF RESERVES WE CAN'T SAY CIAO INDUSTRY CIAO AGRICULTURE' THIS BONANZA IS A TRANSITORY THING GOVERNMENT OFFICIALS SAY THEY ARE PROPOSING MECHANISMS TO NEUTRALIZE THE INFLOW OF FUNDS FINANCE MINISTER RUDOLF HOMMES SUGGESTS PAYING OFF PART OF COLOMBIA'S 14 BILLION PUBLIC FOREIGN DEBT OTHERS TALK OF SETTING UP A STABILIZATION FUND ABROAD AND USING IT ONLY GRADUALLY FOR PRODUCTIVE INVESTMENTS IN INFRASTRUCTURE OR EDUCATION BUT OTHERS SAY A COUNTRY WITH PERCAPITA INCOME OF 1240 CAN'T AFFORD NOT TO SPEND THESE FUNDS THOSE WHO ARE PROPOSING TO LEAVE THE REVENUE FROM CUSIANA ABROAD ARE ACTING LIKE DOCTORS WHO ADVISE THEIR PATIENTS TO STAY IN BED SO AS NOT TO GET SICK SAYS ECONOMIST EDUARDO SARMIENTO OTHERS ARE DOUBTFUL THAT THE GOVERNMENT WILL BE ABLE TO WITHSTAND THE PRESSURE TO SPEND AND ARE WORRIED THAT REGIONAL AND LOCAL GOVERNMENTS WHICH ARE CONSTITUTIONALLY ENTITLED TO PART OF OIL ROYALTIES WILL SPEND FREELY BUT OFFICIALS ARE CONFIDENT THE EXAMPLE OF NEIGHBORING VENEZUELA WHOSE BOOMTOBUST CYCLE LED TO TWO COUP ATTEMPTS LAST YEAR AND THE REMOVAL OF PRESIDENT CARLOS ANDRES PEREZ ON CORRUPTION CHARGES SHOULD HELP TEMPER SPENDING WE DON'T WANT TO BE IN A MACROECONOMIC ROLLER COASTER LIKE VENEZUELA SAYS JAIME JARAMILLO SENIOR ADVISER TO COLOMBIA'S PLANNING DIRECTOR THEY WENT THROUGH A BOOM DURING WHICH EVERYTHING WAS BEAUTIFUL THEN THE OIL PRICE DROPPED AND THEY HAD TO GO THROUGH A BITTER ADJUSTMENT PERIOD INSTEAD OF HAVING A HUGE PARTY ONE DAY AND A HANGOVER THE NEXT DAY WE CAN SPREAD IT OVER TIME AND HAVE A BETTER TIME BUT THERE'S ANOTHER DANGER OVER WHICH THE GOVERNMENT MIGHT HAVE LESS CONTROL TERRORISM THE OIL INDUSTRY HAS BEEN A PARTICULAR TARGET OF COLOMBIA'S THREE GUERRILLA GROUPS IN 1992 THE COUNTRY'S TWO MAIN OIL PIPELINES WERE BLOWN UP 86 TIMES AND THIS YEAR THERE HAVE BEEN 23 ATTACKS THESE HAVE CAUSED MILLIONS OF DOLLARS IN DAMAGE AND FORCED COLOMBIA TO SUSPEND OIL EXPORTS FOR NEARLY TWO MONTHS LAST YEAR THE OIL FIND RAISES THE ANTE AND COULD ESCALATE GUERRILLA ACTIVITY TO PREVENT THIS THE GOVERNMENT PLANS TO DEPLOY AN OIL ARMY OF 10 UNITS EACH WITH 180 COUNTERGUERRILLA TROOPS THESE WILL BE FUNDED IN PART BY A TAX OF NEARLY 1 PER BARREL OF OIL PRODUCED WE CAN'T NOT DEVELOP THE OIL INDUSTRY JUST TO PREVENT THE GUERRILLAS FROM EXPANDING SAYS JUAN MARIA RENDON PRESIDENT OF ECOPETROL IN ADDITION COLOMBIA PLANS TO UPGRADE ITS INTELLIGENCE AND FASTACTION FORCES IN THE CASANARE REGION WHERE THE OIL FIELDS ARE SITUATED TO PROTECT OUR INVESTMENT IN NATURAL RESOURCES AS WELL AS THAT OF OUR FOREIGN PARTNERS PRESIDENT GAVIRIA SAID RECENTLY 9307200126 930720 ENVIRONMENT MIDWEST DELUGE THWARTS EFFORTS TO PROTECT SOIL BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL WHILE THE FLOOD OF 1993 IS CAUSING BILLIONS OF DOLLARS IN PROPERTY DAMAGE ALONG THE MISSISSIPPI RIVER AND ITS TRIBUTARIES MOST OF THE DAMAGE TO THE MIDWEST'S MOST PRECIOUS NATURAL RESOURCE ITS TOPSOIL IS OCCURRING FAR FROM THE RIVERS' EDGE MIDWESTERN SOILCONSERVATION AND SURFACEWATER CLEANUP EFFORTS TWO FEDERAL FARM PROGRAM PRIORITIES FOR THE PAST FEW YEARS HAVE BEEN DEALT A SERIOUS SETBACK BY THE HEAVY RAINS OF RECENT WEEKS FIELDS ACROSS THE WESTERN CORN BELT ALREADY DENUDED AND SATURATED ARE SURE TO ERODE HEAVILY FOR WEEKS TO COME THIS SEASON'S SEVERE EROSION COULD REDUCE CROP YIELDS ON THE FIELDS THAT WERE ALREADY THE MOST HEAVILY ERODED AND INCREASE THE USE OF CHEMICAL FERTILIZERS AND PESTICIDES ON THOSE FIELDS NEXT YEAR AND BEYOND THIS IS ONE OF THE MOST SEVERE YEARS WE'VE SEEN FOR EROSION SAYS JIM JENSEN A FIELDCROP SPECIALIST FOR THE IOWA STATE UNIVERSITY EXTENSION SERVICE IN HENRY COUNTY IOWA WE'RE SENDING A LOT OF DIRT DOWN SOUTH WITH SOME STORMS OVER THE PAST FEW WEEKS DUMPING AS MUCH AS EIGHT INCHES OF RAIN ON PARTS OF THE COUNTY IN A MATTER OF HOURS WE'VE HAD SOME FIELDS THAT LOST MORE THAN 20 TONS AN ACRE IN A SINGLE RAIN HE SAYS THAT LEVEL OF SOIL LOSS IS FOUR TIMES GREATER THAN THE TOLERABLE ANNUAL EROSION RATE OF FIVE TONS AN ACRE OR ROUGHLY THE RATE AT WHICH TOPSOIL IS NATURALLY REPLENISHED IN THE MIDWEST ACCORDING TO DATA FROM THE AGRICULTURE DEPARTMENT'S SOIL CONSERVATION SERVICE THOUGH EROSIONRESISTANT FARMING TECHNIQUES APPEAR TO HAVE LESSENED THE DAMAGE NEARLY 10 OF THE CROPLAND IN IOWA THE HARDEST HIT AMONG MIDWESTERN STATES HAS SUFFERED SEVERE EROSION AT LEAST 20 TONS AN ACRE SAYS JEFFREY VONK STATE CONSERVATIONIST FOR THE SOIL CONSERVATION SERVICE EVEN AS THE SCS TALLIED ITS EROSION FIGURES FOR IOWA OVER THE WEEKEND YET ANOTHER STORM SYSTEM DUMPED FOUR MORE INCHES OF RAIN ON PORTIONS OF NORTHCENTRAL IOWA AND MORE RAIN IS IN THE FORECAST BY THE END OF THIS WEEK FARM CHEMICALS MEANWHILE ARE BEING WASHED INTO AREA STREAMS AND RIVERS ALONG WITH ANIMAL AND HUMAN WASTES FROM OVERFLOWING SEWAGETREATMENT PLANTS AT SEVERAL SITES ALONG THE MISSISSIPPI AND MISSOURI RIVERS AND THEIR TRIBUTARIES THE HUGE INCREASE IN RIVER VOLUME DILUTES THE CHEMICALS AND WASTES AND THEIR POTENTIAL EFFECTS ON HUMAN HEALTH BUT THIS YEAR'S EROSION ALSO COULD TEMPT SOME FARMERS TO USE MORE FERTILIZER NEXT YEAR TO COMPENSATE FOR THE DECLINING FERTILITY OF THEIR MOST ERODED FIELDS AND THAT COULD INCREASE THE AMOUNT OF CHEMICAL RUNOFF INTO THE REGION'S STREAMS AND RIVERS NEXT YEAR IN ADDITION TO IOWA SURROUNDING STATES INCLUDING NORTH AND SOUTH DAKOTA MINNESOTA ILLINOIS AND MISSOURI ALSO HAVE SUFFERED WIDESPREAD SOIL EROSION FROM THE HEAVY RAINS AND FLOODS SEVERE RAINS ETCH GULLIES ACROSS EXPOSED FIELDS THAT ARE EASILY IDENTIFIABLE FROM A DISTANCE BUT MUCH OF THE SOIL LOSS ACROSS THE MIDWEST THIS AND OTHER YEARS HAS TAKEN THE FORM OF SHEET AND RILL EROSION OFTEN INVISIBLE TO THE NAKED EYE THE SOIL WASHES OR BLOWS AWAY IN VERY THIN LAYERS THAT DON'T SEEM LIKE MUCH OF A LOSS BUT QUICKLY ADD UP A TOLERABLE LOSS OF FIVE TONS AN ACRE FOR INSTANCE IS ROUGHLY EQUAL TO LIFTING A SHEET OF PAPER'S WORTH OF TOPSOIL OFF OF EACH ACRE IN HEAVY FLOODS BOTTOMLANDS ALONG RIVERS RECEIVE AN EXTRA LAYER OF TOPSOIL BUT MOST OF THE EROSION ACROSS THE MIDWEST THIS YEAR HAS OCCURRED ON CROPLAND THAT WON'T BENEFIT FROM SUCH DEPOSITS AND MUCH OF THE ERODED SOIL IS DEPOSITED IN RIVERBEDS OR CARRIED OUT TO SEA DESPITE THE WIDESPREAD EROSION OVER THE PAST FEW WEEKS MR VONK SAYS THINGS COULD HAVE BEEN WORSE IF NOT FOR IOWA FARMERS' INCREASING USE OF EROSIONRESISTANT FARMING TECHNIQUES OVER THE PAST TWO TO THREE YEARS RECENT FEDERAL LEGISLATION REQUIRES FARMERS TO PRACTICE VARYING FORMS OF CONSERVATION TILLAGE ON HIGHLY ERODABLE ACREAGE BY 1995 IF THEY DON'T THEY RISK LOSING GOVERNMENT CROPSUPPORT PAYMENTS THOUGH MUCH OF IOWA IS RELATIVELY FLAT ABOUT 12 MILLION OF THE STATE'S 26 MILLION CULTIVATED ACRES HAVE BEEN LABELED HIGHLY ERODABLE BY THE AGRICULTURE DEPARTMENT NOTILL FARMING AND RELATED METHODS WHICH LEAVE ALL OR MUCH OF THE POSTHARVEST CROP STUBBLE ON THE FIELDS' SURFACE RATHER THAN PLOWING IT UNDER HAVE HELPED ANCHOR THE TOPSOIL AND GREATLY SLOW PESTICIDE RUNOFF HE ADDS NOTILL ACREAGE JUMPED THREEFOLD IN IOWA LAST YEAR TO ABOUT 28 MILLION ACRES AND IS EXPECTED TO INCREASE 20 TO 25 AGAIN THIS YEAR ODIE SWANEGAN AN SCS RESOURCE CONSERVATIONIST FOR MISSOURI SAYS NOTILL FARMING HAS RESULTED IN CONSIDERABLY LESS EROSION THAN CONVENTIONAL TILLAGE IN THAT STATE BEFORE THE SPREAD OF NOTILL AND RELATED LOWTILL FARMING TECHNIQUES MR VONK SAYS LESS SEVERE FLOODING HAD CAUSED MUCH MORE SEVERE EROSION ACROSS IOWA LESS INTENSE RAINSTORMS AND FLOODS IN 1984 SEVERELY ERODED AN ESTIMATED FOUR MILLION OF IOWA'S 26 MILLION TILLABLE ACRES COMPARED WITH 24 MILLION ACRES SO FAR THIS YEAR AND IN 1990 RAINS AND FLOODS ACROSS THE STATE LEFT 29 MILLION ACRES SEVERELY ERODED HE SAYS THIS ISN'T GREAT NEWS TO THE FARMERS WHO ARE SUFFERING BUT AT LEAST THERE'S AN INDICATION THAT WE'RE HAVING SOME SUCCESS CURBING EROSION MR VONK SAYS 9307200125 930720 ROSTENKOWSKI IS DEALT BLOW IN POSTAL PROBE EXPOSTMASTER OF THE HOUSE ADMITS EMBEZZLEMENT IN STAMPSFORCASH CASE BY DAVID ROGERS AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE'S FORMER POSTMASTER PLEADED GUILTY TO EMBEZZLEMENT CHARGES IN AN IMPORTANT BREAKTHROUGH FOR PROSECUTORS SEEKING TO BUILD A CASE AGAINST WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI IN THE CASHFORSTAMPS SCANDAL THE CHICAGO DEMOCRAT HAS REPEATEDLY DENIED ANY WRONGDOING BUT FORMER POSTMASTER ROBERT ROTA'S PLEA AND ACCOMPANYING COURT PAPERS REPRESENT A SERIOUS BLOW TO THE CHAIRMAN AT A TIME WHEN HE IS FOCUSING ON FINAL NEGOTIATIONS SHAPING THE CLINTON ADMINISTRATION'S DEFICITREDUCTION PLAN DOCUMENTS FILED BY GOVERNMENT INVESTIGATORS LIST A SERIES OF TRANSACTIONS TOTALING MORE THAN 30000 IN WHICH MR ROTA ALLEGEDLY HELPED TWO CONGRESSMEN CONVERT STAMPS OR OFFICIAL POSTAL VOUCHERS INTO CASH WHILE THE PAPERS LISTED THE TWO LAWMAKERS ONLY AS CONGRESSMAN A AND CONGRESSMAN B A LAWENFORCEMENT OFFICIAL LATER IDENTIFIED THEM AS MR ROSTENKOWSKI AND FORMER PENNSYLVANIA DEMOCRAT JOE KOLTER RESPECTIVELY AND THIS IDENTIFICATION APPEARS SUPPORTED BY HOUSE RECORDS RELATED TO POST OFFICE TRANSACTIONS CORRESPONDING TO THE DATES LISTED MR ROSTENKOWSKI'S OFFICE DECLINED TO COMMENT LAST NIGHT EFFORTS TO REACH MR KOLTER WHO WAS DEFEATED BY A FELLOW DEMOCRAT IN A PENNSYLVANIA PRIMARY LAST YEAR WERE UNSUCCESSFUL BUT IN THE PAST HE ALSO HAS DENIED ANY WRONGDOING IN MR ROSTENKOWSKI'S CASE THE DOCUMENTS ALSO REFER TO A CHANGE OF POST OFFICE PERSONNEL IN MID1989 WHEN A PATRONAGE EMPLOYEE OF THE ANONYMOUS CONGRESSMAN A WAS ELEVATED BY MR ROTA TO THE ROLE OF SUPERVISOR OF ACCOUNTS THIS HISTORY CLOSELY PARALLELS THE RISE OF JAMES SMITH WHO ASSUMED THE SUPERVISOR ROLE IN THE SAME 1989 PERIOD AND HAD PAST PATRONAGE TIES TO MR ROSTENKOWSKI MR SMITH HAS BEEN COOPERATING WITH THE INVESTIGATION AFTER RECEIVING A GRANT OF IMMUNITY LAST YEAR AND THE SIGNIFICANCE OF THE ROTA PLEA IS THAT IT APPEARS TO GIVE PROSECUTORS A SECOND WITNESS TO BACK UP ALLEGATIONS OF CASHFORSTAMPS TRANSACTIONS SUCH TESTIMONY WOULD BE DIRECTLY AT ODDS WITH PRIOR STATEMENTS BY THE LAWMAKERS INVOLVED AND UNLIKE MOST ETHICS CASES WHERE BOTH SIDES ARGUE ABOUT HOW TO INTERPRET A COMMON SET OF FACTS THIS CASE IS STRIKING FOR THE FLATLY CONTRADICTORY ACCOUNTS OF WHAT HAPPENED TODAY'S GUILTY PLEA IS A SIGNIFICANT STEP FORWARD IN WHAT HAS BECOME KNOWN AS THE HOUSE POST OFFICE INVESTIGATION SAID US ATTORNEY J RAMSEY JOHNSON AND THOUGH THE WHITE HOUSE SOUGHT TO PLAY DOWN ANY SPECULATION REGARDING MR ROSTENKOWSKI'S POSITION HOUSE REPUBLICANS DEMANDED THAT ALL THE RELATED VOUCHERS BE RELEASED AS PART OF A RENEWED INQUIRY INTO MR ROTA'S POST OFFICE TENURE PRESIDENT CLINTON IS TO LUNCH TODAY WITH MR ROSTENKOWSKI AND SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN REGARDING THE PENDING TAX NEGOTIATIONS WHILE THE TESTIMONY OF MR ROTA WHO IS COOPERATING WITH INVESTIGATORS COULD MAKE AN INDICTMENT OF REP ROSTENKOWSKI MORE LIKELY SUCH A DEVELOPMENT ISN'T SEEN AS IMMINENT AND THERE ARE STILL QUESTIONS AS TO WHAT WAS DONE WITH THE CASH IF AN INDICTMENT SHOULD RESULT THE CHICAGO DEMOCRAT WOULD BE FORCED TO GIVE UP HIS CHAIRMANSHIP UNDER DEMOCRATIC RULES AND AT A MINIMUM REPUBLICANS SEE AN OPPORTUNITY TO EMBARRASS THE DEMOCRATIC LEADERSHIP AT A TIME WHEN IT IS ALREADY STRUGGLING TO HOLD ITS PARTY TOGETHER BEHIND THE MASSIVE DEFICITREDUCTION PLAN THIS IS NOT JUST A CONGRESS' SCANDAL SAID HOUSE MINORITY WHIP NEWT GINGRICH JUST AS IN JAPAN THIS IS ABOUT CORRUPT ONEPARTY RULE FOR FOUR DECADES IN THE COURT PROCEEDINGS YESTERDAY MR ROTA 58 YEARS OLD PLEADED GUILTY TO ONE COUNT OF CONSPIRACY AND TWO COUNTS OF EMBEZZLEMENT ON SOME OCCASIONS MR ROTA PROVIDED LARGE AMOUNTS OF STAMPS TO THE CONGRESSMEN AND LATER EXCHANGED THE STAMPS FOR CASH AND ON OTHER OCCASIONS MR ROTA GAVE CASH DIRECTLY IN EXCHANGE FOR VOUCHERS SAID US ATTORNEY JOHNSON IN A PREPARED STATEMENT IN ACCOMPANYING COURT PAPERS THE GOVERNMENT MAKES CLEAR THAT MR ROTA ISN'T CHARGED WITH CONVERTING ANY OF THE CASH TO HIS PERSONAL USE BUT OF PLACING THE SERVICES OF HIS OFFICE AT THE DISPOSAL OF CERTAIN UNITED STATES CONGRESSMEN KNOWING FULL WELL THAT HE WAS AIDING THE EMBEZZLEMENT OF MONEY FROM THOSE FUNDS WHAT MR ROTA GOT IN RETURN WAS TO KEEP HIS JOB AS AN OFFICER OF THE UNITED STATES HOUSE OF REPRESENTATIVES THOUGH THE ALLEGED CONSPIRACY STRETCHES AS FAR BACK AS 1978 THE TRANSACTIONS DETAILED IN YESTERDAY'S CHARGES AGAINST MR ROTA FOCUS ON A TWOYEAR PERIOD FROM MAY 1985 TO MAY 1987 AND THEN AGAIN FOR 21 MONTHS FROM JULY 1989 THROUGH MAY 1991 THE UNIDENTIFIED CONGRESSMAN A WAS THE MORE HEAVILY INVOLVED IN BOTH CASES AND PROSECUTORS ALLEGE THAT MR ROTA PERSONALLY HANDLED STAMP VOUCHERS FOR CONGRESSMAN A VALUED AT A TOTAL OF 21300 OVER THE TWO PERIODS ON MOST OF THESE OCCASIONS MR ROTA GAVE CASH TO THE CONGRESSMEN DIRECTLY IN EXCHANGE FOR POSTAGE VOUCHERS ACCORDING TO THE GOVERNMENT'S DESCRIPTION OF EIGHT DIFFERENT TRANSACTIONS DURING THE 19891991 PERIOD DURING THE SUMMER OF 1989 MR ROTA TWICE DELIVERED TWO OTHER LARGE SUMS OF CASH TO CONGRESSMAN A HAVING OBTAINED THE CASH FROM HIS SUPERVISOR OF ACCOUNTS IN EXCHANGE FOR STAMPS DELIVERED BY THE CONGRESSMAN THE SIGNIFICANCE OF THIS ACCOUNT RELEASED BY PROSECUTORS YESTERDAY IS THAT IT ALLEGES DIRECT PERSONAL DEALINGS BETWEEN THE UNIDENTIFIED CONGRESSMAN A BELIEVED TO BE MR ROSTENKOWSKI AND MR ROTA IF BACKED BY CREDIBLE TESTIMONY BY THE FORMER POSTMASTER THIS WOULD CONTRADICT THOSE WHO HAVE ARGUED THAT THE CHAIRMAN WAS THE VICTIM OF EITHER SLOPPINESS OR MALFEASANCE BY AIDES IN THE OFFICE BUT BY ITSELF NOTHING IN THE DOCUMENTS YESTERDAY SAYS WHAT SPECIFICALLY THE CONGRESSMEN DID WITH THE CASH AND WHETHER IT WAS USED FOR THEIR PERSONAL PURPOSES OR SIMPLY RETURNED FOR OFFICE USE THE POST OFFICE INQUIRY WHICH BEGAN IN LATE 1991 FOCUSED FIRST ON ALLEGED EMBEZZLEMENT AND DRUG DEALING AMONG LOWLEVEL EMPLOYEES THEN TURNED TO ALLEGATIONS THAT HIGHERRANKING OFFICIALS AND LAWMAKERS WERE USING STAMP TRANSACTIONS TO LAUNDER POLITICAL AND OFFICE FUNDS IN MR ROSTENKOWSKI'S CASE HIS CHICAGO POLITICO LIFESTYLE HAS DRAWN INCREASED ATTENTION AND LATE LAST YEAR A WAVE OF NEW SUBPOENAS WENT OUT SEEKING FINANCIAL DOCUMENTS AND TESTIMONY FROM ROSTENKOWSKI AIDES AND FAMILY MEMBERS THOUGH THE LAWMAKER COMPLAINED BITTERLY OF THE TACTICS USED AT THE TIME BY THE REPUBLICAN PROSECUTOR IN THE DISTRICT OF COLUMBIA THE CASE HAS CONTINUED UNDER THE NEW DEMOCRATIC JUSTICE DEPARTMENT THE CHAIRMAN WAS DESCRIBED AS PARTICULARLY UPSET WHEN FAMILY MEMBERS WERE CALLED AS WITNESSES EARLY THIS SUMMER AND HE HIMSELF HAS REFUSED SO FAR TO TESTIFY INVOKING HIS FIFTH AMENDMENT PROTECTION AGAINST SELFINCRIMINATION 9307200124 930720 YOUR MONEY MATTERS BOND MANAGERS BEAT THE PACK BY FINDING MARKET INEFFICIENCIES BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL LOOKING AT THE PERFORMANCE OF PROFESSIONAL BONDMARKET INVESTORS IT'S EASY TO UNDERSTAND WHY MANY PEOPLE RECOMMEND INDEXING SIMPLY BUYING A PORTFOLIO OF BONDS WHOSE PERFORMANCE TRACKS SOME MARKET GAUGE DURING THE PAST 10 YEARS NEARLY THREE OUT OF FOUR BOND MANAGERS FAILED TO BEAT THE SALOMON BROTHERS BROAD INVESTMENT GRADE BOND INDEX ACCORDING TO SEI AN INVESTMENT RESEARCH COMPANY THE AVERAGE BOND MUTUAL FUND RETURNED JUST 1076 A YEAR IN THAT PERIOD 122 PERCENTAGE POINTS BEHIND THE INDEX ACCORDING TO MORNINGSTAR INC BUT A HANDFUL OF FIXEDINCOME MANAGERS DO MANAGE TO PULL AWAY FROM THE PACK THE 180 MILLION MANAGERS INTERMEDIATE MORTGAGE SECURITIES FUND POSTED AN IMPRESSIVE AVERAGE ANNUAL RETURN OF 1319 DURING THE PAST FIVE YEARS WHILE PACIFIC INVESTMENT MANAGEMENT CO'S 34 BILLION PIMCO TOTAL RETURN FUND HAD ANNUAL RETURNS OF 1261 THE FUNDS NOT ONLY BEAT THE FIVEYEAR INDEX RETURN OF 1136 BUT KEPT RISKS IN CHECK WHICH EARNED THEM TOP FIVESTAR RATINGS FROM MORNINGSTAR HOW DID THEY DO IT IN PART BY EXPLOITING THE FREE LUNCHES OR INEFFICIENCIES THEY SAY ARE LEFT ON THE TABLE BY OTHER BONDMARKET INVESTORS BASICALLY ALL OUR EXCESS RETURN IS A RESULT OF INEFFICIENCIES IN THE MARKETPLACE SAYS WORTH BRUNTJEN WHO RUNS THE MANAGERS INTERMEDIATE MORTGAGE FUND AS HE AND SOME OTHER PROS SEE IT THE BOND MARKET IS CHOCK FULL OF SUCH FREE LUNCHES THE TRICK IS BEING ABLE TO SPOT THEM AND HAVING THE FLEXIBILITY TO PROFIT FROM THEM THE INEFFICIENCIES ARISE BECAUSE A LOT OF BOND INVESTORS ARE SUBJECT TO ARTIFICIAL CONSTRAINTS WHICH MAKE THEM APPEAR IRRATIONAL SAYS FRANK RABINOVITCH A MANAGING DIRECTOR AT PIMCO IT'S NOT THAT THEY ARE IRRATIONAL IT'S JUST THAT THEIR REGULATORY TAX ADVERTISING OR ACCOUNTING ENVIRONMENT MAKES THEM ACT THAT WAY FOR EXAMPLE MANY BIG INVESTORS ARE COMPULSIVE BUYERS OF ONEYEAR SECURITIES A LOT OF REGULATIONS AND ACCOUNTING RULES DRAW AN ARBITRARY LINE AT 12 MONTHS SAYS MR BRUNTJEN MONEYMARKET FUNDS FOR INSTANCE AREN'T ALLOWED TO BUY SECURITIES THAT MATURE IN MORE THAN ONE YEAR WHILE ACCOUNTING RULES PRESSURE BANKS TO LIKEWISE STICK WITH ONEYEAR SECURITIES BUT ONEYEAR SECURITIES TEND TO BE PARTICULARLY BAD VALUES SAYS THOMAS KLAFFKY MANAGING DIRECTOR AT SALOMON INC SINCE 1980 RETURNS ON ONEYEAR PAPER HAVE BEEN ABOUT 05 PERCENTAGE POINT LESS THAN THEY SHOULD HAVE BEEN FOR THAT LEVEL OF RISK SALOMON RESEARCH SHOWS INDIVIDUALS WHO DON'T FACE SUCH RESTRAINTS COULD GET A BETTER DEAL FOR THE SAME AVERAGE RISK WITH A MIXED PORTFOLIO OF TWOYEAR AND SIXMONTH SECURITIES THAT WAY YOU AVOID BUYING SOMETHING THAT'S BEING BID UP BY EVERYONE ELSE SAYS MR KLAFFKY USUALLY THOUGH EXPLOITING SUCH INEFFICIENCIES REQUIRES SOPHISTICATED ANALYTICAL TOOLS AND VERY LOW TRADING COSTS THAT GENERALLY PUTS THEM OUT OF THE REACH OF SMALL INVESTORS UNLESS THEY PARTICIPATE INDIRECTLY THROUGH MUTUAL FUNDS TO IDENTIFY SUCH FUNDS INVESTORS SHOULD LOOK FOR BOND MANAGERS WITH RECORDS OF GOOD RETURNS BUT NOT BLOATED RISKS THEY SHOULD ALSO BE SURE THEIR CHOSEN FUNDS' MAIN GOAL IS HIGH TOTAL RETURN INCLUDING PRICE APPRECIATION AND NOT JUST YIELD IN TODAY'S LOW INTERESTRATE ENVIRONMENT MANY INVESTORS AND MUTUAL FUNDS ARE COMPELLED TO REACH FOR YIELD AT ALMOST ANY PRICE THAT CAN LEAD THEM TO MAKE POOR TRADEOFFS BETWEEN RISK AND RETURN WHICH DAMAGES THEM IN THE LONG RUN FOR EXAMPLE MANY ISSUES OF LONGTERM CORPORATE BONDS ARE CALLABLE AFTER 10 YEARS THAT IS THEY ALLOW THE COMPANY TO REDEEM THE BONDS AT A PRESPECIFIED PRICE IN 10 YEARS INVESTORS GET HURT WHEN THEIR BONDS ARE CALLED SINCE THAT ONLY HAPPENS WHEN FUTURE RATES ARE LOWER THAN TODAY'S SUDDENLY INVESTORS WOULD LOSE THE HIGHER INCOME THAT THEY THOUGHT THEY'D LOCKED UP LONG TERM TO COMPENSATE INVESTORS FOR THAT RISK CALLABLE BONDS OFFER HIGHER YIELDS THAN NONCALLABLE BONDS THE PROBLEM IS THEY DON'T OFFER ENOUGH EXTRA YIELD FOR THE RISK PEOPLE ARE SO HUNGRY FOR YIELD THEY'RE NOT BEING CAREFUL SAYS MR RABINOVITCH THE YIELD PREMIUM WOULD HAVE TO BE 045 TO 05 PERCENTAGE POINT ROUGHLY THREE TIMES TODAY'S LEVELS BEFORE LONGTERM CALLABLE BONDS WOULD BE WORTH THE EXTRA RISK HE SAYS THE FLIP SIDE OF THIS SITUATION IS THAT PUTABLE BONDS ARE CHRONICALLY CHEAP PUTABLE BONDS GIVE INVESTORS THE RIGHT TO SELL THE BOND BACK TO THE ISSUER AT A PRESPECIFIED PRICE SOME TIME IN THE FUTURE THAT RIGHT PROTECTS INVESTORS AGAINST A FUTURE BEAR MARKET BY LIMITING THEIR POTENTIAL LOSSES TO PAY FOR THAT INSURANCE INVESTORS GET A LOWER YIELD ON PUTABLE BONDS THAN ON NORMAL BONDS THE SECRET IS THE YIELD GIVEUP TYPICALLY ISN'T AS GREAT AS IT SHOULD BE TO PAY FOR THE BEARMARKET PROTECTION WHY DO PUTABLE BONDS SELL SO CHEAPLY MOSTLY BECAUSE BOTH ISSUERS AND BUYERS ARE DISTRACTED BY SHORTTERM GOALS ISSUERS ARE HAPPY AS LONG AS THEY CAN BORROW AT A LOWER RATE BECAUSE IT MAKES THEM LOOK GOOD SAYS MR RABINOVITCH BUT BECAUSE MOST BUYERS ARE RELUCTANT TO ACCEPT LOWER YIELDS HE SAYS PUTABLE BONDS' YIELDS END UP BEING HIGHER THAN IS WARRANTED GIVEN THEIR REDUCED RISK ANOTHER CASE OF YIELDDRIVEN INEFFICIENCY IS A VOLATILE SECURITY CALLED AN INTERESTONLY STRIP OR IO IOS ARE CREATED FROM MORTGAGEBACKED BONDS AS THE NAME SUGGESTS IOS RECEIVE ONLY THE INTEREST CASH FLOWS THAT ARE STRIPPED FROM THE MORTGAGE SECURITIES WHEN INTEREST RATES FALL AND HOMEOWNERS REFINANCE THEIR MORTGAGES THE UNDERLYING MORTGAGES THAT SUPPORT IOS EVAPORATE AND IOS' YIELDS PLUMMET WHEN THAT HAPPENS IOS' PRICES PLUNGE TOO INDEED AFTER THE PAST YEAR'S REFINANCING BOOM YIELDS ON SOME IOS ARE ACTUALLY NEGATIVE THAT IS IF HOMEOWNERS KEEP REFINANCING AT TODAY'S PACE PRICES OF IOS IN TODAY'S MARKET WOULD EXCEED THE PRESENT VALUE OF ALL THEIR FUTURE CASH FLOWS THOSE AWFUL YIELDS MAKE IOS VERY UNAPPETIZING TO TODAY'S YIELDSTARVED INVESTORS SO PRICES ARE DOWN TO 20 CENTS ON THE DOLLAR OR LOWER WHAT'S MORE REGULATORY CHANGES FOR BANKS THRIFTS AND INSURERS ESSENTIALLY HAVE PUT IOS OFFLIMITS TO MOST OF THOSE INSTITUTIONS BUT BECAUSE SO MANY BUYERS SEE IOS AS LEPROUS THEIR RISK/RETURN TRADEOFFS HAVE CHANGED PREPAYMENTS AREN'T LIKELY TO MAINTAIN TODAY'S PACE FOREVER SO THE POTENTIAL RETURNS ON SOME IOS FAR OUTWEIGH THE RISKS SAYS MR RABINOVITCH WITH LITTLE DOWNSIDE RISK AND POTENTIAL GAINS OF 50 OR MORE THESE POORYIELD GOOD RETURN CHARACTERISTICS MAKE IOS AN EXCELLENT ADDITION TO TOTAL RETURN PORTFOLIOS SOMETHING THAT'S NOT POSSIBLE FOR YIELDORIENTED MANAGERS MR RABINOVITCH SAYS EVEN SO IOS AREN'T A PRUDENT BET FOR MORE THAN 1 TO 2 OF A PORTFOLIO BECAUSE THEIR CHARACTERISTICS ARE TOO WEIRD 9307200123 930720 LETTERS TO THE EDITOR ELDER CARE PROVISIONS YOUR JUNE 23 ARTICLE FIRMS TRY HARDER BUT OFTEN FAIL TO HELP WORKERS COPE WITH ELDERCARE PROBLEMS FAILED TO MENTION THE FAMILY AND MEDICAL LEAVE ACT OF 1993 THAT LEGISLATION REQUIRES EMPLOYERS WITH 50 OR MORE EMPLOYEES TO AMONG OTHER THINGS PROVIDE UP TO 12 WEEKS OF LEAVE ANNUALLY TO EMPLOYEES WHO REQUIRE SUCH LEAVE TO CARE FOR A PARENT WITH A SERIOUS HEALTH CONDITION WHEN MEDICALLY NECESSARY THE LEAVE MAY BE TAKEN ON AN INTERMITTENT BASIS WHILE ADMITTEDLY SUCH LEAVE DOES NOT DEAL WITH THE ISSUE OF LONGTERM PARENTAL CARE IT CAN BE EXTREMELY HELPFUL IN CRISES 9307200122 930720 NATIONAL SERVITUDE NOT NATIONAL SERVICE BY DON NICKLES EVERY DAY MILLIONS OF AMERICANS GIVE OF THEIR TIME TALENTS AND ENERGY TO HELP OTHERS WHETHER THEY VOLUNTEER IN PROJECTS SPONSORED BY CHURCHES OR CIVIC ORGANIZATIONS THEY SHARE ONE CHARACTERISTIC THEY SERVE THEIR COMMUNITIES OUT OF A SENSE OF ALTRUISM AND NOT FOR PERSONAL GAIN PRESIDENT CLINTON HAS A PLAN THAT COULD UNDERMINE THEIR EFFORTS BY RAISING AN ARMY OF PAID VOLUNTEERS THE PLAN AS OUTLINED IN A BILL THE PRESIDENT SENT TO CONGRESS LAST WEEK IS COSTLY BUREAUCRATIC AND POTENTIALLY DESTRUCTIVE OF CIVIC SPIRIT THE PRESIDENT CALLS HIS PLAN NATIONAL SERVICE BUT IT COULD BE FAIRLY CALLED NATIONAL SERVITUDE SINCE PARTICIPANTS WOULD WORK OFF UP TO 10000 IN STUDENT LOANS BY ACCEPTING ASSIGNMENTS AS VOLUNTEERS THE POTENTIAL COSTS OF THE PROGRAM ARE STAGGERING THE ADMINISTRATION PLAN CALLS FOR THE CREATION OF A CORPORATION FOR NATIONAL SERVICE TO OVERSEE THE PROGRAM NATIONALLY AND THE ESTABLISHMENT OF SIMILAR AGENCIES IN EVERY STATE THESE AGENCIES WOULD BE RESPONSIBLE FOR FINDING JOBS TO WHICH THE VOLUNTEERS COULD BE ASSIGNED AND FOR ADMINISTERING THE PAYMENT OF STIPENDS AND BENEFITS THE FEDERAL CONTRIBUTION TO THESE STIPENDS WOULD BE CAPPED AT 8800 THE EQUIVALENT OF A FULLTIME YEARROUND JOB AT MINIMUM WAGE 425 AN HOUR HEALTH CARE COSTS WOULD AVERAGE 1500 PER PARTICIPANT ACCORDING TO THE ADMINISTRATION IT ESTIMATES THAT CHILD CARE COSTS WOULD AVERAGE 1500 TOO THUS THE AVERAGE ANNUAL COST OF ENROLLING ONE PARTICIPANT WILL BE 16800 5000 IN STUDENTLOAN FORGIVENESS AN 8800 STIPEND 1500 IN MEDICAL BENEFITS AND 1500 IN CHILDCARE BENEFITS SINCE EACH PARTICIPANT CAN REMAIN IN THE PROGRAM FOR TWO YEARS THIS COST WOULD RISE TO 33600 PER PARTICIPANT AND THAT EXCLUDES THE COSTS OF RECRUITING AND SUPERVISION ALL THESE COSTS WILL GROW IN SUBSEQUENT YEARS IF OTHER ADMINISTRATION PROPOSALS ARE ADOPTED FOR EXAMPLE PRESIDENT CLINTON HAS PROMISED TO INDEX THE MINIMUM WAGE THIS WOULD AUTOMATICALLY RAISE THE FEDERAL CONTRIBUTION TO THE STIPEND THE ADMINISTRATION HEALTH CARE PLAN WILL REPORTEDLY REQUIRE EVERY AMERICAN TO CARRY AN EMPLOYERPROVIDED COMPREHENSIVE HEALTH CARE PACKAGE WHICH COULD EASILY COST 4000 OR 5000 AND AS MANY PARENTS KNOW 1500 DOESN'T BUY MUCH CHILD CARE IT IS LIKELY TO BUY EVEN LESS IN FUTURE YEARS SO PROGRAM COSTS WHICH THE CLINTON ADMINISTRATION ESTIMATES WILL GROW FROM 394 MILLION IN FISCAL 1994 TO 34 BILLION IN FISCAL 1997 ARE CERTAIN TO SPIRAL BEYOND CURRENT PROJECTIONS MR CLINTON HOPES TO GET A HANDLE ON THESE COSTS BY LIMITING THE NUMBER OF PARTICIPANTS TO 25000 IN THE FIRST YEAR AND TO 150000 IN FISCAL 1998 BUT THAT WILL BE HARD TO DO ESPECIALLY SINCE THE BENEFITS OF THIS PROGRAM ARE SO GENEROUS RELATIVE TO OTHER FORMS OF COLLEGE ASSISTANCE INDEED THE PRESIDENT PARED BACK THE ORIGINAL LOAN FORGIVENESS AMOUNT TO 5000 FROM 6500 BECAUSE IT WOULD HAVE BEEN MORE GENEROUS THAN PROGRAMS FOR VETERANS STILL THE 5000 FIGURE IS MORE THAN TRIPLE THE AMOUNT THAT STUDENTS FROM POOR FAMILIES RECEIVE THROUGH PELL GRANTS AND NEARLY DOUBLE THE AVERAGE AMOUNT STUDENTS CAN BORROW THROUGH THE GUARANTEED STUDENT LOAN PROGRAM STUDENTS BENEFITING FROM THESE TWO PROGRAMS WHICH HAVE 32 MILLION AND 39 MILLION PARTICIPANTS RESPECTIVELY WILL WANT TO GET SIMILAR ASSISTANCE THIS WILL CREATE POLITICAL PRESSURES EITHER TO EXPAND THE NATIONAL SERVICE PROGRAM OR TO PROVIDE MORE GENEROUS ASSISTANCE TO STUDENTS IN OTHER PROGRAMS OR BOTH IN ANY EVENT TAXPAYERS CAN EXPECT HIGHER BILLS WHERE WILL NATIONALSERVICE PARTICIPANTS BE ASSIGNED SOME OF THEM WILL BE SENT TO NONPROFIT AGENCIES ENGAGED IN PROGRAMS THAT ADDRESS UNMET HUMAN EDUCATIONAL ENVIRONMENTAL OR PUBLIC SAFETY NEEDS POLITICIANS AND BUREAUCRATS WILL HAVE TO DECIDE WHICH PROGRAMS MEET THIS DEFINITION MANY PARTICIPANTS WILL END UP IN GOVERNMENT JOBS ALTHOUGH THE BILL WOULD NOT ALLOW THEM TO MOVE INTO POSITIONS THAT ARE ALREADY ON THE BOOKS THE GOVERNMENT WILL HAVE TO CREATE MAKEWORK JOBS JUST FOR THEM ADDING FURTHER TO THE PROGRAM'S COSTS PERHAPS THE MOST INCALCULABLE COST OF DEPLOYING AN ARMY OF PAID VOLUNTEERS IN COMMUNITIES THROUGHOUT THE NATION IS THE EFFECT IT COULD HAVE ON AMERICA'S SPIRIT OF VOLUNTARISM THE PROGRAM HAS THE POTENTIAL TO ENGENDER RESENTMENT AMONG THE TENS OF MILLIONS OF AMERICANS WHO ARE WORKING TO IMPROVE THEIR COMMUNITIES AND ASKING NOTHING IN RETURN IT WILL ALSO INSTILL IN YOUNG PEOPLE THE IDEA THAT THE GOVERNMENT OWES THEM SOMETHING WHEN THEY DEVOTE THEMSELVES TO COMMUNITY SERVICE MR NICKLES A REPUBLICAN IS THE JUNIOR SENATOR FROM OKLAHOMA