WASHINGTON GOLDMAN SACHS & CO IS BEING INVESTIGATED FOR ALLEGEDLY SIDESTEPPING FEDERAL ETHICS RULES TO SECURE A COVETED UNDERWRITING ROLE IN THE CLEANUP OF THE LARGEST SAVINGS AND LOAN EVER TAKEN OVER BY THE GOVERNMENT ABSENT A WAIVER OF THOSE RULES THE TRANSACTION WOULD OTHERWISE HAVE GONE TO A COMPETITOR OF THE NEW YORK INVESTMENT BANK THE RESOLUTION TRUST CORP IS REVIEWING THE MATTER SAID MARK BLUMENTHAL THE AGENCY'S ACTING MANAGER OF CONTRACTOR ETHICS OFFICIALS AT GOLDMAN DECLINED PUBLIC COMMENT BUT THEY INDICATED PRIVATELY THAT THEY BELIEVE THE RTC HAS HELD THEM TO THE HIGHEST ETHICAL STANDARDS FOR THEIR WORK ON HOMEFED BANK OF SAN DIEGO WHICH COLLAPSED LAST SUMMER AT A COST TO TAXPAYERS ESTIMATED AT 2 BILLION GOLDMAN WAS PICKED TO SERVE AS THE RTC'S FINANCIAL ADVISER IN THE SEIZURE AND SALE OF HOMEFED A CONTRACT POTENTIALLY WORTH 20 MILLION THE ORIGINAL CONTRACT DID NOT PROVIDE THAT GOLDMAN WOULD SERVE AS AN UNDERWRITER BUT THE DOOR WAS OPENED IN JULY 1992 WHEN THE RTC SHIFTED RESOLUTION STRATEGIES RAISING THE PROSPECT THAT GOLDMAN WOULD NOT GET ALL OF THE FEES FIRST ENVISIONED AT GOLDMAN'S URGING THE RTC REWROTE THE CONTRACT TO HOLD THE FIRM HARMLESS IN THE PROCESS GOLDMAN WAS CUT IN AS AN UNDERWRITER AGENCY ETHICS RULES GUARD AGAINST CIRCUMSTANCES IN WHICH A CONTRACTOR RESPONSIBLE FOR ADVISING ON SALES AND PRICING STRATEGIES WOULD BE IN A POSITION TO PURCHASE THOSE SAME ASSETS AN UNDERWRITER PURCHASES ALBEIT ON A WHOLESALE BASIS SECURITIES FOR RESALE AT A PROFIT UNDER LIMITED CIRCUMSTANCES THOSE RULES CAN BE WAIVED FOR THE TRANSACTION IN DECEMBER INVOLVING 1 BILLION IN HOMEFED RESIDENTIAL LOANS GOLDMAN EARNED 29 MILLION AS AN UNDERWRITER WITHOUT OBTAINING A WAIVER ACCORDING TO THE ETHICS OFFICE GOLDMAN REQUESTED A WAIVER BUT ONE WASN'T APPROVED BECAUSE GOLDMAN FAILED TO RESPOND TO A REQUEST FOR FURTHER INFORMATION THE OFFICE SAID IF THEY DID THE WORK THEN THEY DID IT IN VIOLATION OF THE RULES MR BLUMENTHAL SAID 9307200120 930720 RETAILING AS SHOPPERS' DEBTS AND PESSIMISM MOUNT STORES START TO LOSE THE CHRISTMAS SPIRIT BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL THERE IS NO NEED FOR SANTA CLAUS TO PUT HIS ELVES ON OVERTIME THE NATION'S RETAILERS ARE EXPECTING THRIFTY DEBTLADEN CONSUMERS TO DELIVER LESS THAN BLOCKBUSTER CHRISTMAS SHOPPING SALES THIS YEAR THIS PESSIMISM SOME IN THE INDUSTRY CALL IT REALISM HAS TAKEN HOLD DESPITE STRONG SALES RESULTS IN JUNE RETAILERS' BEST MONTH SO FAR THIS YEAR AND A ROBUST 1992 CHRISTMAS SEASON WHILE IT IS TOO EARLY FOR CONSUMERS TO BEGIN MAKING HOLIDAY SHOPPING PLANS RETAILERS WHO ROUTINELY PLAN SIX MONTHS OR MORE AHEAD ALREADY ARE PLACING ORDERS FOR FALL AND WINTER DELIVERY AND THEIR BUYING ENTHUSIASM IS TEMPERED WE'RE HOLDING BACK A LITTLE BIT THERE'S NO DOUBT ABOUT IT SAYS ALAN RAXTER CHIEF FINANCIAL OFFICER FOR YOUNKERS INC A CHAIN OF 53 MODERATELY PRICED DEPARTMENT STORES IN THE MIDWEST A YEAR AGO WE WERE DEFINITELY MORE OPTIMISTIC RETAILERS DEPEND ON THEIR FISCAL FOURTH QUARTER TYPICALLY NOVEMBER THROUGH JANUARY TO PROVIDE THEM WITH 40 OF THEIR ANNUAL SALES AND AT LEAST 50 OF PROFITS SALES DURING LAST YEAR'S HOLIDAY PERIOD ROSE 8 FROM THE PRIOR SEASON A REMARKABLE UPTICK AFTER THREE YEARS OF WEAK CHRISTMASES WITH CONSUMER SPENDING MAKING UP TWOTHIRDS OF THE ECONOMY THE IMPACT OF EXPECTED TEPID CHRISTMASTIME SALES ALREADY IS REVERBERATING THROUGHOUT THE NATION WE'RE LOSING MANUFACTURING JOBS IN TEXTILES AND APPAREL SAYS SANDRA SHABER AN ECONOMIST WITH WEFA GROUP IN BALACYNWOOD PA THAT IS WEAKENING THE ECONOMY THE OUTLOOK CLEARLY IS LESS MERRY THIS YEAR FEDERATED DEPARTMENT STORES WHICH IN JUNE REGISTERED A STRONG 66 SALES GAIN ON STORES OPEN AT LEAST A YEAR SAYS IT DOESN'T EXPECT TO SEE THAT KIND OF PERFORMANCE CONTINUE THROUGH THE REST OF THE YEAR KMART CORP OFFICIALS SAY THEY ARE EXPECTING ONLY MODEST GROWTH FOR THE CHRISTMAS PERIOD THIS YEAR ANALYSTS ARE EXPECTING CHRISTMAS SALES TO FINISH BETWEEN 3 AND 4 HIGHER THAN A YEAR AGO ONLY SLIGHTLY HIGHER THAN THE EXPECTED RATE OF INFLATION JUNE'S SALES ADVANCES ALREADY ARE BEING WRITTEN OFF AS THE SUMMIT OF 1993 RETAIL SPENDING JUNE'S SALES MAY WELL HAVE BEEN THE STRONGEST MONTH OF THE YEAR SAYS DANIEL D BARRY A RETAIL ANALYST WITH MERRILL LYNCH & CO MORE SPECIFICALLY ANALYSTS EXPECT THAT WHILE HOME FURNISHINGS WILL CONTINUE TO BE POPULAR AMONG CONSUMERS APPAREL SALES WILL CONTINUE TO STRUGGLE THE APPAREL THAT DOES SELL WELL WILL HAVE TO BE MODESTLY PRICED ANALYSTS SAY RETAILERS ARE BRACING THEMSELVES FOR A TOUGH SECOND HALF OF THE YEAR SAYS KURT BARNARD PUBLISHER OF INDUSTRY TRADE PUBLICATION RETAIL MARKETING REPORT THE CAUTION STEMS FROM DECLINING CONSUMER CONFIDENCE WHICH FELL TO AN EIGHTMONTH LOW IN JUNE AND THE SLOW PACE OF THE NATION'S ECONOMIC EXPANSION HE SAYS CAUTION IS IN ORDER BECAUSE 1993 HAS BEEN ONE OF THE LEAST PREDICTABLE YEARS FOR RETAILERS IN MEMORY IT OPENED WITH GREAT HOPE AFTER CHRISTMAS 1992 THE FIRST STRONG SHOPPING PERIOD SINCE 1989 BUT POSTELECTION EUPHORIA SOON WORE OFF BAD OR UNSEASONABLE WEATHER PLAGUED MUCH OF THE NATION AND AMERICANS BECAME SKITTISH BECAUSE OF THE PROSPECT OF MORE TAXES OF HIGHER HEALTHCARE COSTS AND OF INCREASED GOVERNMENT GRIDLOCK NEARLY ALL SECTORS OF THE US RETAIL WORLD ARE PREPARED FOR A LACKLUSTER CHRISTMAS SEASON IN THIS YEAR'S FOURTH QUARTER WE'RE TALKING ABOUT 2 TO 3 SALES GAINS OVER LAST YEAR'S FOURTH QUARTER IN STORES OPEN AT LEAST ONE YEAR SAYS A FEDERATED SPOKESWOMAN SHE ADDS THAT IT WOULD BE NAIVE TO EXPECT A REPEAT OF LAST CHRISTMAS IT'S GOING TO BE A TOUGH CHRISTMAS SAYS JANET MANGANO A RETAILING ANALYST FOR BURNHAM SECURITIES INC EVEN IF CONSUMERS START FEELING MORE POSITIVE BY THEN RAPIDLY ESCALATING CONSUMERDEBT LEVELS WHICH RECORDED A 10TH CONSECUTIVE MONTHLY INCREASE IN MAY WILL DETER AGGRESSIVE SPENDING SAYS MS MANGANO WE CERTAINLY ARE DEALING WITH A SLOWGROWTH ECONOMY RIGHT NOW SAYS ORREN KNAUER A KMART SPOKESMAN ASSUMING THAT THE ECONOMY CONTINUES LIMPING ALONG AND THE TAX NEWS IS NO WORSE THAN CURRENT FORECASTS THEN I THINK IT WILL BE A SATISFACTORY CHRISTMAS NOT A GREAT ONE AS THEY BUY FOR THE CHRISTMAS SEASON RETAILERS ARE ASSEMBLING ASSORTMENTS OF LOWERPRICED MERCHANDISE THEY BELIEVE PENNYPINCHING CONSUMERS WILL PREFER ANALYSTS SAY WHAT WE ARE SEEING IS A VERY CAUTIOUS COMMITMENT TO PLACING ORDERS FOR CHRISTMAS SAYS AN EXECUTIVE VICE PRESIDENT OF A LARGE US APPAREL MANUFACTURER WHO ASKED NOT TO BE NAMED ORDERS ARE BEING PLACED A LITTLE LIGHTER THAN USUAL HE OBSERVES ESPECIALLY FOR GARMENTS CARRYING HOLIDAY MOTIFS ATHLETIC FOOTWEAR MAKER NIKE INC RECENTLY SAID RETAILERS' ORDERS FOR THE CHRISTMAS SEASON BETRAY EXPECTATIONS THAT A DISAPPOINTING SALES PERIOD LIES AHEAD WE'RE NOT BEING SURPRISED BY BIGGER ORDERS THAN WE THOUGHT WE WOULD GET LAMENTS ELBERT O HAND CHAIRMAN OF APPAREL MANUFACTURER HARTMARX CORP OF CHICAGO RETAILERS' ORDERS FOR THE COMPANY'S WOMEN'S APPAREL AND MEN'S SPORTSWEAR HAVE BEEN CAUTIOUS MR HAND SAYS IF THERE IS A BRIGHT SPOT ANYWHERE IN RETAILING IT IS THE TOY SECTOR ANALYSTS EXPECT TOYS AND VIDEO GAMES COMBINED TO POST A DOUBLEDIGIT SALES INCREASE FOR THE CHRISTMAS HOLIDAYS THAT BUSINESS IS VERY STRONG SAYS GARY M JACOBSON A TOYINDUSTRY ANALYST WITH KIDDER PEABODY & CO MR JACOBSON SAYS TOY RETAILERS WILL BENEFIT FROM THE CURRENT POPULARITY OF SEVERAL LINES INCLUDING MERCHANDISE RELATED TO THE MOVIE JURASSIC PARK AND TELEVISION'S BARNEY THE TALKING DINOSAUR WHEN IT STARTS OUT THIS GOOD THIS EARLY IT BODES WELL FOR CHRISTMAS HE SAYS PEOPLE DON'T USUALLY CUT BACK ON BUYING TOYS FOR THEIR CHILDREN AMONG GENERAL MERCHANDISERS NOT EVERYONE IS GLUM EITHER JC PENNEY CO SAYS IT IS GETTING A POSITIVE RESPONSE FROM THE EARLY MAILINGS OF ITS FALL AND WINTER CATALOG THE PLANO TEXAS RETAILER IS LIKELY TO BENEFIT THIS YEAR FROM DIMINISHED CATALOG COMPETITION RIVAL SEARS ROEBUCK & CO CLOSED ITS CATALOG OPERATIONS IN MAY UPSCALE RETAILER BERGDORF GOODMAN ALSO SAYS IT EXPECTS THE STRONG SALES GAINS IT REGISTERED OVER THE LAST THREE MONTHS TO CONTINUE INTO THE CHRISTMAS PERIOD SAYS CHIEF OPERATING OFFICER STEPHEN ELKINS WE'RE EXPECTING A STRONG CHRISTMAS AND WE HAVE BOUGHT INTO THAT 9307200119 930720 US PANEL RECOMMENDS ESTABLISHING COMMITTEE TO REVIEW AIRLINE FINANCES BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NATIONAL AIRLINE COMMISSION APPROVED A SCALEDBACK PROPOSAL TO INCREASE GOVERNMENT OVERSIGHT OF SICK AIRLINES THE NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY AGREED TO RECOMMEND THAT PRESIDENT CLINTON SET UP A NEW FINANCIAL ADVISORY COMMITTEE THAT WOULD SEEK TO DETERMINE WHETHER AN AIRLINE'S FINANCIAL CONDITION POSES RISKS TO THE PUBLIC OR THE INDUSTRY BUT DECIDING WHAT TO DO NEXT WOULD BE LEFT TO THE SECRETARY OF TRANSPORTATION HE COULD DECIDE TO REVIEW A COMPANY'S BUSINESS CAPITAL OR FINANCIAL PLANS AND RAISE CONCERNS WITH AN AIRLINE'S BOARD THE RECOMMENDATION WOULD BE ONLY A TINY STEP TOWARD REREGULATION SINCE IT WOULDN'T GIVE THE TRANSPORTATION SECRETARY ANY NEW POWERS NEW YORK INVESTMENT BANKER FELIX ROHATYN AND OTHER COMMISSION MEMBERS HAD DISCUSSED GIVING THE GOVERNMENT MORE POWER TO INTERVENE IN AIRLINES' DECISIONS ABOUT THEIR DEBT LOAD AND PRICING BUT COMMISSION MEMBERS VOICED OPPOSITION TO RESTORING GOVERNMENT REGULATION EVEN FOR SICK CARRIERS IN AN INTERVIEW MR ROHATYN SAID HE AND OTHER COMMISSION MEMBERS DECIDED TO LEAVE ASIDE THE PRICING ISSUE BECAUSE THERE WAS SO MUCH DISAGREEMENT ABOUT WHETHER WEAK CARRIERS OR STRONG CARRIERS START DAMAGING FARE WARS WE'D HAVE NEVER GOTTEN OUT OF THAT THICKET HE SAID STILL HE SAID AN AIRLINE'S BOARD MIGHT WELL CHANGE COURSE ON ISSUES LIKE PRICING AND EQUIPMENT PURCHASES AFTER HEARING FROM THE SECRETARY OF TRANSPORTATION MR ROHATYN A SENIOR PARTNER IN THE INVESTMENTBANKING FIRM LAZARD FRERES & CO HUDDLED WITH SOUTHWEST AIRLINES CHAIRMAN HERBERT KELLEHER DURING A LUNCH BREAK YESTERDAY AND TONED DOWN SOME OF THE PROPOSAL'S LANGUAGE IN AN EFFORT TO WIN OVER HIS COLLEAGUES THERE WERE STILL SOME OBJECTIONS THOUGH A FINANCIAL ADVISORY COMMITTEE MADE UP OF FINANCE AND AIRLINEINDUSTRY OFFICIALS WOULD BE THE FOX GUARDING THE CHICKEN HOUSE SAID JOHN PETERPAUL A MACHINISTSUNION OFFICIAL ALL THE PROBLEMS WE'VE GOT ARE THE FAULT OF THOSE TWO GROUPS THE COMMISSION AGREED TO ADD LABOR REPRESENTATIVES TO THE PROPOSED ADVISORY COMMITTEE OTHERS QUESTIONED WHETHER AN IMPARTIAL ADVISORY COMMITTEE COULD BE FOUND OR WHETHER ONE WAS NEEDED I'M WORRIED YOU'LL END UP WITH KIND OF A BUNCH OF KIBBITZERS SAID JOHN E ROBSON A MEMBER OF THE COMMISSION WHO HELPED ENGINEER AIRLINE DEREGULATION AS CHAIRMAN OF THE CIVIL AERONAUTICS BOARD IN THE 1970S I'D ARGUE THAT THE SECRETARY OF TRANSPORTATION SHOULD HAVE BEEN A KIBBITZER WHEN NORTHWEST AIRLINES AND TRANS WORLD AIRLINES STRETCHED THEIR BALANCE SHEETS WITH LEVERAGED BUYOUTS MR ROHATYN RESPONDED BECAUSE THE PROPOSAL WOULDN'T REQUIRE NEW LEGISLATION COMMISSION MEMBERS SAID PRESIDENT CLINTON COULD DECIDE TO SET UP THE FINANCIALADVISORY COMMITTEE ON HIS OWN AND HIS TRANSPORTATION SECRETARY FEDERICO PENA HAS PROVED MORE WILLING THAN SOME PREDECESSORS TO TRY TO INFLUENCE AIRLINES' BUSINESS DECISIONS EARLIER THIS MONTH FOR INSTANCE HE MET WITH NORTHWEST AIRLINES AND ITS UNION LEADERS TO DISCOURAGE THE CARRIER FROM ENTERING CHAPTER 11 BANKRUPTCYLAW PROTECTION EVEN THOUGH THE RECOMMENDATIONS WON'T BECOME FINAL UNTIL AUGUST THE AIRLINE INDUSTRY IS LIKELY TO USE THE COMMISSION'S DELIBERATIONS TO SUPPORT ITS POSITION ON VARIOUS PET ISSUES FOR INSTANCE THE COMMISSION AGREED YESTERDAY THAT THE GOVERNMENT SHOULD ROLL BACK TAXES ON AIRLINES AND EXEMPT THEM FROM ANY NEW FUEL TAX THAT FEDERAL REGULATORS SHOULDN'T FORCE AIRLINES TO TEST MORE THAN A SMALL PERCENTAGE OF THEIR CREWS FOR ALCOHOL USE AND THAT THE GOVERNMENT SHOULD CONSIDER LIFTING THE LANDING LIMITS AT CHICAGO'S O'HARE INTERNATIONAL AIRPORT AND THREE OTHER AIRPORTS BUT THE COMMISSION REJECTED AN INVESTMENT TAX CREDIT TO HELP AIRLINES REFURBISH OR REPLACE PLANES THE COMMISSION IS ALSO RECOMMENDING THAT A CONSORTIUM OF GOVERNMENT AND AIRLINEINDUSTRY INTERESTS TAKE OVER THE FEDERAL AVIATION ADMINISTRATION'S MUCHDELAYED EFFORT TO MODERNIZE ITS AIR TRAFFIC CONTROL SYSTEM 9307200118 930720 LAW LEGAL BEAT COURT ALLOWS MOVIE INDUSTRY BIG TAX BENEFIT BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL TALK ABOUT SPECIAL EFFECTS THE FILM INDUSTRY HAS DEVELOPED THE ABILITY TO TRANSFORM TOMORROW'S POSSIBLE EXPENSES INTO TODAY'S ACTUAL TAX DEDUCTIONS THIS BIT OF MOVIE MAGIC ISN'T A MATTER OF NEW TECHNOLOGY BUT OF NEW LAW IN A RECENT DECISION A FEDERAL APPEALS COURT IN CALIFORNIA RULED THAT CERTAIN ANTICIPATED COSTS OF MAKING A FILM SUCH AS PAYMENTS TO STARS BASED ON A PERCENTAGE OF THE FILM'S PROFIT CAN BE BOOKED BEFORE THE PAYMENTS ARE MADE PREVIOUSLY MOVIE STUDIOS LIKE MOST COMPANIES WEREN'T PERMITTED TO TAKE DEDUCTIONS FOR DEPRECIATION COSTS THAT HADN'T YET OCCURRED BUT THE COURT SAID THIS SITUATION PUT THE STUDIOS AT AN UNFAIR DISADVANTAGE GIVEN CERTAIN ARCANE TAX RULES THAT APPLY SPECIFICALLY TO ENTERTAINMENT COMPANIES AND SLOW DOWN THE WAY DEPRECIATION IS RECOGNIZED THE DECISION HELPS CORRECT THE INEQUITY ENTERTAINMENT LAWYERS SAID THE RULING IS EXPECTED TO SAVE SOME STUDIOS TENS OF MILLIONS OF DOLLARS IN TAXES A YEAR LAWYERS SAID THAT THE MORE PROFITABLE THE COMPANY THE GREATER THE LIKELY TAX SAVINGS AS A RESULT OF THE DECISION THIS IS IMPORTANT TO THE MOVIE BUSINESS SAID BURT FORESTER A PARTNER AT PRICE WATERHOUSE WHO SPECIALIZES IN ENTERTAINMENT INDUSTRY ACCOUNTING IT WILL CERTAINLY GIVE THE STUDIOS A GREATER AMOUNT OF CASH WITH WHICH TO MAKE FILMS FOR THEIR BIGGEST PROJECTS MAJOR STUDIOS TYPICALLY PAY AS MUCH AS 40 OF A FILM'S TOTAL PROFIT TO SOCALLED PROFIT PARTICIPANTS ACTORS DIRECTORS AND OTHER TALENT POWERFUL ENOUGH TO DEMAND A SHARE OF A FILM'S NET INCOME IN ADDITION TO THEIR SALARY ADDITIONALLY A PORTION OF A FILM OR TELEVISION SHOW'S REVENUE GOES TO MOVIE AND TELEVISION TALENT IN PAYMENTS KNOWN AS RESIDUALS FOR THE ONGOING SALES OR USE OF THEIR PRODUCT MOST FILMS TAKE IN THE BULK OF THEIR TOTAL EARNINGS WITHIN A FEW WEEKS AFTER THEY ARE RELEASED AND THIS INCOME IS TAXED AT THAT TIME HOWEVER THE PROFIT PARTICIPANTS AND UNIONS OFTEN DON'T START GETTING PAID UNTIL FUTURE YEARS THIS CREATED A HUGE UPFRONT TAX BURDEN WITHOUT A CORRESPONDING OPPORTUNITY TO CLAIM CERTAIN OF THE COSTS AS DEDUCTIONS ENTERTAINMENT LAWYERS SAID IN ANY GIVEN YEAR MAJOR STUDIOS PROBABLY PAY ABOUT 100 MILLION TO PROFIT PARTICIPANTS AND SOMEWHAT LESS IN RESIDUALS THE LAWYERS ADDED MR FORESTER SAID THE COURT'S DECISION MADE SENSE BECAUSE IT BASES DEDUCTIBILITY ON ESTIMATES OF THE FILM'S TOTAL REVENUE WHICH HE SAID ARE SURPRISINGLY ACCURATE AS EARLY AS TWO WEEKS AFTER THE RELEASE DATE THE DECISION MADE BY A 21 VOTE OF THE APPEALS COURT IS LIKELY TO HAVE ITS MOST IMMEDIATE IMPACT ON STUDIOS WITH CURRENT BLOCKBUSTERS SAID ENTERTAINMENT TAX LAWYER ALAN KIRIOS THE FIRST CHECKS TO THE PROFIT PARTICIPANTS IN THIS SUMMER'S HITS WON'T LIKELY BE MAILED UNTIL THE BEGINNING OF NEXT YEAR UNDER AN INTERNAL REVENUE SERVICE POLICY WHICH THE COURT REJECTED STUDIOS WOULD HAVE HAD TO WAIT UNTIL THE END OF 1994 TO CLAIM DEDUCTIONS NOW THEY CAN CLAIM THEM THIS YEAR THE SAME APPLIES FOR ANTICIPATED RESIDUALS WHICH MAY NOT BE PAID FOR A NUMBER OF YEARS THIS RULING ACCELERATES DEDUCTIONS CONSIDERABLY SAID MR KIRIOS A PARTNER AT THE BEVERLY HILLS CALIF LAW FIRM WEISSMAN WOLFF BERGMAN COLEMAN & SILVERMAN STUDIO EXECUTIVES AND THEIR LAWYERS WOULDN'T PREDICT EXACTLY HOW MUCH THEY WOULD SAVE BUT ENTERTAINMENT LAWYERS ESTIMATED THAT PROFIT PARTICIPANTS IN A HIT MOVIE SUCH AS THE FIRM WHICH ALREADY HAS EARNED 96 MILLION AT THE BOX OFFICE ARE PROBABLY ENTITLED TO ABOUT 10 MILLION CLAIMING A DEDUCTION FOR THAT SUM THIS YEAR COULD THEN SAVE THE MOVIE'S DISTRIBUTOR PARAMOUNT PICTURES ABOUT 4 MILLION A SPOKESMAN FOR THE PARAMOUNT COMMUNICATIONS CO UNIT SAID THE STUDIO COULDN'T COMMENT ON THE MOVIE'S FEE STRUCTURE OR ON THE IMPACT OF THE COURT'S DECISION ON THE COMPANY THE RULING DOESN'T APPLY TO SOCALLED GROSS PARTICIPANTS WHO HAVE SO MUCH CLOUT THAT THEY CAN DEMAND A SHARE OF A FILM'S TOTAL BOX OFFICE TAKE TOM CRUISE STAR OF THE FIRM REPORTEDLY NEGOTIATED FOR A PERCENTAGE OF THE MOVIE'S GROSS RECEIPTS THE DECISION CAME IN A NEARLY 20YEAROLD DISPUTE INVOLVING TRANSAMERICA CORP THE SAN FRANCISCO FORMER PARENT OF UNITED ARTISTS WHICH CLAIMED IT WAS ENTITLED TO A REFUND FOR TAXES PAID FROM 1971 TO 1974 AS A RESULT OF THE RULING TRANSAMERICA STANDS TO RECEIVE 4 MILLION FROM THE IRS SAID CAMERON W WOLFE JR A PARTNER AT THE SAN FRANCISCO LAW FIRM ORRICK HERRINGTON & SUTCLIFFE WHO ARGUED THE CASE FOR TRANSAMERICA HE SAID THE DECISION LIKELY MEANS THAT THE COMPANY COULD RECOUP AN ADDITIONAL AMOUNT OF MONEY SUBSTANTIALLY MORE THAN THE 4 MILLION IN A RELATED CASE A SPOKESWOMAN FOR THE DEPARTMENT OF JUSTICE WHICH ARGUED THE CASE SAID THE GOVERNMENT IS CONSIDERING ITS OPTIONS AND MAY APPEAL IN A VICTORY FOR GAYRIGHTS ADVOCATES COLORADO'S HIGHEST COURT REFUSED TO LIFT AN INJUNCTION AGAINST A 1992 STATE LAW BANNING LEGAL PROTECTIONS FOR GAYS BASING ITS DECISION ON WHAT IT CALLED A FUNDAMENTAL RIGHT TO PARTICIPATE EQUALLY IN THE POLITICAL PROCESS THE STATE SUPREME COURT RULED 61 THAT THE LAW IS PROBABLY UNCONSTITUTIONAL THE LAW APPROVED LAST YEAR BY COLORADO VOTERS IN A BALLOT MEASURE KNOWN AS AMENDMENT 2 STOPS THE STATE AND ITS CITIES FROM PASSING LAWS OR ENFORCING EXISTING LAWS THAT PROTECT LESBIANS GAY MEN AND BISEXUALS FROM DISCRIMINATION IN ISSUING THE INJUNCTION A LOWER COURT HAD DECLARED THAT FREEDOM FROM STATESANCTIONED BIAS IS A FUNDAMENTAL RIGHT PROTECTED BY THE CONSTITUTION THE HIGH COURT USED A DIFFERENT REASONING THAT DREW FROM US SUPREME COURT RULINGS ON REAPPORTIONMENT CANDIDATE ELIGIBILITY AND UNLAWFUL PRECONDITIONS TO VOTING THE EQUAL PROTECTION CLAUSE GUARANTEES THE FUNDAMENTAL RIGHT TO PARTICIPATE EQUALLY IN THE POLITICAL PROCESS THE COURT SAID THIS PRINCIPLE IS WHAT UNIFIES THE CASES IN SPITE OF THE DIFFERENT FACTUAL AND LEGAL CIRCUMSTANCES PRESENTED IN EACH OF THEM THE COURT SAID THE COLORADO LAW ORIGINALLY INTENDED TO GO INTO EFFECT IN JANUARY ALTERS THE POLITICAL PROCESS SO THAT LESBIANS AND GAY MEN CAN'T GET LEGISLATIVE OR JUDICIAL REDRESS FROM DISCRIMINATION NO OTHER IDENTIFIABLE GROUP FACES SUCH A BURDEN THE COURT SAID A FULL HEARING ON CONSTITUTIONALITY IS SCHEDULED FOR OCTOBER THE COURT ALSO UPHELD A LEGAL STANDARD UNDER WHICH THE ATTORNEY GENERAL WILL HAVE TO SHOW A COMPELLING JUSTIFICATION FOR THE LAW WE HAVE FOUGHT AND WON THE MAJOR BATTLE SAID SUZANNE GOLDBERG STAFF ATTORNEY FOR THE GAYRIGHTS LAMBDA LEGAL DEFENSE AND EDUCATION FUND STATE ATTORNEY GENERAL GALE A NORTON SAID THE STATE IS CONSIDERING AN APPEAL TO THE US SUPREME COURT UNDER THE REASONING IN THE DECISION SHE SAID CERTAIN ISSUES COULDN'T VALIDLY BE DECIDED BY A STATEWIDE CONSTITUTIONAL AMENDMENT THIS DOES DEPART FROM WHERE THE US SUPREME COURT HAS BEEN IN THE PAST ON CASES LIKE THIS SHE SAID A FORMER PARALEGAL AT SKADDEN ARPS SLATE MEAGHER & FLOM WHO ADMITTED TO TAKING THE JOB TO GARNER INSIDE INFORMATION ABOUT PENDING DEALS WAS SENTENCED TO THREE YEARS OF PROBATION AND 300 HOURS OF COMMUNITY SERVICE CHRISTOPHER J GARVEY A 1989 GRADUATE OF HARVARD COLLEGE WHO PLEADED GUILTY LAST YEAR FOR HIS ROLE IN THE SCHEME ASKED NOT TO BE SENT TO PRISON SO HE COULD ATTEND MEDICAL SCHOOL THIS FALL IN IMPOSING A SENTENCE THAT DIDN'T INVOLVE PRISON TIME US DISTRICT JUDGE LAWRENCE M MCKENNA SAID THAT HE HAD RARELY SEEN A DEFENDANT WHO HAS MORE FULLY REALIZED THE WRONG HE'S DONE THE INSIDER TRADING SCHEME IN WHICH MR GARVEY BECAME INVOLVED AS SOON AS HE GRADUATED FROM HARVARD WAS BRAZEN AND SIMPLE WHILE STILL AT SCHOOL MR GARVEY SOUGHT A JOB IN SKADDEN'S HUGE MERGERS AND ACQUISITIONS DEPARTMENT ONCE THERE HE GAVE THE INFORMATION HE GLEANED FROM WORKING AT SKADDEN TO A BOYHOOD FRIEND DARRIN GLEEMAN WHO USED IT TO TRADE ON DEALS MR GLEEMAN WHO WAS A 1988 COLLEGE GRADUATE OF THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA ADMITTED TO COMING UP WITH THE PLAN MR GLEEMAN ALSO GOT HIS FATHER SEYMOUR GLEEMAN INVOLVED IN THE SCHEME BY SENDING HIM TO EUROPE TO SET UP THE TRADING ACCOUNTS THE TWO GLEEMANS PLEADED GUILTY TO INSIDER TRADINGRELATED CRIMES AND ARE AWAITING SENTENCING JUNDA WOO AND JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9307200117 930720 CANADIAN STEELMAKERS SHOW STRONG GROWTH IN 2NDQUARTER PROFITS TORONTO A STRONG AUTO SECTOR AND HIGHER STEEL PRICES LED TO SHARPLY IMPROVED FINANCIAL RESULTS FOR THREE OF CANADA'S LARGEST STEEL PRODUCERS AND ANALYSTS ARE EXPECTING FURTHER GAINS THIS YEAR STELCO INC BASED IN HAMILTON ONTARIO REPORTED A SECONDQUARTER LOSS OF 13 MILLION CANADIAN DOLLARS US102 MILLION IN LAST YEAR'S SECOND QUARTER THE COMPANY HAD A LOSS OF C33 MILLION WHICH INCLUDED A PRETAX GAIN OF C17 MILLION THE DEGREE OF IMPROVEMENT WAS SOMEWHAT OF A SURPRISE SAID MARGARET CORNISHKEHOE A STEEL ANALYST AT SCOTIAMCLEOD INC IN TORONTO STELCO'S SHIPMENTS CLIMBED 7 TO 114 MILLION TONS IN THE SECOND QUARTER AS DEMAND GREW FOR STRIP GALVANIZED AND ROD AND BAR PRODUCTS STELCO SAID MOST OF ITS ORDER BOOKS ARE FULL AND IT EXPECTS FURTHER FINANCIAL IMPROVEMENTS THIS YEAR STELCO COULD RETURN TO A BREAKEVEN LEVEL BY THE FOURTH QUARTER MS CORNISHKEHOE SAID COSTEEL INC OF TORONTO SAID SUBSTANTIAL PRICE HIKES IN THE US UNITED KINGDOM AND FAR EAST FAR OUTWEIGHED A DECLINE IN SECONDQUARTER SHIPMENTS WHICH FELL 6 TO 629000 TONS EARNINGS IN THE QUARTER SOARED TO C102 MILLION FROM C11 MILLION A YEAR EARLIER THE JUMP IN PROFIT WAS LARGELY EXPECTED ANALYSTS SAID COSTEEL SAID US AND UK MARKETS SHOULD CONTINUE TO IMPROVE BUT EARNINGS COULD BE HELD BACK BY SUMMER SLOWDOWNS AND LESS ACTIVITY IN THE FAR EAST IPSCO INC BASED IN REGINA SASKATCHEWAN REPORTED A SECONDQUARTER PROFIT OF C41 MILLION COMPARED WITH A LOSS OF C18 MILLION IN THE QUARTER LAST YEAR HIGHER HOTROLLED COIL AND BAR SALES IN CANADA AND HEAVY PLATE SALES IN NORTH AMERICA LED A 30 INCREASE IN SHIPMENTS WHICH TOTALED 225300 TONS IN THE SECOND QUARTER ANALYSTS ARE ALSO EXPECTING IMPROVED RESULTS FOR DOFASCO INC OF HAMILTON ONTARIO CANADA'S LARGEST STEEL PRODUCER WHICH HASN'T YET REPORTED EARNINGS FOR THE SECOND QUARTER 9307200116 930720 PRIZE PACKAGES WHEN IT COMES TO PAY HEADS OF LITTLE FIRMS CAN OUTDO TOP CEOS RISKTAKING FOUNDERS SCORE WHEN THE BUSINESSES DO DRAWING FEW COMPLAINTS MR FILIPOWSKI'S BIG CHECK BY UDAYAN GUPTA AND BRENT BOWERS STAFF REPORTERS OF THE WALL STREET JOURNAL SOME OF THE NUMBERS IN THE EXECUTIVEPAY DEBATE OF RECENT YEARS HAVE BEEN STARTLING AN 81 MILLION STOCK GRANT FOR COCACOLA CO CHAIRMAN ROBERTO GOIZUETA IN 1991 78 MILLION IN ONE YEAR FOR THE LATE TIME WARNER INC CHAIRMAN STEVEN ROSS AND LAST YEAR'S BIGGEST PAYOUT 127 MILLION FOR THOMAS F FRIST JR OF HCAHOSPITAL CORP OF AMERICA HEFTY AS THOSE CHECKS ARE THEY ADD UP TO A SMALL FRACTION OF THE REVENUES AND EARNINGS OF THE BILLIONDOLLAR COMPANIES PAYING THEM IT IS A DIFFERENT STORY AT PLATINUM TECHNOLOGY INC PLATINUM DID 49 MILLION IN SALES LAST YEAR AND EARNED 93 MILLION ITS CHAIRMAN ANDREW FILIPOWSKI TOOK HOME 139 MILLION COUNTING OPTIONS GAINS FOR ALL THE HUE AND CRY ABOUT FAMOUS EXECUTIVES' COMPENSATION MANY OF THE SWEETEST DEALS GO TO OFFICERS OF SMALL PUBLIC COMPANIES OBSCURE TO MOST PEOPLE AND WHILE THE CELEBRATED CASES HAVE TRIGGERED PRESSURE ON DIRECTORS LOBBYING BY SHAREHOLDER GROUPS AND NEW DISCLOSURE RULES FROM THE SECURITIES AND EXCHANGE COMMISSION LUCRATIVE DEALS AT LITTLE COMPANIES GENERALLY DRAW NEITHER ATTENTION NOR CRITICISM THIS IS JUST AS IT SHOULD BE IN MR FILIPOWSKI'S VIEW UNLIKE THE BRAINDEAD GUYS FROM HARVARD WHO RUN GIANT COMPANIES HE HAS HAD TO TAKE MIGHTY RISKS IN BUILDING THE OAKBROOK TERRACE ILL SOFTWARE FIRM FROM THE GROUND UP HE SAYS THE SON OF POOR POLISH IMMIGRANTS MR FILIPOWSKI 42 YEARS OLD FEELS HE HAS ACHIEVED THE AMERICAN DREAM AS A RESULT I AM ABSOLUTELY BAFFLED BY THESE PERVERTED SOCIALISTIC MORALISTIC ISSUES THAT MAKE SOME PEOPLE SO JEALOUS AND GREEDY THEY'D WANT SOMEBODY IN THE US NOT TO SUCCEED HE DECLARES YET MR FILIPOWSKI MADE MORE IN SALARY AND BONUSES 13 MILLION THAN DID THE CHIEF EXECUTIVES OF DUPONT CO OR KELLOGG CO LAST YEAR ADD HIS 126 MILLION OF OPTIONS GAINS AND HE WOULD HAVE MADE BUSINESS WEEK'S LIST OF THE 20 HIGHESTPAID CHIEF EXECUTIVES EXCEPT THAT THE MAGAZINE LIMITS ITS SURVEY TO LARGE CORPORATIONS SO DOES THE WALL STREET JOURNAL'S ANNUAL SURVEY OF EXECUTIVE PAY OTHER MONITORS OF COMPENSATION ACTIVIST DIRECTORS AND SHAREHOLDERS ALSO FOCUS ON LARGE FIRMS NOTES THOMAS LARSEN OF DESAI CAPITAL MANAGEMENT IF YOU APPLY THE SCREWS TO A GENERAL MOTORS YOU CAN SET AN EXAMPLE BUT THERE ISN'T MUCH LEVERAGE WITH A SMALL COMPANY AS A RESULT THE HIGHPAID CEO OF A SMALL COMPANY OFTEN A FOUNDER WHO CONTINUES TO RUN HIS BUSINESS ALMOST LIKE A PERSONAL FIEF AFTER IT HAS GONE PUBLIC MAY NOT REALLY HAVE TO ANSWER TO ANYBODY MR FILIPOWSKI OWNS ABOUT 21 OF PLATINUM TECHNOLOGY JUST BEHIND AN INVESTMENT GROUP THAT HAS 23 SHAREHOLDERS DON'T OBJECT TO MR FILIPOWSKI'S TAKE SAYS JAMES COWIE A VENTURE CAPITALIST WHO IS ON THE BOARD BECAUSE THE FOUNDER AND CEO HAS INCREASED THE VALUE OF THEIR HOLDINGS PLATINUM TECHNOLOGY'S EARNINGS DOUBLED IN 1992 AND A CHART IN ITS LATEST PROXY STATEMENT SHOWS HOW 100 INVESTED IN THE FIRM WHEN IT WENT PUBLIC IN APRIL 1991 WOULD HAVE BEEN WORTH 270 AT THE END OF 1992 ALTHOUGH THAT WAS LESS THAN AT THE END OF 1991 THE SAME INVESTMENT IN THE HAMBRECHT & QUIST SOFTWARE SECTOR INDEX WOULD HAVE GROWN TO 164 AT THE END OF 1992 THE PROXY SAYS STILL MR FILIPOWSKI'S SALARYANDBONUS PACKAGE WAS MORE THAN FIVE TIMES THE AVERAGE FOR COMPANIES IN PLATINUM'S 50 MILLIONAYEAR REVENUE RANGE SAYS JUDE RICH CHAIRMAN OF SIBSON & CO A PRINCETON NJ CONSULTING FIRM TAKING THAT MUCH OUT OF CASH FLOW CAN HAVE A HELL OF AN IMPACT ON COMPETITIVE POSITION HE BELIEVES BUT MR FILIPOWSKI HAS COMPANY GREGORY FISCHBACH RUNS ACCLAIM ENTERTAINMENT INC AN OYSTER BAY NY VIDEOGAME SOFTWARE COMPANY WITH SALES OF 215 MILLION LAST YEAR HIS SALARY AND BONUS CAME TO 15 MILLION THAT IS MORE THAN TWICE WHAT THE CHAIRMAN OF DEERE & CO GOT FOR RUNNING A 69 BILLION COMPANY OTHER EXAMPLES THE HEAD OF US BANCORP DREW A SMALLER SALARYANDBONUS PACKAGE LAST YEAR THAN DID THE TOP OFFICIALS OF OPTI INC A SANTA CLARA CALIF CHIP MAKER HERO GROUP LTD A NEW YORK APPAREL MAKER AND LONGHORN STEAKS INC AN ATLANTA RESTAURANT CHAIN ALL OF THESE SMALLCOMPANY CEOS ALSO ARE FOUNDERS OR COFOUNDERS AS SUCH IT COULD BE ARGUED THAT THEIR PRESENCE IS ESPECIALLY IMPORTANT AND PERHAPS CRUCIAL TO THE FUNCTIONING OF THEIR COMPANIES MOST OF THE SMALL COMPANIES WHOSE CHIEFS REAP GIANT REWARDS AREN'T MATURE BUSINESSES BUT YOUNG GROWTH COMPANIES OFTEN ONES THAT HAVE RECENTLY BEGUN TO PAY OFF AFTER YEARS OF STRUGGLE AT ACCLAIM FOR INSTANCE NET INCOME IN THE LATEST QUARTER ROSE 93 YOU'RE TALKING OF HIGHRISK SITUATIONS WHERE FAILURES ARE IMMENSE SAYS RAJIV TANDON DIRECTOR OF THE INSTITUTE FOR VENTURE MANAGEMENT AT THE UNIVERSITY OF ST THOMAS MINNEAPOLIS IN THE LEAN EARLY YEARS FOUNDERS OFTEN CONSERVE CASH BY PAYING THEMSELVES MODEST SALARIES B UT TONS OF STOCK AND STOCK OPTIONS IF THE BUSINESS FLOPS THIS COMPENSATION WILL BE WORTH NOTHING WILLIAM GATES NOW RANKED AS ONE OF AMERICA'S RICHEST MEN TOOK JUST 133000 OUT OF MICROSOFT CORP IN 1985 THE YEAR IT WENT PUBLIC IT DOESN'T BOTHER ME THAT CEOS MAKE A LOT OF MONEY AS LONG AS THE COMPANY GROWS SAYS MR LARSEN THE MONEY MANAGER EVEN SO HE AND OTHERS WORRY THAT A LACK OF CONTROLS GIVES SMALLCOMPANY FOUNDERCEOS TOO MUCH LEEWAY OFTEN THEY APPOINT UNDERLINGS AND CRONIES TO THEIR BOARDS AS FOUNDERS THEY EXERCISE A PSYCHOLOGICAL AND EMOTIONAL CONTROL OVER THEIR COMPANIES MR LARSEN SAYS OUT OF THE PUBLIC SPOTLIGHT THEY ENJOY A FREEDOM TO PURSUE PRIVATE PASSIONS THAT A BIGCOMPANY CHAIRMAN CAN BUT ENVY TAKE PETER KARMANOS JR COFOUNDER AND CHIEF EXECUTIVE OF COMPUWARE CORP A FARMINGTON HILLS MICH SOFTWARE MAKER THAT WENT PUBLIC LAST DECEMBER HE LIKES HOCKEY LAST YEAR MR KARMANOS RECEIVED CASH COMPENSATION OF 16 MILLION PLUS 432 MILLION IN DEFERRED COMPENSATION HIS COMPANY EARNED 352 MILLION IN THE FISCAL YEAR ENDED MARCH 31 ON REVENUE OF 235 MILLION HE OWNS MORE THAN HALF OF COMPUWARE A STAKE WORTH ABOUT 430 MILLION BUT HE HAS MORE THAN MONEY ON HIS MIND FORMER NATIONAL HOCKEY LEAGUE GOALTENDER JIM RUTHERFORD IS ON THE COMPUWARE PAYROLL RUNNING THE COMPANY'S HOCKEY PROGRAM LAST YEAR THE COMPANY PAID 600000 TO CLOSELY HELD COMPUWARE SPORTS CORP TO PROMOTE AND SPONSOR COMPUWARE'S BUSINESS THE SPORTS COMPANY WHICH IS CONTROLLED BY MR KARMANOS AND TWO OTHER COMPUWARE EXECUTIVES OWNS THE DETROIT JUNIOR RED WINGS OF THE ONTARIO HOCKEY LEAGUE MR KARMANOS DIDN'T RETURN CALLS SEEKING AN INTERVIEW BUT JAMES PROWSE A SENIOR VICE PRESIDENT AND A DIRECTOR AT COMPUWARE CORP SAYS THAT MR KARMANOS'S INTEREST IN HOCKEY HAD NO IMPACT ON ITS OPERATIONS AS FOR THE 600000 SPONSORSHIP IT GIVES US VISIBILITY AND HELPS US RECRUIT MR PROWSE SAYS AT JONES APPAREL CEO SIDNEY KIMMEL IS NEARLY HALF A BILLIONAIRE AFTER SAVING HIS 45OWNED JONES APPAREL GROUP INC FROM FINANCIAL TROUBLE SIX YEARS AGO HIS COMPANION RENA ROWAN A DESIGNER AND EXECUTIVE VICE PRESIDENT OF JONES APPAREL IS DOING WELL TOO AND SHE IS GETTING HER DUE WORKING WOMAN MAGAZINE LAST YEAR NAMED HER THE SECOND HIGHEST PAID FEMALE EXECUTIVE IN THE US IN 1991 AFTER TURI JOSEFSEN EXECUTIVE VICE PRESIDENT OF US SURGICAL CORP WHOSE SALARY AND EXERCISED STOCK OPTIONS CAME TO 236 MILLION MS ROWAN COLLECTED 601 MILLION IN SALARY BONUSES AND STOCKOPTION PROFIT IN 1992 THAT ROSE TO 67 MILLION INCLUDING SALARY AND BONUS OF 700000 SECOND TO MR KIMMEL'S 750000 AND 6 MILLION FROM OPTION GAINS JONES EARNED 413 MILLION LAST YEAR ON REVENUE OF 437 MILLION GERALDINE STUTZ A JONES OUTSIDE DIRECTOR SAYS SHE HAS NO PROBLEM AT ALL WITH THE SIZE OF MS ROWAN'S PAY PACKAGE RENA IS THE DESIGNING AND CREATIVE END OF THIS BUSINESS MS STUTZ SAYS THE SUCCESS OF THE COMPANY IS TO A LARGE EXTENT THE RESULT OF HER TALENT NEITHER MR KIMMEL NOR MS ROWAN RETURNED CALLS AT SOME SMALLER COMPANIES THE REAL OPPORTUNITIES LIE IN STOCKOPTION DEALS ON TERMS THAT FEW BIG COMPANIES DARE OFFER MERWIN KAMINSTEIN CHIEF EXECUTIVE OF BROOKSTONE CO A PETERBOROUGH NH SPECIALTY RETAILER THAT WENT PUBLIC IN MARCH RECEIVED 525000 IN SALARY AND BONUSES LAST YEAR THAT ALONE WAS EQUAL TO MORE THAN 8 OF THE COMPANY'S PROFIT OF 63 MILLION ON REVENUE OF 118 MILLION BUT THE PREVIOUS YEAR WHEN BROOKSTONE HAD A LOSS OF 344 MILLION IT GRANTED THE NEWLY HIRED MR KAMINSTEIN WHO HAD BEEN BROUGHT IN TO SALVAGE A NEARLY BANKRUPT ENTERPRISE OPTIONS TO BUY 567000 SHARES FOR TWOTENTHS OF A CENT EACH THE FAIR MARKET VALUE OF THE COMMON STOCK EXCEEDED SUCH PRICE SAID THE COMPANY'S PROSPECTUS PUTTING IT MILDLY AT THE CURRENT PRICE EXERCISING 1991 OPTIONS WOULD COST MR KAMINSTEIN ABOUT 1050 AND BRING HIM A GAIN OF MORE THAN 7 MILLION WHATEVER HE HAS GAINED HOWEVER THE COMPANY AND ITS INVESTORS HAVE GAINED MORE MR KAMINSTEIN SAYS FROM BEING AN ALMOST WORTHLESS PRIVATELY HELD COMPANY MILLIONS IN DEBT BROOKSTONE NOW HAS A STOCKMARKET VALUATION OF CLOSE TO 90 MILLION IT EARNED MORE THAN 1 A SHARE LAST YEAR AND THE STOCK CLOSED YESTERDAY AT 1250 OF COURSE THOUSANDS OF SMALLCOMPANY BOSSES GET BY ON MODEST SALARIES AN ERNST & YOUNG SURVEY IN APRIL SHOWED THAT CEOS OF COMPANIES WITH ANNUAL SALES OF LESS THAN 100 MILLION GOT AN AVERAGE OF 147750 IN BASE SALARY LAST YEAR UP 26 FROM 1991 THOSE PARTICIPATING IN INCENTIVE PROGRAMS AVERAGED 209600 UP 54 BUT OFTEN THESE CEOS ARE GETTING THEIR PAYOFF ANOTHER WAY CREATIVE TECHNOLOGIES LTD IS ONE OF THE FASTESTGROWING COMPANIES IN AMERICA BUT YOU WOULDN'T GUESS IT FROM CHAIRMAN SIM WONG HOO'S SALARY THE MILPITAS CALIF MAKER OF AUDIO ADDON BOARDS FOR PERSONAL COMPUTERS EARNED 27 MILLION ON SALES OF 204 MILLION IN THE FIRST NINE MONTHS OF THE FISCAL YEAR ENDED JUNE 30 THAT WAS A GIANT LEAP FROM REVENUE OF 42 MILLION AND PROFIT OF JUST 49000 IN ITS FIRST FULL YEAR OF OPERATIONS IN 1988 YET IN THE NINE MONTHS MR SIM GOT JUST 136000 IN SALARY AND BONUS HE HAS YET TO RECEIVE ANY OPTIONS OR OTHER RIGHTS UNDER THE COMPANY'S OPTION PLANS HOWEVER MR SIM A COFOUNDER OWNS 29 OF CREATIVE TECHNOLOGIES' STOCK AND THE STOCK'S PRICE HAS MORE THAN DOUBLED SINCE THE INITIAL OFFERING A YEAR AGO TO 2950 AT YESTERDAY'S CLOSE AT THAT RATE MR SIM ISN'T DOING TOO BADLY HIS STAKE IS WORTH 364 MILLION 9307200114 930720 LETTERS TO THE EDITOR TRUE ISLAM CONDEMNS TERRORISM I WAS DISTURBED BY STEVEN EMERSON'S JUNE 25 EDITORIAL PAGE ARTICLE THE GREAT SATAN WINS ONE WHILE I APPRECIATE MR EMERSON'S SUGGESTION TO HELP US MODERATE MUSLIMS I DISAGREE WITH HIS USE OF EGREGIOUS TERMS LIKE RADICAL AND FUNDAMENTALISM IN DESCRIBING ANY RELIGION MOREOVER INVOLVING LEGISLATIVE DIPLOMATIC AND INTELLIGENCE AGENCIES AS A COMPREHENSIVE SOLUTION IS NOT ENOUGH AMERICANS MUST GAIN A BETTER UNDERSTANDING OF ISLAM IN ORDER TO DETER VIOLENCE AND TO AVOID HYSTERIA IF SERBIAN ETHNIC CLEANSING WAS REPEATEDLY REPORTED AS A FORM OF RADICAL CHRISTIAN FUNDAMENTALISM OR ISRAEL'S BRUTAL TREATMENT OF PALESTINIANS AS RADICAL JEWISH FUNDAMENTALISM I WOULD BE CONCERNED ABOUT THE SAFETY OF EASTERN ORTHODOX CHRISTIANS AND JEWS IF THE US CONFRONTED ANY OF THESE TWO GROUPS MILITARILY TO ENFORCE UN RESOLUTIONS IT IS NOT INCONCEIVABLE THAT WE WOULD BE CONCERNED ABOUT THEIR TERRORIST PLOTS ON AMERICAN SOIL NO EXTREMIST MOVEMENT CAN RECONCILE WITH THE WEST OR THE EAST FOR THAT MATTER IT IS BLATANTLY RACIST TO CLAIM OR IMPLY THAT ONLY PEOPLE OUTSIDE OF THE US CANADA AND EUROPE ARE PRONE TO VIOLENT TENDENCIES TERRORISM IS NOT A NEW PHENOMENON IS NOT NEW TO AMERICA AND WAS NOT BROUGHT TO AMERICAN SHORES BY MUSLIMS IN FACT THE JEWISH DEFENSE LEAGUE HAS BEEN IMPLICATED BY THE FBI AND WAS PLACED ON THE TERRORIST LIST FOR BOMBINGS AND ASSASSINATIONS OF AMERICANS INCLUDING ALEX ODEH IN ANAHEIM CALIF IN 1985 PUERTO RICANS WERE ENGAGED IN VIOLENT METHODS IN THE LATE '40S AND '50S FOR ACHIEVING POLITICAL GOALS TO THE EXTENT THAT THEY STORMED THE US CONGRESS AND ATTEMPTED TO ASSASSINATE PRESIDENT HARRY TRUMAN WHILE AMERICAN MUSLIMS HAVE A MAJOR RESPONSIBILITY IN COMBATING EXTREMISM AND EMOTIONAL FLAREUPS WITHIN THEIR OWN CIRCLES THE VITRIOLIC STATEMENTS MADE BY MR EMERSON MAKE THEIR JOB MORE DIFFICULT WIDENING THE GULF OF MISUNDERSTANDINGS BETWEEN MUSLIMS AND AMERICANS HIS LINKING THE CRIMINAL ACTIVITY OF A FEW WITH A WORLDWIDE NETWORK IS UNSUBSTANTIATED AND HIS ASSESSMENT THAT ISLAM COULD ENDORSE THIS BEHAVIOR RUNS COUNTER TO A RELIGION THAT CONDEMNS TERRORISM CATHOLICS PROTESTANTS JEWS HOMOSEXUALS LATINOS AFRICANAMERICANS ARMENIANS SERBS AND OTHERS HAVE BEEN STAINED BY THE FRINGE ELEMENTS IN THEIR OWN RANKS PEOPLE SHOULD NOT BE MORE ALARMED BY THE NOTION THAT MUSLIMS MUST DEAL WITH THEIR FANATICS LIKE ANY OTHER GROUP DAVID KORESH WAS ARGUABLY INVOLVED IN PROMOTING RADICAL CHRISTIAN FUNDAMENTALISM OTHER CHRISTIAN FUNDAMENTALISTS BOMB ABORTION CLINICS AS WELL AS THREATEN AND ASSASSINATE PHYSICIANS IN SHORT WE LIVE IN A VIOLENT SOCIETY TO SINGLE OUT ONE GROUP FOR THIS UNIVERSAL PROBLEM IS UNJUST ILLOGICAL AND COUNTERPRODUCTIVE BECAUSE I AM A MUSLIM ACTIVIST DOES THIS MEAN THAT I AM A RADICAL ISLAMIC FUNDAMENTALIST OR A MILITANT IN ADDITION TO MY OUTRAGE OF THE NEGATIVE IMAGES IMPOSED ON MY RELIGION I CHALLENGE ANYONE QUESTIONING MY PATRIOTISM ALL RELIGIONS AND ESPECIALLY JUDAISM CHRISTIANITY AND ISLAM THE THREE GREAT RELIGIONS OF THE BOOK SHARE A COMMON GOD AS WELL AS MOST OF THE SAME TEACHERS AND PROPHETS THEY HAVE MUTUALLY COMPATIBLE ASPIRATIONS AND BELIEFS UNFORTUNATELY AS PLAYED OUT ON EARTH MAN IS IMPERFECT AND OFTEN WILL CLOAK NEFARIOUS ACTS WITH RELIGION IT IS TIME TO EMPHASIZE COMMONALITY OF BELIEFS AND ASPIRATIONS IN RELIGIONS RATHER THAN LABELING SKIRMISHES FOR INDIVIDUAL OR ORGANIZATIONAL POWER AS BEING DUE TO A PARTICULAR RELIGION CERTAINLY DEPICTING THE STRUGGLES FOR POWER BY EGYPTIANS AND SUDANESE CROATIANS AND SERBS THE IRISH THE KURDS OR FOR THAT MATTER ANY OTHER SQUABBLE HOWEVER BRUTAL AND DEVASTATING AS DUE TO ANY RELIGION IS MISLEADING IN THE EXTREME AND CREATES A CLIMATE OF HATE AND SUSPICION AGAINST THE VAST MAJORITY OF THOSE WHO WORSHIP IN A PARTICULAR WAY ISLAM HONORS AND ATTEMPTS TO FOLLOW THE TEACHINGS OF ALL THE PROPHETS OF THE JEWS AND THE CHRISTIANS INTRINSICALLY NONVIOLENT THE HOLY QURAN STATES TAKE NOT LIFE WHICH GOD HATH MADE SACRED EXCEPT BY WAY OF LAW OR JUSTICE A SOUND PRINCIPAL FOR ALL IN THIS VIOLENT TIME OUR FOREFATHERS LEFT EUROPE PERSECUTED BY THE HUMAN HIERARCHIES OF ORGANIZED RELIGIOUS INSTITUTIONS AND GOVERNMENTS THEY SOUGHT A LAND WHERE THEY COULD RELATE DIRECTLY TO GOD WITHOUT INTERMEDIARIES SUCH AN ASPIRATION IS FUNDAMENTAL TO ISLAM WHICH FORBIDS THE USE OF COMPULSION IN RELIGION AND CAUTIONS ERECT NOT FROM AMONG YOURSELVES LORDS AND PATRONS OTHER THAN GOD LET US NOW CALL A MORATORIUM ON MUSLIM BASHING AND REPORT GEOGRAPHIC PERSONAL AND NATIONAL POWER INTRIGUES FOR WHAT THEY ARE RATHER THAN SPREADING THE POISON OF DEHUMANIZING LABELS OF SENSIBLE MUSLIM INDIVIDUALS WHO LIVE IN VIRTUALLY ALL NATIONS AND SHARE THEIR BELIEFS WITH A FIFTH OF THE WORLD'S POPULATION 9307200113 930720 REPORT ON INTERNAL CONTROLS WON'T HELP SEC AIDE SAYS WASHINGTON REQUIRING OUTSIDE AUDITORS TO ASSESS A COMPANY'S FRAUDPREVENTION EFFORTS WON'T DETER COOKED BOOKS SAID THE CHIEF ACCOUNTANT FOR THE SECURITIES AND EXCHANGE COMMISSION IN A SPEECH HERE SEC CHIEF ACCOUNTANT WALTER SCHUETZE THREW COLD WATER ON THE PROPOSAL BY AN OVERSIGHT BODY OF THE 300000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS EARLIER THIS YEAR THE ACCOUNTANTS' GROUP SUGGESTED THE SEC REQUIRE OUTSIDE AUDITORS TO DETERMINE WHETHER COMPANIES' INTERNAL CONTROLS ON FINANCIAL FRAUD ARE EFFECTIVE AND INCLUDE THAT ASSESSMENT IN PUBLIC REPORTS MANY CORPORATE EXECUTIVES CRITICIZE THE PLAN AS AN OVERLY EXPENSIVE EXERCISE ACCOUNTING SPECIALISTS HOWEVER MAINTAIN THAT ANNUAL AUDIT REPORTS ARE USELESS WITHOUT AN ACCOMPANYING EVALUATION OF A COMPANY'S INTERNAL CONTROLS INTERNAL CONTROLS ARE RULES COMPANIES IMPOSE TO MONITOR WHETHER THEIR ASSETS ARE BEING PROTECTED FROM FRAUD THEFT EMPLOYEE MISTAKES AND LOSSES MR SCHUETZE SAID HE DOUBTS THAT AUDITORS' PUBLIC ASSESSMENTS OF INTERNAL CONTROLS WOULD DETER FINANCIAL FRAUD NO AMOUNT OF REPORTING ON INTERNAL CONTROLS WILL FERRET OUT ANY MORE FRAUD OR PROVIDE ANY BETTER TECHNIQUES TO FIND IT THAN THE AUDIT OF THE FINANCIAL STATEMENTS SHOULD HAVE DONE IN THE FIRST INSTANCE MR SCHUETZE SAID IN HIS PREPARED TEXT 9307200112 930720 INTERNATIONAL US NORTH KOREA CONSIDER TRADEOFF ON NUCLEAR PLANTS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A FURTHER EFFORT TO GET NORTH KOREA TO CURB ITS NUCLEAR ARMS PROGRAM US NEGOTIATORS DANGLED THE POSSIBILITY OF HELPING THE ISOLATED NATION CONVERT ITS NUCLEAR POWER PLANTS TO SAFER NUCLEAR TECHNOLOGY FROM THE WEST THE OFFER WAS DISCLOSED YESTERDAY AFTER US AND NORTH KOREAN NEGOTIATORS ENDED THREE DAYS OF TALKS IN GENEVA WITH AN AGREEMENT TO IMPROVE RELATIONS NORTH KOREA AGREED TO BEGIN CONSULTATIONS WITH THE VIENNABASED INTERNATIONAL ATOMIC ENERGY AGENCY TO RESOLVE AN IMPASSE OVER INSPECTIONS AT YONGBYON NORTH KOREA'S NUCLEAR RESEARCH FACILITY 60 MILES NORTH OF THE CAPITAL PYONGYANG IT ALSO AGREED TO BEGIN TALKS WITH SOUTH KOREA ON BILATERAL INSPECTIONS TO ASSURE BOTH SIDES THAT NEITHER HAS NUCLEAR WEAPONS IN ADDITION THE US AND NORTH KOREA AGREED TO MEET IN SEPTEMBER TO ASSESS PROGRESS THE BIGGEST POTENTIAL STICKING POINT IS NORTH KOREA'S RELUCTANCE TO LET INTERNATIONAL ATOMIC ENERGY AGENCY INSPECTORS INTO TWO AREAS AT YONGBYON WHERE THERE ARE BELIEVED TO BE NUCLEAR WASTES THAT COULD SHOW HOW MUCH PLUTONIUM NORTH KOREA MAY HAVE DIVERTED FROM A NUCLEAR RESEARCH REACTOR TO MAKE NUCLEARWEAPONS UNDER THE AGREEMENT THE US WOULD SUPPORT CONVERSION OF NORTH KOREA'S NUCLEAR POWER PROGRAM TO WESTERNSTYLE LIGHTWATER REACTORS WHICH CAN'T EASILY BE USED TO DEVELOP CLANDESTINE STOCKS OF BOMB MATERIALS THE CENTERPIECE OF THE NORTH KOREAN PROGRAM NOW CONSISTS OF THREE LOCALLY DESIGNED REACTORS CONTROLLED BY GRAPHITE AND COOLED BY GAS THE REACTORS TWO OF WHICH ARE UNDER CONSTRUCTION CAN USE INDIGENOUS URANIUM WHICH IS CONVERTED INTO PLUTONIUM A BOMB MATERIAL AS IT FISSIONS IN A NUCLEAR REACTOR LIGHTWATER REACTORS WHICH ARE COOLED BY ORDINARY WATER DON'T USE NATURAL URANIUM BUT REQUIRE FUEL THAT HAS BEEN ENRICHED BY A COMPLEX TECHNOLOGY THAT NORTH KOREA DOESN'T APPEAR TO HAVE THE AGREEMENT NOTES THAT WHILE CONVERSION TO LIGHTWATER NUCLEAR PLANTS MAY BE A FINAL SOLUTION TO THE AMBIGUITY OF NORTH KOREA'S PROGRAM IT WOULD INVOLVE COMPLEX FINANCIAL AND LEGAL MATTERS THIS IS WELL DOWN THE LINE PREDICTED PETER HAYES THE AUTHOR OF A BOOK ON NORTH KOREA'S NUCLEAR ENERGY PROGRAM IT WOULD TAKE MANY MONTHS IF NOT YEARS TO NEGOTIATE IT'S A MULTIBILLIONDOLLAR DEAL THEY'RE TALKING ABOUT ONE POSSIBLE SOURCE OF NUCLEAR TECHNOLOGY FOR NORTH KOREA IS RUSSIA WHICH HAS OFFERED TO SELL PYONGYANG A LARGE NUCLEAR POWER PLANT ANOTHER IS SOUTH KOREA WHICH COULD TRANSFER US TECHNOLOGY UNDER THE AGREEMENT REACHED YESTERDAY THE US WOULD BE WILLING TO EXPLORE SUCH POSSIBILITIES ONLY IF NORTH KOREA IS IN FULL COMPLIANCE WITH ITS TREATY OBLIGATIONS UNDER THE NUCLEAR NONPROLIFERATION TREATY WHICH NORTH KOREA HAS SIGNED THE COUNTRY AGREED TO FORGO NUCLEAR WEAPONS AND TO ALLOW INTERNATIONAL INSPECTORS TO EXAMINE ITS NUCLEAR FACILITIES BUT NORTH KOREA INSISTS THAT THE TWO MILITARY SITES AT YONGBYON ARE OFFLIMITS LEONARD S SPECTOR WHO ANALYZES THE SPREAD OF NUCLEAR WEAPONS FOR THE CARNEGIE ENDOWMENT SAID US EXPERTS SUSPECT THE NORTH KOREAN PLANTS WERE BUILT PRIMARILY TO PRODUCE PLUTONIUM FOR NUCLEAR WEAPONS THERE IS SPECULATION THAT THEY RETROFITTED SOME OF THE ELECTRICAL GENERATION EQUIPMENT LATER TO MAKE THE FACILITIES LOOK INNOCENT HE SAID 9307200111 930720 WORLD MARKETS TOKYO STOCKS FALL AMID POSTELECTION WARINESS SHARES IN LONDON FRANKFURT POST SOLID GAINS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS DROPPED IN THIN TECHNICALLY DRIVEN DEALINGS MONDAY AS INVESTORS DIDN'T FIND MUCH CHEER FOR THE ECONOMY FROM THE OUTCOME OF JAPAN'S GENERAL ELECTION WHICH DETHRONED THE LIBERAL DEMOCRATIC PARTY AFTER 38 YEARS OF RULE LONDON SHARE PRICES ROSE AS ENTHUSIASM FOR TELECOMMUNICATIONS ISSUES SPARKED BROADER BUYING STRONG ENOUGH TO OVERCOME MARKED WEAKNESS IN THE DRUG SECTOR FRANKFURT EQUITIES JUMPED 13 PUSHED UP PARTLY BY HOPES FOR A CUT IN GERMAN INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10650 DOWN 030 REFLECTING DECREASES IN ASIA/PACIFIC AND AMERICAN MARKETS AND A RISE IN EUROPEAN MARKETS TRUCKING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11706 UP 186 OR 16 WITH NEDLLOYD OF THE NETHERLANDS POSTING A 97 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 12753 DOWN 387 OR 3 WITH GLOBAL MARINE OF THE US SLIDING 91 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 17351 POINTS FRIDAY DROPPED 18061 TO 2015092 ON TUESDAY THE NIKKEI FELL 6881 POINTS TO CLOSE THE MORNING SESSION AT 2008211 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES DOWN FROM 3449 MILLION SHARES IN THE PREVIOUS SESSION LOSERS SWAMPED GAINERS 640337 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 1320 POINTS FRIDAY DECLINED 820 TO 164468 THE ELECTION SUNDAY FOR JAPAN'S LOWER HOUSE OF THE DIET OR PARLIAMENT RESULTED IN THE RULING LIBERAL DEMOCRATIC PARTY'S WINNING 223 SEATS ONE MORE THAN IT HAD GOING INTO THE BALLOTING BUT FEWER THAN IT NEEDED TO CINCH POWER OTHER CONSERVATIVE PARTIES INCLUDING THOSE LAUNCHED BY LDP DEFECTORS IN JUNE SURGED TO 103 SEATS FROM 46 SHARE PRICES HAD DISCOUNTED THE ELECTION OUTCOME AS THE NIKKEI GAINED LAST WEEK ON EXPECTATIONS THAT THE LDP WOULD HOLD ITS OWN AS NO CLEAR WINNER EMERGED INVESTORS BALANCED POLITICAL AND ECONOMIC ISSUES AND MANY STAYED ON THE SIDELINES ANXIOUS ABOUT POLITICAL DEVELOPMENTS SUCH AS WHETHER THE NEXT PRIME MINISTER WILL COME FROM AN ANTILDP COALITION THE BULK OF STOCK SELLING MONDAY WAS ATTRIBUTED TO ARBITRAGERS WHO UNWOUND POSITIONS MARKET PARTICIPANTS WERE AWAITING TUESDAY'S RELEASE OF THE JAPANESE LEADING INDICATOR AND HOUSEHOLD SPENDING FOR MAY WHICH COULD PROVIDE CLUES ABOUT THE DIRECTION OF INTEREST RATES AND THE ECONOMY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 99 POINTS TO 28429 THE FT 30STOCK INDEX GAINED 155 POINTS TO 22343 VOLUME WAS 7604 MILLION SHARES UP FROM 6288 MILLION SHARES IN THE PREVIOUS SESSION THE MARKET WAS BUOYED BY THE SOLID PERFORMANCE OF THE 5 BILLION 743 BILLION OF BRITISH TELECOMMUNICATIONS SHARES THAT WERE SOLD BY THE BRITISH GOVERNMENT AND THAT BEGAN TRADING YESTERDAY VOLUME IN THE SOCALLED PARTLY PAID BT SHARES TOTALED A WHOPPING 84 MILLION SHARES OR 11 OF TOTAL TURNOVER FULLY PAID BT SHARES ALSO HAD A DOMINANT ROLE WITH VOLUME OF 68 MILLION SHARES THE END OF THE GOVERNMENT'S SALE OF BT STOCK WAS EXPECTED TO EASE PRESSURE ON INSTITUTIONAL INVESTORS' CASH POSITIONS FREEING UP MONEY FOR THE GENERAL MARKET THIS ALONG WITH RECENT DATA THAT SUGGEST BRITAIN'S ECONOMIC RECOVERY IS REASONABLY STRONG COULD FUEL MARKET ADVANCES THE LONDON GAINS ALSO RESULTED PARTLY FROM A TECHNICAL REBOUND FROM OVERSELLING IN THE PREVIOUS TWOWEEK ACCOUNT PERIOD STOCKS' OVERALL STRENGTH WAS IMPRESSIVE TOO CONSIDERING THAT THE PHARMACEUTICAL SECTOR TOOK A DRUBBING AND MANY OF THOSE STOCKS WENT EXDIVIDEND LOPPING 29 POINTS OFF THE MAIN INDEX A US ANALYST'S DOWNGRADE OF THE DRUG SECTOR LAST WEEK HAS HURT PRICES OF US AND BRITISH DRUG STOCKS IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 2283 POINTS TO 183629 RECENT CURRENCY URBULENCE IN FOREIGNEXCHANGE MARKETS AND TOMORROW'S EXPECTED GERMAN MONEYSUPPLY DATA HEIGHTENED HOPES FOR A GERMAN INTERESTRATE CUT NEXT WEEK STOCKS' RISE ALSO WAS PROPELLED BY STRONG FOREIGN BUYING RECENT BUY RECOMMENDATIONS BY GERMAN ANALYSTS AND GENERALLY IMPROVED SENTIMENT ABOUT THE GERMAN ECONOMY'S RECOVERY FROM RECESSION AND AFTER FRIDAY'S RISE FOR THE DAX INVESTORS COVERED SHORT OR OVERSOLD POSITIONS TAKEN IN A STRATEGY THAT PRICES WOULD DROP PARIS STOCKS INCHED UP IN CALM TRADING AS INVESTORS AWAITED FURTHER SIGNALS ON THE NEXT MOVE IN EUROPEAN INTEREST RATES WHILE SPECULATIVE ATTACKS AGAINST THE FRENCH FRANC COOLED THE CURRENCY'S WEAKNESS AND GAINS IN FRENCH BONDS SENT CONFLICTING SIGNALS AMSTERDAM SHARE PRICES CLOSED BROADLY HIGHER MONDAY LED BY CONTINUED FOREIGN INTEREST MOSTLY IN CYCLICAL STOCKS MILAN EQUITIES WEAKENED THOUGH INDUSTRIAL STOCKS WERE BOOSTED ON HOPES THAT INTEREST RATES WILL FALL FURTHER AND ON ENCOURAGING SIGNS THAT A THORNY ITALIAN LABOR ACCORD IS LIKELY TO BE APPROVED BY UNIONS MADRID STOCKS SLIPPED ON LINGERING CONCERNS ABOUT THE SPANISH PESETA'S STABILITY DESPITE CALM CURRENCY MARKETS BANKS ROSE ON STEADY FIRSTHALF FINANCIAL RESULTS BUT ELECTRICAL UTILITIES MANY OF WHICH HOLD LARGE FOREIGNCURRENCY DEBTS DECLINED ON WORRIES ABOUT PESETA WEAKNESS ZURICH STOCKS FELL ON BROAD PROFITTAKING STOCKHOLM PRICES ROSE TO EXTEND THE MARKET'S WINNING STREAK TO 10 CONSECUTIVE SESSIONS AS GAINS IN THE PHARMACEUTICAL SECTOR OFFSET CONTINUED PROFITTAKING IN THE TELECOMMUNICATIONS AREA THE MARKET RALLIED IN AFTERNOON TRADING ON HEAVY DEMAND BY FOREIGN INVESTORS IN SYDNEY SHARE PRICES FELL BECAUSE OF FRIDAY'S DROP IN US STOCKS AND UNCERTAINTY ABOUT EFFECTS OF THE JAPANESE ELECTION HONG KONG SHARES SLID THOUGH THEY DID RECOVER FROM EVEN DEEPER LOWS ON CONCERNS ABOUT THE CHINESE ECONOMY UNDER THE COUNTRY'S AUSTERITY PROGRAM AMONG CORPORATE DEVELOPMENTS IN LONDON BOOTS JUMPED 13 PENCE OR 31 TO 435 PENCE 646 THE COMPANY IS VOLUNTARILY WITHDRAWING FROM THE MARKET MANOPLEX ITS DRUG FOR CONGESTIVE HEART FAILURE AFTER A STUDY INDICATED A RISE IN HOSPITALIZATIONS AMONG PATIENTS USING THE DRUG AT LOW DOSES AN EARLIER STUDY INDICATED AN INCREASE IN MORTALITY RATES OF PATIENTS ON HIGHER DOSAGES WHICH HAD PROMPTED BOOTS IN APRIL TO WITHDRAW A HIGHERDOSE MANOPLEX AND TO ADVISE US AND BRITISH DOCTORS TO USE THE LOWER DOSAGE BOOTS SAID THE DRUG WITHDRAWAL WILL HAVE ONLY A SMALL EFFECT ON THE COMPANY'S EARNINGS NATIONAL WESTMINSTER BANK ADDED 4 TO 506 NATWEST AGREED WITH COMMERZBANK OF GERMANY AND SOCIETE GENERALE OF FRANCE TO PROVIDE CROSSBORDER BANKING SERVICES FOR SOME CORPORATE CUSTOMERS 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 9307200110 930720 MONDAY'S MARKETS STOCKS FINISH MIXED ON DROP IN TECH SECTOR BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED IN LACKLUSTER TRADING AS INVESTORS CONTINUED TO BEAT DOWN TECHNOLOGY SHARES LONGTERM BOND PRICES WERE LITTLE CHANGED AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE ROSE 699 POINTS TO 353528 STANDARD & POOR'S 500STOCK INDEX EDGED UP 028 TO 44603 BUT THE NASDAQ COMPOSITE INDEX FELL 390 TO 69583 ANALYSTS SAID LAST WEEK'S BATTERING OF TECHNOLOGY STOCKS CONTINUED WITH SEVERAL COMPUTER AND SEMICONDUCTOR ISSUES SLUMPING FURTHER BUT OIL STOCKS JUMPED ON A REBOUND IN THE PRICE OF OIL DENNIS LYNCH PRESIDENT OF INVESTMENT COMPANY LYNCH & MAYER POINTED OUT THAT OTHER MAJOR INDEXES HAVE FAILED TO HIT RECORDS IN THE WAKE OF THE NASDAQ COMPOSITE'S HIGH LAST WEEK WORSE THE NASDAQ COMPOSITE HAS TUMBLED FROM ITS RECORD OF 71249 ON WEDNESDAY FOR THE TIME BEING THE MARKET WILL RETREAT A LITTLE BIT MR LYNCH PREDICTED A JUMP IN AGRICULTURAL COMMODITIES PRICES ALONG WITH THE RISE IN OIL PRICES LEFT THE BOND MARKET MOSTLY FLAT YESTERDAY ANALYSTS SAID BOND TRADERS WERE CAUTIOUS AHEAD OF FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S SEMIANNUAL TWODAY REPORT TO CONGRESS ON THE ECONOMY AND MONETARY POLICY BEGINNING TODAY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED 030 TO 10650 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 215850030 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1070 ISSUES FELL AND 852 ROSE THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17070 MARKS AND 10848 YEN COMPARED WITH 17160 MARKS AND 10755 YEN FRIDAY 9307200109 930720 LETTERS TO THE EDITOR THE DIOXIN CHASE JUST WASTES MONEY YOUR JUNE 29 EDITORIAL THE NANOGRAM MAFIA DISCUSSES THE LATEST ASSAULTS ON VON ROLL'S EAST LIVERPOOL OHIO WASTE INCINERATOR APPARENTLY THE EPA WILL LIMIT THE INCINERATOR TO THE RELEASE OF LESS THAN 30 NANOGRAMS OF DIOXIN PER CUBIC METER OF STACK GAS NOT PER CUBIC METER OF DRY WASTE AS YOU STATED IF THIS EMISSION REQUIREMENT IS PUT INTO PERSPECTIVE IT WILL BE EASIER TO JUDGE THE LEVEL OF THE HUMAN HEALTH IMPACT A QUICK CALCULATION SHOWS THAT 30 NANOGRAMS PER CUBIC METER AMOUNTS TO A RELEASE OF ABOUT 15 TO 20 GRAMS PER YEAR CARRIED OUT OF THE INCINERATOR IN ROUGHLY 20 CUBIC FEET OF STACK GAS DIOXINS ARE EASILY DECOMPOSED AND RENDERED NONTOXIC BY THE ACTION OF SUNLIGHT THAT WHICH IS LEFT WOULD BE DISTRIBUTED BY NORMAL AIR CURRENTS ALL OVER THE EASTERN US AND WOULD BLEND IMPERCEPTIVELY WITH THE ROUGHLY 002 TRILLIONTHS OF A GRAM PER CUBIC METER IN THE LOWER OCEAN OF AIR THAT WE BREATH TO THE EXTENT THAT THE DIOXINS REACHED THE GROUND THEY WOULD ADD AGAIN IMPERCEPTIBLY TO THE DIOXINS PRESENT IN NATIVE SOIL ABOUT 05 TO 10 BILLIONTH OF A GRAM PER GRAM OF SOIL DIOXINS HAVE BEEN WITH US SINCE THE BEGINNING OF TIME THEY ARE PRODUCED BY ALMOST ANY COMBUSTION SOURCE INCLUDING FOREST FIRES AND IN NATURE BY THE ACTION OF ENZYMES IN SOIL COPPER SMELTERS AND AUTO EXHAUST ARE MODERN MAJOR SOURCES THE TRAGEDY OF SPENDING BILLIONS OF DOLLARS NATIONWIDE CHASING TRACES OF DIOXINS IS THAT MORE DESERVING NEEDS ARE UNMET LET'S SPEND THE MONEY ON AIDS RESEARCH AND ON PRENATAL CARE 9307200106 930720 WHO'S NEWS PILKINGTON UNIT AMID ALLEGATIONS NAMES NEW CEO BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL A NEW CHIEF EXECUTIVE OFFICER WAS NAMED TO HEAD LIBBEYOWENSFORD CO PILKINGTON PLC'S US GLASSMAKING UNIT WHICH HAS BEEN ROCKED BY ALLEGATIONS OF FRAUD CONSPIRACY AND KICKBACKS RODNEY STANSFIELD HEAD OF PILKINGTON'S UK GLASSMAKING UNIT WAS NAMED PRESIDENT CEO AND A DIRECTOR OF LIBBEYOWENSFORD HE ASSUMES THE DUTIES SEPT 1 MR STANSFIELD SUCCEEDS TREVOR O JONES CEO SINCE EARLY MAY WHEN RONALD W SKEDDLE WAS DISMISSED ABRUPTLY AS CHIEF BY LIBBEYOWENSFORD WHICH LATER ACCUSED MR SKEDDLE OF CONSPIRING TO DEFRAUD THE GLASSMAKER ALSO DISMISSED FOR ALLEGEDLY PARTICIPATING IN THE CONSPIRACY WERE TWO EXECUTIVE VICE PRESIDENTS DARRYL COSTIN AND EDWARD BRYANT MR JONES BOARD CHAIRMAN AT LIBBEYOWENSFORD WILL CONTINUE TO SERVE IN THAT POST MR STANSFIELD 54 YEARS OLD JOINED PILKINGTON IN 1966 AND HAS BEEN PILKINGTON GLASS LTD'S CEO SINCE 1990 IN A RELATED MATTER CLARENCE H MARTIN JOHN R PURSER AND FOUR CORPORATIONS ACCUSED BY LIBBEYOWENSFORD OF CONSPIRING WITH ITS OFFICERS TO DEFRAUD IT ASKED AN OHIO COURT TO DISMISS THE GLASSMAKER'S COMPLAINT AGAINST THEM MR MARTIN A OHIO UNIVERSITY BUSINESS PROFESSOR AND CONSULTANT FOR LIBBEYOWENSFORD AND MR PURSER THE HEAD OF A EPSTEIN & SONS INTERNATIONAL INC'S COMPUTER TECHNOLOGY MANAGEMENT INC WHICH HANDLES DATA PROCESSING FOR THE GLASSMAKER SAID LIBBYOWENSFORD FAILED TO EXPLAIN THE ALLEGED KICKBACK SCHEMES IN SUFFICIENT DETAIL IN ITS COMPLAINT THE MOTION TO DISMISS FILED IN FRANKLIN COUNTY COMMON PLEAS COURT IN COLUMBUS OHIO ALSO ARGUES THAT THE DEFENDANTS CAN'T BE CHARGED WITH DEFRAUDING LIBBEYOWENSFORD BECAUSE THEY OWED NO ALLEGIANCE TO THE COMPANY AND WEREN'T OBLIGATED TO DISCLOSE SELFDEALING ON THE PART OF DISLOYAL LOF OFFICERS ACCORDING TO LIBBEYOWENSFORD'S COMPLAINT THE CODEFENDANTS CONSPIRED TO SELL DATA PROCESSING SERVICES TO LEASE ROBOTS TO THE GLASSMAKER AT INFLATED PRICES AND TO BUY GAS AND OIL WELLS FROM THE COMPANY AT DEFLATED PRICES LIBBEYOWENSFORD'S DATA PROCESSING SERVICES STILL ARE HANDLED ALMOST ENTIRELY BY COMPUTER TECHNOLOGY MANAGEMENT ALTHOUGH THE GLASSMAKER IS SEEKING TO STOP PAYMENT TO THE COMPANY FOR THOSE SERVICES IN COURT STATEMENTS LIBBEYOWENSFORD ALLEGED MR SKEDDLE MR BRYANT AND MR COSTIN RECEIVED KICKBACKS BUT THE GLASSMAKER DIDN'T NAME THE THREE EXECUTIVES IN ITS CIVIL COMPLAINT APPARENTLY BECAUSE THEIR EMPLOYMENT CONTRACTS REQUIRE DISPUTES TO BE HANDLED THROUGH ARBITRATION 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 9307200105 930720 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN LABOR AND TRADE OFFICIALS WORK TO HAMMER OUT A SIDE AGREEMENT ON NAFTA THE WHITE HOUSE WHICH HAS VOWED TO REACH PACTS ON LABOR STANDARDS AND THE ENVIRONMENT BEFORE PROCEEDING WITH THE NORTH AMERICAN FREE TRADE AGREEMENT HOPES TO HAVE THOSE ACCORDS RESOLVED IN A MONTH THE US WANTS A LABORCONDUCT CODE THAT SETS BASELINES ON SUCH ISSUES AS CHILD LABOR MINIMUM WAGE AND SAFETY BUT MEXICO WHICH THE US SAYS OFTEN DOESN'T ENFORCE ITS STANDARDS IS BALKING US OFFICIALS CITE PROGRESS IN THIS MONTH'S MEETING IN MEXICO IN THE END A MULTISTEP PROCESS FOR LABORLAW ENFORCEMENT IS LIKELY THE US WANTS AN OVERSIGHT SYSTEM IN WHICH A COUNTRY WOULD COMPLAIN A COMMISSION WOULD STUDY THE ISSUE THEN AN ARBITRATION PANEL WOULD HEAR THE CASE IF PROBLEMS ARE FOUND TRADE SANCTIONS COULD BE BROUGHT BY THE COMPLAINING NATION ADMINISTRATION OFFICIALS FUME OVER ORGANIZED LABOR'S OPPOSITION TO NAFTA EVEN WITH SIDE AGREEMENTS ARCHITECTS' JOB PROSPECTS BRIGHTEN BUT INDUSTRY REMAINS WEAK IN THE NORTHEAST WHERE UNEMPLOYMENT IN THE SECTOR HAS BEEN ESPECIALLY HIGH SOME FIRMS HAVE BEGUN HIRING FOR WORK ON PUBLICSECTOR PROJECTS AND MEDICAL AND HIGHTECH INDUSTRY BUILDINGS MEDIUM AND SMALLSIZED FIRMS ARE DRIVING THE HIRING SAYS DAVID MCFADDEN OF NEW YORKBASED CONSULTING FOR ARCHITECTS INC A FEBRUARY AMERICAN INSTITUTE OF ARCHITECTS SURVEY FOUND THAT 30 OF FIRMS HAD ADDED WORKERS IN THE PRIOR SIX MONTHS WHILE 18 HAD SHRUNK BUT PROBLEMS PERSIST THE COMMERCIAL REALESTATE SLUMP IN CALIFORNIA WHICH HIT LATER THAN IN THE EAST IS HURTING LOS ANGELES ARCHITECTURAL FIRMS I GET RESUMES FROM CALIFORNIA WHICH IS NOT A GOOD SIGN SAYS NEW YORK ARCHITECT PLACEMENT SPECIALIST RUTH HIRSCH WHILE MR MCFADDEN'S JOBPLACEMENT WORK HAS TRIPLED THIS YEAR IT IS JUST HALF WHAT IT WAS FIVE YEARS AGO STORMY WEATHER EMPLOYEES OFTEN ARE ON THEIR OWN AT TIMES COMPANIES CLOSE BASED ON OFFICIAL NATIONAL WEATHER SERVICE WARNINGS BUT USUALLY DECISIONS ARE MADE ON AN EMPLOYEEBYEMPLOYEE BASIS AT CE SOFTWARE HOLDINGS IN WEST DES MOINES IOWA WORKERS ARE TOLD TO DO WHATEVER THEY'RE COMFORTABLE WITH SOME EMPLOYEES HAVE BEEN EXCUSED WITH PAY TO HELP SANDBAG FLOODING RIVERS BOATMEN'S BANKSHARES OF DES MOINES GIVES EMPLOYEES THE BENEFIT OF THE DOUBT WE DON'T WANT ANYONE RISKING THEIR LIVES IN HOUSTON WHERE TROPICAL STORM ARLENE RECENTLY CAUSED FLOODING TENNECO WORKERS GOT PAID TIME OFF UNTIL ROADS WERE PASSABLE AT ARTHUR D LITTLE EMPLOYEES ARE EXCUSED WITH PAY ONLY IF CERTAIN ROADS ARE DECLARED IMPASSABLE BY AN OFFICIAL AUTHORITY OSMONICS MINNETONKA MINN WHILE BOWING TO THE DISCRETION OF THE EMPLOYEE DOESN'T PAY HOURLY WORKERS IF THEY DON'T SHOW UP FOR SOME COMPANIES THE WEATHER HAS TO BE VERY ROUGH CHRYSLER SAYS IT NEVER HAS CLOSED ITS WARREN MICH METALSTAMPING PLANT DUE TO SNOW THE COAL STRIKE GETS A BOOST FROM THE MIDWEST'S WET WEATHER WITH SOME 16000 UNITED MINE WORKERS CLOSING KEY EASTERN MINES BUYERS LOOK TO WESTERN COMPANIES TO SERVE MIDWEST CUSTOMERS AND BYPASS THE 10WEEKOLD SELECTIVE STRIKE BUT THE FLOODED MISSISSIPPI RIVER HAS INTERFERED BLOCKING SHIPMENTS AND CAUSING MORE RAPID DEPLETION OF STOCKPILES GET OUT OF THE HOUSE AT LEAST FOR THE EARLY YEARS A STUDY BY DALLAS EMPLOYMENT CONSULTANT JOANNE PRATT SHOWS THAT SELFEMPLOYED WOMEN IN THEIR 20S WHO WORK AT HOME AVERAGE 8307 A YEAR A THIRD LESS THAN THEIR COUNTERPARTS OUTSIDE THE HOME THE SPLIT FADES WITH AGE AS SELFEMPLOYED WOMEN OVER 30 EARN ABOUT THE SAME AT HOME OR OUT SELFEMPLOYED MEN MAKE ABOUT 19000 A YEAR REGARDLESS OF LOCATION HARD TIMES FOR THE LIMO SET FOR THE THIRD CONSECUTIVE YEAR CORPORATE DIRECTORS DIDN'T GET A RAISE KEEPING THE MEDIAN RETAINER AT 25000 CONSULTANT TOWERS PERRIN SAYS IN A STUDY OF 1993 PROXIES MEDIAN FEES FOR BOARD AND COMMITTEE MEETINGS HELD AT 1000 EACH FOR THE THIRD STRAIGHT YEAR ACCORDING TO THE FIRM'S PAULA TODD LAWYERS KEEP A CLOSE EYE ON A CLASSACTION SEXUALHARASSMENT SUIT IN MAY A MINNESOTA FEDERAL COURT ALLOWED THE FIRST CLASSACTION IN A SEXHARASSMENT CASE FINDING EVELETH TACONITE LIABLE FOR CREATING A HOSTILE WORK ENVIRONMENT BY ALLOWING ABUSIVE GRAFFITI AND LANGUAGE AS MANY AS 45 WOMEN MAY BE ELIGIBLE TO COLLECT DAMAGES FROM THE MINING COMPANY SAYS JEAN BOLER A LAWYER FOR THE WOMEN DAMAGE CLAIMS WILL BE DETERMINED SEPARATELY AS EARLY AS NEXT MONTH THE STATE ALSO IS SEEKING DAMAGES FROM EVELETH FOR VIOLATING STATE LAW THAT PROHIBITS SEXUAL HARASSMENT AND SEX DISCRIMINATION IN PROMOTIONS THE CHECKOFF TO SETTLE A LABOR DISPUTE US SUGAR GIVES FIELD WORKERS BARCODED CREDITTYPE CARDS THAT ARE SCANNED BY LASER READER TO DETERMINE THE NUMBER OF HOURS WORKED IN THE CANE FIELDS THE ASSOCIATION OF FLIGHT ATTENDANTS SAYS IT GOT BRITISH AEROSPACE TO REDESIGN A PLANE REMOVING THE FLIGHT ATTENDANT'S JUMP SEAT FROM THE BATHROOM 9307200103 930720 CHEMWASTE EARNINGS SLID IN 2ND QUARTER CHARGE COULD OCCUR OAK BROOK ILL CHEMICAL WASTE MANAGEMENT INC REPORTED SECONDQUARTER EARNINGS IN LINE WITH ITS GLOOMY FORECAST OF A MONTH AGO THE COMPANY ALSO DISCLOSED THAT WITH NO SIGN OF NEARTERM INDUSTRY IMPROVEMENT IT MAY TAKE A CHARGE TO WRITE DOWN THE VALUE OF SOME OF ITS HAZARDOUSWASTE HANDLING ASSETS THE HAZARDOUSWASTE HANDLING CONCERN SAID NET INCOME WAS 226 MILLION OR 11 CENTS A SHARE OFF FROM THE YEARAGO PERIOD'S 524 MILLION OR 26 CENTS A SHARE WHILE THE LATEST PERIOD HAD A SPECIAL PRETAX GAIN OF 105 MILLION FROM A UNIT'S ISSUANCE OF STOCK THE YEARAGO RESULTS WERE BOOSTED BY A 47 MILLION SIMILAR GAIN CHEMWASTE'S REVENUE REFLECTING THE FORMATION OF RUST INTERNATIONAL TO WHICH THE COMPANY CONTRIBUTED CERTAIN ASSETS AND NOW HOLDS A 56 STAKE ROSE TO 5340 MILLION FROM 3973 MILLION EXCLUDING THE SPECIAL GAIN AND THE RESULTS OF ITS RUST OWNERSHIP CHEMWASTE SAID ITS CORE LINES' RESULTS BROKE EVEN THE COMPANY CITED A DECLINE IN WASTE VOLUMES FROM ENVIRONMENTAL CLEANUP PROJECTS WHICH LOWERED VOLUME AND PROFITS AT THE COMPANY'S TREATMENT AND DISPOSAL FACILITIES THE LATEST PERIOD'S RESULTS ALSO WERE HURT BY THE ECONOMY'S CONTINUED SLUGGISHNESS THE COMPANY SAID AND PARTICULARLY BY SOFTNESS IN THE COMMERCIAL HAZARDOUSWASTE INCINERATION MARKET THE UNCERTAIN DEMAND FOR OFFSITETREATMENT AND DISPOSAL OF HAZARDOUS WASTE FROM CLEANUP PROJECTS AND THE WEAKNESS IN THE INCINERATION MARKET DO NOT SHOW SIGNS OF IMPROVING SUBSTANTIALLY IN THE NEAR TERM CHEMWASTE SAID AS A RESULT IT SAID IT IS EXAMINING ITS TREATMENT AND DISPOSAL FACILITIES FOR WAYS TO BOOST MARGINS THE COMPANY ALSO SAID IT WILL REVIEW WHETHER CERTAIN OF ITS HAZARDOUSWASTE INCINERATION FACILITIES ARE APPROPRIATELY VALUED IN LIGHT OF THE CURRENT MARKETPLACE THE TWO REVIEWS EXPECTED TO BE FINISHED IN THE CURRENT QUARTER MAY MEAN THAT CHEMWASTE WOULD RECORD A CHARGE A SPOKESMAN SAID IT WAS TOO EARLY TO PROJECT THE AMOUNT OF THE POSSIBLE CHARGE CHEMWASTE CURRENTLY OPERATES 18 HAZARDOUSWASTE TREATMENT AND DISPOSAL FACILITIES IN THE US AND MEXICO INCLUDING THREE INCINERATION SITES 9307200102 930720 LETTERS TO THE EDITOR COYOTES ARE SMART ADAPTABLE PLENTIFUL CONCERNING YOUR JUNE 22 ENVIRONMENT COLUMN ABOUT THE COYOTE PROBLEM IN THE WEST I AM NOT A GREAT FAN OF SHEEP BECAUSE OF THE DAMAGE I HAVE SEEN THEM DO TO WESTERN GRAZING AREAS HOWEVER TO ANSWER JOHN GRANDY OF THE HUMANE SOCIETY I WOULD ASK HAS HE EVER SEEN THE DEVASTATION THAT A PACK OF COYOTES CAN DO TO A BAND OF SHEEP EVEN IN A SINGLE NIGHT I LIVE IN AN AREA WHERE THERE ARE LOTS OF SHEEP AND COYOTES I HUNT COYOTES TO HELP THE SHEEPMEN AND FOR THE SPORT OF IT I KNOW THAT WILL MAKE MR GRANDY SCREAM LET ME TELL YOU COYOTES ARE VERY SMART AND VERY PLENTIFUL THEY ARE IN NO DANGER OF EXTINCTION BY HUMANS AND THEY ARE ADAPTABLE I'VE SEEN THEM SURVIVE IN THE SUBURBS OF LOS ANGELES AND IN AREAS OF IDAHO MONTANA AND WYOMING WHERE THERE ISN'T A HUMAN WITHIN 40 SQUARE MILES THERE ARE A LOT MORE PEOPLE IN THE WORLD WHO WEAR WOOL AND EAT RACK OF LAMB THAN WEAR COYOTE SKIN COATS AND EAT COYOTE MEAT 9307200101 930720 TWO DEMOCRATIC SENATORS BEGIN PUSH TO REMOVE ENERGY TAX FROM MEASURE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SUPPORT FOR DROPPING ANY FORM OF ENERGY TAX FROM THE BUDGET DEFICITREDUCTION BILL HAS SPREAD FROM THE HOUSE TO THE SENATE AS TWO SENIOR DEMOCRATIC SENATORS HAVE BEGUN PUSHING THE IDEA THE SENATORS MAX BAUCUS OF MONTANA AND DAVID PRYOR OF ARKANSAS BOTH ARE NEGOTIATORS ON THE HOUSESENATE CONFERENCE THAT IS WORKING TO REACH A COMPROMISE VERSION OF PRESIDENT CLINTON'S ECONOMIC PROGRAM THEIR STANCE TOGETHER WITH A CONTINUING PUSH AMONG A MIX OF HOUSE DEMOCRATIC LIBERALS AND CONSERVATIVES IN EFFECT COULD PRESSURE NEGOTIATORS TO ADOPT A MINIMAL ENERGY TAX IF NOT DELETE IT A BROADBASED ENERGY TAX WAS A MAJOR PART OF MR CLINTON'S DEFICITREDUCTION PROGRAM AND UNTIL THIS MONTH WAS ONE OF THE CRITERIA HE SET FOR A FINAL BILL ON SUNDAY HOWEVER WHITE HOUSE BUDGET CHIEF LEON PANETTA CONFIRMED THAT THE PRESIDENT'S PROPOSED BTU TAX WAS DEAD AND THAT THE FINAL BILL MOST LIKELY WOULD BORROW FROM THE SENATE VERSION'S PROVISION FOR A 43CENTSAGALLON TAX INCREASE ON GASOLINE AND OTHER TRANSPORTATION FUELS THAT WOULD RAISE FAR FEWER REVENUES SENS BAUCUS AND PRYOR HAVE COME TO THEIR POSITION FROM DIFFERENT ROUTES THE MONTANAN OPPOSES A FUELS TAX INCREASE AS A BURDEN ON WESTERNSTATE DRIVERS AND FEARS THAT NEGOTIATORS WILL PUSH THE LEVY BEYOND THE SENATE'S 43 CENTS IN AN EFFORT TO RAISE MORE REVENUES WHILE SEN PRYOR ISN'T OPPOSED TO A MODEST FUELS TAX INCREASE BUT BOTH ACCORDING TO THEIR AIDES BELIEVE AN ENERGY TAX IS MORE POLITICAL TROUBLE THAN IT'S WORTH FOR THE MONEY IT RAISES LIKEWISE THE HOUSE MEMBERS WHO WANT TO DROP AN ENERGY TAX ARGUE THAT DELETING THE LEVY WOULD LEAVE A BILL THAT HITS ONLY THE WEALTHY AND CORPORATIONS NOT THE MIDDLE CLASS AND THUS DEPRIVE REPUBLICANS OF A KEY LINE OF ATTACK HOWEVER DROPPING AN ENERGY TAX ALSO REMOVES MANY REVENUES 72 BILLION OVER FIVE YEARS FROM THE HOUSE BILL WHICH INCLUDED MR CLINTON'S NOWDEAD BTU TAX AND 22 BILLION UNDER THE SENATE FUELS TAX THAT ARE NEEDED BOTH TO HIT MR CLINTON'S DEFICITCUTTING GOAL OF 500 BILLION OVER FIVE YEARS AND TO OFFSET THE COST OF POPULAR INITIATIVES FOR THE POOR AND FOR BUSINESS SEN PRYOR IS A FRIEND OF MR CLINTON'S AND BOTH SENATORS HAVE DISCUSSED THE IDEA OF A NOENERGYTAX BILL WITH THE ADMINISTRATION FELLOW DEMOCRATIC SENATORS AND LIKEMINDED HOUSE DEMOCRATS THE MAIN HOUSE AND SENATE NEGOTIATORS THOSE WORKING ON TAX ISSUES ARE TO MEET TODAY IN A PUBLIC SESSION THAT'S THE FIRST SINCE THAT GROUP CONVENED LAST WEEK THEY'RE EXPECTED TO VOTE ON SOME PROVISIONS THAT ARE COMMON TO BOTH THE HOUSE AND SENATE BILLS FOR INCLUSION IN THE FINAL COMPROMISE THE ONE POTENTIALLY CONTROVERSIAL PROVISION IN THE BUNCH WOULD RAISE THE CORPORATE TAX RATE TO 35 FROM 34 SOME LIBERAL DEMOCRATS IN BOTH HOUSES WANTED A LARGER INCREASE TO RAISE MORE MONEY THE GOAL OF THE WHITE HOUSE AND DEMOCRATIC LEADERS IS TO FINISH A BILL BY THE MIDDLE OF NEXT WEEK LEAVING JUST OVER A WEEK TO PUSH A COMPROMISE THROUGH BOTH HOUSES BEFORE CONGRESS DEPARTS FOR ITS ANNUAL AUGUST RECESS THE PRESIDENT MET LATE YESTERDAY WITH THE CHAIRMEN OF THE SENATE AND HOUSE BUDGET COMMITTEES SEN JIM SASSER D TENN AND REP MARTIN SABO D MINN WHO ARE CHARGED WITH COORDINATING THE WORK OF THE MANY SUBCONFERENCES ON TAXES AND OTHER ISSUES MR CLINTON'S SCHEDULE THIS WEEK TENTATIVELY CALLS FOR MEETINGS TODAY WITH CAUCUSES OF CONGRESSIONAL WOMEN AND HISPANIC LAWMAKERS AND TOMORROW WITH THE CONGRESSIONAL BLACK CAUCUS WHICH PREVIOUSLY HAD SNUBBED THE PRESIDENT IN PROTEST OF HIS WITHDRAWAL OF THE NOMINATION OF LANI GUINIER TO BE IN CHARGE OF CIVIL RIGHTS ENFORCEMENT AT THE JUSTICE DEPARTMENT HE WILL HOLD OTHER MEETINGS WITH SMALLBUSINESS LEADERS TWO SEPARATE GROUPS OF CONSERVATIVE HOUSE DEMOCRATS AND THE DEFICITCONSCIOUS GROUP OF FRESHMEN HOUSE DEMOCRATS JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9307200100 930720 THE HARVARD LAW 10 BY JILL ABRAMSON CAROL BROSNAHAN WORKED HER WAY THROUGH HARVARD LAW SCHOOL AS A WINNING CONTESTANT ON THE TELEVISION QUIZ SHOW TIC TAC DOUGH AND BY COOKING FOR A GROUP OF MALE LAWSCHOOL STUDENTS THAT INCLUDED HER FUTURE HUSBAND SAN FRANCISCO TRIAL LAWYER JAMES BROSNAHAN MRS BROSNAHAN COULDN'T GET HIRED AS A LAWYER AFTER GRADUATION AND HAD TO TAKE A SECRETARIAL JOB SHE RAISED THREE CHILDREN AND STAYED OUT OF THE WORK FORCE FOR FOUR YEARS LATER SHE SPENT MUCH OF HER CAREER WORKING FOR THE CALIFORNIA BAR ASSOCIATION DEVELOPING CONTINUING LEGALEDUCATION PROGRAMS FOR ATTORNEYS SHE HAS BEEN A MUNICIPAL JUDGE IN BERKELEY CALIF FOR THE PAST 14 YEARS RUTH BADER GINSBURG WAS MARRIED AND A YOUNG MOTHER WHILE IN LAW SCHOOL AS WELL AS THE SOLE WOMAN IN HER CLASS TO SERVE ON THE HARVARD LAW REVIEW SHE TRANSFERRED TO COLUMBIA UNIVERSITY LAW SCHOOL FOR HER FINAL YEAR WHEN HER HUSBAND STARTED A JOB IN A NEW YORK LAW FIRM ALTHOUGH SHE TIED FOR FIRST IN HER GRADUATING LAWSCHOOL CLASS AS A FEMALE SHE WAS INELIGIBLE FOR A COVETED SUPREME COURT CLERKSHIP JUDGE GINSBURG TAUGHT FOR MANY YEARS AT RUTGERS UNIVERSITY LAW SCHOOL AFTER HARVARD LAW SCHOOL DELIBERATED TOO LONG ABOUT WHETHER TO OFFER HER A FACULTY POSITION SHE BECAME THE FIRST FEMALE TENURED PROFESSOR AT COLUMBIA LAW SCHOOL JUDGE GINSBURG FOUNDED THE WOMEN'S RIGHTS PROJECT AT THE AMERICAN CIVIL LIBERTIES UNION AND WON FIVE OF SIX CASES BEFORE THE SUPREME COURT SHE WAS APPOINTED BY PRESIDENT CARTER TO THE DC CIRCUIT COURT OF APPEALS AND BY PRESIDENT CLINTON TO THE SUPREME COURT RHODA ISSELBACHER JOINED THE HARVARD LAW SCHOOL CLASS OF 1959 DURING ITS SECOND YEAR SHE GAVE BIRTH TO TWO CHILDREN WHILE IN LAW SCHOOL AND WORKED PART TIME AT A SMALL BOSTON LAW FIRM WHILE HER CHILDREN WERE YOUNG MARRIED TO A PROMINENT PHYSICIAN SHE WORKED FOR YEARS AS COUNSEL TO THE DANA FARBER CANCER INSTITUTE IN BOSTON NOW WITH THE LAW FIRM OF EDWARDS & ANGELL IN BOSTON SHE DEVELOPED A LEGAL SPECIALITY IN THE LAW PERTAINING TO TECHNOLOGY TRANSFER AND REPRESENTS SEVERAL CLIENTS IN ACADEMIA WILTRUD MOTTSMITH LEFT LAW SCHOOL AFTER THE FIRST YEAR AND MOVED TO ENGLAND VIRGINIA NORDIN BEGAN HER CAREER WITH A PRESTIGIOUS CLERKSHIP FOR A FEDERAL JUDGE THEN HELD VARIOUS LEGAL AND EDUCATIONAL POSTS BUT SHE SPENT THE BULK OF HER CAREER FOLLOWING HER HUSBAND'S JOB SWITCHES MS NORDIN RAISED HER TWO CHILDREN IN HANOVER NH WHILE HER HUSBAND LAUNCHED AN ARABIAN HORSE BUSINESS NOW SEPARATED FROM HER HUSBAND SHE RECENTLY RECEIVED TENURE IN THE EDUCATION DEPARTMENT AT THE UNIVERSITY OF KENTUCKY MARILYN ROSE SPENT MOST OF HER CAREER AS A LAWYER FOR LABOR UNIONS PUBLICINTEREST GROUPS AND FOR THE FEDERAL GOVERNMENT IN WASHINGTON IN THE LATE 1980S SHE MOVED WITH HER HUSBAND TO FLORIDA WHERE SHE JOINED THE FACULTY OF FLORIDA'S NOVA LAW SCHOOL JUDGE ROSE NOW SERVES AS AN ADMINISTRATIVE LAW JUDGE IN SAVANNAH GA FLORA SCHNALL WAS REBUFFED BY NEW YORK LAW FIRMS AFTER GRADUATION BUT FOUND A JOB WITH NEW YORK GOV NELSON ROCKEFELLER WHICH LED TO A POSITION AT NEW YORK'S MILBANK TWEED HADLEY & MCCLOY THE LAW FIRM THAT REPRESENTS THE ROCKEFELLER FAMILY INTERESTS SHE HANDLES REALESTATE TRANSACTIONS AT WALL STREET'S DONALDSON LUFKIN & JENRETTE AND SERVES AS COUNSEL TO THE LAW FIRM OF GIBSON DUNN & CRUTCHER BETTY JEAN SHEA MARRIED TO ANOTHER HARVARD LAW GRAD RECENTLY RETIRED FROM A LONG CAREER AT THE WELLS FARGO BANK WHERE SHE HEADED THE LEGAL DEPARTMENT IN LOS ANGELES SHE HAD DIFFICULTY FINDING JOBS RIGHT OUT OF LAW SCHOOL BUT BEGAN HER CAREER AT THE FEDERAL RESERVE BANK OF NEW YORK ALICE STROH BEGAN HER CAREER WITH A PLUM JOB AT MONSANTO CORP IN ST LOUIS THEN QUIT TO REMAIN HOME UNTIL HER TWO CHILDREN REACHED COLLEGE AGE DIVORCED FROM HER ATTORNEY HUSBAND MS STROH RETURNED TO WORK AS A PARALEGAL AT THE LAW FIRM HUSCH & EPPENBERGER WHERE SHE IS NOW AN ASSOCIATE SPECIALIZING IN ESTATE PLANNING ELEANOR VOSS DIED IN A TRAFFIC ACCIDENT DURING LAW SCHOOL SEE RELATED STORY CLASS OF DISTINCTION WOMEN FIND SUCCESS AFTER HARVARD LAW '59 DESPITE THE DIFFICULTIES JUDGE GINSBURG'S CLASSMATES BALANCED LIVES CAREERS HELPED SHAPE PROFESSION ECSTATIC' OVER APPOINTMENT WSJ JULY 20 1993 9307200099 930720 BUSINESS BRIEF JAMESWAY FILES FOR BANKRUPTCY SHIELD GETS 75 MILLION CREDIT LINE TO OPERATE SECAUCUS NJ DISCOUNT RETAILER JAMESWAY CORP SAID IT FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AND HAS OBTAINED A 75 MILLION CREDIT LINE TO CONTINUE OPERATIONS THE RETAILER WHICH OPERATES 108 STORES IN SEVEN MIDATLANTIC STATES HAS SEEN ITS TRADE CREDIT CUT OFF FOLLOWING DISCLOSURE THAT IT WAS HAVING DIFFICULTIES RENEGOTIATING ITS BANK LENDING AGREEMENT JAMESWAY HAS BLAMED THE DIFFICULT RETAIL BUSINESS CLIMATE AS WELL AS A SEVERE WINTER FOR ITS RECENT SALES DECLINE CONCERNED ABOUT THE COMPANY'S FINANCIAL VIABILITY JAMESWAY'S VENDORS STOPPED SHIPPING MERCHANDISE ABOUT TWO WEEKS AGO AND CUT OFF ITS TRADE CREDIT THE COMPANY THEN APPOINTED AN INVESTMENT BANKER HOWARD CURD AS CHAIRMAN TO OVERSEE ITS RESTRUCTURING IN THE FACE OF THIS LIQUIDITY CRISIS MR CURD SAID IN AN ANNOUNCEMENT THAT THE FILING WAS INTENDED TO PRESERVE THE COMPANY'S ASSETS AND RESTORE CUSTOMER AND VENDOR CONFIDENCE THE COMPANY WHICH EMPLOYS ABOUT 7100 PEOPLE HAD SALES LAST YEAR OF 873 MILLION JOSEPH ETTORE JAMESWAY'S PRESIDENT CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER SAID EVERY STORE IS BEING REVIEWED TO ENSURE ITS MAXIMUM COMPETITIVENESS AND PROFITABILITY A COMPANY SPOKESMAN SAID JAMESWAY EXPECTS THAT THE FLOW OF MERCHANDISE TO THE RETAIL STORES AND DISTRIBUTION CENTER WILL RESUME RIGHT AWAY ED JOHNSON AN ANALYST FOR JOHNSON REDBOOK SERVICE A DIVISION OF THE BROKERAGE FIRM LYNCH JONES & RYAN OF NEW YORK SAID HE THINKS IT IS LIKELY THAT JAMESWAY WILL HAVE TO CLOSE SOME UNPROFITABLE STORES JAMESWAY'S FILING LISTED ASSETS OF 336 MILLION AND LIABILITIES OF 277 MILLION BUT EXCLUDED CONTINGENT UNSECURED DEBT OF 362 MILLION IT HAS HAD THREE CONSECUTIVE YEARS OF LOSS INCLUDING A NET LOSS IN 1992 OF 47 MILLION ON SALES OF 873 MILLION SALES FOR THE 22 WEEKS ENDED JUNE 30 WERE 2926 MILLION DOWN 13 FROM THE YEAREARLIER PERIOD CONSIDERING JAMESWAY'S CONTINUING PROBLEMS THE FILING IS NOT A SURPRISE SAYS LINDA KRISTIANSEN AN ANALYST AT WERTHEIM SCHROEDER IN NEW YORK JAMESWAY ESTIMATES THAT IT WILL HAVE A NET CASH USE OF ABOUT 95 MILLION FOR THE NEXT 30 DAYS ACCORDING TO THE FILING IN ITS FILING JAMESWAY ATTRIBUTES ITS FINANCIAL DIFFICULTIES TO THE RECENT RECESSION WHICH HAS HAD A PARTICULARLY NEGATIVE IMPACT ON THE RETAIL INDUSTRY BECAUSE OF THIS ENVIRONMENT JAMESWAY NEGOTIATED AN EXTENSION OF ITS SENIOR DEBT VENDORS GREW CONCERNED AND REFUSED TO SHIP GOODS ON ORDINARY CREDIT TERMS WHEN THE NEGOTIATIONS BECAME UNEXPECTEDLY LENGTHY THE COMPANY SAID SEVERE WEATHER THIS WINTER HIT FIRSTQUARTER SALES WHICH FELL 14 AND LED TO A FURTHER CONTRACTION IN CREDIT HOWEVER JAMESWAY SAID IN THE FILING THAT IT IS A FUNDAMENTALLY SOUND AND VALUABLE BUSINESS WITH A STRONG CUSTOMER BASE THE SPOKESMAN NOTED THAT THE COMPANY IS NOT RUNNING OUT OF CASH IT'S NOT DEFAULTING ON BANK LOANS THE RETAILER'S UNSECURED DEBT TOTALS ABOUT 572 MILLION WITH 9752 CREDITORS THE RETAILER'S LARGEST UNSECURED CREDITORS WITH CLAIMS IN EXCESS OF 10 MILLION EACH INCLUDE MASSACHUSETTS MUTUAL LIFE INSURANCE CO OF SPRINGFIELD MASS HARRIS TRUST AND SAVINGS BANK OF CHICAGO A UNIT OF HARRIS BANKCORP INC FIRST FIDELITY BANCORP OF NEWARK NJ MARINE MIDLAND BANK OF NEW YORK A UNIT OF HSBC HOLDINGS PLC AND MERRILL LYNCH LIFE INSURANCE CO OF PLAINSBORO NJ A UNIT OF MERRILL LYNCH & CO SPOKESMEN FOR THE CREDITORS DECLINED TO COMMENT THE COMPANY IS EXPECTED TO MEET WITH MAJOR CREDITORS AND VENDORS IN THE NEXT FEW DAYS 9307200098 930720 POLITICS & POLICY CLINTON DISMISSES FBI DIRECTOR SESSIONS FREEH EXPECTED TO BE NOMINATED FOR POST BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON FIRED FEDERAL BUREAU OF INVESTIGATION DIRECTOR WILLIAM SESSIONS AND IS EXPECTED TO ANNOUNCE THE NOMINATION OF FEDERAL JUDGE LOUIS FREEH TO HEAD THE AGENCY MR CLINTON'S DECISION CAME SIX MONTHS AFTER A BUSH ADMINISTRATION JUSTICE DEPARTMENT REPORT CHARGED MR SESSIONS WITH SUCH ETHICAL VIOLATIONS AS MISUSING GOVERNMENT AIRCRAFT AND AUTOMOBILES FOR PERSONAL PURPOSES THOUGH MR SESSIONS REBUTTED SOME OF THE ALLEGATIONS HIS ABILITY TO EFFECTIVELY RUN THE AGENCY WAS INCREASINGLY QUESTIONED BY CLINTON ADMINISTRATION OFFICIALS AFTER A THOROUGH REVIEW BY THE ATTORNEY GENERAL OF MR SESSIONS' LEADERSHIP OF THE FBI SHE HAS REPORTED TO ME IN NO UNCERTAIN TERMS THAT HE CAN NO LONGER EFFECTIVELY LEAD THE BUREAU AND LAW ENFORCEMENT COMMUNITY MR CLINTON TOLD A WHITE HOUSE NEWS CONFERENCE THE PRESIDENT SAID HE FULLY AGREES WITH ATTORNEY GENERAL JANET RENO'S RECOMMENDATION BUT ADDED THAT MR SESSIONS DESERVES THE SUPPORT AND THANKS OF THE AMERICAN PEOPLE FOR TRYING TO BROADEN THE MEMBERSHIP OF THE FBI BY INCREASING THE NUMBER OF BLACK HISPANIC AND FEMALE AGENTS IN HER LETTER TO THE PRESIDENT CALLING FOR THE DIRECTOR'S DISMISSAL MS RENO SAID THAT AFTER REVIEWING THE ALLEGATIONS AGAINST MR SESSIONS AND HIS RESPONSES TO THEM I HAVE CONCLUDED THAT THE DIRECTOR HAS EXHIBITED A SERIOUS DEFICIENCY IN JUDGMENT INVOLVING MATTERS CONTAINED IN THE REPORT AND THAT HE DOES NOT COMMAND THE RESPECT AND CONFIDENCE NEEDED TO LEAD THE BUREAU AND THE LAW ENFORCEMENT COMMUNITY AT A JUSTICE DEPARTMENTAPPROVED NEWS CONFERENCE HASTILY CALLED AFTER HE WAS FIRED MR SESSIONS SAID THAT IN ORDER TO PROTECT THE FBI FROM POLITICIZATION HE REFUSED TO RESIGN AS MS RENO HAD ASKED NOW BECAUSE OF SCURRILOUS ATTACKS ON ME AND MY WIFE OF 42 YEARS IT HAS BEEN DECIDED BY OTHERS THAT I CAN NO LONGER BE AS FORCEFUL AS I NEED TO BE IN LEADING THE FBI AND CARRYING OUT MY RESPONSIBILITIES TO THE BUREAU AND THE NATION HE SAID IT IS BECAUSE I BELIEVE IN THE PRINCIPLE OF AN INDEPENDENT FBI THAT I HAVE REFUSED TO VOLUNTARILY RESIGN MR SESSIONS SAID HE RECEIVED TWO PHONE CALLS FROM PRESIDENT CLINTON BETWEEN 350 PM AND 359 PM IN THE FIRST CALL MR CLINTON TOLD MR SESSIONS HE WAS FIRED THE PRESIDENT THEN CALLED BACK A FEW MINUTES LATER MR SESSIONS SAID TO TELL ME THAT WAS EFFECTIVE IMMEDIATELY SO IMMEDIATE WAS THE EFFECT THAT AT THE NEWS CONFERENCE HELD ABOUT AN HOUR AFTER THE FIRING MR SESSIONS SAID THAT I AM IN THE BUILDING AS A VISITOR AND MUST BE ESCORTED THROUGHOUT THE FBI HEADQUARTERS AS ALL VISITORS ARE THE DEPARTING FBI CHIEF RECEIVED SUPPORT FROM REP HENRY GONZALEZ THE DEMOCRATIC REPRESENTATIVE FROM MR SESSIONS' HOME TOWN OF SAN ANTONIO TEXAS MR SESSIONS WAS A VICTIM OF A HATCHET JOB SAID REP GONZALEZ AND WAS CUT DOWN BY INTRIGUERS IN THE FBI AND THE DISCREDITED BUSH ATTORNEY GENERAL WHO MANUFACTURED A CRISIS FUELED IT WITH WHISPERS AND BURNED UP A MAN OF IMPECCABLE DECENCY FRIENDS OF JUDGE FREEH HAVE BEEN INVITED TO A ROSE GARDEN CEREMONY FOR THE ANNOUNCEMENT OF HIS APPOINTMENT TODAY THE 43YEAROLD DISTRICT JUDGE HAS SPENT HIS ENTIRE CAREER IN GOVERNMENT SERVICE MOST OF THAT TIME IN LAW ENFORCEMENT AS AN FBI AGENT AND A FEDERAL PROSECUTOR JUDGE FREEH GAINED NATIONAL RECOGNITION IN 1990 WHEN HE WAS SENT TO ATLANTA TO LEAD THE PROBE INTO AND ULTIMATELY SUCCESSFUL PROSECUTION OF A MAIL BOMBER WHO KILLED US CIRCUIT JUDGE ROBERT VANCE PRIOR TO THE CASE MOST OF JUDGE FREEH'S WORK INVOLVED INVESTIGATING ORGANIZED CRIME JUDGE FREEH A NATIVE OF JERSEY CITY NJ GRADUATED FROM RUTGERS UNIVERSITY LAW SCHOOL IN 1974 AND JOINED THE FBI A YEAR LATER HE BECAME AN ASSISTANT US ATTORNEY IN 1981 AND WAS APPOINTED TO THE BENCH BY PRESIDENT BUSH IN 1991 HE IS MARRIED AND HAS FOUR SONS FLOYD CLARKE UNTIL YESTERDAY THE FBI'S DEPUTY DIRECTOR WAS APPOINTED ACTING DIRECTOR UNTIL MR CLINTON'S CHOICE IS CONFIRMED BY THE SENATE MR CLARKE IS WIDELY RESPECTED WITHIN THE BUREAU AND CONGRESS WHEN MR SESSIONS AND HIS WIFE ALICE QUESTIONED MR CLARKE'S LOYALTY TO MR SESSIONS SEVERAL MONTHS AGO IT SEVERELY DAMAGED MR SESSIONS' SUPPORT WITHIN THE BUREAU IT WAS MR CLARKE WHO TOLD MR SESSIONS THAT A PROPOSED FENCE AROUND HIS HOME WOULDN'T PROVIDE HIM ADEQUATE PROTECTION AND THEREFORE SHOULDN'T BE CHARGED TO THE GOVERNMENT MR SESSIONS AND HIS WIFE HAD THE FENCE BUILT ANYWAY AND BILLED THE GOVERNMENT THE REPORT DONE BY THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY CALLED ON MR SESSIONS TO REIMBURSE THE GOVERNMENT MR SESSIONS ALSO WAS CHARGED WITH ARRANGING BUSINESS TRIPS TO TEXAS AND CALIFORNIA SO THAT HE COULD VISIT RELATIVES AND WITH DEVISING A SHAM ARRANGEMENT TO AVOID PAYING INCOME TAXES ON THE VALUE OF HIS GOVERNMENT PROVIDED DOORTODOOR TRANSPORTATION MR SESSIONS CLAIMED A LAW ENFORCEMENT VEHICLE TAX EXEMPTION EVEN THOUGH THE BASIS FOR THAT EXEMPTION WAS AN UNLOADED GUN LOCKED IN THE TRUNK OF HIS OFFICIAL CAR THOUGH HE CONSISTENTLY DENIED CHEATING THE GOVERNMENT SHORTLY AFTER THE REPORT WAS ISSUED MR SESSIONS SAID HE PAID THE GOVERNMENT THE MONEY THE REPORT SAID HE OWED WITH A FEW DISPUTED EXCEPTIONS JONATHAN M MOSES IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9307200097 930720 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JULY 7 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9307200096 930720 LETTERS TO THE EDITOR SOMETIMES GOOD SENSE MUST BE LEGISLATED THE LOGIC OF LINDLEY CLARK'S JULY 2 EDITORIAL PAGE ARTICLE THE PAY GAP NARROWS SLOWLY IS ASTONISHING AFTER ARTICULATING ALL THE REASONS WHY WOMEN HAVE DONE MUCH BETTER IN CLOSING THE PAY GAP IN ALMOST EVERY OTHER INDUSTRIALIZED COUNTRY HE CONCLUDES SUCH MECHANISMS AS CENTRALIZED WAGESETTING SYSTEMS OR GREATER UNIONIZATION ARE NOT THE ANSWER FOR THE US RATHER HE SUGGESTS A GOOD DOSE OF COMMON SENSE WILL SOMEHOW CORRECT THE INEQUITY FOR WOMEN AND PEOPLE OF COLOR EVEN IF THAT CONCLUSION MADE SENSE HOW LONG SHOULD WE WAIT AND HOW MUCH SHOULD WE LOSE IN THE MEANTIME THE EQUAL PAY ACT WAS PASSED 30 YEARS AGO AND WE STILL HAVE A 30 WAGE GAP EVERY YEAR ALL FULLTIME WORKING WOMEN LOSE ABOUT 100 BILLION IN EARNINGS DUE TO WAGE DISCRIMINATION EACH WOMAN IS SHORTCHANGED ABOUT 470000 OVER HER LIFETIME THE WAGE GAP ACTUALLY GOT BIGGER IN 1991 AND WHEN IT NARROWED IN THE PAST DECADE IT HAD AS MUCH TO DO WITH MEN'S WAGES GOING DOWN AS WOMEN'S WAGES GOING UP COMMON SENSE IS AN ARGUMENT THAT APPEALS TO OUR INDIVIDUAL LEVEL OF RESPONSIBILITY IF IT WORKED AS THE INCENTIVE IT SHOULD WE WOULDN'T NEED STOP SIGNS AT BUSY STREET CORNERS HEALTH AND SAFETY REQUIREMENTS AT WORK OR LICENSING FOR DOCTORS AND NURSES THE FACT IS WHEN SIGNIFICANT SOCIAL AND ECONOMIC QUESTIONS ARISE ORGANIZATIONS AND GOVERNMENTS OFTEN MEDIATE THE DIFFERENCES IN WHAT MAKES SENSE BETWEEN THE COMPETING INTERESTS OF INDIVIDUALS 9307200095 930720 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 3 1/16 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 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 312 30 DAYS 315 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 266 THREE MONTHS 285 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 310 ONE MONTH 315 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 305 60 DAYS 306 90 DAYS 309 120 DAYS 311 150 DAYS 319 180 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 5/16 3 3/16 FIVE MONTHS 3 7/16 3 5/16 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 689 60 DAYS 696 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 682 60 DAYS 692 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9307200094 930720 THEIR FAVORITE THING IS COLTRANE'S MUSIC ON SUNDAY MORNING THE JAZZ SAXOPHONIST IS A SAINT TO THESE HIP CONGREGANTS WHO WORSHIP HIS SOUND BY WENDY WALL SPECIAL TO THE WALL STREET JOURNAL SAN FRANCISCO UNDER A GIANT PAINTING OF JAZZ LEGEND JOHN COLTRANE THE BAND IS COOKING SWEAT BEADS ON THE TEMPLES OF A DREADLOCKED DRUMMER ONE OF THE SINGERS CLOSES HER EYES AS SHE CROONS AND A SOLOIST CLAD IN BLACK WAILS ON A SOPRANO SAXOPHONE IT IS A SCENE OUT OF ANY NUMBER OF JAZZ JOINTS THROUGHOUT THIS CITY BUT THIS PARTICULAR BOITE HAPPENS TO BE ST JOHN'S AFRICAN ORTHODOX CHURCH OR AS IT IS KNOWN TO A GROWING CIRCLE OF PARISHIONERS AND FANS THE CHURCH OF ST JOHN COLTRANE IN THIS COMBO THE INSTRUMENTALISTS WEAR WHITE COLLARS AND THE SINGERS ARE SISTERS OF COMPASSION THE SOLOIST SPORTS THE FUCHSIA SKULLCAP OF A BISHOP FOLKS HERE DON'T JUST REVERE THE PIONEERING SAXOPHONIST WHOM ONE CRITIC DUBBED THE JAZZ MESSIAH THEY HAVE DECLARED MR COLTRANE A SAINT WE CALL HIM THE DIVINE SOUND BAPTIST' SAYS BISHOP FRANZO KING A FORMER HAIRDRESSER WHO FOUNDED THE CHURCH PICTURES OF THE JAZZ MUSICIAN AND COMPOSER CLUTTER THE WALLS OF THIS TINY STOREFRONT CHURCH TWO BLOCKS OFF HAIGHT STREET SERVICES OFTEN RUN NEARLY FOUR HOURS AND CONSIST OF A MUSICAL LITURGY BASED ON THE SAXOPHONIST'S LATE PERIOD THERE ARE THREE GOSPEL READINGS TWO FROM THE NEW TESTAMENT AND ONE FROM THE CHURCH'S PATRON SAINT TO SOME MR COLTRANE SEEMS AN UNLIKELY CANDIDATE FOR CANONIZATION THE INFLUENTIAL JAZZMAN BEST KNOWN FOR HIS ENERGETIC SOLOS AND WILD EXPERIMENTATION WITH RHYTHM AND CHORDS WAS A HEROIN ADDICT WHO USED ALCOHOL TO DULL THE PAIN OF ROTTING TEETH A COMPULSIVE OVEREATER HE KEPT TWO SETS OF SUITS FAT AND THIN HE SOMETIMES FELL ASLEEP DURING CONCERTS AND WAS FIRED FROM A BAND BY MILES DAVIS THAT'S HIS SERMON ON THE MOUNT SAYS SISTER MARY DEBORAH THE CHURCH'S PRESIDENT IN 1967 THE JAZZMAN DIED OF LIVER CANCER HE WAS 40 YEARS OLD BISHOP KING FIRST HEARD MR COLTRANE PLAY IN SAN FRANCISCO IN 1965 THE BISHOP NOW 48 CALLS THAT CONCERT HIS CALL TO GOD HE BOUGHT A SAXOPHONE AND IN 1971 CONVERTED A ROOM IN HIS APARTMENT INTO A CHAPEL AND FOUNDED THE ONE MIND TEMPLE EVOLUTIONARY TRANSITIONAL BODY OF CHRIST DEDICATED TO THE MAN WHO HAD INSPIRED HIS FAITH EVOLUTION AND TRANSITION WERE TAKEN FROM TWO ALBUMS HE SAYS THE NEXT YEAR ON SEPTEMBER 23 MR COLTRANE'S BIRTHDAY THE CHURCH MOVED TO ITS PRESENT LOCATION IN 1982 IT AFFILIATED WITH A BRANCH OF THE AFRICAN ORTHODOX CHURCH A BLACK CHURCH LOOSELY TIED TO THE GREEK AND RUSSIAN ORTHODOX RELIGIONS THE CHURCH CHANGED ITS NAME AND MR KING WAS MADE A BISHOP THAT BRANCH OF THE AFRICAN ORTHODOX CHURCH ACKNOWLEDGES MR COLTRANE'S SAINTHOOD THAT ISN'T AS UNORTHODOX AS IT SOUNDS SAYS HARVEY COX A HARVARD UNIVERSITY THEOLOGIAN BOTH THE ORTHODOX AND ROMAN CATHOLIC CHURCHES CANONIZE CONTEMPORARY SAINTS AND MR COLTRANE CLEARLY INCORPORATED SPIRITUAL VISION INTO HIS LATER WORK IN SOME WAYS JOHN COLTRANE HAS AS GOOD A CLAIM TO SAINTHOOD AS MANY OTHERS MR COX SAYS ADDING I SHOULD NOTE THAT I ALSO PLAY SAX IN ANY CASE ST JOHN'S SUCCESS REFLECTS A GROWING TENDENCY FOR POPULAR MUSIC TO SUPPLEMENT OR EVEN SUPPLANT MORE TRADITIONAL FORMS OF WORSHIP SOME EXPERTS SAY MUSIC AND SPIRITUALITY HAVE ALWAYS BEEN LINKED BUT ONLY IN THE PAST FEW YEARS HAVE EXPLICITLY CHRISTIAN ARTISTS LIKE SINGERS AMY GRANT AND MICHAEL W SMITH HIT THE TOP OF CHARTS THE HARE KRISHNAS HAVE A ROCK BAND NAMED SHELTER AND SOME GRATEFUL DEAD DEVOTEES KNOWN AS SPINNERS TRY TO ATTAIN A QUASIRELIGIOUS EUPHORIA BY IMITATING WHIRLING DERVISHES PEOPLE ARE LOOKING FOR A SENSE OF TRANSCENDENCE AND CONNECTEDNESS TO EACH OTHER AND MUSIC IS A NATURAL PLACE FOR THEM TO FIND THOSE BONDS SAYS GRAEME BOONE A MUSIC HISTORIAN AT HARVARD AT ST JOHN'S ONE BRIGHT SUNDAY IT IS A FULL HOUSE WHILE OTHER CHURCHES MAY COMPLAIN OF EMPTY PEWS THE MULTIRACIAL CROWD AT ST JOHN'S SPILLS OUT THE DOOR A COUPLE IN TONY JACKETS SQUEEZE ONTO A BENCH WITH YOUTHS SPORTING PIERCED NOSES A YOUNG CONGREGANT IN A TATTERED TSHIRT PULLS OUT HIS SAXOPHONE A TINY GIRL IN A FRILLY DRESS TODDLES DOWN THE AISLE WHILE AN ELDERLY WOMAN TAPS HER FEET I THINK SUNDAY MORNING AT 11 IS THE MOST SEGREGATED HOUR IN THE NATION BISHOP KING SAYS MANY CHURCHES TALK ABOUT THE FATHERHOOD OF GOD AND THE BROTHERHOOD OF MAN BUT ON SUNDAY MORNING WHITE FOLKS WANT TO WORSHIP WITH WHITE FOLKS CHINESE WANT TO WORSHIP WITH CHINESE AND THE AFRICANS WANT TO WORSHIP WITH THE AFRICANS PART OF THE POWER OF MR COLTRANE'S MUSIC BISHOP KING BELIEVES IS ITS BROAD APPEAL MAX HUMMINGFISH A YOUNG MAN WITH BLOND DREADLOCKS GYRATES WILDLY IN THE AISLE AS HE BANGS ON A BORROWED TAMBOURINE RAISED CONGREGATIONALIST IN LONG ISLAND NY MR HUMMINGFISH NOW LIVES IN A SCHOOL BUS IN THE SANTA CRUZ CALIF MOUNTAINS FOR THE LAST TWO YEARS HE HAS BEEN MAKING THE HOURLONG DRIVE TO ST JOHN'S TWICE A MONTH TO ENJOY THE MUSIC KATE GRIFFITH AN ASPIRING JAZZ SINGER AND LAPSED ROMAN CATHOLIC VISITED THE CHURCH ONCE AND NOW SINGS IN THE CHOIR THERE'S JUST SOMETHING SO MAGICAL THAT GOES ON HERE SHE SAYS MOST LONGTIME CHURCH MEMBERS ARE JAZZ ENTHUSIASTS BUT THEY BELIEVE THAT ONLY MR COLTRANE BECAUSE OF HIS RELIGIOUS INSPIRATION MERITS THE STATUS OF SAINT FOR YEARS THEY WOULDN'T EVEN SPEAK THE SAXOPHONIST'S NAME IN THE SAME BREATH WITH THAT OF OTHER JAZZ GREATS LIKE CHARLIE PARKER AND THELONIOUS MONK CHURCH MEMBERS EVEN SEE SPECIAL SIGNIFICANCE IN MR COLTRANE'S MIDDLE NAME WILLIAM THE FINAL THREE LETTERS OF WHICH ECHO GOD'S WORDS TO MOSES FROM THE BURNING BUSH MORE THAN AN HOUR INTO THE SERVICE BISHOP KING RISES TO DELIVER THE SERMON A WIRY MAN WITH A QUICK GRIN AND A SLY SENSE OF HUMOR BISHOP KING APPEALS FOR A RETURN TO OLDTIME RELIGION HE IS GREETED WITH AMENS AND HALLELUJAHS AS THE SERMON ENDS THE SMELL OF SPAGHETTI WAFTS INTO THE SANCTUARY THREE TIMES A WEEK THE CHURCH FEEDS THOSE IN NEED THE CHURCH ALSO PROMOTES ITS PATRON SAINT'S MUSIC A CHURCH BAND PACKS LOCAL CLUBS AND GIVES FREE MUSIC LESSONS TO THE POOR ST JOHN'S ALSO IS HOST TO A RADIO SHOW FEATURING COLTRANE COMPOSITIONS THE CHURCH'S MUSICIANS BREAK INTO AN EXUBERANT FINALE IF PEOPLE AREN'T QUITE DANCING IN THE AISLES THEY ARE CERTAINLY DANCING IN THE PEWS SURVEYING THE CROWD BISHOP KING GRINS BROADLY RAISES HIS SAXOPHONE TO HIS LIPS AND PRAYS AND WHAT WOULD ST JOHN HAVE THOUGHT OF ALL THIS PASTOR JOHN GENSEL OF ST PETER'S EVANGELICAL LUTHERAN CHURCH IN MANHATTAN WHO DELIVERED A EULOGY AT MR COLTRANE'S FUNERAL SAYS I THINK HE'D HAVE LOVED IT 9307200093 930720 CREDIT MARKETS CHINESE FIRM PLANS US OFFERING WITH DEMAND EXPECTED TO BE HEALTHY FOR ISSUE'S HIGH YIELD BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR THE FIRST TIME SINCE 1949 A CHINESE BORROWER PLANS TO TAP THE US PUBLIC BOND MARKETS THE LATEST IN THE LENGTHENING LINE OF FOREIGN ISSUERS TO ANNOUNCE PLANS TO TAP THE US BOND MARKET IS THE CHINA INTERNATIONAL TRUST & INVESTMENT CORP A STATEOWNED HOLDING COMPANY WHOSE PRINCIPAL ACTIVITY IS TO PROVIDE LOANS AND EQUITY FINANCING FOR JOINT VENTURES AND OTHER PROJECTS IN CHINA THE COMPANY IS ALSO CHINA'S INTERNATIONALINVESTMENT ARM THE ISSUE IS EXPECTED TO OFFER A HIGH YIELD RELATIVE TO US TREASURYS BUT WILL ALSO CARRY A LOW INVESTMENTGRADE RATING EARLIER THIS YEAR THE GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP SOLD 150 MILLION OF FIVEYEAR NOTES BUT THAT OFFERING WAS IN THE EUROBOND MARKET WHICH IS CLOSED TO MANY AMERICAN INVESTORS CHINA INTERNATIONAL MADE FILINGS EARLIER THIS MONTH WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 150 MILLION OF DOLLARDENOMINATED 10YEAR YANKEE NOTES THROUGH A GROUP OF UNDERWRITERS LED BY GOLDMAN SACHS & CO A YANKEE NOTE IS A SECURITY SOLD BY A FOREIGN ISSUER IN THE US AND DENOMINATED IN DOLLARS BECAUSE OF GROWING INVESTOR APPETITE FOR RISKIER HIGHERYIELDING SECURITIES SOME MONEY MANAGERS BELIEVE THAT THE ISSUE WILL BE SNAPPED UP WHEN IT COMES TO MARKET EARLY NEXT WEEK THAT'S BECAUSE MANY INVESTORS ARE DISSATISFIED WITH THE LOW YIELDS THEY'RE FINDING IN MOST OTHER US BOND MARKETS BUT THERE IS SOME CONCERN THAT THE YIELD FOR THE PLANNED OFFERING WILL BE MUCH TOO LOW FOR AN ISSUER IN A COUNTRY WITH A GREAT POTENTIAL FOR POLITICAL TURMOIL YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND YIELDED 654 UNCHANGED FROM FRIDAY FOR A PRICE OF 107 18/32 THE YIELD OF 654 IS THE LOWEST SINCE THE GOVERNMENT LAUNCHED REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 THE 10YEAR NOTE YIELDED 569 ALSO UNCHANGED FROM FRIDAY FOR A PRICE OF 104 2/32 MOST OTHER TREASURY SECURITIES WERE LITTLE CHANGED DESPITE A SIZABLE JUMP IN COMMODITIES PRICES AS MEASURED BY THE COMMODITY RESEARCH BUREAU'S INDEX THE NOTES HAVE BEEN GIVEN LOW INVESTMENTGRADE RATINGS BY STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC S&P RATED THE ISSUE TRIPLEB YESTERDAY WITH A POSITIVE OUTLOOK WHILE MOODY'S RATED THE ISSUE BAA1 LAST WEEK THE SCARCITY OF INVESTMENTGRADE OFFERINGS FROM SOCALLED DEVELOPING NATIONS WILL MAKE FOR STRONG DEMAND WHEN THE ISSUE COMES TO MARKET NEXT WEEK ACCORDING TO G CLIFFORD MCCARTHY JR HEAD OF FIXEDINCOME INVESTMENTS AT BULL & BEAR GROUP INC BULL & BEAR HAS ABOUT 12 OF ITS FIXEDINCOME ASSETS OF 150 MILLION INVESTED IN EMERGINGMARKET DEBT PAPER THERE WILL BE A LOT OF INTEREST IN IT HE SAID BECAUSE THERE HAVEN'T BEEN CAPITAL MARKETS DEVELOPED FOR MOST OF THE ASIAN COUNTRIES ACCORDING TO MR MCCARTHY CHINA INTERNATIONAL WILL PROBABLY INCREASE THE SIZE OF THE DEAL BECAUSE OF INVESTOR DEMAND BUT ONE OF THE BIGGEST NAMES IN THE FIELD OF EMERGINGMARKET BOND INVESTORS ROBERT BECKWITT A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IS NOT AS OPTIMISTIC ABOUT THE ISSUE WE ARE PROBABLY NOT GOING TO PARTICIPATE IN IT HE SAID THE SPREAD OVER TREASURYS IS TOO SMALL RELATIVE TO THE COUNTRY RISK ESPECIALLY IF CHINA DECIDES TO GO IN THE OPPOSITE DIRECTION POLITICALLY IN THE NEXT 15 YEARS MR BECKWITT SAYS THAT THE OPPORTUNITIES FOR HIGHER YIELDS IN LATIN AMERICAWHERE YIELD SPREADS ARE THREE TO FOUR PERCENTAGE POINTS ABOVE TREASURYS AND WHERE SOME CREDITS WILL BECOME INVESTMENT GRADE SOON ARE MUCH MORE ATTRACTIVE ACCORDING TO GUILLERMO ESTEBANEZ A CREDIT ANALYST AT MOODY'S THE FACTS THAT CHINA INTERNATIONAL IS A QUASIGOVERNMENT ENTITY AND THAT CHINA HAS BEEN BETTER ABOUT PAYING ITS DEBTS THAN LATIN AMERICAN NATIONS ARE PART OF THE REASON FOR THE INVESTMENTGRADE RATINGS AN IMPORTANT MEASURE OF THE COUNTRY'S ABILITY TO SERVICE ITS DEBT HE POINTED OUT IS THE RATIO OF FOREIGN CURRENCY DEBT TO EXPORT RECEIPTS IN CHINA THAT RATIO IS 73 COMPARED WITH 212 FOR VENEZUELA AND 254 FOR MEXICO IN PURELY ECONOMIC TERMS THE NOTES ARE VERY STRONG HE SAID IT'S THE POLITICAL ASPECT THAT KEEPS ITS CREDIT RATING RELATIVELY LOW SAID MR ESTEBANEZ WITH LITTLE NEWS FOR THE MARKET TO FOCUS ON US TREASURY NOTES AND BONDS SEESAWED IN TIGHT RANGES YESTERDAY AND THE YIELDS OF MANY SECURITIES ENDED UNCHANGED THE YIELDS OF THE 30YEAR BOND AND THE 10YEAR NOTE FOR EXAMPLE WERE NO DIFFERENT FROM FRIDAY THE DEARTH OF MARKETMOVING NEWS PROVIDED LITTLE REASON FOR TRADERS AND INVESTORS TO COME IN FROM THE SIDELINES MANY ALSO LIKELY WERE AWAITING FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S SCHEDULED APPEARANCE TODAY BEFORE A HOUSE BANKING SUBCOMMITTEE TO PRESENT HIS ASSESSMENT OF THE ECONOMY THE SOCALLED HUMPHREYHAWKINS TESTIMONY THE FULL EMPLOYMENT AND BALANCED GROWTH ACT OF 1978 REQUIRES SUCH SEMIANNUAL REPORTS TO CONGRESS BY FED CHAIRMEN THERE WERE NO ECONOMIC NUMBERS TO SPEAK OF SO WE WERE JUST WAITING FOR HUMPHREYHAWKINS SAID BOB MCCORKLE A TRADER AT SEATTLE NORTHWEST SECURITIES THE ONLY CATALYST FOR TRADING YESTERDAY ORIGINATED IN THE COMMODITY MARKETS OIL PRICES WHICH PLUNGED LATE LAST WEEK REVERSED COURSE AND HEADED HIGHER AS OIL CLIMBED THE WIDELY WATCHED COMMODITY RESEARCH BUREAU INDEX SURGED CLOSING UP 283 POINTS AT 21801 THE STRONG RALLY IN COMMODITY PRICES PROMPTED SCATTERED SELLING OF BONDS FROM SPECULATIVE ACCOUNTS BUT THE DECLINES WERE SHALLOW AND SHORTLIVED WE MANAGED TO RECOVER MOST OF THE GROUND WE HAD LOST SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JULY 12 THE 13WEEK BILLS MATURE OCT 21 1993 AND THE 26WEEK BILLS MATURE JAN 20 1994 FEDERAL AGENCIES TAPPED THE MARKET TO TAKE ADVANTAGE OF THE LOW RATES THAT MOST CORPORATE ISSUERS CONTINUE TO SHUN THERE WERE SIX AGENCY DEALS TOTALING 7082 MILLION OF DEBT WHILE FOUR CORPORATIONS CIT GROUP HOLDINGS INC ALCO HEALTH DISTRIBUTION CORP PRIMERICA CORP'S COMMERCIAL CREDIT CORP UNIT AND SOCIETY CORP'S SOCIETY NATIONAL BANK UNITPRICED 5615 MILLION OF DEBT CIT GROUP IS JOINTLY OWNED BY JAPAN'S DAIICHI KANGYO BANK LTD AND CHEMICAL BANKING CORP ALCO HEALTH DISTRIBUTION IS A UNIT OF ALCO HEALTH SERVICES CORP TRADING IN THE SECONDARY MARKETS WAS LIGHT WITH SPREADS REMAINING UNCHANGED TRADERS SAID THE DEBT OF A NUMBER OF CABLE COMPANIES TRADED DOWN BY 1/4 TO ONE POINT ON NEWS THAT MOODY'S INVESTORS SERVICE INC PLACED FIVE CABLE COMPANIES ON ITS NEGATIVE WATCH LIST ON FRIDAY AMONG THE US AGENCY OFFERINGS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION PRICED 100 MILLION OF 10YEAR MEDIUMTERM NOTES AS 632 SECURITIES AT PAR THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 062 PERCENTAGE POINT ABOVE TREASURYS AND UNDERWRITTEN BY SALOMON BROTHERS INC PREFERRING TO WAIT FOR THE HEAVY NEW ISSUANCE EXPECTED IN THE NEXT SEVERAL SESSIONS RATHER THAN JOSTLE AROUND TOO MUCH MUNICIPAL BOND PLAYERS LEFT PRICES LITTLE CHANGED MOST SECONDARY ISSUES FINISHED FLAT TO DOWN 1/4 POINT MORE THAN 5 BILLION IN OFFERINGS OF 100 MILLION OR MORE WERE PRICED BY MUNICIPALITIES LAST WEEK AND MUNI DEALERS EXPECT TO BRING AT LEAST THAT MUCH TO MARKET THIS WEEK WITH THE ACTION EXPECTED TO GET UNDERWAY TODAY AMONG THE LARGEST OFFERINGS EXPECTED THIS WEEK ARE 750 MILLION OF PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY BONDS AS WELL AS 675 MILLION OF NEW YORK CITY GENERAL OBLIGATION BONDS BUT A SHORTTERM OFFERING MAY PROVOKE THE GREATEST INTEREST THIS WEEK THE STATE OF CALIFORNIA WILL PRICE 2 BILLION OF REVENUE ANTICIPATION NOTES LIKELY TOMORROW THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS IN THE SECONDARY MARKET THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 NUCLEAR PROJECT NO 1 REFUNDING BONDS DUE 2017 ENDED 1/8 POINT LOWER AT 99 3/8 TO YIELD 574 THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9307200092 930720 MARKETING & MEDIA CANADA IMPOSES NEW RULES ON US FOREIGN MAGAZINES BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT IN RESPONSE TO PRESSURE FROM CANADIAN MAGAZINE PUBLISHERS IMPOSED NEW RULES ON US AND OTHER FOREIGN MAGAZINES TO PREVENT THEM FROM PUBLISHING CANADIAN EDITIONS THE NEW REGULATIONS ARE EXPECTED TO AFFECT MAINLY TIME WARNER INC GOVERNMENT OFFICIALS SAID THE MEASURES WERE DEMANDED BY CANADIAN MAGAZINE PUBLISHERS AFTER TIME WARNER IN APRIL LAUNCHED A CANADIAN EDITION OF SPORTS ILLUSTRATED MAGAZINE TO COMPETE FOR CANADIAN AD DOLLARS THE PUBLISHERS SAID FURTHER SUCH ISSUES BY US MAGAZINES WOULD WIPE OUT THE FINANCIALLY SHAKY CANADIAN MAGAZINE INDUSTRY THEY WELCOMED THE NEW RULES WHICH ARE AIMED AT PREVENTING FOREIGN MAGAZINES FROM TAPPING THE CANADIAN ADVERTISING MARKET UNDER THE NEW REGULATIONS COMPANIES SUCH AS TIME WARNER THAT ALREADY ARE ESTABLISHED IN CANADA WOULD HAVE TO GET GOVERNMENT APPROVAL FOR ANY FUTURE CANADIAN EDITIONS OF THEIR MAGAZINES SUCH APPROVAL WOULD BE DIFFICULT TO GET GOVERNMENT OFFICIALS INDICATED EXISTING GOVERNMENT RULES REQUIRE FOREIGN PUBLISHERS THAT AREN'T ESTABLISHED IN CANADA TO APPLY FOR APPROVAL TO START EDITIONS THE NEW RULES WON'T BE APPLIED RETROACTIVELY TO SPORTS ILLUSTRATED WHICH PLANS TO ISSUE SIX CANADIAN EDITIONS THIS YEAR ITS FIRST ISSUE ATTRACTED ABOUT 250000 CANADIAN DOLLARS US195600 OF CANADIAN ADVERTISING A SPOKESWOMAN FOR TIME CANADA LTD THE CANADIAN DIVISION OF TIME WARNER WASN'T AVAILABLE FOR COMMENT COMMUNICATIONS MINISTER MONIQUE LANDRY IN ANNOUNCING THE NEW MEASURES SAID THE REGULATIONS REAFFIRM THE GOVERNMENT'S COMMITMENT TO PROTECT THE ECONOMIC FOUNDATIONS OF THE CANADIAN PERIODICAL INDUSTRY WHICH IS A VITAL ELEMENT OF CANADIAN CULTURAL EXPRESSION SHE SAID THE GOVERNMENT WILL CONTINUE TO USE POLICY INSTRUMENTS THAT ENCOURAGE THE FLOW OF ADVERTISING REVENUES TO CANADIAN MAGAZINES JEFFREY SHEARER PUBLISHER OF CANADA'S SATURDAY NIGHT MAGAZINE SAID THE NEW RULES WILL STOP OTHER FOREIGN PUBLISHERS FROM SETTING UP SHOP IN CANADA THE CANADIAN GOVERNMENT SAID IT MAY INTRODUCE ADDITIONAL MEASURES IN THE COMING MONTHS TO PROTECT CANADA'S MAGAZINE INDUSTRY THE DECISION WAS ONE OF THE FIRST INITIATIVES BY THE NEW GOVERNMENT OF PRIME MINISTER KIM CAMPBELL WHO TOOK OFFICE JUNE 25 SUCCEEDING BRIAN MULRONEY THE MOVE INDICATED THAT MS CAMPBELL'S GOVERNMENT INTENDS TO TAKE A PROTECTIONIST STANCE TOWARD THE CANADIAN PUBLISHING INDUSTRY POLITICAL ANALYSTS HAVE BEEN URGING THE CAMPBELL GOVERNMENT TO TAKE DECISIVE ACTIONS IN THE NEXT FEW MONTHS IN ORDER TO MAKE AN IMPRESSION ON CANADIANS BEFORE AN ELECTION THAT IS TO BE HELD BY NOVEMBER IN PUBLIC OPINION POLLS MS CAMPBELL'S PROGRESSIVE CONSERVATIVE PARTY CURRENTLY TRAILS THE OPPOSITION LIBERAL PARTY WHICH HAS CALLED MS CAMPBELL A CLONE OF THE UNPOPULAR MR MULRONEY LARRY M GREENBERG IN TORONTO CONTRIBUTED TO THIS ARTICLE 9307200091 930720 WHO'S NEWS HEAD OF BLUE CROSS GROUP QUITS TO ALLOW INVESTMENT WASHINGTON BENJAMIN GIULIANI HEAD OF THE BLUE CROSS & BLUE SHIELD ORGANIZATION IN WASHINGTON HAS AGREED TO QUIT TO PAVE THE WAY FOR AN INVESTMENT IN THE STRUGGLING HEALTH INSURER MORE THAN 20 OTHER BLUE CROSS ORGANIZATIONS FROM ACROSS THE COUNTRY ARE NEGOTIATING TO HELP SHORE UP THE FINANCIALLY STRAPPED INSURER THROUGH THE PURCHASE OF A 60 MILLION NOTE BLUE CROSS & BLUE SHIELD OF THE NATIONAL CAPITAL AREA HAS BEEN PLAGUED BY HEAVY LOSSES AND IS ONE OF SEVERAL BLUE CROSS PLANS THAT WAS INVESTIGATED BY A SENATE COMMITTEE HEADED BY SEN SAM NUNN D GA IN THE CASE OF THE WASHINGTON PLAN THE COMMITTEE TURNED UP EVIDENCE OF POOR MANAGEMENT A DISASTROUS DIVERSIFICATION EFFORT AND LAVISH EXPENSES MOST OF THE BLAME WAS PLACED ON JOSEPH GAMBLE THE FORMER CHIEF EXECUTIVE OFFICER OF THE GROUP MR GIULIANI WHO HAD BEEN WITH THE ORGANIZATION FOR 32 YEARS WAS NAMED TO SUCCEED MR GAMBLE LAST JULY THE GROUP SELLS HEALTH INSURANCE TO 12 MILLION PEOPLE IN THE WASHINGTON AREA 9307200090 930720 AHMANSON PLANS SALE OF LOANS TO BEAR STEARNS MOVE TO SHED 12 BILLION OF ITS NONPERFORMERS WILL LEAD TO BIG LOSS BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL HF AHMANSON & CO TRYING TO PUT THE DEEP REALESTATE SLUMP BEHIND IT SAID IT AGREED TO SELL 12 BILLION OF NONPERFORMING SINGLEFAMILY HOME LOANS TO A UNIT OF BEAR STEARNS COS FOR AN UNDISCLOSED AMOUNT WHICH WILL LEAD TO A LOSS OF ABOUT 290 MILLION FOR THE SECOND QUARTER THE HUGE SALE WHICH FOLLOWS THE BULK SALES OF PROBLEM COMMERCIAL REAL ESTATE BY BANKS IS BELIEVED TO BE THE BIGGEST ONETIME DISPOSITION OF NONPERFORMING HOME LOANS EVER AND REPRESENTS AN ACCELERATION OF AHMANSON'S STRATEGY OF SHEDDING NONPERFORMING LOANS AND ASSETS AS QUICKLY AS POSSIBLE THAT'S IN CONTRAST TO OTHER BIG THRIFTS SUCH AS GREAT WESTERN FINANCIAL CORP WHICH ARE TRYING TO MINIMIZE LOSSES BY SELLING REPOSSESSED HOMES LARGELY IN INDIVIDUAL TRANSACTIONS AHMANSON THE PARENT OF THE NATION'S LARGEST THRIFT HOME SAVINGS OF AMERICA SAID IT'S ALSO ESTABLISHING ADDITIONAL LOSS RESERVES OF 163 MILLION FOR DISPOSAL OF ITS OWN REALESTATE DEVELOPMENT ASSETS SUCH AS LAND SINGLEFAMILY HOME PROJECTS AND COMMERCIAL BUILDINGS RICHARD H DEIHL AHMANSON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT THE DISCOUNT ON THE LOANS SOLD TO BEAR STEARNS WON'T BE ANY GREATER THAN THE 24 TO 29 LOSSES THE THRIFT HAS BEEN EXPERIENCING RECENTLY IN FORECLOSING ON DELINQUENT LOANS AND SELLING THE PROPERTIES IT'S IN THAT RANGE OR WE WOULDN'T HAVE DONE IT MR DEIHL SAID HE DECLINED TO BE MORE SPECIFIC THE SOLD LOANS WERE MAINLY CULLED FROM HOME SAVINGS' PORTFOLIOS IN CALIFORNIA TEXAS FLORIDA NEW YORK AND ILLINOIS WITH THE HIGHEST PERCENTAGE COMING FROM SOUTHERN CALIFORNIA THE DISCOUNT ON THE LOANS INDICATES THAT HOME VALUES HAVE SUNK 20 TO 50 INCLUDING THE LOST EQUITY OF HOMEOWNERS AND ON AVERAGE HAVE FALLEN BY MORE THAN A THIRD IN THOSE MARKETS AFTER THE ANNOUNCEMENT YESTERDAY AHMANSON ROSE 50 CENTS TO 19875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ANALYSTS GENERALLY PRAISED THE MOVE BECAUSE IT DIDN'T INVOLVE GREATER COSTS SUCH AS PAINSTAKINGLY FORECLOSING AND SELLING EACH HOME AND SHARPLY REDUCES THE NONPERFORMING ASSETS LEFT ON AHMANSON'S BOOKS TO 204 OF TOTAL ASSETS THAT GIVES AHMANSON BASED IN IRWINDALE CALIF THE LOWEST NONPERFORMER RATIO AMONG THE LARGE LOS ANGELESAREA THRIFTS GREAT WESTERN FINANCIAL HAS A RATIO OF 503 CALFED INC 781 AND GLENFED INC 481 A SLAM DUNK SAID JOSEPH A JOLSON AN ANALYST AT MONTGOMERY SECURITIES IN SAN FRANCISCO HE CALLED THE SALE A SMART MOVE THAT CUTS THE LONGTERM COST TO THE COMPANY OF RIDDING ITSELF OF BAD LOANS BECAUSE IT'S A BET THAT PRICES HAVE BOTTOMED OUT MR JOLSON SAID THE SALE ALSO PORTENDS GOOD NEWS FOR THE CALAMITOUS SOUTHERN CALIFORNIA REALESTATE MARKET THERE'S A GUY OUT THERE WHO WAS WILLING TO BUY 12 BILLION IN NONPERFORMING LOANS HE SAID THAT'S VERY BULLISH MR DEIHL SAID THE SALE WILL FREE UP AHMANSON'S BALANCE SHEET AND LOAN OFFICERS FOR A SOUTHERN CALIFORNIA HOUSING RECOVERY THAT HE EXPECTS IN ABOUT A YEAR BASED ON ECONOMIC REPORTS HE HAS STUDIED WE'VE BEEN IN A REALESTATE RECESSION LONGER THAN ANY OTHER I CAN REMEMBER AND I THINK WE'RE BEING FAIRLY PESSIMISTIC BY SAYING IT WILL BE ANOTHER YEAR BEFORE THE TURNAROUND HE SAID THE ADDITION OF 163 MILLION IN RESERVES BRINGS TOTAL RESERVES AGAINST 900 MILLION OF REALESTATE DEVELOPMENT ASSETS TO 317 MILLION MR DEIHL SAID THE DEVELOPMENT PROJECTS ARE ROUGHLY HALF RESIDENTIAL AND HALF COMMERCIAL MOSTLY IN CALIFORNIA A LOT OF PROJECTS WE THOUGHT WERE STILL VIABLE TURNED OUT NOT TO VIABLE HE SAID AHMANSON ALSO SAID IT PLANS TO SHORE UP ITS BALANCE SHEET BY RAISING ABOUT 200 MILLION IN ADDITIONAL CAPITAL THE COMPANY SAID IT EXPECTS THE BULK SALE OF LOANS TO BOOST ITS PROFITABILITY IN THE THIRD AND FOURTH QUARTERS BUT THAT THE BIG SECONDQUARTER LOSS WILL LEAVE IT IN THE RED FOR THE YEAR ANALYSTS PREVIOUSLY HAD A MEAN EARNINGS PROJECTION OF 30 CENTS A SHARE FOR THE SECOND QUARTER AND 134 A SHARE FOR THE YEAR IN THE YEAREARLIER QUARTER AHMANSON HAD NET INCOME OF 671 MILLION OR 54 CENTS A SHARE IN 1992 IT EARNED 1564 MILLION OR 160 A SHARE 9307200089 930720 WHO'S NEWS NATIONAL MEDICAL ENTERPRISES FOUNDERS RESIGN FROM THEIR REMAINING POSTS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID ITS COFOUNDERS AND LONGTIME TOP EXECUTIVES RICHARD K EAMER AND LEONARD COHEN RESIGNED AS OFFICERS AND DIRECTORS OF THE TROUBLED HEALTHCARE SERVICES CONCERN THE DEPARTURES COME LESS THAN THREE MONTHS AFTER THE EXECUTIVES ABRUPTLY ANNOUNCED THAT THEY WERE GIVING UP THEIR MAJOR OPERATING POSTS AT THE COMPANY ONE OF THE NATION'S LARGEST HOSPITAL COMPANIES MESSRS EAMER AND COHEN SAID THEN THAT THEIR DAILY DUTIES HADN'T BEEN DEFINED NATIONAL MEDICAL DIDN'T GIVE ANY REASON FOR THE EXECUTIVES' LATEST MOVES AND THE MEN WEREN'T AVAILABLE TO COMMENT ANALYSTS SAID THE DEPARTURES APPEARED DESIGNED TO PUT SOME DISTANCE BETWEEN FORMER MANAGEMENT AND THE NEWLY INSTALLED CHIEF EXECUTIVE OFFICER AND PRESIDENT FORMER INVESTMENT BANKER JEFFREY C BARBAKOW MR EAMER 65 YEARS OLD REMAINED CHAIRMAN UNTIL HIS RESIGNATION EFFECTIVE TODAY MR COHEN 68 IS RELINQUISHING THE VICE CHAIRMAN POST HE HELD ONLY BRIEFLY IN APRIL HE TURNED OVER THE REINS AS CHIEF OPERATING OFFICER TO MICHAEL H FOCHT SR NATIONAL MEDICAL SAID ITS BOARD DIDN'T IMMEDIATELY NAME ANYONE TO FILL EITHER THE CHAIRMAN OR VICE CHAIRMAN POST I ASSUME THAT WILL BE DECIDED AT A BOARD MEETING SET FOR NEXT WEDNESDAY SAID DAVID OLSON VICE PRESIDENT OF CORPORATE COMMUNICATIONS FOR THE MOMENT THE RESIGNATIONS REDUCE THE SIZE OF NATIONAL MEDICAL'S BOARD TO 14 MEMBERS THE TWO EXECUTIVES' DEPARTURE MIGHT HAVE BEEN DELAYED WHILE THEY NEGOTIATED CONSULTANT CONTRACTS ANALYSTS SPECULATED MR EAMER LEAVES WITH A FIVEYEAR CONSULTANT CONTRACT MR COHEN WITH A THREEYEAR CONTRACT DETAILS WEREN'T DISCLOSED NEITHER MAN WILL MAINTAIN AN OFFICE AT THE COMPANY MR OLSON SAID NATIONAL MEDICAL IS MAKING A VERY CONCERTED EFFORT TO GET BOTH ITS OPERATING AND PERCEPTION PROBLEMS BEHIND IT SAID TODD B RICHTER AN ANALYST AT DEAN WITTER REYNOLDS EAMER IS VIEWED AS A GUY WHO PUSHED THE COMPANY INTO ITS PROBLEMS AS LONG AS HE WAS ACTIVE ON THE BOARD PEOPLE WOULD WONDER WHETHER THE NEW CEO IS REALLY INDEPENDENT OR WHETHER HE IS AN EAMER PUPPET NATIONAL MEDICAL HAS HAD LEGAL AND BUSINESS PROBLEMS MAINLY SURROUNDING ITS ONCE FASTGROWING PSYCHIATRICCARE DIVISION WHICH HAS BEEN ACCUSED OF ENGAGING IN IMPROPER PRACTICES AND BILLING PROCEDURES THE COMPANY IS UNDER INVESTIGATION BY FEDERAL AND STATE AGENCIES AND HAS BEEN SUED BY A NUMBER OF INSURANCE COMPANIES OVER 1 BILLION IN CLAIMS THEY SAY ARE FRAUDULENT SINCE HE TOOK OVER AS CHIEF EXECUTIVE JUNE 1 MR BARBAKOW HAS MET WITH WALL STREET PROFESSIONALS COMMERCIAL BANKERS HOSPITAL STAFF COMPANY LAWYERS AND EMPLOYEES TAKING HIS MEASURE OF THE COMPANY AND SPREADING WORD OF HIS DETERMINATION TO BOOST SHAREHOLDER VALUE WHEN HE ISN'T TRAVELING HE WORKS FOUR DAYS A WEEK AT CORPORATE HEADQUARTERS IN SANTA MONICA ON OTHER DAYS HE WORKS FROM AN OFFICE ABOUT 80 MILES NORTH IN SANTA BARBARA CALIF NEAR HIS HOME NATIONAL MEDICAL SHARES CLOSED YESTERDAY AT 11125 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE RESIGNATIONS WERE ANNOUNCED AFTER THE CLOSE OF MARKETS 9307200088 930720 MARKETING & MEDIA ADVERTISING AUDI THREE AGENCIES HAVE A LOT RIDING ON OUTCOME OF AD PITCHES BY KEVIN GOLDMAN THREE AD AGENCIES AND AUDI OF AMERICA HAVE A LOT AT STAKE IN THE NEXT 48 HOURS THIS MORNING EXECUTIVES FROM BOSTONBASED AD AGENCY HILL HOLLIDAY CONNORS COSMOPULOS ARE SCHEDULED TO MAKE A FOURHOUR PRESENTATION TO AUDI OFFICIALS AT THE AUTO MANUFACTURER'S HEADQUARTERS IN AUBURN HILLS MICH IN THE HOPES OF SNARING THE COVETED 30 MILLION ACCOUNT THE EXERCISE WILL BE REPEATED LATER TODAY BY CARMICHAEL LYNCH A MINNEAPOLISBASED AGENCY AND TOMORROW BY MCKINNEY & SILVER OF RALEIGH NC EACH AGENCY DESPERATELY WANTS THE BUSINESS HILL HOLIDAY WANTS VINDICATION FROM BEING FIRED BY NISSAN'S INFINITI IN NOVEMBER NEITHER CARMICHAEL LYNCH NOR MCKINNEY & SILVER ARE USED TO HANDLING A MAJOR NATIONAL ACCOUNT ON THE SCALE OF AUDI AUTOMOTIVE ACCOUNTS HELP ESTABLISH LEGITIMACY FOR AN AD AGENCY TO PLAY IN THE BIG LEAGUES SIMPLY BECAUSE THE BUSINESS IS SO DEMANDING AND AUDI WHICH FIRED OMNICOM GROUP'S DDB NEEDHAM IN MARCH AFTER ALMOST A QUARTERCENTURY NEEDS TO JUMPSTART ITS IMAGE AND MARKETING MESSAGE TO CONSUMERS SOME OF WHOM ARE TURNING AWAY FROM THE VOLKSWAGEN AG UNIT'S VEHICLES IN FAVOR OF CHEAPER JAPANESEMADE AUTOMOBILES AND OTHERS WHO ARE INSTEAD PURCHASING COMPARABLE LUXURY CARS SUCH AS BMW AND LEXUS MODELS TO FULFILL THIS FORMIDABLE TASK AUDI IS STEERING IN THE DIRECTION OF AGENCIES FAR SMALLER THAN ITS FORMER AD GURUS BOTH HILL HOLLIDAY WHICH SUCCESSFULLY LAUNCHED THE INFINITI CARS AND CARMICHAEL LYNCH WITH SUCH CLIENTS AS HARLEYDAVIDSON AND ROLLERBLADE HAVE SECURE REPUTATIONS AS HOTBEDS OF CREATIVITY MCKINNEY IS A RELATIVELY UNKNOWN AGENCY BROUGHT IN AFTER AMMIRATI & PURIS AN ORIGINAL FINALIST DROPPED OUT THERE IS GENERAL KNOWLEDGE OUT THERE THAT AUDI HAS NO IMAGE AND IF IT DOES HAVE ONE IT IS NEGATIVE SAYS ONE EXECUTIVE PITCHING THE BUSINESS ROBERT C DOHERTY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MCKINNEY WHICH HAS LESS THAN 100 EMPLOYEES AND BILLINGS LAST YEAR OF 907 MILLION IS TIGHTLIPPED REGARDING DETAILS OF HIS PRESENTATION BUT HE SAYS AUDI HAS A GREAT STORY TO TELL IF ONLY YOU TALK TO CUSTOMERS AND DEALERS HE SAYS THE MORE THAN 200 MILLION THAT AUDI SPENT ON ADVERTISING IN THE PAST SIX YEARS HASN'T MOVED AUDI'S IMAGE AND SALES BUT AUDI HE SAYS IS GEARING EVERYTHING TOWARD GETTING A COHESIVE MESSAGE TO CONSUMERS BEFORE THE INTRODUCTION OF THE ALLALUMINUM SUCCESSOR TO ITS V8 FLAGSHIP MODEL EARLY NEXT YEAR CLEARLY AUDI NEEDS TO REVERSE ITS TREND OF DECLINING SALES AUDI SOLD 6689 UNITS IN THE US IN THE FIRST SIX MONTHS OF THIS YEAR DOWN 1 FROM THE SAME PERIOD A YEAR AGO ACCORDING TO SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE AN AUTO FORECASTING AND CONSULTING FIRM IN LITTLE FALLS NJ BUT AUDI OF AMERICA'S SALES ARE DOWN AN ALARMING 82 FROM ITS PEAK IN 1985 THE FOLLOWING YEAR AUDI'S SALES PLUMMETED AND HAVE YET TO RECOVER BECAUSE OF UNFOUNDED ALLEGATIONS THAT ITS CARS WERE PLAGUED BY SUDDEN ACCELERATION AUDI'S MOST RECENT AD WHICH IS NO LONGER RUNNING FEATURED THE COLE PORTER SONG NIGHT AND DAY AND DEPICTED A BUSINESSWOMAN TRAVELING FROM MEETING TO MEETING UNTIL IT WAS TIME TO CHANGE OUTFITS FOR A CLASSICAL MUSIC CONCERT WELCOME TO THE 90S THE VOICEOVER SAID TO DRIVE IT IS TO TAKE CONTROL AUDI DECLINES TO COMMENT ON WHAT IT EXPECTS FROM THE THREE AGENCIES COMPETING FOR THE BUSINESS ONE ADVERTISING EXECUTIVE WHO HAD DISCUSSIONS WITH AUDI EXECUTIVES SAYS THE AUTO MANUFACTURER IS LOOKING FOR A STRATEGIC THINKER ONE THAT COULD ANSWER THE QUESTION WHAT IS THE REASON TO OWN AN AUDI NOW AUDI NEEDS TO POSITION ITSELF AGAINST THE COMPETITION AS THE SMARTEST CAR TO BUY IN THE CATEGORY THAT BEGINS AT ABOUT 32000 SAYS THE EXECUTIVE WHO DIDN'T WANT TO BE IDENTIFIED THE SELECTION OF CARS COMPARABLE TO AUDI IS LARGER THAN IT WAS IN THE AUTO'S HEYDAY INCLUDING THE INFINITI AND LEXUS MODELS AND A BROADER ARRRAY OF BMWS ONE THING APPEARS TO BE CERTAIN HUMOR WON'T BE PART OF ANY NEW AUDI EFFORT SAY EXECUTIVES AT TWO OF THREE AGENCIES PARTICIPATING IN THE REVIEW HILL HOLLIDAY DECLINED TO COMMENT EXECUTIVES AT MCKINNEY WHICH HAS ROYAL CARIBBEAN CRUISES LTD AS A MAJOR CLIENT AND CARMICHAEL LYNCH WITH ABOUT 170 EMPLOYEES AND 110 MILLION IN BILLINGS LAST YEAR SAY A FUNNY AD CAMPAIGN ISN'T THE WAY TO GO FOR A COMPANY TRYING TO ESTABLISH A REVISED IDENTITY YOU DON'T GET A NEW MESSAGE OUT ON AN INVESTMENT LIKE A CAR WITH HUMOR SAYS MR DOHERTY ANALYSTS DON'T ENVY AUDI'S NEW AGENCY WHICHEVER ONE IT TURNS OUT TO BE AUDI HAS TO REDEFINE WHAT IT IS IN THE LUXURY MARKET SAYS MS JACOBS OF JACOBS AUTOMOTIVE WHAT DOES IT STAND FOR ALL EYES ARE ON THE NEW ALLALUMINUM V8 AND AUDI HAS THIS OPPORTUNITY ONCE TO GRAB THE AUTO BUYER'S ATTENTION SHONEY'S SHONEY'S INC A NASHVILLE TENN RESTAURANT OPERATOR SAID FIVE AGENCIES ARE CONTENDING FOR ITS ESTIMATED 15 MILLION ACCOUNT WPP GROUP'S MARTIN AGENCY OF RICHMOND VA HAL RINEY & PARTNERS OF SAN FRANCISCO THE NEW YORK OFFICE OF CHIAT/DAY MARTINWILLIAMS OF MINNEAPOLIS AND THE INCUMBENT THE ATLANTA OFFICE OF WPP'S OGILVY & MATHER 9307200087 930720 MARKETING & MEDIA WHEREHOUSE SUES 4 FIRMS OVER USEDCD DISPUTE LOS ANGELES WHEREHOUSE ENTERTAINMENT INC FILED A LAWSUIT AGAINST FOUR BIG RECORD COMPANIES FOR THEIR EFFORTS TO EXTINGUISH THE MUSIC RETAILER'S USED COMPACTDISK BUSINESS THE SUIT FILED IN FEDERAL COURT HERE ALLEGES THE COMPANIES BROKE ANTITRUST AND FAIRTRADE LAWS WHEN THEY BEGAN WITHOLDING COOPERATIVEADVERTISING FUNDS FROM THE RETAILER BECAUSE IT STARTED SELLING USED CDS AT ABOUT HALF THE PRICE OF NEW ONES IN MORE THAN 270 OF ITS 339 STORES THIS YEAR RESPONDENTS NAMED IN THE SUIT INCLUDE THE DISTRIBUTION UNITS OF THE MUSIC ARMS OF SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA TIME WARNER INC AND THORN EMI PLC SPOKESMEN FOR ALL THE COMPANIES DECLINED COMMENT BUT THE COMPANIES ARE KNOWN TO FEEL THAT THE USEDCD MARKET ROBS THEM OF REVENUE CHEATS ARTISTS OUT OF ROYALTIES AND FACILITATES ILLEGAL TAPING BY CONSUMERS AT STAKE FOR WHEREHOUSE A LARGE CLOSELY HELD RETAILER BASED IN LOS ANGELES IS MORE THAN 5 MILLION IN REVENUE IT GETS FROM THE RECORD COMPANIES TO HELP COVER THE COST OF ADVERTISING NEW CDS THE COOPERATIVEADVERTISING FUNDS ARE STILL BEING PROVIDED TO WHEREHOUSE RIVALS THAT HAVEN'T ELECTED TO OFFER USED DISKS 9307200086 930720 FOREIGN EXCHANGE DOLLAR FALLS VS MARK AS TENSIONS EASE IN EUROPE'S EXCHANGE RATE MECHANISM BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SOFTENED AGAINST THE DEUTSCHE MARK AND OTHER EUROPEAN CURRENCIES MONDAY AS TENSIONS SUBSIDED AT LEAST TEMPORARILY IN EUROPE'S EXCHANGE RATE MECHANISM OR ERM FOLLOWING FORCEFUL CENTRAL BANK INTERVENTION LATE LAST WEEK MEANWHILE THE DOLLAR ADVANCED MODESTLY AGAINST THE YEN AFTER JAPANESE PARLIAMENTARY ELECTIONS SUNDAY AS EXPECTED LEFT THE LIBERAL DEMOCRATIC PARTY WITHOUT AN OUTRIGHT MAJORITY FOR THE FIRST TIME IN 38 YEARS AND LEFT THE MARKET UNCERTAIN ABOUT THE SHAPE OF THE NATION'S NEXT GOVERNMENT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17070 MARKS DOWN FROM 17160 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10848 YEN UP FROM 10755 YEN STERLING WAS TRADING AT 15000 UP FROM 14860 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10834 YEN AND AT 17048 MARKS THE EASING OF ERM TENSIONS FOLLOWED SUSTAINED INTERVENTION BY EUROPEAN CENTRAL BANKS LAST WEEK TO SUPPORT THE FRENCH FRANC AND DANISH KRONE WHICH HAD MOVED DOWN TOWARD THEIR LOWEST PERMISSIBLE LIMITS WITHIN THE ERM CURRENCY GRID DEALERS SAID THE INTERVENTION APPEARS TO HAVE BEEN EFFECTIVE FOR NOW ALSO PLAYERS MONDAY WERE UNWINDING POSITIONS TAKEN AGAINST THE FRANC AND KRONE IN EXPECTATION THEY WOULD CONTINUE TO BE DRIVEN LOWER OR PERHAPS EVEN BE DEVALUED MARKET PARTICIPANTS SAID THIS IS A TYPICAL FRIDAYMONDAY SCENARIO SAID JAY TUCKER DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP PLAYERS BOUGHT MARKS FRIDAY ON CONCERNS ABOUT A POSSIBLE ERM REALIGNMENT OVER THE WEEKEND AND THEN SOLD THEM FOR WEAKER ERM CURRENCIES WHEN A REALIGNMENT DIDN'T HAPPEN HE SAID THE ERM LIMITS FLUCTUATIONS OF VALUE BETWEEN MEMBER CURRENCIES THE DOLLAR WHICH HAD GAINED FROM PERCEPTIONS IT'S A HAVEN FROM EUROPEAN CURRENCY TUMULT ALSO SUFFERED MONDAY TRADERS SAID ALSO INCREASES IN TWO KEY DANISH INTEREST RATES LAST WEEK HAVE HELPED EASE PRESSURES ON THE KRONE MR TUCKER NOTED THE CENTRAL BANKS HAVE BEEN ABLE TO STAVE OFF FURTHER SPECULATION SAID LOUIS RAPPAPORT FOREIGN EXCHANGE MANAGER AT SOCIETE GENERALE AN UNEXPECTED CUT IN A MUCHWATCHED GERMAN INTEREST RATE MONDAY ALSO STOLE SOME APPEAL FROM THE MARK DEALERS SAID THE DEUTSCHE BUNDESBANK SAID IT DRAINED LIQUIDITY FROM THE MONEY MARKET THROUGH TWODAY CURRENCY REPURCHASE AGREEMENTS OR REPOS THE RATE FOR THE REPOS WAS 715 DOWN FROM LAST WEEK'S MINIMUM RATE OF 728 ON TWOWEEK REPOS IT WAS A SMALL STEP BUT THE MARKET TOOK IT AS SIGNIFICANT IT RAISED THE PROSPECT FOR OTHER LOWER INTEREST RATES IN GERMANY MR RAPPAPORT SAID AGAINST THE YEN THE DOLLAR GAINED SOMEWHAT AS JAPANESE PARLIAMENTARY ELECTIONS FAILED TO PRODUCE CONCLUSIVE INDICATIONS ABOUT THE MAKEUP OF THE NATION'S NEXT GOVERNMENT PARTICIPANTS SAID NOBODY CAN TELL YOU WHAT WILL HAPPEN NEXT MR TUCKER SAID A NEW GOVERNMENT MIGHT BE MORE OR LESS CONSERVATIVE MORE OR LESS FAVORABLE TO THE US AND THIS GIVES SOME WORRY TO PEOPLE WHO HAVE BOUGHT THE YEN MOREOVER THE RELATIVE STRENGTH OF THE PERFORMANCE OF THE LDP WHICH ENDED WITH 223 SEATS SHORT OF THE 256 SEATS NEEDED FOR A MAJORITY RAISES THE POSSIBILITY THAT IT WILL BE A MEMBER OF WHATEVER COALITION GOVERNMENT IS FORMED WHICH WOULD BE PERCEIVED AS POSITIVE FOR TRADE TALKS BETWEEN THE US AND JAPAN HE SAID 9307200085 930720 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 COMMERCIAL CREDIT CORP 200 MILLION ISSUE OF 575 SENIOR NOTES DUE JULY 15 2000 WAS PRICED AT 99516 TO YIELD 5836 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 53 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC COMMERCIAL CREDIT IS A UNIT OF PRIMERICA CORP SOCIETY NATIONAL BANK 135 MILLION ISSUE OF 35 SENIOR BANK NOTES DUE JULY 26 1994 WERE PRICED AT 99951 TO YIELD 355 ACCORDING TO MCM CORPORATEWATCH THE BANK NOTES WILL BE REOFFERED AT VARYING PRICES THE NONCALLABLE BANK NOTES WERE PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE TREASURY BILLS MATURING JULY 28 1994 RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO SELLING CONCESSION IS 35 CENTS AND REALLOWANCE IS 25 CENTS SOCIETY NATIONAL BANK IS A UNIT OF SOCIETY CORP ALCO HEALTH DISTRIBUTION CORP 1265 MILLION ISSUE OF 1125 SENIOR DEBENTURES DUE JULY 15 2005 WERE PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES WHICH ARE NONCALLABLE FOR FIVE YEARS PAYINKIND FOR FIVE YEARS AND HAVE AN EQUITY CALL AFTER THREE YEARS RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE FEDERAL HOME LOAN BANK SYSTEM 165 MILLION ISSUE OF 398 DEBENTURES DUE JULY 27 1995 WERE PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THEY WERE PRICED AT A SPREAD OF ONE BASIS POINT ABOVE TREASURYS THE NONCALLABLE DEBENTURES WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN BANK SYSTEM 108 MILLION ISSUE OF 434 NOTES DUE JULY 29 1996 WERE PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SIX BASIS POINTS ABOVE TREASURYS THE ISSUE NOT RATED BY MOODY'S OR S&P WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC FEDERAL HOME LOAN BANK SYSTEM 100 MILLION ISSUE OF 455 INCREMENTAL STEPUP NOTES DUE JULY 27 2000 WERE PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE INTEREST RATE STEPS UP TO 5 IN YEARS TWO AND THREE 62 IN YEARS FOUR AND FIVE AND 66 IN YEARS SIX AND SEVEN THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 34 BASIS POINTS ABOVE TREASURYS THE NOTES ARE NOT RATED BY MOODY'S OR S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS FEDERAL HOME LOAN BANK SYSTEM 852 MILLION ISSUE OF 501 DEBENTURES DUE JULY 29 1998 WERE PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THEY WERE PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE NONCALLABLE DEBENTURES WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CIT GROUP HOLDINGS INC 100 MILLION ISSUE OF FLOATINGRATE MEDIUMTERM NOTES DUE JULY 26 1994 WERE PRICED AT PRIME MINUS 270 BASIS POINTS AT PAR ACCORDING TO MCM CORPORATEWATCH PRIME RATE IS 6 THE NOTES FLOAT DAILY AND PAY QUARTERLY RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP LA PETITE HOLDINGS CORP PRICED LATE FRIDAY 85 MILLION OF SENIOR SECURED NOTES DUE AUG 1 2001 AND 800000 SHARES OF 20 MILLION CUMULATIVE REDEEMABLE EXCHANGEABLE PREFERRED STOCK THE 9625 SENIOR SECURED NOTES WERE PRICED AT PAR AND ARE NONCALLABLE FOR FOUR YEARS THE NOTES ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE CLASS A PREFERRED HAS A 12125 DIVIDEND YIELD AND IS MANDATORILY REDEEMABLE IN 10 YEARS THE PREFERRED WHICH IS NONCALLABLE FOR FIVE YEARS IS PAYINKIND FOR FIVE YEARS AND HAS A FIVEYEAR IPO CALL EXCHANGEABLE INTO SUBORDINATED DEBT THE PREFERRED IS RATED CAA BY MOODY'S AND SINGLEBMINUS BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION ISSUE OF 632 MEDIUMTERM NOTES DUE JULY 28 2003 WERE PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 62 BASIS POINTS ABOVE TREASURYS NOT RATED BY MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC WORLD BANK SUPRANATIONAL 300 BILLION LIRE OF 975 EUROBONDS DUE AUG 11 2003 AT ISSUE PRICE 10175 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO FEES 1875 CREDITANSTALTBANKVEREIN AUSTRIA 100 MILLION COLLARED FLOATINGRATE EURONOTES DUE AUGUST 2005 AT ISSUE AND REOFFER PRICE 99625 VIA CREDITANSTALDTBANKVEREIN PRICED AT 25 BASIS POINTS BELOW SIXMONTH LONDON INTERBANK OFFERED RATE IN US DOLLARS WITH MINIMUM 5 AND MAXIMUM 8 FEES 05 INTEREST PAYABLE SEMIANNUALLY BMW AUSTRALIA FINANCE LTD GERMAN PARENT 100 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE AUG 27 1998 AT PRICE 101875 VIA DRESDNER BANK FEES 2 HILTI AG LIECHTENSTEIN 100 MILLION SWISS FRANCS OF PUBLIC BONDS DUE AUG 10 2001 WITH EQUITYPURCHASE WARRANTS CARRYING 225 COUPON AT PAR VIA CREDIT SUISSE WARRANTS EXERCISABLE FROM AUG 11 1993 TO AUG 30 1996 INTO BEARER SHARES OF HILTI AG FEES STANDARD 9307200084 930720 BEST MANUFACTURERS FOUND TO TRIUMPH BY FOSTERING COOPERATION OF EMPLOYEES BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL US MANUFACTURERS WON'T WIN THE GLOBAL COMPETITION BY SIMPLY EMBRACING THE HOTTEST MANAGEMENT FADS INSTEAD A SURVEY CONCLUDES THE WORLD'S MOST SUCCESSFUL MANUFACTURERS TRIUMPH BY CURBING INTERNAL POLITICS AND TAKING SIMILAR STEPS TO FOSTER COOPERATION AMONG EMPLOYEES USING SUCH APPROACHES THE TYPICAL JAPANESE CONCERN DEVELOPS INNOVATIVE PRODUCTS FASTER THAN US AND EUROPEAN RIVALS ACCORDING TO THE SURVEY OF 553 GLOBAL MANUFACTURERS BY TWO MASSACHUSETTS CONSULTING FIRMS BOSTON CONSULTING GROUP AND PRODUCT DEVELOPMENT CONSULTING INC IT TAKES AN AVERAGE OF 177 MONTHS FOR A JAPANESE MANUFACTURER TO INTRODUCE A PRODUCT COMPARED WITH 197 MONTHS IN THE US AND 206 MONTHS IN EUROPE THE STUDY FOUND COMPANIES GROW FASTER AND GRAB A BIGGER MARKET SHARE WHEN THEY BRING THE RIGHT INNOVATIVE PRODUCTS TO MARKET AHEAD OF THE PACK THE SURVEY SAID TO BECOME MORE COMPETITIVE US EXECUTIVES MUST ADDRESS THE POLITICS OF THEIR ORGANIZATION BEFORE THEY INSTALL MECHANISMS TO DEVELOP PRODUCTS FASTER SUGGESTS THOMAS HOUT A BOSTON CONSULTING VICE PRESIDENT AND THE STUDY'S COAUTHOR POLITICS IF NOT ADDRESSED WILL DEFEAT ANY MECHANISM KNOWN TO MAN HE ADDS THE COMPANIES SURVEYED MAKE WIDE USE OF POPULAR MANAGEMENT TOOLS SUCH AS PRODUCTDEVELOPMENT TEAMS TOTAL QUALITY MANAGEMENT AND COMPUTERAIDED DESIGN BUT NO ONE OF THESE STANDS OUT AS EXPLAINING FAST AND INNOVATIVE PRODUCT DEVELOPMENT THE SURVEY NOTED JAPANESE MANUFACTURERS FOR INSTANCE USE PROJECT TEAMS LESS FREQUENTLY THAN THEIR US OR EUROPEAN COUNTERPARTS THE DIFFERENCE DOESN'T LIE IN TRAINING OR TOOLS THE STUDY CONTINUED IT'S IN HOW PEOPLE WORK TOGETHER HOW DECISIONS GET MADE AND HOW LEADERSHIP IS PRACTICED ACCORDING TO THE SURVEY THE MOST SUCCESSFUL GLOBAL MANUFACTURERS SPEED NEWPRODUCT DEVELOPMENT THROUGH COOPERATIVE PRACTICES SUCH AS SIMULTANEOUS ENGINEERING IN WHICH ENGINEERS MARKETERS PURCHASING MANAGERS AND OTHER UNRELATED DEPARTMENTS GET THE TIME MONEY AND AUTHORITY NEEDED TO WORK ON A NEW PRODUCT AT THE SAME TIME THE CONCEPT USED BY THE US AUTO INDUSTRY HAS BEEN OUT THERE FOR YEARS MR HOUT OBSERVES BUT PEOPLE OFTEN STUMBLE ON OBSTACLES NOT REMOVED FROM THEIR PATH BY SENIOR MANAGEMENT AMONG OTHER THINGS HE SAYS CORPORATE LEADERS COULD HELP BY DEVELOPING EFFECTIVE AND WELLQUALIFIED TEAM LEADERS RAPID PROTOTYPING IN WHICH COMPANIES MAKE A WORKING FACSIMILE AT A VERY EARLY STAGE OF DEVELOPMENT THE EARLIER THE PROTOTYPE THE SOONER MANAGERS CAN SPOT NEW OPPORTUNITIES AND PROBLEMS AND DEAL WITH THEM THE STUDY SAID THE TACTIC IS KIND OF THE ACID TEST OF WHETHER A BUSINESS CAN PULL TOGETHER VARIOUS FUNCTIONS IN A WAY THAT HOLDS TOGETHER MR HOUT CONTINUES EMPLOYING RELATIVELY FEW DESIGN ENGINEERS COMPARED WITH THE NUMBER OF MARKETING PURCHASING FINANCE AND OTHER OFFICIALS INVOLVED IN PRODUCT DEVELOPMENT INCREASED ASSISTANCE FOR DESIGN ENGINEERS INCREASES THE ODDS THAT THE PRODUCT WILL WORK SELL AND MAKE A PROFIT THE STUDY SAID THE NOTION THAT MORE DESIGN ENGINEERS WORKING ON A PRODUCT WILL ACCELERATE ITS DEVELOPMENT IS NOT BORNE OUT AT THE SAME TIME THE STUDY CONCLUDED THAT SPEEDY NEWPRODUCT DEVELOPMENT ALSO DEPENDS ON HOW MANUFACTURERS SET THEIR RESEARCH PRIORITIES THE MOST SUCCESSFUL CONCERNS KEEP CLOSE TABS ON WHAT CUSTOMERS WANT SLOWER INNOVATORS GENERALLY EUROPEAN CONCERNS OFTEN IMPEDE DEVELOPMENT BY LETTING THEIR CHIEF EXECUTIVES AND BOARDS DIRECTLY INFLUENCE RESEARCH PRIORITIES 9307200083 930720 BUSINESS WORLD FAMILIAR CALIFORNIA SCENE A HOT TAX VOTE BY TIM W FERGUSON COMPARED TO SOME OTHER PARTS OF THE COUNTRY CALIFORNIA IS HAVING A POSTCARD PERFECT SUMMER NO MATTER THE WEATHER MANY RESIDENTS AREN'T HAVING A GREAT TIME IN THE DEPRESSED ECONOMY BUT STATE TREASURER KATHLEEN BROWN WENT EAST LAST WEEK TO TELL MUNICIPAL BOND ANALYSTS THAT THINGS ARE LOOKING UP IN SACRAMENTO BEFORE LAWMAKERS THERE PACKED THEIR BAGS FOR A SEASONAL RECESS THEY BEGAN TO ADDRESS THE COSTS OF DOING BUSINESS IN CALIFORNIA A DEAL WAS REACHED TO ELIMINATE UP TO 10 OF THE WORKERS COMPENSATION MESS AND SOME BABY STEPS WERE TAKEN TOWARD EASING THE PERMIT PROCESS UNDER THE STATE ENVIRONMENTAL LAW BUT WHAT THE POLITICIANS REALLY WOULD WRITE HOME ABOUT IS AN ON TIME CALIFORNIA BUDGET THAT SHIFTED A LOT OF MONEY FROM LOCAL GOVERNMENT TO THE STATE AND PUT ON THE BALLOT A MEASURE TO CEMENT A HALFCENT SALES TAX INCREASE THAT WAS TEMPORARILY ENACTED IN 1991 IT BROUGHT THE LEVY IN SOME JURISDICTIONS TO ABOUT 8 AMONG THE HIGHEST IN THE NATION THE US AT LARGE MAY FIND AS IT HAS MANY TIMES BEFORE POLITICAL IMPORT IN THIS NOV 2 ELECTION IN THE NATION'S BELLWETHER STATE DEMOCRATS IN THE STATEHOUSE AND REPUBLICAN GOV PETE WILSON CRAFTED A DEVIOUS PACKAGE FOR THE VOTERS FIRST IN ORDER TO CAPITALIZE ON FEARS THAT THEIR EARLIER REVENUE SHIFT WAS GOING TO GUT LOCAL LAW ENFORCEMENT THEY STIPULATED THAT THE PROCEEDS FROM THE SALESTAX EXTENSION WOULD GO TO LOCAL PUBLIC SAFETY WHICH THEY DEFINED BROADLY OF COURSE TAX ACCOUNTS BEING FUNGIBLE THIS BOOST EFFECTIVELY COULD BE USED TO PAY FOR ANYTHING THEN THE MEASURE WAS WRITTEN TO KNOCK OUT A PROPOSITION 13 REQUIREMENT THAT LOCAL TAX INCREASES MUST RECEIVE TWOTHIRDS VOTER APPROVAL A GUARANTEE ALREADY BREACHED SEVERAL TIMES AND TO SAY THAT FUNDS SO RAISED AREN'T COVERED UNDER THE STATE'S SOCALLED GANN SPENDING LIMIT ALSO ALREADY SHOT FULL OF HOLES FINALLY THE RULING CABAL TITLED THE ITEM THE LOCAL PUBLIC SAFETY PROTECTION AND IMPROVEMENT ACT OF 1993 AND WROTE A SUMMARY THAT SOMEHOW MANAGES NOT TO MENTION THE SALES TAX IT PROMISES A DEDICATED REVENUE SOURCE FOR PUBLIC SAFETY PURPOSES MUCH LIKE OTHER RECENT FORMS OF BALLOTBOX BUDGETING IN THE STATE CONSTITUTION TAX RESISTERS ACROSS AMERICA WILL RECOGNIZE MOST ELEMENTS OF THIS SCHEME WHAT'S MORE THE LEGISLATURE AND GOV WILSON ALSO MOVED TO JUNK A VENERABLE TWOTHIRDS APPROVAL THRESHOLD FOR LOCAL SCHOOL BONDS A SEPARATE MEASURE TO DO SO WILL APPEAR ON THE SAME NOV 2 BALLOT ALONG WITH A SCHOOLVOUCHER PROPOSITION QUALIFIED BY ACTUAL LIVING BREATHING CITIZENS OF THE STATE ADD A FEW COUNTY ITEMS EXPRESSING RAGE AT SACRAMENTO AND YOU HAVE THE MAKINGS OF AN UNPREDICTABLE AND VOLATILE MIXTURE BOTH TAXPAYERS AND TAX SPENDERS WILL HAVE REASON TO VOTE POPULAR FRUSTRATION WITH STATE OFFICIALS WHICH IS PARTLY AN OUTLET FOR UNRESOLVED CONFLICTS ON THE PART OF THOSE WHO WANT PUBLIC SERVICES BUT DON'T WANT TO PAY OR PRIVATIZE WHAT IT TAKES TO HAVE THEMCOULD RESULT EITHER IN SULLEN ACQUIESCENCE OR ELSE SOME KIND OF POP AT THE POLLS THE CENTER FOR THE CALIFORNIA TAXPAYER IN ROSEVILLE COMPLAINS THAT THE STATE PAYROLL WHICH NEVER QUIT GROWING IS NOW IN LINE FOR A 10 RAISE OVER THE NEXT TWO YEARS HOW WILL THAT PLAY IN A PLACE WHERE HUNDREDS OF THOUSANDS HAVE BEEN LAID OFF ONE ANGRY OMEN EMERGED FROM A LOS ANGELES COUNTY TOWN LAST WEEK BY NEARLY A 2TO1 MARGIN VOTERS IN WEST COVINA RECALLED AN ENTIRE CITY COUNCIL THAT LAST FALL HAD IMPOSED A 6 TAX ON UTILITY BILLS BECAUSE SUCH LEVIES HAVE BEEN A FAVORITE REVENUE SOURCE FOR MUNICIPALITIES IN RECENT YEARS THE RESULT ATTRACTED WIDESPREAD INCUMBENT ATTENTION THUS WAS ADDED ONE MORE NOTE OF EMPLOYMENT ANXIETY IN THE GOLDEN STATE A FEW WEEKS AGO THE DIRECTOR OF THE ANTISMOG AGENCY THAT LORDS OVER THE LOS ANGELES BASIN WAS QUOTED AS BEING WARY OF THE HYSTERIA IN THE LEGISLATURE ABOUT JOB LOSS IN THIS STATE CALIFORNIA FRETS AND RIGHTLY SO OVER EACH PLANT THAT GETS AWAY THAT CAN BE OVERDONE RICHARD NIXON IN 1962 MADE A CAMPAIGN ISSUE OF INDUSTRY HE SAID HAD LEFT THE STATE DURING PAT BROWN'S FIRST FOUR YEARS AS GOVERNOR AND ALLEGED THAT NEW YORK WAS DRAWING THREE TIMES AS MUCH BUSINESS GROWTH BUT THIS IS NOT 1962 CERTAINLY THE OWNERS OF GLITZY OFFICE AND COMMERCIAL PROPERTIES IN LOS ANGELES AND THIS WOULD INCLUDE SOME OF THE WORLD'S BIGGEST FINANCIAL INSTITUTIONS HAVE TO BE SLACKJAWED AT THE COLLAPSE OF VALUES AND THE ABSENCE OF ANY PROSPECTS FOR A REBOUND DOUBLY SO DOWNTOWN WHERE PUBLIC AGENCIES KEEP BUILDING THEIR OWN HIGHRISES INTO A VACANCY GLUT AND HOTEL OCCUPANCY RATES ARE UNDER 47 FOR 1993 HOUSTON IS THE LOWEST ELSEWHERE IN THE US AT 58 ACCORDING TO PKF CONSULTING MEANWHILE THE CITY'S 500 MILLION CONVENTION CENTER EXPANSION IS OPENING INTO A MARKET VOID GULP JUST WHAT FORM WORRY WILL TAKE ON ELECTION DAY IS A SUBJECT ON WHICH TREASURER BROWN CAN OFFER LITTLE ASSURANCE TO THE MUNI MAVENS PARTICULARLY THOSE WITH EXPOSURE TO LOCALGOVERNMENT ISSUES THE NEXT CARD FROM CALIFORNIA'S ELECTED OFFICIALS MAY TELL OF STORMY SKIES COME AUTUMN TUESDAY'S BUSINESS WORLD COLUMN FAMILIAR CALIFORNIA SCENE A HOT TAX VOTE OPED PAGE NAMED THE WRONG CALIFORNIA CITY THAT RECALLED ITS CITY COUNCIL LAST WEEK FOR HAVING IMPOSED A TAX ON UTILITY BILLS THAT CITY IS COVINA 9307200082 930720 BUSINESS BRIEF IPL SYSTEMS INC SECONDPERIOD LOSS REFLECTS SALES DROP AND END OF PACT IPL SYSTEMS INC SAID IT WILL REPORT A SECONDQUARTER LOSS OF 751000 OR 14 CENTS A SHARE ON A SHARP DECLINE IN SALES TO 8 MILLION THE DROP REFLECTS THE PREVIOUSLY DISCLOSED END OF A DISTRIBUTOR AGREEMENT THAT ACCOUNTED FOR AS MUCH AS 40 OF IPL SALES IN THE PRIOR YEAR CHIEF EXECUTIVE GREGORY R GRODHAUS SAID IN THE YEARAGO QUARTER THE WALTHAM MASS MAKER OF DISKDRIVE STORAGE DEVICES HAD NET INCOME OF 1568000 OR 29 CENTS A SHARE ON SALES OF 153 MILLION MR GRODHAUS NAMED CHIEF EXECUTIVE AND PRESIDENT MARCH 30 SAID IPL NONETHELESS MANAGED TO CUT ITS QUARTERTOQUARTER LOSSES BY MORE THAN HALF AND BOOST SALES BY 36 OVER THE 1993 FIRST QUARTER WHICH HE CALLED THE BASELINE FROM WHICH WE ARE BUILDING A NEW DIRECTION FOR THE COMPANY THE EXECUTIVE FORECAST THAT IPL'S SALES WOULD RISE 30 IN EACH SUCCESSIVE QUARTER THIS YEAR AND THAT THE COMPANY WOULD AGAIN BE PROFITABLE BY YEAR END 9307200080 930720 COMMODITIES PLUMMETING OIL PRICES QUICKLY TURN AROUND AS OPEC ANNOUNCES MEETING ON ROLE OF IRAQ BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PROVED AGAIN THAT WHILE IT CANNOT CONTROL WORLD OIL PRICES IT CAN INFLUENCE THEM PRICES OF OIL INITIALLY PLUNGED YESTERDAY TO THREEYEAR LOWS ON RENEWED INDICATIONS IRAQ MAY BEGIN EXPORTING CRUDE AGAIN SOON BUT THEN PRICES REBOUNDED IN HEAVY TRADING AFTER OPEC ANNOUNCED A JULY 28 EMERGENCY MEETING TO COPE WITH THE PROSPECT OF IRAQI CRUDE FLOWING INTO A GLUTTED MARKET SOME CRUDE FUTURES WERE UP MORE THAN 70 CENTS A BARREL AFTER THE ROLLERCOASTER DAY OF TRADING ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT CRUDE OIL FOR SEPTEMBER DELIVERY SETTLED AT 1705 A BARREL UP 74 CENTS FROM FRIDAY'S CLOSE ON THE NEW YORK MERCANTILE EXCHANGE WHERE A RECORD 216571 CRUDE CONTRACTS WERE TRADED CRUDE OIL FOR SEPTEMBER DELIVERY JUMPED 76 CENTS A BARREL TO SETTLE AT 1825 MAY FIRM PRICES THE PRICE SURGE ON THE NEW YORK MERCANTILE EXCHANGE AND THE DAY'S BROAD TRADING RANGE 124 A BARREL FOR THE SEPTEMBER CRUDEDEVELOPED WHAT ANALYSTS CALL A REVERSAL WHICH MAY PROMPT A FURTHER FIRMING IN PRICES SOME SUGGESTED IT COULD BE LABELED A KEY REVERSAL AN EVEN MORE SIGNIFICANT TECHNICAL PATTERN WHATEVER IT'S CALLED JOHN HILL A VICE PRESIDENT WITH MERRILL LYNCH & CO'S ENERGY TRADING DEPARTMENT IN NEW YORK SAID IT LOOKS LIKE AN IMPORTANT REVERSAL AND I WOULD EXPECT FOLLOWTHROUGH BUYING IN TODAY'S TRADING THE OIL MARKET ALREADY SKITTISH FROM WEEKS OF DEALING WITH THE SPECTER OF IRAQI OIL ADDING TO THE CURRENT OVERSUPPLY OF CRUDE WAS WHIPSAWED FIRST YESTERDAY BY THE UNITED NATIONS THE LOWS WITH THE AUGUST CRUDE FALLING BELOW 17 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE WERE REACHED AFTER THE UN REPORTED PROGRESS BUT WITHOUT DETAIL IN TALKS WITH IRAQ ON THE CONTENTIOUS ISSUE OF SEALING MISSILE SITES AND ON WEAPONS MONITORING THESE TALKS AREN'T DIRECTLY RELATED TO NEGOTIATIONS ABOUT A ONETIME SALE OF 16 BILLION OF IRAQI OIL OVER SIX MONTHS BETWEEN 500000 AND 600000 BARRELS A DAYFOR HUMANITARIAN PURPOSES AND TO HELP MEET SOME OF THE UN'S COSTS THERE STILL THE OIL MARKETS JUDGED THAT PROGRESS IN THE WEAPONS TALKS WOULD PROMOTE AN AGREEMENT IN THE OIL NEGOTIATIONS WHICH WERE SUSPENDED LAST WEEK AND ARE TO RESUME SOMETIME THIS WEEK BUT IT ALSO TRIGGERED A REACTION IN LIBREVILLE GABON WHERE JEAN PING THAT COUNTRY'S OIL MINISTER AND ALSO OPEC'S PRESIDENT ABRUPTLY ENDED WEEKS OF WATCHING OIL PRICES SLIDE LOWER AND WAITING FOR THE OUTCOME OF THE UN'S NEGOTIATIONS WITH IRAQ AFTER A FLURRY OF PHONE CALLS TO OTHER OIL MINISTERS OF THE 12NATION OPEC HE CALLED AN EMERGENCY OPEC MEETING TENTATIVELY SCHEDULED FOR JULY 28 THE MEETING MR PING SAID IN A PHONE INTERVIEW WILL DEAL WITH FUNDAMENTAL OVERPRODUCTION OF OIL BY OPEC AND WITH THE POSSIBILITY OF IRAQ REENTERING THE MARKET I THINK WE OPEC CAN SOLVE THE PROBLEM COLLECTIVELY MR PING SAID ON THE WORD OF THE EMERGENCY MEETING FROM MR PING THE OIL MARKET PROMPTLY REVERSED COURSE AND PRICES LEAPED RECOVERING NOT ONLY THE MORNING'S LOSSES BUT MUCH OF THE GROUND LOST LAST WEEK OPEC PUT A FLOOR TO PRICES SAID CAROLINE CAMPBELL AN OIL TRADER AT SMITH BARNEY HARRIS UPHAM IN LONDON BECAUSE OPEC MIGHT DO SOMETHING THE MARKET CAN'T GO DOWN ANY MORE SHE SAID PETER BEUTEL A FUTURES TRADER AND ANALYST WITH THE NEW YORK COMMODITY FIRM OF BRODY WHITE & CO WAS EVEN MORE BULLISH OVER THE CALLING OF THE OPEC MEETING AN EMERGENCY MEETING IS WHAT WE HAVE BEEN LOOKING FOR AND IT MAY HAVE CHANGED THE PSYCHOLOGY OF THE MARKET HE SAID IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES FLUCTUATED WILDLY AS TRADERS REACTED TO THE WEEKEND NEWS COVERAGE OF THE RELENTLESS RAINS AND FLOODING ACROSS MUCH OF THE UPPER MISSISSIPPI RIVER BASIN SOYBEAN FUTURES AT ONE POINT HIT THEIR LIMIT UP OR MAXIMUM ONEDAY GAIN AT 7575 A BUSHEL PROFITTAKING PUSHED PRICES LOWER ALTHOUGH NOVEMBER SOYBEAN FUTURES STILL CLOSED WITH A GAIN OF 85 CENTS A BUSHEL AT 736 A BUSHEL CORN FUTURES PRICES FOLLOWED A SIMILAR TRACK AS CORN FUTURES FOR DECEMBER DELIVERY TRADED AS HIGH AS 258 A BUSHEL BEFORE CLOSING AT 252 A BUSHEL UP 125 CENTS AFTER THE CLOSE OF TRADING YESTERDAY US AGRICULTURE DEPARTMENT'S WEEKLY FIGURES SHOWED A FOURPERCENTAGEPOINT DECLINE IN THE QUALITY OF THE NATION'S SOYBEAN CROP WITH 42 OF THE CROP RATED GOOD TO EXCELLENT COMPARED WITH 46 LAST WEEK THE USDA ALSO REPORTED THAT THE QUALITY OF THE CORN CROP SLIPPED TWO PERCENTAGE POINTS AS GOVERNMENT FIGURES SHOWED 49 OF THE CORN CROP RATED GOOD TO EXCELLENT COMPARED WITH 51 A WEEK AGO PRECIOUS METALS A SHARP RISE IN OIL PRICES FAILED TO PROPEL GOLD A TRADITIONAL HEDGE AGAINST INFLATION HIGHER GOLD FOR AUGUST DELIVERY SETTLED AT 39240 AN OUNCE OFF 50 CENTS ON NEW YORK'S COMMODITY EXCHANGE TRADERS AND ANALYSTS SAID THAT THE MARKET NEEDS TO SEE ADDITIONAL SUSTAINED NONSPECULATIVE BUYING OF GOLD TO LIFT FUTURES PRICES ABOVE THE SYMBOLIC 400 LEVEL RIGHT NOW THE MARKET'S LACKING FOLLOWTHROUGH SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO IN NEW YORK GOLD FOR AUGUST DELIVERY HAD TRADED IN A RELATIVELY WIDE RANGE BETWEEN 39650 TO 39210 YESTERDAY BEFORE SETTLING JUST ABOVE THE DAY'S LOW SILVER PRICES ALSO ENDED WEAKER ON THE COMEX THE ACTIVE SEPTEMBER CONTRACT FINISHED AT 5065 AN OUNCE DOWN 08 CENT PLATINUM AND PALLADIUM PRICES ROSE PLATINUM FOR OCTOBER DELIVERY GAINED 60 CENTS TO 40810 AN OUNCE WHILE PALLADIUM FOR SEPTEMBER DELIVERY CLIMBED 45 CENTS TO 13845 AN OUNCE 9307200079 930720 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ASYST TECHNOLOGIES INC AN INITIAL OFFERING OF 1325000 COMMON SHARES VIA NEEDHAM & CO AND ADAMS HARKNESS & HILL INC ENRON CORP AND PANHANDLE EASTERN CORP AN OFFERING OF ABOUT 315 MILLION OF COMMON LIMITED PARTNER UNITS IN A NEWLY FORMED NATURALGAS PIPELINE PARTNERSHIP TO BE CALLED NORTHERN BORDER PARTNERS LP PROMUS COMPANIES INC A SHELF OFFERING OF UP TO 200 MILLION OF DEBT SECURITIES UNIONFED FINANCIAL CORP AN OFFERING OF UP TO 45 MILLION OF ITS COMMON STOCK 9307200078 930720 WHAT'S NEWS BUSINESS AND FINANCE ROSTENKOWSKI'S ROLE IN CLINTON'S BUDGET DEFICITCUTTING PLAN COULD BE THREATENED BY THE GUILTY PLEA A FORMER HOUSE POSTMASTER ENTERED OVER EMBEZZLEMENT CHARGES PAPERS FILED IN THE CASE INDICATE THE POSTMASTER HELPED DEMOCRAT ROSTENKOWSKI IMPROPERLY CONVERT STAMPS TO CASH A LAWENFORCEMENT OFFICIAL SAID SUPPORT FOR DROPPING ANY FORM OF ENERGY TAX FROM THE DEFICITREDUCTION BILL HAS SPREAD FROM THE HOUSE TO THE SENATE AS TWO SENIOR DEMOCRATIC SENATORS HAVE BEGUN PUSHING THE IDEA GM SETTLED ALL OUTSTANDING CLASS ACTIONS INVOLVING ITS 47 MILLION PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS BY AGREEING TO GIVE EACH OWNER A 1000 COUPON TOWARD THE PURCHASE OF A NEW GM TRUCK THE CAR MAKER MAINTAINS THE TRUCKS ARE SAFE AND SAID AGAIN THAT IT DOESN'T PLAN A RECALL OIL FUTURES INITIALLY PLUNGED TO THREEYEAR LOWS ON RENEWED INDICATIONS IRAQ MAY BEGIN EXPORTING CRUDE AGAIN SOON BUT PRICES REBOUNDED AFTER OPEC ANNOUNCED AN EMERGENCY MEETING TO COPE WITH THE PROSPECT OF IRAQ'S EXPORTS SOME CRUDE FUTURES WERE UP MORE THAN 70 CENTS A BARREL HF AHMANSON PLANS A SALE OF 12 BILLION OF NONPERFORMING HOME LOANS TO BEAR STEARNS WHICH WILL LEAD TO A SECONDQUARTER LOSS OF ABOUT 290 MILLION THE HOME SAVINGS OF AMERICA PARENT IS ACCELERATING PLANS TO SHED NONPERFORMING ASSETS UNLIKE OTHER THRIFTS PRIMERICA REPORTED A 25 RISE IN SECONDQUARTER PROFIT WHILE EARNINGS AT TRAVELERS WHICH PRIMERICA PARTLY OWNS SOARED 40 ON COST CUTS PROFIT AT BROKERAGE UNIT SMITH BARNEY ROSE MCDONNELL DOUGLAS SAID PROFIT SOARED TO A RECORD 170 MILLION INCLUDING UNUSUAL TAX AND ACCOUNTINGRELATED GAINS IN THE SECOND QUARTER DESPITE A 20 PLUNGE IN REVENUE COMMODITY REGULATORS ARE SEEKING TO PERMANENTLY BAR FROM THE TRADING FLOORS SEVEN TRADERS WHO WERE CONVICTED OF FELONIES IN A GOVERNMENT INVESTIGATION OF THE FUTURES EXCHANGES SALOMON'S PHIBRO OIL REFINING UNIT PLANS TO BUY MOVE AND INTEGRATE INTO ITS SYSTEM A DOW CHEMICAL PLANT THE 200 MILLION INVESTMENT IS A BET THAT THE OIL INDUSTRY SLUMP IS ENDING CHASE MANHATTAN POSTED STRONGERTHANEXPECTED SECONDQUARTER PROFIT OF 233 MILLION UP 53 FROM A YEAR AGO PROPELLED BY RECORD TRADING REVENUE AND A DROP IN BADDEBT RESERVES JAMESWAY FILED FOR PROTECTION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE AND THE RETAILER OBTAINED A 75 MILLION CREDIT LINE TO CONTINUE OPERATIONS A CHINESE COMPANY INTENDS TO SELL 150 MILLION OF DOLLARDENOMINATED 10YEAR NOTES THE FIRST TIME SINCE 1949 THAT A CHINESE BORROWER IS PLANNING TO TAP THE US PUBLIC BOND MARKETS THE WORLD'S MOST SUCCESSFUL MANUFACTURERS CURB INTERNAL POLITICS AND FOSTER COOPERATION AMONG EMPLOYEES INSTEAD OF RELYING ON THE HOTTEST MANAGEMENT FADS A SURVEY INDICATES BANKS WERE TOLD THEY MUST CLEARLY INFORM BUYERS THAT MUTUAL FUNDS AREN'T INSURED DEPOSITS THE COMPTROLLER OF THE CURRENCY IN ITS LONGAWAITED GUIDELINES CONSOLIDATED EARLIER RULINGS ON MUTUAL FUND SALES BY BANKS TOKYO STOCKS FELL IN THIN DEALINGS AS JAPAN'S ELECTION FAILED TO CHEER INVESTORS ABOUT THE ECONOMY THE NIKKEI INDEX DROPPED 18061 POINTS TO 2015092 LONDON STOCKS ROSE FRANKFURT EQUITIES JUMPED 13 PUSHED IN PART BY HOPES FOR A CUT IN GERMAN INTEREST RATES BONDS LEHMAN BROTHERS TREASURY INDEX 537954 UP 698 COMMODITIES OIL 1770 A BARREL UP 49 CENTS DOW JONES FUTURES INDEX 12780 UP 102 SPOT INDEX 12304 UP 042 DOLLAR 10848 YEN UP 093 17070 MARKS OFF 00090 9307200077 930720 BUSINESS BRIEF RTZ CORP NERCO SUBSIDIARY SELLS OFF ALL OIL GAS ASSETS FOR CASH BRITISH MINING GROUP RTZ CORP SAID ITS US UNIT NERCO INC AGREED TO SELL ITS OIL AND GAS ASSETS FOR ABOUT 510 MILLION RTZ SAID NERCO BASED IN PORTLAND ORE SOLD ITS BLACK LAKE FIELD LOUISIANA AND BLACK LAKE PIPELINE CO TO WESTERN GAS RESOURCES INC FOR 1561 MILLION THE STOCK OF NERCO'S SUBSIDIARY NERCO OIL & GAS INC WHICH HOLDS NERCO'S OFFSHORE OIL AND GAS PROPERTIES WAS SOLD TO LOUISIANA LAND & EXPLORATION CO FOR 3537 MILLION AT THE TIME OF THE ACQUISITION OF NERCO IN FEBRUARY RTZ SAID IT PLANNED TO SELL NERCO'S OIL AND GAS ASSETS TO CONCENTRATE ON ITS MAIN BUSINESS OF COAL MINING THOSE INTERESTS PRODUCED 956 BILLION CUBIC FEET OF GAS AND 19 MILLION BARRELS OF OIL IN 1992 AT THE END OF 1992 NERCO'S RESERVES WERE 414 BILLION FEET OF GAS AND 105 MILLION BARRELS OF OIL RTZ SAID IT ALREADY HAS SOLD SOME OF NERCO'S PRECIOUSMETAL MINING ASSETS AND IS AT AN ADVANCED STAGE OF NEGOTIATION FOR THE SALE OF THE REMAINDER IT SAID IT EXPECTED TO COMPLETE THE FINAL SALES BEFORE YEAR'S END 9307200076 930720 INTERNATIONAL JAPAN'S MIYAZAWA VOWS TO HANG ON DESPITE LDP LOSSES BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE DAY AFTER VOTERS SHOOK UP JAPAN'S OLD REGIME THE COUNTRY'S LEADERS BEGAN THE COMPLEX PROCESS OF PIECING TOGETHER A NEW POLITICAL ORDER THE BATTLE OVER LEADERSHIP DOMINATED THE AFFAIRS OF THE RULING LIBERAL DEMOCRATIC PARTY WHICH SUFFERED ITS WORST ELECTORAL SETBACK SINCE TAKING OVER THE GOVERNMENT IN 1955 PRIME MINISTER KIICHI MIYAZAWA DEFYING THE HOPES OF MANY IN HIS PARTY INSISTED HE WOULD HANG ON TO POWER AT LEAST FOR A WHILE BUT OTHER PARTY LEADERS SAID IT WAS ONLY A MATTER OF DAYS BEFORE MR MIYAZAWA STEPPED DOWN AND BECAUSE THERE ISN'T A CLEAR SUCCESSOR THE QUEST TO REPLACE HIM COULD PLACE FURTHER STRAINS ON THE PARTY THE POLITICAL SPOTLIGHT ALSO FELL ON THE JAPAN NEW PARTY THE YEAROLD REFORM GROUP THAT DID WELL IN SUNDAY'S VOTE AND IS EMERGING AS THE CRUCIAL SWING VOTE BETWEEN PROLDP AND ANTILDP FORCES THE JNP WHICH OFFERED ONLY VAGUE POLICY PROPOSALS IN THE CAMPAIGN NOW CONFRONTS THE DIFFICULT TRANSITION FROM POPULIST MOVEMENT TO EFFECTIVE POLITICAL PARTY IT STILL ISN'T CLEAR IF THE PARTY WILL HELP THE LDP FORM A GOVERNMENT WE CAN'T REALLY SAY FOUNDER MORIHIRO HOSOKAWA TOLD A TELEVISION INTERVIEWER WE HAVEN'T TALKED TO OUR PEOPLE YET WE'VE ONLY JUST BEEN ELECTED THAT VACILLATING IS ALREADY IRRITATING SUPPORTERS AND RAISING DOUBTS ABOUT THE PARTY'S HEFT I VOTED FOR YOU BECAUSE I THOUGHT YOU WOULD WORK FOR CHANGE ONE CALLER BERATED MR HOSOKAWA ON A TV TALK SHOW BUT IF YOU WON'T MAKE A SERIOUS EFFORT TO BECOME PART OF THE NEXT GOVERNMENT YOU WILL END AS A PASSING FASHION SUCH JOCKEYING WILL INTENSIFY IN THE DAYS LEADING TO THE SPECIAL PARLIAMENT SESSION AT WHICH A NEW GOVERNMENT WILL BE CHOSEN THE SESSION MUST BE CALLED WITHIN A MONTH OF SUNDAY'S VOTE A CONSENSUS IS EMERGING THAT THE SESSION WILL OPEN AUG 2 AND THAT THE PARTIES WILL QUICKLY TRY TO AGREE ON A NEW PREMIER THIS COMMOTION IS THE BEGINNING OF THE COLLAPSE OF THE POLITICAL PARTY SYSTEM CREATED IN 1955 CONTENDED GERALD CURTIS A PROFESSOR OF POLITICAL SCIENCE AT COLUMBIA UNIVERSITY BUT HE STRESSED THAT THE SYSTEM HASN'T YET DISINTEGRATED FAR FROM IT THE LDP DESPITE ITS RELATIVELY POOR SHOWING IS STILL THE LARGEST POLITICAL PARTY IN JAPAN AND CURRENT BETTING SAYS THE PARTY WILL REMAIN A CENTRAL PART OF GOVERNMENT FOR THE FORESEEABLE FUTURE EITHER IN A COALITION OR AS A RULING MINORITY AT HIS MONDAY AFTERNOON NEWS CONFERENCE MR MIYAZAWA HELD OUT THE POSSIBILITY THAT HE WOULD BE THE LDP'S CANDIDATE FOR PRIME MINISTER IN THE NEXT SESSION OF PARLIAMENT FEW POLITICIANS TAKE THAT SERIOUSLY BUT MR CURTIS SAID MR MIYAZAWA MIGHT INDEED STAY IN POWER FOR A WHILE BECAUSE THE CURRENT POLITICAL CONFUSION COULD TRIGGER NEW ELECTIONS SOON AND IT'S POSSIBLE NO OTHER LDP LEADER WILL WANT TO HEAD SUCH A SHORTLIVED ADMINISTRATION TO A CERTAIN DEGREE THE LDP'S FUTURE WILL BE DETERMINED BY WHAT THE JAPAN NEW PARTY DOES CLEARLY THE JNP WANTS TO MAXIMIZE ITS BARGAINING LEVERAGE DESPITE ITS ATTACKS ON THE LDP DURING THE ELECTION THE JNP ACTUALLY SPENT MUCH OF ITS TIME COMPETING AGAINST THE OTHER NEW OPPOSITION PARTIES SO IT SEEMS UNLIKELY TO MANY ANALYSTS HERE THAT IT WILL NOW JOIN FORCES WITH THOSE GROUPS IT MAKES SENSE STRATEGICALLY FOR THEM TO SIDE WITH THE LDP SAID POLITICAL ANALYST TAKAYOSHI MIYAGAWA YET WORKING TOO CLOSELY WITH THE LDP WOULD OFFEND THE YOUNG GRASSROOTS SUPPORTERS THE PARTY HAS CULTIVATED AND POSSIBLY EVEN THE PARTY'S NEWLY ELECTED MEMBERS OF PARLIAMENT AN LDP ALLIANCE WOULD DEFINITELY CAUSE INTERNAL PROBLEMS SAID YURIKO KOIKE A FORMER TV NEWSCASTER WHO WAS ELECTED SUNDAY ON THE JNP SLATE JNP LEADER MR HOSOKAWA IS LIKE A BALLOON LOFTED HIGH BY THE WINDS OF MEDIA ATTENTION SAYS HARUO SHIMADA A PROFESSOR AT KEIO UNIVERSITY WHO SOMETIMES ADVISES MR HOSOKAWA ONCE THE BALLOON GETS CLOSE TO JAPAN'S MORE CUNNING EXPERIENCED POLITICIANS ADDS MR SHIMADA IT'S CERTAIN TO COLLAPSE CLAY CHANDLER CONTRIBUTED TO THIS ARTICLE 9307200075 930720 MARKETING & MEDIA FRANKLIN ELECTRONIC MEDICAL TEXT MOUNT HOLLY NJ FRANKLIN ELECTRONIC PUBLISHERS INC PLANS TO PUBLISH AN ELECTRONICBOOK VERSION OF A SCIENTIFIC AMERICAN MEDICAL REFERENCE FOR ITS DIGITAL BOOK SYSTEM THE TEXT WILL BE AN ABSTRACT OF THE THREEVOLUME LOOSELEAF SCIENTIFIC AMERICAN MEDICINE AND WILL BE AIMED AT DOCTORS AND MEDICAL STUDENTS THE DIGITAL BOOK SYSTEM IS A POCKETSIZE ELECTRONIC BOOK THAT ACCEPTS INTERCHANGEABLE MEMORY CARDS 9307200074 930720 INTERNATIONAL BRIEF SEMITECH MICROELECTRONICS INC UNIT WILL SELL TO ITS PARENT A 51 SHARE IN SINGER CO SEMITECH GLOBAL CO'S PLAN TO SELL TO ITS PARENT A 51 SHARE IN SINGER CO HAS BEEN APPROVED BY SHAREHOLDERS SEMITECH GLOBAL SAID MONDAY ITS MINORITY SHAREHOLDERS APPROVED A RESOLUTION TO SELL THE SINGER STAKE TO SEMITECH MICROELECTRONICS INC FOR 850 MILLION IN CASH AND SHARES THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOTH SEMITECHS JAMES TING UNVEILED THE PLAN A MONTH AGO AS AN EFFORT TO FOCUS ATTENTION ON SEMITECH GLOBAL'S VALUE WHICH HE CONSIDERED UNDERAPPRECIATED ON THE HONG KONG STOCK MARKET BASED IN HONG KONG SEMITECH GLOBAL ALSO OWNS STAKES IN A GERMAN SEWING MACHINE MAKER GM PFAFF AG AND SANSUI ELECTRIC CO A JAPANESE MAKER OF CONSUMER ELECTRONICS SINGER A SEWING MACHINE MAKER AND RETAILER OF CONSUMER ELECTRICAL AND ELECTRONIC PRODUCTS IS LISTED ON THE NEW YORK STOCK EXCHANGE SEMITECH MICROELECTRONICS WILL CONTINUE TO OWN 42 OF SEMITECH GLOBAL 9307200073 930720 BUSINESS BRIEF FRAME TECHNOLOGY CORP COMPANY POSTS A DEFICIT CITES WEAKNESS IN REVENUE FRAME TECHNOLOGY CORP CITING MANAGEMENT PROBLEMS POOR SALES AND RESTRUCTURING COSTS POSTED A FISCAL SECONDQUARTER LOSS OF 194 MILLION OR 145 A SHARE A YEAR EARLIER THE WRITING AND PUBLISHING SOFTWARE MAKER REPORTED NET INCOME OF 763000 OR SIX CENTS A SHARE REVENUE IN THE JUNE 30 PERIOD FELL ALMOST A THIRD TO 12 MILLION FROM 176 MILLION A YEAR EARLIER THE SAN JOSE CALIF COMPANY BLAMED THE DROP ON LOWERTHANEXPECTED SALES IN NORTH AMERICA WITHOUT THE RESTRUCTURING AND DOWNSIZING CHARGES THE LOSS WOULD HAVE BEEN 58 MILLION OR 43 CENTS A SHARE 9307200072 930720 BUSINESS BRIEFS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC PURCHASED SHREVEPORT REFRIGERATION INC FOR ABOUT 56 MILLION A COOPER INDUSTRIES INC AND ROLLSROYCE PLC JOINT VENTURE RECEIVED ORDERS FOR 70 MILLION OF GAS TURBINES AND CENTRIFUGAL GAS COMPRESSORS HALO INDUSTRIES INC ACQUIRED IDEACRAFT INC TERMS WEREN'T DISCLOSED WERTHEIM SCHRODER & CO OPENED A CHICAGO OFFICE OFFERING INVESTMENT SERVICES ARVIN INDUSTRIES INC WILL PURCHASE 499 OF WAY ASSAUTO A DIVISION OF IAO INDUSTRIE RIUNITE SPA TERMS WEREN'T DISCLOSED ALLNET COMMUNICATION SERVICES INC SIGNED A THREEYEAR AGREEMENT WITH AMERITECH MOBILE COMMUNICATIONS TERMS WEREN'T DISCLOSED 9307200071 930720 BUSINESS BRIEF GENCORP INC ACQUISITION OF RENEER FILMS FROM GOODYEAR COMPLETED GENCORP INC FAIRLAWN OHIO SAID IT COMPLETED THE ACQUISITION OF RENEER FILMS CORP FROM GOODYEAR TIRE & RUBBER CO AKRON OHIO TERMS WEREN'T DISCLOSED GENCORP SAID RENEER WHICH MAKES VINYL LAMINATES FOR FURNITURE AND CONSUMER ELECTRONICS WILL BE A UNIT OF ITS POLYMER PRODUCT BUSINESS RENEER BASED IN AUBURN PA HAS ABOUT 280 EMPLOYEES AND HAD SALES OF ABOUT 40 MILLION IN 1992 GOODYEAR HAS INDICATED THAT IT WILL USE PROCEEDS FROM THE SALE TO REDUCE DEBT GENCORP SAID GENCORP MAKES REINFORCED PLASTICS COATED FABRICS AND INDUSTRIAL RUBBER PRODUCTS FOR AUTOMOTIVE APPLICATIONS 9307200070 930720 BUSINESS BRIEF INLAND STEEL INDUSTRIES INC DEFICIT IN SECOND QUARTER NARROWED FROM 1992 LOSS INLAND STEEL INDUSTRIES INC SHRANK ITS NET LOSS IN THE SECOND QUARTER TO 25 MILLION OR 30 CENTS A SHARE AS SHIPMENTS SURGED 17 ON STRONGER DEMAND IN THE MIDWEST AND SOUTH THE RESULTS FOR THE NATION'S FIFTH LARGEST STEELMAKER WERE BETTER THAN ANALYSTS' EXPECTATIONS AND RAISED THE POSSIBILITY THAT OTHER STEELMAKERS COULD EXCEED FORECASTS A YEAR AGO THE CHICAGO CONCERN HAD A LOSS OF 236 MILLION OR 102 A SHARE EXCLUDING A GAIN FROM THE SALE OF AN INVESTMENT WITH THE GAIN THE LOSS WAS 85 MILLION OR 53 CENTS A SHARE INLAND WHICH HAD AN OPERATING PROFIT IN THE PERIOD SAID IT IS CONFIDENT OF A RETURN TO PROFITABILITY IN THE SECOND HALF 9307200069 930720 LEISURE & ARTS JAZZ WOODY ALLEN WHAT THE MUSIC SAYS ABOUT THE MAN BY JOHN MCDONOUGH NEW YORK A FEW YEARS AGO I HAD LUNCH WITH DICK HYMAN THE NOTED PIANIST AND MUSICOLOGIST WHO IN ADDITION TO HIS USUAL ACTIVITIES HAD BEEN DOING THE MUSIC FOR A STRING OF WOODY ALLEN MOVIES I ASKED WHAT HIS NEXT ALLEN PROJECT WOULD BE THERE ISN'T ONE HE ANSWERED WOODY IS SCORING HIS MOVIES FROM HIS RECORD COLLECTION THESE DAYS NEITHER OF US SEEMED SURPRISED JUST AS BRAQUE AND PICASSO ONCE PASTED SCRAPS OF NEWSPAPER TYPOGRAPHY AND OTHER POP BRICABRAC ONTO THE CALCULATED AMBIGUITY OF THEIR CUBIST CANVASES ALLEN HAD BEEN PASTING SCRAPS OF HIS OLD RECORDS ONTO ACUTELY CONTEMPORARY CHARACTERS AND SITUATIONS AND FINDING IN THE CONTRASTS UNEXPECTED OFTEN ELEGANT RESONANCES I'VE ALWAYS SUSPECTED THAT IF ONE REALLY WANTS TO UNDERSTAND ALLEN FORGET INGMAR BERGMAN AND BOB HOPE EXAMINE HIS RECORD COLLECTION I HAD THAT OPPORTUNITY RECENTLY AS ALLEN SUSPENDED HIS NORMAL EMBARGO ON INTERVIEWS TO TALK MUSIC WE MET IN HIS PARK AVENUE SCREENING ROOM WHERE EIGHT BINS OF LPS LINED A WALL SEVERAL THOUSAND MORE WERE IN HIS APARTMENT OVER ON EAST 74TH STREET HALF ARE IN DOGEARED PAPER SLEEVES SAYS A FRIEND THEY'VE BEEN PLAYED SO MUCH THAT'S THE WAY IT SHOULD BE WITH RECORDS I THINK IT MEANS THEY'RE VALUED AS ART NOT DECORATION BOOKS ARE THE SAME WAY MY COLLECTION OF CLASSICAL MUSIC AND MODERN JAZZ IS LARGE ALLEN SAID AS HE SANK INTO A SMALL SOFA IT RUNS FROM PREBACH TO CONTEMPORARY COMPOSERS HE ALSO HAS A GOOD OPERA COLLECTION AND LOVES AMERICAN SONGS AND SINGERS UP UNTIL ABOUT 1950 GERSHWIN KERN PORTER HE SPECIFIED BASICALLY MY TASTE NEVER WENT BEYOND THAT HE SAID ALTHOUGH HE CAN TALK KNOWLEDGEABLY ABOUT MODERN JAZZ MASTERS FROM BUD POWELL TO ORNETTE COLEMAN ONE SENSES HE APPRECIATES THEM MORE THAN HE LOVES THEM I'M ESSENTIALLY A NEW ORLEANS JAZZ FAN HE FINALLY ADMITTED THAT'S 95 OF MY INTEREST AND WHAT I LISTEN TO ALLEN'S COMMENTS WERE OCCASIONED BY THE RELEASE OF A REMARKABLE CD ON WHICH HE PLAYS SOME MAGNIFICENTLY ARCHAIC NEW ORLEANS CLARINET ON A BEATUP 12 HORN GIVEN TO HIM YEARS AGO BY CLARINETIST KENNY DAVERN THE ALBUM IS CALLED THE BUNK PROJECT MUSICMASTERS AS IN BUNK JOHNSON THE LATE TRUMPETER WHO WAS PART OF THE FOUNDING JAZZ GENERATION IN TURNOFTHECENTURY NEW ORLEANS BUT WHO WAS NOT DISCOVERED AND RECORDED UNTIL 1942 BY THEN HE WAS A PRIMEVAL FIGURE A RIP VAN WINKLE WHO'D NODDED OFF WITH THE DEMISE OF THE OLD MUSIC AND AWAKENED UNTOUCHED BY MODERNISM IN A WORLD BRACING FOR BEBOP JOHNSON'S ATTACK WAS SHAKY AND HIS INTONATION OFTEN QUIVERED LIKE JELLO AT A TIME WHEN THE OLDEST OF THOSE WHO HAD GROWN FAMOUS PLAYING JAZZ WERE BARELY PAST 40 JOHNSON CLAIMED TO BE WELL INTO HIS 60S SO HIS FRAIL TECHNIQUE WAS BLAMED ON OLD AGE AS IF MUSICIANSHIP WERE GOVERNED BY SOME STATUTE OF LIMITATIONS BUT YOUTH IS NAIVE ABOUT AGE AND JAZZ WAS STILL TOO YOUNG TO KNOW BETTER JOHNSON PROBABLY SOUNDED THE SAME IN 1910 IN A YOUNG MAN'S MUSIC JOHNSON WAS A LIVING VOICE FROM AN AGE THOUGHT LOST HIS DISCOVERERS LIKE THE SCIENTISTS IN JURASSIC PARK WERE CONVINCED THEY HAD UNEARTHED THE DNA OF THE FIRST TRUE JAZZ THEY SET OUT FIRST TO CAPTURE IT THEN TO CLONE IT BUT THESE PURISTS NEVER BOTHERED TO SEPARATE JOHNSON'S CONCEPTUAL PRIMITIVISM FROM HIS FAULTY CRAFT OR EVEN THE HAPHAZARD TECHNOLOGY OF HIS RECORDINGS SO IT ALL GOT ROLLED INTO ONE CRUDE NOT TO SAY CONTROVERSIAL AESTHETIC OF NEW ORLEANS FUNDAMENTALISM DEFINED AND PERSONIFIED BY JOHNSON AND HIS CLARINETIST GEORGE LEWIS IT IS STILL PRECARIOUSLY UPHELD BY A HAPPY FEW AT PRESERVATION HALL IN NEW ORLEANS AND EVERY MONDAY NIGHT AT MICHAEL'S PUB IN MANHATTAN AS YOU MAY KNOW THIS IS WHERE PEOPLE WHO KNOW NOTHING ABOUT NEW ORLEANS JAZZ HAVE BEEN COMING FOR 22 YEARS TO HEAR WOODY ALLEN MAKE MOURNFUL HOWLS ON HIS OLD RAMPONE HORN EDDIE DAVIS WHO HAS PLAYED BANJO WITH ALLEN AT MICHAEL'S PUB FOR 10 YEARS PUT TOGETHER THE BUNK PROJECT AND EVEN GOT THE CHEAP UNIONHALL SOUND BEAUTIFULLY RIGHT MOST OF THE PLAYERS WERE PROS THE SIMPLE TUNES DEMANDED LESS THAN THEIR FULL EFFORTS BUT ALLEN CLEARLY STRUGGLED TO THE LIMIT OF HIS POWERS AND THIS MAKES HIS VOICE THE PUREST MOST AUTHENTIC IN THE GROUP HIS MUSIC IS FULL OF EERIE PRIMAL BEAUTY I HOLD BACK NOTHING HE SAYS WITH A MIX OF PRIDE AND RESIGNATION THEY SLOW DOWN FOR ME BUT I'M STILL GIVING TO THE MAX IT'S SO HEARTFELT BECAUSE I'M TRYING SO HARD NOT TO EMBARRASS MYSELF ALLEN IS MODEST ABOUT HIS TALENTS BUT MAKES NO APOLOGIES FOR HIS STUDIED INCORRECTNESS MAYBE HE COULD POLISH HIS PITCH OR NARROW HIS VIBRATO BUT I WOULDN'T WANT TO HE INSISTS I WORK TO GET THAT VIBRATO THAT CRUDENESS IS INHERENT IN THE MUSIC NOT EVERYONE HAS ALLEN'S ENTHUSIASM FOR THE ACCIDENTAL DISSONANCES THAT FILL NEW ORLEANS MUSIC GEORGE LEWIS OFTEN PLAYED NOTES IN A CHORD THAT WERE JUST PLAIN WRONG DAVIS SAYS AND I POINT THIS OUT TO WOODY BUT HE LEARNED TO PLAY DIRECTLY OFF THE LEWIS RECORDS HE SAYS I DON'T CARE I LIKE IT THAT WAY' AND WHY NOT WOULD ANYONE PURGE THE WRONG NOTES FROM SCHOENBERG OR MONK HE DOESN'T CARE BECAUSE HE ACCEPTED THE MUSIC UNCONDITIONALLY BEFORE ANYONE TOLD HIM IT WAS WRONG IT WAS 1949 AND ALLEN WAS 14 EVERY SATURDAY MORNING THERE WAS A DJ ON THE RADIO NAMED TED HUSING WHO PLAYED DIXIELAND HE RECALLS ONE DAY I HEARD HIM PLAY A CONCERT BY NEW ORLEANS CLARINETIST SIDNEY BECHET THAT GOT ME INTERESTED AND BLOCKED OUT OTHER THINGS FOREVER HE NEVER DID SEE BUNK WHO DIED AS ALLEN'S AWARENESS OF JAZZ WAS FORMING BUT HE DID SEE BECHET AND LEWIS I WOULD GO TO THE CHILD'S PARAMOUNT ON 44TH STREET FOR THE JAM SESSIONS ALLEN SAYS I WENT EARLY ONE DAY CREPT DOWN THE STAIRS AND WATCHED LEWIS REHEARSE I WAS STUNNED BY THE BEAUTY AND EMOTION OF HIS SOUND RIGHT THERE IN THE ROOM AND WHEN BECHET CAME THAT WAS REALLY AN EVENT THE PLACE WAS JAMMED AND ORSON WELLES WAS IN THE FIRST ROW AS A BOY ALLEN WOULD SCRAPE 35 CENTS TOGETHER AND BUY A POP RECORD IN A NEIGHBORHOOD STORE I WAS ALWAYS TOLD TO GET A DECCA RECORD HE RECALLS THAT'S HOW ADULTS BOUGHT RECORDS THE MUSIC DIDN'T MATTER IN MY FAMILY A QUALITY RECORD WAS A DECCA RECORD BUT ONCE JAZZ CAPTURED HIM RECORD BUYING BECAME A SACRED RITUAL IT USED TO BE A FULL AFTERNOON'S ENTERTAINMENT FOR ME TO TAKE THE SUBWAY INTO MANHATTAN FROM BROOKLYN WITH 2 OR 3 TO SPEND HE SAYS I WOULD GO TO THIS PLACE CALLED THE JAZZ RECORD CENTER NEAR SIXTH AVENUE AND WALK UP THE STAIRS IT WAS A DIRTY OLD SHOP WITH A BILLION RECORDS IN CARDBOARD BOXES AND BINS AND THEY WERE ALL JAZZ I'D SPEND AFTERNOONS BROWSING AND CHANGING MY MIND 50 TIMES THEN I'D FINALLY BUY ONE 10INCH LP FOR 298 AND TAKE IT HOME ON THE SUBWAY IT WAS SUCH A TREAT JUST TO HAVE IT IT WAS MINE IT WAS A WONDROUS EXPERIENCE HAVING LIMITS IN THE FACE OF THIS GREAT DESIRE TO EXPLORE AND ABSORB YOU'D TAKE SO MUCH TIME PICKING JUST THE RIGHT RECORD BECAUSE WEEKS OF SAVINGS WERE AT STAKE THEN YOU'D REALLY LISTEN TO IT EVERY NOTE AND PHRASE OVER AND OVER THAT'S ALL GONE NOW I CAN BUY WHATEVER I WANT TODAY BUT MY LISTENING IS NOT AS DEEP WHEN YOU'RE YOUNG YOU CAN BE SO FOCUSED I'M 57 NOW AND I STILL CAN'T IMAGINE MY LIFE WITHOUT THE RECORDS I BOUGHT WHEN I WAS YOUNG MR MCDONOUGH IS A MUSIC WRITER IN CHICAGO 9307200068 930720 BUSINESS BRIEF NORTHEAST UTILITIES COURT REJECTS 1990 CHALLENGE TO ISSUANCE OF UNIT'S BONDS NORTHEAST UTILITIES SAID THE NEW HAMPSHIRE SUPREME COURT DISMISSED A CHALLENGE TO THE 1990 ISSUANCE OF CERTAIN BONDS BY NORTHEAST'S PUBLIC SERVICE CO OF NEW HAMPSHIRE UNIT IN 1990 A LOWER COURT HAD RULED THAT PUBLIC SERVICE FAILED TO MEET CERTAIN REGULATORY REQUIREMENTS IN ISSUING SOME 250 MILLION IN TAXEXEMPT POLLUTION CONTROL BONDS SINCE THEN PUBLIC SERVICE HAS HELD THE REQUIRED PUBLIC HEARINGS AND CHANGES IN NEW HAMPSHIRE ADMINISTRATIVE REGULATIONS RENDERED THE CHALLENGE MOOT THE COURT SAID NORTHEAST BASED IN HARTFORD CONN COMPLETED ITS 23 BILLION ACQUISITION OF PUBLIC SERVICE IN JUNE 1992 PUBLIC SERVICE HAD BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION AS A RESULT OF HEAVY DEBT CAUSED BY COST OVERRUNS ON ITS SEABROOK NUCLEAR POWER PLANT 9307200067 930720 BUSINESS BRIEF SANMINA CORP CONCERN EXPECTS TO REPORT RECORD NET FOR THIRD PERIOD SANMINA CORP CITING RECORD SALES HIGHER PROFIT MARGINS AND LOWER INTEREST EXPENSE SAID IT EXPECTS TO REPORT RECORD PROFIT FOR ITS THIRD QUARTER ENDED JULY 3 SANMINA EXPECTS TO POST NET INCOME OF ABOUT 18 MILLION OR 26 CENTS A SHARE ON REVENUE OF ABOUT 22 MILLION SAID RANDY FURR SANMINA'S CHIEF FINANCIAL OFFICER IN AN INTERVIEW IN THE YEARAGO QUARTER THE SAN JOSE CALIF COMPANY POSTED A NET LOSS OF 176000 OR FOUR CENTS A SHARE ON REVENUE OF 159 MILLION SANMINA WHICH PRODUCES CIRCUIT BOARDS FOR COMPANIES SAW AN INCREASE IN SALES TO BIG CUSTOMERS LIKE XEROX CORP AND CABLETRON SYSTEMS INC SAID JURE SOLA SANMINA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SANMINA IS A BIG BENEFICIARY OF THE MOVE AMONG ELECTRONIC MANUFACTURERS TOWARD OUTSOURCING IN WHICH A COMPANY SEEKS TO CUT OUT SOME OF ITS FIXED COSTS BY CONTRACTING OUT CERTAIN MANUFACTURING TASKS THAT TREND LOOKS GOOD FOR THE NEXT QUARTER AND NEXT YEAR MR SOLA SAID 9307200066 930720 WHO'S NEWS M/ACOM INC M/ACOM INC WAKEFIELD MASS RICHARD W HALE 55 YEARS OLD RESIGNED AS A DIRECTOR AND AS VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S MICROELECTRONICS DIVISION IN THE WAKE OF A MANAGEMENT RESTRUCTURING THE ELECTRONICS AND MICROWAVE PARTS MAKER DIDN'T NAME A SUCCESSOR 9307200065 930720 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JULY 16 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER DELEWARE COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY PA WILL REDEEM IN A CONDITIONAL REDEMPTION ON AUG 19 1993 THE FOLLOWING COMMERCIAL DEVELOPMENT REVENUE BONDS SERIES 1982 DUE AUG 1 OF THE INDICATED YEAR 11 DUE 1996 AND 1125 DUE 2002 MELLON BANK PHILADELPHIA IS TRUSTEE MOFFAT COUNTY COLO WILL REDEEM ON AUG 15 1993 445000 PRINCIPLE AMOUNT OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS 1980 SERIES A DUE FEB 15 1995 2001 AND 2012 CONTINENTAL BANK CHICAGO IS TRUSTEE SOUTH SHORE VILLAGE II LEASED HOUSING CORP WILL REDEEM ON SEPT 1 1993 ITS FIRST MORTGAGE ELDERLY HOUSING REVENUE BONDS SERIES A DUE SEPT 1 19942016 UNITED COUNTIES TRUST CO SUMMIT NJ IS TRUSTEE 9307200064 930720 BUSINESS BRIEF UST INC QUARTERLY PROFIT ROSE 15 ON GAINS IN TOBACCO WINE UST INC REPORTED A 15 INCREASE IN SECONDQUARTER EARNINGS CITING SALES GAINS IN ITS TOBACCO AND WINE DIVISIONS NET INCOME ROSE TO 898 MILLION OR 41 CENTS A SHARE FROM 781 MILLION OR 35 CENTS A SHARE A YEAR EARLIER SALES ROSE 7 TO 2803 MILLION UST SAID IN GREENWICH CONN THAT SALES OF MOIST SMOKELESS TOBACCOS INCLUDING TWO NEW FLAVORS OF ITS SKOAL LONG CUT LINE WERE RESPONSIBLE FOR THE INCREASE IN TOBACCO SALES DOMESTIC UNIT VOLUME ROSE 56 TO 1604 MILLION CANS WHILE SIXMONTH UNIT VOLUME ROSE 34 FOR THE SIX MONTHS NET INCOME ROSE 17 TO 1735 MILLION OR 80 CENTS A SHARE FROM 1479 MILLION OR 66 CENTS A SHARE THE LATEST PERIOD INCLUDES A ONETIME CHARGE OF 327 MILLION OR NINE CENTS A SHARE BECAUSE OF AN ACCOUNTING CHANGE SIXMONTH RESULTS ALSO REFLECT AN AFTERTAX GAIN OF 22 MILLION OR 10 CENTS A SHARE RESULTING FROM THE SALE OF A BUSINESS SALES ROSE 10 TO 5465 MILLION 9307200063 930720 INTERNATIONAL BRIEF GECALSTHOM NV NET GROUP PROFIT ROSE 92 IN ITS YEAR ENDED MARCH 31 ANGLOFRENCH ELECTRIC POWER AND TRANSPORTATION GROUP GECALSTHOM NV SAID THAT ITS NET GROUP PROFIT WAS UP 92 TO 308 MILLION EUROPEAN CURRENCY UNITS 3485 MILLION IN ITS FISCAL YEAR ENDED MARCH 31 1993 COMPARED WITH 282 MILLION ECUS A YEAR EARLIER THE COMPANY IS A JOINT VENTURE OF GENERAL ELECTRIC CO PLC OF THE UK AND ALCATELALSTHOM NV THE FRENCH TELECOMMUNICATIONS POWER AND TRANSPORTATION CONGLOMERATE GECALSTHOM IS BEST KNOWN AS THE BUILDER OF THE TRAINAGRANDEVITESSE OR HIGHSPEED TRAIN IT IS ALSO A MAJOR MANUFACTURER OF TURBINES GENERAL ELECTRIC CO OF THE UK ISN'T RELATED TO GENERAL ELECTRIC CO IN THE US REVENUE WAS UP 6 TO 798 BILLION ECUS FROM 753 BILLION ECUS THE PREVIOUS YEAR GECALSTHOM SAID IN A COMMUNIQUE THAT THE COMPANY HAD RECEIVED 976 BILLION ECUS OF ORDERS OVER ITS 1992/93 FISCAL YEAR BRINGING THE TOTAL TO 1559 BILLION ECUS AT YEAR END 18 BILLION ECUS HIGHER THAN THE PREVIOUS YEAR AT THE SAME TIME 9307200062 930720 LEISURE & ARTS BOOKSHELF REAL CAUSE OF S&L CRISIS BY GREGORY A FOSSEDAL LIKE THE BANKS THEMSELVES L WILLIAM SEIDMAN IS GUILTY OF A FEW ERRORS AND OMISSIONS IN HIS PROVOCATIVE ACCOUNT OF THE SAVINGS AND LOAN BAILOUT FULL FAITH AND CREDIT TIMES BOOKS 320 PAGES 25 INDEED THE MAN WHO SERVED AS CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP FROM 1985 TO 1991 AND AS SUCH WAS THE OFFICIAL OVERLORD OF THE S&L SYSTEM NEVER SEEMS TO PIN DOWN THE SUBSTANTIVE WHO OR PRECISE WHAT OF THE SYSTEM'S NEARCOLLAPSE OH THERE'S DIRT MR SEIDMAN REPORTS THAT HE RECEIVED A TELEPHONE CALL FROM THE BUSH WHITE HOUSE COUNSEL C BOYDEN GRAY WHO WANTED TO KNOW HOW MR SEIDMAN WOULD BE HANDLING NEIL BUSH'S ROLE IN THE COLLAPSE OF THE SILVERADO SAVINGS & LOAN MR GRAY SAYS HE WAS MERELY MAKING APPROPRIATE FACTUAL INQUIRIES MR SEIDMAN STRONGLY IMPLIES THAT HE ACTED IMPROPERLY MR SEIDMAN ALSO COVERS HIS STINT AS AN AIDE TO PRESIDENT FORD HE RECALLS HIS SOLUTION TO A CLASSIC '70S PROBLEM HOW TO SILENCE HUBERT HUMPHREY THE FORMER VICE PRESIDENT DRONED ON AND ON AT A WHITE HOUSE CONFERENCE ON INFLATION WHILE THE PRESIDENT WAITED WILD GESTURES AND URGENT NOTES FAILED TO QUELL HUMPHREY FINALLY MR SEIDMAN TURNED OFF THE SPEAKER SYSTEM FOR A FEW SECONDS HUMPHREY GOT THE MESSAGE AND CONCLUDED HIS REMARKS CONSIDERING IT WAS THIS CONFERENCE THAT LAUNCHED MR FORD'S WHIP INFLATION NOW STRATEGY WHICH ASSAULTED INFLATION THROUGH SAPPY WIN BUTTONS AND EXHORTATIONS TO UNIONS AND CORPORATIONS IT'S TOO BAD MR SEIDMAN WASN'T ABLE TO PULL THE PLUG ON THE WHOLE EVENT IN ANY CASE MR SEIDMAN'S STEP BACK INTO RECENT HISTORY BEFORE THE S&L COLLAPSE PUTS THE FINAL DEBACLE INTO NECESSARY PERSPECTIVE AFTER ALL THE OVERALL BANKFAILURE RATE IN THE US HAS BEEN AT HISTORICALLY HIGH LEVELS FOR MORE THAN A DECADE AND AS THE TITANS OF THE POLICY THAT CAUSED THIS CRISIS MARCH THROUGH FULL FAITH AND CREDIT ALAN GREENSPAN PAUL VOLCKER JIM BAKER GEORGE SHULTZ ONE WONDERS HOW DID SUCH LARGE MEN MANAGE TO LOOM SO SMALL WHEN THEIR SHIP SANK MR SEIDMAN POINTS HIS FINGER AT EASY TARGETS SUCH AS DONALD REGAN AND JOHN SUNUNU BUT THESE BELTWAY FIGURES CAN HARDLY BE CALLED TO ACCOUNT FOR THE GENERAL ECONOMIC PICTURE BEHIND A CRISIS THAT MR SEIDMAN RIGHTLY DATES BACK TO THE STAGFLATIONARY '70S THE SURPRISING AND REFRESHING CONCLUSION FROM REGULATOR SEIDMAN IS THAT THEY SHOULDN'T BE BLAMED AT LEAST NOT THE WAY CONVENTIONAL ANALYSTS DO THE S&L FAILURE WAS NOT ONE OF DISHONEST BANKERS MEDDLING CONGRESSMEN OR LAZY REGULATORS THOUGH THESE EXISTED BANKS SELDOM FAIL BECAUSE THEIR MANAGEMENT IS FRAUDULENT ALTHOUGH THERE ARE OCCASIONAL CASES OF BANKERS LITERALLY STEALING MR SEIDMAN WRITES MOST BANKS FAIL FOR A SIMPLE REASON THEY LEND MONEY WHICH THEY ARE UNABLE TO RETRIEVE AND AS IT HAPPENS MANY OF MR SEIDMAN'S BASKET CASES MADE BAD ULTIMATELY UNRECOVERABLE LOANS THAT MADE SENSE UNDER THE ECONOMIC CONDITIONS PREVAILING AT THE TIME THAT IS WHY EXAMINERS OFTEN DIDN'T TAKE EXCEPTION TO THEM HOW WERE FARMERS OIL PRODUCERS MINING COMPANIES AND THEIR LOCAL BANKS SUPPOSED TO ANTICIPATE MR VOLCKER'S MONETARY BELTTIGHTENING OR MR BAKER'S PLAZA AND LOUVRE ACCORDS BEYOND ITS PARTICULAR CAUSES THE S&L CATASTROPHE WAS FUNDAMENTALLY LINKED TO THE SURGE AND COLLAPSE OF THE VALUE OF THE COLLATERAL SUPPOSEDLY BACKING UP THE LOANS THAT'S WHY THE CRISIS FIRST REARED ITS HEAD IN PLACES SUCH AS TEXAS WHERE DECLINING OIL PRICES LED TO A REGIONAL FALL IN REALESTATE PRICES LATER CALIFORNIA LOAN PORTFOLIOS CRUMBLED COURTESY OF GOV PETE WILSON'S TAX HIKES JUST AS INFLATION IN THE '70S LED THE FED TO A HARSH TIGHTENING OF MONETARY POLICY IN THE EARLY AND LATE '80S SO THE REAGAN DEREGULATION LED TO A REGULATORY BACKLASH UNDER GEORGE BUSH THE OTHER CULPRIT IS FEDERAL INSURANCE FOR BANK DEPOSITS WHICH ARTIFICIALLY CUSHIONED THE DOWNFALL OF VARIOUS BANK MANAGERS WHO GREW RICH THROUGH FAILURE THE SUM OF THESE PARTS EQUALS WHAT INVESTOR GEORGE SOROS HAS DESCRIBED AS A CLASSIC REFLEXIVE DYNAMIC IN OTHER WORDS THE VILLAIN OF THE S&L CRISIS IS A VICIOUS CYCLE NOT A LEERING BANDIT WHO CAN BE PUT ON A POSTER THE CAUSE MR SEIDMAN WRITES WAS NOT FRAUD BUT A SET OF INTERLOCKING POLICY DECISIONS HOW COULD THIS TRAP HAVE BEEN AVOIDED MR SEIDMAN DOESN'T REALLY HAVE AN ANSWER HIS BOOK ENDS WITH A CHEERFUL ASSESSMENT OF THE BANKING SYSTEM WHICH HE ARGUES FOR ALL ITS DEFAULTS IS THE WORLD'S MOST FLEXIBLE SUPPLIER OF SEED CORN THE FINANCIER OF THE BIOTECH COMPUTER AND OTHER COMPETITIVE US INDUSTRIES FULL FAITH AND CREDIT DOES A PUBLIC SERVICE IN UNDERMINING THE MYTH THAT THE S&L CRISIS IS MAINLY A STORY OF BENT BANKERS AND CRAFTY CONGRESSMEN BUT THE BOOK DOESN'T SATISFACTORILY RESPOND TO THE PROBLEMS IT LOCATES IN BANK INSURANCE REGULATION AND IMPLICITLY IN AN UNSTABLE MONETARY REGIME THAT'S TOO BAD BECAUSE MR SEIDMAN HAD AS GOOD A VIEW AS ANYONE OF ONE OF THE MOST EXPENSIVE DEFECTS EVER IN THE AMERICAN BANKING SYSTEM MR FOSSEDAL IS DIRECTOR OF THE EMERGINGMARKET DIVISION AT LEHRMAN BELL MUELLER CANNON INC AND EXECUTIVE CHAIRMAN OF THE ALEXIS DE TOCQUEVILLE INSTITUTION 9307200061 930720 BUSINESS BRIEF TEMPLEINLAND INC SECONDPERIOD NET FELL 56 ON LOW DEMAND AND PRICES TEMPLEINLAND INC SECONDQUARTER EARNINGS PLUNGED 56 REFLECTING LOW DEMAND AND PRICES FOR CONTAINERS AND CONTAINERBOARD THE DIBOLL TEXAS COMPANY SAID INTERNATIONAL DEMAND FOR CONTAINERS IS WEAK THE COMPANY SAID AND INVENTORIES OF THE COMPANY'S CONTAINERBOARD HAVE INCREASED ABOVE TARGETS IF THE SITUATION CONTINUES THE COMPANY SAID IT WILL TAKE UNSCHEDULED DOWNTIME AT ITS LINERBOARD MILLS IN THE YEAR'S SECOND HALF TO REDUCE INVENTORIES BY AT LEAST 30000 TONS TEMPLEINLAND EARNINGS FELL TO 209 MILLION OR 38 CENTS A SHARE FROM 477 MILLION OR 85 CENTS A SHARE REVENUE ROSE 27 TO 7026 MILLION FROM 6844 MILLION IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY TEMPLEINLAND FELL 1 TO 43625 HIGHER EARNINGS IN BUILDING MATERIALS AND FINANCIAL SERVICES COULDN'T OFFSET THE DROP IN THE PAPER BUSINESS THE COMPANY SAID PRETAX EARNINGS IN BUILDING PRODUCTS ROSE TO 227 MILLION FROM 121 MILLION WHILE PRETAX CONTAINER EARNINGS FELL TO 11 MILLION FROM 315 MILLION 9307200060 930720 BUSINESS BRIEF POPE & TALBOT INC HIGHER LUMBER PRICES HELP TO REVERSE 2NDPERIOD LOSS POPE & TALBOT INC SAID AN IMPROVEMENT IN LUMBER PRICES HELPED IT TO REVERSE A LOSS AND POST SECONDQUARTER NET INCOME OF 47 MILLION OR 40 CENTS A SHARE BUT THE RESULTS WERE BELOW ANALYSTS' EXPECTATIONS OF AN AVERAGE OF 51 CENTS A SHARE SENDING THE STOCK DOWN 225 OR 93 TO 22 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY A YEAR EARLIER THE PORTLAND ORE PAPER PULP AND WOODPRODUCTS CONCERN REPORTED A LOSS OF 43 MILLION OR 37 CENTS A SHARE REVENUE GREW 17 TO 1512 MILLION FROM 1298 MILLION THE COMPANY SAID PRICES IN ALL SEGMENTS DECLINED FROM FIRSTQUARTER LEVELS BUT REMAINED STRONGER THAN A YEAR EARLIER 9307200059 930720 TECHNOLOGY BRIEF BOOTS CO BRITISH FIRM TO WITHDRAW ITS MANOPLAX HEART DRUG UK'S BOOTS CO IS VOLUNTARILY WITHDRAWING ITS CONGESTIVE HEART FAILURE DRUG MANOPLAX FROM THE MARKET AFTER A STUDY INDICATED PROBLEMS AT LOW DOSES THE NOTTINGHAMBASED RETAILER AND DRUG COMPANY SAID RECENT ANALYSIS INDICATED A RISE IN HOSPITALIZATIONS IN PATIENTS USING 75MILLIGRAM DOSAGES IN APRIL BOOTS WITHDREW THE 100MILLIGRAM DOSAGE FROM THE MARKET AND ADVISED US AND UK DOCTORS TO USE THE LOWER DOSAGE A STUDY HAD INDICATED AN INCREASE IN MORTALITY RATES OF PATIENTS ON THE HIGHER DOSE IN VIEW OF THE NEW DATA THE CONTINUED USE OF MANOPLAX CAN NO LONGER BE RECOMMENDED THE COMPANY SAID IN A STATEMENT ON THE LONDON STOCK EXCHANGE YESTERDAY BOOTS SHARES CLOSED AT 435 PENCE UP 13 PENCE MANOPLAX WAS LAUNCHED IN THE UK IN SEPTEMBER 1992 AND IN THE US IN MARCH 9307200058 930720 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP LOWCOST ALPHA AXP CHIPS ARE EXPECTED WITHIN A YEAR DIGITAL EQUIPMENT CORP WORKING TO BROADEN THE APPEAL OF ITS ALPHA AXP MICROPROCESSOR SAID IT WILL DEVELOP LOWCOST LOWPOWER VERSIONS OF THE CHIP FOR MOBILE COMPUTING WITHIN A YEAR DIGITAL SAID THAT RICH WITEK A DESIGNER OF THE CHIP WHO LEFT TO WORK FOR APPLE COMPUTER INC 15 MONTHS AGO WILL REJOIN DIGITAL TO HEAD UP THE EFFORT MR WITEK 38 YEARS OLD WILL REMAIN IN AUSTIN TEXAS BUT MOST OF DIGITAL'S DESIGN EFFORT WILL BE IN ITS PALO ALTO CALIF DESIGN CENTER DIGITAL MAYNARD MASS STARTED SELLING TWO POWERFUL VERSIONS OF THE ALPHA MICROPROCESSOR LAST YEAR BUT THE COMPANY HAS SAID IT EXPECTS VERSIONS WILL BE MADE FOR ALL TYPES OF COMPUTERS FROM PALMTOPS TO SUPERCOMPUTERS 9307200057 930720 BUSINESS BRIEF UNISYS CORP NET FELL A BIT IN 2ND PERIOD AS REVENUE DECLINED 77 UNISYS CORP'S NET INCOME FELL SLIGHTLY IN THE SECOND QUARTER FROM A YEAREARLIER PERIOD THAT INCLUDED A BIG ONETIME GAIN THE BLUE BELL PA INFORMATION SYSTEMS AND COMPUTER COMPANY SAID IT IS CONTINUING TO BENEFIT FROM RECENT COSTCUTTING FOR THE QUARTER PROFIT WAS 103 MILLION OR 39 CENTS A SHARE COMPARED WITH 1054 MILLION OR 45 CENTS A SHARE IN THE YEAREARLIER PERIOD THE RESULTS WERE ROUGHLY IN LINE WITH ANALYSTS' EXPECTATIONS EXCLUDING LAST YEAR'S GAIN RESULTING FROM TAX BENEFITS OF OPERATING LOSS CARRYFORWARDS YEARAGO SECONDQUARTER PROFIT WAS 884 MILLION OR 35 CENTS A SHARE THE COMPANY'S REVENUE REMAINED SLUGGISH FALLING 77 TO 193 BILLION FROM 209 BILLION THE COMPANY ALSO SAID ORDERS WERE DOWN FOR THE LATEST QUARTER DESPITE UNISYS'S SUCCESS IN CUTTING COSTS BY REDUCING ITS WORK FORCE TO 52000 FROM 70000 IN 1991 ANALYSTS HAVE BEEN CONCERNED ABOUT THE COMPANY'S LACKLUSTER REVENUE GROWTH THE COMPANY BLAMED ECONOMIC WEAKNESS IN EUROPE AND JAPAN FOR THE SOFT REVENUE JAMES A UNRUH CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID COSTCUTTING HAD RESULTED IN AN OPERATING PROFIT MARGIN OF 113 THE HIGHEST IN FIVE YEARS FOR THE SIX MONTHS ENDED JUNE 30 NET INCOME WAS 3636 MILLION OR 148 A SHARE COMPARED WITH 1537 MILLION OR 57 CENTS A SHARE THE RESULTS INCLUDED A ONETIME GAIN IN THE FIRST QUARTER OF 2038 MILLION OR 83 CENTS A SHARE REVENUE FELL 64 TO 383 BILLION FROM 41 BILLION 9307200056 930720 BUSINESS BRIEF MCGRAWHILL INC NET ROSE 17 IN 2ND QUARTER PACED BY FINANCIAL SERVICES MCGRAWHILL INC NEW YORK SAID SECONDQUARTER EARNINGS ROSE 17 PACED BY A 25 JUMP IN OPERATING PROFIT IN ITS FINANCIALSERVICES GROUP NET ROSE TO 432 MILLION OR 88 CENTS A SHARE FROM 368 MILLION OR 75 CENTS A SHARE IN THE YEAR EARLIER QUARTER REVENUE ROSE 14 TO 4909 MILLION ANOTHER OUTSTANDING PERFORMANCE BY STANDARD & POOR'S AND IMPROVED RESULTS AT JJ KENNY AND OUR JOINT VENTURE THE MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO HELPED PRODUCE THE SECONDQUARTER GAIN SAID JOSEPH DIONNE CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY'S STANDARD & POOR'S RATINGS GROUP SUBSIDIARY BENEFITED FROM THE ROBUST VOLUME OF NEW ISSUES IN THE CORPORATE MUNICIPAL STRUCTURED FINANCE AND INTERNATIONAL MARKETS A SLOWDOWN IN ADVERTISING CAUSED OPERATING PROFITS TO DROP 21 IN ITS INFORMATION AND PUBLICATION SERVICES GROUP ADVERTISING PAGES AT BUSINESS WEEK MAGAZINE FELL 16 IN APRIL AND MAY AND DIDN'T BEGIN TO REGAIN MOMENTUM UNTIL JUNE THE COMPANY SAID 9307200055 930720 TECHNOLOGY BRIEF BRISTOLMYERS SQUIBB CO FDA GROUP RECOMMENDS ANTIDEPRESSANT'S APPROVAL BRISTOLMYERS SQUIBB CO NEW YORK SAID A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE RECOMMENDED APPROVAL FOR A NEW ANTIDEPRESSANT DRUG ITS SERZONE BRAND OF NEFADAZONE CLINICAL DEPRESSION AFFECTS MORE THAN 11 MILLION PEOPLE IN THE US EACH YEAR ALTHOUGH THE MARKET FOR ANTIDEPRESSANTS IS EXPECTED TO GROW ABOUT 25 TO 17 BILLION THIS YEAR THE FIELD IS CROWDED BECAUSE OF THE NUMBER OF COMPETITORS SAYS HEMANT SHAH ANALYST AT HKS & CO ELI LILLY & CO PFIZER INC AND SMITHKLINE BEECHAM PLC EACH HAVE ANTIDEPRESSANTS ON THE MARKET BRISTOLMYERS WILL BE LUCKY IF ITS PRODUCT DOES 100 MILLION IN REVENUE AT ITS PEAK ABOUT FIVE YEARS FROM NOW MR SHAH SAYS THE FDA STILL MUST DETERMINE WHETHER THE DRUG CONCERN'S SERZONE MEETS APPLICABLE SAFETY AND EFFICACY REQUIREMENTS BEFORE GRANTING FINAL PRODUCT APPROVAL 9307200054 930720 BUSINESS BRIEF PILKINGTON PLC UK AND ARGENTINE PARTNERS TO BUY ITALIAN GLASS MAKER PILKINGTON PLC A UK GLASS MAKER AND TECHINT FINANZIARA OF ARGENTINA ARE TOGETHER ACQUIRING THE ITALIAN GLASS MANUFACTURER SOCIETA ITALIANA VETRO SPA FOR A TOTAL OF 210 BILLION LIRA 1324 MILLION PILKINGTON AND TECHINT WILL OWN SIV EQUALLY IN A STATEMENT PILKINGTON SAID IT WILL FUND THE ACQUISITION FROM COMMITTED BORROWING FACILITIES AND THAT THE AGREEMENT IS CONDITIONAL UPON APPROVAL FROM THE EUROPEAN COMPETITION AUTHORITIES TECHINT IS A LARGE ARGENTINE INDUSTRIAL GROUP WITH EXTENSIVE INTERESTS IN EUROPE AMONG ITS MAJOR ACTIVITIES ARE STEEL MANUFACTURING ENGINEERING AND INDUSTRIAL PLANT CONSTRUCTION SIV IS ONE OF MANY ITALIAN STATE COMPANIES SCHEDULED TO BE PRIVATIZED ITS ASSETS AT DEC 31 WERE ABOUT 312 BILLION LIRA THE ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING ON THE LONDON STOCK EXCHANGE PILKINGTON'S SHARES CLOSED AT 132 PENCE 196 A SHARE UP 1 9307200053 930720 LEISURE & ARTS THEATER SHAKESPEARE ON JUSTICE AND VIRTUE BY MELANIE KIRKPATRICK NEW YORK KEVIN KLINE WAS ENLISTED THIS SPRING AS ONE OF THE RESCUERS OF THE JOSEPH PAPP PUBLIC THEATER AILING UNDER THE MISMANAGEMENT AND OUTRE THEATRICAL SENSIBILITY OF THENDIRECTOR JOANNE AKALITIS MR KLINE NAMED ASSOCIATE PRODUCER OF THE PUBLIC'S SHAKESPEARE FESTIVAL HAS LONG BEEN A STALWART OF THE FESTIVAL'S ACTING TEAM WHERE HE HAS WON ACCLAIM FOR AMONG OTHER ROLES HAMLET AND RICHARD III HE IS A RARITY AMONG AMERICAN FILM ACTORS IN THAT HE IS A POWERFUL PRESENCE ONSTAGE AS WELL AS ONSCREEN WHEN MR KLINE PUTS ON TIGHTS AND DECLAIMS 16THCENTURY VERSE THE RESULT IS OFTEN MAGIC SUCH IS THE CASE THIS MONTH IN THE PUBLIC'S UNEVEN PRODUCTION OF MEASURE FOR MEASURE MR KLINE STARS AS VINCENTIO THE ONCELIBERTINE DUKE WHO HAS FORSWORN HIS WAYWARD HABITS AND IS TRYING TO RESTORE MORAL ORDER TO THE LICENTIOUS CITY OF VIENNA HIS JUDICIOUS DUKE HAS JUST THE RIGHT SOUPCON OF SELFMOCKERY ESPECIALLY WHEN HE DONS HIS DISGUISE AS A GENTLY MEDDLESOME FRIAR MEASURE FOR MEASURE ISN'T PRODUCED MUCH THESE DAYS PROBABLY BECAUSE MODERN AUDIENCES HAVE A HARD TIME KNOWING WHAT TO MAKE OF THIS DARK WORK A GRIM TALE OF SEVERAL SETS OF STARCROSSED LOVERS FOR WANT OF A BETTER CLASSIFICATION IT'S CALLED A COMEDY BUT THAT'S REALLY ONLY BECAUSE THE STAGE ISN'T STREWN WITH BODIES IN THE FINAL SCENE THERE'S NOT MUCH THAT'S FUNNY ABOUT IT WITH THE EXCEPTION OF A FEW SCENES THAT AREN'T TERRIBLY WELL INTEGRATED INTO THE PLAY AND THAT APPEAR TO BE ALMOST AN AFTERTHOUGHT AS IF SHAKESPEARE DECIDED HE'D BETTER LIGHTEN IT UP IF HE EXPECTED TO SELL ANY TICKETS A SURE SIGN THAT THIS PRODUCTION HAS LOST ITS WAY IS THAT COMEDY IS KING MR KLINE'S PORTRAYAL ASIDE THE BEST PERFORMANCES ARE GIVEN BY TOM MARDIROSIAN ETHAN PHILLIPS AND KEN CHEESEMAN AS POMPEY ELBOW AND FROTH A SLAPSTICK TRIO WHO ARE LARGELY IRRELEVANT TO THE MAIN POINTS OF THE PLAY THE CORPULENT KARLA BURNS IS AMUSING TOO AS THE OVERRIPE MISTRESS OVERDONE IT ALL MAKES FOR GOOD FUN NO MEAN ACHIEVEMENT TO BE SURE BUT IT OBSCURES WHAT THIS EXCEEDINGLY COMPLEX PLAY IS ALL ABOUT JUST WHAT IS IT ABOUT IN BRIEF THE DISTINCTION BETWEEN MORALITY AND VIRTUE AND BETWEEN LAW AND JUSTICE SHAKESPEARE'S THEME IS THAT JUSTICE IS NOT ALWAYS SERVED BY OBSERVING THE LETTER OF THE LAW AND THAT VIRTUE DOES NOT ALWAYS LIE IN FIXED MORAL PRECEPTS THESE POINTS ARE MADE IN THE MORALLY AMBIGUOUS CHARACTERS OF ANGELO AND ISABELLA TWO HIGHMINDED CITIZENS WHOSE SHARED FLAW IS THAT THEY LACK EXPERIENCE AND COMPASSION ANGELO CHARGED BY THE DUKE TO ENFORCE THE LONGDORMANT ANTIVICE LAWS SENTENCES ISABELLA'S BROTHER CLAUDIO TO DEATH FOR GETTING HIS FIANCEE PREGNANT WHEN THE BEAUTIFUL ISABELLA PLEADS FOR HER BROTHER'S LIFE ANGELO FINDS TO HIS SURPRISE THAT LIKE CLAUDIO HE CAN'T CONTROL HIS LUST HE OFFERS TO SPARE HER BROTHER IF SHE WILL YIELD TO HIM ISABELLA REFUSES SHE SELFISHLY CAN'T BRING HERSELF TO THINK OF ANYONE EXCEPT HERSELF EVEN THOUGH THE PRICE OF VIRTUE IS HER BROTHER'S LIFE NEITHER ROLE IS EASY AND NEITHER THE WOODEN MARC JOHNSON ANGELO NOR THE SOMBER LISA GAY HAMILTON ISABELLA IS UP TO IT THERE ARE OTHER PROBLEMS WITH THIS PRODUCTION ONE IS A CLUNKY SET THAT UTTERLY FAILS TO TAKE ADVANTAGE OF THE DELACORTE THEATER'S EXPANSIVE OUTDOOR SPACE IN CENTRAL PARK ANOTHER IS THE SETTING FOR A REASON THAT ELUDES ME DIRECTOR MICHAEL RUDMAN HAS CHOSEN TO SHIFT THE SETTING FROM VIENNA TO AN UNNAMED CARIBBEAN ISLAND JUST BEFORE THE START OF WORLD WAR II PERHAPS HE HOPES TO EXCUSE THE CHARACTERS' REPREHENSIBLE BEHAVIOR BY PLACING THEM IN A TROPICAL PARADISE AT A TIME IN HISTORY WHEN THE WORLD IS FALLING APART THIS IS A STRETCH IT'S A PARTICULAR SHAME CONSIDERING THAT THE PRODUCTION IS BEING STAGED IN THE HEART OF A CITY THAT HAS RICH PARALLELS WITH SHAKESPEARE'S VIENNA NEW YORK CITY IN THE SUMMER OF 1993 WHERE FIREFIGHTERS ARE BEING ATTACKED AND GANGS ARE ASSAULTING GIRLS IN PUBLIC SWIMMING POOLS COULD HARDLY PROVIDE AN APTER MODEL IF ONLY DAVID DINKINS THE HESITANT TOBEORNOTTOBE DUKE OF NEW YORK BEHAVED MORE LIKE VIENNA'S DECISIVE VINCENTIO LIKE THIS PRODUCTION OF MEASURE FOR MEASURE TERRENCE MCNALLY'S NEW PLAY A PERFECT GANESH WORKS BEST AS COMEDY TO STEAL A LIE FROM THE PLAY NO A GANESH IS NOT A JEWISH FOOD IT'S A MISCHIEVOUS INDIAN GOD WITH THE HEAD OF AN ELEPHANT SO WHAT IS GANESH DOING IN A PLAY ABOUT THE FRIENDSHIP BETWEEN TWO CONNECTICUT MATRONS THE LADIES YOU SEE ARE ON A TRIP TO INDIA WHERE LIKE EM FORSTER'S MRS MOORE IN A PASSAGE TO INDIA THEY ARE ALSO ON A SPIRITUAL JOURNEY KATHERINE ZOE CALDWELL HAS RECENTLY LOST A SON TO AIDS AND MARGARET FRANCES STERNHAGEN HAS CANCER AND AN UNFAITHFUL HUSBAND NEITHER CAN SHAKE HER SORROW GANESH IS WATCHING OVER THE TWO WOMEN AND KEEPS POPPING UP WHEREVER THEY GO COMMENTING ON THEIR PROGRESS AND EXPLAINING THEIR HISTORIES HE TRANSFORMS HIMSELF INTO A LEPER AND HOTEL MAID AND A JAPANESE TOURIST BUT WHATEVER THE ROLE HE DOESN'T CHANGE HIS ESSENTIAL PERSONALITYTHAT OF AN EXCITABLE FUSSBUDGET WITH A HEART OF GOLD DOMINIC CUSKERN IS ENCHANTING AS GANESH IN ALL HIS CHARMING MANIFESTATIONS BUT MR MCNALLY'S PLAY ALAS ISN'T ABOUT GANESH IT'S ABOUT TWO SAD EMBITTERED WOMEN WHO GO TO INDIA AND RETURN HOME STILL SAD AND EMBITTERED THEIR SPIRITUAL JOURNEY AND OUR THEATRICAL ONEDOESN'T GO VERY FAR WHEN GANESH IS ONSTAGE THE PLAY SPARKLES WHEN HE'S OFF IN THE WINGS IT'S AS HEAVY AND AS GRAY AS WELL AN OVERBURDENED INDIAN ELEPHANT 9307200052 930720 BUSINESS BRIEF AFFILIATED PUBLICATIONS INC AD GAINS AT BOSTON GLOBE HELP BOOST 2NDQUARTER NET AFFILIATED PUBLICATIONS INC SAID THAT LOCAL ADVERTISING GAINS AT ITS BOSTON GLOBE UNIT HELPED BOOST PROFIT AND REVENUE FOR THE SECOND QUARTER NET INCOME ROSE 48 TO 99 MILLION OR 14 CENTS A SHARE FROM A YEAR EARLIER 67 MILLION OR NINE CENTS A SHARE WHEN A ONETIME CHARGE FOR VOLUNTARY STAFF REDUCTIONS CUT NET BY THREE CENTS A SHARE REVENUE FOR THE QUARTER ROSE 34 TO 1104 MILLION FROM 1068 MILLION THE GLOBE'S AD REVENUE ROSE 39 WITH RETAIL ADS RISING 95 AND CLASSIFIED RISING 17 HOWEVER NATIONAL ADS FELL 72 AS REPORTED NEW YORK TIMES CO HAS AGREED TO ACQUIRE AFFILIATED FOR ABOUT 105 BILLION IN CASH AND STOCK IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AFFILIATED SHARES WERE QUOTED AT 14 UNCHANGED 9307200051 930720 WHO'S NEWS FORD CHOOSES TELNACK FOR NEW DESIGN POST DEARBORN MICH FORD MOTOR CO SAID IT CONSOLIDATED ITS WORLDWIDE DESIGN ACTIVITIES UNDER ONE UMBRELLA AND NAMED JACK J TELNACK VICE PRESIDENT OF DESIGN STAFF TO RUN THE NEW OPERATION MR TELNACK 55 YEARS OLD SAID THE CONSOLIDATED OPERATIONS WILL ALLOW FOR GLOBALLY COORDINATED DESIGN EFFORTS AND IMPROVED EFFICIENCIES DESIGN TEAMS FOR US CAR US TRUCK EUROPE AND ASIAPACIFIC WILL REPORT TO MR TELNACK BEFORE NOW ALL AUTOMOTIVE DESIGN EFFORTS OPERATED INDEPENDENTLY AND SHARED LITTLE INFORMATION 9307200050 930720 WHO'S NEWS KENMORE WILL LEAVE INSURANCE AUTO POSTS TO FOCUS ON EQUIVEST NORTH HOLLYWOOD CALIF INSURANCE AUTO AUCTIONS INC SAID ROBERT H KENMORE 63 YEARS OLD RESIGNED AS CHAIRMAN AND A DIRECTOR TO DEVOTE MORE TIME TO EQUIVEST PARTNERS INC A CLOSELY HELD MERCHANT BANKING FIRM OF WHICH HE IS PRESIDENT HE IS SUCCEEDED BY BRADLEY S SCOTT 44 WHO REMAINS CHIEF EXECUTIVE OFFICER OF THIS SELLER OF AUTOMOTIVE SALVAGE BOB F SPENCE 45 VICE CHAIRMAN ASSUMED MR SCOTT'S ROLE AS PRESIDENT AND ALSO ASSUMED THE TITLE OF CHIEF OPERATING OFFICER ALONG WITH MR KENMORE'S RESIGNATION HIS WIFE AYSE M KENMORE 52 ALSO RESIGNED FROM THE BOARD REDUCING MEMBERSHIP TO FIVE SEPARATELY INSURANCE AUTO SAID IT PLANS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 900000 COMMON SHARES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY INSURANCE AUTO SHARES CLOSED AT 28875 DOWN 75 CENTS 9307200049 930720 SCHLUMBERGER'S APPLICON UNIT ANN ARBOR MICH APPLICON INC ANNOUNCED AN EXCLUSIVE AGREEMENT WITH A JAPANESE DISTRIBUTOR TO SELL AND SERVICE APPLICON'S MECHANICALDESIGN SOFTWARE AND SERVICES IN JAPAN APPLICON A UNIT OF NEW YORKBASED SCHLUMBERGER LTD SAID THE AGREEMENT WITH RIKEI CORP WAS PART OF A STRATEGY TO INCREASE SALES OF APPLICON'S BRAVO SOFTWARE THROUGH INDIRECT SALES CHANNELS USING DISTRIBUTORS RIKEI SPECIALIZES IN SUPPLYING INSTALLING AND MAINTAINING ENGINEERING AND COMPUTER SYSTEMS 9307200048 930720 BUSINESS BRIEF CHRISCRAFT INDUSTRIES INC EARNINGS MORE THAN TRIPLED TV STATION BUSINESS CITED CHRISCRAFT INDUSTRIES INC SAID SECONDQUARTER NET INCOME MORE THAN TRIPLED TO 625 MILLION OR 229 A SHARE FROM 173 MILLION OR 63 CENTS A SHARE A YEAR AGO REFLECTING THE SALE OF STOCK HOLDINGS AND THE IMPROVED PERFORMANCE OF ITS CORE TELEVISION STATION BUSINESS THE COMPANY SAID THE INCREASE PRIMARILY REFLECTS A 1213 MILLION GAIN ON THE DISPOSITION BY BHC COMMUNICATIONS INC CHRISCRAFT'S 70 OWNED TELEVISION BROADCASTING SUBSIDIARY OF BHC'S REMAINING HOLDINGS IN TIME WARNER INC CONVERTIBLE PREFERRED STOCK REVENUE ROSE 59 TO 1203 MILLION FROM 758 MILLION THE COMPANY SAID OPERATING REVENUE AT ITS EIGHTSTATION TELEVISION DIVISION ROSE 63 REFLECTING REVENUE OF NEW YORK STATION WWORTV ACQUIRED IN AUGUST 1992 AND NOT INCLUDED IN CORRESPONDING 1992 RESULTS THE COMPANY ALSO REPORTED A 6 INCREASE IN THE REVENUES OF THE SEVEN OTHER STATIONS AND A 4 REDUCTION IN PROGRAMMING EXPENSES 9307200047 930720 BUSINESS BRIEF MAYBELLINE INC TALKS ARE AIMED AT BUYING UNIT OF OLD BOND STREET MAYBELLINE INC MEMPHIS TENN SAID IT IS IN TALKS WITH OLD BOND STREET LTD TO ACQUIRE LONDONBASED YARDLEY GROUP A PRODUCER OF UPSCALE MASSMARKET COSMETICS AND SKINCARE PRODUCTS MAYBELLINE WHICH HAS MARKETED YARDLEY OF LONDON PRODUCTS IN THE US SINCE 1991 SEEKS TO ACQUIRE THE YARDLEY BRAND NAME OUTSIDE NORTH AMERICA AND OTHER YARDLEY CONSUMER BRANDS IN EUROPE NEW YORK INVESTMENT BANKING CONCERN WASSERSTEIN PERELLA GROUP INC CONTROLS ALL OF OLD BOND STREET'S SHARES AND 70 OF MAYBELLINE'S WHICH THE FIRM TOOK PUBLIC IN DECEMBER RANDALL WEISENBURGER DIRECTOR OF MERCHANT BANKING AT WASSERSTEIN PERELLA DESCRIBED THE TALKS AS VERY PRELIMINARY PRICES HAVEN'T BEEN SET BUT HE NOTED THAT YARDLEY'S ANNUAL SALES AVERAGE 80 MILLION POUNDS OR ABOUT 1188 MILLION A COMMITTEE OF MAYBELLINE'S OUTSIDE DIRECTORS HAS BEEN ESTABLISHED TO CONSIDER A POSSIBLE TRANSACTION THE COMPANY SAID THE TALKS WOULD BE PREDICATED ON STRUCTURING AN ACQUISITION THAT WOULDN'T DILUTE MAYBELLINE'S EARNINGS 9307200046 930720 INTERNATIONAL AUSTRALIAN PRICE INDEX FALLS SYDNEY A PRICE INDEX OF AUSTRALIA'S FARM AND MINERAL EXPORT COMMODITIES FELL 05 LAST WEEK IN TERMS OF AUSTRALIAN DOLLARS US DOLLARS AND SPECIAL DRAWING RIGHTS THE INDEX IS COMPILED BY COMMONWEALTH BANK OF AUSTRALIA OVER THE PAST 12 MONTHS THE INDEX HAS DECLINED 29 IN TERMS OF SPECIAL DRAWING RIGHTS AND DROPPED 77 IN US DOLLARS BUT IT HAS GAINED 06 IN AUSTRALIAN DOLLARS BECAUSE OF THE LOCAL CURRENCY'S WEAKNESS PRICES RECEIVED FOR EXPORT COMMODITIES INFLUENCE THE AUSTRALIAN DOLLAR'S MARKET TREND 9307200045 930720 BUSINESS BRIEF QUALCOMM INC FIRM POSTS QUARTERLY PROFIT FOLLOWING YEAREARLIER LOSS QUALCOMM INC POSTED NET INCOME FOR THE THIRD QUARTER ENDED JUNE 27 OF 61 MILLION OR 25 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 607000 OR THREE CENTS A SHARE REVENUE JUMPED 81 TO 491 MILLION FROM 271 MILLION THE RESULTS SENT THE STOCK OF QUALCOMM WHICH IS INVOLVED IN DIGITAL WIRELESS COMMUNICATIONS TECHNOLOGIES UP 350 TO 6350 IN OVERTHECOUNTER TRADING THE SAN DIEGO COMPANY ATTRIBUTED THE SHARP REVENUE RISE PRIMARILY TO AN 81 RISE IN SALES OF ITS OMNITRACS COMMUNICATION TERMINALS FOR THE NINE MONTHS QUALCOMM HAD NET INCOME OF 48 MILLION OR 20 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 35 MILLION OR 18 CENTS A SHARE REVENUE INCREASED 48 TO 116 MILLION FROM 785 MILLION 9307200044 930720 CANADIAN STORE SALES ARE OFF OTTAWA CANADIAN DEPARTMENT STORE SALES TOTALED 998 MILLION CANADIAN DOLLARS US7808 MILLION IN JUNE A 13 DECLINE FROM A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID JUNE WAS THE THIRD CONSECUTIVE MONTH IN WHICH DEPARTMENT SALES DECLINED FROM THEIR YEAREARLIER LEVEL 9307200043 930720 DELTA'S SHUTTLE PROMOTION ATLANTA DELTA AIR LINES IN A MOVE THAT UNDERSCORES THE LIGHT TRAFFIC AND HEAVY COMPETITION IN ITS INDUSTRY INTRODUCED A PROMOTION ALLOWING WEEKEND PASSENGERS ON ITS EAST COAST SHUTTLE FLIGHTS TO TAKE COMPANIONS ALONG FREE THROUGH LABOR DAY SEPT 6 THE AIRLINE SAID THE OFFER IS FOR PASSENGERS WHO BUY A TICKET FOR THE DELTA SHUTTLE WHICH FLIES BETWEEN NEW YORK AND BOSTON AND NEW YORK AND WASHINGTON DC THE TICKETS MUST BE PURCHASED BY AUG 3 AND THE TRAVEL MUST BE ON A SATURDAY OR SUNDAY DELTA SAID THAT TO BE ELIGIBLE FOR THE BONUS TICKETS PASSENGERS MUST BUY AN UNRESTRICTED WEEKEND FARE CURRENTLY 144 ROUNDTRIP 9307200042 930720 BUSINESS BRIEF PRUDENTIAL INSURANCE CO OF AMERICA SUIT ON LIMITED PARTNERSHIP SEEKS CLASS ACTION STATUS PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA FACES ANOTHER LAWSUIT RELATED TO ITS LIMITED PARTNERSHIPS A SUIT FILED YESTERDAY IN ARIZONA SUPERIOR COUNT IN MARICOPA COUNTY SEEKS STATUS AS A CLASS ACTION ON BEHALF OF ALL INVESTORS IN THE 100 MILLION PRUDENTIAL BACHE/EQUITEC REAL ESTATE PARTNERSHIP SOLD IN 1985 AND 1986 THE PARTNERSHIPS WERE SOLD TO FUND THE PURCHASE AND MANAGEMENT OF SIX OFFICE BUILDINGS IN SIX DIFFERENT STATES ACCORDING TO MICHAEL AGUIRRE ONE OF THE ATTORNEYS WHO FILED THE SUIT MORE THAN 7500 INVESTORS ARE INVOLVED MR AGUIRRE ADDED MR AGUIRRE SAID HIS FIRM PREVIOUSLY FILED SIX OTHER CLASS ACTIONS INVOLVING OTHER PRUDENTIAL LIMITED PARTNERSHIPS ALL SETTLED OUT OF COURT PRUDENTIAL OFFICIALS COULDN'T BE REACHED FOR COMMENT 9307200041 930720 BUSINESS BRIEF VLSI TECHNOLOGY INC NET OF 3 MILLION IS POSTED IN SECOND PERIOD VS A LOSS VLSI TECHNOLOGY INC SAN JOSE CALIF SAID NEW PRODUCTS BETTER MARGINS AND HEAVY BOOKING PROPELLED A RETURN TO PROFITABILITY IN THE SECOND QUARTER ENDED JUNE 26 NET INCOME OF 3 MILLION OR NINE CENTS A SHARE COMPARES WITH A LOSS OF 4 MILLION OR 15 CENTS A SHARE POSTED A YEAR EARLIER THE SEMICONDUCTOR MAKER SUFFERED FOUR STRAIGHT QUARTERS OF LOSSES QUARTERLY REVENUE GREW A RECORD 23 TO 128 MILLION FROM 1041 MILLION GROSS MARGINS ROSE BY ABOUT SIX PERCENTAGE POINTS TO 38 FROM THE YEAREARLIER PERIOD ALFRED J STEIN CHAIRMAN AND CHIEF EXECUTIVE SAID GROWTH WAS GOOD ACROSS ALL REGIONS AND SEGMENTS ESPECIALLY PERSONAL COMPUTING AND COMMUNICATIONS HE SAID THE RESULTS WERE DRIVEN BY HEAVY WORLDWIDE DEMAND FOR CHIPS WE'RE REALLY VERY OPTIMISTIC HE SAID CITING A LARGE BACKLOG OF ORDERS 9307200040 930720 TECHNOLOGY CRAY RESEARCH GETS ORDER EAGAN MINN CRAY RESEARCH INC SAID ELECTRICITE DE FRANCE AN ELECTRIC UTILITY IN CLAMART FRANCE ORDERED A CRAY C98 SUPERCOMPUTER THE MODEL'S PRICE STARTS AT 12 MILLION IN THE US 9307200039 930720 BUSINESS BRIEF VALHI INC UNIT WON'T SELL SENIOR NOTES AFTER GETTING CREDIT FACILITY VALHI INC DALLAS SAID ITS VALCOR INC UNIT CHANGED ITS NAME TO MEDITE CORP AND WITHDREW A REGISTRATION STATEMENT FOR 125 MILLION IN SENIOR NOTES AFTER REACHING A DEFINITIVE AGREEMENT ON A 90 MILLION CREDIT FACILITY WITH US NATIONAL BANK OF OREGON IN ADDITION VALHI SAID IT CALLED FOR EARLY REDEMPTION OF 853 MILLION PRINCIPAL AMOUNT OF ITS 135 MILLION OUTSTANDING 12 1/2 SENIOR SUBORDINATED NOTES THE NOTES DUE FEB 15 1998 WILL BE CALLED SEPT 3 VALHI SAID IT WILL LOOK FOR WAYS TO REDEEM THE REST OF THE NOTES EARLY VALHI SAID IT DECIDED THE NEW CREDIT ARRANGEMENT WAS A MORE ATTRACTIVE ALTERNATIVE TO OFFERING NOTES MEDITE DISTRIBUTED ITS FAST FOOD BUSINESS AND ITS HARDWARE DIVISION TO VALHI ITS BANK CREDIT AGREEMENT COMPRISING A 75 MILLION TERM LOAN AND A 15 MILLION REVOLVING LINE OF CREDIT ALSO ALLOWS THE UNIT TO USE 60 MILLION OF THE TERM LOAN TO PAY DIVIDENDS TO VALHI 9307200038 930720 INTERNATIONAL SWEDISH BANKRUPTCIES DROP STOCKHOLM BANKRUPTCIES IN SWEDEN AMONG BUSINESSES AND INDIVIDUALS FELL 24 IN THE FIRST HALF OF 1993 FROM A YEAR EARLIER ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY TOTAL BANKRUPTCIES DROPPED TO 10980 FROM 11249 A YEAR EARLIER BUSINESS BANKRUPTCIES FELL 18 TO 10405 WHILE PRIVATE BANKRUPTCIES FELL 12 TO 575 9307200037 930720 BUSINESS BRIEF MARRIOTT CORP EXCHANGE DEAL IS LAUNCHED AS PART OF RESTRUCTURING MARRIOTT CORP BETHESDA MD LAUNCHED ITS EXCHANGE OFFER THAT WOULD LEAVE HOLDERS OF ABOUT 15 BILLION IN COMPANY BONDS WITH STOCK AND BONDS IN A NEW HIGHLY LEVERAGED REAL ESTATE COMPANY SOME BONDHOLDER GROUPS OPPOSED THE PLAN PART OF A RESTRUCTURING THAT WILL SPLIT THE HOTEL AND REAL ESTATE CORPORATION INTO TWO COMPANIES ONE A HIGHGROWTH HOTEL MANAGEMENT CONCERN AND THE OTHER A MORE SPECULATIVE REAL ESTATE COMPANY THAT WILL RETAIN NEARLY ALL OF MARRIOTT'S DEBT BONDHOLDERS HAVE THE OPTION TO SWAP THEIR MARRIOTT SENIOR NOTES AND DEBENTURES FOR NEW NOTES AFTER MAKING THE SWAP THEY WILL ULTIMATELY RECEIVE STOCK IN BOTH COMPANIES ONCE THE SPLIT TAKES PLACE AS WELL AS CASH IN SOME INSTANCES THE COMPANY SAID IT WOULD NOT COMPLETE THE EXCHANGE UNLESS AT LEAST 51 OF THE PRINCIPAL AMOUNT OF EACH BOND SERIES AND 85 OF ALL SERIES ARE OFFERED THE EXCHANGE IS ALSO CONTINGENT ON MARRIOTT SHAREHOLDERS' VOTING IN FAVOR OF THE PLAN TO SPLIT THE COMPANY AT ITS ANNUAL MEETING ON FRIDAY APPROVAL IS EXPECTED IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MARRIOTT WAS QUOTED AT 2750 UP 25 CENTS 9307200036 930720 INTERNATIONAL SWEDISH JOBLESS RATE UP STOCKHOLM THE OFFICIAL SWEDISH UNEMPLOYMENT RATE JUMPED TO 9 OF THE WORK FORCE IN JUNE FROM 75 IN MAY AND FROM 57 IN JUNE 1992 ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY SOME OF THE INCREASE IN THE JOBLESS RATE IS ATTRIBUTABLE TO THE SUSPENSION OF CERTAIN GOVERNMENT JOB PROGRAMS FOR YOUNG PEOPLE OVER THE SUMMER ACCORDING TO AN ECONOMIST WITH A STOCKHOLM BANK 9307200035 930720 BUSINESS BRIEF CYRIX CORP CHIP COMPANY'S PROSPECTUS SHOWS FOURFOLD RISE IN NET CYRIX CORP IN A SHAREHOLDER PROSPECTUS REPORTED A FOURFOLD INCREASE IN SECONDQUARTER NET INCOME CITING RECORD QUARTERLY SALES AND NEW ROYALTY REVENUES CYRIX WHOSE SHARES BEGAN TRADING PUBLICLY FRIDAY SAID IN A PRELIMINARY INCOME STATEMENT THAT IT HAD RECORD NET INCOME OF 722 MILLION OR 42 CENTS A SHARE COMPARED WITH 175 MILLION OR THE EQUIVALENT OF 10 CENTS A SHARE A YEAR EARLIER SALES MORE THAN DOUBLED TO 321 MILLION FROM 15 MILLION A YEAR EARLIER CYRIX SAID THE JUMP IN NET INCOME WAS DUE MAINLY TO A BIG INCREASE IN SALES OF MICROPROCESSORS IT INTRODUCED LAST YEAR THOSE CHIPS ARE COMPATIBLE WITH INTEL CORP'S PERSONALCOMPUTER MICROPROCESSORS THE RICHARDSON TEXAS CHIP COMPANY ALSO REPORTED ROYALTY REVENUE OF 267 MILLION IN THE QUARTER FROM TEXAS INSTRUMENTS INC DALLAS WHICH IS LICENSED TO PRODUCE CHIPS DESIGNED BY CYRIX CYRIX'S STOCK WHICH WAS INITIALLY OFFERED AT 16 CLOSED ITS SECOND DAY OF TRADING YESTERDAY AT 1950 DOWN 125 IN NATIONAL OVERTHECOUNTER TRADING 9307200034 930720 BIG BOARD PROFIT ESTIMATE NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT EXPECTS TO REPORT RECORD EARNINGS IN THE FIRST HALF THANKS TO BUSY MARKETS AND A PARADE OF COMPANIES LISTING NEW SHARES ON THE EXCHANGE THE BIG BOARD SAID IT EXPECTS TO POST EARNINGS OF ABOUT 33 MILLION FOR THE FIRST SIX MONTHS OF THIS YEAR UP FROM 286 MILLION IN THE SAME PERIOD A YEAR AGO FINAL RESULTS WILL BE REPORTED LATER THIS MONTH 9307200033 930720 MARKETING BRIEF NOTED PAYTV RIGHTS NEW LINE CINEMA CORP GRANTED EXCLUSIVE PAYTV RIGHTS TO ITS TITLES OVER THE NEXT FOUR YEARS TO ENCORE MEDIA CORP A UNIT OF LIBERTY MEDIA CORP THE LICENSING AGREEMENT VALUED BY NEW LINE AT MORE THAN 150 MILLION IS EXPECTED TO COVER AT LEAST 60 NEW LINE FILMS TO BE RELEASED THEATRICALLY DURING THE FOURYEAR PERIOD BEGINNING JAN 1 1994 SALE EW SCRIPPS CO AGREED TO SELL ITS MEMPHIS TELEVISION AND TWO RADIO STATIONS TO ELLIS COMMUNICATIONS INC A CLOSELY HELD ATLANTA CONCERN FOR 65 MILLION EW SCRIPPS THE 86 OWNER OF SCRIPPS HOWARD BROADCASTING SAID IT WILL USE THE PROCEEDS TO REINVEST IN SIMILAR BUSINESSES ELLIS IS A NEW CONCERN CAPITALIZED WITH A 50 MILLION EQUITY INVESTMENT BY NEW YORK'S KELSO & CO IT PLANS TO BUY EIGHT TO 12 TELEVISION OR RADIO STATIONS 9307200032 930720 COLLAGEN SEES OPERATING PROFIT PALO ALTO CALIF COLLAGEN CORP SAID IT EXPECTS TO POST AN OPERATING PROFIT FOR ITS FISCAL FOURTH QUARTER WHICH ENDED JUNE 30 THE BIOTECHNOLOGY COMPANY REFUSED TO SAY WHETHER IT WOULD POST A NET LOSS FOR THE QUARTER OR THE YEAR FOR THE YEAREARLIER QUARTER COLLAGEN REPORTED A LOSS OF 2 MILLION OR 20 CENTS A SHARE ON REVENUE OF 189 MILLION THE COMPANY SAID THE RETURN TO OPERATING PROFITABILITY WAS DRIVEN BY STOCK ORDERS FOR CONTIGEN BARD COLLAGEN IMPLANT AN INJECTABLE SUBSTANCE USED TO TREAT URINARY PROBLEMS THAT IS STILL AWAITING FOOD AND DRUG ADMINISTRATION APPROVAL 9307200031 930720 BUSINESS BRIEF RHONEPOULENC RORER INC DRUG MAKER SAYS EARNINGS CLIMBED 36 IN 2ND PERIOD RHONEPOULENC RORER INC SAID SECONDQUARTER NET INCOME CLIMBED 36 DUE TO SALES GROWTH AND CONTINUED IMPROVEMENTS IN GROSS MARGINS AND LOWER INTEREST EXPENSES THE COLLEGEVILLE PA DRUG MAKER SAID NET INCOME TOTALED 1196 MILLION OR 87 CENTS A SHARE COMPARED WITH 867 MILLION OR 63 CENTS A SHARE A YEAR EARLIER RESULTS FOR THE LATEST PERIOD INCLUDED THE EFFECT OF A 772 MILLION CHARGE FOR CERTAIN RESTRUCTURING AND LITIGATION EXPENSES AS WELL AS PROCEEDS FROM A 105 MILLION SETTLEMENT IN A PATENT LAWSUIT THE NET EFFECT OF THESE ITEMS RESULTED IN AFTERTAX PROFIT OF 146 MILLION OR 11 CENTS A SHARE SALES IN THE QUARTER ROSE 38 TO 101 BILLION DRIVEN MAINLY BY THE COMPANY'S US PRESCRIPTION BUSINESS ITS US NONPRESCRIPTION BUSINESS ROSE 15 FROM A YEAR EARLIER SALES IN GERMANY AND ITALY CONTINUED TO BE DEPRESSED 9307200030 930720 STARBUCKS COFFEE'S PROFIT DOUBLES SEATTLE STARBUCKS COFFEE CO SAID STRONG SAMESTORE SALES AND GOOD GROWTH IN NEW OUTLETS DOUBLED FISCAL THIRDQUARTER NET INCOME TO 18 MILLION OR 12 CENTS A SHARE FROM 900000 OR SEVEN CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDED JUNE 27 THE COFFEE ROASTER AND RETAILER SAID REVENUE JUMPED 73 TO 406 MILLION FROM 235 MILLION A YEAR EARLIER 9307200029 930720 BUSINESS BRIEF WR GRACE & CO CHARGE OF 105 MILLION SET AGAINST 2NDQUARTER RESULTS WR GRACE & CO SAID IT WOULD REPORT A CHARGE FOR THE SECOND QUARTER OF ABOUT 105 MILLION OR 116 A SHARE TO REFLECT RECLASSIFYING ITS NONCORE BUSINESSES AS DISCONTINUED OPERATIONS BUT THE BOCA RATON FLA SPECIALTY CHEMICAL AND HEALTHCARE SERVICES COMPANY SAID THAT OPERATING PROFIT IN THE QUARTER WOULD BE ROUGHLY FLAT WITH THE YEAREARLIER PERIOD THAT IS IN LINE WITH WALL STREET EXPECTATIONS IN LAST YEAR'S SECOND QUARTER GRACE REPORTED PROFIT FROM CONTINUING OPERATIONS OF 641 MILLION OR 72 CENTS A SHARE GRACE EXPECTS TO REPORT SECONDQUARTER RESULTS ON JULY 29 THE NONSTRATEGIC BUSINESSES THAT WILL BE CLASSIFIED AS DISCONTINUED BUSINESSES INCLUDE COCOA AND CERTAIN SPECIALTY CHEMICAL PRODUCT LINES INCLUDING PRINTING PRODUCTS ENGINEERED MATERIALS AND ELECTROMAGNETIC RADIATION CONTROL GRACE STOCK ROSE 75 CENTS OR 19 TO CLOSE AT 41 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9307200028 930720 INTERNATIONAL WESTERN GERMAN PRICES WIESBADEN GERMANY PRODUCER PRICES IN WESTERN GERMANY WERE UNCHANGED IN JUNE FROM MAY AND EASED 04 FROM JUNE 1992 JUNE'S PRODUCER PRICE INDEX REPORT WAS LARGELY IN LINE WITH PREVAILING EXPECTATIONS IN MAY THE INDEX DECLINED 02 FROM A MONTH EARLIER AND HAD A 03 DROP FROM THE YEAREARLIER MONTH 9307200027 930720 OWENS & MINOR REACHES PACT RICHMOND VA HOSPITALSUPPLY DISTRIBUTOR OWENS & MINOR INC SAID IT AGREED TO BE THE PRIME SUPPLIER TO DETROIT MEDICAL CENTER IN A FIVEYEAR AGREEMENT VALUED AT AS MUCH AS 225 MILLION THE AGREEMENT WITH DETROIT MEDICAL IS TO SUPPLY MEDICAL AND SURGICAL PRODUCTS AND FIRSTYEAR PURCHASES ARE ESTIMATED TO BE 25 MILLION THE HOSPITAL GROUP OPERATES SEVEN DETROITAREA HOSPITALS AS WELL AS A NUMBER OF REGIONAL CLINICS AND IS AFFILIATED WITH WAYNE STATE UNIVERSITY SCHOOL OF MEDICINE SEPARATELY OWENS & MINOR SAID SECONDQUARTER NET INCOME ROSE TO 43 MILLION OR 21 CENTS A SHARE FROM 487000 OR TWO CENTS A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER'S NET INCLUDES A ONETIME 31 MILLION CHARGE AGAINST EARNINGS FOR DISCONTINUED OPERATIONS SALES ROSE 18 TO 3412 MILLION FROM 2897 MILLION 9307200026 930720 RALSTON PURINA PLANS PURCHASE ST LOUIS RALSTON PURINA CO SAID IT AGREED TO BUY THE OATS PROCESSING AND PACKAGING AND CEREAL MAKING OPERATIONS OF NATIONAL OATS CO A DIVISION OF CURTICE BURNS FOODS INC TERMS WEREN'T GIVEN RALSTON A FOOD AND ANIMALFEED CONCERN SAID NET SALES FOR THE BUSINESS WAS 57 MILLION IN FISCAL 1993 9307200025 930720 BUSINESS BRIEF ALCO STANDARD CORP SHARE OFFERING POSTPONED RECENT PRICE SLUMP IS CITED ALCO STANDARD CORP POSTPONED AN OFFERING OF FOUR MILLION SHARES CITING UNCERTAINTY BECAUSE OF A RECENT SLUMP IN ITS STOCK PRICE AND WEAK PAPER PRICES THE VALLEY FORGE PA DISTRIBUTOR OF PAPER AND OFFICE MACHINES SAID IT EXPECTS TO RESUME ITS OFFERING IN EARLY NOVEMBER AFTER IT REPORTS ITS RESULTS FOR THE YEAR ENDING SEPT 30 LAST WEEK THE COMPANY SAID THIRDQUARTER OPERATING PROFIT WOULD BE 4 TO 5 LOWER BECAUSE OF ALCO'S DELAY IN PUTTING THROUGH PAPERPRICE INCREASES FROM SUPPLIERS THE COMPANY'S SHARES WHICH HAD CLOSED AT 4875 THE DAY BEFORE THE ANNOUNCEMENT FELL 10 TO 44 THE COMPANY HAD SAID IT WOULD USE THE PROCEEDS OF THE OFFERING TO PAY DOWN DEBT RELATED TO CERTAIN ACQUISITIONS ALCO'S SHARES CLOSED AT 44 UP 50 CENTS OR 11 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9307200024 930720 BUSINESS BRIEF REVLON INC CONCERN TO BUY ALMAY LINE FROM SARA LEE'S UK UNIT REVLON INC SAID IT REACHED AN AGREEMENT WITH SARA LEE CORP TO BUY SARA LEE'S ALMAY UNIT IN THE UNITED KINGDOM THE ACQUISITION COMPLETES REVLON'S WORLDWIDE OWNERSHIP OF ALMAY THE COSMETIC CONCERN SAID TERMS OF THE AGREEMENT WEREN'T DISCLOSED REVLON'S ALMAY LINE IS CREDITED WITH CREATING THE MARKET FOR HYPOALLERGENIC COSMETICS ALMAY HAD SALES OF MORE THAN 110 MILLION LAST YEAR ACCORDING TO COSMETIC INDUSTRY ESTIMATES THE BULK OF THE ALMAY'S SALES ARE IN THE US JERRY W LEVIN PRESIDENT AND CHIEF EXECUTIVE OF REVLON SAID THE COMPANY WOULD DEVOTE SIGNIFICANT RESOURCES TO MAKING ALMAY A GLOBAL BRAND REVLON IS CONTROLLED BY NEW YORK INVESTOR RONALD PERELMAN 9307200023 930720 GATEWAY FINANCIAL ASSET SALE NORWALK CONN GATEWAY FINANCIAL CORP SAID IT SOLD A POOL OF 103 MILLION IN NONPERFORMING ASSETS TO BERKELEY FEDERAL BANK & TRUST WEST PALM BEACH FLA FOR ABOUT 75 MILLION THE BANK HOLDING COMPANY SAID THE SALE WAS PART OF A RESTRUCTURING EFFORT THAT WILL RAISE THE COMPANY'S CAPITAL RATIO TO 575 BY MARCH 1994 AS PART OF ITS RESTRUCTURING GATEWAY PLANS TO SELL ABOUT 60 MILLION IN NONPERFORMING ASSETS AND RAISE 25 MILLION THROUGH A RIGHTS OFFERING WHICH EXPIRES FRIDAY 9307200022 930720 BUSINESS BRIEF BAKER FENTRESS & CO RIGHTS OFFERING AUTHORIZED BY CLOSEDEND FUND'S BOARD BAKER FENTRESS & CO SAID ITS BOARD AUTHORIZED AN OFFERING UNDER WHICH SHAREHOLDERS MAY PURCHASE ONE NEW SHARE FOR EACH FIVE OWNED THE CLOSEDEND FUND SAID THE PRICE IS EXPECTED TO BE SET AT 10 BELOW MARKET IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BAKER WAS UNCHANGED AT 18125 IN ADDITION SHAREHOLDERS OF RECORD WHO SUBSCRIBE TO ALL THE SHARES TO WHICH THEY ARE ENTITLED WILL BE PERMITTED TO SUBSCRIBE TO ADDITIONAL SHARES NOT CLAIMED IN THE PRIMARY SUBSCRIPTION BAKER SAID ITS BOARD SET SEPT 28 AS THE RECORD DATE WITH THE SUBSCRIPTION PERIOD BEGINNING AS SOON AS PRACTICABLE AND ENDING 30 DAYS LATER THE CHICAGOBASED COMPANY HAS 202 MILLION SHARES OUTSTANDING 9307200021 930720 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH HIGHER RATES ARE PROPOSED TO OFFSET INCREASES IN COSTS AMERICAN TELEPHONE & TELEGRAPH CO FILED RATE INCREASES IT SAID WOULD BOOST BUSINESS SERVICES AN AVERAGE OF 39 THE CHANGES WOULD AFFECT MOST INTERSTATE DOMESTIC AND INTERNATIONAL LONG DISTANCE SERVICES 800 SERVICES AND DATA COMMUNICATIONS SERVICES ROBERT B MORRIS III TELECOMMUNICATIONS ANALYST AT GOLDMAN SACHS & CO SAID NEW YORKBASED AT&T WANTED TO OFFSET MORE THAN 600 MILLION IN INCREASED COSTS THESE HE SAID INCLUDE 314 MILLION IN ADDITIONAL ACCESS CHARGES FROM LOCAL PHONE COMPANIES AT&T ALSO SPENT 100 MILLION UPGRADING ITS NETWORK FOR THIS NEW COMPETITION AND RETIREMENT ACCOUNTING EXPENSES WILL ADD 200 MILLION TO AT&T'S ANNUAL EXPENSES HE SAID AT&T CONFIRMED THESE NUMBERS THE INCREASES FILED WITH THE FEDERAL COMMUNICATIONS COMMISSION WOULD TAKE EFFECT AUG 1 IF APPROVED RATES ON DIRECTDIALED CONSUMER CALLS FROM THE US TO 56 COUNTRIES WOULD RISE AN AVERAGE OF 38 WHILE CHARGES ON CALLS TO THE US FROM 27 COUNTRIES USING AT&T USADIRECT SERVICE WOULD INCREASE AN AVERAGE OF 15 9307200020 930720 DANA CORP BOOSTS HOLDING TOLEDO OHIO DANA CORP AN AUTO PARTS SUPPLIER SAID IT INCREASED ITS STAKE IN SPICER SA AN AUTO PARTS MAKER IN MEXICO TO 49 FROM 33 TERMS WEREN'T DISCLOSED DANA SAID PARTNER SOCIEDAD DE FOMENTO INDUSTRIAL SA A MEXICAN CONGLOMERATE RETAINS A 51 INTEREST IN SPICER 9307200019 930720 BUSINESS BRIEF CBT CORP AGREEMENT SIGNED TO BUY PENNYRILE BANCSHARES INC CBT CORP PADUCAH KY SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE PENNYRILE BANCSHARES INC HOPKINSVILLE KY IN A STOCK SWAP UNDER THE AGREEMENT PENNYRILE SHAREHOLDERS WILL RECEIVE 16658 SHARES OF CBT COMMON STOCK FOR EACH SHARE OF PENNYRILE COMMON STOCK THE BANK HOLDING COMPANY SAID PENNYRILE IS THE HOLDING COMPANY FOR PENNYRILE CITIZENS BANK & TRUST CO A STATECHARTERED COMMERCIAL BANK WITH ASSETS VALUED AT 47 MILLION ONCE THE ACQUISITION IS COMPLETED PENNYRILE WILL BECOME A WHOLLY OWNED SUBSIDIARY OF CBT CBT ALSO SAID IT ACQUIRED OPTIONS TO BUY CERTAIN SHARES OF PENNYRILE STOCK COMPLETION OF THE TRANSACTION IS SUBJECT TO REGULATORY AND PENNYRILESHAREHOLDER APPROVAL CBT WITH ASSETS CURRENTLY VALUED AT 495 MILLION SAID IT EXPECTS TO COMPLETE THE ACQUISITION IN THE FOURTH QUARTER OF 1993 9307200018 930720 BUSINESS BRIEF PLUM CREEK TIMBER CO LP COMPANY AGREES TO BUY TIMBERLAND FROM CHAMPION PLUM CREEK TIMBER CO LP SAID IT HAS SIGNED A LETTER OF INTENT TO BUY 867000 ACRES OF MONTANA TIMBERLAND FROM CHAMPION INTERNATIONAL CORP FOR ABOUT 260 MILLION PLUM A SEATTLE FOREST PRODUCT COMPANY SAID THE PURCHASE WILL REDUCE ITS RELIANCE ON LOGGING ON PUBLIC LANDS WHICH INCREASINGLY IS BEING RESTRICTED THE PLAN TO SELL THE TIMBERLAND IS SUBJECT TO THE SIMULTANEOUS SALE OF CHAMPION'S MANUFACTURING FACILITIES IN MONTANA TO STIMSON LUMBER CO PORTLAND ORE TERMS OF THAT TRANSACTION WERE NOT DISCLOSED BOTH TRANSACTIONS ARE SUBJECT TO A NUMBER OF CONDITIONS INCLUDING THE EXECUTION OF DEFINITIVE AGREEMENTS CHAMPION A STAMFORD CONN PAPER COMPANY OWNS OR CONTROLS FIVE MILLION ACRES OF US TIMBERLAND AND IS ALSO A MAJOR MANUFACTURER OF PLYWOOD AND LUMBER 9307200017 930720 PEOPLE PATTERNS BY ALAN L OTTEN ELDERLY COUPLES IN THE US ARE THE BEST OFF OF ANY IN THE WESTERN WORLD AGED SINGLE AMERICAN WOMEN FARE ALMOST THE WORST SO SAYS A REPORT FROM THE LUXEMBOURG INCOME STUDY A GROUP OF ACADEMICS AND GOVERNMENT STATISTICIANS FROM A DOZEN INDUSTRIALIZED COUNTRIES TRYING TO DEVELOP VALID CROSSNATIONAL COMPARISONS OF KEY ECONOMIC CONDITIONS THE STUDY IS HEADED BY SYRACUSE UNIVERSITY ECONOMIST TIMOTHY SMEEDING THIS REPORT COMPARED THE US AND SEVEN OTHER COUNTRIES AUSTRALIA BRITAIN CANADA FRANCE GERMANY THE NETHERLANDS AND SWEDEN IN THE MID1980S THE GROUP FOUND US MARRIED COUPLES 65 AND OVER WERE ON AVERAGE BY FAR THE MOST AFFLUENT RELATIVE TO THEIR COUNTRYMEN WITH A MEDIAN INCOME ALMOST 10 ABOVE THE US FAMILY MEDIAN MEDIAN INCOME OF OLDER COUPLES IN THE OTHER COUNTRIES RANGED FROM 3 ABOVE THE NATIONAL FAMILY MEDIAN IN GERMANY TO 30 BELOW IN AUSTRALIA OLDER SINGLE WOMEN GENERALLY ARE WORSE OFF ON AVERAGE THAN AGED COUPLES BUT IN THE US THEY DO WORSE THAN IN ANY OF THE OTHER COUNTRIES EXCEPT AUSTRALIA THE GROUP SAYS BY THE MID1980S THE MEDIAN INCOME OF AGED SINGLE AMERICAN WOMEN WAS ALMOST 40 BELOW THE NATIONAL FAMILY MEDIAN WHILE IN OTHER COUNTRIES IT VARIED FROM 14 BELOW IN FRANCE TO 44 BELOW IN AUSTRALIA OVERALL THE ANALYSIS STATES THE US HAD BY FAR THE HIGHEST PROPORTION OF OLD PEOPLE WITH INCOMES BELOW POVERTY LEVEL 12 IN THE MID1980S INCOME INEQUALITY THE GAP BETWEEN THE TOP AND BOTTOM GROUPS WAS FOUND TO BE GREATER AMONG OLD PEOPLE IN AMERICA THAN ELSEWHERE AND THE US WAS THE ONLY NATION WHERE INCOME INEQUALITY INCREASED IN THE EARLY 1980S DR SMEEDING AND HIS COLLEAGUES SAY THE REASON FOR THE ECONOMIC EXTREMES AMONG OLDER AMERICANS IS THAT THEY TEND TO HAVE LESS OF THEIR RETIREMENT INCOME TIED TO GOVERNMENTGUARANTEED MINIMUM BENEFITS AND MORE TIED TO PRERETIREMENT EARNINGS THAN THE ELDERLY ELSEWHERE YOUNG ADULTS SHOW DEEP SCARS FROM PARENTAL DIVORCE OR SEPARATION AN ANALYSIS AFFIRMS THOUGH MANY PEOPLE TAKE THIS FOR GRANTED SEVERAL ACADEMIC AND OTHER STUDIES HAVE ASSERTED THAT THE PROBLEM IS OVERSTATED GIVEN THE HUMAN CAPACITY TO RECUPERATE FROM STRESS CHILD TRENDS A WASHINGTON NONPROFIT RESEARCH FIRM ANALYZED THE EXPERIENCES OF 1143 CHILDREN WHO WERE SEVEN TO 11 YEARS OLD WHEN FIRST INTERVIEWED IN 1976 THEY WERE REINTERVIEWED IN 1981 AND AGAIN IN 1987 BY WHICH TIME THEY WERE 18 TO 22 LARGE NUMBERS OF THEIR PARENTS AND TEACHERS WERE ALSO SURVEYED THE ANALYSTS COMPARED 240 YOUNG ADULTS WHO HAD EXPERIENCED PARENTAL SEPARATION OR DIVORCE BEFORE THEY WERE 16 WITH THE REMAINING CHILDREN WHO AS OF 1981 WERE IN INTACT FAMILIES AMONG THE 18 TO 22YEAROLDS FROM DISRUPTED FAMILIES TWOTHIRDS HAD POOR RELATIONSHIPS WITH THEIR FATHERS AND 30 WITH THEIR MOTHERS ONEQUARTER HAD DROPPED OUT OF HIGH SCHOOL FOR SOME TIME ONEFIFTH CURRENTLY EXHIBITED SERIOUS BEHAVIORAL PROBLEMS AND 40 HAD REQUIRED SOME PSYCHOLOGICAL HELP CONTROLLING FOR RACE AND SOCIOECONOMIC DIFFERENCES THE YOUNG PEOPLE FROM THE DISRUPTED FAMILIES WERE ROUGHLY TWICE AS LIKELY TO HAVE HAD THESE PROBLEMS AS THEIR PEERS FROM INTACT FAMILIES MANY OF THE YOUNG MEN AND WOMEN FROM DISRUPTED FAMILIES ESPECIALLY THE YOUNG WOMEN HAD POOR RELATIONS WITH THEIR MOTHERS AS YOUNG ADULTS EVEN THOUGH THEY HAD SHOWN NO SUCH SIGNS AS ADOLESCENTS THOSE WITH POOR RELATIONSHIPS WITH THEIR FATHERS BY CONTRAST HAD ALREADY HAD THEM IN ADOLESCENCE YOUNG PEOPLE EXPERIENCING DIVORCE OR PARENTAL SEPARATION BEFORE AGE SIX HAD POORER RELATIONS WITH THEIR FATHERS THAN THOSE WHO WERE OLDER WHEN THE MARRIAGE BROKE UP WHILE WE SHOULD BE CAREFUL NOT TO EXAGGERATE THE RISKS THAT PARENTAL DIVORCE POSES TO THE YOUNG PEOPLE INVOLVED NEITHER SHOULD WE MINIMIZE THOSE RISKS RESEARCHER NICHOLAS ZILL SAYS OVERCROWDING INCREASED IN THE 1980S FOR THE FIRST TIME IN A HALFCENTURY A STUDY BY UNIVERSITY OF SOUTHERN CALIFORNIA DEMOGRAPHERS NOTES THAT IN THE FIRST HOUSING CENSUS IN 1940 JUST OVER 20 OF ALL HOUSING UNITS MET THE TRADITIONAL DEFINITION OF OVERCROWDED MORE THAN ONE RESIDENT PER ROOM FROM THEN ON THE RATE FELL STEADILY TO 115 BY 1960 AND 45 IN 1980 DURING THE '80S HOWEVER THE TREND REVERSED AND THE RATE ROSE TO 5 IN 1990 MOREOVER THE RISE WAS CONCENTRATED IN SEVERE OVERCROWDING MORE THAN 15 PEOPLE PER ROOM THE INCREASE IN BOTH MODERATE 101 TO 150 AND SEVERE OVERCROWDING CAME ENTIRELY IN RENTEROCCUPIED UNITS WHERE TOTAL OVERCROWDING ROSE TO ALMOST 9 OF UNITS FROM 7 IN 1980 OVERCROWDING IN OWNEROCCUPIED UNITS FELL SLIGHTLY RESEARCHER DOWELL MYERS SUGGESTS SEVERAL POSSIBLE EXPLANATIONS INCLUDING THE RISE IN POVERTY DURING THE 1980S AND HIGHER HOUSING COSTS HE CITES ANOTHER CONTRIBUTING FACTOR THE BIG RISE IN HISPANIC AND ASIAN RESIDENTS ESPECIALLY RECENT IMMIGRANTS THESE INDIVIDUALS HE NOTES COME FROM CLOSECONTACT SOCIETIES THAT PREFER LIVING IN LARGE FAMILY GROUPS IN ADDITION NEWLY ARRIVED IMMIGRANTS OFTEN DOUBLE UP WITH RELATIVES OR FRIENDS THE GEOGRAPHIC DISTRIBUTION OF OVERCROWDED RENTAL UNITS SUPPORT THESE EXPLANATIONS CALIFORNIA AND NEW YORK WITH HIGH HOUSING COSTS BUT ALSO LARGE IMMIGRANT POPULATIONS WERE THE TWO STATES WITH THE GREATEST INCREASE IN OVERCROWDING MOSTLY IN THE SEVERE CATEGORY BETTEREDUCATED HUSBANDS ARE MORE LIKELY TO TAKE ON BASIC HOUSEHOLD TASKS INCLUDING TRADITIONALLY FEMALE TASKS ACCORDING TO UNIVERSITY OF MARYLAND DEMOGRAPHER HARRIET PRESSER THE NATION'S NURSINGHOME POPULATION ROSE 24 TO NEARLY 18 MILLION IN 1990 FROM A DECADE EARLIER THE CENSUS BUREAU REPORTS OF THESE NEARLY 16 MILLION WERE 65 OR OLDER EVERY STATE HAD SOME INCREASE 9307200016 930720 ABREAST OF THE MARKET STOCKS ARE MIXED AS TECHNOLOGIES DROP AMID WORRY OVER EARNINGS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED AS TECHNOLOGY ISSUES TOOK IT ON THE CHIN FOR THE THIRD STRAIGHT SESSION THE DOW JONES INDUSTRIAL AVERAGE GAINED 699 POINTS TO 353528 STANDARD & POOR'S 500STOCK INDEX EDGED UP 028 POINT TO 44603 BUT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 012 TO 24733 DECLINING ISSUES TOPPED ADVANCING ISSUES 1070 TO 852 VOLUME ON THE BIG BOARD TOTALED 215850000 SHARES DOWN FROM 262290000 FRIDAY THE MARKET SEEMS TO BE VERY MUCH ORIENTED TOWARD NEWS ON INDIVIDUAL COMPANIES SAID DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY STOCKS OPENED MIXED BUT DRIFTED LOWER DURING THE MORNING AS RISING INTEREST RATES AND WEAKNESS IN TECHNOLOGY AND DRUG STOCKS SOURED INVESTOR SENTIMENT AS INTEREST RATES INCHED BACK DOWN EARLY IN THE AFTERNOON THE INDUSTRIAL AVERAGE STARTED TO STABILIZE BUT EVEN THOUGH THE BROAD MARKET MEASURES MOVED LITTLE DURING THE DAY SEVERAL INDIVIDUAL STOCKS WERE EITHER BOOSTED OR PUMMELED BY INVESTORS TRAVELERS CORP ADVANCED SMARTLY AFTER REPORTING SECONDQUARTER EARNINGS THAT SURPASSED WALL STREET'S EXPECTATIONS SHARES OF THE HARTFORD CONN INSURANCE CONCERN JUMPED 1 3/8 TO 31 3/8 MCDONNELL DOUGLAS ALSO RALLIED ON BETTERTHANEXPECTED QUARTERLY EARNINGS GAINING 3 1/4 TO 75 1/4 BUT TECHNOLOGY STOCKS WHICH WERE HARD HIT LAST WEEK IN THE WAKE OF A DISAPPOINTING REPORT FROM APPLE COMPUTER CONTINUED TO TUMBLE DIGITAL EQUIPMENT SLID 1 5/8 TO 37 5/8 HEWLETTPACKARD DROPPED 1 1/2 TO 73 3/4 AND MOTOROLA SLUMPED 1 7/8 TO 84 5/8 INTERNATIONAL BUSINESS MACHINES TUMBLED 2 TO 43 5/8 A NEW 52WEEK LOW AS INVESTORS BEGAN TO GROW EDGY ABOUT THE COMPANY'S SECONDQUARTER EARNINGS DUE TO BE REPORTED NEXT WEEK BOTH IBM AND DIGITAL WHICH ARE MAJOR PLAYERS IN EUROPE WILL REPORT EARNINGS THAT ARE LOWER THAN EXPECTED BECAUSE OF THE WEAKNESS IN EUROPE SAID SANJIV HINGORANI WHO FOLLOWS TECHNOLOGY SHARES AT A DIVISION OF NOMURA SECURITIES INTERNATIONAL APPLE'S SHARES TRADED OVER THE COUNTER FELL 1 7/8 TO 25 5/8 IT WAS THE MOSTACTIVE NASDAQ ISSUE OTHER STOCKS ROSE OR FELL ON THE STRENGTH OF EARNINGS REPORTS POPE & TALBOT PLUNGED 2 1/4 TO 22 THE PORTLAND ORE FOREST PRODUCTS COMPANY POSTED PROFIT OF 40 CENTS A SHARE FOR THE SECOND QUARTER REVERSING A YEARAGO LOSS OF 37 CENTS BUT FALLING SHORT OF WALL STREET'S EXPECTATIONS OF EARNINGS OF 51 CENTS A SHARE WHIRLPOOL JUMPED 2 3/4 TO 60 1/2 THE HOUSEHOLD APPLIANCES COMPANY SAID THAT ITS SECONDQUARTER PROFIT SWELLED TO 104 A SHARE FROM 75 CENTS A SHARE A YEAR AGO INLAND STEEL INDUSTRIES ADDED 1 TO 29 1/2 IT REPORTED THAT LOSSES IN THE SECOND QUARTER NARROWED TO 30 CENTS A SHARE FROM 53 CENTS A YEAR AGO JOHNSON CONTROLS ROSE 1 1/2 TO 51 THE COMPANY WHICH MAKES AUTO PARTS SAID THIRDQUARTER PROFIT GREW TO 98 CENTS A SHARE FROM 86 CENTS A YEAR AGO FREEPORTMCMORAN CLIMBED 1 5/8 TO 18 5/8 SHEARSON LEHMAN BROTHERS RAISED ITS RATING ON THE STOCK TO OUTPERFORM FROM NEUTRAL MERCK FELL 1 TO 32 1/8 DROPPING TO A NEW 52WEEK LOW SHARES OF THE RAHWAY NJ DRUG CONCERN HAVE BEEN DEPRESSED FOLLOWING NEWS LAST WEEK THAT ITS PRESIDENT RICHARD J MARKHAM HAD RESIGNED HE HAD BEEN VIEWED AS HEIRAPPARENT TO CHAIRMAN P ROY VAGELOS LOUISIANA LAND & EXPLORATION SURGED 3 3/8 TO 45 1/2 THE COMPANY SIGNED AN AGREEMENT WITH NERCO TO BUY NERCO OIL & GAS FOR 3537 MILLION H LEIGHTON STEWARD CHAIRMAN OF LOUISIANA LAND SAID NERCO'S PROPERTIES ARE EXPECTED TO GENERATE STRONG EARNINGS AND CASH FLOW VF CORP PLUMMETED 2 TO 43 3/4 THE COMPANY COMMENTING ON THE DROP IN ITS SHARES SAID THAT SECONDQUARTER EARNINGS WOULD BE AT THE HIGHER END OF ANALYSTS' EXPECTATIONS ESTIMATES RANGE FROM 80 CENTS TO 84 CENTS A SHARE ASKED ABOUT THE 84 CENTSNUMBER LAWRENCE R PUGH CHAIRMAN OF THE APPAREL MAKER SAID THAT CERTAINLY IS IN THE RANGE OF EXPECTED EARNINGS MR PUGH ATTRIBUTED THE DECLINE IN VF'S STOCK TO INVESTOR CONCERN OVER OTHER APPAREL MAKERS' RESULTS VF CORP'S RESULTS WILL BE REPORTED TODAY ON THE AMERICAN STOCK EXCHANGE ANDREA ELECTRONICS' SHARES GAINED 1 5/8 TO 38 1/4 THE COMPANY WHOSE STOCK'S WILD SWINGS HAVE ATTRACTED CONSIDERABLE ATTENTION RECENTLY REPORTED THAT IT EARNED 15 CENTS A SHARE IN THE SECOND QUARTER AFTER LOSING TWO CENTS A SHARE A YEAR AGO EBEN SHAPIRO CONTRIBUTED TO THIS ARTICLE 9307200014 930720 INTERNATIONAL CHINA'S ECONOMY GROWS FEVERISHLY AND INFLATION SOARS BY JESSE WONG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG EVEN AS CHINA TRIES TO REIN IN INFLATION AND RUNAWAY GROWTH IN INVESTMENT STATISTICS SHOW THAT THE COUNTRY'S ECONOMY GREW AT A FEVERISH PACE OF NEARLY 14 IN THE FIRST HALF THE FIGURES RELEASED MONDAY BY THE STATE STATISTICS BUREAU ALSO SHOW A SIZABLE TRADE DEFICIT SOARING PRICES AND A WIDENING INCOME GAP BETWEEN URBAN AND RURAL POPULATIONS MEASURED ON A YEARTOYEAR BASIS INFLATION ACCELERATED TO 216 IN LARGE CITIES IN JUNE AFTER AVERAGING 174 THROUGH THE FIRST HALF GROSS DOMESTIC PRODUCT THE COUNTRY'S TOTAL VALUE OF GOODS AND SERVICES PRODUCED GREW AT A 139 ANNUAL RATE IN THE HALF THAT PACE IS FASTER THAN THE 128 RATE FOR ALL OF 1992 AND NEARLY DOUBLE THAT FOR 1991 WHEN CHINA WAS JUST EMERGING FROM AUSTERITY BECAUSE BEIJING SLAMMED THE BRAKES ON THE ECONOMY ONLY THIS MONTH THE FIRSTHALF FIGURES OFFER NO CLUES ON THE EFFECTIVENESS OF THIS SLOWDOWN POLICY WHAT THE STATISTICS DO SHOW SOME HONG KONG ECONOMISTS SAY IS THAT TOUGH ACTION IS JUSTIFIED AND FOR NOW THEIR BET IS THAT BEIJING HAS THE CLOUT TO RESTORE ECONOMIC ORDER THOUGH THE HARSHEST MEASURES SUCH AS A CREDIT SQUEEZE COULD INFLICT CONSIDERABLE PAIN THE TIGHTENING PROGRAM WILL OFFER CHINA THE SORT OF BREATHING ROOM IT NEEDS TO SORT OUT THE CHAOS SAID BENJAMIN CHAN HEAD OF ECONOMIC RESEARCH AT BANK OF EAST ASIA DIANE YOWELL AN ECONOMIST WITH HONGKONG & SHANGHAI BANKING CORP SAYS THE TOUGH CREDIT SQUEEZE SHOULD BE SUFFICIENT TO SLOW THE ECONOMY DOWN THE CURRENT TURMOIL IS TO SOME EXTENT A BYPRODUCT OF CHINA'S YOYO APPROACH TO LIBERALIZING ITS CENTRALLY PLANNED ECONOMY HAVING SEEN THE COUNTRY THROUGH A PERIOD OF AUSTERITY CHINESE LEADER DENG XIAOPING CALLED EARLY LAST YEAR FOR REFORM TO MOVE FULL STEAM AHEAD THAT UNLEASHED AMONG OTHER THINGS STOCK AND PROPERTY SPECULATION WITH BANKS AND INDIVIDUALS ALIKE PLOWING CASH INTO INFLATED ASSETS THE BANKING SYSTEM IS RUNNING OUT OF FUNDS ONLY IN LATE JUNE DID BEIJING IMPLICITLY ACKNOWLEDGE THE LOOMING CRISIS BY FIRING ITS CENTRAL BANK GOVERNOR LI GUIXIAN WITH ZHU RONGJI A HARDNOSED VICE PREMIER ASSUMING MR LI'S DUTIES AS WELL AS BROAD RESPONSIBILITY OVER THE ECONOMY THE COUNTRY SINCE HAS EMBARKED ON A PROGRAM AIMED LARGELY AT SQUEEZING THE PROPERTY MARKET AND REDIRECTING RESOURCES TOWARD INDUSTRY AND AGRICULTURE 9307200013 930720 HEARD ON THE STREET BIG HOLDERS CHECK OUT OF HOTEL CONCERN BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL WALL STREET HAS BEEN ENJOYING ITS STAY WITH HOSPITALITY FRANCHISE SYSTEMS WHOSE STOCK PRICE HAS MORE THAN DOUBLED DURING ITS SEVEN MONTHS AS A PUBLIC COMPANY BUT SINCE SOME BIG HOLDERS SOLD CHUNKS OF THEIR HOLDINGS IN A STOCK OFFERING LAST MONTH IS IT TIME FOR OTHER INVESTORS TO CHECK OUT BASED IN PARSIPPANY NJ HOSPITALITY GREW INTO THE WORLD'S LARGEST FRANCHISOR OF HOTELS BY BUYING FRANCHISE SYSTEMS ADDING SUPER 8 IN APRIL TO DAYS INN HOWARD JOHNSON AND RAMADA THE STREET'S ENTHUSIASM FOR THE COMPANY'S BUSINESS OF COLLECTING FRANCHISE FEES HAS PROPELLED THE STOCK TO 34 1/2 OR 26 TIMES THIS YEAR'S EXPECTED EARNINGS COMPARED WITH A MARKET MULTIPLE OF 16 THE STOCK MARKET NOW VALUES HOSPITALITY AT 852 MILLION ROUGHLY 3 1/2 TIMES HOSPITALITY'S REVENUE FROM ROYALTIES AND MARKETING FEES PAID BY ALL FOUR CHAINS LAST YEAR THIS IS AN ABOVEAVERAGE STOCK SAYS PETER OAKES OF MERRILL LYNCH WHICH UNDERWROTE HOSPITALITY'S STOCK OFFERINGS AND OWNS A TOKEN AMOUNT OF THE SHARES A MAJOR ATTRACTION IS THAT PROFIT IS EXPECTED TO JUMP TO 132 A FULLY DILUTED SHARE THIS YEAR UP FROM 83 CENTS IN 1992 BEFORE THE COMPANY ACQUIRED SUPER 8 ACCORDING TO FIRST CALL A SERVICE THAT TRACKS ANALYST ESTIMATES IN ITS IPO HOSPITALITY SOLD LESS THAN ONEFOURTH THE 247 MILLION SHARES CURRENTLY OUTSTANDING MOST OF THE IPO WAS SOLD TO A SCORE OF LARGE MUTUAL FUNDS WHICH HELD ON SO TIGHT THAT SOME DAYS FEWER THAN 1000 SHARES TRADED OF THIS NEW YORK STOCK EXCHANGE ISSUE WE WERE NOT ABLE TO BUY A FULL POSITION AT THE PRICE WE WANTED SAID CHARLES LEEDS A PRINCIPAL AT OMEGA ADVISORS WHICH ACCUMULATED 100000 SHARES BEFORE SELLING THIS SPRING WE WERE OUT THERE BIDDING BUT THE STOCK WENT VERY FAR VERY FAST THE SURGE IN STOCK PRICE SET THE STAGE FOR BLACKSTONE CAPITAL PARTNERS THE CONTROLLING SHAREHOLDER AFFILIATED WITH A SIMILARLY NAMED MERCHANT BANKING FIRM TO SELL 40 OF ITS STAKE IN THE JUNE OFFERING FOR THREE TIMES ITS COST BLACKSTONE REAPED A 108 MILLION PROFIT ON THE SALE OF FIVE MILLION SHARES THE FIRM COLLECTED BANKING AND MONITORING FEES OF 14 MILLION OVER THE PAST THREE YEARS COMPANY FILINGS SHOW SELLING BY A BIG HOLDER OFTEN IS DEEMED AN OMINOUS SIGN FOR AN IPO ESPECIALLY AFTER A BIG RUNUP THAT'S A WARNING SIGNAL SAYS ROBERT NATALE OF STANDARD & POOR'S BUT BLACKSTONE SAYS IT'S SIMPLY FOLLOWING ITS PARTNERSHIP STRATEGY BY SELLING SOME SHARES AT A LARGE PROFIT AND NOTES THAT IT STILL HOLDS EIGHT MILLION SHARES AS OFTEN HAPPENS WITH NEW STOCKS THE ONLY RESEARCH COMES FROM ANALYSTS WITH WALL STREET FIRMS THAT UNDERWROTE THE COMPANY'S INITIAL OR FOLLOWUP OFFERINGS OF STOCK WHICH HOSPITALITY COMPLETED JUNE 29 ALL THREE ANALYSTS WHO FOLLOW HOSPITALITY RECOMMEND THE STOCK DEMAND FOR HOSPITALITY STOCK HAS BEEN SO GREAT THAT THE PRICE ROSE MORE THAN 3 FOLLOWING THE LATE JUNE OFFERING AT 32 A SHARE BUT WILL CURRENT INVESTORS DO AS WELL AS THE ORIGINAL TEAM MAYBE NOT TO HEAR COMPETITORS AND CUSTOMERS DESCRIBE THE CHANGING COURSE OF THE HOTEL INDUSTRY DESPITE A SLIGHT RECOVERY IN OCCUPANCY RATES THE HOTEL INDUSTRY IS STILL IN THE DOLDRUMS PERHAPS HALF THE HOTELS DON'T MAKE MONEY ACCORDING TO INDUSTRY ESTIMATES AS MANY AS 20 OF HOTELS ARE HELD INVOLUNTARILY BY BANKS OR INSURANCE COMPANIES THAT REPOSSESSED PROPERTIES RESULT TWOTHIRDS OF THE ROOMS NATIONWIDE HAVE RUSHED TO JOIN CHAINS DRIVEN BY THE PROMISE OF A BOOST IN OCCUPANCY FROM THE CHAINS' NATIONAL RESERVATION SYSTEMS IN EXCHANGE THE HOTELS PAY A ROYALTY FEE AND MARKETING AND RESERVATION EXPENSES WHICH TOGETHER CAN TOTAL ROUGHLY 8 OF ROOM REVENUE THAT MEANS HOSPITALITY MAKES MONEY EVEN THOUGH THE HOTELS IT FRANCHISES HAD AN AVERAGE OCCUPANCY OF 56 LAST YEAR BUT TO GROW HOSPITALITY MUST KEEP ADDING ROOMS RATHER THAN BUILD HOSPITALITY HAS BEEN GROWING BY OFFERING INDEPENDENT HOTEL OWNERS THE LURE OF A NATIONAL RESERVATION SYSTEM AND BY ENTICING HOTELS WITHIN OTHER FRANCHISE SYSTEMS TO SWITCH FLAGS A PROCESS CALLED CONVERSION NO EASY TASK ITS MAIN COMPETITOR THE CHOICE HOTELS SUBSIDIARY OF MANOR CARE RECENTLY OPTED TO ADD HOTELS ABROAD WHERE PRESIDENT GERALD PETITT SAYS PROSPECTS ARE BETTER SO FAR HOSPITALITY HAS CONTINUED TO GROW AT A BREAKNECK PACE ADDING 19000 ROOMS IN THE FIRST HALF ALMOST TWICE THE GROWTH RATE FOR ALL OF 1992 THEY ARE THE MOST AGGRESSIVE AT BUILDING THEIR GROUP OF CHAINS SAID JOHN RIJOS PRESIDENT OF LANE HOSPITALITY WHICH MANAGES 30 HOTELS INCLUDING SIX RAMADAS BUT THAT AGGRESSIVENESS SAY RIVALS HAS A COST HOSPITALITY IS ADDING SMALLER PROPERTIES MOST OF LOWSERVICE BUDGET QUALITY ACCORDING TO AN ANALYSIS BY THE AMERICAN AUTOMOBILE ASSOCIATION WHICH INSPECTS HOTELS FOR ITS GUIDEBOOKS THE AVERAGE SIZE OF A HOTEL FLYING THE DAYS INN FLAG FOR EXAMPLE HAS SHRUNK TO 103 ROOMS FROM 117 ROOMS IN 1990 ACCORDING TO DOCUMENTS FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION ALSO WHEN IT COMES TO SPRUCING UP PROPERTIES HOSPITALITY ENTICES NEW FRANCHISEES BY MANDATING A MUCH LOWER LEVEL OF OUTLAYS THAN MANY RIVALS BUT THE LESS ANY HOTEL OR MOTEL SPENDS THE GREATER THE CHANCE QUALITY WILL DECLINE OVER TIME WE ARE GETTING MORE APPLICATIONS FROM HOSPITALITY HOTELS THAN WE ARE LOSING TO THEIR BRANDS SAID MICHAEL LEVIN PRESIDENT OF THE AMERICAS DIVISION OF HOLIDAY INNS SO FAR THIS YEAR HOLIDAY INN HAS RECEIVED 38 APPLICATIONS AND LOST 25 HOTELS TO HOSPITALITY MR LEVIN SAID THE BIGGEST CHANGE IN THE HOTEL INDUSTRY THE BRUTAL RACE TO CONVERT HOTELS IS TAKING ITS TOLL IN THE STRUCTURE OF FRANCHISE AGREEMENTS FRANCHISE AGREEMENTS USED TO LAST 20 YEARS NOW THE PRESSURE TO CONVERT IS SUCH THAT HOTEL OWNERS CAN EXTRACT FROM FRANCHISORS 10YEAR AGREEMENTS WITH WINDOWS FOR DROPPING THE FRANCHISE WITHOUT PENALTY TYPICALLY AFTER THREE FIVE AND SEVEN YEARS VISTA HOST IN HOUSTON FOR EXAMPLE CONVERTED 19 OF THE 46 HOTELS IT MANAGES AND SECURED NEW AGREEMENTS THAT ALLOW AN EXIT WITHIN THE FIRST TWO YEARS IF THE FRANCHISORS FAIL TO DELIVER ENOUGH RESERVATIONS HOLIDAY INN RECENTLY GAINED A HOTEL THAT HAD BEEN A SHERATON MARRIOTT AND RADISSON WITHIN AN 18MONTH PERIOD ACCORDING TO MR LEVIN SUCH FLAGSWITCHING ALSO MAKES IT HARDER FOR FRANCHISORS TO PASS ALONG ROYALTY RATE BOOSTS FRANCHISE AGREEMENTS ARE THE BIGGEST ASSET ON HOSPITALITY'S BALANCE SHEET FULLY 70 OF THE COMPANY'S ASSETS HOSPITALITY WRITES OFF ITS FRANCHISE AGREEMENTS MORE SLOWLY THAN THE CONTRACTS ACTUALLY EXPIRE BASED ON AN INTERNAL RENEWAL ASSUMPTION ALTHOUGH THIS PROTRACTED WRITEOFF METHOD IS COMMONLY ACCEPTED AMONG FRANCHISORS RIVAL COMPANIES CLAIM HOSPITALITY IS LESS CONSERVATIVE IN ITS RENEWAL ASSUMPTIONS A PRACTICE THEY SAY COULD COME BACK TO HAUNT HOSPITALITY IF ITS RENEWAL ASSUMPTIONS DON'T HOLD UP THE COMPANY IS WRITING OFF OVER 30 YEARS SOME 400 MILLION REPRESENTING DAYS INN HOWARD JOHNSON AND RAMADA FRANCHISES THOUGH HALF OF THOSE CONTRACTS EXPIRE WITHIN 10 YEARS IT IS WRITING OFF 121 MILLION OF FRANCHISE AGREEMENTS ASSOCIATED WITH THE ACQUISITION OF SUPER 8 A RELATIVELY NEW BRAND OVER 40 YEARS SUCH WRITEOFFS ARE KNOWN AS DEPRECIATION A GRADUAL EXPENSING OF THE REPLACEMENT COST OF AN ASSET CHOICE BY CONTRAST WRITES OFF ITS FRANCHISE AGREEMENTS OVER PERIODS OF 22 TO 30 YEARS OR LESS THAN TWO TIMES THE AVERAGE REMAINING CONTRACT LIFE ACCORDING TO A SENIOR EXECUTIVE WITH CHOICE A SLOWER WRITEOFF PERIOD BOLSTERS EARNINGS CUTTING ANNUAL EXPENSES BY 8 MILLION OR SO COMPARED WITH WHAT HOSPITALITY MIGHT SHOW IF IT WERE USING A 22YEAR PACE THAT MAY NOT SOUND LIKE A LOT BUT IT COULD BE WORTH PERHAPS 20 CENTS A SHARE ANNUALLY GOING FORWARD HOSPITALITY AND ITS ACCOUNTING FIRM DELOITTE & TOUCHE PRESENTED THE SEC WITH AN INDUSTRY STUDY JUSTIFYING ITS ACCOUNTING TREATMENT WHEREUPON THE SEC CLEARED THE COMPANY'S IPO TO PROCEED IN AN INTERVIEW HENRY R SILVERMAN HOSPITALITY'S CHAIRMAN DECLINED TO COMMENT ON THE RECORD ABOUT HIS COMPANY'S PROSPECTS OR ACCOUNTING BUT THE CHIEF FINANCIAL OFFICER STEPHEN P HOLMES SAID IN A STATEMENT THAT THE FRANCHISE AGREEMENTS ARE BEING WRITTEN OFF ACCORDING TO ACCEPTED ACCOUNTING RULES 9307200012 930720 REVIEW & OUTLOOK EDITORIAL JAPAN INC RESTRUCTURES AFTER LAST MONTH'S POLITICAL EARTHQUAKE IN TOKYO SUNDAY'S ELECTION RESULTS MAY SEEM LIKE A MILD AFTERSHOCK VOTERS RETURNED DIET INCUMBENTS IN DROVES AND THE RULING LIBERAL DEMOCRATIC PARTY MAY WELL COME BACK TO POWER AS THE DOMINANT MEMBER OF A COALITION CYNICS MIGHT CONCLUDE THAT FOR ALL THE TUMULT IT'S SIMPLY BACK TO BUSINESS AS USUAL FOR JAPAN INC WE DOUBT IT THE LDP INDEED WON THREE TIMES AS MANY SEATS AS ITS CLOSEST CHALLENGER BUT THE STATUS QUO REALLY TOOK A MAJOR HIT IN SUNDAY'S ELECTION THE LDP LOST ITS MAJORITY AND 52 SEATS THE LONGTIME CHIEF OPPOSITION THE SOCIAL DEMOCRATIC PARTY LOST 64 SEATS THE THREE NEW SELFPROCLAIMED REFORM PARTIES PICKED UP 103 SEATS WHAT THIS ELECTION WILL BE REMEMBERED FOR IS THE EMERGENCE OF A CREDIBLE CHALLENGE TO LDP RULE FROM NOW ON THE LDP WILL NOT BE THE ONLY TEAM ON JAPAN'S POLITICAL PLAYING FIELD FOR THE PAST DECADE OR SO THE JAPANESE HAVE BEEN IN THE CURIOUS POSITION OF HAVING THE POLITICAL OPPOSITION TAKE THE FORM OF VARIOUS JAPANBASHING AMERICAN POLITICIANS THE NOMINAL OPPOSITION THE SOCIALISTS WERE WRAPPED UP IN IRRELEVANT PREOCCUPATIONS SUCH HAS HOW TO IGNORE SOUTH KOREA THIS ELECTION MARKS THE END OF THE SOCIALISTS WHO WILL SOON SPLIT UP THE NEW OPPOSITION LOOKS A LOT LIKE THE LDP OF COURSE THE LEADERS OF THE RENEWAL PARTY THE JAPAN NEW PARTY AND THE SAKIGAKE ALL SPENT YEARS LEARNING THE ROPES AS LOYAL LDP DIETMEN THE DIFFERENCE IS THAT THESE LEADERS AND THEIR PARTIES SAW THE COUNTRY HAD REACHED THE LIMITS OF THE JAPAN INC MODEL AND STAKED THEIR FUTURE ON CHANGING IT THE LDP WHICH HELPED CREATE THE MODEL AND CONTINUED TO BENEFIT FROM ALL THE OOZING POLITICAL MONEY THAT OILED IT WAS INCAPABLE OF REENGINEERING THE SYSTEM THE BEGINNING OF THE LDP'S TROUBLES WE THINK DATES TO 1989 SEVERAL PROMINENT HEADS ROLLED THAT YEAR IN THE RECRUIT SHARESFORFAVORS SCANDAL IT WAS ALSO THE YEAR THAT THE LDP RAILROADED THROUGH THE DIET AN UNPOPULAR 3 CONSUMPTION TAX JAPANESE VOTERS TOOK AWAY THE LDP'S UPPER HOUSE MAJORITY IN THE NEXT ELECTION THE EFFECT HOWEVER WAS THAT JAPANESE VOTERS ENDURING A TROUBLING AND PROLONGED RECESSION WERE TAXED EVEN MORE HEAVILY THAN BEFORE THE CONSUMPTION TAX BUT NO ONE IN JAPANESE POLITICS STOOD FOR THIS CLEARLY EXPRESSED PUBLIC INTEREST THE SOCIALISTS WERE ABSORBED IN SOME OTHER DISTRACTION WHILE THE LDP HINTED NOW AND AGAIN ABOUT THE POSSIBILITY OF A TAX CUT EACH TIME HOWEVER THE PARTY WAS DISSUADED BY THE MINISTRY OF FINANCE WHICH FEARED THAT A TAX CUT WOULD UNBALANCE THE BOOKS BUT HOLD THE APPLAUSE FOR FISCAL RECTITUDE DESPITE THIS SUPPOSED CONCERN FOR FISCAL BALANCE THE DIET IN THE PAST 11 MONTHS HAS PASSED TWO ENORMOUS STIMULUS PACKAGES THAT PUT LOTS OF MONEY INTO THE CONSTRUCTION INDUSTRY WHICH OF COURSE WAS EXPECTED TO KICK BACK A PORTION OF IT TO THE LDP LITTLE WONDER THAT JAPANESE VOTERS AND EVENTUALLY SOME OF THE POLITICIANS GREW INCREASINGLY DISGUSTED WITH JAPAN INC'S POLITICS HERE'S A MODEST PROPOSAL FOR THE NEXT GOVERNMENT WHOEVER IT MAY BE CUT JAPAN'S INCOME TAXES BEYOND DISPLAYING GOOD FAITH IN THE PROMISE OF REFORM LOWERING TAXES ON JAPANESE INCOMES WOULD HELP LIFT THE HEAVY GLOOM THAT HAS DEPRESSED CONSUMER CONFIDENCE IN SHORT IT WOULD AT LAST GIVE JAPAN'S SOPHISTICATED ELECTORATE A CONTROLLING VOICE VIA THE MARKETPLACE IN PICKING THE COUNTRY'S WINNERS AND LOSERS OVER THE NEAR TERM JAPANESE POLITICS IS LIKELY TO BE MESSY AT LEAST COMPARED WITH THE PAST IF THE LDP MANAGES TO PUT TOGETHER A COALITION THE LEADERSHIP WARS WILL BE INTENSE AND THE PARTY WILL STILL HAVE TO COME TO TERMS WITH THE DEMANDS FOR POLITICAL REFORM IT HAS AVOIDED FOR YEARS IF INDEED THE WIDELY DIVERGENT OPPOSITION PARTIES MANAGE TO FORM A GOVERNING COALITION THE EFFECTS ARE MORE PROFOUND THOUGH SUCH A MARRIAGE OF CONVENIENCE MAY NOT LAST BEYOND THE FIRST SPAT AND THE LDP COULD BE COUNTED ON TO USE ITS CLOUT TO FRUSTRATE THE NEW GOVERNMENT EVEN A SHORTLIVED NONLDP GOVERNMENT WOULD DISRUPT THE TIGHT LINKS BETWEEN THE LDP AND JAPAN'S OTHER POWER CENTERS IF THE NEAR FUTURE BECOMES UNPREDICTABLE AND CONFUSING THAT WILL BE ALL RIGHT TIDINESS ALONE IS NOT THE SINE QUA NON OF DEMOCRACY ACCOUNTABILITY MATTERS AND THIS IS SOMETHING THAT JAPAN HAS LACKED SUNDAY'S ELECTION ISN'T THE END OF THE POLITICAL REFORM PROCESS IN JAPAN BUT IT MAY BE THE END OF THE BEGINNING WHICH IS TO SAY THAT JAPAN MAY AGAIN BE WORTH WATCHING FOR ITS DYNAMISM AND POTENTIAL 9307200011 930720 CORPORATE FOCUS FACE LIFT' GIVES SEARS A FRESH LOOK AND BETTER RESULTS FROM ALL APPEARANCES FOCUS ON APPAREL DRAWS ADMIRATION FROM ANALYSTS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL IN FEBRUARY WHEN SEARS ROEBUCK & CO UNVEILED ANOTHER NEW SEARS RENOVATION INITIATIVE SEVERAL ANALYSTS COMPLAINED THE PRESENTATION WAS DEPRESSINGLY SIMILAR TO COUNTLESS OTHER EFFORTS TO LIFT THE RETAILING DIVISION FROM ITS DOLDRUMS BUT THERE SEEMS TO BE A BIG DIFFERENCE THIS TIME THE LATEST TURNAROUND EFFORT IS SUCCEEDING AT LEAST INITIALLY LAST MONTH SEARS POSTED A 12 SALES GAIN IN STORES OPEN AT LEAST A YEAR A RISE THAT BESTED ALL OTHER MAJOR RETAILERS AND COMPANY EXECUTIVES CLAIM JULY IS SHAPING UP TO BE EVEN STRONGER WHAT GIVES AS VETERAN OBSERVERS OF THE NATION'S THIRDLARGEST RETAILER SEE IT THE KEY DIFFERENCE BETWEEN PREVIOUS COSMETIC CHANGES AND TODAY'S FACE LIFT IS ITS ARCHITECT ARTHUR C MARTINEZ AN OUTSIDER BROUGHT IN LESS THAN A YEAR AGO TO BE CHAIRMAN OF SEARS'S MERCHANDISE GROUP THE 53YEAROLD FORMER SAKS FIFTH AVENUE VICE CHAIRMAN HAS UNLEASHED AN AMBITIOUS PROGRAM TO TRANSFORM SEARS INTO A COMPETITIVE MODERATEPRICED DEPARTMENT STORE HE HAS BEEN A BREATH OF FRESH AIR IN A COMPANY THAT DOESN'T GENERALLY HIRE FROM THE OUTSIDE DECLARES WALTER LOEB A RETAIL CONSULTANT AND ANALYST MR MARTINEZ'S FORMULA FOCUSES ON SELLING APPAREL WHERE PROFITS ARE HIGHER WHILE DEFENDING SEARS'S MARKET SHARE IN HARDWARE AND APPLIANCES THE COMPANY HAS EMBARKED ON A 4 BILLION PLAN TO RENOVATE STORES BUILD MORE FREESTANDING HARDWARE STORES AND MOVE FURNITURE INTO SEPARATE EMPORIUMS POSITIVE RESULTS HAVE SENT SOME ANALYSTS SCURRYING TO UPGRADE THEIR SEARS EARNINGS ESTIMATES THESE ANALYSTS EXPECT SEARS TO REPORT SECONDQUARTER EARNINGS THIS WEEK OF BETWEEN 105 AND 115 A SHARE WITH MUCH OF THE IMPROVEMENT REFLECTING BETTER MERCHANDISING RESULTS THAT'S UP FROM ESTIMATES OF 1 A SHARE BY MANY ANALYSTS AT THE START OF THE QUARTER IN LAST YEAR'S SECOND QUARTER SEARS EARNED 3255 MILLION OR 85 CENTS A SHARE FROM CONTINUING OPERATIONS INCLUDING AN ACCOUNTING CHANGE THE INITIAL RESULTS OF SEARS'S STRATEGY ARE PROVING OUT QUITE NICELY SAYS WILLIAM N SMITH A RETAIL ANALYST FOR SMITH BARNEY HARRIS UPHAM MR SMITH RECENTLY INCREASED HIS SECONDQUARTER ESTIMATE FOR SEARS TO 110 FROM AROUND 1 FOR HIS PART MR MARTINEZ SAYS HE BEGAN WITH THREE OBJECTIVES SELL OR CLOSE OPERATIONS THAT WERE UNPROFITABLE OR DIVERGED FROM SEARS'S NEW STRATEGY ASSEMBLE A NEW MANAGEMENT TEAM AND PUT THE NEW MERCHANDISING PLAN TO WORK AT HIS URGING SEARS CLOSED IN MAY ITS 97YEAROLD CATALOG BUSINESS WHICH HAD BEEN LOSING 140 MILLION A YEAR THE COMPANY ALSO SOLD A COMPUTER SERVICES OPERATION AS PART OF SEARS'S OVERALL CORPORATE REALIGNMENT THE COMPANY SOLD ITS COLDWELL BANKER RESIDENTIAL SALES AND MORTGAGE BANKING UNIT THROUGH A PUBLIC OFFERING SEARS ALSO SOLD 20 OF ITS ALLSTATE INSURANCE UNIT AND 20 OF ITS DEAN WITTER BROKERAGE BUSINESS WHICH INCLUDED THE DISCOVER CARD OPERATIONS SEARS THEN SPUN OFF THE REMAINDER OF DEAN WITTER TO ITS SHAREHOLDERS THESE MOVES WERE WELL UNDER WAY BEFORE MR MARTINEZ ARRIVED MANY OF MR MARTINEZ'S CHANGES CAN BE TAKEN AT FACE VALUE IN FACT THERE ARE NEW FACES ON THE COMPANY'S ORGANIZATIONAL CHART FOURTEEN EXECUTIVES IN SEARS'S CORPORATE OFFICE AND ITS MERCHANDISE UNIT ACCEPTED A LUCRATIVE EARLYRETIREMENT PACKAGE EARLIER THIS YEAR THE DEPARTURES INCLUDED LEADERS OF MARKETING RETAIL AUTOMOTIVE AND PUBLIC RELATIONS DEPARTMENTS IN TOTAL 3400 EMPLOYEES TOOK THE EARLYRETIREMENT OFFER I WANTED TO CLEAR THE DECKS MR MARTINEZ SAYS WHAT'S LEFT IS A BLEND OF VETERAN SEARS HANDS WHO LEAD THE HOME GROUP AND INTIMATE APPAREL DIVISION AS WELL AS NEWCOMERS WHO LEAD THE ADVERTISING AND WOMEN'S APPAREL UNITS MR MARTINEZ WHO HAD FINAL SAY OVER WHO WAS ENCOURAGED TO STAY SAYS HE LOOKED AT MANAGERS' ENERGY AND VIBRANCY AS WELL AS THEIR SKILLS I WANT PEOPLE WITH A BIAS TOWARD ACTION HE SAYS PERHAPS THE NEWCOMER WITH THE HIGHEST PROFILE IS ROBERT METTLER FORMERLY CHAIRMAN OF THE ROBINSON'S UNIT OF MAY DEPARTMENT STORES MR METTLER WHO JOINED SEARS IN FEBRUARY HAS TRIED TO SHARPEN THE FOCUS ON APPAREL ALTHOUGH APPAREL ACCOUNTS FOR ONLY 26 OF SEARS'S ANNUAL STORE SALES OF ABOUT 287 BILLION IT BRINGS IN SOME 60 OF THE MERCHANDISE UNIT'S PROFITS THE COMPANY WANTS TO BOOST APPAREL'S SHARE TO ABOUT 40 OF STORE SALES HIGHER APPAREL SALES WOULD LEAD TO GREATER STORE TRAFFIC WHICH COULD TRANSLATE INTO MORE SALES OF HARD GOODS EXECUTIVES SAY ONE OF MR METTLER'S INITIATIVES INVOLVES SHIFTING SHOE SALESPEOPLE ONTO COMMISSION SCHEDULES MR METTLER ALSO SCOTCHED A PLAN TO DEVELOP FREESTANDING STORES THAT WOULD SELL ONLY APPAREL THAT IDEA HE SAYS WAS A THROWBACK TO TRYING TO DO TOO MANY THINGS ANOTHER VISIBLE NEW HIRE JOHN H COSTELLO WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT OF THE MERCHANDISE GROUP'S MARKETING DIVISION MR COSTELLO 45 HAD BEEN PRESIDENT OF NIELSEN MARKETING RESEARCH USA HE WILL PLAY A MAJOR ROLE IN SEARS'S EFFORT TO ENHANCE ITS APPAREL IMAGE AMONG MR MARTINEZ'S PRIORITIES GETTING MORE SALESPEOPLE ON THE FLOOR SEEING THAT STORE RACKS STAY WELLSTOCKED EVEN BEFORE MR MARTINEZ ARRIVED SEARS WAS MOVING TO MAKE MORE ROOM FOR MERCHANDISE DISPLAY AND LESS FOR BACK OFFICES THOSE CHANGES BEGUN IN 1991 HAVE ADDED ABOUT 676000 SQUARE FEET OF SPACE OR ROUGHLY SEVEN FULL STORES EVEN SO PROGRESS CAN STILL BE SLOW THUS FAR ONLY 300 OF SEARS'S 800 STORES HAVE BEEN RENOVATED AND MANY OF THE INITIATIVES HAVEN'T YET TAKEN HOLD MAKING IT UNCLEAR WHETHER SEARS WILL BE SUCCESSFUL AT SELLING FOR EXAMPLE COSMETICS OR FASHIONABLE CLOTHING GERALD HIRSCHBERG WHO RATES THE INVESTMENT GRADE OF SEARS'S CORPORATE DEBT FOR STANDARD & POOR'S CORP SAYS HE CONSIDERED THE BENEFITS OF SEARS'S RESTRUCTURING WHEN THE RATING SERVICE DOWNGRADED THE COMPANY'S DEBT IN MARCH IF WE DIDN'T THINK SEARS WOULD BE IMPROVING THIS YEAR AND NEXT WE WOULD HAVE GONE LOWER IN OUR RATINGS HE SAYS MR HIRSCHBERG NOTING THAT RECENT STRONG SALES GAINS FOR SEARS HAVE PARTLY REFLECTED WEAK YEAREARLIER COMPARISONS SAYS THE RETAILER'S CHALLENGE WILL BE TO IMPROVE UPON STRONG RESULTS OTHERS AREN'T STANDING STILL WAITING FOR SEARS TO CATCH UP HE SAYS NONETHELESS MR MARTINEZ GETS CREDIT FOR MUCH OF THE COMPANY'S RECENT SUCCESS IT'S EVEN HELPED STILL SOME OF THE SNIPING THAT ERUPTED AFTER IT WAS DISCLOSED HE RECEIVED 53 MILLION LAST YEAR IN SALARY BONUS AND STOCK OPTIONS HE IS WORTH IT BECAUSE HE IS PRODUCING SAYS EDWARD JOHNSON OF JOHNSON REDBOOK SERVICES THEY COULD HAVE A SMALLERCONTRACT MAN WHO WOULDN'T PRODUCE 9307200010 930720 FUND CRITICIZES SALOMON IN HIRING OF EXREGULATOR NEW YORK A HEDGE FUND THAT IS SUING SALOMON BROTHERS INC IN CONNECTION WITH THE 1991 TREASURY BOND SCANDAL IS CRYING FOUL OVER THE FIRM'S RECENT HIRING OF A TOP FEDERAL REGULATOR THREE CROWN LP BASED IN SECAUCUS NJ CHARGES THAT IT DISCLOSED INFORMATION MATERIAL TO ITS LAWSUIT AGAINST SALOMON TO WILLIAM HEYMAN FORMER SEC MARKET REGULATION CHIEF AND THEN HE TOOK THE SEC HAT OFF AND PUT HIS SALOMON HAT ON IN THE MIDDLE OF THEIR SUIT SAID THREE CROWN'S ATTORNEY KEN SCHACTER LAST WEDNESDAY SALOMON BROTHERS A UNIT OF SALOMON INC NAMED MR HEYMAN MANAGING DIRECTOR AND HEAD OF ITS PRIVATEINVESTMENT DEPARTMENT ON FRIDAY THREE CROWN ASKED US DISTRICT COURT JUDGE ROBERT PATTERSON TO LOOK INTO WHETHER MR HEYMAN HAS DISCLOSED TO SALOMON ANY INFORMATION THAT THREE CROWN GAVE TO REGULATORS FROM AUGUST 1991 THROUGH APRIL 1992 AS PART OF A FEDERAL INVESTIGATION OF THE FIRM MR HEYMAN REACHED AT HIS NEW OFFICE AT SALOMON'S WORLD TRADE CENTER HEADQUARTERS SAID THESE ARE SENSITIVE MATTERS THAT I HAVEN'T DISCUSSED WITH THE FIRM HE DECLINED TO COMMENT FURTHER 9307200009 930720 EXOFFICIALS OF P&G AND STAR BANC AGREE TO SEC FINES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI A FORMER TOP EXECUTIVE AT PROCTER & GAMBLE CO AND A FORMER STAR BANC CORP OFFICIAL AGREED TO PAY PENALTIES TO SETTLE AN INSIDERTRADING COMPLAINT BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION THE SEC SAID MALCOLM JOZOFF WHO WAS THE HEAD OF P&G'S HEALTHCARE DIVISION GAVE INSIDE INFORMATION TO ELLEN JANE MILLMAN A BUSINESS DEVELOPMENT MANAGER AT STAR BANC DURING P&G'S 1989 PURCHASE OF NOXELL CORP MS MILLMAN BOUGHT 2700 NOXELL SHARES DURING P&G'S TALKS WITH NOXELL BETWEEN MAY AND SEPTEMBER 1989 THE SEC SAID WHEN THE ACQUISITION WAS ANNOUNCED SEPT 22 NOXELL SHARES LEAPED TO 3125 FROM 2125 UNDER THE AGREEMENT MS MILLMAN AGREED TO SURRENDER HER RELATIVELY SMALL PROFITS OF 23178 AND TO PAY A PENALTY OF AN EQUAL AMOUNT MR JOZOFF ALSO AGREED TO PAY THE 23178 PENALTY NEITHER ADMITTED GUILT IN THE SETTLEMENT ALTHOUGH BOTH AGREED THAT THEY WOULDN'T VIOLATE SECURITIES LAWS IN THE FUTURE THE COMPLAINT AND CONSENT AGREEMENT WERE FILED IN US DISTRICT COURT IN CHICAGO MS MILLMAN 50 YEARS OLD LEFT STAR BANC IN SEPTEMBER 1990 A SPOKESMAN SAID HE DIDN'T KNOW THE CIRCUMSTANCES OF HER DEPARTURE SHE COULDN'T BE REACHED AT HER HOME IN CINCINNATI MR JOZOFF 54 YEARS OLD ALSO COULDN'T BE REACHED A HOUSE SITTER AT HIS CINCINNATI HOME SAID HE WAS VACATIONING OUTSIDE THE COUNTRY MR JOZOFF LEFT CINCINNATIBASED P&G IN JUNE 1992 TO PURSUE OTHER INTERESTS THE COMPANY SAID AT THE TIME A SPOKESWOMAN DECLINED TO SAY YESTERDAY WHETHER HIS DEPARTURE WAS RELATED TO INSIDER TRADING ACCUSATIONS ALTHOUGH BOTH P&G AND STAR BANC POINTED OUT THAT THE ALLEGED VIOLATIONS WERE PERSONAL MR JOZOFF WAS A PRIMARY NEGOTIATOR OF P&G'S 13 BILLION PURCHASE OF NOXELL THE SEC SAID MR JOZOFF BREACHED HIS FIDUCIARY DUTY TO P&G BY COMMUNICATING NONPUBLIC INFORMATION TO MS MILLMAN FOR HIS DIRECT OR INDIRECT BENEFIT LAWYERS FOR MR JOZOFF AND MS MILLMAN DIDN'T RESPOND TO REQUESTS FOR COMMENT 9307200007 930720 INTERNATIONAL EUROPEAN BANK TRIO TO HELP CUSTOMERS FROM ACROSS BORDERS LONDON NATIONAL WESTMINSTER BANK PLC OF BRITAIN SOCIETE GENERALE DE FRANCE SA AND COMMERZBANK AG OF GERMANY ANNOUNCED A CROSSBORDER COOPERATION PACT UNDER WHICH THEY WILL PROVIDE BANKING SERVICES FOR EACH OTHER'S SMALLBUSINESS CUSTOMERS ANNOUNCING THE PACT COMMERZBANK CHAIRMAN MARTIN KOHLHAUSSEN SAID HE EXPECTED THAT OTHER EUROPEAN BANKS WOULD JOIN THE INITIATIVE ON A COUNTRYBYCOUNTRY BASIS IN A SEPARATE STATEMENT NATWEST CHAIRMAN LORD ALEXANDER SAID THE PACT WOULD CUT THROUGH MUCH OF THE BUREAUCRACY INVOLVED IN ESTABLISHING CROSSBORDER BANKING RELATIONSHIPS BY SIMPLIFYING PROCEDURES AND IMPROVING COMMUNICATIONS THE THREE BANKS ALSO SAID THEY ARE WORKING ON A NEW PAYMENT SERVICE FOR LOWVALUE PAYMENT TRANSACTIONS BETWEEN THEIR THREE COUNTRIES AS PART OF A DRIVE TO DEVELOP A FULLFLEDGED CROSSBORDER EUROPEAN BANKING NETWORK DETAILS OF THIS SERVICE ARE TO BE MADE PUBLIC LATER THIS YEAR MR KOHLHAUSSEN SAID THE AGREEMENT WAS DESIGNED AS A NEW FORM OF COOPERATION BETWEEN THE MAJOR EUROPEAN BANKS TO IMPROVE CUSTOMER SERVICE AND THEREBY STRENGTHEN THEIR COMPETITIVE POSITION BUT HE ALSO NOTED THAT THE PACT IS NOT INTENDED TO BE THE CORE OF A NEW BANKING GROUP WITH WIDERANGING STRATEGIC GOALS BUT RATHER A SPECIFIC COOPERATION CONCENTRATING ON PARTICULAR BUSINESS AREAS TO ENABLE MAXIMUM FLEXIBILITY AND EASE THE PARTICIPATION OF OTHER BANKS THE PACT IS BASED ON A SERIES OF BILATERAL AGREEMENTS BETWEEN PARTICIPATING BANKS COMMERZBANK AND SOCIETE GENERALE ALREADY HAVE SIMILAR COOPERATION AGREEMENTS WITH BANCO CENTRAL HISPANOAMERICANO SA IN SPAIN NATWEST IS NOT LINKING UP WITH BCH HOWEVER BECAUSE IT HAS ITS OWN NETWORK IN SPAIN 9307200006 930720 MCDONNELL DOUGLAS'S 2NDPERIOD NET SOARED TO RECORD DESPITE SALES DECLINE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP'S SECONDQUARTER NET INCOME INCLUDING UNUSUAL TAX AND ACCOUNTINGRELATED GAINS SOARED TO A RECORD 170 MILLION OR 433 A SHARE DESPITE A 20 PLUNGE IN REVENUE IN THE YEAREARLIER PERIOD THE ST LOUISBASED AEROSPACE GIANT EARNED 11 MILLION OR 29 CENTS A SHARE REVENUE FOR THE RECENT QUARTER WAS 381 BILLION COMPARED WITH 48 BILLION EVEN WITHOUT THE 57 MILLION IN GAINS MCDONNELL DOUGLAS STILL DRUMMED UP RECORD OPERATING EARNINGS OF 113 MILLION OR 287 A SHARE AND THE COMPANY CHIPPED AWAY AT DEBT THE GAINS REFLECTED SETTLEMENT OF A TAX ISSUE WITH THE INTERNAL REVENUE SERVICE AND REVERSAL OF PART OF A CHARGE FOR RETIREE HEALTHCARE BENEFITS THAT HAD BEEN TAKEN IN THE 1992 FIRST QUARTER COMMERCIALAIRPLANE ORDERS REMAINED IN A SEVERE SLUMP WITH SHARPLY LOWER DELIVERIES COMPRISING MUCH OF THE REVENUE DROP AND THE CONTROVERSIAL C17 MILITARY TRANSPORT ONLY MANAGED TO BREAK EVEN WE'RE OBVIOUSLY VERY PLEASED WITH THE PROGRESS THAT THE COMPANY IS MAKING OVERALL SAID CHIEF FINANCIAL OFFICER HERBERT LANESE WHO CREDITED SOME OF THE EARNINGS RISE TO THE COSTCUTTING AND PRODUCTIVITY HE HAD PROMISED INVESTORS EARLY IN THE YEAR MCDONNELL DOUGLAS SHARES ROSE 325 TO CLOSE AT 7525 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WHILE MILITARYAIRCRAFT REVENUE HELD STEADY COMMERCIALAIRPLANE REVENUE PLUMMETED 37 TO 135 BILLION FROM 215 BILLION THE CALIFORNIABASED COMMERCIAL UNIT WHICH HAS LAID OFF THOUSANDS OF WORKERS EARNED 14 MILLION FROM OPERATIONS IN THE QUARTER UP FROM 6 MILLION A YEAR EARLIER BUT THAT UNIT'S PROSPECTS FOR FUTURE BUSINESS CONTINUED TO WEAKEN IT CHALKED UP TWO ORDERS FOR ITS MD80 AND MD90 MODELS WHILE ITS MD11 WIDEBODY WON THREE NEW ORDERS SEPARATELY TWO OTHER MD11 ORDERS IN THE COMPANY'S BACKLOG WERE CANCELLED DURING THE QUARTER LEAVING THE COMPANY WITH A SINGLE NET NEW MD11 ORDER FOR THE PERIOD MR LANESE SAID THAT WHILE PRODUCTION RATES REMAIN STABLE A FAILURE OF THE JETLINER MARKET TO EVENTUALLY REBOUND WOULD FORCE MCDONNELL DOUGLAS AND OTHER MANUFACTURERS TO TAKE DRAMATIC ACTION TO FURTHER CUT FACTORY PRODUCTION AND JOBS THE MISSILES AND SPACE UNIT WHICH MAKES TOMAHAWK CRUISE MISSILES AND HOLDS MAJOR SPACELAUNCH CONTRACTS EARNED 100 MILLION FROM OPERATIONS COMPARED WITH 37 MILLION A YEAR EARLIER MR LANESE PREDICTED THAT THE FIXEDPRICE C17 PROGRAM WHICH RACKED UP ENORMOUS LOSSES BEFORE BREAKING EVEN IN THE FIRST AND SECOND QUARTERS OF THIS YEAR WOULD BE PROFITABLE IN THE SECOND HALF A DEFENSE DEPARTMENT SCIENCE BOARD IS JUST WRAPPING UP A SPECIAL STUDY OF THE C17 AND EXPECTS TO MAKE RECOMMENDATIONS SOON MCDONNELL DOUGLAS ALSO REDUCED ITS AEROSPACE DEBT BY 137 MILLION AFTER A 287 MILLION FIRSTQUARTER CUT TOTAL AEROSPACE DEBT OF 234 BILLION WAS DOWN 15 FROM THE END OF 1992 MR LANESE HAD VOWED LAST YEAR TO SLASH DEBT TO 18 BILLION AND TO GENERATE 1 BILLION IN CASH THIS YEAR BY SELLING ASSETS AND IMPROVING PROFIT THE COMPANY GENERATED 424 MILLION IN CASH IN THE SIXMONTH PERIOD HE SAID WITH 286 MILLION OF THAT FROM ASSET SALES IN RECENT MONTHS MCDONNEL DOUGLAS HAS SHOPPED FOR BUYERS FOR ITS MISSILE AND HELICOPTER DIVISIONS ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS THE COMPANY RECENTLY ACKNOWLEDGED TAKING ITS HELICOPTER BUSINESS OFF THE MARKET MR LANESE SAYS HE EXPECTS NOTHING MORE OF MATERIAL CONSEQUENCE TO BE SOLD THIS YEAR 9307200005 930720 BUSINESS BRIEF GULF USA IS INSOLVENT SAYS IT MIGHT FILE CHAPTER 11 PETITION WASHINGTON GULF USA CORP SAID THAT IT'S INSOLVENT INDICATING THAT ITS LIABILITIES EXCEED ITS ASSETS AND THAT IT IS GENERALLY UNABLE TO MEET ITS FINANCIAL OBLIGATIONS GULF USA AN OIL NATURAL GAS COAL AND REALESTATE HOLDING COMPANY REPORTED A LOSS OF 493 MILLION OR 476 A SHARE ON REVENUE OF 822 MILLION IN 1992 AND IN THE FIRST QUARTER OF THIS YEAR THE COMPANY REPORTED A NET LOSS OF 106 MILLION OR 98 CENTS A SHARE ON REVENUE OF 163 MILLION IN A STATEMENT RELEASED YESTERDAY GULF USA SAID IT PLANS A REORGANIZATION THAT WILL RESULT IN THE DEDICATION OF SUBSTANTIALLY ALL OF THE COMPANY'S ASSETS TO THE BENEFIT OF CREDITORS GULF USA OWNS GRE MINING INC A STRIPMINING CONCERN IN WESTERN PENNSYLVANIA IT ALSO HAS A 91 STAKE IN GULF RESOURCES PACIFIC LTD A NEW ZEALAND REALESTATE CONCERN AND A 26 EQUITY HOLDING IN AVIVA PETROLEUM INC A BRITISH OIL & GAS COMPANY GULF USA SAID THAT MANAGEMENT HAS BEEN AUTHORIZED TO TAKE ALL APPROPRIATE ACTION FOR A REORGANIZATION INCLUDING THE POSSIBLE FILING FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE COMPANY ANNOUNCED ITS INSOLVENCY AFTER THE MARKET CLOSED YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ITS COMMON CLOSED UNCHANGED AT 34 CENTS A SHARE EARLIER THIS YEAR THE COMPANY INDICATED THAT IT WAS FACING SERIOUS FINANCIAL TROUBLE WHEN IT ANNOUNCED ITS FIRSTQUARTER RESULTS IN MAY GULF USA SAID IT NEEDED TO RESTRUCTURE ITS BOND OBLIGATIONS TO CONTINUE AS A GOING CONCERN SINCE THEN THE COMPANY HAS DEFERRED PAYMENT OF DIVIDENDS ON PREFERRED STOCK AS WELL AS INTEREST ON SOME DEBT 9307200004 930720 CFTC BEGINS EFFORT TO BAN SEVEN TRADERS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE COMMODITY FUTURES TRADING COMMISSION IS SEEKING TO USE A NEW LAW TO PERMANENTLY BAR FROM THIS CITY'S FUTURES EXCHANGES SEVEN TRADERS WHO WERE CONVICTED OF FELONIES AFTER A 1988 GOVERNMENT INVESTIGATION FOUR OF THE SEVEN TRADERS HAVE RETURNED TO THE CHICAGO MERCANTILE EXCHANGE AND CHICAGO BOARD OF TRADE DESPITE THEIR CONVICTIONS THE FOUR ARE ROBERT MOSKY AND DANNY SCHECK AT THE CHICAGO MERC AND JOEL FETCHENHIER AND JOHN RYAN AT THE BOARD OF TRADE LAST WEEK A FRONTPAGE ARTICLE IN THE WALL STREET JOURNAL REPORTED THAT THE MERC HAD ALLOWED TRADERS WHO FOUGHT CRIMINAL CHARGES STEMMING FROM THE INVESTIGATION TO RETURN TO TRADING WHILE PERMANENTLY EXPELLING THOSE WHO COOPERATED WITH THE GOVERNMENT THE INTENT HERE IS TO DEAL WITH THOSE PERSONS WHO HAVE FELONY CONVICTIONS TO BEGIN THE PROCESS OF REMOVING THEM FROM THE TRADING FLOORS SAID DENNIS KLEJNA CHIEF OF ENFORCEMENT FOR THE CFTC WE THINK THESE PEOPLE SHOULD NOT BE OPERATING AS FLOOR TRADERS IN LIGHT OF THEIR FELONY CONVICTIONS THE CFTC'S ATTEMPT TO REMOVE THE TRADERS FROM CHICAGO'S BUSTLING FUTURES PITS REPRESENTS A NOVEL USE OF A LAW CONGRESS ENACTED LAST YEAR UNDER THE LAW FLOOR TRADERS MUST REGISTER WITH THE CFTC IN ORDER TO BUY AND SELL FUTURES CONTRACTS FOR THEIR OWN PROFIT AND THE AGENCY CAN DENY REGISTRATION TO CONVICTED FELONS IN THE PAST ONLY FLOOR BROKERS WHO HANDLE INVESTORS' ORDERS FOR THE FINANCIAL INSTRUMENTS WERE SUBJECTED TO SUCH BACKGROUND CHECKS FIVE YEARS AGO THE FEDERAL BUREAU OF INVESTIGATION PLACED AGENTS ON THE FLOORS OF THE TWO CHICAGO FUTURES EXCHANGES AS PART OF A TWOYEAR MULTIMILLIONDOLLAR UNDERCOVER STING OPERATION PROSECUTORS LATER INDICTED 48 TRADERS ON CHARGES THAT RANGED FROM FIXING TRADES TO SYSTEMATICALLY DEFRAUDING INVESTORS ALL BUT THREE OF THESE TRADERS ULTIMATELY WERE CONVICTED OR PLEADED GUILTY TO CRIMINAL CHARGES IN ALL 13 OF THE 45 TRADERS WHO ADMITTED TO OR WERE CONVICTED OF WRONGDOING HAVE SINCE RETURNED TO THE CHICAGO MARKETS WHERE FUTURES CONTRACTS ON STOCKS BONDS CURRENCIES AND COMMODITIES SUCH AS SOYBEANS AND CATTLE CHANGE HANDS NOT ALL 13 OF THESE TRADERS WERE NAMED IN YESTERDAY'S FILINGS BECAUSE THEY WEREN'T ALL CONVICTED OF FELONIES NOR WILL THE CFTC NECESSARILY USE THE NEW LAW TO TARGET OTHERS OF THE 45 TRADERS IMPLICATED IN THE GOVERNMENT'S INVESTIGATION SOME OF THEM HAVE VOLUNTARILY LEFT FUTURES TRADING AND OTHERS HAVE BEEN BANNED BY THEIR EXCHANGE FOR LIFE IN ADDITION TO THE CRIMINAL CHARGES THAT PROSECUTORS FILED AGAINST TRADERS AFTER THE 1988 FBI INVESTIGATION THE CFTC FILED ADMINISTRATIVE COMPLAINTS OF ITS OWN AT THE TIME THESE COMPLAINTS WERE THE PRIMARY TOOL THE AGENCY HAD TO REMOVE OR SUSPEND TRADERS FROM THE FLOOR MANY OF THE COMPLAINTS RESULTED IN TRADING SUSPENSIONS IMPOSED BY A CFTC ADMINISTRATIVE LAW JUDGE WHICH IN SOME CASES BOTH THE TRADERS AND THE CFTC'S ENFORCEMENT DIVISION ARE NOW APPEALING GENERALLY THE TRADERS THINK THE SUSPENSIONS WERE TOO SEVERE WHILE THE ENFORCEMENT DIVISION THINKS THEY WEREN'T SEVERE ENOUGH WITH ITS LATEST FILINGS THE AGENCY THAT REGULATES THIS COUNTRY'S BOOMING FUTURES INDUSTRY HAS UNVEILED A NEW WEAPON THE ABILITY TO SIMPLY DENY APPLICATIONS FOR FLOORTRADER REGISTRATION ON THE BASIS OF FELONY CONVICTIONS LAWYERS FOR SOME OF THE SEVEN TRADERS NAMED IN YESTERDAY'S FILINGS VOWED TO FIGHT THE NEW OFFENSIVE BY THE CFTC'S ENFORCEMENT DIVISION I DON'T KNOW ABOUT THE OTHER INDIVIDUALS BUT AS FAR AS JOHN RYAN IS CONCERNED THIS ACTION IS UNFAIR SAID GORDON NASH ATTORNEY FOR MR RYAN A SOYBEAN FUTURES TRADER WHO WAS CONVICTED OF DEFRAUDING INVESTORS AFTER THE GOVERNMENT'S INVESTIGATION IN FEBRUARY OF 1992 AN ADMINISTRATIVE LAW JUDGE REVIEWED ALL THE EVIDENCE RELATED TO JOHN RYAN AND CONCLUDED THAT A 90DAY SUSPENSION WOULD BE APPROPRIATE MR NASH SAID THE JUDGE REFUSED TO BAR JOHN RYAN FOR LIFE NOW THE FRONT DOOR IS CLOSED TO THE CFTC AND THEY'RE TRYING TO COME IN THROUGH THE BACK DOOR AN ATTORNEY FOR MR MOSKY A CURRENCY FUTURES TRADER AT THE MERC SAID NEITHER HE NOR HIS CLIENT HAD ANY COMMENT ON THE CFTC ACTION EFFORTS TO REACH MESSRS FETCHENHIER A SOYBEAN FUTURES TRADER AND SCHECK ALSO A CURRENCY FUTURES TRADER AND THEIR ATTORNEYS FOR COMMENT WERE UNSUCCESSFUL YESTERDAY'S FILINGS ALSO NAMED THREE TRADERS CONVICTED OF FELONIES WHO HAVEN'T YET RETURNED TO THE CHICAGO MARKETS BUT HAVE APPLIED TO DO SO IN THE FUTURE TWO OF THEM SOYBEAN TRADERS JOHN VERCILLO AND SHELDON SCHNEIDER WILL COMPLETE SUSPENSIONS IMPOSED BY THE BOARD OF TRADE AND BE ELIGIBLE TO RETURN THIS YEAR THE BOARD OF TRADE HASN'T FINISHED ITS DISCIPLINARY PROCEEDINGS AGAINST THE THIRD TRADER CHARLES BERGSTROM ALSO A SOYBEAN TRADER I BELIEVE THIS IS THE FIRST TIME THE CFTC HAS TAKEN SUCH AN ACTION AND SO WE'RE GOING TO HAVE TO LOOK AT IT VERY CAREFULLY SAID MICHAEL MONICO ATTORNEY FOR MR VERCILLO NEITHER MR SCHNEIDER NOR HIS LAWYER COULD BE REACHED FOR A RESPONSE TO THE CFTC ACTION AN ATTORNEY FOR MR BERGSTROM DECLINED TO COMMENT MERC AND BOARD OF TRADE OFFICIALS ALSO DECLINED TO COMMENT ON THE CFTC FILINGS THE SEVEN TRADERS NAMED IN THE FILINGS HAVE 20 DAYS TO RESPOND CFTC STAFF MEMBERS SAID THE ONLY GROUNDS A TRADER CAN USE TO APPEAL SUCH A FILING IS TO CLAIM THAT THE AGENCY IS MISTAKEN ABOUT THE FELONY CONVICTIONS IT ATTRIBUTES TO THE TRADER HOWEVER AN ATTORNEY WHO REQUESTED ANONYMITY SAID HE INTENDS TO BUILD A CASE ON BEHALF OF ONE OF THE TRADERS CLAIMING THAT THE NEW CFTC FILINGS AMOUNT TO PERMANENT EXPULSIONS SUCH ACTIONS THIS ATTORNEY ASSERTED UNFAIRLY EXCEED THE LESS SEVERE PENALTIES ALREADY IMPOSED BY THE AGENCY'S ADMINISTRATIVE LAW JUDGE 9307200003 930720 CLINTON ADOPTS POLICY TO EASE MILITARY GAY BAN ASKING SEXUAL ORIENTATION OF RECRUITS IS BARRED NUNN PLANS ALTERNATIVE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON ENDORSED A DON'T ASK DON'T TELL RULE TOWARD HOMOSEXUALS IN THE MILITARY A CHANGE THAT LOOSENS SOMEWHAT THE EXISTING PROHIBITION AGAINST HOMOSEXUALS IN THE ARMED SERVICES BUT HE FACES A POTENTIAL CHALLENGE FROM MILITARY ADVOCATES INCLUDING SEN SAM NUNN D GA AND OTHER LAWMAKERS THAT COULD TOUGHEN OR PREVENT ANY FURTHER RELAXATION OF THE RULES HE ALSO HAS PROVOKED THE IRE OF MANY GAYRIGHTS GROUPS SPEAKING TO A MILITARY AUDIENCE HERE MR CLINTON UNVEILED HIS LONGAWAITED POLICY WHILE FLANKED BY THE JOINT CHIEFS OF STAFF DEFENSE SECRETARY LES ASPIN AND VICE PRESIDENT AL GORE THE PRESIDENT ACKNOWLEDGED HOW DIFFICULT AND CONTROVERSIAL THE SUBJECT IS BUT PRAISED THE MILITARY AND SAID HE WAS DEPENDING ON IT TO CARRY OUT HIS POLICY AS PUT INTO EFFECT BY MR ASPIN'S DIRECTIVE THE POLICY STOPS THE MILITARY FROM ASKING THE SEXUAL ORIENTATION OF RECRUITS IN ADDITION COMMANDERS WON'T BE ALLOWED TO INITIATE INVESTIGATIONS SOLELY TO DETERMINE THE SEXUAL ORIENTATION OF A PERSON IN THE MILITARY AND ARE DIRECTED TO BE EVENHANDED ABOUT INVESTIGATING THE PRIVATE OFFBASE LIVES OF ALL MILITARY PERSONNEL HOMOSEXUALS CAN SERVE IN THE MILITARY ONLY AS LONG AS THEY KEEP THEIR SEXUAL ORIENTATION PRIVATE ACCORDING TO THE POLICY A STATEMENT BY A MEMBER OF THE ARMED FORCES THAT HE OR SHE IS HOMOSEXUAL CREATES A REBUTTABLE PRESUMPTION THAT THE SERVICEMEMBER IS ENGAGING IN HOMOSEXUAL ACTS OR HAS A PROPENSITY TO DO SO THE SERVICEMEMBER HAS THE OPPORTUNITY TO PRESENT EVIDENCE THAT HE DOES NOT ENGAGE IN HOMOSEXUAL ACTS AND DOES NOT HAVE A PROPENSITY OR INTENT TO DO SO PEOPLE IN THE MILITARY WOULD CONTINUE TO BE SUBJECT TO DISCHARGE FOR ENGAGING IN HOMOSEXUAL ACTS ON OR OFF BASE BUT THERE WAS STILL SOME CONFUSION OVER HOW OPENLY A PERSON COULD EXPRESS HIS OR HER HOMOSEXUALITY DESPITE THE DON'T TELL ASPECT OF THE POLICY THE PRESIDENT INSISTED AT AN AFTERNOON NEWS CONFERENCE THAT PEOPLE NEEDN'T HIDE THEIR HOMOSEXUALITY UNDER THIS POLICY A PERSON CAN SAY I AM A HOMOSEXUAL BUT I AM GOING TO STRICTLY ADHERE TO THE CODE OF CONDUCT' THE PRESIDENT SAID THE POLICY MARKS A RETREAT FROM MR CLINTON'S CAMPAIGN PLEDGE TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY GAYRIGHTS GROUPS AND THEIR SUPPORTERS ON CAPITOL HILL SUCH AS REP BARNEY FRANK D MASS EXPRESSED DISAPPOINTMENT MR CLINTON HIMSELF CALLED THE POLICY AN HONORABLE COMPROMISE THAT WILL NOT PLEASE EVERYONE PERHAPS NOT ANYONE AND CLEARLY NOT THOSE WHO HOLD THE MOST ADAMANT OPINIONS ON EITHER SIDE OF THIS ISSUE SEN NUNN WHO HEADS THE ARMED SERVICES COMMITTEE AND IS THE MOST RESPECTED VOICE ON MILITARY AFFAIRS IN CONGRESS TAKES A HARDER STAND ON THE ISSUE THAN MR CLINTON UNLIKE THE PRESIDENT HE THINKS HOMOSEXUAL ORIENTATION IS A POTENTIAL RISK TO THE ABILITY OF SMALL MILITARY UNITS TO STICK TOGETHER AND FIGHT ON THE BATTLEFIELD SEN NUNN ISSUED A STATEMENT SAYING THAT HIS INITIAL REACTION IS POSITIVE BUT AIDES SAID THE GEORGIA DEMOCRAT STILL PLANS TO OFFER HIS VERSION OF THE POLICY WHICH IS CLOSER TO THE CURRENT BAN THAN MR CLINTON'S AS LEGISLATION MR CLINTON HOWEVER WANTS TO KEEP THE ISSUE OUT OF LEGISLATIVE POLITICS AND DOESN'T WANT ANY VOTES IN CONGRESS ON IT THE PRESIDENT SAID HE HOPED THAT SEN NUNN WOULD REFRAIN FROM INSTIGATING A LEGISLATIVE SHOWDOWN HE ALSO ASSERTED THAT THERE IS GOOD REASON FOR SEN NUNN TO DESIST THE NATION'S MOST POPULAR MILITARY OFFICER GEN COLIN POWELL CHAIRMAN OF THE JOINT CHIEFS OF STAFF AND THE SERVICE CHIEFS THEMSELVES ARE BACKING HIS COMPROMISE 9307200002 930720 OTC FOCUS TECHNOLOGY STOCKS CONTINUE TO SLIDE PUSHING INDEX DOWN 390 TO 69583 BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FLAGGING TECHNOLOGY ISSUES STUNG THE NASDAQ MARKET AGAIN AS INVESTORS REMAINED CAUTIOUS FOLLOWING THE GROUP'S DISMAL PERFORMANCE OVER THE PAST FEW SESSIONS THE NASDAQ COMPOSITE INDEX DROPPED 390 POINTS OR 056 TO FINISH AT 69583 HAVING SET AN ALLTIME HIGH OF 71249 WEDNESDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1515 TO 1215 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME THINNED CONSIDERABLY TO 197900000 SHARES COMPARED WITH 240110000 SHARES FRIDAY THE TECHNOLOGY SECTOR IS THE NASDAQ MARKET RIGHT NOW SAID LARRY KINNEY HEAD OF OTC TRADING AT SOUNDVIEW FINANCIAL EVERYTHING'S VERY TENUOUS AND THIS WILL CONTINUE UNTIL WE GET THE EARNINGS OUT OF THE WAY AND SOME STABILITY BACK APPLE COMPUTER DELL COMPUTER LEGENT AND BIG BOARDTRADED STORAGE TECHNOLOGY BROUGHT TECHNOLOGY STOCKS TO THEIR KNEES LAST WEEK ON DISAPPOINTING EARNINGSRELATED NEWS YESTERDAY APPLE MICROSOFT AND SUN MICROSYSTEMS CONTINUED THE DOWNWARD PUSH WILLIAM HANEMAN SENIOR VICE PRESIDENT OF NASDAQ OVERTHECOUNTER TRADING AT LEGG MASON WOOD WALKER SAID THINGS SEEM FAIRLY INACTIVE RIGHT NOW EXCEPT FOR THE TECHNOLOGY STOCKS WE'RE STILL WAITING FOR A SUBSTANTIAL NUMBER OF COMPANIES TO REPORT EARNINGS ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS SAID HE BELIEVES RECENT WEAKNESS AMONG TECHNOLOGY ISSUES THOUGH DUE IN PART TO EARNINGS WORRIES HAS ALSO BEEN THE RESULT OF SOME NORMAL PROFITTAKING THE HIGHTECH GROUP HAS REACHED CLIMACTIC LEVELS MR GOLDMAN SAID SELLING HAS BECOME INDISCRIMINATE WHICH IS TYPICAL OF WHAT YOU SEE WHEN A GROUP IS READY TO HAVE A SHORTTERM BOUNCE HE SAID THE BOUNCE COULD OCCUR AS EARLY AS TODAY I STILL RATE THE INTERMEDIATE AND LONGTERM TREND FOR THE NASDAQ MARKET AS MOVING UP HE ADDED I'M LOOKING FOR THE LONGTERM BULL MARKET TO START UP AGAIN AND SOON MR GOLDMAN ALSO SAID LOW BOND YIELDS CONTINUE TO CREATE A PERMISSIVE ENVIRONMENT FOR STOCKS HE SAID LOW INTEREST RATES AND EASING CONCERNS ABOUT HIGHER INFLATION ARE STILL IMPORTANT PROPS FOR EQUITIES IN GENERAL WHICH SHOULD HELP TO REIGNITE AN OVERTHECOUNTER MARKET RALLY THE TREASURY'S LONG BOND MOVED UP FRACTIONALLY KEEPING ITS YIELD AT ABOUT 654 A HISTORIC LOW NARROWER INDICES SUCH AS THE NASDAQ 100 A BAROMETER OF THE LARGEST NONFINANCIAL STOCKS FELL 402 POINTS OR 057 TO 69812 THE MOST ACTIVE ISSUE WAS APPLE COMPUTER WHICH FELL 1 7/8 TO 25 5/8 ON VOLUME OF 72 MILLION SHARES ABOUT THREE TIMES THE AVERAGE LEVEL AFTER DIVING 8 1/4 POINTS FRIDAY MICROSOFT WAS OFF 2 3/8 AT 78 3/4 IN ACTIVE TRADING AFTER ANALYSTS SAID THEY EXPECT ITS SHARES TO LANGUISH FOR THE NEAR TERM ADOBE SYSTEMS DROPPED 2 1/8 TO 52 AND BMC SOFTWARE SLID 1 TO 50 1/2 SYNOPTICS ENDED DOWN 1 1/4 TO 31 FOLLOWING A WESSELS ARNOLD & HENDERSON DOWNGRADE THE SANTA CLARA CALIF COMPANY DESIGNS MANUFACTURES MARKETS AND SUPPORTS LOCAL AREA NETWORK SYSTEMS PICTURETEL OF DANVERS MASS FELL AGAIN AFTER PLUNGING 24 FRIDAY ON LOWERTHANEXPECTED SECONDQUARTER EARNINGS THE VISUAL COMMUNICATIONS SYSTEMS COMPANY TUMBLED 3 TO 16 1/2 AFTER HANCOCK INSTITUTIONAL EQUITY SERVICES CUT ITS RATING TO HOLD FROM BUY THE BROKERAGE FIRM ALSO CUT ITS 1993 EARNINGS ESTIMATE PICTURETEL TRADED ON VOLUME OF ABOUT FIVE MILLION SHARES COMPARED WITH AVERAGE DAILY VOLUME OF ABOUT 473100 GOOD EARNINGS LIFTED BMC WEST OF BOISE IDAHO 1 1/8 TO 16 7/8 THE DISTRIBUTOR AND RETAILER OF BUILDING MATERIALS REPORTED SECONDQUARTER NET INCOME OF 55 CENTS A SHARE COMPARED WITH 40 CENTS A YEAR EARLIER QUALCOMM INC SAN DIEGO JUMPED 3 1/2 TO 63 1/2 THE COMPANY EARNED 25 CENTS A SHARE IN ITS FISCAL THIRD QUARTER COMPARED WITH A LOSS OF THREE CENTS A SHARE A YEAR EARLIER THE PROFIT REPORT WAS ABOVE ANALYSTS' FORECASTS OF 14 CENTS A SHARE PAWNSHOP OPERATOR EZCORP AUSTIN TEXAS PLUNGED 10 TO 11 AFTER SAYING IT BELIEVES ITS EARNINGS GROWTH WILL BE BELOW CURRENT ANALYST PROJECTIONS FOR THE REST OF FISCAL 1993 AND FOR FISCAL 1994 ACCORDING TO INSTITUTIONAL BROKERS ESTIMATE SYSTEM EZCORP IS PROJECTED TO EARN 80 CENTS A SHARE IN FISCAL 1993 BASED ON FOUR ANALYSTS' ESTIMATES YESTERDAY THE COMPANY REPORTED FISCAL THIRDQUARTER NET OF 10 CENTS A SHARE ABOVE SEVEN CENTS A YEAR EARLIER BUT BELOW ANALYSTS' FORECASTS OF ABOUT 19 CENTS A SHARE A POOR OUTLOOK ANNOUNCED AFTER FRIDAY'S CLOSE LOPPED 1 1/2 OFF WESTERN PUBLISHING'S STOCK PRICE YESTERDAY FORCING IT TO CLOSE AT 14 3/4 THE NEW YORK PUBLISHER OF CHILDREN'S BOOKS SAID IT EXPECTS TO REPORT A LOSS FOR ITS SECOND FISCAL QUARTER ENDED JULY 1 COMPARED WITH EARNINGS OF SIX CENTS A SHARE A YEAR EARLIER REGENERON PHARMACEUTICALS TARRYTOWN NY ROSE 1 3/4 TO 21 1/2 AFTER IT SUBMITTED WITH AMGEN AN INVESTIGATIONAL NEW DRUG APPLICATION TO THE FOOD AND DRUG ADMINISTRATION TO INITIATE CLINICAL TRIALS OF BRAINDERIVED NEUROTROPHIC FACTOR IN PATIENTS WITH LOU GEHRIG'S DISEASE AMGEN THOUSAND OAKS CALIF LOST 1/8 TO 34 1/2 OTHER HEALTHCARE STOCKS ENDED MIXED CHIRON SLUMPED 1 1/8 TO 61 AND MEDIMMUNE FINISHED 1 LOWER AT 22 1/4 BUT HEART TECHNOLOGY FIRMED 1 TO 19 1/2 CASINO STOCKS ALSO WEAKENED CASINO MAGIC EASED 1 1/2 TO 20 ARGOSY GAMING DECREASED 2 TO 26 1/2 AND BOOMTOWN INC RETREATED 1 TO 23 3/4 9307200001 930720 WHO'S NEWS SOUTHERN PACIFIC RAIL HIRES INDUSTRY VETERAN AS PRESIDENT CEO SAN FRANCISCO SOUTHERN PACIFIC RAIL CORP SAID IT HIRED VETERAN RAILROADER EDWARD L MOYERS OUT OF RETIREMENT TO BE ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MOYERS 64 YEARS OLD SUCCEEDS PHILIP F ANSCHUTZ THE MAJORITY OWNER OF SOUTHERN PACIFIC RAIL WHO REMAINS CHAIRMAN MR ANSCHUTZ 53 SAID IN A STATEMENT THAT ED MOYERS BRINGS CRITICAL MANAGEMENT SKILLS AS THE FORMER TOP EXECUTIVE OF TWO SUCCESSFUL RAILROADS THE MOVE APPEARS TIMED TO BOOST INVESTOR CONFIDENCE IN SOUTHERN PACIFIC WHICH PLANS TO ISSUE STOCK AND NOTES WITH A VALUE OF MORE THAN 750 MILLION THROUGH AN INITIAL PUBLIC OFFERING IN EARLY AUGUST WHILE SOUTHERN PACIFIC HAS HIRED HIGHCALIBER RAILROAD SPECIALISTS IN RECENT YEARS IN RAIL OPERATIONS MARKETING QUALITY CONTROL AND ADMINISTRATION IT HASN'T HAD AS ITS HEAD A WELLRESPECTED PROVEN RAILROAD CEO SAID MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP IN THE LAST FEW YEARS SOUTHERN PACIFIC HAS RELIED HEAVILY ON SALES OF ASSETS TO SUSTAIN CASH FLOW AND REDUCE ITS HEAVY DEBT LOAD WHILE ITS RAILROAD OPERATIONS HAVE STRUGGLED AT OR BELOW BREAKEVEN SOUTHERN PACIFIC IS THE NATION'S SIXTH LARGEST RAILROAD MR MOYERS WAS PRESIDENT AND CHIEF EXECUTIVE OF ILLINOIS CENTRAL CORP FROM 1989 UNTIL HIS RETIREMENT IN FEBRUARY 1993 PREVIOUSLY HE WAS PRESIDENT AND CHIEF EXECUTIVE OF MIDSOUTH CORP ANALYSTS CREDIT MR MOYERS AS A HANDSON RAILROAD COSTCUTTER HE DID AN OUTSTANDING JOB AT ILLINOIS CENTRAL TO DRIVE DOWN OPERATING COSTS IMPROVE PROFIT MARGINS AND PAY DOWN DEBT SAID GRAEME ANNE LIDGERWOOD AN ANALYST AT FIRST BOSTON CORP 9307190183 930719 MARKETING & MEDIA BLOCKBUSTER BUYS OUT TOP TWO FRANCHISES FOR CASH AND STOCK FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP SAID IT IS BUYING OUT ITS TWO LARGEST FRANCHISES IN A DEAL VALUED AT 248 MILLION IN CASH AND STOCK UNDER THE AGREEMENT THE WJB VIDEO LIMITED PARTNERSHIP AND ITS AFFILIATES BASED IN SPARTANBURG SC WILL RECEIVE SEVEN MILLION SHARES OF BLOCKBUSTER STOCK GEORGE D JOHNSON JR 50 YEARS OLD THE HEAD OF WJB WILL JOIN BLOCKBUSTER IN THE NEWLY CREATED POSITION OF PRESIDENT OF BLOCKBUSTER'S CONSUMER DIVISION WHICH INCLUDES DOMESTIC HOME VIDEO RETAILING DOMESTIC MUSIC RETAILING AND DISCOVERY ZONE BUSINESSES ONCE THE DEAL IS COMPLETED BLOCKBUSTER DECIDED TO BUY OUT ITS LARGEST FRANCHISE OPERATOR BECAUSE WJB WAS RUNNING OUT OF TERRITORY FOR OPENING NEW STORES UNDER THE FRANCHISE AGREEMENT SAID STEVEN R BERRARD BLOCKBUSTER'S VICE CHAIRMAN AND PRESIDENT HE ALSO NOTED THAT THE WJB PARTNERS WANTED TO HAVE AN EQUITY STAKE IN BLOCKBUSTER LAST MONTH WJB SIGNED A DEAL TO ACQUIRE DENVERBASED UI VIDEO HOLDINGS INC BLOCKBUSTER'S SECONDLARGEST FRANCHISE OWNER FOR ABOUT 92 MILLION IN CASH BLOCKBUSTER SAID IT WOULD COMPLETE THIS ACQUISITION ON SIMILAR TERMS AS A RESULT BLOCKBUSTER WILL GROW BY 321 VIDEO STORES AND ALSO GAIN THE FRANCHISE RIGHTS TO DEVELOP 50 DISCOVERY ZONE FUNCENTERS BLOCKBUSTER WILL ALSO GET THE REAL ESTATE ON WHICH 50 OF WJB'S BLOCKBUSTER VIDEO STORES ARE LOCATED BLOCKBUSTER ALREADY HOLDS A 21 STAKE IN DISCOVERY ZONE INC A CHICAGO COMPANY THAT OPERATES INDOOR PLAYGROUNDS FOR CHILDREN THE ACQUISITIONS WILL HAVE ONLY A SLIGHT EFFECT ON EARNINGS MR BERRARD SAID CONTRIBUTING ABOUT ONE TO TWO CENTS ON PERSHARE EARNINGS FOR THE REST OF THE YEAR BLOCKBUSTER DISCLOSED THE DEAL AFTER THE STOCK MARKET CLOSED FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY BLOCKBUSTER'S STOCK CLOSED AT 2225 DOWN 375 CENTS 9307190182 930719 CREDIT MARKETS CORPORATES' NEW TRAIT VOLATILITY EXPENSE OF TOP ISSUES MAKES INVESTORS TURN JUMPY AT BAD NEWS BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOPQUALITY CORPORATE BONDS ONCE WERE AMONG THE MOST PREDICTABLE AND STABLE SECURITIES AROUND WITH PRICES RISING AND FALLING BY TINY AMOUNTS IN THE FOOTSTEPS OF US TREASURYS BUT LATELY SOME OF THESE HIGHGRADE BONDS HAVE BEEN BOUNCING AROUND MORE LIKE STOCKS THE MARKET FOR INVESTMENTGRADE CORPORATE BONDS HAS GROWN INCREASINGLY SKITTISH IN THE PAST SIX MONTHS IT HAS BECOME A MARKET WHERE PRICES CAN PLUNGE 20 OR 30 FOR A 1000 BOND IN RESPONSE TO THE FAINTEST HINT OF DISAPPOINTING CORPORATE NEWS ALTHOUGH LOWRATED JUNK BONDS HAVE ALWAYS BEEN JUMPY TWOPOINT AND THREEPOINT PRICE PLUNGES ARE NEW FOR BLUECHIP BONDS WHICH IN THE PAST RARELY MOVED MORE THAN 1/8 POINT ON CORPORATE NEWS THE CORPORATE BOND MARKET IS BEHAVING MORE LIKE THE STOCK MARKET IN TERMS OF REACTING TO COMPANY NEWS SAID DAN SCOTTO MANAGER OF CORPORATE BOND RESEARCH AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP AT EVEN A WHIFF OF A PROBLEM THERE IS AN IMMEDIATE FLIGHT OUT THE DOOR BY INVESTORS WHY BOND ANALYSTS SAY PORTFOLIO MANAGERS ARE UNDER THE GUN TO MAXIMIZE PERFORMANCE AT A TIME WHEN LOW INTEREST RATES MAKE IT INCREASINGLY DIFFICULT TO MAINTAIN RESPECTABLE TOTAL RETURNS INVESTORS ARE WATCHING CORPORATE BONDS WITH A VERY LARGE MAGNIFYING GLASS SAID JOHN HAGUE A MANAGING DIRECTOR AND PORTFOLIO MANAGER AT PACIFIC INVESTMENT MANAGEMENT CO IF THERE IS ANY SIGN OF TROUBLE INVESTORS WILL DUMP THE BOND THE PROBLEM IS THAT INVESTORS AREN'T BEING PAID ENOUGH OF A YIELD PREMIUM TO ABSORB POTENTIAL CREDIT RISK IN OTHER WORDS CORPORATE BONDS ARE EXPENSIVE LONGTERM DEBT OF COMPANIES WITH DOUBLEA CREDIT RATINGS TODAY YIELDS ONLY AROUND 74 DOWN FROM MORE THAN 84 A YEAR AGO TAKE A LOOK AT PACIFIC BELL THE SAN FRANCISCO TELEPHONE COMPANY PACIFIC BELL RETAINS ITS DOUBLEA CREDIT RATING AND NO ONE BELIEVES IT WILL HAVE TROUBLE MAKING FUTURE INTEREST PAYMENTS YET PRICES OF PACIFIC BELL BONDS BEGAN DECLINING LATE LAST YEAR AFTER PARENT PACIFIC TELESIS GROUP ANNOUNCED PLANS TO SPIN OFF WIRELESS OPERATIONS AND THE BONDS HAVE CONTINUED TO WEAKEN RELATIVE TO OTHER CORPORATE BONDS AND TREASURYS AS INVESTORS FRET ABOUT GROWING COMPETITION FROM OTHER TELECOMMUNICATIONS COMPANIES AND CONTINUED WEAKNESS IN CALIFORNIA'S ECONOMY SINGLEARATED KMART CORP BONDS WERE SHOT OUT OF THE SKY ADDS ONE MONEY MANAGER AFTER THE DISCOUNT RETAILER'S FIRSTQUARTER EARNINGS CAME IN WEAKER THAN EXPECTED JUST WHEN THE STREET WAS SHELL SHOCKED BY THE PRICE PLUNGE OF SOME PHILIP MORRIS COS BONDS TOUCHED OFF BY MARLBORO FRIDAY THE DAY INVESTORS LEARNED OF A 20 PRICE CUT FOR THE FAMOUS BRAND IN THE PAST HOLDERS OF INVESTMENTGRADE CORPORATE BONDS TYPICALLY TOOK DAYS OR WEEKS TO DECIDE WHETHER TO DUMP A PARTICULAR SECURITY EVEN THEN A SALE OFTEN REFLECTED A PERCEPTION THAT A COMPANY'S CREDIT RATING WOULD SOON BE DOWNGRADED TO JUNK STATUS OR THAT THE COMPANY MIGHT SOON HAVE TROUBLE MAKING INTEREST PAYMENTS BUT MONEY MANAGERS NOW ARE QUICKER ON THE TRIGGER BAILING OUT WHEN THEY SEE ON THE DISTANT HORIZON A POSSIBILITY THAT A BOND MIGHT BE SCRUTINIZED BY CREDITRATING SERVICES FOR A POSSIBLE DOWNGRADE BECAUSE US TREASURY DEBT IS CONSIDERED THE SAFEST OTHER FIXEDINCOME SECURITIES CARRY HIGHER YIELDS TO REFLECT THE ADDITIONAL RISK AND YIELDS ON CORPORATE BONDS HAVE BEEN MOVING CLOSER TO TREASURY YIELDS A NARROWING YIELD SPREAD PATTERN THAT MAKES CORPORATES RELATIVELY COSTLY AND INVESTORS LESS TOLERANT OF BAD NEWS A LONGTERM DOUBLEARATED CORPORATE BOND CURRENTLY YIELDS ABOUT 038 PERCENTAGE POINT MORE THAN TREASURYS WHILE A TRIPLEB CORPORATE BOND YIELDS ABOUT 109 PERCENTAGE POINTS MORE TODAY'S SPREADS ARE VERY NARROW IN HISTORICAL TERMS A YEAR AGO THEY WERE 052 AND 179 PERCENTAGE POINTS RESPECTIVELY SUCH NARROW SPREADS LEAD SOME MONEY MANAGERS TO SUSPECT THAT THE RECENT PRICE SWINGS IN THE HIGHGRADE CORPORATE BOND MARKET ARE A SIGN OF INFLATED PRICES THAT HAVE NOWHERE TO GO BUT DOWN WHEN SPREADS BECOME THIS NARROW YOU REALIZE THAT THERE IS MORE DOWNSIDE RISK THAN UPSIDE POTENTIAL NOT ENOUGH YIELD CUSHION SAID GLENN MURPHY CHIEF INVESTMENT OFFICER OF TRAVELERS ASSET MANAGEMENT A UNIT OF TRAVELERS INSURANCE CO IN OTHER WORDS BOND PRICES ARE SO EXPENSIVE THAT GOOD NEWS ABOUT A COMPANY WON'T BOOST PRICES ANY FURTHER BUT DISAPPOINTING NEWS CAN CAUSE PRICES TO CRASH MOREOVER BECAUSE MANY INVESTORS DON'T BELIEVE THAT THE BOND RALLY HAS MUCH LIFE LEFT PERFORMANCE WILL DEPEND UPON NOT MAKING MISTAKES SAID MR MURPHY MEANWHILE INCREASED REGULATORY SCRUTINY HAS PROMPTED SOME LARGE INSTITUTIONAL INVESTORS TO PURGE THEIR PORTFOLIOS OF POTENTIAL PROBLEM CREDITS AS EARLY AS POSSIBLE UNDER CURRENT REGULATORY GUIDELINES FOR EXAMPLE INSURERS MUST SET ASIDE ADDITIONAL CAPITAL IN ORDER TO HOLD LOWERRATED CORPORATE BONDS THE MARKET HAS BECOME MUCH MORE CREDITSENSITIVE AND A LOT OF THAT HAS TO DO WITH THE REGULATORY SCRUTINY SAYS JOSEPH LABRIOLA HEAD OF CORPORATE BOND RESEARCH AT KIDDER PEABODY & CO MANY INSTITUTIONAL INVESTORS HAVE BEEFED UP THEIR RESEARCH STAFFS TO FOCUS ON BONDS NOBODY WANTS TO GET STUCK HOLDING A BOND OF DECLINING CREDIT QUALITY PRICES OF MOST TREASURY NOTES AND BONDS ENDED LITTLE CHANGED ON FRIDAY WITH THE EXCEPTION OF THE BENCHMARK 30YEAR TREASURY BOND WHICH ROSE NEARLY 1/4 POINT OR NEARLY 250 FOR A BOND WITH A 1000 FACE AMOUNT TO 107 17/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE FELL TO 654 FROM 655 ON THURSDAY FRIDAY'S YIELD OF 654 IS THE LOWEST SINCE THE GOVERNMENT LAUNCHED REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 AFTER STARTING THE SESSION LOWER ON SCATTERED PROFITTAKING THE TREASURY MARKET RECEIVED A SOLID BOOST FROM NEWS OF AN UNEXPECTEDLY WEAK CONSUMER CONFIDENCE REPORT THE UNIVERSITY OF MICHIGAN'S CONSUMER SENTIMENT INDEX DECREASED TO 652 IN MIDJULY FROM 704 IN JUNE THE INDEX IS AVAILABLE ONLY TO SUBSCRIBERS BOND INVESTORS OFTEN SEE WEAK ECONOMIC NEWS AS BULLISH FOR BOND PRICES BECAUSE THE NEWS SIGNALS A LESSENED THREAT OF INFLATION WHICH HURTS THE RETURN OF FIXEDINCOME INVESTMENTS ALSO SUPPORTING THE MOVE HIGHER WAS MORE BAD NEWS FOR THE ECONOMY ON THE MANUFACTURING FRONT THE FEDERAL RESERVE REPORTED INDUSTRIAL PRODUCTION SLID 02 DURING JUNE AT THE WEAK END OF EXPECTATIONS DURING THE WEEK THE MARKET SHAVED 009 PERCENTAGE POINT OFF THE YIELD OF THE 30YEAR BOND FOR A TOTAL DECLINE OF ABOUT HALF A PERCENTAGE POINT SINCE LATE MAY THE MARKET PERFORMANCE LAST WEEK HAS TO BE CONSIDERED SPECTACULAR AND IT DID OCCUR ON SOME LEGITIMATE RETAIL DEMAND SAID WILLIAM V SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC THE TREASURY WILL ANNOUNCE WEDNESDAY THE DETAILS OF THE COMING TWOYEAR AND FIVEYEAR NOTE AUCTIONS MEANWHILE IN THE MUNICIPAL BOND MARKET ATTENTION WILL BE FOCUSED ON A HUGE OFFERING OF SHORTTERM SECURITIES FROM THE STATE OF CALIFORNIA THE STATE IS SLATED TO SELL ABOUT 2 BILLION OF REVENUE ANTICIPATION NOTES ON WEDNESDAY IN AN OFFERING TO BE MANAGED BY UNDERWRITERS LED BY LEHMAN BROTHERS 9307190181 930719 ECONOMY TOWNS IN MIDWEST MAY SEE REVENUE DRY UP AFTER FLOOD WATERS THAT ERODE CROPLAND AND TAX BASE COULD SPEED CONSOLIDATION OF COUNTIES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL WAPELLO IOWA THE GREAT FLOOD COULD CHANGE FOREVER THE WAY MUCH OF MIDWESTERN AMERICA GOVERNS ITSELF LONG AFTER FARM FIELDS DRY OUT AND THE LAST SANDBAG IS GONE MANY SMALL TOWNS IN THE MISSISSIPPI RIVER BASIN WILL FIND THEMSELVES SHRINKING FURTHER AS FEWER AGRICULTURAL DOLLARS FLOW TO MAIN STREET AT THE SAME TIME RAMPAGING RIVERS WASHING AWAY VALUABLE CROPLAND ARE ERODING THE TAX BASE MAKING CUTS IN SERVICES ALMOST INEVITABLE THE FLOODING WHICH HAS CAUSED LOSSES THAT SOME OFFICIALS ESTIMATE COULD TOTAL AS MUCH AS 10 BILLION ALSO IS LIKELY TO ACCELERATE THE CONSOLIDATION OF STRAPPED COUNTY GOVERNMENTS ALTHOUGH THEY ARE LITERALLY UP TO THEIR BOOTTOPS IN FLOOD PROBLEMS SOME RURALCOUNTY OFFICIALS ARE BEGINNING TO REALIZE THE LONGTERM RESULTS OF THE WIDENING DISASTER IT'S BEYOND DYING TOWNS WE'RE INTO DYING COUNTIES SAYS BETTY ROUDYBUSH ZONING AND FLOODPLAIN ADMINISTRATOR FOR LOUISA COUNTY POPULATION 11592 THE VALUE OF CROPPRODUCING LAND ALONG THE MISSISSIPPI AND ITS SPILT TRIBUTARIES COULD DECLINE BY MANY MILLIONS OF DOLLARS THAT WILL MEAN LESS TAX REVENUE WHEN LOUISA COUNTY WAS LAST APPRAISED IN 1991 ITS FARMLAND VALUES FELL 12 REFLECTING SEVERAL YEARS OF DROUGHT COUNTY ASSESSOR PEGGY BROCKWAY EXPECTS ANOTHER DECLINE BECAUSE OF FLOOD DAMAGE BUT SAYS IT'S GOING TO BE TWO YEARS BEFORE WE REALLY GET THE IMPACT WELL BEFORE THEN DIFFICULT CHOICES WILL HAVE TO BE MADE BY LAW IOWA COUNTIES CAN'T RAISE TAXES FOR AT LEAST ANOTHER YEAR AND THINGS IN THIS SMALL COUNTY IN SOUTHEAST IOWA ALREADY ARE TIGHT THE CURRENT COUNTY BUDGET PROJECTS EXPENDITURES EXCEEDING INCOME BY NEARLY 15 MILLION WHICH WILL FURTHER DRAIN THIN RESERVES CONSOLIDATION OF SERVICES OR PERHAPS EVEN THE COUNTIES THEMSELVES SEEMS CERTAIN FOR THE AVERAGE RESIDENT THAT MIGHT MEAN DRIVING MANY MORE MILES TO OBTAIN A LICENSE OR FILE A DEED THERE IS PRECEDENT FOR MERGERS OF COURSE RURAL SCHOOL SYSTEMS HAVE DONE IT FOR YEARS LEE COUNTY SOUTH OF LOUISA COUNTY SAVED 40000 BY COMBINING CITY AND COUNTY ASSESSORS' OFFICES AND AN OFFICIAL FROM THE BOARD OF SUPERVISORS SAYS HE FAVORS SOME KIND OF COMBINATION FOR LAWENFORCEMENT THIS IS SOMETHING ALL OF US HAVE BEEN THINKING OF AND HOPING WE DON'T HAVE TO SAYS JACK ESTLE CHAIRMAN OF THE LOUISA COUNTY BOARD OF SUPERVISORS THE PEOPLE JUST AREN'T READY FOR IT BUT THE RETIRED FARMER CONCEDES THAT LIGHTLY POPULATED COUNTIES LIKE HIS ARE VULNERABLE LOUISA OFFICIALS FEAR THAT WITH LESS INCOME FEWER LOADS OF CRUSHED ROCK WILL BE AVAILABLE TO FILL POTHOLES IN ROADS AND PAY FOR NEEDED CULVERT REPAIRS AND WHILE SCHOOLS NOW GET NEARLY 53 OF THE COUNTY'S INCOME FEWER TAX DOLLARS MAY MEAN TEACHER LAYOFFS AND LARGER CLASSES REPAIRING RIVER LEVEES ALONE COULD COST 15 MILLION WHILE THE COUNTY ISN'T RESPONSIBLE FOR THAT A SPECIAL ASSESSMENT BY THE LOCAL LEVEE DISTRICT WOULD MAKE OTHER REVENUERAISING INITIATIVES EVEN LESS PALATABLE TO VOTERS SOME BUSINESS PEOPLE ASSUME TAXES WILL INCREASE EVEN IF SERVICES ARE CUT THEY'LL HAVE TO GO UP SAYS ROBERT MCCULLEY WHOSE FAMILY'S GRAIN ELEVATOR IS THE ONLY BUSINESS NOW SUPPORTING THE TINY TOWN OF OAKVILLE IOWA THE ECONOMY OF LOUISA COUNTY IS TIED TO AGRICULTURE ABOUT HALF ITS 103 MILLION IN REVENUE IS RAISED FROM FARMS BUT WITH FLOODLOSS ESTIMATES NOW RUNNING UPWARD OF 60000 ACRES OR ONETHIRD OF THE COUNTY'S FARMLAND A SHAKEOUT OF FARMERS IS EXPECTED THE FARM ECONOMY HERE HASN'T BEEN ROSY FOR SEVERAL YEARS ALREADY ABOUT 14 FARM RESIDENTS WERE DISAPPEARING ANNUALLY FROM THE COUNTY LEDGERS THIS FLOOD WILL PUT SOME OF THOSE WHO WERE ON THE LINE OVER THE EDGE SAYS SHAWN DETTMAN DISTRICT CONSERVATIONIST WITH THE FEDERAL SOIL CONSERVATION SERVICE IN WAPELLO THE COUNTY SEAT EVEN BEFORE THIS YEAR'S PLANTDROWNING RAINS MARGINS WERE SO THIN THAT MOST FARMERS WERE FORCED TO TAKE SECOND JOBS ELSEWHERE I GO OUT AND I CANNOT FIND ANY FARM PEOPLE AT HOME SAYS MRS BROCKWAY THE ASSESSOR AS JOBS ARE LOST TO THE FLOOD OUR SERVICE NEEDS WILL BE TAXED PREDICTS MRS ROUDYBUSH THE ZONING OFFICIAL TAX DELINQUENCIES ARE EXPECTED TO GO UP BUT COLUMBUS JUNCTION MAYOR DON ORR IS COUNTING ON DISASTERRELIEF MONEY FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY RATHER THAN TAXES TO BAIL OUT THE COUNTY MORE TAXES ARE UNREALISTIC HE SAYS ADDING IT'S A HARD TIME FOR NOW BECAUSE IOWA'S COUNTIES ARE PROHIBITED FROM RAISING TAXES STAFF CUTS ARE BEING CONTEMPLATED ADDING TO THIS FISCAL BIND ARE STATEMANDATED PROGRAMS WHICH ACCORDING TO MR ESTLE THE COUNTY BOARD CHAIRMAN WERE DUMPED IN OUR LAPS NEW INDUSTRY IS HARD TO ATTRACT AND ITS ARRIVAL OFTEN EXACTS A HEAVY PRICE AFTER IT LURED A HUGE IBP INC HOGPROCESSING PLANT TO COLUMBUS JUNCTION IN THE 1980S THE INFLUX OF WOULDBE WORKERS STRAINED THE COURT SYSTEM AND OTHER SERVICES THEY WERE BROKE WHEN THEY CAME SAYS MRS BROCKWAY THE COUNTY ASSESSOR THAT'S WHY THEY CAME THE COUNTY'S RETAIL BASE HAS BEEN WITHERING FOR YEARS ONLY THREE OF LOUISA'S 16 TOWNS COLUMBUS JUNCTION MORNING SUN AND WAPELLO HAVE MUCH MORE THAN A CONVENIENCE STORE CAFE OR BAR I HAVE TO GO TO BURLINGTON OR MUSCATINE TO BUY MY SOCKS SAYS GREG JOHNSON AN APPRAISER FOR THE COUNTY BOTH TOWNS ARE MORE THAN 20 MILES AWAY IN NEIGHBORING COUNTIES THERE'S NO GROWTH IN THE AREA SAYS STEVE EARNEST 31 YEARS OLD WONDERING IF HE WILL REMAIN AT THE FAMILY INSURANCE AND REALESTATE AGENCY HERE THE EXODUS OF YOUNG PEOPLE IS A CONTINUING CONCERN AS HIS FURNITURE STORE IN MORNING SUN POPULATION 841 HOLDS ITS LAST SALE LEROY PIERCE SAYS HE HAS CLOSED TWO OF HIS FOUR AREA FURNITURE STORES BECAUSE THERE AREN'T ENOUGH BOYS TO OPERATE THEM MR PIERCE SOLD A FUNERAL HOME IN MORNING SUN FIVE YEARS AGO 9307190180 930719 PAPER CONCERNS IN CANADA SHOW IMPROVED RESULTS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL CANADIAN PULP AND PAPER MAKERS REPORTED IMPROVED SECONDQUARTER RESULTS BUT CONCEDED THAT THE OUTLOOK FOR THE NORTH AMERICAN INDUSTRY REMAINS MIXED MACMILLAN BLOEDEL LTD OF VANCOUVER BRITISH COLUMBIA SAID THE STRONG LUMBER MARKET ENABLED IT TO POST A PROFIT OF 225 MILLION CANADIAN DOLLARS US176 MILLION REVERSING A YEAREARLIER LOSS LUMBER PRICES AND A FAVORABLE EXCHANGE RATE ALSO HELPED CANADIAN PACIFIC FOREST PRODUCTS LTD MONTREAL REPORT A NARROWER SECONDQUARTER LOSS NORANDA FOREST INC TORONTO LAST WEEK REPORTED ITS FIRST QUARTERLY PROFIT IN THREE YEARS BUT THE COMPANIES ACKNOWLEDGED THAT NEWSPRINT DEMAND HAS SOFTENED PULP MARKETS REMAIN DEPRESSED AND CONTAINERBOARD PRICING IS STILL WEAK NEWSPRINTPRICE INCREASES IMPLEMENTED IN EASTERN NORTH AMERICA DURING THE SPRING HAVE BEEN ERODING LATELY ACCORDING TO INDUSTRY INSIDERS ANALYSTS SAY A BROADBASED IMPROVEMENT IN THE PULP AND PAPER INDUSTRY ISN'T LIKELY TO COME BEFORE NEXT YEAR WE'RE SORT OF IN A HOLDING PATTERN SAID MARK DIVERIO AN ANALYST WITH UBS SECURITIES INC CHIP DILLON AN ANALYST WITH SALOMON BROTHERS INC SAID THE PAPER INDUSTRY'S OVERSUPPLY PROBLEMS SHOULD EASE IN 1994 SINCE LITTLE NEW CAPACITY WILL COME ON STREAM MACMILLAN BLOEDEL'S NET INCOME OF C225 MILLION OR 19 CANADIAN CENTS A SHARE COMPARES WITH A LOSS OF C71 MILLION OR EIGHT CANADIAN CENTS A SHARE IN THE YEAREARLIER SECOND QUARTER SALES ROSE TO C9637 MILLION FROM C7755 MILLION CANADIAN PACIFIC FOREST PRODUCTS REPORTED A SECONDQUARTER LOSS OF C48 MILLION OR 79 CANADIAN CENTS A SHARE ON SALES OF C4902 MILLION A YEAR EARLIER THE COMPANY HAD A LOSS OF C595 MILLION OR C113 A SHARE ON SALES OF C4622 MILLION NORANDA FOREST HAD NET OF C4 MILLION OR ONE CANADIAN CENT A SHARE ON SECONDQUARTER SALES OF C374 MILLION THAT COMPARES WITH A LOSS OF C21 MILLION OR 18 CANADIAN CENTS A SHARE ON SALES OF C367 MILLION A YEAR EARLIER 9307190179 930719 MANAGER'S JOURNAL THE BEST DEFENSE AGAINST WORKPLACE VIOLENCE BY DENNIS L JOHNSON IN RECENT MONTHS OUR TV SCREENS HAVE BEEN SATURATED WITH REPORTS OF WORKPLACE VIOLENCE VIOLENCE ONCE THOUGHT TO BE LIMITED PRIMARILY TO THE INNER CITY INCREASINGLY HAS FOUND ITS WAY INTO THE OFFICES AND CORRIDORS OF FASHIONABLE UPSCALE OFFICE BUILDINGS MURDER IS NOW A MAJOR WORKPLACE HEALTH PROBLEM ACCORDING TO THE CENTERS FOR DISEASE CONTROL THERE WERE MORE THAN 750 WORKPLACE HOMICIDES IN 1992 LAST SEPTEMBER THE CDC DECLARED WORKPLACE HOMICIDE AN EPIDEMIC BUT MURDER IS MERELY THE TIP OF THE EMPLOYEE VIOLENCE ICEBERG FOR EVERY MURDER THERE ARE SCORES OF INJURIES BEATINGS STABBINGS SUICIDES SHOOTINGS RAPES NEARSUICIDES PSYCHOLOGICAL TRAUMAS AND MENTAL HEALTH PROBLEMS FROM AN ECONOMIC PERSPECTIVE VIOLENCE DISRUPTS PRODUCTIVITY AND COSTS BUSINESSES MILLIONS OF DOLLARS VIOLENCE CONTRIBUTES TO OR IS A PART OF WORKPLACE DRUG AND ALCOHOL ABUSE ABSENTEEISM AND MANY OTHER FACTORS THAT IMPEDE BUSINESS OPERATIONS AND HURT PRODUCTIVITY THE INCREASE IN EMPLOYEE VIOLENCE REFLECTS BOTH A STRESSEDOUT DOWNSIZED BUSINESS ENVIRONMENT AND A CHANGING SOCIETY OF COURSE WE HAVE LONG BEEN SUBJECTED TO THE CONSTRAINTS AND PRESSURES OF OFFICE LIFE DEADLINE PRESSURES CONFLICTING STYLES OF MANAGEMENT OFFICE POLITICS A SYSTEM OF VALUES THAT FAVORS LESS SUBSTANTIVE SOCIETAL MEMBERS EG ACTORS ATHLETES AND ROCK MUSICIANS AT THE EXPENSE OF MORE PRODUCTIVE ONES SCIENTISTS LINE MANAGERS AND TEACHERS COPING WITH THAT STRESS WAS MADE EASIER IN THE PAST BECAUSE OF CERTAIN STABLE AND ENDURING FACTORS IN THE LIVES OF MOST OF US FAMILY NEIGHBORS LIFETIME EMPLOYMENT ETC HOWEVER THE BEDROCK OF SOCIETY WHICH ONCE COULD BE COUNTED ON AS STABLE AND ENDURING HAS BEEN SHIFTING UNDER OUR FEET FOR THOSE WHO HAVE LOST THEIR FOOTING ENTIRELY THE STRESS OF OFFICE LIFE CAN BECOME TOO MUCH TO HANDLE CAUSING SEVERE REACTIONS WOMEN TEND TO BECOME DEPRESSED AND SEEK COUNSELING WHILE MEN ARE MORE LIKELY TO BECOME AGGRESSIVE AND POSSIBLY VIOLENT THERE ARE A NUMBER OF STEPS THAT EMPLOYERS CAN TAKE TO REDUCE WORKPLACE VIOLENCE A FEW EFFECTIVE STRATEGIES INCLUDE THREAT ASSESSMENT TEAMS AFTER A NUMBER OF VIOLENT INCIDENTS IBM DEVELOPED SUCH TEAMS WHEN A THREAT IS MADE STAFFERS FROM THE HUMAN RESOURCES SECURITY HEALTHANDSAFETY AND LEGAL DEPARTMENTS CONVENE TO EVALUATE THE PROBLEM INCLUDING THE CRITICAL DECISION ON WHEN TO NOTIFY LAW ENFORCEMENT AGENCIES SINCE ADOPTING THIS STRATEGY IBM HAS BEEN ABLE TO REDUCE THE SEVERITY OF SUCH INCIDENTS SIGNIFICANTLY TRAINING FOR SUPERVISORS AND MANAGERS SUPERVISORS AND MANAGERS WHO KNOW HOW TO RECOGNIZE AGGRESSIVE BEHAVIOR AND MITIGATE ITS EFFECTS FORM A CRUCIAL FRONTLINE DEFENSE TRAINING INCLUDES HOW TO RECOGNIZE AND RESPOND TO ATRISK EMPLOYEES CONFLICT RESOLUTION AND MEDIATION COMMUNICATION AND PROTOCOLS FOR REFERRING EMPLOYEES TO SUITABLE COUNSELORS BEHAVIORAL SCREENING MANY COMPANIES ALREADY EVALUATE APPLICANTS FOR GOODNESS OF FIT TO THE JOB BEING SOUGHT THE USE OF SUCH ASSESSMENTS CAN BE EXPANDED TO INCLUDE CURRENT EMPLOYEES IN A NONPUNITIVE BEHAVIORAL OBSERVATION SYSTEM EXAMPLE MORALE AT A PUBLIC UTILITY IN THE SOUTHEAST DROPPED AT THE SAME TIME THAT SUBSTANCE ABUSE ROSE TESTS WERE GIVEN TO 1100 EMPLOYEES AND 154 WERE SUBSEQUENTLY REFERRED FOR INTERVIEWS WITH LICENSED PSYCHOLOGISTS OF THAT NUMBER THREE REQUIRED EXTENSIVE TREATMENT AND WERE PLACED ON PAID LEAVE THE OTHERS RECEIVED PROFESSIONAL HELP WHILE CONTINUING TO WORK PREVENTION PLANNING WHEN DOWNSIZING SINCE JOB LOSSES TRIGGER SO MUCH WORKPLACE VIOLENCE COMPANIES PLANNING WORKFORCE REDUCTIONS MUST BE MORE SENSITIVE TO THE NEEDS OF THOSE WHO WILL BE AFFECTED THIS MEANS GIVING WORKERS AS MUCH ADVANCE NOTICE AS POSSIBLE HANDLING LAYOFFS FAIRLY AND PROVIDING REASONABLE SEVERANCE BENEFITS IF FEASIBLE IF DOWNSIZING IS MISHANDLED THE POTENTIAL EXISTS FOR BOTH GUILT AMONG SURVIVORS AND ANGER AMONG THE TERMINATED AT MARE ISLAND NAVAL BASE IN CALIFORNIA LAYOFFS WERE ANNOUNCED BY SUPPORT STAFFERS WHO HAD LITTLE INFORMATION ABOUT THE CRITERIA THAT WERE USED FOR LAYOFFS OR SEVERANCE PAY ANGER ERUPTED AND A BRAWL ENSUED AMONG WORKERS LEAVING SEVERAL INJURED POSTINCIDENT ANALYSIS FOR A NUMBER OF REASONS INCLUDING LIABILITY RISK THE COMPANY MUST DETERMINE WHETHER INTERVENTIONS COULD HAVE BEEN EFFECTIVE AS A PREVENTIVE MEASURE AFTER A WORKER AT A WISCONSIN PUBLIC UTILITY KILLED A FELLOW EMPLOYEE A PSYCHOLOGIST CONDUCTED A THOROUGH POSTINCIDENT ANALYSIS TOGETHER WITH REPRESENTATIVES OF THE SECURITY HUMAN RESOURCES AND MEDICAL DEPARTMENTS AND A CORPORATE ATTORNEY HE REVIEWED THE PERPETRATOR'S INITIAL JOB APPLICATION HIS PHYSICAL AND POLICE REPORTS AND CONDUCTED INTERVIEWS WITH COWORKERS AND FAMILY MEMBERS THE WORK RESULTED IN SEVERAL NEW POLICIES INCLUDING SUPERVISOR TRAINING NOTIFICATION TO TEAM MEMBERS OF THREATS AND AN IMPROVED EMPLOYEE ASSISTANCE PROGRAM REFERRAL SYSTEM THE COMPANY IS ALSO CONSIDERING A CONFIDENTIAL HOTLINE FOR REPORTING INCIDENTS THAT COULD LEAD TO VIOLENCE EMPLOYERS MUST HEED THIS WARNING IF ONLY IN THE INTEREST OF PROFITABILITY A DYSFUNCTIONAL WORKPLACE IS NOT PRODUCTIVE AND IT CAN EVEN BRING ABOUT THE DESTRUCTION OF THE ENTIRE ENTERPRISE SINCE CORPORATE AMERICA IS THE BATTLEGROUND ON WHICH THE ESCALATING WORKPLACE VIOLENCE WAR IS BEING WAGED IT IS NECESSARILY THE PLACE TO BEGIN THE CAMPAIGN TO END IT MR JOHNSON IS THE PRESIDENT OF A MANAGEMENT CONSULTING FIRM IN STUART FLA JOSEPH A KINNEY EXECUTIVE DIRECTOR OF THE NATIONAL SAFE WORKPLACE INSTITUTE IN CHICAGO CONTRIBUTED TO AND PROVIDED RESEARCH FOR THIS ARTICLE 9307190178 930719 UNION PACIFIC SEES LOWER NET DUE TO FLOODING PROFIT FOR 1993 MAY DECLINE BY AS MUCH AS 12 CENTS COSTS OF 30 MILLION CITED BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL UNION PACIFIC CORP SAID IT EXPECTS TO INCUR COSTS OF AS MUCH AS 30 MILLION BECAUSE OF TRACK DAMAGE HIGHER OPERATING EXPENSES AND LOST FREIGHT TRAFFIC RESULTING FROM THE MIDWESTERN FLOOD THE COMPANY'S COST ESTIMATE PROVIDED THE FIRST INDICATION OF THE FINANCIAL SETBACKS FACING TRANSPORTATION COMPANIES AS A RESULT OF THE DELUGE IN THE MIDWEST WE JUST HAVE A LOT OF THE RAILROAD UNDER WATER SAID DREW LEWIS UNION PACIFIC'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER WE HAVE TO REPLACE BALLAST TIES AND TRACK WE HAVE TO STOP TRAINS AND GO AROUND THE FLOODING AND THAT IS COSTLY ALSO THE FLOODS ARE LIKELY TO TAKE A TOLL ON OTHER RAILROADS WITH FLOODDAMAGED TRACK INCLUDING BURLINGTON NORTHERN INC SANTA FE PACIFIC CORP AND NORFOLK SOUTHERN CORP SANTA FE EXECUTIVES DECLINED TO ESTIMATE ITS FLOODRELATED COSTS BUT THEY EXPECT DELAYS AND TRAFFIC DETOURS TO CONTINUE FOR ANOTHER 10 DAYS WHILE WORK CREWS REPLACE A WASHEDOUT BRIDGE THAT SEVERED ITS BUSY CHICAGOLOS ANGELES ROUTE NORFOLK SOUTHERN WHICH ALSO DIDN'T ESTIMATE THE COSTS OF THE FLOODS SAID IT EXPECTS TO REPAIR TRACK AND RESTORE SERVICE ON ITS LINE TO KANSAS CITY IN ABOUT A WEEK ROBERT BANKS PRESIDENT OF TRANSPORTATION CONSULTANTS RL BANKS & ASSOCIATES INC WASHINGTON SAID THE REPAIRS AND DELAYS CAUSED BY THE FLOODS COULD COST RAILROADS BETWEEN 235 MILLION AND 275 MILLION IN THE SECOND HALF OF THE YEAR WITH BIG STRETCHES OF THE MISSISSIPPI MISSOURI AND ILLINOIS RIVERS STILL CLOSED TO COMMERCIAL NAVIGATION THE BARGE INDUSTRY IS LOSING NEARLY 4 MILLION A DAY IN REVENUES SAID JENNIFER BOUCHER MANAGER OF LEGISLATIVE AFFAIRS OF THE AMERICAN WATERWAYS OPERATORS INC BY SOME ESTIMATES NEARLY A THIRD OF THE NATION'S INLAND BARGE FLEET IS STRANDED OR DELAYED BY THE FLOODS AND THE OUTLOOK IS THAT RIVER TRAFFIC WON'T RETURN TO NORMAL LEVELS FOR AT LEAST A MONTH BUT PHYSICAL DAMAGE TO THE WATERWAYS SYSTEM IS EXPECTED TO BE RELATIVELY LIGHT SAID MIKE HAGAN PRESIDENT OF AMERICAN COMMERCIAL LINES THE INLAND BARGE SUBSIDIARY OF CSX CORP RICHMOND VA AND MR HAGAN EXPECTS THE BARGE INDUSTRY TO MAKE UP FOR SOME OF THE LOST REVENUES THROUGH HIGHER RATES ONCE WATERWAY TRAFFIC RESUMES WE THINK RATES WILL BE STRONGER FOR THE REST OF THE YEAR PARTLY BECAUSE WE WILL END UP WITH A COMPRESSED SHIPPING SEASON FOR CONTRACT GRAIN DELIVERIES HE SAID FACED WITH CLOSED BRIDGES AND ROADWAYS TRUCKERS ARE ENCOUNTERING DELAYS FROM LENGTHY REROUTING FRED SERPE EXECUTIVE DIRECTOR OF THE ILLINOIS TRANSPORTATION ASSOCIATION WHICH REPRESENTS TRUCKING COMPANIES SAID ONE RECENT MISSISSIPPI BRIDGE CLOSURE IS CAUSING DETOURS OF SEVERAL HUNDRED MILES AND DELAYS OF SIX TO EIGHT HOURS FOR SOME TRUCKERS WITH SOME MAJOR TRUCK AND RAIL ROUTES HAMPERED BY THE FLOODS MANUFACTURERS ARE TRYING TO PROTECT THEIR OPERATIONS MANUFACTURERS HAVE TO GET MORE INVENTORY INTO THE SYSTEM TO BUFFER THESE SERVICE DISRUPTIONS SAID ROBERT DELANEY EXECUTIVE VICE PRESIDENT OF CASS LOGISTICS INC A TRANSPORTATION INFORMATION COMPANY IN ST LOUIS FOR INSTANCE FORD MOTOR CO PLANS TO BOOST ITS INTRANSIT INVENTORIES OF AUTO AND TRUCK PARTS BOUND FOR ITS PLANT IN KANSAS CITY BY ONE OR TWO DAYS BECAUSE OF THE FLOODED NORFOLK SOUTHERN RAIL ROUTE IT NORMALLY USES AND THE COMPANY PLANS TO SHIFT SOME LOADS TO TRUCKS WHICH WILL INCREASE FORD'S COSTS SAID BILL ANDERSON FORD'S MANAGER OF TRANSPORTATION ANALYSIS AND PROCUREMENT 9307190177 930719 POLITICS & POLICY NEW POLICY ON HOMOSEXUALS IN MILITARY IS EXPECTED TO SURVIVE COURT CHALLENGE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PENTAGON OFFICIALS PREDICT THAT A NEW POLICY PARTIALLY LIFTING A BAN ON HOMOSEXUALS IN THE MILITARY WILL SUSTAIN A LIKELY COURT CHALLENGE THE POLICY EXPECTED TO BE ANNOUNCED BY PRESIDENT CLINTON THIS WEEK CHANGES THE FOCUS OF MILITARY BANS FROM HOMOSEXUALITY TO HOMOSEXUAL CONDUCT MEANWHILE SEN SAM NUNN D GA THE CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE SAID HE WILL MOVE QUICKLY TO PREVENT ANY FURTHER WEAKENING OF THE PENTAGON'S REGULATIONS BY PROPOSING A LAW THAT WILL STATE IN PART THE PRESENCE IN MILITARY UNITS BY PERSONS WHO BY THEIR ACTS OR BY THEIR STATEMENTS DEMONSTRATE A PROPENSITY TO ENGAGE IN HOMOSEXUAL ACTS WOULD CAUSE AN UNACCEPTABLE RISK TO THE HIGH STANDARDS OF MORALE GOOD ORDER AND DISCIPLINE BOTH THE PRESIDENT'S MOVE AND THE PROPOSED LAW WOULD ESTABLISH A POLICY KNOWN AS DON'T ASK DON'T TELL THE CHANGE WOULD PREVENT THE PENTAGON FROM QUESTIONING RECRUITS ABOUT THEIR SEXUAL PREFERENCE THE CHANGE WOULD ALSO PROHIBIT MEMBERS OF THE MILITARY SERVICES FROM DISCLOSING THEIR HOMOSEXUALITY TO PEOPLE OTHER THAN THEIR LAWYERS MINISTERS OR SPOUSES A DEFENSE DEPARTMENT OFFICIAL FLATLY DENIED PRESS ACCOUNTS LAST WEEK THAT ATTORNEY GENERAL JANET RENO WAS WORRIED THAT THE CHANGE WOULD BE DIFFICULT TO DEFEND IN COURT THE AMERICAN CIVIL LIBERTIES UNION HAS SAID IT WILL CHALLENGE THE MEASURE BECAUSE IT BELIEVES THE POLICY VIOLATES FREEDOM OF SPEECH AND A HOMOSEXUAL'S RIGHTS TO EQUAL PROTECTION UNDER FEDERAL LAWS DURING A BRIEFING FRIDAY OFFICIALS SAID THAT LAWYERS FROM BOTH THE JUSTICE DEPARTMENT AND THE PENTAGON HAVE CLOSELY EXAMINED THE CHANGE AGAINST THE BACKGROUND OF 15 CASES IN WHICH COURTS HAVE GENERALLY FAVORED MILITARY REGULATIONS OVER INDIVIDUAL HOMOSEXUALS' CONSTITUTIONAL RIGHTS THE HANDFUL OF GAY RIGHTS LEADERS IN CONGRESS CONCEDED DEFEAT REP GERRY STUDDS D MASS CALLED THE CHANGE VERY MARGINAL INDEED AND IN A LETTER TO PRESIDENT CLINTON URGED HIM TO CONTINUE TO FIGHT FOR HIS CAMPAIGN PLEDGE TO END ALL BANS AGAINST HOMOSEXUALS IN THE MILITARY BUT ON NBC NEWS'S MEET THE PRESS YESTERDAY HE SAID THAT IF MR CLINTON ANNOUNCED AN OUTRIGHT REPEAL OF THE BAN CONGRESS WOULD REJECT IT AND CODIFY THE EXISTING BAN REP STUDDS AN AVOWED HOMOSEXUAL HAS BEEN CONSULTING CLOSELY WITH THE PRESIDENT AND THE SECRETARY OF DEFENSE ON THE ISSUE IN HIS LETTER TO THE PRESIDENT HE SAID THE LATEST DRAFT OF THE POLICY THAT HE HAD SEEN USED VERBAL GYMNASTICS TO FINESSE THE APPARENT CONTRADICTION BETWEEN DON'T ASK AND THE UNCHANGED RULES BARRING HOMOSEXUAL CONDUCT THE DRAFT HE SAID EXPLICITLY INSISTS THAT LESBIANS AND GAY MEN WILL CONTINUE TO BE SUBJECT TO INVESTIGATION AND SEPARATION FROM THE SERVICE MERELY FOR SPEAKING PRIVATELY ABOUT THEIR SEXUAL ORIENTATION OR ENGAGING IN PRIVATE CONSENSUAL CONDUCT SEN NUNN'S PROPOSAL TO PUT DON'T ASK DON'T TELL INTO LAW CAME AS A SURPRISE TO THE PENTAGON SECRETARY OF DEFENSE LES ASPIN HAD SPENT WEEKS IN WHAT ONE OFFICIAL CALLED SHUTTLE DIPLOMACY BETWEEN THE PRESIDENT AND JOINT CHIEFS OF STAFF TRYING TO WORK OUT A COMPROMISE THAT WOULD HEAD OFF ANY LEGISLATIVE MOVE IN CONGRESS SEN NUNN SAID HE WOULD INTRODUCE HIS BILL TOMORROW EXPLAINING THAT IT WAS NEEDED TO GIVE THE MILITARY FORCES SOME SENSE OF LONGRANGE POLICY THE MEASURE IS EXPECTED TO GET QUICK APPROVAL PENTAGON OFFICIALS DESCRIBED HOW THEY HAD WRESTLED WITH THE POLICY CHANGE FOR SIX MONTHS AND FACED MANY EMOTIONAL CONFLICTS A MILITARY TEAM WORKED ON THE PROPOSED CHANGE ALONGSIDE A SEPARATE CIVILIAN TEAM FROM THE RAND CORP A SANTA MONICABASED RESEARCH COMPANY THE MILITARY TEAM ACCORDING TO ONE OFFICIAL RESISTED MOST PROPOSED CHANGES MEANWHILE THE RAND CORP TEAM SUBMITTED A REPORT THAT INCLUDED REGULATIONS ON MILITARY BEHAVIOR BASED ON CONDUCT AND NOT ON SEXUAL PREFERENCE ONE VETERAN OFFICIAL SAID THAT GAINING CONSENSUS ON THE ISSUE WAS THE MOST DIFFICULT POLITICAL TASK HE HAD EVER EXPERIENCED AT ONE POINT HE SAID AS MANY AS 30 LAWYERS FROM THE PENTAGON AND THE JUSTICE DEPARTMENT HASHED OVER THE ISSUES IN THE SAME ROOM 9307190176 930719 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED 10 NEW LISTINGS INCLUDING SIX INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED SIX NEW LISTINGS ALL INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS ONE ON THE EMERGING COMPANY MARKETPLACE THE BIG BOARD SAID IT BEGAN TRADING SHARES IN THE FOLLOWING INITIAL PUBLIC OFFERINGS CHINA TIRE HOLDINGS LTD HONG KONG A MAKER OF BICYCLE AND AUTOMOBILE TIRES UNDER TIR POST PROPERTIES INC ATLANTA A DEVELOPER AND OPERATOR OF MULTIFAMILY APARTMENT COMMUNITIES UNDER PPS AND FOUR CLOSEDEND FUNDS MUNIASSETS FUND INC PLAINSBORO NJ UNDER MUA MORGAN STANLEY EMERGING MARKETS DEBT FUND NEW YORK UNDER MSD VAN KAMPEN MERRITT MUNICIPAL OPPORTUNITY TRUST II OAKBROOK ILL UNDER VOT AND CORPORATE HIGH YIELD FUND INC PLAINSBORO NJ UNDER COY THE BIG BOARD ALSO BEGAN TRADING THE FOLLOWING COMPANIES WHICH HAD PREVIOUSLY TRADED OVERTHECOUNTER AZTAR CORP PHOENIX AN OPERATOR OF CASINO HOTELS UNDER AZR COLUMBIA HOSPITAL CORP FORT WORTH TEXAS AN OPERATOR OF HOSPITALS UNDER COL GRANCARE INC CULVER CITY CALIF AN OWNER AND OPERATOR OF LONGTERM HEALTHCARE FACILITIES UNDER GC AND KASSLER HOLDINGS CO HIGHLAND CALIF A GENERAL CONTRACTOR ENGAGED IN CONSTRUCTION OF ROADS BRIDGES AND OTHER PUBLIC WORKS PROJECTS UNDER KAS NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET GENYZYME TRANSGENIC CORP FRAMINGHAM MASS A DEVELOPER OF RECOMBINANT PROTEINS FOR THERAPEUTIC AND DIAGNOSTIC USE UNDER GZTC SUNDANCE HOMES INC ROLLING MEADOWS ILL A BUILDER OF SINGLEFAMILY HOMES UNDER SUNH CELESTIAL SEASONINGS INC BOULDER COLO A MAKER OF HERB TEAS UNDER CTEA FOURTH SHIFT CORP MINNEAPOLIS MINN A DEVELOPER OF SOFTWARE FOR INDUSTRIAL PLANNING AND MANAGEMENT PROCESS UNDER FSFT CENTRAL GARDEN & PET CO LAFAYETTE CALIF A MAKER OF LAWN GARDEN PET AND POOL SUPPLIES UNDER CENT STECKVAUGHAN PUBLISHING CORP AUSTIN TEXAS A PUBLISHER OF SUPPLEMENTAL EDUCATION MATERIALS UNDER STEK THE AMERICAN STOCK EXCHANGE BEGAN TRADING SHARES IN INTERNATIONAL REMOTE IMAGING SYSTEMS INC CHATSWORTH CALIF A MAKER OF LABORATORY WORKSTATIONS FOR PERFORMING CLINICAL UNRINALYSIS UNDER IRI THE COMPANY MOVED UP FROM THE AMERICAN STOCK EXCHANGE'S EMERGING COMPANY'S MARKETPLACE THE AMEX ALSO BEGAN TRADING SHARES IN INNOVET INC WEST PALM BEACH FLA A PHARMACEUTICAL AND BIOLOGICAL PRODUCTS CONCERN UNDER IVTEC ON ITS EMERGING COMPANY MARKETPLACE INNOVET PREVIOUSLY TRADED OVER THE COUNTER THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING OPTIONS ON PLAYERS INTERNATIONAL INC AND STARTER CORP THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON STARTER CORP 9307190175 930719 WHO'S NEWS ALZA CORP ALZA CORP PALO ALTO CALIF ERNEST MARIO 55YEAROLD CHIEF EXECUTIVE OFFICER AND DEPUTY CHAIRMAN OF GLAXO HOLDINGS PLC OF BRITAIN HAS BEEN NAMED TO SUCCEED MARTIN S GERSTEL AS COCHAIRMAN AND CHIEF EXECUTIVE EFFECTIVE AUG 2 MR GERSTEL 52 WHO HELPED FOUND THE PHARMACEUTICAL COMPANY IN 1968 WITH ALEX ZAFFARONI WHO REMAINS AS COCHAIRMAN HAD INDICATED EARLY LAST YEAR HE WAS RESIGNING HIS POSITION TO PURSUE A NUMBER OF PERSONAL INTERESTS INCLUDING WORK FOR VARIOUS CHARITABLE ORGANIZATIONS MR GERSTEL IS TO BECOME VICE CHAIRMAN OF ALZA FOR THE TRANSITION AND WILL REMAIN ON THE BOARD 9307190174 930719 BUSINESS BRIEF MASTERCARD INTERNATIONAL INC VOLUME OF PURCHASES GREW 20 IN FIRST 6 MONTHS OF 1993 MASTERCARD INTERNATIONAL INC NEW YORK REPORTED A 20 INCREASE IN PURCHASE AND CASH ADVANCE VOLUME IN THE US IN THE FIRST SIX MONTHS OF 1993 FROM LAST YEAR VOLUME WAS MORE THAN 49 BILLION IN THE PERIOD THE CREDIT CARD COMPANY SAID IT ATTRIBUTED THE GROWTH IN VOLUME TO NEW ACCEPTANCE LOCATIONS SUCH AS FAST FOOD RESTAURANTS AND SUPERMARKETS THAT PREVIOUSLY DID NOT TAKE CREDIT CARDS AND A RISE IN THE NUMBER OF CARDS IN CIRCULATION THE SECOND QUARTER HAD THE HIGHEST QUARTERLY GROWTH RATE SINCE 1988 THE COMPANY REPORTED MASTERCARD SAID IT EXPECTS VOLUME TO RISE THROUGH THE REST OF THE YEAR CITING A 27 INCREASE IN VOLUME FOR THE FIRST WEEK IN JULY OVER THE YEAREARLIER PERIOD 9307190173 930719 CHINESE YUAN ROSE ON SHANGHAI MARKET IN THE LATEST WEEK SPECIAL TO THE WALL STREET JOURNAL HONG KONG CHINA'S CURRENCY ROSE HANDILY DURING THE WEEK AT SHANGHAI'S SWAP FOREIGNEXCHANGE CENTER IN TRADING FRIDAY THE DOLLAR ENDED AT 85340 YUAN DOWN 8 FROM LAST SATURDAY'S CLOSE OF 92800 YUAN THE EXCHANGE WAS OPEN LAST SATURDAY FOR A SPECIAL SESSION BECAUSE OF AN OUTAGE THE PREVIOUS DAY THIS WEEK THE CHINESE CURRENCY WAS HELPED BY RISING INTEREST RATES MASSIVE INTERVENTION BY THE PEOPLE'S BANK OF CHINA AND CONTINUED CONFIDENCE THAT VICE PREMIER ZHU RONGJI AS HEAD OF THE CENTRAL BANKS IS MOVING TO COOL INFLATION UNDER MR ZHU'S DIRECTION THE CENTRAL BANK ANNOUNCED THAT DEPOSIT RATES WOULD RISE AN AVERAGE OF 172 PERCENTAGE POINTS WHICH REPORTEDLY ENCOURAGED CHINESE INVESTORS TO DUMP CASH INTO BANK ACCOUNTS WHILE LENDING RATES WERE LIFTED BY AN AVERAGE 138 PERCENTAGE POINTS IN INTRADAY ACTIVITY ON FRIDAY ON THE SHANGHAI MARKET THE DOLLAR OPENED AT 85060 YUAN ITS LOW AND MOVED UP TO 85340 YUAN AT THE CLOSE MEANWHILE AT THE OFFICIAL EXCHANGE RATES THE DOLLAR BOUGHT 57468 YUAN UNCHANGED FOR THE WEEK 9307190172 930719 GERMANY'S BASF AG AND RUSSIA'S GAZPROM PLAN CHEMICAL FACILITY SPECIAL TO THE WALL STREET JOURNAL BERLIN GERMAN CHEMICALS GROUP BASF AG SAID IT PLANS A JOINT CONSTRUCTION PROJECT WITH RUSSIAN NATURALGAS COMPANY GAZPROM VALUED AT 12 BILLION MARKS 6962 MILLION TO 15 BILLION MARKS CONSTRUCTION OF THE ETHYLENE AND POLYETHYLENE FACILITY IS TO BEGIN IN 1995 OF THE TOTAL VALUE 500 MILLION MARKS IS TO BE RAISED IN FOREIGN CURRENCIES BASF CHAIRMAN JUERGEN STRUBE SAID THE COMPANIES ARE SEEKING FURTHER PARTNERS AND HAVE HELD DISCUSSIONS WITH SALZGITTER AG AND LINDE AG 9307190171 930719 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CHESAPEAKE & POTOMAC CO 125 MILLION OF DEBENTURES DUE JULY 15 2025 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY CITICORP SECURITIES MARKETS INC REOFFERED AS 7119S AT 98852 TO YIELD 7091 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAPLUS BY STANDARD & POOR'S CORP CHESAPEAKE & POTOMAC IS A UNIT OF BELL ATLANTIC CORP COMMONWEALTH EDISON CO 250 MILLION OF FIRST MORTGAGE BONDS PRICED BY A GROUP OF UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 100 MILLION OF FIRST MORTGAGE BONDS DUE JULY 15 2003 WAS PRICED AS 6625S AT 9987 TO YIELD 6643 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 95 BASIS POINTS OVER TREASURYS THE SECOND PART CONSISTING OF 150 MILLION OF FIRST MORTGAGE BONDS DUE JULY 15 2023 WAS PRICED AS 775S AT 9978 TO YIELD 7769 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 122 BASIS POINTS OVER TREASURYS BOTH TRANCHES ARE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P FEDERAL HOME LOAN BANK SYSTEM 150 MILLION OF INCREMENTAL STEPUP NOTES DUE JULY 27 1998 PRICED AS 375S AT PAR ACCORDING TO MCM CORPORATEWATCH THE COUPON STEPS UP TO 5 IN THE SECOND AND THIRD YEARS AND STEPS TO 62 IN THE FOURTH AND FIFTH YEARS THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 21 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO FIRST UNION CORP 150 MILLION OF FLOATINGRATE NOTES DUE JULY 22 2003 PRICED INITIALLY AT PAR THE NOTES WILL FLOAT QUARTERLY AT 125 BASIS POINTS ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE WITH A 4125 FLOOR AND HAVE NO CAP ACCORDING TO MCM CORPORATEWATCH THREEMONTH LIBOR CURRENTLY IS 325 THE NONCALLABLE ISSUE IS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO JORDAN INDUSTRIES INC 350 MILLION OF SENIOR NOTES AND SENIOR SUBORDINATED DISCOUNT DEBENTURES PRICED BY A GROUP OF UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 275 MILLION OF SENIOR NOTES DUE AUG 1 2003 WAS PRICED AS 10375S AT PAR NONCALLABLE FOR FIVE YEARS THE FIRST ISSUE IS RATED SINGLEB3 BY MOODY'S AND SINGLEBPLUS BY S&P THE SECOND PART CONSISTING OF 75 MILLION OF SENIOR SUBORDINATED DISCOUNT DEBENTURES DUE AUG 1 2005 WAS PRICED AT 56359 TO YIELD 1175 THE SECOND ISSUE IS RATED CAA BY MOODY'S AND SINGLEBMINUS BY S&P LOWE'S COS 250 MILLION OF 3 CONVERTIBLE SUBORDINATED NOTES DUE JULY 22 2003 PRICED AT 88027 TO YIELD 45 THE ISSUE IS NONCALLABLE FOR THREE YEARS THE NOTES ARE CONVERTIBLE INTO COMMON STOCK AT 46 A SHARE REPRESENTING AN 1833 CONVERSION PREMIUM OVER THURSDAY'S CLOSING PRICE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SHEARSON LEHMAN BROTHERS HOLDINGS INC 200 MILLION OF NOTES DUE FEB 15 1998 PRICED AS 575S AT 99515 TO YIELD 5872 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS SHEARSON LEHMAN IS A UNIT OF AMERICAN EXPRESS CO JOHNSTOWN AMERICA INDUSTRIES INC INITIAL OFFERING OF 38 MILLION COMMON SHARES PRICED AT 14 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC METROCALL INC INITIAL OFFERING OF 27 MILLION COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY RAYMOND JAMES MORGAN STANLEY EMERGING MARKETS DEBT FUND INC 10 MILLION SHARES PRICED AT 15 APIECE FEDERAL NATIONAL MORTGAGE ASSOCIATION 750 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993G27 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 292 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993G29 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 353 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993144 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 838 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1993145 IS BACKED BY CLASSES FROM THE AGENCY'S REMIC 1992162J BARCLAYS BANK OVERSEAS CAPITAL CORP UK PARENT 150 MILLION CANADIAN DOLLARS OF 6375 EUROBONDS DUE AUG 20 1997 AT ISSUE PRICE 100514 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 99139 TO YIELD 6627 A MARGIN OF 60 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT BOND DUE 1996 FEES 1625 POINTS BAYERISCHE VEREINSBANK AG GERMANY 150 MILLION OF COLLARED SUBORDINATED FLOATINGRATE EURONOTES DUE AUG 16 2005 AT ISSUE AND REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS LESS 025 POINT SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 FEES 05 POINT CHUBU ELECTRIC POWER CO JAPAN 350 MILLION OF 625 EUROBONDS DUE AUG 5 2003 AT ISSUE AND REOFFER PRICE 9989 VIA IBJ INTERNATIONAL LTD BONDS YIELD 627 A MARGIN OF 46 BASIS POINTS OVER 10YEAR US TREASURY FEES 035 POINT CREDIT COMMERCIAL DE FRANCE SA FRANCE 100 MILLION OF COLLARED SUBORDINATED FLOATINGRATE EURONOTES DUE AUGUST 2005 AT ISSUE AND REOFFER PRICE 995 VIA CREDIT SUISSE FIRST BOSTON LTD AND LEHMAN BROTHERS INTERNATIONAL INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR FOR DOLLARS LESS 025 POINT SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 FEES 05 POINT ELECTRICITE DE FRANCE FRANCE 100 MILLION SWISS FRANCS OF 425 PUBLIC BONDS DUE SEPT 1 1998 PRICED AT 102 VIA CREDIT SUISSE FEES 1625 POINTS THAI PETROCHEMICAL INDUSTRY CAYMAN ISLANDS THAI PARENT 48 MILLION OF 35 EXCHANGEABLE EUROBONDS DUE AUGUST 2003 AT ISSUE PRICE PAR VIA ROBERT FLEMING & CO BONDS EXCHANGEABLE INTO ORDINARY SHARES OF PARENT COMPANY AT STRIKE PRICE 10381 AT PREMIUM 12 OVER FIVEDAY THAI BAHTUS DOLLAR RATE BONDS CALLABLE IN 1997 AND 1998 TO YIELD 675 IF COMPANY SHARES 140 ABOVE STRIKE PRICE ONETIME PUT OPTION EXERCISABLE IN 1998 IN US DOLLARS AT STRIKE PRICE 1186 OTHER TERMS FIXED JULY 19 FEES 25 POINTS TURKEY SOVEREIGN 250 MILLION MARKS OF 875 EUROBONDS DUE JULY 9 2003 AT ISSUE PRICE 1026 VIA DEUTSCHE GENOSSENSCHAFTSBANK AG BONDS TO TRADE INTERCHANGEABLY WITH 750 MILLION MARKS OF IDENTICAL OUTSTANDING NOTES REOFFERED AT INDICATED PRICE BETWEEN 1002 AND 1003 TO YIELD 871 A MARGIN OF 217 BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES THREE POINTS LESS SPECIAL FEE OF 02 POINT DEDUCTED FOR LEAD MANAGER 9307190170 930719 JAPANESE VOTERS END ERA OF LDP POWER MONOPOLY PARTY LOSES ITS MAJORITY IN DIET'S LOWER HOUSE MIYAZAWA URGED TO QUIT BY WALL STREET JOURNAL REPORTERS JACOB M SCHLESINGER CLAY CHANDLER AND MICHAEL WILLIAMS TOKYO JAPANESE VOTERS STRIPPED THE LIBERAL DEMOCRATIC PARTY OF ITS GOVERNING MAJORITY AND GAVE STRONG BACKING TO NEW CONSERVATIVE PARTIES RUN BY YOUNGER POLITICIANS WHO ARE PROMOTING A DIFFERENT VISION FOR THE NATION SUNDAY'S ELECTION RESULTS MARKED THE FIRST TIME IN 38 YEARS THAT THE LDP HAS LOST ITS DOMINANCE OVER THE POWERFUL LOWER HOUSE OF THE DIET OR PARLIAMENT AT THE SAME TIME THE SOCIALIST PARTY TRADITIONALLY A MAGNET FOR ANTILDP VOTES LOST ALMOST HALF OF ITS SEATS NO PARTY EMERGED WITH CLEAR CONTROL AND NORMALLY STABLE JAPAN NOW FACES WEEKS OR EVEN MONTHS OF UNFAMILIAR POLITICAL UNCERTAINTY THE JAPANESE PRESS REPORTED MONDAY MORNING THAT PRESSURE IS MOUNTING WITHIN THE LDP ON 73YEAROLD PRIME MINISTER KIICHI MIYAZAWA TO RESIGN TO TAKE RESPONSIBILITY FOR THE UNPRECEDENTED DEFEAT BUT A SMILING MR MIYAZAWA MEETING REPORTERS TODAY AT HIS RESIDENCE SAID HE HAD NO SUCH PLANS AT LEAST FOR NOW I CAN'T IRRESPONSIBLY TALK ABOUT RESIGNING HE SAID WE HAVE TO MAKE SURE THERE WON'T BE PARALYSIS ANALYSTS SAID A RANGE OF POLITICAL SCENARIOS IS POSSIBLE AS THE POWER STRUGGLES WITHIN AND OUTSIDE THE LDP PLAY OUT FROM THE LDP'S LEADING A COALITION OR MINORITY GOVERNMENT TO A FURTHER SPLINTERING OF THE ALREADY DIVIDED PARTY THE NEW GOVERNMENT WILL BE CHOSEN AT THE NEXT SESSION OF PARLIAMENT WHICH COULD CONVENE AS SOON AS THE END OF THE MONTH IN THE SHORT TERM SUCH MANEUVERING WILL OVERSHADOW OTHER PRESSING POLICY MATTERS SUCH AS SPURRING THE NATION'S LAGGING ECONOMY AND PURSUING TRADE AGREEMENTS WITH THE US AND OTHER COUNTRIES IN THE LONG RUN THE NEW POLITICAL PARTIES WHICH CAMPAIGNED ON A PLATFORM OF ELECTORAL REFORM INSISTED THEIR STRONG SHOWING USHERED IN AN ERA OF OPENNESS IN JAPAN'S SCANDALRIDDEN POLITICS THIS IS THE CHANCE FOR BIG CHANGE DECLARED TSUTOMU HATA 57 YEARS OLD THE LEADER OF THE JAPAN RENEWAL PARTY WE SHOULDN'T LET IT SLIP THROUGH OUR FINGERS THE RENEWAL PARTY SPLIT OFF FROM THE LDP LAST MONTH IN A BATTLE OVER POLITICAL REFORM AND SHOWED REMARKABLE STRENGTH IN SUNDAY'S CONTEST MOST VOTERS HOWEVER REMAINED CAUTIOUS ABOUT HOW MUCH CHANGE WILL BE FORTHCOMING MY EXPECTATIONS ARE LOW SAID TOSHINORI KURAOKA A 28YEAROLD OFFICE WORKER AFTER VOTING IN TOKYO FOR A REFORM CANDIDATE NO MATTER WHO YOU ELECT THINGS WON'T CHANGE MUCH DESPITE THE LDP'S GLOOM THE BATTERED PARTY DID BETTER THAN MANY PARTISANS HAD HOPED AFTER MR MIYAZAWA'S GOVERNMENT FELL IN A NOCONFIDENCE VOTE A MONTH AGO THE PARTY FAILED TO SECURE THE 256 SEATS NEEDED FOR A MAJORITY IN THE LOWER HOUSE OF PARLIAMENT BUT IT DID WIN 223 OF THE 511 SEATS AT STAKE ACCORDING TO TELEVISION NETWORK PROJECTIONS MADE EARLY MONDAY THAT IS ABOUT THE SAME NUMBER OF SEATS THAT THE PARTY HELD FOLLOWING LAST MONTH'S DEFECTIONS VOTERS WERE LOYAL TO CONSERVATIVE INCUMBENTS WHETHER THE CANDIDATES LEFT THE LDP OR STAYED SOME LDP OFFICIALS DECLARED THE RESULTS A SIGN OF THE ENDURING UNDERLYING PUBLIC SUPPORT THE PARTY RETAINS PEOPLE WANT CHANGE WITHIN THE FRAMEWORK OF STABILITY SAID SEIROKU KAJIYAMA THE LDP SECRETARYGENERAL INDEED THE LDP REMAINS BY FAR THE LARGEST PARTY IN PARLIAMENT MORE THAN THREE TIMES THE SIZE OF ITS BIGGEST CHALLENGER THAT GIVES THE PARTY THE INSIDE TRACK TO SET UP THE NEW GOVERNMENT DESPITE ITS HUMILIATION LEADERS OF TWO OPPOSITION PARTIES INDICATED THEY WOULD BE OPEN TO THE POSSIBILITY OF JOINING HANDS WITH THE LDP WE'LL HAVE TO THINK CAREFULLY ABOUT THE NEW SITUATION SAID MORIHIRO HOSOKAWA HEAD OF THE JAPAN NEW PARTY WHICH WON 35 SEATS MR HOSOKAWA A FORMER LDP MEMBER FORMED HIS REFORMMINDED PARTY A YEAR AGO HIS PARTY'S SHOWING ESSENTIALLY GIVES IT THE POWER TO CAST A SWING VOTE THAT WILL DETERMINE WHETHER THE LDP OR AN ANTILDP COALITION TAKES CONTROL DURING THE CAMPAIGN MR HOSOKAWA SAID HE WOULDN'T CONSIDER JOINING FORCES WITH EITHER SIDE ON SUNDAY NIGHT HE WAS COY IT'S DIFFICULT TO SAY AT THIS EARLY STAGE WHICH DIRECTION WE SHOULD TAKE MR HOSOKAWA SAID AN LDPLED COALITION PROBABLY WOULD STILL HOBBLE THE PARTY'S ABILITY TO MAKE POLICY CREATING LEGISLATIVE PARALYSIS THE LDP LOST CONTROL OF THE LESSPOWERFUL UPPER HOUSE OF PARLIAMENT IN 1989 AND HAS HAD TO COMPROMISE WITH OTHER PARTIES TO PUSH BILLS THROUGH THE BIGGEST LOSER IN SUNDAY'S ELECTION WAS THE SOCIALIST PARTY WHICH WON ONLY 70 SEATS BARELY HALF ITS TOTAL BEFORE THE ELECTION AND ITS WORST SHOWING SINCE WORLD WAR II IN TOKYO A PARTY STRONGHOLD THE SOCIALISTS HELD ONTO ONLY ONE SEAT ANALYSTS PREDICTED EVEN WORSE FOR THE PARTY IN THE COMING WEEKS SOONER OR LATER THE SOCIALISTS CAN'T HELP BUT SPLIT COMMENTATOR KENZO UCHIDA SAID THE SOCIALISTS HAVE LONG BEEN JAPAN'S LARGEST OPPOSITION PARTY MARKED BY LEFTLEANING POLICIES THAT IN RECENT YEARS SEEMED ANACHRONISTIC THE PARTY GENERALLY GAINED ITS STRENGTH FROM CITIZENS WHO WANTED TO CAST AN ANTILDP VOTE BUT NOW THERE ARE OTHER CREDIBLE OPPOSITION PARTIES AND ON SUNDAY THE SOCIALISTS DISCOVERED THE RAMIFICATIONS OF THAT THE SOCIALISTS WERE THE ONLY CHOICE AKIO TANAKA A 54YEAROLD TECHNICIAN SAID EXPLAINING WHY HE HAD VOTED FOR THE PARTY IN THE PREVIOUS ELECTION IN 1990 THIS TIME HE VOTED FOR THE RENEWAL PARTY THE LDP IS NO GOOD HE SAID WE HAVE TO CHANGE ALL THAT HOWEVER EVEN THE NEW OPPOSITION AND ESPECIALLY THE RENEWAL PARTY CARRIES BAGGAGE FROM THE PAST RENEWAL IS MADE UP OF POLITICIANS WHO UNTIL RECENTLY WERE PART OF THE LDP'S MOST CORRUPT FACTION THE RENEWAL PARTY'S SURPRISING SUCCESS IN SUNDAY'S VOTING ADDING 19 SEATS TO THE 36 IT ALREADY HELD WAS PARTLY THE RESULT OF THE CONSIDERABLE POLITICAL ABILITY OF ITS COFOUNDER ICHIRO OZAWA MR OZAWA ALSO MASTERMINDED THE LDP'S VICTORY IN THE 1990 ELECTION AND WAS A TOP LDP OFFICIAL DURING A PERIOD WHEN PARTY LEADERS ADMITTED THAT THEY TOOK ILLEGAL CAMPAIGN CONTRIBUTIONS MR OZAWA HAS DENIED WRONGDOING BUT ONE TV POLL TAKEN SUNDAY NIGHT SAID 76 OF THE VOTERS STILL FEEL HE HASN'T TAKEN FULL RESPONSIBILITY FOR WHATEVER ROLE HE MIGHT HAVE PLAYED IN LDP SCANDALS VOTER TURNOUT SUNDAY WAS LOW BY JAPANESE STANDARDS ABOUT 67 OF THE 95 MILLION ELIGIBLE VOTERS TURNED OUT DOWN FROM 73 THREE YEARS AGO BY SOME ESTIMATES THAT WAS THE SMALLEST TURNOUT SINCE THE WAR THE NEW PARTIES THAT GOT A BOOST FROM THE VOTERS OFFER A WIDE RANGE OF NEW VISIONS FOR JAPAN A KEY ELEMENT IS THE SAME CONSERVATIVE PROBUSINESS PROUS STANCE THAT HAS BEEN THE HALLMARK OF THE LDP SINCE IT TOOK POWER IN 1955 HOWEVER MR HATA'S PARTY IN PARTICULAR ALSO CALLS FOR A GREATER ROLE BY JAPAN IN INTERNATIONAL AFFAIRS AND GREATER EFFORTS BY THE GOVERNMENT TO IMPROVE LIVING STANDARDS THE CENTRAL ISSUE OF THE CAMPAIGN THOUGH WAS POLITICAL REFORM AND SUNDAY'S RESULTS LEFT THAT ISSUE'S FATE UNCERTAIN LDP LEADERS HAVE LONG BEEN LUKEWARM TO THE IDEA AND MANY REMAINED SO SUNDAY NIGHT YOU HAVE TO THINK ABOUT OVERALL POLITICAL STABILITY SAID RYUTARO HASHIMOTO ONE LDP MEMBER MENTIONED AS A POSSIBLE SUCCESSOR TO MR MIYAZAWA I DON'T THINK WE SHOULD BE THINKING ABOUT REFORM ABOVE ALL ELSE IF THE LDP STAYS IN CONTROL THAT THINKING COULD BLOCK ANY CHANGE IN THE SYSTEM IT COULD ALSO FORCE THE REMAINING PROREFORM ELEMENTS WITHIN THE PARTY TO LEAVE ANALYSTS SAID MR HATA'S RENEWAL PARTY WAS ALREADY WOOING SEVERAL WE RECEIVED A SEVERE JUDGMENT FROM THE PEOPLE DECLARED LDP MEMBER TOSHIKI KAIFU A FORMER PRIME MINISTER AND ANOTHER POSSIBLE SUCCESSOR TO MR MIYAZAWA THIS IS THE VOICE OF THE PEOPLE EXPECTING THE LDP TO CARRY OUT POLITICAL REFORM TOKYO STOCKS FELL MONDAY MORNING ALTHOUGH ANALYSTS SAID THE DROP WAS DUE LESS TO THE ELECTION THAN TO PROFITTAKING FOLLOWING LAST WEEK'S 23 GAIN IN JAPANESE SHARE PRICES THE NIKKEI STOCK AVERAGE DROPPED 5980 POINTS TO CLOSE THE MORNING SESSION AT 2027173 ON MODERATE VOLUME THE RESULT OF THE ELECTION WAS MORE OR LESS AN EXPECTED SITUATION SAID SHIGERU AKIBA OF UBS SECURITIES LTD NOTE THE JAPAN NEW PARTY AND SAKIGAKE SAY THEY INTEND TO MERGE 9307190168 930719 WHO'S NEWS MINORCO MINORCO LUXEMBOURG BEN L KEISLER 35 YEARS OLD FORMERLY VICE PRESIDENT AND GENERAL COUNSEL AT TERRA INDUSTRIES INC WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL OF MINORCO USA INC THE DENVERBASED UNIT OF THIS INTERNATIONAL MINING COMPANY MR KEISLER SUCCEEDS MICHAEL FRICKLAS WHO LEFT TO TAKE A JOB AT ANOTHER COMPANY 9307190167 930719 WHO'S NEWS GENCORP INC GENCORP INC FAIRLAWN OHIO R BYRON PIPES 51 YEARS OLD PRESIDENT OF RENSSELAER POLYTECHNIC INSTITUTE WAS ELECTED A DIRECTOR OF THIS MAKER OF REINFORCED PLASTICS COATED FABRICS AND INDUSTRIAL RUBBER PRODUCTS FOR AUTOMOTIVE APPLICATIONS THE ACTION INCREASES THE COMPANY'S BOARD TO 11 MEMBERS 9307190166 930719 WHO'S NEWS MITSUBISHI BANK LTD MITSUBISHI BANK LTD TOKYO YASUYUKI HIRAI 54 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THE NORTH AMERICAN HEADQUARTERS OF THIS BANK SUCCEEDING TAKESHI YANO 57 WHO WILL OVERSEE THE CORPORATE PLANNING AND PUBLIC RELATIONS DIVISIONS AT THE HEAD OFFICE MR HIRAI HAD BEEN GENERAL MANAGER OF THE BANK'S CORPORATE PLANNING DIVISION IN JAPAN 9307190165 930719 WHO'S NEWS RYAN BECK & CO RYAN BECK & CO WEST ORANGE NJ BEN A PLOTKIN 37 YEARS OLD WAS ELECTED A DIRECTOR OF THIS INVESTMENT BANKING CONCERN INCREASING THE BOARD TO EIGHT MEMBERS MR PLOTKIN IS AN EXECUTIVE VICE PRESIDENT OF RYAN BECK AND PRESIDENT OF ITS COMMUNITY CAPITAL GROUP SUBSIDIARY 9307190164 930719 WHO'S NEWS CONCORD FINANCIAL GROUP INC CONCORD FINANCIAL GROUP INC NEW YORK THIS DISTRIBUTOR OF BANK MUTUAL FUNDS APPOINTED EXECUTIVES TO THREE NEWLY CREATED POSITIONS SUSAN LEA WEST 35 YEARS OLD EXECUTIVE VICE PRESIDENT WAS NAMED CHIEF OPERATING OFFICER DENNIS R SHEEHAN 37 SENIOR VICE PRESIDENT WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND J CHRISTOPHER KLUTCH 35 EXECUTIVE VICE PRESIDENT WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT OF SALES AND BUSINESS DEVELOPMENT 9307190163 930719 INTERNATIONAL ITALY'S FISCAL REVENUE UP MILAN FISCAL REVENUE IN ITALY ROSE 44 TO 144 TRILLION LIRE 9016 BILLION IN THE FIRST FIVE MONTHS OF 1993 COMPARED WITH THE LIKE YEAREARLIER PERIOD THE FINANCE MINISTRY ANNOUNCED REVENUE IN THE FIRST FIVE MONTHS OF LAST YEAR TOTALED 138 TRILLION LIRE 9307190162 930719 BULGARIA FAILS TO MEET IMF TERMS ON LOAN FORCING POSTPONEMENT SPECIAL TO THE WALL STREET JOURNAL SOFIA BULGARIA BULGARIA HAS FAILED TO MEET THE CONDITIONS SET WITH THE INTERNATIONAL MONETARY FUND FOR A STANDBY LOAN AGREEMENT FORCING ITS POSTPONEMENT FINANCE MINISTER STOYAN ALEXANDROV SAID HE SAID THE SIGNING WOULD HAVE TO BE PUT OFF UNTIL BULGARIA IS READY AND CONFIDENT THAT IT WILL BE ABLE TO FULFILL IT AN IMF REPRESENTATIVE ENDING TWO WEEKS OF TALKS WITH BULGARIAN OFFICIALS SAID A NEW PACT WHICH WOULD HAVE GIVEN THE DEBTRIDDEN COUNTRY ACCESS TO FRESH CREDITS WAS BEING POSTPONED INDEFINITELY THE IMF IS REQUIRING ADOPTION OF A 20 VALUEADDED TAX TO BOOST REVENUE PASSAGE OF A NEW BANKRUPTCY LAW AND FASTER ACTION ON PRIVATIZING STATEOWNED INDUSTRIES CONDITIONS THE COUNTRY SO FAR HAS BEEN UNABLE TO MEET BULGARIA'S EARLIER STANDBY AGREEMENTS WITH THE IMF WORTH 560 MILLION WERE IN EFFECT UNTIL MARCH 1993 THE IMF REPRESENTATIVE EXPRESSED CONCERN THAT PARLIAMENT IS PLANNING TO VOTE DOWN THE VALUEADDED TAX RATE WHICH HE SAID WOULD POSE A NUMBER OF PROBLEMS TO THE 1994 BUDGET BULGARIA SORELY NEEDS FOREIGN AID AND INVESTMENT TO HELP CONVERT ITS AILING COMMUNISTERA COMMAND ECONOMY TO A MARKET SYSTEM PRODUCTION LAST YEAR PLUMMETED 22 WHILE UNEMPLOYMENT ROSE TO 15 AND INFLATION SOARED TO 80 THE COUNTRY ALSO IS STRUGGLING TO MEET PAYMENTS ON ABOUT 1295 BILLION OF FOREIGN DEBT RUN UP BY THE OLD COMMUNIST REGIME OF THAT ABOUT 927 BILLION IS OWED TO MORE THAN 300 COMMERCIAL BANKS THE REST IS DEBT TO GOVERNMENTS 9307190161 930719 WHO'S NEWS DAMES & MOORE DAMES & MOORE LOS ANGELES ARTHUR C DARROW 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AND WILL BECOME CHIEF EXECUTIVE OFFICER AT THE END OF 1994 MR DARROW HAD BEEN SENIOR VICE PRESIDENT WESTERN NORTH AMERICA DIVISION OF THE ENGINEERING AND ENVIRONMENTAL CONSULTING CONCERN GEORGE D LEAL 59 CURRENTLY CHAIRMAN PRESIDENT AND CEO WILL RELINQUISH HIS POST AS PRESIDENT AUG 9 AND HIS POST AS CEO AT THE END OF 1994 HE WILL REMAIN AS CHAIRMAN HENRY KLEHN JR 56 WAS NAMED EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT HE WAS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR DARROW'S SUCCESSOR HASN'T BEEN ANNOUNCED 9307190160 930719 WHO'S NEWS NATIONAL HEALTH LABORATORIES INC NATIONAL HEALTH LABORATORIES INC LA JOLLA CALIF MICHAEL L JEUB WAS NAMED EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF THIS CLINICAL LABORATORY CONCERN HE SUCCEEDS DAVID C FLAUGH 46 YEARS OLD WHO CONTINUES AS CHIEF OPERATING OFFICER AND SENIOR EXECUTIVE VICE PRESIDENT MR JEUB 50 WAS PRESIDENT CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER OF MEDICAL IMAGING CENTERS OF AMERICA INC 9307190159 930719 CANADA TRADE SURPLUS FELL TO 4775 MILLION IN MAY EXPORTS OFF OTTAWA CANADA'S TRADE SURPLUS FELL TO 612 MILLION CANADIAN DOLLARS US4775 MILLION IN MAY FROM C120 BILLION IN APRIL STATISTICS CANADA A GOVERNMENT AGENCY SAID EXPORTS FELL 2 IN MAY TO C1451 BILLION WHILE IMPORTS ROSE 22 TO C1390 BILLION THE US TOOK 81 OF CANADA'S EXPORTS IN MAY AND SUPPLIED 743 OF CANADA'S IMPORTS CANADA'S TRADE SURPLUS WITH THE US FELL TO C143 BILLION FROM C222 BILLION IN THE JANUARY TO MAY PERIOD CANADA'S TRADE SURPLUS WAS C498 BILLION UP FROM A SURPLUS OF C304 BILLION A YEAR EARLIER SEPARATELY STATISTICS CANADA REPORTED THAT MANUFACTURERS' SHIPMENTS FELL 12 IN MAY FROM APRIL THE SECOND CONSECUTIVE MONTHLY DECLINE IT ATTRIBUTED MOST OF THE DROP TO LOWER AUTO INDUSTRY SHIPMENTS UNFILLED ORDERS DECLINED IN MAY FOR THE SECOND CONSECUTIVE MONTH DROPPING 16 FROM APRIL 9307190158 930719 TREASURY WILL OFFER 1525 BILLION OF BILLS TO RAISE 525 MILLION WASHINGTON THE TREASURY PLANS TO SELL 1525 BILLION IN 52WEEK BILLS THURSDAY TO REDEEM 1472 BILLION IN MATURING BILLS AND RAISE 525 MILLION IN FRESH CASH THE SALE AMOUNT IS UNCHANGED FROM THE PREVIOUS SALE JUNE 24 THE BILLS WILL BE DATED JULY 29 AND WILL MATURE JULY 28 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EASTERN TIME THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT THE BILLS AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 CARRY CUSIP NUMBER 912794L51 9307190157 930719 JAPAN PLANS PAYMENT TO FINANCE PHILIPPINE EMERGENCY NETWORK SPECIAL TO THE WALL STREET JOURNAL MANILA PHILIPPINES THE JAPANESE GOVERNMENT SIGNED AN AGREEMENT WITH THE PHILIPPINES TO PROVIDE A GRANT OF 785 MILLION YEN 72 MILLION FOR AN EMERGENCYTELECOMMUNICATIONS PROJECT PHILIPPINE TRANSPORTATION AND COMMUNICATIONS SECRETARY JESUS GARCIA SAID THE AGREEMENT WAS SIGNED BY PHILIPPINE FOREIGN AFFAIRS SECRETARY ROBERTO ROMULO AND JAPANESE AMBASSADOR HIROKAZU ARAI ACCORDING TO MR GARCIA THE AGREEMENT WILL FILL THE NEED FOR A TELECOMMUNICATIONS SYSTEM IN THE PHILIPPINES THAT CAN FUNCTION IN TIMES OF EMERGENCY THE PROJECT WILL COVER THE ESTABLISHMENT OF A CENTRAL STATION IN MANILA AND THE SUPPLY OF SMALL TRANSPORTABLE TERMINALS TO PROVIDE SATELLITE LINKS IN 32 LOCATIONS IN MANILA AND ELSEWHERE IN THE COUNTRY 9307190156 930719 FINANCING BUSINESS SANIFILL INC SANIFILL INC SAID IT COMPLETED THE SALE OF 500000 COMMON SHARES IN A PUBLIC OFFERING AT 1750 APIECE THE NONHAZARDOUS WASTEDISPOSAL COMPANY SAID PROCEEDS WILL BE USED FOR ACQUISITION AND CAPITAL EXPENDITURE PROGRAMS AND FOR GENERAL CORPORATE PURPOSES THE HOUSTON CONCERN HAD AN AVERAGE OF 144 MILLION SHARES OUTSTANDING IN THE QUARTER ENDED MARCH 31 9307190155 930719 US FIRMS' MERGERS AND ACQUISITIONS ROSE 40 IN PERIOD BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE TOTAL VALUE OF MERGERS AND ACQUISITIONS INVOLVING AT LEAST ONE US COMPANY ROSE 40 IN THE SECOND QUARTER THOUGH THE NUMBER OF TRANSACTIONS STAYED VIRTUALLY FLAT ACCORDING TO A STUDY BY MERRILL LYNCH & CO'S BUSINESS ADVISORY SERVICES THE COMBINED VALUE OF PROPOSED MERGERS AND ACQUISITIONS IN WHICH A PRICE WAS DISCLOSED ROSE TO 332 BILLION IN THE QUARTER FROM 238 BILLION IN THE 1992 QUARTER THERE WERE 681 SUCH TRANSACTIONS IN THE QUARTER DOWN 1 IN THE FIRST HALF OF 1993 THE TOTAL VALUE OF TRANSACTIONS WAS UP 9 TO 509 BILLION THE NUMBER OF TRANSACTIONS WAS DOWN 3 TO 1228 TRANSACTIONS IN THE SIX MONTHS TRANSACTIONS BETWEEN US AND FOREIGN COMPANIES MADE UP 21 OF THE TOTAL IN THE FIRST HALF OF 1993 THE TOTAL VALUE OF FOREIGN ACQUISITIONS BY US CORPORATIONS INCREASED 32 TO 5 BILLION THE NUMBER OF SUCH TRANSACTIONS DROPPED 16 TO 179 IN CONTRAST THE NUMBER OF FOREIGN BUYERS OF US COMPANIES IN THE SIX MONTHS ROSE 5 BUT THE TOTAL VALUE OF TRANSACTIONS IN WHICH THE PURCHASE PRICE WAS DISCLOSED ROSE 64 TO 59 BILLION FROM 36 BILLION IN THE SAME PERIOD LAST YEAR THE LARGEST DEAL INVOLVING A FOREIGN COMPANY WAS BRITISH TELECOMMUNICATIONS PLC'S PROPOSED ACQUISITION OF 151 OF MCI COMMUNICATIONS CORP VALUED AT 34 BILLION THE LARGEST TRANSACTION OVERALL IN THE FIRST HALF OF 1993 WAS THE PROPOSED MERGER OF PRICE CO INTO COSTCO WHOLESALE CORP VALUED AT 46 BILLION THE MEDIAN TRANSACTION PRICE IN THE FIRST HALF ADVANCED 32 TO 285 MILLION FROM 216 MILLION IN THE FIRST HALF LAST YEAR THE AVERAGE PRICE WAS UP 4 TO 1095 MILLION NINE DEALS WERE VALUED AT MORE THAN 1 BILLION IN THE FIRST HALF OF 1993 THOSE VALUED AT MORE THAN 100 MILLION NUMBERED 100 DEALS VALUED AT LESS THAN 50 MILLION WERE FLAT AT 300 TRANSACTIONS BRITISH AND CANADIAN ENTITIES WERE THE MOST ACTIVE BANKING AND FINANCE CONTINUED TO BE THE MOST ACTIVE INDUSTRY WITH 128 DEALS VALUED AT 8 BILLION THE WHOLESALEANDDISTRIBUTION INDUSTRY AND HEALTHSERVICES INDUSTRY ACCOUNTED FOR 93 TRANSACTIONS EACH VALUED AT 57 BILLION AND 44 BILLION RESPECTIVELY 9307190154 930719 GM BACKS OFF PLAN FOR THE US TO FUND WORKER VACATIONS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP UNDER FIRE FROM FEDERAL OFFICIALS BACKED AWAY FROM AN ATTEMPT TO HIT US TAXPAYERS WITH THE 150 MILLION BILL TO COVER SUMMER VACATIONS FOR SOME 250000 HOURLY WORKERS INSTEAD GM IS NOW URGING WORKERS TO APPLY FOR STATE UNEMPLOYMENT INSURANCE DURING GM'S TWOWEEK COMPANYWIDE SUMMER CLOSING WHICH BEGINS TODAY THE SWITCH COULD COST GM AS MUCH AS 150 MILLION IN ADDITIONAL PAYMENTS OVER A PERIOD OF YEARS BECAUSE STATES REQUIRE COMPANIES TO REIMBURSE THEM EVENTUALLY FOR JOBLESS BENEFITS WHILE THE FEDERAL GOVERNMENT DOESN'T GM'S PROBLEM STEMS FROM THE REFUSAL BY GM EMPLOYEES REPRESENTED BY THE UNITED AUTO WORKERS UNION TO COOPERATE WITH A MANAGEMENT EFFORT TO CUT COSTS BY HAVING ALL WORKERS TAKE VACATIONS DURING THE SAME TWOWEEK PERIOD IN LATE JULY UAW OFFICIALS SAY GM DIDN'T NEGOTIATE A COMPANYWIDE VACATION INTO THE 1990 LABOR AGREEMENT AND THUS UAW WORKERS ARE FREE TO COLLECT UNEMPLOYMENT PAY DURING THE CLOSING THEN TAKE THEIR PAID VACATIONS AT ANOTHER TIME GM'S DECISION TO THROW IN THE TOWEL IN ITS EFFORT TO SHIFT THE COST TO A FEDERAL EMERGENCY UNEMPLOYMENT PROGRAM AVOIDS A POTENTIALLY EMBARRASSING CONTROVERSY AT A TIME WHEN THE AUTO MAKER HAS MORE IMPORTANT FISH TO FRY WITH THE CLINTON ADMINISTRATION AMONG THEM THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HAS ASKED GM TO RECALL SOME 47 MILLION PICKUP TRUCKS TO REPAIR FUEL TANKS REGULATORS FEEL ARE EXCESSIVELY PRONE TO FIRES AND LEAKS GM HAS ARGUED THE TRUCKS ARE SAFE AND IS FIGHTING A RECALL GM'S ATTEMPT TO USE FEDERAL FUNDS TO HELP PAY FOR ITS SUMMER CLOSING FIRST DISCLOSED JULY 9 BY THE DETROIT FREE PRESS WAS CRITICIZED STRONGLY LAST WEEK BY THE CLINTON ADMINISTRATION AND BY DAN ROSTENKOWSKI D ILL CHAIRMAN OF THE INFLUENTIAL HOUSE WAYS AND MEANS COMMITTEE ON FRIDAY GM ISSUED A STATEMENT SAYING THE CAR MAKER HAD SWITCHED ITS POSITION AFTER GETTING FURTHER CLARIFICATION FROM CONGRESS WE HAVE NOW LEARNED FROM HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI THAT THIS USE OF FEDERAL EMERGENCY JOBLESS FUNDS WOULD BE INCONSISTENT WITH THE INTENT OF CONGRESS SAID A JOINT STATEMENT FROM GERALD A KNECHTEL GM'S TOP LABOR NEGOTIATOR AND STEPHEN P YOKICH HEAD OF THE UAW'S GM DEPARTMENT LABOR SECRETARY ROBERT REICH AND REP ROSTENKOWSKI WOULD LIKE A LEGISLATIVE CORRECTION TO THE FEDERAL EMERGENCY UNEMPLOYMENT COMPENSATION LOOPHOLE THAT WOULD HAVE ALLOWED GM TO AVOID PAYING FOR STATE UNEMPLOYMENT BENEFITS FOR THE WORKERS BUT WITH THE LEGISLATIVE CALENDER JAMMED WITH SUCH ISSUES AS TAXES TRADE AND HEALTH CARE IT IS UNLIKELY THAT MUCH CAN BE DONE BEFORE THE EMERGENCY FEDERAL AID EXPIRES IN OCTOBER FORD MOTOR CO HAS CLOSED ALL ITS US MANUFACTURING PLANTS FOR TWO WEEKS EACH SUMMER FOR YEARS BUT UNDER THE FORD LABOR CONTRACT UAW WORKERS ARE FORCED TO TAKE PAID VACATION DURING THE CLOSING IN APRIL GM AND THE UAW SENT A JOINT LETTER TO WORKERS ASKING THEM TO FILE FOR FEDERAL UNEMPLOYMENT INSURANCE WHICH AMOUNTS TO ABOUT 295 A WEEK PER WORKER IN MICHIGAN 9307190153 930719 MAY STEEL IMPORTS ROSE 29 TO 1467000 TONS WASHINGTON US STEEL IMPORTS IN MAY INCREASED 24 FROM APRIL AND WERE UP 29 FROM MAY 1992 MAY IMPORTS TOTALED 1467000 TONS COMPARED WITH 1186000 TONS IN APRIL AND 1425000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS MAY IMPORTS REPRESENTED 174 OF CONSUMPTION UP FROM 146 IN APRIL AND DOWN SLIGHTLY FROM 183 A YEAR EARLIER STEEL IMPORTS FOR THE FIRST FIVE MONTHS OF 1993 TOTALED 6406000 TONS DOWN 98 FROM 7105000 A YEAR EARLIER IMPORT PENETRATION FOR THE FIRST FIVE MONTHS OF 1993 WAS 156 OF THE MARKET COMPARED WITH 18 A YEAR EARLIER US EXPORTS IN MAY TOTALED 320000 TONS DOWN 23 FROM 416000 TONS IN APRIL AND DOWN 13 FROM 369000 TONS A YEAR EARLIER IN THE FIRST FIVE MONTHS OF THE YEAR EXPORTS TOTALED 1785000 TONS DOWN 63 FROM 1904000 TONS A YEAR EARLIER 9307190152 930719 EAST EUROPEANS ADJUST TO WESTERN ADS INFORMATION AFTER YEARS OF PROPAGANDA BY DAN MICHAELS AND SHAILAGH MURRAY SPECIAL TO THE WALL STREET JOURNAL BLUDGEONED FOR DECADES BY HAMHANDED PROPAGANDA EAST EUROPEANS ARE EATING UP WESTERNSTYLE ADVERTISING A RECENT SURVEY BY AD AGENCY LEO BURNETT'S PRAGUE OFFICE IS TYPICAL ASSEMBLING A 500PERSON FOCUS GROUP THE AGENCY FOUND 89 BELIEVED ADS GIVE VALUABLE INFORMATION ESPECIALLY ABOUT NEW PRODUCTS NEARLY 60 SAID THEY USE THE INFORMATION IN DECIDING WHAT TO BUY ALL OVER THE REGION AGENCY HEADS REPORT SIMILAR FINDINGS BRAND AWARENESS SOARING WITHIN WEEKS OF A PRODUCT'S LAUNCH SALES FIGURES LEAPING ACCORDINGLY AND SO ON BRIAN DUNNION HEAD OF SAATCHI & SAATCHI ADVERTISING IN WARSAW TELLS THE STORY OF AN OFFICE CLEANING WOMAN WHO CARRIED SIX DIFFERENT CLEANSERS BECAUSE SHE HAD SEEN THEM ALL ADVERTISED PEOPLE LIKE ADVERTISING HERE MR DUNNION SAYS THEY SEE IT AS USEFUL TO GET INFORMATION ON THE NEW CHOICES AVAILABLE OBSERVES MAREK JANICKI MANAGING DIRECTOR OF ITIMCCANNERICKSON IN WARSAW FOR THE FIRST TIME CONSUMERS ARE BEING APPROACHED CARESSED BEGGED BY PRODUCERS IN THE PAST PRODUCERS WERE KING NOW THE CONSUMER IS KING PEOPLE ARE HAPPY SOMEONE IS TRYING TO GET THEIR ATTENTION GETTING THAT ATTENTION HOWEVER IS LIKE JAZZ IMPROVISATION THERE ARE NO RULES BUT WHEN IT WORKS THE AUDIENCE GOES WILD PEOPLE HERE WERE NOT BROUGHT UP SURROUNDED BY MARKETING THE LANGUAGE CONVENTIONS IMPLICIT AND UNDERSTOOD IN THE WEST ARE NEW HERE SO ADVERTISING TENDS TO BE LESS BASED ON IMAGE MR DUNNION SAYS THE NEED IS MORE FOR INFORMATION MR DUNNION SAYS THIS CREATES A MARKETING WINDOW OF OPPORTUNITY THROUGHOUT EASTERN EUROPE BECAUSE NO PECKING ORDER AMONG BRANDS HAS BEEN ESTABLISHED CONSUMERS ARE NOT WELL ACQUAINTED WITH BRANDS YET SAYS MR JANICKI OF MCCANN SO YOU HAVE TO EXPLAIN BRANDS AND THAT SOME ARE WORTH A PREMIUM HE SAYS THAT SECONDTIER BRANDS CAN ALSO USE CONSUMERS' UNFAMILIARITY TO LEAPFROG MARKET LEADERS HE CITED THE CASE OF A MINOR GREEK CHOCOLATE MAKER BINGO THAT BOUGHT DISPROPORTIONATE MARKET SHARE SIMPLY BY GETTING IN EARLY AND BLITZING THE AIRWAVES BUT MR JANICKI ALSO NOTES THAT CONSUMERS IN THE FORMER COMMUNIST WORLD AREN'T EASILY PERSUADED OBVIOUSLY THEY KNOW PROPAGANDA HE SAYS WRYLY THE SAME LEO BURNETT PRAGUE SURVEY FOUND NEARLY HALF OF THE PEOPLE WHO SEE ADS AS INFORMATIONAL ALSO THINK ADS ARE MISLEADING AND WHEN CONSUMERS HERE ARE MISJUDGED THINGS CAN GO AWRY ESPECIALLY NOTORIOUS IS ONE PROCTER & GAMBLE CO AD TOUTING THE TIMESAVING WONDERS OF ITS SHAMPOO AND CONDITIONER WASH & GO THE REALITY IS THAT FEW CZECHS POLES OR THEIR NEIGHBORS HAD EVER HEARD OF CONDITIONER BEFORE THEY STARTED MAKING FUN OF THE MOTTO TAKE TWO BOTTLES IN THE SHOWER NOT ME I JUST WANT TO WASH MY HAIR AND GO FOR A WHILE THE PHRASE WAS THE GUARANTEED ANSWER TO ANY QUESTION IN CZECHOSLOVAKIA FROM WHAT'S FOR DINNER TO SHOULD THE COUNTRY HAVE A BIG ARMY NOT ME AND POLISH BARS SERVE A DRINK DERISIVELY DUBBED WASH & GO A SHOT OF VODKA WITH A WATER CHASER FROM YEARS OF EXPOSURE TO PROPAGANDA SAYS MR JANICKI PEOPLE HAVE A CERTAIN MECHANISM THAT ALLOWS THEM TO WATCH ADS AND NOT BE PERSUADED AS ADVERTISERS TELL IT THE KEY TO A SUCCESSFUL CAMPAIGN IS TAKING NOTHING FOR GRANTED EVEN THE BESTKNOWN WESTERN BRANDS FIRST HAVE TO BE INTRODUCED TO PEOPLE HENCE BAREBONES ADS SHOWING JUST A BIG MAC OR AN ICY BOTTLE OF PEPSICOLA AND THE REGION STILL HAS THE CAPACITY FOR PLEASANT SURPRISES TAKE LEO BURNETT'S CZECH CAMPAIGN FOR REFLEX A HIP GENERALINTEREST WEEKLY MAGAZINE TO SET REFLEX APART FROM THE MASSIVE POOL OF POSTREVOLUTION MAGAZINES THE AGENCY LAST YEAR LAUNCHED A BILLBOARD CAMPAIGN WITH THE SLOGAN 34 MORE ABOUT YOU OVER HUGE MIRRORS TO ILLUSTRATE THE POINT AFTER TWO WEEKS HOWEVER ALL THE MIRRORS HAD BEEN STOLEN RATHER THAN ORDER NEW ONES LEO BURNETT ANNOUNCED A CONTEST FOR PEOPLE TO DESIGN NEW BILLBOARDS FOR CASH AWARDS OF 100000 KORUNAS 3460 EACH THE RESPONSE WAS OVERWHELMING WITH 270 TOPNOTCH ENTRIES ALL OF THEM VIVID AND CATCHY AT FIRST WE THOUGHT WE'D HAVE TO GO OUT AND FIND PEOPLE TO TAKE PART SAYS JOSEF HAVELKA THE AGENCY'S MANAGING DIRECTOR IN PRAGUE BUT IT WAS INCREDIBLE POLAND'S MARKETERS ALL NOTE THE IMPORTANCE OF BEING POLISH WE OBSERVE THAT IT IS WORTH BEING MORE LOCAL MORE POLISH IN ADS PEOPLE RESPOND FAR BETTER SAYS JACEK SLOTALA CHAIRMAN OF PARINTEXJ WALTER THOMPSON IN WARSAW IDEALLY THIS MEANS CREATING ADS LOCALLY OR AT LEAST CUSTOMIZING EUROPEWIDE CAMPAIGNS TO GIVE THEM A POLISH FEEL CONSUMERS ARE SENSITIVE TO ADAPTATION CAUTIONS MCCANN'S CREATIVE DIRECTOR LESZEK STAFIEJ THEY DON'T LIKE IT WHILE CENTRAL EUROPEAN MARKETING REQUIRES CAREFUL ATTENTION TO LOCAL PROCLIVITIES BASIC DIFFERENCES FROM THE WEST ARE SHRINKING MR SLOTALA SAYS THE REGION IS CHANGING MUCH MORE RAPIDLY THAN ONE WOULD EXPECT AND MR STAFIEJ OBSERVES THAT WE'RE ABOUT TO PASS THE STAGE WHERE CONSUMERS ARE JUST INTERESTED IN INFORMATION THEY'RE NOW LOOKING FOR SOMETHING DISTINCTIVE THE PECKING ORDER OF WHICH SAATCHI'S MR DUNNION SPEAKS IS EMERGING SO WHAT DOES THISLL MEAN STRATEGICALLY FOR MARKETERS IN THE REGION THE WINDOW OF OPPORTUNITY IS CLOSING WARNS MR DUNNION 9307190151 930719 CLINTON FILLS POSTS AT EPA AND ENERGY DEPARTMENT WASHINGTON PRESIDENT CLINTON FILLED SEVEN TOP POSITIONS AT THE ENVIRONMENTAL PROTECTION AGENCY AND THE ENERGY DEPARTMENT AT THE EPA THE PRESIDENT TAPPED FOUR ASSISTANT ADMINISTRATORS THEY ARE JONATHAN CANNON WHO HAS HELD A NUMBER OF EPA JOBS SINCE 1987 AS ASSISTANT ADMINISTRATOR FOR ADMINISTRATION AND RESOURCES MANAGEMENT ELLIOT LAWS A PARTNER AT PATTON BOGGS & BLOW A WASHINGTON DC LAW FIRM FOR SOLID WASTE AND EMERGENCY RESPONSE MARY NICHOLS AN ATTORNEY AT THE NATURAL RESOURCES DEFENSE COUNCIL FOR AIR AND RADIATION AND ROBERT PERCIASEPE MARYLAND'S SECRETARY OF THE ENVIRONMENT FOR WATER MR CLINTON ALSO SELECTED SHELLY METZENBAUM WHO HAS WORKED IN THE MASSACHUSETTS EXECUTIVE OFFICE OF ENVIRONMENTAL AFFAIRS TO BE ASSOCIATE ADMINISTRATOR FOR REGIONAL OPERATIONS AND STATE AND LOCAL RELATIONS SHE IS THE DAUGHTER OF SEN HOWARD METZENBAUM D OHIO AT THE ENERGY DEPARTMENT MARTHA KREBS WHO WORKS AT THE AGENCY'S LAWRENCE BERKELEY LABORATORY IS TO BECOME DIRECTOR OF THE OFFICE OF ENERGY RESEARCH MR CLINTON SELECTED CORLIS SMITH MOODY WHO HAS WORKED AT NORTHERN STATES POWER CO AS DIRECTOR OF THE OFFICE OF ECONOMIC IMPACT AND DIVERSITY ALL OF THE NOMINATIONS EXCEPT THE ASSOCIATE EPA ADMINISTRATOR ARE SUBJECT TO SENATE CONFIRMATION 9307190150 930719 INTERNATIONAL DUTCH UNEMPLOYMENT STEADY THE HAGUE REGISTERED UNEMPLOYMENT IN THE NETHERLANDS REMAINED STEADY IN THE SECOND QUARTER OF 1993 COMPARED WITH THE THREEMONTH PERIOD ENDED IN MAY BUT JOBLESSNESS WAS UP A SUBSTANTIAL 73000 OR 25 FROM THE SECOND QUARTER OF 1992 THE DUTCH CENTRAL BUREAU FOR STATISTICS SAID 9307190149 930719 HONG KONG UNEMPLOYMENT HONG KONG HONG KONG'S PROVISIONAL UNEMPLOYMENT RATE EDGED DOWN TO 22 OF THE WORK FORCE IN THE APRILTHROUGHJUNE SPAN FROM 23 IN THE PREVIOUS THREEMONTH PERIOD THE GOVERNMENT SAID 9307190148 930719 MEXICO'S TRADE DEFICIT NARROWS MEXICO CITY MEXICO'S TRADE DEFICIT TOTALED 107 BILLION DURING MAY DOWN 183 FROM THE THE YEAREARLIER MONTH REPORTED THE FINANCE SECRETARIAT THIS IS THE SECOND CONSECUTIVE MONTH THAT THE TRADE DEFICIT SHOWED A NARROWING YEARTOYEAR RATE DESPITE DECLINING PETROLEUM EXPORT REVENUE IN MAY THOUGH THE FIGURES WERE NOT GIVEN THE TRADE DEFICIT IS ESTIMATED TO BE 577 BILLION FOR THE FIRST FIVE MONTHS OF 1993 9307190147 930719 INTERNATIONAL RUBLE GAINS AGAINST DOLLAR MOSCOW THE RUBLE GAINED IN VALUE FRIDAY AGAINST THE DOLLAR CLOSING AT 1020 RUBLES TO THE DOLLAR ON THE MOSCOW INTERBANK CURRENCY EXCHANGE IN THURSDAY'S SESSION THE RUBLE WAS AT 1025 TO THE DOLLAR VOLUME TRADED WAS 929 MILLION WITH 54 BANKS PARTICIPATING 9307190146 930719 SALOMON HELPS LATIN ISSUE RISE FROM JUNK PILE BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THIS WEEK SALOMON BROTHERS PLANS ON SELLING ONE OF THE YEAR'S LARGEST AND MOSTDEBATED CORPORATE DEBT DEALS A BLOCKBUSTER 1 BILLION OFFERING FOR A US ARM OF A VENEZUELAN OIL COMPANY AND IN THE DEAL THE SALOMON INC UNIT HAS PULLED OFF THE UNTHINKABLE THIS GIANT NOTE ISSUE WITH SUBSTANTIAL EXPOSURE TO VENEZUELA HAS BEEN RATED INVESTMENTGRADE BY MOODY'S INVESTORS SERVICE INC IT'S A CONTROVERSIAL OPINION STANDARD & POOR'S CORP ASSIGNED A JUNK RATING ISSUING THE DEBT WILL BE PDV AMERICA INC A HOLDING COMPANY THAT OPERATES THE CITGO PETROLEUM BUSINESS IN THE US FOR THE STATEOWNED OIL GIANT PETROLEOS DE VENEZUELA SA OR PEDEVESA PDV PLANS TO SELL 500 MILLION OF 10YEAR NOTES AND 250 MILLION EACH OF FIVE AND SEVENYEAR DEBT SALOMON WILL TAKE AN AGGRESSIVE STAND IN THE DEAL LEADING THE GIANT UNDERWRITING BY ITSELF WITHOUT A COMANAGER INVESTORS ARE EXPECTING YIELDS OF ROUGHLY 77 TO 82 FOR THE 10YEAR NOTES A SLIM 20 TO 25 PERCENTAGE POINTS MORE THAN COMPARABLE US TREASURYS DEMAND FOR THE ISSUE COULD BE BRISK BECAUSE YIELDS ARE EVEN LOWER ELSEWHERE THE PDV NOTES WILL BE LISTED ON THE NEW YORK STOCK EXCHANGE MOODY'S AS A MATTER OF PRACTICE NEVER GIVES DOLLARDENOMINATED CORPORATE DEBT A HIGHER RATING THAN THE HOME COUNTRY BUT BECAUSE OF THE WAY SALOMON STRUCTURED THE NOTES BOTH MOODY'S AND DUFF & PHELPS RECENTLY GAVE THE PDV AMERICA DEBT LOWLEVEL INVESTMENTGRADE RATINGS OF BAA3 AND TRIPLEBMINUS RESPECTIVELY DISSENTING WAS S&P WHICH SLAPPED A DOUBLEB JUNK RATING ON THE ISSUE PERHAPS NO OTHER FIRM ON WALL STREET HAS EXPLORED AND WRITTEN ABOUT THE LATIN AMERICAN CREDITRISK QUESTION AS THOROUGHLY AS SALOMON BROTHERS IN ITS RESEARCH SALOMON HAS ARGUED THAT THE QUALITY OF SOME LATIN CREDITS IS BETTER THAN THEIR RATINGS WOULD SUGGEST VENEZUELA WOULD BE A CHALLENGING PLACE TO MAKE THAT ARGUMENT AS EARLY AS 1902 EUROPEAN NAVIES BLOCKADED AND FIRED ON VENEZUELA IN A DISPUTE OVER A DEFAULT IN THE 1980S VENEZUELA RESTRUCTURED SOME 21 BILLION IN BANK DEBT SEVERAL TIMES BUT NOW THROUGH A SPECIAL STRUCTURE SALOMON HAS MANAGED TO PRY THE PDV AMERICA NOTES AWAY FROM VENEZUELA'S JUNK RATING AT LEAST IN MOODY'S OPINION IN THE DEAL SALOMON IS INVITING INVESTORS TO ACCEPT A HYBRID TWOCOUNTRY RISK THAT HAS LEFT MANY BOND BUYERS BEMUSED ARE THE NOTES VENEZUELAN JUNK OR SOMETHING BETTER THE QUESTION HAS BIG IMPLICATIONS FOR THE DEBT'S PRICING ORDINARILY BOND BUYERS LIKE TO PICK UP VENEZUELAN CORPORATES AT A YIELD AROUND 30 PERCENTAGE POINTS ABOVE THE CORRESPONDING US TREASURY DEBT I DON'T THINK IT IS CLEAR WHAT RISK YOU ARE TAKING HERE SAYS WAYNE LYSKI SENIOR VICE PRESIDENT AT ALLIANCE CAPITAL MANAGEMENT LP IN NEW YORK MARK ARNOLD CHIEF OPERATING OFFICER AT BEA ASSOCIATES A NEW YORK INVESTMENT FIRM SAYS WE VIEW IT AS A COMBINATION VENEZUELAN RISK AND CITGO PETROLEUM RISK BUT IN THE END LARGELY VENEZUELAN RISK HERE'S WHAT THE BOND BUYERS AND RATING SERVICES ARE WRESTLING WITH PDV AMERICA HAS 37 BILLION IN US ASSETS CHIEFLY REFINING AND MARKETING OPERATIONS OF CITGO PETROLEUM THE CITGO REFINERS ARE SET UP TO PROCESS HIGHSULFUR CRUDE OIL PRODUCED BY VENEZUELA THE US ASSETS OF PDV AMERICA STAND BEHIND THE NOTES AND COULD SERVICE THE DEBT FOR A WHILE BY MAKING INTEREST PAYMENTS IF NECESSARY THE DEBT ISSUES WILL BE SENIOR UNSECURED OBLIGATIONS OF PDV AMERICA EVEN SO BOND BUYERS ARE HAPPY TO SEE SOME ASSETS ON US SOIL THERE'S POLITICAL RISK IN VENEZUELA BUT YOU STILL HAVE THE CITGO OPERATIONS BACKING UP THE BONDHOLDERS SAYS ROBERT K CITRONE MANAGER OF FIDELITY INVESTMENTS' NEW MARKETS INCOME FUND BUT GET THIS AS SOON AS PDV AMERICA GETS THE PROCEEDS FROM THE DEBT OFFERING IT WILL TURN AROUND AND PITCH THE CASH TO PARENT PEDEVESA IN TURN PDV AMERICA WILL GET SOMETHING THE PROSPECTUS CALLS MIRROR BONDS THAT WILL MATCH THE MATURITIES AND COUPONS OF THE PDV AMERICA ISSUE SO ULTIMATELY CARACASBASED PEDEVESA THE PARENT GETS THE 1 BILLION AND PAYS THE INTEREST ON THE PDV AMERICA DEBT MOST BONDHOLDERS SEE THEIR JOB AS CLIPPING A COUPON NOT WORRYING ABOUT HOW THEIR BONDS ARE SECURED CITGO ASSETS OR NOT SOME CONCLUDE THAT THE BONDS ARE VENEZUELAN JUNK BECAUSE THE INTEREST PAYMENTS COME FROM CARACAS IT IS TRULY VENEZUELAN RISK SAYS ASHWIN VASAN INTERNATIONAL FIXEDINCOME ANALYST AT OPPENHEIMER MANAGEMENT CORP HE CORRECTLY NOTES THAT THE CITGO ASSETS AREN'T EXPLICIT COLLATERAL AGAINST THE BONDS' PRINCIPAL IT IS VERY NEBULOUS TERRITORY HE ADDS WHETHER IT IS A GOOD CREDIT OR A BAD CREDIT IS A SUBJECTIVE DIMENSION BUT UNLIKE MEXICO VENEZUELA IS NOT ON THE HORIZON FOR A CREDIT UPGRADE IN FACT S&P HAS A NEGATIVE OUTLOOK ON VENEZUELAN DEBT THE GOVERNMENT IS WRESTLING WITH A BUDGET DEFICIT SOME US MONEY MANAGERS SUSPECT THAT BILLS OWED BY THE GOVERNMENT MAY NOT GET PAID THAT'S POLITICAL DYNAMITE WHAT APPEARS TO BE HAPPENING IS THAT THE GOVERNMENT HAS A CASH SQUEEZE ON TOP OF A DEFICIT THAT CAN'T BE EASILY TRIMMED SAYS PEDRO BURELLI HEAD OF JP MORGAN'S CARACAS OFFICE TAXABLE REVENUE AWAY FROM OIL IS SHRINKING ANYWAY BUSINESSES ARE GETTING STRANGLED BY HIGH DOUBLEDIGIT INTEREST RATES THE INDUSTRIAL SECTOR HAS COME TO A COMPLETE HALT BECAUSE COMPANIES ARE TRYING TO SERVICE THEIR DEBT SAYS MR BURELLI BUT THERE IS A CASH COW THAT THE GOVERNMENT CAN MILK PEDEVESA LAST YEAR PEDEVESA WAS TAXED AT AN EFFECTIVE 94 RATE FOR GOVERNMENT BUDGET PURPOSES MR BURELLI DOUBTS VENEZUELA WILL TRY TO DIP EVEN FURTHER INTO PEDEVESA'S COFFERS THE GOVERNMENT HAS REALIZED THEY CAN'T GO IN AND START TAPPING PEDEVESA TO COVER ITS FISCAL PROBLEMS HE SAYS THE GOVERNMENT IS SETTING ITSELF UP FOR SMALLER REVENUES FROM THE OIL COMPANY BUT ANY BONDHOLDER HAS TO WONDER WOULDN'T PEDEVESA BE A TEMPTING TARGET IF THE POPULACE GROWS RESTLESS OVER THE EMPTY FEDERAL COFFERS AND BY THE WAY VENEZUELA'S GOVERNMENT IS IN A PERIOD OF TRANSITION WITH PRESIDENTIAL AND OTHER ELECTIONS SCHEDULED FOR DECEMBER PEDEVESA WILL HONOR THE INTEREST PREDICTS MR ARNOLD OF BEA IT WOULD BE A MAJOR BLACK EYE IN THE FUTURE FOR VENEZUELA AND PEDEVESA IF THERE WAS DEFAULT ON IT YET HE AGREES IN THE END YOU ARE RELYING ON VENEZUELA'S WILLINGNESS TO PAY IT IS HARD FOR ME TO SEE WHY THEY WOULD DEFAULT MAYBE 25 YEARS AGO BUT NOW THE ODDS ARE AGAINST IT VENEZUELA HAS A GOOD SOURCE OF FOREIGNEXCHANGE EARNINGS OIL IS OIL PEOPLE ARE GOING TO NEED IT AND THAT'S WHAT THEY PRODUCE 9307190145 930719 CORPORATE FOCUS LIZ CLAIBORNE SEEMS TO BE LOSING ITS INVINCIBLE ARMOR CRITICS SAY UNEXCITING STYLES ARE HURTING APPAREL MAKER'S BOTTOM LINE BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MIDDLE AMERICA'S FAVORITE APPAREL BRAND IS SUDDENLY LOOKING A LOT LIKE DAMAGED GOODS THROUGHOUT THE 80S LIZ CLAIBORNE INC WAS THE UNDISPUTED DARLING OF SEVENTH AVENUE EVEN AS ITS RIVALS LIKE BERNARD CHAUS INC AND LESLIE FAY COS STRUGGLED IN A HIGHLY COMPETITIVE RETAILING CLIMATE CLAIBORNE APPEARED INVINCIBLE IN ITS ABILITY TO TURN OUT AFFORDABLE FASHIONABLE SPORTSWEAR ITS CLOTHES SOLD AT HEALTHY RETAIL PROFIT MARGINS AND WON THE LOYALTY OF DEPARTMENT STORES WHICH DEVOTED INCREASINGLY MORE SELLING SPACE TO THE BRAND BUT LAST FRIDAY A DAY AFTER THE SURPRISE ANNOUNCEMENT THAT VICE CHAIRMAN JAY MARGOLIS RESIGNED FROM THE COMPANY CLAIBORNE STUNNED WALL STREET BY DISCLOSING THAT SECONDQUARTER NET INCOME FELL 21 TO 311 MILLION OR 38 CENTS A SHARE FROM 395 MILLION OR 47 CENTS A SHARE LAST YEAR AND THAT MORE TROUBLE IS AHEAD THE APPAREL GIANT ALSO ESTIMATED THAT IT WILL REPORT A 30 DROP IN 1993 PERSHARE EARNINGS DRIVING CLAIBORNE SHARES DOWN 6875 OR 23 TO CLOSE AT 2275 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IN HEAVY VOLUME CLAIBORNE SAID ITS UNEXPECTED EARNINGS DECLINE IS THE CONSEQUENCE OF HIGHERTHANANTICIPATED EXCESS INVENTORIES AFTER DEPARTMENT STORES REELING FROM DISMAL APPAREL SALES RECENTLY SLASHED WHOLESALE ORDERS FOR FALL MERCHANDISE THAT CLAIBORNE HAD ALREADY PUT INTO PRODUCTION BUT CLAIBORNE ALSO APPEARS TO HAVE MISJUDGED CHANGING CONSUMER TASTES AND THE OVERALL ECONOMIC CLIMATE MR MARGOLIS'S DEPARTURE SENT A SHARP MESSAGE THAT MANAGEMENT HAS BEEN INTERNALLY DIVIDED OVER HOW TO FIX CLAIBORNE'S PROBLEMS CRITICS SAID THAT CLAIBORNE'S RECENT COLLECTIONS HAVE BECOME UNEXCITING RATHER THAN TEMPT ITS INCREASINGLY FRUGAL FANS WITH EYECATCHING STYLES CLAIBORNE OPTED FOR THE SAFE AND BORING STYLES IN ITS CORE SPORTSWEAR BUSINESS WHICH REPRESENTED 12 BILLION OR 55 OF THE CORPORATION'S 1992 SALES EVEN FOUNDERDESIGNER LIZ CLAIBORNE WHO RETIRED FROM THE COMPANY IN 1989 SAID THE IMAGE OF HER NAMESAKE LABEL HAS BECOME STATIC WITH SHOPPERS BUYING LESS CLAIBORNE SPORTSWEAR RETAILERS HAVE BEEN LOSING CONFIDENCE IN THE BRAND WHICH THEY HAVE DEPENDED ON TO PRODUCE STRONG FULLPRICE SALES ONE MAJOR CHAIN WHICH DECLINED TO BE IDENTIFIED SAID THAT SLOW SALES OF CLAIBORNE SPORTSWEAR JUSTIFIED NOT PLACING ORDERS FOR THE LINE THIS FALL AN EXECUTIVE AT THE CHAIN SAID THE STYLING DOESN'T HAVE THE FRESHNESS FASHIONWISE COMPARED TO SOME OF THE OTHER BRANDS OUT THERE THE FACT THAT RETAILERS AREN'T WILLING TO WAIT FOR FALL TO CUT BACK ON CLAIBORNE SHOWS THAT RETAILERS WANT TO DIVERSIFY THAT RISK AND SPREAD THEIR ORDERS AMONG MORE BRANDS SAID DEBORAH BRONSTON AN ANALYST AT PRUDENTIAL SECURITIES SHE ESTIMATED THAT THE ORDERS THAT RETAILERS CANCELED WITH CLAIBORNE CONSTITUTE 200 MILLION OF RETAIL SALES MR MARGOLIS'S DEPARTURE MEANWHILE HAS ADDED TO THE SPECULATION THAT CLAIBORNE HAS LOST ITS EDGE A NINEYEAR VETERAN OF THE COMPANY HE RAN THE WOMEN'S SPORTSWEAR BUSINESS AND WAS THE COMPANY'S TOP MERCHANDISING EXECUTIVE THE 44YEAROLD MR MARGOLIS SAID HE LEFT VOLUNTARILY TO PURSUE ANOTHER APPAREL INDUSTRY JOB THAT HE PLANS TO ANNOUNCE SOON BUT PEOPLE CLOSE TO THE COMPANY SAID HE LEFT IN FRUSTRATION WITH THE COMPANY'S CONSERVATIVE POLICIES JEROME CHAZEN CLAIBORNE CHAIRMAN AND ONE OF ITS FOUNDERS DOESN'T PLAN TO REPLACE MR MARGOLIS IN THE SHORT TERM HE SAID MR MARGOLIS'S RESPONSIBILITIES WILL BE SPREAD AMONG CURRENT EXECUTIVES MR CHAZEN SAID THE COMPANY'S DISCOVERY THAT IT WOULD BE CAUGHT WITH TOO MUCH UNSOLD MERCHANDISE CAME AS A SURPRISE TO HIM WHAT HAS HAPPENED TO US HAPPENED SO QUICKLY HE EXPLAINED IN AN INTERVIEW FRIDAY STORES CUT THEIR BUDGETS RELENTLESSLY IN JUNE AND BY THE TIME RETAILERS BOOKED THEIR ORDERS IN JULY CLAIBORNE MANAGEMENT WAS SHOCKED TO LEARN THAT ITS CAREFUL AND RESTRAINED BUDGETING FOR FALL MERCHANDISE WAS IN FACT FAR TOO BULLISH WE'RE GOING TO HAVE TO BE BETTER ABOUT BUDGETING SHORTEN OUR CYCLE TIME AND RESPOND TO WHAT'S HAPPENED OUT THERE MR CHAZEN SAID MR CHAZEN STRONGLY DISPUTED THE PERCEPTION EXPRESSED BY SOME RETAILERS AND ANALYSTS THAT LIZ CLAIBORNE SPORTSWEAR ISN'T CLICKING WITH CONSUMERS TODAY WHEN BUSINESS IS BAD THEY ALWAYS BLAME THE MERCHANDISE HE COMPLAINED TO SINGLE US OUT AS A COMPANY WHEN RIGHT NOW WE ARE STILL OUTSELLING THE COMPETITION JUST ISN'T ACCURATE NOW CLAIBORNE'S SALES ARE JUST CLOSER TO THE PACK MR CHAZEN SPENT MUCH OF FRIDAY TALKING TO STORE EXECUTIVES WHO HE SAID PLEDGED THEIR SUPPORT FOR CLAIBORNE HE DEFENDED THE COMPANY'S APPROACH AND TRACK RECORD WITH ALL OF THIS CONSERVATIVENESS IN 17 YEARS WE'VE DONE PRETTY WELL HE ASSERTED NOBODY IN OUR INDUSTRY HAS COME CLOSE TO THE GROWTH RATE WE HAVE BUT INDUSTRY OBSERVERS SAID CLAIBORNE WILL HAVE TO BECOME MORE ADEPT IN PLANNING ITS BUSINESS TO PROSPER IN A SLUGGISH ECONOMY WHEN CONSUMER DEMAND IS SLOW WOMEN ARE LOOKING FOR CLOTHES THAT ARE NEW AND UNUSUAL THEY AREN'T JUST REPLACING WHAT THEY ALREADY HAVE SAYS PETER SIRIS OF UBS SECURITIES AND SOME WONDER WHETHER MR CHAZEN IS READY TO CONFRONT THE COMPANY'S PROBLEMS BUT ANALYST MS BRONSTON SAID JERRY HAS THE RAPPORT WITH RETAILERS BUT I'M QUESTIONING WHETHER HE IS RECOGNIZING THAT LIZ CLAIBORNE ISN'T ON A PEDESTAL ANYMORE MR CHAZEN SAID THAT BEING SO IMPORTANT A BRAND TO DEPARTMENT STORES IS A MIXED BLESSING FOR HIS COMPANY SOME SMALLER BRANDS LOOK AS THOUGH THEY OUTSELL CLAIBORNE BECAUSE HE NOTED IN MANY CASES THOSE BRANDS ARE DISTRIBUTED ONLY IN A STORE'S MOST AFFLUENT A LOCATIONS WHERE SALES ARE TYPICALLY STRONG BUT CLAIBORNE IS USUALLY AVAILABLE AT EVERY STORE ACROSS A DEPARTMENTSTORE CHAIN AT WEAKER C AND D STORES WE ARE SOMETIMES THE MOST EXPENSIVE BRAND IN THE STORE MR CHAZEN SAID WHEN SALES ARE DOWN WE GET MORE OF OUR SHARE OF THE BLAME KURT SALMON ASSOCIATES APPAREL INDUSTRY CONSULTANTS NOTED THAT ALL OF ITS CLIENTS ARE RACING TO ENHANCE THEIR APPEAL TO RETAILERS WITH SHORTER PRODUCTION LEAD TIMES IT IS A LOT EASIER FOR THE 50 MILLION SPORTSWEAR COMPANY TO SHRINK ITS RESPONSE CYCLE COMPARED TO A BIG COMPANY WITH MANY DIVISIONS AND PRODUCTS SAID PETER G BROWN OF KURT SALMON CLAIBORNE HAS ATTEMPTED TO ADAPT MORE QUICKLY TO SHIFTING FASHION TRENDS BY ALLOWING STORES TO PLACE ORDERS CLOSER TO THE TIME OF NEED CLAIBORNE'S GOODS ARE TYPICALLY PUT INTO PRODUCTION IN FACTORIES IN 34 COUNTRIES SEVERAL MONTHS BEFORE THEY ARE SHIPPED TO STORES FOR THE LAST YEAR THE COMPANY HAS BEEN OFFERING QUICKER RESPONSE ORDERING ON CERTAIN BASIC STYLES LIKE JEANS AND TWILL PANTS BUT THE CHALLENGE FOR THE COMPANY NOW IS TO INSTITUTE FASTER TURNS ON MORE OF ITS FASHIONSENSITIVE GOODS DESPITE THE SLIPPAGE IN SALES OF ITS WOMEN'S SPORTSWEAR CLAIBORNE HAS OTHER HEALTHY GROWTH BUSINESSES INCLUDING ITS NEW LOWERPRICED RUSS TOGS DIVISION AND CLAIBORNE EXPECTS THAT ITS 1993 PROFIT WILL STILL BE ABOUT 7 OF SALES IN THE SECOND QUARTER OVERALL SALES ROSE 73 TO 5069 MILLION FROM 4726 MILLION A YEAR EARLIER BUT INDUSTRY WATCHERS SAY SEVENTH AVENUE'S FASHION CHAMP IS NOW AGAINST THE ROPES LIZ CLAIBORNE HAS TRADITIONALLY BEEN AHEAD OF THE CURVE AND NOW THEY ARE BEHIND THE CURVE SAYS MR SIRIS OF UBS SECURITIES THEY MADE A MERCHANDISING MISTAKE AND NOW THEY HAVE TO REACT AGGRESSIVELY IT'S TIME TO SHOW THAT THEY AREN'T A VICTIM OF THE ENVIRONMENT 9307190144 930719 WHO'S NEWS TWO NEW DIRECTORS OF FIELDCREST CANNON RESIGN FROM BOARD EDEN NC FIELDCREST CANNON INC SAID G EDWARD BROOKING JR AND MARY BUCKLE WILLIAMS TWO DIRECTORS WHO WERE ELECTED LAST MONTH HAVE RESIGNED FIELDCREST CANNON EXECUTIVES DECLINED TO COMMENT ON THE CIRCUMSTANCES SURROUNDING THEIR DEPARTURE LAST MONTH AMOSKEAG CO THE COMPANY'S CONTROLLING SHAREHOLDER INCREASED THE SIZE OF FIELDCREST'S BOARD TO 17 MEMBERS FROM 12 AT THE TIME THE MOVE APPEARED TO BE AN ATTEMPT TO INCREASE THE INFLUENCE OF THE DUMAINES TRUST OVER THE BOARD OF FIELDCREST THE BOSTONBASED TRUST CONTROLS BOTH AMOSKEAG AN INVESTMENT CONCERN AND FIELDCREST A TEXTILE COMPANY IN MAY FIELDCREST RECEIVED AN UNSOLICITED TAKEOVER BID FROM SPRINGS INDUSTRIES INC WHICH OFFERED TO ACQUIRE BOTH FIELDCREST AND AMOSKEAG FOR ABOUT 345 MILLION IN CASH AND STOCK MR BROOKING AND MS WILLIAMS COULDN'T BE REACHED FOR COMMENT REPRESENTATIVES OF THE DUMAINES TRUST AND AMOSKEAG DIDN'T RETURN PHONE CALLS FRIDAY 9307190143 930719 WAINOCO OFFERS SHARES HOUSTON WAINOCO OIL CORP SAID IT COMPLETED A PUBLIC OFFERING OF FIVE MILLION COMMON SHARES AT 450 APIECE THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID PROCEEDS WILL BE USED TO PAY DEBT THE OFFERING RAISED THE NUMBER OF WAINOCO'S SHARES OUTSTANDING TO 27 MILLION 9307190141 930719 WHO'S NEWS BRANFORD SAVINGS SEES SECONDQUARTER LOSS RYAN RESIGNS AS CEO BRANFORD CONN BRANFORD SAVINGS BANK ANNOUNCED THE RESIGNATION OF ITS PRESIDENT AND CHIEF EXECUTIVE AND SAID AN EXPECTED SECONDQUARTER LOSS HAS LED IT TO STUDY WAYS TO RESTORE CAPITAL RAYMOND RYAN 55 YEARS OLD RESIGNED AS PRESIDENT CHIEF EXECUTIVE AND TREASURER THE BANK'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATION OFFICER ROBERT MARIANO 59 WAS NAMED ACTING REPLACEMENT SUBJECT TO REGULATORY APPROVAL THE BANK SAID IT EXPECTS A SECONDQUARTER LOSS OF ABOUT 24 MILLION WHICH WILL REDUCE ITS PRIMARY CAPITAL RATIO TO 28 IT SAID DIRECTORS WERE CONSULTING WITH MAJOR SHAREHOLDERS ABOUT RESTORING CAPITAL OR MERGING WITH ANOTHER INSTITUTION TOTAL NONPERFORMING ASSETS FOR THE SECOND QUARTER WILL BE ABOUT 238 MILLION DOWN FROM 292 MILLION IN THE FIRST QUARTER AND 319 MILLION AT YEAR END THE BANK SAID 9307190140 930719 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST 9307190139 930719 INTERNATIONAL ALL NIPPON AIRWAYS JAPAN AIR TO SHARE AIRCRAFT MAINTENANCE TOKYO JAPAN AIR LINES AND ALL NIPPON AIRWAYS AGREED TO COOPERATE IN AIRCRAFT MAINTENANCE UNDERSCORING THEIR NEEDS TO CUT COSTS JAPAN'S MAJOR TWO CARRIERS SAID THEY WILL SHARE SPARE PARTS AND WAREHOUSES FOR THE BOEING CO 777S THEY HAVE ORDERED FOR DELIVERY IN 1995 DETAILS OF THE AGREEMENT HAVE STILL TO BE WORKED OUT WE MIGHT BE ARCHRIVALS IN THE COMMERCIAL SPHERE BUT WHEN IT COMES TO THE PRACTICALITIES OF SAVING MONEY SUCH AN AGREEMENT IS CLEARLY IN OUR MUTUAL INTEREST A JAL SPOKESMAN SAID ANALYSTS SAID THE ALLIANCE SIGNALS THAT THE AIRLINES EXPECT THEIR FINANCIAL SQUEEZE TO PERSIST AS THE AIRCRAFT COVERED BY THE DEAL WON'T BE DELIVERED FOR TWO YEARS THEY MUST BE PRETTY DESPERATE TO JOIN IN A PARTNERSHIP SAID CHIN LIM AN AIRLINE ANALYST AT MORGAN STANLEY ASIA LTD IN HONG KONG JAL JAPAN'S BIGGEST INTERNATIONAL CARRIER HAS FIRM ORDERS FOR 10 BOEING 777S AND OPTIONS FOR ANOTHER 10 ANA JAPAN'S BIGGEST DOMESTIC AIRLINE HAS ORDERED 15 BOEING 777S AND TAKEN OPTIONS ON 10 MORE EACH JETLINER COSTS ABOUT 120 MILLION AND PEOPLE IN THE INDUSTRY SAID THE COOPERATION ON MAINTENANCE COULD SAVE THE AIRLINES 5 MILLION TO 10 MILLION ANNUALLY FOR EACH PLANE BUT JAL AND ANA OFFICIALS SAID IT IS TOO EARLY TO ESTIMATE THE SAVINGS JAPAN'S THIRDLARGEST AIRLINE JAPAN AIR SYSTEM MAY JOIN THE MAINTENANCE PROJECT LATER THE JAL SPOKESMAN SAID JAPAN AIR SYSTEM HAS PLACED FIRM ORDERS FOR SEVEN BOEING 777S THE JAPANESE AIRLINE INDUSTRY SUSTAINED ITS WORST PERFORMANCE EVER IN THE YEAR ENDED MARCH 31 JAL HAD A NET LOSS OF 4378 BILLION YEN 404 MILLION ANA'S NET PROFIT PLUNGED 68 TO 242 BILLION YEN AND ANALYSTS SAY THE AIRLINE MANAGED TO AVOID A LOSS ONLY THROUGH GAINS ON AIRCRAFT SALES ANALYSTS DOUBT THAT DEMAND FOR AIR TRAVEL WILL PICK UP IN JAPAN THIS YEAR JAPANESE CORPORATIONS AND INDIVIDUALS ARE REDUCING TRAVEL OR SHUNNING FIRST AND BUSINESSCLASS SECTIONS ANY DOMESTIC ECONOMIC RECOVERY THIS YEAR IS CONSIDERED UNLIKELY TO BOOST AIRLINE BUSINESS BEFORE MID1994 9307190138 930719 BENSON EYECARE ANTICIPATES PROFIT FOR SECOND PERIOD BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BENSON EYECARE CORP EXPECTS TO POST A NET PROFIT FOR THE SECOND QUARTER ITS CHAIRMAN AND CHIEF EXECUTIVE SAID AND PLANS TO CONTINUE TO EXPAND JUST AS IT HAS IN THE PASTTHROUGH ACQUISITIONS MARTIN E FRANKLIN CHAIRMAN AND CHIEF EXECUTIVE OF THE EYECARE CONCERN SAID HE EXPECTS THE COMPANY TO REPORT NET INCOME OF 700000 OR SIX CENTS A SHARE ON REVENUE OF 163 MILLION THE COMPANY IS EXPECTED TO REPORT EARNINGS THIS WEEK FOR THE FIRST QUARTER THE COMPANY POSTED A NET LOSS OF 617000 OR SIX CENTS A SHARE ON REVENUE OF 101 MILLION IN THE YEAREALIER PERIOD THE BUSINESS THAT WOULD BECOME BENSON EYECARE REPORTED NET INCOME OF 60000 ON SALES OF 26 MILLION A COMPARISON IS DIFFICULT HOWEVER DUE TO CHANGES IN THE COMPANY'S STRUCTURE SINCE THEN BENSON EYECARE WAS FORMED IN LATE 1992 WHEN MR FRANKLIN ACQUIRED BENSON OPTICAL CORP AND COMBINED IT WITH SEVERAL EYECARE CONCERNS HE ALREADY HELD SINCE THEN ANNUAL SALES HAVE GROWN TO AN ESTIMATED 110 MILLION TO 120 MILLION WE'RE CONTINUING TO RIDE A WAVE OF CONSOLIDATION IN THE MARKET MR FRANKLIN SAID AND WE ARE IN ACTIVE DISCUSSIONS WITH SEVERAL COMPANIES MR FRANKLIN ADDED THAT THE SECONDQUARTER ACQUISITIONS OF BONNEAU COS AND SUPERIOR EYE CARE INC HAVE BOLSTERED EARNINGS HE SAID THAT PROFORMA RESULT STAKING INTO ACCOUNT THE EARNINGS OF THE TWO ACQUISITIONS FOR THE ENTIRE QUARTER WOULD INDICATE AN ESTIMATED SECONDQUARTER NET OF 3 MILLION OR 19 CENTS A SHARE ON REVENUE OF 291 MILLION MR FRANKLIN'S INTEREST IN BUILDING THE EYECARE BUSINESS STEMS FROM THE FACT THAT AMERICA IS AGING SO MORE PEOPLE WILL BEGIN SEEING AN OPHTHALMOLOGIST MORE OFTEN HE SAID CURRENTLY BENSON OPERATES 215 OPHTHALMOLOGISTBASED DISPENSARIES IN 28 STATES HOWEVER HE NOTED ONE OF THE FASTESTGROWING SEGMENTS IN EYE CARE IS THE READYTOWEAR READINGGLASSES MARKET WHICH APPEALS TO THE AGING BABY BOOMERS HE ESTIMATED THAT 51 MILLION IN REVENUE THIS YEAR WILL COME FROM PRESCRIPTIONORIENTED EYE CARE AND 54 MILLION IN REVENUE WILL COME FROM NONPRESCRIPTION BUSINESS MAINLY IN READYTOWEAR READING GLASSES AND INEXPENSIVE SUNGLASSES IN THE SHORT TERM THE COMPANY PLANS TO PARE COSTS AND IMPROVE THE EFFICIENCY OF ITS OPERATIONS NOT A LOT OF NEW EYECARE PRODUCTS ARE BEING INTRODUCED AT THIS TIME MR FRANKLIN SAID THEREFORE COST WILL BECOME MORE AND MORE IMPORTANT WE NEED TO EMPHASIZE COST CONTAINMENT 9307190137 930719 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 274101 METRIC TONS IN THE WEEK ENDED SATURDAY A 16 INCREASE FROM 269906 TONS IN THE PREVIOUS WEEK AND A 16 RISE FROM 237231 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 7517319 TONS A 32 INCREASE FROM 7283849 TONS A YEAR EARLIER 9307190136 930719 MONY'S DUFF & PHELPS RATING CHICAGO DUFF & PHELPS CREDIT RATING CO DOWNGRADED THE CLAIMSPAYING ABILITY OF MUTUAL LIFE INSURANCE CO OF NEW YORK CITING THE COMPANY'S REAL ESTATE EXPOSURE DUFF & PHELPS SAID THE REDUCTION TO SINGLEAPLUS FROM DOUBLEAMINUS REFLECTED THE CONTINUING REAL ESTATE RECESSION AND MONY'S ABOVE AVERAGE INDUSTRY EXPOSURE TO COMMERCIAL REAL ESTATE WE THINK DUFF & PHELPS HAS BEEN A LITTLE HIGHER THAN THE OTHER AGENCIES AND THIS IS JUST AN ADJUSTMENT ON THEIR PART SAID A MONY SPOKESWOMAN 9307190135 930719 EVEREX TO REDUCE STAFF BY 125 FREMONT CALIF EVEREX SYSTEMS INC SAID IT WILL REDUCE ITS MANUFACTURING WORK FORCE BY ABOUT 125 PEOPLE IN MARCH THE STRUGGLING MAKER OF PERSONAL COMPUTERS LAID OFF ABOUT 25 OF ITS WORK FORCE LEAVING IT WITH 500 EMPLOYEES EVEREX WHICH FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN JANUARY SAID THE ADDITIONAL CUTS WILL HELP IT LOWER OPERATING COSTS WHILE IT SEEKS TO REVIVE BUSINESS THE ONCE FASTGROWING COMPANY HAS BEEN BATTERED BY THE CONTINUING PRICE WAR IN THE PC INDUSTRY 9307190134 930719 INTERNATIONAL AUSTRALIAN VEHICLE REGISTRATIONS SYDNEY AUSTRALIA AUSTRALIAN NEWMOTOR VEHICLE REGISTRATIONS ROSE 15 TO 52469 IN JUNE FROM 45791 IN MAY AND EDGED UP 17 FROM 51575 IN JUNE 1992 ACCORDING TO CONSULTING CONCERN PAXUS CORP THE DATA AREN'T SEASONALLY ADJUSTED FOR THE FIRST HALF OF 1993 NEW REGISTRATIONS ROSE 22 TO 264236 FROM 258622 IN THE FIRST HALF OF 1992 9307190133 930719 HAWKINS ENERGY ACQUISITION TULSA OKLA HAWKINS ENERGY CORP SAID IT COMPLETED THE ACQUISITION OF A CLOSELY HELD COMPRESSOR RENTAL CONCERN HAWKINS AN ENERGY COMPANY SAID IT ACQUIRED OWENS COMPRESSION SERVICES INC FOR 31 MILLION SHARES OF HAWKINS COMMON CURRENTLY VALUED AT 116 MILLION OWENS OWNS A RENTAL FLEET OF 96 COMPRESSORS AND SERVES EAST TEXAS AND NORTHERN LOUISIANA HAWKINS SAID THAT TAKING INTO ACCOUNT THE ACQUISITION IT NOW HAS 127 MILLION COMMON SHARES OUTSTANDING 9307190132 930719 EDI RUSSIANS SET ACCORD MOSCOW EDI INTERNATIONAL INC AND THE INSTITUTE OF WORLD ECONOMY AND INTERNATIONAL RELATIONS A RUSSIAN THINK TANK ENTERED INTO AN AGREEMENT FOR EDI TO SERVE AS EXCLUSIVE DISTRIBUTOR IN NORTH AMERICA OF RESEARCH ON RUSSIAN AGRIBUSINESS AND FOOD PROCESSING EDI A CINCINNATIBASED CONSULTING CONCERN SAID THE AGREEMENT IS A JOINT VENTURE PARTNERSHIP TO CARRY OUT MARKET RESEARCH IN RUSSIA AND PROVIDE THAT INFORMATION TO US COMPANIES INTERESTED IN DOING BUSINESS THERE 9307190131 930719 MALAYSIA TRADE SURPLUS DECLINES KUALA LUMPUR MALAYSIA MALAYSIA'S TRADE SURPLUS IN APRIL FELL TO 1135 MILLION RINGGIT 442 MILLION COMPARED WITH 6763 MILLION RINGGIT IN MARCH AND A DEFICIT OF 5889 MILLION RINGGIT IN APRIL 1992 A STATISTICS DEPARTMENT STATEMENT SAID THE APRIL SURPLUS WAS THE 12TH CONSECUTIVE MONTHLY SURPLUS SINCE MAY 1992 IT SAID THE DECREASE IN THE APRIL SURPLUS MIGHT BE PARTLY ATTRIBUTABLE TO THE IMPORT OF NINE COMMERCIAL AIRCRAFT VALUED AT 105 BILLION RINGGIT MALAYSIA'S CUMULATIVE TRADE SURPLUS IN THE FIRST FOUR MONTHS OF 1993 AMOUNTED TO 181 BILLION RINGGIT AGAINST A DEFICIT OF 259 BILLION RINGGIT IN THE SAME PERIOD OF 1992 9307190130 930719 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE PANETTA PLAYS TAPS FOR THE BTU TAX BUT SAYS DEFICITCUTTING TARGET IS FIRM BY DAVID WESSEL AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE LEON PANETTA PUT THE LAST NAIL IN THE COFFIN OF THE BROADBASED ENERGY TAX WE'RE LOOKING MORE AT A GAS TAX THAN A BTU TAX OR A UTILITY TAX OF ANY KIND MR PANETTA SAID YESTERDAY ON CBSTV'S FACE THE NATION HE PREDICTED THE FINAL SENATEHOUSE COMPROMISE WOULD INCLUDE AN INCREASE IN THE FEDERAL GASOLINE TAX HIGHER THAN THE 43 CENTAGALLON INCREASE THAT PASSED THE SENATE BUT HE WOULDN'T BE MORE SPECIFIC THE BUDGET DIRECTOR ALSO MADE CLEAR THE ADMINISTRATION IS KEEPING TO ITS GOAL OF REDUCING THE DEFICIT BY 500 BILLION OVER FIVE YEARS DESPITE SPECULATION ON CAPITOL HILL THAT THE FINAL BILL WON'T BE AS LARGE WE NEED TO STICK AS CLOSELY AS WE CAN TO THAT 500 BILLION MR PANETTA SAID PRESIDENT CLINTON INITIALLY PROPOSED A BROAD ENERGY TAX KNOWN AS THE BTU TAX BECAUSE IT WOULD HAVE BEEN BASED ON THE HEAT CONTENT OF VARIOUS FUELS AS MEASURED IN BRITISH THERMAL UNITS THAT TAX PASSED THE HOUSE WITH SOME MODIFICATIONS BUT DIED IN THE SENATE THOUGH THERE HAS BEEN TALK OF COUPLING THE GASOLINE TAX WITH A NEW TAX ON RESIDENTIAL AND COMMERCIAL UTILITY BILLS CONGRESSIONAL LEADERS HAVE INDICATED THAT ISN'T LIKELY TO SHOW UP IN THE FINAL COMPROMISE EACH ADDITIONAL PENNY ON THE FEDERAL GASOLINE TAX NOW AT 141 CENTS A GALLON BRINGS IN ABOUT 1 BILLION ANNUALLY MR PANETTA SAID THE ADDED REVENUE IS NEEDED SO THAT SPENDING ON THE MEDICARE HEALTH INSURANCE PROGRAM FOR THE ELDERLY WON'T HAVE TO BE REDUCED AS MUCH AS THE SENATE WANTS AND TO RESTORE SOME OF THE CLINTONBACKED INVESTMENT PROGRAMS THAT THE HOUSE APPROVED BUT THE SENATE DIDN'T THE INVESTMENTS INCLUDE CREATING NEW TAX INCENTIVES TO ENCOURAGE BUSINESSES TO INVEST AND HIRE IN POCKETS OF POVERTY EXPANDING THE EARNEDINCOME TAX CREDIT FOR THE WORKING POOR AND PROVIDING CERTAIN TAX INCENTIVES FOR SMALL BUSINESSES TO BUY EQUIPMENT AS KEY HOUSE AND SENATE NEGOTIATORS RESUME TALKS TOMORROW THEIR CHALLENGE IS RECONCILING SHARPLY DIVERGENT VIEWS WITHIN THE DEMOCRATIC PARTY ON THE PROPER BALANCE OF TAXES SPENDING CUTS NEW SPENDING AND DEFICIT REDUCTION WHILE MR PANETTA AND DEMOCRATIC LEADERS EMPHASIZE THE IMPORTANCE OF HITTING THEIR DEFICITREDUCTION TARGET REP KWEISI MFUME WHO HEADS THE CONGRESSIONAL BLACK CAUCUS BRUSHED OFF THE FIXATION ON THE 500 BILLION FIGURE AS A NONSTARTER WE'RE NOT WEDDED SO MUCH TO NUMBERS AS MUCH AS WE ARE WEDDED TO THE NOTION OF BUDGET REDUCTION AND DOING SOMETHING MEANINGFUL THIS YEAR THE MARYLAND DEMOCRAT SAID YESTERDAY ON FACE THE NATION SOME LAWMAKERS IN FACT WOULD TUG THE NEGOTIATIONS IN CONTRADICTORY DIRECTIONS AT THE SAME TIME TO ACCOMMODATE THEIR INDIVIDUAL PREFERENCES LESS BUT ON THE OTHER HAND MORE FOR EXAMPLE IN AN APPEARANCE ON NBCTV'S MEET THE PRESS SEN ROBERT KERREY COMPLAINED THAT THE DEFICITREDUCTION PACKAGE DOESN'T CUT SPENDING NEAR ENOUGH HE SUGGESTED THAT CONGRESS CUT ITS OWN STAFF AND SALARIES TO DEMONSTRATE THAT SHORTTERM SACRIFICE IS REQUIRED MOMENTS LATER HOWEVER THE NEBRASKA DEMOCRAT URGED THAT THE PACKAGE BE MADE MORE GENEROUS TO SMALL BUSINESS THE WHITE HOUSE FOR ITS PART IS STEPPING UP ITS EFFORTS TO RALLY A SKEPTICAL PUBLIC LATE LAST WEEK THE WHITE HOUSE SENT ADMINISTRATION OFFICIALS A MARKETING MEMO ENTITLED HALLELUJAH CHANGE IS COMING THE MEMO IMMEDIATELY RIDICULED BY REPUBLICANS REMINDED THE OFFICIALS THAT YOUR BODY LANGUAGE ATTITUDE AND CONFIDENCE WILL BE INFECTIOUS IN DISCUSSING THE PLAN'S VIRTUES THIS WEEK THE WHITE HOUSE IS DISTRIBUTING AN 86PAGE SUPPORTING DOCUMENT ASSERTING THAT THE PLAN WOULD CREATE SEVEN TO NINE MILLION JOBS OVER THE NEXT FOUR YEARS AND PRESIDENT CLINTON IS CONSIDERING MEETING WITH DEMOCRATIC NEGOTIATORS AS A GROUP AND WITH KEY NEGOTIATORS INDIVIDUALLY TO UNDERSCORE HIS COMMITMENT TO SECURING A COMPROMISE OVER THE WEEKEND MEMBERS OF THE SENIOR NEGOTIATORS' STAFFS WORKED TO DRAFT LANGUAGE OF A COMPROMISE BILL ENCOMPASSING AREAS ON WHICH THE HOUSE AND SENATE GENERALLY AGREE THAT'S PERHAPS 85 OF THE PACKAGE BUT IT LEAVES THE MOST CRITICAL TAX AND SPENDING ISSUES TO BE SETTLED IN THE THREE WEEKS REMAINING BEFORE CONGRESS LEAVES FOR ITS AUGUST RECESS 9307190129 930719 TECHNOLOGY CALIFORNIA REGULATORS SET TO CLEAR WAY FOR COMPETITION IN TOLLCALL MARKET BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA REGULATORS PLAN TO OPEN THE WAY FOR LONGDISTANCE COMPANIES TO COMPETE AGAINST PACIFIC BELL GTE CORP AND OTHER LOCAL TELEPHONE COMPANIES IN THE 2 BILLIONPLUS TOLLCALL MARKET DETAILS OF HOW THEY WILL GO ABOUT DOING IT HAVEN'T BEEN SETTLED BUT A FINAL DECISION BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION IS EXPECTED IN SEPTEMBER AFTER THE AGENCY EVALUATES TWO SEPARATE PROPOSALS ISSUED LATE FRIDAY OVER THE NEXT FEW WEEKS THE COMMISSION EXPECTS A FLOOD OF COMMENTS FROM CONSUMER GROUPS BUSINESS USERS AND TELEPHONE COMPANIES TOLL CALLS ARE LONG DISTANCE CALLS WITHIN CERTAIN DEFINED REGIONS THAT FINAL DECISION IS LIKELY TO HAVE A MAJOR IMPACT ON PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT WHICH ACCOUNTS FOR THE BULK OF CALIFORNIA'S TOLLCALL MARKET MIKE MILLER PACIFIC BELL'S VICE PRESIDENT FOR COMPETITIVE READINESS SAID THE COMPANY WAS PLEASED WITH THE DIRECTION OF BOTH PROPOSALS BUT WOULD NEED SEVERAL DAYS TO ASSESS THE IMPACT OF THE PROPOSALS ONE PLAN HE ACKNOWLEDGED FELL FAR SHORT OF THE COMPANY'S REQUEST TO RAISE RATES FOR BASIC TELEPHONE SERVICE WHILE THE OTHER OPENS UP NEW AREAS TO COMPETITION WHICH WE HADN'T INCLUDED IN OUR PROPOSAL PERHAPS THE MOST IMPORTANT DECISION ISN'T EXPECTED TO BE MADE UNTIL NEXT YEAR THAT IS WHEN THE COMMISSION IS SCHEDULED TO DECIDE WHETHER PHONE CUSTOMERS CAN SIGN UP WITH A PARTICULAR LONGDISTANCE COMPANY TO CARRY THEIR TOLL CALLS OR WHETHER THEY WILL HAVE TO DIAL CUMBERSOME ACCESS CODES TO USE SPECIFIC CARRIERS REQUIRING ACCESS CODES TO REACH COMPETITORS WOULD WORK TO PACIFIC BELL'S ADVANTAGE A SPOKESMAN FOR AMERICAN TELEPHONE & TELEGRAPH CO SAID HIS COMPANY ALSO WAS DELIGHTED WITH THE COMMISSION'S DIRECTION BUT NEEDED TIME TO STUDY THE PLANS ALTHOUGH MANY OTHER STATES LET COMPETITORS PROVIDE TOLL SERVICE FEW HAVE TAKEN AS COMPREHENSIVE AN APPROACH AS CALIFORNIA AND NONE REPRESENT SUCH A LARGE MARKET LAST YEAR PACIFIC BELL'S REVENUE FROM TOLL CHARGES TOTALED 21 BILLION PACIFIC BELL A VIRTUAL MONOPOLY IN THE LOCAL PHONE BUSINESS BEGAN PREPARING FOR NEW COMPETITION IN THE LAST COUPLE OF YEARS WE'VE BEEN REFOCUSING RESTRUCTURING AND REENGINEERING THE BUSINESS PACIFIC BELL PRESIDENT PHIL QUIGLEY SAID IN A RECENT INTERVIEW THE COMPANY HE SAID IS FOCUSING ON UNIQUE CUSTOMER NEEDS WITHIN UNIQUE CUSTOMER SEGMENTS AND HAS TAKEN STEPS TO MAKE EMPLOYEES MORE RESPONSIVE TO CUSTOMERS UNDER THE COMMISSION'S ARCANE PROCEDURES TWO ADMINISTRATIVE LAW JUDGES URGED THE COMMISSION TO LET LONGDISTANCE COMPANIES OFFER TOLL SERVICE BEGINNING JAN 1 1994 AT THE SAME TIME COMMISSIONER NORMAN D SHUMWAY WHO TOOK ON THE SPECIAL ASSIGNMENT OF STUDYING THE ISSUE AND COMING UP WITH A BLUEPRINT URGED A BROADER APPROACH THAT WOULD LET RIVALS ENTER PREVIOUSLY SACROSANCT SEGMENTS OF THE LOCAL PHONE BUSINESS INCLUDING PROVIDING ANALOG PRIVATE LINES DIRECTORY ASSISTANCE AND LOCAL CALLS WITHIN CERTAIN ZONES IN HIS PROPOSAL TO THE COMMISSION MR SHUMWAY SAID THAT FUTURE LOCAL PHONE SERVICE WILL BE PROVIDED BY MANY RIVAL COMPANIES AND ALL SHOULD BE ABLE TO PROVIDE SERVICE WHERE THEY SEE CUSTOMER DEMAND LOCAL PHONE COMPANIES AREN'T EXPECTED TO SEE HIGHER REVENUES FROM THE DECISION BUT CONSUMERS ARE CERTAIN TO SEE SIGNIFICANT CHANGES IN THE WAY THEIR MONTHLY PHONE BILLS ARE CALCULATED BOTH PROPOSALS WOULD CUT PHONE BILLS FOR RESIDENTIAL AND BUSINESS CUSTOMERS WHO MAKE MANY TOLL CALLS BUT INCREASE MONTHLY CHARGES FOR THOSE WHO MAKE ONLY LOCAL CALLS UNDER THE SHUMWAY PROPOSAL FOR INSTANCE THE AVERAGE PACIFIC BELL BUSINESS CUSTOMER WITH A CURRENT BILL OF 7614 WOULD SEE A DROP OF NEARLY 6 WHILE A TYPICAL RESIDENTIAL CUSTOMER WHO OPTED FOR MEASURED RATE SERVICE WOULD SEE A 273 RISE TO 2996 ONE OF THE BIGGEST GAPS BETWEEN THE PLAN ADVANCED BY THE ADMINISTRATIVE LAW JUDGES AND THAT OF MR SHUMWAY INVOLVED BASIC RATES THE JUDGES CALLED FOR A 20 INCREASE FROM CURRENT LEVELS WITH PACIFIC BELL'S RESIDENTIAL FLAT RATE SERVICE RISING TO 10 A MONTH AND MEASURED RATE SERVICE CLIMBING TO 540 MR SHUMWAY TRYING TO PUSH THE CHARGES CLOSER TO THE ACTUAL COSTS OF PROVIDING SERVICE WOULD LET PACIFIC BELL BOOST ITS BASIC RESIDENTIAL SERVICE RATE TO 13 AND GTE TO 1780 BOTH PROPOSALS WOULD SLASH THE COST OF TOLL CALLS FOR PACIFIC TELESIS THE FIRST MINUTE OF A DAYTIME TOLL CALL PLACED TO A DESTINATION 31 TO 40 MILES AWAY WOULD COST 16 CENTS DOWN FROM THE CURRENT LEVEL OF 30 CENTS EACH ADDITIONAL MINUTE WOULD BE BILLED AT 13 CENTS DOWN FROM 21 CENTS SIMILARLY THE INITIAL MINUTE AT THE NIGHT RATE WOULD BE SIX CENTS DOWN FROM 12 CENTS AND EACH ADDITIONAL MINUTE WOULD COST FIVE CENTS RATHER THAN THE CURRENT EIGHT CENTS 9307190128 930719 ZALE'S FISCAL 1STQUARTER SALES DALLAS ZALE CORP SAID ITS SALES FOR THE FISCAL FIRST QUARTER ENDED JUNE 30 INCREASED 25 TO 184 MILLION LOWER THAN THE 43 GAIN IT PROJECTED IN MARCH THE JEWELRY RETAILER SAID THAT IF THE TREND CONTINUES ITS OPERATING EARNINGS FOR FISCAL 1994 COULD RANGE FROM 61 MILLION TO 66 MILLION BELOW THE 86 MILLION ESTIMATED IN MARCH ZALE'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER DEAN GROUSSMAN SAID LOWER TRAFFIC AT MALLS WHERE ITS STORES ARE LOCATED LED TO THE DISAPPOINTING RESULTS ZALE WHICH HAS BEEN OPERATING UNDER THE PROTECTION OF THE FEDERAL BANKRUPTCY COURT SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY PROCEEDINGS ON JUNE 28 9307190127 930719 INTERNATIONAL INVESTMENT GROUP IN MEXICO WINS STATE MEDIA FIRMS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY AN INVESTMENT GROUP LED BY RICARDO SALINAS PLIEGO PRESIDENT OF MEXICO'S LARGEST CONSUMER ELECTRONICS CHAIN WON CONTROL OF A PACKAGE OF STATEOWNED MEDIA COMPANIES INCLUDING TWO NATIONAL TELEVISION NETWORKS WITH A BID OF 640 MILLION THE 37YEAROLD MR SALINAS THE SCION OF A WEALTHY FAMILY WITH VIRTUALLY NO EXPERIENCE IN THE MEDIA BUSINESS HAD BEEN CONSIDERED A DARKHORSE BIDDER BUT HE WALKED OFF WITH MEXICO'S BIGGEST PRIVATIZATION PRIZE OF THE YEAR WITH A HEFTY OFFER 30 GREATER THAN THAT OF HIS NEAREST COMPETITOR NOW MR SALINAS FACES THE FORMIDABLE TASK OF COMPETING AGAINST MEXICO'S GRUPO TELEVISA THE LARGE SPANISHLANGUAGE COMMUNICATIONS COMPANY MR SALINAS IS PRESIDENT OF GRUPO ELEKTRA WHICH HAS 275 RETAIL ELECTRONICS OUTLETS THROUGHOUT MEXICO THE COMPANY WHICH IS OWNED ENTIRELY BY THE SALINAS FAMILY ALSO HAS A MOBILE RADIO DIVISION AT THE OUTSET OF THE PRIVATIZATION PROCESS MR SALINAS HAD SAID HIS BID WAS PROMPTED AS MUCH AS ANYTHING BY HIS OWN FRUSTRATION TRYING TO PLACE ADVERTISING ON TELEVISA THE MEDIA GIANT IN RECENT YEARS HAS IMPOSED HUGE RATE INCREASES THAT WERE PAYABLE A YEAR IN ADVANCE ELEKTRA IS ONE OF THE TOP 30 COMPANIES IN MEXICO MR SALINAS HAD SAID BUT WE DON'T ADVERTISE MUCH ON TELEVISION BECAUSE TELEVISA IS SO DIFFICULT MR SALINAS SAID HE FELT OTHER COMPANIES SUCH AS HIS WERE SEARCHING FOR AN ADVERTISING OPTION HE HAD SAID THAT WERE HE TO WIN CONTROL OF THE STATE NETWORKS HE COULD OBTAIN 20 TO 30 OF MEXICO'S TOTAL TELEVISION ADVERTISING REVENUE WITHIN TWO YEARS THE STATEOWNED NETWORKS CURRENTLY RECEIVE ABOUT 116 OF TOTAL MEXICAN AD REVENUE ACCORDING TO DONALDSON LUFKIN & JENRETTE INC THOUGH HE ACKNOWLEDGED THAT HE HAD NO MEDIA EXPERIENCE MR SALINAS SAID HIS YEARS AT ELEKTRA HAVE GIVEN HIM A GOOD SENSE OF THE HABITS OF THE MEXICAN CONSUMER ELEKTRA HAS A PRESENCE IN ALL KINDS OF BARRIOS AND WE KNOW WHAT THE MEXICAN TASTES ARE HE SAID MR SALINAS ALSO SAID HE WOULD CONSIDER FORMING AN ALLIANCE WITH A FOREIGN TELEVISION COMPANY ESPECIALLY ONE FROM LATIN AMERICA IF HE WON CONTROL OF THE NETWORKS BESIDES THE TWO NETWORKS THE MEDIA PACKAGE BEING PRIVATIZED INCLUDES 168 AFFILIATE STATIONS A MOVIE THEATER CHAIN AND A PRODUCTION STUDIO MR SALINAS HAD TALKED OF DEVELOPING COMMERCIAL REAL ESTATE PROPERTIES ON THE SITE OF THE THEATERS BIDS WERE ALSO PRESENTED BY A GROUP LED BY FRANCISCO AGUIRRE CHIEF OF THE RADIO CHAIN GRUPO RADIO CENTRO A GROUP LED BY TRUCK MANUFACTURER RAYMUNDO GOMEZ FLORES THAT INCLUDED CAPITAL CITIES/ABC INC AND PARAMOUNT COMMUNICATIONS INC AND A GROUP LED BY ADRIAN SADA CHAIRMAN OF GLASS MAKER VITRO 9307190126 930719 LETTERS TO THE EDITOR WASHINGTON'S HOLE IN THE WALL GANG AFTER READING ROBERT L BARTLEY'S BUTCH AND SUNDANCE SHOW DEMOCRATS WHEN TO LEAP CLIFF EDITORIAL PAGE JUNE 30 I WOULD LIKE TO OFFER THE VERSION I USE AS AN EXAMPLE OF MANAGEMENT DECISIONMAKING PURSUED FOR DAYS BY AN UNRELENTING POSSE EXASPERATED AT EVERY TURN BUTCH AND SUNDANCE KEEP ASKING WHO ARE THOSE GUYS IN THE END THEY ARE TRAPPED AT THE EDGE OF A HIGH CLIFF FACED WITH INSURMOUNTABLE ODDS THEY MUST EITHER SURRENDER OR LEAP INTO A RAGING RIVER HUNDREDS OF FEET BELOW FINALLY PREPARED TO JUMP BUTCH TURNS IMPATIENTLY TO SUNDANCE WHAT ARE YOU WAITING FOR HE SAYS A POIGNANT PAUSE BUT I CAN'T SWIM BUTCH SNAPS BACK HELL THE FALL'S GONNA KILL YA WITH THAT THEY LEAP INTO THE RAGING RIVER AND COMPLETE THEIR ESCAPE ONLY TO MEET THEIR END IN A HAIL OF BULLETS SOMEWHERE DOWN THE ROAD ROSS PEROT IS THE POSSE THE REPUBLICANS CAN'T SWIM AND I AM SURE AT LEAST SOME DEMOCRATS LIKE BUTCH RECOGNIZE THAT THE FALL'S GONNA KILL 'EM THEY ARE PREPARED TO LEAP ANYWAY IN THE END AS BUTCH AND SUNDANCE DISCOVERED IF DESPERADOS CONTINUE INDISCRIMINATELY HELPING THEMSELVES TO OTHER PEOPLE'S MONEY EVENTUALLY THEY THE DEMOCRATS WILL MEET THEIR END IN A HAIL OF ELECTORAL BULLETS SOMEWHERE DOWN THE ROAD MR BARTLEY'S COMMENTS ARE AS ACCURATE A CHARACTERIZATION OF THE CLINTON APPROACH AS I HAVE SEEN THAT HOPE SEEMS TO PLAY A LARGE PART IN PRESIDENT CLINTON'S ECONOMIC PLAN MAY BE UNDERSTOOD IN LIGHT OF HIS LACK OF EXPERIENCE IN ACTUALLY WORKING FOR A LIVING CLEARLY HIS ADVISERS HAVE IGNORED THE STRONG HISTORICAL EVIDENCE THAT HIGHER TAXES HAVE NEVER RESULTED IN EXPECTED TAX REVENUES FURTHER THEY HAVE CHOSEN TO REWRITE HISTORY BY LABELING THE 1990 TAX INCREASE AS THE BUSH TAX INCREASE WHILE IT WAS PLAIN TO SEE AT THE TIME ON CNN THAT PRESIDENT BUSH WAS HELD HOSTAGE BY THE DEMOCRATS IN ONE OF THE MOST SEVERE BUDGET CRISES WE HAVE FACED AND GAVE IN TO HIGHER TAXES ONLY AFTER THE DEMOCRATS AGREED TO SPENDING LIMITS PRESIDENT BUSH WAS ALSO IN THE MIDDLE OF A MAJOR INTERNATIONAL CRISIS LET'S NOT FORGET DESERT STORM PRESIDENT CLINTON'S I HAVE A PLAN CAMPAIGN PROMISES HAVE DISSOLVED INTO JELLYLIKE INDECISION WHERE THIS LEADS US YOU ASSERT IS STILL UNCERTAIN HOWEVER CORPORATE INSIDERS WHO FILE THEIR STOCK TRADES WITH THE SEC ARE GIVING A CLEAR INDICATION THEY ARE BAILING OUT BILL CLINTON IS BAD FOR BUSINESS CONSUMER AND BUSINESS CONFIDENCE IS COLLAPSING PRESIDENT CLINTON'S LACK OF LEADERSHIP COULD NOT COME AT A MORE SENSITIVE ECONOMIC TIME 9307190125 930719 ECONOMY CALIFORNIA LAW ALTERS WORKERS' COMPENSATION SAVINGS FROM COST CUTS GO TO BENEFIT EMPLOYEES AND RELIEVE EMPLOYERS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA'S SAGGING REPUTATION AS A PLACE TO DO BUSINESS GOT A BOOST FRIDAY WITH THE PASSAGE OF A SWEEPING PACKAGE OF MEASURES DESIGNED TO FIX THE STATE'S COSTLY FRAUDRIDDEN WORKERS' COMPENSATION SYSTEM THE MEASURES SIGNED FRIDAY BY GOV PETE WILSON AFTER WEEKS OF MARATHON LEGISLATIVE SESSIONS ARE ESTIMATED TO CUT BY AT LEAST 15 BILLION OF THE 11 BILLION ANNUALLY THAT CALIFORNIA EMPLOYERS CURRENTLY PAY OUT IN WORKERS' COMPENSATION CASES HALF THE SAVINGS ARE TO GO TO INCREASED BENEFITS FOR INJURED WORKERS EMPLOYERS ARE TO SAVE ON THE OTHER HALF THE SAVINGS WOULD COME IN PART BY MAKING IT MUCH TOUGHER TO CLAIM STRESS AS A WORKRELATED INJURY AND CLAMPING DOWN ON HOW MANY DOCTORS A WORKER CAN SEE AS WELL AS HOW MUCH CAN BE CHARGED IN DISABILITY CASES WHERE A WORKER HAS TO BE TRAINED TO DO SOMETHING ELSE IN THE PAST CALIFORNIA WORKERS ONLY HAD TO SHOW THAT 10 OF THEIR ALLEGEDLY DISABLING STRESS WAS CAUSED BY THE JOB TO RECEIVE BENEFITS IT WAS A REMARKABLY LOW LEVEL OF PROOF CONSIDERING THAT 42 STATES DON'T ALLOW STRESSRELATED CLAIMS AT ALL UNDER THE LEGISLATION WORKERS NOW HAVE TO SHOW THAT 51 OF THEIR STRESS IS FROM THE JOB TO WIN A CLAIM FOLKS WILL HAVE TO BE ABLE TO PROVE THAT A PSYCHIATRIC INJURY WAS CAUSED BY THE WORKPLACE NOT JUST A SMALL PERCENTAGE SAID STEVE PEACE A DEMOCRATIC ASSEMBLYMAN FROM SAN DIEGO WHO HELPED GUIDE THE LEGISLATION WORKERS ALSO HAVE BEEN ABLE TO GET ESTIMATES FOR TREATMENT FROM AS MANY AS EIGHT PHYSICIANS THE NEW LEGISLATION LIMITS THAT TO THREE DOCTORS AND COSTS TO RETRAIN DISABLED WORKERS WHICH HAVE TYPICALLY RUN MORE THAN 20000 ARE NOW CAPPED AT 16000 THE LEGISLATION ALSO TOUGHENS WORKERS' COMPENSATION FRAUD LAWS AND CUTS WORKERS' COMPENSATION INSURANCE RATES FOR EMPLOYERS BY 7 SOME OF THE REFORM MEASURES INCLUDING THE REDUCED INSURANCE PREMIUMS AND HIGHER STRESS TEST WENT INTO EFFECT IMMED IATELY WHILE OTHERS SUCH AS THE INCREASED BENEFITS FOR INJURED WORKERS ARE TO BEGIN NEXT YEAR THOUGH THE REFORM IS NOT CONSIDERED A CUREALL FOR THE HIGH COST OF DOING BUSINESS IN CALIFORNIA WHICH HAS LOST THOUSANDS OF JOBS TO OTHER STATES IT DOES GIVE BUSINESS SOME BREATHING ROOM IT DOESN'T MEAN ALL THE JOBS WILL RETURN TO CALIFORNIA BUT IT IS A MAJOR STEP TO MAKING IT MORE VIABLE FOR COMPANIES NOT TO VOTE AGAINST CALIFORNIA SAID ED MANGIAFICO CHAIRMAN OF CALIFORNIANS FOR COMPENSATION REFORM A COALITION THAT HAS BEEN PRESSING FOR REFORM FOR EIGHT YEARS IN THE CASE OF HUGHES AIRCRAFT CO THE EL SEGUNDO CALIFBASED UNIT OF GENERAL MOTORS CORP COMPANY OFFICIALS ESTIMATE THEY WILL EVENTUALLY SAVE BETWEEN 2 MILLION AND 35 MILLION ON THEIR 30 MILLIONAYEAR COSTS OF WORKERS' COMPENSATION THE REFORM BEGINS TO TURN AROUND AN OUTOFCONTROL WORKERS' COMPENSATION SYSTEM SAID TED G WESTERMAN HUGHES'S SENIOR VICE PRESIDENT BUSINESS GROUPS APPLAUDED THE ACTION SAYING IT WOULD HELP STANCH THE FLOW OF EMPLOYERS FLEEING CALIFORNIA TO CHEAPER STATES IN ITS FOURYEAR RECESSION CALIFORNIA HAS LOST MORE THAN A MILLION JOBS MANY TO OTHER STATES AND THE HIGH WORKERS' COMPENSATION COSTS HAVE BEEN CITED BY MANY BUSINESSES AS A MAJOR REASON FOR RELOCATING INTEL CORP FOR INSTANCE RECENTLY DECIDED AGAINST CALIFORNIA AS A POTENTIAL SITE FOR A NEW FABRICATION PLANT AFTER FINDING THAT IT WOULD HAVE TO PAY AN EXTRA 80 MILLION A YEAR IN COMPENSATORY COSTS SAID KIRK WEST PRESIDENT OF THE CALIFORNIA CHAMBER OF COMMERCE THE COMPUTER FIRM IN SANTA CLARA CALIF SETTLED ON NEW MEXICO INSTEAD THE REFORM PACKAGE SENDS OUT A MESSAGE THAT CALIFORNIA IS BACK IN BUSINESS SAID WILLIAM CAMPBELL PRESIDENT OF THE CALIFORNIA MANUFACTURERS ASSOCIATION A TRADE GROUP IN SACRAMENTO CALIF THE REFORM WAS OPPOSED BY SOME DOCTOR AND LAWYER GROUPS THAT SPECIALIZE IN WORKERS' COMPENSATION CASES THEY ARGUED IT WOULD DEPRIVE MANY LEGITIMATELY INJURED WORKERS OF NEEDED MEDICAL CARE AND FAILS TO ASSURE SMALL BUSINESSES OF ANY MEANINGFUL RELIEF 9307190124 930719 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A GROUP OF RUSSIAN BANKERS APPEALED TO PRESIDENT BORIS YELTSIN TO HELP FIGHT VIOLENT CRIME AGAINST THE EMERGING BUSINESS CLASS THE TRUD NEWSPAPER REPORTED AS ORGANIZED CRIME HAS PENETRATED THE LUCRATIVE COMMERCIAL BANKING SECTOR TRUD SAID AT LEAST 10 BANK MANAGERS HAVE BEEN KILLED IN RECENT MONTHS IN MOSCOW AND ST PETERSBURG AND IN YEKATERINBURG MR YELTSIN'S HOMETOWN IN THEIR APPEAL THE BANK PRESIDENTS SAID THE VERY IDEA OF A RUSSIAN STATE BASED ON THE RULE OF LAW IS THREATENED TRUD SAID CRIMINALS FIRST TARGETED SMALL AND MEDIUMSIZED BANKS THEN MOVED AGAINST BIG FINANCIAL INSTITUTIONS KILLING EMPLOYEES WHO RESISTED THREATS AND BRIBERY OFFERS TAKING WORKERS HOSTAGE AND THREATENING THEIR FAMILIES TRUD SAID LAW ENFORCEMENT OFFICIALS OFTEN HAVEN'T ACTED AGAINST SUCH CRIMES CHINA CONCEDED ITS CUSTOMS SHIPS VIOLATED INTERNATIONAL MARITIME LAW BY BOARDING TWO RUSSIAN VESSELS AT SEA IN JUNE AND JULY IN A CAMPAIGN TO FIGHT SMUGGLING BEIJING SAID IT WOULD TRY TO PREVENT ANY RECURRENCES A RUSSIAN FISHING BOAT AND COMMERCIAL CRAFT WERE DETAINED FOR SEVERAL DAYS THE COMMERCIAL VESSEL WAS REPORTEDLY FIRED ON PROMPTING MOSCOW TO ORDER ITS NAVY TO PROTECT RUSSIAN VESSELS NEAR CHINA AT LEAST FIVE ASIAN NATIONS HAVE ACCUSED CHINESE SHIPS OFTEN WITHOUT OFFICIAL MARKINGS OF FIRING ON AND SEARCHING SHIPS ILLEGALLY IN INTERNATIONAL WATERS FOUR MILLION OF THE 10 MILLION JOBS IN THE FORMER EAST GERMANY HAVE BEEN LOST SINCE REUNIFICATION WITH WEST GERMANY BRANDENBURG STATE'S LABOR MINISTER SAID IN HER STATE REGINE HILDEBRANDT SAID COMPANIES HELD BY GERMANY'S PRIVATIZATION AGENCY HAVE 79000 EMPLOYEES AFTER 46000 WERE DISMISSED LAST YEAR ALONE SHE SAID 80 OF FARM WORKERS AND 60 OF TEXTILE WORKERS HAVE BEEN LAID OFF THOUGH THE FIRING WAVE HAS SUBSIDED MORE JOBS ARE BEING ELIMINATED THAN CREATED EVERY JOB OPENING ATTRACTS ABOUT 40 APPLICANTS COMPARED WITH 5 TO 10 IN WESTERN GERMANY JAPAN'S TALLEST SKYSCRAPER THE 70STORY LANDMARK COMPLEX BUILT FOR 25 BILLION IN YOKOHAMA OPENED WITH 40 OF ITS OFFICE SPACE EMPTY IT HAS TWO MAIN STRUCTURES THE 970FOOT TOWER WITH A HOTEL AND OFFICES AND A FULLY LEASED FIVESTORY SHOPPING MALL FLOOR SPACE TOTALS ABOUT 42 MILLION SQUARE FEET INCLUDING 17 MILLION FOR OFFICES THE BUILDER MITSUBISHI ESTATE CO UNVEILED THE PROJECT IN 1988 AT THE HEIGHT OF THE SOCALLED BUBBLE ECONOMY OF INFLATED LAND AND STOCK PRICES AND CONSTRUCTION BEGAN IN MARCH 1990 THE BUBBLE'S COLLAPSE LEFT A VAST OVERSUPPLY OF OFFICES AND VACANCY RATES ARE STILL RISING KOREA POWER CO SAID IT RECEIVED APPROVAL TO BUILD TWO NUCLEAR POWER PLANTS BY 1999 USING SOUTH KOREA'S OWN TECHNOLOGY FOR THE FIRST TIME THE PLANTS WILL HAVE PRESSURIZEDWATER REACTORS DESCRIBED AS THE MODEL FOR KOREAN ELECTRICITY GENERATORS THE COUNTRY NOW OPERATES NINE NUCLEAR POWER PLANTS AND SEVEN ARE UNDER CONSTRUCTION WITH INVOLVEMENT BY US FRENCH AND CANADIAN COMPANIES IN THE WAKE OF LOSSES FROM THEIR INVESTMENTS IN THE LLOYD'S INSURANCE MARKET AT LEAST 100 BRITISH ARISTOCRATS HAVE SOLD SOME OF THEIR MINOR TITLES THIS YEAR TO PAY DEBTS A LONDON FIRM THAT SPECIALIZES IN SALES OF TITLES SAID HALF ITS CLIENTS WERE BATTERED LLOYD'S BACKERS OR NAMES WHO CAN BE SUBJECT TO UNLIMITED LIABILITIES ON CLAIMS LLOYD'S RECORD LOSSES IN THE PAST THREE YEARS HAVE PLUNGED MANY OF THE 30000 NAMES INTO FINANCIAL DISTRESS MANY ARISTOCRATS HAVE SUBSIDIARY FEUDAL TITLES GRANTING RIGHTS TO BECOME LORD OF PIECES OF LAND BUYERS OF THESE MINOR TITLES AT PRICES RANGING FROM 7400 TO 120000 ARE MOSTLY FROM THE US IN A BID TO IMPROVE AVIATION SAFETY CHINA BLOCKED THE FORMATION OF ANY MORE AIRLINES THE MOVE FOLLOWS RULES ISSUED IN MARCH TO TRY TO SLOW THE EXPLOSIVE CREATION OF TINY ILLEQUIPPED CARRIERS SINCE THE STATE AIRLINE MONOPOLY WAS DEREGULATED FIVE YEARS AGO 35 REGIONAL AND PROVINCIAL AIRLINES HAVE BEEN ESTABLISHED AND APPLICATIONS FOR DOZENS MORE ARE PENDING AT THE CIVIL AVIATION ADMINISTRATION OF CHINA THE COUNTRY IS ONE OF THE GLOBAL AVIATION INDUSTRY'S FASTESTGROWING MARKETS PASSENGER TRAFFIC JUMPED 33 LAST YEAR AND 24 IN THIS YEAR'S FIRST HALF THE RAPID GROWTH HAS LEFT CHINA WITHOUT ENOUGH EXPERIENCED PILOTS CREW MEMBERS AND MAINTENANCE PERSONNEL LAST YEAR FIVE AIRPLANE CRASHES LEFT A TOTAL OF MORE THAN 300 PEOPLE DEAD SOME AIRLINES SHORT ON PLANES AND STAFF HAVE RENTED RUSSIAN JETS COMPLETE WITH PILOTS AND CREWS THE CAAC AIMING TO SLOW THE SECTOR'S DEVELOPMENT TO A RATIONAL SPEED SAID IT WOULD EXAMINE ALL DEALS TO BUY OR RENT AIRCRAFT AND ALLOW FLEET EXPANSIONS ONLY IF THEY CAN BE SUPPORTED BY FLIGHT AND GROUND CREWS AND AIRPORT CAPACITY POLAND'S CONSUMER PRICES IN JUNE WERE 343 ABOVE A YEAR EARLIER PUSHING THE ANNUAL INFLATION RATE TO 374 FOR THE FIRST HALF CHINA'S STATE ECONOMIC AND TRADE COMMITTEE WHICH WILL REGULATE FUTURES AND OPTIONS EXCHANGES WILL SEND PROVINCIAL OFFICIALS TO CHICAGO FOR MANAGEMENT PROGRAMS CONDUCTED BY COMMODITY MARKETS AND THE UNIVERSITY OF ILLINOIS 9307190123 930719 LEISURE & ARTS TELEVISION A SEASON FOR EXPERIMENTATION BY ROBERT GOLDBERG THIS SUMMER THERE'S A SURPRISING AMOUNT TO SEE ON TELEVISION THOUGH YOU WON'T FIND IT IF YOU'RE WATCHING THE NETWORKS BUT OVER ON CABLE AND PUBLIC TV THEY'VE BEEN USING THE VACATION MONTHS WISELY TO TRY OUT PROGRAMMING THAT'S EXPERIMENTAL OFFBEAT OR JUST PLAIN FUN CHANTILLY LACE SHOWTIME THURSDAYS 9 PM EDT IS AN ALLFEMALE BIG CHILL THE STORY OF SEVEN FRIENDS WHO GATHER AT A MOUNTAIN HOME TO CELEBRATE A SERIES OF MILESTONES THEY DANCE THEY SOAK IN A HOT TUB AND MOSTLY THEY TALK ABOUT HIGH SCHOOL THE ANITA HILLCLARENCE THOMAS HEARINGS THE PEOPLE THEY'VE SLEPT WITH THE ONLY MALE WHO ACTUALLY APPEARS ONSCREEN IS THE PIZZADELIVERY GUY WHO PROMPTLY GETS SEDUCED INTERESTINGLY WE NEVER EVEN SEE HIS FACE JUST THE WAY HE FITS INTO HIS JEANS WHAT CHANTILLY LACE OFFERS IS A WEALTH OF ACTING TALENT JOBETH WILLIAMS LINDSAY CROUSE JILL EIKENBERRY ALLY SHEEDY TALIA SHIRE HELEN SLATER MARTHA PLIMPTON AND AN EXPERIMENTAL APPROACH FOR THIS CHAMBER PIECE DIRECTOR LINDA YELLEN SKETCHED OUT CHARACTERS AND A STORY LINE THEN LET THE ACTRESSES IMPROVISE THEIR DIALOGUE UNTIL THEY ARRIVED AT A SCRIPT THE RESULT IS A LYRICAL SEPTET ON LOVE DEATH AND FRIENDSHIP IF CHANTILLY LACE TENDS TO MEANDER IF IT SEEMS A LITTLE OVERSTUFFED WITH EMOTION CRYING HUGGING STARING OFF INTO SPACE STILL A LOT CAN BE FORGIVEN IN A PRODUCTION THIS INTELLIGENT THIS CANDID AND BITTERSWEET LAUGHING THROUGH THE TEARS OVER ON COMEDY CENTRAL THEY'RE JUST LAUGHING AS THEY KICK OFF THEIR FALL SEASON IN JULY WITH POLITICALLY INCORRECT SUNDAYS 8 PM EDT WITH A ROTATING BAND OF GUESTS RANGING FROM ROGER AILES TO FAB 5 FREDDY FROM THE REV AL SHARPTON TO JERRY SEINFELD TO MOON UNIT ZAPPA HOST BILL MAHER EXAMINES THE GREAT THEMES OF THE DAY SEX VIOLENCE AND THE SEATBELT LAW ALONG THE WAY MR MAHER AND HIS PANELISTS MANAGE TO INSULT JUST ABOUT EVERYONE NOT ONLY EASY TARGETS SUCH AS MARGE SCHOTT THE OUTSPOKEN OWNER OF BASEBALL'S CINCINNATI REDS OR THE RECENT NEONAZI DEMONSTRATIONS IN GERMANY THEY WERE VERY EFFECTIVE JUST LAST WEEK THREE FRENCH RESTAURANTS IN MUNICH SURRENDERED WHICH BRINGS ME TO TRAILSIDE PBS CHECK LOCAL LISTINGS MY FAVORITE SHOW SO FAR THIS SUMMER IT'S A DOITYOURSELF GUIDE TO THE GREAT OUTDOORS A SORT OF THIS OLD HOUSE IN HIKING BOOTS HOST JOHN VIEHMAN SUITS UP AND HEADS OUT ON ADVENTURES BACKPACKING IN ALASKA CAVING IN WEST VIRGINIA BACKCOUNTRY SKIING IN COLORADO RAINFOREST HIKING IN PUERTO RICO CLEARLY THESE EXPEDITIONS AREN'T FOR THE SOFA SPUD AND SOME VIEWERS MAY NOT UNDERSTAND THE SWEATY APPEAL OF THIS SHOW BUT FOR THE GROWING NUMBER OF FOLKS CAUGHT UP IN ADVENTURE TRAVEL FOR EVEN THE AVERAGE PERSON IN FACT THE BEST NEWS IS THAT MOST OF THESE TRIPS SEEM ABSOLUTELY DOABLE MR VIEHMAN MAY BE AN EXPERIENCED OUTDOORSMAN AND THE EXECUTIVE EDITOR OF BACKPACKING MAGAZINE BUT HE'S CLEARLY NO MASTER WHEN IT COMES TO KAYAKING OR ROCK CLIMBING ON EACH TREK HE TEAMS UP WITH AN EXPERT TO LEARN TECHNIQUE AND WE'RE ALONG FOR THE RIDE IN THE SERIES OPENER TRAILSIDE GOES TO CANYONLANDS NATIONAL PARK IN MOAB UTAH WHERE MOUNTAIN BIKERS LU WARNER AND SARA BALLANTYNE TEACH MR VIEHMAN THE FINE POINTS OF MOUNTAIN BIKING ON A JOURNEY ALONG THE WHITE RIM TRAIL HE LEARNS ABOUT USING ELBOWS AS SHOCK ABSORBERS ABOUT PEDALING 70 TO 90 BEATS A MINUTE MUCH MORE EFFICIENT FOR YOUR LEGS AND LUNGS ABOUT RIDING SMOOTHLY THROUGH SAND AND MUD AND ABOUT PUTTING YOUR BIKE BACK INTO ALIGNMENT WHEN THE WHEEL STARTS TO WOBBLE AND ON THE WAY WE SEE SOME GORGEOUS VISTAS CANYONS AND ARCHES AND DESERT PANORAMAS THE MOST PERILOUS TERRAIN FOR MR VIEHMAN SEEMS TO BE THE HOST MONOLOGUE WHICH HE DELIVERS WITH A NEOPHYTE'S STIFFNESS STILL ON THE TRAIL OF ADVENTURE HIS WILLINGNESS TO STRUGGLE AND EVEN FAIL IS ENDEARING AS HE REPEATEDLY TRIES TO SCRAMBLE UP A ROCK FACE OR CYCLE UP A ROAD AND REPEATEDLY DOESN'T MAKE IT YOUR ATTITUDE IS WRONG ONE GUIDE TELLS HIM THE GUIDES OF COURSE ARE A SUPERHUMAN SPECIES IMPOSSIBLY HALE AND HEARTY AND ENDLESSLY ENTHUSIASTIC BUT SOME SUCH AS CLIMBER PAUL BORNE ARE GREAT CHARACTERS TOO SLY AND WITTY FULL OF LORE AND LINGO THE ADVENTURER'S JARGON A WAY COOL CLIMBER A RAD DESERT BETTY AND MR VIEHMAN HIMSELF COMES INTO HIS OWN AREA OF EXPERTISE IN THE HIKING SECTIONS AS HE DEMONSTRATES THE TRUCKER'S HITCH KNOT AND DEBATES METHODS OF WATER PURIFICATION IODINE TABLETS VS FILTER SYSTEMS EVEN OF DRYING SOCKS IN THE RAIN FOREST THE RULE IS HIKE COOL AND WET SLEEP WARM AND DRY THIS SHOW LIKE THE TRAIL IS SOMETIMES BUMPY THE PACING SOMETIMES ODD WE WHIZ PAST SECTIONS THAT NEED MORE EXPLANATION HOW TO FIX A WHEEL OR PUT UP A TARP WHAT TO PACK FOR THE TRAIL AND LINGER OVER POINTS THE VIEWER COULD DO WITHOUT A LONG EXCURSION INTO HOW A KAYAK IS BUILT THEN TOO NONE OF THESE TREKS SEEM ESPECIALLY CHEAP EACH SEEMS TO REQUIRE GEAR MADE OF THE LATEST HIGHTECH FABRICS AND METAL ALLOYS THOUSANDDOLLAR MOUNTAIN BIKES AND STATEOFTHEART TENTS BUT THE REAL VALUE OF TRAILSIDE ISN'T THAT IT TELLS YOU WHAT EQUIPMENT TO BUY WHAT LOCATIONS TO VISIT WHAT TECHNIQUES TO USE THE REAL VALUE HERE IS INSPIRATIONAL THE FEELING THAT YOU CAN GO DO IT THE SCENERY IS SPECTACULAR SHEER CLIFFS AND SPARKLING WATER THE ACTION LOOKS LIKE TONS OF FUN AND THE ROAD STARTS FROM YOUR FRONT DOOR IN FACT AS SOON AS I FILE THIS STORY I'M GOING TO GRAB MY BIKE AND HEAD ON OUT 9307190122 930719 VOLKSWAGEN EUROPEAN SALES FELL 291 AS THE MARKET DROPPED 169 IN JUNE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL DUESSELDORF GERMANY VOLKSWAGEN AG LED THE PLUNGE IN NEW CAR SALES IN EUROPE FOR JUNE WITH A 291 DROP IN NEW CAR SALES COMPARED WITH YEARAGO LEVELS VW FARED FAR WORSE THAN THE MARKET AT LARGE WHICH DROPPED 169 LAST MONTH THE FIGURES RELEASED BY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION OR ACEA AN INDUSTRY LOBBYING GROUP SHOWED PARTICULAR PROBLEMS FOR MANUFACTURERS WITH HEAVY EXPOSURE TO THE GERMAN AND THE ITALIAN MARKETS GERMAN AUTO MAKERS MERCEDESBENZ A UNIT OF DAIMLERBENZ AG AND BMW A UNIT OF BAYERISCHE MOTOREN WERKE AG HAD DECLINES OF 227 AND 192 RESPECTIVELY WHILE ITALIAN CAR GROUP FIAT SPA FELL 244 THE ECONOMIC RECESSION IN GERMANY AND THE POLITICAL AND ECONOMIC DISARRAY IN ITALY HAVE SEVERELY UNDERMINED CONSUMER CONFIDENCE IN MAJOR AUTOMOTIVE MARKETS WHICH WILL CONTINUE TO PUT A DRAG ON THE INDUSTRY AS A WHOLE AT LEAST FOR THE REST OF THIS YEAR ANALYSTS SAID BECAUSE VW'S LARGEST MARKET AFTER GERMANY IS THE ITALIAN MARKET THE COUNTRY MIX IS ESPECIALLY UNFAVORABLE FOR VW NOTED FRANCOIS COLLI AUTO ANALYST AT PARIBAS CAPITAL MARKETS IN LONDON IN ADDITION TO ALREADY HIGH INDUSTRIAL AND LABOR COSTS IN GERMANY GERMANBASED PRODUCERS SUCH AS VW SUFFER FROM THE RELATIVE APPRECIATION OF THE MARK WITHIN THE EUROPEAN MONETARY SYSTEM THAT APPRECIATION MAKES GERMANMADE PRODUCTS MORE EXPENSIVE IN OTHER MARKETS BUT ANALYSTS NOTED THAT VW FACES A FURTHER PROBLEM VW IS JUST TOO EXPENSIVE WHEREAS A BMW IS STILL A DESIRABLE PRODUCT IN TERMS OF THE LOOK AND THE IMAGE THE VW GOLF IS A PRETTY BORING CAR FOR THE MONEY AND THE QUALITY DIFFERENCE BETWEEN A VOLKSWAGEN AND A TOYOTA IS NOT SO GREAT ANYMORE TO JUSTIFY THE PRICE DIFFERENCE SAID DANIEL JONES PROFESSOR OF MOTOR INDUSTRY MANAGEMENT AT THE CARDIFF BUSINESS SCHOOL JAPANESE PRODUCERS MEANWHILE CONTINUED TO OUTPERFORM THE MARKET CAPTURING 117 OF THE MARKET UP FROM 103 IN JUNE 1992 JAPANESE CAR MAKERS HAD ONLY A 59 DECLINE IN NEW CAR SALES LAST MONTH AND TOYOTA ACTUALLY POSTED A 51 INCREASE IN SALES THOSE FIGURES PREDICTABLY CAUSED FURTHER CONCERN AMONG EUROPEAN CAR MAKERS WHO WANT JAPAN TO RESTRICT THEIR EXPORTS TO THE EC THE 94 CUT FROM LAST YEAR'S LEVELS THAT WAS AGREED TO IN APRIL WAS BASED ON PREDICTIONS FOR ONLY A 65 DECLINE IN THE EUROPEAN CAR MARKET BECAUSE CURRENT PREDICTIONS ARE NOW FOR A DECLINE OF AROUND 16 FOR THE ENTIRE YEAR EUROPEAN MANUFACTURERS SAY THAT AGREEMENT MUST BE REVISED ELSEWHERE THE ONLY BETTERTHANAVERAGE PERFORMANCES WERE LINKED TO THE MODEL LAUNCHES GENERAL MOTORS CORP'S SALES DECLINE OF JUST 92 WAS ATTRIBUTED TO THE SUCCESS OF THE NEW ASTRA THE COMPANY'S OPEL SUBSIDIARY GAINED IN MARKET SHARE GRABBING 127 COMPARED WITH 116 A YEAR AGO 9307190121 930719 LEISURE & ARTS FIDO'S FUR RECYCLED BY SUSAN G HAUSER PORTLAND ORE I'VE BEEN SITTING HERE STARING AT MY DOG DHAGWAN AND WONDERING WHAT KIND OF SWEATER SHE'D MAKE I SEE DHAGWAN IN A NEW LIGHT SINCE I MADE THE ACQUAINTANCE OF SEVERAL PEOPLE WHO SPIN DOG HAIR INTO YARN MOST OF THEIR CUSTOMERS SEEM TO BE DOG OWNERS WHO CAN'T BEAR TO PART WITH THEIR BELOVED PETS THUS FIDO MAY HAVE LEFT THIS EARTH BUT HE LIVES ON IN THE FORM OF A SWEATER OR A MUFF I FIRST LEARNED ABOUT DOG SPINNERS WHEN MY FRIEND LAURIE WEINSOFT WHO DEVOTES HER LIFE TO WEFT AND WARP CONFESSED THAT SHE IS ONE SHE SHOWED ME SEVERAL BALLS OF YARN SHE HAD RECENTLY SPUN FROM CANINE CURLS LOVINGLY HARVESTED BY A BEREAVED DOG OWNER BEING NEW TO THE CONCEPT OF DOG SPINNING I COMPLETELY MISUNDERSTOOD I PICTURED THE WOMAN SHEARING THE CORPSE BURYING FIDO BALD BUT GETTING A GREAT SWEATER OUT OF IT I RELATED ALL THIS TO MY SISTER SARAH WHOSE DOG ARCHIE HAD GIVEN UP THE GHOST JUST A FEW DAYS EARLIER SARAH WAS TAKEN BY THE THOUGHT OF A NICE LITTLE BLACK SWEATER AS A REMEMBRANCE SHE MUSED MAYBE I SHOULD DIG UP ARCHIE BUT DON'T TOUCH THAT SPADE I SUBSEQUENTLY LEARNED THAT CLIENTS OF DOG SPINNERS ARE CHARACTERIZED BY THEIR INCREDIBLE FORESIGHT THEY START PICKING THE FLUFF FROM FIDO'S BRUSH WHEN HE'S A MERE PUP BY THE TIME HE DIES THERE COULD BE A WHOLE CLOSET FULL OF HIS FUR JUST ITCHING TO BE MADE INTO A GARMENT OR TWO TO PROVE THAT SHE'S NOT THE ONLY DOG SPINNER ON THE BLOCK LAURIE TOOK ME TO AN EVENT CALLED THE BLACK SHEEP GATHERING FROM ALL OVER THE STATE SPINNERS WEAVERS SHEEP GROWERS AND THE LIKE CONVERGED IN THE TOWN OF EUGENE TO SHOW THEIR WARES LAURIE WARNED ME THAT HER FELLOW DOG SPINNERS WOULD FIND IT CURIOUS THAT I FOUND THEM CURIOUS SURE ENOUGH THE FIRST DOG SPINNER I APPROACHED TAMARRA PICCOLO OF ESTACADA SAW NOTHING UNUSUAL ABOUT SPINNING DOG HAIR IN FACT DOG HAIR SEEMED PRETTY TAME TO HER COMPARED WITH SOME OF THE MATERIAL SHE'S USED WOLF BUFFALO CAMEL AND LION HAIR WHEN YOU SPIN YOU START LOOKING AT ANIMALS DIFFERENTLY SHE TOLD ME DEBBIE GILDING OF ROSEBURG SAID SHE SPINS CAT HAIR TOO IT WOULD TAKE ONE CAT TO MAKE A TEA COZY SHE SURMISED BUT CAT HAIR IS DIFFICULT TO WORK WITH THE DOWNY UNDERCOAT OF LONGHAIRED DOGS GOLDEN RETRIEVER NEWFOUNDLAND KUVASZ IS PREFERRED MS GILDING SAID A WOMAN RECENTLY BROUGHT HER FOUR POUNDS OF HAIR FROM HER FAITHFUL SAMOYED ALL OF IT ACQUIRED BY PICKING CLUMPS FROM THE DOG'S BRUSH THE DOG WAS GETTING ON IN YEARS AND THE OWNER WANTED A LASTING SOUVENIR MS GILDING GAVE HER MORE THAN SHE'D BARGAINED FOR ONE SWEATER TWO PAIRS OF SOCKS TWO SCARVES AND TWO HATS MS GILDING'S FAVORITE DOGSPINNING PROJECT WAS A GIFT FOR HER MOTHERINLAW WHO MANAGED TO COLLECT SOME FUR FROM HER SAINT BERNARD SAMANTHA JUST IN THE NICK OF TIME THE DOG EXPIRED BUT NOT BEFORE IT SHED WHAT BECAME A NICE LITTLE BALL OF YARN SAMANTHA ONCE LAY ON HER OWNER'S FEET TO KEEP THEM WARM SO MS GILDING THOUGHT IT ONLY FITTING THAT WHAT REMAINED OF SAMANTHA BE KNIT INTO BED SOCKS I GAVE THEM TO HER FOR CHRISTMAS AND SHE CRIED SAID MS GILDING THAT WAS A HEARTWARMING TALE BUT I COULDN'T HELP WONDERING WHAT THOSE TREASURED BED SOCKS SMELLED LIKE OR IF THEY HAD FLEAS I LIVE WITH A DOG YOU SEE AND DON'T TELL DHAGWAN I SAID THIS I SORT OF LOOK FORWARD TO THE DAY WHEN MY HOUSE DOESN'T SMELL LIKE HER WHICH BRINGS ME TO ANOTHER CONCERN THOSE PEOPLE WHO ADORN THEMSELVES WITH WITH DOG SWEATERS DO THEY SMELL LIKE WET DOGS IF THEY'RE CAUGHT IN THE RAIN I GUESS IF YOU REALLY LOVE YOUR DOG IT WOULDN'T MATTER OBSERVED ALESE SCHROEDER OF CAVE JUNCTION BUT MS SCHROEDER SAID THE DISTINCTIVE ODOR IS THE VERY REASON SHE WILL GLADLY SPIN THE HAIR OF A GOAT A SHEEP OR A LLAMA BEFORE SHE'LL AGREE TO SPIN FIDO'S TRESSES IT'S NOT MY FIRST CHOICE SHE SAID I DON'T DO IT CHEAP AND I DON'T ADVERTISE SHE SAID WHEN SHE RECENTLY AGREED TO MAKE TWO HATS FROM A CUSTOMER'S DOG HER GREATEST WORRY WAS FLEAS SHE PUT THE BAG OF HAIR IN HER FREEZER AND KEPT IT THERE FOR A WEEK THAT MAY HAVE KILLED THE FLEAS BUT THE SMELL WOULDN'T DIE ESPECIALLY WHEN SHE WASHED THE YARN BEFORE KNITTING THE HATS I COULD JUST IMAGINE BEING OUT IN THE RAIN SHE SAID WRINKLING HER NOSE BUT RIKE DUNLAP AN ARDENT DOG SPINNER FROM EATONVILLE WASH THREW COLD WATER ON MS SCHROEDER'S COMPLAINT HAVE YOU EVER SMELLED A SHEEP IN THE PASTURE SHE DEMANDED MS DUNLAP SPECIALIZES IN CHOWS WHICH SMELL NO WORSE THAN SHEEP SHE MAINTAINED SHE MAKES SWEATERS AND HATS FROM THEM AND SELLS THE GARMENTS AT GATHERINGS OF CHOW FANCIERS PEOPLE PAY GOOD MONEY FOR CHOW SWEATERS SHE CONFIDED BUT I NOTICED AT THE BLACK SHEEP GATHERING THAT NOT TOO MANY PEOPLE WERE SHOWING OFF GARMENTS THEY HAD MADE FROM DOG HAIR I SAW A FEW SCARVES AND TAMS BUT THEY WERE HYBRIDS MADE FROM HALF SHEEP AND HALF SHEEPDOG I'M STILL NOT TEMPTED TO HAVE A SWEATER MADE OUT OF DHAGWAN FOR ME I THINK PHOTOS WILL SUFFICE AS REMINDERS OF HER NOT TO MENTION THE RIPS IN THE FURNITURE THE CLAW MARKS ON THE DOOR AND THE ESSENCE OF DHAGWAN PERMEATING OUR CARPET BUT AT LEAST I'M NOW AWARE THAT DOG SPINNERS ARE EVERYWHERE IN FACT JUST THE OTHER DAY A FRIEND WAS TELLING ME ABOUT A FIBERARTISTS' FASHION SHOW HE AND HIS WIFE ATTENDED WHICH OBVIOUSLY HAD BEEN INFILTRATED BY A DOG SPINNER THE TITLE OF HER ENSEMBLE GAVE HER AWAY WHEREAS THE OTHER DESIGNERS HAD ARTSY NAMES FOR THEIR CLOTHES SHE HAD DUBBED HER OUTFIT DOGS I HAVE KNOWN MS HAUSER IS A WRITER IN PORTLAND 9307190120 930719 LEISURE & ARTS BOOKSHELF AN ECONOMIST'S ANSWER TO DEPRESSION BY DAVE SHIFLETT MANY OF US KNOW JULIAN L SIMON AS THE AUTHOR OF THE ULTIMATE RESOURCE AND THE ECONOMIC CONSEQUENCES OF IMMIGRATION WHICH IF MORE WIDELY READ MIGHT CUT DOWN ON THE RAVINGS ABOUT ZULU INFESTATION AND THE NEED TO FENCE OUT MEXICAN IMMIGRANTS BUT MR SIMON IS MORE THAN A MERE ECONOMIST AND VISIONARY HE IS ALSO A DEPRESSIVE WHO SPENT 13 YEARS IN THE GRIPS OF A MAJOR SEVENHEADED FUNK AFTER ATTEMPTING VARIOUS TREATMENTS AND CURES WITHOUT SUCCESS MR SIMON UNDERTOOK SOMETHING CALLED COGNITIVE THERAPY AND IN A COUPLE OF WEEKS WAS WALKING ABOUT CLICKING HIS HEELS LIKE A BARFLY WITH A BREWERY PASS HIS TRANSFORMATION CAME IN 1975 AND HE HAS NOW WRITTEN A BOOK EXPLAINING HOW HE ACHIEVED HIS LASTING TRIUMPH GOOD MOOD THE NEW PSYCHOLOGY OF OVERCOMING DEPRESSION OPEN COURT 311 PAGES 1895 AS WE ALL KNOW THERE IS A TENDENCY IN THIS THERAPEUTIC AGE FOR SOME OF THE AFFLICTED TO MOAN DRAMATICALLY ABOUT THEIR MALADIES PERHAPS TO CURRY PITY OR TO EARN AN APPEARANCE ON DONAHUE OR MAYBE JUST TO ADD A HEROIC ELEMENT TO THEIR LIVES BUT THIS GROWS OLD QUICKLY AND SOME OF US ARE TEMPTED TO ASK IF WE MIGHT SEND OVER A LOADED REVOLVER JUST TO KEEP ALL THE OPTIONS OPEN MR SIMON IT IS GOOD TO REPORT DOES NOT SPEND MUCH TIME CLUTCHING AT HIS HEART AND INSTEAD WRITES OF HIS TROUBLE WITH COMMENDABLE STOICISM HE SUMS UP HIS SITUATION THIS WAY I WAS DEPRESSED BADLY DEPRESSED FOR 13 LONG YEARS FROM EARLY 1962 TO EARLY 1975 WHEN I SAY THAT I WAS DEPRESSED I MEAN THAT EXCEPT FOR SOME OF THE HOURS WHEN I WAS WORKING OR PLAYING SPORTS OR MAKING LOVE I WAS ALMOST CONTINUOUSLY CONSCIOUS OF BEING MISERABLE AND I ALMOST CONTINUOUSLY REFLECTED ON MY WORTHLESSNESS I WISHED FOR DEATH AND REFRAINED FROM KILLING MYSELF ONLY BECAUSE I BELIEVED THAT MY CHILDREN NEEDED ME JUST AS ALL CHILDREN NEED THEIR FATHER ENDLESS HOURS EVERY DAY I REVIEWED MY FAULTS AND FAILURES WHICH MADE ME WRITHE IN PAIN NOT ONE TO TAKE A DIP AT LOURDES MR SIMON DABBLED IN THE USUAL HEADSHRINKER FARE BUT VICTORY CAME AFTER HE GRASPED AT COGNITIVE THERAPY IN LAY TERMS THIS THERAPY RECOGNIZES THAT THE MIND SOMETIMES BEHAVES LIKE A MAD DOG BUT THAT THE DOG CAN BE BROUGHT TO HEEL OFTEN BY THE LONE EFFORTS OF ITS OWNER THOUGH HE RECOGNIZES THAT SOME THERAPISTS ARE WORTHWHILE THE AUTHOR LOSES LITTLE TIME IN SLITTING THE CUSHIONS ON THE OLD CONSULTING COUCH TRADITIONAL THERAPY MR SIMON WRITES IN HIS INTRODUCTION WAS FOUNDED UPON THE CRUCIAL ASSUMPTION THAT PEOPLE ARE IRRESISTIBLY DISTURBED BY THEIR PAST EXPERIENCES AND CANNOT CHANGE THEIR EMOTIONAL LIFE BY CHANGING THEIR CURRENT PATTERNS OF THINKING RECENT SCIENTIFIC RESEARCH HAS SHOWN HOWEVER THAT THIS ASSUMPTION IS FALSE COGNITIVE THERAPY MEANWHILE BEGINS WITH THE ASSUMPTION THAT WE HAVE CONSIDERABLE CONTROL OVER OUR OWN THINKING BUT MR SIMON'S SUPREME ACT IS THIS HE HAS INCLUDED A THERAPIST WITH HIS BOOK NOT A LIVE ONE THANK GOODNESS BUT A COMPUTER PROGRAM FOR IBMCOMPATIBLE OR APPLE MAC SYSTEMS WITH WHICH READERS CAN PLOT THEIR RECOVERY THOUGH A SERIES OF CONVERSATIONS A SORT OF SOCRATIC SOFTWARE THOUGH FEW OF US NEED A PRIMER ON THE COMPUTER'S SUPERIORITY OVER THE TYPICAL HUMAN THE AUTHOR TOUCHES ON SOME HIGHLIGHTS THE COMPUTER IS NOT SUBJECT TO SOME FAILINGS OF HUMAN THERAPISTS THE COMPUTER NEVER WEARS OUT FROM FATIGUE LATE IN THE DAY BECOMING INATTENTIVE AND THEREFORE USELESS THE COMPUTER NEVER BURNS OUT FROM EMOTIONAL OVERLOAD AS IS NOT UNCOMMON WITH HUMAN THERAPISTS BECAUSE THEY ARE HUMAN THE COMPUTER NEVER BECOMES INVOLVED WITH THE CLIENT IN A TROUBLING SEXUAL RELATIONSHIP AS OCCURS IN A SURPRISINGLY LARGE NUMBER OF CASES RECENT REPORTS INDICATE TO TEST THE THEORY THIS PATIENT BOOTED UP AND ASKED THE COMPUTER PROGRAM VIA KEYBOARD IF IT WOULD LIKE TO GO OUT FOR A DRINK REALLY IT RESPONDED WHAT DO YOU ENJOY MOST ABOUT ME YOUR RED HAIR AND EXCEPTIONAL LEGS THE PATIENT RESPONDED YOU THINK I'M A BEAUT THE COMPUTER BLUSHED THE PATIENT LAID IT ON THICK CAUSING THE PREY TO PURR YOU HAVE AN ACTIVE IMAGINATION YET HOPES THAT THIS MIGHT LEAD SOMEWHERE WERE DASHED WHEN THE PATIENT SPOKE OF WHIPS AND OTHER INSTRUMENTS OF PLEASURE HAVE I GIVEN YOU ANY INDICATION THAT I CAN'T WITHSTAND WHATEVER YOU POSE TO ME RESPONDED THE SOFTWARE ITS THEORETICAL LEGS FIRMLY CROSSED MR SIMON TOUCHES ON A FEW OTHER POSSIBLE WAYS TO RISE ABOVE DEPRESSION INCLUDING RELIGIOUS CONVERSION THOUGH HE IS NOT A RELIGIOUS MAN HIMSELF HIS ASSAULT ON DEPRESSION WAS AIDED BY AN ORTHODOX FRIEND WHO REMINDED HIM OF THE RELIGIOUS INJUNCTIONS TO VALUE LIFE AND ON THE SABBATH TO GIVE ONE'S WORLDLY PROBLEMS A REST IN AT LEAST ONE INSTANCE THE AUTHOR SEEMS TO HAVE GIVEN HIS MIND TOO MUCH OF A REST A DEATH OF A SPOUSE OR CHILD OR PARENT IS ANOTHER FACT WITH WHICH ONE CANNOT DEAL AS FLEXIBLY AS ONE CAN CHANGE TENNIS PARTNERS HE WRITES WE ASSUME THAT THE INCLUSION OF THAT GEM DIDN'T JACK UP THE BOOK'S PRICE TOO TERRIBLY MUCH MR SHIFLETT IS DEPUTY EDITORIAL PAGE EDITOR OF THE ROCKY MOUNTAIN NEWS IN DENVER 9307190119 930719 WHO'S NEWS TALENT AGENT MEYER KEEPS STARS BEAMING BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL WHEN SYLVESTER STALLONE'S CURRENT THRILLER CLIFFHANGER WAS RUNNING OVER BUDGET THE STAR PUT UP 750000 OF HIS OWN FUNDS TO FILM A MIDAIR RESCUE SCENE HE FELT WAS CRUCIAL TO THE MOVIE RON MEYER CHIPPED IN MORE THAN 100000 OF HIS OWN MONEY TOO THOUGH BEING AGENT TO HOLLYWOOD'S HOTTEST STARS USUALLY MEANS TAKING 10 INSTEAD OF PAYING IT MR MEYER IS KNOWN FOR GOING THE EXTRA MILE FOR HIS CLIENTS AS PRESIDENT OF HOLLYWOOD'S CREATIVE ARTISTS AGENCY HE PERSONALLY REPRESENTS MICHAEL DOUGLAS GOLDIE HAWN MERYL STREEP DEMI MOORE TOM CRUISE WHOOPI GOLDBERG MADONNA AND WARREN BEATTY TO NAME A FEW MR MEYER HAS KEPT A LOW CORPORATE PROFILE COMPARED WITH HIS WELLKNOWN PARTNER CAA CHAIRMAN MICHAEL OVITZ BUT MR MEYER'S ROLE IS BECOMING INCREASINGLY PIVOTAL AS MR OVITZ HAS CAST HIS NET WELL BEYOND THE BASIC TALENT BUSINESS ADVISING CORPORATE CLIENTS LIKE SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO AND COCACOLA CO THESE DAYS MR OVITZ IS GLOBETROTTING TO COUNSEL FRENCH BANK CREDIT LYONNAIS ON RESTRUCTURING ITS TROUBLED ENTERTAINMENTLOAN PORTFOLIO WHILE MR OVITZ REMAINS DEEPLY INVOLVED IN THE AGENCY IT FALLS LARGELY TO THE 48YEAROLD MR MEYER TO MANAGE THE MOTIONPICTURE TALENT BUSINESS ABOUT TWOTHIRDS OF CAA'S CLIENTS MIKE OVITZ HAS BEEN IDENTIFIED AS THE POWER IN HOLLYWOOD SAYS RAY STARK THE VETERAN PRODUCER OF SUCH FILMS AS FUNNY GIRL AND THE WAY WE WERE RON MEYER IS THE POWER BEHIND THE POWER ADDS MOVIE AND RECORD MOGUL DAVID GEFFEN RONNIE IS THE GLUE THAT HOLDS CAA TOGETHER MR OVITZ'S FORAYS BEYOND THE AGENCY BUSINESS HAVE LED SOME TO SPECULATE THAT HE WILL ONE DAY LEAVE CAA TO TAKE OVER A MAJOR STUDIO OR LAUNCH A NEW BUSINESS MR OVITZ DENIES HE HAS ANY PLANS TO DO SO HOWEVER AND MR MEYER SAYS HE ISN'T WORRIED ABOUT LOSING HIS PARTNER MY DESIRE IS THAT NOTHING CHANGES HE MAINTAINS BUT THIS COMPANY IS SET UP TO CONTINUE NO MATTER WHAT HAPPENS BUT SOME DOUBT THAT MR MEYER AND OTHER CAA EXECUTIVES COULD MANAGE THE AGENCY AS WELL WITHOUT MR OVITZ OVER THE LAST YEAR RIVALS INTERNATIONAL CREATIVE MANAGEMENT AND THE WILLIAM MORRIS AGENCY HAVE SNAPPED UP SMALLER AGENCIES TO EXPAND THEIR ROSTER OF TALENT AND ADD AGGRESSIVE YOUNG AGENTS BOTH AGENCIES ARE NOW REDOUBLING THEIRFFORTS TO LURE NEW CLIENTS WHILE ICM AND WILLIAM MORRIS EACH BOAST MORE THAN 2500 CLIENTS TO CAA'S 650 CAA IS CONSIDERED THE MOST POWERFUL AND THOUGHT TO BE THE MOST PROFITABLE BECAUSE ITS CLIENTS ARE THE HIGHESTPAID TALENT IN HOLLYWOOD AND SO FAR CAA HASN'T BEEN HURT BY NEW COMPETITION NINE MONTHS AFTER HOLLYWOOD'S CONVULSIVE SHAKEOUT OF TALENT AGENCIES CAA REMAINS THE INDUSTRY'S TOP POWER BROKER CONCLUDED TRADE PAPER VARIETY RECENTLY INDUSTRY EXECUTIVES CREDIT CAA'S CONTINUED DOMINANCE IN LARGE PART TO ITS INTERNAL TEAMWORK MR MEYER AND MR OVITZ INSIST AGENTS SHARE THEIR CLIENT INFORMATION AND PLANS WITH ONE ANOTHER AT RIVAL FIRMS AGENTS TEND TO GUARD THEIR CLIENTS AND OPERATE INDEPENDENTLY OF COLLEAGUES MR OVITZ CALLS MR MEYER HIS ALTER EGO AND SAYS HE RARELY MAKES A MOVE WITHOUT BOUNCING IT OFF HIS PARTNER MR MEYER IS STRIKINGLY DIFFERENT IN BACKGROUND AND STYLE FROM THE BUTTONDOWN UCLAEDUCATED MR OVITZ MR MEYER JOKES THAT HE WOULDN'T QUALIFY FOR A JOB IN CAA'S MAILROOM IF HE APPLIED TODAY A HIGHSCHOOL DROPOUT FROM A TOUGH WEST LOS ANGELES NEIGHBORHOOD HE ENLISTED IN THE MARINE CORPS AT 17 AND LATER DID ODD JOBS UNTIL FINDING WORK AS A MESSENGER AT A SMALL TALENT AGENCY HE LATER MOVED UP TO A JOB IN WILLIAM MORRIS'S TV DEPARTMENT SAYING HE HAD GRADUATED FROM COLLEGE HE SAYS THEY NEVER CHECKED A FEW YEARS AFTER THAT ALONG WITH MR OVITZ AND THREE OTHERS MR MEYER LEFT WILLIAM MORRIS TO START CAA MR MEYER CREDITS MR OVITZ WITH INSPIRING HIM EVER SINCE I WOULD HAVE SETTLED FOR A LOT LESS IF IT WASN'T FOR MIKE HE SAYS MR OVITZ OVER THE YEARS GAINED A REPUTATION AS HOLLYWOOD'S MOST POWERFUL PLAYER AND A TOUGH ADVERSARY AND THE SOFTSPOKEN MR MEYER HAS OFTEN BEEN PORTRAYED AS THE GOOD COP TO MR OVITZ'S BAD COP BUT AS CLIENT WARREN BEATTY NOTES HE HAS THE EQUAL AMOUNT OF TOUGHNESS THAT MIKE HAS NO ONE SHOULD MISTAKE RONNIE'S GOOD HUMOR FOR A LACK OF STRENGTH MR MEYER'S LOW PROFILE ALSO PLEASES SUPERSTAR CLIENTS AT A TIME WHEN IN THE AGENCY BUSINESS EVERYONE SEEMS TO BE SCREAMING FOR CREDIT HE'S SELFDEPRECATING AND HE APPRECIATES TALENT SAYS ACTOR AND PRODUCER MICHAEL DOUGLAS HE HASN'T LET THE SUCCESS OF HIS COMPANY OR HIS INCREASED CORPORATE RESPONSIBILITY OVERTAKE HIS INDIVIDUAL AGENTING MR MEYER VORACIOUSLY READS NOVELS AND SCRIPTS WORKS THE PHONES AND PLAYS THE DIPLOMAT HE SOOTHED THE FRICTION BETWEEN WALT DISNEY CO AND WHOOPI GOLDBERG ON THE SET OF SISTER ACT AND HELPED BOTH SIDES AGREE TO A SEQUEL PRODUCER JOEL SILVER SAYS MR MEYER HAS A WAY OF PERSUADING DIFFICULT CLIENTS TO ADHERE TO THE TERMS OF THEIR CONTRACTS IF THERE'S A PROBLEM WITH A CLIENT YOU GO TO RONNIE SAYS MR SILVER MR MEYER HAS MADE SOME ARGUABLY BAD CALLS IN HIS TIME FOR EXAMPLE HE TALKED GOLDIE HAWN OUT OF DOING THELMA AND LOUISE WHICH BECAME A HUGE HIT FOR GEENA DAVIS AND SUSAN SARANDON HE ALSO ADVISED MR STALLONE TO TRY HIS HAND AT COMEDY WITH OSCAR AND STOP OR MY MOM WILL SHOOT BOTH OF WHICH WERE DISASTERS BESIDES ADVISING HIS OWN ROSTER OF STARS MR MEYER RIDES HERD OVER CAA'S HYPERACTIVE POOL OF YOUNG TALENT AGENTS RONNIE IS THE CONSCIENCE OF THE AGENCY SAYS JEFFREY KATZENBERG CHAIRMAN OF WALT DISNEY CO'S STUDIO HE'S THE ONE WHO REMINDS THEM THAT THERE IS A CODE OF HONOR AND ETHICS AND SOMETIMES THE BEST DEAL ISN'T TO TAKE THE LAST NICKEL OFF THE TABLE EVEN IF YOU HAVE THE STRENGTH TO GET IT NOTWITHSTANDING THOSE REMINDERS OR MR MEYER'S PERSONAL POPULARITY HOWEVER CAA ITSELF IS WIDELY VIEWED IN HOLLYWOOD AS A RUTHLESS AND DIFFICULT ADVERSARY THOUGH MR MEYER IS SAID TO HAVE A KEEN EYE FOR UPANDCOMING TALENT HE IS BEST KNOWN FOR CODDLING MATURE ACTRESSES AND SEEING BIGNAME STARS THROUGH CAREER PEAKS AND VALLEYS MR STALLONE SAYS THAT AFTER HIS COMEDY FLOPS MR MEYER STUCK WITH ME THROUGH A LONG DRY SPELL THEN LEANED ON HIM HARD TO DO CLIFFHANGER THE ACTOR WAS RELUCTANT TO EVEN READ A SCRIPT ABOUT A HEROIC MOUNTAINEER TELLING MR MEYER PLEASE DON'T MAKE ME DO ANOTHER MOVIE WHERE HALFWAY THROUGH I HAVE TO EAT MY BEST FRIEND CLIFFHANGER HAS TURNED OUT TO BE A SUCCESS GROSSING MORE THAN 74 MILLION SO FAR MR STALLONE SAYS MR MEYER LITERALLY PUT HIS MONEY WHERE HIS MOUTH WAS ON CLIFFHANGER BY INSISTING ON PUTTING UP 100000 PLUS TO HELP FINANCE THE CRUCIAL SCENE HE GOT HIS MONEY BACK HE'LL FLY ANYPLACE ON EARTH TO HOLD YOUR HAND IF NEED BE MR STALLONE SAYS MR OVITZ DESCRIBES MR MEYER'S SKILL AS BEING A GREAT EQUALIZER WHEN THE ACTOR DIRECTOR AND STUDIO ARE ALL READY TO WALK OUT ON EACH OTHER HE SMOOTHS IT FOR ALL ENDS HE ADDS HE HAS AN EXTRAORDINARY ABILITY TO HANDLE SEEMINGLY INSURMOUNTABLE PROBLEMS SEAMLESSLY 9307190118 930719 TECHNOLOGY COMPUTER SCIENCES WILL PAY 21 MILLION TO SETTLE CHARGES BY US GOVERNMENT BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTER SCIENCES CORP AGREED TO PAY 21 MILLION TO SETTLE CHARGES BY THE JUSTICE DEPARTMENT AND THE ENVIRONMENTAL PROTECTION AGENCY THAT THE COMPANY MADE FALSE AND MISLEADING STATEMENTS AND OVERBILLED THE GOVERNMENT ON A MAJOR EPA CONTRACT AS PART OF THE SETTLEMENT THE EPA LIFTED ITS SUSPENSION OF THE COMPANY'S APPLIED TECHNOLOGY DIVISION WHICH THE AGENCY ON JUNE 21 HAD BARRED FROM BIDDING ON NEW FEDERAL CONTRACTS A SEPARATE ACCORD WITH THE JUSTICE DEPARTMENT'S CIVIL DIVISION RESOLVES ITS CLAIM THAT THE COMPANY MISREPRESENTED THE QUALIFICATIONS OF SOME EMPLOYEES WHO WORKED ON THE CONTRACT COMPUTER SCIENCES A COMPUTER SERVICES CONCERN BASED IN EL SEGUNDO CALIF SAID IT AGREED TO THE JUSTICE DEPARTMENT SETTLEMENT AND THE EPA COMPLIANCE AGREEMENT WITHOUT ADMITTING ANY WRONGDOING THE DIVISION'S BUSINESS WASN'T AFFECTED BY THE BRIEF SUSPENSION THE COMPANY SAID AFTER THE CONTRACT BAN WAS LIFTED ON FRIDAY THE AIR FORCE RENEWED A CONTRACT HELD FOR THE PAST FIVE YEARS BY COMPUTER SCIENCES AND ITS PARTNER RAYTHEON CO THE NEW SIXYEAR CONTRACT IS VALUED AT UP TO 566 MILLION IF ALL OPTIONS ARE EXERCISED THE PARTNERS PROVIDE COMPUTER SUPPORT FOR THE TRACKING OF MISSILES AND SPACE VEHICLES LAUNCHED FROM PATRICK AIR FORCE BASE IN COCOA BEACH FLA SOME ANALYSTS HAD WORRIED THAT COMPUTER SCIENCES MIGHT LOSE THAT BUSINESS BECAUSE OF THE SUSPENSION COMPUTER SCIENCES SHARES CLOSED FRIDAY AT 85125 UP 875 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE SETTLEMENT WAS ANNOUNCED EARLY IN THE TRADING SESSION WORD OF THE AIR FORCE CONTRACT CAME AFTER THE CLOSE OF MARKETS THE EPA DISPUTE INVOLVED CLAIMS BY THE AGENCY THAT IT OVERPAID COMPUTER SCIENCES FOR WORK DONE BY UNDERQUALIFIED EMPLOYEES ON A 347 MILLION CONTRACT AWARDED IN 1990 THE CLAIMS WERE TRIGGERED BY LAST YEAR'S INTERNAL EPA AUDIT AND CONGRESSIONAL HEARINGS THAT HARSHLY CRITICIZED THE AGENCY'S EPA CONTRACTMANAGEMENT PROCEDURES IN THE WAKE OF THE CRITICISM THE EPA DECIDED TO REDUCE ITS RELIANCE ON COMPUTER SCIENCES ITS LARGEST CONTRACTOR LAST JULY THE AGENCY SAID IT WOULD PHASE OUT ITS COMPUTER SCIENCES CONTRACT BY SEPT 30 OF THIS YEAR RATHER THAN EXERCISE THE FOURTH AND FIFTH YEARS OF THE CONTRACT THAT DECISION COULD CUT THE CONTRACT'S VALUE TO BETWEEN 150 MILLION TO 200 MILLION A COMPANY SPOKESMAN SAID AS PART OF THE SETTLEMENT COMPUTER SCIENCES AGREED TO STRENGTHEN ITS ETHICS PROGRAMS BY APPOINTING AN INTEGRITY OFFICER THE OFFICER WILL BE CAREFULLY REVIEWING PROPOSALS AND BIDS TO MAKE SURE THEY ARE IN COMPLIANCE WITH ALL REGULATIONS THE SPOKESMAN SAID THE OFFICER WILL BE A SENIOR EXECUTIVE REPORTING TO MILTON COOPER PRESIDENT OF THE SYSTEMS GROUP WHICH HANDLES COMPUTER SCIENCES' FEDERAL CONTRACTING THE AGENCY ALSO BARRED A VICE PRESIDENT OF THE APPLIED TECHNOLOGY DIVISION FROM ANY GOVERNMENT WORK FOR TWO YEARS COMPUTER SCIENCES FURTHER AGREED TO REASSIGN TWO OTHER EMPLOYEES TO NONGOVERNMENT JOBS OVER THE SAME PERIOD ALTHOUGH THEY WEREN'T FORMALLY DEBARRED ALL THREE REMAIN EMPLOYED BY THE COMPANY THE EPA CALCULATED THAT IT OVERPAID THE COMPANY BY ABOUT 572000 COMPUTER SCIENCES SAID TO SETTLE THE JUSTICE DEPARTMENT'S FALSESTATEMENT CLAIM COMPUTER SCIENCES AGREED TO PAY 11 MILLION THE COMPANY SAID AND THE COMPANY WILL PAY THE EPA 1 MILLION TO RESOLVE VARIOUS CONTRACT ISSUES INCLUDED IN THAT FIGURE IS 150 000 TO COVER THE COST OF THE INVESTIGATION 9307190117 930719 LETTERS TO THE EDITOR NO UNETHICAL DEALINGS WITH HOME SHOPPING I WOULD LIKE TO CORRECT THE MISIMPRESSION THAT CALIFORNIA FEATHER & DOWN CORP SOMEHOW BENEFITED ROY SPEER CHAIRMAN OF THE HOME SHOPPING NETWORK HSN IN EXCHANGE FOR THE NETWORK DOING BUSINESS WITH CALIFORNIA FEATHER NEW ALLEGATIONS SUGGEST BROADER PATTERN OF SUSPECT PRACTICES AT HOME SHOPPING JUNE 21 THIS IMPRESSION IS QUICKLY DISPELLED BY ADDITIONAL FACTS THE COMPANY'S PRODUCT FAILURE RATE IS ONE OF THE LOWEST IN THE INDUSTRY ONLY 2 OF ALL SHIPMENTS MADE BY CALIFORNIA FEATHER TO HSN FAILED BOTH WERE RETURNED TO THE COMPANY FOR REPLACEMENT AND A 10 PENALTY THE NEVADA LOCATION FOR OUR PLANT WAS CHOSEN AFTER I HAD SOLD FEATHER AND DOWN PRODUCTS TO HSN FOR SEVEN YEARS IT WAS DONE IN LIGHT OF GROWING SALES FOR THE PURPOSE OF MITIGATING TRANSPORTATION COSTS AND DELAYS CREATED BY THE DISTANCE BETWEEN OUR CALIFORNIA PLANT AND HSN'S NEVADA DISTRIBUTION FACILITIES THE FACT THAT MR SPEER HELD AN INTEREST IN THE LAND DOES NOT TAKE AWAY FROM THE FACT THAT CALIFORNIA FEATHER LEASED THE BEST AVAILABLE SPACE FOR ITS MONEY AT A MARKET PRICE 9307190116 930719 MARKETING & MEDIA JURASSIC PARK' IS POISED TO SET RECORDS OVERSEAS HOLLYWOOD THE DINOSAURS OF JURASSIC PARK ARE WOWING MOVIEGOERS AROUND THE WORLD MANY MOVIE EXECUTIVES ARE EXPECTING IT TO BECOME THE HIGHESTGROSSING INTERNATIONAL HIT EXCLUDING THE US UNIVERSAL EXECUTIVES AT THIS POINT ARE PREDICTING ONLY THAT JURASSIC PARK WILL BECOME THE HIGHESTGROSSING MOVIE IN JAPAN BESTING ET THE EXTRATERRESTRIAL THE SUCCESS OF JURASSIC PARK IN THE US IS HELPING UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA TO SECURE UNUSUALLY WIDE RELEASES OVERSEAS IN THE US THE MOVIE SOLD AN ESTIMATED 105 MILLION OF TICKETS OVER THE WEEKEND BRINGING ITS DOMESTIC TAKE TO 2554 MILLION UNIVERSAL SAID THE MOVIE NOW RANKS AS THE FOURTH HIGHESTGROSSING PICTURE EVER IN THE US EXCLUDING GROSSES FROM REISSUES 9307190115 930719 AUSTRALIA PEDDLES ONCECONFIDENTIAL OVERSEAS DISPATCHES SUBSCRIBERS FROM DOWN UNDER ARE THE ONLY ONES ALLOWED TO ORDER GOVERNMENT DATA BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA IT'S NOT QUITE THE STUFF OF CLOAK AND DAGGER INTRIGUE BUT A PERSON CAN ALWAYS PRETEND STARTING THIS MONTH AUSTRALIA'S DEPARTMENT OF FOREIGN AFFAIRS AND TRADE IN CANBERRA IS PEDDLING PREVIOUSLY CONFIDENTIAL DISPATCHES FROM ITS INTELLIGENCEGATHERING DIPLOMATS POSTED AROUND THE ASIANPACIFIC REGION TO TANTALIZE POTENTIAL SUBSCRIBERS THE GOVERNMENT LAUNCHED ITS NEW SERVICE IN AN AUSTRALIAN NEWSPAPER WITH HALFPAGE ADVERTISEMENTS EMBLAZONED WITH A LARGE OFFICIALLOOKING SEAL THAT READS FOR AUSTRALIAN EYES ONLY ACCORDING TO THE AD SUBSCRIBERS WILL GET ACCESS TO IMMEDIATE DETAILED AND COMMERCIALLY RELEVANT REPORTS CABLED BY OUR EMBASSIES TO CANBERRA IT PROMISES MISSIVES ON A RANGE OF TOPICS SUCH AS CHANGES IN TRADE AND INVESTMENT REGIMES AND REGIONAL GROWTH PROSPECTS BUT SUBSCRIBERS HOPING FOR SOME JUICY TIDBITS ARE LIKELY TO BE DISAPPOINTED THE CABLES BEING OFFERED CONTAIN ONLY UNCLASSIFIED MATERIAL AN AUSTRALIAN DIPLOMAT SAYS THE CABLES ARE PART OF ROUTINE COMMUNICATIONS TRAFFIC ON POLITICAL ECONOMIC AND OTHER DEVELOPMENTS THAT IS SENT FROM FARFLUNG POSTS BACK TO CANBERRA MARKETED AS CABLE SUBSCRIPTION SERVICE THE DISPATCHES ARE LIMITED TO 11 ASIAN COUNTRIES REFLECTING BOTH AUSTRALIA'S PUSH TO ENTWINE ITSELF WITH THE REGION AND SUBSCRIBER DEMAND AUSTRALIAN OFFICIALS SAY THE AIM IS LESS TO TURN A PROFIT THAN TO HELP BOOST THE NATION'S TRADE BY CONVEYING INFORMATION TO HELP AUSTRALIAN EXPORTERS TAP REGIONAL MARKETS THE GOVERNMENT TESTMARKETED THE SERVICE'S POTENTIAL FOR SIX MONTHS WITH CONFIDENTIAL CABLES FROM ITS CHINABASED DIPLOMATS BASED ON THAT RESPONSE IT IS OFFERING A MINIMUM OF 10 CABLES A YEAR FROM CHINA INDONESIA INDIA AND JAPAN AT A COST OF 150 AUSTRALIAN DOLLARS US102 PER COUNTRY FOR A75 PER COUNTRY SUBSCRIBERS CAN TAP INTO A MINIMUM OF FIVE CABLES A YEAR FROM HONG KONG MALAYSIA THE PHILIPPINES SINGAPORE SOUTH KOREA THAILAND AND TAIWAN AN OFFICIAL INVOLVED IN THE PROJECT STRESSES THAT SALES ARE RESTRICTED TO AUSTRALIAN NATIONALS AND EVEN REFUSED TO SEND AN AMERICAN REPORTER A COPY OF THE PROMOTIONAL BROCHURE HOW DOES THE DEPARTMENT SCREEN POTENTIAL SUBSCRIBERS WE ASK THEM SHE SAYS SOMETIMES WE KNOW THEM USUALLY WE REALLY RELY ON THEIR HONESTY ABOUT 18 MONTHS AGO CANBERRA STARTED SELLING PACKAGES OF INFORMATION ON VARIOUS COUNTRIES CALLED COUNTRY ECONOMIC BRIEFS WHICH HAVE SO FAR RAISED ABOUT A250000 FOR GOVERNMENT COFFERS REPORTS ON CHINA AND INDONESIA HAVE PROVED THE BIGGEST SELLERS VIETNAM AND MALAYSIA ALSO ARE HOT TOPICS WHILE DEMAND FOR EUROPEAN MARKETS IS TEPID THE GOVERNMENT BILLS THE LATEST SERVICE WHICH ALSO DRAWS ON AUSTRALIA'S TREASURY REPRESENTATIVES AS BEING COMPLEMENTARY TO THE PERIODIC BRIEFS BECAUSE IT COVERS SPECIFIC TIMELY ISSUES INDEED SELLING DIPLOMATIC CABLES APPEARS POPULAR ELSEWHERE WASHINGTON FOR INSTANCE MARKETS A COMPUTERIZED TRADE INFORMATION SERVICE THAT COSTS 400 A YEAR WHICH A US DIPLOMAT SAYS CONTAINS VIRTUALLY REPRINTED DIPLOMATIC CABLES ALL UNCLASSIFIED OF COURSE 9307190114 930719 PEMEX SIGNS PACT WITH IDESA MEXICO CITY PETROLEOS MEXICANOS SA SIGNED A LONGTERM CONTRACT WITH MEXICO CITYBASED GRUPO INDUSTRIAL IDESA SA TO SUPPLY ETHYLENE OXIDE FOR THE PRODUCTION OF ETHYL GLYCOL BY IDESA MEXICO'S STATE OIL COMPANY PEMEX WILL SUPPLY 100000 METRIC TONS OF ETHYLENE OXIDE ANNUALLY TO IDESA'S TWO MONOETHYLENE GLYCOL PLANTS FOR A PERIOD OF 15 YEARS THE TWO PLANTS WILL BE BUILT IN COATZACOALCOS VERACRUZ AT A COST OF 108 MILLION AND WILL BE IN OPERATION AT THE END OF 1995 PEMEX RECENTLY SIGNED AN AGREEMENT WITH POLIOLES SA TO SUPPLY ETHYLENE OXIDE FOR A PERIOD OF THREE YEARS POLIOLES IS A JOINT VENTURE BETWEEN MONTERREYBASED GRUPO INDUSTRIAL ALFA AND THE GERMAN PETROCHEMICAL COMPANY BASF 9307190113 930719 THE PHILIPPINES REFINES IMAGE AMONG BANKERS INTERNATIONAL INSTITUTIONS ARE GAINING CONFIDENCE IN ONCERISKY MARKET BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL MANILA PHILIPPINES EARLY LAST MONTH THIS COUNTRY'S POLITICAL LUMINARIES INCLUDING PRESIDENT FIDEL RAMOS AND HIS PREDECESSOR CORAZON AQUINO GATHERED AT MANILA'S SHIMMERING SHANGRILA HOTEL THEIR PURPOSE TO CELEBRATE THE OPENING OF A BANK OFFICE THE GETTOGETHER HOWEVER WAS MORE THAN A MERE RIBBONCUTTING IT MARKED A TAIWANBASED BANK'S DECISION TO OPEN A REPRESENTATIVE OFFICE IN MANILA A MOVE THAT HAS FUELED HOPE THAT THE PHILIPPINES IS SHEDDING ITS REPUTATION AMONG INTERNATIONAL BANKERS AS A PARIAH SENIOR OFFICIALS TOOK OUR OPENING SERIOUSLY SAID AN OFFICIAL WITH CHINA TRUST COMMERCIAL BANK BECAUSE IT SIGNALS A RETURN OF BANKERS' CONFIDENCE SERIOUS INDEED MANY INTERNATIONAL BANKS BADLY BURNED BY MANILA'S FOREIGNDEBT RESTRUCTURING PROGRAM SHARPLY REDUCED THEIR PHILIPPINE ACTIVITIES IN THE PAST DECADE OTHERS PREOCCUPIED WITH CHINA THAILAND AND OTHER MORE ALLURING MARKETS IN THE REGION LEFT ALTOGETHER OVER THE YEARS THE BANKS' RETREAT EXACERBATED THE COUNTRY'S DIFFICULTY IN ATTRACTING FOREIGN CAPITAL AND INVESTMENT THE MARCOS FACTOR BUT SOME BANKS ARE LOOKING ANEW FOR ONE THING THERE'S A PERCEPTION THAT THE POLITICAL RISK HAS LESSENED IN THE SEVEN YEARS SINCE THE FALL OF FERDINAND MARCOS IN ADDITION BANKS ARE ENCOURAGED AT THE SIGHT OF STREAMLINED BANKING REGULATIONS MAKING THEIR WAY THOUGH CONGRESS THEY'VE ALSO NOTED THE GOVERNMENT'S RECENT SUCCESS IN BORROWING ON THE INTERNATIONAL CAPITAL MARKET AFTER A LONG HIATUS IT'S A TIME OF REFLECTION AND POLICY REASSESSMENT FOR EVERY BANK SAID RENATO T DE GUZMAN MANILABASED GENERAL MANAGER OF INTERNATIONALE NEDERLANDEN BANK ALSO KNOWN AS ING BANK VERONICA SANJUAN CHIEF MANILA REPRESENTATIVE FOR BANK OF NEW YORK CO SAID HER SUPERIORS IN THE US HAVE ASKED HER TO LOOK INTO UPGRADING ITS REPRESENTATIVE OFFICE TO A BANKING UNIT A REPRESENTATIVE OFFICE IS A LIAISON'S POST IT DOESN'T CONDUCT BANKING BUSINESS WE FEEL THAT THERE IS POLITICAL STABILITY SHE SAID SUCH A REVIEW WAS UNTHINKABLE ONLY A FEW YEARS AGO IRVING TRUST CO AS THE OFFICE WAS KNOWN BEFORE THE 1988 MERGER OF IRVING BANK CORP AND BANK OF NEW YORK WAS NEARLY DORMANT AFTER THE PHILIPPINE GOVERNMENT IN 1983 IMPOSED A MORATORIUM ON FOREIGNDEBT PAYMENTS IT EVEN CLOSED ITS DOORS BRIEFLY BEFORE REOPENING IN 1990 BUT TIMES HAVE CHANGED FOREIGN BANKS RECENTLY DELIVERED A VOTE OF CONFIDENCE FOR THE PHILIPPINES BY RENEWING SHORTTERM TRADE CREDITS ABOUT 28 BILLION OF SUCH CREDITS WERE FROZEN WHEN THE DEBT CRISIS ERUPTED THE FREEZE WAS LIFTED ON JUNE 30 FREEING BANKS TO TERMINATE THE CREDITS AND EXIT THE COUNTRY MOST HOWEVER INCLUDING BANK OF NEW YORK AND BANK OF BOSTON OPTED TO STAY FOR THE FIRST TIME SINCE 1983 COMMERCIAL BANKS ARE VOLUNTEERING FRESH SHORTTERM FUNDS FOR PHILIPPINE BORROWERS THE PHILIPPINES HAS PROVED TO BE A DIFFICULT MARKET OVER THE YEARS BUT WE AREN'T UNCOMFORTABLE WITH IT SAID DAVID W KRUGER THE SINGAPOREBASED REGIONAL MANAGER OF BANK OF BOSTON MARKET ACCESS AS ENTICEMENT IN PART TO SPEED THEIR RETURN MANILA IS DANGLING BEFORE FOREIGN BANKS THE CHANCE TO GAIN ACCESS TO THE DOMESTIC MARKET LEGISLATION NOW MOVING THROUGH CONGRESS WOULD EASE ENTRY INTO THE MARKET AND REMOVE MANY RESTRICTIONS ON EXPANSION OF BRANCH NETWORKS THE PROPOSALS ALSO WOULD ALLOW FOREIGN BANKS TO BUY AS MUCH AS 70 OF A DOMESTIC BANK CURRENTLY THE LIMIT IS 40 THE HOUSE OF REPRESENTATIVES PASSED A VERSION OF THE BILL IN JUNE THE SENATE WILL DEBATE ITS VERSION IN COMING WEEKS FOUR FOREIGN BANKS ARE CURRENTLY LICENSED TO OPERATE BRANCHES IN MANILA BANKAMERICA CORP UNIT BANK OF AMERICA HSBC HOLDINGS PLC UNIT HONGKONG & SHANGHAI BANKING CORP CITICORP UNIT CITIBANK AND STANDARD CHARTERED PLC A NUMBER THAT HASN'T CHANGED SINCE 1947 IN ADDITION 17 FOREIGN BANKS OPERATE IN THE COUNTRY UNDER OFFSHOREBANKING LICENSES WHICH LIMIT THEM TO FOREIGNCURRENCYDENOMINATED BUSINESS BEFORE 1983 22 FOREIGN BANKS HAD SUCH LICENSES AS A MARKET HOWEVER THE PHILIPPINES DOESN'T INSPIRE OPTIMISM ITS ECONOMY STAGNANT RECENTLY ISN'T EXPECTED TO EXPAND EVEN 2 THIS YEAR TOTAL EARNINGS FOR THE BANKING INDUSTRY WHICH COMPRISES 32 BANKS INCLUDING THE FOUR MAJOR FOREIGN ONES GREW 1 LAST YEAR ON GROWTH IN TOTAL LOANS OF 177 ACCORDING TO A RECENT SURVEY BY ACCOUNTING FIRM SYCIP GORRES VELAYO & CO NONETHELESS FOREIGN BANKS AREN'T DISMISSING THE POTENTIAL FOR INSTANCE THE MEAGER GROWTH IN BANK EARNINGS MASKS THE FACT THAT BANKS ARE HIGHLY PROFITABLE THANKS TO THE WIDE GAP BETWEEN THE RATES THEY CHARGE THEIR CUSTOMERS AND WHAT THEY PAY DEPOSITORS ACCORDING TO THE SGV SURVEY THE AVERAGE RETURN ON ASSETS WAS 26 LAST YEAR COMPARED WITH ABOUT 1 FOR US BANKS NO MATTER HOW MANY BANKS EVENTUALLY DECIDE THEY WANT TO GIVE THE PHILIPPINES A TRY THE GOVERNMENT IS LIKELY TO APPROVE ONLY A HANDFUL OF BRANCH LICENSES WHICH ALLOW HOLDERS TO CONDUCT FULL BANKING SERVICES IT'S DECISION TIME SAID JUSTO A ORTIZ CITIBANK COUNTRY EXECUTIVE FOR INVESTMENT BANKING IF YOU DON'T TAKE ADVANTAGE OF IT THE DOOR MIGHT BE SLAMMED SHUT 9307190112 930719 LETTERS TO THE EDITOR IT'S ALL IN THE MIND RELIVING SEXUAL ABUSE IN DOROTHY RABINOWITZ'S JULY 1 REVIEW OF MULTIPLE PERSONALITIES THE SEARCH FOR DEADLY MEMORIES AN HBO DOCUMENTARY SHE REFERS TO THE FILMED SEQUENCES OF THREE PEOPLE REMEMBERING LONGTERM SEXUAL AND OTHER CHILDHOOD ABUSE AS OBVIOUS FAKERY THESE SEQUENCES WERE NOT FAKED REENACTED REHEARSED OR FALSIFIED IN ANY WAY THEY ARE THE RESULT OF FOLLOWING THESE SUBJECTS TWO WOMEN AND ONE MAN A STUDENT A POLICE OFFICER AND A HOMEMAKER THROUGH THEIR DAILY LIVES OVER A TWOYEAR PERIOD FOR THEM SEXUAL ABUSE WAS DEFINITELY NOT A TRENDY PURSUIT AS MS RABINOWITZ ALLEGES AND MULTIPLE PERSONALITY DISORDER IS NOT A FASHIONABLE AFFLICTION THEY ARE BRAVE PEOPLE WHO HAVE ADDED RISK TO THEIR LIVES AND CAREERS IN ORDER TO SHOW US THE REALITY AND RESULTS OF EXTREME LONGTERM ABUSE THE POTENTIAL OF THE HUMAN MIND TO SURVIVE IT AND ITS ABILITY TO HEAL ITSELF IF GIVEN A PERIOD OF SAFETY IN WHICH TO REMEMBER 9307190111 930719 US ARRESTS MAN SEIZED IN NIGERIA FOR HIJACKING WASHINGTON MOHAMMAD ALI REZAQ WHO SERVED LESS THAN ONETHIRD OF HIS 25YEAR MALTA SENTENCE FOR MURDER AND OTHER CHARGES RELATED TO A 1985 AIR HIJACKING HAS BEEN ARRESTED BY THE US ON CHARGES OF AIR PIRACY MR REZAQ AND TWO ACCOMPLICES HIJACKED EGYPT AIR FLIGHT 648 BETWEEN ATHENS AND CAIRO ACCORDING TO THE JUSTICE DEPARTMENT THE FLIGHT LANDED IN MALTA WHERE MR REZAQ SHOT THREE AMERICANS AND TWO ISRAELIS IN THE HEAD AT POINTBLANK RANGE THE DEPARTMENT SAID TWO OF THE VICTIMS DIED MR REZAQ WAS CONVICTED IN MALTA OF THE HOMICIDES BUT SERVED ONLY SEVEN YEARS OF HIS SENTENCE OVER US OBJECTIONS HE WAS RELEASED IN FEBRUARY HE WASN'T CHARGED WITH PIRACY IN MALTA ON THURSDAY MR REZAQ ATTEMPTED TO ENTER NIGERIA BUT WAS REFUSED ENTRY AND PUT ON A PLANE TO THE US ON FRIDAY HE APPEARED IN US DISTRICT COURT HERE WHERE A PLEA OF NOT GUILTY WAS ENTERED IN HIS BEHALF HIS ATTORNEY CHALLENGED THE RIGHT OF THE US TO CAPTURE HIM OVERSEAS IT WAS THE SECOND SUCH INCIDENT IN TWO YEARS IN THE FIRST AN ACCUSED HIJACKER CAPTURED OFF CYPRUS IS SERVING A 25YEAR TERM 9307190110 930719 ECONOMY AID REQUEST OF 25 BILLION FOR MIDWEST IS FIRST STEP' WASHINGTON PRESIDENT CLINTON'S REQUEST TO CONGRESS FOR 25 BILLION IN EMERGENCY AID FOR THE FLOODDAMAGED MIDWEST IS ONLY THE FIRST INSTALLMENT WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID THIS IS THE FIRST STEP MR PANETTA SAID YESTERDAY ON CBS NEWS'S FACE THE NATION AS THE DAMAGE IS ASSESSED THE WHITE HOUSE WILL SEEK SUPPLEMENTAL AMOUNTS FROM CONGRESS HE SAID MR PANETTA'S COMMENTS ECHOED THOSE OF MR CLINTON AT A MEETING SATURDAY IN ARNOLD MO WITH GOVERNORS AND OTHER OFFICIALS FROM NINE MIDWESTERN STATES THE PRESIDENT WOULDN'T SPECIFY THE ULTIMATE AMOUNT OF FEDERAL AID AND DECLINED TO ENDORSE CHANGES IN FEDERAL POLICY SOUGHT BY THE GOVERNORS SEPARATELY THE WATER ISN'T ON YET IN DES MOINES IOWA BUT THE FINGERPOINTING HAS BEGUN POOR COMMUNICATION BETWEEN AGENCIES POSSIBLE MISCALCULATIONS BY THE NATIONAL WEATHER SERVICE AND REFUSALS OF OFFERS OF HELP APPARENTLY CONTRIBUTED TO THE LOSS OF DES MOINES'S WATER SUPPLY TO FLOOD WATERS ACCORDING TO A COPYRIGHTED STORY IN SUNDAY'S DES MOINES REGISTER 9307190108 930719 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN HERITAGE LIFE INVESTMENT CORP AN OFFERING OF 2480300 COMMON SHARES VIA MERRILL LYNCH & CO ALEX BROWN INC AND GOLDMAN SACHS & CO JOY TECHNOLOGIES INC AN OFFERING OF UP TO 200 MILLION OF SENIOR UNSECURED NOTES DUE 2003 VIA MORGAN STANLEY & CO MARKEL CORP AN OFFERING OF UP TO 100 MILLION OF DEBT SECURITIES 9307190107 930719 REVIEW & OUTLOOK EDITORIAL ASIDES LOADING UP AT EPA THE WONDERFUL WORLD OF THE CLINTON ADMINISTRATION IS STILL UNFOLDING ON FRIDAY MR CLINTON TRIED TO FINISH STOCKING THE EPA WITH HELP AMONG THE CHOSEN SENATOR HOWARD METZENBAUM'S DAUGHTER SALLY WILL BE IN CHARGE OF REGIONAL OPERATIONS SHE'S WORKED FOR THE STATE OF ARKANSAS THE NEW ADMINISTRATOR FOR AIR AND RADIATION IS MARY NICHOLS A LAWYER WITH THE NATURAL RESOURCES DEFENSE COUNCIL ALL WHO COMPLAINED ABOUT INACTION AT EPA CAN FASTEN THEIR SEATBELTS 9307190106 930719 ECONOMY TRACKING THE ECONOMY BY MARY AGNES CAREY OPTIMISM CREATED BY RISES IN APRIL AND MAY HOUSING STARTS MAY HAVE BEEN WASHED AWAY IN JUNE BECAUSE OF HEAVY FLOODING IN THE MIDWEST WE MAY SEE A FLAT NUMBER UNLESS THERE ARE DECLINES IN THE MIDWEST BECAUSE OF THE RAIN MS SCHAJA SAID OF THE REPORT SCHEDULED FOR RELEASE TOMORROW AT THE COMMERCE DEPARTMENT ALTHOUGH SHE EXPECTS MODEST INCREASES IN REGIONS OTHER THAN THE MIDWEST FLOODING IN THAT AREA COULD CAUSE HOUSING STARTS TO DROP 2 IN JUNE MS SCHAJA BELIEVES OTHER FACTORS CONTRIBUTING TO THE LOWERED STARTS INCLUDE HIGH VACANCY RATES AND SLUGGISH CONSUMER CONFIDENCE SINGLEFAMILY CONSTRUCTION SHOULD PICK UP AS CONSUMER CONFIDENCE IMPROVES MS SCHAJA SAID 9307190105 930719 BEVERLY ENTERPRISES POSTS 24 RISE IN NET FOR SECOND QUARTER FORT SMITH ARK BEVERLY ENTERPRISES INC SAID SECONDQUARTER NET INCOME ROSE 24 ON AN INCREASE OF 14 IN REVENUE DESPITE THE IMPROVED RESULTS THE NURSING HOME OPERATOR'S STOCK FELL 10 IN TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY CLOSING AT 1175 DOWN 1375 MARGO VIGNOLA AN ANALYST AT SALOMON BROTHERS INC IN NEW YORK SAID DISAPPOINTMENT ABOUT THE COMPANY'S PROFIT MARGINS PROBABLY PRODUCED THE STOCK DROP THE COMPANY SAID ITS OPERATING MARGINS AS A PERCENT OF NET FELL TO 78 FROM 81 THE COMPANY POSTED NET OF 145 MILLION OR 18 CENTS A SHARE UP FROM 117 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE WAS 7144 MILLION UP FROM 624 MILLION IN EXPLAINING THE EARNINGS GAIN THE COMPANY CITED A 44 INCREASE IN REVENUE FROM ANCILLARY SERVICES PROVIDED TO ITS PRIVATE AND MEDICARE PATIENTS IN THE FIRST HALF NET NEARLY TRIPLED TO 249 MILLION OR 31 CENTS A SHARE FROM 87 MILLION OR 11 CENTS A SHARE A YEAR EARLIER THE 1992 RESULTS INCLUDED A CHARGE OF 45 MILLION OR FIVE CENTS A SHARE FOR EARLY RETIREMENT OF DEBT AND A CHARGE OF 55 MILLION OR SEVEN CENTS A SHARE FROM AN ACCOUNTING CHANGE REVENUE ROSE 14 TO 141 BILLION FROM 123 BILLION THE COMPANY ALSO SAID IT PLANS TO REDEEM 100 MILLION OF PREFERRED STOCK BUT THAT THE REDEMPTION WON'T AFFECT NET BUT WILL REDUCE EARNINGS AVAILABLE TO COMMON STOCKHOLDERS IN CALCULATING PERSHARE EARNINGS BEVERLY SAID IT ALSO WILL REDEEM 46 MILLION OF 9 CONVERTIBLE SUBORDINATED DEBENTURES DUE AUG 15 2000 BEGINNING AUG 19 AT 1063 OF THE PRINCIPAL AMOUNT PLUS ACCRUED AND UNPAID INTEREST 9307190104 930719 THE OUTLOOK WILL JOBS SUMMIT HELP CLINTON AGENDA BY ALAN MURRAY WASHINGTON BY URGING THE PRESIDENT TO CALL FOR AN INTERNATIONAL JOBS SUMMIT PRESIDENTIAL COUNSELOR DAVID GERGEN MAY HAVE DEMONSTRATED THAT HE IS MORE A TACTICIAN THAN A STRATEGIST THE JOBS CONFERENCE WAS SUGGESTED TO MR GERGEN BY ROBERT HORMATS A FORMER SUMMIT SHERPA NOW WITH GOLDMAN SACHS AS A TACTIC IT SERVED TWO USEFUL PURPOSES IT ENABLED THE PRESIDENT TO REPEAT HIS JOBS MANTRA AT EVERY OPPORTUNITY IN TOKYO AND REMIND AMERICANS THAT HIS INTERNATIONAL EFFORTS HELP THE ECONOMY AT HOME AND IT GAVE HIM A FALLBACK ACCOMPLISHMENT TO TOUT FROM TOKYO IN CASE NEGOTIATIONS ON TRADE ISSUES FAILED TO PRODUCE AGREEMENTS BUT WILL A GLOBAL JOBS CONFERENCE REALLY ADVANCE THE CLINTON ECONOMIC AGENDA THAT QUESTION GIVEN ONLY CURSORY THOUGHT BEFORE THE TOKYO ECONOMIC SUMMIT GOT MORE ATTENTION IN A FLURRY OF ADMINISTRATION MEETINGS LAST WEEK THE ANSWER IS FAR FROM CLEAR THE PROBLEM IS THAT MANY OF THE POLICIES ADVOCATED BY THE PRESIDENT TO PROMOTE HIGHSKILL HIGHWAGE JOBS HAVE ALREADY BEEN ADOPTED IN EUROPE YET MOST EUROPEAN NATIONS ARE BATTLING STUBBORN DOUBLEDIGIT UNEMPLOYMENT RATES THAT MAKE US JOBLESSNESS SEEM MILD MR CLINTON'S OPPONENTS WILL UNDOUBTEDLY SEIZE ON THAT TO ARGUE DURING THE JOBS SUMMIT SCHEDULED FOR THE FALL THAT THE PRESIDENT SHOULDN'T BE ALLOWED TO LEAD US DOWN EUROPE'S FAILED PATH THE PITFALLS FOR THE CLINTON ADMINISTRATION ARE EVIDENT IN AN INTERIM REPORT FROM THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ON THE JOBS TOPIC IN EXAMINING EUROPE'S STUBBORNLY HIGH RATES OF UNEMPLOYMENT THE REPORT NOTES THE EXPANSION OF UNEMPLOYMENT BENEFITS IS ONE POSSIBLE CAUSE THE CLINTON ADMINISTRATION HAS PUSHED TO EXTEND JOBLESS BENEFITS IT ALSO CITES THE ROLE PLAYED BY HIGH MINIMUM WAGES IN EUROPEAN JOBLESSNESS THE CLINTON ADMINISTRATION FAVORS A SUBSTANTIAL INCREASE IN THE US MINIMUM WAGE AND THE REPORT SAYS THERE IS EVIDENCE THAT PAYROLL TAXES TEND TO DISCOURAGE HIRING AND RAISE STRUCTURAL UNEMPLOYMENT OVER THE SHORT TO MEDIUM RUN PRESIDENT CLINTON'S WIFE IS URGING HIM TO ADOPT A NEW PAYROLL TAX OF ABOUT 9 TO FINANCE AN OVERHAUL OF THE HEALTHCARE SYSTEM PERHAPS MR GERGEN WHO IS SAID TO HAVE ARGUED THAT THE GOVERNMENT COULD BENEFIT FROM THE SAME SORT OF INTERNATIONAL BENCHMARKING PRACTICED BY PRIVATE CORPORATIONS HOPES THE JOBS SUMMIT WILL HELP DISCOURAGE HIS MORELIBERAL ADMINISTRATION COLLEAGUES FROM SOME OF THESE POLICIES MORE LIKELY THE ISSUE WASN'T GIVEN A LOT OF THOUGHT BUT IT IS CLEAR THE JOBS SUMMIT ORIGINALLY DEVISED TO HELP SOLVE A PUBLICRELATIONS PROBLEM COULD ITSELF BECOME ONE STILL COMPARING LABOR PROBLEMS ON THE TWO SIDES OF THE ATLANTIC CAN BE USEFUL BOTH EUROPE AND THE US SUFFER FROM SIGNIFICANT WORKFORCE PROBLEMS DUE LARGELY TO THE FACT THAT IN TODAY'S HIGHTECH WORLD UNSKILLED WORKERS COMPETE WITH GROWING ARMIES OF WILLING AND CHEAP LABOR IN ASIA EASTERN EUROPE AND ELSEWHERE THE RESULT IN EUROPE WHERE WAGES HAVE HELD FIRM HAS BEEN A STEADY SWELLING OF THE RANKS OF THE LONGTERM UNEMPLOYED IN THE US WHERE LONGTERM UNEMPLOYMENT HAS BEEN LESS OF A PROBLEM THERE HAS BEEN A DECLINE OF ABOUT 20 IN WAGES FOR LOWSKILLED YOUNG MEN THE US HAS ALLOWED THE LOW END OF THE JOB MARKET TO CLEAR SAYS ALICIA MUNNELL THE TREASURY DEPARTMENT'S ASSISTANT SECRETARY FOR ECONOMIC AFFAIRS THE EUROPEAN NATIONS HAVE PROGRAMS THAT TEND TO KEEP WAGES HIGH BUT OFTEN PRECLUDE EMPLOYMENT FOR LOWWAGE WORKERS BY COMPARING NOTES US OFFICIALS ARGUE BOTH SIDES WILL HAVE A CHANCE TO MAKE IMPROVEMENTS US OFFICIALS ALSO HOPE TO DEFLECT ATTENTION FROM THOSE LIKE BILLIONAIRE ROSS PEROT WHO SUGGEST THE SOLUTION IS TO CLOSE MARKETS TO FOREIGN COMPETITION NO ONE HAS A SOLUTION AND THERE PROBABLY ISN'T AN EASY ONE SAYS LABOR SECRETARY ROBERT REICH WHO WITH ECONOMIC ADVISER LAURA TYSON WILL TAKE THE LEAD IN ORGANIZING THE CONFERENCE BUT THERE IS REASON TO THINK WE KNOW WHAT DOESN'T WORK THE INFLEXIBILITY OF EUROPE'S LABOR MARKETS DOESN'T WORK THE RELATIVE FAILURE OF AMERICA TO INVEST IN OUR WORK FORCE DOESN'T WORK AND PROTECTIONISM DOESN'T WORK AT THE SAME TIME CLINTON AIDES ARGUE THAT DESPITE HIGHUNEMPLOYMENT RATES THERE ARE SOME THINGS EUROPE DOES RIGHT THE OTHER G7 COUNTRIES DO SOME IMPORTANT THINGS THAT WE CAN LEARN FROM SAYS TREASURY UNDERSECRETARY LAWRENCE SUMMERS CITING ACTIVE TRAINING EFFORTS JOB MATCHING EFFORTS PROGRAMS TO MOVE YOUNG PEOPLE FROM SCHOOL TO WORK THE KEY HE SAYS IS TO COPY THE GOOD POLICIES WITHOUT IMITATING THE BAD THIS IS THE INDUSTRIALIZED WORLD'S BIGGEST ECONOMIC PROBLEM IT MAKES SENSE FOR THE LEADING NATIONS TO POOL IDEAS AND INITIATIVES THE END RESULT INTENDED OR NOT WILL PROBABLY BE A CONFERENCE THAT NUDGES THE CLINTON ADMINISTRATION TOWARD MORE MODERATE ECONOMIC POLICIES IN THE PROCESS IT MAY ALSO HELP BOTH THE US AND EUROPE FIND POLICIES THAT ALLOW FOR MORE JOB GROWTH AND MORE WAGE GROWTH AT THE SAME TIME 9307190103 930719 REVIEW & OUTLOOK EDITORIAL WHAT'S THE RUSH SO THE GANG THAT PULLED THE GREAT TRAVEL OFFICE CAPER IS NOW HELLBENT ON FIRING THE HEAD OF THE FBI THE NEWS REPORTS SAY THAT WILLIAM SESSIONS HAS ALREADY OFFERED TO RESIGN PENDING APPROVAL OF A SUCCESSOR WE WISH SOMEONE WOULD EXPLAIN TO US THE HURRY THE FBI DIRECTOR WHATEVER THE INCUMBENT'S SHORTCOMINGS WAS GIVEN A 10YEAR TERM TO PROVIDE SOME MEASURE OF POLITICAL INDEPENDENCE TO BE SURE THE PRESIDENT HAS A RIGHT TO FIRE THE DIRECTOR AS PRESIDENT TRUMAN FIRED GENERAL MACARTHUR BUT THAT IS NOT TO SAY EVERY INCOMING PRESIDENT IS JUSTIFIED IN FIRING AN INCUMBENT AND APPOINTING HIS OWN DIRECTOR WE DO NOT WANT LAW ENFORCEMENT PUT AT THE DISPOSAL OF THIS OR THAT POLITICAL FACTION IF MR SESSIONS IS FIRED IT WILL OF COURSE BE FOR OSTENSIBLE CAUSE AS THE TRAVEL OFFICE FIRINGS WERE OVER EXPENSE RECORDS HIS SIN WAS TO TAKE HIS WIFE ON HIS GOVERNMENT AIRPLANE AND TO CLAIM FOR TAX PURPOSES THAT HIS LIMOUSINE WAS A LAW ENFORCEMENT VEHICLE BECAUSE HE CARRIED FIREARMS IN THE TRUNK EVEN IF HE DID NOT USE THE PLANE FOR HAIRCUTS THIS IS APPARENTLY DEEMED REASON FOR SUMMARY DISMISSAL IN THE TRAVEL OFFICE CASE BY CONTRAST ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY III EARNED A MEANINGLESS LETTER OF REPRIMAND FOR MISUSING THE FBI'S INVESTIGATIVE POWERS WE HOPE MR SESSIONS POINTED THIS OUT TO WHITE HOUSE COUNSEL BERNARD NUSSBAUM WHO SAT IN WITH ATTORNEY GENERAL JANET RENO AND DEPUTY ATTORNEY GENERAL PHILIP HEYMANN IN THE SHOOTOUT WITH MR SESSIONS ON SATURDAY ALSO PRESENT WAS ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL THE MAN WHO BROKERED A MEETING THAT RESULTED IN THE JUSTICE DEPARTMENT REVERSING ITS POSITION IN THE CORRUPTION TRIAL OF A MEMBER OF CONGRESS MR HUBBELL AND MR KENNEDY ARE ALUMNI OF LITTLE ROCK'S ROSE LAW FIRM AS ARE MRS CLINTON AND DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER BOTH OF WHOM WERE ALSO INVOLVED IN THE TRAVELOFFICE AFFAIR THE LEAKS ON SATURDAY'S MEETING ARE THAT WEBB HUBBELL ET AL TOLD MR SESSIONS TO RESIGN OR BE FIRED PROBABLY TODAY ON THE WAY OUT HE STUMBLED ON A CURB AND BROKE HIS ELBOW PRESUMABLY MR SESSIONS IS LEAVING SOONER OR LATER THE CONVENTIONAL WISDOM WITHIN THE WASHINGTON BELTWAY HAS CERTAINLY RUN AGAINST HIM FOR WHATEVER THAT'S WORTH HE HAS APPARENTLY ALIENATED IMPORTANT SUBORDINATES PERHAPS BECAUSE HE'S A POOR ADMINISTRATOR OR PERHAPS AS HE CLAIMS BECAUSE OF HIS EFFORTS TO PROMOTE BLACKS AND WOMEN THE OPPOSITION HAS A BIPARTISAN PATINA SINCE THE CHARGES AGAINST HIM WERE ORIGINALLY LEVELED BY BUSH ATTORNEY GENERAL WILLIAM BARR ON HIS LAST DAY IN OFFICE THE ORIGINAL BUSH ADMINISTRATION INVESTIGATION IT SHOULD BE CAREFULLY NOTED WAS ANNOUNCED IMMEDIATELY AFTER IT BECAME PUBLIC THAT THE FBI HAD LAUNCHED AN INVESTIGATION INTO THE CONTROVERSIAL PROSECUTION OF THE HEAD OF THE ATLANTA BRANCH OF THE BANCA NAZIONALE DEL LAVORO OVER ILLICIT LOANS TO IRAQ MR BARR'S OWN INVESTIGATOR A PROMINENT FORMER JUDGE EXONERATED THE JUSTICE DEPARTMENT HANDLING OF THE BNL CASE BUT WE'RE NOT SURE THE FINAL WORD HAS BEEN HEARD PRESIDENT CLINTON MET FRIDAY WITH FEDERAL JUDGE LOUIS J FREEH OF NEW YORK REPORTEDLY THE LEADING CONTENDER AS MR SESSIONS' SUCCESSOR JUDGE FREEH IS FINE BY US BUT HIS MEETING WITH THE PRESIDENT ONLY DEEPENS THE MYSTERY OVER THE HURRY IF THE CHOICE OF A SUCCESSOR REALLY IS IMMINENT WHY NOT GET HIM NOMINATED IF MR SESSIONS RESIGNS WE WORRY THAT JUDGE FREEH GIVEN THE RECORD OF THE CLINTON APPOINTMENTS PROCESS MAY TRIP OVER A KIMBA PROBLEM OR SOMESUCH THE AGENCY WOULD BE LEFT ADRIFT AND THE APPOINTMENT UP FOR GRABS OUR WASHINGTON BUREAU REPORTED IN MARCH THAT THE ADMINISTRATION WAS INTENT ON GETTING RID OF MR SESSIONS IN ORDER TO REPLACE HIM WITH RICHARD STEARNS A JUDGE ON THE MASSACHUSETTS SUPERIOR COURT JUDGE STEARNS AND PRESIDENT CLINTON WERE WAR PROTESTERS TOGETHER AS RHODES SCHOLARS AT OXFORD JUDGE STEARNS WAS ALSO A DEPUTY CAMPAIGN MANAGER IN GEORGE MCGOVERN'S 1972 PRESIDENTIAL RACE AS WELL AS NATIONAL DIRECTOR OF DELEGATES IN SEN EDWARD KENNEDY'S 1980 PRESIDENTIAL NOMINATION BID THIS KIND OF APPOINTMENT WOULD BE ANOTHER MATTER INDEED WE ARE FAR ENOUGH ALONG TOWARD MAKING THE FBI JOB A POLITICAL FOOTBALL MR SESSIONS IS LEAVING UNDER ATTACK FROM VARIOUS QUARTERS HIS PREDECESSOR WILLIAM WEBSTER LEFT TO BECOME DIRECTOR OF CENTRAL INTELLIGENCE ONLY TO RESIGN THAT JOB RATHER ABRUPTLY STRANGE THINGS ARE GOING ON IN LAW ENFORCEMENT AS THE BNL AND BCCI CASES SHOW THE MORES ON DISPLAY FROM THE ROSE ALUMNI ARE FAR FROM CONFIDENCEBUILDING IT SEEMS TO US MR SESSIONS WOULD DO THE NATION AND HIS AGENCY A FAVOR TO STAND BY HIS POSITION LEAVING WHEN A SUCCESSOR IS READY OR LETTING THE PRESIDENT TAKE FULL RESPONSIBILITY FOR A FIRING WHY DON'T SERIOUS PEOPLE UNDERSTAND THIS IMMEDIATELY WHAT KIND OF A POLITICAL CULTURE DO WE HAVE WHERE THE BIG ISSUE IS NOT WHETHER THE FBI DIRECTOR FAIRLY ENFORCES THE LAW BUT WHETHER HE TAKES HIS WIFE ON AN AIRPLANE 9307190102 930719 WHO'S NEWS CLAYTON HOMES INC CLAYTON HOMES INC KNOXVILLE TENN JOSEPH H STEGMAYER 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF MANUFACTURED HOMES MR STEGMAYER FORMERLY THE CHIEF FINANCIAL OFFICER AND TREASURER OF WORTHINGTON INDUSTRIES IN COLUMBUS OHIO HAS SERVED ON THE BOARD OF CLAYTON HOMES SINCE 1986 JAMES L CLAYTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD HELD THE TITLE OF PRESIDENT MR STEGMAYER STARTS IN AUGUST AND WILL BE RESPONSIBLE FOR MANUFACTURING DISTRIBUTION FINANCIAL AND SUPPORT SERVICES 9307190101 930719 ACCESS CARDS MAY BE GIVEN TO FOODSTAMP RECIPIENTS WASHINGTON FOODSTAMP RECIPIENTS MAY SOON BE ABLE TO PURCHASE GROCERIES WITH ELECTRONIC ACCESS CARDS RATHER THAN PAPER COUPONS AT A NEWS CONFERENCE TODAY IN ALBUQUERQUE NM THE AGRICULTURE DEPARTMENT IS SCHEDULED TO ANNOUNCE THE RESULTS OF A STUDY SHOWING THAT THE ELECTRONIC TRANSFER OF BENEFITS SAVES MONEY FOR THE GOVERNMENT RETAILERS BANKS AND RECIPIENTS IN ADDITION IT LIMITS FRAUD AND REDUCES THE STIGMA THAT IS ASSOCIATED WITH THE USE OF FOOD STAMPS FOR MANY PEOPLE SAID ELLEN HAAS ASSISTANT AGRICULTURE SECRETARY FOR FOOD AND CONSUMER SERVICES IT WILL BE UP TO INDIVIDUAL STATES TO DECIDE WHETHER TO SWITCH TO THE ELECTRONIC TRANSFER PROGRAM BUT MS HAAS SAID STATES HAVE BEEN RESPONSIVE TO THE IDEA THE AGRICULTURE DEPARTMENT IS SETTING A GOAL OF INITIATING THE PROGRAM IN ALL STATES BY 1996 WITH THE FIRST PROGRAMS EXPECTED OVER THE NEXT YEAR UNDER THE NEW SYSTEM RECIPIENTS USE ACCESS CARDS TO PAY FOR FOOD ITEMS AT TERMINALS AT GROCERY STORE CHECKOUT LINES THESE TERMINALS ARE CONNECTED TO A COMPUTER CENTER THAT RECORDS RECIPIENTS' USE OF BENEFITS AND INITIATES ELECTRONIC FUND TRANSFERS TO REIMBURSE RETAILERS MORE THAN ONE IN 10 AMERICANS OR 274 MILLION PEOPLE GET FOOD STAMPS 9307190100 930719 FOREIGN EXCHANGE BUNDESBANK OFFERS SUPPORT TO DENMARK AS DEALERS SET SIGHTS ON LATEST TARGET BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON TO GET AN IDEA OF THE ARBITRARY NATURE OF FOREIGNEXCHANGE SPECULATION TAKE A CLOSE LOOK AT DENMARK ITS ECONOMY GREW 12 IN 1992 AND IS EXPECTED TO GROW AN ADDITIONAL 06 THIS YEAR WHILE MOST OF EUROPE LANGUISHES THE DANES CAN ALSO BOAST ABOUT CURRENT ACCOUNT AND BUDGET SURPLUSES ANNUAL INFLATION IS JUST 09 THE LOWEST SINCE WORLD WAR II BUT THAT'S NOT GOOD ENOUGH FOR THE PIRANHAS IN THE CURRENCY MARKET SENSING BLOOD BENEATH DENMARK'S 12 UNEMPLOYMENT RATE THEY ARE CHOMPING AWAY FRANTICALLY AT THE KRONE DESPERATE TO GENERATE VOLATILITY AND EARN TRADING PROFITS FOREIGNEXCHANGE DEALERS REASON THAT BECAUSE THE DANISH ECONOMY IS SLOWING ITS GOVERNMENT MUST BE PANICKING ABOUT KEEPING INTEREST RATES HIGH IN LINE WITH THE INFLATIONFEARING BUNDESBANK THE KRONE IS SMALL FRY IN THE TURBULENT WATERS OF THE EUROPEAN MONETARY SYSTEM BUT THAT'S PARTLY THE POINT AFTER STRIKING AT THE WHALESIZED FRENCH FRANC FOR MOST OF LAST WEEK FOREIGNEXCHANGE DEALERS DECIDED TO GO FOR EASIER PREY THEY'RE TRYING TO PICK OFF THE SMALLEST AND THE WEAKEST SAYS IVAN HANSEN VICE PRESIDENT OF TREASURY AT JYSKE BANK A COMMERCIAL BANK IN COPENHAGEN BUT THEY'RE NOT GOING TO SUCCEED SO FAR THE DANES HAVE BEEN FIGHTING THE SPECULATIVE SHORTSELLING OF THEIR CURRENCY WITH A CALM DETERMINATION THAT SEEMED TO BE LACKING IN BRITAIN ITALY SPAIN NORWAY SWEDEN AND IRELAND WHEN THOSE COUNTRIES SCRAMBLED TO DEFEND THEIR CURRENCIES PERHAPS THE DANISH COMPOSURE IN PART COMES FROM HAVING THE FIRM BACKING OF THE BUNDESBANK AND AS IF BY EXTENSION THE REST OF EUROPE'S CENTRAL BANKS MOST ERM MEMBERS INTERVENED ON THE CURRENCY MARKETS FRIDAY IN SUPPORT OF THE KRONE THE DANISH CENTRAL BANK ALSO RAISED ITS DISCOUNT RATE TWO PERCENTAGE POINTS TO 925 WHILE ITS GOVERNOR CATEORICALLY RULED OUT A DEVALUATION IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 17160 MARKS DOWN FROM 17205 LATE THURSDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 10755 YEN DOWN FROM 10805 ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10785 YEN AND AT 17160 MARKS WHILE ANOTHER REALIGNMENT OF THE ERM ISN'T INCONCEIVABLE MOST SERIOUSMINDED ANALYSTS ASSERT THAT POLITICAL CONSIDERATIONS NAMELY GERMANY AND FRANCE'S COMMITMENT TO GREATER EC UNITY WILL PREVAIL OVER THE MARKETS THERE ALSO ARE ECONOMIC ARGUMENTS AGAINST FURTHER DEVALUATIONS IN THE ERM GERMAN OFFICIALS HAVE EXPRESSED CONCERN THAT THE COUNTRY'S EXPORT COMPETITIVENESS HAS BEEN ERODED BY DEVALUATION IN MOST OF ITS MAJOR TRADING PARTNERS THEY ARE UNWILLING TO SEE THE EXPORT MARKET SHRINK FURTHER BY HAVING THE MARK RISE AGAINST THE FRENCH FRANC THE CURRENCY OF GERMANY'S BIGGEST TRADING PARTNER ALSO BY MANY ESTIMATES GERMAN GROSS DOMESTIC PRODUCT WILL CONTRACT 2 AND PERHAPS 1 MORE NEXT YEAR THAT MEANS THE CENTRAL BANK WANTS TO LOWER INTEREST RATES FOR THE SAKE OF ITS OWN COUNTRY NOT JUST TO KEEP THE ERM INTACT WHETHER THE OFFICIALS IN FRANKFURT SIGNAL THEIR MORE EXPANSIVE TENDENCIES BY LOWERING THE RATE THEY GRANT FOR SECURITIES REPURCHASE AGREEMENTS OR BY MAKING CUTS IN OFFICIAL LENDING RATES AT THEIR NEXT COUNCIL MEETING JULY 29 ISN'T REALLY A CRITICAL ISSUE BY MOST ACCOUNTS COUNTRIES LIKE FRANCE AND DENMARK CAN HOLD OUT A WHILE LONGER THE MOST LIKELY SCENARIO IS THAT THE CENTRAL BANKS WILL CARRY ON BUYING THE FRANC WHENEVER THERE IS PRESSURE SAYS PHILIPPE RAKOTOVAO HEAD OF BOND TRADING AT BANQUE NATIONALE DE PARIS THE FRENCH GOVERNMENT HAS MADE IT VERY CLEAR THAT THEY SUPPORT THE ERM AND A STRONG FRANC REGARDLESS OF WHAT MIGHT HAPPEN LONG TERM THE CURRENT TURMOIL IS GOOD FOR BUSINESS AT SOME BANKS ALTHOUGH NOT THOSE IN DENMARK MADS JACOBSEN HEAD OF TREASURY AND FOREIGNEXCHANGE OPERATIONS AT DEN DANSKE BANK IN COPENHAGEN SAYS THERE HAS BEEN LITTLE TO NO SELLING OF KRONER BY DOMESTIC CLIENTS NOBODY BELIEVES IN A DEVALUATION AND EVEN LESS IN THE BREAKUP OF THE ERM MR JACOBSEN SAYS IT WOULD BE ABSOLUTELY RIDICULOUS IF THE THING COLLAPSED IT'S THE ESSENTIAL MECHANISM OF EC COOPERATION 9307190098 930719 WHO'S NEWS SALEM CORP SALEM CORP PITTSBURGH PHILLIP H SMITH 66 YEARS OLD ALEXANDER STUART 72 AND LEO L WALLBERG JR 60 WERE ELECTED DIRECTORS OF THIS DESIGNER AND BUILDER OF FURNACES FOR METALS INDUSTRIES AND OTHER EQUIPMENT FOR METALS AND COAL INDUSTRIES MESSRS SMITH A BANK CONSULTANT STUART A RETIRED EXECUTIVE OF A CANADIAN METALS FIRM AND WALLBERG A REALESTATE AND FINANCIAL CONSULTANT SUCCEED STEVEN POSNER 50 SALEM VICE PRESIDENT WILLIE ROBINSON 58 A CONSULTANT AND JACK COPPERSMITH MR COPPERSMITH'S AGE AND OCCUPATION COULDN'T BE DETERMINED NEITHER HE NOR SALEM OFFICIALS COULD BE REACHED TO ELABORATE THE BOARD SHAKEUP WAS PART OF A SETTLEMENT OF A SHAREHOLDER LAWSUIT THAT CHARGED THE COMPANY OVERPAID VICTOR POSNER CHAIRMAN AND CHIEF EXECUTIVE 9307190097 930719 MIRAGE CANCELS UNIT'S DEBT SWAP CONSIDERS SPINOFF BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL MIRAGE RESORTS INC SCRAPPED AN EXCHANGE OFFER FOR THE 1275 UNSECURED NOTES OF ITS SUBSIDIARY GNLV FINANCE CORP RAISING THE POSSIBILITY THAT THE LAS VEGAS CASINO COMPANY MAY SPIN OFF ITS DOWNTOWN GOLDEN NUGGET CASINO THE PARENT COMPANY HAD OFFERED TO SWAP AS MUCH AS 1129 MILLION PRINCIPAL AMOUNT OF NEW 925 SENIOR SUBORDINATED NOTES DUE JULY 1 2001 FOR AN EQUAL AMOUNT OF OUTSTANDING 1275 UNSECURED NOTES DUE 1999 OF GNLV FINANCE A FINANCING SUBSIDIARY AFFILIATED WITH THE GOLDEN NUGGET THE EXCHANGE OFFER WHICH WAS EXTENDED TWICE EXPIRED THURSDAY NIGHT AFTER ONLY A SMALL PORTION OF THE REQUIRED 90 PRINCIPAL AMOUNT OF THE 1275 NOTES WERE TENDERED MIRAGE WHICH IS BUILDING A NEW PIRATETHEMED CASINO ALONG THE LAS VEGAS STRIP AND HAS PLANS FOR ANOTHER STRIP PROJECT AND EXPANSION OUTSIDE NEVADA HAD SOUGHT THE EXCHANGE TO REDUCE INTEREST EXPENSE AND MAKE IT EASIER TO REFINANCE GNLV FINANCE'S FIRST MORTGAGE NOTES MIRAGE CHAIRMAN STEPHEN WYNN HAD THREATENED TO SPIN OFF OR SELL THE COMPANY'S OLDEST CASINO IF BONDHOLDERS REFUSED TO TENDER EXECUTIVES WITH NOMURA SECURITIES INTERNATIONAL AND THE FRANKLIN GROUP OF MUTUAL FUNDS MAJOR HOLDERS OF THE GNLV NOTES DIDN'T RETURN CALLS SEEKING COMMENT BUT PEOPLE FAMILIAR WITH THE TALKS SAID BONDHOLDERS HAD BALKED AT THE DEAL IN PART BECAUSE SOME FEEL THAT MIRAGE WOULD NOT FOLLOW THROUGH ON THE THREAT SOME HOLDERS FEEL THE COMPANY WON'T RISK ITS REPUTATION ON WALL STREET BY ANGERING BONDHOLDERS WITH A SPINOFF AS THE COMPANY WILL NEED TO RAISE HUNDREDS OF MILLIONS OF DOLLARS IN NEW CAPITAL TO FINANCE ITS AMBITIOUS PLANS WE WILL CONSIDER ALL OUR ALTERNATIVES AND DO WHAT'S BEST FOR MIRAGE SHAREHOLDERS DANIEL LEE MIRAGE'S CHIEF FINANCIAL OFFICER SAID A SPINOFF COULD BOOST MIRAGE'S STOCK JUST AS LITTON INDUSTRIES INC'S STOCK HAS RISEN SHARPLY SINCE ITS ANNOUNCEMENT LAST MONTH OF A SPINOFF OF ITS COMMERCIAL BUSINESSES FROM ITS CORE DEFENSE OPERATIONS AND WHILE COMPANIES HAVE HISTORICALLY AVOIDED ANGERING BONDHOLDERS TO SHAREHOLDERS' BENEFIT SUCH TRANSACTIONS AREN'T UNHEARD OF MARRIOTT CORP HAS INFURIATED ITS BONDHOLDERS WITH A PLAN TO SPIN OFF ITS REAL ESTATE AND SOME OTHER ASSETS FROM ITS LUCRATIVE HOTEL MANAGEMENT BUSINESS STEVEN PATRICOLA A HIGHYIELD BOND ANALYST WITH CITICORP SECURITIES MARKETS INC POINTS OUT THAT THE CASINO IS BECOMING LESS STRATEGICALLY IMPORTANT TO MIRAGE BY YEAR END AFTER THE OPENING OF THE TREASURE ISLAND CASINO THE GOLDEN NUGGET WOULD ACCOUNT FOR ABOUT 10 OF THE COMPANY'S EARNINGS AND ABOUT 30 OF ITS 825 MILLION OF TOTAL DEBT COMPANY OFFICIALS SAY MICHAEL MUELLER A STOCK ANALYST WITH MONTGOMERY SECURITIES SAYS BONDHOLDERS SHOULDN'T CONSIDER THE NOTION OF A TAXFREE SPINOFF AN IDLE THREAT WHILE MIRAGE WILL HAVE TO RETURN TO THE MARKETS TO RAISE CAPITAL HE SAYS THE FAILED EXCHANGE COULD BE PITCHED TO POTENTIAL INVESTORS AS A GOODFAITH EFFORT THAT DIDN'T WORK OUT MIRAGE'S STOCK ROSE 375 CENTS ON THE NEWS TO 44875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9307190096 930719 TECHNOLOGY INDUSTRY GROUP CLEARS CDMA AS STANDARD FOR CELLULAR SYSTEMS WASHINGTON THE TELECOMMUNICATIONS INDUSTRY ASSOCIATION APPROVED A SECOND DIGITAL TECHNOLOGY AS A VOLUNTARY INDUSTRY STANDARD FOR CELLULAR TELEPHONE SYSTEMS THE NEW STANDARD IS BASED ON CODE DIVISION MULTIPLE ACCESS CDMA TECHNOLOGY DEVELOPED BY QUALCOMM INC IN SAN DIEGO THE TRADE GROUP SAID THE NEW STANDARD WAS GIVEN AN INTERIM DESIGNATION WHICH LETS IT UPDATE THE STANDARD MORE RAPIDLY INTERDIGITAL COMMUNICATIONS CORP WHICH HOLDS MANY OF THE PATENTS FOR THE RIVAL DIGITAL TECHNOLOGY KNOWN AS TIME DIVISION MULTIPLE ACCESS TDMA CAST A CLOUD OVER THE CDMA STANDARDSSETTING PROCESS BY FILING STILL PENDING LAWSUITS EARLIER THIS YEAR ALLEGING PATENT INFRINGEMENT INTERDIGITAL IN KING OF PRUSSIA PA CLAIMED INFRINGEMENTS ON THE HANDOFF OF A CELLULAR PHONE CALL FROM ONE CELL TO ANOTHER USING THE CDMA TECHNOLOGY IN APPROVING THE NEW STANDARD THE ASSOCIATION CAUTIONED MANUFACTURERS AND USERS THAT INTERDIGITAL HAS FILED PATENT INFRINGEMENT CLAIMS AND HAS ASSERTED IT WON'T LICENSE THE TECHNOLOGY CDMA BREAKS MESSAGES INTO SMALL BITS LABELS EACH WITH A UNIQUE CODE AND REASSEMBLES THEM AT THE RIGHT DESTINATION AND IN THE RIGHT ORDER BASED ON THE CODES WITH TDMA MESSAGES ARE BROKEN INTO SMALL UNITS TRANSMITTED IN DIFFERENT TIME SLOTS IN SHORT BURSTS AND REASSEMBLED AT THEIR DESTINATION BOTH TECHNOLOGIES USE SCARCE AIRWAVES MORE EFFICIENTLY THAN THE CURRENT ANALOG SYSTEM AND CUSTOMERS USING EITHER TECHNOLOGY WILL BE SWITCHED TO ANALOG TRANSMISSION WHEN THEY CAN'T GET A DIGITAL CHANNEL 9307190095 930719 LAW PACKWOOD LEGAL FUND RAISES 220000 WITH THE HELP OF PACS AND LOBBYISTS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATURE OF THE CHARGES FACING SEN BOB PACKWOOD HAVEN'T STOPPED CORPORATIONS BUSINESSMEN AND LOBBYISTS FROM STANDING BY THEIR MAN WHEN IT COMES TO HIS LEGAL DEFENSE AGAINST THE SEXUAL HARASSMENT ALLEGATIONS THE OREGON REPUBLICAN THE TARGET OF A SENATE ETHICS COMMITTEE INVESTIGATION HAS RAISED MORE THAN 220000 THIS YEAR FOR HIS LEGAL DEFENSE ACCORDING TO PUBLIC FILINGS WITH THE SENATE HIS SUPPORTERS INCLUDE POLITICAL ACTION COMMITTEES FOR SUCH COMPANIES AS TURNER BROADCASTING SYSTEM INC WHICH GAVE 2000 AND GEORGIAPACIFIC CORP A 2500 CONTRIBUTOR UNION PACIFIC CORP CHIEF EXECUTIVE OFFICER DREW LEWIS AND ATLANTIC RICHFIELD CO CEO LODWRICK M COOK MADE 1000 PERSONAL CONTRIBUTIONS TO THE PACKWOOD LEGAL EXPENSE TRUST FUND WHILE SOUTHWEST AIRLINES CHIEF HERBERT D KELLEHER KICKED IN 4000 CINCINNATI FINANCIER CARL LINDNER GAVE 500 HE HAS BEEN AN EFFECTIVE SENATOR FOR A LONG TIME AND HE IS CLEARLY ENTITLED TO A DEFENSE IN THIS PROCEEDING SAID BERT CARP VICE PRESIDENT FOR GOVERNMENTAL AFFAIRS FOR TURNER LEGAL DEFENSE FUNDS WERE AUTHORIZED BY THE SENATE STARTING IN THE WAKE OF THE ABSCAM CORRUPTION SCANDALS OF THE 1970S TO HELP MEMBERS LESSEN THE BURDEN OF DEFENDING THEMSELVES IN MATTERS CONNECTED TO THEIR DUTIES BUT CRITICS SAY SUCH FUNDS ALSO HAVE BECOME ANOTHER AVENUE OF INFLUENCE IN WASHINGTON THIS IS THE LATEST WRINKLE SAID CHUCK LEWIS EXECUTIVE DIRECTOR OF THE CENTER FOR PUBLIC INTEGRITY A WASHINGTON NONPROFIT GROUP IT IS ABSOLUTELY ANOTHER WAY TO INFLUENCE IN MR PACKWOOD'S CASE THE MONEY IS ONLY A DOWN PAYMENT ON HIS LEGAL BILLS WHICH REPORTEDLY ALREADY EXCEED 500000 IN THE LAST SIX MONTHS FOR EXAMPLE HE REPORTED PAYING 159000 TO THE WASHINGTON LAW FIRM ARNOLD & PORTER WHICH IS REPRESENTING HIM IN THE INQUIRY MR PACKWOOD'S OFFICE DIDN'T RETURN PHONE CALLS FRIDAY THE ETHICS COMMITTEE IS INVESTIGATING ACCUSATIONS THAT MR PACKWOOD MADE UNWANTED SEXUAL ADVANCES TOWARD MORE THAN 20 WOMEN WHO WORKED FOR OR WITH HIM DURING HIS 24YEAR SENATE CAREER THE COMMITTEE PROBE COULD LEAD TO DISCIPLINARY ACTION AGAINST THE FORMER SENATE FINANCE COMMITTEE CHAIRMAN THE BIGGEST CONTRIBUTORS TO MR PACKWOOD'S DEFENSE FUND INCLUDED THE AIR LINE PILOTS ASSOCIATION POLITICAL ACTION COMMITTEE WHICH GAVE 10000 THE ANNUAL LIMIT FOR GIVING A GAGGLE OF WASHINGTON LOBBYISTS ALSO PITCHED IN STUART EIZENSTAT THE FORMER CARTER ADMINISTRATION OFFICIAL AND PRESIDENT CLINTON'S NOMINEE FOR AMBASSADOR TO THE EUROPEAN COMMUNITY GAVE 100 BECAUSE HE SAID OF THE SENATOR'S SUPPORT OF ISRAEL JACK VALENTI THE PRESIDENT OF THE MOTION PICTURE ASSOCIATION OF AMERICA WROTE A 500 CHECK HE HAS BEEN MY LONGTIME FRIEND I DO NOT CUT AND RUN FROM FRIENDS SAID MR VALENTI I KNOW NOTHING ABOUT THE CONTROVERSY IN WHICH HE IS NOW INVOLVED I HAVE NEVER SPOKEN TO HIM ABOUT IT NOR DO I INTEND TO 9307190094 930719 SURVIVAL TACTICS ITS ECONOMY DYING CUBA SEEKS SALVATION IN DOLLARS AND EXILES CASTRO STILL HAS A FIRM GRIP BUT HUNGER IS SPREADING AND FAMINE FEAR IS REAL FLIMSY RAFTS AND DEATH AT SEA BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL HAVANA CARLOS LAGE THE YOUNG CZAR OF CUBA'S ECONOMY MET WITH FOREIGN BUSINESSMEN HERE ON FRIDAY AND MADE A STUNNING ANNOUNCEMENT SOON IT WILL BE LEGAL FOR CUBANS TO POSSESS DOLLARS THAT THE FIDEL CASTRO GOVERNMENT WOULD ALLOW CUBANS TO USE THE CURRENCY OF THE NATION IT CONSIDERS ITS ARCHENEMY CURRENCY THAT HAS BEEN ILLEGAL TO POSSESS FOR DECADES SAYS VOLUMES ABOUT THE STATE OF THE ISLAND'S ECONOMY TODAY IT CAN BE DESCRIBED IN ONE WORD WRECKED FOUR YEARS AFTER THE FALL OF THE BERLIN WALL MR CASTRO'S REGIME SHOWS NO SIGN OF TOTTERING EVEN AS THE COUNTRY AROUND IT DISINTEGRATES YET AS CUBA'S ECONOMY GRINDS TO A NEAR HALT AND FOOD BECOMES SCARCE THE ISLAND ORPHANED BY THE DEMISE OF THE SOVIET UNION AND ALMOST FORGOTTEN BY WASHINGTON NOW THAT IT IS NO LONGER A PLAYER IN THE GLOBAL GAME OF COLD WAR CHESS IS EVERY DAY IN GREATER DANGER OF EXPLODING OR MORE LIKELY IMPLODING THERE IS A REAL DANGER OF A NATIONAL TRAGEDY ON THE HORIZON WARNS ELIZARDO SANCHEZ CUBA'S BESTKNOWN HUMANRIGHTS ACTIVIST ALL THE FORCES ARE PUSHING FOR AN APOCALYPSE IN A RECENT SPEECH IN HAVANA MR CASTRO HIMSELF SAID WE HAVE TO BE READY FOR GREATER DIFFICULTIES THAN WE CAN NOW IMAGINE NO ONE KNOWS WHAT WILL HAPPEN IN CUBA BUT MOST OF THE POSSIBLE OUTCOMES ARE GRIM THE WORST CASE MR SANCHEZ'S APOCALYPSE IS A CIVIL WAR SUCH A SCENARIO WOULD CREATE ENORMOUS PROBLEMS FOR THE US AT MINIMUM IT WOULD CERTAINLY PRODUCE A WAVE OF REFUGEES THAT WOULD EASILY DWARF HAITI'S THOUSANDS OF BOAT PEOPLE CLAMOR FROM THE US'S POLITICALLY POWERFUL WELLORGANIZED AND VOCAL CUBANAMERICANS COULD CONCEIVABLY LEAD TO A RELUCTANT US MILITARY INTERVENTION VISITORS REPORT AN INCREASINGLY VOLATILE TESTINESS ON THE PART OF CUBANS AND AN INCREASINGLY VIOLENT RESPONSE FROM THE GOVERNMENT EARLIER THIS MONTH IN THE SEASIDE TOWN OF COJIMAR CLOSE TO HAVANA FRONTIER GUARDS SHOT AND KILLED THREE CUBANS TRYING TO ESCAPE IN A BOAT PILOTED BY AN AMERICAN WHO WAS WOUNDED INDIGNANT TOWNSPEOPLE RIOTED OVERTURNING TWO POLICE CARS AND THROWING ROCKS AT POLICE HAVANA RESIDENTS SAY BUT THE VERY DIFFICULT CONDITIONS IN WHICH CUBANS LIVE SPENDING MOST OF THEIR TIME FORAGING FOR THAT DAY'S NECESSITIES WORK AGAINST POLITICAL CHANGE IF CUBA IMPLODES IF IT MAKES GOOD ITS RETREAT TO THE PREINDUSTRIAL AGE WITH HUNGER REACHING NEARFAMINE LEVELS BUT WITH MR CASTRO STILL IN CONTROL THE US WOULD BE HARDPRESSED TO CONTINUE ITS 31YEAROLD ECONOMIC EMBARGO PREVENTING US COMPANIES FROM DOING BUSINESS WITH CUBA IT WOULD BE A VERY TICKLISH FOREIGN POLICY DILEMMA SAYS GILLIAN GUNN DIRECTOR OF GEORGETOWN UNIVERSITY'S CUBA PROJECT WHATEVER THE OUTCOME THE CLOCK IS RUNNING ON A POTENTIALLY DISASTROUS SITUATION IN CUBA NUMBERS TELL THE STORY LAST YEAR MR CASTRO SAID CUBA'S BUYING POWER HAD FALLEN TO 22 BILLION FROM 81 BILLION IN 1989 ONE HAVANA STUDY OF THE CUBAN ECONOMY SAID THE ISLAND'S GROSS DOMESTIC PRODUCT FELL 24 IN 1991 AND ANOTHER 15 IN 1992 IN MAY A TOP OFFICIAL ANNOUNCED THAT THE COUNTRY'S VITAL SUGAR CROP WHICH IN 1992 ACCOUNTED FOR ABOUT 64 OF HARDCURRENCY EXPORTS WILL FALL 40 TO 42 MILLION TONS A 30YEAR LOW COST TO CUBA ACCORDING TO MR CASTRO 500 MILLION IT'S NOT POSSIBLE TO CALCULATE TO WHAT POINT THE ECONOMIC SITUATION OF THE COUNTRY WILL FALL MR LAGE TOLD THE FOREIGN BUSINESSMEN ON FRIDAY TO KEEP AFLOAT CUBA IS AGGRESSIVELY PUSHING FOREIGN INVESTMENT ESPECIALLY IN TOURISM AND BIOTECHNOLOGY BUT SO FAR THAT HASN'T BEEN ENOUGH DESPERATE FOR CASH CUBA IS RELUCTANTLY TURNING IN LARGE PART TO CUBAN EXILES TO BAIL IT OUT ENTER THE NEW DOLLAR POLICY THAT MR LAGE ANNOUNCED IT WILL ALLOW PEOPLE TO BUY GOODS AT DOLLAR STORES UNTIL NOW RESERVED ALMOST EXCLUSIVELY FOR FOREIGNERS WITH THESE MEASURES THE REGIME HOPES TO SPUR CUBAN EXILES TO SEND MILLIONS OF DOLLARS TO HARDPRESSED RELATIVES IT ALSO HOPES TO DRAIN THE US CURRENCY FROM THE COUNTRY'S ENORMOUS DOLLARDOMINATED BLACK MARKET CUBA IS ALSO CONSIDERING SIGNIFICANTLY INCREASING THE NUMBER OF EXILES ALLOWED TO VISIT THE ISLAND WHILE THE MEASURES COULD PROVIDE A BIG CASH INFLUX THEY OPEN UP SOCIAL AND POLITICAL PROBLEMS FOR MR CASTRO UNTIL NOW IT HAS BEEN EASY FOR THE GOVERNMENT TO EXERCISE A HIGH DEGREE OF SOCIAL CONTROL BECAUSE THE ENTIRE COUNTRY HAS BEEN A ONECOMPANY TOWN WHERE EVERY CUBAN DEPENDS ON THE GOVERNMENT'S GOOD GRACES FOR WORK BUT NOW THE REGIME'S CONTROL OVER INDIVIDUALS COULD WELL BE SHARPLY DIMINISHED BEING ON GOOD TERMS WITH MIAMI RELATIVES MAY BECOME MORE IMPORTANT THAN BEING A DIEHARD SUPPORTER OF THE GOVERNMENT AT ANY RATE THE MEASURE WILL DEEPEN SOCIAL DIVISIONS AS NOT EVERYONE IN CUBA HAS THE SAME ACCESS TO DOLLARS WHAT IS GOING TO HAPPEN TO SOCIAL PEACE WHEN ALL OF A SUDDEN ALL THE PEOPLE WHO DON'T HAVE ACCESS TO DOLLARS GO BERSERK ASKS ANDREW ZIMBALIST AN EXPERT ON THE CUBAN ECONOMY WHO TEACHES AT SMITH COLLEGE IN NORTHAMPTON MASS BARRING A MIRACLE MOST ANALYSTS BELIEVE CUBA'S MEASURES ARE TOO LITTLE TOO LATE I REALLY FEEL THIS IS THE END SAYS MARIFELI PEREZSTABLE A CUBA SPECIALIST AT THE STATE UNIVERSITY OF NEW YORK IN OLD WESTBURY THE QUESTION IS HOW LONG CAN THE END LAST FOR THE FIRST TIME IN 34 YEARS CUBA HAS CANCELED THE MASS PARADE HELD ANNUALLY ON JULY 26 TO COMMEMORATE THE MOST IMPORTANT EVENT ON THE REVOLUTIONARY CALENDAR THE BEGINNING OF MR CASTRO'S INSURRECTION TOO COSTLY SAYS THE GOVERNMENT TRUE BUT ALSO PERHAPS TOO DANGEROUS SAYS EDWARD GONZALEZ A RAND CORP ANALYST RECALLING THE BLOODY END OF ROMANIA'S NICOLAE CEAUCESCU TRIGGERED BY AN UNFORTUNATE APPEARANCE AT A MASS RALLY IN HAVANA THE ELECTRICITY IS USUALLY OFF FOOD EXCEPT AT TOURIST HOTELS IS HARD TO FIND MANY OF HAVANA'S CATS HAVE BEEN EATEN MEANWHILE PROSTITUTION WHOSE ELIMINATION WAS ONE OF THE CUBAN GOVERNMENT'S PROUDEST BOASTS FLOURISHES A FIXTURE OF HAVANA LIFE THESE DAYS ARE THE MANY YOUNG GIRLS KNOWN AS JINETERAS OR JOCKEYS WHO WILL ACCOMPANY TOURISTS FOR THE PRIVILEGE OF A HOTEL MEAL CUBA WHOSE HEALTHCARE SYSTEM WAS ONCE THE CASTRO REGIME'S CROWNING ACHIEVEMENT HAS HAD TO TURN TO THE INTERNATIONAL COMMUNITY FOR DONATIONS AND MEDICAL HELP MOST CUBA WATCHERS BELIEVE THE SITUATION CAN ONLY GET WORSE EVENTUALLY YOU WILL START SEEING SOME DISEASES THAT YOU HAVE NOT SEEN IN A LONG TIME SAID ELAINE WILLIAMS PRESIDENT OF THE ILLINOIS NURSES ASSOCIATION AT A PRESS CONFERENCE AFTER A TRIP TO CUBA ALREADY CUBA HAS BEEN HIT BY A MYSTERIOUS NERVE MALADY THAT HAS AFFECTED 46000 PEOPLE MALNUTRITION IS SUSPECTED OF BEING THE PRIME CAUSE OF THE DISEASE WHICH CAN CAUSE BLINDNESS GRANMA THE OFFICIAL COMMUNIST PARTY NEWSPAPER HAS URGED CUBANS TO EAT THE SEEDS LEAVES AND FLOWERS OF VEGETABLES TO MAKE UP FOR THE VITAMINS THEIR MEAGER DIET DOESN'T PROVIDE IN MIAMI THE MOST DRAMATIC INDICATOR OF CUBA'S DETERIORATION IS THE GROWING NUMBER OF DESPERATE RAFTERS WHO DAILY LAND THERE AFTER CROSSING THE PERILOUS FLORIDA STRAITS ONE OF THOSE RAFTERS RAISA SANTANA ARRIVED IN MIAMI UNCONSCIOUS SHE SET OUT IN MAY ON A RAFT WITH HER NINEYEAROLD SON AND TWO COMPANIONS DURING THE FOURDAY ORDEAL BOTH MEN DROWNED FRESH WATER BEGAN TO RUN OUT MS SANTANA GAVE HERS TO HER SON AND DRANK SEAWATER INSTEAD BY THE TIME THE RAFT WAS SPOTTED BY A CRUISE SHIP MS SANTANA WAS IN A COMA SHE NEVER RECOVERED HER SON FRANK SURVIVED LAST YEAR 2500 RAFTERS MADE IT TO SOUTH FLORIDA AS OF JUNE 30 THIS YEAR 1131 HAVE MADE IT A 48 INCREASE FROM THE SAME PERIOD IN 1992 TRADITIONALLY THE BIGGEST MONTHS FOR RAFTERS HAVE BEEN JULY AUGUST AND SEPTEMBER WHEN WATERS ARE CALMER ON THE FLORIDA STRAITS MANY MIAMIANS BELIEVE THAT THE TRICKLE WILL SOON BECOME A CURRENT IF NOT A FLOOD FRIGHTENED BY LETTERS AND TELEPHONE CONVERSATIONS WITH THEIR RELATIVES IN CUBA EXILES IN MIAMI HAVE FLOODED THE ISLAND WITH PACKAGES OF MEDICINE AND FOOD AT A COST OF 10 PER POUND SUCH AID WHICH IS PERMITTED BY US LAW AMOUNTS TO ABOUT 400 MILLION A YEAR ACCORDING TO ANTONIO JORGE AN ECONOMIST AT FLORIDA INTERNATIONAL UNIVERSITY IN HAVANA A COMMON JOKE IS THAT CUBANS ARE GETTING BY ON FE SPANISH FOR FAITH BUT ALSO AN ACRONYM FOR THE SPANISH PHRASE FOR FAMILY ABROAD FE IS AT WORK ALL OVER MIAMI ON A RECENT DAY THE HIALEAH OFFICE OF CUBA PAQUETE ONE OF ABOUT 100 BUSINESSES THAT FORWARD FOOD MEDICINE AND CLOTHING TO CUBA WAS PACKED FULL OF ELDERLY WOMEN AND WEATHERBEATEN MEN SENDING HELP TO HARDPRESSED RELATIVES ON THE ISLAND TRAVEL AGENCIES FREIGHT FORWARDING AND REMITTANCE COMPANIES THAT DO BUSINESS WITH CUBA DRAW THE IRE OF CONSERVATIVE EXILES POLITICAL HOMOSEXUALS WHO WANT TO SAVE THEIR MACHO FIDEL MIAMI RADIO COMMENTATOR ARMANDO PEREZROURA SNEERINGLY LABELED ANTIEMBARGO ACTIVISTS IN A RECENT EDITORIAL LOCAL CUBANAMERICAN LEGISLATORS WITH THE BACKING OF THE CUBAN AMERICAN NATIONAL FOUNDATION THE POWERFUL CONSERVATIVE LOBBY ARE ATTEMPTING TO SHUT DOWN THE COMPANIES ON MAY 20 CUBAN INDEPENDENCE DAY FLORIDA GOV LAWTON CHILES SIGNED A BILL DURING THE FOUNDATION'S ANNUAL MEETING THAT PROHIBITS FLORIDA FROM DOING BUSINESS WITH COMPANIES THAT DO BUSINESS WITH CUBA DADE COUNTY WHICH INCLUDES MIAMI PASSED A SIMILAR LAW BOTH LAWS ARE BEING CHALLENGED IN FEDERAL COURT ON CONSTITUTIONAL GROUNDS THE MIAMI DEBATE MIRRORS WHAT PROMISES TO BECOME A LARGER DEBATE IN WASHINGTON THE POLES OF THE DEBATE IN SIMPLE TERMS ARE WHETHER TO SQUEEZE CUBA UNTIL THE COUNTRY EXPLODES TAKING MR CASTRO WITH IT OR OPENING UP AND IN EFFECT KILLING MR CASTRO WITH KINDNESS IN BOTH MIAMI AND WASHINGTON PLENTY OF PEOPLE THINK IT IS TIME TO RECONSIDER WHETHER THE EMBARGO SHOULD BE MAINTAINED LET'S END THE FOOD AND MEDICINE EMBARGO AND NEGOTIATE THE REST SAYS ENRIQUE BALOYRA A CUBA ANALYST AT THE UNIVERSITY OF MIAMI AND DIRECTOR OF INTERNATIONAL RELATIONS OF THE SOCIAL DEMOCRATIC PARTY IN EXILE THAT SAYS MR BALOYRA WOULD STOP MAKING THE US THE HEAVY IN THE EYES OF ITS LATIN AMERICAN AND EUROPEAN ALLIES AND MOST IMPORTANTLY IN THE EYES OF THE CUBAN PEOPLE KEY MEMBERS OF THE CLINTON ADMINISTRATION ARE ALSO ON RECORD AS FAVORING CHANGES IN US POLICY TOWARD CUBA WHEN HE WAS PRESIDENT OF THE INTERAMERICAN DIALOGUE A WASHINGTONBASED THINK TANK RICHARD FEINBERG URGED THE US GOVERNMENT TO DECREASE TENSIONS WITH CUBA BY AMONG OTHER THINGS PERMITTING TOURISM TO THE ISLAND THESE DAYS MR FEINBERG IS IN CHARGE OF LATIN AMERICAN AFFAIRS AT THE NATIONAL SECURITY COUNCIL WHERE ACCORDING TO A PRESS AIDE HE IS NOT TAKING ANY QUESTIONS ON CUBA UNTIL WE HAVE A CUBA POLICY THE EMBARGO IS ALSO BEING CHALLENGED IN CONGRESS NEW YORK DEMOCRATIC REP CHARLES RANGEL HAS INTRODUCED LEGISLATION TO REPEAL A LAW CONGRESS PASSED LAST YEAR THAT TIGHTENED THE EMBARGO ANOTHER HOUSE BILL WOULD EASE RESTRICTIONS ON AMERICANS TRAVELING TO CUBA AMONG OTHER COUNTRIES BUT CANDIDATE CLINTON SIGNED ON TO THE LAW THAT TIGHTENED THE EMBARGO AND HAS REITERATED HIS SUPPORT SINCE MOST ANALYSTS SAY THAT BARRING A DRAMATIC DEVELOPMENT SUCH AS A SOMALIATYPE FAMINE ON THE ISLAND THERE IS LITTLE CHANCE THAT THE EMBARGO WILL BE LIFTED EVEN ON THE PURCHASE OF FOOD AND MEDICINE THE ADMINISTRATION CONTINUES TO BE VERY TOUGH ON CUBA ON IMPLEMENTING THE EMBARGO SAYS DEPUTY ASSISTANT SECRETARY OF STATE ROBERT GELBARD THERE IS NO REASON FOR ANYONE TO BELIEVE THERE IS GOING TO BE ANY MOVE FROM A VERY TOUGH POSITION ON THE ISSUE OF CUBA THE MAIN REASON CUBA IS A POTENTIAL POLITICAL HORNETS' NEST WITH A FULL PLATE OF INTERNATIONAL AND DOMESTIC ISSUES THERE IS NO PERCENTAGE FOR PRESIDENT CLINTON TO INITIATE WHAT WOULD SURELY BE CONSIDERED BY CONSERVATIVE CUBANAMERICANS A CONTROVERSIAL CHANGE OF POLICY THAT HAS NOT DISCOURAGED CUBAN OFFICIALS FROM MR CASTRO ON DOWN FROM SENDING A CONSTANT STREAM OF CONCILIATORY SIGNALS SINCE MR CLINTON'S ELECTION BUT WHILE DESPERATELY HOPING THAT THE US WILL LIFT THE EMBARGO HAVANA HAS MADE IT EQUALLY CLEAR THAT IT IS UNWILLING TO TAKE ANY OF THE DEMOCRATIZING MEASURES THE US DEMANDS AS A QUID PRO QUO FOR NORMAL RELATIONS OUR CURRENT PROBLEM IS NOT POLITICAL SAID MR LAGE THE CHIEF CUBAN ECONOMIST DURING A RECENT VISIT TO CHILE OUR PROBLEM IS ECONOMIC THE CHANGES WE HAVE TO MAKE ARE ECONOMIC MR BALOYRA SAYS THAT MR CASTRO MISREADS PERHAPS TRAGICALLY THE CLINTON ADMINISTRATION ACCORDING TO MR BALOYRA MR CASTRO THINKS HE MIGHT BE ABLE TO SWAY THE US TO LIFT THE EMBARGO BUT HE DOESN'T REALIZE THAT CUBA IS A DOMESTIC US POLICY ISSUE AND CUBANAMERICANS MOST OF WHOM LIVE IN THE POLITICALLY KEY STATE OF FLORIDA HAVE FAR MORE CLOUT IN WASHINGTON THAN HAVANA DOES THAT MEANS THAT PROGRESS IN RELATIONS BETWEEN THE TWO COUNTRIES IS POSSIBLE ONLY IN THE MARGINS RECENTLY THE STATE DEPARTMENT ANNOUNCED THAT CUBAN EXILES WHO ATTEMPTED TO CARRY OUT ARMED RAIDS ON CUBA WOULD FACE CRIMINAL AND CIVIL PENALTIES IN MARCH US COAST GUARD OFFICIALS MET FOR TWO DAYS IN HAVANA WITH THEIR CUBAN COUNTERPARTS TO DISCUSS HOW TO IMPROVE COORDINATION AND COMMUNICATIONS BETWEEN THE TWO SERVICES ON SUCH THINGS AS SEARCH AND SEIZURE PROCEDURES THIS WAS THE FIRST SUCH MEETING SINCE THE 1970S BUT ON JULY 5 EVEN THIS MODEST WARMING TREND CAME TO A SUDDEN END THE STATE DEPARTMENT SENT CUBA A STRONG NOTE PROTESTING A SERIES OF FIVE INCIDENTS IN LATE JUNE WHEN ACCORDING TO THE US CUBAN FRONTIER GUARDS FIRED ON AND THREW GRENADES AT CUBANS TRYING TO SWIM TO THE SAFETY OF THE US GUANTANAMO BAY NAVAL BASE KILLING AT LEAST FOUR CUBA DENIED THAT ANYONE WAS HURT IT'S AN ACT OF SINGULAR BARBARITY SAYS A STATE DEPARTMENT OFFICIAL AND PERHAPS A SIGN OF THINGS TO COME 9307190093 930719 EMC'S NET INCOME SURGED TO 27 MILLION IN THE SECOND QUARTER HOPKINTON MASS EMC CORP REPORTED THAT ITS NET INCOME MORE THAN QUADRUPLED IN THE SECOND QUARTER ON SURGING SALES OF ITS MAINFRAME DISK DRIVES THE COMPANY HAD NET INCOME OF 27 MILLION OR 26 CENTS A SHARE IN THE QUARTER UP FROM 61 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER REVENUE MORE THAN DOUBLED TO 171 MILLION FROM 799 MILLION MICHAEL C RUETTGERS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID EARNINGS REFLECTED A SIGNIFICANT INCREASE IN SALES OF MAINFRAME DRIVES PARTICULARLY EMC'S SYMMETRIX 5500 INTRODUCED IN NOVEMBER IN AN INTERVIEW MR RUETTGERS ADDED THAT THE NEW MACHINE HASN'T WEAKENED SALES OF OTHER EMC MODELS AS SOME SECURITIES ANALYSTS HAD EXPECTED EMC'S FAST GROWTH IS BASED ON A DISKDRIVE TECHNOLOGY CALLED REDUNDANT ARRAYS OF INEXPENSIVE DISKS OR RAID WHICH IT SELLS MAINLY FOR USE WITH INTERNATIONAL BUSINESS MACHINES CORPCOMPATIBLE MAINFRAME AND MIDRANGE COMPUTERS EMC ESTIMATES THAT ITS SHARE OF THE MAINFRAME DISKDRIVE MARKET NOW EXCEEDS 10 MR RUETTGERS SAID MAJOR CUSTOMERS ARE MAKING MAJOR COMMITMENTS TO US WHICH MEANS OUR MARKET WINDOW ISN'T LIKELY TO CLOSE ANYTIME SOON HE SAID ON THURSDAY EMC ANNOUNCED THAT IT EXPECTS TO EXPAND ITS WORLDWIDE WORK FORCE BY 40 THIS YEAR FROM THE CURRENT LEVEL OF 1600 PEOPLE IN 60 OFFICES WORLDWIDE EMC'S RESEARCH AND DEVELOPMENT SPENDING IS EXPECTED TO RISE TO ABOUT 45 MILLION THIS YEAR FROM ABOUT 30 MILLION LAST YEAR MR RUETTGERS SAID HE ADDED THAT THE COMPANY IS WORKING ON ADDITIONS TO ITS HARMONIX LINE OF DISK DRIVES FOR MIDRANGE COMPUTERS BUT DECLINED TO ELABORATE 9307190092 930719 SMITH BARNEY SHEARSON PAY PACKAGE FOR BROKERS RECEIVES MIXED REVIEWS BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMITH BARNEY SHEARSON INC'S MUCHANTICIPATED COMPENSATION AND BENEFITS PACKAGE RECEIVED MIXED REVIEWS ONE DAY AFTER THE FIRM UNVEILED THE PLAN TO ITS 10500MEMBER BROKER FORCE DETAILS OF THE PACKAGE WHICH GO INTO EFFECT IN 1994 WERE DELIVERED THURSDAY BY JOSEPH PLUMERI PRESIDENT OF THE SOONTOBEMERGED FIRM THROUGH ITS INTERNAL COMMUNICATION SYSTEM THE MERGER SCHEDULED TO CLOSE JULY 30 IS A COMBINATION OF PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO UNIT AND THE BROKERAGE AND ASSETMANAGEMENT DIVISIONS OF SHEARSON LEHMAN BROTHERS INC SHEARSON LEHMAN BROTHERS IS A SUBSIDIARY OF AMERICAN EXPRESS CO WHICH IS RECEIVING 115 BILLION FOR THE UNITS SEVERAL BROKERS AND COMPANY OFFICIALS SAID THE NEW FIRM INTENDS TO KEEP MOST OF SMITH BARNEY'S PAYOUT GRID ONE NEW WRINKLE WILL BE TO RETAIN SMITH BARNEY'S HIGHER PAYOUT TO HIGHEND PRODUCERS AND SHEARSON'S HIGHER PAYOUT FOR LOWEND PRODUCERS SOME SMITH BARNEY BROKERS HOWEVER EXPRESSED DISPLEASURE OVER THE DISCONTINUATION OF THEIR DEFERRED PAYOUT PLAN IN WHICH 1 OF THEIR PAYOUT WAS DEFERRED FOR FIVE YEARS AND THEN PAID OUT AT 15 ANOTHER HIGHLIGHT OF THE PLAN IS THAT BROKERS WILL BE PAID 3 ABOVE THEIR USUAL PAYOUT RATE FOR SALES OF PROPRIETARY MUTUAL FUNDS AND 2 LESS FOR SALES OF NONPROPRIETARY FUNDS ALSO THE NEW FIRM ADOPTED SHEARSON'S PENSION CONTRIBUTION PLAN UNDER WHICH CONTRIBUTIONS WILL BE MADE TO THE PLAN BASED ON EARNINGS OF AS MUCH AS 235000 THE FEDERALLY MANDATED LEGAL CEILING PREVIOUSLY SMITH BARNEY EMPLOYEES COULD CONTRIBUTE TO THE PLAN ON EARNINGS ONLY UP TO 150000 SMITH BARNEY SHEARSON ADOPTED SMITH BARNEY'S EXISTING MEDICAL PLAN WITH UNLIMITED BENEFITS A SHEARSON OFFICIAL SAID THE MOVE HELPS SHEARSON BROKERS WHO PREVIOUSLY HAD A 1 MILLION CAP SHEARSON'S DENTAL BENEFITS JUDGED LESS EXPENSIVE TO BROKERS WERE ALSO MADE PART OF THE BENEFITS PLAN OTHER ELEMENTS OF THE OVERALL PACKAGE INCLUDE RETENTION OF SMITH BARNEY'S LONGEVITY BONUS AND THE INCLUSION OF FIXEDINCOME ASSETS AS PART OF BROKERS' PAYOUT ANOTHER NOVEL BENEFICIAL DEVELOPMENT FOR SHEARSON BROKERS FOR THE MORE THAN 9000 SHEARSON BROKERS THE MERGED PACKAGE MEANS INSURANCE IS LIKELY TO BE MORE EXPENSIVE HOWEVER THEY WILL BE ABLE TO PARTICIPATE IN PRIMERICA'S CAPITAL ACCUMULATION PLAN THE PLAN ALREADY IN PLACE FOR SMITH BARNEY BROKERS IS A TRADEMARK OF PRIMERICA CHAIRMAN SANFORD WEILL IT ALLOWS BROKERS TO SET ASIDE AS MUCH AS 20 OF THEIR COMPENSATION FOR SIX MONTHS AFTER WHICH THEY CAN BUY COMPANY STOCK AT A 30 DISCOUNT IN THE PAST FOUR YEARS PRIMERICA SHARES HAVE MORE THAN TRIPLED THE PURCHASED STOCK IS RESTRICTED AND CANNOT BE SOLD FOR AT LEAST TWO YEARS EVERYBODY IN THIS OFFICE IS ECSTATIC SAID A TEXASBASED SHEARSON BROKER IT'S EXCITING TO BE OWNED BY SOMEONE WHO REALLY WANTS YOU THAT'S A NICE CHANGE FROM AMERICAN EXPRESS FOR SMITH BARNEY'S 1500 BROKERS THERE IS SOME DISCONTENT ABOUT LOSING THEIR DEFERRED PAYOUTS I'M NOT HAPPY ABOUT LOSING THAT IT'S A PAY CUT SAID A NEW JERSEYBASED SMITH BARNEY BROKER BUT I AM IMPRESSED WITH THE PROPOSALS IN HIS ADDRESS MR PLUMERI REPORTEDLY SAID THAT THE FIRM WAS INTENT ON KEEPING TO ITS WORD OF DELIVERING A PLAN IN JULY IN ORDER TO GIVE BROKERS ENOUGH TIME TO GAUGE THE PACKAGE THEY DID A MASTERFUL JOB OF COMING UP WITH A COMPROMISE SAID ONE SMITH BARNEY BRANCH MANAGER HAD THEY MADE ANY MAJOR MISTAKES THIS PLACE WOULD HAVE BEEN IN TURMOIL 9307190090 930719 MARKETING MARLBORO PRICE ALREADY CUT MAY REMAIN SO BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS IS CONSIDERING MAKING ITS MARLBORO PRICE CUT PERMANENT A MOVE THAT WOULD PROBABLY FORCE OTHER PREMIUM BRANDS TO FOLLOW SUIT AND FURTHER HURT CIGARETTEINDUSTRY PROFITS PHILIP MORRIS HAS BEEN CROWING OVER THE SUCCESS OF ITS HIGHLY PUBLICIZED PRICE CUT OF 40 CENTS A PACK FOR MARLBOROS THAT REDUCTION HAS RESULTED IN MARKETSHARE GAINS OF AS MUCH AS 35 IN SOME AREAS FOR THE US'S NO 1 BRAND SINCE THE PROMOTION WENT INTO EFFECT IN LATE MAY BUT MAKING THE PRICE CUT PERMANENT WOULD BE AN ADMISSION THAT THE SHARE GAIN IS TEMPORARY AND WOULD VANISH IF THE PRICE WERE RAISED BACK UP LAST WEEK THE COMPANY CONFIRMED THAT IT WAS STRONGLY CONSIDERING A PERMANENT LISTPRICE REDUCTION FOR MARLBORO BUT IT EMPHASIZED THAT THE PRICE CUT WAS ONE OF SEVERAL POSSIBILITIES UNDER CONSIDERATION A SPOKESWOMAN SAID THE COMPANY WAS CONSIDERING DOING SOMETHING MORE PERMANENT WITH THE PRICE A PERMANENT LISTPRICE REDUCTION WOULD SIMPLIFY THE MARLBORO PROMOTION WHICH HAS BEEN A LOGISTICAL NIGHTMARE REQUIRING PHILIP MORRIS TO HIRE THE SOCALLED MARLBORO POLICE A 2500PERSON FORCE OF TEMPORARY WORKERS TO CHECK THAT EACH STORE IS FOLLOWING THE RULES OF THE PROMOTION THE PROMOTIONAL PROGRAM HAS PROVEN SO LABORINTENSIVE AND DIFFICULT TO MANAGE THAT PHILIP MORRIS MANAGEMENT HAS ASKED TOBACCODIVISION EMPLOYEES TO AVOID TAKING VACATIONS THIS SUMMER IT IS AN INCREDIBLY INEFFICIENT WAY OF DOING IT A PERSON FAMILIAR WITH PHILIP MORRIS SAID OF THE CURRENT PROMOTION THE PERSON SAID THAT IF PHILIP MORRIS DECIDED TO PROCEED WITH THE MARLBORO MOVE THE REDUCTION WOULD PROBABLY INCLUDE OTHER FULLPRICE PHILIP MORRIS BRANDS IT WOULD BE INCREDIBLY COMPLICATED NOT TO THE PERSON SAID ADDING IT WOULD SEND THE WRONG MESSAGE ABOUT MARLBORO INDUSTRY ANALYSTS AGREED THAT A ONEBRAND MOVE COULD HURT MARLBORO'S IMAGE YOU CAN'T HAVE MARLBORO AT 170 AND BENSON & HEDGES ANOTHER PHILIP MORRIS BRAND AT 210 SAID GARY BLACK TOBACCO ANALYST FOR SANFORD C BERNSTEIN & CO THE 18YEAROLDS AREN'T GOING TO SMOKE MARLBORO IF IT'S A SECONDTIER BRAND PHILIP MORRIS STOCK SLID 43 IN FRIDAY'S COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CLOSING AT 4775 DOWN 2125 AFTER MR BLACK ISSUED A REPORT SAYING A LISTPRICE CUT WAS LIKELY ON FRIDAY PHILIP MORRIS EMPHASIZED THAT NO FINAL DECISION HAD BEEN MADE THE COMPANY MAY SIMPLY CONTINUE THE 40CENTOFF PROMOTION OR THE REDUCTION COULD BE OFFERED PERIODICALLY DURING THE REST OF THE YEAR THE CURRENT PROMOTION IS SCHEDULED TO EXPIRE AUG 8 PHILIP MORRIS IS EXPECTED TO UNVEIL ITS NEXT PRICING MOVE AT A SERIES OF MEETINGS WITH ITS 3000PERSON NATIONAL SALES FORCE THIS WEEK MR BLACK SAID A PRICE CUT BY PHILIP MORRIS WOULD HAVE DIRE IMPLICATIONS FOR THE PROFIT OUTLOOK OF THE CIGARETTE INDUSTRY IT'S AN ADMISSION THAT THEY CAN'T JUST RAISE PRICES AT WILL HE SAID NOTING THAT MOST OF THE PROFIT GROWTH FOR CIGARETTE COMPANIES OVER THE PAST DECADE HAS RESULTED FROM AGGRESSIVE PRICE INCREASES THE SHARP PRICE INCREASES LED TO THE EXPLOSION IN POPULARITY OF DISCOUNT CIGARETTES THAT FORCED PHILIP MORRIS TO ANNOUNCE ON APRIL 2 THAT IT PLANNED TO SLASH THE PRICE OF MARLBORO A SPOKESWOMAN FOR RJR NABISCO HOLDINGS CORP THE NATION'S SECONDLARGEST CIGARETTE MAKER DECLINED TO COMMENT ON THE BIG BOARD FRIDAY RJR STOCK FELL 64 TO 550 DOWN 375 CENTS 9307190089 930719 GELLER EXPANDS STAKE IN RODMAN BROKERAGE FIRM INVESTOR VOICES CRITICISM OF CORPORATE STRATEGY SEEKS TO ALTER COURSE BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IN A DEVELOPMENT THAT MAY PROMISE FURTHER TURMOIL AT CHICAGO BROKERAGE RODMAN & RENSHAW CAPITAL GROUP INC CALIFORNIA INVESTOR MARSHALL E GELLER DISCLOSED THAT HE BOOSTED HIS STAKE IN THE FIRM TO 51 AND MAY SEEK TO FORCE CHANGES MR GELLER SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT HE DOESN'T FULLY AGREE WITH THE CURRENT CORPORATE STRATEGIES AND GOALS THE COMPANY IS PURSUING THE SECURITIES AND COMMODITIES COMPANY NEEDS A CHANGE OF DIRECTION HE SAID IN AN INTERVIEW MY INTENTION AT THIS PARTICULAR MOMENT IS TO CONTINUE TO BUY STOCK AND TO CONTINUE TO SIT WITH MANAGEMENT AND TRY TO DEVELOP A STRATEGY I WILL BE HAPPY WITH IF THOSE STRATEGIES WHICH HE DECLINED TO OUTLINE AREN'T PURSUED HE SAID THEN I WOULD HAVE TO TAKE STEPS IN ORDER TO PROTECT MY INVESTMENT HE DIDN'T SAY WHAT THOSE STEPS MIGHT INCLUDE RODMAN & RENSHAW RECENTLY HAS BEEN RIVEN BY INTERNAL DISSENSION AND SEVERAL HIGHLEVEL DEPARTURES CENTERING ON ITS CHAIRMAN AND CHIEF EXECUTIVE ONETIME DREXEL BURNHAM LAMBERT INC OFFICIAL KURT KARMIN SINCE BECOMING CHAIRMAN IN 1990 MR KARMIN HAS PRESSED TO EXTEND THE SECURITIES FIRM FROM A MIDWEST REGIONAL OPERATION TO A NATIONAL AND INTERNATIONAL PRESENCE AND HE HAS EXPANDED ITS NONRETAIL BROKERAGE OPERATIONS THOSE EFFORTS HAVE MET WITH MIXED RESULTS AND A SIGNIFICANT AMOUNT OF INTERNAL RESISTANCE SOME OF THOSE EXPANSIONIST BIDS HAVE BEEN CALLED OFF ALREADY LAST MONTH RODMAN AGREED TO SELL ITS LONDONBASED FUTURES AND OPTIONS BUSINESS AND IT EARLIER DISBANDED ITS ENERGY FUTURES CLEARING HOUSE IN NEW YORK ACCORDING TO HIS SEC FILING MR GELLER HAS PURCHASED 119300 RODMAN SHARES SINCE JUNE 9 MORE THAN DOUBLING HIS HOLDINGS TO A TOTAL OF 223300 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY RODMAN SHARES CLOSED UP 25 CENTS AT 675 MR GELLER 54 YEARS OLD WAS A SENIOR MANAGING PARTNER FOR BEAR STEARNS & CO AND SERVED FOR SEVERAL YEARS AS HEAD OF ITS CHICAGO OFFICE HE LEFT BEAR STEARNS AT THE END OF 1989 TO BECOME VICE CHAIRMAN OF GRUNTAL & CO IN 1990 HE DEPARTED TO FORM HIS OWN MERCHANT BANKING OPERATION GOLDENBERG & GELLER INC MR GELLER SITS ON THE BOARD OF A NUMBER OF COMPANIES IN WHICH HE HOLDS SIGNIFICANT STAKES INCLUDING THE AMERIHOST PROPERTIES INC HOTEL CHAIN GAMING CONCERN PLAYERS INTERNATIONAL INC AND REAL ESTATE COMPANY ANGELES CORP HE RECENTLY SERVED AS INTERIM PRESIDENT AND CHIEF OPERATING OFFICER AT PLAYERS MR GELLER ACQUIRED HIS INITIAL STAKE IN RODMAN & RENSHAW AS ONE OF SEVERAL UNRELATED BUYERS OF SEPARATE PORTIONS OF THE 547000SHARE OR 125 STAKE HELD BY RETIRED CHAIRMAN AND CHIEF EXECUTIVE IRA KAUFMAN MR KAUFMAN BECAME CRITICAL OF HIS SUCCESSOR'S EXPANSION POLICIES AND SOLD HIS STAKE WHEN HE RESIGNED AS A RODMAN DIRECTOR EARLIER THIS YEAR TWO OTHER LONGTIME BOARD MEMBERS RESIGNED THEIR POSTS AND SHORTLY AFTERWARD SOLD SIGNIFICANT BLOCKS OF THEIR SHARES IN ALL BOARD MEMBERSHIP HAS DECLINED FROM 15 TO 10 DIRECTORS SINCE LATE 1992 RODMAN OFFICIALS WHILE MAINTAINING THAT WE WELCOME MR GELLER'S INPUT CONTEND IT WASN'T CLEAR WHAT CHANGES MR GELLER SEEKS I BASICALLY AGREE WITH WHAT HE SAYS SAID MR KARMIN THE CHAIRMAN THAT OUR DIRECTION HAD TO BE SOMEWHAT CHANGED BUT HE ADDED WE'VE ALREADY DONE THAT THROUGH MOVES INITIATED LAST WINTER MR GELLER HE SAID IS TALKING ABOUT THE PAST NOT THE PRESENT 9307190088 930719 OTC FOCUS BUT TECHNOLOGY ILLS HURT OTC RALLY BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRICES OF MANY SMALL STOCKS KEEP PUSHING HIGHER BUT BAD EARNINGS AMONG SOME BIG TECHNOLOGY STOCKS ARE STUNTING THE OVERTHECOUNTER MARKET'S SUMMER RALLY THE NASDAQ COMPOSITE INDEX FINALLY HIT A NEW RECORD LAST WEEK THANKS TO STRONG RALLIES IN TELECOMMUNICATIONS CELLULAR AND CABLE STOCKS BUT THE RUSSELL 2000 INDEX COMPRISED OF THE SMALLEST 2000 STOCKS ON THE NEW YORK AND AMERICAN STOCK EXCHANGES AND THE NASDAQ HAS BEEN HITTING RECORDS SINCE JUNE A TELLING ILLUSTRATION OF THE EFFECTS THAT LAGGARD BIG STOCKS HAVE HAD ON THE NASDAQ THERE IS A DICHOTOMY IN THE NASDAQ MARKET BETWEEN THE SMALL STOCKS AND THE REALLY BIG STOCKS SAYS CLAUDIA MOTT A MARKET STRATEGIST WITH PRUDENTIAL SECURITIES NASDAQ USED TO BE SYNONYMOUS WITH THE SMALLSTOCK MARKET BUT THESE BIG TECHNOLOGY STOCKS LIKE AN APPLE OR A DELL CARRY SO MUCH WEIGHT THAT WHEN THEY FALL IT BRINGS THE WHOLE MARKET DOWN APPLE COMPUTER AND DELL COMPUTER ARE JUST TWO OF THE BIGGEST CULPRITS IN THE NASDAQ'S RELATIVELY SLUGGISH PERFORMANCE LAST WEEK THEY TOOK MORE OF A BEATING ON NEWS OF LOSSES INSTEAD OF EARNINGS APPLE PLUNGED 8 1/4 TO 27 1/2 ON FRIDAY AFTER POSTING A FISCAL THIRDQUARTER LOSS OF 163 A SHARE COMPARED WITH A NET GAIN OF 107 A SHARE A YEAR EARLIER APPLE'S FAILURE ALONG WITH A FEW OTHER TECHNOLOGY DISAPPOINTMENTS DRAGGED DOWN THE NASDAQ COMPOSITE INDEX WHICH PLUNGED 896 TO 69973 ON FRIDAY THE INDEX HAD ALREADY FALLEN ON THURSDAY FROM ITS NEW RECORD OF 71249 REACHED WEDNESDAY PARTLY BECAUSE OF A SELLOFF IN DELL COMPUTER DELL DROPPED 16 LAST WEEK CLOSING AT 16 ON FRIDAY ULTIMATELY MANY ANALYSTS BELIEVE THE POTENTIAL OF ANY SUMMER RALLY TO BREAK OUT TO SIGNIFICANT NEW HIGHS DEPENDS TO A GREAT EXTENT ON THE COMPUTERTECHNOLOGY SECTOR THIS IS A LIMITED RALLY SAYS PETER CANELO NATWEST SECURITIES' CHIEF MARKET STRATEGIST IN A CONFIDENT MARKET THERE SHOULD BE A CLEAN PUSH THROUGH THE HIGH ON GOOD VOLUME EVEN THOUGH TELECOMMUNICATIONS STOCKS ARE STRONG THE LACK OF KEY LEADERSHIP FROM TECHNOLOGY STOCKS LIMITS THE RALLY MR CANELO SAYS THE COMPOSITE INDEX COULD REACH 730 BUT HE EXPECTS A SIGNIFICANT INTERMEDIATETERM MIDCOURSE CORRECTION OF AS MUCH AS 15 SOMETIME DURING THE SECOND HALF OF THIS YEAR THIS BULL MARKET HAS BEEN GOING UP FOR 2 1/2 YEARS AND WE'RE DUE FOR A CORRECTION HE SAYS I DON'T KNOW IF IT COMES IN A FEW WEEKS OR A COUPLE OF MONTHS BUT WE'LL SEE SOME KIND OF A TOP IN THE NASDAQ MARKET SOMETIME THIS SUMMER MEANWHILE TELECOMMUNICATIONS CELLULAR AND CABLE STOCKS ARE PROVIDING THE FOUNDATION FOR THE SUMMER RALLY MANY OF THESE STOCKS HAVEN'T ENJOYED THE GROWTH OF THE COMPUTERTECHNOLOGY SECTOR BUT RECENTLY THEIR PRICES HAVE BEEN HITTING NEW HIGHS MCCAW CELLULAR COMMUNICATIONS EASED 1/2 TO 48 3/4 ON FRIDAY JUST OFF ITS HIGH OF 49 1/2 MCI COMMUNICATIONS AT 28 1/8 IS OFF ITS HIGH OF 28 7/8 AND TELECOMMUNICATIONS AT 23 1/4 IS JUST OFF ITS HIGH OF 25 1/2 THE HOTTEST AREA OUT THERE RIGHT NOW IS TELECOMMUNICATIONS SAYS JOSEPH BARTHEL DIRECTOR OF INVESTMENT STRATEGY AT FAHNESTOCK NOTING THAT BANK AND INSURANCE STOCKS ARE ENJOYING INVESTOR FAVOR TOO ALTHOUGH THE NASDAQ INSURANCE INDEX JUST CLIMBED TO A NEW HIGH OF 87919 ON WEDNESDAY IT SLIPPED ON THURSDAY AND ROSE 121 TO CLOSE AT 87603 ON FRIDAY THE NASDAQ BANK INDEX AT 63250 IS STILL WELL SHY OF ITS RECORD 64157 SET IN APRIL A BROAD ARRAY OF OTHER SMALL STOCKS ARE DOING WELL TOO THE RUSSELL 2000 INDEX UNDERWENT A SLIGHT SETBACK FRIDAY LOSING 138 TO 23616 AFTER HITTING A HIGH OF 23784 WEDNESDAY BUT WEDNESDAY'S RECORD WAS THE THIRD NEW HIGH OVER THE COURSE OF THE PAST MONTH IT'S REALLY THE SMALLER AND MIDSIZED COMPANIES LEADING THE RALLY SAYS GEORGE CONSTANTINE A TECHNICAL ANALYST WITH MERRILL LYNCH THERE IS BREADTH IN THE MARKET'S MOVEMENT UPWARD AND THE VALUATION LEVELS ARE LOW ENOUGH THAT WE COULD STILL SEE HIGHER PRICE LEVELS BEFORE THIS MARKET SPINS DOWNWARDS THE RUSSELL 2000 IS TRADING AROUND 156 TIMES ESTIMATED EARNINGS FOR THE NEXT 12 MONTHS WHILE THE RUSSELL 1000 AN INDEX OF THE BIGGEST STOCKS IS NOW AT A 157 PRICEEARNINGS MULTIPLE ANALYSTS FIGURE THAT UNTIL THE P/E ON SMALL STOCKS GETS CONSIDERABLY AHEAD OF THE P/E ON LARGE ISSUES SMALL STOCKS CAN KEEP CLIMBING SMALL RETAIL AND HEALTH CARE STOCKS HAVE BEEN PROVIDING SOME OF THE FUEL FOR THE SMALLSTOCK RALLY SAYS SUSAN HIRSCH AN EMERGINGGROWTH ANALYST AT SHEARSON LEHMAN BROTHERS HER GROWTH STOCK LIST INCLUDES THE DOMESTIC MERCHANDISER BED BATH & BEYOND WHICH CLOSED AT 23 ON FRIDAY JUST OFF ITS 52WEEK HIGH OF 25 A LOT OF BIG GROWTH LEADERS HAVE WAVERED SO INVESTORS NEED TO CONCENTRATE ON SELECTED STOCKS AND GROWTH IS HARD TO FIND SHE SAYS THESE AREN'T NEW LEADERS BUT MOMENTUM IS SHIFTING TO SOME OF THE RETAIL STOCKS WITH GOOD EARNINGS AND NOT ALL TECHNOLOGY STOCKS ARE BOMBING THERE IS NO QUESTION THAT WHEN THE BIG TECH STOCKS FALL IT NEGATIVELY AFFECTS THE GROUP BUT THERE ARE SOME ISSUES THAT ARE DOING WELL SAYS MIKE SCHMIDT AN ANALYST FOR SMALL TECH STOCKS AT PRUDENTIAL SECURITIES HE CITES TWO SMALL SEMICONDUCTOR STOCKS THAT HAVE LEAPED TO NEW HIGHS INTEGRATED DEVICE TECHNOLOGY WHICH CLIMBED 7/8 TO 12 7/8 FRIDAY AND ALTERA WHICH JUMPED 1 1/2 TO 24 1/4 PLUNGING TECHNOLOGY STOCKS KNOCKED DOWN THE OVERTHE COUNTER MARKET THE NASDAQ COMPOSITE INDEX TUMBLED 896 OR 126 TO 69973 DECLINING ISSUES OUTNUMBERED ADVANCERS 1528 TO 1144 ON TOTAL VOLUME OF 2828 MILLION SHARES DOWN FROM THURSDAY'S 3002 MILLION SHARES SANTA CRUZ OPERATION DROPPED 2 5/8 TO 5 5/8 THE SOFTWARE COMPANY SAID IT EARNED 7 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED JUNE 30 DOWN FROM 11 CENTS A YEAR EARLIER IN MAY THE SANTA CRUZ CALIF COMPANY PRICED SIX MILLION COMMON SHARES AT 12 1/2 IN AN INITIAL PUBLIC OFFERING AMTECH FELL 6 TO 20 5/8 AFTER A REPORT IN THE DALLAS MORNING NEWS SAID THE TEXAS TURNPIKE AUTHORITY HAD ENDED NEGOTIATIONS WITH THE MAKER OF ELECTRONIC VEHICLE IDENTIFICATION EQUIPMENT AND ITS JOINT VENTURE PARTNER MOTOROLA INC FOR A TOLL COLLECTION INTEGRATION SYSTEM AND VIDEO ENFORCEMENT SYSTEM A SPOKESWOMAN FOR AMTECH SAID THE COMPANY WAS VERY SURPRISED BY THE STOCK ACTIVITY BECAUSE IT WAS ONLY A SUBCONTRACTOR TO MOTOROLA AND WASN'T INVOLVED IN THE NEGOTIATIONS AN AUTHORITY SPOKESMAN SAID A SEPARATE PREVIOUSLY NEGOTIATED CONTRACT WITH AMTECH TO PROVIDE AN AUTOMATIC VEHICLE IDENTIFICATION SYSTEM REMAINS IN PLACE SEE RELATED STORY ABREAST OF THE MARKET LOW RATES LACK OF INFLATION SET STAGE FOR FURTHER GAINS BY BIG STOCKS WSJ JULY 19 1993 9307190087 930719 LAW LEGAL BEAT GINSBURG MAY NOT BE AS MODERATE AS HER JUDICIAL METHOD SUGGESTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL THE CONCLUSION THAT SUPREME COURT NOMINEE RUTH BADER GINSBURG IS A JUDICIAL MODERATE IS AS WIDELY ACCEPTED AS THE EXPECTATION THAT SHE WILL BE EASILY APPROVED BY THE SENATE BUT A CLOSE EXAMINATION OF HER TESTIMONY AT HER CONFIRMATION HEARINGS WHICH BEGIN TOMORROW BEFORE THE SENATE JUDICIARY COMMITTEE MAY REVEAL SURPRISINGLY EXPANSIVE IDEAS PRESENTED IN HER UNDERSTATED MANNER THE VETERAN JURIST'S COMMENTS AREN'T LIKELY TO ALARM MANY SENATORS SHE MAY EVEN BE CONFIRMED UNANIMOUSLY TO DETECT HER MORE SWEEPING VIEWS CONSIDER THE DIFFERENCE BETWEEN HER JUDICIAL METHOD AND THE SUBSTANCE OF HER PHILOSOPHY JUDGE GINSBURG 60 YEARS OLD HAS A 13YEAR RECORD OF UNIMPASSIONED INCREMENTAL DECISIONMAKING ON THE FEDERAL APPEALS COURT IN WASHINGTON AS A MATTER OF METHOD SHE BELIEVES COURTS SHOULD MOVE SLOWLY IN CHANGING LEGAL INTERPRETATIONS BUT IN ACADEMIC WRITINGS AND SPEECHES SHE HAS PROMOTED A VIEW OF EQUALITY AT ODDS WITH MAJOR HIGH COURT RULINGS AS A MEMBER OF THE TOP COURT SHE WOULD BE IN A POSITION TO TRY TO OVERTURN THOSE PRECEDENTS TAKE ABORTION FOR EXAMPLE JUDGE GINSBURG HAS ALARMED SOME LIBERALS BY ASSERTING THAT THE SUPREME COURT MOVED TOO AGGRESSIVELY IN ROE VS WADE THE LANDMARK 1973 RULING THAT ESTABLISHED BROAD CONSTITUTIONAL PROTECTION FOR ABORTION SHE ARGUES THAT THE COURT UNWISELY JUMPED IN FRONT OF STATE LEGISLATURES WHICH WERE GRADUALLY LOOSENING RESTRAINTS ON ABORTION ON THEIR OWN SHE SUGGESTS THAT THE JUSTICES SHOULD HAVE TAKEN THE SMALLER STEP OF STRIKING DOWN ONLY THE TEXAS CRIMINAL ABORTION BAN AT ISSUE IN ROE IF THEY HAD SHE REASONS THE ANTIABORTION MOVEMENT WOULDN'T HAVE GAINED AS MUCH FORCE AS IT HAS THE SUPREME COURT WOULDN'T HAVE BECOME SUCH AN OBJECT OF VILIFICATION AND GREATER ACCESS TO ABORTION COULD HAVE BEEN NEGOTIATED BY MEANS OF POLITICAL COMPROMISE IN CONTRAST TO HER CAUTIOUS STYLE OF JUDGING THE CONTENT OF JUDGE GINSBURG'S IDEAS ABOUT ABORTION ISN'T NECESSARILY TEMPERATE SHE HAS SCOLDED THE COURT FOR RESTING THE RIGHT TO ABORTION ON THE IMPLIED CONSTITUTIONAL GUARANTEE OF PRIVACY INSTEAD SHE WOULD HAVE RELIED ON THE 14TH AMENDMENT'S EXPLICIT RIGHT TO EQUAL PROTECTION INDEED JUDGE GINSBURG BUILT HER EARLIER CAREER AS A SCHOLAR AND LITIGATOR ON INNOVATIVE ARGUMENTS BASED ON THE EQUALPROTECTION PROVISION IT WAS HER MAIN WEAPON IN A LARGELY SUCCESSFUL CAMPAIGN IN THE 1970S TO PERSUADE THE SUPREME COURT TO STRIKE DOWN LAWS THAT DISCRIMINATE ON THE BASIS OF SEX IN JUDGE GINSBURG'S HANDS EQUAL PROTECTION CAN BE A POWERFUL CONCEPT SHE CONTENDS THAT DISFAVORING WOMEN BECAUSE OF PREGNANCY OR CHOICES ABOUT WHETHER TO BEAR CHILDREN IS A CLASSIC CASE OF SEX DISCRIMINATION A COURT FOLLOWING HER APPROACH WOULD OVERTURN PAST RULINGS THAT UPHELD BANS ON THE USE OF PUBLIC FUNDS TO PAY FOR POOR WOMEN'S ABORTIONS JUDGE GINSBURG HAS CRITICIZED THOSE RULINGS AND ATTRIBUTED THEM TO THE COURT'S FAILURE TO EMBRACE EQUALITY AS THE BASIS FOR THE ABORTION RIGHT EVEN IF THE ISSUE OF ABORTION FUNDING ISN'T REVISITED AS A MEMBER OF THE SUPREME COURT SHE WOULD ALMOST CERTAINLY HAVE A CHANCE TO ARGUE HER EQUALPROTECTION BRIEF WHEN THE JUSTICES CONSIDER CHALLENGES TO OTHER ABORTION RESTRICTIONS NOW IN THE LOWERCOURT PIPELINE THESE CASES CONCERN THE PRACTICAL IMPACT AS OPPOSED TO THEORETICAL PROPRIETY OF REGULATIONS SUCH AS MANDATORY WAITING PERIODS FOR WOMEN SEEKING ABORTIONS HER FORMULATION OF EQUAL PROTECTION COULD CHANGE THE TERMS OF DEBATE IN OTHER AREAS AS WELL IT'S POSSIBLE FOR INSTANCE THAT JUDGE GINSBURG WOULD DEPLOY THE PRINCIPLE TO URGE MODIFICATION OR REJECTION OF THE HIGH COURT'S 54 DECISION IN 1986 THAT UPHELD USE OF A STATE ANTISODOMY STATUTE TO TARGET CONSENSUAL HOMOSEXUAL ACTIVITY JUSTICE BYRON WHITE WHOM SHE WOULD SUCCEED WROTE THE MAJORITY'S OPINION IN THAT CASE JUDGE GINSBURG BELIEVES THE SUPREME COURT GENERALLY SHOULD REINFORCE NOT LEAD SOCIAL CHANGE BUT WHEN LAWMAKERS HAVE IGNORED THE RIGHTS OF WOMEN SHE HAS URGED THE NATION'S TOP COURT TO INTERVENE THIS WEEK'S HEARINGS COULD SHED LIGHT ON THE NOMINEE'S ENTHUSIASM FOR APPLYING HER UNDERSTANDING OF EQUALITY EMPLOYERS WHO REQUIRE THAT WORKERS SPEAK ONLY ENGLISH ON THE JOB DON'T NECESSARILY VIOLATE CIVIL RIGHTS LAW A FEDERAL APPEALS COURT SAID THE APPEALS COURT IN SAN FRANCISCO ALSO REJECTED US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION GUIDELINES THAT SAID COMPANIES COULDN'T IMPOSE SUCH RULES UNLESS THEY WERE NECESSARY FOR BUSINESS REASONS THE COURT SAID THAT SUCH RULES CAN'T BE PRESUMED TO BE DISCRIMINATORY INSTEAD WORKERS HAVE TO SHOW THAT THE POLICIES CONTRIBUTE TO DISCRIMINATION OR HARASSMENT IN THE WORKPLACE THE APPELLATE PANEL'S 21 DECISION REVERSED A LOWERCOURT RULING IN THE CASE WHICH WAS BROUGHT BY BILINGUAL HISPANIC WORKERS AGAINST SPUN STEAK CO A SAN FRANCISCO MEATPROCESSING COMPANY THE LOWER COURT FOUND THAT THE ENGLISHONLY RULE WAS ILLEGAL BECAUSE IT HAD A DISPARATE IMPACT ON HISPANIC WORKERS IF THIS DECISION WERE TO BE SUSTAINED IT WOULD MEAN THAT BILINGUAL EMPLOYEES WOULD HAVE LITTLE IF ANY RIGHTS TO USE THEIR NATIVE LANGUAGE IN THE WORKPLACE SAID EDWARD CHEN AN ATTORNEY WITH THE AMERICAN CIVIL LIBERTIES UNION IN SAN FRANCISCO WHO REPRESENTED THE WORKERS AN EMPLOYER WOULDN'T HAVE TO HAVE A LEGITIMATE REASON TO HAVE AN ENGLISHONLY RULE HE SAID THE ACLU MAY ASK THE APPEALS COURT TO RECONSIDER ITS DECISION THE COMPANY SAID IT ADOPTED THE RULE AFTER SOME NONSPANISHSPEAKING EMPLOYEES COMPLAINED BRIAN CARTER AN ATTORNEY FOR SPUN STEAK SAID THE DECISION WAS SIMILAR TO ONE BY THE FEDERAL APPEALS COURT IN NEW ORLEANS 1980 ATTORNEYS FOR THE EEOC COULDN'T BE REACHED TO COMMENT A FORMER MERRILL LYNCH & CO TRADINGDESK ANALYST AND A MERRILL CLIENT WENT ON TRIAL LAST WEEK ON CHARGES OF DEFRAUDING THE FIRM OF 1 MILLION IN TRADING PROFITS THE DEFENDANTS ARE TWO FORMER COLLEGE ROOMMATES EDWARD L SCHERER WHO JOINED MERRILL AFTER WORKING AS A MERGERSANDACQUISITIONS LAWYER AT SKADDEN ARPS SLATE MEAGHER & FLOM AND ELLIS J STRELITZ WHO WORKED IN THE CORPORATE BOND DEPARTMENT AT LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO BEFORE GOING TO WORK AT HIS FAMILY'S FURNITURE BUSINESS THE SCHEME ALLEGEDLY INVOLVED MR STRELITZ'S BUYING JUNK BONDS FROM MERRILL AT BELOWMARKET PRICES AND THEN RESELLING THEM TO MERRILL AT MARKET RATES A THIRD DEFENDANT FORMER MERRILL JUNKBOND TRADER RICHARD KURSMAN ALSO PARTICIPATED MR KURSMAN PLEADED GUILTY TO ONE COUNT OF WIRE FRAUD IN THE CASE AND AGREED TO TESTIFY AGAINST MESSRS STRELITZ AND SCHERER SCHERER AND KURSMAN WEREN'T TRYING TO MAKE MONEY FOR MERRILL LYNCH BUT FOR MR STRELITZ SAID SCOTT A EDELMAN AN ASSISTANT US ATTORNEY IN HIS OPENING STATEMENT IN FEDERAL COURT IN NEW YORK PROSECUTORS CLAIM MR STRELITZ AGREED TO KICK BACK MUCH OF THE PROFITS TO THE TWO MERRILL EMPLOYEES DAVID O'CONNOR MR SCHERER'S ATTORNEY AND JOHN WHING MR STRELITZ'S ATTORNEY SAID THE GOVERNMENT'S ENTIRE CASE RESTED ON THE TESTIMONY OF MR KURSMAN WHO THEY SAID ISN'T TO BE BELIEVED MR O'CONNOR SAID THE GOVERNMENT IS TRYING TO TURN A VIOLATION OF INTERNAL RULES RESTRICTING TRADING BY MERRILL EMPLOYEES INTO A CRIME KATIA HETTER AND JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9307190086 930719 TAIWAN OFFICIAL URGES LAWMAKERS TO BACK PASSENGER JET VENTURE SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN A SENIOR ECONOMIC OFFICIAL URGED LEGISLATORS TO SUPPORT THE GOVERNMENT'S PLAN TO FINANCE THE 500 MILLION JOINT VENTURE BETWEEN TAIWAN AEROSPACE CORP AND BRITISH AEROSPACE PLC TO PRODUCE PASSENGER JETS VICE ECONOMICS MINISTER YANG SHIHCHIEN TOLD THE LAWMAKERS FRIDAY THAT THE PROJECT WOULD OFFER TAIWAN A RARE OPPORTUNITY TO PRODUCE PASSENGER AIRCRAFT IN JANUARY BRITISH AEROSPACE SIGNED A CONTRACT WITH TAIWAN AEROSPACE OWNED 29 BY THE GOVERNMENT THAT REQUIRES EACH PARTNER TO INVEST 250 MILLION IN THE VENTURE THE VENTURE HAS BEEN STALLED FOR MONTHS BECAUSE ITS PARTNERS AND OTHER FINANCIERS ARE NOW QUESTIONING ITS FEASIBILITY MR YANG SAID THE CABINET'S APPROVAL OF THE VENTURE IS NEEDED BY THE END OF THIS MONTH TO MEET THE DEADLINE SET BY BRITISH AEROSPACE UNDER THE CONTRACT THE VENTURE KNOWN AS AVRO INTERNATIONAL AEROSPACE LTD WOULD TURN OUT 35 NEW RJ MODEL JETLINERS A YEAR THE FOURENGINE JET SEATING 75 TO 115 PASSENGERS WOULD BE ASSEMBLED IN TAIWAN AND AT BRITISH AEROSPACE'S WOODFORD PLANT MR YANG SAID THE TAIWAN GOVERNMENT PLANS TO PROVIDE LOWINTEREST LOANS TO HELP FINANCE ONETHIRD OF THE VENTURE'S 17 BILLION COST IN DEVELOPING A NEW JET MODEL A TAIWANESE BANKING CONSORTIUM LED BY THE GOVERNMENTRUN CHIAOTUNG BANK IS ALSO CONSIDERING A REQUEST TO PROVIDE 400 MILLION IN LOANS TO A LEASING COMPANY THAT WOULD BE SET UP TO HELP CUSTOMERS ACQUIRE THE VENTURE'S PLANES 9307190085 930719 TECHNOLOGY TANDY HALTS SHIPMENT TO RETAILER INTERTAN CITES ACCOUNTS PAYABLE FORT WORTH TEXAS TANDY CORP SAID IT HAS STOPPED MAKING SHIPMENTS TO INTERTAN INC BECAUSE THAT COMPANY IS IN DEFAULT ON 76 MILLION OF ACCOUNTS PAYABLE TO TANDY THE ELECTRONICS RETAILER SAID IT WILL MEET WITH INTERTAN AND INTERTAN'S LENDERS THURSDAY TO DISCUSS RESTRUCTURING 17 MILLION OF INTERTAN'S DEBT INTERTAN IS TANDY'S FORMER FOREIGN RETAIL OPERATIONS WHICH IT SPUN OFF TO STOCKHOLDERS IN 1987 IN FISCAL 1992 IT WAS TANDY'S BIGGEST CUSTOMER GENERATING SALES OF 1869 MILLION OR ABOUT 5 OF TANDY'S 393 BILLION IN SALES TANDY SAID IT HAS AN ADDITIONAL 44 MILLION OF OUTSTANDING PURCHASE ORDERS FROM INTERTAN THAT HAVEN'T BEEN SHIPPED UNDER THE SPINOFF AGREEMENTS TANDY IS INTERTAN'S PRIMARY SUPPLIER BUT INTERTAN BASED IN BARRIE ONTARIO HAS BEEN UNDER FINANCIAL PRESSURE LATELY THE COMPANY IS ALREADY IN DEFAULT UNDER AGREEMENTS WITH ITS BANK SYNDICATE KEITH WETLAUGHER THE COMPANY'S SENIOR VICE PRESIDENT OF FINANCE SAID INTERTAN EXPECTS TO REPORT A SUBSTANTIAL LOSS FOR THE FISCAL YEAR ENDED JUNE 30 AFTER TAKING A 70 MILLION TO 80 MILLION CHARGE FOR RESTRUCTURING IN MAY THE COMPANY SAID IT WOULD CLOSE 300 STORES IN CONTINENTAL EUROPE WHICH MR WETLAUGHER SAID HAD PERFORMED VERY POORLY THE COMPANY SAID OBTAINING FINANCING FOR ITS OPERATIONS AND RENEGOTIATING ITS AGREEMENTS WITH TANDY ARE ESSENTIAL IF THE COMPANY IS TO CONTINUE AS A VIABLE OPERATION WE NEED ACCESS TO FURTHER LINES OF CREDIT AND WE NEED TANDY AND THE SYNDICATE TO BE COOPERATIVE AND FLEXIBLE MR WETLAUGHER SAID 9307190084 930719 BUSINESS BRIEF BANCO POPULAR SPANISH CONCERN'S PROFIT ROSE 88 IN SIX MONTHS SPAIN'S BANCO POPULAR SAID ITS CONSOLIDATED NET PROFIT AFTER MINORITIES ROSE 88 IN THE FIRST SIX MONTHS OF 1993 TO 2770 BILLION PESETAS 205 MILLION FROM 2546 BILLION PESETAS A YEAR AGO INTEREST INCOME GREW 14 IN THE FIRST HALF TO 18096 BILLION PESETAS FROM 15856 BILLION IN THE FIRST SIX MONTHS OF 1992 BANCO POPULAR SAID INTEREST COSTS MEANWHILE SURGED 17 TO 9877 BILLION PESETAS IN THE FIRST SIX MONTHS FROM 8417 BILLION OPERATING REVENUE CLIMBED 12 TO 10449 BILLION PESETAS FROM 9351 BILLION A YEAR EARLIER 9307190083 930719 BUSINESS BRIEF GFC FINANCIAL CORP COMPANY SELLS VEREX UNIT TO GE'S CAPITAL MORTGAGE GFC FINANCIAL CORP SAID IT COMPLETED THE SALE OF ITS DISCONTINUED RESIDENTIAL MORTGAGE INSURANCE UNIT VEREX CORP TO GENERAL ELECTRIC CO'S MORTGAGE FINANCE UNIT GENERAL ELECTRIC CAPITAL MORTGAGE CORP TERMS HADN'T BEEN DISCLOSED PREVIOUSLY BUT IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE PHOENIX COMPANY SAID THE PRICE 215 MILLION INCLUDING ASSUMPTION OF 33 MILLION IN DEBT WAS BASED UPON THE BOOK VALUE OF VEREX'S ASSETS PLUS A 6 MILLION PREMIUM PLUS THE DIFFERENCE BETWEEN THE MARKET VALUE AND THE BOOK VALUE OF VEREX'S INVESTMENT PORTFOLIO GFC SAID THAT AFTER TRANSACTION COSTS IT BELIEVED PROCEEDS FROM THE SALE WOULD EXCEED GFC'S INVESTMENT IN VEREX VEREX HASN'T WRITTEN ANY NEW INSURANCE SINCE LATE 1987 AND WAS PART OF A DIAL CORP SPINOFF TO SHAREHOLDERS IN 1992 VEREX'S PORTFOLIO INCLUDES ABOUT 158 BILLION OF INSURANCE IN FORCE 9307190082 930719 US CONSIDERS TIGHTER CURBS ON AIRLINES BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL COMMISSION STUDYING THE AIRLINE INDUSTRY IS MOVING TOWARD RECOMMENDING TIGHTER GOVERNMENT REGULATION OF FINANCIALLY TROUBLED AIRLINES MEMBERS OF THE COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY ARE PURSUING THE ESTABLISHMENT OF AN INDEPENDENT AGENCY THAT WOULD REVIEW AIRLINES FOR WARNING SIGNS OF COLLAPSE PEOPLE CLOSE TO THE COMMISSION SAID AN INDEPENDENT AGENCY AMONG OTHER THINGS COULD BAR A STRUGGLING AIRLINE FROM LAUNCHING FARE WARS TO RAISE QUICK CASH PROPONENTS OF TIGHTER FINANCIAL REGULATION HOWEVER ARE LIKELY TO FACE HURDLES WITHIN THE PANEL BECAUSE SOME MEMBERS VIEW FINANCIALFITNESS REVIEWS AS A COSTLY AND UNNECESSARY LAYER OF REGULATION AFTER MONTHS OF HEARING TESTIMONY THE COMMISSION IS SCHEDULED TO MEET TODAY TO START PRODUCING ITS RECOMMENDATIONS MEMBERS WORKED IN PRIVATE THROUGH THE WEEKEND TO WRITE A DRAFT OF PROPOSALS PEOPLE FAMILIAR WITH THE DELIBERATIONS SAID THE PROPOSALS WOULD INCLUDE PRIVATIZING SOME FUNCTIONS OF THE FEDERAL AVIATION ADMINISTRATION EXEMPTING AIRLINES FROM ANY NEW FUEL TAX AND PERMITTING FOREIGN COMPANIES TO ACQUIRE AS MUCH AS 49 OF A US AIRLINE AS LONG AS THEIR GOVERNMENTS GIVE US CARRIERS MORE LANDING RIGHTS CURRENTLY FEDERAL LAW RESTRICTS FOREIGN OWNERSHIP TO 25 FOR VOTING CONTROL AND 49 FOR EQUITY A SPOKESMAN FOR THE COMMISSION DECLINED TO COMMENT YESTERDAY CONGRESS AND THE CLINTON ADMINISTRATION NAMED THE 15MEMBER COMMISSION EARLIER THIS YEAR IN REACTION TO WORSENING AIRLINEINDUSTRY LOSSES IT IS DOUBTFUL HOWEVER THAT MANY OF THE COMMISSION'S PROPOSALS WOULD SPUR QUICK LEGISLATIVE ACTION FOR ONE THING THE COMMISSION'S FINAL REPORT ISN'T DUE UNTIL AUG 20 TOO LATE TO INFLUENCE CURRENT BUDGET DELIBERATIONS IN ADDITION THE AIRLINE INDUSTRY ITSELF IS SPLIT ON MANY ISSUES THE COMMISSION FOR EXAMPLE APPARENTLY HAS DITCHED A PROPOSAL GIVING AIRLINES GOVERNMENTGUARANTEED LOANS TO UPGRADE THEIR FLEET WITH QUIETER PLANES SOME AIRLINES ARE WORRIED THAT SUCH SUBSIDIES MIGHT LOWER THE VALUE OF THEIR EXISTING FLEETS THE GOVERNMENT'S TREATMENT OF WEAKER CARRIERS HAS ALSO BEEN A TRICKY ISSUE AMR CORP'S AMERICAN AIRLINES HAS ASSERTED THAT WEAK CARRIERS HAVE USED CHAPTER 11 BANKRUPTCYCOURT PROTECTION TO LAUNCH PRICECUTTING ATTACKS THAT WEAKEN THE WHOLE INDUSTRY BUT COMMISSION MEMBERS HAVE BEEN WARY OF TRYING TO PROPOSE SWEEPING REFORM OF BANKRUPTCY LAWS IN SOME CASES CARRIERS SUCH AS NOWDEFUNCT EASTERN AIRLINES HAVE LAUNCHED DAMAGING FARE WARS BEFORE SEEKING PROTECTION UNDER CHAPTER 11 FELIX G ROHATYN A COMMISSION MEMBER AND SENIOR PARTNER OF THE INVESTMENTBANKING FIRM LAZARD FRERES & CO HAS PUSHED FINANCIALFITNESS REVIEWS AS A BUFFER BEFORE BANKRUPTCY PROCEEDINGS THE TRANSPORTATION DEPARTMENT HAS PERFORMED SIMILAR REVIEWS IN THE PAST BUT FOCUSED ON WHETHER A CARRIER'S FINANCIAL STRENGTH WAS HURTING ITS OWN SAFETY RECORD AND THE DEPARTMENT HAS BEEN CRITICIZED FOR NOT BEARING DOWN HARDER ON EASTERN BEFORE THE AIRLINE'S DEMISE HERBERT D KELLEHER WHO AS CHAIRMAN OF SOUTHWEST AIRLINES IS THE ONLY PASSENGERAIRLINE REPRESENTATIVE ON THE COMMISSION HAS EXPRESSED DOUBTS ABOUT TOUGHER FINANCIAL REVIEWS HE TOLD FELLOW MEMBERS THAT SOUTHWEST WOULD HAVE BEEN DECLARED UNFIT AND TECHNICALLY BANKRUPT IF FINANCIALFITNESS STANDARDS WERE IN PLACE IN 1971 OR 1972 IT IS NOW THE INDUSTRY'S ONLY PROFITABLE BIG PLAYER AND SOME GOVERNMENT OFFICIALS CONTEND TIGHTER FINANCIAL REVIEWS COULD CONFLICT WITH THE CLINTON ADMINISTRATION'S DESIRE TO HAVE AS MANY AIRLINES OPERATING AS POSSIBLE STILL TRANSPORTATION SECRETARY FEDERICO PENA WHEN ASKED LAST WEEK ABOUT A POSSIBLE FINANCIALREVIEW PROPOSAL SAID WE'RE OPEN TO CREATIVE IDEAS 9307190081 930719 OLYMPIA & YORK UNIT REQUESTS NEW TERMS ON BUILDING'S BONDS NEW YORK OLYMPIA & YORK COS USA SAID IT WON'T BE ABLE TO COME UP WITH ADDITIONAL COLLATERAL FOR 200 MILLION OF BONDS THAT ARE SECURED BY A NEW YORK OFFICE TOWER INSTEAD THE COMPANY ASKED THE BONDHOLDERS TO EXTEND THE MATURITY DATE ON THE NOTES THE 10 3/8 BONDS WHICH MATURE IN 1995 ARE SECURED BY O&Y USA'S PROPERTY AT 59 MAIDEN LANE IN LOWER MANHATTAN ALTHOUGH O&Y USA HAS MISSED PAYMENTS ON OTHER DEBTS IT IS CURRENT IN ITS INTEREST PAYMENTS ON THE MAIDEN LANE BONDS HOWEVER O&Y USA SAID IT WILL BE REQUIRED BY THE END OF THIS YEAR TO POST COLLATERAL FOR THE BONDS OF 240 MILLION IN LIQUID SECURITIES WHICH THE COMPANY SAID IT WON'T BE ABLE TO DO O&Y USA IS A SUBSIDIARY OF OLYMPIA & YORK DEVELOPMENTS LTD OF TORONTO WHICH RESTRUCTURED ITS DEBT UNDER CANADIAN BANKRUPTCYCOURT PROTECTION THIS YEAR HOLDERS OF THE MAIDEN LANE BONDS PLAN TO FORM A BONDHOLDERS COMMITTEE THIS WEEK TO WILL NEGOTIATE NEW LOAN TERMS WITH THE COMPANY ONE BONDHOLDER SAID BESIDES A LONGER MATURITY DATE O&Y USA SAID IT WANTS A LOWER RATE OF INTEREST ON THE BONDS AND AN ALLOWANCE SET ASIDE FROM THE BUILDING'S CASH FLOW TO COVER FUTURE LEASEUP COSTS THE ONEMILLIONSQUAREFOOT TOWER WHICH IS 89 OCCUPIED HAS AS ITS MAIN TENANT INSURANCE CONCERN HOME GROUP INC WHOSE LEASE EXPIRES IN 1999 THE MAIDEN LANE DEBT IS HELD BY OLYMPIA & YORK MAIDEN LANE FINANCE CORP A UNIT OF O&Y USA WHICH IS ATTEMPTING TO RESTRUCTURE A TOTAL OF 53 BILLION OF DEBT 9307190080 930719 BUSINESS BRIEFS NEWS CORP SYDNEY AUSTRALIA ACQUIRED AXXIS SOFTWARE INC A SOFTWARE APPLICATIONS PRODUCER OF GEOGRAPHIC INFORMATION FIRST FEDERAL SAVINGS BANK OF DOVER OHIO OPTED TO ALLOW TO EXPIRE A LETTER OF INTENT TO ACQUIRE FIRSTFEDERAL FINANCIAL SERVICES CORP WOOSTER OHIO NO EXPLANATION WAS GIVEN AMERICAN EXPRESS TRAVEL RELATED SERVICES CO A UNIT OF AMERICAN EXPRESS CO ACQUIRED A SUBSTANTIAL PART OF THE BUSINESSTRAVEL OPERATIONS OF KONTIKFRANSTUR ONE OF BRAZIL'S LARGEST TRAVEL AGENCIES TERMS WEREN'T DISCLOSED KEYCORP ALBANY NY EXTENDED TO AUG 5 ITS OFFER TO ACQUIRE EVERGREEN BANCORP GLEN FALLS NY WHICH HASN'T RESPONDED TO THE OFFER STANDARD FEDERAL BANK TROY MICH AGREED TO ACQUIRE INTERFIRST BANKCORP ANN ARBOR MICH IN A DEAL VALUED AT 312 MILLION USAHA TEGAS A MALAYSIAN CLOSELY HELD INVESTMENT FIRM SAID A SUBSIDIARY VOIT ACQUISITION CORP BEGAN ITS TENDER OFFER FOR VOIT CORP'S 35 MILLION SHARES OUTSTANDING AT 450 EACH VOIT CORP IS BASED IN FAIRPORT NY THE OFFER EXPIRES AUG 12 PROVIDENT BANK A UNIT OF PROVIDENT BANCORP CINCINNATI ACQUIRED AN OPTION TO BUY INTO THE JEANIE AUTOMATICTELLER NETWORK OF MIDWEST PAYMENT SYSTEMS A UNIT OF CINCINNATIBASED FIFTH THIRD BANCORP TERMS WEREN'T DISCLOSED 9307190079 930719 INTERNATIONAL TOP KIRIN BREWERY EXECUTIVES TO RESIGN AMID REPORTS OF PAYING OFF RACKETEERS BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE CHAIRMAN AND TWO OTHER TOP EXECUTIVES OF KIRIN BREWERY CO JAPAN'S LARGEST BEER MAKER SAID THEY WILL RESIGN FOLLOWING REPORTS THAT THE COMPANY PAID LARGE SUMS OF MONEY TO RACKETEERS KIRIN SAID HIDEYO MOTOYAMA ITS 67YEAROLD CHAIRMAN WILL RESIGN AT THE END OF THIS MONTH TERUCHIKA ISHII A KIRIN VICE PRESIDENT AND TAKAHIRO SANTO AN EXECUTIVE DIRECTOR WILL ALSO STEP DOWN JAPANESE PRESS REPORTS SAID THAT FOUR LOWERLEVEL KIRIN EXECUTIVES WERE CHARGED LAST WEEK WITH ALLEGEDLY PAYING EXTORTIONISTS CALLED SOKAIYA A TOTAL OF 33 MILLION YEN 304557 THIS YEAR TO ENSURE THAT THE RACKETEERS WOULDN'T DISRUPT KIRIN'S ANNUAL STOCKHOLDERS' MEETING KIRIN ALLEGEDLY MADE SUCH PAYMENTS FOR THE PAST 10 YEARS THE REPORTS SAID EIGHT ALLEGED RACKETEERS WERE ALSO ARRESTED A KIRIN SPOKESMAN CONFIRMED THAT THE FOUR EXECUTIVES WERE ARRESTED ON SUSPICION OF VIOLATING JAPAN'S COMMERCIAL LAW WHICH PROHIBITS PAYOFFS TO SOKAIYA KIRIN AND JAPANESE PROSECUTORS REFUSED TO CONFIRM THE DETAILS OF THE ALLEGATIONS THE KIRIN SCANDAL IS THE LATEST EVIDENCE OF THE TIES BETWEEN JAPAN'S UNDERWORLD AND SOME OF THE NATION'S MOST PRESTIGIOUS CORPORATIONS LAST YEAR THE PRESIDENT OF RETAILING GIANT ITOYOKADO CO RESIGNED AFTER COMPANY EXECUTIVES PAID MONEY TO SOKAIYA ITOYOKADO OWNS JAPAN'S 7ELEVEN CHAIN OF CONVENIENCE STORES AND A MAJORITY STAKE IN DALLASBASED SOUTHLAND CORP THE US 7ELEVEN OPERATOR SOKAIYA THE WORD MEANS GENERALMEETING SPECIALIST MAKE MONEY IN TWO MAJOR WAYS THE FIRST AS APPARENTLY HAPPENED IN KIRIN'S CASE IS TO EXTORT MONEY FROM COMPANIES BY THREATENING TO ASK EMBARRASSING DISRUPTIVE QUESTIONS AT THEIR GENERAL MEETINGS THE SECOND IS TO INTIMIDATE LEGITIMATE SHAREHOLDERS FROM ASKING TOUGH QUESTIONS IN EXCHANGE FOR PAYMENT FROM THE COMPANY THE SOKAIYA ARE ABLE TO MAKE A LIVING BECAUSE JAPANESE COMPANIES PUT A PREMIUM ON HARMONY ESPECIALLY AT PUBLIC GATHERINGS LIKE SHAREHOLDER MEETINGS THE PROFORMA MEETINGS GENERALLY LAST NO MORE THAN 30 MINUTES JAPANESE FIRMS HAVE BEEN TRYING TO PREVENT SOKAIYA EXTORTION BY HOLDING THEIR ANNUAL MEETINGS ON THE SAME DAY DOING SO LIMITS THE NUMBER OF MEETINGS EACH SOKAIYA CAN TARGET BUT IT'S WIDELY BELIEVED THAT MANY LARGE COMPANIES CONTINUE TO PAY OFF THE RACKETEERS KIRIN DENIED THAT ITS TOP EXECUTIVES WERE AWARE OF THE ALLEGED PAYMENTS TO SOKAIYA TYPICAL OF JAPANESE COMPANIES TOUCHED BY SCANDAL IT SAID THE RESIGNATIONS WERE BY WAY OF ATONEMENT FOR THE INCONVENIENCE THE SCANDAL HAS CAUSED THE PUBLIC THE COMPANY ALSO PULLED ITS PRINT AND TELEVISION BEER ADVERTISING AND TOOK ITS NAME OFF CONCERTS AND EVENTS THAT THE COMPANY WAS SPONSORING A SPOKESMAN SAID THE SCANDAL IS A BIG BLOW TO KIRIN WHICH WAS COUNTING ON JAPAN'S SUMMER GIFTGIVING SEASON TO BOOST ITS SAGGING BEER SALES NOW THE SCANDALTAINTED COMPANY IS LIKELY TO DO WORSE NOT BETTER BECAUSE A LARGE PORTION OF SUMMER GIFTS ARE EXCHANGED BY IMAGECONSCIOUS BUSINESSES IN THE SIX MONTHS ENDED JUNE 30 KIRIN'S BEER SHIPMENTS DROPPED 14 TO 126 MILLION CASES FROM THE YEAREARLIER PERIOD THE FIRST DROP SINCE 1988 THE SPOKESMAN SAID 9307190077 930719 DISABILITIES ACT HELPS BUT NOT MUCH LAW DOES HELP SOME MANAGERS TO MOVE AHEAD BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL IN PORTLAND ORE A FIRST INTERSTATE BANK OF OREGON LENDING OFFICER WHO USES A WHEELCHAIR IS OFFERED A PROMOTION AT THE BANK'S BRANCH IN CALDWELL IDAHO THE BANK SPENDS 15000 REVAMPING A RESTROOM SO HE CAN TAKE THE TRANSFER IN HARTFORD CONN A DEAF SUPERVISOR AT AETNA LIFE & CASUALTY CO TAKES SIX DAYS OF SUPERVISORY TRAINING TO HELP HER SEEK A HIGHERLEVEL JOB TWO ORAL INTERPRETERS WHO COST AETNA ABOUT 2500 ENABLE HER TO COMPREHEND THE INSTRUCTION IN CHICAGO A JURY FINDS THAT A SECURITYGUARD COMPANY UNFAIRLY DISMISSED A TOP EXECUTIVE WHOSE TERMINAL BRAIN CANCER FORCED HIM TO MISS WORK FOR TREATMENT THE AMERICANS WITH DISABILITIES ACT IS STARTING TO TACKLE SOME TOUGH BARRIERS FOR DISABLED MANAGERS SUCH MANAGERS COMMONLY FACE SOME OF THE MOST STUBBORN DISCRIMINATION MANY EXECUTIVES WHO ARE WILLING TO HIRE DISABLED WORKERS FOR A DISTANT PLANT DON'T REALLY WANT THEM IN THE NEXT OFFICE AND BELIEVE THAT THEY CAN'T POSSIBLY HANDLE MANAGERIAL TASKS WHILE THE LAW HAS YET TO OPEN UP MANY NEW JOBS FOR DISABLED MANAGERS IT IS IMPROVING CERTAIN MANAGERS' CHANCES OF MOVING AHEAD DESPITE AN EXISTING DISABILITY OTHERS NOW FIND LESS EMPLOYER RESISTANCE WHEN THEY WANT TO RESUME WORK AFTER DEVELOPING A DISABLING INJURY OR ILLNESS AND A FEW MAJOR CONCERNS INCLUDING SOUTHWESTERN BELL CORP AND SEARS ROEBUCK & CO HAVE BEGUN TO RECRUIT DISABLED COLLEGE GRADUATES FOR ENTRYLEVEL MANAGEMENTTRAINING PROGRAMS THE STEREOTYPICAL PREJUDICE THAT A DISABLED MANAGER COULDN'T ASSERT AUTHORITY OR DO THE JOB HAS BEEN OUTWEIGHED BY THE FEAR OF LAWSUITS UNDER THE NEW LAW SAYS GARY MARX A WASHINGTON LAWYER AT THE SAME TIME HIGHTECHNOLOGY ADVANCES HAVE MADE IT EASIER FOR DISABLED INDIVIDUALS TO HANDLE MANAGERIAL DUTIES MOUTHPICKS LET QUADRIPLEGICS OPERATE COMPUTERS FOR INSTANCE AND SOFTWARE CAN CONVERT TEXT TO SPEECH FOR THE BLIND AND SPEECH TO TEXT FOR THE DEAF THANKS TO THE ACT AND HIGHTECH EQUIPMENT CHRISTOPHER BELL IS SOON EXPECTED TO BECOME THE FIRST DISABLED PARTNER AT JACKSON LEWIS SCHNITZLER & KRUPMAN SAYS WILLIAM KRUPMAN A PARTNER AT THE BIG MANAGEMENT LAW FIRM IN NEW YORK MR BELL WHO IS BLIND CAME TO THE FIRM LAST DECEMBER FROM THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WHERE HE HELPED DRAFT AGENCY GUIDELINES BASED ON THE ACT HE HAS ATTRACTED CONSIDERABLE BUSINESS RELATED TO THE ACT BECAUSE HE OFFERS EXPERTISE THAT NO ONE ELSE CAN PROVIDE MR KRUPMAN BOASTS WITH HIS ARRAY OF HIGHTECH DEVICES MR BELL IS MORE PRODUCTIVE THAN ANY ATTORNEY WE HAVE MR KRUPMAN ADDS INDIVIDUALS WITH DISABILITIES ARE MOVING INTO MANAGEMENT ELSEWHERE TOO UNUM CORP SAYS THAT THREE DISABLED EMPLOYEES HAVE ADVANCED INTO ITS MANAGERIAL RANKS DURING THE PAST YEAR THERE ARE NOW NINE DISABLED MANAGERS AMONG 558 MANAGEMENT PEOPLE AT THE SPECIALIZED INSURER'S HEADQUARTERS IN PORTLAND MAINE THE ACT'S MOST SIGNIFICANT BENEFIT FOR MANAGERS MAY LIE IN THE WAY BUSINESSES TREAT THEM AFTER A DISABLING INJURY OR ILLNESS IN THE PAST SUCH EXECUTIVES OFTEN FOUND THEMSELVES FIRED OR FORCED TO RETIRE TODAY MORE EMPLOYERS ARE LOOKING FOR WAYS TO RETAIN MANAGERS WHEN THEY BECOME DISABLED SAYS RICK DOUGLAS EXECUTIVE DIRECTOR OF THE PRESIDENT'S COMMITTEE ON EMPLOYMENT OF PEOPLE WITH DISABILITIES A PUBLICPRIVATE PARTNERSHIP BUT DISABLED MANAGERS STILL FACE PLENTY OF OBSTACLES AT ONE LARGE MANUFACTURER AN ENGINEERING VICE PRESIDENT UNDERWENT TREATMENT FOR MANIC DEPRESSION JUST WHEN THE COMPANY PRESIDENT NEEDED HIM TO WORK EXTRA HOURS MICHAEL SOLTIS A JACKSON LEWIS PARTNER SAYS HE PERSUADED THE PRESIDENT TO GIVE THE MAN A LITTLE BIT MORE TIME OFF RATHER THAN DISMISS HIM IN OTHER SITUATIONS COURT RULINGS MAY BE THE PERSUADER EXPERTS SAY THE RECENT DECISION INVOLVING THE CHICAGO COMPANY WILL PROMPT OTHER BUSINESSES TO GIVE EXTENDED LEAVES OR ALLOW FLEXIBLE WORK HOURS WHEN MANAGERS FALL SERIOUSLY ILL A FEW SIMILAR SUITS ARE PENDING IN THE CHICAGO CASE THE FIRST JOBBIAS CASE TO GO TO TRIAL UNDER THE DISABILITIES ACT A FEDERAL JURY AWARDED 59YEAROLD CHARLES H WESSEL DAMAGES OF 572000 THE EEOC HAD ARGUED THAT CLOSELY HELD AIC SECURITY INVESTIGATIONS LTD FIRED MR WESSEL AS EXECUTIVE DIRECTOR LAST JULY BECAUSE OF STEREOTYPICAL FEARS ABOUT HIS CANCER AND WITHOUT WARNING HIM THAT HIS TREATMENTRELATED ABSENCES HAD HARMED HIS PERFORMANCE AIC CONTENDED THAT MR WESSEL'S FULLTIME ATTENDANCE WAS AN ESSENTIAL PART OF HIS JOB LAST MONTH A JUDGE REDUCED THE MARCH JURY AWARD TO 222000 AIC IS SEEKING A RETRIAL DESPITE MODEST GAINS ARISING FROM THE ACT AND RELATED SUITS DISABLED MANAGERS FIND THAT MYTHS ABOUT THEIR CAPABILITIES STILL HANDICAP THEIR UPWARD MOBILITY THAT HAS LONG BEEN TRUE EVEN AMONG ADVOCACY GROUPS MR DOUGLAS FOR EXAMPLE IS THE FIRST DIRECTOR WITH A DISABILITY AT THE PRESIDENT'S COMMITTEE I HAD TO BE TWICE AS GOOD AS MY PREDECESSOR TO GET HIRED IN 1991 RECALLS MR DOUGLAS WHO HAS MULTIPLE SCLEROSIS PREJUDICE HAS KEPT GENERATIONS OF DISABLED AMERICANS IN INSTITUTIONS AND IN BACK ROOMS HE CONTINUES BUT WE ARE IN A PERIOD OF MASSIVE CHANGE IT'S JUST NOT GOING TO HAPPEN OVERNIGHT SEE RELATED STORY WORKPLACE DISABLED PEOPLE AREN'T GETTING MORE JOB OFFERS WSJ JULY 19 1993 9307190076 930719 MARKETING & MEDIA ADVERTISING MANDELBAUM MOONEY TO LAUNCH ARROW TOWARD YOUNGER TARGETS BY KEVIN GOLDMAN AFTER A LONG HIATUS FROM ADVERTISING IN WHICH ITS ONCE DOMINANT SHARE WAS ERODED BY COMPETITORS ARROW SHIRTS SELECTED A LITTLEKNOWN AD AGENCY IN A NEW ATTEMPT TO SHED ITS BUTTONEDDOWN IMAGE AND APPEAL TO YOUNGER CONSUMERS ARROW A UNIT OF BIDERMANN SA TAPPED SAN FRANCISCO SHOP MANDELBAUM MOONEY ASHLEY AN 18PERSON AGENCY WITH BILLINGS LAST YEAR OF ONLY 30 MILLION THE MOVE IS A BIG DEPARTURE FOR ARROW WHICH IN THE PAST HAS USED AMMIRATI & PURIS WITH ABOUT 300 EMPLOYEES AND ANNUAL BILLINGS OF APPROXIMATELY 400 MILLION AND CHIAT/DAY WITH ABOUT 1000 EMPLOYEES AND OVER 900 MILLION IN ANNUAL BILLINGS MANDELBAUM MOONEY WHICH OPENED ITS DOORS ONLY FIVE YEARS AGO HAS LITTLE EXPERIENCE WITH NATIONAL CAMPAIGNS HOWEVER IT WAS FOUNDED BY TWO AD AGENCY VETERANS KEN MANDELBAUM THE 30YEAROLD CHIEF EXECUTIVE OFFICER AND CATHI MOONEY THE 33YEAROLD CHAIRWOMAN OF THE BOARD AND CREATIVE DIRECTOR THE DUO MET WHEN THEY WORKED AT ALLY & GARGANO IN NEW YORK 11 YEARS AGO THEN MOVED TO HAL RINEY & PARTNERS BEFORE LEAVING TO FORM THEIR OWN AGENCY ONE OF THE AGENCY'S FIRST CLIENTS WAS APPAREL MAKER BUGLE BOY INDUSTRIES WHICH IT PITCHED TO YUPPIE MEN WHO WERE DYING TO SLIP INTO COMFORTABLE THREADS AFTER BEING COOPED UP IN A BUSINESS SUIT ALL DAY THE ADS NEVER USED MODELS INSTEAD ONE AD SHOWED A STYLISH PHOTOGRAPH OF SHIRTS PANTS AND A CASUAL JACKET WITH THE HEADLINE OUR IDEA OF THE PERFECT BUSINESS SUIT ANOTHER AD SHOWED A PAIR OF PANTS AND A CASUAL TOP WITH THE HEADLINE WHAT THE LEISURE SUIT SHOULD HAVE BEEN THAT CAMPAIGN APPARENTLY IMPRESSED ARROW WHICH IS ALSO TRYING TO APPEAL TO THE YOUNGER MARKET OF 25 TO 35 YEAR OLDS MICHEL ZELNIK PRESIDENT OF BIDERMANN SAYS THE COMPANY WILL SPEND UPWARD OF 10 MILLION ON TELEVISION AND PRINT ADVERTISING WITHIN THE NEXT 18 MONTHS MR ZELNIK SAYS HE PUT AN END TO ALL ARROW ADVERTISING UNTIL THE COMPANY COMPLETES ITS AGGRESSIVE DEVELOPMENT OF NEW PRODUCT INCLUDING A LINE OF SPORTSWEAR AND MORE COLORFUL DRESS SHIRTS HE EXPECTS TO BEGIN ADVERTISING BY THE BEGINNING OF NEXT YEAR THAT IS QUITE A JUMP IN AD SPENDING FOR THE COMPANY THAT MADE ITS REPUTATION CATERING TO THOSE WHO FEEL AT HOME WEARING WHITE SHIRTS ACCORDING TO ONE MADISON AVENUE INDUSTRY EXECUTIVE ARROW SPENT LESS THAN 500000 ON ADS A YEAR OR SO AGO THEN THE CHEEKY TELEVISION SPOTS FROM AMMIRATI & PURIS FEATURED AN ANNOUNCER WHO SAID BEFORE POODLE PSYCHOLOGY BEFORE BLUEBERRY LOW FAT YOGURT A MAN WAS A MAN AND AN ARROW WAS AN ARROW THAT REINFORCED ARROW AS A TRIEDANDTRUE BRAND BUT DIDN'T PARTICULARLY APPEAL TO YOUNG CUSTOMERS THE MOST RECENT AMMIRATI SLOGAN WAS THE LESS THAN INSPIRED AMERICA'S SHIRT MAKERS SINCE 1851 AMMIRATI SAYS IT RESIGNED THE ACCOUNT BECAUSE IT BECAME TOO INSIGNIFICANT THERE IS NO NEW SLOGAN YET AND MANDELBAUM MOONEY IS JUST BEGINNING TO WORK ON THE ACTUAL CAMPAIGN ARROW IS FACING THE SAME DILEMMA CONFRONTING MANY BRANDS THAT ESTABLISHED THEIR REPUTATIONS LONG AGO AND NEED TO MAKE A GENERATIONAL TRANSITION BUT COMING UP WITH THE RIGHT CAMPAIGN TO DO THAT IS A TOUGH CHALLENGE FOR EXAMPLE GENERAL MOTORS' OLDSMOBILE LINE THOUGHT IT SOLVED THE PROBLEM BY TRUMPETING IN ADS THAT THIS IS NOT YOUR FATHER'S OLDSMOBILE THE SLOGAN FELL OUT OF USE AFTER IT FAILED TO NUDGE SALES ARROW HAS NO CHOICE BUT TO EXPAND ITS BUSINESS BASE SAY MARKETING EXPERTS ALL THE MAGAZINES ARROW USED TO ADVERTISE IN LIKE COLLIER'S AND LOOK ARE OUT OF BUSINESS AND MOST OF THEIR TRADITIONAL CUSTOMERS ARE RESTING IN PEACE SAYS ALAN MILLSTEIN PUBLISHER OF FASHION NETWORK REPORT ARROW GOT LOCKED INTO THE NICHE AS A WHITE OR PINK DRESS SHIRT COMPANY THE DRESS SHIRT CATEGORY IS STILL GROWING AT A HEALTHY CLIP ACCORDING TO THE MOST RECENT AVAILABLE FIGURES FROM MR MILLSTEIN THE CATEGORY GREW 12 LAST YEAR TO 28 BILLION FROM 25 BILLION IN 1991 BUT LAST YEAR WITH A 92 SHARE OF THE MARKET ARROW LAGGED BEHIND RIVAL VAN HEUSEN WITH 99 OF THE MARKET ARROW ALSO FACES STIFF COMPETITION FROM CHEAPER PRIVATE BRAND LABELS AS WELL AS FROM ESTABLISHED BRANDS SUCH AS HATHAWAY ARROW HAS AN INTERESTING DILEMMA SAYS MR MANDELBAUM IT IS THE ESTABLISHED WHITE SHIRT COMPANY BUT IT IS VIRTUALLY UNKNOWN FOR ANYTHING ELSE THE PERCEPTION IS THAT ARROW ISN'T A FASHION BRAND WHEN IT COMES TO ARROW SHIRTS MR MANDELBAUM SAYS RESEARCH SHOWS THAT THE YOUNGER GENERATION BARELY HAS A PERCEPTION OF THE PRODUCT AND HE SAYS THE PERCEPTION IT DOES HAVE IS INCORRECT WE HAVE TO SHAKE LOOSE THE OLD FOGEY IMAGE HE SAYS MR MILLSTEIN OF FASHION NETWORK REPORT SAYS IT'S A GOOD THING ARROW IS SPREADING ITS MARKETING WINGS RIGHT NOW THEY ARE FEEDING INTO A STAGNANT AND INCREASINGLY COMPETITIVE MARKET HE SAYS THEY HAVE TO MOVE AGGRESSIVELY FURNITURE RETAILER IKEA AVENSKA AG SAID IT HAS CONSOLIDATED ALL OF ITS US ADVERTISING WITH NEW YORK AGENCY DEUTSCH/DWORIN THE AGENCY SAID IT WOULD OPEN UP A LOS ANGELES OFFICE TO SERVICE THE WEST COAST PORTION OF THE ACCOUNT IKEA'S TOTAL US BILLINGS ARE 25 MILLION TO 30 MILLION EXECUTIVES SAID THE IKEA WEST OPERATIONS HAD BILLED AN ESTIMATED 10 MILLION TO 12 MILLION WITH THE LOS ANGELES SHOP STEIN ROBAIRE HELM DEUTSCH/DWORIN HAS CREATED COMMERCIALS FOR THE IKEA EAST CHAIN INCLUDING INTERVIEWS WITH REAL PEOPLE IN IKEA STORES STEVE DWORIN SAID THE AGENCY PLANS TO OPEN A WEST COAST OFFICE OF CREATIVE ACCOUNT AND MEDIA STAFF LATER IN THE FALL HE SAID WE'LL LOOK FOR A HEAVYWEIGHT TO RUN IT 9307190074 930719 ENTERPRISE BANK REGULATORS TO EXPAND ACCESS TO CHARACTER' LOANS SBA CHIEF SAYS EFFORT TO INCREASE CREDIT TO SMALL BUSINESSES WILL BE WIDENED BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WEST HARTFORD CONN BANK REGULATORS ARE ABOUT TO EXPAND AN INITIATIVE DESIGNED TO INCREASE CREDIT TO SMALL BUSINESSES ERSKINE BOWLES HEAD OF THE SMALL BUSINESS ADMINISTRATION TOLD A GROUP OF BUSINESS OWNERS HERE LAST MARCH FOUR BANKING AGENCIES AGREED TO ALLOW SOME MAJOR HEALTHY BANKS TO MAKE CERTAIN SMALL BUSINESS LOANS BASED MORE ON A BORROWER'S PROVEN RECORD OF DEBT REPAYMENT OVER TIME WITHOUT THE USUAL EXTENSIVE DOCUMENTATION REQUIREMENTS THE NEW CHARACTER LOAN PROGRAM WAS PART OF PRESIDENT CLINTON'S EFFORT TO SPUR LENDING TO SMALL BUSINESSES NOW THE COMPTROLLER OF THE CURRENCY WHICH REGULATES ABOUT 3600 NATIONAL BANKS IS PREPARING TO EXPAND ACCESS TO THE CHARACTER LOAN PROGRAM TO LESSER CAPITALIZED BANKS DETAILS WILL BE ANNOUNCED IN ABOUT TWO WEEKS COMPTROLLER EUGENE LUDWIG IS ACTING AT THE REQUEST OF THE NEW ENGLAND CONGRESSIONAL DELEGATION SO FAR ONLY THE COMPTROLLER APPEARS READY TO CONSIDER WIDENING THE PROGRAM OTHER REGULATORS COULD ACT LATER MR BOWLES DISCLOSED THE EXPANSION AT HIS FIRST TOWN MEETING WITH ABOUT 300 SMALL BUSINESS PEOPLE AT A TOWN HALL HERE LAST WEEK THE NEW SBA CHIEF TAKING A PAGE FROM PRESIDENT CLINTON'S PLAYBOOK PLANS A SERIES OF SUCH GATHERINGS AROUND THE COUNTRY TO KEEP IN TOUCH WITH SMALL BUSINESS AT THE GRASS ROOTS AND BOOST THE CLINTON ADMINISTRATION'S STANDING WITH AN IMPORTANT VOTING BLOC THE FORMER NORTH CAROLINA INVESTMENT BANKER IMMEDIATELY GAINED RAPPORT WITH HIS BUSINESS AUDIENCE BY NOTING WITH A CHUCKLE THAT HE MADE ONLY 5000 HIS FIRST YEAR IN BUSINESS THAT'S REVENUES NOT PROFITS SOMETIMES THEY FORGET ABOUT THE DIFFERENCE IN WASHINGTON HE SAID GETTING A BIG LAUGH MEMBERS OF THE CAPACITY CROWD RAISED A HOST OF SMALLBUSINESS CONCERNS BUT SURPRISINGLY THERE WAS ONLY A BRIEF REFERENCE TO THE CONGRESSIONAL TAX BILL NEGOTIATIONS SEVERAL OWNERS COMPLAINED THAT THEY STILL CAN'T GET LOANS MR BOWLES CONCEDED THAT THE ADMINISTRATION'S EFFORTS LAST SPRING TO EASE THE CREDIT CRUNCH BY LOOSENING BANK RULES HASN'T HAD GREAT IMPACT BUT HE EXPRESSED OPTIMISM ABOUT THE NEW CHARACTER LOAN PLAN NEW ENGLANDERS HAVE ARGUED THAT SOME BANKS IN THAT ECONOMICALLY DEPRESSED AREA DIDN'T YET QUALIFY FOR THE EXPANDED LENDING PROGRAM BEGUN LAST MARCH EVEN THOUGH THEY WERE CLOSE TO ACHIEVING THE REQUIRED CAPITAL THE COMPTROLLER OF THE CURRENCY HAS AGREED TO STRETCH THE PROGRAM TO INCLUDE THESE SOCALLED THIRD TIER BANKS ON A CASEBYCASE BASIS HEALTHCARE REFORM WAS ANOTHER HOT TOPIC WE'VE BEEN WAITING FOR SOME RELIEF BUT NOT ONLY WON'T SMALL BUSINESS GET A BREAK ON HEALTH CARE WE'RE GOING TO BE HIT WITH HIGHER COSTS TO COVER OUR EMPLOYEES COMPLAINED JOAN VAN DER WATER WHO OWNS A SMALL CONNECTICUT GENERAL CONTRACTING FIRM MR BOWLES SAID HE IS LOBBYING WITHIN THE ADMINISTRATION TO EASE THE IMPACT IF AS EXPECTED SMALL FIRMS ARE REQUIRED TO PROVIDE HEALTHINSURANCE COVERAGE UNDER PRESIDENT CLINTON'S COMING PLAN THE SBA CHIEF IS PRESSING FOR A MODEST HEALTHCARE PLAN FOR SMALL BUSINESSES THAT WILL REQUIRE EMPLOYEES TO CONTRIBUTE A LONG PHASEIN PERIOD AND A RAINYDAY FUND TO HELP COMPANIES THAT CAN'T AFFORD THE COST HE SAID HE ALSO WANTS ANY NEW SYSTEM TO INCLUDE WORKERS' COMPENSATION COVERAGE AND TO LET SELFEMPLOYED PEOPLE DEDUCT THE ENTIRE COSTS OF HEALTH INSURANCE FROM THEIR TAXES MR BOWLES'S ANSWER DIDN'T COMPLETELY SATISFY MS VAN DER WATER THAT SOUNDS GOOD BUT WHEN SOCIETY HAS A PROBLEM WHY DOES EVERYBODY LOOK TO SMALL BUSINESS TO PAY FOR IT WE CAN'T AFFORD IT SHE SAID RICHARD WIEHL PRESIDENT OF CONSUMER PETROLEUM INC FAIRFIELD CONN DREW LOUD APPLAUSE WHEN HE COMPLAINED ABOUT A LONG LIST OF FEDERAL ENVIRONMENTAL REGULATIONS BECAUSE OF THEM I HAVE TO LAY OFF PUT OFF AND SELL OFF TO SURVIVE HE SAID MR BOWLES SAID HE WANTS TO EASE UNNECESSARY RULES AND PROMISED TO HAVE THE SBA'S ADVOCACY OFFICE LOOK INTO IT I STILL DON'T KNOW IF I'LL GET ALL THOSE THINGS HEALTHCARE PROPOSALS BUT MY JOB IS TO FIGHT HARD FOR SMALL BUSINESS WITHIN THE ADMINISTRATION MR BOWLES SAID AFTER THE MEETING BECAUSE OF HIS BUSINESS EXPERIENCE THE NEW ADMINISTRATOR IS ALREADY VIEWED AS HAVING MORE INFLUENCE IN WASHINGTON THAN HIS PREDECESSORS MOST OF WHOM WERE DEFEATED POLITICIANS HE WAS RECENTLY GIVEN A SEAT ON THE WHITE HOUSE'S ECONOMIC POLICY COUNCIL SOMETHING THAT ELUDED PAST SBA ADMINISTRATORS AND IS GENERALLY REGARDED AS HAVING ACCESS TO THE PRESIDENT HE TELLS HIS AUDIENCE HERE THAT HE WILL BE SPENDING ALL DAY SATURDAY WITH MR CLINTON AND PROMISES TO RAISE THEIR CONCERNS JUDGING BY THE AUDIENCE HERE THE SBA ADMINISTRATOR IS LIKELY TO NEED ALL THE INFLUENCE HE CAN MUSTER TO PLEASE WHAT HE CALLS HIS SMALLBUSINESS CUSTOMERS MINORITY BUSINESSES JAMES THOMAS OWNER OF A BUILDING CONTRACTING FIRM DESCRIBED HIS PROBLEMS AS A MINORITY BUSINESSMAN WORKING WITH FEDERAL CONTRACTING OFFICERS WHO DO YOU CALL WHEN YOU KNOW THERE ARE COMPANIES OPERATING AS FRONTS HE ASKED REFERRING TO SOME LARGER CONCERNS' PRACTICE OF USING MINORITY COMPANIES TO WIN FEDERAL CONTRACTS MR BOWLES PROMISED TO LOOK INTO MR THOMAS'S CASE REVEALING SOME OF HIS PLANS FOR THE SBA HE ALSO SAID HE WANTS TO EXPAND THE NUMBER OF COMPANIES PARTICIPATING IN THE SETASIDE PROGRAM FOR DISADVANTAGED FIRMS SEEKING FEDERAL CONTRACTS AND HE SAID HE IS TALKING TO THE EXPORT IMPORT BANK ABOUT ADMINISTERING SOME SMALL LOANS AS PART OF THE SBA'S EFFORT TO ENCOURAGE SMALL COMPANIES TO BECOME EXPORTERS MR BOWLES ALSO SAID HIS AGENCY WILL OPEN SEVERAL CENTRAL LOAN PROCESSING CENTERS WHERE SOME APPLICATIONS FOR SBABACKED LOANS CAN BE PROCESSED IN A HALFHOUR INSTEAD OF THE CURRENT MINIMUM TIME OF FOUR DAYS ON FRIDAY HE ALSO MET PRIVATELY WITH BANKERS IN THE REGION TO TALK ABOUT THE TYPE OF NEW LOAN PRODUCT THE INDUSTRY MIGHT NEED TO SERVE SMALL COMPANIES AT THE TOWN MEETING MR BOWLES GOT A LOT OF CREDIT SIMPLY FOR SHOWING UP I'VE NEVER MET AN SBA PERSON BEFORE SAID RUSSELL JOHNSON OF LLOYD'S ROBART'S FURS IN WEST HARTFORD CONN WELL YOU'VE MET ONE NOW MR BOWLES ANSWERED STRIDING FORWARD AND EXTENDING HIS HAND KENNETH H BACON IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9307190073 930719 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 59 DAYS 309 60 TO 89 DAYS 311 90 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 325 180 TO 229 DAYS 332 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 314 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 266 THREE MONTHS 288 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 308 ONE MONTH 315 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 305 90 DAYS 309 120 DAYS 311 150 DAYS 318 180 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 5/16 3 3/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 1/2 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 12 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 304 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 687 60 DAYS 694 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 680 60 DAYS 690 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 500 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9307190072 930719 UK'S STOCK OFFERING OF BRITISH TELECOM PRICED AT 743 BILLION SPECIAL TO THE WALL STREET JOURNAL LONDON UK GOVERNMENT SHARES IN BRITISH TELECOMMUNICATIONS PLC WILL BE SOLD TO INTERNATIONAL INVESTORS AT 420 PENCE 624 A SHARE BRITISH INVESTMENT BANK SG WARBURG & CO ANNOUNCED WARBURG THE OFFER'S GLOBAL COORDINATOR SAID THE 5 BILLION 743 BILLION OFFER WHICH CLOSED FRIDAY WAS MORE THAN THREETIMES OVERSUBSCRIBED INTERNATIONAL INSTITUTIONAL INVESTORS BID FOR 12 BILLION IN SHARES AND WILL RECEIVE 40 OF THE OFFER UK RETAIL INVESTORS BID FOR 4 BILLION WORTH AND WILL RECEIVE 60 THE OFFER HAD BEEN TENTATIVELY SPLIT 5050 BT SHARES CLOSED FRIDAY ON THE LONDON STOCK EXCHANGE AT 4085 PENCE DOWN A PENNY ON THE DAY GIVING THE GOVERNMENT A 28 PREMIUM ON ITS SHARES THE PRICE WAS ABOUT AS EXPECTED BUT THE LEVEL OF INSTITUTIONAL DEMAND WAS GREATER THAN HAD BEEN ASSUMED THE GOVERNMENT WILL SELL ABOUT 122 BILLION SHARES IN BT THE UK'S LARGEST COMPANY BY MARKET CAPITALIZATION REDUCING ITS STAKE TO 15 FROM 218 THE OFFER WAS THE THIRD AND FINAL OFFER OF BT SHARES BY THE GOVERNMENT THE FIRST WAS IN 1984 WHEN THE GOVERNMENT SOLD JUST OVER 50 OF THE COMPANY'S STOCK AND THE SECOND WAS IN 1991 WHEN IT SOLD 256 9307190070 930719 BUSINESS BRIEF AAON INC INCREASE OF AS MUCH AS 32 SEEN FOR SECONDPERIOD NET AAON INC TULSA OKLA EXPECTS TO REPORT THAT EARNINGS FOR THE SECOND QUARTER WERE 24 TO 32 HIGHER THAN THE PRIOR YEAR PRESIDENT NORMAN H ASBJORNSON SAID MR ASBJORNSON SAID HE EXPECTS THE MAKER OF ROOFTOP HEATING AND AIRCONDITIONING EQUIPMENT TO REPORT SECONDQUARTER NET OF 800000 TO 850000 OR FOUR CENTS A SHARE COMPARED WITH 646000 OR THREE CENTS A SHARE A YEAR EARLIER SALES ROSE AN ESTIMATED 19 TO 118 MILLION FROM 99 MILLION A YEAR AGO HE ADDED IN THE FIRST HALF MR ASBJORNSON SAID THE COMPANY EXPECTS TO REPORT NET OF ABOUT 12 MILLION TO 125 MILLION OR SIX CENTS A SHARE COMPARED WITH 687000 OR THREE CENTS A SHARE A YEAR EARLIER FIRSTHALF SALES ROSE AN ESTIMATED 14 TO ABOUT 193 MILLION FROM 169 MILLION A YEAR EARLIER 9307190069 930719 TECHNOLOGY IBM PLANS TO ALLOW SOFTWARE CUSTOMERS TO BROWSE AND BUY VIA COMPACT DISK BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP FOLLOWING TWO OF THE COUNTRY'S BIGGEST SOFTWARE DISTRIBUTORS WILL ANNOUNCE TODAY PLANS FOR WHAT IT HOPES WILL BE THE NEXT ADVANCE IN SELLING COMPUTER SOFTWARE IBM'S CONTRIBUTION CALLED CD SHOWCASE IS A CD ROM THAT WOULD DELIVER PROGRAMS TO THE CONSUMER WITHOUT FANCY PACKAGING AND REPEATED TRIPS TO THE STORE IT FOLLOWS SIMILAR PLANNED OFFERINGS ANNOUNCED BY INGRAM MICRO INC THE SANTA ANA CALIF SOFTWARE DISTRIBUTOR AND MERISEL INC AN EL SEGUNDO CALIF DISTRIBUTOR THE CONCEPT IS TARGETED AT EFFICIENCY AND COST SAVINGS FOR SOFTWARE PUBLISHERS INSTEAD OF BUYING BOXES OF INDIVIDUAL SOFTWARE DISKS OFFERING ONE PROGRAM A CUSTOMER CAN WALK INTO A STORE AND PICK UP A CD ROM EITHER FOR FREE OR AT MINIMAL COST THAT CONTAINS 100 DIFFERENT SOFTWARE PROGRAMS THE CUSTOMER THEN GOES HOME AND DECIDES WHICH PROGRAM HE WANTS TO BUY THE PURCHASE IS EXECUTED BY CALLING AN 800 NUMBER AND RECEIVING A DECRYPTING CODE TO UNLOCK THE PRODUCT FROM THE CD ROM AFTER THE PROPER INFORMATION INCLUDING BILLING IS PROVIDED IBM AND OTHERS SAY THEY HAVE DESIGNED ELABORATE SECURITY SYSTEMS THAT WILL PROHIBIT CUSTOMERS FROM TURNING AROUND AND LENDING THEIR CODE AND CD ROM TO FRIENDS THE PROGRAM CAN ONLY BE UNLOCKED ONCE AND CAN ONLY BE USED ON A PARTICULAR MACHINE AN IBM SPOKESWOMAN SAID MAJOR COMPANIES WHOM SHE WOULDN'T IDENTIFY WILL JOIN IN ITS MONDAY ANNOUNCEMENT IBM SAID ITS VERSION WILL BE IN STORES BY THE END OF THE YEAR BUT IBM'S ENTRY INTO THIS MARKET IS PERPLEXING DISTRIBUTORS AS WELL AS INDUSTRY OBSERVERS THEY SAY THEY DON'T SEE ANY SPECIAL GAINS FOR BIG BLUE IN THE SOFTWARE DISTRIBUTION BUSINESS I DON'T SEE ANYTHING PROPRIETARY HERE SAYS JAY P STEVENS A SENIOR VICE PRESIDENT AT DEAN WITTER WHO FOLLOWS IBM WON'T THIS BE LIKE 800 NUMBERS ADDS DAVID ELIASBERG GENERAL MANAGER OF INGRAM MICRO'S TECHNICAL SERVICES DIVISION IT'S VERY UNCLEAR WHY IBM WANTS TO DO THIS IBM HE NOTES IS ONE OF INGRAM MICRO'S BIGGEST CLIENTS AND HE THINKS THE COMPANY IS UNNECESSARILY CROSSING THE LINES WE'RE NOT TRYING TO MANUFACTURE HARDWARE HE SAYS ANOTHER CRITICISM REVOLVES AROUND WHETHER CD ROMS WILL BE SUCCESSFUL DISTRIBUTION TOOLS IN ANY CASE OBSERVERS WHO HAVE STUDIED CONSUMER SHOPPING HABITS SAY IT'S WELL ESTABLISHED THAT PEOPLE LIKE TO GO TO THE STORE TO BUY THINGS THEY ALSO SEE ADMINISTRATIVE HEADACHES WITH THE CD ROM DISKS BECAUSE SOFTWARE PROGRAMS BECOME SO QUICKLY OUTDATED CUSTOMERS WILL HAVE TO GO BACK TO THE STORE ANYWAY FOR THE NEW VERSION COMPUTER DEALERS ARE ALSO NOT LIKELY TO THINK THE CD ROMS ARE A GREAT IDEA BECAUSE THEY COULD KEEP PEOPLE OUT OF THEIR STORES DEALERS COULD BE UNWILLING TO SELL THEM THEY ARE DOOMED TO FAILURE SAYS SEYMOUR MERRIN PRESIDENT OF MERRIN INFORMATION SERVICES INC A COMPUTER INDUSTRY CONSULTANT IN PALO ALTO CALIF IT'S NOT THE WAY PEOPLE LIKE TO SHOP I THINK THERE WILL BE A LITTLE BUBBLE OF EXCITEMENT AND THEN THEY WILL DIE 9307190068 930719 CORRECTIONS & AMPLIFICATIONS THE AVERAGE THREEYEAR RETURN FOR 20 MAJOR SHORTSELLING FIRMS WAS A LOSS OF 145 A YEAR THROUGH JUNE 30 IN FRIDAY'S HEARD ON THE STREET COLUMN THE ANNUAL RETURN WAS MISSTATED AS A 45 LOSS DUE TO A TYPOGRAPHICAL ERROR BY ROCKBRIDGE PARTNERS WHICH SUPPLIED THE DATA NYNEX CORP DECLARED A 2FOR1 STOCK SPLIT PAYABLE SEPT 15 TO STOCK OF RECORD AUG 16 AN ARTICLE FRIDAY INCORRECTLY SAID THE PAYMENT DATE WAS AUG 16 LUKENS INC'S SECONDQUARTER EARNINGS SHOULDN'T HAVE BEEN INCLUDED IN THE QUARTERLY EARNINGS SURPRISES TABLE THAT APPEARED IN LAST WEDNESDAY'S EDITION BECAUSE OF AN INACCURATE COMPARISON BETWEEN ACTUAL PERSHARE EARNINGS AND ANALYSTS' ESTIMATES KLEINERT'S INC PROJECTS 1993 REVENUE TO BE ABOUT 70 MILLION NOT INCLUDING ITS SCOTT MILLS TEXTILE BUSINESS WHICH IS BEING SPUN OFF TO SHAREHOLDERS AN ARTICLE TUESDAY ERRONEOUSLY SAID THE 70 MILLION FIGURE INCLUDED SCOTT MILLS THE ARTICLE ALSO DIDN'T MAKE IT CLEAR THAT SCOTT MILLS NOT THE PARENT IS EXPECTED TO HAVE A SMALL LOSS FOR THE YEAR 9307190067 930719 CREDIT RATING MOODY'S REVIEWS DEBT OF 5 CABLETV FIRMS DOWNGRADE IS POSSIBLE NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT PLACED ABOUT 2 BILLION OF LONGTERM DEBT FROM FIVE CABLETELEVISION COMPANIES UNDER REVIEW FOR POSSIBLE DOWNGRADE MOODY'S SAID THE REVIEW WAS PROMPTED BY ITS CONCERN ABOUT THE NEGATIVE IMPACT OF RECENT CABLE TV REGULATION WHICH IS LIKELY TO RESULT IN A SIGNIFICANT ONETIME DOWNWARD ADJUSTMENT OF REVENUES AND CASH FLOW AND THE COMPANIES' RELATIVE LACK OF DIVERSITY MOODY'S SAID THE CHANGES COULD IMPAIR FINANCIAL FLEXIBILITY AND ACCESS TO OTHER SOURCES OF CAPITAL COMPANIES UNDER REVIEW INCLUDE ADELPHIA COMMUNICATIONS CORP COUDERSPORT PA SENIOR UNSECURED DEBT RATED SINGLE B2 CABLEVISION INDUSTRIES CORP LIBERTY NY SENIOR UNSECURED DEBT BA3 CABLEVISION SYSTEMS CORP WOODBURY NY SUBORDINATED DEBT RATED SINGLEB2 CENTURY COMMUNICATIONS CORP NEW CANAAN CONN SENIOR UNSECURED DEBT RATED BA3 AND JONES INTERCABLE INC ENGLEWOOD COLO SUBORDINATED DEBT RATED SINGLEB2 9307190066 930719 TECHNOLOGY IBM AND SAP FORM PACT LONDON A LONGRUNNING FLIRTATION BETWEEN INTERNATIONAL BUSINESS MACHINES CORP AND ONE OF GERMANY'S BIGGEST SOFTWARE HOUSES SAP AG GOT MORE SERIOUS AS THE TWO COMPANIES ANNOUNCED A BROAD SOFTWARE MARKETING PACT THE TWO COMPANIES SAID THEY AGREED TO WORK TOGETHER TO PROMOTE COMPUTER SYSTEMS USING SAP'S DATABASE SOFTWARE THEY'RE OPENING JOINT OFFICES INITIALLY A 50PERSON OPERATION IN GERMANY BUT EVENTUALLY SMALLER OFFICES IN THE US BRITAIN AND ELSEWHERE TO SELL AND CUSTOMIZE COMPUTER SYSTEMS USING SAP SOFTWARE AND IBM HARDWARE FOR INDIVIDUAL CLIENTS THEY SAID THEY'RE ALSO EXPLORING THE POSSIBILITY OF DEVELOPING NEW PRODUCTS TOGETHER FOR THE ARMONK NY COMPUTER GIANT THE PACT CEMENTS PREVIOUSLY INFORMAL TIES TO A COMPANY WHOSE DATABASE SOFTWARE RUNS TODAY ON HUNDREDS OF IBM MAINFRAME COMPUTERS AROUND THE WORLD THE ALLIANCE MAY HELP IBM FIND A WAY TO KEEP ITS MAINFRAME CLIENTS LOYAL AS IBM'S WORLDWIDE MAINFRAME SALES HAVE SAGGED IT HAS BEEN PUSHING SIMULTANEOUSLY TO UPDATE ITS BIG MACHINES WHILE ALSO SELLING THE SOCALLED CLIENT/SERVER NETWORKS OF PERSONAL COMPUTERS AND WORKSTATIONS THAT ARE INCREASINGLY TAKING THE PLACE OF MAINFRAMES IN BIG CORPORATIONS THE SAP LINK HELPS BECAUSE THE GERMAN COMPANY RECENTLY REWROTE MUCH OF ITS IBMCOMPATIBLE MAINFRAME SOFTWARE TO WORK ON THOSE FASTGROWING CLIENT/SERVER NETWORKS GIVING IBM ANOTHER MARKETING TOOL SAP'S NET INCOME LAST YEAR TOTALED 1272 MILLION MARKS 738 MILLION ON REVENUE OF 8312 MILLION MARKS 9307190065 930719 CREDIT RATINGS NEW YORK MOODY'S INVESTORS SERVICE INC CONFIRMED THE BAA1 RATING OF NEW YORK CITY'S GENERAL OBLIGATION BONDS WHICH THE AGENCY HAD REVIEWED IN CONJUNCTION WITH A NEW OFFERING MOODY'S SAID THE CITY'S RATING WAS SUPPORTED BY A MODEST OPERATING SURPLUS PROJECTED FOR FISCAL 1993 AND THE FACT THAT THE FISCAL 1994 BUDGET WAS NOMINALLY BALANCED BUT IT NOTED THAT THE PLANS FOR FISCAL 1995 AND BEYOND SHOWED SIZABLE BUDGET GAPS AND THAT ECONOMIC RECOVERY WOULD HAVE A MIXED EFFECT ON THE CITY SOUTHERN UNION CO AUSTIN TEXAS STANDARD & POOR'S CORP SAID IT PLACED THE TRIPLEBPLUSRATED SENIOR UNSECURED DEBT OF THIS NATURAL GAS DISTRIBUTION CONCERN ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS THE RATINGS CONCERN SAID THAT AS MUCH AS 110 MILLION OF SOUTHERN UNION DEBT MAY BE AFFECTED S&P ADDED THAT IT WILL REVIEW SOUTHERN UNION'S PROPOSED PURCHASE OF THE MISSOURI GAS DISTRIBUTION PROPERTIES OF KPL GAS A UNIT OF WESTERN RESOURCES INC BASED IN TOPEKA KAN THE PLANNED 360 MILLION ACQUISITION WILL DOUBLE THE SIZE OF SOUTHERN UNION WHOSE FINANCIAL PROFILE IS ALREADY WEAK FOR THE CURRENT RATINGS S&P SAID 9307190064 930719 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ALCO HEALTH SERVICES CORP 1265 MILLION OF SENIOR DEBENTURES OFFERING VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AMERICAN HEALTHCARE MANAGEMENT INC 100 MILLION OF SENIOR SUBORDINATED NOTES OFFERING VIA GOLDMAN SACHS & CO ANDOVER CONTROLS CORP THREE MILLION SHARES 24 MILLION IN THE US VIA PAINEWEBBER INC ARETHUSA OFFSHORE LTD INITIAL 85 MILLION SHARES VIA SALOMON BROTHERS INC ATLANTIC COAST AIRLINES INITIAL 22 MILLION SHARES VIA ALEX BROWN & SONS INC AUTOMOTIVE INDUSTRIES HOLDING INC 46 MILLION SHARES VIA KIDDER PEABODY & CO CAMDEN PROPERTY TRUST 74 MILLION SHARES OF BENEFICIAL INTEREST VIA KIDDER PEABODY CHICAGO & NORTHWESTERN HOLDINGS CORP SECONDARY OFFERING OF 137 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE COUNTRYWIDE MORTGAGE INVESTMENTS NINE MILLION SHARES VIA MERRILL LYNCH & CO DATAWARE TECHNOLOGIES INITIAL TWO MILLION SHARES VIA HAMBRECHT & QUIST INC GENERAL ATLANTIC RESOURCES INC INITIAL 34 MILLION SHARES 27 MILLION IN THE US/CANADA VIA LEHMAN BROTHERS INTERCO INC SECONDARY OFFERING OF 32 MILLION SHARES VIA FIRST BOSTON CORP KEY TECHNOLOGY 17 MILLION SHARES 13 MILLION OFFERED BY THE COMPANY VIA NEEDHAM & CO LA PETITE HOLDINGS CORP 85 MILLION OF SENIOR SECURED NOTES OFFERING VIA BT SECURITIES CORP MASSACHUSETTS HEALTH & EDUCATION TAXEXEMPT TRUST INITIAL 27 MILLION SHARES VIA KIDDER PEABODY MRS TECHNOLOGY INC INITIAL 23 MILLION SHARES VIA PRUDENTIAL SECURITIES INC MUNICIPAL PARTNERS FUND II INITIAL 37 MILLION SHARES VIA OPPENHEIMER & CO NEUREX CORP INITIAL THREE MILLION CLASS A SHARES VIA LEHMAN BROTHERS AND KIDDER PEABODY NEXTEL INC SECONDARY OFFERING OF 45 MILLION SHARES VIA MERRILL LYNCH NUVEEN INSURED PREMIUM INCOME FUND INITIAL 100000 SHARES VIA MERRILL LYNCH NUVEEN MARYLAND PREMIUM INCOME MUNI FUND 2 NUVEEN OHIO PREMIUM INCOME MUNI FUND 2 NUVEEN VIRGINIA PREMIUM INCOME MUNI FUND 2 EACH AN INITIAL OFFERING OF 100000 SHARES VIA ALEX BROWN AND MERRILL LYNCH PDV AMERICA INC 1 BILLION OF THREEPART SENIOR NOTES OFFERING VIA SALOMON BROTHERS PANAMSAT LP 310 MILLION OF TWOTRANCHE OFFERING VIA DONALDSON LUFKIN & JENRETTE PETSMART INC INITIAL 72 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE PUEBLO XTRA INTERNATIONAL 180 MILLION OF SENIOR NOTES VIA MORGAN STANLEY & CO QUADRUM FINANCIAL SERVICES 23 MILLION AMERICAN DEPOSITARY RECEIPTS EACH REPRESENTING 10 ORDINARY SERIES A SHARES PART OF 109 MILLION GLOBAL OFFERING VIA BEAR STEARNS & CO RENAL TREATMENT CENTERS INC INITIAL 23 MILLION SHARES VIA FIRST BOSTON SAVANNAH ELECTRIC & POWER CO A UNIT OF SOUTHERN CO 30 MILLION OF FIRST MORTGAGE BONDS OFFERING VIA COMPETITIVE BID SHANGHAI PETROCHEMICAL CO INITIAL 114 MILLION AMERICAN DEPOSITARY RECEIPTS EACH REPRESENTING 74 CLASS H SHARES 68 MILLION SHARES OFFERED IN US/CANADA VIA MERRILL LYNCH SUMMIT TECHNOLOGY INC ONE MILLION SHARES VIA BEAR STEARNS UNITED INTERNATIONAL HOLDINGS INC INITIAL 31 MILLION SHARES 25 MILLION IN THE US VIA SMITH BARNEY HARRIS & UPHAM & CO UNITED MERIDIAN CORP INITIAL 79 MILLION SHARES VIA MERRILL LYNCH USX US STEEL GROUPNINE MILLION SHARES 72 MILLION OFFERED IN THE US VIA LEHMAN BROTHERS VICAL INC TWO MILLION SHARES WITH 300000 SHARE OVERALLOTMENT OPTION VIA HAMBRECHT & QUIST VOYAGEUR COLORADO INSURED MUNI INCOME FUND INC INITIAL 100000 SHARES VIA MERRILL LYNCH WONDERWARE CORP INITIAL 22 MILLION SHARES VIA MONTGOMERY SECURITIES CHARLOTTE NC APPROXIMATELY 139180000 OF REFUNDING BONDS DUE 19942010 AND 62 MILLION OF VARIOUS REFUNDING BONDS DUE 19942018 VIA COMPETITIVE BID CALIFORNIA PUBLIC WORKS BOARD 322 MILLION OF LEASE REVENUE REFUNDING BONDS 1993A REGENTS OF THE UNIVERSITY OF CALIFORNIA DUE 19942009 2015 AND 2023 VIA A REINOSO & CO GROUP HOUSTON AIRPORT TEXAS 100 MILLION OF TAXABLE BONDS VIA A MERRILL LYNCH GROUP MATAGORDA COUNTY NAVIGATION DISTRICT NO 1 TEXAS 2209 MILLION OF POLLUTION CONTROL REVENUE BONDS FOR CENTRAL POWER & LIGHT CO PROJECT SERIES 1993 VIA A GOLDMAN SACHS GROUP METROPOLITAN GOVERNMENT OF NASHVILLE & DAVIDSON COUNTIES TENN 155740000 OF WATER AND SEWER REFUNDING REVENUE BONDS DUE 19962008 2013 AND 2016 VIA A DONALDSON LUFKIN & JENRETTE GROUP NEW YORK CITY 675 MILLION OF FISCAL 1994 SERIES A GENERAL OBLIGATION BONDS VIA A FIRST BOSTON GROUP NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 480 MILLION OF REVENUE BONDS FOR ST LUKES HOSPITAL VIA A BEAR STEARNS GROUP OKLAHOMA 100 MILLION OF GENERAL OBLIGATION BONDS DUE 19942013 VIA A STIFEL NICOLAUS & CO GROUP ORANGE COUNTY WATER DISTRICT CALIF 160 MILLION OF BONDS VIA A SMITH BARNEY GROUP PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY 750 MILLION OF REVENUE BONDS DUE 19942006 CAPITAL APPRECIATION BONDS DUE 20032010 TERM BONDS DUE 2010 2016 AND 2013 VIA A PRYOR MCCLENDON COUNTS & CO GROUP SARASOTA COUNTY SCHOOL BOARD FLA 1153 MILLION OF MBIAINSURED BONDS VIA A MERRILL LYNCH GROUP WASHINGTON STATE 400 MILLION OF GENERAL OBLIGATION BONDS VIA A LEHMAN BROTHERS GROUP WISCONSIN 170 MILLION OF CLEAN WATER REVENUE BONDS 19942013 SERIES 1 AND 2 VIA A PRUDENTIAL GROUP 9307190062 930719 LAW SOFAER WILL DROP LIBYA AS PAN AM BOMBING CLIENT WASHINGTON AP ABRAHAM SOFAER A FORMER LEGAL ADVISER TO THE STATE DEPARTMENT WILL DROP THE LIBYAN GOVERNMENT AS A CLIENT IN CASES INVOLVING THE 1988 BOMBING OF A PAN AMERICAN JETLINER HIS LAW FIRM SAID MR SOFAER ACTED BECAUSE OF HIGHLY NEGATIVE REACTIONS FROM THE PUBLIC AND BY SOME US OFFICIALS TO NEWS THAT HE HAD DECIDED TO REPRESENT LIBYA ACCORDING TO A STATEMENT ISSUED BY THE FIRM HUGHES HUBBARD & REED REGRETTABLY THE PUBLIC PERCEPTION OF THIS UNDERTAKING AND THE REACTION OF GOVERNMENT AUTHORITIES HAS BEEN SO NEGATIVE AS TO LEAD US TO CONCLUDE THAT WE COULD NOT EFFECTIVELY CARRY OUT THIS REPRESENTATION THE STATEMENT SAID THAT REACTION DEVELOPED AFTER THE FIRM ANNOUNCED A WEEK AGO THAT MR SOFAER WOULD REPRESENT THE LIBYAN GOVERNMENT IN CIVIL AND CRIMINAL CASES INVOLVING THE DECEMBER 1988 BOMBING OF PAN AM FLIGHT 103 OVER LOCKERBIE SCOTLAND A STATEMENT BY MR SOFAER SAID THE FIRM WOULD ADVISE THE LIBYAN GOVERNMENT IN DEVELOPING SOLUTIONS TO THE DIFFERENCES THAT EXIST IN THESE LITIGATIONS BUT HE SAID THE FIRM WOULDN'T REPRESENT LIBYA AT ANY TRIALS 9307190061 930719 BUSINESS BRIEF CIA ESPANOLA DE PETROLEOS SA PRETAX EARNINGS ARE UP 5 AT OIL REFINING COMPANY CEPSA DIDN'T PROVIDE YEAREARLIER FIGURES BUT NOTED THAT ITS RESULTS WERE BOOSTED BY FAVORABLE REFINING PROFIT MARGINS THE DECLINING PRICE OF CRUDE OIL AND THE APPRECIATION OF THE DOLLAR AGAINST THE PESETA CEPSA SAID ITS SALES ROSE 7 IN THE FIRST SIX MONTHS TO EIGHT MILLION TONS OF PETROLEUM AND PETROLEUMBASED PRODUCTS 21 MILLION TONS OF WHICH WERE EXPORTS OUT OF THE TOTAL 18 BILLION PESETAS IN CASH FLOW GENERATED IN THE FIRST SIX MONTHS OF THE YEAR SOME 15 BILLION PESETAS CAME FROM PETROLEUM SALES AND REFINING ANOTHER THREE BILLION CAME FROM PETROCHEMICAL AND PLASTICS OPERATIONS 9307190060 930719 BUSINESS BRIEF MATRAHACHETTE SA COMPANY SELLS DNA STAKE COMPLETES ASSETSALE PLAN FRENCH INDUSTRIAL AND COMMUNICATIONS GROUP MATRAHACHETTE SA SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ASSETSALE PROGRAM WITH THE SALE OF 51 OF LES DERNIERES NOUVELLES D'ALSACE OR DNA TO THE HERSANT PUBLISHING GROUP UNIT UNION DE REIMS FOR 3315 MILLION FRANCS 563 MILLION MATRAHACHETTE FORMED WHEN COMPANY CHAIRMAN JEANLUC LAGARDERE MERGED MATRA SA INTO HACHETTE SA HAD PLANNED TO SELL 13 BILLION FRANCS OF ASSETS TO REDUCE ITS DEBT AND IMPROVE ITS FINANCIAL SITUATION ACCORDING TO A COMMUNIQUE THAT LEVEL HAS ALREADY BEEN EXCEEDED THE COMMUNIQUE ADDED MATRAHACHETTE SAID THAT ITS HACHETTE FILIPACCHI UNIT SOLD DNA A REGIONAL DAILY FOR MORE THAN 50 OVER ITS SHARE PRICE ON THE NANCY REGIONAL STOCK EXCHANGE THE SHARE PRICE WASN'T AVAILABLE HOWEVER 9307190059 930719 GROUPS SEEK PROBE OF PAPER TRADE BODY OVER ANTITRUST ISSUE NEW YORK CONSUMER AND ENVIRONMENTAL GROUPS ASKED THE JUSTICE DEPARTMENT TO INVESTIGATE POSSIBLE ANTITRUST VIOLATIONS BY THE AMERICAN FOREST AND PAPER ASSOCIATION AND ITS MEMBERS IN A POLITICAL SCRIMMAGE OVER THE RECYCLED CONTENT OF PAPER USED IN GOVERNMENT PRINTING THE TRADE ASSOCIATION IN MARCH DEFINED THE WORD RECYCLED FOR USE BY ITS MEMBERS AS PAPER HAVING AT LEAST 10 POSTCONSUMER WASTE THE ENVIRONMENTAL GROUPS WHICH ARE PUSHING FOR POSTCONSUMER OR USED AND DISCARDED RECYCLED CONTENT OF 25 BY THE YEAR 2000 SAY THE PROGRAM CONSTITUTES PRODUCT FIXING THEY SAY IT WILL DRIVE SMALLER MILLS WHOSE FACTORIES CAN ACCOMMODATE A HIGHER LEVEL OF POSTCONSUMER RECYCLED PAPER OUT OF THE MARKET THE INDUSTRY'S DEFINITION OF RECYCLED WOULD ELIMINATE THE USE OF MOST PAPER COLLECTED IN RECYCLING PROGRAMS SAID ELEANOR LEWIS DIRECTOR OF GOVERNMENT PURCHASING PROJECT ONE OF THE GROUPS PETITIONING THE DEPARTMENT IN WASHINGTON RED CAVANEY PRESIDENT OF THE TRADE GROUP SAID THE ALLEGATIONS TOTALLY MISCHARACTERIZE THE RECYCLED CONTENT INITIATIVE AND ADDED THERE IS NOTHING SECRETIVE ABOUT THE INITIATIVE THE AFPA SAYS ITS PROGRAM IS DESIGNED TO MAXIMIZE RECYCLING BY SETTING A LEVEL WITH WHICH LARGE MILLS CAN COMPLY THE FEDERAL GOVERNMENT IS THE NATION'S LARGEST PAPER BUYER AND ITS PURCHASING STANDARDS OFTEN END UP APPLYING IN STATE AND LOCAL GOVERNMENTS AND IN PRIVATE INDUSTRY THE WHITE HOUSE IS EXPECTED TO ISSUE AN EXECUTIVE ORDER THIS MONTH DICTATING A 15 MINIMUM STANDARD 9307190058 930719 PRUDENTIAL SECURITIES CHIEF TELLS THE STAFF SETTLEMENT IS NEAR ACCORD WITH REGULATORS ON SALE OF LIMITED PARTNERSHIPS IN THE 1980S EXPECTED SOON BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC'S CHIEF EXECUTIVE HAD AN UPBEAT MESSAGE FOR EMPLOYEES DOGGED BY BAD PUBLICITY OVER THE BROKERAGE FIRM'S PARTNERSHIP WOES THE END IS NEAR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT IS EXTRAORDINARILY CLOSE TO A GLOBAL SETTLEMENT WITH FEDERAL AND STATE REGULATORS INVESTIGATING WHETHER THE FIRM IMPROPERLY SOLD LIMITED PARTNERSHIPS IN THE 1980S HARDWICK SIMMONS TOLD EMPLOYEES FRIDAY OVER THE FIRM'S INTERNAL COMMUNICATIONS SYSTEM MR SIMMONS PRUDENTIAL SECURITIES PRESIDENT AND CEO SAID THE FIRM'S BROKERS HAVE BEEN BOMBARDED WITH CLIENT QUESTIONS FROM THE CONSTANT REMINDER OF OUR MISTAKES IN THE '80S IN RECENT NEWS ARTICLES MR SIMMONS SAID IT SHOULDN'T TAKE MORE THAN A FEW WEEKS TO WORK OUT ANY GLITCHES AND PREPARE THE SETTLEMENT DOCUMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION AND OTHER REGULATORS PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM WILL PAY AS MUCH AS 400 MILLION IN A RESTITUTION FUND FOR PARTNERSHIP INVESTORS AS PART OF THE SETTLEMENT PEOPLE FAMILIAR WITH THE MATTER SAID MR SIMMONS'S REMARKS APPEAR TO LAY TO REST ANY CHANCE THAT SETTLEMENT TALKS COULD FALL THROUGH AT THE LAST MOMENT AMID CALLS BY SOME STATE REGULATORS FOR STIFFER PENALTIES THE SEC AND STATE REGULATORS HAVE DECLINED TO COMMENT ON THE INVESTIGATION OR SETTLEMENT AS IS THEIR PRACTICE MR SIMMONS ALSO TOLD EMPLOYEES THAT THE FIRM HAD RECORD PRETAX PROFIT AFTER RESERVES FOR THE SIX MONTHS OF 138 MILLION 9 HIGHER THAN THE YEAREARLIER PERIOD LIKE OTHER BIG BROKERAGE FIRMS PRUDENTIAL SECURITIES IS THRIVING AMID STRONG STOCKTRADING AND MUTUALFUND ACTIVITY BY INDIVIDUAL INVESTORS PRUDENTIAL'S PROFIT WOULD HAVE BEEN HIGHER HAD THE FIRM NOT TAKEN ABOUT 125 MILLION IN RESERVES FOR LITIGATION STEMMING FROM ITS PARTNERSHIP PROBLEMS MEANWHILE PRUDENTIAL IS EXPECTED NEXT MONTH TO OFFER A REVISED SETTLEMENT OF ABOUT 100 MILLION IN A CLASSACTION CASE BROUGHT BY 130000 ENERGYPARTNERSHIP INVESTORS IN A FEDERAL COURT IN NEW ORLEANS ON FRIDAY FEDERAL JUDGE MARCEL LIVAUDAIS JR SET A HEARING FOR AUG 13 TO DISCUSS THE PROGRESS OF THE SETTLEMENT TALKS PRUDENTIAL HAS ALREADY SET ASIDE NEARLY 500 MILLION IN RESERVES DURING THE PAST FEW YEARS TO DEAL WITH LAWSUITS BY ANGRY INVESTORS WHO BOUGHT REAL ESTATE ENERGY AND OTHER LIMITED PARTNERSHIPS MANY OF WHICH HAVE SOURED AMID TAXLAW CHANGES AND MARKET DOWNTURNS THE MONEY FOR SETTLING THE FEDERAL AND STATE REGULATORY CASE AND THE CLASSACTION LITIGATION COULD BRING THE FIRM'S LEGAL TAB TO RESOLVE ITS PARTNERSHIP HEADACHES TO NEARLY 1 BILLION IN HIS TALK TO EMPLOYEES MR SIMMONS DIDN'T DISCUSS HOW MUCH THE REGULATORY SETTLEMENT WOULD COST THE FIRM HE TOLD EMPLOYEES THE PENALTY WOULD ALMOST CERTAINLY BE A LARGE ONE BUT ONE THAT WOULDN'T DAMAGE THE FIRM INTERRUPT OUR BUSINESS OR CHANGE IN ANY WAY OUR ABILITY TO SERVE THE FIRM'S CUSTOMERS THE SETTLEMENT WILL CALL FOR PRUDENTIAL TO SET UP A CLAIMS FUND FOR AGGRIEVED INVESTORS TO TAP INTO MR SIMMONS TOLD EMPLOYEES HE SAID THERE STILL WAS SOME QUESTION ABOUT WHETHER THE CIVIL SETTLEMENT WOULD INCLUDE ALLEGATIONS OF FRAUD AGAINST THE FIRM'S FORMER SENIOR MANAGERS OR WHETHER THE PARTNERSHIP PROBLEMS WOULD BE BLAMED ON ILLDIRECTED BUSINESS DECISIONS BY SOME LOWERLEVEL PEOPLE BUT HE SAID THE SETTLEMENT WILL SHOW THAT PROBLEMS STEMMING FROM PARTNERSHIPS PRUDENTIAL SOLD ABOUT 6 BILLION IN PARTNERSHIP INVESTMENTS BETWEEN 1983 AND 1990 HAVE NOTHING TO DO WITH THE PRACTICES OF THE FIRM IN THE PAST FEW YEARS MR SIMMONS SAID THE SETTLEMENT WON'T AFFECT A RECENTLY LAUNCHED CRIMINAL INQUIRY OF THE FIRM THE US ATTORNEY'S OFFICE IN MANHATTAN LAST MONTH BEGAN A CRIMINAL INVESTIGATION OF THE FIRM'S PARTNERSHIP PRACTICES PROSECUTORS ARE TRYING TO DETERMINE WHETHER THERE WERE ANY ILLEGAL PAYMENTS MADE TO FORMER PRUDENTIAL EXECUTIVES IN CONNECTION WITH THE CREATION MARKETING AND DISTRIBUTION OF THE PARTNERSHIPS 9307190057 930719 REVIEW & OUTLOOK EDITORIAL USERFRIENDLY SKIES LIKE EVERYBODY ELSE WE'VE BEEN WAITING FOR THE CLINTONITES TO ACTUALLY REINVENT SOME GOVERNMENT A GOOD PLACE TO START WOULD BE SHHHH PRIVATIZING THE FEDERAL AVIATION ADMINISTRATION YOU CAN'T USE THE WORD OF COURSE BECAUSE IT SMACKS OF REAGANISM THATCHERISM AND OTHER EVILS OF THE '80S YET THIS NAUGHTY IDEA HAS BUBBLED TO THE TOP OF BILL CLINTON'S SAVE THE AIRLINES COMMISSION DELIBERATING THIS WEEK IN BELTWAY LAND COMMISSION MEMBER FELIX ROHATYN SPENDS HIS DAYS PROPOUNDING THE NOTION THAT THE AIRLINES SUFFER FROM TOO MUCH DEBT AND NOT ENOUGH BUREAUCRATS IN THE COPILOT'S SEAT BUT SOME OF HIS FELLOW COMMISSIONERS HAVE BEGUN TO SUSPECT THAT THE REAL PROBLEM IS TOO MUCH PARTNERSHIP WITH WASHINGTON THE PRODUCTION LINE OF THIS HUGE INDUSTRY IS COMPLETELY UNDER CONTROL OF THE FEDERAL GOVERNMENT ECONOMIST DAN KASPER TESTIFIED YOU CAN'T START A PLANE AND MOVE IT BACK FROM THE GATE WITHOUT PERMISSION FROM A FEDERAL CONTROLLER NO OTHER INDUSTRY DEPENDS SO ENTIRELY ON WASHINGTON FOR ITS ABILITY TO FUNCTION THE FAA AS NOW STRUCTURED IS INDIFFERENT TO THE AGONY IT IMPOSES ON AIR TRAVELERS TALK ABOUT HAIRCUTS TRAFFIC DELAYS COST THE CARRIERS AND THEIR PASSENGERS 5 BILLION A YEAR MEANWHILE FAA'S VAUNTED COMPUTER UPGRADE HAS BECOME AN 11YEAR SWAMP AT THIS RATE THEY'LL STILL BE FUMBLING WITH VACUUM TUBES AND HAND PADDLES LONG AFTER THE TECHNOLOGY HAS EVOLVED TOWARD MIND CONTROL YOU'VE GOT A HIGHTECH INDUSTRY WHOSE MINUTEBYMINUTE OPERATING PERFORMANCE IS CAPPED BY THE FEDERAL GOVERNMENT'S OPERATING PERFORMANCE COMMISSIONER CHIP BARCLAY TELLS US PUT THAT WAY IT SOUNDS LIKE A BAD JOKE THOUGH CONGRESS NO LONGER INSISTS ON APPROVING EVERY CONTRACT OVER 500000 FAA STILL HAS TO WADE ANNUALLY THROUGH THE MUCK OF THE APPROPRIATIONS PROCESS PROCUREMENT AND PERSONNEL GUIDELINES YOU KNOW WHAT HAPPENS THEN INVESTMENT ISN'T SHAPED BY DEMAND OR WHERE PASSENGERS HAPPEN TO WANT TO FLY IT'S DRIVEN BY THE NEED TO SPLIT THE DIFFERENCE WITH FARMERS AND THE OLD FOLKS LOBBY AND WHETHER SOME CONGRESSIONAL COMMITTEE BARON FANCIES A NEW TOWER IN WEST VIRGINIA THE COMMISSION IS LEANING TOWARD THE FEDERAL RESERVE MODEL WITH FULL PRIVATIZATION WAITING UNTIL THE CLASSWARFARE MIASMA LIFTS OVER WASHINGTON IN THE MEANTIME FAA WOULD AT LEAST BE FREE TO COLLECT USER FEES FLOAT BONDS AND WORK OUT ITS CAPITAL SPENDING WITHOUT HAVING TO WHEEDLE AND PANDER TO THE CAPITOL SOLONS OPPONENTS WILL TRY TO SPOOK THE PUBLIC BY SUGGESTING THAT THE AIRLINES JUST WANT TO GET HOLD OF THE SYSTEM SO THEY CAN CUT CORNERS AND KILL THEIR CUSTOMERS THIS IS SILLY SAFETY TO THE FEDERAL GOVERNMENT IS ULTIMATELY JUST A POLITICAL ISSUE TO THE AIRLINES IT'S THE PRODUCT THEY SELL NATURALLY FLACK IS ALREADY BEING THROWN UP BY THE CONGRESSIONAL ACKACK BATTERY THEY'RE RELUCTANT TO LET THE FAA'S PORK AND PATRONAGE POTENTIAL SLIP FROM THEIR GRASP REP BOB CARR WHO RUNS A KEY SUBCOMMITTEE IN THE HOUSE IS WHINING LIKE A TURBOPROP AT MAXIMUM REV MAYBE HE SHOULD HAVE A TALK WITH AL GORE WHOSE REINVENTING GOVERNMENT BRIGADE HAS BEEN CASTING ADMIRING GLANCES AT THE COMMISSION'S IMPENDING HANDIWORK WHAT BETTER WAY TO BURNISH THOSE NEW DEMOCRAT CREDENTIALS THAN TO SET FAA'S 50000 EMPLOYEES FREE IN THE PRIVATE SECTOR WHILE GIVING TAXPAYERS CHEAPER MORE USERFRIENDLY GOVERNMENT 9307190056 930719 BUSINESS BRIEF UNIFI INC ACQUISITION OF PIONEER CORP IS SET THROUGH STOCK SWAP UNIFI INC SAID IT AGREED TO ACQUIRE PIONEER CORP A GROUP OF CLOSELY HELD YARN MANUFACTURERS BASED IN SANFORD NC IN A STOCK SWAP VALUED AT APPROXIMATELY 906 MILLION IN MAY UNIFI SAID THE TWO COMPANIES HAD BEGUN TALKS BUT TERMS HADN'T BEEN SET UNDER THE AGREEMENT PIONEER HOLDERS WILL RECEIVE 491 SHARES OF UNIFI COMMON FOR EACH SHARE OF PIONEER IN ALL UNIFI SAID IT EXPECTS TO ISSUE 2831000 SHARES IN THE MERGER OR 42 OF THE STOCK CURRENTLY OUTSTANDING IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE UNIFI CLOSED AT 32 DOWN 375 CENTS UNIFI A GREENSBORO NC PROCESSOR OF POLYESTER FIBERS HAD SALES OF 13 BILLION DURING ITS FISCAL YEAR ENDED JUNE 28 1992 THE COMPANY HAS SAID THAT THE PIONEER ACQUISITION WOULD ADD TO ITS SPUN COTTON AND SYNTHETIC YARN PRODUCTS 9307190055 930719 INTERNATIONAL EUROPEAN AID BANK HOPES AUDIT CHIEF'S DEPARTURE WILL END CHAOS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE TAXPAYERFUNDED BANK SET UP TO AID EASTERN EUROPE HOPES TO RESTORE ITS CREDIBILITY AFTER THE DEPARTURE OF FORMER PRESIDENT JACQUES ATTALI AND A PUBLIC AIRING OF ITS DIRTY LAUNDRY AN AUDIT REPORT RELEASED FRIDAY ON SPENDING AT THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT DIDN'T FIND ANY EVIDENCE OF FRAUD BUT WAS HIGHLY CRITICAL OF MR ATTALI AND THE BANK'S BOARD FOR FAILING TO CONTROL SPENDING ON THE BANK'S HEADQUARTERS BUILDING AND OTHER MATTERS BANK DIRECTORS WANT TO CONCLUDE THE MATTER BY DEPRIVING MR ATTALI OF HIS 147000 219000 SEVERANCE PAY IN RETURN FOR THE BANK'S DROPPING ADDITIONAL CLAIMS FOR EXPENSE MONEY AGAINST THE FREESPENDING FORMER PRESIDENT MR ATTALI LEFT THE BANK FRIDAY AND HIS DUTIES WERE ASSUMED TEMPORARILY BY RONALD FREEMAN THE AMERICAN FIRST VICE PRESIDENT FROM SALOMON BROTHERS INC WHO HEADS THE EBRD'S MERCHANTBANKING UNIT ATTALI GOING AND GOING NOW HAS TO BE THE BIGGEST SINGLE THING WE CAN DO TO RESTORE CREDIBILITY SAID WILLIAM CURRAN DIRECTOR FOR THE US WHICH HOLDS A 10 SHARE IN THE EBRD THE AUDIT REPORT ALSO HAS TO BRING CREDIBILITY BACK TO THE BOARD GETTING A NEW PRESIDENT ELECTED DISMISSING THE REMAINDER OF MR ATTALI'S CABINET STAFF AND REORGANIZING TOP MANAGEMENT ALSO WOULD HELP THE BANK GET BACK ON ITS FEET HE SAID CONSENSUS APPEARS TO BE BUILDING AMONG THE EUROPEANS TO BACK JACQUES DE LAROSIERE GOVERNOR OF THE BANQUE DE FRANCE AND FORMER MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND AS THE EBRD'S NEW PRESIDENT MR CURRAN SAID THE AUDIT OF THE EBRD PAINTS A PICTURE OF A FASTGROWING INSTITUTION STRUGGLING WITH BUDGETARY CONTROLS AND HEADED BY A PRESIDENT WHO HAD DIFFICULTY DISTINGUISHING BETWEEN PERSONAL AND BANK EXPENSES THE BANK'S 23 FULLTIME DIRECTORS AND ALTERNATES WHOSE SALARIES EXPENSES AND STAFF TAKE UP 12 OF THE BANK'S OPERATING BUDGET COULD HAVE BEEN MORE AGGRESSIVE IN ASKING QUESTIONS ABOUT SPENDING THE REPORT SAID BUT THE REPORT MAKES CLEAR THAT EVEN THE AUDIT COMMITTEE OF DIRECTORS HAD TROUBLE GETTING STRAIGHT ANSWERS FROM MR ATTALI AND HIS STAFF ON SPENDING MATTERS REFURBISHING THE BANK'S HEADQUARTERS ULTIMATELY COST ABOUT 662 MILLION MORE THAN THE ORIGINAL 53 MILLION APPROVED IN THE 1992 BUDGET BUT CLOSE TO THE BOARDAPPROVED INCREASED BUDGET OF 625 MILLION BUT IT INCLUDED SEVERAL EXTRAVAGANCES THAT DIRECTORS SEEMINGLY WEREN'T AWARE OF UNTIL THEY SAW THEM SUCH AS SHADED CARPETS COSTING 44 A SQUARE METER MORE THAN SEVEN TIMES WHAT UNSHADED CARPETS WOULD COST A SPECIALLY DESIGNED CEILING THAT MR ATTALI EXPRESSED HIS PREFERENCE FOR BUT SAID HE DIDN'T ORDER TO BE SELECTED MARBLE CLADDING INCLUDING THE FAMOUS LOBBY MARBLE COSTING 845000 SPECIAL GRAY GLASS FOR CONFERENCE ROOMS COSTING 471 A SQUARE METER AND MIRRORED CEILINGS COSTING 1 MILLION A NUMBER OF PURCHASES WERE MADE WITHOUT COMPETITIVE TENDER NOR WERE THE ARCHITECTS BERTHET AND POCHY CHOSEN THROUGH SUCH A PROCESS BERTHET AND POCHY WHICH WILL GET ROYALTIES FROM FURNITURE THEY DESIGNED FOR THE BUILDING HAD BEEN CONTACTED FOLLOWING A SUGGESTION IN 1991 BY MR ATTALI MOST DAMAGING IS A SECTION RELATING TO MR ATTALI'S PRIVATE PLANE TRAVEL HIS OFFICE ORDERED 50 OF THE 57 PRIVATE FLIGHTS OCCURRING SINCE 1991 AT A TOTAL COST OF 14 MILLION AND UNTIL THIS YEAR EXCLUSIVELY USED A PARISBASED COMPANY AIR ENTERPRISE NOT ONLY WAS AIR ENTERPRISE FAR MORE EXPENSIVE THAN MOST OTHER PRIVATE JET COMPANIES IT OFTEN FLEW EMPTY TO LONDON TO PICK UP MR ATTALI MR ATTALI GAVE THE BANK A 41733 CHECK TO REIMBURSE IT FOR SEVEN FLIGHTS BUT COOPERS & LYBRAND THE AUDITORS COULDN'T DETERMINE WHETHER THE FLIGHTS WERE OF A PRIVATE NATURE OR A MIX OF BANK AND PERSONAL BUSINESS THE REPORT SAID THE DECISION BY THE PRESIDENT TO UTILIZE A LARGE NUMBER OF CHARTERED FLIGHTS AT SUBSTANTIAL COST TO THE BANK AND FROM ONLY ONE SUPPLIER ILLUSTRATED BAD JUDGMENT THESE FLIGHTS APPEAR TO HAVE BEEN DRIVEN BY AN IMPRACTICAL AGENDA AND ARE A CONSEQUENCE OF AD HOC DECISION MAKING MR ATTALI ALSO RAN UP LARGE BILLS ON HIS CORPORATE CREDIT CARD THAT WERE OF A PERSONAL NATURE THE REPORT SAID BUT THE AUDIT COMMITTEE COULDN'T GET ANY SUPPORTING INVOICES THE HEFTY REPORT DOESN'T CLEAR UP ALL MATTERS SPENDING AT THE MOSCOW OFFICE WHICH WAS HEADED UNTIL RECENTLY BY A PROTEGE OF MR ATTALI'S SHOULD BE MONITORED WITH A FOLLOWUP AUDIT BY THE INTERNAL AUDITOR WITHIN THE NEXT SIX TO 12 MONTHS THE REPORT SAID 9307190054 930719 BUSINESS BRIEF FORD MOTOR CO NEW SUBCOMPACT SUCCESSOR TO FESTIVA IS NAMED ASPIRE FORD MOTOR CO SAID THE NAME OF ITS NEW SUBCOMPACT AUTOMOBILE IS ASPIRE REPLACING THE AUTO MAKER'S PREVIOUS ENTRY IN THE SMALLCAR SEGMENT THE FESTIVA DRIVER AND PASSENGER AIR BAGS WILL BE STANDARD ON THE MID1994 ASPIRE ANTILOCK BRAKES WILL BE OPTIONAL THE ASPIRE WILL BE PRICED TO BE THE CHEAPEST VEHICLE IN THE US OFFERING SUCH SAFETY EQUIPMENT THE ASPIRE WHICH WILL BE A SIGNIFICANTLY MODIFIED VERSION OF THE FESTIVA WILL COME IN THREEDOOR AND FIVEDOOR MODELS 9307190053 930719 BUSINESS BRIEF PICTURETEL CORP COMPANY POSTS LOWER NET SENDING STOCK DOWN 24 PICTURETEL CORP REPORTED NET INCOME OF 26 MILLION OR 17 CENTS A SHARE FOR THE SECOND QUARTER DOWN 21 FROM 33 MILLION OR 21 CENTS A SHARE A YEAR AGO WHEN NET WAS AIDED BY A CREDIT EXCLUDING THE EFFECT OF THE LOSSCARRYFORWARD CREDIT THE LATEST QUARTER'S EARNINGS WERE UP 18 ON HIGHER SALES OF THE DANVERS MASS COMPANY'S VIDEOPHONE SYSTEMS REVENUE WAS 442 MILLION UP 30 FROM THE 34 MILLION OF A YEAR AGO BUT ABOUT FLAT WITH THE PREVIOUS QUARTER ANALYSTS EXPECTED A BETTER SHOWING LEADING TO HEAVY SALES OF PICTURETEL STOCK FRIDAY IN OVERTHECOUNTER TRADING PICTURETEL CLOSED AT 1950 DOWN 6125 OR 24 FOR THE SIX MONTHS NET INCOME WAS 63 MILLION OR 40 CENTS A SHARE UP 27 FROM 61 MILLION OR 38 CENTS A SHARE IN THE LATEST HALF NET INCLUDED A 1 MILLION GAIN FROM CHANGES IN ACCOUNTING PRINCIPLES IN 1992'S FIRST HALF OPERATINGLOSS CREDITS BOOSTED NET BY 2 MILLION OR 13 CENTS A SHARE 9307190052 930719 CLINTON IS SAID TO BE SET TO FIRE FBI CHIEF SESSIONS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WILL PROBABLY FIRE FEDERAL BUREAU OF INVESTIGATION DIRECTOR WILLIAM SESSIONS THIS WEEK AN ADMINISTRATION OFFICIAL SAID AT A SATURDAY MEETING WITH ATTORNEY GENERAL JANET RENO IT WAS MADE CLEAR TO MR SESSIONS THAT HE WON'T BE STAYING ON THE JOB THE OFFICIAL SAID THE ONLY QUESTION NOW IS WHETHER MR SESSIONS DECIDES TO RESIGN OR IS FIRED THE OFFICIAL ADDED SO FAR MR SESSIONS HAS STEADFASTLY REFUSED TO QUIT THE FBI DIRECTOR IS MIDWAY THROUGH A 10YEAR TERM AND CAN BE FIRED ONLY BY THE PRESIDENT MR SESSIONS WAS CHARGED WITH ETHICAL VIOLATIONS IN A REPORT ISSUED IN THE FINAL DAYS OF THE BUSH ADMINISTRATION IT ACCUSED HIM AMONG OTHER THINGS OF MISUSING GOVERNMENT AIRCRAFT AND AUTOMOBILES FOR PERSONAL PURPOSES AND CHARGING THE GOVERNMENT FOR A FENCE AROUND HIS HOME THAT WAS NOT AS HE HAD BEEN WARNED ADEQUATE FOR SECURITY PURPOSES HE HAS FOUGHT THE CHARGES VIGOROUSLY AND IN SOME CASES OFFERED STRONG REBUTTAL EVIDENCE MR SESSIONS HAS CAST THE REPORT AS A POLITICAL DOCUMENT MEANT TO SMEAR HIM REGARDLESS OF THE CLINTON ADMINISTRATION'S VIEW OF THE CHARGES AGAINST MR SESSIONS IT HAS BEEN CLEAR FOR MONTHS THAT HIS DAYS AS FBI DIRECTOR ARE NUMBERED PRESIDENT CLINTON MET FRIDAY WITH A POSSIBLE SUCCESSOR TO MR SESSIONS US DISTRICT JUDGE LOUIS FREEH OF NEW YORK CITY THEIR MEETING WENT VERY WELL ACCORDING TO AN OFFICIAL FAMILIAR WITH THE SESSION THE OFFICIAL CAUTIONED HOWEVER THAT WHILE JUDGE FREEH IS THE LEADING CANDIDATE FOR THE JOB HE DOESN'T HAVE THE NOMINATION SEWN UP IN THE MEANTIME MR SESSIONS IS CONTINUING TO WORK DESPITE BREAKING HIS RIGHT ARM WHEN HE TRIPPED AFTER LEAVING THE MEETING WITH MS RENO AFTER SPENDING SATURDAY NIGHT IN THE HOSPITAL HE RETURNED HOME YESTERDAY AND HAD A BRIEFCASE FULL OF WORK SAID FBI SPOKESMAN JOHN COLLINGWOOD WHO ADDED THAT MR SESSIONS PLANS TO BE IN HIS OFFICE TODAY 9307190051 930719 ALLIEDSIGNAL FEELS AIRTRAVEL TRENDS WILL INCREASE DEMAND FOR ITS AVIONICS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL MORRISTOWN NJ THE COMMERCIAL AIRLINE INDUSTRY MIGHT BE IN A SLUMP BUT ALLIEDSIGNAL INC BELIEVES THAT WITH ITS PROPOSED ACQUISITION OF SUNDSTRAND DATA CONTROL IT IS POISED TO REAP THE BENEFITS OF A BOOM IN COMMERCIALAVIONICS BUSINESS WE EXPECT THE DEMAND FOR AIRLINE TRAVEL WILL CONTINUE TO GROW AT A RATE OF ABOUT 5 WHICH WILL SUSTAIN THE UNDERLYING DEMAND FOR AVIONICS SAID DANIEL P BURNHAM PRESIDENT OF ALLIEDSIGNAL'S AEROSPACE UNIT COMMERCIAL AVIONICS ARE THE VARIOUS ELECTRONIC COMPONENTS AND COMPUTERS THAT HELP TO GUIDE THE FLIGHT OF AN AIRCRAFT THE 195 MILLION ACQUISITION FROM SUNDSTRAND CORP OF ROCKFORD ILL WILL BOOST ALLIEDSIGNAL'S COMMERCIALAVIONICS REVENUE TO 600 MILLION FROM 400 MILLION FURTHERMORE IT IS EXPECTED TO BE A SOURCE OF HIGHER SALES AND EARNINGS FROM THE BEGINNING MR BURNHAM SAID BUT ALONG WITH OTHER BUSINESSES HURT BY THE WEAK AIRLINE INDUSTRY ALLIEDSIGNAL EXPECTS BOTH ITS CURRENT AVIONICS GROUP AND THE SUNDSTRAND UNIT TO POST LOWER REVENUE THIS YEAR MR BURNHAM SAID THE ACQUISITION WILL ALLOW THE COMPANY TO SAVE 10 MILLION IN 1994 BY ELIMINATING REDUNDANT ENGINEERING AND DISTRIBUTION EXPENSES THE SAVINGS WILL INCREASE AFTER 1994 HE ADDED SUNDSTRAND DATA CONTROL REDMOND WASH MAKES COCKPITVOICE AND FLIGHTDATA RECORDERS AND GROUNDPROXIMITY AND WINDSHEAR WARNING COMPUTERS AMONG OTHER THINGS THE ACQUISITION ANNOUNCED LAST WEEK AND SLATED TO CLOSE IN SEPTEMBER WILL EXTEND ALLIEDSIGNAL'S MARKET SHARE IN AVIONICS SALES MADE DIRECTLY TO AIRLINESAS OPPOSED TO SALES TO AIRCRAFT MANUFACTURERS OR OTHERS TO 33 FROM 25 MR BURNHAM SAID ALLIEDSIGNAL'S MAIN COMPETITOR IN THE FIELD ROCKWELL INTERNATIONAL CORP OF SEAL BEACH CALIF HAS 40 OF THE MARKET ACCORDING TO MR BURNHAM THE SUNDSTRAND UNIT'S PRODUCTS COMPLEMENT ALLIEDSIGNAL'S FOR INSTANCE ALLIEDSIGNAL MAKES RADAR DESIGNED TO PREVENT AIR COLLISIONS BY WARNING PILOTS OF OTHER AIRCRAFT IN THE VICINITY WHILE SUNDSTRAND MAKES GROUND PROXIMITY CENTERS WHICH PREVENT AIRCRAFT FROM COLLIDING WITH A MOUNTAIN MR BURNHAM SAID OUR PRODUCTS ARE COMPLEMENTARY AND BETWEEN US WE'RE ALL OVER THE AIRPLANE MR BURNHAM SAID THE SHORTTERM HURDLE FACING HIS COMPANY IS THE DIFFICULT AND TURBULENT TIME FACED BY MOST AIRLINES TODAY WHICH SEE TRAFFIC INCREASING BUT CONTINUE TO LOSE MONEY IN THE LONG RUN HOWEVER HIGHER TRAFFIC CONGESTION IN AIR CORRIDORS AND MORE STRINGENT SAFETY REGULATIONS COMBINED WITH A PUSH AMONG AIRLINES TO LOWER MAINTENANCE COSTS WILL BOOST THE DEMAND FOR SOPHISTICATED AVIONICS PILOTS WANT THEIR LIVES MADE SIMPLER MR BURNHAM SAID THERE'S A TREMENDOUS AMOUNT OF INFORMATION IN A COCKPIT AND SAFETY COST AND CONVENIENCE ARE ALL ISSUES DRIVING THE DATAMANAGEMENT BUSINESS AS IT IS CALLED ALLIEDSIGNAL HAS SAID THAT IT EXPECTS THE DATAMANAGEMENT MARKET TO GROW AT A COMPOUNDED ANNUAL RATE WELL ABOVE 15 OVER THE NEXT FIVE YEARS THE SUNDSTRAND ACQUISITION WILL ALLOW US TO EXPAND OUR PRODUCT OFFERINGS AND PENETRATE FURTHER INTO THE COMMERCIALAVIONICS MARKET MR BURNHAM SAID IN 1992 ALLIEDSIGNAL'S AVIONICS BUSINESS CONTRIBUTED 22 OF THE COMPANY'S 494 BILLION AEROSPACE SEGMENT 9307190050 930719 BUSINESS BRIEF FOURTH FINANCIAL CORP BANKING COMPANY AGREES TO ACQUIRE GREAT SOUTHERN FOURTH FINANCIAL CORP OF WICHITA KAN EXTENDING ITS AGGRESSIVE EXPANSION INTO MISSOURI SAID IT AGREED TO BUY GREAT SOUTHERN BANCORP OF SPRINGFIELD MO FOR STOCK VALUED AT 876 MILLION FOURTH FINANCIAL SAID IT WOULD EXCHANGE 1668 SHARES OF ITS STOCK FOR EACH SHARE OF GREAT SOUTHERN INCLUDING SHARES UNDER OPTION FOR A TOTAL OF 285 MILLION FOURTH FINANCIAL SHARES THE ACQUISITION IS EXPECTED TO CLOSE IN THE FIRST QUARTER OF 1994 THE BANKING COMPANY SAID IN NATIONAL OVERTHECOUNTER TRADING FRIDAY FOURTH FINANCIAL SHARES CLOSED AT 3075 UNCHANGED AND GREAT SOUTHERN SHARES GAINED 1 TO 29 THE ANNOUNCEMENT CAME AFTER THE END OF TRADING FOURTH FINANCIAL OPERATES 103 OFFICES IN KANSAS AND OKLAHOMA AND HAS ASSETS OF 61 BILLION THE COMPANY HAS THREE OTHER ACQUISITIONS PENDING IN OKLAHOMA GREAT SOUTHERN WITH ASSETS OF 515 MILLION AND 25 OFFICES IN SOUTHWEST AND CENTRAL MISSOURI WILL BE OPERATED UNDER THE NAME BANK IV MISSOURI FOURTH FINANCIAL SAID 9307190049 930719 WHAT'S NEWS BUSINESS AND FINANCE TROUBLED AIRLINES WOULD BE SUBJECT TO TIGHTER GOVERNMENT REGULATION UNDER RECOMMENDATIONS A FEDERAL PANEL STUDYING THE INDUSTRY IS MOVING TOWARD PANEL MEMBERS ARE SEEKING AN INDEPENDENT AGENCY THAT COULD PROHIBIT AN AILING AIRLINE FROM LAUNCHING FARE WARS TO RAISE CASH PHILIP MORRIS IS CONSIDERING MAKING ITS MARLBORO PRICE CUT PERMANENT WHICH WOULD PROBABLY FORCE OTHER PREMIUM BRANDS TO FOLLOW SUIT AND FURTHER HURT CIGARETTEINDUSTRY PROFITS OTHER OPTIONS ARE ALSO UNDER CONSIDERATION CALIFORNIA PASSED A PACKAGE OF MEASURES THAT IS EXPECTED TO CUT BY AT LEAST 15 BILLION THE 11 BILLION ANNUALLY THAT CALIFORNIA EMPLOYERS CURRENTLY PAY OUT IN WORKERS' COMPENSATION CASES THE SAVINGS WOULD COME IN PART BY MAKING IT MUCH TOUGHER TO CLAIM STRESS AS A WORKRELATED INJURY INDUSTRIAL PRODUCTION FELL 02 LAST MONTH SIGNALING THAT THE MANUFACTURING SECTOR IS SHOWING NO SIGNS OF EMERGING FROM ITS PROTRACTED SLUMP OUTPUT FOR MAY WAS FLAT DOWN FROM AN INITIAL REPORT OF A SLIGHT INCREASE WILLIAM MCDONOUGH WILL SUCCEED E GERALD CORRIGAN AS PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK HE ISN'T EXPECTED TO PLAY A MAJOR ROLE IN THE FEDERAL RESERVE BOARD'S DELIBERATIONS ON MONETARY POLICY LIZ CLAIBORNE INC SAID PROFIT DROPPED 21 FOR THE LATEST QUARTER AND THAT MORE TROUBLE IS AHEAD THE APPAREL MAKER'S ANNOUNCEMENT COMING A DAY AFTER NEWS THAT VICE CHAIRMAN JAY MARGOLIS RESIGNED DROVE DOWN ITS STOCK 6875 OR 23 TO 2275 MERRILL LYNCH PLANS TO AUCTION OFF ITS 1980S LIMITED PARTNERSHIPS IN RARE GOLD AND SILVER COINS AND ANCIENT ART THE UNITS' INVESTORS ARE UNLIKELY TO RECOUP THEIR LOSSES IN THE LIQUIDATION VOLKSWAGEN SHARES FELL ADDING TO MOUNTING PRESSURE ON THE GERMAN CAR MAKER AMID INDUSTRIAL ESPIONAGE ALLEGATIONS SURROUNDING ITS CHIEF COSTCUTTER J IGNACIO LOPEZ DE ARRIORTUA IBM PLANS TO OFFER A FREE OR LOWPRICED COMPUTER COMPACT DISK THAT WILL LET CONSUMERS BROWSE THROUGH A VARIETY OF SOFTWARE FROM HOME AND BUY ONLY THE PROGRAMS THEY WANT FUJITSU WAIVED ITS RIGHT TO STUDY NEXTGENERATION MAINFRAME SOFTWARE DEVELOPED BY IBM A MOVE EXPECTED TO SAVE FUJITSU TENS OF MILLIONS OF DOLLARS AMID COST CUTS TO STEM RECENT LOSSES CALIFORNIA REGULATORS PLAN TO ALLOW LONGDISTANCE COMPANIES TO COMPETE AGAINST PACIFIC BELL GTE AND OTHER LOCAL PHONE COMPANIES IN THE 2 BILLIONPLUS REGIONAL LONGDISTANCE MARKET GM BACKED AWAY FROM AN ATTEMPT TO GET THE US TO PAY ITS WORKERS 150 MILLION IN UNEMPLOYMENT BENEFITS DURING ITS TWOWEEK SUMMER CLOSING AFTER COMPLAINTS FROM FEDERAL OFFICIALS THE WHITE HOUSE BUDGET CHIEF SAID THE ADMINISTRATION STILL PLANS TO CUT THE DEFICIT BY 500 BILLION OVER FIVE YEARS AND IS FOCUSING ON A GASOLINE TAX INSTEAD OF A BTU TAX TO HELP DO SO BONDS LEHMAN BROTHERS TREASURY INDEX 537256 UP 1019 COMMODITIES OIL 1721 A BARREL OFF 46 CENTS DOW JONES FUTURES INDEX 12678 UP 053 SPOT INDEX 12262 OFF 009 DOLLAR 10755 YEN OFF 050 17160 MARKS OFF 00045 9307190048 930719 BUSINESS BRIEF CHAMPION INTERNATIONAL CORP LOSS FOR THE SECOND QUARTER OF 223 MILLION IS POSTED CHAMPION INTERNATIONAL CORP POSTED A WIDENED SECONDQUARTER PERSHARE LOSS REFLECTING A SLOWERTHANEXPECTED ECONOMIC RECOVERY THAT HAS KEPT PAPER PRICES LOW THE STAMFORD CONN PAPER PACKAGING AND WOOD PRODUCTS COMPANY'S LOSS FOR THE PERIOD WAS 223 MILLION OR 31 CENTS A SHARE COMPARED WITH YEAREARLIER PROFIT OF 2 MILLION OR A LOSS OF FIVE CENTS A SHARE AFTER PAYMENT OF PREFERRED DIVIDENDS SALES INCREASED 22 TO 126 BILLION FROM 123 BILLION THE COMPANY'S PAPER BUSINESS POSTED A WIDENED OPERATING LOSS OF 359 MILLION COMPARED WITH 106 MILLION IN THE YEAREARLIER PERIOD THE COMPANY SAID IT IS ENCOURAGED BY RECENT PRICE INCREASES IN UNCOATED FREE SHEET AND COATED GROUNDWOOD HOWEVER WE CONTINUE TO FEEL THE EFFECT OF LOWER PRICES FOR PULP AND SOME PAPER GRADES PARTICULARLY NEWSPRINT FOR THE SIX MONTHS THE COMPANY HAD A LOSS OF 504 MILLION OR 69 CENTS A SHARE COMPARED WITH A LOSS OF 4591 MILLION OR 510 A SHARE INCLUDING A CHARGE OF 454 MILLION FOR CUMULATIVE EFFECTS OF ACCOUNTING CHANGES SALES FOR THE PERIOD ROSE 38 TO 252 BILLION FROM 243 BILLION 9307190047 930719 BUSINESS BRIEF DELTA QUEEN STEAMBOAT CO LOSS OF REVENUE FROM FLOOD MAY BE AS MUCH AS 1 MILLION DELTA QUEEN STEAMBOAT CO NEW ORLEANS SAID IT HAS LOST AS MUCH AS 1 MILLION IN REVENUE SO FAR FROM FLOODRELATED PASSENGER CANCELLATIONS THE STEAMBOAT CRUISE OPERATOR REROUTED BOATS BECAUSE SEVERE FLOODING PROMPTED THE COAST GUARD TO CLOSE THE UPPER MISSISSIPPI RIVER TWO SEVENDAY CRUISES BETWEEN ST LOUIS AND ST PAUL MINN HAVE BEEN REROUTED TO CHATTANOOGA TENN DELTA QUEEN SAID AND SOME PASSENGERS HAVE CANCELED OR POSTPONED VACATIONS DELTA QUEEN SAID IT WAS UNABLE TO ESTIMATE THE EXACT IMPACT ON REVENUE BUT PUT IT BETWEEN 500000 AND 1 MILLION CURRENTLY FOR THE QUARTER ENDED SEPT 30 1992 THE COMPANY REPORTED NET INCOME OF 22 MILLION OR 19 CENTS A SHARE ON REVENUE OF 169 MILLION CRUISES ON THE LOWER MISSISSIPPI SET TO BEGIN AFTER TODAY SHOULDN'T BE AFFECTED BY FLOODING ALTHOUGH DELTA QUEEN SAID IT COULDN'T GAUGE WHETHER THE PUBLIC'S GENERAL CONCERN ABOUT THE RIVER WILL AFFECT OCCUPANCY LEVELS 9307190046 930719 BUSINESS BRIEF SUPERCUTS INC PERSHARE NET RISE EXPECTED TO BE POSTED FOR 2ND PERIOD SUPERCUTS INC FEELS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT IT WILL POST EARNINGS OF 19 CENTS TO 20 CENTS A SHARE FOR THE SECOND QUARTER ACCORDING TO DAVID LIPSON THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE SAN FRANCISCOBASED CHAIN OF HAIRCUTTING SHOPS HAS ABOUT 10 MILLION SHARES OUTSTANDING INDICATING A PROFIT OF ROUGHLY 19 MILLION TO 2 MILLION IN THE YEAREARLIER PERIOD SUPERCUTS HAD NET INCOME OF 16 MILLION OR 17 CENTS A SHARE ON REVENUE OF 88 MILLION MR LIPSON DECLINED TO COMMENT ON EXPECTED REVENUE FOR THE LATEST QUARTER MR LIPSON ATTRIBUTED THE IMPROVED RESULTS TO INCREASED ACCEPTANCE OF THE COMPANY'S LOWCOST HAIRCUTS ABOUT 90 OF SUPERCUTS' STORES CHARGE 9 A CUT AT THE QUARTER'S END THE COMPANY OPERATED 830 SHOPS 125 OF THEM COMPANYOWNED AND THE REST FRANCHISEES SUPERCUTS PLANS TO OPEN 115 TO 125 STORES IN 1993 ADDING TO THE 766 IT OPERATED AT THE END OF LAST YEAR 9307190045 930719 BUSINESS BRIEF PETRIE STORES CORP LOSSES FOR FISCAL 2ND PERIOD HALF SEEN LIKELY BY RETAILER PETRIE STORES CORP SECAUCUS NJ SAID AN UNCERTAIN ECONOMY AND FALTERING SALES PROBABLY WILL RESULT IN A SECONDQUARTER LOSS AND PERHAPS A DEFICIT FOR THE FIRST SIX MONTHS OF FISCAL 1994 THE WOMEN'S APPAREL SPECIALTY RETAILER SAID SALES AT STORES OPEN MORE THAN ONE YEAR A KEY BAROMETER OF A RETAIL CONCERN'S STRENGTH DECLINED 25 IN MAY JUNE AND THE FIRST WEEK OF JULY THE COMPANY OPERATES 1714 STORES IN FISCAL 1993'S SECOND QUARTER ENDED LAST AUG 1 THE COMPANY HAD NET INCOME OF 15 MILLION OR THREE CENTS A SHARE ON REVENUE OF ABOUT 355 MILLION IN THE FIRST SIX MONTHS OF FISCAL 1993 NET WAS 84 MILLION OR 18 CENTS A SHARE ON REVENUE OF ABOUT 678 MILLION DIRECTORS ALSO APPROVED THE ELECTION OF ALLAN LAUFGRABEN 54 YEARS OLD AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AND PETER A LEFT 43 AS CHIEF OPERATING OFFICER MILTON PETRIE 90YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SINCE THE COMPANY WAS FOUNDED IN 1932 WILL CONTINUE AS CHAIRMAN 9307190044 930719 TECHNOLOGY BRIEF COMSAT CORP RISE IN PROFIT OF NEARLY 20 IS POSTED FOR SECOND QUARTER COMSAT CORP SAID SECONDQUARTER NET INCOME ROSE NEARLY 20 ON HIGHER REVENUE WITH EACH OF ITS BUSINESSES SHOWING POSITIVE OPERATING PROFIT FOR THE QUARTER THE BETHESDA MD PROVIDER OF COMMUNICATIONS SERVICES TO TELECOMMUNICATIONS CARRIERS INDUSTRY GOVERNMENT AND OTHER ORGANIZATIONS SAID NET INCOME WAS 202 MILLION OR 50 CENTS A SHARE COMPARED WITH 169 MILLION OR 43 CENTS A SHARE A YEAR EARLIER PERSHARE AMOUNTS IN BOTH PERIODS WERE RESTATED TO REFLECT A 2FOR1 STOCK SPLIT PAID JUNE 1 REVENUE ROSE NEARLY 16 TO 1541 MILLION FROM 1332 MILLION COMSAT SAID IT IS LINED UP TO MEET OUR GOAL OF DOUBLEDIGIT EARNINGS GROWTH IN 1993 IN 1992 THE COMPANY EARNED 429 MILLION OR 218 A SHARE INCLUDING A CHARGE OF 234 MILLION OR 119 A SHARE REVENUE FROM COMSAT'S INTERNATIONAL COMMUNICATIONS BUSINESS GREW 4 TO 635 MILLION WHILE REVENUE FROM THE MOBILE COMMUNICATIONS BUSINESS ROSE 30 TO 472 MILLION THE VIDEO ENTERPRISES SEGMENT POSTED 24 GROWTH IN REVENUE TO 231 MILLION 9307190043 930719 TECHNOLOGY BRIEF APPLIED MAGNETICS CORP WORK FORCE IN CALIFORNIA TO BE CUT BY 120 PEOPLE APPLIED MAGNETICS CORP SAID IT WILL LAY OFF ABOUT 120 WORKERS AT ITS FACILITIES IN GOLETA CALIF AND SANTA MARIA CALIF THE WORKERS REPRESENT ABOUT 15 OF THE COMPANY'S WORLDWIDE WORK FORCE OF 8000 TWO WEEKS AGO 20 EMPLOYEES WERE LAID OFF AT THE COMPANY'S SANTA MONICA CALIF FACILITY BILL ANDERSON CHIEF EXECUTIVE OF THE MAKER OF MAGNETIC RECORDING HEADS CITED DIFFICULTIES ON THE PART OF APPLIED MAGNETICS'S CUSTOMERS MOSTLY IN THE DATASTORAGE SEGMENT OF THE COMPUTER INDUSTRY AS THE REASON FOR THE CUTS OUR CUSTOMERS ARE GOING THROUGH TUMULTUOUS TIMES WITH PRICECUTTING AND OVERCAPACITY HE SAID 9307190042 930719 DISABILITIES ACT HELPS BUT NOT MUCH WORKPLACE DISABLED PEOPLE AREN'T GETTING MORE JOB OFFERS BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO ART DOW WENT TO ANOTHER JOB INTERVIEW RECENTLY AND AS USUAL HE MADE A GRAND ENTRANCE THE INTERVIEWER'S EYES WENT STRAIGHT TO MY CRUTCHES SAYS THE 45YEAROLD SALESMAN YOU COULD TELL SHE WAS FLOORED MR DOW WHO PROPELS HIMSELF FORWARD BY SWINGING HIS LEGS BETWEEN TWO METAL CANES SAYS HIS POLIORELATED HANDICAP HAS LOCKED HIM OUT OF JOB OPPORTUNITIES FOR YEARS I'VE BEEN ON CRUTCHES A LONG TIME HE GRUMBLES AND I CAN SMELL DISCRIMINATION A MILE AWAY A YEAR AGO THE AMERICANS WITH DISABILITIES ACT TOOK AIM AT THAT PROBLEM THE LAW BANS DISCRIMINATION AGAINST THE DISABLED AND REQUIRES BUSINESSES WITH 25 OR MORE EMPLOYEES TO PROVIDE REASONABLE ACCOMMODATIONS FOR QUALIFIED DISABLED WORKERS AND JOB APPLICANTS PENALTIES CAN REACH 500000 AND THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SAYS 11500 CHARGES HAVE BEEN FILED SO FAR BUT WHILE WHEELCHAIR RAMPS AND AUTOMATIC DOORS ARE APPEARING IN RESTAURANTS AND OFFICES THE LEGISLATION DOESN'T APPEAR TO BE HELPING MR DOW OR MANY OTHER DISABLED PEOPLE LAND JOBS AS THE LAW APPROACHES ITS FIRST ANNIVERSARY THE PERCENTAGE OF THE ESTIMATED 224 MILLION PEOPLE WITH A WORK DISABILITY WHO ARE EMPLOYED STILL HOVERS NEAR LAST YEAR'S 29 ACCORDING TO A SURVEY BY THE NATIONAL CENTER FOR DISABILITY SERVICES THE JOB ACCOMMODATION NETWORK WHICH TRACKS NATIONWIDE HIRING TIED TO THE ACT FROM WEST VIRGINIA UNIVERSITY REPORTS FLUCTUATING EMPLOYMENT TRENDS SINCE THE LAW TOOK EFFECT HIRING SLACKED OFF SLIGHTLY LATE LAST YEAR WHEN 5 OF THOSE SURVEYED REPORTED HIRING A DISABLED PERSON AND WHILE HIRING ROSE TO 10 IN MARCH NETWORK OFFICIALS EXPECT ANOTHER DECREASE FOR THE SECOND QUARTER OF 1993 WHAT'S THE PROBLEM EXPERTS CITE EVERYTHING FROM A WEAK JOB MARKET TO WIDESPREAD MISINFORMATION ABOUT THE LAW HUMAN RESOURCE DIRECTORS COMPLAIN THE ACT HAS PUT ADDITIONAL PRESSURE ON THE JOBINTERVIEWING PROCESS WHILE ADVOCATES FOR THE DISABLED INSIST THAT DISCRIMINATION STILL LINGERS IN PERSONNEL OFFICES IN ADDITION THE LAW DOESN'T REQUIRE EMPLOYERS TO HIRE DISABLED WORKERS NOR DOES IT SET A DEADLINE FOR INSTALLING HANDICAPPED ACCOMMODATION FACILITIES REMEDY MUST BE SOUGHT IN COURT OR AT THE EEOC BOTH OFTEN LENGTHY PROCESSES EMPLOYMENT EXPERTS ALSO CONTEND THAT REVAMPING HIRING PRACTICES IS A BIGGER CHORE THAN ANYONE ANTICIPATED YOU CAN PUT IN A RAMP AND YOU CAN MAKE SURE YOUR MENUS ARE IN BRAILLE SAYS DEBORAH KAPLAN OF THE WORLD INSTITUTE ON DISABILITIES BUT THAT'S NOTHING COMPARED TO JOB RESTRUCTURING ONE THING IS CLEAR WHEN THE NEW LAW DOES WORK IT CAN CHANGE LIVES ED GRAVES A 40YEAROLD CONSULTANT IN CHICAGO TESTED POSITIVE FOR THE AIDS VIRUS LAST YEAR BECAUSE OF THE NEW LAW HE SAYS HE DISCLOSED HIS ILLNESS TO RECRUITERS WITHOUT FEAR OF DISCRIMINATION IN JANUARY HE STARTED A NEW JOB WITH A CHICAGO INDEPENDENT LIVING CENTER THE LAW ALLOWED ME TO GRAB THE BULL BY THE HORNS HE SAYS BUT THAT STRATEGY HASN'T WORKED FOR EVERYONE LYNN WATTS A BERKELEY CALIF WORD PROCESSOR WHO IS BLIND SAYS SHE LOST AN INTERVIEW OPPORTUNITY LAST MONTH BECAUSE SHE MENTIONED HER DISABILITY ON THE TELEPHONE THE MAN SAID I COULDN'T DO THE COMPUTER WORK SAYS MS WATTS WHO HAS BEEN UNEMPLOYED FOR MORE THAN A YEAR WHEN I TOLD HIM I HAD EQUIPMENT TO HELP ME I COULD JUST FEEL HIM SQUIRMING SUCH SITUATIONS ARE COMMON ACCORDING TO DISABLED PEOPLE SEEKING WORK MANY RECRUITERS FEAR THE COSTS OF PROVIDING ACCOMMODATIONS EVEN THOUGH MOST AIDS SUCH AS SPECIAL PHONE LINES FOR THE HEARING IMPAIRED AND WHEELCHAIR RAMPS COST LESS THAN 500 THE DISABILITIES LAW ALSO MAKES AN EXCEPTION FOR ACCOMMODATIONS THAT IMPOSE AN UNDUE BURDEN ON THE EMPLOYER BUT IT'S SIMPLY EASIER TO SAY SEND SOMEONE ELSE IN FOR THAT INTERVIEW' CONTENDS BARBARA JUDY PROJECT MANAGER FOR THE JOB ACCOMMODATION NETWORK AS A RESULT MANY DISABLED JOB SEEKERS HIDE THEIR DISABILITIES UNTIL THE LAST POSSIBLE MOMENT OFTEN SURPRISING RECRUITERS WHEN THEY SHOW UP AT A JOB INTERVIEW THE RECRUITERS GET SCARED SAYS KIM DUDLEY A STAFFING SPECIALIST AT GMAC MORTGAGE CORP ELKIN PARK PA THEY DON'T KNOW HOW TO REACT AND YOU CAN TELL BECAUSE THEY START SWEATING IN OTHER SITUATIONS RECRUITERS FALL PREY TO MISCONCEPTIONS ABOUT A DISABLED PERSON'S ABILITY TO WORK KATHI PUGH A SAN FRANCISCO ATTORNEY WHO IS A QUADRIPLEGIC SAYS AN INTERVIEWER ONCE PATTED HER KNEE AND SAID DON'T WORRY DEAR I KNOW PLENTY OF HANDICAPPED PEOPLE WHO'VE MADE A LOT OF THEMSELVES YOU'LL DO JUST FINE MS PUGH WHO AT THE TIME WAS A TOP LAW STUDENT AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY REPLIED I'VE ALREADY MADE SOMETHING OF MY LIFE THEN SHE SAYS SHE LEFT I FIGURED THE INTERVIEW WAS PRETTY MUCH OVER AT THAT POINT THE NEW LAW ATTEMPTS TO PRECLUDE SUCH SITUATIONS BY PROHIBITING DISCUSSION OF DISABILITIES IN JOB INTERVIEWS BUT OBSERVERS SAY THE BAN STRAINS THE ALREADY TENSE RECRUITERCANDIDATE RELATIONSHIP INTERVIEWERS OFTEN HESITATE TO LOOK INTO A DISABLED PERSON'S HISTORY FOR FEAR OF HITTING A SORE SPOT AS MS PUGH SAYS IT HAS PUT A DAMPER ON THE DIALOGUE THEY KNOW THEY CAN'T ASK ABOUT YOUR DISABILITY SO THE SUBJECT IS NEVER BROUGHT UP AND THEY ASSUME THE WORST BUT THE BASIC PROBLEM CONTINUES TO BE DISCRIMINATION IN THE JOB MARKET DISABLED PEOPLE COMPLAIN THAT EMPLOYERS CAN EASILY MANEUVER AROUND THE NEW LAW BY SIMPLY CLAIMING A CANDIDATE IS UNDERQUALIFIED THERE IS JUST THIS MINDSET AGAINST US SAYS PAT JOHNSON DIRECTOR OF THE JEFFERSON PARISH OFFICE FOR CITIZENS WITH DISABILITIES IN NEW ORLEANS MS JOHNSON WHO USES A WHEELCHAIR ADDS THEY FEEL THAT IF YOU'RE IN A WHEELCHAIR IT NOT ONLY AFFECTS YOUR BODY IT AFFECTS YOUR BRAIN ADVOCATES FOR THE DISABLED STRESS HOWEVER THAT COMPANIES AREN'T THE ONLY ONES TO BLAME FOR THE NEW LAW'S LACK OF EFFECT DISABLED PEOPLE OFTEN CHOOSE TO STAY OUT OF THE LABOR FORCE IN PART TO KEEP THEIR FEDERAL SUPPLEMENTAL SECURITY INCOME OR THEIR SOCIAL SECURITY DISABILITY INSURANCE PROGRAMS THAT ARE CANCELED WHEN RECIPIENTS FIND LONGTERM JOBS AND SOME COMPANIES' HEALTH INSURANCE POLICIES DON'T COVER PREEXISTING CONDITIONS OR DURABLE MEDICAL GOODS SUCH AS WHEELCHAIRS I CAN UNDERSTAND IT SAYS A SOCIAL SECURITY ADMINISTRATION SPOKESWOMAN SOME OF THESE PEOPLE ARE DRAWING A PRETTY HEFTY CHECK TOM BELL AN UNEMPLOYED COMPUTER PROGRAMMER WHO LIVES IN LEWISTOWN PA HAS STRUGGLED WITH THE DILEMMA SINCE HE WAS LAID OFF EARLIER THIS YEAR IT SEEMS FOOLISH FOR ME TO ACCEPT EMPLOYMENT UNLESS THE PAY IS SUBSTANTIAL HE SAYS WHAT'S MORE SOME PEOPLE WITH DISABILITIES EXPECT MORE FROM THE DISABILITIES ACT THAN IT ACTUALLY PROMISES SOME BELIEVE THEIR EMPLOYERS ARE REQUIRED TO PROVIDE DAILY TRANSPORTATION OR PERSONAL ASSISTANTS MS JUDY THE PROJECT MANAGER FOR THE JOB ACCOMMODATION NETWORK RECALLS ONE DISABLED MAN WHO CALLED AND WANTED TO KNOW WHERE THE DENTIST WAS WHO WOULD CLEAN HIS TEETH FOR FREE THAT ISN'T SURPRISING TO MOST DISABLED ADVOCATES PEOPLE WITH DISABILITIES HAVE BEEN TAUGHT TO BELIEVE THEY ARE SPECIAL EXPERTS SAY AND SOME COME TO EXPECT PREFERENTIAL TREATMENT WITH THE ACT THEY THINK THEIR SHIP HAS COME IN SAYS JOHN MILLER VICE PRESIDENT OF A REHABILITATION CENTER IN HARRISBURG PA THERE ARE SIGNS THAT THE LAW IS CREATING AWARENESS NEARLY THREE OF FOUR CORPORATE TRAINING EXECUTIVES SAY THEY HAVE INITIATED SOME TRAINING RELATED TO THE LAW ACCORDING TO THE TRAINING DIRECTOR'S FORUM NEWSLETTER BUT MORE THAN AWARENESS IS NEEDED TO CLOSE THE HIRING AND DISCRIMINATION GAP SAYS MS DUDLEY OF GMAC MORTGAGE HOW WILL SHE KNOW THE LAW HAS MADE A DIFFERENCE WHEN I SEE MORE DISABLED PEOPLE WHO ARE CEOS OF COMPANIES AND NOT JUST THE MARCH OF DIMES GIRLS SHE SAYS PROHIBIT AN EMPLOYER FROM INQUIRING INTO A JOB APPLICANT'S DISABILITY WITH QUESTIONS CONCERNING SUCH AREAS AS DEFINE A QUALIFIED DISABLED WORKER AS ONE WHO CAN PERFORM THE ESSENTIAL FUNCTIONS OF A JOB WITH OR WITHOUT REASONABLE ACCOMMODATION SEE RELATED STORY LAW DOES HELP SOME MANAGERS TO MOVE AHEAD WSJ JULY 19 1993 9307190041 930719 INTERNATIONAL NEW ARRESTS ARE MADE IN PROBE OF SOUTH KOREA'S WEAPONS DEALS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL AN INVESTIGATION INTO SOUTH KOREA'S WEAPONS PROCUREMENT PROCESS CONTINUES TO UPEND THE COUNTRY'S MILITARY ELITE AND PARALYZE ONE OF THE WORLD'S LARGEST ARMS MARKETS AS NEW ARRESTS ARE MADE THE WIDERANGING INQUIRY HAS TOPPLED MORE THAN 30 SENIOR MILITARY OFFICERS AND ENSNARED SEVERAL TOP INDUSTRIALISTS WHOSE SUBORDINATES ARE SUSPECTED OF OFFERING BRIBES IN EXCHANGE FOR DEFENSE CONTRACTS WHILE FOREIGNMADE WEAPONS ARE INVOLVED IN SEVERAL OF THE DEALS UNDER SCRUTINY SO FAR THE FOCUS HAS BEEN ON KOREAN AGENTS WHO HANDLED THE TRANSACTIONS RATHER THAN THE FOREIGN ARMS CONTRACTORS THEMSELVES BUT AT LEAST THREE MAJOR PROJECTS TENDERED TO US COMPANIES HAVE BEEN STALLED IN THE HAZE OF UNCERTAINTY SURROUNDING THE DEFENSE MINISTRY FOR SOMEONE TRYING TO DO BUSINESS IT'S ALL COME TO A STOP SAYS A REPRESENTATIVE OF THE KOREAN ARM OF A US DEFENSE CONTRACTOR WHO REQUESTED ANONYMITY EVERYONE AT THE MINISTRY IS DEATHLY AFRAID TO MAKE A DECISION ALLEGATIONS OF HUGE KICKBACKS AT SENIOR MINISTRY LEVELS MARK THE LATEST PHASE IN A CLEANGOVERNMENT CRUSADE WAGED BY KOREA'S POPULAR PRESIDENT KIM YOUNG SAM PROSECUTORS OVER THE WEEKEND ARRESTED FOUR OFFICERS TWO OF THEM FORMER DEFENSE MINISTERS SUSPECTED OF ACCEPTING BRIBES AND PAYOFFS IN ARMS DEALS THE TRANSACTIONS INCLUDED A 1991 CONTRACT TO BUY FIVE P3C ANTISUBMARINE PATROL PLANES FROM LOCKHEED CORP ACCORDING TO THE ASSOCIATED PRESS ALSO ARRESTED WERE EIGHT BUSINESS LEADERS SUSPECTED OF OFFERING KICKBACKS INCLUDING CHUNG MONG KOO THE CHAIRMAN OF HYUNDAI PRECISION & INDUSTRY AN AFFILIATE OF HYUNDAI GROUP MR CHUNG IS THE SON OF CHUNG JU YUNG ONE OF KOREA'S MOST PROMINENT INDUSTRIALISTS THE INVESTIGATION WHICH BEGAN TWO MONTHS AGO WITH CHARGES OF INFLUENCEPEDDLING RELATING TO AN F16 JET FIGHTER SALE OFFERS A GLIMPSE INTO THE MURKY WORLD OF ARMS PROCUREMENT IN KOREA IN A PRELIMINARY FINDING TWO WEEKS AGO THE BOARD OF AUDIT AND INSPECTION ANNOUNCED THAT IT SUSPECTED 53 SENIOR OFFICERS AND CIVILIAN OFFICIALS OF IRREGULARITIES ASSOCIATED WITH A MASSIVE ARMS BUILDUP KNOWN AS THE YULGOK PROJECT ABOUT 20 BILLION HAS BEEN INVESTED IN THE PROJECT BEGUN IN THE EARLY 1980S AND DESIGNED TO MAKE KOREA'S DEFENSE CAPABILITY LARGELY SELFSUFFICIENT THE INVESTIGATION THREATENS TO DISRUPT LUCRATIVE WEAPONS PROJECTS INCLUDING A FIGHTERJET DEAL THE GOVERNMENT SIGNED WITH GENERAL DYNAMICS CORP IN APRIL 1991 THAT IS NOW HELD BY LOCKHEED THE DEAL WHICH WAS THE SUBJECT OF THE INITIAL CHARGES OF INFLUENCEPEDDLING THAT LAUNCHED THE INQUIRY COMBINES OFFTHESHELF SALES WITH LOCAL ASSEMBLY OF 120 F16S UNDER A JOINT LICENSING AGREEMENT BETWEEN LOCKHEED AND AFFILIATES OF KOREAN CONGLOMERATES SAMSUNG DAEWOO AND HYUNDAI THE PROJECT TOTALS 52 BILLION IN MAKING ITS PRELIMINARY REPORT TWO WEEKS AGO THE BOARD OF AUDIT AND INSPECTION SAID IT WOULD REQUEST DOCUMENTS FROM THE US GENERAL ACCOUNTING OFFICE WHICH CLEARED THE SALE AS ABOVEBOARD LAST YEAR AFTER A ROUTINE INVESTIGATION THE BOARD OF AUDIT AND INSPECTION HAS YET TO MAKE SUCH A REQUEST ACCORDING TO LOCKHEED AND THE F16 PROJECT IS PROCEEDING ON SCHEDULE THE INVESTIGATION HAS HOMED IN ON A COMMUNITY OF ARMS DEALERS AND THEIR RELATIONSHIPS WITH DEFENSE MINISTRY OFFICIALS USUALLY THE DEALERS ARE RECENTLY RETIRED HIGHRANKING OFFICERS WHO SHEPHERD PROPOSED ARMS PACKAGES THROUGH THE GOVERNMENT'S LABYRINTHINE PROCUREMENT PROCESS ON BEHALF OF DEFENSE CONTRACTORS A CONTRACTOR MIGHT PAY ONE OF ITS AGENTS AN INITIAL RETAINER OF ABOUT 35000 PLUS A 3 TO 5 COMMISSION ON SALES OF PROJECTS OF AS MUCH AS 1 MILLION AND 1 BEYOND THAT TURNOVER AMONG THESE AGENTS IS HIGH AFTER TWO YEARS THEIR CONTACTS AT THE DEFENSE MINISTRY BECOME STALE INDUSTRY INSIDERS CONTEND THE AGENTS WORK NO DIFFERENTLY THAN WASHINGTON LOBBYISTS BUT AT LEAST A DOZEN KOREAN AGENTS HAVE BEEN CHARGED WITH OFFERING KICKBACKS TO DEFENSE MINISTRY OFFICIALS AND THAT HAS RAISED QUESTIONS ABOUT POSSIBLE COMPLICITY AMONG LOCAL AND OVERSEAS DEFENSE CONTRACTORS SOME OF THE AGENCIES MENTIONED IN THE INVESTIGATION ARE OWNED BY KOREA'S MAJOR CONGLOMERATES A SHAKEOUT AMONG ARMS AGENTS COULD FURTHER CLOUD KOREA'S PROCUREMENT INDUSTRY PARTICULARLY FOR FOREIGN CONTRACTORS THE US EMBASSY ACTING ON BEHALF OF US CONTRACTORS WHO RELY ON THE AGENTS HAS ASKED THE KOREAN GOVERNMENT TO INDICATE WHETHER THE AGENCIES WILL BE ALLOWED TO DO BUSINESS IF THEIR DEALERS ARE CONVICTED THE GOVERNMENT HAS YET TO RESPOND ACCORDING TO EMBASSY STAFF IN THE MEANTIME AT LEAST THREE PROJECTS INVOLVING US COMPANIES ALL OF WHICH ARE FOR THE DEVELOPMENT OF KOREA'S PROPOSED FLEET OF BETWEEN 15 AND 20 DESTROYERS ARE IN LIMBO PMI CORP NEWPORT NEWS VA WON A BID TO INSTALL HEATING VENTILATION AND AIRCONDITIONING SYSTEMS MASSACHUSETTSBASED BIRDJOHNSON WAS SELECTED TO BUILD PROPELLER SHAFTS AND STEWART & STEVENSON CO HOUSTON IS TO PROVIDE DIESEL GENERATORS BUT THE CONTRACTS VALUED AT BETWEEN 255 MILLION AND 350 MILLION DEPENDING ON THE SIZE OF THE FLEET HAVE YET TO BE SIGNED IT IS UNCLEAR WHETHER PROSECUTORS WILL NEXT FOCUS ON FOREIGN COMPANIES THAT POSSIBILITY HAS BEEN CONSIDERED AN OFFICIAL WITH ONE US CONTRACTOR SAID BUT WITH THE STRONG RELATIONSHIPS WE'VE HAD HERE THAT SHOULD BUFFER US NOT NECESSARILY SAYS A US EMBASSY OFFICIAL SOMETHING OF THIS MAGNITUDE IS NEW TERRITORY AND IT CONTINUES TO GROW 9307190040 930719 NASD ANNOUNCES DISCIPLINARY ACTIONS AGAINST A NUMBER OF FIRMS INDIVIDUALS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY ACTIONS AGAINST A NUMBER OF FIRMS AND INDIVIDUALS FOR VIOLATION OF SECURITIES LAWS AND REGULATIONS ADAMS SECURITIES INC LAS VEGAS WAS FINED 79541 JOINTLY AND SEVERALLY WITH PRINCIPALS JAMES WILLIAM ADAMS AND DANIEL BRUCE PERRY BOTH OF HENDERSON NEV THE FIRM ALSO WAS SUSPENDED FOR 60 DAYS FROM MARKETMAKING AND THE TWO MEN WERE EACH FINED AN ADDITIONAL 15000 AND SUSPENDED FOR 30 DAYS THE SANCTIONS WERE AFFIRMED BY THE SECURITIES AND EXCHANGE COMMISSION FOLLOWING AN APPEAL THE NASD SAID THE SANCTIONS WERE RELATED TO SELLING SECURITIES AT UNFAIR PRICES BISON SECURITIES INC AMHERST NY AND PRINCIPAL MICHAEL TRIPI TONAWANDA NY WERE FINED 90000 JOINTLY AND SEVERALLY AND THE FIRM WAS SUSPENDED FOR SIX MONTHS MR TRIPI WAS ALSO SUSPENDED FOR SIX MONTHS THE SEC AFFIRMED THE SANCTIONS WHICH WERE BASED ON FINDINGS THAT THE FIRM SOLD STOCKS AT UNFAIR AND UNREASONABLE PRICES BRYN MAWR INVESTMENT GROUP INC ROSEMONT PA AND PRINCIPAL HOWARD H FLESHER WERE FINED 10000 JOINTLY AND SEVERALLY IN ADDITION THE FIRM WAS FINED 2000 JOINTLY AND SEVERALLY WITH ANOTHER BROKER THE NASD SAID THE FIRM FAILED TO MAINTAIN REQUIRED NET CAPITAL FILED INACCURATE REPORTS AND MADE OTHER RECORDKEEPING ERRORS F B HORNER & ASSOCIATES INC NEW YORK AND PRINCIPAL FRED B HORNER WERE FINED 99201 JOINTLY AND SEVERALLY THE PENALTIES WERE AFFIRMED BY THE SEC A CHALLENGE TO THE SEC'S DECISION WAS DENIED BY A FEDERAL APPEALS COURT IN MAY THE NASD SAID THE FIRM SOLD ZEROCOUPON BONDS TO AN INSTITUTIONAL CUSTOMER AT UNFAIR PRICES VAN CLEMENTS & CO MINNEAPOLIS AND PRINCIPAL THOMAS JOHN VANYO ROBBINSDALE MINN WERE FINED 10400 JOINTLY AND SEVERALLY FOR CHARGING EXCESSIVE COMMISSIONS ALLIANCE SECURITIES CORP LOS ANGELES WAS FINED 5000 JOINTLY AND SEVERALLY WITH A BROKER AND REQUIRED TO JOINTLY AND SEVERALLY PAY RESTITUTION OF 56335 THE FIRM FAILED TO MAINTAIN NET CAPITAL AND SOLD STOCK AT EXCESSIVE MARKUPS THE NASD SAID UNLESS OTHERWISE NOTED NONE OF THE FIRMS OR INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT THE SEC AFFIRMED SANCTIONS AGAINST ROBERT A AMATO NEW ORLEANS WHO WAS FINED 20000 AND SUSPENDED FOR FOUR WEEKS AND AGAINST CHARLES D BLOCK JR NEW ORLEANS AND WILLIAM C BOEHMER JR METAIRIE LA EACH FINED 5000 AND SUSPENDED FOR ONE WEEK MR AMATO HAS APPEALED THE ACTION TO A US COURT OF APPEALS DUANE M BARR BROKEN ARROW OKLA WAS BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS SCOT BARRINGER ASPEN COLO WAS FINED 10000 AND SUSPENDED FOR 60 DAYS AND SUSPENDED AS A GENERAL SECURITIES PRINCIPAL FOR AN ADDITIONAL 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO DANTE M BRAMBLETT BIRMINGHAM ALA WAS SUSPENDED FOR TWO MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS RHONDA LEE BREARD ISSAQUAH WASH WAS FINED 15000 AND SUSPENDED FOR 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIS H BREWER JR AND SCOTT R GRAY BOTH OF METAIRIE LA EACH FINED 5000 AND SUSPENDED ONE WEEK PENALTIES AFFIRMED BY THE SEC RICHARD S CHANCIS NEW YORK WAS FINED 6000 AND SUSPENDED FOR 10 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ANA BEATRIZ CONCEPCION BRONX NY WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS HELEN HOLT CORDRY AND THOMAS WALLACE CORDRY SAN FRANCISCO WERE FINED 20000 JOINTLY AND SEVERALLY AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS REGARDING 149702 IN FUNDS MISSING FROM A CUSTOMER'S ACCOUNT ALSO JEROME J CUSIMANO HEMPSTEAD NY WAS FINED 20000 AND BARRED AND REQUIRED TO PAY 9000 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS JAMES E ENNEPER GREEN BAY WIS WAS FINED 40000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THOMAS C FEAD ENGLEWOOD COLO WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ANTHONY GARY GALANTE LAS VEGAS WAS FINED 13875 TIMOTHY MARK HAAS BOZEMAN MONT WAS FINED 100000 AND BARRED MICHAEL G HAYDEN CINCINNATI WAS FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS STEPHEN F HICKEY POWELL OHIO WAS FINED 30000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JAMES H HICKS TULSA OKLA WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS FRANK S HIEGEL LITTLE ROCK ARK WAS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS KENNETH RAY HUDSON SAN DIEGO WAS SUSPENDED FOR 90 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS EVA S JOHNSON ROBBINS ILL WAS FINED 135000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO MICHAEL T KEAR SOMERVILLE NJ WAS FINED 100000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MARK T KENT HUNTSVILLE ALA WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS REUBEN FLEECE LOGAN III LOMBARD ILL WAS FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS DAN LAWRENCE MAUSS SALT LAKE CITY WAS FINED 10000 AND BARRED AS A GENERAL SECURITIES PRINCIPAL ILMI MEHMEDOVIC GLENDALE NY WAS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS PAUL M MICHALOVSKY NEW YORK WAS FINED 20000 SUSPENDED 30 BUSINESS DAYS AND REQUIRED TO PAY 56100 IN RESTITUTION CYNTHIA RENAE MULFLUR PORTLAND ORE WAS FINED 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS JAMES H O'BRYAN JR LOUISVILLE KY WAS FINED 30000 SUSPENDED FOR ONE WEEK AND ORDERED TO PAY 48000 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT BRUCE ORKIN BOCA RATON FLA WAS FINED 15000 AND SUSPENDED FOR 90 DAYS AFFIRMED BY THE SEC THE ACTION HAS BEEN APPEALED TO A FEDERAL APPEALS COURT ALSO STEPHEN E PARKER LITTLE ROCK ARK WAS FINED 5000 AND SUSPENDED FOR TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS KEITH SCOTT PHILLIPS NEW YORK WAS FINED 100000 AND BARRED BRIAN JOHN QUINN SANDY UTAH WAS FINED 2500 AND BARRED GARY LEE ROBINSON DENVER WAS FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS REECE D ROGERS MEMPHIS TENN WAS FINED 20000 AND SUSPENDED FOR FIVE YEARS WITH CREDIT FOR 4 1/2 YEARS HE HAS NOT BEEN IN THE SECURITIES INDUSTRY EDWARD M STEWART BIRDSBORO PA WAS FINED 20000 AND BARRED DAVID THOMAS STOVER SEATTLE WAS FINED 20000 AND SUSPENDED FOR 30 DAYS AND REQUIRED TO PAY 55000 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS JIM D SWINK JR AND JIM D SWINK SR LITTLE ROCK ARK DIDN'T ADMIT OR DENY ALLEGATIONS MR SWINK JR WAS FINED 25000 AND SUSPENDED FOR ONE YEAR MR SWINK SR WAS FINED 50000 AND BARRED STANLEY L SWOYER FREDERICK MD AND KENNETH E NIGHTINGALE TOWSON MD WERE EACH FINED 5000 AND SUSPENDED 30 DAYS ROBERT L WILLIAMS JASPER ALA WAS FINED 5000 AND SUSPENDED FOR ONE YEAR WITHOUT ADMITTING OR DENYING ALLEGATIONS AND EDWARD R YAMAN NEW YORK WAS FINED 2500 AND SUSPENDED FOR FIVE BUSINESS DAYS HE DIDN'T ADMIT OR DENY ALLEGATIONS 9307190039 930719 MERRILL LYNCH TO AUCTION OFF RARE COINS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO IS THROWING IN THE TOWEL ON ITS 1980S LIMITED PARTNERSHIPS IN RARE GOLD AND SILVER COINS AND ANCIENT ART THE LIQUIDATION THIS FALL WILL BE A 22 MILLION NOMINIMUMBIDS FIRE SALE BUT EVEN SO INVESTORS ARE UNLIKELY TO COME OUT WHOLE SLATED FOR THE AUCTION BLOCK ARE THE REMAINING ASSETS OF MERRILL'S 251 MILLION ATHENA II FUND LP WHICH WAS SOLD TO INDIVIDUAL INVESTORS BACK IN 1988 AND THE TAIL END OF A 73 MILLION ATHENA I PRIVATE PLACEMENT SOLD TWO YEARS EARLIER THE FUNDS' PORTFOLIOS BRIM WITH GOLD AND SILVER ROMAN MEDALLIONS A SILVER TETRADRACHM FROM 405 BC AND A VERY RARE 100000 GOLD COIN DEPICTING QUINTUS LABIENUS A ROMAN GENERAL AND EARLY POLITICAL SUPPORTER OF CAESAR'S ASSASSIN BRUTUS MERRILL AND ITS PARTNER IN THE FUNDS NUMISMATIC FINE ARTS INTERNATIONAL IN LOS ANGELES HAVE TURNED THE TROVE OVER TO ARTAUCTIONEER SOTHEBY'S HOLDINGS INC THE TWOTIERED SELLING STRATEGY AS DISCLOSED IN SECURITIES AND EXCHANGE COMMISSION DOCUMENTS SEND THE COLLECTION'S PRIZED PIECES TO ZURICH SWITZERLAND AND SELL THE REST IN NEW YORK ALL WITH ROCKBOTTOM EVERYTHINGMUSTGO PRICE ESTIMATES WITH SUCH A FLOOD OF MATERIAL HITTING THE MARKET MERRILL'S INVESTORS' LOSS COULD BE THE COLLECTORS' GAIN MERRILL'S INVESTORS BETTER HOPE FOR AUCTION FEVER FIVE YEARS AGO WHEN MERRILL TEAMED UP WITH NUMISMATICS FINE ARTS HEAD NOTED COIN AND SPORTS MEMORABILIA DEALER BRUCE P MCNALL THE BROKERAGE FIRM'S SALES LITERATURE TRUMPETED THE ATHENA FUND II AS A HISTORIC INVESTMENT OPPORTUNITY IT SOLD FOR 1000 PER UNIT BUT MOST BUYERS ACCORDING TO MERRILL SPENT ABOUT 12000 OF THAT 18 WENT TO COMMISSIONS AND FEES AND THE REST INTO ANCIENT COINS AND A SMATTERING OF GREEK AND ROMAN VASES AND STATUES THE UNITS NOW ARE TRADING AT 290 IN MERRILL'S OWN SECONDARY MARKET FOR ITS PARTNERSHIPS WHEN CASH DISPOSITIONS PAID OVER THE YEARS ARE ADDED IN ATHENA FUND II UNITS ARE WORTH 42 OF THEIR FACE VALUE MERRILL EXECUTIVES ARE REDFACED WE DID NOT ANTICIPATE THAT WE'D BE LIQUIDATING AT SOTHEBY'S TWO YEARS BEFORE MATURITY IN AN EFFORT TO RECOUP OUR DOLLAR SAID RICHARD RUFFINE HEAD OF LIMITED PARTNERSHIPS AT MERRILL LYNCH SO WHAT HAPPENED I HATE TO SAY IT WAS A FAD WE HATE TO THINK LIKE THAT BUT AT THE TIME IT COINS AND ART WAS IN DEMAND NOW IT'S NOT AS FASHIONABLE AS IT WAS DURING THE LATE 1980S TO OWN HARD ASSETS IT'S BEEN A DISAPPOINTMENT NO QUESTION ABOUT IT SAID MR MCNALL REACHED IN TORONTO LAST WEEK BUT THE RISING FEVER FOR GOLD IS WORKING IN THIS SALE'S FAVOR HE ADDED ANCIENT COINS TRADE ON RARITY MUCH MORE THAN ON VALUE OF THE METAL BUT IT'S A PSYCHOLOGICAL HELP NONETHELESS THE COIN MARKET REMAINS SLUGGISH THE RECESSION HIT DEEPER THAN WE THOUGHT INFLATION STOPPED WE HAVEN'T SEEN THE NEW YOUNGER COIN COLLECTOR ALL THE KIDS ARE AT THE BASEBALL CARD SHOWS SAID MR MCNALL NORMAN MORAND III CHIEF FINANCIAL OFFICER OF THE FUNDS SAID FLATLY THE COIN MARKET CRASHED WE'RE WORKING AS HARD AS WE CAN TO MAKE UP FOR THE PERFORMANCE TO DATE BUT WAS IT THE SAGGING COIN MARKET OR HEFTY ADMINISTRATIVE FEES THAT HURT INVESTORS EVEN THOUGH THE ATHENA II FUND LOST 22 MILLION IN 1992 SEC DOCUMENTS SHOW THAT NUMISMATIC FINE ARTS WAS PAID A 400000 MANAGEMENT FEE AND AN ADDITIONAL 333326 FOR DIRECT AND ACCOUNTABLE EXPENSES INCURRED IN DISCHARGING ITS DUTIES AS ADVISER THAT YEAR IN FACT IN THE FIRST QUARTER OF THIS YEAR THE ATHENA II FUND'S COIN SALES WERE ACTUALLY PROFITABLE BEFORE EXPENSES BUT MANAGING COIN AND ART FUNDS ISN'T LIKE BUYING TWO PLOTS OF LAND AND THEN JUST SITTING ON THE INVESTMENT SAID MR MCNALL SO MANY INDIVIDUAL ITEMS ARE INVOLVED AS ADMINISTRATIVE GENERAL PARTNER OF THE FUND MR MCNALL EARNED AN ADDITIONAL 125420 AS AN ANNUAL ADMINISTRATION FEE IN 1992 MR MCNALL BECAME RENOWNED IN THE COIN FIELD AS THE ADVISER TO THE DALLAS BILLIONAIRE BROTHERS NELSON BUNKER HUNT AND HERBERT HUNT IN THEIR ACQUISITION OF COINS AND ART THOUGH A CREDITORFORCED SALE OF THE COIN COLLECTION FETCHED A RECORD 23 MILLION AT SOTHEBY'S IN 1990 THE HUNTS ACTUALLY PAID MORE NONETHELESS MR MCNALL AND HIS COIN EXPERTISE WERE CONSIDERED SO IMPORTANT TO THE ATHENA II FUND THAT IN THE PARTNERSHIP'S ORIGINAL OFFERING DOCUMENTS IT WAS DISCLOSED THAT THE PARTNERSHIP HAD TAKEN OUT A 2 MILLION LIFE INSURANCE POLICY ON HIM MOREOVER UNDER THE TERMS OF THE PARTNERSHIP MR MCNALL AND NUMISMATICS FINE ARTS MAY PARTICIPATE IN OTHER BUSINESS VENTURES WHICH ARE LIKELY TO COMPETE WITH THE PARTNERSHIP AND MAY GIVE INVESTMENT ADVICE OR GRADE COINS AND ANTIQUITIES ON BEHALF OF BOTH BUYER AND SELLER UNDER CERTAIN CONDITIONS AND WITH PUBLIC DISCLOSURE MR MCNALL OR HIS COMPANIES CAN EVEN BID AT THE COMING SOTHEBY'S AUCTIONS MERRILL'S MR RUFFINE SAID THE GOAL OF THE AUCTIONS FOR ATHENA II INVESTORS IS TO AT MINIMUM RETURN TO THEM THEIR 1000PERUNIT INVESTMENT THE INVESTORS IN THE OLDER AND MORE EXCLUSIVE ATHENA I PRIVATE PLACEMENT MAY FARE BETTER SINCE IT WAS MORE PROFITABLE IN ITS FIRST YEARS OF OPERATION BUT A BIG PROBLEM FOR INVESTORS IN BOTH ATHENA PARTNERSHIPS IS THAT THE FUNDS' ASSETS WHICH ARE VALUED AT ABOUT 22 MILLION BY APPRAISERS HIRED BY NUMISMATICS FINE ARTS APPARENTLY AREN'T VIEWED AS QUITE AS VALUABLE BY SOTHEBY'S EXPERTS SO FAR SOTHEBY'S HAS RECEIVED AND REVIEWED APPROXIMATELY TWOTHIRDS OF THE COINS BUT NONE OF THE ART SOTHEBY'S COIN CONSULTANTS HAVE ASSIGNED A TOTAL VALUE OF 7 MILLION 9307190038 930719 CATERAIR SEEKS 230 MILLION OFFERING TO REFINANCE HIGHINTEREST OBLIGATIONS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CATERAIR INTERNATIONAL CORP THE NATION'S LARGEST PROVIDER OF INFLIGHT FOOD SERVICE IS PROPOSING TO SELL 230 MILLION IN SENIOR DEBT TO REFINANCE SOME OF ITS OBLIGATIONS THE PROPOSED DEBT OFFERING WOULD RETIRE SOME OF THE COMPANY'S HIGHERINTEREST DEBT WHILE INCREASING THE COMPANY'S OVERALL DEBT BURDEN AND FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION INDICATE THAT EVEN WITH THE NEW FUNDS CATERAIR STILL FACES SOME FORMIDIBLE HURDLES INCLUDING THE SLUMP IN US AIRLINE TRAFFIC CATERAIR WAS CREATED BY A LATE 1989 570 MILLION MANAGEMENTLED LEVERAGED BUYOUT COORDINATED BY CARLYLE GROUP WASHINGTON FROM MARRIOTT CORP LAST YEAR THE INFLIGHT FOOD SERVICE COMPANY REPORTED 11 BILLION IN REVENUE AND OPERATED FROM 84 AIRPORTS IN 16 COUNTRIES AS A UNIT OF MARRIOTT THE COMPANY PIONEERED THE AIRLINE CATERING BUSINESS IN 1937 BY PROVIDING INFLIGHT FOOD SERVICE TO AN AIRLINE AT THE WASHINGTON DC AIRPORT OTHER INDEPENDENT PROVIDERS OF INFLIGHT CATERING INCLUDE SKY CHEFS INC ARLINGTON TEXAS A UNIT OF ONEX CORP DOBBS INTERNATIONAL SERVICES INC MEMPHIS A UNIT OF DIAL CORP AND OGDEN CORP NEW YORK CATERAIR'S FILING NOTED THAT THE AIRLINE FOODSERVICE INDUSTRY FACES SEVERAL PROBLEMS INCLUDING SCALEDDOWN FOOD OFFERINGS BY AIRLINES AND THE PRECARIOUS ECONOMIC POSITION OF SEVERAL AIRLINES THE AIRLINE INDUSTRY LOSING MILLIONS OF DOLLARS HAS TAKEN ALL SORTS OF COSTCUTTING MEASURES INCLUDING CUTTING BACK ON ITS SPENDING FOR FOOD SERVICE CATERAIR HAS FELT THE PINCH AS WELL ALONG WITH CONSOLIDATING SOME OF ITS KITCHENS THE COMPANY HAS ELIMINATED 728 POSITIONS OR 7 OF ITS WORK FORCE INCLUDING 63 MANAGERS CATERAIR SAID ITS REVENUE DECLINED ABOUT 87 MILLION IN THE FIRST QUARTER DUE TO FOODSERVICE CUTBACKS AIRLINES SPENT ABOUT 551 A PASSENGER ON FOOD IN THE 1993 FIRST QUARTER COMPARED WITH 587 A PASSENGER IN THE 1992 FIRST QUARTER FURTHER THE COMPANY SAID RESTRUCTURING ITS BUSINESS TO MEET THE CHANGING DEMANDS OF THE AIRLINES WILL RESULT IN A 243 MILLION SECOND QUARTER CHARGE MOREOVER CATERAIR HAS CONTRACTS WITH AIRLINES THAT CONTINUE TO FACE ECONOMIC DIFFICULTIES DURING 1992 CATERAIR HAD 6015 MILLION IN CATERING REVENUE IN THE US ITS NO 2 CUSTOMER BELEAGUERED NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC REPRESENTED 1038 MILLION OR 17 OF THE COMPANY'S DOMESTIC SALES THE COMPANY ESTIMATED THAT INDEPENDENT COMPANIES LIKE ITSELF PROVIDED 77 OF THE US INFLIGHT FOOD SERVICE COMPARED WITH 70 IN 1988 BUT CATERAIR SAID THAT INTERNATIONAL MARKETS WHICH REPRESENTED 4998 MILLION IN REVENUE IN 1992 SHOULD PROVIDE MOST OF ITS GROWTH IN THE FUTURE THE COMPANY RECENTLY ESTABLISHED OPERATIONS IN RUSSIA AND AUSTRALIA CATERAIR SAYS IT IS WORKING TO START BUSINESS IN SAO PAULO BRAZIL AND INTENDS TO EXPLORE OPPORTUNITIES IN TAIWAN KOREA AND GERMANY OTHER OPPORTUNITIES FOR GROWTH MAY ARISE AS FOREIGNFLAG CARRIERS PRIVATIZE ALLOWING IT TO BID FOR CONTRACTS PREVIOUSLY HELD BY GOVERNMENTS SINCE THE MANAGEMENTLED LBO CATERAIR HAS STEADILY WHITTLED DOWN ITS INTEREST EXPENSE BUT THE COMPANY HAS YET TO REPORT A PROFIT IN 1990 THE COMPANY REPORTED A LOSS OF 208 MILLION AND 259 MILLION IN 1991 LAST YEAR THE LOSS NARROWED TO ABOUT 400000 DURING THAT SAME TIME INTEREST EXPENSE DECLINED TO 464 MILLION IN 1992 FROM 718 MILLION IN 1990 THE COMPANY'S DEBT LEVEL HOWEVER HAS REMAINED HIGH FOLLOWING THE BUYOUT THE COMPANY HAD ABOUT 4643 MILLION IN LONGTERM DEBT AS OF MARCH 31 THE COMPANY HAD ABOUT 4258 MILLION IN DEBT INCLUDING SOME DEBENTURES PAYING 165 INTEREST AGAINST ABOUT 119 MILLION IN STOCKHOLDER EQUITY THE 165 DEBENTURES HOWEVER WOULD BE RETIRED BY THE PROPOSED OFFERING THE 230 MILLION BOND OFFERING WILL BE UNDERWRITTEN BY MORGAN STANLEY & CO AND DILLON READ & CO IN ITS FILING WITH THE SEC THE COMPANY SAID ITS HEAVILY LEVERAGED BALANCE SHEET COULD PREVENT IT FROM MAKING CERTAIN DEBT PAYMENTS ESPECIALLY IF INTEREST RATES BEGIN TO RISE BECAUSE SOME OF ITS DEBT IS SENSITIVE TO INTERESTRATE CHANGES FURTHERMORE THE COMPANY SAID ITS LEVERAGED POSITION COULD MAKE IT DIFFICULT TO ISSUE ADDITIONAL DEBT IN 1992 CATERAIR SAID IT HAD A 700000 DEFICIENCY IN EARNINGS TO COVER FIXED COSTS AND THE COMPANY IS SEEKING WAIVERS FROM LENDERS FOR CERTAIN FINANCIAL COVENANTS IN CREDIT AGREEMENTS 9307190037 930719 DIVIDEND NEWS WEST ONE BANCORP WEST ONE BANCORP BOISE IDADO DECLARED A 2FOR1 SPLIT PAYABLE AUG 13 TO STOCK OF RECORD JULY 23 THIS WILL INCREASE COMMON SHARES OUTSTANDING TO ABOUT 327 MILLION THE BANK ALSO DECLARED A QUARTERLY CASH DIVIDEND OF 155 CENTS A SHARE PAYABLE OCT 21 TO STOCK OF RECORD SEPT 30 THIS IS EQUIVALENT TO THE AMOUNT THE COMPANY HAD BEEN PAYING BEFORE THE SPLIT 9307190036 930719 DIVIDEND NEWS MID AM INC MID AM INC SAID ITS BOARD DECLARED A 3FOR2 STOCK SPLIT PAYABLE OCT 10 TO STOCK OF RECORD SEPT 15 THE BOWLING GREEN OHIO BANK HOLDING COMPANY ALSO SAID IT CALLED A SPECIAL SHAREHOLDERS MEETING FOR OCT 5 TO VOTE ON A PROPOSAL TO INCREASE AUTHORIZED COMMON SHARES TO 35 MILLION FROM 15 MILLION MID AM SAID IT WOULD USE THE ADDITIONAL SHARES FOR GENERAL CORPORATE PURPOSES INCLUDING CAPITALRAISING EFFORTS ACQUISITIONS AND THE SPLIT IT HAS 87 MILLION SHARES OUTSTANDING 9307190035 930719 LETTERS TO THE EDITOR DEAD MEAT TOM SQUIER'S CULINARY PREDILECTION FOR TIRED ROADKILL AS DESCRIBED IN YOUR JUNE 23 PAGE ONE ARTICLE THE SCREECH OF TIRES MEANS A TASTY MEAL FOR THIS RURAL CHEF IS NOT HIS EXCLUSIVELY MY BROTHER HAS FOR YEARS PROCLAIMED THE SUPERIOR FRESHNESS OF THE ROAD SHOULDER CUT IF YOU CAN GET TO IT IN TIME WHILE SOME LIVE OFF THE FAT OF THE LAND MY BROTHER ROBERT LIVES OFF THE SIDE OF THE ROAD AND SWEARS BY IT 9307190034 930719 TECHNOLOGY TI'S RECORD RESULTS FOR 2ND PERIOD FAIL TO WOO INVESTORS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WHILE TEXAS INSTRUMENTS INC REPORTED RECORD EARNINGS AND REVENUE FOR THE SECOND QUARTER THE COMPANY'S STOCK DROPPED ON LINGERING FEARS OF A SLOWDOWN IN PERSONAL COMPUTER SALES SHARES OF THE DEFENSE AND ELECTRONICS CONCERN FELL 4 FRIDAY TO CLOSE AT 71875 IN NEW YORK STOCK EXCHANGE TRADING THOUGH THE COMPANY SAID ITS RESULTS WERE BOOSTED BY UNEXPECTEDLY STRONG SEMICONDUCTOR DEMAND INVESTORS INFLUENCED BY RECENT LOSSES AT APPLE COMPUTER INC AND DELL COMPUTER CORP REMAINED WARY THERE'S A GOOD BIT OF FEAR ABOUT A SLOWDOWN IN THE PC INDUSTRY SAID WILLIAM J MILTON JR A SEMICONDUCTOR ANALYST AT BROWN BROTHERS HARRIMAN IN NEW YORK FOR ITS PART TI SAID BUSINESS HAS NEVER BEEN BETTER NET INCOME AT THE COMPANY WAS UP 55 IN THE QUARTER TO 112 MILLION OR 118 A SHARE FROM 72 MILLION OR 73 CENTS A SHARE DURING THE YEAREARLIER PERIOD REVENUE ROSE 13 TO 21 BILLION THE COMPANY SAID MARGINS IN ITS DEFENSE OPERATIONS WERE STABLE WHILE ITS INFORMATION TECHNOLOGY AND CONSUMER PRODUCTS BUSINESSES LOST MONEY TI'S RESULTS IN LINE WITH MOST ANALYSTS' ESTIMATES INCLUDED ONETIME ROYALTY REVENUE OF ABOUT 31 MILLION OR 15 CENTS A SHARE AS A RESULT OF PATENT LICENSING DEALS CLOSED DURING THE QUARTER WILLIAM A AYLESWORTH TI'S CHIEF FINANCIAL OFFICER SAID THE COMPANY WAS SURPRISED BY THE STRENGTH OF WORLDWIDE SEMICONDUCTOR ORDERS WHICH HIT A RECORD HIGH FOR TI DURING THE QUARTER MR AYLESWORTH SAID THE COMPANY'S EARLIER PROJECTION THAT WORLDWIDE SEMICONDUCTOR DEMAND WOULD GROW BY 17 THIS YEAR PROVED TO BE OFFBASE THAT FORECAST CLEARLY WAS TOO LOW HE SAID TI NOW SAYS IT EXPECTS THE WORLD CHIP BUSINESS TO GROW ABOUT 20 THIS YEAR WHILE DEMAND FOR SEMICONDUCTORS IN THE US COULD TOP 30 IN FEBRUARY TI PROJECTED A 25 JUMP IN DOMESTIC CHIP DEMAND UNLIKE MANY WALL STREET OBSERVERS MR AYLESWORTH SAID HE SEES NO EVIDENCE OF A PC SLOWDOWN THAT COULD DENT DEMAND FOR COMPUTER CHIPS THAT VIEW WAS ECHOED LAST WEEK BY SEMICONDUCTOR LEADER INTEL CORP WHICH REPORTED A TRIPLING IN SECONDQUARTER PROFIT STILL DOUBTERS REMAIN INCLUDING MR MILTON WHO QUESTIONS HOW TI CAN PREDICT A MARKET THAT HAS IN THE PAST YEAR BEEN SO VOLATILE THERE'S LESS VISIBILITY HERE THAN EVER HE SAID I DON'T SEE HOW THE COMPANY CAN BE SO CONFIDENT 9307190033 930719 BUSINESS BRIEF DAIMLERBENZ AG PROBLEM WITH THROTTLE PART SPURS RECALL OF 128000 CARS MERCEDESBENZ OF NORTH AMERICA A UNIT OF DAIMLERBENZ AG SAID IT IS RECALLING 128000 19871992 VEHICLES TO REPLACE A DEFECTIVE THROTTLE CABLE CONNECTOR THE RECALL INVOLVES 300SERIES CARS EQUIPPED WITH FIVECYLINDER AND SIXCYLINDER ENGINES THE CONNECTOR SECURING THE THROTTLE CABLE TO THE ENGINE MAY DEFORM BECAUSE OF HIGH HEAT AND WEAR WHICH MAY DISCONNECT THE CABLE THE CAR MAY THEN BE UNABLE TO ACCELERATE IN TRAFFIC THE MERCEDES UNIT BASED IN MONTVALE NJ SAID THERE HAVE BEEN NO REPORTS OF ACCIDENTS OR INJURIES RELATED TO THIS CONDITION A NEW CONNECTOR WILL BE INSTALLED AT NO COST 9307190032 930719 RUST IS SEEKING DEFENSE CONTRACTS FOR CLEANUP WORK BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL RUST INTERNATIONAL INC IS AWAITING NEWS ON ITS BIDS FOR MORE THAN 1 BILLION IN DEFENSE DEPARTMENT ENVIRONMENTAL CLEANUP WORK IN HOPES OF BOOSTING ITS BACKLOG AND ACCELERATING GROWTH AT THE ENGINEERING AND CONSTRUCTION CONCERN MAJORITY OWNED BY WMX TECHNOLOGIES INC FORMERLY WASTE MANAGEMENT INC AND PUBLICLY TRADED SINCE MAY RUST THUS FAR HAS LOST OUT ON THE BIGGEST GOVERNMENT ENVIRONMENTAL CONTRACTS THE DEPARTMENT OF ENERGY'S CLEANUP JOBS THAT CAN AMOUNT TO BILLIONS OF DOLLARS OF WORK OVER SEVERAL YEARS BEING AWARDED SOME OF THE DOZEN OR SO SMALLER JOBS FOR THE PENTAGON THAT RUST HAS BIDS ON WOULD GO A LONG WAY HOWEVER IN HELPING THE COMPANY BULK UP AND BETTER COMPETE FOR CONTRACTS IN THE FUTURE THEY NEED IT SAID CAREY CALLAGHAN AN ANALYST AT LEHMAN BROTHERS IN NEW YORK SOME OF THE DEFENSE CLEANUP JOBS WHICH RANGE IN VALUE FROM 25 MILLION TO 300 MILLION WILL BE AWARDED AS SOON AS NEXT MONTH THEY INVOLVE CLEANUP WORK AT NAVY AIR FORCE AND ARMY BASES DEFENSE AND ENERGY DEPARTMENT SITES ACROSS THE COUNTRY ARE BADLY FOULED WITH TOXIC AND RADIOACTIVE MATERIALS CLEANING THAT UP IS EXPECTED TO COST TENS OF BILLIONS OF DOLLARS IN COMING YEARS RUST WAS FORMED AS A SEPARATE COMPANY AND TAKEN PUBLIC EARLIER THIS YEAR IN PART BECAUSE WMX TECHNOLOGIES THE WORLD'S BIGGEST TRASH HAULER WAS FRUSTRATED BY ITS FAILURE TO BREAK INTO THE TOP TIER OF GOVERNMENT CLEANUP CONTRACTORS SOME COMPANY OFFICIALS FELT THAT AS A TRASH HAULER OAK BROOK ILLBASED WMX TECHNOLOGIES WASN'T TAKEN AS SERIOUSLY AS IT SHOULD BE THAT THINKING ALSO CONTRIBUTED TO THE NAME CHANGE TWO OTHER WMX TECHNOLOGIES UNITS WHEELABRATOR TECHNOLOGIES INC AND CHEMICAL WASTE MANAGEMENT INC CONTRIBUTED ENGINEERING AND CONSTRUCTION AND HAZARDOUS WASTE CLEANUP OPERATIONS TO FORM RUST IN THE GOVERNMENT BUSINESS RUST COMPETES WITH BETTERESTABLISHED COMPANIES SUCH AS FLUOR CORP AND WESTINGHOUSE ELECTRIC CORP UNITS OF WMX TECHNOLOGIES DURING THE PAST YEAR LOST OUT ON TWO BIG DOE ENVIRONMENTAL CONTRACTS IRVINE CALIFBASED FLUOR THE BIGGEST PUBLICLY HELD ENGINEERING AND CONSTRUCTION COMPANY WON DOE'S FIVEYEAR 22 BILLION FERNALD OHIO CLEANUP CONTRACT THAT HELPED BOOST FLUOR'S BACKLOG TO MORE THAN 15 BILLION ITS 1992 REVENUE WAS 66 BILLION RUST BASED IN BIRMINGHAM ALA HAD A BACKLOG AT MARCH 31 OF 102 BILLION WITH 1992 REVENUE OF 144 BILLION A RUST SPOKESMAN SAID BIDDING ACTIVITY PICKED UP DURING THE SECOND QUARTER AND THAT THE BACKLOG WILL THEREFORE BE HIGHER THE COMPANY IS HOPEFUL ON THE DEFENSE JOBS HE SAID HE WOULDN'T ELABORATE RUST'S SECOND QUARTER RESULTS ARE EXPECTED TO BE RELEASED TODAY WITH ANALYSTS PREDICTING PROFIT OF BETWEEN 24 CENTS AND 26 CENTS A SHARE OR 196 MILLION TO 212 MILLION THAT COMPARES TO YEARAGO OPERATING INCOME OF 149 MILLION OR 19 CENTS A SHARE BEFORE A ONETIME ACCOUNTING GAIN OF 47 MILLION MADE NET INCOME 619 MILLION OR 77 CENTS A SHARE 9307190031 930719 INTERNATIONAL ITALIAN MAGISTRATES QUERY MONTEDISON FORMER CHAIRMAN BY MAUREEN KLINE SPECIAL TO THE WALL STREET JOURNAL MILAN GIUSEPPE GAROFANO FORMER CHAIRMAN OF TROUBLED MONTEDISON SPA TOLD INVESTIGATING MAGISTRATES THAT THE ITALIAN AGROCHEMICALS GIANT MADE WHAT WOULD BE AN ILLEGAL PAYMENT TO POLITICIANS AND HE BEGAN SHEDDING LIGHT ON ACCOUNTING PRACTICES WITHIN THE FERRUZZI GROUP WHICH CONTROLS MONTEDISON OVER THE WEEKEND MAGISTRATES QUESTIONED MR GAROFANO FOR 14 HOURS IN A MILAN PRISON MAINLY ABOUT FERRUZZI'S INTERNAL STRUCTURE IN ORDER TO DETERMINE WHERE RESPONSIBILITIES FOR ALLEGED FINANCIAL IRREGULARITIES MIGHT LIE ACCORDING TO LUCA MUCCI MR GAROFANO'S LAWYER MAGISTRATES ARE SCHEDULED TO INTERVIEW MR GAROFANO FURTHER TOMORROW MR GAROFANO WHO WAS ARRESTED IN GENEVA LAST WEEK AFTER FIVE MONTHS AS A FUGITIVE IS CONSIDERED A KEY FIGURE IN SEVERAL INVESTIGATIONS WHICH ARE BEING CONDUCTED TOGETHER UNDER THE CLEAN HANDS INVESTIGATION INTO POLITICAL CORRUPTION IN ITALY MR GAROFANO IS ACCUSED OF HAVING PAID A 250 MILLION LIRE 156600 KICKBACK TO THE CHRISTIAN DEMOCRATIC PARTY ON BEHALF OF MONTEDISON DURING HIS TENURE AS CHAIRMAN FROM 1990 UNTIL JANUARY BEFORE HE LEFT ITALY IN FEBRUARY WHEN A WARRANT WAS ISSUED FOR HIS ARREST MR GAROFANO TOLD INVESTIGATORS THE PAYMENT WAS A PERSONAL CONTRIBUTION TO THE PARTY BUT HE NOW SAYS THE MONEY CAME FROM MONTEDISON MONTEDISON'S 1992 ACCOUNTS INCLUDE A PROVISION OF 500 MILLION LIRE TO COVER POSSIBLE LIABILITY FOR THE ALLEGED KICKBACK IN A WIDER INVESTIGATION MAGISTRATES ARE EXAMINING ALLEGED FINANCIAL IRREGULARITIES AT MONTEDISON AND FERRUZZI FINANZIARIA SPA THE GROUP'S HOLDING COMPANY OF WHICH MR GAROFANO WAS ALSO CHIEF EXECUTIVE OFFICER THE FERRUZZI GROUP NOW STRUGGLING WITH A NET DEBT OF 15 TRILLION LIRE HAS TURNED OVER CONTROL TO A GROUP OF CREDITOR BANKS WHO ARE DEVISING A RESTRUCTURING PLAN SEPARATELY VITTORIO GHIDELLA A FORMER MANAGING DIRECTOR OF AUTO GIANT FIAT SPA AND FORMER CHAIRMAN OF THE SWISSBASED SAURER INDUSTRIAL GROUP SURRENDERED TO ITALIAN POLICE FRIDAY A WARRANT FOR MR GHIDELLA'S ARREST WAS ISSUED JUNE 29 ON CHARGES OF EMBEZZLEMENT ABUSE OF PUBLIC FUNDS AND FISCAL FRAUD ITALIAN AUTHORITIES HAVE BEEN INVESTIGATING ALLEGEDLY ILLEGAL FINANCIAL MANEUVERS AND TRANSFER OF MACHINERY BY OTO TRASM A LOCAL MECHANICAL COMPANY CONTROLLED BY MR GHIDELLA'S TURINBASED GRAZIANO TRASMISSIONI IN OTHER DEVELOPMENTS GIOVANNI GORIA A FORMER CHRISTIAN DEMOCRAT PREMIER AND AGRICULTURE MINISTER IS BEING INVESTIGATED FOR SUSPECTED EXTORTION IN CONNECTION WITH EUROPEAN COMMUNITY FUNDING ITALIAN NEWS REPORTS SAID FRIDAY 9307190029 930719 ECONOMY NEW CHIEF OF NEW YORK FED IS UNLIKELY TO PLAY KEY ROLE IN MONETARY POLICY BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILLIAM J MCDONOUGH THE NEWLY APPOINTED PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK ISN'T EXPECTED TO ROCK THE BOAT WHEN IT COMES TO MONETARY POLICY THE 59YEAROLD MR MCDONOUGH SUCCEEDED E GERALD CORRIGAN THE LONGTIME NEW YORK FED PRESIDENT WHO ANNOUNCED IN JANUARY THAT HE PLANNED TO STEP DOWN MR MCDONOUGH'S APPOINTMENT WHICH WAS ANNOUNCED FRIDAY AND HAD BEEN EXPECTED TAKES EFFECT TODAY LIKE MR CORRIGAN MR MCDONOUGH ISN'T EXPECTED TO PLAY A MAJOR ROLE IN THE FEDERAL RESERVE BOARD'S DELIBERATIONS ON MONETARY POLICY ALTHOUGH THE NEW YORK FED PRESIDENT SITS ON THE FEDERAL OPEN MARKET COMMITTEE WHICH SETS CREDIT POLICY THE POSITION IS BETTER KNOWN FOR HANDLING FINANCIAL EMERGENCIES AMONG OTHER THINGS THE NEW YORK FED OVERSEES MANY OF THE NATION'S LARGEST BANKS AS WELL AS FOREIGNEXCHANGE AND TREASURY BOND TRANSACTIONS IN A SENSE ONE OF THE JOB FUNCTIONS IS CHIEF CRISIS MANAGER DURING YOUR OCCASIONAL FINANCIAL PANICS SAID RICHARD HOEY CHIEF ECONOMIST AT DREYFUS CORP THE JOB IS AS MUCH AS MUCH A CRISISMANAGEMENT JOB AS A POLICY JOB DURING HIS TENURE MR CORRIGAN 51 YEARS OLD HELPED TO MANAGE MANY FINANCIAL CRISES FROM THE 1987 STOCK MARKET CRASH TO THE FAILURE OF DREXEL BURNHAM LAMBERT INC HE ALSO HAS SOUNDED WARNINGS BELLS ABOUT THE GROWTH OF THE DERIVATIVE SECURITIES MARKETS MR MCDONOUGH A FORMER VICE CHAIRMAN OF FIRST CHICAGO CORP HAS BEEN WITH THE NEW YORK FED SINCE EARLY 1992 MOST RECENTLY AS EXECUTIVE VICE PRESIDENT AND HEAD OF ITS OPEN MARKETS DESKS WHICH IMPLEMENT THE FED'S MONETARY POLICY DECISIONS HE IS THE FIRST NEW YORK FED PRESIDENT IN DECADES WHOSE CAREER WAS PREDOMINANTLY IN THE PRIVATE SECTOR SPENDING 22 YEARS AT FIRST CHICAGO AND OVERSEEING THE BANK'S INTERNATIONAL OPERATIONS HE BRINGS A GLOBAL PERSPECTIVE WHICH IS IMPORTANT TODAY SAID RICHARD THOMAS CHAIRMAN OF FIRST CHICAGO WHO BROUGHT MR MCDONOUGH TO THE BANK FROM THE STATE DEPARTMENT MR MCDONOUGH IS NOT AN EXPERT IN MR CORRIGAN'S FAVORITE TOPICS SUCH AS THE INTERNATIONAL PAYMENT SYSTEMS OR THE DERIVATIVES MARKET BUT FORMER COLLEAGUES SAY HE'S A QUICK LEARNER HE'S NOT A TECHNICIAN HE'S NOT AS BROAD OR DEEP AT THIS POINT IN TERMS OF THE ARCANE WORLD OF RISK MANAGEMENT OR OFFBALANCESHEET DERIVATIVES SAID MR THOMAS BUT HE'LL CATCH UP HE MIGHT HAVE ALREADY SECURITIES MARKETS PARTICIPANTS SAID MR MCDONOUGH'S APPOINTMENT WON'T AFFECT THE FED'S MONETARY POLICY AND MANY ANALYSTS WELCOMED THE CHOICE THE SHOCK VALUE IS ZERO AND THE MARKET EFFECT IS ZERO SAID MR HOEY HE'S REGARDED AS HAVING THE BACKGROUND AND CONFIDENCE OF THE FINANCIAL MARKETS FORMER COLLEAGUES SAY HE IS VERY MUCH AN ECLECTIC WHEN IT COMES TO MONETARY POLICY JAMES ANNABLE CHIEF ECONOMIST AT FIRST CHICAGO WHO WORKED CLOSELY WITH MR MCDONOUGH SAID THE NEW YORK FED CHIEF IS NOT A MONETARIST AND WILL LOOK AT VARIOUS INDICATORS WHEN DECIDING ON A MONETARY POLICY HE WON'T LOOK AT JUST ONE THING SUCH AS COMMODITY PRICES OR MONEY SUPPLY MR ANNABLE SAID AT A NEWS CONFERENCE FRIDAY MR MCDONOUGH SAID THAT INFLATION IS AT VERY ACCEPTABLE LEVELS THE ECONOMY IS GOING THROUGH A PERIOD OF STEADY ECONOMIC GROWTH NOT FAST AND WITH A VERY ACCEPTABLE LEVEL OF PRICE STABILITY IN ADDITION HE SAID MONETARY POLICY MUST BE BASED ON ACHIEVING SUSTAINED ECONOMIC GROWTH AND THAT REQUIRES PRICE STABILITY A PATRON OF THE ARTS WHO WOULD RATHER GO TO THE OPERA THAN A CHICAGO BULLS GAME MR MCDONOUGH RESIGNED IN 1989 BECAUSE OF A RIFT WITH BARRY SULLIVAN THEN CHAIRMAN OF FIRST CHICAGO PEOPLE CLOSE TO THE BANK SAY MR MCDONOUGH HOLDS A BACHELOR'S DEGREE FROM COLLEGE OF THE HOLY CROSS AND A MASTER'S DEGREE IN ECONOMICS FROM GEORGETOWN UNIVERSITY MR MCDONOUGH'S SELECTION CONTINUES THE TREND OF CONDUCTING NATIONAL SEARCHES AND THEN CHOOSING NEW FED BANK PRESIDENTS FROM INSIDE BOTH THE RICHMOND VA AND KANSAS CITY MO BANKS DID THE SAME THE PRESIDENT OF THE DALLAS FED WAS PLUCKED FROM THE RICHMOND FED WHERE HE WAS A LONGTIME EMPLOYEE THE INDEPENDENTMINDED CLEVELAND FED HOWEVER CHOSE AN ECONOMIST FROM A PRIVATE BANK WHO HAD WORKED FOR THE FED IN THE PAST HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS HAS CRITICIZED THE FED FOR FAILING TO DIVERSIFY ITS RANKS ALL 12 OF THE FED BANK PRESIDENTS ARE WHITE MEN FED BANK PRESIDENTS ARE CHOSEN BY THEIR PRIVATESECTOR BOARDS OF DIRECTORS SUBJECT TO THE CONSENT OF THE SEVENMEMBER FEDERAL RESERVE BOARD IN WASHINGTON NEITHER THE PRESIDENT NOR CONGRESS HAS ANY ROLE IN THEIR SELECTION DAVID WESSEL IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9307190028 930719 BUSINESS BRIEF GARNET RESOURCES CORP EXPLORATORY COLOMBIAN WELL YIELDS NO OIL COMPANY SAYS GARNET RESOURCES CORP HOUSTON SAID IT FOUND NO OIL IN ITS LATEST EXPLORATORY WELL IN COLOMBIA AND THAT PRODUCTION FROM OTHER OPERATIONS THERE WILL BE SCALED BACK BECAUSE OF TRANSPORTATION PROBLEMS THE ENERGY COMPANY SAID ITS MIRAFLOR NORTH NO 1 YIELDED WATER WITH NO OIL IN TESTS IT WILL BE CAPPED FOR POSSIBLE FUTURE USE AS A WATER DISPOSAL WELL IN ADDITION GARNET SAID ITS TOTAL COLOMBIAN PRODUCTION HAS BEEN TEMPORARILY CUT TO 4500 BARRELS A DAY FROM 7000 BECAUSE OF A BARGEFERRY ACCIDENT GARNET HAS SHUT ITS MARY NO 2 WELL UNTIL TRUCK AND BARGE OPERATIONS START AGAIN IN ABOUT A MONTH 9307190027 930719 MARKETING BRIEF NOTED WHO'S NEWS WILLIAM MORRIS AGENCY NAMED PUBLISHING EXECUTIVE JONI EVANS SENIOR VICE PRESIDENT OF ITS LITERARY DEPARTMENT BUT SAID SHE WILL ALSO WORK AS AN AGENT IN FILM AND TELEVISION MS EVANS 50 YEARS OLD HAS BEEN A PROMINENT EXECUTIVE AT SEVERAL PUBLISHING HOUSES INCLUDING RANDOM HOUSE INC WHICH PULLED THE PLUG ON HER BOUTIQUE PUBLISHING OPERATION TURTLE BAY BOOKS IN FEBRUARY TIMELIFE TELEVISION A UNIT OF TIME WARNER INC NAMED BERNARD MACLEOD VICE PRESIDENT FOR COPRODUCTION AND INTERNATIONAL DEVELOPMENT A NEW POSITION BASED IN LONDON AS ONE OF FOUR VICE PRESIDENTS MR MACLEOD 27 WILL PURSUE PRODUCTION PARTNERS AND DISTRIBUTORS FOR THE UNIT'S TELEVISION DOCUMENTARIES IN INTERNATIONAL MARKETS 9307190026 930719 VW STOCK FALLS ON ALLEGATIONS AGAINST LOPEZ SHARES DECLINE 14 DESPITE CAR MAKER'S PREDICTION OF PROFITABILITY IN 1994 BY WALL STREET JOURNAL REPORTERS AUDREY CHOI IN DUSSELDORF GERMANY AND JOSEPH B WHITE IN DETROIT WITH THE INDUSTRIAL ESPIONAGE ALLEGATIONS HOUNDING VOLKSWAGEN AG AND ITS CHIEF COSTCUTTER J IGNACIO LOPEZ DE ARRIORTUA SHOWING NO SIGN OF ABATING GERMAN INVESTORS BID DOWN VW SHARES DESPITE THE COMPANY'S EFFORTS TO SPREAD GOOD NEWS THE 14 DECLINE IN VW'S SHARE PRICE IN AN OTHERWISE RISING GERMAN STOCK MARKET FRIDAY ADDS TO THE PRESSURE MOUNTING ON MR LOPEZ HIS BOSS VW CHAIRMAN FERDINAND PIECH AND VW'S SUPERVISORY BOARD VW REPORTED FRIDAY THAT JUNE VEHICLE SALES FELL 29 BUT ITS FINANCE DIRECTOR SOUGHT TO OFFSET THAT NEWS BY PREDICTING THE COMPANY WILL RETURN TO PROFITABILITY IN 1994 THAT VW STOCK SLID 520 MARKS 302 ANYWAY TO CLOSE AT 36050 MARKS 20916 WAS BLAMED BY ANALYSTS ON THE ACCUSATIONS SWIRLING AROUND MR LOPEZ FORMERLY GENERAL MOTORS CORP'S TOP PURCHASING EXECUTIVE AS CALLS FOR HIS OUSTER BEGIN TO RISE FROM THE GERMAN MEDIA MR LOPEZ FACES A CRUCIAL TEST TOMMORROW WHEN A GERMAN COURT IN HAMBURG IS EXPECTED TO DECIDE WHETHER THE GERMAN NEWS MAGAZINE DER SPIEGEL HAD EVIDENCE TO BACK UP A LENGTHY MAY ARTICLE THAT SLAMMED MR LOPEZ THE ARTICLE OUTLINED GM'S CONTENTION THAT WHEN MR LOPEZ AND SEVERAL ASSOCIATES DEFECTED TO VW FROM GM AND ITS ADAM OPEL AG SUBSIDIARY THEY PILFERED BOXES FULL OF CONFIDENTIAL GM DOCUMENTS AND TURNED THEM OVER TO VW AT A HEARING THURSDAY THREE GM MANAGERS GAVE POTENTIALLY DAMAGING TESTIMONY AGAINST MR LOPEZ ON DER SPIEGEL'S BEHALF CONTRADICTING HIS SWORN STATEMENTS ON SEVERAL KEY POINTS AND FRIDAY GM CONFIRMED THAT THE US ATTORNEY IN DETROIT HAS LAUNCHED AN INVESTIGATION INTO THE AFFAIR A GERMAN CRIMINAL INVESTIGATION ALREADY HAS PRODUCED EVIDENCE THAT SECRET GM DOCUMENTS WERE STASHED IN AN APARTMENT RENTED BY TWO OF MR LOPEZ'S ASSOCIATES FRIDAY TWO GERMAN PUBLICATIONS DIE ZEIT AND DIE WOCHE EDITORIALIZED THAT MR LOPEZ AND MR PIECH COULD FALL UNLESS THE CONTROVERSY IS CONTAINED QUICKLY MR LOPEZ SEEMED UNPERTURBED FRIDAY AS HE RECEIVED A HERO'S WELCOME DURING AN APPEARANCE IN BILBAO SPAIN IN HIS NATIVE BASQUE COUNTRY POLITELY DISMISSING A FLOCK OF JOURNALISTS WHO SWAMPED HIM WITH QUESTIONS ABOUT THE FIGHT WITH GM HE SAID I'M JUST AN ENGINEER NOT A LAWYER MR PIECH AND VW'S BOARD HAVE STOOD BY MR LOPEZ BUT VW'S STATEMENTS OF SUPPORT FRIDAY WERE SOMEWHAT LESS RESOUNDING AFTER THE BARRAGE OF BAD NEWS FOR THE EXECUTIVE WE ABIDE BY THE PRINCIPLE OF 'INNOCENT UNTIL PROVEN GUILTY' ONE OFFICIAL CLOSE TO VW SAID ADDED AN OFFICIAL SPOKESMAN FOR VW THE ACCUSATIONS ARE NOT AGAINST VOLKSWAGEN AG AS A COMPANY IT CONCERNS INDIVIDUALS IT IS NOT OUR PLACE TO COMMENT THAT WASN'T MR PIECH'S ATTITUDE LAST MONTH WHEN HE DECLARED AT THE ANNUAL SHAREHOLDERS MEETING I WOULD LIKE TO EMPHASIZE MY CONFIDENCE IN MR LOPEZ AND TAKE HIM IN PROTECTION AGAINST THE ACCUSATIONS THAT HAVE BEEN BROUGHT AGAINST HIM 9307190025 930719 BUSINESS BRIEF FORD MOTOR CO GERMAN DIVISION SAYS SALES WERE OFF 11 IN FIRST HALF SALES BY FORDWERKE AG THE GERMAN OPERATING DIVISION OF USBASED FORD MOTOR CO FELL 11 IN THE FIRST HALF TO 114 BILLION MARKS 661 BILLION FROM THE YEAR EARLIER LEVEL OF 128 BILLION MARKS ACCORDING TO CHAIRMAN JOHN HARDIMAN ALTHOUGH SALES WERE DOWN 11 BOTH PRODUCTION AND THE NUMBER OF CARS SOLD SLUMPED EVEN FURTHER MR HARDIMAN SAID AT FORDWERKE'S ANNUAL MEETING PRODUCTION IN THE FIRST HALF TUMBLED BY 15 TO 458000 CARS WHILE THE NUMBER OF CARS SOLD PLUNGED BY 17 TO 469000 CARS HE SAID SPECIFIC YEAREARLIER PRODUCTION AND SALES FIGURES WEREN'T PROVIDED THE NUMBER OF CARS SOLD EXCEEDED PRODUCTION BECAUSE DEALERS WERE RUNNING DOWN INVENTORIES IN THE FIRST HALF FORDWERKE BLAMED A LARGE PART OF ITS TROUBLES ON THE DEVALUATION OF THE POUND THE LIRA THE PESETA AND SWEDISH KRONA AGAINST THE MARK BY BETWEEN 14 AND 21 OVER THE PAST YEAR ABOUT 50 OF FORDWERKE EXPORTS ARE DESTINED FOR COUNTRIES THAT HAVE DEVALUED THEIR CURRENCIES 9307190024 930719 WHAT'S NEWS WORLDWIDE JAPAN'S LONGRULING PARTY LOST ITS GOVERNING MAJORITY JAPANESE VOTERS IN STRIPPING THE LIBERAL DEMOCRATIC PARTY OF ITS MAJORITY GAVE STRONG BACKING TO NEW CONSERVATIVE PARTIES RUN BY YOUNGER POLITICIANS THE ELECTION RESULTS MARKED THE FIRST TIME IN 38 YEARS THAT THE LDP HAS LOST ITS DOMINANCE OVER THE LOWER HOUSE OF PARLIAMENT COMPUTER PROJECTIONS GAVE THE LDP 223 SEATS OF THE 511 SEATS AT STAKE NO PARTY EMERGED WITH A CLEAR MANDATE SEVERAL LDP MEMBERS CALLED ON PRIME MINISTER MIYAZAWA TO RESIGN IN ORDER TO TAKE RESPONSIBILITY FOR HIS PARTY'S UNPRECEDENTED DEFEAT MORE LEVEES FAILED ALONG THE MISSISSIPPI AS RAIN DRENCHED THE REGION SURGING WATERS PUNCHED NEW HOLES IN LEVEES ALONG THE MISSISSIPPI AND MISSOURI RIVERS FLOODING MORE FARMS TOWNS ROADS AND RAIL LINKS THE CREST OF THE FLOOD WATERS REACHED ST LOUIS AND METEOROLOGISTS SAID HEAVY RAINS COULD LAST SEVERAL MORE WEEKS CLINTON TOLD MIDWEST GOVERNORS ON SATURDAY THAT HE WOULD ASK CONGRESS FOR 25 BILLION AS A FIRST INSTALLMENT IN DISASTER AID THE PRESIDENT SAYING THE FLOODS HAD ALL BUT EXHAUSTED THE RESOURCES OF THE NATIONAL GUARD ANNOUNCED THAT HE WAS CONSIDERING MOBILIZING FEDERAL TROOPS CLINTON PROBABLY WILL FIRE FBI DIRECTOR SESSIONS THIS WEEK AN ADMINISTRATION OFFICIAL SAID AT A SATURDAY MEETING WITH ATTORNEY GENERAL RENO IT WAS MADE CLEAR TO SESSIONS THAT HE WON'T BE STAYING ON THE JOB THE OFFICIAL SAID PAKISTAN'S PRIME MINISTER RESIGNED AND DISSOLVED PARLIAMENT BOWING TO PRESSURE FROM THE MILITARY AND FROM OPPOSITION LAWMAKERS LED BY HIS PREDECESSOR BENAZIR BHUTTO THE ANNOUNCEMENT BY NAWAZ SHARIF WAS COUPLED WITH THE RESIGNATION OF HIS POLITICAL RIVAL PRESIDENT GHULAM ISHAQ KHAN UNDER AN ARMYBROKERED ACCORD PENTAGON OFFICIALS PREDICTED THAT A NEW POLICY PARTIALLY LIFTING A BAN ON HOMOSEXUALS IN THE MILITARY WOULD SUSTAIN A LIKELY COURT CHALLENGE THE DON'T ASK DON'T TELL POLICY IS EXPECTED TO BE ANNOUNCED BY CLINTON THIS WEEK BOSNIAN SERB FORCES PRESSED THEIR DRIVE TO TAKE A STRATEGIC MOUNTAIN AT THE EDGE OF SARAJEVO MEANWHILE BOSNIA'S SERB LEADER SET A DEADLINE OF TOMORROW FOR THE MUSLIMLED GOVERNMENT TO ACCEPT THE PARTITION OF BOSNIA ALONG ETHNIC LINES CLINTON REASSERTED SUPPORT FOR HIS SURGEON GENERAL NOMINEE JOYCELYN ELDERS AS SHE GAVE UP HER ARKANSAS POST SHE HAD BEEN UNDER FIRE FOR RECEIVING A FEDERAL CONSULTING FEE WHILE DRAWING A SALARY AS DIRECTOR OF THE STATE'S DEPARTMENT OF HEALTH SUSPECTED MUSLIM EXTREMISTS FIRED ON A CAR CARRYING AN ARMY GENERAL IN APPARENT REVENGE FOR THE EGYPTIAN GOVERNMENT'S HANGINGS OF FIVE RADICALS FOUR PEOPLE DIED AND SIX WERE WOUNDED FROM THE SHOOTOUTS NEAR EGYPT'S CITY OF THE DEAD LEADING HAITIAN LAWMAKERS SIGNED A PACT THAT WILL REVAMP PARLIAMENT AND PARDON THE SOLDIERS WHO OUSTED PRESIDENT ARISTIDE SATURDAY'S AGREEMENT WAS REACHED DURING NEGOTIATIONS AT THE UN BLACK AND WHITE CONSERVATIVES QUIT SOUTH AFRICAN DEMOCRACY TALKS OVER THE WEEKEND BUT THE GOVERNMENT AND THE AFRICAN NATIONAL CONGRESS SAID THE PREPARATIONS WOULD PROCEED FOR APRIL ELECTIONS RUSSIA PLEDGED TO JOIN AN INTERNATIONAL ACCORD LIMITING THE SPREAD OF BALLISTIC MISSILES AND THE US AGREED THAT MOSCOW COULD GO AHEAD WITH AT LEAST PART OF A SALE OF ROCKET ENGINES TO INDIA FEDERAL AGENTS ARRESTED A NEW JERSEY MAN AND CHARGED HIM WITH CONSPIRING TO KILL EGYPT'S PRESIDENT DURING A VISIT TO THE US EARLIER THIS YEAR A SPOKESWOMAN FOR THE US ATTORNEY'S OFFICE SAID OFFICIALS SAID MUBARAK HAD BEEN MARKED FOR ASSASSINATION BY MEMBERS OF A MUSLIM GROUP A THIRD SMUGGLING SHIP DOCKED AT A MEXICAN PORT WITH MORE THAN 200 CHINESE PASSENGERS WHO WERE TO BE DEPORTED IMMEDIATELY BY MEXICO TWO OTHER SHIPS WITH ABOUT 430 PEOPLE DOCKED SATURDAY AFTER BEING DETAINED OFF MEXICO FOR 10 DAYS BY THE US COAST GUARD GREG NORMAN OF AUSTRALIA WON THE BRITISH OPEN GOLF CHAMPIONSHIP IN SANDWICH ENGLAND BY TWO STROKES 9307190023 930719 BUSINESS BRIEF JWP INC AGREEMENT IS REACHED TO SELL INFORMATION SERVICES UNIT JWP INC RYE BROOK NY SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO SELL ITS INFORMATION SERVICES UNIT AS PART OF A RECENTLY ANNOUNCED RESTRUCTURING PLAN JWP IS BEING RESTRUCTURED TO FOCUS ON ITS CORE ELECTRICAL AND MECHANICAL SERVICES BUSINESS WHILE THE UNIT'S SALE WON'T RESULT IN A MATERIAL GAIN OR LOSS THE COMPANY WILL BE RELEASED FROM 210 MILLION OF RELATED DEBT OBLIGATIONS INFORMATION SERVICES WILL BE PURCHASED BY A NEW CORPORATION WHOSE PRINCIPAL STOCKHOLDER IS DORT A CAMERON III A PRIVATE INVESTOR JOINED BY EMPLOYEES OF THE UNIT THE TRANSACTION WHICH IS SUBJECT TO THE APPROVAL OF JWP'S LENDERS IS EXPECTED TO CLOSE LATER THIS MONTH SEPARATELY THE COMPANY SAID IT WON'T SELL ITS JAMAICA WATER SUPPLY SUBSIDIARY AS ANNOUNCED IN APRIL 1992 BECAUSE LITIGATION AND REGULATORY MATTERS CONCERNING THE UNIT HAVEN'T BEEN RESOLVED YET 9307190022 930719 HEARD ON THE STREET BROKERAGE FIRMS THAT UNDERWRITE A STOCK ISSUE USUALLY HAVE KIND WORDS FOR IT STUDY SHOWS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN EXPERIENCED INVESTORS HEAR A BROKERAGEHOUSE ANALYST RECOMMEND A STOCK THEY CHECK TO SEE WHETHER THE ANALYST'S FIRM HAPPENS TO BE THE UNDERWRITER THAT SOLD THE STOCK TO THE PUBLIC SMART MOVE A NEW STUDY BY TWO STANFORD UNIVERSITY RESEARCHERS SHOWS THAT BROKERAGE FIRMS ARE CLEARLY INCLINED TO SAY KIND THINGS ABOUT THE STOCKS THEY UNDERWRITE UNDERWRITERS HELP COMPANIES ISSUE STOCKS OR BONDS THEY TYPICALLY BUY THE ENTIRE ISSUE FROM THE COMPANY THEN SELL IT TO INVESTORS OFTEN THROUGH A SYNDICATE OF SEVERAL COOPERATING FIRMS AS A FEE THE UNDERWRITER KEEPS A PORTION OF THE PROCEEDS OFTEN 4 TO 7 ON STOCK OFFERINGS BECAUSE THE UNDERWRITING BUSINESS IS LUCRATIVE BROKERAGE HOUSES FIGHT HARD FOR IT HAVING AN ANALYST WHO PUBLISHES DETAILED REPORTS ON A COMPANY HELPS TO SNARE THE COMPANY'S UNDERWRITING BUSINESS SO LONG AS THOSE REPORTS AREN'T NASTY MAUREEN MCNICHOLS A PROFESSOR AT STANFORD'S GRADUATE SCHOOL OF BUSINESS AND HSIOUWEI LIN A GRADUATE STUDENT EXAMINED BUY AND SELL RECOMMENDATIONS BY ANALYSTS WHO WORKED FOR A STOCK'S LEAD UNDERWRITER AND THOSE OF ANALYSTS WITHOUT ANY CONNECTION TO THE UNDERWRITING SYNDICATE THE STUDY INVOLVED RECOMMENDATIONS MADE IN 198891 ON ABOUT 300 STOCKS IT EXAMINED BOTH THE UNDERWRITERS' AND NONUNDERWRITERS' VIEW OF EACH STOCK BOTH SETS OF ANALYSTS WOULD RATHER SAY BUY THAN SELL AMONG NONUNDERWRITERS 56 OF RECOMMENDATIONS WERE TO BUY 71 WERE TO SELL AND 37 WERE NEUTRAL OR HOLD SINCE SELL RECOMMENDATIONS ARE RARE ON WALL STREET HOLD IS SOMETIMES A EUPHEMISM FOR SELL BUT UNDERWRITERS HAD ALL BUT ABOLISHED THE WORD SELL FROM THEIR VOCABULARY ONLY 07 OF THEIR RECOMMENDATIONS WERE SELLS FULLY 715 OF THEIR RECOMMENDATIONS ON STOCKS THEY UNDERWROTE WERE BUYS COMMENTATORS OFTEN EXPLAIN DAILY MOVES IN THE STOCK MARKET BY SHIFTS IN INTEREST RATES INVESTORS IT'S OFTEN SAID BID STOCKS UP WHEN INTEREST RATES FALL IT'S NOT THAT SIMPLE A COUPLE OF NEW STUDIES SHOW THAT ON A DAYTODAY BASIS THE GYRATIONS OF INTEREST RATES DON'T EXPLAIN STOCKPRICE MOVEMENTS MELISSA BROWN HEAD OF QUANTITATIVE RESEARCH AT PRUDENTIAL SECURITIES LOOKED AT 101 TRADING DAYS THIS YEAR WHEN THE YIELD ON 30YEAR TREASURY BONDS FELL WHICH IS SUPPOSED TO BE BULLISH FOR THE STOCK MARKET STOCKS ROSE ONLY 55 OF THE TIME WHEN THE YIELD ROSE WHICH IS CONSIDERED BAD STOCKS STILL ROSE 50 OF THE TIME MS BROWN THEN CHECKED THE PREVIOUS THREE YEARS FROM 1990 THROUGH 1992 SAME STORY ON DAYS WHEN YIELDS FELL STOCKS ROSE 51 OF THE TIME WHEN YIELDS ROSE STOCKS ALSO GAINED 51 OF THE TIME NED DAVIS RESEARCH CHECKED THE BEHAVIOR OF STOCKS AGAINST A DIFFERENT INTEREST RATE THAT OF 90DAY TREASURY BILLS SINCE OCT 11 1990 THE BOTTOM OF THE LAST BEAR MARKET THE DOW JONES INDUSTRIAL AVERAGE GAINED A TOTAL OF 607 POINTS ON DAYS WHEN RATES WERE GOING UP THE WRONG WAY AND ONLY 512 POINTS ON DAYS WHEN RATES WERE FALLING THIS DOESN'T MEAN THAT INVESTORS DON'T CARE ABOUT INTEREST RATES THEY CLEARLY ARE AN INFLUENCE ON THE STOCK MARKET BUT THE INFLUENCE ISN'T AS SIMPLE AND DIRECT AS COMMENTATORS OFTEN IMPLY CONTRARY TO POPULAR BELIEF THE DEBTTOEQUITY RATIO AT MOST COMPANIES IN THE STANDARD & POOR'S 500STOCK INDEX ROSE LAST YEAR KIDDER PEABODY'S EASTON RAGSDALE SAYS MR RAGSDALE A QUANTITATIVE ANALYST RECENTLY COMPLETED A STATISTICAL STUDY OF THE S&P 500 USING A FRAMEWORK CALLED THE DUPONT MODEL AMONG HIS FINDINGS THE AVERAGE S&P 500 COMPANY NOW HAS DEBT EQUAL TO 91 OF STOCKHOLDERS' EQUITY THAT'S UP FROM 85 AT THE END OF 1991 AND 58 A DECADE AGO TO BE SURE SOME FIRMS ISSUED STOCK LAST YEAR TO RETIRE DEBT BUT WRITEOFFS LOWERED STOCKHOLDERS' EQUITY THE ESTIMATED SUSTAINABLE PROFITGROWTH RATE AT THE TYPICAL COMPANY IS ONLY 36 WELL BELOW THE LONGTERM AVERAGE OF 7 FOR THE PERIOD 197592 GROSS PROFIT MARGINS BEFORE INTEREST PAYMENTS AND TAXES HAVE SLIPPED TO ABOUT 118 OF SALES FROM A LONGTERM AVERAGE OF 143 TURNOVER OR SALES PER DOLLAR OF ASSETS INVESTED IN THE BUSINESS IS DOWN TO 526 CENTS PER DOLLAR INVESTED TURNOVER PEAKED IN 198081 AT 816 CENTS ITS LONGTERM AVERAGE IS 687 CENTS ON THE BRIGHT SIDE THE AVERAGE BIG CORPORATION PAYS A SMALLER PART OF ITS PROFIT IN TAXES THAN IT DID A FEW YEARS AGO INTEREST BURDENS ARE LIGHTER BECAUSE INTEREST RATES HAVE DECLINED AND THE DIVIDENDPAYOUT RATIO HAS BEEN UNUSUALLY HIGH IF IT REVERTS TO THE NORMAL 50 THAT WOULD ALLOW FOR MORE REINVESTMENT IN THE BUSINESS PERHAPS SPURRING BETTER PROFIT GROWTH 9307190021 930719 BUSINESS BRIEF GENERAL MOTORS CORP SATURN'S 1994 MODEL PRICES ARE RAISED AVERAGE OF 35 GENERAL MOTORS CORP'S SATURN UNIT SAID IT IS RAISING ITS 1994 MODEL PRICES AN AVERAGE OF 35 THE INCREASES RANGE FROM 08 FOR SATURN'S SC2 COUPE 12895 UP FROM LAST YEAR'S 12795 TO 64 FOR THE DIVISION'S SL SEDAN 9995 UP FROM LAST YEAR'S 9395 SATURN TROY MICH ALSO RAISED PRICES ON VARIOUS OPTIONS THE INCREASES RANGED FROM 29 FOR AIR CONDITIONING 885 UP FROM LAST YEAR'S 860 TO 51 FOR A PREMIUM OPTIONS PACKAGE THAT INCLUDES POWER WINDOWS AND TEARDROP ALLOY WHEELS 2065 COMPARED WITH LAST YEAR'S 1965 SEPARATELY SATURN ALSO RAISED TRANSPORTATION CHARGES FOR ALL ITS AUTOMOBILES BY 15 BRINGING TRANSPORTATION CHARGES FOR THE 1994 MODEL YEAR TO 330 9307190019 930719 BUSINESS BRIEF PACCAR 2NDPERIOD NET ROSE SHARPLY ON SALES OF LONGHAUL TRUCKS BELLEVUE WASH PACCAR INC DRIVEN BY STRONG SALES OF ITS LONGHAUL TRUCKS SAID SECONDQUARTER NET INCOME NEARLY TREBLED FROM A YEAR AGO THE COMMERCIALTRUCK MAKER SAID NET SURGED TO 328 MILLION OR 97 CENTS A SHARE FROM 111 MILLION OR 33 CENTS A SHARE SALES JUMPED 46 TO 838 MILLION FROM 5725 MILLION THE RESULTS SOMEWHAT EXCEEDED EXPECTATIONS BY ANALYSTS IN NATIONAL OVERTHECOUNTER TRADING FRIDAY PACCAR'S STOCK CLOSED AT 59 UP 25 CENTS PACCAR IS RIDING AN INDUSTRYWIDE TREND OF RISING TRUCK SALES AS COMPANIES AND OWNEROPERATORS THAT DEFERRED REPLACEMENT OF FLEETS DURING THE RECESSION ARE NOW PLACING ORDERS LONGHAUL TRUCKS ARE TYPICALLY REPLACED EVERY THREE TO FIVE YEARS AFTER A RECESSIONARY SLUMP ANALYSTS SAID THE NEWTRUCK SALES BEGAN PICKING UP IN LATE 1991 AND HAVE BEEN BUILDING SINCE STEVEN COLBERT AN ANALYST FOR PRUDENTIAL SECURITIES INC IN SAN FRANCISCO SAID SALES ARE ALSO BEING BOOSTED BY THE SLOWLY RECOVERING ECONOMY AS INDUSTRIAL PRODUCTION GROWS AND MORE TONNAGE IS BEING SHIPPED AS A RESULT MR COLBERT SAID WE SHOULD SEE CONTINUED TRUCK IMPROVEMENT IN THE NEXT TWO QUARTERS AS WELL LONGHAUL TRUCKING CARRIERS BY CONTRAST AREN'T DOING AS WELL BECAUSE OF HIGHER FUEL COSTS AND DROPS IN PRICE LEVELS THIS HAS HELPED TO DEPRESS PROFITS AT BIG CARRIERS LIKE CONSOLIDATED FREIGHTWAYS INC PALO ALTO CALIF AND ROADWAY SERVICES INC AKRON OHIO AT PACCAR WHOSE MAIN LINE INCLUDES KENWORTH AND PETERBILT TRUCKS CHARLES M PIGGOT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE US TRUCKORDER BACKLOG MAINTAINED ITS UPWARD TREND FROM PRIOR QUARTERS' LEVELS HE ADDED THAT INTERNATIONAL OPERATIONS INCLUDING AUSTRALIA CANADA AND MEXICO IMPROVED SIGNIFICANTLY IN THE SECOND QUARTER IN THE FIRST HALF PACCAR'S NET INCOME ROSE TO 602 MILLION OR 178 A SHARE ON SALES OF 160 BILLION FROM YEAREARLIER NET OF 219 MILLION OR 65 CENTS A SHARE ON SALES OF 116 BILLION 9307190018 930701 LEISURE & ARTS TV OKLAHOMA' REVISITED SPORTS GALORE AND A POPS GALA BY DOROTHY RABINOWITZ MR ROGERS DELIVERS SOME INTERESTING INFORMATION IN THE COURSE OF HIS HOSTING DUTIES WE LEARN THAT THE LATE JAMES DEAN WAS ORIGINALLY CONSIDERED TOP CONTENDER FOR THE MALE LEAD CURLEY ULTIMATELY PLAYED FORTUNATELY BY GORDON MACRAE UNTIL IT BECAME CLEAR THAT DEAN COULDN'T SING THE HOST MAKES A FAIR NUMBER OF ADDITIONAL LESS COMPELLING OBSERVATIONS AMONG THEM A DECLARATION THAT THERE ARE GOOD GUYS AND BAD GUYS IN OKLAHOMA AND THAT FAMILIES SHOULD THEREFORE WATCH IT BECAUSE IT'S A GOOD BALANCE OF WHAT LIFE IS ALL ABOUT STILL THERE'S NOT MUCH THAT CAN SPOIL THIS FILM OF THE GREATEST OF AMERICAN MUSICALS STARRING IN ADDITION TO MR MACRAE SHIRLEY JONES AND A SINGING ROD STEIGER NOT MUCH THAT IS EXCEPT COMMERCIALS WHICH WILL LIKE JUNE BE BUSTING OUT ALL OVER 810 PM EDT ON TNT THURSDAY JULY 1 WOMEN'S SEMIFINALS 15 PM EDT FRIDAY JULY 2 MORE WOMEN'S SEMIFINALS 1250250 AM EDT MEN'S SEMIFINALS 15 PM EDT SATURDAY JULY 3 WOMEN'S FINAL 9 AM1 PM EDT SUNDAY JULY 4 MEN'S FINAL 9 AM3 PM EDT ALL ON NBC THE GENERAL WHO WOULD GO ON TO COMMAND THE WAR IN VIETNAM WAS THIS FILM INSTRUCTS US THE PRODUCT OF A FAIRLY IDYLLIC SOUTHERN CHILDHOOD AND AN EARLY STAR HE WAS AS A YOUNG MAN AND WEST POINT CADET NOTABLY ACCOMPLISHED PERSONABLE HANDSOME IN SHORT IN EVERY WAY APPEALING THE YEARS SEEM NOT TO HAVE CHANGED THE GENERAL MUCH IN THE LATTER REGARD WHAT ANY VIEWER OF THIS FILM BY MARTIN AND LINDA WALDMAN MUST NOTE ABOVE ALL IS HOW ATTRACTIVE A FIGURE THIS GENERAL IS FROM BEGINNING TO END THAT WOULD INCLUDE HIS TIME UNDER THE HARSH MEDIA SPOTLIGHT AS HE UNDERTOOK A LIBEL SUIT AGAINST CBS AND 60 MINUTES WHICH CHARGED HIM WITH DELIBERATE MISREPRESENTATION OF ENEMY FORCES WITH OR WITHOUT THE PRESENCE OF MIKE WALLACE WHO APPEARS HERE TO ISSUE AN APOLOGY OF SORTS FOR THE IMBALANCE OF THAT CBS REPORT THIS WOULD BE ONE OF THE MORE IMPRESSIVE CHAPTERS OF BIOGRAPHY THIS GALA IS DEDICATED TO JOHN WILLIAMS NOW IN HIS LAST SEASON AS CONDUCTOR OF THE BOSTON POPS ORCHESTRA RICHARD DREYFUSS THE HOST INTRODUCES A FILM MONTAGE ON WILLIAMS'S MOVIE SCORES WHICH INCLUDE THE ONE FOR JAWS BEVERLY SILLS JAMES TAYLOR AND MARVIN HAMLISCH ARE ON HAND AS WELL AS ROSEMARY CLOONEY AND LINDA RONSTADT SINGING NELSON RIDDLE ARRANGEMENTS NOTABLY THE CREAM OF GERSHWIN WHO COULD ASK FOR ANYTHING MORE WHY GLORIA STEINEM SHOULD BE NARRATING THIS WORK ABOUT PSYCHOLOGICAL DISORDER IS AT FIRST SOMETHING OF A PUZZLE BUT NOT FOR LONG IN SHORT ORDER IT BECOMES CLEAR THAT SEXUAL ABUSE THAT TRENDY PURSUIT CURRENTLY HELD ACCOUNTABLE FOR VIRTUALLY EVERY HUMAN ILL IS ACCORDING TO THIS PRODUCTION ALSO THE ROOT CAUSE OF THAT INCREASINGLY FASHIONABLE AFFLICTION THE SOCALLED MULTIPLEPERSONALITY DISORDER THIS WRETCHEDLY SILLY PRODUCTION BY MICHAEL MIERENDORF PURPORTS TO SHOW VICTIMS OF THE SYNDROME AS THEY ACTUALLY RECOVER THEIR MEMORIES OF SEX ABUSE THE SUBJECTS WRITHE AND ROLL AROUND FOR THE CAMERAS DECLAIMING IN UNEARTHLY VOICES TILL THEY FINALLY DELIVER UP THEIR REPRESSED MEMORIES THE OBVIOUS FAKERY OF THESE FLASHBACKS SOME OF WHICH SEEM TO HAVE TAKEN THEIR INSPIRATION FROM THE EXORCIST DOESN'T DAUNT THE THERAPISTS ON THE CONTRARY THE PURE GRATIFICATION ON THE FACE OF THE PSYCHOLOGIST NODDING SAGELY AS THE PATIENT AT LONG LAST UTTERS THE MAGIC WORDS ABOUT SEX AND ABUSE SAYS WORLDS ABOUT THIS FILM AND ITS CLINICAL VALIDITY THIS IS THE MEMORY THE DOCTOR WAS WAITING FOR AND THE PATIENT OBLIGINGLY DELIVERED BY THIS TIME WHAT THE REST OF US ARE WAITING FOR WITH NO LESS EAGERNESS IS FOR THE DRIVEL TO END SEE RELATED LETTER LETTERS TO THE EDITOR IT'S ALL IN THE MIND RELIVING SEXUAL ABUSE WSJ JULY 19 1993 9307010032 YY93 MM07 9307190017 930719 INTERNATIONAL WASHINGTON INSIGHT NORTH KOREA'S MISSILE SALES IN MIDEAST ALONG WITH NUCLEAR ISSUE RAISE CONCERN BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS THE US TRIES TO DISSUADE NORTH KOREA FROM DEVELOPING NUCLEAR WEAPONS THERE IS GROWING CONCERN ABOUT ANOTHER OF PYONGYANG'S ACTIVITIES SELLING BALLISTIC MISSILES IN THE VOLATILE MIDDLE EAST NORTH KOREA IS SELLING TO IRAN LIBYA AND SYRIA ITS SCUDB AND SCUDC MISSILES WHICH CAN CARRY A NUCLEAR DEVICE IT ALSO PLANS TO EXPORT ITS NEW NODONG1 MISSILE WHICH HAS THE RANGE TO REACH ISRAEL AND EVEN THREATEN PARTS OF EUROPE FROM LIBYA ACCORDING TO US ANALYSTS EQUALLY DISTURBING TO US OFFICIALS NORTH KOREA IS SELLING THE TECHNOLOGY AND MANAGERIAL KNOWHOW THAT WILL PERMIT THESE NATIONS TO PRODUCE THEIR OWN MISSILES FROM THE PERSPECTIVE OF THE US AND THE WEST IN GENERAL IT'S THE INDIGENOUS PRODUCTION CAPABILITY THAT'S THE REAL PROBLEM ONCE THESE COUNTRIES GET IT THE HORSE IS OUT OF THE BARN SAYS TIMOTHY MCCARTHY SENIOR ANALYST AT THE PROGRAM FOR NONPROLIFERATION STUDIES A NONPROFIT GROUP THAT COMPILES DATA ON THE SPREAD OF WEAPONS THE STATE DEPARTMENT SAYS THE US IS WORKING WITH ITS FRIENDS AND ALLIES INCLUDING RUSSIA CHINA AND SOUTH KOREA TO PERSUADE NORTH KOREA TO TERMINATE ITS MISSILE PROLIFERATION ACTIVITIES THE US ALSO IS ENCOURAGING DIPLOMATIC INITIATIVES BY ISRAEL BUT WITHOUT DIRECT DIPLOMATIC OR ECONOMIC RELATIONS WASHINGTON ITSELF HAS SCANT LEVERAGE OVER PYONGYANG MOREOVER THE EFFORT WILL BECOME EVEN MORE DIFFICULT AS NORTH KOREA SELLS OTHER NATIONS THE KNOWHOW TO MANUFACTURE THEIR OWN MISSILES SOME ANALYSTS SAY THAT NORTH KOREA THROUGH ITS LYONGAKSAN IMPORT CORP ALREADY IS SELLING FULL PRODUCTION PLANTS TO LIBYA IRAN AND SYRIA BUT OTHER EXPERTS SAY THAT SO FAR THEY ONLY SEE INDICATIONS THAT PYONGYANG IS HELPING THESE NATIONS SET UP ASSEMBLY FACILITIES ESTABLISHING SUCH ASSEMBLY PLANTS IN LIBYA IRAN AND SYRIA WOULD HELP NORTH KOREA EVADE SURVEILLANCE OF ITS MISSILE SALES SAYS LARRY NIKSCH A SPECIALIST IN ASIAN AFFAIRS AT THE CONGRESSIONAL RESEARCH SERVICE WHEN NORTH KOREA SHIPS WHOLE MISSILES THEY USUALLY ARE VISIBLE OR DETECTABLE ABOARD THE TRANSPORT VESSELS MR NIKSCH SAYS BUT SMALLER MISSILE COMPONENTS CAN BE MORE EASILY HIDDEN AND THEN ASSEMBLED AFTER THEY ARE DELIVERED NORTH KOREA IS PRESSING ITS SALES EFFORTS BECAUSE WITH ITS ECONOMY IN DISASTROUS CONDITION MILITARY EQUIPMENT IS ITS BEST EXPORT EARNER LIBYA AND SYRIA PAY CASH AND IRAN HAS AGREED TO SUPPLY NORTH KOREA WITH BADLY NEEDED OIL IN 1991 ACCORDING TO MR NIKSCH IRAN SUPPLIED ABOUT 40 OF NORTH KOREA'S TOTAL OIL IMPORTS ISRAELI INITIATIVES MEANWHILE WITH US APPROVAL ISRAEL IS OFFERING NORTH KOREA TECHNICAL ASSISTANCE IF IT ENDS ITS MISSILE SALES TO THE MIDEAST ABOUT SIX MONTHS AGO EITAN BENTSUR DEPUTY DIRECTORGENERAL OF ISRAEL'S FOREIGN MINISTRY SECRETLY VISITED NORTH KOREA THE ISRAELIS PROMISED TECHNICAL ASSISTANCE INCLUDING MACHINERY SUCH AS MINING EQUIPMENT NORTH KOREA INVITED ISRAELI FOREIGN MINISTER SHIMON PERES TO VISIT LAST MONTH MR PERES MET WITH US SECRETARY OF STATE WARREN CHRISTOPHER WHEN BOTH MEN WERE IN VIENNA AND MR CHRISTOPHER URGED MR PERES NOT TO MAKE THE VISIT AS A RESULT THE FOLLOWUP TRIP TO PYONGYANG IN LATE JUNE WAS MADE BY MR BENTSUR BUT ALL THESE EFFORTS MAY COME TOO LATE ACCORDING TO SOME LYSTS IN LATE APRIL SYRIA WITH EXTENSIVE HELP FROM NORTH KOREA AND PERHAPS CHINA BEGAN PRODUCING SCUDC MISSILE AT FACILITIES IN ALEPPO AND HAMA THESE ANALYSTS ALSO SAY THAT LIBYA WITH NORTH KOREAN HELP IS SETTING UP A SCUD PRODUCTION LINE AT A FACILITY NEAR TRIPOLI KNOWN AS THE CENTRAL REPAIR WORKSHOP LIBYA MIGHT ALSO BEGIN PILOT PRODUCTION NEXT YEAR FROM THIS FACILITY OF THE NODONG1 MISSILE WHICH COULD THREATEN SOUTHERN EUROPE FROM FRANCE TO TURKEY AT USNORTH KOREAN TALKS UNDER WAY IN GENEVA THE US IS FOCUSING ON CURTAILING PYONGYANG'S NUCLEAR PROGRAM AND OPENING TWO SUSPECTED NUCLEAR SITES TO INTERNATIONAL INSPECTION BUT WASHINGTON ALSO IS WORRIED ABOUT NORTH KOREA'S MISSILE PROLIFERATION EARLIER THIS YEAR JAMES WOOLSEY WHO HEADS THE CENTRAL INTELLIGENCE AGENCY TOLD CONGRESS THE COMBINATION OF NORTH KOREA'S NUCLEAR AND MISSILE ACTIVITIES IS PROBABLY OUR MOST GRAVE CURRENT CONCERN NORTH KOREA HAS EMERGED DURING RECENT YEARS AS A KEY SUPPLIER FOR STATES SUCH AS IRAN AND SYRIA CUT OFF FROM TRADITIONAL SUPPLIERS IN THE WEST BY STRICTER EXPORT CONTROLS HE SAID 9307190016 930719 A LANGUAGE BARRIER IS ERECTED IN PLACE OF A TRADE BARRIER US NEGOTIATORS AREN'T SURE WHETHER PACT WITH JAPAN IS MEANINGFUL OR SIGNIFICANT BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHAT'S THE VALUE OF A TRADE DEAL A LOT LESS APPARENTLY WHEN IT'S EXPRESSED IN JAPANESE AFTER NEARLY A WEEK OF HAGGLING THE US AND JAPAN AGREED IN ENGLISH AT LEAST THAT JAPAN WILL PURSUE A HIGHLY SIGNIFICANT REDUCTION IN ITS TRADE SURPLUS WITH THE REST OF THE WORLD THE DEAL WAS NEGOTIATED WORD BY WORD BY COMMA SAYS BOWMAN CUTTER THE CHIEF US NEGOTIATOR WITH JAPAN ALL THOSE WORDS WERE IN ENGLISH THE LANGUAGE THE TWO SIDES USED DURING NEGOTIATIONS THEN SOMETHING GOT LOST IN TRANSLATION SPECIFICALLY HIGHLY SIGNIFICANT BECAME A LOT LESS SO IN THE JAPANESE VERSION TOKYO'S NEGOTIATORS USED THE WORDS JUBUN IMINOARU WHICH TRANSLATES TO A SUFFICIENTLY MEANINGFUL REDUCTION IN THE SURPLUS THE NEGOTIATORS DIDN'T SPELL OUT JUST HOW MUCH THE TRADE SURPLUS SHOULD SHRINK IN EITHER LANGUAGE GIVEN THE DIFFERENCES BETWEEN ENGLISH AND JAPANESE TRADE TALK IS ALWAYS TRICKY BUT SKEPTICS SEE THE TRANSLATION AS AN EFFORT TO WATER DOWN THE DEAL THE US THOUGHT IT ACHIEVED WHEN I LOOKED AT THIS I SAID HERE WE GO AGAIN' SAYS CLYDE PRESTOWITZ WHO NEGOTIATED SEMICONDUCTOR DEALS WITH JAPAN DURING THE REAGAN YEARS HE FIGURES THAT JAPAN'S WARRING MINISTRIES SLIPPED IN THE AMBIGUOUS PHRASE SO THEY COULD CLAIM THE DEAL MEANS WHAT THEY SAY IT MEANS OR AS HUMPTY DUMPTY WOULD PUT IT WHEN I USE A WORD IT MEANS JUST WHAT I CHOOSE IT TO MEAN NEITHER MORE NOR LESS MR CUTTER MEANWHILE SAYS HE FIRST LEARNED OF THE DISCREPANCY LAST WEEK AFTER RETURNING DOGTIRED FROM THE NEGOTIATIONS IN TOKYO STAFFERS FROM THE US TRADE REPRESENTATIVE'S OFFICE REVIEWED THE JAPANESE TRANSLATION AND HIGHLIGHTED IN RED INK ANY PHRASE THEY THOUGHT DIDN'T ADEQUATELY REPRESENT THE ENGLISH TERM BUT THEY SOMEHOW MISSED THIS ONE SINCE WHEN DID YOU LEARN TO SPEAK JAPANESE ASKED ONE US NEGOTIATOR A BIT DEFENSIVELY WHEN THE DIFFERENCE BETWEEN THE TWO TEXTS WAS POINTED OUT SEIICHIRO NOBORU ECONOMICS MINISTER AT THE JAPANESE EMBASSY HERE ASSURES THAT THE ENGLISH VERSION IS THE AUTHENTIC TEXT WELL MAYBE A FORMER US TRADE NEGOTIATOR WITH LONG EXPERIENCE IN JAPAN SAYS THAT AFTER THE TOKYO TALKS JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY PREPARED A DOCUMENT IN JAPANESE THAT EXPLAINED WHAT SUFFICIENTLY MEANINGFUL REALLY MEANS THE ANSWER ENOUGH OF A DROP IN THE SURPLUS TO WARD OFF PROTECTIONIST SENTIMENTS ABROAD IN AN ODD WAY HE SAYS JAPAN'S AMBIGUOUS LANGUAGE INVITES WASHINGTON TO AMPLIFY ITS TRADE THREATS IN ORDER TO PROD JAPAN SUFFICIENTLY TO REDUCE ITS TRADE SURPLUS MEANINGFULLY 9307190015 930719 PEPPERAND SALT THAT HAS OPENED UP FOR HOGS WITH THEIR SCENTSITIVE PIG SNOUT BUT FOR DRUGS THEY'VE BEEN PIGGED OUT WITH BUS OR TRUCK 9307190014 930719 WORLD MARKETS NEW FUNDS FUEL TOKYO SHARES LONDON BOURSE EKES OUT GAIN TECHNICAL RALLY LIFTS FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS GAINED BROADLY FRIDAY MOSTLY BECAUSE OF BUYING BY NEWLY FORMED INVESTMENT TRUST FUNDS LONDON SHARES AFTER DRIFTING IN NEGATIVE TERRITORY MANAGED TO EKE OUT A SMALL RISE FRANKFURT PRICES ENDED HIGHER AFTER A TECHNICALLY SPARKED RALLY LATE IN THE SESSION PUSHED THE MARKET OUT OF ITS DOLDRUMS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10680 UP 016 REFLECTING INCREASES IN MARKETS IN EUROPE AND THE ASIA/PACIFIC REGION AND A DROP IN THE AMERICAS PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12462 UP 407 OR 338 WITH ASIATIC OF MALAYSIA POSTING AN 1139 GAIN IN ITS LOCAL CURRENCY SOFTWARE STOCKS TRAILED AT 11062 DOWN 225 OR 199 WITH COGNOS OF CANADA SLIDING 698 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 1891 POINTS THURSDAY ADVANCED 17351 TO 2033153 NEAR THE INTRADAY HIGH OF 2035254 ON MONDAY THE NIKKEI INDEX FELL 5980 POINTS TO CLOSE THE MORNING SESSION AT 2027173 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A MODERATE 330 MILLION SHARES DOWN FROM 3859 MILLION SHARES A DAY EARLIER ADVANCING ISSUES FAR OUTNUMBERED RETREATING ISSUES 707299 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 810 POINTS THURSDAY GAINED 1320 TO 165288 THE MARKET MOOD WAS BRIGHT AHEAD OF THE SUNDAY GENERAL ELECTION FOR JAPANESE PARLIAMENTARY SEATS THOUGH MANY INVESTORS KEPT TO THE SIDELINES FRIDAY THE GROWING CONSENSUS WAS THAT THE NEW GOVERNMENT WILL ACT TO BOOST THE AILING ECONOMY FINANCIAL ISSUES WERE AMONG THE BEST PERFORMERS ON CONTINUED MARKET TALK THAT THEY WILL BE HEAVILY WEIGHTED IN A SOONTOBEANNOUNCED NIKKEI INDEX FOR FUTURES TRANSACTIONS AND ON UNRELENTING SPECULATION ABOUT A COMING JAPANESE INTERESTRATE REDUCTION THE NIKKEI STOCK AVERAGE MARKED AN INTRADAY LOW OF 2010631 AT THE OPENING SHARES WERE LITTLE CHANGED AT MIDDAY THE LATE RALLY CAME WHEN ABOUT 100 BILLION YEN TO 150 BILLION YEN 9229 MILLION TO 138 BILLION IN NEW INVESTMENT TRUST FUNDS KICKED OFF OPERATIONS FRIDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED UP 13 POINTS TO 28330 CLIMBING BACK INTO POSITIVE TERRITORY ONLY IN THE LAST 15 MINUTES OF TRADING THE FT 30STOCK INDEX SLIPPED 27 POINTS TO 22188 VOLUME WAS 6288 MILLION SHARES COMPARED WITH 6111 MILLION SHARES IN THE PREVIOUS SESSION THE LONDON MARKET'S LACKLUSTER PERFORMANCE LAST WEEK WAS BLAMED PARTLY ON THE END OF THE TRADING ACCOUNT PERIOD AND ON INVESTORS' UNCERTAINTY ABOUT BRITAIN'S ECONOMIC RECOVERY DESPITE POSITIVE SIGNS ON THE ECONOMY THE STRENGTH OF THE REBOUND CONTINUED TO BE QUESTIONED AND INVESTORS WERE PREPARING FOR AN ONSLAUGHT OF CORPORATE STOCK RIGHTS ISSUES WHICH COULD REDIRECT INVESTORS' FUNDS ON FRIDAY DRUG STOCKS FELL SHARPLY IN REACTION TO THE PREVIOUS DAY'S WALL STREET SELLOFF IN THAT SECTOR BUT SOME FOOD STOCKS THAT HAD DROPPED DURING THE WEEK RALLIED AS THEY HIT SUPPORT LEVELS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 580 POINTS TO 181346 MAKING ITS GAIN FOR THE WEEK 1605 POINTS THE MARKET WAS QUIET UNTIL THE FINAL 10 MINUTES WHEN PRICES WERE PUSHED UP BECAUSE OF THE FRIDAY EXPIRATION OF OPTIONS AND FUTURES CONTRACTS WHICH OFTEN TRIGGERS LASTMINUTE VOLATILITY AS TRADERS TRY TO MATCH THEIR CONTRACT PRICES WITH UNDERLYING CASH PRICES OF THE DAX STOCKS 22 ADVANCED AND 6 RETREATED PARIS SHARE PRICES CONTINUED THEIR STEADY CLIMB BEFORE STALLING AT A PERCEIVED RESISTANCE LEVEL ON THE MAIN INDEX INDUSTRIAL STOCKS LED THE RALLY MOST INVESTORS' ATTENTION WAS RIVETED ON THE CURRENCY MARKETS WHERE THE FRENCH FRANC HELD FAIRLY STEADY BUT STILL IN DANGEROUS WATERS AGAINST THE GERMAN MARK ELSEWHERE IN EUROPE STOCKS ALSO WERE PRESSURED BY TURMOIL IN FOREIGNEXCHANGE DEALINGS AND PRICES GENERALLY SAGGED AS EUROPEAN CENTRAL BANKS HAD TO JOIN FORCES TO SUPPORT THE BELEAGUERED DANISH KRONE CURRENCY IN FOUR SEPARATE ROUNDS OF CONCERTED INTERVENTION EVEN SO AMSTERDAM SHARES ROSE SUPPORTED BY TRANSACTIONS RELATED TO EXPIRATION OF JULY OPTIONS CONTRACTS AND A SLIGHT REDUCTION IN THE DUTCH CENTRAL BANK'S KEY MONEY MARKET INTERVENTION RATE TO 66 THE LOWEST LEVEL IN ABOUT FOUR YEARS BUT IN MADRID THE GROWING TURMOIL IN THE EUROPEAN EXCHANGE RATE MECHANISM WEIGHED ON STOCK PRICES WHICH ENDED SLIGHTLY LOWER IN MILAN PRICES FIRMED IN VOLATILE TRADING AS THE BOURSE'S COMPUTER TRADING SYSTEM WAS EXPANDED SHARES THAT TRADE ELECTRONICALLY WERE INCREASED TO 80 FROM 39 OR 70 OF MARKET CAPITALIZATION INCLUDING ALL BLUECHIP COMPANIES LISTED THE REMAINING 268 SECONDTIER ISSUES WILL CONTINUE TO BE TRADED IN THE TRADITIONAL OPENOUTCRY SYSTEM UNTIL THE END OF THE YEAR STOCKHOLM SHARES ROSE FOR THE NINTH CONSECUTIVE SESSION AS GAINS FOR SOME BLUE CHIPS AND FORESTSECTOR SHARES OFFSET A SLIDE IN THE TELECOMMUNICATIONS ARENA IN SYDNEY SHARES' WEEKLONG STRENGTH FINALLY WANED AND PRICES SLIPPED SINGAPORE EQUITIES REBOUNDED FROM UNINSPIRING EARLY DEALINGS TO CLOSE HIGHER LED BY SHIPYARD ISSUES WHICH HAD FACED HEAVY SELLING PRESSURE LAST WEEK HONG KONG STOCKS IN A CORRECTION ON A LACK OF MARKETMOVING NEWS CLOSED AT THEIR LOWEST LEVEL SINCE MAY 11 AMID WEAK TURNOVER THOUGH ACTIVITY WAS LIVELY IN SOCALLED REDCHIP STOCKS THOSE CLOSELY IDENTIFIED WITH CHINA IN SEOUL WITHOUT ANY FACTORS TO STIMULATE THE MARKET STOCKS SLIPPED FOR THE THIRD DAY IN A ROW 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 9307190013 930719 BUSINESS BRIEF EPA SUES SHERWINWILLIAMS PATTERN OF POLLUTION AT PAINT FACTORY IS ALLEGED CHICAGO PLAYING CATCH UP THE ENVIRONMENTAL PROTECTION AGENCY SUED SHERWINWILLIAMS CO ALLEGING A LONG PATTERN OF POLLUTION AT A PAINT FACTORY WHERE THE COMPANY'S FAILURE TO SEEK A HAZARDOUSWASTE PERMIT TOOK YEARS TO ATTRACT THE ATTENTION OF THE AGENCY THIS DID NOT GET PRIORITY ATTENTION SAID GAIL C GINSBURG THE EPA'S REGIONAL COUNSEL OF THE PAINT MANUFACTURER'S DECISION IN AUGUST 1985 NOT TO SEEK A PERMIT THE JUSTICE DEPARTMENT AND THE EPA FILED SUIT FRIDAY IN FEDERAL COURT HERE ALLEGING THAT THE PLANT ON CHICAGO'S INDUSTRIAL SOUTH SIDE FLUSHED DANGEROUS CHEMICALS INTO THE SEWERS AT TIMES IN QUANITIES SUFFICIENT TO CAUSE A FIRE OR EXPLOSION AND DIDN'T PROPERLY HANDLE HAZARDOUS WASTES THE AGENCIES ARE SEEKING AN INJUNCTION TO STOP THE ALLEGED VIOLATIONS PLAN TO SEEK PENALTIES OF MILLIONS OF DOLLARS AND WANT THE COMPANY TO CLEAN UP ANY CONTAMINATION ON THE SITE THE SUIT IS PART OF AN EFFORT TO CORRECT A BASIC FLAW IN THE EPA'S REGULATION OF INDUSTRY WHICH OPERATES ON A SORT OF HONOR SYSTEM THE EPA MOSTLY KNOWS ABOUT AIR WATER AND WASTEHANDLING VIOLATIONS THROUGH DISCLOSURES MADE BY COMPANIES WITH PERMITS ISSUED BY THE EPA OR STATE REGULATORS THE VAST NUMBER OF FACTORIES WITHOUT PERMITS TELL REGULATORS MUCH LESS BEGINNING IN FEBRUARY 1992 UNDER THE BUSH ADMINISTRATION THE EPA BEGAN GOING AFTER POLLUTERS THAT AREN'T AS EASILY DETECTED IN WHAT THE AGENCY CALLS ITS ILLEGALOPERATORS INITIATIVE THE SHERWINWILLIAMS LAWSUIT FOLLOWS A TWOYEAR INVESTIGATION BY THE EPA THE AGENCY WOULDN'T SAY WHAT SPECIFICALLY CAUSED IT TO FOCUS ON THIS PLANT THOUGH IT HAS IDENTIFIED THE HEAVYINDUSTRIAL AREA FROM THE SOUTH SIDE TO NORTHWEST INDIANA FOR CLOSER SCRUTINY EPA ADMINISTRATOR CAROL M BROWNER SAID THE AGENCY WOULD BE INVESTIGATING MORE SITES IN THE AREA SHERWINWILLIAMS BASED IN CLEVELAND SAID THE EPA APPROACHED IT ABOUT A MONTH AGO WITH THE ALLEGATIONS AND WANTED THE COMPANY TO SETTLE THE CHARGES BUT THE COMPANY SAID THE AGENCY REFUSED TO OFFER DATES TIMES AND OTHER SPECIFIC INFORMATION ABOUT THE ALLEGED VIOLATIONS HOW DO I KNOW THERE WASN'T A LID ON THE DRUM SAID CONWAY G IVY VICE PRESIDENT OF SHERWINWILLIAMS OF THE CHARGES THAT INCLUDED FAILURE TO KEEP CONTAINERS SEALED HE SAID THE COMPANY WOULD PROBABLY CONTEST THE CHARGES HAD THE COMPANY SOUGHT A SOCALLED PART B PERMIT IN 1985 AS THE EPA NOW SAYS IT SHOULD HAVE REGULATION OF THE PLANT IN THE YEARS SINCE WOULD HAVE BEEN TOUGHER JOSEPH M BOYLE AN EPA ENFORCEMENT OFFICIAL IN CHICAGO SAID THAT IT'S A FAIR ASSUMPTION THAT SHERWINWILLIAMS'S WITHDRAWAL OF A PERMIT APPLICATION IN 1985 WAS MADE BECAUSE THE COMPANY THOUGHT IT DIDN'T NEED A PERMIT THE AGENCY DIDN'T CHALLENGE THE DECISION TO WITHDRAW 9307190012 930719 INTERNATIONAL RUSSIA TO JOIN PACT LIMITING SPREAD OF BALLISTIC MISSILES BY CARLA ANNE ROBBINS AND BARBARA ROSEWICZ STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SETTLING A POTENTIALLY BITTER DISPUTE RUSSIA PLEDGED TO JOIN AN INTERNATIONAL ACCORD LIMITING THE SPREAD OF BALLISTIC MISSILES AND THE US AGREED IT COULD GO AHEAD WITH AT LEAST PART OF A LONGPLANNED SALE OF ROCKET ENGINES TO INDIA THE RESOLUTION CLEARS THE WAY FOR INCREASED RUSSIAN PARTICIPATION IN A VARIETY OF LUCRATIVE COMMERCIAL SPACE LAUNCH AND ENERGY PROGRAMS ON SATURDAY THE US AND RUSSIA SIGNED A PACT TO STUDY THE POSSIBILITY OF MORE JOINT SPACE EXPLORATION AS PART OF THE SETTLEMENT REACHED LATE LAST WEEK RUSSIA AGREED THAT IT WOULDN'T SELL ADDITIONAL TECHNOLOGY TO INDIA THAT COULD ENABLE IT TO MANUFACTURE ITS OWN BALLISTIC MISSILE ENGINES US OFFICIALS ACKNOWLEDGED HOWEVER THAT AT LEAST SOME OF THE SENSITIVE TECHNOLOGY HAS ALREADY BEEN TRANSFERRED IT IS NOT A COMPLETELY SATISFACTORY SOLUTION SAID ONE SENIOR OFFICIAL BUT AT LEAST WE HAVE AN AGREEMENT THAT THEY WON'T DO IT AGAIN THE DISPUTE OVER THE SALES HAS SORELY STRAINED RELATIONS BETWEEN THE TWO COUNTRIES IN RECENT MONTHS AND IT WAS A KEY TOPIC WHEN PRESIDENT CLINTON MET WITH RUSSIAN PRESIDENT BORIS YELTSIN IN TOKYO IN EARLY JULY THE RUSSIANS HAVE ACCUSED THE US OF DELIBERATELY TRYING TO SQUEEZE THEM OUT OF THE INTERNATIONAL HIGHTECHNOLOGY AND WEAPONS MARKETS THE US DENIES THE CHARGE AND IS OFFERING THE RUSSIANS ACCESS TO THE LUCRATIVE US COMMERCIAL SPACE AND TECHNOLOGY MARKETS IN EXCHANGE FOR PROLIFERATION CONTROLS A TENTATIVE DEAL STRUCK IN MAY WOULD ALLOW RUSSIA TO BID COMPETITIVELY ON LAUNCH SERVICES FOR AS MANY AS EIGHT USMADE SATELLITES THROUGH THE END OF 2000 THE QUOTA ARRANGEMENT IS TROUBLING TO SOME US AND EUROPEAN ROCKET MAKERS WHO FEAR THE COMPETITION BUT IT WOULD UNDOUBTEDLY PLEASE LOCKHEED CORP WHICH HAS JOINED WITH TWO RUSSIAN AEROSPACE COMPANIES TO MARKET RUSSIANMADE PROTON ROCKETS US SPACE EXPERTS ALSO BELIEVE RUSSIAN PARTICIPATION COULD HELP HOLD DOWN COSTS ON THE EMBATTLED US SPACE STATION THE MULTIBILLIONDOLLAR PROJECT IS BEING REDESIGNED TO SAVE MONEY UNDER MR CLINTON'S ORDERS AMERICAN DESIGNERS HAVE SUGGESTED RUSSIAN SOYUZ SPACECRAFT COULD BE USED AS EMERGENCY ESCAPE VEHICLES FOR ASTRONAUTS LIVING ON THE ORBITING LABORATORY SO FAR THE CLINTON ADMINISTRATION HAS BEEN VAGUE ABOUT HOW EXTENSIVE A ROLE IN THE PROJECT IT PLANS TO OFFER THE RUSSIANS THE WHITE HOUSE HAS YET TO MAKE A CRUCIAL DECISION ON WHETHER TO LAUNCH THE SPACE STATION INTO AN ORBIT THAT WOULD GIVE THE RUSSIANS ACCESS 9307190011 930719 GLOBAL VIEW DON'T WRITE OFF DEFLATION QUITE YET BY GEORGE MELLOAN THE US AND GERMANY HAVE FOLLOWED OPPOSITE MONETARY POLICY PATHS OVER THE LAST TWO YEARS A SHARP DIVERGENCE THAT HELPED CRASH EUROPE'S MONETARY SYSTEM AND HOPES FOR A SINGLE CURRENCY IN LIGHT OF THAT IT'S INTERESTING TO LOOK AT WHERE PRICES IN THE TWO COUNTRIES STAND IN THIS SUMMER OF 1993 IN BOTH THE INFLATIONARY FEARS OF THREE MONTHS AGO HAVE DIMINISHED SIGNIFICANTLY PRESENT PROSPECTS ARE THAT THE US WILL KEEP SHORTTERM RATES LOW AND GERMANY WILL FURTHER TRIM THEM WITH THE BUNDESBANK ADDING NEW CUTS TO THE HALFPOINT REDUCTION MADE IN ITS DISCOUNT RATE JULY 1 IT IS OF FURTHER INTEREST THAT THIS PATTERN OF EASED INFLATIONARY PRESSURES IS EVIDENT THROUGHOUT MUCH OF THE DEVELOPED WORLD THE UNITED KINGDOM DESPITE A SHARP DEVALUATION OF THE POUND LAST YEAR REPORTED A DECLINE IN RETAIL PRICES LAST MONTH THAT BROUGHT ITS YEARTOYEAR INFLATION RATE DOWN TO 12 THE LOWEST SINCE 1964 THIS DISINFLATIONARY PATTERN IS BEING REPEATED IN FRANCE AND HOLLAND AND EVEN IN SOME OF THE EUROPEAN STATES WITH CHRONICALLY HIGH LEVELS OF INFLATION THESE EVENTS SUGGEST TWO POSTULATES ONE IS THAT DEFLATIONARY FORCES STILL ARE QUITE STRONG IN THE DEVELOPED WORLD THE OTHER IS THAT MONETARY POLICY IS NOT AS POWERFUL A TOOL FOR INFLUENCING THESE ELEMENTAL FORCES AS IS COMMONLY THOUGHT WHY WOULD TWO OTHERWISE DIVERGENT MONETARY POLICIES REACH THE SAME END POINT THIS MAY SOUND LIKE GROSS HERESY TO THE THOUSANDS OF MONETARIST ECONOMISTS WHO MAKE THEIR LIVING CHARTING MONEY SUPPLIES AND READING THE TEA LEAVES ON WHAT CENTRAL BANKS ARE UP TO BUT IT DEPENDS ON THE DEPTH OF BELIEF IN THE POWER OF MONETARY POLICY MONETARIST GODFATHER MILTON FRIEDMAN HAS NEVER BEEN A FAN OF MONETARY FINETUNING ARGUING INSTEAD FOR STEADYSTATE POLICIES FEW CENTRAL BANKERS THINK THEY ARE SMART ENOUGH TO CONTROL THE WINDS AND TIDES OF THE WORLD ECONOMY JUST MAINTAIN PRICE STABILITY TO THE EXTENT POSSIBLE AND YOU HAVE DONE YOUR JOB THAT'S THE MESSAGE OF THE WISEST MONETARISTS IN GERMANY WHICH HAS TWICE THIS CENTURY BEEN THE VICTIM OF RUINOUS INFLATIONS THIS IS THE LAW THIS MESSAGE IS NOT PARTICULARLY POPULAR WITH POLITICIANS BECAUSE CENTRAL BANKS ARE A CONVENIENT SCAPEGOAT WHEN ECONOMIC POLICY GOES WRONG POLITICIANS ALSO ALWAYS WANT LOWER INTEREST RATES TO ENABLE THEM TO FINANCE NATIONAL DEBTS WITH A SMALLER CHUNK OUT OF THEIR GOVERNMENT BUDGETS YET TODAY'S INFLATION NUMBERS DO PRESENT SOME PUZZLES IN THE US WHERE THE FEDERAL RESERVE HAS BEEN HOLDING SHORTTERM RATES CLOSE TO 3 FOR NEARLY 18 MONTHS THE CONSUMER PRICE INDEX CPI WAS FLASHING AN INFLATION WARNING IN THE FIRST QUARTER BUT THE DANGER THEN SUBSIDED PRICES HARDLY BUDGED IN MAY AND JUNE IN WHAT THE LABOR DEPARTMENT CALLED THE BEST BACKTOBACK PERFORMANCE IN TWO YEARS IN THE SECOND QUARTER THE CPI WAS RISING AT AN ANNUAL RATE OF ONLY 22 COMPARED WITH 4 IN THE FIRST QUARTER PRODUCER PRICES AND THE DOW JONES COMMODITY FUTURES INDEX HAVE BEEN FLAT RAISING HOPES THAT THE MODERATE CPI GROWTH WILL CONTINUE INTO THE FALL IN GERMANY WHERE A YEAR AGO THE BUNDESBANK WAS HOLDING SHORTTERM INTEREST A FULL SIX PERCENTAGE POINTS ABOVE THE FED RATE SOMETHING QUITE SIMILAR HAS BEEN HAPPENING BUNDESBANK PRESIDENT HELMUT SCHLESINGER DISCLOSED EARLY THIS MONTH THAT ON AN ANNUALIZED AND SEASONALLY ADJUSTED BASIS WESTERN GERMAN INFLATION HAS ACCELERATED AT ONLY 27 OVER THE LAST THREE MONTHS THAT'S NOT MUCH DIFFERENT FROM THE US SECONDQUARTER RATE ON A YEARTOYEAR BASIS WEST GERMANY'S CPI IN JUNE AT 42 WAS ABOUT ONE POINT HIGHER THAN THAT OF THE US BUT THE WEST GERMAN RATE REFLECTS A ONE POINT BOOST IN THE COUNTRY'S VALUE ADDED TAX IN JANUARY PRODUCER PRICES IN WEST GERMANY LIKE THOSE IN THE US ARE FLAT THE BUNDESBANK CUT ITS DISCOUNT RATE A HALF POINT TO 675 ON JULY 1 DROPPING IT TO LESS THAN FOUR POINTS ABOVE THE FED RATE MOST ANALYSTS EXPECT STILL FURTHER CONVERGENCE IF GERMANY'S INFLATION FEARS CONTINUE TO DIMINISH GERMANY IS AFFLICTED WITH A SPECIAL SET OF CIRCUMSTANCES IT STILL IS MAKING HUGE INCOME TRANSFERS FROM WEST TO EAST TO TRY TO RAISE THE FORMER EAST GERMANY'S ECONOMY TO A PAR WITH THE WEST EASTERN GERMANY ALSO HAS A HIGH RATE OF INFLATION NOT REFLECTED IN THE NUMBERS ABOVE THE BUNDESBANK HOLDS RATES RELATIVELY HIGH TO ATTRACT CAPITAL TO FINANCE THE INCOME TRANSFERS AND KEEP INFLATION IN CHECK SOME MIGHT ARGUE THAT THE US AND GERMANY ARE MERELY CROSSING EACH OTHER'S PATHS ONE GOING UP AND THE OTHER DOWN INFLATION IN THE US MAY BE DOWN BECAUSE IT IS ENJOYING A WEAK ECONOMIC RECOVERY NOT STRONG ENOUGH TO GENERATE PRICE RISES BUT POWERFUL ENOUGH TO YIELD SOME PRODUCTIVITY GAINS GERMANY BY CONTRAST STILL IS SINKING WITH A DEEP RECESSION MODERATING THE INFLATIONARY PRESSURES THAT ITS HUGE EAST GERMAN WELFARE PROGRAM IS GENERATING THERE ALSO IS THE POSSIBILITY HOWEVER THAT THE ENTIRE INDUSTRIAL WORLD IS SUBJECT TO STRONGER DEFLATIONARY PRESSURES THAN NORMALLY OCCUR DURING BUSINESS CYCLES JAPAN THE US AND EUROPE ALL HAVE FELT THE IMPACT OF REAL ASSET SLUMPS ON BANK INDUSTRIAL AND HOUSEHOLD BALANCE SHEETS JAPAN'S REAL ESTATE BUBBLE COLLAPSE WAS THE MOST DRAMATIC BUT EUROPE AND THE US HAVE HAD ASSET DEFLATION TOO WHEN BALANCE SHEET MANAGERS WHETHER THEY BE HOUSEWIVES OR CORPORATE TREASURERS LOOK AT THE SHRUNKEN VALUE OF ASSETS AND THE DEBTS PILED UP AGAINST THEM THEY ARE NOT ENCOURAGED TO SPEND DEMAND AND THUS INFLATIONARY PRESSURES ARE DIMINISHED NONE OF THIS SHOULD SUGGEST THAT THE INDUSTRIAL WORLD HAS ENTERED SOME KIND OF PRICE STABILITY VALHALLA THE US RECOVERY SUGGESTS THAT BALANCE SHEETS ARE GRADUALLY COMING BACK INTO BETTER BALANCE RETAIL DEMAND AND INDUSTRIAL PRODUCTION ARE PICKING UP IF THIS CONTINUES OF COURSE INFLATIONARY PRESSURES MAY RETURN GOVERNMENTS HAVE HUGE DEFICITS TO FINANCE WHICH ALWAYS APPLIES PRESSURE ON CENTRAL BANKS IF MONETARY AGGREGATES ARE ANY GUIDE THE FED HAS BEEN QUITE GENEROUS WITH MONEY CREATION THIS YEAR EXCEPT THAT INSTEAD OF FEEDING CONSUMER DEMAND THE MONEY HAS PUMPED UP THE SECURITIES MARKETS WHAT EFFECT A NEW SPURT IN DEMAND WILL HAVE ON THOSE MARKETS IS A VERY GOOD SUBJECT FOR SPECULATION AS TO THE INFLATION OUTLOOK GENERALLY FORMER FED CHAIRMAN PAUL VOLCKER HAS A POINT OF VIEW HE TOLD FORBES A FEW WEEKS AGO THAT BUSINESSMEN MAY HAVE TO ADJUST THEIR THINKING TO A LOWINFLATION ERA YOU CAN'T EXPECT INFLATIONARY RATES OF RETURN IN LOW INFLATIONARY TIMES LONG DEFLATIONS HAVE HAPPENED BEFORE ON THE OTHER HAND THERE WAS THAT DRAMATIC RISE IN THE PRICE OF GOLD A FEW WEEKS AGO WHAT ON EARTH COULD THAT BE ALL ABOUT 9307190010 930719 INDIAN TRIBES WIN GAMBLING BID IN CALIFORNIA BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE UPHELD A BID BY INDIAN TRIBES TO OFFER ELECTRONIC GAMBLING DEVICES AND CERTAIN OTHER GAMES IN CALIFORNIA GRANTING THE TRIBES A DECISIVE VICTORY IN THE DEVELOPMENT OF LEGALIZED GAMBLING ON NATIVE AMERICAN LANDS US DISTRICT JUDGE GARLAND E BURRELL JR ORDERED THE STATE OF CALIFORNIA TO NEGOTIATE WITH 17 TRIBES OVER THE USE OF ELECTRONIC KENO VIDEO LOTTO AND SIMILAR GAMES USED BY THE STATE LOTTERY THE PARTIES ALSO WILL NEGOTIATE THE OFFERING OF CARD GAMES NOT EXPRESSLY PROSCRIBED BY STATE LAW IN A 34PAGE DECISION JUDGE BURRELL RULED THAT CALIFORNIA CAN BAR CERTAIN BANKED AND PERCENTAGE CARD GAMES SOUGHT BY THE TRIBES SUCH AS BLACKJACK BANKED CARD GAMES ARE THOSE IN WHICH THE HOUSE PARTICIPATES AS A PLAYER AND ACTS AS A BANK PERCENTAGE GAMES ARE THOSE IN WHICH THE HOUSE HAS NO INTEREST IN THE OUTCOME AND TAKES A PERCENTAGE OF THE AMOUNTS WAGERED OR WON THE STATE ALREADY PERMITS THE PLAYING OF CARD GAMES AS LONG AS THE OPERATORS DON'T PARTICIPATE AS PLAYERS AND HAVE NO INTEREST IN THE OUTCOME OF GAMES LOCAL CARD CLUBS RENT SEATS TO PLAYERS AND MAKE ADDITIONAL MONEY FROM THE SALE OF FOOD AND OTHER SERVICES THE CASE HAS BEEN CLOSELY WATCHED BY STATE OFFICIALS AND TRIBAL REPRESENTATIVES NATIONWIDE AS INDIAN CASINOS BECOME ONE OF THE FASTESTGROWING OUTLETS FOR LEGAL GAMBLING UNDER FEDERAL LAW TRIBES MAY OFFER FOR PROFIT ANY GAMES ALLOWED IN THEIR STATES INCLUDING GAMES OFFERED AT LAS VEGAS NIGHTS FOR CHARITABLE FUNDRAISING PURPOSES THE STATES AND THE TRIBE SIGN COMPACTS SPELLING OUT THE TYPE AND NUMBER OF GAMES TO BE ALLOWED GAMBLING REVENUES AND PROFITS TRANSLATE DIRECTLY INTO MORE JOBS DECENT HEALTH CARE AND CHILD CARE BETTER EDUCATIONAL OPPORTUNITIES ADEQUATE HOUSING AND SATISFACTORY SEWER AND WATER SYSTEMS FOR TRIBAL MEMBERS SAID PAULA LORENZO OF THE RUMSEY BAND OF WINTUN INDIANS THE LEAD TRIBAL PLAINTIFF IN THE CASE DAVE PUGLIA A SPOKESMAN FOR STATE ATTORNEY GENERAL DAN LUNGREN SAID THE CASE WOULD BE APPEALED BUT DECLINED TO DISCUSS FUTURE STRATEGY UNTIL AFTER STATE OFFICIALS HAD STUDIED THE RULING THE POTENTIAL EFFECT OF THE RULING ON NEVADA'S CASINO BUSINESS IS UNCLEAR AS THE TRIBES AND THE STATE HAVE YET TO DETERMINE THE NUMBER AND TYPES OF GAMES EACH TRIBE WILL BE ALLOWED CALIFORNIANS ACCOUNT FOR ABOUT A THIRD OF THE CUSTOMER BASE OF LAS VEGAS CASINOS 9307190009 930719 TECHNOLOGY TELECOMMUNICATIONS REPORT BY MARY LU CARNEVALE TRADITIONAL BROADCASTERS HOPING TO TAKE ADVANTAGE OF THEIR ACCESS TO ALL HOUSEHOLDS HAVE BEEN STUDYING WAYS TO TRANSMIT DATA ON ORDINARY ANALOG TV SIGNALS SYSTEMS HAVE BEEN AROUND FOR YEARS THAT BROADCAST DATA BY USING THE BRIEF INTERVAL BETWEEN TV VIDEO FRAMES THEY HAVE BEEN USED EXTENSIVELY IN THE UK TO DISPLAY TEXT ON TV INCLUDING WAGERING DATA FROM OFFSITE BETTING PARLORS A NEW TECHNOLOGY KNOWN AS TVT1 DEVELOPED BY WAVEPHORE TEMPE ARIZ COULD POPULARIZE BROADCAST DATA IN THE US TVT1 LETS BROADCASTERS TRANSMIT 15 MEGABITS A SECOND OF DIGITAL DATA THAT'S ENOUGH CAPACITY TO CARRY COMPRESSED VIDEO IMAGES ALONG WITH THE REGULAR TV SIGNAL TV SETS LINKED TO A SPECIAL DECODER PICK UP THE DATA STREAM AND DISPLAY IT THE DECODER LETS BROADCASTERS TARGET SPECIFIC HOUSEHOLDS WITH DATA ADVANCED TECHNIQUES FOR BROADCASTING DATA COULD LET STATION OWNERS ESTABLISH WHOLE NEW BUSINESSES OR SEGMENT THEIR AUDIENCES FOR ADVERTISERS A FAVORITE WAVEPHORE EXAMPLE WHILE MOST OF THE AUDIENCE MIGHT SEE AN AD FOR CHEVROLET UPSCALE HOUSEHOLDS WOULD GET A PITCH FROM CADILLAC OTHER APPLICATIONS INCLUDE EXPANDING SPORTS COVERAGE BY GIVING VIEWERS MORE STATISTICS THAN THEY EVER DREAMED POSSIBLE PIPING IN LANGUAGE TRANSLATIONS OR CDQUALITY MUSIC WITH TV PROGRAMS OR DOWNLOADING AN ENTIRE NEWSPAPER DIRECTLY TO A SUBSCRIBER'S PC THE SYSTEM WHICH COULD BE UNDERMINED BY HIGHDEFINITION TV HASN'T BEEN TESTMARKETED YET TEAMS OF COMMUNICATIONS COMPANIES HAVE DEMONSTRATED HOW TO BUILD THE INFORMATION SUPERHIGHWAY UP TO THE BATTLEFIELD USING WIRELESS TECHNOLOGIES AND EXISTING PHONE NETWORKS THE COMPANIES LINKED SPECIALISTS AT HOSPITALS IN WASHINGTON AND VIRGINIA WITH MEDICS AT A DEFENSE DEPARTMENT EXERCISE AT FORT GORDON IN AUGUSTA GA CAMERATOTING MEDICS AT THE BATTLE SHIPPED VIDEO PICTURES OF THE WOUNDED TO DOCTORS AT WALTER REED ARMY MEDICAL CENTER IN WASHINGTON AND AT THE UNIVERSITY OF VIRGINIA MEDICAL HOSPITAL IN CHARLOTTESVILLE USING SPECIAL WORKSTATIONS THE DOCTORS EXAMINED PATIENTS AND CONSULTED WITH MEDICS AT A FIELD HOSPITAL THE WORKSTATIONS ALSO WERE CONNECTED BY HIGHSPEED DATA LINES TO PATIENT FILES AND DIAGNOSTIC AIDS IT WAS THE FIRST PUBLIC DEMONSTRATION OF THE MILITARY'S GLOBAL GRID PLAN WHICH CALLS FOR USING COMMERCIAL TECHNOLOGIES AS THE BACKBONE FOR MILITARY COMMUNICATIONS THE TEST COORDINATED BY INTERDIGITAL COMMUNICATIONS WHICH PROVIDED DIGITAL WIRELESS SERVICES USED SPRINT'S ASYNCHRONOUS TRANSFER MODE SERVICE AN ADVANCED TECHNOLOGY THAT SPEEDS DIGITAL DATA ALONG THE TELECOMMUNICATIONS NETWORK AT SPEEDS AS MUCH AS 30 TIMES FASTER THAN PHONECOMPANY PRIVATELINE SERVICE IN ADDITION BELL ATLANTIC AND BELLSOUTH PROVIDED LOCAL PHONE CONNECTIONS SCIENCE APPLICATIONS INTERNATIONAL PROVIDED ADVANCED COMPUTERS AND CAMERAS FOSTERMILLER CONTRIBUTED A ROBOTICALLY ENHANCED SURGICAL TEAM AND GDE SYSTEMS PROVIDED DATAPROCESSING AND THREEDIMENSIONAL DISPLAY TECHNOLOGY FOR THE LONGDISTANCE CONSULTATIONS THE NEXT STEP BEYOND VOICEMAIL SYSTEMS MAY BE A VIRTUAL RECEPTIONIST BELLCORE THE RESEARCH ARM OF THE REGIONAL BELL COMPANIES IS WORKING ON A SYSTEM THAT ANSWERS CALLS REROUTES THEM TO OTHER LOCALES TAKES MESSAGES AND EVEN FIGURES OUT WHEN TO INTERRUPT A BUSINESS MEETING DAVID TUROCK THE INVENTOR OF THE ELECTRONIC RECEPTIONIST SYSTEM SAYS MOBILE BUSINESSPEOPLE NEED A SYSTEM THAT CAN TRACK THEM DOWN IN THE OFFICE AT HOME IN THEIR CAR OR CRISSCROSSING THE COUNTRY WHILE OTHER SYSTEMS CAN FORWARD CALLS SAY FROM AN OFFICE PHONE TO A CAR PHONE OR A PAGER THE RECEPTIONIST SCREENS CALLS AND GIVES SHORT MESSAGES TO DO THAT A USER MUST GIVE THE SYSTEM INSTRUCTIONS ON HOW TO HANDLE ALL KINDS OF CALLS BY TAPPING CODES INTO A PUSHBUTTON PHONE THE DATA ARE STORED USING NEW SOFTWARE KNOWN AS MOBILITY SOFTWARE WHICH ALSO LINKS UP TO THE PHONE NETWORK AT THE LEAST THE RECEPTIONIST IS CORDIAL IT ANSWERS THE PHONE WITH A SHORT GREETING AND RECORDS THE CALLER'S NAME AND THE PURPOSE OF THE CALL IT THEN OFFERS TO FIND THE CALLED PARTY WHILE THE CALLER IS PUT ON HOLD THE SYSTEM COMBS THE DATABASE FOR INSTRUCTIONS ON FORWARDING CALLS AND DIALS THE PROPER NUMBER ONCE THE CALLED PARTY IS REACHED GENERALLY WITHIN 10 SECONDS OR SO THE RECEPTIONIST DELIVERS THE SHORT MESSAGE AND LETS THE RECIPIENT DECIDE WHETHER TO ACCEPT IT IF IT ISN'T ACCEPTED THE CALLER CAN BE POLITELY DISPATCHED TO VOICE MAIL WHERE A LONGER MESSAGE CAN BE LEFT THE SYSTEM ALSO CAN SCREEN CALLS BASED ON THE CALLER'S PHONE NUMBER DELIVERING THOSE FROM CERTAIN PEOPLE AND DIRECTING THE REST TO VOICE MAIL BELLCORE'S EARLY TESTING SHOWS THE SYSTEM IS AN EFFECTIVE BLOODHOUND IT CONNECTED ABOUT THE SAME NUMBER OF CALLS TO EMPLOYEES AWAY FROM THEIR DESKS AS TO THOSE AT THEIR DESKS A FEW DRAWBACKS SOME USERS SAY THEY MUST FREQUENTLY UPDATE THE SYSTEM ESPECIALLY IF THEY DON'T WANT TO BE IN TOUCH ALL THE TIME THE RECEPTIONIST ALSO CAN CUT OFF FIRSTTIME USERS WHO TEND TO BE LONGWINDED PANAMSAT WHICH LOFTED THE FIRST PRIVATE INTERNATIONAL SATELLITE IN 1988 HAS INITIATED COMPRESSED DIGITAL VIDEO SERVICE PACKING SIX TV SIGNALS INTO AN ONBOARD TRANSPONDER USED BEFORE FOR ONE ANALOG SIGNAL AMERICAN TELEPHONE & TELEGRAPH HAS INTRODUCED PASSAGEWAY SOLUTION A SOFTWARE AND HARDWARE SYSTEM THAT LETS USERS PROGRAM AT&T MERLIN LEGEND PHONES FROM THEIR PCS AMONG OTHER THINGS USERS CAN RECORD CALLS STORE NAMES AND NUMBERS AND AUTOMATICALLY DIAL CALLS FROM PCS AT&T SEEKS SOFTWARE VENDORS TO BUILD PASSAGEWAY FEATURES INTO THEIR PROGRAMS 9307190008 930719 BUSINESS BRIEF UST CORP BANKING COMPANY HAS LOSS FOR QUARTER OF 249 MILLION UST CORP TAKING A 427 MILLION PROVISION FOR LOAN LOSSES REPORTED A SECONDQUARTER LOSS OF 249 MILLION OR 176 A SHARE IN THE YEARAGO SECOND QUARTER THE BANK HOLDING COMPANY HAD NET INCOME OF 519000 OR FOUR CENTS A SHARE AFTER A 57 MILLION LOANLOSS PROVISION NONPERFORMING ASSETS AT THE QUARTER'S END DECLINED 25 TO 1033 FROM 1375 MILLION LAST YEAR TOTAL ASSETS AT QUARTER'S END STOOD AT 2 BILLION DOWN FROM 23 BILLION LAST YEAR THE COMPANY SAID IN BOSTON THAT IT EXPECTS ADDITIONAL CHARGEOFFS AND PROVISIONS WILL BE NECESSARY OVER THE REMAINING TWO QUARTERS OF THE YEAR BUT THESE SECONDQUARTER STEPS SET THE STAGE FOR PROFITABLE OPERATIONS A SPOKESMAN SAID THE ADDITIONAL PROVISIONS WON'T BE OF THE MAGNITUDE OF THE ONE TAKEN IN THE LATEST QUARTER IN THE LATEST SIX MONTHS THE COMPANY REPORTED A LOSS OF 237 MILLION OR 168 A SHARE COMPARED WITH YEARAGO EARNINGS OF 1 MILLION OR SEVEN CENTS A SHARE 9307190007 930719 TECHNOLOGY FUJITSU WAIVES RIGHT TO STUDY IBM SOFTWARE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FUJITSU LTD IN A SIGN OF ITS WEAKENED FINANCIAL CONDITION AND THE TROUBLED STATE OF THE MAINFRAME COMPUTER BUSINESS WAIVED ITS RIGHT TO STUDY NEXTGENERATION MAINFRAME SOFTWARE DEVELOPED BY INTERNATIONAL BUSINESS MACHINES CORP THE DECISION RELEASED BY THE AMERICAN ARBITRATION ASSOCIATION IN NEW YORK SHOULD SAVE FUJITSU TENS OF MILLIONS OF DOLLARS AT A TIME WHEN THE COMPUTER MAKER IS CUTTING COSTS TO STEM A RECENT FLOW OF RED INK THE COMPANY WHICH GREW TO BE THE WORLD'S SECONDLARGEST COMPUTER MAKER ON THE STRENGTH OF ITS IBMCOMPATIBLE MAINFRAMES LAST WEEK ANNOUNCED A PLAN TO TRIM ITS LABOR FORCE 11 BY ATTRITION OVER THE NEXT TWO YEARS FOR THE FISCAL YEAR THAT ENDED MARCH 31 FUJITSU REPORTED A CONSOLIDATED PRETAX LOSS OF 161 BILLION YEN 1491 MILLION FUJITSU'S DECISION WILL MAKE IT HARDER FOR THE COMPANY TO DEVELOP FUTURE IBMCOMPATIBLE MAINFRAMES IN TURN HOWEVER IT MAY ALSO ACCELERATE THE COMPANY'S STRATEGIC SHIFT TOWARD SMALLER COMPUTERS AWAY FROM THE SHRINKING MAINFRAME MARKET THAT STILL MAKES UP THE CORE OF FUJITSU'S BUSINESS LAST MONTH THE COMPANY SAID THAT OVER THE NEXT THREE YEARS IT WILL DEVELOP A NEW GENERATION OF CHEAPER PARALLELPROCESSING COMPUTERS THAT MIGHT ONE DAY REPLACE MAINFRAMES FUJITSU ALSO RECENTLY PURCHASED A US COMPANY THAT DESIGNS KEY CHIPS FOR SMALLER COMPUTERS SUCH AS WORKSTATIONS WITH THE CHANGES IN THE COMPUTER INDUSTRY TOWARD RIGHTSIZING AND DOWNSIZING THERE'S REALLY NO REASON FOR THEM TO PAY THESE HUGE SUMS TO IBM ANY MORE SAID BROOKE CROTHERS AN ANALYST WITH INTERNATIONAL DATA CORP IN JAPAN FUJITSU'S ACTION IS THE LATEST TWIST IN A COMPLEX AND UNUSUAL SOFTWARESHARING AGREEMENT IT MAINTAINED WITH IBM FOR MORE THAN FIVE YEARS ARBITRATORS IMPOSED THAT SCHEME IN 1987 AS A WAY OF RESOLVING IBM'S CHARGES THAT FUJITSU HAD ILLEGALLY COPIED ITS MAINFRAME SOFTWARE AS A RESULT OF THAT SETTLEMENT FUJITSU PAID IBM A TOTAL OF 8332 MILLION FOR PAST USE OF ITS SOFTWARE AND AGREED TO PAY AN ANNUAL FEE FOR FUTURE ACCESS TO IBM'S PROGRAMS ARBITRATORS EVEN SET UP A SECRET CONTROLLED FACILITY IN JAPAN WHERE FUJITSU COULD EXAMINE CERTAIN ASPECTS OF IBM'S OPERATING SOFTWARE WITHOUT COPYING IT WHOLESALE IN 1989 ARBITRATORS SET THE FEE FOR FUJITSU'S ACCESS TO THAT FACILITY AT BETWEEN 257 MILLION AND 513 MILLION INFORMATION WASN'T AVAILABLE ON FEES CHARGED IN MORE RECENT YEARS WHILE FUJITSU HAS OPTED NOT TO STUDY ANY OF THE SOFTWARE IBM DEVELOPS IN 1993 IT STILL HAS THE OPTION TO PAY FOR ACCESS TO SOFTWARE DEVELOPED BETWEEN 1994 AND MID1997 WHEN THE ARBITRATION AGREEMENT EXPIRES THE TERMS OF THE ARBITRATION FORBID FUJITSU AND IBM FROM COMMENTING ON THE ARBITRATION PROCEEDINGS FUJITSU DID NOTE THAT CUSTOMER REQUESTS FOR IBM COMPATIBILITY IN MAINFRAMES HAVE DECLINED SHARPLY IN RECENT YEARS BUT ADDED THAT IT WOULD CONTINUE TO MAINTAIN THE IBMCOMPATIBLE SYSTEMS IT NOW OFFERS 9307190006 930719 THE AUDUBON SOCIETY WON'T CARE IF THESE BIRDS HAVE BEEN TRASHED BY ENRIQUE J GONZALES STAFF REPORTER OF THE WALL STREET JOURNAL THERE AREN'T MANY NEIGHBORHOODS THAT WOULD MOURN THE LOSS OF A FEW FAKE FLAMINGOS BUT THERE AREN'T MANY NEIGHBORHOODS LIKE OAK STREET IN DENTON TEXAS OVER THE PAST YEAR A PUCKISH COMPETITION HAS BROKEN OUT SPONTANEOUSLY ON THIS QUIET SUBURBAN STREET OTHERWISE NORMAL RESIDENTS STARTED DESIGNING ELABORATE LAWN DISPLAYS FEATURING PLASTIC FLAMINGOS LONG AN EXAMPLE OF SUBURBAN BAD TASTE THERE WAS THE FLAMINGO VOLLEYBALL GAME IN MURRAY AND DIANE RICKS'S FRONT YARD COMPLETE WITH A FLAMINGO REFEREE WEARING DARK SHADES AND FLAMINGO PARK IN PAT AND SARA CAREY'S YARD WHERE THE KNOBBYKNEED PINK BIRDS ATE STYROFOAM TYRANNOSAURUS REX BONES IN OTHER YARDS FLAMINGOS PLAYED BASKETBALL PUSHED A LAWNMOWER OR WAVED THE PINK WHITE AND BLUE FLAG IN A FLAMINGO FOURTH OF JULY PARADE IT ALL BEGAN LAST DECEMBER WHEN THE RICKSES WERE PONDERING WHAT TO DO WITH A LARGE CHRISTMASDISPLAY SLEIGH THEY HAD BEEN GIVEN MRS RICKS SUGGESTED PUTTING A BIG FLAMINGO REINDEER AND FLAMINGO SANTA CLAUS ON IT WE ALSO THOUGHT IT WAS THE HEIGHT OF BAD TASTE TO HAVE PINK FLAMINGOS IN THE YARD MR RICKS CONFESSES BUT WE THOUGHT WHAT THE HECK IT WAS FUN SEVERAL NEIGHBORS CAME UP WITH THEIR OWN DISPLAYS STARTING AN INYOURFACE COMPETITION THAT CONTINUED INTO THE SUMMER THIS MONTH HOWEVER MOST OF THE PLASTIC BIRDS ABOUT TWO DOZEN DISAPPEARED I GUESS THEY MIGRATED OR SOMETHING MR RICKS SAYS THE BIRDS SELL FOR 10 A PAIR AT THE LOCAL ME MOSES FIVEANDDIME SO IT ISN'T LIKELY THAT THEY ARE BEING HELD FOR RANSOM AND THE BLACK MARKET FOR FAKE FLAMINGOS HAS NEVER BEEN A HOT ONE SINCE PINK FLAMINGOS ARE NOT NATIVE TO DENTON ONE CAN ONLY ASSUME THEY ARE IN THE LOBBY OF THE PRINCESS HOTEL IN ACAPULCO OR PERHAPS IN MIAMI SAYS DENTON MAYOR BOB CASTLEBERRY BUT WITH THE PINK CRITTERS IN THEIR BLOOD OAK STREETERS AREN'T GIVING UP WITHOUT A FIGHT MR RICKS IS TALKING ABOUT SETTING UP A MOUSETRAP WITH A FLAMINGO AS BAIT SAYS NEIGHBOR CHARLES STAFFORD WE'RE GOING TO PUT THEM OUT THERE WITH TEETH AND WE'RE GOING TO STOP GIVING THEM RABIES SHOTS WE MIGHT EVEN CROSSBREED THEM WITH SOME CARNIVOROUS BIRDS MEANWHILE AT ME MOSES ASSISTANT MANAGER ROBERT VERVER SAYS HE IS ORDERING MORE FLAMINGOS EVERY TWO WEEKS WE DO ORDER QUITE A BIT HE SAYS THEY DO SELL REAL WELL 9307190005 930719 LETTERS TO THE EDITOR ILLEGAL IMMIGRANTS OVERWHELM CITIES THE REMARKS ATTRIBUTED TO ME IN YOUR JUNE 29 ARTICLE ON ILLEGAL IMMIGRATION CLINTON ADMINISTRATION GEARING UP FOR EFFORT TO STRENGTHEN BARRIERS TO ILLEGAL IMMIGRATION MAY HAVE LEFT THE IMPRESSION THAT I WOULD RATHER AVOID DEALING WITH THAT ISSUE ILLEGAL IMMIGRATION IS CERTAINLY A DIFFICULT AND SENSITIVE SUBJECT BUT IT'S NOT ONE THAT I HAVE SHIED AWAY FROM I HAVE LONG FELT THAT OUR NATION'S UNWILLINGNESS TO ADEQUATELY ENFORCE OUR IMMIGRATION LAWS MAKES A MOCKERY OF OUR IMMIGRATION SYSTEM AND THAT IT IS PATENTLY UNFAIR TO THE THOUSANDS OF PEOPLE WHO HAVE WAITED YEARS FOR THE RIGHT TO ENTER THE US LEGALLY IN ADDITION ILLEGAL IMMIGRANTS ARE PLACING TREMENDOUS PRESSURES ON LOS ANGELES AND OTHER CITIES WHERE LARGE NUMBERS OF THEM SETTLE THE AFFECTED COMMUNITIES ARE BEING OVERWHELMED BY THE BURDEN OF PROVIDING EDUCATIONAL HEALTH AND SOCIAL SERVICES FOR THE NEWCOMERS THEY DESPERATELY NEED THE FEDERAL GOVERNMENT TO EASE THIS HARDSHIP BY BETTER ENFORCING OUR IMMIGRATION LAWS IN RESPONSE TO THAT NEED I HAVE INTRODUCED BILLS THAT WOULD INCREASE THE SIZE OF THE BORDER PATROL AND SEPARATE IT FROM THE IMMIGRATION AND NATURALIZATION SERVICE REQUIRE THE DEVELOPMENT OF A FORGERYPROOF SOCIAL SECURITY CARD FOR EVERY AMERICAN TO PROVE WORK ELIGIBILITY AND RESTRICT AUTOMATIC CITIZENSHIP TO USBORN CHILDREN OF CITIZENS AND LEGAL RESIDENTS 9307190004 930719 COMMODITIES GOLD'S RESILIENCE TO POSITIVE INFLATION DATA SETS STAGE FOR METAL TO PIERCE 400ANOUNCE BARRIER BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAN GOLD MOVE HIGHER WITHOUT INFLATION UNTIL LAST WEEK ANALYSTS WEREN'T SURE BUT THEN THE GOVERNMENT REPORTED THAT INFLATION IN JUNE WAS ALL BUT DEAD RATHER THAN PLUNGE IN RESPONSE GOLD HELD ITS OWN ENDING THE WEEK AT 39290 FRIDAY UP 60 CENTS ON THE WEEK SETTING THE STAGE FOR GOLD PRICES TO PUSH THROUGH THE 400 BARRIER SOON ANALYSTS PREDICT THAT GOLD'S RESILIENCE LAST WEEK PRACTICALLY ENSURES THAT SPECULATIVE DEMAND FROM BIG COMMODITY FUNDS AND OTHER INSTITUTIONAL INVESTORS WILL BE SUFFICIENT TO PROPEL GOLD TO AT LEAST 410 AND PERHAPS AS HIGH AS 420 AN OUNCE PRICES LAST SEEN IN AUGUST 1990 WHEN IRAQ INVADED KUWAIT INFLATION ISN'T NECESSARY FOR A SUSTAINED RISE IN GOLD PRICES SAYS JEFFREY CHRISTIAN MANAGING DIRECTOR OF CPM GROUP A PRECIOUSMETALS CONSULTING COMPANY IN NEW YORK IN 1986 WHEN WE HAD THE LOWEST POSTWAR INFLATION RATE AT 19 GOLD ROSE 16 YEAR TO YEAR MR CHRISTIAN SAYS OTHER FACTORS CAN DRIVE GOLD PRICES UP TOO NOT THE LEAST OF WHICH IS THE USE OF BULLION AND GOLD FUTURES AS A CURRENCY HEDGE THE VOLATILITY THAT RACKED EUROPE'S CURRENCIES LATE LAST YEAR AND EARLIER THIS YEAR SENT MANY EUROPEAN INVESTORS TO THE GOLD MARKETS WITH GERMANY APPARENTLY UNWILLING TO LOWER ITS INTEREST RATES AS FAST AS OTHER TROUBLED EUROPEAN NATIONS THAT VOLATILITY COULD REEMERGE HE SAYS THE ANXIETY ABOUT THE VALUE OF CURRENCIES IN EUROPE IN CHINA IN INDIA AND EVEN JAPAN IS PROBABLY THE MAJOR FACTOR STIMULATING INVESTOR DEMAND FOR GOLD ARGUES MR CHRISTIAN WHAT'S MORE HE SUGGESTS THAT INVESTORS AROUND THE WORLD ARE CONFUSED ABOUT WHICH MARKETS THEY SHOULD BE INVESTING IN AND WHICH THEY SHOULD BE AVOIDING THERE'S A GREAT DEAL OF WHAT I CALL ECONOMIC ENNUI' AND GOLD BECOMES ATTRACTIVE IN THOSE CONDITIONS HE SAYS OF COURSE HE ADDS INFLATION COULD EASILY COME BACK INTO THE PICTURE ESPECIALLY ABROAD AND THAT WOULD HELP GOLD TOO ALL OF WHICH SEEMS TO AMOUNT TO A NOLOSE OUTLOOK FOR GOLD PRICES IF EUROPEAN INTEREST RATES KEEP FALLING SAYS MR CHRISTIAN INVESTORS WILL EVENTUALLY BEGIN TO FEAR A RESURGENCE OF INFLATION BUT IF THE GERMAN BUNDESBANK HOLDS THE LINE IT COULD TRIGGER A RENEWED ROUND OF CURRENCY INSTABILITY IN EITHER CASE HE PREDICTS GOLD PRICES WILL RISE WHILE MANY ANALYSTS BELIEVE GOLD IS CAPABLE OF REACHING LEVELS ABOVE 410 IN THE MONTHS AHEAD SOME WONDER IF THE METAL IS CAPABLE OF GETTING BEYOND HISTORIC RESISTANCE LEVELS ABOVE 415 OR 420 AT THOSE LEVELS THEY WARN PRODUCERS AND CENTRAL BANKS COULD BE TEMPTED TO UNLOAD INVENTORY ONTO THE MARKET TED ARNOLD A METALS SPECIALIST FOR MERRILL LYNCH IN LONDON IS LOOKING FOR GOLD TO HIT 415 IN THE NEXT MONTH OR SO BUT HE SAYS THAT'S GETTING VERY CLOSE TO THE TOP OF THE CURRENT MARKET RUN A LARGE NUMBER OF SOUTH AFRICAN AUSTRALIAN AND NORTH AMERICAN PRODUCERS ARE HOLDING BACK FROM FORWARD SELLING UNTIL PRICES EITHER BREAK SIGNIFICANTLY THROUGH THE 400 LEVEL OR THE MARKET SHOWS CLEAR SIGNS OF LOSING ITS MOMENTUM HE SAYS ONCE THE PHYSICAL DISINVESTMENT SELLING STARTS YOU WILL BE AMAZED AT HOW SHARPLY THE PRICE CAN FALL OTHER ANALYSTS ARGUE THAT IT WILL TAKE A SIZABLE INFLATION THREAT TO PULL GOLD PRICES ABOVE THE 420 LEVEL OR EVEN TO KEEP THEM AT CURRENT LEVELS I THINK GOLD CAN CLIMB ON ITS OWN MERITS SAYS MIKE HAMMER A GOLD OPTIONS TRADER ON NEW YORK'S COMMODITY EXCHANGE BUT IF WE BECOME VERY DISINFLATIONARY OVER A LONG PERIOD IF THERE'S NO INFLATION AT ALL OVER A SIXMONTH TIME PERIOD THEN WE PROBABLY WON'T STAY AT THESE LEVELS DEMAND FROM JEWELERS AND OTHER INDUSTRIAL CONSUMERS HAS PROVIDED A CRUCIAL UNDERPINNING TO THE RECENT GOLD RALLY ALTHOUGH RISING GOLD PRICES HAVE SLOWED PURCHASES BY PRICESENSITIVE CONSUMERS OF GOLD JEWELRY IN CHINA HONG KONG AND TAIWAN A CRUCIAL TEST OF DEMAND FROM THE JEWELRY INDUSTRY LOOMS THIS FALL USUALLY THE PEAK PRECHRISTMAS BUYING SEASON IT REMAINS TO BE SEEN WHETHER THE CHINESE ARE PREPARED TO COME BACK IN AS BUYERS IF THEY PERCEIVE A NEW HIGHER TRADING RANGE NEAR 400 AN OUNCE SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH IN NEW YORK IF PHYSICAL DEMAND DOESN'T REEMERGE PARTICULARLY FROM CHINA THEN EVENTUALLY THE SPECULATIVE BUYING WILL RUN ITSELF OUT AND THE MARKET WILL SUFFER A SETBACK TECHNICAL ANALYSTS CONTEND THAT GOLD LOOKS WELLSUPPORTED AT CURRENT PRICES BUT MUST SOON BREAK THROUGH 400 IF IT IS TO AVOID A MAJOR CORRECTION FIRST WE NEED A SETTLEMENT ABOVE 400 AN IMPORTANT PSYCHOLOGICAL LEVEL TO TAKE THIS MARKET TO THE NEXT SIGNIFICANT TECHNICAL RESISTANCE LEVEL AT 416 SAYS SCOTT MEYERS SENIOR ANALYST WITH REDEL TRADING IN NEW YORK BEYOND THAT LEVEL THE UPSIDE IS UNLIMITED ONCE YOU GET PAST 416 YOU'VE TAKEN OUT A THREEYEAR HIGH BUT HE ADDS THAT AT SOME POINT THE FAILURE TO TOP 400 WILL UNDERCUT THE RALLY IF WE KEEPING FLIRTING WITH 400 AND FAIL TO SETTLE ABOVE 400 OVER TIME THIS WILL FLASH A SIGNIFICANT SELL SIGNAL HE WARNS 9307190003 930719 ECONOMY FACTORY OUTPUT DROPPED 02 IN JUNE IN FIRST DECLINE SINCE SEPTEMBER 1992 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MANUFACTURING SECTOR IS SHOWING NO SIGNS OF EMERGING FROM ITS PROTRACTED SLUMP THE LATEST BAD NEWS THE FEDERAL RESERVE SAID OUTPUT AT THE NATION'S FACTORIES MINES AND UTILITIES DROPPED 02 IN JUNE ITS FIRST DECLINE SINCE SEPTEMBER ALSO THE FED REVISED ITS INDUSTRIAL PRODUCTION FIGURE FOR MAY SHOWING IT WAS FLAT INSTEAD OF SLIGHTLY INCREASING AS INITIALLY ESTIMATED MANUFACTURERS ARE FRIGHTENED AND THEY ARE TAKING AN ULTRACAUTIOUS APPROACH RIGHT NOW SAID DOUGLAS HANDLER ECONOMIST FOR DUN & BRADSTREET IN NEW YORK MR HANDLER NOTED THAT A RECENT DUN & BRADSTREET SURVEY SHOWED MANUFACTURING LEADERS ARE VERY CONCERNED ABOUT HIGHER TAXES TRADE ISSUES AND HEALTHCARE COSTS THE MANUFACTURING SECTOR HAS BEEN ON WOBBLY GROUND ALL YEAR FACTORIES HAVE BEEN CUTTING EMPLOYEES AND ORDERS HAVE BEEN SLOW ANALYSTS SAID THE NATION'S FACTORIES ARE BEING HURT BY WEAK CONSUMER SPENDING AND SLOW ECONOMIES OVERSEAS WHICH HAVE CRIMPED US EXPORT STRENGTH US EXPORTS ACTUALLY DID PICK UP SOME STEAM IN MAY ACCORDING TO THE COMMERCE DEPARTMENT HELPING TO NARROW THE TRADE DEFICIT TO 837 BILLION FROM 1018 BILLION IN APRIL HOWEVER ANALYSTS SAID THE SMALL GROWTH IN EXPORTS CONCENTRATED IN INDUSTRIAL SUPPLIES AND CONSUMER GOODS WASN'T ENOUGH TO SUGGEST THAT EXPORTS ARE GAINING MOMENTUM THE EXPORT PROBLEM IS LIKELY TO LAST FOR A WHILE SAID CYNTHIA LATTA SENIOR FINANCIAL ECONOMIST FOR DRI MCGRAWHILL FOREIGN ECONOMIES ARE STILL WEAK EXPORTS ROSE TO 3895 BILLION FROM 3848 BILLION WHILE IMPORTS DECLINED TO 4732 BILLION FROM 4866 BILLION SEPARATELY CONSUMER CONFIDENCE TOOK A BIG DECLINE IN EARLY JULY ACCORDING TO MARKET SOURCES WHO HAVE SEEN THE UNIVERSITY OF MICHIGAN CONSUMER INDEX THE INDEX WHICH IS AVAILABLE ONLY TO SUBSCRIBERS DROPPED TO 652 IN MIDJULY FROM 704 IN JUNE THE DECLINE CONTINUES A PERIOD OF DEEPENING DEPRESSION AMONG AMERICANS WHO ARE UPSET ABOUT EVERYTHING FROM JOB PROSPECTS TO TAXES HOWEVER SPENDING INCREASES ALTHOUGH SLIGHT SUGGEST THAT THE BAD MOOD DOESN'T MEAN CONSUMERS ARE PLANNING TO SPEND LESS IN JUNE INDUSTRIAL PRODUCTION WAS DRAGGED DOWN MAINLY BY A DROP IN AUTO ASSEMBLIES OTHER INDUSTRIES WERE ALSO WEAK INCLUDING HOME GOODS CONSUMER NONDURABLES INDUSTRIAL EQUIPMENT AND CONSTRUCTION SUPPLIES SEVERAL ECONOMISTS SUGGESTED INDUSTRIAL PRODUCTION WILL IMPROVE IN COMING MONTHS BECAUSE AUTO MAKERS HAVE BEEFED UP PRODUCTION SCHEDULES FOR AUGUST TO KEEP UP WITH DEMAND AND CONSTRUCTION SUPPLIES WILL BE NEEDED TO CLEAN UP AFTER THE MIDWEST FLOOD ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN JUNE THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR JUNE STOOD AT 1101 OF THE 1987 AVERAGE 9307190002 930719 CAPITAL GAINS A PAL IN CONGRESS IS GOOD FOR THE BOTTOM LINE SENATOR WRITES A LAW TO HELP SMALL BUSINESS ACTUALLY A PARTICULAR SMALL BUSINESS BY BOB DAVIS AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TAKE A ONETIME POWERHOUSE OF THE CHRISTIAN RIGHT FORMER PHOENIX CONGRESSMAN JOHN CONLAN THEN STIR IN ARIZONA'S SEN DENNIS DECONCINI A DEMOCRAT RUNNING LIKE A WOUNDED JACKRABBIT IN NEXT YEAR'S ELECTION IN THE GREAT STEW OF WASHINGTON POLITICS YOU HAVE THE RECIPE FOR ONE SWEET DEAL THIS IS A STORY ABOUT THAT MOST PROSAIC OF ITEMS THE TONER CARTRIDGE THAT GOES INTO LASER PRINTERS LESS PROSAICALLY IT IS A STORY ABOUT HOW WITHOUT HEARINGS OR PUBLIC DEBATE MR DECONCINI AMENDED FEDERAL LAW TO GIVE MR CONLAN FIRST DIBS ON THE ROUGHLY 200 MILLIONAYEAR FEDERAL MARKET FOR TONER CARTRIDGES IN THE PROCESS SHAKING UP BOARDROOMS ALL THE WAY TO TOKYO WE DID A STEALTH BOMBER IN CONGRESS MR CONLAN BOASTS WE CAME IN UNDER THEIR RADAR SCREEN THE SENATE APPROPRIATIONS SUBCOMMITTEE WITH JURISDICTION OVER FEDERAL PURCHASING AGENCIES WHICH SEN DECONCINI CHAIRS IS SCHEDULED TO REVIEW THE MATTER TOMORROW WHEN IT TAKES UP NEXT YEAR'S BUDGET WHATEVER HAPPENS THE SAGA OF THE TONER CARTRIDGES IS ALREADY ONE OF THOSE INSIDEWASHINGTON TALES THAT EXPLAIN JUST HOW THINGS WORK AND PERHAPS WHY THEY SOMETIMES DON'T WORK IN THE CAPITAL THE STORY STARTS IN 1990 WHEN THE HARVARDEDUCATED MR CONLAN SON OF THE LATE BASEBALL HALL OF FAME UMPIRE JOCKO CONLAN AND HIS WIFE STARTED CARTRIDGE TECHNOLOGY NETWORK INC IN HERNDON VA AND ORGANIZED A DOZEN CARTRIDGE RECYCLERS TO BID ON FEDERAL BUSINESS CARTRIDGE RECYCLING OR REMANUFACTURING IS A GRITTY BUSINESS MATCHING 4000 SMALL GARAGESTYLE OPERATIONS AGAINST SUCH HUGE US AND JAPANESE PLAYERS AS HEWLETTPACKARD CO AND CANON INC MR CONLAN'S ALLIANCE OF SMALL PLAYERS SOON FIZZLED OUT BECAUSE HE COULDN'T COME UP WITH MANY FEDERAL ORDERS SAYS MICHAEL BYERLY PRESIDENT OF INTERSTATE TONER & RIBBON CO IN KANSAS CITY MO AN EARLY MEMBER OF CARTRIDGE TECHNOLOGY EVENTUALLY CARTRIDGE TECHNOLOGY WAS REDUCED TO THE REMANUFACTURING BUSINESSES RUN BY MR CONLAN AND HIS WIFE ON THE SURFACE THE 56YEAROLD LAWMAKER WOULD SEEM TO BE A MOST UNUSUAL ALLY AFTER ALL HE IS A DEMOCRAT WHILE MR CONLAN 62 NOT ONLY SERVED TWO TERMS IN CONGRESS AS A REPUBLICAN BUT WAS ONE OF THE FIRST TO BENEFIT FROM THE POLITICAL POWER OF THE CHRISTIAN RIGHT MOVEMENT WHAT THE TWO MEN DO SHARE THOUGH IS A HISTORY OF COMMON ENEMIES AT HOME MR DECONCINI WAS FIRST ELECTED TO THE SENATE IN 1976 IN PART BECAUSE HIS REPUBLICAN OPPONENT THENREP SAM STEIGER HAD BEEN BADLY BLOODIED IN A BITTER PRIMARY FIGHT WITH MR CONLAN MOREOVER MR DECONCINI'S LIKELY REPUBLICAN OPPONENT NEXT YEAR REP JOHN KYL HAD HIS OWN NASTY PRIMARY FIGHT WITH MR CONLAN IN 1986 SEN DECONCINI TARRED BY HIS TIES TO FORMER SAVINGSANDLOAN MAGNATE CHARLES KEATING NEEDS ALL THE HELP HE CAN GET WHETHER MR CONLAN HAS MUCH CLOUT LEFT IN ARIZONA POLITICS IS AN OPEN QUESTION BUT THE CHRISTIAN RIGHT IS STILL A CLEAR FORCE AND IN A CLOSE ELECTION HE COULD WELL TIP THE BALANCE BECAUSE SOME PEOPLE FOLLOW HIS WORD FANATICALLY SAYS WASHINGTON CONSERVATIVE ACTIVIST PAUL WEYRICH A PAST ALLY AND LATER CRITIC OF MR CONLAN MR DECONCINI THOUGH BRIDLES AT ANY SUGGESTION OF A POLITICAL DEAL I SUPPORT SMALL BUSINESS SAYS THE SENATOR WHO SAYS HE CLEARED THE CHANGE IN THE LAW WITH THE GENERAL SERVICES ADMINISTRATION WHICH BUYS MANY OF THE FEDERAL GOVERNMENT'S TONER CARTRIDGES WHATEVER HIS MOTIVATION MR DECONCINI DOESN'T HIDE THAT HE HELPED MR CONLAN LAST SUMMER HE SAYS THENREP CARROLL HUBBARD OF KENTUCKY A FRIEND AND ADMIRER OF MR CONLAN ASKED ME TO SEE HIM THE THREE MET ON JULY 23 TWO MONTHS AFTER MR HUBBARD WHO HAD 152 OVERDRAFTS AT THE NOWDEFUNCT HOUSE BANK WAS DEFEATED IN A DEMOCRATIC PRIMARY DAYS LATER MR DECONCINI ATTACHED A PROVISION TO AN APPROPRIATIONS BILL INSTRUCTING THE GOVERNMENT TO BUY REMANUFACTURED TONER CARTRIDGES WHICH COST ONLY ABOUT HALF AS MUCH AS NEW ONES BUT WHICH SOMETIMES SUFFER FROM QUALITY PROBLEMS AS THE BILL PROGRESSED THROUGH CONGRESS AND ON THE ADVICE OF MR CONLAN'S LAWYER THE LANGUAGE WAS FURTHER TIGHTENED THE CARTRIDGES WERE TO BE PURCHASED FROM SMALL BUSINESSES THAT REMANUFACTURED THEM IN THE US AND THE REMANUFACTURERS HAD TO BE CERTIFIED BY AN INDEPENDENT LABORATORY WHEN THE LAW CLEARED CONGRESS ON OCT 1 THERE WAS PRECISELY ONE COMPANY THAT MET ALL THOSE CONDITIONS CARTRIDGE TECHNOLOGY IN JANUARY OF 1991 MR CONLAN HAD PAID TORREY PINES RESEARCH INC A LASERPRINTER LABORATORY TO INSPECT HIS FACILITIES AND CERTIFY THAT HIS CARTRIDGES MEET OR EXCEED INDUSTRY STANDARDS TORREY PINES SAYS IT HAD NEVER BEEN ASKED TO DO SUCH A CERTIFICATION BEFORE EVEN BY THE STEALTHY STANDARDS OF WASHINGTON THE PROVISION WAS HANDLED QUIETLY TORREY PINES AND UNDERWRITERS LABORATORIES INC WHICH ARE MENTIONED EXPLICITLY IN A LEGISLATIVE REPORT EXPLAINING THE LAW SAY THEY KNEW NOTHING ABOUT THE MEASURE UNTIL IT PASSED EVEN MR CONLAN'S WIFE IRENE CHAIRWOMAN AND 25 OWNER OF CARTRIDGE TECHNOLOGY SAYS HER HUSBAND NEVER TOLD HER OF THE PROVISION BEFORE IT BECAME LAW THE WAY THE LAW WAS WRITTEN WAS TO BENEFIT JOHN CONLAN CHARGES JAMES GAFFNEY PRESIDENT OF TONER ETC INC A PORTSMOUTH NH COMPETITOR OF MR CONLAN'S THAT FINALLY GOT TORREY PINES CERTIFICATION LAST MONTH TOM BARRETT PRESIDENT OF BAY AREA DATA SUPPLY OF SUNNYVALE CALIF WHOSE FIRM WAS DISQUALIFIED ON A PENTAGON CONTRACT LAST MONTH BECAUSE IT DIDN'T HAVE THE NECESSARY CERTIFICATION CHARGES CONLAN WOULD SWEEP EVERYBODY OUT IF HE COULD NOT ALL REMANUFACTURERS ARE UPSET BY ANY MEANS SOME OF MR CONLAN'S COMPETITORS LIKE THE LAW BECAUSE THEY FIGURE IT WILL HELP THEM GET MORE BUSINESS BUT MOST REMANUFACTURERS ARE SO TINY THEY CAN'T AFFORD THE 5000 OR SO IT COSTS TO GET CERTIFIED MR CONLAN REFERS TO THEM AS SCHLOCK ARTISTS WHO WON'T SPEND THE MONEY NECESSARY TO ASSURE THE GOVERNMENT THEY ARE PRODUCING HIGHQUALITY CARTRIDGES BUT SEN DECONCINI NOW SAYS THAT CERTIFICATION WAS A MISTAKE AND HE PLANS TO TAKE OUT THE REQUIREMENT MEANWHILE THE DEALERS FOR THE BIG LASERPRINTER COMPANIES ARE FURIOUS MY COMPANY WILL LOSE CLOSE TO 3 MILLION WORTH OF BUSINESS THAT'S A HUGE AMOUNT OF BUSINESS FOR US COMPLAINS TOM FLEMING PRESIDENT OF ABM OFFICE SUPPLY ST LOUIS WHICH CARRIES CARTRIDGES MADE BY HEWLETTPACKARD INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC THE BIG COMPANIES THEMSELVES ARE ANGRY TOO BUT MORE MUTED ABOUT IT AT LEAST IN PUBLIC RICHARD BELLUZZO VICE PRESIDENT OF HEWLETTPACKARD COMPLAINS THE LAW PRECLUDES US FROM COMPETING FOR SALES OF TONER CARTRIDGES THE COMPANY HASN'T GIVEN UP THOUGH IT HAS ENLISTED SEN MARK HATFIELD OF OREGON THE TOP REPUBLICAN ON THE APPROPRIATIONS COMMITTEE TO GET SOME RELAXATION OF THE RULES IN THE MEANTIME MR CONLAN IS DOING QUITE NICELY AS MORE AND MORE FEDERAL BUYERS SLOWLY LEARN OF THE LAW'S EXISTENCE HE IS DOING WHAT HE CAN TO HELP THE BROCHURES HE PASSES OUT TO GOVERNMENT AND CORPORATE CLIENTS REPRODUCE THE LANGUAGE OF THE LAW HE RECENTLY MOVED TO BIGGER HEADQUARTERS AND EXPECTS TO DOUBLE HIS BUSINESS TO 3 MILLION THIS YEAR IN APRIL THE DEFENSE DEPARTMENT'S RICHMOND SUPPLY DEPOT AWARDED HIM A 180000 CONTRACT TO SUPPLY 6000 CARTRIDGES MR CONLAN IS GRATEFUL FOR SEN DECONCINI'S HELP BUT HE INSISTS THAT DECONCINI DIDN'T DO ME ANY FAVORS BY SUPPORTING THE LEGISLATION HE ALSO SAYS HE DOESN'T HAVE ANY PLANS TO HELP THE EMBATTLED SENATOR OUT IN NEXT YEAR'S ELECTION WHEN IT COMES TO POLITICS HE SAYS I'M RETIRED 9307190001 930719 ABREAST OF THE MARKET LOW RATES LACK OF INFLATION SET STAGE FOR FURTHER GAINS BY BIG STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOW MUCH HIGHER CAN STOCKS FLY TUMBLING INTEREST RATES BROUGHT THE DOW JONES INDUSTRIAL AVERAGE TO WITHIN A FEW POINTS OF ITS ALLTIME HIGH OF 355483 LAST THURSDAY RAISING EXPECTATIONS OF A PROLONGED SUMMER RALLY THAT WOULD SEND PRICES SOARING A SHARP 2264POINT SELLOFF FRIDAY TRIGGERED BY SOME WEAK CORPORATE PROFIT REPORTS DID LITTLE TO QUASH THOSE EXPECTATIONS INVESTORS ARE LOOKING AT ALMOST THE BEST OF ALL WORLDS ASSERTS JOSEPH MCALINDEN CHIEF STOCK MARKET STRATEGIST AT DILLON READ WE'VE JUST BEEN TOLD WE HAVE ZERO INFLATION WE HAVE A RECORD LOW ON BOND YIELDS WE'VE PUT THE FEAR OF FED TIGHTENING BACK IN THE CLOSET AND THE DOLLAR HAS STOPPED ITS FREE FALL EVEN THE SLUGGISH ECONOMY DOESN'T WORRY HIM HE BLAMES SOME OF THE WEAK ECONOMIC DATA SEEN IN JUNE ON THE LEFTOVER EFFECTS OF THE SPUTTERING ECONOMY LATE IN THE FIRST QUARTER NOW HE SAYS INVESTORS SHOULD BE POSITIONING THEMSELVES FOR A RALLY THAT WILL CARRY THE INDUSTRIAL AVERAGE TO 3700 BY THE END OF THE SUMMER A 48 GAIN FROM ITS CURRENT LEVEL YOU HAVE THE PERFECT LOVE POTION FOR EQUITIES PROCLAIMS WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS HE'S EXPECTING INTEREST RATES TO STAY STABLE OVER THE SUMMER PROVIDING A FOUNDATION FOR A STOCK MARKET RALLY BUILT WITH STRONG CORPORATE EARNINGS DESPITE OCCASIONAL UPSETS IN EARNINGS EXPECTATIONS MR DODGE IS COUNTING ON CORPORATE AMERICA TO PRODUCE FATTER PROFITS EVEN IN THE FACE OF A SLOWGROWTH ECONOMY BY THE END OF THE SUMMER HE EXPECTS THE INDUSTRIAL AVERAGE TO HAVE HIT 3650 AND THE STANDARD & POOR'S 500STOCK INDEX TO HAVE BREACHED 470 FOR A 53 GAIN THIS MAY BE THE MOST IMPRESSIVE BUSINESS CYCLE EXPANSION IN MODERN HISTORY BECAUSE IT IS OCCURRING WITHOUT SIGNIFICANT FISCAL STIMULUS SAYS MR DODGE EVEN IF YOU FACTOR IN A RISE IN INTEREST RATES THIS MARKET IS NOT EXPENSIVE PROVIDED THAT EARNINGS CONTINUE TO IMPROVE WHAT'S MORE IF YOU'RE WILLING TO BET THAT FALLING INTEREST RATES ABROAD CAN TURN AROUND THE AILING ECONOMIES OF EUROPE AND JAPAN HE SUGGESTS THE BEST RETURNS MAY BE IN TECHNOLOGY STOCKS A SECTOR THAT HAS HAD ITS SHARE OF TROUBLES LATELY THERE ARE TREMENDOUS OPPORTUNITIES IN STOCKS LIKE HEWLETTPACKARD AND NOVELL HE ARGUES THE STOCKS OF AMERICAN AUTO MAKERS HAVE BEEN DOING FAIRLY WELL BUT THEY HAVE FURTHER TO GO SAYS MR DODGE AFTER YEARS OF RETRENCHMENT AND STREAMLINING IT IS ONLY BECOMING EVIDENT NOW JUST HOW COMPETITIVE AMERICAN AUTO MAKERS ARE AND FOR A CHANGE THEY HAVE A SHOT AT GAINING BACK SOME OF THE MARKET SHARE LOST IN THE PAST DECADE TO JAPANESE MANUFACTURERS THEN THERE ARE THE EXPORT STOCKS SHARES OF COMPANIES THAT SEND A SIGNIFICANT PORTION OF THEIR PRODUCTS ABROAD SURE WITH FOREIGN ECONOMIES STUMBLING BADLY THEY DON'T LOOK LIKE SCREAMING BUYS AT THE MOMENT HE CONCEDES BUT AS SOON AS THOSE ECONOMIES BEGIN TO RECOVER ISSUES SUCH AS FOSTER WHEELER INGERSOLLRAND AND EMERSON ELECTRIC SHOULD REBOUND SMARTLY HE SAYS RICHARD SCHMIDT EDITOR OF THE RISK REPORT AN INVESTMENT NEWSLETTER PUBLISHED IN NAPLES FLA BUYS ALL THOSE ARGUMENTS FOR A STRONGER STOCK MARKET AND ADDS ONE OF HIS OWNTHE REDEMPTION OF BILLIONS OF DOLLARS OF BONDS THIS MONTH THAT WILL PUT MORE CASH IN THE TILLS AT STOCK MUTUAL FUNDS THIS MONTH WE ARE SEEING THE LARGEST DOLLAR AMOUNT OF BOND REDEMPTIONS IN THE HISTORY OF THE MARKETS DECLARES MR SCHMIDT WHO ESTIMATES THAT SOME 12 BILLION IN MUNICIPAL BONDS WILL BE REDEEMED THIS MONTH I THINK A SIGNIFICANT PORTION OF THAT MONEY IS GOING INTO THE STOCK MARKET BECAUSE THERE IS NO PLACE ELSE FOR IT TO GO HE SAYS SUCH A TIDAL WAVE OF CASH COULD CARRY STOCK PRICES 5 HIGHER IN COMING MONTHS BUT SOME ANALYSTS WORRY THAT A MAJOR ROADBLOCK TO HIGHER PRICES WILL BE POLITICS STEVEN EINHORN STOCK STRATEGIST AT GOLDMAN SACHS SUGGESTS THAT STOCK PRICES ARE LIKELY TO REMAIN STUCK IN A TRADING RANGE I THINK THERE IS A LOT OF UNCERTAINTY SURROUNDING THE PRESIDENT'S BUDGET PACKAGE AND HEALTHCARE REFORM SAYS MR EINHORN HE FEARS THE S&P WILL TRADE IN A RANGE OF 435 TO 455 OVER THE NEXT FEW MONTHS BUT AS POLITICAL UNCERTAINTIES BEGIN TO DISSIPATE IN THE FALL MR EINHORN LOOKS FOR A 5 GAIN IN STOCK PRICES BUT EVEN THE MOST PERSUASIVE ARGUMENTS DON'T SWAY SOME DYEDINTHEWOOL BEARS SUCH AS STAN SALVIGSEN OF COMSTOCK PARTNERS MR SALVIGSEN HAS BEEN BEARISH ON US STOCKS FOR MORE THAN A YEAR AND DESPITE THE 68 GAIN IN THE DOW INDUSTRIALS THIS YEAR HE'S STICKING TO HIS GUNS IF YOU MAKE YOUR CASE ON THE MARKET BEING EXPENSIVE IT DOESN'T GET CHEAPER WHEN IT GETS HIGHER SAYS MR SALVIGSEN HE LIKES TO REMIND INVESTORS WHO ARE COUNTING ON GROWING EARNINGS TO SUPPORT THE MARKET ABOUT WHAT HAPPENED IN 1987 AND 1988 EVEN THOUGH THERE WERE FOUR QUARTERS OF GOOD EARNINGS IN 1988 THE MARKET WENT DOWN 40 BEFORE THE GOOD EARNINGS CAME THROUGH BASICALLY HE SAYS THE POTENTIAL REWARDS OF A FURTHER RALLY AREN'T WORTH THE RISKS OF A BIG DECLINE IF I THOUGHT THERE WAS GOING TO BE A 4000 DOW I'D BE A PLAYER HE SAYS BUT I DON'T THINK THERE'S ENOUGH LEFT ON THE TABLE TO PUT YOUR MONEY AT RISK A ROUT IN TECHNOLOGY STOCKS LED BROAD MARKET INDEXES SHARPLY LOWER THE DOW JONES INDUSTRIAL AVERAGE FELL 2264 POINTS TO 352829 IN MODERATELY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX SLID 347 POINTS TO 44575 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 151 POINTS TO 24745 THE SELLOFF WAS SPARKED BY THURSDAY'S NEWS OF A MUCH BIGGERTHANEXPECTED QUARTERLY LOSS AT APPLE COMPUTER THOUGH APPLE IS TRADED OVER THE COUNTER TECHNOLOGY STOCKS ON THE BIG BOARD PLUNGED AS WELL FRIDAY INTERNATIONAL BUSINESS MACHINES TUMBLED 1 7/8 TO 45 5/8 HEWLETTPACKARD SLUMPED 5/8 TO 75 1/4 AND COMPAQ COMPUTER PLUNGED 2 1/2 TO 43 3/4 VOLUME ON THE BIG BOARD CLIMBED TO 262290000 SHARES FROM 253315000 THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1024 TO 905 FOR THE WEEK THE DOW INDUSTRIALS ENDED FRACTIONALLY HIGHER AND THE S&P 500 AND THE NEW YORK COMPOSITE INDEX FELL SLIGHTLY TEXAS INSTRUMENTS PLUMMETED 4 TO 71 7/8 IN SPITE OF REPORTING SHARPLY HIGHER SECONDQUARTER PROFIT ANALYSTS SAID THE COMPANY'S STOCK HAD RALLIED IN ANTICIPATION OF A POSITIVE EARNINGS REPORT BEVERLY ENTERPRISES FELL 1 3/8 TO 11 3/4 THE COMPANY WHICH SPECIALIZES IN RETIREMENTLIVING FACILITIES AND PHARMACIES REPORTED A SECONDQUARTER PROFIT THAT FELL SHORT OF WALL STREET'S EXPECTATIONS LIZ CLAIBORNE WAS THE SECOND MOST ACTIVE STOCK TUMBLING 6 7/8 TO 22 3/4 THE DESIGNER OF WOMEN'S CLOTHING TOLD INVESTORS THAT ITS SECONDQUARTER EARNINGS PLUNGED TO 38 CENTS A SHARE FROM 47 CENTS A YEAR AGO LIZ CLAIBORNE BLAMED THE DROP ON CONSERVATIVE BUYING BY RETAIL CUSTOMERS AND SAID THAT EVEN WEAKER CONSUMER SPENDING PATTERNS HAVE FORCED IT TO ESTIMATE THAT PERSHARE EARNINGS FOR THE FULL YEAR PROBABLY WILL BE ABOUT 30 LOWER THAN THE PREVIOUS YEAR'S RESULTS STORAGE TECHNOLOGY PLUNGED 4 5/8 TO 28 5/8 SLIDING FOR THE SECOND STRAIGHT DAY ON THURSDAY THE STOCK DIVED 7 7/8 AS INVESTORS DUMPED SHARES IN RESPONSE TO A SECONDQUARTER LOSS THERE WERE TWO NOTABLE EXCEPTIONS TO FRIDAY'S BROAD MARKET DECLINE POST PROPERTIES THE THIRD MOST ACTIVE STOCK ON THE BIG BOARD JUMPED 2 TO 27 1/2 ON THURSDAY THE COMPANY SOLD 92 MILLION SHARES IN AN INITIAL PUBLIC OFFERING PRICED AT 2550 A SHARE AND GENERAL ELECTRIC ROSE 1 TO 99 7/8 EARLIER LAST WEEK GE REPORTED SECONDQUARTER PROFIT THAT EXCEEDED ANALYSTS' EXPECTATIONS SEE RELATED STORY OTC FOCUS BUT TECHNOLOGY ILLS HURT OTC RALLY WSJ JULY 19 1993 9307160188 930716 WHO'S NEWS PERKINELMER CORP PERKINELMER CORP NORWALK CONN THIS MAKER OF ANALYTIC INSTRUMENTS NAMED WILLIAM B SAWCH 38 YEARS OLD VICE PRESIDENT GENERAL COUNSEL AND SECRETARY TO THE BOARD MR SAWCH WHO HAD BEEN STAFF VICE PRESIDENT BUSINESS DEVELOPMENT SUCCEEDS C WENDELL BERGERE JR 47 WHO LEFT THE COMPANY THE COMPANY ALSO ELECTED JEANLUC BELINGARD AN EXECUTIVE AT ROCHE HOLDING LTD'S F HOFFMANNLA ROCHE LTD IN BASEL SWITZERLAND A DIRECTOR THE ELECTION OF MR BELINGARD 44 INCREASES THE BOARD'S SIZE TO 10 9307160187 930716 OTC FOCUS MARKET REVERSES GAINS FALLING 380 AMID HEAVY SALES OF TECHNOLOGY STOCKS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEROCIOUS SELLING OF TECHNOLOGY ISSUES SENT THE NASDAQ MARKET LOWER REVERSING GAINS LOGGED WEDNESDAY THE NASDAQ COMPOSITE INDEX DROPPED 380 POINTS OR 053 TO 70869 AFTER RALLYING TO A RECORD WEDNESDAY FOLLOWING TWO TAME INFLATION REPORTS THAT SENT BOND YIELDS TO HISTORIC LOWS DECLINING STOCKS LED ADVANCERS 1384 ISSUES TO 1289 TRADERS SAY INVESTORS ARE FOCUSED NOW ON CORPORATE PROFIT REPORTS SCITEX IN ISRAEL PLUNGED 9 5/8 OR 25 TO 28 3/8 FOLLOWING A LESSTHANSTELLAR SECONDQUARTER OUTLOOK THE MAKER OF ELECTRONIC PREPRESS SYSTEMS SAID IT EXPECTS ITS NET INCOME TO FALL BELOW ANALYSTS' ESTIMATE OF ABOUT 80 CENTS A SHARE FOR THE QUARTER DUE TO A SHORTFALL OF REVENUES IN EUROPE THE COMPANY'S DISAPPOINTING PROJECTION MARKS THE THIRD TIME THIS WEEK THAT A NASDAQ TECHNOLOGY STOCK WAS PRESSURED BY EARNINGSRELATED NEWS LEGENT SKIDDED 36 ON MONDAY AND DELL COMPUTER SLUMPED 18 WEDNESDAY ALSO BIG BOARD ISSUE STORAGE TECHNOLOGY REPORTED AN UNEXPECTED SECONDQUARTER LOSS LATE WEDNESDAY CAUSING ITS STOCK TO FALL 7 7/8 TO 33 1/4 LEGENT AND DELL HAD THROWN IN SOME QUESTION MARKS SAID ROBERT PADALA SENIOR VICE PRESIDENT OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE SOME OF THE EARNINGS SURPRISES PEOPLE HAVE HEARD ABOUT HAVE PUT SOME CAUTION IN THE MARKET TRADING WAS HEAVY AND ABOUT ON A PAR WITH WEDNESDAY'S LEVEL TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME REACHED 244295600 SHARES DOWN MARGINALLY FROM THE 244559200 SHARES THAT CHANGED HANDS WEDNESDAY GEORGE JENNISON COMANAGER OF OTC TRADING AT WHEAT FIRST BUTCHER & SINGER SAID THE ROBUST ACTION TODAY IS ENCOURAGING THIS HIGH LEVEL OF ACTIVITY EVEN WITH THE MARKET AT THESE LEVELS WHICH ARE A BIT LOFTY SHOWS WE CAN GO HIGHER HE SAID THE NASDAQ UTILITY INDEX HIT A NEW HIGH FOR THE FOURTH STRAIGHT DAY CLIMBING 868 POINTS OR 091 TO FINISH AT 95557 AMONG COMMUNICATIONS ISSUES LIN BROADCASTING GAINED 1 TO 104 1/4 ERICSSON SHOT UP 7/8 TO 48 1/8 AND LINCOLN TELECOMMUNICATIONS ADDED 3/4 TO 30 SCITEX WASN'T THE ONLY TECHNOLOGY ISSUE TO SLIDE APPLIED MATERIALS OF SANTA CLARA CALIF LOST 2 3/8 TO 59 1/4 AFTER SMITH BARNEY HARRIS UPHAM REPORTEDLY LOWERED ITS RATING TO NEUTRAL FROM BUY A MERRILL LYNCH DOWNGRADING TO INTERMEDIATETERM NEUTRAL FROM ABOVE AVERAGE CAUSED NOVELL TO SLIP 1 1/4 TO 23 1/2 JOSEPH BELLACE AN ANALYST AT THE BROKERAGE FIRM CITED REDUCED REVENUE EXPECTATIONS FROM THE PROVO UTAHBASED COMPANY'S NEW NETWARE 40 SOFTWARE AND CONCERNS ABOUT ACCOUNTS RECEIVABLES LEVELS MR BELLACE ALSO CUT HIS FISCAL 1994 EARNINGS ESTIMATE ONE OF THE MOST ACTIVE ISSUES SYNOPTICS OF SANTA CLARA CALIF GOT POUNDED THE STOCK FELL 6 1/4 OR 16 CLOSING AT 31 3/4 ON VOLUME OF ABOUT 97 MILLION SHARES MORE THAN FOUR TIMES THE NORMAL LEVEL THE LOCAL AREA NETWORK SYSTEMS FIRM REPORTED SECONDQUARTER NET OF 35 CENTS A SHARE COMPARED WITH 12 CENTS A SHARE A YEAR AGO BUT ANALYSTS SAID INVESTORS WERE CONCERNED BY A GROSS MARGIN THAT FELL FROM THE FIRST QUARTER AS WELL AS RISING SALES AND MARKETING EXPENSES GOLDMAN SACHS AND MERRILL LYNCH BOTH CUT THEIR INVESTMENT RATINGS ON THE STOCK CHIPCOM A SOUTHBOROUGH MASS INTELLIGENT HUBS MAKER TUMBLED 3 3/4 TO 46 3/4 IN SYMPATHY WITH SYNOPTICS CAERE CORP OF LOS GATOS CALIF RELINQUISHED 1 1/4 TO 6 3/8 AFTER REPORTING SECONDQUARTER EARNINGS OF JUST TWO CENTS A SHARE WAY BELOW THE 16 CENTS EARNED A YEAR EARLIER ANALYSTS HAD EXPECTED THE SOFTWARE COMPANY TO POST NET INCOME OF SIX CENTS MOST OTHER TECHNOLOGY STOCKS ALSO FELL APPLE COMPUTER EASED 1 1/2 TO 35 3/4 ADOBE SYSTEMS LOST 2 TO 56 1/4 AND CISCO SYSTEMS SLUMPED 4 TO 52 1/4 9307160186 930716 TECHNOLOGY MATSUSHITA CUTS CHEMICAL USE SECAUCUS NJ MATSUSHITA ELECTRIC INDUSTRIAL CO SAID THROUGH ITS US ARM THAT IT ELIMINATED THE USE OF CHLOROFLOUROCARBONS AND OTHER CHEMICALS THAT ERODE THE EARTH'S PROTECTIVE OZONE LAYER FROM ITS FACTORIES IN NORTH AMERICA THE OSAKA JAPANBASED PARENT WHICH MAKES CONSUMER AND INDUSTRIAL PRODUCTS AT 19 PLANTS IN THE US CANADA AND MEXICO SAID IT HAD ACCOMPLISHED ITS OBJECTIVE TWO YEARS BEFORE AN INTERNATIONAL BAN ON CFC PRODUCTION IS SCHEDULED TO TAKE EFFECT IT PLANS TO ELIMINATE THE USE OF SUCH CHEMICALS WORLDWIDE BY YEAR END 9307160185 930716 INTERNATIONAL JAPANESE STEEL OUTPUT RISES 87 TOKYO JAPAN'S STEEL PRODUCTION IN JUNE JUMPED 87 FROM A YEAR EARLIER TO 887 MILLION METRIC TONS FOR THE SEVENTH CONSECUTIVE MONTH OF YEARONYEAR GAINS LARGELY DUE TO CONTINUING ROBUST DEMAND FROM CHINA THE JAPAN IRON AND STEEL FEDERATION ANNOUNCED A METRIC TON IS EQUAL TO 22046 POUNDS JAPAN'S DOMESTIC STEEL DEMAND REMAINS PLAGUED BY A DEARTH OF PRIVATE CAPITAL INVESTMENT AND LOW PERSONAL CONSUMPTION BUT THE 132 TRILLION YEN 12302 BILLION ECONOMIC STIMULUS PACKAGE ANNOUNCED BY THE GOVERNMENT IN APRIL APPEARS TO HAVE BOLSTERED STEEL SENTIMENT AT HOME 9307160184 930716 ISRAEL'S PRICES ROSE IN JUNE JERUSALEM ISRAEL'S CONSUMER PRICE INDEX ROSE 02 IN JUNE BRINGING TO 58 THE COSTOFLIVING INCREASE SINCE JANUARY THE STATISTICS BUREAU SAID IT IS THE SECOND MONTH THAT THE INCREASE HAS BEEN LESS THAN 05 CLOTHING AND SHOE PRICES ROSE BY 16 AND CIGARETTES BY 17 ACCOUNTING FOR THE INDEX RISE ARMY RADIO SAID IT SAID A 36 DROP IN THE COST OF SEASONAL FRUITS AND VEGETABLES KEPT THE INDEX INCREASE LOW THE EXPECTED YEARLY INCREASE IN THE CONSUMER INDEX IS 12 RADIO REPORTS SAID 9307160183 930716 CONSUMER PRICES RISE IN THAILAND BANGKOK CONSUMER PRICES IN THAILAND ROSE 04 IN JUNE FROM MAY AND JUMPED 27 FROM A YEAR AGO DRIVEN MAINLY BY INCREASES IN CLOTHING HEALTH CARE AND TRANSPORTATION COSTS THE BANK OF THAILAND SAID 9307160182 930716 ITALIAN ELECTRICITY USE MILAN ITALIAN ELECTRICITY USE ROSE IN JUNE TO 206 BILLION KILOWATT HOURS UP 31 FROM THE YEAREARLIER PERIOD ACCORDING TO THE STATE ELECTRICITY UTILITY ENEL ENEL SAID THE INCREASE WAS SLIGHTLY LESS AT 29 IF ADJUSTED TO REFLECT THE DIFFERENT NUMBER OF WORKING DAYS IN JUNE 1992 9307160181 930716 AMOCO UNIT TO REDEEM NOTES CHICAGO AMOCO CO A UNIT OF AMOCO CORP SAID IT WILL REDEEM ON AUG 15 ALL 250 MILLION OF ITS 7 7/8 NOTES DUE 1996 THE OIL CONCERN SAID THE REDEMPTION PRICE WILL BE 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9307160180 930716 STONE & WEBSTER PLANS CHARGE NEW YORK STONE & WEBSTER INC SAID IT WILL TAKE A ONETIME NONCASH CHARGE OF 91 MILLION AGAINST SECONDQUARTER EARNINGS FOR COSTS RELATED TO A RECENT RETIREMENT INCENTIVE PLAN MORE THAN 200 EMPLOYEES OF THE ENGINEERING AND CONSTRUCTION COMPANY'S US ENGINEERING GROUP HAVE RETIRED UNDER THE PROGRAM SINCE IT WAS ANNOUNCED IN MARCH THE ENGINEERING GROUP EMPLOYS ABOUT 7000 PEOPLE 9307160179 930716 FINLAND'S INFLATION RATE FALLS HELSINKI FINLAND'S INFLATION RATE FELL TO 21 IN JUNE FROM 26 IN THE PREVIOUS MONTH AND 27 IN JUNE 1992 THE CENTRAL STATISTICAL OFFICE SAID THE MAIN REASON FOR THE DECLINE WAS A 07 FALL IN INTEREST RATES ON HOUSING LOANS AND A 13 REDUCTION IN THE PRICE OF LONGDISTANCE TELEPHONE CALLS THE BUREAU SAID THE LARGEST PRICE INCREASE 69 WAS IN THE TRANSPORT SECTOR DURING THE 12MONTH PERIOD ENDING IN JUNE FOOD PRICES FELL 09 IN THE 12MONTH PERIOD WHILE HOUSING COSTS SLIPPED 28 THE STATISTICS OFFICE SAID 9307160178 930716 HUNGARIAN INFLATION RATE FRANKFURT GERMANY CONSUMER PRICES IN HUNGARY INCREASED 03 IN JUNE FROM MAY AND 209 FROM JUNE 1992 THE MTIECONEWS AGENCY SAID CITING THE CENTRAL STATISTICAL OFFICE THE RISE IN JUNE CONSUMER PRICES FOLLOWED AN INCREASE IN MAY PRICES OF 04 FROM APRIL AND 213 FROM MAY 1992 THE CSO NOTED THAT CONSUMER PRICE INFLATION HAS CONTINUED TO SLOW SINCE JANUARY WHEN PRICES INCREASED 259 FROM JANUARY 1992 9307160177 930716 ONEOKWESTERN RESOURCES TULSA OKLA ONEOK INC SAID WESTERN RESOURCES INC TERMINATED TALKS WITH ONEOK OVER THE SALE OF WESTERN RESOURCES' GAS UTILITY PROPERTIES IN EASTERN KANSAS AND NORTHEASTERN OKLAHOMA ONEOK AN ENERGY COMPANY DIDN'T ELABORATE WESTERN RESOURCES AN ELECTRIC AND GAS UTILITY COMPANY IN TOPEKA KAN SAID LAST MONTH IT WAS NEGOTIATING TO SELL ABOUT HALF OF ITS NATURAL GAS UTILITY OPERATIONS TO SOUTHERN UNION CO AND ONEOK 9307160176 930716 CANADIAN CONSUMER PRICES UP OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 01 IN JUNE FROM MAY STATISTICS CANADA A GOVERNMENT AGENCY SAID FOR THE LATEST THREE MONTHS THE INDEX INCREASED AT A COMPOUND ANNUAL RATE OF 06 CANADA HAS RECORDED ONE OF THE LOWEST INFLATION RATES AMONG INDUSTRIAL COUNTRIES FOR MORE THAN A YEAR 9307160175 930716 BIG BOARD SEAT SALE NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT SOLD A SEAT FOR 725000 UP FROM THE MOST RECENT SEAT SALES PRICE OF 650000 JUNE 4 SEATS ARE CURRENTLY QUOTED AT 675000 BID AND 950000 OFFER 9307160174 930716 LEISURE & ARTS ON SPORTS RETIRED ATHLETES ADRIFT IN REAL WORLD' BY FREDERICK C KLEIN I'D HEARD RUMORS THAT MICHAEL SPINKS THE BOXER WAS CONTEMPLATING COMING OUT OF RETIREMENT SO I GAVE HIM A CALL THE LAST TIME HE'D BEEN IN A PRIZE RING ON JUNE 27 1988 HE'D BEEN FLATTENED BY MIKE TYSON IN JUST 91 SECONDS AND THE EXPERIENCE CONVINCED HIM REASONABLY ENOUGH THAT HIS FUTURE LAY ELSEWHERE FIVE YEARS LATER AT AGE 36 HE WAS SAID TO BE HAVING SECOND THOUGHTS I WAS HOPING SPINKS WOULD SAY IT WASN'T SO I'D SPENT A COUPLE OF DAYS IN HIS TRAINING CAMP IN THE CATSKILL MOUNTAINS BEFORE THAT BOUT AND FOUND HIM TO BE A PLEASANT AND INTROSPECTIVE MAN A RARE FAMOUS ATHLETE WHO COULD DISCUSS SOMETHING OTHER THAN HIMSELF DESPITE HIS ONESIDED LOSS TO TYSON HE'D BEEN A SKILLED AND COURAGEOUS FIGHTER AN OLYMPIC GOLDMEDAL WINNER AND PROFESSIONAL CHAMPION OF TWO DIVISIONS LIGHT HEAVYWEIGHT AND HEAVYWEIGHT HE ALSO UNDERSTOOD WHAT AJ LIEBLING CALLED BOXING'S SCIENTIFIC SIDE AND TURNED HIS NATURAL AWKWARDNESS INTO AN ASSET HE'D SEEMED MOREOVER TO BE AN UNLIKELY PERSON TO SUCCUMB TO THE ADDICTIVE ASPECT OF HIS BRUTAL SPORT AFTER HIS 1976 OLYMPIC TRIUMPH HE RETURNED TO HIS NATIVE ST LOUIS WITH THE INTENTION OF JOINING THE WORKADAY WORLD AND HAD TO BE ENTICED BACK INTO THE RING BY PROMOTER BUTCH LEWIS WITH WHOM HE'S STILL ASSOCIATED FIGHTING ANOTHER MAN IS LIKE HAVING ALL 32 OF YOUR TEETH PULLED SPINKS SAID AS HE PREPARED TO FACE THE DESTRUCTIVE TYSON ANYONE WHO TELLS YOU HE ENJOYS IT IS CRAZY BUT THAT WAS THEN AND THIS IS NOW AND NOW SPINKS ADMITS THAT BOXING IS PULLING HIM BACK I'M STILL AROUND THE GYM YOU KNOW WORKING WITH BUTCH'S FIGHTERS AND HELPING WITH THE PROMOTIONS SO I KNOW WHO'S OUT THERE AND I KNOW THERE ARE A LOT OF GUYS I CAN STILL BEAT HE SAID FROM HIS HOME IN A SUBURB OF WILMINGTON DEL I'VE TALKED IT MY COMEBACK OVER WITH SOME OF THE OLDER FIGHTERS LIKE ARCHIE MOORE AND MUHAMMAD ALI AND THEY TOLD ME THAT IF I HAD THE DESIRE I SHOULD GO AHEAD AND DO IT SPINKS SAID A COUPLE OF THINGS STAND BETWEEN HIM AND A COMEBACK ANNOUNCEMENT ONE IS A KNEE INJURY FROM HIS FIGHTING DAYS THAT HASN'T GONE AWAY SURGERY PROBABLY WILL BE REQUIRED TO CLEAR IT UP THE OTHER IS A NEED TO FALL BACK IN LOVE WITH TRAINING I DIDN'T LOVE EVERYTHING ABOUT BOXING BUT I USED TO ENJOY THE GYM WORK THE BEING WITH THE OTHER GUYS THE PUSHING MYSELF HE EXPLAINED THAT PART REALLY HAD LITTLE TO DO WITH THE ACTUAL FIGHTING AND NONE WITH THE MONEY SIDE AND IT STILL DOESN'T I EARNED ABOUT 24 MILLION IN MY CAREER AND EVEN AFTER TAXES AND EXPENSES I'M SO WELL FIXED I'LL NEVER BE IN NEED BUT I MISS HAVING A GOAL WORKING HARD TRYING TO BE GOOD AT SOMETHING I'M STILL A YOUNG MAN THERE'S NO REASON I CAN'T HAVE THAT AGAIN THOSE LAST LINES WERE I THOUGHT SAD AND EXPLAINED MUCH ABOUT THE POSTRETIREMENT BEHAVIOR OF ATHLETES WHO HAVE BEEN RAISED HIGH BY SPORTS IN RECENT YEARS THE ABSENCE OF ECONOMIC NECESSITY IT SEEMS HAS DONE LITTLE TO AMELIORATE THE PLIGHT OF MEN AND WOMEN WHO HAVE DEVOTED THEMSELVES TO CAREERS THAT MUST END AT A TIME WHEN THOSE OF THEIR CONTEMPORARIES ARE JUST BEGINNING FOR TOO MANY OF THEM THE QUESTION OF WHAT TO DO NEXT ISN'T ASKED UNTIL IT MUST BE ANSWERED AND SO WE SEE THE DREARY SUCCESSION OF COMEBACKS THAT WE AND MAYBE THE ATHLETES INVOLVED KNOW ARE DOOMED BEFORE THEY BEGIN SUCH AS THOSE OF BASEBALL PITCHER JIM PALMER SWIMMER MARK SPITZ AND GYMNAST KURT THOMAS WE SEE ATHLETES WHO MADE A MARK IN ONE SPORT GRASPING PATHETICALLY FOR A FOOTHOLD IN ANOTHER SUCH AS MARK GASTINEAU THE FOOTBALL PLAYER TURNED BOXER AND WE SEE DEVELOPMENTS THAT SEEM SURE TO RESULT IN EVEN WORSE FUTURE PREDICAMENTS IN THE COUNTRYCLUB SPORT OF TENNIS FOR EXAMPLE COMPETITIVE DEMANDS FORCE CHILDREN IN THEIR TEENS TO CHOOSE BETWEEN THEIR SCHOOLING AND ATHLETIC CAREERS PETE SAMPRAS THE WIMBLEDON CHAMP IS A HIGHSCHOOL DROPOUT AND GIRLS SUCH AS JENNIFER CAPRIATI CATCH THEIR BOOKLEARNING WHEN THEY CAN AMID THEIR TENNIS WANDERINGS YES THE MONEY TODAY'S TOP ATHLETES EARN CAN CUSHION THE INEVITABLE BUMP BUT IT CAN'T SOLVE THE PROBLEM OF FILLING THE EMPTY HOURS THIS CAME HOME TO ME A FEW YEARS BACK WHEN I WAS IN LAS VEGAS TO COVER A BOXING MATCH AND STAYING IN THE SAME OFFTHESTRIP HOTEL AS SUGAR RAY LEONARD LEONARD IN THE FIRST OF HIS RETIREMENTS WAS ON HAND TO HELP WITH THE BOUT'S TELECAST YET HE WAS PLAYING TENNIS ON THE HOTEL'S COURTS WHEN I LEFT ON MY ROUNDS IN THE MORNING AND WAS STILL AT IT WHEN I RETURNED SOME SIX HOURS LATER THE MAN'S BORED I RECALL THINKING AND WASN'T SURPRISED TO HEAR SHORTLY AFTERWARD THAT HE WAS RISKING LOSING THE SIGHT IN A SURGICALLY REPAIRED EYE TO RETURN TO THE RING I TOLD THAT STORY TO RALPH CINDRICH AND HE NODDED IN RECOGNITION CINDRICH IS A FORMER NATIONAL FOOTBALL LEAGUE PLAYER TURNED PITTSBURGH LAWYER AND PLAYER AGENT HIS CLIENTS NUMBER OVER 100 AND HE'S SEEN SIMILAR THINGS RELATIVELY FEW PRO ATHLETES ARE READY WHEN THEIR CAREERS END EDUCATIONALLY PSYCHOLOGICALLY OR SOMETIMES FINANCIALLY HE SAID EVEN WHEN THEY SAY THEY ARE THEY AREN'T THESE ARE GUYS WHO THINK THEY'RE INVINCIBLE THEY'VE ALWAYS MADE THE CUT AND BEAT THE ODDS AND BELIEVE THEY CAN CONTINUE TO DO SO IN FOOTBALL WE'RE TALKING ABOUT PEOPLE WHO'VE BEEN TO COLLEGE BUT OFTEN THEY STILL DON'T UNDERSTAND HOW DIFFERENT FROM SPORTS THE REAL WORLD' IS THERE ARE NO CROWDS CHEERING OR PEOPLE TELLING THEM HOW WONDERFUL THEY ARE AND FEW CLEARCUT RESULTS LIKE THEY GOT IN THEIR GAMES AND THE TRANSITION IS SO FAST ALMOST OVERNIGHT THAT IT CAN BE LITERALLY STUNNING I TELL MY CLIENTS IT'S OK TO GOOF OFF AND HAVE FUN AFTER THEIR FIRST PRO SEASON BUT AFTER THAT I WANT THEM TO TAKE AN OFFSEASON JOB CINDRICH WENT ON IT CAN BE IN SALES CONSTRUCTION OR ANYTHING IT DOESN'T HAVE TO LEAD TO ANOTHER CAREER BUT IT'LL GIVE THEM A TASTE OF WHAT THINGS WILL BE LIKE THE REST OF THEIR LIVES SO AT LEAST THEY WON'T COME AS A SHOCK AND DO THEY DO IT 9307160173 930716 GM SIGNS PACT WITH IMPCO PONTIAC MICH GENERAL MOTORS CORP SAID IT SIGNED A TWOYEAR AGREEMENT WITH IMPCO TECHNOLOGIES INC TO DEVELOP A GASEOUS FUEL ENGINE MANAGEMENT SYSTEM THE NEW SYSTEM WILL BE AVAILABLE ON CERTAIN 1994 MODELYEAR CARS AND TRUCKS TERMS WEREN'T DISCLOSED 9307160172 930716 DUPONT BATTLE AGAINST AKZO TAKES NEW TURN ANTIDUMPING CLAIM FILED BY COMPANY RESUMES DECADESOLD HOSTILITIES BY AH MOORADIAN SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM A DECADES OLD BATTLE BETWEEN THE WORLD'S TWO LARGEST PRODUCERS OF SUPERSTRONG ARAMID SYNTHETIC FIBERS TOOK ANOTHER TWIST AS DUPONT INC YESTERDAY FILED AN ANTIDUMPING COMPLAINT IN THE US AGAINST AKZO NV BETWEEN THEM WILMINGTON DELBASED DUPONT AND AKZO OF ARNHEM IN THE NETHERLANDS ACCOUNT FOR MORE THAN 95 OF THE WORLD MARKET FOR THESE KEY INDUSTRIAL FIBERS AKZO MARKETS ITS ARAMIDS UNDER THE NAME TWARON WHILE DUPONT SELLS ITS VERSION UNDER THE WELLKNOWN KEVLAR BRAND NAME DUPONT CLAIMS THAT AKZO IS SELLING ITS TWARON PRODUCTS IN THE US IN A WAY THAT INJURES DUPONT AKZO SAID ADDING THAT AKZO HOLDS THAT DUPONT'S POSITION IS UNFOUNDED AKZO SAID IT IS DEEPLY CONCERNED BY THIS ACTION WHICH COULD CONCEIVABLY PREVENT THE CREATION OF A FREE MARKET FOR PARAARAMID AKZO CAUTIONED THAT THE DUPONT MOVE POTENTIALLY DISALLOWS US PRODUCERS OF PARAARAMID REINFORCED PRODUCTS THE SAME FREE ACCESS AS THEIR COMPETITORS ENJOY OUTSIDE THE US WHILE THIS LATEST ROUND OF LEGAL BATTLES WITH DUPONT CONCERNS AN ANTIDUMPING COMPLAINT THE MOVE REPRESENTS A RESUMPTION OF HOSTILITIES THAT WERE THOUGHT TO HAVE BEEN RESOLVED BY THE TWO BACK IN 1988 WE KNOW THAT IN THE US IT IS COMMON BUSINESS PRACTICE FOR AMERICAN COMPANIES TO START ANTIDUMPING PROCEDURES AN AKZO SPOKESMAN SAID THE DUTCH COMPANY LEARNED OF THE PLANNED COMPLAINT AT THE BEGINNING OF JULY THE OFFICIAL SAID ADDING THAT A PUBLIC HEARING WILL BE HELD AT THE INTERNATIONAL TRADE COMMISSION IN WASHINGTON ON JULY 23 THE SPOKESMAN DECLINED TO DISCUSS DETAILS OF THE SUIT OR ANSWER ANY QUESTIONS ABOUT AKZO'S SALES OF ARAMIDS OR MARKET SHARES BECAUSE OF THE COMING HEARINGS AT STAKE IS THE BIG US MARKET FOR ARAMID FIBERS WHICH HAVE APPLICATIONS IN A WIDE RANGE OF MANUFACTURED GOODS SUCH AS AUTOMOBILE COMPONENTS CONSTRUCTION MATERIALS CABLES TIRES AND PROTECTIVE MATERIALS AMONG OTHERS AKZO MAKES ITS ARAMIDFIBER PRODUCTS IN A 5050 JOINT VENTURE WITH THE DUTCH GOVERNMENT'S NORTHERN DEVELOPMENT CO REGIONAL DEVELOPMENT FUND THAT VENTURE CALLED ARAIMIDE MAATSCHAPPIJ VOF PRODUCES TWARON IN THE NETHERLANDS AT PLANTS IN DELFZIJL AND EMMEN AND EXPORTS WORLDWIDE FIVE YEARS AGO AKZO AND DUPONT SETTLED A NUMBER OF LONGRUNNING PATENT SUITS THAT THE COMPANIES HAD PENDING AGAINST EACH OTHER DUPONT WHICH IS THE ONLY USBASED MAKER OF PARAARAMID FIBERS WAS THE FIRST TO BRING THE PRODUCT ONTO THE MARKET IN APRIL 1992 AKZO UNDER US PATENT RULES AND ACCORDING TO ITS 1988 SETTLEMENT WITH DUPONT WAS ALLOWED UNRESTRICTED ACCESS TO THE US ARAMIDFIBERS MARKET THE AKZO SPOKESMAN SAID WE WERE RATHER SURPRISED BY NEWS OF DUPONT'S COMPLAINT GIVEN THE FACT THAT THE DUTCH SUPPLIER HAS BEEN ACTIVE IN THE US FOR ONLY AROUND 14 MONTHS AND THAT THE COMPANY HAS A SMALL PRESENCE IN DUPONT'S BACKYARD AKZO SAID IT EXPECTS THE INVESTIGATION OF DUPONT'S ANTIDUMPING COMPLAINT BY THE ITC AND THE US COMMERCE DEPARTMENT TO TAKE AS MANY AS NINE MONTHS WHILE NOT DISCLOSING HOW ITS ADVANCE INTO THE US MARKET HAS SUCCEEDED THUS FAR IT NOTED THAT IT IS HEARTENED BY THE SUPPORT WE HAVE RECEIVED FROM THE MARKET SO FAR AND WE ARE FIRMLY COMMITTED TO CONTINUE OUR JOINT EFFORTS WITH OUR CUSTOMERS TO ENCOURAGE PARAARAMID FIBER TO GROW INTO A MAJOR REINFORCEMENT MATERIAL FOR THE 21ST CENTURY AKZO IS A MAJOR PRODUCER OF BASIC AND SPECIALTY CHEMICALS FIBERS COATINGS AND HEALTHCARE PRODUCTS A SUBSTANTIAL PORTION OF ITS NEARLY 17 BILLION GUILDERS 88 BILLION OF ANNUAL SALES LAST YEAR WERE DERIVED FROM THE US 9307160171 930716 PRESSURED BY US TAIWAN CONSIDERS CABLETV MEASURE BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN UNDER INTENSE PRESSURE FROM THE US TO IMPROVE PROTECTION OF INTELLECTUALPROPERTY RIGHTS TAIWAN'S RULING PARTY RAMMED THROUGH THE LEGISLATURE THE FIRST LAW GOVERNING THE ISLAND'S BOOMING CABLETELEVISION INDUSTRY BUT THE VOTE ON THE LAW THURSDAY HAS LEFT DEEP ANGER AMONG LAWMAKERS AT WASHINGTON'S PRESSURE AND IF UPHELD IN A FINAL VOTE FRIDAY WILL ELIMINATE THE POSSIBILITY OF FOREIGN INVESTMENT IN THE CABLE TV INDUSTRY AS A RESULT THE LEGISLATION LIKELY HAS PLANTED THE SEEDS FOR A FUTURE BILATERAL TRADE DISPUTE AT THE SAME TIME THAT IT APPEARS TO HAVE PUT ANOTHER TO REST AS THE CABLETELEVISION LAW WAS PUSHED THROUGH THE LEGISLATURE LAWMAKERS LET FLY WITH ANTIAMERICAN SENTIMENT RARELY HEARD IN A COUNTRY THAT NORMALLY FEELS WARMLY ABOUT THE US THE AMERICANS HAVE BULLIED US ENOUGH DECLARED HSIEH CHITA ONE OF THE RULING KUOMINTANG'S MOST RESPECTED LAWMAKERS IN AN INTERVIEW AFTER THE VOTE THEY'VE INTERFERED IN OUR POLITICS TOO MUCH IF WE HAD POWER AND MONEY AND WE WERE TO USE THIS KIND OF PRESSURE AGAINST OTHER COUNTRIES HOW WOULD YOU FEEL THE PASSAGE OF THE LAW COMES AGAINST THE BACKDROP OF A US DEADLINE OF LATE JULY FOR TAIWAN TO IMPLEMENT LEGISLATION PROTECTING COPYRIGHTS PATENTS AND TRADEMARKS FOR THE PAST YEAR TAIWAN HAS BEEN UNDER PRESSURE FROM WASHINGTON TO CRACK DOWN ON WIDESPREAD PIRACY OF VARIOUS FORMS OF INTELLECTUAL PROPERTY INCLUDING SOFTWARE VIDEOTAPES AND COMPACT DISKS PASSAGE OF THE CABLETV LAW WAS A KEY US DEMAND BECAUSE THE ISLAND HAS A HUGE UNDERGROUND CABLE INDUSTRY THAT OFTEN BROADCASTS FOREIGN MOVIES WITHOUT PAYING ROYALTIES TAIWAN'S LAWMAKERS ALSO ARE UNDER PRESSURE TO PASS A PATENT LAW AND A TRADEMARK LAW BEFORE THEIR CURRENT LEGISLATIVE SESSION CONCLUDES FRIDAY THE SPOTLIGHT ON THE CABLETV BILLS COMES AS TAIWANESE AND AMERICAN TRADE NEGOTIATORS ARE MEETING THIS WEEK IN WASHINGTON TO REVIEW TAIWAN'S EFFORTS TO COMPLY WITH US DEMANDS RELATED TO INTELLECTUAL PROPERTY RIGHTS TAIWANESE OFFICIALS SAY THE AMERICAN OFFICIALS HAVE PRESSED THEM HARD ON THE BILLS AS WELL AS ON THE GOVERNMENTS' EFFORTS TO IMPROVE THE ENFORCEMENT OF EXISTING LAWS IF THE CABLETELEVISION LAW SURVIVES ITS FINAL READING TAIWAN WILL REDUCE THE LIKELIHOOD OF THE US IMPOSING SANCTIONS ON THE ISSUE OF INTELLECTUALPROPERTY RIGHTS 9307160170 930716 WHO'S NEWS SEMATECH SEMATECH AUSTIN TEXAS JAMES B OWENS 43 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS COMPUTERCHIP RESEARCH CONSORTIUM MR OWENS AN EXECUTIVE VICE PRESIDENT OF NATIONAL SEMICONDUCTOR CORP WILL SUCCEED WILLIAM L GEORGE 50 A MOTOROLA INC VICE PRESIDENT WHOSE THREEYEAR ASSIGNMENT TO THE CONSORTIUM EXPIRES IN JANUARY 9307160169 930716 GM IS PLANNING TO IDLE ALL ASSEMBLY PLANTS FOR MODEL CHANGEOVER DETROIT GENERAL MOTORS CORP SAID IT WILL IDLE FOR TWO WEEKS ALL US AND CANADIAN VEHICLE ASSEMBLY PLANTS FOR MODEL CHANGEOVER BEGINNING MONDAY IN ADDITION GM SAID A TOTAL OF FIVE ASSEMBLY PLANTS IN LANSING AND ORION TOWNSHIP MICH ARLINGTON TEXAS AND MORAINE OHIO WILL BE IDLE THROUGH LATE AUGUST WHEN 1994 MODELYEAR PRODUCTION BEGINS CHRYSLER CORP SAID IT ADDED ITS ST LOUIS MINIVAN ASSEMBLY PLANT TO ITS LIST OF PLANTS ON MODEL CHANGEOVER NEXT WEEK THE COMPANY SAID THAT THE PLANT WILL RESUME PRODUCTION AFTER A WEEK ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD A TOTAL OF 105813 CARS AND TRUCKS THIS WEEK DOWN 09 FROM THE 106764 VEHICLES BUILT IN THE SAME WEEK A YEAR AGO FOR ALL OF JUNE THE AUTO MAKERS BUILT A TOTAL OF 984710 VEHICLES A 93 INCREASE OVER THE 900530 BUILT IN THE YEAREARLIER PERIOD 9307160168 930716 BUSINESS BRIEF NYNEX SAYS NET ROSE 27 IN 2ND QUARTER DECLARES 2FOR1 SPLIT WHITE PLAINS NY NYNEX CORP SAID SECONDQUARTER EARNINGS ROSE 27 DESPITE A SLUGGISH NORTHEAST ECONOMY AND THE COMPANY ALSO DECLARED A 2FOR1 STOCK SPLIT TO LOWER ITS STOCK PRICE TO THE LEVEL OF OTHER TELECOMMUNICATIONS COMPANIES THE TELECOMMUNICATIONS AND TELEPHONE SERVICE COMPANY SAID NET INCOME FOR THE QUARTER ROSE TO 3402 MILLION OR 165 A SHARE FROM 3311 MILLION OR 162 A SHARE IN THE YEAREARLIER QUARTER THE 1992 PERIOD INCLUDED A GAIN OF 20 MILLION OR 10 CENTS A SHARE DUE TO A FEDERAL TAX SETTLEMENT REVENUE ROSE 22 TO 336 BILLION FROM 329 BILLION EXCLUDING THE EFFECT OF A REGULATORY ACCOUNTING ADJUSTMENT IN 1993 REVENUE ROSE 17 MAINLY DUE TO GROWTH IN ACCESS LINES AND CELLULAR CUSTOMERS THE STOCK SPLIT WILL DOUBLE THE NUMBER OF NYNEX'S SHARES OUTSTANDING TO ABOUT 4124 MILLION AND SHOULD BRING THE MARKET PRICE OF EACH NYNEX SHARE MORE IN LINE WITH THAT OF OTHER TELECOMMUNICATIONS COMPANIES THE COMPANY SAID THE STOCK SPLIT IN THE FORM OF A 100 STOCK DIVIDEND IS PAYABLE AUG 16 TO SHAREHOLDERS OF RECORD AUG 16 NYNEX SHARES CLOSED AT 90875 DOWN 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING REVENUE FROM THE COMPANY'S TELECOMMUNICATIONS GROUP ROSE 21 TO 288 BILLION FROM 282 BILLION BUT THE GROWTH WAS ONLY 15 AFTER EXCLUDING THE EFFECT OF AN ACCOUNTING ADJUSTMENT NYNEX ENJOYED ITS STRONGEST ACCESS LINE GROWTH SINCE 1989 WITH THE NUMBER OF LINES RISING 24 TO 158 MILLION FROM 155 MILLION CELLULAR REVENUE ROSE 18 TO 1059 MILLION FROM 899 MILLION NYNEX CORP DECLARED A 2FOR1 STOCK SPLIT PAYABLE SEPT 15 TO STOCK OF RECORD AUG 16 AN ARTICLE FRIDAY INCORRECTLY SAID THE PAYMENT DATE WAS AUG 16 9307160167 930716 MOODY'S UPGRADED 83 MUNICIPAL DEBT RATINGS IN QUARTER NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT REVISED 133 MUNICIPAL BOND RATINGS DURING THE SECOND QUARTER AFFECTING ABOUT 65 BILLION OF DEBT OVERALL RESULTS FOR THE PERIOD WERE POSITIVE MOODY'S SAID WITH 83 RATINGS RAISED AND 50 LOWERED IN ALL ABOUT 54 BILLION OF DEBT WAS RAISED WHILE ABOUT 11 BILLION WAS LOWERED THE RATINGS AGENCY SAID THAT DURING THE FIRST HALF IT UPGRADED 136 MUNICIPAL RATINGS AFFECTING 7 BILLION OF DEBT AND DOWNGRADED 88 RATINGS AFFECTING 22 BILLION OF DEBT IN THE FIRST HALF OF 1992 BY CONTRAST MOODY'S HAD 102 UPGRADES AFFECTING 62 BILLION OF DEBT AND 109 DOWNGRADES AFFECTING 353 BILLION OF DEBT INCLUDING LOWER RATINGS FOR CALIFORNIA RHODE ISLAND NEW YORK STATE AND NEW YORK CITY'S METROPOLITAN TRANSPORTATION AUTHORITY MOODY'S SAID REVISIONS OF GENERAL OBLIGATION AND OTHER TAXSUPPORTED RATINGS WERE EQUALLY SPLIT BETWEEN UPGRADES AND DOWNGRADES IN THE SECOND QUARTER WHILE 19 BILLION OF TAXSUPPORTED DEBT WAS UPGRADED AND 627 MILLION WAS LOWERED THE REPORT NOTED THAT IN APRIL MOODY'S RAISED THE GENERAL OBLIGATION BOND RATING OF PHILADELPHIA FROM SINGLEB TO BA CITING THE CITY'S SIGNIFICANT DEMONSTRATED PROGRESS TOWARD RESTORING FINANCIAL STABILITY ABOUT 113 BILLION OF DEBT WAS AFFECTED IN THE SECOND QUARTER MOODY'S RAISED 49 REVENUE BOND RATINGS TOTALING ABOUT 35 BILLION AND LOWERED 16 RATINGS TOTALING 424 MILLION 9307160166 930716 WHO'S NEWS LIMITED INC LIMITED INC COLUMBUS OHIO WILLIAM K GERBER WAS NAMED VICE PRESIDENT FINANCE A NEW POSITION AT THE SPECIALTY RETAILING CONCERN MR GERBER 39 YEARS OLD WILL REPORT TO KENNETH B GILMAN VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER MR GERBER WHO JOINED LIMITED IN 1983 MOST RECENTLY WAS VICE PRESIDENT AND CORPORATE CONTROLLER 9307160165 930716 WHO'S NEWS BLACK & DECKER CORP BLACK & DECKER CORP TOWSON MD BARBARA L BOWLES 44 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MAKER OF POWER TOOLS AND HOUSEHOLD APPLIANCES MS BOWLES PRESIDENT OF KENWOOD GROUP INC CHICAGO SUCCEEDS PETER L SCOTT 65 WHO RETIRED MR SCOTT WAS CHAIRMAN AND PRESIDENT OF EMHART CORP WHEN IT WAS ACQUIRED BY BLACK & DECKER IN 1989 HE SERVED AS CHAIRMAN OF BLACK & DECKER UNTIL FEBRUARY 1990 9307160164 930716 BEVERAGE MAKERS TO SHOW GAINS IN QUARTERLY NET BEER SALES WERE STEADY INDUSTRY ANALYSTS SAY SOFT DRINKS INCREASED BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL BEVERAGE COMPANIES ARE EXPECTED TO POST HIGHER SECONDQUARTER EARNINGS WITH SOFTDRINK SALES REBOUNDING FROM WEAK YEAREARLIER LEVELS AND BEER VOLUME RELATIVELY FLAT PEPSICO INC'S NET INCOME SHOULD SHOW A RISE OF AT LEAST 9 ANALYSTS SAID EARNINGS FOR A&W BRANDS INC AND FOR ANHEUSERBUSCH COS ARE EXPECTED TO REGISTER SLIGHT GAINS THE QUARTER IS THE SECOND REPORTED PERIOD FOR DR PEPPER/SEVENUP COS AND SNAPPLE BEVERAGE CO SINCE BOTH COMPANIES WENT PUBLIC EARNINGS FOR THE NEWCOMERS ARE EXPECTED TO BE STRONG COCACOLA CO BASED IN ATLANTA REPORTED YESTERDAY THAT SECONDQUARTER EARNINGS JUMPED 20 TO 678 MILLION OR 52 CENTS A SHARE FROM 565 MILLION OR 43 CENTS A SHARE A YEAR EARLIER THE PERSHARE FIGURES HAVE BEEN ADJUSTED TO REFLECT A 2FOR1 STOCK SPLIT EFFECTIVE MAY 1 1992 REVENUE INCREASED 10 TO 390 BILLION FROM 355 BILLION ANALYSTS EXPECT EARNINGS AT PEPSICO BASED IN PURCHASE NY TO INCREASE TO AT LEAST 51 CENTS A SHARE FROM 47 CENTS A YEAR EARLIER PEPSI'S DOMESTIC VOLUME IS ESTIMATED TO HAVE INCREASED 2 TO 3 PARTLY REFLECTING A DIFFICULT VOLUME COMPARISON WITH THE YEAREARLIER PERIOD MOUNTAIN DEW CONTINUED TO BE A STRONG SELLER AND CRYSTAL PEPSI AND LIPTON TEA ADDED TO PEPSI'S VOLUME RESULTS AS WELL AT PEPSI'S FRITOLAY DIVISION VOLUME IS EXPECTED TO INCREASE A STRONG 7 AS THE COMPANY GAINS MARKET SHARE AGAINST RIVALS NOTABLY BORDEN INC SAID MICHAEL BRANCA AN ANALYST WITH NATWEST SECURITIES CORP POOR WEATHER HURT POTATO CROPS HE SAID RAISING COSTS AN ESTIMATED 18 MILLION IN THE QUARTER FOR THE POTATOCHIP MAKER IN THE SECOND QUARTER PEPSI'S TACO BELL AND PIZZA HUT RESTAURANTS HAD SAMESTORE SALES GAINS OF ABOUT 5 AND 3 RESPECTIVELY ANALYSTS ESTIMATE WHILE KFC CONTINUED TO STRUGGLE WITH SAMESTORE SALES EXPECTED TO FALL ABOUT 4 IN WHITE PLAINS NY A&W BRANDS WHICH IS FEELING INCREASED HEAT AS COKE AND PEPSI PAY MORE ATTENTION TO THEIR NONCOLA BEVERAGES IS SEEN POSTING PERSHARE EARNINGS OF 26 CENTS UP FROM THE 24 CENTS OF A YEAR EARLIER COCACOLA ENTERPRISES INC THE COKE BOTTLER IN ATLANTA IS EXPECTED TO REPORT PERSHARE EARNINGS OF AT LEAST EIGHT CENTS UP FROM THE SEVEN CENTS OF THE 1992 SECOND QUARTER DR PEPPER/SEVEN UP OF DALLAS IS EXPECTED TO REPORT EARNINGS OF ABOUT 26 CENTS A SHARE COMPARED WITH A PROFORMA 21 CENTS A SHARE IN THE YEAREARLIER QUARTER SNAPPLE A MAJOR PLAYER IN THE PREPARED OR READYTODRINK TEA MARKET SHOULD REPORT PERSHARE NET OF ABOUT 19 CENTS TO 20 CENTS COMPARED WITH NINE CENTS ON A PROFORMA BASIS A YEAR EARLIER FOR ANHEUSERBUSCH ST LOUIS PERSHARE NET IS EXPECTED TO INCREASE TO AT LEAST 111 FROM 106 A YEAR EARLIER JOSEPH DOYLE AN ANALYST OF SMITH BARNEY SAID THE COMPANY CONTINUES TO FEEL THE EFFECTS OF BEER DRINKERS' TRADING DOWN TO LOWERPRICED BEERS HE ALSO NOTED THAT IN THE BEER BUSINESS DISCOUNTING WAS WIDER AND DEEPER IN THE QUARTER THAN IN THE YEAREARLIER PERIOD 9307160163 930716 RESEARCH POINTS TOWARD A GAY' GENE BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS REPORTED NEW EVIDENCE OF A GENETIC PREDISPOSITION TO MALE HOMOSEXUALITY THEREBY RAISING QUESTIONS OVER HOW THE DISCOVERY OF A GAY GENE MIGHT BE USED OR MISUSED BY SOCIETY THE EVIDENCE WAS REPORTED BY A TEAM OF SCIENTISTS AT THE FEDERAL NATIONAL CANCER INSTITUTE WHO CARRIED OUT GENETIC STUDIES OF FAMILIES WITH TWO OR MORE HOMOSEXUAL MALES AND OF PAIRS OF HOMOSEXUAL BROTHERS THE SCIENTISTS SAID THEIR RESEARCH INDICATED THERE MAY BE AT LEAST ONE GENE THAT IS INHERITED BY A SON FROM HIS MOTHER THAT HELPS DETERMINE WHETHER THE SON IS PREDISPOSED TO BE HETEROSEXUAL OR HOMOSEXUAL PRESUMABLY A COMMON VERSION OF THE GENE INCREASES THE LIKELIHOOD THAT THE SON WILL BE HETEROSEXUAL WHILE A LESS COMMON VERSION PREDISPOSES HIM TO A HOMOSEXUAL ORIENTATION THE REPORT LEFT MANY QUESTIONS UNANSWERED AND SCIENTISTS CAUTION AGAINST DRAWING PREMATURE CONCLUSIONS THIS IS MOST INTERESTING BUT IT IS A VERY TENTATIVE SORT OF THING SAYS MOLECULAR GENETICIST ERIC LANDER AT THE WHITEHEAD INSTITUTE IN CAMBRIDGE MASS HE ADDS THAT THE REPORTED RESEARCH IS ONLY AN INVITATION TO BEGIN EXPERIMENTS TO CONFIRM IT DR LANDER ADDS PEOPLE PROBABLY WILL LEAP TO CONCLUSIONS THEY SHOULDN'T LEAP TO NOTING THAT THE STUDY INVOLVED A CAREFULLY SELECTED GROUP NO INFERENCES CAN BE DRAWN ABOUT THE GENERAL HOMOSEXUAL POPULATION SINCE THERE'S NO WAY TO KNOW WHETHER THE RESEARCH SUBJECTS REPRESENT 1 OR 99 OF THE GAY MALE POPULATION HE SAYS THE SUPPOSED GENE HASN'T YET BEEN ISOLATED AND IT ISN'T KNOWN HOW IT MIGHT WORK TO INFLUENCE SEXUAL ORIENTATION THE RESEARCH SHED NO LIGHT ON FEMALE HOMOSEXUALITY AND DIDN'T INVOLVE MEN OR WOMEN WHO ARE BISEXUALLY ORIENTED IF PAST EXPERIENCE WITH THE GENETICS OF HUMAN BEHAVIORS IS ANY GUIDE INHERITANCE OF THE MYSTERIOUS GENE WOULDN'T IN AND OF ITSELF CAUSE A MAN TO BE HOMOSEXUAL INSTEAD HE SIMPLY WOULD BE MORE LIKELY TO BE TIPPED INTO HOMOSEXUALITY BY SOME ENVIRONMENTAL FACTOR THAN A MAN WHO INHERITED THE GENE FOR A HETEROSEXUAL ORIENTATION WHAT PROPORTION OF MEN WHO INHERIT THE GAY VERSION OF THE GENE ACTUALLY BECOME HOMOSEXUAL REMAINS A MYSTERY AS DO THE ENVIRONMENTAL FACTORS THAT COULD INFLUENCE A TURN INTO HOMOSEXUALITY THE POSSIBILITY THAT A GENE UNDERLIES AT LEAST SOME HOMOSEXUALITY RAISES SOCIAL AND ETHICAL ISSUES IT IS WELCOMED BY GAYRIGHTS ADVOCATES WHO SAY SUCH FINDINGS HELP CONFIRM MANY HOMOSEXUAL MEN'S CLAIM THAT THEY WERE BORN GAY WE'RE ENCOURAGED BECAUSE SUCH STUDIES SHOW THAT HOMOSEXUALITY IS A NATURALLY OCCURRING AND A COMMON VARIATION OF HUMAN SEXUALITY SAYS ROBIN KANE A SPOKESWOMAN FOR THE NATIONAL GAY AND LESBIAN TASK FORCE INHERENT IN THE DISCOVERY OF A GENE FOR A HOMOSEXUAL TENDENCY IF THE FINDING IS CONFIRMED WOULD BE THE ABILITY TO TEST A MAN AN INFANT OR EVEN A FETUS FOR THE GENE THE POSSIBILITY OF SUCH A TEST RAISES QUESTIONS OF PRENATAL TESTING AND ABORTION SAYS GENETICIST JONATHAN BECKWITH OF THE HARVARD MEDICAL SCHOOL IN BOSTON A LOT OF YOUNG COUPLES WOULD NOT BE HAPPY TO BEAR A CHILD WHO MIGHT BECOME HOMOSEXUAL SUCH COUPLES AS WELL AS THEIR PHYSICIANS MIGHT BE WILLING TO USE SUCH A TEST IN EARLY PREGNANCY AND UNDERGO AN ABORTION IF IT SHOWED THE CHILD MIGHT HAVE A HOMOSEXUAL PREDISPOSITION HE SUGGESTS SUCH A GENETIC TEST COULD BE USED BY ANYBODY WITH STRONG MORAL ANTIHOMOSEXUAL FEELINGS SAYS NEW YORK UNIVERSITY SOCIOLOGIST DOROTHY NELKIN COAUTHOR OF DANGEROUS DIAGNOSTICS A BOOK ON GENETIC TESTING IT COULD BE USED TO ABORT PERFECTLY HEALTHY PEOPLE AND IT COULD BE USED BY THE MILITARY AND BY EMPLOYERS TO DISCRIMINATE AGAINST PEOPLE WITH THE GENE SHE SAYS THOSE WHO LOOK ON HOMOSEXUALITY AS IMMORAL MAY ALSO USE THE DISCOVERY OF A GAY GENE TO ARGUE THAT MALE HOMOSEXUALITY IS A GENETIC DISEASE LIKE HEMOPHILIA THAT SHOULD BE TREATED POSSIBLY BY THE NEW TECHNIQUES OF GENE THERAPY IN CALIFORNIA MEDICAL GENETICIST PAUL BILLINGS OF THE STANFORD MEDICAL SCHOOL AND THE PALO ALTO CALIF VETERANS ADMINISTRATION HOSPITAL SAYS IT'S WORRISOME THAT A FEDERALLY FUNDED LABORATORY IS CONDUCTING RESEARCH ON A PREDISPOSITION TO HOMOSEXUALITY AT A TIME WHEN THE MILITARY IS EXCLUDING PEOPLE ON THE BASIS OF THEIR HOMOSEXUALITY HE SAYS THAT IF A GENETIC TEST WERE AVAILABLE THE MILITARY WOULDN'T HAVE TO ASK PEOPLE IF THEY WERE HOMOSEXUAL THEY COULD JUST DO A BLOOD TEST EMPLOYERS AND INSURANCE COMPANIES COULD ARGUE THAT THEY NEED TO TEST EMPLOYEES FOR HOMOSEXUAL PREDISPOSITION BECAUSE MALE HOMOSEXUALITY IS A RISK FACTOR FOR AIDS AND THEY HAVE TO PROTECT THEIR LIFEINSURANCE AND HEALTHINSURANCE PLANS FROM AN INORDINATE NUMBER OF PEOPLE WITH AIDS THE SCIENTISTS WHO MADE THE DISCOVERY HINTED IN THEIR FORMAL REPORT THAT THEY WERE AWARE OF SUCH POTENTIAL CONTROVERSIES REFERRING TO MALE HOMOSEXUALITY AS A NORMAL VARIATION IN HUMAN BEHAVIOR THEY SAID WE BELIEVE THAT IT WOULD BE FUNDAMENTALLY UNETHICAL TO USE SUCH INFORMATION TO TRY TO ASSESS OR ALTER A PERSON'S CURRENT OR FUTURE SEXUAL ORIENTATION EITHER HETEROSEXUAL OR HOMOSEXUAL OR OTHER NORMAL ATTRIBUTES OF HUMAN BEHAVIOR THE DISCOVERY WAS REPORTED IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE BY A FIVEPERSON TEAM FROM THE CANCER INSTITUTE BETHESDA MD MEMBERS OF THE RESEARCH TEAM ALL FROM THE INSTITUTE'S BIOCHEMISTRY LABORATORY WERE DEAN H HAMER STELLA HU VICTORIA L MAGNUSON NAN HU AND ANGELA ML PATTATUCCI IT ISN'T THE FIRST STUDY TO SUGGEST A GENETIC OR BIOLOGICAL BASIS OF HOMOSEXUALITY PREVIOUSLY SCIENTISTS HAVE REPORTED FINDING ANATOMICAL DIFFERENCES BETWEEN THE BRAINS OF HOMOSEXUAL AND HETEROSEXUAL MEN AND A STUDY OF TWINS SUGGESTED THAT GAY TWINS MIGHT HAVE A COMMON GENETIC UNDERPINNING TO THEIR HOMOSEXUALITY IN THE NEW REPORT RESEARCHERS DESCRIBED WHAT ESSENTIALLY WERE TWO DIFFERENT STUDIES THAT THEY SAID REVEALED THE PROBABLE EXISTENCE OF A GENE FOR MEN'S SEXUAL ORIENTATION ONE STUDY UNCOVERED EVIDENCE THAT THE GENE IS PASSED FROM MOTHER TO SON IN THIS STUDY THE RESEARCHERS CONSTRUCTED PEDIGREES OF 76 HOMOSEXUAL MEN DETERMINING THE SEXUAL ORIENTATION OF THEIR BROTHERS FATHERS SONS UNCLES AND MALE COUSINS THEY FOUND THAT THE PREVALENCE OF HOMOSEXUAL MALES ON THE MOTHER'S SIDE OF EACH FAMILY WAS GREATER THAN IN THE GENERAL POPULATION AND WAS HIGHER THAN ON THE FATHER'S SIDE OF THE FAMILY THEY FOUND FOR INSTANCE THAT 135 OF THE GAY MEN'S BROTHERS WERE ALSO HOMOSEXUAL OR ALMOST SEVEN TIMES THE RESEARCHERS' ESTIMATE OF A 2 PROPORTION OF HOMOSEXUAL MALES IN THE GENERAL POPULATION THEY ALSO FOUND THAT 73 OF THE MOTHERS' BROTHERS AND 77 OF THE MALE COUSINS ON THE MOTHERS' SIDE WERE HOMOSEXUAL BECAUSE UNCLES AND COUSINS SHARE INHERITED INFORMATION WITH THE 76 GAY MEN BUT ARE RAISED IN DIFFERENT HOUSEHOLDS BY DIFFERENT PARENTS THIS OBSERVATION FAVORED AN INTERPRETATION BASED ON GENETICS RATHER THAN THE REARING ENVIRONMENT THE RESEARCH TEAM EXPLAINED BECAUSE THE SUPPOSED GENE AFFECTED MALES LARGELY ON THE MOTHER'S SIDE SUGGESTED THAT THE GENE MAY BE ON THE X CHROMOSOME ONE OF THE 46 MICROSCOPIC CHROMOSOMES THAT CONTAIN ALL HUMAN GENES VARIATIONS IN THE X CHROMOSOME WILL BE MANIFEST ONLY IN MALES BECAUSE THEY HAVE ONLY ONE COPY OF THIS PARTICULAR CHROMOSOME AND IT IS INHERITED ONLY FROM THE MOTHER MALES INHERIT A COPY OF THE TINY Y CHROMOSOME FROM THE FATHER FEMALES INHERIT TWO COPIES OF THE X CHROMOSOME AND A VARIATION IN ONE COPY WILL BE OFFSET BY THE OTHER COPY IN THE SECOND PART OF THEIR STUDY THE RESEARCHERS FOUND GENETIC MARKERS HINTING THAT THE SUPPOSED GENE IS IN FACT ON THE X CHROMOSOME A MARKER IS A DETECTABLE PIECE OF GENETIC DNA THAT IS SO CLOSE TO A GENE THAT IT TRAVELS WITH THE GENE AS IT IS PASSED FROM ONE GENERATION TO THE NEXT THUS A DNA MARKER IS A WAY TO TRACK A GENE THROUGH THE GENERATIONS EVEN BEFORE THE GENE ITSELF IS ISOLATED IF THE X CHROMOSOME CONTAINS A GENE THAT INCREASES THE PROBABILITY OF AN INDIVIDUAL'S BEING HOMOSEXUAL THEN GENETICALLY RELATED GAY MEN SHOULD SHARE X CHROMOSOME MARKERS CLOSE TO THAT GENE THEY EXPLAIN FORTY PAIRS OF BROTHERS FOR THIS STUDY THE SCIENTISTS TOOK BLOOD SAMPLES FROM 40 PAIRS OF HOMOSEXUAL BROTHERS AND TESTED THE BLOOD CELLS FOR THE DNA MARKERS ON THE X CHROMOSOME THE LAWS OF INHERITANCE SAY THAT TWO BROTHERS HAVE A 5050 CHANCE OF INHERITING THE SAME SINGLE COPY OF THEIR MOTHER'S TWO X CHROMOSOMES THUS IT WAS EXPECTED THAT ONLY 20 OF THE 40 PAIRS OF BROTHERS WOULD HAVE THE SAME X CHROMOSOME INSTEAD THE RESEARCHERS FOUND THAT 33 PAIRS OF BROTHERS EACH SHARED SOME OF THE SAME DNA MARKERS AND THUS HAD INHERITED THE SAME X CHROMOSOME FROM THEIR MOTHERS ALL THE SHARED DNA MARKERS WERE LOCATED IN A SECTION OF THE X CHROMOSOME KNOWN AS XQ28 THAT SECTION THE RESEARCHERS NOTED IS LARGE ENOUGH TO CONTAIN SEVERAL HUNDRED GENES THUS IT WILL REQUIRE MORE DEFINITIVE TESTING OF A LARGER NUMBER OF FAMILIES OF HOMOSEXUAL MALES BEFORE RESEARCHERS CAN HOME IN ON THE GENE FOR SEXUAL ORIENTATION ONCE A SPECIFIC GENE HAS BEEN IDENTIFIED WE CAN FIND OUT WHERE AND WHEN IT IS EXPRESSED AND HOW IT ULTIMATELY CONTRIBUTES TO THE DEVELOPMENT OF BOTH HOMOSEXUAL AND HETEROSEXUAL ORIENTATION THEY WROTE OTHER SCIENTISTS SAID IT REQUIRES FAR STRONGER EVIDENCE TO LINK GENES TO SUCH HUMAN BEHAVIOR AS SEXUALITY THAN IS NEEDED TO SHOW THAT A GENE CAUSES SUCH DISEASES AS HEMOPHILIA DR LANDER AT THE WHITEHEAD INSTITUTE SAYS GENETIC STUDIES OF OTHER BEHAVIORS SUCH AS MANIC DEPRESSION WERE INITIALLY AS STATISTICALLY SIGNIFICANT AS THIS NEW STUDY AS ADDITIONAL STUDIES WERE DONE THE SUPPOSED GENETIC LINKAGE FADED AWAY HOMOSEXUALITY IS IMPOSSIBLE TO DEFINE THERE IS AS MUCH VARIATION IN SEXUAL BEHAVIOR AMONG GAY MALES AS THERE IS AMONG HETEROSEXUAL MALES SAYS DR BILLINGS IN PALO ALTO HE SAYS THE GENE ON THE X CHROMOSOME MAY BE INVOLVED IN SOMETHING OTHER THAN SEXUAL BEHAVIOR FOR EXAMPLE IT MAY BE THAT THE SUPPOSED GENE IS ONLY ASSOCIATED WITH HOMOSEXUALITY RATHER THAN A CAUSE OF IT FREQUENCY OF HOMOSEXUALITY AMONG MALE RELATIVES OF ACKNOWLEDGED MALE HOMOSEXUALS 9307160162 930716 WHO'S NEWS PHILIP MORRIS COS PHILIP MORRIS COS NEW YORK THIS TOBACCO FOOD AND BREWING COMPANY NAMED ALAN J LACY 39 YEARS OLD VICE PRESIDENT OF ITS NEWLY FORMED FINANCIAL SERVICES AND SYSTEMS GROUP HE ALSO WAS NAMED PRESIDENT OF ITS PHILIP MORRIS CAPITAL CORP UNIT SUCCEEDING NORMAN TREISMAN 56 WHO IS LEAVING THE COMPANY MR LACY HAD BEEN SENIOR VICE PRESIDENT FINANCE AND STRATEGY FOR THE KRAFT GENERAL FOODS NORTH AMERICA UNIT BOTH POSITIONS ARE EFFECTIVE SEPT 1 9307160161 930716 WHO'S NEWS ALLWASTE INC ALLWASTE INC HOUSTON DAVID H BATCHELDER PRESIDENT OF BATCHELDER & PARTNERS INC A FINANCIAL ADVISORY FIRM IN LA JOLLA CALIF WAS NAMED A DIRECTOR BY THIS ENVIRONMENTAL SERVICES CONCERN THE 44YEAROLD MR BATCHELDER FILLS A VACANCY ON THE BOARD AND RETURNS ITS SIZE TO NINE MEMBERS ALLWASTE ALSO NAMED STEVEN B BOWLES FORMERLY A VICE PRESIDENT WITH ANCHOR GLASS CONTAINER CORP AS THE NEW PRESIDENT OF ITS ALLWASTE RECYLING UNIT 9307160160 930716 GENCOR SHARE SWAP WITH INVESTMENT ARM SIGNALS MAJOR SHAKEUP SPECIAL TO THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA'S GENCOR LTD THE SECONDLARGEST MINING HOUSE IN THE WORLD HAS ANNOUNCED A MASSIVE SHARE SWAP TOTALING ABOUT 13 BILLION RAND 3875 MILLION IN A MAJOR SHAKEUP OF ITS 20 BILLION RAND EMPIRE IN WHAT IS SEEN IN MARKET CIRCLES AS THE BEGINNING OF A HUGE UNBUNDLING EXERCISE GENCOR PROMISED EARLIER IN THE YEAR THE COMPANY SETTLED AN 862 MILLION RAND TRANSACTION WITH INVESTMENT ARM GENBEL THE SWAP INCLUDES GENBEL'S OFFSHORE AND MINING INTERESTS FOR PART OF GENCOR'S INDUSTRIAL HOLDINGS THE AGREEMENT ENTAILS THAT GENCOR WILL SWAP 89 MILLION SHARES IN OILS AND CHEMICAL COMPANY ENGEN 124 MILLION SHARES IN PAPER MANUFACTURING COMPANY SAPPI AND 51 MILLION SHARES IN GOLD MINE BEATRIX GENCOR IN TURN WILL GET 350 MILLION RAND OF SHARES IN PLATINUM MINING COMPANY IMPALA COAL PRODUCER TRANSNATAL FERROCHROME COMPANY SAMANCOR AND GOLD MINES KINROSS AND WINKELHAAK GENCOR WILL ALSO GET ALL OF GENBEL'S OFFSHORE INTERESTS WHICH CONSIST OF SHARES IN TRANSATLANTIC HOLDINGS CASH AND MINOR GOLD EXPLORATION VENTURES IN TURKEY GENBEL WILL PASS ON A PORTION OF THE ENGEN AND SAPPI SHARES TO MAJOR GENCOR SHAREHOLDER SANKORP FOR STAKES IN AMALGAMATED BANKS OF SOUTHERN AFRICA MURRAY & ROBERTS MALBAK AND MERCEDES INFORMATION TECHNOLOGY PLUS 50 MILLION RAND IN CASH EARLIER IN THE YEAR GENCOR SAID THE COMPANY AIMS TO USE UNBUNDLING TO REALIZE THE FULL VALUE OF ITS SPREAD OF ASSETS GENBEL'S SHAREHOLDERS WILL BE ASKED TO RATIFY THE DEALS AT A MEETING TODAY GENBEL'S CHAIRMAN TOM DE BEER SAID THE TRANSACTIONS HELP TO ACCELERATE THE TRANSFORMATION OF GENBEL FROM A PASSIVE INVESTMENT TO AN ACTIVELY MANAGED AND GROWTH ORIENTED COMPANY THE DEALS GUARANTEE THE FUTURE OPERATING INDEPENDENCE OF GENBEL AND WILL ALLOW THE COMPANY TO PLAY A MEANINGFUL ROLE AS A FINANCING PARTNER TO GENCOR AND SANKORP MR DE BEER SAID 9307160159 930716 WHO'S NEWS PARKER HANNIFIN CORP PARKER HANNIFIN CORP CLEVELAND TIMOTHY K PISTELL 46 YEARS OLD CORPORATE DIRECTOR OF BUSINESS PLANNING WAS NAMED TREASURER OF THIS PRODUCER OF MOTIONCONTROL COMPONENTS AND SYSTEMS HE SUCCEEDS WALLACE C YOUNG 65 WHO IS RETIRING AFTER ABOUT 24 YEARS WITH THE COMPANY AS TREASURER MR PISTELL WILL BE RESPONSIBLE FOR CASH DEBT AND RISK MANAGEMENT INVESTOR CONTRACTS AND EMPLOYEE BENEFIT FUND MANAGEMENT HE WILL CONTINUE TO MANAGE BUSINESS PLANNING 9307160158 930716 SALOMON ESTABLISHES SINGAPORE OPERATION FOR FOREIGN EXCHANGE SINGAPORE SALOMON BROTHERS INC SAID IT SET UP A FOREIGNEXCHANGE DEALING ROOM HERE RESPONSIBLE FOR ALL OF THE FIRM'S CURRENCYTRADING ACTIVITIES IN THE ASIANPACIFIC REGION OUTSIDE JAPAN THE NEW SINGAPORE TRADING OPERATION IS PART OF A BROADER EFFORT BY THE US INVESTMENT BANK TO EXPAND ITS ASIAN OPERATIONS OUTSIDE JAPAN WHERE THE FIRM IS ALREADY WELL ESTABLISHED SAID HANS U HUFSCHMID A MANAGING DIRECTOR AND HEAD OF SALOMON'S GLOBAL FOREIGNEXCHANGE ACTIVITIES SALOMON'S EQUITIES ARM ALSO PLANS TO ADD STAFF IN SINGAPORE INCLUDING ANALYSTS AND CORPORATE FINANCE PROFESSIONALS WHO WILL FORM AN ASIAN EMERGING MARKETS GROUP SALOMON BROTHERS IS A UNIT OF SALOMON INC THE INCREASING SIZE AND SOPHISTICATION OF ASIAN FINANCIAL MARKETS AND THE LURE OF UNDERWRITING FEES FROM AN EXPECTED BOOM IN OFFERINGS OF STOCKS AND OTHER SECURITIES HAVE PROMPTED MANY US AND EUROPEAN INVESTMENT BANKS TO DEVOTE MORE RESOURCES TO EAST ASIA AND SOUTHEAST ASIA SALOMON'S FOREIGNEXCHANGE OPERATION IN TOKYO REMAINS RESPONSIBLE FOR DEALING WITH JAPANESE CUSTOMERS MR HUFSCHMID SAID HOWEVER SALOMON HAS SHIFTED TRADING FOR ITS OWN ACCOUNT IN ASIAN TIME ZONES FROM TOKYO TO SINGAPORE TRADERS IN SALOMON'S NEW YORK AND LONDON OFFICES ALSO TRADE FOR THE FIRM'S OWN ACCOUNT THE SINGAPORE OFFICE WILL HOUSE SIX OF THE 30 PROFESSIOALS IN SALOMON'S GLOBAL FOREIGNEXCHANGE GROUP MR HUFSCHMID SAID THE US INVESTMENT BANK MOVED TRADERS FROM ITS TOKYO LONDON AND NEW YORK FOREIGNEXCHANGE CENTERS TO JOIN EXISTING SALES STAFF IN SINGAPORE SALOMON ALREADY HAS A STRONG ASIAN CUSTOMER BASE IN FOREIGNEXCHANGE TRADING MR HUFSCHMID SAID AT A BRIEFING PAUL BREWER A MANAGING DIRECTOR AND HEAD OF SALOMON'S LONDON FOREIGNEXCHANGE OPERATIONS SAID ASIAN CLIENTS ACCOUNT FOR ABOUT 30 OF THE FIRM'S CURRENCY TRADING ON BEHALF OF OUTSIDE CUSTOMERS THE DECISION BY SALOMON TO START TRADING CURRENCIES FROM SINGAPORE ALSO REFLECTS THE COMPANY'S DECISION TWO YEARS AGO TO BUILD UP ITS FOREIGNEXCHANGE ACTIVITIES HOWEVER UNLIKE COMMERCIAL BANKS SALOMON ISN'T CHASING CUSTOMERS SUCH AS IMPORTERS WHO NEED TO BUY OR SELL FOREIGN CURRENCIES AS PART OF THEIR DAILY BUSINESS ACTIVITIES 9307160157 930716 WESTINGHOUSE GETS ORDERS PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT RECEIVED TWO ORDERS TOTALING 27 MILLION FOR STEAM TURBINE ROTORS AND RELATED EQUIPMENT FROM NEW ENGLAND POWER CO AND CLEVELAND ELECTRIC ILLUMINATING CO A UNIT OF CENTERIOR ENERGY CORP 9307160156 930716 DIEBOLD APPOINTS FIVE TO EXECUTIVE POSITIONS CANTON OHIO FIVE TOP DIEBOLD INC EXECUTIVES WERE APPOINTED TO NEW POSITIONS AND WILL BECOME PART OF A NEW EXECUTIVE TEAM OVERSEEING DAYTODAY DECISION MAKING ROBERT W MAHONEY 56 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL BECOME DIEBOLD PRESIDENT HE SUCCEEDS ROBERT P BARONE 55 WHO BECOMES VICE CHAIRMAN A POSITION VACANT AT THE MAKER OF AUTOMATED TELLER MACHINES SECURITY SYSTEMS AND FINANCIAL SOFTWARE AND EQUIPMENT SINCE 1981 THREE MEN WILL BECOME EXECUTIVE VICE PRESIDENTS TITLES NOT HELD SINCE 1980 AND CONTINUE IN THEIR PREVIOUS ROLES GERALD F MORRIS 49 WHO REMAINS AS CHIEF FINANCIAL OFFICER WILLIAM T BLAIR 59 WHO WILL CONTINUE TO OVERSEE MARKETING FOR DIEBOLD'S US SALES AND GREGG A SEARLE 44 WHO REMAINS RESPONSIBLE FOR THE COMPANY'S INTERNATIONAL SALES ALL FIVE MEN WILL BECOME PART OF THE NEW EXECUTIVE TEAM HEADED BY MR MAHONEY 9307160155 930716 AD AGENCIES TO POST MODEST EARNINGS GAINS TIGHTFISTED CLIENTS PLUS COSTCUTTING EXPECTED TO DAMP PROFITABILITY BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONTINUING TO CUT COSTS WHILE THEIR CLIENTS STAY TIGHTFISTED ADVERTISING AGENCIES ARE EXPECTED TO POST UNSPECTACULAR EARNINGS INCREASES FOR THE SECOND QUARTER CLIENTS JUST AREN'T SPENDING SAYS ALISON FOLINO INDUSTRY ANALYST WITH SMITH BARNEY SHEARSON AND IF THEY ARE SPENDING ON NEW BRANDS OR NEW PRODUCTS THEY'RE TAKING IT FROM SOMEWHERE ELSE ADVERTISING ACTIVITY THAT HAD BEEN EXPECTED EARLIER THIS YEAR HAS FAILED TO MATERIALIZE ANALYSTS SAY AS A RESULT AGENCIES ARE REDUCED TO SQUEEZING OUT MOST OF THEIR EARNINGS INCREASES BY CUTTING COSTS ALONE INTERPUBLIC GROUP OF COS WHICH OWNS SUCH ADVERTISING NETWORKS AS MCCANNERICKSON LINTAS AND LOWE GROUP IS EXPECTED TO REPORT SECONDQUARTER NET INCOME OF 65 CENTS A SHARE UP 12 FROM THE YEAREARLIER 58 CENTS ANALYSTS AGREED DEAN WITTER'S JAMES DOUGHERTY SAYS INTERPUBLIC'S REVENUE SHOULD BE UP ONLY SLIGHTLY WITH FEW IF ANY INCREASES IN SPENDING FROM ESTABLISHED ACCOUNTS OMNICOM GROUP WHICH OWNS AGENCIES INCLUDING THE BBDO AND DDB NEEDHAM NETWORKS IS EXPECTED TO POST NET INCOME GROWTH OF BETWEEN 9 AND 12 OVER THE 72 CENTS A SHARE REPORTED IN THE 1992 SECOND QUARTER ALAN GOTTESMAN AN ANALYST WITH PAINEWEBBER SEES A 9 INCREASE TO 85 CENTS A SHARE WHILE DEAN WITTER'S MR DOUGHERTY SEES NET INCOME UP 12 AT 87 CENTS A SHARE BOTH FORECASTS ARE ON A PRIMARY BASIS SOME ANALYSTS FORECAST OMNICOM'S RESULTS ON A FULLY DILUTED BASIS MADISON AVENUE HAD BEEN HOPING THAT SLUGGISH SPENDING WOULD PICK UP AFTER RECENT ATTENTION TO THE VALUE OF BRANDS AND OF ADVERTISING HIGHLIGHTED IN THE WAKE OF PHILIP MORRIS COS'S DECISION TO DISCOUNT MARLBORO CIGARETTES MADISON AVENUE EXECUTIVES SOUNDED AN ALARM THAT EVEN THE MOST ESTABLISHED BRANDS HAD BECOME VULNERABLE TO LOWERPRICED COMPETITORS AND SHOULD BE ADVERTISED MORE INDEED SOME ANALYSTS SEE THE START OF A TREND TOWARD INCREASED SPENDING THERE'S A SMALL BUT PERCEPTIBLE SHIFT FROM BUYITBECAUSEIT'SCHEAP' TO BUYITBECAUSEIT'SGOOD' SAYS MR GOTTESMAN OF PAINEWEBBER THAT WILL HELP AGENCIES TO MAKE PEOPLE FEEL GOOD ABOUT YOUR PRODUCT YOU HAVE TO ADVERTISE TWO AGENCIES THAT HAVEN'T USUALLY LED THE LIST OF AGENCY PERFORMERS ARE EXPECTED TO OUTPERFORM THE FIELD IN REVENUE GROWTH FOOTE CONE & BELDING COMMUNICATIONS OF CHICAGO AND WPP GROUP OF LONDON ARE EXPECTED TO BENEFIT FROM STRONG BILLINGS FOOTE CONE IS EXPECTED TO POST EARNINGS GROWTH OF 11 TO 14 OVER THE YEAREARLIER 71 CENTS A SHARE SMITH BARNEY'S MS FOLINO SEES GROWTH OF NO MORE THAN 11 TO 79 CENTS MR DOUGHERTY LOOKS FOR 14 GROWTH TO 81 CENTS THE BRITISH AGENCY HOLDING COMPANIES ENCUMBERED BY MASSIVE BANK DEBT HAVE BEEN PARTICULARLY MOTIVATED TO REDUCE OVERHEAD AND THEIR EFFORTS APPEAR TO BE PAYING OFF ANALYSTS SAID WPP GROUP WHOSE SHARES TRADE IN THE US AS AMERICAN DEPOSITARY RECEIPTS IS EXPECTED TO POST EARNINGS OF ABOUT FOUR CENTS PER ADR FOR THE FIRST HALF COMPARED WITH A LOSS OF 17 CENTS IN THE YEAREARLIER PERIOD ACCORDING TO MR DOUGHERTY TWO BRITISH SHARES EQUAL ONE ADR WPP OWNS AGENCIES INCLUDING J WALTER THOMPSON OGILVY & MATHER AND SCALI MCCABE SLOVES THE BRITISH COMPANIES REPORT ON A SEMIANNUAL NOT QUARTERLY BASIS 9307160154 930716 WHO'S NEWS KTEL INTERNATIONAL INC KTEL INTERNATIONAL INC PLYMOUTH MINN MICKEY ELFENBEIN 45YEAROLD PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING THE COMPANY'S FOUNDER PHILIP KIVES 63 WHO CONTINUES AS CHAIRMAN OF THIS DISTRIBUTOR OF PACKAGED MUSIC VIDEO AND CONSUMER PRODUCTS 9307160153 930716 INTERNATIONAL WORLD ECONOMY US COMPETITIVENESS WINS NEW RESPECT FROM LEADING PLAYERS IN GLOBAL MARKET BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NESTLED NEXT TO EXPORTING POWERHOUSE GERMANY AND FIGHTING FIERCELY TO KEEP JAPANESE COMPETITORS AT BAY WHERE DOES FRENCH INDUSTRY SEE SOME OF ITS MOST POTENT COMPETITION ARISING IN THE UNITED STATES I'M CONVINCED AMERICAN CORPORATIONS HAVE BECOME EXTREMELY COMPETITIVE WORLDWIDE SAYS FRANCOIS PERIGOT A FORMER UNILEVER EXECUTIVE WHO IS PRESIDENT OF THE NATIONAL COUNCIL OF FRENCH EMPLOYERS FRANCE'S LEADING BUSINESS FEDERATION AFTER A RECENT US VISIT HE SAYS HIS MAIN MESSAGE FOR FRENCH INDUSTRY IS SIMPLE GO TO WORK BECAUSE YOU'RE GOING TO FIND TOUGH US COMPETITORS IN ALL GLOBAL MARKETS YOU SEE THEM EVERYWHERE BECAUSE US COMPANIES HAVE DEMONSTRATED A REMARKABLE CAPACITY TO TAKE ADVANTAGE OF THEIR ECONOMIC PROBLEMS AND ADJUST TO NEW CONDITIONS THANKS TO A FANTASTIC FLEXIBILITY THAT EUROPEANS CAN ONLY ENVY FOR EXAMPLE HE SAYS US COMPANIES CAN RADICALLY REVISE WORK RULES AND PRODUCTION METHODS FOR PRODUCTIVITY GAINS THIS IS SOMETHING WE EUROPEANS MUST REFLECT UPON HE CONCLUDES IT ISN'T JUST FRENCH FLATTERY FOR AN AMERICAN AUDIENCE THOUGH HE SAYS IT HAS BEEN NOTICEABLE FOR SOME TIME MARTIN HUFNER CHIEF ECONOMIST OF BAYERISCHE VEREINSBANK OF MUNICH AGREES AMERICAN COMPETITORS ARE BECOMING STRONGER AND STRONGER IN WORLD MARKETS FOR ONE THING HE FINDS AMERICAN BUSINESSMEN HAVE BECOME MORE INTERNATIONALMINDED NOT ALWAYS A COMMON TRAIT IN PAST YEARS MORE AND MORE GERMAN COMPANIES ARE TELLING ME THIS OR THAT AMERICAN COMPANY IS NOW COMPETING AGAINST THEM MR HUFNER SAYS AND THOUGH HE'S QUICK TO CLAIM THE SAME FOR HIS OWN MEMBERS GARY CAMPKIN OF THE CONFEDERATION OF BRITISH INDUSTRY ALSO FINDS AMERICAN INDUSTRY HAS BEEN RISING TO THE COMPETITIVE CHALLENGE COMPARATIVE FIGURES ON LABOR COSTS AND PRODUCTIVITY PLUS THE DOLLAR EXCHANGE RATE ARE ALL INDICATORS GOING IN THE RIGHT DIRECTION FOR THE US HE SAYS THUS AMERICAN EXPORTERS SHOULD BENEFIT IF TWO THINGS HAPPEN AS EXPECTED IN THE NEXT FEW YEARS ONE IS AN ECONOMIC REBOUND IN MAIN MARKETS SUCH AS JAPAN AND GERMANY THE OTHER IS COMPLETION OF THE URUGUAY ROUND TRADE TALKS WHICH WILL SET NEW AND LIBERALIZED INTERNATIONAL RULES AND THE NORTH AMERICAN FREE TRADE ASSOCIATION NEGOTIATIONS WHICH SHOULD DO SOMETHING EXTRA FOR THE US CANADA AND MEXICO THERE WILL BE EVEN MORE OPPORTUNITY IF WASHINGTON CONCLUDES AMICABLY TWO SETS OF BILATERAL DISCUSSIONS TALKS WITH JAPAN AND CHINA TO GAIN GREATER ACCESS TO THOSE PROTECTED MARKETS ALL THESE WOULD MAKE IT EASIER TO TRADE BUT WITHOUT GUARANTEES THAT ANY PARTICULAR EXPORTING COMPANY OR NATION WILL PROSPER THAT'S WHERE THE COMPETITION FACTOR COMES IN AND THAT'S WHERE THE US HAS SOME SPECIAL THINGS GOING FOR IT ONE IS PRODUCTIVITY AMERICAN LABOR PRODUCTIVITY IS RISING FASTER THAN IN MOST OTHER LEADING ECONOMIES ACCORDING TO US FIGURES ITS WORKERS WERE THE WORLD'S MOST EFFICIENT IN 1991 AHEAD OF CANADA 93 OF THE US LEVEL WITH JAPAN AND MOST EUROPEANS IN THE 7080 RANGE LAST YEAR AMERICAN PRODUCTIVITY ROSE 27 ACTUAL LABOR COSTS OFFER ANOTHER COMPARATIVE ADVANTAGE THANKS TO A WEAKER DOLLAR PLUS HIGH SOCIAL WELFARE CHARGES IN EUROPE THAT CAN EQUAL CASH WAGES US STATISTICS PUT TOTAL 1992 HOURLY LABOR COSTS IN MANUFACTURING NEAR 16 IN THE US AND JAPAN BUT A DOLLAR OR MORE HIGHER IN FRANCE ITALY AND CANADA AND ALMOST 10 HIGHER IN GERMANY THESE HELP EXPLAIN WHY THE US AGAIN HAS A 45 BILLION TRADE SURPLUS IN INDUSTRIAL EQUIPMENT AS IT HAD IN 1980 BUT LOST TOTALLY DURING THE STRONG DOLLAR DAYS OF THE MID80S BUT WHAT MR PERIGOT AND OTHERS ENVY MOST IS THE FLEXIBILITY FACTOR THEY SEE AMERICAN COMPANIES ABLE TO CHANGE WORK CONDITIONS WITH RELATIVE FREEDOM NOT SO IN FRANCE WHERE MR PERIGOT FINDS RIGIDITIES IN LABOR RULES AND IN OUR MINDS INHIBITING CHANGE SO TOO IN GERMANY MR HUFNER NOTES THAT UNIONS GENERALLY BLOCK WEEKEND WORK AND OTHER EFFORTS TO IMPROVE PRODUCTIVITY ONE CAUTION NO ONE SUGGESTS THE JAPANESE ARE LOSING THEIR EDGE MR HUFNER SEES THEM MOVING DEEPER INTO NEW EUROPEAN MARKETS SUCH AS MACHINE TOOLS AND CHEMICALS AND SAYS ONLY SELFRESTRAINT PERHAPS TO AVOID POLITICAL ROWS HOLDS THEM BACK IN OTHERS SO WHILE TRADE TALKS MAY GIVE US AND OTHER OUTSIDERS A FAIRER CHANCE IN JAPAN ITSELF JAPANESE RIVALS WON'T PROVIDE ANY FREE RIDES ELSEWHERE 9307160152 930716 WHO'S NEWS HALLIBURTON CO HALLIBURTON CO DALLAS CJ PETE SILAS WAS ELECTED TO THE BOARD OF THIS DIVERSIFIED ENERGY SERVICES COMPANY MR SILAS 61 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PHILLIPS PETROLEUM CO HIS MEMBERSHIP TO THE BOARD FILLS A VACANCY 9307160151 930716 A HOTEL IN NEW YORK SETS PACT ON AIDS FOR DISABLED NEW YORK INTERCONTINENTAL HOTEL HERE REACHED AN AGREEMENT WITH THE JUSTICE DEPARTMENT TO CORRECT ALLEGED VIOLATIONS OF THE AMERICANS WITH DISABILITIES ACT THE INTERCONTINENTAL WHICH IS OWNED BY SAISON GROUP OF TOKYO WILL EQUIP 35 OF ITS 691 ROOMS WITH AIDS FOR PEOPLE WHO HAVE IMPAIRED HEARING OF THOSE ROOMS 21 ALSO WILL BE MODIFIED FOR ACCESS BY PEOPLE WITH MOBILITY IMPAIRMENTS SEVEN OF THE ROOMS ARE COMPLETED THE HOTEL ALSO HAS INSTALLED RAMPS AND MODIFIED PUBLIC RESTROOMS AMONG OTHER CHANGES THE LUXURY HOTEL HAS SPENT 800000 ON THE MODIFICATIONS SO FAR AND PLANS TO SPEND A TOTAL OF ABOUT 17 MILLION FOR THE FIVEYEAR PROJECT SOME OF THE COST IS RELATED TO INSTALLING SUCH THINGS AS MARBLE AND RAILINGS THAT MATCH THE ORIGINAL MATERIALS USED IN THE 1926 BUILDING A JUSTICE DEPARTMENT LAWYER SAID THE AGENCY HAS RECEIVED 1500 COMPLAINTS RELATED TO ACCESS BY DISABLED PEOPLE IN PUBLIC BUILDINGS THE INTERCONTINENTAL SETTLEMENT IS THE FIRST BY A HOTEL THE DEPARTMENT HAS FILED TWO LAWSUITS AND IS NEGOTIATING SETTLEMENTS IN OTHER CASES THE CHANGES WERE THE RESULT OF A COMPLAINT FILED WITH THE GOVERNMENT BY NEW YORK LAWYERS FOR THE PUBLIC INTEREST ON BEHALF OF THE GROUP DISABLED IN ACTION 9307160150 930716 ENTERPRISE COPIERTONER PHONE SCAMS ARE TARGETING SMALL FIRMS SWINDLERS ARE INCREASING THEIR EFFORTS IN 3 BILLION REPLACEMENT MARKET BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL IF A FRIENDLY VOICE ON THE PHONE OFFERS YOU A SWEET DEAL ON REPLACEMENT TONER FOR THE OFFICE COPIER OR LASER PRINTER THE SMARTEST THING TO DO MAY BE TO HANG UP TONER SCAMS OR TONERPHONERS AS THEY ARE COMMONLY KNOWN HAVE LONG BEEN A FIXTURE OF THE FRAUD LANDSCAPE BUT NOW SMALL BUSINESSES REPORT AN UPSURGE IN THE NUMBER OF ATTEMPTS BY CON ARTISTS TO GOUGE THEM FOR TONER AND NOT ONLY ARE THE SWINDLERS STEPPING UP THEIR ACTIVITIES THEY ARE SHOWING MORE GALL THAN EVER OFTEN CHARGING 10 TIMES THE MARKET PRICE AND EVEN UNLEASHING BILL COLLECTORS ON BUYERS WHO WISE UP AND REFUSE TO PAY I HAVE SEEN A TREMENDOUS INCREASE IN THE NUMBER OF COMPLAINTS COMING IN OVER THE LAST SIX MONTHS SAYS MARIA KEARNS A NATIONAL SALES MANAGER WITH CANON USA INC A LAKE SUCCESS NY MAKER OF COPIERS AND TONER I THINK THE TONERPHONERS ARE TAKING ADVANTAGE OF THE BAD ECONOMIC CLIMATE AND PEOPLE SEARCHING FOR BARGAINS CANON USA IS A UNIT OF JAPAN'S CANON INC OTHER MAJOR COPIER CONCERNS INCLUDING XEROX CORP RICOH CORP AND MINOLTA CORP ALSO SAY THERE HAS BEEN AN INCREASE IN THE NUMBER OF PEOPLE ATTEMPING TO MAKE ILLICIT GAINS FROM THE 3 BILLION TONER MARKET THE NATIONAL OFFICE MACHINE DEALERS ASSOCIATION A TRADE GROUP BASED IN KANSAS CITY MO SAYS IT IS RECEIVING ABOUT 30 TO 40 CALLS A WEEK FROM BUSINESSES CHEATED BY TONERPHONERS AN INCREASE OF ABOUT 20 FROM LAST YEAR RICOH AND MINOLTA ARE THE RESPECTIVE UNITS OF JAPAN'S RICOH CO AND MINOLTA CAMERA CO WE SAW ONE BOOM IN TONER SCAMS IN THE '80S WITH THE INCREASED USE OF OFFICE COPIERS SAYS KATY DUNN AN ASSOCIATION SPOKESWOMAN NOW WE'RE SEEING A SECOND BOOM BECAUSE OF THE POPULARITY OF LASER PRINTERS ACCORDING TO THE FEDERAL TRADE COMMISSION AND THE US POSTAL INSPECTION SERVICE TONERPHONERS TYPICALLY TARGET SMALL BUSINESSES AND CHARITIES THEIR METHODS ARE SIMPLE ONE WEEK THEY WILL CALL A BUSINESS AND LEARN COPIER OR LASER PRINTER SERIAL NUMBERS BY MISREPRESENTING THEMSELVES AS REPRESENTATIVES OF MAJOR COMPANIES UPDATING THEIR COMPUTER FILES A FEW WEEKS LATER THEY WILL PLACE ANOTHER CALL TO THE SAME BUSINESS THIS TIME LEADING THE BUYER TO BELIEVE THAT THEY ARE CERTIFIED TONER DISTRIBUTORS FOR BIG COMPANIES THE PROOF THEY KNOW THE SERIAL NUMBER OF THE TARGET COMPANY'S COPIER OR PRINTER THEN COMES THE STING AS THE BUYER IS TALKED INTO PURCHASING A SUPPLY OF TONER OFFERED FOR A ONCEINALIFETIME LOW PRICE IN REALITY THE PRICE IS SHARPLY INFLATED MARILYN JAYNE THE OFFICE MANAGER FOR WARWICK DODGE CORP A WARWICK NY CAR DEALERSHIP SAYS SHE WAS DUPED BY A TONERPHONER LATE LAST YEAR THEY LED ME TO BELIEVE THEY REPRESENTED XEROX SAYS MS JAYNE USUALLY WE RECOGNIZE PEOPLE TRYING TO DO THIS BUT SOMEHOW THESE GUYS GOT THROUGH MS JAYNE SAYS MAIN DISTRIBUTION CENTER AN ANAHEIM CALIF COMPANY THAT HANDLES ITS BILLING THROUGH ANOTHER CONCERN CALLED SWIFT SHIPPERS SOLD HER THREE CARTONS OF TONER FOR 1373 THAT SHE SAYS REPRESENTED AN OVERCHARGE OF 915 SHE SAYS SHE RETURNED THE UNUSED PORTION OF THE TONER TO MAIN AND DEMANDED A REFUND BUT THE MONEY NEVER CAME OTHER SMALL BUSINESSES ALSO CLAIM TO HAVE BEEN SWINDLED BY MAIN ACCORDING TO CALL FOR ACTION INC A CONSUMER GROUP IN WASHINGTON MAIN DIDN'T RETURN REPEATED PHONE CALLS LAURENCE MERRITT THE COMPANY'S ATTORNEY SAYS HE REPRESENTS ABOUT 20 TONER CONCERNS AND NONE OF THEM MISREPRESENT THEMSELVES TO BUYERS THEY MAY CHARGE MORE THAN XEROX PER SE BUT THE PRICE IS QUOTED HE ADDS THE FIRST ASSEMBLY CHURCH OF GOD IN BRIGHTON ILL SAYS DISTRICT SERVICE CENTER A LOS ANGELES TONER COMPANY SOLD IT WATEREDDOWN TONER LAST YEAR FOR 336 A MARKUP OF ABOUT 240 THEY CALLED SAYING THEY REPRESENTED XEROX AND SEEMED TO KNOW ABOUT OUR COPIER SAYS TIMOTHY DAVIS FIRST ASSEMBLY'S PASTOR I HAD ONLY BEEN PASTOR FOR ABOUT FIVE MONTHS AND DIDN'T REALLY KNOW ANY BETTER MR DAVIS SAYS HE DEMANDED A REFUND FROM DISTRICT BUT HASN'T RECEIVED IT DISTRICT'S OFFICE MANAGER WHO IDENTIFIES HIMSELF AS BOB NOBLE SAYS HE ISN'T FAMILIAR WITH TONER COMPLAINTS FROM ANY OF HIS CUSTOMERS THE COMPANY DECLINED TO COMMENT FURTHER HEWLETTPACKARD CO A LEADING MANUFACTURER OF LASER PRINTERS FILED A LAWSUIT IN MAY IN THE US DISTRICT COURT FOR CENTRAL CALIFORNIA AGAINST SUPREME OFFICE PRODUCTS A SHERMAN OAKS CALIF CONCERN THAT SELLS REFILLED TONER CARTRIDGES IN THE SUIT HEWLETT ALLEGES THAT SUPREME AND ITS OWNER WILLIAM TOTH FALSELY REPRESENTED TO CUSTOMERS THAT REFILLED TONER CARTRIDGES FOR LASER PRINTERS WERE UNUSED FACTORYFRESH HEWLETT PRODUCTS HEWLETT SAYS IT IS NEGOTIATING A SETTLEMENT WITH SUPREME SUPREME DECLINED TO COMMENT HEWLETT FILED TWO SIMILAR SUITS LAST YEAR AND SAYS IT IS DISTURBED BY THE UPTURN IN TONER SCAMS WE'RE DEFINITELY SEEING A LOT MORE OF THIS OUT THERE SAYS KIRSTEN WISDOM A HEWLETTPACKARD SPOKESWOMAN IT'S A STANDARD PRODUCT THAT EVERYBODY WANTS IT'S LIKE COUNTERFEITING 20 BILLS CALL FOR ACTION SAYS TONERPHONERS MANY OF WHICH ARE LOCATED IN SOUTHERN CALIFORNIA ARE BECOMING MORE AMBITIOUS THE GROUP SAYS TONERPHONERS HAVE NAILED LARGE CORPORATIONS FOR SUMS AS HIGH AS 60000 DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL SAYS IT HAS BEEN VICTIMIZED IN THE PAST MOST SMALL BUSINESSES WILL HAVE TO RELY ON THEIR WITS TO COMBAT TONERPHONERS BECAUSE LAW ENFORCEMENT OFFICIALS SAY THAT TONER FRAUD IS DIFFICULT TO PROVE THEY ALSO SAY THE SHEER NUMBER OF TONERPHONERS MAKES IT ALMOST IMPOSSIBLE TO ELIMINATE THERE'S NOT JUST ONE GUY PULLING ALL OF THE STRINGS WITH THESE SCAMS SAYS JOHN BRUGGER A US POSTAL INSPECTION SERVICE SPOKESMAN TONER FRAUD AND TELEMARKETING FRAUD GENERALLY IS A SMALL BUSINESS UNTO ITSELF AND YOU SIMPLY CAN'T STOMP ALL OF THEM OUT 9307160149 930716 IT MAY PROVE DIFFICULT TO TARGET FANS WHO COME TO EARN DEGREES BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL IT'S ONE TWO THREE STRIKES YOU'RE A PHD AT THE OLD BALLGAME TO RESEARCH HIS MARKETING DISSERTATION DOUGLAS HOLT A 31YEAROLD ASSISTANT PROFESSOR AT PENNSYLVANIA STATE UNIVERSITY SPENT THE SUMMERS OF 1990 AND 1991 AMONG THE BLEACHER BUMS THOSE IRREPRESSIBLE CHICAGO CUBS FANS WHO HAVE BECOME AS SYMBOLIC OF WRIGLEY FIELD AS ITS IVY HE OBSERVED THEM AS THEY REPEATED SUCH SIGNATURE ANTICS AS THROWING BACK THE OPPOSING TEAM'S HOMERUN BALLS AND REFUSING TO DO THE WAVE THE RESULT IS FORMS OF CONSUMING A THEORYBUILDING CASE STUDY OF BASEBALL SPECTATING THE IDEA SAYS DR HOLT WHO GOT HIS DOCTORATE FROM NORTHWESTERN UNIVERSITY THIS YEAR WAS TO SHOW THAT PEOPLE CONSUME BASEBALL IN MANY WAYS BRIEFLY PUT THE 250PAGE PAPER FOUND THAT PROFESSIONAL BASEBALL EXPECTS ALL FANS TO CONSUME THE SPORT IN THE SAME WAY AS PLACID SPECTATORS INSTEAD DR HOLT SAYS FANS TAILOR THE GAME TO THEIR OWN PARTICIPATORY NEEDS THUS THE HOLT THESIS CONCLUDES BASEBALL OWNERS MAY BE IGNORING A PRIMARY MARKETING CONCEPT TARGETING SEGMENTS DR HOLT SUGGESTS THAT IF BALL CLUBS DON'T FEED FANS' NEEDS TO PARTICIPATE FANS MAY DO IT THEMSELVES WITH MORE ACTIVITIES SUCH AS ROTISSERIE LEAGUE BASEBALL IN WHICH PLAYERS PORE OVER STATISTICS AND DON'T NEED TO SEE A GAME AT ALL DR HOLT CONCEDES THAT HIS THEORY DOESN'T WORK REAL WELL FOR HOW TO MARKET A CAN OF SOUP BUT HE MAINTAINS IT HAS SOME REAL DIRECT IMPLICATIONS FOR DISSECTING DIFFERENT TYPES OF CULTURAL ACTIVITIES BUT IS THE THESIS OUT IN LEFT FIELD I GUESS IF MY LIFE DEPENDED ON IT I COULD FIND THE CONNECTIONS BUT IT REALLY SOUNDS LIKE A STRETCH SAYS ROY GRACE CHAIRMAN OF GRACE & ROTHSCHILD ADVERTISING IN NEW YORK BUT MITCHELL KURZ CHIEF EXECUTIVE OF WUNDERMAN CATO JOHNSON IN NEW YORK A UNIT OF YOUNG & RUBICAM INC SUPPORTS THE THEORY IF MAJORLEAGUE BASEBALL WERE TOTALLY FOCUSED ON SATISFYING THE CUSTOMERS THERE WOULD BE MORE MARKET SEGMENTING SAYS MR KURZ WHOSE COMPANY RECENTLY ANALYZED WANING BASEBALLFAN LOYALTY BUT FOR THEIR PART THE CUBS ARE UNLIKELY TO DELVE DEEPLY INTO THE BLEACHER BRIGADE'S MOTIVES SAYS JOHN MCDONOUGH CUBS VICE PRESIDENT MARKETING AND BROADCASTING HE ADDS SOMETIMES IT'S VERY FORTHRIGHT AND VERY VISIONARY TO STAY OUT OF THE WAY 9307160148 930716 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 COCACOLA CO 150 MILLION OF SENIOR NOTES DUE JULY 15 2003 PRICED AS 6S AT 99809 TO YIELD 6026 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 32 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ILLINOIS POWER CO 200 MILLION OF FIRST MORTGAGE BONDS DUE JULY 15 2025 PRICED AS 75S AT 994 TO YIELD 755 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WEYERHAEUSER CO 250 MILLION OF DEBENTURES DUE JULY 15 2023 PRICED AS 7125S AT 9856 TO YIELD 7243 ACCORDING TO MCM CORPORATEWATCH THE BONDS WHICH ARE NONCALLABLE WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO AMERICAN BANKERS INSURANCE GROUP INC 34 MILLION COMMON SHARES PRICED AT 2725 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO BEAR STEARNS COS FOUR MILLION SHARES OF PERPETUAL CUMULATIVE PREFERRED STOCK SERIES C AT 25 APIECE PRICED AT PAR FOR A 76 DIVIDEND YIELD TO BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS CLINICOM INC 972325 COMMON SHARES SOLD IN A PUBLIC OFFERING AT 2050 APIECE THROUGH MANAGER PACIFIC GROWTH EQUITIES CYRIX CORP INITIAL PUBLIC OFFERING OF TWO MILLION SHARES PRICED AT 16 APIECE THROUGH UNDERWRITERS MONTGOMERY SECURITIES AND COWEN & CO GENERAL ATLANTIC RESOURCES INC INITIAL PUBLIC OFFERING OF 92 MILLION COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MAGMA COPPER CO TWO MILLION SHARES OF 5625 CUMULATIVE CONVERTIBLE PREFERRED STOCK SERIES D SOLD AT 50 APIECE PACIFIC GAS & ELECTRIC CO FIVE MILLION SHARES OF PERPETUAL PREFERRED STOCK AT 25 APIECE PRICED AT PAR FOR A 6875 DIVIDEND YIELD TO BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SPEEDY MUFFLER KING INC INITIAL PUBLIC OFFERING OF 25 MILLION COMMON SHARES AT 13 CANADIAN DOLLARS US1013 APIECE FOR GROSS PROCEEDS OF C325 MILLION US253 MILLION UNDERWRITTEN BY SCOTIAMCLEOD INC AND FIRST MARATHON SECURITIES LTD STECKVAUGHN PUBLISHING CORP INITIAL PUBLIC OFFERING OF 23 MILLION COMMON SHARES SOLD AT 12 APIECE THROUGH AN UNDERWRITING GROUP LED BY ROBERTSON STEPHENS & CO EAST BAY MUNICIPAL UTILITY DISTRICT WATER SYSTEM 2413 MILLION SUBORDINATED REVENUE REFUNDING BONDS TENTATIVELY PRICED BY A GROUP LED BY MORGAN STANLEY & CO TO YIELD FROM 26 IN 1994 TO 55 IN 2021 AKEBONO BRAKE INDUSTRY CO JAPAN 150 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE AUG 5 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 1125 COUPON AT PAR VIA NOMURA BANK SWITZERLAND WARRANTS EXERCISABLE FROM AUG 19 1993 TO JULY 22 1997 FINAL TERMS FIXED JULY 22 FEES 1625 POINTS BANQUE NATIONALE DE PARIS FRANCE 125 MILLION CANADIAN DOLLARS OF 6375 EUROBONDS DUE AUG 18 1997 AT ISSUE PRICE 100935 VIA SWISS BANK CORP REOFFERED AT 9956 TO YIELD 65 A SPREAD OF 45 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE AUGUST 1996 FEES 1625 POINTS BREMER LANDESBANK GERMAN AGENCY 100 MILLION SWISS FRANCS OF 475 PUBLIC SUBORDINATED BONDS DUE SEPT 1 2003 PRICED AT 101625 VIA CREDIT SUISSE FEES 2375 POINTS BRITANNIA BUILDING SOCIETY UK 50 MILLION OF FLOATINGRATE EURONOTES DUE JUNE 1997 VIA NATWEST CAPITAL MARKETS LTD PRICE AND COMMISSIONS UNDISCLOSED BONDS TO TRADE INTERCHANGEABLY WITH 100 MILLION OF OUTSTANDING IDENTICAL NOTES ALL OTHER TERMS UNCHANGED INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 15 BASIS POINTS NOTES INCLUDE ADDITIONAL DETACHABLE INTEREST RATES WHICH ENTITLE THEIR HOLDERS TO COUPON OF 5 LESS THREEMONTH LIBOR WHEN LIBOR FALLS BELOW 5 DETACHABLE INTEREST RATES WERE PRIVATELY PLACED CREDITANSTALTBANKVEREIN AUSTRIA 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE AUGUST 2005 AT ISSUE AND REOFFER PRICE 99625 FOR OWN ACCOUNT INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR LESS 025 POINT SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 FEES 05 POINT DENMARK SOVEREIGN 150 BILLION ITALIAN LIRE OF 845 EUROBONDS DUE AUG 10 1995 AT ISSUE PRICE 10098 VIA BANCA COMMERCIALE ITALIANA BONDS YIELD 853 AT BREAKEVEN PRICE FOR COMANAGERS OF 99855 FEES 1125 POINTS ESSAR GUJARAT LTD INDIA 60 MILLION OF CONVERTIBLE EUROBONDS DUE AUG 5 1998 AT ISSUE PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD CONVERTIBLE INTO ORDINARY SHARES OF COMPANY FROM SEPT 5 1993 TO JULY 5 1998 AT INDICATED PREMIUM OF UP TO 5 COUPON INDICATED BETWEEN 55 AND 6 TERMS FIXED WEEK OF JULY 26 BONDS CALLABLE AFTER THREE YEARS SUBJECT TO SHARES BEING 130 OF CONVERSION PRICE PUT OPTION EXERSCISABLE AFTER THREE YEARS AT PAR FEES THREE POINTS QUEEN IN THE RIGHT OF NEW ZEALAND SOVEREIGN C200 MILLION OF 625 EUROBONDS DUE DEC 23 1996 AT ISSUE PRICE 1004 VIA HAMBROS BANK LTD REOFFERED AT 99225 TO YIELD 6501 A MARGIN OF 45 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES 1375 POINTS 9307160147 930716 LETTERS TO THE EDITOR TAX BILL'S DANGERS THE PRESIDENT'S PROPOSED TAX BILL POSES A SIGNIFICANT DANGER TO THE STATES OF CONNECTICUT NEW YORK NEW JERSEY MASSACHUSETTS CALIFORNIA AND ILLINOIS IT IS IN THESE STATES THAT THE BULK OF THE 2 WHO ARE GOING TO PAY TWOTHIRDS OF THE TAXES LIVES NEW YORK CITY WILL BE ESPECIALLY HARDHIT THAT LOSS OF PURCHASING POWER WILL MAKE FOR FEWER JOBS AND LOWER WAGES AND WILL HAVE A HUGE IMPACT ON STATES ALREADY REELING FROM DEFENSE CUTBACKS AND THE EFFECT OF THE RECESSION THE SENATE PROPOSAL TO INCREASE THE CAPITALGAINS RATE FROM 28 TO 308 IS JUST ONE MORE ITEM IN THE LIST THAT HEAVILY WEIGHTS THE IMPACT TAX REVENUES RAISED IN THESE STATES WILL NOT BE TARGETED TO BE SPENT IN THESE STATES THE EFFECT IS UNEVEN AND UNFAIR 9307160146 930716 FRAMLINGTON FIRM VENTURES TO RUSSIA WITH PUBLIC FUND BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL THE FEW PENSION FUND MANAGERS WHO LIKE LIVING DANGEROUSLY IF THERE ARE ANY WILL BE HAPPY TO KNOW THAT AT LAST THEY CAN INVEST THEIR ASSETS IN THE RUSSIAN ECONOMY BRITISH ASSETMANAGEMENT FIRM FRAMLINGTON IS PREPARING TO LAUNCH A FUND INVESTING IN RUSSIAN COMPANIES SAYS JEANLUC SCHILLING HEAD OF FRAMLINGTON'S INTERNATIONAL DEVELOPMENT HE SAYS THE GROUP PLANS TO MARKET THE CLOSEDEND LUXEMBOURG FUND WITHIN TWO MONTHS TO INSTITUTIONAL INVESTORS PRIMARILY IN THE US AND EUROPE FRAMLINGTON'S FUND WOULD BE THE FIRST PUBLICLY MARKETED RUSSIAN FUND AVAILABLE TO INVESTORS BUT OTHER INVESTMENT GROUPS SEEM LIKELY TO FOLLOW AT JOHN GOVETT & CO IN LONDON CHIEF EXECUTIVE KEVIN PAKENHAM SAYS HIS COMPANY WHICH ALREADY INVESTED IN A NUMBER OF EAST EUROPEAN COUNTRIES IS LOOKING VERY SERIOUSLY AT SUCH A PROJECT ALTHOUGH IT HASN'T APPROACHED POTENTIAL INVESTORS TO MARKET A FUND ROBERT FLEMING & CO MAY NOT BE FAR BEHIND EITHER FLEMING RUNS THE ONLY EXISTING RUSSIAN FUND SET UP EARLY LAST YEAR THE FUND WAS INTENDED TO HELP THE INVESTMENT COMPANY SOUND THE UNCHARTED WATERS OF RUSSIAN BUSINESS BEFORE TAPPING OUTSIDE INVESTORS SO FAR IT IS INVESTED ONLY IN AVIATION AND TIMBER SECTORS AND PUBLISHES NO INFORMATION ON ITS SIZE OR RETURN BUT PATRICK GIFFORD CHAIRMAN OF THE FLEMING RUSSIA INVESTMENT CORP SAID THE FIRM IS CONSIDERING HOW THE FUND SHOULD BE DEVELOPED NOW THAT IT YIELDS A RETURN CHANGES COULD INVOLVE OPENING THE FUND TO OUTSIDE INVESTORS BUT THAT HASN'T BEEN DECIDED THE FIRST WESTERN ATTEMPT TO PROMOTE A RUSSIAN FUND ENDED ABRUPTLY IN EARLY 1992 WHEN US INVESTMENT FIRM BATTERYMARCH FINANCIAL MANAGERS INC DROPPED PLANS FOR A 250 MILLION FUND THE COMPANY RAISED COMMITMENTS FOR ALMOST HALF THAT AMOUNT MOSTLY FROM US PENSION FUNDS BUT SAID THE RISKS WERE TOO GREAT FOR THE PROJECT AIMED AT INVESTING IN CONVERTING RUSSIAN MILITARY INSTALLATIONS THROUGH JOINT VENTURES WITH THE EXISTING STATE GOVERNMENT TODAY THE BOSTONBASED GROUP'S TREASURER FRANCIS TRACY SAYS IT WON'T REENTER THE BUSINESS UNTIL THERE IS AN ESTABLISHED SECURITIES MARKET IN RUSSIA THE 10YEAR FRAMLINGTON FUND IS SOMEWHAT MORE MODEST THAN BATTERYMARCH'S PROJECT AND EXPECTS TO RAISE 50 MILLION TO 75 MILLION BEFORE CLOSING WITH A 100000 MINIMUM INVESTMENT PER PARTICIPANT MR SCHILLING SAID THE FUND WILL BE ADVISED BY A NINEMEMBER RUSSIAN ASSETMANAGEMENT TEAM ESTABLISHED IN MOSCOW BY FRAMLINGTON'S FRENCH PARENT CREDIT COMMERCIAL DE FRANCE MR SCHILLING ESTIMATES THAT THE TEAM HAS IDENTIFIED 20 TO 30 POTENTIAL INVESTMENT TARGETS INCLUDING GAS AND OIL RETAILING AND PROPERTY CONCERNS 9307160145 930716 SANDOZ POSTS 10 RISE IN FIRSTHALF INCOME FROM YEARAGO NET SPECIAL TO THE WALL STREET JOURNAL ZURICH SANDOZ AG A MAJOR SWISS DRUG GROUP REPORTED THAT NET INCOME IN THE FIRST HALF OF 1993 ADVANCED 10 TO 998 MILLION SWISS FRANCS US6607 MILLION FROM A YEAR EARLIER THE COMPANY DIDN'T PROVIDE A COMPARABLE FIGURE FOR THE YEARAGO PERIOD CONSOLIDATED SALES ROSE 2 TO 8030 BILLION SWISS FRANCS FROM 7893 BILLION FRANCS IN THE YEARAGO PERIOD IN LOCAL CURRENCY TERMS SALES ROSE 4 SANDOZ SAID IT EXPECTS A SIGNIFICANT RISE IN 1993 GROUP PROFIT BARRING MAJOR DETERIORATION IN THE ECONOMIC AND POLITICAL ENVIRONMENT IN 1992 SANDOZ HAD GROUP NET INCOME OF 15 BILLION FRANCS BASED ON INTERNATIONAL ACCOUNTING STANDARDS ON GROUP SALES OF 1442 BILLION FRANCS SALES IN THE FIRST HALF OF 1993 ROSE 3 TO 3636 BILLION FRANCS IN THE DRUG DIVISION FROM 3542 BILLION FRANCS IN THE YEARAGO PERIOD THE GROUP SAID SALES IN THE SEEDS DIVISION DECLINED 5 TO 735 MILLION FRANCS FROM 774 MILLION FRANCS BECAUSE OF THE SALE OF SOME BUSINESS ACTIVITIES AND NEGATIVE CURRENCY FLUCTUATIONS SALES IN THE NUTRITION DIVISION ALSO FELL 5 TO 893 MILLION FRANCS FROM 937 MILLION FRANCS SANDOZ SAID THE CHEMICALS DIVISION SAW POSITIVE DEVELOPMENTS IN THE US AND ASIA WHILE SALES IN EUROPE WERE INFLUENCED BY ECONOMIC DIFFICULTIES THE AGROCHEMICAL SECTOR GAINED ON THE EXPANSION IN NEW MARKETS THE COMPANY ADDED FIRSTHALF GROUP SALES IN THE CHEMICALS SECTOR REMAINED FLAT AT 1308 BILLION FRANCS WHILE SALES OF AGROCHEMICALS ROSE 11 TO 891 MILLION FRANCS FROM 803 MILLION FRANCS 9307160144 930716 MARKETING & MEDIA TIME WARNER POSTS 80 MILLION LOSS FOR 2ND QUARTER BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC POSTED A SECONDQUARTER NET LOSS OF 80 MILLION BUT SAID OPERATING RESULTS IMPROVED IN ALL FIVE OF ITS DIVISIONS OPERATING PROFIT OR EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION GREW 10 TO 673 MILLION WITH THE STRONGEST GAINS IN THE PUBLISHING AND CABLE UNITS IN THE YEAREARLIER QUARTER TIME WARNER REPORTED NET INCOME OF 9 MILLION BUT REPORTED A LOSS OF 40 CENTS A SHARE AFTER PAYMENT OF 156 MILLION IN PREFERRED DIVIDENDS TIME WARNER SHARPLY LOWERED ITS PERSHARE LOSS IN THIS YEAR'S QUARTER TO 22 CENTS A SHARE BECAUSE IT HAS REDEEMED BLOCKS OF PREFERRED SHARES THE 1993 QUARTER'S LOSS INCLUDED A 35 MILLION AFTERTAX EXTRAORDINARY LOSS ON RETIREMENT OF DEBT IN THE QUARTER INTEREST EXPENSES INCREASED TO 353 MILLION FROM 237 MILLION BECAUSE TIME WARNER CONVERTED ITS PREFERRED STOCK TO DEBT WITH SOME AT LONGERTERM AND LOWER INTEREST RATES REVENUE INCREASED TO 33 BILLION IN THE SECOND QUARTER COMPARED WITH 31 BILLION IN THE YEAREARLIER PERIOD TIME WARNER CHAIRMAN AND CHIEF EXECUTIVE GERALD M LEVIN SAID IN A STATEMENT THAT THE COMPANY'S LATEST MOVES CONTINUE THE IMPROVEMENTS WE STARTED IN 1992 TO RESTRUCTURE OUR DEBT THROUGH SIGNIFICANT LENGTHENING OF MATURITIES REDUCING OUR FINANCING COSTS AND INCREASING OUR CASH FLOW THE CABLE UNIT SHOWED AN 11 GAIN IN OPERATING PROFIT TO 270 MILLION DUE LARGELY TO THE ADDITION OF MORE SUBSCRIBERS AND GROWTH IN ADVERTISING AND PAYPERVIEW REVENUES OPERATING PROFIT IN THE TIME INC PUBLISHING UNIT ROSE 19 TO 105 MILLION PUBLISHING RESULTS WERE DRIVEN IN PART BY STRONG MAGAZINE CIRCULATION AND IMPROVED OVERALL PERFORMANCE AT TIME INC'S REGIONAL AND LIFESTYLES MAGAZINES OPERATING PROFIT AT THE WARNER MUSIC GROUP INCREASED 8 TO 136 MILLION HELPED BY INCREASES IN INTERNATIONAL MUSIC SALES FROM SUCH ARTISTS AS ROD STEWART AND NATALIE COLE FILMED ENTERTAINMENT OPERATING PROFIT ROSE 4 TO 105 MILLION WITH RECORD INTERNATIONAL THEATRICAL AND WORLDWIDE SYNDICATION REVENUES CONTRIBUTING TO RESULTS THE HOME BOX OFFICE PAYTV UNIT'S RESULTS INCREASED 8 TO 57 MILLION PRIMARILY DUE TO IMPROVED RESULTS FROM NEW BUSINESS ACTIVITIES IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TIME WARNER CLOSED AT 38125 DOWN 50 CENTS 9307160143 930716 POLITICS & POLICY COMPANIES' FIGHT TO PROTECT CREDIT FOR OPERATIONS IN PUERTO RICO ILLUSTRATES THE STAKES IN DEFICIT BILL BY DAVID ROGERS AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN THE CHIEF EXECUTIVE OFFICERS OF BAXTER INTERNATIONAL INC AND GD SEARLE CO WERE USHERED IN TO SEE HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI THIS WEEK ILLINOIS POLITICS AND PUERTO RICO PROFITS WERE ON THEIR MINDS THE CEOS WERE PART OF A DELEGATION PRESENTING MR ROSTENKOWSKI WITH A SHEET OF PAPER TITLED ILLINOIS POSITION ON MODIFICATION OF SECTION 936 THEIR ARGUMENT TO THE CHICAGO DEMOCRAT WAS SIMPLE THAT HIS HOME AREA IN FACT BENEFITED FROM THE TAXCODE PROVISIONS AFFECTING COMPANIES WITH OPERATIONS IN THE ISLAND COMMONWEALTH AND THAT LANGUAGE AFFECTING THE PROVISION IN THE SENATE VERSION OF THE TAX BILL NEEDED TO BE CHANGED ALL WAS POLITE BUT BEHIND THE MANEUVERING IS A NOTSOSUBTLE FIGHT DIVIDING MAJOR CORPORATIONS TRYING TO PROTECT THEIR SHARES OF THE LUCRATIVE 936 CREDIT WHICH IS DESIGNED TO ENCOURAGE INVESTORS TO LOCATE AND EMPLOY WORKERS IN PUERTO RICO SOME REDUCTION OF THE CREDIT SEEMS CERTAIN TO EMERGE FROM THE HOUSESENATE NEGOTIATIONS OVER THE BILL BUT HOW MUCH OF A REDUCTION AND WHAT FORM IT TAKES COULD HAVE MAJOR IMPLICATIONS FOR THE BIG CORPORATE PLAYERS INVOLVED IN THE CASE OF MR ROSTENKOWSKI'S VISITORS BAXTER A MEDICAL EQUIPMENT MAKER AND MONSANTO CO'S SEARLE UNIT A PHARMACEUTICAL COMPANY ARE RELATIVELY LABORINTENSIVE IN THEIR PUERTO RICAN ACTIVITIES AND THAT CAN PUT THEM AT ODDS WITH MORE CAPITALINTENSIVE FIRMS ON THE ISLAND SUCH AS PFIZER INC AND MERCK & CO WHICH HAVE THEIR OWN INTERESTS IN THE CREDIT THE ISSUE ILLUSTRATES THE HUGE STAKES THAT SPECIAL INTERESTS HAVE IN THE DEFICITREDUCTION BILL AND SHOWS HOW THEY USE THEIR POLITICAL MUSCLE TO FIGHT TO MINIMIZE THEIR LOSSES AND GAIN ADVANTAGES AT TIMES THIS WEEK IN THE CAPITOL THERE WERE MORE CEOS THAN LAWMAKERS IN THE CORRIDORS OFF THE FLOOR OF THE HOUSE AS THE MEN OF STEEL OIL AND PHARMACEUTICALS CAME TO MAKE THEIR CASE IT'S ALL GOTTEN TO MONEY AT THIS POINT SAYS RONALD PALENSKI GENERAL COUNSEL TO A TECHNOLOGY TRADE GROUP ANXIOUS TO SAVE A SENATE PROVISION THAT HELPS BIG FIRMS LIKE GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS WRITE OFF THE COST OF ACQUIRING SOFTWARE COMPANIES BEYOND TAXES THE MASSIVE BUDGET BILL TOUCHES ON REGULATORY ISSUES THAT HAVE PROVOKED A PITCHED FIGHT BETWEEN SUCH CABLE AND COMMUNICATIONS GIANTS AS TIME WARNER INC AND MCCAW CELLULAR COMMUNICATIONS INC BUT WHERE BUSINESS SEES ONLY PAINFUL CHOICES LAWMAKERS SEE LEVERS TO PULL ANYTHING THAT GIVES ME FLEXIBILITY HELPS ME AS A NEGOTIATOR SAYS CHAIRMAN ROSTENKOWSKI AND WITH NO VOTES TO SPARE HOUSE AND SENATE LEADERS ARE LOOKING TO CORPORATIONS TO HELP DELIVER SUPPORT FOR THE FINAL PACKAGE THUS WHEN BETHLEHEM STEEL CORP EXECUTIVES CAME THIS WEEK TO ARGUE FOR MORE RELIEF FOR HEAVY INDUSTRY FROM THE ALTERNATIVE MINIMUM TAX FRIENDLY DEMOCRATS TOOK NOTE THAT THE CONGRESSMAN FROM THE COMPANY'S OWN DISTRICT FRESHMAN DEMOCRATIC REP PAUL MCHALE OF PENNSYLVANIA HAD OPPOSED THE PARTY LEADERSHIP ON THE DEFICIT BILL NO SPECIFIC PROVISION OF THE DEFICITREDUCTION MEASURE HAS GENERATED QUITE AS MUCH SPECIALINTEREST HEAT AS THE 936 CREDIT THE FIGHT BEGAN IN THE HOUSE WHICH BACKED AN ADMINISTRATION PLAN TO CUT THE VALUE OF THE CREDIT BY 67 BILLION OVER FIVE YEARS THE SENATE AFTER LOBBYING BY HISPANIC LAWMAKERS AND CONCESSIONS BY THE TREASURY RESTORED MORE THAN 25 BILLION OF THIS BUT IT THEN APPLIED AN APPROACH TO CALCULATING THE CREDIT BACKED BY DEMOCRATIC SEN BILL BRADLEY OF NEW JERSEY THAT CRITICS ARGUE IS UNFAIRLY TILTED IN FAVOR OF THE CAPITALINTENSIVE FIRMS MANY OF WHICH LIKE MERCK ARE BASED IN MR BRADLEY'S HOME STATE THE HOUSE WOULD LIMIT THE VALUE OF THE CREDIT TO 60 OF THE WAGES PAID BY A COMPANY TO ITS WORKERS IN PUERTO RICO BUT THE SENATE PLAN AFTER SOME LASTMINUTE MANEUVERING BY MR BRADLEY WOULD GIVE COMPANIES THE OPTION OF CONTINUING TO BASE THE CREDIT ON THE INCOME GENERATED BY PUERTO RICAN OPERATIONS A BOON FOR THE CAPITALINTENSIVE FIRMS UNDER THIS APPROACH THE VALUE OF THE CREDIT WOULD BE RESTRICTED IN 1994 TO 60 WITH THAT PHASED DOWN TO 40 IN 1998 LABORINTENSIVE COMPANIES ARGUE THAT THEY SHOULD RECEIVE PREFERENCE BECAUSE THEY ARE DOING THE MOST TO SPUR EMPLOYMENT BUT CAPITALINTENSIVE COMPANIES ARGUE THAT THEIR OPERATIONS OFTEN YIELD HIGHERPAYING JOBS AND THAT THE LABORINTENSIVE COMPANIES ARE IN FACT DOUBLEDIPPING NOW BY DEMANDING NOT ONLY A WAGE CREDIT BUT THE CHANCE TO DEDUCT SOME OF THE SAME COMPENSATION COSTS AS EXPENSES THE CHIEF LOBBYING ARM FOR MAINLAND COMPANIES IN PUERTO RICO PLAYS DOWN ANY SPLIT BETWEEN THE CAPITALINTENSIVE FIRMS AND MORE LABORINTENSIVE ONES SUCH AS BAXTER THEY ALL WANT TO SEE BALANCE SAYS PETER HOLMES OF THE 70MEMBER PUERTO RICO USA FOUNDATION BUT THE COALITION IS PLAINLY FRAYED EACH COMPANY IS SQUABBLING BEHIND THE OTHER'S BACK SAYS CARLOS ROMEROBARCELO THE DEMOCRAT WHO REPRESENTS PUERTO RICO AS A DELEGATE IN CONGRESS LARRY O'BRIEN A WASHINGTON LAWYER REPRESENTING LABORINTENSIVE FIRMS IN THE FIGHT DECLARES WE'RE NOT ALL PEAS IN A POD MR O'BRIEN'S CLIENTS INCLUDING GENERAL ELECTRIC CO WESTINGHOUSE ELECTRIC CORP AND STORAGE TECHNOLOGY CORP WERE REPRESENTED AT A MEETING WEDNESDAY OF THOSE APPARENTLY NOT SATISFIED THE PUERTO RICO USA FOUNDATION COULD SPEAK FOR THEM ANY MORE BAXTER SUN CO PEPSICO INC US SURGICAL CORP AND ALLERGAN INC PARTICIPATED IN THE SAME SESSION AT WHICH THE GROUP FINALIZED A STRATEGY TO TRY TO MAKE THE SENATE PROPOSAL MORE FAVORABLE TO LABORINTENSIVE COMPANIES WHAT'S GOOD FOR THE CAPITALINTENSIVE FIRMS IS CERTAINLY NOT GOOD FOR US SAYS BILL MCLEOD THE VICE PRESIDENT IN CHARGE OF TAX MATTERS AT ALLERGAN NONE OF THE PLAYERS ARE POLITICAL WALLFLOWERS FOR INSTANCE SEARLE BAXTER AND THEIR TOP EXECUTIVES GAVE A COMBINED 158640 IN DIRECT CONTRIBUTIONS AND UNRESTRICTED SOFTMONEY DONATIONS TO CANDIDATES AND THE TWO MAJOR POLITICAL PARTIES DURING THE MOST RECENT ELECTION CYCLE ACCORDING TO FIGURES COMPILED FOR THE WALL STREET JOURNAL BY THE CENTER FOR RESPONSIVE POLITICS MEANWHILE MERCK AND PFIZER WEIGHED IN WITH A COMBINED 411127 IN CONTRIBUTIONS DURING THE SAME PERIOD FOR ITS PART LABORINTENSIVE PEPSI COUGHED UP A TOTAL OF 312074 IN CONTRIBUTIONS DURING THE ELECTION CYCLE RIVAL COCACOLA CO WHICH HAPPENS TO BE MORE CAPITALINTENSIVE GAVE 412660 BEYOND THE MONEY THE COMPANIES ARE PLAYING ON THE ETHNIC POLITICS OF LATINO VOTERS PARTICULARLY IN THE CHICAGO AND NEW YORK METROPOLITAN AREAS MR ROSTENKOWSKI WHO HELPED TO PROTECT THE 936 CREDIT AMID THE 1986 TAX REFORM EFFORT AT THE TIME HAD A STRONG HISPANIC CONSTITUENCY LOBBYING HIM HE HAS SINCE SHED MUCH OF THAT THROUGH REDISTRICTING BUT SIMILAR PRESSURES ARE STILL FELT BY SEN BRADLEY AND MORE POINTEDLY SENATE FINANCE CHAIRMAN DANIEL PATRICK MOYNIHAN OF NEW YORK WHO IS UP FOR REELECTION NEXT YEAR IN 1986 IT WAS DAN ROSTENKOWSKI AND THE PUERTO RICANS IN HIS DISTRICT SAYS DEMOCRATIC REP LUIS GUTIERREZ OF ILLINOIS IN 1993 IT IS PAT MOYNIHAN AND THE PUERTO RICANS IN HIS STATE RATIO OF TAX BENEFITS PER EMPLOYEE TO COMPENSATION PER EMPLOYEE FOR MAINLAND COMPANIES OPERATING IN PUERTO RICO IN PERCENT 9307160142 930716 APPLE REPORTS WEAK RESULTS FOR 3RD PERIOD UNEXPECTEDLY BIG CHARGE POOR OPERATING PROFIT SUGGEST GREATER TROUBLE BY JIM CARLTON AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL APPLE COMPUTER INC REPORTED SURPRISINGLY WEAK OPERATING PROFIT AND AN UNEXPECTEDLY LARGE ONETIME RESTRUCTURING CHARGE INDICATING IT MAY BE UNDER GREATER STRESS THAN MOST INDUSTRY OBSERVERS THOUGHT APPLE POSTED A LOSS OF 1883 MILLION OR 163 A SHARE FOR THE THIRD QUARTER ENDED JUNE 25 COMPARED WITH NET INCOME OF 1317 MILLION OR 107 A SHARE A YEAR AGO SALES ROSE 7 TO 186 BILLION FROM 174 BILLION THE ONETIME CHARGE TO PAY FOR TERMINATING 2500 WORKERS AND OTHER COST REDUCTIONS AIMED AT RESTORING GROWTH IN THE TURBULENT PERSONALCOMPUTER INDUSTRY AMOUNTED TO 3209 MILLION OR 1989 MILLION AFTER TAX IT IS SOMEWHAT HIGHER THAN MANY ANALYSTS HAD ANTICIPATED WHEN APPLE ANNOUNCED THIS MONTH THAT IT WOULD REDUCE ITS WORK FORCE BY 16 AS PART OF A BROAD REENGINEERING OF THE CUPERTINO CALIF COMPANY ANALYSTS HAD ESTIMATED THE CHARGE COULD AMOUNT TO 250 MILLION TO 300 MILLION MORE OMINOUSLY APPLE'S OPERATING RESULTS EXCLUDING THE CHARGE WERE A MAJOR DISAPPOINTMENT TO ANALYSTS APPLE'S RESULTS OF NINE CENTS A SHARE EXCLUDING THE CHARGE WERE FAR BELOW ANALYSTS' ESTIMATES OF AS MUCH AS 74 CENTS A SHARE ANALYSTS HAD ALSO EXPECTED 2 BILLION IN REVENUE THE RESULTS CONFIRM THAT APPLE'S MACINTOSH LINE IS LOSING STEAM IN THE RETAIL MARKET APPLE'S RESULTS WERE RELEASED AFTER THE CLOSE OF TRADING YESTERDAY APPLE'S STOCK NONETHELESS CLOSED AT 3575 DOWN 150 IN NATIONAL OVERTHECOUNTER TRADING AND A NEW FIVEYEAR LOW FOR THE STOCK APPLE'S SHARES ARE OFF 45 SINCE THE BEGINNING OF THE YEAR A SWOON THAT REPRESENTS A 357 BILLION LOSS OF MARKET VALUE IN ANOTHER OMINOUS INDICATOR APPLE SHARES FELL SHARPLY IN AN OFFMARKET AFTERHOURS TRADING SYSTEM KNOWN AS INSTINET AS BIG AS IT WAS SOME ANALYSTS CRITICIZED APPLE'S RESTRUCTURING CHARGE AS INSUFFICIENT BASED ON APPLE'S SLOWED RATE OF SALES GROWTH AND CONTINUED PRESSURE ON GROSS PROFIT MARGINS APPLE HAS TO CHOP EXPENSES FASTER SAID BRUCE M LUPATKIN A HIGHTECH ANALYST AT HAMBRECHT & QUIST BECAUSE THE FULL IMPACT OF COST CUTS WON'T KICK IN FOR SOME TIME AND PC SALES ARE ENTERING A TYPICALLY SLOWER TIME OF THE YEAR HE SAID APPLE'S PROFIT MARGINS ARE LIKELY TO FACE A CONTINUED SQUEEZE UNDER ITS NEW CHIEF EXECUTIVE OFFICER MICHAEL SPINDLER THE COMPANY ALSO SLASHED PRICES THIS WEEK BY AS MUCH AS ONETHIRD ON MANY OF ITS MOST EXPENSIVE MACHINES AND ON NOTEBOOK COMPUTERS IN ANOTHER BID TO BOOST MARKET SHARE APPLE CUT PRICES ON ITS MOST POPULAR MIDRANGE DESKTOPS LAST MONTH BY ROUGHLY 11 APPLE IS CURRENTLY STUCK AT ABOUT 12 OF WORLDWIDE PC MARKET SHARE AND ITS MARGINS HAVE ALREADY ERODED SEVERELY OVER THE PAST THREE YEARS AMID PRICING WARS ALTHOUGH MR SPINDLER SAID RECENT FEEDBACK FROM RETAILERS SUGGEST ITS PRICE CUTS ARE BOOSTING SALES WE'RE CONFIDENT WE CAN PUT OUR BUSINESS BACK ON A GROWTH PATH BY AGGRESSIVELY PURSUING MARKET SHARE WHILE OFFERING INNOVATIVE NEW TECHNOLOGY MR SPINDLER SAID AT THE SAME TIME WE MUST SIGNIFICANTLY AND PERMANENTLY LOWER OUR COST OF DOING BUSINESS ACCORDING TO MR LUPATKIN APPLE HAS TO BASICALLY ACHIEVE HIGH SALES GROWTH AND HAVE ITS NEW POWERPC MACINTOSHES BASED ON A MICROPROCESSOR DEVELOPED WITH INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC BE A BIG BIG HIT THE POWERPC MODELS ARE DUE OUT THE FIRST HALF OF NEXT YEAR IF ONE OR BOTH OF THOSE THINGS DON'T HAPPEN THEN APPLE IS TOAST MR LUPATKIN SAID AS PART OF THE RESTRUCTURING APPLE SAID YESTERDAY IT HAS CONSOLIDATED OPERATIONS FROM EIGHT INTO FIVE BUSINESS UNITS WITH EACH UNIT NOW HOLDING GREATER RESPONSIBILITY FOR PROFITABILITY THE FIVE NEW UNITS ARE PERSONAL COMPUTER DIVISION APPLESOFT DIVISION APPLE BUSINESS SYSTEMS DIVISION PERSONAL INTERACTIVE ELECTRONICS DIVISION AND CLARIS CORP FOR THE NINEMONTH PERIOD APPLE SAID ITS NET FELL TO 839 MILLION OR 70 CENTS A SHARE ON SALES OF 584 BILLION FROM YEAREARLIER PROFIT OF 4328 MILLION OR 352 A SHARE ON REVENUE OF 532 BILLION SEPARATELY APPLE OFFICIALS SAID IN INTERVIEWS THAT THE COMPANY IS PLANNING ITS BIGGEST PUSH EVER INTO THE VAST LARGELY UNTAPPED MARKET OF CHINA APPLE WILL ESTABLISH A BEIJING HEADQUARTERS THAT WILL COORDINATE AN EXTENSIVE MARKETING AND DISTRIBUTION EFFORT IN CHINA SAID DAVID JONES AN APPLE DIRECTOR OF BUSINESS DEVELOPMENT APPLE ALSO PLANS TO EXPAND ITS SINGAPORE MANUFACTURING OPERATION TO BETTER SERVE THE CHINESE MARKET HE SAID 9307160141 930716 MIDWEST FARM BANKS STEP IN TO OFFER LOWINTEREST LOANS TO FLOOD VICTIMS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL THE MIDWEST'S FARM BANKS FLUSH WITH CASH AND FACING LITTLE THREAT TO THEIR FINANCIAL HEALTH FROM THE MASSIVE AMOUNT OF FLOODING ACROSS THE CORN BELT ARE RUSHING IN WHERE FEDERAL BUREAUCRATS ARE SLOW TO TREAD THEY'RE OFFERING IMMEDIATE LOWINTEREST LOANS TO FARMERS BUSINESSES AND HOMEOWNERS VICTIMIZED BY THE FLOODS THE BANK LOANS ARE THE FIRST INSTALLMENT IN WHAT EVENTUALLY IS EXPECTED TO BE BILLIONS OF DOLLARS WORTH OF FLOODRELIEF FUNDS ONCE FEDERAL DISASTER LOANS AND INSURANCE PAYMENTS ARE ADDED IN THE LATEST ESTIMATES OF FLOOD DAMAGE INCLUDING THE COST OF REPAIRING LEVEES ROADS AND RAIL LINES ARE AT 5 BILLION AND CLIMBING PRESIDENT CLINTON THIS WEEK SAID HE WOULD ASK CONGRESS FOR NEARLY 25 BILLION IN FLOOD RELIEF BUT SAID THAT AMOUNT WAS LIKELY TO INCREASE IN THE WEEKS AHEAD AS THE FULL EXTENT OF THE DAMAGE BECOMES KNOWN BANKERS SAY IT CAN TAKE 120 DAYS OR MORE FOR DISASTER VICTIMS TO RECEIVE FEDERAL FUNDS FOR NOW FARM BANKS ARE PROVIDING THE FINANCIAL FIRST AID THE LOWINTEREST LOANS ARE LIKELY TO BUY THE BANKS GOODWILL AND THEY HOPE FUTURE BUSINESS FROM GRATEFUL CUSTOMERS EVEN IF THEY DON'T THE ROCKBOTTOM RATES WILL STILL YIELD A PROFIT FOR THE BANKS WHOSE COST OF FUNDS ARE MORE THAN A FULL PERCENTAGE POINT BELOW THE LOAN RATES NORWEST CORP BASED IN MINNEAPOLIS HAS EARMARKED 25 MILLION TO OFFER ASSISTANCE IMMEDIATELY IN THE FORM OF UNSECURED LOANS OF AS MUCH AS 100000 TO FLOODDAMAGED BUSINESSES AND FARMERS IN IOWA THE BANK HOLDING COMPANY VIA ITS IOWA SUBSIDIARY ALSO SET ASIDE 25 MILLION FOR UNSECURED LOANS OF AS MUCH AS 5000 FOR INDIVIDUAL FLOOD VICTIMS NORWEST IS OFFERING EASY TERMS AS WELL REQUIRING ONLY THAT INTEREST ON THE FLOOD LOANS WHICH RANGES FROM 45 TO 5 BE REPAID DURING THE FIRST YEAR WE'RE TRYING TO BE THAT IMMEDIATE BRIDGE FOR BUSINESSES AND FARMERS WHO NEED MONEY RIGHT AWAY WE'RE NOT TRYING TO TAKE THE PLACE OF THE FEDERAL GOVERNMENT SAID GERALD DELAND CHIEF EXECUTIVE OFFICER OF NORWEST'S DAVENPORT BANK & TRUST CO IN DAVENPORT IOWA IN DES MOINES BOATMEN'S BANCSHARES OF IOWA INC A UNIT OF BOATMEN'S BANCSHARES INC OF ST LOUIS SAID IT IS OFFERING UNSECURED LOWINTEREST HOME IMPROVEMENT LOANS OF AS MUCH AS 10000 TO FLOOD VICTIMS AT AN INTEREST RATE OF 575 PAYMENTS ON THESE LOANS AS WELL AS EXISTING LOANS AND CREDITCARD DEBTS CAN BE DEFERRED UP TO 90 DAYS BY FLOOD VICTIMS THE FINANCIAL CONDITION OF MOST FARM BANKS IS A FAR CRY FROM THE MID1980S WHEN OVERLEVERAGED BANKS WERE FAILING AT NEARLY THE RATE OF ONE A WEEK THE BANKS THAT SURVIVED THE 1980S FARM CRISIS ARE MUCH MORE DIVERSIFIED GEOGRAPHICALLY AND IN TERMS OF THEIR LOAN PORTFOLIOS AND OVER THE PAST FEW YEARS FARM BANKS AND OTHER BANKS FACED WITH SLUGGISH DEMAND FOR LOANS DURING THE RECESSION AND SLOW RECOVERY HAVE REAPED A BONANZA FROM INVESTING THEIR FUNDS IN TREASURY NOTES AND BONDS WHOSE PRICES SOARED AS INTEREST RATES FELL FOR INSTANCE NORWEST CORP'S TOTAL LOAN PORTFOLIO IN IOWA HAS ONLY 5 IN AGRICULTURAL LOANS SAID DANIEL MARTIN A MIDWESTERN BANK ANALYST WITH STANDARD & POOR'S CORP BOATMEN'S BANCSHARES' AGRICULTURAL LOANS TOTAL JUST 38 OF ITS LOAN PORTFOLIO HE ADDED SMALLER COMMUNITY BANKS OFTEN HAVE A HIGHER PERCENTAGE OF FARM LOANS BUT THE MAJORITY ARE DEEMED TO BE IN EXCELLENT FINANCIAL HEALTH ANALYSTS SAY THE KEY FACTORS WORKING IN THE BANKS' FAVOR ARE LITTLE DIRECT EXPOSURE TO AGRICULTURE LOANS SOME GEOGRAPHIC DIVERSIFICATION AND STRONG CAPITAL LEVELS MR MARTIN SAID HE DID NOTE THAT SOME DETERIORATION IN LOAN QUALITY MAY OCCUR DUE TO SLOWER LOAN PAYMENTS AS AFFECTED CONSUMERS AND BUSINESSES GET BACK ON THEIR FEET MOST MIDWESTERN FARMERS ALSO ARE EXPECTED TO WEATHER THE FLOODS NEAL HARL IOWA STATE UNIVERSITY PROFESSOR OF ECONOMICS ESTIMATED THAT ONLY ABOUT 10 OF IOWA'S FARMERS WERE HARDPRESSED FINANCIALLY GOING INTO THE PLANTING SEASON THIS YEAR IT'S TOO EARLY TO SAY HOW MANY OF THEM WHO WERE HIT BY THE FLOODS MIGHT BE FORCED OFF THE FARM MANY WERE REQUIRED TO HAVE FLOOD INSURANCE BY THEIR LENDERS AND OTHERS MAY HAVE INCOME FROM LIVESTOCK AND JOBS OFF THE FARM MOSTLY HE SAID IT WILL DEPEND ON HOW MUCH FORBEARANCE THEY GET FROM THEIR LENDERS 9307160140 930716 WHO'S NEWS PPG INDUSTRIES TAPS JERRY E DEMPSEY AS FIRST OUTSIDER TO BE CHAIRMAN CHIEF BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH PPG INDUSTRIES INC REACHING TO AN OUTSIDER FOR THE FIRST TIME IN ITS HISTORY NAMED JERRY E DEMPSEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR DEMPSEY CURRENTLY CHAIRMAN OF CHEMICAL WASTE MANAGEMENT INC WILL SUCCEED VINCENT A SARNI WHO THIS MONTH TURNED 65 THE MANDATORY RETIREMENT AGE MR SARNI WHO REMAINS ON THE BOARD HAS SERVED AS CEO SINCE 1984 MR DEMPSEY WILL TAKE OVER SEPT 1 IN SELECTING MR DEMPSEY DIRECTORS AT THE GLASS CHEMICALS AND PAINT COMPANY BYPASSED THREE INSIDERS WHO WERE CONSIDERED LEADING CONTENDERS FOR THE TOP JOB BUT INSTEAD OF KNOCKING THEM OUT OF THE RACE MR DEMPSEY'S APPOINTMENT EXTENDS THE FINISH LINE MR DEMPSEY WHO WILL BE 61 YEARS OLD IN OCTOBER SAID HE EXPECTS TO RETIRE WHEN HE REACHES 65 LEAVING TIME FOR ONE OR MORE OF THE INSIDERS TO SUCCEED HIM THEY INCLUDE 54YEAROLD ROBERT D DUNCAN GROUP VICE PRESIDENT GLASS 46YEAROLD RAYMOND W LEBOEUF VICE PRESIDENT FINANCE AND RICHARD M ROMPALA GROUP VICE PRESIDENT COATINGS AND RESINS WHO ALSO IS 46 WE FELT THAT SEVERAL OF THOSE PEOPLE HAVE REAL POTENTIAL SAID HAROLD A MCINNES CHAIRMAN OF THE BOARD'S NOMINATING COMMITTEE BUT WE FELT IT WAS TOO EARLY TO SELECT ANY PARTICULAR ONE OF THEM FOR THE MAJOR RESPONSIBILITY OF CEO OF THAT SIZE CORPORATION ONE OF THE REASONS WE WENT WITH DEMPSEY WAS THAT HE HAS A VERY STRONG TRACK RECORD OF DEVELOPING SENIOR MANAGEMENT PEOPLE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PPG CLOSED AT 67125 UP 625 CENTS MR DEMPSEY SAID HE WANTS TO ACT AS A COACH AND MENTOR TO YOUNGER EXECUTIVES AT PPG I WANT TO WORK WITH THE MANAGEMENT TEAM TO PUT A SUCCESSOR IN PLACE WHEN I RETIRE BUT OBSERVERS SAID THE BOARD SENT A REJECTING MESSAGE TO MESSRS DUNCAN LEBOEUF AND ROMPALA THE MESSAGE IS THAT WE DON'T KNOW HOW TO GROW OUR OWN AND WE DON'T BELIEVE IN OUR OWN SAID ONE FORMER MANAGER MR SARNI REBUTTED THAT VIEW NOT IF THEY WORK FOR ME THEY WON'T GET THE WRONG MESSAGE HE SAID THIS IS MY TEAM AND IT'S A GOOD TEAM THIS IS JUST A TRANSITION MOVE STILL MR DEMPSEY FACES STIFF CHALLENGES AT PPG HE MUST CONTINUE MR SARNI'S RECORD OF BOOSTING PRODUCTIVITY AND SLASHING COSTS A STRATEGY THAT HAS KEPT PPG'S EARNINGS RELATIVELY HIGH COMPARED WITH COMPETITORS WHILE SOME OF ITS MARKETS HAVE SUFFERED FOR INSTANCE EUROPE WHICH AS RECENTLY AS 1990 MADE UP 22 OF OPERATING PROFIT IS MIRED IN A RECESSION LAST YEAR IT CONTRIBUTED JUST 14 OF OPERATING EARNINGS AND LOW PRICES CONTINUE TO PLAGUE THE COMPANY ESPECIALLY IN ITS CHEMICAL UNIT MOREOVER MR DEMPSEY COULD LOSE SOME OF HIS SENIOR MANAGEMENT TEAM WHO MAY LOOK FOR OPPORTUNITIES ELSEWHERE ESPECIALLY IF OTHER COMPANIES COME CALLING ANALYSTS SAID THE BOARD MAY HAVE SWEETENED THEIR INCENTIVE PACKAGES TO HEAD OFF THAT POSSIBILITY MR MCINNES SAID EXECUTIVE INCENTIVE PACKAGES ARE REVIEWED FROM TIME TO TIME THAT'S NOT SOMETHING WE HAVE TO PLAY CATCHUP WITH HE SAID THE LOWKEY MR DEMPSEY WHO SAID HE WAS FIRST CONTACTED ABOUT THE PPG POST IN NOVEMBER IS KNOWN AS A TEAM MANAGER WHO IS TOUGH WHEN IT COMES TO FINANCIAL PERFORMANCE ASSOCIATES SAY HE'S MORE OF A NUTSANDBOLTS BUSINESS MANAGER THAN A VISIONARY ANY TIME YOU HAVE AN OPPORTUNITY TO RUN A COMPANY OF THE REPUTATION OF PPG YOU HAVE TO BE INTERESTED SAID MR DEMPSEY WHO IS ALSO A SENIOR VICE PRESIDENT AT WMX TECHNOLOGIES INC WHICH OWNS A MAJORITY STAKE IN CHEMICAL WASTE HE JOINED WASTE MANAGEMENT INC NOW CALLED WMX TECHNOLOGIES IN 1984 AS VICE CHAIRMAN WITH RESPONSIBILITIES FOR STRATEGIC PLANNING HIS DIVERSIFICATION PLAN RESULTED IN THE COMPANY'S PUSH INTO HAZARDOUS WASTE A BUSINESS THAT BECAME CHEMICAL WASTE WHERE HE WAS NAMED PRESIDENT AND CEO IN 1985 IN SEPTEMBER 1991 HE BECAME CHAIRMAN AND BEGAN FOCUSING ON PUSHING BOTH CHEMICAL WASTE AND WMX INTO MEXICO A COUNTRY HE SAID HAS MUCH POTENTIAL THE SOUTH CAROLINA NATIVE STARTED HIS CAREER AT BORGWARNER CORP IN 1956 AS A STUDENT ENGINEER AND ROSE TO PRESIDENT AND CHIEF OPERATING OFFICER IN 1979 BUT HE LEFT IN 1983 AFTER A SPLIT WITH THENCHAIRMAN JAMES F BERE YESTERDAY PPG REPORTED ESSENTIALLY FLAT SECONDQUARTER NET INCOME OF 1062 MILLION OR 1 A SHARE DOWN FROM 1067 MILLION OR 101 A SHARE SALES INCHED UP TO 152 BILLION FROM 151 BILLION 9307160139 930716 ECONOMY INVENTORIES ROSE BY 02 IN MAY US DATA SHOW BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUSINESS INVENTORIES ROSE FOR THE EIGHTH CONSECUTIVE MONTH IN MAY CLIMBING 02 TO 86427 BILLION ACCORDING TO THE COMMERCE DEPARTMENT HOWEVER ECONOMISTS DON'T SEEM TO BE WORRIED ABOUT THE STEADY RISE IN COMPANY STOCKPILES ESPECIALLY SINCE SALES ROSE A MORE ROBUST 03 TO 58690 BILLION DURING THE SAME PERIOD WE ARE NOT GETTING ANY EVIDENCE THAT INVENTORIES ARE OUT OF CONTROL SAYS GARY CIMINERO CHIEF ECONOMIST AT FLEET FINANCIAL GROUP IN RHODE ISLAND MANUFACTURERS HAVE BEEN KEEPING A CLOSE EYE ON INVENTORIES SO THAT THEY AREN'T STUCK WITH A LOT OF EXTRA MERCHANDISE THAT IS HARD TO SELL AND LOWERS PROFIT MARGINS EXCESS INVENTORIES ALSO TEND TO LOWER PRODUCTION AND EMPLOYMENT GAINS THE INVENTORYTOSALES RATIO WHICH IS THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES PACE REMAINED AT 147 THE SAME AS IN APRIL IN A SEPARATE REPORT FROM THE LABOR DEPARTMENT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE 2000 IN THE WEEK ENDED JULY 10 TO 334000 FROM A REVISED 332000 THE PREVIOUS WEEK THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH ANALYSTS FEEL IS A BETTER MEASURE OF LABOR MARKET CONDITIONS WAS 339000 DOWN FROM 341750 FOR THE PREVIOUS WEEK THE LARGEST INCREASES IN CLAIMS DURING THE WEEK ENDED JULY 3 WERE IN NEW YORK AND ILLINOIS THE BIGGEST DROP OCCURRED IN RHODE ISLAND ALL FIGURES EXCEPT FOR THOSE FROM INDIVIDUAL STATES HAVE BEEN ADJUSTED FOR SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN MAY THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9307160138 930716 CITICORP DEBT RATING IS RAISED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON CITICORP'S DEBT CITING THE BANK'S IMPROVED EARNINGS AND SUBSTANTIALLY LOWER LOAN LOSSES AND LOSS PROVISIONS ABOUT 28 BILLION OF DEBT IS AFFECTED CITICORP'S SENIOR LONGTERM DEBT RATING WAS RAISED TO BAA1 FROM BAA2 AND ITS SUBORDINATED LONGTERM DEBT TO BAA2 FROM BAA3 CITICORP'S COMMERCIAL PAPER RATING ALSO WAS RAISED TO PRIME2 FROM PRIME3 ITS CUMULATIVE PREFERRED STOCK WAS RAISED TO BAA2 FROM BA1 AND NONCUMULATIVE PREFERRED STOCK TO BAA3 FROM BA2 THE RATINGS OF CITICORP'S SUBSIDIARY BANKS INCLUDING CITIBANK NA WERE CONFIRMED MOODY'S SAID THE UPGRADES REFLECT ITS EXPECTATION THAT CITICORP WILL BE ABLE TO SUSTAIN AN IMPROVING EARNINGS TREND THUS ALLOWING THE COMPANY TO CONTINUE BUILDING CAPITAL LEVELS ALTHOUGH CITICORP'S LOSS RESERVES ARE LOW BY INDUSTRY STANDARDS RESERVEBUILDING EFFORTS AREN'T AS URGENT AS THEY ONCE WERE ALLOWING FOR MUCH LOWER LOSS PROVISIONS THAN IN 1991 AND 1992 MOODY'S SAID THE UPGRADE ALSO RECOGNIZES THE VALUE OF CITICORP'S KEY FRANCHISES IN CORPORATE AND CONSUMER BANKING IN THE US AND ABROAD MOODY'S SAID STRONG CORE PROFITABILITY FROM THESE BUSINESSES HAS BEEN ENHANCED BY CITICORP'S AGGRESSIVE COSTCUTTING EFFORTS IN RECENT YEARS MOODY'S ADDED FURTHER THE TOTAL OF CITICORP'S NONPERFORMING ASSETS IS DECLINING ALTHOUGH SLOWLY AND THE INFLOW OF NEW NONPERFORMING LOANS HAS DIMINISHED DESPITE THE FAVORABLE FACTORS MOODY'S NOTED THAT CITICORP'S RATINGS TAKE INTO CONSIDERATION THAT ITS ASSETS REMAIN SIGNIFICANTLY IMPAIRED WITH A HIGH PROPORTION OF COMMERCIAL REAL ESTATE LOANS AND FORECLOSED PROPERTIES ALSO CITICORP'S CAPITAL LEVELS ARE EXPECTED TO REMAIN LOW RELATIVE TO THE US BANKING INDUSTRY AND LOW IN RELATION TO THE HIGH RISK OF ITS ASSET MIX MOODY'S CONCLUDED 9307160137 930716 AVONDALE INDUSTRIES CONTRACT NEW ORLEANS AVONDALE INDUSTRIES INC SAID IT RECEIVED A 2325 MILLION CONTRACT TO BUILD A US COAST GUARD ICEBREAKER SHIP THE VESSEL IS SCHEDULED FOR DELIVERY IN 1997 AVONDALE SPECIALIZES IN BOAT CONSTRUCTION AND IS A REPAIR CONTRACTOR FOR COMMERCIAL AND NAVY SHIPS 9307160136 930716 RESULTS MIXED FOR FOREST PRODUCTS FIRMS WOOD SECTOR HOLDS UP AS PAPER SLUMPS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL FOREST PRODUCTS COMPANIES REPORTED MIXED SECONDQUARTER RESULTS AS WOODPRODUCTS SEGMENTS HELD UP AMID HIGHER PRICES WHILE PAPER AND PULP CONCERNS WERE LARGELY MIRED IN A CONTINUING SLUMP WEYERHAEUSER CO A TACOMA WASH COMPANY WITH A HEAVY CONCENTRATION IN WOOD PRODUCTS SAID ITS EARNINGS NEARLY DOUBLED FROM A YEAR EARLIER GEORGIAPACIFIC CORP ATLANTA ALSO HAS EXTENSIVE WOOD BUSINESS BUT REPORTED A LOSS BECAUSE OF A ONETIME CHARGE PAPERINTENSIVE COMPANY BOISE CASCADE CORP BOISE IDAHO REPORTED A NARROWED LOSS AND POTLATCH CORP SAN FRANCISCO SAID ITS PROFITS PLUNGED TO NEAR BREAKEVEN THE LACKLUSTER PERFORMANCE FOR MANY OF THE COMPANIES CAME AS LITTLE SURPRISE TO ANALYSTS WHOSE EXPECTATIONS FELL IN LINE WITH RESULTS GEORGIAPACIFIC'S STOCK CLOSED AT 60125 DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BOISE CASCADE SHARES FELL 125 CENTS TO 22625 WHILE POTLATCH CLOSED AT 43625 UP 125 CENTS WEYERHAEUSER'S STOCK DROPPED 1125 TO 4025 ON THE BIG BOARD WEYERHAEUSER SAID ITS STOCK APPARENTLY FELL AFTER PRESIDENT JOHN W CREIGHTON JR SAID IN A PRESS RELEASE THAT THIRDQUARTER PROFITS ARE EXPECTED TO FALL SIGNIFICANTLY FROM THE FIRST AND SECOND QUARTERS DUE TO WEAKENING DEMAND FOR A NUMBER OF PRODUCTS 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 MANY ANALYSTS EXPECT HOUSING STARTS TO IMPROVE SUBSTANTIALLY AFTER A WEAK FIRST HALF AND SAY DEMAND FOR LUMBER AND OTHER WOOD PRODUCTS SHOULD STRENGTHEN THAT SHOULD IN TURN BOOST PRICES BACK UP BECAUSE WOOD IS IN SHORT SUPPLY FROM TIMBERCUTTING RESTRICTIONS IN THE PACIFIC NORTHWEST FOLLOWING A WORLDWIDE RECESSION PRICES ON MANY PAPER AND PULP PRODUCTS HAVE FALLEN AS MUCH AS 40 SINCE THE LATE 1980S BLEAK AS THINGS HAVE BEEN FOR THE SEGMENT THERE APPEARS TO BE LIGHT AT THE END OF THE TUNNEL PRICES ON MANY PULP AND PAPER PRODUCTS APPEAR TO HAVE BOTTOMED OUT AND IN FACT THERE HAVE BEEN MODEST INCREASES IN KEY PRODUCTS SUCH AS NEWSPRINT AND PAPER FOR OFFICES AND MAGAZINES WEYERHAEUSER'S NET INCOME SOARED TO 1815 MILLION OR 89 CENTS A SHARE ON SALES OF 239 BILLION A YEAR EARLIER IT HAD A PROFIT OF 929 MILLION OR 45 CENTS A SHARE ON SALES OF 235 BILLION THE RECENT RESULTS INCLUDE A ONETIME GAIN OF 36 MILLION OR 18 CENTS A SHARE ON THE SALE OF THE COMPANY'S GNA CORP SUBSIDIARY GEORGIAPACIFIC POSTED A LOSS OF 3 MILLION OR THREE CENTS A SHARE INCLUDING A ONETIME CHARGE OF 8 MILLION OR NINE CENTS A SHARE FROM THE EARLY RETIREMENT OF DEBT ITS LOSS COMPARED WITH A YEAREARLIER PROFIT OF 4 MILLION OR FOUR CENTS A SHARE SALES IN THE QUARTER ROSE 52 TO 321 BILLION FROM 305 BILLION THE COMPANY'S PULP AND PAPER PRODUCTS SEGMENT RECORDED AN OPERATING LOSS OF 14 MILLION COMPARED WITH A YEAREARLIER PROFIT OF 26 MILLION THE LOSS HOWEVER WAS AN IMPROVEMENT OVER THE 67 MILLION LOSS IN THAT SEGMENT IN THE FIRST QUARTER OF 1993 BOISE CASCADE REPORTED A LOSS OF 171 MILLION OR 72 CENTS A SHARE SHARPLY NARROWED FROM THE YEAREARLIER LOSS OF 454 MILLION OR 139 A SHARE SALES ROSE 56 TO 974 MILLION FROM 9222 MILLION RESULTS INCLUDED A GAIN OF 5 MILLION OR 13 CENTS A SHARE TO REFLECT THE IMPACT OF A RECENTLY LOWERED CANADIAN TAX RATE POTLATCH SAID ITS NET INCOME PLUNGED TO 28 MILLION OR NINE CENTS A SHARE FROM 347 MILLION OR 119 A SHARE SALES DIPPED TO 3266 MILLION FROM 3284 MILLION BESIDES SUFFERING FROM THE LOW PULP AND PAPER PRICES THE COMPANY SAID EARNINGS WERE DEPRESSED FROM AN UNEXPECTEDLY LONG SHUTDOWN OF ONE OF ITS PULP MILLS 9307160135 930716 STOCK AGENCY SUSPECTS FRAUD IN FERRUZZI LOSS SPECIAL TO THE WALL STREET JOURNAL MILAN ITALY'S STOCK MARKET REGULATORY AGENCY HAS DENOUNCED THE FERRUZZI FINANZIARIA SPA GROUP TO MAGISTRATES FOR FALSE COMMUNICATIONS AND POSSIBLE BALANCESHEET FRAUD AFTER THE AGROINDUSTRIAL GIANT SPRUNG NEWS OF WIDENED CONSOLIDATED LOSSES ON SHAREHOLDERS WITHOUT SUFFICIENT EXPLANATION THE AGENCY CONSOB WENT TO MAGISTRATES AFTER ITS OWN INVESTIGATION INDICATED FERRUZZI MAY HAVE BROKEN THE LAW CONSOB AND MILAN MAGISTRATES BOTH STARTED INVESTIGATING AFTER MANAGERS OF FERRUZZI'S KEY SUBSIDIARY MONTEDISON SPA ANNOUNCED JUST BEFORE ITS SHAREHOLDERS MEETING JUNE 28 THAT MONTEDISON'S 1992 LOSSES WERE HEAVIER THAN IT HAD DISCLOSED IN ACCOUNTS PREVIOUSLY PUBLISHED AND APPROVED BY AUDITOR PRICE WATERHOUSE MONTEDISON ATTRIBUTED THE WIDENING OF ITS CONSOLIDATED LOSS TO 435 BILLION LIRE 2724 MILLION FROM 320 BILLION LIRE TO LOSSES AT ONE OF ITS SWISSBASED FINANCIAL HOLDING COMPANIES MONTEDISON INTERNATIONAL HOLDING BUT IT DIDN'T ELABORATE THE NEW LOSSES STUNNED FINANCIAL ANALYSTS AND FURTHER ERODED CREDIBILITY OF THE GROUP ALREADY STAGGERING UNDER TOTAL DEBTS OF SOME 30 TRILLION LIRE AND THE OBJECT OF A RESTRUCTURING BY ITS CREDITOR BANKS LAST WEEK PRICE WATERHOUSE REVOKED ITS APPROVAL OF FERRUZZI'S 1992 ACCOUNTS AN INDIVIDUAL CLOSE TO PRICE WATERHOUSE SAID THAT WHILE AS PRINCIPAL AUDITOR IT EXAMINED MANY OF THE SUBSIDIARIES OF THE COMPLEX FERRUZZI GROUP IT HADN'T LOOKED AT ALL OF THEM FERRUZZI IS MADE UP OF A COMPLICATED TANGLE OF HOLDING COMPANIES BASED AROUND THE WORLD SUSPICIONS OF BALANCESHEET FRAUD HAVE PROVOKED RUMORS ON FINANCIAL MARKETS IN PAST WEEKS THAT FERRUZZI'S POWERFUL FORMER MANAGERS WHO HAVE NOW BEEN SUCCEEDED BY MANAGERS APPOINTED BY THE POOL OF CREDITOR BANKS COULD BE ARRESTED ONE ANALYST SAID FERRUZZI'S RESTRUCTURING IS LIKELY TO BE STALLED UNTIL THE GROUP'S ACCOUNTS ARE IRONED OUT AND IT'S HARD TO KNOW HOW LONG THAT WILL TAKE THE RESTRUCTURING PROBABLY WILL INCLUDE SOME ASSET SALES AND POSSIBLY A DEBT FOR EQUITY SWAP MARCO NASCIMBENI A SALES ANALYST WITH MILAN'S PASFIN SPA SECURITIES HOUSE NOTED THAT IT WILL BE VIRTUALLY IMPOSSIBLE TO SELL ASSETS WHICH INCLUDE ASIDE FROM CORE AGROINDUSTRIAL ACTIVITIES CHEMICAL ENERGY INSURANCE AND CEMENT UNITS UNTIL FERRUZZI'S COMPLETE ACCOUNTS ARE AVAILABLE TO POTENTIAL BUYERS ANALYSTS AGREE THAT THE CAPTURE EARLIER THIS WEEK OF FORMER MONTEDISON CHAIRMAN GUISEPPE GAROFANO COULD SHED SOME LIGHT ON THE GROUP'S DEALINGS MR GAROFANO WAS ARRESTED IN BERN SWITZERLAND AND IS SCHEDULED TO RETURN TO ITALY BY TODAY AFTER HAVING EVADED A EUROPEWIDE WARRANT FOR HIS ARREST SINCE FEBRUARY ITALIAN POLICE FIRST ISSUED A WARRANT FOR MR GAROFANO FOR EMBEZZLEMENT WHILE HE WAS OUT OF THE COUNTRY ON BUSINESS HE NEVER RETURNED 9307160134 930716 WHO'S NEWS HAL INC CHAIRMAN UEBERROTH RESIGNS NO SUCCESSOR NAMED HONOLULU JOHN A UEBERROTH 49 YEARS OLD HAS RESIGNED AS CHAIRMAN OF HAL INC PARENT OF HAWAIIAN AIRLINES NO SUCCESSOR HAS BEEN NAMED MR UEBERROTH SAID THE MOVE WAS TO CLEAR THE RUNWAY FOR BRUCE R NOBLES 46 WHO SUCCEEDED HIM AS PRESIDENT AND CHIEF EXECUTIVE OFFICER IN JUNE TO COMPLETE THE COMPANY'S RESTRUCTURING MR UEBERROTH AND HIS BROTHER PETER THE FORMER MAJOR LEAGUE BASEBALL COMMISSIONER HEADED AN INVESTOR GROUP THAT TOOK OVER HAL IN 1990 THE COMPANY HAS RUN INTO HEAVY WEATHER INCLUDING A BLOATED COST STRUCTURE FARE WARS AND HEAVY OPERATING LOSSES HAL COMPLETED A MAJOR RESTRUCTURING LAST YEAR THAT REQUIRED BANKAMERICA CORP TO WRITE OFF MOST OF A 125 MILLION LOAN THE BANK INHERITED THE NOTE WHEN IT ACQUIRED SECURITY PACIFIC CORP IN APRIL 1992 IN THE FIRST QUARTER ENDED MARCH 31 HAL REPORTED A NARROWED LOSS OF 54 MILLION OR 94 CENTS A SHARE ON REVENUE OF 723 MILLION MOST OF THE IMPROVEMENT CAME FROM THE ELIMINATION OF AN UNPROFITABLE JAPAN ROUTE AS WELL AS THE RESTRUCTURING I FEEL GOOD ABOUT WHAT WE'VE ACCOMPLISHED IN THE LAST COUPLE OF YEARS MR UEBERROTH SAID IN A STATEMENT NEVERTHELESS THE MARKET HAS BEEN DOWN ON THE RESTRUCTURING WITH THE STOCK PLUNGING TO AROUND 3 FROM MORE THAN 8 IN THE FOURTH QUARTER OF 1992 IN LATE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE HAL WAS QUOTED AT 3 DOWN 4375 CENTS OR 13 THE COMPANY SAID MR UEBERROTH WILL CONTINUE AS A CONSULTANT AND IS LOOKING FORWARD TO SPENDING MORE TIME WITH HIS FAMILY 9307160133 930716 WHO'S NEWS MIDDLE EAST BROADCASTING CENTRE LTD MIDDLE EAST BROADCASTING CENTRE LTD LONDON UNITED PRESS INTERNATIONAL A UNIT NAMED L BREWSTER JACKSON CHIEF EXECUTIVE OFFICER HE WILL OVERSEE A REORGANIZATION OF THE INTERNATIONAL NEWS AGENCY SAID UPI WHICH HAS BEEN RUN BY A MANAGEMENT COMMITTEE SINCE ITS ACQUISITION LAST YEAR MR JACKSON WAS PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF HEALTHCARE SATELLITE BROADCASTING CO WHICH DELIVERS TEXT AND VIDEO DATA VIA SATELLITE TO COMPANIES INVOLVED IN HEALTH CARE 9307160131 930716 JOHN HANCOCK BACKS OLYMPICS ATLANTA JOHN HANCOCK FINANCIAL SERVICES SAID IT AGREED TO BECOME A SPONSOR OF THE 1996 OLYMPIC GAMES IN ATLANTA THE FIRST COMPANY TO SHARE A SPONSORSHIP WITH OTHERS IN ITS INDUSTRY TERMS WEREN'T DISCLOSED THE BOSTONBASED LIFE INSURER SAID IT WILL SHARE THE SPONSORSHIP WITH HEALTH AND PROPERTYANDCASUALTY INSURERS BILLY PAYNE PRESIDENT AND CHIEF EXECUTIVE OF THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES SAID THE COST OF SHARING IS EXPECTED TO EXCEED THE AVERAGE 40 MILLION COST OF SINGLECOMPANY SPONSORSHIPS HANCOCK IS DISCUSSING PROVIDING LIFE INSURANCE AND PENSION PROGRAMS TO WORKERS IN THE ATLANTA GAMES AND TO THE US OLYMPIC COMMITTEE HANCOCK ALSO GARNERS SPONSORSHIP RIGHTS TO NEXT YEAR'S WINTER OLYMPICS 9307160130 930716 LIBERTY CORP TO PURCHASE INSURER GREENVILLE SC LIBERTY CORP AN INSURANCE COMPANY SIGNED A DEFINITIVE PACT TO BUY NORTH AMERICAN NATIONAL CORP A COLUMBUS OHIO INSURER IN A TRANSACTION VALUED AT 51 MILLION UNDER TERMS OF THE ACQUISITION TO BE COMPLETED OCT 1 LIBERTY WOULD PAY 1475 FOR EACH OF NORTH AMERICAN'S 35 MILLION SHARES NORTH AMERICAN WITH ABOUT 25 MILLION IN ANNUAL PREMIUM INCOME PRIMARILY SELLS INSURANCE TO PREFUND FUNERALS LIBERTY HAS ABOUT 400 MILLION IN PREMIUM INCOME 9307160129 930716 MARKETING & MEDIA ADVERTISING ARRESTS TIED TO CORRUPTION CASE IN ITALY SHAKE MULTINATIONAL FIRMS BY LISA BANNON AND MAUREEN KLINE MILAN MULTINATIONAL AD AGENCIES ARE SWIFTLY SETTING UP DAMAGECONTROL TEAMS FOR THEIR ITALIAN OPERATIONS AFTER THE ARREST OF SEVERAL EXECUTIVES ON CORRUPTIONRELATED CHARGES THE CHAIRMAN OF PUBLICIS FCB/MAC AND THE CHIEF EXECUTIVE OFFICER OF YOUNG & RUBICAM ITALY HAVE BEEN PLACED UNDER HOUSE ARREST TWO DIRECTORS OF MILANBASED AGENCY ARMANDO TESTA SPA WERE ALSO ARRESTED AS WELL AS AN EMPLOYEE OF LOCAL MEDIA BUYER DAPS ALL OF THE EXECUTIVES WERE CHARGED WITH BREAKING POLITICAL PARTY FINANCING LAWS BY ALLEGEDLY PAYING KICKBACKS TO THE ITALIAN HEALTH MINISTRY THEY WERE COMPETING TO WIN A GOVERNMENT ADVERTISING CAMPAIGN AIMED AT INCREASING PUBLIC AWARENESS OF THE DANGERS OF AIDS THAT AMOUNTS TO MORE BAD NEWS FOR YOUNG & RUBICAM WHICH IS AMONG THE FIRST US COMPANIES TO BE CAUGHT UP IN THE CORRUPTION SCANDALS THAT HAVE WRACKED BUSINESS AND GOVERNMENT IN ITALY LAST MONTH THE BIG AD AGENCY FORCED OUT TWO TOP EXECUTIVES OF ITS LOGODESIGN SUBSIDIARY CYB YASUMURA DESIGN AMID REPORTS THAT THE US POSTAL SERVICE A DESIGN CLIENT WAS INVESTIGATING BILLING IMPROPRIETIES AT THE UNIT IN 1990 Y&R PLEADED GUILTY TO ONE COUNT OF CONSPIRACY AND PAID A 500000 FINE TO SETTLE FEDERAL CHARGES THAT IT HAD PAID KICKBACKS TO JAMAICA'S MINISTER OF TOURISM TO WIN THE JAMAICAN TOURISM BOARD ACCOUNT BACK IN 1981 IN ITALY OF COURSE PEOPLE ARE BY NOW USED TO THE STEADY STREAM OF ARRESTS IN THE CORRUPTION SCANDALS BUT THE ATTACK ON THE ADVERTISING INDUSTRY HAS INTERNATIONAL IMPLICATIONS WE'RE WORRIED ABOUT WHAT THIS MEANS FOR OUR FUTURE BUSINESS AND WHETHER OUR COMPETITORS WILL TRY TO USE THIS AGAINST US SAID AN EXECUTIVE OF ONE MULTINATIONAL AGENCY INVOLVED IN THE ALLEGATIONS IT LEFT EVERYBODY WITH A BAD TASTE IN THEIR MOUTHS THE ARRESTS PROMPTED NEW ITALIAN EXECUTIVE APPOINTMENTS AND LAUNCHED AN INDUSTRY DEBATE ABOUT ETHICS IN THE ADVERTISING INDUSTRY FOR SOME AGENCIES Y&R ITALY'S CHAIRMAN GAVINO SANNA TOLD AN ITALIAN MAGAZINE LAST WEEK BIDDING ON PUBLIC CONTRACTS WAS A LITTLE LIKE GOING TO A CASINO YOU CAN WIN OR YOU CAN LOSE BUT TO PLAY YOU HAD TO PAY THE ENTRANCE FEE IT APPEARS THAT IF YOU WANTED TO DO BUSINESS IN ITALY THAT'S THE WAY YOU HAD TO DO IT SAID JAMES DOUGHERTY ADVERTISING ANALYST WITH DEAN WITTER IN NEW YORK BUT IT LOOKS LIKE THAT ERA IS COMING TO AN END PUBLICIS FCB WHICH IS 49OWNED BY FOOTE CONE & BELDING OF CHICAGO QUICKLY SENT IN A TOP EUROPEAN EXECUTIVE TO REASSURE CLIENTS AND STAFF GERARD PEDRAGLIO EXECUTIVE VICE PRESIDENT OF EUROPEAN JOINT VENTURE PUBLICIS FCB COMMUNICATIONS EUROPE WAS NAMED MANAGING DIRECTOR OF THE ITALIAN SUBSIDIARY HE'LL MAKE SURE THE INTERESTS OF OUR CLIENTS AND SHAREHOLDERS ARE CONTROLLED AND PROTECTED SAID MAURICE LEVY CHAIRMAN OF THE FRENCHUS JOINT VENTURE IN PARIS HE'LL MAKE SURE THAT THE RULES OF ETHICS ARE CORRECTLY FOLLOWED AND THAT THERE ARE NO FURTHER PROBLEMS MR PEDRAGLIO WILL TAKE OVER RESPONSIBILITY FOR THE ITALIAN UNIT UNTIL THE CASE AGAINST CHAIRMAN CLAUDIO MASI DE VARGAS MACCIUCCA IS RESOLVED PUBLICIS FCB ALREADY HAS AN INTERNAL ETHICS CODE MR LEVY SAID BUT THE COMPANY IS NOW REVIEWING IT TO SEE WHETHER UPDATING IS NEEDED HE ALSO SAID MR PEDRAGLIO PLANS TO CONDUCT AN INDEPENDENT INVESTIGATION OF THE ITALIAN UNIT Y&R HAS APPOINTED CARLO D'INNELLA CURRENTLY GENERAL MANAGER OF Y&R ITALY AS INTERIM CHIEF EXECUTIVE OF THE ITALY OPERATION THE COMPANY SAID HE WILL OVERSEE OPERATIONS WHILE THE CASE AGAINST CHIEF EXECUTIVE UGO CASTELLANO IS PENDING OUR CLIENTS HAVE BEEN ASSURED THAT Y&R HAS A STRICT INTERNAL POLICY WHICH APPLIES IN ITALY AS WELL AS IN THE REST OF THE WORLD FORBIDDING THE KIND OF PAYMENTS WHICH ARE THE SUBJECT OF THE INVESTIGATION Y&R SAID IN A STATEMENT THAT POLICY HAS BEEN AND WILL CONTINUE TO BE VIGOROUSLY ENFORCED MARCO TESTA CHIEF EXECUTIVE OFFICER OF ARMANDO TESTA WHERE TWO AGENCY DIRECTORS HAVE BEEN ARRESTED IN THE FALLOUT SAID THE TESTA AGENCY WILL CONTINUE TO UTILIZE THE HARD WORK OF ALL ITS MEN AS IT HAS DONE FOR THE PAST 40 YEARS HE ADDED THAT WHILE HIS AGENCY IS BEING QUESTIONED ABOUT ITS GOVERNMENT BUSINESS WE KNOW WE CAN COUNT ON THE FAITH OF OUR CLIENTS 90 OF WHOM ARE IN THE PRIVATE SECTOR THE COMPANY WOULDN'T COMMENT ON WHETHER THE AGENCY WILL MAKE EXECUTIVE CHANGES AFTER THE ARREST OF THE TWO DIRECTORS BUT NOT EVERYONE IS CONVINCED THAT THINGS WILL CHANGE EASILY IN THE ITALIAN ADVERTISING COMMUNITY THERE'S A TRADITIONAL LACK OF TRANSPARENCY IN THE ITALIAN INDUSTRY THAT WILL BE HARD TO CHANGE OVERNIGHT SAID MARC FLEISHHACKER A MARKETING CONSULTANT IN MILAN INVOKING A COMMON ITALIAN EXPRESSION THAT ESSENTIALLY REFERS TO SHADY PRACTICES CLUB MED WHICH SEEMS TO CHANGE AGENCIES THE WAY OTHER CLIENTS CHANGE LIGHT BULBS IS MOVING ITS HIGHPROFILE ACCOUNT AGAIN THE RESORT OPERATOR IS EXPECTED TO NAME EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER TO ITS ESTIMATED 7 MILLION ACCOUNT PREVIOUSLY AT OMNICOM GROUP'S TBWA ADVERTISING ANTHONY SALERNO DIRECTOR OF ADVERTISING AND SALES PROMOTION FOR FOR CLUB MEDITERANEE SA'S CLUB MED SALES SAID THE COMPANY IS IN NEGOTIATIONS WITH ONE OF THREE NEW YORK AGENCIES PITCHING THE ACCOUNT MESSNER KIRSHENBAUM & BOND AND BLOOM FCA DECLINING TO IDENTIFY WHICH ONE HAD BEEN CHOSEN NO FINAL DEALS ARE MADE HE SAID KNOWLEDGEABLE INDUSTRY EXECUTIVES SAID THAT MESSNER WAS THE ONE SELECTED TBWA WON THE ACCOUNT TWO YEARS AGO IN A HOTLY CONTESTED REVIEW BEFORE THAT THE ACCOUNT WAS HANDLED BY ANOTHER NEW YORK AGENCY AMMIRATI & PURISEND A STATE APPEALS COURT IN SAN FRANCISCO BREATHED NEW LIFE INTO A SAN FRANCISCO LAWYER'S ATTEMPT TO SNUFF JOE CAMEL WITH A LAWSUIT CLAIMING THE SMOOTH CHARACTER ILLEGALLY PROMOTES CIGARETTES TO MINORS THE ASSOCIATED PRESS REPORTED JANET MANGINI CAN ATTEMPT TO PROVE THAT JOE THE CARTOON MASCOT OF RJR NABISCO HOLDINGS' CAMEL CIGARETTES VIOLATES CALIFORNIA LAWS BANNING ADS THAT ARE AGAINST PUBLIC POLICY OPPRESSIVE AND UNSCRUPULOUS AND HARMFUL TO CONSUMERS THE FIRST DISTRICT COURT OF APPEAL SAID WEDNESDAY A US SUPREME COURT RULING LAST YEAR PROHIBITED DAMAGE SUITS AGAINST CIGARETTE COMPANIES UNDER STATE LAW FOR FAILING TO WARN OF HEALTH RISKS BUT NOT FOR OTHER TYPES OF DECEPTIVE OR UNFAIR ADVERTISING THE SAN FRANCISCO COURT SAID A CAMPAIGN PROMOTING CIGARETTES TO MINORS WOULD BE UNFAIR ADVERTISING UNDER CALIFORNIA LAW THE STATE COURT SAID THE SUIT ALSO SEEKS TO STRIP REYNOLDS OF PROFITS IT HAS ALLEGEDLY MADE IN CALIFORNIA FROM SALES OF CIGARETTES TO MINORS AS A RESULT OF THE CAMPAIGN THE SUIT SAID SALES OF CAMELS TO TEENAGERS NATIONWIDE ROSE TO 476 MILLION IN 1992 FROM 6 MILLION IN 1988 WHEN THE ADVERTISING CAMPAIGN STARTED MARTIN GLICK A LAWYER FOR RJ REYNOLDS IN THE CASE COULD NOT BE REACHED FOR COMMENT JUDGE DONALD KING SAID MS MANGINI MUST PROVE A LINK BETWEEN THE CAMPAIGN AND SMOKING BY MINORS A CONNECTION THAT NO DOUBT WILL BE HOTLY CONTESTED BY REYNOLDS THE COMPANY ALSO MAY ARGUE THAT ITS CAMPAIGN WAS CONSTITUTIONALLY PROTECTED BY FREEDOM OF EXPRESSION AN ISSUE THAT CANNOT BE RESOLVED AT THIS STAGE JUDGE KING SAID SPONSORSHIP JOHN HANCOCK FINANCIAL SERVICES A UNIT OF JOHN HANCOCK MUTUAL LIFE INSURANCE SAID IT SIGNED ON TO BECOME THE OFFICIAL LIFE INSURANCE SPONSOR OF THE US OLYMPIC TEAM IN 1994 AND 1996 AND OF THE 1996 SUMMER GAMES IN ATLANTA ADS PULLED KIRIN BREWERY OF JAPAN SAID IT HAS PULLED ALL OF ITS ADVERTISING TO TAKE RESPONSIBILITY FOR AN EXTORTION SCANDAL IN TOKYO IN WHICH FOUR EXECUTIVES HAVE BEEN ARRESTED THE EXECUTIVES WERE ARRESTED FOR ALLEGEDLY PAYING 30 MILLION YEN 279600 TO EIGHT RACKETEERS TO ENSURE A PEACEFUL ANNUAL SHAREHOLDERS' MEETING THE EIGHT ALLEGED RACKETEERS ALSO WERE ARRESTED A SPOKESWOMAN SAID THE RESTRICTION WOULD LAST FOR SOME TIME REFUSING TO SPECIFY THE DURATION 9307160128 930716 NATIONAL WESTMINSTER SAYS NEW JERSEY UNIT HAD 96 RISE IN NET SPECIAL TO THE WALL STREET JOURNAL LONDON NATIONAL WESTMINSTER BANCORP THE NEW JERSEY BANK OWNED BY BRITAIN'S NATIONAL WESTMINSTER BANK PLC REPORTED A 96 INCREASE IN SECONDQUARTER NET INCOME TO 698 MILLION NET CHARGES TOTALED 916 MILLION IN THE SECOND QUARTER COMPARED WITH 313 MILLION A YEAR EARLIER THE BANK SAID THE INCREASE WAS DUE PRIMARILY TO LOSSES ON THE SALE OF SEVERAL LARGE PROBLEM CREDITS NATWEST BANCORP'S TOTAL ALLOWANCE FOR LOAN LOSSES WAS 5445 MILLION OR 385 OF TOTAL LOANS OUTSTANDING AT JUNE 30 COMPARED WITH 6575 MILLION OR 463 OF TOTAL LOANS A YEAR EARLIER THE STRENGTHENING OF OUR CORE BUSINESS IS PROVIDING A MOMENTUM THAT WE EXPECT TO CONTINUE SAID JOHN TUGWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE US BANK THE US BANK WHICH REPORTED SEVERE LOAN PROBLEMS TWO YEARS AGO WAS A SIGNIFICANT FACTOR IN IMPROVED EARNINGS AT THE UK PARENT LAST YEAR 9307160127 930716 INTERNATIONAL RANK'S PRETAX PROFIT ROSE TO 1438 MILLION IN FISCAL FIRST HALF SPECIAL TO THE WALL STREET JOURNAL LONDON RANK ORGANISATION PLC BRITAIN'S LEADING LEISURE GROUP POSTED A PRETAX PROFIT OF 957 MILLION 1438 MILLION IN THE HALFYEAR ENDED MAY 15 THE COMPANY RESTATED ITS YEAREARLIER RESULT DOWN TO 198 MILLION FROM 94 MILLION AS A RESULT OF NEW ACCOUNTING TREATMENT OF LOSSES ON SOLD BUSINESSES RANK ALSO PROPOSED AN ENHANCED SHARE ALTERNATIVE TO ITS FULLYEAR DIVIDEND RANK PROPOSED TO PAY A SINGLE SPECIAL INTERIM DIVIDEND OF 31 PENCE ON SEPT 16 AND NO FINAL DIVIDEND THE INTERIM DIVIDEND WOULD CARRY AN OPTION FOR SHAREHOLDERS TO RECEIVE INSTEAD OF CASH NEW RANK SHARES THE COMPANY SAID THAT IF THE PROPOSAL IS REJECTED BY SHAREHOLDERS AT AN EXTRAORDINARY GENERAL MEETING IT WOULD PAY A 1025PENCE INTERIM DIVIDEND AND A 2075PENCE FINAL DIVIDEND THAT WOULD MAKE FOR THE SAME 31 PENCE FULLYEAR CASH DIVIDEND THE FOURTH YEAR IN A ROW THAT RANK'S PAYMENT HAS BEEN AT THAT LEVEL BUT SHAREHOLDERS WOULD RECEIVE THE BULK OF IT MUCH LATER A NUMBER OF UK COMPANIES HAVE OFFERED SHARE ALTERNATIVES TO CIRCUMVENT A CHANGE IN UK TAX LAW THAT HAS MADE CASH DIVIDENDS LESS VALUABLE TO PENSION FUNDS AND WEALTHY INDIVIDUALS BREAKING DOWN ITS DIFFERENT BUSINESSES RANK SAID VACATION AND HOTEL PROFIT FELL 47 TO 72 MILLION BECAUSE OF WEAKNESS AT RANK'S LONDON HOTELS THE COMPANY'S RECREATION DIVISION WHICH INCLUDES CASINOS AND BINGO PARLORS RAISED OPERATING PROFIT 13 TO 327 MILLION IN THE RECENT HALF THE LEISURE DIVISION INCLUDING HARD ROCK CAFES AND NIGHTCLUBS INCREASED PROFIT 41 TO 223 MILLION 9307160126 930716 REVIEW & OUTLOOK EDITORIAL CHINA'S GORBACHEV ZHU RONGJI HATES TO BE CALLED CHINA'S GORBACHEV AS HE OFTEN IS IN THE WESTERN PRESS THE GORBACHEV PARADIGM OF ECONOMIC DISARRAY AND THE DOWNFALL OF THE COMMUNIST PARTY IS NOT A MODEL HE WISHES TO EMULATE BUT MR ZHU DOES REMIND US OF MIKHAIL GORBACHEV NOT OF GORBACHEV THE REFORMER INDEED THE CREDENTIALS OF BOTH IN THIS REGARD ARE SUSPECT NO HE REMINDS US OF THE GORBACHEV WHO DECREED EVERGREATER POWERS FOR HIMSELF BUT THEN COULD NOT EXERCISE THEM AN INABILITY THAT REVEALED HOW HOLLOW THE AUTHORITY OF THE COMMUNIST PARTY HAD BECOME APPOINTED JULY 2 TO BE THE GOVERNOR OF WHAT PASSES IN CHINA FOR A CENTRAL BANK MR ZHU IS NOW IN CHARGE OF CHINA'S AGRICULTURAL INDUSTRIAL AND FINANCIAL POLICY HIS BRIEF IS TO COOL DOWN CHINA'S HIGHGROWTH HIGHINFLATION ECONOMY BUT THE GENIE THAT HAS SNUCK OUT OF CHINA'S FANTASY OF A FINANCIAL SYSTEM CANNOT BE PUT BACK IN REGARDLESS OF HOW MANY MORE TITLES MR ZHU ASSUMES CHANGES AT THE TOP DON'T MATTER MUCH WHEN THE BALANCE OF POWER HAS SHIFTED ELSEWHERE IN CHINA THE WRIT OF IMPERIAL EDICTS FROM ZHONGNANHAI SIMPLY DOES NOT EXTEND TO THE PLACES WHERE THE ECONOMIC ACTION IS TAKE TREASURY BONDS EVEN WHEN THE STATE RAISED THE BONDS' INTEREST RATE AND MADE PURCHASES COMPULSORY FOR STATE ENTERPRISES ONLY ABOUT TWOTHIRDS HAD BEEN SOLD BY YESTERDAY'S DEADLINE NOT SURPRISINGLY PEOPLE ARE SIMPLY REFUSING TO BUY BONDS THAT FALL SEVERAL POINTS SHORT OF THE 15 TO 20 INFLATION RATE IN CHINA'S CITIES THEY MAY SOON BE FORCED TO OR TAKE THE BANKS WAY BACK IN 1986 THE CENTRAL GOVERNMENT IMPOSED RESERVE REQUIREMENTS THAT SHOULD HAVE BEEN EASY TO DO BECAUSE CHINA'S BANKS ARE GOVERNMENTOWNED THEY ARE SUPPOSED TO FUNNEL CREDIT TO STATEOWNED ENTERPRISES MANY OF WHICH LOSE MONEY SOME OF THEM SPECTACULARLY YET EVEN THESE GOVERNMENT OWNED AND BRED ENTITIES HAVE DEFIED BEIJING WITH IMPUNITY DESPITE THE RESERVE REQUIREMENTS BANKS HAVE LENT WITH SUCH ABANDON THAT THEY ARE SHORT OF READY CASH FOR THE THIRD STRAIGHT YEAR PEASANTS ALL OVER CHINA HAVE BEEN PAID FOR THEIR PRODUCE IN IOUS THEY ARE STILL WAITING FOR THEM TO BE HONORED OR AS THE ARTICLE ALONGSIDE ATTESTS BURNING THEM IN FRUSTRATION SEE RELATED STORY THE EMPEROR OF HEILONGCUN WSJ JULY 16 1993 MR ZHU HAS DEMANDED THAT BANKS RECALL ALL NONPRODUCTIVE LOANS WHICH ONE ANALYST ESTIMATES COME TO 30 BILLION NO ONE BELIEVES THAT THESE BILLIONS ARE GOING TO COME FLYING BACK TO CHINA'S BANKS WHICH PAY LOWERTHANINFLATION RATES OF INTEREST MOREOVER A SIGNIFICANT PORTION HAVE BEEN MADE TO MONEYLOSING STATEOWNED ENTERPRISES WHICH ARE HARDLY IN A POSITION TO PAY THEM BACK AND THE BANKS ARE SUPPOSED TO PROP UP THESE ENTERPRISES ANYWAY MR ZHU HAS FORBIDDEN LOCAL ENTERPRISES TO BORROW FUNDS OUTSIDE THE STATE BANKING SYSTEM FOR SHEER AMBITION THIS IS HARD TO TOP TELLING CHINA'S ENTREPRENEURS AND SPECULATORS TO STOP BORROWING IS LIKE TELLING A WAVE NOT TO BREAK ONE CHINESE ECONOMIST ESTIMATES THAT HALF THE MONEY SUPPLY IS BOUGHT AND SOLD UNDERGROUND IN BOOM TOWNS SUCH AS GUANGZHOU AND XIAMEN OVERSEAS SOURCES OF FINANCE ARE READILY AVAILABLE AND NOT LIKELY TO BE SNIFFED AT BECAUSE SOMEONE IN BEIJING SAYS NO DESPITE HIS FORCEFUL RHETORIC MR ZHU MAY FIND THE GROUND CUT FROM UNDER HIM IN OTHER WAYS MANY OF CHINA'S GLITZIEST SPECULATORS AND GREEDIEST ENTREPRENEURS THE TWO GROUPS OFFICIALLY BLAMED FOR THE COUNTRY'S FINANCIAL FIX HAVE FAMOUS LAST NAMES PARTY ELDERS THEIR CHILDREN AND NOW THEIR GRANDCHILDREN HAVE ALWAYS BEEN IN THE FRONT OF THE QUEUE FOR FINANCIAL FAVORS CUTTING THEM OFF MAY NOT BE AN OPTION IN SHORT THIS EFFORT TO RECENTRALIZE THE FINANCIAL SYSTEM FROM BEIJING CANNOT WORK WHEN DENG XIAOPING DECIDED TO OPEN UP CHINA'S ECONOMY IN 1978 THE GUIDING PRINCIPLE WAS TO DECENTRALIZE ECONOMIC AUTHORITY THE EFFECT HAS BEEN TO CREATE A COMPLEX OF FREE ENTERPRISES THAT IS BEYOND CONTROL IN ITS WORST FORM THIS ECONOMIC WARLORDISM AS ONE ANALYST CALLS IT CREATES PROVINCIAL MERCANTILISM WITH LOCALITIES LEVYING TAXES AND TARIFFS ON EACH OTHER AT ITS BEST IT GENERATES THE KIND OF CREATIVE CHAOS THAT SPEEDS THE TRANSITION FROM POVERTY TO PLENTY THE LARGER PROBLEM IS THAT WHEN CHINA ABANDONED THE OLD RULES OF MAOIST ECONOMICS IT FAILED TO BUILD NEW ONES OR AT BEST IT BUILT INADEQUATE ONES THIS IS THE DECISIVE LIMITING FACTOR IN REFORM THE LACK OF THE RULE OF LAW WHEN LAW IS WHAT LOCAL PARTY BOSS CHEN WEN SAYS IN ANY GIVEN WEEK OR WHAT THE POLITBURO MEMBER'S DAUGHTER CAN GET AWAY WITH IT'S NOT SURPRISING THAT ORDINARY CHINESE AND ENTERPRISES CAN'T BE BOTHERED TO OBEY THE RULES TO MANAGE THE TROUBLING CURRENTS WASHING AROUND CHINA'S ECONOMY THESE DAYS IT IS NECESSARY TO RATIONALIZE LAW NOT TO RECENTRALIZE UNFORTUNATELY FOR MR ZHU SUCH THINGS ARE NOT PART OF THE CHINESE COMMUNIST PARTY PLATFORM IF HE WANTS TO KNOW THE CONSEQUENCES OF FAILING TO DO SO HOWEVER WE SUGGEST HE ASK MR GORBACHEV 9307160124 930716 STOCK EXCHANGE IN MALAYSIA CITES 12 IN INVESTIGATION BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA THE KUALA LUMPUR STOCK EXCHANGE'S INVESTIGATION INTO TRADING OF UNION PAPER HOLDINGS BHD SHARES IDENTIFIED 12 INVESTORS WHO ALLEGEDLY SOLD STOCK THEY DIDN'T OWN DATUK NIK MOHAMED DIN NIK YUSOFF EXECUTIVE CHAIRMAN OF THE KLSE SAID THE 12 INVESTORS APPARENTLY SOLD 3320000 UNION PAPER SHARES THROUGH EIGHT MALAYSIAN BROKERAGE FIRMS HE DECLINED TO IDENTIFY THE INVESTORS OR THEIR BROKERS CITING THE PENDING INVESTIGATION THE EXCHANGE HAS BEEN UNABLE TO DETERMINE WHETHER THE INVESTORS WERE INVOLVED IN SHORT SELLING OF SHARES IN THE PAPER MILLER LISTED AMONG THE EXCHANGE'S SMALLCAPITALIZATION STOCKS SUCH TRANSACTIONS WHICH ARE ILLEGAL IN MALAYSIA BUT NONETHELESS OCCUR WITH SOME FREQUENCY INVOLVE AN INVESTOR SELLING BORROWED SHARES IN THE HOPE OF PROFITING BY BUYING AN EQUAL NUMBER OF SHARES AT A LOWER PRICE TO REPLACE THE BORROWED STOCK DATUK NIK DIN'S COMMENTS MARKED THE FIRST PUBLIC STATEMENT FROM AN EXCHANGE OFFICIAL ON THE EPISODE SINCE UNION PAPER'S SHARE PRICE JUMPED TO 23 MALAYSIAN DOLLARS US894 IN MIDJUNE FROM M173 EARLIER THIS YEAR THE STOCK WAS DRIVEN BY SPECULATION THAT THE COMPANY WAS TARGETED FOR A TAKEOVER BY A COOPERATIVE LINKED TO MALAYSIA'S DOMINANT POLITICAL PARTY THE UNITED MALAYS NATIONAL ORGANIZATION THE SHARES FELL SHARPLY AFTER THE COOPERATIVE ANNOUNCED THAT IT WAS DEFERRING PLANS TO ACQUIRE A VEHICLE FOR ITS PUBLIC LISTING TRADING IN UNION PAPER WAS SUSPENDED ON JUNE 29 AFTER THE EXCHANGE DECLARED THAT THE STOCK HAD BEEN CORNERED BY AN INDIVIDUAL OR A GROUP WITH THE AIM OF PUSHING THE PRICE HIGHER AS OTHER INVESTORS ATTEMPTED TO COVER THEIR OWN SHORT POSITIONS IN THE STOCK THE EXCHANGE CONCLUDED THIS AFTER ROUTINE EFFORTS BY THE EXCHANGE AND BROKERS FAILED TO OFFSET TRADING DEFAULTS BY OFFERING TO BUY SHARES IN THE COMPANY AT A PREMIUM TO THE PREVAILING MARKET PRICE A WEEK AGO THE EXCHANGE INITIATED A BUY IN PROCEDURE TO REDRESS DEFAULTS ON TRADES IN UNION PAPER STOCK BY PURCHASING 3320000 SHARES NEEDED TO SATISFY DISHONORED PURCHASES OF THE COMPANY'S SHARES THE EXERCISE QUICKLY WAS COMPLETED AT A FIXED PRICE OF M1520 A SHARE A 25 PREMIUM TO THE LATESTTRADED M1220 PRICE THE 43 BROKERAGE FIRMS THAT FAILED TO PROVIDE THE STOCK ASSUMED THE COST OF THE EXERCISE AND ARE FREE TO SEEK COMPENSATION FROM THEIR CLIENTS WHO INITIALLY RENEGED ON THEIR SALES THE INCIDENT THE FIRST OF ITS KIND ON THE KLSE SINCE THE LATE 1970S HAS BEEN ONE OF THE FACTORS DAMPING TRADING ACTIVITY ON THE EXCHANGE THIS EPISODE HAS HAD SOME EFFECT ON THE STOCK MARKET SAID DATUK NIK DIN I CAN'T EVEN GO OUT TO HAVE A PEACEFUL MEAL WITHOUT SOMEBODY COMING UP TO ME TO TALK ABOUT UNION PAPER TUESDAY THE EXCHANGE'S COMPOSITE INDEX FELL 396 POINTS TO CLOSE AT 71886 ON VOLUME OF 127000000 SHARES ABOUT THE LEVEL BEFORE THE START OF A POSTFEBRUARY RALLY THAT BROUGHT RECORD VOLUMES AND SKYROCKETING PRICES THE ANTICIPATED LIFTING OF THE TRADING SUSPENSION OF UNION PAPER'S SHARES AFTER THE BUYIN EXERCISE HASN'T MATERIALIZED DATUK NIK DIN SAID THE EXCHANGE HOPES TO DETERMINE BY THE END OF THIS WEEK WHEN TRADING CAN RESUME ANALYSTS EXPECT THE SHARES TO FALL WELL BELOW THE M1520 BUYIN PRICE OF THE 12 INVESTORS IDENTIFIED IN THE INVESTIGATION ONE ALLEGEDLY ACCOUNTED FOR MORE THAN A THIRD OF THE 3320000 SHORTFALL LEAVING UNSATISFIED PURCHASE ORDERS DATUK NIK DIN SAID ANOTHER ALLEGEDLY ACCOUNTED FOR AS FEW AS 5000 SHARES TO DATE THE EXCHANGE HAS FAILED TO PERSUADE ANY OF THE INVESTORS TO DISCUSS THEIR TRANSACTIONS DATUK NIK DIN SAID STOCKBROKING CLIENTS AREN'T OBLIGATED TO COOPERATE WITH THE EXCHANGE BUT HE NOTED THAT RELEVANT GOVERNMENT AUTHORITIES WITH POLICING POWER SUCH AS THE SECURITIES COMMISSION THE ATTORNEY GENERAL'S CHAMBERS AND THE POLICE DEPARTMENT'S COMMERCIAL CRIME UNIT ARE INVESTIGATING THE EPISODE WE CANNOT PASS JUDGMENT AT THIS STAGE DATUK NIK DIN SAID WE CANNOT ANNOUNCE THAT THERE WAS SHORT SELLING THERE ISN'T THE EVIDENCE WE COULD BE SUED FOR DEFAMATION THE EXCHANGE'S EXECUTIVE CHAIRMAN ADDED THAT THE NAMES OF THE 12 INVESTORS ARE NOT FAMILIAR TO US HIS COMMENT MAY DISPELL WIDESPREAD SPECULATION THAT SEVERAL OF THE INVESTORS ARE WIDELY KNOWN CORPORATE FIGURES AND POLITICALLY WELLCONNECTED INDIVIDUALS 9307160122 930716 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY A SOUND FINANCIAL PLAN BEGINS WITH INSURANCE BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO PERSONAL FINANCES INSURANCE IS THE PART THAT MANY PEOPLE DISLIKE THE MOST BUT MOST PEOPLE ALSO RECOGNIZE THAT INSURANCE IS AN INDISPENSABLE COMPONENT SOME MIGHT SAY A NECESSARY EVIL IN MANAGING THEIR FINANCIAL AND FAMILY AFFAIRS RESPONSIBLY WHILE IT'S IMPOSSIBLE TO PREVENT SUCH TERRIBLE THINGS AS A BAD AUTO ACCIDENT OR A LOVED ONE'S DEATH INSURANCE LETS US CONTROL HOW MUCH WE ARE AFFECTED FINANCIALLY BY ANYTHING BAD THAT DOES HAPPEN SAYS VIRGINIA APPLEGARTH A FINANCIAL AND INSURANCE ADVISER IN BOSTON INDEED AN ADEQUATE INSURANCE SAFETY NET SHOULD BE IN PLACE BEFORE PEOPLE GET WRAPPED UP IN MORE ENJOYABLE ASPECTS OF PERSONAL FINANCE SUCH AS INVESTING YOU HAVE TO PROTECT YOURSELF AGAINST LOSS BEFORE YOU INVEST FOR GAIN MS APPLEGARTH SAYS BUT WHAT IS AN ADEQUATE SAFETY NET AND HOW DO YOU BUY THE NECESSARY INSURANCE AT A REASONABLE COST AND WITH MINIMAL FUSS THE KEY IS TO FOCUS ON WHAT'S MOST IMPORTANT AND TUNE OUT WHAT'S NOT WHETHER YOU ARE CONSIDERING NEW POLICIES OR REVIEWING THE COVERAGE YOU HAVE KEEP IN MIND THE FUNDAMENTAL ROLE OF INSURANCE TO PROTECT AGAINST A DEVASTATING FINANCIAL LOSS MAKE SURE TO HAVE ENOUGH COVERAGE FOR THE WORST THING THAT COULD HAPPEN SUCH AS THE FAMILY HOME BEING DESTROYED BY FIRE OR A BREADWINNER WITH YOUNG KIDS DYING TOMORROW THE WAY TO SAVE MONEY IS NOT TO SKIMP ON CATASTROPHIC COVERAGE BUT TO COMPARE POLICY TYPES AND COSTS YOU CAN ALSO SAVE BY RAISING DEDUCTIBLES ON HOMEOWNERS AND AUTOMOBILE POLICIES TO BEAR A LARGER PART OF THE EXPENSES YOURSELF IN THE REALM OF LIFE INSURANCE STEER CLEAR OF THE OVERHEATED WAR OF WORDS ABOUT WHICH TYPE OF COVERAGE IS BETTER AND ALSO THE INNUENDOES AND OVERSTATEMENTS OFTEN USED TO PUSH THE PRODUCT DO NOT BUY LIFE INSURANCE TO GET RICH DO NOT BUY LIFE INSURANCE TO SAVE TAXES DO NOT BUY LIFE INSURANCE THAT WILL NOT COST YOU ANYTHING BECAUSE OF THE SPECIAL WAY YOU ARE BUYING IT SAYS ELLIOT S LIPSON AN ATLANTA FINANCIAL PLANNER THE ACCOMPANYING ARTICLES DISCUSS SOME OF THE MOST IMPORTANT INSURANCE ISSUES FOR PEOPLE IN THEIR 20S AND 30S THEIR 40S AND 50S AND THOSE 60 AND OLDER HEALTH INSURANCE WHICH IS LIKELY TO SEE A SWEEPING OVERHAUL UNDER PRESIDENT CLINTON IS LARGELY EXCLUDED AS A STARTING POINT HERE ARE SOME KEY POINTERS THAT APPLY TO PEOPLE OF ALL AGES REVIEW THE COST AND ADEQUACY OF YOUR AUTO AND HOMEOWNERS INSURANCE EVERY FEW YEARS BE SURE TO COMPARE PREMIUM CHARGES AT A FEW INSURERS SOME COMPANIES CHARGE MORE THAN TWICE AS MUCH AS OTHERS FOR HOMEOWNERS POLICIES ACCORDING TO A RECENT SURVEY BY CALIFORNIA INSURANCE REGULATORS ALSO SELECT THE COMPANY AND AGENT FOR QUALITY OF SERVICE MANY STATE INSURANCE DEPARTMENTS RANK AUTO AND HOMEOWNERS INSURERS BY THE VOLUME OF CONSUMER COMPLAINTS CONSUMER REPORTS MAGAZINE RATES COMPANIES BASED ON THE SATISFACTION OF READERS WHO HAVE FILED CLAIMS SEE THE AUGUST 1992 ISSUE FOR AUTO INSURANCE AND SEPTEMBER 1989 FOR HOMEOWNERS IN REVIEWING POLICY FEATURES MAKE SURE YOU HAVE ENOUGH LIABILITY COVERAGE TO PAY UP IF YOU CAUSE AN AUTO ACCIDENT OR ARE SUED BY SOMEONE WHO TRIPS ON A RAKE ON YOUR FRONT LAWN FINANCIAL ADVISERS GENERALLY RECOMMEND AT LEAST 100000 OF LIABILITY COVERAGE IN YOUR HOMEOWNERS POLICY THE BODILY INJURY LIABILITY COVERAGE IN YOUR AUTO POLICY SHOULD BE AT LEAST 100000 PER PERSON AND 300000 PER ACCIDENT IF YOU HAVE SUBSTANTIAL ASSETS TO PROTECT ADD A SEPARATE UMBRELLA LIABILITY POLICY PROVIDING COVERAGE OF 1 MILLION OR MORE FOR AN EXTRA 100 OR 200 A YEAR YOUR HOMEOWNERS COVERAGE SHOULD BE EQUAL OR CLOSE TO THE COST OF REBUILDING YOUR HOME IF IT WERE TOTALLY DESTROYED ASK YOUR AGENT OR A LOCAL CONTRACTOR FOR HELP WITH A FIGURE NOTE THAT A HOME'S RESALE PRICE OFTEN EXCEEDS THE REBUILDING COST BECAUSE THE PRICE INCLUDES THE LAND BUT SOME FINE OLDER HOMES WOULD COST MORE TO RECONSTRUCT THAN THEY COMMAND AT SALE MOST POLICIES INSURE YOUR HOME FOR THE COST OF REPLACING IT BUT FURNITURE AND OTHER CONTENTS MAY BE COVERED ONLY AT THEIR LOWER ACTUAL CASH VALUE IT'S A GOOD IDEA TO PAY EXTRA TO GET REPLACEMENT COVERAGE FOR CONTENTS IN ADDITION SOME INSURERS WILL INCREASE YOUR POLICY AMOUNT ANNUALLY TO KEEP UP WITH REBUILDING COSTS OR OFFER A GUARANTEED REPLACEMENT OPTION THAT PAYS ALL REBUILDING COSTS EVEN IF THEY EXCEED THE POLICY AMOUNT CHECK HOW MUCH YOUR POLICY WOULD PAY FOR SPECIAL ITEMS SUCH AS JEWELRY FURS COINS AND HOME COMPUTERS STEP UP COVERAGE WITH POLICY ENDORSEMENTS OR SEPARATE FLOATER POLICIES IF YOUR HOLDINGS ARE WORTH MORE WHEN IT COMES TO AUTO INSURANCE ADVISERS CAUTION NOT TO SCRIMP ON UNINSURED MOTORIST AND UNDERINSURED MOTORIST COVERAGES THESE GENERALLY PAY FOR YOUR INJURIES IN A HITANDRUN ACCIDENT OR IF THE DRIVER AT FAULT HAS LITTLE OR NO INSURANCE OPT FOR THE SAME LIMITS AS ON THE BODILY INJURY PART YOU MAY BE ABLE TO SAVE 100 OR 200 A YEAR BY RAISING OUTOFPOCKET DEDUCTIBLES ON HOMEOWNERS AND AUTO COVERAGE PRICE IT OUT AND DO SOMETHING YOU ARE COMFORTABLE WITH MR LIPSON SUGGESTS ALSO CONSIDER DROPPING OPTIONAL COLLISION AND COMPREHENSIVE COVERAGE ONCE A CAR IS FIVE OR SIX YEARS OLD FIRST ASK THE AGENT WHAT YOU WOULD COLLECT IF THE CAR WERE TOTALED OR STOLEN FINALLY USE YOUR CAMERA VIDEO CAMERA OR A CHECKLIST FROM YOUR AGENT TO PREPARE AN INVENTORY OF YOUR HOUSEHOLD GOODS IF YOU HAVE TO FILE A CLAIM AFTER A FIRE OR THEFT YOU'LL HAVE CLEAR EVIDENCE OF WHAT WAS THERE SAYS MALCOLM A MAKIN A WESTERLY RI FINANCIAL PLANNER MANY PEOPLE DON'T GIVE ANY THOUGHT TO THE TYPE OF INSURANCE THAT WOULD REPLACE PART OF THEIR INCOME IF THEY WERE DISABLED BY ILLNESS OR ACCIDENT SOME JUST ASSUME THEY HAVE ADEQUATE DISABILITY COVERAGE THROUGH WORK WE TAKE OUR EARNING POTENTIAL PRETTY MUCH FOR GRANTED SAYS DAVID J BOHL A FINANCIAL PLANNER AND INSURANCE SPECIALIST WITH ACCOUNTANTS ARTHUR ANDERSEN & CO THE COST OF A COMPREHENSIVE DISABILITY POLICY CAN ALSO DISCOURAGE ONE FROM THINKING ABOUT IT PREMIUMS CAN BE 2 TO 3 OF INCOME OR MORE BUT THIS IS A TYPE OF COVERAGE MOST PEOPLE SHOULD CONSIDER FINANCIAL ADVISERS SAY SOME COMPANYPROVIDED PLANS PAY MINIMAL BENEFITS FOR ONLY FIVE YEARS FAR LESS THAN THE 60 OF PAY AT LEAST TO AGE 65 THAT MANY SPECIALISTS SUGGEST CONSIDER SUPPLEMENTAL POLICIES IF YOU HAVE NO COVERAGE AT ALL YOU ARE TAKING A SIGNIFICANT RISK MR BOHL SAYS IN THE COMPLEX AND CONFUSING WORLD OF LIFE INSURANCE STAY FOCUSED ON THE GOAL LIFE INSURANCE SHOULD BE PURCHASED FIRST AND FOREMOST TO PROVIDE FOR DEPENDENTS IN THE EVENT OF A BREADWINNER'S EARLY DEATH YOU DON'T NEED LIFE INSURANCE AT ALL IF NO ONE IS DEPENDENT ON YOUR INCOME BUT IF YOU DO HAVE DEPENDENTS IT IS CRITICAL THAT YOU HAVE ENOUGH COVERAGE TO PROVIDE FOR THEM IN THE EVENT OF CATASTROPHE GAUGE THE DEATH BENEFIT YOU NEED WITHOUT LOOKING AHEAD TO WHAT THAT COVERAGE MIGHT COST AND NEVER SKIMP ON THE AMOUNT OF COVERAGE IN ORDER TO BUY MORE EXPENSIVE TYPES OF POLICIES THAT OFFER A SAVINGS COMPONENT AS WELL AS THE BASIC DEATH BENEFIT LOOK FIRST AT TERM COVERAGE WHICH PAYS A SET DEATH BENEFIT IF YOU DIE WHILE THE POLICY IS IN FORCE THE ANNUAL CHARGE GOES UP EVERY YEAR OR ON SOME POLICIES IN BIG JUMPS EVERY FIVE OR 10 YEARS AT YOUNGER AGES IN PARTICULAR TERM LETS YOU GET WHAT YOU NEED FOR A VERY LOW COST SAYS MR MAKIN THE RHODE ISLAND PLANNER IN COMPARING TERM POLICIES ADD UP THE PROJECTED PREMIUMS OVER THE NUMBER OF YEARS YOU EXPECT TO NEED COVERAGE TWO INSURANCE BROKERS THAT SELL LOWCOST TERM OVER THE PHONE ARE SELECTQUOTE INSURANCE SERVICES 8003431985 AND INSURANCEQUOTE SERVICES 8009721104 BE WARY OF REENTRY POLICIES THAT REQUIRE YOU TO PASS A PHYSICAL EXAM AFTER SEVERAL YEARS TO CONTINUE TO QUALIFY FOR FAVORABLE RATES IF YOU'VE GOT THE CASH ALSO CONSIDER THE HIGHERPREMIUM CASHVALUE POLICIES SUCH AS WHOLE LIFE AND UNIVERSAL LIFE THESE CAN BE A GOOD INVESTMENT OVER MANY YEARS ADVISERS SAY BECAUSE SAVINGS WITHIN THE POLICIES GROW WITH NO IMMEDIATE TAX CASHVALUE PREMIUMS ARE DESIGNED AND SOMETIMES GUARANTEED TO REMAIN LEVEL FOR LIFE AND THESE POLICIES CAN BE CONTINUED TO AN ADVANCED AGE WHICH IS CRITICAL FOR SOME ESTATEPLANNING USES WHILE TERM INSURANCE GENERALLY CANNOT BE RENEWED PAST AGE 70 SOME PEOPLE BUY A MIX OF TERM AND CASHVALUE COVERAGE BUT BUY A CASHVALUE POLICY ONLY WITH EXTREME CAUTION AND ONLY IF YOU ARE ABSOLUTELY CERTAIN TO KEEP IT GOING FOR AT LEAST 15 YEARS OR TO DEATH PEOPLE LOSE THOUSANDS OF DOLLARS WHEN THEY DROP TYPICAL CASHVALUE POLICIES AFTER ONLY A FEW YEARS BECAUSE THEY FORFEIT HEFTY SUMS PAID OUT TO AGENTS AS SALES COMMISSIONS THAT'S WHERE THE MONEY IS LOST IN LIFE INSURANCE FAR MORE THAN IN INSOLVENCIES OF TROUBLED COMPANIES SAYS NEW YORK INSURANCE ADVISER GLENN S DAILY LIMIT YOURSELF TO COMPANIES THAT ARE VERY STRONG FINANCIALLY PARTICULARLY IF YOU ARE INVESTING THOUSANDS OF DOLLARS IN CASHVALUE COVERAGE MANY ADVISERS SUGGEST STICKING TO INSURERS THAT HAVE VERY HIGH RATINGS FROM AT LEAST TWO OF FOUR MAJOR RATINGS FIRMS AM BEST CO DUFF & PHELPS CORP MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP SEE RELATED STORIES MAKING THE RIGHT INSURANCE MOVES THROUGH THE AGES AND FIGURING OUT THE RIGHT AMOUNT OF COVERAGE FOR YOUR SURVIVORS WSJ JULY 16 1993