HULAH VALLEY ISRAEL IN THE 1950S THE NEW STATE OF ISRAEL'S FIRST GREAT NATIONAL PROJECT WAS THE DRAINING OF THE HULAH VALLEY SWAMPS TO RECLAIM THE LAND FOR AGRICULTURE TODAY A MULTIMILLIONDOLLAR PROJECT IS UNDER WAY TO BRING THE SWAMPS BACK THE PROJECT SPONSORED BY THE JEWISH NATIONAL FUND THE ISRAEL LANDS ADMINISTRATION AND THE MINISTRY OF AGRICULTURE CALLS FOR REFLOODING A PORTION OF THE LAND AND TURNING THE VALLEY'S CENTRAL SECTION INTO A NATURAL WETLANDS COMPLETE WITH A SAFARI PARK BOATING CANALS AND TOURIST BUNGALOWS BUILT RIGHT ON THE SWAMP AND REACHABLE BY SMALL BOATS AND BRIDGES THE DRAINING OF THE HULAH VALLEY WHICH LIES BETWEEN THE HILLS OF THE GALILEE AND THE GOLAN HEIGHTS ON THE SYRIAN BORDER CREATED ONE OF ISRAEL'S MOST ENDURING IMAGES THE JEWISH PIONEER FIGHTING MOSQUITOES AND MALARIA TO DIG DRAINAGE CANALS ACROSS THE VALLEY AND CARVE FARMS AND TOWNS OUT OF THE SWAMPS THE PIONEERS WERE HEROES AND PEOPLE OF ENORMOUS VISION AT THE TIME THERE WAS SIMPLY NO ALTERNATIVE TO THE DRAINING OF THE SWAMPS BUT IT'S CLEAR NOW THAT WHAT THEY DID CAUSED SOME SERIOUS ENVIRONMENTAL PROBLEMS SAYS AHARON VALENCY WHO HEADS THE UPPER GALILEE REGIONAL COUNCIL THE AUTHORITY REPRESENTING THE AREA'S KIBBUTZIM OR COLLECTIVE FARMS AFTER THE PROJECT'S COMPLETION IN 1958 THE HIGHLY FERTILE LAND CREATED FROM THE FORMER PEAT BOG WAS PROFITABLY CULTIVATED BY THE NEW FARMS AND SETTLEMENTS THAT SPRANG UP BUT OVER THE YEARS THE LAND STARTED SINKING AND THE GROUNDWATER LEVEL DROPPED AS THE PEAT DRIED OUT UNDERGROUND FIRES BROKE OUT HUGE DUST STORMS CLOGGED THE DRAINAGE CANALS AND THE AREA WAS OVERRUN WITH WEEDS AND MICE POLLUTANTS STREAMED INTO THE SEA OF GALILEE THE COUNTRY'S PRINCIPAL WATER RESERVOIR AND BY THE END OF THE 1980S 5000 ACRES OF LAND HAD BEEN ABANDONED AS UNFARMABLE WE'VE NOW DECIDED THAT IT'S BETTER NOT TO FIGHT THE SWAMP SAYS AMOS HARPAZ DIRECTOR OF JNF ACTIVITIES IN THE GALILEE REGION WHO AS A YOUNG MAN PARTICIPATED IN THE 1950S DRAINING EFFORT WE BELIEVE THAT ULTIMATELY TOURISM WILL BE MORE PROFITABLE THAN AGRICULTURE THERE THE PROJECT'S ESTIMATED COST IS 40 MILLION TO 50 MILLION SHEKELS 145 MILLION TO 18 MILLION TO BE PROVIDED BY THE JNF THE GOVERNMENT AND THE LOCAL COMMUNITY IN THE FIRST STAGE 500 ACRES WILL BE REFLOODED BUT WITHIN FIVE YEARS THE PROJECT IS EXPECTED TO COVER UP TO 2000 ACRES A LITTLE LESS THAN 10 OF THE LAND RECLAIMED IN THE 1950S FOR THE TIME BEING THE REST WILL REMAIN FARMLAND MR VALENCY OF THE UPPER GALILEE REGIONAL COUNCIL SAYS REFLOODING THE HULAH VALLEY WON'T SOLVE ALL OF THE REGION'S ECONOMIC PROBLEMS TOURISM CURRENTLY REPRESENTS ABOUT 3 OF THE REGION'S ECONOMY AND WE HOPE THE PROJECT WILL TRIPLE IT BUT TOURISM ISN'T ENOUGH HE SAYS WE NEED THE GOVERNMENT TO INVEST IN CREATING SMALL BUSINESSES AND HIGHTECH COMPANIES OPENING NEW SCHOOLS BUILDING BETTER ROADS AND OPENING AN INTERNATIONAL AIRPORT STILL HE ACKNOWLEDGES THAT FOR THE ECONOMICALLY DEPRESSED UPPER GALILEE REGION THE NEW DEVELOPMENT PROJECT OFFERS A CHANCE TO SAVE THE AREA'S FINANCIALLY STRAPPED FARMS MANY OF WHOSE ECONOMIC WOES WERE COMPOUNDED BY THE FACT THAT THE LAND THEY OWN IN THE HULAH VALLEY HAD BECOME UNFARMABLE SHABTAI GLASS FINANCIAL MANAGER OF KIBBUTZ GONEN ON THE EDGE OF THE HULAH VALLEY SAYS HIS KIBBUTZ IS STRUGGLING TO MAKE ENDS MEET WITH LIGHT INDUSTRY RAISING TURKEYS AND WORKING THE FIELDS BUT HE SAYS THE AVERAGE AGE OF OUR MEMBERS IS OVER 40 AND WE NEED TO THINK ABOUT LONGTERM SOLUTIONS WE'RE WILLING TO GIVE UP SOME OF OUR LAND AND WATER TO BUILD APPROPRIATE TOURISM PROJECTS SUCH AS A RESTAURANT AND A HOTEL EVEN SO ONLY A HANDFUL OF FARMS HAVE COME FORWARD WITH PROJECT IDEAS AND THE INITIAL UNWILLINGNESS OF FARMERS TO SEE THEIR FIELDS TURNED INTO A TOURIST PARK MEANT THAT THE FIRST STAGE OF THE PROJECT HAD TO BE SCALED BACK MANY OF THE FARMERS DON'T MAKE VERY MUCH MONEY FROM THEIR LAND BUT THEY'RE RELUCTANT TO GIVE IT UP BECAUSE EVEN UNDER THE BEST OF CIRCUMSTANCES THEY KNOW THEY WON'T SEE ANY MONEY FROM TOURISM FOR AT LEAST FOUR YEARS SAYS EZRA YASUR WHO FARMS IN THE HULAH VALLEY AND IS A LIAISON BETWEEN THE FARMERS AND THE PROJECT SPONSORS THESE ARE PEOPLE THAT WANT TO BE FARMERS NOT RESPONSIBLE FOR CLEANING UP AFTER TOURISTS AND BEING NICE TO EVERYONE WHO STAYS IN THEIR HOTEL IN THE CENTER OF THE HULAH VALLEY GROUND HAS ALREADY BEEN BROKEN FOR THE COMPLEX SYSTEM OF CANALS TO BE BUILT A STRONG SMELL OF SULFUR IS IN THE AIR AND WORKERS POINT OUT DARK SLASHES ON THE SOIL BEING BROUGHT UP BY THE BULLDOZERS A SIGN OF THE FIRES SMOLDERING UNDERNEATH THE FORMER SWAMP GIORA SHACHAM COORDINATOR OF THE PROJECT'S PLANNING TEAM SAYS HIS TEAM IS STILL WORKING OUT THE ENGINEERING KINKS WORK IS PROGRESSING SLOWLY BECAUSE THE CANALDIGGING MACHINES KEEP SINKING INTO THE BOG HE SAYS AND ENGINEERS ARE STILL STUDYING HOW TO ENSURE THAT THE WATER IN THE LAKE AND CANALS MOVES CONTINUOUSLY SO MOSQUITOES WON'T BREED AND BOTHER THE TOURISTS IN SOME WAYS IT'S JUST LIKE 40 YEARS AGO WHEN THE PIONEERS DRAINED THE SWAMPS AND DIDN'T KNOW WHAT THE CONSEQUENCES WOULD BE SAYS MR YASUR WHO LIVES ON A NEARBY KIBBUTZ THE FARMERS DON'T KNOW WHAT THE RESULTS WILL BE FROM REFLOODING THE HULAH BUT THEY'LL COME AROUND IN THE END MOST OF THEM REALIZE THAT JUST LIKE IT WAS FOR THE FIRST PIONEERS HERE THEY DON'T HAVE ANY ALTERNATIVE 9307160120 930716 THURSDAY'S MARKETS STOCKS' RALLY COOLS AND SURGE BY BONDS STALLS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE STOCK MARKET'S BLISTERING RALLY COOLED YESTERDAY LEAVING PRICES MIXED BOND PRICES EDGED HIGHER AFTER WEDNESDAY'S SHARP ADVANCE THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE ROSE 838 POINTS TO 355093 LESS THAN FOUR POINTS FROM ITS ALLTIME HIGH OF 355483 STANDARD & POOR'S 500STOCK INDEX FELL 086 TO 44922 THE NASDAQ COMPOSITE INDEX RETREATED FROM ITS RECORD HIGH WEDNESDAY CLOSING AT 70869 DOWN 380 INDIVIDUAL STOCKS GRABBED THE LIMELIGHT JP MORGAN GAINED 1 7/8 TO 71 3/4 AFTER REPORTING BETTERTHANEXPECTED SECONDQUARTER EARNINGS AND MINNESOTA MINING & MANUFACTURING JUMPED 2 1/4 TO 110 DRUG STOCKS SLUMPED AFTER SMITH BARNEY LOWERED ITS INVESTMENT RATING ON THE GROUP MERCK SANK 1 TO 33 3/4 AND BRISTOLMYERS SQUIBB LOST 2 1/8 TO 58 THOUGH INVESTORS TOOK A BREATHER FROM WEDNESDAY'S FEVERISH BUYING MANY ANALYSTS REMAIN UPBEAT ABOUT THE SUMMER OUTLOOK FOR THE STOCK AND BOND MARKETS THE UNDERLYING FUNDAMENTALS FOR THE FINANCIAL MARKETS ARE REAL GOOD INTEREST RATES ARE COMING DOWN AND EARNINGS ARE MOVING UP SAID ROBERT A VON PENTZ CHIEF INVESTMENT OFFICER AT RIGGS INVESTMENT MANAGEMENT IN WASHINGTON DC WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX EASED 040 TO 10664 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2533 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 948 ISSUES ROSE AND 1013 FELL BOND PRICES EDGED HIGHER THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN 1/8 OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 655 ANOTHER 16YEAR LOW THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17205 MARKS AND 10805 YEN COMPARED WITH 17150 MARKS AND 10707 YEN WEDNESDAY 9307160119 930716 LEISURE & ARTS THE GALLERY POP ART AT THE BEGINNING BY DEBORAH SOLOMON NEW YORK HANDPAINTED POP AMERICAN ART IN TRANSITION 195562 ON VIEW AT THE WHITNEY MUSEUM OF ART IS AN EXHIBITION WITH A MISSION IT WANTS TO PROVE THAT THE POPART MOVEMENT WHICH IS USUALLY DESCRIBED AS REPRESENTING A SHARP BREAK FROM THE EMOTIONLADEN WAYS OF POLLOCK DE KOONING AND THE REST OF THE ABSTRACTEXPRESSIONIST GANG IN FACT HAD A GOOD DEAL IN COMMON WITH THEM IS THIS A VALID POINT OR IS IT JUST AN ARTHISTORIAN'S ARMCHAIR GAME TO ME IT MAKES MORE SENSE TO MAINTAIN THE OLD SEPARATIST'S LINE ABSTRACT EXPRESSIONISM SANCTIFIED THE HANDWROUGHT GESTURE AND POP ART BANISHED IT TO MISS THAT IS TO MISS EVERYTHING THAT MAKES THE TWO MOVEMENTS INTERESTING STILL THERE IS SOMETHING ENTICING ABOUT THE NOTION THAT POP ART WAS ONCE EXPRESSIVE I FOR ONE WAS LOOKING FORWARD TO THIS SHOW WHICH PROMISED TO REVEAL POP ART'S HIDDEN BEGINNINGS CHRONICLING THE YEARS BEFORE THE WORK OF WARHOL AND COMPANY ASSUMED ITS CRYSTALLINE SHAPE AND COOL SARCASTIC GRIN HERE WOULD BE A CHANCE TO SEE THE LEGENDS OF POP ART IN THE TRANSITIONAL PERIOD WHEN THEIR WORK STILL BETRAYED THE MARK OF THE HAND THE SWOOP OF THE PAINTBRUSH THE GLAMOUR OF RAW UNBURNISHED FEELING YET HANDPAINTED POP UP UNTIL OCT 3 IS A DISAPPOINTING SHOW IT'S MORE ABOUT POPULAR CULTURE THAN PAINT PROMISING TO PLUMB EXPRESSIVE DEPTHS AND INSTEAD OFFERING UP THE USUAL ARRAY OF DISNEY CHARACTERS AND COKE BOTTLES INEVITABLY THERE WAS SOME OVERLAP BETWEEN ABSTRACT EXPRESSIONISM AND POP ART YOU DON'T NEED A PHD TO DISCERN THE OCCASIONAL 50STYLE SCHMEARING IN THE ART OF THE 60S THE EXHIBITION COMES ACROSS AS A STRAINED ATTEMPT TO PLAY UP THE CONNECTIONS BETWEEN POP AND THE PAST WE'RE SUPPOSED TO FEEL IMPRESSED BY POP'S DEBT TO TRADITION LIKE FINDING OUT THAT A PUNK ROCKER HAD TRAINING IN CLASSICAL MUSIC THE BEST WAY TO EXPLAIN THIS SHOW WHICH WAS ORGANIZED BY DONNA DE SALVO AND PAUL SCHIMMEL AND PREMIERED AT THE MUSEUM OF CONTEMPORARY ART IN LOS ANGELES MAY BE IN NOSTALGIC TERMS POP ART IS AMONG OTHER THINGS THE ART THAT FLOURISHED DURING THE CHILDHOOD YEARS OF THE BABYBOOM GENERATION IT WAS BORN AROUND THE SAME TIME AS THE BOOMERS AND IN CELEBRATING POP WE'RE CELEBRATING NOT JUST ART BUT THE INNOCENCE OF OUR CHILDHOODS BRIMMING WITH WHOLESOME UPBEAT IMAGES OF MICKEY MOUSE AND DICK TRACY WITH AMERICAN ICONS LIKE ROASTING TURKEYS AND CHERRY PIE POP WAS THE FIRST MOVEMENT TO EXPLOIT THE BOTTOMLESS HUNGER FOR NOSTALGIA THAT IS THE TRADEMARK OF THE YUPPIE GENERATION WHEN WE LOOK AT POP TODAY WE'RE GETTING A DOUBLE DOSE OF NOSTALGIA AFTER 30 YEARS WE FEEL SENTIMENTAL TOWARD THIS MOST SENTIMENTAL ART STYLE BUT IT ISN'T ONLY ART THAT WE'RE ASKED TO SAVOR IN THE WHITNEY SHOW ONE ROOM OF THE EXHIBITION IS DEVOTED TO A SOCIAL HISTORY OF THE '50S COMPLETE WITH NEWSPAPER HEADLINES AND ACTUAL TV RERUNS THE VIEWER CAN SIT AND CHUCKLE AT COMMERCIALS FOR BRYLCREEM KEEP YOUR HAIR AND SCALP CLEAN AND LOVABLE UNDERGARMENTS DESIGNED TO GIVE YOU A LONG GRACEFUL SILHOUETTE HANDPAINTED POP IS ITSELF A KIND OF CAMPY RERUN A REMINDER OF THE CONSUMER CULTURE THAT SPAWNED NOT ONLY POP ART BUT THE CURRENT MENTALITY OF THE WHITNEY MUSEUM AT ANY RATE THE SHOW IS NOT WITHOUT ITS VISUAL REWARDS ITS BEST MOMENTS LOOK FORWARD TO THE FUTURE OF POP WHILE LOOKING BACK TO THE SPIRIT OF 10TH STREET THE FORMER STOMPING GROUNDS OF THE ABSTRACT EXPRESSIONISTS I PARTICULARLY LIKED ROY LIECHTENSTEIN'S BUGS BUNNY 1958 A ROUGHLY EXECUTED INK DRAWING IN WHICH THE PESKY RABBIT RECLINES ON HIS BACK AS IF FOR A MAGAZINE CENTERFOLD HIS HANDS BEHIND HIS HEAD AND HIS TEETH BARED TO SUGGEST THE FEVERISH NUDES OF DE KOONING CLAES OLDENBURG'S SELFPORTRAIT 1959 WITH ITS LOOSE BRUSHWORK LOOPY LINES AND UNFINISHED HANDS CATCHES THE ARTIST IN AN UNCHARACTERISTICALLY EARNEST MOMENT YET ELSEWHERE IN THE SHOW THERE IS MUCH THAT IS MEDIOCRE AND ONE IS NEVER QUITE CONVINCED THAT ARTISTS WERE EXPERIMENTING WITH ABSTRACT EXPRESSIONISM SO MUCH AS THEY WERE SIMPLY FUMBLING IN ITS WAKE ALLAN KAPROW IS KNOWN AS THE FOUNDER OF HAPPENINGS AND STANDING BEFORE HIS CAGED PHEASANT 2 1956 AN OVERWROUGHT ABSTRACTION THAT HAS EVERYTHING BUT THE KITCHEN SINK ONE CAN UNDERSTAND WHY HE PUT DOWN HIS BRUSHES AND SWITCHED TO PERFORMANCE ART SIMILARLY THERE ARE TOO MANY EARLY WORKS BY JIM DINE ALL MESSILY SMEARED AND INSCRIBED WITH WORDS LIKE CAR AND CRASH WHICH WOEFULLY LACK THE RIGOR AND POWER HE LATER DISCOVERED IN THE RELATIVELY SIMPLE IMAGE OF BATHROBES TO JUDGE FROM THIS SHOW NO POP ARTIST HAD LESS OF A NATURAL GIFT FOR PAINTING THAN ANDY WARHOL HIS EARLY PAINTINGS TEND TO LOOK UNFINISHED AS IF HE GAVE UP ON THEM IN CONFUSION TYPICAL IS ICEBOX 1960 A BIG VERTICAL PICTURE IN WHICH HE DEFTLY REPRODUCES THE CONTENTS OF A REFRIGERATOR EGGS KETCHUP A JAR OF PICKLES AND SO ON WHILE LEAVING THE SURROUNDING AREA NEARLY BLANK HE DOESN'T KNOW WHAT TO DO WITH IT BEYOND APPLYING SOME BROAD NONDESCRIPT WHITE STROKES OF COURSE WARHOL EVENTUALLY TURNED HIS WEAKNESS INTO HIS STRENGTH ABANDONING THE PAINTBRUSH ALTOGETHER IN FAVOR OF COMMERCIAL TECHNIQUES AND PRETENDING THAT ONLY A HICK COULD STILL BE INTERESTED IN THE OLDFASHIONED CRAFT OF PAINTING HANDPAINTED POP SETS OUT TO ELEVATE THE POPART MOVEMENT BY ANCHORING IT IN THE AUGUST TRADITIONS OF THE 50S THE HEYDAY OF AMERICAN PAINTING YET THE EXHIBITION ENDS UP DOING JUST THE OPPOSITE MANY OF THE ARTISTS IT SHOWCASES ARE MADE TO SEEM INEPT EVEN DYSFUNCTIONAL IN THE YEARS BEFORE THEY DISCOVERED A VEHICLE FOR THEIR AMBITION IN THE WORLD OF ADVERTISEMENTS AND CONSUMER OBJECTS RATHER THAN NARROWING THE CHASM BETWEEN POP AND ABSTRACT EXPRESSIONISM THE SHOW ONLY WIDENS IT IT SUMMONS UP NOT THE GHOSTS OF THE PAST SO MUCH AS THE GLIBNESS OF THE PRESENT 9307160118 930716 WHO'S NEWS LIZ CLAIBORNE HEIR APPARENT MARGOLIS QUITS POST OF VICE CHAIRMAN DIRECTOR BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A MOVE THAT STARTLED WALL STREET AND THE APPAREL INDUSTRY LIZ CLAIBORNE INC ANNOUNCED THE RESIGNATION OF JAY MARGOLIS A VICE CHAIRMAN AND DIRECTOR WHO HAD BEEN CONSIDERED A CONTENDER TO BECOME THE COMPANY'S NEXT CHAIRMAN MR MARGOLIS 44 YEARS OLD ANNOUNCED HIS RESIGNATION AT A CLAIBORNE DIRECTORS' MEETING YESTERDAY IN A STATEMENT THE COMPANY SAID THAT MR MARGOLIS SAID HE'S LEAVING TO PURSUE OTHER BUSINESS OPPORTUNITIES COMPANY OFFICIALS DECLINED TO ELABORATE AND MR MARGOLIS DIDN'T RETURN PHONE CALLS SEEKING COMMENT AN INDUSTRY EXECUTIVE SAID THAT MR MARGOLIS INDICATED YESTERDAY THAT HE WOULD SOON ANNOUNCE HIS PLANS TO JOIN ANOTHER COMPANY WHICH MR MARGOLIS DECLINED TO IDENTIFY CLAIBORNE SHARES FELL 175 TO 29625 A SHARE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MR MARGOLIS A NINEYEAR VETERAN OF CLAIBORNE IS RESPECTED IN THE INDUSTRY AND HIS DEPARTURE WAS SAID TO BE VOLUNTARY BUT IT COMES AS THE BIG APPAREL MAKER IS SUFFERING AN EARNINGS SLUMP AND ITS MARKET SHARE IS ERODING ANALYSTS EXPECT THE COMPANY TO ANNOUNCE A 20 DROP IN SECONDQUARTER EARNINGS AS A RESULT OF HEAVIERTHANEXPECTED MARKDOWNS AT RETAIL AND COSTS RELATED TO ITS OVERHAUL OF RUSS TOGS WHICH IT ACQUIRED LAST YEAR AND THE COMPANY HAS SAID IT EXPECTS A DIFFICULT SECOND HALF THE COMPANY SAID THAT MR MARGOLIS'S JOB AS COORDINATOR OF ALL CLAIBORNE'S MERCHANDISING FUNCTIONS WILL BE DIVIDED BETWEEN JEROME CHAZEN CHAIRMAN OF CLAIBORNE AND HARVEY FALK VICE CHAIRMAN AND PRESIDENT UNTIL A SUCCESSOR IS NAMED MR MARGOLIS'S RESIGNATION DIDN'T COME AS A COMPLETE SURPRISE TO SOME WALL STREET ANALYSTS SAID ONE WHO ASKED NOT TO BE IDENTIFIED JAY IS A VERY DYNAMIC GUY FULL OF VITALITY AND NEW IDEAS ESPECIALLY IN TERMS OF BUSINESS START UPS I THINK THAT HE JUST GOT VERY FRUSTRATED THIS ANALYST ADDED THAT MR MARGOLIS APPEARS TO HAVE CLASHED OVER STRATEGIC MATTERS WITH THE MORE CONSERVATIVE MESSRS CHAZEN AND FALK MR MARGOLIS JOINED CLAIBORNE IN 1984 TO LAUNCH THE COMPANY'S MENSWEAR DIVISION AND LATER BECAME PRESIDENT OF THE WOMEN'S SPORTSWEAR DIVISION ALONG WITH MR FALK WHO IS 58 HE WAS NAMED VICE CHAIRMAN IN 1989 WHEN DESIGNER LIZ CLAIBORNE AND HER HUSBAND ART ORTENBERG RETIRED FROM THE COMPANY THOUGH MR FALK WAS GIVEN THE ADDITIONAL TITLE OF PRESIDENT BOTH HE AND MR MARGOLIS WERE CONSIDERED TO BE TOP CONTENDERS TO SUCCEED MR CHAZEN 66 WHEN HE RETIRES 9307160117 930716 DIVIDEND NEWS VALUE LINE INC VALUE LINE INC NEW YORK INCREASED ITS QUARTERLY DIVIDEND 33 TO 20 CENTS A SHARE FROM 15 CENTS BECAUSE OF STRONG EARNINGS THE MOVE IS THE COMPANY'S FIRST DIVIDEND INCREASE IN SIX YEARS THE DIVIDEND IS PAYABLE OCT 6 TO SHARES OF RECORD SEPT 8 THE COMPANY WHICH PROVIDES INVESTMENT ADVISORY SERVICES WILL REPORT ITS FISCAL FIRSTQUARTER EARNINGS NEXT WEEK WHICH WILL CONTINUE THE EXCELLENT RESULTS OF THE PAST TWO YEARS SAID JEAN BUTTNER CHIEF EXECUTIVE OFFICER 9307160116 930716 WHO'S NEWS BELMAC SEEKS CHIEF TO SUCCEED OFFICIAL NAMED 5 MONTHS AGO TAMPA FLA BELMAC CORP FOR THE SECOND TIME IN FIVE MONTHS IS CHANGING CHIEF EXECUTIVES THE PHARMACEUTICAL COMPANY IN A STATEMENT SAID MICHAEL M HARSHBARGER WILL NO LONGER SERVE AS PRESIDENT AND CHIEF EXECUTIVE MICHAEL D PRICE BELMAC'S VICE PRESIDENT OF FINANCE AND TREASURER SAID IN AN INTERVIEW THAT THE BOARD OF DIRECTORS HAD DECIDED THAT A CHANGE IN MANAGEMENT WAS IN THE BEST INTEREST OF THE COMPANY HE DECLINED TO BE MORE SPECIFIC MR HARSHBARGER COULDN'T BE REACHED FOR COMMENT HE WILL REMAIN A DIRECTOR MR PRICE SAID A SEARCH WILL BEGIN IMMEDIATELY FOR A SUCCESSOR IN THE INTERIM A THREEMEMBER EXECUTIVE COMMITTEE COMPRISED OF BOARD MEMBERS WILL MANAGE OPERATIONS THE THREE MEMBERS ARE RANALD STEWART JR CHAIRMAN DR ROBERT STOTE SENIOR VICE PRESIDENT AND CHIEF SCIENCE OFFICER AND CHESTER THATCHER JR A DIRECTOR IN LATE FEBRUARY BELMAC'S CHIEF EXECUTIVE OFFICER AND TWO OTHER TOP OFFICERS QUIT IN A MANAGEMENT SHAKEUP SPARKED BY A DISPUTE OVER THE COMPANY'S STRATEGIC DIRECTION JEANFRANCOIS ROSSIGNOL CHAIRMAN AND CHIEF EXECUTIVE RESIGNED AS DID MAX HUGUET CHIEF FINANCIAL OFFICER AND VITTORIO FERRARIS SENIOR VICE PRESIDENT AS A RESULT BELMAC'S BOARD NAMED MR HARSHBARGER WHO HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER AS CHIEF EXECUTIVE AT THE TIME HE SAID THE COMPANY HAD BEEN OVERWEIGHTED TOWARD RESEARCH AND DEVELOPMENT IN MAY BELMAC REPORTED A FIRSTQUARTER LOSS OF 26 MILLION OR 21 CENTS A SHARE COMPARED WITH A LOSS OF 15 MILLION OR 13 CENTS A SHARE A YEAR EARLIER MR HARSHBARGER AT THE TIME SAID THE LOSS WAS WITHIN THE COMPANY'S TARGET GOAL ADDING THAT IT WAS MOVING TOWARD PROFITABILITY THE COMPANY'S STOCK MEANWHILE HAS DRIFTED STEADILY DOWN FROM A PRICE OF ABOUT 6 A SHARE EARLY IN THE YEAR YESTERDAY IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE BELMAC CLOSED AT 2375 A SHARE UNCHANGED 9307160115 930716 WHO'S NEWS CITIBANK HIRES WARBURG'S MICHAELSON TO HEAD GLOBAL ASSET MANAGEMENT ARM BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN A MOVE THAT INVESTMENT MANAGERS DESCRIBE AS A COUP CITIBANK SAID IT HIRED BOB MICHAELSON CHAIRMAN OF WARBURG INVESTMENT MANAGEMENT INTERNATIONAL TO BE CHIEF INVESTMENT OFFICER OF ITS GLOBAL ASSET MANAGEMENT ARM HE'S VERY WELLRESPECTED AND WARBURGS IS ONE OF THE MOST WELLRESPECTED HOUSES THEY HAVE AN EXCELLENT REPUTATION AND THEIR FUNDS HAVE GROWN SUBSTANTIALLY OVER THE PAST THREE YEARS SAID ROSALIND ALTMANN GLOBAL EQUITY STRATEGIST AT COUNTY NATWEST INVESTMENT MANAGEMENT LTD IN LONDON AT CITIBANK GLOBAL ASSET MANAGEMENT MR MICHAELSON WILL HEAD A TEAM OF 180 INVESTMENT PROFESSIONALS BASED IN 26 CENTERS AROUND THE WORLD HE WILL BE RESPONSIBLE FOR SETTING INVESTMENT POLICY OF THE GROUP'S 68 BILLION UNDER MANAGEMENT WITH A PARTICULAR EMPHASIS ON INTERNATIONAL ASSET ALLOCATION HE IS ALSO EXPECTED TO SUPPORT KEY CLIENT RELATIONSHIPS IT HASN'T BEEN DECIDED WHETHER MR MICHAELSON WILL DIRECTLY MANAGE MONEY HIMSELF BUT W NEVILLE BOWEN CHIEF EXECUTIVE OF CITIBANK GLOBAL ASSET MANAGEMENT IN LONDON SAID HE IS A PRACTICING INVESTMENT MANAGER AND HAS RECENTLY MANAGED PORTFOLIOS HE LIKES TO LEAD BY EXAMPLE MR MICHAELSON 46 YEARS OLD WILL BE BASED IN LONDON HIS APPOINTMENT IS EFFECTIVE AT THE END OF AUGUST THE JOB OF GLOBAL CHIEF INVESTMENT OFFICER IS A NEW ONE AT CITIBANK'S ASSET MANAGEMENT UNIT UP TO NOW OVERALL INVESTMENT POLICY HAS BEEN DETERMINED BY MR BOWEN AND SEVERAL EXECUTIVES BASED AROUND THE WORLD WARBURG INVESTMENT MANAGEMENT INTERNATIONAL IS THE US SUBSIDIARY OF MERCURY ASSET MANAGEMENT GROUP PLC ONE OF BRITAIN'S LARGEST AND MOST SUCCESSFUL FUND MANAGEMENT FIRMS IN ADDITION TO HEADING WARBURG MR MICHAELSON IS A MEMBER OF THE MERCURY BOARD AND IS RESPONSIBLE FOR INVESTMENTS OF MERCURY'S CLIENTS IN CONTINENTAL EUROPE A SPOKESMAN FOR MERCURY SAID HE LEAVES WITH OUR BEST WISHES THE SPOKESMAN ADDED THAT DESPITE THE LOSS OF MR MICHAELSON'S TALENT MERCURY HAS BOTH STRENGTH AND DEPTH CONSOLIDATED MONEYMANAGEMENT CITIBANK'S ASSET MANAGEMENT OPERATIONS HAVE UNDERGONE A GREAT DEAL OF CHANGE RECENTLY MR BOWEN SAID THAT WAS TO BE EXPECTED CONSIDERING THAT SENIOR MANAGEMENT OF PARENT COMPANY CITICORP DECIDED OVER A YEAR AGO TO BUILD A CORE BUSINESS IN THE INVESTMENT MANAGEMENT FIELD IN APRIL 1992 THE BIG US BANK CONSOLIDATED ITS WORLDWIDE MONEY MANAGEMENT OPERATIONS INTO A SINGLE UNIT AT THAT TIME IT HIRED MR BOWEN WHO HAD BEEN CHIEF EXECUTIVE OF HILL SAMUEL INVESTMENT MANAGEMENT GROUP THEY SAW THAT THIS WAS A VALUABLE RELATIONSHIP BUSINESS PROMISING A HIGH RETURN ON CAPITAL AND THAT IT WAS A GOOD GLOBAL GROWTH BUSINESS SAID MR BOWEN HE ALSO SAID THE INVESTMENT MANAGEMENT BUSINESS SUPPORTS OTHER ACTIVITIES AT THE BANK THROWING OFF BUSINESS TO FOREIGN EXCHANGE TRADING AND CUSTODIAL OPERATIONS THIS YEAR WE'LL BE DISAPPOINTED IF WE DON'T HAVE ABOUT 76 BILLION UNDER MANAGEMENT BY THE END OF 1993 SAID MR BOWEN 9307160114 930716 BUSINESS BRIEF FIAT SPA JOINT VENTURE TO DEVELOP CARS FUELED BY METHANE GAS ITALIAN AUTO MAKER FIAT SPA AND STATECONTROLLED GAS DISTRIBUTOR SNAM SPA SAID THEY HAD JOINED FORCES TO DEVELOP A CAR THAT WOULD BE FUELED BY METHANE GAS INITIAL INVESTMENT WILL RUN TO SOME TENS OF BILLIONS OF LIRE THE TWO COMPANIES SAID FIAT HAS ALREADY BROKEN INTO THE METHANEPOWERED VEHICLE MARKET WITH BUSES FIVE OF WHICH ARE IN OPERATION IN RAVENNA ITALY THE METHANEPOWERED CAR IS LIKELY TO COST AROUND 20 TO 30 MORE THAN A GASOLINEDRIVEN ONE AND INITIAL TARGETING FOR SALES WILL BE AS FLEET VEHICLES SUCH AS TAXIS AND DIPLOMATIC CARS 9307160113 930716 IT'S IT AND THAT'S A SHAME WHY ARE SOME SLOGANS LOSERS TSK TSK MILLIONS ARE WASTED ON LINES BEST FORGOTTEN AD WRITERS JUST OVERDO IT' BY JOANNE LIPMAN STAFF REPORTER OF THE WALL STREET JOURNAL SURE FASHION STYLIST KYM CANTER LIKES A BEER EVERY ONCE IN A WHILE JUST DON'T GET THE 31YEAROLD NEW YORKER STARTED ON THE MILLER LITE SLOGAN IT'S IT AND THAT'S THAT MAJORLEAGUE PATHETIC SHE GROANS IT SAYS ABSOLUTELY NOTHING I DON'T KNOW WHAT THOSE ADVERTISING PEOPLE WERE THINKING AND WHAT OF THE MONTHS OF RESEARCH THE LEGIONS OF SMARTLY DRESSED MARKETING EXECUTIVES THE 90 MILLIONPLUS ANNUAL ADVERTISING BUDGET THAT BACKED UP THE SLOGAN SAYS MS CANTER A WASTE OF TIME AND MONEY TOTALLY WHY ASK WHY AMERICAN ADVERTISERS WILL SPEND CLOSE TO 140 BILLION THIS YEAR AND POUR MILLIONS MORE INTO RESEARCHING AND REFINING SLOGANS THAT WILL DEFINE AND SELL THEIR BRANDS WHY THEN DO THEY SO OFTEN COME UP WITH CLINKERS THAT ANYBODY ON THE STREET COULD TELL THEM JUST WON'T FLY SOME SLOGANS ARE JUST REALLY STUPID SAYS TERESA SPEEGLE A 38YEAROLD HOUSEWIFE FROM ARGOS IND SHE SOMETIMES WONDERS SHE SAYS WHY ADVERTISERS EVEN BOTHER SPENDING ALL THAT MONEY THERE ARE TWOYEAROLD KIDS WHO CAN COME UP WITH SOMETHING BETTER IF YOU GIVE THEM HALF A CHANCE THE GUTTERS OF MADISON AVENUE ARE CLOGGED WITH DISCARDED SLOGANS THAT ONCE IN SOMEONE'S CONFERENCE ROOM PROBABLY SEEMED NOTHING LESS THAN BRILLIANT LIKE BURGER KING'S SHORTLIVED 1988 TONGUETWISTER WE DO IT LIKE YOU'D DO IT WHEN WE DO IT LIKE WE DO IT AT BURGER KING THE CORNY INSURANCE CREDO AETNA I'M GLAD I MET YA THE BIZARRE REEBOKS LET UBU AND AS OF THIS WEEK DIET COKE'S TASTE IT ALL WHICH COCACOLA CO KILLED AFTER LESS THAN SEVEN MONTHS MOST ADVERTISERS AND THEIR AD AGENCIES NEVER ACTUALLY ADMIT THEIR MISTAKES TO THIS DAY MILLER BREWING CO EXECUTIVES PRAISE IT'S IT EVEN THOUGH THE LINE WAS A LAUGHINGSTOCK IN AD CIRCLES AND SURVIVED FOR LESS THAN A YEAR AS THE CENTERPIECE OF LITE ADS THE LATEST SLOGAN INTRODUCED LAST MONTH SAFELY INVOKES LITE'S ORIGINAL LONGRUNNING LINE COINED IN 1975 TASTES GREAT LESS FILLING CAN YOUR BEER DO THIS TO BE FAIR SOME OF THE MOST DESPISED SLOGANS DO EXACTLY WHAT THEY ARE SUPPOSED TO I DON'T THINK IT NECESSARILY HAS TO BE LIKABLE OR ENTERTAINING TO BE EFFECTIVE SAYS DAVID SHARP SENIOR VICE PRESIDENT OF MARKETING FOR UNILEVER'S LEVER BROS CO HE SHOULD KNOW HIS COMPANY'S BIGSELLING WISK DETERGENT TORTURED CONSUMERS WITH RING AROUND THE COLLAR FOR TWO LONG DECADES STARTING IN 1958 A WISK SLOGAN OF MORE RECENT VINTAGE TSK TSK TSK WISK WISK WISK PROMPTS MRS SPEEGLE THE INDIANA HOUSEWIFE TO SPUTTER THEY THINK WE'RE MORONS A FEW COMPANIES SEEM TO ACTUALLY WANT OBNOXIOUS SLOGANS PERHAPS ON THE THEORY THAT AT LEAST THEY WILL STAND OUT JUST TRY TO FORGET THE LIKES OF TUM TE TUM TUM I HAVE A THERAGRAM FOR YOU OR CHOCOLATE IS SCRUNCHES WHEN IT CRUNCHES STILL SOME OF THE BIGGEST GROANERS DON'T EVEN MOVE THE PRODUCT SUBARU'S WHAT TO DRIVE IS HORRIBLE ONE OF THE ALLTIME WORST I DON'T WANT TO BE TOLD WHAT TO DRIVE OPINES ED MCCABE THE VETERAN ADMAN WHO THOUGHT UP IT TAKES A TOUGH MAN TO MAKE A TENDER CHICKEN FOR POULTRY PEDDLER FRANK PERDUE SUBARU SALES THROUGH JUNE PLUNGED ABOUT 14 FROM THE SAME PERIOD LAST YEAR ACCORDING TO JD POWER & ASSOCIATES A RESEARCH FIRM AT SUBARU OF AMERICA HEADQUARTERS IN CHERRY HILL NJ ADVERTISING MANAGER MARK DUNN INSISTS THE SLOGAN IS ABSOLUTELY FINE THERE IS JUST ONE PROBLEM IN HIS VIEW WE HAVEN'T YET BEEN ABLE TO CONVINCE THE CONSUMER THAT WE ARE WHAT TO DRIVE NOR DOES VOLKSWAGEN'S FAHRVERGNUGEN WHICH APPARENTLY IS SUPPOSED TO CONVEY SOMETHING ABOUT DRIVING PLEASURE SEEM TO HAVE MANY FANS THESE DAYS I THINK IT'S A NOODLE DISH OFFERS ROY GRACE OF THE NEW YORK AD AGENCY GRACE & ROTHSCHILD IT DOES STAND OUT HE CONCEDES BUT IF YOU HIT SOMEONE IN THE FACE WITH A WET RAG YOU GET THEIR ATTENTION IS THAT THE KIND OF ATTENTION YOU WANT MOST PEOPLE REMEMBER IT IN A VERY NICE WAY COUNTERS DAVID SCHEMBRI DIRECTOR OF MARKETING FOR VOLKSWAGEN UNITED STATES IN AUBURN HILLS MICH NEVERTHELESS IN A BID TO ACTUALLY GET PEOPLE TO BUY THE BRAND ITS SALES PLUNGED 20 LAST YEAR ACCORDING TO JD POWER THE COMPANY SPENT ALMOST A FULL YEAR RESEARCHING NEW SLOGANS AND RUNNING THE POSSIBILITIES PAST SOME 50 FOCUS GROUPS THE RESULT UNVEILED IN MAY VOLKSWAGEN THE MOST LOVED CARS IN THE WORLD WHY ARE SO MANY SLOGANS SO DREADFUL AD AGENCY CREATIVE TYPES WHO GET PAID TO WRITE THEM OFTEN BLAME INSIPID SLOGANS ON STODGY CLIENTS OR AN OVERRELIANCE OF RESEARCH MAKING MATTERS WORSE AS VARIOUS SLOGANS ARE TOSSED BACK AND FORTH BETWEEN AGENCIES AND CLIENTS PEOPLE GET NUMB THEY LOSE THEIR TRUE MEASURE OF THE SLOGANS' LEVEL OF IDIOCY MR GRACE SAYS THE BAR IS LOWERED CONSTANTLY SOMETIMES A BRAND IS HAUNTED BY A CATCHY OLD SLOGAN THAT JUST WON'T DIE BURGER KING HAS GONE THROUGH TEN MOSTLY FORGETTABLE LINES SINCE HAVE IT YOUR WAY BOWED OUT IN 1974 REMEMBER 1977'S BEST DARN BURGER FEW DO HOW ABOUT MAKE IT SPECIAL MAKE IT BURGER KING 1979 AND BURGER KING TOWN 1986 AFTER SPENDING SIX FIGURES TO RESEARCH EVERY WORD OF SEVERAL POTENTIAL NEW SLOGANS BURGER KING IN 1991 FINALLY RESURRECTED ITS OLD WARHORSE LINE AND GAVE IT A SLIGHT TWIST YOUR WAY RIGHT AWAY WHY NOT JUST SAVE THE CASH AND GO BACK TO THE ORIGINAL BURGER KING USES DIFFERENT AD AGENCIES NOW EXPLAINS BARRY SCHWARTZ DIRECTOR OF BRAND AND PRODUCT RESEARCH AND EACH AD AGENCY WANTS TO BRING THEIR MARK TO BEAR FOR HIS PART AL RIES A PROMINENT GREENWICH CONN MARKETING CONSULTANT WHO MAKES A LIVING THINKING ABOUT SUCH THINGS CRINGES EVERY TIME HE HEARS IT THE WORD IT' I HATE TO SAY IS A EUPHEMISM FOR SEX HE CONFIDES THAT GOES FOR COKE IS IT MILLER LITE'S RECENT COME ON LET ME SHOW YOU WHERE IT'S AT AND ITS ACCOMPANYING JINGLE I LIKE IT LIKE THAT AND NIKE'S POPULAR JUST DO IT IN MR RIES'S VIEW THE PEPSI SLOGAN GOTTA HAVE IT IS JUST PLAIN OBSCENE FOR OTHER REASONS JIM VAN GIESON A MECHANIC WHO OWNS JIM'S AUTOMOTIVE IN WARSAW IND IS NO FAN OF GOTTA HAVE IT EITHER PEPSICO EXECUTIVES SAY THE SLOGAN SCORED THROUGH THE ROOF IN CONSUMER RESEARCH BUT THAT DOESN'T IMPRESS MR VAN GIESON HOW MANY PEOPLE WERE IN THAT BOARD MEETING THAT DAY TO COME UP WITH GOTTA HAVE IT' HE SAYS MARVELING SOMEBODY SPENT MONEY TO SEND THEIR KID TO COLLEGE SO THEY COULD INVENT THIS STUFF AD EXECUTIVES SAY A TRULY AWFUL SLOGAN ISN'T SIMPLY EMBARRASSING OR INEFFECTIVE IT CAN ACTUALLY HURT THE PRODUCT YEARS AGO NEW YORK ADMAN JERRY DELLA FEMINA CRIBBED A LINE FROM ANOTHER COPYWRITER FOR A L'OREAL AD THE NEXT TIME YOUR HUSBAND LOOKS AT A YOUNGER WOMAN MAKE SURE IT'S YOU SAYS MR DELLA FEMINA IT TURNED OUT TO BE THE BIGGEST FLOP IN HISTORY I THINK THAT LINE SINGLEHANDEDLY USHERED IN WOMEN'S LIB 9307160112 930716 WHO'S NEWS CINTAS CORP CINTAS CORP CINCINNATI GERALD V DIRVIN WAS NAMED A DIRECTOR OF THIS CORPORATE UNIFORM PROVIDER MR DIRVIN 56 IS AN EXECUTIVE VICE PRESIDENT AND DIRECTOR OF PROCTER & GAMBLE CO HE SUCCEEDS WILLIAM H CONGLETON 70 WHO RETIRED 9307160111 930716 BUSINESS BRIEF DIAMOND SHAMROCK INC FIRST CORNER STORE FRANCHISE OPENED IN MEXICO IN JUNE DIAMOND SHAMROCK INC SAN ANTONIO SAID ITS FIRST CORNER STORE FRANCHISE OPENED IN MEXICO LAST MONTH NEAR MONTERREY THE FRANCHISE IS THE FIRST OF 200 CONVENIENCE STORE FRANCHISES THAT DIAMOND SHAMROCK PLANS TO OPEN IN MEXICO OVER THE NEXT FIVE YEARS THE COMPANY WHICH REFINES AND MARKETS PETROLEUM PRODUCTS OPERATES US GASOLINE OUTLETS IN CONJUNCTION WITH ITS CONVENIENCE STORES IT IS FRANCHISING ITS STORES IN MEXICO IN CONJUNCTION WITH PEMEX THE STATEOWNED OIL COMPANY DIAMOND SHAMROCK SAID ITS STRONG PRESENCE IN SOUTH TEXAS MADE EXPANSION INTO MEXICO A NATURAL MOVE 9307160110 930716 TRACKING TRAVEL BY JONATHAN DAHL MORE CARRENTAL COMPANIES ARE IMPOSING CANCELLATION FEES ON SOME RESERVATIONS AVIS THIS MONTH IS PHASING IN A 50 FEE ON CUSTOMERS WHO DON'T CANCEL RESERVATIONS THEY DON'T KEEP FOR MINIVANS CONVERTIBLES AND OTHER SPECIALTY CARS BOTH HERTZ A SUBSIDIARY OF PARK RIDGE CORP AND NATIONAL CAR RENTAL SYSTEM A GENERAL MOTORS UNIT HAVE HAD SIMILAR POLICIES SINCE LAST YEAR THOUGH HERTZ SAYS IT HAS EXPANDED ITS POLICY TO MORE LOCATIONS THIS SUMMER PREVIOUSLY CARRENTAL COMPANIES HAD THESE FEES ONLY AT A FEW LOCATIONS DURING BRIEF PEAK PERIODS SO FAR THE CHANGE HASN'T SPREAD TO SMALLER COMPETITORS BUT ANALYSTS SAY IT EVENTUALLY WILL THEY ALSO SAY THE INDUSTRY IS ONLY A YEAR OR TWO AWAY FROM MAKING ALL RESERVATIONS SUBJECT TO CANCELLATION FEES THOUGH HERTZ AVIS AND NATIONAL SAY THEY HAVE NO SUCH PLANS RIGHT NOW THE TIME HAS PROBABLY COME FOR THIS INDUSTRY SAYS HAROLD SELIGMAN PRESIDENT OF MANAGEMENT ALTERNATIVES A TRAVELCONSULTING FIRM IN STAMFORD CONN WITH THE AIRLINES DOING IT FOR SO LONG IT'S JUST BECOME AN ACCEPTED PRACTICE THE CANCELLATION POLICIES VARY BY COMPANY AND SOMETIMES BY LOCATION HERTZ GENERALLY WAIVES THE FEE IF THE CONSUMER CANCELS AT LEAST SIX TO 12 HOURS BEFORE THE PICKUP TIME WHILE AVIS REQUIRES 48 HOURS' NOTICE AVIS'S CANCELLATION FEE HOWEVER IS 50 WHILE SOME HERTZ LOCATIONS CHARGE AS MUCH AS 100 NATIONAL HAS A 50 CANCELLATION FEE IF IT DOESN'T RECEIVE 24 HOURS' NOTICE ALL THREE COMPANIES SAY THEY WARN PEOPLE MAKING RESERVATIONS ABOUT THE CANCELLATION FEES AND USUALLY TAKE CREDITCARD DEPOSITS TO COVER THE FEES AMERICANS TRAVELING TO EUROPE THIS SUMMER NEED TO BE ON THE LOOKOUT FOR GOOD GUYS THE STATE DEPARTMENT SAYS THIEVES IN SPAIN AND ITALY ARE RIPPING OFF A GROWING NUMBER OF RENTALCAR DRIVERS INCLUDING MANY AMERICANS A COMMON TACTIC IS FOR A GOOD SAMARITAN TO FLAG DOWN A RENTALCAR DRIVER AND POINT OUT SOME PHONY MECHANICAL PROBLEM WITH THE CAR WHILE THE DRIVER'S ATTENTION IS DIVERTED A PARTNER WILL SNEAK UP AND STEAL PROPERTY FROM THE CAR IF NECESSARY THE THIEVES HAVE SMASHED WINDOWS TO GET IN THOUGH IT ISN'T KEEPING STATISTICS THE STATE DEPARTMENT SAYS THE CRIME IS BECOMING SO COMMON THAT IT PUT OUT AN OFFICIAL WARNING TO AMERICAN TRAVELERS THE WARNING IS CONTAINED IN THE DEPARTMENT'S TRAVEL ADVISORIES WHICH CAN BE OBTAINED FROM EMBASSIES TRAVEL AGENTS AND OTHER SOURCES HERTZ SAYS THE THIEVES TYPICALLY IDENTIFY POTENTIAL VICTIMS BY HANGING OUT NEAR AIRPORT RENTALCAR LOCATIONS IN SOME CASES THE THIEVES TAMPER WITH A TIRE TO START A SLOW LEAK YOU DRIVE OUT OF THE LOT AND GET A FLAT A COMPANY SPOKESMAN SAYS THEN ALL OF A SUDDEN THIS HELPFUL STRANGER APPEARS SO MANY OF HERTZ'S EUROPEAN BRANCHES HAVE POSTED SIGNS WARNING TRAVELERS THE COMPANY ALSO IS PREPARING A BROCHURE WITH SAFETY TIPS SAYS THE SPOKESMAN IF YOU THINK YOU HAVE A MECHANICAL PROBLEM GO STRAIGHT TO A GAS STATION OR HERTZ LOCATION DON'T ACCEPT HELP FROM A STRANGER HOTELS ARE WIDELY IGNORING A FEDERAL CONSUMERPROTECTION LAW INVOLVING THEIR ROOM PHONES SO IS THE AGENCY THAT'S SUPPOSED TO ENFORCE THE MEASURE SINCE 1991 HOTELS HAVE BEEN REQUIRED TO POST ROOM SIGNS EXPLAINING AMONG OTHER THINGS THAT GUESTS HAVE A RIGHT TO USE THEIR OWN LONGDISTANCE PHONE COMPANIES BEFORE THE LAW MANY HOTELS AND PAYPHONE OPERATORS RESTRICTED ACCESS ON THEIR PHONES AND SOMETIMES CHARGED RATES THAT WERE MANY TIMES MORE EXPENSIVE AFTER A PUBLIC OUTCRY CONGRESS PASSED A LAW PROHIBITING SUCH RESTRICTIONS AND REQUIRING THE SIGNS BUT A SURVEY EARLIER THIS YEAR BY A HOTEL NEWSLETTER FOUND THAT 52 OF 100 RANDOMLY PICKED PROPERTIES WEREN'T COMPLYING WITH THE LAW'S DISCLOSURE PROVISIONS THAT'S A TERRIBLE RECORD SAYS LARRY CHERVENAK EDITOR OF CKC REPORT IN NEW YORK WHICH DID THE SURVEY THERE'S NO REASON A HOTEL SHOULDN'T BE IN FULL COMPLIANCE UNLESS IT'S GOUGING PEOPLE THE FEDERAL COMMUNICATIONS COMMISSION CAN IMPOSE FINES FOR NONCOMPLIANCE OF AS MUCH AS 75000 PER HOTEL AN FCC SPOKESMAN SAYS THE AGENCY KNOWS ABOUT THE COMPLIANCE PROBLEM ITS OWN INVESTIGATORS SEE IT WHEN THEY TRAVEL AND THE AGENCY HAS DONE ITS OWN SURVEYS IN THE PAST BUT THE FCC HASN'T LEVIED ANY FINES AND HAS ISSUED ONLY A HANDFUL OF WARNINGS TO HOTELS THAT'S BECAUSE THE SPOKESMAN SAYS THE AGENCY IS FOCUSING ITS EFFORTS ON MAKING SURE HOTELS DON'T RESTRICT ACCESS TO LONGDISTANCE CARRIERS WE FEEL THAT WITH THE MANPOWER WE HAVE THIS IS THE MOST IMPORTANT ISSUE HE SAYS BUT CONSUMER ADVOCATES SAY THE DISCLOSURE REQUIREMENTS ARE IMPORTANT BECAUSE MANY TRAVELERS PROBABLY DON'T KNOW THEY HAVE THE RIGHT TO USE THEIR OWN LONGDISTANCE CARRIER ALL IT WOULD TAKE WAS ONE LARGE FINE AND EVERY HOTEL WOULD FALL INTO LINE SAYS MICHAEL ASHINGTONPICKETT EDITOR OF AN ORLANDO FLA CONSUMER NEWSLETTER BEARING HIS NAME THE HAWAII VISITORS BUREAU DISMAYED BY A PROLONGED SLUMP IN THE STATE'S TOURISM BUSINESS LAST MONTH BEGAN CONSIDERING A NOVEL PLAN SELLING VACANT HOTEL SPACE TO A BARTER FIRM AND USING THE FUNDS FOR A FRESH ADVERTISING CAMPAIGN BUT TRAVEL AGENTS AND TOUR OPERATORS COMPLAINED LOUDLY THAT THE PLAN WOULD COST THEM COMMISSIONS AND BUSINESS THE BUREAU THEN QUICKLY ANNOUNCED THE IDEA WAS ONLY IN THE EARLY STAGES WHEN AIRLINES COMPLAIN ABOUT ANY INCREASE IN FUEL COSTS HERE'S WHY SOME PLANES BURN AS MUCH AS 3500 GALLONS OF FUEL AN HOUR THE MD11 WITH 258 SEATS BURNS 2200 GALLONS AN HOUR ON THE GROUND AND IN THE AIR ACCORDING TO AVMARK AN AIRLINE CONSULTING FIRM IN ARLINGTON VA THE 737200 WITH 110 SEATS BURNS 787 GALLONS PER HOUR 9307160109 930716 LETTERS TO THE EDITOR THE SPORTING LIFE THE JUNE 23 ARTICLE ON HARNESS RACING SAID THAT THE PEOPLE WHO ATTEND HARNESS RACES TEND TO BE RETIRED MEN WITH LESS THAN 50000 INCOME IN FACT 24 OF THE PEOPLE WHO ATTENDED HARNESS RACES IN THE PAST YEAR ACCOUNT FOR 74 OF THE SPORT'S BUSINESS THE HEAVY USER GROUP IS PREDOMINANTLY MALE 69 OF WHICH 63 ARE FULLTIME EMPLOYED 74 BETWEEN THE AGES OF 21 AND 59 AND WITH A MEDIAN HOUSEHOLD INCOME OF 45000 THE HEAVY USERS ARE NOT PREDOMINANTLY RETIRED MEN ONLY 20 OF OUR HEAVY USERS ARE RETIREES OUR FANS WAGER 28 BILLION A YEAR I ASSURE YOU THEY ARE NOT DESTITUTE 9307160108 930716 CHEMICAL FIRMS LIKELY TO POST MIXED RESULTS OVERCAPACITY AND ECONOMIC WOES IN US EUROPE HURT INDUSTRY'S FIGURES BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL CHEMICAL COMPANIES ARE EXPECTED TO POST MIXED RESULTS FOR THE SECOND QUARTER REFLECTING INDUSTRY OVERCAPACITY THE UNEVEN ECONOMIC RECOVERY IN THE US AND RECESSION ACROSS MUCH OF EUROPE DOW CHEMICAL CO AND A HANDFUL OF OTHER COMPANIES THAT ARE HEAVILY INVESTED IN COMMODITY CHEMICALS AND PLASTICS THAT SUFFER THE MOST FROM EXCESS GLOBAL CAPACITY ARE EXPECTED TO REPORT LOWER EARNINGS ANALYSTS SAY DOW IN PARTICULAR IS ALSO BEING BATTERED BY THE ECONOMIC DOWNTURN IN EUROPE AS WELL AS CONTINUED WRITEOFFS AT MARION MERRELL DOW INC ITS 71OWNED DRUG SUBSIDIARY THE INDUSTRY OUTLOOK FOR THE NEXT SEVERAL QUARTERS IS ONLY SLIGHTLY LESS GLOOMY AN EARNINGS RECOVERY IN EUROPE WOULD HELP BUT THE CHEMICAL INDUSTRY IS STILL LITERALLY AWASH IN OVERCAPACITY SAYS PAUL LEMING A SECURITIES ANALYST WITH KIDDER PEABODY & CO IN NEW YORK AS A POSSIBLE HARBINGER OF LESSTHANSTELLAR SECONDQUARTER CHEMICAL COMPANY RESULTS BF GOODRICH CO AKRON OHIO REPORTED THAT EARNINGS FROM CONTINUING OPERATIONS FELL NEARLY 10 TO 105 MILLION OR 33 CENTS A SHARE FROM 115 MILLION OR 37 CENTS A SHARE A YEAR EARLIER SECONDQUARTER FIGURES INCLUDE 100 OF THE COMPANY'S FORMER GEON VINYL DIVISION A MAJOR PRODUCER OF POLYVINYL CHLORIDE PLASTIC PRODUCTS IN THE QUARTER GOODRICH SOLD 50 OF THE DIVISION IN AN INITIAL PUBLIC OFFERING BUT CHEMICAL MAKERS THAT SHARPLY CUT COSTS OVER THE PAST SEVERAL QUARTERS INCLUDING DUPONT CO AND UNION CARBIDE CORP ARE LIKELY TO SHOW ROUGHLY FLAT RESULTS TO MODEST GAINS IN EARNINGS AND MONSANTO CO MAINLY AS A RESULT OF RECORD ROUNDUP HERBICIDE SALES THIS SPRING IS EXPECTED TO POST NEARLY A 50 INCREASE IN RESULTS DOW OF MIDLAND MICH SAID THAT A 180 MILLION PRETAX CHARGE TAKEN BY MARION MERRELL DOW MAINLY TO SLASH ITS SALES STAFF ABOUT 13 OR BY AS MANY AS 1300 EMPLOYEES WILL RESULT IN A 30CENTASHARE CHARGE AGAINST THE COMPANY'S EARNINGS MOST ANALYSTS HAD ESTIMATED THAT DOW WOULD EARN BETWEEN 60 CENTS AND 65 CENTS A SHARE BEFORE THE CHARGE TAKEN BY KANSAS CITY MOBASED MARION MERRELL DOW WILL REPORT ITS SECONDQUARTER RESULTS NEXT THURSDAY WITH MOST PRICES STILL NOT BUDGING EVEN THOUGH US DEMAND IS PICKING UP FOR POLYETHYLENE AND OTHER COMMODITY CHEMICALS AND PLASTICS WALL STREET IS LOOKING ACROSS THE ATLANTIC FOR A SIGN THAT THE WORST MAY BE OVER FOR THE CHEMICAL INDUSTRY HARVEY STOBER AN ANALYST WITH DEAN WITTER REYNOLDS INC IN NEW YORK SAID THAT HIS QUARTERLY EARNINGS ESTIMATE FOR DOW IS FIVE CENTS TO 10 CENTS A SHARE HIGHER THAN MOST ANALYSTS' FIGURES BASED ON HIS BELIEF THAT THE SITUATION IN EUROPE ISN'T AS BAD AS MANY ANALYSTS THINK PLASTICS AND CHEMICALS PRICES RECENTLY HAVE BEEN BEATEN DOWN EXCESSIVELY IN EUROPE AND ARE BOUNCING OFF DEPRESSED LEVELS HE SAYS AND WITH THE EXCEPTION OF GERMANY MOST EUROPEAN ECONOMIES LED BY THE ALREADY REBOUNDING BRITISH ECONOMY WILL BE GROWING OVER THE NEXT FEW QUARTERS HE SAID UNION CARBIDE OF DANBURY CONN LACKS DOW'S MASSIVE EXPOSURE TO EUROPEAN ECONOMIES BUT IT IS ALSO A LEADING POLYETHYLENE PRODUCER UNLIKE DOW CARBIDE HAS BEEN ON A COSTCUTTING BINGE FOR THE PAST YEAR AND A HALF SELLING ITS INDUSTRIAL GASES AND SILICONES BUSINESSES AND PARING COSTS BY 400 MILLION THE PAYOFF MOST ANALYSTS ESTIMATE THAT CARBIDE'S SECONDQUARTER EARNINGS WERE 23 CENTS TO 26 CENTS A SHARE COMPARED WITH 24 CENTS A SHARE A YEAR AGO ON AN OPERATING BASIS CARBIDE WILL REPORT RESULTS DURING THE LAST WEEK IN JULY DUPONT OF WILMINGTON DEL ALSO HAS BENEFITED FROM CONTINUED COSTCUTTING THAT HAS HELPED OFFSET RECESSIONWEAKENED CHEMICAL SALES ESPECIALLY FOR TITANIUM DIOXIDE A COMPOUND THAT ADDS OPACITY TO PAPERS PAINTS AND DOZENS OF OTHER PRODUCTS THERE HAS ALSO BEEN A MODEST RECOVERY IN LYCRA SPANDEX FIBER PRICES WHICH WERE DEPRESSED OVER THE PAST SEVERAL MONTHS DEAN WITTER'S MR STOBER ASSERTED ANALYSTS ESTIMATED DUPONT WILL REPORT PERSHARE EARNINGS OF ABOUT 80 CENTS COMPARED WITH YEARAGO OPERATING EARNINGS OF 72 CENTS DUPONT EXPECTS TO REPORT RESULTS JULY 28 MONSANTO ST LOUIS IS LIKELY TO REPORT NET INCOME OF ROUGHLY 160 A SHARE COMPARED WITH OPERATING EARNINGS OF 107 A SHARE A YEAR AGO FOLLOWING RECORD SALES OF ITS ROUNDUP HERBICIDE THIS PAST SPRING ANALYSTS SAID THE WET SPRING ACROSS THE MIDWEST PROMPTED MANY FARMERS TO BUY ROUNDUP TO BURN DOWN WEEDS THAT SPROUTED IN THEIR FIELDS WHILE IT WAS STILL TOO WET TO CULTIVATE MONSANTO WILL REPORT RESULTS NEXT TUESDAY 9307160107 930716 A SOFTER TRIANGLE HOW JAPAN INC WORKS WILL CHANGE SUBTLY HOWEVER VOTING ENDS THE INTERPLAY OF POLITICIANS BUREAUCRATS AND BUSINESS IS AT ISSUE IN SUNDAY BALLOT ACCEPTED WISDOM UNDER FIRE BY WALL STREET JOURNAL STAFF REPORTERS JOHN BUSSEY CLAY CHANDLER AND JACOB M SCHLESINGER TOKYO ON SUNDAY JAPAN'S CITIZENS WILL VOTE IN THEIR MOST IMPORTANT ELECTION IN 38 YEARS BUT TO UNDERSTAND WHAT IS REALLY GOING ON HERE DON'T FOCUS ON WHICH PARTY WINS THAT IS ONLY A FRACTION OF THE STORY JAPAN IS UNDERGOING A BROADER WRENCHING THAN JUST THAT OF ITS POLITICAL SYSTEM TRUE THE LIBERAL DEMOCRATIC PARTY MAY LOSE CONTROL OF THE GOVERNMENT FOR THE FIRST TIME SINCE 1955 YET IT ISN'T THE LDP ALONE THAT RULES THIS COUNTRY INSTEAD THE REAL POWER IN JAPAN LIES WITH WHAT THE JAPANESE CALL THE IRON TRIANGLE OF POLITICIANS BUREAUCRATS AND BIG BUSINESS A NEXUS OF SELFINTEREST AND POWER THAT DEFINES JAPAN INC AND TO A LARGE EXTENT POSTWAR JAPANESE SOCIETY AND NOW IT'S UNDER FIRE WE INTEND TO OVERHAUL THE CORRUPT IRON TRIANGLE DECLARES THE PLATFORM OF A POPULAR OPPOSITION PARTY ANOTHER GROUP HAS PRINTED PAMPHLETS WITH SINISTER CARICATURES OF THE HANDINGLOVE TRIUMVIRATE WE'RE THE WORLD'S RICHEST COUNTRY BUT LOOK AT THE WAY WE LIVE RAGES THE TRACT JUST AS WHEN THE BERLIN WALL COLLAPSED THE SOUND OF PEOPLE POWER IS CRUMBLING THE WALLS OF LDP RULE AND SO PERESTROIKA COMES TO JAPAN WHERE ONEPARTY RULE AND A STATEGUIDED ECONOMY LIFTED THIS NATION FROM THE ASHES OF WAR THESE DAYS POLITICAL STUDY GROUPS ARE SPROUTING FASTER THAN SHIITAKE MUSHROOMS ALL EAGER TO CHASTISE THE SYSTEM THAT LED TO THE OSSIFIED POLITICS AND THE CORRUPTION THAT BROUGHT DOWN THE GOVERNMENT LAST MONTH AS THE TUMULT OF JAPANESE POLITICS PLAYS OUT OVER THE NEXT SEVERAL MONTHS JAPAN'S NEWLY FRACTIOUS TRIANGLE WILL BE ALTERED BUT IT WON'T BE DESTROYED FAR FROM IT THIS CONSERVATIVE SOCIETY HAS TOO MUCH INERTIA FOR THE US THAT MEANS JAPAN AND ITS TRADE AND ECONOMIC POLICIES MAY NOT CHANGE AS BROADLY AS MANY IN THE CLINTON ADMINISTRATION HAD HOPED AND YET EVEN SMALL ALTERATIONS IN THE SYSTEM WILL REVERBERATE THROUGH JAPAN AMONG OTHER THINGS PLANNERS AT THE FINANCE MINISTRY ALREADY FEAR A GRIDLOCK AND SAY THEY DON'T KNOW WHICH POLITICIAN TO TURN TO FOR APPROVAL OF THEIR BUDGETS WHAT IS MORE THE NATION'S ECONOMY MAY BE HURT AND THE ELECTORATE LEFT CONFUSED A STUNNING 40 OF VOTERS FACED WITH THEIR FIRST REAL CHOICE IN YEARS SAY THEY AREN'T BACKING ANY PARTY REGARDLESS OF HOW THE POLITICAL CONTEST TURNS OUT THE FORCES ACTING ON THE TRIANGLE WILL LIKELY REMAIN WHEN JAPAN WAS A DEVELOPING NATION IT NEEDED THE NURTURING PATERNALISM OF THE STRUCTURE BUT NOW THAT JAPAN'S ECONOMY HAS MATURED SO HEAVY AND INTRUSIVE A HAND AT TIMES SEEMS ANACHRONISTIC INDEED EVOLUTIONARY PRESSURES WITHIN THE TRIANGLE ITSELF MAY WELL HAVE HELPED PRECIPITATE JAPAN'S CURRENT POLITICAL CRISIS THE TRIANGLE OF POWER THAT HAS RULED JAPAN LOOKS LIKE THIS BIG BUSINESS STAKES OUT ONE CORNER MAKING POLITICAL DONATIONS TO THE CONSERVATIVE PROBUSINESS LDP AND STRONGARMING EMPLOYEES TO WORK THE CAMPAIGNS AND VOTE THE PARTY LINE THE LDP IN TURN HANDS OUT CONTRACTS TO COMPANIES IN ITS DISTRICTS NOTABLY CONSTRUCTION FIRMS AND STALLS LEGISLATION ON ISSUES SUCH AS PRODUCT LIABILITY IT ALSO BRINGS HOME SUBSIDIES FOR LOYAL CONSTITUENTS LIKE RICE FARMERS AND THE BUREAUCRACY IT REGULATES BUSINESS OFTEN CUTTING SLACK FOR LDP CORPORATE BACKERS BUSINESS RETURNS THE FAVOR BY HANDING OUT JOBS TO THE BUREAUCRATS IN JAPAN REGULATORS ARE KNOWN FOR AMAKUDARI OR A DESCENT FROM HEAVEN IN WHICH THEY LAND IN JOBS IN THE PRIVATE SECTOR OFTEN IN INDUSTRIES THEY REGULATED FORMER MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY VICE MINISTERS ARE TOP EXECUTIVES AT MITSUBISHI CORP AND FUJITSU LTD BUREAUCRATS ALSO JUMP INTO POLITICS SINCE WORLD WAR II ABOUT ONEFIFTH OF ALL LDP MEMBERS OF PARLIAMENT HAVE BEEN FORMER BUREAUCRATS OF COURSE VIRTUALLY EVERYONE IN JAPAN HAS A STAKE IN THE SYSTEM FOR ALMOST EVERYONE FEEDS AT THE TROUGH CAREFULLY CONTROLLED MARKETS LIMIT COMPETITION WHICH HELPS EMPLOYERS GUARANTEE WORKERS LIFETIME EMPLOYMENT OR SOMETHING CLOSE TO IT THAT IS ONE REASON ESTIMATED REAL PERCAPITA DISPOSABLE INCOME IN JAPAN HAS ROCKETED TO 22 MILLION YEN 21000 IN 1991 FROM 351383 YEN IN 1955 WHEN THE LDP CAME TO POWER ACCORDING TO SALOMON BROTHERS ASIA LTD SIMILARLY IN 1956 JAPAN'S REAL PERCAPITA GROSS NATIONAL PRODUCT WAS 510000 YEN BY 1992 IT HAD SOARED TO 34 MILLION YEN SO IT IS THAT FEW HAVE ROCKED THE BOAT EVEN TODAY WITH ALL THE POLITICAL TUMULT MANY JAPANESE WORRY ABOUT LOSING A SYSTEM THAT HAS PRODUCED SO MUCH WEALTH WHEN COMPETITION IS FIERCE BUSINESS FAILURES AND UNEMPLOYMENT INCREASE AMERICA HAS ALREADY PROVEN THAT WARNED AN ARTICLE ON THE FRONT PAGE OF JAPAN'S LEADING BUSINESS DAILY YESTERDAY THERE'S A CONNECTION BETWEEN THE FORMATION OF THE IRON TRIANGLE AND THE FACT THAT OUR POLITICS AND REGULATIONS HAVE AVOIDED SUCH CONSEQUENCES NONETHELESS A GROWING CHORUS OF CRITICS SAYS THE SYSTEM IS DESPERATELY IN NEED OF AN OVERHAUL THAT THE PATERNALISTIC TRIANGLE HAS BECOME STULTIFYING FOR STARTERS CORRUPTION IS COMMONPLACE NUMEROUS LDP LEADERS HAVE BEEN TAINTED IN RECENT YEARS BY TAKING ILLEGAL PAYOFFS FROM BUSINESS THE ROOTS OF THE SCANDALS LIE PARTLY IN THE TRIANGLE ITSELF MANY OF THE POLITICALCORRUPTION CASES INVOLVED HIGHLY REGULATED INDUSTRIES AND BUSINESS FELT IT NEEDED THE POLITICIANS' HELP TO GET WORK THE REAL PROBLEM SAY THE CRITICS IS THAT THERE ISN'T ANY POLITICAL COMPETITION THE LDP IS THE SINGLE GUARDIAN OF THE INNERSANCTUM OF GOVERNMENT PROCUREMENT IF YOU WANT IN YOU HAVE TO PAY AT THE DOOR WHAT IS NEEDED IS A POWERFUL ALTERNATIVE PARTY ONE WITH GREATER HEFT THAN THE SOCIALIST PARTY A LEFTIST GROUP THAT HAS BEEN THE LDP'S TRADITIONAL OPPOSITION AND WHIPPING BOY NEW PARTIES THAT HAVE SPLIT RECENTLY FROM THE LDP NOW OFFER THAT ALTERNATIVE THE BUREAUCRACY IN MANY WAYS REMAINS THE TRIANGLE'S STRONGEST CORNER MADE SO BY THE VAGUENESS OF JAPANESE LAWS BILLS PASSED IN PARLIAMENT ARE OFTEN LITTLE MORE THAN EXPRESSIONS OF PRINCIPLE SO REGULATORS HAVE WIDE LATITUDE IN ENFORCING THE LAW THAT SAY THE CRITICS BREEDS INEFFICIENCY CHEATS CONSUMERS AND STIFLES INNOVATION WE HAVE TO GET APPROVAL FROM GOVERNMENT AGENCIES WHEN WE SELL RICE LIQUOR ALMOST EVERYTHING GROANS ISAO NAKAUCHI CHAIRMAN OF DAIEI INC JAPAN'S BIGGEST SUPERMARKET CHAIN YOU NEED A LICENSE TO RECYCLE TVS REFRIGERATORS YOU EVEN NEED APPROVAL TO SELL CONDOMS IN A VENDING MACHINE TO SEE WHAT HAPPENS TO CONSUMERS CONSIDER THE TALE OF MK TAXI A MAVERICK CAB COMPANY IN KYOTO THAT HAS BATTLED THE TRANSPORTATION MINISTRY FOR YEARS TO WIN PERMISSION TO LOWER FARES THREE TIMES THE COMPANY HAS SOUGHT APPROVAL TWICE IT WAS REJECTED ITS LATEST REQUEST IS PENDING TO MAKE A POINT THIS YEAR THE COMPANY ALSO PETITIONED TO RUN SOME OF ITS CABS FOR FREE FORGET IT SAID THE MINISTRY MORIHIRO HOSOKAWA HEAD OF THE JAPAN NEW PARTY LIKES TO TELL OF TOKYO TECHNOCRATS FORCING FARMERS IN HIS NATIVE KUMAMOTO TO BUILD CONCRETE PIGSTIES THOUGH WOODEN SHACKS WOULD HAVE DONE FINE THEN ANOTHER GROUP OF OFFICIALS SAID CONCRETE STRUCTURES MUST HAVE EMERGENCY EXITS DOES A PIG UNDERSTAND THE MEANING OF AN EMERGENCY EXIT HE ASKS THE BUREAUCRATS ALSO STILL LIKE TO DICTATE WHAT TAKES PLACE IN THE MARKET AN APPROACH THAT MADE SENSE WHEN JAPAN WAS PLAYING CATCHUP WITH THE WEST BUT ONE THAT DOESN'T NOW JAPAN HAS SOME OF THE WORLD'S LEADING TELECOMMUNICATIONS COMPANIES BUT BECAUSE OF OVERREGULATION THE NATION HAS FALLEN FAR BEHIND THE US IN IMPORTANT NEW TECHNOLOGIES IN TV BROADCASTING AND CELLULARPHONE SYSTEMS THE PROBLEM WITH SOCIALIST CENTRALLY PLANNED ORGANIZATIONS IS THAT THEY DON'T FEEL PAIN REASONS A MANAGER WITH A MAJOR JAPANESE AUTO MAKER LIKE WITH A HUMAN BEING IF YOU DON'T FEEL PAIN IF YOU PUT YOUR HAND OVER THE FLAME YOU EVENTUALLY DIE IN A CAPITALIST SOCIETY THE MARKET IS THE PAIN WE DON'T NEED THE BUREAUCRATS MAKING A MASTER PLAN ANYMORE LET THE MARKET DECIDE FOR THESE REASONS ALL POINTS ON THE TRIANGLE BUSINESS POLITICS AND THE BUREAUCRACY HAVE COME UNDER ATTACK AT LEAST FOR THE MOMENT HOW MIGHT THE NEW POWER STRUCTURE BE RECAST ON THIS SCORE THE EMERGING POLITICAL PARTIES ARE VAGUE AT BEST THEY SAY THAT REAL OPPOSITION IN THE PARLIAMENT WILL CREATE DEBATE WHICH WILL FORCE MORE DECISIONMAKING OUT INTO THE OPEN THAT DONE POLITICIANS BUREAUCRATS AND BUSINESS PEOPLE WON'T BE ABLE TO MAKE COZY DEALS IN THE BACK ROOM ANYMORE OR SO GOES THE ARGUMENT IN A MULTIPARTY SYSTEM NO LONGER DOMINATED BY ONE PARTY ADMINISTRATIONS WILL PERIODICALLY CHANGE ADDS ICHIRO OZAWA A LEADER OF THE JAPAN RENEWAL PARTY AND A FORMER LDP KINGPIN IT'S POSSIBLE THAT IN JAPAN TOO WE'LL HAVE OFFICIALS WHO ONLY WORK FOR ONE ADMINISTRATION THEN LEAVE THEN WE MIGHT HAVE A SYSTEM WHERE PEOPLE HAD TO TAKE SOME RESPONSIBILITY BE ACCOUNTABLE FOR THEIR ACTIONS MAYBE JAPAN ISN'T A NATION GIVEN TO DRAMATIC CHANGE EVEN THOSE BUSINESSMEN CRYING FOR A STRONG TWOPARTY SYSTEM ARE QUICK TO ADD THAT THEY WANT TWO STRONG CONSERVATIVE PARTIES JUST LIKE THE LDP THE ROOTS OF THE CURRENT SINGLEPARTY SYSTEM THE IRON TRIANGLE REACH VERY DEEP SAYS A SKEPTICAL MINORU MORITA A POLITICAL COMMENTATOR SOCALLED REVISIONIST ANALYSTS OF JAPAN HAVE LONG ARGUED THAT THE SYSTEM IS SO ENTRENCHED AND THE MANY TRIANGLES THAT EXIST HERE ARE SO INTERLOCKING THAT REFORM AND JAPAN ARE ALMOST MUTUALLY EXCLUSIVE TERMS NO SURPRISE THEN THAT SOME OF THESE THINKERS LAUGH AT ALL OF THE LOFTY POLITICAL TALK IN JAPAN THESE DAYS THIS IS ALL GRAND KABUKI RUN BY SMART BUREAUCRATS TO DISTRACT THE WORLD SAYS CHALMERS JOHNSON A POLITICALSCIENCE PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO THAT SAID THE BALANCE BETWEEN POLITICS AND ECONOMICS HERE ALREADY HAS BEEN AFFECTED THE FIRST SYMPTOM IS PARALYSIS FINANCE MINISTRY OFFICIALS FOR EXAMPLE SAY IT MAY ALREADY BE TOO LATE TO RESOLVE JAPAN'S TAXPOLICY PROBLEMS THIS YEAR THE FISCAL HAWKS AT THE MINISTRY FEAR A MASSIVE REVENUE SHORTFALL STILL THEY MIGHT HAVE ACCEPTED A SEVERAL TRILLION YEN INCOMETAX CUT THIS FALL MEANT TO STIMULATE JAPAN'S SAGGING ECONOMY IN EXCHANGE FOR ASSURANCES THE LDP WOULD HELP REVAMP THE TAX SYSTEM NEXT YEAR NOW THAT DEAL IS IN LIMBO MOST OF THE OPPOSITION PARTIES FAVOR SOME FORM OF INCOMETAX CUT BUT NO GROUP IS LIKELY TO EMERGE FROM THE ELECTIONS THIS WEEK WITH A MANDATE LARGE ENOUGH TO WIN SUPPORT FOR POLITICALLY CONTROVERSIAL TAX INCREASES NEXT YEAR ANY DELAY IN STIMULATING THE ECONOMY HERE IS BAD NEWS FOR OTHER NATIONAL ECONOMIES WHICH WOULD BENEFIT FROM SALES OF MORE PRODUCTS TO JAPAN AFTER THE ELECTION POLICIES THAT REQUIRE NEW LEGISLATION WILL BE AVOIDED AT ALL COSTS PREDICTS YUKIO NOGUCHI A HITOTSUBASHI UNIVERSITY ECONOMIST MY VIEW IS THAT JAPAN WILL DRIFT UNABLE TO MAKE ANY MAJOR DECISIONS INDEED POLITICAL ANALYSTS SAY SOME FORM OF COALITION GOVERNMENT OR MINORITY GOVERNMENT IS LIKELY IN JAPAN IF THAT PROVES TRUE THE TOUGH DECISIONS THAT JAPAN WAS JUST GETTING USED TO MAKING ESPECIALLY THOSE INVOLVING FOREIGN POLICY SUCH AS SENDING PEACEKEEPING TROOPS TO CAMBODIA COULD FALL PREY TO INTERNECINE BICKERING AND POLITICAL DELAY THE SPLITS WITHIN THE LDP ALSO HAVE WEAKENED THE PARTY'S TIES WITH BUSINESS SEVERAL COMPANIES SAY THEY ARE RECONSIDERING THEIR POLICY OF CHANNELING VIRTUALLY ALL THEIR DONATIONS TO THE LDP NEC CORP'S PRESIDENT THIS WEEK SAID BUSINESSES SHOULD EVEN CONSIDER HEDGING THEIR BETS BY GIVING MONEY TO AN OLD ENEMY THE SOCIALISTS HITACHI LTD FOR 20 YEARS EXHORTED ITS 30000 EMPLOYEES IN ONE REGION TO VOTE LDP NOW THE COMPANY SAYS IT IS STAYING NEUTRAL AND ON THE TRADE FRONT DON'T EXPECT BOLD STEPS FOR YEARS JAPANESE BUSINESS HAS OPTED TO IMPORT MORE GOODS FROM THE US ONLY AFTER LOTS OF STRONGARMING FROM THE POLITICIANS IF THE POLITICIANS ARE NOW DIVIDED AMONG THEMSELVES BUSINESS ISN'T LIKELY TO BUY AMERICAN OF ITS OWN ACCORD THUS US TRADE NEGOTIATORS MAY BE IN FOR SOME FRUSTRATING TIMES BUT THE THOUGHT OF LOOSENING THE OLD TRIANGLE GIVES MANY JAPANESE CAUSE FOR HOPE SOME SEE GENUINE RELIEF FOR THE LITTLE GUY AHEAD THE SYSTEM HAS HELPED JAPAN EXPAND ITS ECONOMIC POWER SAYS EIJI SUZUKI A PROMINENT BUSINESSMAN AND LEADING ADVOCATE OF REFORM MAYBE HE SAYS ATTENTION WILL FINALLY TURN TO DOMESTIC ISSUES LIKE REDUCING WORKING HOURS AND IMPROVING LIVING STANDARDS THAT FLIES IN THE FACE OF CONVENTIONAL WISDOM HE CONCEDES THE QUESTION HE SAYS IS WHETHER WE CAN OVERCOME CONVENTIONAL WISDOM 9307160106 930716 TECHNOLOGY SEAGATE'S EARNINGS DECREASED 44 IN ITS 4TH PERIOD BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SEAGATE TECHNOLOGY INC BLOODIED ALONG WITH ITS COMPETITORS BY AN UNRELENTING PRICING WAR IN THE COMPUTER DISKDRIVE INDUSTRY REPORTED A SHARP 44 DROP IN FISCAL FOURTHQUARTER EARNINGS THE SCOTTS VALLEY CALIF DISKDRIVE MAKER SAID NET INCOME IN THE PERIOD ENDED JULY 2 FELL TO 335 MILLION OR 48 CENTS A SHARE FROM 593 MILLION OR 84 CENTS A SHARE IN THE SAME QUARTER A YEAR AGO REFLECTING OVERSUPPLY IN THE MARKET SEAGATE'S SALES DIPPED SLIGHTLY TO 7702 MILLION FROM 7802 MILLION A YEAR EARLIER THE RESULTS WERE ROUGHLY IN LINE WITH ANALYSTS' EXPECTATIONS SEAGATE'S STOCK CLOSED AT 1750 A SHARE UP 1625 OR 10 IN LATE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET YESTERDAY DESPITE THE STEEP FALL IN PROFIT SEAGATE OFFICIALS SAID THEY WERE JUST HAPPY TO HAVE MADE MONEY DURING A QUARTER IN WHICH THE PRICE WAR APPEARS TO BE LEVELING EARNINGS IN THE INDUSTRY CONNER PERIPHERALS INC FOR INSTANCE RECENTLY DISCLOSED IT WILL REPORT A WIDERTHANEXPECTED LOSS FOR THE SECOND QUARTER AND A LOSS FOR THE THIRD QUARTER AS IT STRUGGLES WITH PRICE CUTS AND A PHASEOUT OF OLDER PRODUCTS WE SURVIVED THE ONSLAUGHT OF SLASHANDBURN COMPETITION PRETTY WELL SAID ALAN F SHUGART SEAGATE'S CHIEF EXECUTIVE OFFICER THE DISKDRIVE INDUSTRY HISTORICALLY GOES THROUGH BOOMANDBUST CYCLES AND THE LATEST POOR EARNINGS PROVIDE FURTHER EVIDENCE THAT THE INDUSTRY HAS ENTERED A BUST PERIOD AFTER LAST YEAR'S STRONG PERFORMANCE LAST YEAR ANALYSTS SAY THE DEMAND FOR DISK DRIVES EXCEEDED SUPPLY SO THERE WAS LITTLE PRESSURE TO KEEP PRICES DOWN BUT DISKDRIVE MAKERS FURIOUSLY CRANKED UP PRODUCTION AND ESSENTIALLY FLOODED THE MARKET CREATING THE OVERSUPPLY THAT IN THE FIRST QUARTER FUELED AGGRESSIVE PRICE CUTS BY AS MUCH AS 20 ON SOME PRODUCTS SO NOW PRICING PRESSURES HAVE BEEN BRUTAL AND BECAUSE OF THAT GROSS MARGINS HAVE PLUMMETED FOR MOST OF THE COMPANIES SAID TODD BAKAR A SECURITIES ANALYST AT HAMBRECHT & QUIST POTENTIALLY MAKING MATTERS WORSE FOR THE INDUSTRY ARE INDICATIONS FROM ANALYSTS THAT DEMAND FOR PERSONAL COMPUTERS WHICH REMAINED STRONG DURING THE FIRST HALF MAY SOFTEN THROUGH THE REST OF THE YEAR IF THAT OCCURS THE INDUSTRY WOULD BE STUCK WITH ITS GLUT OF DISK DRIVES AND FEWER COMPUTERS TO PUT THEM IN THE PREVIOUS BOOM TIMES WERE REFLECTED IN SEAGATE'S YEAREND PERFORMANCE THE COMPANY'S PROFIT MORE THAN TREBLED TO 1954 MILLION OR 280 A SHARE FROM NET INCOME OF 632 MILLION OR 92 CENTS A SHARE SALES ROSE 6 TO 305 BILLION FROM 288 BILLION THE PREVIOUS YEAR 9307160105 930716 UNITED AIRLINES' 3 MAIN UNIONS SEEK MAJORITY STAKE IN RETURN FOR GIVEBACKS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UNITED AIRLINES' THREE MAJOR UNIONS TAKING YET ANOTHER STAB AT EMPLOYEE OWNERSHIP SAID THEY WANT A MAJORITY STAKE IN THE GIANT CARRIER IN RETURN FOR CONCESSIONS THAT WOULD HELP UNITED BECOME FINANCIALLY STRONGER AND MORE COMPETITIVE THE UNIONS DIDN'T SPECIFY HOW MUCH THEY'RE WILLING TO GIVE UP OR HOW MUCH STOCK THEY EXPECT IN RETURN BUT BASED ON CONCESSIONS AT OTHER CARRIERS AND CONCESSIONS OFFERED IN THE UNIONS' OWN FAILED BUYOUT ATTEMPT IN 1990 THE GIVEBACKS EASILY COULD AMOUNT TO HUNDREDS OF MILLIONS OF DOLLARS A YEAR ALTHOUGH SHARES OF UNITED'S PARENT UAL CORP SURGED LATE WEDNESDAY ON RUMORS OF AN EMPLOYEE BUYOUT ATTEMPT THE UNIONS SAID THEY HAD NO PLANS FOR A COMPLETE TAKEOVER OF THE COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE SHARES CLOSED DOWN 225 AT 13075 AFTER WEDNESDAY'S JUMP OF 675 BASED ON ABOUT 24 MILLION SHARES OUTSTANDING THE STOCK MARKET VALUES UAL AT NEARLY 32 BILLION THAT INDICATES THAT OVER TIME CONCESSIONS WOULD HAVE TO TOTAL AT LEAST HALF THAT FOR THE UNIONS TO ACQUIRE 51 OF THE COMPANY UNITED IS THE PRIMARY SUBSIDIARY OF UAL THE LABOR GROUPS WHICH UNTIL NOW HAVE RESISTED UNITED'S CALL FOR CONCESSIONS APPARENTLY ARE RESPONDING TO COMPANY PRESSURE LAST MONTH UNITED THREATENED TO SPIN OFF A NEW POSSIBLY NONUNION CARRIER TO FLY ITS CURRENTLY UNPROFITABLE SHORTHAUL DOMESTIC ROUTES UNITED ALSO IS MOVING TO ESTABLISH LOWERCOST FOREIGN BASES FOR FLIGHT ATTENDANTS AND IS TRYING TO PEDDLE ITS US FLIGHT KITCHENS WHICH EMPLOY MEMBERS OF THE MACHINISTS UNION THE MOVE BY THE UNIONS ALSO HIGHLIGHTS A TREND TOWARD EMPLOYEE OWNERSHIP IN THE TROUBLED AIRLINE INDUSTRY BUT LABOR IS ACTING SOONER AT UNITED WHERE THE SITUATION ISN'T NEARLY AS DIRE AS IT WAS AT OTHER CARRIERS UNIONS HAVE NEGOTIATED CONCESSIONS IN RETURN FOR BOARD SEATS AND STOCK AT TRANS WORLD AIRLINES WHICH IS TRYING TO EMERGE FROM BANKRUPTCYCOURT PROTECTION AND AT THE NORTHWEST AIRLINES UNIT OF WINGS HOLDINGS INC WHICH HAS THREATENED SUCH A FILING THE COALITION OF THE PILOTS MACHINISTS AND FLIGHT ATTENDANTS UNIONS SAID IT WILL DEVELOP A PROPOSAL AFTER MEETING WITH THE COMPANY UNITED SAID IN A STATEMENT THAT IT WILL RESPOND AFTER A DIRECT AND SPECIFIC COMMUNICATION FROM THE UNION COALITION THE UNIONS SAID THEY VIEWED THAT AS A SIGN THAT THE COMPANY IS WILLING TO TALK ALTHOUGH ANY AGREEMENT COULD TAKE WEEKS TO NEGOTIATE THE STATEMENT MARKS AN ADMISSION BY THE LABOR COALITION THAT UNITED NEEDS A BREAK ON LABOR COSTS TO BE AN EFFECTIVE COMPETITOR ALTHOUGH IT BOASTS SOME OF THE BEST ROUTES AND HUBS IN THE INDUSTRY THE NATION'S SECONDLARGEST CARRIER APPEARS HEADED FOR ITS THIRD CONSECUTIVE ANNUAL LOSS THIS YEAR IT'S THE FIRST SHOT ACROSS THE BOW TOWARD SOME RESOLUTION OF UNITED'S PROBLEMS SAID KEVIN MURPHY AIRLINE ANALYST AT MORGAN STANLEY & CO IF THE UNIONS DON'T ACT NOW THEY'RE ALL GOING TO BE WORKING FOR HERB KELLEHER MR KELLEHER IS CHAIRMAN OF SOUTHWEST AIRLINES A HIGHLY PROFITABLE LOWCOST AIRLINE BASED IN DALLAS A SPOKESMAN FOR THE UNION COALITION SAID HE DIDN'T KNOW THE SOURCE OF WEDNESDAY'S BUYOUT RUMORS BUT WORD OF THE UNIONS' PLANS APPARENTLY LEAKED OUT FROM MEETINGS THE PILOTS HAD EARLIER THIS WEEK TO DISCUSS THEIR STRATEGY THE UNIONS WHICH TOGETHER REPRESENT ABOUT 53000 OF UNITED'S 81000 EMPLOYEES EMPHASIZED THAT THEY WANT A COLLABORATIVE EFFORT WITH WHAT THEY REGARD AS A BASICALLY HEALTHY COMPANY DESPITE THE RECENT LOSSES THEY ALSO INDICATED THAT UNLIKE WITH SOME OF THEIR PAST BUYOUT ATTEMPTS THEY AREN'T AFTER THE JOB OF STEPHEN WOLF CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT LABOR'S COOPERATION WOULD COME AT A HEFTY PRICE IF WE'RE GOING TO DO THIS IT WILL BE MAJORITY OWNERSHIP SAID KEVIN LUM PRESIDENT OF THE 17000MEMBER FLIGHT ATTENDANTS UNION THE UNIONS WHOSE PREVIOUS ATTEMPTS TO ACQUIRE ALL OR PART OF UNITED FAILED ALSO WANT A SAY IN THE DIRECTION OF THE COMPANY AS WELL AS BOARD SEATS THOUGH NOT NECESSARILY A MAJORITY AT NORTHWEST AIRLINES THE UNIONS INITIALLY ASKED FOR 80 OF THE STOCK OF THE CLOSELY HELD COMPANY IN RETURN FOR EMPLOYEE CONCESSIONS BUT THE MACHINISTS BROKE AWAY FROM THE COALITION AND THE UNIONS EVENTUALLY SETTLED FOR AS MUCH AS 375 OF THE STOCK FOR ALL EMPLOYEES SOME ANALYSTS SAID TALKS AT UNITED COULD FOLLOW THE SAME PATH BUT THE UNIONS SAY THEY WILL STICK TOGETHER AND INSIST ON MAJORITY OWNERSHIP UNLIKE AT NORTHWEST THE UNITED UNIONS HAVE AGREED AMONG THEMSELVES ON THE RELATIVE SACRIFICE EACH IS PREPARED TO MAKE 9307160104 930716 BUSINESS BRIEF SAFEWAY INC GROCERY CHAIN'S EARNINGS ROSE 8 IN SECOND QUARTER SAFEWAY INC SAID NET INCOME IN THE SECOND QUARTER ENDED JUNE 19 ROSE 8 TO 36 MILLION OR 30 CENTS A SHARE A YEAR EARLIER THE OAKLAND CALIF GROCERY CHAIN EARNED 333 MILLION OR 28 CENTS A SHARE SALES IN THE LATEST PERIOD ROSE 29 TO 35 BILLION FROM 34 BILLION AS REPORTED SAFEWAY'S LATEST FIRSTQUARTER EARNINGS WERE DEPRESSED BY COSTS ASSOCIATED WITH AN EMPLOYEE SEVERANCE PROGRAM THAT WAS PART OF A NEW LABOR CONTRACT WITH SAFEWAY WORKERS IN ALBERTA CANADA IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SAFEWAY ROSE 75 CENTS TO 1650 9307160103 930716 CLINTON WINS SUPPORT FOR MORE LOANS TO POOR AREAS BUT PLAN FACES OBSTACLES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WON BROAD BIPARTISAN SUPPORT FOR HIS GOAL OF CHANNELING MORE CREDIT TO POOR COMMUNITIES BUT REPUBLICANS SAID COMMERCIAL BANKS SHOULD GET A GREATER ROLE UNDER HIS PLAN THE TWOPRONGED APPROACH THAT MR CLINTON ANNOUNCED ASKS CONGRESS TO ESTABLISH A 382 MILLION FUND TO INCREASE THE WORK OF COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS AND ORDERS REGULATORS TO TOUGHEN COMMUNITY REINVESTMENT RULES FOR BANKS MR CLINTON SAID THE CHANGES WOULD BRING THE MOVEMENT FOR DEMOCRATIC CAPITALISM AND GROWTH THAT IS RESHAPING THE ENTIRE WORLD TO FINANCIALLY DEPRIVED AREAS OF THE US BUT ALL THE REPUBLICANS ON THE SENATE BANKING COMMITTEE LINED UP BEHIND A PROPOSAL BY SEN ALFONSE D'AMATO OF NEW YORK THAT WOULD GIVE MORE INCENTIVES TO COMMERCIAL BANKS TO BOOST LENDING IN INNERCITY AND POOR RURAL AREAS WE SIMPLY CANNOT AFFORD A NEW GOVERNMENT PROGRAM WHEN INCENTIVES TO THE PRIVATE SECTOR WILL GET THE JOB DONE IN THESE AREAS SEN D'AMATO SAID AT A COMMITTEE HEARING AT WHICH ADMINISTRATION OFFICIALS DESCRIBED THE PRESIDENT'S PROPOSAL THE REPUBLICAN ALTERNATIVE COULD BE THE FIRST OF SEVERAL OBSTACLES THE CLINTON PLAN FACES THE ADMINISTRATION WANTS TO PUSH ITS PLAN THROUGH CONGRESS QUICKLY IN AN EFFORT TO DELIVER ON A CLINTON CAMPAIGN PLEDGE TO SPUR MORE LENDING IN POOR AREAS THROUGH FINANCIAL INSTITUTIONS THAT SPECIALIZE IN FUNDING HOUSING AND BUSINESSES IN POOR COMMUNITIES BUT THE BANKING INDUSTRY AND SOME OF ITS ALLIES IN CONGRESS WOULD LIKE TO USE THE COMMUNITY DEVELOPMENT BILL AS A VEHICLE FOR ITS PROPOSALS TO ROLL BACK A LONG LIST OF COSTLY BANK LAWS REPUBLICAN EFFORTS TO ALTER THE CLINTON PLAN INCREASE THE CHANCES FOR BANKERS TO WIN REGULATORY RELIEF THE ADMINISTRATION AND THE CHAIRMEN OF THE HOUSE AND SENATE BANKING COMMITTEES DON'T WANT TO CONSIDER REGULATORY RELIEF LEGISLATION THIS YEAR BECAUSE THEY FEAR IT COULD DEVELOP INTO A MESSY POLITICAL BATTLE OVER AN ISSUE THAT HAS NO PUBLIC APPEAL WHILE CONGRESS IS CONSIDERING THE PLAN TO SET UP A FUND THAT WOULD PUMP NEW CAPITAL INTO COMMUNITY DEVELOPMENT BANKS CREDIT UNIONS AND LOAN FUNDS REGULATORS WILL BE WORKING TO REVISE COMMUNITY REINVESTMENT RULES THAT REQUIRE BANKS TO MEET LOCAL CREDIT NEEDS THE CURRENT RULES ARE UNPOPULAR BOTH WITH BANKS AND COMMUNITY ACTIVISTS BECAUSE THEY IMPOSE HUGE PAPERWORK REQUIREMENTS ON BANKS WITHOUT NECESSARILY INCREASING CREDIT THE NEW RULES WHICH MR CLINTON DIRECTED REGULATORS TO COMPLETE BY JAN 1 1994 ARE DESIGNED TO ESTABLISH OBJECTIVE STANDARDS FOR RESPONDING TO COMMUNITY CREDIT NEEDS AS WELL AS NEW PENALTIES FOR BANKS THAT FALL SHORT OF THE STANDARDS THE CHANGES WILL CREATE A CLIMATE OF CREDIT ACCESSIBILITY THAT WILL HAVE A PROFOUND IMPACT IN POOR AREAS WHERE IT'S DIFFICULT TO BORROW MONEY PREDICTED THE REV CHARLES STITH PRESIDENT OF THE ORGANIZATION FOR NEW EQUALITY A COMMUNITY IMPROVEMENT GROUP BASED IN BOSTON 9307160102 930716 MONEY FUND ASSETS INCREASED 747 BILLION IN WEEKLY MEASURE WASHINGTON MONEYMARKET MUTUAL FUND ASSETS ROSE 747 BILLION TO 58496 BILLION FROM 57749 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 641 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 5064 MILLION TO 39143 BILLION THE TRADE GROUP SAID ASSETS OF 401 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY FELL BY 338 MILLION TO 30746 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS ROSE BY 5402 MILLION TO 8397 BILLION ASSETS OF THE 267 INSTITUTIONAL MONEYMARKET FUNDS ROSE BY 697 BILLION TO 19353 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 213 TAXABLE MONEY MARKET FUNDS ROSE BY 761 BILLION TO 17267 BILLION ASSETS OF 54 TAXEXEMPT FUNDS FELL BY 6428 MILLION TO 2086 BILLION 9307160101 930716 INTERNATIONAL JAPAN'S SUNDAY ELECTION IS SEEN AS FIRST STEP IN A LONG TRANSITION WEAK LDP SPLIT OPPOSITION MEAN NEXT GOVERNMENT COULD FALL IN MONTHS BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S NATIONAL ELECTIONS SUNDAY ARE LIKELY TO PRODUCE A WEAK GOVERNMENT THAT COULD BE FORCED TO CALL A NEW POLL IN A MATTER OF MONTHS POLITICIANS AND ANALYSTS SAY IF AS EXPECTED NO PARTY EMERGES WITH A MAJORITY OF SEATS IN THE LOWER HOUSE OF PARLIAMENT POLITICAL LEADERS WILL SPEND NEXT WEEK AND PERHAPS LONGER TRYING TO PUT TOGETHER A COALITION AND SELECT A PRIME MINISTER THE ELECTIONS WERE CALLED AFTER THE RULING LIBERAL DEMOCRATIC PARTY SPLIT IN A FIGHT OVER POLITICAL REFORM LAST MONTH POLITICIANS HAVE HAILED THE REVOLT AS THE BEGINNING OF THE END OF SINGLEPARTY RULE BY THE LDP EVEN THOSE MOST OPTIMISTIC ABOUT THE CHANCES FOR RESTRUCTURING JAPAN'S POLITICAL SYSTEM SAY IT NOW APPEARS THAT SUNDAY'S VOTE WILL BE ONLY A FIRST STEP IN A LONG PROCESS THERE IS NO DOUBT WE ARE CHANGING THE POLITICAL SYSTEM SAID TAKAO TOSHIKAWA EDITOR OF A POLITICAL NEWSLETTER BUT IT TAKES TIME IT WILL REQUIRE AT LEAST ANOTHER GENERAL ELECTION POLLS RELEASED THIS WEEK SHOW THAT POPULAR SUPPORT HAS PLUNGED FOR THE TWO PARTIES THAT HAVE DEFINED JAPANESE POLITICS SINCE 1955 THE LIBERAL DEMOCRATS AND THE LARGEST OPPOSITION PARTY THE SOCIALISTS BOTH PARTIES SEEM DESTINED TO WIN FAR FEWER SEATS THAN THEY GARNERED IN THE LAST ELECTION FILLING THE VOID WILL BE TWO NEW CONSERVATIVE GROUPS BOTH HEADED BY FORMER LDP MEMBERS THE LDP NEVERTHELESS WILL REMAIN BY FAR THE LARGEST PARTY SO THE NEXT GOVERNMENT EITHER WILL HAVE TO BE CENTERED AROUND THE LDP OR WILL BE A DELICATELY BALANCED GRAND COALITION OF ALL MAJOR NONLDP PARTIES A MAINICHI SHIMBUN NEWSPAPER POLL OF VOTERS SHOWED THAT 30 WANTED AN LDPBASED GOVERNMENT WHILE ANOTHER 30 WANTED ONE CENTERED AROUND THE NEW OPPOSITION PARTIES BUT THE OPPOSITION PARTIES HAVE BEEN BICKERING AMONG THEMSELVES LATELY SO FORMING AN ANTILDP ALLIANCE WOULD SEEM TOUGH TO PULL OFF SUSTAINING ONE WOULD BE EVEN HARDER IT HAS BECOME CLEARER THAT NONLDP OPPOSITION GROUPS DON'T GET ALONG AND THEY ALSO DON'T HAVE MUCH SUBSTANCE IN THEIR POLICIES SAID TAKASHI INOGUCHI A POLITICAL SCIENTIST AT TOKYO UNIVERSITY AN LDPLED GOVERNMENT BY THE SAME TOKEN WOULD LIKELY HAVE TO BEG CONSTANTLY FOR SUPPORT FROM HOSTILE OPPOSITION PARTIES AND THUS WOULDN'T BE ABLE TO HANG ON LONG EITHER ANALYSTS PREDICT THE GOVERNMENT WOULDN'T BE ABLE TO DECIDE ANYTHING SAID POLITICAL COMMENTATOR MASAYA ITOH IT WOULD LAST MAYBE ABOUT SIX MONTHS WHATEVER THE OUTCOME THE SPLIT OF THE LDP HAS INFUSED NEW LIFE INTO JAPAN'S MORIBUND DEMOCRACY VOTERS LONG TURNED OFF BY THE CORRUPTION AND PREDICTABILITY OF THE SYSTEM ARE NOW TUNING IN I HAVEN'T VOTED FOR 10 TO 15 YEARS BECAUSE THERE WAS NO CHANCE OF MAKING A CHOICE SAID IWAO NAKATANI A WELLKNOWN COMMENTATOR AND A PROFESSOR AT HITOTSUBASHI UNIVERSITY NEAR TOKYO THIS TIME HE SAYS HE'LL VOTE FOR ONE OF THE NEW PARTIES WHICH HE MEETS WITH IN BIWEEKLY STUDY GROUPS FOR THE FIRST TIME I FOUND IT VERY WORTHWHILE TO TALK TO POLITICIANS THE TWOWEEK CAMPAIGN WHICH WINDS UP TOMORROW HAS BEEN ONE OF JAPAN'S MOST RAUCOUS IN YEARS LDP LEADERS HAVE GONE TO EXTREMES TO ATTACK THE OPPOSITION PARTIES A STABLE ECONOMY CAN ONLY BE BUILT UNDER STABLE POLITICS MICHIO WATANABE A FORMER FOREIGN MINISTER WAS QUOTED AS TELLING A CROWD BY THE JAPANESE PRESS YESTERDAY IN THE US HE CONTINUED A GUN CONTROL LAW CANNOT BE PASSED BY CONGRESS BECAUSE PRESSURE FROM THE GUN INDUSTRY IS SO STRONG DRUG ADDICTS ARE LEFT TO DO AS THEY PLEASE ELECTIONS IN JAPAN ARE NORMALLY FACELESS ROUTINES BUT IN A NEW TWIST THE NEW PARTIES ARE PLAYING ON THE POPULARITY OF THEIR LEADERS POSTERS FOR THE JAPAN RENEWAL PARTY AN LDP SPLINTER GROUP FEATURE LARGE PHOTOGRAPHS OF PARTY HEAD TSUTOMU HATA A FORMER FINANCE MINISTER TURNED POPULIST ONE CANDIDATE IS GETTING ATTENTION BY TAKING THE UNUSUAL STEP AT LEAST FOR JAPAN'S SECRETIVE CORRUPTIONPLAGUED ELECTORAL SYSTEM OF MAKING REGULAR DISCLOSURES ABOUT HIS CAMPAIGN FINANCES DESPITE SUCH CHALLENGES TO THE STATUS QUO THIS WEEK'S POLLS PROJECTED A FAIRLY STRONG SHOWING FOR THE LDP MOST PREDICTED THAT THE LDP WILL AT LEAST WIN AS MANY SEATS AS IT HAD IN PARLIAMENT AFTER THE DEFECTIONS AND SAID THE PARTY COULD ACTUALLY GAIN GROUND BUT THOSE FORECASTS DON'T NECESSARILY REFLECT A SURGE IN LDP POPULARITY BECAUSE THE ELECTION WAS CALLED SUDDENLY THE NEW OPPOSITION PARTIES HAD LITTLE TIME TO FIELD LARGE SLATES THERE ARE JUST NOT ENOUGH CANDIDATES RUNNING TO KICK THE LDP ALL THE WAY OUT SAID CHUO UNIVERSITY'S STEVEN R REED 9307160100 930716 MARKETING & MEDIA FCC TIGHTENS CODE PROTECTING CALLERS FROM 900' FEES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION UPDATED RULES AIMED AT PROTECTING CONSUMERS WHO CALL INFORMATION SERVICES THAT CHARGE A FEE THE COMMISSION'S NEW RULES GENERALLY REQUIRE INTERSTATE PAYPERCALL SERVICES TO USE THE 900 AREA CODE CALLERS TO 800 NUMBERS AND OTHER TOLLFREE NUMBERS CAN'T BE CHARGED FOR INFORMATION SERVICES UNLESS THEY HAVE SET UP SOME PRIOR ARRANGEMENT WITH THE INFORMATION PROVIDER OR HAVE COMPLETED THEIR TRANSACTION USING A CHARGE CARD THE CHARGES THEN WOULD BE SUBJECT TO THE TRUTH IN LENDING OR FAIR CREDIT BILLING LAWS THE FCC ADOPTED THE CHANGES TO COMPLY WITH LAST YEAR'S TELEPHONE DISCLOSURE AND DISPUTE RESOLUTION ACT WHICH REQUIRES ACTION BY BOTH THE FCC AND THE FEDERAL TRADE COMMISSION TO CURB ABUSES BY PAYPERCALL SERVICES AMONG OTHER THINGS THE LAW REQUIRES INFORMATION PROVIDERS TO DISCLOSE CHARGES AND GIVE CALLERS A CHANCE TO HANG UP BEFORE INCURRING FEES THOSE CONCERNS WERE ADDRESSED IN EARLIER RULES UNDER THE NEW FCC RULES CONSUMERS MUST BE INFORMED THAT THEY CAN BLOCK ALL CALLS TO 900 NUMBERS AND LONGDISTANCE COMPANIES THAT CARRY PAYPERCALL SERVICES OVER THEIR NETWORKS MUST CANCEL SERVICES THAT FAIL TO COMPLY WITH FEDERAL REGULATIONS IN ADDITION THE LONGDISTANCE COMPANIES MUST SET UP TOLLFREE INFORMATION LINES TO HANDLE INQUIRIES ABOUT PAYPERCALL SERVICES LIST PAYPERCALL CHARGES ON CUSTOMER BILLS AND STATE ON THE BILL THAT LOCAL AND LONGDISTANCE PHONE SERVICES CAN'T BE DISCONNECTED IF PAYPERCALL CHARGES AREN'T PAID SPOKESMEN FOR BOTH AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP THE LARGEST CARRIERS OF 900 SERVICES WELCOMED THE RULES BUT SAID THEY ALREADY HAVE STRICT GUIDELINES TO PREVENT ABUSES SPRINT CORP THE NATION'S THIRDLARGEST LONGDISTANCE PROVIDER LARGELY STOPPED CARRYING 900 SERVICES IN 1991 SEPARATELY THE COMMISSION APPROVED RULES AIMED AT CLEARING A PORTION OF THE AIRWAVES FOR THE NEXT GENERATION OF WIRELESS COMMUNICATIONS KNOWN AS PERSONAL COMMUNICATIONS SERVICES THE NEW SERVICES INCLUDE POCKET TELEPHONES AND HANDHELD COMPUTERS THE RULES ESTABLISH A THREEYEAR SCHEDULE FOR NEW COMMUNICATIONS SERVICES THAT WANT TO NEGOTIATE WITH COMPANIES LIKE ELECTRIC AND GAS UTILITIES GAS PIPELINES AND RAILROADS THAT USE THE NEEDED PART OF THE RADIO SPECTRUM THE AGENCY ENCOURAGED EXISTING USERS TO MOVE TO HIGHER FREQUENCIES WHICH IT SET ASIDE IN A RELATED ACTION BY PROMISING TAX DEFERRALS FOR EXISTING USERS THAT PRODUCE A GAIN FROM THEIR NEGOTIATED AGREEMENTS 9307160099 930716 REVIEW & OUTLOOK EDITORIAL ASIDES TAKE A TAX HIKE YESTERDAY HERE RATE MAN'S BURDEN WE DESCRIBED HOW THE AMERICANS ON WHOM BILL CLINTON AND THE DEMOCRATS WANT TO DROP NEW TAXES ARE ALREADY BUCKLING UNDER THE COST OF FEDERAL ENVIRONMENTAL MANDATES AND THE LIKE SOMEONE NOW OUGHT TO SEND A SCOUT FROM THE HOUSESENATE MORE NEW TAXES CONFERENCE OUT TO COVINA CALIF THERE THE TOWNSPEOPLE HAVE JUST FIRED THE MAYOR AND ENTIRE CITY COUNCIL FOR IMPOSING A HIKE IN YOU BET UTILITY TAXES A SPECIAL ELECTION IS SCHEDULED FOR THE FALL AT ISSUE WAS A 6 TAX ON BILLS FOR WATER ELECTRICITY PHONE SERVICE AND GAS SHERI ERLEWINE OF THE CALIFORNIA LEAGUE OF CITIES TOLD THE AP I SUSPECT A LOT OF CITY COUNCIL MEMBERS THROUGHOUT THE STATE WILL BE VERY FRIGHTENED BY WHAT OCCURRED IN COVINA WE ARE SEEING RECALL BEING CONSIDERED MORE AND MORE IN COMMUNITIES CONGRESS MAY BE STARING DOWN THE BARREL OF A RESURRECTED TAX REVOLT 9307160098 930716 BUSINESS BRIEF CEDAR FAIR LP FLOODING EXPECTED TO HURT EARNINGS FOR SECOND QUARTER CEDAR FAIR LP CITING FLOODING IN THE UPPER MIDWEST SAID SECONDQUARTER EARNINGS MAY BE REDUCED BY AS MUCH AS 3 MILLION BECAUSE ATTENDANCE FELL 30 AT ITS VALLEYFAIR THEME PARK THE SANDUSKY OHIO COMPANY EXPECTS TO REPORT RESULTS FOR THE SECOND QUARTER DURING THE FIRST WEEK IN AUGUST IN THE YEAREARLIER QUARTER THE PARTNERSHIP POSTED NET OF 104 MILLION OR 49 CENTS A UNIT ON REVENUE OF 416 MILLION VALLEYFAIR LOCATED NEAR MINNEAPOLIS ST PAUL IS THE SMALLEST OF THE COMPANY'S THREE THEME PARKS THE COMPANY SAID IN A STATEMENT THAT IT IS TOO EARLY TO SPECULATE ON WHETHER OR NOT WE CAN REGAIN ANY OF THE ATTENDANCE LOST TO DATE AT VALLEYFAIR CEDAR FAIR SAID ITS LARGEST AMUSEMENT PARK CEDAR POINT IN SANDUSKY IS HAVING A GOOD SEASON AND ATTENDANCE HAS NOT BEEN AFFECTED BY RAINS AND FLOODING THE LIMITED PARTNERSHIP ALSO OPERATES DORNEY PARK & WILDWATER KINGDOM NEAR ALLENTOWN PA 9307160097 930716 BUSINESS BRIEFS DELOITTE & TOUCHE WON A 10 MILLION CONTRACT TO DEVELOP A COMPUTER SYSTEM FOR NEW YORK CITY'S ELECTION VOTING SYSTEM TO REPLACE MECHANICAL VOTING MACHINES TULTEX CORP'S LOGO 7 UNIT WAS GRANTED A LICENSE TO MAKE NATIONAL FOOTBALL LEAGUE PRO LINE SPORTSWEAR UNDER THE LOGO ATHLETIC BRAND NAME HORN & HARDART CO ACQUIRED THE CATALOG OPERATION AND SAN FRANCISCO STORE OF SPECIALTY RETAILER GUMP'S INC CORNING INC SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE COSTAR CORP FOR 180 MILLION IN STOCK SANOFI WINTHROP A PHARMACEUTICAL ALLIANCE BETWEEN EASTMAN KODAK CO'S STERLING WINTHROP UNIT AND ELF SANOFI PURCHASED AN ADDITIONAL 11 STAKE IN HUNGARIAN PHARMACEUTICAL COMPANY CHINOIN GIVING IT A 51 STAKE ELF SANOFI IS A UNIT OF SOCIETE NATIONALE ELF ACQUITAINE TERMS WEREN'T DISCLOSED WELLMAN INC BEGAN NEGOTIATIONS WITH BASF CORP A UNIT OF BASF AG TO ACQUIRE THE UNIT'S POLYESTER BUSINESS TERMS WEREN'T DISCLOSED 9307160096 930716 WORLD MARKETS TOKYO PRICES FLAT ON SOFT DATA FRANKFURT STOCKS EASE ON RATE INACTION THAT SINKS PARIS EQUITIES A WALL STREET JOURNAL NEWS ROUNDUP SHARE PRICES IN TOKYO ENDED LITTLE CHANGED THURSDAY AS INVESTORS TOOK PROFITS LATE IN THE DAY ON WEAK JAPANESE ECONOMIC INDICATORS LONDON STOCKS SLIPPED IN LACKLUSTER TRADING FRANKFURT EQUITIES EASED IN A SUBDUED REACTION AFTER THE GERMAN CENTRAL BANK DECIDED AGAINST REDUCING INTEREST RATES THOUGH THIS SENT PARIS STOCKS DOWN SHARPLY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10664 DOWN 040 REFLECTING DECREASES IN ASIA/PACIFIC AMERICAN AND EUROPEAN MARKETS STOCKS OF TOY COMPANIES WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10893 UP 136 OR 13 WITH SEGA ENTERPRISES OF JAPAN POSTING A 29 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS TRAILED AT 6209 DOWN 166 OR 26 WITH STRYKER OF THE US SLIDING 65 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 4131 POINTS WEDNESDAY ROSE 1891 TO 2015802 NEAR THE INTRADAY LOW OF 2014421 ON FRIDAY THE NIKKEI INDEX ROSE 4040 POINTS TO CLOSE THE MORNING SESSION AT 2019842 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES UP FROM 3084 MILLION SHARES ON WEDNESDAY GAINERS OUTNUMBERED LOSERS 678321 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 373 POINTS WEDNESDAY ADDED 810 TO 163968 FINANCIAL ISSUES TRADED HEAVILY ON CONTINUED SPECULATION ABOUT A JAPANESE INTERESTRATE CUT ON ARBITRAGE BUYING AT THE OPENING SHARE PRICES MOVED HIGHER THROUGH THE MORNING AND EARLY AFTERNOON AND THE NIKKEI TOUCHED A HIGH OF 2039464 BEFORE REVERSING COURSE IN THE FINAL TWO HOURS INVESTORS WERE DISCOURAGED BY ECONOMIC DATA THAT SHOWED LOWER SALES AT TOKYO AREA DEPARTMENT STORES AND BIGGER DECLINES IN REVISED INDUSTRIAL PRODUCTION AND SHIPMENTS AS WELL AS A SHARPER RISE IN INVENTORIES THE NIKKEI'S GAINS WERE NEARLY WIPED OUT BY INDEXLINKED SELLING BY INVESTMENT TRUSTS AND PROFITTAKING BY DEALERS AND INVESTORS MEANWHILE INVESTORS' FEARS ABOUT SUNDAY'S JAPANESE PARLIAMENTARY ELECTION ABATED WHICH CONTRIBUTED TO THE SHARPLY HIGHER TURNOVER IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 06 POINT TO 28317 THE FT 30STOCK INDEX EDGED UP 06 POINT TO 22215 VOLUME WAS 6111 MILLION SHARES LITTLE CHANGED FROM 6127 MILLION SHARES A DAY EARLIER TRADING WAS UNINSPIRED WITH NO APPARENT REASONS FOR STOCKS' UPS OR DOWNS EQUITIES MANAGED ONLY A SMALL GAIN IN MORNING TRADING AND SPENT THE REST OF THE SESSION DRIFTING AIMLESSLY BEFORE SETTLING LOWER INVESTORS REACTED INDIFFERENTLY TO ECONOMIC REPORTS THAT SHOWED BRITAIN'S UNEMPLOYMENT RATE FLAT AND THE AVERAGE EARNINGS INCREASE SLOWING IN FRANKFURT THE DAX 30STOCK INDEX SLIPPED 389 POINTS TO 180766 WHICH ALSO WAS THE SESSION'S LOW AND 20 STOCKS IN THE GAUGE FELL WHILE 9 ROSE THOUGH THE INDEX WAS PULLED DOWN FROM THE DAY'S HIGH OF 182075 THE MARKET HAD A LIMITED REACTION TO THE GERMAN BUNDESBANK'S DECISION TO MAINTAIN CURRENT INTERESTRATE LEVELS AS A REDUCTION WASN'T WIDELY EXPECTED FOR AT LEAST ANOTHER WEEK BUT IN PARIS STOCKS TUMBLED 14 HIT HARD BY DISAPPOINTMENT THAT GERMANY DIDN'T LOWER ITS RATES AND BY FLAGGING CONFIDENCE IN THE FRENCH FRANC INVESTORS HOPED FOR A GERMAN MONETARY EASING TO SUPPORT THE FRANC AND COOL TENSIONS IN THE EUROPEAN MONETARY SYSTEM AND THE POSSIBILITY OF A FRANC DEVALUATION IN THE ABSENCE OF A GERMAN EASING WHICH HAD BUOYED THE PARIS EXCHANGE RECENTLY BY ATTRACTING US INVESTORS WORKED AGAINST THE STOCK MARKET AS PARTICIPANTS WONDERED HOW FRENCH AUTHORITIES WOULD MANAGE ITS LATEST CURRENCY CRISIS MILAN SHARES ROSE ON STRENGTH IN THE INSURANCE SECTOR BUT SELECTIVE SELLING PARTLY RELATED TO POSITIONSQUARING AHEAD OF TECHNICAL DEADLINES LEFT LOSING ISSUES OUTNUMBERING ADVANCING ISSUES MADRID EQUITIES FELL AMID MOUNTING INSTABILITY ON THE FOREIGNEXCHANGE MARKET AND INVESTORS WORRIED THAT A SINKING SPANISH PESETA WOULD PREVENT THE CENTRAL BANK FROM LOWERING SPANISH INTEREST RATES THE MARKET ALSO WAS DISAPPOINTED ABOUT GERMANY'S UNCHANGED RATES STOCKHOLM EQUITIES ROSE FOR THE EIGHTH CONSECUTIVE SESSION ONCE AGAIN LED HIGHER BY THE TELECOMMUNICATIONS SECTOR ZURICH SHARES DROPPED BROADLY ON PROFITTAKING IN SYDNEY STOCKS ROSE SLIGHTLY THOUGH THE MAIN INDEX WAS OFF ITS HIGH FOR THE DAY CLOSING FRACTIONALLY LOWER IN TAIPEI PRICES FELL PULLED DOWN BY FINANCIAL ISSUES ON NEWS THAT SOME BROKERAGE HOUSES LINKED TO TAIWAN PROVINCIAL ASSEMBLYMEN TRIED TO TAKE PROFITS BY REVISING DIVIDEND PLANS OF THREE PROVINCIAL COMMERCIAL BANKS AMONG CORPORATE DEVELOPMENTS IN LONDON RANK ORGANISATION SLUMPED 20 PENCE OR 26 TO 747 PENCE 1122 THE LEISURE COMPANY'S PRETAX PROFIT FOR THE FIRST HALF ENDED MAY 15 WAS 957 MILLION 1438 MILLION COMPARED WITH A YEAREARLIER 198 MILLION RESTATED FROM 94 MILLION UNDER NEW ACCOUNTING FOR LOSSES ON SOLD BUSINESSES RANK ALSO PROPOSED AN ALTERNATIVE TO ITS ANNUAL DIVIDEND A SINGLE SPECIAL INTERIM PAYOUT OF 31 PENCE A SHARE ON SEPT 16 AND NO FINAL DIVIDEND OR NEW RANK SHARES VALUED AT 465 PENCE EACH A 50 PREMIUM THE ALTERNATIVE IS DESIGNED TO CIRCUMVENT A CHANGE IN BRITISH LAW THAT MADE CASH DIVIDENDS LESS VALUABLE TO PENSION FUNDS AND WEALTHY INDIVIDUALS IF STOCKHOLDERS REJECT THE PROPOSAL RANK WILL PAY AN INTERIM DIVIDEND OF 1025 PENCE A SHARE AND A FINAL DIVIDEND OF 2075 PENCE MAINTAINING THE 31PENCE ANNUAL PAYOUT FOR THE FOURTH YEAR IN A ROW IN MILAN FERRUZZI FINANZIARIA SANK 25 LIRE OR 59 TO 399 LIRE 25 US CENTS THE ITALIAN STOCKMARKET REGULATORY AGENCY CONSOB DENOUNCED FERRUZZI TO MAGISTRATES ACCUSING IT OF FALSE COMMUNICATIONS AND POSSIBLE BALANCESHEET FRAUD AFTER THE AGROINDUSTRIAL GIANT TOLD SHAREHOLDERS OF WIDER CONSOLIDATED LOSSES WITHOUT SUFFICIENT EXPLANATION A CONSOB INVESTIGATION INDICATED DEBTPLAGUED FERRUZZI WHICH IS UNDERGOING A RESTRUCTURING COULD HAVE BROKEN THE LAW IN ZURICH SANDOZ FELL 25 SWISS FRANCS TO 3340 FRANCS 221108 EVEN THOUGH THE PHARMACEUTICAL COMPANY SAID FIRSTHALF GROUP NET INCOME ADVANCED 10 TO 998 MILLION FRANCS 6607 MILLION IN HONG KONG TSINGTAO BREWERY CLASS H SHARES FINISHED AT 360 HONG KONG DOLLARS 46 US CENTS IN THE FIRST DAY OF TRADING TSINGTAO THE FIRST CHINESE STATEOWNED INDUSTRIAL COMPANY TO BE LISTED ON THE COLONY'S MARKET TRADED BETWEEN HK360 AND HK3675 AND ENDED 29 ABOVE ITS OFFERING PRICE OF HK280 IT WAS THE MOST ACTIVELY TRADED ISSUE OF THE DAY ACCOUNTING FOR 16 OF TOTAL TURNOVER MEANWHILE AN INITIAL OFFERING OF SHANGHAI PETROCHEMICAL IN HONG KONG CLOSES FRIDAY AND IT IS EXPECTED TO BE OVERSUBSCRIBED JUST AS TSINGTAO WAS SHANGHAI PETROCHEMICAL IS THE SECOND OF NINE STATEOWNED CHINESE FIRMS SCHEDULED FOR LISTING ABROAD 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 9307160095 930716 TECHNOLOGY SCIENTIST FOR CELLULAR GROUP URGES MORE HEALTH STUDIES NEW YORK AN EPIDEMIOLOGIST WORKING FOR THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION HAS RECOMMENDED THAT THE INDUSTRY FINANCE FURTHER STUDIES INTO A POSSIBLE LINK BETWEEN CELLULAR RADIO WAVES AND CANCER INDUSTRY OFFICIALS SAID THE FINDINGS BY DR GEORGE CARLO A PROFESSOR AT GEORGE WASHINGTON SCHOOL OF MEDICINE ARE SCHEDULED TO BE ANNOUNCED THIS MORNING IN WASHINGTON WHILE DR CARLOS'S REVIEW OF MORE THAN TWO DOZEN EXISTING SCIENTIFIC STUDIES DIDN'T INDICATE A CELLULARCANCER LINK HE'S EXPECTED TO SAY THAT TESTING HAS A LONG WAY TO GO TO ENSURE THE PHONES ARE ABSOLUTELY SAFE SAID ONE OFFICIAL FAMILIAR WITH TODAY'S PLANNED ANNOUNCEMENT THE CTIA HAS HIRED THE UNIVERSITY OF ALABAMA BIRMINGHAM AND UNIVERSITY OF CALIFORNIA BERKELEY TO REVIEW EXISTING SCIENTIFIC STUDIES INTO THE HEALTH EFFECTS OF ELECTROMAGNETIC FIELDS IN THE CELLULAR RADIO FREQUENCY A SEPARATE SCIENTIFIC PEER REVIEW GROUP WILL PRESENT ITS FINDINGS TO THE FOOD AND DRUG ADMINISTRATION BY THE END OF THE SUMMER THE OFFICIAL SAID 9307160094 930716 BUSINESS BRIEF LEGENT CORP FIRM CITED IN CLASS ACTION OVER 3RDQUARTER RESULTS LEGENT CORP VIENNA VA SAID THE COMPANY AND SEVERAL TOP EXECUTIVES WERE NAMED AS DEFENDANTS IN A SECURITIES CLASSACTION SUIT ALLEGING THAT LEGENT MADE FALSE AND MISLEADING STATEMENTS REGARDING ITS THIRDQUARTER RESULTS THE SUPPLIER OF SOFTWARE FOR MAINFRAME COMPUTERS SAID IT WILL DEFEND ITSELF AGAINST THE CHARGES FILED IN A FEDERAL COURT IN VIRGINIA THIS WEEK THE COMPANY SAID IT EXPECTS TO POST EARNINGS OF 26 CENTS A SHARE FOR THE THIRD QUARTER ENDED JUNE 30 COMPARED WITH 38 CENTS A YEAR EARLIER ANALYSTS' ESTIMATES HAD PEGGED LEGENT'S EARNINGS AT 53 CENTS A SHARE AN ATTORNEY FOR THE PLAINTIFFS COULDN'T BE REACHED 9307160093 930716 COMMODITIES GOLD FUTURES PRICE JUMPS 250 TO 39390 AS INVESTORS SHRUG OFF RECENT INFLATION DATA BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD INVESTORS SHRUGGED OFF RECENT TAME US INFLATION DATA AND BID UP THE ACTIVE AUGUST FUTURES CONTRACT 250 TO 39390 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE SILVER FOR SEPTEMBER DELIVERY SETTLED AT 5068 AN OUNCE UP 108 CENTS TRADERS AND ANALYSTS SAID THAT GOLD A FAVORITE HEDGE AGAINST INFLATION WAS DEMONSTRATING STAYING POWER IN AN ENVIRONMENT OF STABLE PRICES AND WAS POISED TO MAKE A RENEWED RUN TOWARD 400 GOLD HAD EASED SIGNIFICANTLY LAST WEEK AFTER STALLING AT 398 ON JULY 7 PERCEPTIONS OF BUOYANT ASIAN DEMAND FOR GOLD JEWELRY CONTINUES TO UNDERGIRD THE MARKET THEY SAID DESPITE RECENT INDICATORS THAT PRICE SENSITIVE DEMAND IN CHINA AND HONG KONG IN PARTICULAR APPEARS TO HAVE SLACKENED DEALERS ALSO NOTED THAT PROFESSIONAL INVESTORS CONTINUE TO SNAP UP GOLD BECAUSE THEY SEE BULLION AS A VEHICLE TO DIVERSIFY PORTFOLIOS AND TO HEDGE AGAINST CURRENCY VOLATILITY PEOPLE ARE THINKING HARD ABOUT FURTHER DIVERSIFICATION OF THEIR PORTFOLIOS AND ARE INVESTING IN GOLD SAID RICHARD WITTEN WHO HELPS MANAGE FOREIGNEXCHANGE AND COMMODITIES TRADING AT GOLDMAN SACHS & CO'S J ARON UNIT WE ARE GETTING INQUIRIES FROM LOTS OF NONTRADITIONAL PLACES HE ADDED OTHER WALL STREET INSTITUTIONS ARE HEARING THE SAME MESSAGE WE'VE SEEN AN UNDERLYING GENERAL DEMAND FOR GOLD AS PEOPLE LOOK TO DIVERSIFY THEIR ASSETS SAID KEN GETTINGER A SENIOR PRECIOUS METALS ANALYST WITH UNION BANK OF SWITZERLAND IN NEW YORK OVER THE LAST COUPLE OF MONTHS WE'VE SEEN AN ENORMOUS AMOUNT OF FUND BUYING WHICH CONTINUES TO DATE THE UBS ANALYST SAID THE MARKET SEEMS POISED FOR AN ASCENT ABOVE 400 WITHIN THE NEXT TWO WEEKS MR GETTINGER PREDICTED FOR NOW GOLD APPEARS TO BE TRADING IN A NARROW RANGE BETWEEN 390398 AN OUNCE GERARD POLLINO A SENIOR TRADER WITH MILLENIUM FUTURES GROUP IN NEW YORK SAID THAT AN INDICATOR OF POTENTIAL BULLISHNESS IN THE MARKET WAS THE LARGE LEVEL OF OPEN INTEREST OR THE TOTAL NUMBER OF FUTURES CONTRACTS YET TO BE LIQUIDATED AT THE COMEX SOME 204000 CONTRACTS MUCH OF THAT OPEN INTEREST IS PROBABLY LONG HE SAID REFERRING TO INVESTORS' BETS THAT UNDERLYING GOLD PRICES WILL RISE TOO MANY LONG POSITIONS IN THE MARKET HOWEVER COULD MAKE FOR A PRECIPITOUS FALL IF THE MARKET SUDDENLY TURNS BEARISH HE CAUTIONED MR POLLINO SAID THAT THE AUGUST CONTRACT WHICH HIT AN INTRADAY HIGH OF 39580 YESTERDAY CONTINUES TO RUN INTO STRONG RESISTANCE AT 396 A LEVEL WHERE SOME INVESTORS HAVE BEEN TAKING PROFITS AND WHERE SOME PRODUCERS NAMELY AUSTRALIAN MINING COMPANIES HAVE BEEN SELLING FORWARD BELOWGROUND INVENTORY IF WE CONTINUE TO SEE BUYING BY MANAGEDMONEY FUNDS THIS WILL MORE THAN OVERCOME THE PRODUCER SELLING AND MOVE THE MARKET HIGHER THE MILLENIUM PARTNER SAID IF GOLD WERE TO ONCE AGAIN FLIRT WITH THE 400 LEVEL IN THE NEAR TERM IT COULD ACCELERATE THE RALLY BY FORCING SHORTS OR THOSE BETTING THAT PRICES WILL FALL TO COVER THEIR POSITIONS HE ADDED SHORTCOVERING BY FUNDS CONTRIBUTED TO YESTERDAY'S GAINS IN GOLD TRADERS SAID MR WITTEN ECHOING OTHER ANALYSTS SAID THAT GOLD MAY FIND SUPPORT FROM INTERNATIONAL INVESTORS WHO IN THE WAKE OF REPEATED INTEREST RATE CUTS BY THE BUNDESBANK ARE BEGINNING TO SOUR ON DEUTSCHEMARKDENOMINATED ASSETS THE APPEAL OF THE DEUTSCHEMARK AS THE SINGULAR INFLATION HEDGE IS DOWN FROM WHAT IT WAS FIVE YEARS AGO BEFORE THE BERLIN WALL CAME DOWN INDEED TRADERS NOTE GOLD HAS RALLIED SHARPLY ON RECENT INTEREST RATE CUTS MADE BY THE GERMAN CENTRAL BANK BERNARD SAVAIKO AN ANALYST WITH PAINEWEBBER SAID THAT MANY GOLD BULLS SEE THE RECENT LULL IN USINFLATION AS A TEMPORARY PHENOMENON THAT LARGELY HAS BEEN DISCOUNTED IN THE OIL MARKET FOR INSTANCE THE EXTREME WEAKNESS IN CRUDE PRICES PROBABLY WON'T BE SUSTAINED BECAUSE THE DRAFT AGREEMENT BETWEEN THE UN AND IRAQ ON RENEWED EXPORTS BY BAGHDAD WILL RUN INTO SNAGS AND OPEC MAY MAKE SOME SORT OF GESTURES TO STABILIZE CRUDE PRICES HE SAID TO BREAK THE GOLD BULL'S BACK WE NEED TO SEE SIGNS OF FED TIGHTENING BUT MOST MONEYMARKET EXPERTS AND FED WATCHERS VIEW THAT AS A VIRTUAL IMPOSSIBILITY GIVEN THE POOR ECONOMIC CONDITIONS IN THE COUNTRY HE SAID IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES SOARED IN EARLY TRADING YESTERDAY FOLLOWING NATIONAL WEATHER SERVICE FORECASTS ISSUED AFTER THE CLOSE OF TRADING WEDNESDAY OF MORE COOL WEATHER AND ABOVEAVERAGE PRECIPITATION FOR THE WESTERN CORN BELT THE SIXTO10DAY AND 30DAY FORECASTS RATTLED TRADERS WHO FEARED FURTHER DAMAGE TO MIDWESTERN CORN AND SOYBEAN CROPS AT THE HIGH POINT FOR THE DAY SOYBEAN FUTURES FOR NOVEMBER DELIVERY HIT 734 A BUSHEL ON THE CHICAGO BOARD OF TRADE BEFORE RAPIDLY RECEDING PULLING FUTURES PRICES BACK TO EARTH WAS THE REALIZATION THAT THE EASTERN CORN BELT MAINLY IN OHIO INDIANA AND PARTS OF ILLINOIS MAY ACTUALLY HAVE AS GOOD A HARVEST AS LAST YEAR IF NOT BETTER SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO IN CHICAGO NOVEMBER SOYBEANS CLOSED ONLY ONE CENT A BUSHEL HIGHER AT 712 A BUSHEL ENERGY CRUDE AND OIL PRODUCT FUTURES PRICES SETTLED A BIT HIGHER AS SOME SKEPTICISM ENTERED OIL MARKETS ABOUT AN AGREEMENT BETWEEN THE UNITED NATIONS AND IRAQ OVER A POSSIBLE SALE OF CRUDE FOR HUMANITARIAN PURPOSES THE TALKS ADJOURNED WITHOUT RESULT WHILE IRAQI DELEGATES SEEK DIRECTION FROM THEIR GOVERNMENT MANY TRADERS HAD ANTICIPATED AN ANNOUCEMENT SAYING THAT AN AGREEMENT WAS NEAR ALTHOUGH A U N SPOKESMAN WAS QUOTED AS SAYING THAT WHILE THE UN CAN'T RULE OUT THE POSSIBILITY THAT THE IRAQIS MIGHT NOT RETURN TO THE TABLE HE ADDED THAT IT'S THE EXPECTATION THAT THEY WOULD RESUME THE TALKS PROBABLY AS EARLY AS NEXT WEEK AUGUST CRUDE GAINED 18 CENTS A BARREL IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE TO SETTLE AT 1767 9307160091 930716 LETTERS TO THE EDITOR DON'T GET US WRONG WE WANT THE BUSINESS IN YOUR ARTICLE FOREIGN INVESTORS FLEEING KOREA BLAMING OBSTRUCTIVE REGULATIONS MAY 10 YOU ACCURATELY POINT OUT CERTAIN OBSTACLES IE RESTRICTIONS ON BUSINESS ACTIVITIES BUREAUCRATIC RED TAPE TO FOREIGN INVESTMENT IN KOREA THE RECENT SLOWDOWN IN NEW FOREIGN INVESTMENT IS A MATTER OF CONCERN TO THE KIM YOUNG SAM ADMINISTRATION ESPECIALLY AT A TIME WHEN THE NATION MUST RESTRUCTURE ITS INDUSTRIAL BASE AROUND MORE ADVANCED FIELDS OF HIGH TECHNOLOGY YOU ARE ALSO CORRECT THAT THE KOREAN GOVERNMENT IS IMPLEMENTING FARREACHING REFORMS UNDER THE ADMINISTRATION'S FIVEYEAR NEW ECONOMY PLAN 199397 THE BASIC THRUST IS TO PROMOTE THE MANAGERIAL AUTONOMY INITIATIVE AND CREATIVITY OF THE PRIVATE SECTOR THROUGH DRASTICALLY REDUCING EXISTING RULES AND REGULATIONS ON BUSINESSES APPLYING EQUALLY TO DOMESTIC AND FOREIGNOWNED COMPANIES SUCH DEREGULATION WILL ALSO HELP ELIMINATE ADMINISTRATIVE UNCERTAINTY AND ARBITRARINESS KEY AREAS OF POTENTIAL FRUSTRATION FOR FOREIGN INVESTORS TO EXPAND THE RANGE OF OPPORTUNITIES FOR FOREIGN INVESTORS RESTRICTIONS WILL BE EASED OR REMOVED IN 224 BUSINESS LINES DURING THE NEXT FIVE YEARS AS WILL RULES REQUIRING JOINT INVESTMENT IN 50 OTHER INDUSTRIES BEGINNING EARLY NEXT YEAR FOREIGN INVESTORS WILL WITH FEW EXCEPTIONS BE ALLOWED TO PURCHASE LAND IN KOREA FOR BUSINESS PURPOSES REGARDLESS OF THE TYPE OF BUSINESS AT PRESENT SUCH PERMISSION IS GIVEN ONLY TO INVESTMENTS IN THE MANUFACTURING HIGHTECH SERVICES BANKING INSURANCE AND HOTEL INDUSTRIES FROM JANUARY 1993 THE KOREAN GOVERNMENT HAS PERMITTED FOREIGN HIGHTECH MANUFACTURERS OPERATING IN KOREA TO TAP SHORTTERM OVERSEAS FINANCING FOR A PERIOD NOT EXCEEDING THREE YEARS PREVIOUSLY THIS PRIVILEGE WAS DENIED TO ALL FOREIGN INVESTORS AND REMAINS SO FOR DOMESTIC ENTERPRISES UNDER PROVISIONS OF THE SPECIAL ACT FOR BUSINESS DEREGULATION PASSED IN MAY FOREIGN INVESTORS WILL ENJOY RELAXED PROCEDURES FOR ESTABLISHING BUSINESSES AND BUILDING FACTORIES IN KOREA THE ACT ALSO SIMPLIFIES TRADE PROCEDURES AND INSPECTIONS OF MACHINERY AND FACILITIES THE OFTEN CUMBERSOME AND CONFUSING DOCUMENTATION REQUIREMENTS AND DELAYS IN PROCESSING APPROVALS WHICH YOU CITE AS A COMMON SOURCE OF COMPLAINTS BY FOREIGN FIRMS ARE ALSO BEING DRASTICALLY CURTAILED REFLECTING FAVORABLE CHANGES IN KOREA'S INVESTMENT CLIMATE MANY HIGHTECH COMPANIES ARE NOW PLANNING TO INVEST HERE EITHER ON THEIR OWN OR THROUGH INDUSTRIAL PARTNERSHIPS WITH KOREAN FIRMS THESE INCLUDE SEMICONDUCTOR EQUIPMENT MANUFACTURERS SUCH AS APPLIED MATERIALS INC AND LAM RESEARCH CORP OF THE US AND DAI NIPPON SCREENS CO OF JAPAN ALSO MOTOROLA A MAJOR SUPPLIER OF HIGH VALUEADDED TRANSISTORS AND TELECOMMUNICATIONS SYSTEMS DECIDED TO INCREASE ITS CAPITAL INVESTMENT IN KOREA MORE RECENTLY MERCEDEZBENZ HAS CONCLUDED A JOINTVENTURE AGREEMENT TO MANUFACTURE PASSENGER CARS HERE 9307160090 930716 BUSINESS BRIEF MORRISON KNUDSEN CORP RISE IN NET INCOME OF 18 IS POSTED FOR SECOND PERIOD MORRISON KNUDSEN CORP CITING CONTINUED STRENGTH IN ITS RAIL ENGINEERING AND CONTRUCTION BUSINESS POSTED AN 18 INCREASE IN SECONDQUARTER NET INCOME EARNINGS INCREASED TO 82 MILLION OR 27 CENTS A SHARE FROM 7 MILLION OR 23 CENTS A SHARE A YEAR EARLIER REVENUE GREW 25 TO 6554 MILLION FROM 5246 MILLION THE BOISE IDAHO COMPANY SAID OPERATING EARNINGS FROM ITS RAILSYSTEM BUSINESS INCREASED TO 382 MILLION FROM 203000 A YEAR AGO WHILE ENGINEERING AND CONSTRUCTION OPERATING EARNINGS GREW TO 14 MILLION FROM 139 MILLION THE COMPANY BOOKED 6079 MILLION IN ENGINEERING AND CONSTRUCTION BUSINESS IN THE QUARTER UP FROM 2598 MILLION A YEAR AGO BUT NEW RAILSYSTEMS BOOKINGS IN THE QUARTER FELL TO 1292 MILLION FROM 1825 MILLION THE FALLOFF A COMPANY SPOKESMAN SAID CAME BECAUSE THERE HAVEN'T BEEN AS MANY NEW US RAILSYSTEM PROCUREMENT JOBS OFFERED IN 1993 AS IN 1992 THE ENGINEERING AND CONTRUCTION CONCERN SAID ITS BACKLOG AT JUNE 30 WAS 456 BILLION DOWN FROM 468 BILLION A YEAR EARLIER CHIEF EXECUTIVE OFFICER WILLIAM AGEE SAID THE COMPANY IS OPTIMISTIC ABOUT THE THIRD QUARTER AND BEYOND 9307160089 930716 THE EMPEROR OF HEILONGCUN BY ANDREW B BRICK HEILONGCUN CHINA THE NOTICE FROM THE SICHUAN PROVINCE COMMUNIST PARTY SECRETARY SAYS ONLY THAT A GOOD CADRE HAD DIED BUT AS VILLAGERS GATHER FOR A LAST LOOK AT 70YEAROLD CHEN WEN NESTLED IN HIS WOODEN COFFIN IT IS CLEAR THAT THEY HAVE LOST MORE THAN JUST THE LOCAL PARTY LEADER WHO HAD RUN THIS HAMLET DEEP IN THE WESTERN INTERIOR OF CHINA FOR THREE DECADES THE THE EMPEROR IS DEAD SAYS LI ANTIAN A NEIGHBOR OF THE DECEASED AS SHE COMMITS TO A FLAME IN A SMALL BUDDHIST SHRINE STRIPS OF WHITE AND GREEN PAPER MS LI AND HER NEIGHBORS ARE BURNING NOT THE USUAL CHINESE GHOST MONEY TO HELP SPEED THE DEAD'S JOURNEY TO THE NEXT WORLD BUT GOVERNMENT IOUS PAID TO PEASANTS FOR THEIR PRODUCE IN THIS ACT OF SILENT DEFIANCE THE VILLAGERS ARE ALSO BURNING THEIR FAITH IN THE COMMUNIST PARTY THEY KNOW COMMUNISM IS DEAD THAT BELIEF IS AFFIRMED EVERY TIME THE BANKRUPT GOVERNMENT GIVES THEM SUCH IOUS IN EXCHANGE FOR THEIR CORN WHEAT AND RICE AND WITH EVERY DAY THAT INFLATION EATS AWAY AT THEIR STANDARD OF LIVING MOST OF ALL THEY'VE KNOWN IT IN THE PERSON OF PARTY MANDARINS LIKE CHEN WEN ONE OF THE MOST SIGNIFICANT RESULTS OF 15 YEARS OF DENG XIAOPING'S REFORMS HAS BEEN A DECISIVE SHIFT IN ECONOMIC DECISIONMAKING FROM BEIJING TO THE PROVINCES THIS HAS WORKED TO THE ADVANTAGE OF THE COASTAL PROVINCES WHICH HAVE ANNUAL GROWTH RATES IN THE DOUBLE DIGITS GUANGDONG ON THE BORDER OF HONG KONG AND FUJIAN JUST ACROSS FROM TAIWAN HAVE GROWN RICH IN THE PROCESS BUT MUCH OF THE REST OF THE COUNTRY HASN'T FARED NEARLY SO WELL AS A VISIT TO A TOWN AS POOR AS HEILONGCUN ILLUSTRATES ONE OF THE LEAST UNDERSTOOD ASPECTS OF THAT POWER SHIFT AWAY FROM BEIJING HAS BEEN THE EMERGENCE OF LOCAL TYRANTS LIKE HEILONGCUN'S CHEN WEN MASTERFULLY CONTROLLING THE LOCAL COMMUNIST PARTY HIERARCHY THESE LITTLE EMPERORS RULE THEIR TINY EMPIRES IN A MANNER THAT WOULD HAVE MADE OLDTIME POLITICAL MACHINE BOSSES BLUSH BECAUSE THEIR METHODS ARE GROUNDED IN TRADITION AND BECAUSE THEY ARE OFTEN RELATIVES THE PEASANTS RESENT BUT DO NOT NECESSARILY DESPISE THEM HERE IN HEILONGCUN THE VILLAGE'S 612 INHABITANTS MAKE AN AVERAGE OF 85 A YEAR ACCORDING TO LOCAL PARTY NUMBERS THAT'S 20 LESS THAN THE AVERAGE SALARY OF CHINA'S OTHER 900 MILLION PEASANTS AND 265 LESS THAN THE AVERAGE URBAN LABORER OCT 23 1978 SAYS ZHOU HONGLI A FARMER WHO HAS COME TO THE IOU BURNING BY HIMSELF AND NOW SITS ON A DUSTY CURB OPPOSITE PARTY HEADQUARTERS DRINKING A BEER THAT WAS THE BEST DAY OF MY LIFE ON THAT DAY PARTY SECRETARY CHEN ACTING ON THE INSTRUCTIONS OF DENG XIAOPING DIVIDED AMONG THE COMMUNE'S 98 HOUSEHOLDS 98 EQUAL PORTIONS OF LAND MR ZHOU DREW AN EXCELLENT PLOT THINGS WENT WELL AT FIRST HIS PLOT THRIVED AND HE ENLARGED HIS HOUSE MY WHOLE FAMILY MOVED IN CHILDREN AND WIFE INLAWS AUNTS AND UNCLES THEN THE WORM TURNED OR AS MR ZHOU PUTS IT MY FARM WAS TOO SMALL AND MY FAMILY TOO BIG FOR MR ZHOU AND MANY OF HIS NEIGHBORS SQUEEZED ONTO PLOTS OF NO MORE THAN THREEQUARTERS OF AN ACRE HEILONGCUN'S AGRICULTURAL MIRACLE COULD NOT BE SUSTAINED THERE WAS SIMPLY NOT ENOUGH LAND TO GIVE TO THE TILLERS AND THERE WAS ONLY SO MUCH MONEY TO BE MADE OFF THE LAND ESPECIALLY SINCE THE MAIN CUSTOMER WAS THE GOVERNMENT IN THE FIRST HALF OF THE 1980S THE CENTRAL PLANNERS IN BEIJING INCREASED THE PRICES OF GOVERNMENT CROP PURCHASES BY 50 98 FOR GRAIN THE CASHSTRAPPED CENTRAL GOVERNMENT HAS NOT BEEN ABLE TO AFFORD SUCH GENEROSITY IN MANY YEARS BUT IT STILL IS THE MAIN BUYER OF MOST OF HEILONGCUN'S PRODUCE WHETHER THE FARMERS LIKE IT OR NOT UNTIL 1984 FARMERS WERE OBLIGED TO HAND OVER PART OF THEIR HARVESTS TO THE GOVERNMENT AT FIXED PRICES NOW THEY SIGN A CONTRACT TO DO THE SAME THING SAYS MR ZHOU HIS INCOME HAS BEEN STAGNANT SINCE 1987 WE SAW THE PROBLEM COMING YEARS AGO SAYS A STOUT MIDDLEAGED WOMAN WHO WITH ABOUT 10 OTHERS HAS GATHERED TO GOSSIP ESPECIALLY WHEN CHEN WEN WENT TO SCHOOL IN 1987 THE SCHOOL TO WHICH SHE REFERS WAS A SIXWEEK SEMINAR IN BEIJING AT THE STATE TRAINING CENTER FOR CADRES FROM POOR AREAS THE TOPIC HOW VILLAGES CAN MAKE ENDS MEET BY STARTING BUSINESSES OLD CHEN RETURNED FROM BEIJING A NEW MAN A BUSINESSMAN SAYS MR ZHOU ADDS THE STOUT WOMAN WITH DISGUST HE CAME BACK A BIG POTATO HE EVEN CAME WITH NAMECARDS THE PARTY SECRETARY QUICKLY STARTED A TOWNSHIP VILLAGE ENTERPRISE A DENGERA EUPHEMISM FOR A VILLAGEOWNED BUSINESS WITH A NEARBY VILLAGE AFTER ABOUT A YEAR TO BOOST ITS PROFIT MARGIN THE OTHER VILLAGE STARTED ISSUING LENGTHY REGULATIONS AND DEMANDS FOR FEES THEY WERE RESPONSIBLE FOR HARVESTING THE SILK COCOONS AND WE WERE RESPONSIBLE FOR TRANSPORTING THEM TO HEILONGCUN TO BE SPUN INTO FABRIC AND DYED SAYS MR ZHOU SLOWLY THOUGH THE ROAD PERMITS BECAME ROAD TAXES AND THINGS GOT TENSE ON THE NIGHT OF SEPT 23 1988 THE BUSINESS PARTNERS IN THE OTHER VILLAGE DECIDED TO EXACT THE PENALTIES FOR BACK TAXES BY RAIDING HEILONGCUN BURNING DOWN THE TEXTILE FACTORY AND STEALING THE JUTE BAGS CLOTH SACKS AND BASKETS THAT HAD BEEN GATHERED FOR THE COMING HARVEST PARTY BIGWIGS IN THE DISTRICT SEAT GUANGAN KICKED THE CADRES WHO LED THE RAID OUT OF THE PARTY SAYS LI ANTIAN SINCE THEN THOUGH THEY HAVE GONE INTO BUSINESS FOR THEMSELVES MAKING RAZOR BLADES THEY'RE MILLIONAIRES NOW AFTER THIS EXPERIENCE MOST OF HEILONGCUN'S VILLAGERS SOURED ON PRIVATE BUSINESS BUT CHEN WEN'S MONEYMAKING ASPIRATIONS NEVER DIMINISHED HE WENT INTO BUSINESS FOR HIMSELF SAYS ZHOU HONGLI WE BECAME HIS BUSINESS THE EMPEROR ENTERED THE EXTORTION RACKET OLD CHEN USED TO SAY THAT THERE EXISTED THREE STAGES OF CHINESE COMMUNISM MAOISM DENGISM AND CHENISM OFFERS THE SHIRTLESS AND SHOELESS TSAI WENGER MANAGER OF THE HAMLET'S TIRE SHOP THE DRIVING FORCE BEHIND CHENISM WAS THE USE OF POWER TO LINE HIS COFFERS CHEN WEN LIVED IN THE VILLAGE'S ONLY HOME WITH CONCRETE FLOORS A SATELLITE DISH SITS ON THE ROOF HOW DID HE MAKE ALL THIS MONEY FROM HIS SUBJECTS THE VILLAGERS ESTIMATE THAT SINCE 1990 THEY HAVE PAID 40 OF THEIR YEARLY INCOME IN LOCAL FEES EVERY MONTH CHEN WEN'S SOLDIERS FROM THE LOCAL PUBLIC SECURITY BUREAU WOULD SHOW UP AT THE DOOR TO COLLECT EDUCATION FEES SAYS MR TSAI CHARGES WERE ALSO LEVIED FOR ROAD CONSTRUCTION AND LAND IMPROVEMENT THERE WAS A HEAD TAX A GRAIN TAX A TAXCOLLECTING TAX AND TAXES THAT WERE SUPPOSED TO GO TO FAMILIES OF SOLDIERS FEES WERE EVEN ASSESSED A FEW TIMES ON VILLAGERS WHO VIEWED THE SUNDAY PRESENTATION OF WALT DISNEY ON NATIONAL TELEVISION CHEN GOT A PIECE OF ALL THIS ACTION BUT THE WORST ARE THE IOUS COMPLAINS LI ANTIAN SHE HAS BAI ZHANG LITERALLY WHITE STRIPS OF PAPER THAT DATE BACK AS FAR AS OCTOBER 1991 AND AS RECENTLY AS THE BEGINNING OF THIS MONTH THERE ARE GOLD IOUS GIVEN OUT BY BANKS WHEN THEY DO NOT HAVE THE MONEY TO HONOR CHECKS PAID INTO ACCOUNTS THERE ARE RED IOUS GIVEN TO WORKERS IN STATE INDUSTRIES AND THERE ARE GREEN IOUS HANDED OUT BY THE POST OFFICE TO PEASANTS WHO TRY TO REDEEM MONEY ORDERS FROM FAMILY MEMBERS WORKING IN CITIES FOR MR TSAI THE GREEN IOUS ARE THE WORST OLD CHEN DIRECTED TWO OF MY BROTHERS TO GO TO SHANGHAI ON THE OTHER SIDE OF CHINA TO FIND WORK AND THEN SEND THE MONEY BACK TO HEILONGCUN THROUGH THE POSTAL SYSTEM BUT SINCE JANUARY THE POST OFFICE IN QIKOU ABOUT 10 MILES AWAY HASN'T HAD THE MONEY TO HONOR MY BROTHERS' MONEY ORDERS ALL WE GET ARE THESE GREEN STRIPS OF PAPER WHAT DID MR TSAI DO I SCREAMED AT THEM WHAT DID THE EMPEROR DO HE TOOK TIRES FROM MY SHOP WHEN ASKED IF BEIJING COULD HELP TO IMPROVE THEIR LOT THE PLUMP WOMAN RESPONDS BEIJING'S JUST ANOTHER CITY SHE THEN ASKS WHAT'S THAT MAN'S NAME THE COMMUNIST PRESIDENT JIANG ZEMIN NO SHE DOESN'T KNOW WHO HE IS ZHU RONGJI THE NATION'S ECONOMICS EMPEROR AND NEW CENTRAL BANK GOVERNOR NO SHE DOESN'T KNOW WHO HE IS EITHER PREMIER LI PENG YES YES HIM SHE SAYS HE CAN'T EVEN MAKE THE POST OFFICE RUN THAT THIS WOMAN FROM A VILLAGE IN THE CHINESE HINTERLAND CAN'T NAME HER NATION'S LEADERS SPEAKS VOLUMES ABOUT LIFE IN RURAL CHINA TODAY THE PEASANTS WHO HELPED PUT THE COMMUNIST PARTY IN POWER NOW SEEM UTTERLY UNCONCERNED WITH IF NOT DISDAINFUL OF WHO'S WHO IN BEIJING I AM A ZHOU FIRST A MEMBER OF MY VILLAGE SECOND AND A CHINESE THIRD SAYS ZHOU HONGLI THE CROWD MURMURS AGREEMENT MR ZHOU AND HIS NEIGHBORS SHARE A CULTURAL HERITAGE WHOSE PHYSICAL REMAINS SPRAWL IN OFTNEGLECTED ABUNDANCE FROM ONE END OF THE GREAT WALL TO ANOTHER BUT WHO CARES THEIR WORLD IS HEILONGCUN A SINGLE PIECE IN A PUZZLE OF RIGIDLY SEPARATE LOCAL ECONOMIES CALLED CHINA TODAY ONLY THE CHINESE NEW YEAR UNITES CHINA SAYS MR ZHOU AND WHAT UNITES HEILONGCUN THE DEATH OF A RELATIVE LIKE THE EMPEROR CHEN WEN WHO WAS INDIRECTLY RELATED TO THREEQUARTERS OF THE VILLAGE HAD HE NOT BEEN SAYS THE STOUT WOMAN WE WOULD HAVE KILLED HIM LONG AGO MR BRICK IS DEPUTY EDITORIAL PAGE EDITOR OF THE ASIAN WALL STREET JOURNAL 9307160087 930716 LETTERS TO THE EDITOR LITERARY FUNDING NO ANTIWHITE BIAS ROGER KIMBALL'S JUNE 24 EDITORIAL PAGE ARTICLE AND ITS HEADLINE DIVERSITY QUOTAS AT NEA SKEWER MAGAZINE LEAVE A FALSE IMPRESSION OF THE STATE OF AFFAIRS AT THE NATIONAL ENDOWMENT FOR THE ARTS THE HUDSON REVIEW IS A WONDERFUL LITERARY MAGAZINE AND CERTAINLY WORTHY OF FEDERAL SUPPORT BUT A LOOK AT THE FUNDING HISTORY OF LITERARY MAGAZINES AT THE NEA MIGHT GIVE A CLEARER PICTURE OF THE SITUATION OVER THE PAST SIX YEARS NINE MAGAZINES HAVE RECEIVED GRANTS EVERY YEAR AND 17 HAVE RECEIVED GRANTS IN FIVE OF THOSE YEARS INCLUDING THE HUDSON REVIEW OF THESE 26 MAGAZINES ONE IS RUN BY A PERSON OF COLOR THE AMERICAS REVIEW THE OTHER 25 ARE RUN BY WHITE PEOPLE AND PRIMARILY PUBLISH WHITE WRITERS TO STRETCH MR KIMBALL'S POINT WE COULD INCLUDE OTHER GROUPS THEN FOUR OF THESE MAGAZINES MIGHT BE CONSIDERED PRIMARILY WOMEN'S OR GAY/LESBIAN CONTINUING TO GIVE MR KIMBALL THE BROADEST POSSIBLE RANGE FOR HIS PERCEIVED QUOTAS IN 1993 EIGHT OF 43 MAGAZINES 18 RECEIVING GRANTS MIGHT BE CONSIDERED WOMEN'S GAY OR MULTICULTURAL FOUR OF THOSE 9 ARE RUN BY PEOPLE OF COLOR THE NEA LITERARY PUBLISHING CATEGORY ALSO AWARDS GRANTS TO LITERARY PRESSES OVER THE PAST SIX YEARS SEVEN PRESSES HAVE RECEIVED GRANTS EVERY YEAR AND SIX HAVE RECEIVED GRANTS IN FIVE OF THOSE YEARS OF THESE 13 PRESSES ONE IS RUN BY A PERSON OF COLOR AND ONE OTHER PUBLISHES A LARGE BODY OF WORK BY LATIN AMERICAN WRITERS ALTHOUGH IT IS RUN BY TWO WHITE PEOPLE THIS GROUP INCLUDES NO WOMEN'S OR GAY PRESSES IN THE PAST YEAR SIX OF THE 23 PRESSES 26 RECEIVING GRANTS MIGHT BE CONSIDERED MULTICULTURAL WOMEN'S OR GAY SINCE THE ATTACKS AGAINST THE NEA BEGAN IN PART RESULTING IN MORE DOLLARS TO STATE ARTS AGENCIES AND FEWER TO THE DISCIPLINE PROGRAMS THE LITERARY PUBLISHING CATEGORY BUDGET HAS BEEN CUT BY MORE THAN 16 AND THIS YEAR AWARDED 66 GRANTS TO PRESSES AND MAGAZINES IN 28 STATES AS COMPARED WITH THE 91 AWARDED IN THE YEAR BEFORE THE CUTS WERE INSTITUTED THE LITERATURE PROGRAM'S BUDGET IS INSUFFICIENT TO FUND EVERY WORTHY APPLICANT THE HUDSON REVIEW WAS NOT THE ONLY WORTHY MAGAZINE TO BE DENIED A GRANT IT WAS IN THE COMPANY OF MANY MULTICULTURAL MAGAZINES AS WELL THE PROBLEM IS NOT QUOTAS RATHER IT IS A LACK OF ADEQUATE FUNDING AT THE NEA TO SUPPORT A FULL RANGE OF DESERVING MAGAZINES AND PRESSES MR KIMBALL IMPLIES THOUGH DOES NOT STATE THAT SOMEHOW DIVERSITY QUOTAS ARE IN FORCE AT THE NEA AND SOMEHOW THE CLINTON ADMINISTRATION IS CONNECTED TO THIS STATE OF AFFAIRS THE PANEL THAT TURNED DOWN THE HUDSON REVIEW MET IN DECEMBER 1992 WHILE MR BUSH WAS STILL IN OFFICE THIS PANEL WAS SELECTED AND APPROVED BY THE BUSH ADMINISTRATION IN THE SUMMER OF 1992 THE PRIMARY CRITERIA USED BY NEA PANELS IN JUDGING APPLICANTS HAS ALWAYS BEEN AND CONTINUES TO BE ARTISTIC MERIT THOSE INTERESTED IN HAVING A VOICE IN THE FORMATION OF APPLICATION GUIDELINES WHICH INCLUDE THE REVIEW CRITERIA CAN ATTEND THE PUBLIC MEETINGS WHERE THESE GUIDELINES ARE REVIEWED EACH YEAR THE ISSUE OF PUBLIC ARTS FUNDING AND CULTURAL DIVERSITY IS GOING TO BE RESOLVED THROUGH OPEN DIALOGUE NOT MISLEADING ACCUSATIONS THE LITERARY NETWORK IS A JOINT EDUCATION AND INFORMATION PROJECT OF POETS & WRITERS INC AND THE COUNCIL OF LITERARY MAGAZINES AND PRESSES 9307160085 930716 BUSINESS BRIEF GILLETTE CO SECONDPERIOD NET ROSE 12 ON STRENGTH OF RAZOR SALES WITH STRONG RAZOR SALES OVERCOMING MIXED RESULTS IN OTHER DIVISIONS GILLETTE CO REPORTED NET INCOME ROSE 12 TO 1347 MILLION OR 61 CENTS A SHARE IN THE SECOND QUARTER FROM 1205 MILLION OR 55 CENTS A SHARE A YEAR EARLIER SALES ROSE 3 TO 124 BILLION FROM 120 BILLION THE BOSTON COMPANY SAID SALES AND EARNINGS GAINS ALSO CAME DESPITE ECONOMIC WEAKNESS IN EUROPE AND THE UNFAVORABLE EFFECTS OF CURRENCY TRANSLATIONS FROM A STRONGER DOLLAR ALTHOUGH THE COMPANY REPORTED NO FIGURES FOR INDIVIDUAL DIVISIONS IT SAID BLADE AND RAZOR SALES WERE CONSIDERABLY HIGHER AND THAT SALES OF TOILETRIES WERE UP WHILE SALES OF BRAUN STATIONERY AND ORALB PRODUCTS WERE LOWER FOR THE SIX MONTHS GILLETTE REPORTED NET OF 1384 MILLION OR 62 CENTS A SHARE AFTER A SPECIAL CHARGE DOWN 45 FROM 2499 MILLION OR 113 A SHARE IN 1992'S FIRST HALF SALES WERE 245 BILLION UP 2 FROM 241 BILLION BEFORE THE CHARGE OF 1386 MILLION FOR CHANGES IN ACCOUNTING PRINCIPLES NET FOR THE HALF WAS 2770 MILLION UP 11 FROM 1992 9307160083 930716 THE AMERICAS NAFTA PART OF THE TRADEENVIRONMENT SOLUTION BY KATHRYN S FULLER FROM THE WINDOW OF A LIGHT AIRCRAFT A MILE ABOVE THE YUCATAN PENINSULA WHAT MAY BE THE FIRST ENVIRONMENTAL EFFECTS OF THE NORTH AMERICAN FREE TRADE AGREEMENT APPEAR ON THE LANDSCAPE BELOW ORANGE GROVES PLANTED IN ANTICIPATION OF EXPANDING US CITRUS MARKETS THREATEN NATIVE FORESTS AND THE DIVERSITY OF SPECIES THAT DEPEND UPON THEM NEVERTHELESS DESPITE FREE TRADE'S POTENTIALLY FARREACHING ENVIRONMENTAL IMPACTS OPPOSITION TO NAFTA MAY NOT BE AN EFFECTIVE WAY TO DEAL WITH THEM IT MAY IN FACT BE COUNTERPRODUCTIVE NAFTA AS A POLITICAL ISSUE HAS BEEN HIGHLY ABSORBING FOR THE ENVIRONMENTAL COMMUNITY ALTHOUGH ASSESSMENTS OF THE TRADE PACT VERY WIDELY ENVIRONMENTALISTS AGREE THAT TRADE POLICY IS NOT SOMETHING THEY CAN AFFORD TO IGNORE TRADEDRIVEN FLOWS OF CAPITAL AND PATTERNS OF RESOURCE CONSUMPTION AFFECT VIRTUALLY EVERY FACET OF THE ENVIRONMENT AS A RESULT MANY OF THE CONSERVATION GAINS OF THE PAST TWO DECADES COULD BE LOST TO EVEN SMALL SHIFTS IN INTERNATIONAL TRADE MEXICO'S TIMBER INDUSTRY PROVIDES A GOOD CASE STUDY IN THE COUNTRY'S SOUTHEASTERN REGION A NUMBER OF SMALLSCALE COMMUNITYRUN OPERATIONS MANAGE BROAD TRACTS OF NATIVE FOREST UNDER A CONSERVATION MODEL WHILE THESE OPERATIONS PROTECT A WEALTH OF SPECIES AND ECOLOGICAL FUNCTIONS THEY OPERATE IN THE ECONOMIC MARGIN AND ARE ENDANGERED BY SHIFTING TERMS OF TRADE AS TARIFFS DECLINE THESE OPERATIONS ARE AT ECONOMIC RISK FROM TIMBER INDUSTRIES IN THE US AND CANADA TO MINIMIZE MARKET LOSSES FOREST PRODUCERS IN MEXICO FACE INCREASING PRESSURE TO CUT MORE TREES AND CONCENTRATE OPERATIONS IN SCARCE OLDGROWTH FORESTS WHERE THEY CAN OBTAIN THE HIGHESTVALUE TIMBER THE ENVIRONMENTAL COST OF COMPETING WITH THE US TIMBER INDUSTRY IS SIMPLY TOO GREAT AND AS IS OCCURRING NOW IN THE YUCATAN PRESSURE TO CONVERT LAND TO CITRUS AND BEEF FOR AMERICAN MARKETS MAY ACCELERATE FOREST LOSS THE FORESTINTOCITRUS SCENARIO IS INSTRUCTIVE FOR SEVERAL REASONS FIRST IT SHOWS THAT THE ENVIRONMENTAL IMPACTS OF FREE TRADE MAY BE FELT FAR BEYOND THE HIGHLYPOLLUTED BORDER AREA WHICH HAS SO PREOCCUPIED US ENVIRONMENTAL GROUPS SECOND IT DEMONSTRATES THAT ENFORCEMENT OF USSTYLE LAWS IN MEXICO IS NOT A MAGIC SOLUTION TRADEENVIRONMENT EFFECTS ARE TOO DIFFUSE OFTEN LYING BEYOND THE REACH OF EXISTING LEGAL REGIMES FINALLY IT LENDS SOME NEEDED PERSPECTIVE TO THE CLAIM THAT US INDUSTRY STANDARDS FOR ENVIRONMENTAL PROTECTION ARE ALWAYS SUPERIOR TO MEXICAN STANDARDS TO THE CONTRARY MEXICAN SMALLSCALE FORESTRY OPERATIONS ARE ECOLOGICALLY PREFERABLE TO SINGLESPECIES TREE PLANTATIONS IN THE US THAT SUPPORT COMPARATIVELY LITTLE WILDLIFE THIS LAST POINT DESERVES MENTION IN THE US ENVIRONMENTTRADE DEBATE WHICH HAS TOO OFTEN DIGRESSED INTO A NATIONALIST SOMETIMES PROTECTIONIST DIALOGUE WITH INADEQUATE APPRECIATION OF THE ECONOMIC SOCIAL AND ENVIRONMENTAL CHALLENGES FACED BY MEXICO THE REAL SITUATION IS LIKELY TO BE MUCH LESS ONESIDED WITH IMPACTS GOOD AND BAD ON BOTH SIDES OF THE BORDER STILL IF FOREST LOSS IN MEXICO IS A FREE TRADE OUTCOME WHY SHOULD AN ENVIRONMENTAL GROUP SUPPORT NAFTA THE ANSWER LIES IN THE FACT THAT THE CHANGES THAT MANY FEAR WILL ENSUE AS A RESULT OF THE TREATY ARE HAPPENING ALREADY EVEN WITHOUT A REGIONAL TRADE PACT MEXICAN TIMBER PRODUCERS ARE UNDER PRESSURE NOW FROM INCREASING IMPORTS OF CHEAPER AMERICAN WOOD AS A RESULT OF TARIFF REDUCTIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE FURTHERMORE LAND HAS BEEN CLEARED ALONG ITS GULF COAST SINCE THE 1980S FOR CITRUS EXPORTS UNDER A MORE LIBERALIZED TRADE REGIME IN THAT SECTOR MUCH THE SAME CAN BE SAID ABOUT THE MAQUILADORA FACTORIES THAT LINE THE HEAVILYPOLLUTED BORDER REGION THEY TOO HAVE FLOURISHED WITHOUT NAFTA'S HELP IF WE ARE SERIOUS ABOUT ADDRESSING THESE AND OTHER TRADEENVIRONMENT IMPACTS WE MUST WORK TO REFORM THE ECONOMIC FORCES BEHIND THEM AND WE MUST DO SO AT THE INTERNATIONAL LEVEL BUT WHILE TRADE AGREEMENTS ARE A LOGICAL POINT TO CONFRONT OUR ECONOMIC AND ENVIRONMENTAL CONTRADICTIONS THEY ARE NOT STRICTLY SPEAKING THE CAUSE OF THEM THIS SHOULD LEAD ENVIRONMENTALISTS TO ASK IF BLOCKING NAFTA WILL NOT STEM THE ENVIRONMENTAL IMPACTS OF TRADE CAN IT PROVIDE THE BASIS FOR BEGINNING TO RESOLVE THEM PERHAPS IT CAN FREE TRADE PROPONENTS OFTEN ASSERT THAT AN INCREASE IN FINANCIAL RESOURCES FLOWING TO MEXICO WILL RAISE ITS ENVIRONMENTAL PROTECTION STANDARD INDEED IT IS WIDELY RECOGNIZED THAT POVERTY LEADS TO DEGRADATION OF THE NATURAL ENVIRONMENT WHILE INCREASING FINANCIAL RESOURCES ALONE DOES NOT GUARANTEE A CLEANER ENVIRONMENT IT AT LEAST PROVIDES AN OPPORTUNITY TO PURSUE ONEGIVEN SUFFICIENT POLITICAL WILL FORTUNATELY IN MEXICO THE POLITICAL WILL IS STRONG THE ENVIRONMENTAL RECORD OF THE ADMINISTRATION OF PRESIDENT CARLOS SALINAS DE GORTARI HAS BEEN JUSTIFIABLY COMMENDED FOR ITS EFFORT TO HARMONIZE ENVIRONMENTAL STANDARDS AND TO ENFORCE THEM MORE EVENLY NO ADMINISTRATION IN RECENT HISTORY HAS TAKEN AT THE HIGHEST LEVELS BOLDER STEPS FOR THE CONSERVATION OF MEXICO'S RICH BIOLOGICAL DIVERSITY THE RECEPTIVENESS OF THE MEXICAN GOVERNMENT TO ENVIRONMENTAL CONCERNS IS AN OPPORTUNITY WE CANNOT AFFORD TO LOSE IF WE TRULY CARE ABOUT THE FUTURE OF ENVIRONMENTS OUTSIDE OUR OWN BORDERS HOW GOOD IS NAFTA ON THE ENVIRONMENT IT HAS BEEN CALLED THE GREENEST TRADE AGREEMENT EVER WHILE THIS MAY BE TRUE NAFTA IS SILENT ON MANY KEY ENVIRONMENTAL ISSUES SUCH AS THE ENVIRONMENTAL EFFECTS OF COMMODITY PRICE SHIFTS ON LAND USE AND THE LIKE THESE ARE QUESTIONS THAT NEED TO BE ADDRESSED BY ALL PARTIES CANADIANS MEXICANS AND US OFFICIALS IN AN OPEN FORUM A KEY COMPONENT OF NEGOTIATIONS ON A MUCHNEEDED ENVIRONMENTAL SIDE AGREEMENT FOR NAFTA IS THE CREATION OF A SPECIAL COMMISSION ON THE NORTH AMERICAN ENVIRONMENT AN IMPORTANT ROLE OF THE COMMISSION WOULD BE TO MONITOR THE EFFECTS OF FREE TRADE IN ORDER TO FIND COOPERATIVE SOLUTIONS TO ENVIRONMENTAL ISSUES ACROSS THE CONTINENT THAT IS NOT EVERYTHING BUT IT IS SOMETHING ESSENTIAL FOR THE LONG TERM IF NAFTA IS ACCOMPANIED BY A STRONG ENVIRONMENTAL SIDE AGREEMENT IT CAN PROVIDE THE BASIS FOR LONGTERM ENVIRONMENTAL IMPROVEMENTS THROUGHOUT NORTH AMERICA MS FULLER IS PRESIDENT OF WORLD WILDLIFE FUND 9307160082 930716 P&G WILL CUT 13000 JOBS SHUT 30 PLANTS GROWING PRICE COMPETITION FORCES MOVES CHARGE OF 15 BILLION SLATED BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO HOUNDED BY COMPETITION FROM LOWERPRICED AND PRIVATELABEL RIVALS WILL SLASH 13000 JOBS OR 12 OF ITS WORK FORCE AND CLOSE 30 PLANTS THE SWEEPING RETRENCHMENT THE LARGEST EVER FOR P&G IS THE LATEST SIGN THAT ONCEINVINCIBLE MAKERS OF CONSUMER BRANDS ARE UNDER PRESSURE MOREOVER THE MOVE SIGNALS P&G'S INTENT TO INCREASINGLY USE PRICE AS A WEAPON IN THE HIGHLY COMPETITIVE CONSUMERPRODUCTS AND FOOD MARKETS BY CUTTING COSTS THE COMPANY WILL BE ABLE TO CUT PRICES ON A VARIETY OF PRODUCTS THAT HAVE LOST MARKET SHARE TO COMPETITORS WE INTEND TO KEEP NARROWING THESE PRICE GAPS WITHOUT ADVERSELY AFFECTING OUR EARNINGS P&G CHAIRMAN EDWIN L ARTZT SAID AT AN ANALYSTS MEETING AT P&G HEADQUARTERS IN CINCINNATI THE COSTCUTTING MOVES WILL RESULT IN A 15 BILLION CHARGE FOR FISCAL 1993 ENDED JUNE 30 THE CHARGE COMBINED WITH A 925 MILLION RESERVE FOR ACCOUNTING CHANGES WILL REDUCE FISCAL 1993 RESULTS BY 25 BILLION OR 372 A SHARE IN FISCAL 1992 P&G EARNED 187 BILLION OR 262 A SHARE ON SALES OF 2936 BILLION THE COMPANY SAID IT EXPECTS TO POST A LOSS FOR FISCAL 1993 BUT WASN'T SPECIFIC P&G WHICH HAS SPENT THE PAST SIX MONTHS PLANNING THE DOWNSIZING SAID THE STEEP CUTS SHOULD GENERATE 500 MILLION IN AFTERTAX SAVINGS BY FISCAL 1996 IN ALL P&G IS FRANKLY ACKNOWLEDGING THAT ITS MARKET FOOTHOLD IS NO LONGER AS FIRM AS IT ONCE WAS IN RECENT MONTHS THE COMPANY WHICH ONCE COMMANDED SHELF SPACE IN SUPERMARKETS EVEN AS IT RETAINED PREMIUM PRICES HAS HAD TO CUT PRICES ON ITS CORE DISPOSABLE DIAPERS AND LAUNDRY DETERGENTS MR ARTZT CONCEDING THAT LOWERPRICED BRANDS ARE A GROWING THREAT TO P&G PRODUCTS SAID THE JUSTANNOUNCED PLANT CLOSINGS AND JOB CUTS WILL ALLOW THE COMPANY TO ACCELERATE PRICE CUTTING WE'RE GOING AFTER THAT LOWERPRICED BUSINESS TO THE EXTENT WE CAN AND STILL PROTECT OUR MARGINS BY BRINGING OUR STABLE OF BRANDS DOWN TO A MORE COMPETITIVE STANCE WE'RE GOING TO BE TOUGHER TO COMPETE WITH THE COMPANY ALSO PLANS TO LEAN MORE HEAVILY ON ADVERTISING TO PROMOTE ITS BRANDS WHICH INCLUDE CREST TOOTHPASTE TIDE LAUNDRY DETERGENT PAMPERS DISPOSABLE DIAPERS AND PERT PLUS SHAMPOO IN FISCAL 1993 AD SPENDING INCREASED 5 AS REPORTED IN RECENT WEEKS P&G HAS BEGUN TELLING SOME EMPLOYEES THAT THEIR JOBS WILL BE ELIMINATED WHILE JOB CUTS OF ABOUT 10000 WERE EXPECTED THE DECISION TO SHUT 30 PLANTS OR 20 OF ITS PLANTS WORLDWIDE CAME AS A SURPRISE THAT COUPLED WITH UNCERTAINTY ABOUT HOW THE CUTS WOULD AFFECT P&G'S BOTTOM LINE MAY HAVE CONTRIBUTED TO A DECLINE IN THE COMPANY'S STOCK PRICE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING P&G COMMON CLOSED YESTERDAY AT 51625 DOWN 875 CENTS BONITA AUSTIN AN ANALYST WITH SHEARSON LEHMAN BROTHERS SAID THE PLANT CLOSINGS SIGNAL THAT P&G ISN'T HAPPY WITH ITS PLANT CAPACITYUTILIZATION RATES THE COMPANY WILL DECIDE BY NOVEMBER WHICH PLANTS TO SHUTTER BUT SAID HALF WILL BE IN NORTH AMERICA AND HALF ELSEWHERE IN SOME CASES P&G'S PLANTS DUPLICATE ONE ANOTHER PARTLY BECAUSE OF A SPATE OF ACQUISITIONS IN THE PAST DECADE INCLUDING RICHARDSONVICKS AND SOME REVLON BUSINESSES OF 79 PLANTS P&G HAS ACQUIRED SINCE 1982 ONLY 24 HAVE BEEN CLOSED P&G SAID HALF THE JOB CUTS WILL COME FROM PLANT CLOSINGS OVER THE NEXT THREE TO FOUR YEARS THE OTHERS WILL COME FROM ORGANIZATIONAL RESTRUCTURING OVER THE NEXT TWO YEARS THE COMPANY HOPES TO AVOID LAYOFFS BY OFFERING VOLUNTARY SEPARATION AND EARLYRETIREMENT PACKAGES AS WELL AS BY A REDUCTION IN RECRUITING ANALYSTS SAID P&G'S COSTCUTTING MEASURES WILL MAKE BIG BRAND COMPETITORS SUCH AS ANGLODUTCH UNILEVER AND COLGATEPALMOLIVE CO FRET ABOUT THEIR PRICE LEVELS THIS ENABLES P&G TO CUT THEIR PRICES FURTHER TO COMPETE SAID GABRIEL LOWY AN ANALYST WITH OPPENHEIMER & CO PRICE WARS ALREADY ARE LOOMING YESTERDAY UNILEVER SAID IT WILL RESPOND ON A CASEBYCASE BASIS TO P&G'S ANNOUNCEMENT THIS WEEK THAT IT WILL CUT DETERGENT PRODUCT PRICES AS MUCH AS 15 UNILEVER DECLINED TO GIVE DETAILS BUT ANALYSTS SAID THEY EXPECT THE COMPANY TO CUT PRICES TO DEFEND ITS MARKET SHARE P&G CONTENDS THAT ALREADYIMPLEMENTED PRICE CUTS HAVE HURT RIVALS IN THE SIX MONTHS ENDED IN MAY PRIVATE LABELS AND LOWPRICE BRANDS HAD ONLY A 1 MARKET SHARE INCREASE IN CATEGORIES COMPETING WITH P&G THE COMPANY SAID THE GROWTH OF SUCH COMPETITORS HAS BEEN STABILIZED BY OUR PRICING ACTIONS MR ARTZT SAID BUT P&G MAY HAVE A DIFFICULT TIME BOOSTING MARKET SHARES IN THE TOUGH US MARKET PROSPECTS ARE BETTER IN THE INTERNATIONAL ARENA WHERE P&G PRODUCTS HAVE RELATIVELY SMALL MARKET SHARE THE OVERRIDING QUESTION IS WHAT'S GOING TO HAPPEN DOMESTICALLY WHERE GROWTH IS SLOW THE PIE ISN'T GETTING ANY BIGGER SAID JOE JORDAN ANALYST WITH PNC BANK CORP P&G ACKNOWLEDGED IT HAS TO FIX LOSERS BRANDS THAT ARE CLEARLY UNDERPERFORMING PARTICULARLY IN THE BAR SOAP HARDSURFACE CLEANERS FOOD AND DIAPER CATEGORIES DURK I JAGER P&G EXECUTIVE VICE PRESIDENT SAID THE COMPANY IS WELL ON ITS WAY TO REDUCING BRAND VARIETIES BY 25 AMONG BRANDS ALREADY CUT WHITE CLOUD TOILET TISSUE AND SOME VARIETIES OF LUVS DIAPERS 9307160081 930716 PEPPERAND SALT THEY HAVE AFTERDINNER MINTS TO ACCEPT THE BITTER WITH THE SWEET 9307160080 930716 REVIEW & OUTLOOK EDITORIAL ISLAMIC BOMBSHELL WISH THOUGH ONE MIGHT BOSNIA JUST ISN'T GOING AWAY WE NOW HAVE THE ISLAMIC CONFERENCE OFFERING TROOPS TO THE UNITED NATIONS PEACEKEEPING FORCES IN BOSNIA IT COULD NOT HAVE COME AT A WORSE TIME FOR THE WEST AS THE UN HAS HIT A BRICK WALL IN ITS REQUESTS FOR MORE TROOPS THE CONFERENCE HAS STEPPED IN TO PLAY SAVIOR OFFERING 18000 SOLDIERS FROM SIX ISLAMIC COUNTRIES AND THE PLO IT IS NOT ENTIRELY CLEAR WHETHER IRAN WHICH LED THE INITIATIVE AT AN ISLAMIC CONFERENCE MEETING IN ISLAMABAD IS SERIOUS ABOUT ITS OWN COMMITMENTS OR IS PLAYING GAMES WITH THE WEST IT OFFERED 10000 TROOPS BY FAR THE LARGEST BUT MAY HAVE DONE SO IN THE EXPECTATION THAT ITS PARTICIPATION WOULD BE VETOED BY THE US WHICHEVER WAY THE WEST RESPONDS IRAN MAY BE ABLE TO FURTHER ITS EFFORTS TO PROMOTE ISLAMIC FUNDAMENTALISM THROUGHOUT THE MUSLIM WORLD THE PALESTINE LIBERATION ORGANIZATION WHICH OFFERED 1000 FIGHTERS PROBABLY WAS ACTING ON SIMILAR MOTIVES THE UN HAS ASKED FOR 7500 TROOPS TO PROTECT THE BOSNIAN CAPITAL SARAJEVO AND OTHER SAFE HAVENS THAT THE UN HOPES TO SET UP PRIMARILY FOR BOSNIAN MUSLIMS REPORTS FROM NATO HEADQUARTERS IN BRUSSELS WEDNESDAY SAID THE US BRITAIN HOLLAND AND FRANCE HAVE BEGUN SENDING ABOUT 60 AIRCRAFT TO ITALY TO FLY AIR COVER FOR THE PROTECTIVE FORCE HOPING TO BEGIN OPERATIONS BY NEXT THURSDAY UNDER NORMAL CIRCUMSTANCES AN 18000MAN CONTRIBUTION TO PEACEKEEPING MIGHT BE WELCOMED BUT THE FEAR WILL BE THAT IRAN IS TRYING TO TURN BOSNIA INTO A BATTLEGROUND FOR A HOLY WAR BEFORE ALL THIS BOSNIA'S MUSLIMS WERE LARGELY SECULAR BUT THEY'VE LEARNED THAT THEY CAN'T DEPEND ON THE WEST TO END THEIR SUFFERING NOW IF MUSLIM EXTREMISTS CLAIM THEY'LL DO THE JOB MANY BOSNIANS MAY BE WILLING TO TURN IN THEIR DIRECTION THE ARMS EMBARGO THAT THE UN IMPOSED IN THE REGION AT THE SERBS' REQUEST IN SEPTEMBER 1991 HAS TAKEN A HARSH TOLL ON THE BOSNIAN SIDE BOSNIAN MUSLIMS DENIED HEAVY WEAPONRY THEMSELVES MIGHT WELCOME WELLARMED IRANIANS AGAIN THIS IS NOT YET A REALITY BUT THE POLITICAL DYNAMIC OF THE SITUATION HAS TO BE VIEWED AS TROUBLING IT COULD GIVE RADICAL MIDDLE EASTERN MUSLIMS AN ONTHEGROUND PRESENCE IN EUROPE FROM THERE THE WAR AND THE FUNDAMENTALISTS' INFLUENCE COULD SPREAD TO ALBANIA MACEDONIA AND KOSOVO ASSUMING THAT IRAN AND THE OTHER MUSLIM COUNTRIES COULD ACTUALLY TRANSPORT 18000 TROOPS TO BOSNIA AND DEPLOY THEM THERE SUCH A MOVE WOULD BE AN INVITATION FOR SERBIA TO FULLY MOBILIZE WHAT HAS BEEN A RELATIVELY SMALL WAR COULD SUDDENLY BECOME A BIG ONE MOST LIKELY THE WEST WILL TURN DOWN AT LEAST THE IRANIAN AND PLO TROOP OFFERS TURKEY WHICH IS OFFERING A BRIGADE MIGHT BE REJECTED AS WELL UNDER A UN RULE THAT DISQUALIFIES NEIGHBORING COUNTRIES FROM PEACEKEEPING BUT THAT IS THE ONE COUNTRY WHOSE PRESENCE IN THE AREA MAKES SENSE IN A RECENT ARTICLE ON THIS PAGE ALBERT WOHLSTETTER DETAILED THE WAYS BY WHICH THE WEST COULD PROVIDE THE BOSNIAN MUSLIMS WITH DISCRIMINATE MILITARY MEANS TO DEFEND THEMSELVES THE WAY OUT JULY 2 BUT THE WEST'S LEADERSHIP REMAINS INTELLECTUALLY AND POLITICALLY PARALYZED THE NEWS OUT OF IRAN SUGGESTS THAT OTHERS MAY NOT BE 9307160079 930716 INTERNATIONAL GHIDELLA QUITS SAURER HAHN IS CHAIRMAN SPECIAL TO THE WALL STREET JOURNAL ZURICH IN A SURPRISE ANNOUNCEMENT SWISS TEXTILEMACHINERY MANUFACTURER SAURER GROUP HOLDING AG SAID CARL H HAHN THE FORMER HEAD OF VOLKSWAGEN AG WILL SUCCEED VITTORIO GHIDELLA AS ITS BOARD CHAIRMAN MR GHIDELLA 62 YEARS OLD AN ITALIAN CITIZEN ASKED TO RESIGN DUE TO PERSONAL PRESSURE RELATED TO AN ITALIAN INVESTIGATION INTO ALLEGED ILLEGAL PRACTICES AT ONE OF SAURER'S UNITS SAURER HAS SAID THAT THE ITALIAN PROBE WAS MOTIVATED BY POLITICAL CONSIDERATIONS AND THAT THE TRANSACTIONS UNDER INVESTIGATION WERE PART OF LEGITIMATE BUSINESS PRACTICES THE COMPANY ALSO DEFENDED MR GHIDELLA'S PERSONAL INTEGRITY MR HAHN HAS BEEN A MEMBER OF THE SAURER BOARD SINCE 1992 HE WAS CHAIRMAN OF VOLKSWAGEN UNTIL HE RETIRED AT AGE 67 LAST YEAR 9307160078 930716 MOVIES LAST ACTION HERO' CRITICALLY WOUNDED TAKES SOME MARKETERS DOWN WITH HIM BY LAURA LANDRO AND THOMAS R KING STAFF REPORTERS OF THE WALL STREET JOURNAL IN COLUMBIA PICTURES' ACTION MOVIE SPOOF LAST ACTION HERO STAR ARNOLD SCHWARZENEGGER HAS A RUNNING JOKE THAT THE CHARACTER HE PLAYS JACK SLATER CAN'T DIE UNTIL THE GROSSES GO DOWN WELCOME TO THE FUNERAL THE MUCH ANTICIPATED MOVIE WHICH COST 80 MILLION TO PRODUCE AND AT LEAST 25 MILLION MORE TO MARKET IS BEING CALLED ONE OF THE COSTLIEST FLOPS IN HOLLYWOOD HISTORY AND A PUBLIC RELATIONS AND MARKETING DISASTER TO BOOT WHAT'S MORE IT HAS DISAPPOINTED THE MANY PROMOTIONAL PARTNERS AND LICENSEES THAT SIGNED ON TO HELP PITCH THE FILM AND SELL RELATED MERCHANDISE COLUMBIA AND ITS PARENT SONY CORP DISMISS ESTIMATES BY OTHER HOLLYWOOD STUDIOS THAT THE FILM COULD LOSE 40 MILLION THEY PROJECT HERO WILL WIND UP WITH 55 MILLION TO 60 MILLION IN US TICKET SALES OF WHICH THE STUDIO WOULD GET ROUGHLY HALF COLUMBIA NEGOTIATED AN ADVANCE SALE OF THE MOVIE TO TELEVISION REPORTEDLY FOR 7 MILLION TO 10 MILLION AND EXPECTS SOME RETURN FROM HOMEVIDEO SALES AND EXECUTIVES PROJECT THE MOVIE WILL TAKE IN ROUGHLY 100 MILLION OVERSEAS THOUGH THAT THEORY WON'T BE TESTED UNTIL THE MOVIE OPENS IN EUROPE AND JAPAN LATER THIS SUMMER MARK CANTON THE COLUMBIA UNIT'S CHAIRMAN CONCEDES WE'RE DISAPPOINTED BUT HE SAYS FROM A FINANCIAL STANDPOINT AT THE END OF THE DAY WE ARE PROJECTING WE WILL COME OUT OK ADDS HIS BOSS SONY PICTURES ENTERTAINMENT CHAIRMAN PETER GUBER THIS FILM WILL SURPRISE PEOPLE IN TERMS OF TOTAL REVENUE STILL EVEN IF SONY BREAKS EVEN OR MAKES A SCANT PROFIT FROM HERO THERE IS VIRTUALLY NO CHANCE IT CAN CREATE A LAST ACTION HERO FRANCHISE HOPES FOR USING THE FILM TO DEVELOP SYNERGIES WITH THE COMPANY'S ELECTRONICS BUSINESS ARE DASHED AND A SEQUEL IS OUT OF THE QUESTION A HEAVYMETAL SOUNDTRACK ALBUM RELEASED BY SONY'S MUSIC DIVISION IS SELLING RESPECTABLY BUT IT'S A ONESHOT PRODUCT RETAILERS SAY THAT LAST ACTION HERO MERCHANDISE PARTICULARLY THE ACTIONFIGURE TOY LINE FROM MATTEL INC HASN'T BEEN SELLING WELL IN MOST CASES THE TOYS HAVE BEEN CLOBBERED BY JURASSIC PARK DINOSAUR MERCHANDISE IN MANY STORES THE DINOSAURS ARE FEATURED IN ELABORATE DISPLAYS AT THE FRONT WHILE HERO ACTION FIGURES ARE RELEGATED TO A BACK AISLE IT'S OVER THEY DIDN'T DO WELL AT ALL SAYS TOM KULLY AN ANALYST AT WM BLAIR & CO IN CHICAGO I THOUGHT AT ONE POINT MATTEL WOULD SELL 15 MILLION TO 30 MILLION AT WHOLESALE NOW IT LOOKS LIKE THEY'LL DO MORE LIKE 10 MILLION TO 15 MILLION MR KULLY SAYS THE MOVIE'S CONCEPT WAS TOO COMPLEX FOR CHILDREN AND RESULTED IN TOYS THAT WERE HARD FOR KIDS TO UNDERSTAND MATTEL WON'T DISCLOSE SALES BUT A SPOKESWOMAN SAYS SALES TO DATE ARE TRACKING TO OUR TARGET AND WE'RE SATISFIED WITH THEM AND OUR ADVERTISING HAS JUST STARTED RUNNING IT'S STILL EARLY FASTFOOD CHAIN BURGER KING SIGNED A BIG PROMOTIONAL TIEIN WITH HERO AND WHILE THE COMPANY ADMITS IT HAS DONE BETTER WITH OTHER MOVIE TIEINS A SPOKESWOMAN INSISTS THAT TOP EXECUTIVES AREN'T KICKING THEMSELVES THAT THEY LINKED UP WITH THE WRONG MOVIE INDUSTRY EXECUTIVES SAY RIVAL MCDONALD'S CORP GOT A HUGE TRAFFIC PUSH FROM ITS PROMOTION WITH UNIVERSAL STUDIOS' JURASSIC PARK WE'RE VERY PLEASED THE BURGER KING SPOKESWOMAN SAYS IT DOESN'T MATTER IF THE MOVIE IS A BLOCKBUSTER SCHWARZENEGGER IS A HOUSEHOLD NAME A BIG STAR BURGER KING'S INVESTMENT IT AGREED TO BUY ABOUT 20 MILLION OF MEDIA TIME ON TV WAS BUFFERED A BIT BECAUSE IT BEGAN AIRING COMMERCIALS TWO WEEKS BEFORE THE MOVIE OPENED THAT ALLOWED IT TO GENERATE STORE TRAFFIC AND SELL SOME SPECIAL CUPS BEFORE WORD SPREAD THAT THE FILM WAS A DOG TYPICALLY FASTFOOD COMPANIES BEGIN ADVERTISING JUST AS A MOVIE OPENS I DON'T THINK THIS IS GOING TO BE A TOTAL DISASTER SAYS IRA MAYER PUBLISHER OF THE ENTERTAINMENT MARKETING LETTER THE MOVIE'S GOING DOWN FAST BUT THERE'S A POTENTIAL FOR A SECOND LIFE FOR MANY OF THESE PRODUCTS MR MAYER IS BETTING THERE WILL BE ANOTHER WAVE OF PRODUCT SALES WHEN THE MOVIE IS RELEASED ON HOME VIDEO INDUSTRY EXECUTIVES ANTICIPATE THE VIDEO WILL BE RELEASED AT THE END OF THE YEAR ALTHOUGH SONY HAD CONSIDERED PRICING THE VIDEO INEXPENSIVELY FOR SALE DIRECT TO CONSUMERS IT NOW PLANS TO RELEASE THE MOVIE AS A RENTAL TITLE WHICH GENERALLY INDICATES LOWERED EXPECTATIONS SONY'S MR GUBER SAYS HE HAS NO REGRETS ABOUT GOING AHEAD WITH LAST ACTION HERO HE SAYS IT HAD ALL THE ELEMENTS THAT MAKE A MOVIE WORTH TAKING A RISK BIG STAR HOT SCREENWRITER NAME DIRECTOR GOOD CONCEPT BUT THE MOVIE ABOUT A SMALL BOY WHO USES A MAGIC TICKET TO STEP INTO AN ACTION MOVIE AND BRING ITS STAR BACK TO THE REAL WORLD WENT THROUGH NUMEROUS REWRITES HAD A TIGHT PRODUCTION SCHEDULE AND WAS TAINTED BY BAD WORD OF MOUTH THOUGH SOME CRITICS LIKED THE FILM THOSE WHO PANNED IT CALLED IT MUDDLED AND CONFUSING EVEN THOSE WHO LIKED THE MOVIE NOTED THAT MOST OF ITS SATIRE WOULD BE LOST ON TYPICAL SCHWARZENEGGER ACTION FANS AND MOVIEGOERS WHO AREN'T ACTION FANS APPARENTLY WEREN'T INTERESTED ENOUGH TO SEE A SPOOF OF THE GENRE VIRTUALLY EVERYTHING ABOUT THIS MOVIE WAS ILLADVISED FROM THE START SAYS A TOP HOLLYWOOD AGENT INVOLVED IN THE FILM MR GUBER DISAGREES WHEN YOU'RE TRYING TO HIT HOME RUNS HE SAYS YOU HAVE TO BE WILLING TO GO TO BAT AND YOU HAVE TO BE PREPARED THAT SOME MOVIES WON'T WORK AS WELL AS OTHERS SONY CORP OF AMERICA'S CHAIRMAN MICHAEL SCHULHOF TO WHOM MR GUBER REPORTS SAYS THE PERFORMANCE OF ANY INDIVIDUAL FILM ISN'T A RELEVANT PARAMETER TO JUDGE MANAGEMENT BY HE DISMISSES SPECULATION THAT HEADS WILL ROLL AND OPERATING BUDGETS ARE ALREADY BEING SHARPLY CURTAILED I'M PROUD OF PETER GUBER AND MARK CANTON HE SAYS IN FACT SO FAR THIS YEAR THE COLUMBIA TRISTAR PICTURES SONY CLASSICS AND TRIUMPH RELEASING DIVISIONS ACCOUNT FOR A LEADING 193 SHARE OF THE INDUSTRY'S BOX OFFICE IN THE LINE OF FIRE HAD THE LARGEST OPENING EVER FOR A CLINT EASTWOOD MOVIE AND SOLD 192 MILLION OF TICKETS IN ITS FIRST FIVE DAYS TRISTAR'S SLEEPLESS IN SEATTLE IS A BIG HIT AND TRISTAR RELEASED CAROLCO PICTURES' CLIFFHANGER CURRENTLY CLOSE TO 75 MILLION IN TICKET SALES STILL COLUMBIA'S PUBLIC RELATIONS ALSO TOOK A BEATING FROM LAST ACTION HERO THE COMPANY OPENLY FEUDED WITH SOME IN THE PRESS AFTER NEGATIVE REPORTS PRIOR TO THE FILM'S OPENING THEN A SPOKESMAN PREDICTED THE MOVIE WOULD GROSS 20 MILLION ITS FIRST WEEKEND WHEN IT OPENED TO FAR LESS EXECUTIVES TOLD REPORTERS THE SPOKESMAN WAS OUT OF LINE IN APRIL SID GANIS PRESIDENT OF MARKETING AND DISTRIBUTION AT THE STUDIO SAID THAT GUNS WOULDN'T BE A MAJOR PART OF THE FILM'S ADVERTISING EFFORT BUT SHORTLY AFTER THE MOVIE OPENED COLUMBIA WHEELED OUT BIG NEWSPAPER ADS FEATURING A SHOT OF MR SCHWARZENEGGER BRANDISHING A GUN WE JUST WANTED TO MAKE SURE THAT ARNOLD'S FANS KNEW WHAT LAST ACTION HERO' HAD TO OFFER MR GANIS SAYS 9307160077 930716 MYCOGEN CIBAGEIGY TO DEVELOP CORN SEED THAT WILL RESIST PESTS SAN DIEGO MYCOGEN CORP AND CIBAGEIGY CORP'S CIBA SEEDS DIVISION SAID THEY ENTERED INTO A JOINT LICENSE AND RESEARCH AGREEMENT TO DEVELOP GENETICALLY ENGINEERED CORN SEED THAT RESISTS INSECT PESTS THE PARTNERSHIP WILL FOCUS INITIALLY ON DEVELOPMENT OF SEED THAT RESISTS THE EUROPEAN CORN BORER A MAJOR PEST IN NORTH AMERICA AND EUROPE FINANCIAL TERMS OF THE PACT WEREN'T DISCLOSED MYCOGEN GRANTED CIBA RIGHTS TO MYCOGEN'S PATENTS TO PRODUCE AND SELL HYBRID CORN SEED CONTAINING BACILLUS THURINGIENSIS OR BT GENES CIBA RECENTLY BECAME THE FIRST COMPANY TO RECEIVE US GOVERNMENT APPROVAL FOR LARGESCALE FIELD TRIALS FOR TRANSGENIC CORN MYCOGEN SAID THE PARTNERS SAID THEY EXPECT TO BRING TRANSGENIC CORN HYBRID SEED TO MARKET WITHIN FIVE YEARS THEY ALSO PLAN TO JOINTLY TEST ADDITIONAL BT GENES FOR ACTIVITY AGAINST CORN PESTS AND TO PURSUE DEVELOPMENT OF OTHER TRANSGENIC CORN HYBRIDS THEY WILL SHARE COMMERCIAL RIGHTS TO ANY RESULTING TECHNOLOGY THE ALLIANCE IS PARTLY AIMED AT CORNSEED MARKET LEADER PIONEER HIBRED INTERNATIONAL INC DES MOINES IOWA WITH AN ESTIMATED 39 OF THE US MARKET MYCOGEN AND CIBA SEED EACH HAVE ABOUT A 3 SHARE A MYCOGEN SPOKESMAN SAID US CORN GROWERS SPEND ABOUT 15 BILLION A YEAR ON PLANTING SEED AND ABOUT 200 MILLION ON INSECTICIDES CIBAGEIGY IS A SWISS CHEMICALS AND PHARMACEUTICALS CONCERN MYCOGEN IS AN AGRICULTURAL BIOTECHNOLOGY CONCERN 9307160076 930716 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY FIGURING OUT THE RIGHT AMOUNT OF COVERAGE FOR YOUR SURVIVORS BY KAREN SLATER DAMATO HOW MUCH LIFE INSURANCE IS ENOUGH THAT'S AN IMPORTANT QUESTION FOR ANYONE WHO HAS FAMILY MEMBERS RELYING ON HIS OR HER INCOME BUT BE FOREWARNED THAT THERE'S NO SINGLE RIGHT ANSWER INDEED THREE YEARS AGO WHEN THIS NEWSPAPER ASKED 10 FINANCIAL ADVISERS AND AGENTS TO MAKE RECOMMENDATIONS FOR A HYPOTHETICAL 45YEAROLD MAN WITH A WIFE AND TWO CHILDREN THE SUGGESTIONS RANGED FROM AS LITTLE AS 250000 OF COVERAGE TO 12 MILLION WHAT'S AN INSURANCE BUYER TO DO TAKE A FEW STABS AT FIGURING YOUR NEEDS SCRUTINIZE AND VARY THE ASSUMPTIONS USED THEN GO AHEAD AND BUY COVERAGE WITHOUT FURTHER DELAY ANY THOUGHTFUL DECISION ON HOW MUCH INSURANCE TO BUY IS PROBABLY BETTER THAN NO DECISION AT ALL AFTER ALL THE OBJECTIVE IS TO PROVIDE MONEY YOUR DEPENDENTS COULD TAP IMMEDIATELY AND OVER THE YEARS IF YOU SHOULD DIE TOMORROW THE SIMPLEST APPROACH IS TO USE AN OLD RULE OF THUMB THAT LIFE INSURANCE SHOULD EQUAL FIVE TO SEVEN TIMES SOME SAY 10 TIMES A PERSON'S ANNUAL SALARY NEW YORK FINANCIAL PLANNER LEWIS J ALTFEST HAS HIS OWN VARIATION OF THAT BASIC GUIDE MAINTAIN COVERAGE EQUAL TO FOUR TIMES PAY PLUS ANOTHER TWO TIMES PAY FOR EACH CHILD TO BE RAISED AND EDUCATED MINUS YOUR INVESTMENT AND PENSION ASSETS BUT SUCH MULTIPLES PROVIDE ONLY BALLPARK FIGURES WHICH MAY BE INAPPROPRIATE FOR A PARTICULAR FAMILY'S NEEDS AND GOALS MANY ADVISERS AND INSURANCE SELLERS USE DETAILED WORKSHEETS OR COMPUTER PROGRAMS TO HELP PEOPLE CALCULATE THEIR INSURANCE NEEDS YOU CAN DO AN ABBREVIATED VERSION OF SUCH AN ANALYSIS USING THE ACCOMPANYING WORKSHEET KEEP IN MIND THOUGH THAT WORKSHEETS AND COMPUTER MODELS ALL DEPEND ON NUMEROUS ASSUMPTIONS AND THAT CHANGING A SINGLE VARIABLE CAN CHANGE THE BOTTOM LINE SIGNIFICANTLY COUPLES SHOULD TAKE THE TIME TO THINK AND TALK ABOUT HOW A SURVIVOR MIGHT LIVE URGES ELLIOT S LIPSON AN ATLANTA FINANCIAL PLANNER FOR INSTANCE WOULD YOU SELL THE HOUSE AND MOVE TO A SMALLER HOUSE IS ONE KEY QUESTION HE NOTES AND IF A SPOUSE ISN'T EMPLOYED NOW WOULD YOU GO BACK TO WORK APPLEGARTH A 96PAGE GUIDE TO SEVERAL TYPES OF COVERAGE FROM A SERIES OF BOOKS DISTRIBUTED TO CLIENTS BY PROSPECTS BY JOHN HACOCK MUTUAL LIFE INSURANCE CO 8004353538 EXT 201 LIFE INSURANCE ANSWERS TO QUESTIONS YOU SHOULD ASK BY DAVID J BOHL AND OTHERS AT ARTHUR ANDERSEN & CO A 56PAGE GUIDE PREPARED FOR MASSACHUSETTS MUTUAL LIFE INSURANCE CO 8008722050 SEE RELATED STORIES A SOUND FINANCIAL PLAN BEGINS WITH INSURANCE AND MAKING THE RIGHT INSURANCE MOVES THROUGH THE AGES WSJ JULY 16 1993 9307160075 930716 LOCKHEED PROPOSES SELLING 42 MODIFIED JETS TO NAVY CALABASAS CALIF LOCKHEED CORP HAS PROPOSED THAT THE NAVY BUY 42 MODIFIED F117 STEALTH FIGHTERS FOR USE UNTIL A NEXTGENERATION AIRCRAFT IS DEVELOPED FOR THE SERVICE THE COMPANY BUILT LIMITED NUMBERS OF THE JETS FOR THE AIR FORCE DESPITE A SHARP REDUCTION IN US DEFENSE SPENDING THE COMPANY HAS SUGGESTED THAT THE NAVY BUY THE JETS FOR A TOTAL 66 BILLION SAID SHERMAN MULLIN PRESIDENT OF THE COMPANY'S ADVANCED DEVELOPMENT CO SUBSIDIARY IN PALMDALE CALIF THE UNIT IS KNOWN AS THE SKUNK WORKS THE PRICE INCLUDES 81 MILLION FOR EACH AIRCRAFT PLUS ADDITIONAL FUNDS FOR AN ENGINEERING AND MANUFACTURINGDEVELOPMENT PROGRAM MR MULLIN SAID AN UPGRADED VERSION OF THE AIRCRAFT WITH ENHANCED RADAR AND OTHER FEATURES WOULD COST A TOTAL 76 BILLION FOR A FLEET OF THE SAME SIZE THE COMPANY REMAINS INVOLVED IN TWO SEPARATE BIDS FOR WORK ON THE NAVY'S PLANNED AFX FIGHTER HOWEVER THAT JET PROGRAM COULD BE CUT FROM SHRINKING FEDERAL BUDGETS FOLLOWING A BOTTOMUP REVIEW OF EQUIPMENT NEEDS THAT IS NOW UNDER WAY IN THE DEFENSE DEPARTMENT IF THE NAVY DECIDES THEY NEED SOME STEALTHATTACK AIRPLANES UNDER THE BEST OF CONDITIONS THEY WOULDN'T GET AN AIRPLANE UNTIL AT LEAST 2010 SAID MR MULLIN ADDING THAT AN F117 FLEET WOULD SIMPLY FILL THE STEALTH GAP IN NAVAL AIR POWER UNTIL THEN 9307160074 930716 MANUFACTURERS SHOW DECLINE IN OPTIMISM ON BUSINESS OUTLOOK NEW YORK FOR THE SECOND STRAIGHT MONTH MANUFACTURERS AND CONSTRUCTION EXECUTIVES EXPRESSED LESS OPTIMISM ABOUT BUSINESS CONDITIONS ACCORDING TO DUN & BRADSTREET CORP'S LATEST SURVEY UNCERTAINTY BREEDS ANXIETY ESPECIALLY FOR SMALL BUSINESS SAID DOUGLAS P HANDLER D&B'S MANAGER OF ECONOMETRIC ANALYSIS BOTH INDUSTRY GROUPS HAVE CONCERNS ABOUT THE GOVERNMENT'S HEALTHCARE AND FISCAL POLICIES HE SAID THE SURVEY OF 1000 MANUFACTURERS SHOWED THE INDUSTRIAL SENTIMENT INDEX COVERING EXPECTED INCREASES IN PRODUCTION NEW ORDERS UNFILLED ORDERS INVENTORY LEVELS AND EXPORTS DOWN ONE POINT IN JUNE TO 18 FOLLOWING A FIVEPOINT DECLINE IN MAY THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDENTS WHO EXPECT INCREASES IN THE NEXT THREE MONTHS IN THE FIVE AREAS MINUS THOSE WHO EXPECT DECREASES THE OUTLOOK FOR FOUR OF THE INDEX'S COMPONENTS DIMMED BUT EXPECTATIONS FOR INCREASED EXPORTS ROSE ALSO EXPECTATIONS FOR HIGHER PRICES FELL EASING CONCERNS ABOUT HIGHER INFLATION AT THE PRODUCER LEVEL MANUFACTURERS' OPTIMISM HAS SLUMPED MR HANDLER SAID HOWEVER HE ADDED THAT DEPITE DECLINES IN OPTIMISM THE INDEX REMAINS AT MODERATE LEVELS UNDERSCORING THE OUTLOOK FOR SLOW STEADY GROWTH THROUGH THE SUMMER THE 200 CONSTRUCTION COMPANIES IN D&B'S JUNE SURVEY INDICATED LOWER EXPECTATIONS FOR INCREASES IN NEW ORDERS EMPLOYMENT AND PRICES THE INDEXES FOR PRICES AND NEW ORDERS EACH FELL 11 POINTS TO 12 AND 40 RESPECTIVELY STILL THOSE INDEXES WERE ABOVE JUNE 1992 LEVELS THE EMPLOYMENT INDEX DROPPED 10 POINTS TO 21 FOUR POINTS BELOW THE YEAREARLIER POSITION 9307160073 930716 NEW PRESCRIPTION STUNNING DEPARTURE OF MERCK HEAD SIGNALS TURMOIL INSIDE AND OUT DESPITE DRUG INDUSTRY WOES TOP INSIDERS QUESTIONED PUSH FOR RAPID CHANGES RACE IS ON FOR HEIR APPARENT BY WALL STREET JOURNAL STAFF REPORTERS ELYSE TANOUYE MICHAEL WALDHOLZ AND GEORGE ANDERS LAST DECEMBER MERCK & CO SURPRISED COMPANY INSIDERS AND INVESTORS WHEN IT NAMED 42YEAROLD RICHARD J MARKHAM PRESIDENT PUTTING HIM IN PLACE TO SUCCEED THE LEGENDARY P ROY VAGELOS AS HEAD OF THE WORLD'S LARGEST AND MOST SUCCESSFUL PHARMACEUTICAL MAKER LAST WEEK MERCK STUNNED INDUSTRY WATCHERS AGAIN WHEN MR MARKHAM A BRILLIANT MARKETER WHO HAD BECOME THE COMPANY'S PRESIDENT SUDDENLY RESIGNED WITHOUT EXPLANATION LEAVING BEHIND HIS 20YEAR CAREER AND A CLEAR SHOT AT ONE OF THE BEST JOBS IN CORPORATE AMERICA WHAT HAPPENED IN BETWEEN MR MARKHAM'S EXIT REFLECTS EXTRAORDINARY AND SURPRISING TURMOIL AT MERCK LONG LAUDED AS ONE OF THE BEST MANAGED COMPANIES IN THE WORLD IT ALSO COMES AT A TIME WHEN THE COMPANY CAN LEAST AFFORD IT AS THE PHARMACEUTICAL INDUSTRY FACES THE GREATEST CHALLENGES IN DECADES AS A RESULT OF PRESSURE TO HOLD DOWN DRUG PRICES FROM LARGE BUYING GROUPS AND FROM FEDERAL AND LOCAL GOVERNMENT HEALTH INSURERS IN THE PAST YEAR DRUG MAKERS' PROFIT GROWTH HAS FALLEN SHARPLY STOCK PRICES HAVE STALLED AND SOME COMPANIES' ABILITY TO FUND EXPENSIVE RESEARCH IS IN JEOPARDY SOME ANALYSTS SAY DEBATES WITHIN DRUG COMPANIES ABOUT HOW BEST TO MEET THIS INDUSTRY CRISIS HAVE ALSO CAUSED THE RECENT UNEXPECTED DEPARTURE OF TWO OTHER TOP PHARMACEUTICAL EXECUTIVES IN MARCH ERNEST MARIO WAS DISMISSED FROM HIS POSITION AS CHIEF EXECUTIVE AT THE HUGE BRITISH DRUG MAKER GLAXO HOLDINGS PLC CITING PHILOSOPHICAL DIFFERENCES WITH THE CHAIRMAN LAST MONTH ELI LILLY & CO FIRED ITS CHIEF EXECUTIVE VAUGHN D BRYSON APPARENTLY OVER DIFFERENCES IN MANAGEMENT STYLE AND DIRECTION FOR THE RECORD MERCK SAYS ONLY THAT MR MARKHAM LEFT FOR PERSONAL REASONS THE COMPANY REFUSES TO ELABORATE BEYOND SAYING THAT HIS DEPARTURE WASN'T DUE TO POOR HEALTH OR BUSINESS ISSUES LEAVING THE REAL CAUSE SHROUDED IN MYSTERY CONVERSATIONS WITH MR MARKHAM'S COLLEAGUES FRIENDS AND MERCK INSIDERS HOWEVER SUGGEST THAT THE EXECUTIVE DIDN'T LEAVE VOLUNTARILY AND THREE EXPLANATIONS FOR HIS SUDDEN FALL HAVE EMERGED FIRST MR MARKHAM'S PUSH FOR RAPID CHANGE APPEARS TO HAVE ALIENATED SOME POWERFUL OLDER MERCK EXECUTIVES WHO MAY ALSO HAVE RESENTED HIS RAPID RISE SECOND MANY SPECULATE THAT MR MARKHAM LOST THE CONFIDENCE OF HIS MENTOR DR VAGELOS BY PUSHING TOO AGGRESSIVELY FOR MERCK TO MAKE A 5 BILLION ACQUISITION AND FINALLY MR MARKHAM'S FLAMBOYANT PERSONAL STYLE INCLUDING IN THE PAST FEW YEARS A HIGHLY VISIBLE DIVORCE AND A REMARRIAGE TO A MERCK EMPLOYEE WAS SEEN BY MANY AS BEING AT ODDS WITH THE COMPANY'S STRAIGHTLACED CULTURE ASKED IF MERCK WAS SATISFIED IN ALL RESPECTS WITH MR MARKHAM'S PERSONAL CONDUCT DR VAGELOS REPLIED IN WRITING YESTERDAY WE DO NOT THINK IT IS APPROPRIATE TO COMMENT ON A FORMER EXECUTIVE'S PERSONAL STYLE OR CONDUCT MR MARKHAM'S RESIGNATION CAME THREE MONTHS AFTER HE PULLED OFF A MARKETING COUP THAT HELPED EXPLAIN WHY HE WAS ORIGINALLY TAPPED TO SUCCEED DR VAGELOS MR MARKHAM WHO ROSE RAPIDLY THROUGH THE COMPANY HAD TRAVELED FROM MERCK'S WHITEHOUSE STATION NJ HEADQUARTERS TO SEATTLE TO MAKE A HIGHLY UNUSUAL PERSONAL PITCH TO A LARGE HEALTH MAINTENANCE ORGANIZATION THREATENING TO BOYCOTT MERCK'S HIGHPRICED MEDICINES IN A DEFT COMBINATION OF PERSISTENCE AND WILE MR MARKHAM CONVINCED GROUP HEALTH COOPERATIVE OF PUGET SOUND TO ALLOW THE HMO'S DOCTORS TO CONTINUE PRESCRIBING MERCK'S PRODUCTS A WEEK LATER HE REPEATED A SIMILAR FEAT WITH ANOTHER BUYER BACK EAST DICK MARKHAM WAS A BREATH OF FRESH AIR FROM MERCK A VERY GOOD BUT STODGY COMPANY THAT HADN'T CHANGED WITH THE TIMES SAYS PHILLIP M NUDELMAN GROUP HEALTH'S PRESIDENT AND CHIEF EXECUTIVE DR NUDELMAN SAYS HE WAS GOING TO SPURN MERCK'S PRODUCTS BECAUSE THE COMPANY WAS UNWILLING TO DISCUSS DISCOUNTING BUT MR MARKHAM CHANGED THE HMO'S MIND HE HAD A REFRESHING AND VITALIZING WAY OF LOOKING AT THE BUSINESS MR NUDELMAN SAYS CALLING MR MARKHAM A HECK OF A SALESMAN THAT KIND OF ATTITUDE AND ABILITY HAD LED MERCK IN DECEMBER TO NAME MR MARKHAM HEIR APPARENT TO DR VAGELOS WHO PLANS TO RETIRE IN NOVEMBER 1994 AFTER HE TURNS 65 THE CHOICE WAS ESPECIALLY UNEXPECTED BECAUSE IT MEANT MR MARKHAM LEAPFROGGED OVER FOUR OTHER HIGHLY VISIBLE EXECUTIVES MORE SENIOR IN AGE AND EXPERIENCE DR VAGELOS A RENOWNED SCIENTIST WHO HAS LED MERCK THROUGH A PERIOD OF UNPRECEDENTED GROWTH SINCE BECOMING CHIEF EXECUTIVE IN 1986 EXPLAINED HIS CHOICE IN AN INTERVIEW IN DECEMBER HE HAILED MR MARKHAM AS HAVING ALL THE ATTRIBUTES OF A GREAT LEADER HE'S SMART SENSITIVE PERCEIVES PROBLEMS AND HE KNOWS WHERE THE INDUSTRY IS GOING SOMETHING THAT IS NOT TRUE OF MANY PEOPLE MANY IN THE COMPANY NOW SAY THAT DR VAGELOS'S EFFUSIVE COMMENTS UPSET THE OTHER FOUR EXECUTIVES AND THEIR ALLIES AND SUPPORTERS IN PARTICULAR DR VAGELOS SAID MR MARKHAM'S TASK WAS TO SHAKE UP MERCK'S TRADITIONAL APPROACH TO SELLING PRESCRIPTION MEDICINES DIRECTLY TO DOCTORS INSTEAD DR VAGELOS WANTED HIM TO MAKE DEALS WITH THE FASTGROWING COMMUNITY OF HMOS THAT WAS DEMANDING DEEP DISCOUNTS FROM DRUG MAKERS SOMETHING MERCK STEADFASTLY HAD RESISTED PEOPLE LOVE TO WORK FOR HIM DR VAGELOS SAID OF MR MARKHAM HE IS EXCITING STIMULATING HE WILL BE AN AGENT OF CHANGE AS AN EXPERIMENTAL SCIENTIST I LOOK FOR AGENTS OF CHANGE BUT MANY COMPANY INSIDERS SPECULATE THAT MR MARKHAM'S REVOLUTION WAS TAKING PLACE FASTER THAN DR VAGELOS WANTED OR FASTER THAN THE CADRE OF OTHER TOP EXECUTIVES BELIEVED WAS NECESSARY OR PROPER DR VAGELOS SAYS THAT THERE HAS INDEED BEEN SPIRITED DEBATE WITHIN MERCK ABOUT THE RIGHT WAY TO DEAL WITH INCREASINGLY POWERFUL MANAGEDCARE GROUPS BUT HE DENIES THERE WAS A RIFT BETWEEN HIM AND MR MARKHAM EVEN SO MR MARKHAM AND HIS YOUNGISH BRASH COLLEAGUES FROM THE MARKETING SIDE OF MERCK WERE SEEKING TO MAKE ACQUISITIONS JETTISON OTHER PARTS OF THE COMPANY AND SLASH THE WORK FORCE THIS SPRING THE COMPANY ENCOURAGED ABOUT 900 EXECUTIVES AND OTHER SENIOR EMPLOYEES TO LEAVE MERCK AS PART OF ITS FIRST EARLYRETIREMENT OFFER IN YEARS YOU HAVE TO UNDERSTAND THAT AT MERCK WE'VE HAD A CHERISHED TRADITION OF GROWING THROUGH THE SINGLEMINDED DEDICATION TO DEVELOPING OR LICENSING IN FIRSTTIER PREMIER AND INNOVATIVE MEDICINES SAYS ONE COMPANY RESEARCHER WHO LIKE MANY OF HIS COLLEAGUES SPOKE ONLY ON THE PROMISE OF ANONYMITY MARKHAM WAS PART OF A GROUP OF SENIOR YOUNG TURKS WHO SEEMED TO WANT TO DO THINGS DIFFERENTLY IT WAS UNSETTLING HERE IN RECENT MONTHS UNDER MR MARKHAM'S CONTROL OF DAYTODAY OPERATIONS MERCK UNDERTOOK SEVERAL OTHER ACTIONS THAT SURPRISED LONGTIME EMPLOYEES FOR ONE THE COMPANY ANNOUNCED THE CREATION OF A SEPARATE BUSINESS UNIT TO SELL GENERIC DRUGS A MOVE MANY MERCK TRADITIONALISTS THOUGHT CHEAPENED THE COMPANY'S IMAGE ALSO IN AN APPARENT EFFORT TO BOOST SLUGGISH PRESCRIPTION DRUG SALES IT TEMPORARILY REDUCED THE PRICES OF ITS ANTICHOLESTEROL DRUGS MEVACOR AND ZOCOR THE FIRST TIME MANY AT MERCK CAN RECALL A WILLINGNESS TO PUBLICLY ADVERTISE THE DISCOUNTING OF PRODUCTS THESE ACTIONS ADDED TENSION TO A WORK FORCE ALREADY UNDER EXTRAORDINARY PRESSURE ACCORDING TO ONE MIDLEVEL MERCK EXECUTIVE THE EXECUTIVE SAYS TOP MANAGERS NOW TALK CONSTANTLY ABOUT HOW TO DEAL WITH THE NEW REALITY OF THE COMPETITIVE HEALTHCARE ENVIRONMENT DR VAGELOS CONCEDES THAT MERCK'S ATTEMPT TO REDESIGN ITSELF HAS CREATED NEW CHALLENGES THROUGHOUT THE CORPORATION AND ADMITTEDLY ADDITIONAL STRESS FOR SOME OF OUR EMPLOYEES COMPANY INSIDERS SAY THEY BELIEVE THAT PRESSURES TO BE MORE EFFICIENT HAVE INTENSIFIED IN RECENT MONTHS THAT IS PARTLY BECAUSE THE INSIDERS BELIEVE WHILE MR MARKHAM WAS SEEN AS THE HEIR APPARENT HE WASN'T OFFICIALLY SO DESIGNATED FOUR OTHERS WHO REMAINED LEADING CANDIDATES ARE EDWARD SCOLNICK 52 WHO IS HEAD OF MERCK'S RESEARCH OPERATIONS JERRY T JACKSON 51 WHO RUNS THE COMPANY'S PHARMACEUTICAL BUSINESS FRANCIS SPIEGEL 57 WHO MANAGES THE COMPANY'S CONSUMER HEALTH BUSINESSES AND OTHER AREAS AND JOHN L ZABRISKIE 53 WHO OVERSEES MANUFACTURING OPERATIONS DR VAGELOS HAS CALLED THE FOUR PLUS MR MARKHAM HIS DREAM TEAM NOTING THAT ANY OF THEM COULD ABLY REPLACE HIM ONE FORMER COMPANY EXECUTIVE SAYS THE FIVEMAN RACE SET UP BY DR VAGELOS WAS OFTEN GRUELING AND LEFT MANAGERS INTENSELY PREOCCUPIED WITH AVOIDING MISTAKES THE LEADERSHIP AT MERCK INCLUDING DR VAGELOS IS KNOWN TO BE DEEPLY FRUSTRATED BY A YEARLONG SLIDE IN THE COMPANY'S SHARE PRICE ALTHOUGH DR VAGELOS SAYS HE REMAINS BULLISH ON MERCK THE STOCK CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING AT 33875 DOWN 87 1/2 CENTS ON THE DAY AND BARELY ABOVE ITS 12MONTH LOW SEVERAL MAJOR DRUG STOCKS INCLUDING MERCK WERE DOWNGRADED TO UNDERPERFORM YESTERDAY BY SMITH BARNEY HARRIS UPHAM & CO ANALYST CHRISTINA HEUER WHO CITED CONCERN ABOUT SLOWING GROWTH RATES REVENUE AND PROFIT INDUSTRYWIDE HAVE BEEN STUNTED BY DRUG MAKERS' SELFIMPOSED RESTRICTION ON PRICE INCREASES DESIGNED TO THWART THREATS OF PRICE REGULATION FROM THE CLINTON ADMINISTRATION DRUGCOMPANY REVENUE ALSO IS BEING HAMPERED BY A WAVE OF DISCOUNTING AS DRUG MAKERS HAVE BEEN HUSTLING FOR BUSINESS WITH MANAGEDCARE COMPANIES ANALYST MARIOLA B HAGGAR OF SALOMON BROTHERS PROJECTS MERCK'S EARNINGSPERSHARE GROWTH WILL DECLINE TO ABOUT 11 THIS YEAR COMPARED WITH 21 PROFIT GROWTH IN 1990 LIKE GROUP HEALTH IN SEATTLE MANY MANAGEDCARE PROGRAMS HAVE BEEN ABLE TO FORCE DRUG PRICES DOWN BY THREATENING TO STOP STOCKING NONDISCOUNTED MEDICINES IT USED TO BE THAT IT WAS IMPORTANT FOR PHARMACEUTICAL COMPANIES TO CALL ON INDIVIDUAL DOCTORS SAYS DR MONROE TROUT HEAD OF AMERICAN HEALTHCARE SYSTEMS A HOSPITAL BUYING GROUP IN SAN DIEGO HE NOTES THAT COMPANIES NOW NEED TO SHIFT SHARPLY SELLING DIRECTLY TO BIG BUYERS WHO FOR THE FIRST TIME CAN DICTATE PRICING TERMS TO THE BIG DRUG MAKERS MR MARKHAM'S LEAP INTO THE PRESIDENCY WAS LARGELY RECOGNITION FOR HIS STRATEGY TO CAPTURE MANAGEDCARE BUSINESS BY ALL ACCOUNTS MR MARKHAM ROSE TO PROMINENCE AT MERCK BECAUSE HE WAS PERCEIVED TO BE THE COMPANY'S SAVVIEST SALESMAN MR MARKHAM JOINED MERCK IN 1973 IMMEDIATELY AFTER GRADUATING FROM PURDUE UNIVERSITY YEARS LATER HE TOLD A TRADE MAGAZINE THAT MERCK WAS THE ONE COMPANY HE WANTED TO WORK FOR HE BEGAN BY CARRYING A BAG AS A SALES REPRESENTATIVE PITCHING THE BENEFITS OF MERCK'S MEDICINES TO INDIVIDUAL DOCTORS IN RECENT YEARS HE GAINED ATTENTION FOR OVERHAULING SALES OPERATIONS IN EUROPE AND FOR PROMOTING CREATIVE WAYS TO SELL MERCK'S HUGESELLING CHOLESTEROLLOWERING DRUG MEVACOR I HAVE WORKED FOR MR MARKHAM FOR FOUR YEARS AND HE'S PROBABLY THE MOST BRILLIANT GUY I'VE EVER SEEN IN THE COMPANY SAYS HENRI LIPMANOWICZ A SENIOR VICE PRESIDENT IN MARKETING SAYS MICHAEL ROSENBLATT A TOP COMPANY RESEARCHER WHO RECENTLY TOOK A POST AT HARVARD UNIVERSITY SCHOOL OF MEDICINE MARKHAM AND I WORKED TOGETHER ON MANY PROJECTS HE'S A QUICKSTUDY VERY GOALORIENTED AND HAS A LOT OF ENERGY MR MARKHAM'S PROMANAGEDCARE STANCE TOOK ITS MOST DARING FORM EARLIER THIS YEAR WHEN MERCK BEGAN ACQUISITION TALKS WITH THE LEADING MAILORDER PHARMACY COMPANY MEDCO CONTAINMENT SERVICES INC MEDCO'S CHAIRMAN MARTIN WYGOD HAS SAID FOR MONTHS THAT HE IS INTERESTED IN CLOSER TIES WITH A FEW BIG DRUG COMPANIES BUT MOST INDUSTRY WATCHERS HAD EXPECTED THOSE TALKS TO INVOLVE STRATEGIC ALLIANCES RATHER THAN AN OUTRIGHT SALE OF MEDCO TO A DRUG COMPANY AT CURRENT STOCK MARKET PRICES BUYING MEDCO WOULD COST AT LEAST 5 BILLION NEITHER MEDCO NOR MERCK WILL COMMENT ON MR MARKHAM'S EXACT ROLE IN THOSE TALKS BUT DRUG INDUSTRY SOURCES SAY THEY BELIEVE THAT MR MARKHAM DROVE THOSE ACQUISITION TALKS MUCH FURTHER AND FASTER THAN DR VAGELOS OR THE MERCK BOARD HAD EXPECTED WHEN NEWS OF THE TALKS SURFACED EARLIER THIS WEEK ANALYSTS WIDELY QUESTIONED WHETHER MERCK KNEW WHAT IT WAS DOING SAYS SMITH BARNEY'S MS HEUER THE MARRIAGE OF HIGHTECH RESEARCH AND SCREWDOWN PRICE CUTTING ILLUSTRATES HOW FUZZY THE STRATEGIC VISION AND HOW DESPERATE THE QUICK FIXES HAVE BECOME IN THE DRUG INDUSTRY BUT MR MARKHAM'S DEPARTURE FOR PERSONAL REASONS HAS LEFT EMPLOYEES PERPLEXED AND SPECULATING WILDLY IF IT WASN'T FOR BUSINESS REASONS WHAT CAN IT BE THAT CAN'T BE MENTIONED ASKS ONE WHATEVER THE REASON PEOPLE WHO KNEW HIM VIEW THE MOVE AS TRAGIC BELIEVE ME HE'S LIVED FOR THAT JOB IT WAS RIGHT WITHIN HIS GRASP AND HE DESERVED IT SAYS A FORMER MERCK SENIOR MANAGER 9307160072 930716 PETROLANE REVAMPING COMPLETED NEW YORK PETROLANE INC AND UGI CORP SAID THE FINANCIAL RESTRUCTURING OF QFB PARTNERS AND ITS SUBSIDIARIES INCLUDING PETROLANE HAS BEEN COMPLETED AS REPORTED QFB A JOINT VENTURE OF AFFILIATES OF QUANTUM CHEMICAL CORP AND AFFILIATES AND SHAREHOLDERS OF FIRST BOSTON CORP AND UGI SAID A PREPACKAGED PLAN FOR QFB AND ITS SUBSIDIARIES WAS CONFIRMED IN BANKRUPTCY COURT FIRST BOSTON IS A UNIT OF CS HOLDING'S CS FIRST BOSTON GROUP INC AS PART OF THE PLAN MANAGEMENT RESPONSIBILITY FOR PETROLANE WAS TRANSFERRED TO AMERIGAS THE PROPANE MARKETING UNIT OF UGI FROM SUBURBAN PROPANE THE PROPANE MARKETING UNIT OF QUANTUM AMERIGAS NOW OWNS 10 OF PETROLANE AND ITS STAKE WILL INCREASE TO 30 AS IT BUYS OUT FORMER DEBENTURE HOLDERS THE COMPANIES SAID 9307160071 930716 BUSINESS BRIEF WEATHERFORD INTERNATIONAL INC COMPANY AGREES TO ACQUIRE TUBOSCOPE FOR 370 MILLION WEATHERFORD INTERNATIONAL INC AGREED TO BUY TUBOSCOPE VETCO INTERNATIONAL CORP IN A STOCK TRANSACTION VALUED AT 370 MILLION UNDER THE PROPOSAL WEATHERFORD WILL EXCHANGE ONE SHARE OF ITS COMMON STOCK FOR EACH SHARE OF TUBOSCOPE SUBJECT TO ADJUSTMENT BASED ON THE AVERAGE CLOSING PRICE OF WEATHERFORD STOCK PRIOR TO THE DEAL'S CLOSE THE ANNOUNCEMENT WAS MADE AFTER THE MARKETS CLOSED WEATHERFORD CLOSED AT 1125 DOWN 25 CENTS IN TRADING ON THE AMERICAN STOCK EXCHANGE IN NATIONAL OVERTHECOUNTER TRADING TUBOSCOPE WAS UNCHANGED AT 9 BOTH COMPANIES ARE BASED IN HOUSTON WEATHERFORD MAKES AND SELLS SPECIALIZED OILFIELD EQUIPMENT AND PROVIDES FISHING SERVICES TUBOSCOPE IS A PIPELINE INSPECTION AND COATINGS SERVICES COMPANY COMBINED THE COMPANIES WOULD HAVE 497 MILLION IN ANNUAL REVENUE THE LETTER OF INTENT WILL TERMINATE IF A DEFINITIVE AGREEMENT IS NOT REACHED BY AUG 20 9307160070 930716 INDUSTRY FOCUS RETAILERS TAKE ON THE ROLE OF REALESTATE DEVELOPER BUYING MORE PROPERTIES AND LEASING LESS BRINGS SOME DANGERS BY TARA PARKER POPE STAFF REPORTER OF THE WALL STREET JOURNAL ADD REAL ESTATE TO THE SHOPPING LIST OF THE NATION'S BIG RETAILERS CAUGHT BETWEEN A TIGHTFISTED BANKING ENVIRONMENT AND THEIR OWN APPETITE TO EXPAND BIG RETAILERS INCREASINGLY ARE ADOPTING THE ROLE OF REAL ESTATE DEVELOPER USING THEIR OWN ACCESS TO FINANCING COMPANIES SUCH AS WALMART STORES INC AND DAYTON HUDSON CORP ARE LEASING LESS BUYING MORE AND SOMETIMES BUILDING ENTIRE STRIP SHOPPING CENTERS WALMART WHICH SINCE FEBRUARY HAS ISSUED 175 BILLION IN DEBT SECURITIES TO FUND ITS EXPANSION PLANS SAID IT NOW BUILDS 85 TO 90 OF ITS OWN STORES UP FROM 30 TO 50 IN THE LATE 1980S KMART CORP SAID ALTHOUGH IT STILL PREFERS TO WORK WITH DEVELOPERS THE NUMBER OF STORES IT BUILDS HAS NEARLY DOUBLED TO ABOUT 20 IN THE PAST FEW YEARS DAYTON HUDSON OPERATOR OF TARGET DISCOUNT STORES SAID IT DEVELOPED ONLY ABOUT 20 OF ITS STORES FIVE YEARS AGO BUT IN 1992 THAT NUMBER SPIKED TO ABOUT 80 AND THE COMPANY SAYS IT NOW IS DEVELOPING ABOUT HALF OF ITS STORES THE ARRANGEMENT HOLDS SOME ADVANTAGES FOR THE RETAILERSCUMDEVELOPERS LAND CAN BE BOUGHT ON THE CHEAP THESE DAYS AND RETAILERS WITH A BIG REAL ESTATE INVENTORY CAN CONTROL THEIR OWN DESTINY BY DECIDING WHAT OTHER SHOPS MOVE NEARBY OR BY ROPING OFF BIG TRACTS TO KEEP COMPETITORS AT BAY BUT SOME ANALYSTS ALONG WITH SOME RETAILERS THEMSELVES WARN THAT THE NEW ARRANGEMENT BRINGS NEW DANGER THEY FEAR THE SHIFT CAN DRAIN MANAGEMENT TIME TIE UP ASSETS AND DRAG DOWN EARNINGS FOR US IT IS A METHOD AND A WAY FOR US TO GET OUR RETAIL STORES AND OUR CLUBS OPEN SAID WALMART'S EXECUTIVE VICE PRESIDENT THOMAS P SEAY BUT IT TAKES DOLLARS AWAY FROM US FOR MERCHANDISE AND REQUIRES US TO PUT IT IN FIXED ASSETS IN ORDER TO KEEP OUR GROWTH IF WE HAD OUR CHOICE I THINK WE'D BE OUT THERE WORKING WITH DEVELOPERS MOST RETAILERS SAY THEY WOULD RATHER LET SOMEONE ELSE DO THE WORK BUT MANY OF THE BIG DEVELOPERS AREN'T BUILDING AND DEEPPOCKET RETAILERS USUALLY CAN GET BETTER DEALS BORROWING FROM PUBLIC MARKETS A 1 BILLION DEBT OFFERING BY WALMART IN MAY YIELDED INTEREST RATES BETWEEN 653 AND 7327COMPARED WITH AN INTEREST RATE OF 9 OR MORE FOR A TYPICAL DEVELOPMENT LOAN THE SURGE IN RETAILSPONSORED DEVELOPMENT IN THE LAST FEW YEARS HARKS BACK TO THE 1950S WHEN BIG RETAILERS FUNDED AND BUILT THE FIRST SHOPPING MALLS ISAAC LAGNADO A PRINCIPAL IN THE NEW YORKBASED CONSULTING FIRM TACTICAL RETAIL SOLUTIONS SAID MOST RETAILERS BACKED OUT OF THE DEVELOPMENT ROLE IN THE EARLY 1970S IT'S INTRIGUING THAT WE ARE KIND OF REVISITING THAT TERRITORY WITH TOTALLY DIFFERENT PLAYERS MR LAGNADO SAID SO LONG AS IT REMAINS AN ADHOC OCCASIONAL USE OF RESOURCES IT'S NO BIG DEAL IF IT'S HABITUAL THEN THEY'RE ENTERING A NEW LINE OF BUSINESS BOUGHT MORE THAN NECESSARY SOMETIMES THE DEVELOPMENT GAME EXTENDS BEYOND RETAILERS' OWN IMMEDIATE NEEDS WALMART SAID IN ORDER TO GET A SITE IT WANTED IN CHESAPEAKE VA THE COMPANY HAD TO BUY 72 ACRES MORE THAN THREE TIMES THE LAND IT NEEDED FOR ITS WALMART AND SAM'S WAREHOUSE STORES THE DISCOUNT RETAILER LEFT WITH A 50ACRE SURPLUS SAID IT DEVELOPED A STRIP CENTER BY SELLING OFF SEVERAL PARCELS TO OTHER RETAILERS ALTHOUGH MOST RETAIL DEVELOPMENT DEALS ARE TRIGGERED BY A LACK OF OUTSIDE FINANCING THAT ISN'T ALWAYS THE CASE KMART CORP'S PACE WAREHOUSE UNIT SAID AS PART OF ITS PLANS TO DEVELOP A STORE ON A PUERTO RICO SITE THE LANDOWNER WHICH HAD FINANCING STILL WANTED PACE TO DEVELOP ANOTHER 90000 SQUARE FEET OF RETAIL SPACE WHAT WE'RE BRINGING IS STRICTLY DEVELOPMENT EXPERTISE SAID ALEX J LELLI JR PACE VICE PRESIDENT FOR REAL ESTATE AND DEVELOPMENT ALTHOUGH RETAILERS MOAN ABOUT THE HASSLES ASSOCIATED WITH REAL ESTATE THEY HAVE DISCOVERED A WELCOME BYPRODUCT OF DOITYOURSELFDEVELOPMENT THE ABILITY TO CONTROL WHO AND WHAT CROPS UP NEXT DOOR AND THE ABSENCE OF A DEVELOPER'S BROKERING THE SURROUNDING ACREAGE HAS LEFT RETAILERS TO COORDINATE WITH EACH OTHER OF COURSE WE WANT SOMEONE WITH A USE THAT FITS OUR USE SAID TOYS R US INC VICE CHAIRMAN MIKE GOLDSTEIN IF WE'RE IN AN AREA AND WE SEE THERE'S NO HOMEIMPROVEMENT STORE NEARBY IT'S A NATURAL RETAILERS ARE EVEN RUNNING INTO EACH OTHER WHEN THEY SHOP FOR PROPERTY TANDY CORP'S INCREDIBLE UNIVERSE CONSUMER ELECTRONICS STORE SAID THAT WHEN IT SELECTED A SITE FOR ITS NEW DALLAS STORE IT BOUGHT THE LAND FROM WALMART SOME COMPANIES HAVE TAKEN DEVELOPMENT EVEN FURTHER FOR INSTANCE SEVERAL ANALYSTS SAY PRICE CO WHICH LAUNCHED THE FIRST DISCOUNT WAREHOUSE CONCEPT IN 1976 HAS BECOME TOO ENAMORED OF REAL ESTATE OVER THE YEARS THE COMPANY GOBBLED UP PROPERTY FAR BEYOND WHAT IT NEEDED FOR INDIVIDUAL STORES DEVELOPING ENTIRE COMMERCIAL CENTERS THE WAREHOUSE RETAILER ESTIMATES THAT AS MANY AS 25 OF ITS 90 WAREHOUSES ARE IN COMPANYDEVELOPED SHOPPING CENTERS THE COMPANY SAID IT EXPECTS TO COMPLETE A SHOPPING CENTER THIS SUMMER IN WESTBURY LONG ISLAND WHERE IT IS BUILDING AND LEASING SPACE FOR A PRICE CLUB AS WELL AS A KMART STORE AND KMART SUBSIDIARIES GENERAL MILLS INC'S OLIVE GARDEN UNIT AND A HANDFUL OF OTHER RETAILERS JOHN THELAN EXECUTIVE VICE PRESIDENT REAL ESTATE AT PRICE CO SAID THE COMPANY PREFERS TO DEVELOP ITS OWN CENTERS BECAUSE WE ALWAYS WANTED TO BE IN CONTROL OF OUR DESTINY BUT THE COMPANY HAS STRUGGLED IN RECENT YEARS POSTING A THIRDQUARTER EARNINGS DROP OF 40 AND RECENTLY ANNOUNCED A MERGER WITH KIRKLAND WASHBASED COSTCO WHOLESALE CORP PRICE CO'S WOES HAVE SOME ANALYSTS CONCERNED THAT THE COMPANY THINKS TOO MUCH ABOUT REAL ESTATE AND NOT ENOUGH ABOUT RETAIL MEANWHILE PRICE IN LATE 1991 CREATED A REIT TO HELP GET SOME OF ITS SURPLUS REAL ESTATE OFF THE BALANCE SHEET IN MY VIEW THEY HAVE NOT EXPANDED THEIR UNIT BASE AS AGGRESSIVELY AS THEY NEEDED TO AND THEY FOCUSED TOO MUCH ON THE DEVELOPMENT BUSINESS SAID RETAIL ANALYST CHRISTOPHER E VROOM OF ALEX BROWN & SONS IT'S TAKEN AWAY MANAGEMENT TIME THAT COULD HAVE BEEN SPENT GROWING THE BUSINESS FOR SOME IN REAL ESTATE THE ONSET OF RETAIL DEVELOPMENT HAS A DARK SIDE REAL ESTATE INDUSTRY EXPERTS SAY THE FATE OF ENTIRE SHOPPING CENTERS OFTEN RESTS WITH RETAILERS WHO OWN A KEY PIECE OF REAL ESTATE OWNERSHIP GIVES THE RETAILER THE ABILITY TO GO DARK OR ABANDON THE SITE SHOULD IT WANT TO CHANGE LOCATIONS THEY CAN IN ESSENCE KILL THE LOCATION BECAUSE THEY DON'T WANT ANOTHER STORE GOING IN SAID MARTIN DEBROVNER PRESIDENT AND CHIEF OPERATING OFFICER OF WEINGARTEN REALTY INC A HOUSTON REAL ESTATE INVESTMENT TRUST TERRY KITTLESON DIRECTOR OF NATIONAL RETAIL FOR TRAMMEL CROW CO SAID THE COMPANY HAS WORKED EXTENSIVELY WITH KMART'S DEVELOPMENT PROGRAM BUT PREDICTS THAT THE OVERALL RETAILREAL ESTATE TREND WILL BE TEMPORARY IT SHIFTS ALL THE RISK ASSOCIATED WITH REAL ESTATE FROM THE DEVELOPER TO THE RETAILER MR KITTLESON SAID MOST RETAILERS WOULD WANT TO AVOID THAT THE ONLY REASON THEY'RE DOING THIS IS BECAUSE THE MARKET HAS REQUIRED IT 9307160068 930716 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE WHITE HOUSE DEMOCRATS SEEK TO BOOST SUPPORT FOR COMPROMISE ECONOMIC PLAN BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS FORMAL NEGOTIATIONS BEGAN FOR A COMPROMISE VERSION OF PRESIDENT CLINTON'S ECONOMIC PROGRAM THE WHITE HOUSE AND CONGRESSIONAL LEADERS HAVE STARTED TO ANTICIPATE AN OUTLINE THEY HOPE WILL SOLIDIFY DEMOCRATS' SHAKY SUPPORT THE CLINTON ADMINISTRATION AND DEMOCRATIC LEADERS ARE SUGGESTING TO LAWMAKERS THAT THE BILL WILL INCLUDE ONLY A MINIMAL ENERGY TAX PROBABLY ON TRANSPORTATION FUELS ALSO SUGGESTED IS THAT WAYS WILL BE FOUND TO INCLUDE SOCIAL INITIATIVES PRIMARILY ONE FOR ENTICING BUSINESS INVESTMENT TO DEPRESSED EMPOWERMENT ZONES A PROPOSAL THAT IS CRITICAL TO HOLDING THE SUPPORT OF THE HOUSE'S CONGRESSIONAL BLACK CAUCUS IN ADDITION THE WHITE HOUSE AND TOP CONGRESSIONAL DEMOCRATS ARE REEMPHASIZING THEIR COMMITMENT TO REACHING TOTAL DEFICIT REDUCTION OF 500 BILLION OVER FIVE YEARS IN THE WAKE OF SOME LAWMAKERS' SUGGESTIONS THAT THEY WOULD FALL SHORT THAT'S OUR COVER SAID REP MIKE SYNAR D OKLA GEORGIA REP BUDDY DARDEN A CONSERVATIVE DEMOCRAT WHO RELUCTANTLY VOTED FOR THE HOUSE DEFICITREDUCTION BILL IN MAY SAID YESTERDAY THAT HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO ASSURED HIM AND A FEW OTHER DEMOCRATS OVER LUNCH THAT 43CENTS ON GASOLINE REPRESENTS THE HIGHWATER MARK FOR AN ENERGY TAX AN INCREASE OF 43 CENTS A GALLON FOR TRANSPORTATION FUELS IS A PROPOSAL IN THE SENATEPASSED BILL THE HOUSE INCLUDED IN ITS BILL MR CLINTON'S ORIGINAL PROVISION FOR A BROADBASED TAX ON ALL ENERGY CONSUMPTION BUT MANY DEMOCRATS OPPOSED IT AT THE TIME AND THAT TAX NOW IS WRITTEN OFF AS DEAD RECENTLY A NUMBER OF HOUSE DEMOCRATS HAVE BEEN ARGUING FOR A SMALLER ENERGY TAX OR NONE AT ALL THE CLINTON TAX WOULD HAVE RAISED NEARLY 72 BILLION OVER FIVE YEARS AND THE SENATE FUELS TAX WOULD RAISE 50 BILLION LESS THAN THAT IN EFFECT LEAVING NEGOTIATORS WITH A GAP IF THEY ARE TO MEET THEIR DEFICITREDUCTION GOAL REP BEN CARDIN D MD A MEMBER OF THE TAXWRITING HOUSE WAYS AND MEANS COMMITTEE PREDICTED NEGOTIATORS WILL NEED AN ENERGY TAX THAT WILL BRING IN 40 BILLION OVER FIVE YEARS NEARLY TWICE WHAT THE SENATE FUELS TAX RAISES MR CLINTON IN LOSING HIS SOCALLED BTU TAX ON ENERGY COULD WIN SUPPORT FOR HIS OVERALL DEFICITREDUCTION PLAN FROM AMONG THE 38 DEMOCRATS WHO OPPOSED HIM IN THE HOUSE MOSTLY BECAUSE OF THAT TAX ABOUT TWO DOZEN OF THE DEMOCRATS MET YESTERDAY LOUISIANA REP JAMES HAYES WHO DESCRIBED HIMSELF AS HIGHLY UNLIKELY TO SWITCH ESTIMATED THAT FIVE OR SIX OTHERS MIGHT WELL DO SO WHAT YOU HAVE TO DO HE CAUTIONED IS BALANCE THAT AGAINST THE NUMBER OF PEOPLE WHO HAVE BEEN HOME HAVING VOTED YES FOR THE HOUSE BILL AND MIGHT BE RECONSIDERING BECAUSE THEY'RE HEARING FROM PEOPLE THAT THIS WHOLE THING STINKS HE SAID THAT NUMBER COULD BE AS HIGH AS A DOZEN THE CALCULUS IS CRITICAL SINCE BOTH THE HOUSE AND SENATE BILLS PASSED BY THE NARROWEST MARGINS LEAVING NEGOTIATORS SCRAMBLING TO FIND A COMPROMISE THAT CAN COMMAND A MAJORITY NO REPUBLICANS HAVE VOTED FOR EITHER THE HOUSE OR SENATE BILL MEANWHILE REP CHARLES RANGEL D NY MET WITH WHITE HOUSE OFFICIALS INCLUDING BUDGET DIRECTOR LEON PANETTA TO DISCUSS HOW NEGOTIATORS CAN INCLUDE THE EMPOWERMENTZONES PROPOSAL IN THE FINAL COMPROMISE WITHOUT BEING VULNERABLE TO A PARLIAMENTARY CHALLENGE BY REPUBLICANS IN THE SENATE REP RANGEL A SENIOR MEMBER OF BOTH THE WAYS AND MEANS COMMITTEE AND THE BLACK CAUCUS EXPRESSED CAUTIOUS OPTIMISM AFTERWARD THAT SOMETHING WILL BE WORKED OUT THE SENATE'S RULE AGAINST EXTRANEOUS PROVISIONS IN A DEFICITREDUCTION BILL ALSO THREATENS OTHER PROVISIONS IMPORTANT TO THE CAUCUS WHOSE VOTES ARE CRITICAL TO ANY BILL'S PASSAGE THOSE PROVISIONS INCLUDE FOODSTAMP FUNDING AND AN EXPANDED TAX CREDIT FOR THE WORKING POOR THE HOUSE'S CHIEF NEGOTIATOR WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL NOTED IN AN NBC INTERVIEW YESTERDAY THAT THERE'S NO WAY IN THE WORLD THAT I COULD PASS A BILL ON THE FLOOR OF THE HOUSE WITHOUT DOING SOMETHING FOR THOSE PEOPLE LIKEWISE AS THE HOUSESENATE CONFERENCE COMMITTEE OFFICIALLY CONVENED SENATE BUDGET COMMITTEE CHAIRMAN JIM SASSER D TENN ACKNOWLEDGED THE FRUSTRATION OF HOUSE DEMOCRATS ABOUT SENATE RULES THE PRESIDENT'S PROGRAM WILL FALL BY THE WAYSIDE UNLESS A SOLUTION IS FOUND HE WARNED BUT HE ADDED I THINK WE CAN NEGOTIATE A SAFE PASSAGE THROUGH THIS PROCEDURAL REEF ON OTHER ISSUES DEMOCRATIC LAWMAKERS SAY THE PRESIDENT HAS SIGNALED HIS SUPPORT FOR THE HOUSE BILL'S MORE GENEROUS WRITEOFF FOR SMALL BUSINESSES' EQUIPMENT PURCHASES THE HOUSE BILL WOULD ALLOW 25000 IN INVESTMENTS TO BE WRITTEN OFF WHILE THE SENATE CALLED FOR 20500 ALSO MR CLINTON OPPOSES THE SURTAX THAT THE SENATE BILL WOULD ADD FOR CAPITAL GAINS EARNED BY THOSE WITH INCOME OF MORE THAN 250000 IN A YEAR HE SUPPORTS THE SENATE'S TAX BREAK FOR BUSINESSES SUBJECT TO THE ALTERNATIVE MINIMUM TAX WHICH IS LESS GENEROUS THAN THE HOUSE VERSION OR HIS OWN THE PRESIDENT VISITED CONGRESSIONAL LEADERS AT THE CAPITOL YESTERDAY AND AFTERWARD SAID WE OUGHT TO MAKE THIS THE BIGGEST DEFICITREDUCTION PACKAGE THE COUNTRY'S HAD HE TICKED OFF HIS WISH LIST FOR THE TAX CONFERENCE AND LEFT OFF AN ENERGY TAX ASKED ABOUT THE OMISSION HE PRAISED THE LEVY AS WAY TO PROMOTE CONSERVATION AND A CLEANER ENVIRONMENT AS WELL AS A WAY TO REDUCE THE DEFICIT BUT HE DIDN'T INSIST THAT IT BE INCLUDED IN THE FINAL COMPROMISE HE DID SAY I VERY MUCH WANT SOME OF THE INCENTIVES IN THIS PLAN THAT WERE IN THE HOUSE BILL EMPHASIZING THE TAX BREAKS RATHER THAN THE TAX INCREASES THAT HE FAVORS HE CITED THE TAX CREDIT FOR POOR WORKERS A PROVISION TO MAKE PERMANENT A CREDIT FOR BUSINESS RESEARCH COSTS A PROPOSAL TO CUT CAPITALGAINS TAXES FOR NEW INVESTMENTS IN CERTAIN COMPANIES AND THE EMPOWERMENT ZONES THE FULL HOUSESENATE CONFERENCE COMMITTEE OF MORE THAN 200 MEMBERS 53 SENATORS AND 157 REPRESENTATIVES MET FOR ABOUT HALF AN HOUR YESTERDAY FOR WHAT IS LIKELY TO BE ITS ONLY SESSION A NUMBER OF SUBCONFERENCES WILL SETTLE SOME OF THE ISSUES BUT MOST OF THE MAJOR DECISIONS PARTICULARLY THOSE ON TAXES AND MEDICARE WILL BE MADE BY SENIOR MEMBERS OF THE HOUSE AND SENATE TAX COMMITTEES ALONG WITH DEMOCRATIC LEADERS THE TAX CONFEREES ALSO MET BRIEFLY YESTERDAY BUT DON'T PLAN TO ACTUALLY START NEGOTIATING UNTIL NEXT WEEK PARTY LEADERS HOPE FOR AN AGREEMENT AND FINAL VOTES BEFORE CONGRESS RECESSES EARLY NEXT MONTH BECAUSE THEY HAVE OPPOSED THE DEFICITREDUCTION BILLS REPUBLICANS WILL HAVE NO ROLE IN THE NEGOTIATIONS BUT THEY TOOK THE OPPORTUNITY AT YESTERDAY'S PUBLIC FORUMS TO BLAST THE DEMOCRATS OHIO REP JOHN KASICH SENIOR REPUBLICAN ON THE HOUSE BUDGET COMMITTEE CALLED THE PROPOSED TAX INCREASES A JOB KILLER BUT REP GEPHARDT SAID OF THE DEFICITREDUCTION PACKAGES SEVENTY PERCENT OF THE REVENUES COME FROM PEOPLE WHO EARN 200000 OR MORE THAT'S FAIR THAT'S RIGHT OUTSIDE THE CAPITOL REPUBLICANS ARE STEPPING UP ANTITAX PRESSURE ON DEMOCRATS THE REPUBLICAN NATIONAL COMMITTEE WORKING WITH STATE PARTY ORGANIZATIONS SAYS IT HAS INCREASED TO 50 FROM 34 THE NUMBER OF LAWMAKERS BEING TARGETED IN RADIO ADS THAT CONDEMN TAXANDPRETEND DEMOCRATS FOR ITS PART THE DEMOCRATIC NATIONAL COMMITTEE PLANS TODAY TO UNVEIL NEW ADS DEFENDING MR CLINTON'S PROGRAM AND ACCUSING REPUBLICANS OF FAILING TO OFFER REASONABLE ALTERNATIVES JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9307160067 930716 ABREAST OF THE MARKET INDUSTRIALS ADD 838 TO 355093 BUT PROFITTAKING SAPS MARKET BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROFITTAKING AFTER WEDNESDAY'S RALLY LEFT STOCKS MOSTLY LOWER YESTERDAY BUT BLUE CHIPS MANAGED TO ADVANCE THE DOW JONES INDUSTRIAL AVERAGE WHICH LEAPT 2711 WEDNESDAY ADDED 838 OR 024 TO REACH 355093 JUST SHORT OF THE 355483 RECORD SET MAY 27 BUT BROADER INDEXES FINISHED LOWER AND BIG BOARD DECLINERS LED ADVANCERS 1013 TO 948 VOLUME WAS ACTIVE AT AROUND 253320000 SHARES BUT BELOW WEDNESDAY'S 285900000 THE STANDARD & POOR'S 500STOCK INDEX LOST 086 OR 019 TO 44922 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 039 OR 016 TO 24896 AND THE DOW JONES EQUITY MARKET INDEX SLIPPED 078 OR 018 TO 42722 THIS TYPE OF HESITATION JUST UNDER AN ALLTIME HIGH FOR THE DOW IS VERY NATURAL SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS BECAUSE THIS BULL LEG IS ALMOST THREE YEARS OLD YOU BURST UP FOR A DAY AND THEN HAVE TO GO IN FOR R&R HE SAID MINNESOTA MINING & MANUFACTURING JUMPED 2 1/4 TO 110 JP MORGAN CLIMBED 1 1/2 TO 71 5/8 AND AMERICAN TELEPHONE & TELEGRAPH ADVANCED 1 3/8 TO A 52WEEK HIGH OF 64 THOSE STOCKS ALONE ADDED MORE THAN 12 POINTS TO THE INDUSTRIAL AVERAGE THE OIL PHARMACEUTICAL AND FORESTPRODUCTS GROUPS WERE ALL BATTERED AND SHARES OF STORAGE TECHNOLOGY PLUMMETED 7 7/8 OR 191 TO 33 1/4 AFTER A POOR EARNINGS REPORT HOWEVER MANY CYCLICAL AND BANK ISSUES ROSE OIL SHARES SLIPPED ON CONCERNS THAT THE PRICE OF CRUDE OIL WILL WEAKEN IN THE MONTHS AHEAD BECAUSE OF AN EXPECTED SALE OF IRAQI CRUDE AND INCREASED PRODUCTION BY KUWAIT CHEVRON FELL 1 TO 83 1/2 TEXACO DROPPED 1 1/4 TO 61 3/4 AND UNOCAL EASED 7/8 TO 28 3/8 A BROKERAGE FIRM'S RATINGS DOWNGRADE BATTERED THE DRUG GROUP SMITH BARNEY HARRIS UPHAM & CO CUT THE GROUP TO UNDERPERFORM FROM NEUTRAL ANALYST CHRISTINA HEUER PREDICTED DRUG SHARES COULD DROP 20 TO 30 AND SAID SOME PHARMACEUTICAL COMPANIES COULD CUT THEIR DIVIDENDS TO PRESERVE CASH MERCK FELL 1 TO 33 PFIZER SLID 1 1/2 TO 63 1/4 BRISTOLMYERS SQUIBB DROPPED 2 TO 58 1/8 WARNERLAMBERT LOST 1 1/4 TO 67 1/2 AND JOHNSON & JOHNSON DECLINED 7/8 TO 39 5/8 FORESTPRODUCTS SHARES MEANWHILE FELL AFTER DISAPPOINTING NEWS FROM WEYERHAEUSER TACOMA WASH THE COMPANY REPORTED SECONDQUARTER NET INCOME OF 89 CENTS A SHARE INCLUDING A ONETIME GAIN OF 18 CENTS COMPARED WITH YEAREARLIER PROFIT OF 45 CENTS A SHARE BUT THIRDQUARTER RESULTS WILL BE SHARPLY LOWER THAN THE SECONDQUARTER NUMBERS WEYERHAEUSER SAID SUNDSTRAND SHED 2 TO 39 THE COMPANY POSTED SECONDQUARTER PROFIT FROM CONTINUING OPERATIONS OF 54 CENTS A SHARE IMPROVING UPON A YEAREARLIER LOSS ON A CHARGE BUT COMING IN BELOW EXPECTATIONS THE ROCKFORD ILL COMPANY SAID IT EXPECTS WEAKNESS IN PARTS OF THE COMMERCIAL AEROSPACE MARKET TO PERSIST AT LEAST INTO EARLY NEXT YEAR US SURGICAL SKIDDED TO 24 IN TRADING FOLLOWING THE BIG BOARD CLOSE AFTER THE NORWALK CONN MEDICALDEVICE MAKER RELEASED DISAPPOINTING SECONDQUARTER RESULTS THE COMPANY REPORTED A LOSS OF 39 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 58 CENTS THE STOCK HAD EASED 3/4 TO 26 7/8 DURING THE REGULAR MARKET DAY PROCTER & GAMBLE LOST 7/8 TO 51 5/8 THE CINCINNATI HOUSEHOLDPRODUCTS CONCERN DISCLOSED PLANS TO CUT 13000 JOBS OR 12 OF ITS WORK FORCE AND CLOSE 30 PLANTS OR 20 OF ITS TOTAL THE COMPANY WILL ESTABLISH A 15 BILLION RESERVE TO COVER THE COSTS OF THE MOVES PROGRESSIVE CORP JUMPED 4 1/2 TO 37 3/8 THE MAYFIELD HEIGHTS OHIO INSURER REPORTED SECONDQUARTER NET JUMPED TO 111 A SHARE FROM 60 CENTS A YEAR EARLIER AMSCO INTERNATIONAL FELL 3 1/4 TO 12 1/2 THE PITTSBURGH COMPANY ESTIMATED ITS SECONDQUARTER OPERATING PROFIT AT 12 CENTS A FULLY DILUTED SHARE NET INCOME WAS 26 CENTS A SHARE A YEAR EARLIER 9307160066 930716 CREDIT MARKETS BOND RALLY STALLS BUT MORE LARGE COMPANIES SCRAMBLE TO ISSUE DEBT AMID DECLINES IN RATES BY TOM HERMAN AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE BOND MARKET'S POWERFUL RALLY STALLED YESTERDAY AFTER SOARING WEDNESDAY TREASURY NOTE AND BOND PRICES MARKED TIME MOST OF YESTERDAY ENDING THE SESSION LITTLE CHANGED AMONG ACTIVELY TRADED ISSUES PRICES OF 10YEAR GOVERNMENT NOTES WERE UNCHANGED WHILE 30YEAR BONDS INCHED HIGHER THE TREASURY'S BENCHMARK 30YEAR BONDS TRADED LATE YESTERDAY AT 107 11/32 UP 2/32 FROM LATE WEDNESDAY THE YIELD EASED TO 655 THE LOWEST SINCE THE GOVERNMENT LAUNCHED REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 LURED BY RECENT DECLINES IN BORROWING COSTS MORE BIG COMPANIES ARE RUSHING TO RAISE MONEY IN THE BOND MARKETS FOR EXAMPLE COCACOLA CO YESTERDAY SOLD 150 MILLION OF 6 NOTES DUE IN 10 YEARS THOSE NOTES WERE PRICED AT 99809 TO YIELD 6026 WHICH WAS ONLY 032 PERCENTAGE POINT ABOVE COMPARABLE TREASURY NOTES AS TREASURY BOND YIELDS HAVE TUMBLED SO HAVE MORTGAGE RATES HITTING THEIR LOWEST LEVELS IN MORE THAN TWO DECADES ACCORDING TO THE LATEST WEEKLY SURVEY BY FEDERAL HOME LOAN MORTGAGE CORP THE AVERAGE RATE ON 30YEAR FIXEDRATE MORTGAGES HAS TUMBLED TO 716 THIS WEEK FROM 719 LAST WEEK AND 809 A YEAR AGO IN THE NORTHEAST THE AVERAGE RATE THIS WEEK HAS FALLEN TO 706 THE LOWEST OF ANY REGION FOR 15YEAR FIXEDRATE MORTGAGES THE NATIONAL AVERAGE HAS FALLEN TO 667 FROM 671 LAST WEEK AND 763 A YEAR AGO SEVERAL WALL STREET TRADERS PREDICT INTEREST RATES MAY RISE SLIGHTLY OVER THE NEXT FEW WEEKS BECAUSE OF A HUGE WAVE OF TREASURY BORROWING THAT WILL HIT THE CREDIT MARKETS SOON THE TREASURY IS EXPECTED TO SELL ROUGHLY 39 BILLION OF NOTES AND BONDS DURING THE SECOND WEEK IN AUGUST IN WHAT IS KNOWN AS THE GOVERNMENT'S QUARTERLY FINANCING OPERATION EVEN SO SOME OF WALL STREET'S BESTKNOWN GURUS CONTEND THAT LONGTERM BONDS STILL REMAIN VERY ATTRACTIVE INVESTMENTS FOR EXAMPLE EDWARD S HYMAN AND NANCY R LAZAR OF ISI GROUP INC ARGUE THAT ANY INCREASE IN INTEREST RATES CAUSED BY THE TREASURY'S QUARTERLY BORROWING WILL BE SHORTLIVED OVER THE NEXT FEW MONTHS BOND YIELDS ARE LIKELY TO CONTINUE TO MOVE LOWER TO ROUGHLY THE 63 LEVEL SAYS MS LAZAR EXECUTIVE VICE PRESIDENT AT ISI AN INVESTMENT MANAGEMENT COMPANY INFLATION SEEMS LIKELY TO CONTINUE TO SLOW BASED ON THE RECENT DECLINES IN OIL PRICES AND COMPANIES CONTINUING TO CUT PRICES SUCH AS AIRLINE FARE WARS IN ADDITION GIVEN THE RECENT INCREASE IN LAYOFF ANNOUNCEMENTS WAGE INFLATION IS LIKELY TO REMAIN LOW HOPING FOR FURTHER DECLINES IN INTEREST RATES SOME CORPORATE TREASURERS ARE DELAYING BOND ISSUES INVESTMENT BANKERS SAY BANKERS EXPECT THE BORROWING PACE TO INCREASE IF TREASURY BOND YIELDS SINK BELOW THE PSYCHOLOGICALLY IMPORTANT 65 LEVEL BUT OTHER COMPANIES ARE STRIKING NOW WHILE THE BOND MARKETS ARE HOT AND A FEW CORPORATIONS ARE SELLING UNUSUALLY LONGTERM DEBT ISSUES FOR EXAMPLE UTILITY ILLINOIS POWER CO YESTERDAY ISSUED 200 MILLION OF FIRST MORTGAGE BONDS DUE IN 32 YEARS WHICH IS TWO YEARS LONGER THAN THE LONGESTTERM TREASURY ISSUE THE BONDS WHICH ARE NONCALLABLE FOR 10 YEARS WERE PRICED TO YIELD 755 OR ONE PERCENTAGE POINT ABOVE COMPARABLE TREASURY BONDS ILLINOIS POWER ADDED THE EXTRA TWO YEARS BECAUSE IT FOUND THAT IT COULD DO SO WITHOUT HAVING TO PAY A HIGHER YIELD THAN FOR A 30YEAR ISSUE SAID STEVEN POLAND SENIOR FINANCIAL SPECIALIST AT ILLINOIS POWER THE UTILITY WAS LOOKING TO LENGTHEN ITS MATURITIES AND THIS IS THE LONGEST DEBT IT HAS EVER ISSUED MR POLAND SAID HE ADDED THAT THE COMPANY HAD CONSIDERED ISSUING EVEN LONGERTERM BONDS BUT DIDN'T DO SO BECAUSE IT DIDN'T WANT TO PAY A HIGHER YIELD DETAILS OF THE TREASURY'S QUARTERLY BORROWING WILL BE ANNOUNCED AUG 4 LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC EXPECTS THE TREASURY TO SELL 17 BILLION OF THREEYEAR NOTES 11 BILLION OF 10YEAR NOTES AND ANOTHER 11 BILLION OF 30YEAR BONDS THAT WOULD BE A RECORD TOTAL OF 39 BILLION UP FROM 35 BILLION IN THE MAY QUARTERLY REFUNDING THE THREEYEAR NOTES ARE EXPECTED TO BE AUCTIONED AUG 10 FOLLOWED BY THE 10YEAR NOTES ON AUG 11 AND THE 30YEAR BONDS ON AUG 12 I THINK THE MARKET MAY HAVE TROUBLE ABSORBING ALL THIS SUPPLY THUS LEADING TO SLIGHTLY HIGHER INTEREST RATES MR CRANDALL SAYS MR CRANDALL ALSO PREDICTS THE ECONOMY WILL STRENGTHEN IN COMING MONTHS PERSUADING THE FEDERAL RESERVE TO RAISE SHORTTERM INTEREST RATES THIS FALL BY THE END OF THIS YEAR 30YEAR TREASURY BOND YIELDS WILL BE BACK TO THE 7 LEVEL OR ABOVE HE PREDICTS PRICES OF MUNICIPAL BONDS ENDED GENERALLY UNCHANGED NEW ISSUANCE SLOWED MARKEDLY FROM THE TORRID PACE ON WEDNESDAY WHEN 3 BILLION WAS PRICED BY UNDERWRITERS SEEKING TO LOCK IN HISTORICALLY LOW RATES AND RETIRE OLDER HIGHERYIELDING SECURITIES YESTERDAY'S NEW DEALS WERE A 2413 MILLION ISSUE OF SUBORDINATED REVENUE REFUNDING SECURITIES FROM OAKLAND CALIF'S EAST BAY MUNICIPAL UTILITY DISTRICT WATER SYSTEM AND A 180 MILLION HAWAII GENERAL OBLIGATION REFUNDING OFFERING THE EAST BAY ISSUE WAS TENTATIVELY PRICED BY A MORGAN STANLEY & CO TO YIELD FROM 260 IN 1994 TO 550 IN 2021 HAWAII'S DEAL WAS REPRICED BY A MERRILL LYNCH & CO GROUP TO BOOST SOME YIELDS BY AS MUCH AS 005 PERCENTAGE POINT THE YIELD RANGE WAS FROM 245 IN 1994 TO 520 IN 20092010 COMPARED WITH THE ORIGINAL RANGE BETWEEN 240 IN 1994 AND 520 IN 20092010 IN SECONDARY DEALINGS THE 675 DENVER CITY AND COUNTY AIRPORT REVENUE SERIES C BONDS DUE 2022 ENDED UNCHANGED AT 103 1/4 TO YIELD 647 THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S 55 REFUNDING GENERAL TRANSPORTATION BONDS DUE 2022 ENDED FLAT AT 98 1/2 TO YIELD 560 CURRENTPRODUCTION MORTGAGE SECURITIES CREATED FROM 30YEAR LOANS MEANWHILE ENDED LITTLE CHANGED THE ARMS MARKET RECEIVED SUPPLY NUMBERS FOR JULY IN A REPORT FROM CHEMICAL BANK WHICH ACTS AS SERVICER FOR GINNIE MAE LOANS THE REPORT SHOWED THAT MORE THAN 1 BILLION IN NEW GINNIE MAE ARMS WERE PRODUCED THIS MONTH WELL ABOVE MARKET EXPECTATIONS MEANWHILE THE BROADER MORTGAGE MARKET DIGESTED THE LATEST REPORT FROM THE MORTGAGE BANKERS ASSOCIATION WHOSE INDEX OF REFINANCING ACTIVITY SURGED TO 10283 IN THE WEEK ENDED JULY 9 BEFORE LAST WEEK THE INDEX HADN'T REGISTERED OVER THE 1000 MARK SINCE MAY AND AMONG THE 30YEAR SECURITIES CURRENTLY IN PRODUCTION BY MORTGAGE BANKERS GINNIE MAE 65 ISSUES FOR AUGUST DELIVERY ENDED 1/32 HIGHER AT 100 4/32 FREDDIE MAC GOLD 65 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES BOTH FELL 1/32 TO 99 29/32 AND 99 25/32 RESPECTIVELY 9307160065 930716 CORRECTIONS & AMPLIFICATIONS HUGH PEYMAN IS DIRECTOR OF RESEARCH FOR THE SINGAPORE OFFICE OF KLEINWORT BENSON SECURITIES LTD AND PAUL SCHULTE IS A STRATEGIST AT CS FIRST BOSTON GROUP IN HONG KONG IN AN ARTICLE YESTERDAY ABOUT INFRASTRUCTURE SPENDING IN ASIA THEIR NAMES WERE MISSPELLED MOODY'S INVESTORS SERVICE INC LOWERED RATINGS ON 14 MILLION OF BENTLEY COLLEGE DEBT TO BAA1 FROM SINGLEA AN ADDITIONAL 28 MILLION OF DEBT CONTINUES TO BE RATED TRIPLEA BECAUSE IT IS INSURED BY THE MUNICIPAL BOND INSURANCE ASSOCIATION MOODY'S ALSO LOWERED RATINGS ON 729 MILLION OF BOSTON UNIVERSITY DEBT TO SINGLEA FROM SINGLEA1 1067 MILLION OF BOSTON UNIVERSITY DEBT THAT IS INSURED IS RATED TRIPLEA AND REMAINING DEBT IS UNRATED BY MOODY'S AN ARTICLE JUNE 29 INCORRECTLY SAID MOODY'S HAD LOWERED RATINGS ON 354 MILLION OF BENTLEY COLLEGE DEBT AND 309 MILLION OF BOSTON UNIVERSITY DEBT BASED ON INFORMATION SUPPLIED BY MOODY'S A MAJORITY OF THE STATE LAWS ENACTED LAST FALL CALLING FOR TERM LIMITS FOR MEMBERS OF CONGRESS WOULD LIMIT THE SERVICE OF HOUSE MEMBERS TO SIX YEARS THE LEGAL BEAT COLUMN WEDNESDAY SAID A MAJORITY HAD APPROVED EIGHTYEAR LIMITS 9307160064 930716 COMPUTER FIRMS EXPECTED TO POST A WEAK QUARTER IBM IS LIKELY TO REPORT LOSS ON LOWER SALES DIGITAL MAY TURN PROFIT BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE SECONDQUARTER EARNINGS OUTLOOK IS GLOOMY FOR ALL BUT A HANDFUL OF COMPUTER MAKERS BESIDES RELENTLESS PROFITMARGIN PRESSURE THE SLUMPING EUROPEAN ECONOMY WORRIES ANALYSTS BIG COMPUTER SALES REMAIN WEAK AND DESPITE COSTCUTTING PROFITS ARE SKIMPY PERSONALCOMPUTER SALES ARE BOOMING BUT MANY PC MAKERS' PROFITS ARE DROPPING INVESTORS HAVE SCANT HOPES FOR POSITIVE EARNINGS SURPRISES FOR THE JUNE QUARTER STUMBLING GIANT INTERNATIONAL BUSINESS MACHINES CORP IS LIKELY TO REPORT AN OPERATING LOSS A REVENUE DECLINE AND A BIG CHARGE REFLECTING MUCH LARGERTHANEXPECTED NUMBERS OF EMPLOYEES TAKING EARLY RETIREMENT AND BUYOUT PLANS JAY P STEVENS AN ANALYST WITH DEAN WITTER REYNOLDS INC PREDICTS AN OPERATING LOSS EQUAL TO 35 CENTS A SHARE BEFORE A CHARGE COMPARED WITH RESTATED NET INCOME OF 734 MILLION OR 129 A SHARE A YEAR EARLIER HE SAYS REVENUE IS LIKELY TO DROP 74 TO 15 BILLION FROM 162 BILLION THE BIG PROBLEM IS THE SLOWNESS IN MAINFRAMES AND BIG DISK DRIVES HE SAYS THOSE WERE ONCE VERY PROFITABLE NOW THEY'RE DISCOUNTED AS MUCH AS 50 MR STEVENS PREDICTS THAT IBM WILL TAKE A RESTRUCTURING CHARGE THAT WILL REDUCE ITS BOOK VALUE TO 40 A SHARE FROM 48 AND PREDICTS THE COMPANY WILL ALSO CUT ITS ANNUAL DIVIDEND TO 1 FROM 216 LAYOFFS SEEN AT IBM STEPHEN SMITH AN ANALYST WITH PAINEWEBBER INC SAYS THE RESTRUCTURING CHARGE WILL REFLECT VOLUNTARY DEPARTURES OF AS MANY AS 70000 EMPLOYEES UP FROM THE 25000 ORIGINALLY PLANNED HE SAYS THERE IS LIKELY TO BE ANOTHER CHARGE IN THE FISCAL THIRD QUARTER BECAUSE HE THINKS THE NEW CHIEF EXECUTIVE OFFICER LOUIS GERSTNER WILL HAVE TO START AN INVOLUNTARYLAYOFF PROGRAM ANALYSTS THINK IBM MAY RETURN TO PROFITABILITY IN THE FOURTH QUARTER NO 2 COMPUTER MAKER DIGITAL EQUIPMENT CORP APPEARS TO BE TURNING AROUND AHEAD OF IBM ANALYSTS SAY IT IS LIKELY TO REPORT ITS FIRST PROFIT IN EIGHT QUARTERS FOR THE JUNE PERIOD ITS FISCAL FOURTH QUARTER SHAO WANG AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO EXPECTS PERSHARE EARNINGS OF 1 TO 125 COMPARED WITH A NET LOSS OF 185 BILLION OR 1476 A SHARE AFTER A 15 BILLION RESTRUCTURING CHARGE THEY'VE DONE A GOOD JOB CUTTING COSTS HE SAYS THE REAL STORY HERE IS REVENUE HE PREDICTS THAT REVENUE FOR THE QUARTER WILL RISE NARROWLY TO 396 BILLION FROM 391 BILLION A YEAR EARLIER OTHER ANALYSTS ARE LESS OPTIMISTIC WITH SOME ESTIMATES OF QUARTERLY EARNINGS AS LOW AS 40 CENTS A SHARE MR STEVENS OF DEAN WITTER RECENTLY CUT HIS EARNINGS ESTIMATE FOR THE QUARTER TO 99 CENTS A SHARE FROM 119 AND EXPECTS REVENUE TO BE DOWN TO 38 BILLION MR STEVENS EXPECTS DIGITAL TO STAY IN THE BLACK AND BE PROFITABLE IN EVERY QUARTER OF FISCAL 1994 HEWLETTPACKARD INC WHOSE FISCAL THIRD QUARTER ENDS JULY 31 IS LIKELY TO CONTINUE TO REPORT ROBUST GROWTH BUT EVEN HP HAS RECENTLY DISAPPOINTED INVESTORS LAST MONTH IT SAID THAT THE WEAKNESS IN EUROPEAN HAD LED TO ORDER GROWTH SLOWING TO LESS THAN 20 FROM 25 IN THE PREVIOUS QUARTER FORESHADOWING A POSSIBLE SEQUENTIAL DECLINE IN SALES STILL MR WANG OF SMITH BARNEY SAYS IT REMAINS THE ADMIRED EXCEPTION TO THE INDUSTRY MALAISE FOR HP'S FISCAL THIRD QUARTER MR WANG PREDICTS NET WILL RISE 71 TO 130 A SHARE FROM 191 MILLION OR 76 CENTS A SHARE OTHER ANALYSTS' ESTIMATES ARE CLOSER TO 115 A SHARE MR WANG PREDICTS SALES WILL RISE 20 TO 48 BILLION THAT SORT OF SALES GROWTH MAY CATAPAULT IT PAST DIGITAL TO THE NO 2 SPOT IN COMPUTER INDUSTRY REVENUE EXCLUDING THE ROUGHLY 18 OF HP REVENUE THAT COMES FROM MEDICAL PRODUCTS AND INSTRUMENTS IN THE PC BUSINESS WHERE IBM DIGITAL AND HP ARE ALL EXPANDING SALES RAPIDLY GROWTH IS ROBUST BUT PRICE WARS MAKE IT LARGELY PROFITLESS PROSPERITY ON WEDNESDAY DELL COMPUTER INC SAID IT WILL TAKE A 75 MILLION TO 85 MILLION CHARGE PARTLY RELATED TO INVENTORY WRITEDOWNS IN EUROPE THOUGH OVERALL SALES ROSE MORE THAN 55 TO 710 MILLION OR MORE APPLE COMPUTER INC HAD A LOSS OF 1883 MILLION OR 163 A SHARE IN ITS FISCAL THIRD QUARTER AFTER A 1989 MILLION AFTERTAX CHARGE FOR A RESTRUCTURING AND OTHER COSTCUTTING EFFORTS AIMED AT RESTORING GROWTH IN ITS PERSONALCOMPUTER BUSINESS THE LOSS FOR THE PERIOD ENDED JUNE 25 COMPARED WITH NET OF 1317 MILLION OR 107 A SHARE A YEAR EARLIER SALES ROSE 7 TO 186 BILLION FROM 174 BILLION APPLE PLANS TO DISMISS ABOUT 2500 OF ITS 16000 EMPLOYEES WORLDWIDE OVER THE NEXT YEAR TO REVIVE ITS EARNINGS AMID A FIERCE AND PROTRACTED PRICE WAR APPLE IS ABOUT TO GO THROUGH A MAJOR TRANSITION IN ITS MARGIN STRUCTURE THERE'S SIGNIFICANT DOWNSIDE RISK SAYS EUGENE GLAZER AN ANALYST WITH DEAN WITTER COMPAQ COMPUTER INC WHICH HAS REMADE ITSELF FROM A HIGHPRICED PC MAKER TO A PRICE LEADER OVER THE PAST 15 MONTHS IS AMONG THE FEW DESKTOP COMPUTER MAKERS DOING WELL COMPAQ HAS THE BEST MOMENTUM OF ANY COMPANY AND IT'S GAINING BIG MARKET SHARE AT THE EXPENSE OF THE NONAME CLONES SAYS MR GLAZER HE FORESEES NET INCOME TRIPLING TO 110 A SHARE FROM 29 MILLION OR 35 CENTS A SHARE HE EXPECTS SALES TO NEARLY DOUBLE TO 16 BILLION FROM 827 MILLION A YEAR EARLIER 9307160063 930716 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 3/8 HIGH 3 1/16 LOW 3 1/8 NEAR CLOSING BID 3 1/4 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 307 30 TO 59 DAYS 309 60 TO 89 DAYS 312 90 TO 119 DAYS 315 120 TO 149 DAYS 316 150 TO 179 DAYS 325 180 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 315 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 263 TWO MONTHS 268 THREE MONTHS 288 SIX MONTHS 307 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 330 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 306 60 DAYS 307 90 DAYS 311 120 DAYS 314 150 DAYS 320 180 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 690 60 DAYS 697 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 683 60 DAYS 693 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 9307160062 930716 PRICE SOUGHT CARTER HAWLEY DATA MEMO SAYS BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL MUTUAL FUND MANAGER MICHAEL PRICE PRESSED A MEMBER OF THE CARTER HAWLEY HALE STORES INC CREDITORS COMMITTEE TO PASS HIM NONPUBLIC INFORMATION ABOUT THE RETAILER'S EFFORTS TO EMERGE FROM BANKRUPTCY ACCORDING TO A MEMO FROM THE COMMITTEE MEMBER FILED AS EVIDENCE IN A CASE IN DELAWARE CHANCERY COURT MICHAEL LEDERMAN A TOP SUNBEAMOSTER CO EXECUTIVE WHO WAS A MEMBER OF CARTER HAWLEY'S CREDITORS COMMITTEE WROTE IN A 1991 MEMO THAT MR PRICE CALLED AND PRESSURED HIM REPEATEDLY FOR CONFIDENTIAL INFORMATION DURING A SENSITIVE POINT IN THE NEGOTIATIONS BETWEEN CREDITORS AND INVESTOR SAMUEL ZELL WHO HAD JUST MADE A TENDER OFFER FOR THE RETAILER THE MEMO SAID THAT MR PRICE WHO HAD BOUGHT MILLIONS OF DOLLARS OF CARTER HAWLEY'S DISTRESSED BONDS IN 1991 WAS INTERESTED IN KNOWING WHETHER MR ZELL AND CREDITORS WOULD COME TO AN AGREEMENTTHE PRIME FACTOR IN DETERMINING WHETHER THE TENDER OFFER WOULD SUCCEED AND WHETHER THE BONDS WOULD RISE OR FALL IN THE MARKET ANDREW BOGEN AN ATTORNEY WORKING AT THE TIME AS COUNSEL TO THE CREDITORS COMMITTEE SAID IN AN INTERVIEW THAT MEMBERS OF THE COMMITTEE WERE SUBJECT TO A CONFIDENTIALITY AGREEMENT GOVERNING INFORMATION ABOUT CARTER HAWLEY HE SAID THAT IT'S A GRAY AREA OF FEDERAL SECURITIES LAWS WHETHER THE STATUS OF THE NEGOTIATIONS BETWEEN MR ZELL AND THE CREDITORS COMMITTEE CONSTITUTES INSIDER INFORMATION THAT MAY NOT BE SHARED WITH PEOPLE OUTSIDE THE COMPANY IN HIS MEMO DATED SEPT 25 1991 MR LEDERMAN SAID THAT MR PRICE TOLD HIM THAT DAY I KNOW YOU CAN TALK BECAUSE MR LEDERMAN'S SUPERIOR WAS AT A LUNCH THAT MR PRICE HAD ARRANGED THE MEMO CONTINUED QUOTING MR PRICE SO TELL ME THE REAL SCOOP AND I'LL TELL YOU WHAT TO DO SO WE CAN GET THIS DONE THE MEMO WAS FILED IN THE DELAWARE COURT AS PART OF A BITTER SUIT THAT PITS MR PRICE AND HIS FELLOW INVESTORS IN SUNBEAMOSTER AGAINST SUNBEAM'S OUSTED CHAIRMAN PAUL KAZARIAN ALTHOUGH MR LEDERMAN IS NOW ALLIED WITH MR PRICE IN THE BATTLE HIS MEMO WAS WRITTEN WHEN HE AND MR KAZARIAN WERE PARTNERS RUNNING SUNBEAM MR KAZARIAN WAS THE PERSON AT LUNCH THAT MR LEDERMAN QUOTED MR PRICE AS REFERRING TO IN THE MEMO MR PRICE WHO OWNS 30 OF SUNBEAM THROUGH A PARTNERSHIP THAT CONTROLS THE COMPANY DIDN'T RETURN TELEPHONE CALLS YESTERDAY AND HIS ATTORNEY DECLINED TO COMMENT ON THE MEMO MR PRICE MANAGES THE 5 BILLION MUTUAL SERIES FUNDS WHICH HAVE HAD OUTSTANDING INVESTMENT PERFORMANCE IN RECENT YEARS MR LEDERMAN WHO IS NOW ON LEAVE AS SUNBEAM'S GENERAL COUNSEL ALSO DECLINED TO COMMENT CARTER HAWLEY HALE STORES A LOS ANGELESBASED DEPARTMENT STORE CHAIN FILED FOR BANKRUPTCYLAW PROTECTION FROM CREDITORS IN FEBRUARY 1991 LEAVING TRADE CREDITORS INCLUDING SUNBEAM WITH UNPAID BILLS SOON AFTERWARD MR ZELL A CHICAGO INVESTOR WHO SPECIALIZES IN DISTRESSED COMPANIES EXPRESSED INTEREST IN BUYING UP THE RETAILER'S DEBT CONVERTING IT INTO A CONTROLLING STOCK POSITION AND THEN TAKING CARTER HAWLEY OUT OF BANKRUPTCY ON JULY 24 1991 MR ZELL'S ZELL/CHILMARK FUND LP MADE A TENDER OFFER OF 40 CENTS PER EVERY DOLLAR OF THE RETAILER'S BONDS AND SUPPLIER CLAIMS AN OFFER THAT THE CREDITORS COMMITTEE BALKED AT IN EARLY OCTOBER MR ZELL RAISED THE BID TO 47 CENTS AND COMPLETED THE TENDER OFFER SHORTLY AFTER THE TENDER OFFER WAS MADE MR LEDERMAN SAID IN HIS MEMO MR PRICE MADE HIS FIRST PHONE CALL REMINDING MR LEDERMAN THAT HE'S PAYING MY SALARY AT SUNBEAMOSTER AND SAID THAT HE FOUND IT AMUSING THAT I WAS ALSO WORKING FOR HIM AS A MEMBER OF CARTER HAWLEY'S CREDITORS COMMITTEE BY THAT TIME IN LATE JULY MR PRICE HAD BOUGHT SOME OF CARTER HAWLEY'S DISTRESSED BONDS ON THE OPEN MARKET GENERALLY FOR ABOUT 30 CENTS ON THE DOLLAR AND WAS ONE OF ITS LARGEST UNSECURED CREDITORS HE THEN TOLD MR LEDERMAN THAT HE WANTED THE TENDER OFFER TO GO THROUGH THE MEMO SAID MR LEDERMAN WROTE THAT HE BACKED AWAY FROM THE DISCUSSION I TOLD HIM THAT AS A COMMITTEE MEMBER I HELD A FIDUCIARY DUTY TO ALL UNSECURED CREDITORS AND THAT MR PRICE WHO WAS ACTIVELY TRADING CARTER HAWLEY SECURITIES ON A DAILY BASIS COULD NOT RECEIVE INSIDE INFORMATION FROM ME HE QUICKLY AGREED BUT ADDED THAT HE HOPED HE WAS CLEAR ABOUT HIS WISHES AFTER A FEW DAYS MR LEDERMAN WROTE HE BEGAN RECEIVING CALLS FROM MR PRICE AND SEVERAL OF HIS DEPUTIES INQUIRING AS TO THE STATUS OF THE CREDITORS COMMITTEE'S CONSIDERATION OF THE TENDER OFFER I GAVE GENERAL ANSWERS SUCH AS WE'RE MARCHING ALONG' I COULD TELL BY MR PRICE'S VOICE THAT MY ANSWERS ANNOYED HIM IN THE MEMO MR LEDERMAN SAID THAT BECAUSE OF THE EMERGENCE OF MR PRICE AS A LARGE UNSECURED CREDITOR I HAVE DECIDED TO EFFECTIVELY TERMINATE FURTHER ACTIVE INVOLVEMENT WITH A SUBCOMMITTEE OF THE OVERALL CREDITORS COMMITTEE THAT WAS DIRECTLY INVOLVED IN THE NEGOTIATIONS WITH MR ZELL IT ISN'T CLEAR FROM INTERVIEWS WITH OTHER COMMITTEE MEMBERS WHETHER MR LEDERMAN'S ROLE CHANGED AFTERWARD THE MEMO WHICH MR LEDERMAN WROTE FOR HIS OWN FILES WAS PRODUCED IN THE EVIDENCEDISCOVERY PROCESS OF A COURT CASE IN WHICH MR KAZARIAN IS ATTEMPTING TO REGAIN HIS POSITIONS AT SUNBEAM HE WAS OUSTED AS CHAIRMAN AND A DIRECTOR THIS YEAR PART OF HIS CLAIM IS THAT MR PRICE AND OTHER INVESTORS FORCED HIM OUT BECAUSE HE RESISTED THEIR OVERTURES TO TAKE ACTIONS THAT WOULD AID THEIR INVESTMENTS MR PRICE HAS DENIED THESE CHARGES 9307160061 930716 WHO'S NEWS EMPIRE BLUE CROSS FIRES FINANCE CHIEF OVER BOOKKEEPING NEW YORK EMPIRE BLUE CROSS & BLUE SHIELD SAID IT TERMINATED JERRY WEISSMAN THE INSURANCE COMPANY'S CHIEF FINANCIAL OFFICER MR WEISSMAN WHO HAD BEEN WITH THE COMPANY FOR ABOUT 20 YEARS ACCORDING TO A COMPANY SPOKESMAN WAS SUSPENDED ON JUNE 16 AND PLACED ON LEAVE WITHOUT PAY JUNE 23 PHILIP BRIGGS EMPIRE'S NEWLY APPOINTED CHAIRMAN SAID MR WEISSMAN WAS TERMINATED AS PART OF THE COMPANY'S CONTINUING EFFORT TO RESTORE AND MAINTAIN PUBLIC CONFIDENCE IN THE COMPANY DURING THE PAST SEVERAL MONTHS THE INSURER HAS COME UNDER FIRE FOR ALLEGED IMPROPER BOOKKEEPING ACCORDING TO EMPIRE THE BOARD'S SPECIAL COUNSEL REPORTED THAT MR WEISSMAN TOLD EMPLOYEES TO DESTROY FINANCIAL RECORDS RELATED TO THE ALLEGATIONS THE COUNSEL ADDED THAT MR WEISSMAN TOLD EMPLOYEES TO FORMULATE RESPONSES TO AN EXTERNAL INQUIRY BY ARTHUR ANDERSEN & CO THAT WOULD CONCEAL THE TRUE FACTS EMPIRE SAID THAT MR WEISSMAN DENIED PARTICIPATING IN ANY ATTEMPT TO CONCEAL FACTS FROM THE EXTERNAL AUDITORS MR BRIGGS ALSO SAID THE COMPANY TERMINATED THE EMPLOYMENT OF DAVID SANDERS EMPIRE'S CHIEF ACTUARY AND SHARON SCHMERZLER DIRECTOR STATISTICAL ANALYSIS ACTUARIAL DIVISION BOTH MR SANDERS AND MS SCHMERZLER HAVE ADMITTED TO PARTICIPATING OR ACQUIESCING IN THE DESTRUCTION OF DOCUMENTS EMPIRE SAID MESSRS WEISSMAN AND SANDERS AND MS SCHMERZLER COULDN'T BE REACHED FOR COMMENT 9307160060 930716 JAPANESE AGENCY SAYS FIRMS' INSOLVENCIES DECLINED 26 IN JUNE SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE CORPORATE INSOLVENCIES IN JUNE FELL 26 FROM THE YEAREARLIER MONTH TO 1140 CASES AFTER DROPPING IN MAY FOR THE FIRST TIME IN 32 MONTHS PRIVATE CREDIT RESEARCH AGENCY TEIKOKU DATA BANK LTD REPORTED BUT DEBTS LEFT BEHIND BY INSOLVENT COMPANIES IN JUNE CONTINUED TO SURGE AS THEY ROSE 24 FROM THE YEAR EARLIER TO 46455 BILLION YEN 433 BILLION ON A SEMIANNUAL BASIS INSOLVENCIES WERE UP 37 TO 6820 CASES FROM 6579 CASES IN THE FIRST SIX MONTHS OF 1992 THE AGENCY SAID THE AMOUNT OF DEBT LEFT BEHIND FELL 11 IN THE FIRST HALF OF 1993 TO 2923 TRILLION YEN THE LATEST SIXMONTH DATA SHOW INSOLVENCIES FELL 10 FROM 7588 CASES IN THE PRIOR HALF ENDED DEC 31 1992 DEBTS WERE DOWN 32 FROM 4274 TRILLION YEN IN THE PRIOR SIX MONTHS ALTHOUGH CORPORATE INSOLVENCIES HAVE NOW DECREASED FROM YEAREARLIER LEVELS FOR TWO MONTHS IN A ROW TEIKOKU DATA BANK SAID IT'S TOO EARLY TO SAY THE RISE IN FAILURES IS OVER THE AGENCY IS WARY OF MAKING A PREMATURE JUDGMENT BECAUSE RECESSIONTYPE FAILURES SUCH AS THOSE RESULTING FROM WEAK SALES OR EXPORTS OR ACCUMULATION OF BAD DEBTS IN JUNE STILL COMPRISED 58 OF TOTAL INSOLVENCIES WHILE THAT RATIO IS SLIGHTLY EASIER THAN THE 61 RATIO IN MAY IT REMAINS AT A HIGH LEVEL THE AGENCY SAID 9307160059 930716 MANY APPAREL COMPANIES WILL REPORT LOWER 2NDPERIOD RESULTS SAY ANALYSTS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH RETAIL DEMAND STILL SLUGGISH APPAREL MAKERS SAW THEIR SECONDQUARTER PROFITS ERODE AS STORES PUSHED MARKDOWNS AND PULLED BACK ON WHOLESALE ORDERS OF ALL TYPES OF APPAREL AS A RESULT WALL STREET ANALYSTS EXPECT MANY APPAREL MANUFACTURERS TO REPORT LOWER SECONDQUARTER EARNINGS COMPARED WITH THE YEAREARLIER PERIOD AFTER MONTHS OF GEARING UP THEIR FACTORIES TO TURN OUT FASTSELLING INEXPENSIVE TSHIRTS AND SWEATS BASIC APPAREL MAKERS HAVE NOW FILLED THE RETAIL PIPELINE TO THE POINT THAT STORES HAVE BEEN PLACING SMALLER MAINLY FILLIN REORDERS IN THE SECOND QUARTER DEPARTMENT STORES SQUEEZED FASHION APPAREL MAKERS FOR ALLOWANCES FOR MARKDOWNS ON SPRING MERCHANDISE WHICH SHOPPERS BOUGHT CONSERVATIVELY WITH CONSUMER CONFIDENCE STILL SHAKY ANALYSTS SAY THAT APPAREL MAKERS HAVE BEEN FORCED TO BECOME MORE ADEPT AT MANAGING THEIR INVENTORIES AND TRIMMING THEIR INTERNAL COSTS INSTEAD OF BANKING ON RETAIL GROWTH TO SUSTAIN PROFITS THE COMPANIES THAT HAVE BEEN ABLE TO FACILITATE REORDERS AND CUTBACKS HAVE BEEN THE ONES THAT HAVE BEEN FARING THE BEST SAYS DEBORAH BRONSTON AN APPAREL ANALYST AT PRUDENTIAL SECURITIES INC SHE EXPECTS THAT ONLY FOUR OF THE 11 PUBLICLY TRADED APPAREL COMPANIES THAT SHE FOLLOWS WILL REPORT HIGHER SECONDQUARTER EARNINGS IN THE FASHION SECTOR ANALYSTS EXPECT ABOUT A 20 SECONDQUARTER EARNINGS DROP AT LIZ CLAIBORNE INC WHERE GREATER RETAIL MARKDOWNS AND STARTUP COSTS IN ITS RUSS TOGS DIVISION HAVE TRIMMED PROFITS HEAVIER RETAIL PROMOTIONS ALSO HURT CHILDRENSWEAR MAKER OSHKOSH B'GOSH INC WHICH ANALYSTS PREDICT WILL REPORT LOWER EARNINGS AND BERNARD CHAUS INC A MAKER OF MODERATELY PRICED WOMEN'S APPAREL WHICH IS EXPECTED TO POST A SECONDQUARTER LOSS COMPARED WITH A PROFIT IN THE 1992 PERIOD BUT PHILLIPSVAN HEUSEN CORP AND JONES APPAREL GROUP INC TWO FASHION APPAREL COMPANIES THAT OPERATE BIG RETAIL FACTORY OUTLET DIVISIONS WILL RECORD MODERATELY HIGHER SECONDQUARTER PROFITS ACCORDING TO ANALYSTS ANOTHER COMPANY THAT IS EXPECTED TO HAVE DECLINING SECONDQUARTER PROFIT IS RUSSELL CORP A MAKER OF TSHIRTS AND BASIC KNITWEAR DEMAND FOR BASIC APPAREL HAS SIMMERED DOWN BECAUSE PEOPLE'S CLOSETS ARE NOW FULL OF THE STUFF SAYS JAY MELTZER AN APPAREL ANALYST AT GOLDMAN SACHS & CO GROWTH HENCEFORTH IN THIS SECTOR WILL BE MODERATE UNLIKE EXPECTATIONS FOR RUSSELL ANALYSTS ARE FORECASTING HIGHER PROFIT AT FRUIT OF THE LOOM INC AND VF CORP AT VF STRONG JEANSWEAR SALES HELPED OFFSET WEAKER FLEECEWEAR BUSINESS IN THE THIRD QUARTER APPAREL MAKERS SHOULD BENEFIT FROM RETAILERS' HOPES FOR A HEALTHIER BACKTOSCHOOL AND FALL FASHION SEASON ANALYSTS SAY WE'RE SEEING THE EARLY SIGNS OF COMPANIES WINDING OUT OF THE GLUT IN INVENTORY AND WE ARE OPTIMISTIC THAT IMPROVING ORDER TRENDS WILL CONTINUE MODESTLY THROUGHOUT THE REST OF THE YEAR SAYS MS BRONSTON BUT RETAILERS HAVING FELT THE SHIFT IN CONSUMER SPENDING AWAY FROM CLOTHES THIS YEAR ARE PLACING THEIR APPAREL ORDERS CAUTIOUSLY BRENDA GALL AN ANALYST AT MERRILL LYNCH & CO SAYS WHEN INTEREST RATES ARE LOW PEOPLE BUY CARS AND THINGS FOR THE HOME AND THEY DON'T HAVE THE EXTRA DISPOSABLE INCOME TO SPEND AS MUCH ON APPAREL 9307160058 930716 TELEDYNE PLANS BROAD CHANGES IN ITS STRUCTURE AEROSPACE CONGLOMERATE WILL CONSOLIDATE UNITS ELIMINATE 1200 JOBS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TELEDYNE INC ANNOUNCED A SWEEPING REALIGNMENT OF ITS CORPORATE STRUCTURE SHRINKING ITS NUMBER OF OPERATING COMPANIES TO 21 FROM 65 AND ELIMINATING 1200 MANAGEMENT AND SUPPORT JOBS THE AEROSPACE AND MANUFACTURING CONGLOMERATE WHICH MAKES PRODUCTS RANGING FROM SHOWER HEADS TO MISSILE PARTS ALSO REPORTED SECONDQUARTER NET INCOME OF 81 MILLION OR 15 CENTS A SHARE UP 94 FROM 74 MILLION OR 14 CENTS A SHARE A YEAR EARLIER SALES DROPPED 16 TO 6244 MILLION FROM 7448 MILLION BECAUSE OF DIVESTITURES RESERVES HAD ALREADY BEEN SET ASIDE TO COVER MUCH OF THE 26 MILLION COST OF THE REALIGNMENT ALTHOUGH THE SECONDQUARTER RESULTS INCLUDED A 5 MILLION CHARGE TO COVER REMAINING COSTS TELEDYNE SAID THE REALIGNMENT MOVES INCLUDING REMOVING THE GROUPEXECUTIVE LAYER OF CORPORATE MANAGEMENT WILL REDUCE ANNUAL OVERHEAD AND ADMINISTRATIVE COSTS BY 70 MILLION THE WORK FORCE CUTS WILL SHAVE ABOUT 5 OF TELEDYNE'S 23800EMPLOYEE PAYROLL WITH MOST OF THE JOB CUTS COMING IN THE NEXT SIX WEEKS WHEN THE REALIGNMENT IS COMPLETE AVERAGE SALES FOR EACH OPERATING COMPANY WILL JUMP TO 120 MILLION FROM 40 MILLION TELEDYNE SAID THE MAIN INCENTIVE HERE IS TO GET THE COMPANY STRUCTURED IN A WAY THAT WE THINK IS MORE ROBUST AND STRONGER FOR THE MARKETS THAT WE'RE DEALING IN SAID DONALD B RICE PRESIDENT AND CHIEF OPERATING OFFICER MUCH OF THAT WILL BE ACCOMPLISHED BY GROUPING PRODUCT LINES WITH SIMILAR CUSTOMERS OR RELATED TECHNOLOGIES HE SAID TELEDYNE IS ELIMINATING SOME DUPLICATE RESOURCES AND THE OPERATING COMPANIES WILL BECOME MORE FLEXIBLE IN DEPLOYING THEIR RESOURCES HE ADDED THE TELEDYNE RESTRUCTURING APPEARS TO BE A MAJOR DEPARTURE FROM A PHILOSOPHY THAT GUIDED THE COMPANY FOR MORE THAN 20 YEARS AS IT EVOLVED INTO A HUGE SYSTEM OF SMALL COMPANIES THAT WERE ENCOURAGED TO PERFORM MUCH LIKE ENTREPRENEURIAL ENTITIES WHILE THAT SYSTEM HAS SUCCEEDED IN SOME WAYS IT ALSO SEEMS AT TIMES TO HAVE PRODUCED TOO LITTLE ACCOUNTABILITY FOR DIVISIONS SUCH AS TELEDYNE RELAYS WHICH HAS BEEN HURT BY LEGAL PROBLEMS THE UNIT WAS BANNED FOR A YEAR FROM GOVERNMENT CONTRACTS AFTER IT PLEADED GUILTY LAST YEAR TO MAKING FALSE STATEMENTS ABOUT THE TESTING OF ELECTRONIC SWITCHES USED IN MISSILES AND SPACE LAUNCH VEHICLES MR RICE SAID THE COMPANY WILL STILL HAVE AN ENTREPRENEURIAL FLAVOR BUT IT WILL BE ORGANIZED MORE APPROPRIATELY FOR THE TIMES AMONG OTHER BENEFITS HE SAID THE GROUPS WILL BE BETTER ABLE TO SHARE IDEAS AS THEY SEEK COMMERCIAL USES FOR DEFENSERELATED TECHNOLOGIES EVEN UNDER THE NEW GROUPINGS HE SAID THE LARGEST COMPANY WILL HAVE ONLY 300 MILLION IN SALES THERE AREN'T ANY BILLIONDOLLAR BEHEMOTHS IN HERE AT ALL SEPARATELY A US DISTRICT COURT JUDGE IN ROCHESTER NY REDUCED TO 11 MILLION WHAT HAD BEEN A 1073 MILLION JURY AWARD AGAINST TELEDYNE'S CONTINENTAL MOTORS DIVISION THE AWARD HAD BEEN MADE TO RELATIVES OF A FAMILY KILLED WHEN THEIR PLANE POWERED BY A TELEDYNE ENGINE CRASHED IN 1986 TELEDYNE OFFICIALS MAINTAINED THAT THE COMPANY SHOULD BEAR NO LIABILITY THE COMPANY NOTED THAT THE NATIONAL TRANSPORTATION SAFETY BOARD DID NOT BLAME THE ACCIDENT ON AN ENGINE MALFUNCTION 9307160057 930716 WHAT'S NEWS WORLDWIDE MIDWEST FLOODS SPREAD AND CLINTON PLANNED TO VISIT ST LOUIS TOMORROW THE RELENTLESS FLOODING CLAIMED MORE LAND AS STORMS DRENCHED SOME PARTS OF THE REGION THE PRESIDENT WHO HAS STOPPED IN FLOODSTRICKEN IOWA TWICE IN TWO WEEKS WILL TOUR THE ST LOUIS AREA TOMORROW THE MISSISSIPPI RIVER REACHED A RECORD HEIGHT OF 433 FEET AT ST LOUIS AND WAS EXPECTED TO CREST THERE MONDAY IN DES MOINES IOWA RUNNING WATER WON'T BE RESTORED UNTIL AFTER THE WEEKEND MOST OF THE UP TO EIGHT MILLION ACRES OF CROPS SUBMERGED BY MIDWESTERN FLOODING WILL BE A TOTAL LOSS AN AGRICULTURE DEPARTMENT OFFICIAL SAID NEW RESEARCH PROVIDES EVIDENCE OF A GENETIC PREDISPOSITION TO MALE HOMOSEXUALITY SCIENTISTS SAID THE RESEARCHERS WHO STUDIED FAMILIES WITH HOMOSEXUAL BROTHERS SAID THERE MAY BE AT LEAST ONE GENE THAT IS INHERITED BY A SON FROM HIS MOTHER THAT HELPS DETERMINE WHETHER HE IS HETEROSEXUAL OR HOMOSEXUAL CLINTON IS EXPECTED TO ENDORSE A DON'T ASK DON'T TELL POLICY ON MILITARY RECRUITMENT OF HOMOSEXUALS CHANGING A RULE THAT BARS GAY RECRUITS THE NEW POLICY WOULD BAR THE MILITARY FROM ASKING THE SEXUAL ORIENTATION OF RECRUITS HOMOSEXUAL CONDUCT WOULD REMAIN PROHIBITED SERBS EASED A TWOWEEK FUEL BLOCKADE OF SARAJEVO ALLOWING A HOSPITAL AND BAKERY TO RESUME OPERATIONS BUT LIFE IN THE BOSNIAN CAPITAL REMAINS A DAILY TORTURE A UN OFFICIAL SAID REPUBLICAN SEN LUGAR SAID THE CLINTON ADMINISTRATION SHOULD BYPASS THE UN AND PROVIDE ARMS TO MUSLIM FORCES ISRAEL'S FOREIGN MINISTER WANTS TO DISCUSS A FINAL SETTLEMENT FOR THE OCCUPIED TERRITORIES THAT WOULD INVOLVE JOINT RULE BY THE PALESTINIANS AND JORDAN ISRAELI OFFICIALS SAID IT WASN'T CLEAR WHETHER PERES'S PROPOSAL AIMED AT BREAKING A DEADLOCK IN PEACE TALKS WAS SUPPORTED BY PRIME MINISTER RABIN A WHITE SUPREMACIST PLOT WAS FOILED IN LOS ANGELES THE PLOT INCLUDED PLANS TO BOMB A PROMINENT BLACK CHURCH SPRAY ITS MEMBERS WITH MACHINEGUN FIRE AND KILL BEATING VICTIM RODNEY KING AUTHORITIES SAID EIGHT PEOPLE WERE ARRESTED AND OFFICIALS SAID SOME OF THE SUSPECTS BELONGED TO A GROUP THAT ADVOCATES RACIAL HOLY WAR THE CLINTON ADMINISTRATION IS SENDING AN ENVOY TO ROME IN AN APPARENT ATTEMPT TO DEFUSE A DIPLOMATIC CRISIS BETWEEN ITALY AND THE UN OVER THE MISSION OF UN PEACEKEEPERS IN SOMALIA BUT ITALY'S FOREIGN MINISTER REITERATED HIS COUNTRY'S RESOLVE TO KEEP ITS SOLDIERS IN SOMALIA SAYING A WITHDRAWAL ISN'T JUSTIFIED THE SENATE VOTED TO RETAIN RESTRICTIONS ON POLITICAL ACTIVITIES BY TENS OF THOUSANDS OF US EMPLOYEES ENGAGED IN LAW ENFORCEMENT OR NATIONAL SECURITY THE COMPROMISE AGREEMENT PAVES THE WAY FOR A VOTE TUESDAY TO RELAX MANY OF THE POLITICAL CONSTRAINTS IMPOSED ON THE REST OF THE FEDERAL WORK FORCE BY THE HATCH ACT PASSED IN 1939 NUCLEAR REGULATORS HAVE INVESTIGATED FEWER THAN ONE IN 12 COMPLAINTS OF RETALIATION AGAINST WHISTLEBLOWERS AT ATOMIC PLANTS AN INTERNAL REVIEW FOUND THE REPORT CONCLUDED THAT STRONGER MEASURES MUST BE TAKEN TO PROTECT WORKERS WHO WANT TO DISCLOSE SAFETY CONCERNS SUNDAY'S JAPANESE ELECTIONS ARE LIKELY TO PRODUCE A WEAK GOVERNMENT THAT COULD BE FORCED TO CALL A NEW VOTE WITHIN MONTHS IF NO PARTY RECEIVES A MAJORITY IN PARLIAMENT'S LOWER HOUSE POLITICIANS WILL HAVE TO SPND NEXT WEEK AND PERHAPS LONGER FORMING A COALITION AND CHOOSING A PRIME MINISTER A TOPLEVEL US DELEGATION ARRIVED IN VIETNAM TO ASSESS THAT GOVERNMENT'S COOPERATION IN THE SEARCH FOR MISSING US SERVICEMEN THE 22MEMBER GROUP THE HIGHESTLEVEL AMERICAN DELEGATION TO VISIT HANOI SINCE THE VIETNAM WAR WILL GATHER INFORMATION TO HELP CLINTON DECIDE WHETHER OR NOT TO RENEW AN ECONOMIC EMBARGO GERMAN INVESTIGATORS SEIZED HATE LITERATURE AND A WEAPONS ARSENAL IN RAIDS AGAINST AN OUTLAWED NEONAZI GANG SEPARATELY PROSECUTORS EXAMINED DOCUMENTS THAT COULD UNMASK SOME WESTERN GERMAN POLITICIANS AS FORMER SPIES FOR EAST GERMANY A NIGERIAN JUDGE ADJOURNED UNTIL TODAY A HEARING TO CONSIDER A SUIT SEEKING TO FORCE MILITARY LEADERS TO ANNOUNCE THE RESULTS OF A PRESIDENTIAL VOTE THE SUIT WAS FILED BY THE APPARENT VICTOR MOSHOOD ABIOLA 9307160056 930716 MARKETING & MEDIA COKE NET ROSE 20 IN QUARTER OVERSEAS STRONG BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO SAID SECONDQUARTER EARNINGS CLIMBED 20 AS INTERNATIONAL VOLUME GROWTH PICKED UP PARTICULARLY IN EMERGING MARKETS IN PARTS OF EUROPE ASIA AND THE MIDDLE EAST THE SOFTDRINK COMPANY REPORTED NET INCOME OF 678 MILLION OR 52 CENTS A SHARE UP FROM 565 MILLION OR 43 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 10 TO 390 BILLION FROM 355 BILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS OVERSEAS WHERE COKE GENERATES 80 OF ITS PROFIT VOLUME WAS UP 7 ONE OF THE BRIGHT SPOTS WAS THE NORTHEAST EUROPE AND MIDDLE EAST GROUP WHERE VOLUME WAS UP 25 IN THE PACIFIC RIM VOLUME ROSE 8 WITH CHINA AUSTRALIA AND JAPAN POSTING THE BIGGEST GAINS FOR THE FIRST SIX MONTHS VOLUME IN THAT REGION WAS UP 5 WHAT THE QUARTER SHOWED WAS THE TREMENDOUS IMPORTANCE OF COKE HAVING GEOGRAPHIC DIVERSITY SAID EMANUEL GOLDMAN AN ANALYST AT PAINEWEBBER WHILE WESTERN EUROPE WAS NOT SETTING THE WORLD ON FIRE EASTERN EUROPE WAS DOMESTICALLY COKE'S TOTAL SECONDQUARTER VOLUME INCREASED 6 WHICH THE COMPANY SAID WAS THE LARGEST INCREASE IN NINE QUARTERS THE BOTTLE AND CAN SEGMENT GREW 3 WHILE THE FOUNTAIN BUSINESS JUMPED 13 ANALYSTS ATTRIBUTED THE LARGE INCREASE TO THE GROWING POPULARITY OF VALUE MEALS SOLD AT VARIOUS FASTFOOD RESTAURANTS WHICH INCLUDE A SOFT DRINK SALES OF NEW PRODUCTS SUCH AS MINUTE MAID JUICES TO GO POWERADE A SPORTS DRINK AND NESTEA ICED TEA ALSO CONTRIBUTED TO COKE'S DOMESTIC VOLUME GAINS THE COMPANY SAID EVEN RELATIVE TO THEIR AMERICAN BUSINESS THESE PRODUCTS ARE VERY SMALL BUT IT'S A RAPIDLY GROWING AREA OF THE NONCOLA PORTION OF THE BUSINESS SAID ROY BURRY A KIDDER PEABODY & CO ANALYST A 15 VOLUME INCREASE AT COCACOLA FOODS A MAKER OF JUICE PRODUCTS REFLECTED AGGRESSIVE PRICING AND BEEFEDUP MARKETING THE COMPANY SAID DURING THE QUARTER COKE SOLD ITS INTERESTS IN A BOTTLING OPERATION IN THE NETHERLANDS TO COCACOLA ENTERPRISES RESULTING IN AN AFTERTAX GAIN OF 11 MILION OR ABOUT ONE CENT A SHARE COKE ALSO COMPLETED A PREVIOUSLY ANNOUNCED INVESTMENT TO ACQUIRE A 30 STAKE VALUED AT 195 MILLION IN A JOINT VENTURE WITH FOMENTO ECONOMICO MEXICANO A MEXICAN BEVERAGE COMPANY WHICH OWNS A BIG COKE FRANCHISE COKE ALSO REPURCHASED APPROXIMATELY SIX MILLION OF ITS SHARES IN THE SECOND QUARTER BRINGING THE TOTAL NUMBER OF SHARES PURCHASED SO FAR THIS YEAR TO EIGHT MILLION FOR THE SIX MONTHS COKE REPORTED THAT NET INCOME JUMPED 54 TO 113 BILLION OR 87 CENTS A SHARE FROM 732 MILLION OR 55 CENTS A SHARE A YEAR EARLIER THE 1992 PERIOD INCLUDED CHARGES TOTALING 219 MILLION OR 17 CENTS A SHARE REVENUE ROSE 10 TO 696 BILLION FROM 632 BILLION ANALYSTS EXPECT ANOTHER SOLID PERFORMANCE IN THE THIRD QUARTER BECAUSE COKE'S VOLUMES WERE DOWN SIGNIFICANTLY LAST YEAR IN BRAZIL AND JAPAN TWO IMPORTANT MARKETS COMPARISONS WILL BE MORE FAVORABLE THIS YEAR SAID MICHAEL BRANCA A NATWEST SECURITIES CORP ANALYST IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COKE CLOSED AT 4450 UP 125 CENTS 9307160055 930716 WHAT'S NEWS BUSINESS AND FINANCE PROCTER & GAMBLE PLANS TO SLASH 13000 JOBS OR 12 OF ITS WORK FORCE AND CLOSE 30 PLANTS REFLECTING COMPETITION FROM LOWERPRICED AND PRIVATELABEL RIVALS THE COSTCUTTING MOVES P&G'S LARGEST EVER WILL RESULT IN A 15 BILLION CHARGE IN FISCAL 1993 P&G PREDICTED A LOSS FOR THE YEAR UNITED AIRLINES' THREE MAJOR UNIONS SAID THEY WANT A MAJORITY STAKE IN THE GIANT CARRIER IN RETURN FOR CONCESSIONS THAT WOULD HELP THE UAL UNIT BECOME STRONGER AND MORE COMPETITIVE THE US ATTORNEY IN DETROIT IS INVESTIGATING ALLEGATIONS THAT EXGM PURCHASING BOSS J IGNACIO LOPEZ DE ARRIORTUA AND OTHERS TOOK GM SECRETS WHEN THEY JOINED VW MEANWHILE IN A GERMAN COURT TWO GM WORKERS CONTRADICTED LOPEZ'S DENIALS THAT HE RECEIVED SECRET PLANS BEFORE HE LEFT APPLE COMPUTER POSTED SURPRISINGLY WEAK OPERATING PROFIT AND AN UNEXPECTEDLY BIG ONETIME RESTRUCTURING CHARGE INDICATING IT MAY BE UNDER GREATER STRESS THAN MOST THOUGHT APPLE AND IBM APPOINTED AN IBM VETERAN TO HEAD THEIR MULTIMEDIA SOFTWARE VENTURE AFTER THE PREVIOUS CHIEF FAILED TO WIN BROAD INDUSTRY SUPPORT THE WHITE HOUSE SAID IT EXPECTS THE DEFICIT FOR FISCAL 1993 TO BE ABOUT 285 BILLION LESS THAN THE 322 BILLION PROJECTED IN APRIL BUT ADMINISTRATION OFFICIALS WARNED THAT THE DEFICIT OUTLOOK WON'T IMPROVE UNLESS CONGRESS ACTS PPG INDUSTRIES NAMED JERRY DEMPSEY CHAIRMAN PICKING AN OUTSIDER FOR THE FIRST TIME IN THE GLASS CHEMICAL AND PAINT MAKER'S HISTORY INVENTORIES ROSE IN MAY FOR THE EIGHTH CONSECUTIVE MONTH CLIMBING 02 BUT ECONOMISTS DON'T SEEM TO BE WORRIED ABOUT THE STEADY INCREASE US SURGICAL POSTED A WIDERTHANEXPECTED LOSS FOR THE SECOND QUARTER SENDING ITS SHARES FALLING 13 THE SURGICAL STAPLE AND EQUIPMENT COMPANY SAID THE RESULTS REFLECT HIGHERTHANANTICIPATED HOSPITAL INVENTORIES TELEDYNE ANNOUNCED A BROAD REALIGNMENT OF ITS CORPORATE STRUCTURE SHRINKING ITS NUMBER OF OPERATING UNITS TO 21 FROM 65 AND ELIMINATING 1200 MANAGEMENT AND SUPPORT JOBS FUND MANAGER MICHAEL PRICE PRESSED A CARTER HAWLEY HALE CREDITOR COMMITTEE MEMBER FOR NONPUBLIC INFORMATION ABOUT CARTER'S EFFORTS TO EMERGE FROM BANKRUPTCY ACCORDING TO A MEMO THAT IS NOW COURT EVIDENCE CITIBANK HIRED BOB MICHAELSON AS CHIEF INVESTMENT OFFICER OF ITS 68 BILLION GLOBAL ASSETMANAGEMENT ARM PICTURETEL PLANS TO UNVEIL EQUIPMENT TO TURN A PERSONAL COMPUTER INTO A PICTURE PHONE THE SYSTEM WOULD BE PRICED ABOUT 1000 LESS THAN A RIVAL PRODUCT TO BE RELEASED BY AT&T JAPAN'S TRADE SURPLUS ROSE 11 IN JUNE AMID FEUDING BETWEEN TOKYO AND WASHINGTON OVER INCREASING JAPAN'S IMPORTS OF FOREIGN GOODS ENRON'S EARNINGS ROSE 21 IN THE SECOND QUARTER BOOSTED BY IMPROVED RESULTS FROM THE COMPANY'S PIPELINE AND GAS PRODUCTION BUSINESSES THE NATION'S LARGEST NATURALGAS COMPANY ALSO DECLARED A 2FOR1 STOCK SPLIT BONDS LEHMAN BROTHERS TREASURY INDEX 536237 UP 643 COMMODITIES OIL 1767 A BARREL UP 18 CENTS DOW JONES FUTURES INDEX 12625 UP 056 SPOT INDEX 12271 OFF 037 DOLLAR 10805 YEN UP 098 17205 MARKS UP 00055 9307160054 930716 MULTIMEDIA KALEIDA SHIFTS TOP EXECUTIVES AMID DELAYS BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTAIN VIEW CALIF THE AMBITIOUS AIM OF KALEIDA LABS INC THE BALLYHOOED JOINT VENTURE OF APPLE COMPUTER INC AND INTERNATIONAL BUSINESS MACHINES CORP IS TO GIVE CONSUMERS SOFTWARE THAT WILL ALLOW THEM TO PLAY ANY KIND OF MULTIMEDIA PROGRAM ON ANY KIND OF MULTIMEDIA MACHINE IT LOOKS LIKE THOSE CONSUMERS ARE GOING TO HAVE TO WAIT LONGER THAN EXPECTED THE PROMISED SOFTWARE IS ALREADY AT LEAST THREE MONTHS BEHIND SCHEDULE AND A SUDDEN MANAGEMENT CHANGE MADE YESTERDAY INDICATES PROGRESS MAY BE MORE DISAPPOINTING THAN KALEIDA HAS PUBLICLY INDICATED APPLE AND IBM REPLACED KALEIDA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER NATHANIEL GOLDHABER A FLAMBOYANT ENTREPRENEUR WHO WAS HIRED BARELY A YEAR AGO WITH IBM VETERAN MICHAEL BRAUN ACCORDING TO KALEIDA EXECUTIVES THE TWO COMPANIES TURNED TO AN INSIDER BECAUSE MR GOLDHABER FAILED TO WIN BROAD INDUSTRY SUPPORT FOR KALEIDA'S PIONEERING MULTIMEDIA SOFTWARE AND HIS HANDSOFF MANAGEMENT STYLE LED TO PRODUCT DELAYS APPLE AND IBM DIDN'T COMMENT ON THE REPORTS OF INTERNAL TURMOIL BUT SAID MR GOLDHABER'S CONTRACT HAD EXPIRED MR GOLDHABER WILL REMAIN AS COCHAIRMAN OF KALEIDA'S BOARD MULTIMEDIA TECHNOLOGY COMBINES TEXT SOUND AND VIDEO MATERIAL FOR USE WITH COMPUTERS OR TELEVISION INCREASINGLY WITH THE AID OF DIGITIZED DISK PLAYERS KALEIDA'S AIM IS TO DEVELOP AND WIDELY LICENSE A UNIVERSAL LANGUAGE SO ANY COMPUTER TV OR DISK PLAYER CAN RUN ANY MULTIMEDIA SOFTWARE APPLICATION THE PROJECT IS CONSIDERED ESSENTIAL IN OVERCOMING CONSUMER RELUCTANCE TO PURCHASE MULTIMEDIA COMPUTERS AND CDROM DEVICES UNTIL A CLEAR INDUSTRY STANDARD HAS EMERGED AND COMPATIBLE SOFTWARE IS WIDELY AVAILABLE JUST SUCH CONFUSION SLOWED SALES OF VIDEOCASSETTE RECORDERS UNTIL THE VHS FORMAT EMERGED AS A STANDARD FOR THAT INDUSTRY MR BRAUN 43 YEARS OLD IS A LONGSTANDING PROPONENT FOR MULTIMEDIA AT IBM AND SERVED AS VICE PRESIDENT AND MANAGING PARTNER OF ITS RECENTLY FORMED FIREWORKS PARTNERS UNIT ANALYSTS SAY HE IS A SEASONED MANAGER WHO WILL WORK MORE CLOSELY WITH APPLE AND IBM AND PROVIDE TIGHTER OPERATIONAL CONTROL THAN MR GOLDHABER DESPITE THE NAMING OF AN IBM OFFICIAL TO THE TOP SPOT APPLE SAYS IT REMAINS FIRMLY COMMITTED TO KALEIDA SAID APPLE PRESIDENT AND CHIEF EXECUTIVE MICHAEL SPINDLER IN HIS NEW ROLE MR GOLDHABER 45 WILL HAVE MORE TIME TO RECRUIT LICENSEES AND FOCUS ON OTHER BUSINESS DEVELOPMENT TO DATE KALEIDA HAS SIGNED UP ONLY A FEW LICENSEES INCLUDING TOSHIBA CORP HITACHI LTD AND MITSUBISHI ELECTRIC CORP HIS FREQUENT ABSENCES HE MADE EIGHT TRIPS TO JAPAN LAST YEAR RESULTED IN A LACK OF MANAGEMENT DISCIPLINE COMPANY INSIDERS SAY AND SOME SENIOR MANAGERS HAD THREATENED TO QUIT UNLESS THE BOARD BROUGHT IN A REPLACEMENT MR GOLDHABER SAID HIS ONEYEAR CONTRACT HAD EXPIRED AND THE FIVEMEMBER BOARD INCLUDING HIMSELF DECIDED KALEIDA NEEDED A GUY WITH A CORPORATE BACKGROUND AND AN ABILITY TO CARRY THE COMPANY TO THE NEXT STAGE STILL THE ACTION APPARENTLY CAUGHT MR GOLDHABER BY SURPRISE IN AN INTERVIEW LAST FRIDAY HE SAID APPLE AND IBM HAD KEPT THEIR PROMISE TO ALLOW HIM TO OPERATE KALEIDA AS AN AUTONOMOUS STARTUP SO FAR SO GOOD HE SAID BUT YESTERDAY HE SAID THE COMPANIES HAD REJECTED HIS PROPOSAL TO TAKE THE COMPANY PUBLIC A PLAN HE SAID WOULD HAVE HELPED MOTIVATE EMPLOYEES BY MAKING THEM ELIGIBLE FOR STOCK OPTIONS HE NOTED THAT MOTIVATING THE 105MEMBER WORK FORCE MOSTLY SOFTWARE ENGINEERS FROM APPLE AND IBM WAS HIS SINGLE HARDEST PROBLEM I WASN'T AROUND AS MUCH AS I WOULD HAVE LIKED HE ADDED I SUSPECT I'M NOT AS GOOD A MANAGER OPERATIONALLY AS MR BRAUN MY STRENGTH IS IN THE DEVELOPMENT OF DEALS AND ALLIANCES AND STRUCTURING BUSINESS OPPORTUNITIES MR GOLDHABER HAD COME TO KALEIDA WITH ONE OF SILICON VALLEY'S MOST ECLECTIC RESUMES BEFORE STARTING A SUCCESSFUL PC NETWORKING FIRM HE FOUNDED A TRANSCENDENTAL MEDITATION SCHOOL IN IOWA AND HELPED DESIGN PENNSYLVANIA'S OFFICIAL EVACUATION PLAN FOR THREE MILE ISLAND HE COLLECTS ANTIQUE CARS INCLUDING A ROLLSROYCE AND A BENTLEY MR BRAUN IN CONTRAST SPENT THE PAST 20 YEARS AT IBM HE WORKS CLOSELY WITH ROBERT CARBERRY IBM'S MULTIMEDIA CZAR WHO WILL SHARE HIS TITLE AS KALEIDA CHAIRMAN WITH MR GOLDHABER THE MANAGEMENT SWITCH TAKES EFFECT JULY 31 IBM AND APPLE HAVE COMMITTED AN ESTIMATED 50 MILLION TO THE VENTURE WHICH WAS FORMED IN OCTOBER 1991 TODAY BOTH COMPANIES ARE UNDER PRESSURE TO CUT COSTS AND INTRODUCE NEW PRODUCTS THAT WILL REVIVE PROFITS THEY ARE HOPING THAT MULTIMEDIA EQUIPMENT SALES WILL TAKE OFF ONCE INFORMATIVE AND ENTERTAINING SOFTWARE IS AVAILABLE TO CONSUMERS MR BRAUN NOTED THAT KALEIDA IS ALSO PART OF A CONSORTIUM INCLUDING MOTOROLA INC AND SCIENTIFICATLANTA INC THAT IS BUILDING A SETTOP DEVICE TO PERMIT INTERACTIVE PROGRAMMING ON CABLE TV KALEIDA'S MAIN PRODUCT KNOWN AS SCRIPTX IS EXPECTED TO BE INTRODUCED IN THE FIRST QUARTER OF 1994 OUR COMBINATION OF PROJECTS IS WAY AHEAD OF EVERYONE ELSE TELL ME WHO IS EVEN CLOSE HE SAID MICHAEL W MILLER CONTRIBUTED TO THIS ARTICLE 9307160053 930716 BUSINESS BRIEF OUTBOARD MARINE CORP FIRM POSTS 3RDPERIOD LOSS AFTER 1074 MILLION CHARGE OUTBOARD MARINE CORP POSTED A FISCAL THIRDQUARTER LOSS AFTER TAKING A 1074 MILLION CHARGE TO RESTRUCTURE ITS TROUBLED OPERATIONS FOR THE QUARTER ENDED JUNE 30 THE WAUKEGAN ILL MARINE ENGINE AND BOAT CONCERN REPORTED A LOSS OF 1041 MILLION OR 531 A SHARE COMPARED WITH NET INCOME OF 149 MILLION OR 76 CENTS A SHARE A YEAR AGO SALES INCHED UP 1 TO 2954 MILLION FROM 2925 MILLION OUTBOARD MARINE HAS SUFFERED IN RECENT YEARS AS A TOUGH ECONOMY KEPT CONSUMERS FROM SPLURGING ON BOATS THE COMPANY RESPONDED BY TAKING MAJOR RESTRUCTURINGS IN 1990 AND 1991 THAT SLASHED ITS WORK FORCE 42 AND CLOSED 15 FACILITIES THE BIG CHARGE INCLUDED 315 MILLION TO CLOSE AN ASYETUNDETERMINED NUMBER OF FACILITIES AND FIRE ABOUT 400 PEOPLE OR 9 OF ITS LABOR FORCE THAT DOESN'T HANDLE PRODUCTION THE CHARGE ALSO INCLUDED 759 MILLION TO WRITE OFF GOODWILL AND OTHER INTANGIBLES RELATED TO PAST ACQUISITIONS OF CERTAIN BOAT BRANDS 9307160052 930716 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BELGIUM CALLED FOR EUROPEAN COMMUNITY AND AIRLINE OFFICIALS TO MEET IN SEPTEMBER TO DISCUSS THE INDUSTRY'S WOES MARKED BY FARE WARS AND FINANCIAL LOSSES BELGIUM THE CURRENT EC PRESIDENT HOPES TO PREVENT FAILURES AMONG EUROPEAN AIRLINES SCARRED BY LOSSES TOTALING 4 BILLION IN THE PAST THREE YEARS ALL THE BIG CARRIERS ARE CUTTING JOBS OR WEIGHING PLANS TO DO SO THE PROPOSED MEETING TO FIND WAYS TO IMPROVE CARRIERS' PERFORMANCE AND PAVE THE WAY FOR A UNIFIED EC AVIATION POLICY TOWARD OTHER NATIONS FOLLOWS THE EC'S FORMATION OF AN INDUSTRY PANEL TO COME UP WITH SOLUTIONS BY YEAR END BUT THE NEW CALL TO ARMS GOT A TEPID RESPONSE THE ASSOCIATION OF EUROPEAN AIRLINES SAID HIGHLEVEL TALKS COULD BE USEFUL BUT QUESTIONED ANY OUTCOME AS CARRIERS' VIEWS ON GOVERNMENT INVOLVEMENT IN THE INDUSTRY VARY WIDELY SUPPORT ALSO ISN'T UNANIMOUS FOR EC RULES THAT LIBERALIZED THE EUROPEAN AIRLINE MARKET LAST JAN 1 THE THIRD AND MOST SWEEPING STAGE OF DEREGULATION TOOK EFFECT FREEING THE SETTING OF RATES AND ROUTES THE RUSSIAN PARLIAMENT PASSED LEGISLATION CREATING A STATERUN MONOPOLY TO OVERSEE MINING PRODUCTION AND SALES OF ALL PRECIOUS STONES AND METALS THE MEASURE ALSO SHIFTS CONTROL OF THE COUNTRY'S GOLD RESERVES TO THE CENTRAL BANK FROM THE GOVERNMENT AND PARLIAMENT IT PROVIDES FOR RUSSIAN COMPANIES AND INDIVIDUALS TO APPLY FOR GOLD MINING LICENSES RUSSIA HAS GOLD RESERVES OF 3335 METRIC TONS GOLD PRODUCTION LAST YEAR FELL 7 TO 146 METRIC TONS FROM A YEAR EARLIER AND THIS YEAR'S OUTPUT IS EXPECTED TO BE ABOUT THE SAME THE EUROPEAN INVESTMENT BANK RESUMED LENDING TO LEBANON DISCONTINUED DURING ITS CIVIL WAR WITH A 693 MILLION LOAN TO REHABILITATE WATER SEWER AND ELECTRICITY SYSTEMS AND REDUCE POLLUTION THE EIB THE LONGTERM LENDING BODY OF THE EUROPEAN COMMUNITY SAID THE UTILITY PROJECTS ARE PRIORITIES IN LEBANON'S EMERGENCY RECONSTRUCTION PROGRAM THE WORLD BANK ALSO WILL PROVIDE FINANCING PAKISTAN DEVALUED ITS RUPEE CURRENCY 32 AGAINST THE US DOLLAR IN ITS LARGEST DEVALUATION IN 11 YEARS THE NEW RATE IS 2815 RUPEES TO THE DOLLAR THE MOVE COINCIDED WITH TRADE POLICIES UNVEILED BY THE COMMERCE MINISTRY WHICH SET A GOAL OF AN 18 BOOST IN THE CURRENT FISCAL YEAR'S EXPORTS TO 8 BILLION FROM THE PREVIOUS YEAR PAKISTAN'S TEXTILE MARKET IS THREATENED BY INDIA AND CHINA WHICH RECENTLY REALIGNED THEIR CURRENCIES AGAINST THE DOLLAR PAKISTAN'S TEXTILE TRADE GROUP HAS DEMANDED THAT THE COUNTRY'S CURRENCY BE DEVALUED 8 THE COMMERCE AGENCY DIDN'T RULE OUT A FURTHER DEVALUATION VIETNAM'S NATIONAL ASSEMBLY LIBERALIZED LAWS ON LONGTERM USE OF FARMLAND WHICH CONTINUES TO BE OWNED BY THE COMMUNIST GOVERNMENT THE LEGISLATION ALLOWS FARMING FAMILIES WHO ACCOUNT FOR 80 OF THE POPULATION TO TRANSFER EXCHANGE LEASE AND INHERIT RIGHTS TO USE LAND AND TO OFFER IT AS COLLATERAL FOR AGRICULTURAL LOANS FOREIGN DIPLOMATIC MISSIONS AND ORGANIZATIONS MAY RENT LAND FOR AS LONG AS 99 YEARS THE LEGISLATION DOESN'T REGULATE LAND USE BY FOREIGN FIRMS AND INVESTORS WHICH ARE GOVERNED BY A FOREIGN INVESTMENT LAW A FINANCE MINISTRY RESEARCH GROUP CALLED ON THE JAPANESE GOVERNMENT TO FOCUS ON IMPROVING LIVING STANDARDS SHIFTING ITS PRIORITY FROM BUILDING UP INDUSTRY IT SAID THE TRADITIONAL POLICY OF STRENGTHENING GOVERNMENT AND INDUSTRY COORDINATION TO STIMULATE ECONOMIC GROWTH IS AT A TURNING POINT AS GLOBAL TRADE FRICTIONS INTENSIFY THE GROUP'S REPORT URGED SIMPLIFICATION OF INTERVENTION IN INDUSTRY AND DISCLOSURE OF MORE DATA TO RESTORE PUBLIC CONFIDENCE BUT IT JUSTIFIED GOVERNMENT INTERVENTION IN FINANCIAL MARKETS CITING THEIR IMPORTANCE TO ECONOMIC STABILITY SAVINGS DEPOSITS JUMPED SINCE CHINA RAISED INTEREST RATES IN A CAMPAIGN TO LURE CASH BACK TO BANKS THE CHINA DAILY SAID BANKS ALSO ARE STAYING OPEN LONGER AND TRYING TO IMPROVE SERVICE THEIR APPEAL TO SAVE WITH ENTHUSIASM IS WORKING FOR EXAMPLE THE PEOPLE'S CONSTRUCTION BANK OF CHINA SAID THAT LAST SUNDAY WHEN BANKS FIRST BOOSTED RATES SAVINGS DEPOSITS AT ITS BEIJING BRANCH ROSE TO A DAILY RECORD OF 16 MILLION MORE THAN DOUBLE ITS DAILY AVERAGE LAST MONTH CHINA'S FIRSTHALF TAX REVENUES ROSE 124 TO 2465 BILLION FROM A YEAR EARLIER BUT THIS WON'T EASE A BUDGET DEFICIT CAUSED BY SPENDING ON PUBLIC WORKS AND INEFFICIENT STATE ENTERPRISES THE RISE IN TAX RECEIPTS TRAILS THE EXPECTED ECONOMIC GROWTH RATE OF 13 TO 15 FOR THE FIRST SIX MONTHS LAST YEAR THE ECONOMY EXPANDED 123 AUSTRIA'S FIRSTQUARTER GROSS DOMESTIC PRODUCT SHRANK AN ESTIMATED 13 FROM A YEAR EARLIER THE FIRST SUCH DECLINE IN THE ECONOMY SINCE 1981 THE WIFO ECONOMIC RESEARCH INSTITUTE IN VIENNA SAID CHINA ORDERED BLOOD BANKS TO SCREEN SUPPLIES FOR THE AIDS VIRUS ONLY A DOZEN AIDS CASES HAVE BEEN CONFIRMED IN CHINA BUT AUTHORITIES EXPECT RAPID GROWTH 9307160051 930716 BUSINESS BRIEF FOOTHILL GROUP INC CONCERN PLANS TO SPIN OFF ITS THRIFT HOLDING COMPANY FOOTHILL GROUP INC A FINANCIALSERVICES HOLDING COMPANY SAID IT WILL SPIN OFF ITS UNPROFITABLE FOOTHILL THRIFT & LOAN UNIT INTO A SEPARATE SAVINGS AND LOAN ASSOCIATION HOLDING COMPANY ONCE THE SPLIT IS COMPLETED EXPECTED IN ABOUT TWO TO THREE MONTHS THE THRIFT CONCERN WILL BE A PUBLICLY TRADED COMPANY WITH NO FURTHER CONNECTION WITH FOOTHILL GROUP A COMPANY SPOKESMAN SAID HE SAID THE COMPANY DIDN'T WANT TO BE IN A REGULATED BUSINESS FOOTHILL GROUP'S OTHER ACTIVITIES INCLUDE MANAGING PARTNERSHIPS THAT INVEST IN THE DEBT OF TROUBLED COMPANIES AND PROVIDING ASSETBACKED FINANCING THE SPINOFF WILL MAKE IT EASIER FOR THE THRIFT TO RAISE ADDITIONAL CAPITAL THE SPOKESMAN SAID FOOTHILL GROUP SAID THE NEW THRIFT HOLDING COMPANY IS EXPECTED TO RAISE 10 MILLION TO 15 MILLION OF NEW EQUITY CAPITAL THE ANTICIPATED BOOST WASN'T REQUIRED BY REGULATORS HE SAID FOOTHILL GROUP ALSO SAID SECONDQUARTER NET INCOME JUMPED 76 TO 61 MILLION OR 37 CENTS A SHARE FROM 35 MILLION OR 26 CENTS A SHARE A YEAR EARLIER 9307160050 930716 BUSINESS BRIEF RAYTHEON CO NET INCOME INCREASED 83 IN FISCAL SECOND QUARTER RAYTHEON CO SAID EARNINGS IN THE SECOND QUARTER ENDED JULY 4 ROSE 83 DESPITE A 27 DECLINE IN SALES AS STRONGER PERFORMANCE IN COMMERCIAL OPERATIONS OFFSET FLAT DEFENSE SALES THE LEXINGTON MASS ELECTRONICS AIRCRAFT AND APPLIANCE MAKER SAID NET INCOME ROSE TO 1793 MILLION OR 132 A SHARE FROM 1656 MILLION OR 123 A SHARE A YEAR EARLIER SALES SLIPPED TO 226 BILLION FROM 232 BILLION DENNIS J PICARD RAYTHEON'S CHAIRMAN AND CHIEF EXECUTIVE SAID RAYTHEON'S OPERATING PERFORMANCE IN COMMERCIAL ELECTRONICS APPLIANCES AND AIRCRAFT CONTINUED TO IMPROVE RAYTHEON SAID ITS TOTAL BACKLOG AT THE END OF THE LATEST QUARTER WAS 683 BILLION DOWN FROM 757 BILLION A YEAR EARLIER THE COMPANY SAID IT HAD ABOUT 61400 EMPLOYEES AT THE END OF THE QUARTER DOWN FROM 63300 EMPLOYEES AT THE END OF THE FISCAL FIRST QUARTER AND 68200 EMPLOYEES AT THE END OF THE 1992 QUARTER 9307160049 930716 BETHLEHEM STEEL'S BETHSHIP UNIT BETHLEHEM PA BETHLEHEM STEEL CORP'S BETHSHIP UNIT SAID IT REACHED A TENTATIVE LABOR PACT WITH THE INDUSTRIAL UNION OF MARINE & SHIPBUILDING WORKERS OF AMERICA/INTERNATIONAL ASSOCIATION OF MACHINISTS & AEROSPACE WORKERS THE 42MONTH PACT WOULD COVER 1000 WORKERS AT BETHSHIP'S SPARROWS POINT YARD IN BALTIMORE TERMS OF THE AGREEMENT WEREN'T RELEASED WORKERS WERE SCHEDULED TO VOTE ON THE PACT LAST NIGHT 9307160048 930716 BUSINESS BRIEF PLATINUM SOFTWARE CORP QUARTERLY LOSS IS EXPECTED CHARGE FOR PURCHASE CITED PLATINUM SOFTWARE CORP SAID IT EXPECTS TO REPORT A FISCAL FOURTHQUARTER LOSS REFLECTING A CHARGE OF AS MUCH AS 57 MILLION OR 65 CENTS A SHARE RELATED TO ITS PURCHASE OF A SOFTWARE COMPANY PLATINUM'S CHIEF FINANCIAL OFFICER JOHN ERICKSON DECLINED TO ESTIMATE THE SIZE OF THE EXPECTED LOSS FOR THE QUARTER ENDED JUNE 30 AND SAID HE WASN'T SURE WHETHER THERE WOULD ALSO BE A LOSS FOR THE YEAR IN THE YEARAGO QUARTER THE IRVINE CALIF FINANCIAL SOFTWARE COMPANY POSTED NET INCOME OF 93000 OR TWO CENTS A SHARE ON REVENUE OF 5 MILLION FOR FISCAL 1992 PLATINUM REPORTED NET INCOME OF 937000 OR 17 CENTS A SHARE ON REVENUE OF 159 MILLION PLATINUM SAID IT PAID 82 MILLION FOR FRX ANOTHER FINANCIAL SOFTWARE COMPANY A COMPANY SPOKESMAN SAID IT WAS STANDARD PRACTICE IN THE SOFTWARE INDUSTRY TO WRITE OFF SOME ACQUIRED SOFTWARE ASSETS 9307160047 930716 BUSINESS BRIEF JUSTIN INDUSTRIES INC CONCERN POSTS A 49 JUMP IN SECONDPERIOD NET INCOME JUSTIN INDUSTRIES INC SAID SECONDQUARTER NET INCREASED 49 THANKS TO IMPROVING PROFIT MARGINS AND A STRONGER HOMEBUILDING INDUSTRY THE FORT WORTH TEXAS COMPANY A MAKER OF BUILDING MATERIALS AND BOOTS SAID NET WAS 79 MILLION OR 28 CENTS A SHARE UP FROM 53 MILLION OR 19 CENTS A SHARE A YEAR AGO SALES ROSE 11 TO 1161 MILLION FROM 1045 MILLION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY JUSTIN CLOSED AT 20 DOWN 75 CENTS 9307160046 930716 BUSINESS BRIEF OLYMPIA & YORK DEVELOPMENTS LTD BANKRUPTCY JUDGE APPROVES NEW BOARD FOR US UNIT A US BANKRUPTCY COURT JUDGE APPROVED A NEW BOARD FOR THE US UNIT OF OLYMPIA & YORK DEVELOPMENTS LTD AFTER A SETTLEMENT WAS REACHED TO AN OBJECTION BROUGHT BY TORONTO'S REICHMANN FAMILY A SPOKESMAN FOR THE US UNIT SAID THE JUDGE GAVE PRELIMINARY APPROVAL TO THE BOARD LAST WEEK BUT IMPLEMENTATION OF THE ORDER WAS DELAYED BY THE DISPUTE WITH THE REICHMANN FAMILY THE FORMER CONTROLLING SHAREHOLDER OF THE CANADIAN PARENT COMPANY THE US COURT ORDER ALSO ESTABLISHES A CORPORATE GOVERNANCE STRUCTURE FOR THE US COMPANY OLYMPIA & YORK COS THE REICHMANNS RELINQUISHED CONTROL OF TORONTOBASED O&Y DEVELOPMENTS WHEN IT EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION IN MARCH HOWEVER THE FAMILY STILL RETAINS A 20 STAKE IN THE COMPANY'S US BUSINESS THE REMAINING 80 IS HELD BY O&Y DEVELOPMENTS WHICH IS BEING RUN BY A CANADIAN COURTAPPOINTED ADMINISTRATOR THE APPROVAL OF THE BOARD FOR O&Y USA MEANS THE COMPANY CAN NOW RESUME NEGOTIATING WITH ITS CREDITORS TO RESTRUCTURE ITS 53 BILLION OF DEBT 9307160045 930716 BUSINESS BRIEF IMO INDUSTRIES INC AEROSPACE UNITS TO BE SOLD TO AFFILIATE OF KELSO & CO IMO INDUSTRIES INC LAWRENCEVILLE NJ SAID IT ENTERED A DEFINITIVE AGREEMENT TO SELL ITS FOUR AEROSPACE DIVISIONS TO AN AFFILIATE OF KELSO & CO TERMS WEREN'T DISCLOSED THE SALE IS PART OF A DIVESTITURE PROGRAM THE COMPANY IS USING TO PAY DOWN SENIOR DEBT IN CONNECTION WITH A RESTRUCTURING OF ITS CREDIT FACILITY COMPLETED YESTERDAY AS A RESULT OF THE NEW CREDIT FACILITY IMO SAID ERNST & YOUNG AUDITORS ARE EXPECTED SHORTLY TO REVISE THEIR REPORT ON ITS 1992 RESULTS IN WHICH THEY HAD EXPRESSED CONCERN ABOUT THE COMPANY'S FINANCIAL UNCERTAINTIES THE CREDIT FACILITY CLEARS UP THOSE UNCERTAINTIES IMO SAID THE SALE TO KELSO A NEW YORK LEVERAGEDBUYOUT COMPANY IS EXPECTED TO BE COMPLETED BY SEPTEMBER THE FOUR DIVISIONS TO BE SOLD ADEL FASTENERS AEROPRODUCTS CONTROLEX AND WIGGINS CONNECTORS HAD COMBINED SALES OF 60 MILLION IN 1992 IMO WHICH HAD 1992 SALES OF 928 MILLION SUPPLIES ANALYTICAL AND OPTICAL INSTRUMENTS ELECTRONIC AND MECHANICAL CONTROLS POWER PRODUCTS AND SUPPORT SERVICES TO INDUSTRIAL AND DEFENSE CUSTOMERS 9307160044 930716 PROBE OF ACTIONS BY LOPEZ AT GM SPREADS TO US FEDERAL INQUIRY IN DETROIT TESTIMONY IN GERMANY CONTRADICTS EXOFFICIAL BY WALL STREET JOURNAL REPORTERS AUDREY CHOI IN HAMBURG GERMANY AND JOSEPH B WHITE IN DETROIT THE US ATTORNEY IN DETROIT IS INVESTIGATING WHETHER FORMER GENERAL MOTORS CORP PURCHASING BOSS J IGNACIO LOPEZ DE ARRIORTUA TOOK GM SECRETS WHEN HE LEFT THE COMPANY PEOPLE FAMILIAR WITH THE SITUATION SAID MEANWHILE GM USED A CIVIL COURT HEARING IN GERMANY TO LAUNCH A POTENTIALLY DAMAGING ATTACK ON MR LOPEZ NOW VOLKSWAGEN AG'S PRODUCTION CHIEF AND NO 2 MAN TO VW CHAIRMAN FERDINAND PIECH MR LOPEZ WHO GM CONTENDS TOOK THE SECRETS WHEN HE DEFECTED TO VW IN MARCH IS ALREADY BEING INVESTIGATED BY GERMAN PROSECUTORS A THIRD GM WITNESS NORTH AMERICAN OPERATIONS PURCHASING EXECUTIVE ALAN PERRITON TESTIFIED THAT HE SEARCHED THE WARREN MICH OFFICE USED BY JOSE MANUEL GUTIERREZ MR LOPEZ'S CLOSE COWORKER AND FOUND IT VIRTUALLY STRIPPED OF DOCUMENTS MR GUTIERREZ WAS KNOWN TO HAVE MR GUTIERREZ ATTRACTED ATTENTION DURING HIS FINAL WEEKS AT GM WITH UNUSUALLY BROAD REQUESTS FOR CONFIDENTIAL INFORMATION FROM GM STAFFERS IN EUROPE AND NORTH AMERICA IN DETROIT MEANWHILE US JUSTICE DEPARTMENT INVESTIGATORS HAVE BEGUN DELVING INTO THE POSSIBILITY OF INDUSTRIAL ESPIONAGE BY MR LOPEZ AND HIS ASSOCIATES NO CHARGES HAVE BEEN FILED AGAINST MR LOPEZ OR ANY OF HIS ASSOCIATES AND INDIVIDUALS KNOWLEDGEABLE ABOUT THE SITUATION INDICATED THE JUSTICE DEPARTMENT'S INQUIRY HAS JUST BEGUN SPOKESMEN FOR THE US ATTORNEY'S OFFICE IN DETROIT AND THE FEDERAL BUREAU OF INVESTIGATION DECLINED TO COMMENT IT ISN'T CLEAR WHAT PROMPTED US AUTHORITIES TO BEGIN A PROBE ALTHOUGH GERMAN PROSECUTORS HAVE SAID THEY'RE INVESTIGATING WHETHER SOME OF THE CONFIDENTIAL GM AND OPEL DOCUMENTS THEY TURNED UP THIS MONTH IN A WIESBADEN APARTMENT RENTED BY TWO OF MR LOPEZ'S ASSOCIATES CAME FROM GM'S US HEADQUARTERS THE GERMAN CRIMINAL INVESTIGATION WAS INITIATED BY A GM COMPLAINT NO CHARGES HAVE BEEN BROUGHT AGAINST MR LOPEZ ATTORNEYS REPRESENTING VOLKSWAGEN WOULD NOT COMMENT AND VW PRESS OFFICERS COULD NOT BE REACHED NO PROMINENT VW OFFICIALS ATTENDED YESTERDAY'S PROCEEDINGS IN HAMBURG MR LOPEZ ALSO COULDN'T BE REACHED GM GOT TO PREVIEW ITS CASE AGAINST MR LOPEZ BY PIGGYBACKING ON LITIGATION THAT TECHNICALLY DOESN'T INVOLVE THE AUTO MAKER YESTERDAY'S HEARING WAS SOUGHT BY THE GERMAN NEWS MAGAZINE DER SPIEGEL WHICH IS ATTEMPTING TO GET A REVERSAL OF A COURTENFORCED GAG ORDER SLAPPED ON IT BY VW VW USED GERMAN LAW TO PROHIBIT SPIEGEL FROM REPEATING CHARGES OF INDUSTRIAL ESPIONAGE MADE AGAINST MR LOPEZ AND HIS ASSOCIATES IN A COVER STORY IN MAY TO SECURE THE FORBEARANCE ORDER VW FILED SWORN STATEMENTS BY MR LOPEZ AND MR GUTIERREZ ASSERTING THAT CERTAIN ALLEGATIONS IN THE SPIEGEL ARTICLE WERE FALSE DER SPIEGEL RESPONDED BY ASKING GM TO ALLOW ITS EMPLOYEES TO TESTIFY ON ITS BEHALF YESTERDAY GM EAGERLY OBLIGED AND ARRAYED 22 EMPLOYEES FROM ITS GERMAN ADAM OPEL AG SUBSIDIARY IN RUSSELSHEIM GM EUROPE HEADQUARTERS IN ZURICH AND ITS US OPERATIONS IN THE EIGHTHOUR SESSION YESTERDAY ONLY THREE OF THE WITNESSES WERE CALLED TO TESTIFY TO ELABORATE ON THE SWORN AFFIDAVITS SUBMITTED BY THE SPIEGEL LEGAL COUNSEL THE GERMAN STATE COURT JUDGE INDICATED AT THE OUTSET OF THE HEARING THAT ON THE BASIS OF WRITTEN TESTIMONY ALREADY SUBMITTED BY DER SPIEGEL THE FEELING OF THE THREEJUDGE PANEL THAT WILL DECIDE THE CASE WAS THAT SPIEGEL HAD A 5060 CHANCE OF A DECISION IN ITS FAVOR BECAUSE OF THE LEGAL RIGHT OF A JOURNALISTIC ORGANIZATION TO PUBLISH STORIES DISCUSSING RUMORS AND SPECULATION AND TO PUBLISH NEWS DEEMED TO BE OF PUBLIC INTEREST THE COURT COULD DECIDE IN FAVOR OF REMOVING THE GAG RULE ON SPIEGEL WITHOUT ANY CONCLUSIVE FINDINGS ABOUT THE INDUSTRIAL ESPIONAGE ALLEGATIONS AGAINST MR LOPEZ WE ARE NOT THE DISTRICT ATTORNEY OR A HELPING HAND TO THE DISTRICT ATTORNEY'S OFFICE THE HAMBURG STATE COURT JUDGE EMPHASIZED NEVERTHELESS THE DARMSTADT PROSECUTOR'S OFFICE WHICH IS IN CHARGE OF THE CRIMINAL INQUIRY INTO MR LOPEZ SAID IT WAS WATCHING THE HEARINGS VERY ATTENTIVELY AND THAT IT WOULD INEVITABLY AFFECT THE CRIMINAL PROCEEDINGS THE COURT IS SCHEDULED TO RECONVENE TUESDAY TO ANNOUNCE ITS DECISION ONE OF THE KEY DISPUTED POINTS IS MR LOPEZ'S CONDUCT DURING A MEETING OF GM'S INTERNATIONAL STRATEGY BOARD ON MARCH 89 LESS THAN A WEEK BEFORE HE JUMPED TO VW AT THAT MEETING DETAILED DESIGN STUDIES AND TECHNICAL DATA ON THE FUTURE ASTRA MODEL WERE PRESENTED IN HIS SWORN STATEMENT MR LOPEZ DENIED SPIEGEL ALLEGATIONS THAT HE RECEIVED THESE STUDIES HE SAID THAT THE ONLY MATERIALS HE RECEIVED WERE FOUR CHARTS CONCERNING A PROJECT THAT HAD BEEN TURNED DOWN BUT JOHN HOWELL DIRECTOR OF BUSINESS PLANNING AT GM EUROPE WHO MADE THE PRESENTATION ON MARCH 8 TESTIFIED THAT MR LOPEZ WAS ONE OF FIVE BOARD MEMBERS WHO ASKED FOR COPIES OF THE PRESENTATION I SPECIFICALLY REMEMBER GIVING HIM LOPEZ ONE MR HOWELL TESTIFIED NOTING THAT THE PACKAGE CONSISTED OF ABOUT 100150 PAGES AROUND TWO CENTIMETERS THICK 9307160043 930716 BUSINESS BRIEF DELTA AIR LINES CHARGE TOTALING 639 MILLION IS SET FOR FISCAL 4TH PERIOD DELTA AIR LINES SAID IT HAS MADE FOUR ACCOUNTING CHANGES THAT WILL RESULT IN A TOTAL AFTERTAX CHARGE OF 639 MILLION OR 1282 A SHARE FOR THE FOURTH QUARTER ENDED JUNE 30 IN THE YEARAGO QUARTER DELTA HAD A LOSS OF 1802 MILLION OR 372 A SHARE ON 283 BILLION IN REVENUE THE AIRLINE WHICH IS BASED IN ATLANTA SAID THE STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO 106 NOW REQUIRES THE COMPANY TO EXPENSE POSTRETIREMENT BENEFITS DURING THE YEARS THAT EMPLOYEES RENDER SERVICE AS OPPOSED TO WHEN THOSE COSTS ARE INCURRED DELTA SAID IMPLEMENTING THE NEW RULE HAS RESULTED IN AN AFTERTAX CHARGE OF 818 MILLION THE CHANGE ALSO INCREASED DELTA'S EXPENSES BY 81 MILLION AFTER TAXES THE CARRIER ALSO CHANGED ITS ACCOUNTING FOR INCOME TAXES CAUSING A ONETIME GAIN OF 231 MILLION 9307160042 930716 BUSINESS BRIEF WESTBRIDGE CAPITAL CORP COMPANY SAYS NET INCOME ABOUT DOUBLED IN 2ND PERIOD WESTBRIDGE CAPITAL CORP SAID IT EXPECTS TO REPORT THAT EARNINGS ABOUT DOUBLED FOR THE SECOND QUARTER WHILE REVENUE ROSE 37 NET INCOME IN THE YEAREARLIER QUARTER WAS 400000 OR NINE CENTS A SHARE MARTIN E KANTOR CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOLD ANALYSTS IN NEW YORK THAT REVENUE FOR THE QUARTER WAS ABOUT 19 MILLION UP FROM 138 MILLION A YEAR EARLIER MR KANTOR SAID THE FORT WORTH TEXAS INSURANCE HOLDING COMPANY WILL RELEASE QUARTERLY RESULTS IN TWO WEEKS HE ATTRIBUTED THE GAINS TO STRONGER MARKETS FOR THE COMPANY'S SUPPLEMENTAL HEALTH INSURANCE DESPITE UNCERTAINTIES CAUSED BY THE DELAYED INTRODUCTION OF THE CLINTON ADMINISTRATION'S HEALTHREFORM PROPOSALS ALSO HE SAID TWO RECENT ACQUISITIONS SHOULD CONTINUE TO BOOST THE COMPANY'S RESULTS 9307160041 930716 BUSINESS BRIEF MICROPROSE INC FIRM ENTERS MERGER GIVING CONTROL TO SPECTRUM HOLDERS MICROPROSE INC HUNT VALLEY MD SAID IT ENTERED A MERGER AGREEMENT WITH CLOSELY HELD SPECTRUM HOLOBYTE INC THAT WOULD GIVE SPECTRUM SHAREHOLDERS CONTROL OF THE ENTERTAINMENT SOFTWARE MAKER HOLDERS OF SPECTRUM WILL RECEIVE 06 MICROPROSE COMMON SHARE IN EXCHANGE FOR ONE SPECTRUM COMMON SHARE GIVING THEM CONTROL OF 60 OF MICROPROSE COMMON STOCK OUTSTANDING THE MERGED COMPANY WILL BE CALLED MICROPROSE SPECTRUM BASED IN ALAMEDA CALIF MAKES COMPUTERGAMES SOFTWARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MICROPROSE SHARES DECLINED 50 CENTS TO CLOSE AT 675 SEPARATELY MICROPROSE REPORTED A LOSS FOR THE YEAR ENDED MARCH 31 OF 53 MILLION OR 78 CENTS A SHARE COMPARED WITH NET INCOME OF 41 MILLION OR 70 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 12 TO 465 MILLION FROM 414 MILLION BUT SALES COSTS JUMPED 51 BECAUSE OF A CHANGE IN THE PRODUCT MIX MICROPROSE SAID IT EXPECTS TO POST A SIGNIFICANT LOSS FOR THE FIRST QUARTER OF FISCAL 1994 9307160040 930716 POLITICS & POLICY SURGEON GENERAL NOMINEE GETS INCREASED SCRUTINY WASHINGTON PRESIDENT CLINTON'S CHOICE FOR SURGEON GENERAL JOYCELYN ELDERS IS GETTING INCREASED SCRUTINY BY THE WHITE HOUSE'S OWN LAWYERS IN ADDITION THE CHAIRMAN AND RANKING REPUBLICAN ON THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE ANNOUNCED LATE YESTERDAY THAT HER CONFIRMATION HEARINGS WHICH WERE SCHEDULED TO BEGIN TODAY HAVE BEEN POSTPONED TO JULY 23 SENS EDWARD KENNEDY D MASS AND NANCY KASSEBAUM R KAN SAID THE DELAY WOULD PERMIT THE COMMITTEE TO REVIEW BANKING DOCUMENTS AND CLARIFY OUTSTANDING ISSUES COMMITTEE MEMBERS ARE SEEKING MORE INFORMATION ABOUT A SUIT FILED AGAINST HER AND OTHER DIRECTORS OF A BANK IN ARKANSAS THE SUIT WAS SETTLED OUT OF COURT YESTERDAY WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID THE COUNSEL'S OFFICE IS LOOKING INTO REPORTS THAT DR ELDERS WHO WAS AN AIDE TO MR CLINTON WHEN HE WAS GOVERNOR OF ARKANSAS SIMULTANEOUSLY RECEIVED PAY FROM THE STATE AND FEDERAL GOVERNMENTS THE OFFICE ALSO IS EXAMINING REPORTS THAT HER HUSBAND DIDN'T PAY SOCIAL SECURITY TAXES FOR A NURSE WHO ATTENDED HIS MOTHER MS MYERS DIDN'T GIVE ANY INDICATION THAT THE PRESIDENT MIGHT DROP THE NOMINATION AIDES INSIDE THE WHITE HOUSE SAID MR CLINTON IS STRONGLY INCLINED TO CONTINUE TO FIGHT ON DR ELDERS' BEHALF 9307160039 930716 BUSINESS BRIEF MOBIL CORP TWO NORTH SEA PLATFORMS BEGIN PRODUCING NATURAL GAS MOBIL CORP FAIRFAX VA SAID IT STARTED NATURALGAS PRODUCTION FROM TWO AUTOMATED UNMANNED PLATFORMS IN THE NORTH SEA THAT ARE CAPABLE OF PRODUCING AS MUCH AS 200 MILLION STANDARD CUBIC FEET OF GAS A DAY THE LANCELOT AND GUINEVERE PLATFORMS ARE IN THE UK SECTOR OF THE NORTH SEA 40 MILES OFF THE NORFOLK COAST MOBIL OWNS 99 OF LANCELOT AND THE REMAINDER IS SPLIT BETWEEN INDUSTRIAL SCOTLAND ENERGY LTD A UNIT OF TOTAL OIL MARINE PLC AND BRABANT OILEX LTD GUINEVERE IS 75OWNED BY MOBIL WITH 18 OWNED BY INDUSTRIAL SCOTLAND AND THE REST BY BRABANT THE TWO PLATFORMS ARE PART OF A LARGER CONCENTRATION OF PRODUCING ACREAGE OWNED OR OPERATED BY MOBIL IN THE SOUTHERN GAS BASIN OF THE NORTH SEA THE NEARBY CAMELOT FIELD HAS TWO PLATFORMS YIELDING AN AVERAGE OF 70 MILLION CUBIC FEET A DAY WHILE THE TRISTAN FIELD NOW DELIVERS 22 MILLION CUBIC FEET OF GAS A DAY 9307160038 930716 FOREIGN EXCHANGE DOLLAR GAINS AGAINST MAJOR CURRENCIES AS INVESTORS SHUN INSTABILITY IN ERM BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS SEEKING REFUGE FROM INSTABILITY IN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM ERM BOUGHT THE DOLLAR THURSDAY LEAVING THE US CURRENCY HIGHER AGAINST MOST MAJOR CURRENCIES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17205 MARKS UP FROM 17150 LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10805 YEN UP FROM 10707 YEN STERLING WAS TRADING AT 14905 DOWN FROM 15035 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10775 YEN AND AT 17209 MARKS WITH SPECULATORS CONTINUING TO SELL THE FRENCH FRANC AND DANISH KRONE FOR MARKS TALK BEGAN TO GROW THURSDAY OF A POTENTIAL REALIGNMENT OF THE ERM OR THE POSSIBLE WITHDRAWAL OF SOME CURRENCIES FROM THE ERM ALTOGETHER AS ANY REALIGNMENT WOULD INVOLVE THE DEVALUATION OF SOME EUROPEAN CURRENCIES INVESTORS BOUGHT DOLLARS AS A SAFE PLACE TO RIDE OUT THE STORM BUT MANY TRADERS DOUBT A REALIGNMENT WILL TAKE PLACE SAYING ECONOMIC FUNDAMENTALS IN FRANCE AND DENMARK DON'T JUSTIFY LOWER VALUES FOR THEIR CURRENCIES I THINK THE SPECULATIVE PRESSURE IS GOING TO SUBSIDE ON ITS OWN SAID ALEXIS MCCARTHY A CORPORATE FOREIGN EXCHANGE TRADER AT BANK INDOSUEZ IN NEW YORK MOST PLAYERS ALREADY HAVE ESTABLISHED THEIR SPECULATIVE POSITIONS AGAINST THE WEAK CURRENCIES SHE SAID AND UNLESS THE MARK POSTS MORE LARGE GAINS SOON THEY WOULD SOON LOOK TO TAKE PROFITS ALTHOUGH THE MARK ENDED STRONGER AT 34179 FRANCS COMPARED WITH 34148 FRANCS WEDNESDAY ITS GAINS HAVE SLOWED AS IT APPROACHES THE EMS CEILING OF 34305 FRANCS THE ERM IS A TOOL LIMITING FLUCTUATIONS OF VALUE BETWEEN EUROPEAN CURRENCIES IF ONE CURRENCY REACHES ITS CEILING VALUE AGAINST ANOTHER BOTH COUNTRIES' CENTRAL BANKS ARE REQUIRED TO BUY THE WEAK CURRENCY IN THE FOREIGNEXCHANGE MARKET UNTIL ITS VALUE IMPROVES A REALIGNMENT WHICH WOULD REQUIRE A SPECIAL MEETING OF THE EUROPEAN COMMUNITY'S MONETARY COMMITTEE WOULD ALTER THE CORE VALUE OF CURRENCIES AROUND WHICH FLUCTUATIONS OCCUR THE DANISH KRONE SPENT MUCH OF THURSDAY NEAR ITS ERM FLOOR AGAINST THE DUTCH GUILDER DESPITE KRONE PURCHASES BY THE DANISH NATIONAL BANK AND REPORTEDLY ITS DUTCH COUNTERPART IN AN ATTEMPT TO SUPPORT THE DANISH CURRENCY THE DANISH NATIONAL BANK ALSO RAISED ITS TWOWEEK SECURITIES REPURCHASE RATE TO 9 FROM 780 IN A BID TO ATTRACT BUYERS TO THE KRONE HIGHER INTEREST RATES MAKE A CURRENCY MORE ATTRACTIVE BY INCREASING THE RATE OF RETURN ON INVESTMENTS DENOMINATED IN THAT CURRENCY NEITHER ACTION LIFTED THE KRONE OFF ITS FLOOR MANY TRADERS SAW THE DECLINE OF THE DANISH CURRENCY AS LESS OF A STATEMENT ABOUT DENMARK THAN ABOUT GERMANY SOME MARKET OBSERVERS HAD WAITED IN VAIN FOR THE DEUTSCHE BUNDESBANK TO CUT ITS BENCHMARK LOMBARD AND DISCOUNT INTEREST RATES THURSDAY IN A SHOW OF SUPPORT FOR THE ERM FOR THE EMS TO EXIST IT NEEDS TO HAVE A STRONG COMMITMENT FROM ALL COUNTRIES AND THE SPECULATORS FEEL THAT GERMANY IS NOT WILLING TO CUT RATES IN ORDER TO COORDINATE POLICY SAID ROBIN CHEUNG A VICE PRESIDENT AT UNIBANK A DANISH BANK 9307160037 930716 LILA WALLACE FUND AWARDS 4 MILLION TO ARTS GROUPS NEW YORK THE LILA WALLACEREADER'S DIGEST FUND AWARDED A 4 MILLION GRANT FOR A NEW PROGRAM TO HELP ARTS GROUPS PLAN AND MANAGE SUCH FACILITIES AS CONCERT HALLS AND GALLERIES THE MONEY WAS AWARDED TO THE NONPROFIT FACILITIES FUND A NEW YORK ORGANIZATION FOCUSING ON THE FINANCE DEVELOPMENT AND MANAGEMENT OF PHYSICAL FACILITIES FOR NONPROFITS THE NEW PROJECT GREW FROM A 1992 STUDY BY THE NONPROFIT FACILITIES FUND THAT FOUND ARTS FACILITIES ARE OFTEN POORLY PLANNED COSTLY AND GRANDER THAN NECESSARY THE STUDY CONCLUDED THAT ARTS GROUPS REQUIRE 270 IN ASSETS TO GENERATE ONE DOLLAR IN ANNUAL REVENUEMAKING CULTURE MORE ASSETINTENSIVE THAN THE US STEEL INDUSTRY THE MAIN BENEFICIARIES OF THE NEW PROGRAM CALLED THE CULTURAL FACILITIES FUND WILL BE GROUPS WITH BUDGETS OF 10 MILLION OR LESS ALTHOUGH LARGER ORGANIZATIONS WILL ALSO BE AIDED THE LILA WALLACE FUND NAMED AFTER THE COFOUNDER OF READER'S DIGEST MAGAZINE IS A LEADING PRIVATE DONOR TO THE ARTS IN THE US IT HAD ASSETS OF 8675 MILLION AT THE END OF 1992 AWARDING 583 MILLION IN NEW GRANTS THAT YEAR 9307160036 930716 BUSINESS BRIEF BAUSCH & LOMB INC CONCERN POSTS 15 INCREASE IN NET FOR SECOND QUARTER BAUSCH & LOMB INC REPORTED SECONDQUARTER NET OF 47 MILLION OR 78 CENTS A SHARE ON SALES OF 4794 MILLION THE EARNINGS ARE UP 15 FROM A YEAR EARLIER WHEN ROCHESTER NYBASED BAUSCH REPORTED NET OF 41 MILLION OR 68 CENTS A SHARE ON SALES OF 4475 MILLION THE CONTACT LENS PERSONAL HEALTH CARE AND MEDICAL PRODUCTS CONCERN SAID WEAK SALES IN EUROPE AND MODEST SALES IN JAPAN WERE OFFSET BY INCREASED SALES IN THE US AND WESTERN HEMISPHERE THE BIGGEST GAINS CAME FROM BAUSCH'S PERSONAL HEALTHCARE BUSINESS SALES OF ORALCARE PRODUCTS JUMPED 20 ON SHARPLY IMPROVED SALES OF THE INTERPLAK TOOTHBRUSH AND THE INTRODUCTION OF CLEAR CHOICE MOUTHWASH IN THE US IN THE MEDICAL BUSINESS OVERALL CONTACT LENS SALES ROSE ONLY 5 EVEN THOUGH SALES OF DISPOSABLE AND FREQUENT REPLACEMENT LENSES SURGED 70 OVER YEARAGO LEVELS 9307160035 930716 TECHNOLOGY US SURGICAL REPORTS A LOSS OF 22 MILLION BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US SURGICAL CORP POSTED A WIDERTHANEXPECTED LOSS FOR THE SECOND QUARTER SENDING ITS SHARES FALLING 13 THE NORWALK CONN COMPANY WHICH MAKES SURGICAL STAPLES AND EQUIPMENT USED IN MINIMALLY INVASIVE SURGICAL PROCEDURES REPORTED A NET LOSS OF 22 MILLION OR 39 CENTS A SHARE COMPARED WITH A PROFIT OF 348 MILLION OR 58 CENTS A SHARE A YEAR EARLIER SALES FELL 25 TO 229 MILLION THE NUMBERS ARE SIGNIFICANTLY WORSE THAN WE HAD EXPECTED SAID JONATHAN OSGOOD ANALYST AT ALEX BROWN & CO WE FELT IF THERE WERE GOING TO BE A SURPRISE IT WOULD BE IN THE NEGATIVE DIRECTION IT CERTAINLY WAS IN A STATEMENT CHAIRMAN LEON C HIRSCH SAID THE RESULTS REFLECT HIGHERTHANANTICIPATED INVENTORIES ON HOSPITAL SHELVES AND PRICING PRESSURE REASONS THE COMPANY CITED EARLY LAST MONTH WHEN IT FORECAST A LOSS MR HIRSCH SAID THAT THE THIRD QUARTER WILL SHOW IMPROVEMENT AND THAT THERE WILL BE FURTHER IMPROVEMENT IN THE FOURTH QUARTER AS HOSPITALS USE UP THEIR INVENTORIES AND BEGIN REORDERING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING US SURGICAL'S STOCK PLUNGED 3625 TO 24 A SHARE MR HIRSCH AND OTHER OFFICIALS WERE MEETING WITH STOCK ANALYSTS LATE YESTERDAY AFTERNOON AND WEREN'T AVAILABLE TO COMMENT FURTHER ALEX BROWN'S MR OSGOOD WASN'T AT THE MEETING BUT HE SAID HE WOULDN'T BE SURPRISED IF THE COMPANY POSTS ANOTHER LOSS IN THE THIRD QUARTER THE COMPANY SWITCHED TO A NEW SOCALLED JUSTINTIME INVENTORY DISTRIBUTION SYSTEM EARLIER THIS YEAR A MOVE THAT HAS RESULTED IN A SHARP DROPOFF IN SALES AS HOSPITALS HELD OFF PURCHASE WHILE THEY USED UP EXISTING SUPPLIES BUT ESTIMATING THE EXTENT OF UNUSED INVENTORY HAS PROVED DIFFICULT ESPECIALLY IN THE FACE OF SEVERE PRICE COMPETITION FROM JOHNSON & JOHNSON'S ETHICON UNIT I DON'T THINK THE COMPANY HAS A TERRIBLY GOOD HANDLE ON WHAT'S HAPPENING MR OSGOOD SAID HE EXPECTS THE EFFECT OF THE INVENTORY SWITCH TO EASE SOON BUT THINKS THE PRICE COMPETITION AND A LOSS OF MARKET SHARE TO ETHICON MAY BE GREATER THAN GENERALLY PERCEIVED 9307160034 930716 BUSINESS BRIEF HASBRO INC TOY MAKER SAYS NET INCOME ROSE 19 IN SECOND QUARTER HASBRO INC SELLING MORE DINOSAUR TOYS TIED TO POP CULTURE REPORTED SECONDQUARTER NET INCOME ROSE 19 TO 272 MILLION OR 30 CENTS A SHARE IN THE SECOND QUARTER FROM 227 MILLION OR 26 CENTS A YEAR EARLIER BOOSTED BY BARNEY AND JURASSIC PARK TOYS REVENUE ROSE 61 TO 5155 MILLION FROM 4860 MILLION REVENUE AND EARNINGS WERE EACH RECORDS DESPITE THE GAINS RESULTS WERE HURT BY RECESSION AND UNFAVORABLE CURRENCY TRANSLATIONS IN EUROPE SAID ALAN HASSENFELD CHIEF EXECUTIVE OFFICER OF THE PAWTUCKET RI COMPANY REVENUE WOULD HAVE BEEN 12 MILLION HIGHER WITHOUT THE STRONG DOLLAR'S DILUTION OF REPORTED SALES MADE IN EUROPEAN CURRENCIES FOR THE SIX MONTHS HASBRO REPORTED NET OF 537 MILLION OR 60 CENTS A SHARE UP 16 FROM 461 MILLION OR 52 CENTS IN 1992'S FIRST HALF REVENUE ROSE 68 TO 1 BILLION FROM 9385 MILLION 9307160033 930716 NEW YORK TIMES BUYBACK PLAN NEW YORK NEW YORK TIMES CO INCREASED ITS STOCK BUYBACK PROGRAM TO AS MUCH AS 150 MILLION IN ANTICIPATION OF ITS ACQUISITION OF AFFILIATED PUBLICATIONS INC PARENT OF THE BOSTON GLOBE THE PUBLISHING AND INFORMATIONSERVICES COMPANY SAID IT HAS ALREADY SPENT 9996 MILLION OF THE 100 MILLION ORIGINALLY AUTHORIZED UNDER THE STOCK REPURCHASE PROGRAM ANNOUNCED JUNE 21 THE PUBLICLY TRADED CLASS A SHARES REPURCHASED WILL BE USED FOR THE COMPANY'S STOCKBASED EMPLOYEEBENEFITS PLANS AND FOR OTHER CORPORATE PURPOSES AS REPORTED THE COMPANY'S BUYBACK PLAN AS AN EFFORT TO SUPPORT THE TIMES'S STOCK PRICE IS IMPORTANT BECAUSE THE COMPLETION OF THE AFFILIATED DEAL IS CONTINGENT ON THE MARKET PRICE OF TIMES SHARES STAYING ABOVE 22 THE SHARES CLOSED YESTERDAY AT 24375 UP 125 CENTS IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING 9307160032 930716 BUSINESS BRIEF TEXAS UTILITIES CO UNIT TO REDEEM FOUR SERIES OF PREFERRED STOCK AUG 5 TEXAS UTILITIES ELECTRIC A UNIT OF TEXAS UTILITIES CO SAID IT WAS REDEEMING ON AUG 5 FOUR SERIES OF PREFERRED STOCK THE DALLAS COMPANY IS REDEEMING ALL 440000 SHARES OF ITS 10 PREFERRED AT 105 A SHARE PLUS ACCRUED AND UNPAID DIVIDENDS TEXAS UTILITIES IS REDEEMING ALL 266000 SHARES OF ITS 1008 PREFERRED AT 10504 A SHARE IT'S REDEEMING ALL 300000 SHARES OF ITS 936 PREFERRED AT 10234 A SHARE AND ALL 300000 SHARES OF ITS 932 PREFERRED AT 10233 A SHARE IT WILL ALSO PAY ACCRUED AND UNPAID DIVIDENDS 9307160031 930716 BUSINESS BRIEF REEBOK INTERNATIONAL LTD AVIA UNIT SUES RIVAL HYDE OVER NO 1 FOOTWEAR TITLE THE AVIA UNIT OF REEBOK INTERNATIONAL LTD SUED HYDE ATHLETIC INDUSTRIES INC ALLEGING THAT IT LAID FALSE CLAIM TO THE TITLE OF NO1RANKED SHOE IN CONSUMER REPORTS MAGAZINE IN ITS SUIT FILED IN THE US DISTRICT COURT IN NEW YORK AVIA SAID THE JULY ISSUE OF THE MAGAZINE LISTS ITS AVIA 382 MODEL AS THE BEST WOMEN'S WALKING SHOE AND NOT HYDE'S SAUCONY INSTEP AS HYDE ALLEGEDLY CLAIMED AVIA SAID THE CLAIMS WERE MADE IN A USA TODAY AD AND IN RECENT SALES PITCHES WITH RETAILERS AVIA'S SHOE WAS IN FACT THE TOPLISTED MODEL IN THE WOMEN'S WALKING CATEGORY IN THE MEN'S CATEGORY AVIA'S 332 MODEL RANKED SECOND TO THE NIKE AIR ESSENTIAL IN ITS COMPLAINT PORTLAND OREBASED AVIA SAID THAT LAST YEAR SAUCONY REVENUES INCREASED MORE THAN 23 MILLION FOLLOWING A SIMILAR ARTICLE IN CONSUMER REPORTS THAT NAMED A SAUCONY SNEAKER AS THE NO 1 RUNNING SHOE TESTED AVIA ASKED THE COURT TO ENJOIN HYDE FROM MAKING THE CLAIMS AND IS SEEKING DAMAGES OF MORE THAN 1 MILLION PLUS INTEREST LEGAL COSTS AND CORRECTIVE ADS HYDE BASED IN PEABODY MASS SAID IT WILL CONTEST THE SUIT IN COURT 9307160030 930716 BUSINESS BRIEF AMSCO INTERNATIONAL INC STOCK DROPS 21 ON NEWS OF 2NDPERIOD NET DECLINE AMSCO INTERNATIONAL INC'S STOCK PLUNGED 21 YESTERDAY AFTER THE MEDICALEQUIPMENT MAKER SAID IT WOULD TAKE A SECONDQUARTER RESTRUCTURING CHARGE AND WOULD REPORT SHARPLY LOWER EARNINGS FOR THE PERIOD WHICH ENDED JULY 4 THE PITTSBURGH COMPANY BLAMED THE POOR PERFORMANCE ON UNCERTAINTY ON THE DIRECTION OF NATIONAL HEALTHCARE REFORM IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMSCO CLOSED AT 1250 DOWN 325 AMSCO SAID IT EXPECTS TO POST NET INCOME OF 14 MILLION OR FIVE CENTS A SHARE AFTER A RESTRUCTURING CHARGE OF 22 MILLION OR SEVEN CENTS A SHARE IN THE YEAREARLIER QUARTER AMSCO HAD NET OF 82 MILLION OR 26 CENTS A SHARE SALES WILL BE ABOUT 1188 MILLION COMPARED WITH 122 MILLION THE ESTIMATE FOR THE LATEST QUARTER INCLUDED A LOSS OF 33 MILLION OR 10 CENTS A SHARE FROM AMSCO'S INVESTMENT IN ITS AMSCO STERILE RECOVERIES UNIT A YEAR AGO AMSCO HAD A LOSS OF 900000 OR THREE CENTS A SHARE FROM THE INVESTMENT 9307160029 930716 BUSINESS BRIEF COMPAQ COMPUTER CORP SOME NOTEBOOK PRODUCTION TO BE MOVED FROM CITIZEN COMPAQ COMPUTER CORP HOUSTON SAID IT PLANS TO TRANSFER SOME OF ITS NOTEBOOKCOMPUTER MANUFACTURING BUSINESS AWAY FROM JAPAN'S CITIZEN WATCH CO BY THE FIRST QUARTER OF 1994 COMPAQ SAID THE LTELITE NOTEBOOK MACHINES NOW ASSEMBLED BY CITIZEN WILL BE SHIFTED TO COMPAQ'S OWN MANUFACTURING OPERATIONS IN SINGAPORE A COMPAQ SPOKESWOMAN SAID THE MOVE IS INTENDED TO TAKE ADVANTAGE OF AVAILABLE CAPACITY AT THE SINGAPORE PLANT WHICH ALREADY MAKES COMPAQ'S CONTURA LINE OF NOTEBOOK PCS THE SPOKESWOMAN SAID THE MOVE ISN'T THE RESULT OF QUALITY OR MANUFACTURING PROBLEMS AT CITIZEN WHICH WILL CONTINUE TO SUPPLY COMPAQ FLOPPY DISK DRIVES AND OTHER KEY COMPONENTS CITIZEN SAID IT ASSEMBLES BETWEEN 20000 AND 20500 LTELITE MACHINES FOR COMPAQ EVERY MONTH 9307160028 930716 BUSINESS BRIEF LION NATHAN LTD OPERATING PROFIT TO RISE 15 IN THE CURRENT FISCAL YEAR LION NATHAN LTD A NEW ZEALANDBASED BREWING CONCERN FORECASTS THAT OPERATING PROFIT AFTER TAX WILL RISE ABOUT 15 TO 134 MILLION NEW ZEALAND DOLLARS US736 MILLION IN ITS FISCAL YEAR ENDING AUG 31 FROM NZ117 MILLION LAST FISCAL YEAR THE PROJECTION IS CONTAINED IN AN INFORMATION MEMORANDUM USED BY LION NATHAN WEDNESDAY TO RAISE NZ2592 MILLION IN AN UNDERWRITTEN PLACEMENT OF SHARES LION NATHAN EXPECTS OPERATING PROFIT BEFORE INTEREST AND TAX TO RISE NZ81 MILLION MORE THAN OFFSETTING A NZ63 MILLION INCREASE IN INTEREST COSTS THE COMPANY ALSO PROJECTS OPERATING PROFIT AFTER TAX WILL RISE A FURTHER 39 TO NZ186 MILLION IN THE YEAR ENDING AUG 31 1994 THIS FIGURE ASSUMES THE NZ2592 MILLION IS USED TO CUT DEBT THE PROJECTIONS INCLUDE PROVISIONS FOR AMORTIZATION OF GOODWILL OF NZ16 MILLION IN EACH YEAR 9307160027 930716 MARKETING & MEDIA FCC PLAN ON CABLETV FEES ALLOWS REASONABLE RETURN WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION PROPOSED WAYS TO REGULATE CABLETELEVISION RATES BASED ON CABLE OPERATORS' COSTS OF PROVIDING SERVICE THE FCC PLAN FOLLOWS THE AGENCY'S APRIL 1 DECISION TO ESTABLISH BENCHMARK PRICES FOR CABLETELEVISION SERVICE WHICH WERE ESTIMATED TO CUT CABLE RATES NATIONWIDE BY ABOUT 1 BILLION AT THE SAME TIME THE AGENCY GAVE OPERATORS THE OPTION OF FILING COST DATA WITH THE COMMISSION TO JUSTIFY RATES THAT EXCEEDED THE BENCHMARK DETAILS ARE EXPECTED TO BE HAMMERED OUT AFTER THE COMMISSION RECEIVES PUBLIC COMMENTS ON ITS PROPOSAL IN THE MEANTIME THE FCC PLANS TO BEGIN ENFORCING THE CABLE RATE RULES OCT 1 ALTHOUGH IT HAS BEEN UNDER INTENSE PRESSURE FROM LAWMAKERS TO MOVE UP THAT DATE 9307160026 930716 BUSINESS BRIEF SUNDSTRAND CORP DISCOURAGING FORECAST SENDS COMPANY'S SHARES LOWER SUNDSTRAND CORP ISSUED A DISCOURAGING EARNINGS FORECAST EVEN AS IT REPORTED SECONDQUARTER EARNINGS THAT MARKED AN UPTURN FROM THE YEARAGO PERIOD'S RESULTS THE ROCKFORD ILL AIRCRAFT PARTS MAKER'S STOCK SLID 2 OR 5 TO 39 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AS INVESTORS REACTED TO THE COMPANY'S DISCLOSURE THAT IT IS DISAPPOINTED WITH THE OVERALL LEVEL OF OUR EARNINGS MOMENTUM SUNDSTRAND CITED CONTINUED SOFTNESS IN THE COMMERCIAL AEROSPACE MARKET AND IN THE SALE OF REPLACEMENT PARTS TO AIRLINES WHEN COMBINED WITH NO SUSTAINED RECOVERY IN ITS INDUSTRIALPARTS MARKET IT SAID SUCH FACTORS ARE LIMITING OUR CAPACITY TO ACHIEVE OUR EARNINGS EXPECTATIONS FOR THE FULL YEAR FOR THE LATEST QUARTER THE COMPANY REPORTED NET OF 198 MILLION OR 55 CENTS A SHARE COMPARED WITH A NET LOSS OF 200000 OR ONE CENT A SHARE YEARAGO RESULTS WERE HURT BY A 204 MILLION AFTERTAX CHARGE TO RESTRUCTURE ITS AEROSPACE SEGMENT 9307160025 930716 DOING THE DEAL THE DEFICITREDUCTION CONFERENCE WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON WILL CAMPAIGN TO SELL HIS ECONOMIC PLAN TO THE PUBLIC THE PRESIDENT EXPECTS TO GIVE A TELEVISED SPEECH BETWEEN THE TIME A HOUSESENATE COMPROMISE IS REACHED AND THE FULL CONGRESS VOTES HE WILL HOLD PRESS CONFERENCES USING SATELLITE TV HOOKUPS AND TRAVEL THE COUNTRY HIS THEME THE PLAN WILL BRING CHANGE TAX FAIRNESS AND ECONOMIC RECOVERY LEAD NEGOTIATORS SEN MOYNIHAN AND REP ROSTENKOWSKI STRESSED THEIR COMMITMENT TO CLINTON'S 500 BILLION DEFICITREDUCTION GOAL AT DINNER WEDNESDAY WITH GORE STRATEGISTS SAY LOWERING THE TARGET WOULD BE SUICIDAL INTEREST RATES WOULD GO UP AND IF WE MOVE OFF THE DEFICIT NUMBER IT WOULD GIVE PEROT AN UNBELIEVABLE OPPORTUNITY SAYS A TOP HOUSE DEMOCRAT CLINTON PROMISES TO GIVE AN HOUR A DAY TO A STAFF EFFORT PROMOTING HIS PACKAGE AND PLANS A SERIES OF DAILY EVENTS KEYED TO INTERESTS LIKE THE ELDERLY ECONOMIC WEAKNESS MAY SHAPE THE FINAL TAX BILL COMPROMISE THE SLOW RECOVERY BOLSTERS CLINTON'S CASE FOR INVESTMENT TAX BREAKS LIKE EASING THE ALTERNATIVE MINIMUM TAX ON CAPITALINTENSIVE FIRMS WITHOUT THEM SAYS KEMPER ECONOMIST DAVID HALE THE BILL MAY LOOK MORE LIKE THE ROSS PEROT PROGRAM WITH A SMALLER GASOLINE TAX HIKE BUT THE SOFT ECONOMY ALSO AIDS GOP ARGUMENTS AGAINST TAX BOOSTS SEN GORTON DUBS THE BTU LEVY THE BIG TIME UNEMPLOYMENT TAX ECONOMIST LAURENCE MEYER FIGURES THE TAX BOOSTS AND SPENDING CUTS WILL SHAVE HALF A PERCENTAGE POINT OFF GROWTH IN 1994 AND 1995 BUT LOW INTEREST RATES SHOULD OFFSET MOST HARM THIS WEEK'S FAVORABLE INFLATION READINGS SHOULD DELAY ANY FED MOVE TO RAISE RATES BIG MONEY TALKS FOR SPECIAL INTERESTS ON THE TAX BILL THE REALESTATE INDUSTRY WHICH DONATED 11 MILLION FOR CONGRESSIONAL CANDIDATES AND PARTY COMMITTEES IN 199192 MOBILIZES TO SECURE PASSIVE LOSS WRITEOFFS HEALTH PROFESSIONALS AND HOSPITALS WHICH THE CENTER FOR RESPONSIVE POLITICS SAYS HAVE GIVEN MORE THAN 20 MILLION WORK TO MINIMIZE CUTS IN MEDICARE REIMBURSEMENTS TO HEALTHCARE PROVIDERS THE RESTAURANT AND BAR INDUSTRY AND ITS WORKERS' UNION WHICH GAVE 29 MILLION STEP UP EFFORTS AGAINST CUTTING THE TAX DEDUCTION FOR BUSINESS MEALS SOME DEMOCRATS COMPLAIN THAT SPECIAL INTEREST LOBBYING VASTLY EXAGGERATES PUBLIC DISCONTENT OVER ENERGY TAXES THE DEMOCRATIC PARTY TARGETS SPECIAL INTERESTS AS ENEMIES OF CHANGE IN NEW RADIO ADS BACKING CLINTON PROGRAM STAND BY YOUR BILL DEMOCRATIC LAWMAKERS ARE ADVISED OF A PARTY POLL SHOWING THE RISK OF OPPOSING THEIR OWN PRESIDENT ASKED TO PICK BETWEEN A DEMOCRAT WHO BACKS CLINTON'S ECONOMIC PLAN AND A REPUBLICAN WHO OPPOSES IT VOTERS PICK THE DEMOCRAT BY 41 TO 37 IF BOTH OPPOSE THE PLAN THE DEMOCRAT'S SUPPORT DROPS BY 15 POINTS NO DISTRACTIONS GORE AND TOP CLINTON AIDES ASSURE CONGRESSIONAL DEMOCRATS THAT THEY WILL BE SINGLEMINDED ON THE DEFICIT PACKAGE CABINET MEMBERS ARE TOLD TO FREE UP TIME TO HELP BUT PROBLEMS LOOM NEXT WEEK HOUSE AND SENATE COMMITTEES TAKE UP THE MILITARY BUDGET AND THE GOP WILL STAGE BIG DEBATES ON THE GAY ISSUE TEST RUN HEALTH GROUPS WATCH CLINTON'S STANCE ON MEDICARE CUTBACKS FOR CLUES TO HIS RESOLVE ON HEALTHCARE REFORM IF THE ADMINISTRATION GOES BEYOND THE HOUSE BILL'S 50 BILLION IN CUTS WE'D BE VERY DISAPPOINTED BECAUSE THEY'VE ASSURED US THEY SUPPORT KEEPING IT TO THAT SAYS THE AMERICAN HOSPITAL ASSOCIATION'S RICK WADE BYRD WATCHERS UNABLE TO FILIBUSTER THE TAX BILL SENATE REPUBLICANS EYE THE BYRD RULE TO GAIN LEVERAGE THE RULE ALLOWS SENATORS TO DEMAND THAT EXTRANEOUS PROVISIONS BE DELETED UNLESS 60 SENATORS BACK THEM THERE ARE 56 DEMOCRATS THE GOP COUNTS 242 SUCH PROVISIONS IN THE HOUSE BILL AND 55 IN THE SENATE VERSION FLOOD WATERS ROIL THE DEBATE OVER SLASHING AGRICULTURE SPENDING ESTIMATES OF CROP DAMAGE EXCEEDING 1 BILLION UNDERCUT EFFORTS TO TRIM CROP INSURANCE COSTS NOW FARM GROUPS HOPE THE FLOOD DISASTER WILL HELP SWAY BUDGET CUTTERS TO GO EASIER ON AGRICULTURE PRODUCERS OF MAJOR CROPS LIKE WHEAT CORN AND RICE PUSH TO BLOCK A HOUSE PROPOSAL TO RAISE 196 BILLION BY REDUCING COMMODITYPROGRAM BENEFITS OTHERS LOBBY TO UP THE AG BUDGET THE COALITION ON HUMAN NEEDS WILL MEET TODAY TO MAP A PUSH FOR THE HOUSEPASSED 71 BILLION RISE IN FOOD STAMPS SPENDING OVER FIVE YEARS IF WE END UP WITH A TRANSPORTATION FUELS TAX AN EXEMPTION IS VITAL FOR FARM EQUIPMENT SAYS BRUCE KNIGHT OF THE WHEAT GROWERS MINOR MEMOS ROBERT JULIANO A LOBBYIST OPPOSING A CUT IN THE MEAL TAX DEDUCTION ESCORTED SISTER ROSEMARY CONNELLY TO SEE REP ROSTENKOWSKI AND IMPLORED THE NUN SAY A PRAYER FOR ME THE CHAMBER OF COMMERCE ISSUES A PRESS RELEASE OPPOSING THE BUDGET BILL AFTER HOUSE REPUBLICANS CIRCULATE A LETTER URGING A BOYCOTT OF THE GROUP'S AWARD CEREMONY BECAUSE THE ORGANIZATION WASN'T HELPING TO KILL THE BILL 9307160024 930716 HEARD ON THE STREET DEPRESSED AD AGENCIES ATTRACT HANDFUL OF VALUE' STOCKPICKERS BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL MAGAZINE ADVERTISING IS IN THE DOLDRUMS IT PROBABLY WON'T PERK UP SOON PRESSURE ON BRANDNAME COMPANIES COULD LEAD TO FURTHER CUTS IN AD BUDGETS THAT'S THE KIND OF GLOOMY TALK CIRCULATING ON WALL STREET SOUND LIKE A GOOD CLIMATE IN WHICH TO BUY ADAGENCY STOCKS MAYBE NOT FOR MOST INVESTORS BUT TO A HANDFUL OF VALUE STOCKPICKERS WHO DEARLY LOVE A BARGAIN THE DEPRESSED STOCKS LOOK TOO TEMPTING TO PASS UP TOP BILLING IS GIVEN BY THE BARGAINHUNTERS TO INTERPUBLIC GROUP AND OMNICOM TWO HUGE ADVERTISING FIRMS THE OUTLOOK ISN'T NEARLY AS BAD AS EVERYONE THINKS SAYS LAWRENCE MARX A PORTFOLIO MANAGER WITH NEUBERGER & BERMAN HE HAS BEEN BUYING BOTH STOCKS RECENTLY AS THEY HAVE FALLEN IN PRICE ADAGENCY STOCKS AS A GROUP ARE DOWN SHARPLY FROM YEAREND AS THE NEARBY CHART SHOWS BUT AFTER A STRING OF LOSING DAYS INTERPUBLIC ROSE 5/8 YESTERDAY TO 26 1/8 WHILE OMNICOM WAS UNCHANGED AT 39 1/4 INTERPUBLIC GROUP IS A HOLDING COMPANY FOR POWERHOUSE AGENCIES MCCANNERICKSON AND LINTAS GROUP OMNICOM'S FIRMS INCLUDE BBDO AND DDB NEEDHAM CLIENT LISTS OF BOTH FIRMS READ LIKE A WHO'S WHO OF CONSUMERPRODUCTS CONCERNS THE BRANDNAME BEHEMOTHS WHOSE PRODUCTS ARE THREATENED BY LOWPRICED COMPETITION BOTH STOCKS TOOK A BEATING IN APRIL AFTER THE BRANDNAME SCARE ERUPTED IN THE WAKE OF PHILIP MORRIS'S MARLBORO PRICE CUTS ANALYSTS CONJURED UP VISIONS OF BRUTAL PRICE WARS THAT WOULD PROMPT PENNYPINCHING COMPANIES TO SLASH THEIR AD BUDGETS CRIMPING THE FEES THAT ARE PAID TO AD AGENCIES FOR ARRANGING ADVERTISING BUT A SMALL BAND ARGUES THAT THE STOCK MARKET IS ALL WRONG ABOUT THE EFFECT OF THE BRANDNAME DEBACLE ON ADVERTISING AGENCIES INSTEAD OF BEING HURT NEUBERGER'S MR MARX BELIEVES AD AGENCIES ACTUALLY WILL BENEFIT FROM RISING COMPETITION IN THE CONSUMERPRODUCTS AREA HIS REASONING CONSUMERPRODUCTS COMPANIES WILL BE FORCED TO FIGHT INCREASED COMPETITION BY FATTENING THEIR ADVERTISING BUDGETS WHICH MANY HAVE TRIMMED IN RECENT YEARS SUSAN DECKER AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SAYS SHE BELIEVES COMPANIES WILL CUT BACK ON TRADE ADVERTISING INCLUDING MONEY SPENT ON WINNING SHELF SPACE IN FAVOR OF MORE TRADITIONAL ADVERTISING WHICH NOW REPRESENTS 25 OF EVERY MARKETING DOLLAR SPENT THE PROBLEMS THAT MANY MAJOR COMPANIES ARE NOW FACING MAY ACTUALLY BE TRACEABLE TO DIMINISHED BRAND ADVERTISING AND TOO MUCH FOCUS ON SHORTTERM TRADE DEALS SHE SAYS AS COMPANIES REALIZE THIS AND BEGIN TO ADVERTISE MORE SHE SAYS THE AD AGENCY STOCKS WILL BENEFIT THE STOCKS CERTAINLY START FROM A LOW BASE INTERPUBLIC GROUP AND OMNICOM TRADE AT ABOUT 14 TIMES PROJECTED 1994 EARNINGS MS DECKER SAYS THAT'S ROUGHLY A 15 DISCOUNT TO THE OVERALL MARKET BY HER ESTIMATES IT ALSO IS WAY BELOW THE NORMAL RANGE OF THE TWO STOCKS WHICH HAVE TRADED AS HIGH AS A 20 PREMIUM TO THE MARKET AND AS LOW AS A 20 DISCOUNT NORMALLY THEY HOVER RIGHT AROUND THE MARKET'S PRICE/EARNINGS RATIO PROCTER & GAMBLE'S RECENT STRATEGY IS ONE EXAMPLE OF HOW MS DECKER'S THEORY MAY PLAY OUT P&G HAS INITIATED EVERYDAY LOW PRICING OR A LOWER PRICING STRATEGY ON SOME PRODUCTS THIS YEAR SHE SAYS ITS AD BUDGET IS UP DOUBLE DIGITS IN PERCENTAGE TERMS FOLLOWING A SIMILAR INCREASE IN LAST YEAR'S SECOND HALF OF COURSE THERE ARE PLENTY OF SKEPTICS ABOUT THE STATE OF THE ADVERTISING BUSINESS FOR STARTERS ADVERTISING LINAGE IN MAGAZINES WAS FLAT IN THE SECOND QUARTER AFTER A BRIEF RECOVERY IN THE FIRST QUARTER INTERPUBLIC GROUP'S DOMESTIC ADVERTISING REVENUE HAS BEEN SLIPPING IN RECENT MONTHS AND SOME ANALYSTS ESTIMATE THAT THIS US REVENUE WAS ABOUT FLAT IN THE SECOND QUARTER COMPARED WITH A YEAR AGO MAKING MATTERS WORSE INTERPUBLIC GROUP RECENTLY LOST A SIZABLE CHUNK OF THE AD BUSINESS OF COCACOLA ONE OF ITS OLDEST AND BIGGEST CLIENTS TO CREATIVE ARTISTS AGENCY IN FACT ADVERTISING FIRMS NEVER HAVE BEEN A BIG FAVORITE OF WALL STREET ADVERTISING ACCOUNTS ARE CONSIDERED TOO FICKLE A SOURCE OF REVENUE ANALYSTS SAY THOSE CONCERNS ARE OVERSTATED HOWEVER ACCORDING TO MARK GREENBERG OF SCUDDER STEVENS & CLARK A BIG HOLDER OF INTERPUBLIC GROUP LATELY HE HAS BEEN URGING PORTFOLIO MANAGERS AT SCUDDER TO ADD TO THEIR INTERPUBLIC GROUP HOLDINGS I GET ASKED ALL THE TIME BY SCUDDER PORTFOLIO MANAGERS ABOUT THE POSSIBILITY THAT ACCOUNTS WILL SWITCH HE SAYS BUT ACCOUNTS SWITCH MUCH LESS OFTEN THAN INVESTORS THINK THEY DO INTERPUBLIC GROUP MAY HAVE LOST PART OF THE COKE ACCOUNT RECENTLY BUT IT STILL HAS 50YEAR RELATIONSHIPS WITH GENERAL MOTORS AND UNILEVER TO NAME JUST TWO TO THE EXTENT THAT CLIENTS DO SWITCH IN MANY CASES THE BENEFICIARIES WILL BE MAMMOTH AGENCIES SUCH AS INTERPUBLIC GROUP AND OMNICOM WHICH INCREASINGLY ARE SCOOPING UP BUSINESS AS COMPANIES CONSOLIDATE THEIR ACCOUNTS HE SAYS AND AS NEW BRANDS ARE CREATED THE ADVERTISING BUSINESS IS BEING GIVEN TO BIG AGENCIES WHAT'S MORE BECAUSE OF ITS INTERNATIONAL BUSINESS INTERPUBLIC GROUP FOR EXAMPLE WHICH DERIVES ABOUT 50 OF ITS REVENUE FROM INTERNATIONAL ACCOUNTS IS PARTLY INSULATED FROM DEPENDENCE ON DOMESTIC BUSINESS MR MARX HAS ANOTHER REASON FOR LIKING AD STOCKS HE IS DRAWN BY THE HUGE VOLUME OF CASH THESE COMPANIES GENERATE AFTER TAXES AND CAPITAL SPENDING ALL THAT CASH LEFT IN THE BUSINESS CAN BE USED TO ENHANCE SHAREHOLDER VALUE SAYS MR MARX A COMPANY WITH PRODIGIOUS AMOUNTS OF UNINHIBITED CASH FLOW CAN USE THE MONEY TO PAY DIVIDENDS TO SHAREHOLDERS OR MAKE ACQUISITIONS FOR EXAMPLE THIS YEAR INTERPUBLIC GROUP IS EXPECTED TO PRODUCE 185 IN FREE CASH FLOW A SHARE WHILE OMNICOM IS EXPECTED TO PRODUCE 260 A SHARE ROUGHLY THE SAME PERSHARE AMOUNT THAT EACH COMPANY IS EXPECTED TO PRODUCE IN EARNINGS IN THEORY AT LEAST THAT IS GOOD NEWS FOR INVESTORS BECAUSE IT MEANS THE TWO COMPANIES' EARNINGS AREN'T BEING PUMPED UP THROUGH ACCOUNTING EXERCISES THE ROCKBRIDGE SHORT SELLERS INDEX DECLINED 13 IN THE SECOND QUARTER LEAVING IT UP JUST 16 FOR THE FIRST SIX MONTHS OF THIS YEAR THE INDEX COMPILED BY ROCKBRIDGE PARTNERS OF CHARLOTTE NC AN INVESTMENT PARTNERSHIP THAT INVESTS WITH SHORTSELLING MANAGERS MEASURES THE AVERAGE PERFORMANCE OF 20 LEADING SHORTSELLING FIRMS SHORT SELLERS TRY TO PROFIT BY ANTICIPATING DECLINES IN SELECTED STOCKS THEY BORROW STOCK AND SELL IT WITH THE PROCEEDS IMMEDIATELY CREDITED TO THEIR ACCOUNTS EVENTUALLY THEY MUST BUY SHARES TO REPLACE THE BORROWED ONES BUT IF THE STOCK FALLS IN THE MEANTIME THEY PROFIT THE SHORT SELLERS' RESULTS FALL SHORT OF THOSE ACHIEVED BY PEOPLE WHO SIMPLY BOUGHT AND HELD A BASKET OF STOCKS SUCH AS THE STANDARD & POOR'S 500STOCK INDEX THE S&P 500 WAS UP 488 INCLUDING DIVIDENDS THROUGH JUNE AND IT GAINED 049 IN THE SECOND QUARTER SOME SHORTS OF COURSE ARE DOING BETTER THAN OTHERS THOSE SHORT RESTAURANTS AND GAMING STOCKS DID POORLY IN THE BEGINNING OF THE QUARTER BUT RECOVERED THESE LOSSES AS THE QUARTER ENDED SAYS MICHAEL R LONG GENERAL PARTNER AT ROCKBRIDGE THE OPPORTUNISTIC EVENTDRIVEN SHORTS ARE DOING ALL RIGHT HE SAYS WHILE THE LESS ACTIVE VALUATIONBASED SHORT SELLERS CONTINUE TO ENCOUNTER PROBLEMS IN THE FIVE YEARS THROUGH SEPTEMBER 1990 THE SHORT SELLERS TRACKED BY ROCKBRIDGE HAD TURNED IN GAINS OF MORE THAN 30 A YEAR BUT SINCE THEN THEY HAVE HIT A WALL IN THE THREEYEAR PERIOD THROUGH JUNE 30 THE SHORTS HAVE AVERAGED LOSSES OF 45 A YEAR ROCKBRIDGE SAYS 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 9307160023 930716 WHO'S NEWS REN CORP CHAIRMAN RESIGNS SELLS 4 STAKE TO A UNIT OF GAMBRO NASHVILLE TENN REN CORPUSA WHICH OPERATES DIALYSIS SERVICE CENTERS AND TESTS BLOOD SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESIGNED AND IS SELLING HIS 4 STAKE IN THE COMPANY JEROME S TANNENBAUM 43 YEARS OLD HAS RESIGNED AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT HIS WIFE ELIZABETH 37 HAS RESIGNED AS VICE PRESIDENT OF ADMINISTRATION THE TANNENBAUMS' 700000 SHARES ARE BEING BOUGHT BY COBE LABORATORIES A DENVERBASED UNIT OF SWEDISH MEDICAL EQUIPMENT MAKER GAMBRO AB THE COMPANY IS PAYING AN ABOVEMARKET PRICE FOR THE SHARES MR TANNENBAUM SAID BUT HE WOULDN'T SPECIFY THE AMOUNT LAST FALL COBE BOUGHT 55 MILLION NEWLY ISSUED REN SHARES INCREASING ITS OWNERSHIP TO ABOUT 51 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY REN SHARES WERE QUOTED AT 11 UP 375 CENTS MR TANNENBAUM SAID HE AND MRS TANNENBAUM HAVE SIGNED AN AGREEMENT NOT TO COMPETE WITH REN FOR THE NEXT THREE YEARS BUT THEY HOPE TO ENTER ANOTHER TYPE OF BUSINESS HE SAID HE WILL WORK AS A CONSULTANT TO REN FOR THREE YEARS THIS WAS A NATURAL TRANSITION A FRIENDLY PARTING OF WAYS MR TANNENBAUM SAID WEDNESDAY WE'VE GOT AN EXCELLENT MANAGEMENT TEAM AND IT'S MY UNDERSTANDING THERE WILL BE NO CHANGES IN THAT STRUCTURE LAWRENCE J CENTELLA A REN DIRECTOR HAS BEEN APPOINTED CHIEF EXECUTIVE OFFICER AND PRESIDENT MR CENTELLA 52 HAD BEEN PRESIDENT OF COBE RENAL CARE INC A UNIT OF COBE LABORATORIES MATS WAHLSTROM 39 WAS NAMED CHAIRMAN MR WAHLSTROM WILL CONTINUE AS EXECUTIVE VICE PRESIDENT OF GAMBRO AND PRESIDENT OF COBE LABORATORIES MRS TANNENBAUM'S POSITION HASN'T BEEN FILLED 9307160022 930716 BUSINESS BRIEF ENRON 2NDQUARTER NET JUMPED 21 COMPANY DECLARES 2FOR1 STOCK SPLIT HOUSTON ENRON CORP THE NATION'S LARGEST NATURALGAS COMPANY SAID IMPROVED RESULTS FROM ITS PIPELINES AND GAS PRODUCTION BUSINESSES HELPED BOOST SECONDQUARTER NET INCOME 21 ENRON ALSO DECLARED A 2FOR1 COMMON STOCK SPLIT PAYABLE AUG 16 TO HOLDERS OF RECORD JULY 26 THE COMPANY WHICH HAD AN AVERAGE OF 1189 MILLION SHARES OUTSTANDING IN THE SECOND QUARTER SAID ITS STRATEGY IS TO ENCOURAGE ADDITIONAL TRADING IN THE SHARES AT THE RESULTING LOWER PRICEAS IS OFTEN THE CASE IN SUCH MOVES ENRON SAID NET INCOME ROSE TO 612 MILLION OR 48 CENTS A SHARE FROM 506 MILLION OR 42 CENTS A SHARE THE PERSHARE FIGURES REFLECT AN INCREASE OF 12 IN THE AVERAGE NUMBER OF SHARES OUTSTANDING FROM 1065 MILLION A YEAR AGO THE LATEST QUARTER'S RESULTS INCLUDED EARNINGS OF 3 MILLION OR THREE CENTS A SHARE FROM DISCONTINUED OPERATIONS IN THE YEAREARLIER QUARTER ENRON'S NET INCOME INCLUDED A GAIN OF 184 MILLION OR 17 CENTS A SHARE FROM THE SALE OF MOBIL CORP STOCK THE YEARAGO RESULTS ALSO INCLUDED A GAIN OF 33 MILLION OR THREE CENTS A SHARE FROM THE SALE OF CERTAIN OIL AND GAS PROPERTIES EARNINGS OF 14 MILLION OR ONE CENT A SHARE FROM DISCONTINUED OPERATIONS AND A LOSS OF 800000 OR ONE CENT A SHARE FROM THE EARLY RETIREMENT OF DEBT EXCLUDING THE VARIOUS ONETIME GAINS AND THE YEAREARLIER LOSS ENRON'S PROFIT ROUGHLY DOUBLED REVENUE ROSE 45 TO 190 BILLION FROM 131 BILLION ENRON'S EARNINGS WERE GENERALLY IN LINE WITH ANALYSTS' EXPECTATIONS IN TRADING YESTERDAY AFTERNOON ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S STOCK WAS QUOTED AT 6475 DOWN 175 FOR THE FIRST SIX MONTHS ENRON'S NET INCOME ROSE 25 TO 2075 MILLION OR 167 A SHARE FROM 1663 MILLION OR 148 A SHARE IN ADDITION TO THE ONETIME ITEMS OCCURRING IN THE SECOND QUARTERS OF 1993 AND 1992 THE YEAREARLIER SIX MONTHS INCLUDED A GAIN OF 104 MILLION OR 10 CENTS A SHARE FROM THE SALE OF MOBIL CORP STOCK REVENUE FOR THE SIX MONTHS ROSE 36 TO 374 BILLION FROM 280 BILLION 9307160021 930716 LEISURE & ARTS BOOKSHELF AN AD MAN WITHOUT AN ANCHOR BY LAURIE MUCHNICK WHEN GENE TROWBRIDGE WAS A YOUNG MAN JUST EMBARKING ON HIS CAREER IN ADVERTISING HE AND HIS PARTNER A VOLUPTUOUS SINGLE WOMAN NAMED DOROTHY WERE HANDED A PLUM ASSIGNMENT SELL AMERICA THE SECRETARY OF COMMERCE HAD HIRED TROWBRIDGE'S FIRM TO PERSUADE FOREIGN TOURISTS TO MAKE THE US THEIR VACATION DESTINATION AND TROWBRIDGE'S BOSS THOUGHT IT WOULD BE A SIMPLE TASK AFTER ALL WHAT A PRODUCT FOLLOWING SEVERAL FALSE STARTS AND PERHAPS DISTRACTED BY THEIR SIMMERING ATTRACTION FOR EACH OTHER GENE AND DOROTHY PRODUCED WHAT CAME TO BE KNOWN AS THE LIBERTY CAMPAIGN UNDER THE HEADLINE SWEET LAND OF LIBERTY THE ADS SHOWED JAPANESE BUSINESSMEN OGLING SEXY BLONDES AND LONDON BANKERS RIDING MOTORCYCLES TOURISM INCREASED BY 11 AND THE CAMPAIGN WON SEVERAL AWARDS GENE BEGAN CLIMBING THE COMPANY LADDER MOVING UP TO CREATIVE DIRECTOR AND FINALLY SENIOR VICE PRESIDENT A POSITION IN WHICH HE WAS BOTH RESPECTED AND FEARED WHEN WE MEET GENE AT THE BEGINNING OF THE LIBERTY CAMPAIGN DOUBLEDAY 320 PAGES 22 JONATHAN DEE'S SECOND NOVEL HE IS APPROACHING HIS 65TH BIRTHDAY AND IMMINENT RETIREMENT HE LIVES HARMONIOUSLY WITH HIS WIFE ELLIE IN A PROSPEROUS TOWN ON THE SOUTH SHORE OF LONG ISLAND HE TRADES SMALL TALK AND BARBECUES WITH HIS NEIGHBORS AND JOINS IN SUCH LOCAL TRADITIONS AS THE FOURTH OF JULY PARADE TO ROUND OUT THIS QUINTESSENTIALLY AMERICAN FAMILY GENE'S SON JACK IS A PROFESSIONAL BASEBALL PLAYER A FACT THAT GENERATES ADMIRATION AMONG ALL THE MEN GENE MEETS IT'S UNUSUAL TO READ ABOUT A MAN LIKE GENE ESPECIALLY IN A BOOK WRITTEN BY A 31YEAROLD RECENT FICTION DOESN'T INCLUDE MANY SUCCESSFUL UPPERMIDDLECLASS MEN MEN WHO HAVE REACHED THE TOP OF THE EXECUTIVE HEAP GENE IS NEITHER THE INTERNATIONAL MAGNATE WE MIGHT MEET IN A ROMANCE NOVEL NOR THE FRUSTRATED MIDDLE MANAGER OF A BOOK LIKE JOSEPH HELLER'S SOMETHING HAPPENED HE'S GONE AS FAR AS HE CAN GO CAREERWISE MR DEE HAS DONE A REMARKABLE JOB IN IMAGINING A VOICE FOR GENE SATISFIED BUT NOT SMUG SECURE AND HAPPY WITH THE TRAPPINGS OF POWER BUT MR DEE IS INTERESTED IN FAR MORE THAN THE ACCOUTERMENTS OF GENE'S EXISTENCE AS IN HIS FIRST NOVEL THE LOVER OF HISTORY HE EXPLORES THE AREA IN WHICH PRIVATE AND PUBLIC LIFE MEET CAREFULLY EXAMINING THE LIMITS OF INDIVIDUALISM AND PROBING FOR THAT MOMENT WHEN EACH PERSON IS FORCED TO ACKNOWLEDGE HIS OR HER CONNECTION TO THE REST OF THE WORLD IN GENE'S CASE IT COMES SIGNIFICANTLY ON INDEPENDENCE DAY BEFORE HE LEAVES FOR THE PARADE A REPORTER APPROACHES HIM ASKING QUESTIONS ABOUT ONE OF HIS NEIGHBORS ALBERT FERDINAND A RELATIVE NEWCOMER WHO KEEPS PRETTY MUCH TO HIMSELF SPURRED BY CURIOSITY GENE BEFRIENDS FERDINAND AND HE GROWS TO LIKE HIM VERY MUCH BEFORE HIS SECRET IS BROADCAST IN THE PAGES OF NEWSDAY FERDINAND IS ACCUSED OF BEING A FORMER BRAZILIAN ARMY OFFICER WHO TORTURED CIVILIANS IN THE '60S AS GENE STRUGGLES WITH HIS FEELINGS FOR FERDINAND HE IS ALSO BUSY LOOKING BACK OVER HIS YEARS IN ADVERTISING MR DEE GIVES US AN ENLIGHTENING LOOK AT THE AD BIZ AND AT THE WAY IT HAS CHANGED IN THE PAST 20 YEARS WHEN GENE STARTED OUT AS A COPYWRITER THE POINT OF THE AD WAS TO IMPART FACTS INFORMATION NOWADAYS SAYS GENE IMAGE IS ALL THE QUALITY OF THE AD RATHER THAN OF WHAT IT ADVERTISES IS THE IMPORTANT THING THE HIGH ESTEEM IN WHICH PEOPLE HOLD SAY A NIKE BASKETBALL SNEAKER IS SIMPLY A MATTER OF REFLECTED GLORY FOR THE SPECTACULARLY CREATIVE ADS FOR IT I'D GO SO FAR AS TO SAY THAT NIKE'S SALES ARE DIRECTLY A REWARD FOR THE PLEASURE GIVEN BY THE ADS THEY HAVE COMMISSIONED THESE REFLECTIONS ON ADVERTISING TIE IN NEATLY TO MR DEE'S LARGER POINT ABOUT GENE AND FERDINAND WHEN THINKING ABOUT HIS WORK ON THE LIBERTY CAMPAIGN FOR INSTANCE GENE RECALLS HIS BOSS'S ADVICE ABOUT SELLING THE US AMERICA IS ABOUT THE NEW THE NEW THE NEW AMERICA IS THE COUNTRY THAT INVENTED ADVERTISING EVERYTHING IS FOR SALE EVERY BELIEF IS UP FOR GRABS EVERY CHOICE IS REVOCABLE WHEN GENE IS CONFRONTED BY FERDINAND'S PAST IN A WORLD WHERE ACTIONS HAVE CONSEQUENCES WHERE CHOICES ARE IRREVOCABLE HE DOESN'T KNOW HOW TO REACT YOU HAVE TO HELP ME HE TELLS FERDINAND A BIT PATHETICALLY I'VE LIVED TO BE NEARLY SIXTYFIVE YEARS OLD AND I DON'T KNOW ANYTHING THERE WAS NEVER ANYTHING MORE FOR ME TO WORK FOR TO WORRY ABOUT THAN COMFORT AND NOW MAYBE AS A RESULT I HAVE NO ANCHOR DO YOU SEE THE LIBERTY CAMPAIGN IS A FORCEFUL BEAUTIFULLY WRITTEN BOOK THAT IS STRAIGHTFORWARD BUT NEVER SIMPLE MR DEE COMPLICATES THINGS BY MAKING FERDINAND A SYMPATHETIC MAN WHO BELIEVES THAT ONLY GOD CAN JUDGE HIM WHILE THE REPORTER WHO ASKS GENE TO DELIVER HIS FRIEND TO MODERN JUSTICE IS AN UNTRUSTWORTHY BULLY GENE IS CAUGHT IN A DILEMMA IN WHICH DOING NOTHING HAS AS MANY CONSEQUENCES AS DOING SOMETHING IN HIS WORLD DECISIONS HAVE REAL REPERCUSSIONS AND THE RESULTS ARE ANYTHING BUT AN ILLUSION THIS IMPRESSIVE BOOK WILL LEAVE YOU PONDERING ITS QUESTIONS LONG AFTER YOU'VE TURNED THE LAST PAGE MS MUCHNICK IS A WRITER IN NEW YORK 9307160020 930716 BUSINESS BRIEF FEDERAL HOME LOAN MORTGAGE CORP SECONDPERIOD NET ROSE 9 AS MORTGAGE BUSINESS GREW FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID SECONDQUARTER PROFIT ROSE 9 AS ITS MORTGAGE BUSINESS CONTINUED TO GROW FREDDIE MAC A GOVERNMENTSPONSORED CONCERN IN MCLEAN VA SAID NET ROSE TO 180 MILLION OR 94 CENTS A SHARE FROM 165 MILLION OR 88 CENTS A SHARE A YEAR AGO THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FREDDIE MAC CLOSED AT 5425 UP 50 CENTS THE COMPANY'S PROFITS COME PRIMARILY FROM FEES EARNED FROM BUYING MORTGAGES AND PACKAGING THEM AS SECURITIES AND INTEREST COLLECTED ON THE LOANS IT KEEPS ITSELF AS INVESTMENT MANAGEMENT AND FEE INCOME ON MORTGAGE SECURITIES ROSE 17 TO 264 MILLION FROM 226 MILLION A YEAR AGO FREDDIE MAC'S RETURN ON ITS RETAINED MORTGAGE PORTFOLIO INCREASED 51 TO 298 MILLION FROM 197 MILLION 9307160019 930716 BUSINESS BRIEF GOLDEN WEST FINANCIAL CORP SHARES FALL AS NET INCOME FOR SECOND PERIOD SLIPS 5 GOLDEN WEST FINANCIAL CORP SAID NET INCOME FOR THE SECOND QUARTER SLIPPED NEARLY 5 TO 706 MILLION OR 110 A SHARE FROM STRONG YEAREARLIER LEVELS THE OAKLAND CALIF SAVINGS AND LOAN HAS BEEN ONE OF THE MOST SUCCESSFUL THRIFTS IN RECENT YEARS PROSPERING WHILE THE S&L DEBACLE OF THE 1980S WIPED OUT MANY OF ITS COMPETITORS HOWEVER MARION O SANDLER GOLDEN WEST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID SECONDPERIOD PROFIT WAS PINCHED BECAUSE THE COMPANY'S NET INTEREST MARGIN THE DIFFERENCE BETWEEN WHAT IT PAYS FOR FUNDS AND WHAT IT RECEIVES FROM ITS LOANS TIGHTENED IN THE QUARTER SHE SAID THE NARROWING SPREAD OCCURRED BECAUSE OF AN INCREASE IN SHORTTERM INVESTMENTS AND BECAUSE OF THE DELAYED EFFECT OF ADJUSTABLE RATE MORTGAGES FALLING INTO LINE WITH CURRENT INTEREST RATE LEVELS IN THE YEAREARLIER QUARTER GOLDEN WEST EARNED 739 MILLION OR 116 A SHARE FOR THE SIX MONTHS GOLDEN WEST'S NET SLIPPED 1 TO 142 MILLION OR 222 A SHARE FROM 1439 MILLION OR 226 A YEAR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GOLDEN WEST SHARES FELL 2 APIECE TO 39875 9307160018 930716 BUSINESS BRIEF MCI COMMUNICATIONS CORP WIRELESS PHONE SERVICES TEST SET WITH NORTHERN TELECOM MCI COMMUNICATIONS CORP WASHINGTON SAID IT WILL TEST A RANGE OF WIRELESS PERSONAL COMMUNICATIONS SERVICES WITH NORTHERN TELECOM LTD BEGINNING IN AUGUST AND CONTINUING ABOUT THREE MONTHS THE LONGDISTANCE COMPANY SAID IT WILL TEST A SYSTEM THAT ALLOWS USERS TO CREATE PERSONAL PHONE SERVICES SUCH AS VOICE MAIL CALL BLOCKING SHORT MESSAGE SERVICE AND CALL SCREENING MCI SAID IT WILL ALSO TEST TIME DIVISION MULTIPLE ACCESS OR TDMA RADIO FREQUENCY TECHNOLOGY PROVIDED BY NORTHERN TELECOM AND SUBSEQUENTLY COMPARE ITS PERFORMANCE TO THE CODE DIVISION MULTIPLE ACCESS OR CDMA TECHNOLOGY USED IN THE FIRST TRIAL TDMA AND CDMA ARE NEW RIVAL DIGITAL TRANSMISSION TECHNOLOGIES FOR WIRELESS TELECOMMUNICATIONS THE NEW TECHNOLOGIES PROVIDE CLEARER RECEPTION FEWER DROPPED CALLS AND IMPROVED PRIVACY OVER CURRENT CELLULAR TECHNIQUES THE TRIAL WILL BE IN THE RICHARDSON/PLANO TEXAS AREA AND PARTICIPANTS WILL BE EMPLOYEES OF BOTH MCI AND NORTHERN TELECOM NORTHERN TELECOM A SUPPLIER OF TELECOMMUNICATIONS EQUIPMENT BASED IN TORONTO SAID IT HAS SUPPLIED A NUMBER OF THESE NETWORKS OVERSEAS PARTICULARLY IN AUSTRALIA AND EUROPE 9307160017 930716 INTERNATIONAL BRIEF SANYO ELECTRIC CO PRETAX PROFIT DROPPED 21 IN THE LATEST SIX MONTHS SANYO ELECTRIC CO THE JAPANESE CONSUMER ELECTRONICS CONCERN REPORTED THAT GROUP PRETAX PROFIT FELL 21 TO 264 BILLION YEN 246 MILLION IN THE SIX MONTHS ENDED MAY 31 SANYO POSTED A NET LOSS OF 267 BILLION YEN COMPARED WITH NET INCOME OF 452 MILLION YEN A YEAR EARLIER SALES SLIPPED 08 TO 73217 BILLION YEN FROM 73793 BILLION YEN THE COMPANY ALSO REVISED ITS FULLYEAR EARNINGS PROJECTIONS IT NOW EXPECTS A NET LOSS OF ONE BILLION YEN COMPARED WITH AN EARLIER FORECAST OF A 35 BILLIONYEN PROFIT SANYO CITED STAGNANT DOMESTIC CAPITAL INVESTMENT AND CONSUMPTION COMBINED WITH THE RAPID APPRECIATION OF THE YEN AND SLOW ECONOMIC RECOVERY IN EUROPE FOR THE SETBACK IN SALES IT IS NOW FOCUSING ON IMPLEMENTING A RESTRUCTURING PLAN THAT WILL EMPHASIZE DECENTRALIZED MANAGEMENT AND OPERATING EFFICIENCY A SANYO SPOKESWOMAN SAID RESTRUCTURING MEASURES INCLUDE REDUCING THE COMPANY'S WORK FORCE BY 2700 PEOPLE BY 1995 THROUGH ATTRITION 9307160016 930716 LAW LEGAL BEAT WEDTECH'S WALLACH STILL FIGHTING CHARGES AFTER ALL THESE YEARS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK E ROBERT WALLACH ONCE A HIGHFLYING SAN FRANCISCO LAWYER WITH A 500000AYEAR PRACTICE AND FRIENDS IN HIGH PLACES IS FIGHTING FOR HIS FREEDOM AND WHAT'S LEFT OF HIS PROFESSIONAL REPUTATION MR WALLACH IS THE LAST OF THE DEFENDANTS IN THE WEDTECH CORP INFLUENCEPEDDLING SCANDAL OF THE 1980S AND HE IS DEFENDING HIMSELF IN A CRIMINAL TRIAL IN FEDERAL COURT HERE THE CASE WHICH ON MOST DAYS ATTRACTS NO SPECTATORS IS EXPECTED TO GO TO THE JURY BY THE MIDDLE OF NEXT WEEK MR WALLACH WAS A FRIEND AND ADVISER TO THENATTORNEY GENERAL EDWIN MEESE III WHEN HE WAS ACCUSED IN 1987 OF ILLEGALLY TRADING ON HIS GOVERNMENT CONNECTIONS TO HELP WEDTECH A BRONX NY CONTRACTOR WIN DEFENSE CONTRACTS AND TO EARN HIMSELF 1 MILLION MR WALLACH DECLARED THEN THAT HE WAS ENGAGING IN LAWFUL LOBBYING AND HAS ASSERTED HIS INNOCENCE EVER SINCE AT FIRST MR WALLACH RECEIVED STRONG SUPPORT FROM PEOPLE WHO FELT HE WAS BEING UNFAIRLY TARGETED FOR HIS CONNECTION TO MR MEESE AND FROM THOSE WHO FELT THAT HE WAS BEING UNFAIRLY PROSECUTED UNDER FEDERAL RACKETEERING LAW HE RECEIVED ROUGHLY 40000 FOR A LEGALDEFENSE FUND AND GOT CRUCIAL LEGAL HELP FROM FORMER JUDGE ROBERT BORK AND OTHERS GRADUALLY HOWEVER PUBLIC INTEREST IN HIS CASE HAS FADED CASES AGAINST EVERYONE ELSE INVOLVED HAVE BEEN RESOLVED AND WEDTECH HAS FOLDED BUT THE CASE AGAINST MR WALLACH HAS NOT GONE AWAY AND ITS TWISTS AND TURNS HAVE BECOME A ROADMAP FOR HIS LIFE THE CURRENT TRIAL IS THE SECOND THAT MR WALLACH HAS FACED THE FIRST TIME AROUND IN 1989 A JURY CONVICTED HIM OF CONSPIRACY AND FRAUD BECAUSE THEY BELIEVED HE HAD SENT PHONY BILLS TO WEDTECH TO CONCEAL WHAT HE WAS REALLY DOING FOR THE COMPANY MR WALLACH WAS SENTENCED TO SIX YEARS IN PRISON THAT CASE DREW A STANDINGROOMONLY CROWD AND MR BORK LATER SUCCEEDED IN GETTING THE VERDICT OVERTURNED ON THE GROUNDS THAT AN IMPORTANT GOVERNMENT WITNESS HAD LIED IN HIS TESTIMONY BUT THAT WASN'T THE END OF THE STORY A NEW TRIAL WAS ORDERED MEANWHILE MR WALLACH'S LIFE WAS UNRAVELING ONCE THE PRESIDENT OF THE SAN FRANCISCO BAR AND A WELLKNOWN LAWYER MR WALLACH WAS DISBARRED AFTER THE FIRST VERDICT THEN READMITTED AFTER THE VERDICT WAS OVERTURNED BUT HE HAS FOCUSED ALMOST EXCLUSIVELY ON HIS OWN CASE AND SAYS THAT RECENTLY HE HAD ONLY 800 IN HIS BANK ACCOUNT IN SAN FRANCISCO HE USED TO TOOL AROUND TOWN IN AN ALFA ROMEO AND WALK A FANCY DOG CALLED A SULUKI NOW HE DRIVES A HONDA ACCORD AND ATTRACTS LITTLE NOTICE YET MR WALLACH HAS BECOME MORE AND MORE OBSESSED WITH HIS FIGHT AS OTHERS BECOME LESS AND LESS INTERESTED HE SENDS COUNTLESS LETTERS AND FAXES TO SUPPORTERS AND JOURNALISTS TRYING TO DRUM UP INTEREST IN THE CASE RE THE SAGA GOES ON BEGINS A RECENT ONE SENT TO REPORTERS WE TALK ABOUT IT INTERMINABLY SAYS MR BORK MR WALLACH ASKED TO DEFEND HIMSELF IN THE CURRENT CASE SEVERAL TIMES WITHDRAWING THE REQUEST LATER ON BEFORE HE FINALLY TOOK THE PLUNGE I DON'T KNOW WHAT THE TRUTH IS FOR MY REASONS FOR REPRESENTING MYSELF BUT I CAN'T SIT THROUGH A SECOND TRIAL AGAIN SAYS MR WALLACH WHO WROTE AN ARTICLE AFTER THE FIRST TRIAL ABOUT HOW IT GALLED HIM TO WATCH HIS DEFENSE LAWYER ENGAGE IN FRIENDLY CHATS WITH PROSECUTORS I GOT MY FAMILY INTO THIS AND IT'S MY JOB TO GET THEM OUT MR WALLACH ADDS I BELIEVE THE MAN ALWAYS HAD A TREMENDOUS URGE AND NEED TO DEFEND HIMSELF SAYS MICHAEL ARMSTRONG A PROMINENT NEW YORK DEFENSE LAWYER WHO HAD AGREED TO REPRESENT MR WALLACH FOR FREE THE RELATIONSHIP BROKE DOWN AMID THE OCCASIONAL SCREAMING MATCH OVER WHO WOULD CONTROL THE CASE HE RECEIVED ADVICE NOT TO REPRESENT HIMSELF BUT HE NEVER RECONCILED TO THAT MR ARMSTRONG EXPLAINS SO FAR THE DECISION TO REPRESENT HIMSELF APPEARS TO BE WORKING AT LEAST PSYCHOLOGICALLY MR WALLACH IS EBULLENT AS HE LEADS WHAT HE CALLS HIS GUERILLA TEAM INTO LEGAL BATTLE HIS TWO SONSINLAW ONE IS AN ACCOUNTANT AND THE OTHER IS A COMPUTER WHIZ HAVE HELPED HIM PREPARE FOR THE TRIAL A CLOSE FRIEND JEFFREY SHOPOFF WHO IS A SAN FRANCISO ATTORNEY HAS SAT BY HIS SIDE THROUGHOUT THE TRIAL AND TWO YOUNG LAWYERS ROBERT GIUFFRA AND ROBERT CULP ARE HELPING BEHIND THE SCENES PROSECUTORS DECLINE TO DISCUSS THE CASE BUT AT TRIAL THEY HAVE PAINTED A PICTURE OF MR WALLACH SELLING HIS CONNECTIONS NOT HIS LEGAL SKILLS TO WEDTECH REPEATEDLY REFERRING TO MR WALLACH AS A PERSONALINJURY LAWYER ASSISTANT US ATTORNEY JEFFREY SKLAROFF HAS DISPARAGED MR WALLACH'S ABILITY TO HELP WEDTECH ASIDE FROM HIS CONNECTIONS TO MR MEESE WEDTECH WAS A SINISTER PICTURE OF FRAUD AND CORRUPTION MR SKLAROFF SAID AND MR WALLACH WAS WEDTECH'S BOUGHT AND PAID FOR WASHINGTON INSIDER IF MR WALLACH IS CONVICTED THERE'S NO QUESTION HE'LL APPEAL IF HE'S ACQUITTED HE SAYS WISTFULLY HE PLANS TO REBUILD HIS LAW PRACTICE AND PUT THE SAGA BEHIND HIM THE SENATE JUDICIARY COMMITTEE IN A CHANGE OF POLICY WILL HOLD ONE DAY OF CLOSED HEARINGS ON THE SUPREME COURT NOMINATION OF RUTH BADER GINSBURG IN ADDITION TO THE USUAL PUBLIC SESSIONS COMMITTEE CHAIRMAN JOSEPH BIDEN SAID YESTERDAY THAT HE WAS MAKING THE CHANGE FOR ALL FUTURE HIGH COURT CONFIRMATION HEARINGS NOT BECAUSE THERE WAS ANY PARTICULAR PROBLEM WITH THE GINSBURG NOMINATION THE NEW COMMITTEE POLICY IS A REACTION TO THE FUROR OVER SEXUALHARASSMENT ALLEGATIONS THAT WERE MADE AGAINST JUSTICE CLARENCE THOMAS DURING HIS CONFIRMATION HEARINGS IN 1991 IN A SPEECH ON THE SENATE FLOOR SEN BIDEN SAID THE COMMITTEE WILL USE THE CLOSED SESSION A WEEK FROM TODAY TO QUESTION JUDGE GINSBURG EXCLUSIVELY ABOUT ANY PERSONAL ALLEGATIONS THAT HAVE BEEN MADE AGAINST HER REPEATEDLY THE SENATOR STRESSED THAT THERE IS WIDESPREAD SUPPORT FOR PRESIDENT CLINTON'S CHOICE OF JUDGE GINSBURG WHO SITS ON THE FEDERAL APPEALS COURT IN WASHINGTON SEN BIDEN SAID THAT A PRIVATE SESSION WOULD PROTECT NOMINEES AGAINST PUBLIC DISCUSSION OF UNSUBSTANTIATED ACCUSATIONS THE DELAWARE DEMOCRAT SAID THAT ALL MEMBERS OF THE SENATE WOULD HAVE ACCESS TO A TRANSCRIPT OF THE CLOSED SESSION AND THAT THERE WOULD BE A CLOSED BRIEFING FOR THOSE WHO AREN'T ON THE JUDICIARY COMMITTEE HE WARNED THAT ANY SENATOR WHO DISCLOSED CONFIDENTIAL MATTERS WOULD BE SUBJECT TO EXPULSION PUBLIC HEARINGS SCHEDULED TO BEGIN TUESDAY WILL EXPLORE JUDGE GINSBURG'S VIEWS ON JUDICIAL METHOD AND PHILOSOPHY SEN BIDEN SAID CONCERNS ABOUT MOUNTING FEES HAVE PROMPTED THE JUDGE IN THE MUTUAL BENEFIT LIFE INSURANCE CO CASE TO APPOINT TWO SPECIAL MASTERS IN JULY 1991 POLICYHOLDERS SKITTISH ABOUT POOR REALESTATE INVESTMENTS BEGAN WITHDRAWING MONEY MORE QUICKLY THAN THE COMPANY COULD ACCOMMODATE SINCE THEN NEW JERSEY'S DEPARTMENT OF INSURANCE AGENCY HAS BEEN ORGANIZING A REHABILITATION PLAN FOR THE COMPANY NEW JERSEY SUPERIOR COURT JUDGE PAUL LEVY WHO IS OVERSEEING THE CASE IS CLOSE TO A FINAL DECISION ON THE INSURANCE CONCERN'S PLANS BUT LAWYERS INVOLVED IN THE CASE SAID GROWING COMPLAINTS FROM A GROUP OF POLICYHOLDERS CAUSED HIM TO INVESTIGATE THE FEES BEING CHARGED BY LAW FIRMS AND CONSULTANTS INVOLVED IN THE CASE THUS FAR FOUR LAW FIRMS HAVE BILLED FOR MORE THAN 25 MILLION AND A CONSULTANT FIRM HAS BILLED FOR ABOUT 8 MILLION WHILE THE STATE DEPARTMENT OF INSURANCE DIDN'T OPPOSE THE APPOINTMENT A SPOKESMAN SAID THE AGENCY HAD INVESTIGATED THE FEES AND FOUND THEM REASONABLE THE LAW FIRMS INVOLVED IN THE CASE ARE CADWALADER WICKERSHAM & TAFT NEW YORK COLE SCHOTZ BERNSTEIN MEISEL & FORMAN HACKENSACK NJ SCRIBNER HALL & THOMPSON WASHINGTON AND WILLKIE FARR & GALLAGHER MANHATTAN JERRY ENGLISH A FORMER COMMISSIONER WITH NEW JERSEY'S DEPARTMENT OF ENVIRONMENTAL PROTECTION AND DAN MCGILL A RETIRED PROFESSOR FROM THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL HAVE BEEN APPOINTED MASTERS MS ENGLISH WILL EXAMINE THE LAW FIRMS MR MCGILL WILL EXAMINE THE CONSULTANTS PAUL M BARRETT AND DAVE KANSAS CONTRIBUTED TO THIS ARTICLE 9307160015 930716 WHO'S NEWS GE CAPITAL NAMES ANDREWS TO HIGH POST IN GLOBAL EXPANSION FAIRFIELD CONN GENERAL ELECTRIC CAPITAL CORP NAMED NIGEL DT ANDREWS TO ITS SENIOR MANAGEMENT TEAM UNDERLINING THE FINANCIALSERVICE OPERATION'S COMMITMENT TO STEER A GLOBAL COURSE MR ANDREWS 46 YEARS OLD WHOSE APPOINTMENT IS EFFECTIVE AUG 1 WILL BECOME ONE OF THREE EXECUTIVE VICE PRESIDENTS AT GE CAPITAL MR ANDREWS SUCCEEDS STEPHEN BERGER WHO LEFT THE GENERAL ELECTRIC CO UNIT TO REJOIN ODYSSEY PARTNERS LP A NEW YORK INVESTMENT BANKING COMPANY WHERE HE HAD WORKED SEVERAL YEARS AGO NIGEL ANDREWS BRINGS A STRONG BACKGROUND IN GLOBAL BUSINESS OPERATION AND IS AN IMPORTANT ADDITION TO OUR EXECUTIVE TEAM AS WE WORK TO CAPITALIZE ON THE CHALLENGES AND OPPORTUNITIES IN THE EXPANDING GLOBAL MARKET SAID GARY C WENDT GE CAPITAL'S CHIEF EXECUTIVE THE APPOINTMENT OF MR ANDREWS A BRITISH CITIZEN COMES SHORTLY AFTER THE COMPANY APPOINTED TOP EXECUTIVES TO DIRECT OPERATIONS IN GE CAPITAL'S ASIAN MARKETS GE CAPITAL HAS EXPRESSED AN INTEREST IN BROADENING ITS BUSINESS WHICH REMAINS CONCENTRATED IN THE US MR ANDREWS CURRENTLY VICE PRESIDENT AND GENERAL MANAGER OF GE PLASTICS AMERICA JOINED GE IN 1987 AS VICE PRESIDENT FOR CORPORATE BUSINESS DEVELOPMENT AND PLANNING AS AN EXECUTIVE VICE PRESIDENT HE WILL JOIN DENIS J NAYDEN AND EDWARD D STEWART ON THE GE CAPITAL MANAGEMENT TEAM JEFFREY R IMMELT WILL SUCCEED MR ANDREWS AS VICE PRESIDENT AND GENERAL MANAGER OF GE PLASTICS AMERICA MR IMMELT CURRENTLY DIRECTS GE PLASTICS' COMMERCIAL OPERATIONS IN THE AMERICAS GE HAS INTERESTS IN DEFENSE ELECTRONICS TECHNOLOGY POWER GENERATION PLASTICS LIGHTING AND BROADCASTING 9307160014 930716 WHITE HOUSE SEES SMALLER DEFICIT IN '93 BUT NO LONGTERM DROP WITHOUT ACTION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE REPUBLICAN CLAIMS TO THE CONTRARY THE DEFICIT ISN'T EVAPORATING ALTHOUGH THE BUDGET DEFICIT FOR THE CURRENT FISCAL YEAR PROBABLY WILL COME IN BELOW THE CLINTON ADMINISTRATION FORECAST THE DEFICIT OUTLOOK FOR NEXT YEAR AND BEYOND WON'T IMPROVE UNLESS CONGRESS ACTS THE WHITE HOUSE SAID THE WHITE HOUSE SAID YESTERDAY IT EXPECTS THE DEFICIT FOR FISCAL 1993 WHICH ENDS SEPT 30 TO BE AROUND 285 BILLION SUBSTANTIALLY LESS THAN THE 322 BILLION PROJECTED IN APRIL WHEN PRESIDENT CLINTON STILL HAD HOPES OF PERSUADING CONGRESS TO WIDEN THE DEFICIT TO STIMULATE THE ECONOMY BUT UPDATED PROJECTIONS FOR WHAT THE BASELINE DEFICIT WOULD BE NEXT YEAR AND BEYOND ASSUMING CONGRESS DOESN'T TAKE ANY ACTION ON THE PENDING TAX BILL HAVEN'T CHANGED MUCH NEW ESTIMATES BY THE WHITE HOUSE BUDGET OFFICE SHOW THE WHITE HOUSE AT THE URGING OF PRESIDENTIAL ADVISER DAVID GERGEN RUSHED OUT PRELIMINARY DEFICIT ESTIMATES IN RESPONSE TO REPUBLICAN CRITICISM GOP SENATORS HAVE COMPLAINED THAT THE ADMINISTRATION WAS PLANNING TO IGNORE TODAY'S STATUTORY DEADLINE FOR SUBMITTING A MIDYEAR UPDATE OF BUDGET AND ECONOMIC PROJECTIONS THE BUDGET OFFICE SAYS THAT WITHOUT ANY CONGRESSIONAL ACTION THE 1994 BASELINE DEFICIT WILL BE 300 BILLION CLOSE TO ITS APRIL ESTIMATE OF 302 BILLION FOR LATER YEARS WITH EARLIER ESTIMATES IN PARENTHESES THE NEW ESTIMATE FOR 1995 IS 286 BILLION 301 BILLION FOR 1996 291 BILLION 298 BILLION FOR 1997 340 BILLION 347 BILLION AND FOR 1998 379 BILLION 387 BILLION IN A FEDERAL BUDGET THAT EXCEEDS 12 TRILLION DIFFERENCES OF A FEW BILLION AREN'T SIGNIFICANT SEN PETE DOMENICI OF NEW MEXICO SENIOR REPUBLICAN ON THE BUDGET COMMITTEE HAS SUGGESTED THAT THE FISCAL 1993 DEFICIT MIGHT TURN OUT TO BE AS MUCH AS 50 BILLION NARROWER THAN THE WHITE HOUSE PREDICTED HE SAID THAT WEAKENED MR CLINTON'S CASE FOR RAISING TAXES THE WHITE HOUSE IS PLANNING A TIME OUT A DELAY A RETREAT SO IT CAN HIDE THE FACT THAT THE DEFICIT HAS ALREADY FALLEN AS MUCH AS 50 BILLION THIS YEAR WITHOUT ANY NEW TAXES SENATE REPUBLICAN LEADER ROBERT DOLE ASSERTED YESTERDAY BUT THE TAX BILL ISN'T INTENDED TO ADDRESS THIS YEAR'S DEFICIT IT IS SUPPOSED TO REDUCE THE DEFICIT IN FISCAL 1994 WHICH BEGINS OCT 1 AND THEREAFTER WHO WOULD ARGUE THAT A 285BILLION DEFICIT IN 1993 AND CONTINUING 300BILLION DEFICITS THROUGH 1998 ARE AN ARGUMENT FOR LESS DEFICIT REDUCTION SAID WHITE HOUSE BUDGET DIRECTOR LEON PANETTA FRANKLY THOSE WHO MAKE THIS ARGUMENT ARE ESSENTIALLY GRABBING AT STRAWS IN ORDER TO AVOID HAVING THE WEALTHY CONTRIBUTE THEIR FAIR SHARE TO DEFICIT REDUCTION THE REASON WE ARE CUTTING THE BUDGET IS THAT THE CBO AND OTHERS EXPECT THE DEFICIT IF NOTHING MORE IS DONE TO REDUCE IT TO BE AROUND 360 BILLION BY 1998 CONGRESSIONAL BUDGET OFFICE DIRECTOR ROBERT REISCHAUER SAID WHETHER IT IS 340 BILLION OR 400 BILLION SHOULDN'T IN ANY WAY AFFECT OUR COMMITMENT TO DEFICIT REDUCTION NOW THE WHITE HOUSE BUDGET OFFICE SAYS IT DELAYED ITS MIDYEAR REPORT SO THAT IT CAN REFLECT CONGRESSIONAL ACTION ON THE TAX BILL THE SAME REASON THE CONGRESSIONAL BUDGET OFFICE HAS CITED FOR DELAYING ITS MIDYEAR REPORT WHICH IS DUE AUG 15 THERE ISN'T ANY PENALTY FOR MISSING THE DEADLINE WHICH HAS BEEN MISSED IN THE PAST PRESIDENT REAGAN DIDN'T ISSUE HIS MIDYEAR REVIEW IN 1985 UNTIL AUG IF WE'RE BREAKING THE LAW THEN BUSH BUDGET DIRECTOR RICHARD DARMAN SHOULD HAVE SPENT A LOT OF TIME IN JAIL MR PANETTA QUIPPED BY DELAYING THE REPORT THE WHITE HOUSE AVOIDED A TICKLISH DECISION WHETHER TO USE THE PRESIDENT'S ORIGINAL BUDGET OR THE PENDING CONGRESSIONAL BILL AS THE BASIS FOR ITS ESTIMATES IN THE RECENT PAST REPUBLICAN PRESIDENTS UPDATED THEIR OWN PROPOSALS BUT MR CLINTON HAS REPLACED HIS ORIGINAL PLAN WITH THE ONE THAT IS EMERGING FROM CONGRESS THE FISCAL 1993 DEFICIT IS EXPECTED TO COME IN BELOW ADMINISTRATION ESTIMATES FOR SEVERAL REASONS THE ORIGINAL 322 BILLION ESTIMATE INCLUDED ABOUT 12 BILLION OF TAX CUTS AND SPENDING INCREASES FOR MR CLINTON'S UNSUCCESSFUL ECONOMIC STIMULUS PACKAGE LOWERTHANANTICIPATED SPENDING TO RESCUE DEPOSITORS IN FAILED THRIFTS AND BANKS AS WELL AS ON INTEREST COSTS AND ON HEALTHCARE PROGRAMS ACCOUNT FOR MOST OF THE REST LAST YEAR'S DEFICIT WAS 2904 BILLION 9307160013 930716 BUSINESS BRIEF CADENCE DESIGN SYSTEMS INC QUARTERLY NET PLUNGES 94 ON 13 DROP IN REVENUE CADENCE DESIGN SYSTEMS INC SAID LINGERING PROBLEMS IN DIGESTING AN ACQUISITION CAUSED SECONDQUARTER NET INCOME TO DECREASE 94 TO 832000 OR TWO CENTS A SHARE FROM 129 MILLION OR 28 CENTS A SHARE A YEAR EARLIER THE SAN JOSE CALIF MAKER OF SOFTWARE USED TO DESIGN CHIPS SAID REVENUE DECREASED 13 TO 917 MILLION FROM 1059 MILLION THE EARNINGS WERE CLOSE TO THE MEAN AVERAGE ANALYST FORECAST OF BREAKEVEN RESULTS ACCORDING TO ZACKS INVESTMENT RESEARCH INC AND SHOW A RETURN TO PROFITABILITY AFTER A FIRSTQUARTER LOSS IN THE PERIOD ENDED MARCH 31 THE COMPANY POSTED A LOSS OF 163 MILLION OR 37 CENTS A SHARE ON REVENUE OF 793 MILLION CADENCE HAS HAD PROBLEMS GETTING CUSTOMERS TO SWITCH TO ITS SOFTWARE FROM THAT OF ITS FORMER RIVAL VALID LOGIC SYSTEMS INC WHICH THE COMPANY ACQUIRED IN 1991 9307160012 930716 WHO'S NEWS GOODY'S FAMILY CLOTHING INC GOODY'S FAMILY CLOTHING INC KNOXVILLE TENN JOSEPH ELLES 38 YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT FOR MERCHANDISING OF THIS APPAREL RETAIL CHAIN MR ELLES MOST RECENTLY SERVED AS VICE PRESIDENT AND GENERAL MERCHANDISING MANAGER FOR SALES AND MARKETING FOR LEE APPAREL CO A UNIT OF CLOTHING COMPANY VF CORP HE SUCCEEDS THOMAS KELLY 46 WHO RESIGNED LAST MONTH 9307160011 930716 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JULY 9 ACCOUNTED FOR 87 OR AN AVERAGE 219 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL FOUR MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 46 INVOLVED STOCKINDEX ARBITRAGE UP FROM 32 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 506 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 407 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 87 WAS DESIGNATED AS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS SALOMON BROTHERS AND DAIWA SECURITIES EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE LEHMAN BROTHERS BEAR STEARNS AND MORGAN STANLEY DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9307160010 930716 INTERNATIONAL JAPAN REPORTS TRADE SURPLUS ROSE IN JUNE BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN REPORTED YET ANOTHER RISE IN ITS GLOBAL TRADE SURPLUS AT A TIME WHEN TOKYO AND WASHINGTON ARE FEUDING OVER WHAT SHOULD BE DONE TO INCREASE JAPAN'S IMPORTS OF FOREIGN GOODS THE FINANCE MINISTRY SAID JAPAN'S MERCHANDISE TRADE SURPLUS FOR JUNE ROSE 11 TO 997 BILLION FROM 895 BILLION A YEAR EARLIER THE NATION'S SURPLUS WITH THE US GREW 67 IN JUNE TO 335 BILLION JUNE'S INCREASE MARKED THE 30TH CONSECUTIVE MONTH OF YEARONYEAR GAINS IN JAPAN'S GLOBAL SURPLUS THE FINANCE MINISTRY HAD REPORTED THAT THE SURPLUS FOR MAY FELL 01 BUT YESTERDAY SAID IT ACTUALLY INCREASED 1 TO 781 BILLION THE MINISTRY ATTRIBUTED THE JUNE GAIN MAINLY TO THE YEN'S APPRECIATION AGAINST THE DOLLAR WHICH IN THE SHORT TERM INFLATES THE DOLLAR VALUE OF JAPAN'S TRADE SURPLUS THE LATEST TRADEGAP REPORT COMES JUST DAYS AFTER THE US AND JAPAN AGREED TO SET UP A NEW FRAMEWORK FOR FUTURE NEGOTIATIONS TO REDUCE JAPAN'S SURPLUS AND OPEN SPECIFIC SECTORS OF ITS MARKET BUT SINCE THE AGREEMENT WAS REACHED SATURDAY JAPANESE OFFICIALS HAVE ATTEMPTED TO PLAY DOWN THE DEGREE TO WHICH THE PACT COMMITS TOKYO TO TAKING ACTION TO CUT THE SURPLUS PRIME MINISTER KIICHI MIYAZAWA YESTERDAY EXPRESSED IRRITATION ABOUT REPORTS THAT A US OFFICIAL CALLED ON JAPAN TO TRIM INCOME TAXES AS A WAY OF REDUCING THE SURPLUS JAPAN WILL DECIDE JAPAN'S OWN ECONOMIC POLICIES THE NIHON KEIZAI SHIMBUN NEWSPAPER QUOTED MR MIYAZAWA AS SAYING THIS ISN'T THE KIND OF MATTER THE US SHOULD SAY THIS AND THAT ABOUT PRIVATE ECONOMISTS SAID IT IS UNLIKELY THAT JAPAN'S TRADE SURPLUS WILL BEGIN FALLING THIS YEAR THAT IS BECAUSE ONE OF THE SUREST WAYS TO CUT THE SURPLUS IS TO BOOST CONSUMER DEMAND FOR IMPORTS BUT THERE IS STILL RETRENCHMENT IN CONSUMER SPENDING BEHAVIOR SAID DONALD KIMBALL ECONOMIST AT MITSUBISHI BANK LTD THE BANK ESTIMATES THAT JAPAN'S ECONOMY WILL GROW AT A SLUGGISH RATE OF 12 THIS YEAR IN LINE WITH OTHER PRIVATE FORECASTS THE FINANCE MINISTRY SAID JAPANESE EXPORTS ROSE 84 IN JUNE TO 3048 BILLION AND IMPORTS INCREASED 7 TO 2051 BILLION JAPAN'S SURPLUS WITH THE SLUMPING EUROPEAN COMMUNITY FELL 26 TO 194 BILLION FOR THE MONTH MAINLY BECAUSE OF A DROP IN EUROPEAN IMPORTS OF JAPANESE CARS JAPAN'S SURPLUS WITH ASIA ROSE 39 TO 562 BILLION LARGELY BECAUSE OF A RISE IN JAPANESE EXPORTS OF SEMICONDUCTORS AUTOMOBILES AND STEEL FOR THE FIRST SIX MONTHS OF THIS YEAR THE MINISTRY SAID JAPAN'S GLOBAL SURPLUS ROSE 18 FROM THE SAME PERIOD LAST YEAR TO 5730 BILLION JAPAN'S SURPLUS WITH THE US ROSE 17 IN THE HALF TO 2165 BILLION 9307160009 930716 WHO'S NEWS CRYSTAL BRANDS TAPS CAMPBELL AS CHAIRMAN SOUTHPORT CONN CRYSTAL BRANDS INC NAMED THE EXECUTIVE WHO HELPED BRING MUNSINGWEAR INC OUT OF BANKRUPTCYLAW PROCEEDINGS AS ITS CHAIRMAN AND CHIEF EXECUTIVE CHARLES J CAMPBELL 48 YEARS OLD IN LATE AUGUST WILL ASSUME LEADERSHIP OF THE APPAREL COMPANY THAT PRODUCES UNDER SUCH BRANDS AS GANT IZOD AND EVANPICONE HE WILL SUCCEED GORDON E ALLEN 66 WHO WILL BECOME CHAIRMAN OF THE COMPANY'S EXECUTIVE COMMITTEE AND WILL SERVE AS A CONSULTANT MR ALLEN WAS NAMED INTERIM CHIEF EXECUTIVE AFTER RICHARD F KRAL 53 RESIGNED LAST NOVEMBER CRYSTAL BRANDS HAS BEEN STRUGGLING TO TURN ITSELF AROUND IN THE FACE OF HEAVY LOSSES AND DEBT RESTRUCTURING PROBLEMS SALES FROM CONTINUING OPERATIONS FELL 96 LAST YEAR TO 589 MILLION WHILE EXPENSES WERE TRIMMED BY 48 THE COMPANY TOOK A SIGNIFICANT LOSS PROVISION IN 1992 AFTER SELLING ITS MEN'S TAILORED CLOTHING BUSINESS IN ADDITION IT SOLD ITS INTEREST IN LACOSTE ALLIGATOR SA AND A DEBT RESTRUCTURING SUBSTANTIALLY INCREASED ITS INTEREST EXPENSES LAST YEAR MR CAMPBELL SAID CRYSTAL BRANDS' PROBLEMS ARE SIMILAR TO THOSE OF MUNSINGWEAR ALTHOUGH ON A LARGER SCALE UNDER MR CAMPBELL MUNSINGWEAR WENT FROM CHAPTER 11 BANKRUPTCYLAW REORGANIZATION IN 1989 TO PROFITABILITY IN 1991 A CRYSTAL BRANDS SPOKESMAN SAID HE WAS RECRUITED BASED UPON HIS EXPERIENCE IN TURNING AROUND APPAREL COMPANIES THAT ARE IN DIFFICULTY MR CAMPBELL SAID HE PLANS TO FOCUS ON REDUCING CRYSTAL BRANDS' LONGTERM DEBT WHICH TOTALED 273 MILLION AT THE END OF ITS FISCAL FIRST QUARTER ENDED APRIL 3 AND REPOSITION ITS GREAT STABLE OF NATIONAL BRANDS THROUGH BETTER DISTRIBUTION THE APPAREL MAKER HAS POSTED LOSSES IN ITS PAST TWO FISCAL YEARS INCLUDING A LOSS OF 753 MILLION ON SALES OF 651 MILLION IN 1992 IN THE PAST YEAR IT SOLD TWO DIVISIONS AND CONSOLIDATED ITS SALES AND MARKETING FORCE TO TRY TO STEM ITS LOSSES IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CRYSTAL BRANDS' SHARES CLOSED AT 1875 UP 125 CENTS OR 7 9307160008 930716 LOOK FOR AN IPO FROM THIS PET STORE BUT FORGET THE DOGGIE IN THE WINDOW BY NEAL LIPSCHUTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK PETSMART INC SOON WILL HAVE SHARES FOR SALE BUT PUPPIES WILL HAVE TO BE PURCHASED ELSEWHERE THE COMPANY NOW PLANNING ITS INITIAL PUBLIC OFFERING OF STOCK IS A KEY PLAYER IN THE BURGEONING FIELD OF PETSUPPLY SUPERSTORES AND PART OF A TREND TOWARD PETLESS PET STORES THE 25000 SQUARE FEET OF A PROTOTYPICAL PETSMART SUPERSTORE MAY CONTAIN 7000 PETRELATED ITEMS BUT NO DOGS OR CATS FOR SALE SOME STORES DO SELL BIRDS AND FISH IN THE OFFERING SCHEDULED FOR NEXT WEEK PETSMART EXPECTS TO SELL ABOUT 72 MILLION SHARES AT AN ANTICIPATED PRICE OF 1550 TO 1750 EACH THE SHARES OF WHICH 145 MILLION WILL BE SOLD BY HOLDERS AND THE REST BY THE COMPANY WILL BE OFFERED THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP PETSMART A CHAIN THAT STARTED IN 1987 WITH TWO PHOENIX STORES NOW BOASTS 72 SUPERSTORES AGGRESSIVE EXPANSION PLANS CALL FOR 106 SUPERSTORES IN 20 STATES BY THE END OF JANUARY AND THE OPENING OF AT LEAST 40 MORE SUPERSTORES IN EACH OF THE FOLLOWING TWO FISCAL YEARS SUCH RAPID GROWTH HASN'T BEEN LIMITED TO PETSMART OVER THE PAST FIVE YEARS SOME 500 SUPERSTORES OFFERING PET FOOD AND SUPPLIES HAVE OPENED ACROSS THE US AND MORE ARE ON THE WAY SAYS BARBARA BELL A SPOKESWOMAN FOR THE PET INDUSTRY JOINT ADVISORY COUNCIL A TRADE GROUP ONE PETSMART RIVAL CLOSELY HELD PETCO ANIMAL SUPPLIES INC OF SAN DIEGO HAS NEARLY 200 STORES AND SOME AMBITIOUS GROWTH PLANS OF ITS OWN BRIAN DEVINE PETCO'S PRESIDENT AND CHIEF EXECUTIVE SAYS THE COMPANY INTENDS TO OPEN NEW STORES WHILE REMODELING AND ENLARGING SOME OLDER ONES STILL JOHN MAXWELL AN ANALYST WHO FOLLOWS THE PETSUPPLY INDUSTRY FOR WHEAT FIRST SECURITIES INC RICHMOND VA IS UPBEAT ABOUT SUPERSTORES HE CITES THE PRICES AND VARIETY THE STORES CAN OFFER MR MAXWELL ALSO SAYS HE EXPECTS THE STORES' EXCLUSIVE OFFERINGS OF PREMIUM DOG AND CAT FOOD TO CONTINUE TO TAKE MARKET SHARE FROM SUPERMARKETS IN ITS PRELIMINARY PROSPECTUS PETSMART DESCRIBES ITSELF AS THE LARGEST US RETAILER OF PREMIUM BRANDS WHICH IT SAYS OFFER GREATER NUTRITIONAL VALUE THAN OTHER PET FOODS PREMIUM FOODS REPRESENTED MORE THAN 15 OF US PET FOOD SALES LAST YEAR AND CONTINUE TO GROW THE COMPANY SAYS IN THE FISCAL YEAR ENDED JAN 31 SUCH FOOD ALONG WITH LITTER AND TREATS COMPRISED ABOUT 55 OF PETSMART'S 1879 MILLION IN SALES SALES IN THE COMPANY'S FIRST FULL YEAR OF OPERATIONS WHICH ENDED JANUARY 1989 TOTALED JUST UNDER 16 MILLION OPERATING PROFIT FOR THE LATEST FISCAL YEAR NEARED 54 MILLION SALES IN THE FIRST QUARTER ENDED MAY 2 SOARED ABOUT 81 TO 685 MILLION FROM 379 MILLION A YEAR EARLIER OPERATING INCOME FOR THE PERIOD GREW 73 TO 21 MILLION FROM 12 MILLION MS BELL OF THE PET INDUSTRY TRADE GROUP ESTIMATES ANNUAL US SALES OF PET FOOD AND OTHER SUPPLIES AT 10 BILLION TO 13 BILLION EVENTUALLY PREDICTS PETCO'S MR DEVINE THE SWIFT GROWTH OF MANY CHAINS WLL LEAD TO A GIANT FALLOUT IN THE INDUSTRY WINNOWING THE NUMBER OF LARGE COMPETITORS IN THE MEANTIME HE EXPECTS A LARGE AMOUNT OF VENTURE CAPITAL TO FLOW INTO SUPERSTORES AND ADDITIONAL STARTUPS PETSMART ITSELF SEES SLOWER GROWTH ITS COMPARABLE STORE SALES OR THOSE FOR STORES OPEN A MINIMUM OF ONE YEAR GREW AT LEAST 19 IN EACH OF THE PAST THREE FISCAL YEARS BUT THE COMPANY SAYS IT ANTICIPATES THAT ITS RATE OF COMPARABLE STORE SALES GROWTH IF ANY WILL BE LOWER IN FUTURE PERIODS 9307160007 930716 BUSINESS BRIEF FIRST UNITED BANK GROUP INC MERGER TALKS ARE DISCLOSED STOCK PRICE INCREASES 12 FIRST UNITED BANK GROUP INC SAID IT IS DISCUSSING A POSSIBLE MERGER WITH A LARGER FINANCIAL INSTITUTION THE NEWS PUSHED THE ALBUQUERQUE NM BANK HOLDING COMPANY'S STOCK UP 12 OR 3 TO 28 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COMPANY OFFICIALS WOULDN'T IDENTIFY THE FINANCIAL INSTITUTION OR DISCLOSE ADDITIONAL DETAILS THE COMPANY WAS FORMED IN MARCH THROUGH THE MERGER OF UNITED NEW MEXICO FINANCIAL CORP AND FORD BANK GROUP INC FIRST UNITED'S COMBINED ASSETS WERE 342 BILLION IN THE FIRST QUARTER 9307160006 930716 TECHNOLOGY PICTURETEL TO INTRODUCE 6000 SYSTEM TO MAKE PCS WORK AS VIDEO TELEPHONES BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL DANVERS MASS PICTURETEL CORP PLANS TO UNVEIL TODAY EQUIPMENT THAT TURNS A DESKTOP PERSONAL COMPUTER INTO A PICTURE PHONE SYSTEM FOR 6000 INDUSTRY CONSULTANTS WHO HAVE SEEN THE NEW PRODUCT SAY THE QUALITY OF ITS SOUND AND PICTURES WILL ATTRACT BUSINESS USERS WHO HAVE DISMISSED THE JERKY FUZZY IMAGE OF THE SLOWSELLING AMERICAN TELEPHONE & TELEGRAPH CORP VIDEOPHONE AT&T ALSO HAS ANNOUNCED A PCTOPICTUREPHONE PRODUCT THAT WILL SELL FOR ABOUT 1000 MORE THAN PICTURETEL'S MODEL PICTURETEL'S PRICE IS FAR HIGHER THAN THE 750 AT&T VIDEOPHONES AND ALSO REQUIRES HIGHCAPACITY TELEPHONE LINES BUT SOME WHO HAVE SEEN IT ARE IMPRESSED THIS IS INDUSTRIAL STRENGTH VIDEO CONFERENCING SAID WILLIAM ABLONDI A CONSULTANT WITH BIS STRATEGIC DECISIONS INC NORWELL MASS THE NEW PICTURETEL MODEL WHICH WILL BE AVAILABLE IN THE FOURTH QUARTER WILL BE COMPATIBLE WITH THE COMPANY'S LARGER SYSTEMS THAT COST 20000 AND UP AND WILL WORK WITH A CONFERENCEROOM SYSTEM WITH A BASE PRICE OF 14000 THAT PICTURETEL WILL ALSO UNVEIL TODAY TURNING PCS INTO PICTURE PHONES IS A STRATEGY THAT APPEALS TO MANY VENDORS AT&T UNVEILED ITS SYSTEM IN MARCH FOR SALE LATER THIS YEAR VTEL CORP AUSTIN TEXAS PLANS TO SELL A 14000 PCBASED DESKTOP SYSTEM COMPRESSION LABS INC SAN JOSE CALIF HAS BEEN SELLING A 3800 SYSTEM CALLED CAMEO FOR APPLE MACINTOSH COMPUTERS SINCE 1992 BUT IT CAN COMMUNICATE ONLY WITH OTHER CAMEO SYSTEMS THE PICTURETEL AND AT&T SYSTEMS COULD TALK TO ANY OTHER SYSTEM USING INSUSTRY STANDARDS SEVERAL COMPUTER MAKERS HAVE VIDEOCONFERENCE SYSTEMS THAT WORK ON LOCAL AREA NETWORKS ALTHOUGH THEY DON'T GO OVER OUTSIDE PHONE LINES NORMAN GAUT PRESIDENT OF PICTURETEL THE LEADING MAKER OF VIDEO CONFERENCING SYSTEMS SAID THIS IS MOVING TO THE PERSONAL SIDE OF VIDEO CONFERENCING HE PREDICTED THAT MANY CURRENT PICTURETEL CUSTOMERS WILL BUY IT FOR EXECUTIVES WHO CAN THEN COMMUNICATE FROM THEIR DESKS TO SUBORDINATES IN REMOTE CONFERENCE ROOMS WE'RE ALSO FINDING THERE'S LOTS OF INTEREST IN WORK AT HOME ALTHOUGH IT IS DIFFICULT TO GET THE HIGHCAPACITY PHONE LINES IN MANY LOCATIONS PICTURETEL SAID THE PRODUCT THE PICTURETEL LIVE PCS 100 WON'T MAKE ANY SIGNIFICANT CONTRIBUTION TO RESULTS THIS YEAR THERE ARE AN AWFUL LOT OF APPLICATIONS WHERE THESE ARE VERY USABLE SAID ALBERT LILL VICE PRESIDENT OF MARKET RESEARCH FOR GARTNER GROUP IN STAMFORD CONN HE PREDICTED COMPANIES WILL BUY THEM FOR PROJECTS WHERE MANAGERS IN ONE PLACE WANT TO OVERSEE ENGINEERS OR MARKETING EXPERTS IN ANOTHER TYPICALLY USERS OF THE SYSTEM VIEW THE PERSON THEY ARE TALKING TO IN A WINDOW IN ONE CORNER OF THEIR OWN COMPUTER SCREEN PICTURETEL'S PRODUCT LETS PEOPLE SEE EACH OTHER'S PC SCREENS TO JOINTLY MARK UP DRAWINGS OR COMPARE CALENDARS MR GAUT SAID THAT IN THE FUTURE IT WILL BE INTEGRATED WITH LOTUS DEVELOPMENT CORP'S NOTES SOFTWARE THAT COORDINATES PROJECT WORKERS 9307160005 930716 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY MAKING THE RIGHT INSURANCE MOVES THROUGH THE AGES BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL FOR PEOPLE JUST STARTING OUT THE STEEPEST INSURANCE BILL MAY BE FOR AUTO COVERAGE DON'T SKIMP ON THE IMPORTANT LIABILITY PORTION OF THE POLICY WHICH PAYS IF YOU CAUSE AN ACCIDENT OR ARE SUED BEEFING IT UP MAY COST LESS THAN 100 A YEAR BUT DO CONSIDER THE POTENTIAL INSURANCE COSTS IN DECIDING WHAT TYPE OF CAR TO BUY OR WHETHER TO STICK WITH THE OLD ONE FOR A WHILE LONGER INSURANCE COSTS ARE TYPICALLY HIGHER ON MORE EXPENSIVE CARS WHICH ARE MORE COSTLY TO REPAIR OR REPLACE ALSO SPORTS CARS TEND TO BE MORE COSTLY TO INSURE THAN OTHER MODELS OF SIMILAR PRICE THEY TEND TO BE STOLEN MORE OFTEN AND THEY TEND TO BE IN WRECKS A LITTLE MORE OFTEN EXPLAINS DAVE HURST A SPOKESMAN FOR STATE FARM INSURANCE COS IN BLOOMINGTON ILL AN INDIANAPOLIS DRIVER OVER 25 YEARS OLD WOULD PAY 983 A YEAR TO INSURE A SPORTY 1993 CAMARO UNDER A REPRESENTATIVE STATE FARM POLICY COMPARED WITH 705 FOR THE SAME COVERAGE ON A 1993 FORD ESCORT THE TAB FOR AN OLDER 1986 ESCORT IS JUST 508 AND AN EVEN MORE MODEST 312 IF THE DRIVER NO LONGER CARRIES OPTIONAL COLLISION AND COMPREHENSIVE COVERAGE EVEN IF YOU ARE JUST RENTING AN APARTMENT BE SURE TO HAVE ADEQUATE COVERAGE ON YOUR HOUSEHOLD POSSESSIONS A RENTER'S POLICY WHICH ALSO PROVIDES LIABILITY COVERAGE MAY COST ONLY AROUND 100 A YEAR IN BUYING YOUR FIRST HOMEOWNERS POLICY IT'S WORTHWHILE TO PAY A LITTLE MORE FOR REPLACEMENT COST COVERAGE OF THE CONTENTS AND TALK TO YOUR AGENT ABOUT INCREASING THE POLICY SIZE IF YOU HAVE ENHANCED THE VALUE OF YOUR HOME WITH AN ADDITION OR OTHER IMPROVEMENTS USE THAT CAMCORDER YOU BOUGHT TO FILM THE NEW BABY TO DO A INVENTORY OF YOUR POSSESSIONS TO WALK AROUND WITH A VIDEO CAMERA AND OPEN THE DRAWERS AND MAYBE GIVE A LITTLE COMMENTARY IS REALLY VERY EASY SAYS DAVID J BOHL A FINANCIAL PLANNER AND INSURANCE SPECIALIST WITH ACCOUNTANTS ARTHUR ANDERSEN & CO IF YOU ARE A NEW PARENT THOUGH YOUR BIGGEST INSURANCE CONCERN IS SURELY LIFE INSURANCE PEOPLE WHO ARE YOUNG AND WHO HAVE FAMILY RESPONSIBILITIES TYPICALLY HAVE THE GREATEST NEED FOR LIFE INSURANCE SAYS HAROLD D SKIPPER JR AN INSURANCE PROFESSOR AT GEORGIA STATE UNIVERSITY IN ATLANTA TERM INSURANCE CAN BE A HANDY WAY TO GET LOTS OF COVERAGE AT A REASONABLE PRICE LOOK FOR POLICIES THAT ARE GUARANTEED RENEWABLE TYPICALLY TO AGE 70 AND THAT GIVE YOU THE OPTION OF CONVERTING TO CASHVALUE COVERAGE REGARDLESS OF YOUR HEALTH AT THE TIME YOU DECIDE TO SWITCH SOME PEOPLE PREFER CASHVALUE COVERAGE WHICH PROVIDES A TAXDEFERRED SAVINGS PLAN AS WELL AS THE DEATH BENEFIT BUT DON'T TRIM THE AMOUNT OF COVERAGE YOU BUY SIMPLY TO GET IT IN THE FORM OF CASHVALUE IF YOU NEED 300000 GET 300000 WORTH EVEN IF IT'S ALL TERM SAYS VIRGINIA APPLEGARTH A BOSTON FINANCIAL AND INSURANCE ADVISER ALSO CONSIDER BUYING DISABILITY INSURANCE PARTICULARLY IF YOU DON'T HAVE ANY SUCH COVERAGE AT WORK AND THINK ABOUT DISABILITY COVERAGE WHEN YOU ARE DECIDING WHAT TYPE OF LIFE INSURANCE TO BUY BUYING TERM LIFE INSURANCE AND A DISABILITY POLICY COULD BE A WISER MOVE THAN BUYING CASHVALUE LIFE INSURANCE AND NO DISABILITY SAYS MR BOHL OF ARTHUR ANDERSEN IF YOU HAVEN'T ALREADY DONE SO IT'S TIME TO CONSIDER AUGMENTING YOUR HOMEOWNERS AND AUTO COVERAGE WITH AN UMBRELLA LIABILITY POLICY OF 1 MILLION OR MORE PEOPLE GET SUED EVERY DAY NOTES MALCOLM A MAKIN A WESTERLY RI FINANCIAL PLANNER A 1 MILLION UMBRELLA POLICY MAY COST ONLY 100 OR SO A YEAR WITH IT YOU PROTECT YOURSELF AGAINST THE PERSON WHO INADVERTENTLY STEPS IN FRONT OF YOUR CAR AND DECIDES TO SUE YOU FOR A MILLION DOLLARS MR MAKIN EXPLAINS A COMMON MISTAKE PEOPLE MAKE ON THEIR HOMEOWNERS COVERAGE IS TO BE UNAWARE OF INTERNAL LIMITS CAPS ON HOW MUCH THE POLICY WILL PAY FOR LOSSES INVOLVING ITEMS SUCH AS JEWELRY FURS SILVERWARE AND ORIENTAL RUGS IT'S NOT UNUSUAL FOR A FAMILY TO HAVE 10000 IN JEWELRY BUT A POLICY THAT LIMITS JEWELRY PAYOUTS TO 2500 SAYS ELLIOT S LIPSON AN ATLANTA FINANCIAL PLANNER A SIMPLE SOLUTION POLICY ENDORSEMENTS OR SEPARATE FLOATER POLICIES THAT BOOST COVERAGE OF THOSE ITEMS IF YOU HAVE CHILDREN OF DRIVING AGE YOUR AUTO INSURANCE PREMIUMS HAVE NO DOUBT SOARED SOME INSURERS OFFER DISCOUNTS FOR STUDENTS WHO EARN GOOD GRADES TAKE A DRIVERS EDUCATION COURSE OR GO TO COLLEGE FAR FROM HOME IN ANY EVENT MAKE THEM EARN THE MONEY FOR THE PREMIUMS SUGGESTS VIRGINIA APPLEGARTH A BOSTON FINANCIAL AND INSURANCE ADVISER BE SURE TO HAVE ADEQUATE DISABILITY INSURANCE SINCE THESE ARE PEAK EARNING YEARS MS APPLEGARTH SUGGESTS BUYING A DISABILITY POLICY NOW IF YOU ARE PLANNING TO LEAVE A SECURE JOB TO START A NEW VENTURE ON YOUR OWN THE REASON IT MAY BE IMPOSSIBLE TO BUY DISABILITY COVERAGE IN YOUR BUSINESS'S FIRST FEW YEARS IF YOU OWN TERM LIFE INSURANCE AND EXPECT TO NEED COVERAGE FOR ANOTHER 15 YEARS OR SO YOU MAY WANT TO CONSIDER SWITCHING TO A CASHVALUE POLICY BUT DON'T AUTOMATICALLY CONVERT YOUR TERM POLICY TO A CASHVALUE PLAN FROM THE SAME INSURER IF YOU ARE IN GOOD HEALTH YOU MAY FIND A BETTER DEAL OR MORE ATTRACTIVE POLICY ELSEWHERE MEANWHILE PEOPLE WHO BOUGHT CASHVALUE POLICIES YEARS AGO MAY CONSIDER BORROWING FROM THEIR POLICIES TO PAY COLLEGE BILLS OR MEET OTHER EXPENSES SOME OLDER POLICIES FEATURE VERY LOW LOAN RATES BUT WATCH OUT ON SOME OTHER POLICIES THE RETURN CREDITED TO YOUR CASH VALUE IS REDUCED WHEN YOU BORROW SO THAT THE CHARGE FOR BORROWING IS REALLY HIGHER THAN IT FIRST APPEARS REMEMBER ALSO THAT THE INTEREST PAID ON INSURANCE POLICY LOANS ISN'T TAX DEDUCTIBLE AS IS THE INTEREST ON SAY A HOMEEQUITY LOAN IN GENERAL YOU SHOULD LOOK TO OTHER SOURCES OF MONEY BEFORE YOU BORROW AGAINST A CASHVALUE POLICY SAYS GLENN S DAILY A NEW YORK INSURANCE ADVISER AT THIS STAGE IN LIFE YOUR NEED FOR LIFE INSURANCE MAY HAVE FALLEN OR INCREASED THAT DEPENDS ON YOUR FAMILY CIRCUMSTANCES HOW MUCH MONEY YOU HAVE MANAGED TO SET ASIDE OVER THE YEARS AND YOUR CURRENT LIFESTYLE DON'T BE TOO QUICK TO DROP EXISTING CASHVALUE POLICIES ONCE IN PLACE THEY ARE USUALLY GOOD INVESTMENTS AND THEY MAY BE USEFUL TO HELP YOUR FAMILY PAY ANY ESTATE TAXES THAT WOULD BE DUE AT YOUR DEATH IF YOU HAVEN'T DONE SO IN A WHILE CHECK THAT YOUR HOMEOWNERS' INSURANCE POLICY IS ADEQUATE TO COVER CURRENT REBUILDING COSTS ALSO REVIEW THE LIABILITY COVERAGE YOU HAVE UNDER YOUR AUTO HOMEOWNERS AND POSSIBLY A SEPARATE UMBRELLA POLICY WITHOUT ADEQUATE LIABILITY COVERAGE THE WEALTH YOU HAVE ACCUMULATED OVER YOUR LIFETIME COULD BE DEPLETED BY A LAWSUIT MANY RETIREES WHO HAD OBTAINED THEIR MEDICAL INSURANCE THROUGH WORK ARE NOW PAYING FOR INDIVIDUAL MEDICARE SUPPLEMENT POLICIES TO AUGMENT MEDICARE BENEFITS SOME MAY ALSO WANT TO CONSIDER BUYING LONGTERM CARE POLICIES THAT WOULD HELP COVER THE STEEP COSTS OF AN EXTENDED NURSINGHOME STAY BUT LONGTERM CARE POLICIES CAN COST 1000 OR MORE A YEAR AND MANY ADVISERS AREN'T SURE THEY ARE WORTH IT WAIT TO SEE IF NURSINGHOME CARE WOULD BE COVERED UNDER PRESIDENT CLINTON'S HEALTHCARE REFORMS SUGGESTS DAVID J BOHL A FINANCIAL PLANNER AND INSURANCE SPECIALIST WITH ACCOUNTANTS ARTHUR ANDERSEN & CO SOME PEOPLE IN THEIR 60S AND LATER YEARS MAY WANT TO TAP THE SAVINGS THEY HAVE ACCUMULATED IN CASHVALUE LIFE INSURANCE POLICIES OPTIONS INCLUDE TAKING POLICY LOANS SURRENDERING PART OR ALL OF THE COVERAGE AND SWITCHING SOME DOLLARS INTO AN IMMEDIATE ANNUITY THAT WOULD PAY A FIXED SUM EACH MONTH FOR LIFE IF YOU DON'T NEED THE MONEY THOUGH IT GENERALLY MAKES SENSE TO HANG ON TO AN OLDER CASHVALUE POLICY YOU COULD FACE A BIG INCOMETAX BILL ON THE INVESTMENT GAINS WITHIN THE POLICY IF YOU DROP THE COVERAGE NOW IN CONTRAST IF YOU HOLD THE POLICY TO DEATH ALL THE INVESTMENT GAINS ESCAPE INCOME TAX CONSIDER CONVERTING TO PAIDUP STATUS WHICH WOULD TRIM THE DEATH BENEFIT SOME BUT ELIMINATE THE NEED TO PAY FURTHER PREMIUMS IN MOST CASES HOLDING ON TO THAT PAIDUP POLICY WILL BE BETTER FOR YOUR HEIRS THAN SURRENDERING IT AND INVESTING IN BONDS OR BANK CERTIFICATES SAYS GLENN S DAILY A NEW YORK INSURANCE ADVISER MANY WELLOFF RETIREES ARE BEING ENCOURAGED TO BUY ADDITIONAL LIFE INSURANCE POLICIES TO PAY ESTATE TAXES THE FEDERAL ESTATE TAX WITH A CURRENT TOP RATE OF 50 IS DUE WHENEVER SOMEONE DIES LEAVING MORE THAN 600000 TO ANYONE OTHER THAN A SURVIVING SPOUSE STATE LEVIES VARY THE HOT PRODUCT IS SECOND TO DIE COVERAGE THAT PAYS ONLY WHEN BOTH THE HUSBAND AND WIFE HAVE DIED REVIEW YOUR OPTIONS THOROUGHLY WITH AN ESTATEPLANNING ATTORNEY AND OTHER ADVISERS LIFE INSURANCE CAN PROVIDE MUCHNEEDED LIQUIDITY WHEN FAMILY WEALTH IS TIED UP IN A SMALL BUSINESS OR REAL ESTATE INSURANCE IS ALSO A REASONABLE INVESTMENT FOR YOUR HEIRS LARGELY BECAUSE OF THE INCOMETAX BENEFITS MR DAILY SAYS BUT WATCH OUT FOR MARKETING HYPE YOU DON'T NEED INSURANCE TO PAY ESTATE TAXES IF YOU HOLD LOTS OF MARKETABLE SECURITIES THAT COULD BE EASILY SOLD THERE ARE ALSO VARIOUS PLANNING TECHNIQUES THAT CAN ACTUALLY REDUCE THE POTENTIAL ESTATETAX BURDEN NOTE THAT INSURANCE DEATH BENEFITS ARE USUALLY INCLUDED IN CALCULATING YOUR TAXABLE ESTATE TO AVOID THAT CONSULT YOUR ATTORNEY AND ACCOUNTANT ABOUT MOVING EXISTING POLICIES INTO A LIFE INSURANCE TRUST ANY NEW POLICIES SHOULD GENERALLY ALSO BE PURCHASED THROUGH A TRUST SEE RELATED STORIES A SOUND FINANCIAL PLAN BEGINS WITH INSURANCE AND FIGURING OUT THE RIGHT AMOUNT OF COVERAGE FOR YOUR SURVIVORS WSJ JULY 16 1993 9307160003 930715 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9307160002 930716 CREDIT RATINGS LYONDELL PETROCHEMICAL CO HOUSTON MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING FOR POSSIBLE DOWNGRADE ITS BAA3 RATING ON THIS OIL COMPANY'S SENIOR NOTES AND ITS PRIME3 RATING ON ITS COMMERCIAL PAPER ABOUT 720 MILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID THE REVIEW REFLECTS CONCERN OVER LYONDELL'S WEAK OPERATING PERFORMANCE AND ITS GENEROUS DIVIDEND POLICY WHICH IT SAID HAVE RESULTED IN INSUFFICIENT RETAINED CASH FLOW AND INCREASED DEBT LEVELS 9307160001 930716 JP MORGAN FIVE OTHER BANKS REPORT BIG GAINS IN SECONDQUARTER EARNINGS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JP MORGAN & CO POSTED A GREATERTHANEXPECTED 33 JUMP IN SECONDQUARTER PROFIT FUELED BY RECORD TRADING REVENUE AND GAINS ACROSS MOST BUSINESS LINES WHILE FIVE BIG REGIONAL BANKS REPORTED DOUBLEDIGIT EARNINGS GAINS CONTINUING THE INDUSTRY'S STRONG SECONDQUARTER RESULTS FIRST UNION CORP SAID EARNINGS ROSE ALMOST 74 WHILE NORWEST CORP SAID NET INCOME JUMPED ALMOST 27 KEYCORP SAID NET JUMPED 32 WHILE NATIONAL CITY CORP REPORTED A 20 INCREASE IN NET CONTINENTAL BANK CORP SAID EARNINGS ROSE NEARLY 20 MOST BANKS' RESULTS WERE IN LINE OR BETTER THAN WALL STREET FORECASTS BENEFITING FROM DECLINING COSTS OF PROBLEM DEBTS AND FAT ALBEIT NARROWING MARGINS BETWEEN BORROWING AND LENDING THE QUARTER ALSO IS SHAPING UP TO BE ONE OF THE BEST EVER FOR SECURITIES AND CURRENCY TRADING MEANWHILE NATIONAL CITY AND KEYCORP SAID LOAN GROWTH WAS PICKING UP THE STRONG TRADING GAINS FOR JP MORGAN CONTINENTAL BANK AND OTHERS SUGGESTS THAT OTHER BANKS ACTIVE IN TRADING ACTIVITIES SUCH AS BANKERS TRUST NEW YORK CORP CHEMICAL BANKING CORP AND CITICORP COULD ALSO POST SIGNIFICANT GAINS IT LOOKS LIKE A REALLY GOOD TRADING QUARTER FOR ALL THESE GUYS SAID DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE & WOODS INC IT MAKES ME HOLD MY BREATH IN ANTICIPATION OF THE OTHER MONEYCENTER BANKS' RESULTS HE SAID THE REACTION IN THE STOCK MARKET WAS GENERALLY POSITIVE JP MORGAN SHARES ROSE 150 TO 71625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FIRST UNION EDGED UP 625 CENTS TO 46 NORWEST SHARES ROSE 25 CENTS TO 2675 KEYCORP ROSE 625 CENTS TO 40375 NATIONAL CITY WAS UNCHANGED AT 53 AND CONTINENTAL BANK FELL 25 CENTS TO 23125 ALL OF THE STOCKS TRADE ON THE BIG BOARD MOST OTHER BANK SHARES ROSE FOR THE DAY AFTER FALLING THE LAST FEW TRADING SESSIONS AT A TIME WHEN THE INDUSTRY IS SEARCHING FOR REVENUE GROWTH THE BIG NEW YORKBASED BLUECHIP BANK SHOWED HOW ITS DIVERSIFICATION INTO GLOBAL FINANCIAL SERVICES HAS PAID OFF ITS 212 A SHARE PROFIT WALLOPED ANALYSTS' CONSENSUS ESTIMATE OF ABOUT 145 A SHARE THE BANK HAD ITS SECONDBEST QUARTER EVER WITH NONINTEREST REVENUE RISING 33 TRADING REVENUE WAS 520 MILLION UP FROM THE FIRST QUARTER'S 469 MILLION AND THE YEAREARLIER PERIOD'S 285 MILLION DUE TO A DIVERSE ARRAY OF ACTIVITIES AND LOCATIONS WITH NOTABLE STRENGTH IN GLOBAL DEBT TRADING AND SWAPS IN ADDITION TO THE EXCEPTIONAL TRADING REVENUE OTHER BUSINESSES SUCH AS SECURITIES LENDING INVESTMENT MANAGEMENT AND OPERATING SERVICE FEES ALL ROSE AT A DOUBLEDIGIT RATE GAINS FROM THE SALE OF INVESTMENT SECURITIES HOWEVER FELL TO 98 MILLION FROM 152 MILLION IN THE YEAREARLIER QUARTER THE BANK HAD NO NEED TO SET ASIDE ANY RESERVES FOR LOAN LOSSES REFLECTING ITS SQUEAKYCLEAN BALANCE SHEET THE BANK HAS GROWN 28 IN THE PAST YEAR AS ITS SECURITIES AND CURRENCY TRADING DIVISIONS ADD ASSETS WITH WHICH TO MAKE MARKETS AND ENGAGE IN PROPRIETARY TRADING THE MARKET FOR RISK MANAGEMENT PRODUCTS IS STILL A GROWTH BUSINESS SAID MR BERRY THE CHARLOTTE NC BANK'S STRONGERTHANEXPECTED SECONDQUARTER EARNINGS REFLECT CONTINUED COST CONTROLS AND MERCHANTBANKING GAINS WHICH CONTRIBUTED 44 MILLION OR 16 CENTS A SHARE AFTER TAXES TO THE RESULTS IN THE SECOND QUARTER FIRST UNION SAW NET INTEREST INCOME GROW BY ALMOST 12 TO 7082 MILLION FROM 634 MILLION A YEAR EARLIER NET LOANS AT THE END OF THE QUARTER STOOD AT 449 BILLION ALSO AN INCREASE OF NEARLY 12 FROM A YEAR EARLIER DEPOSITS CLIMBED 17 TO 554 BILLION THE INCREASES IN LOANS AND DEPOSITS STEM PARTLY FROM FIRST UNION'S ACQUISITIONS OF FIRST AMERICAN METRO CORP AND FIRST FINANCIAL MANAGEMENT CORP'S GEORGIA FEDERAL BANK BUT SINCE BOTH ACQUISITIONS WERE COMPLETED ONLY LAST MONTH THEY DIDN'T HAVE A MATERIAL IMPACT ON EARNINGS COMPANY OFFICIALS SAID FIRST UNION'S NET INTEREST MARGIN A KEY MEASURE OF PROFITABILITY THAT EXPRESSES THE SPREAD BETWEEN A BANK'S BORROWING COSTS AND THE RATE EARNED ON LOANS AND INVESTMENTS NARROWED SLIGHTLY TO 492 PERCENTAGE POINTS FROM 5 PERCENTAGE POINTS IN THE FIRST QUARTER DUE TO RISK MANAGEMENT TECHNIQUES THAT EFFECTIVELY LOCKED IN ITS MARGIN FOR THE REST OF THE YEAR SANDRA J FLANNIGAN AN ANALYST AT MERRILL LYNCH & CO SAID THE MARKET MAY HAVE BEEN CONCERNED ABOUT FIRST UNION SUSTAINING ITS NET INTEREST MARGIN I HOPE THESE RESULTS WILL ALLAY SOME OF THESE FEARS SHE SAID EACH OF THIS MINNEAPOLIS BANK HOLDING COMPANY'S BUSINESS UNITS REPORTED STRONG EARNINGS GROWTH FOR THE QUARTER EARNINGS AT THE COMPANY'S MORTGAGE BANKING UNIT MORE THAN DOUBLED TO 23 MILLION FROM 108 MILLION NORWEST SAID A 618 MILLION PRETAX GAIN ON THE SALE OF 29 BILLION OF SERVICING WHICH WAS PARTIALLY OFFSET BY OTHER CHARGES CONTRIBUTED TO THE UNIT'S EARNINGS INCREASE MORTGAGE ORIGINATIONS CONTINUED TO BE STRONG AT MORE THAN 85 BILLION IN THE QUARTER NORWEST'S FINANCIAL SERVICES ARM HAD A 23 INCREASE IN EARNINGS WHILE EARNINGS FOR THE BANKING GROUP ROSE 16 WITH SOUTH DAKOTA NEBRASKA IOWA NORTH DAKOTA MONTANA AND WYOMING REALIZING RETURNS ON ASSETS IN EXCESS OF 14 AND COLORADO NEARLY 14 NET INTEREST MARGIN WAS 565 PERCENTAGE POINTS UP FROM 524 PERCENTAGE POINTS IN THE YEAREARLIER QUARTER BUT DOWN FROM THE FIRST QUARTER NORWEST'S PROVISION FOR CREDIT LOSSES FELL TO 394 MILLION FROM 476 MILLION A YEAR AGO NONPERFORMING ASSETS DECLINED 22 MILLION IN THE SECOND QUARTER TO 2981 MILLION NET INCOME SURGED 32 ALTHOUGH THE ALBANY NY REGIONAL BANKING COMPANY'S NET INTEREST MARGIN DECLINED TO 534 PERCENTAGE POINTS IN THE QUARTER FROM 538 PERCENTAGE POINTS IN THE FIRST QUARTER KEYCORP SAID AN INCREASE IN ASSETS INCLUDING FIRST QUARTER ACQUISITIONS MORE THAN OFFSET THE DECLINE IN YIELD THE DECLINE IN PART REFLECTED THE RECENT ACQUISITIONS OF NATIONAL SAVINGS BANK OF ALBANY AND FIRST AMERICAN BANK OF NEW YORK IT TAKES SOME TIME TO BRING NEWLY ACQUIRED BANKS UP TO OUR TRADITIONAL PERFORMANCE LEVEL THE COMPANY SAID IN ADDITION RECORD LEVELS OF MORTGAGE LOAN REFINANCING HAD REDUCED YIELDS IN MORTGAGERELATED PORTFOLIOS LOAN GROWTH IN THE QUARTER THOUGH A MODEST 55 WAS HEADED IN THE RIGHT DIRECTION THE BANK SAID WITH GROWTH IN THE WESTERN US OUTPACING THE EASTERN TERRITORY KEYCORP EXPECTS LOAN PORTFOLIO GROWTH FOR THE YEAR OF ABOUT 5 OR 13 TO 14 IF THE PORTFOLIOS OF THE RECENTLY ACQUIRED BANKS ARE INCLUDED KEYCORP'S PROVISION FOR LOAN LOSSES FELL TO 415 MILLION IN THE QUARTER FROM 493 MILLION A YEAR AGO HIGHER FEE INCOME AND A CONTINUING DECLINE IN LOANLOSS PROVISIONS HELPED PRODUCE STRONG SECONDQUARTER EARNINGS AT THIS CLEVELANDBASED FINANCIAL SERVICES COMPANY THE LOANLOSS PROVISION PLUMMETED 38 TO 239 MILLION FROM 386 MILLION A YEAR EARLIER NONPERFORMING ASSETS DECLINED FOR THE NINTH CONSECUTIVE QUARTER TO 268 MILLION FROM 367 MILLION A YEAR EARLIER AT THE END OF THE QUARTER NONPERFORMING ASSETS REPRESENTED JUST 14 OF LOANS AND FORECLOSED REAL ESTATE COMPARED WITH 24 A YEAR EARLIER THE FINANCIAL SERVICES COMPANY ALSO BENEFITED FROM LOVELY LOAN GROWTH SAID GOLDMAN SACHS ANALYST ROBERT ALBERTSON LOANS TOTALED 195 BILLION UP 5 FROM 185 BILLION A YEAR EARLIER TOTAL REVENUE ROSE 15 TO 251 MILLION ALTHOUGH 29 MILLION CAME FROM EQUITY INVESTMENTS THE CHICAGOBASED COMPANY WAS HELPED BY A FOURFOLD JUMP IN TRADING REVENUE OPERATING EXPENSES ROSE MORE THAN 10 AS EMPLOYEE EXPENSES ROSE 6 THE PROVISION FOR LOAN LOSSES WAS 35 MILLION DOWN FROM THE FIRST QUARTER BUT UP FROM YEAREARLIER LEVELS THE BANK IS STILL BEING HURT BY ITS EXPOSURE TO THE CALIFORNIA REAL ESTATE MARKET STILL NONPERFORMING ASSETS FELL 12 FROM THE FIRST QUARTER TO 768 MILLION 9307150164 930715 INTERNATIONAL JAPANESE DISPUTE US COMMENTS ON TRADE PACT'S EFFECT ON SURPLUS BY JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN AGAIN APPLIED THE BRAKES ON EXPECTATIONS FOR THE NATION'S NEW FRAMEWORK TRADE AGREEMENT WITH THE US SAYING US OFFICIALS ARE OFF BASE IN THEIR STATEMENTS ABOUT DECREASES IN JAPAN'S TRADE SURPLUS AMERICAN NEGOTIATORS HAVE CALLED THE AGREEMENT A MAJOR STEP IN EFFORTS TO REDUCE JAPAN'S HUGE SURPLUS BUT SINCE THE PACT WAS REACHED SATURDAY A GROWING NUMBER OF JAPANESE OFFICIALS HAVE INSISTED IT IS JUST A FRAMEWORK FOR FUTURE TALKS AND LITTLE MORE IT'S A DIFFERENCE IN TONE THAT IS LIKELY TO FRUSTRATE US NEGOTIATORS WHO CLAIM THEY'VE GOTTEN SOMETHING FROM JAPAN THAT THEY HAVEN'T YESTERDAY JAPAN'S CHIEF TRADE NEGOTIATOR SOZABURO OKAMATSU TOOK ISSUE WITH COMMENTS BY US OFFICIALS THAT THEY EXPECT JAPAN'S SURPLUS EVENTUALLY TO DROP TO 2 OR LESS OF GROSS DOMESTIC PRODUCT AS A RESULT OF TALKS WITH THE JAPANESE THE SURPLUS IS NOW MORE THAN 3 OF GDP THE US TEAM MAY HAVE A NUMBER 2 BUT THERE IS NO AGREEMENT ON A NUMBER MR OKAMATSU SAID AT A LUNCH WITH FOREIGN REPORTERS HOLDING UP A COPY OF THE TRADE AGREEMENT FOR EMPHASIS HE ADDED A NUMBER ISN'T WRITTEN IN THE PAPER WHAT IS IN THE AGREEMENT ARE GENERAL STATEMENTS THAT SAY JAPAN AGREES TO PURSUE A HIGHLY SIGNIFICANT DECREASE IN ITS TRADE SURPLUS OVER THE MEDIUM TERM IN DIPLOMATIC PARLANCE MEDIUM TERM USUALLY MEANS FOUR OR FIVE YEARS US OFFICIALS LIKE THEIR JAPANESE COUNTERPARTS CONSIDER THE AGREEMENT TO BE ONLY A FRAMEWORK FOR FURTHER TALKS ON MACROECONOMIC ISSUES AND ON SPECIFIC INDUSTRIES THE US FAILED IN ITS BID TO GET JAPAN TO SET NUMERICAL TARGETS FOR REDUCING ITS TRADE SURPLUS IT DID SUCCEED IN GETTING JAPAN TO AGREE TO USE OBJECTIVE CRITERIA TO GAUGE PROGRESS IN OPENING CERTAIN MARKETS TO FOREIGNERS THOUGH THE DEFINITION OF THOSE CRITERIA WAS ALSO LEFT UNSPECIFIED IN TOKYO LAST WEEKEND US TREASURY UNDERSECRETARY LAWRENCE SUMMERS SAID THE JAPANESE HAVE COMMITTED TO US TO TAKE THE MEASURES THAT ARE NECESSARY TO ACHIEVE HIGHLY SIGNIFICANT REDUCTIONS IN THE BROADEST MEASURE OF ITS TRADE BALANCE ITS CURRENTACCOUNT SURPLUS YOU MAKE A HIGHLY SIGNIFICANT' REDUCTION IN A NUMBER THAT'S A LITTLE ABOVE 3 OF GROSS NATIONAL PRODUCT AND YOU DO IT OVER A FEW YEARS AND YOU'RE CERTAINLY BELOW 2 BUT MR OKAMATSU VICE MINISTER FOR INTERNATIONAL AFFAIRS FOR THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REITERATED THAT THERE IS NO SPECIFIC UNDERSTANDING OF WHAT HIGHLY SIGNIFICANT MEANS MOST ANALYSTS SAY JAPAN'S SURPLUS WITH THE WORLD WHICH HIT 107 BILLION LAST YEAR PROBABLY WILL EXCEED 120 BILLION THIS YEAR MR OKAMATSU SAID THAT IF THE YEN REMAINS STRONG AGAINST THE DOLLAR THE SURPLUS WILL PROBABLY GROW OR AT BEST PLATEAU IN 1994 AT SOME POINT HE ADDED JAPANESE MANUFACTURERS WILL MOVE MORE PRODUCTION ABROAD AND IMPORT MORE RAW MATERIALS TO CIRCUMVENT THE EFFECTS OF THE STRONG YEN MOVES THAT COULD DEPRESS JAPAN'S SURPLUS BUT HE SAID I THINK IT WILL TAKE MORE THAN THREE YEARS FOR SUCH A PHENOMENON TO OCCUR AND MR OKAMATSU SAID ANY IMPROVEMENT IN THE TRADE IMBALANCE ISN'T THE RESPONSIBILITY OF JAPAN ONLY IT DEPENDS ON THE CONDITION OF THE WORLD ECONOMIES ESPECIALLY THE POLICIES OF THE US IT IS VERY DIFFICULT TO PREDICT WHAT WILL HAPPEN IN FIVE YEARS JAPAN'S OFFICIALS HAVE SPENT THE WEEK POURING COLD WATER ON THE FRAMEWORK ACCORD A TOP FINANCE MINISTRY OFFICIAL HAS SAID THE ACCORD DOESN'T OBLIGE JAPAN TO STIMULATE ITS ECONOMY TO REDUCE THE TRADE SURPLUS ANOTHER TOP MINISTRY BUREAUCRAT SAID THE US TRADE NEGOTIATORS ARE STILL AMATEURS WHO LACK A CLEAR OBJECTIVE SOME OF THIS MAY BE AFTERTHEFACT RESISTANCE TO THE AGREEMENT AND A REFLECTION OF BUREAUCRATIC BATTLING IN JAPAN THE FOREIGN MINISTRY NOT MITI OR THE MINISTRY OF FINANCE WAS REPORTEDLY THE MAIN FORCE PUSHING FOR AN AGREEMENT WITH THE US SOMETIMES AGAINST THE WISHES OF THE OTHER MINISTRIES THAT SAID IT WILL BE MITI AND THE FINANCE MINISTRY THAT WILL IMPLEMENT THE AGREEMENT THE US WILL HAVE TO DEAL WITH THEM AS IT SEEKS TO RIGHT ITS TRADE IMBALANCE WITH JAPAN 9307150163 930715 INTERNATIONAL EXMONTEDISON CHIEF JAILED IN SWITZERLAND ITALY SEEKS EXTRADITION MILAN ITALIAN MAGISTRATES WERE TO TRAVEL TO SWITZERLAND TODAY TO QUESTION GIUSEPPE GAROFANO FORMER CHAIRMAN OF TROUBLED AGROCHEMICALS COMPANY MONTEDISON SPA FOLLOWING HIS ARREST TUESDAY NIGHT AFTER FIVE MONTHS AS A FUGITIVE MILAN MAGISTRATES CONSIDER MR GAROFANO BEING HELD IN A GENEVA JAIL A CENTRAL FIGURE IN ITALY'S SPREADING CORRUPTION SCANDALS AND A KEY WITNESS IN SEPARATE INVESTIGATIONS INTO ALLEGED IRREGULARITIES AT MONTEDISON'S DEBTSTRAPPED PARENT COMPANY FERRUZZI FINANZIARIA SPA THE MAGISTRATES WHO ISSUED AN ARREST WARRANT FOR MR GAROFANO LAST FEBRUARY YESTERDAY MADE A REQUEST FOR HIS EXTRADITION A SWISS LEGAL OFFICIAL SAID MR GAROFANO REPORTEDLY HAD JUST ARRIVED IN SWITZERLAND FROM FRANCE TO MEET WITH HIS LAWYER WHEN THE ARREST WAS MADE THE 49YEAROLD EXECUTIVE IS WANTED IN MILAN FOR ALLEGEDLY VIOLATING POLITICAL PARTY FINANCING LAWS IN CONNECTION WITH A PAYMENT OF 250 MILLION LIRE 157950 HE MADE TO THE CHRISTIAN DEMOCRATIC PARTY DURING HIS TENURE AS CHAIRMAN OF MONTEDISON FROM 1990 UNTIL THIS JANUARY BEFORE HE LEFT ITALY IN FEBRUARY MR GAROFANO TOLD INVESTIGATORS THE PAYMENT WAS A PERSONAL CONTRIBUTION MAGISTRATES ALLEGE THAT THE FUNDS CAME DIRECTLY FROM MONTEDISON MILAN MAGISTRATES ALSO WANT TO QUESTION MR GAROFANO ABOUT ALLEGED FINANCIAL IRREGULARITIES AT MONTEDISON AND FERRUZZI FINANZIARIA OF WHICH MR GAROFANO WAS ALSO CHIEF EXECUTIVE OFFICER STAGGERING UNDER THE WEIGHT OF 15 TRILLION LIRE IN DEBT FERRUZZI HAS TURNED OVER CONTROL OF THE GROUP TO CREDITOR BANKS MAGISTRATES BEGAN INVESTIGATING FERRUZZI LAST MONTH AFTER THE GROUP ANNOUNCED AN ADDITIONAL LOSS OF 320 BILLION LIRE FOR 1992 SENDING TOTAL 1992 LOSSES TO 1679 TRILLION LIRE 9307150162 930715 CANADIAN BOND AUCTION YIELDS OTTAWA THE CANADIAN GOVERNMENT REPORTED AN AVERAGE YIELD OF 7835 AT AN AUCTION OF 120 BILLION CANADIAN DOLLARS US9367 MILLION OF 8 BONDS DUE JUNE 1 2023 THE PRICE EQUIVALENT OF THE AVERAGE YIELD WAS 101877 THE PROCEEDS FROM THE AUCTION WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9307150161 930715 A BETTER US TARGET IN JAPAN THE CONSUMER BY BERNARD GORDON WITH THE SUMMIT BEHIND HIM KIICHI MIYAZAWA HAS GIVEN BILL CLINTON HIS BEST GOINGAWAY PRESENT HE'S TOLD THE PRESIDENT THAT JAPAN CANNOT ACCEPT MICKEY KANTOR'S INSISTENCE ON TARGETS BUT HE HAS AGREED TO THE GROWTH OF US EXPORTS IN JAPAN'S MARKET NOT A BAD DEAL FOR THE PRESIDENT SINCE EXPORT TARGETS NOT ONLY TEND TO BECOME EXPORT CEILINGS BUT WOULD ALSO HAVE STRENGTHENED JAPAN'S BUREAUCRACY THE PRESIDENT CAN NOW MOVE ON TO A NEW AGENDA BUT HE AND HIS PEOPLE ARE GOING TO HAVE TO ADOPT A TWOPART STRATEGY FIRST THEY NEED TO PUT AWAY THE BLUDGEON ALL THAT DOES IS CONFIRM THE DEEP FEAR OF THE JAPANESE THAT THEY ARE BEING VICTIMIZED SECOND THE US WILL HAVE TO SHOW THAT WHEN WE TALK ABOUT A PARTNERSHIP WE MEAN IT BUT THAT'S GOING TO REQUIRE THAT THE PRESIDENT'S PEOPLE DO THEIR HOMEWORK ON THE REAL STATE OF PLAY IN USJAPANESE TRADE LISTENING TO THE COMMON WISDOM THAT MOST OF OUR TOP EXPORTS TO JAPAN ARE RAW MATERIALS SUCH AS MAIZE RAW WOOD AND FISH WON'T DO IT THE REALITY IS THE OPPOSITE AND HAS BEEN FOR YEARS EASILY 60 OF OUR EXPORTS TO JAPAN ARE MANUFACTURED GOODS AND MOST OF THEM ARE OF THE HIGHTECH VARIETY THE ADJACENT TABLE SHOWS THE VALUE OF OUR TOP FIVE EXPORTS THROUGH 1991 AND IN 1992 THE TOP FOUR CATEGORIES WERE 39 BILLION FOR TRANSPORTATION 36 BILLION FOR OFFICE AND AUTOMATIC DATA PROCESSING EQUIPMENT AND PARTS 26 BILLION FOR ELECTRICAL MACHINERY AND 24 BILLION FOR CORK AND WOOD NEITHER WILL LISTENING TO THOSE WHO INSIST ON TALKING DOWN THE DOLLAR THAT POLICY HAS BEEN TRIED SINCE 1985 THE RESULT IS THAT WHILE THE VOLUME OF JAPAN'S OIL IMPORTS ROSE BY 26 COMPARED WITH 1985 ITS BILL LAST YEAR FOR OIL AND RELATED PRODUCTS WAS JUST 39 OF ITS 1985 COST THE REASON OIL IS DENOMINATED IN DOLLARS THAT MEANS WE'VE GIVEN JAPAN A HUGE DISCOUNT ON ITS COMMODITY IMPORTS AND AT THE SAME TIME NEARLY DOUBLED THE COST TO US FIRMS OF DOING BUSINESS IN JAPAN AND THE HIGH COST OF SETTING UP IN JAPAN RATHER THAN TARIFFS OR CLOSED MARKETS WAS LISTED BY AMERICANS THERE AS THE CHIEF DETERRENT TO GREATER US INVESTMENT AND EXPORTS THE PRESIDENT HAS GOT IT RIGHT IN TARGETING THE JAPANESE CONSUMER FOR THE BEST PART OF A YEAR JAPAN'S PRESS HAS BEEN CARRYING STORIES ABOUT THE RIGGED BIDS IN THE CONSTRUCTION BUSINESS LIBERAL DEMOCRATIC PARTY TIES TO GANGSTERS AND WHAT BROUGHT IT ALL OUT THE GOLD BARS IN SHIN KANEMARU'S HOUSE ALL THIS CONFIRMED WHAT ORDINARY FOLKS HAD LONG SUSPECTED THEY ARE BEING RIPPED OFF THE PRICES THEY PAY ARE CRAZILY HIGH COMPARED WITH JUST ABOUT ANYWHERE ELSE MORE AND MORE JAPANESE SEE THIS FIRSTHAND SINCE 10 MILLION TO 15 MILLION OF THEM TRAVEL OVERSEAS EACH YEAR A THIRD TO THE US ALONE WE HAD A GOOD ILLUSTRATION WHEN ONE OF MY WIFE'S JAPANESE FRIENDS CAME TO VISIT THE FIRST PLACE SHE WANTED TO SEE WAS THE LOCAL SAFEWAY TO CONFIRM THAT A 20POUND BAG OF RICE SELLS HERE FOR ABOUT 6 TO 7 AND NOT THE 45 TO 50 IT BRINGS IN JAPAN SURE JAPAN'S BUBBLE HAS BURST BUT THE US HAS HELD ITS SHARE OF THE JAPANESE MARKET OVER THE PAST TWO YEARS JAPAN'S IMPORTS FROM THE EUROPEAN COMMUNITY DROPPED 10 BUT FROM THE US HARDLY AT ALL IMPORTS IN 1990 WERE 524 BILLION IN 1992 522 BILLION FINALLY WHILE THE JAPANESE DON'T PARTICULARLY WELCOME THE NORTH AMERICAN FREE TRADE AGREEMENT THEY UNDERSTAND THE PRESSURES BEHIND IT BUT HOW CAN THE US SERIOUSLY CONSIDER EXTENDING NAFTA TO CHILE AND NOW TO ARGENTINA WHEN THERE ARE MORE ATTRACTIVE PROSPECTS IN ASIA SINGAPORE ALONE WITH JUST 28 MILLION PEOPLE BUYS MORE FROM THE US THAN THOSE TWO AND SOUTH KOREA AND TAIWAN ADD AN ADDITIONAL 15 BILLION EACH BUT EVERY TIME THE US MENTIONS CHILE AND ARGENTINA AS THE NEXT CANDIDATES FOR NAFTA OR WORSE YET INLUDES SINGAPORE JAPAN BEGINS TO THINK ABOUT ITS TRADING PARTNERS IN ASIA UNLESS WASHINGTON WANTS TO PROMOTE A WORLD OF REGIONAL BLOCS IT NEEDS TO CONSIDER KOREA TAIWAN AND YES JAPAN IN THAT FORMAT NOW THAT'S A REAL EYEPOPPER DESIGNED TO RESPOND TO JAPAN'S NEWFOUND EMPHASIS ON REFORM AND BILL CLINTON'S TALK OF A NEW AGENDA MR GORDON IS A FELLOW AT THE EASTWEST CENTER IN HAWAII AND PROFESSOR OF POLITICAL SCIENCE AT THE UNIVERSITY OF NEW HAMPSHIRE 9307150160 930715 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE PROMISE OF THE PAPERLESS OFFICE WHERE DOCUMENTS ARE ENTIRELY CREATED DISTRIBUTED READ AND STORED ON COMPUTERS HAS BEEN ABOUT AS RELIABLE AS THE PROMISE OF A CHECK IN THE MAIL ONE BASIC REASON IS THAT YOU OFTEN CAN'T BE SURE A DOCUMENT'S INTENDED RECIPIENTS WILL BE ABLE TO READ IT ON SCREEN THEY MAY HAVE AN INCOMPATIBLE COMPUTER SOFTWARE OR FONTS NOW ADOBE SYSTEMS 4159614400 THE BIG PRINTINGTECHNOLOGY COMPANY PROPOSES TO SOLVE THE PROBLEM WITH A NEW PRODUCT CALLED ACROBAT ACROBAT IS SOFTWARE THAT PERMITS COMPUTER USERS TO CREATE SPECIAL VERSIONS OF DOCUMENTS THEY PRODUCE IN THEIR FAVORITE PROGRAMS THESE SPECIAL FILES CAN BE READ ON OTHER PCSEVEN INCOMPATIBLE MACHINES REGARDLESS OF WHETHER A COMPUTER HAS THE PROGRAM FONTS OR GRAPHICS USED TO PRODUCE THE ORIGINAL ALL THE RECIPIENT NEEDS IS THE ACROBAT SOFTWARE WHICH DISPLAYS A CLOSE FACSIMILE OF THE ORIGINAL DOCUMENT WITH FONTS GRAPHICS AND LAYOUTS INTACT ACROBAT IS NOW AVAILABLE FOR USERS OF APPLE'S MACINTOSH COMPUTERS AND OF IBMCOMPATIBLE MACHINES RUNNING MICROSOFT'S WINDOWS SOFTWARE VERSIONS FOR MACHINES RUNNING PLAIN MSDOS AND THE UNIX OPERATING SYSTEM ARE IN THE WORKS A SIMILAR PRODUCT COMMON GROUND IS BEING SOLD BY A SMALL COMPANY CALLED NO HANDS SOFTWARE 4158025800 IT NOW SELLS ONLY A MAC VERSION BUT PLANS TO RELEASE A WINDOWS VERSION IN THE FALL AND I HAVE USED A PROTOTYPE OF THE LATTER AFTER SEVERAL WEEKS OF WORKING WITH BOTH PRODUCTS I'VE CONCLUDED THEY DO WORK INTERCHANGEABLY BETWEEN IBMS AND MACINTOSHES AND IN FACT REPRESENT A NOTABLE ADVANCE SOME COMPUTER USERS ESPECIALLY IN LARGE ORGANIZATIONS WITH COMPUTER NETWORKS WILL INDEED USE THEM TO DISTRIBUTE COMPLEX DOCUMENTS RATHER THAN SENDING OUT REAMS OF PAPER BUT EACH HAS IMPORTANT LIMITATIONS AND I DOUBT THEY WILL BRING ON THE TRULY PAPERLESS WORKPLACE DESPITE GRANDIOSE ADS BY ADOBE SHOWING A TALL STACK OF PAPER BEING CLEAVED BY AN AX IT'S IMPORTANT TO UNDERSTAND WHAT ACROBAT AND COMMON GROUND DON'T DO THEY DON'T YIELD UNIVERSAL DOCUMENTS THAT EXISTING SOFTWARE PROGRAMS CAN BE USED TO EDIT INSTEAD EACH PRODUCES ITS OWN UNIQUE TYPE OF FILE WHICH CAN BE DISPLAYED ON A SCREEN OR PRINTED OUT BUT NOT EDITED OR CHANGED THESE SPECIAL FILES CAN BE READ ONLY BY ANOTHER COPY OF ACROBAT OR COMMON GROUND THEY CAN BEST BE THOUGHT OF AS ELECTRONIC PRINTOUTS AND INDEED THEY ARE PRODUCED IN THE SAME MANNER AS A PRINTOUT FIRST YOU CREATE A DOCUMENT IN A FAMILIAR WORDPROCESSING PROGRAM OR OTHER SOFTWARE THEN YOU USE THE PRINT COMMAND AS IF COMMITTING THE FILE TO PAPER BUT YOU PRINT IT INSTEAD TO A SPECIAL ACROBAT OR COMMON GROUND SOFTWARE MODULE THAT RECORDS THE FILE'S IMAGE IN THE SPECIAL FILE FORMAT A RECIPIENT THEN USES ANOTHER COPY OF THE ACROBAT OR COMMON GROUND SOFTWARE TO READ IT OF THE TWO PROGRAMS ACROBAT IS THE RICHER AND MORE SOPHISTICATED ADOBE USES SPECIAL TECHNOLOGY THAT MIMICS THE FONTS IN THE ORIGINAL DOCUMENT AND ASSURES THE FIDELITY OF THE GRAPHICS AND TEXT AT ANY RESOLUTION THE BASIC 125 PROGRAM ACROBAT EXCHANGE LETS READERS ANNOTATE THE DOCUMENTS PLACE ELECTRONIC BOOKMARKS IN THEM AND EVEN CREATE LINKS BETWEEN WORDS AND PICTURES ON ONE PAGE AND THOSE ON ANOTHER BUT I FOUND THE SUBSTITUTE FONTS EMPLOYED BY ACROBAT DIDN'T ALWAYS LOOK GOOD ON SCREEN MOREOVER THE ACROBAT EXCHANGE PROGRAM AND ITS ACCOMPANYING FONT SOFTWARE REQUIRED MORE THAN TWO MEGABYTES OF MEMORY AND ABOUT THE SAME AMOUNT OF DISK SPACE ON MY MAC THE SPECIAL FONTS ALSO TAX PRINTERS HEAVILY MY GENUINE POSTSCRIPT LASER PRINTER CHOKED ON A SIMPLE NEWSLETTER ADOBE ALSO HAS FAILED TO MAKE AVAILABLE AN INEXPENSIVE READER PROGRAM FOR INDIVIDUAL USERS WHO WANT ONLY TO READ ACROBAT FILES NOT MANIPULATE THEM IN MORE SOPHISTICATED WAYS THE COMPANY OFFERS THE SIMPLE READER PROGRAM ONLY IN PACKS OF 50 FOR 2500 THOUGH ADOBE OFFICIALS HINT THAT WILL SOON CHANGE COMMON GROUND DOESN'T USE A FONTSUBSTITUTION TECHNOLOGY BUT INSTEAD CAPTURES A DOCUMENT AT ONLY FOUR COMMON RESOLUTIONS YET ITS DOCUMENTS OFTEN LOOKED BETTER TO ME ON SCREEN THAN ACROBAT'S AND PRINTED OUT MORE EASILY THE MAINSTREAM 125 COMMON GROUND PROGRAM USES ONLY HALF THE MEMORY AND A FOURTH OF THE DISK SPACE OF ACROBAT NO HANDS SAYS IT INTENDS TO DISTRIBUTE A NOFRILLS COMMON GROUND VIEWER FREE ON BULLETIN BOARDS AND COMMON GROUND CAN EMBED SUCH A VIEWER RIGHT IN THE DOCUMENT ELIMINATING THE NEED FOR RECIPIENTS TO HAVE ANY SEPARATE COMMON GROUND SOFTWARE BUT CLOSE EXAMINATION OF COMMON GROUND DOCUMENTS SHOWED SOME FLAWS IN THE RENDERING OF TEXT LAYOUTS THAT MIGHT SHOW UP ON HIGHRESOLUTION PRINTERS AND THE DOCUMENT FILES ARE LARGER THAN THOSE YIELDED BY ACROBAT THOSE WITH EMBEDDED VIEWERS ARE EVEN BIGGER AND CAN ONLY BE USED ON THE TYPE OF PC THAT PRODUCED THEM THE COMMON GROUND PROGRAM ISN'T AS VERSATILE AS ACROBAT EXCHANGE AND ITS WINDOWS VERSION IS STILL JUST A PROMISE THESE PRODUCTS MAY SAVE PAPER BY PERMITTING MORE DOCUMENTS TO BE PASSED AROUND ELECTRONICALLY BUT I SUSPECT MANY RECIPIENTS WILL STILL MAKE PRINTOUTS TO READ THAT'S BECAUSE THE TYPICAL SCREEN IS JUST TOO SMALL TO DISPLAY A FULL PAGE OF A FORMATTED DOCUMENT WITHOUT SO MUCH SCROLLING THAT THE READER GOES NUTS SOMEDAY THE COMMON MONITOR SIZE MAY BE LARGER OR STANDARD PAGE SIZES SMALLER BUT UNTIL THEN THAT AX DEPICTED IN ADOBE'S AD IS MORE LIKELY TO BE CHOPPING DOWN GROVES OF TREES THAN PILES OF PAPER MEMOS 9307150159 930715 BUSINESS BRIEF AMOCO CORP CANADIAN UNIT PLANS TO BEGIN OILSANDS PROJECT IN ALBERTA AMOCO CANADA PETROLEUM CO SAID IT PLANS TO START NEXT YEAR THE FIRST PHASE OF COMMERCIAL DEVELOPMENT OF ITS HUGE PRIMROSE OILSANDS PROJECT A SPOKESMAN FOR THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID THE COMPANY EXPECTS TO BEGIN FIELD WORK ON THE NORTHERN ALBERTA PROJECT LATE IN 1994'S THIRD QUARTER PENDING REGULATORY APPROVAL AMOCO CANADA A SUBSIDIARY OF CHICAGOBASED OIL COMPANY AMOCO CORP INITIALLY WILL SPEND 20 MILLION CANADIAN DOLLARS US156 MILLION TO C30 MILLION A YEAR ON THE PROJECT WHICH IT EXPECTS TO BE PRODUCING AT CAPACITY50000 BARRELS OF HEAVY OIL A DAYBY 2007 THE SPOKESMAN SAID MEANWHILE THE COMPANY SAID YESTERDAY THAT IT SIGNED A LETTER OF INTENT WITH CALGARY NATURALRESOURCES COMPANY ALBERTA ENERGY CO TO SWAP AMOCO'S 375 INTEREST IN SYNCRUDE CANADA LTD FOR C264 MILLION AND INTERESTS IN UNDEVELOPED PRIMROSE PROPERTIES 9307150157 930715 CAMPBELL SOUP FUND TO TAKE ACTIVIST ROLE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL MMMM MMM RADICAL CAMPBELL SOUP CO'S 1 BILLION PENSION FUND WILL SOON JOIN THE RANKS OF SHAREHOLDER ACTIVISTS STARTING WITH NEXT YEAR'S ANNUALMEETING SEASON THE BIG FOOD COMPANY'S PENSION FUND WILL BECOME ONE OF THE FIRST CORPORATE RETIREMENT PLANS TO TAKE A HIGHPROFILE ROLE IN PUTTING PRESSURE ON COMPANIES THAT DON'T FOLLOW BASIC CORPORATE GOVERNANCE PRINCIPLES WE'RE DOING THIS BECAUSE WE BELIEVE BOARDS OF DIRECTORS SHOULD PRACTICE WISE STEWARDSHIP SAYS A CAMPBELL SPOKESMAN IN CAMDEN NJ CAMPBELL IS EXPECTED TO ANNOUNCE THE NEW POLICY TODAY THE DEVELOPMENT COULD BE A SIGN THAT THE SHAREHOLDERRIGHTS MOVEMENT IS ABOUT TO SPREAD SAYS JOHN POUND A HARVARD PROFESSOR WHO FOLLOWS CORPORATE GOVERNANCE IT'S ABSOLUTELY INEVITABLE THAT CORPORATE PENSION FUNDS WILL NEED TO TAKE MORE ACTIVE POSITIONS SO FAR THE SHAREHOLDERRIGHTS MOVEMENT HAS BEEN OVERWHELMINGLY DOMINATED BY STATEEMPLOYEE PENSION FUNDS IN PARTICULAR THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM IN RECENT MONTHS THESE STATE PENSION FUNDS HAVE FOUGHT FOR AND WON A NUMBER OF CHANGES FROM POORLY PERFORMING COMPANIES BUT CORPORATE PENSION FUNDS GENERALLY HAVE BEEN SILENT MANY CORPORATE EXECUTIVES SIT ON ONE ANOTHER'S BOARDS HELP DECIDE EACH OTHER'S COMPENSATION AND SYMPATHIZE WITH FELLOW CHIEF EXECUTIVE OFFICERS UNDER FIRE FROM HOLDER ACTIVISTS MR POUND BELIEVES OTHER CORPORATE PENSION FUNDS WILL FOLLOW CAMPBELL'S LEAD THE VISIBILITY OF THESE ISSUES IS SUCH THAT YOU CAN'T SIT BY AND DO NOTHING HE SAYS IF THEY DO BECOME MORE INVOLVED CORPORATE PENSION FUNDS WILL BRING CONSIDERABLE CLOUT TO THE ISSUE OF SHAREHOLDER RIGHTS AT THE END OF LAST YEAR THEY OWNED 11 TRILLION IN STOCKS NEARLY HALF OF ALL INSTITUTIONAL OWNERSHIP OF SHARES THAT COMPARES WITH 464 BILLION IN STOCKS OWNED BY STATE AND LOCAL PENSION FUNDS CAMPBELL MAY BE UNIQUELY WELLPOSITIONED TO BE AN ACTIVIST BESIDES HIS OWN BOARD CAMPBELL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DAVID W JOHNSON SITS ON ONLY ONE OTHER CORPORATE BOARD THAT OF COLGATEPALMOLIVE CO WHERE HE WAS A TOP EXECUTIVE BEFORE JOINING CAMPBELL IN 1990 CAMPBELL IS ALSO DIFFERENT FROM MANY COMPANIES BECAUSE IT ISN'T A MEMBER OF THE BUSINESS ROUNDTABLE A GROUP OF EXECUTIVES WHO MEET REGULARLY TO DISCUSS BUSINESS ISSUES CAMPBELL DROPPED OUT OF THE BUSINESS ROUNDTABLE WHEN MR JOHNSON CAME ON BOARD CAMPBELL IS IN A FAIRLY GOOD POSITION TO THROW STONES IN ITS PROXY MATERIAL FOR THE FISCAL YEAR ENDING NEXT MONTH CAMPBELL WILL REPORT A 267 ANNUAL RETURN ON EQUITY FOR THE PAST FIVE YEARS COMPARED WITH 184 FOR ITS FOODCOMPANY PEER GROUP AND 137 FOR THE STANDARD & POOR'S 500 STOCKS IT ALSO HAS PUT IN PLACE A NUMBER OF CORPORATE GOVERNANCE INITIATIVES ITSELF FOR EXAMPLE 15 OF ITS 16 DIRECTORS ARE INDEPENDENT MEANING THEY AREN'T COMPANY EMPLOYEES IN MAY THE COMPANY ANNOUNCED A DECISION TO REQUIRE ITS EXECUTIVES TO OWN SPECIFIC AMOUNTS OF CAMPBELL STOCK IN PROPORTION TO THEIR SALARY IN ITS NEW ROLE AS A SHAREHOLDER ACTIVIST CAMPBELL IS STARTING SLOWLY UNLIKE CALPERS IN CALIFORNIA FOR EXAMPLE CAMPBELL DOESN'T PLAN TO DRAW UP A LIST OF SOCALLED CORPORATE TARGETS THAT IT MIGHT PRESS FOR CHANGES ITS STRATEGY INCLUDES TELLING ITS VARIOUS MONEY MANAGERS TO VOTE CAMPBELL'S PROXIES AGAINST COMPANIES THAT ELECT MORE THAN THREE INSIDE DIRECTORS OR REPRICE EXECUTIVE STOCK OPTIONS WHEN THE OLD ONES DON'T PROVE LUCRATIVE TO THE EXECUTIVES INVOLVED IT WILL ALSO VOTE ITS SHAREHOLDINGS IN FAVOR OF EXECUTIVE COMPENSATION POLICIES THAT LINK EXECUTIVE PAY TO STOCK PERFORMANCE MANY COMPANIES DON'T DIRECT THEIR PENSION MANAGERS TO VOTE WITH AN EYE TOWARD CORPORATE GOVERNANCE OFTEN WHEN COMPANIES DO VOTE THEIR PROXY STATEMENTS AT ANNUAL MEETINGS THEY FAVOR MANAGEMENT AND TEND TO RESIST SHAREHOLDER PROPOSALS 9307150156 930715 MARKETING & MEDIA WUSSLER SAID TO BE HELPING COSBY PREPARE BID FOR NBC NEW YORK FORMER CBS INC AND TURNER BROADCASTING SYSTEM INC EXECUTIVE ROBERT J WUSSLER IS WORKING WITH BILL COSBY AS PART OF THE ENTERTAINER'S EFFORT TO PUT TOGETHER A BID TO TAKE OVER THE NBC NETWORK ACCORDING TO PEOPLE FAMILIAR WITH THE PLANS MR COSBY AND MR WUSSLER HAVE RETAINED GOLDMAN SACHS & CO AS AN ADVISER AND ARE SAID TO BE SEEKING FUNDS TO PUT TOGETHER A BID OF AT LEAST 4 BILLION FOR THE NETWORK MR WUSSLER WHO DECLINED TO COMMENT WAS SAID BY THE PEOPLE FAMILIAR WITH THE PLANS TO BE MEETING WITH POTENTIAL INVESTORS IN TORONTO TODAY A SPOKESWOMAN FOR NATIONAL BROADCASTING CO A UNIT OF GENERAL ELECTRIC CO SAID THE NETWORK IS NOT FOR SALE MR COSBY HAS DECLINED TO COMMENT SINCE SAYING A MONTH AGO THAT HE DIDN'T WANT TO DISCUSS BUSINESS THAT WASN'T FINISHED 9307150155 930715 SKYWEST'S TRAFFIC ROSE IN JUNE ST GEORGE UTAH SKYWEST INC AN INDEPENDENT AIRLINE OPERATING UNDER A MARKETING AGREEMENT WITH DELTA AIR LINES SAID ITS TRAFFIC ROSE 89 IN JUNE THE CARRIER FLEW 273 MILLION REVENUE PASSENGER MILES IN JUNE UP FROM 25 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE ITS LOAD FACTOR THE PERCENTAGE OF SEATS OCCUPIED BY PAYING PASSENGERS ROSE TO 465 FROM 45 A YEAR EARLIER 9307150154 930715 INTERNATIONAL SEAGRAM VENTURE IN POLAND WARSAW SEAGRAM CO SAID IT FORMED A MARKETING SALES AND DISTRIBUTION OPERATION FOR ITS WINES AND SPIRITS BUSINESS IN POLAND THE UNIT SEAGRAM POLSKA SP ZO O IS PART OF SEAGRAM'S EXPANSION STRATEGY IN EASTERN EUROPEAN MARKETS SEAGRAM LAST YEAR OPENED SIMILAR OPERATIONS IN HUNGARY AND THE CZECH REPUBLIC AND THIS MONTH OPENED A FLAGSHIP RETAIL STORE IN UKRAINE PREVIOUSLY A NUMBER OF SEAGRAM BRANDS HAD BEEN MARKETED IN POLAND THROUGH THIRDPARTY DISTRIBUTORS 9307150153 930715 VIAG'S 93 PAYOUT IS STEADY BONN VIAG AG WILL PAY A 1993 DIVIDEND OF NINE MARKS 524 UNCHANGED FROM 1992 ALFRED PFEIFFER CHAIRMAN SAID VIAG AN ENERGY METALS AND CHEMICAL COMPANY WOULD BE ABLE TO MAINTAIN ITS DIVIDEND AT THE 1992 LEVEL BECAUSE OF AN EXPECTED RISE IN PROFIT HE DIDN'T SPECIFY HOW MUCH PROFIT INCREASED FOR 1992 VIAG POSTED PROFIT OF 371 MILLION MARKS DOWN 84 FROM THE YEAREARLIER LEVEL OF 405 MILLION MARKS 9307150151 930715 FIRST FINANCIAL MANAGEMENT PACT ATLANTA FIRST FINANCIAL MANAGEMENT CORP AN INFORMATIONSERVICES PROVIDER SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY TELECHECK OF KANSAS INC A CLOSELY HELD FRANCHISEE IN KANSAS CITY KAN FOR TELECHECK FIRST FINANCIAL'S CHECK VERIFICATION UNIT TERMS WEREN'T DISCLOSED 9307150150 930715 ECONOMY CONSUMER PRICES STEADY IN JUNE RETAIL SALES UP GOVERNMENT DATA ARE SEEN AS STRONG SIGN INFLATION IS BEING HELD IN CHECK BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LATEST GOVERNMENT READINGS ON THE ECONOMY ARE REASSURING CONSUMER PRICES DIDN'T CLIMB AT ALL LAST MONTH AND RETAIL SALES INCREASED SMARTLY THE CONSUMER PRICE INDEX WAS UNCHANGED IN JUNE AFTER RISING A TINY 01 THE MONTH BEFORE THE BEST BACKTOBACK REPORT ON PRICES IN TWO YEARS THE LABOR DEPARTMENT SAID A CLOSELY MONITORED MEASURE THAT EXCLUDES VOLATILE FOOD AND ENERGY PRICES WAS UP A SLIM 01 LAST MONTH AFTER RISING ONLY 02 IN MAY THE FAVORABLE REPORT COMING A DAY AFTER THE DEPARTMENT REPORTED THAT PRICES RECEIVED BY PRODUCERS DROPPED 03 IN JUNE WAS WIDELY INTERPRETED AS PROOF THAT THE INFLATION RATE ISN'T ACCELERATING DESPITE A SURGE EARLY IN THE YEAR IN RETROSPECT SAID GORDON RICHARDS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS CLAIMS OF AN INCIPIENT RISE IN THE INFLATION RATE EMERGE AS IRRESPONSIBLE SCAREMONGERING CONSUMER PRICES ROSE AT AN ANNUAL RATE OF ONLY 22 IN THE SECOND QUARTER AFTER CLIMBING AT A 4 RATE IN THE FIRST QUARTER SO FAR THIS YEAR THE LABOR DEPARTMENT SAID CONSUMER PRICES EXCLUDING FOOD AND ENERGY HAVE RISEN AT A 36 ANNUAL RATE UP SLIGHTLY FROM LAST YEAR'S 33 INCREASE THE SMALLEST IN 20 YEARS AS LONG AS THE INFLATION RATE APPEARS STABLE BETWEEN 3 AND 35 AND FINANCIAL MARKETS REMAIN CALM THE FEDERAL RESERVE IS LIKELY TO HOLD SHORTTERM INTEREST RATES STEADY ANALYSTS SAID IN A SEPARATE REPORT THE COMMERCE DEPARTMENT SAID THAT A 13 INCREASE IN AUTO SALES IN JUNE HELPED PUSH OVERALL RETAIL SALES UP BY 04 TO 17186 BILLION BEFORE ADJUSTING FOR INFLATION EXCLUDING THE SURGE IN AUTO AND RELATED SALES IN JUNE RETAIL SALES WERE UP A MODEST 01 THE DEPARTMENT ALSO MADE UPWARD REVISIONS TO ITS ESTIMATES FOR APRIL AND MAY FURTHER ENCOURAGING ANALYSTS WE'RE MOVING IN THE RIGHT DIRECTION SAID ROBERT WESCOTT OF WEFA GROUP A BALA CYNWYD PA FORECASTING FIRM WE CAN START TO SEE SOME BENEFICIAL EFFECTS OF LOWER INTEREST RATES IN THE DATA SALES OF BUILDING MATERIALS STALLED LAST MONTH BUT CLIMBED SIGNIFICANTLY IN THE TWO PREVIOUS MONTHS THEY WERE 85 HIGHER IN JUNE THAN A YEAR EARLIER SPENDING ON FURNITURE CONTINUED TO CLIMB IN JUNE AND IS RUNNING 98 HIGHER THAN LAST YEAR AUTO DEALERS' SALES WERE 13 ABOVE THE YEAREARLIER LEVEL WHILE OVERALL RETAIL SALES IN JUNE WERE 67 HIGHER THAN IN JUNE 1992 MR WESCOTT SAID THE RETAIL SALES REPORT IS COMPLETELY CONSISTENT WITH A GRADUALLY RECOVERING ECONOMY AND ESTIMATED THAT TOTAL CONSUMER SPENDING INCREASED AT AN ANNUAL RATE OF 3 IN THE SECOND QUARTER SUBSTANTIALLY FASTER THAN THE UNEXPECTEDLY SMALL 08 INCREASE IN THE FIRST QUARTER RETAILERS' AFTERTAX PROFITS IN THE FIRST QUARTER AVERAGED ONLY 08 OF SALES DOWN FROM 14 IN THE FOURTH QUARTER BUT BETTER THAN THE 04 LOSS REPORTED IN THE FIRST QUARTER OF LAST YEAR THE COMMERCE DEPARTMENT NOTED UNLIKE OTHER FIGURES RELEASED YESTERDAY THESE AREN'T ADJUSTED TO REMOVE USUAL SEASONAL PATTERNS IN JUNE PRICES OF FOOD AND ENERGY BOTH FELL AS DID THE LABOR DEPARTMENT'S PRICE INDEXES FOR TRANSPORTATION AND APPAREL THE LATTER REFLECTING LARGERTHANUSUAL DISCOUNTS ON SPRING AND SUMMER CLOTHING TOBACCO PRICES WHICH HAD CLIMBED SURPRISINGLY IN THE TWO PREVIOUS MONTHS FELL 16 IN JUNE MEDICALCARE PRICES CONTINUED TO RISE FASTER THAN THE PRICES OF OTHER THINGS CLIMBING 04 IN JUNE THEY WERE UP AT AN ANNUAL RATE OF 7 IN THE PAST THREE MONTHS MORE THAN THREE TIMES THE INCREASE IN THE OVERALL CONSUMER PRICE INDEX TICKETS FOR MOVIES THEATERS CONCERTS AND SPORTING EVENTS WERE UP TOO AND USEDCAR PRICES SHOT UP ANOTHER 08 IN JUNE USEDCAR PRICES HAVE RISEN 91 IN THE PAST YEAR NEW CAR PRICES ARE UP ONLY 22 THE LABOR DEPARTMENT'S MEASURE OF HOUSING COSTS WHICH MAY BE DISTORTING MONTHLY CHANGES IN CONSUMER PRICES WAS UP 03 IN JUNE WEEKLY EARNINGS OF PRODUCTION AND NONSUPERVISORY WORKERS FELL 1 IN JUNE AFTER ADJUSTING FOR INFLATION THE LARGEST DECLINE IN SIX MONTHS BOTH THE AVERAGE HOURLY WAGE AND THE LENGTH OF THE AVERAGE WORKWEEK WERE DOWN IN JUNE HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR JUNE MAY CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM JUNE 1992 WERE 9307150149 930715 ECONOMY US CRUDEOIL OUTPUT HITS 35YEAR LOW AND MANY SAY TURNAROUND IS UNLIKELY BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL CRUDEOIL PRODUCTION IN THE US FELL TO A 35YEAR LOW DURING THE FIRST HALF AND FEW IN THE PETROLEUM INDUSTRY SEE MUCH CHANCE OF A TURNAROUND SOON THE AMERICAN PETROLEUM INSTITUTE REPORTED THAT DOMESTIC CRUDE OUTPUT AVERAGED LESS THAN 69 MILLION BARRELS A DAY IN THE FIRST SIX MONTHS OF 1993 DOWN 55 FROM A YEAR EARLIER THE API CALLED THE DROP OF ABOUT 400000 BARRELS A DAY DISTURBING AND LARGER THAN EXPECTED THIS IS THE BEGINNING OF A NEW TREND IN CRUDEOIL PRODUCTION A MUCH MORE RAPIDLY FALLING TREND SAID EDWARD MURPHY THE API'S DIRECTOR OF STATISTICS MEANWHILE ACCORDING TO THE OIL INDUSTRY'S BIGGEST ASSOCIATION US PETROLEUM DEMAND ROSE A MODEST 15 IN THE FIRST HALF TO SLIGHTLY MORE THAN 171 MILLION BARRELS A DAY THE API SAID THE GRADUAL RISE IN FUEL CONSUMPTION COMBINED WITH LOWER CRUDE PRODUCTION IS RESULTING IN INCREASES IN OIL IMPORTS ANY EXPANSION OF IMPORTS IS SIGNIFICANT BECAUSE IT INCREASES US RELIANCE ON FOREIGN SOURCES IN VOLATILE REGIONS SUCH AS THE MIDDLE EAST CONTRIBUTES TO THE HIGH US TRADE IMBALANCE AND FURTHER SHRINKS A MAJOR DOMESTIC INDUSTRY IMPORTS OF CRUDE OIL AND PETROLEUM PRODUCTS JUMPED 92 IN THIS YEAR'S FIRST HALF TO AN AVERAGE OF NEARLY 83 MILLION BARRELS A DAY THAT WAS THE HIGHEST LEVEL SINCE 1990 THE API SAID ADDING THAT IMPORTS ACCOUNTED FOR 482 OF DOMESTIC DELIVERIES OF OIL FOR ANTITRUST AND OTHER REASONS THE API DOESN'T MAKE PREDICTIONS ON THE OILPRICE OUTLOOK OR ON FUTURE LEVELS OF PRODUCTION OR DEMAND BUT ANOTHER INDUSTRY ORGANIZATION THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA FORECASTS THAT THERE WON'T BE ANY LEVELING OF CRUDEOIL PRODUCTION UNTIL WELL AFTER A SHARP UPTURN IN WEAK PETROLEUM PRICES BECAUSE OF A SLUGGISH OIL MARKET THAT APPEARS TO BE OVERSUPPLIED BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CRUDE PRICES ARE DOWN NEARLY 3 A BARREL SINCE EARLY MAY WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE FELL BELOW 18 LAST WEEK FOR A TURNAROUND WE WOULD HAVE TO SEE A PRICE OF A MINIMUM 21 UP TO 23 A BARREL SAID SCOTT ESPENSHADE AN IPAA ECONOMIST EVEN THEN HE SAID THERE COULD BE A LONG INTERVAL BEFORE OIL OUTPUT LEVELED BECAUSE OF THE LAG TIME BEFORE DRILLING CHANGES HAVE AN IMPACT AFTER REACHING POSTWORLD WAR II LOWS LAST YEAR DRILLING ACTIVITY IN THE US HAS INCREASED THIS YEAR ACCORDING TO THE API WELL COMPLETIONS ROSE NEARLY 19 IN THE FIRST HALF BUT THAT WAS DUE TO HIGHER PRICES FOR NATURAL GAS WHICH HAVE MORE THAN DOUBLED SINCE FEBRUARY 1992 AND EVEN THE GAS WELLS BEING DRILLED ARE MOSTLY TO PRODUCE MORE FROM EXISTING FIELDS RATHER THAN TO FIND NEW RESERVES WE STILL AREN'T DOING ANY WILDCAT DRILLING SAID WAYNE SWEARINGEN A PETROLEUM CONSULTANT IN TULSA OKLA THE API'S MR MURPHY SAID DOMESTIC DRILLING FOR CRUDE OIL HELD BACK BY CONTINUED LOW PRICES AND A LACK OF ACCESS TO AREAS LIKELY TO CONTAIN LARGE NEW RESERVES FELL 13 IN THE FIRST SIX MONTHS OF 1993 THE FIRSTHALF LEVEL IS THE LOWEST FOR OIL DRILLING SINCE 1933 AND IS LESS THAN ONEFIFTH THE LEVEL OF THE EARLY 1980S HE SAID EXCEPT FOR A BRIEF PERIOD SEVERAL YEARS AGO US CRUDEOIL OUTPUT HAS DECLINED MOST YEARS SINCE 1985 BUT MR MURPHY NOTED THAT THE RATE OF DECLINE IS INCREASING INDEED HE SAID THE TREND FOR US CRUDE PRODUCTION IS PESSIMISTIC AT BEST 9307150148 930715 WHO'S NEWS CHAPARRAL STEEL CO CHAPARRAL STEEL CO MIDLOTHIAN TEXAS EUGENIO CLARIOND REYES RETANA 49 YEARS OLD DIRECTOR GENERAL OF GRUPO IMSA SA A MONTERREY MEXICO PRIVATE HOLDING COMPANY WITH BUSINESSES IN GALVANIZED SHEET STEEL STEEL BEAMS FIBERGLASS AND ALUMINUM EXTRUDED PRODUCTS WAS NAMED A NEW DIRECTOR OF THIS MAKER OF STEEL PRODUCTS HIS APPOINTMENT INCREASES CHAPARRAL'S BOARD SIZE TO SEVEN MEMBERS FROM SIX 9307150147 930715 CIT GROUP'S NET ROSE BY 15 IN 2ND QUARTER NEW YORK CIT GROUP HOLDINGS INC A 13 BILLION ASSETBASED FINANCE COMPANY SAID ITS NET INCOME IN THE SECOND QUARTER HIT A RECORD FOR ANY PERIOD AIDED BY HIGHER NET INTEREST REVENUE THE COMPANY SAID NET INCOME ROSE 15 TO 466 MILLION FROM 405 MILLION A YEAR EARLIER AND FIRSTHALF EARNINGS ROSE 16 TO 901 MILLION FROM 779 MILLION THE COMPANY IS 60OWNED BY DAIICHI KANGYO BANK LTD OF TOKYO AND 40 BY CHEMICAL BANKING CORP OF NEW YORK 9307150146 930715 WHO'S NEWS SHARPER IMAGE CORP SHARPER IMAGE CORP SAN FRANCISCO CRAIG WOMACK 42 YEARS OLD FORMER EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS SPECIALTY RETAILER WAS NAMED PRESIDENT SUCCEEDING FOUNDER RICHARD THALHEIMER 45 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9307150145 930715 HASBRO MATTEL ARE EXPECTED TO REPORT IMPROVED EARNINGS FOR SECOND QUARTER BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON ALTHOUGH THE TWO LARGEST TOY MAKERS IN THE US ARE EXPECTED TO REPORT IMPROVED SECONDQUARTER EARNINGS RESULTS OF OTHER MANUFACTURERS WILL BE LESSTHANSATISFACTORY THAT'S THE CONSENSUS OF TOY ANALYSTS WHO CITE CONTINUED CONSUMER JITTERS AND A RELATIVE LACK OF HOT NEW PLAYTHINGS ANALYSTS PREDICT THAT HASBRO INC THE US'S LARGEST TOY MAKER AND NO 2 MATTEL INC WILL REPORT EARNINGS UP 11 AND 35 RESPECTIVELY BUT FISHERPRICE INC WILL REPORT A 15 DECLINE IN NET INCOME AND BOTH TYCO TOYS INC AND LEWIS GALOOB TOYS INC WILL POST LOSSES ANALYSTS FORECAST WHILE STILL POPULAR WATER GUNS AND TROLL DOLLS AREN'T THE RAGE THEY WERE LAST YEAR AND NEW FADS HAVEN'T BEEN THE DRAWS THAT RETAILERS HAD ANTICIPATED THERE'S NOTHING INCREDIBLY HOT OUT THERE OTHER THAN THE WEATHER SAYS TOY BUYER STEPHEN SANDBERG THUS COMPANIES THAT MAKE A VARIETY OF TOYS FARED BETTER THAN FIRMS WITH FORTUNES TIED TO A FEW MUSTHAVES MANUFACTURERS THAT HAVE A STABLE OF STAPLE PRODUCTS WILL POST GAINS THOSE THAT DON'T WON'T SAYS DAVID LEIBOWITZ ANALYST FOR REPUBLIC NEW YORK SECURITIES CORP AMONG THE STANDOUTS DINOSAURS AND OTHER TOYS BASED ON STEPHEN SPIELBERG'S MOVIE BLOCKBUSTER JURASSIC PARK AMONG TOY MAKERS HASBRO HAS BEEN MOST IMPRESSIVE ANALYSTS SAY IN ADDITION TO JURASSIC PARK PLAYTHINGS WHICH LEAD THIS MONTH'S WHAT'S HOT LIST BY THE MAGAZINE TOY BOOK FIVE OTHER HASBRO TOYS MADE THE TOP 15 CHART GARY JACOBSON OF KIDDER PEABODY & CO ESTIMATES THE PAWTUCKET RI CONCERN HAD NET INCOME OF 29 CENTS A SHARE AND POSSIBLY A FEW PENNIES HIGHER IN THE SECOND QUARTER ENDED IN JUNE THAT COMPARES WITH 26 CENTS A SHARE A YEAR AGO REVENUE HE PREDICTS CLIMBED 4 TO 515 MILLION FROM 485 MILLION SALES GREW AT ALL HASBRO SUBSIDIARIES INCLUDING MILTON BRADLEY AND PARKER BROS WHICH BOTH MAKE BOARD GAMES AND AT PLAYSKOOL MAKER OF BARNEY TOYS MATTEL IN EL SEGUNDO CALIF IS EXPECTED TO REPORT EARNINGS OF 31 CENTS A SHARE COMPARED WITH 22 CENTS IN THE YEARAGO QUARTER WHEN THE COMPANY MADE PROVISIONS FOR DOUBTFUL RECEIVABLES FROM TROUBLED RETAILERS SAYS LAURIE SMITH AN ANALYST FOR SEIDLER AMDEC SECURITIES IN LOS ANGELES SHE ESTIMATES MATTEL HAD SECONDQUARTER SALES OF 405 MILLION ABOUT FLAT WITH 404 MILLION LAST YEAR MS SMITH NOTES THAT MATTEL NO LONGER DISTRIBUTES NINTENDO VIDEO GAMES IN ITALY WHICH ACCOUNTED FOR 25 MILLION IN SALES IN LAST YEAR'S QUARTER RESULTS AT MATTEL WHICH DOES 50 OF ITS BUSINESS ABROAD WERE ALSO DEPRESSED BY A STRONG DOLLAR MAKING FOREIGNCURRENCY SALES AND PROFIT APPEAR SMALLER MATTEL'S WOES IN THE BOYS' TOY ARENA CONTINUE SALES OF A LINE BASED ON THE LAST ACTION HERO HAVE LIKE THE MOVIE BEEN DISAPPOINTING BUT ATTACK PACK AND MIGHTY MAX DOOM ZONE TOYS HAVE BECOME SMALL HITS THE SALESDRIVING STAR HOWEVER CONTINUES TO BE BARBIE MATTEL RECENTLY TOLD ANALYSTS THAT THE DOLL'S SALES FOR THE FIRST FIVE MONTHS OF 1993 WERE UP 14 FROM THE YEARAGO PERIOD FISHERPRICE SPECIALIZES IN INFANT AND PRESCHOOL TOYS A MARKET CROWDED WITH COMPETITORS AND STYMIED BY VERY LITTLE RECENT GROWTH DECLINING RETAIL ORDERS THIS YEAR HAVE SPELLED TROUBLE FOR THE AURORA NY COMPANY KIDDER'S MR JACOBSON PREDICTS THE COMPANY WILL REPORT SECONDQUARTER EARNINGS OF 24 CENTS A SHARE DOWN FROM 28 CENTS FOR THE YEARAGO PERIOD THE DECLINE IS THE RESULT OF A 3 DROP IN SALES WHICH MR JACOBSON ESTIMATES WILL BE ABOUT 149 MILLION ESTIMATES BY OTHER ANALYSTS ON FISHERPRICE'S SECONDQUARTER RESULTS ARE LESS OPTIMISTIC THEY RANGE FROM EIGHT CENTS TO 19 CENTS A SHARE ON REVENUE OF ABOUT 145 MILLION ANOTHER MANUFACTURER FOR WHOM 1993 HASN'T BEEN GOOD IS TYCO TOYS IN MOUNT LAUREL NJ MS SMITH EXPECTS TYCO TO POST A LOSS OF EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF 25 CENTS A SHARE LAST YEAR NEARLY HALF OF THE YEARAGO EARNINGS CAME FROM A REVERSAL OF ACCRUAL FOR INCENTIVE COMPENSATION STEMMING FROM A DECLINE IN THE COMPANY'S STOCK TYCO WHOSE SALES WERE BUILT ON A STEADY SUCCESSION OF BESTSELLERS IN RECENT YEARS HASN'T BEEN ABLE TO CONTINUE THE MAGIC WHILE LAST YEAR'S SECONDQUARTER RESULTS WERE FUELED BY SALES OF LITTLE MERMAID MAGIC COPIER AND FAST TRAXX RADIOCONTROL VEHICLES TYCO HAS BEEN HARDPRESSED TO CREATE NEW STARS MS SMITH NOTES AS A RESULT SECONDQUARTER SALES PROBABLY DECLINED TO 145 MILLION FROM 147 MILLION A YEAR AGO SHE ESTIMATES HOWEVER THE COMPANY'S INTERNATIONAL BUSINESS BOLSTERED BY THE ACQUISITION OF UNIVERSAL MATCHBOX CONTINUES TO EXPAND AND SALES ARE EXPECTED TO PICK UP IN THE SECOND HALF MS SMITH ADDS BECAUSE LARGE DOLLS A COMPANY SPECIALTY ARE EXPENSIVE ITEMS MORE LIKELY TO BE PURCHASED AS THE HOLIDAYS APPROACH LEWIS GALOOB IN SAN FRANCISCO IS EXPECTED TO REPORT A SECONDQUARTER LOSS JOHN TAYLOR ANALYST FOR LH ALTON & CO ANTICIPATES THE LOSS WILL NARROW TO 35 CENTS TO 40 CENTS A SHARE FROM 53 CENTS IN LAST YEAR'S QUARTER HE ESTIMATES SALES AT ABOUT 30 MILLION UP 4 FROM 288 MILLION A YEAR AGO 9307150144 930715 TOYOTA GM VENTURE SAYS IT WILL GO AHEAD WITH BUMPER FACILITY DETROIT THE TOYOTA MOTOR CORPGENERAL MOTORS CORP JOINT VENTURE IN FREMONT CALIF SAID IT IS PRESSING AHEAD WITH A NEW PLASTIC BUMPER FACILITY AFTER ITS WORKERS APPROVED A FLEXIBLE WORK SCHEDULE THEY HAD EARLIER REJECTED LAST WEEK BY A 1698704 MARGIN WORKERS REPRESENTED BY THE UNITED AUTO WORKERS UNION APPROVED THE USE OF THREECREW OPERATIONS FOR CERTAIN AREAS OF THE NEW UNITED MOTOR MANUFACTURING INC JOINT VENTURE TWO WEEKS EARLIER THE WORKERS HAD REJECTED AN IDENTICAL PROPOSAL BY A 2TO1 MARGIN BETWEEN THE TWO VOTES UNION LEADERS WERE ABLE TO CONVINCE WORKERS THAT THE NEW AGREEMENT WAS CRUCIAL FOR JOB SECURITY AND THAT IT WOULDN'T ELIMINATE OVERTIME PAY AS WORKERS HAD FEARED BEFORE THE FIRST VOTE WORKERS WERE BASICALLY MISLED AND LIED TO BY THE OPPOSITION SAID GEORGE NANO BARGAINING CHAIRMAN FOR THE 3300 UAW WORKERS IN THE JOINT VENTURE THE NEW LABOR AGREEMENT WILL ALLOW THE JOINT VENTURE TO RUN THE NEW BUMPER FACILITY AND AN EXISTING METALSTAMPING PLANT 120 HOURS A WEEK INSTEAD OF THE STANDARD 80 HOURS BY USING THREE SEPARATE CREWS WORKING FOUR 10HOUR DAYS PER WEEK THE JOINT VENTURE SAID IT PLANNED TO BREAK GROUND TODAY FOR THE PLASTIC BUMPER FACILITY BECAUSE OF THE NEW LABOR AGREEMENT THE JOINT VENTURE COMPANY SAID IT WOULD ADD A MINIMUM OF 150 TO 200 JOBS ALTHOUGH UNION OFFICIALS HAVE SAID TOTAL EMPLOYMENT COULD EVENTUALLY RISE BY AS MUCH AS 1000 IN ADDITION TO THE NEW BUMPER FACILITY THE JOINT VENTURE PLANS TO INCREASE PRODUCTION OF TRUCKS TO 150000 A YEAR FROM 125000 MR NANO SAID 9307150143 930715 WHO'S NEWS GENERAL ELECTRIC CO APPOINTS 4 EXECUTIVES IN ASIAN OPERATIONS FAIRFIELD CONN GENERAL ELECTRIC CO PLACING MORE EMPHASIS ON ITS ASIAN OPERATIONS NAMED FOUR TOP EXECUTIVES IN THAT AREA DELBERT L WILLIAMSON 54 YEARS OLD WAS NAMED PRESIDENT AND REGIONAL EXECUTIVE OF GE INDUSTRIAL & POWER SYSTEMS ASIA A NEW POSITION MR WILLIAMSON WHO WILL WORK OUT OF HONG KONG WAS PREVIOUSLY VICE PRESIDENT OF GE INDUSTRIAL & POWER SYSTEMS SALES IN THE US GE SAID THAT DEMAND FOR POWER IN ASIA IS EXPECTED TO GROW AT MORE THAN TWICE THE WORLD RATE THROUGH THE NEXT DECADE AND ASIA IS EXPECTED TO GENERATE ABOUT 35 OF WORLD POWER GENERATION ORDERS DURING THAT TIME DURING THE PAST 12 MONTHS GE'S POWER GENERATION BUSINESS IN ASIA HAS LOGGED MORE THAN 17 BILLION IN ORDERS THE COMPANY ALSO NAMED STUART L DEAN 40 PRESIDENT OF GE CAPITAL SOUTHEAST ASIA SINGAPORE AND MICHAEL E PRALLE 37 PRESIDENT OF GE CAPITAL EAST ASIA HONG KONG BOTH NEW POSITIONS MR DEAN PREVIOUSLY WAS GENERAL MANAGER GE SOUTHEAST ASIA AREA OPERATION AND MR PRALLE WAS VICE PRESIDENT AND GENERAL MANAGER OF GE CAPITAL'S DISTRIBUTION FINANCIAL SERVICES BUSINESS IN THE US GE ALSO NAMED STEPHEN J BRANDON 46 VICE PRESIDENT SOUTHEAST ASIA A NEW POSITION MR BRANDON WILL DIRECT GE'S ACTIVITIES IN SOUTHEAST ASIA IN ADDITION TO HIS CURRENT ROLE AS GE'S NATIONAL EXECUTIVE IN MALAYSIA GE WITH 622 BILLION IN 1992 REVENUE HAS INTERESTS IN ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING 9307150142 930715 WHO'S NEWS ARMCO INC ARMCO INC PARSIPPANY NJ DAVID A HIGBEE 50 YEARS OLD WAS NAMED VICE PRESIDENT DIVERSIFIED BUSINESSES A NEW POSITION AT THIS STEELMAKER HE FORMERLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NATIONALOILWELL AN OIL FIELD MACHINERY AND EQUIPMENT MAKER OWNED BY ARMCO AND USX CORP 9307150141 930715 WHO'S NEWS SALEM SPORTSWEAR CORP SALEM SPORTSWEAR CORP HUDSON NH RICHARD EGAN WAS NAMED CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS SPORTS APPAREL MAKER TAKING OVER TWO POSITIONS HELD BY KYLE NAGEL 33 YEARS OLD WHO WILL BECOME THE COMPANY'S CHAIRMAN A SPOKESMAN FOR THE COMPANY SAID MR NAGEL'S MOVE TO CHAIRMAN A NEWLY CREATED POSITION IS BECAUSE HE WANTS TO GET MORE INVOLVED IN THE CREATIVE SIDE OF THE COMPANY AS OPPOSED TO THE OPERATIONAL SIDE MR EGAN 53 WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LEVOLOR CORP A PALO ALTO CALBASED MAKER OF WINDOW COVERINGS THE CHANGES ARE EFFECTIVE AUG 9 9307150140 930715 WHO'S NEWS OCCIDENTAL PETROLEUM CORP OCCIDENTAL PETROLEUM CORP LOS ANGELES SO BUD OGDEN SAID HE RESIGNED HIS EXECUTIVE VICE PRESIDENT POST TO PURSUE OTHER INTERESTS PRIMARILY IN THE COAL ARENA MR OGDEN 57 YEARS OLD ALSO HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OCCIDENTAL'S ISLAND CREEK COAL CORP SUBSIDIARY UNTIL ITS RECENT SALE TO CONSOL ENERGY INC PITTSBURGH THE ATTRACTION THAT BROUGHT ME TO OXY IS NO LONGER A PART OF OXY MR OGDEN SAID OCCIDENTAL WHICH NO LONGER HAS ANY COAL OPERATIONS HAS INTERESTS IN NATURAL RESOURCES CHEMICALS AND FOOD PROCESSING 9307150139 930715 ECONOMY CLINTON UNVEILS EMERGENCY AID FOR THE MIDWEST ASSISTANCE OF 248 BILLION COMES AS PRESIDENT FACES GOAL TO SHRINK DEFICIT BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL DES MOINES IOWA PRESIDENT CLINTON UNVEILED A 248 BILLION EMERGENCYASSISTANCE PROGRAM FOR THE FLOODRAVAGED MIDWEST A MOVE THAT FURTHER COMPLICATES HIS GOAL OF SHRINKING THE BUDGET DEFICIT DURING A TOUR OF THE REGION MR CLINTON SAID HE EXPECTS HIS PACKAGE TO GROW AS CONGRESS CONSIDERS IT IN THE COMING DAYS NONE OF THE MONEY IS DUE TO BE OFFSET BY TAX INCREASES OR SPENDING CUTS ELSEWHERE IN THE BUDGET AIDES SAID THE AID PACKAGE INCLUDES 800 MILLION FOR GENERAL EMERGENCYDISASTER RELIEF 900 MILLION TO COMPENSATE FOR CROP LOSSES 370 MILLION FOR SMALLBUSINESS ASSISTANCE 100 MILLION TO RECONSTRUCT DAMAGED LOWINCOME HOUSING AND 100 MILLION TO REBUILD ROADS AND BRIDGES AFFECTED BY THE FLOODING THE SPECTER OF NEW SPENDING ARISES JUST AS MR CLINTON FOCUSES ON WHAT HE HAS CALLED HIS TOP PRIORITY GETTING THROUGH CONGRESS A FIVEYEAR 500 BILLION DEFICITREDUCTION PLAN NOW THAT HE HAS RETURNED TO WASHINGTON FROM A 10DAY TRIP TO ASIA AND HAWAII HE IS EXPECTED TO SPEND MUCH OF HIS TIME BARGAINING WITH LAWMAKERS TO MAKE SURE THAT HAPPENS DESPITE THAT GOAL NEW SPENDING HAS BEEN MUCH ON THE PRESIDENT'S MIND LATELY AT THE GROUP OF SEVEN SUMMIT OF INDUSTRIALIZED NATIONS LAST WEEK HE PROMISED TO GIVE RUSSIA 125 MILLION IN CASH AND 250 MILLION IN US EXPORTIMPORT BANK LOANS AS PART OF A MULTILATERAL AID PACKAGE HE ALSO ENDORSED A MAJOR TRADE AGREEMENT THAT WOULD REDUCE TARIFF REVENUES SOMEWHAT EVEN HERE IN DES MOINES WHERE FLOOD WATERS HAVE DEVASTATED CROPS AND SHUT DOWN THE CITY'S DRINKINGWATER SUPPLY ONE CITIZEN AT AN OUTDOOR EVENT AND TWO PARTICIPANTS IN A RADIO CALLIN SHOW ASKED THE PRESIDENT WHAT AMOUNTED TO THE SAME QUESTION HOW COULD HE SEEK DEFICIT REDUCTION WHILE AT THE SAME TIME PROPOSING BIG OUTLAYS IN RESPONSE MR CLINTON DEFENDED HIS ACTIONS AND SAID THERE WAS NO CONTRADICTION SPENDING MORE NOW AT A TIME OF CRISIS WILL SAVE MONEY LATER FOR BOTH THE ECONOMY AND THE FEDERAL BUDGET HE SAID WHAT'S MORE LOWER INTEREST RATES LATELY HAVE SAVED THE GOVERNMENT MONEY COMPARED WITH PROJECTIONS SO WHILE THIS NEW SPENDING WILL CUT INTO THAT AT LEAST WE'LL STILL WIND UP WAY SHORT OF WHERE IT WAS PROJECTED HE SAID HE ADDED WHEN SOMETHING LIKE THIS HAPPENS YOU HAVE TO PUT PEOPLE FIRST SEPARATELY THE OFFICE OF THRIFT SUPERVISION TOLD SAVINGSANDLOAN ASSOCIATIONS IN THE FLOODED MIDWEST TO ADOPT GENEROUS LENDING PROCEDURES TO HELP REBUILD THOSE AREAS THE AGENCY SAID IT WILL GRANT TEMPORARY WAIVERS OF SOME RULES SUCH AS ONE THAT REQUIRES S&LS TO KEEP 65 OF THEIR ASSETS IN HOUSING LOANS IF THRIFTS EXPERIENCE A SUDDEN RISE IN DEPOSITS OF MONEY FROM INSURANCE PAYMENTS OR GOVERNMENT ASSISTANCE THEY CAN APPLY FOR TEMPORARY WAIVERS OF THAT REQUIREMENT THE OTS SAID THRIFTS WERE URGED TO WORK WITH BORROWERS TO RESTRUCTURE OR INCREASE LOANS IF NEEDED TO FINANCE RECONSTRUCTION OR REPAIRS THEY WERE ALSO URGED TO CONSIDER TEMPORARILY WAIVING CHARGES FOR LATE LOAN PAYMENTS BY FLOOD VICTIMS AND TO SEEK FEDERAL HELP UNDER ANY PROGRAMS THAT ARE DESIGNED TO AID POTENTIAL BORROWERS WHOSE CREDIT RISK WOULD OTHERWISE BE CONSIDERED TOO GREAT THE OTS SENT THE DIRECTIVES TO SAVINGS INSTITUTIONS IN ILLINOIS WISCONSIN MINNESOTA IOWA MISSOURI KANSAS SOUTH DAKOTA AND NEBRASKA ALBERT R KARR IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9307150137 930715 INTERNATIONAL PIRATES OFF CHINA REPORTEDLY ATTACK NORTH KOREAN SHIP BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG A NORTH KOREAN VESSEL WAS INTERCEPTED BOARDED AND LATER FIRED UPON IN THE SOUTH CHINA SEA ON WEDNESDAY ITS AGENT SAID THE ATTACK WAS THE LATEST IN A SERIES OF PIRATE RAIDS THAT HAVE PLAGUED SHIPPING ALONG CHINA'S COAST IN RECENT MONTHS ACCORDING TO THE SHIP'S HONG KONG AGENT HIGH LINE SHIPPING CO THE MARAUDERS FLED AFTER HONG KONG'S GOVERNMENT SENT A RESCUE HELICOPTER TO SEARCH FOR THE CARGO SHIP AND ASKED OFFICIALS IN GUANGDONG PROVINCE WHETHER CHINESE SECURITY VESSELS WERE INVOLVED IN THE INCIDENT THE SHIP THE KO MAL SHAN HAS A CREW OF 36 BUT NOBODY WAS SAID TO BE HURT IN THE ATTACK THE AGENT HAD FEW OTHER DETAILS VICTIMS OF OTHER ATTACKS IN AND NEAR CHINA HAVE SAID THE MARAUDERS OFTEN APPEAR TO BE CHINESE MILITARY OR COASTAL PATROL VESSELS THOUGH THEY BEAR NO IDENTIFYING INSIGNIA LAST WEEK RUSSIA ORDERED ITS PACIFIC FLEET TO PROTECT RUSSIAN VESSELS JAPAN ASKED CHINA TO CURB THE PIRACY AFTER JAPANESE SHIPS WERE ATTACKED THE HONG KONG GOVERNMENT HAD CONTACTED XINHUA NEWS AGENCY CHINA'S DE FACTO CONSULATE IN THE COLONY WHICH AGREED TO ASK GUANGDONG PROVINCE AUTHORITIES TO DETERMINE WHETHER OR NOT CHINESE SECURITY FORCES WERE INVOLVED IN THE ATTACK ON THE KO MAL SHAN BEFORE TAKING FURTHER ACTION WE MUST BE SURE THAT THIS IS AN ACT OF PIRACY INVOLVING PRIVATE INDIVIDUALS A SPOKESMAN SAID HONG KONG ALSO SENT A HELICOPTER IN SEARCH OF THE VESSEL BUT THE SEARCH WAS FRUITLESS HONG KONG ALSO PUT ITS AUXILIARY NAVY ON STANDBY PETER CHOI A SPOKESMAN FOR HONG KONG'S MARINE DEPARTMENT SAID THE KO MAL SHAN LEFT THE COLONY'S HARBOR LOADED WITH NEW AND USED CARS AT ABOUT 630 AM WEDNESDAY BOUND FOR NORTH KOREA VESSELS THAT HAVE BEEN ATTACKED AND HAD THEIR CARGOES SEIZED GENERALLY HAVE BEEN CARRYING CARS WHICH HAVE A HIGH RESALE VALUE IN SOUTH CHINA THE SHIP WAS INTERCEPTED NORTHEAST OF HONG KONG WATERS AT ABOUT 8 AM HIGH LINE SAID WHEN ARMED MEN FROM A SPEEDBOAT TOOK CONTROL OF THE VESSEL AND ORDERED THE SHIP'S CREW TO HEAD FOR AN UNKNOWN PORT LATER THE AGENT RECEIVED REPORTS THE SHIP HAD BEEN SURROUNDED BY FOUR OTHER VESSELS AND WAS UNDER GUNFIRE EARLY THURSDAY MORNING THOUGH THE SHIP RADIOED THAT THE RAIDERS HAD FLED AND IT WAS RESUMING ITS JOURNEY ALONG THE CHINESE COAST 9307150136 930715 MARKETING & MEDIA ROY SPEER SELLS 4 MILLION SHARES OF HOME SHOPPING BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOME SHOPPING NETWORK INC'S CHAIRMAN ROY M SPEER SOLD ALMOST FOUR MILLION SHARES OF THE SCANDALRIDDEN ELECTRONIC RETAILER MARKET PROFESSIONALS SAID ACCELERATING A DIVESTITURE OF HIS HOLDINGS THAT BEGAN IN THE LAST TWO WEEKS OF JUNE ACCORDING TO WALL STREET EXPERTS MR SPEER UNLOADED THE BLOCK OF SHARES REPRESENTING ALMOST 4 OF THE COMPANY'S FULLY DILUTED SHARES OUTSTANDING AT 13875 EACH OR 555 MILLION BEFORE BROKERAGE FEES MR SPEER COULDN'T BE REACHED FOR COMMENT AND THE COMPANY SAID IT DIDN'T KNOW WHO SOLD THE SHARES MR SPEER HAS EMERGED AS A CENTRAL FIGURE IN THE SCANDAL AT THE COMPANY WHICH INVOLVES NUMEROUS ALLEGATIONS OF KICKBACKS AND OTHER IMPROPRIETIES BY CURRENT OR FORMER EXECUTIVES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY HOME SHOPPING CLOSED AT 14125 DOWN 625 CENTS IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR SPEER SAID HE SOLD 46 MILLION HOME SHOPPING SHARES FROM JUNE 14 TO JUNE 30 AT 10 TO 12 A SHARE FETCHING A TOTAL OF 46 MILLION TO 552 MILLION BEFORE BROKERAGE FEES THE JUNE TRADING REPRESENTED 53 OF HIS COMMON STOCK HOLDINGS THE FILING SHOWED AFTER THE SALE YESTERDAY MR SPEER APPARENTLY NOW OWNS ONLY 42 MILLION SHARES OF CLASS B COMMON STOCK WHICH MUST BE CONVERTED TO COMMON STOCK BEFORE IT CAN BE SOLD ON THE OPEN MARKET ACCORDING TO MARKET PROFESSIONALS ALL OF MR SPEER'S TRADES INCLUDING THE SALE YESTERDAY WERE HANDLED BY OTA LP PURCHASE NY THROUGH A BROKER NAMED ROBERT SANTANGELO MR SANTANGELO IS THE SON OF FRANCIS R SANTANGELO A FINANCIAL CONSULTANT TO HOME SHOPPING AND CLOSE SPEER FRIEND WHO ALSO HAS BEEN IMPLICATED AS A CENTRAL FIGURE IN THE SCANDAL IN ONE OF NUMEROUS LAWSUITS RELATED TO THE CONTROVERSY A FORMER HOME SHOPPING GENERAL COUNSEL ACCUSED THE ELDER MR SANTANGELO OF HAVING TIES TO THE GAMBINO CRIME FAMILY MR SANTANGELO VIGOROUSLY DENIED THE ALLEGATION AND SUED HIS ACCUSER ALLEN ALLWEISS ALLEGING SLANDER AN OFFICIAL OF OTA DECLINED TO COMMENT SAYING THE YOUNGER MR SANTANGELO WAS UNAVAILABLE THE OFFICIAL ALSO DECLINED TO COMMENT ON RUMORS THAT MR SPEER WAS AT THE FIRM WHEN THE BLOCK OF SHARES WAS TRADED WITH YESTERDAY'S VOLUME OF 62 MILLION SHARES HOME SHOPPING HAS BEEN THE MOST ACTIVELY TRADED STOCK FOR THE PAST THREE SESSIONS HEAVY TRADING WAS TRIGGERED BY A PROPOSAL FROM QVC NETWORK INC TO MERGE WITH HOME SHOPPING IN A STOCK SWAP VALUED AT AS MUCH AS 14 BILLION 9307150135 930715 WHO'S NEWS SCIENTIFICATLANTA INC SCIENTIFICATLANTA INC ATLANTA WILLIAM A GEIST 40 YEARS OLD WAS APPOINTED VICE PRESIDENT INFORMATION TECHNOLOGY AND SERVICES FOR THIS MAKER OF TELECOMMUNICATIONS EQUIPMENT HE MOST RECENTLY WAS VICE PRESIDENT INFORMATION SERVICES AT REICHHOLD CHEMICALS A POLYMER MAKER IN RESEARCH TRIANGLE PARK NC AND A UNIT OF TOKYOBASED DAINIPPON INK & CHEMICAL CO 9307150134 930715 TECHNOLOGY & HEALTH SERIOUSDEPRESSION PATIENTS' TREATMENT IS SAID TO VARY BY TYPE OF HEALTH PLAN BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SUGGESTS THAT PEOPLE SUFFERING FROM SERIOUS DEPRESSION FARE BETTER WHEN TREATED BY PSYCHIATRISTS IN A FEEFORSERVICE HEALTH PLAN THAN UNDER PREPAID MANAGED CARE BUT FOR MILDER FORMS OF DEPRESSION THAT AFFLICT THE MAJORITY OF MENTAL HEALTH PATIENTS THE STUDY PROVIDES SOME ASSURANCE THAT PATIENTS DO EQUALLY WELL UNDER BOTH FEEFORSERVICE AND PREPAID HEALTH PLANS THE REPORT RAISES TROUBLING QUESTIONS ABOUT THE ADEQUACY OF PSYCHIATRIC CARE PROVIDED TO PARTICULARLY SICK PATIENTS IN SOME PREPAID HEALTH PLANS IT ALSO REFLECTS BROADER CONCERNS ABOUT THE QUALITY OF MENTAL HEALTH TREATMENT THROUGHOUT THE US HEALTHCARE SYSTEM MANY DEPRESSED PATIENTS AREN'T GETTING ADEQUATE CARE REGARDLESS OF WHO IS TREATING THEM OR WHICH FORM OF INSURANCE COVERAGE THEY HAVE SAID KENNETH B WELLS A RESEARCHER AT RAND CORP SANTA MONICA CALIF AND A COAUTHOR OF THE STUDY IT APPEARS IN THE CURRENT ISSUE OF ARCHIVES OF GENERAL PSYCHIATRY A PUBLICATION OF THE AMERICAN MEDICAL ASSOCIATION THE STUDY IS BASED ON 627 PATIENTS WHO WERE TREATED EITHER BY PSYCHIATRISTS PSYCHOLOGISTS OR OTHER THERAPISTS OR PRIMARYCARE DOCTORS IN BOTH FEEFORSERVICE AND PREPAID PLANS AND FOLLOWED FOR TWO YEARS ABOUT 20 OF PATIENTS WHO HAD THE MOST SEVERE SYMPTOMS WERE TREATED BY PSYCHIATRISTS RESULTS VARIED AMONG THE PREPAID HEALTH MAINTENANCE ORGANIZATIONS THE REPORT FOUND THAT PATIENTS TREATED BY PSYCHIATRISTS IN PREPAID PLANS REPORTED SIGNIFICANT DECLINES IN THEIR ABILITY TO WORK AROUND THE HOUSE OR AT A PAYING JOB WHILE THOSE IN A FEEFORSERVICE SETTING IMPROVED IN THESE AND OTHER FUNCTIONAL MEASURES IN ADDITION THESE PATIENTS IN PREPAID PLANS WERE MORE LIKELY TO STOP TAKING ANTIDEPRESSANT DRUGS TO LEAVE THEIR PSYCHIATRISTS AND TO CHANGE THEIR INSURANCE COVERAGE DURING THE TWO YEARS OF THE STUDY THAN THOSE IN FEEFORSERVICE PLANS WE THINK BUT WE CAN'T PROVE THAT UNDER PREPAID CARE WITH PSYCHIATRISTS PATIENTS WEREN'T GETTING FOLLOWUP CARE AS EFFECTIVELY AS THEY WERE IN FEEFORSERVICE SAID WILLIAM ROGERS A SENIOR SCIENTIST AT RAND AND THE LEAD AUTHOR OF THE STUDY INDEED INITIALLY THE LEVEL OF TREATMENT FROM PSYCHIATRISTS IN THE PREPAID PLANS WAS HIGH WITH 75 OF THEIR PATIENTS GETTING ANTIDEPRESSANT MEDICATIONS FOR INSTANCE BUT THERE WAS THIS DROPOFF OVER TIME SAID DR WELLS WHO IS ALSO A PROFESSOR OF PSYCHIATRY AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES DR WELLS NOTED THAT SERIOUS DEPRESSION IS A COMMON CHRONIC AILMENT AND SAID THAT ALL PATIENTS IN THE STUDY INCLUDING THOSE CONSIDERED TO HAVE MILDER SYMPTOMS WERE SICK ENOUGH TO HAVE HAD SUICIDAL THOUGHTS OR SIMILAR DEBILITATING SYMPTOMS MANY PATIENTS WERE GETTING BETTER UNDER BOTH PAYMENT PLANS AS PROPOSALS FOR OVERHAULING THE US HEALTH SYSTEM FOCUS ON PREPAID HEALTH PLANS THE STUDY UNDERSCORES THE PLIGHT OF THE SICKEST PATIENTS HE SAID IF SERVICES ARE CUT BACK OVER TIME UNDER PREPAID CARE THEN PEOPLE WHO NEED EXTENDED CARE COULD SUFFER THE REPORT IS PART OF THE MEDICAL OUTCOMES STUDY A 12 MILLION EFFORT BASED AT RAND AND THE NEW ENGLAND MEDICAL CENTER BOSTON TO ASSESS THE EFFECT OF DIFFERENCES IN PRACTICE SETTING PHYSICIAN SPECIALTIES AND PAYMENT SYSTEMS ON PATIENT HEALTH 9307150133 930715 WHO'S NEWS PORTLAND GENERAL CORP PORTLAND GENERAL CORP PORTLAND ORE CAROLYN CHAMBERS 61YEAROLD PRESIDENT AND OWNER OF CHAMBERS COMMUNICATION CORP AND JEROME J MEYER 55 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TEKTRONIX INC WERE ELECTED DIRECTORS OF THIS ELECTRIC ENERGY COMPANY AND ITS SUBSIDIARY PORTLAND GENERAL ELECTRIC CORP THEIR ADDITION INCREASES BOTH BOARDS TO 14 9307150132 930715 TREASURY IS URGED TO LOOK AT ISSUING FLOATINGRATE DEBT BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY'S PRIVATESECTOR DEBT ADVISORY PANEL URGED THE DEPARTMENT TO CONSIDER ISSUING FLOATINGRATE NOTES STRESSING THAT SUCH INSTRUMENTS COULD EASE POTENTIAL FUNDING DIFFICULTIES DOWN THE ROAD THE TREASURY ADVISORY COMMITTEE OF THE PUBLIC SECURITIES ASSOCIATION RECOMMENDED THAT THE DEPARTMENT STUDY THE POSSIBILITY OF SELLING FLOATINGRATE NOTES WITH MATURITIES OF AS LONG AS FIVE YEARS WITH THE INTEREST RATE INDEXED TO 13WEEK TREASURY BILL RATES AND RESET AS FREQUENTLY AS WEEKLY IF THE DEPARTMENT ADOPTS THE APPROACH SKETCHED BY THE BORROWING COMMITTEE THE SUGGESTED WEEKLY REPRICING FEATURE WOULD KEEP THE FLOATINGRATE NOTES VERY CLOSE TO PAR BOND MARKET PARTICIPANTS SAID THE PROPOSAL NOT TO BE CONFUSED WITH CONVENTIONAL RECOMMENDATIONS THAT THE TREASURY SELL LONGTERM BONDS INDEXED TO INFLATION STEMS FROM THE PANEL'S VIEW THAT THE TREASURY'S HUGE BORROWING NEEDS AND ITS DECISION TO SCALE BACK ON LONGTERM BOND SALES MAY REQUIRE THE DEPARTMENT TO LOOK FOR NEW INVESTORS SUCH FLOATINGRATE NOTES WOULD DRAW STRONG INVESTOR INTEREST BOTH DOMESTICALLY AND INTERNATIONALLY FROM VARIOUS TYPES OF INVESTORS INCLUDING MONEY MARKET MUTUAL FUNDS ACCORDING TO THE PANEL WHICH IS COMPOSED OF VETERAN BOND MARKET PARTICIPANTS A TREASURY SUMMARY ACCOMPANYING THE PSA PANEL'S REPORT SAID SEVERAL MEMBERS SUGGESTED THAT THERE IS A LARGE MARKET FOR FLOATINGRATE PAPER THAT WOULD REMAIN AT OR NEAR PAR VALUE REGARDLESS OF MARKET CONDITIONS THAT FLOATERS MIGHT REDUCE TREASURY FINANCING COSTS THAT FLOATERS COULD MITIGATE REFINANCING RISK AND THAT THEY MIGHT APPEAL TO DIFFERENT INVESTORS IF INTRODUCED EARLY INTO THE TREASURY'S BORROWING ARSENAL POSSIBLY ON A QUARTERLY BASIS AND BUILT UP SLOWLY DEPENDING ON INVESTOR DEMAND SUCH AN OFFERING MIGHT PLAY A SIGNIFICANT ROLE IN MODERATING THE FUNDING DIFFICULTIES THAT CAN NOW EASILY BE FORESEEN THE PANEL SAID THE SOCALLED BORROWING COMMITTEE BLUNTLY WARNED THAT INTEREST SAVINGS PROJECTED FROM THE TREASURY'S NEW RELIANCE ON SHORTERTERM BORROWING COULD EVAPORATE IF LARGERTHANEXPECTED BUDGET DEFICITS MATERIALIZE AND ROIL FINANCIAL MARKETS IN MAY THE TREASURY ANNOUNCED IT WAS CUTTING BACK SHARPLY ON LONGTERM BONDS AND ELIMINATING THE SALE OF SEVENYEAR NOTES THE COMMITTEE SAID THE TREASURY UNDER CURRENT PROJECTIONS WOULD HAVE NET NEW PUBLIC BORROWING CONSISTENTLY ABOVE 225 BILLION ANNUALLY OVER THE FISCAL 19941998 PERIOD EVEN IF PRESIDENT CLINTON'S BUDGET PROPOSALS ARE ENACTED DETAILS OF THE TREASURY'S NEXT QUARTERLY REFUNDING ARE SCHEDULED TO BE ANNOUNCED EARLY NEXT MONTH AT THAT TIME THE DEPARTMENT IS LIKELY TO ANNOUNCE THAT IT WILL ACCEPT THE PANEL'S RECOMMENDATION TO STUDY THE POSSIBILITY OF SELLING FLOATINGRATE NOTES IN ADDITION THE TREASURY SOMETIME NEXT MONTH IS EXPECTED TO DETERMINE WHETHER ITS ONEYEAR EXPERIMENT WITH THE SINGLEPRICE OR DUTCH AUCTION TECHNIQUE UNDER WHICH ALL SUCCESSFUL BIDDERS RECEIVE BONDS AT THE SAME PRICE HAS BEEN A SUCCESS OR FAILURE 9307150131 930715 POWER SECURITIES CORP IS ORDERED TO GIVE UP 169 MILLION IN PROFITS DENVER A FEDERAL JUDGE ORDERED A DEFUNCT PENNYSTOCK FIRM TO GIVE UP ABOUT 169 MILLION IN PROFITS FROM ALLEGEDLY FRAUDULENT SECURITIES ACTIVITIES THE JUDGE'S ORDER AGAINST POWER SECURITIES CORP WAS PART OF A DEFAULT JUDGMENT BASED ON THE FIRM'S FAILURE TO CONTEST CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION FOR MORE THAN A YEAR DEFAULT JUDGMENTS ARE NOTORIOUSLY DIFFICULT TO COLLECT WE WILL TAKE ACTION TO DETERMINE WHETHER THERE ARE ANY ASSETS OUT THERE THAT WE CAN RECOVER SAID CHRIS BERLEW BRANCH CHIEF IN THE SEC'S ENFORCEMENT DIVISION THE SEC WILL BE LOOKING TO COLLECT A TOTAL JUDGMENT OF ALMOST 256 MILLION INCLUDING 86 MILLION IN INTEREST ADDED BY THE JUDGE THE SEC FILED SUIT AGAINST POWER SECURITIES AND SEVERAL OF ITS OFFICIALS IN 1990 ACCUSING THEM OF MARKET MANIPULATION INSIDER TRADING CHARGING EXCESSIVE AND UNDISCLOSED MARKUPS AND USING FRAUDULENT SALES PRACTICES IN THEIR PENNYSTOCK OPERATIONS FROM LATE1987 THROUGH EARLY1989 THE AGENCY SAID POWER SECURITIES CEASED OPERATIONS IN 1989 THE FIRM WAS ORIGINALLY BASED IN DENVER AND LATER MOVED ITS HEADQUARTERS TO LAS VEGAS 9307150128 930715 INTERNATIONAL BRITISH FRAUD SQUAD LAUNCHES PROBE OF DEFUNCT LLOYD'S OF LONDON MEMBER BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE LONGRUNNING SAGA OF FINANCIAL WOES AT LLOYD'S OF LONDON INSURANCE EXCHANGE TOOK A NEW TWIST AS BRITISH POLICE CONFIRMED THAT THEY ARE INVESTIGATING ONE OF THE EXCHANGE'S FORMER MEMBER FIRMS A SPOKESWOMAN FOR BRITAIN'S SERIOUS FRAUD OFFICE GAVE NO DETAILS SAYING ONLY THAT IT AND LONDON POLICE ARE INVESTIGATING THE AFFAIRS OF GOODA WALKER LTD AN UNDERWRITING FIRM THAT WAS LIQUIDATED IN 1991 WITH LOSSES OF NEARLY 1 BILLION 15 BILLION FOR ITS MORE THAN 4000 INVESTORS LLOYD'S INVESTORS OR NAMES ARE DUNNED TO COVER THE LOSSES OF SYNDICATES THEY JOIN UNDER LLOYD'S RULES PROVIDING FOR UNLIMITED LIABILITY FOR UNDERWRITING LOSSES THE INVESTIGATION IS THE FIRST DISCLOSED POLICE INTEREST IN THREE YEARS OF HEAVY LOSSES AT LLOYD'S EXCHANGE AUTHORITIES GENERALLY HAD CHALKED UP THE LOSSES TO BAD LUCK OR BAD UNDERWRITING A LLOYD'S SPOKESMAN NOTED THERE ISN'T ANY HIDDEN POT OF GOLD AND THIS INVESTIGATION ISN'T GOING TO HELP RECOVER THE LOSSES FOR INSURANCE UNDERWRITTEN IN 1990 THE MOST RECENT YEAR FOR WHICH LLOYD'S HAS POSTED RESULTS THE LOSSES TOTALED 291 BILLION THE LOSSES TOTALED 21 BILLION IN 1989 AND 510 MILLION IN 1988 THE DEMAND TO PAY CLAIMS ON THE LOSSMAKING INSURANCE CONTRACTS RISKS BANKRUPTING THOUSANDS OF LLOYD'S NAMES AND HAS ALREADY PROMPTED AN EXODUS OF INVESTORS FROM THE EXCHANGE THE NUMBER OF ACTIVE LLOYD'S MEMBERS HAS DWINDLED NEARLY 40 TO 19537 THIS YEAR FROM A PEAK OF 32433 IN 1988 A SERIES OF UNDERWRITING SYNDICATES MANAGED BY GOODA WALKER WERE AMONG THE BIGGEST LOSERS ON THE EXCHANGE THE SYNDICATES' MEMBERS HAVE BEEN ASKED TO PAY AN AVERAGE OF 134000 TO COVER LOSSES AND FURTHER DUNNING NOTICES ARE EXPECTED ACCORDING TO LLOYD'S LIST INTERNATIONAL AN EXCHANGE PUBLICATION ONE GOODA WALKER INVESTOR WAS SO DISTRAUGHT BY THE PROSPECT OF FINANCIAL RUIN THAT HE HANGED HIMSELF LAST APRIL A CORONER'S INQUEST WAS TOLD TUESDAY THE POLICE INVESTIGATION FOLLOWS THE OPENING OF A GOODA WALKER PROBE COMMISSIONED BY THE EXCHANGE THE EXCHANGE SPOKESMAN SAID THAT STUDY DEALS WITH ALLEGATIONS THAT GOODA WALKER'S ACCOUNTS MAY HAVE BEEN FALSIFIED TO ATTRACT INVESTORS TO ITS UNDERWRITING SYNDICATES SPECIFICALLY UNDER INVESTIGATION IS WHETHER CERTAIN REINSURANCE CONTRACTS IN THE FIRM'S BOOKS WERE GENUINE A SPOKESMAN FOR GOODA WALKER'S LIQUIDATORS COULDN'T BE REACHED YESTERDAY 9307150127 930715 BPT PROPERTIES IN MEXICO WASHINGTON BPT PROPERTIES A JOINT VENTURE BETWEEN NEW YORK DEVELOPER GEORGE KLEIN AND BECHTEL INVESTMENTS REALTY INC HAS BEEN RETAINED BY ONE OF MEXICO'S LARGEST BANKS TO ADVISE IT ON ITS DOMESTIC REAL ESTATE EXPANSION BANCOMER SA A SUBSIDIARY OF GRUPO FINANCIERO BANCOMER RETAINED THE WASHINGTONBASED DEVELOPMENT AND MANAGEMENT FIRM TO ADVISE IT ON ITS PLANNED ADDITION OF 200 BRANCHES CONSTRUCTION OF REGIONAL HEADQUARTERS BUILDINGS RENOVATION OF ITS NATIONAL HEADQUARTERS IN MEXICO CITY AND POSSIBLE CONSTRUCTION OF AN ADJACENT OFFICE TOWER THERE TERMS OF THE AGREEMENT WERE NOT DISCLOSED SAN FRANCISCOBASED BECHTEL INVESTMENTS REALTY A SUBSIDIARY OF THE FREMONT GROUP INC IS SEPARATE FROM THE BECHTEL GROUP INC ITS JOINT VENTURE WITH MR KLEIN'S NEW YORKBASED PARK TOWER GROUP WAS FORMED IN 1988 9307150126 930715 FINANCING BUSINESS REDMAN INDUSTRIES INC REDMAN INDUSTRIES INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED INITIAL PUBLIC OFFERING OF 43 MILLION COMMON SHARES AT AN ESTIMATED PRICE OF 14 TO 16 A SHARE THE STATEMENT COVERS THE SALE OF 29 MILLION SHARES BY THE DALLAS COMPANY AND 14 MILLION SHARES BY A SELLING SHAREHOLDER REDMAN WHICH MAKES MANUFACTURED HOUSING SAID IT WILL USE ITS PROCEEDS TO REPAY DEBT AND TO REDEEM PREFERRED STOCK THE OFFERING IS BEING UNDERWRITTEN BY A GROUP LED BY DILLON READ & CO 9307150125 930715 DIVERSIFAX TO BUY FOUR FIRMS NEW YORK DIVERSIFAX INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE FOUR CLOSELY HELD COPYMACHINE COMPANIES FOR ABOUT 55 MILLION OF ITS SHARES BASED ON DIVERSIFAX'S PRICE OF 3 7/8 A SHARE IN COMPOSITE OVERTHECOUNTER TRADING YESTERDAY THE AGREEMENT IS WORTH AN INDICATED 213 MILLION THE COMPANIES TO BE ACQUIRED IMSG SYSTEMS INC NATIONAL COPY CORP ADVANCED BUSINESS SYSTEMS AND CAPITAL COPY CO HAVE TOTAL YEARLY REVENUES APPOACHING 6 MILLION DIVERSIFAX WHICH OWNS AND OPERATES 130 CREDIT CARDACTIVATED FAX MACHINES WENT PUBLIC IN NOVEMBER 9307150124 930715 MARKETING & MEDIA CBS'S PROFIT ROSE 56 IN 2ND PERIOD ON ONETIME GAINS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS INC SAID SECONDQUARTER NET INCOME ROSE 56 ON ONETIME GAINS AND 8 SALES GROWTH AT THE CBS NETWORK AND PREDICTED THAT FULLYEAR EARNINGS WOULD EXCEED THE RECORD SET IN 1989 BY A SIGNIFICANT MARGIN THE BULLISH OUTLOOK SENT CBS SHARES UP 725 TO CLOSE AT 245 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID THAT AD RATES IN THE CURRENT QUARTER ARE WELL ABOVE THOSE OF A YEAR EARLIER AND THAT THE NETWORK NO 1 IN PRIME TIME IS BENEFITING FROM HIGHER AD RATES FOR PRIMETIME DAYTIME LATENIGHT AND NEWS PROGRAMMING CBS POSTED A 7 RISE IN REVENUE IN THE QUARTER TO 8358 MILLION FROM 7799 MILLION NET INCOME WAS 1074 MILLION OR 673 A SHARE UP FROM 69 MILLION OR 446 A SHARE A YEAR EARLIER THE COMPANY HAD MORE SHARES OUTSTANDING IN THE LATEST PERIOD EARNINGS WERE BOOSTED BY TWO ONETIME PRETAX GAINS 142 MILLION ON THE SALE OF SECURITIES AND 107 MILLION RELATED TO INSURANCE SETTLEMENTS FOR HURRICANE DAMAGE TO CBS'S MIAMI TV STATION BUT CBS'S OPERATING EARNINGS WERE UP HANDSOMELY EVEN WITHOUT THE ONETIME ITEMS AS EXPENSES FELL 2 IN THE QUARTER WITH FIRSTHALF EARNINGS AT 1023 A SHARE CBS CHAIRMAN LAURENCE A TISCH SAID IN A STATEMENT THAT THE COMPANY CAN SURPASS BY A SIGNIFICANT MARGIN ITS FULLYEAR RECORD EARNINGS OF 1154 A SHARE FROM CONTINUING OPERATIONS SET IN 1989 CBS ALSO SAID IT NOW HAS 12 BILLION IN CASH AND MARKETABLE SECURITIES WHILE TOTAL DEBT IS ONLY AT ABOUT 500 MILLION FOR THE SIX MONTHS REVENUE FELL 8 TO 171 BILLION AND NET INCOME ROSE TO 1616 MILLION FROM 5 MILLION IN THE 1992 SECONDQUARTER WHEN RESULTS WERE REDUCED SHARPLY BY ACCOUNTING CHANGES 9307150123 930715 FINANCING BUSINESS THOMSON CORP THOMSON CORP SAID IT PLANS TO ISSUE 250 MILLION CANADIAN DOLLARS US1952 MILLION OF 77 DEBENTURES DUE IN DECEMBER 2003 THE TORONTO NEWSPAPER PUBLISHING INFORMATION SERVICES AND TRAVEL CONCERN SAID PROCEEDS WILL BE USED TO REPAY DEBT 9307150122 930715 TECHNOLOGY & HEALTH GENENTECH PROFIT SURGED IN QUARTER HEART DRUG IS CITED BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH SAN FRANCISCO GENENTECH INC REPORTED THAT SECONDQUARTER PROFIT TREBLED TO 104 MILLION OR NINE CENTS A SHARE FROM 34 MILLION OR THREE CENTS A SHARE THE YEAR EARLIER THE BIOTECHNOLOGY CONCERN CITED SHARPLY INCREASED ORDERS FOR ITS HEART DRUG ACTIVASE OR TPA REVENUE IN THE PERIOD JUMPED 25 TO 1698 MILLION FROM 136 MILLION AMID HIGHER PRODUCT SALES ACTIVASE SALES LED THE PACE RISING 25 TO 558 MILLION FROM 446 MILLION THE YEAR BEFORE GENENTECH ALSO RECEIVED 182 MILLION OF LICENSE FEES FROM SCHERING CORP UNDER A SETTLEMENT OF A PATENTINFRINGEMENT LAWSUIT WALL STREET WASN'T SURPRISED BY THE PROFIT PERFORMANCE WHICH WAS IN LINE WITH MOST EXPECTATIONS GENENTECH SHARES EDGED UP 50 CENTS TO CLOSE AT 4425 A SHARE ON VOLUME OF 86000 SHARES WHICH WAS LOWER THAN AVERAGE DAILY VOLUME SINCE LATE APRIL WHEN THE STOCK WAS ABOUT 32 GENENTECH SHARES HAVE ADDED ABOUT 12 IN REACTION TO RESULTS OF A CLINICAL STUDY OF TPA TPA SALES HAD SAGGED IN RECENT YEARS AND GENENTECH'S SHARE OF THE MARKET FOR CLOTBUSTING DRUGS HAD SLIPPED TO 50 FROM 66 AMID CONCERN OVER TPA'S PRICE OF 2200 A DOSE THAT'S MORE THAN 10 TIMES THE PRICE OF THE RIVAL CLOTDISSOLVER STREPTOKINASE WHICH LONG HAD SEEMED TO MATCH TPA'S LIFESAVING QUALITIES BUT IN APRIL RESEARCHERS IN A 40000PATIENT CLINICAL TRIAL REPORTED THAT HEARTATTACK PATIENTS TAKING ACTIVASE HAD A 1 SURVIVAL ADVANTAGE OVER PATIENTS TAKING STREPTOKINASE HOWEVER SOME ANALYSTS SAY IT'S TOO SOON TO KNOW WHETHER THE SALES REBOUND PRESAGES A RETURN TO THE COMMANDING 66 MARKET SHARE ONCE HELD BY ACTIVASE OR MERELY THE END OF ITS EROSION FOR THE SIX MONTHS GENENTECH'S PROFIT SOARED TO 247 MILLION OR 21 CENTS A SHARE FROM 69 MILLION OR SIX CENTS A SHARE REVENUE ROSE ALMOST 22 TO 3228 MILLION FROM ABOUT 265 MILLION THE COMPANY ALSO SAID THAT IT WILL MEET AUG 9 WITH AN ADVISORY PANEL OF THE FOOD AND DRUG ADMINISTRATION TO PRESS ITS APPLICATION FOR APPROVAL OF THE CYSTIC FIBROSIS DRUG PULMOZYME OR DNASE THE GENETIC AILMENT AFFLICTS 30000 PEOPLE IN THE US AND ANOTHER 23000 PEOPLE IN CANADA AND EUROPE WHERE SEPARATE MARKET APPLICATIONS ARE PENDING GENENTECH ADDED THAT IT HAS ASKED THE FDA TO APPROVE THE MARKETING OF NUTROPIN A NEW VERSION OF HUMANGROWTH HORMONE FOR TREATING SHORT STATURE ASSOCIATED WITH THE KIDNEY DISORDER KNOWN AS CHRONIC RENAL INSUFFICIENCY ABOUT 2000 CHILDREN IN THE US MAY BE ELIGIBLE FOR SUCH TREATMENT 9307150121 930715 CORPORATE FOCUS INTELLIGENT ELECTRONICS WISER NOW RETURNS TO A PROFIT COMPUTER WHOLESALER LEARNED FROM FAILED VENTURE INTO RETAIL STORES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL FLUSH WITH CONFIDENCE AFTER PROVING HIMSELF IN THE WHOLESALE DISTRIBUTION OF COMPUTERS RICHARD SANFORD FOUNDER AND CHAIRMAN OF INTELLIGENT ELECTRONICS INC COULDN'T RESIST GOING INTO THE RETAIL BUSINESS AS WELL THAT WAS IN 1991 WHEN INTELLIGENT PAID 195 MILLION FOR THE 57STORE DALLASBASED BIZMART INC NOW BADLY STUNG HIS COMPANY IS BACK TO MIDDLEMAN BASICS 156 MILLION POORER FOR THE EXPERIENCE WE STUBBED OUR TOES ON BIZMART MR SANFORD SAYS OK NOW WE MOVE ON AFTER THREE STRAIGHT QUARTERS OF LOSSES INTELLIGENT LAST MONTH SAID IT HAD TURNED A PROFIT NETTING 122 MILLION ON 6199 MILLION IN REVENUE FOR THE FISCAL FIRST QUARTER ENDED MAY 1 IT SOLD BIZMART IN MARCH THE EXPERIENCE IS A CAUTIONARY TALE FOR ALL COMPANIES AND AS THE EXTON PABASED INTELLIGENT CONTINUES TO HUNT FOR WAYS TO EARN MORE MONEY AND KEEP UP WITH SHIFTING DISTRIBUTION PATTERNS MR SANFORD SAYS HE WILL REMEMBER THE LESSONS A FORMER ACCOUNTANT AND CONTROLLER MR SANFORD BUILT INTELLIGENT ELECTRONICS INTO ONE OF THE NATION'S BIGGEST WHOLESALERS OF NAMEBRAND PERSONAL COMPUTERS AND PERIPHERALS BY SLASHING COSTS AND MASTERING ECONOMIES OF SCALE HE MADE INTELLIGENT THE INDUSTRY'S LOWEST COST MIDDLEMAN TO A MARKET OF INDEPENDENT STORES AUTHORIZED BY THE COMPUTER MAKERS BUT HE WAS IN OVER HIS HEAD AT BIZMART WHILE ACCUSTOMED TO DEALERS WHO DROVE HARD BARGAINS HE BADLY MISCALCULATED THE TIGHTFISTEDNESS OF RETAIL CUSTOMERS MR SANFORD WENT FROM MANAGING TWO WAREHOUSES AND A HEADQUARTERS TO OPENING 50 BIZMART STORES IN ADDITION TO EXPANDING THOSE HE BOUGHT AND NOTHING HE LEARNED IN THE MUNDANE BUSINESS OF WHOLESALING PREPARED HIM FOR THE TASK OF MAKING SHOPPERS ENTHUSIASTIC TO VISIT HIS STORES THE PLAIN SIMPLE FACT IS THIS WHEN YOU GET INTO SOMEONE ELSE'S BUSINESS YOU GENERALLY DON'T DO IT BETTER THAN THE OTHER GUY SAYS JAMES MEYER DIRECTOR OF RESEARCH AT JANNEY MONTGOMERY SCOTT MR SANFORD HAD SEEN BIZMART'S OFFICESUPPLY PRODUCTS WITH DOUBLEDIGIT MARGINS AS HIS TICKET TO A HIGHER STOCK PRICE HE BELIEVED HE HAD TO ACT FAST BEFORE OTHERS SEWED UP THE POTENTIALLY LUCRATIVE MARKET FOR STORES SELLING COMPUTERS ALREADY COMPUSA WAS RAPIDLY ESTABLISHING ITSELF AS A SUPERSTORE FOR COMPUTERS MR SANFORD SAW A NICHE HE WOULD USE HIS CONNECTIONS WITH THE NAMEBRAND COMPUTER MAKERS TO WIN PERMISSION TO SELL THEIR WARES IN STORES THAT LIKE STAPLES AND OFFICE DEPOT WERE THEN SELLING EVERYTHING FROM PAPER CLIPS TO CLONE PCS COMPUTER MAKERS WERE READY IMPRESSED BY THE SUCCESS OF COMPUSA MANY MANUFACTURERS WANTED TO EXPERIMENT WITH SIMILAR RETAIL OUTLETS PREVIOUSLY MOST NAMEBRAND COMPUTERS WERE SOLD THROUGH AUTHORIZED DEALERS AN EXCLUSIVE CLUB OF TRAINED COMPUTER SPECIALISTS IDENTIFIED AND SERVICED BY MIDDLEMEN LIKE MR SANFORD WHILE MR SANFORD GOT PERMISSION TO SELL SOME BRANDED COMPUTERS IN THE BIZMART STORES THE ACQUISITION WENT AGAINST MANY OF THE RISKAVERSION PRINCIPLES THAT HAD LONG GUIDED THE FORMER ACCOUNTANT IN CREATING INTELLIGENT IN 1982 FOR EXAMPLE HE HAD SOUGHT OUT ESTABLISHED OFFICEEQUIPMENT STORES IN SMALL TOWNS AND MIDSIZED CITIES THE IDEA ACQUIRE INSTANT MARKET SHARE AND AVOID THE RISK OF TRAINING PEOPLE TO OPEN BRANDNEW DEALERSHIPS IN BIG CITIES WHERE HIS RIVALS WERE BUSY SETTING UP COMPUTER DEALERS WITHIN MONTHS OF BUYING BIZMART AS EXISTING STORES WERE EXPANDED AND NEW 30000SQUAREFOOT ONES BUILT RED INK FLOWED THEY MISCALCULATED HOW MUCH HAVING NO RETAIL EXPERIENCE AT THE TOP LEVEL WOULD HURT THEM MR MEYER SAYS IN ITS RUSH TO OPEN STORES THE BIZMART STAFF CHOSE POOR LOCATIONS ANALYSTS SAY ADVERTISING WAS LACKLUSTER AND THE COMPANY MADE TWO SERIOUS MISCALCULATIONS IT UNDERESTIMATED THE NUMBER OF OUTLETS THAT NAMEBRAND COMPUTER MAKERS WOULD USE SO COMPETITION WAS KEENER THAN EXPECTED INTELLIGENT ALSO MISGAUGED THE WILLINGNESS OF CONSUMERS TO BUY BRANDED COMPUTERS WHICH WEREN'T THE SUBJECT OF A PRICE WAR AS BIZMART'S RAPID EXPANSION WAS BEGINNING SAYS MELINDA REACH AN ANALYST WITH MERRILL LYNCH & CO BRANDNAME COMPUTER MAKERS DIDN'T CUT PRICES IN EARNEST UNTIL LATE LAST YEAR BY THEN INTELLIGENT'S STOCK HAD PLUMMETED TO 6 FROM 3750 AND THE COMPANY WAS COMMITTED TO UNDOING ITS MISTAKE THE STOCK ALSO WAS HURT BY A SHAREHOLDER SUIT IN FEDERAL COURT ALLEGING THAT INTELLIGENT PLAYED FAST AND LOOSE WITH ACCOUNTING RULES BETWEEN 1989 AND 1991 PUMPING UP EARNINGS BY UNDERVALUING THE WORTH OF INVENTORY ACQUIRED THROUGH THE PURCHASE OF BIZMART AND THE TWO FRANCHISE CHAINS MR SANFORD MAINTAINS THAT INTELLIGENT WILL COME OUT CLEAN AS A WHISTLE INTELLIGENT SOLD ITS 105 BIZMART STORES IN MARCH FOR 275 MILLION TO OFFICE MAX INC A COMPANY CONTROLLED BY KMART CORP AFTER ADJUSTING FOR OPERATING LOSSES AND CAPITAL EXPENDITURES THE DEAL NETTED OUT AS A 156 MILLION LESSON LEARNED WE DON'T FALL IN LOVE WITH OUR IDEAS MR SANFORD SAYS ON PAPER BIZMART WAS GOING TO WORK WELL DO YOU LET IT TAKE ALL OF MANAGEMENT'S ATTENTION AND FOCUS TO FIX WE GOT RID OF THE PROBLEM INDEED BUOYED BY THE QUARTERLY PROFIT A 2ASHARE SPECIAL DIVIDEND A PLAN TO BUY BACK SEVEN MILLION OF ABOUT 37 MILLION SHARES AND THE ANNOUNCEMENT OF A REGULAR CASH DIVIDEND INTELLIGENT'S STOCK HAS TRADED AS HIGH AS 15375 A SHARE IN RECENT DAYS IT CLOSED YESTERDAY AT 14625 IN NATIONAL OVERTHECOUNTER TRADING FOR THE COMING YEAR INTELLIGENT IS EXPECTED TO BENEFIT FROM STRONG DEMAND FOR NEW PRODUCTS FROM THE NAMEBRAND COMPUTER MAKERS WITH A VIRTUALLY DEBTFREE BALANCE SHEET SHOWING 150 MILLION IN CASH INTELLIGENT ALSO IS EXPECTED TO BENEFIT FROM CONTINUED CONSOLIDATION IN THE MIDDLEMAN BUSINESS ANALYSTS SAY ANALYSTS SAY MR SANFORD INEVITABLY WILL BE TEMPTED TO TRY OTHER HIGHERMARGIN VENTURES AFTER ALL DESPITE BENEFITING FROM SOME OF THE INDUSTRY'S MOST GENEROUS VOLUME DISCOUNTS THE COMPANY OPERATES OFF A MEAGER 42 GROSS MARGIN MR SANFORD INSISTS THAT THE COMPANY WON'T GO AS FAR AFIELD AS WE DID WITH BIZMART FOR NOW THE ACCOUNTANTTURNEDCONTROLLER PROFESSES TO BE CONTENT DOING WHAT HE DOES BEST CUTTING COSTS AND GENERATING CASH FLOW ALREADY THE LEANLY STAFFED COMPANY SPENDS JUST 2 OF REVENUE ON SELLING GENERAL AND ADMINISTRATIVE EXPENSES AN INDUSTRY LOW IN ONE OF THE MOST INGENIOUS MOVES HE EFFECTIVELY RUNS A BANK WITH SUBSTANTIAL FLOAT INTELLIGENT'S 1700 CUSTOMERS ARE REQUIRED TO BUY THROUGH COMMERCIAL FINANCE COMPANIES WHICH PAY INTELLIGENT ALMOST IMMEDIATELY BUT INTELLIGENT STALLS WHEN IT COMES TO ITS OWN BILLS PAYING IN 40SOME DAYS OUR GOAL IS TO WRING ALL THE COSTS WE CAN OUT OF THE SYSTEM MR SANFORD SAYS WE BELIEVE THE WINNER IN THIS INDUSTRY WILL BE THE LOWESTCOST PROVIDER WE THINK BREATHE AND SMELL EFFICIENCY SUPPLIER OF NAMEBRAND COMPUTER HARDWARE AND PERIPHERALS TO INDEPENDENT STORES AUTHORIZED BY THE COMPUTER MANUFACTURERS 9307150120 930715 TECHNOLOGY BRIEF AMERICAN SUPERCONDUCTOR CORP PROTOTYPE SONAR DEVELOPED WITH COLLABORATION OF NAVY AMERICAN SUPERCONDUCTOR CORP SAID IT DEVELOPED A PROTOTYPE SUPERCONDUCTORBASED SONAR IN COLLABORATION WITH THE US NAVY THE WESTBOROUGH MASS COMPANY SAID THE SONAR PROMISES SUPERIOR CAPABILITIES IN IDENTIFYING UNDERWATER OBJECTS IT ALSO REPRESENTS THE FIRST FULLY INTEGRATED DEVICE USING HIGHTEMPERATURE SUPERCONDUCTING COILS THE COMPANY ADDED THE PROTOTYPE SONAR EMPLOYS A COIL OF SUPERCONDUCTING WIRE WHICH CONDUCTS ELECTRICITY WITHOUT RESISTANCE WHEN COOLED TO CREATE A POWERFUL MAGNETIC FIELD THE COMPANY SAID THE MAGNETIC FIELD IN TURN CAUSES A NOVEL MAGNETORESTRICTIVE MATERIAL DEVELOPED BY THE NAVY TO VIBRATE ISSUING A LOUD LOWFREQUENCY TONE THAT IS BOUNCED OFF UNDERWATER OBJECTS IN ORDER TO IDENTIFY THEM 9307150119 930715 REVIEW & OUTLOOK EDITORIAL ASIDES LAWYERS BANKED UP YOU KNOW WE'RE HEADING FOR THE DEEP MUD WHEN A TRADE PUBLICATION CALLED SAVINGS & COMMUNITY BANKER PUTS OUT A COVER STORY TITLED FINDING QUALIFIED LEGAL COUNSEL ESPECIALLY WHEN IT REPORTS THAT A RECENT SURVEY OF LAW FIRMS FOR THE INDUSTRY IDENTIFIED 191 FIRMS THAT ARE EITHER BASED IN WASHINGTON OR HAVE WASHINGTON OFFICES WHO KNOWS HOW MANY TOTAL LAWYERS THAT ADDS UP TO POUNDING AWAY ON THE REGULATORY ROCKPILE BUT IT FURTHER CONVINCES US THAT DAN QUAYLE WAS RIGHT ABOUT REGULATIONS AND ABOUT LAWYERS IN AMERICA THE BORROWERS AND SAVERS BACK IN THE COMMUNITIES ARE OF COURSE PAYING FOR IT 9307150118 930715 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PATRICK INDUSTRIES INC AN OFFERING OF 800000 COMMON SHARES VIA HAMILTON INVESTMENTS INC MALLON RESOURCES CORP AN OFFERING OF 25 MILLION UNITS VIA PAULSON INVESTMENT CO TRANSAMERICA FINANCE CORP A UNIT OF TRANSAMERICA CORP A SHELF OFFERING OF UP TO 2 BILLION OF SENIOR AND SUBORDINATED DEBT SECURITIES AND WARRANTS TO BUY DEBT SECURITIES 9307150117 930715 RIGGS POSTS NET LOSS TOTALING 732 MILLION FOR SECOND QUARTER WASHINGTON RIGGS NATIONAL CORP A BANK HOLDING COMPANY REPORTED A NET LOSS FOR THE SECOND QUARTER OF 732 MILLION MAINLY BECAUSE OF THE RESTRUCTURING OF ITS LONDON UNIT RIGGS AP BANK THE COMPANY'S SECONDQUARTER LOSS WAS 292 A SHARE COMPARED WITH A LOSS OF 2 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER THE COMPANY TOOK 61 MILLION IN PROVISIONS AND WRITEDOWNS FOR RESTRUCTURING OF ITS BRITISH OPERATIONS WITH ALL OF THE LONDON BANK'S NONPERFORMING AND CLASSIFIED LOANS TRANSFERRED TO RIGGS NATIONAL BANK IN WASHINGTON AT THE END OF THE SECOND QUARTER THE COMPANY SAID THE MOVE HELPS THE LONDON OPERATION GET RID OF OF RISKY PORTFOLIOS AND UNPROFITABLE LINES OF BUSINESS RIGGS AP BANK IS LEFT WITH 123 MILLION OF PERFORMING LOANS 7 MILLION IN RESERVES AND 30 MILLION OF EQUITY RIGGS SAID THE LONDON UNIT WILL CONCENTRATE ON COMMERCIAL MORTGAGES AND TRADE FINANCING VERNON PLACK BANK ANALYST FOR JOHNSTON LEMON & CO A WASHINGTON SECURITIES FIRM SAID THAT WHILE TRANSFERRING NONPERFORMING LOANS FROM ONE UNIT TO ANOTHER IS A STRATEGY RIGGS HAS USED BEFORE TO IMPROVE INVESTOR CONFIDENCE THE LATEST RESTRUCTURING MAY NOT BE THE END OF THE COMPANY'S OVERSEAS TROUBLES THEY'RE NOT SURE AND NO ONE ELSE IS SURE WHETHER THEY'VE SEEN THE BOTTOM MR PLACK SAID PAUL HOMAN RECENTLY NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RIGGS'S WASHINGTON UNIT SAID RIGGS NATIONAL PLANS TO RAISE 100 MILLION IN EQUITY THIS YEAR MR HOMAN WAS HIRED TO CLEAN UP RIGGS'S 320 MILLION PORTFOLIO OF NONPERFORMING LOANS MR PLACK SAID THAT SINCE MR HOMAN WAS JUST HIRED HE HAS AN OPPORTUNITY TO GET ALL THE BAD NEWS OUT AND CLEAN THE DECKS ON THE DOMESTIC SIDE RIGGS TOOK A 21 MILLION PROVISION FOR LOAN LOSSES AND A 94 MILLION CHARGE FOR REAL ESTATE WRITEDOWNS AND EXPENSES IN THE SECOND QUARTER BUT MR PLACK SAID HE IS MORE OPTIMISTIC ABOUT THE BANK'S US OPERATIONS DOMESTICALLY THINGS HAVE CLEARED UP PRETTY WELL HE SAID PARTLY BECAUSE OF A MAJOR COSTCUTTING PROGRAM AT JUNE 30 RIGGS NATIONAL CORP HAD 5 BILLION IN ASSETS IN THE FIRST SIX MONTHS RIGGS HAD A NET LOSS OF 1009 MILLION OR 403 A SHARE COMPARED WITH LAST YEAR'S NET LOSS OF 22 MILLION OR NINE CENTS A SHARE RIGGS STOCK ROSE 375 CENTS OR 58 TO CLOSE AT 6875 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9307150115 930715 BUSINESS BRIEF COLTEC INDUSTRIES INC NET IS POSTED FOR 2ND PERIOD VERSUS BIG YEAREARLIER LOSS COLTEC INDUSTRIES INC REPORTED A PROFIT FOR THE SECOND QUARTER VS A YEAREARLIER LOSS THAT INCLUDED A DEBTREDUCTION CHARGE OPERATING PROFIT FELL 43 THE NEW YORKBASED AEROSPACE AND AUTOMOTIVEPARTS MAKER HAD NET INCOME OF 56 MILLION OR EIGHT CENTS A SHARE IN THE QUARTER ENDED JULY 4 COMPARED WITH A LOSS OF 82 MILLION OR 118 A SHARE THE YEARAGO PERIOD INCLUDED A 1053 MILLION CHARGE FOR EXTINGUISHMENT OF DEBT A SIMILAR CHARGE OF 375000 WAS TAKEN IN THE RECENT QUARTER SALES FELL 7 TO 3346 MILLION FROM 360 MILLION OPERATING PROFIT WAS 37 MILLION COMPARED WITH THE YEAR EARLIER'S 655 MILLION THE PLUNGE IN OPERATING EARNINGS WAS ATTRIBUTED TO A 252 MILLION PRETAX CHARGE FOR RESTRUCTURING THE COMPANY'S AEROSPACE BUSINESS 9307150113 930715 DELL COMPUTER EXPECTS A LOSS IN 2ND QUARTER CONTROL PROBLEMS SLUMP IN EUROPE HURT FIRM STOCK PLUMMETS 18 BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP WRACKED BY INTERNAL CONTROL PROBLEMS AND A SLOWDOWN IN EUROPE SAID IT EXPECTS A LOSS FOR ITS SECOND QUARTER ENDING AUG1 ITS FIRST QUARTERLY DEFICIT EVER THE AUSTIN TEXAS PERSONAL COMPUTER MAKER CONTINUING WHAT HAS BECOME A SUMMER OF GLOOMY FINANCIAL NEWS FOR THE COMPANY SAID THE PREDICTED LOSS IS THE RESULT OF A 75 MILLION TO 85 MILLION CHARGE THE CHARGE COVERS CONTINUING PROBLEMS IN THE COMPANY'S NOTEBOOK COMPUTER BUSINESS AND THE COSTS OF FIXING AN INTERNAL FORECASTING SYSTEM THAT HAS CAUSED DELL TO OVERESTIMATE DEMAND THOUGH MOST ANALYSTS PREDICTED DELL'S EARNINGS WOULD FALL FAR BELOW THE 219 MILLION OR 57 CENTS A SHARE REPORTED A YEAR EARLIER FEW WERE PREPARED FOR THE SIZE OF THE LOSS PEGGED AT 165 TO 185 A SHARE THE COMPANY'S STOCK PLUNGED 30 YESTERDAY MORNING ON NEWS OF THE LOSS THEN RECOVERED SOMEWHAT BY DAY'S END IN NATIONAL OVERTHECOUNTER TRADING DELL'S STOCK CLOSED AT 15875 DOWN 3375 OR 18 THE COMPANY SAID THE EXPECTED LOSS COULD FORCE IT INTO TECHNICAL DEFAULT ON SOME TERMS OF ITS 130 MILLION LINE OF REVOLVING CREDIT THOMAS J MEREDITH CHIEF FINANCIAL OFFICER SAID HE IS NEGOTIATING WITH DELL'S LENDERS TO AVOID A DEFAULT AS WELL AS EXPLORING A HOST OF OTHER PRIVATE FINANCING DEALS DELL'S WOES COME AT A TIME OF INCREASING UNCERTAINTY IN THE PC BUSINESS AFTER MORE THAN A YEAR OF RECORD DEMAND AND FIERCE PRICECUTTING MOST ANALYSTS NOW EXPECT PC SALES TO SLOW BY YEAR'S END BECAUSE OF SLACK CORPORATE SPENDING AND A LULL IN PRODUCT CYCLES THE PRESSURE FROM FALLING PRICES ALREADY HAS SENT EVEREX SYSTEMS INC AND COMPUADD COMPUTER CORP INTO FEDERAL BANKRUPTCY COURT AND PROMPTED APPLE COMPUTER INC TO ANNOUNCE PLANS TO LAY OFF 16 OF ITS WORK FORCE AND CUT SALARIES IN A FURTHER SIGN OF CONSOLIDATION AST RESEARCH INC SAID IT HAS COMPLETED THE PURCHASE OF TANDY CORP'S COMPUTER BUSINESS RESULTING IN A 125 MILLION CHARGE AND A PREDICTION BY AST THAT IT WILL POST A LOSS FOR ITS FISCAL FOURTH QUARTER AND YEAR THE PC INDUSTRY IS IN TURMOIL SAID SANJIV G HINGORANI A TECHNOLOGY ANALYST AT NOMURA RESEARCH INSTITUTE AMERICA IN NEW YORK I THINK IT WILL GET WORSE BEFORE IT GETS BETTER WHILE DELL OFFICIALS SAY THE COMPANY'S PROBLEMS HAVE BEEN EXACERBATED BY THE SCRAMBLE FOR MARKET SHARE AMONG TOP PC MANUFACTURERS THEY CONCEDE THAT DELL IN MANY WAYS HAS CREATED ITS OWN TROUBLE THE COMPANY FOR INSTANCE SAYS IT IS CONTINUING TO PAY FOR A SERIOUS STUMBLE IN NOTEBOOK COMPUTERS THAT HAS KEPT DELL OUT OF THE FASTESTGROWING SEGMENT OF THE COMPUTER BUSINESS CHAIRMAN MICHAEL S DELL SAID HIS COMPANY DOESN'T EXPECT TO HAVE A COMPETITIVE NOTEBOOK COMPUTER ON THE MARKET UNTIL THE END OF THE YEAR IN ADDITION MR DELL ACKNOWLEDGED THAT THE COMPANY WAS SHARPLY OFF IN ITS FORECAST OF DEMAND FOR PCS IN EUROPE RESULTING IN INVENTORY WRITEDOWNS BECAUSE OF SLOW SALES AND THE NEED TO RESTRUCTURE THE COMPANY'S EUROPEAN OPERATIONS INDEED MR DELL SAID THE COMPANY HAS SUFFERED FROM WIDESPREAD INTERNAL CONTROL PROBLEMS EVEN AS REVENUE HAS CONTINUED TO SKYROCKET THAT CLEARLY HAS STRAINED THE SYSTEMS THAT WE HAVE HE SAID THOUGH MR DELL SAID HE IS MOVING TO SLOW THE COMPANY DOWN DELL FOR EXAMPLE DOESN'T PLAN TO OPEN ANY MORE OVERSEAS SUBSIDIARIES THIS YEAR HE NEVERTHELESS PREDICTED REVENUE WILL INCREASE SHARPLY FOR THE SECOND QUARTER TO BETWEEN 710 MILLION AND 730 MILLION FROM 4574 MILLION A YEAR EARLIER SALES FOR THE YEAR ENDING IN JANUARY ARE EXPECTED TO REACH 3 BILLION MR DELL SAID IN PART BECAUSE OF A NEW FAMILY OF DESKTOP MACHINES THE COMPANY PLANS TO INTRODUCE THIS FALL SALES LAST YEAR TOTALED ABOUT 2 BILLION WHILE MR DELL PREDICTED A SLOWING IN INDUSTRY PRICECUTTING DURING THIS YEAR'S SECOND HALF HE SAID THE FINANCIAL TUMULT THAT HAS COME TO DOMINATE THE SUMMER'S NEWS LIKELY WILL CONTINUE IT'S GOING TO BE A VERY COMPETITIVE ENVIRONMENT HE SAID I DON'T THINK ANY COMPANY HAS BEEN ABLE TO RIDE THROUGH THIS BUSINESS WITH UNINTERRUPTED SUCCESS 9307150112 930715 NORTHWEST AIR'S CHIEF TESTIFIES HE FELT PRICING PRESSURE FROM AMR CHAIRMAN BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL GALVESTON TEXAS THE CHIEF EXECUTIVE OF NORTHWEST AIRLINES TESTIFIED THAT HE FELT AMR CORP CHAIRMAN ROBERT L CRANDALL IMPROPERLY TRIED TO PRESSURE HIM TO RAISE AIRLINE TICKET PRICES JOHN DASBURG SAID MR CRANDALL CAUTIONED HIM IN SEPTEMBER 1991 TO MAKE SURE I WAS SUPERVISING PRICING AT NORTHWEST TO ME THAT WAS A WAY OF SAYING YOU OUGHT TO GET YOUR PRICES UP' THE NORTHWEST EXECUTIVE TESTIFIED MR DASBURG WAS TESTIFYING AT AN ANTITRUST CASE BROUGHT BY NORTHWEST AND CONTINENTAL AIRLINES AGAINST AMERICAN AIRLINES AN AMR UNIT IN WHICH THE TWO SMALLER CARRIERS ACCUSE AMERICAN OF CUTTING FARES IN THE SPRING OF 1992 WITH AN AIM TOWARD FORCING THEM OUT OF BUSINESS ASIDE FROM ITS ALLEGEDLY IMPROPER CONTENT THE CONVERSATION IS OF INTEREST BECAUSE IT RECALLS A 1982 EXCHANGE BETWEEN MR CRANDALL AND HOWARD PUTTNAM CHIEF EXECUTIVE OF NOWDEFUNCT BRANIFF AIRLINES IN THAT CONVERSATION MR CRANDALL EXHORTED MR PUTTNAM TO RAISE BRANIFF'S FARES 20 AFTER WHICH AMERICAN WOULD RAISE ITS FARES THE SAME AMOUNT THE AMR CHAIRMAN ULTIMATELY SETTLED FEDERAL PRICEFIXING CHARGES RESULTING FROM THAT CONVERSATION WITHOUT ADMITTING OR DENYING GUILT NORTHWEST AND CONTINENTAL WEREN'T PERMITTED TO INTRODUCE THAT CONVERSATION INTO EVIDENCE AT THIS TRIAL BECAUSE FEDERAL JUDGE SAMUEL B KENT DEEMED IT TOO OLD AND NOT GERMANE TO THE ISSUES INVOLVED IN THIS CASE NORTHWEST A UNIT OF WINGS HOLDINGS INC IS TRYING TO SHOW THAT MR CRANDALL AND AMERICAN TRIED TO RAISE FARES BY VARIOUS METHODS EVENTUALLY GREW FRUSTRATED THEN INTRODUCED 40 FARE CUTS IN APRIL 1992 IN AN ATTEMPT TO KILL OR MAIM ITS AIRLINE RIVALS AMERICAN CONTENDS ITS VALUE PRICING INITIATIVE WAS MERELY AN ATTEMPT TO SIMPLIFY AN OVERLY COMPLICATED FARE STRUCTURE AND JUMPSTART BUSINESS TRAVEL THE CASE WHICH BEGAN MONDAY IS EXPECTED TO LAST ABOUT FIVE WEEKS NORTHWEST'S MR DASBURG SAID THE CONVERSATION TOOK PLACE AFTER A DINNER GATHERING OF AIRLINE AND AEROSPACE EXECUTIVES MOST OF THEM MEMBERS OF AN EXCLUSIVE GROUP CALLED CONQUISTADORES DEL CIELO SPANISH FOR CONQUERORS OF THE SKY AFTER THE DINNER MR DASBURG SAID MR CRANDALL AND DONALD V CARTY AN AMR EXECUTIVE VICE PRESIDENT TOOK HIM ASIDE FOR A PRIVATE CONVERSATION THEY CAME TO ME AND USHERED ME TO A CORNER TABLE MR DASBURG SAID THEY LECTURED ME WITH REGARD TO PRICING AT NORTHWEST AIRLINES FIRST THOUGH MR DASBURG SAID MR CRANDALL WARNED HIM THAT THERE ARE TWO OF US AND ONE OF YOU AND WE'LL DENY WE EVER HELD THIS MEETING AFTER THAT MR CRANDALL STATED THAT WE WERE A DISCOUNT CARRIER AND I PERSONALLY OUGHT TO MAKE SURE I WAS SUPERVISING PRICING MR DASBURG SAID WHICH HE SAID HE TOOK TO MEAN THAT NORTHWEST SHOULD RAISE ITS RATES SUCH A SUGGESTION IF TRUE COULD BE A VIOLATION OF FEDERAL ANTITRUST LAW MR DASBURG SAID HE WAS CONCERNED ENOUGH ABOUT THE CONVERSATION THAT HE REPORTED IT TO NORTHWEST'S GENERAL COUNSEL WITHIN DAYS HE SAID HE DIDN'T CHANGE THE WAY HE SUPERVISED NORTHWEST'S PRICING PRACTICES MR DASBURG SAID HE WAS LECTURED BY MR CRANDALL ON ANOTHER OCCASION WHEN THE AMR CHAIRMAN EXPRESSED ANGER THAT NORTHWEST WAS HIRING AWAY A LOT OF AMERICAN EMPLOYEES ESPECIALLY THOSE INVOLVED IN PRICING HE SAID HE COULDN'T REMEMBER WHEN THAT OTHER CONVERSATION TOOK PLACE A SPOKESMAN FOR AMERICAN AIRLINES SAID THERE WAS NEVER AN EXCHANGE BETWEEN MESSRS CRANDALL AND DASBURG ABOUT PRICING THE JURY WILL HAVE A CHANCE TO HEAR MR CRANDALL TESTIFY ABOUT THE CONVERSATION WHICH HAD NOTHING TO DO WITH PRICING AND EVERYTHING TO DO WITH EMPLOYEE RAIDING AND NORTHWEST'S ATTEMPT AT THEFT OF AMERICAN'S TRADE SECRETS HE SAID AMERICAN SUED NORTHWEST IN MINNESOTA TWO YEARS AGO CLAIMING THAT NORTHWEST TRIED TO STEAL EMPLOYEES THE SUIT IS PENDING NORTHWEST IS ATTEMPTING TO USE AGAINST MR CRANDALL HIS REPUTATION AND PROCLIVITY FOR SPEAKING STRONGLY AND PLAINLY ON CROSSEXAMINATION AMERICAN'S ATTORNEY DAVID BECK ASKED MR DASBURG ABOUT A SERIES OF NORTHWEST MEMORANDUMS PRESENTATIONS AND LETTERS HE HAD RECEIVED OR SENT OUT IN WHICH HE OR OTHER NORTHWEST EXECUTIVES APPARENTLY ENDORSED AMERICAN'S PRICING PLAN IN MOST CASES MR DASBURG SAID HE COULDN'T RECALL SAYING SO OR THAT SUCH A COMMENT WAS TAKEN OUT OF CONTEXT LATER MR BECK SAID IN AN INTERVIEW THERE'S A DIFFERENCE BETWEEN THE STORY THEY'RE TRYING TO TELL AND THE ACTUAL HARD EVIDENCE FROM THEIR OWN DOCUMENTS EARLIER IN THE DAY NORTHWEST'S COCHAIRMAN GARY WILSON TESTIFIED THAT HIS REACTION TO HEARING THAT AMERICAN HAD CUT FARES IN 1992 WAS TOTAL SHOCK THE PRICING STRUCTURE AMERICAN PROPOSED WAS TOTALLY ILLOGICAL YOU'RE NOT GOING TO GET MORE BUSINESS TRAVELERS IF YOU REDUCE THE PRICE MR WILSON TESTIFIED THAT THE FARE CUTS AND A SUBSEQUENT HALFOFF FARE CUT LAST MAY HELPED PUSH NORTHWEST TO A PRETAX LOSS LAST YEAR OF MORE THAN 700 MILLION FAR HIGHER THAN THE 200 MILLION OR SO LOSS ORIGINALLY FORECAST BY NORTHWEST IN 1992 THAT LOSS HE SAID NEARLY PUSHED NORTHWEST INTO FILING FOR CHAPTER 11 PROTECTION FROM CREDITORS LAST DECEMBER UNTIL A LASTMINUTE BANK LOAN PREVENTED THAT ACTION IT DID LEAD TO SALARY CUTS FOR EMPLOYEES AND SERVICE CUTBACKS AND EVENTUALLY THIS LAWSUIT AGAINST AMERICAN IT'S TIME THE BULLY IN THE SCHOOLYARD GOT PUNCHED MR WILSON SAID 9307150111 930715 BUSINESS BRIEF BEARD OIL CO DEBENTURE HOLDERS CONCERN AGREE ON RESTRUCTURING PLAN BEARD OIL CO OKLAHOMA CITY SAID IT AGREED WITH ITS DEBENTURE HOLDERS TO TRANSFER SUBSTANTIALLY ALL OF ITS OIL AND GAS ASSETS TO THEM IN ADDITION THESE CREDITORS WHO OWN 85 MILLION OF DEBENTURES DUE JUNE 30 1994 WILL RECEIVE 25 OF BEARD OIL'S COMMON STOCK AND 91 MILLION OF BEARD OIL ZEROCOUPON CONVERTIBLE PREFERRED STOCK IN EXCHANGE FOR THE DEBT IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE BEARD OIL CLOSED AT 6875 CENTS UNCHANGED AFTER THE DEBT RESTRUCTURING BEARD OIL WILL BECOME A UNIT OF A PUBLIC COMPANY BEARD INVESTMENT CO BEARD OIL COMMON STOCK WILL THEN BE CONVERTED TO A RIGHT TO RECEIVE ONETHIRD OF A COMMON SHARE OF BEARD INVESTMENT AND THE PREFERRED SHARES WILL BE EXCHANGED FOR ONE SHARE OF BEARD INVESTMENT PREFERRED THE RESTRUCTURING MUST BE APPROVED BY A MAJORITY OF BEARD OIL COMMONSTOCK HOLDERS IF THE SHAREHOLDERS APPROVE THE PLAN AT A SPECIAL MEETING TO BE HELD IN LATE SEPTEMBER OR OCTOBER BEARD INVESTMENT WILL THEN BE POSITIONED TO CONCENTRATE ON THE COMPANY'S REMAINING ACTIVITIES WHICH INCLUDE OPERATIONS IN CARBON DIOXIDE REAL ESTATE AND ALTERNATIVE FUELS 9307150110 930715 HEARD ON THE STREET EXERCISE DECLINE TAKES PEP OUT OF SOME STOCKS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL MAKERS OF FITNESS PRODUCTS SUCH AS NIKE CML GROUP AND FIRST TEAM SPORTS HAVE BLAMED THE ECONOMY OR THE WEATHER FOR RECENT SLOWDOWNS IN SALES GROWTH OR TEMPORARY FACTORY CLOSINGS BUT SOME KNOWLEDGEABLE WALL STREETERS BELIEVE THERE'S ANOTHER EXPLANATION WE'RE ALL A BUNCH OF LAZY SLOBS SAYS KIDDER PEABODY ANALYST GARY JACOBSON WHO FOLLOWS NIKE REEBOK INTERNATIONAL AND OTHER SNEAKER COMPANIES THE MARKET FOR FITNESS PRODUCTS IS FLATTENING THE FITNESS BOOM HAS PEAKED SAYS INVESTOR JAMES B ROGERS JR WHO COHOSTS A TV SHOW CALLED YOUR PORTFOLIO MR ROGERS IS SHORTSELLING SNEAKER STOCKS AND CML BETTING THEY WILL DECLINE FURTHER ALTHOUGH MESSRS JACOBSON AND ROGERS INSIST THEY STILL FOLLOW NIKE'S ADVICE TO JUST DO IT THERE'S EVIDENCE TO SUGGEST THAT MANY AMERICANS DON'T ACCORDING TO A NATIONWIDE SURVEY CONDUCTED IN JANUARY BY AMERICAN SPORTS DATA A HARTSDALE NY RESEARCH FIRM THE ONE AMERICAN IN FIVE WHO EXERCISES REGULARLY IS STILL OUTNUMBERED BY THREE COUCH POTATOES MOREOVER THE COMPANY SAYS AFTER PEAKING IN 1990 THE NUMBER OF FREQUENT FITNESS PARTICIPANTS IN THE US DECLINED BY 48 IN 1991 AND AGAIN BY 27 IN 1992 AMONG OTHER THINGS THE SURVEY FOUND THAT ENTHUSIASM FOR SKITYPE MACHINES ISN'T SPREADING AS RAPIDLY SOME 83 MILLION PEOPLE USED A CROSSCOUNTRY SKI MACHINE AT LEAST ONCE IN 1992 AN INCREASE OF 11 FROM 1991 AMERICAN DATA SAID THAT COMPARES WITH A 45 GAIN IN 1991 INDEED CML'S NORDICTRACK UNIT THE LEADING MAKER OF SKI MACHINES RECENTLY TOLD EMPLOYEES THEY WOULD BE TAKING AN UNEXPECTED VACATION NEXT WEEK WITHOUT PAY JAMES BOSTIC PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORDICTRACK TOLD NORDICTRACKERS IN A JULY 1 LETTER THAT WIDESPREAD CONSUMER CONCERNS ABOUT OUR NATION'S LACK OF LEADERSHIP THE ABSENCE OF ANY SORT OF PLAN TO BUILD OUR COUNTRY'S ECONOMY AS WELL AS WORRY ABOUT PERSONAL FINANCIAL OUTLOOKS AND EVEN JOB SECURITY HAVE KEPT MANY MANY PROSPECTIVE FITNESS EQUIPMENT BUYERS FROM RESPONDING TO OUR ADS AND TV COMMERCIALS AS THEY NORMALLY WOULD COPIES OF THE LETTER CIRCULATED ON WALL STREET AND SENT CML'S STOCK SCHUSSING DOWNHILL ON JUNE 30 CML TRADED AT 41 1/4 BY YESTERDAY THE STOCK HAD SLID TO 32 3/4 DOWN 1 1/4 ON THE DAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CHARLES LEIGHTON CHAIRMAN AND CEO OF CML BASED IN ACTON MASS DENIES THAT EXERCISING IS ON THE WANE HE SAYS NORDICTRACK'S SALES ARE UP 39 FOR THE 11 MONTHS ENDED JUNE 30 COMPARED WITH A YEAR EARLIER AND THAT ORDERS FOR THE FIRST WEEK OF JULY ROSE FROM THE YEAREARLIER PACE MR LEIGHTON BLAMES CML'S STOCK DROP ON SHORTSELLERS WHO ARE BETTING AGAINST THE COMPANY AND ON MR BOSTIC'S PENCHANT FOR HYPERBOLE HE WRITES 40 MEMOS A YEAR TELLING EVERYONE THEY CAN DO BETTER MR LEIGHTON SAYS OF MR BOSTIC HE'S NEVER SATISFIED DOWNBEAT EARNINGS FORECASTS SENT THE STOCKS OF NIKE AND REEBOK THE TWO LEADING SNEAKER MAKERS TUMBLING RECENTLY PHILIP KNIGHT NIKE'S CHAIRMAN AND CEO SAID LAST WEEK HE DOESN'T EXPECT NIKE TO ACHIEVE THE 15 ANNUAL GROWTH IN REVENUE AND PROFIT THAT HAD PREVIOUSLY BEEN ITS GOAL INSTEAD HE SAID NIKE WOULD ACHIEVE SINGLEDIGIT GROWTH FOR ITS FISCAL YEAR ENDING MAY 31 1994 NIKE BLAMED ECONOMIC WEAKNESS IN EUROPE AND US RETAILERS' CAUTION FOR THE SLOWER GROWTH RATE REEBOK CITING SLUGGISH SALES IN ITS US FOOTWEAR BUSINESS AND A NEW PRICING POLICY SAID LAST MONTH THAT ITS EARNINGS FOR THE REST OF 1993 MAY BE BELOW ANALYSTS' EXPECTATIONS YESTERDAY NIKE CLOSED AT 57 UP 1 1/2 ON THE DAY BUT WELL BELOW THE YEAR'S HIGH OF AROUND 90 REEBOK ENDED AT 27 3/8 OFF 1/4 AND WAY DOWN FROM THE YEAR'S PEAK OF 38 5/8 BOTH NIKE AND REEBOK STRONGLY DENY THAT SLOTHFULNESS HAS ANYTHING TO DO WITH THEIR EXPECTATIONS OF SLOWER GROWTH THERE ARE MORE PEOPLE INVOLVED IN SPORTS AND FITNESS NOW THAN EVER BEFORE AND THE NUMBER CONTINUES TO GROW SAYS DUSTY KIDD A SPOKESMAN FOR NIKE MR KIDD SAYS HOWEVER THAT NIKE DOESN'T HAVE NUMBERS THAT TRACK THIS BOOM AND SUGGESTS THAT PEOPLE AREN'T REPLACING SHOES AS QUICKLY AS THEY USED TO ANGEL MARTINEZ PRESIDENT OF REEBOK'S FITNESS DIVISION SAYS THAT PEOPLE AREN'T AVOIDING FITNESS INSTEAD THEY'RE SIMPLY CONFUSED ABOUT THE BEST WAY TO GET IN SHAPE HE SAYS THAT IN THE PAST AMERICANS WERE APT TO TAKE A SMORGASBORD APPROACH TO FITNESS NOW THEY'RE DOING STEP REEBOK RELIGIOUSLY AND NOT DABBLING IN RAQUETBALL OR SPENDING TIME ON THE WEIGHT MACHINES ACCORDING TO THE AMERICAN SPORTS DATA SURVEY STEPAEROBICS OF WHICH REEBOK IS THE MARKET LEADER WAS THE ONLY EQUIPMENTRELATED FITNESS ACTIVITY TO SHOW THE VITALITY OF YEARS PAST WITH A 25 INCREASE IN PEOPLE HOPPING UP AND DOWN THE SURVEY CALLED INLINE ROLLER SKATING THE BRIGHTEST STAR ON THE HORIZON HAVING SKYROCKETED 51 IN 1992 YET FIRST TEAM SPORTS THE ONLY PUBLICLY HELD MAKER OF THESE SKATES WHICH FEATURE WHEELS MOUNTED IN A STRAIGHT LINE POSTED LOWER FIRSTQUARTER EARNINGS LAST MONTH THE MOUNDS VIEW MINN COMPANY BLAMED THE DECLINE ON PRODUCTION DELAYS AND COLDERTHANUSUAL SPRING WEATHER HOWEVER FIRST TEAM SAID IT'S CONFIDENT IT CAN FINISH THE FISCAL YEAR THROUGH FEBRUARY 1994 WITH RECORD SALES AND EARNINGS MEANWHILE LEE HILLMAN THE CHIEF FINANCIAL OFFICER OF CHICAGOBASED BALLY MANUFACTURING WHICH OPERATES TENNIS AND HEALTH CLUBS THROUGHOUT THE COUNTRY SAYS MEMBERSHIP SALES FOR THE COMPANY ARE RELATIVELY FLAT MR HILLMAN EXPLAINS THAT THE COUNTRY'S ENTHUSIASM FOR EXERCISE EBBS BUT IT ALWAYS SEEMS TO COME BACK RIGHT NOW HE SAYS IT'S EBBING SO IF WE'RE ALL A BUNCH OF SLUGS WHO'D RATHER SIT THAN SWEAT HOW ARE WE SPENDING OUR LEISURE TIME STEAKHOUSE STOCKS HAVE BEEN HOT AND DEBORAH WHEELER THE MANAGER OF FIDELITY INVESTMENTS' LEISURE AND ENTERTAINMENT FUND NOTES THAT COFFEE CONSUMPTION IS ON THE RISE THE BIG MONEY DUMPS PUBLICLY TRADED CLOSEDEND FUNDS IMMEDIATELY AFTER INITIAL PUBLIC OFFERINGS OFTEN AVOIDING THE PAIN OF A SHARP PRICE DECLINE AN ACADEMIC STUDY FOUND BUT HEEDLESS SMALL INVESTORS OFTEN BUY SUCH FUNDS AT AROUND THE SAME TIME INVESTORS FREQUENTLY ARE ADVISED TO STEER CLEAR OF BUYING CLOSEDEND FUND IPOS BECAUSE THE SHARES TEND TO PLUNGE IN VALUE A FEW WEEKS AFTER GOING PUBLIC BUT THE PRICE OF THESE OFFERINGS WHICH ENTITLE INVESTORS TO A SHARE OF A MANAGED PORTFOLIO OF SECURITIES REMAIN STABLE LONG ENOUGH TO ALLOW INSTITUTIONS TO BAIL OUT WITHOUT LOSING MONEY THE PRICE OF THE TYPICAL CLOSEDEND IPO REMAINS ARTIFICIALLY HIGH AND TEMPORARILY SUPPORTED FOR FOUR WEEKS OR MORE SAYS CHARLES MC LEE ONE OF THREE AUTHORS OF THE STUDY AND AN ASSISTANT PROFESSOR AT THE SCHOOL OF BUSINESS ADMINISTRATION AT THE UNIVERSITY OF MICHIGAN IN ANN ARBOR UNDERWRITERS TEMPORARILY PROP UP THE PRICE HE SAYS WHILE THAT PRACTICE IS LEGAL AND FREQUENTLY DONE FOR A WEEK ON INDUSTRIALCOMPANY IPOS KEEPING THE PRICE UP FOR FOUR WEEKS IS PROBABLY COMING CLOSE TO PUSHING THE INTENTION OF THE LAW MR LEE SAYS BUT WHAT DO THE BIG INSTITUTIONS GAIN BY BUYING FUND IPOS AND THEN FLIPPING THEM SHORTLY AFTERWARD WITHOUT MAKING A PROFIT BUYING INTO THE IPO MIGHT GAIN THEM FAVORS FROM THE UNDERWRITER MR LEE SAYS SUCH AS FAVORABLE ALLOCATIONS IN HOT ISSUES WHICH OFTEN RISE SWIFTLY IN PRICE AFTER GOING PUBLIC NO SUCH BENEFITS GO TO SMALL INVESTORS WHO BUY ONLY TO SEE THEIR SHARES FALL SHORTLY AFTERWARD BY 8 OR SO REFLECTING SALES COMMISSIONS PAID TO THE BROKERS WHO SELL THE IPO THE STUDY CONCLUDES THAT CLOSEDEND FUND IPOS ARE MARKETED TO A POORLY INFORMED PUBLIC 9307150109 930715 STRONG EARNINGS ARE CONTINUING AT BIG BANKS PNC SAYS NET ROSE 33 AS FIRST CHICAGO PROFIT SHOWS THREEFOLD GAIN BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL STRONG EARNINGS FOR THE NATION'S LARGEST BANKS CONTINUED UNABATED AS FOUR BIG REGIONAL BANKS POSTED DOUBLEDIGIT SECONDQUARTER RESULTS PITTSBURGH'S PNC BANK CORP SAID EARNINGS ROSE 33 AND FIRST CHICAGO CORP SURPRISED WALL STREET WITH A THREEFOLD GAIN IN EARNINGS WACHOVIA CORP'S NET ROSE 13 WHILE SHAWMUT NATIONAL CORP'S NET WAS UP FIVEFOLD EARNINGS AT FIRST CHICAGO AND SHAWMUT WERE BETTER THAN EXPECTED AND PNC AND WACHOVIA WERE GENERALLY ON THE HIGH END OF ANALYSTS' EXPECTATIONS LOWER CHARGEOFFS FOR BAD DEBTS FAT PROFIT MARGINS AND STRONG CONSUMER BANKING RESULTS ALL CONTRIBUTED TO THE HEALTHY QUARTER YOU'RE SEEING STRONGERTHANEXPECTED IMPROVEMENT IN CREDIT QUALITY SAID BRENT ERENSEL BANKING ANALYST AT UBS SECURITIES BUT MR ERENSEL REMAINS CONCERNED ABOUT PRESSURE ON MARGINS EARNED BETWEEN BORROWING COSTS AND RATES EARNED ON LOANS AND INVESTMENTS ONE REASON PNC'S STOCK FELL YESTERDAY WAS THAT THIS SOCALLED NET INTEREST MARGIN NARROWED IN THE QUARTER MUCH LIKE THE REACTION TO FIRSTQUARTER EARNINGS BANK STOCKS HAVE BEEN SLIPPING THIS WEEK AFTER RISING FOR THE PAST MONTH IN ANTICIPATION OF STRONG EARNINGS PNC SHARES CHANGED HANDS AT 30375 DOWN 150 FIRST CHICAGO'S STOCK INITIALLY JUMPED BY MORE THAN 1 BUT CLOSED AT 4250 UP 25 CENTS WACHOVIA'S STOCK TRADED AT 34125 DOWN 875 CENTS AND SHAWMUT'S SHARES EASED TO 2325 DOWN 50 CENTS OTHER BIG BANKS FELL AS WELL PNC WITH ASSETS OF 538 BILLION SAID IT ACHIEVED ITS 25 PROFIT MARGIN GOAL IN THE SECOND QUARTER RECORD NETINTEREST INCOME OF 4556 MILLION WAS SLIGHTLY HIGHER THAN THE FIRST QUARTER AND SUBSTANTIALLY GREATER THAN 1992 SECONDQUARTER NET INTEREST INCOME OF 3951 MILLION BUT WALL STREET IS CONCERNED BECAUSE THE COMPANY'S NET INTEREST MARGIN NARROWED 018 OF A PERCENTAGE POINT IN THE QUARTER TO 396 PERCENTAGE POINTS MR ERENSEL SAID ASSET QUALITY IMPROVED IN THE SECOND QUARTER WITH NONPERFORMING ASSETS DECLINING TO 675 MILLION FROM 740 MILLION IN THE FIRST QUARTER THE RATIO OF NONPERFORMING ASSETS TO TOTAL ASSETS WAS 125 AT THE END OF THE QUARTER COMPARED WITH 160 AT THE END OF 1992 AND 201 IN THE YEARAGO PERIOD NONPERFORMING LOANS TOTALED 459 MILLION IN THE SECOND QUARTER COMPARED WITH 554 MILLION AT THE END OF 1992 AND 632 MILLION A YEAR AGO THE SECOND QUARTER DEMONSTRATES THE EARNINGS POWER OF PNC BANK SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER THOMAS H O'BRIEN FIRST CHICAGO THE 50 BILLIONASSET CHICAGO BANK SAID EARNINGS WERE FUELED BY STRONG CREDIT CARD PROFITS EQUITY SECURITIES GAINS AND LOWER CREDIT COSTS THOUGH NOT A BIG PLAYER IN CURRENCY AND SECURITIES TRADING THE FIRM REPORTED TRADING PROFITS OF 92 MILLION AFTER TAKING EXTRAORDINARY CHARGES LAST YEAR FOR BAD DEBTS THE PROVISION FOR LOAN LOSSES FELL TO 70 MILLION WHILE HIGHER THAN THE 65 MILLION TAKEN FOR THE FIRST QUARTER IT WAS LESS THAN EXPECTED AND REFLECTS THE BANK'S REDUCED NEED FOR RESERVES ITS NET MARGIN HOWEVER NARROWED 003 OF A PERCENTAGE POINT THEY HAD A GREAT QUARTER SAID MR ERENSEL WHO YESTERDAY BOOSTED ITS 1993 FORECAST TO 490 A SHARE FROM 435 A SHARE WACHOVIA CORP'S STRONG EARNINGS GAINS RESULTED FROM GROWING INTEREST INCOME AND CONTINUED LIMITS ON EXPENSES IN THE SECOND QUARTER THE COMPANY SAW A 72 INCREASE IN LOANS TO 14 BILLION AND 44 GROWTH IN AVERAGE INTERESTEARNING ASSETS TO 12 BILLION FROM A YEAR EARLIER MUCH OF THE COMPANY'S GAINS IN INTEREST INCOME CAN BE ATTRIBUTED TO THE POPULARITY OF ITS 89 CREDIT CARD SAID JOHN G MEDLIN JR CHIEF EXECUTIVE AND CHAIRMAN WACHOVIA ALSO IS SEEING AN UPTICK IN NEWCAR LOANS AND HOMEMORTGAGE LOANS HE SAID THE COMPANY IS CONTINUING TO LIMIT STAFFING AND EXPANSION OF BRANCHES VERY GOOD EXPENSE CONTROL IS THE HALLMARK OF THIS COMPANY SAID THOMAS K BROWN ANALYST WITH DONALDSON LUFKIN & JENRETTE IT HAS A VERY CONTROLLED EXPANSION EFFORT THE COMPANY ALSO IMPROVED ON ITS ALREADY STRONG CREDIT QUALITY BY SELLING NEARLY HALF ITS FORECLOSED PROPERTY AS OF JUNE 30 WACHOVIA HAD 227 MILLION IN NONPERFORMING ASSETS COMPARED WITH 275 MILLION IN THE FIRST QUARTER FOR THE SECOND QUARTER THE LOANLOSS PROVISION WAS 261 MILLION DOWN FROM 28 MILLION A YEAR EARLIER NET LOAN LOSSES FELL TO 172 MILLION FROM 209 MILLION A YEAR AGO AS OF JUNE 30 WACHOVIA HAD TOTAL ASSETS OF 3325 BILLION SHAWMUT NATIONAL CORP'S RESULTS STEMMED FROM A GAIN IN INTEREST INCOME AND SHARPLY LOWER PROVISIONS FOR LOAN LOSSES JOEL ALVORD CHAIRMAN AND CHIEF EXECUTIVE SAID IN A NEWS RELEASE THAT THE BANK IS PUTTING ITS ASSETQUALITY PROBLEMS BEHIND IT AND SEEING GROWTH IN CORE EARNINGS PROVISIONS FOR LOAN LOSSES FELL TO 7 MILLION IN THE SECOND QUARTER FROM 122 MILLION IN THE FIRST PERIOD AND 487 MILLION IN THE 1992 SECOND QUARTER NET INTEREST INCOME ROSE 16 TO 2364 MILLION FROM 2032 MILLION A YEAR AGO AS INTERESTBEARING ASSETS ROSE AND DEPOSIT INTEREST FELL FASTER THAN YIELDS RECEIVED THE NET INTEREST MARGIN WIDENED TO 410 FROM 401 A YEAR EARLIER NONINTEREST INCOME FELL TO 909 MILLION FROM 1091 MILLION REFLECTING A DECLINE IN SALES OF RESIDENTIAL MORTGAGES PROBLEM ASSETS DECLINED TO 5131 MILLION FROM 7771 MILLION IN THE FIRST QUARTER AND 133 BILLION A YEAR AGO TWO SALES OF REAL ESTATE ASSETS DURING THE QUARTER LOPPED 181 MILLION OFF PROBLEM ASSETS BOOSTING SHAWMUT'S RESULTS WAS A 48 MILLION TAX CREDIT THAT ADDED 5 CENTS PER SHARE TO THE BANK'S SECONDQUARTER EARNINGS 9307150108 930715 FOREIGN EXCHANGE DOLLAR PUSHED AROUND AMID PLAYS AMONG OTHER CURRENCIES ENDS LOWER BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR PUSHED AROUND BY TRADING AMONG OTHER CURRENCIES FELL THROUGH SEVERAL TECHNICAL SUPPORT LEVELS TO END LOWER LATE IN NEW YORK THE US CURRENCY WAS QUOTED AT 17150 MARKS DOWN FROM 17185 MARKS LATE TUESDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 10707 YEN DOWN FROM 10802 YEN STERLING WAS TRADING AT 15035 UP FROM 14980 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10745 YEN AND AT 17177 MARKS THE US CURRENCY SEEMED TO HAVE LITTLE APPEAL AS MARKET PARTICIPANTS FOCUSED ON THE RUNUP TO JAPANESE ELECTIONS SUNDAY ON CONTINUING TENSION WITHIN THE EUROPEAN MONETARY SYSTEM'S EXCHANGERATE MECHANISM ERM AND ON MORE STRONG BRITISH ECONOMIC DATA INSTEAD THE DOLLAR WAS PUSHED AND PULLED THROUGH A SERIES OF PLAYS IN OTHER CURRENCIES AT POINTS DURING THE DAY IT WAS FAVORED ON THE YEN'S WEAKNESS AGAINST THE AUSTRALIAN DOLLAR SOLD ON MARK STRENGTH AGAINST WEAKER ERM CURRENCIES BOUGHT UP AS A SLIM GERMAN CUT IN A KEY MONEY MARKET RATE BRIEFLY BOOSTED THE FRENCH FRANC AND FINALLY DRAGGED DOWN AS INVESTORS MOVED OUT OF THE MARK AND INTO THE SWISS FRANC AND YEN BY THE CLOSE OF NORTH AMERICAN TRADING THE DOLLAR HAD LEFT BEHIND SUPPORT LEVELS AT 17180 MARKS AND 10780 YEN AND WAS CLINGING TO SUPPORT AT 17150 MARKS AND 10710 YEN THE DOLLAR IS GETTING ROCKED BACK AND FORTH AS PEOPLE POSITION THEMSELVES IN THE CROSSES CROSS CURRENCIES SAID MARK SCHWARTZ A VICE PRESIDENT AND FOREIGN EXCHANGE DEALER AT LEHMAN BROTHERS IN NEW YORK ONE REASON FOR THE DOLLAR'S NEGLECT TRADERS SAID WAS THE LACK OF EXCITEMENT ABOUT US RETAIL SALES AND CONSUMER PRICE REPORTS JUNE RETAIL SALES ROSE 04 IN LINE WITH ECONOMISTS' EXPECTATIONS OF A 05 RISE THE JUNE CONSUMER PRICE INDEX WAS UNCHANGED FROM MAY COMPARED WITH ECONOMISTS' EXPECTATIONS OF A 01 RISE WHAT'S THE SURPRISE MR SCHWARTZ SAID INFLATION SEEMS TO BE A NONEVENT IN THE US AND RETAIL SALES POINT TO SLUGGISH GROWTH HE SAID THE SURPRISE WOULD BE HIGHER INFLATION OR SOME KIND OF REAL PICKUP IN GROWTH AND THAT MIGHT MOVE THE DOLLAR HE SAID THE DOLLAR MOVED HIGHER IN ASIA ASSISTED IN PART BY INVESTMENT FUND SALES OF YEN AGAINST THE AUSTRALIAN DOLLAR THE YEN'S WEAKNESS AGAINST THE AUSTRALIAN DOLLAR SOON SPILLED OVER INTO WEAKNESS AGAINST THE US DOLLAR TRADERS SAID THEN IN EARLY EUROPEAN TRADING THE US CURRENCY TESTED RESISTANCE AT 10880 YEN AND 17300 MARKS AFTER THE DEUTSCHE BUNDESBANK SET ITS MINIMUM ACCEPTANCE RATE FOR REPURCHASE AGREEMENTS AT 728 DOWN FROM THE 730 SET A WEEK EARLIER THE REPO RATE IS THE GERMAN CENTRAL BANK'S CHIEF TOOL FOR FINETUNING DOMESTIC MONEYMARKET RATES TRADERS SAID THE GERMAN MOVE APPEARED DESIGNED TO SHOW SUPPORT FOR THE FRENCH FRANC WHICH HAS BEEN SOLD HEAVILY AGAINST THE MARK IN THE PAST WEEK BY MARKET PARTICIPANTS BETTING FRANCE WOULD CUT RATES TO FUEL ITS SPUTTERING ECONOMY THE FRANC WAS ALSO THE BENEFICIARY OF BUNDESBANK CURRENCY MARKET INTERVENTION THROUGHOUT THE DAY TRADERS SAID THEY EXPECTED THE INTERVENTION TO CONTINUE PARTICULARLY IF THE FRENCH CURRENCY APPROACHES 34200 MARKS THE MARK'S CEILING AGAINST THE FRENCH CURRENCY IN THE ERM GRID AT WHICH POINT THE FRENCH AND GERMAN CENTRAL BANKS ARE OBLIGED TO INTERVENE IS 34305 FRANCS THE DANISH AND DUTCH CENTRAL BANKS ALSO INTERVENED IN MARKETS IN AN ATTEMPT TO LIFT THE DANISH KRONE OFF ITS FLOOR VALUE WITHIN THE ERM TRADERS SAID THE ERM TENSIONS COULD BE EXPECTED TO SPREAD NOT ONLY TO THE KRONE BUT TO THE SPANISH PESETA AND POSSIBLY THE BELGIAN FRANC WITH A COMPLETE REVALUATION OF THE ERM CURRENCIES NOW A POSSIBILITY SINCE ANY ERM REVALUATION PROBABLY WOULD INCREASE THE VALUE OF THE MARK INVESTORS MOVED AWAY FROM THE DOLLAR AND INTO THE MARK IN LATE TRADING TRADERS SAID THE YEN TOO BENEFITED FROM THE EXODUS TRADERS SAID MANY IN THE MARKET BELIEVE JAPAN'S RULING LIBERAL DEMOCRATIC PARTY WILL WIN ENOUGH OF A MAJORITY IN SUNDAY'S ELECTION TO REMAIN IN POWER REESTABLISHING A SENSE OF POLITICAL STABILITY AND ENSURING PASSAGE OF A PROPOSED FISCAL STIMULUS PROGRAM STERLING CONTINUED ITS GAINS BASED ON TUESDAY'S BULLISH REPORT ON UK INDUSTRIAL OUTPUT AND NEW FIGURES SHOWING BRITISH INFLATION ROSE ONLY 12 IN JUNE FROM A YEAR EARLIER 9307150107 930715 SOUTHWEST AIR TO OFFER SERVICE TO BALTIMORE CARRIER ANNOUNCES FORAY INTO EAST COAST MARKET WITH DISCOUNTED FARES BY SHAKIRA HIGHTOWER STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHWEST AIRLINES THE INDUSTRY'S PERENNIAL LOWPRICE CHAMP CONFIRMED THAT IT WILL INITIATE SERVICE TO BALTIMORE WHERE ITS PRESENCE WILL MEAN BIG PROFITABILITY HEADACHES FOR USAIR THE DALLAS COMPETITOR ANNOUNCED ITS FIRST FORAY INTO THE EAST COAST MARKET IN CLASSIC SOUTHWEST STYLE WITH FARES IT SAYS ARE AS MUCH AS 86 CHEAPER THAN WHAT IS CURRENTLY AVAILABLE BEGINNING SEPT 15 SOUTHWEST SAID IT WILL OFFER FIVE DAILY FLIGHTS FROM BALTIMOREWASHINGTON INTERNATIONAL AIRPORT TO CHICAGO'S MIDWAY WITH UNRESTRICTED ONEWAY TICKET PRICES OF 89 APIECE ALSO FROM BALTIMORE SOUTHWEST WILL LAUNCH FIVE DAILY FLIGHTS TO CLEVELAND WITH UNRESTRICTED ONEWAY TICKET PRICES OF 49 APIECE THE AIRLINE SAID BOTH FARES QUALIFY FOR SOUTHWEST'S FRIENDSFLYFREE PROMOTION MEANING THAT WITH SOME CONDITIONS TWO PEOPLE COULD TRAVEL FOR THE PRICE OF ONE TICKET CONTINENTAL AIRLINES SAID IT WOULD CUT ITS UNRESTRICTED ONEWAY FARES TO 109 FROM 209 ON BALTIMORECHICAGO ROUTES AND TO 59 FROM 349 ON BALTIMORECLEVELAND ROUTES CONTINENTAL BASED IN HOUSTON SAID IT WOULD ALSO MATCH SOUTHWEST'S 2FOR1 FEATURE SEVERAL OTHER CARRIERS INCLUDING AMR CORP'S AMERICAN AIRLINES DELTA AIR LINES AND UAL CORP'S UNITED AIRLINES SAID THEY WERE EITHER MONITORING THE SITUATION OR WON'T MATCH THE FARES BECAUSE THEY DON'T OFFER SERVICE ON THE ROUTES BUT USAIR A UNIT OF USAIR GROUP OF ARLINGTON VA HAD NO CHOICE BUT TO RESPOND AGGRESSIVELY TO SOUTHWEST'S ENTRY INTO THE HEART OF ITS EAST COAST OPERATIONS USAIR ISSUED A STATEMENT THAT IT WILL MEET COMPETITIVE MOVES BY EXISTING AND NEW COMPETITORS HEAD ON THE CARRIER CURRENTLY HAS 91 DAILY DEPARTURES AND ITS COMMUTER AFFILIATES HAVE AN ADDITIONAL 89 DAILY FLIGHTS OUT OF THE BALTIMOREWASHINGTON AIRPORT A SPOKESWOMAN SAID USAIR WILL OFFER A 49 ONEWAY UNRESTRICTED FARE BETWEEN BALTIMORE AND CLEVELAND AS WELL AS A NUMBER OF LOWER RESTRICTED FARES FOR INSTANCE TRAVELERS WHO BUY THEIR TICKETS THREE WEEKS IN ADVANCE AND TRAVEL ONLY ON SATURDAY OR SUNDAY COULD GET A TICKET FOR 39 ONE WAY THE SPOKESWOMAN SAID USAIR IS STILL EVALUATING THE BALTIMORECHICAGO FARES CURRENTLY USAIR'S UNRESTRICTED BALTIMORECLEVELAND TICKETS ARE 349 ONE WAY AND ITS UNRESTRICTED BALTIMORECHICAGO O'HARE TICKETS ARE 209 ONE WAY ON SEPT 7 USAIR SAID IT WILL DOUBLE ITS BALTIMORECHICAGO FLIGHTS TO FOUR ADDING TWO NONSTOP FLIGHTS TO CHICAGO MIDWAY TWO OF THE FIVE SOUTHWEST FLIGHTS TO CHICAGO INCLUDE A STOP USAIR ALSO PLANS TO INCREASE SERVICE BETWEEN BALTIMORE AND CLEVELAND TO FIVE FLIGHTS FROM THREE AND WILL INTRODUCE SERVICE FROM BALTIMORE TO SEVERAL OTHER CITIES ALL BEGINNING SEPT 7 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY USAIR ROSE 375 CENTS TO CLOSE AT 15 SOUTHWEST MEANWHILE ROSE 75 CENTS TO 46125 ALSO IN BIG BOARD COMPOSITE TRADING SOME INDUSTRY WATCHERS FIGURE SOUTHWEST'S ARRIVAL ON THE EAST COAST SIGNALS A LIKELY REPLAY OF ITS EXPANSION ON THE WEST COAST WHERE IT HAS PUSHED AVERAGE FARES DOWN SHARPLY AND EVEN FORCED SOME OTHER AIRLINES TO ABANDON THE HIGHLY COMPETITIVE ROUTES BETWEEN LOS ANGELES AREA AIRPORTS AND SAN FRANCISCO AREA AIRPORTS AMERICAN AIRLINES REDUCED ITS PRESENCE IN SAN JOSE DIRECTLY BECAUSE OF SOUTHWEST'S AGGRESSIVE PRICING AND USAIR HAS HAD TO RESPOND TO SOUTHWEST ON THE WEST COAST IN A BID TO MAINTAIN MARKET SHARE IS BALTIMORE JUST THE BEGINNING FOR SOUTHWEST ON ROUTES UP AND DOWN THE EAST COAST A SPOKESWOMAN SAID SOUTHWEST'S CHAIRMAN HERB KELLEHER HAS SAID THAT EXPANDING TO FLORIDA IS POSSIBLE A FEW YEARS OUT BUT IT WOULD BE UNLIKE SOUTHWEST TO HEAD NORTH FROM BALTIMORE THE NOFRILLS SHORTHAUL CARRIER HAS AVOIDED CONGESTED AIRPORTS AND PLACES WITH BAD WEATHER THAT WOULD WRECK ITS ONTIME PERFORMANCE RECORDS SOUTHWEST HAS SAID IT PULLED OUT OF DENVER BECAUSE OF WEATHER BALTIMORE BECOMES THE 37TH CITY SOUTHWEST SERVES ON A ROUTE MAP THAT NOW INCLUDES 17 STATES BALTIMORE IS ALSO THE CITY WHERE FRANK LORENZO FORMER HEAD OF CONTINENTAL AIRLINES HAS SAID HE WOULD LIKE TO PUT THE HEADQUARTERS FOR A NEW LOWFARE AIRLINE HE IS CURRENTLY EMBROILED IN A FIGHT TO WIN GOVERNMENTAL APPROVAL TO START THE CARRIER A SPOKESMAN FOR MR LORENZO SAID WE'VE KNOWN THAT SOUTHWEST PLANNED TO MOVE INTO THAT MARKET FOR SOME TIME SOUTHWEST'S PRESENCE THE SPOKESMAN SAID DOESN'T CHANGE MR LORENZO'S PLANS TO SERVE BOSTON AND ATLANTA FROM BALTIMORE 9307150105 930715 LEISURE & ARTS OPERA FOUR BY STRAUSS THAT DEFY THE DECADENT' LABEL BY DAVID LITTLEJOHN CRITICS I DISCOVERED FIND IT NEXT TO IMPOSSIBLE TO REVIEW PRODUCTIONS OR RECORDINGS OF STRAUSS'S SALOME WITHOUT USING ONE OR THE OTHER OF THESE TERMS NEWSDAY CALLED IT THE DECADENT OPERA PAR EXCELLENCE RICHARD DYER OF THE BOSTON GLOBE CALLED IT A DELIBERATELY SHOCKING PIECE THAT TREATS PROFOUND RELIGIOUS AND PSYCHOLOGICAL ISSUES ON A DECADENT POETIC LEVEL A VULGAR MUSICAL LEVEL AND A GROSS GRAND GUIGNOL THEATRICAL LEVEL STRAUSS'S ELEKTRA FARES NO BETTER EDWARD SAID DESCRIBED IT IN THE NATION AS SOPHOCLES BROUGHT UP TO DATE BY MODERN PSYCHOTHERAPY WITH DECADENCE AS AN AESTHETIC THE LONDON TIMES CALLED THE MUSIC OF CAPRICCIO DECADENTLY INDULGENT ARABELLA SAID THE TIMES MIXES VIENNESE SENTIMENT AND DECADENCE WHILE DER ROSENKAVALIER OFFERS A DEEPLY PROBING LOOK AT THE DECADENT 18TH CENTURY SOCIETY OF VIENNA DURING THE STRAUSS FESTIVAL HELD AT BARD COLLEGE IN ANNANDALEONHUDSON NY LAST SUMMER THE COMPOSER HIMSELF WAS CALLED DECADENT AS WELL AS A GREEDY EGOIST AND OPPORTUNIST A REACTIONARY SELLOUT HE ALSO WAS DEEMED CRIMINALLY INDIFFERENT TO THE NAZI REGIME THE NEW YORK TIMES DETECTED A FAINT SMELL OF DECADENCE WAFTING FROM ONE CONCERT AT BARD SUCH COMFORTABLE ACCESSIBLE MUSIC THE CRITIC FEARED ONLY PLAYS INTO THE HANDS OF FASCIST STRATEGISTS THE FOUR STRAUSS OPERAS PRODUCED BY THE SAN FRANCISCO OPERA LAST MONTH MADE MUCH OF THIS SORT OF CRITICAL ANALYSIS SEEM LIKE NONSENSE THEY ALSO MADE LUDICROUS THE ONCECOMMON NOTION THAT THE COMPOSER TUMBLED OFF THE STRAIGHT AND NARROW PATH LEADING TO MODERNISM AFTER ELEKTRA AND WALLOWED ABOUT IN THE SWAMPS OF REACTION FOR THE NEXT 40 YEARS IN A DEFT WELLCONSIDERED PRODUCTION SALOME 1904 CAME ACROSS AS NO MORE OR LESS MUSICALLY ADVANCED THAN DER ROSENKAVALIER 1910 AT ITS BEST MOMENTS CAPRICCIO 1942 SOUNDED LIKE BOTH OF THEM PARTLY BECAUSE SO MANY STRAUSS OPERAS END WITH VOLUPTUOUS HIGH VOCALIZING FOR SOPRANOS DAPHNE 1938 ON THE OTHER HAND WOULD HAVE BEEN PALLID AND UNINSPIRING WHENEVER IT WAS WRITTEN THE MOST POTENT PRODUCTION WAS PETER HALL'S OF SALOME VERSIONS OF WHICH ALL STARRING HIS WIFE MARIA EWING HAVE BEEN POPPING UP ALL OVER SINCE IT WAS FIRST MOUNTED IN LOS ANGELES SEVEN YEARS AGO THIS I SUSPECT WAS THE STRONGEST VERSION SO FAR AND CONSIDERABLY MORE CONVINCING THAN THE LOS ANGELES ORIGINAL THANKS TO THE FEROCIOUSLY APT CONDUCTING OF DONALD RUNNICLES THE TAUT PRINCIPLED DIRECTION OF JEANNETTE ASTER AND A SUPPORTING CAST SO LAVISH WE GOT LEONIE RYSANEK SINGING HERODIAS MS EWING PETITE POPEYED PUGNOSED AND POUTY REMAINS THE ONLY SALOME IN HISTORY TO LOOK AND ACT LIKE THE BRATTY TEENAGER SHE IS SHE WAS GHOULISHLY SUPREME IN HER LONG FINAL SOLO CARESSING AN ALMOSTTOOREALLOOKING HEAD VEINS AND ALL THREE YEARS AGO THE SAN FRANCISCO OPERA STAGED A HANDSOME PRODUCTION OF CAPRICCIO AROUND THE SINGULAR POISE AND VOCAL AGILITY OF KIRI TE KANAWA BUT ALL PEOPLE WANTED TO TALK ABOUT THEN WERE THE COSTUMES DESIGNED BY GIANNI VERSACE TO RESET THIS WORLDLY OPERAABOUTCREATINGANOPERAABOUTOPERA SOMETIME IN THE 1920S THIS TIME WITH THE SAME SETS AND THE SAME SOPRANO MS TE KANAWA IS THE BEST COUNTESS SINCE ELISABETH SCHWARZKOPF BUT WITH NEW/OLD COSTUMES BY THIERRY BOSQUET THEY GOT IT RIGHT CAPRICCIO A CHARMING YET SERIOUS WORK IS WHOLLY MADE OUT OF ALLUSIONS TO THE 18TH CENTURY IN WHICH STRAUSS WANTED IT SET AND IS ENFEEBLED BY NEEDLESS UPDATING THE SCORE IS STILL STRAUSS'S WINTRY CYNICAL TAKE ON THE 18TH CENTURY THE KIND OF MUSIC THAT LED ONE COMMENTATOR DURING THE FESTIVAL TO CALL HIM THE PROTOPOSTMODERNIST I HAVE NO PROBLEM WITH THAT OR WITH ANYTHING ELSE ABOUT THIS SUPPOSEDLY TALKY UNDERSCORED SELFMOCKING WORK IT IS PROBABLY MOST EFFECTIVE WITH REGULAR OPERAGOERS WHO LIKE ME ARE ABNORMALLY FASCINATED BY THE MAGIC AND MADNESS OF THEATER ESPECIALLY WHEN THE DRAMATIC ARGUMENT IS SET TO SUCH A CLEVER AND APPROPRIATE SCORE MR RUNNICLES CONDUCTED AND FOUND AS PERFECT A TOUCH FOR THIS BOUNCY PSEUDOEVERYTHING JAPE AS HE HAD FOR THE BARED FLESH SEVERED HEADS AND COMPULSIVE SCREAMS OF SALOME AS FOR DER ROSENKAVALIER ITS MOST INTERESTING FEATURE WAS THE REPRODUCTION OF ALFRED ROLLER'S ORIGINAL SET DESIGNS WHICH WERE DRAWN IN A KIND OF SUAVE ARTNOUVEAU OR JUGENDSTIL LINE ON MILDLY ACIDCOLORED SETS LIKE CARDBOARD DOLLHOUSE ROOMS LIKE THE MUSIC THE SETS EVOKED THE VIENNA OF 1770 AS WELL AS THE VIENNA OF 1910 INSIDE THE SETS THERE WAS NO SINGING FOR THE AGES ONE IS ALWAYS MEASURING THE THREE ROSENKAVALIER SOPRANOS PLUS BARON OCHS AGAINST DREAM TEAMS OF THE PAST FELICITY LOTT NEW TO US WAS A MARSCHALLIN WITH ALL THE RIGHT NOTES BUT NO AUDIBLE OR VISIBLE HEART BEHIND THEM FREDERICA VON STADE A FAR BETTER SINGER AND ACTRESS WILL PROBABLY PLAY CONVINCING LOVESTRUCK MALE TEENAGERS UNTIL SHE IS 60 BUT SOME OF THE SILVER IS WEARING OFF THE ROSE CHRISTINE SCHAEFER MAKING HER US DEBUT AS SOPHIE LOOKED 16 AND FRESH FROM THE CONVENT THE REAL STARS WERE STRAUSS AND VON HOFMANNSTHAL MAESTRO CHARLES MACKERRAS ALFRED ROLLER AND HIS COPYIST AND ERIC HALFVARSON AS OCHS DAPHNE WAS NOT SUCH A SIMPLE PLEASURE AND I DOUBT THAT ANY OPERA COMPANY COULD FILL A LARGE HOUSE WITH SPECTATORS FOR IT WERE THE PIECE NOT OFFERED AS PART OF A PACKAGE WITH MORE SUBSTANTIAL WORKS BOTH CONDUCTOR ANDREW DAVIS AND LEAD SOPRANO JANICE WATSON IN ANOTHER US DEBUT HAVE ESTABLISHED IMPRESSIVE CAREERS IN BRITAIN BUT NEITHER THEY NOR THE SUPPORTING CAST AND CHORUS ALL IN BLACKANDWHITE CONCERT GEAR STANDING BEFORE CLOUDYSKY BACKDROPS AND MAKING OCCASIONAL GESTURES COULD BREATHE ANY DRAMATIC OR MUCH MUSICAL LIFE INTO THIS PASTORAL ORATORIO TUXEDOED SHEPHERDS SANG BACKUP TO A FANATIC ECOLOGICALLY CORRECT VIRGIN WHO WOULD RATHER BE AT ONE WITH HER TRUE BROTHERS AND SISTERS THE TREES BROOKS BREEZES AND BUTTERFLIES THAN BE FORCED INTO UNION WITH A MERE MALE WHETHER HUMAN OR DIVINE AFTER 95 MINUTES OF PREDICTABLE SEMIPROGRAMMATIC MUSIC SHE GOT HER WISH NO GREAT SINGING EXCEPT FROM DAPHNE'S HUGE EARTH MOTHER GWENETH BEAN WHO MUST DO A SUPER ERDA IN WAGNER'S RING THE ONLY THING DECADENT ABOUT STRAUSS IN THE END MAY HAVE BEEN HIS CLEAREYED REALIZATION THAT THE FORM HE LOVED TO WRITE FOR WAS ITSELF IN DECAY SOMETHING PUCCINI COULD NEVER HAVE ADMITTED SO HE WROTE ABOUT THAT MAKING FUN OF GRAND OPERA BY WAY OF JOKEY INSET ARIAS BACKSTAGE SATIRE AND CONSCIOUSLY OVERBLOWN EFFECTS AND EMOTIONS ALL WHILE WRITING WHAT MAY HAVE BEEN THE LAST VIABLE CHAPTER IN THE HISTORY OF OPERA AS A POPULAR ART MR LITTLEJOHN IS A NOVELIST CRITIC AND PROFESSOR OF JOURNALISM AT THE UNIVERSITY OF CALIFORNIA BERKELEY 9307150104 930715 DRUCKER ON MANAGEMENT THE RETAIL REVOLUTION BY PETER F DRUCKER WHEREVER I WENT IN EUROPE IN MAY AND JUNE BRITAIN FRANCE GERMANY ITALY BELGIUM AUSTRIA SWITZERLAND I HEARD THE SAME LAMENT EUROPEAN ECONOMIC UNIFICATION IS AT A STANDSTILL IN MANUFACTURING AND FINANCE BUT IN RETAILING WHERE NO ONE EXPECTED IT ECONOMIC UNIFICATION IS GALLOPING ACROSS EUROPE TEN YEARS AGO ALDI A FOOD DISCOUNTER WAS STILL PURELY GERMAN NOW IT IS IN SEVEN EUROPEAN COUNTRIES WITH SOME 3300 STORES OTHER FOOD DISCOUNTERS GERMAN FRENCH DANISH ARE EXPANDING WITH SIMILAR SPEED ACROSS EUROPE FROM SPAIN TO NORWAY SWEDENBASED IKEA NOW DOMINATES WESTERN EUROPE'S FURNITURE BUSINESS AND IS OPENING STORES IN THE FORMER RUSSIAN SATELLITES ITALYBASED BENETTON WOMEN'S FASHIONS AND BRITAINBASED BODY SHOP TOILETRIES ARE BECOMING MARKET LEADERS IN ONE EUROPEAN COUNTRY AFTER THE OTHER THE INTERNATIONALIZATION OF RETAILING IS BY NO MEANS CONFINED TO EUROPE JAPANESE RETAILERS BOTH FOOD AND NONFOOD ARE RAPIDLY EXPANDING IN CHINA IKEA AND BENETTON HAVE NEARLY AS MUCH MARKET PENETRATION IN THE US AS THEY HAVE IN EUROPE AMERICA'S WALMART IS SET TO COVER MEXICO WITH SAM'S CLUBS WHILE TOYS R US IS PUSHING AGGRESSIVELY INTO JAPAN MOST OF THE EARLIER RETAILERS WHO WENT MULTINATIONAL TRIED TO IMPROVE SLIGHTLY ON WHAT RETAILERS IN THEIR HOST COUNTRIES WERE ALREADY DOING QUITE WELL THIS WAS TRUE OF SEARS BUILDING TRADITIONAL SEARS STORES IN LATIN AMERICA IN THE '50S OR GERMAN TENGELMANN AND DUTCH AHOLD BUYING ESTABLISHED SUPERMARKET CHAINS IN THE US IN THE 1970S AND EARLY 1980S BUT THE NEW MULTINATIONALS ARE REVOLUTIONARIES REJECTING THE VERY ASSUMPTIONS THAT MOST RETAILERS STILL CONSIDER HOLY WRIT DURING THE PAST HALFCENTURY SHOPPING CENTER HAS BECOME ALMOST SYNONYMOUS WITH SUCCESSFUL RETAILING AND THE BIGGER THE BETTER BUT THE NEW RETAILERS SHUN SHOPPING CENTERS THEY BUILD FREESTANDING STORES OR GO INTO MINIMALLS THAT CONTAIN ONLY A HANDFUL OF SHOPS THE SHOPPING CENTER A TOP EXECUTIVE OF ONE OF THE FASTESTGROWING EUROPEAN DISCOUNT RETAILERS SAID TO ME SUBMERGES THE PERSONALITY OF THE INDIVIDUAL STORE INTO THE ANONYMITY OF THE PARKING LOT AND THE NEW RETAILERS AIM AT A SHARPLY PROFILED PERSONALITY AND A CLEAR MARKET NICHE THE NEW RETAILERS RARELY SPEAK OF REENGINEERING TO THEM IT SOUNDS TOO MUCH LIKE MANUFACTURING BUT THEY CONSTANTLY REDESIGN OPERATIONS INDEED MANY REDEFINE THE ENTIRE BUSINESS WALMART'S SUCCESS FOR EXAMPLE RESTS IN LARGE MEASURE ON ITS REDEFINING RETAILING AS THE MOVING OF MERCHANDISE RATHER THAN ITS SALE THIS LED TO THE INTEGRATION OF THE ENTIRE PROCESS ALL THE WAY FROM THE MANUFACTURER'S MACHINE TO THE SELLING FLOOR ON THE BASIS OF REALTIME INFORMATION ABOUT CUSTOMER PURCHASES AS A RESULT WALMART COULD CUT OUT THREE TIERS OF WAREHOUSES AND A FULL THIRD OF THE COSTS OF TRADITIONAL RETAILING BUT WALMART STILL CARRIES A FULL ASSORTMENT OF GOODS AND THAT MEANS THOUSANDS OF ITEMS ALDI HAS REENGINEERED OPERATIONS IN MUCH THE SAME WAY BUT IT ALSO HAS CUT ITS ASSORTMENT TO THE 600 ITEMS THAT ITS RESEARCH SHOWED ARE ALL A HOUSEHOLD BUYS REGULARLY EACH ITEM HAS BEEN DESIGNED BY ALDI IS MADE TO ITS SPECIFICATIONS AND IS SOLD UNDER ITS OWN BRAND NAME AS A RESULT IT HAS DOUBLED OR TRIPLED SALES PER SQUARE FOOT OF SHELF SPACE A RETAILER'S BASIC CAPITAL AND COST CENTER SPAR ANOTHER GERMAN DEEPDISCOUNTER IS GOING FUTHER STILL IT WILL CARRY ONLY THE 200 ITEMS A HOUSEHOLD BUYS EVERY WEEK ANOTHER FASTGROWING EUROPEAN RETAILER WILL APPLY THE SAME PRINCIPLE A DIFFERENT WAY ITS DEEPDISCOUNT CLUBS WILL CARRY ONLY THE 200 ITEMS NEEDED FOR SPECIAL OCCASIONS A BIRTHDAY PARTY A WEDDING AN ANNIVERSARY AND ABSOLUTELY NOTHING PEOPLE BUY REGULARLY OR OFTEN IKEA CAN SELL AT A LOW PRICE BECAUSE IT REALIZED THAT HALF THE COST OF FINISHED FURNITURE IS FINAL ASSEMBLY PROVIDED THAT PARTS ARE METICULOUSLY ENGINEERED AND INSTRUCTIONS CRYSTALCLEAR EVEN MECHANICAL MORONS CAN DO THE FINAL ASSEMBLY EVERYBODY IN RETAILING TALKS OF SERVICE AS THE KEY TO SUCCESS IF NOT TO SURVIVAL SO DO THE NEW RETAILERS BUT THEY MEAN SOMETHING DIFFERENT FOR TRADITIONAL MERCHANTS SERVICE MEANS SALESPEOPLE WHO PERSONALLY TAKE CARE OF AN INDIVIDUAL CUSTOMER BUT THE NEW RETAILERS EMPLOY VERY FEW SALESPEOPLE SERVICE TO THEM MEANS THAT CUSTOMERS DO NOT NEED A SALESPERSON DO NOT HAVE TO SPEND TIME TRYING TO FIND ONE DO NOT HAVE TO ASK DO NOT HAVE TO WAIT IT MEANS THAT THE CUSTOMERS KNOW WHERE GOODS ARE THE MOMENT THEY ENTER THE STORE IN WHAT COLORS AND SIZES AND AT WHAT PRICE IT MEANS PROVIDING INFORMATION BUT SERVICE FOR THE NEW RETAILERS ALSO MEANS GETTING CUSTOMERS OUT OF THE STORE AS FAST AS POSSIBLE ONCE THEY HAVE MADE THEIR PURCHASES A EUROPEAN SUPERDISCOUNTER IS STUDYING A TECHNOLOGY THAT ELIMINATES THE CHECKOUT COUNTER WHEN A CUSTOMER HAS DECIDED TO BUY AN ITEM SHE PUTS HER CREDIT CARD INTO A SLOT ON THE SHELF AND DOES SO AS MANY TIMES AS SHE WANTS PACKAGES OR BOTTLES OF A PARTICULAR ITEM THERE IS NO SHOPPING CART HER PURCHASES ARE PACKED AND WAITING WHEN SHE IS READY TO LEAVE ALL SHE HAS TO DO IS TO CHECK THE GOODS AND SIGN A PREPARED CREDITCARD SLIP RAY KROC THE FOUNDER OF MCDONALD'S THE FIRST THE MOST SUCCESSFUL AND THE MOST MULTINATIONAL OF THE NEW RETAILERS IS REPUTED TO HAVE SAID A MOTHER WITH TWO SMALL CHILDREN DOES NOT COME TO OUR STORE BECAUSE THE HAMBURGERS ARE DELICIOUS SHE COMES BECAUSE THE RESTROOMS ARE CLEAN THIS IS OFTEN CONSIDERED PURE WHIMSY BUT IT WAS MEANT TO EXPRESS A RADICALLY NEW CONCEPT OF WHAT SHOPPING MEANS WHAT CUSTOMERS AT LEAST A GOOD MANY OF THEM WANT IS NOT SHOPPING THAT IS ENJOYABLE BUT SHOPPING THAT IS PAINLESS THE RETAIL STORE WAS INVENTED IN THE LATE 17TH CENTURY FIRST IN JAPAN SHORTLY THEREAFTER IN WESTERN EUROPE FROM ITS VERY EARLY DAYS IT HAS BEEN BASED ON THREE ASSUMPTIONS SHOPPING OFFERS THE CUSTOMER ESPECIALLY THE HOUSEWIFE PERHAPS THE ONLY WAY TO HAVE A LITTLE CHOICE TO MAKE A FEW DECISIONS TO HAVE A LITTLE SAY AND A LITTLE POWER SECOND IT OFFERS THE HOUSEWIFE THE ONLY BREAK FROM THE MONOTONOUS AND DREARY ROUTINE THAT THE GERMANS CALL THE THREE K'S KIRCHE KINDER KUECHE CHURCH CHILDREN KITCHEN AND FINALLY THE RETAIL STORE OFFERS ACCESS TO THE WORLD TO PEOPLE WHOSE INFORMATION OTHERWISE CONSISTS OF INANE CHAT OVER THE BACK FENCE OR AT THE SEWING CIRCLE THE RETAIL STORE HAS OF COURSE CHANGED MANY TIMES OVER THE PAST 300 YEARS OF ITS EXISTENCE BUT TRADITIONAL RETAILERS DEPARTMENT STORES SHOPPING CENTERS HARDWARE STORES SUPERMARKETS SHOE STORES BY AND LARGE STILL ACCEPT THE TRADITIONAL ASSUMPTIONS IF ONLY SUBCONSCIOUSLY THE NEW RETAILERS HOWEVER REJECT THEM THEIR PROTOTYPICAL CUSTOMER HAS A PAYING JOB IF NOT A CAREER SHE HAS MANY OCCASIONS TO CHOOSE AND TO MAKE DECISIONS MOST OF THEM MORE INTERESTING THAN WHAT TO COOK FOR DINNER AND EVEN IF SHE NEVER LEAVES THE HOUSE SHE HAS UNLIMITED ACCESS TO THE OUTSIDE WORLD THROUGH THE TELEPHONE AND TV SCREEN SHOPPING IS NO LONGER A SATISFACTION TO HER IT IS A CHORE THE DEPARTMENT STORE THE SUCCESS STORY OF THE EARLY 20TH CENTURY IS SLIPPING EVERYWHERE SHOPPING CENTERS AND SUPERMARKETS THE SUCCESS STORIES OF THE PAST HALFCENTURY ARE AT BEST HOLDING THEIR OWN THE NEW RETAILERS ARE RAPIDLY EXPANDING STILL THERE ARE SIGNS THAT THEIRS TOO MAY BE A FAIRLY SHORTLIVED SUCCESS RETAILERS NOW TALK OF SHOPPING WITHOUT A STORE THROUGH INTERACTIVE TV THEY TALK OF VIRTUAL REALITY IN WHICH THE CUSTOMER IN HER OWN LIVING ROOM WALKS THROUGH A SIMULATED SHOPPING CENTER ON HER COMPUTER SCREEN TRIES ON A BLOUSE AND ORDERS BY PUSHING A FEW BUTTONS THE TECHNOLOGY FOR ALL THIS IS AVAILABLE AND INCREASINGLY LESS EXPENSIVE AND THERE ARE QUITE A FEW SIGNS THAT A SUBSTANTIAL NUMBER OF CUSTOMERS ARE BECOMING RECEPTIVE TO IT THERE IS THE UPSURGE IN CATALOG SALES IN ALL DEVELOPED COUNTRIES NONTECH SHOPPING WITHOUT A STORE IN THE US DIRECT SELLING OVER CABLE TV HAS BEEN SUCCESSFUL FOR COSTUME JEWELRY FOR INSTANCE IN SOME AFFLUENT SUBURBS INTERACTIVE TV ALSO WORKS FOR SELLING READYTOHEAT GOURMET MEALS IN MORE AND MORE BEAUTY PARLORS WOMEN TRY ON AND ADJUST DIFFERENT HAIRCUTS ON A TV MONITOR DECIDING WHICH STYLE SUITS THEM BEST SHOPPING WITHOUT A STORE IS THUS NO LONGER SCIENCE FICTION BUT IT IS STILL SPECULATION AND A LOT OF HYPE BUT EVEN WITHOUT ANY NEW TECHNOLOGY RETAILING HAS ALREADY CHANGED THE CHANGES ARE HAVING PROFOUND EFFECTS ON ADVERTISING ON CONSUMERGOODS MANUFACTURERS AND ON THE STRUCTURE OF THE ECONOMY RETAILING RATHER THAN MANUFACTURING OR FINANCE MAY BE WHERE THE ACTION IS NOW MR DRUCKER IS A PROFESSOR OF SOCIAL SCIENCES AT THE CLAREMONT GRADUATE SCHOOL IN CALIFORNIA 9307150103 930715 LAW LATEST INDICTMENT IN BOMBING CASE CITES '91 CONTACTS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A GOVERNMENT INFORMER HAD CONTACTS AS EARLY AS 1991 WITH AN ALLEGED TERRORIST GROUP ACCUSED OF PLOTTING TO BOMB BUILDINGS IN NEW YORK PROSECUTORS SAID THAT INFORMATION CAME IN A NEW INDICTMENT THAT ADDED IBRAHIM A ELGABROWNY ONE OF THE MEN ARRESTED IN CONNECTION WITH THE FEBRUARY WORLD TRADE CENTER BOMBING TO THE LIST OF DEFENDANTS IN A SEPARATE PLOT TO BOMB THE UNITED NATIONS BUILDING AND OTHER NEW YORK CITY LANDMARKS ACCORDING TO THE INDICTMENT MR ELGABROWNY IN NOVEMBER 1991 CONTACTED A PERSON WORKING AS A CONFIDENTIAL INFORMANT THE INDICTMENT SAID THAT THE TWO MEN AND OTHERS DISCUSSED PLANS TO BOMB VARIOUS TARGETS IN THE NEW YORK CITY AREA THE NAMING OF MR ELGABROWNY AN EGYPTIAN IMMIGRANT AS A DEFENDANT INCREASES TO 11 THE NUMBER OF DEFENDANTS CHARGED WITH BEING INVOLVED IN THE CONSPIRACY TO BLOW UP THE UN AND OTHER BUILDINGS MR ELGABROWNY WAS CHARGED WITH OBSTRUCTING AN INVESTIGATION INTO THE WORLD TRADE CENTER BOMBING BUT NOT WITH TAKING PART IN THE PLOT THE DISCLOSURE RAISES QUESTIONS ABOUT WHETHER THE GOVERNMENT COULD HAVE KNOWN ABOUT PLANS TO BLOW UP THE WORLD TRADE CENTER BEFORE THE BOMBING THE INDICTMENT DOESN'T SAY WHETHER THE INFORMANT WAS TOLD SPECIFICALLY THAT THE WORLD TRADE CENTER MIGHT BE AMONG THE TARGETS THE INFORMER IS APPARENTLY THE SAME ONE WHO LED FEDERAL AGENTS TO THE SUBSEQUENT UN BOMBING CONSPIRACY BASED ON INFORMATION FROM THAT INFORMER EMAD A SALEM A FORMER EGYPTIAN ARMY OFFICER WHO WORKED AS A BODYGUARD AND TRANSLATOR FOR A RADICAL EGYPTIAN CLERIC IN THE NEW YORK AREA FEDERAL AGENTS ARRESTED FIVE MEN AS THEY WERE ALLEGEDLY MIXING INGREDIENTS FOR EXPLOSIVES MR SALEM WASN'T IDENTIFIED BY NAME IN THE INDICTMENT PROSECUTORS HAVE DECLINED TO SAY WHEN MR SALEM BEGAN WORKING AS AN INFORMER MATTHEW A FISHBEIN CHIEF ASSISTANT US ATTORNEY IN NEW YORK DECLINED TO COMMENT ON WHETHER THE GOVERNMENT WAS AWARE OF THE POSSIBILITY OF A BOMBING AT THE WORLD TRADE CENTER MR ELGABROWNY'S ATTORNEY WILLIAM KUNSTLER CALLED THE NEW INDICTMENT A LEGAL PLOY HE SAID THAT HE HAD PLANNED TO CALL MR SALEM AS A WITNESS IN MR ELGABROWNY'S CASE IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING THE CHARGE IN THAT CASE OBSTRUCTION OF JUSTICE IS FAR LESS SERIOUS THAN THE CONSPIRACY CHARGE HE FACES IN THE NEW INDICTMENT THE GOVERNMENT CAN'T AFFORD TO HAVE HIM TAKE THE STAND IN A RELATIVELY MINOR CASE BEFORE THE LARGER CASE MR KUNSTLER SAID MR ELGABROWNY IS A COUSIN OF ELSAYYID NOSAIR AN EGYPTIAN IMMIGRANT ACQUITTED ON CHARGES OF ASSASSINATING RIGHTWING RABBI MEIR KAHANE IN NEW YORK THE INDICTMENT SAYS THE DISCUSSIONS ABOUT BOMBING TARGETS IN NEW YORK BEGAN AROUND THE TIME OF MR NOSAIR'S CONVICTION IN DECEMBER 1991 ON A GUN CHARGE RELATED TO THE KAHANE CASE 9307150102 930715 NOTABLE & QUOTABLE FROM ARE DRUG PRICES TOO HIGH AN ARTICLE BY MURRAY WEIDENBAUM IN THE SUMMER ISSUE OF THE PUBLIC INTEREST WHEN FACED WITH DIFFICULT APPROVAL DECISIONS FDA REVIEWERS OFTEN ASK FOR COSTLY ELABORATE NEW STUDIES IF ANYONE IS HURT BY A NEW DRUG AFTER ALL IT WILL BE FRONTPAGE NEWS BUT IF 10000 PEOPLE DIE BECAUSE APPROVAL IS DELAYED THE PUBLIC WILL NEVER KNOW 9307150101 930715 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE DEMOCRATS SEEM HEADED FOR COMPROMISE ON SLIGHT INCREASE IN TAXES ON GASOLINE BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS SEEM HEADED TOWARD A COMPROMISE DEFICITREDUCTION PLAN WITH A FUELTAX INCREASE NOT MUCH HIGHER THAN THE SENATE'S PROPOSED 43 CENTS AND AS A CONSEQUENCE TOTAL SAVINGS THAT ARE SHORT OF PRESIDENT CLINTON'S GOAL OF 500 BILLION OVER FIVE YEARS MANY HOUSE AND SENATE DEMOCRATS HAVE ACCEPTED THE IDEA OF A SMALL TAX INCREASE ON GASOLINE AND OTHER TRANSPORTATION FUELS AS THE SIMPLER MORE POLITICALLY PALATABLE ALTERNATIVE TO MR CLINTON'S ORIGINAL PROPOSAL FOR A BROADBASED ENERGY TAX SOME NOW WANT NO ENERGY TAX AT ALL BUT THE EFFECT OF EITHER STEP MEANS A PACKAGE THAT HAS SOMEWHAT LESS DEFICIT REDUCTION THAN THE PRESIDENT WANTS NEGOTIATIONS OFFICIALLY BEGIN TODAY ON A COMPROMISE OF THE HOUSE AND SENATE VERSIONS OF MR CLINTON'S ECONOMIC PROGRAM IN A CNN INTERVIEW ON THE EVE OF THOSE TALKS SEN DANIEL MOYNIHAN SAID HE HOPES THE ENERGY TAX THAT NEGOTIATORS AGREE UPON WILL BE LIMITED TO A FUELS TAX INCREASE A BIT HIGHER THAN THE SENATE'S PROPOSAL THE NEW YORK DEMOCRAT WHO IS THE SENATE'S CHIEF NEGOTIATOR IN THE TALKS ALSO SIGNALED THAT HE'S AGAINST THE IDEA OF BROADENING THE ENERGY TAX TO INCLUDE A TAX ON ELECTRICITY NATURAL GAS AND HEATING OIL FOR RESIDENTIAL AND COMMERCIAL USE THAT IDEA HAD ARISEN AS DEMOCRATS SEARCHED FOR WAYS TO COMPLY WITH PRESIDENT CLINTON'S CALL FOR A BROADBASED ENERGY TAX TO HELP CUT THE DEFICIT I CERTAINLY HOPE WE CAN STAY WITH THAT SIMPLE GASOLINE TAX SEN MOYNIHAN SAID IN THE INTERVIEW BUT THE SENATE'S PROPOSAL WOULD RAISE JUST 22 BILLION OVER FIVE YEARS WHILE THE HOUSE VERSION OF THE BILL INCLUDES MR CLINTON'S ORIGINAL BROADBASED ENERGY TAX RAISING NEARLY 72 BILLION THERE HAS BEEN SPECULATION THAT NEGOTIATORS WOULD SPLIT THE DIFFERENCE ENDING WITH AN ENERGY TAX OF ABOUT 50 BILLION OVER FIVE YEARS BUT SEN MOYNIHAN SAID WE WON'T GO THAT HIGH THAT SUGGESTS A FUELTAX INCREASE OF LESS THAN 10 CENTS A GALLON SINCE AN INCREASE OF THAT SIZE OVER FIVE YEARS WOULD BRING IN ABOUT 50 BILLION MR CLINTON PLANS TO VISIT THE CAPITOL TODAY IN A SEPARATE CNN INTERVIEW HE SAID I WANT TO TALK ABOUT WHAT HAPPENED ON OUR TRIP WHAT HAPPENED AT THE TOKYO SUMMIT AND HOW IMPORTANT IT IS FOR US NOW TO PASS THIS BUDGET THIS IS OUR PART OF THE BARGAIN WE'RE TRYING TO RESTORE GROWTH TO THE WORLD ECONOMY BUT TO DO IT WE'VE GOT TO BRING THE AMERICAN BUDGET DEFICIT DOWN TOO THE ENERGY TAX IS A MAIN POINT OF CONTENTION IN THE TALKS WHICH COULD LAST FOR TWO TO THREE WEEKS MR CLINTON'S MORE COMPLEX ENERGY TAX IS DEAD BUT DEMOCRATS ARE GRAPPLING FOR ALTERNATIVE REVENUE SOURCES BOTH TO CUT THE DEFICIT AND TO OFFSET THE COST OF SEPARATE INITIATIVES FOR POOR WORKERS AND SMALL BUSINESS THE CONTROVERSIES THAT WILL PLAGUE NEGOTIATORS ON THE ISSUE WERE WELL ILLUSTRATED IN SEPARATE CAUCUSES OF HOUSE DEMOCRATS FIRST IN A MEETING OPEN TO ALL HOUSE DEMOCRATS AN ALLIANCE OF LIBERALS AND CONSERVATIVES ARGUED FOR ELIMINATING ANY ENERGY TAX SO THAT MIDDLECLASS AND LOWERCLASS WORKERS PAY NO TAX INCREASES PROPONENTS WOULD MAKE UP THE REVENUES BY BOOSTING THE TAX INCREASES PROPOSED IN THE PLAN FOR TOPINCOME INDIVIDUALS AND FOR CORPORATIONS THE REPUBLICANS HAVE BEEN CRYING CROCODILE TEARS THAT WE'RE TAXING THE MIDDLECLASS SAID REP DAVID OBEY D WIS NOTING THAT MOST OF THE BILL'S TAX INCREASES FALL ON THE WEALTHY LET'S CALL THEIR BLUFF AND SAY NO TAXES ON THE MIDDLE CLASS PERIOD BUT MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS IN A SESSION WITH VICE PRESIDENT AL GORE OPPOSED DROPPING ANY ENERGY TAX BECAUSE THE REVENUES IT WOULD RAISE ARE NEEDED TO PAY FOR PROVISIONS THE BLACK CAUCUS WANTS CHIEF AMONG THEM ARE TAX INCENTIVES TO SPARK BUSINESS INVESTMENT IN DEPRESSED EMPOWERMENT ZONES AND A GREATLY INCREASED TAX CREDIT FOR POOR WORKERS LAST NIGHT THE HOUSE ADOPTED A RESOLUTION URGING THE CONFEREES TO TAKE A STEP THAT WOULD ADD TO THE REVENUE SQUEEZE THE NONBINDING RESOLUTION CALLS ON THE NEGOTIATORS TO ACCEPT THE SENATE BILL'S VERSION OF A PROPOSED TAX INCREASE FOR SOME HIGHERINCOME SOCIAL SECURITY RECIPIENTS IT WOULD HIT FEWER BENEFICIARIES THAN THE HOUSE BILL OR MR CLINTON'S PLAN WOULD HAVE UNDER THE SENATE PROVISION INDIVIDUALS WITH INCOME OF 32000 A YEAR OR COUPLES WITH 40000 WOULD PAY TAXES ON 85 OF THEIR BENEFITS INSTEAD OF 50 AS CURRENTLY THE VOTE WAS UNANIMOUS AND CONFEREES WERE EXPECTED TO TAKE THE STEP ANYWAY BUT THE CHANGE WOULD RESULT IN ABOUT 6 BILLION LESS IN REVENUES OVER FIVE YEARS THAN THE HOUSE VERSION BILL WOULD HAVE PRODUCED ONE BRIGHT SPOT FOR THE ADMINISTRATION AND DEMOCRATIC LEADERS IS THAT RELATIONS WITH THE BLACK CAUCUS APPEAR TO BE IMPROVING THE CAUCUS WHICH LATELY HAD REFUSED TO MEET WITH MR CLINTON NOW PLANS TO MEET WITH HIM NEXT WEEK SEPARATELY THE WHITE HOUSE BUDGET OFFICE HAS DELAYED UNTIL AUGUST A MIDYEAR UPDATE OF ECONOMIC AND BUDGET PROJECTIONS THAT BY LAW IS SUPPOSED TO BE SUBMITTED TO CONGRESS IN MIDJULY PREVIOUS ADMINISTRATIONS ALSO HAVE MISSED THE DEADLINE BUT NEW MEXICO SEN PETE DOMENICI SENIOR REPUBLICAN ON THE BUDGET COMMITTEE URGED THE WHITE HOUSE TO SUBMIT THE REPORT PROMPTLY SO THAT THE HOUSESENATE CONFEREES CAN USE UPTODATE FIGURES SEN DOMENICI SUGGESTED THAT THE PROJECTION FOR THIS YEAR'S DEFICIT COULD BE AS MUCH AS 50 BILLION LOWER THAN THE EARLIER ESTIMATE WEAKENING THE CASE FOR TAX INCREASES BUT ADMINISTRATION OFFICIALS SAY THE DEFICIT OUTLOOK HASN'T CHANGED MUCH THE EFFECTS OF SLOWERTHANANTICIPATED ECONOMIC GROWTH ARE OFFSET BY THE EFFECTS OF LOWERTHANANTICIPATED INTEREST RATES AND DELAYS IN SPENDING ON THE SAVINGS AND LOAN CLEANUP ARE SIMPLY PUSHING OUTLAYS INTO THE FUTURE DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9307150100 930715 LEISURE & ARTS FILM WHALE IN DISTRESS BOY IN BIG LEAGUES BY JULIE SALAMON I BORROWED THREE ADOLESCENTS FOR MY VIEWING OF FREE WILLY AND TOOK MUCH PLEASURE IN THEIR DELIGHTED REACTION TO THIS STORY OF AN OUTCAST BOY WHO BEFRIENDS AN OUTCAST WHALE AND ULTIMATELY SAVES HIS LIFE HOWEVER I SOON NOTICED I WAS ENJOYING THEIR REACTION MORE THAN I WAS ENJOYING THE MOVIE ON THE SURFACE THE MOVIE HAS EVERYTHING IT NEEDS DIRECTOR SIMON WINCER PERHAPS BEST KNOWN FOR THE TELEVISION MINISERIES LONESOME DOVE IS A STURDY STORYTELLER WHO PAYS ATTENTION TO DETAIL THE MOVIE BEGINS WITH WILLY'S CAPTURE AND ENDS WITH HIS ESCAPE AND ALONG THE WAY HIS BOY RESCUER LEARNS VALUABLE LESSONS ABOUT LOVE AND DUTY AND IS SAVED FROM SADNESS HIMSELF THERE IS FOOTAGE OF REAL WHALES ALWAYS NICE TO SEE AND A SURPRISINGLY CUDDLY FAKE WHALE DESIGNED BY THE LARGE CREW ASSEMBLED BY WHALE EFFECTS SUPERVISOR WALT CONTI WHO PLAYS WILLY IN SCENES INVOLVING CONTACT WITH HUMANS UNFORTUNATELY THE MOVIE NEVER DEVIATES FROM ITS PLOT OR ITS MESSAGE INTO THOSE ARTISTIC BYWAYS THAT CAN CONNECT AN AUDIENCE WITH THE MAGICAL NOTION BEING PROPOSED AFTER ALL THE PREMISE HERE IS THAT A YOUNG BOY MAKES A SPIRITUAL CONNECTION WITH A WHALE AND VICE VERSA THIS IS NOT ORDINARY EVERYDAY STUFF BUT THE FILMMAKERS EITHER DIDN'T HAVE THE NECESSARY IMAGINATION OR DIDN'T WANT TO RISK TRANSCENDING THE OBVIOUS THEY RECOGNIZE THAT WHAT HAPPENS BETWEEN THE YOUNG BOY JESSE AND WILLY THE WHALE IS AN UNUSUAL EVENT YET THEIR TECHNIQUE IS WORKMANLIKE WITH EMOTIONAL MOMENTS PUNCTUATED BY DROPPED JAWS OR USUALLY SWELLING MUSIC THAT MUSIC BECOMES QUITE ANNOYING ESPECIALLY AT THE MOMENT WHEN WILLY RESPONDS TO JESSE'S HARMONICA THAT SIMPLE SOUND IS IMMEDIATELY SWAMPED BY A TEARY SYMPHONIC SOUND I'M SPEAKING AS AN ADULT NONE OF THIS SEEMED TO BOTHER THE YOUNG PEOPLE WATCHING THE MOVIE ALL RIGHT I CONFESS I WAS ALSO A LITTLE PUT OFF BY THE OVERWHELMING NICENESS THAT SUFFUSES THE FILM EVERYONE EXCEPT FOR THE EVIL AQUATICPARK OWNER WHO WANTS TO GET RID OF THE NONINCOMEPRODUCING WILLY SEEMED UNNATURALLY NICE TO ME I SUPPOSE THIS IS AN IMPROVEMENT FROM THE KIDS' MOVIES OF A FEW YEARS BACK IN WHICH ADULTS WERE UNIFORMLY PORTRAYED AS EITHER VENAL MANIPULATORS OR HAPLESS DOLTS IN THIS PICTURE ALL THE ADULTS EXCEPT THE VENALLY MANIPULATIVE BUSINESSMAN ARE NOT ONLY WELLMEANING THEY SEEM TO HAVE UNDERGONE YEARS OF TRAINING IN CHILD PSYCHOLOGY I THINK THIS IS A CASE IN WHICH SINCERITY INTERFERED WITH ARTISTRY READING THE DIRECTOR'S COMMENTS ABOUT HIS FILM I REALIZED THAT THIS PERVASIVE NICENESS AND EARNESTNESS WAS INTENDED TO MAKE A POINT THE MAJOR THEME OF THE MOVIE IS SIMPLY PUT FAMILY SAID MR WINCER JESSE NEEDS A FAMILY AND WILLY NEEDS A FAMILY THIS IS SOMETHING THAT CUTS ACROSS BARRIERS OF AGE AND CULTURE AND OVER SPECIES WE ALL NEED FAMILY MR WINCER HASN'T LEFT HIS HUMAN PERFORMERS MUCH ROOM TO MANEUVER BETWEEN NICE AND EARNEST HOWEVER TWO OF THE ADULTS AUGUST SCHELLENBERG AND MICHAEL MADSEN MANAGE A COUPLE OF SLY MOMENTS WHEN THEIR CHARACTERS LET JESSE SPARK THEIR OWN YOUTHFUL REBELLIOUSNESS EARNESTNESS BECOMES JASON JAMES RICHTER THE PRETTY LITTLE BOY WHO PLAYS JESSE KEIKO THE WHALE WHO PLAYS WILLY IS A NATURAL SOMETIMES ALL AN ACTOR NEEDS TO BE A STAR OR AT LEAST TO SEEM LIKE ONE IS THE RIGHT BODY PART THOMAS IAN NICHOLAS THE YOUNG STAR OF ROOKIE OF THE YEAR HAS JUST WHAT HE NEEDS TO PLAY A 12YEAROLD KID WHO ONE DAY WAKES UP WITH A PITCHING ARM THAT QUALIFIES HIM FOR THE MAJORS HE HAS A GREAT PAIR OF EYEBROWS THE CHARM OF THIS LITTLE PICTURE DEPENDS ON CARRYING OFF ONE IDEA WHAT WOULD HAPPEN IF A BROKEN ARM HEALED IN A WAY TO TURN AN UNATHLETIC BOY INTO A SUPERSTAR PITCHER DIRECTOR DANIEL STERN ACTUALLY DOES CARRY IT OFF IN A MODEST ENTERTAINING WAY THOUGH THIS IS HIS FIRST FEATURE FILM HE DIRECTED 10 EPISODES OF THE WONDER YEARS THE TELEVISION SHOW ABOUT A BOY'S ADOLESCENCE IN THE 1960S WHICH WAS NARRATED BY MR STERN HE HAS STAGED THIS MOVIE A LITTLE BIT LIKE AN EXTENDED WONDER YEARS EPISODE IT HAS THE SAME CLEVER MIX OF NOSTALGIA AND MISCHIEF ROOKIE OF THE YEAR ISN'T DEEP WHICH FOR A BASEBALL PICTURE COMES AS A RELIEF MR STERN HAS A BREEZY STYLE AND A SWEET AFFECTION FOR THE CHICAGO CUBS OF COURSE NONE OF IT WOULD WORK IF YOUNG MR NICHOLAS DIDN'T HAVE THOSE EYEBROWS HE KEEPS THEM ARCHED THROUGH MOST OF THE MOVIE LETTING US KNOW THAT EVERYTHING THAT'S HAPPENING TO HIM IS JUST INCREDIBLE VIDEO TIP THE IDEA OF THE INTERSPECIES FAMILY CERTAINLY DIDN'T OCCUR TO JOHN HUSTON WHEN HE ADAPTED HERMAN MELVILLE'S MOBY DICK FOR THE MOVIES IN 1956 BACK IN THE DAYS WHEN IT WAS SOCIALLY PERMISSIBLE TO THINK OF A WHALE AS A MENACE IT IS AN EXCITING FILM FULL OF IMAGINATIVE TOUCHES AND THRILLING MOMENTS ORSON WELLES READING THE SERMON ABOUT JONAH GREGORY PECK IS A STIFF CAPTAIN AHAB BUT HE IS POWERFUL ANYWAY YOU CAN SEE THE DEMONS CHASING HIM 9307150098 930715 MONEY FUND YIELDS WERE MIXED IN WEEK A WALL STREET JOURNAL NEWS ROUNDUP YIELDS ON TAXABLE MONEY MARKET MUTUAL FUNDS ROSE SLIGHTLY IN THE LATEST WEEK WHILE YIELDS ON TAXFREE FUNDS HIT NEW LOWS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS INCHED UP TO 268 FROM 267 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER BUT THE AVERAGE TAXFREE SEVENDAY COMPOUND YIELD FELL TO 159 FROM 178 COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST TAXFREE YIELD WHICH IS THE LOWEST SINCE THE NEWSLETTER BEGAN TRACKING TAXFREE FUNDS IN 1979 IS EQUIVALENT TO A TAXABLE 221 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 230 FOR SOMEONE PAYING 31 IN TAXES WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE RECENT DECLINE IN TAXFREE YIELDS TO TEMPORARY SEASONAL FACTORS HEAVY EARLY REDEMPTIONS OF TAXEXEMPT SECURITIES FILLED INVESTORS' POCKETS WITH CASH WHICH THEY PARKED IN TAXFREE FUNDS MEANWHILE MANY MUNICIPALITIES WERE CLOSING THEIR FISCAL YEARS AND UNABLE TO ISSUE NEW SECURITIES THE RESULTING SUPPLYDEMAND PRESSURES PUSHED UP PRICES AND PULLED DOWN YIELDS MR FRANK SAID ASSETS OF 325 TAXEXEMPT FUNDS GREW 140 BILLION TO 10269 BILLION ACCORDING TO MONEY FUND REPORT THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 63 DAYS ASSETS OF 603 TAXABLE FUNDS GREW 472 BILLION TO 47705 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ADDED 504 BILLION TO MONEY FUNDS WHILE INDIVIDUAL INVESTORS TOOK OUT 3237 MILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 61 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS CREPT UP TO 264 FROM 263 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 263 WHILE THE AVERAGE 30DAY COMPOUND YIELD EDGED UP TO 267 FROM 266 9307150097 930715 LEISURE & ARTS TV MR BELL AND THE AGE OF INVENTION HEIDI TRANSFORMED BY DOROTHY RABINOWITZ THIS ACCOUNT OF ALEXANDER GRAHAM BELL'S REMARKABLE LIFE STARRING JOHN BACH WHO IS HIGHLY SATISFACTORY AS THE INVENTOR IS FOUR HOURS LONG AND THOSE HOURS ARE GIVE OR TAKE A FEW DEAD SPOTS WELLSPENT IF FOR NOTHING ELSE THIS PRODUCTION IS WORTH WATCHING FOR ITS PERIOD ATMOSPHERE PARTICULARLY ITS EVOCATION OF THE AGE OF INVENTION AND OF 19THCENTURY OPTIMISM BELL WAS THE CHILD OF A DEAF MOTHER WHO DOTED ON HIM AND A FATHER WHO ENCOURAGED HIM IN THE BELIEF THAT LIFE HELD NO LIMITATIONS FOR THOSE WITH THE WILL TO SUCCEED THE YOUNG BELL AS PORTRAYED HERE SHOWS THE POWER OF THAT INSTILLED CREDO AT WORK FIRST IN HIS EFFORTS AS A TEACHER OF THE DEAF AND SOON THEREAFTER AS THE INVENTOR OF THE TELEPHONE THIS MOVIE BIO MAY HAVE ALL THE STANDARD TRAPPINGS OF THE GENRE BUT IT IS SIGNIFICANTLY BETTER THAN STANDARD NEVERTHELESS THAT IS IN NO SMALL WAY DUE TO THE PERFORMANCES BY BRENDA FRICKER AND IAN BANNEN AS BELL'S PARENTS AND ESPECIALLY THE ONE BY VANESSA VAUGHAN AS THE CHARMER THE INVENTOR MARRIES THIS MINISERIES BASED ON JOHANNA SPYRI'S CLASSIC NOVEL 1881 OF AN ORPHANED CHILD WHO LONGS FOR HER LOST HOME IN THE ALPS REVOLVES AROUND A LESS JOLLY AND RATHER TOUGHER WAIF THAN THE ONE THE WORLD HAS COME TO ASSOCIATE WITH THIS TALE THIS HEIDI IS AS THE PRODUCERS NOTE MORE COMPLICATED THAN THE ONE PORTRAYED BY SHIRLEY TEMPLE IN THE 1937 FILM BE PREPARED THEN FOR A HEIDI WELLPLAYED BY NOLEY THORNTON WITH A TRAGIC SENSE OF LIFE THAT SHOULDN'T SPOIL THE FUN OF THIS SERIES WHICH PROFITS MIGHTILY FROM THE PRESENCE OF JASON ROBARDS AS THE EMBITTERED GRANDFATHER PATRICIA NEAL AS A BLIND GRANDMOTHER AND THE GLEAMING ALPS SETTINGS THE FIRST THING TO SAY ABOUT THIS EXTRAORDINARY FRONTLINE DOCUMENTARY IS THAT IT IS LIKELY TO LEAVE EVEN THE MOST PLACID AUDIENCE SHAKEN ITS REVELATIONS FURTHERMORE AREN'T LIKELY TO ENHANCE FAITH IN THE JURY SYSTEM OR AT LEAST IN THE PARTICULAR JURY THAT OCCUPIES SO CENTRAL A ROLE IN THIS DEVASTATING STUDY IN 1989 THE OWNERS OF THE LITTLE RASCALS DAYCARE CENTER IN EDENTON NC WERE CHARGED WITH WHOLESALE SEXUAL ABUSE OF CHILDREN AND AS IS THE NORM IN THESE CASES THE ACCUSERS MULTIPLIED FROM ONE TO 29 THE NUMBER OF THE ACCUSED TEACHERS AND TOWNSPEOPLE PROLIFERATED IN TURN AS DID THE FANCIFUL ABUSE CHARGES ELICITED BY EAGER THERAPISTS THIS IS FILMMAKER OFRA BIKEL'S HARROWING ACCOUNT OF THE TRIAL THAT ENDED WITH SCHOOL OWNER BOB KELLY GIVEN 12 CONSECUTIVE LIFE SENTENCES WHAT WENT ON IN THIS PROSECUTION HAS TO BE SEEN TO BE BELIEVED AND THE FILM MAKES IT POSSIBLE TO DO JUST THAT THE ACCUSING CHILDREN TOLD CLEARLY INVENTED NOT TO SAY GROTESQUE STORIES OF BABY KILLINGS SHARKS DROWNINGS YET THERE WERE JURORS AND ONE APPEARS HERE WHO BELIEVED EVERY WORD EVEN MORE STUNNING AND IN THEIR TARDY WAY COURAGEOUS ARE THE INTERVIEWS WITH JURORS WHO COME FORWARD NOW TO TELL HOW THEY HAD NO BELIEF IN OR EVIDENCE OF KELLY'S GUILT YET THEY TESTIFY IN ANGUISH THEY VOTED FOR CONVICTION HOW AND WHY THEY DID SO IS A LARGE STORY ONE THAT HAS RARELY IF EVER BEEN TRANSMITTED WITH SUCH APPALLING FRANKNESS AT THE CORE OF THAT LARGE STORY ARE OF COURSE THE GULLIBILITY AND ZEALOTRY THAT LED TO THE INDICTMENTS AND TRIALS WHICH THIS TWOPART WORK CHRONICLES WITH EQUAL BRILLIANCE GREGORY HARRISON PLAYS AN OUTOFWORK ACTOR SHORT ON FUNDS WHO ONE DAY FINDS 10 MILLION MYSTERIOUSLY ADDED TO HIS BANK ACCOUNT HE ALSO FINDS HIMSELF ENMESHED IN AN IDYLLIC ROMANCE WITH THE BEAUTY WHO MATERIALIZES FROM NOWHERE RIGHT ABOUT THE SAME TIME AS THE MONEY CONNOISSEURS OF THE TV MOVIE WILL RECOGNIZE HERE ALL THE SIGNS OF A SNAKE IN EDEN OBVIOUS AS IT MAY BE THE FILM HAS ITS CHARMS AND A MILD EDGE OF ACTUAL HUMOR ONE EARLY SCENE HAS THE HERO SCOTT AN HONEST CITIZEN TILL HIS BEGUILEMENT RACING AROUND THE BANK TRYING TO GET SOMEONE TO PAY ATTENTION TO THE FACT THAT THERE IS A LOT MORE MONEY IN HIS ACCOUNT THAN THERE SHOULD BE A MATRON HE MISTAKES FOR A BANK EMPLOYEE VENOMOUSLY INFORMS SCOTT THAT HE SHOULD SHUT UP AND WISH FOR SOME BRAINS BY THE STANDARD OF USA NETWORK MOVIES THIS FILM IS PRACTICALLY HIGH ART BY ANY OTHER STANDARD THIS IS A TRIFLE BUT AN ENGAGING ONE 9307150096 930715 MORE BAD NEWS ABOUT DEATH AND TAXES BY GREGORY F JENNER AS THE HOUSE AND SENATE CONFEREES IRON OUT THE DIFFERENCES IN THEIR VERSIONS OF PRESIDENT CLINTON'S DEFICITREDUCTION PACKAGE VIRTUALLY NO ATTENTION IS BEING PAID TO AN UNFAIR AND POTENTIALLY UNCONSTITUTIONAL ASPECT OF THE PACKAGE'S ESTATE TAX RATE INCREASE THE ESTATES OF CERTAIN INDIVIDUALS WHO HAVE DIED SINCE JAN 1 FACE HIGHER TAXES EVEN THOUGH THE TAX RATE INCREASE WAS NOT PART OF THE LAW ON THE DATE THEY PASSED AWAY THE ESTATE TAX IS AN EXCISE TAX IMPOSED ON THE RIGHT TO TRANSFER PROPERTY AT THE TIME OF DEATH IF THIS PROVISION IS ENACTED IT WILL BE THE FIRST TIME IN THE 77YEAR HISTORY OF THE ESTATE TAX THAT THE RATES HAVE BEEN INCREASED RETROACTIVELY CONTRARY TO POPULAR OPINION THE ESTATE TAX DOES NOT APPLY ONLY TO THE VERY WEALTHY UNDER CURRENT LAW THE TAX BEGINS TO APPLY FOR TAXABLE ESTATES VALUED AT 600000 AND ABOVE THUS WHERE THE DECEDENT HAS NO SURVIVING SPOUSE AND THUS NO MARITAL DEDUCTION THE OWNERSHIP OF A FAIRLY DECENT HOME A COUPLE OF LIFE INSURANCE POLICIES AND A MODEST AMOUNT OF SAVINGS WILL LIKELY TRIGGER THE TAX ADVOCATES FOR SMALL BUSINESS HAVE LONG ARGUED THAT THE IMPOSITION OF THE ESTATE TAX BEGINNING AT 600000 OF ASSETS IS POTENTIALLY RUINOUS TO A SMALL FAMILYOWNED OPERATION BUT THE ISSUE RAISED BY THE RETROACTIVE INCREASE GOES BEYOND THE APPROPRIATE LEVEL AND THRESHOLD OF THE TAX ESTATES WITH LESS THAN 25 MILLION IN ASSETS WILL NOT BE AFFECTED BY THE RATE INCREASES RATHER THE QUESTION IS ONE OF FAIRNESS IS IT APPROPRIATE FOR CONGRESS TO INCREASE THE TAX ON THE ESTATE OF AN INDIVIDUAL AFTER THAT PERSON IS ALREADY DECEASED EVEN TO THE MOST FERVENT SUPPORTER OF WEALTH REDISTRIBUTION THERE IS SOMETHING ABOUT A RETROACTIVE INCREASE THAT IS JUST NOT RIGHT IN MANY CASES THE ASSETS THAT MAKE UP THE ESTATE ARE NOT THE VAST DYNASTIES THAT PEOPLE EXPECT TO BE SUBJECT TO THE ESTATE TAX RATHER THEY ARE BUSINESSES THAT THE DECEDENT AND HIS SPOUSE BUILT OVER THE YEARS THROUGH HARD WORK AND THE REINVESTMENT OF PROFITS FOR EXAMPLE A MIDSIZE FARM OF 3000 ACRES IN IOWA WHERE FARMLAND IS CURRENTLY VALUED AT APPROXIMATELY 2500 AN ACRE WOULD BE VALUED AT 75 MILLION PLUS THE VALUE OF THE EQUIPMENT AN ESTATE CONSISTING PRIMARILY OF SUCH A FARM WOULD OWE 250000 IN ADDITIONAL TAXES BECAUSE OF A 5 RETROACTIVE INCREASE THE LIKELY OUTCOME IS THAT THE FARM WOULD BE SOLD OFF TO PAY THE TAXES THE RESULT IS EVEN MORE EGREGIOUS IF THE TRANSFER IS SUBJECT TO THE GENERATION SKIPPING TRANSFER GST TAX THE GST TAX APPLIES TO THE SAME PROPERTY OVER AND ABOVE THE ESTATE TAX WHEN THE PROPERTY IS LEFT FOR EXAMPLE BY GRANDPARENTS TO GRANDCHILDREN THE GST TAX RATE EQUALS THE MAXIMUM ESTATE TAX RATE THUS FOR PEOPLE LEAVING PROPERTY TO GRANDCHILDREN THE RETROACTIVE INCREASE WOULD BE 10 INSTEAD OF 5 ON TOP OF THE CURRENT HIGH RATES HERE THE EXAMPLE MIGHT BE SAY A SMALL PRINTING PLANT IN WASHINGTON STATE THAT THE DECEDENT AND HER HUSBAND STARTED FROM SCRATCH AND THAT EVENTUALLY GREW TO A 20 MILLION BUSINESS IF THE DECEDENT LEFT THE PLANT EQUALLY TO TWO GRANDCHILDREN THE TOTAL TAX ESTATE AND GST WOULD BE APPROXIMATELY 15 MILLION AN EFFECTIVE RATE OF 75 FOR THOSE HEIRS FACED WITH SELLING OFF THE FAMILY BUSINESS IN ORDER TO PAY ESTATE AND GST TAXES THE PROCESS OF DISPOSING OF A LIFETIME OF WORK TAKES A TREMENDOUS AMOUNT OF PLANNING THESE TAXES MUST BE PAID WITHIN NINE MONTHS OF THE DECEDENT'S DEATH THUS THE PLANNING DECISIONS ARE MADE WELL IN ADVANCE SINCE IT OFTEN TAKES TIME TO SELL OFF THE FAMILY BUSINESS FOR DECEDENTS DYING AFTER JAN 1 OF THIS YEAR MANY OF THESE DECISIONS HAVE ALREADY BEEN MADE AND IMPLEMENTED OFTEN AT SIGNIFICANT COST TO THE ESTATE IS IT FAIR FOR CONGRESS TO RUIN THESE PLANNING DECISIONS BY IMPOSING A HIGHER TAX RATE RETROACTIVELY BEYOND THE QUESTION OF FAIRNESS IS ONE OF CONSTITUTIONALITY MANY TAX EXPERTS BELIEVE THAT A RETROACTIVE INCREASE IN THE ESTATE TAX RATES WOULD VIOLATE THE DUE PROCESS CLAUSE OF THE CONSTITUTION UNLIKE INCOME TAX RATES WHICH APPLY TO INCOME EARNED DURING A CERTAIN PERIOD ESTATE TAX RATES APPLY TO ASSETS OWNED AT A PARTICULAR MOMENT IN TIME THE DATE OF DEATH WHERE THE TAXRATE INCREASE COULD NOT HAVE BEEN ANTICIPATED IN THIS CASE BEFORE THE PRESIDENT'S STATE OF THE UNION ADDRESS ON FEB 17 AT THE EARLIEST THERE IS A SERIOUS QUESTION WHETHER CONGRESS HAS THE POWER TO IMPOSE A RETROACTIVE CHANGE IN THE RATES THE FAIREST DECISION WOULD BE TO APPLY THE TAX RATE INCREASE PROSPECTIVELY ONLYBEGINNING ON THE DATE THE BILL IS SIGNED BY THE PRESIDENT MOST MEMBERS OF CONGRESS WOULD AGREE THAT INCREASING THE ESTATE TAX RATE RETROACTIVELY IS UNFAIR BUT TO CANCEL OUT THE RETROACTIVE PART OF THE TAX WOULD REDUCE BY 237 MILLION THE REVENUE THAT IT WOULD RAISE AND THAT LOSS WOULD HAVE TO BE MADE UP SOMEWHERE ELSE TO MEET THE PRESIDENT'S DEFICITREDUCTION TARGET ONCE AGAIN CONGRESS IS FACED WITH THE CHOICE OF GOOD POLICY OR MORE REVENUE IN THE PAST CONGRESS HAS USUALLY MADE THE RIGHT CHOICE WHEN CONFRONTED WITH THIS DILEMMA FOR THE PAST 77 YEARS IT HAS HONORED A TRADITION OF PROSPECTIVE ONLY INCREASES IN THE ESTATE TAX WITH THE SERIOUS QUESTIONS ABOUT FAIRNESS AND CONSTITUTIONALITY THAT A RETROACTIVE CHANGE WOULD RAISE THERE IS NO GOOD REASON TO CHANGE THAT PATTERN NOW MERELY FOR A ONETIME REVENUE INCREASE MR JENNER A WASHINGTON ATTORNEY IS A FORMER TAX COUNSEL OF THE SENATE FINANCE COMMITTEE 9307150094 930715 POLITICS & POLICY IN BUDGET DEBATE GOP WAR CRY OF NO NEW TAXES APPEARS TO HAVE BROADENED TO NO NEW ANYTHING BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN DRAFTING ALTERNATIVES TO PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM CONGRESSIONAL REPUBLICANS LEFT OUT NOT ONLY TAXES BUT SOMETHING AMERICANS HAVE VERY MUCH WANTED LATELY CHANGE CONSIDER THE PROPOSAL ADVANCED BY THE NATION'S TOP REPUBLICAN SENATE MINORITY LEADER ROBERT DOLE IT OFFERS NO GENERAL TAX CUTS OR SPECIAL BUSINESS INCENTIVES TO KICKSTART THE SLUGGISH ECONOMY IMMEDIATELY IT REJECTS THE ADMINISTRATION'S NEW SPENDING PROPOSALS TO RETOOL THE ECONOMY IN THE LONG RUN IT WOULD CUT THE BUDGET DEFICIT BUT NOT AS MUCH AS THE 500 BILLION THAT MR CLINTON CALLS FOR CONVENTIONAL WISDOM HAS IT THAT THE CLINTON PLAN IS A WINNER FOR REPUBLICANS BEARING NO RESPONSIBILITY FOR GOVERNING THEY CAN STAND ON THE SIDELINES WATCH THE DEMOCRATS SQUIRM AND BENEFIT AT THE POLLS IN 1994 IT'S THEIR BABY MR DOLE SAYS OF THE DEMOCRATIC PLAN ADDING EVERY DAY YOU GET A LITTLE CLOSER TO NEXT NOVEMBER BUT IT WAS JUST LAST NOVEMBER THAT VOTERS LOUDLY REJECTED A RECIPE QUITE SIMILAR TO MR DOLE'S AS GEORGE BUSH CAN READILY ATTEST INDEED MR DOLE'S PLAN UNDERSCORES THE POTENTIAL PITFALLS FOR REPUBLICANS IN ALTERNATIVES GEARED MORE TOWARD EMBARRASSING THE PRESIDENT THAN ADVANCING A DISTINCTIVE NEW AGENDA PEOPLE WANT TO SEE CHANGE SAYS CONSERVATIVE ANALYST WILLIAM KRISTOL WHO LEARNED THE LESSON HIMSELF IN 1992 AS CHIEF OF STAFF TO VICE PRESIDENT QUAYLE THE GREAT RISK OF CURRENT GOP PROPOSALS HE ADDS IS YOU END UP ALMOST BY DEFINITION SUPPORTING THE STATUS QUO CLEARLY BY HAMMERING AWAY AT BROAD PHILOSOPHIC DIFFERENCES BETWEEN THE TWO PARTIES THE REPUBLICAN PROPOSALS HAVE PLACED PRESSURE ON THE NEGOTIATIONS THAT BEGIN THIS WEEK OVER MR CLINTON'S PROGRAM AND HAVE HELPED RESTORE THE PARTISAN EDGE TO THE TAX ISSUE THAT GEORGE BUSH'S PRESIDENCY BADLY BLURRED BUT DEMOCRATS COUNTER THAT THE GOP PLANS HAVE THEIR OWN VULNERABILITIES ESPECIALLY IN THEIR OPPOSITION TO MR CLINTON'S PROPOSED TAX INCREASES ON THE AFFLUENT THEY'RE VERY BIG PEOPLE WHEN IT COMES TO BEATING UP ON WORKING WOMEN AND MINORITIES SAYS CLINTON STRATEGIST JAMES CARVILLE BUT WHEN IT COMES TIME TO TAKE ON THE DEFICIT OR MILLIONAIRES THEY SHIRK BACK IT'S COWARDLY THE GOP PLAN THAT HAS EARNED THE BEST REVIEWS IS THE HOUSE PLAN DRAFTED BY REP JOHN KASICH OF OHIO USING SPENDING CUTS ALONE MR KASICH'S PLAN WOULD HAVE REDUCED THE DEFICIT BY ROUGHLY 445 BILLION OVER FIVE YEARS WHILE MEETING THE PRESIDENT'S CHALLENGE THAT ADVOCATES OF ADDITIONAL CUTS BE SPECIFIC HE ITEMIZED HOTBUTTON PROPOSALS TO CHARGE MEDICARE BENEFICIARIES MORE FOR SERVICES AND TARGETED A BROAD RANGE OF SPENDING PROGRAMS INCLUDING FEDERAL CIVILIAN PAY MILITARY RETIREMENT US SUBSIDIES TO THE WORLD BANK SUPPORT FOR MASS TRANSIT AND NEW OIL PURCHASES TO FILL THE STRATEGIC PETROLEUM RESERVE HE WOULD HAVE ALSO ABOLISHED THE COMMERCE DEPARTMENT BY 1998 THIS EFFORT WAS DONE TO DEMONSTRATE THAT YOU CAN REDUCE FEDERAL SPENDING WITHOUT TAX INCREASES MR KASICH SAYS BUT IT ALSO DEMONSTRATED THAT DEFICIT REDUCTION IS MORE POPULAR IN GENERAL THAN IN DETAIL SOME 40 OF HIS HOUSE GOP COLLEAGUES VOTED AGAINST IT A FAR HIGHER RATE OF DEFECTION THAN THE PRESIDENT SUFFERED IN ASSEMBLING HIS ALLDEMOCRATIC 219VOTE HOUSE MAJORITY IN CONTRAST WITH MR KASICH'S PLAN MR DOLE GLOSSED OVER DETAILS AND MANAGED TO HOLD ALL BUT ONE REPUBLICAN SENATOR IN LINE BEHIND HIS PLAN TO CUT THE DEFICIT BY ABOUT 410 BILLION OVER FIVE YEARS THE ONLY SPENDING CUTS THAT SENATE REPUBLICANS ITEMIZED WERE THOSE CONTAINED IN THE DEMOCRATIC PLAN STILL LAMENTING THE FALLOUT REPUBLICANS SUFFERED IN 1986 AFTER PUSHING STIFF DEFICITREDUCTION MEDICINE THE MINORITY LEADER RELIED ON NUMERICAL SPENDING CAPS TO SAVE MORE MONEY BEYOND THAT HE DID SUGGEST TO GOP COLLEAGUES THAT A REPUBLICAN ALTERNATIVE MIGHT INCLUDE A SMALL DOSE OF TAX INCREASES SPECIFICALLY A 10 SURTAX ON INCOMES OF 1 MILLION OR MORE BUT THE REPUBLICANS ULTIMATELY SCUTTLED THE IDEA AS NOT WORTH THE TROUBLE SUCH POSTURING LEAVES SOME BUDGETWATCHERS DISAPPOINTED IN BOTH PARTIES THERE ARE TWO ELEMENTS MISSING IN THE BUDGET DEBATE THIS YEAR SAYS CAROL COX WAIT DIRECTOR ON THE CENTRIST COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET ONE IS CANDOR AND THE OTHER IS BIPARTISANSHIP SHE FAULTS REPUBLICANS FOR DENYING THE NEED FOR TAX INCREASES AND DEMOCRATS FOR SUGGESTING THAT DEEP CUTS IN FEDERAL BENEFIT PROGRAMS OR ENTITLEMENTS CAN WAIT FOR HEALTHCARE REFORM RATHER THAN THE OTHER WAY AROUND THE ADMINISTRATION AND REPUBLICAN APPROACHES HAVE SOME THINGS IN COMMON SUCH AS EXTENDING THE SPENDING CAPS DESIGNED IN THE 1990 BUDGET DEAL THE GOP PLANS THOUGH WOULD ABANDON MR CLINTON'S PROPOSED INVESTMENT SPENDING THE REPUBLICANS WOULD ALSO GO FURTHER IN CURBING ENTITLEMENTS WHICH EVERYONE AGREES REPRESENT THE FOREMOST ENGINE OF DEFICIT SPENDING MR KASICH PROPOSED CUTTING 73 BILLION FROM MEDICARE OVER FIVE YEARS COMPARED WITH THE 50 BILLION THAT HOUSE DEMOCRATS HAVE APPROVED SENATE REPUBLICANS WOULD SAVE EVEN MORE BUT BEYOND ECHOING THE ENTITLEMENT SAVINGS ADVANCED BY SENATE DEMOCRATS THEY NEVER SPELLED OUT HOW INSTEAD THE GOP PLAN WOULD REALIZE BUSH ADMINISTRATION BUDGET DIRECTOR RICHARD DARMAN'S CHERISHED GOAL OF EXTENDING BUDGET CAPS TO ENTITLEMENTS AIMING TO SAVE 49 BILLION BEYOND THE ADMINISTRATION'S PROPOSAL BY CAPPING THEM AT CURRENT LEVELS ADJUSTED FOR POPULATION GROWTH INFLATION AND AN ADDITIONAL 1 CUSHION BEGINNING IN 1996 ADVOCATES OF ENTITLEMENT CAPS SUCH AS REPUBLICAN SEN PETE DOMENICI OF NEW MEXICO SAY THEY WOULD GOAD CONGRESS TO REFORM MEDICARE TO PRODUCE THE NEEDED SAVINGS BUT THE CAPS ALSO HELPED THE SENATE GOP PLAN DODGE THE POLITICAL PROBLEM ENCOUNTERED BY MR KASICH IT DIDN'T FORCE ANYBODY INTO VERY MANY HARD CHOICES RIGHT NOW SAYS FORMER GOP REP BILL FRENZEL NOW A BUDGET ANALYST AT THE BROOKINGS INSTITUTION OF COURSE THE UNSPOKEN DANGER IN THE DEFICITREDUCTION DEBATE IS THAT PERSISTENT ECONOMIC STAGNATION BARES THE EMPTINESS OF BOTH PARTIES' POLICIES IN THEIR QUEST TO STEM THE RED INK DEMOCRATS AND REPUBLICANS ALIKE HAVE LARGELY ABANDONED TALK OF PROVIDING MUCH STIMULUS TO THE ECONOMY MR KRISTOL SAYS REPUBLICANS MUST TAKE A BOLDER AND MORE AGGRESSIVE STANCE TO RESTRUCTURING GOVERNMENT AND THE TAX SYSTEM HEADING INTO 1994 FOR MR CLINTON'S PART THE SLUMPING ECONOMY MIGHT EVEN JUSTIFY ABANDONING AUSTERITY AND REVIVING ONE OF HIS POPULAR CAMPAIGN PROMISES NEXT YEAR HE SHOULD ASK FOR A TAX CUT FOR THE MIDDLE CLASS SAYS SALOMON BROTHERS EXECUTIVE STEPHEN BELL A FORMER AIDE TO SEN DOMENICI AND A DEFICIT HAWK WHO CONTENDS THE ECONOMY BADLY NEEDS A KICKSTART REPUBLICANS MR BELL ADDS WON'T KNOW WHAT TO DO 9307150092 930715 WHO'S NEWS COPLEY PROPERTIES PICKS WHEELER AS PRESIDENT CHIEF AND A DIRECTOR BOSTON STEVEN E WHEELER 46 YEARS OLD WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF COPLEY PROPERTIES INC AS PRESIDENT MR WHEELER SUCCEEDS STEPHEN H ANTHONY 55 WHO WILL REMAIN ON THE BOARD UNTIL HIS RETIREMENT IN 1994 THE POSITION OF CHIEF EXECUTIVE OFFICER IS NEW AS A DIRECTOR MR WHEELER EXPANDS THE BOARD TO SEVEN A SPOKESMAN FOR THE REAL ESTATE INVESTMENT TRUST SAID SENIOR MANAGERS OF THE COMPANY INCLUDING MR ANTHONY DECIDED THAT IT WAS IN THE COMPANY'S BEST INTERESTS TO BRING IN OUTSIDERS IN A MANAGEMENT CHANGE MR ANTHONY SAID HE PREVIOUSLY PLANNED TO RETIRE NEXT YEAR FOR A LONG TIME WITH THE REAL ESTATE MARKETS' ENTERING A NEW PHASE OF GROWTH IT SEEMED LIKE A GOOD TIME FOR SOMEONE WITH MR WHEELER'S EXPERIENCE TO MANAGE THE REAL ESTATE INVESTMENT TRUST HE ADDED THIS IS NOT A SHAKEUP MR WHEELER WHO WAS NAMED A MANAGING DIRECTOR OF THE COMPANY'S COPLEY REAL ESTATE ADVISORS INC LAST MONTH RETAINS THAT POSITION PRIOR TO HIS JUNE APPOINTMENT MR WHEELER WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HANCOCK REALTY INVESTORS A UNIT OF JOHN HANCOCK MUTUAL LIFE INSURANCE CO BOSTON THE COMPANY ALSO NAMED MARY L LENTZ 39 TO THE NEW POSITION OF VICE PRESIDENT AND CHIEF OPERATING OFFICER SHE WAS PREVIOUSLY DIRECTOR OF LEASING AT CHIOFARO CO A BOSTON REAL ESTATE DEVELOPER 9307150091 930715 WORLD MARKETS AMID MIXED SHOWING WORLDWIDE PRICES FINISH FLAT IN TOKYO DOWN IN LONDON UP IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO PRICES ENDED NARROWLY MIXED WEDNESDAY AS BUYERS AND SELLERS OFFSET EACH OTHER IN CALM TRADING LONDON EQUITIES FELL BUT WERE SAVED FROM SHARP DECLINES BY A LATE RECOVERY FRANKFURT STOCKS FINISHED SLIGHTLY HIGHER AFTER RETREATING FROM EARLY GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10704 UP 038 REFLECTING INCREASES IN ASIA/PACIFIC AMERICAN AND EUROPEAN MARKETS AIR FREIGHT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10698 UP 615 OR 61 WITH FEDERAL EXPRESS OF THE US POSTING A 14 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 14006 DOWN 231 OR 16 WITH ASHTON MINING OF AUSTRALIA SLIDING 5 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADVANCED 20042 POINTS TUESDAY FELL 4131 TO 2013911 ON THURSDAY THE NIKKEI ROSE 14362 POINTS TO CLOSE THE MORNING SESSION AT 2028273 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN FROM 3318 MILLION SHARES A DAY EARLIER GAINERS NARROWLY TOPPED LOSERS 495476 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH JUMPED 2163 POINTS TUESDAY SLIPPED 373 TO 163158 SOME INVESTORS CONTINUED TO LOOK FOR SELLING OPPORTUNITIES ABOVE 20000 ON THE NIKKEI BUT THIS WAS BALANCED BY OTHERS WHO BOUGHT POSITIONS ON EXPECTATIONS OF JAPANESE INTERESTRATE CUTS AND A FAVORABLE RESULT FOR BIG BUSINESS IN SUNDAY'S GENERAL ELECTION THE RATE SCENARIO PRODUCED STRONG GAINS FOR NONBANKING FINANCIAL ISSUES AND RAILWAY STOCKS THOUGH BANKS FELL ON PROFITTAKING FOLLOWING HEFTY RISES A DAY EARLIER INVESTORS' CONCERNS ABOUT JAPAN'S PARLIAMENTARY ELECTION WERE ASSUAGED BY PREDICTIONS THAT THE RULING LIBERAL DEMOCRATIC PARTY WILL MAINTAIN ITS CURRENT LEVEL OF SEATS IN THE POWERFUL LOWER HOUSE OF THE DIET THE NEW CONSERVATIVE PARTIES CHALLENGING THE LDP ARE EXPECTED TO PICK UP MOST OF THEIR SEATS FROM THE SOCIALISTS THIS EASED FEARS AMONG FOREIGN INVESTORS WHO WERE ON EDGE ABOUT AN LDP SETBACK IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 48 POINTS TO 28323 THE FT 30STOCK INDEX DROPPED 76 POINTS TO 22209 VOLUME WAS 6127 MILLION SHARES UP FROM 5924 MILLION SHARES A DAY EARLIER IN LONDON'S FINAL HOUR OF TRADING SOLID GAINS ON WALL STREET GAVE THE BOURSE A LIFT US INFLATION DATA FOR JUNE SHOWING THAT PRESSURES ON PRICES REMAINED MODEST IGNITED A RALLY IN LONDON PRICES UNTIL THEN THE FT100 HAD BEEN DOWN 10 POINTS AS INVESTORS IGNORED BRITISH INFLATION DATA THAT WAS SIMILARLY ENCOURAGING DESPITE THE LATE IMPROVEMENT LONDON MARKET SENTIMENT WAS NERVOUS AS SEVERAL SECTORS SAGGED FOOD RETAILERS MANUFACTURERS MEDIA COMPANIES AND CONSUMER GOODS PRODUCERS ALL WERE SOLD ON CONCERNS ABOUT THE TRADING OUTLOOK AND TOOBULLISH EARNINGS PREDICTIONS ANXIETY INCREASED BECAUSE WITH BRITISH INFLATION REMAINING UNDER CONTROL PRICE COMPETITION IN THE OVERALL RETAILING SECTOR IS ESCALATING SOME BROKERAGE FIRMS DOWNGRADED THEIR FORECASTS OF PROFITS FOR RETAILERS THEY CONSIDERED THE MOST VULNERABLE IN FRANKFURT THE DAX 30STOCK INDEX ROSE 439 POINTS TO 181155 BUT WAS UNABLE TO HOLD ON TO GAINS THAT TOOK THE BAROMETER TO A SESSION PEAK OF 182131 THE MARKET OPENED ON A BUOYANT NOTE AFTER HAVING ENDED ABOVE 1800 ON THE DAX THE PREVIOUS DAY BUT SHARES RETREATED ON A REPORT THAT THE GERMAN BUNDESBANK WON'T HOLD A NEWS CONFERENCE TODAY FOLLOWING ITS POLICYSETTING COUNCIL'S BIWEEKLY MEETING DIMINISHING HOPES THAT THE CENTRAL BANK WILL CUT INTEREST RATES THE BUNDESBANK EARLIER IN THE DAY LOWERED ITS MINIMUM ACCEPTED REPURCHASEAGREEMENT RATE TO 728 FROM 73 AND INJECTED ADDITIONAL LIQUIDITY INTO THE MONEY MARKET BUT THESE MOVES WEREN'T VIEWED AS DECISIVE ENOUGH TO SIGNAL A CUT IN KEY RATES TODAY STILL THE MARKET'S RISING TREND IN THE FACE OF PROFITTAKING WAS VIEWED AS A POSITIVE SIGN OF THE DAX STOCKS 18 ROSE AND 12 FELL THE EXCHANGE CONTINUED TO BUILD FUNDAMENTAL STRENGTH AS A GROWING NUMBER OF INTERNATIONAL FUND MANAGERS INCREASED THEIR WEIGHTINGS OF GERMAN SHARES IN THEIR PORTFOLIOS MARKING THE EXCEPTION TO EUROPEAN BOURSES' MIXED PERFORMANCE OVERALL MILAN SHARES RALLIED 13 IN ACTIVE TRADING AS A STRONG SHOWING BY TELECOMMUNICATIONS AND INSURANCE ISSUES BOOSTED SPIRITS FOREIGN BUYING OF TELECOMMUNICATIONS STOCKS CLIMBED FROM THE OPENING AS INVESTORS EXPECTED A SWEEPING RESTRUCTURING OF THAT ITALIAN SECTOR INVESTORS WERE ALSO PREOCCUPIED WITH ADJUSTING POSITIONS FOR THE END OF THE JULY TRADING CYCLE TODAY AND IN STOCKHOLM A TELECOMMUNICATIONS RALLY CONTINUED AND THE BANKING SECTOR REBOUNDED PUSHING THE MARKET HIGHER FOR THE SEVENTH CONSECUTIVE SESSION IN BRUSSELS THE MAIN INDEX SLIPPED MARKING THE FIRST LOSS IN SIX SESSIONS AS THE MARKET FINISHED MIXED FROM PROFITTAKING AFTER RECENT RECORDSETTING GAINS THOUGH SYDNEY TRADING WAS LACKLUSTER AS MANY INVESTORS CONSOLIDATED GAINS OF THE PAST FEW DAYS SHARE PRICES EDGED UP AGAIN MARKING A NEW SIXYEAR HIGH AMONG CORPORATE DEVELOPMENTS IN TOKYO KYOCERA RALLIED 60 YEN OR 1 TO 6000 YEN 5549 ON NEWS THAT ITS DDI AFFILIATE A PROVIDER OF DOMESTIC LONGDISTANCE PHONE SERVICE WILL LIST ON THE STOCK EXCHANGE SOON FOREIGN AND INSTITUTIONAL INVESTORS ALSO BOOSTED HOLDINGS OF KYOCERA A CERAMICS MICROCHIP PACKAGE MAKER BECAUSE OF RECOVERING DEMAND FOR SEMICONDUCTORS WORLDWIDE IN LONDON STOREHOUSE ENDED UNCHANGED AT 191 PENCE 286 THE RETAILER WHICH OWNS THE BHS AND MOTHERCARE CHAINS SAID AT THE ANNUAL MEETING THAT SALES IN THE YEAR THAT BEGAN MARCH 28 ARE AHEAD OF YEAREARLIER LEVELS THAT FISCAL FIRSTQUARTER PROFIT WAS AHEAD OF PLAN AND THAT IT EXPECTS A RISE IN EARNINGS FOR THE CURRENT YEAR LAST YEAR STOREHOUSE HAD PRETAX PROFIT OF 152 MILLION 228 MILLION AFTER A CHARGE OF 1314 MILLION RELATED TO ASSET SALES IN FRANKFURT DAIMLERBENZ CLIMBED 9 MARKS OR 14 TO 673 MARKS 39162 AND AEG ENDED UNCHANGED AT 161 DAIMLER AND ITS ELECTRONICS UNIT BOTH DENIED RECENT RUMORS THAT THE INDUSTRIAL GIANT MIGHT SELL THE UNPROFITABLE AEG ACQUIRED IN 1985 THE SPECULATION WAS LINKED TO AEG'S SEARCH FOR STRATEGIC ALLIANCES THAT HAS LED TO TALKS WITH POTENTIAL INTERNATIONAL PARTNERS IN THE ELECTRONICS INDUSTRY AEG CONFIRMED IT WAS CONTINUING TO HOLD TALKS WITH GROUPE SCHNEIDER OF FRANCE ABOUT COOPERATION IN TWO OF AEG'S LARGEST DIVISIONS AUTOMATION TECHNOLOGY AND POWER DISTRIBUTION 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 9307150090 930715 WHO'S NEWS ACTING DIRECTOR BECKER TO HEAD SEC DIVISION ON SECURITIES MARKETS WASHINGTON BRANDON BECKER WAS NAMED DIRECTOR OF MARKET REGULATION AT THE SECURITIES AND EXCHANGE COMMISSION THE DIVISION THAT OVERSEES SECURITIES MARKETS AND THE PROFESSIONALS WHO WORK IN THEM THE DIVISION ALSO OVERSEES THE MUNICIPAL SECURITIES RULEMAKING BOARD WHOSE REGULATION OF MUNICIPAL BOND ISSUERS AND UNDERWRITERS HAS BEEN IN THE SPOTLIGHT SINCE ALLEGATIONS OF ILLEGAL CAMPAIGN PAYMENTS AND OTHER IMPROPRIETIES AROSE IN CONNECTION WITH A 29 BILLION NEW JERSEY TURNPIKE BOND ISSUE MR BECKER 39 YEARS OLD HAD SERVED AS ACTING DIRECTOR OF THE DIVISION SINCE MIDMARCH WHEN WILLIAM H HEYMAN STEPPED DOWN EARLIER THIS WEEK SALOMON BROTHERS INC NAMED MR HEYMAN A MANAGING DIRECTOR AND HEAD OF ITS PRIVATEINVESTMENT DEPARTMENT MR BECKER WHO HAS BEEN WITH THE SEC SINCE 1978 WAS APPOINTED DIRECTOR BY ACTING SEC CHAIRMAN MARY L SCHAPIRO IN A STATEMENT SHE PRAISED MR BECKER FOR WORKING TIRELESSLY ON THE COMMISSION'S BEHALF FOR MORE THAN A DOZEN YEARS HANDLING SOME OF ITS MOST COMPLEX AND IMPORTANT INITIATIVES 9307150089 930715 BUSINESS BRIEFS MORRISON KNUDSEN CORP HAS BEEN AWARDED A 10 MILLION CONTRACT TO CONSTRUCT A MANUFACTURING FACILITY FOR ANTILOCK BRAKE SYSTEMS IN HEERLEN THE NETHERLANDS FOR KELSEYHAYES INC NYNEX CORP COMPLETED THE SALE OF ITS BRITISH BANKING SOFTWARE BUSINESS BIS GROUP LTD TO ACT GROUP PLC FOR ABOUT 140 MILLION AMERICAN TELEPHONE & TELEGRAPH CO SIGNED 200 MILLION IN CONTRACTS TO PROVIDE BEST WESTERN INTERNATIONAL INC WITH LONGDISTANCE SERVICES TO ITS HEADQUARTERS RESERVATIONS CENTERS AND HOTEL PROPERTIES INTERNATIONAL BUSINESS MACHINES CORP'S INTEGRATED SYSTEMS SOLUTIONS CORP UNIT SIGNED A 10YEAR PACT WORTH OVER 300 MILLION TO MANAGE THE COMPUTER SYSTEMS OF JACK ECKERD CORP RELIANCE GROUP HOLDINGS INC COMPLETED THE PREVIOUSLY ANNOUNCED SALE OF ITS UNITED PACIFIC LIFE INSURANCE CO UNIT TO GENERAL ELECTRIC CO'S GE CAPITAL UNIT FOR ABOUT 550 MILLION 9307150088 930715 BUSINESS BRIEF COMPUSA INC RETAILER TO OPEN 30 STORES OVER NEXT YEAR TO REACH 78 COMPUSA INC CONTINUING ITS PUSH IN LARGEFORMAT COMPUTER RETAILING SAID IT PLANS TO OPEN 30 COMPUTER SUPERSTORES IN THE NEXT YEAR INCREASING THE NUMBER OF STORES TO 78 THE COMPANY SAID IT WILL OPEN FIVE OF THE NEW STORES THIS MONTH AND THAT IT WILL USE SOME OF THE PROCEEDS OF A RECENT 110 MILLION DEBT OFFERING TO FINANCE THE EXPANSION THE EXPANSION COMES AT A TIME WHEN MANY COMPUTER RETAILERS FACE FIERCE MARGIN PRESSURES DESPITE THAT CLIMATE ANALYSTS SAID COMPUSA'S LARGEFORMAT CONCEPT HAS ENABLED IT TO CONTINUE ITS AGGRESSIVE GROWTH STRATEGY HISTORY TELLS US IT'S IMPORTANT TO BE EARLY TO ESTABLISH DOMINANCE AND GARNER MARKET SHARE SAID DENNIS TELZROW AN ANALYST AT PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS FOR THE FISCAL YEAR ENDED JUNE 30 1992 THE DALLAS COMPUTER RETAILER POSTED NET INCOME OF 101 MILLION OR 69 CENTS A SHARE COMPARED WITH A LOSS OF 97 MILLION OR 158 A SHARE A YEAR EARLIER SALES IN THAT PERIOD JUMPED 52 TO 8271 MILLION 9307150087 930715 LAW LEGAL BEAT DUESPAYING GROUP IS OFFERING AD CAMPAIGN AND SEAL OF APPROVAL BY KATIA HETTER STAFF REPORTER OF THE WALL STREET JOURNAL JOHN BUCHANAN OF GRAND RAPIDS MICH IS ONE LAWYER WHO DOESN'T BEMOAN THE PERVASIVE NATIONAL RESENTMENT OF THE LEGAL PROFESSION INDEED HE HAS DEVISED A POWERFUL MARKETING CAMPAIGN THAT OPENLY EXPLOITS IT FIGURING THAT PEOPLE HAVE TO RETAIN LAWYERS FROM TIME TO TIME WHETHER THEY LIKE IT OR NOT MR BUCHANAN WANTS TO OFFER CONSUMERS A WAY TO PICK THE GOOD FROM THE BAD BY ESTABLISHING A SORT OF GOOD HOUSEKEEPING SEAL OF APPROVAL FOR ATTORNEYS WHO MEET HIS CRITERIA OF COMPETENCE AND INTEGRITY SMALL LAW FIRMS AROUND THE COUNTRY ARE COUGHING UP ANNUAL DUES OF AS MUCH AS 500 TO WIN THE IMPRIMATUR OF MR BUCHANAN'S VENTURE WHICH HE HAS DUBBED THE INTERNATIONAL SOCIETY OF PRIMERUS LAW FIRMS IN RETURN MEMBERS GET ACCESS TO A SLICK AD CAMPAIGN THAT PROMOTES LAWYERS AS GOOD CITIZENS AND PRIMERUS AS THE NAME A CLIENT CAN TRUST PRIMERUS ISN'T THE FIRST TIME LAWYERS HAVE BANDED TOGETHER TO DISSOCIATE THEMSELVES FROM THE MYTHIC HORDES OF BAD ATTORNEYS BUT BY OFFERING A CREATIVE AD CAMPAIGN MR BUCHANAN HAS ADDED A NEW AND VALUABLE TWIST FOR LAW FIRMS THAT OTHERWISE COULDN'T AFFORD SUCH PROMOTIONS FEES PAID TO THE NONPROFIT GROUP ARE USED TO CREATE THE PRIMERUS ADS WHICH GENERATE MORE BUSINESS FOR THE MEMBERS INCLUDING MR BUCHANAN'S LAW FIRM BUCHANAN & BOS SINCE PRIMERUS BEGAN THREE MONTHS AGO IT HAS GROWN TO INCLUDE ABOUT 20 MEMBER FIRMS MAINLY SMALL LAW FIRMS OF JUST TWO OR THREE ATTORNEYS OR SOLO PRACTITIONERS WITH A TOTAL OF ABOUT 100 INDIVIDUAL LAWYERS ONE PRIMERUS PRINT AD FOR INSTANCE IDENTIFIES PICTURES OF HITLER STALIN AND AYATOLLAH KHOMEINI AS THREE LEADERS WHO REALLY KNEW HOW TO STREAMLINE A LEGAL SYSTEM MAKING THE POINT THAT WHILE THE US SYSTEM MAY NOT BE THE MOST EFFICIENT IT IS STILL THE FAIREST EVER A BROCHURE WITH THE PRIMERUS LOGO DECLARES ON ITS COVER IT'S THE LAWYER'S EQUIVALENT OF THE HIPPOCRATIC OATH BY JOINING PRIMERUS THE FIRMS ARE EXPECTING THE SAME BOOST BUCHANAN & BOS ACHIEVED WHEN IT STARTED USING A PRECURSOR TO THE PRIMERUS APPROACH THE CIVILLITIGATION FIRM BEGAN RUNNING PROLAWYER ADS IN 1990 TO COUNTER VICE PRESIDENT DAN QUAYLE'S ATTACKS ON THE PROFESSION AND TO COMBAT TV IMAGES OF LAWYERS AS SNAKEOIL SALESMEN MR BUCHANAN SAYS THAT AFTER THE FIRM PUBLICIZED ITSELF THROUGH A PAMPHLET CALLED HOW TO JUDGE YOUR ATTORNEY AND ADS DEFENDING THE CIVIC VIRTUES OF THE LEGAL PROFESSION NEW BUSINESS STARTED POURING IN BUT MANY WOULDBE CLIENTS NEEDED REFERRALS TO LAWYERS SPECIALIZING IN REAL ESTATE DIVORCE BANKRUPTCY AND OTHER AREAS THAT THE 13LAWYER BUCHANAN & BOS FIRM DIDN'T HANDLE AT THE SAME TIME OTHER LAWYERS AND EVEN A STATE BAR ASSOCIATION WERE ASKING FOR PERMISSION TO USE THE ADS AFTER GETTING A POSITIVE RESPONSE TO THE ADS AT LAST YEAR'S AMERICAN BAR ASSOCIATION CONFERENCE MR BUCHANAN DECIDED TO FORMALIZE THE REFERRAL AND ADVERTISING ARRANGEMENT INCORPORATING PRIMERUS IN APRIL AND HIRING TWO STAFF MEMBERS PRIMERUS CURRENTLY HAS MEMBERS IN MICHIGAN WISCONSIN TEXAS AND CALIFORNIA AND IT ENVISIONS A HUB SYSTEM IN WHICH FIRMS ARE GROUPED TOGETHER BY REGION A HUB FIRM FOR EACH REGIONAL CHAPTER WOULD BRING IN ASSOCIATE FIRMS WITH DIFFERENT SPECIALTIES TO JOIN THE HUB FIRMS PAY 500 A YEAR AND ASSOCIATE FIRMS PAY 300 A YEAR PLUS 100 FOR EACH LAWYER MEMBERS ARE REQUIRED TO PAY ADDITIONAL FEES FOR THE ADS THAT ARE USED IN THEIR REGION THE MEMBER LAWYERS ALSO MUST ENGAGE IN COMMUNITY SERVICE ATTEND 30 HOURS OF CONTINUING LEGAL EDUCATION A YEAR HAVE A FEE STRUCTURE IN LINE WITH COMMUNITY PRICES AND ADHERE TO MORE FUZZY PRINCIPLES SUCH AS CIVILITY TO THE BENCH AND FELLOW MEMBERS OF THE BAR AND ABSOLUTE INTEGRITY IN ALL PROFESSIONAL CONDUCT THE HEAD OF MICHIGAN'S STATE BAR ASSOCIATION WAS SO IMPRESSED WITH PRIMERUS'S TV ADS THAT HIS LAW FIRM SIGNED UP TO BECOME A MEMBER PRIMERUS IS A GOOD VEHICLE FOR PUTTING FORTH SOME POSITIVE STATEMENTS ABOUT THE PROFESSION SAYS THE ASSOCIATION PRESIDENT GEORGE A GOOGASIAN OF THE BLOOMFIELD HILLS MICH LAW FIRM GOOGASIAN HOPKINS HOHAUSER & FORHAN SOME OTHER LAWYER GROUPS WHICH HAVE LONG STAKED OUT REGIONS OR PARTICULAR PRACTICES OF LAW AREN'T CONVINCED THAT PRIMERUS'S EFFORTS WILL STAND OUT LEON STEINBERG PRESIDENT OF COMMERCIAL LAW AFFILIATES A GROUP OF LAW FIRMS SPECIALIZING IN BUSINESS AND A PARTNER IN THE MINNEAPOLIS LAW FIRM OF MASLON EDELMAN BORMAN & BRAND ASKS OF PRIMERUS DO THEY REALLY HAVE SUBSTANCE AND QUALITY AND DO THEY THROW MEMBERS OUT WHO DON'T MEET THEIR STANDARDS MR BUCHANAN SAYS MEMBERS WILL BE REVIEWED ANNUALLY TO ENSURE THEIR COMPLIANCE WITH PRIMERUS STANDARDS HE SAYS THEY ALSO ARE REQUIRED TO HAVE HIGH MARKS FROM CLIENTS AND JUDGES THOUGH HE WOULDN'T BE SPECIFIC MR BUCHANAN SAYS THAT HUNDREDS OF POTENTIAL MEMBERS HAVE BEEN REFUSED OVER THE PHONE BECAUSE OF PROBLEMS FOR INSTANCE WITH THEIR STATE BAR ASSOCIATIONS EVEN IF PRIMERUS HOLDS ITS MEMBERS TO ITS PRINCIPLES HOWEVER OTHER INDEPENDENT APPRAISERS ALREADY ARE AVAILABLE TO HELP CONSUMERS TO EVALUATE LAWYERS AT LEAST 13 STATES AND SOME PROFESSIONAL LAW GROUPS CERTIFY LAWYERS AS QUALIFIED SPECIALISTS THE AMERICAN BANKRUPTCY INSTITUTE FOR INSTANCE CERTIFIES BANKRUPTCY LAWYERS STILL SCOTT WILLIAMSON DIRECTOR OF THE INSTITUTE'S BOARD OF CERTIFICATION APPLAUDS MOVES BY PRIVATE LAWFIRM GROUPS SUCH AS PRIMERUS TO INCREASE LAWYERS' PROFESSIONALISM SUCH AFFILIATIONS SAYS MR WILLIAMSON CAN FOCUS ON THINGS PECULIAR TO THEIR LOCALITY THERE IS ROOM FOR THEM BLACK ENTERPRISE MAGAZINE HAS COMPILED WHAT APPEARS TO BE THE FIRST LIST OF THE COUNTRY'S LEADING BLACK LAW FIRMS IN THE PAST WHEN LAW FIRMS HAVE BEEN DISCUSSED AFRICANAMERICAN LAW FIRMS HAVEN'T BEEN PART OF THE MIX SAID SHERYL HILLIARD TUCKER BLACK ENTERPRISE'S EDITOR IN CHIEF THE PURPOSE OF THIS ARTICLE WAS TO BRING THESE TYPES OF FIRMS TO THE ATTENTION OF CORPORATE AMERICA FIRMS THAT MADE THE LIST EACH HAD GROSS RECEIPTS OF 25 MILLION TO 9 MILLION A YEAR AT LEAST 10 LAWYERS DID LITIGATION AND TRANSACTIONAL WORK FOR CORPORATE CLIENTS WERE AT LEAST FIVE YEARS OLD AND RECEIVED POSITIVE EVALUATIONS FROM CLIENTS THE LIST IS THE SUBJECT OF THE MAGAZINE'S AUGUST COVER STORY CORPORATE COSTCUTTING IS THE CHIEF REASON THAT BLACK LAW FIRMS WHICH ARE USUALLY SMALLER AND CHEAPER THAN OLDER MORE ESTABLISHED FIRMS HAVE SEEN AN INCREASE IN THEIR NUMBERS AND IN THEIR BUSINESS SAID WILLIAM HASTIE A PARTNER IN SAN FRANCISCO LAW FIRM OF ARNELLE & HASTIE MR HASTIE WHOSE 32LAWYER FIRM MADE THE BLACK ENTERPRISE LIST ALSO ATTRIBUTED THE INCREASES TO VOLUNTARY PROGRAMS SPONSORED BY THE AMERICAN BAR ASSOCIATION AND OTHER GROUPS AIMED AT ENCOURAGING CORPORATIONS TO DRAW ON MINORITY LAW FIRMS THIS ARTICLE COULDN'T HAVE BEEN WRITTEN A DOZEN YEARS AGO BECAUSE THERE WERE ONLY TWO OR HALF A DOZEN BLACKOWNED LAW FIRMS IN THE COUNTRY THAT HAD ANY SIGNIFICANT CORPORATE EXPERIENCE EXCLUDING GOVERNMENT WORK SAID MR HASTIE OTHER LAW FIRMS LISTED IN THE ARTICLE INCLUDE LEWIS WHITE & CLAY OF DETROIT WITH 36 LAWYERS BARNES MCGHEE POSTON & SEGUE OF NEW YORK WITH 31 ATTORNEYS MCGEE LAFAYETTE WILLIS & GREENE OF SAN FRANCISCO WITH 23 ATTORNEYS AND WOOD WILLIAMS RAFALSKY & HARRIS OF NEW YORK WITH 23 ATTORNEYS WHO'S NEWS ROBERT J SULLIVAN FORMER MANAGING DIRECTOR AND GENERAL COUNSEL OF INSURER CRUM & FORSTER INC JOINED SKADDEN ARPS SLATE MEAGHER & FLOM AS A PARTNER MR SULLIVAN WILL ADVISE THE NEW YORK LAW FIRM'S INSURANCE CLIENTS CRUM & FORSTER IS A UNIT OF XEROX CORP ALSO JOINING SKADDEN IS WILLIAM S SCHERMAN FORMER GENERAL COUNSEL OF THE FEDERAL ENERGY REGULATORY COMMISSION HE IS A PARTNER IN THE FIRM'S WASHINGTON OFFICE 9307150086 930715 BUSINESS BRIEF MICROAGE INC STRONG RESULTS FOR QUARTER TAKE ANALYSTS BY SURPRISE MICROAGE INC REPORTED UNEXPECTEDLY STRONG THIRDQUARTER EARNINGS OF 3 MILLION OR 50 CENTS A SHARE COMPARED WITH 15 MILLION OR 26 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD EXPECTED NET INCOME OF ABOUT 35 CENTS A SHARE FOR THE QUARTER ENDED JUNE 30 THE RESULTS SENT THE COMPANY'S STOCK SOARING 325 OR 21 TO 19 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE PHOENIX COMPANY WHICH PROVIDES INFORMATIONTECHNOLOGY PRODUCTS AND SERVICES THROUGH FRANCHISED STORES AND OTHER MEANS SAID A BIG INCREASE IN LARGEACCOUNT SALES ACCOUNTED FOR A 54 JUMP IN REVENUE TO 3921 MILLION FROM 2545 MILLION THE COMPANY ALSO CITED INVENTORY MANAGEMENT AND EXPENSE CONTROL AS CONTRIBUTING TO IMPROVED PROFITS ANALYST WALTER WINNITCKI OF DILLON READ & CO SAID THE STRONG QUARTER SHOULD BE FOLLOWED BY MORE PERIODS OF IMPROVED EARNINGS PARTLY BECAUSE THE COMPANY IS REELING IN COSTS EVEN AS ITS SALES GROW 9307150084 930715 FINANCING BUSINESS INTERNATIONAL TECHNOLOGY CORP INTERNATIONAL TECHNOLOGY CORP TORRANCE CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 24 MILLION DEPOSITARY SHARES EACH REPRESENTING 1/100 OF A SHARE OF CUMULATIVE CONVERTIBLE EXCHANGEABLE PREFERRED STOCK AND HAVING A PROPORTIONAL LIQUIDATION VALUE OF 25 A DEPOSITARY SHARE THE NET PROCEEDS OF THE 60 MILLION OFFERING WILL BE USED TO REDUCE OUTSTANDING DEBT BY REDEEMING AT PAR VALUE PART OF THE ENVIRONMENTAL MANAGEMENT COMPANY'S OUTSTANDING 9 3/8 SENIOR NOTES DUE 1996 PAYING DOWN AMOUNTS UNDER ITS REVOLVING CREDIT FACILITY AND FOR GENERAL CORPORATE PURPOSES 9307150083 930715 US ALLEGES HOMEFED REAL ESTATE SALE WAS SHAM' TO HIDE RISK SAN DIEGO CALIF THE US ATTORNEY'S OFFICE HERE SAID IT FILED A CIVIL ACTION SEEKING THE FORFEITURE OF ABOUT 2000 ACRES OF LAND IT CLAIMS WERE SOLD BY HOMEFED BANK THROUGH DUBIOUS TRANSACTIONS PROSECUTORS CONTEND HOMEFED BANK TRIED TO MAKE IT APPEAR AS THOUGH IT HAD SOLD ITS INTEREST IN A SOUTHERN CALIFORNIA REAL ESTATE PROJECT IN ORDER TO IMPROVE ITS CAPITAL POSITION THE INVESTIGATION WAS PROMPTED BY INFORMATION SUPPLIED BY THE FEDERAL RESOLUTION TRUST CORP WHICH IS NOW SEEKING TO SELL THE ASSETS OF HOMEFED LAST YEAR THE FEDERAL GOVERNMENT CLOSED HOMEFED BANK AND PLACED IT UNDER THE CONSERVATORSHIP OF THE RTC ACCORDING TO THE US ATTORNEY'S OFFICE IN 1990 HOMEFED SOLD A MASTERPLANNED COMMUNITY IN EL CAJON CALIF TO RANCHO SAN DIEGO PARTNERS THAT PARTNERSHIP IS OWNED BY A HOMEFED UNIT AND COKEREWING CO OF ROSEVILLE CALIF HOWEVER THE TRANSACTION THAT LED TO THE PURCHASE WAS A SHAM SAID ASSISTANT US ATTORNEY RICHARD FISHKIN PROSECUTORS CONTEND HOMEFED OFFICIALS TRIED TO MISLEAD FEDERAL REGULATORS INTO THINKING IT HAD SOLD THE PROPERTY EVEN THOUGH IT RETAINED NEARLY 100 OF THE RISK IN THE PROJECT IN EFFORTS TO IMPROVE THE APPEARANCE OF ITS CAPITAL A SPOKESWOMAN FOR COKEREWING SAID THE COMPANY HADN'T YET SEEN THE COMPLAINT AND DECLINED COMMENT THE US ATTORNEY'S OFFICE DECLINED TO SAY WHETHER ANY INDIVIDUALS ASSOCIATED WITH THE COMPANIES INVOLVED WERE UNDER INVESTIGATION OR WOULD FACE ANY CHARGES IN CONNECTION WITH THE ALLEGED SCHEME 9307150082 930715 LETTERS TO THE EDITOR WHY WE FEAR NAFTA IN A SUCKING SOUND PEROT FRONTS FOR TEXTILE KING POTOMAC WATCH JUNE 25 PAUL A GIGOT CYNICALLY SUGGESTS THAT THE ANTINAFTA ADMONITIONS OF ROSS PEROT ARE WITHOUT MERIT XENOPHOBIC AND CORRUPT TALK ABOUT PREJUDICE MANY CITIZENS OPPOSED TO NAFTA WOULD NOT BE DIRECTLY AFFECTED BUT STILL CONCLUDE THAT MR PEROT IS CORRECT IN BELIEVING THAT ULTIMATELY SUBSTANTIALLY MORE JOBS AND CAPITAL WILL FLOW TO MEXICO THAN IN THE REVERSE DIRECTION FURTHER EXACERBATING OUR ECONOMIC MALAISE WHAT WE FEAR IS A MULTIPLICATION OF THE EXPERIENCE OF FLINT MICH WHICH SUFFERED ECONOMIC RUIN WHEN GENERAL MOTORS MOVED A MAJOR PRODUCTION FACILITY TO MEXICO OUR SOCIETY IS INCREASINGLY STRATIFIED WITH THE LESS WELLEDUCATED FINDING IT MORE DIFFICULT TO FIND JOBS WITH SATISFACTORY WAGES IN 1979 PER DRI/MCGRAWHILL HIGH SCHOOL GRADUATES EARNED ABOUT 10 LESS AND HIGH SCHOOL DROPOUTS EARNED MORE THAN 20 LESS THAN THE AVERAGE WORKER IN 1988 THIS RELATIVE DIFFERENCE HAD FURTHER WIDENED WITH HIGH SCHOOL GRADUATES EARNING MORE THAN 20 LESS AND HIGH SCHOOL DROPOUTS EARNING MORE THAN 40 LESS THAN THE AVERAGE WORKER NOT ALL AMERICANS WITH LOWER EDUCATION CAN BE TRAINED TO TAKE JOBS WITH HIGHER SKILL LEVELS AND CERTAINLY THERE IS NO SURPLUS OF SUCH JOBS NOW WE CAN ILL AFFORD TO HAVE THE HIGHER VALUEADDED MANUFACTURING JOBS WHICH THESE AMERICANS COULD OTHERWISE FILL MOVE TO MEXICO WE MUST RETAIN SUCH JOBS FOR THE LESS EDUCATED OR SUFFER THE BURDEN THEY MUST LOGICALLY BECOME FOR THE REST OF US LET'S FACE IT THE SYSTEM IS RIGGED IN FAVOR OF EXPORTING THESE JOBS TO MEXICO TOP MANAGEMENT IS REWARDED BY HAVING THEIR STOCK OPTIONS ESCALATE IN VALUE AND REDUCING MANUFACTURING COSTS BY A SIGNIFICANT MULTIPLE SHOULD MAKE MANY OF THEM RICH AND PLEASE THEIR SHAREHOLDERS IT IS NOT MANAGEMENT'S PRIMARY CONCERN THAT DISPLACED AMERICANS MAY NOT FIND REPLACEMENT JOBS AND THAT THE CUMULATIVE EFFECT OF SIMILAR DECISIONS IS NEGATIVE FOR THE ECONOMY BUT THESE ISSUES MUST REMAIN THE CONCERN OF CONSCIENTIOUS REPRESENTATIVES IN GOVERNMENT WHO SHOULD ACT IN THE COMMON INTEREST AND THAT MEANS THE NAFTA AGREEMENT SHOULD BE SCUTTLED WHILE WE STILL HAVE THE CHANCE MR GIGOT SAYS MR PEROT GETS HIS FACTS FROM A BELTWAY OUTFIT WITH THE HIGHTONED NAME OF THE CENTER FOR PUBLIC INTEGRITY IT IS INDEED TRUE THAT ROSS PEROT HAS MADE USE OF SOME OF THE STUDIES WE'VE PUBLISHED SO HAVE OTHERS SUCH AS BILL CLINTON PAT BUCHANAN JERRY BROWN THE GENERAL ACCOUNTING OFFICE THE FBI CONGRESS AND HUNDREDS OF JOURNALISTS AS A NONPARTISAN ORGANIZATION WE INVESTIGATE PUBLICSERVICE AND ETHICSRELATED ISSUES IN THE FRONT OF EVERY STUDY WE DISCLOSE WHERE OUR MONEY COMES FROM NAMELY FROM FOUNDATIONS CORPORATIONS LABOR UNIONS INDIVIDUALS AND REVENUE FROM NEWS ORGANIZATIONS THE REVOLVING DOOR TO FOREIGN LOBBYING HAS LONG BEEN AN INTEREST OF OUR FOUNDING MEMBERS AND CERTAIN AUTHORS OF OUR STUDIES SADLY ON THAT AND OTHER SUBJECTS WE'VE INVESTIGATED NOT EVERYONE HAS AGREED AND SOME DONORS HAVE SUBSEQUENTLY WITHDRAWN THEIR FUNDING OF COURSE THIS HAS MADE OUR TASK EVEN MORE DIFFICULT INDEED OUR EXPERIENCE WITH THE RECENT NAFTA LOBBYING STUDY THE TRADING GAME CONFIRMS THAT A PUBLIC DEBATE OF THE ISSUES IS EXTRAORDINARILY DIFFICULT EVEN THOUGH EVERYONE AGREES ON THE FACTS WE HAVE PRESENTED 9307150081 930715 LETTERS TO THE EDITOR SOME OF US BACK THE TERM LIMITS BILL I WOULD LIKE TO POINT OUT WHAT MAY BE CONSTRUED AS A SLIGHTLY MISLEADING STATEMENT IN YOUR JUNE 24 EDITORIAL INCUMBENTS VS THE PEOPLE IT WAS STATED THAT THE NEW JERSEY STATE SENATE PRESIDENT DON DIFRANCESCO HAS UNDERGONE INCREASING PRESSURE FROM THE STATE'S CONGRESSIONAL DELEGATION TO DEEPSIX THE TERM LIMITS BILL THAT RECENTLY PASSED THE STATE ASSEMBLY BY AN OVERWHELMING 2TO1 MARGIN WHILE SOME MEMBERS OF THE CONGRESSIONAL DELEGATION MAY BE OPPOSED TO THIS MEASURE IT SHOULD BE NOTED THAT I AND SEVERAL OTHER OF MY NEW JERSEY COLLEAGUES IN THE HOUSE ARE STRONG SUPPORTERS OF TERM LIMITS INCLUDING THOSE IN THE CURRENT NEW JERSEY MEASURE THE PROVISIONS EMBODIED WILL EXPAND PARTICIPATION IN THE POLITICAL PROCESS AND HELP RESTORE BADLY NEEDED INTEGRITY TO THE INSTITUTIONS OF CONGRESS UNFORTUNATELY SEVERAL OF YOUR READERS INTERPRETED THE EDITORIAL AS SUGGESTING THE NEW JERSEY CONGRESSIONAL DELEGATION WAS UNIFIED IN ITS OPPOSITION TO THE BILL THIS SIMPLY IS NOT THE CASE WHILE TERM LIMITS REPRESENT CONSTRUCTIVE PROGRESS IN CONGRESSIONAL REFORM AT THE FEDERAL LEVEL I BELIEVE THEY WOULD HOLD EQUAL BENEFIT FOR OUR ELECTED STATE OFFICIALS 9307150080 930715 TELECOMMUNICATIONS REGIONAL BELLS FIGHT TO OFFER LONGDISTANCE BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE REGIONAL BELL TELEPHONE COMPANIES ARE LAUNCHING A BROAD OFFENSIVE TO KNOCK DOWN BARRIERS THAT EXCLUDE THEM FROM THE LUCRATIVE LONGDISTANCE MARKET FACED WITH NASCENT COMPETITION IN THEIR LOCAL PHONE BUSINESS FIVE OF THE SEVEN COMPANIES TODAY PLAN TO ASK FEDERAL REGULATORS TO ADOPT RULES THAT WOULD APPLY ONCE THE BARRIERS ARE REMOVED BY THE COURTS OR CONGRESS THOUGH THE PROCESS COULD TAKE SEVERAL YEARS EXPERTS EXPECT THE BARRIERS WILL FALL THE COMPANIES VIRTUAL MONOPOLIES WITHIN THEIR SERVICE TERRITORIES ARGUE THAT RESTRICTIONS CONTAINED IN THE 1982 ANTITRUST CONSENT DECREE THAT BROKE UP THE BELL SYSTEM ARE OUTOFDATE THE RAPID TECHNOLOGICAL AND MARKET CHANGES OF RECENT YEARS THE BELLS ARGUE HAVE OPENED THE WAY FOR CABLETELEVISION OPERATORS AND NEW FIBEROPTIC NETWORKS TO CARRY TELEPHONE TRAFFIC FOR BIG BUSINESSES AND LONGDISTANCE CARRIERS SIPHONING BUSINESS FROM LOCAL PHONE COMPANIES THE 1982 DECREE BARRED THE BELLS FROM PROVIDING LONGDISTANCE SERVICE MANUFACTURING TELECOMMUNICATIONS EQUIPMENT AND OFFERING INFORMATION SERVICES THE LAST RESTRICTION WAS LIFTED NEARLY TWO YEARS AGO THE BELL COMPANIES' PETITION TODAY TO THE FEDERAL COMMUNICATIONS COMMISSION IS JUST THE BEGINNING OF A MULTIYEAR CAMPAIGN THE FCC PROCEEDING ITSELF WILL BE CONTENTIOUS EASILY LASTING MORE THAN A YEAR A FAVORABLE OUTCOME FROM THE FCC IS HARDLY GUARANTEED PARTICULARLY BECAUSE THE AGENCY IS AWAITING A NEW CHAIRMAN AND MAY BACK AWAY FROM THE UNRELENTING DEREGULATION OF THE REAGAN AND BUSH ADMINISTRATIONS EVEN WITH A FAVORABLE RULING FROM THE FCC THE COMPANIES MUST WIN APPROVAL TO OFFER LONGDISTANCE SERVICE FROM THE JUSTICE DEPARTMENT AND THE COURTS THE PHONE COMPANIES HOPE TO CONVINCE THE DEPARTMENT AND FEDERAL JUDGE HAROLD GREENE WHO OVERSEES THE CONSENT DECREE THAT THE FCC CAN ADEQUATELY POLICE AGAINST ANY ANTICOMPETITIVE ACTIVITIES AT THE SAME TIME THE BELL COMPANIES WOULD LIKE TO PERSUADE CONGRESS TO SCRAP THE CONSENT DECREE LETTING THEM OFFER LONGDISTANCE SERVICE AND MANUFACTURE TELECOMMUNICATIONS EQUIPMENT BUT SUCH LEGISLATION HAS LITTLE CHANCE OF PASSAGE WITHOUT STRICT CONSTRAINTS THAT THE BELLS AREN'T WILLING TO ACCEPT OPPOSITION TO THE BELL OFFENSIVE WILL BE INTENSE IN FILING THE FCC PETITION THE COMPANIES ARE BARKING UP THE WRONG TREE SAID JAMES LEWIS VICE PRESIDENT OF REGULATORY AND PUBLIC POLICY FOR LONGDISTANCE CARRIER MCI COMMUNICATIONS CORP THE FCC DOESN'T HAVE JURISDICTION TO LIFT THE RESTRICTIONS BESIDES THE BELL COMPANIES CANNOT DEMONSTRATE THAT THE BOTTLENECK HAS GONE AWAY THEY STILL HAVE MORE THAN 99 OF THE LOCAL ACCESS MARKET AND THAT DOESN'T FALL UNDER ANY DEFINITION OF EFFECTIVE COMPETITION AN AMERICAN TELEPHONE & TELEGRAPH CO SPOKESMAN SAID AT&T ALREADY HAS MADE IT CLEAR THAT ONCE COMPETITION IS DEMONSTRABLE AND THRIVING IN THE LOCAL PHONE BUSINESS WE HAVE NO PROBLEM WITH BARRIERS COMING DOWN BUT WE ARE NOWHERE NEAR THAT POINT NOW IN THEIR PETITION TO THE FCC THE FIVE COMPANIES BELL ATLANTIC CORP BELLSOUTH CORP NYNEX CORP PACIFIC TELESIS GROUP AND SOUTHWESTERN BELL CORP APPEAR TO PIN THEIR HOPES ON THE FEDERAL APPEALS COURT FOR THE DISTRICT OF COLUMBIA CIRCUIT WHICH EARLIER CLEARED THE WAY FOR THE REGIONAL BELLS TO ENTER THE INFORMATIONSERVICES BUSINESS THE APPEALS COURT THEY WROTE HAS HELD THAT THE COMMISSION CAN RETAKE THE POLICY INITIATIVE IN THIS AREA BY SETTING THE EXPRESS TERMS AND CONDITIONS FOR THE BELLS' ENTRY INTO THE LONGDISTANCE BUSINESS THE COMPANIES ALSO ARGUE THAT OFFERING LONGDISTANCE SERVICE WOULD BENEFIT CUSTOMERS BY PROVIDING COMPETITION IN THE 55 BILLION LONGDISTANCE MARKET THE MARKET THEY SAID IS STILL DOMINATED BY AT&T WITH A MARKET SHARE OF ABOUT 60 THE CLIMATE HAS CHANGED IN THE PAST YEAR SAID RONALD STOWE HEAD OF PACIFIC TELESIS'S WASHINGTON OFFICE PROPOSED ALLIANCES AND NEW TECHNOLOGIES ARE FORCING THE GOVERNMENT TO DECIDE HOW TO PERMIT LONGDISTANCE CARRIERS AND OTHERS TO COME INTO OUR BUSINESS WITHOUT LETTING US OFFER COMPARABLE SERVICES INCLUDING LONGDISTANCE NOWHERE IS THE THREAT OF COMPETITION FELT MORE STRONGLY THAN AT SAN FRANCISCOBASED PACIFIC TELESIS SEVERAL ALTERNATIVE PHONE COMPANIES ALREADY SERVE BIG CORPORATIONS IN SAN FRANCISCO AND LOS ANGELES AND THE COMPANY'S PACIFIC BELL UNIT EXPECTS CALIFORNIA REGULATORS TO DECIDE THIS WEEK TO LET LONGDISTANCE CARRIERS COMPETE FOR TOLL CALLS LAST YEAR THAT BUSINESS SEGMENT CONTRIBUTED 21 BILLION TO PACIFIC TELESIS'S 995 BILLION IN REVENUE NEITHER AMERITECH CORP NOR U S WEST INC SIGNED THE PETITION CHICAGOBASED AMERITECH HAS A SEPARATE PETITION BEFORE THE FCC AND U S WEST APPARENTLY IS CONCENTRATING ON A NEW ALLIANCE WITH TIME WARNER INC AND BUILDING A NETWORK CAPABLE OF CARRYING MOVIES AND OTHER VIDEO PROGRAMMING SPOKESMEN HOWEVER SAID THEIR COMPANIES WOULD LIKE TO SEE THE LONGDISTANCE BARRIER REMOVED 9307150079 930715 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 CIRCUS CIRCUS ENTERPRISES INC 300 MILLION OF SENIOR SUBORDINATED NOTES AND DEBENTURES PRICED BY A GROUP OF UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 150 MILLION OF SENIOR SUBORDINATED NOTES DUE JULY 15 2003 WAS PRICED AS 675S AT 99894 TO YIELD 6765 THE SECOND PART CONSISTING OF 150 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE JULY 15 2013 WAS PRICED AT PAR TO YIELD 7625 BOTH PARTS ARE NONCALLABLE AND BOTH WERE PRICED AT A SPREAD OF 105 PERCENTAGE POINTS ABOVE THE COMPARABLE TREASURYS THE ISSUES ARE RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP CONNECTICUT LIGHT & POWER CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JULY 1 2000 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH BONDS WERE REOFFERED AS 575S AT 988 TO YIELD 596 NONCALLABLE FOR FIVE YEARS THE ISSUE WAS PRICED AT A SPREAD OF 06 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P CONNECTICUT LIGHT & POWER IS A UNIT OF NORTHEAST UTILITIES CONNECTICUT LIGHT & POWER CO 100 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JULY 22 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH IT WAS REOFFERED AS 75S AT 9952 TO YIELD 754 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P AMERICAN HEALTH PROPERTIES INC THREE MILLION COMMON SHARES SOLD AT 24875 APIECE THROUGH AN UNDERWRITING GROUP LED BY GOLDMAN SACHS & CO CHINA TIRE HOLDINGS LTD INITIAL OFFERING OF 61 MILLION COMMON SHARES PRICED AT 17 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CONCURRENT COMPUTER CORP 197 MILLION COMMON SHARES PRICED AT 3 APIECE THROUGH MANAGERS SALOMON BROTHERS INC AND NEEDHAM & CO FRESH CHOICE INC 14 MILLION COMMON SHARES PRICED AT 25 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS GENERAL NUTRITION COS 24 MILLION COMMON SHARES PRICED AT 37 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HORNBECK OFFSHORE SERVICES INC 35 MILLION COMMON SHARES PRICED AT 17125 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GEORGIA 600 MILLION GENERAL OBLIGATION REFUNDING BONDS SERIES 1993E TENTATIVELY PRICED TO YIELD FROM 24 IN 1994 TO 5 IN 2007 BY UNDERWRITERS LED BY FIRST BOSTON CORP AND JP MORGAN SECURITIES INC THE BONDS ARE RATED TRIPLEA BY MOODY'S AND DOUBLEAPLUS BY S&P IOWA 600 MILLION TAX AND REVENUE ANTICIPATION NOTES DUE JUNE 30 1994 TENTATIVELY PRICED AS 325S AT 100369 TO YIELD 285 BY UNDERWRITERS LED BY GOLDMAN SACHS & CO THE NOTES ARE RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P BASED IN PART ON THE BACKING OF A LETTER OF CREDIT FROM UBS SECURITIES LINCOLN NEB 2464 MILLION ELECTRIC SYSTEM REVENUE REFUNDING BONDS SERIES 1993A TENTATIVELY PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 26 IN 1994 TO 555 IN 2015 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P PUERTO RICO HIGHWAY AUTHORITY 105 BILLION OF HIGHWAY REVENUE BONDS TENTATIVELY PRICED BY A MERRILL LYNCH & CO GROUP TO YIELD UP TO 574 IN 2022 THE OFFERING CONSISTS OF 422 MILLION SERIES W HIGHWAY REVENUE BONDS DUE 20062010 2013 2017 AND 2020 BONDS DUE 20062010 AND 2013 ARE NOT PUBLICLY REOFFERED THE 113 MILLION BONDS DUE 2017 WERE PRICED AS 55S TO YIELD 573 AND THE 1016 MILLION BONDS DUE 2020 WERE PRICED AS 5S TO YIELD 571 THERE ARE ALSO 6285 MILLION SERIES X HIGHWAY REVENUE BONDS PRICED TO YIELD FROM 285 IN 1994 TO 53 IN 2003 BONDS DUE 20042010 WERE NOT REOFFERED TERM BONDS COMPRISE 261 MILLION 55 BONDS DUE 2013 WHICH ARE NOT REOFFERED 285 MILLION 55 BONDS DUE 2017 PRICED TO YIELD 573 AND 1894 MILLION 525 BONDS DUE 2022 PRICED TO YIELD 574 THE BONDS ARE RATED BAA1 BY MOODY'S AND UNDERWRITERS EXPECT A SINGLEA RATING FROM S&P SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT ARIZ 5802 MILLION SALT RIVER PROJECT ELECTRIC SYSTEM REFUNDING BONDS 1993 SERIES B DUE 19942010 2011 2013 2019 AND 2029 WERE TENTATIVELY PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 26 IN 1994 TO 5625 IN 2029 THE BONDS ARE EXPECTED TO BE RATED DOUBLEA BY BOTH MOODY'S AND S&P FORD MOTOR CO 11 BILLION OF AUTOMOBILE LOAN ASSETBACKED SECURITIES PRICED AS 43S AT 99 30/32 TO YIEL4378 A SPREAD OF 40 BASIS POINTS ABOVE THE TREASURY'S TWOYEAR NOTE ACCORDING TO MCM CORPORATEWATCH THE SECURITIES ISSUED THROUGH FORD CREDIT 1993B GRANTOR TRUST WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P BASED ON A 75 SUBORDINATED CLASS AND A 125 SUBORDINATE SPREAD ACCOUNT FIRST BOSTON CORP LED THE OFFERING THE MONTHLYPAY SECURITIES HAVE AN AVERAGE LIFE OF 17 YEARS AND A LEGAL FINAL MATURITY OF JULY 15 1998 PAYMENTS BEGIN AUG 15 FORD CREDIT AUTO RECEIVABLES CORP A UNIT OF FORD MOTOR CO IS THE LOAN SELLER FORD MOTOR CREDIT CO IS THE LOAN SERVICER ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 350 MILLION OF 8 EUROBONDS DUE APRIL 2 2003 AT ISSUE AND REOFFER PRICE 9974 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD SALOMON BROTHERS INTERNATIONAL LTD AND SG WARBURG SECURITIES LTD BONDS WILL TRADE INTERCHANGEABLY WITH 650 MILLION OF IDENTICAL OUTSTANDING NOTES NEW TRANCHE YIELDS 40 BASIS POINTS ABOVE COMPARABLE UK GILT ALL OTHER TERMS UNCHANGED FEES 035 POINT ALLIANCE/LEICESTER BUILDING SOCIETY UK 50 MILLION OF FLOATINGRATE EURONOTES DUE JUNE 1997 AT ISSUE PRICE PAR VIA BARING BROTHERS & CO BONDS WILL TRADE INTERCHANGEABLY WITH 150 MILLION OF IDENTICAL OUTSTANDING NOTES ALL OTHER TERMS UNCHANGED INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 01875 POINT FEES UNDISCLOSED BANCO NACIONAL SA BRAZIL 90 MILLION OF 85 EUROBONDS DUE JULY 22 1996 AT ISSUE AND REOFFER PRICE 997408 TO YIELD 430 BASIS POINTS OVER COMPARABLE US TREASURY NOTE VIA MERRILL LYNCH INTERNATIONAL LTD FEES ONE POINT PAYABLE SEMIANNUALLY BAYERISCHE LANDESBANK GIROZENTRALE GERMAN AGENCY 200 MILLION OF COLLARED SUBORDINATED FLOATINGRATE EURONOTES DUE AUG 12 2005 AT ISSUE AND REOFFER PRICE 99875 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR LESS 025 POINT SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 FEES 05 POINT BAYERISCHE VEREINSBANK AG GERMANY 200 BILLION ITALIAN LIRE OF 965 EUROBONDS DUE AUG 4 2000 AT ISSUE PRICE 101475 VIA BANCA DI ROMA BONDS REOFFERED AT 999 TO YIELD 967 FEES 1875 POINTS DRESDNER BANK AG GERMANY 150 MILLION OF COLLARED SUBORDINATED FLOATINGRATE EURONOTES DUE AUG 6 2005 AT ISSUE AND REOFFER PRICE 99875 VIA DRESDNER BANK AND KIDDER PEABODY SECURITIES CO INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR LESS 025 POINT SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 FEES 05 POINT HOECHST CORP SOMERVILLE NJ GERMAN PARENT 500 MILLION OF 6 EUROBONDS DUE AUG 3 2000 AT ISSUE PRICE 101725 VIA DRESDNER BANK AG AND CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 1002 TO YIELD 5964 A MARGIN OF 49 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1875 POINTS NORTHEAST FINANCE JAPAN 150 MILLION SWISS FRANCS OF 45 PUBLIC BONDS DUE AUG 5 2003 PRICED AT 1025 VIA UNION BANK OF SWITZERLAND FEES 2375 POINTS ROLLSROYCE CAPITAL INC UK PARENT 300 MILLION OF 7125 EUROBONDS DUE JULY 29 2003 AT ISSUE AND REOFFER PRICE 9948 VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD 72 A SPREAD OF 132 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 05 POINT ROYAL BANK OF SCOTLAND PLC UK PARENT 200 MILLION OF 95 PERPETUAL UNDATED SUBORDINATED NOTES AT ISSUE AND REOFFER PRICE 98541 VIA GOLDMAN SACHS INTERNATIONAL LTD AND UBS LTD BONDS YIELD 966 FOR FIRST 25 YEARS A MARGIN OF 1375 BASIS POINTS OVER UK GILT DUE 2017 BONDS CALLABLE AFTER 25 YEARS AT PAR AND EVERY FIVE YEARS THEREAFTER IF NOT CALLED COUPON RESET AT THENPREVAILING COUPON OR THEN BENCHMARK FIVEYEAR GILT PLUS 2375 BASIS POINTS FEES 0625 POINT WORLD BANK SUPRANATIONAL 10 BILLION SPANISH PESETAS OF 975 MATADOR BONDS DUE AUG 4 1998 AT ISSUE PRICE 10115 VIA BANCO ESPANOL DE CREDITO SA BONDS YIELD 984 AT 9965 BREAKEVEN PRICE FOR COMANAGERS A SPREAD OF 10 BASIS POKNTS BELOW COMPARABLE SPANISH GOVERNMENT BOND FEES 1625 POINTS LESS 0125 POINT FOR LEAD MANAGER 9307150078 930715 CREDIT MARKETS LONGBOND YIELD DECLINES TO NEW 16YEAR LOW ON INFLATION DATA MUNICIPAL REFUNDING MOVES BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LONGTERM TREASURY YIELDS PLUNGED YESTERDAY IN A BOND MARKET RALLY FUELED BY REPORTS OF LOWER INFLATION AND BY PURCHASES BY CITIES AND STATES USING TREASURYS TO REFUND HIGHERYIELDING DEBT THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED FROM 661 ON TUESDAY TO 656 YESTERDAY THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE NEARLY 3/4 POINT OR NEARLY 750 FOR A BOND WITH A 1000 FACE VALUE TO 107 9/32 YIELDS BEGAN TO DROP SOON AFTER THE GOVERNMENT REPORTED THAT THE CONSUMER PRICE INDEX WAS UNCHANGED IN JUNE ON TUESDAY THE GOVERNMENT REPORTED THAT THE PRODUCER PRICE INDEX DROPPED 03 IN JUNE WITH THE TWO REPORTS BEHIND THEM INVESTORS YESTERDAY HAD LITTLE REASON TO FEAR INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN WITH INFLATION ON HOLD SAID ALAN LEVENSON A MONEY MARKET ECONOMIST AT THE UBS SECURITIES UNIT OF UNION BANK OF SWITZERLAND YOU CAN BUY LONGTERM SECURITIES WITH IMPUNITY A 3 BILLION WAVE OF NEW ISSUANCE OF MUNICIPAL BONDS HELPED PUSH YIELDS EVEN LOWER THAT'S BECAUSE MANY CITIES AND STATES WERE RUNNING SOCALLED DEFEASANCE PROGRAMS IN WHICH THEY ISSUED NEW NOTES AND BONDS TO REPLACE OLDER HIGHERYIELDING DEBT THAT IS NOT YET CALLABLE BECAUSE THE OLD DEBT IS NOT YET CALLABLE THE ISSUERS USE THE PROCEEDS FROM THE BOND OFFERINGS TO BUY US TREASURYS USUALLY MATURING IN SEVEN TO 10 YEARS WHICH ARE DEPOSITED IN ESCROW ACCOUNTS UNTIL THE OLDER BONDS ARE CALLABLE IT WOULD SEEM THE NO 1 REASON THE TREASURY MARKET IS UP IS THE DEFEASANCE TAKING PLACE IN THE MUNI MARKET SAID EDWARD DROESCH VICE PRESIDENT OF UNDERWRITING AND SYNDICATION AT GOLDMAN SACHS & CO GOLDMAN HAS BEEN THE LEAD UNDERWRITER FOR ABOUT 2 BILLION OF THIS WEEK'S MUNICIPAL DEBT OFFERINGS THERE WERE OTHER FACTORS CONTRIBUTING TO YESTERDAY'S RALLY SAID BOND TRADERS SUCH AS A STEEP DECLINE IN OIL PRICES ANOTHER SIGN OF WANING INFLATION PRESSURES APPARENTLY IN ADVANCE OF THE INFLATION REPORTS YESTERDAY AND TUESDAY A FAIR NUMBER OF WALL STREET FIRMS SET UP SOCALLED SHORT POSITIONS IN ANTICIPATION OF THE YIELDS MOVING HIGHER AFTER THE INFLATION REPORTS A SHORT POSITION INVOLVES THE SALE OF A BORROWED SECURITY TO BE REPLACED AT A LATER DATE IF YIELDS RISE AND PRICES FALL THE SHORT POSITION BRINGS A PROFIT BUT IF YIELDS FALL AND PRICES RISE THE SHORT POSITION BRINGS LOSSES UNTIL THE INVESTOR CAN REVERSE IT BY REPLACING THE BORROWED SECURITY SOME ON WALL STREET WERE EXPECTING THE MARKET TO SELL OFF AFTER THE INFLATION NUMBERS CAME IN AS EXPECTED BECAUSE THEY BELIEVED ALL EXPECTATIONS FOR LOWER INFLATION HAD ALREADY BEEN FACTORED INTO THE MARKET BUT WHEN YIELDS STARTED FALLING YESTERDAY MORNING AS PRICES ROSE DEALERS HAD TO REVERSE THESE SHORT POSITIONS AND BUY SECURITIES THUS HELPING TO BOOST PRICES EVEN FURTHER ACCORDING TO MEAD L BRIGGS MANAGER OF GOVERNMENT TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC THE LOW RATES ALSO SPURRED A NUMBER OF INVESTORS IN MORTGAGEBACKED SECURITIES TO BUY INTERMEDIATE TREASURYS THEY DID THAT TO REPLACE SECURITIES CALLED AWAY FROM THEIR PORTFOLIOS AS THE RESULT OF HOMEOWNERS REFINANCING THEIR HOME LOANS AT LOWER INTEREST RATES SAID MR BRIGGS ANOTHER FACTOR CONTRIBUTING TO THE RALLY IS THE DEARTH OF NEW TREASURY NOTES AND BONDS THE NEXT AUCTION OF LONGTERM DEBT DOESN'T TAKE PLACE FOR A FEW MORE WEEKS WITH DEMAND BUILDING FOR TREASURY SECURITIES EVEN AT THESE LOW YIELD LEVELS THE LACK OF NEW SUPPLY HELPS BUOY THE PRICES OF OUTSTANDING SECURITIES SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP MANY IN THE BOND MARKETS BELIEVE THAT A TRIP BELOW A 65 YIELD FOR THE 30YEAR TREASURY BOND IS STILL POSSIBLE OVER THE NEXT COUPLE OF WEEKS BUT THE RIDE MAY GET ROUGHER AFTER THE TREASURY CONDUCTS ITS MULTIBILLIONDOLLAR QUARTERLY REFUNDING IN AUGUST SAID MR COSTAS THE WAVE OF SUPPLY WILL COMBINE WITH SOME VOLATILE INFORMATION COMING FROM WASHINGTON DC ON PRESIDENT CLINTON'S BUDGET PACKAGE AND DEFICIT REDUCTION TO MAKE THE MARKET MUCH LESS STABLE THAN IT IS NOW HE SAID ONE SIGN OF STRONG DEMAND FOR ALL TYPES OF BONDS WAS THE SUCCESS OF A 11 BILLION ISSUE OF ASSETBACKED SECURITIES FROM FORD MOTOR CO FIRST BOSTON THE LEAD UNDERWRITER PRICED THE DEAL TO YIELD 4378 JUST 040 PERCENTAGE POINT ABOVE THE TREASURY'S TWOYEAR NOTE COMPARED WITH A SPREAD OF 060 PERCENTAGE POINT ON A SIMILAR FORD DEAL IN MIDJANUARY THE LATEST SECURITIES HAVE AN AVERAGE MATURITY OF 17 YEARS AND ARE BACKED BY AUTO LOANS CITIES AND STATES RUSHED 3 BILLION OF MUNICIPAL DEBT TO MARKET YESTERDAY TO PUMP THE WEEK'S VOLUME UP TO 5 BILLION THE NEW ISSUANCE GENERALLY LURED BUYERS AND DIDN'T PRESSURE THE SECONDARY MARKET WHERE PRICES ENDED UNCHANGED TO 1/2 POINT HIGHER TRADERS AND ANALYSTS SAID TWOTHIRDS OF THE ISSUANCE WAS REFUNDING DEBT WHICH IS DEBT SOLD TO PAY FOR DEFEASANCE PROGRAMS RICHARD CICCARONE DIRECTOR OF TAXEXEMPT FIXEDINCOME RESEARCH AT KEMPER SECURITIES NOTES THAT RATES HAVE COME DOWN FOUR CONSECUTIVE WEEKS IN A ROW AND THAT'S A MAJOR FACTOR IN THE PERSISTENTLY HEAVY FLOW OF REFUNDINGS DEMAND WAS SO STRONG THAT SOME ISSUERS WERE ABLE TO LOWER THE YIELDS ON THEIR BONDS BY MOST COUNTS THE FLOOD OF ISSUANCE IS BEING ABSORBED BY INVESTORS DESPITE THE LOW RATES MUNIS STILL REPRESENT GOOD VALUE COMPARED WITH TAXABLE ALTERNATIVES ANALYSTS SAY YESTERDAY'S BIGGEST ISSUE WAS A 105 BILLION OFFERING OF HIGHWAY REVENUE BONDS FROM THE PUERTO RICO HIGHWAY AUTHORITY THE BONDS WERE PRICED BY A GROUP OF UNDERWRITERS LED BY MERRILL LYNCH & CO THE NOTES YIELDED FROM 285 FOR THOSE MATURING IN 1994 TO 574 FOR THOSE MATURING IN 2022 CORPORATIONS CONTINUED TO AVOID THE DEBT MARKET YESTERDAY DESPITE THE MOST ATTRACTIVE INTEREST RATES IN YEARS ONLY TWO ISSUES TOTALING 600 MILLION WERE PRICED BUT BOTH MET STRONG INVESTOR DEMAND INVESTMENTGRADE UTILITY CONNECTICUT LIGHT & POWER CO AND RECENTLY UPGRADED CASINO BUILDER AND OPERATOR CIRCUS CIRCUS ENTERPRISES INC BOTH SOLD TWOPART 300 MILLION OFFERINGS MEANWHILE ACTIVITY IN THE SECONDARY INVESTMENTGRADE MARKET PICKED UP IN RESPONSE TO THE CONSUMER PRICE DATA THE TRADING VOLUME OF SEASONED HIGHYIELD BONDS ALSO WAS BUSIER THAN IT HAS BEEN IN RECENT DAYS WITH MOST PRICES ENDING SLIGHTLY FIRMER PRICES OF ALL LEVELS OF RH MACY & CO'S DEBT SOARED AS RUMORS SWEPT THE MARKET OF AN IMPENDING RESTRUCTURING BY THE RETAILER CURRENTLY IN BANKRUPTCY PROCEEDINGS THE 145 SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 ROSE 2 1/2 POINTS TO 375 YESTERDAY SINCE MAY 27 A NUMBER OF RUMORS ABOUT THE COMPANY HAVE BOOSTED THE PRICE 165 POINTS OR 165 DOLLARS FOR EACH 1000 OF FACE VALUE EVEN THE MOST SENIOR BANK DEBT HAS RISEN IN PRICE TO 77 FROM 60 ONE MONTH AGO ACCORDING TO TRADERS AT SALOMON BROTHERS INC A LOT OF THE DEMAND HAS COME FROM REGIONAL DEALERS SAID MAX HOLMES DIRECTOR OF BANKRUPTCY RESEARCH AT SALOMON BROTHERS THAT'S THE PERFECT SIGN OF A RUMOR MR HOLMES ADDED THAT AT THE CURRENT PRICES THE MARKET WAS VALUING MACY AT 32 BILLION OR MORE THAN EIGHT TIMES THE COMPANY'S PROJECTED CASH FLOW FOR 1994 FORD ACHIEVED ONE OF THE BEST EXECUTIONS EVER REALIZED ON AN AUTOMOBILE ASSETBACKED SECURITY FOR ITS 11 BILLION TRANSACTION PRICED YESTERDAY FIRST BOSTON THE LEAD UNDERWRITER PRICED THE DEAL AT ABOUT NOON WITH A COUPON OF 43 TO YIELD 040 PERCENTAGE POINT ABOVE THE TREASURY'S TWOYEAR NOTE THE DEAL REPORTEDLY SOLD OUT WITHIN AN HOUR OF PRICING MEANWHILE THE MORTGAGE MARKET CAME TO LIFE AS MOST PASSTHROUGH SECTORS TRADED UP ON STRONGERTHANUSUAL INVESTOR DEMAND IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FINISHED 9/32 HIGHER AT 100 2/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ENDED 8/32 HIGHER AT 99 30/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 8/32 HIGHER AT 99 26/32 THE YIELD ON FORD'S ISSUE IS BELIEVED TO BE THE LOWEST ACHIEVED FOR A TWOYEAR AUTO LOAN DEAL FIRST BOSTON OFFICIALS SAY FIRST BOSTON WAS ABLE TO PRICE FORD'S LATEST TRANSACTION AT A FAR MORE ATTRACTIVE PRICE TO THE AUTO MAKER IN PART BECAUSE THERE HAVE BEEN VIRTUALLY NO STANDARDFARE AUTO LOAN DEALS IN SEVERAL MONTHS ALSO FORD'S LATEST DEAL WAS MORE THAN SIX MONTHS AGO MEANING BUYERS AREN'T CHOCK FULL OF BONDS CARRYING THE FORD NAME LYNN K ALDER AND LAURA JERESKI CONTRIBUTED TO THIS ARTICLE 9307150077 930715 PEPPERAND SALT TO BE DENIED GIVES ME JOY IS PRINTING YOUR NAME LUNCHING AT THE OFFICE DINING AL DESKO 9307150076 930715 LETTERS TO THE EDITOR DOUBLE STANDARD YOUR JUNE 24 PAGE ONE ARTICLE GIVES A MESSAGE OF SYMPATHY FOR ATTORNEYS IN HIGH PLACES SUCH AS ZOE BAIRD AND HER HUSBAND WHO TEACHES LAW AT YALE UNIVERSITY WHO CAN CIRCUMVENT THE LAW MAYBE WE SHOULD CONCLUDE THAT BOTH YALE UNIVERSITY AND AETNA CONDONE THOSE WHO DO KNOW THE LAW BUT AVOID THE OBEDIENCE IS THAT WHAT WE TEACH THAT LAWS CAN BE CIRCUMVENTED BY TEACHERS OF LAW AND THOSE IN PROMINENT PLACES 9307150075 930715 WHAT'S IN A NAME GREATLY INTERESTS GERMAN OFFICIALDOM YOU CAN'T JUST CALL YOUR SON SASCHA A COUPLE LEARNED WITHOUT SUING THE STATE BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BREMERHAVEN GERMANY OLAF AND SILKE WITTE HAD A SIMPLE DESIRE TO NAME THEIR SON SASCHA GERMAN OFFICIALS HAD A SIMPLE REPLY NO THEY DEMANDED THAT HE ALSO HAVE A MIDDLE NAME OTHERWISE THEY INSISTED IT WOULDN'T BE CLEAR THAT SASCHA IS A BOY IN GERMANY WHERE EVERY CHANGE OF ADDRESS HAS TO BE REGISTERED WITH THE POLICE WHERE REGULATIONS GOVERN THE HOURS YOU CAN BEAT CARPETS OUTDOORS AND RUN A WASHING MACHINE AND WHERE A COURT HAS EVEN RULED ON THE PLACEMENT OF GARDEN DWARFS WHY SHOULDN'T NAMING THE BABY ALSO BE A MATTER OF INTEREST TO THE STATE NAMES THAT OFFICIALS FIND ODD CAN BE REJECTED OUT OF HAND SECOND NAMES CAN BE REQUIRED AS IN THE CASE OF LITTLE SASCHA TO NAIL DOWN A CHILD'S SEX THOUGH SASCHA IS A COMMON BOY'S NAME IN GERMANY CHANGING A NAME IS A COMPLICATED PROCEDURE THAT CAN COST 1500 AND THE SURNAME MARRIED PEOPLE TAKE IS A PERENNIAL SUBJECT OF CONTROVERSY AND EVEN LEGISLATION FOR DETERMINED SELFEXPRESSIVE TYPES LIKE THE FORMER US NATIONAL BASKETBALL ASSOCIATION PLAYER WORLD B FREE MUSICIAN FRANK ZAPPA FATHER OF MOON UNIT AND DWEEZIL AND EVEN HILLARY RODHAM NO HYPHEN CLINTON GERMANY WOULD NOT BE HOSPITABLE TO THEIR NAMES IT'S AWFUL THE OVERADMINISTRATION IN GERMANY GROUSES MR WITTE MR WITTE SAID HE DIDN'T WANT HIS SON TO BE TEASED IN SCHOOL OVER A MIDDLE NAME AS HE HAD BEEN TEASED ABOUT HIS OWN WHICH IS HEINZ AND MR WITTE A HIGHWAY PATROLMAN IS THE PERSISTENT TYPE I DON'T LET MYSELF GET BOSSED AROUND HE SAYS THE STATE PLAYS ROUGH TOO FOR THE FIRST 13 MONTHS OF HIS LIFE SASCHA BARELY EXISTED IN THE EYES OF GERMANY HE DID HOWEVER HAVE A PASSPORT A PINK SHEET OF PAPER THAT GAVE HIS NAME AS WITTE WITHOUT A FRIENDLY OFFICIAL HAD SUPPLIED THE DOCUMENT SO THE WITTES COULD TAKE THE BABY WITH THEM TO DENMARK ON VACATION THE NAME GAME WHICH BECAME A MINOR CAUSE CELEBRE FINALLY ENDED FOR THEM IN MARCH WHEN A NEWSPAPER HEADLINE DECLARED SASCHA CAN BE CALLED SASCHA ACTING AS HIS OWN LAWYER MR WITTE HAD FOUGHT DECISIONS BY A LOCAL BUREAU OF VITAL STATISTICS WHICH GERMANS CALL THE REGISTRY BY THE STATE OF BREMEN'S INTERIOR DEPARTMENT AND BY A COURT HE FINALLY WON ON APPEAL GERMAN OFFICIALS THINK KIDS NEED TO BE PROTECTED FROM THEIR PARENTS RAINER AHNERT WHO RUNS A BERLIN REGISTRY OFFICE SAYS PARENTS WHO CHOOSE ODDBALL NAMES ARE EMPHASIZING THEIR OWN FREEDOM AND HAVEN'T THOUGHT ABOUT THE CHILD MR AHNERT SAYS NAMES LIKE GOTT GOD ZUFALL COINCIDENCE AND BIERSTUEBL LITTLE BEER BAR ARE RECENT REJECTED EXAMPLES OF THIS PARENTAL WILLFULNESS CURIOUSLY ONE NAME THAT MANY GERMANS BELIEVE IS VERBOTEN ADOLF ISN'T GUENTHER BAHRDT WHO IS IN CHARGE OF ANOTHER BERLIN REGISTRY SAYS THE NAME CAN'T BE DONE AWAY WITH OTHERWISE WE'D HAVE TO FORBID NAMES LIKE KHOMEINI AND THOSE OF OTHER BAD STATESMEN THAT COULDN'T BE BUT IMPORTED NAMES ESPECIALLY AMERICAN ONES ARE A MAJOR SOURCE OF TROUBLE SAMANTHA MR AHNERT RECALLS NEARLY ENJOYED A POPULARITY BOOM IN THE '60S AND '70S BECAUSE IT WAS THE NAME OF THE CHARACTER ELIZABETH MONTGOMERY PLAYED ON THE TV SERIES BEWITCHED BUT GERMAN MOTHERS WANTED TO SPELL IT CEMENTA REGISTRY OFFICIALS LINGUISTS AS THEY ARE FIGURED THE NAME WOULD GO OVER LIKE A TON OF BRICKS IN OTHER COUNTRIES AND REFUSED TO ALLOW THE ECCENTRIC SPELLING ON THE OTHER HAND SAMANTHA SPELLED THAT WAY WOULD HAVE BEEN ALL RIGHT WITH THEM AT THE MOMENT ONE OF THE FIVE MOST POPULAR NAMES FOR NEWBORN BABY BOYS IS KEVIN A NAME COMPLETELY ALIEN TO GERMANY BUT NOW ALL THE RAGE BECAUSE OF KEVIN COSTNER AND BECAUSE OF A MOVIE CALLED KEVIN ALLEIN ZU HAUS THE TITLE IN THE STATES WAS HOME ALONE CELEBRITY DOESN'T ALWAYS DO THE TRICK A COUPLE LAST YEAR WERE TOLD THEY COULDN'T NAME THEIR DAUGHTER WHOOPY AFTER THE ACTRESS AND COMIC WHOOPI GOLDBERG REGISTRY OFFICIALS KNEW THAT MAKING WHOOPEE IS ENGLISH FOR LETTING THE SOW RUN WILD TASTE OF COURSE ISN'T ALWAYS THE ISSUE AND MANY PARENTS ARE ANGRY ABOUT THE ARBITRARINESS OF IT ALL A REAL INTRUSION BY THE STATE IS HOW VOLKER MALINKA DESCRIBES HIS 1987 RUNIN WITH THE NAMEAPPROVAL PEOPLE MR MALINKA AND HIS WIFE WANTED TO CALL THEIR SON HOLLAS AFTER A CHARACTER IN A FOREIGN FILM THEY HAD SEEN MR MALINKA A JUDGE COULDN'T PROVE THAT HOLLAS WAS IN COMMON USE ANYWHERE SO THE NAME WAS REJECTED THE MALINKAS THWARTED NAMED THE BOY MAXIMILIAN OTHER PARENTS KNOWING THE ROPES HAVE BEEN MORE RESOURCEFUL ANNE ENGELS A GEOLOGY STUDENT IN BONN DECIDED AFTER HEARING THE WORD PEONY MANY TIMES WHILE ON VACATION IN HAWAII THAT SHE WOULD CALL HER DAUGHTER SARA PIONI SHE AND THE BABY'S FATHER PERSUADED A FRIEND WHO WORKED AT THE PAKISTANI EMBASSY TO PRODUCE A LETTER SAYING THAT PIONI IS A RECOGNIZED NAME IN PAKISTAN THE PLOY WORKED OLAF WITTE'S EXPERIENCE ONE MIGHT THINK SHOULD ESTABLISH ONCE AND FOR ALL THE MASCULINITY OF THE NAME SASCHA BUT WHO KNOWS IN HIS LEGAL BRIEFS MR WITTE CITED PRECEDENT SEVERAL SUITS IN WHICH GERMAN PARENTS HAD WON THE RIGHT TO NAME SONS SASCHA WITHOUT THE ENCUMBRANCE OF SOME MACHO MIDDLE NAME FURTHERMORE MR WITTE PRETTY WELL PROVED THAT THERE IS NOTHING ANDROGYNOUS ABOUT THE NAME SASCHA THOUSANDS OF GERMAN MALES ARE NAMED SASCHA HIS RESEARCH FOUND IN 1975 SASCHA WAS ON THE TOP 10 LIST OF THE MOST POPULAR BOYS' NAMES IN WEST GERMANY IT WEIGHED IN AT NO 9 INDEED MR WITTE COULD FIND JUST EIGHT RECORDED INSTANCES IN 50 YEARS OF GIRLS NAMED SASCHA 9307150074 930715 ECONOMY SALES OF NORTH AMERICANBUILT VEHICLES EASED IN EARLY JULY AFTER JUNE'S SURGE BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS EASED IN EARLY JULY AS THE AUTO INDUSTRY'S RECOVERY SLOWED FOLLOWING A LATE JUNE SURGE CARS AND LIGHT TRUCKS SOLD AT A SEASONALLY ADJUSTED ANNUAL RATE OF 117 MILLION VEHICLES IN THE FIRST 10 DAYS OF JULY THAT WAS DOWN FROM THE 121 MILLION PACE IN THE PREVIOUS 30DAY PERIOD BUT UP CONSIDERABLY FROM THE 101 MILLION PACE A YEAR EARLIER OVERALL AMERICANS BOUGHT 289191 NORTH AMERICANBUILT VEHICLES IN EARLY JULY UP 146 FROM THE 252406 SOLD IN THE 1992 PERIOD THIS IS A VERY VERY SLOW RECOVERY SAID PHILIP FRICKE SHEARSON LEHMAN BROTHERS AUTO ANALYST WE'RE SEEING IMPROVEMENT WHICH IS VERY ENCOURAGING BUT THE LEVEL OF SALES ARE MEDIOCRE AT BEST MOREOVER AUTO ANALYSTS SAY IT'S INCREASINGLY CLEAR THAT AUTO MAKERS ARE STRUGGLING TO LURE NERVOUS CONSUMERS BY USING AGGRESSIVE LEASE PROGRAMS AND OTHER PRICECUTTING STRATEGIES AUTO MAKERS COUNT VEHICLE LEASES AS NEWCAR SALES ARTHUR SPINELLA VICE PRESIDENT AND GENERAL MANAGER OF CNW MARKETING/RESEARCH BANDON ORE SAID A RECENT SURVEY SHOWED THAT MORE THAN 69 OF THOSE WHO LEASED A CAR IN THE FIRST HALF OF 1993 WOULDN'T HAVE BOUGHT A NEW VEHICLE IF LEASE PROGRAMS WEREN'T AVAILABLE THAT AMOUNTS TO 11 MILLION PEOPLE WHO WOULD HAVE OTHERWISE STAYED OUT OF THE MARKET IF WE DIDN'T HAVE INCENTIVES THE REBOUND PROBABLY WOULDN'T BE AS STRONG AS IT IS RIGHT NOW SAID CHRISTOPHER CEDERGREN AUTOPACIFIC GROUP INC'S AUTO ANALYST LEASING IS HELPING TO FUEL THE REBOUND THE BIG THREE AUTO MAKERS ALL POSTED HEALTHY SALES GAINS IN THE LATEST 10DAY PERIOD FORD MOTOR CO SAID ITS TOTAL VEHICLE SALES CLIMBED 127 IN EARLY JULY LARGELY FUELED BY A 329 JUMP IN NORTH AMERICANBUILT TRUCK SALES FROM A YEAR EARLIER FORD'S SALES OF NORTH AMERICANBUILT CARS FELL 06 COMPARED WITH A YEAREARLIER PERIOD WEIGHTED WITH SALES TO CARRENTAL COMPANIES ADVERSE WEATHER CONDITIONS ALSO HURT FORD SAID GENERAL MOTORS CORP'S TOTAL VEHICLE SALES ROSE 31 IN THE JULY 110 PERIOD HELPED BY A 159 CLIMB IN DOMESTIC TRUCK SALES CHRYSLER CORP'S SALES FOR THE PERIOD SURGED 40 FROM A YEAR EARLIER ACCORDING TO WARD'S AUTOMOTIVE REPORTS CHRYSLER RELEASES ITS SALES ON A MONTHLY BASIS ONLY SEPARATELY GM SAID IT WILL DELAY BY THREE MONTHS THE INTRODUCTION OF A RESTYLED 1995 CHEVROLET S10 BLAZER SPORT UTILITY VEHICLE A PRODUCT THAT IS KEY TO GM'S EFFORTS TO REGAIN SHARE IN THAT HIGHLY PROFITABLE SEGMENT GM HAD HOPED TO LAUNCH THE NEW S10 BLAZER IN MAY 1994 BUT YESTERDAY A COMPANY SPOKESWOMAN SAID ENGINEERS CAN'T FINISH DEBUGGING THE NEW MODEL BY THEN AND NOW PLAN TO LAUNCH THE TRUCK NEXT JULY JAPANESE AUTO MAKERS WERE BIG GAINERS IN THE LATEST 10DAY PERIOD HONDA MOTOR CO WHOSE SALES HAVE BEEN BATTERED BY STEEP DECLINES IN ACCORD SALES POSTED A 174 JUMP IN EARLY JULY SALES SALES OF ACCORDS ROSE 124 IN THE JULY 110 PERIOD ACCORD SALES HAVE BEEN GETTING STRONGER EVERY MONTH A HONDA SPOKESMAN SAYS BUT HONDA HASN'T ADDED NEW INCENTIVES NISSAN MOTOR CO WHICH HAS BEEN PAYING CASH INCENTIVES TO ITS DEALERS TO FURTHER BOOST ALREADY STRONG SALES OF ITS VEHICLES REPORTED A 94 SURGE IN TOTAL VEHICLE SALES MAZDA MOTOR CO'S TOTAL VEHICLE SALES JUMPED 742 TOYOTA MOTOR CORP'S VEHICLE SALES CLIMBED 65 AND MISTUBISHI MOTOR CORP'S SALES MORE THAN DOUBLED 9307150073 930715 HEALTH MANY WOMEN AREN'T GETTING PREVENTIVE CARE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL MANY US WOMEN AREN'T RECEIVING BASIC PREVENTIVE HEALTH SERVICES A SURVEY SHOWS WHILE FEWER WOMEN LACK HEALTH INSURANCE THAN MEN 13 OF THE FEMALES SURVEYED COMPARED WITH 18 OF THE MALES A GREATER PORTION OF WOMEN ARE FAILING TO GET NEEDED CARE THE POLL FOUND IN PARTICULAR WOMEN AREN'T RECEIVING BASIC TESTS TO SCREEN FOR CERVICAL CANCER BREAST CANCER AND OTHER HEALTH PROBLEMS THAT CAN BE SUCCESSFULLY TREATED WITH EARLY DETECTION THE SURVEY CONDUCTED BY LOUIS HARRIS & ASSOCIATES FOR THE COMMONWEALTH FUND A NEW YORK PHILANTHROPY POLLED 2500 WOMEN AND 1000 MEN AGED 18 AND OVER ON THEIR PHYSICAL AND MENTAL HEALTH USE OF MEDICAL SERVICES AND HEALTH COVERAGE IT FOUND THAT IN THE PAST YEAR OVERALL 13 OF WOMEN SAID THEY DIDN'T GET NEEDED MEDICAL CARE WITHIN THE PAST YEAR COMPARED WITH 9 OF MEN THE AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS RECOMMENDS THAT WOMEN GET PAP SMEARS AND PELVIC AND CLINICAL BREAST EXAMS ONCE A YEAR THAT WOMEN IN THEIR 40S HAVE MAMMOGRAMS EVERY OTHER YEAR AND THAT WOMEN IN THEIR 50S HAVE MAMMOGRAMS ANNUALLY I'M CERTAINLY CONCERNED THAT IN 1993 THE MESSAGE HASN'T GOTTEN OUT MORE THOROUGHLY SAYS WILLIAM ANDREWS A NORFOLK VA PHYSICIAN WHO IS PRESIDENTELECT OF THE SOCIETY OF OBSTETRICIANS AND GYNECOLOGISTS THEY ARE TAKING OBVIOUS RISKS THERE ARE PREVENTABLE PROBLEMS THAT PEOPLE ARE GETTING BECAUSE THEY ARE NOT GETTING THE CARE THAT'S AVAILABLE AND THEY SHOULD BE RECEIVING THE NUMBER OF WOMEN OF ALL AGES WHO AREN'T PRACTICING GOOD BASIC PREVENTIVE CARE IS ALARMING SAYS ELLEN FUTTER CHAIRWOMAN OF THE COMMONWEALTH FUND'S COMMISSION ON WOMEN'S HEALTH ONE OF THE MAIN REASONS REPORTED IS THE LACK OF INFORMATION FROM THEIR PHYSICIAN INCLUDING THE ABSENCE OF COUNSELING TOO MANY WOMEN SIMPLY DON'T KNOW WHAT THEY SHOULD BE DOING TO PROTECT OR BETTER THEIR OWN HEALTH COST WAS ANOTHER REASON THE PRICE OF SCREENINGS WHICH AREN'T REIMBURSED UNDER SOME PRIVATE HEALTH PLANS WAS THE REASON MOST FREQUENTLY CITED FOR NOT GETTING PREVENTIVE SERVICES TWENTYNINE PERCENT OF RESPONDENTS LISTED COST AS A REASON BUT 23 OF THE WOMEN SAID THEIR PHYSICIANS NEVER SUGGESTED OR DISCUSSED THE TESTS WITH THEM BECAUSE OF COST CONCERNS WOMEN ENROLLED IN HEALTH MAINTENANCE ORGANIZATIONS WHICH GENERALLY COVER ALL NECESSARY MEDICAL SERVICES INCLUDING SCREENINGS AND ANNUAL CHECKUPS FOR A SET ANNUAL FEE WERE SLIGHTLY MORE LIKELY TO GET THE RECOMMENDED PREVENTIVE CARE LOWINCOME WOMEN WERE LESS LIKELY TO GET PREVENTIVE CARE THAN FINANCIALLY WELLOFF WOMEN BUT A SURPRISING NUMBER OF BETTEROFF WOMEN WERE GOING WITHOUT NECESSARY SCREENINGS FOR EXAMPLE 23 OF WOMEN WITH ANNUAL INCOMES OF MORE THAN 50000 HADN'T HAD A PAP SMEAR IN THE PAST YEAR THE FIGURE WAS 51 FOR WOMEN WITH ANNUAL INCOMES BETWEEN 7501 AND 15000 AT A WASHINGTON NEWS CONFERENCE UNVEILING THE SURVEY RESULTS SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA SAID THE FINDINGS SHOULD BE IMPORTANT IN HELPING THE CLINTON ADMINISTRATION CRAFT ITS PROPOSAL TO GUARANTEE HEALTH COVERAGE TO ALL AMERICANS AND CONTROL MEDICAL COSTS AMONG THE SERVICES THE ADMINISTRATION HAS PLEDGED TO INCLUDE IN THE BASIC HEALTH BENEFITS PACKAGE ARE PREVENTIVE SERVICES LIKE MAMMOGRAMS PAP SMEARS AND CHILDHOOD IMMUNIZATIONS THE SURVEY ALSO SHOWED THAT VIOLENCE AND DEPRESSION ARE PERVASIVE IN MANY WOMEN'S LIVES TO ME THE THING THAT WAS MOST SURPRISING AND DEPRESSING WERE THE CHILDHOOD ABUSE RATES SAYS KAREN DAVIS EXECUTIVE VICE PRESIDENT OF THE COMMONWEALTH FUND AND A FORMER FEDERAL HEALTH OFFICIAL TEN PERCENT OF THE WOMEN SURVEYED COMPARED WITH 2 OF THE MEN REPORTED BEING SEXUALLY ABUSED AS CHILDREN MOST OFTEN BY A CLOSE RELATIVE SEVEN PERCENT OF THE WOMEN SURVEYED WHO WERE MARRIED OR LIVING WITH SOMEONE AS A COUPLE SAID THEY WERE PHYSICALLY ABUSED BY THEIR SPOUSE OR PARTNER WITHIN THE PAST YEAR 37 SAID THEY WERE VERBALLY OR EMOTIONALLY ABUSED OVERALL 2 OF THE WOMEN SURVEYED SAID THEY HAD BEEN RAPED WITHIN THE PAST FIVE YEARS AND 8 HAD BEEN VICTIMS OF ROBBERIES MUGGINGS OR ASSAULT WOMEN ARE VASTLY MORE LIKELY TO SUFFER FROM SYMPTOMS OF DEPRESSION THAN MEN THE SURVEY INDICATES BASED ON RESPONSES TO SIX QUESTIONS REGARDING FEELING DEPRESSED ABILITY TO SLEEP LIFE ENJOYMENT CRYING SPELLS SADNESS AND FEELING DISLIKED 40 OF WOMEN WERE DEEMED TO HAVE EXPERIENCED SEVERE DEPRESSION WITHIN THE PREVIOUS WEEK COMPARED WITH 26 OF MEN YOUNGER WOMEN WERE MORE LIKELY THAN OLDER WOMEN TO FEEL DEPRESSED THE SURVEY ALSO CHRONICLES DISSATISFACTION AMONG WOMEN OVER THE MEDICAL SYSTEM FORTYONE PERCENT OF WOMEN SAID THEY HAD CHANGED PHYSICIANS AT SOME TIME BECAUSE THEY WERE DISSATISFIED WITH THE DOCTOR ONLY 27 OF MEN SAID THEY HAD DONE SO THE LEADING REASON WOMEN SWITCHED DOCTORS WAS COMMUNICATIONS PROBLEMS TWENTYFIVE PERCENT OF WOMEN REPORTED THEY HAD BEEN TALKED DOWN TO BY A PHYSICIAN COMPARED WITH 12 OF MEN 9307150072 930715 TECHNOLOGY ALYESKA PIPELINE SERVICE ACKNOWLEDGES SAFETY FLAWS WASHINGTON ALYESKA PIPELINE SERVICE CO ACKNOWLEDGED TO A CONGRESSIONAL PANEL THAT ITS QUALITY CONTROL SYSTEM FOR MONITORING PROBLEMS ALONG THE TRANSALASKA PIPELINE IS FLAWED DAVID PRITCHARD ALYESKA'S NEW PRESIDENT ALSO SAID THAT SEVERAL POTENTIAL SAFETY AND ENVIRONMENTAL PROBLEMS CITED BY WHISTLE BLOWERS BUT INITIALLY DENIED BY ALYESKA'S TOP MANAGEMENT IN FACT EXIST AND ARE NOW BEING CORRECTED MR PRITCHARD'S COMMENTS ALONG WITH OTHER NEW EVIDENCE OF ALLEGED ALYESKA MISDEEDS THAT EMERGED YESTERDAY AT A HEARING BEFORE THE HOUSE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATION WILL LIKELY FUEL CALLS FOR INCREASED FEDERAL SCRUTINY OF ALYESKA ALYESKA IS THE CONSORTIUM OWNED BY EXXON CORP AND OTHER OIL COMPANIES THAT RUN THE PIPELINE AND THE OIL TANKER LOADING FACILITY AT VALDEZ ALASKA ALYESKA HAS BEEN UNDER ALMOST CONSTANT FIRE FROM CONGRESSIONAL CRITICS ENVIRONMENTALISTS AND WHISTLE BLOWERS IN RECENT MONTHS PRIMARILY FOR ITS FIRINGS OF SEVERAL INSPECTORS AND OTHER EMPLOYEES WHO RAISED SAFETY AND ENVIRONMENTAL CONCERNS THE COMPANY RECENTLY SETTLED SIX COMPLAINTS BROUGHT BY SIX WHISTLE BLOWERS FOR UNLAWFUL DISMISSAL THE COMPANY SETTLED THE CASES SHORTLY AFTER THE US LABOR DEPARTMENT RULED THAT IT HAD ILLEGALLY FIRED ONE OF THEM 9307150071 930715 MEMOS REVEAL PRUDENTIAL SALES TACTICS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIALBACHE SECURITIES INC SYSTEMATICALLY URGED ITS BROKERS TO SELL A WIDE RANGE OF HIGHRISK LIMITED PARTNERSHIPS TO INVESTORS SEEKING SAFETY ACCORDING TO INTERNAL SALES DOCUMENTS UNCOVERED BY LAWYERS FOR ANGRY INVESTORS THE SALES LITERATURE BY PRUDENTIALBACHE NOW KNOWN AS PRUDENTIAL SECURITIES INC SURFACES AS THE FIRM APPEARS CLOSE TO A SETTLEMENT WITH FEDERAL AND STATE REGULATORS INVESTIGATING WHETHER THE NATION'S FOURTHLARGEST BROKERAGE FIRM IMPROPERLY SOLD LIMITED PARTNERSHIPS IN THE 1980S THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT COULD REACH A PRELIMINARY AGREEMENT IN PRINCIPLE WITH REGULATORS THIS SUMMER AND COULD PAY AS MUCH AS 400 MILLION AS PART OF THE SETTLEMENT PEOPLE FAMILIAR WITH THE MATTER SAID PRUDENTIAL SECURITIES HAS TRIED TO CONVINCE REGULATORS THAT THE PARTNERSHIPS' PROBLEMS STEMMED PRIMARILY FROM THE MISDEEDS OF INDIVIDUAL ROGUE BROKERS OR PARTNERSHIP EXECUTIVES IN VARIOUS BRANCHES NOT FROM ANY COMPANYWIDE ABUSES PEOPLE FAMILIAR WITH THE INQUIRY SAID BUT THE RECENTLY UNCOVERED DOCUMENTS INCLUDING SALES SCRIPTS AND PROMOTIONAL BROCHURES ON 89 REAL ESTATE ENERGY COMMODITY CABLE TELEVISION AND OTHER LIMITED PARTNERSHIPS MOST OF WHICH HAVE PLUNGED IN VALUE INDICATE A PRODDING OF PRUDENTIAL BROKERS TO SELL THE PARTNERSHIPS TO INVESTORS WITH FAR LESS APPETITE FOR SUCH RISKY VENTURES INCLUDING THOSE FAVORING CERTIFICATES OF DEPOSIT AND MONEYMARKET FUNDS IT BECOMES VIRTUALLY IMPOSSIBLE FOR ANYONE TO LEGITIMATELY REACH THE CONCLUSION THAT IT'S A BAD BROKER OR A SERIES OF BAD BROKERS WHO MISLED PRUDENTIAL'S PARTNERSHIP INVESTORS SAYS J BOYD PAGE OF PAGE & BACEK AN ATLANTA LAW FIRM REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL THE NEWLY UNCOVERED DOCUMENTS SHOW NOTHING OTHER THAN A SYSTEMATIC FRAUD MR PAGE ASSERTS PRUDENTIAL SECURITIES' EXECUTIVES DENY ANY COMPANYWIDE EFFORT TO DEFRAUD INVESTORS CERTAINLY THERE WERE SOME INTERNAL PIECES THAT WERE DISTRIBUTED TO SALESMEN IN SOME REGIONS AT SOME TIMES THAT ARE DEFICIENT SAYS LOREN SCHECHTER PRUDENTIAL SECURITIES' GENERAL COUNSEL BUT ANY SUGGESTION THAT WE WERE SELLING LIMITED PARTNERSHIPS AS CD EQUIVALENTS IS REALLY BASELESS HE SAID WE'VE NEVER SAID THAT EVERYTHING WAS PERFECT BUT WE CERTAINLY DON'T BELIEVE THERE WAS A SYSTEMATIC FRAUD OR ANYTHING LIKE THAT MR SCHECHTER ADDED PRUDENTIAL WAS AMONG WALL STREET'S BIGGEST MARKETERS OF LIMITED PARTNERSHIPS THE FIRM SOLD PARTNERSHIP UNITS ORIGINALLY VALUED AT 6 BILLION TO 360000 INVESTORS IN 650 PARTNERSHIPS IN THE 1980S MANY OF THE PARTNERSHIPS HAVE SOURED AND TRIGGERED LAWSUITS BY INVESTORS WHO CLAIM THAT PRUDENTIAL MISLED THEM ON THE PARTNERSHIPS' RISKS AND RETURNS PRUDENTIAL SECURITIES RECENTLY YANKED A SETTLEMENT OFFER IN A CLASSACTION CASE BROUGHT BY 130000 ENERGYPARTNERSHIP INVESTORS THE FIRM PLANS TO OFFER INVESTORS A REVISED SETTLEMENT OF ABOUT 100 MILLION PEOPLE FAMILIAR WITH THE FIRM SAID AMONG THE INTERNAL SALES DOCUMENTS WERE SCRIPTS OF SELLING TACTICS GIVEN TO PRUDENTIAL BROKERS WHO WERE PEDDLING PARTNERSHIPS TO FRIENDLIES WHOM IT DESCRIBED AS ASKING & SHOWING INVESTORS STRESS SAFETY AND GUARANTEES GIVE YOUR PERSONAL ASSURANCES COUNSELS A FEBRUARY 1987 SALES PAPER AMONG THE PHRASES TO USE TO LURE INVESTORS TO PARTNERSHIPS THE DOCUMENT SAYS IT'S ALMOST GUARANTEED SO YOU CAN FEEL SAFE ABOUT IT PRUDENTIAL SECURITIES' MR SCHECHTER SAYS THE DOCUMENT WAS PREPARED BY AN OUTSIDE FIRM AND USED AT A SMALL CONFERENCE WITH JUST A HANDFUL OF PEOPLE PRESENT THAT WAS AN EMBARRASSMENT AND WRONG MR SCHECHTER SAID IT WAS NOT A DOCUMENT THAT WAS REPRESENTATIVE OF OUR SALESPRACTICE POLICY DOZENS OF OTHER SALES DOCUMENTS TELL PRUDENTIAL BROKERS TO STRESS SAFETY WHEN SELLING PARTNERSHIPS MARKETED BY THE FIRM IN AN AUGUST 1988 SALES SHEET TO SELL THE PB/CNL NATIONAL NET LEASE PROPERTIES PARTNERSHIP PRUDENTIAL TARGETED AMONG OTHERS CONSERVATIVE CLIENTS WHO HAVE CDS AND ARE CONCERNED ABOUT INFLATION FIRST CAPITAL SERIES 12 WAS AIMED AT AMONG OTHERS RETIREES WHO WANT TO PRESERVE CAPITAL GROWTH SUITE INVESTORS WAS TARGETED TOWARD AMONG OTHERS CLIENTS WHO WANT A GUARANTEED RETURN OF PRINCIPAL THREE OF THE 89 PARTNERSHIPS FOR WHICH SALES LITERATURE RECENTLY SURFACED ARE PROFITABLE THE AVERAGE DROP IN VALUE FOR THE REST IS ABOUT 70 ACCORDING TO PLAINTIFFS' LAWYERS SOME PRUDENTIAL BROKERS WERE URGED TO GET THEIR CLIENTS TO SWITCH OUT OF CDS THAT MATURED HOW ABOUT OFFERING THOSE SAME SAFETYCONSCIOUS INVESTORS A HIGHERYIELDING ALTERNATIVE SUGGESTED AN INTERNAL SALES SHEET FROM PRUDENTIAL'S SOUTHWEST REGION THERE WILL BE 257 MILLION IN CDS MATURING AT PRUDENTIALBACHE WITHIN THE NEXT TWO MONTHS THE UNDATED DOCUMENT SAID CHECK YOUR BOOK 9307150070 930715 BUSINESS BRIEF CHARLES SCHWAB'S SECONDQUARTER NET JUMPED 71 TO RECORD 316 MILLION DISCOUNT BROKER CHARLES SCHWAB CORP SAID NET INCOME SURGED 71 IN THE SECOND QUARTER TO A RECORD 316 MILLION OR 53 CENTS A SHARE AS BROKERAGE HOUSES CONTINUED TO REPORT RECORD PROFITS A YEAR EARLIER SAN FRANCISCOBASED SCHWAB HAD NET OF 185 MILLION OR 31 CENTS A SHARE REVENUE WAS 232 MILLION UP 31 FROM 177 MILLION A YEAR EARLIER EARLIER THIS WEEK MERRILL LYNCH & CO AND PAINEWEBBER GROUP INC POSTED RECORD PROFITS FOR THE FIRST HALF OF 1993 AND STRONG SECONDQUARTER RESULTS CONTINUING MORE THAN TWO YEARS OF INCREASES SCHWAB'S RESULTS FAR EXCEEDED ANALYSTS' EXPECTATIONS OF 40 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC DESPITE THE SOLID EARNINGS HOWEVER SCHWAB'S STOCK FELL 1375 A SHARE TO 27625 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING SCHWAB'S STOCK DECLINE ALONG WITH SIMILAR STOCK DROPS AT MERRILL LYNCH AND DEAN WITTER DISCOVER & CO SUGGEST THAT THE RECENT POWERFUL RALLY IN BROKERAGE SHARES COULD BE NEARING AN END SOME ANALYSTS SAID AVERAGE DAILY TRADING VOLUME BY SCHWAB CUSTOMERS WAS 29230 TRADES IN THE SECOND QUARTER ONETHIRD HIGHER THAN THE 21830 TRADES AVERAGED IN THE YEAREARLIER PERIOD MANY INDUSTRY OBSERVERS USE SCHWAB'S MONTHLY TRADING ACTIVITY AS A GAUGE ON INDIVIDUAL INVESTORS' MARKET SENTIMENT DURING THE FIRST HALF CUSTOMERS OPENED MORE THAN 350000 ACCOUNTS THE FIRM SAID WE HAVE SEEN JUST AN ONSLAUGHT OF NEW ACCOUNTS AND THE PRODUCT OF CHOICE CLEARLY IS MUTUAL FUNDS SAID CHAIRMAN CHARLES R SCHWAB IN AN INTERVIEW SCHWAB SAID SOME OF ITS NEW PRODUCTS ARE THRIVING ITS NOTRANSACTIONFEE MUTUAL FUNDS WHICH ALLOW INVESTORS TO TRADE MORE THAN 200 MUTUAL FUNDS IN 25 OUTSIDE FUND COMPANIES WITH NO LOAD OR SALES FEE HAS ATTRACTED ABOUT 4 BILLION IN ASSETS SINCE BEING LAUNCHED A YEAR AGO THE FIRM SAID CLIENT ACCOUNTS UNDER SCHWAB'S CONTROL HAVE SURGED TO A RECORD 792 BILLION UP 21 FROM YEAR END SCHWAB ALSO PLANS TO LAUNCH SEVERAL ADDITIONAL PROPRIETARY OR INHOUSE MUTUAL FUNDS THIS YEAR THE FIRM PLANS TO LAUNCH AN INTERNATIONAL INDEX FUND LATER THIS MONTH MR SCHWAB PREDICTED THAT BUSINESS WILL REMAIN ROBUST FOR THE SECURITIES INDUSTRY THIS YEAR AND BEYOND WE'LL CONTINUE TO SEE A HUGE INFLUX OF PEOPLE MOVING AWAY FROM DEPOSITBASED SAVINGS INTO INVESTMENT PRODUCTS LIKE MUTUAL FUNDS HE SAID THAT IS CLEARLY A WAVE THAT IS NOT GOING TO DIMINISH FOR A NUMBER OF YEARS FOR THE FIRST SIX MONTHS SCHWAB HAD PROFIT OF 67 MILLION OR 113 A SHARE AN INCREASE OF 39 FROM 482 MILLION OR 81 CENTS A SHARE A YEAR EARLIER PERSHARE FIGURES REFLECT A 3FOR2 STOCK SPLIT IN 1993 REVENUE ROSE 18 TO 469 MILLION WHILE COMMISSION REVENUE ROSE 34 TO 136 MILLION 9307150069 930715 CORRECTIONS & AMPLIFICATIONS BST A HORMONE USED TO INCREASE THE PRODUCTION OF MILK IN CATTLE IS AWAITING APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION FOR USE IN THE US IN AN ARTICLE YESTERDAY IT WAS INCORRECTLY STATED THAT THE U S HAS A MORATORIUM ON THE USE OF THE HORMONE 9307150068 930715 ENTERPRISE GOVERNMENT WATCH SMALL BUSINESS KEEPS A CLOSE EYE ON DEFICITBILL TALKS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL BIG BUCKS ARE AT STAKE FOR SMALL BUSINESS IN BUDGET TALKS STARTING TODAY AS THE HOUSESENATE CONFERENCE COMMITTEE ATTEMPTS TO BRIDGE THE GAP IN THE TWO CHAMBERS' DEFICITREDUCTION BILLS SMALLBUSINESS GROUPS WILL BE LOBBYING FURIOUSLY FOR THE MOREGENEROUS TAX BREAKS CONTAINED IN THE HOUSE VERSION ONE PROVISION WOULD INCREASE THE LIMIT ON CAPITAL EXPENDITURES THAT SMALL COMPANIES CAN WRITE OFF FROM THEIR TAXES EACH YEAR TO 25000 COMPARED WITH THE SENATE'S PROPOSED 20500 THE CURRENT LIMIT IS 10000 ANOTHER HOUSE PROPOSAL WOULD CUT THE CAPITALGAINS TAX RATE IN HALF TO 14 FROM 28 FOR INVESTMENTS THAT ARE HELD FOR FIVE YEARS OR MORE THE SENATE BILL HAS NO SUCH PROVISION SUCH A REDUCTION WOULD BE A BOON TO SMALL BUSINESSES SUCH AS HIGHTECHNOLOGY CONCERNS THAT NEED TO ATTRACT LONGTERM INVESTORS ACCORDING TO WHITE HOUSE OFFICIALS THE BUDGETBILL BATTLE WILL BE TOPIC A AT A MEETING PRESIDENT CLINTON PLANS NEXT WEEK WITH SMALLBUSINESS OWNERS THE LUNCHEON WILL BE THE FIRST OF REGULAR SESSIONS THAT MR CLINTON RECENTLY PROMISED TO HOLD WITH SMALLBUSINESS PEOPLE THE ADMINISTRATION IS COUNTING ON SMALL BUSINESS AS PART OF A COALITION TO PASS THE WHOLE BUDGET PACKAGE JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNCIL AN ALLIANCE OF 100 TRADE GROUPS BELIEVES THE BIGGER WRITEOFF FOR EQUIPMENT AND A CUT IN THE CAPITALGAINS TAX RATE ARE DOABLE BECAUSE THEY'D HAVE A LIMITED IMPACT ON THE BUDGET AND MAINLY HELP SMALL BUSINESS BUT LOBBYISTS ARE LESS CONFIDENT SMALL BUSINESS WILL GET ITS WAY ON WHAT HE CALLS CERTAIN BIGTICKET ITEMS WHERE INTERESTS OTHER THAN SMALL BUSINESS WILL AFFECT THE OUTCOME FOR EXAMPLE RAISING THE TOP PERSONALINCOMETAX RATES IS A CRUCIAL PART OF MR CLINTON'S TAX PLAN THE INCREASE WOULD HIT SOME SMALLBUSINESS OWNERS WHO PAY TAXES ON COMBINED PERSONAL AND BUSINESS INCOME AT THE INDIVIDUAL RATE AS SUBCHAPTER S CORPORATIONS PARTNERSHIPS OR SOLE PROPRIETORS CITIZENS FOR A SOUND ECONOMY A BUSINESSBACKED COALITION IS SPOTLIGHTING SMALL BUSINESS FEARS TO FIGHT THE TAX BOOST A NEW ADVERTISING CAMPAIGN BY THE GROUP CALLS THE TAX HIKE ON SMALL BUSINESSES A JOB TAX BUT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS CONCEDES THAT SMALL BUSINESS FACES AN UPHILL BATTLE ON TAX INCREASES WITH HOUSESENATE CONFEREES THEY'RE PRETTY MUCH LOCKED INTO THE RATES SAYS DJ GRIBBIN A FEDERATION LOBBYIST IT'S A HARD HARD FIGHT TO CHANGE THE RATES BECAUSE OF THE AMOUNT OF MONEY INVOLVED THE CLINTON ADMINISTRATION DISPUTES THAT MANY SMALLBUSINESS OWNERS WILL BE HURT AN OWNER WOULD HAVE TO HAVE AN INCOME OF 250000 TO PAY THE TOP RATE SEVERAL OTHER TAX ITEMS FILL OUT THE LIST OF WHAT'S IMPORTANT TO ENTREPRENEURS SMALL BUSINESSES GENERALLY OPPOSE NEW ENERGY TAXES OR HIGHER GASOLINE TAXES BUT CONFEREES WILL HAVE TO FIND ADDED REVENUES OR BUDGET CUTS TO PAY FOR ANY SMALLBUSINESS TAX BREAKS RESTAURANT OWNERS ARE LOBBYING AGAINST A CUT IN THE TAX DEDUCTION FOR MEALS AND ENTERTAINMENT TO 50 FROM 80 CONTAINED IN BOTH THE HOUSE AND SENATE BILLS STREAMLINING SQUEEZES SMALL SUBCONTRACTORS AT FEDERAL AGENCIES SEVERAL SMALLBUSINESS GROUPS CHARGE THAT THE GROWING FEDERAL PRACTICE OF BUNDLING RELATED CONTRACTS INSTEAD OF TAKING BIDS SEPARATELY IS LEAVING MANY SMALL CONCERNS OUT IN THE COLD ESPECIALLY MINORITY COMPANIES THE SITUATION OCCURS WHEN A MILITARY BASE FOR EXAMPLE DECIDES TO SAVE TIME BY AWARDING ONE BIG MAINTENANCE CONTRACT INSTEAD OF HIRING SEPARATE ROOFERS ELECTRICIANS AND LANDSCAPERS UNDER THE SYSTEM SOME SUBCONTRACTS COULD BE TOO LARGE FOR SMALL BUSINESSES TO PERFORM THE HOUSE SMALL BUSINESS COMMITTEE'S PROCUREMENT SUBCOMMITTEE HELD ITS SECOND HEARING ON THE ISSUE THIS WEEK BUT THE MATTER WILL GET MORE ATTENTION THIS FALL WHEN CONGRESS CONSIDERS GENERAL REFORM OF THE GOVERNMENT'S PURCHASING RULES STREAMLINING GOVERNMENT RULES IS GOOD BUT IT SHOULDN'T BE DONE ON THE BACKS OF SMALL BUSINESS OR JUST TO MAKE THINGS MORE CONVENIENT FOR THE GOVERNMENT SAYS COLETTE NELSON EXECUTIVE DIRECTOR OF THE AMERICAN SUBCONTRACTORS ASSOCIATION TOXICWASTE SITES HAVE PLENTY OF ROOM FOR THE LITTLE GUY A NEW STUDY BY THE ENVIRONMENTAL PROTECTION AGENCY SHOWS THAT SMALL COMPANIES ARE ACTIVE IN THE DECONTAMINATION BUSINESS AND COULD MAKE FURTHER INROADS BY UTILIZING AN INEXPENSIVE NEW METHOD FOR REMOVING POLLUTANTS THE EPA SAYS THAT ABOUT HALF OF THE COMPANIES OFFERING INNOVATIVE TECHNOLOGIES TO CLEAN UP WASTE HAVE FEWER THAN 50 EMPLOYEES AND ANNUAL REVENUES BELOW 8 MILLION AND SMALLER COMPANIES ACCOUNT FOR A SIGNIFICANT NUMBER OF VENDORS WITH FULLSCALE CLEANUP SYSTEMS RATHER THAN PILOT PROGRAMS OR LAB RESEARCH IN PROGRESS THE AGENCY'S REPORT AIMS TO FIND MARKETS FOR COMPANIES THAT OFFER NEW WAYS TO CLEAN UP WASTE SITES MOST GOVERNMENT CLEANUP PROGRAMS SEEK TO GET RID OF THREE BASIC CATEGORIES OF CONTAMINANTS SOLVENTS PETROLEUM PRODUCTS AND METALS THE EPA SAYS BUT SCIENTISTS HAVE FOUND THAT OLD TECHNOLOGIES THAT PUMPED OUT CONTAMINATED GROUND WATER AND SOIL FOR TREATMENT MISSED CONTAMINANTS IN HARDTOREACH ROCK FORMATIONS THE MOST FREQUENTLY USED NEW TECHNOLOGY IS SOILVAPOR EXTRACTION A PROCESS THAT USES VACUUM EQUIPMENT TO REMOVE VOLATILE CONTAMINANTS BUT ANOTHER POPULAR NEWER TECHNIQUE BIOREMEDIATION WHICH USES MICROORGANISMS TO DESTROY CONTAMINANTS DEPENDS MORE ON THE PROCESS USED INSTEAD OF EXPENSIVE EQUIPMENT THIS CHEAPER PROCESS ALLOWS SMALL COMPANIES EASIER ENTRY INTO THE MARKET SAYS THE EPA'S WALTER KOVALICK JR WHO HEADS THE OFFICE OF TECHNOLOGY INNOVATION AMONG OTHER THINGS THE REPORT WHICH IS AVAILABLE FROM THE NATIONAL TECHNICAL INFORMATION SERVICE FOR 1750 PLUS 3 HANDLING LISTS WHICH STATES HAVE THE MOST MONEY FOR THEIR HAZARDOUS WASTE CLEANUP PROGRAMS THE AGENCY ISSUED THE REPORT BECAUSE COMPANIES WERE SAYING THIS MARKET IS SO SPREAD OUT AND ASKING WHAT PROBLEMS DOES THE GOVERNMENT NEED TO SOLVE MR KOVALICK SAYS SMALL TALK THE SMALL BUSINESS ADMINISTRATION ISSUES A MARKETRESEARCH TOOL FOR EXPORTERS DETAILING THE MAIN PRODUCTS AND SERVICES IMPORTED OR EXPORTED BY PARTICULAR COUNTRIES ALMOST A THIRD OF 300 SMALLBUSINESS OWNERS SURVEYED RECENTLY BY THE KESSLER EXCHANGE A CALIFORNIABASED RESEARCH ORGANIZATION SAID THE COST OF HEALTHCARE REFORM COULD FORCE THEM TO SHUT DOWN COMPARED WITH 8 OF 300 ENTREPRENEURS POLLED WHO SAID SO IN APRIL 9307150067 930715 KEANE POSTS 23 RISE IN SECONDPERIOD NET DECLARES STOCK SPLIT BOSTON MASS KEANE INC REPORTED SECONDPERIOD SALES AND EARNINGS THAT WERE A RECORD FOR ANY QUARTER AND ALSO DECLARED A 3FOR2 STOCK SPLIT PAYABLE AUG 18 TO HOLDERS OF RECORD JULY 28 KEANE PROVIDES INFORMATION SYSTEMS SOFTWARE AND CONSULTING TO HOSPITALS AND LARGE CORPORATIONS CONTINUING TO BENEFIT FROM THE 40 MILLION JAN 1 ACQUISITION OF GENERAL ELECTRIC CO'S GE CONSULTING SERVICES KEANE IS COMFORTABLE WITH ANALYSTS' PROJECTIONS THAT FOR THE FULL YEAR NET INCOME PER SHARE WILL RISE MORE THAN 30 TO ABOUT 170 A SHARE FROM 63 MILLION OR 128 A SHARE LAST YEAR JOHN KEANE PRESIDENT AND CHIEF EXECUTIVE SAID MR KEANE ALSO AFFIRMED ANALYSTS' ESTIMATES THAT REVENUE FOR THE FULL YEAR WILL BE ABOUT 175 MILLION UP 76 FROM 993 MILLION KEANE REPORTED FOR ITS LATEST QUARTER THAT NET INCOME ROSE 23 TO 21 MILLION OR 41 CENTS A SHARE FROM 17 MILLION OR 34 CENTS A SHARE REVENUE ROSE 75 TO 434 MILLION FROM 248 MILLION MR KEANE SAID THAT THE ACQUISITION OF GE CONSULTING INCREASED EFFICIENCY HE SAID KEANE LAID OFF ABOUT 110 PEOPLE INCLUDING REDUNDANT BRANCH MANAGERS IN THE FIRST MONTH AFTER THE ACQUISITION HOWEVER PROFIT MARGINS HAVE DECLINED BECAUSE KEANE IS WRITING OFF THE ACQUISITION COST VERY AGGRESSIVELY OVER JUST FIVE YEARS WITHOUT THE ACQUISITION DEBT AND WRITEOFF COSTS KEANE'S PRETAX INCOME ROSE 115 IN THE SECOND QUARTER HE SAID MR KEANE SAID THAT BY THE END OF THE FIRST QUARTER THE TWO OPERATIONS HAD BEEN COMPLETELY MERGED OUR DEBT FROM THE ACQUISITION SHOULD BE COMPLETELY GONE BY THE END OF NEXT YEAR HE ADDED TO BUY GE CONSULTING KEANE WHICH HAD BEEN ALMOST DEBTFREE PAID 20 MILLION OF ITS OWN CASH AND BORROWED 11 MILLION FROM BANKS AND ISSUED NOTES TO GE TOTALING 9 MILLION 9307150066 930715 POLITICS & POLICY ADMINISTRATION READIES PROPOSALS ON PUBLIC HOUSING BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PREPARING LEGISLATION THAT WOULD SIGNIFICANTLY CHANGE THE NATION'S TROUBLED PUBLIC HOUSING PROGRAM AS WELL AS THE FEDERAL HOUSING ADMINISTRATION'S PROGRAMS FOR APARTMENT BUILDINGS AND SINGLEFAMILY HOMES THE LEGISLATION EXPECTED TO BE UNVEILED SOON IS SUBJECT TO LASTMINUTE CHANGES THE PROPOSALS IN FACT MAY BE SPLIT INTO TWO SEPARATE BILLS IN AN EFFORT TO PUT THE MULTIFAMILY AND PUBLICHOUSING PROPOSALS ON A FAST TRACK FOR CONGRESSIONAL APPROVAL THE FHA MULTIFAMILY PROPOSALS ARE DESIGNED TO MAKE IT EASIER FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO SELL A GROWING NUMBER OF APARTMENT HOUSES ACQUIRED WHEN THE OWNERS DEFAULTED ON THEIR GOVERNMENTINSURED MORTGAGES A PROBLEM THAT HUD SECRETARY HENRY CISNEROS HAS DESCRIBED AS ONE OF HIS MOST PRESSING THE LEGISLATION WOULD EASE TOUGH RULES THAT REQUIRE THE DEPARTMENT TO PROVIDE RENT SUBSIDIES FOR 15 YEARS BEFORE IT SELLS THE PROPERTY THE PUBLICHOUSING CHANGES ARE PART OF A BROADER EFFORT TO ACCOMPLISH ONE OF MR CISNEROS'S MAJOR GOALS ENCOURAGING PEOPLE WITH A SOMEWHAT WIDER RANGE OF INCOMES TO LIVE IN PUBLIC HOUSING IN AN EFFORT TO REDUCE THE ISOLATION OF THE VERY POOR AND TO CREATE VIABLE COMMUNITIES THE LEGISLATION IS EXPECTED TO PROPOSE CHANGING THE RENT POLICY FOR PUBLICHOUSING TENANTS THOSE TENANTS NOW GENERALLY PAY 30 OF THEIR INCOME FOR RENT AND UTILITIES THUS THEIR RENTS RISE WITH THEIR INCOMES MR CISNEROS AND OTHER CRITICS CONTEND THAT THIS POLICY DISCOURAGES TENANTS FROM WORKING MORE TO INCREASE EARNINGS THEY ALSO CITE A DIFFERENT PROBLEM RISING RENTS PROMPT MANY TENANTS WHO ARE SOMEWHAT BETTER OFF TO MOVE OUT OF PUBLIC HOUSING LEAVING THE POOREST BEHIND THE LEGISLATION WOULD SET A PRICE CEILING BEYOND WHICH RENTS WOULDN'T INCREASE EVEN IF THAT CEILING WAS LESS THAN 30 OF TENANTS' INCOME A SEPARATE PROPOSAL WOULD CREATE A WAITING PERIOD OF 18 MONTHS AFTER AN UNEMPLOYED TENANT GOT A JOB BEFORE COUNTING THAT INCOME AS PART OF THE 30 RULE IN RECENT YEARS TENANTS OF PUBLIC HOUSING HAVE GOTTEN PROGRESSIVELY POORER AND WHILE MANY POLICY ANALYSTS INSIST SUCH HOUSING SHOULD BE RESERVED FOR THE VERY POOR MR CISNEROS ARGUES THAT IT'S IMPORTANT TO HOUSE THOSE INDIVIDUALS WITH OTHERS WHO ARE MOVING UP THE ECONOMIC LADDER WE'RE NOT JUST TALKING ABOUT CREATING HOUSING BUT CREATING COMMUNITIES JOSEPH SHULDINER HUD'S ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING SAID IN A RECENT INTERVIEW IN PUBLIC HOUSING TODAY WE'VE TAKEN LARGE DENSE HOUSING AND MADE GHETTOS OF THE VERY POOR GORDON CAVANAUGH COUNSEL TO THE COUNCIL OF LARGE PUBLIC HOUSING AUTHORITIES SAID HIS GROUP SUPPORTS THE PROPOSALS BUT THAT THEY DON'T GO FAR ENOUGH HE WANTS THE ADMINISTRATION TO ALLOW PUBLICHOUSING TENANTS TO SUBTRACT 10 FROM THEIR EARNED INCOME BEFORE CALCULATING THE ONETHIRD THEY OWE IN RENT HE ALSO SAID THAT FAMILIES IN PUBLIC HOUSING SHOULD BE PERMITTED TO SUBTRACT MEDICAL EXPENSES BEFORE ESTIMATING THE AMOUNT OF RENT THEY OWE THE ADMINISTRATION ALSO PROBABLY WILL PROPOSE WAYS TO REVITALIZE THE FHA'S SINGLEFAMILY PROGRAM WHICH INSURES MORTGAGE LOANS FOR LOW AND MODERATEINCOME HOME BUYERS IN RECENT YEARS SUCH LOANS HAVE STEADILY SHRUNK AS A PORTION OF THE OVERALL MORTGAGE MARKET AND NOW REPRESENT A TINY SEGMENT ONE PROPOSAL UNDER CONSIDERATION WHICH MAY BE INCLUDED IN A SECOND PIECE OF LEGISLATION WOULD RAISE THE FHA MORTGAGE LIMITS DURING LAST YEAR'S CAMPAIGN MR CLINTON PLEDGED TO INCREASE THE CEILING ON FHA INSURANCE TO 95 OF THE PRICE OF THE HOME IN AN AVERAGE METROPOLITAN AREA THE DEPARTMENT ALSO IS CONSIDERING CREATING A PROGRAM THAT WOULD INSURE NODOWNPAYMENT LOANS IN ECONOMICALLY DEPRESSED AREAS AND IS EXPLORING HOW TO INSURE INNOVATIVE LOAN PRODUCTS 9307150065 930715 BUSINESS BRIEF WANG LABORATORIES INC REGULATORS LOOK INTO REPORT OF UNOFFICIAL PRESS RELEASE THE SECURITIES AND EXCHANGE COMMISSION IS PROBING UNUSUAL TRADING THIS WEEK IN WANG LABORATORIES INC INDIVIDUALS FAMILIAR WITH THE SITUATION SAID REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE SUBCOMMITTEE THAT OVERSEES THE SEC SENT A LETTER TO THE COMMISSION SUGGESTING IT LOOK INTO AN APPARENTLY BOGUS PRESS RELEASE THAT SUGGESTED THE STOCK WAS OVERPRICED WANG OFFICIALS SAID THEY WERE CONTACTED BY THE SEC ON THE TIMING OF ANNOUNCEMENTS THE SEC DECLINED TO COMMENT WANG HAS FILED A REORGANIZATION PLAN IN WHICH IT HAS SAID THAT SHAREHOLDERS WILL RECEIVE WARRANTS TO BUY STOCK THAT ARE VALUED AT ONLY A FEW PENNIES HOWEVER THE COMPANY'S WIDELY HELD CLASS B STOCK ROSE AS HIGH AS 9375 CENTS TUESDAY ON THE AMERICAN STOCK EXCHANGE ON EXTRAORDINARY VOLUME OF 51 MILLION SHARES TYPICALLY VOLUME AVERAGES 442920 SHARES IN COMPOSITE TRADING YESTERDAY WANG CLASS B CLOSED UNCHANGED AT 625 CENTS ON VOLUME OF TWO MILLION SHARES 9307150064 930715 CREDIT LYONNAIS MULLS PROPOSALS ON MGM'S FATE FRENCH STATEOWNED BANK IS SAID TO WANT TO SELL ITS AILING MOVIE MAKER BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD OFFICIALS OF CREDIT LYONNAIS SA ARE CONSIDERING SEVERAL PROPOSALS INVOLVING A RESTRUCTURING OF METROGOLDWYNMAYER INC THE AILING MOVIE STUDIO THAT THE FRENCH STATEOWNED BANK IS TRYING TO SELL PEOPLE WITH KNOWLEDGE OF THE PROPOSALS SAY WHILE THE BANK'S BOARD COULD ACCEPT ONE OF THE PROPOSALS AT A DIRECTORS' MEETING AS EARLY AS TODAY A FINAL DECISION COULD BE PUT OFF FOR SEVERAL MORE DAYS OR EVEN WEEKS THESE PEOPLE SAY AS REPORTED AT LEAST ONE PROPOSAL INVOLVES FRANK MANCUSO THE FORMER STUDIO CHIEF AT PARAMOUNT COMMUNICATIONS INC JOINING MGM IN SOME FORM OF POWERSHARING ARRANGEMENT WITH ALAN LADD JR CURRENTLY CHAIRMAN MR MANCUSO WHO HAS SPECIAL EXPERTISE IN MOTIONPICTURE DISTRIBUTION A PRIORITY FOR MGM WOULD RUN A SEPARATE UNITED ARTISTS PRODUCTION ARM ACCORDING TO ONE PLAN THIS ARRANGEMENT WAS DESIGNED BY CREATIVE ARTISTS AGENCY WHICH WAS RETAINED AS AN ADVISER BY THE BANK IN MARCH SOME PEOPLE SAY THE BANK COULD PROVIDE A NEW LINE OF CREDIT TO FINANCE UNITED ARTISTS' PRODUCTION A FIGURE THAT COULD SURPASS 200 MILLION A YEAR INCLUDING OVERHEAD AND MARKETING COSTS BUT SOME INDIVIDUALS CLOSE TO THE SITUATION SAY THAT THE BANK HAS BALKED AT FINANCING THE ENTIRE PRODUCTION SLATE BY ITSELF AND WOULD WELCOME PARTNERS THERE IS ALSO ANOTHER PROPOSAL THAT INVOLVES BRINGING IN A PRODUCTION EXECUTIVE OTHER THAN MR MANCUSO TWO ENTITIES THAT HAVE BEEN MENTIONED AS POSSIBLE FINANCING PARTNERS IN AN MGM TRANSACTION INCLUDE THE PRITZKER FAMILY OF CHICAGO AND CHARGEURS SA A FRENCH TEXTILE AND COMMUNICATIONS CONCERN THAT HAS INTERESTS IN THE ENTERTAINMENT FIELD ANOTHER POSSIBLE PROPOSAL THAT SURFACED YESTERDAY ALTHOUGH IT WAS DISMISSED AS HIGHLY UNLIKELY BY SEVERAL EXECUTIVES WAS A PLAN INVOLVING HOLLYWOOD TALENT MANAGER JEFF WALD WITH AT LEAST PARTIAL FUNDING FROM CARGILL INC THE LARGE COMMODITIES PROCESSOR AND FINANCIALSERVICES CONCERN CARGILL MIGHT BUY A BLOCK OF DEBT FROM CREDIT LYONNAIS AND THEN RESELL IT ALL THE COMPANIES AND INDIVIDUALS SAID TO BE LOOKING AT A POSSIBLE MGM TRANSACTION EITHER DECLINED TO COMMENT OR COULDN'T BE REACHED CREDIT LYONNAIS TOOK CONTROL OF MGM IN 1990 BY FORECLOSING ON LOANS IT HAD MADE TO ITALIAN FINANCIER GIANCARLO PARRETTI TO PURCHASE THE STUDIO FROM LONGTIME CONTROLLING SHAREHOLDER KIRK KERKORIAN THE BANK HAS POURED MORE THAN 2 BILLION INTO MGM AND ITS WILLINGNESS TO WRITE OFF ITS INVESTMENT HAS BEEN LIMITED BY A VOLATILE POLITICAL SITUATION IN FRANCE THE ROLE OF CREATIVE ARTISTS AS ADVISER TO CREDIT LYONNAIS STIRRED CONTROVERSY AFTER A LARGE RIVAL TALENT AGENCY INTERNATIONAL CREATIVE MANAGEMENT CONTENDED THAT THE RELATIONSHIP COULD BE CONSTRUED AS ANTICOMPETITIVE AND MIGHT VIOLATE RULES THAT GOVERN IN WHAT ACTIVITIES AN AGENCY CAN ENGAGE CREATIVE ARTISTS DENIED THAT THERE WOULD BE ANY RULE VIOLATION OR CONFLICTS OF INTEREST 9307150063 930715 MARKETSCAN BREWERS' PRICE CUTTING AND PROMOTIONS FAIL TO PUT MUCH OF A HEAD ON BEER SALES BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL AS THE SUMMER GROWS HOTTER BEER DRINKERS HAVE SOME COOL CONSOLATION MORE BREW FOR THE BUCK IN JUNE CONSUMERS IN COLORADO COULD BUY A CASE OF COORS DRY BEER FOR 1599 AND GET 10 BACK WITH A MAILIN SLIP THAT WORKED OUT TO ABOUT 25 CENTS A CAN ABOUT AS CHEAP AS PREMIUM BEER CAN GET MEANWHILE 30CAN PACKS OF OLD STYLE HIT THE STREETS OF CHICAGO FOR 999 ONLY 33 CENTS A CAN AND WISCONSIN CONSUMERS COULD PICK UP A 12PACK OF BUSCH FOR 399 DOWN FROM A MORE USUAL 549 PRICES ARE LOWER THAN THEY'VE BEEN IN FIVE OR 10 YEARS SAYS JOHN ANDERSON JR PRESIDENT OF ACE BEVERAGE CO A BEER DISTRIBUTOR IN LOS ANGELES W LEO KIELY PRESIDENT OF COORS BREWING CO A UNIT OF ADOLPH COORS CO CONCURS IT'S GOING TO BE ONE OF THE MOST COMPETITIVE SUMMERS IN A DECADE THE DISCOUNTING INCLUDES BOTH STRAIGHT PRICE CUTS AND SUCH PROMOTIONAL ACTIVITIES AS SWEEPSTAKES COUPONS AND REFUND OFFERS INDEED COUPONS AND MAILIN REFUND SLIPS LITTER BEER CASES AND DISPLAYS AT GROCERY STORES AND LIQUOR STORES IN STATES WHERE THEY ARE LEGAL ELSEWHERE BEER PRICES HAVE DROPPED BY AS MUCH AS 1 A CASE WITH THE DISTRIBUTOR AND BREWER SPLITTING THE COST OF THE DISCOUNT LOWERING PRICES BY WHATEVER MEANS IN THE ALLIMPORTANT SUMMER SEASON REPRESENTS A NEW TURN IN THE NATION'S 20YEAROLD BEER WARS PRICE PROMOTIONS HAVE ALWAYS BEEN PART OF BEER MARKETING BUT UNTIL RECENTLY WERE A RELATIVELY SEDATE FRONT IN A WAR FOUGHT PRIMARILY WITH HYPERKINETIC COMMERCIALS GIVEAWAYS SPECIAL PROMOTIONS AND EVENT SPONSORSHIPS BUT THIS YEAR ABOUT 40 OF THE BEER SOLD NATIONWIDE WILL LIKELY SELL FOR LESS THAN THE POSTED PRICE ANALYSTS SAY UP A COUPLE OF PERCENTAGE POINTS FROM LAST YEAR AND UP AT LEAST 10 POINTS FROM FIVE YEARS AGO IN SOME STATES AS MUCH AS 60 WILL BE SOLD AT LESS THAN REGULAR RETAIL PRICES THE RESULT NATURALLY IS SHRINKING PROFIT MARGINS FOR BOTH BEER MAKERS AND WHOLESALERS FOR BEER MAKERS THE MOST DISTRESSING PART OF ALL THIS CONFLICT IS THAT IT ISN'T GETTING THEM ANYWHERE IN MOST OF THE COUNTRY THE PRICE WAR HAS DONE LITTLE TO SHIFT MARKET SHARE AS EACH BREWER'S DISCOUNTS ARE QUICKLY MATCHED BY OTHER BREWERS AND THE DEEP DISCOUNTS DON'T SEEM TO BE INCREASING OVERALL CONSUMPTION EITHER FOR THE FIRST FIVE MONTHS OF 1993 DOMESTIC BEER SHIPMENTS FELL ABOUT 2 DATA GATHERED FROM SUPERMARKETS BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SHOW THAT AVERAGE RETAIL PRICES OF THE TOPSELLING BEER BRANDS WERE EITHER FLAT OR DECLINING DURING THE 12 WEEKS ENDED JUNE 13 COMPARED WITH THE YEAREARLIER PERIOD NONE OF THE TOP 10 BRANDS MANAGED EVEN A 1 INCREASE AND FOUR BRANDS CUT PRICES AVERAGE RETAIL PRICES AS MEASURED BY INFORMATION RESOURCES DO NOT INCLUDE SAVINGS CONSUMERS GET FROM MANUFACTURERS' COUPONS OR REFUND PROMOTIONS IN GENERAL MARKETERS CUT PRICES ON SMALLER BRANDS MORE THAN ON TOP SELLERS THE AVERAGE PRICE OF 288 OUNCES THE EQUIVALENT OF A CASE OF BUDWEISER AND MILLER LITE INCHED UP 02 AND 01 RESPECTIVELY BUT THE AVERAGE PRICE OF AN EQUAL AMOUNT OF ANHEUSERBUSCH'S NATURAL LIGHT DECLINED 37 TO 980 AND THE PRICE OF PHILIP MORRIS'S MILWAUKEE'S BEST BEER DROPPED 39 TO 873 SEVERAL SMALLER BRANDS ALSO SIGNIFICANTLY INCREASED THEIR TRADE PROMOTIONS WHICH INCLUDE FEATURE ADS SPECIAL INSTORE DISPLAYS AND TEMPORARY PRICE REDUCTIONS FOR NATURAL LIGHT THE PERCENTAGE OF SALES INVOLVING ONE OR MORE OF THOSE PROMOTIONS JUMPED 84 PERCENTAGE POINTS FROM THE PREVIOUS YEAR WHILE THE PERCENTAGE OF BUSCH'S SALES INVOLVING PROMOTIONS CLIMBED BY NEARLY SIX POINTS INFORMATION RESOURCES REPORTS AT THE BEGINNING OF THE YEAR ANHEUSERBUSCH COS TOLD ANALYSTS IT DIDN'T EXPECT DISCOUNTING TO INTENSIFY IN 1993 BUT THE BREWER RECENTLY TOLD ANALYSTS IT EXPECTS THAT 41 TO 42 OF ITS VOLUME THIS YEAR WILL BE SOLD AT LESS THAN THE REGULAR RETAIL PRICE COMPARED WITH 38 LAST YEAR AS RECENTLY AS 1990 THE NATION'S LARGEST BREWER SOLD JUST 31 OF ITS BEER AT LESS THAN THE POSTED PRICE THE FACT THAT SMALLER SECONDTIER BREWERS HAVE BEEN THE PRICESLASHING AGGRESSORS IN MANY MARKETS FOR EXAMPLE CALIFORNIA AND FLORIDA IS SURPRISING TO SOME THINGS HAVE BEEN TURNED ON THEIR HEADS SAYS EMANUEL GOLDMAN ANALYST AT PAINEWEBBER INC SAN FRANCISCO NORMALLY ONE WOULD EXPECT THE LARGER BREWERS TO BE MORE AGGRESSIVE IN PRICE BUT IT LOOKS LIKE THE SECONDTIER BREWERS ARE PRIMARILY RESPONSIBLE FOR MOVING THE PRICE DISCOUNTING UP A NOTCH BREWERS BLAME THE PRICE WAR ON THE SLUGGISH ECONOMY IN CERTAIN PARTS OF THE COUNTRY THE LACK OF CONSUMER CONFIDENCE AND ERODING LOYALTY TO BRAND NAMES IN THE '90S PEOPLE ARE LOOKING AT THEIR PURCHASES A LOT DIFFERENTLY SAYS MR ANDERSON OF ACE BEVERAGE THEY'RE NOT AS INTERESTED IN NAME BRANDS AS THEY ONCE WERE AND AS THEY HAVE FOR SEVERAL YEARS BREWERS ARE BATTLING A FLAT MARKET WHAT'S REALLY DRIVING THIS IS A BATTLE FOR MARKET SHARE OF A PIE THAT'S NOT GROWING SAYS BENJ STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S INSIGHTS AS THE PRICE BATTLE RAGES SEVERAL BREWERS ARE BORROWING A TRICK FROM TOOTHPASTE AND SHAMPOO MAKERS SELLING BIGGER PACKAGES FOR ONLY SLIGHLY HIGHER PRICES THE WAY THE BREWERS DO IT IS BY SHIPPING NEW 18CAN AND 30CAN PACKAGES THAT CUT THE PERCAN PRICE FROM A REGULAR 12PACK OR CASE PRICE IN ANOTHER TACTIC TO FURTHER LOWER PRICES AND ONE THAT IS CONTROVERSIAL SOME BREWERS ARE CUTTING OUT THE MIDDLEMAN IN CALIFORNIA FOR EXAMPLE PABST BREWING CO WHICH IS OWNED BY S&P CO AND G HEILEMAN BREWING CO HAVE BEGUN SHIPPING BEER DIRECTLY FROM THEIR BREWERIES TO SOME LARGE RETAILERS THUS KEEPING SOME OF THE PROFIT MARGIN THAT TYPICALLY GOES TO WHOLESALERS THAT ALSO ENABLES THEM TO SLASH THE PRICE TO THE CONSUMER AND PUT MORE PRESSURE ON OTHER BREWERS TO REDUCE THEIR PRICES THE TACTIC HAS INCREASED PABST'S MARKET SHARE IN CALIFORNIA AND THAT GAIN IN SUCH A MAJOR MARKET HAS HELPED BOOST THE BREWER'S NATIONAL SHARE OF SUPERMARKET SALES BY 16 IN THE FIRST QUARTER BUT DISTRIBUTORS AREN'T HAPPY ABOUT BEING CUT OUT OF THE LOOP TWENTYTWO OF THEM HAVE SUED HEILEMAN OVER THE PRACTICE IN FEDERAL COURT IN SAN FRANCISCO ALLEGING THAT IT VIOLATES A US LAW REQUIRING A THREETIER BEER DISTRIBUTION SYSTEM CONGRESS SET UP THE LAW TO AVOID THE PREPROHIBITION CORRUPTION AND ANTICOMPETITIVE PRACTICES THAT OCCURRED WHEN BREWERS CONTROLLED THE DISTRIBUTION OF BEER PABST DIDN'T RETURN PHONE CALLS AND HEILEMAN SAID IT IS VIGOROUSLY DEFENDING ITS NEW PRACTICE IN COURT THE BREWERS THEMSELVES ARE VERY SENSITIVE ABOUT THE PRICE WARS AND DECLINE TO DISCUSS WHO STARTED IT ALL EACH CLAIMING THAT ITS OWN DISCOUNTING IS A DEFENSIVE MOVE ANHEUSERBUSCH EXECUTIVES DECLINED TO BE INTERVIEWED FOR THIS ARTICLE BUT IN A STATEMENT READ BY A SPOKESMAN FOR THE COMPANY THE ST LOUIS BREWER SAID IT DOES LESS DISCOUNTING THAN OTHERS IN THE INDUSTRY A SPOKESMAN FOR MILLER A UNIT OF PHILIP MORRIS COS WILL ONLY SAY WE'RE GOING TO DO WHATEVER IT TAKES TO REMAIN COMPETITIVE THANKS IN PART TO LOWER ALUMINUM PRICES BREWERS ARE STILL MAKING MONEY AT THESE LOWER PRICES SAYS MR GOLDMAN THE ANALYST AND COULD SURVIVE SEVERAL YEARS OF PRICE CUTTING BEFORE ANY OF THE BIG BREWERS WOULD BE FINANCIALLY CRIPPLED BUT THERE IS LITTLE DOUBT THAT THE DISCOUNTING IS ALREADY HURTING PROFITS ANALYSTS ATTRIBUTE ANHEUSERBUSCH'S LOWER FIRSTQUARTER EARNINGSITS FIRST DOWNTURN IN 17 YEARSAT LEAST PARTLY TO PRICE CUTTING AND DESPITE THE PRICE CUTTING BREWERS HAVEN'T BEEN ABLE TO MAKE A DENT IN THE SMALL EXTREMELY LOYAL GROUP THAT DRINKS THE MOREEXPENSIVE MICROBREWERY AND IMPORTED BEERS BOTH TYPES OF BEER HAVE ENJOYED RISING SALES FOR THE PAST TWO YEARS IN THE FIRST FIVE MONTHS OF 1993 FOR EXAMPLE IMPORT SALES ROSE 9 IN THE MIDST OF AN OVERALL PRICE CONSCIOUSNESS MR GOLDMAN SAYS SOME PORTION OF THE BEERDRINKING PUBLIC REMAINS SELFINDULGENT AVERAGE RETAIL PRICES FOR THE TOP BEER BRANDS ARE FLAT OR DECLINING AND SAVVY CONSUMERS ALSO ARE BENEFITING FROM CENTSOFF COUPONS REBATE OFFERS AND SWEEPSTAKES PROMOTIONS AVERAGE RETAIL PRICES ARE BASED ON SUPERMARKET SALES DURING THE 12 WEEKS ENDED JUNE 13 PRICES DO NOT INCLUDE SAVINGS FROM COUPONS OR MAILIN REFUND OFFERS 9307150062 930715 BUSINESS BRIEF FOXMEYER TO POST SHARP DROP IN PROFIT FOR ITS FIRST QUARTER DALLAS FOXMEYER CORP SAID IT EXPECTS PERSHARE EARNINGS FOR THE FIRST QUARTER ENDED JUNE 30 TO FALL TO JUST UNDER ONEHALF THE AMOUNT REPORTED LAST YEAR DUE TO COSTS ASSOCIATED WITH REDIRECTING SOME OPERATIONS THE WHOLESALE DRUG DISTRIBUTOR ADDED THAT IT EXPECTS 30 HIGHER SALES DURING THE PERIOD AND HIGHER SALES AND EARNINGS DURING FISCAL 1994 IN THE YEAREARLIER FIRST QUARTER FOXMEYER EARNED 64 MILLION OR 21 CENTS A SHARE ON SALES OF 9386 MILLION THE COMPANY BLAMED THE FIRST QUARTER PROFIT DECLINE ON EXPENSES FROM PLACING MORE EMPHASIS ON OVERTHECOUNTER MEDICATIONS AND HEALTH AND BEAUTY AIDS TO COUNTERACT THE DECLINE IN MARGINS ON PRESCRIPTION DRUGS AND UPDATING ITS DATA PROCESSING SYSTEMS FOXMEYER ALSO OPENED A NEW DISTRIBUTION CENTER IN RICHMOND VA AND IS ADDING WHOLESALE PROGRAMS IN NONTRADITIONAL AREAS SUCH AS MANAGED CARE FOXMEYER SAID IT EXPECTS HIGHER EARNINGS IN FISCAL 1994 EXCLUDING A SPECIAL CHARGE OF 428 MILLION LAST YEAR RELATED TO THE BANKRUPTCY OF PHARMOR INC A MAJOR CUSTOMER WHICH REDUCED NET EARNINGS BY 254 MILLION OR 86 CENTS A SHARE THE COMPANY REPORTED NET INCOME FOR FISCAL 1992 OF 220000 OR ONE CENT A SHARE SALES FOR THE CURRENT FISCAL YEAR ARE EXPECTED TO INCREASE 15 TO 20 OVER THE 451 BILLION OF LAST YEAR THE COMPANY SAID ANALYSTS' CONSENSUS ESTIMATES PROJECT FOXMEYER TO EARN 90 CENTS TO 105 A SHARE IN FISCAL 1994 FOXMEYER PRESIDENT AND CHIEF OPERATING OFFICER THOMAS L ANDERSON SAID IT'S REALISTIC TO EXPECT EARNINGS BETTER THAN THE LOW END OF THAT RANGE HE SAID BY YEAR END THE RESULTS SHOULD IMPROVE FROM REDUCTIONS IN OPERATING EXPENSES AS A PERCENTAGE OF SALES CONTRIBUTIONS FROM NEW MARKETING PROGRAMS AND THE NONTRADITIONAL WHOLESALE PROGRAMS AND HIGHER FOURTHQUARTER MARGINS IN NEW YORK STOCK EXCHANGE LATE TRADING YESTERDAY FOXMEYER CLOSED AT 9625 A SHARE DOWN 125 CENTS 9307150061 930715 WESTINGHOUSE POSTS 31 DROP IN EARNINGS FOR THE 2ND QUARTER PITTSBURGH WESTINGHOUSE ELECTRIC CORP CITING POOR RESULTS IN ITS ENVIRONMENTAL UNIT SAID SECONDQUARTER NET INCOME DROPPED 31 TO 84 MILLION OR 20 CENTS A SHARE FROM 122 MILLION OR 35 CENTS A SHARE SALES FELL 9 TO 198 BILLION FROM 218 BILLION WESTINGHOUSE ALSO HAD LOWER OPERATING PROFITS IN ITS BROADCASTING ELECTRONIC SYSTEMS AND POWER SYSTEMS UNITS PROFIT FROM CONTINUING OPERATIONS FELL 18 TO 84 MILLION FROM 103 MILLION WESTINGHOUSE CLOSED YESTERDAY AT 16125 DOWN 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WESTINGHOUSE ALSO SAID IT CUT ITS TOTAL DEBT BY 23 BILLION TO 76 BILLION DURING THE YEAR'S FIRST SIX MONTHS BY ACCELERATING ASSET SALES IN ITS FINANCIAL SERVICES BUSINESS AS PART OF THIS THE COMPANY PAID OFF 16 BILLION OF ITS REVOLVING CREDIT FACILITY CUTTING TOTAL BORROWINGS UNDER IT TO 39 BILLION MICHAEL H JORDAN THE COMPANY'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER CALLED DEBT REDUCTION OUR PRIMARY GOAL FOR 1993 THE COMPANY'S FINANCIAL SERVICES UNIT WHOSE SOUR LOANS FORCED WESTINGHOUSE TO TAKE 5 BILLION IN CHARGES OVER THE PAST TWO YEARS SOLD 23 BILLION IN ASSETS DURING THE QUARTER THIS ESSENTIALLY ELIMINATES THE COMPANY'S EXPOSURE FROM COMMERCIAL REALESTATE ASSETS WESTINGHOUSE SAID THAT WAS THE HIGHLIGHT OF THE QUARTER SAID MAUREEN P LENTZ AN ANALYST WITH ROULSTON & CO IN CLEVELAND MS LENTZ ADDED THAT INVESTORS SHOULDN'T EXPECT MUCH FROM THE COMPANY FOR THE REST OF THE YEAR AS MR JORDAN FORMULATES A PLAN TO SLASH EXPENSES AND TURN AROUND THE COMPANY YOU HAVE TO LOOK TO NEXT YEAR SHE SAID 9307150060 930715 INTERNATIONAL BRIEF JOHN FAIRFAX HOLDINGS LTD CANADIAN PUBLISHER INCREASES STAKE IN AUSTRALIAN CONCERN CANADIAN PUBLISHER CONRAD BLACK HAS INCREASED HIS STAKE IN JOHN FAIRFAX HOLDINGS LTD TO 25 THE MAXIMUM ALLOWABLE LEVEL FAIRFAX IS AN AUSTRALIAN NEWSPAPER PUBLISHING GROUP AUSTRALIAN LAW PROHIBITS A FOREIGN INVESTOR FROM OWNING MORE THAN 25 OF AUSTRALIAN MEDIA CONCERNS IN APRIL THE AUSTRALIAN GOVERNMENT APPROVED AN APPLICATION FROM MR BLACK TO RAISE HIS FAIRFAX STAKE TO 25 FROM 15 FAIRFAX SAID IT HADN'T RECEIVED FINAL NOTIFICATION OF THE STAKE BUT AN OFFICIAL SAID THAT MR BLACK'S BRITISH COMPANY TELEGRAPH PLC INCREASED ITS STAKE TO 25 ON MONDAY WHEN IT BOUGHT FIVE MILLION FAIRFAX SHARES AT 226 AUSTRALIAN DOLLARS US153 EACH A SPOKESMAN FOR STOCK BROKERAGE FIRM ANZ MCCAUGHAN SECURITIES LTD CONFIRMED THAT HIS FIRM HAD HANDLED THE TRANSACTION BUT WOULDN'T COMMENT ON WHO HAD BOUGHT THE SHARES 9307150059 930715 MARKETING & MEDIA CAPITAL CITIES HEARST LET CABLE CONCERN CARRY TV PROGRAMMING AT NO CHARGE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC SIGNED A TRUCE WITH THE NATION'S THIRDLARGEST CABLE OPERATOR IN A LOOMING FIGHT OVER PROGRAMMING PAYMENTS THAT TV STATIONS CAN DEMAND FROM CABLE SYSTEMS CAPITAL CITIES AND HEARST CORP AGREED TO LET CONTINENTAL CABLEVISION INC'S CABLE SYSTEMS CARRY PROGRAMMING FROM TV STATIONS OWNED BY CAPITAL CITIES AND HEARST WITHOUT HAVING TO PAY FOR IT SOME INDUSTRY EXECUTIVES SAID THE FEE WILL AMOUNT TO 12 CENTS A HOUSEHOLD AND COULD GO UP THEREAFTER BUT A CONTINENTAL SPOKESMAN SAID THAT FIGURE IS WRONG THE SIXYEAR PACT MAKES ABC THE FIRST OF THE THREE MAJOR BROADCAST NETWORKS TO REACH AN AGREEMENT WITH A CABLE SYSTEM UNDER A NEW CABLE LAW THAT LAW LETS TV STATIONS FOR THE FIRST TIME CHARGE CABLE SYSTEMS FOR USE OF THEIR PROGRAMMING SOME CABLE OPERATORS HAVE THREATENED TO DROP LOCAL STATIONS THAT DEMAND TOO MUCH MONEY THAT RESISTANCE HAS SET UP A TENSE FACEOFF BETWEEN CABLE AND BROADCASTERS MICHAEL P MALLARDI PRESIDENT OF THE CAPITAL CITIES/ABC BROADCAST GROUP SAID HE OPTED TO INCLUDE ESPN2 IN THE AGREEMENT WITH CONTINENTAL BECAUSE DEMANDING CASH FOR THE STATION PROGRAMMING REQUIRED A FORM OF RISK AND A GAME OF CHICKEN THAT CARRIED WITH IT SOME SIGNIFICANT DOWNSIDE FOR EVERYBODY INCLUDING VIEWERS SOME 80 OF TV STATIONS HAVE DECIDED TO ASK FOR PAYMENTS IN SOME FORM FROM AT LEAST ONE OF THE CABLE SYSTEMS THAT CARRY THEM ACCORDING TO A SURVEY TO BE RELEASED TODAY BY THE NATIONAL ASSOCIATION OF BROADCASTERS BY NETWORK 90 OF ABC AFFILIATES ARE SEEKING SOME PAYMENT AS ARE 93 OF NBC AFFILIATES 94 OF CBS STATIONS 98 OF FOX AFFILIATES AND ONLY 20 OF INDEPENDENTS THE CONTINENTAL DEAL COVERS THE CAPITAL CITIESOWNED STATIONS IN NEW YORK CHICAGO LOS ANGELES SAN FRANCISCO AND FRESNO CALIF AS WELL AS HEARST'S STATIONS IN BOSTON AND DAYTON OHIO A 12 CENT MONTHLY FEE FOR ESPN2 WHICH NEITHER COMPANY WOULD CONFIRM WOULD BE SUBSTANTIALLY BELOW THE 25 CENTS A MONTH THAT NEWS CORP'S FOX NETWORK GOT FROM THE NATION'S LARGEST CABLE OPERATOR TELECOMMUNICATIONS INC IN EXCHANGE FOR ITS STATIONS' SIGNALS AND CARRIAGE OF A NEW FOX CABLE NETWORK 9307150058 930715 BUSINESS BRIEF EXABYTE CORP SECONDPERIOD NET FELL 86 AGGRESSIVE STEPS' PLANNED EXABYTE CORP REPORTED AN 86 PLUNGE IN SECONDQUARTER NET INCOME AND SAID IT IS TAKING AGGRESSIVE STEPS TO REDUCE COSTS AND OPTIMIZE REVENUE AND MARGINS THE BOULDER COLO MAKER OF DATASTORING TAPE CARTRIDGE SYSTEMS SAID SECONDQUARTER NET DROPPED TO 16 MILLION OR EIGHT CENTS A SHARE FROM 117 MILLION OR 54 CENTS A SHARE A YEAR EARLIER SALES FOR THE QUARTER ENDED JULY 3 FELL SLIGHTLY TO 758 MILLION FROM 766 MILLION A YEAR EARLIER THE COMPANY SAID ITS RESULTS WERE AFFECTED BY THE SLUGGISH GLOBAL ECONOMY MARGIN PRESSURES IN THE COMPUTER INDUSTRY AND THE COMPETITIVE NATURE OF THE STORAGE PERIPHERALS BUSINESS THE COMPANY ALSO SAID RESULTS WERE HURT BY THE DOLLAR'S WEAKNESS AGAINST THE YEN WHICH AFFECTED PRODUCTION COSTS TO COMBAT THAT TREND AND THE DISAPPOINTING RESULTS THE COMPANY WILL RELOCATE PRODUCTION OPERATIONS GERARD HALLAREN AN ANALYST AT HANIFEN IMHOFF INC IN DENVER SAID IT MAY TAKE SEVERAL QUARTERS BEFORE EXABYTE'S RESULTS IMPROVE THEY SEEM TO BE DOING ALL THE RIGHT THINGS HE SAID IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY EXABYTE CLOSED AT 875 DOWN 1 OR 103 9307150057 930715 TECHNOLOGY & HEALTH AST SEES LOSSES IN QUARTER YEAR AFTER CHARGE BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AST RESEARCH INC SAID IT IS TAKING A CHARGE OF AS MUCH AS 125 MILLION FOR ITS COMPLETED ACQUISITION OF TANDY CORP'S PERSONAL COMPUTER BUSINESS AND THAT IT EXPECTS TO REPORT LOSSES FOR THE FISCAL FOURTH QUARTER AND YEAR AST OFFICIALS DIDN'T INDICATE THE AMOUNT OF THE LOSSES EXCLUDING THE CHARGE SOME ANALYSTS HAD ESTIMATED THE IRVINE CALIF COMPUTER MAKER WOULD EARN 114 MILLION OR 35 CENTS A SHARE IN THE FOURTH QUARTER ENDED JULY 3 DOWN FROM NET INCOME OF 186 MILLION OR 59 CENTS A SHARE IN THE YEARAGO PERIOD FOR THE YEAR ANALYSTS HAD ESTIMATED AST WOULD MAKE ABOUT 45 MILLION OR 140 A SHARE DOWN FROM LAST YEAR'S PROFITS OF 685 MILLION OR 216 A SHARE THE COMPANY'S EARNINGS HAVE DEPRESSED AMID PC PRICING WARS THE PRETAX CHARGE TO ABSORB ACQUISITION COSTS IS UPFRONT ANALYSTS SAY SO FUTURE EARNINGS WON'T BE WEIGHTED DOWN THE CHARGE REFLECTS ESTIMATED EXPENSES TO COMBINE AND RESTRUCTURE AST'S MANUFACTURING MARKETING ENGINEERING DISTRIBUTION AND SALESANDSERVICE OPERATIONS IT ALSO ACCOUNTS FOR INVENTORY ADJUSTMENTS TO REFLECT THE REALIGNMENT OF PRODUCT LINES MOST OF THE CHARGE IS GIVING US THE FLEXIBILITY TO RESTRUCTURE AST FOR THE FUTURE SAID SAFI QURESHEY PRESIDENT AND CHIEF EXECUTIVE OFFICER ANALYSTS ANTICIPATED A CHARGE OF SOME MAGNITUDE AFTER AST ANNOUNCED THAT IT COMPLETED ITS ACQUISITION OF THE TANDY PC BUSINESS WHICH REPORTED 500 MILLION IN ANNUAL SALES MAKING AST THE FOURTHLARGEST PC MANUFACTURER IN THE US AST WITH ABOUT 14 BILLION IN ANNUAL SALES BEFORE THE ACQUISITION WAS RANKED SEVENTH IN US PC SALES BY INTERNATIONAL DATA CORP A MARKET RESEARCHER THE ACQUISITION OF TANDY'S BUSINESS ANNOUNCED AT A PURCHASE PRICE OF ABOUT 175 MILLION IS EXPECTED TO PROVIDE NEW PRODUCTS AND BETTER ECONOMIES OF SCALE AND IS EXPECTED TO HELP AST EXPAND INTO MULTIMEDIA AND PENBASED COMPUTING IT ALSO IS EXPECTED TO INCREASE AST'S MANUFACTURING CAPACITY AND EXPAND ITS PRESENCE IN EUROPE IN ADDITION THE MOVE IS EXPECTED TO OPEN DISTRIBUTION CHANNELS SINCE AST CAN MARKET ITS TANDY COMPUTERS IN TANDY'S RADIO SHACK STORES FORT WORTH TEXASBASED TANDY WAS A PIONEER IN PERSONAL COMPUTERS DURING THE 1970S BUT ANALYSTS SAY THE COMPANY'S PRODUCTS OFTEN WERE OUT OF STEP WITH OTHER COMPUTER MAKERS AND NEWS THAT IT WOULD SPIN THAT BUSINESS OFF WAS GREETED WARMLY ON WALL STREET YESTERDAY IN OVERTHECOUNTER TRADING AST CLOSED AT 15125 DOWN 875 CENTS TANDY CLOSED AT 2925 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9307150056 930715 LAB PARTNERS WITH COLD WAR OVER LOS ALAMOS SEEKS NEW WAY OF DOING BUSINESS TOP SCIENTIFIC FACILITY HOPES TO REVAMP USING HELP FROM INDUSTRY EXPERTS VISITORS FROM MOTOROLA U BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL LOS ALAMOS NM IN A SPARTAN CLASSROOM ATOP A LONG SKINNY MESA FAR FROM THE PUBLIC'S PRYING EYES 30 SENIOR MANAGERS OF THE LOS ALAMOS NATIONAL LABORATORY SQUIRM AS THEY REVEAL TALES OF INEFFICIENCY AND BUREAUCRATIC EXCESS WE SPEND 400 MILLION OF PEOPLE'S TIME CHASING A 6 MILLION PROJECT SAYS ONE DEPARTMENT HEAD WE DO NOT EVEN KNOW WHO IS WORKING HERE ANOTHER CHIMES IN WE SENT A MEMO TO ALL EMPLOYEES AND DEAD PEOPLE GOT MEMOS THE CONFESSIONAL PAINFUL AND THERAPEUTIC IS PART OF AN EFFORT BY MOTOROLA INC TO HELP TRANSFORM LOS ALAMOS THE NATION'S STORIED NUCLEARWEAPONS LAB INTO A POSTCOLD WAR RESEARCH AND DEVELOPMENT FACILITY FOSTERING US INDUSTRIAL COMPETITIVENESS TO THAT END LOS ALAMOS TOMORROW WILL ANNOUNCE ITS PLAN FOR TOTAL REORGANIZATION BASED LARGELY ON QUALITY MANAGEMENT TECHNIQUES LEARNED FROM OUTSIDE CONSULTANTS PRIMARILY MOTOROLA IT IS A TENSE TIME FOR THE LOS ALAMOS FAITHFUL ONCE CONSIDERED THE CLOISTERED ELITE OF THE DEFENSERESEARCH ESTABLISHMENT HOME TO J ROBERT OPPENHEIMER AND THE MANHATTAN PROJECT LOS ALAMOS WAS THE BIRTHPLACE OF NUCLEAR WEAPONS FOR 50 YEARS THE LAB HAS BEEN A MAJOR CONTRACTOR TO THE MILITARY AND OVERSEEN BY THE FEDERAL GOVERNMENT AND THE UNIVERSITY OF CALIFORNIA FROM ITS BEGINNING AS A SECRET POSTOFFICE BOX IN 1943 LOS ALAMOS HAS GROWN INTO A 43SQUAREMILE HIGHTECH MEGALOPOLIS OF 11000 WORKERS A 1 BILLIONAYEAR BUDGET AND ABOUT 2000 BUILDINGS IN THE NEW MEXICO MOUNTAINS HOUSING EVERYTHING FROM PLUTONIUM TO LASERS YET THE PARAGON OF US TECHNOLOGICAL PROWESS IS SUDDENLY IN THE SAME BOAT AS MANY OF AMERICA'S MAJOR OLDLINE CORPORATIONS FAT SLOW AND RIDDLED WITH OPERATIONAL AND ADMINISTRATIVE EXCESS THE LAB HAS FOUND ITSELF IN BUREAUCRATIC MELTDOWN AT A TIME WHEN THE MILITARY'S NUCLEARWEAPONS COMPLEX IS IMPLODING AND THE NATION HAS LOST ITS APPETITE FOR BIGBUCKS RESEARCH PROJECTS AT TAXPAYERS' EXPENSE WE HAVE BEEN LIVING ON A VERY SIGNIFICANT ENTITLEMENT PROGRAM FOR 50 YEARS SAYS JOHN WHETTEN THE LAB'S ASSOCIATE DIRECTOR FOR QUALITY A NEWLY CREATED POSITION THE LAB HOPES TO ESTABLISH ITSELF AS A RESEARCH AND DEVELOPMENT PARTNER FOR US INDUSTRY WORKING ON SUCH FANCIFUL AND FRUSTRATING TECHNICAL PROBLEMS AS NONPOLLUTING CARS AND ADVANCED SEMICONDUCTOR MANUFACTURING AND IT MUST DO SO AT COMPETITIVE PRICES WE'VE GOT TO DO THINGS THAT SOMEONE WANTS TO PAY FOR SAYS SIEGFRIED HECKER THE LAB'S DIRECTOR IN RETROSPECT DEFENSE WAS EASY WITH THE FALL OF THE BERLIN WALL LOS ALAMOS AND OTHER NUCLEARWEAPONS LABS HOPED TO REVITALIZE INDUSTRY WITH FORMERLY CLASSIFIED KNOWHOW BUT LOS ALAMOS QUICKLY LEARNED IT WAS FAR BEHIND CORPORATE AMERICA ON CRUCIAL SCORES THROUGHOUT THE DEPARTMENT OF ENERGY EFFORTS AT TECHNOLOGY TRANSFER WERE BESET BY HIGH COSTS SLOW DEVELOPMENT AND TANGLED PATENT AND CONTRACT DISPUTES LOS ALAMOS FOR EXAMPLE ALSO BUILDS INTO ITS PROJECTS COSTS FOR THE LAB'S MASSIVE ONGOING ENVIRONMENTAL CLEANUP COSTS SO HIGH THAT NO ONE IN THE WORLD COULD AFFORD TO DO BUSINESS WITH THEM SAYS ONE EXECUTIVE WORKING WITH THE LAB AND LOS ALAMOS KNOWS ONLY ONE WAY TO OPERATE THE BUREAUCRATIC WAY THE EXECUTIVE RECALLS NEGOTIATING A RESEARCH AGREEMENT BETWEEN A CONSORTIUM OF COMPANIES AND THE LAB THE CONSORTIUM HAD ONE LAWYER LOS ALAMOS HAD A DOZEN GOVERNMENT ATTORNEYS WHO KEPT ARGUING AMONG THEMSELVES AND ALMOST KILLED THE DEAL THE LAB NEEDED HELP AND OVER DINNER IN NEARBY SANTA FE LAST YEAR DR HECKER ASKED RALPH PONCE DE LEON A MOTOROLA VICE PRESIDENT IF FORMER MOTOROLA CHAIRMAN ROBERT GALVIN WOULD BE HIS MENTOR TO HELP THE LAB ADOPT A MORE INDUSTRIAL PHILOSOPHY MR GALVIN THE SEMIRETIRED SON OF THE COMPANY FOUNDER AND THE INNOVATIVE LEADER CREDITED WITH MUCH OF MOTOROLA'S SUCCESS AS A PACESETTER FLEW OUT TO NEW MEXICO HE ARRIVED SEEMING SKEPTICAL TELLING HIS PILOT IN EARSHOT OF A LOS ALAMOS GREETING PARTY TO KEEP THE PLANE READY BECAUSE HIS VISIT MIGHT BE BRIEF BUT HE WAS QUICKLY SOLD ON THE LAB'S POTENTIAL AND CALLED IN THE TROOPS MOTOROLA UNIVERSITY WHICH PROVIDES TRAINING IN PRODUCTIVITY AND EFFICIENCY TO THE COMPANY'S EMPLOYEES CUSTOMERS AND SUPPLIERS THEY'VE GOT SKILLS AND THEY WANT TO BE RELEVANT MR GALVIN SAYS OF LOS ALAMOS COLLECTIVELY WE CAN HAVE A BIG IMPACT BUT THE INITIAL REPORTS WERE NOT ENCOURAGING MOTOROLA UNIVERSITY CONSULTANTS PRODUCED A BLISTERING 25PAGE CRITIQUE CYNICISM AND SKEPTICISM PREVAILED AMONG THE STAFF THE LAB WAS TOO HIERARCHICAL BAD NEWS NEVER TRAVELED UPWARD AND PAY WASN'T TIED TO PERFORMANCE WITH NO MISTAKES MOTOROLA PEOPLE PREDICTED THE LAB COULD BE TRANSFORMED INTO A COMPETITIVELY RUN BUSINESS IN AT LEAST FOUR OR FIVE YEARS ALTHOUGH SEVEN IS MORE LIKELY BUT LOS ALAMOS MANAGERS WORRY THEY DON'T HAVE THAT MUCH TIME THEY FEAR THE FEDERAL GOVERNMENT SOON WILL UNDERTAKE CONSOLIDATING THE NUCLEARWEAPONS LABS SANDIA AND LOS ALAMOS IN NEW MEXICO AND LAWRENCE LIVERMORE IN CALIFORNIA AS IT HAS MILITARY BASES WE REALLY GOT A WAKEUP CALL SAYS DR WHETTEN THE QUALITY DIRECTOR OF THE MOTOROLA REPORT AND THE CRITICISM HAS BEEN TRAUMATIC TO THE STAFF PEOPLE AT THE LAB THINK THEY ARE THE QUALITY STANDARDBEARERS AND THEIR CIRCUMSTANCES MAKE THEM DIFFERENT FROM ANYONE ELSE SAYS WILLIAM WIGGENHORN PRESIDENT OF MOTOROLA UNIVERSITY MOTOROLA U HAS HEARD THESE PROTESTS BEFORE THE ONLY WAY LOS ALAMOS IS DIFFERENT SAYS MICHAEL COLEMAN A MOTOROLA CONSULTANT WORKING AT THE LAB IS IN THE SIZE OF ITS BUREAUCRACY THICK LAYERS THAT NOT A LOT OF COMPANIES COULD AFFORD SIMPLE DECISIONS MOTOROLA FOUND REQUIRE SEVEN SIGNATURES AT LOS ALAMOS A SENIOR MANAGER MUST APPROVE BUYING A DOZEN DOUGHNUTS FOR A MEETING OVERSIGHT BY THE ENERGY DEPARTMENT GETS LUDICROUS LAB MANAGERS COMPLAIN WE HAVE CHECKERS CHECKING THE CHECKERS SAYS ONE TO BEAT THE SYSTEM REQUIRES GUILE JIM HOLT A MANAGER WHO NEEDED A BUILDING TO HOUSE SEVERAL SCIENTISTS COULDN'T WAIT THE SEVERAL YEARS IT TAKES TO FILE AND GAIN APPROVAL OF BUDGET ENVIRONMENTALIMPACT AND OTHER FORMS TO POUR A CONCRETE FOUNDATION SO HE HAD ENGINEERS STUDY PUTTING UP A WALL AND ACCIDENTALLY TIPPING IT OVER HE EVENTUALLY OPTED FOR AN INFLATABLE BUILDING CLASSIFIED AS TEMPORARY THAT HE DIDN'T NEED TO RUN THROUGH THE BUREAUCRATIC GANTLET AND 50 YEARS OF TRADITION FORGED ITS OWN CHAINS LOS ALAMOS WHICH HOUSES SOME OF THE MOST SOPHISTICATED COMPUTER EQUIPMENT IN THE WORLD DEPENDED UPON HAND DELIVERY TO CARRY INHOUSE MAIL AMONG THE LAB'S 2000 BUILDINGS UNTIL THIS YEAR NOW LOS ALAMOS HAS EASYTOUSE ELECTRONIC MAIL AMONG OTHER INNOVATIONS THE MOTOROLA TEAM TARGETED A SMALL BUT CRITICAL DEPARTMENT THE OPERATION HANDLING TRITIUM A MAJOR RADIOACTIVE COMPONENT OF NUCLEAR WARHEADS DIFFERENT BUILDINGS HAD DIFFERING REQUIREMENTS FOR PROTECTIVE CLOTHING FOR EXAMPLE AND DIFFERENT WAYS OF MONITORING SMOKESTACK EMISSIONS WE HAD FIVE ORGANIZATIONS DOING THINGS FIVE DIFFERENT WAYS SAYS ALLEN VALENTINE HEAD OF THE TRITIUM GROUP NOW WE HAVE COME TOGETHER WITH ONE PLAN THE MOTOROLA U REENGINEERING STRATEGY REVOLVED AROUND A SIXDAY CLASSROOM PROGRAM FOR 30 SENIOR MANAGERS DIVIDED IN HALF THREE DAYS OF AS IS FOLLOWED BY THREE MORE OF SHOULD BE ITS COMMITMENT TO CHANGING ITS CULTURE PROMPTED LOS ALAMOS TO PERMIT A REPORTER TO SIT IN ON THE REVAMPING SESSIONS AN IDEA THAT ONCE WOULD HAVE BEEN UNTHINKABLE IN THE FIRST THREE DAYS LAB MANAGERS BEGAN WRESTLING WITH ISSUES NEVER BEFORE QUESTIONED FROM WHY THE LAB SPENDS 50000 A YEAR TO HAVE KLEENEX ON TABLES DURING MEETINGS TO WHO SHOULD BE ULTIMATELY RESPONSIBLE FOR NUCLEAR SAFETY TO CONVINCE MANAGERS OF HOW BAD THINGS HAVE GOTTEN MOTOROLA U'S SANDY AUSTIN A MOTOROLA FACILITATOR IN THE JARGON OF THE QUALITY EXPERTS AND DR COLEMAN SKETCH A LAB ORGANIZATION CHART ON THE WALL IT RAPIDLY BECOMES SO CONFUSING IT AMAZES EVEN THOSE WHO MANEUVER THROUGH THE SYSTEM DAILY HIRING A NEW EMPLOYEE FOR EXAMPLE CAN TAKE AS LONG AS A YEAR THERE ARE THOUSANDS OF JOB DESCRIPTIONS AND MANY HIRING DECISIONS MUST BE APPROVED BY THE LAB'S SECONDINCOMMAND DEPUTY DIRECTOR JAMES JACKSON IF I NEEDED A NEW SEMICONDUCTOR ENGINEER AND HAD TO WAIT A YEAR TO GET ONE WE'D BE OUT OF BUSINESS PERIOD MOTOROLA'S DR COLEMAN SAYS DURING THE SESSION BUT AT ITS HEART THE DISCUSSIONS SHOW THE LAB'S OPERATIONAL PROBLEMS REVOLVE AROUND DEEP DIVISIONS BETWEEN THE LAB'S VAUNTED SCIENTIFIC AND TECHNICAL WORKERS AND THE SUPPORT AND SERVICE PERSONNEL BOTH SIDES SAY THE OTHER IS PAID TOO MUCH FOR TOO LITTLE WORK SCIENTISTS COMPLAIN THEY SPEND TOO MUCH TIME FRETTING OVER EVERYTHING FROM PLUMBING TO PERSONNEL WHILE NONSCIENTISTS GRIPE THAT THE SCIENTISTS CONSTANTLY CHANGE THE REQUIREMENTS FOR A JOB AND DON'T TRUST THEM TO DO THE JOB RIGHT IT'S A PSYCHOLOGICAL MINDSET WE'VE SEEN IN OTHER GOVERNMENT FACILITIES MS AUSTIN TELLS THE GROUP BY THE THIRD DAY THE TEAM HAS COME UP WITH A LIST OF 189 PROBLEMS WHEN THE GROUP RECONVENES FOR THE SHOULD BE SESSIONS IDEAS FOR FIXING THOSE PROBLEMS COME RAPIDFIRE92 IN THE FIRST 25 MINUTES REMOVE ALL MANAGERS WHO INTENTIONALLY BREAK POLICY HOLD EVERY EMPLOYEE ACCOUNTABLE RETURN SCIENTISTS TO SCIENCE THE MANAGERS ARE BUBBLY I SEE A SMALL LIGHT AT THE END OF THE TUNNEL CHORTLES HANS RUPPEL A THEORETICAL PHYSICIST AND I'M LIKE A MOTH I'M HEADING RIGHT FOR IT BUT DR COLEMAN FORCES THE GIDDY GROUP TO BACK UP AND FOCUS ON THE CORE ISSUE WHY DOES AND WHY SHOULD LANL EXIST HE HOLDS UP A WALLETSIZED PLASTIC CARD CARRIED BY ALL 100000 MOTOROLA EMPLOYEES THAT CONTAINS THE COMPANY'S PHILOSOPHY AND GOALS OFFERING A COHESIVE FRAMEWORK FOR EVERY DECISION THE LOS ALAMOS MANAGERS FINGER IT IN WONDER BUT WHEN THE MOTOROLA TEAM ASKS THE LOS ALAMOS PEOPLE TO CRAFT A STATEMENT OF PURPOSE FOR THE LAB THE GROUP CAN'T AGREE AND THE DISCUSSION DISINTEGRATES INTO BITTER CRITICISM OF TOP LAB MANAGEMENT INCLUDING DR JACKSON THE DEPUTY DIRECTOR WHO IS NOW IN THE ROOM FOR HOLDING TOO TIGHT A REIN ON AUTHORITY WE HAVE 17 HOURS TWO MINUTES LEFT AND I'M GETTING A LITTLE NERVOUS SAYS AL TIEDMAN THE ASSOCIATE DIRECTOR FOR OPERATIONS THE NEXT DAY MR TIEDMAN OFFERS HIS OWN PLAN FOR BRIDGING THE GULF BETWEEN TECHNICAL AND SUPPORT WORKERS CENTRAL COORDINATION OF SUPPORT ACTIVITIES AND MORE SUPPORT PEOPLE IN THE FIELD TO ADDRESS THE TECHNICAL SIDE'S SPECIALIZED NEEDS THE IDEA CATCHES ON BUT SOME WONDER WHETHER THE PEOPLE IN THE ROOM HAVE THE POWER TO ENFORCE THE CHANGE CAN WE SLAP SOMEONE WHO DOES AN ENDRUN ASKS RICHARD BURICK A LONGTIME TECHNICAL LEADER CAN WE REALLY DO THAT BY THE FINAL DAY THE ISSUE HAS BOILED DOWN TO ACCOUNTABILITY CAN THE LAB LIKE ANY BUSINESS HOLD PEOPLE TO THEIR GOALS FORCE THEM TO WORK WITH OTHERS AND ACT FOR THE GOOD OF THE ENTIRE LAB INSTEAD OF JUST THEIR OWN PET PROJECTS LOS ALAMOS PUTS OUT SO MANY PROPOSALS EACH YEAR EACH SAPPING RESOURCES THAT ONLY 25 GET FUNDED THAT POOR A RECORD IS A DISASTER DR COLEMAN TELLS THEM WHEN IT COMES DOWN TO MAKING REALLY TOUGH DECISIONS SUCH AS DUMPING UNPROMISING PROJECTS HE SAYS SHARPLY YOU SAY IT'S TOO TOUGH AND YOU DUCK SOBERED THE GROUP RETURNS TO CRAFTING A LIST OF CORE ACTIVITIES LIKE PROGRAM ASSURANCE SECURITY MAINTENANCE BUYING STUFF AND DOING SCIENCE AND TECHNOLOGY BUT NOT EVERYONE IS CONVINCED WE'RE SITTING HERE TRYING TO REINVENT THE DANG THING COMPLAINS DR JACKSON WHO WOULD RATHER JUST PULL IDEAS FROM MOTOROLA SLUMPING LOWER IN HIS CHAIR HE SAYS HE WANTS SOMETHING MORE SPECIFIC LIKE WHAT HAPPENS IF THE LAB CUTS AN ENTIRE LEVEL OF MANAGERS AGAIN FRUSTRATED PARTICIPANTS START HURLING SHARP JABS UP AND DOWN THE MANAGEMENT LADDER SOME SAY THEY ARE LOSING FAITH IN MOTOROLA'S PROCESS BUT DURING A BREAK MS AUSTIN REMAINS CONFIDENT NOW DO YOU SEE HOW PAINFUL CHANGE IS SHE SAYS TWO STEPS FORWARD AND ONE STEP BACK DOWN TO THE LAST THREE HOURS PARTICIPANTS ARE SWEATING MORE AND SPEAKING FASTER EACH MANAGER EYES THE CLOCK ON THE WALL THE PRESSURE THEY FEEL FOR THE FUTURE OF THEIR OWN JOBS AS WELL AS THE CHARGE TO RESCUE THE INSTITUTION IS PALPABLE BY THE END OF THE DAY THE GROUP HAS CRAFTED A SIMPLER ORGANIZATIONAL MODEL TO RUN THE LAB ONE BASED ON MR TIEDMAN'S CONCEPT TECHNICAL PEOPLE WILL HAVE TO RELINQUISH SOME OF THEIR RESPONSIBILITIES TO SUPPORT PEOPLE AND SUPPORT PEOPLE WILL HAVE TO GET OUT TO THE LAB BUILDINGS AND CUSTOMIZE FUNCTIONS FOR THEIR CUSTOMERS DECISIONS WILL BE MADE AT LOWER LEVELS AND MANAGERS WILL HAVE TO BE HELD ACCOUNTABLE MANY ARE PLEASED WITH THE PROSPECTS FOR REFORM BUT SOME SCIENTISTS CRAVE MORE SPECIFICS IT SEEMS AWFULLY NEBULOUS TO ME AS A PRODUCT SAYS DR RUPPEL WITH A SHRUG THERE IS A LOT OF SKEPTICISM OUT THERE ABOUT FINDING SOLUTIONS AGREES EPPIE TRUJILLO A PURCHASING MANAGER MANAGEMENT IS VERY GOOD AT DEFINING PROBLEMS BUT NEVER SEEING SOLUTIONS THROUGH YET DR JACKSON UNDER PRESSURE TO PUT THE REMAKING OF THE LAB INTO ACTION SOON EMERGES UPBEAT WE'RE GOING TO BE SO MUCH SMARTER ONCE WE TRY SOME OF THESE THINGS HE SAYS AT SOME POINT YOU HAVE TO QUIT GUMMING THE BULLET AND BITE IT 9307150055 930715 INTERNATIONAL BRIEF LION NATHAN LTD NEW ZEALAND COMPANY SEEKS SOME ASSETS OF SA BREWING NEW ZEALAND'S LION NATHAN LTD IS BIDDING FOR THE BREWING ASSETS OF SA BREWING HOLDINGS LTD OF AUSTRALIA AND IS RAISING 2592 MILLION NEW ZEALAND DOLLARS US142 MILLION TO FINANCE SUCH AN ACQUISITION THE MOVE POSITIONS THE NEW ZEALAND LIQUOR COMPANY TO OVERTAKE FOSTER'S BREWING GROUP LTD AS AUSTRALIA'S LARGEST BREWER LION BECAME A SERIOUS RIVAL FOR FOSTERS IN 1990 WHEN IT BOUGHT THE TOOHEYS AND OTHER BRANDS FROM THE CRUMBLING BOND BREWING EMPIRE FORMERLY CONTROLLED BY TYCOON ALAN BOND FOR AN INITIAL CASH INJECTION OF 300 MILLION AUSTRALIAN DOLLARS US201 MILLION THOSE BRANDS GIVE LION MORE THAN 40 OF AUSTRALIA'S BEER MARKET IF LION SECURES CONTROL OF THE BREWING ASSETS IT WILL GAIN A DOMINANT SHARE OF THE BEER BREWING MARKETS IN THE AUSTRALIAN STATES OF QUEENSLAND WESTERN AUSTRALIA AND SOUTH AUSTRALIA LION WOULDN'T DISCLOSE HOW MUCH IT IS BIDDING FOR THE AUSTRALIAN ASSETS 9307150054 930715 BUSINESS BRIEF TERRA INDUSTRIES INC COMPANY EXPECTS TO POST RISE IN 2NDQUARTER PROFIT TERRA INDUSTRIES INC THE SIOUX CITY IOWA FERTILIZER AND FARM CHEMICAL MAKER AND DISTRIBUTOR EXPECTS TO REPORT HIGHER SECONDQUARTER EARNINGS DESPITE THE FLOODING ACROSS THE UPPER MIDWEST BURTON M JOYCE PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT EARNINGS ARE GOING TO BE UP FOR THE SECOND QUARTER FROM THE 275 MILLION OR 40 CENTS A SHARE EARNED A YEAR EARLIER HE DECLINED TO BE MORE SPECIFIC THE YEAREARLIER RESULTS WERE RESTATED TO REFLECT DISCONTINUED OPERATIONS TERRA IS EXPECTED TO RELEASE ITS SECONDQUARTER RESULTS NEXT WEEK CHARLES KAPLAN AN ANALYST WITH HERZOG HEINE GEDULD IN NEW YORK ESTIMATED THAT TERRA WILL REPORT SECONDQUARTER NET INCOME OF 45 CENTS TO 50 CENTS A SHARE MR JOYCE SAID THAT THE SECONDQUARTER GAIN CAME PARTLY FROM STRONG SALES IN THE EASTERN CORN BELT THAT STRETCHES ACROSS OHIO INDIANA AND PARTS OF ILLINOIS WHICH HAS ESCAPED THE WORST OF THE HEAVY RAINS AND FLOODING 9307150053 930714 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 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 9307150052 930715 CHEAP IMITATION PERRIGO'S KNOCKOFFS OF NAMEBRAND DRUGS TURN INTO BIG SELLERS ITS VERSIONS OF ADVIL LISTERINE ARE SOLD AS STORES' OWN AT ROCKBOTTOM PRICES PINK BISMUTH' FOR INDIGESTION BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL RUSHING THROUGH THE CROWDED AISLES OF A GIANT EAGLE SUPERMARKET IN PITTSBURGH RECENTLY BARBARA SWIFT GRABBED FOR A BOTTLE OF ADVIL PAIN RELIEVER AND TOSSED THE IBUPROFEN TABLETS INTO HER SHOPPING CART IT WASN'T UNTIL SHE GOT HOME THAT SHE REALIZED SHE HAD BOUGHT A STOREBRAND VERSION OF THE AMERICAN HOME PRODUCTS CORP ORIGINAL AT FIRST THE 39YEAROLD SECRETARY WAS ANNOYED THE STORE BRAND SHE REALIZED MUST HAVE BEEN PLACED RIGHT NEXT TO THE ADVIL SHE WAS LOOKING FOR THEN I TRIED IT AND IT WAS JUST AS GOOD AS ADVIL SHE SAYS AND IT WAS CHEAPER AND SO MS SWIFT JOINED THE RANKS OF THE CONVERTED TO PRIVATELABEL BRANDS AND ADDED TO THE COFFERS OF A LITTLEKNOWN COMPANY CALLED PERRIGO CO BASED IN THE RURAL MICHIGAN HAMLET OF ALLEGAN PERRIGO IN THE PAST DECADE HAS ROCKETED TO THE TOP OF THE PRIVATELABEL NONPRESCRIPTION DRUG INDUSTRY WITH 410 MILLION IN FISCAL 1992 SALES IT SUPPLIES NO LESS THAN 857 KNOCKOFFS OF MAJOR BRANDS TO CHAINS LIKE WALMART STORES INC KMART CORP AND RITE AID CORP THE STORES SELL THE PRODUCTS UNDER THEIR OWN LABELS AT 30 TO 50 LESS THAN NAMEBRAND PRICES LOOKING FOR PROCTER & GAMBLE CO'S PEPTOBISMOL ANTACID TRY PERRIGO'S PINK BISMUTH INSTEAD IN THE MARKET FOR P&G'S OIL OF OLAY CHECK OUT PERRIGO'S OIL OF BEAUTY LOTION PERRIGO'S EXTRA STRENGTH EFFERVESCENT DENTURE CLEANER SEEMS LIKE A DEAD RINGER FOR WARNERLAMBERT CO'S EXTRA STRENGTH EFFERDENT AND AMONG PERRIGO'S OTHER POPULAR LINES ARE VERSIONS OF MILES INC'S FLINTSTONES VITAMINS AND AH ROBINS CO'S DIMETAPP ANTIHISTAMINE PERRIGO INSISTS IT ISN'T TRYING TO DUPLICATE EXISTING BRANDS EXECUTIVES PAINSTAKINGLY AVOID TERMS LIKE KNOCKOFFS CHOOSING EQUIVALENTS OUR FOCUS IS ON BEING SIMILAR BUT NOT BEING THE SAME TO HELP THE CONSUMER SEE WHAT IT'S COMPARABLE TO SAYS MICHAEL J JANDERNOA PERRIGO'S 43YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE'RE NOT TRYING TO TRICK ANYBODY HOGWASH SAY EXECUTIVES AT GIANTS LIKE WARNERLAMBERT AND AMERICAN HOME PRODUCTS WHO INSIST THAT THEIR BIGNAME BRANDS ARE WORTH MORE BECAUSE OF THEIR CONSISTENTLY HIGH QUALITY PERRIGO HAS BATTLED AT LEAST FOUR MAJOR LAWSUITS CLAIMING IT DELIBERATELY TRIES TO MAKE ITS PRODUCTS LOOK LIKE THE REAL THING TO CONFUSE CUSTOMERS A VIOLATION OF FEDERAL LAW THE COMPANY SAYS ONE SUIT IS CURRENTLY PENDING BROUGHT BY WARNERLAMBERT OVER A KNOCKOFF OF ITS COOL MINT LISTERINE MOUTHWASH THE PERRIGO VERSION SOLD BY WALMART UNDER THE RETAILER'S HOUSE BRAND EQUATE IS LABELED BLUE MINT ANTISEPTIC MOUTH RINSE PERRIGO WON'T COMMENT ON LITIGATION ALTHOUGH MR JANDERNOA DOES SAY THAT THE COMPANY IS THREATENED WITH SUITS ABOUT ONCE OR TWICE A YEAR AND THAT 90 HAVE BEEN SETTLED IN A SHORT PERIOD OF TIME SO FAR THE COMPANY'S RECORD WHEN IT COMES TO LEGAL CHALLENGES HAS BEEN MIXED IT WON A 1986 SUIT BY ADVIL MAKER AMERICAN HOME PRODUCTS AFTER A JUDGE DETERMINED THAT PERRIGO'S IBUPROFEN TABLETS DIDN'T CONFUSE SHOPPERS BECAUSE THEY HAD A DIFFERENT SHAPE AND WEREN'T AS GLOSSY BUT PERRIGO HAD TO PAY 125000 AND CHANGE SOME PACKAGING TO SETTLE A 1984 ACTION BROUGHT BY SCHERINGPLOUGH CORP OVER PERRIGO'S VERSIONS OF CHLORTRIMETON ALLERGY TABLETS AFRIN NASAL SPRAY AND OTHER PRODUCTS AND AFTER PFIZER INC'S ORAL RESEARCH LABORATORIES SUED OVER PERRIGO'S VERSION OF PLAX MOUTHWASH IN 1988 PERRIGO AGREED IN A SETTLEMENT TO MODIFY THE LABEL BOTTLE SHAPE AND INGREDIENTS PERRIGO PUSHES THE LIMITS OF LEGALITY HOPING NOT TO CROSS OVER THE LINE CHARGES STUART SINDER A NEW YORK ATTORNEY WHO REPRESENTED ORAL RESEARCH AND PFIZER AT PERRIGO MR JANDERNOA HIMSELF READILY CONCEDES THAT THE CHALLENGE IS NOT GETTING TOO CLOSE TO WHERE YOU'RE COPYING THE PACKAGING WHICH RAISES THE LEGAL ISSUE OF TRADE DRESS BUT HE INSISTS THAT HIS COMPANY DOESN'T CROSS THAT LINE PERRIGO STICKS WITH ITS AGGRESSIVE STRATEGY FOR GOOD REASON IT WORKS GENERIC PRODUCTS IN STARK BLACKANDWHITE PACKAGES WERE ALL THE RAGE FOR ABOUT THE BLINK OF AN EYE IN THE '70S BUT QUICKLY FADED AWAY BECAUSE OF THEIR REPUTATION AS LOWQUALITY CHARMLESS SUBSTITUTES PERRIGO PRODUCTS' CLOSE RESEMBLANCE IN BOTH LOOKS AND INGREDIENTS TO REAL BRANDS ON THE OTHER HAND HELPED BOOST SALES OF ITS NONPRESCRIPTION DRUGS BY 260 SINCE 1987 AND SALES OF ITS PERSONALCARE PRODUCTS BY 266 MEANWHILE MARKET SHARES OF SOME BIGNAME COUNTERPARTS HAVE REMAINED FLAT OR DECLINED TYPICAL OF PERRIGO'S CUSTOMER IS DONNA ROD A 28YEAROLD MOTHER OF TWO YOUNG GIRLS SHOPPING RECENTLY AT A DRUG EMPORIUM STORE IN MOORESTOWN NJ SHE DOESN'T THINK TWICE ABOUT REACHING FOR PERRIGO'S KNOCKOFF OF JOHNSON & JOHNSON'S INFANTS' TYLENOL ACETAMINOPHEN DROPS IF YOU READ THE LABELS YOU FIND THERE'S NOT MUCH OF A DIFFERENCE AT ALL AND LOOK AT THE SAVINGS SAYS MRS ROD POINTING TO A SMALL SIGN ON THE SHELF PROMOTING THE PERRIGOMADE DRUG EMPORIUM BRAND WHICH SAYS YOU SAVE 376 PERRIGO GREW TO BE THE DOMINANT PLAYER IN THE 3 BILLION PRIVATELABEL HEALTH AND BEAUTY AIDS BUSINESS FROM INAUSPICIOUS ROOTS FOUNDED 106 YEARS AGO BY LUTHER PERRIGO WHO PEDDLED CURATIVE ELIXIRS FROM A HORSEDRAWN CART IT REMAINED FOR MANY DECADES AFTERWARD EVERY BIT AS SLEEPY AS AGAN A REMOTE TOWN OF 4547 THAT STARTED TO CHANGE IN 1981 WHEN MR JANDERNOA A FORMER AUDITOR WHO HAD JOINED THE COMPANY TWO YEARS BEFORE HELPED ORCHESTRATE A LEVERAGED BUYOUT THROUGHOUT THE NEXT DECADE AS HE ROSE THROUGH THE COMPANY'S EXECUTIVE RANKS HE GUIDED THE SALE OF THE COMPANY A SECOND LEVERAGED BUYOUT SEVERAL ACQUISITIONS AND FINALLY IN 1991 AN INITIAL PUBLIC OFFERING THE STOCK ORIGINALLY PRICED AT 16 A SHARE HAS NEARLY TRIPLED IN PRICE IN OVERTHECOUNTER TRADING SINCE THEN YESTERDAY IT CLOSED AT 42 UNCHANGED A NUMBERS CRUNCHER AND LOCAL BOY WHO NEVER VENTURED FAR FROM HIS FAMILY'S MICHIGAN DAIRY FARM MR JANDERNOA WORKS FROM AN UNASSUMING OFFICE THAT IS ABOUT AS REGAL AS A HIGHWAY MOTEL LOBBY THOUGH HIS ALMOST 15 STAKE IN THE COMPANY IS VALUED AT MORE THAN 250 MILLION HE LIVES RELATIVELY MODESTLY WITH HIS WIFE SUE AN ELEMENTARY SCHOOL TEACHER AND THEIR THREE SONS IN GRAND RAPIDS WHERE HE COACHES YOUTH BASEBALL AND BASKETBALL TEAMS BUT HIS EARNEST SMALLTOWN MANNER COMBINED WITH THE ENTHUSIASM OF A BORN SALESMAN HAVE PAID OFF RETAILERS OFTEN LEFT COLD BY THE STANDOFFISH SENIOR EXECUTIVES AT BIG COMPANIES GUSH ABOUT ACCESSIBLE AND AMENABLE PERRIGO HE CAME AND SHOOK THE CUSTOMER'S HAND RAVES BOB LYONS SENIOR VICE PRESIDENT OF MARKETING AND MERCHANDISE OF COLUMBUS OHIO DRUG EMPORIUM INC REFERRING TO HIMSELF SO IMPRESSED WAS DEEPDISCOUNT DRUGSTORE CHAIN F&M DISTRIBUTORS INC WITH ITS 11 PERRIGOMADE PRODUCTS THAT IT IS ADDING MORE LINES I CAN PICK UP THE PHONE AND TALK TO THE PEOPLE AT PERRIGO AND SAY I HAVE A PROBLEM AND NEED ACTION WITHIN 24 HOURS THINGS ARE ON MY DESK IMMEDIATELY SAYS EARL WEISSERT PRESIDENT OF THE WARREN MICH CHAIN WITH THE OTHER COMPANIES THERE'S MORE RED TAPE AND LAYERS TO GO THROUGH PERRIGO'S FLEXIBILITY ALLOWS IT TO QUICKLY CHANGE OR CUSTOMIZE PRODUCTS FOR THE 2550 STORE CHAINS AND INDEPENDENT RETAILERS IT SERVES WHEN DRUG EMPORIUM WHICH ONLY RECENTLY STARTED OFFERING PRIVATE LABELS WANTED TO GIVE CUSTOMERS BONUS OUNCES IN ITS ANALGESICS LINE PERRIGO OBLIGINGLY DESIGNED SPECIAL LABELS AND AFTER P&G'S NYQUIL COUGH SYRUP SWITCHED TO AN ABSTRACT TRIANGULAR SHAPE FROM A BOTTLE PICTURED ON THE BOX RETAILERS ASKED PERRIGO TO DROP THE PICTURE OF A BOTTLE ON ITS NITE TIME COUGH SYRUP BOXES PERRIGO ARTISTS CAME UP WITH SEVERAL ALTERNATIVES INCLUDING SOME ECHOING THE TRIANGLE DESIGN ON P&G'S NEW BOX AND GAVE EACH RETAILER A CHOICE MR JANDERNOA TAKES A SIMILARLY ACCESSIBLE APPROACH WITH EMPLOYEES SPENDING NIGHTS ON PRODUCTION LINES AND HOLDING QUARTERLY MEETINGS WITH WORKERS ON ALL SHIFTS ONE INSTITUTIONAL INVESTOR RECALLS VISITING PERRIGO'S PLANT AND SEEING A PHOTO OF MR JANDERNOA PINNED UP IN AN EMPLOYEE'S CUBICLE WILLIAM C SWANEY FORMER PERRIGO CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO RECRUITED MR JANDERNOA AND REMAINS A DIRECTOR CREDITS HIMSELF FOR ASSEMBLING A POWERFUL MANAGEMENT TEAM AND MR JANDERNOA FOR MAKING IT WORK MIKE'S LEGACY IS EMPOWERMENT OF ALL THE PEOPLE SAYS MR SWANEY MIKE'S THE GREATEST CHEERLEADER AND LEADER NONE OF HIS CHEERLEADING WOULD SELL SO MUCH AS A PACKAGE OF COUGH DROPS IF IT WEREN'T FOR PERRIGO'S LOW PRICES THE COMPANY KEEPS THEM THAT WAY BY NOT ADVERTISING AND BY DOING LITTLE ORIGINAL RESEARCH INSTEAD IT RELIES ON ITS CHEMISTS TO SIMPLY TAKE APART MAJOR BRANDS AND THEN PUT THEM BACK TOGETHER AGAIN WITH A SLIGHT TWIST IN INGREDIENTS WHEN NECESSARY TO AVOID PATENT INFRINGEMENT PERRIGO ALSO CONCENTRATES ON MAKING ITS BRAND EQUIVALENTS CHEAPER AND FASTER FOR EXAMPLE COMPANY SCIENTISTS CAME UP WITH A TWOSTEP PROCESS TO MAKE TABLETS MORE EFFICIENTLY THAN THE STANDARD THREESTEP METHOD TO MANUFACTURE IBUPROFEN TABLETS PERRIGO COMPRESSES EQUALSIZE PARTICLES MANY BIG RIVALS FIRST MIX RAW MATERIALS OF UNEQUAL PARTICLE SIZE THEN COMBINE THEM SO THAT THE INDIVIDUAL PARTICLES ARE OF EQUAL SIZE AND FINALLY COMPRESS THEM INTO TABLETS THOSE COST EFFICIENCIES ALLOW THE KROGER CO CHAIN FOR EXAMPLE TO MARK UP ITS PERRIGOMADE IBUPROFEN BY 50 AND STILL SELL IT FOR 65 OF THE PRICE OF THE NATIONAL BRAND BY CONTRAST MAJOR IBUPROFEN BRANDS ARE MARKED UP A MERE 10 KROGER ALONG WITH WALMART AND THRIFT DRUG A UNIT OF JC PENNEY CO NOW PITCHES HOUSE BRANDS IN WEEKLY INHOUSE FLYERS THAT ONCE ONLY HIGHLIGHTED THE BEST BIGBRAND DEALS PERRIGO AND RETAILERS ARE BETTING THAT CONSUMERS WILL CONTINUE THEIR PENNYPINCHING WAYS REGARDLESS OF ANY UPTURN IN THE ECONOMY THE RECESSION TAUGHT SHOPPERS TO BUY BASED ON PRICE THEY FIGURE AND NOW THOSE SHOPPERS HAVE REALIZED THAT THE QUALITY OF INEXPENSIVE KNOCKOFFS CAN BE JUST FINE TOO THE BIGNAME BRANDS HAVE ALSO TAUGHT SHOPPERS TO BE MORE PRICECONSCIOUS SAY MARKETING EXECUTIVES BY RELYING EVER MORE HEAVILY ON CENTSOFF COUPONS TO SPUR SALES WITH SOME HELP FROM AN UNCERTAIN ECONOMY PRIVATELABEL SALES EXCLUDING APPAREL HAVE SURGED 15 A YEAR FOR THE PAST FIVE YEARS ACCORDING TO THE PRIVATE LABEL MANUFACTURING ASSOCIATION ALREADY 20 OF ALL FOOD AND CONSUMERPRODUCT SALES ARE OF PRIVATELABEL BRANDS ACCORDING TO THE ASSOCIATION AND PERRIGO HOPES DEMAND WILL CONTINUE TO GROW UNTIL IT IS COMPARABLE TO ENGLAND WHERE ONE IN THREE PURCHASES IS OF A PRIVATELABEL BRAND TO GET THAT KIND OF SUSTAINED GROWTH PERRIGO IS COUNTING ON SHOPPERS LIKE DALE RICHARDSON A 31YEAROLD NEW JERSEY STATE EMPLOYEE WHO COULD EASILY AFFORD TO PAY FOR FULLPRICE NAME BRANDS SHOPPING AT THE MOORESTOWN DRUG EMPORIUM ONE RECENT DAY SHE LOOKS AT A 349 BOTTLE OF PERRIGOMADE IBUPROFEN CAPLETS NEXT TO A SAMESIZE 719 BOTTLE OF ADVIL IF YOU'RE GETTING THE SAME THING SHE SHRUGS WHY PAY ALMOST TWICE AS MUCH 9307150051 930715 TECHNOLOGY & HEALTH MARION MERRELL TO REPORT 180 MILLION IN PRETAX CHARGES MAY CUT 13 OF JOBS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MARION MERRELL DOW INC FINALLY PUT A PRICE TAG ON ITS PREVIOUSLY ANNOUNCED PLAN TO CURTAIL EXPENSES BY DISCLOSING IT WILL REPORT A 180 MILLION PRETAX CHARGE AND ELIMINATE AS MANY AS 1300 JOBS THE CUTS WHICH THE PHARMACEUTICAL MAKER SAID ARE AIMED AT BRINGING ITS STAFF IN LINE WITH CURRENT BUSINESS REALITIES REPRESENT AS MUCH AS 13 OF THE KANSAS CITY MO COMPANY'S WORK FORCE THE PLANNED PURGE WHICH COULD CUT 1 OUT OF EVERY 8 EMPLOYEES DIDN'T COME AS MUCH OF A SURPRISE TO INVESTORS BUT THE COMPANY'S DEEP CUTBACKS UNDERSCORE THE DIFFICULTIES NOW CONFRONTING THE DRUG INDUSTRY AS WELL AS THE MORE SPECIFIC COMPETITIVE PROBLEMS THAT MARION MERRELL FACES LIKE ITS COMPETITORS MARION MERRELL'S RECENT EARNINGS HAVE BEEN HURT BY PRESSURE TO RESTRAIN PRICES THAT HAS MADE IT DIFFICULT FOR INDUSTRY PLAYERS TO FOLLOW THE HISTORICAL PRACTICE OF PERIODICALLY RATCHETING UP DRUG PRICES AND EARNINGS IN ADDITION MARION MERRELL SUFFERS FROM SOME PROBLEMS DISTINCTLY ITS OWN A NUMBER OF ITS BIGGEST PRODUCTS HAVE EITHER LOST PATENT PROTECTION OR WILL SHORTLY RENDERING THOSE PROFITABLE FRANCHISES PRONE TO CHALLENGES FROM GENERIC DRUG MAKERS COMPETITORS' NEWLY INTRODUCED PRODUCTS ARE ALSO PUTTING PRESSURE ON SOME OF ITS LINES AND BOTH PROBLEMS ARE INTENSIFIED BY THE FACT THAT MARION MERRELL HASN'T A LARGE NUMBER OF DRUGS IN ITS DEVELOPMENT PIPELINE CITING VERY TOUGH BUSINESS CONDITIONS MARION HAD IN EARLY MAY SIGNALED ITS INTENTION TO SIGNIFICANTLY REDUCE ITS STAFF AND IMPOSE OTHER COSTCUTTING MEASURES BUT THE COMPANY WHICH IS 71 OWNED BY DOW CHEMICAL CO HADN'T PREVIOUSLY SPELLED OUT THE SIZE OF THE CUTS OR THE CHARGE THE REALIGNMENT WOULD ENTAIL MARION MERRELL EXPECTS THE CHARGE TO TRIM ITS ASYETUNREPORTED SECONDQUARTER EARNINGS BY ABOUT 46 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY HAD RESTATED NET INCOME OF 197 MILLION OR 70 CENTS A SHARE ON SALES OF 906 MILLION THE MOVES ANNOUNCED YESTERDAY COMBINED WITH OTHER STEPS ALREADY IN PLACE WILL PERMIT THE COMPANY TO CUT ABOUT 250 MILLION IN ANNUAL COSTS COMPARED WITH 1992 LEVELS THE COMPANY PROJECTED PARENT DOW CHEMICAL ESTIMATED THAT MARION'S CHARGE REDUCED ITS PERSHARE SECONDQUARTER EARNINGS BY ABOUT 30 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MARION MERRELL SHARES INCHED UP 125 CENTS OR 07 TO 17375 WHILE DOW SHARES ROSE 625 CENTS OR 11 TO 5750 FROM 1100 TO 1300 JOBS WILL BE CUT FROM MARION MERRELL'S FULLTIME WORK FORCE OF 9800 DETAILS OF HOW EACH DIVISION WILL BE HIT WEREN'T DISCLOSED ALTHOUGH THE COMPANY DID SAY 275 SALES REPRESENTATIVES AND MANAGERS WILL LOSE THEIR JOBS AT ITS 1500MEMBER FULLTIME SALES FORCE IN ADDITION THE COMPANY WILL HALVE ITS 400PERSON STAFF OF PARTTIME SALES REPS MOST OF THE DISMISSALS WILL OCCUR IN THE NEXT SEVERAL WEEKS SAID A SPOKESMAN THE COMPANY'S RESEARCH AND DEVELOPMENT TEAM WON'T BE SPARED FROM THE REENGINEERING OF THE COMPANY'S STRUCTURE HE SAID WE EXPECT TO FOCUS R&D MORE TIGHTLY THAN IT CURRENTLY IS TO HELP BOLSTER ITS ARRAY OF NEW DRUGS AT A FASTER RATE THAN IT COULD BY STARTING FROM SCRATCH IN ITS OWN LABS MARION MERRELL HAS MOVED IN RECENT MONTHS TO ALLY ITSELF WITH A NUMBER OF OVERSEAS AND DOMESTIC PHARMACEUTICAL CONCERNS WITH DRUGS WELL ALONG IN DEVELOPMENT THE COMPANY IS ALSO SEEKING TO BOOST ITS POSITION AS A PROVIDER OF DRUGS TO THE MANAGEDCARE MARKET IT RECENTLY AGREED TO ACQUIRE THE GENERIC DRUG BUSINESS OF RUGBYDARBY GROUP COS WITH WHOM IT LAST YEAR HAD FORMED A VENTURE TO PRODUCE A GENERIC FORM OF MARION'S CARDIZEM HEART MEDICATION FRED W LYONS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT THE COMPANY IS MOVING AGGRESSIVELY TO REALIGN OUR BUSINESS BOTH TO IMPROVE CURRENT RESULTS IN THE FACE OF RAPIDLY CHANGING CONDITIONS AND TO PREPARE FOR THE LONGERTERM OPPORTUNITIES THAT WE ENVISION IN THE SECOND HALF OF THE DECADE 9307150050 930715 US ENDS PROBE OF INTEL CORP'S TRADE PRACTICES FTC ALSO PLANS TO CONSIDER NEXT WEEK ALLEGATIONS MADE AGAINST MICROSOFT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL TRADE COMMISSION HAS ENDED ITS RESTRAINTOFTRADE INVESTIGATION OF INTEL CORP AND MAY SOON DECIDE THE FATE OF MICROSOFT CORP THE PERSONALCOMPUTER INDUSTRY'S OTHER ROBUST NEARMONOPOLY THE FTC DROPPED A TWOYEAR INFORMAL INVESTIGATION OF INTEL'S BUSINESS PRACTICES THAT WAS BEGUN AFTER SOME COMPETITORS CHARGED THE BIG SILICON VALLEY CHIP MAKER ENGAGES IN UNFAIR TRADE PRACTICES THE INTEL AND MICROSOFT ANTITRUST CASES HAVE BEEN CLOSELY WATCHED BECAUSE THEY INVOLVE BIG COMPUTER COMPANIES THAT DOMINATE THE MOST IMPORTANT AND LUCRATIVE TECHNOLOGY MARKETS WORLDWIDE THE INTEL DECISION RELAYED TO COMPANY OFFICIALS YESTERDAY APPEARS TO END THAT CASE THE FTC IS SCHEDULED WEDNESDAY TO AGAIN CONSIDER SIMILAR ALLEGATIONS AGAINST MICROSOFT THOUGH THE FTC POINTEDLY TOLD INTEL OFFICIALS IN A LETTER THAT IT HADN'T DETERMINED WHETHER A VIOLATION MAY HAVE OCCURRED THE AGENCY'S DECISION TO BACK OFF APPEARS TO SIGNIFY AN UNWILLINGNESS ON THE PART OF THE CLINTON ADMINISTRATION TO TAMPER WITH US SUCCESS STORIES LIKE INTEL AND MICROSOFT FOR INTEL BASED IN SANTA CLARA CALIF THE FTC'S DECISION NOT TO PRESS FURTHER IN THE CASE LIFTS A CLOUD THAT HAS FOLLOWED THE COMPANY SINCE 1991 SINCE IT WAS FIRST NOTIFIED BY AGENCY OFFICIALS THAT THE FTC WOULD CONDUCT A NONPUBLIC ANTITRUST INVESTIGATION OF INTEL BUSINESS PRACTICES AMONG OTHER THINGS THE FTC HAS LOOKED INTO AN ARBITRATION CASE BETWEEN INTEL AND ARCHRIVAL ADVANCED MICRO DEVICES INC A SUNNYVALE CALIF COMPANY THAT HAS AN ANTITRUST SUIT PENDING AGAINST INTEL IN THE MONTHS AFTER THE INQUIRY BEGAN INTEL OFFICIALS SAID THEY WERE MADE TO PROVIDE SOME 250000 DOCUMENTS THE OFFICIALS SAID THE DATA DETAILED SUCH THINGS AS THE COMPANY'S LONGSTANDING TRAINING PROGRAMS AIMED AT KEEPING EMPLOYEES FROM VIOLATING ANTITRUST LAWS THROUGH SUCH ILLEGAL PRACTICES AS TYING OR SELLING ONE PRODUCT ONLY AS A PART OF A PACKAGE WITH ANOTHER SOME OF INTEL'S RIVALS INCLUDING CYRIX CORP OF RICHARDSON TEXAS HAVE CHARGED THAT INTEL HAS ENGAGED IN TYING AN ALLEGATION INTEL VIGOROUSLY DENIED IN A TERSE TWOPARAGRAPH LETTER TO ANDREW S GROVE INTEL CHIEF EXECUTIVE OFFICER MARY LOU STEPTOS ACTING DIRECTOR OF THE FTC'S BUREAU OF COMPETITION WROTE UPON FURTHER REVIEW OF THIS MATTER IT NOW APPEARS THAT NO FURTHER ACTION IS WARRANTED BY THE COMMISSION AT THIS TIME INTEL TOOK THIS AS A VICTORY WE FEEL REAL GOOD F THOMAS DUNLAP INTEL VICE PRESIDENT AND GENERAL COUNSEL SAID IN A CONFERENCE CALL WITH REPORTERS THE FTC'S DROPPING OF THE INQUIRY SHOWS THAT OUR POLICIES AND OUR TRAINING IS WORKING MR DUNLAP ADDED THAT THE ONLY THING INTEL WOULD BE DOING DIFFERENTLY NOW IS TO LOOK AT ITS OVERALL TRAINING PROGRAMS TO SEE IF ANY NEED BEEFING UP OTHERWISE HE SAID WE WILL BE DOING THE SAME THING WE HAVE ALWAYS BEEN DOING AS FOR MICROSOFT THE FTC PREVIOUSLY DEADLOCKED 22 ON WHETHER TO TAKE ACTION AGAINST THE SOFTWARE GIANT IF THE COMMISSION AGAIN CAN'T REACH A DECISION AT ITS NEXT MEETING WEDNESDAY THAT DOESN'T NECESSARILY MEAN THE END OF POSSIBLE FEDERAL ACTION SEN HOWARD METZENBAUM D OHIO CHAIRMAN OF THE SENATE ANTITRUST COMMITTEE SAID YESTERDAY THAT IF THE FTC DEADLOCKS AGAIN THE MICROSOFT CASE SHOULD BE REFERRED TO THE JUSTICE DEPARTMENT ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID A JUSTICE DEPARTMENT INVESTIGATION OF MICROSOFT ISN'T ACTIVELY UNDER CONSIDERATION AND WOULDN'T BE CONSIDERED UNTIL THE FTC ACTED THE FTC AND THE JUSTICE DEPARTMENT HAVE AN ESTABLISHED CLEARANCE PROCESS TO DECIDE WHICH AGENCY HANDLES ANTITRUST CASES BOTH AGENCIES HAVE CONSIDERED COMPUTER CASES PREVIOUSLY DEADLOCKS IN COMMISSION CASES ARE RARE AS ARE REFERRALS FROM ONE AGENCY TO ANOTHER ANALYSTS SAY INVESTORS LONG AGO TOOK THE INTEL INQUIRY INTO ACCOUNT IN THEIR VALUATION OF THE COMPANY'S STOCK NEWS OF THE FTC DECISION CAME LATE IN THE DAY AND INTEL SHARES FELL 1125 TO 53375 IN NATIONAL OVERTHECOUNTER TRADING SOME OF INTEL'S COMPETITORS SAID THEY WEREN'T SURPRISED BY THE DECISION WHILE CYRIX PROVIDED INFORMATION TO THE FTC IT DIDN'T EXPECT AN ADVERSE RULING AGAINST INTEL LIFE GOES ON SAID A CYRIX SPOKESWOMAN YOU CAN'T SIT AROUND AND WHINE ABOUT IT THIS IS A HUGE MARKET AND IT CAN ABSORB MORE THAN ONE PLAYER CYRIX DOESN'T EXPECT THE FTC DECISION TO AFFECT CYRIX'S OWN ANTITRUST SUIT AGAINST INTEL SHE SAID THAT CASE IS EXPECTED TO GO INTO HEARINGS NEXT YEAR IN THE US DISTRICT COURT IN SHERMAN TEXAS IN THE SUIT CYRIX CHARGES THAT INTEL HAS CONSPIRED TO KEEP CYRIX OUT OF MARKETS FOR MICROPROCESSORS BY INTIMIDATING CYRIX'S CUSTOMERS AND DISTRIBUTORS CYRIX WHICH EXPECTS TO LAUNCH A PUBLIC OFFERING OF ITS STOCK THIS WEEK HAS MADE A PROFITABLE BUSINESS OUT OF MAKING INTELCOMPATIBLE CHIPS A SPOKESMAN AT ADVANCED MICRO DEVICES SAID THE FTC DECISION WOULDN'T CHANGE THE COMPANY'S ANTITRUST CASE AGAINST INTEL BUT OTHERWISE WOULDN'T COMMENT ON IT JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9307150049 930715 MARKETING & MEDIA ADVERTISING NORELCO CHOOSES THE INFOMERCIAL TO LAUNCH HAIRREMOVAL GADGET BY LAURA BIRD NORELCO THE STAID MARKETER BEST KNOWN FOR COMMERCIALS STARRING AN ANIMATED SANTA CLAUS SLEDDING ALONG ON AN ELECTRIC SHAVER IS BETTING ITS NEW PRODUCT CAN TAKE OFF ON ANOTHER VEHICLE THE INFOMERCIAL A FIRST FOR NORELCO AND ITS LONGTIME AD AGENCY D'ARCY MASIUS BENTON & BOWLES OF NEW YORK THE INFOMERCIAL INTRODUCES WOMEN TO SATINELLE NORELCO'S NEW HAIRREMOVAL GADGET OR EPILATOR WHICH SMOOTHS LEGS BY PULLING HAIR OUT AT THE ROOT LAUNCHING AN EPILATOR IS A DELICATE PROPOSITION MILLIONS OF WOMEN STILL HAVE VIVID AND PAINFUL MEMORIES OF THE EPILADY ANOTHER COMPANY'S PRODUCT THAT WENT FROM INSTANT HIT TO SPECTACULAR FLOP IN THE SPACE OF THREE YEARS IN THE LATE 1980S WOMEN IT SEEMED WILL ENDURE A LOT OF THINGS TO AVOID SHAVING BUT SELFINFLICTED EXCRUCIATING PAIN ISN'T ONE OF THEM FOR SATINELLE NORELCO AND ITS AGENCY HAVE DECIDED A SLICK 30SECOND SPOT CAN'T OVERCOME THAT KIND OF BAD PR THEY HOPE TO SURMOUNT THE EPILADY STIGMA BUT THAT WILL ALSO REQUIRE OVERCOMING THE AURA OF HUCKSTERISM THAT STILL SURROUNDS THE INFOMERCIAL FORM WE WERE A LITTLE SKEPTICAL ADMITS LEIGH ALEXANDER VICE PRESIDENT OF MARKETING AT NORELCO WHICH IS OWNED BY PHILIPS ELECTRONICS NV WITH OUR REPUTATION AND BRAND NAME WE DIDN'T WANT TO DO ANYTHING NEGATIVE SO WE JUST TREATED IT AS IF IT WERE A WONDERFUL NEW COMMERCIAL OR AN UPSCALE ENTERTAINING SHOW CONVINCED IT COULDN'T MAKE THE CASE FOR SATINELLE IN A TRADITIONAL PRINT AND TV CAMPAIGN NORELCO DECIDED TO SELL CONSUMERS ON SATINELLE EXCLUSIVELY THROUGH AN INFOMERCIAL THE AIM WAS TO PUT THE HIGH PRODUCTION VALUES AND STRATEGIC FOCUS OF A 30SECOND OR 60SECOND COMMERCIAL INTO THE MINDNUMBING 30MINUTE TALKSHOW FORMAT THAT HAS PROVED SUCCESSFUL FOR SCORES OF COSMETICS CAR WAXES AND KITCHEN TOOLS THE EFFORT IS A CURIOUS BLEND OF BREATHLESS INFOMERCIAL HYPE AND SOUND IF UNEXCITING PACKAGEDGOODS ADVERTISING THE SPOT OPENS WITH A LONGISH PROLOGUE OF WOMEN COMPLAINING ABOUT THE INCONVENIENCE OF LEGSHAVING AND THE DISCOMFORT AND EXPENSE OF LEGWAXING WHY CAN'T THEY THINK OF A BETTER WAY TO REMOVE THE HAIR FROM MY LEGS ONE WOMAN ON A TENNIS COURT WANTS TO KNOW I MEAN I STILL USE A RAZOR BLADE LIKE MY GRANDMOTHER DID 50 YEARS AGO SHE SAYS FINALLY OUT COMES ACTRESS DEBORAH SHELTON WHO PLAYED A MINOR CHARACTER ON DALLAS FROM 1984 TO 1987 YOU CAN HAVE ALL THE BEAUTIFUL LINGERIE IN THE WORLD BUT IT MEANS NOTHING IF YOUR LEGS AREN'T SOFT AND SMOOTH SHE SAYS IN THE OPENING MINUTES SHE INTRODUCES SATINELLE AND NORELCO A COMPANY WE'VE KNOWN FOR YEARS AS A LEADER IN PERSONAL GROOMING PRODUCTS BUT STILL KEEPS SATINELLE'S BASIC PREMISE A MYSTERY TRADITIONAL INFOMERCIALS PRESENT A PROBLEM AND PITCH THE PRODUCT AS THE SOLUTION WITHIN THE FIRST TWO MINUTES BUT NORELCO MINDFUL OF THE EPILADY FACTOR INTENTIONALLY WITHHOLDS DETAILS AT THE INFORMERCIAL'S START WE DIDN'T WANT TO SHOW THE PRODUCT WITHOUT EXPLAINING WHY IT WAS DIFFERENT FIRST SAYS JOEL FELDMAN PRESIDENT AND CHIEF EXECUTIVE OF FELDMAN & ASSOCIATES THE DMB&BOWNED INFORMERCIAL UNIT THAT THE AGENCY OPENED EARLIER THIS YEAR WE DIDN'T WANT VIEWERS SWITCHING OFF THE SHOW MS SHELTON THE ACTRESS PROCEEDS TO INTERVIEW THREE CONSUMERS WHO THE INFOMERCIAL NOTES IN A DISCLAIMER HAVE BEEN PAID TO APPEAR THEY CONTINUE DISCUSSING THE SATINELLE ONE EVEN DEMONSTRATES IT ON HER LEG AND ONLY THEN COMES AN ANIMATED EXPLANATION OF HOW IT WORKS UNLIKE EPILADY WHICH USES A COIL TO RIP HAIR OUT SATINELLE HAS A ROTATING HEAD WITH DISKS THAT GRAB EACH HAIR AND PULL IT OUT THE INFOMERCIAL ANIMATION MAKES THE PROCESS LOOK FAIRLY GENTLE AND WOMEN WHO DEMONSTRATE THE DEVICE IN THE SPOT EXCLAIM HOW EASY IT IS TO GLIDE OVER THE SKIN NORELCO SAYS WOMEN WILL EXPERIENCE A TINGLE THE FIRST COUPLE OF TIMES THEY USE IT THE SPOT GOES ON TO INCLUDE TAPED TESTIMONIALS FROM CONSUMERS AND EVEN A SEQUENCE OF TESTIMONIALS AND DEMONSTRATIONS TAPED IN A MALL THREE TIMES THE COMMERCIAL PART OF THE INFOMERCIAL GIVES VIEWERS THE CHANCE TO ORDER BUT NORELCO SAYS THAT THE POINT OF THIS INFOMERCIAL REALLY ISN'T TO CREATE ORDERS BIG NATIONAL RETAILERS LIKE RH MACY KMART AND SEARS ROEBUCK & CO WILL BE SELLING SATINELLE STARTING IN SEPTEMBER SAYS NORELCO PRESIDENT PATRICK DINLEY AND THE COMPANY DOESN'T WANT TO COMPETE WITH ITS OWN RETAILERS THE INFOMERCIAL DOES HOWEVER OFFER VIEWERS AN 800 NUMBER THEY CAN CALL TO PLACE ORDERS FOR THE NEW GADGET NORELCO HAS BEEN QUIETLY TESTING THE SATINELLE INFOMERCIAL SINCE LATE LAST MONTH AND THE PITCH WILL EVENTUALLY ROLL OUT NATIONWIDE ON INDEPENDENT STATIONS AND THREE CABLE NETWORKS THE NOSTALGIA CHANNEL THE INSPIRATIONAL CHANNEL AND IN WHAT NORELCO HOPES WON'T TURN OUT TO BE PROPHETIC COMEDY CENTRAL MR DINLEY SAYS THE SATINELLE LAUNCH IS A MULTIMILLIONDOLLAR EFFORT DECLINING TO ELABORATE ON THE SIZE OF THE BILLINGS LAUNCHING A NEW SHAVING PRODUCT WITH TRADITIONAL MEDIA COULD EASILY COST 15 MILLION EXECUTIVES ESTIMATE BUT CLEARLY THE SATINELLE INFOMERCIAL WILL COST FAR LESS TO AIR ON THE STATIONS IT CHOSE YET COST WASN'T A BIG CONSIDERATION ON THE SATINELLE SPOTGETTING ATTENTION WAS INSISTS IRA SCHWARTZ SENIOR VICE PRESIDENT AND GROUP DIRECTOR OF THE NORELCO BUSINESS AT DMB&B UNLIKE ORDINARY COMMERCIALS HE SAYS A VIEWER CHOOSES TO WATCH AN INFOMERCIAL OMNICOM GROUP'S DDB NEEDHAM SUCCESSFULLY DEFENDED ITS NEW YORK STATE LOTTERY ACCOUNT AFTER A SIXMONTH REVIEW BILLINGS ARE ESTIMATED AT 25 MILLION SIXTYFIVE NEW YORK STATE AGENCIES COMPETED FOR THE ACCOUNT FOR WHICH DDB HAS TURNED OUT ADS WITH THE SLOGAN HEY YOU NEVER NOW THE LOTTERY WASN'T SERIOUSLY EXPECTED TO LOOK ELSEWHERE ALTHOUGH THREE OTHER CONTENDERS GREY ADVERTISING BOZELL AND D'ARCY MASIUS BENTON & BOWLES WERE AIMING TO UPSET THE INCUMBENT DDB HOWEVER IS TAKING A PAY CUT THE NEW THREEYEAR CONTRACT STARTING OCT 1 BILLS 500000 LESS ANNUALLY THAN THE PREVIOUS PACT THE LOTTERY SAID IN A STATEMENT KFC CAMPAIGN PEPSICO'S KENTUCKY FRIED CHICKEN NOW KNOWN AS KFC IS INTRODUCING AN AD CAMPAIGN MONDAY FOR THE COLONEL'S ROTISSERIE CHICKEN FROM YOUNG & RUBICAM OF NEW YORK THE TEASER CAMPAIGN REVEALS THE DISCOVERY OF THE ROTISSERIE RECIPE WHICH KFC HAS DEVELOPED FOR A MORE EDUCATED MORE FEMALE AUDIENCE BILLINGS ARE EXPECTED TO BE ABOUT 55 MILLION THROUGH THE REST OF THE YEAR A KFC SPOKESMAN SAID THIS IS THE DIET PEPSI FOR KFC WHO'S NEWS HOUSTON EFFLER HAMPEL & STEFANIDES THE NEW YORK OFFICE OF HOUSTON EFFLER & PARTNERS OF BOSTON NAMED BARBARA L TITUS PRESIDENT MS TITUS LEAVES HER POST AS EXECUTIVE VICE PRESIDENT OF RESEARCH AND STRATEGIC PLANNING AT WPP GROUP'S SCALI MCCABE SLOVES WHERE SHE HAD WORKED FOR 17 YEARS ACCOUNT THE FRANKFURT OFFICE OF OMNICOM GROUP'S TBWA ADVERTISING WON THE ESTIMATED 13 MILLION EUROCARD CREDIT CARD ACCOUNT IN GERMANY PREVIOUSLY AT MWI THE HAMBURG GERMANY OFFICE OF PUBLICIS/FCB PR SHOP GUY SMITH IV FORMER CHIEF OPERATING OFFICER OF THE NEW YORK OFFICE OF WPP GROUP'S HILL & KNOWLTON AND A FORMER PHILIP MORRIS COS PUBLIC RELATIONS EXECUTIVE IS OPENING UP A PR AND PUBLICAFFAIRS AD AGENCY CALLED SMITH WORLDWIDE IN NEW YORK AND NASHVILLE GUY SMITH IS THE CHAIRMAN THE OTHER PRINCIPALS REUBEN M SMITH AND S JANE SMITH ARE HIS UNCLE AND AUNT 9307150048 930715 WEDNESDAY'S MARKETS MARKETS BREATHE A SIGH OF RELIEF OVER INFLATION BY STEVEN E LEVINGSTON AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL A SPARKLING BOND MARKET RALLY TRIGGERED BY TWO DAYS OF REASSURING INFLATION DATA SENT SMALL AND LARGE STOCKS ROCKETING HIGHER THE NASDAQ COMPOSITE INDEX BARRELED TO A RECORD AND THE DOW JONES INDUSTRIAL AVERAGE FLIRTED WITH A NEW HIGH THE DOLLAR FELL THE NASDAQ COMPOSITE JUMPED 402 TO A RECORD 71249 WHILE THE DOW INDUSTRIALS GAINED 2711 TO 354255 WITHIN STRIKING RANGE OF THEIR ALLTIME HIGH OF 355483 STANDARD & POOR'S 500STOCK INDEX ROSE 199 TO 45008 STILL SHY OF ITS RECORD OF 45633 YESTERDAY'S FIREWORKS WERE SPARKED BY A REPORT SHOWING CONSUMER PRICES UNCHANGED IN JUNE THAT CAME ONE DAY AFTER ANOTHER REPORT SHOWING A DECLINE IN JUNE PRODUCER PRICES BOND TRADERS CELEBRATED THE INFLATION DATA BY DRIVING THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE DOWN TO 656 FROM 661 ON TUESDAY THAT IS THE LATEST IN A RECENT STRING OF LOWS SINCE THE TREASURY BEGAN ISSUING 30YEAR BONDS 16 YEARS AGO MICKEY D LEVY CHIEF FINANCIAL ECONOMIST OF NATIONSBANK SAID LONGTERM INTEREST RATES WILL LIKELY DROP BELOW 65 WITHIN THE NEXT MONTH THANKS TO TWO MONTHS OF POSITIVE INFLATION DATA AND AN ECONOMY THAT IS IMPROVING ONLY SLOWLY STOCK MARKET INVESTORS TOOK THEIR CUE FROM THE DROP IN RATES ANALYSTS SAID THEY WERE FURTHER ENCOURAGED THAT THE FEDERAL RESERVE WON'T TIGHTEN MONETARY POLICY IN LIGHT OF SUCH CLEAR SIGNS OF WEAK INFLATION ALSO THE COMMERCE DEPARTMENT SAID RETAIL SALES ROSE IN JUNE ALBEIT A LITTLE SLOWER THAN EXPECTED BUT THE GOVERNMENT'S RETAIL SALES FIGURES FOR MAY WERE REVISED UPWARD SUGGESTING THAT THE ECONOMY ISN'T AS SLUGGISH AS SOME THOUGHT OPTIMISM ABOUT THE ECONOMY FUELED AN ESPECIALLY SHARP RALLY AMONG TRANSPORTATION STOCKS THE DOW JONES TRANSPORTATION AVERAGE SOARED 3908 OR 26 TO 154362 PARTLY HELPED BY A DROP IN OIL PRICES LEADING THE CHARGE WAS FEDERAL EXPRESS WHICH JUMPED 6 3/8 OR 136 TO 53 1/4 AFTER REPORTING STRONG EARNINGS AIRLINES ALSO CLIMBED WITH UAL PARENT OF UNITED AIRLINES RISING 6 3/4 OR 53 TO 133 THE RALLY IN THE TRANSPORTS IS VERY SIGNIFICANT SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ IT POINTS TO THE CONTINUED ECONOMIC EXPANSION THOUGH AT A SLUGGISH PACE AND MEANS MORE PRODUCTS WILL BE SHIPPED IN TRAINS PLANES AND OTHER VEHICLES MR MCALINDEN PREDICTS THAT THE DOW JONES INDUSTRIALS WILL SAIL TO THE 3700 LEVEL PERHAPS BEFORE LABOR DAY ON THE STRENGTH OF LOW INTEREST RATES RESTRAINED INFLATION AND SIGNS OF FURTHER ECONOMIC GROWTH ECONOMICALLY SENSITIVE STOCKS STRONGLY OUTPACED GROWTH STOCKS YESTERDAY THE MORGAN STANLEY CYCLICAL STOCK INDEX JUMPED 203 TO 27106 WHILE THE CONSUMER STOCK INDEX EDGED UP ONLY 090 TO 19049 THOMAS MCMANUS MARKET ANALYST AT MORGAN STANLEY NOTED THAT AUTOS AND FURNITURE SALES WERE ESPECIALLY STRONG IN YESTERDAY'S RETAIL SALES REPORT FOR JUNE INVESTORS LOOKED AT THE COMPONENTS OF THE RETAIL SALES NUMBERS AND REALIZED THAT CONSUMERS ARE PICKING UP THEIR PURCHASES OF DURABLE GOODS MR MCMANUS SAID AMONG THE MOST BULLISH STRATEGISTS IS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA HE SAID THE DOW INDUSTRIALS ARE HEADED TO 4000 BY THE FIRST HALF OF NEXT YEAR THIS IS THE THIRD PHASE OF THE BULL MARKET AND IT WILL BE THE HOTTEST PHASE MR HAYS SAID HE POINTED TO SIGNS THAT ECONOMIES AROUND THE WORLD ARE EITHER BOTTOMING OUT OR STARTING TO IMPROVE THAT US BORROWING IS PICKING UP AND THAT THE EMPLOYMENT PICTURE IS BRIGHTENING SLIGHTLY WE THINK THE ECONOMY IS GOING TO BE SO MUCH STRONGER THAN ANYONE EXPECTS OVER THE NEXT 12 MONTHS MR HAYS SAID BUT I DON'T EXPECT PEOPLE TO BELIEVE THIS SCENARIO UNTIL DECEMBER BECAUSE WE MAY NOT SEE ENOUGH OF THE HIGHPROFILE GOVERNMENT STATISTICS TO VERIFY IT IN THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX SMASHED ITS PREVIOUS RECORD OF 70885 REACHED LAST FEBRUARY THE RUSSELL 2000 AN INDEX OF SMALL STOCKS TRADED ON THE NEW YORK AND AMERICAN STOCK EXCHANGES AND THE NASDAQ MARKET ROSE 149 TO A RECORD 23784 SURPASSING THE HIGH SET ON TUESDAY RALPH ACAMPORA A TECHNICAL ANALYST WITH PRUDENTIAL SECURITIES SAID THE NASDAQ MARKET COULD CLIMB ANOTHER 5 THERE MIGHT BE SOME DIPS BUT THIS IS A BULLISH HIGH NOT A BEARISH HIGH HE SAID BUT PETER CANELO CHIEF MARKET STRATEGIST OF NATWEST SECURITIES URGED CAUTION WHILE HE ACKNOWLEDGED THE NASDAQ COMPOSITE COULD CLIMB TO 720 HE WARNED I WOULDN'T GO ON VACATION FULLY INVESTED THIS ISN'T THE TIME TO BE BUYING IT LOOKS MORE LIKE THE TIME TO BE SELLING TELECOMMUNICATIONS AND CABLE STOCKS HAVE UNDERPINNED THE RALLY MR CANELO SAID BUT HE SAID THE NASDAQ'S TRADITIONAL MARKET LEADERS IN THE TECHNOLOGY SECTOR AREN'T NEAR THEIR HIGHS WHICH SUGGESTS THAT THE RALLY LACKS DEEP SUPPORT I DON'T REMEMBER A PERIOD WHEN THE OTC MARKET COULD GO A LONG WAY WITHOUT BIG TECHNOLOGY STOCKS HE SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 038 TO 10704 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 285895620 SHARES ON THE BIG BOARD WHERE 1224 ISSUES ROSE AND 792 FELL BOND PRICES SOARED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 3/4 POINT OR NEARLY 750 FOR EACH 1000 FACE AMOUNT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17150 MARKS AND 10707 YEN COMPARED WITH 17185 MARKS AND 10802 YEN TUESDAY 9307150047 930715 ALLIEDSIGNAL AGREES TO BUY SUNDSTRAND AVIATION UNIT MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC AGREED TO BUY SUNDSTRAND CORP'S AVIATION TECHNOLOGY UNIT FOR 195 MILLION EARLIER THIS YEAR SUNDSTRAND HAD AGREED TO SELL SUNDSTRAND DATA CONTROL TO ROCKWELL INTERNATIONAL CORP FOR 225 MILLION BUT THAT DEAL FELL THROUGH IN APRIL SUNDSTRAND A MAKER OF AEROSPACE PARTS AND INDUSTRIAL PRODUCTS SAID AT THE TIME IT WOULD PURSUE ITS OPTIONS INCLUDING THE SALE OF THE UNIT TO OTHER INTERESTED PARTIES SUNDSTRAND DATA CONTROL BASED IN REDMOND WASH HAD 1992 SALES OF 194 MILLION SUNDSTRAND SAID IT WILL BE RELEASING SECONDQUARTER EARNINGS THIS WEEK AND WHILE EARNINGS WILL BE UP FROM THE SECOND QUARTER OF 1992 WE ARE DISAPPOINTED WITH THE OVERALL LEVEL OF OUR EARNINGS MOMENTUM SAID HARRY C STONECIPHER CHIEF EXECUTIVE OFFICER MR STONECIPHER BLAMED SOFTNESS IN THE COMMERCIAL AEROSPACE EQUIPMENT MARKET COUPLED WITH NO SUSTAINED RECOVERY IN INDUSTRIAL ACTIVITY FOR THE RESULTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SUNDSTRAND DROPPED 2 TO 41 ALLIEDSIGNAL AN AEROSPACE AND AUTOMOTIVE PRODUCTS COMPANY CLIMBED 625 CENTS TO 6725 COMPLETION OF THE DEAL IS EXPECTED IN SEPTEMBER 9307150046 930715 BUSINESS BRIEF FROZEN FOOD EXPRESS INDUSTRIES INC RISE IN NET INCOME OF 25 IS EXPECTED FOR 2ND PERIOD FROZEN FOOD EXPRESS INDUSTRIES INC EXPECTS TO REPORT A 25 RISE IN EARNINGS FOR THE SECOND QUARTER THE DALLASBASED TRUCKING COMPANY ATTRIBUTED THE INCREASE TO A LARGER FLEET AND CONTINUED IMPROVEMENTS IN EFFICIENCY NET INCOME FOR THE PERIOD IS EXPECTED TO BE ABOUT 29 MILLION OR 30 CENTS A SHARE ON REVENUE OF ABOUT 56 MILLION FROZEN FOOD SAID IT HAD AN 11 INCREASE IN THE AVERAGE NUMBER OF TRUCKS OPERATING COMPARED WITH THE SAME QUARTER OF 1992 IN THE YEAREARLIER PERIOD THE COMPANY EARNED 23 MILLION OR 25 CENTS A SHARE ON REVENUE OF 488 MILLION EXPECTED RESULTS ARE ACTUALLY ON THE HIGH SIDE OF WHAT WE THOUGHT WE'D DO IN THE SECOND QUARTER WHEN WE DEVELOPED OUR 1993 BUSINESS PLAN SAID STONEY STUBBS JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE NOTED THAT THIS BUSINESS WHICH SPECIALIZES IN FROZEN AND REFRIGERATED TRUCKING SERVICES WAS SEASONAL THE STRONGEST QUARTERS ARE THE SECOND AND THIRD QUARTERS 9307150045 930715 US RECONSIDERS RANCHERS' WATER RIGHTS GRAZING FEES WASHINGTON THE INTERIOR DEPARTMENT IS CONSIDERING BARRING RANCHERS FROM OWNING WATER RIGHTS ON FEDERAL LANDS AS PART OF THE CLINTON ADMINISTRATION'S PLAN TO RAISE FEDERAL GRAZING FEES THE POSSIBLE CHANGE WAS DISCLOSED IN AN INTERNAL INTERIOR DEPARTMENT MEMO RELEASED BY REP CRAIG THOMAS R WYO WHO CALLED IT VERY DISTURBING DEPARTMENT OFFICIALS SAID THE MEMO WAS PRELIMINARY AND DESIGNED TO LAY OUT POLICY OPTIONS FOR INTERIOR SECRETARY BRUCE BABBITT WHO IS EXPECTED TO RELEASE HIS PLAN TO INCREASE GRAZING FEES BY EARLY NEXT MONTH THE MEMO WAS WRITTEN BY JIM BACA DIRECTOR OF THE BUREAU OF LAND MANAGEMENT CURRENTLY RANCHERS CAN GET OWNERSHIP OF WATER RIGHTS IF THEY PAID TO DEVELOP THE RESOURCES THE PLAN UNDER CONSIDERATION WOULD DISALLOW ANY PRIVATE OWNERSHIP OF WATER RIGHTS THE MEMO ALSO SUGGESTS POSSIBLE INCREASES IN THE GRAZING FEE CURRENTLY 186 AN ANIMAL PER MONTH RANGING FROM 312 TO 1026 AGENCY OFFICIALS HOWEVER SAID 1026 HAS ALREADY BEEN RULED OUT AS TOO HIGH IN ADDITION IT SUGGESTS CUTTING THE LENGTH OF GRAZING RIGHTS TO FIVE YEARS FROM 10 POSSIBLY ALLOWING LONGER LEASES FOR RANCHERS WHO FOLLOW GOOD ENVIRONMENTAL PRACTICES FEDERAL GRAZING LANDS ARE MANAGED BOTH BY THE INTERIOR DEPARTMENT'S BUREAU OF LAND MANAGEMENT AND THE AGRICULTURE DEPARTMENT'S FOREST SERVICE THE MEMO SAID THE INTERIOR OFFICIALS WORKED WITH AGRICULTURE OFFICIALS WHILE PREPARING THE MEMO 9307150044 930715 WHAT'S NEWS WORLDWIDE CLINTON UNVEILED A 248 BILLION EMERGENCY AID PROGRAM FOR THE MIDWEST THE PRESIDENT DURING A VISIT TO DES MOINES IOWA SAID HE HAD FORWARDED THE SPENDING REQUEST TO CONGRESS HE SAID THE AMOUNTDOUBLE WHAT HE PROPOSED WHEN HE TOURED THE FLOODED REGION 10 DAYS AGOPROBABLY WOULD NEED TO BE EXPANDED NONE OF THE MONEY IS DUE TO BE OFFSET BY TAX INCREASES OR SPENDING CUTS ELSEWHERE IN THE BUDGET AIDES SAID MEANWHILE TORRENTIAL RAINS WORSENED FLOODING ALONG THE MISSISSIPPI AND MISSOURI RIVERS BUDGET DIRECTOR PANETTA SAID HE WOULDN'T BE SURPRISED IF FEDERAL RELIEF AID TO MIDWESTERN FLOOD VICTIMS EVENTUALLY REACHED 5 BILLION SOMALI MILITIAMEN FIRED ON THE UN HEADQUARTERS COMPLEX IN MOGADISHU HOURS AFTER MILITANTS DISTRIBUTED LEAFLETS CALLING FOR REVENGE ATTACKS ON US SOLDIERS RELIEF PROGRAMS WERE AT A VIRTUAL STANDSTILL MEANWHILE THE UN ASKED ITALY TO REMOVE THE ITALIAN GENERAL IN CHARGE OF THE 2400 ITALIAN TROOPS IN SOMALIA FOR NOT FOLLOWING ORDERS A GOVERNMENT INFORMANT HAD CONTACTS AS EARLY AS 1991 WITH AN ALLEGED TERRORIST GROUP ACCUSED OF PLOTTING TO BOMB BUILDINGS IN NEW YORK PROSECUTORS SAID THAT INFORMATION IN AN INDICTMENT RAISED QUESTIONS ABOUT WHETHER OFFICIALS COULD HAVE KNOWN ABOUT PLANS FOR THE WORLD TRADE CENTER BLAST AHEAD OF TIME A LARGE PERCENTAGE OF WOMEN ARE FAILING TO RECEIVE BASIC PREVENTIVE HEALTH SERVICES IN THE US A SURVEY SHOWED IN PARTICULAR WOMEN AREN'T RECEIVING TESTS TO SCREEN FOR CERVICAL CANCER BREAST CANCER AND OTHER HEALTH PROBLEMS THAT CAN BE SUCCESSFULLY TREATED WITH EARLY DETECTION THE SURVEY FOUND RUNNING WATER WAS RESTORED TO ONETHIRD OF SARAJEVO BUT SERB FORCES BESIEGING THE BOSNIAN CAPITAL FAILED TO SWITCH ON A NATURALGAS LINE AS PROMISED UN OFFICIALS SAID MEANWHILE THE US AND ITS NATO ALLIES TENTATIVELY APPROVED A PLAN TO PROVIDE AIR COVER FOR ABOUT 7500 UN PEACEKEEPERS IN BOSNIA BEGINNING NEXT WEEK MEXICO ANNOUNCED THAT IT WILL PERMIT THREE SHIPS CARRYING 659 ILLEGAL CHINESE IMMIGRANTS TO ENTER ITS WATERS BUT WILL IMMEDIATELY REPATRIATE THE UNDOCUMENTED WORKERS THE ANNOUNCEMENT FOLLOWED A STANDOFF BETWEEN MEXICO AND THE US OVER THE SHIPS INTERCEPTED OFF MEXICO BY THE US COAST GUARD EARLY LAST WEEK PEOPLE WITH SERIOUS DEPRESSION FARE BETTER WHEN TREATED BY PSYCHIATRISTS IN A FEEFORSERVICE HEALTH PLAN THAN UNDER PREPAID MANAGED CARE A STUDY SUGGESTS HOWEVER FOR MILDER FORMS OF DEPRESSION THE REPORT PROVIDES SOME EVIDENCE THAT PATIENTS DO EQUALLY WELL UNDER BOTH PLANS THE DEATH TOLL REACHED 103 FROM JAPAN'S STRONGEST EARTHQUAKE IN 25 YEARS AND 91 PEOPLE REMAINED MISSING THE TINY NORTHERN ISLAND OF OKUSHIRI WAS HARDEST HIT BY MONDAY'S QUAKE WITH A TIDAL WAVE AND FIRES DEVASTATING THE MAIN TOWN PRIME MINISTER MIYAZAWA PROMISED GOVERNMENT AID SHELDON HACKNEY RECEIVED A SENATE PANEL'S ENDORSEMENT TO HEAD THE NATIONAL ENDOWMENT FOR THE HUMANITIES THE PRESIDENT OF THE UNIVERSITY OF PENNSYLVANIA HAD BEEN ATTACKED BY SOME CONSERVATIVES BECAUSE OF CAMPUS INCIDENTS IN WHICH DETRACTORS ACCUSED HIM OF WAFFLING ON ISSUES OF FREE SPEECH AND FREE PRESS HOUSING LEGISLATION IS EXPECTED TO BE INTRODUCED TO CHANGE RENT POLICY FOR PUBLIC HOUSING SO THAT TENANTS WITH A WIDER INCOME RANGE CAN LIVE THERE IN ADDITION THE ADMINISTRATION IS LIKELY TO PROPOSE WAYS TO REVITALIZE AN FHA PROGRAM THAT INSURES MORTGAGES POSSIBLY BY RAISING THE MORTGAGE LIMITS RUSSIAN LEGISLATORS VOTED TO BAN FOREIGN MISSIONARIES FROM PROSELYTIZING ON RUSSIAN SOIL A MOVE THAT ONE CRITICAL LAWMAKER SAID WAS AIMED AT US EVANGELIST BILLY GRAHAM THE MEASURE WHICH REQUIRES THE APPROVAL OF PRESIDENT YELTSIN BEFORE BECOMING LAW PROHIBITS MISSIONARY WORK INCLUDING PUBLISHING BUSINESS TRANSACTIONS AND ADVERTISING A CAMBODIAN LEADER SAID US PRESSURE WON'T PREVENT THE GOVERNMENT FROM ACCEPTING A PEACE OFFER MADE BY KHMER ROUGE REBELS HUN SEN A COCHAIRMAN OF THE INTERIM GOVERNMENT SAID FOREIGN NATIONS SHOULDN'T BE ALLOWED TO USE ECONOMIC INFLUENCE THE US HAS VOWED TO WITHHOLD AID IF THE REBELS GET A GOVERNMENT ROLE 9307150043 930715 WHAT'S NEWS BUSINESS AND FINANCE BONDS SURGED SHARPLY LIFTING STOCKS ON A SECOND DAY OF REASSURING INFLATION DATA THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL TO 656 AS ITS PRICE GAINED NEARLY 3/4 POINT THE NASDAQ COMPOSITE JUMPED TO A RECORD WHILE THE DOW INDUSTRIALS GAINED 2711 TO 354255 CONSUMER PRICES WERE UNCHANGED LAST MONTH AFTER AN INCREASE OF 01 THE MONTH BEFORE THE BEST BACKTOBACK REPORT ON PRICES IN TWO YEARS DEMOCRATS SEEM HEADED TOWARD A COMPROMISE DEFICITREDUCTION PLAN WITH A FUEL TAX INCREASE NOT MUCH HIGHER THAN THE SENATE'S PROPOSED 43 CENTS AND AS A CONSEQUENCE TOTAL SAVINGS THAT ARE SHORT OF CLINTON'S GOAL OF 500 BILLION OVER FIVE YEARS DELL COMPUTER EXPECTS A LOSS FOR ITS SECOND QUARTER ITS FIRST QUARTERLY DEFICIT EVER THE NEWS SENT ITS STOCK DOWN 3375 OR 18 TO 15875 THE LOSS STEMS FROM PROBLEMS AT ITS NOTEBOOK COMPUTER BUSINESS AND AN INTERNAL SYSTEM THAT OVERESTIMATED DEMAND NORTHWEST AIRLINES' CHIEF EXECUTIVE SAID HE FELT AMR CHAIRMAN ROBERT CRANDALL IMPROPERLY TRIED TO PRESSURE HIM TO RAISE AIR FARES THE NORTHWEST CHIEF TESTIFIED AT AN ANTITRUST CASE BROUGHT BY NORTHWEST AND CONTINENTAL AGAINST AMR'S AMERICAN AIRLINES THE FTC DROPPED ITS TWOYEAR ANTITRUST PROBE OF INTEL'S BUSINESS PRACTICES AND MAY SOON DECIDE THE FATE OF MICROSOFT ANOTHER DOMINANT COMPANY IN THE PERSONALCOMPUTER INDUSTRY PRUDENTIALBACHE SECURITIES URGED ITS BROKERS IN THE '80S TO SELL A WIDE RANGE OF HIGHRISK LIMITED PARTNERSHIPS TO INVESTORS SEEKING SAFETY ACCORDING TO INTERNAL SALES DOCUMENTS SALES OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS EASED IN EARLY JULY AS THE AUTO INDUSTRY'S RECOVERY SLOWED FOLLOWING A LATE JUNE SURGE US CRUDEOIL PRODUCTION FELL 55 TO A 35YEAR LOW DURING THE FIRST HALF AND FEW IN THE PETROLEUM INDUSTRY SEE MUCH CHANCE OF A TURNAROUND SOON IMPORTS OF CRUDE OIL AND PETROLEUM PRODUCTS JUMPED 92 IN THE FIRST HALF TO THE HIGHEST LEVEL SINCE 1990 PETROLEUM PRICES FELL MORE THAN 60 CENTS A BARREL TO A THREEYEAR LOW ON HINTS OF A BREAKTHROUGH IN UNIRAQ TALKS OVER A ONETIME SALE OF IRAQI OIL CREDIT LYONNAIS IS CONSIDERING SEVERAL PROPOSALS INVOLVING A RESTRUCTURING OF METROGOLDWYNMAYER THE AILING MOVIE STUDIO THAT THE FRENCH STATEOWNED BANK IS TRYING TO SELL PEOPLE FAMILIAR WITH THE PROPOSALS SAID CAMPBELL SOUP'S 1 BILLION PENSION FUND PLANS TO TAKE ON AN ACTIVISTSHAREHOLDER ROLE BECOMING ONE OF THE FIRST CORPORATE RETIREMENT PLANS TO DO SO REGIONAL BELL PHONE COMPANIES ARE LAUNCHING A BROAD OFFENSIVE AGAINST BARRIERS THAT EXCLUDE THEM FROM THE LUCRATIVE LONGDISTANCE MARKET JAPAN SAID THE US IS OFF BASE IN ITS STATEMENTS ABOUT DECREASES IN JAPAN'S TRADE SURPLUS UNDER THE TWO NATIONS' NEW FRAMEWORK TRADE AGREEMENT TOKYO STOCKS ENDED NARROWLY MIXED WEDNESDAY IN CALM TRADING THE NIKKEI INDEX FELL 4131 TO 2013911 LONDON SHARES FELL BUT WERE SAVED FROM SHARP DROPS BY A LATE RECOVERY BONDS LEHMAN BROTHERS TREASURY INDEX 535594 UP 3035 COMMODITIES OIL 1749 A BARREL OFF 64 CENTS DOW JONES FUTURES INDEX 12569 OFF 059 SPOT INDEX 12308 OFF 021 DOLLAR 10707 YEN OFF 095 17150 MARKS OFF 00035 9307150042 930715 RTC SELLS OFF SIX RESORTS FOR TOTAL OF 4042 MILLION DALLAS THE RESOLUTION TRUST CORP SOLD SIX GOLF AND RESORT PROPERTIES INCLUDING PGA WEST IN LA QUINTA CALIF KIAWAH ISLAND RESORT IN SOUTH CAROLINA AND THE PALM BEACH POLO AND COUNTRY CLUB FOR A TOTAL OF 4042 MILLION THE FLORIDA POLO CLUB WAS PURCHASED BY TRISTATE GROUP INC WHEELING WVA FOR 271 MILLION THE DEVELOPMENT FIRM REGISTERED AT YESTERDAY'S AUCTION AS TRISTATE ASPHALT CORP A BLUECOLLARSOUNDING MONIKER THAT RAISED EYEBROWS THEY WOULD NEVER TURN IT INTO A PARKING LOT INSISTED A POLO CLUB OFFICIAL WHO WOULDN'T GIVE HER NAME THE AUCTION BROUGHT MORE THAN HALF OF THE PROPERTIES' BOOK VALUE WHICH THE RTC LISTED AS 708 MILLION THE RESORTS WERE ASSETS OF BANKRUPT LANDMARK LAND COS AND WERE ACQUIRED WHEN THE RTC WAS APPOINTED CONSERVATOR FOR THE FAILED OAK TREE SAVINGS BANK OF NEW ORLEANS PGA WEST AND THE LA QUINTA HOTEL GOLF & TENNIS RESORT WERE PURCHASED FOR A TOTAL OF 2764 MILLION BY KSL RECREATION GROUP LTD VAIL COLO WHICH IS BACKED BY KOHLBERG KRAVIS ROBERTS & CO NEW YORK CLUB CORP OF AMERICA DALLAS PURCHASED MISSION HILLS RANCHO MIRAGE CALIF FOR 356 MILLION MORGAN STANLEY REAL ESTATE FUND RESORTS LIMITED PARTNERSHIP II NEW YORK BOUGHT THE CARMEL VALLEY RANCH SANTA LUCIA MOUNTAINS CALIF FOR 20 MILLION THE KIAWAH RESORT WAS BOUGHT FOR 451 MILLION BY VIRGINIA INVESTMENT TRUSTS A UNIT OF AMF COS RICHMOND VA 9307150041 930715 INTERNATIONAL SOUTH KOREA'S KIM FIRES GENERALS TIED TO SCANDAL SEOUL SOUTH KOREA REUTER PRESIDENT KIM YOUNG SAM FIRED TWO TOP GENERALS ALLEGEDLY INVOLVED IN THE WEB OF CORRUPTION SURROUNDING RECENT ARMS PURCHASES A DEFENSE MINISTRY SPOKESMAN SAID GEN CHO NAM PUNG COMMANDER OF ONE OF THE COUNTRY'S THREE FIELD ARMIES AND LT GEN PARK WOONG THE ASSISTANT DEFENSE MINISTER WERE DISMISSED A MINISTRY SOURCE SAID A SHUFFLE AFFECTING LOWERLEVEL MILITARY OFFICERS WAS EXPECTED TO FOLLOW MESSRS CHO AND PARK WERE AMONG 34 DEFENSE OFFICIALS AND ACTIVEDUTY MILITARY OFFICERS WHO WERE ACCUSED LAST WEEK BY THE BOARD OF AUDIT AND INSPECTION OF BEING INVOLVED IN SHADY DEALS OR TAKING BRIBES UNDER PRESIDENT KIM'S ORDERS THE BOARD INVESTIGATED RECENT MILITARY HARDWARE PURCHASES THAT OPPOSITION POLITICIANS CLAIM WERE SECURED BY CORRUPT MENS ONE OF THE DEALS THAT HAS RAISED EYEBROWS WAS THE 1991 DECISION TO BUY F16 FALCONS BUILT BY GENERAL DYNAMICS CORP FOR 52 BILLION WHICH REVERSED AN EARLIER PLAN TO BUY F/A18 HORNETS PRODUCED BY MCDONNELL DOUGLAS CORP MILITARY PROCUREMENT OFFICIALS CITED COSTSAVING FOR THE REVERSAL 9307150040 930715 MARKETING BRIEF NOTED PUBLISHING MACMILLAN INC'S FREE PRESS UNIT SAID MARTIN KESSLER 62 WILL JOIN IT IN LATE AUGUST TO ESTABLISH HIS OWN IMPRINT MARTIN KESSLER BOOKS THERE FOR THE PAST 14 YEARS MR KESSLER HAS BEEN PRESIDENT AND EDITORIAL DIRECTOR AT BASICBOOKS A DIVISION OF HARPERCOLLINS PUBLISHERS HARPERCOLLINS A UNIT OF NEWS CORP SAID KERMIT HUMMEL 39 WILL SUCCEED MR KESSLER AS PRESIDENT AND PUBLISHER MR HUMMEL WAS BASICBOOKS' SENIOR VICE PRESIDENT ASSOCIATE PUBLISHER AND DIRECTOR OF MARKETING 9307150039 930715 BUSINESS BRIEF LASERSCOPE INC LASER DEVICE HELPS REVERSE LOSS BOOST QUARTERLY NET BUOYED BY SALES OF ITS PREMIER SURGICAL DEVICE LASERSCOPE INC REPORTED SECONDQUARTER EARNINGS OF 200000 OR THREE CENTS A SHARE REVERSING A LOSS ANALYSTS HAD FORECAST EARNINGS OF ONE CENT A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC THE SAN JOSE CALIF COMPANY POSTED A LOSS OF 31 MILLION OR 47 CENTS A SHARE A YEAR EARLIER BLAMING HIGH EXPENSES AND OVERCAPACITY ROBERT MCCORMICK PRESIDENT AND CHIEF EXECUTIVE SAID THE GROWTH WAS DRIVEN BY SALES OF THE COMPANY'S FIBEROPTIC LASER SURGERY DEVICE AND ACCESSORIES THE PRODUCT AN ANGLED DELIVERY DEVICE IS USED TO TREAT PROSTATE DISEASE UROLOGISTS APPEAR TO BE MORE AND MORE INTERESTED IN LASERS MR MCCORMICK SAID FOR THE PERIOD ENDED JUNE 30 REVENUE GREW 12 TO 89 MILLION OVERALL GROSS MARGINS WERE 60 COMPARED WITH 41 A YEAR EARLIER IT WAS THE THIRD CONSECUTIVE QUARTER OF PROFITABILITY AFTER A SERIES OF NET LOSSES 9307150038 930715 INTERNATIONAL EC JAPAN FAIL TO SET CUTS IN JAPANESE CAR EXPORTS BRUSSELS THE EUROPEAN COMMUNITY AND JAPAN FAILED IN THREE DAYS OF TALKS TO AGREE ON FURTHER CUTS IN JAPANESE CAR EXPORTS TO THE EC BUT EC COMMISSION OFFICIALS SAID THE TWO SIDES MADE PROGRESS TOWARD AN ACCORD SENIOR EC COMMISSION OFFICIALS SAID JAPAN IS NOW WILLING TO MAKE DEEPER REDUCTIONS IN ITS EXPORTS TO THE EC THIS YEAR THAN WERE AGREED BY THE TWO SIDES IN APRIL BUT THE EC AND JAPAN REMAIN AT ODDS OVER HOW LARGE THE CUTS SHOULD BE BECAUSE OF DIFFERING VIEWS ON THE OUTLOOK FOR THE EUROPEAN MARKET THE NEXT MEETING IS LIKELY TO BE IN TOKYO NEXT MONTH AT THE LATEST TALKS THE COMMISSION TOLD A DELEGATION FROM JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY THAT EC CAR REGISTRATIONS WILL FALL BY 15 TO 16 THIS YEAR EARLIER THE COMMISSION HAD PREDICTED A 65 MARKET DECLINE AND BASED ON THAT FORECAST JAPAN AGREED TO CUT ITS EXPORTS BY 94 FROM LAST YEAR'S LEVELS BUT A JAPANESE SPOKESMAN SAID TOKYO THINKS THE COMMISSION'S NEW FORECAST IS TOO PESSIMISTIC COMMISSION SOURCES SAID THE JAPANESE EXPECT A 10 TO 11 DECLINE 9307150037 930715 INTERNATIONAL KIRIN BREWERY OFFICIALS ARRESTED FOR ALLEGED PAYOFF TOKYO REUTER FOUR OFFICIALS OF JAPAN'S LARGEST BEER MAKER KIRIN BREWERY CO WERE ARRESTED ON SUSPICION OF PAYING OFF GANGSTERS TO PREVENT THEM FROM UPSETTING SHAREHOLDER MEETINGS A POLICE SPOKESMAN SAID EIGHT SOKAIYA RACKETEERS WERE ALSO ARRESTED FOR THE ALLEGED PAYOFF TOTALING 275000 POLICE SAID THE ARRESTED OFFICIALS HAVE ADMITTED THAT THEY PAID SOKAIYA TO ENSURE THE ANNUAL MEETING WAS HELD PEACEFULLY KIRIN'S ANNUAL SHAREHOLDER MEETING MARCH 30 ENDED IN 24 MINUTES WITHOUT ANY QUESTIONS FROM SHAREHOLDERS ITS 1983 MEETING LASTED FIVE HOURS KIRIN VICE PRESIDENT YASUSHI YAMAMOTO SAID THE COMPANY PLAYED NO PART IN THE DEAL AND THE MONEY PAID WASN'T FROM ITS COFFERS WE DID NOT KNOW ANYTHING UNTIL THOSE PEOPLE WERE ARRESTED THIS AFTERNOON MR YAMAMOTO SAID BUT ASKED IF THEY DID IT FOR THE COMPANY HE SAID I BELIEVE SO SOKAIYA OFTEN LINKED TO YAKUZA GANGSTERS TRY TO EXTORT MONEY FROM COMPANIES BY THREATENING TO COMPLAIN ABOUT DUBIOUS BUSINESS PRACTICES OR ASK EMBARRASSING QUESTIONS ABOUT OFFICIALS' PRIVATE LIVES AT SHAREHOLDER MEETINGS COMPANIES ALSO SOMETIMES HIRE RACKETEERS TO MONOPOLIZE THE FLOOR AT SHAREHOLDERS' MEETINGS TO PREVENT LEGITIMATE INVESTORS FROM ASKING QUESTIONS BOTH PRACTICES ARE BANNED BY JAPANESE LAW 9307150036 930715 MARKETING & MEDIA PEPSICO'S KFC UNIT PLANS TO ADD ROASTED CHICKEN LOUISVILLE KY KFC CORP THE PEPSICO INC RESTAURANT CHAIN THAT MADE FRIED CHICKEN A FASTFOOD STAPLE IS ADDING ROASTED CHICKEN TO ITS MENU ROASTED CHICKEN WITH LESS FAT AND CHOLESTEROL THAN FRIED CHICKEN IS ONE OF THE FASTESTGROWING AREAS IN THE RESTAURANT BUSINESS INDEED KFC ANTICIPATES ITS NEW PRODUCT WILL GENERATE 700 MILLION IN SALES DURING THE FIRST YEAR ABOUT 100 MILLION WILL BE SPENT TO LAUNCH THE PRODUCT INCLUDING A 55 MILLION ADVERTISING CAMPAIGN THAT BEGINS MONDAY KFC BETTER KNOWN AS KENTUCKY FRIED CHICKEN HAS TRIED FOR YEARS TO GROW BEYOND ITS FRIED MONIKER WITHOUT MUCH SUCCESS KYLE CRAIG KFC'S PRESIDENT SAID HE HOPES THE CHAIN'S NEW OFFERINGS WILL ATTRACT THOSE CONSUMERS WHO TURNED AWAY FROM KFC BECAUSE OF OUR FRIEDCHICKEN HERITAGE THE OVENROASTED BIRDS HAVE BEEN TEST MARKETED SINCE LAST FALL IN SEVERAL CITIES INCLUDING AUSTIN TEXAS MIAMI SYRACUSE NY AND IN THE BALTIMORE/WASHINGTON DC AREA THE ROASTED CHICKEN WILL BE PART OF AN EXPANDED KFC MENU THAT WILL INCLUDE FRIED CHICKEN BARBECUE CHICKEN SANDWICHES AND CHICKEN TAQUITOS 9307150035 930715 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FUNDS RELEASED BY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT FOR PROJECTS IN CENTRAL AND EASTERN EUROPE IN THE FIRST HALF ROSE 15 TO 1159 MILLION FROM LAST YEAR'S SECOND HALF BUT APPROVED PROJECTS IN THE FORMER EAST BLOC FELL TO 31 FROM 41 AND INTENDED INVESTMENT DROPPED 13 TO 8656 MILLION JACQUES ATTALI RESIGNED RECENTLY AS PRESIDENT OF THE BANK FOUNDED IN APRIL 1991 AFTER HE SPENT MORE ON THE EBRD'S LONDON HEADQUARTERS THAN ON DEVELOPMENT PROJECTS IN ITS FIRST YEAR OF OPERATION DETAILS OF EBRD SPENDING ARE TO BE RELEASED TOMORROW IN AN AUDIT REPORT THE MULTINATIONAL BANK IS REQUIRED TO PUT 60 OF ITS LOANS AND EQUITY INVESTMENTS IN PRIVATESECTOR PROJECTS FINANCE SPECIALISTS NOTED THE EBRD FOUND IT DIFFICULT TO INVEST IN COUNTRIES WITH NASCENT PRIVATE SECTORS ESPECIALLY AS EUROPE'S RECESSION MAKES WESTERN INSTITUTIONS LESS ABLE TO COFINANCE EBRD PROJECTS THE RUSSIAN PARLIAMENT RAISED THE MINIMUM MONTHLY WAGE 81 TO 7740 RUBLES 750 TO MATCH THE INCREASED SUBSISTENCE LEVEL GOVERNMENT OFFICIALS OPPOSED THE MOVE ARGUING THAT THE BUDGET DIDN'T ALLOW FOR THE WAGE INCREASES FOR STATE WORKERS THAT WILL TOTAL 3 BILLION IN THE SECOND HALF THEY SAID RAISING PAY AMID RUSSIA'S CURRENT CHAOTIC ECONOMIC CONDITIONS WOULD FUEL INFLATION PRICES OF BASIC GOODS AND SERVICES HAVE DOUBLED IN THE PAST THREE MONTHS BUT THE OVERALL MONTHLY INFLATION RATE IN JUNE FELL TO A PRELIMINARY 174 FROM 19 IN MAY AND 23 IN APRIL CHINESE STATERUN NEWSPAPERS CARRIED AN UNUSUAL DEBATE ABOUT THE PUBLICHEALTH COSTS OF SMOKING STILL A CAMPAIGN AGAINST CIGARETTES IS CONSIDERED UNLIKELY AS TOBACCO GLOWS BRIGHTLY IN THE HOT ECONOMY ESTIMATED COSTS LINKED TO SMOKINGRELATED ILLNESSES TOTALED 49 BILLION IN 1989 EXCEEDING STATE TOBACCO REVENUE OF 42 BILLION A SUM THAT GREW TO 526 BILLION LAST YEAR ABOUT 300 MILLION OR 27 OF CHINA'S 112 BILLION PEOPLE SMOKE THE PAPERS QUESTIONED CHINA'S POLICY OF ALLOWING CIGARETTE IMPORTS AND FOREIGN TOBACCO FIRMS' SPONSORSHIPS OF YOUTH AND SPORTS EVENTS WITH LITTLE CONCERN FOR HEALTH EFFECTS THE EUROPEAN COMMUNITY'S HIGHEST COURT CONDEMNED BRITAIN FOR FAILING TO CLEAN UP WATERS OFF BLACKPOOL A RESORT TOWN IN NORTHWEST ENGLAND THAT ATTRACTS 15 MILLION VISITORS A YEAR THE EUROPEAN COURT OF JUSTICE RULED THAT THE WATERS DIDN'T MEET EC STANDARDS ON SEWAGE POLLUTION AND IT SAID BRITAIN FAILED TO COMPLY WITH EC LAWS ON CLEANING UP BEACHES AT BLACKPOOL AND NEIGHBORING SOUTHPORT BUT IT DIDN'T IMPOSE SANCTIONS BRITAIN SAID A 3 BILLION CLEANUP WILL BRING THE COUNTRY'S COASTLINE UP TO EC STANDARDS BY 1995 THE EUROPEAN COMMUNITY COMMISSION MOVED TO PROTECT THE 12NATION BLOC FROM PIRATED AND COUNTERFEIT GOODS TOUGHER RULES WERE PROPOSED BECAUSE A 1986 EC LAW HAS BEEN APPLIED EFFECTIVELY ONLY BY BRITAIN FRANCE AND GERMANY THE EC ESTIMATED THAT COUNTERFEITING COST EUROPE 100000 JOBS LAST YEAR MOST BOGUS GOODS FOUND IN THE EC ARE FROM EASTERN EUROPE AND ASIA THE NEW PLAN WOULD EXTEND EC LAW TO COVER PRODUCTS MADE WITHOUT CONSENT OF COPYRIGHT OWNERS AND COUNTERFEIT GOODS AND BROADEN COVERAGE TO INCLUDE ILLEGALLY USED TRADEMARKS PACKAGING WITH UNAUTHORIZED LOGOS AND TOOLS FOR MAKING COUNTERFEIT MARKS OR PRODUCTS EC COUNTRIES WOULD SET THEIR OWN PENALTIES TO DETER VIOLATIONS A JAPANESE EDUCATION MINISTRY ADVISORY PANEL RECOMMENDED GRANTING STUDENT VISAS TO FOREIGNERS ONLY IF THEY HAVE BASIC JAPANESE LANGUAGE SKILLS A MOVE TO DETER USE OF THE VISAS JUST TO GET JOBS TO MEET GROWING DEMAND FOR SKILLED LABOR IN ITS BOOMING SOUTHERN REGION CHINA GIVING PEOPLE SOME FREEDOM IN CHOOSING JOBS THE CHINA DAILY SAID THE NEW POLICY DOESN'T SIGNAL A FULLFLEDGED FREE LABOR MARKET BUT IT CRACKS THE GOVERNMENT'S LONGSTANDING PRACTICE OF ASSIGNING JOBS 9307150034 930715 LOSS FOR STORAGE TECHNOLOGY INC TOTALS 13 MILLION BY ROBERT TOMSHO AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL LOUISVILLE COLO STORAGE TECHNOLOGY INC REPORTED A SECONDQUARTER LOSS OF 13 MILLION OR FOUR CENTS A SHARE FALLING FAR SHORT OF ANALYSTS' EXPECTATIONS A YEAR EARLIER THE COMPANY HAD NET INCOME OF 66 MILLION OR 16 CENTS A SHARE PERSHARE RESULTS FOR THE QUARTER ENDED JUNE 25 REFLECTED A PREFERRED DIVIDEND REQUIREMENT OF 3 MILLION REVENUE FELL 81 TO 3551 MILLION FROM 3864 MILLION THE COMPANY'S STOCK WAS TRADING AT 41125 A SHARE UP FROM 4050 BEFORE TRADING WAS HALTED LATE YESTERDAY ON THE NEW YORK STOCK EXCHANGE FOR DISSEMINATION OF THE NEWS MANY ANALYSTS EXPECTED STORAGE TO EARN ABOUT 10 CENTS A SHARE ON ABOUT 410 MILLION IN REVENUE CASEY STERN A TECHNOLOGY ANALYST AT STARR SECURITIES IN NEW YORK SAID THE COMPANY'S BIGGEST PROBLEM DURING THE QUARTER WAS A SLOWDOWN OVERSEAS THE INTERNATIONAL BUSINESS HURT THEM TERRIBLY HE SAID THAT SEEMS TO BE THE BIG PROBLEM A COMPANY SPOKESMAN SAID EUROPEAN SALES HIT ESPECIALLY HARD BY THE GERMAN RECESSION WERE BELOW THE COMPANY'S EXPECTATIONS BUT DECLINED TO PROVIDE DETAILS THERE IS NO DOUBT IT IS A DIFFICULT CLIMATE FOR US HE SAID NOTING THAT EUROPEAN SALES ACCOUNT FOR ABOUT 30 OF ANNUAL REVENUE THE MAKER OF STORAGE AND INFORMATION SYSTEMS FOR ADVANCED COMPUTERS SAID IT EXPECTS IMPROVED RESULTS DURING THE FOURTH QUARTER BECAUSE OF CERTAIN NEW PRODUCT SALES BUT STORAGE ALSO SAID IT EXPECTS INTENSE COMPETITION IN THE MIDSIZE COMPUTER PRODUCT MARKET TO CONTINUE AND CERTAIN OF ITS OPERATIONS WILL HAVE TO BE REFOCUSED AS A RESULT THOUGH MR STERN SAID HE IS BULLISH ABOUT THE COMPANY'S LONGTERM PROSPECTS HE EXPECTS STORAGE TO SUFFER AGAIN IN THE THIRD QUARTER HE PROJECTS A LOSS OF ABOUT 12 CENTS A SHARE BECAUSE OF CONTINUING PROBLEMS IN EUROPE AND EXPENSES RELATED TO THE PLANNED ACQUISITION OF AMPERIF CORP IN MAY THE COMPANY SAID IT PLANNED TO ACQUIRE AMPERIF A CLOSELY HELD CHATSWORTH CALIF STORAGE SYSTEM MAKER FOR STOCK VALUED AT 836 MILLION THE COMPANY SAID YESTERDAY IT EXPECTS TO COMPLETE THE ACQUISITION DURING THE THIRD QUARTER AND TO INCUR CERTAIN RELATED CLOSING AND CONSOLIDATION COSTS IT DIDN'T SPECIFY AN AMOUNT THE COMPANY SAID IT STILL EXPECTS TO BEGIN PRODUCTION OF ITS LONGDELAYED ICEBERG STORAGE SYSTEM BEFORE YEAR END BUT IT DOESN'T EXPECT ANY REVENUE FROM ICEBERG UNTIL 1994 9307150033 930715 PRUDENTIAL ORDERED TO RELEASE DATA ON FORMER OFFICER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL JUDGE ORDERED PRUDENTIAL SECURITIES INC TO TURN OVER A CONFIDENTIAL REPORT PREPARED BY A LAW FIRM COUNSELING THE BROKERAGE HOUSE ON THE DEALINGS OF ITS FORMER PARTNERSHIP CHIEF THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT HAD LONG BEEN SUCCESSFUL IN SQUELCHING THE RELEASE OF THE REPORT ON THE ARGUMENT THAT THE DATA ARE PRIVILEGED AND CONFIDENTIAL BUT A NEW ORLEANS FEDERAL JUDGE OVERSEEING A BIG CLASSACTION CASE AGAINST PRUDENTIAL SECURITIES ISSUED AN ORDER FRIDAY FORCING PRUDENTIAL SECURITIES TO RELEASE THE REPORT TO PLAINTIFFS' ATTORNEYS THE REPORT PREPARED BY LOCKE PURNELL RAIN HARRELL IN FEBRUARY 1988 SAID THAT JAMES DARR PRUDENTIAL'S FORMER PARTNERSHIP CHIEF ENGAGED IN PRIVATE LAND DEALS WITH TWO OIL MEN GEORGE S WATSON AND A STARKE TAYLOR III WHILE HE SIMULTANEOUSLY HEADED PRUDENTIAL'S PARTNERSHIP DEPARTMENT THAT MARKETED WATSON & TAYLOR PARTNERSHIPS TO INVESTORS MANAGED BY THE SAME TWO OIL MEN IT SHOWS THAT DURING THE TIME DARR WAS AMASSING THESE DEALS FOR PRU AND SELLING THEM TO INVESTORS HE WAS DOING SO WITHOUT REVEALING THAT HE WAS INVESTING IN SWEETHEART DEALS WITH THE SAME SPONSORS ASSERTED CLINTON KRISLOV OF KRISLOV & ASSOCIATES A CHICAGO FIRM REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL THE REPORT MR KRISLOV SAID MAKES IT LOOK LIKE THE DEALS DARR DID WERE BASED ON WHO HE COULD DO DEALS WITH HIMSELF MR DARR BRUSHED ASIDE ALLEGATIONS OF WRONGDOING SAYING IN A STATEMENT THAT HE WELCOMED THE REPORT'S RELEASE ANY SUGGESTION THAT MY PRIVATE INVESTMENTS WITH WATSON & TAYLOR INFLUENCED DECISIONS AT PRUBACHE NOW PRUDENTIAL SECURITIES IS WHOLLY UNFOUNDED MR DARR SAID THE PARTNERSHIPS IN WHICH I INVESTED OWNED LAND THAT WAS FAR REMOVED FROM THE PROPERTIES THAT WATSON & TAYLOR SOLD TO THE PUBLIC THROUGH PRUBACHE HE SAID THUS THEY WERE NOT IN CONFLICT WITH THE PUBLICLY MARKETED PARTNERSHIPS MR DARR WHO SAID HE DISCLOSED THESE INVESTMENTS TO HIS SUPERIORS AT PRUDENTIALBACHE SAID HIS NET PRETAX RETURN ON THESE LAND TRANSACTIONS WAS LESS THAN 2000 OVER 10 YEARS ON INVESTMENTS TOTALING 233000 LOREN SCHECHTER PRUDENTIAL SECURITIES'S GENERAL COUNSEL SAID PRUDENTIAL WAS HAPPY TO TURN OVER THE REPORT WHEN FEDERAL JUDGE MARCEL LIVAUDAIS JR ORDERED IT THERE WAS NOTHING TO HIDE ABOUT IT MR SCHECHTER SAID PRUDENTIAL DISCONTINUED MARKETING WATSON & TAYLOR PARTNERSHIPS AFTER THE LOCKE PURNELL REPORT MR SCHECHTER SAID MR DARR LEFT PRUDENTIAL LATER IN 1988 9307150032 930715 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO CLEANUP COMPANIES GEAR UP FOR A TORRENT OF WORK WHEN MIDWEST FLOODS EBB THREE WEEKS AGO MANUFACTURER LLOYD'S INC IN RAPID CITY SD INCREASED ORDERS FOR PARTS TO MAKE SUCH EQUIPMENT AS DEHUMIDIFIERS IT NOW CARRIES 50 MORE PRODUCT INVENTORY THAN NORMAL AND RESTORX INC'S TWO PLANTS IN PENNSYLVANIA WHICH MAKE DISINFECTANTS SWITCHED TO THREE SHIFTS FRIDAY IT'LL BE A MUCH DIRTIER BUSINESS THAN AFTER HURRICANE ANDREW SAYS CLIFF SLOTNIK PRESIDENT WOODARD RUG & DRAPERY CLEANERS IN MISSOURI PULLS STAFF FROM OTHER SECTIONS FOR QUICK TRAINING IN WATER DAMAGE THE MISSISSIPPI RIVER WILL BRING MORE BUSINESS FOR RESTORERS THAN THE HURRICANE SAYS THE ASSOCIATION OF SPECIALISTS IN CLEANING AND RESTORATION UNLIKE ANDREW'S AFTERMATH MANY STRUCTURES ARE EXPECTED TO REMAIN STANDING INTERIORS AND CONTENTS WILL BE DAMAGED BUT SALVAGEABLE IN ADDITION MANY FIRMS HAVE A CHANCE TO PREPARE THIS TIME LLOYD'S FOR INSTANCE RAN SHORT OF PARTS FOLLOWING ANDREW THREE MISSOURI BANKS RECENTLY ASKED TO BE PUT ON WOODARD'S CLIENT LIST AND THE FLOOD HADN'T REACHED THEM YET SPORTS FANS DRAW SOME NOVEL ASSISTANCE IN FINANCING THEIR TICKETS SEVERAL BANKS OFFER LOANS TO HELP CAROLINA FOOTBALL FANS BUY LICENSES TO PURCHASE PERMANENT SEATING IN A PROPOSED STADIUM IN CHARLOTTE NC ONE OF FIVE CITIES VYING FOR TWO NEW NATIONAL FOOTBALL LEAGUE FRANCHISES LICENSES COST FROM 600 TO 5400 MINIMUM LOAN FROM NATIONSBANK CORP IS 2500 IN NEW JERSEY CONSTELLATION BANK TEAMS UP WITH RUTGERS TO PROMOTE A BOWLBOUND SAVINGS ACCOUNT FOR FANS TO SET ASIDE CASH FOR THE TRIP IF THE UNIVERSITY'S SCARLET KNIGHTS WIN A FOOTBALL BOWL GAME BID MANY TEAMS ACCEPT CREDIT CARDS FOR SEASON TICKETS NOW HOCKEY'S WINNIPEG JETS GO FURTHER WITH A PLAN FROM AVCO FINANCIAL SERVICES BUT IT ISN'T CHEAP SAYS ALAN FRIEDMAN OF TEAM MARKETING REPORT CHICAGO AVCO SAYS IT IS WORKING ON A MORE ATTRACTIVE PLAN THAN THE CURRENT ONE WHICH CHARGES 23 MONTHLY INTEREST276 ANNUALLY OTHER PLANS MAY ARISE DUE TO HIGH TICKET PRICES SAYS MR FRIEDMAN ADDING SOME ARDENT FANS DON'T MIND PAYING A FEW POINTS AN ALLAUDIO CABLE SERVICE GIVES OPERATORS A NEW CHANNEL OF REVENUE DIGITAL AUDIO A TWOYEAROLD SERVICE DELIVERS CDQUALITY MUSIC VIA CABLE A DIGITAL TUNER SUPPLIED BY CABLE OPERATORS HOOKS ONTO A CUSTOMER'S HOME STEREO SO FAR SOME 270000 CUSTOMERS ARE SIGNED UP FOR EITHER OF TWO RIVAL SERVICES DIGITAL MUSIC EXPRESS AND DIGITAL CABLE RADIO WHICH SPLIT THE FEES WITH CABLE OPERATORS CHRISTOPHER DIXON AN ANALYST AT PAINEWEBBER SAYS THAT UNLIKE VIDEO PROGRAMMING THE ALLAUDIO PRODUCT IS EXEMPTED FROM RATE REGULATION UNDER THE 1992 CABLE ACT DIGITAL AUDIO GIVES CABLE OPERATORS A WAY TO GENERATE INCREMENTAL REVENUES HE SAYS RICK CABLE OF MULTIVISION CABLE TELEVISION WHICH BEGAN OFFERING THE SERVICE LAST APRIL IN ANAHEIM CALIF SAYS IT IS AN ALTERNATIVE TO MUZAK AND ALLOWS US TO ADD BUSINESS NOT JUST RESIDENTIAL PATRONS TO EXPLAIN DIGITAL AUDIO TO CUSTOMERS SOME OPERATORS DO PROMOS WITH RECORD AND STEREO STORES THE COMMERCIALFREE SERVICE COSTS BETWEEN 5 AND 10 A MONTH INCLUDING TUNER AND REMOTE CONTROL JAPAN INC S IMAGE SLIPS IN A SURVEY OF 1000 US CONSUMERS FOR BROUILLARD COMMUNICATIONS ONLY 35 THOUGHT JAPANESE COMPANIES REPRESENTED FINANCIAL STABILITY VS 52 IN 1990 AS FOR QUALITY PRODUCTS 39 SAID JAPANESE FIRMS CAN CLAIM THE CHARACTERISTIC DOWN FROM 48 JONES BEACHGOERS IN LONG ISLAND NY MAY HAVE WANTED ONLY TO ESCAPE THE HEAT LAST WEEKEND BUT GOT A SIGN OF THE TIMES NYCJOBS IRENE COHEN TEMP AND PERM JOBS READ A SIGN TOWED BY PLANE MS COHEN OF IRENE COHEN PERSONNEL SERVICES SAYS WE WANTED TO GET THE WORD OUT THAT THERE ARE JOBS OUT THERE WASTE WATCHING LUFTHANSA COMPLETES A 2 1/2YEAR PROGRAM TO INTRODUCE REUSABLE PLASTIC COFFEE CUPS SAVING 330 TONS OF PLASTIC WASTE A YEAR WHAT TOOK SO LONG FINDING A REUSABLE PLASTIC THAT GRIPS A TRAY HOMEOPATHIC CURES GAIN A ROLE IN NURTURING DRUG STORES' WELLBEING SOME CHAINS START TO MARKET HOMEOPATHIC CURES WHICH TREAT AILMENTS BY GIVING PATIENTS DILUTED AMOUNTS OF SUBSTANCES THAT CAUSE SYMPTOMS LIKE THOSE OF THE DISEASE THEY ARE TAPPING THE POPULARITY OF NATURAL LESS HIGHTECH MEDICINE SAYS WENDY LIEBMANN OF WSL MARKETING NEW YORK THRIFT DRUG IN PITTSBURGH SELLS THE CURES IN ITS UPSCALE STORES THRIFTY DRUG STORES IN LOS ANGELES WHICH SELLS HOMEOPATHIC TEETHING PILLS AND SLEEP AIDS PLANS TO TEST A GROUP OF 20 TO 30 PRODUCTS IN SOME STORES A THRIFTY SPOKESMAN SAYS FAVORABLE WORDOFMOUTH HAS BUILT A MARKET LARGE ENOUGH FOR MASS RETAILERS BUT THE TREND WORRIES MEDICAL CRITICS WHO DISMISS THE THERAPY AS QUACKERY THEY WARN THAT SUCH CURES AREN'T HELD TO THE SAME REGULATORY STANDARDS AS OTHER DRUGS THE FDA SAYS IT DOES NO PREMARKET REVIEW OF HOMEOPATHIC DRUGS FOR SAFETY AND EFFICACY WHILE THE INDUSTRY LACKS HARD DATA NEIL TURNER OF NICHOLAS HALL & CO PHILADELPHIA RECKONS THAT HOMEOPATHIC RETAIL SALES TOTAL 120 MILLION A YEAR BRIEFS NABISCO FOODS GROUP NAMES A DIRECTOR OF EGGS TO TAKE CHARGE OF MARKETING EGG BEATERS AND DEVELOP OTHER EGG ALTERNATIVES WOMEN'S GOLF GLOVES FROM POCKETEC INC IN NEW JERSEY HAVE OPEN TIPS TO ACCOMMODATE LONG NAILS 9307150031 930715 BUSINESS BRIEF PACIFICORP UTILITY COMPANY TO REDEEM FOUR MORTGAGE BOND SERIES PACIFICORP PORTLAND ORE SAID IT WILL REDEEM 2317 MILLION IN AGGREGATE PRINCIPAL AMOUNT OF FOUR SERIES OF ITS HIGHESTCOST FIRSTSERIES MORTGAGE BONDS THE SERIES TO BE REDEEMED IN AUGUST ARE THE 8 3/4 SERIES DUE DEC 1 2016 OF UTAH POWER & LIGHT CO AT 105860 THE 8 3/4 SERIES DUE APRIL 1 2006 OF UTAH POWER & LIGHT CO AT 103630 THE 8 1/2 SERIES DUE MARCH 1 2007 OF UTAH POWER & LIGHT CO AT 104060 AND THE 8 3/8 SERIES DUE JAN 1 2004 OF PACIFIC POWER & LIGHT CO AT 102890 THE ELECTRIC UTILITY WHICH ALSO HAS INTERESTS IN TELECOMMUNICATIONS NATURAL RESOURCES AND FINANCIAL SERVICES SAID THE REDEMPTIONS ARE PART OF ITS PROGRAM TO CONTINUE TO REDUCE ITS COSTS BY TAKING ADVANTAGE OF DECLINING INTEREST RATES 9307150030 930715 BUSINESS BRIEF LOGICON INC FIRM SAYS 2NDQUARTER NET TO INCLUDE 400000 GAIN LOGICON INC SAID ITS FISCAL SECONDQUARTER NET INCOME WILL INCLUDE A 400000 ONETIME GAIN EQUAL TO FIVE CENTS A SHARE RELATED TO THE SETTLEMENT OF A GOVERNMENT CONTRACT DISPUTE THE DISPUTE INVOLVED A 1987 NAVY CONTRACT TO PROVIDE AIR TRAFFIC CONTROLLER TRAINING SYSTEMS LOGICON BASED IN LOS ANGELES ALLEGED THAT THE NAVY CAUSED THE COMPANY TO DO MORE WORK THAN THE CONTRACT REQUIRED LOGICON FILED A 4 MILLION CLAIM WITH THE US COURT OF FEDERAL CLAIMS IN SEPTEMBER 1991 THE COMPANY DIDN'T DISCLOSE THE AMOUNT OF THE SETTLEMENT A SEPARATE 9 MILLION CLAIM INVOLVING ANOTHER NAVY CONTRACT IS STILL PENDING WITH THE COURT IN THE SECOND QUARTER ENDED SEPT 30 1992 THE ELECTRONICSYSTEMS CONCERN EARNED 37 MILLION OR 49 CENTS A SHARE 9307150029 930715 REVIEW & OUTLOOK EDITORIAL THE DOG ATE IT JOHN MAYNARD KEYNES PROBABLY THE ONLY DEAD WHITE MALE POPULAR IN THE CLINTON INNER CIRCLE ONCE SAID TO SOMEBODY BELABORING HIM ABOUT A FLIPFLOP WHEN THE FACTS CHANGE I CHANGE MY MIND WHAT DO YOU DO SIR APOLOGIES TO THE EXACT WORDS PRESIDENT BILL CLINTON HAD NO TROUBLE CHANGING HIS MIND ABOUT OFFERING A MIDDLECLASS TAX CUT AFTER HE GOT A LOAD OF CBO'S JANUARY DEFICIT UPDATE I HAVE TO PUT EVERYTHING BACK ON THE TABLE HE SAID AT THE TIME THE DEFICIT IS NOW ABOUT 50 BILLION BIGGER OVER FIVE YEARS THAN IT WAS THOUGHT TO BE IN AUGUST THUS WAS THE CLINTON BUDGET PLAN BORN THE TABLE NOW A VERITABLE GROANING BOARD OF NEW TAX INCREASES NOW HOWEVER HIS OWN WHITE HOUSE BUDGET OFFICE IN A REPORT THAT BY LAW MUST BE RELEASED TODAY IS EXPECTED TO REVEAL THAT THE DEFICIT WILL ACTUALLY BE 50 BILLION SMALLER THAN EXPECTED IN THIS FISCAL YEAR ALONE SO DOES MR CLINTON CHANGE HIS MIND AGAIN NAAAAH THE REPORT IS BEING SHOVED BEHIND A FILE CABINET AT OMB IN DEFIANCE OF THE LAW THE WORD AROUND WASHINGTON THIS WEEK HAS BEEN THAT IT'LL STAY THERE UNTIL THE HOUSESENATE CONFEREES FINISH THE CLINTON BUDGET WHY CONFUSE THESE FOLKS WITH DATA IF THIS SUBTERFUGE WERE RONALD REAGAN'S DOING IN 1986 DAVID OBEY WOULD BE CALLING FOR HIS IMPEACHMENT PETE DOMENICI A REPUBLICAN AND CERTIFIED DEFICIT HAWK SUGGESTED ON THE SENATE FLOOR YESTERDAY THAT THE CLINTONITES ARE AFRAID THE GOOD NEWS WILL GIVE WAVERING DEMOCRATS AN EXCUSE TO JUMP SHIP NO DOUBT BUT THERE'S A DEEPER CONUNDRUM HERE FOR THE CLINTONITES OMB'S PROJECTIONS ARE LIKELY TO SHOW THE DEFICIT SHRINKING THIS YEAR WHEN MR CLINTON IS DOING NOTHING THEN SHOOTING UP IN THE OUTYEARS WHEN HIS PROGRAM IS KICKING IN NOT EXACTLY THE BEST ADVERTISEMENT FOR A PROGRAM THAT'S SUPPOSED TO SLASH THE DEFICIT SOMEBODY MIGHT CATCH ON AS IF THEY HAVEN'T GOT ENOUGH CLUES ALREADY THREE MAJOR DEFICIT REDUCTION PACKAGES HAVE BEEN INFLICTED ON THE ECONOMY SINCE 1983 AND NOT A SINGLE ONE LED TO ANYTHING BUT UPWARD REVISIONS IN LATER DEFICIT CALCULATIONS IT MUST FINALLY BE ADMITTED THAT CONGRESS DOES NOT ENACT HIGHER TAXES TO CURB THE DEFICIT BUT TO INCREASE SPENDING MR CLINTON'S TURN ON THIS TREADMILL WON'T TURN OUT ANY DIFFERENTLY LIKE INSPECTOR CLOUSEAU THE CLINTONITES ARE BUSY SEARCHING OVERSEAS FOR THE CULPRIT BEHIND THE ECONOMY'S REFUSAL TO SPIN OUT THE USUAL POSTRECESSION JOB GROWTH YOU CAN'T PICK UP A NEWSPAPER THESE DAYS WITHOUT BECOMING INSTANTLY AWARE THAT THE RAIN OF TAXES AND MANDATES COMING DOWN FROM WASHINGTON IS THE REAL REASON EMPLOYERS AREN'T HIRING THE BUDGET PLAN'S SOAKTHERICH TAXES WILL BE MURDER ON SMALL BUSINESS INVESTORS AND JOB CREATION AND IF TREASURY DIDN'T ALREADY SUSPECT THAT THESE TAXES WON'T YIELD MUCH IN REVENUES THE FRUITS OF THE 1990 BUDGET DEAL ARE NOW IN TURNS OUT THAT RAISING TAXES ON THE RICH ACTUALLY PROMPTED REVENUES TO SHRINK FOR THE FIRST TIME IN EIGHT YEARS COLLECTIONS FROM THE RICH WENT DOWN WHILE COLLECTIONS FROM EVERYBODY ELSE WENT UP MAYBE OMB COULD PULL OUT ITS REPORT LONG ENOUGH TO NOTICE ONE REASON WHY THIS YEAR'S DEFICIT IS SMALLER FLUKEY TIMING OF PAYCHECKS A CBO BUDGETEER TELLS US THAT'S A POLITE WAY OF SAYING FOLKS HAVE BEEN MOVING UP INCOME TO BEAT THE CLINTON TAXES JOSEPH MINARIK OMB'S DEPUTY CHIEF RECENTLY POKED HIS HEAD OUT FROM BEHIND THE FILE CABINET TO SAY LOWER INTEREST RATES WERE PRINCIPALLY BEHIND THE SHRINKING DEFICIT NUMBERS THE CONGRESSIONAL BUDGET OFFICE DISAGREES CBO SAYS SLOWER GROWTH IN MEDICARE MEDICAID AND BANK BAILOUTS WERE THE REASON FOR THE DEFICIT SHRINKAGE PLUS AN UPTICK IN REVENUES INTEREST RATES HAD ALMOST NOTHING TO DO WITH IT THIS IS THE KIND OF CONFUSION YOU GET WHEN YOU MAKE THE DEFICIT THE CENTERPIECE OF YOUR ECONOMIC THINKING INSTEAD OF REVENUES EXPENDITURES AND THE INCENTIVES THEY CREATE VIRTUALLY NO ONE IN WASHINGTON REALLY BELIEVES IN THE CLINTON PLAN AS YOU CAN PLAINLY DERIVE FROM THE FORMULA THE BELTWAY ESTABLISHMENT IS USING TO JUSTIFY VOTING THIS ARSENIC INTO THE ECONOMY THE DEMOCRATS ARE REDUCED TO PEDDLING A SOB STORY ABOUT HOW FAILING TO PASS THE PACKAGE WILL DOOM THE YOUNG CLINTON PRESIDENCY OBLIGINGLY THE MEDIA IS RUNNING OVER ITS BANKS WITH STORIES ABOUT THE CHEMISTRY BETWEEN ROSTY AND PAT THE ODD COUPLE ON WHOSE BROAD SHOULDERS AND POINTY HEAD REST THE ONUS OF RESCUING BILL'S POLITICAL MANHOOD ON THE EVIDENCE OF THE SHRINKING BUT INVISIBLE DEFICIT THOUGH IT SEEMS TO US THAT BILL'S MANHOOD WOULD EMERGE IN FINE SHAPE IF HE SAID THE FACTS HAVE CHANGED SO I'M CHANGING MY PLAN PUT PLAINLY THE US DOES NOT NEED A TAX INCREASE 9307150028 930715 BUSINESS BRIEF LEVI STRAUSS ASSOCIATES INC FISCAL SECONDQUARTER NET FALLS 20 EXPENSES CITED CITING HIGHER EXPENSES LEVI STRAUSS ASSOCIATES INC SAID FISCAL SECONDQUARTER PROFIT FELL 20 ON SLIGHTLY HIGHER SALES THE PRIVATELY HELD PARENT OF LEVI STRAUSS & CO SAID NET INCOME FOR THE QUARTER ENDED MAY 30 WAS 91 MILLION COMPARED WITH 1131 MILLION IN THE YEARAGO QUARTER THE SAN FRANCISCO APPAREL CONCERN REPORTED RECORD SALES OF 134 BILLION FOR THE QUARTER COMPARED WITH SALES OF 131 BILLION A YEAR EARLIER REFLECTING AN INCREASE IN SALES IN ITS EUROPEAN AND ASIA PACIFIC DIVISIONS FOR THE FIRST SIX MONTHS OF 1993 NET INCOME ROSE 2 TO 2237 MILLION FROM 2189 MILLION IN THE YEARAGO PERIOD SALES CLIMBED TO 27 BILLION FROM 25 BILLION REPORTED FOR THE FIRST HALF OF 1992 DEMAND FOR THE COMPANY'S BASIC DENIM PRODUCTS OUTSIDE THE US GENERATED A 7 INCREASE IN SECONDQUARTER OVERSEAS SALES TO 5319 MILLION DESPITE AN UNFAVORABLE EUROPEAN CURRENCY EXCHANGE RATE LEVI SAID FOR THE YEARTODATE PERIOD DOLLAR SALES OUTSIDE THE US INCREASED 8 TO 11 BILLION 9307150027 930715 FLASH CHIP OUTPUT TO RISE SANTA CLARA CALIF INTEL CORP SAID IT IS BOOSTING ITS PRODUCTION OF SOCALLED FLASH MEMORY CHIPS IN RESPONSE TO A WORLDWIDE SHORTAGE FLASH MEMORY CHIPS WHICH CAN RETAIN STORED DATA EVEN AFTER THE POWER SUPPLY IS CUT ARE BEGINNING TO REPLACE OTHER MEMORY CHIPS AND DATASTORAGE DEVICES SUCH AS DISK DRIVES IN SOME COMPUTERS INTEL SAID A SURGE IN DEMAND AND CERTAIN INTERNAL DELAYS HAD CREATED A SHORTAGE OVER THE NEXT 18 MONTHS INTEL THE LARGEST SUPPLIER OF THE CHIPS SAID IT WILL INCREASE ITS OUTPUT FIVEFOLD BY 1994 INTEL EXPECTS TO SHIP 80 MILLION FLASH CHIPS A YEAR INTEL SAID PRODUCTION OF CERTAIN FLASH MEMORY CHIPS AT A FACILITY IN TATEYAMA JAPAN RUN BY ITS SUBCONTRACTOR NPNX AND AT ITS OWN FACILITY IN ALBUQUERQUE NM IS NOW AHEAD OF SCHEDULE THE CHIP MAKER SAID IT EXPECTS TO START DELIVERING FLASH CHIPS MADE BY JAPAN'S SHARP CORP IN THE FOURTH QUARTER OF 1993 ALSO AHEAD OF ITS PREVIOUS PLAN INTEL SAID IT AND ITS PARTNERS PLAN TO INVEST MORE THAN 250 MILLION IN NEW FLASH MEMORY CAPACITY THIS YEAR 9307150026 930715 BUSINESS BRIEF PERCEPTRONICS INC COMPANY POSTS LOSS WARNS OF RISK OF BANKRUPTCY FILING PERCEPTRONICS INC POSTED A 47 MILLION LOSS FOR THE FISCAL FOURTH QUARTER AND SAID IT COULD BE FORCED TO SEEK BANKRUPTCYLAW PROTECTION FROM CREDITORS IF CERTAIN CONDITIONS AREN'T MET THE LOSS FOR THE QUARTER ENDED MARCH 31 WAS EQUAL TO 134 A SHARE IN THE YEAREARLIER PERIOD THE WOODLAND HILLS CALIF MILITARY AND COMMERCIAL SOFTWARE CONCERN HAD NET INCOME OF 154476 OR FOUR CENTS A SHARE REVENUE PLUNGED 74 TO 19 MILLION FROM 73 MILLION PERCEPTRONICS SAID ITS ABILITY TO CONTINUE AS A GOING CONCERN DEPENDS ON ITS RECEIVING ABOUT 2 MILLION TO MEET WORKING CAPITAL NEEDS FOR THE NEXT FOUR MONTHS AND UPON MEETING A CERTAIN AVERAGE MONTHLY SALES LEVEL IN FISCAL 1994 WE WERE HIT HARDER THAN EXPECTED BY THE INTERNATIONAL DEFENSE DOWNTURN SAID GERSHON WELTMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE ADJUSTED OUR PERSONNEL AND SUPPORT STRUCTURE ACCORDINGLY BUT WERE NOT ABLE TO MOVE QUICKLY ENOUGH BECAUSE OF OBLIGATIONS TO COMPLETE ONGOING PRODUCTION CONTRACTS 9307150025 930715 INTERNATIONAL FOR THRIFTY ASIA RAINY DAY HAS ARRIVED INFRASTRUCTURE NEEDS COULD REVERSE HIGH RATE OF SAVINGS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG NOBODY SAVES LIKE TAIWAN FOR EVERY FOUR DOLLARS THEY MAKE THE FRUGAL PEOPLE OF TAIWAN SALT ONE DOLLAR AWAY EVEN THE GOVERNMENT SAVES IT HAS 83 BILLION IN HARD CURRENCY MORE THAN ANY OTHER COUNTRY SUCH THRIFT SPAWNED TAIWAN'S ECONOMIC MIRACLE LIFTING IT FROM AGRARIAN BACKWATER TO MANUFACTURING POWERHOUSE IN A GENERATION JUST AS HIGH SAVINGS DID FOR MALAYSIA SINGAPORE SOUTH KOREA AND THAILAND THE ABUNDANCE OF CASH NOW JUICES STOCK MARKETS BOOSTS PROPERTY PRICES AND SPURS THE CONSUMPTION THAT KEEPS THE REGION'S NEWLY INDUSTRIALIZED ECONOMIES HURTLING ALONG THAT MAY BE CHANGING THE DARK SIDE OF ECONOMIC GROWTH WAS INFRASTRUCTURAL CHAOS TRAFFIC SNARLS AIR AND WATER POLLUTION OVERWORKED TELEPHONE EXCHANGES AND POWER OUTAGES ARE AS MUCH TRADEMARKS OF ASIA OUTSIDE JAPAN AS GROWTH THE STRAINS ARE BECOMING CONSTRAINTS NO LONGER ABLE TO SCRIMP ASIA'S ECONOMIC DYNAMOS SUDDENLY ARE EMERGING AS THE WORLD'S BIGGEST SPENDERS IT'S AN ELEMENTAL CHANGE ANALYSTS SAY THAT WILL REVERBERATE IN THE ECONOMY STOCK MARKETS BANKING AND EVEN LIFESTYLES MY SENSE IS THAT IN THE 1990S JUST ABOUT EVERY COUNTRY I GO TO HAS MUCH MORE AMBITIOUS PLANS THAN I REMEMBER FOR THE 1970S OR 1980S SAYS HUGH PAYMAN DIRECTOR OF RESEARCH FOR THE SINGAPORE OFFICE OF KLEINWORT BENSON SECURITIES LTD THIS IS GOING TO CAUSE A REAL TRANSFORMATION SAYS PAUL SHULTE A STRATEGIST AT CS FIRST BOSTON GROUP THOUGH MASSIVE SPENDING ON INFRASTRUCTURE PROBABLY WILL PROPEL ECONOMIES IN THE REGION HE THINKS MASSIVE SPENDING ON ROADS AIRPORTS RAILWAYS AND OTHER INFRASTRUCTURE PROJECTS WILL CAUSE A REVERSAL OF ASIA'S HIGH SAVING RATES MR SHULTE ESTIMATES THAT TOTAL SPENDING ON INFRASTRUCTURE AT TODAY'S PRICES COULD AMOUNT TO 600 BILLION IN THE NEXT HALF DECADE SOME ECONOMISTS PUT THE SUM AS HIGH AS 800 BILLION IF GOVERNMENTS FULFILL ALL THEIR PROMISES NEARLY EVERY COUNTRY HAS MAJOR PROJECTS IN THE WORKS SOUTH KOREA AND TAIWAN ARE BOTH IN THE MIDST OF HUGE PROGRAMS SEOUL IS PLANNING TO SPEND AROUND 400 BILLION TAIPEI 245 BILLION EVEN SMALLER COUNTRIES HAVE BIG PROJECTS SINGAPORE IS PUTTING IN A 24 BILLION UNDERGROUND ROAD MALAYSIA IS BUILDING A 10 BILLION AIRPORT AND THAILAND IS ADDING A TANGLE OF NEW ROADS AND TRAIN LINES THAT ANALYSTS PREDICT WILL COST 25 BILLION INDONESIA PLANS TO SPEND AT LEAST 50 BILLION ON TRANSPORT AND ENERGY PROJECTS MORE UNPREDICTABLE IS CHINA WHICH IS GROWING AT A BREAKNECK PACE MR SHULTE ESTIMATES CHINA WILL SPEND AT LEAST 92 BILLION ON INFRASTRUCTURE IN THE NEXT FIVE YEARS MUCH OF THE MONEY WILL BE BORROWED FROM ABROAD CHINA IS A GIANT BLACK HOLE SAYS MICHAEL BROADFOOT A POLITICAL AND ECONOMIC RISK CONSULTANT IN HONG KONG YOU NAME THE AMOUNT IT COULD TAKE IT AND THE GIANT STRATEGIC QUESTION IS WHAT HAPPENS TO THAILAND AND INDIA WHICH ALSO NEED CAPITAL THE ANSWER WILL LIE IN HOW THE REGION COMES UP WITH THE MONEY TO FUND INFRASTRUCTURE DEVELOPMENT THE SUMS NEEDED WILL ALMOST CERTAINLY OVERWHELM THE REGION'S ABILITY TO SAVE THE GAP BETWEEN SAVINGS AND INVESTMENT ANALYSTS SAY IS A KEY BAROMETER OF FUTURE CAPITAL NEEDS AND GROWTH ABILITY THOSE COUNTRIES WITH EXCESS SAVINGS WILL BORROW LESS AND GROW MORE EASILY THOSE IN DEFICIT WILL BORROW MORE AND GROW WITH DIFFICULTY IN THE PAST FIVE YEARS MR SHULTE WROTE IN A RECENT REPORT EAST ASIA OUTSIDE JAPAN HAD SAVED 948 BILLION MORE THAN IT SPENT MONEY THAT WAS AVAILABLE FOR INVESTMENT OUTSIDE THE REGION OR IN STOCKS AND BONDS BY 1998 HE PREDICTS ASIA WILL USE 160 BILLION MORE IN CAPITAL THAN IT WILL HAVE IN SAVINGS THE HUGE LIQUIDITY THAT EXISTED IN ASIA IS GOING TO COME OFF SAYS MARC FABER AN INDEPENDENT FUND MANAGER IN HONG KONG SO MUCH MONEY WILL BE ABSORBED BY INFRASTRUCTUAL SPENDING THAT STOCKMARKET PRICES MAY FALTER PRICEEARNINGS RATIOS A WAY OF JUDGING A STOCK'S VALUE BY WEIGHING ITS PRICE AGAINST ITS PERSHARE EARNINGS ARE LIKELY TO CONTRACT MR FABER SAYS IT WILL BE LIKE EUROPE IN THE 1960S HE SAYS CONTINUOUS ECONOMIC GROWTH AND NOT VERY GOOD STOCK MARKETS TO COVER THE GAP BETWEEN SAVINGS AND GOVERNMENT INFRASTRUCTURE SPENDING ASIA WILL HAVE TO START BORROWING HEAVILY FROM ABROAD EITHER FROM BANKS OR BY ISSUING DEBT BUT REALESTATE PROBLEMS IN EUROPE THE US AND JAPAN ALONG WITH STRICT CAPITAL RULES IMPOSED BY REGULATORS HAVE LEFT BANKS THE WORLD OVER WITH LITTLE SPARE CAPITAL FOR DEVELOPING COUNTRIES AND THE REGION'S DIRECTINVESTMENT SUGAR DADDY JAPAN IS IN ITS MOST SERIOUS RECESSION IN TWO DECADES CURTAILING ITS INVESTMENTS AS A RESULT MANY ANALYSTS BELIEVE ASIAN COUNTRIES SOON WILL START ISSUING BONDS IN INTERNATIONAL MARKETS SOME ALSO MAY TRY TO ISSUE BONDS DOMESTICALLY EVEN IF IT MEANS DEVELOPING CAPITAL MARKETS IN THEIR OWN COUNTRIES EVEN MORE CRITICAL THAN WHO HAS GOT THE SAVINGS IS WHO HAS GOT THE FINANCIAL SYSTEM TO MOBILIZE THE SAVINGS SAYS MR PAYMAN OF KLEINWORT BENSON INFRASTRUCTURE COSTS MAY FORCE COUNTRIES THAT WANT TO MARSHAL DOMESTIC OR FOREIGN RESOURCES TO LIBERALIZE THEIR FINANCIAL SYSTEMS HE SAYS SOME COUNTRIES MAY TRY TO FUND SPENDING ENTIRELY INTERNALLY IN TAIWAN SAYS PETER KURZ CHIEF REPRESENTATIVE AT BARING SECURITIES LTD'S TAIPEI OFFICE THE GOVERNMENT IS LIKELY TO ISSUE DOMESTIC BONDS TO RAISE FUNDS FOR INFRASTRUCTURE IF THEY ABSOLUTELY HAD TO THEY'D GO THE FOREIGNBOND ROUTE HE SAYS FOR THE PEOPLE OF THE REGION ANALYSTS SAY THE SPENDING SPREE WILL BRING LIFESTYLE CHANGES THE CAUSEWAY BETWEEN MALAYSIA AND SINGAPORE NOW IS ABSOLUTELY CHOKED NOTES STEVEN CM WONG A STRATEGIST AT ZALIK SECURITIES SDN BHD AND FORMER GOVERNMENT ADVISER IN MALAYSIA'S CAPITAL KUALA LUMPUR BY PUTTING IN A SECOND CROSSING AT A COST OF MORE THAN 1 BILLION MALAYSIA WILL IMPROVE COMMERCIAL AND TOURISM LINKS WITH NEIGHBORING SINGAPORE A CITYSTATE PACKED WITH HIGHTECH INDUSTRIAL PARKS SHOPPING MALLS AND RESTAURANTS BY IMPROVING SUCH LINKS INFRASTRUCTURE SPENDING IN THE REGION WILL PRODUCE GREATER INTEGRATION AND GOVERNMENTS HOPE ECONOMIC GROWTH IN THE LONG RUN THAT WILL BRING A RESURGENCE OF TRADITIONAL PATTERNS THE FASTER WE GROW SAYS MR WONG THE MORE WE SAVE HUGH PEYMAN IS DIRECTOR OF RESEARCH FOR THE SINGAPORE OFFICE OF KLEINWORT BENSON SECURITIES LTD AND PAUL SCHULTE IS A STRATEGIST AT CS FIRST BOSTON GROUP IN HONG KONG IN AN ARTICLE YESTERDAY ABOUT INFRASTRUCTURE SPENDING IN ASIA THEIR NAMES WERE MISSPELLED 9307150024 930715 BUSINESS BRIEF JOHNSON & HIGGINS INSURANCE BROKER PURCHASES TRANSGLOBE GUERNSEY LTD INSURANCE BROKER JOHNSON & HIGGINS NEW YORK SAID IT ACQUIRED TRANSGLOBE GUERNSEY LTD A MANAGER OF CAPTIVE INSURANCE COMPANIES FOR AN UNDISCLOSED AMOUNT JOHNSON & HIGGINS SAID DAVID JOHNSTONE 45 YEARS OLD TRANSGLOBE'S GENERAL MANAGER WILL CONTINUE TO HEAD TRANSGLOBE AS MANAGING DIRECTOR CAPTIVE INSURERS USED AS A FORM OF SELFINSURANCE ARE CONTROLLED BY THE COMPANIES THAT NEED THE COVERAGE TRANSGLOBE WAS A UNIT OF ENGLISH & AMERICAN GROUP PLC A LONDONBASED COMPANY THAT IS IN LIQUIDATION JOHNSON & HIGGINS A PRIVATELY HELD COMPANY HAD REVENUE OF 970 MILLION LAST YEAR ACCORDING TO AN ESTIMATE BY BUSINESS INSURANCE MAGAZINE 9307150023 930715 BUSINESS BRIEF VARITY CORP UNIT GETS VOLKSWAGEN JOB FOR ANTILOCK BRAKING GEAR VARITY CORP SAID ITS KELSEYHAYES GROUP RECEIVED A CONTRACT TO SUPPLY ANTILOCK BRAKING SYSTEMS TO VOLKSWAGEN AG VALUED AT 135 MILLION A YEAR VARITY WILL BEGIN SUPPLYING THE SYSTEMS IN 1996 AND THE CONTRACT WILL RUN FOR THE LIFE OF THE AUTOMOBILE ON WHICH THE SYSTEMS ARE USED VARITY HAD 1992 SALES OF 34 BILLION VARITY SAID IN BUFFALO NY THAT IT SEES MUCH POTENTIAL FOR ITS ANTILOCK BRAKING SYSTEMS IN EUROPE WHERE 60 OF AUTOS ARE EXPECTED TO HAVE ANTILOCK BRAKES IN 1997 UP FROM 25 CURRENTLY 9307150022 930715 LETTERS TO THE EDITOR REMEMBERING LADY BIRD THE CRYBABY ADMINISTRATION LEISURE & ARTS JUNE 28 WAS ACCURATE IN EVERY DETAIL BUT ONE LADY BIRD JOHNSON LIVED IN KARNACK TEXAS NOT KARKNACK THIS LITTLE TOWN WAS IN THE FIRST CONGRESSIONAL DISTRICT OF TEXAS WHEN I WAS 19 YEARS OLD REP WRIGHT PATMAN AT THAT TIME CHAIRMAN OF THE BANKING AND CURRENCY COMMITTEE HIRED ME ONE OF THE FIRST THINGS HE TOLD ME WAS THAT LADY BIRD WAS ONE OF HIS CONSTITUENTS ALL THOSE YEARS AGO I REMEMBER HOW GRACIOUS AND DIGNIFIED SHE WAS THE PROGRAM SHOWED THIS 9307150021 930715 BUSINESS BRIEF RUBBERMAID INC SECONDPERIOD NET ROSE 16 ON NEWPRODUCT STRENGTH RUBBERMAID INC CREDITING NEW PRODUCTS SAID ITS SECONDQUARTER EARNINGS JUMPED 16 TO 506 MILLION OR 32 CENTS A SHARE FROM 437 MILLION OR 27 CENTS A SHARE A YEAR AGO SALES CLIMBED 9 TO 488 MILLION FROM 449 MILLION THE WOOSTER OHIO CONSUMER PRODUCTS COMPANY ALSO SAID IT EXPECTS RECORD SALES AND EARNINGS THIS YEAR IN 1992 THE RECORD YEAR RUBBERMAID EARNED 1641 MILLION OR 102 A SHARE ON 181 BILLION IN SALES IN A STATEMENT WOLFGANG R SCHMITT CHIEF EXECUTIVE OFFICER SAID NEW PRODUCT EFFORTS HAVE BEEN INTENSIFIED WITH PLANS TO EXCEED 1992'S LEVEL OF INTRODUCING ON AVERAGE A NEW PRODUCT EVERY DAY WITH THE MOMENTUM OF THESE NEW PRODUCTS AND SOME FIRMING IN THE ECONOMY WE WOULD EXPECT SECONDHALF SALES COMPARISONS TO EXCEED THOSE OF THE FIRST HALF RUBBERMAID HAD 972 MILLION IN SALES IN THE YEAR'S FIRST SIX MONTHS 9307150020 930715 INTERNATIONAL FUJITSU TO SLASH SIZE OF WORK FORCE BY 6000 IN 2 YEARS BY MASAYOSHI KANABAYASHI AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO FUJITSU LTD HURT BY THE DOWNTURN IN SALES OF ITS MAINFRAME COMPUTERS SAID THURSDAY IT WOULD CUT ITS WORK FORCE BY ABOUT 6000 PEOPLE OR 11 DURING THE NEXT TWO YEARS AS IS INTERNATIONAL BUSINESS MACHINES CORP FUJITSU IS THE VICTIM OF A WORLDWIDE DOWNSIZING TREND TOWARD USE OF SMALLER COMPUTERS SUCH AS PERSONAL COMPUTERS AND WORK STATIONS THE PROFIT MARGINS ON THESE COMPUTERS ARE SHARPLY LOWER THAN THOSE OF HIGHPRICED MAINFRAMES LARGELY BECAUSE THE SMALLER COMPUTERS ARE OPEN SYSTEMS THAT ALLOW USERS TO MIX AND MATCH EQUIPMENT AND SOFTWARE FROM DIFFERENT VENDORS IN FISCAL 1993 THAT ENDED MARCH 31 FUJITSU HAD ITS FIRSTEVER DEFICIT A CONSOLIDATED PRETAX LOSS OF 161 BILLION YEN 1491 MILLION THE COMPANY REPORTED A 3 DROP IN SALES OF COMPUTER EQUIPMENT AND A 135 ORDERS DECLINE FISCAL 1994 IS LIKELY TO BE WORSE BECAUSE THE COMPANY ESTIMATES THAT ITS COMPUTER SALES WILL FALL AN ADDITIONAL 131 AS A RESULT FUJITSU ALSO HAS BEEN SEARCHING FRANTICALLY FOR WAYS TO STEM ITS LOSSES ALTHOUGH UNLIKE IBM IT HAS DRAWN THE LINE AT ACTUALLY LAYING OFF EMPLOYEES INSTEAD THE COMPANY HAS PREVIOUSLY ANNOUNCED PLANS TO CUT 500 ADMINISTRATIVE POSITIONS TO REDUCE ITS HIRING OF NEW COLLEGE GRADUATES TO 300 THIS YEAR FROM 2200 LAST YEAR AND TO MAKE ITS ANNUAL CAPITALSPENDING PLANS ON A MORE SELECTIVE CASEBYCASE BASIS RATHER THAN BY SPENDING WITHIN AN OVERALL BUDGET THE REDUCTION ANNOUNCED THURSDAY WOULD LEAVE FUJITSU THE WORLD'S SECONDLARGEST COMPUTER MAKER WITH A WORK FORCE OF ABOUT 50000 FUJITSU SAID IT WILL CUT 4600 JOBS THIS YEAR AND NEXT YEAR BY ATTRITION IT ALSO WILL ELIMINATE 1400 TO 1600 POSITIONS BY MOVING EMPLOYEES TO AFFILIATES AND OTHER COMPANIES IN MORNING TRADING THURSDAY FUJITSU'S STOCK CLOSED AT 755 UP 15 POINTS ANALYSTS SUCH AS SHIGERU YOSHINAKA OF BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD HAILED THE MOVE AS GOOD FOR FUJITSU'S BOTTOM LINE ALTHOUGH THEY WARNED IT WILL TAKE SOME TIME TO SHOW RESULTS MR YOSHINAKA ADDED THAT FUJITSU IS LIKELY TO HAVE ANOTHER LOSS THIS YEAR AND WILL CONTINUE TO SUFFER FROM THE COMPUTER SLUMP FOR A COUPLE OF YEARS MR YOSHINAKA HOWEVER SAID HE BELIEVED FUJITSU WAS MAKING PROGRESS IN SHIFTING ITS FOCUS FROM MAINFRAMES TOWARD SMALLER COMPUTERS AND COMMUNICATIONS SYSTEMS 9307150019 930715 DELTA EXTENDS TO AUG 31 ITS SALE ON EUROPEAN FARES ATLANTA DELTA AIR LINES IN A SIGN OF CONTINUED WEAK TRANSATLANTIC TRAFFIC EXTENDED ITS SUMMER FARE SALE TO EUROPE THROUGH AUG 31 THE AIRLINE ALSO INTRODUCED DISCOUNT FARES TO EUROPE FOR THE FALL AND WINTER DELTA WHICH SERVES 33 EUROPEAN CITIES DIDN'T INDICATE HOW MUCH TRAVELERS WOULD SAVE WITH EITHER THE SUMMER SALE PRICES OR THE FALL AND WINTER DISCOUNTS THE SUMMER SALE WHICH WAS TO EXPIRE TODAY REQUIRES A SATURDAY NIGHT STAY AND 40HOUR ADVANCE PURCHASE A ROUNDTRIP TICKET BETWEEN NEW YORK AND MUNICH COSTS 768 THE FALL DISCOUNTS APPLY TO TRAVEL IN SEPTEMBER OR OCTOBER AND REQUIRE A SEVENDAY ADVANCE PURCHASE AND SEVENDAY MINIMUM STAY A SAMPLE ROUNDTRIP FARE IS 618 BETWEEN WASHINGTON AND BRUSSELS THE WINTER DISCOUNTS WHICH APPLY TO TRAVEL BETWEEN NOV 1 AND MARCH 31 WILL OFFER SLIGHTLY LOWER PRICES THAN THE FALL DISCOUNT 9307150018 930715 ABREAST OF THE MARKET INDUSTRIALS CLIMB 2711 TO 354255 AS INTEREST RATES TAKE A TUMBLE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS RUSHED TO LOAD UP ON BLUECHIP STOCKS AMID TUMBLING INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2711 POINTS TO 354255 FEWER THAN 13 POINTS BELOW ITS ALLTIME HIGH OF 355483 STANDARD & POOR'S 500STOCK INDEX GAINED 199 POINTS TO 45008 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 097 POINT TO 24935 VOLUME YESTERDAY ON THE BIG BOARD BALLOONED TO 285900000 SHARES FROM 236730000 SHARES TUESDAY ADVANCING ISSUES BEAT DECLINERS 1224 TO 792 STOCKS STARTED THE DAY HIGHER PROPELLED BY A REPORT THAT CONSUMER PRICES WERE UNCHANGED LAST MONTH THE SECOND TAME INFLATION READING THIS WEEK HELPED SPARK A STRONG RALLY IN THE BOND MARKET THAT DROVE THE YIELD ON THE TREASURY'S 30YEAR BOND DOWN TO A 16YEAR LOW OF 656 STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SAID THE COMBINATION OF FALLING INTEREST RATES AND IMPROVING EARNINGS AT MANY COMPANIES SUGGEST THAT STOCK PRICES CAN CLIMB FURTHER WHAT'S REALLY DRIVING STOCKS IS THE PERCEPTION THAT THE MARKET CYCLE MAY STILL HAVE A LOT OF STRENGTH IN IT SAID MR RESNICK HE SAID LOWER INTEREST RATES ARE HELPING TO UNLOCK THE DOOR TO THE NEXT PHASE IN THE MARKET CYCLE IN WHICH ECONOMICALLY SENSITIVE STOCKS WILL TAKE THE LEADERSHIP POSITIONS SEVERAL CYCLICAL STOCKS POSTED STRONG GAINS YESTERDAY MINNESOTA MINING & MANUFACTURING CLIMBED 1 TO 107 3/4 SEARS ROSE 1 7/8 TO 44 3/8 AND INTERNATIONAL PAPER GAINED 1 TO 64 1/8 AFTER REPORTING SURPRISINGLY STRONG EARNINGS TUESDAY DESPITE THE DECLINE IN INTEREST RATES SOME FINANCIAL STOCKS SUFFERED MOST PROMINENT AMONG THEM JP MORGAN WHICH FELL 1 1/4 TO 70 1/8 DAVID BERRY A BANK ANALYST AT KEEFE BRUYETTE & WOODS SAID HE THINKS THE SELLOFF IN BANK STOCKS IS TEMPORARY HE SUGGESTED THAT INVESTORS MIGHT HAVE BEEN TAKING PROFITS IN THE BANK SECTOR YESTERDAY SINCE THESE STOCKS HAVE RALLIED 10 SINCE HITTING A LOW ON JUNE 7 I THINK THE GROUP IS GOING TO SNAP BACK IN THE NEXT FEW DAYS SAID MR BERRY FIRST CHICAGO HAD SOME TERRIFIC TRADING RESULTS AND IF THE ENVIRONMENT IS GOOD FOR ONE COMPANY IT'S PROBABLY GOOD FOR A BUNCH OF COMPANIES FIRST CHICAGO EDGED UP 1/4 TO 42 1/2 AFTER REPORTING THAT ITS SECONDQUARTER PROFIT SWELLED TO 181 A SHARE FROM 32 CENTS A SHARE A YEAR EARLIER SHAWMUT NATIONAL EASED 1/2 TO 23 1/4 EVEN THOUGH ITS NET INCOME FOR THE SECOND QUARTER GREW TO 56 CENTS A SHARE FROM NINE CENTS SIGNET BANKING FELL 4 TO 54 1/2 INVESTORS SHRUGGED OFF THE BANK'S 50 GAIN IN SECONDQUARTER NET AND FOCUSED INSTEAD ON ITS NARROWER PROFIT MARGIN CHARLES SCHWAB LOST 1 3/8 TO 27 5/8 THE DROP CAME DESPITE THE DISCOUNT BROKER'S SECONDQUARTER PROFIT OF 53 CENTS A SHARE COMPARED WITH 31 CENTS A YEAR EARLIER CHARLES SCHWAB ALSO TOLD INVESTORS THAT IT EXPECTS THIRDQUARTER RESULTS TO SURPASS PROFIT REPORTED IN THE COMPARABLE PERIOD LAST YEAR OTHER BROKERAGE STOCKS LAGGED FOR THE SECOND STRAIGHT DAY MERRILL LYNCH FELL 2 1/4 TO 82 3/8 AND PAINEWEBBER SLUMPED 1 TO 28 RETAIL STOCKS RALLIED ON A COMMERCE DEPARTMENT REPORT THAT RETAIL SALES CLIMBED 04 LAST MONTH DAYTON HUDSON GAINED 1 1/2 TO 68 AND MAY DEPARTMENT STORES ADDED 1/2 TO 39 3/4 CBS JUMPED 7 1/4 TO 245 THE TELEVISION GIANT REPORTED THAT SECONDQUARTER EARNINGS BALLOONED TO 673 A SHARE FROM 446 A YEAR EARLIER RUBBERMAID ROSE 1 1/4 TO 29 1/4 THE HOUSEHOLDWARES CONCERN REPORTED SECONDQUARTER NET CLIMBED TO 32 CENTS A SHARE FROM 27 CENTS A YEAR EARLIER KNOGO TUMBLED 1 TO 9 1/4 THE MAKER OF ELECTRONIC DETECTOR SYSTEMS SAID FIRSTQUARTER NET FELL TO 17 CENTS A SHARE FROM 20 CENTS EARNINGS FOR LAST YEAR WERE RESTATED TO REFLECT THE ADOPTION OF NEW ACCOUNTING STANDARDS DEAN WITTER DISCOVER LOST GROUND FOR THE SECOND STRAIGHT DAY FALLING 1 1/4 TO 35 5/8 THE STOCK SKIDDED 1 7/8 TUESDAY ITS FIRST DAY OF TRADING AFTER SEARS SPUN OFF ITS REMAINING 80 STAKE IN THE BROKERAGE AND CREDIT CARD COMPANY 9307150017 930715 BUSINESS BRIEF GENERAL ELECTRIC CO COMPANY TO PAY 495000 TO SETTLE PENTAGON CLAIMS GENERAL ELECTRIC CO AGREED TO PAY 495000 TO SETTLE CLAIMS THAT IT OVERCHARGED THE PENTAGON IN CERTAIN CONTRACTS INVOLVING 1986 SPAREPARTS ORDERS THE US ATTORNEY'S OFFICE IN BOSTON SAID AN AUDIT AND INQUIRY BY THE DEFENSE CONTRACT AUDIT AGENCY IN 1989 SHOWED GE HAD INCORRECTLY APPLIED A FORMULA FOR CALCULATING LABOR RATES TO THE SPARE PARTS ORDERS THE PARTS WERE SUPPLIED BY GE'S STEAM TURBINE GENERATOR UNIT A GE REPRESENTATIVE SAID THE COMPANY HAD VOLUNTARILY DISCLOSED THAT IT WAS CHARGING A WRONG LABOR RATE AND OFFERED TO REFUND THE DIFFERENCE GE BASED IN FAIRFIELD CONN SETTLED THE CASE WITHOUT ADMITTING ANY LIABILITY OR WRONGDOING PAUL LEVENSON ASSISTANT US ATTORNEY IN BOSTON SAID GE DIDN'T VOLUNTARILY DISCLOSE THE INFORMATION UNTIL THE US DEPARTMENT OF JUSTICE COMMENCED THE AUDIT GE DID COOPERATE ONCE THE INVESTIGATION WAS STARTED HE SAID 9307150015 930715 SPORTS KANSAS CITY ROYALS MAKE A PITCH TO IRS BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL KANSAS CITY MO THE KANSAS CITY ROYALS ARE TRYING TO CONVINCE THE IRS THAT CHARITY BEGINS AT HOME PLATE TO ENSURE THAT THE TEAM WILL STAY HERE AFTER HE DIES ROYALS' OWNER EWING KAUFFMAN THE MARION LABORATORIES FOUNDER NOW AFFLICTED WITH BONE CANCER HAS DECIDED TO DONATE THE TEAM VALUED AT 100 MILLION OR SO TO THE GREATER KANSAS CITY COMMUNITY FOUNDATION UPON HIS DEATH BUT THAT HINGES ON THE INTERNAL REVENUE SERVICE'S ANSWER TO THIS QUESTION CAN THE DEFINITION OF CHARITY BE STRETCHED TO INCLUDE THE BUSINESS OF BASEBALL THE IRS IS EXPECTED TO RULE THIS MONTH ON THE PLAN WHICH FORCES THE AGENCY INTO THE CAULDRON OF INTERCITY COMPETITION FOR SPORTS FRANCHISES THE BASIC ISSUE IS WHETHER RETAINING A BASEBALL FRANCHISE IN KANSAS CITY IS A CHARITABLE ACTIVITY SAYS STANLEY WEINER A TAX LAWYER REPRESENTING MR KAUFFMAN AND EVEN IF THE IRS UMPIRES CALL THE PLAN SAFE IT DOESN'T GUARANTEE BIGLEAGUE BASEBALL HERE FOREVER UNDER AN AGREEMENT WITH OTHER MAJORLEAGUE OWNERS THE TEAM WILL HAVE TO BE SOLD WITHIN SIX YEARS BUT BY THAT TIME THE PLAN'S BET IS THAT THE CLUB WILL BE FINANCIALLY STABLE AND ATTRACTIVE TO A LOCAL OWNER TRYING TO QUANTIFY WHAT A PROFESSIONAL SPORTS FRANCHISE CONTRIBUTES TO A COMMUNITY IS DIFFICULT BUT NO ONE HERE DISPUTES THE ROYALS' ECONOMIC IMPACT MAYOR EMANUEL CLEAVER CLAIMS THAT THE FRANCHISE BRINGS THE CITY WORLDWIDE RECOGNITION FOSTERS COMMUNITY SPIRIT AND EVEN HELPS ATTRACT CORPORATE RELOCATIONS THE TEAM HAS DRAWN MORE THAN TWO MILLION FANS IN SEVEN OF THE PAST EIGHT YEARS MORE THAN 25 OF THEM FROM OUTSIDE A 150MILE RADIUS AND GENERATES AN ESTIMATED 200 MILLION A YEAR OF SPENDING IN THE COMMUNITY MAYOR CLEAVER SAYS WITHOUT IT HE SAYS THE CITY WOULDN'T BE BUILDING A 130 MILLION CONVENTION CENTER AND WOULDN'T HAVE ENTICED A 500EMPLOYEE UNIT OF TRANSAMERICA CORP TO RELOCATE FROM LOS ANGELES LAST MONTH BUT WHETHER ALL THAT FITS THE IDEA OF CHARITY IS ANOTHER QUESTION THE IRS ALLOWS GIFTS TO PROMOTE LITERACY EDUCATION RELIGION SCIENCE HEALTH AND CHARITY AND REQUIRES THAT THE CONTRIBUTIONS BE EXCLUSIVELY FOR PUBLIC PURPOSES MR WEINER SAYS HE CAN'T FIND ANY CLEAR PRECEDENTS BUT NOTES THE IRS DID RULE THAT AN ALLSTAR FOOTBALL GAME IN ALABAMA WAS A CHARITABLE ACTIVITY FOR THE COMMUNITY TAX LAWYERS INVOLVED IN PREVIOUS SPORTSOWNERSHIP CASES SUGGEST THE KAUFFMAN PLAN IS AKIN TO A DEVELOPER DONATING A PARK AND CITIZENS PAYING UPKEEP THE BENEFIT IS CLEAR TO THE COMMUNITY SAYS JAMES MALONE OF MCDERMOTT WILL & EMERY IN CHICAGO BUT SKEPTICS DISAGREE BASEBALL IS A BUSINESS SAYS PAUL MUCH A SPORTS FINANCIAL ANALYST IS KEEPING A SPORTS TEAM IN KANSAS CITY A CHARITABLE ENDEAVOR IT'S HARD TO COME UP WITH THAT LOGIC MR KAUFFMAN'S UNUSUAL PROPOSAL CALLS FOR HIM TO PUT UP 50 MILLION TO PAY HUGE FREEAGENT CONTRACTS ALL OF WHICH EXPIRE WITHIN THREE YEARS AND AN ADDITIONAL 10 MILLION TO COVER SOME OF THE TEAM'S CURRENT OPERATING LOSSES I THINK EVERYONE OWES SOMETHING TO SOCIETY MR KAUFFMAN SAYS THE COMMUNITY MORE THE SIZE TO FINANCIALLY SUPPORT A MINORLEAGUE TEAM THAN A MAJORLEAGUE CLUB HAS TO KICK IN ANOTHER 40 MILLION PERSONAL AND CORPORATE TRUSTS ARE ALREADY LINED UP FOR CONTRIBUTIONS BUT SUCH MONEY MUST BY LAW GO TO CHARITABLE PROJECTS THE TEAM WOULD BE RUN BY FIVE LIMITED PARTNERS DESIGNATED BY MR KAUFFMAN INCLUDING HIS SON LARRY HIS FINANCIAL ADVISER MICHAEL HERMAN AND HIS FRIEND DAVID GLASS THE BASEBALLCRAZY CHIEF EXECUTIVE OF WALMART STORES INC ALL FIVE WOULD HAVE TO PAY AN UNDISCLOSED AMOUNT SIGNIFICANT MR HERMAN SAYS TO BUY CLASS A VOTING STOCK THE COMMUNITY FOUNDATION WOULD RECEIVE CLASS B NONVOTING STOCK AND WHEN THE ROYALS ARE SOLD THE CHARITIES THAT CAME UP WITH THE 50 MILLION WOULD GET THEIR FUNDS BACK AND THE FOUNDATION WOULD KEEP MOST OF THE REMAINING PROCEEDS BASEBALL OWNERS WHO HAVE TENTATIVELY APPROVED THE PLAN DREW A PLEDGE FROM MR KAUFFMAN THAT IF THE ROYALS AREN'T SOLD TO A LOCAL OWNER WITHIN SIX YEARS BIDDING FOR THE FRANCHISE WILL BE OPENED NATIONALLY BUT OUTSIDE BIDDERS WOULD HAVE TO OVERCOME SEVERAL OBSTACLES TO RELOCATION INCLUDING 23 YEARS REMAINING ON A STADIUM LEASE CRAFTED TO THWART MOVING AND THE REQUIRED APPROVAL OF BASEBALL OWNERS TO MAKE THE TEAM AFFORDABLE TO A LOCAL BUYER MR KAUFFMAN'S PLAN CALLS FOR ELIMINATING OPERATING LOSSES BY SHRINKING THE PAYROLL TO 30 MILLION FROM THE CURRENT 38 MILLION THAT WOULD MEAN RETURNING TO A STRATEGY OF DEVELOPING YOUNG TALENT BUT OTHER SMALLCITY CLUBS HAVE FOUND THAT STRATEGY LEADS THEM INTO A VICIOUS CIRCLE LOSING LOWERS THE TAKE AT THE TURNSTILE WHICH PUTS EVEN MORE PRESSURE ON A TEAM'S FINANCES WE NEED TO BE COMPETITIVE SAYS HERK ROBINSON THE ROYALS' GENERAL MANAGER IF WE DON'T WIN PEOPLE DON'T COME TO THE BALLPARK IN SMALL MARKETS SUCH AS KANSAS CITY ANALYSTS SAY TEAMS ARE FINDING IT INCREASINGLY DIFFICULT TO SURVIVE WITHOUT A DEEPPOCKETS OWNER LIKE MR KAUFFMAN WHO SAYS HIS PHILANTHROPIC FOUNDATION WILL BE VALUED AT ABOUT 1 BILLION UPON HIS DEATH UNDER A NEW CONTRACT NETWORK TELEVISION WILL PAY EACH TEAM 8 MILLION LESS A YEAR THAN UNDER THE CURRENT AGREEMENT AND UNLIKE IN THE NFL BASEBALL'S LOCAL BROADCAST REVENUES AREN'T SHARED THAT HAS CREATED A WIDE GAP BETWEEN THE HAVES AND HAVENOTS OF BASEBALL THE KAUFFMAN SUCCESSION PLAN IS CLEVER SAYS MICHAEL MEGNA AN ANALYST AT AMERICAN APPRAISAL ASSOCIATION INC WHO HAS STUDIED THE PROPOSAL AND DOUBTS IT WILL SUCCEED IT'S DESIGNED TO MAXIMIZE THE OPPORTUNITY TO RETAIN THE KANSAS CITY ROYALS IN KANSAS CITY I JUST DON'T THINK THERE ARE THAT MANY KAUFFMANS WALKING THE FACE OF THE EARTH ROYALS OFFICIALS SAY THE SUCCESS OF MR KAUFFMAN'S PLAN DEPENDS ON BASEBALL GETTING ITS SCRAMBLED FINANCIAL HOUSE IN ORDER IN THE NEXT THREE YEARS AND MR K AS HE IS KNOWN AROUND THE CLUBHOUSE BELIEVES A LOCAL BUYER WILL BE FOUND AN OPINION HE SAYS IS BASED HALF ON SPECULATION AND HALF ON DISCUSSIONS WITH POTENTIAL BUYERS FOR NOW GENERAL MANAGER ROBINSON WORKS THE PHONES TRYING TO FIND ANOTHER PITCHER WHO MIGHT HELP KANSAS CITY IN MR KAUFFMAN'S WORDS GET ONE MORE WORLD SERIES WINNER BEFORE I KICK THE BUCKET 9307150014 930715 BUSINESS BRIEF FIBREBOARD CORP SECONDQUARTER EARNINGS AT RESORT CONCERN ROSE 26 FIBREBOARD CORP SAID SECONDQUARTER PROFIT ROSE 26 PARTLY REFLECTING INCREASED COST CONTROLS AND AN EXTENDED SKIING SEASON BECAUSE OF HEAVY SNOWFALL AT ONE OF ITS LAKE TAHOE RESORTS THE WOOD/INSULATION AND RESORTS CONCERN HAD NET INCOME OF 34 MILLION OR 77 CENTS A SHARE COMPARED WITH 27 MILLION OR 66 CENTS A SHARE A YEAR EARLIER SALES ROSE 83 TO 65 MILLION FROM 60 MILLION A YEAR AGO FOR THE SIX MONTHS CONCORD CALIFBASED FIBREBOARD SAID NET INCOME ROSE 20 TO 98 MILLION OR 223 A SHARE ON SALES OF 1399 MILLION FROM 82 MILLION OR 201 A SHARE ON SALES OF 1308 MILLION A YEAR AGO 9307150013 930715 REVIEW & OUTLOOK EDITORIAL RATE MAN'S BURDEN HERE'S ANOTHER TALE THAT HELPS EXPLAIN WHY BILL CLINTON'S NEW TAXES COULD GET A CHILLY RECEPTION FROM A PUBLIC THAT SOMEHOW FEELS IT IS PAYING ENOUGH FOR GOVERNMENT BOSTON HARBOR YOU MAY RECALL FIGURED IN THE PRESIDENTIAL RACE BACK IN 1988 WELL THE MASSACHUSETTS CLEANUP CHALLENGE IS NOW INDICATIVE OF THE MASSIVE COSTS INVOLVED IN MEETING FEDERAL ANTIPOLLUTION MANDATES IMPOSED ON OTHER LEVELS OF GOVERNMENT IN EASTERN MASSACHUSETTS THIS MEANS WATER AND SEWER BILLS HAVE TRIPLED SINCE 1986 AND ARE LIKELY TO DOUBLE AGAIN ADDING 500 TO ANNUAL HOMEOWNER BILLS BY 2000 THERE'S REASON TO THINK THEY WERE TOO LOW TO BEGIN WITH UNTREATED WASTE WAS MUCKING UP THE FAMOUS PORT AFTER ALL BUT SIMILAR INCREASES ARE BEING BORNE BY RATEPAYERS ACROSS THE COUNTRY THIS IS TRUE FOR OTHER UTILITIES AS WELL ESPECIALLY THOSE INVOLVING SOLIDWASTE DISPOSAL THE RESULT IS A HUGE AND OFTEN HIDDEN TAX INCREASE IF THE EXPENSE IS MET DIRECTLY OR AN ENCROACHMENT ON OTHER CATEGORIES OF PUBLIC BUDGETS EITHER WAY FEDERAL ENVIRONMENTAL LEGISLATION AS INTERPRETED BY THE COURTS HAS CHANGED THE FISCAL FACE OF AMERICA ALL THE CLEAN THIS AND CLEAN THAT ACTS OF THE PAST 25 YEARS ARE HITTING HOME NOW ARGUABLY A LOT OF THIS SPENDING GOES FOR DESIRED INFRASTRUCTURE BETTER TREATMENT PLANTS SEALANT AT DUMPS BUT CITY & STATE A TRADE JOURNAL REPORTS THE PLAINT OF PHILADELPHIA MAYOR EDWARD RENDELL THAT THE ENVIRONMENTAL PROTECTION AGENCY DEMANDS 500 MILLION IN WASTEWATER WORK TO IMPROVE THE OXYGEN LEVELS FOR FISH IN THE DELAWARE WATER BASIN NEW YORK CITY FACES A 46 BILLION TAB OVER A DECADE FOR WATER PROJECTS NEW STANDARDS FOR DRINKABILITY FROM THE TAP BY 1995 PLACE ADDED RESPONSIBILITIES ON THE STATES MEANWHILE AND WILL LEAVE THEM HUNDREDS OF MILLIONS OF DOLLARS SHORT ACCORDING TO THE AMERICAN PUBLIC WORKS ASSOCIATION GARBAGEDISPOSAL COSTS ESPECIALLY WHERE RECYCLING CAMPAIGNS ARE INCLUDED HAVE SHOT UP IN LIKE FASHION SOMETIMES STATE AS WELL AS FEDERAL MANDATES BOOST LOCAL BILLS IN TACOMA WASH FOR INSTANCE GETTING RID OF WHAT'S COLLECTED IS NOW 42 OF SANITATION COSTS UP FROM 17 IN 1985 SLUDGE IS ANOTHER EXPENSIVE ELEMENT OF THE SOLIDWASTE STORY IN CONSTANT DOLLARS TOTAL LANDPOLLUTION CONTROL COSTS INCLUDING HAZARDOUS WASTE UNDERGROUND STORAGE TANKS AND SUPERFUND WILL HAVE JUMPED TO 46 BILLION IN 2000 FROM 13 BILLION IN 1980 ACCORDING TO EPA LOCAL GOVERNMENT EXPENDITURES ALONE TO KEEP UP WITH AIR WATER AND LAND STANDARDS SET BY WASHINGTON WILL HAVE RISEN IN 1988 DOLLARS TO ALMOST 54 BILLION ANNUALLY BY 2000 THE EPA PROJECTS FROM 26 BILLION IN 1981 THAT'S ABOUT 200 FOR EACH AMERICAN THE BURDEN FOR THE WHOLE ECONOMY PUBLIC AND PRIVATE WILL HAVE TRIPLED AS A PERCENTAGE OF GNP BETWEEN 1972 AND THE END OF THE CENTURY MUCH OF THIS EXPENDITURE IS TO ATTAIN LEVELS OF PURITY THAT THE ELECTORATE HAS EMBRACED WE WONDER THOUGH IF THE NATION HAS BEEN MISLED ABOUT THE NEED FOR ALL OF THAT AND CERTAINLY WE'D POINT TO INSTANCES IN WHICH THE MANDATED TECHNOLOGY WAS AN INEFFICIENT MEANS TO REACH THE GOAL BUT IF IN FACT THE GAINS ARE SO PALPABLE PEOPLE OUGHT TO HAVE MORE SATISFACTION ABOUT WHERE THEIR MONEY HAS GONE BOTH AS TAXPAYERS AND CONSUMERS THIS YEAR'S SCHEDULED CONGRESSIONAL RECONSIDERATION OF THE CLEAN WATER ACT MAKES IT ALL THE MORE IMPORTANT THAT THESE FACTS SOAK IN AT THE VERY LEAST VOTERS DESERVE TO KNOW JUST HOW MUCH ENVIRONMENTAL MANDATES ARE COSTING THEM AND TO UNDERSTAND THAT THIS IS ONE REASON THEIR LOCAL GOVERNMENTS CAN'T SEEM TO GET THEIR TRADITIONAL JOBS DONE WITHOUT ALWAYS NEEDING ANOTHER REVENUE FIX IF NOTHING IS DONE TO CHANGE THAT SYNDROME BOSTON HARBOR MAY NOT HAVE SEEN ITS LAST TEA PARTY 9307150012 930715 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 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 309 30 TO 59 DAYS 311 60 TO 89 DAYS 313 90 TO 119 DAYS 315 120 TO 149 DAYS 318 150 TO 179 DAYS 325 180 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 316 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 263 TWO MONTHS 268 THREE MONTHS 288 SIX MONTHS 307 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 330 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 307 60 DAYS 308 90 DAYS 313 120 DAYS 315 150 DAYS 321 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JULY 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 690 60 DAYS 697 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 685 60 DAYS 695 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9307150011 930715 BUSINESS BRIEF NOVELLUS SYSTEMS INC FIRM SAYS 2NDQUARTER NET WAS BETTER THAN EXPECTED NOVELLUS SYSTEMS INC CITING RECORD ORDERS FOR ITS SEMICONDUCTORMAKING EQUIPMENT SAID IT WILL REPORT BETTERTHANEXPECTED SECONDQUARTER NET INCOME ON RECORD REVENUE NOVELLUS SAN JOSE CALIF EXPECTS TO REPORT NET INCOME OF 33 MILLION TO 36 MILLION OR 24 CENTS TO 25 CENTS A SHARE WILLIAM WALL CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW ANALYSTS EXPECTED THE COMPANY TO REPORT NET INCOME OF 14 CENTS TO 22 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN THE YEARAGO QUARTER NOVELLUS HURT BY A DROPOFF IN SALES TO JAPAN REPORTED NET INCOME OF 117000 OR ONE CENT A SHARE ON 145 MILLION IN REVENUE THE EARNINGS CAME IN BETTER THAN EXPECTED BECAUSE SECONDQUARTER SALES WERE STRONG SAID MR WALL HE SAID NOVELLUS WILL REPORT REVENUE OF 25 MILLION TO 255 MILLION FOR THE QUARTER 9307150010 930715 MARKETING & MEDIA BET ACQUIRES CONTROL OF AVALON ENTERING PAYPERVIEW MARKET NEW YORK BLACK ENTERTAINMENT TELEVISION INC TOOK A MAJOR STEP INTO THE PAYPERVIEW MARKET BY ACQUIRING CONTROL OF A SERVICE THAT PROVIDES ACTION FILMS TO FIVE MILLION HOMES THE COMPANY WHOSE BET CABLE CHANNEL PROVIDES BLACKORIENTED PROGRAMMING TO 32 MILLION CABLE HOMES ACQUIRED 80 OF AVALON PICTURES INC FOR 13 MILLION PLUS THE ASSUMPTION OF 48 MILLION IN DEBT AVALON'S ACTION PAYPERVIEW CHANNEL WILL PROVIDE A STEPPING STONE INTO THE DEVELOPING VIDEOONDEMAND MARKET SAID ALAN H NICHOLS CHIEF FINANCIAL OFFICER AT BET HOLDINGS INC THE CABLE CHANNEL'S PARENT WITH EVERYBODY TALKING ABOUT VIDEO ON DEMAND THE TRANSACTION IS A WAY TO EXPAND WITH ALL OF ELECTRONIC MARKETPLACE MEDIA MR NICHOLS SAID ABOUT 65 OF HOUSEHOLDS WITH ACCESS TO ACTION ARE IN CABLE SYSTEMS THAT CARRY THE BET CHANNEL AND THE PAYPERVIEW SERVICE GETS ABOUT 5 OF THE MARKET FOR PAY MOVIES ACCORDING TO INDUSTRY ESTIMATES PAUL KAGAN ASSOCIATES A RESEARCH FIRM SAYS THE PAYPERVIEW MARKET TOTALED 378 MILLION LAST YEAR WITH MOVIES PROVIDING 184 MILLION OF THE TOTAL BET PLANS TO STEP UP MARKETING FOR ACTION WHICH HAS HAD MINIMAL PROMOTION SAID CURTIS N SYMONDS THE NEWLY NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF BET ACTIONPAYPERVIEW BET ALSO PLANS TO SHIFT ACTION'S PROGRAMMING TO INCLUDE MORE FILMS BY BLACK ARTISTS WE'D LIKE ACTION TO BE A PLACE FOR THE NEXT GENERATION OF SPIKE LEES AND JOHN SINGLETONS TO SHOW THEIR MOVIES MR NICHOLS SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BET HOLDINGS' SHARES CLOSED AT 1625 UNCHANGED 9307150009 930715 TECHNOLOGY AMERICAN CYANAMID AND MEDIMMUNE INC REACH PACT ON DRUGS STAFF REPORTER OF THE WALL STREET JOURNAL GAITHERSBURG MD MEDIMMUNE INC SAID IT SIGNED A LETTER OF INTENT WITH AMERICAN CYANAMID CO OF WAYNE NJ TO DEVELOP AND MARKET JOINTLY THREE DRUGS TO TREAT SEVERE BRONCHITIS AND PNEUMONIA IN CHILDREN AND TO COMARKET A FOURTH ANTIINFECTION DRUG MEDIMMUNE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAYNE T HOCKMEYER SAID THE COMPANY WILL RECEIVE 30 MILLION FROM AMERICAN CYANAMID UNDER THE AGREEMENT WHICH COVERS US MARKETING RIGHTS ONLY MEDIMMUNE'S SHARES JUMPED 325 OR 17 TO 22 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY WHILE AMERICAN CYANAMID SHARES ROSE 875 CENTS TO 5450 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE ALLIANCE COULD BE A SIGNIFICANT AID TO MEDIMMUNE'S SALES OF ITS NEW DRUG RESPIVIR WHICH IS UNDER REVIEW FOR MARKETING APPROVAL BY THE FOOD AND DRUG ADMINISTRATION AMERICAN CYANAMID THROUGH ITS LEDERLE DIVISIONS HAS MORE THAN 1000 SALES REPRESENTATIVES WHILE MEDIMMUNE HAS 15 RESPIVIR HAS BEEN SHOWN IN CLINICAL TRIALS TO BE EFFECTIVE IN PREVENTING LUNG INFECTIONS IN HIGHRISK INFANTS AND CHILDREN WITH RESPIRATORY SYNCYTIAL VIRUS SUCH INFECTIONS CAUSE MORE THAN 91000 HOSPITALIZATIONS AND 4500 DEATHS IN THE US EACH YEAR THE ALLIANCE WOULD ALSO COVER ZOSYN AN ANTIINFECTIVE DEVELOPED BY CYANAMID'S LEDERLE LABORATORIES DIVISION FOR HOSPITAL USE IN TREATING VARIOUS INFECTIONS MR HOCKMEYER SAID THAT UNDER THE PROPOSED ALLIANCE MEDIMMUNE WOULD RETAIN PRIMARY CONTROL OVER THE DEVELOPMENT AND MARKETING OF RESPIVIR AND ANOTHER RSV PRODUCT IN THE US IT ALSO WOULD BOOK SALES FOR THE TWO PRODUCTS AMERICAN CYANAMID WOULD BOOK SALES FOR ZOSYN AND AN RSV VACCINE 9307150008 930715 WHO'S NEWS PETRIE'S BOARD TO VOTE ON PRESIDENT CEO CHIEF OF OPERATIONS SECAUCUS NJ CONTINUING TO SHUFFLE ITS EXECUTIVE SUITE PETRIE STORES CORP SAID ITS BOARD WOULD VOTE ON A NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER AND A CHIEF OPERATING OFFICER MR PETRIE 90 YEARS OLD HAS BEEN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THE WOMEN'S SPECIALTY RETAILER SINCE THE COMPANY BEGAN OPERATION IN 1932 BUT IN RECENT YEARS HE HAS BECOME LESS INVOLVED IN DAILY OPERATIONS WHILE HE WILL REMAIN CHAIRMAN MR PETRIE SAID HE WOULD RECOMMEND ALLAN LAUFGRABEN AS PRESIDENT AND CHIEF EXECUTIVE AND PETER A LEFT AS CHIEF OPERATING OFFICER MR LAUFGRABEN 54 WILL CONTINUE AS VICE CHAIRMAN AND MR LEFT 43 WILL KEEP HIS TITLES OF VICE CHAIRMAN CHIEF FINANCIAL OFFICER AND SECRETARY SINCE LATE MAY THE RELATIVELY YOUNGER MESSRS LAUFGRABEN AND LEFT HAVE BEEN CONDUCTING MOST OF THE COMPANY'S OPERATIONS AND THEIR ASCENSION TO THE TOP PLEASED ANALYSTS THIS IS DEFINITELY A STEP IN THE RIGHT DIRECTION SAID RICHARD FOOTE AN ANALYST WITH ARGUS RESEARCH THE OLD GUARD HAS BEEN RUNNING THIS FOR QUITE AWHILE AND ANY NEW EYES ON THE SITUATION WILL HELP MR LEFT SAID HE AND MR LAUFGRABEN CONTINUE TO ASSESS THE COMPANY'S BUSINESS WITH AN EYE TOWARD CUTTING COSTS AND INCREASING PROFITABILITY THE REVIEW PROCESS IS EXPECTED TO BE COMPLETED WITHIN THE NEXT COUPLE OF MONTHS PETRIE STORES ATTRACTS SOME INVESTOR INTEREST BECAUSE OF ITS LARGE HOLDING OF 404 MILLION SHARES IN TOYS R US INC CURRENTLY VALUED AT ABOUT 14 BILLION IN THE MOST RECENT FISCAL YEAR PETRIE STORES REPORTED NET INCOME OF 148 MILLION OR 32 CENTS A SHARE DOWN 8 FROM 16 MILLION OR 34 CENTS A SHARE IN THE YEARAGO PERIOD THE RETAILER'S REVENUE ROSE 62 TO 14 BILLION 9307150007 930715 INSLAW REBUTS US REPORT ON ITS SOFTWARE THEFT CLAIM WASHINGTON A GOVERNMENT REPORT CLEARING THE JUSTICE DEPARTMENT OF ALLEGATIONS THAT IT STOLE A COMPANY'S SOFTWARE IS FILLED WITH ERRORS AND OMISSIONS ACCORDING TO THE COMPANY REPRESENTATIVES OF INSLAW INC RELEASED A 90PAGE REBUTTAL TO A REPORT BY FORMER FEDERAL JUDGE NICHOLAS BUA WHO FOUND NO CREDIBLE EVIDENCE THAT REAGAN ADMINISTRATION OFFICIALS STOLE CASE MANAGEMENT SOFTWARE JUDGE BUA WHOSE REPORT WAS RELEASED LAST MONTH WAS APPOINTED BY THE BUSH ADMINISTRATION TO EXAMINE THE CHARGES IN ITS REBUTTAL INSLAW SAID JUDGE BUA TRIED TO BROKER A 25 MILLION SETTLEMENT BETWEEN INSLAW AND THE JUSTICE DEPARTMENT INSLAW WHICH REJECTED THE SETTLEMENT EFFORTS SAID JUDGE BUA'S ATTEMPTS SUGGESTED HE WAS AWARE THAT THE DEPARTMENT MAY NOT HAVE BEEN AS BLAMELESS AS HIS REPORT INDICATED JUDGE BUA COULDN'T BE REACHED TO COMMENT THE CLINTON ADMINISTRATION HAS ASKED INSLAW AND LAWMAKERS TO RESPOND TO JUDGE BUA'S REPORT BY AUG 1 IN ITS REBUTTAL INSLAW SAID THE REPORT REVEALS NUMEROUS FAILURES TO PURSUE TESTIMONY OR DOCUMENTARY EVIDENCE THAT COULD HAVE CONTRADICTED ITS CONCLUSIONS AND CORROBORATED INSLAW'S ALLEGATIONS INSLAW THE WASHINGTON SOFTWARE COMPANY THAT MADE THE CASE MANAGEMENT SOFTWARE USED IN US ATTORNEYS' OFFICES CLAIMED THAT DEPARTMENT OFFICIALS WERE INVOLVED IN A CONSPIRACY TO STEAL THE SOFTWARE AND SELL IT TO THE GOVERNMENT THE DEPARTMENT HAS DENIED THE CHARGES 9307150006 930715 BUSINESS BRIEF BOWATER INC PAPER PRODUCTS MAKER CUTS NEWSPRINT CAPACITY BY 16 CITING DEPRESSED MARKET CONDITIONS BOWATER INC SAID IT CUT ANNUAL NEWSPRINT CAPACITY BY 264500 TONS OR 16 TO 14 MILLION TONS THE DARIEN CONN PAPER PRODUCTS COMPANY SAID IT SHUT ABOUT 86500 TONS OF CAPACITY AND SHIFTED 178000 TONS TO OTHER PAPER GRADES THE COMPANY ADDED THAT DEMAND FOR NEWSPRINT HAS IMPROVED BUT NOT ENOUGH TO EASE OVERSUPPLY IN THE MARKET PRICES ARE SO BAD THAT IT JUST DOESN'T MAKE SENSE FOR US TO KEEP PRODUCING AT THAT CAPACITY A BOWATER SPOKESMAN SAID ESPECIALLY WHEN WE HAVE THE OPPORTUNITY TO SHIFT TO HIGHERMARGIN GRADES THE SPOKESMAN SAID THE SIZE OF ITS WORK FORCE WAS NOT AFFECTED 9307150005 930715 COMMODITIES OIL PRICES DECLINE MORE THAN 60 CENTS A BARREL ON HINTS OF BREAKTHROUGH IN UN AND IRAQI TALKS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM PRICES FELL MORE THAN 60 CENTS A BARREL ON HINTS OF A BREAKTHROUGH IN TALKS BETWEEN THE UNITED NATIONS AND IRAQ OVER A ONETIME SALE OF IRAQI OIL IN HEAVY US FUTURES TRADING CRUDE OIL FOR AUGUST DELIVERY PLUNGED 64 CENTS A BARREL TO SETTLE AT 1749 SEPTEMBER CRUDE WAS DOWN EVEN MORE BY 69 CENTS A BARREL TO 1769 THESE WERE THE LOWEST SETTLEMENT PRICES FOR CRUDE FUTURES CONTRACTS ON THE NEW YORK MERCANTILE EXCHANGE IN THREE YEARSSINCE BEFORE THE UN SANCTIONS WERE APPLIED AGAINST IRAQ IN AUGUST 1990 AFTER ITS INVASION OF KUWAIT OIL PRICES ALSO FELL STEEPLY ELSEWHERE ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES WERE 30 CENTS TO 58 CENTS A BARREL LOWER AT THE CLOSE OF TRADING THE IRAQUN TALKS WENT INTO THEIR SIXTH DAY YESTERDAY AND CONTINUED AFTER THE MARKETS HAD CLOSED BUT THERE WERE REPORTS THE TWO SIDES WERE NEAR A DRAFT AGREEMENT UNDER WHICH IRAQ WOULD BE ALLOWED TO FOLLOW THROUGH ON THE PREVIOUSLY PROPOSED SALE OF 16 BILLION IN OIL FOR HUMANITARIAN PURPOSES INCLUDING THE PURCHASE OF FOOD AND MEDICINES UN DIPLOMATIC SOURCES ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT SAID THE NEGOTIATORS WERE PUTTING THE FINISHING TOUCHES ON A DOCUMENT WHICH THEY WOULD THEN GIVE TO THE UN SECURITY COUNCIL A FORMAL UN ANNOUNCEMENT ON THE ACCORD COULD COME WITHIN A COUPLE OF DAYS THE SOURCES SAID THAT ADDED DOWNWARD PRESSURES ON OIL PRICES ALREADY WEAKENED BY SUCH BEARISH FACTORS AS THE LATE TUESDAY INDUSTRY REPORT WHICH SHOWED LARGE INCREASES IN US OIL INVENTORIES AND CONFIRMED HIGH OPERATING LEVELS OF US REFINERIES ALSO THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES YESTERDAY ANNOUNCED THAT IT HAD REDUCED EARLIER ESTIMATES OF ANTICIPATED DEMAND FOR ITS OIL FOR THIS YEAR STILL ANY DRAFT AGREEMENT BY THE IRAQUN NEGOTIATORS IN NEW YORK WOULD HAVE SEVERAL OTHER HURDLES TO CLEAR IT WOULD HAVE TO BE ENDORSED BY THE UN SECRETARYGENERAL BOUTROS BOUTROSGHALI AND APPROVED BY THE 15MEMBER UN SECURITY COUNCIL WHICH LIKELY WOULD BLOCK ANY IRAQI OIL SALE THAT DIDN'T STICK TO THE GUIDELINES PREVIOUSLY SET BY THE GROUP ALSO ANY ACCORD REACHED BY THE NEGOTIATORS WOULD HAVE TO BE ACCEPTED BY THE IRAQI GOVERNMENT IN BAGHDAD AND IRAQI OIL COULDN'T BE EXPORTED UNTIL UNAPPROVED MONITORING MECHANISMS WERE IN PLACE THERE WERE SOME HINTS THAT RESULTS OF THE OIL TALKS WOULDN'T BE KNOWN UNTIL AFTER A VISIT TO BAGHDAD BY THE UN SPECIAL COMMISSION CHAIRMAN ROLF EKEUS TO DISCUSS A UNIRAQ DISPUTE OVER EFFORTS TO INSTALL CAMERAS AT IRAQI MISSILE TEST SITES BUT UN OFFICIALS HAVE INSISTED THAT NEGOTIATIONS OVER THE ONETIME EMERGENCY SALE OF IRAQI OIL ARE SEPARATE FROM ANY DISCUSSIONS REGARDING THE OVERALL LIFTING OF THE EMBARGO AND IRAQ'S COMPLIANCE ON WEAPONS STILL THERE IS CONCERN IN THE INDUSTRY THAT ONCE THE DOOR TO RENEWED IRAQI OIL EXPORTS IS OPENED IT WILL NEVER BE CLOSED ALSO THERE IS FEAR THAT IRAQ WILL DISCOUNT PRICES SHARPLY TO SELL ITS CRUDE ONCE IT REENTERS THE WORLD OIL MARKET IF YOU HAVE BEEN OUT OF THE BUSINESS FOR THREE YEARS HOW ELSE ARE YOU GOING TO GET YOUR CUSTOMERS BACK ASKED PETER BEUTEL AN ENERGY FUTURES ANALYST WITH BRODY WHITE & CO IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS TAME INFLATION FIGURES SENT GOLD LOWER IN MODERATE TRADING YESTERDAY TRADERS SAID THE ACTIVE AUGUST GOLD FUTURES CONTRACT SHED 310 TO SETTLE AT 39140 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE TRADERS SAID THAT GOLD A HEDGE AGAINST INFLATION IS NEVERTHELESS ENJOYING SOLID SUPPORT AT LOWER PRICES BECAUSE OF A WIDESPREAD PERCEPTION THAT DEMAND FOR THE METAL EXCEEDS SUPPLY IN THE WORLD MARKET THEY CAUTION HOWEVER THAT ANY FURTHER APPRECIATION IN THE GOLD PRICE IS LIKELY TO BE SLOW IN COMING IN THE ABSENCE OF A MAJOR THREAT FROM INFLATION MOST ECONOMISTS NOW BELIEVE THAT INFLATIONARY INDICATORS DURING MUCH OF THIS YEAR'S FIRST HALF WERE WEATHERRELATED ABERRATIONS THOSE INFLATIONARY FEARS HAD HELPED GOLD RALLY FROM SEVENYEAR LOWS IN MIDMARCH THE MARKET PERCEIVED A BIT OF SHORTTERM RELIEF FROM INFLATIONARY FEARS AND BID GOLD LOWER SAID GERARD POLLINO A SENIOR TRADER WITH MILLENIUM FUTURES IN NEW YORK WITH THE ABSENCE OF INFLATION I THINK WE'RE GOING TO SEE THE MARKET TRADE IN A NARROW RANGE FOR NOW THE METAL IS STAYING RELATIVELY STEADY TRADERS SAID THEY HAVE DETECTED SOME SELLING OF GOLD BY PRODUCERS AT LEVELS ABOVE 395 AN OUNCE IN OTHER PRECIOUS METALS ACTIVITY YESTERDAY SILVER FUTURES ALSO ENDED LOWER ON THE COMEX SILVER FOR SEPTEMBER DELIVERY RETREATED 105 CENTS TO 496 AN OUNCE PLATINUM FUTURES ALSO DROPPED ON NEW YORK'S MERCANTILE EXCHANGE PLATINUM FOR OCTOBER DELIVERY SKID 230 TO 40540 AN OUNCE WHILE PALLADIUM FOR SEPTEMBER EDGED UP FIVE CENTS TO 13630 AN OUNCE GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES ROSE ON NEWS THAT SOYBEAN CRUSHING PLANTS WHERE WHOLE SOYBEANS ARE REDUCED TO THEIR BYPRODUCTS OF SOYBEAN OIL AND MEAL ARE CLOSING BECAUSE OF THE FLOODING IN THE WESTERN CORN BELT FOUR PLANTS IN IOWA ARE SAID TO HAVE CLOSEDIN SOME CASES BECAUSE OF STANDING WATER IN THE PLANTS AND IN OTHER CASES BECAUSE OF PROBLEMS THE FLOODING HAS CREATED IN SHIPPING SOYBEANS TO THE PLANTS SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO IT IS POSSIBLE HE SAID THAT AT LEAST FOUR MORE PLANTS IN THE WESTERN CORN BELT MAY CLOSE SOON CASH MARKETS FOR SOYBEANS AND SOYBEAN MEAL WERE STRONG YESTERDAY AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY ROSE 10 CENTS TO 711 A BUSHEL WHILE CORN FOR DECEMBER DELIVERY WAS UP THREE CENTS TO 24750 A BUSHEL 9307150004 930715 LETTERS TO THE EDITOR HAAGENDAZS SALES IN YOUR MAY 25 ARTICLE ON ICE CREAM THE CONCLUSION THAT HAAGENDAZS SALES ARE DECLINING WAS REACHED BY EXCLUDING OUR NEW ICE CREAM EXTRAAS FLAVORS INTRODUCED LAST SUMMER EXCLUDING THEM FROM YOUR TALLY IS RATHER LIKE DISCUSSING SALES OF BOEING AIRCRAFT AND OMITTING THE 747 WHEN EXTRAAS ARE INCLUDED IN TOTAL HAAGENDAZS SALES FOR THE 12 MONTHS ENDING APRIL 18 IT SHOWS 3 GROWTH FOR HAAGENDAZS THE ARTICLE ALSO EXCLUDED THE FROZEN NOVELTIES SEGMENT WHICH FOR HAAGENDAZS IS A 100 MILLION BUSINESS NEARLY TWOTHIRDS OF WHICH IS IN SUPERMARKETS HAAGENDAZS ICE CREAM AND FROZEN YOGURT STICK BARS ARE A VITAL COMPONENT OF OUR BRAND'S PRESENCE AND PRODUCT PORTFOLIO 9307150003 930715 PERHAPS THEY COULD LET WORKERS SEND 8 CENTS DIRECTLY TO THE FUND BY CATHERINE BOLGAR STAFF REPORTER OF THE WALL STREET JOURNAL A TAX BITE CAN STING EVEN WHEN IT'S ONLY MOSQUITOSIZE IN NEW JERSEY A 1AWORKER TAX HAS SMALL BUSINESSES BUZZING THE STATE BILLS ANY COMPANY THAT HAS EMPLOYEES REGISTERED FOR UNEMPLOYMENT AND DISABILITY INSURANCE AND WORKER'S COMPENSATION WHILE A COMPANY WITH 100 WORKERS GETS A BILL FOR 100 THE STATE'S 30000 ONEPERSON OPERATIONS ARE BILLED 1 EACH AND IT COSTS THE STATE 92 CENTS TO PROCESS EACH CHECK I WAS SURPRISED BUT NOT TOO SURPRISED SAYS JIM HALLOCK WHO DOES ARCHITECTURAL WOODWORK AND ANTIQUE RESTORATIONS IN MONTCLAIR IT'S ALL PART OF THE NEEDLESS COMPLEXITY IN RUNNING A SMALL BUSINESS THE MONEY 5 MILLION A YEAR GOES INTO THE STATE'S CATASTROPHIC ILLNESS IN CHILDREN RELIEF FUND ESTABLISHED IN 1988 TO HELP FAMILIES COPE WITH THE COSTS OF ILLNESSES IN CHILDREN NOT COVERED BY MEDICAL INSURANCE FOR LABOR COMMISSIONER RAYMOND BRAMUCCI HOWEVER THE 1 TAX BILLS SHOW THAT EVEN WHEN YOU DO GOOD THINGS YOU PUT PROCEDURES IN PLACE THAT ALMOST CHOKE THE PURPOSE SO HE IS SEEKING CHANGES IN HOW THE MONEY IS COLLECTED THE DILEMMA IS THAT THE CAUSE THE FUND HOW COULD YOU QUESTION IT BUT HE SAYS IN THE PROCESS OF GETTING THE REVENUES I DIDN'T WANT PEOPLE TO THINK WE WERE A BUNCH OF IDIOTS MR BRAMUCCI SAYS HIS AGENCY HAS RECEIVED DOZENS OF COMPLAINTS ABOUT THE 1 TAX BILLS HOWEVER REPUBLICAN STATE SEN DONALD DIFRANCESCO WHO SPONSORED THE LEGISLATION CREATING THE FUND AND THE TAX SAYS HE HASN'T RECEIVED ANY COMPLAINTS I DON'T THINK THEY SHOULD BE SENDING OUT A BILL FOR 1 ON THE OTHER HAND I DON'T THINK ANYONE SHOULD BE EXEMPT HE SAYS JOE VIATIANA PROPRIETOR OF VECTOR BOOKS IN BAYONNE SAYS AT LEAST IT'S GEARED FOR A SPECIFIC PURPOSE WITH A PRIVATE CHARITY YOU DON'T KNOW WHERE IT GOES BUT HE ADDS 1 DOESN'T SEEM WORTH IT IF IT TAKES 92 CENTS TO PROCESS IT THE 92 CENTS COVERS POSTAGE PERSONNEL PRINTING TELEPHONE DATA PROCESSING AND OTHER EQUIPMENT HOBOKEN CABINETMAKER THOMAS W NEWMAN WOULDN'T MIND IF OTHER TAXES WERE ON THE SCALE OF THIS ONE HE SAYS IF A BILL COMES FOR A BUCK FROM THE GOVERNMENT I'M RELIEVED I DON'T EVEN READ IT I JUST PAY THE DOLLAR I'M JUST HAPPY WHEN I ONLY OWE THEM A DOLLAR 9307150002 930715 OTC FOCUS INDEX SOARS 402 TO RECORD OF 71249 AIDED BY SMALLER STOCKS TELECOM ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET SOARED TO A RECORD LEVEL WITH BROADBASED SUPPORT FROM SMALLER STOCKS AND TELECOMMUNICATIONS ISSUES THE NASDAQ COMPOSITE INDEX LEAPED 402 OR 057 TO 71249 SMASHING ITS PREVIOUS RECORD OF 70885 REACHED IN FEBRUARY ADVANCING ISSUES OUTNUMBERED DECLINERS 1517 TO 1216 ON TOTAL VOLUME OF 2905 MILLION SHARES UP FROM TUESDAY'S 2565 MILLION THE MARKET WAS STRONG ACROSSTHEBOARD SAID EE BUZZY GEDULD PRESIDENT OF HERZOG HEINE GEDULD BUYERS WERE COMING IN FROM EVERYWHERE TO GRAB THESE STOCKS INCLUDING BIG INSTITUTIONS ADDING TO POSITIONS AND SHORTS COVERING POSITIONS SHORT SELLERS BET THAT STOCK PRICES WILL DECLINE AND ARE FORCED TO COVER THOSE BETS IF PRICES INSTEAD RISE THE NASDAQ COMPOSITE INDEX HAS BEEN FLIRTING WITH A RECORD FOR THE PAST WEEK A STRONG RALLY IN THE BOND MARKET TRIGGERED YESTERDAY'S SURGE ANALYSTS SAID THE RALLY COULD CONTINUE FOR THE REMAINDER OF THE SUMMER PROPELLING THE INDEX INTO THE 720S BEFORE IT SLUMPS IN EARLY AUTUMN SMALLER STOCKS HAVE BEEN CLIMBING SINCE EARLY JUNE SAID CLAUDIA MOTT A MARKET STRATEGIST WITH PRUDENTIAL SECURITIES THAT SHOWS THERE IS A LOT OF BREADTH IN THE MARKET AND NOT JUST A COUPLE OF BIG COMPANIES FORCING THE MARKET FORWARD MS MOTT SAID BUT IT'S NOT FULL SPEED AHEAD FOR ALL STOCKS COMPANIES WITH GOOD EARNINGS ARE THE ONES THAT WILL KEEP THIS THING GOING SHE SAID MOST SMALLER COMPANIES HAVE LESS EXPOSURE TO EUROPE WHICH IS STILL IN RECESSION AND HAVE A BETTER CHANCE TO PRODUCE BIG EARNINGS GAINS THAN MANY LARGE STOCKS KURT FEUERMAN AN EMERGING GROWTH ANALYST WITH MORGAN STANLEY SAID AS LONG AS INTEREST RATES STAY LOW AND INSTITUTIONAL MONEY KEEPS FLOWING INTO STOCKS THE MARKET WILL BE SUPPORTED AT THIS LEVEL INVESTORS ARE LOOKING FOR HIGHQUALITY GROWTH HE SAID EVER SINCE THE COLLAPSE OF THE OLD GROWTH STOCKS IN BEVERAGE AND FOOD AREAS EARLY THIS YEAR INVESTORS HAVE TURNED TO THE NASDAQ ISSUES HE SAID YESTERDAY'S RALLY WAS SUPPORTED BY TELECOMMUNICATIONS AND CABLE STOCKS WHICH MOSTLY MAKE UP THE NASDAQ UTILITIES INDEX THIS MEASURE JUMPED 1337 TO A RECORD OF 94689 MCI COMMUNICATIONS ROSE 3/8 TO 28 1/4 MCCAW CELLULAR COMMUNICATIONS JUMPED 1 1/4 TO 49 AND TELECOMMUNICATIONS EDGED UP 3/8 TO 22 7/8 HEALTHCARE AND MEDICALRELATED STOCKS ALSO HELPED TO BOOST THE NASDAQ RALLY US HEALTHCARE LEAPED 2 3/4 TO 51 1/2 CHIRON ROSE 1/4 TO 62 1/2 AND TAKECARE CLIMBED 1 3/4 TO 47 1/4 MR FEUERMAN SAID RETAIL STOCKS HAVE POSTED STRONG GAINS GYMBOREE JUMPED 1 7/8 TO 42 1/4 BED BATH & BEYOND ROSE 7/8 TO 24 1/2 AND F&M DISTRIBUTORS INCHED UP 1/8 TO 10 3/4 THE NASDAQ COMPOSITE MANAGED TO RISE DESPITE THE DECLINES IN SOME OF ITS MOST ACTIVE STOCKS INTEL DROPPED 1 1/8 TO 53 3/8 AND NOVELL FELL 1/2 TO 24 3/4 DELL COMPUTER PLUNGED 3 3/8 TO 15 7/8 DELL COMPUTER SAID IT PLANS TO TAKE 75 MILLION TO 85 MILLION IN PRETAX RESTRUCTURING CHARGES FOR THE FISCAL SECONDQUARTER THOSE CHARGES ARE HIGHER THAN WALL STREET HAD ANTICIPATED AND GO BEYOND THE EXPECTED COSTS OF REVAMPING ITS NOTEBOOK BUSINESS TO COVER INVENTORY WRITEDOWNS AND RESTRUCTURING MEASURES MERRILL LYNCH LOWERED ITS INTERMEDIATETERM INVESTMENT RATING TO BELOW AVERAGE FROM NEUTRAL A POOR EARNINGS OUTLOOK SENT MATHSOFT TUMBLING 3 POINTS TO 6 THE CAMBRIDGE MASS SOFTWARE MAKER SAID TUESDAY THAT IT EXPECTS TO REPORT A LOSS FROM OPERATIONS OF 600000 TO 900000 OR NINE CENTS TO 14 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER BECAUSE OF LOWERTHANEXPECTED YIELDS FROM ITS DIRECT MAIL MARKETING CAMPAIGN THE COMPANY EARNED 408000 IN THE YEARAGO FOURTH QUARTER IMPROVED FISCAL THIRDQUARTER RESULTS BOOSTED MICROAGE'S STOCK 3 1/4 TO 19 THE INFORMATION TECHNOLOGY CONCERN IN TEMPE ARIZ REPORTED THIRDQUARTER NET INCOME OF 50 CENTS A SHARE COMPARED WITH EARNINGS OF 26 CENTS A SHARE A YEAR EARLIER CAITLIN MOLLISON IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9307150001 930715 LETTERS TO THE EDITOR MAKE SOMEONE PAY FOR YOUR MISERY WHETHER BY IRONY OR DESIGN TWO STORIES IN YOUR JUNE 22 EDITION PRODUCED A KIND OF JOURNALISTIC OXYMORON SIDE BY SIDE ARE TWO HEADLINES SUITS INVOLVING DEFUNCT BENDECTIN CHILL DEVELOPMENT OF PREGNANCY MEDICATIONS AND LAWYERS PLAN TO ACCENTUATE THE POSITIVE ONE DOESN'T KNOW WHETHER TO LAUGH OR CRY AT A RECENT CONFERENCE ON THE EFFECT OF THE AMERICAN TORT SYSTEM ON COMPETITIVENESS AND INNOVATION SPONSORED BY THE BROOKINGS INSTITUTE IN WASHINGTON WE WERE APPALLED TO LEARN THE FULL EXTENT OF THE PLAINTIFFS' BAR'S INTIMIDATION OF ANY INNOVATIVE ENTERPRISE IN THIS COUNTRY THE REPORT ISSUED BY THAT CONFERENCE GROUP IS A SOBERING DOCUMENT THAT SHOULD BE READ BY ANYONE SERIOUSLY CONCERNED WITH THE FUTURE OF THIS SOCIETY'S PREEMINENT POSITION IN THE WESTERN WORLD REST ASSURED THAT IF AND WHEN THERE IS AN EFFECTIVE AIDS VACCINE IT WILL NOT BE AMERICAN IT WILL PROBABLY BE FRENCH FOR EVERY DOLLAR OF RESEARCH AND DEVELOPMENT US PHARMACEUTICAL COMPANIES HAVE TO PUT ASIDE ONE DOLLAR IN RESERVE AGAINST LITIGATION DEFENSE THE EUROPEAN COMMUNITY WILL RUN CIRCLES AROUND US WHEN IT COMES TO ANY KIND OF TECHNOLOGICAL OR SCIENTIFIC BREAKTHROUGH WHOSE SUCCESS DEPENDS ON HUMAN TESTING YOU MAY RECALL THAT THE SECOND LINE IN JOHNNY MERCER'S SONG ACCENTUATE THE POSITIVE WAS ELIMINATE THE NEGATIVE HOWEVER IN THE US THE PROFIT POTENTIAL IN HUMAN MISERY IS TOO GREAT TO ALLOW FOR THE POSSIBILITY THAT THE UNDERLYING EVENT OR PROBLEM MAY NOT BE ANYONE ELSE'S RESPONSIBILITY BUT YOUR OWN OR AN ACT OF GOD WE CAN CERTAINLY CONGRATULATE THE CONTINGENCYFEE BAR FOR THEIR SUCCESS IN WEAVING INTO THE FABRIC OF AMERICAN LIFE THE CREDO THAT IF ANYTHING BAD HAPPENS SOMEONE ELSE MUST BE RESPONSIBLE AND HAS TO PAY 9307140150 930714 WESTERN GERMAN PRICES WIESBADEN GERMANY WHOLESALE PRICES IN WESTERN GERMANY CLIMBED 02 IN JUNE FROM MAY AFTER FALLING IN THE PREVIOUS TWO MONTHS WHOLESALE PRICES FELL 18 IN JUNE FROM A YEAR EARLIER 9307140149 930714 WHO'S NEWS BEAR STEARNS' PRESIDENT CAYNE SUCCEEDS GREENBERG IN ADDITIONAL POST OF CEO BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BEAR STEARNS COS NAMED PRESIDENT JAMES E CAYNE TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING ALAN C GREENBERG WHO REMAINS CHAIRMAN OF THE WALL STREET TRADING FIRM THE PROMOTION OF MR CAYNE 59 YEARS OLD REFLECTS HIS ROLE IN EFFECTIVELY RUNNING THE DAYTODAY OPERATIONS AT THE FIRM FOR THE PAST FEW YEARS ANALYSTS SAY UNLIKE THE CHAIRMEN OF MOST BIG WALL STREET FIRMS MR GREENBERG 65 HAS SPENT MUCH OF HIS TIME TRADING BONDS ALONG WITH OTHER BEAR SALESMEN THIS IS BUSINESS AS USUAL MR CAYNE SAID IN AN INTERVIEW IT'S ORDERLY AND NATURAL MR CAYNE'S STAR HAS BEEN RISING STEADILY SINCE BEAR STEARNS BECAME A PUBLIC COMPANY IN 1985 HE HAS BEEN THE FIRM'S PRESIDENT SINCE 1988 THE APPOINTMENT UNDERSCORES A SMOOTH MANAGEMENT TRANSITION IN AN INDUSTRY KNOWN FOR FREQUENT HIGHLEVEL SHAKEUPS JUST YESTERDAY ARCHIBALD COX JR WAS OUSTED AS PRESIDENT AND CHIEF EXECUTIVE OF FIRST BOSTON CORP THIS IS ONE OF THE FEW FIRMS WHERE THE MANAGEMENT TRANSITION HAS BEEN SMOOTH SAID DENIS BOVIN A BEAR STEARNS VICE CHAIRMAN MR CAYNE HAS WORKED CLOSELY WITH MR GREENBERG IN ALL THE MAJOR GROWTH INITIATIVES HERE MR BOVIN SAID MESSRS CAYNE AND GREENBERG HAVE BEEN AMONG THE HIGHEST PAID EXECUTIVES ON WALL STREET THE PAST TWO YEARS MR GREENBERG HAD SALARY AND BONUS OF 158 MILLION FOR FISCAL 1992 MR CAYNE MADE 147 MILLION THEIR FISCAL 1993 PAY PACKAGES WILL BE ROUGHLY IN LINE WITH THE PREVIOUS YEAR PEOPLE FAMILIAR WITH THE FIRM SAID MR GREENBERG HIRED MR CAYNE AT BEAR IN 1969 AS A STOCKBROKER AND THE TWO HAVE REMAINED CLOSE ASSOCIATES OVER THE YEARS PARTICULARLY THROUGH THEIR INTEREST IN BRIDGE IN ADDITION TO HIS PRESIDENCY MR CAYNE ALSO HEADS BEAR'S MANAGEMENT AND COMPENSATION COMMITTEE MR GREENBERG WAS TRAVELING AND COULDN'T BE REACHED BUT HE SAID IN A STATEMENT THAT IT IS MY INTENTION TO DEVOTE MY FULL TIME AND ENERGY TO THE EXERCISE OF MY DUTIES AS CHAIRMAN OF THE COMPANY AND CHAIRMAN OF THE EXECUTIVE COMMITTEE HE SAID MR CAYNE'S PROMOTION RECOGNIZES THE CONTRIBUTIONS JIMMY HAS MADE TO THE SUCCESS OF BEAR STEARNS BEAR STEARNS HAS ENJOYED THE PROFIT BOOM ON WALL STREET SOME ANALYSTS EXPECT BEAR TO REPORT FISCAL 1993 EARNINGS OF ABOUT 350 MILLION OR 3 A SHARE 9307140148 930714 JACOR GETS NASDAQ LISTING CINCINNATI JACOR COMMUNICATIONS INC SAID ITS COMMON STOCK AND WARRANTS WERE APPROVED TO BE LISTED ON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS' NASDAQ SMALLCAP MARKET THE COMPANY OWNS AND OPERATES RADIO BROADCAST PROPERTIES AND A CABLE TELEVISION SYSTEM 9307140147 930714 KIA MOTORS' EXPORTS TO US SEOUL SOUTH KOREA KIA MOTORS CORP SAID IT EXPORTED ITS FIRST PASSENGER CAR SEPHIA TO THE US BY SHIPPING 200 UNITS MONDAY KIA WHICH PLANS TO EXPORT 7000 SEPHIAS TO THE US THIS YEAR SAID IT HOPES TO INCREASE ITS US EXPORTS OF THE SUBCOMPACTS TO 25000 UNITS NEXT YEAR AND 35000 UNITS IN 1995 9307140146 930714 KERRMCGEE COMPLETES WELL OKLAHOMA CITY KERRMCGEE CORP COMPLETED A HORIZONTAL WELL IN THE GULF OF MEXICO THAT TESTED 2749 BARRELS OF OIL A DAY AND 910 THOUSAND CUBIC FEET OF NATURAL GAS ON A RESTRICTED OPENING OF 36/64 INCH THE FLOW RATES COMPARE WITH A VERTICAL WELL DRILLED ON THE SAME RESERVOIR OF 350 BARRELS OF OIL A DAY PHILLIPS PETROLEUM CO AND KERRMCGEE EACH HOLD A 50 WORKING INTEREST IN THE WELL 9307140145 930714 PARKER & PARSLEY PARTNERSHIPS MIDLAND TEXAS PARKER & PARSLEY PETROLEUM CO SAID IT COMPLETED ITS TENDER OFFER FOR THE LAST TWO OF 35 TROUBLED ENERGY PARTNERSHIPS THAT HAD BEEN SPONSORED BY PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA PARKER & PARSLEY AN OIL AND GAS CONCERN PAID A TOTAL OF 508 MILLION INCLUDING A 17 MILLION PAYMENT TO THE GENERAL PARTNERS FOR THE 35 PARTNERSHIPS 9307140144 930714 NOVELL TO LEAD EFFORT TO DEVELOP STANDARD OF COMPUTER SECURITY PROVO UTAH NOVELL INC SAID IT IS LEADING A BROAD INDUSTRY EFFORT TO DEVELOP A SECURITY STANDARD FOR DISSIMILAR COMPUTERS THAT ARE NETWORKED TO TALK WITH ONE ANOTHER THE EFFORT TO BE ANNOUNCED TODAY IN NEW YORK WOULD PROVIDE AT LEAST AS MUCH SECURITY FOR INFORMATION BEING SWAPPED BETWEEN DIFFERENT TYPES OF COMPUTERS AS THAT WHICH ALREADY EXISTS WITHIN A SPECIFIC COMPUTER SYSTEM ITSELF COMPUTERS USING SUCH A STANDARD COULD USE A NETWORK TO EXCHANGE DATA THAT ARE PROTECTED IN A WAY THAT AN UNAUTHORIZED PARTY COULD NOT TAP INTO IT CORPORATIONS' BIGGEST ASSETS ARE THEIR INFORMATION AND WE MUST DO SOMETHING TO PROTECT THAT INFORMATION SAID SHARON WEBB LEGISLATIVE CHAIR FOR THE NATIONAL COMPUTER SECURITY ASSOCIATION A TRADE GROUP IN CARLISLE VA THE ENHANCED SECURITY WOULD HELP TO SAFEGUARD SENSITIVE BANKING DATA AMONG OTHER THINGS AND WOULD PROVIDE AN ALTERNATIVE TO THE CLINTON ADMINISTRATION'S RECENTLY ANNOUNCED TECHNOLOGY THAT WOULD PROTECT VOICE COMMUNICATION BUT NOT DATA CRITICS CHARGE THAT THE ADMINISTRATION'S TECHNOLOGY LIKELY WOULD NOT BE AS WIDELY USED AS THAT DEVELOPED BY PRIVATE INDUSTRY BECAUSE THE GOVERNMENT WOULD HOLD THE KEYS TO IT SCHEDULED TO ENDORSE THE COOPERATIVE EFFORT AT TODAY'S ANNOUNCEMENT ARE SUCH BIG COMPANIES AS AMERICAN TELEPHONE & TELEGRAPH CO CITIBANK DIGITAL EQUIPMENT CORP AND HUGHES AIRCRAFT CO THE OPERATING UNIT OF GENERAL MOTORS CORP A NUMBER OF SMALLER COMPANIES WILL BE ANNOUNCING PRODUCTS THAT FIT IN WITH A MODEL FOR THE NEW STANDARD WHAT WE ARE TRYING TO DO IS DELIVER A PRODUCT THAT REALLY SECURES INFORMATION IN OUR NETWORKING ENVIRONMENT FROM THE DESKTOP TO THE SERVER SAID JAN NEWMAN EXECUTIVE VICE PRESIDENT OF THE NETWARE SYSTEMS GROUP FOR NOVELL WHICH CONTROLS ROUGHLY TWOTHIRDS OF THE MARKET FOR NETWORK SOFTWARE 9307140143 930714 INTERNATIONAL JAPANESE MACHINERY ORDERS RISE TOKYO MACHINERY ORDERS TO JAPANESE MAKERS IN MAY WERE UP 13 FROM A YEAR EARLIER TO 1886 TRILLION YEN 1723 BILLION BEFORE ADJUSTMENT FOR SEASONAL FACTORS THE ECONOMIC PLANNING AGENCY SAID AFTER SEASONAL ADJUSTMENT THE MAY ORDERS ROSE 17 FROM APRIL TO 2116 TRILLION YEN BUT PRIVATESECTOR ORDERS REMAINED SLUGGISH REFLECTING THE CONTINUED WEAKNESS OF THE ECONOMY 9307140142 930714 INTERNATIONAL NORWAY'S TRADE SURPLUS WIDENS STOCKHOLM NORWAY'S TRADE SURPLUS WIDENED 28 TO 3182 BILLION KRONER 431 BILLION IN THE FIRST SIX MONTHS FROM A YEAR EARLIER LARGELY BECAUSE OF HIGHER EXPORTS OF CRUDE OIL AND LOWER TOTAL IMPORTS THE NATIONAL STATISTICS AGENCY SAID THE AGENCY SAID EXPORTS TOTALED 10674 BILLION KRONER IN THE SIX MONTHS UP 4 FROM 10262 BILLION KRONER A YEAR EARLIER THE INCREASE WAS DUE TO AN 11 JUMP IN CRUDE OIL EXPORTS TO 4536 BILLION KRONER FROM 4069 BILLION 9307140141 930714 INTERNATIONAL WAY OF LIFE IN FRENCH FARM VILLAGES JEOPARDIZED BY NEW ECONOMIC TERRAIN BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL JANSAC FRANCE LEANING ON A STONE WALL AS HE TENDS A SMALL FLOCK OF SHEEP AND GOATS BERNARD CHAFFOIS MUSES THAT HE AND HIS ANCESTORS HAVE LIVED IN THIS LITTLE VILLAGE FOR ABOUT 1300 YEARS WHEN HE WAS A BOY A DOZEN FARMERS TENDED SHEEP AND CUT LAVENDER BY HAND IN THIS PATCH OF SOUTHEASTERN FRANCE SUPPORTING A COMMUNITY OF 50 PEOPLE TODAY ALL THAT REMAIN ARE THE FIVE MEMBERS OF HIS OWN FAMILY THE SCHOOL THE GROCERY AND THE CHURCH ARE ALL CLOSED MR CHAFFOIS TODAY CAN CUT LAVENDER FOR AS FAR AS HE CAN SEE AND HE CUTS PLENTY THESE DAYS BY MACHINE BUT WITH FOREIGN COMPETITION INTENSE HE AND HIS BUSTLING WIFE MIREILLE LONG AGO REALIZED THAT LAMB AND LAVENDER WOULDN'T SUPPORT THEM THEY SURVIVE BY RUNNING A SMALL INN PEOPLE SAY IT'S AN AGRICULTURAL PROBLEM BUT IT'S A SOCIAL PROBLEM TOO SAYS MRS CHAFFOIS OUR SON IS STAYING HERE FOR NOW BUT HE AND HIS WIFE ARE EXPECTING A BABY WHAT WILL THEY DO WHEN THE CHILD NEEDS TO GO TO SCHOOL THERE'S STILL A SCHOOL IN THE NEXT VILLAGE BUT FOR HOW LONG WITH A PROMISE OF REPLACEMENT SUBSIDIES EUROPEAN COMMUNITY NEGOTIATORS LAST MONTH WON FRENCH APPROVAL FOR AN OIL SEEDS ACCORD IN WORLD FARM TRADE TALKS BUT THE NEW AGREEMENT HAS FRENCH FARMERS DEEPLY WORRIED AND FRENCH OFFICIALS STILL OPPOSE A BROADER USEC FARM ACCORD ON CUTTING SUBSIDIES WORKED OUT LAST YEAR IN WASHINGTON US AND EC NEGOTIATORS SAY THEY SYMPATHIZE WITH PEOPLE LIKE THE CHAFFOISES BUT THEY SAY IT'S TIME TO STOP LIVING IN THE PAST AND ACCEPT MARKET FORCES SOME FRENCH FARMERS NOTABLY THOSE WITH BIG SPREADS IN NORTHERN FRANCE'S GRAIN BELT CAN DO THAT SOME HAVE GROWN FAT ON SUBSIDIES BUT SMALLER FARMERS LONG AGO GAVE UP ON PRODUCING LAVENDER LAMB OR EVEN LETTUCE AT WORLD PRICES NOW THEY FEAR THAT IF THEY LOSE THEIR SUBSIDIES LARGE STRETCHES OF THIS LUSH PICTURESQUE COUNTRYSIDE WILL BE ABANDONED IT ALREADY IS HAPPENING MOST OF FRANCE'S 31000 RURAL VILLAGES THE BACKBONE OF FRENCH FARM COMMUNITIES TODAY HAVE FEWER THAN 400 RESIDENTS EACH THE CHILDREN HAVE STREAMED AWAY TO THE CITIES IN 1960 ONE FRENCH WORKER IN FOUR WORKED THE LAND TODAY IT IS ONE IN 20 AND EC PLANNERS SAY THAT STILL IS TWICE FRANCE'S NEEDS A GOVERNMENT STUDY CALLS 40 OF THE NATION'S RURAL CANTONS VILLAGE GROUPS FRAGILE OR IN CRISIS ISOLATED FROM STORES DOCTORS AND SERVICES WITH DECLINING POPULATIONS AND AGING RESIDENTS IT ISN'T JUST FRANCE ACROSS EUROPE FARMS PRODUCE SO MUCH SURPLUS FOOD THAT SOME EC PLANNERS WANT TO ABANDON 40 OF THE COMMUNITY'S FARM LAND TO FOREST AND UNDERBRUSH THE US TOO HAS SEEN FARM COMMUNITIES DISAPPEAR BUT THE US IS A MOBILE SOCIETY WHOSE FARMS OFTEN ARE LESS THAN 150 YEARS OLD FRENCH FARMERS STILL PROUDLY CALL THEMSELVES PAYSANS OR PEASANTS WITH ALL THE PROBLEMS OF CRIME AND OVERPOPULATION IN THE CITIES WE CAN'T LET RURAL AREAS LIKE THIS DISAPPEAR PLEADS JEANCLAUDE ODDON A WHEAT OIL SEED AND SHEEP FARMER AND MAYOR OF MISCON A SOUTHEASTERN VILLAGE POPULATION 40 HIS TINY VILLAGE LONG AGO LOST ITS CAFES SCHOOL AND STORES TRYING TO REPOPULATE IT MR ODDON HAS LURED A FEW CITY FOLK WHO COMMUTE TO JOBS IN LARGER TOWNS HE IS TRYING WITHOUT LUCK TO ATTRACT TOURISTS AND FIND A COMPANY OR LEISURE GROUP TO MOVE INTO A BIG CHATEAU NEARBY THEY COULD EVEN BUILD A SMALL GOLF COURSE HE SUGGESTS MR ODDON SAYS NEW ZEALAND LAMB RAISED IN A BETTER CLIMATE AND ON LARGER FARMS IS KILLING THE FRENCH MARKET FOR A WHOLE LAMB HE GETS THE EQUIVALENT OF 63 TO 83 THAT DOESN'T EVEN COVER THE COST OF FEEDING IT HE SAYS SO HE SURVIVES ON EC SUBSIDIES PAID HIM FOR EACH EWE HE OWNS WITHOUT THE AID HE ADDS NO LOCAL FARMERS WOULD REMAIN MANY FRENCH PEOPLE EVEN THOSE WHO GREW UP IN BIG CITIES CARE DESPERATELY ABOUT PROBLEMS LIKE THESE IN ELEMENTARY SCHOOL THEY LEARN THAT FRANCE IS A VAST GREEN FARMING POWER LATER THEY READ EVOCATIVE BOOKS ABOUT THE COUNTRYSIDE BY AUTHORS SUCH AS MARCEL PAGNOL IN SUMMER THEY VISIT GRANDPARENTS OR COUSINS IN SMALL TOWNS MANY CITY DWELLERS BELIEVE THAT THEY STILL COME FROM THE COUNTRY CONSIDER JACQUES CHIRAC MAYOR OF PARIS HEAD OF THE GOVERNING GAULLIST PARTY AND CURRENTLY FRONTRUNNER FOR THE 1995 PRESIDENTIAL ELECTION MR CHIRAC GREW UP MAINLY IN THE CAPITAL BUT IF YOU ASK HIM WHERE HE COMES FROM HE WILL TELL YOU ABOUT LA CORREZE A POOR SECTION OF CENTRAL FRANCE THAT WAS HIS PARENTS' BIRTHPLACE IT IS THAT REGION NOT PARIS THAT HE REPRESENTS IN PARLIAMENT HOPING TO QUIET OFTENVIOLENT FARM PROTESTS GAULLIST PRIME MINISTER EDOUARD BALLADUR RECENTLY ORDERED A FREEZE ON THE CLOSING OF SCHOOLS POST OFFICES AND OTHER PUBLIC SERVICES IN SMALL TOWNS POLLS SHOW FRENCH VOTERS STRONGLY FAVOR HELPING FARMERS STAY ON THE LAND EVEN IF IT COSTS FRANCE AND THE EC MONEY AND IT DOES IN SOME VILLAGES VACATIONERS AND RETIREES NOW OUTNUMBER PRODUCTIVE WORKERS THE SLEEPY VILLAGE OF AUREL IN THE HILLS OF SUNNY PROVENCE IS GETTING SLEEPIER BY THE YEAR WITH A POPULATION OF 40 AUREL HAS LOST HALF ITS PERMANENT RESIDENTS SINCE THE 1950S ABOUT ONETHIRD OF TODAY'S RESIDENTS ARE IN THEIR 70S AS RECENTLY AS 1970 ALMOST ALL THE WARM PINK STONE HOUSES HAD FULLTIME OCCUPANTS TODAY HALF ARE VACATION HOMES RESTORING THEM PROVIDES WORK FOR MAYOR FRANCIS JOUVE THE LOCAL MASON THE HOUSES ARE OPEN JUST THREE OR FOUR WEEKS A YEAR HE SAYS PEOPLE COME LESS AND LESS AND AFTER AUG 15 THEY ARE CLOSED UP FOR GOOD THE GROCERY CLOSED YEARS AGO TO HELP OUT MRS JOUVE THE POSTMISTRESS SELLS SOME GROCERY ITEMS AND SOUVENIRS IN A SPARE ROOM BELOW HER HOME PEOPLE DO MOST OF THEIR SHOPPING AT SUPERMARKETS IN THE VALLEY TECHNICALLY FRANCE'S RURAL POPULATION HAS BEEN GROWING LATELY AS COMMUTERS MOVE FARTHER AND FARTHER FROM UNSAFE CITIES BUT WHAT'S REALLY HAPPENING IS THAT BEDROOM SUBURBS ARE JUST MOVING OUT WHEN YOU GET OFF THE BEATEN PATH YOU FIND THAT EVEN TOWNS WITH SEVERAL HUNDRED RESIDENTS ARE IN TROUBLE SOME SMALL VILLAGES HAVE LOST ALL THEIR RESIDENTS WITH HOMES SHUTTERED EXCEPT FOR OCCASIONAL VACATION VISITS MR ODDON THE MAYOR OF MISCON SAYS 25 OF HIS VILLAGE'S 35 DWELLINGS NOW ARE VACATION HOMES WHOSE OWNERS RARELY USE THEM IF YOU REASON ON THE BASIS OF CURRENT FACTORS HE SAYS OUR MOUNTAIN VILLAGES ARE FINISHED AND WE ARE THE LAST ONES WHO WILL LIVE HERE BUT HE STILL HOPES FOR A MIRACLE I BELIEVE THERE WILL BE A NATIONAL AWAKENING OR SOME NEW ELEMENT THAT WILL COME AND CHANGE THINGS HE SAYS 9307140140 930714 REVIEW & OUTLOOK EDITORIAL WEATHER REPORT WHATEVER ELSE MAY HAVE BEEN GOING ON IN THE WORLD IN THE PAST WEEK IT'S CLEAR THAT THE REAL AND PERHAPS ONLY STORY HERE HAS BEEN THE WEATHER AND FOR GOOD REASON WEATHER'S EFFECTS ARE IMMEDIATE INTENSE AND STRAIGHTFORWARD THE PROBLEMS THEY PRECIPITATE ARE CLEAR AND UNQUESTIONABLE AS OPPOSED TO THOSE THAT MAY EMERGE SAY FROM AN ECONOMIC SUMMIT OR A PRESIDENTIAL TRIP TO ASIA THAT SAID IT REMAINS TRUE THAT CERTAIN EXTREMES OF WEATHER HAVE A SPECIAL AUTHORITY ABOUT THEM AND THEIR EFFECTS ARE ANYTHING BUT SIMPLE FOR ONE THING SUCH WEATHER ESPECIALLY WHEN IT GOES ON FOR A LONG TIME HAS A WAY OF ASSAULTING THE MORTALS IN ITS GRIP WITH THE RECOGNITION THAT THERE ARE CERTAIN THINGS BEYOND THE CONTROL OF SOCIETIES AND STATES THERE ARE CERTAIN VICISSITUDES OF LIFE THE WEATHER INSTRUCTS US THAT CANNOT BE AVOIDED THIS REMINDER ITSELF HAS A CERTAIN VALUE FOR A SOCIETY NOW PATHOLOGICALLY ADDICTED TO THE NOTION THAT IT IS THE DUTY OF GOVERNMENT TO REDRESS ALL HUMAN ILLS AND PRODUCE PROGRAMS ANSWERS AND INSTANT CURES ALAS IT CANNOT BE SO STILL IN THEIR HUBRIS MERE MORTALS CONTINUE TO COMMAND THE WAVES OF PUBLIC POLICY TO PART BEFORE THEM MRS CLINTON'S HEALTH CARE TASK FORCE IS RESOLUTE IN ITS INTENTION TO REFORM TO RESHAPE 14 OF US GDP AIDS ACTIVISTS HAVE DIRECTED BLAME AND ACCUSATIONS OF DELIBERATE MURDER GENOCIDE ETC AT THE GOVERNMENT FOR THE BETTER PART OF A DECADE BECAUSE NO CURE FOR THE DISEASE HAS BEEN DEVELOPED BY THE GOVERNMENT'S LABORATORIES THE VICTIMS OF THE FLOODS IN THE MIDWEST WON'T FIND MUCH VALUE IN THE DEVASTATION CONFRONTING THEM NEEDLESS TO SAY PEOPLE IN THE HEAT AND HUMIDITY THAT FRIED THE NORTHEAST OVER THE PAST WEEK A CALAMITY OF INFINITELY SMALLER PROPORTIONS PROBABLY WON'T TAKE KINDLY EITHER TO THE SUGGESTION THAT SUCH SUFFERING MIGHT BE INSTRUCTIVE EVEN SO SOME OF US WHO LAY AROUND PANTING IN THE HEAT LAST WEEK COULDN'T AVOID NOTING A CERTAIN SIMILARITY BETWEEN THE FORCES OF NATURE AND THE WORLD ON WHICH IT HAD LOOSED ITSELF UNBRIDLED IS THE WAY TO DESCRIBE THOSE FORCES OF NATURE WE SAW AND FELT IT IS ALSO THE BEST DESCRIPTION OF OUR SOCIETY TODAY THE DIFFERENCE AND IT IS AN IMPORTANT ONE IS THAT IT IS NATURE'S BUSINESS TO BE UNBRIDLED IT'S POSSIBLE IT OCCURRED TO US THAT THERE WAS A CERTAIN ROUGH LESSON IN THIS OUTPOURING FROM MOTHER NATURE IT WAS PERHAPS A REMINDER TO SOME OF US THAT WE WOULD STOP JUST STOP AND ENGAGE IN WHAT IS KNOWN IN OUR UNBRIDLED FAST TIMES AS A REALITY CHECK THE RECENT HEAT WAVE WAS AN ESPECIALLY ACUTE REMINDER AS IT IS EVERY TIME ONE STRIKES NOWADAYS OF THE CHANGES TIME HAS WROUGHT IN ATTITUDES AND EXPECTATIONS FIFTY YEARS AGO AMERICANS WAKING TO THE TENTH 95DEGREESINTHESHADE DAY IN A ROW WOULD TELL ONE ANOTHER IT'S ANOTHER HOT ONE AND GO OFF ABOUT THEIR BUSINESS TODAY WITH THE HELP OF ROUND THE CLOCK BULLETINS BY EXCITED LOCAL AND NATIONAL BROADCASTERS OF WHAT IS GENEROUSLY CALLED THE NEWS PEOPLE HAVE COME TO VIEW THE SUMMER'S REGULAR TENDENCY TO TURN WHOLE AREAS OF THE NATION INTO CAULDRONS AS A KIND OF EPIC DISASTER IT MAY NOT BE LONG NOW BEFORE WE WILL BE SEEING MOVIES ON THE HEAT WAVE OF '93 PERHAPS SOMETHING CALLED INFERNO STARRING TOM CRUISE AS A REBEL FORECASTER PUTTING HIS CAREER ON THE LINE AND WAGING WAR AGAINST MALIGNANT BUREAUCRATS IN THE WEATHER SERVICE WHO WANT TO HIDE THE FACT OF THE COMING HEAT WAVE THE HEAT WAVE OR MORE PRECISELY THE REPORTING AND GENERAL VIEW OF ITTESTIFIES TO A CERTAIN SOFTNESS AND FRAGILITY THAT WAS SIMPLY NOT A PART OF THE WAY AN OLDER AMERICA USED TO VIEW ITSELF THE GOOD NEWS IS THAT DOWN DEEP AMERICANS ARE PROBABLY AS TOUGH AND RESOURCEFUL AS THEY EVER WERE SO IT WOULD SEEM FROM THE STURDY ATTITUDES OF SOME NOW BEING OVERWHELMED BY THE DEVASTATION OF THE MISSISSIPPI FLOODS BUT IT DOES GET HARDER AND HARDER FOR PEOPLE TO RECOGNIZE THAT FACT ESPECIALLY IF THEY BELIEVE WHAT THEY HEAR ON THE EVER DRIPPY ALWAYS SENTIMENTALLY SODDEN NEWS ABOUT OUR TIMES 9307140139 930714 ENTERPRISE WOMEN THROW THEIR WRENCHES INTO A WORKPLACE RULED BY MEN BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL THEY ARE WOMEN ARMED WITH WRENCHES AND MOTOR OIL AND THIS IS THEIR MISSION TO INFILTRATE ONE OF THE MOSTENTRENCHED WORKFORCE BASTIONS OF MALE DOMINATION THE AUTOREPAIR GARAGE THESE WOMEN GREASE MONKEYS ARE ALSO BOSSES AND THEY HAVE NEW STRATEGIES NO PINUP GIRLIE PICTURES NO FOURLETTER WORDS WAITING ROOMS WITH COLORFUL CURTAINS AND NO FISHING PROGRAMS BLARING FROM THE TV GLAMOUR WORKING WOMAN LADIES HOME JOURNAL AND VOGUE SPRAWLED ON COFFEE TABLES PLAY AREAS FOR CHILDREN AND PETS I WANT TO BE MS GOODWRENCH SAYS JANET BROWN OF WOMEN'S AUTO CLINIC NEWPORT NEWS VA I AM A WOMAN WHO HAS BEEN TAKEN MANY TIMES BY MECHANICS WE'RE HERE TO TREAT WOMEN CLIENTS LIKE THEY HAVE A MIND AND TO SHOW THAT A FEMALE IN THE BUSINESS DOESN'T HAVE TO BE JUST A GREAT BODY LYING ON THE CAR SHOWING HERSELF WOMEN MECHANICS ARE FEW IN NUMBER NATIONALLY ONLY 7000 FEWER THAN 1 BUT UP SLIGHTLY FROM TWO DECADES AGO OF NEARLY 900000 AUTO MECHANICS ARE WOMEN BREAKING IN IS TOUGH THESE WOMEN SAY AS EXPECTED MANY MEN DON'T TRUST THEM AT FIRST MAKING IT DIFFICULT TO WIN CUSTOMERS AND TO OPEN ACCOUNTS WITH PARTS SUPPLIERS IN THE MALEDOMINATED INDUSTRY ALSO FRUSTRATING THEY SAY ARE THOSE WOMEN WHO THINK THEY SHOULD GET SPECIAL DEALS FOR PATRONIZING ANOTHER WOMAN INSTEAD OF USING A MAN THEY SEEM TO EXPECT THAT BECAUSE I'M A WOMAN I'LL CUT THEM A DEAL OTHERWISE IT'S NOT WORTH RISKING USING MY SERVICES SAYS JULIE WEISMANNMCCLAIN OF AUSTIN TEXAS WHO FOR NOW HAS CLOSED HER MOM'S GARAGE BECAUSE OF SUCH ATTITUDES THE KEY IS CONVINCING CUSTOMERS OF BOTH SEXES THAT WOMEN CAN BE AS EXPERT UNDER THE HOOD AS MEN SAYS LESLEY FERIDONFAR OWNER OF DOMINION IMPORT SERVICE IN RICHMOND VA WEARY OF HEARING HER FEMALE FRIENDS WHINE ABOUT RIPOFF MECHANICS SHE TURNED HER YOUTHFUL FASCINATION WITH SPORTS CARS INTO A BUSINESS VENTURE BOLSTERED BY HER YEARS IN RETAILING AS A CONVENIENCESTORE MANAGER SHE SOUGHT WOMEN CUSTOMERS ADVERTISING IN THE WOMEN'S YELLOW PAGES AND ON RADIO STATIONS WITH LARGE FEMALE AUDIENCES IT SEEMS TO HAVE WORKED TODAY MS FERIDONFAR SERVES AN 80 FEMALE CLIENTELE AND EXPECTS TO GROSS ABOUT 120000 THIS YEAR WITH HER STAFF OF TWO WOMEN AND ONE MAN HER HUSBAND I'M THE ONE WITH THE BULLWHIP AROUND HERE SHE SAYS WHEN I TALKED TO PARTS VENDORS IN THE BEGINNING THEY USED TO ASK FOR MY HUSBAND I TOLD THEM I'M THE BOSS SO YOU MIGHT AS WELL DEAL WITH ME' EVENTUALLY THEY REALIZED I COULD RATTLE OFF PROBLEMS AND SOLUTIONS WITH THE BEST OF THEM SHE'S IN AN AREA PACKED WITH COMPETITORS MOST OF THEM MALE ONE OF THEM IS BILL FERGUSON OF FERGUSON'S AUTO SERVICE WHO HAS BEEN OPEN SINCE 1962 ABOUT 30 YEARS LONGER THAN DOMINION HE SAYS IT USED TO BE THAT WOMEN JUST KEPT THEIR MOUTHS SHUT IN THE GARAGE NOW THE WOMEN ARE MUCH SMARTER AND ASK QUESTIONS IN FACT THEY GIVE BETTER DESCRIPTIONS OF CAR PROBLEMS THAN MEN BECAUSE MEN FEEL LIKE THEY'RE SUPPOSED TO KNOW ABOUT CARS BUT ONE MAN ATLANTA ARTIST KING THACKSTON NEVER FELT COMFORTABLE ABOUT HIS CAR UNTIL HE STARTED DEALING WITH MARGIE SEALS OF MY FAVORITE MECHANIC INC NOW A SIXMECHANIC OUTFIT IT'S THE FIRST TIME I EVER HAD A MECHANIC WHO REALLY TALKED TO ME HE SAYS MS SEALS GRADUATED AT THE TOP OF HER MECHANICSCHOOL CLASS IN CHICAGO IN THE 1970S BUT BEAT THE STREETS FOR SIX MONTHS BEFORE A MALE GARAGE OWNER HIRED HER SHE RECALLS HIS SAYING I COULDN'T FIND A MALE MECHANIC WITH YOUR CREDENTIALS TO WORK FOR WHAT I'M ABOUT TO PAY YOU TWENTY YEARS LATER HER 400CUSTOMER BUSINESS RAPIDLY OUTGREW THE TWO BROWN FORD TRUCKS FROM WHICH SHE USED TO OPERATE AS A RULE FEMALE GARAGE OWNERS HIRE MOSTLY WOMEN MECHANICS ALTHOUGH FINDING QUALIFIED ONES CAN BE DIFFICULT DEANNA SCLAR AUTHOR OF AUTOREPAIR FOR DUMMIES SAYS SHE HAS TROUBLE CONVINCING TEENAGE GIRLS THAT MECHANICS CAN BE FEMININE WHEN SHE MAKES PRESENTATIONS SHE FLASHES INCHLONG RED FINGERNAILS MY MOST POPULAR QUESTION IS HOW DO YOU GET THE DIRT OUT FROM UNDER THEM' SHE SAYS STRATEGIES FOR WOOING CUSTOMERS VARY MS SEALS IN ATLANTA SENDS OUT HOTPINK FLIERS HANGS BLUEANDRED CURTAINS AND PROVIDES A PLAY AREA FOR CHILDREN AND PETS TO HELP MOTHERS WHO CAN'T LEAVE THEM AT HOME MS FERIDONFAR IN RICHMOND HAS CARPETING VICTORIA'S SECRET CATALOGS AND ABSOLUTELY NO PINUP POSTERS FOR MS BROWN IN NEWPORT NEWS THE HOOK IS A MAUVEANDGRAY LOGO WITH THE SILHOUETTE OF A WRENCHWIELDING FEMALE NAMED MARY AFTER MS BROWN'S LATE MOTHER WHO LEFT FUNDING FOR THE BUSINESS PITTSBURGH GARAGE OWNER EDDIE SHABLIK SAYS HIS FEMALE CUSTOMERS 30 OF HIS BUSINESS SEEM TO KNOW LESS ABOUT CARS THAN MEN AND HE CONCEDES THAT A LOT OF MALE MECHANICS TALK DOWN TO WOMEN CUSTOMERS I DON'T HE ASSURES I'LL EXPLAIN IT TO THEM ONCE AND IF THEY DON'T GET IT I'LL TRY THREE OR FOUR MORE TIMES AND THEN ASK WHY THEY DON'T UNDERSTAND BUT NO MATTER HOW MUCH MALE GARAGE OWNERS SAY THEY ARE TRYING ARLINE DORAN OWNER OF MOM'S GARAGE IN MANCHESTER NH SAYS THE ONES SHE KNOWS WILL NEVER EARN HER RESPECT IT TOOK HER THREE MONTHS TO OPEN CHARGE ACCOUNTS WITH PARTS STORES BECAUSE THERE WASN'T A MAN TO SIGN THE CONTRACTS SHE HAS LEARNED THAT ADDRESSING MEN WITH A HI CUTIE OR HEY SWEETIE WILL GET HER FURTHER THAN STRAIGHT TALK I'VE LEARNED TO MANIPULATE THEM THEY TRY HARDER TO HELP ME THAT WAY TODAY HER THREEYEAROLD BUSINESS SERVES MORE THAN 1000 CUSTOMERS PULLING IN AROUND 500000 ANNUALLY PEOPLE ARE TREATED WITH RESPECT HERE MS DORAN SAYS WOMEN ARE TREATED WITH RESPECT MALE MECHANICS AROUND HERE ARE MAD AT ME BECAUSE THEY'VE SIMPLY HAD TO CLEAN UP THEIR ACT MS SEALS OF ATLANTA CHEERFULLY ADDS LET THE MEN KEEP ON PUTTING WOMEN DOWN AND PATRONIZING THEM IT'S BETTER FOR MY BUSINESS 9307140138 930714 MEDIA RADIO STATIONS GAIN BY GOING AFTER HISPANICS BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL THE HOT SOUND IN RADIO THESE DAYS IS HISPANIC SINCE 1990 THE NUMBER OF HISPANIC RADIO STATIONS IN THE US HAS GROWN 21 TO 390 ACCORDING TO THE M STREET JOURNAL AN INDUSTRY TRADE PUBLICATION IN AT LEAST THREE MARKETS HISPANIC STATIONS MOVED TO THE TOP OF THE RATINGS CHARTS IN THE PAST YEAR DESPITE CONTINUING CHARGES THAT RATINGS GATHERERS UNDERESTIMATE THE AUDIENCE OF ETHNIC STATIONS OVERALL ADVERTISERS SPENT 2226 MILLION TO REACH HISPANIC RADIO AUDIENCES IN 1992 ACCORDING TO A SURVEY BY HISPANIC BUSINESS MAGAZINE THAT IS A 55 GAIN SINCE 1990 DURING AN INDUSTRYWIDE SLUMP AND TWO ADVERTISINGPLACEMENT AGENCIES THAT SPECIALIZE IN THE HISPANIC MARKET SAY THEIR BILLINGS ROSE 20 TO 30 IN THE FIRST HALF OF 1993 COMPARED WITH THE YEAREARLIER PERIOD NO WONDER HISPANIC RADIO STATIONS HAVE BECOME HOT ACQUISITION TARGETS THERE'S A LARGE VIBRANT AND QUICKLY GROWING HISPANIC POPULATION IN THE US SAYS WARREN TICHENOR VICE PRESIDENT OF DALLAS'S PRIVATELY HELD TICHENOR MEDIA SYSTEM INC AND GENERAL MANAGER OF FOUR OF ITS 15 HISPANIC RADIO STATIONS LAST MONTH TICHENOR MEDIA SPENT AN ESTIMATED 16 MILLION TO 17 MILLION TO BUY THREE OF THOSE HISPANIC RADIO STATIONS IN SAN ANTONIO FROM TK COMMUNICATIONS INC MIAMI AND GENESIS BROADCASTING INC DALLAS EXECUTIVES AT TICHENOR WHICH TURNED EXCLUSIVELY TO HISPANIC RADIO A DECADE AGO SAY THEY ARE EYEING THE COMPETITIVE LOS ANGELES AND SAN FRANCISCO MARKETS AS WELL CARL PARMER PRESIDENT OF LOS ANGELESBASED HEFTEL BROADCASTING CORP SAYS HEFTEL IS LOOKING AT THE FIVE LARGEST HISPANIC MARKETS IN AN EFFORT TO ADD TO THE FOUR HISPANIC STATIONS THE COMPANY CURRENTLY OWNS IN MIAMI AND IN LOS ANGELES THE RISE OF HISPANIC STATIONS SAY INDUSTRY OBSERVERS REFLECTS THE INCREASING SIZE AND ECONOMIC CLOUT OF THE RAPIDLY GROWING MINORITY GROUP ACCORDING TO THE 1990 US CENSUS THE COUNTRY'S HISPANIC POPULATION GREW 53 TO 224 MILLION DURING THE 1980S COMPARED WITH A 10 GROWTH RATE FOR THE GENERAL POPULATION IN THE US MR TICHENOR POINTS OUT THE HISPANIC POPULATION IS ALMOST AS BIG AS THE ENTIRE POPULATION OF CANADA WITH THIS POPULATION GROWTH SEVERAL HISPANIC STATIONS HAVE SURGED TO THE TOP OF THE RATINGS CHARTS IN THE PAST YEAR THE HIGHLY COMPETITIVE LOS ANGELES RADIO MARKET WAS STUNNED LAST WINTER WHEN KLAXFM PART OF THE SEVENSTATION SPANISH BROADCASTING SYSTEM EDGED OUT ALL COMERS WITH AN AVERAGE SHARE OF 72 OF THE LISTENING AUDIENCE ACCORDING TO ARBITRON CO THE MAJOR RADIORATINGS SERVICE TICHENOR MEDIA'S KXTNFM LED THE SAN ANTONIO MARKET WITH AN 84 SHARE IN LAST FALL'S SURVEY WHILE ANOTHER TICHENOR STATION KGBTAM IN HARLINGEN TEXAS ROSE TO THE TOP OF THE LOWER RIO GRANDE VALLEY MARKET WITH 132 OF THE AUDIENCE BESIDES POPULATION GROWTH PROGRAM DIRECTORS ATTRIBUTE GAINS TO FORMATS ALTERED TO ATTRACT YOUNGER LISTENERS KLAXFM LOS ANGELES PLAYS MORE POPULAR SPANISH MUSIC STYLES INCLUDING BANDA RANCHERA AND NORTENA HISTORICALLY SPANISH RADIO HAD BEEN VIEWED POSSIBLY INCORRECTLY AS AN OLDER MARKET SAYS RAUL ALARCON JR PRESIDENT OF SPANISH BROADCASTING SYSTEM WE TARGETED A MUCH YOUNGER DEMOGRAPHIC THAT HAD TRADITIONALLY BEEN THROWN AWAY TO THE ANGLO STATIONS KXTNFM AND SISTER STATION KONJAM PLAY TEJANO MUSIC A POPULAR TEXAS MUSICAL STYLE THAT COMBINES ROCK BLUES AND COUNTRY MUSIC PROGRAM DIRECTOR RUDY ROCHAS SAYS HE APPLIED THE TOP 40 FORMAT CONCEPT TO SPANISHLANGUAGE HITS THE STATIONS PLAY REPEATING POPULAR SONGS MORE OFTEN BECAUSE AN ESTIMATED 96 OF THE STATIONS' LISTENERS ARE BILINGUAL KXTNFM AND KONJAM'S DISK JOCKEYS HAVE ADOPTED A HYBRID OF ENGLISH AND SPANISH THAT OPERATIONS DIRECTOR JESSE RIOS CALLS SPANGLISH BUT DESPITE RECENT GAINS HISPANIC STATION OWNERS CONTINUE TO COMPLAIN THAT ARBITRON UNDERESTIMATES THEIR AUDIENCES WE DON'T THINK THEY'RE VERY GOOD AT IT SAYS DAVID LYKES SENIOR VICE PRESIDENT AT TICHENOR MEDIA STATION OWNERS SAY ARBITRON'S METHODS MISS MANY LISTENERS BECAUSE OF LANGUAGE BARRIERS AND A CULTURAL RELUCTANCE TO RESPOND TO STRANGERS ON THE TELEPHONE THOMAS MOCARSKY A VICE PRESIDENT OF ARBITRON CONCEDES THAT IT HAS BEEN DIFFICULT TO GET HISPANICS TO PARTICIPATE IN THE SURVEYS HE SAYS THE RATINGS SERVICE USES A WHOLE RAFT OF SPECIAL TECHNIQUES TO ENCOURAGE HISPANICS TO FILL OUT THE MATERIALS INCLUDING BILINGUAL INSTRUCTIONS 2 PREMIUMS FOR COMPLETING DIARIES AND THREE FOLLOWUP CALLS OTHER SURVEY PARTICIPANTS GET 1 PREMIUMS AND ONE FOLLOWUP CALL HISPANIC STATION OWNERS ALSO COMPLAIN THAT MANY ADVERTISERS STILL DISCRIMINATE AGAINST THEM I'VE GOT THE NO 1 STATION IN LA BUT I'M NOT GETTING ANYWHERE NEAR THE REVENUES THE NO 2 OR 3 OR 4 STATIONS GET SAYS MR ALARCON HE AND OTHER STATION OWNERS SAY THE HISPANIC MARKET STILL SUFFERS FROM THE STEREOTYPE THAT ITS LISTENERS ARE POOR IMMIGRANTS BUT CLEARLY THAT STEREOTYPE IS FADING HISPANIC RADIO STATIONS ARE ATTRACTING MORE AND MORE ADVERTISING FROM BIGNAME CONSUMERPRODUCT COMPANIES THESE DAYS ACCORDING TO THE HISPANIC BUSINESS SURVEY THE FIVE TOP ADVERTISERS IN THE HISPANIC MARKET THE MAGAZINE SAID INCLUDE PROCTER & GAMBLE CO ANHEUSERBUSCH COS MCDONALD'S CORP COCACOLA CO AND PHILIP MORRIS COS SEVERAL TELECOMMUNICATIONS COMPANIES INCREASED THEIR EXPENDITURES ON ADVERTISING IN THE HISPANIC MARKET CONSIDERABLY ACCORDING TO THE SURVEY WHAT THE ADVERTISERS ARE CHASING IS A FORMIDABLE MARKET THE MEAN INCOME OF HISPANIC FAMILIES ACCORDING TO 1990 CENSUS FIGURES IS 29311 COMPARED WITH 43803 FOR ALL US FAMILIES AND THE TOTAL SIZE OF THE HISPANIC MARKET IS ABOUT 182 BILLION A YEAR STRATEGY RESEARCH CORP A CONSULTANT TO TICHENOR ESTIMATES ACCORDING TO AN ANALYSIS OF CONSUMERSPENDING DATA BY HORACIO SOBERONFERRER AN ASSISTANT PROFESSOR OF CONSUMER ECONOMICS AT THE UNIVERSITY OF MARYLAND HISPANIC FAMILIES TODAY RESEMBLE NONHISPANIC FAMILIES DURING THE BABY BOOM THEY ARE HEAVIER CONSUMERS OF FAST FOOD SOFT DRINKS TELEPHONE SERVICES AND ENTERTAINMENT INCLUDING RADIO THAN THE GENERAL POPULATION FURTHERMORE HISPANICS ARE LOYAL RADIO LISTENERS TUNING IN AN AVERAGE OF 2525 HOURS A WEEK OR 13 MORE THAN THE GENERAL POPULATION ACCORDING TO A SURVEY LAST FALL BY ARBITRON THE TENDENCY IN THE SPANISH COMMUNITY IS TO LISTEN TO MORE SPANISH RADIO SAYS ZEE FERRUFINO PRESIDENT OF THE 120MEMBER AMERICAN HISPANIC OWNED RADIO ASSOCIATION AND A COOWNER OF KBNOAM A HISPANIC STATION IN DENVER THEY LISTEN TO THE RADIO WHEN THEY GO TO WORK THEY LISTEN IN MANY PLACES WHILE THEY WORK AND THEY LISTEN WHILE THEY COME BACK FROM WORK NUMBER OF HISPANIC RADIO STATIONS IN THE US 9307140137 930714 INTERNATIONAL BRITISH AIRWAYS CHIEF DENIES EXISTENCE OF CAMPAIGN BY CARRIER AGAINST RIVAL BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SIR COLIN MARSHALL CHAIRMAN OF BRITISH AIRWAYS PLC ACKNOWLEDGED THAT THE CARRIER ENGAGED IN A FEW UNCONNECTED INCIDENTS OF CONDUCT AGAINST RIVAL VIRGIN ATLANTIC AIRWAYS BUT SAID BRITISH AIR IS PREPARED TO FIGHT IN COURT TO PROVE ONCE AND FOR ALL THERE WAS NO WIDESPREAD COMPANYSANCTIONED CAMPAIGN AGAINST THE VIRGIN GROUP LTD UNIT A DEFENSE OF BRITISH AIR'S BEHAVIOR WAS THE CENTERPIECE OF MR MARSHALL'S REMARKS YESTERDAY AT THE COMPANY'S ANNUAL SHAREHOLDER MEETING HIS FIRST AS CHAIRMAN CONTRARY TO EXPECTATIONS THAT FIREWORKS WOULD ERUPT OVER THE VIRGIN AFFAIR SHAREHOLDERS SEEMED MORE INTERESTED IN BOARD MEMBERS' COMPENSATION AND WHY BRITISH AIR BUYS MOSTLY USMADE AIRPLANES SEVERAL PRAISED MR MARSHALL AND ONE WOMAN FROM CORNWALL CALLED HIM THE MOST IMPORTANT BUSINESSMAN IN THE COUNTRY MR MARSHALL FORCEFULLY DENIED THERE EVER WAS A WIDERANGING CENTRALLY ORCHESTRATED CAMPAIGN TO DAMAGE VIRGIN AT THE SAME TIME HE ACKNOWLEDGED A FEW UNCONNECTED INCIDENTS OF CONDUCT BY A FEW BRITISH AIRWAYS EMPLOYEES THOSE INCIDENTS HE SAID RELATED TO BRITISH AIR'S USE OF COMPUTERIZED INFORMATION ON VIRGIN'S PASSENGER LOADS BUT MR MARSHALL DENIED THAT BRITISH AIR EMPLOYEES ILLEGALLY TAPPED INTO VIRGIN'S COMPUTER SYSTEM HE SAID EMPLOYEES HAD USED INFORMATION AVAILABLE TO BRITISH AIR AND OTHER AIRLINES ON THEIR OWN COMPUTERS BUT VIRGIN CONSIDERED USE OF THIS INFORMATION A BREACH OF COPYRIGHT THE CASE IS PENDING IN A LONDON COURT THIS YEAR BRITISH AIR PAID 610000 901580 TO SETTLE A SEPARATE LIBEL SUIT FILED BY VIRGIN RELATING TO THE COMPUTER EPISODE AND OTHER ALLEGATIONS MR MARSHALL RESPONDED ONLY BRIEFLY TO VIRGIN'S LATEST ALLEGATIONS MADE ON MONDAY THAT BRITISH AIR VIOLATED EUROPEAN COMMUNITY LAWS BY OFFERING UNFAIR INCENTIVES TO TRAVEL AGENTS AND CORPORATIONS THAT DO BUSINESS WITH BRITISH AIR MR MARSHALL CALLED THE CLAIMS VAGUE VIRGIN ASKED THE EC COMMISSION TO INVESTIGATE GERRARD TYRRELL AN ATTORNEY FOR VIRGIN AIR WHO ATTENDED THE MEETING DISMISSED MR MARSHALL'S CRITICISM OF VIRGIN'S REFUSAL TO ALLOW AN IMPARTIAL ARBITRATOR TO INVESTIGATE ITS ALLEGATIONS AND TO ACCEPT BRITISH AIR'S 9 MILLION OFFER TO PUT AN END TO ALL DISPUTES AND RECRIMINATIONS MR TYRRELL REITERATED VIRGIN'S CHARGES THAT BRITISH AIR HIRED A PUBLIC RELATIONS CONSULTANT TO SPREAD FALSE AND DAMNING RUMORS ABOUT VIRGIN IN THE PRESS AND A PRIVATE INVESTIGATOR TO SNOOP ON VIRGIN HE BLAMED BRITISH AIR FOR THE BREAKDOWN OF EARLIER SETTLEMENT TALKS BRIAN BASHAM THE PUBLIC RELATIONS ADVISER FIRED BY BRITISH AIR AFTER VIRGIN FILED SUIT ATTENDED THE ANNUAL MEETING BUT DIDN'T QUESTION THE CHAIRMAN MR BASHAM SUGGESTED LATER IN INTERVIEWS THAT MR MARSHALL AND OTHER EXECUTIVES KNEW MORE ABOUT THE VIRGIN AFFAIR THAN THEY HAVE ACKNOWLEDGED MR BASHAM CALLED ON MR MARSHALL TO RESIGN MR MARSHALL TOLD THE SHAREHOLDERS I STATE FURTHER WITHOUT QUALIFICATION THAT I DID NOT DIRECT AUTHORIZE OR IMPLEMENT ANY IMPROPER ACTIVITIES OR CONDUCT AGAINST VIRGIN HE SAID HE HAD RECEIVED WRITTEN ASSURANCES FROM EVERY BOARD MEMBER AND TWO OTHER SENIOR EXECUTIVES THAT THEY WEREN'T INVOLVED 9307140136 930714 REEBOK TO BUY BACK SHARES STOUGHTON MASS REEBOK INTERNATIONAL LTD SAID ITS BOARD AUTHORIZED AN ADDITIONAL 200 MILLION IN REPURCHASES OF THE COMPANY'S COMMON STOCK TOGETHER WITH UNUSED PREVIOUS AUTHORIZATION THE FOOTWEAR COMPANY SAID IT HAS 217 MILLION AVAILABLE TO BUY BACK SHARES IN THE OPEN MARKET OR IN PRIVATE TRANSACTIONS PAUL FIREMAN REEBOK'S CHAIRMAN SAID IN A STATEMENT THAT BUYING REEBOK SHARES REPRESENTED AN OUTSTANDING INVESTMENT AND THAT THE SHARE PRICE DOES NOT REFLECT THE FAIR VALUE OF OUR BUSINESS REEBOK'S SHARES TRADED AS HIGH AS 3675 APIECE LAST MONTH BEFORE THE COMPANY ANNOUNCED ITS SECONDQUARTER RESULTS WOULD TRAIL ANALYSTS ESTIMATES THE SHARES WERE QUOTED IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AT 27625 DOWN 125 CENTS A SHARE 9307140135 930714 ALEXANDER & ALEXANDER PURCHASE NEW YORK ALEXANDER & ALEXANDER SERVICES INC SAID IT AGREED TO BUY A MAJORITY INTEREST IN ASESORES KENNEDY AGENTE DE SEGUROS SA A MEXICAN INSURANCE BROKER TERMS WEREN'T DISCLOSED ALEXANDER & ALEXANDER AN INSURANCE BROKERAGE AND MANAGEMENT CONSULTING COMPANY SAID ASESORES KENNEDY AGENTE DE SEGUROS HAS EIGHT OFFICES IN MEXICO THE TRANSACTION IS EXPECTED TO CLOSE NEXT MONTH 9307140134 930714 TECHNOLOGY CYPRESS TO SHIP CARDS TO IBM SAN JOSE CALIF CYPRESS SEMICONDUCTOR CORP SAID IT EXPECTS TO SHIP AN ESTIMATED 20 MILLION OF COMPUTER MEMORY CARDS IN THE NEXT YEAR FOR USE IN AN INTERNATIONAL BUSINESS MACHINES CORP LINE OF PERSONAL COMPUTERS THE VOLUME SHIPMENTS OF THE HIGHPERFORMANCE CARDS WHICH ARE MODULES THAT CONTAIN CHIPS THAT ACT AS THE BRAINS OF PCS IS BEGINNING UNDER A RECENT AGREEMENT BETWEEN CYPRESS AND IBM ARMONK NY THE CARDS ARE BEING USED FOR IBM'S PS/VALUEPOINT PC LINE 9307140133 930714 INTERNATIONAL SWITZERLAND'S ROCHE SEES SIGNIFICANT RISE IN EARNINGS FOR 1993 IN 1992 ROCHE'S NET INCOME SURGED 29 TO 19 BILLION SWISS FRANCS 124 BILLION ROCHE DOESN'T PUBLISH EARNINGS ON A HALFYEARLY OR QUARTERLY BASIS BUT THE COMPANY DISCLOSED THAT ITS CONSOLIDATED SALES ROSE 8 IN THE FIRST HALF OF 1993 TO 715 BILLION FRANCS FROM 662 BILLION FRANCS A YEAR EARLIER THIERRY HERTIG AN ANALYST AT DARIER HENTSCH & CIE SAID THE SIXMONTH RESULTS ARE SLIGHTLY ABOVE EXPECTATIONS THE OPERATING SIDE OF ROCHE IS VERY STRONG THE COMPANY ALSO SAID ITS DRUG DIVISION SHOWED CONTINUED HEALTHY GROWTH WITH SALES RISING 12 TO 39 BILLION FRANCS DESPITE ROCHE'S BULLISH ANNOUNCEMENT ANALYSTS SAID THEY ARE CAUTIOUS ON THE COMPANY'S STOCK MAINLY BECAUSE IT HAS RISEN SO MUCH ALREADY SINCE THE START OF THE YEAR ROCHE BEARER SHARES HAVE RISEN BY 50 WHILE THE MORE FREQUENTLY TRADED NONVOTING DIVIDENDRIGHTS CERTIFICATES HAVE RISEN 24 IN HEAVY TRADING ON THE ZURICH STOCK EXCHANGE YESTERDAY THE CERTIFICATES GAINED 40 FRANCS TO CLOSE AT 5170 FRANCS 9307140132 930714 INTERNATIONAL EC PANEL OFFERS TO EXTEND BAN ON BOVINE HORMONE BRUSSELS THE EUROPEAN COMMUNITY COMMISSION PROPOSED A SEVENYEAR BAN ON THE USE OF A HORMONE KNOWN AS BOVINE SOMATOTROPHIN OR BST WHICH INCREASES COWS' MILK PRODUCTION THE MOVE WHICH MUST BE APPROVED BY EC MINISTERS EXTENDS A TWOYEAR MORATORIUM THAT RUNS OUT AT THE END OF THE YEAR THE COMMISSION SAID THE DECISION WAS BASED ON POLICY REASONS RATHER THAN SAFETY FEARS USE OF BST WHICH INCREASES MILK PRODUCTION BY 6 TO 20 RUNS COUNTER TO THE EC'S AIM OF CURBING EXCESS MILK PRODUCTION THE COMMISSION SAID MOREOVER BST COULD ADD TO THE EC'S 11 MILLION TONS OF SURPLUS BEEF BECAUSE FARMERS LIKELY WOULD REPLACE SLAUGHTERED MILK COWS WITH ANIMALS USED TO PRODUCE BEEF THE EC HAS ABOUT 330000 TONS OF SURPLUS DAIRY PRODUCTS THE COMMISSION ALSO SAID STUDIES HAVE SHOWN CONSUMER RESISTANCE TO BST RAISING THE POSSIBILITY THAT THE DRUG'S AUTHORIZATION WOULD RESULT IN A DECLINE IN BEEF AND MILK CONSUMPTION THE COMMISSION SAID THE DRUG MET THE EC'S CRITERIA ON SAFETY QUALITY AND EFFICACY AND WOULD NOT RAISE ETHICAL OBJECTIONS THE DECISION IS A BLOW TO MONSANTO CO AND ELI LILLY & CO WHICH HAVE DEVELOPED HORMONES THAT PROMOTE MILK PRODUCTION THE US ALSO HAS A MORATORIUM ON THE USE OF THE HORMONE BST A HORMONE USED TO INCREASE THE PRODUCTION OF MILK IN CATTLE IS AWAITING APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION FOR USE IN THE US IN AN ARTICLE YESTERDAY IT WAS INCORRECTLY STATED THAT THE U S HAS A MORATORIUM ON THE USE OF THE HORMONE 9307140131 930714 LETTERS TO THE EDITOR FEDS SWOOP DOWN ON LEMONADE RACKET YOUR JUNE 18 EDITORIAL ABOUT THE SOMETIMES HEAVYHANDED ARM OF GOVERNMENT STIFLING THE ENTREPRENEURIAL BEGINNINGS OF A TEENAGER VIVIDLY REMINDED ME OF A SIMILAR INCIDENT ABOUT EIGHT YEARS AGO WHILE LIVING IN THE HEART OF DOWNTOWN WASHINGTON MY 13YEAROLD SON THADDEUS HAD SOME TIME DURING THE SUMMER AND DECIDED TO START A GOOD OLD AMERICAN LEMONADE STAND WITH A HEIGHTENED ENTREPRENEURIAL SPIRIT AND LIVING ONLY A COUPLE OF BLOCKS AWAY FROM ONE OF THE BUSIEST SIDEWALKS IN WASHINGTON THADDEUS BUILT AND PAINTED A WOODEN BOX ON WHEELS I ONLY HELPED HIM SCREW THE CASTERS TO THE BOX PAINTED LEMONADE ON THE FRONT BOUGHT LEMONS FROM THE LOCAL GROCER BY THE CASE AT DISCOUNT PURCHASED A HAND CITRUS SQUEEZER AND CUPS ALONG WITH THE OTHER INGREDIENTS SUGAR ICE AND WATER AND PULLED HIS LITTLE WAGON THE TWO BLOCKS TO THE CORNER OF 19TH AND M STREETS NW WITH A LOT OF HARD WORK A GOOD PRODUCT DURING A HOT SUMMER AND A GREAT LOCATION HE DID VERY WELL FOR A COUPLE OF DAYS HE MADE AS MUCH AS 130 A DAY AND EVEN HAD A NEIGHBORHOOD FRIEND HELPING HIM IT WAS ICE COLD FRESH SQUEEZED LEMONADE AND PEOPLE LOVED IT FOR A COUPLE OF WEEKS EVERY SUNNY DAY THADDEUS WAS OUT THERE ESPECIALLY AROUND LUNCH TIME THEN ONE DAY A DC HEALTH INSPECTOR HAPPENED TO WALK BY AND THAT WAS THAT WITH A LIST OF REASONS WHY THADDEUS DID NOT HAVE THE NECESSARY VENDING FOODHANDLING AND OTHER LICENSES AND PERMITS AND SOME LEGAL THREATS THAT THADDEUS COULD NOT UNDERSTAND OTHER THAN TO GET HIS WAGON HOME WITHOUT DELAY HIS BUSINESS WAS CLOSED PERMANENTLY WHILE I HAD VISIONS OF THE SUPREME COURT DECIDING WHETHER EVERY AMERICAN CHILD HAS A RIGHT TO RUN A LEMONADE STAND IN REALITY THADDEUS WAS SUPPOSED TO LEAVE FOR CAMP IN A FEW DAYS ANYWAY SO IT WAS SOON FORGOTTEN BY THE NEXT SUMMER SOMEWHAT AFRAID OF THE LEGAL PROBLEMS HE LOOKED FOR OTHER OPPORTUNITIES TO EARN MONEY EVERYONE IS AFRAID THAT SOME PARENTS WILL PUSH CHILDREN INTO CHILD LABOR SITUATIONS BUT WHEN THE CHILDREN GO AFTER THEIR OWN DREAMS JUST LIKE THADDEUS OR MONIQUE IN YOUR EDITORIAL IT'S A SHAME THE GOVERNMENT CAN'T FIND A WAY TO GIVE SOME ENCOURAGEMENT 9307140130 930714 MERRILL LYNCH PAINEWEBBER POST RECORD NET FOR FIRST HALF AS BROKERS' GOOD TIMES CONTINUE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO AND PAINEWEBBER GROUP INC POSTED RECORD EARNINGS FOR THE FIRST HALF OF 1993 SIGNALING THAT WALL STREET'S 2 1/2YEAR PROFIT PARTY ROLLS ON THE TWO COMPANIES THE LARGEST AND FIFTHLARGEST US SECURITIES BROKERS RESPECTIVELY WERE THE FIRST OUT OF THE GATE WITH WHAT IS LIKELY TO BE A SERIES OF BLISTERING SIXMONTH EARNINGS REPORTS FROM AN INDUSTRY FLUSH WITH NEW STOCK AND BOND ISSUES FOR THE SECOND QUARTER BOTH MERRILL AND PAINEWEBBER SHOWED STRONG GAINS FROM LAST YEAR'S SECOND QUARTER BUT WERE DOWN SLIGHTLY FROM THE FURIOUS FIRSTQUARTER PACE FOR EXAMPLE BOTH COMPANIES MADE LESS MONEY IN THEIR CORE INVESTMENT BANKING BUSINESS THE CRUCIAL QUESTION FOR THE INDUSTRY IS WHETHER THAT DROPOFF IS SIMPLY THE TRADITIONAL SEASONAL DECLINE AFTER A BURST OF NEWYEAR ACTIVITY OR A SIGN THAT THE SPECTACULAR UNDERWRITING BOOM HAS FINALLY PEAKED I DON'T THINK YOU CAN DRAW ANY BIG CONCLUSIONS SAID DONALD MARRON PAINEWEBBER'S CHAIRMAN YOU'VE GOT SHIFTS OF PEOPLE GOING FROM BEING SPENDERS TO BEING SAVERS AND FROM SAVERS TO INVESTORS AND THEY'RE COMING TO THIS INDUSTRY EVEN IF INTEREST RATES EDGE HIGHER AND THE STOCK MARKET HEADS LOWER THE INDUSTRY'S ASSET GROWTH DURING WALL STREET'S BOOM WILL CARRY IT THROUGH LEANER TIMES HE ARGUED DANIEL TULLY CHAIRMAN OF MERRILL LYNCH SAID WE ARE DELIGHTED THAT THE SECOND QUARTER WAS AS STRONG AS IT WAS MERRILL'S SECONDQUARTER NET ROSE 53 TO 345 MILLION OR 305 A SHARE FROM 2262 MILLION OR 197 A SHARE A YEAR EARLIER PAINEWEBBER POSTED A GAIN QUARTERTOQUARTER OF 30 REPORTING NET INCOME OF 593 MILLION OR 111 A SHARE PRIMARY COMPARED WITH 458 MILLION OR 93 CENTS A SHARE IN LAST YEAR'S SECOND QUARTER THE FIRMS' RETAIL BROKERAGE NETWORKS EARNED THEIR KEEP COMMISSION INCOME SPURTED 17 AND 23 AT MERRILL LYNCH AND PAINEWEBBER RESPECTIVELY AT THE TWO FIRMS BUT COMPENSATION AND BENEFITS HELD FAIRLY STEADY AS A PERCENTAGE OF TOTAL COSTS ANALYSTS SAY THE THIRD QUARTER OF 1993 MAY PROVE TO BE THE TRUE TEST FOR SECURITIES FIRMS IF AS SOME EXPECT THE FLOW OF MONEY INTO THE INDUSTRY SLOWS AS INVESTORS APPROACH THE SATURATION POINT ONE OF THE THINGS THIS INDUSTRY HAS BEEN DOING BETTER IS GROWING A STABLE BASE OF REVENUES SAID ALISON DEANS ANALYST AT SMITH BARNEY SHEARSON THEY'RE ALSO REALLY KEEPING A LID ON COSTS SHE ADDED AT MERRILL NET REVENUES WERE UP 20 AND EXPENSES UP 13 IN THE 1980S THAT WOULD HAVE BEEN REVERSED DESPITE THE RECORD SIXMONTH RESULTS MERRILL'S STOCK SLIPPED IN NEW YORK STOCK EXCHANGE TRADING CLOSING AT 84625 DOWN 1 MERRILL HIT A RECORD HIGH ADJUSTED FOR STOCK SPLITS OF 85625 ON MONDAY IN BIG BOARD TRADING PAINEWEBBER CLOSED YESTERDAY AT 29 DOWN 125 CENTS IF MERRILL'S GROWTH CONTINUES AT THIS PACE 1993 NET PROFIT OF MORE THAN 1 BILLION WILL EXCEED REVENUE OF MANY OF ITS SMALLER AND MIDSIZE COMPETITORS IN THE BROKERAGE BUSINESS MERRILL'S NET FOR THIS YEAR'S FIRST SIX MONTHS WAS 6874 MILLION OR 607 A SHARE UP 55 FROM 4437 MILLION OR 435 A SHARE IN 1992'S FIRST SIX MONTHS FOR THE SECOND QUARTER MERRILL'S TOTAL REVENUE JUMPED 18 TO 397 BILLION FROM 336 BILLION 1992 RESULTS WERE RESTATED FOR ACCOUNTING CHANGES FOR THE SIX MONTHS MERRILL'S TOTAL REVENUE CAME IN AT 793 BILLION UP FROM 677 BILLION IN THE FIRST SIX MONTHS OF LAST YEAR FOR THE SIX MONTHS PAINEWEBBER'S NET ROSE 8 TO 1302 MILLION OR 243 A SHARE FROM 1201 MILLION OR 247 A SHARE IN THE YEAREARLIER PERIOD PAINEWEBBER'S TOTAL REVENUE FOR THE SECOND QUARTER ROSE TO 9549 MILLION UP FROM 8168 MILLION SIXMONTH REVENUE ROSE TO 189 BILLION FROM 169 BILLION 9307140129 930714 WHO'S NEWS SYNCOR INTERNATIONAL CORP SYNCOR INTERNATIONAL CORP CHATSWORTH CALIF GAIL R WILENSKY WAS ELECTED A DIRECTOR OF THE OPERATOR OF PHARMACY SERVICE CENTERS INCREASING THE BOARD'S TO EIGHT DR WILENSKY 50 YEARS OLD CURRENTLY IS A SENIOR FELLOW AT PROJECT HOPE SHE PREVIOUSLY WAS DEPUTY ASSISTANT TO THE PRESIDENT FOR POLICY DEVELOPMENT IN THE BUSH ADMINISTRATION 9307140128 930714 BUSINESS BRIEF OFFICE DEPOT PLANS 100 MILLION BUYOUT OF CONTRACT STATIONER DELRAY BEACH FLA OFFICE DEPOT INC SAID IT AGREED TO ACQUIRE A CALIFORNIA OFFICESUPPLY COMPANY FOR 8550 A SHARE OR APPROXIMATELY 100 MILLION THE COMPANY EASTMAN OFFICE PRODUCTS CORP IS BASED IN SIGNAL HILL CALIF ACCORDING TO OFFICE DEPOT THE CLOSELY HELD COMPANY WHICH IS MAJORITYOWNED BY MCCOWN DE LEEUW & CO A LEVERAGEDBUYOUT FIRM WITH OFFICES IN NEW YORK AND SAN FRANCISCO REPORTED REVENUE OF 295 MILLION FOR THE FISCAL YEAR ENDED JUNE 30 1992 UNDER THE AGREEMENT EASTMAN A CONTRACT STATIONER OR SUPPLIER PRIMARILY TO MEDIUM AND LARGE BUSINESSES WILL OPERATE AS A SUBSIDIARY OF OFFICE DEPOT EASTMAN HOLDERS CAN ELECT TO RECEIVE EITHER CASH OR OFFICE DEPOT STOCK FOR THEIR SHARES THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE THIRD QUARTER OF THIS YEAR ANALYSTS SAID THE MOVE WAS CONSISTENT WITH OFFICE DEPOT'S DESIRE TO BROADEN ITS RETAILSALES BASE TO INCLUDE MORE CORPORATE OFFICESUPPLY ACCOUNTS IT'S A BUSINESS THAT STILL OFFERS SOME GROWTH PROSPECTS SAID LINDA KRISTIANSEN AN ANALYST AT WERTHEIM SCHRODER & CO IN MAY OFFICE DEPOT COMPLETED THE ACQUISITION OF HOUSTONBASED CONTRACT STATIONER WILSON BUSINESS PRODUCTS IN A STOCK SWAP VALUED AT 15 MILLION STANDARD & POOR'S CORP SAID OFFICE DEPOT'S MOVE PROMPTED THE RATINGS AGENCY TO REVISE ITS OUTLOOK TO NEGATIVE FROM STABLE ON THE COMPANY'S DEBT S&P SAID THE EASTMAN ACQUISITION WOULD DELAY THE RESTORATION OF A MORE CONSERVATIVELY STRUCTURED BALANCE SHEET MEANWHILE THE RATINGS AGENCY MOODY'S INVESTORS SERVICE INC SAID IT WAS REVIEWING OFFICE DEPOT'S LONGTERM DEBT FOR A POSSIBLE DOWNGRADE DUE TO CONCERN THAT THE RETAILER IS BROADENING ITS RISKS SEPARATELY OFFICE DEPOT YESTERDAY REPORTED THAT NET INCOME ROSE 67 IN THE SECOND QUARTER TO 109 MILLION OR 12 CENTS A SHARE FROM 65 MILLION OR SEVEN CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 36 TO 5279 MILLION FROM 3868 MILLION SAMESTORE SALES WERE UP 20 FOR THE 255 STORES OPEN MORE THAN ONE YEAR OFFICE DEPOT HAS 313 STORES AND EIGHT DELIVERY AND CONTRACTSTATIONER WAREHOUSES CURRENTLY OPEN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE OFFICE DEPOT CLOSED AT 2725 A SHARE UP 1 9307140126 930714 UNWED MOTHERS RISE TO 24 OF WOMEN HAVING CHILDREN WASHINGTON ALMOST ONE OUT OF FOUR WOMEN WHO HAD CHILDREN BETWEEN JULY 1991 AND JUNE 1992 WERE UNMARRIED A CENSUS BUREAU STUDY SHOWS ABOUT 24 OF WOMEN WHO HAD A BABY DURING THAT PERIOD WERE SINGLE UP FROM 15 A DECADE EARLIER ACCORDING TO THE REPORT MORE THAN HALF OF ALL BLACK BABIES WERE BORN OUT OF WEDLOCK BETWEEN JULY 1991 AND JUNE 1992 THE STUDY SHOWS OF THE 893000 SINGLE WOMEN WHO HAD CHILDREN 63 WERE UNDER 25 TWO OF EVERY THREE TEENAGERS WHO HAD CHILDREN WERE UNMARRIED 9307140125 930714 MARKETING BY RICHARD GIBSON ORGANICFOOD DEALERS MOVE TO CASH IN ON THE GOVERNMENT'S LATEST PESTICIDE WARNINGS CLINTON ADMINISTRATION OFFICIALS LAST MONTH ANNOUNCED PLANS TO SEEK REDUCED PESTICIDE USE AND A NATIONAL ACADEMY OF SCIENCES REPORT CITED A POTENTIAL CONCERN THAT SOME CHILDREN'S DIETS MAY INCLUDE UNSAFE AMOUNTS OF PESTICIDES THIS IS THE BEST OPPORTUNITY WE'VE HAD SINCE THE ALAR APPLE SCARE IN THE 1980S SAYS DAVID MORTON MARKETING MANAGER FOR ALFALFA'S A CHAIN OF NATURALFOOD STORES BASED IN BOULDER COLO WE'RE TRYING TO GET THE WORD OUT THAT WHAT WE KNEW ALL ALONG IS TRUE THE COMPANY PLANS TO CITE THE ACADEMY'S REPORT IN NEWSPAPER INSERTS NEXT MONTH TO GRAB PARENTS' ATTENTION WHOLE FOODS MARKET IN AUSTIN TEXAS LAST WEEK STARTED AIRING RADIO ADS FEATURING A MOTHER WORRYING ABOUT SAFE FOOD THE COMPANY'S STORES OPERATING UNDER THE BREAD & CIRCUS MRS GOOCH'S WELLSPRING AND WHOLE FOODS NAMES ALSO HAVE POSTCARDS FOR KIDS TO COLOR SIGN AND SEND TO THE WHITE HOUSE THEIR MESSAGE KIDS SHOULD BE ORGANICALLY GROWN ROOTS & FRUITS A MINNEAPOLISBASED PRODUCE COOP SAYS IT'S DISAPPOINTED THE ACADEMY'S REPORT DIDN'T GET MORE LOCAL COVERAGE IN MINNESOTA SO IT IS WORKING WITH A PUBLICRELATIONS SPECIALIST TO STIR UP MEDIA INTEREST GARDEN OF EATIN' A LOS ANGELES MANUFACTURER USED THE REPORT'S PUBLICATION TO ISSUE A THREEPAGE MEDIA ALERT ON ITS ORGANIC BLUECORN CHIPS SALSA AND DIPS MANY MERCHANTS SAY THEY DON'T PLAN TO PLAY THE FEAR CARD WE'VE MOSTLY EMPHASIZED THE POSITIVES OF ORGANIC AGRICULTURE RATHER THAN THE NEGATIVES OF CONVENTIONAL AGRICULTURE AND WILL CONTINUE TO DO SO SAYS SABINE RHYNE MARKETING MANAGER AT NORTHEAST COOPERATIVES BRATTLEBORO VT WHICH DISTRIBUTES PRODUCE AND OTHER ORGANIC ITEMS BUT EARTH'S BEST A BOULDER COLO BABYFOOD MAKER RECENTLY ISSUED A NEWS RELEASE SAYING CHOOSING CONVENTIONAL BABY FOOD IS NOT WORTH THE RISK INDUSTRY LEADER GERBER PRODUCTS RESPONDED NOTING THAT EARTH'S BEST DOESN'T LABEL ITS PRODUCTS PESTICIDEFREE SINCE EVEN ORGANIC GROWERS OFTEN USE SOME PESTICIDES THOUGH NOT SYNTHETIC ONES GERBER ADDS THAT IT HAS LONG REQUIRED GROWERS TO KEEP PESTICIDES TO A NODETECTABLERESIDUE LEVEL COLOR IT NATURAL TINT EXPERTS SAY MOTHER NATURE WILL CONTRIBUTE MANY OF TOMORROW'S HOT HUES MUTED TONES SUCH AS PEBBLE GRAY MOSS AND PURPLE HAZE SHADES ONE MIGHT FIND ON A HIKE IN THE COUNTRY ARE ON THE WAY AND WILL BE SHOWING UP ON HOUSES FURNITURE AND FASHION IN A YEAR OR SO SAYS THE COLOR MARKETING GROUP AN ORGANIZATION OF DESIGNERS AND OTHER SPECIALISTS THAT MAKES ANNUAL COLOR FORECASTS THE NEW PALETTE IS INSPIRED BY NATURE THE EARTH THE WATERS AND THE SKY SAYS LESLIE HARRINGTON COCHAIRWOMAN OF THE GROUP AND A COLOR CONSULTANT WITH THE PAINT COMPANY BENJAMIN MOORE INC WHICH IS ISSUING CHIP SAMPLES OF THE COLORS TO STIMULATE INTEREST BUT HASN'T YET STARTED PRODUCING THEM MS HARRINGTON ADMITS THE NEW HUES AREN'T FOR EVERYONE OR EVERYTHING SOMETIMES THESE EARTHY COLORS DON'T TRANSLATE WELL ON OUTSIDES OF CARS FOR INSTANCE BUT INSIDE THEY DO WASHEDOUT AND FADED COLORS ALSO ARE COMING THE GROUP PREDICTS AMONG THEM ARE GRUNGE DESCRIBED AS A GRAYGREEN TONE OFTEN FOUND ON THRIFTSHOP RACKS CRAFT REMINISCENT OF KRAFTPAPER GROCERY BAGS AND DENIM BUT DON'T THROW AWAY ALL THAT TEAL SOME MCDONALD'S RESTAURANTS IN THE DALLASFORT WORTH AREA ARE DROPPING EARTH TONES IN FAVOR OF BRIGHT PURPLES AND BLUES FOR THE OUTSIDES OF THEIR BUILDINGS ONE MCDONALD'S STORE IN GRAPEVINE TEXAS HAS A WHITE EXTERIOR WITH TURQUOISE TRIM MORE UNHAPPY DINERS ARE ORDERING ANOTHER WAITER WHEN THEY GO OUT TO EAT DISSATISFACTION WITH INEPT OR SURLY SERVERS IS ON THE RISE AND SO IS PATRONS' WILLINGNESS TO FIGHT IT A SURVEY DONE FOR MASTERCARD INTERNATIONAL FINDS 48 OF THOSE INTERVIEWED SAY THEY HAVE THE RIGHT TO DEMAND A DIFFERENT WAITER SERVER TRAITS THAT PIQUE PATRONS INCLUDE UNFAMILIARITY WITH THE MENU AND NOT PROVIDING SEPARATE CHECKS WHEN REQUESTED DINERS ALSO DISLIKE HAVING TO LISTEN TO SPECIALS RATHER THAN READ THEM NINE IN 10 PATRONS SAY THEY ARE ENTITLED TO ASK TO MOVE FOR WHATEVER REASON CUSTOMERS ALSO ARE UNFORGIVING WHEN THEIR TABLE ISN'T READY AT THE RESERVED TIME MASTERCARD SAYS WHAT'S TRIGGERING THIS LOWER TOLERANCE FOR MEDIOCRITY MANY CONSUMERS TODAY FEEL VICTIMIZED BY SOCIETY IN GENERAL SAYS WATTS WACKER OF YANKELOVICH PARTNERS WESTPORT CONN WHICH CONDUCTED THE SURVEY CITING THE MICHAEL DOUGLAS MOVIE FALLING DOWN HE SAYS PEOPLE WILL DO WHATEVER IT TAKES TO AVOID BECOMING A VICTIM AND FOR MANY PEOPLE HE SAYS DINING OUT IS A SPECIAL EVENT A REWARD VEHICLE SO ANYTHING THREATENING THAT PLEASURE IS SUBJECT TO ATTACK THE NATIONAL RESTAURANT ASSOCIATION A TRADE GROUP IN WASHINGTON CITES RESEARCH WITH A MORE POSITIVE SLANT IT SAYS CUSTOMER SATISFACTION WITH TABLESERVICE RESTAURANTS HAS POSTED SIGNIFICANT IMPROVEMENT SIXTYNINE PERCENT OF ADULTS IT SURVEYED LAST YEAR SAID THEY WERE SATISFIED WITH THEIR DINING EXPERIENCES UP FROM 60 IN 1990 SUGGESTING THAT RESTAURATEURS' EMPHASIS ON UPGRADING EMPLOYEE TRAINING AND MOTIVATION IS PAYING OFF STILL THE ASSOCIATION SAYS SLOW AND TOO FRIENDLY SERVICE ARE MAJOR COMPLAINTS AMONG DINERS IT POLLED AND RESTAURANT NOISE IS A PROBLEM WITH HALF OF THOSE IT SURVEYED IOWA PROMOTES SPACE IN STATE PUBLICATIONS AS FERTILE SOIL FOR SALES PITCHES IT'S SOLICITING ADS FOR A VARIETY OF VENUES FROM INCOMETAX INSTRUCTION BOOKLETS TO DRIVERS' LICENSE MANUALS SUGARSUBSTITUTE MAKER NUTRASWEET PUBLISHES A SACCHARINE ROMANCE NOVELLA FOREVER MY SWEET ALONG WITH TWO RECIPE BOOKS DESIGNED TO SATISFY GOURMET PASSIONS 9307140124 930714 BLECH FACES SEC INVESTIGATION OF POSSIBLE STOCK MANIPULATION BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER BIOTECH INVESTOR DAVID BLECH MAY HAVE VIOLATED SECURITIES LAWS BY BESTOWING CHEAP STOCK ON MONEY MANAGERS AND OTHERS PRIOR TO PUBLIC OFFERINGS ACCORDING TO INDIVIDUALS FAMILIAR WITH THE INQUIRY THE SEC'S ENFORCEMENT UNIT IS TRYING TO DETERMINE WHETHER MR BLECH'S STOCK SALES STRATEGY RESULTED IN STOCK MANIPULATION IN THE PAST MR BLECH SOLD CHEAP STOCK AND WARRANTS TO BROKERS AND INFLUENTIAL WALL STREET EXECUTIVES WHO THEN HAD A VESTED INTERESTED IN PROMOTING HIS DEALS TO INVESTORS MR BLECH 37 YEARS OLD HEADS NEW YORKBASED D BLECH & CO A BROKERAGE FIRM HIS FORTUNE WHICH HE PUTS AT MORE THAN 300 MILLION WAS AMASSED BY STARTING BIOTECHNOLOGY COMPANIES AND FINANCING DISTRESSED ONES MR BLECH GAVE TESTIMONY TO THE SEC EARLIER THIS YEAR IN WHICH HE DENIED ANY WRONGDOING ACCORDING TO INDIVIDUALS FAMILIAR WITH THE CASE WE HAVE COOPERATED FULLY WITH THE SEC'S INQUIRY SAID IRA SORKIN THE NEW YORK ATTORNEY WHO IS REPRESENTING MR BLECH MR SORKIN SAID THE SEC'S INQUIRY WAS BEGUN IN RESPONSE TO A PAGE ONE STORY IN THIS NEWSPAPER IN MAY 1992 THERE WERE INACCURACIES IN THE ARTICLE THAT APPEARED IN THE WALL STREET JOURNAL HE ADDED DECLINING TO ELABORATE THAT ARTICLE DETAILED A PATTERN IN WHICH MR BLECH WOULD SELL CHEAP FOUNDERS STOCK OFTEN AT PENNIES A SHARE TO DOZENS OF INDIVIDUALS WHO MIGHT BE IN A POSITION TO HELP HIM ONCE THE STOCK WAS SOLD TO THE PUBLIC AMONG THOSE MR BLECH ACKNOWLEDGED SELLING CHEAP STOCK OR WARRANTS TO WERE A MONEY MANAGER PUBLICISTS AN INVESTMENT BANKER AND BROKERS MR BLECH SAID IN THE MAY 1992 STORY THAT HE GAVE BROKERS WARRANTS IN ADDITION TO A STANDARD COMMISSION BECAUSE THIS IS A WAY OF INDUCING BROKERS TO WORK ON OUR DEALS THESE GIFTS WERE USUALLY NOT DISCLOSED TO INVESTORS SECURITIES LAWYERS HAVE QUESTIONED MR BLECH'S GRANTS OF CHEAP STOCK AND WARRANTS BRUCE MANN A SAN FRANCISCO SECURITIES LAWYER SAID THAT GIVING WARRANTS TO BROKERS COULD CREATE AN INCENTIVE FOR THE BROKERS TO SELL SHARES TO INVESTORS WHO WOULDN'T IMMEDIATELY RESELL THEM THEREBY PUSHING UP THE MARKET PRICE SOME INDIVIDUALS WITH KNOWLEDGE OF THE CASE SAID MEMBERS OF THE SEC ENFORCEMENT STAFF ARE SEEKING TO SHOW THAT RECIPIENTS WERE EXPECTED TO PROVIDE SOMETHING IN RETURN FOR THE CHEAP STOCK THEY ARE CONTINUING TO TAKE TESTIMONY FROM RECIPIENTS IF THE SEC FINDS THAT THESE RECIPIENTS HELPED MR BLECH SELL HIS DEALS IN EXCHANGE FOR CHEAP STOCK AND WARRANTS THAT WOULD CLEARLY BE A FRAUD ONE INDIVIDUAL WITH KNOWLEDGE OF THE PROBE SAID SEC OFFICIALS DECLINED TO COMMENT ON THE MATTER MR BLECH HOLDS OR HAS HELD STAKES IN MORE THAN 20 BIOTECH COMPANIES INCLUDING ARIAD PHARMACEUTICALS INC ICOS CORP ECOGEN INC AND NEORX CORP 9307140123 930714 WHO'S NEWS HOWARD TO TAKE OVER TWA'S CONTROLS AS IT COMES OUT OF BANKRUPTCY PROTECTION BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER A SIXYEAR ABSENCE AND SEVERAL FAILED PLOTS TO RETURN WILLIAM R HOWARD IS FINALLY BACK IN THE AIRLINE BUSINESS AS EXPECTED MR HOWARD 71 YEARS OLD YESTERDAY WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF TRANS WORLD AIRLINES EFFECTIVE WHEN TWA EMERGES FROM CHAPTER 11 BANKRUPTCYCOURT PROTECTION LATER THIS SUMMER MR HOWARD HAD THE SAME TITLES AT PIEDMONT AVIATION INC BEFORE IT WAS ACQUIRED BY USAIR GROUP INC IN 1987 BUT THE SIMILARITIES END THERE TWA IS NOT PIEDMONT AND THE INDUSTRY IS NOT THE SAME AS WHEN HE WAS RUNNING PIEDMONT SAYS RAYMOND NEIDL A HIGHYIELD BOND ANALYST AT FURMAN SELZ INC WHO FOLLOWS THE AIRLINE INDUSTRY INDEED PIEDMONT WAS SUCCESSFUL TWA IS STRUGGLING THE AIRLINE INDUSTRY WAS PROFITABLE IN 1987 AND IT IS LOSING POTS OF MONEY TODAY MR HOWARD WHO SAYS HIS GOAL IS TO MAKE TWA PROFITABLE SAYS HE HAS A LONG LIST OF THINGS TO INVESTIGATE TO MAKE SURE THE SCALEDDOWN TRANS WORLD IS OPERATING AS IT SHOULD BUT HE WASN'T DWELLING ON ITS WEAKNESSES YESTERDAY HE TALKED OF HIS RECENT UNANNOUNCED VISITS TO THE AIRLINE'S HUBS IN ST LOUIS AND NEW YORK'S JFK INTERNATIONAL AIRPORT WHERE HE FOUND CLEAN PLANES AND ENTHUSIASTIC WORKERS THIS LOOKED TO ME LIKE A REAL OPPORTUNITY THAT WAS ACCOMPLISHABLE HE SAID IN A TELEPHONE INTERVIEW FROM TWA HEADQUARTERS IN MOUNT KISCO NY I'M NOT INTERESTED IN TAKING ANYTHING ON THAT COULDN'T BE ACHIEVED HE IS FUZZIER ON HOW HE WILL GET THERE DESPITE TWA'S LOWER COSTS BECAUSE OF CONCESSIONS FROM ITS UNIONS AND OTHERS MR HOWARD SAYS HE ISN'T INTERESTED IN HAVING TWA BE A CUTRATE CARRIER TWA WILL BE A FULLFARE FULLSERVICE CARRIER HE SAYS DECRYING SOME MADNESS IN FARECUTTING OF RECENT YEARS TWA ALSO SAID YESTERDAY THAT ROBIN WILSON AND GLENN ZANDER THE CURRENT COCHIEF EXECUTIVES WILL STAY ON AS VICE CHAIRMEN ALONG WITH MR HOWARD THEY WILL OCCUPY THE THREE BOARD SEATS DESIGNATED FOR THE AIRLINE'S MANAGEMENT TWA SAID THAT BECAUSE OF THE EXECUTIVE CHANGES THE BANKRUPTCY COURT OVERSEEING ITS REORGANIZATION HAS AGREED TO DEFER TO AUG 11 A HEARING TO CONFIRM THE REORGANIZATION PLAN PREVIOUSLY SET FOR TOMORROW BUT THERE WAS ANOTHER REASON FOR THE DELAY ALTHOUGH MORE THAN 90 OF EACH GROUP OF TWA'S UNSECURED CREDITORS VOTED IN FAVOR OF THE PLAN THE AIRLINE IS STILL TRYING TO LINE UP FINANCING FOR WORKING CAPITAL AFTER ITS EMERGENCE FROM BANKRUPTCY PROTECTION IT HAS TRIED TO GET COMMITMENTS FROM NEW YORK'S PORT AUTHORITY THE STATE OF MISSOURI AND THE CITY OF ST LOUIS AMONG OTHERS DAVID KURTZ THE AIRLINE'S BANKRUPTCY COUNSEL SAID HE'S VERY CONFIDENT THE AIRLINE WILL GET THE FINANCING IN THE NEAR FUTURE ALTHOUGH TWA EXPECTS TO CONTINUE LOSING MONEY THIS YEAR AND NEXT IT BOASTS OF MAKING BIG STRIDES SINCE THE DEPARTURE THIS YEAR OF CARL ICAHN THE FORMER CHAIRMAN THE AIRLINE'S ONTIME PERFORMANCE HAS IMPROVED PASSENGER COMPLAINTS ARE STILL A PROBLEM BUT THEY HAVE DECLINED IT'S A SURPRISINGLY GOOD AIRLINE IN MY VIEW GIVEN THE DIFFICULTIES IT'S HAD AND THE FACT THAT IT HAS NOT ALWAYS BEEN LOVED BY THE PEOPLE WHO OWN IT SAYS MR HOWARD BUT THE CARRIER ALSO HAS DEEPER PROBLEMS THAT CAUSE SOME COMPETITORS TO WONDER HOW LONG IT CAN LAST TWA SUFFERS A FLIMSY ROUTE SYSTEM A ST LOUIS HUB THAT FACES COMPETITION FROM STRONGER HUBS IN PLACES LIKE CHICAGO AND DALLAS AND A HIGHLY LEVERAGED BALANCE SHEET EVEN AFTER CUTTING DEBT AND COSTS THE AIRLINE'S PLANS CALL FOR LONGTERM DEBT OF 1 BILLION UPON EMERGENCE FROM BANKRUPTCY PROTECTION AND JUST 81 MILLION IN EQUITY THAT DOESN'T LEAVE MUCH ROOM FOR ERROR IF FARE WARS ERUPT OR TRAVEL FALLS OFF SHARPLY IT'S GOING TO BE A TOUGH HAUL IF THE ECONOMY DOESN'T COOPERATE SAYS MR NEIDL THE ANALYST 9307140122 930714 WHO'S NEWS XEROX CORP XEROX CORP STAMFORD CONN JAMES H LESKO 42 YEARS OLD WAS ELECTED A VICE PRESIDENT OF THIS MAKER OF BUSINESS MACHINES FOLLOWING HIS APPOINTMENT LAST MONTH AS SENIOR VICE PRESIDENT OF FIELD OPERATIONS FOR THE US MARKETING GROUP IN THE FIELD OPERATIONS POSITION HE REPLACES CHARLES OTTO 52 WHO RETIRED MR LESKO HAD BEEN PRESIDENT OF THE PERSONAL DOCUMENT PRODUCTS DIVISION THAT POSITION HAS NOT BEEN FILLED 9307140121 930714 MARKETING & MEDIA DES MOINES REGISTER PRINTS AT JOURNAL'S PLANT IN IOWA NEW YORK THE DES MOINES REGISTER HAMPERED BY FLOODWATERS IS BEING PRINTED AT DOW JONES & CO'S WALL STREET JOURNAL PLANT IN WEST DES MOINES IOWA THE REGISTER'S BUILDING SITUATED IN HARDHIT DOWNTOWN ISN'T FLOODED BUT WITH THE CITY WATER SYSTEM SHUT DOWN THE PAPER HAS NO WATER AVAILABLE FOR THE PRINTING PROCESS SPRINKLERS COOLING OR RESTROOMS SAID PETER RELYEA PRODUCTION MANAGER AT THE JOURNAL PLANT WHICH IS ABOUT SEVEN MILES FROM THE REGISTER'S BUILDING THE REGISTER A GANNETT CO PAPER PRINTED AN EIGHTPAGE EDITION MONDAY AT THE IOWA CITY PRESSCITIZEN ANOTHER GANNETT PAPER BUT THEN MR RELYEA OFFERED THE JOURNAL'S FACILITIES WHICH WERE MUCH CLOSER THE REGISTER PRINTED 126000 COPIES OF A 44PAGE EDITION YESTERDAY AND A 68PAGE PAPER FOR TODAY THE ARRANGEMENT IS EXPECTED TO CONTINUE UNTIL SUNDAY BUT PLANNING IS DAYTODAY HOURTOHOUR MR RELYEA SAID 9307140120 930714 LEISURE & ARTS AN INUIT ARTIST'S SELFPORTRAIT IN STONE BY NEIL ULMAN YELLOWKNIFE NORTHWEST TERRITORIES IN THE MYTHOLOGY OF THE INUIT ONCE CALLED ESKIMO SHAMANS AND SPIRITS REGULARLY CHANGE THEIR SHAPES ASSUMING THE FORMS OF BEARS OWLS EAGLES WALRUSES FISH AND OTHER CREATURES SO WHEN THE YOUNG INUIT SCULPTOR ANGUS COCKNEY KAANERK CROSSCOUNTRY SKIED FOR 56 DAYS TO THE NORTH POLE IN 1989 HIS OWN TRANSFORMATION WAS NATURAL MENTALLY MY FOCUS WAS LIKE THE EYES OF AN EAGLE I WAS DETERMINED KEEN AND ALWAYS ALERT HE WROTE OF THE EXPEDITION PHYSICALLY MY LEGS HAD THE STRENGTH AND AGILITY OF A POLAR BEAR I CARRIED AND PULLED UP TO 100 POUNDS OF SUPPLIES THIS WEIGHT WAS THE SOURCE OF MUCH INNER PAIN BUT KAANERK STILL CARRIED ON BEHIND WHAT HE DESCRIBED AS A MASK OF COMPOSURE KAANERK'S SELFPORTRAIT IN STONE DEPICTING ALL THIS LIES BOTH WITHIN AND BEYOND THE INUIT TRADITION THAT DUALITY DESCRIBES MOST OF HIS WORK AND MAKES HIM SOMETHING OF A LONER ON THE FRINGES OF THE ARCTIC FRATERNITY OF CARVERS HIS WORK HAS A SQUAT SOLID ROUNDEDNESS THAT IMMEDIATELY IDENTIFIES IT AS INUIT THE FORM GREW OUT OF ROUNDED FIGURES OF ANIMALS OR PEOPLE CARVED AS GOODLUCK CHARMS WHICH A HUNTER COULD CARRY IN THE POCKET OF HIS SEALSKIN ANORAK WHEN THE WHITE MAN PENETRATED THE NORTH AND SAW THE SOLID GRACE POWER AND SOMETIMES WHIMSY OF THESE IMAGES HE TRADED FOR THEM BY THE 1960S A REGULAR MARKET FOR INUIT ART BECAME ESTABLISHED AND MANY INUIT TURNED TO CARVING FULLTIME FOR THEIR LIVELIHOOD THEIR WORK IDENTIFIES WITH A HARSH EXISTENCE AND DEPENDENCE ON GAME A LIFE THAT HAS FADED AS MOST INUIT HAVE FORSAKEN NOMADIC LIVES TO LIVE IN GOVERNMENTSUBSIDIZED VILLAGES THE NEW ART MADE BY PEOPLE SINGING OF WHAT THEY NO LONGER ARE CONTAINS AN ELEMENT OF TRAGEDY AND IRONY WROTE ONE CANADIAN OF THE 1989 MASTERS OF ARCTIC EXHIBIT AT THE UNITED NATIONS KAANERK BORN 36 YEARS AGO IN TUKTOYAKTUK POPULATION 929 AT THE EDGE OF THE BEAUFORT SEA SINGS IN STONE OF HIS MODERN INUIT EXPERIENCE PITTING THE TRADITIONAL VALUES OF RESILIENCE ENDURANCE AND STOICISM AGAINST THE DISLOCATIONS OF A FASTCHANGING WORLD HE CAPTURES MODERN THEMES HIS 13INCHHIGH NORTH POLE MAN STANDS ON THE SOLID DEEPLY BENT KNEES OF A CROSSCOUNTRY SKIER/POLAR BEAR THE HEAD IS A FIERCELY DETERMINED EAGLE VIEWED FROM THE FIGURE'S LEFT THE FORWARD LEAN OF THE TRUNK AND THRUST OF THE LEGS BALANCE A HEAVY BACKPACK VIEWED FROM THE RIGHT THE PACK IS A HUMAN FACE IN PROFILE WEEPING IN PAIN BUT NEXT TO IT MELDED IN THE EAGLE'S HEAD IS THE STOIC MASK OF COMPOSURE THE OTHER GUYS ON THE EXPEDITION THOUGHT THAT BECAUSE I WAS INUIT I WAS NEVER COLD OR TIRED BUT I WAS FULL OF PAIN AND STRESS KAANERK RECALLED RECENTLY HERE IN YELLOWKNIFE WHERE HE LIVES WITH HIS WIFE AND TWO CHILDREN WORKING AS A VIDEO PRODUCER ON ENVIRONMENTAL ISSUES FROM HIS VILLAGE ABOVE THE ARCTIC CIRCLE AT THE EDGE OF A FROZEN SEA KAANERK WAS REMOVED AT AGE SIX FOR 10 MONTHS OF THE YEAR TO ATTEND SCHOOL IN INUVIK POP 2773 HE WAS ORPHANED AT AGE EIGHT AND LIVED FIRST WITH GRANDPARENTS THEN WITH AN AUNT AND UNCLE IN INUVIK THERE HE BECAME A WHIZBANG CROSSCOUNTRY SKI RACER AND WAS SENT FOR GRADES 11 AND 12 TO MCBRIDE BRITISH COLUMBIA TO STUDY AND TRAIN WITH THE CANADIAN NATIONAL SKI TEAM HE HELD THE NATIONAL JUNIOR TITLES AT 10 AND 15 KILOMETERS FROM 19751977 INTERNATIONAL COMPETITION MEANT TRAVEL THROUGHOUT CANADA THE US AND SCANDINAVIA I VISITED LOTS OF ART GALLERIES IN EVERY CITY AND TOWN AND I LOOKED AT THE NORTHERN SCULPTURE KAANERK RECOUNTS I ALWAYS THOUGHT I WOULD CARVE ONE DAY IT WAS JUST A MATTER OF TIME HE RETIRED FROM RACING IN 1981 AND IN 1988 SUCCUMBED TO AN URGE TO GO BACK TO TUKTOYAKTUK AS A LAND ADMINISTRATOR THERE WITH PLENTY OF TIME AT LAST HE CARVED A POLAR BEAR OUT OF ICE FOR HIS NEPHEWS JUST TO SEE IF I COULD DO IT JUDGING THE RESULT POSITIVE HE SET ABOUT ACQUIRING STONE NOTHING IS MORE TRADITIONAL IN INUIT CARVING THAN THE POLAR BEAR A RESPECTED ADVERSARY AT THE TOP OF THE FOOD CHAIN MOST FIGURES DEPICT A BEAR WHOLE WALKING STALKING SITTING PERHAPS WITH A CUB OR TWO BUT KAANERK SHOWED A POLAR BEAR DIFFERENTLY AS ICEWALKER A LIFESIZE SHAGGY HEAD CHISELED OUT OF WHITE ALABASTER RISES THROUGH THE ICE EYES FIXED ON THE SKY MOUTH DRAWN BACK TO DISPLAY FIERCE TEETH KAANERK'S WALRUS WALKING BEAR AND MUSK OX FACE ARE IMPRESSIONISTIC RENDERINGS IN STONE OF SUBJECTS THAT TRADITIONAL CARVERS STILL PRESENT REALISTICALLY OR PRIMITIVELY BUT AN ANGUISHED HUMAN FACE IN SOAPSTONE TEARS FLOWING MOUTH TURNED DOWN IN GRIEF IS SOMETHING ELSE THE WOE IS BROADLY DRAWN AS IN A TRAGIC MASK AND THAT PARTAKES OF TRADITION BUT THE SOAPSTONE IS UNFINISHED AND SCRAWLED IN TORTURED ENGLISH SCRIPT ON A FLAT SURFACE BEHIND THE HEAD IS THE CRI DE COEUR I CAN'T SPEAK MY LANGUAGE IT EXPRESSES THE LONELINESS KAANERK FELT WHEN INUIT IN THE EASTERN ARCTIC ADDRESSED HIM IN THE NATIVE TONGUE THEN THE WORLDTRAVELED SKIER CUT OFF FROM HIS LANGUAGE AND REACHING FOR A CONNECTION THROUGH HIS ART HAD TO SAY SPEAK ENGLISH PLEASE THE GRIEVING MAN IS MORE THAN THE INUIT WHO SEES HIS PEOPLE'S WAY OF LIFE DISAPPEARING WITHIN TWO GENERATIONS HIS LAMENT IS MODERN MAN'S CUT OFF FROM HIS ROOTS BY TECHNOLOGYDRIVEN SOCIAL CHANGE SO THAT HE NO LONGER KNOWS WHO HE IS IN A MARKET THAT FAVORS EVOCATION OF THE OLD WAYS AND NOT OF THEIR DESTRUCTION THIS IS A THEME THAT SEPARATES KAANERK SOMETIMES UNCOMFORTABLY FROM MAINSTREAM NORTHERN CRAFTSMEN BUT A MAN WHO WILL SKI TO THE NORTH POLE IS CLEARLY WILLING TO SET BIG GOALS QUIET SLIGHT ATHLETIC AND FIERCELY DETERMINED KAANERK LETS HIS SKIS AND ART SPEAK FOR HIM IN 1995 HE HAS BEEN INVITED TO TREK WITH WILL STEGER'S INTERNATIONAL ARCTIC PROJECT FROM RUSSIA TO TUKTOYAKTUK VIA THE NORTH POLE NEXT STOP FLORENCE MICHELANGELO IS MY IDOL HE SAYS I WANT TO GO TO FLORENCE TO SEE HIS WORK I HAVE OBTAINED SOME CARRARA MARBLE JUST TO GET MY HANDS ON WHAT HE WORKED WITH SOME SCULPTURE SPEAKS EVERYBODY'S LANGUAGE MR ULMAN IS A REPORTER FOR THE JOURNAL IN NEW YORK 9307140119 930714 WHO'S NEWS MARSH & MCLENNAN COS MARSH & MCLENNAN COS NEW YORK PUTNAM INVESTMENTS THE MONEY MANAGEMENT UNIT OF THIS INSURANCE BROKERAGE AND CONSULTING FIRM NAMED PETER CARMAN 52 YEARS OLD SENIOR MANAGING DIRECTOR AND CHIEF OF GLOBAL EQUITY INVESTMENTS RESPONSIBLE FOR NEARLY 23 BILLION IN EQUITIES UNDER MANAGEMENT HE SUCCEEDS FRANCIS HM KELLY 56 WHO IS RETIRING MR CARMAN HAD BEEN CHIEF INVESTMENT OFFICER AT SANFORD C BERNSTEIN & CO 9307140118 930714 WHAT'S NEWS WORLDWIDE NEW RAINS POUNDED THE MIDWEST AND CLINTON PREPARED TO FLY THERE TODAY MORE HEAVY RAINFALL HIT ALREADYSATURATED PARTS OF THE MIDDLE WEST WHILE THE SWOLLEN MISSISSIPPI RIVER SURGED AGAINST LEVEES DOWNSTREAM AND TORE LOOSE BARGES THE PRESIDENT ANNOUNCED THAT HE WOULD VISIT THE REGION ON HIS WAY BACK TO WASHINGTON FROM HAWAII THIS DISASTER IS GETTING WORSE BY THE HOUR ILLINOIS GOV EDGAR SAID THE EXTRA RAIN THREATENED EFFORTS TO RESTORE DRINKING WATER TO MORE THAN 250000 PEOPLE IN DES MOINES AND ITS SUBURBS THE NATIONAL WEATHER SERVICE TERMED THE SITUATION IN THE IOWA CAPITAL EXTREMELY DANGEROUS SANDBAGGING OPERATIONS CONTINUED ALONG THE MISSISSIPPI AND TRIBUTARIES SUCH AS THE RACCOON RIVER THE DEFENSE DEPARTMENT HAS SENT MORE THAN NINE MILLION EMPTY BAGS TO THE REGION A UN SPECIAL ENVOY DECLARED THERE WOULD BE NO EASING OF A MILITARY CRACKDOWN AGAINST SOMALI CLAN LEADER AIDID DESPITE CRITICISM BY ITALY AS WELL AS RELIEF AGENCIES THERE IS A TIME WHEN YOU HAVE TO STAND UP AND USE FORCE RETIRED ADM JONATHAN HOWE SAID A DAY AFTER A UN ASSAULT RESULTED IN CIVILIAN DEATHS THE US DISPATCHED 12 GROUND ATTACK PLANES TO AN AIR BASE IN ITALY FOR POSSIBLE USE IN ENFORCING THE UN'S SAFEHAVEN POLICY FOR BOSNIA'S MUSLIM POPULATION MEANWHILE SIX MUSLIM NATIONS AND THE PALESTINE LIBERATION ORGANIZATION OFFERED TO SEND 18000 SOLDIERS TO PROTECT THE SAFE AREAS WHICH HAVE COME UNDER HEAVY ATTACK INTERIOR SECRETARY BABBITT ANNOUNCED THAT THE US GOVERNMENT AND THE STATE OF FLORIDA AGREED WITH SUGAR GROWERS ON THE FRAMEWORK FOR A 465 MILLION PLAN TO CLEAN UP POLLUTION IN THE EVERGLADES AND BEGIN RESTORING THE ECOSYSTEM ENVIRONMENTAL GROUPS DESCRIBED THE PLAN AS INADEQUATE IN ITS SCOPE ASPIN HAS RECOMMENDED ALLOWING HOMOSEXUALS IN THE MILITARY IF THEY MAKE NO PUBLIC OR PRIVATE DECLARATION OF THEIR SEXUAL ORIENTATION SOURCES IN THE GAY COMMUNITY SAID THEY WERE TOLD BY SENIOR DEFENSE DEPARTMENT OFFICIALS BUT THEY SAID THE POLICY ALLOWED A BIT OF LATITUDE FOR HOMOSEXUALS TO CONFIDE IN CLOSE FRIENDS US AUTHORITIES SAID THEY WOULD ISSUE NO FURTHER INFORMATION ABOUT THREE SHIPS DETAINED OFF MEXICO'S PACIFIC COAST WITH OVER 650 CHINESE IMMIGRANTS CITING SENSITIVE NEGOTIATIONS ON THEIR FATE THE NEWS BLACKOUT EFFECTIVE FOR AN INDEFINITE PERIOD CAME A DAY AFTER MEXICO REAFFIRMED ITS REJECTION OF A US REQUEST TO ACCEPT THE ALIENS THE FRENCH PARLIAMENT PASSED A TOUGH IMMIGRATION LAW THAT RESTRICTS FOREIGNERS' RIGHTS TO MARRY OR BRING THEIR FAMILIES TO FRANCE AND GIVES POLICE EXTRA POWER TO CARRY OUT EXPULSIONS THE LAW ATTACKED BY LIBERAL LAWYERS AND CIVIL RIGHTS GROUPS WAS PASSED BY A SHOW OF HANDS IN THE CONSERVATIVEDOMINATED NATIONAL ASSEMBLY SOUTH AFRICAN GUNMEN FIRED AT RANDOM FROM A MOVING CAR IN TWO BLACK TOWNSHIPS OUTSIDE JOHANNESBURG KILLING 14 PEDESTRIANS AND WOUNDING 11 OTHERS THE ATTACK CAME ON THE EVE OF RENEWED PEACE TALKS BETWEEN THE AFRICAN NATIONAL CONGRESS AND A RIVAL BLACK GROUP THE INKATHA FREEDOM PARTY NICARAGUA'S PRESIDENT HAS PROPOSED A PARTIAL AMNESTY TO COAX 1400 GUERRILLAS TO LAY DOWN THEIR ARMS CHAMORRO'S PLAN WHICH REQUIRES LEGISLATIVE APPROVAL WOULD GIVE THE REBELS UNTIL AUG 31 TO COMPLY SECRETARY OF STATE CHRISTOPHER WEIGHED A POSSIBLE RETURN TRIP TO THE MIDEAST NEXT WEEK IN HIS EFFORT TO RESCUE ARABISRAELI TALKS SEPARATELY ISRAELPLO DIPLOMATIC CONTACTS HAVE BECOME MORE FREQUENT THE KHMER ROUGE OFFERED TO END ITS LONGSTANDING GUERRILLA WAR IN CAMBODIA IN EXCHANGE FOR AN ADVISORY ROLE IN THE COUNTRY'S NEWLY ELECTED GOVERNMENT BUT PHNOM PENH OFFICIALS SAID THEY WOULDN'T CONSIDER THE REBEL PROPOSAL UNTIL THE KHMER ROUGE CEASES ITS ATTACKS ON GOVERNMENT FORCES HAITIAN POLITICIANS WILL RESUME NEGOTIATIONS TODAY AT THE UN ON A PEACE PLAN THAT WOULD RESTORE DEMOCRACY THERE IN PORTAUPRINCE MEANWHILE 13 POLITICIANS WHO HAVE BLOCKED THE PLAN SAID YESTERDAY THAT THEY WERE READY TO TEMPORARILY WITHDRAW FROM PARLIAMENT THEIR MOVE COULD SPEED EFFORTS TO GET A UN OIL EMBARGO LIFTED MORE UNMARRIED US WOMEN ARE BEARING CHILDREN THE CENSUS BUREAU SAID ALMOST ONE OUT OF FOUR WOMEN WHO HAD CHILDREN FROM JULY 1991 TO JUNE 1992 WERE UNMARRIED THE AGENCY REPORTED A KEY OPPOSITION POLITICIAN SAID JAPAN'S RULING LIBERAL DEMOCRATIC PARTY COULD BECOME A RULING MINORITY PARTY AFTER THIS SUNDAY'S ELECTIONS THE LDP APPEARED TO BE DOING BETTER THAN EXPECTED IN A NUMBER OF RACES 9307140117 930714 BUSH SUBPOENAED TO TESTIFY AT TRIAL OF BNL MANAGER WASHINGTON FORMER PRESIDENT GEORGE BUSH HAS BEEN SUBPOENAED TO TESTIFY AT THE TRIAL OF CHRISTOPHER DROGOUL THE FORMER MANAGER OF THE ATLANTA BRANCH OF BANCA NAZIONALE DEL LAVORO ROBERT SIMELS MR DROGOUL'S ATTORNEY SAID THE SUBPOENA ALSO ASKS MR BUSH TO PRODUCE A SERIES OF DOCUMENTS THAT MR SIMELS ASSERTS WILL SHOW A WHITE HOUSE CONNECTION TO EFFORTS TO ENCOURAGE TRADE AND FINANCING FOR IRAQ BEFORE THE GULF WAR THE SUBPOENA WAS ACCEPTED BY THE JUSTICE DEPARTMENT WHICH IS RESPONSIBLE FOR DEFENDING THE ACTS OF PAST PRESIDENTS WHILE THEY WERE IN OFFICE A DEPARTMENT SPOKESMAN SAID THERE HAS BEEN NO DECISION HOW TO HANDLE THE MATTER A SPOKESMAN FOR PRESIDENT BUSH'S OFFICE IN HOUSTON REFERRED A REPORTER TO THE JUSTICE DEPARTMENT LAST WEEK MR SIMELS FILED A SIMILAR SUBPOENA ON THE NEW YORK CONSULTING FIRM OF FORMER SECRETARY OF STATE HENRY KISSINGER LAWYERS FOR MR KISSINGER WHO HAS DENIED ANY INVOLVEMENT BY MEMBERS OF HIS FIRM IN THE BNL SCANDAL HAVE MOVED TO QUASH THE SUBPOENA A FEDERAL JUDGE IN ATLANTA HAS SET A SEPT 8 TRIAL DATE FOR THE CASE WHICH INVOLVES CHARGES THAT MR DROGOUL DEFRAUDED THE ITALIAN BANK OF 21 BILLION IN LOANS THAT WERE ALLEGEDLY NOT AUTHORIZED BY THE BANK'S HEADQUARTERS 9307140116 930714 RACIAL DIVIDE A SLICE OF LOUISIANA IS SITE OF NEXT BATTLE OVER MINORITY DISTRICTS BIZARRE SHAPE ASSURES BLACKS GET CONGRESSIONAL SEAT WILL IT HOLD UP IN COURT CLEO FIELDS MAKES CONVERTS BY DOROTHY J GAITER AND JAMES M PERRY STAFF REPORTERS OF THE WALL STREET JOURNAL MONROE LA I KNOW WE SUPPORTED CLEO FIELDS SAYS JOSLYN WRIGHT COOWNER OF THE FREE PRESS A BLACK WEEKLY HERE BUT I CAN'T SAY FOR SURE HE'S OUR CONGRESSMAN IT'S NO WONDER THE 30YEAROLD MR FIELDS LOUISIANA'S SECOND BLACK CONGRESSMAN SINCE RECONSTRUCTION REPRESENTS A DISTRICT THAT LOOKS AS IF IT WAS DESIGNED BY JOHNNY APPLESEED IT BEGINS LIFE NORTH OF SHREVEPORT ON THE ARKANSAS BORDER WANDERS EAST ALL THE WAY TO THE MISSISSIPPI RIVER AND THEN HEADS SOUTH HELTERSKELTER TOWARD THE GULF OF MEXICO AT SOME POINTS IT IS ONLY 80 FEET WIDE IT LOOKS BIZARRE IT IS BIZARRE BUT THERE IS A REASON FOR IT THIS IS ONE OF MORE THAN 50 CONGRESSIONAL DISTRICTS LAID OUT AFTER THE 1990 CENSUS IN ANSWER TO THE VOTING RIGHTS ACT OF 1965 AND ITS AMENDMENTS TO GIVE MINORITIES REPRESENTATION IN CONGRESS BUT NOW IN AN EXTRAORDINARY DECISION BY THE US SUPREME COURT THIS EFFORT TO CREATE SOCALLED AFFIRMATIVEACTION MINORITY DISTRICTS IS UNDER ATTACK THE HIGH COURT RULING JUNE 26 ON A CHALLENGE TO THE WAY THE NEW 12TH DISTRICT IN NORTH CAROLINA WAS CARVED OUT SUGGESTS THINGS MAY HAVE GONE TOO FAR IN THE COURT'S MAJORITY OPINION JUSTICE SANDRA DAY O'CONNOR SAID THE RESULT OF THE EFFORTS TO CREATE MINORITY DISTRICTS BEARS AN UNCOMFORTABLE RESEMBLANCE TO POLITICAL APARTHEID IF STRANGELY SHAPED DISTRICTS CANNOT BE UNDERSTOOD AS ANYTHING OTHER THAN AN EFFORT TO CLASSIFY AND SEPARATE VOTERS BY RACE SHE SAID THEY MIGHT BE UNCONSTITUTIONAL NATIONAL PARTY LEADERS DEMOCRATS AND REPUBLICANS ALIKE ARE FLUMMOXED WE THOUGHT THIS WAS ALL BEHIND US SAYS JEFFREY WICE THE DEMOCRATS' CHIEF REDISTRICTING COUNSEL NOW EVERYTHING FROM CONGRESSIONAL DISTRICTS TO MOSQUITO CONTROL DISTRICTS THAT REFLECTS CENSUS COUNTS IS UP IN THE AIR LOUISIANA'S FOURTH DISTRICT ISN'T THE STANDARD GERRYMANDER IN WHICH ONE PARTY CARVES OUT A DISTRICT TO GAIN ADVANTAGE OVER THE OTHER OVER THE YEARS THE SUPREME COURT SEEMING TO SENSE THAT POLITICIANS WILL BE POLITICIANS HAS LEFT MOST OF THOSE DESIGNS INTACT THIS FIGHT IS DIFFERENT THE LOUISIANA DISTRICT AND OTHERS LIKE IT ARE AT THE HEART OF A STRUGGLE TO SQUARE A FUNDAMENTAL PREMISE OF THIS NATION'S FOUNDING THAT AMERICA IS A NATION GOVERNED FOR THE PEOPLE AND BY THE PEOPLE WITH THE HARD REALITY THAT UNTIL THE DAWNING OF THE CIVILRIGHTS ERA PEOPLE MEANT ALMOST ALL OF THE TIME WHITE PEOPLE UNTIL THE NORTH CAROLINA CASE IT SEEMED THAT BOTH PARTIES WERE QUIETLY GOING ALONG WITH THE NOTION OF CREATING THESE NEW MINORITY DISTRICTS INDEED MANY OF THE BOUNDARY LINES RESULTED FROM TACTICAL ALLIANCES BETWEEN MINORITY GROUPS EAGER TO INCREASE THEIR REPRESENTATION AND LOCAL REPUBLICANS EQUALLY EAGER TO DRAIN USUALLY DEMOCRATICVOTING MINORITIES OUT OF THE SURROUNDING DISTRICTS MOREOVER IT WAS A REPUBLICAN JUSTICE DEPARTMENT THAT FORCED STATE LEGISLATORS TO COME UP WITH PLANS THAT PROVIDED FOR MINORITY REPRESENTATION IT IS ONLY NOW UNDER A NEW REPUBLICAN NATIONAL COMMITTEE CHIEF COUNSEL MICHAEL HESS THAT THE REPUBLICANS HAVE BEGUN TO CHANGE THEIR TUNE THE GOP JUSTICE DEPARTMENT SAYS MR HESS WAS OVERZEALOUS IN HER OPINION JUSTICE O'CONNOR GAVE NO GUIDELINES ON WHAT SHOULD BE DONE ABOUT THE DISTRICT THE NOTION IS THAT THE NORTH CAROLINA LEGISLATURE WILL BE REQUIRED TO REVISIT REAPPORTIONMENT AND COME UP WITH NEW DISTRICTS THAT ARE MORE COMPACT AND MORE CONTIGUOUS BUT THAT IS JUST THE START OF IT THE NEXT BATTLE IS ALREADY UNDER WAY RIGHT HERE IN LOUISIANA WHERE A SUIT SIMILAR TO THE ONE FILED IN NORTH CAROLINA CHALLENGES THE REDISTRICTING THAT SENT MR FIELDS TO WASHINGTON AS THE YOUNGEST MEMBER OF THE HOUSE OF REPRESENTATIVES THERE IS NO EVIDENCE THAT EITHER NATIONAL PARTY HAS PLAYED ANY ROLE IN FILING THE LOUISIANA SUIT NATIONAL DEMOCRATS DEFEND MINORITY DISTRICTS NATIONAL REPUBLICAN LEADERS AREN'T SURE THEY REALLY WANT TO REVISIT THE PAINFUL REDISTRICTING PROCESS IN A SIGNIFICANT WAY THIS IS A LOCAL OPERATION PERHAPS THE FIRST OF MANY TO FOLLOW THE PLAINTIFFS ARE RAY HAYS A WHITE MEMBER OF THE STATE'S DEMOCRATIC CENTRAL COMMITTEE EDWARD ADAMS A BLACK CITY COUNCILMAN IN GRAMBLING SUSAN SINGLETON AN ASIANAMERICAN WHO PROCESSES CLAIMS AT LINCOLN GENERAL HOSPITAL IN MONROE AND GARY STOKLEY A WHITE SOCIOLOGY PROFESSOR AT LOUISIANA TECH THEY ARE BACKED BY TWO LAWYERS PAUL HURD A WHITE REPUBLICAN AND DEMOCRATIC STATE REP JAY MCCALLUM OF FARMERVILLE WHO IS WHITE AND WHO VOTED AGAINST THE PLAN IN THE STATE LEGISLATURE MR HAYS ARGUES THAT THE REDISTRICTING PLAN WASN'T NECESSARY BECAUSE CROSSOVER VOTING BY WHITES FOR BLACK CANDIDATES WAS ALREADY OCCURRING LOUISIANA'S OTHER BLACK CONGRESSMAN WILLIAM JEFFERSON FROM NEW ORLEANS WAS ELECTED IN 1990 THE STATE'S OTHER FIVE MEMBERS OF CONGRESS ARE WHITE INDEED MR HAYS CONTENDS THAT THE CREATION OF A SUPERBLACK DISTRICT MIGHT ACTUALLY BE HARMFUL TO RACE RELATIONS IN THE LONG RUN MR HURD THE ATTORNEY POINTS TO WHAT HE SAYS IS A CRUCIAL DIFFERENCE BETWEEN HIS GROUP'S LAWSUIT AND THE ONE IN NORTH CAROLINA THE LOUISIANA PLAINTIFFS DON'T CLAIM THE NEW DISTRICT DISCRIMINATES AGAINST WHITE VOTERS INSTEAD THEY BELIEVE THAT WHILE BLACKS SHOULD HAVE THE OPPORTUNITY TO ELECT BLACK REPRESENTATIVES THE RESULTS SHOULDN'T BE GUARANTEED MR ADAMS ONE OF THE PLAINTIFFS SAYS HE WORRIES THAT BLACK CANDIDATES WILL BEGIN TO OUTBLACK EACH OTHER AND WHITE CANDIDATES WILL OUTWHITE EACH OTHER TO GET ELECTED ULTIMATELY HE FEARS WE COULD HAVE TWO FARRAKHANS AND FIVE DAVID DUKES AS MEMBERS OF CONGRESS LOUIS FARRAKHAN IS THE CONTROVERSIAL BLACK MUSLIM MINISTER AND MR DUKE IS A WHITE SUPREMACIST FROM LOUISIANA MR ADAMS SAYS HE AND SOME OTHER BLACK VOTERS OBJECT TO THE NEW DISTRICT BECAUSE IT EMPHASIZES SEPARATION RATHER THAN COOPERATION BETWEEN THE RACES I SEE US GOING BACK TO A SEGREGATED SOCIETY WHERE WE WOULD SEE EVERYTHING IN TERMS OF COLOR A RULING FROM A FEDERAL PANEL OF THREE JUDGES MAY COME AS EARLY AS THE FIRST WEEK IN AUGUST AN EVENTUAL COURT VICTORY BY THE PLAINTIFFS WOULD THROW THE MATTER BACK INTO THE LOUISIANA LEGISLATURE WHICH WOULD HAVE TO DEVISE A NEW REDISTRICTING PLAN FOR THE STATE MR FIELDS WOULDN'T BE TOSSED FROM OFFICE BUT WOULD LIKELY FACE THE PROSPECT OF RUNNING IN A REDRAWN DISTRICT WITH FEWER BLACK CONSTITUENTS ON THE OTHER HAND HE WOULD STILL BENEFIT FROM THE MANY PERQUISITES OF OFFICE NAME RECOGNITION ACCESS TO CAMPAIGN MONEY AND THE LIKE THAT MAKE ANY INCUMBENT HARD TO BEAT MEANWHILE ANYONE EVEN VAGUELY AWARE OF WHAT IS HAPPENING HERE UNDERSTANDS THAT THE NEW DISTRICT IS ODD IN RUSTON A SMALL TOWN IN THE BIBLE BELT IN THE NORTHERN PART OF THE DISTRICT A DOZEN REGULARS ALL OF THEM WHITE AND MOST OF THEM WHITEHAIRED GATHER EVERY DAY FOR COFFEE IN A BACK ROOM AT THE POT LUCK ANTIQUES STORE THEY WORRY FIRST OF ALL IF ANYONE GIVEN THE DISTRICT'S BIZARRE SHAPE CAN PROPERLY REPRESENT THE VOTERS THE DISTRICT CUTS THROUGH 28 OF THE STATE'S 64 PARISHES OR COUNTIES AND IF YOU DROVE DOWN THE MIDDLE OF IT WEST TO EAST AND THEN NORTH TO SOUTH YOU WOULD TRAVEL 600 MILES I DON'T CARE WHO IT WOULD BE SAYS WILLIAM SHANDS CARTER 68 A COFFEE CLUB MEMBER AND A RETIRED PROFESSOR OF COMMUNICATIONS AT LOUISIANA TECH THEY COULD NOT GET INTO THIS AREA WITH ANY DEGREE OF FREQUENCY TO SPEAK TO PEOPLE WILEY HILBURN SR 80 A RETIRED OWNER OF A DRYCLEANING BUSINESS COMES CLOSER TO THE HEART OF THE PROBLEM THOUGH HE LATER REGRETS HAVING AIRED HIS OPINION THE NEW DISTRICT HE SAYS IS VERY UNFAIR IT DISCRIMINATES AGAINST WHITE PEOPLE THEY DREW IT IN ORDER FOR MR FIELDS TO BE ELECTED THE NEW DISTRICT IS IN FACT 664 BLACK IN A STATE WHERE 30 OF THE STATE'S POPULATION OF 4 MILLION IS BLACK AND AS A MEMBER OF THE LOUISIANA SENATE AND CHAIRMAN OF ITS REAPPORTIONMENT COMMITTEE MR FIELDS WATCHED WITH INTEREST AS IT WAS CARVED UP IT IS PERHAPS NO COINCIDENCE THAT IT INCLUDES HIS BASE IN BATON ROUGE AND THE STUDENTS AT SOUTHERN UNIVERSITY WHO FORMED THE CORE OF HIS VOLUNTEER CAMPAIGN ARMY MR FIELDS DENIES HE DREW UP THE NEW DISTRICT AND HE SAYS HE REFRAINED FROM VOTING ON THE PLAN WHEN IT REACHED THE FLOOR BUT HE DEFENDS IT IT WAS THE RIGHT THING TO DO HE SAYS THERE WAS NO DISCRIMINATORY INTENT GUS WEILL A LOUISIANA VETERAN POLITICAL CONSULTANT WHO HAS WORKED FOR CANDIDATES FROM BOTH PARTIES CONCEDES THE NEW DISTRICT IS A GEOGRAPHIC ABOMINATION BUT WEILL WHO IS WHITE ARGUES THAT THE GREAT CHANGES THAT HAVE TAKEN PLACE IN THE SOUTH AND IN THIS COUNTRY MOST OF THEM HAVE NOT TRANSPIRED BY ATTRITION OR EVEN THE PASSAGE OF TIME THEY HAVE HAD TO BE NUDGED ALONG BY COURT DICTUM IF THESE DISTRICTS DID NOT EXIST I DON'T KNOW HOW MANY GENERATIONS WOULD HAVE TO EXIST BEFORE WE WOULD HAVE BLACK CONGRESSMEN GIVEN THE NUMBER OF BLACKS IN LOUISIANA HE SAYS IT'S NOT ASKING AN INORDINATE THING OF THE CITIZENRY OTIS CHISLEY THE 39YEAROLD DIRECTOR OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE IN MONROE CRITICIZES THE WHITE PEOPLE WHO HAVE FILED SUIT OVER THE WAY THE STATE HAS BEEN REDISTRICTED IF THE SHOE WAS ON THE OTHER FOOT HE SAYS THEY WOULDN'T LOOK AT IT THAT WAY WE BLACKS HAVE ACHIEVED SOMETHING AND NOW THEY WANT TO TAKE IT AWAY CLEO HAS A LOT OF WHITE CONSTITUENTS TOO HE'S DOING A TREMENDOUS JOB MR FIELDS TAKES HIS LEAD FROM ALL THE OTHER MEMBERS OF CONGRESS WHO HAVE LEARNED HOW TO GET REELECTED AGAIN AND AGAIN HE COMES HOME TO THE DISTRICT EVERY WEEKEND HE HAS ALREADY ESTABLISHED FULLTIME OFFICES IN THE DISTRICT'S FOUR LARGEST CITIES A STAFF MEMBER MAKES THE ROUNDS OF THE OTHER PARISHES THAT DON'T HAVE FULLTIME OFFICES IN FACT MR FIELDS IS IN LOUISIANA THE SAME DAY THE FOLKS ARE MEETING AT THE COFFEE CLUB IN RUSTON AND MR CHISLEY IS EXPRESSING HIS SENTIMENTS HERE IN MONROE HE HAS SCHEDULED THREE TOWNHALL MEETINGS TO MEET THE VOTERS BLACK AND WHITE ONE OF THEM IS IN THE TOWN HALL AT JACKSON ABOUT 30 MILES NORTH OF BATON ROUGE IT IS THE KIND OF TOWNHALL MEETING THAT COULD OCCUR ANYWHERE IN THE COUNTRY MR FIELDS IS A SHORT ENERGETIC MAN AND HE HAS ALREADY BUILT AN EXTRAORDINARY CIRCLE OF ACQUAINTANCES IN JACKSON HE SINGLES MANY OF THEM OUT BY NAME HE ANSWERS QUESTIONS ABOUT PRESIDENT CLINTON'S TAX PLAN AND HOW IT SEEKS TO GRAPPLE WITH THE DEFICIT HE TALKS ABOUT FAMILY LEAVE AND FEDERAL HELP FOR STRUGGLING CITIES WHEN IT IS OVER HIS CONSTITUENTS STOP BY TO SHAKE HIS HAND ONE OF THEM HENRIETTA GOUDREAUX THE BLACK OWNER OF A BARBECUE RESTAURANT IN NEARBY CLINTON GRASPS HIS HANDS IN HERS AND SAYS MR FIELDS WE PRAY FOR YOU EVERY DAY MR FIELDS NOTES THAT NO ONE ATTENDING THE MEETING RAISED A RACIAL ISSUE NO ONE ASKED HIM ABOUT THE SHAPE OF THE NEW DISTRICT WHAT MOST OF HIS CONSTITUENTS HAVE IN COMMON HE SAYS IS POVERTY THEY NEED HOPE THAT'S WHY I DON'T STAY IN WASHINGTON THAT'S WHY I'M OUT HERE MAYBE IT'S WORKING DAVID L BROCK 62 A WHITE RETIRED POSTAL WORKER TAKES HIS POLITICS SERIOUSLY HE IS ATTENDING HIS SECOND TOWNHALL MEETING OF THE DAY HOSTED BY MR FIELDS I DIDN'T VOTE FOR HIM HE SAYS BUT I'M REALLY IMPRESSED AND MY OPINION OF HIM HAS CHANGED HE ANSWERS QUESTIONS THE BEST HE CAN AND HE'S ACCESSIBLE WILLIAM THOMAS THE CHIEF OF POLICE IN JACKSON WHO IS WHITE SAYS HE VOTED FOR MR FIELDS I DON'T FEEL LIKE HE'S REPRESENTING A MINORITY GROUP HE'S REPRESENTING HIS CONSTITUENTS HE SAYS IT DOESN'T MAKE ANY DIFFERENCE WHO HE IS AS LONG AS HE REPRESENTS ALL OF US AND PATRICK CARDWELL A WHITE RUSTON COUNCILMAN AND A MEMBER IN GOOD STANDING OF THE COFFEE CLUB THERE SAYS HE HAS SEEN ONE GOOD SIGN ALREADY I PROBABLY HAVE GOTTEN MORE CORRESPONDENCE FROM THIS NEW GUY THAN ANYONE BEFORE 9307140115 930714 TECHNOLOGY & HEALTH APPLE MAY SELL NOTEBOOK COMPUTERS WITH SOFTWARE THROUGH RETAIL OUTLETS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC IMPAIRED BY RECENT COSTCUTTING AND LAYOFFS IS LOOKING TO SQUEEZE MORE PROFIT OUT OF ONE OF ITS BESTSELLERS ITS NOTEBOOK COMPUTERS TO BOOST REVENUE THE CUPERTINO CALIF COMPUTER MAKER SAID IT'S CONSIDERING SELLING FOR THE FIRST TIME A VERSION OF ITS MACINTOSH POWERBOOK COMPUTERS THROUGH RETAIL OUTLETS AND OFFERING WITH IT AS A STANDARD FEATURE COMMUNICATIONS SOFTWARE WHICH IT HOPES WILL LURE CUSTOMERS TO ITS ONLINE DATA SERVICES THE PRESSURE TO PARE COSTS COULD DOOM A NEW POWERBOOK IN THE WORKS ONE THAT USES AN ELECTRONIC PEN TO INPUT DATA ACCORDING TO RANDY BATTAT VICE PRESIDENT OF APPLE'S PORTABLE COMPUTERS GROUP WE ARE HAVING TO TAKE A HARD LOOK AT ALL OF OUR INVESTMENTS HE SAID APPLE'S BELTTIGHTENING HAS FORCED IT TO SEEK QUICK WAYS TO INCREASE REVENUE WHILE ENDANGERING THE FATES OF PROJECTS THAT DEPEND ON LONGTERM PAYOFFS EARLIER THIS YEAR APPLE ANNOUNCED ITS PLANS FOR A PENBASED PROJECT JUMPING ON THE BANDWAGON OF COMPANIES LOOKING TO MAKE COMPUTERS EASIER TO USE THUS BROADENING THE MARKET BUT SALES OF PENBASED COMPUTERS HAVE BEEN LACKLUSTER TOTAL 1992 SALES IN THE US REACHED 318000 UNITS AND US SALES FOR THE NEXT SEVERAL YEARS ARE EXPECTED TO BE WELL UNDER ONE MILLION UNITS A YEAR ACCORDING TO DATAQUEST INC A MARKET RESEARCH FIRM IF APPLE SHELVES ITS PENBASED PROJECT IT STILL WILL HAVE IN ITS PRODUCT LINE THE MUCHANTICIPATED NEWTON HANDHELD COMPUTER WHICH IS BASED ON PEN TECHNOLOGY NEWTON IS EXPECTED TO BEGIN SELLING THIS SUMMER SALES OF APPLE'S MAINSTAY ITS MACINTOSH DESKTOP COMPUTERS INCREASINGLY HAVE BEEN ASSAULTED BY SALES OF MACHINES MADE WITH INTEL CORP COMPUTER CHIPS AND MICROSOFT SOFTWARE THE PRICES OF THOSE SOCALLED IBMCOMPATIBLE COMPUTERS HAVE PLUMMETED SPURRING APPLE TO RESPOND BY LOWERING PRICES WHICH HURT PROFIT MARGINS LAST WEEK APPLE ANNOUNCED PLANS TO SLICE EXPENSES AND LAY OFF 2500 EMPLOYEES WHEN APPLE BEGAN SELLING ITS POWERBOOKS IN 1991 IT HIT A GOLD MINE A YEAR LATER SALES OF APPLE'S NOTEBOOKS ROCKETED TO 13 BILLION ACCORDING TO DATAQUEST ESTIMATES BUT THE PORTABLE DEVICES HAVE BEGUN MEETING STIFF COMPETITION FROM COMPANIES SUCH AS HEWLETTPACKARD CO AND INTERNATIONAL BUSINESS MACHINES CORP ONE WAY APPLE IS TRYING TO CREATIVELY SQUEEZE MORE REVENUE FROM ITS PRODUCTS IS BY INCLUDING FOR FREE A COMMUNICATIONS SOFTWARE APPLELINK WITH EVERY POWERBOOK IT SELLS THE SOFTWARE ALLOWS USERS TO TAP INTO AN ELECTRONIC NETWORK OF SERVICES AND INFORMATION USERS MUST PAY APPLE 12 TO 37 AN HOUR FOR THE SERVICE APPLE ALSO IS CONSIDERING SELLING A VERSION OF ITS POWERBOOK COMPUTERS AT RETAIL OUTLETS SUCH AS OFFICE DEPOT INC SEARS ROEBUCK & CO AND GOOD GUYS INC WHERE IT SELLS ITS CONSUMERORIENTED MACINTOSH PERFORMA MODELS SAID KEITH FOX AN APPLE VICE PRESIDENT AND GENERAL MANAGER THE NEW MODEL LIKELY WILL HAVE THE KIND OF GENERAL ALLPURPOSE SOFTWARE AND HARDWARE THAT WOULD MAKE IT MOST APPEALING TO CONSUMERS HE SAID MR FOX DECLINED TO DISCUSS FEATURES OF THE NEW MODEL OR IDENTIFY A DATE WHEN APPLE PLANS TO BEGIN SELLING IT OTHER THAN TO SAY WITHIN THE NEXT YEAR 9307140114 930714 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LE SS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9307140113 930714 A WORKABLE ALTERNATIVE BY MARTIN FELDSTEIN THERE IS A GROWING POLITICAL CONSENSUS THAT SOMETHING SHOULD BE DONE TO EXTEND COVERAGE TO THE UNINSURED TO PROTECT THOSE WHO FEAR A LOSS OF INSURANCE AND TO CONTROL THE RAPID RISE IN HEALTH CARE COSTS DOING SO DOES NOT REQUIRE A RADICAL CHANGE IN OUR HEALTH CARE SYSTEM THE BROAD GOALS OF INCREASING PROTECTION AND LIMITING HEALTH COSTS COULD BE ACHIEVED BY THREE CHANGES TO OUR CURRENT SYSTEM FIRST REQUIRE EMPLOYERPROVIDED HEALTH INSURANCE PLANS TO ALLOW EMPLOYEES TO CONTINUE COVERAGE AT THEIR OWN EXPENSE WHEN THEY CHANGE JOBS PORTABILITY AND ELIMINATE EXCLUSIONS AND WAITING PERIODS FOR PREEXISTING CONDITIONS EXTEND THE SAME BENEFITS TO DEPENDENTS SURVIVING SPOUSES AND DIVORCED SPOUSES ANY POLICY THAT DID NOT HAVE THESE FEATURES WOULD LOSE THE CURRENT FAVORABLE TAX TREATMENT OF BEING REGARDED AS AN EMPLOYER COST BUT NOT INCLUDED IN EMPLOYEE INCOME THESE CHANGES WOULD ELIMINATE THE PRINCIPLE CONCERN OF THE 85 OF THE POPULATION WHO NOW HAVE HEALTH INSURANCE SECOND USE TARGETED PROGRAMS TO EXTEND COVERAGE TO THE 15 WHO ARE NOW UNINSURED FOR EXAMPLE THE UNEMPLOYED COULD BE COVERED BY USING A FRACTION OF UNEMPLOYMENT BENEFITS TO PAY FOR COVERAGE COLLEGES AND UNIVERSITIES THAT RECEIVE FEDERAL FUNDS COULD BE REQUIRED TO PROVIDE INSURANCE OR HEALTH SERVICES TO STUDENTS TARGETED PROGRAMS COULD ALSO DEAL WITH MOST OTHERS WHO ARE CURRENTLY UNINSURED THESE PROGRAMS INVOLVE COSTS AND TAXLIKE DISTORTIONS BUT SINCE THEY DEAL WITH ONLY 15 OF THE POPULATION THEY INVOLVE MUCH LESS INTERFERENCE THAN PROGRAMS LIKE THE WHITE HOUSE PLAN WHICH WOULD CHANGE THE INSURANCE OF EVERY AMERICAN AND RAISE MARGINAL TAX RATES SHARPLY THIRD TO HELP CONTAIN COSTS AND MAKE HEALTH CARE RESPONSIVE TO PATIENTS' PREFERENCES CHANGE THE TAX RULES THAT CURRENTLY WEAKEN COST SENSITIVITY ALTHOUGH MANY EMPLOYERS NOW USE MANAGED CARE TO IMPROVE THE COSTEFFECTIVENESS OF THEIR HEALTH BENEFIT SPENDING THEIR NET SAVINGS TO SHAREHOLDERS AND EMPLOYEES ARE REDUCED BY THE TAX RULE THAT HEALTH INSURANCE OUTLAYS ARE DEDUCTIBLE AS A BUSINESS EXPENSE WITHOUT ANY LIMIT AND ARE NOT INCLUDED IN EMPLOYEES' TAXABLE INCOMES THIS SPECIAL TAX TREATMENT ALSO MAKES EMPLOYEES PREFER VERY COMPREHENSIVE HEALTH INSURANCE WITH SMALL DEDUCTIBLES AND COINSURANCE ANY ARRANGEMENT THAT LIMITS THE VALUE OF THE TAXFREE HEALTH INSURANCE BENEFITS THAT EMPLOYERS CAN PROVIDE WOULD ENCOURAGE CORPORATE SHOPPING FOR BETTER MANAGED CARE PLANS AND WOULD ENCOURAGE INDIVIDUALS TO SELECT HEALTH INSURANCE WITH GREATER DEDUCTIBLES AND COINSURANCE AND THEREFORE TO BE MORE COST SENSITIVE WHEN THEY AND THEIR DOCTORS CHOOSE AMONG TREATMENT OPTIONS SEE RELATED ARTICLE BOARD OF CONTRIBUTORS WHAT'S WRONG WITH THE CLINTON HEALTH PLAN WSJ JULY 14 1993 9307140112 930714 TREASURY SETS OFFERING OF SHORTTERM BILLS TO RAISE 205 BILLION WASHINGTON THE TREASURY PLANS TO RAISE 205 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 2235 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS MATURING OCT 21 1993 AND 26WEEK BILLS MATURING JAN 20 1994 THE CUSIP NUMBER FOR THE THREEMONTH TREASURYS IS 912794E42 FOR THE SIXMONTH IT IS 912794H56 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM 9307140111 930714 TECHNOLOGY & HEALTH IN THE LAB BATTERY ENGINEERS TRY TO JUMP START GM'S ELECTRIC CAR BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL INDIANAPOLIS RESEARCHERS AT GM'S DELCO REMY UNIT ARE IN A SLOW CAR RACE REGULATORS HAVE SAID ELECTRIC CARS MUST BE ON CALIFORNIA ROADS IN FIVE YEARS AND YET GENERAL MOTORS CORP WHICH HAS HAD AN ACTIVE ELECTRIC CAR PROGRAM IN EACH DECADE OF THIS CENTURY HAS ONLY MODESTLY IMPROVED ITS TECHNOLOGY FROM A CAR IT PRODUCED IN 1916 SO INSIDE HIS DUSTY 20FOOTBY30FOOT WORK SPACE BOUNDED BY BLUE DRAPES ENGINEER DELL CROUCH JR HAS THIS RACE IN MIND AS HE SITS ON A HARD STOOL AND CHECKS SEVEN 12VOLT CAR BATTERIES SOAKING IN WATER DREARY AS THIS TASK MAY SEEM THE BESPECTACLED MR CROUCH IS AS ALERT AS A JACK RABBIT FOR HE KNOWS THE ELECTRICAL PULSES TRICKLING FORTH FROM HIS CABLEHARNESSED GUINEA PIGS WILL PROVE CRUCIAL TO HIS MISSION TO FIGURE OUT IF THESE BATTERIES WILL DO MORE THAN JUST START A CAR AFTER EXPERIMENTING WITH NICKEL HYDRIDE SODIUM SULFUR NICKEL ZINC ZINC BROMIUM AND DOZENS OF OTHER ELEMENTS EXOTIC AND PROSAIC GM IS PINNING ITS BRIGHTEST HOPES FOR MAKING AN AFFORDABLE ELECTRIC VEHICLE ON THESE 39POUND PLASTIC BOXES FILLED WITH LEAD AND ACID WE HAVE WORKED ON ALL OF THEM SAYS BILL WYLAM CHIEF ENGINEER OF TECHNOLOGY DEVELOPMENT AT THE DELCO REMY UNIT HERE OF THE VARIED ELEMENTS ALL OF WHICH WE HAVE THROWN OVERBOARD AND THAT UNDERSCORES HOW THE FUTURE OF ELECTRIC CARS CONTINUES TO BE HELD HOSTAGE TO THE MADDENINGLY SLOW PACE OF BATTERY RESEARCH DESPITE FREQUENT BREATHLESS REPORTS OF BREAKTHROUGHS AND DESPITE CALIFORNIA'S ATTEMPT TO PUSH THE TECHNOLOGY NO ONE KNOWS THIS BETTER THAN GM UNTIL DECEMBER THE AUTO MAKER WAS PROMISING TO BE THE WORLD'S ELECTRIC CAR LEADER IN THE 1995 MODEL YEAR GM WAS GOING TO GO INTO PRODUCTION WITH AN ELECTRICPOWERED SPORTS COUPE THE IMPACT WHICH IT UNVEILED AT AUTO SHOWS THREE YEARS AGO BUT GM'S FINANCIAL WOES PUT THAT COSTLY PLAN ON HOLD STILL DELCO REMY ENGINEERS SUCH AS MR CROUCH CONTINUE TO MONITOR THE PULSE OF GM'S IMPACT PROGRAM MOSTLY BY MAKING REFINEMENTS ON THE CAR'S ORIGINAL LEADACID DESIGNS AND BY TESTING ANY OTHER BATTERY DESIGN THEY CAN GET THEIR HANDS ON WHILE SODIUM SULFUR NICKEL HYDRIDE AND THEIR COMPETING BRETHREN HAVE SHOWN PROMISE FOR GREATER RANGE AND GREATER POWER DENSITY THAN THE GOOD OLD LEADACID TECHNOLOGY THEY REMAIN FIVE TO 15 YEARS BEHIND GM'S CURRENT ALTERNATIVE NO COMPANY HAS FIGURED OUT A WAY TO MASS PRODUCE A FEASIBLE SUBSTITUTE THAT IS WHY NEXT DOOR TO MR CROUCH'S BATTERY STATION DELCO REMY IS MARRYING LAB KNOWLEDGE WITH MASSPRODUCTION KNOWHOW TO GET EXTRA MILEAGE OUT OF THE BASIC LEADACID BATTERY THE IMPROVEMENTS HAVE BEEN SUBTLE FOR EXAMPLE A MACHINE TAKES STRIPS OF LEAD AND STRETCHES THEM INTO GRIDS THAT ARE MORE RESILIENT THAN LEAD GRIDS MADE THROUGH A SLOWER CASTING PROCESS THIS GIVES THE GRIDS ADDED DURABILITY DURING RECHARGING A SEPARATE MACHINE SMEARS THE GRIDS WITH A DENSE LEADBASED PASTE A SECRET RECIPE CONCOCTED BY DELCO REMY DESIGNED TO PROLONG BATTERY LIFE LIKEWISE ANOTHER MACHINE WRAPS A GLASSBASED SPONGY MATERIAL AROUND THE LEAD GRIDS SO THE ACID CAN BE ABSORBED AND STORED IN THE MATERIAL RATHER THAN FILLING THE BATTERY AS A LIQUID THIS HELPS TO TRIM THE BATTERY'S WEIGHT AND MAKES THEM SPILLPROOF ALL OF THIS THE COMPANY SAYS CAN BE CARRIED OUT AT RAPID RATES USING PROTOTYPE MACHINES AND IN MANY RESPECTS THAT CLAIM IS ABOUT AS CUTTINGEDGE AS IT GETS WITH A BATTERY TECHNOLOGY THAT DATES BACK TO THE HORSE AND BUGGY FOR ALL ITS EFFORTS GM'S ADVANCED LEADACID BATTERY CAN PROVIDE A RANGE OF ONLY 80 MILES BETWEEN CHARGES THAT IS BARELY THE ENERGY EQUIVALENT OF THREE GALLONS OF GASOLINE AND IT COMES FROM A 26BATTERY ENERGY PACK THAT WEIGHS MORE THAN 1000 POUNDS HAS A LIFE OF 20000 TO 50000 MILES AND WOULD COST CONSUMERS ABOUT 1500 TO REPLACE AND THIS REPRESENTS ONLY A MODEST IMPROVEMENT FROM GM'S NICKELZINC POWERED ELECTROVETTE A CHEVROLET CHEVETTE THAT THE AUTO MAKER CONVERTED IN 1979 IN RESPONSE TO OILCRISIS HYSTERIA IT HAD A RANGE OF 35 MILES BETWEEN CHARGESNO BETTER THAN THE ELECTRICPOWERED CAR THE AUTO MAKER PRODUCED IN 1916 IDEALLY AUTO MAKERS WANT A BATTERY CAPABLE OF RUNNING A CAR 200 MILES OR MORE BETWEEN CHARGES GM AND DELCO REMY ARE HOPING FOR AS MUCH FROM ITS 20 MILLION INVESTMENT IN THE LONGTERM VIABILITY OF LITHIUMPOLYMER BATTERIES A VARIATION OF THE ENERGY CELLS USED TO POWER MANY CAMERAS AND WATCHES UNLIKE THE LEADACID BATTERY LITHIUM POLYMER BATTERIES USE CELLS MADE OUT OF MICRONTHIN SHEETS OF LITHIUM AND PLASTIC POLYMERS NO HEAVY METAL GRIDS NO DANGEROUS ACID A LITHIUM POLYMER EQUIVALENT TO DELCO REMY'S CURRENT LEADACID BATTERY PACK WOULD WEIGH ONLY ABOUT 500 POUNDS BUT THE TRANSITION FROM CAMERAS TO CARS INVOLVES MAKING THE SHEETS WITH INCREDIBLE PRECISION ANY VARIATION IN THICKNESS MORE THAN THAT OF A HUMAN HAIR CAN AFFECT BATTERY PERFORMANCE AND LITHIUM WHILE COMPARABLE IN COST WITH LEAD IS A HIGHLY REACTIVE MATERIAL THAT CAN ONLY BE HANDLED IN A DRY ATMOSPHERE CREATING PRODUCTION PROBLEMS AKIN TO THE MANUFACTURE OF COMPUTER CHIPS OTHERS LOOK TO GM'S APPROACH AND SAY THE AUTO MAKER IS ONLY BEING REALISTIC ABOUT THE SHORTTERM VIABILITY OF MASS PRODUCING ELECTRIC VEHICLES MANY AUTO MAKERS AND BATTERY DEVELOPERS TALK ABOUT THE DIFFERENT LITHIUMBASED BATTERIES BUT NO ONE HAS PUT A WHOLE BUNCH OF CELLS AND CYCLED THEM 3000 TIMES IN REAL DRIVING CONDITIONS SAYS DEREK CHEN TECHNICAL DIRECTOR FOR THE NONPROFIT ELECTRIC VEHICLE ASSOCIATION OF AMERICA IN CUPERTINO CALIF LEAD ACID ARE THE ONLY BATTERIES YOU ARE GOING TO SEE IN 1998 BUT NO ONE IS GOING TO SAY THAT TO BE SURE GM'S AND DELCO REMY'S RIVALS ARE QUICK TO POINT OUT LEAD ACID'S FAULTS AS THEY TOUT THE STRENGTHS OF THEIR OWN BATTERY TECHNOLOGIES BUT EVEN FORD MOTOR CO WHICH CONTINUES TO BACK THE SODIUMSULFUR BATTERY IT INVENTED IN THE 1960S CONCEDES THERE IS A BUMPY ROAD AHEAD FOR ITS TECHNOLOGY THERE ARE ONLY TWO PROTOTYPE FACILITIES IN THE WORLD THAT WE KNOW OF FOR THESE BATTERIES AND THERE ARE NO HIGH VOLUME FACILITIES ANYWHERE SAID DENNIS WILKIE DIRECTOR OF FORD'S ELECTRIC VEHICLE PROGRAMS AND THEREIN LIES THE PROBLEM OF ELECTRIC VEHICLES 9307140110 930714 ECONOMY PRODUCER PRICES DECLINED 03 DURING JUNE REPORT IS FURTHER EVIDENCE THAT SPURT IN INFLATION EARLIER WAS TEMPORARY NAME BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODUCER PRICES FELL 03 IN JUNE THE GOVERNMENT SAID THE SECOND CONSECUTIVE MONTH OF ENCOURAGING INFLATION DATA AND FURTHER EVIDENCE THAT THE SPURT IN PRICE GROWTH EARLIER THIS YEAR WAS ONLY TEMPORARY THE REPORT CONFIRMS THAT INFLATION IS CLEARLY NOT THE PROBLEM IT SEEMED AT THE BEGINNING OF THE YEAR SAID MARILYN SCHAJA OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE PRODUCER PRICE INDEX DURING THE FIRST SIX MONTHS OF THE YEAR HAS ONLY INCREASED AT A 24 ANNUAL RATE EVEN INCLUDING THE ACCELERATION IN PRICES DURING THE FIRST FOUR MONTHS SHE SAID THE INDEX WAS UNCHANGED IN MAY AFTER SHOOTING UP 06 IN APRIL EXCLUDING FOOD AND ENERGY PRICES WHICH ARE OFTEN VOLATILE PRODUCER PRICES FELL 01 LAST MONTH AFTER RISING 02 IN MAY ACCORDING TO THE LABOR DEPARTMENT REPORT MANY ECONOMISTS TRACK THIS MEASURE AS AN INDICATION OF THE CORE OR UNDERLYING INFLATION RATE FINANCIAL MARKETS SHRUGGED OFF THE GOOD NEWS WALL STREET ANALYSTS HAD ANTICIPATED A FAVORABLE REPORT AND SOME ANALYSTS HAD BEEN EVEN MORE OPTIMISTIC IF TODAY'S REPORT ON CONSUMER PRICES IS SIMILARLY PROMISING THE INFLATION SCARE WILL BE OVER AT LEAST FOR NOW FEDERAL RESERVE OFFICIALS SHAKEN BY THE UNANTICIPATED INCREASE IN INFLATION EARLIER REMAIN WARY THE DECLINE IN PRODUCER PRICES THE FIRST SINCE NOVEMBER REFLECTED FALLING PRICES IN FOOD AND ENERGY AS WELL AS OTHER GOODS TOBACCO PRICES WHICH ROSE SHARPLY IN MAY FELL 59 IN JUNE BUT THERE WERE SOME EXCEPTIONS NEW CAR PRICES ROSE 06 REVERSING A DECLINE OF THE SAME SIZE IN MAY AND PRESCRIPTION DRUG PRICES WERE UP 11 AND OVERTHECOUNTER DRUGS WERE UP A SHARP 26 FOOD PRICES FELL 09 IN JUNE AFTER DROPPING 01 IN MAY AND CLIMBING 14 IN APRIL ONE IMPORTANT FACTOR IN THE COMING MONTHS IS THE EFFECT OF THE FLOODS IN THE MIDWEST ON FOOD PRICES THE FLOODS ALREADY HAVE PUSHED UP CORN AND SOYBEAN PRICES BUT THE US STILL APPEARS TO BE HEADED FOR A BUMPER WHEAT CROP ENERGY PRICES FELL 05 AFTER DROPPING 06 THE MONTH BEFORE THE LABOR DEPARTMENT'S MEASURE OF THE PRICES OF INTERMEDIATE OR PARTLY PROCESSED GOODS ROSE A MODEST 02 IN JUNE IT FELL BY THE SAME AMOUNT IN MAY PRICES OF CRUDE GOODS OR RAW MATERIALS DROPPED 11 AFTER RISING 20 THE MONTH BEFORE INDUSTRIAL COMMODITY PRICES REMAIN WEAK MERRILL LYNCH & CO ECONOMISTS NOTED IN A REPORT THE JOURNAL OF COMMERCE'S INDUSTRIALPRICE INDEX IS AT AN 18MONTH LOW LIKE MANY OTHER ECONOMISTS THOSE AT MERRILL LYNCH ARE NEWLY CONFIDENT OF THEIR FORECAST THAT INFLATION WILL REMAIN SUBDUED THROUGH NEXT YEAR BUT FEW NOW EXPECT THIS YEAR'S INFLATION RATE TO BE LOWER THAN LAST YEAR'S THE FED IN PARTICULAR HAD HOPED IT WOULD BE LOWER ON AVERAGE THE 36 FORECASTERS SURVEYED RECENTLY BY THE FEDERAL RESERVE BANK OF PHILADELPHIA EXPECT THE CONSUMER PRICE INDEX A BROADER MEASURE THAN THE PRODUCERPRICE INDEX TO CLIMB 34 THIS YEAR COMPARED WITH 30 IN 1992 THE LATEST MONTHLY SURVEY OF ECONOMISTS BY BLUE CHIP ECONOMIC INDICATORS SHOWS THE AVERAGE FORECAST FOR THE INCREASE IN CONSUMER PRICES THIS YEAR TO BE 32 AND FOR NEXT YEAR 33 ABOUT ONE IN EVERY FIVE OF THE BLUE CHIP FORECASTERS HAS MARKED DOWN HIS INFLATION ESTIMATE IN THE PAST MONTH ALL THE FIGURES ARE ADJUSTED TO REMOVE THE USUAL SEASONAL FLUCTUATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR JUNE BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM JUNE 1992 9307140109 930714 PEPPERAND SALT WILL RELAX WITH A DRINK THEY ARE BUSY PREPARING DINNER THAT SUPERMARKETS SELL 9307140108 930714 WHO'S NEWS SAAB AUTOMOBILE AB SAAB AUTOMOBILE AB TROLLHATTAN SWEDEN JOHN C KRAMER 45 YEARS OLD FORMER DIRECTOR OF MARKETING OF MAZDA MOTOR CORP'S NOW DEFUNCT AMATI LUXURY CAR DIVISION WAS NAMED VICE PRESIDENT OF SALES AND MARKETING OF THIS SWEDISH AUTO MAKER'S US OPERATIONS HE SUCCEEDS JAN JONSSON 41 WHO WAS NAMED LAUNCH MANAGER AT SAAB'S HEADQUARTERS IN SWEDEN SAAB IS JOINTLY OWNED BY SWEDEN'S SAABSCANIA AB AND GENERAL MOTORS CORP 9307140107 930714 POLITICS & POLICY FLORIDA DEVELOPER TATE NAMED HEAD OF RTC BY CLINTON BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NAMED STANLEY TATE A FLORIDA REALESTATE DEVELOPER TO HEAD THE RESOLUTION TRUST CORP MR TATE 65 YEARS OLD HAS BUILT A REPUTATION FOR PROMOTING AFFORDABLE HOUSING FOR LOWINCOME PEOPLE AS THE HEAD OF THE RTC HE WOULD TAKE OVER THE GOVERNMENT'S THRIFTINDUSTRY CLEANUP AGENCY AS IT STRUGGLES TO OBTAIN ITS LAST CHUNK OF FUNDS FROM CONGRESS THE RTC ALSO LOOKS TOWARD SELLING OFF ITS LEAST VALUABLE REALESTATE ASSETS IN THE NEXT FEW YEARS THE NOMINATION WILL ENABLE ROGER ALTMAN THE DEPUTY TREASURY SECRETARY TO CONTINUE AS TEMPORARY RTC CHIEF EXECUTIVE OFFICER UNTIL THE SENATE CONFIRMS THE NEW NOMINEE MR ALTMAN WAS NAMED INTERIM RTC CHIEF ON MARCH 15 BUT HIS TENURE EXPIRED AT MIDNIGHT LAST NIGHT AND HE COULDN'T BE RENAMED UNDER THE LAW COVERING HIS SELECTION UNTIL A PERMANENT CHIEF EXECUTIVE WERE NOMINATED MR TATE IS ONE OF THE FEW REPUBLICANS NOMINATED TO EXECUTIVEBRANCH POSITIONS BY MR CLINTON HE'S A MEMBER OF THE DADE COUNTY GOP EXECUTIVE COMMITTEE AND WAS CAMPAIGN CHAIRMAN FOR REP ILEANA ROSLEHTINEN R FLA HE HAS CONTRIBUTED ABOUT 38000 TO FEDERAL CANDIDATES SINCE 1991 MOSTLY TO REPUBLICANS INCLUDING 3000 TO THE BUSHQUAYLE PRIMARYELECTION EFFORT FEDERAL ELECTION RECORDS SHOW AN ADMINISTRATION OFFICIAL SAID MR TATE WAS PICKED NOT ONLY BECAUSE HE'S STRONGLY QUALIFIED BUT BECAUSE HE HAS SUBSTANTIAL BIPARTISAN SUPPORT INCLUDING SOME PRETTY GOOD DEMOCRATIC BACKING AND THE SUPPORT OF 25 MEMBERS OF THE HEAVILY DEMOCRATIC HOUSE BLACK CAUCUS THE NOMINEE WHO HAS WIDE EXPERIENCE IN DEALING WITH TROUBLED PROPERTY IN REALESTATE BANKRUPTCIES AS WELL AS IN REALESTATE DEVELOPMENT ITSELF IS PRESIDENT OF TATE ENTERPRISES IN MIAMI HE HAS WORKED TO PROVIDE AFFORDABLE LOWINCOME HOUSING INCLUDING SUPERVISING THE USE OF RTCOWNED PROPERTY BY PEOPLE LEFT HOMELESS BY LAST YEAR'S HURRICANE ANDREW MR TATE IS A MEMBER OF A NATIONAL ADVISORY BOARD TO THE HIGHLEVEL THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD WHICH OVERSEES THE RTC AND CHAIRMAN OF A 20STATE EASTERN REGIONAL ADVISORY BOARD TO THE SAME AGENCY IN THAT CAPACITY HE HAD ADVOCATED THAT THE RTC FURTHER OPEN UP ITS ASSETSALES PROCESS TO SMALL INVESTORS A STEP THE AGENCY TOOK UNDER MR ALTMAN IN APRIL A FORMER MAYOR OF BAY HARBOR ISLANDS FLA THE NOMINEE IS A GRADUATE OF THE UNIVERSITY OF FLORIDA 9307140106 930714 RULE OF LAW NEEDED LEGAL STANDARDS ON PUNITIVE DAMAGES BY RICHARD NEELY THE SUPREME COURT'S RECENT REFUSAL TO SET CLEAR STANDARDS FOR AWARDING PUNITIVE DAMAGES IN CIVIL CASES WAS A DISAPPOINTMENT TO THOSE OF US WHO BELIEVE THAT LARGE PUNITIVE AWARDS ARE RETARDING RESEARCH DEVELOPMENT PRODUCT INTRODUCTION AND JOB CREATION BUT THE RULING WASN'T A TOTAL LOSS THE FACT THAT SEVEN JUSTICES RULED THAT THERE ARE CONSTITUTIONAL LIMITS ON PUNITIVE DAMAGES HOLDS OUT THE HOPE THAT THE COURT EVENTUALLY WILL SET SUCH STANDARDS IN A RULING ANNOUNCED JUNE 25 THE COURT ALLOWED A JUDGMENT FOR 10 MILLION IN PUNITIVE DAMAGES AGAINST TXO PRODUCTION CORP TO STAND EVEN THOUGH THE ACTUAL DAMAGES HAD BEEN ONLY 19000 TXO A UNIT OF USX CORP HAD ATTEMPTED TO STEAL GAS FROM WEST VIRGINIA LANDOWNERS BY CREATING A CLOUD ON THEIR TITLE I WROTE THE STATE APPELLATE COURT OPINION IN TXO AND WHEN THE SUPREME COURT AFFIRMED I FELT THE SAME MIXED EMOTIONS I WOULD HAVE FELT IF MY MOTHERINLAW HAD DRIVEN OVER A CLIFF IN MY NEW CADILLAC ALTHOUGH I AM GLAD TXO WAS AFFIRMED BECAUSE TXO WAS A CORPORATE BULLY AND DESERVED TO BE PUNISHED I WOULD HAVE LIKED THE SUPREME COURT TO HAVE SET MORE DEFINITE NATIONAL STANDARDS FOR PUNITIVE DAMAGES TXO IS REALLY A MONUMENT TO THE DIFFICULTY OF ESTABLISHING PRECISE GUIDELINES FOR PUNITIVE DAMAGES THE COURT'S 63 RULING PROMPTED THREE SEPARATE OPINIONS SIX JUSTICES VOTED TO AFFIRM BUT NO MORE THAN THREE COULD AGREE ON ANY ONE WAY OF LOOKING AT PUNITIVE DAMAGES IN SETTING ANY GUIDELINES THE BIG PROBLEM IS THAT PUNITIVE DAMAGES REALLY PERFORM TWO SEPARATE FUNCTIONS FIRST PUNITIVE DAMAGES ARE USED TO PUNISH REPREHENSIBLE CONDUCT SUCH AS TXO'S SECOND PUNITIVE DAMAGES ARE USED SUB SILENTIO TO OFFSET THE ENORMOUS ADVANTAGES ENJOYED BY DEFENDANTS AS A RESULT OF OUR INCOMPETENT COURT SYSTEM THE SPECTER OF A PUNITIVE AWARD TWO OR THREE TIMES THE ACTUAL DAMAGES ENCOURAGES GUILTY DEFENDANTS TO SETTLE BEFORE TRIAL AND OFFSETS THE THREAT OF ENORMOUS LITIGATION EXPENSES AND YEARS OF DELAY IN MY STATE COURT DECISION I ADDRESSED THIS DIFFICULTY BY MAKING A DISTINCTION BETWEEN TWO CATEGORIES OF GUILTY DEFENDANTS I CALLED THE LIKES OF TXO REALLY MEAN AND THE OTHERS JUST REALLY STUPID FOR NOT SETTLING BEFORE TRIAL THE REALLY MEAN CATEGORY INCLUDES BULLIES LIKE TXO THAT USE THEIR MUSCLE TO CHISEL LITTLE PEOPLE ABOUT TWO MONTHS AGO MY SECRETARY'S NEW CAR WAS HIT IN THE DOOR PANEL WHILE PARKED BOTH MY SECRETARY AND THE GUY WHO HIT HER ARE INSURED BY STATE FARM BUT STATE FARM REFUSED TO SHELL OUT 400 FOR A NEW DOOR AND INSISTED SHE ACCEPT THE OLD DOOR FILLED WITH PUTTY MY SECRETARY UNSUCCESSFULLY APPEALED THROUGH THREE LAYERS OF MANAGERS ALL OF WHOM KNEW SHE WAS ENTITLED TO A NEW DOOR SO SHE HAS SUED FOR 35000 IN PUNITIVE DAMAGES THE REALLY STUPID CATEGORY INCLUDES GUILTY DEFENDANTS THAT HAVEN'T BEEN BULLIES OR BEHAVED REPREHENSIBLY BUT STILL HAVE TO PAY PUNITIVE DAMAGES APPELLATE COURTS ALLOW THESE PUNITIVE DAMAGES BECAUSE EVEN THE BESTTEMPERED DEFENDANTS CAN BECOME BULLIES WHEN THEY REALIZE THEY CAN DELAY FOR YEARS AND FORCE PLAINTIFFS TO SPEND HUNDREDS OF THOUSANDS OF DOLLARS THE THREAT OF PUNITIVE DAMAGES PROPERLY ENCOURAGES SUCH DEFENDANTS TO SETTLE OUT OF COURT BUT THE PROBLEM WITH OUR CURRENT VAGUE STANDARDS ON PUNITIVE DAMAGES IS THAT THEY ENCOURAGE ABUSE PUNITIVE DAMAGES ARE A NORMAL COMPONENT OF PRODUCT LIABILITY LITIGATION IN THE TYPICAL PRODUCT LIABILITY CASE THERE IS AN INSTATE PLAINTIFF AN INSTATE JUDGE AN INSTATE JURY INSTATE WITNESSES INSTATE SPECTATORS AND AN OUTOFSTATE DEFENDANT IT TAKES LITTLE IMAGINATION TO PREDICT WHO WILL LOSE OR TO PREDICT THAT THE SUBSTANTIVE STATE LAW WILL GROW INCREASINGLY FAVORABLE TO INSTATE PLAINTIFFS UNCHECKED PUNITIVE DAMAGES ALSO DISCOURAGE INNOVATION BY WELLMEANING COMPANIES FOR PRODUCTS THAT ARE UNTRIED OR SUSCEPTIBLE TO MISUSE THE LIABILITY EXPOSURE IS NEARLY IMPOSSIBLE TO CALCULATE IN MANY INDUSTRIES PRODUCT LIABILITY INSURANCE IS EITHER EXTREMELY EXPENSIVE OR UNAVAILABLE A COMPANY MAY WELL DECIDE THAT IT CAN'T AFFORD THE RISK OF PUTTING A NEW PRODUCT ON THE MARKET WHEN INNOVATIVE COMPANIES ARE COWED BY THE PROSPECT OF OPENENDED LIABILITY THERE IS AN INCALCULABLE LOSS TO THE NATIONAL ECONOMY IN RESEARCH AND DEVELOPMENT NOT PURSUED NEW TECHNOLOGIES NOT DEVELOPED NEW PRODUCTS NOT INTRODUCED MARKET SHARES NOT DOMINATED AND NEW JOBS NOT CREATED IN TXO SEVEN MEMBERS OF THE COURT RULED THAT THERE ARE CONSTITUTIONAL LIMITS TO PUNITIVE DAMAGES BECAUSE THREE OF THE SEVEN BELIEVED THOSE LIMITS WERE EXCEEDED IN TXO ANOTHER CASE HAS A FAIR CHANCE OF GAINING SUPREME COURT REVIEW IN THE 1991 HASLIP DECISION THE COURT SUGGESTED THAT A FOURTOONE RATIO OF PUNITIVE TO ACTUAL DAMAGES IS ABOUT THE OUTER LIMIT OF WHAT IS CONSTITUTIONALLY ACCEPTABLE IN MY OPINION WHEN THE SUPREME COURT SAID FOURTOONE IN HASLIP IT WAS THINKING REALLY STUPID AND WHEN IT AFFIRMED TXO 526TO1 IT WAS THINKING REALLY MEAN IN OTHER WORDS WHILE THE GENERAL STANDARD FOR PUNITIVE DAMAGES OUGHT TO BE FOURTOONE IT'S OK TO INCREASE THE PENALITIES FOR DEFENDANTS THAT ARE ESPECIALLY VICIOUS JUSTICE ANTHONY KENNEDY'S CONCURRING OPINION IN TXO OFFERS SOME GUIDANCE FOR MAKING SUCH A DISTINCTION HE SAYS THAT IN REVIEWING PUNITIVE DAMAGES COURTS SHOULD LOOK TO THE MOTIVES OF THE JURY TO DETERMINE WHETHER IMPROPER CONSIDERATIONS PROMPTED HIGH AWARDS IF I WERE A LAWYER TRYING A CASE WITH BIG PUNITIVES I WOULD ASK THE COURT TO ALLOW ME TO QUESTION THE JURY AS TO THEIR REASONS THAT PROCEDURE IS NO MORE INTRUSIVE THAN THE PROCEDURES SURROUNDING CAPITAL PUNISHMENT IN MANY STATES IN ANY CASE WHERE PUNITIVE DAMAGES ARE LARGE THE DEFENSE SHOULD ASK FOR A JURY INQUIRY AND APPEAL THAT ISSUE IF THE REQUEST IS DENIED NEITHER TRIAL NOR APPELLATE JUDGES WILL BE LED TO REVERSE BY ONE JUROR'S INARTICULATE OR INFELICITOUS COMMENT BUT EFFECTIVE QUESTIONING SHOULD DISCLOSE WHETHER THE JURY HAS MET JUSTICE KENNEDY'S STANDARDS THE UNIVERSE OF POSSIBLE HUMAN ACTIVITY IS IMMENSE SO DECISIONAL LAW TENDS TO BE MADE IN BITS AND PIECES IN THE CASE OF THE LAW REGARDING PUNITIVE DAMAGES SO FAR THE BITS HAVE HELPED FOLKS LIKE MY SECRETARY AND THE LITTLE GUYS BATTLING TXO BUT HAVE LEFT FAR TOO MANY CASUALTIES ALONG THE WAY THAT'S UNLIKELY TO CHANGE UNTIL THE SUPREME COURT PROVIDES US WITH SOME CLEARER GUIDANCE JUSTICE NEELY OF THE WEST VIRGINIA SUPREME COURT OF APPEALS IS THE AUTHOR OF THE PRODUCT LIABILITY MESS HOW BUSINESS CAN BE RESCUED FROM STATE COURT POLITICS FREE PRESS 1988 9307140105 930714 ABREAST OF THE MARKET STOCKS END MIXED AFTER INVESTORS SHRUG OFF INFLATION DATA EARNINGS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED YESTERDAY AS INVESTORS IGNORED A TAME REPORT ON INFLATION VOLUME ON THE BIG BOARD SWELLED TO 236730000 SHARES FROM 202300000 SHARES MONDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 983 TO 953 STOCKS OPENED MIXED SOON AFTER THE LABOR DEPARTMENT REPORTED THAT PRICES AT THE PRODUCER LEVEL TUMBLED 03 LAST MONTH EXCLUDING THE VOLATILE FOOD AND ENERGY COMPONENTS PRODUCER PRICES SLIPPED 01 IN JUNE SUGGESTING TO ECONOMISTS THAT THE CORE RATE OF INFLATION IS ALSO UNDER CONTROL STOCK ANALYSTS SAID THE BENIGN INFLATION REPORT WAS WIDELY EXPECTED PROMPTING INVESTORS TO FOLLOW THE OLD ADAGE OF BUY ON THE RUMOR SELL ON THE NEWS BUT THE MARKET ALSO FAILED TO RESPOND TO ENCOURAGING SECONDQUARTER EARNINGS REPORTS FROM VARIOUS COMPANIES ERIC MILLER CHIEF INVESTMENT OFFICER AT DONALDSON LUFKIN & JENRETTE SECURITIES SAID INVESTORS ARE HESITATING BECAUSE IT IS STILL TOO EARLY TO TELL HOW THE SECOND QUARTER WILL SHAPE UP THERE'S A TENDENCY FOR POSITIVE EARNINGS REPORTS TO COME IN EARLIER AND NEGATIVE REPORTS TO HIT LATER SAID MR MILLER GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG SAID SHE THINKS POLITICS ALSO ARE HOLDING INVESTORS BACK THE STOCK MARKET IS TAKING A VERY CONSERVATIVE VIEW WAITING TO SEE WHAT COMES OUT OF CONGRESS SHE SAID MS DUDACK NOTED THAT STOCKS HAVE BEEN LAGGING BONDS FOR WEEKS THAT WOULD SUGGEST SOME FEARS OF AN ECONOMIC SLOWDOWN ARE BEING BUILT INTO THE MARKETPLACE SHE SAID ADDING THAT SHE SUSPECTS INVESTORS ARE WORRIED PRESIDENT CLINTON'S ECONOMIC PACKAGE WILL SLOW GROWTH SEVERAL COMPANIES REPORTED STRONG SECONDQUARTER PROFITS MOTOROLA JUMPED 2 5/8 TO 89 1/2 AFTER IT REPORTED LATE MONDAY THAT SECONDQUARTER NET INCOME SOARED 57 AS WORLDWIDE DEMAND FOR ITS SEMICONDUCTORS CELLULAR PHONES AND PAGERS CONTINUED TO SURGE BUT STOCK PRICES OF TWO BROKERAGE COMPANIES LOST GROUND DESPITE SIZZLING EARNINGS FALLING STEADILY FROM ITS OPENING PRICE AND 52WEEK HIGH OF 86 1/8 MERRILL LYNCH SLID 1 TO 84 5/8 EVEN AS IT REPORTED RECORD SECONDQUARTER NET AND PAINEWEBBER LOST 1/8 TO 29 AFTER POSTING A SECONDQUARTER PROFIT OF 111 A SHARE COMPARED WITH 93 CENTS A SHARE A YEAR EARLIER THE STOCK HAD HIT A 52WEEK HIGH OF 29 3/4 MONDAY ANALYSTS SAID THE BUOYANT EARNINGS WERE WIDELY ANTICIPATED LEADING INVESTORS TO SELL BOTH STOCKS ON THE NEWS AMONG OTHER COMPANIES ANNOUNCING EARNINGS GENERAL ELECTRIC ADVANCED 5/8 TO 98 WHILE INTERNATIONAL PAPER DROPPED 5/8 TO 63 1/8 GENERAL ELECTRIC'S SECONDQUARTER NET TOTALED 156 A SHARE THE AVERAGE ESTIMATE OF 12 ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD PUT THE NUMBER AT 153 INTERNATIONAL PAPER'S SECONDQUARTER EARNINGS OF 62 CENTS A SHARE WERE ALSO SLIGHTLY HIGHER THAN THE CONSENSUS ESTIMATE BUT BELOW THE 92 CENTS REPORTED A YEAR EARLIER MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO SAID HE SAW SOME STRENGTH IN DEFENSIVE GROUPS SUCH AS FOOD AND DRUG STOCKS HE ATTRIBUTED THAT TO A FLIGHT FROM SOME MORE SPECULATIVE ISSUES SUCH AS NASDAQLISTED SOFTWARE DEVELOPER LEGENT WHICH PLUNGED 10 1/8 OR 36 TO 17 3/4 ON A DISAPPOINTING EARNINGS FORECAST GENERAL MILLS JUMPED 1 3/8 TO 66 5/8 CONAGRA ADDED 5/8 TO 25 1/2 AND WRIGLEY CLIMBED 1/2 TO 32 1/4 WHILE ELI LILLY JUMPED 1 1/4 TO 48 AMERICAN HOME PRODUCTS GAINED 7/8 TO 64 5/8 AND JOHNSON & JOHNSON ADVANCED 3/4 TO 40 5/8 DEAN WITTER DISCOVER SLIPPED 1 7/8 TO 36 7/8 ON HEAVY VOLUME THE SESSION MARKED THE FIRST DAY OF TRADING AFTER SEARS ROEBUCK SPUN OFF ITS REMAINING 80 STAKE IN DEAN WITTER TO SHAREHOLDERS SEARS ROSE 1/4 TO 42 1/2 THAT PRICE NOW REFLECTS THE DISTRIBUTION OF THE DEAN WITTER SHARES BANK SHARES WERE MOSTLY LOWER EVEN THOUGH TWO COMPANIES BANK OF NEW YORK AND ATLANTA'S SUNTRUST BANKS SHOWED EARNINGS GROWTH BANK OF NEW YORK POSTED SECONDQUARTER NET OF 142 A SHARE UP FROM 105 A YEAR EARLIER THE COMPANY ALSO RAISED ITS QUARTERLY DIVIDEND TO 45 CENTS FROM 38 CENTS BANK OF NEW YORK SHARES ENDED 1/2 LOWER AT 59 3/8 SUNTRUST LOST 1 1/4 TO 46 1/2 ALTHOUGH THE BANK'S SECONDQUARTER EARNINGS PER SHARE JUMPED 15 COMPUTER ASSOCIATES INTERNATIONAL SKIDDED 1 3/8 TO 28 3/8 OPPENHEIMER & CO ANALYST JIM POYNER BEGAN COVERAGE OF THE STOCK WITH A RATING OF UNDERPERFORMER WEYERHAEUSER ALSO DECLINED ON AN ANALYST MOVE THE STOCK FELL 1 1/2 TO 42 AFTER SMITH BARNEY PULLED IT FROM THE RECOMMENDED LIST CUTTING ITS RATING TO OUTPERFORM FROM BUY PROCTER & GAMBLE FELL 1 1/2 TO 51 1/2 THE COMPANY SAID IT PLANS TO LOWER PRICES ON ITS LIQUID LAUNDRY DETERGENTS BY 3 TO 15 EFFECTIVE AUG 2 HOME SHOPPING NETWORK TOPPED THE BIG BOARD MOST ACTIVE LIST FOR A SECOND DAY GAINING 1 1/8 TO 14 3/4 ON 39 MILLION SHARES THE ST PETERSBURG FLA COMPANY MONDAY RECEIVED A MERGER PROPOSAL FROM NASDAQLISTED QVC NETWORK QVC SURGED 3 3/4 TO 71 1/2 MAGNETEK SKIDDED 1 TO 17 AFTER LEHMAN BROTHERS DOWNGRADED THE LOS ANGELES ELECTRICAL EQUIPMENT MAKER'S STOCK TO NEUTRAL FROM BUY 9307140104 930714 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE WRANGLING OVER DEFICIT BILL TRIGGERS TALK OF SCALING BACK CLINTON'S TARGET BY JACKIE CALMES AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS' DIFFICULTIES IN REACHING AGREEMENT ON A DEFICITREDUCTION PACKAGE HAVE SPAWNED TALK OF RETREATING FROM PRESIDENT CLINTON'S FIVEYEAR GOAL OF 500 BILLION IN SAVINGS LOUISIANA SEN JOHN BREAUX AN INFLUENTIAL DEMOCRAT ON THE TAXWRITING SENATE FINANCE COMMITTEE YESTERDAY SUGGESTED A BUDGETCUTTING TARGET OF 400 BILLION OVER FIVE YEARS SUCH COMMENTS REFLECT THE HEAT THAT SOME CONGRESSIONAL DEMOCRATS GOT FROM VOTERS OVER THE JUSTCOMPLETED FOURTH OF JULY RECESS ABOUT THE MIX OF TAX INCREASES AND SPENDING CUTS IN THE HOUSE AND SENATE VERSIONS OF MR CLINTON'S PROGRAM I DON'T THINK A LOT OF PEOPLE BACK HOME ARE GOING TO SAY BY GOLLY IT SHOULD HAVE BEEN 500 INSTEAD OF 400' SEN BREAUX SAID I MEAN THEY'RE NOT AWARE OF THAT NUMBER THEY ARE AWARE OF THE TAX NUMBER AND THEY ARE AWARE OF THE SPENDING CUTS THAT AFFECT THEM WITH A HOUSESENATE CONFERENCE COMMITTEE DUE TO BEGIN WORK LATER THIS WEEK ON A COMPROMISE OF THE TWO CHAMBERS' BILLS CLINTON ADMINISTRATION OFFICIALS AND DEMOCRATIC LEADERS YESTERDAY STOOD BY THE PRESIDENT'S GOAL A SENIOR WHITE HOUSE OFFICIAL SAID THE PRESIDENT WANTS THE BILL TO BE HISTORIC IN ITS LEVEL OF DEFICIT REDUCTION TREASURY SECRETARY LLOYD BENTSEN AT THE CAPITOL TO BRIEF SOME LAWMAKERSON MR CLINTON'S RECENT ASIAN SUMMIT REACTED WITH SOMETHING LIKE SHOCK WHEN TOLD THAT SEN BREAUX HAD SUGGESTED REDUCING THE TARGET TO 400 BILLION TO HOW MUCH HE ASKED REPORTERS MR BENTSEN STUCK BY THE ADMINISTRATION FIGURE SAYING THAT 500 BILLION I THINK IS A GOOD TARGET SOON AFTERWARD HE HAPPENED TO ENTER A PRIVATE SENATE ELEVATOR WITH SEN BREAUX AND JOKINGLY GRABBED HIM AND POINTED HIS FINGER AT HIS FACE AS IF TO SCOLD HIM AS THE DOORS CLOSED WHITE HOUSE BUDGET DIRECTOR LEON PANETTA MEETING WITH DEFICITCONSCIOUS DEMOCRATIC FRESHMEN IN THE HOUSE REEMPHASIZED THE ADMINISTRATION'S COMMITMENT TO A 500 BILLION FIVEYEAR PACKAGE ACCORDING TO UTAH REP KAREN SHEPHERD I FEEL MUCH BETTER SHE SAID I THINK WE OUGHT TO HIT THE TARGET HOUSE SPEAKER THOMAS FOLEY D WASH SAID SEPARATELY AND SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE SAID I THINK IT'S CLEAR THAT IT'S GOING TO BE SOMEWHERE IN THAT RANGE A 400 BILLION BUDGETCUTTING PACKAGE WOULD BE TOO SMALL FOR SOME DEMOCRATIC DEFICIT HAWKS BUT OTHER DEMOCRATS PRIVATELY HAVE SPECULATED ABOUT A FINAL PACKAGE THAT HAS 20 BILLION TO 30 BILLION LESS IN DEFICIT REDUCTIONS THAN MR CLINTON SEEKS A SMALLER PACKAGE DEPENDING ON ITS SIZE WOULD ALLOW DEMOCRATS TO DROP OR LIMIT THE SIZE OF ANY ENERGY TAX OR GASOLINE TAX INCREASE THE MAIN AREA OF CONTROVERSY AND TO MAKE ROOM FOR INITIATIVES BENEFITING POOR PEOPLE AND BUSINESSES THAT VARIOUS PARTY FACTIONS INSIST UPON AS THE PRICE OF THEIR SUPPORT AT THE SAME TIME THE FINANCIAL MARKETS WOULD REACT NEGATIVELY TO ANY SIGNIFICANT RETREAT FROM THE PRESIDENT'S DEFICITCUTTING GOAL AND MANY DEMOCRATS BELIEVE RETREAT WOULD SEND A BAD MESSAGE POLITICALLY ABOUT THE PARTY'S BUDGETCUTTING RESOLVE I AM VERY FEARFUL THAT IF WE TAKE THAT ROUTE WE WOULD BE PLAYING RIGHT INTO THE REPUBLICANS' HANDS SAID NEBRASKA SEN JAMES EXON A CONSERVATIVE DEMOCRAT THE REPUBLICANS HAVE ALREADY CAPTURED THE AGENDA ON THIS OTHER DEMOCRATS CONTINUED TO EXPRESS FRUSTRATION THAT REPUBLICANS SUCCESSFULLY HAVE PORTRAYED THE BILL AS A TAXANDSPEND PACKAGE WHILE THE CLINTON ADMINISTRATION HASN'T GOTTEN OUT THE MESSAGE THAT MOST OF THE BILL'S TAX INCREASES HIT BUSINESSES AND HIGHINCOME INDIVIDUALS REPUBLICANS AND ROSS PEROT AND OTHERS HAVE BEEN DOING A PRETTY GOOD JOB OF STIRRING UP DISCONTENT SAID SEN MAX BAUCUS D MONT HE SAID MR CLINTON NEEDS TO DO A BETTER SALES JOB AND AS PROOF HE SAID NONE OF THE MONTANANS WHO HAD COMPLAINED TO HIM RECENTLY ABOUT THE BILL'S TAXES WOULD BE AFFECTED BY THE PROPOSED INCOMETAX INCREASES WHITE HOUSE OFFICIALS ACKNOWLEDGE THAT THEY MUST COUNTER THE GOP ATTACKS AT THE PRESIDENT'S REQUEST VICE PRESIDENT AL GORE YESTERDAY WAS CHAIRMAN OF A MEETING WITH THE WHITE HOUSE STAFF TO EMPHASIZE THE NEED FOR BETTER COMMUNICATIONS AIDES SAID A BOILER ROOM OPERATION HEADED BY DEPUTY TREASURY SECRETARY ROGER ALTMAN WOULD DIRECT DAILY ACTIVITIES IN A SIGN OF THE LEVEL OF ADMINISTRATION CONCERN WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY HIMSELF YESTERDAY ATTENDED A RELATIVELY INCONSEQUENTIAL MEETING AT THE CAPITOL ABOUT HOW TO INFORM LAWMAKERS ABOUT THE DETAILS WHEN THE CONFERENCE COMMITTEE REACHES A COMPROMISE THE DEMOCRATS HOPE TO PASS A BILL BEFORE CONGRESS RECESSES IN EARLY AUGUST MEANWHILE HOUSE DEMOCRATS WILL CAUCUS TODAY ABOUT A PROPOSAL FROM A COALITION OF LIBERALS AND CONSERVATIVES TO DROP ANY ENERGY TAX EITHER MR CLINTON'S PROPOSED BROADBASED TAX ON ENERGY CONSUMPTION AS PASSED BY THE HOUSE OR THE SENATE'S ALTERNATIVE 43 CENTSAGALLON INCREASE IN THE TAX ON GASOLINE AND OTHER TRANSPORTATION FUELS THE GROUP WANTS TO RAISE REVENUES INSTEAD BY ADDING ONE PERCENTAGE POINT TO MR CLINTON'S PROPOSED INCOMETAX INCREASES FOR CORPORATIONS AND WEALTHY INDIVIDUALS IT ISN'T LIKELY THAT NEGOTIATORS WILL DROP AN ENERGY TAX ENTIRELY ALTHOUGH THE PRESSURE BROUGHT BY SUCH OPPOSITION GROUPS OF DEMOCRATS COULD SERVE TO HOLD DOWN THE SIZE OF THE FINAL LEVY IN THE SENATE BUDGET COMMITTEE CHAIRMAN JIM SASSER D TENN HAD PROPOSED IN MEETINGS WITH FELLOW DEMOCRATS DROPPING ANY ENERGY TAX AND SUBSTITUTING A LIMITATION ON THE DEDUCTIONS THAT UPPERINCOME TAXPAYERS CAN CLAIM BOTH OPTIONS WOULD RAISE ABOUT 22 BILLION OVER FIVE YEARS BUT SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY OPPOSES THE IDEA OF LIMITING DEDUCTIONS WHICH IS AN UNPOPULAR ONE IN A STATE LIKE HIS WITH MANY WEALTHY RESIDENTS AND WITH HIGH STATE AND LOCAL TAXES THAT CAN BE DEDUCTED 9307140103 930714 WHO'S NEWS NIKON CORP NIKON CORP TOKYO JACK M ABRAMS 55 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER OF NIKON INC THE US SUBSIDIARY OF THIS MAKER OF CAMERAS AND OCULAR EQUIPMENT MR ABRAMS WILL CONTINUE AS EXECUTIVE VICE PRESIDENT OF THE SUBSIDIARY 9307140102 930714 FORMER EXECUTIVES OF HALSEY ARE INDICTED FOR OBSTRUCTING FDA BALTIMORE THE FORMER PRESIDENT OF HALSEY DRUG CO AND FOUR OTHER FORMER EXECUTIVES WERE INDICTED BY A FEDERAL GRAND JURY HERE FOR ALLEGEDLY OBSTRUCTING FOOD AND DRUG ADMINISTRATION REGULATORS JAY MARCUS THE FORMER PRESIDENT OF THE NEW YORK COMPANY AND THE OTHERS WERE CHARGED WITH SHIPPING ADULTERATED AND UNAPPROVED NEW DRUGS ACROSS STATE LINES MAKING FALSE STATEMENTS TO THE FDA AND OBSTRUCTING AN FDA INSPECTION ACCORDING TO THE US ATTORNEY IN MARYLAND EACH DEFENDANT COULD FACE MORE THAN 10 YEARS IN PRISON AND 500000 IN FINES THE INDICTMENT ALLEGES THAT WHEN PRODUCTS FAILED QUALITY CONTROL TESTING HALSEY WOULD RETEST THEM UNTIL THEY PASSED OR WOULD REWORK THE BATCHES WITHOUT REQUIRED FDA APPROVALS MR MARCUS'S LAWYER DECLINED TO COMMENT ON THE INDICTMENT LAST MONTH HALSEY AGREED TO PAY A 25 MILLION FINE TO SETTLE A FEDERAL INQUIRY AND TO PLEAD GUILTY TO FIVE COUNTS RELATING TO ALTERING ONE DRUG PRODUCT IT ALSO ENTERED INTO A CONSENT DECREE WITH THE FDA TO RESOLVE CERTAIN RECORDKEEPING AND MANUFACTURING ISSUES THE NEW INDICTMENT IS THE LATEST IN A SERIES OF PROSECUTIONS STEMMING FROM INVESTIGATIONS OF THE GENERIC DRUG INDUSTRY 9307140101 930714 INTERNATIONAL GERMAN COURT DROPS CASE AGAINST EIGHT INVOLVING IRAQ ARMS DARMSTADT GERMANY REUTER A GOVERNMENT CASE AGAINST EIGHT GERMANS CHARGED WITH HELPING IRAQ BUILD A CHEMICAL WEAPONS ARSENAL COLLAPSED BECAUSE OF LACK OF EXPERT TESTIMONY PROSECUTORS SAID THEY SAID THE CASE'S DISMISSAL BY A DARMSTADT COURT WAS UPHELD BY A HIGHER REGIONAL COURT IN NEARBY FRANKFURT MONDAY AFTER MORE THAN A YEAR OF PROCEEDINGS A SPOKESMAN FOR DARMSTADT PROSECUTORS SAID THEY WOULD SEEK TO BRING THE CASE AGAIN BY EARLY 1994 TO AVOID A STATUTE OF LIMITATIONS THAT RUNS OUT BY AUGUST 1994 DARMSTADT JUDGES EARLIER CANCELED THE TRIAL AFTER FAILING TO FIND AN INDEPENDENT EXPERT ACCEPTABLE TO DEFENSE LAWYERS AND PROSECUTORS THE EXPERT'S JOB WOULD HAVE INVOLVED TELLING JUDGES WHETHER EQUIPMENT SOLD TO IRAQ WAS CAPABLE OF MAKING CHEMICAL ARMS AS THE PROSECUTION CLAIMS OR WAS MEANT FOR CIVILIAN PRODUCTION THE DEFENDANTS CHARGED AFTER THE GULF WAR IN 1991 WITH VIOLATING EXPORT LAWS BY SELLING IRAQ EQUIPMENT TO PRODUCE CHEMICAL WEAPONS WENT TO TRIAL LAST APRIL IF CONVICTED THEY WOULD FACE UP TO THREE YEARS IN PRISON PROSECUTORS ALLEGED THAT THE DEFENDANTS PLAYED A KEY ROLE BETWEEN 1982 AND 1988 IN SUPPLYING IRAQ WITH EQUIPMENT TO PRODUCE POISONOUS GASES AND LOAD THEM INTO ARTILLERY SHELLS DEFENSE LAWYERS SAID THE SALES WERE MEANT FOR PRODUCTION OF NONCOMBAT MATERIALS INCLUDING PESTICIDES PROSECUTORS SAID THREE OF THE DEALS WERE VALUED AT A TOTAL OF 275 MILLION MARKS 159 MILLION 9307140100 930714 YIELDS ON CDS END WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCHED UP TO 273 FROM 272 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 475 FROM 478 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EASED TO 310 FROM 312 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD CREPT UP TO 451 FROM 450 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLID TO 280 FROM 282 ON FIVEYEAR JUMBOS THE AVERAGE REMAINED AT 478 ACCORDING TO BANXQUOTE 9307140099 930714 BUSINESS BRIEFS INVACARE CORP ACQUIRED GSI INC A MAKER OF SPECIALIZED HEALTHCARE BEDDING TERMS WEREN'T DISCLOSED CMS ENERGY CORP'S OIL AND GAS EXPLORATION UNIT HAS ENTERED AN EXPLORATION AND DEVELOPMENT AGREEMENT WITH MERCURY EXPLORATION CO TO DRILL AND TEST AS MANY AS EIGHT WELLS IN MICHIGAN FOR GAS PRODUCTION DENOVO CORP'S CONSUMERS PAPER CORP SUBSIDIARY RECEIVED ALL NECESSARY GOVERNMENT ENVIRONMENTAL APPROVALS TO BUILD A WASTEPAPER DEINKING AND TISSUE MANUFACTURING FACILITY IN REDCLIFF ALBERTA CONVEX COMPUTER CORP ESTABLISHED A SEISMIC DATAPROCESSING CENTER IN SINGAPORE WITH CHINA NATIONAL PETROLEUM CORP TERMS WEREN'T DISCLOSED BANK OF BOSTON CORP COMPLETED THE ACQUISITION OF MULTIBANK FINANCIAL CORP OF DEDHAM MASS FOR 2621 MILLION 9307140098 930714 WHO'S NEWS NATIONAL PIZZA CO NATIONAL PIZZA CO PITTSBURG KAN J MITCHELL BOYD PRESIDENT OF THIS RESTAURANT FRANCHISER AND OPERATOR WAS ALSO NAMED CHIEF EXECUTIVE OFFICER MR BOYD 54 YEARS OLD SUCCEEDS GENE BICKNELL 60 A COMPANY SPOKESMAN SAID MR BICKNELL PASSED THE POST TO MR BOYD IN RECOGNITION OF MR BOYD'S PERFORMANCE MR BICKNELL'S AGE WAS ALSO A FACTOR THE SPOKESMAN SAID BUT HE ADDED THAT MR BICKNELL DOESN'T PLAN TO RETIRE SOON AND WILL REMAIN AS CHAIRMAN 9307140097 930714 INSIDE TRACK INGERSOLL OFFICERS TRIMMED HOLDINGS NEAR STOCK'S HIGH BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CHAIRMAN AND TWO OTHER OFFICERS OF INGERSOLLRAND CO PARED THEIR HOLDINGS BY AN AVERAGE OF 26 IN MAY AND JUNE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THE SALES BY THE INGERSOLL EXECUTIVES AT PRICES NEAR THE STOCK'S 52WEEK HIGH OF 36625 COME AMID GROWING MARKET CONCERNS ABOUT CYCLICAL STOCKS IN A SLOWGROWTH ECONOMY INVESTORS HAVE BEEN BETTING THAT PROFITS AT MANUFACTURING COMPANIES LIKE INGERSOLL WOULD RISE IN AN ECONOMIC RECOVERY BUT THE SLUGGISH RECOVERY CALLS THOSE BETS INTO QUESTION ON JUNE 10 INGERSOLL CHAIRMAN THEODORE BLACK SOLD 15000 SHARES OR 16 OF HIS HOLDINGS IN THE CAPITAL GOODS COMPANY AT AN AVERAGE OF 34 A SHARE SEC DATA SHOW VICE PRESIDENT LARRY PITSCH SOLD 7200 SHARES OR 31 OF HIS HOLDINGS AT 3282 IN EARLY MAY AT ABOUT THE SAME TIME VICE PRESIDENT GERALD SWIMMER SOLD 10000 SHARES OR 30 OF HIS HOLDINGS AT 3250 THE FILINGS SHOW THE SALES WERE NOT RELATED TO THE EXERCISE OF STOCK OPTIONS THOMAS MCBRIDE CHIEF FINANCIAL OFFICER OF THE WOODCLIFF LAKE NJ COMPANY SAID ALL THREE EXECUTIVES SOLD FOR PERSONAL REASONS UNRELATED TO INGERSOLL'S PROSPECTS MR BLACK'S SALE IS MINOR MR MCBRIDE SAID MR BLACK DECLINED TO COMMENT BUT IN AN INTERVIEW APPEARING IN THE JUNE 21 ISSUE OF BARRON'S MR BLACK SAID WE SEE ALL THE POSITIVES COMING TOGETHER WE HAVE NEVER HAD AN OPPORTUNITY LIKE THIS BEFORE THINGS ARE LOOKING RIGHT MR MCBRIDE NOTED THAT MR BLACK 64 WAS BEGINNING TO STRAIGHTEN OUT HIS FINANCIAL SCENARIO FOR HIS POSTRETIREMENT YEARS SOMETIME IN THE NEXT FEW YEARS HE WILL RETIRE HE SAID MR SWIMMER HE ADDED WAS BUYING AND REFURBISHING A HOUSE MR MCBRIDE SAID INGERSOLL IS COUNTING ON STRONG DEMAND FROM THE DOMESTIC AUTOMOTIVE AND HOUSING SECTORS AS WELL AS FROM A RECOVERING ENERGY SECTOR TO BOOST SALES AND PROFITS AMONG ITS BUSINESSES INGERSOLL SUPPLIES BALL AND NEEDLE BEARINGS TO CAR MANUFACTURERS AND INDUSTRIAL PUMPS TO OIL AND GAS DRILLERS THERE'S TREMENDOUS GROWTH OPPORTUNITY AT THE COMPANY MR MCBRIDE SAID WEAK RESULTS FROM OPERATIONS IN RECESSIONMIRED EUROPE SHOULD BE MORE THAN OFFSET BY STRONG DOMESTIC OPERATIONS HE SAID FOR THE FIRST QUARTER THE COMPANY POSTED A 20 GAIN IN NET INCOME ON AN ADJUSTED 10 RISE IN REVENUE WITH MOST OF THE EARNINGS GROWTH COMING FROM STRONG PERFORMANCES IN THE COMPANY'S AUTOMOTIVE AND HOMECONSTRUCTION EQUIPMENT DIVISIONS EARNINGS EXCLUDING A ONETIME CHARGE ASSOCIATED WITH AN ACCOUNTING CHANGE FOR POSTRETIREMENT BENEFITS LAST YEAR WERE 24 CENTS A SHARE COMPARED WITH 20 CENTS A SHARE A YEAR EARLIER MANY ANALYSTS HAD EXPECTED INGERSOLL'S FIRSTQUARTER NET TO COME IN AT AROUND 27 CENTS TO 28 CENTS A SHARE BUT THE EUROPEAN WEAKNESS AND COMPETITIVE PRICING IN THE DOMESTIC PUMP INDUSTRY SUBSEQUENTLY FORCED ANALYSTS' ESTIMATES DOWN THOSE NEGATIVE FACTORS HAVE CONTINUED INTO THE SECOND QUARTER THAT'S WHAT HAS LIMITED THE STOCK TO A RANGE OF 30 TO 35 A SHARE SAID TOBIAS LEVKOVICH MACHINERY ANALYST WITH SMITH BARNEY SINCE MR BLACK SOLD HIS SHARES INGERSOLL'S STOCK INITIALLY MOVED HIGHER TO AROUND 35 ON THE NEW YORK STOCK EXCHANGE BUT SUBSEQUENTLY DROPPED IN JULY TO ITS CURRENT LEVEL THE STOCK CLOSED YESTERDAY AT 32125 DOWN 25 CENTS INGERSOLL HAS PERFORMED BETTER THAN THE MARKET BUT IT HAS UNDERPERFORMED ITS PEER GROUP SAID MR LEVKOVICH THEY HAVE A NUMBER OF BUSINESSES THAT ARE VERY WEAK CATERPILLAR INC'S STOCK FOR INSTANCE ROSE 385 IN THE FIRST HALF WHILE INGERSOLL SHARES HAVE APPRECIATED A MUCH SMALLER 16 HE SAID NOTING THAT INGERSOLL IS A GOOD HIGHQUALITY WELLMANAGED COMPANY THE SMITH BARNEY ANALYST NEVERTHELESS SAID THE COMPANY HAS MORE UNITS NOT DOING WELL THAN DOING WELL HE SAID INGERSOLL REMAINS VULNERABLE TO FURTHER EROSION IN EUROPEAN MARKETS THE QUESTION IS WHAT DO YOU PAY FOR THE STOCK SAID MR LEVKOVICH FOR NOW HE'S NOT WILLING TO DESIGNATE THE STOCK AS A BUY PREFERRING TO ATTACH AN OUTPERFORM RATING IF THE STOCK WERE TO WEAKEN TO AROUND 30 WE'D BUY IT AND BE MORE AGGRESSIVE HE SAID NOTING THAT HE EXPECTS FULLYEAR PERSHARE EARNINGS OF 155 AND 195 NEXT YEAR IN 1992 INGERSOLL EARNED 111 A SHARE ELI LUSTGARTEN WHO TRACKS THE STOCK FOR PAINEWEBBER SAID THAT FIRM HAS APPLIED AN UNATTRACTIVE RATING TO INGERSOLL WE HAD BEEN BIG BULLS ON INGERSOLL SINCE MIDDECEMBER 1991 WHEN THE STOCK WAS 20 BUT WE PULLED OUR BUY RECOMMENDATION WHEN THE STOCK SPIKED UP TO 36 FROM 32 IN EARLY NOVEMBER HE SAID MR LUSTGARTEN SAID HE BECAME NERVOUS ABOUT THE EFFECTS OF A SLUGGISH ECONOMY ON INGERSOLL AS 1992 DREW TO A CLOSE AND DOWNGRADED THE STOCK THERE'S SIGNIFICANT UNCERTAINTY AS TO WHETHER OUR EARNINGS ESTIMATE OF 2 A SHARE FOR NEXT YEAR IS ACHIEVABLE GIVEN THE SLUGGISH DOMESTIC ECONOMY AND WEAKNESS ABROAD HE SAID 9307140095 930714 INTERNATIONAL TAIWAN AEROSPACE GETS GOVERNMENT SUPPORT FOR UK JOINT VENTURE SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN'S GOVERNMENT HAS DECIDED TO SUPPORT A PLAN BY TAIWAN AEROSPACE CORP TO SET UP A 500 MILLION JOINT VENTURE WITH BRITISH AEROSPACE PLC A SENIOR OFFICIAL SAID YIN CHIMING DEPUTY DIRECTOR OF THE GOVERNMENT INDUSTRIAL DEVELOPMENT BUREAU SAID A FEASIBILITY STUDY PREPARED BY SCHOLARS AND BUSINESS CONSULTANTS CONCLUDED THAT TAIWAN CAN BENEFIT FROM THE JOINT VENTURE THAT WILL BUILD THE NEW RJ MODEL PASSENGER JETS ACCORDING TO MR YIN THE STUDY SHOWED THERE IS A MARKET FOR THE PASSENGER JETS AND THAT THE TECHNOLOGIES ACQUIRED FROM THE JOINT VENTURE COULD HELP TAIWAN DEVELOP ITS BUDDING AEROSPACE INDUSTRY THE STUDY WILL BE PRESENTED TO A PARLIAMENTARY COMMITTEE FRIDAY AND THE CABINET LATER THIS MONTH FOR APPROVAL HE SAID TAIWAN AEROSPACE 29OWNED BY THE GOVERNMENT SIGNED A CONTRACT WITH BRITISH AEROSPACE IN JANUARY THAT REQUIRES EACH PARTNER TO INVEST 250 MILLION THE PROJECT WHICH NEEDS THE TAIWAN GOVERNMENT'S APPROVAL HAS BEEN STALLED FOR MONTHS BECAUSE ITS PARTNERS AND OTHER FINANCIERS HAD QUESTIONED ITS FEASIBILITY 9307140094 930714 WHO'S NEWS SATELLITE TECHNOLOGY MANAGEMENT INC SATELLITE TECHNOLOGY MANAGEMENT INC COSTA MESA CALIF ROBERT C FITTING WAS ELECTED A DIRECTOR SUCCEEDING LUIGI DE FABRITIIS 51 YEARS OLD WHO RESIGNED MR FITTING 58 IS FOUNDER AND CHIEF EXECUTIVE OFFICER OF EFDATA CORP SATELLITE TECHNOLOGY MAKES SATELLITE COMMUNICATION NETWORKS 9307140093 930714 TALKS PUSH UP SHARES OF MEDCO CONTAINMENT STOCK RISES 48 AS CONCERN CONFIRMS DISCUSSIONS WITH DRUG COMPANIES BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL MONTVALE NJ MEDCO CONTAINMENT SERVICES INC SAID IT HAS BEEN IN STRATEGIC DISCUSSIONS WITH SEVERAL DRUG COMPANIES COVERING TOPICS THAT INCLUDE A POSSIBLE MERGER OR TAKEOVER MEDCO'S STOCK PRICE ROSE 48 ON THE NEWS IN UNUSUALLY HEAVY NATIONAL OVERTHECOUNTER TRADING YESTERDAY MEDCO WAS QUOTED LATE IN THE DAY AT 30125 A SHARE UP 1375 THAT PUTS A STOCK MARKET VALUE OF 48 BILLION ON MEDCO WHICH HAS 160 MILLION SHARES OUTSTANDING ON A FULLY DILUTED BASIS MEDCO WHICH OPERATES A RAPIDLY GROWING MAILORDER PHARMACY BUSINESS DIDN'T IDENTIFY THE DRUG MANUFACTURERS WITH WHICH IT HAS BEEN TALKING WALL STREET ANALYSTS HOWEVER SAID THAT LIKELY CANDIDATES INCLUDE MERCK & CO PFIZER INC SMITHKLINE BEECHAM PLC AND BRISTOLMYERS SQUIBB CO YESTERDAY THE WALL STREET JOURNAL REPORTED THAT MERCK HAS HAD TALKS ABOUT ACQUIRING MEDCO PFIZER INDICATED THAT AT LEAST SOME OF ANALYSTS' SPECULATION MAY BE WELLPLACED WE'RE ALWAYS CONSIDERING STRATEGIC INVESTMENTS IN THIS AREA AND OTHER AREAS A PFIZER SPOKESMAN SAID THOUGH HE WOULDN'T COMMENT SPECIFICALLY ABOUT MEDCO BRISTOLMYERS SMITHKLINE AND MERCK DECLINED TO COMMENT DESPITE THE STIRRING OF TAKEOVER TALK ANALYSTS SAID THEY EXPECT MEDCO'S NEGOTIATIONS WILL PRODUCE CLOSER BUSINESS TIES OR JOINT VENTURES WITH A FEW DRUG COMPANIES RATHER THAN AN OUTRIGHT TAKEOVER MEDCO ITSELF IN DISCLOSING TALKS CAUTIONED THAT TALKS WERE PRELIMINARY AND THAT THEY COVERED STRATEGIC RELATIONSHIPS AND PARTNERSHIPS AS WELL AS BUSINESS COMBINATIONS MY BEST GUESS IS THAT WE'LL SEE A STRATEGIC ALLIANCE BETWEEN MEDCO AND SEVERAL DRUG COMPANIES SAID LEONARD YAFFE AN ANALYST WITH MONTGOMERY SECURITIES THAT COULD MAKE MEDCO INTO A SOLESOURCE PROVIDER THAT WOULD SUPPLY 90 OF A HEALTH PLAN'S DRUG NEEDS THAT WOULD BE A VERY POWERFUL ENTITY IN THE NEW MANAGEDCARE ENVIRONMENT THAT WE'RE ENTERING MEDCO ALREADY HAS BECOME ONE OF THE LARGEST CUSTOMERS OF ALL MAJOR DRUG COMPANIES MEDCO COVERS ABOUT 33 MILLION AMERICANS THROUGH ITS NATIONAL RX AND PAID PRESCRIPTIONS DRUG PROGRAMS AMONG ITS USERS ARE EMPLOYEES AND RETIREES OF GENERAL MOTORS CORP ITT CORP AND THE STATE OF CALIFORNIA AS WELL AS MEMBERS OF ABOUT 20 DIFFERENT BLUE CROSS ORGANIZATIONS IN THE FIRST NINE MONTHS ENDED MARCH 31 MEDCO EARNED 997 MILLION OR 62 CENTS A SHARE ON REVENUE OF 187 BILLION BOTH SALES AND EARNINGS GREW MORE THAN 25 FROM A YEAR EARLIER BECAUSE OF ITS BUYING CLOUT MEDCO FOR YEARS HAS DEMANDED SIZABLE DISCOUNTS ON ITS DRUG PURCHASES IT PASSES ON SOME OF THOSE SAVINGS TO HEALTHPLAN SPONSORS AND TO THEIR PARTICIPANTS HELPING IT WIN ACCOUNTS BUT MEDCO'S TOUGH PRICE NEGOTIATING HAS MADE IT A CONTROVERSIAL CUSTOMER FROM DRUG EXECUTIVES' PERSPECTIVES LATELY HOWEVER MEDCO HAS BEGUN WOOING DRUG COMPANIES IT GATHERS DETAILED STUDIES OF INDIVIDUAL DOCTORS' PRESCRIBING HABITS WHICH THEN ARE SOLD TO DRUG COMPANIES SO THEY CAN TELL WHERE TO SEND THEIR SALESMEN THAT SORT OF DATA CAN BE EXTREMELY VALUABLE TO A COMPANY LIKE MERCK SAYS TED DUNCAN AN ANALYST AT EATON VANCE & CO WHICH IS A MAJOR MEDCO STOCKHOLDER MEDCO ALSO OFFERS TO PHONE DOCTORS AND ASK THEM TO REWRITE PRESCRIPTIONS IN FAVOR OF A SPECIFIC MANUFACTURER'S DRUG IF DOING SO IS MEDICALLY APPROPRIATE MEDCO ONLY MAKES THESE PHONE CALLS ON BEHALF OF DRUG COMPANIES THAT SELL AT CHEAPER PRICES SOME COMPANIES HAVE BALKED AT THIS BUT OTHERS SUCH AS SMITHKLINE HAVE ENTERED INTO SUCH ARRANGEMENTS IN THE ANTIULCER DRUG MARKET MEDCO'S CHAIRMAN MARTIN WYGOD SAYS 40 TO 80 OF DOCTORS CONTACTED IN THIS PROGRAM ARE WILLING TO SWITCH PRESCRIPTIONS MEDCO HAS AGGRESSIVELY EXPANDED THIS PROGRAM IN THE PAST YEAR AND ITS ABILITY TO MOVE MARKET SHARE HAS BOTH ALARMED AND INTRIGUED DRUG COMPANY EXECUTIVES MEDCO CLEARLY HAS BEEN A DRIVING FORCE IN IMPLEMENTING CHANGES IN THE PHARMACEUTICAL INDUSTRY SAYS BARBARA RYAN AN ANALYST AT ALEX BROWN & SONS MR WYGOD HAS HINTED RECENTLY OF EVEN BIGGER CHANGES HE WOULD LIKE IN INTERVIEWS AND INVESTOR CONFERENCES HE HAS SUGGESTED THAT DRUG COMPANIES COULD SHED THOUSANDS OF COSTLY SALES REPRESENTATIVES BY ALLYING THEMSELVES WITH MANAGEDCARE SPECIALISTS LIKE MEDCO AND COUNTING ON THOSE NEW BUSINESS TIES TO DO THEIR MARKETING IN FRESH WAYS SOME COMPETITORS HOWEVER QUESTION WHETHER MEDCO'S PUSH FOR CLOSE TIES TO A FEW DRUG COMPANIES COULD HURT ITS IMAGE OF IMPARTIALITY TO LOCK UP RELATIONSHIPS AT THIS STAGE WOULD BE PREMATURE SAYS ELIZABETH DICHTER A SENIOR VICE PRESIDENT AT PCS HEALTH SYSTEMS A PHARMACYSERVICES UNIT OF MCKESSON CORP WE'RE CONSTANTLY EVALUATING PHARMACEUTICALS SUPPLIERS ASKING ARE THEIR PRODUCTS OF HIGH VALUE TO CREATE THIS KIND OF INTEGRATED COMPANY WOULD BRING UP A POTENTIAL FOR PARTISANSHIP ALEX BROWN'S MS RYAN A LONGTIME FAN OF MEDCO LOWERED HER RATING ON THE COMPANY'S STOCK TO HOLD FROM BUY SHE SAID SHE WAS CONCERNED THAT DRUG COMPANIES MAY BE FINDING WAYS ON THEIR OWN TO REAP SOME OF THE EFFICIENCIES THAT MEDCO TRADITIONALLY HAS CAPTURED FOR ITSELF MS RYAN ALSO NOTED THAT MEDCO'S STOCK CURRENTLY TRADES AT 30 TIMES ESTIMATED PERSHARE EARNINGS FOR THIS FISCAL YEAR COMPARED WITH MULTIPLES OF JUST 12 TO 15 FOR MOST DRUG COMPANIES THAT BIG PREMIUM COULD MAKE IT DIFFICULT FOR A DRUG COMPANY TO BUY MEDCO WITHOUT DILUTING ITS OWN EARNINGS SIGNIFICANTLY SHE AND OTHER ANALYSTS OBSERVED ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE 9307140092 930714 CPC TO REDEEM NOTES ENGLEWOOD CLIFFS NJ CPC INTERNATIONAL INC SAID IT WILL REDEEM ON AUG 13 ITS 2875 MILLION FACE AMOUNT OF LIQUIDYIELD OPTION NOTES DUE 2006 THE NOTES WILL BE REDEEMED AT 46829 PER 1000 OF PRINCIPAL HOLDERS OF THE NOTES MAY ALSO CONVERT THEM AT THE RATE OF 8224 COMMON SHARES PER 1000 OF NOTES THE FOODS CONCERN SAID THE REDEMPTION WOULD RESULT IN AN IMMATERIAL AFTERTAX CHARGE AGAINST THIRDQUARTER EARNINGS CPC SAID REDEEMING THE NOTES WILL ALLOW IT TO TAKE ADVANTAGE OF LOWER INTEREST RATES AND REDUCE ITS LONGTERM FINANCING COSTS 9307140091 930714 CORPORATE FOCUS SOFTWARE FIRM'S STOCK REELS AS MAINFRAME FEARS GROW LEGENT SHARES' PLUNGE OF 363 ALSO TIED TO DISAPPOINTING PROFIT ESTIMATE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL WALL STREET PARTLY DRIVEN BY FEARS THAT A SOFTENING MAINFRAME MARKET MIGHT HURT SUPPLIERS OF SUCH SOFTWARE POUNDED THE STOCK OF A KEY PLAYER IN THE INDUSTRY LEGENT CORP THE COMPANY HAS LOST 42 OF ITS MARKET VALUE OR MORE THAN 600 MILLION SINCE FRIDAY'S CLOSE OF 31 A SHARE THE STOCK PLUNGED 10125 YESTERDAY OR 363 TO 1775 ON VOLUME OF MORE THAN NINE MILLION SHARES IN NATIONAL OVERTHECOUNTER TRADING THE PLUNGE BEGAN AFTER THE COMPANY ON MONDAY SAID ITS REPORT ON FISCAL THIRDQUARTER EARNINGS WOULD LIKELY BE HALF OF EXPECTED RESULTS PEOPLE ARE ANGRY THAT THIS IS THE SECOND SUCCESSIVE QUARTER THEY'VE MESSED UP SAYS JAMES POYNER AN OPPENHEIMER & CO ANALYST WHAT WE SAW IS A LOT OF EMOTIONAL SELLING IT WILL TAKE LEGENT A COUPLE OF QUARTERS TO REGAIN ITS CREDIBILITY BUT OVERREACTION OR NOT THE FALL DOES CALL ATTENTION TO LONGERTERM PROBLEMS FACED BY THE COMPANY AND OTHER SOFTWARE COMPANIES SPECIALIZING IN SERVING THE MAINFRAME COMPUTER MARKET AS THE MARKET FOR THE BIG MACHINES SOFTENS SOFTWARE COMPANIES MUST DECIDE WHETHER TO REFOCUS ON SERVING THE GROWING MARKET FOR SMALLER COMPUTERS OR TO STICK WITH THEIR EXISTING MAINFRAME PRODUCT LINES OBSERVES MICHAEL MURPHY EDITOR OF THE CALIFORNIA TECHNOLOGY STOCK LETTER WE'RE AT THE ENDGAME AND IT'S TIME FOR COMPANIES TO START RETHINKING THEIR SOFTWARE LEGENT AIMS ITS BUSINESS AT LARGE CORPORATE CLIENTS WITH TYPICALLY 350 MILLION OR MORE IN ANNUAL REVENUE WHICH NEED SOFTWARE TO RUN CENTRALIZED DATA PROCESSING OPERATIONS SUCH AS PAYROLL PROCESSING INVENTORY CONTROL AND EXTENSIVE CLIENT RECORDS THE AVERAGE SOFTWARE ORDER RUNS AT ABOUT 100000 MORE THAN DOUBLE THE YEAREARLIER AVERAGE AS LEGENT HAS FOUND PROJECTS GETTING LARGER AND MORE COMPLEX CLOSING A DEAL WORTH OVER 200000 WITH A CUSTOMER CAN TAKE SIX TO NINE MONTHS ABOUT HALF THE COMPANY'S REVENUE 4267 MILLION IN FISCAL 1992 COMES FROM FOREIGN CUSTOMERS AT FIRST BLUSH LEGENT'S CURRENT PROBLEMS APPEAR TO BE MOSTLY INTERNAL THE COMPANY PARTLY BLAMES ITS LOWERTHANEXPECTED EARNINGS ESTIMATE ON A FAILED ATTEMPT TO BOOST THE EFFICIENCY OF ITS NORTH AMERICAN SALES STAFF LAST OCTOBER THAT FOLLOWED LEGENT'S 400 MILLION ACQUISITION OF GOAL SYSTEMS INTERNATIONAL INC FACED WITH A BROADER PRODUCT LINE LEGENT PLANNED ON HAVING EACH SALESPERSON HANDLE A WIDE ARRAY OF SOFTWARE PRODUCTS BUT THE BURGEONING COMPLEXITY OF THE PRODUCT LINE MADE THAT SALES APPROACH INEFFICIENT SAYS JOHN BURTON LEGENT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BURTON BLAMES SOME OF THE COMPANY'S SLUGGISH REVENUE ON THAT APPROACH ANALYSTS SAY THE COMPANY'S SALESPEOPLE SHOULD SPECIALIZE IN PRODUCTS THE CURRENT AWKWARD SALES STRUCTURE THEY DECLARE PROMPTED SOME OF THE SALES STAFF TO JOIN COMPETITORS MR BURTON SAYS THE COMPANY'S SALESSTAFF TURNOVER IS CURRENTLY ABOUT 20 ANNUALLY WHICH ISN'T LARGE FOR A TECHNICAL COMPANY BUT WE'D LIKE IT TO BE IN THE 10 TO 15 RANGE THE VIENNA VA COMPANY ON MONDAY SAID IT EXPECTS TO EARN 26 CENTS A SHARE FOR THE THIRD QUARTER ENDED JUNE 30 COMPARED WITH 38 CENTS A SHARE A YEAR EARLIER CONSENSUS ANALYSTS' ESTIMATES PROVIDED BY FIRST CALL A FINANCIALINFORMATION SERVICE PROJECTED LEGENT WOULD EARN 53 CENTS A SHARE THE COMPANY BLAMED THE DECLINE IN OPERATING RESULTS MAINLY ON A SIGNIFICANT SHORTFALL IN NEW LICENSE REVENUE IN NORTH AMERICA THE COMPANY EXPECTS TOTAL REVENUE IN THE THIRD QUARTER TO TOTAL 99 MILLION INCLUDING ABOUT 48 MILLION IN NEW LICENSE SALES AND 51 MILLION IN RECURRING REVENUE NEW LICENSE SALES A YEAR EARLIER WERE 564 MILLION BUT MR BURTON BELIEVES THAT LEGENT'S ESTIMATED LOWER REVENUES REFLECT A MORE ELUSIVE INDUSTRYWIDE TREND THE MARKET FOR COMPUTER TECHNOLOGY IS MORE COMPLEX AND PEOPLE ARE PERPLEXED ABOUT HOW YOU MOVE FROM A MAINFRAME SETUP TO A CLIENTSERVER SYSTEM HE SAYS IN THE LAST 12 MONTHS ABOUT A QUARTER OF LEGENT'S SALES WERE PRODUCTS THAT RUN ON MORE THAN JUST MAINFRAMES INCLUDING CLIENT SERVERS HE NOTES CALIFORNIA TECHNOLOGY STOCK LETTER'S MR MURPHY SAYS THAT A CLIENT SERVER ESSENTIALLY A SERIES OF SMALL COMPUTERS PROCESSES DATA MORE CHEAPLY AND QUICKLY THAN A MAINFRAME DESPITE THE APPARENT CUSTOMER CONFUSION ABOUT WHAT COMPUTERS TO BUY SOME ANALYSTS ARE CONVINCED THAT THE DECLINING MARKET FOR MAINFRAMES NEEDN'T HURT THE LONGRUN FORTUNES OF SOFTWARE CONCERNS LIKE LEGENT TERENCE QUINN AN ANALYST AT FURMAN SELZ INC SAYS THAT ALTHOUGH THE NUMBER OF MAINFRAMES WORLDWIDE HAS FALLEN ABOUT 10 IN THE LAST FEW YEARS THE AMOUNT OF PROCESSING POWER HAS DOUBLED IF YOU'RE STORING MORE DATA ON THESE MAINFRAMES THERE'S GOING TO BE A LOT OF SYSTEM SOFTWARE THAT WILL BE NEEDED HE POINTS OUT THAT COMPUTER ASSOCIATES INTERNATIONAL INC A LEADING MAINFRAME SOFTWARE SUPPLIER HAS POSTED SOLID RESULTS IN THE PAST 18 TO 24 MONTHS MR POYNER OF OPPENHEIMER SAYS IT WILL TAKE TWO QUARTERS OF PAIN BEFORE LEGENT CAN SOLVE SOME OF ITS MORE PRESSING INTERNAL PROBLEMS INCLUDING FIGURING OUT A MORE EFFECTIVE STRUCTURE FOR ITS SALES STAFF HE NOTES THAT WEAKNESS IN THE EUROPEAN MARKET HAS MOVED WITH ALARMING SPEED TO NORTH AMERICA AND THE TIME IT TAKES COMPANIES LIKE LEGENT TO MARKET THEIR PRODUCT AND REALIZE REVENUES IS LENGTHENING FOR THE REST OF THE YEAR LEGENT IS TONING DOWN ITS EXPECTATIONS MR BURTON SAID RESULTS FOR FISCAL 1993 ENDING SEPT 30 ARE LIKELY TO BE ESSENTIALLY FLAT COMPARED WITH FISCAL 1992 RESULTS LAST YEAR THE COMPANY HAD EARNINGS FROM OPERATIONS OF 171 A SHARE ON REVENUE 4267 MILLION ON MONDAY LEGENT'S BOARD AUTHORIZED THE COMPANY TO BUY BACK AS MANY AS 35 MILLION SHARES IN THE OPEN MARKET FROM TIME TO TIME MR BURTON OF LEGENT SAID THAT ALTHOUGH THE STOCK'S TUMBLE WAS WHOLESALE OVERREACTION I'M NOT SURPRISED WITH IT SUPPLIER OF SOFTWARE PRODUCTS FOR MAINFRAME COMPUTER SYSTEMS USED FOR DATA PROCESSING NETWORK AND APPLICATION RESOURCES 9307140090 930714 ENTERPRISE CLINTON TO SEEK RULES TO CUT PAPERWORK FOR BANKS TO BOOST LOANS IN POOR AREAS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO ASK BANK REGULATORS TO REWRITE COMMUNITY REINVESTMENT RULES IN AN EFFORT TO LIGHTEN PAPERWORK REQUIREMENTS ON BANKERS WHILE BOOSTING LENDING IN LOWINCOME AREAS THE INITIATIVE WHICH THE PRESIDENT IS SCHEDULED TO ANNOUNCE TOMORROW GIVES REGULATORS UNTIL YEAR'S END TO REFINE RULES DESIGNED TO ENCOURAGE BANKS TO INVEST IN THEIR LOCAL COMMUNITIES BANKERS CALL THE RULES VAGUE CONFUSING AND IRKSOME COMMUNITY AND GOVERNMENT GROUPS HAVE USED THEM TO FORCE BANKS TO INCREASE LENDING IN POOR AREAS SOME REGULATORS HAVE BEEN LOOKING AT WAYS TO REVISE THE RULES AT A WHITE HOUSE CEREMONY TOMORROW MR CLINTON ALSO WILL UNVEIL HIS LEGISLATIVE PROPOSAL TO ESTABLISH A FEDERAL FUND TO SPUR LENDING IN POOR AREAS HE WILL ASK CONGRESS TO ESTABLISH A 382 MILLION FUND TO SUPPORT COMMUNITY DEVELOPMENT BANKS CREDIT UNIONS AND LOAN FUNDS THE BASIC ELEMENTS OF THE PROPOSAL HAVE BEEN PUBLIC FOR MONTHS BECAUSE THE ADMINISTRATION HAS DISCUSSED IT WITH CONGRESS IN AN EFFORT TO WIN QUICK PASSAGE THE NEW FUND WOULD SUPPORT A SMALL BUT GROWING NUMBER OF COMMUNITY FINANCIAL INSTITUTIONS THAT CONCENTRATE ON MAKING LOANS IN LOWINCOME AREAS WHILE THE REVISION OF COMMUNITY REINVESTMENT RULES WOULD AFFECT EVERY BANK AND THRIFT IN THE COUNTRY THE 1977 COMMUNITY REINVESTMENT ACT IMPOSES ON FEDERALLY INSURED BANKS AND THRIFTS A CONTINUING AND AFFIRMATIVE OBLIGATION TO HELP MEET THE CREDIT NEEDS OF THE COMMUNITIES WHERE THEY OPERATE BUT NEITHER THE LAW NOR THE REGULATIONS THAT IMPLEMENT IT TELL BANKS EXACTLY WHAT THEY MUST DO TO SATISFY THIS REQUIREMENT DURING HIS PRESIDENTIAL CAMPAIGN MR CLINTON SAID THAT REGULATORS HAVE ALLOWED BANKERS TO MEET THE REQUIREMENTS BY FILLING THEIR FILE CABINETS WITH ACCOUNTS OF COMMUNITY MEETINGS RATHER THAN BY ACTUALLY MAKING LOANS OR OPENING BRANCHES IN POOR AREAS NEVERTHELESS THE LAW DOES GIVE COMMUNITY GROUPS LEVERAGE IN WINNING LENDING COMMITMENTS FROM BANKS PARTICULARLY WHEN THEY'RE SEEKING REGULATORY APPROVAL FOR MERGERS SOME ACTIVISTS WORRY THAT THE PRESIDENT'S INITIATIVE FOCUSES TOO MUCH ON REDUCING PAPERWORK FOR BANKS AND NOT ENOUGH ON BOOSTING LENDING THE PRESIDENT IN EFFECT WILL ISSUE A PARDON FOR THE BANKING INDUSTRY SUGGESTING THAT ITS FAILURE TO SERVE LOW AND MODERATEINCOME AND MINORITY AREAS ALL THESE YEARS IS REALLY BECAUSE OF PAPERWORK SAID JAKE LEWIS A COMMUNITY LENDING ADVOCATE ACCORDING TO THE DRAFT OF A LETTER TO THE HEADS OF THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THE FEDERAL DEPOSIT INSURANCE CORP THE OFFICE OF THRIFT SUPERVISION AND THE FEDERAL RESERVE BOARD MR CLINTON WILL ASK THE REGULATORS TO MEET WITH BANKERS AND COMMUNITY GROUPS AND WRITE NEW REGULATIONS THAT REPLACE PAPERWORK AND UNCERTAINTY WITH PERFORMANCE AND OBJECTIVITY THE LETTER ASKS THEM TO DEVELOP CLEAR COMMUNITYREINVESTMENT ASSESSMENT STANDARDS THAT FOCUS ON THE PROVISION OF LOANS INVESTMENTS AND BANKING SERVICES IN LOWINCOME NEIGHBORHOODS KENNETH GUENTHER EXECUTIVE VICE PRESIDENT OF THE INDEPENDENT BANKERS ASSOCIATION A GROUP OF COMMUNITY BANKS CALLED THE PLEDGE TO REVAMP THE RULES A SINCERE EFFORT TO IMPROVE THINGS HE SAID IT COULD PRODUCE A WINWIN SITUATION THAT BOOSTS COMMUNITY LENDING WHILE EASING THE REGULATORY BURDEN ON BANKS 9307140089 930714 BUSINESS BRIEF P&G SUES FORMER EXECUTIVE DEFEO SEEKING TO BLOCK HIS MOVE TO CLOROX CINCINNATI PROCTER & GAMBLE CO HAS SUED A FORMER TOP EXECUTIVE TO KEEP HIM FROM WORKING FOR RIVAL CLOROX CO CONTENDING THAT HE MIGHT LEAK COMPANY SECRETS THE SUIT AGAINST NEIL P DEFEO WHO WAS P&G'S VICE PRESIDENT IN CHARGE OF WORLDWIDE STRATEGIC PLANNING FOR LAUNDRY AND CLEANING PRODUCTS WAS FILED A DAY AFTER MR DEFEO QUIT TO BECOME A GROUP VICE PRESIDENT OF US OPERATIONS FOR CLOROX MEANWHILE CLOROX AND THE 47YEAROLD MR DEFEO HAVE SUED P&G CHALLENGING A PROVISION IN P&G'S STOCKOPTION AGREEMENT THAT P&G SAYS BARS HIM FROM WORKING FOR A COMPETITOR FOR THREE YEARS THE SUIT WAS FILED IN THE SUPERIOR COURT OF ALAMEDA COUNTY CALIF CLOROX SAID MOREOVER CLOROX SAID MR DEFEO AMENDED THAT SUIT YESTERDAY CHARGING P&G WITH DEFAMATION IN A STATEMENT ISSUED BY CLOROX MR DEFEO SAID P&G'S ALLEGATIONS HAVE DAMAGED HIS REPUTATION WITH FORMER COLLEAGUES FRIENDS AND THE MANY COMMUNITY LEADERS WITH WHOM I WORKED ON CIVIC ACTIVITIES SIMILAR TO GM SUIT P&G'S SUIT WHICH SAYS THE COMPANY WOULD SUFFER IRREPARABLE HARM IF MR DEFEO SHARED CERTAIN INFORMATION ABOUT LAUNDRY DETERGENTS AND CLEANING PRODUCTS WITH CLOROX RESEMBLES A SUIT FILED BY GENERAL MOTORS CORP AGAINST J IGNACIO LOPEZ DE ARRIORTUA HEAD OF GM'S EUROPEAN PURCHASING OPERATIONS WHO BOLTED FOR VOLKSWAGEN AG IN MARCH IN THE SUIT P&G CITES EVIDENCE THAT MR DEFEO AGGRESSIVELY GATHERED INFORMATION ABOUT THE COMPANY'S STRATEGIES AND TECHNICAL PLANS BEFORE RESIGNING IT ALLEGES FOR EXAMPLE THAT JUST BEFORE JOINING CLOROX MR DEFEO ATTENDED AND CALLED SENIORLEVEL MEETINGS AT P&G FOR THE PURPOSE OF OBTAINING A FULL AND CURRENT BRIEFING ON P&G'S PLANS IN THE LAUNDRY DETERGENT BLEACH AND HOUSEHOLD CLEANER BUSINESSES P&G CLAIMS THAT MR DEFEO'S DEPARTURE TO CLOROX IS A CLEAR VIOLATION OF HIS CONTRACT WITH P&G IT CITES A STOCKOPTION PLAN UNDER WHICH EXECUTIVES WHO ACCEPT OPTIONS CANNOT WORK FOR COMPETITORS FOR THREE YEARS IT ASSERTS THAT MR DEFEO TOOK OPTIONS ON 51400 SHARES OF P&G COMMON STOCK FROM 1991 TO 1993 AND IS THEREFORE BARRED FROM JOINING A COMPETITOR UNTIL FEB 26 1996 MR DEFEO WHO HAD JOINED P&G IN 1968 SAID IN THE CLOROX STATEMENT THAT HE DENIES AND DEEPLY RESENTS P&G'S CHARGES THAT HE GATHERED INFORMATION ABOUT P&G BRANDS BEFORE QUITTING IN THE STATEMENT MR DEFEO AND CLOROX CHARGE THAT THE P&G STOCKOPTION AGREEMENT IS AGAINST PUBLIC POLICY AND IS UNENFORCEABLE IN CALIFORNIA SEPARATELY P&G NAMED ERIK G NELSON SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE IMMEDIATELY MR NELSON 53 HAS BEEN VICE PRESIDENT FOR FINANCIAL OPERATIONS HE FILLS A POST THAT HAS BEEN VACANT SINCE 1991