THE COMMENT IN YOUR JUNE 24 EDITORIAL INCUMBENTS VS THE PEOPLE IS CORRECT
AS FAR AS IT GOES A REJECTION OF TERM LIMITS WOULD MARK THE SECOND TIME
NEW JERSEY'S GOP LEGISLATURE HAS VOTED DOWN POLITICAL REFORM IT VOWED TO
ENACT ACTUALLY IT IS THE THIRD TIME THE GOP LEGISLATURE ALSO VOWED THAT
IF ELECTED IT WOULD OVERTURN THE SEMIAUTOMATIC FIREARM BAN ENACTED BY GOV
FLORIO AND HIS DEMOCRATIC COMRADES IN THE LEGISLATURE THE BAN OUTLAWED AN
ENORMOUS NUMBER OF SEMIAUTOMATIC RIFLES IN THE STATE THE BAN HAS NOT
AFFECTED CRIME ONE IOTA

AS YOU ARE AWARE THE HOUSE VOTED TO OVERRIDE GOV FLORIO'S VETO BUT THE
REPUBLICAN SENATORS COWERED EN MASSE AT THE LAST MINUTE THUS VIOLATING AN
ELECTION PLEDGE PERHAPS IT IS TIME TO FOLLOW THE LEAD OF THE ITALIAN AND
JAPANESE PEOPLE AND REVOLT AT THE POLLS 9307140087 930714 LETTERS TO THE
EDITOR IN MATTERS OF SAFETY WORKERS NEED A SAY

REP PETE HOEKSTRA R MICH IS CERTAINLY CORRECT TO OBSERVE THAT
BUREAUCRATS IN WASHINGTON CANNOT MANDATE LABORMANAGEMENT COOPERATION
MANAGER'S JOURNAL EDITORIAL PAGE JUNE 7 UNFORTUNATELY FOR HIS ARGUMENT
THAT IS BESIDE THE POINT THE FORDKENNEDY BILL REFORMING THE OCCUPATIONAL
SAFETY AND HEALTH ACT WOULD MANDATE WORKER PARTICIPATION THROUGH THE
ESTABLISHMENT OF SAFETY AND HEALTH COMMITTEES WHETHER MANAGEMENT AND
WORKERS INTERACT IN A COOPERATIVE FASHION IS UP TO THEM MANAGEMENT WOULD
REMAIN FREE TO FASHION WORKER PARTICIPATION PROGRAMS IN OTHER AREAS IN
WHATEVER WAY THEY SEE FIT PROVIDED THEY DO NOT INTERFERE WITH THE RIGHT OF
WORKERS TO CHOOSE WHETHER OR NOT THEY WILL BE REPRESENTED BY A LABOR
ORGANIZATION IN THEIR RELATIONS WITH THEIR EMPLOYER

REP HOEKSTRA OBJECTS TO WASHINGTON IMPOSING REGULATORY RIGHTS AND DUTIES AS
LEADING TO ADVERSARIALNESS THE PROBLEM FOR WORKERS HOWEVER IS THAT NOT
EVERY COMPANY IS AS PROGRESSIVE AS REP HOEKSTRA'S PREVIOUS EMPLOYER HERMAN
MILLER A PRIME EXAMPLE IS THE NORTH CAROLINA CHICKEN PROCESSING COMPANY
WHERE 25 WORKERS PERISHED IN A 1991 FIRE THE PUBLIC POLICY QUESTION IS
WHETHER WORKERS SHOULD HAVE A STATUTORY RIGHT TO PARTICIPATE IN SAFETY AND
HEALTH DECISIONS AT THEIR WORKPLACE OR ALTERNATIVELY WILL PARTICIPATION BE
AT THE SOLE DISCRETION OF THEIR EMPLOYER SOME ADVERSARIALISM MAY BE A SMALL
PRICE FOR SOCIETY TO PAY FOR PROVIDING WORKERS WITH SOME SAY OVER SAFETY AND
HEALTH MATTERS 9307140086 930714 MAGMA COPPER AZCO SET DEAL

TUSCON ARIZ MAGMA COPPER CO SAID IT SIGNED A BINDING LETTER OF
AGREEMENT TO ACQUIRE A 15 INTEREST IN AZCO MINING INC'S SANCHEZ MINE
PROJECT NEAR SAFFORD ARIZ FOR 10 MILLION

UNDER TERMS AZCO LAKEWOOD COLO SAID IT WOULD OWN 85 OF THE NEWLY
FORMED SANCHEZ MINE PROJECT LIMITED PARTNERSHIP AND OPERATE AS GENERAL
PARTNER

MAGMA A COPPER PRODUCER WILL PAY 45 MILLION TO THE PROJECT WHEN A FINAL
AGREEMENT IS SIGNED AND AN ADDITIONAL 55 MILLION WHEN CONSTRUCTION
BEGINS A SPOKESMAN SAID MAGMA WILL USE AVAILABLE CASH TO FUND ITS
ACQUISITION

THE DEAL IS SUBJECT TO THE COMPANIES' REACHING A FINAL AGREEMENT BY SEPT 1
9307140085 930714 WHO'S NEWS NATIONSBANK CORP

NATIONSBANK CORP CHARLOTTE NC ROBERT E STOCK WAS NAMED DIRECTOR OF
MARKETING FOR CARD SERVICES AT THIS BANK HOLDING COMPANY MR STOCK TAKES ON
A JOB THAT HAD BEEN PART OF ANOTHER NATIONSBANK EXECUTIVE'S DUTIES THE
COMPANY SAID MR STOCK HAD BEEN A SENIOR VICE PRESIDENT AND DIRECTOR OF
MARKETING FOR BARNETT CARD SERVICES CORP IN JACKSONVILLE FLA 9307140084
930714 WHO'S NEWS CAPUCINO'S INC

CAPUCINO'S INC LOUISVILLE KY JAMES I MARUNA 46 YEARS OLD RESIGNED
AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THIS OWNER AND OPERATOR OF
ITALIAN RESTAURANTS DANNY L MCDANIEL ALSO 46 WAS NAMED ACTING CHIEF
EXECUTIVE HE RETAINS THE POSITION OF VICE PRESIDENT OF FINANCE AND CHIEF
FINANCIAL OFFICER MR MARUNA WAS TRAVELING AND UNAVAILABLE FOR COMMENT BUT
MR MCDANIEL SAID HE RESIGNED TO PURSUE OTHER INTERESTS 9307140083 930714
WHO'S NEWS RUSSELL CORP

RUSSELL CORP ALEXANDER CITY ALA JT TAUNTON 50 YEARS OLD WAS NAMED
TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING AT
THIS ATHLETIC APPAREL MAKER MR TAUNTON PREVIOUSLY WAS PRESIDENT OF
RUSSELL'S FABRICS DIVISION ALSO JAMES D NABORS 50 RUSSELL'S CHIEF
FINANCIAL OFFICER WAS GIVEN AN ADDITIONAL TITLE OF EXECUTIVE VICE
PRESIDENT 9307140082 930714 METROMEDIA MIRAGE RESORTS PACT

EAST RUTHERFORD NJ METROMEDIA COMMUNICATIONS CORP SAID IT SIGNED A
TWOYEAR 14 MILLION CONTRACT TO PROVIDE LONGDISTANCE TELECOMMUNICATIONS
SERVICE TO MIRAGE RESORTS INC HOTELS AND CASINOS IN LAS VEGAS

CLOSELY HELD METROMEDIA WHICH RECENTLY SIGNED A MERGER AGREEMENT WITH LDDS
COMMUNICATIONS CORP AND RESURGENS COMMUNICATIONS GROUP INC TO FORM A
PUBLIC COMPANY LDDSMETRO COMMUNICATIONS INC SAID THE AGREEMENT WOULD
INCLUDE LONGDISTANCE SERVICES FOR THE MIRAGE TWO GOLDEN NUGGET FACILITIES
AND THE SOONTOBEOPENED TREASURE ISLAND 9307140081 930714 BUSINESS
BRIEF POWELL INDUSTRIES INC US TURBINE UNIT TO BE SOLD IN PUBLIC
OFFERING THIS FALL

POWELL INDUSTRIES INC SAID IT PLANS TO SELL ITS US TURBINE CORP UNIT IN
A PUBLIC OFFERING THIS FALL

POWELL WILL RETAIN A MINORITY INTEREST IN US TURBINE LOCATED IN
MAINEVILLE OHIO US TURBINE DESIGNS ASSEMBLES AND INSTALLS GAS TURBINE
GENERATOR SETS FOR THE COGENERATION AND INDEPENDENT POWER PRODUCER MARKET
POWELL AN ELECTRICAL EQUIPMENT MANUFACTURER BASED IN HOUSTON SAID PROCEEDS
WILL BE USED FOR AN ACQUISITION MORE IN LINE WITH THE COMPANY'S CORE
BUSINESS

EUGENE L BUTLER A POWELL DIRECTOR WILL BECOME CHAIRMAN OF THE NEW
COMPANY MR BUTLER IS THE FORMER PRESIDENT AND CHIEF EXECUTIVE OF
WEATHERFORD INTERNATIONAL INC AN ENERGY SERVICES AND MANUFACTURING
COMPANY 9307140080 930714 INTERNATIONAL UNITED ARAB EMIRATES INDICTS
13 AIDES OF BCCI ON FRAUD AND FORGERY CHARGES

NEW YORK AP THE UNITED ARAB EMIRATES INDICTED 13 BCCI OFFICERS ON
CRIMINAL FORGERY AND FRAUD CHARGES THE GOVERNMENT'S FIRST CRIMINAL ACTION
SINCE THE BANK COLLAPSED TWO YEARS AGO

THE INDICTMENTS ARE A SIGNIFICANT DEVELOPMENT BECAUSE THE GOVERNMENT AND
RULING FAMILY OF ABU DHABI THE LARGEST EMIRATE IN THE UAE HAVE BEEN
ACCUSED OF DRAGGING THEIR FEET IN THE INVESTIGATION OF BANK OF CREDIT &
COMMERCE INTERNATIONAL CRITICS HAVE ACCUSED ABU DHABI OF KNOWING ABOUT THE
BANK'S FRAUD FROM THE BEGINNING CHARGES THE EMIRATE HAS DENIED

THE ATTORNEY GENERAL OF THE UAE CHARGED BCCI FOUNDER AGHA HASAN ABEDI AS
WELL AS SWALEH NAQVI BCCI'S FORMER CHIEF EXECUTIVE OFFICER AND ZIAUDDIN
AKBAR FORMER HEAD OF BCCI'S TREASURY WHO IS IN CUSTODY IN BRITAIN THE
OTHERS EXECUTIVES WITH PAKISTANI OR BRITISH CITIZENSHIP ARE LESSER PLAYERS
IN THE SCANDAL

MR ABEDI WAS INDICTED BY NEW YORK PROSECUTORS IN AUGUST 1991 ON CHARGES OF
FRAUD FALSIFYING DOCUMENTS AND STEALING MORE THAN 30 MILLION BUT THIS
PAST FEBRUARY THE GOVERNMENT OF PAKISTAN MR ABEDI'S HOME COUNTRY REFUSED
A US REQUEST TO EXTRADITE HIM FOR TRIAL MR ABEDI WHO RELINQUISHED
CONTROL OF BCCI IN EARLY 1988 BECAUSE OF ILL HEALTH HAS STRONGLY DENIED ANY
WRONGDOING OTHER NATIONS HAVE INDICTED HIM AS WELL

ABU DHABI WAS A TOP SHAREHOLDER IN THE BANK AND CONTENDS IT IS A MAJOR
VICTIM OF BCCI CLAIMING LOSSES OF NEARLY 6 BILLION IN THE BANKING SCANDAL
PERHAPS HISTORY'S MOST ELABORATE BANK FRAUD AUDITORS HAVE ESTIMATED
WORLDWIDE LOSSES OF 10 BILLION FROM THE SCANDAL

BCCI FORFEITED A RECORD 550 MILLION IN 1991 TO US AUTHORITIES TO SETTLE
CHARGES IT BROKE BANKING LAWS WHEN IT SECRETLY GAINED CONTROL OF FIRST
AMERICAN BANKSHARES INC IN WASHINGTON DC

ABU DHABI SAID THE ACTIONS WERE A POSITIVE STEP IN THE EXTENSIVE
INVESTIGATION INTO THIS EXTREMELY COMPLEX CASE  AS THE BIGGEST VICTIM OF
THE BCCI FRAUD AND THE COMPLAINANTS IN THE CRIMINAL PROCEEDING WE WILL
CONTINUE OUR COOPERATIVE EFFORTS WITH THE ATTORNEY GENERAL'S OFFICE AS HE
PURSUES THOSE RESPONSIBLE

ABU DHABI HAS HELD 13 FORMER BCCI OFFICERS IN CUSTODY SINCE BCCI COLLAPSED
ON JULY 5 1991 WESTERN INVESTIGATORS HAVE COMPLAINED THEY WEREN'T PROVIDED
ACCESS TO THESE BANK OFFICERS SOME OF WHOM FACE CHARGES IN THE US AND
ELSEWHERE IN CONNECTION WITH THE BCCI SCANDAL

THE CHARGES ARE AGAINST 10 OF THE 13 NOW IN CUSTODY AND THE OTHER THREE ARE
OUTSIDE THE UAE JURISDICTION THE ATTORNEY GENERAL SAID THE INVESTIGATION
IS CONTINUING NONE OF THOSE INDICTED IS A US CITIZEN

A HEARING IS SCHEDULED OCT 9 IN ABU DHABI

THE GOVERNMENT HAS BEEN INVOLVED IN A GLOBAL SETTLEMENT WITH BCCI
DEPOSITORS ABU DHABI AGREED TO PROVIDE 17 BILLION TOWARD THE PAYBACK PLAN
FOR 250000 BCCI DEPOSITORS IN 40 COUNTRIES ABU DHABI AND OTHERS SIGNING
THE AGREEMENT AREN'T IMMUNE FROM CRIMINAL CHARGES IF THE AGREEMENT IS
APPROVED 9307140079 930714 WHO'S NEWS MATTEL INC

MATTEL INC LOS ANGELES MICHAEL L DURIK WAS NAMED SENIOR VICE
PRESIDENT HUMAN RESOURCES AND ADMINISTRATION OF THIS TOY MAKER SUCCEEDING
ROBERT WELCH WHO RESIGNED LAST YEAR MR DURIK 44 YEARS OLD PREVIOUSLY
WAS EXECUTIVE VICE PRESIDENT ADMINISTRATION FOR THE LIMITED STORES DIVISION
OF LIMITED INC 9307140078 930714 LEISURE & ARTS BOOKSHELF THE
SEARCH FOR SMART' MACHINES  BY JIM HOLT

IT IS HARD TO KEEP AN OPEN MIND ABOUT A FADDISH THING LIKE FUZZY LOGIC ANY
BREATHTAKINGLY SIMPLE IDEA THAT PROMISES TO TRANFORM OUR LIVES BY MAKING
COMPUTERS BEHAVE LESS LIKE RIGID CALCULATING MACHINES AND MORE LIKE
INTUITIVE HUMANS IS BOUND TO BE NINETENTHS HYPERBOLE RIGHT

YOU WILL BE INCLINED TO THINK SO LOOKING AT BART KOSKO'S FUZZY THINKING
THE NEW SCIENCE OF FUZZY LOGIC HYPERION 334 PAGES 2495 IT OFFERS AN
OFFPUTTING COVER PHOTO OF THE AUTHOR SEATED IN THE LOTUS POSITION AND A GOOD
DEAL OF BUDDHIST RHETORIC DUMB BROADSIDES AT WESTERN PHILOSOPHY AND
VAINGLORIOUS SPECULATIONS ABOUT GOD LIFE AND DEATH BUT BURIED WITHIN HIS
MANIFESTO IS ALSO A PRETTY GOOD EXPLANATION OF THE THEORY UNDERLYING THE NEW
GENERATION OF SMART GADGETS THESE RANGE FROM ONEBUTTON WASHING MACHINES
THAT MAKE ALL THOSE DIFFICULT WASHDAY DECISIONS BY THEMSELVES TO PALMTOP
COMPUTERS THAT RECOGNIZE SLOPPY HANDWRITING TO CONTROL SYSTEMS THAT MAKE
THE SUBWAYS RUN ON TIME IN JAPAN

WHAT THEY ALL HAVE IN COMMON IS A RELIANCE ON RULES OF THUMB FUZZY
RULES THAT EMPLOY THE SAME VAGUE BUT INDISPENSABLE DISTINCTIONS USED IN
EVERYDAY REASONING HOT/COLD NEAR/FAR FAST/SLOW CLEAN/DIRTY AND THE LIKE
ALLORNONE CALCULATIONS ARE OUT EVERYTHING IS A SHADE OF GRAY A MATTER OF
DEGREE

THE BEST THING ABOUT FUZZY THINKING IS THAT IT DISPELS THE AURA OF MAGIC
SURROUNDING THE WORKINGS OF FUZZY LOGIC MR KOSKO'S ACCOUNT OF THE
MATHEMATICAL PRINCIPLES THAT MAKE VAGUE CATEGORIES YIELD PRECISE DECISIONS
IS EASY TO GRASP AND HE DOES AN EXCELLENT JOB OF CONVEYING HOW NEURAL NET
COMPUTERS WHICH LEARN FUZZY RULES FROM EXPERIENCE MIMIC THE HUMAN BRAIN
THE WORST THING ABOUT THE BOOK IS THE UBIQUITOUS AUTHOR WHO CLAIMS HE
ARRIVED AT SOME OF HIS DEEP INSIGHTS WHILE MEDITATING IN A HOT TUB

QUITE NEEDLESSLY MR KOSKO INFLATES WHAT IS REALLY A TECHNOLOGICAL ISSUE
INTO A COSMIC STRUGGLE BETWEEN BUDDHA THE INFINITELY WISE PRECURSOR OF
FUZZY THINKING AND ARISTOTLE THE BAD OLD FATHER OF STRAITJACKET TRUEFALSE
LOGIC BESIDES THE BIRTHPLACE OF FUZZY LOGIC IS THE US NOT THE EAST IT
WAS THOUGHT UP IN THE 1960S BY A BERKELEY ENGINEERING PROFESSOR NAMED LOTFI
ZADEH IT IS TRUE THAT JAPAN AND OTHER ASIAN NATIONS ARE WELL AHEAD OF US IN
FUZZYPRODUCT DEVELOPMENT WHICH FOR MR KOSKO IS A SIGN OF THEIR SUPERIOR
BUDDHIST/TAOIST OUTLOOK BUT ROBOTICS AND VCRS WERE ALSO COMMERCIALLY
COLONIZED BY JAPAN AFTER BEING PIONEERED IN THE US AND I DON'T THINK
THERE IS ANYTHING VERY ZEN ABOUT THEM

THE FIELD OF ARTIFICIAL INTELLIGENCE DEFINED AS THE SCIENCE OF MAKING
MACHINES DO WHAT WOULD REQUIRE INTELLIGENCE IF DONE BY MEN HAS BEEN RIFE
WITH BOASTFULNESS AND FALSE OPTIMISM EVER SINCE IT WAS CONCEIVED FIVE
DECADES AGO AS MR CREVIER MAKES PLAIN IN LARGE PART THIS STEMS FROM THE
ARTIFICIAL INTELLIGENTSIA'S SIMPLISTIC BELIEF THAT THE HUMAN BRAIN IS MERELY
AN INFORMATIONPROCESSING DIGITAL COMPUTER A MEAT MACHINE FROM THIS VIEW
IT FOLLOWS THAT ANY SORT OF HUMAN MENTAL CAPACITY FROM LANGUAGE
COMPREHENSION TO PERCEPTUAL REASONING TO SELFAWARENESS SHOULD BE
DUPLICABLE ON A CLEVERLY PROGRAMMED NUMBERCRUNCHER

ALTHOUGH THE AI COMMUNITY BACKED BY AMPLE PENTAGON AND INDUSTRY FUNDING
AND SERVED BY AN ARMY OF ODDBALL HACKERS HAS DONE ITS BEST TO MAKE GOOD
ON THIS VISION OVER THE YEARS THE RESULTS SO FAR ARE MIXED THE GREATEST
TRIUMPH BOTH SCIENTIFICALLY AND COMMERCIALLY HAS BEEN THE DEVELOPMENT OF
EXPERT SYSTEMS THE INTELLIGENCE OF WHICH RUNS DEEP BUT NARROW ONE SUCH
PROGRAM DIAGNOSES INFECTIOUS BLOOD DISEASES ANOTHER CALLED DEEP THOUGHT
PLAYS CHESS WELL ENOUGH TO BE RANKED 200TH IN THE WORLD AND RECENTLY GAVE
GARY KASPAROV A RUN FOR HIS MONEY

BUT WHEN IT COMES TO BASIC HUMAN COGNITIVE ABILITIES SUCH AS LEARNING AND
COMMON SENSE THE AI ALCHEMY HAS WORKED FEW WONDERS PERHAPS THIS IS DUE TO
HARDWARE LIMITATIONS TO MUSTER THE RAW COMPUTING POWER EQUIVALENT TO A
SINGLE HUMAN BRAIN ONE WOULD HAVE TO LINK UP A THOUSAND CRAY3
SUPERCOMPUTERS AT A COST OF 20 BILLION WE SHOULD ALL SWELL WITH PRIDE

STILL MR CREVIER IS CONFIDENT THAT AT THE CURRENT RATE OF AI PROGRESS
COMPUTERS WILL OVERLEAP US IN INTELLIGENCE SOME TIME IN THE NEXT CENTURY 
WHICH RAISES THE VERY REAL DANGER THAT OUR SILICON CHALLENGERS WILL RUN
AMOK AND TAKE OVER ALREADY ONE AI RESEARCHER HAS CREATED A PROGRAM THAT
SIMULATES THE MEMORY OF CYRUS VANCE AND ACTUALLY BELIEVES IT IS THE FORMER
SECRETARY OF STATE THIS SEEMS BENIGN ENOUGH POTENTIALLY FAR MORE PERILOUS
IS MR KOSKO'S ATTEMPT DESCRIBED IN FUZZY THINKING TO CAPTURE A FUZZY
PIECE OF HENRY KISSINGER'S MIND IN A COMPUTER ONCE OUR SMART WEAPONRY COMES
TO GRASP REALPOLITIK THERE IS NO TELLING WHAT SORT OF APOCALYPSE WILL ENSUE
9307140077 930714 HERO OF TIANANMEN FINDS FREEDOM TOO CAN BE A
STRUGGLE  ONCE A STAR LATER A CHAUFFEUR STUDENT LEADER WUERKAIXI
 GETS NEW START IN CALIFORNIA  BY SARAH LUBMAN STAFF REPORTER OF
THE WALL STREET JOURNAL

SAN RAFAEL CALIF LIKE LEGIONS OF HIS COUNTRYMEN WHO HAVE FLED CHINA FOR
THE WEST WUERKAIXI TWO YEARS AGO FOUND HIMSELF WORKING AS A BUSBOY IN A
CHINESE RESTAURANT EARNING THE MINIMUM WAGE AND FEARFUL OF LOSING HIS JOB
HE RECALLS GOING TO WORK ON NEW YEAR'S EVE AFTER MINOR FOOT SURGERY STAYING
PAST MIDNIGHT AND GOING HOME TO FIND HIS SOCK FILLED WITH BLOOD WHAT WAS I
SUPPOSED TO DO SHOW THEM MY TOE AND SAY I HAVE TO LEAVE' HE ASKS

MR WUERKAIXI'S JOURNEY FROM POLITICAL REPRESSION TO ECONOMIC HARDSHIP
RECAPITULATES A FAMILIAR PATTERN BUT IN HIS CASE THERE HAVE BEEN SOME
UNUSUAL STOPS ALONG THE WAY AN INVITATION TO STUDY AT HARVARD UNIVERSITY
FOR INSTANCE A STINT AS THE POLITICAL TOAST OF PARIS A TELEVISED SHOWDOWN
BEFORE A RIVETED GLOBAL AUDIENCE WITH THE PREMIER OF CHINA

IT WAS MR WUERKAIXI BRANDISHING A MEGAPHONE WHO LED THOUSANDS OF
PRODEMOCRACY STUDENTS INTO TIANANMEN SQUARE FOUR YEARS AGO HE BECAME THE
ICON OF THE FIRST REBELLION TO BE BROADCAST LIVE FROM START TO FINISH WHEN
THE PRODEMOCRACY MOVEMENT WAS CRUSHED BY TANKS MR WUERKAIXI PRONOUNCED
WOOAREKYESHEE FLED THE COUNTRY AND BECAME A LEADER OF CHINA'S EMIGRES
GALVANIZING FOREIGN AUDIENCES WITH HIS ORATORY

BUT SOMEHOW MR WUERKAIXI BECAME LOST IN THE PROMISED LAND HE IS PERSONA
NON GRATA AMONG FELLOW CHINESE EMIGRES MANY OF WHOM ARE NOW ENSCONCED AT
PRESTIGIOUS US UNIVERSITIES HE RECENTLY MOVED TO A CHEAPER APARTMENT AND
SAYS HE HASN'T BEEN ABLE TO FIND STEADY PARTTIME WORK SINCE A CHAUFFEURING
STINT ENDED FOR A 25YEAROLD MY LIFE HAS BEEN TOO MUCH MR WUERKAIXI
SAYS

NOW THE HERO OF TIANANMEN SQUARE IS STARTING OVER HE IS STUDYING FOR HIS
BACHELOR'S DEGREE AT DOMINICAN COLLEGE HERE HE FANTASIZES ABOUT OPENING A
RESTAURANT HE SAYS HE WOULD LIKE TO RETURN TO CHINA SOME DAY TO TEACH AND
TO DO WHATEVER I CAN TO BUILD DEMOCRACY

IT WAS ON THE NIGHT OF APRIL 17 1989 IN HIS UNIVERSITY'S DUSTY COURTYARD
THAT THE YOUNG REBEL GAVE THE FIRST OF MANY IMPASSIONED SPEECHES BEGINNING
WITH THE BOLD AND LATER BOMBASTIC CRY I AM WUERKAIXI HE WAS A FOUNDER
OF THE STUDENT UNION THAT HELPED ORGANIZE THE PROTESTS AND THROUGHOUT THAT
SPRING MR WUERKAIXI OCCUPIED THE SPOTLIGHT AT CRUCIAL SYMBOLIC MOMENTS
TELEVISION CAMERAS CAPTURED HIS CHARGE ATOP CLASSMATES' SHOULDERS AGAINST
A LINE OF POLICEMEN HE CHIDED PREMIER LI PENG ON NATIONAL TV THEN SANK TO
THE FLOOR IN EXHAUSTION STILL DRESSED IN HOSPITAL PAJAMAS AFTER TREATMENT
FOR EFFECTS OF A HUNGER STRIKE

MR WUERKAIXI'S ESCAPE FROM CHINA AFTER THE ARMY'S MASSACRE OF CIVILIANS WAS
NO LESS DRAMATIC HE WENT INTO HIDING THEN SLIPPED OUT OF THE COUNTRY WITH
HIS GIRLFRIEND BY BOAT HE WAS NO 2 ON THE POLICE MOSTWANTED LIST OF
STUDENT LEADERS NO 1 WAS HIS FRIEND WANG DAN WHO WAS CAUGHT AND JAILED
UNTIL LAST FEBRUARY

ONCE IN EXILE THE YOUNG HERO WAS MUCH IN DEMAND THE MEDIA SOUGHT HIM OUT
IN TOKYO PARIS AND HONG KONG WHERE TSHIRTS AND POSTERS BORE HIS LIKENESS
IN FRANCE HE BECAME VICE PRESIDENT OF THE FEDERATION FOR A DEMOCRATIC CHINA
FDC A POSTTIANANMEN EXILE GROUP HE ALSO BROKE UP WITH HIS GIRLFRIEND
LIU YAN AND LIVED WITH THE WIFE OF A CHINESE POPMUSIC STAR BEFORE LANDING
IN THE US

THE PRESSURE ON HIM WAS SO GREAT SAYS LIU YAN NOW 23 YOU COULD SEE THE
CONFLICT WUERKAIXI LIKED BEING FAMOUS AND RECOGNIZED EVERYWHERE BUT HE
DIDN'T LIKE BEING HELD RESPONSIBLE FOR EVERY SINGLE THING HE DID

ALMOST OVERNIGHT MR WUERKAIXI HAD ACHIEVED WORLDWIDE FAME AND THE
DISSIDENT'S DREAM POLITICAL AND INTELLECTUAL FREEDOM HE SETTLED IN
CAMBRIDGE MASS WHERE HARVARD ADMITTED HIM AS A TUITIONFREE SPECIAL
STUDENT

BUT THE HERO'S PENCHANT FOR DRAMA SOON LAPSED INTO PARODY HIS SPEECHES
BEGAN TO MAKE LESS AND LESS SENSE RECALLS KELVIN HOU A FORMER PRESIDENT
OF THE FDC'S SAN FRANCISCO CHAPTER EVERYTHING BEGAN TO REVOLVE AROUND
HIM

LIU BINYAN THE 68YEAROLD DOYEN OF CHINESE EMIGRES REMEMBERS THE TIME MR
WUERKAIXI SCOLDED A HARVARD AUDIENCE FOR BEING DISRESPECTFUL AND THEN
REFUSED TO SPEAK HE WAS SO ARROGANT MR LIU SAYS BUT IT WAS REALLY A
PROBLEM OF THE WHOLE YOUNGER GENERATION WHICH WENT FROM EXTREME MAOISM TO
EXTREME INDIVIDUALISM

I THINK I LOST MYSELF FOR A WHILE MR WUERKAIXI SAYS NOW

INSTEAD OF STUDYING MR WUERKAIXI JETTED AROUND MAKING SPEECHES FOR
THOUSANDS OF DOLLARS IN FEBRUARY 1990 HE DROPPED OUT OF HARVARD LATER
THAT YEAR THE FDC VOTED HIM OUT OF OFFICE HE NEVER FULFILLED WHAT WE'D
EXPECTED HIM TO DO HE EVENTUALLY DISAPPEARED SAYS RODERICK MACFARQUHAR A
PROFESSOR OF CHINESE POLITICS AT HARVARD MR WUERKAIXI SAYS HE WAS SIMPLY
TOO OVERWHELMED TO FOCUS PUT OFF BY EVERYTHING FROM AMERICANS' CASUAL
RELATIONSHIPS TO LANGUAGE DIFFICULTIES

SO MR WUERKAIXI MOVED TO CALIFORNIA GAINED WEIGHT AND FADED FROM SIGHT
FOR A WHILE HE LIVED ON A 20000 ADVANCE PAYMENT FROM AN ITALIAN FILM
PRODUCER FOR THE RIGHTS TO HIS STORY THE FILM WAS NEVER MADE A
CHINESEAMERICAN SUPPORTER PUT HIM UP FOR SEVERAL MONTHS IN LATE 1990 MR
WUERKAIXI AND A FRIEND MOVED INTO AN APARTMENT IN BERKELEY EACH PAYING 375
A MONTH BY MID1991 HIS SAVINGS WERE RUNNING OUT AND HE BEGAN LOOKING FOR
WORK

AS MR WUERKAIXI WANDERED FROM ONE JOB TO ANOTHER AT LEAST ONE EMPLOYER WAS
DUBIOUS SOME PEOPLE SAID HE'S A HERO SOME SAID HE'S A JERK RECALLS
HAMMOND KU MANAGER OF THE FARMHOUSE RESTAURANT IN REDWOOD CITY CALIF
WHERE MR WUERKAIXI WORKED PART TIME FOR FIVE MONTHS AS FLOOR MANAGER AND
HOST MR KU FOUND HIS NEW EMPLOYEE TO BE A HUMBLE YET EAGER WORKER WHO
ARRIVED ON TIME DESPITE A 90MINUTE COMMUTE AND MINIMUM WAGE

JIM LIN MANAGER OF THE CONCORD CALIF RESTAURANT WHERE MR WUERKAIXI
BUSED TABLES SAYS HE WAS A DECENT WORKER FOR THE SHORT TIME HE WORKED
THERE HE WAS REGULAR PRETTY LOW KEY

BY LAST YEAR MR WUERKAIXI WANTED TO SETTLE DOWN AND STUDY BUT ONLY
DOMINICAN COLLEGE WHICH HAS AN ACADEMIC FORGIVENESS PROGRAM WOULD
OVERLOOK HIS LACK OF DOCUMENTATION AND ADMIT HIM

MR WUERKAIXI HOPES SOMEDAY TO RETURN TO HARVARD HIS GREATEST DESIRE IS TO
RETURN TO CHINA BUT HIS OLD DEMANDS FOR RAPID POLITICAL CHANGE ALONG
WESTERN LINES HAVE FADED AMERICA IS NOT MY DREAM COUNTRY IT'S NOT WHAT I
WANT FOR CHINA HE SAYS MR WUERKAIXI HAS CONCLUDED THAT AMERICA'S EXTREME
INDIVIDUALISM AND ITS LEGAL SYSTEM CAN'T BE TRANSPLANTED AND HE SAYS THAT
THE REFORM OF CHINA'S POLITICAL SYSTEM HAS ALREADY BEGUN POINTING TO THE
RELEASE OF SOME HIGHPROFILE DISSIDENTS AND TO THE INTERNATIONAL TRAVEL
PRIVILEGES GRANTED TO OTHERS IT'S BETTER THAN NOTHING HE SAYS

HE LOOKS AHEAD BUT THE PAST HAUNTS IN AN EMPTY AUDITORIUM ON DOMINICAN'S
CAMPUS MR WUERKAIXI SOFTLY SINGS THE INTERNATIONALE THE STIRRING
COMMUNIST ANTHEM WHICH STUDENTS IN TIANANMEN SQUARE SANG TO DEMONSTRATE
THEIR PATRIOTISM RISE UP POVERTYSTRICKEN SLAVES STAND UP SUFFERERS OF
THE WORLD HE SINGS IN CHINESE THE MELODY ECHOING EERILY BENEATH THE
ROOM'S HIGH RAFTERS

SUDDENLY HE STOPS MARVELING ISN'T THAT BEAUTIFUL 9307140076 930714
LAW LEGAL BEAT BATTLE OVER TERM LIMITS MOVES FROM POLITICAL ARENA TO
COURTS  BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET
JOURNAL

THE FIGHT OVER TERM LIMITS FOR ELECTED OFFICIALS HAS MOVED FROM THE VOTING
BOOTH TO THE COURTROOM

NOVEMBER'S OUTPOURING OF SUPPORT FOR THE POPULIST NOTION HAS TURNED INTO A
FLOOD OF LITIGATION LAWSUITS HAVE BEEN FILED IN FOUR OF THE 14 STATES THAT
APPROVED TERM LIMITS AND LITIGATION IN SOME OF THE OTHER 10 STATES IS
LIKELY ULTIMATELY THE ISSUE IS EXPECTED TO COME BEFORE THE US SUPREME
COURT IN A SHOWDOWN OVER THE CENTRAL QUESTION OF WHETHER IT IS
CONSTITUTIONAL FOR STATES TO IMPOSE LIMITS ON TERMS FOR FEDERAL OFFICE

EVERYONE ON BOTH SIDES OF THE ISSUE HAS UNFORTUNATELY ACCEPTED THE FACT
THAT THE NEXT STEP IS THE COURT SAYS PHIL HANDY AN ORLANDO FLA
BUSINESSMAN WHO LED A SUCCESSFUL PUSH FOR TERM LIMITS IN FLORIDA LAST FALL
I THINK THAT IS TOO BAD IT SORT OF DENIES THE POLITICAL REALITY OF IT I
GUESS WE WILL FIGHT WHEREVER WE HAVE TO FIGHT

ALREADY SOME HEAVYWEIGHT LAWYERS ARE WEIGHING IN ON THE ISSUE RECENTLY
FORMER US ATTORNEY GENERAL GRIFFIN BELL JOINED AS LEAD COUNSEL THE TERM
LIMITS LEGAL INSTITUTE A WASHINGTON DC GROUP THAT IS HELPING TO DEFEND
TERM LIMITS AROUND THE COUNTRY ANOTHER PROPONENT WASHINGTONBASED US
TERM LIMITS HAS RETAINED WILLIAMS & CONNOLLY A POWERFUL DEFENSE FIRM IN
WASHINGTON

AND HOUSE SPEAKER TOM FOLEY WHO LAST MONTH JOINED A SUIT CHALLENGING
WASHINGTON STATE'S TERMLIMITS LAW IS BEING REPRESENTED BY PRESTON
THORGRIMSON SCHIDLER GATES & ELLIS ONE OF SEATTLE'S LARGEST LAW FIRMS

THE WASHINGTON CASE IS THE ODDSON FAVORITE TO LAND BEFORE THE HIGH COURT
FOR ONE THING IT IS THE ONLY CASE IN WHICH A MEMBER OF CONGRESS IS A
PLAINTIFF SOME COURTS HAVE HELD THAT ONLY MEMBERS HAVE LEGAL STANDING TO
BRING SUCH SUITS A FLORIDA COURT EARLIER THIS YEAR DISMISSED A SUIT BROUGHT
BY A TAXPAYER

RULINGS IN THE CASES ARE EXPECTED TO TURN ON PROVISIONS OF THE US
CONSTITUTION DEALING WITH THE QUALIFICATIONS OF FEDERAL OFFICESEEKERS AND
THE ABILITY OF STATES TO REGULATE ELECTIONS MOST OF THE LAWS ENACTED LAST
YEAR LIMITED HOUSE MEMBERS TO EIGHT YEARS AND SENATORS TO 12

MOST CONSTITUTIONAL SCHOLARS HAVE VIEWED FEDERAL TERM LIMITS AS A LEGALLY
DUBIOUS POWER GRAB BY THE STATES ON THE BASIS THAT THE CONSTITUTION'S AGE
RESIDENCY AND CITIZENSHIP REQUIREMENTS ARE THE SOLE QUALIFICATIONS FOR
CANDIDATES IN FEDERAL RACES THEY SAY THAT CONSTITUTIONAL PROVISION HAS BEEN
STRICTLY CONSTRUED BY THE SUPREME COURT

AND WHILE MOST OF LAST FALL'S LAWS WERE MODIFIED FROM PREVIOUS INITIATIVES
TO AVOID A BAN ON RUNNING AFTER A SPECIFIED NUMBER OF TERMS THE MEASURES
ONLY PROHIBIT CANDIDATES FROM APPEARING ON THE BALLOT ALLOWING THEM TO
PROCEED AS WRITEIN CANDIDATES PROPONENTS SEE THIS AS A DISTINCTION
WITHOUT A DIFFERENCE LEGALLY

WHAT THEY HAVE TRIED TO DO SOMEWHAT ADROITLY IS TO DRESS UP A TERMLIMITS
BILL IN THE CLOTHES OF A BALLOTACCESS BILL SAYS FREDRIC TAUSEND A LAWYER
FOR THE PRESTON THORGRIMSON FIRM REPRESENTING MR FOLEY MR TAUSEND SAYS
SUCH AN ARGUMENT WON'T FLY THE LAW ITSELF IS AND PURPORTS TO BE AND
OBVIOUSLY IS A TERMLIMITS LAW HE SAYS

OTHER ISSUES BEING RAISED INCLUDE THE QUESTION OF WHETHER THE RESTRICTIONS
VIOLATE CONSTITUTIONAL GUARANTEES OF FREEDOM OF ASSOCIATION MICHIGAN
LEGISLATORS MEANWHILE ARE BELIEVED TO BE CONSIDERING A SUIT ON THE THEORY
THAT TERM LIMITS VIOLATE THE FEDERAL VOTING RIGHTS LAW BECAUSE LIMITS HURT
THE ABILITY OF MINORITY CANDIDATES TO PURSUE OFFICE

BUT PROPONENTS ARE BULLISH ON PROSPECTS FOR UPHOLDING THE TERM LIMITS
NOTING THAT THE SUPREME COURT HAS ALLOWED STATES TO RATHER LIBERALLY
REGULATE BALLOTS PURSUANT TO THEIR AUTHORITY OVER THE TIME PLACE AND
MANNER OF ELECTIONS

FOR INSTANCE THE COURT HAS UPHELD STATE LAWS THAT BAR LOSERS IN PRIMARY
ELECTIONS FROM RUNNING IN GENERAL ELECTIONS SOCALLED ANTISORE LOSER
STATUTES IT ALSO HAS ALLOWED STATES TO KEEP MINORPARTY CANDIDATES OFF THE
BALLOT IF THEY DON'T ACHIEVE MINIMAL SUPPORT

THE ESTABLISHMENT ACADEMICS BETTER GO BACK AND READ THEIR CONSTITUTION
SAYS JAMES M JOHNSON AN OLYMPIA WASH LAWYER WHO IS HELPING DEFEND THAT
STATE'S LAW

FOR INSTANCE MR JOHNSON SAYS THE CALIFORNIA SUPREME COURT IN 1991 UPHELD
AN INITIATIVE LIMITING THE TERMS OF STATE OFFICEHOLDERS I DON'T THINK YOU
CAN FIND A WRITING BEFORE THE RULING SUGGESTING THAT CALIFORNIA WOULD WIN
THAT CASE SAYS MR JOHNSON BUT GIVEN THE CALIFORNIA COURT'S 61 VOTE IN
THE DECISION HE ADDS IT WASN'T A CLOSE CASE

SINCE 1991 THE POWER TO IMPOSE SUCH RESTRICTIONS ON STATE AND LOCAL
OFFICEHOLDERS HAS BECOME FAIRLY UNCONTESTED LOS ANGELES FOR INSTANCE
ENACTED TERM LIMITS DURING ITS RECENT MAYORAL CAMPAIGN A NEW YORK CITY
GROUP MEANWHILE FILED SUIT IN STATE COURT LAST MONTH TO GET A TERMLIMITS
INITIATIVE ON THE BALLOT FOR NEXT FALL'S MAYORAL AND CITY COUNCIL ELECTION

CHANGES IN THE WAY BRITAIN FILLS JUDICIAL VACANCIES ARE EXPECTED TO ENABLE A
BROADER FIELD OF LAWYERS TO BE CONSIDERED FOR THE POSTS

BRITISH COURT OFFICIALS ANNOUNCED LAST WEEK THAT JUNIOR JUDICIAL POSTINGS
WILL BE ADVERTISED IN NEWSPAPERS AND LEGAL JOURNALS WITH THE NOTICES
INDICATING THE SPECIFIC QUALIFICATIONS LAYPEOPLE ALSO WILL BE INCLUDED ON
JUDICIAL SELECTION PANELS IN A BID TO BRING MORE OPENNESS TO A SYSTEM
FREQUENTLY CRITICIZED AS A SECRETIVE OLDBOYS' NETWORK

LAWYERS' GROUPS RESPONDED FAVORABLY RODGER PANNONE PRESIDENT OF BRITAIN'S
LAW SOCIETY SAID THE PROPOSALS WILL HELP SOLICITORS MOVE UP TO POSTS ON THE
BENCH THAT HAVE TRADITIONALLY GONE TO BARRISTERS SOLICITORS ARE THE LAWYERS
WHO PREPARE A CASE FOR TRIAL BARRISTERS ARE THE ADVOCATES WHO APPEAR IN
COURT

TARIFF BATTLE THE US DEPARTMENT OF JUSTICE SAID IT WILL APPEAL A RULING
BY THE INTERNATIONAL COURT OF TRADE THAT THE US WRONGLY IMPOSED A 25
TARIFF MEANT FOR CARGO VEHICLES ON AN IMPORTED TWODOOR SPORTUTILITY
VEHICLE THE MAY RULING BY JUDGE JANE A RESTANI IN NEW YORK IN A CASE
BROUGHT BY NISSAN MOTOR CO WAS SEEN AS UNDERMINING EFFORTS BY DOMESTIC AUTO
MAKERS TO GET THE GOVERNMENT TO IMPOSE THE 25 DUTY ON IMPORTED FOURDOOR
MINIVANS AS WELL THE TARIFF ON FOURDOORS IS 25

TEEN DISCRIMINATION MARYLAND ACCUSED HARDEE'S FOOD SYSTEMS INC A UNIT OF
IMASCO LTD OF AGE DISCRIMINATION FOR FIRING ALL ITS 14YEAROLD AND
15YEAROLD EMPLOYEES DURING A FEDERAL CRACKDOWN ON CHILDLABOR LAWS THE
ASSOCIATED PRESS REPORTED THE RESTAURANT CHAIN FIRED MORE THAN 2000
WORKERS UNDER THE AGE OF 16 NATIONWIDE IN 1991 CLAIMING THE PROBE MADE IT
TOO RISKY TO EMPLOY THEM FEDERAL LAW PROHIBITS SUCH YOUTHS FROM WORKING
PAST 7 PM ON SCHOOL NIGHTS AT A HEARING THIS WEEK MARYLAND'S HUMAN
RELATIONS COMMISSION CHARGED THAT THE FIRINGS VIOLATED THE STATE'S
AGEDISCRIMINATION LAW BY UNFAIRLY PENALIZING THE TEENAGERS

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 9307140075 930714 FEDERAL EXPRESS SAYS PROFIT INCREASED 56 IN
FISCAL 4TH PERIOD

MEMPHIS TENN FEDERAL EXPRESS CORP REPORTED A 56 RISE IN PROFIT FOR
THE FISCAL FOURTH QUARTER AS IT CONTINUED TO REDUCE ITS INTERNATIONAL
LOSSES

THE AIREXPRESS CONCERN SAID NET INCOME FOR THE QUARTER ENDED MAY 31 ROSE TO
558 MILLION OR 101 A SHARE FROM 358 MILLION OR 66 CENTS A SHARE A
YEAR AGO REVENUE CLIMBED 8 TO 204 BILLION FROM 189 BILLION

THE RESULTS RELEASED AFTER MARKETS CLOSED WERE IN LINE WITH ANALYSTS'
EXPECTATIONS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY
FEDERAL SHARES CLOSED AT 46875 UP 1

SEPARATELY FEDERAL SAID IT IS TALKING TO DEUTSCHE LUFTHANSA AG ABOUT THE
PURCHASE OF AN UNSPECIFIED NUMBER OF PASSENGER JETS THAT WOULD BE CONVERTED
TO FREIGHT CARRIERS ALAN GRAF CHIEF FINANCIAL OFFICER SAID THE
TRANSACTION COULD BE VALUED AT CLOSE TO 400 MILLION AND TALKS COULD BE
CONCLUDED BY FALL

FEDERAL SAID LOSS FROM INTERNATIONAL OPERATIONS IN THE FOURTH QUARTER
NARROWED TO 254 MILLION FROM 532 MILLION A YEAR EARLIER OVERSEAS
OPERATIONS WILL BREAK EVEN BY FISCAL 1995 AND POSSIBLY DURING FISCAL 1994
MR GRAF SAID

FEDERAL FACES CONTINUED PRESSURE ON DOMESTIC PROFITABILITY FROM PRICE
COMPETITION PARTICULARLY ON ITS LARGE ACCOUNTS THE COMPANY'S DEFERRED
DELIVERY SERVICES WITH THEIR LOWER PROFIT MARGINS CONTINUE TO GROW FASTER
THAN THE MORE PROFITABLE NEXTMORNING DELIVERIES WITHIN THE US FEDERAL
REPORTED PROFIT MARGINS OF 108 IN THE QUARTER DOWN FROM 12 A YEAR AGO
PACKAGE COSTS FELL 1 AS REVENUE PER PACKAGE DECLINED 3 IN THE QUARTER

FOR FISCAL 1993 THE COMPANY POSTED PROFIT OF 539 MILLION OR 98 CENTS A
SHARE REFLECTING A 559 MILLION CHARGE FOR POSTRETIREMENT BENEFITS
FEDERAL HAD A NET LOSS OF 1138 MILLION OR 211 A SHARE IN THE PREVIOUS
YEAR REVENUE ROSE TO 781 BILLION FROM 755 BILLION 9307140074 930714
REVIEW & OUTLOOK EDITORIAL FBI DIRECTOR ROSE

ALL OF WASHINGTON WANTS TO KNOW WHEN POOR BELEAGUERED WILLIAM SESSIONS WILL
RESIGN AS FBI DIRECTOR A SURE INDICATION THAT THIS IS THE WRONG ISSUE
WE'D RATHER KNOW WHO IS GOING TO SELECT THE NEXT SUCCESSOR TO J EDGAR
HOOVER

PRESIDENT CLINTON WILL HAVE THE FINAL WORD BUT AS WITH ALL APPOINTMENTS IT
WILL MATTER WHOSE ADVICE HIS CHOICE REFLECTS WILL IT BE THAT OF JANET RENO
THE OSTENSIBLE ATTORNEY GENERAL OR WILL MR CLINTON LISTEN TO HIS LEGAL
CRONIES FROM LITTLE ROCK WHO ARE ALREADY PLACED AT THE HEART OF HIS
ADMINISTRATION WE KNOW WHO WOULD BETTER REASSURE AMERICANS ABOUT THE
PROSPECTS FOR APOLITICAL JUSTICE

MS RENO IS OF COURSE THE LATEST MEDIA DARLING AND WE MIGHT EVEN JOIN THE
PRAISE IF SHE EVER REALLY GETS CONTROL OF THE JUSTICE DEPARTMENT FOR THE
EVIDENCE SO FAR IS THAT CONTROL HAS IN FACT RESTED WITH APPOINTEES FROM
LITTLE ROCK'S ROSE LAW FIRM WHICH HAPPENS TO BE HILLARY RODHAM CLINTON'S
FORMER FIRM

ON THE DAY OF THE WACO CRISIS FOR EXAMPLE MR CLINTON SPOKE NOT WITH MS
RENO BUT WITH HIS GOLFING PAL WEBSTER HUBBELL BY THEN NOMINATED TO BE
ASSOCIATE ATTORNEY GENERAL EARLIER AS WHITE HOUSE LIAISON MR HUBBELL
WAS THE ONE WHO SET UP THE MEETINGS THAT LED TO JUSTICE REVERSING ITSELF ON
A CORRUPTION TRIAL OF A DEMOCRATIC CONGRESSMAN AND THE SAME MR HUBBELL MET
WITH CONGRESSIONAL BARON JOHN DINGELL BEFORE MS RENO AGREED TO THE HIGHLY
UNUSUAL MOVE OF LETTING THE DINGELL STAFF INVESTIGATE CAREER JUSTICE
ATTORNEYS ABOUT PROSECUTORIAL JUDGMENTS IT'S FAIR TO ASK IF THESE INCIDENTS
ARE JUST THE TIP OF THE HUBBELL TELESCOPE AT JUSTICE

THEN THERE ARE THE TWO FORMER ROSE PARTNERS IN THE WHITE HOUSE COUNSEL'S
OFFICE VINCENT FOSTER THE DEPUTY WHITE HOUSE COUNSEL SERVES AS
ALLPURPOSE ADVISER TO HILLARY CLINTON ON HEALTH REFORM THICKETS AND OTHER
MATTERS HIS SISTER SHEILA FOSTER ANTHONY IS SLATED TO RUN JUSTICE'S
LEGISLATIVE OFFICE AND WILLIAM KENNEDY III THE NUMBER THREE WHITE HOUSE
COUNSEL SOMEHOW FELT NO QUALMS ABOUT ASKING THE FBI TO INVESTIGATE THE
WHITE HOUSE TRAVEL OFFICE WITHOUT SO MUCH AS INFORMING MS RENO THIS IS THE
SAME WHITE HOUSE THAT ALSO ORDERED MS RENO TO FIRE EVERY SITTING US
ATTORNEY ANOTHER BREAK WITH LONGTIME PRACTICE

AND DON'T FORGET THE FOURTH AND MOST POWERFUL FORMER ROSE PARTNER THE FIRST
LADY WE NOW KNOW MRS CLINTON INQUIRED ABOUT THE TRAVEL OFFICE AFFAIR WITH
MR FOSTER AND THAT SHE WAS PROMINENTLY CARBONED ON COPIES OF CRUCIAL
MEMOS SHE ALSO HANDPICKED OLD FRIEND BERNARD NUSSBAUM FOR THE TOP WHITE
HOUSE COUNSEL POSITION SO IN A SENSE THE ENTIRE COUNSEL'S OFFICE REPORTS TO
HER IF NOT OFFICIALLY AT LEAST INFORMALLY

MRS CLINTON'S FRIENDS KEEP SHOWING UP FOR CRUCIAL JUSTICE POSTS TOO
ELEANOR ACHESON THE NOMINEE FOR CHIEF JUDGE PICKER ROOMED WITH HER AT
WELLESLEY GERALD TORRES WHO IS SLATED TO RUN THE ENVIRONMENTAL CRIMES
DIVISION ONCE WORKED AT THE CHILDREN'S DEFENSE FUND WHERE MRS CLINTON WAS
CHAIRMAN OF THE BOARD AND MRS CLINTON HAD ATTENDED THE WEDDING OF HER
LONGTIME FRIEND LANI GUINIER

NOW WE'VE ALWAYS BELIEVED PRESIDENTS DESERVE THE NOMINEES THEY WANT EVEN A
PRESIDENT AND FIRST LADY WHO USED TO DENOUNCE ED MEESE AS A POLITICAL
CRONY OF RONALD REAGAN BUT HYPOCRISY ASIDE CRONYISM IS A LOT MORE SERIOUS
WHEN IT BEGINS TO INVOLVE CRIMINAL PROSECUTION AND ESPECIALLY THE FBI THE
FBI'S POLICE POWER IS ARGUABLY THE MOST EASILY ABUSED IN WASHINGTON AS THE
REVELATIONS ABOUT THE LATE MR HOOVER PROVE

SO IT'S A GOOD SIGN THAT MS RENO SUCCEEDED IN GETTING HER OWN CHOICE
CARTERERA VETERAN JO ANN HARRIS TO RUN JUSTICE'S CRIMINAL DIVISION IT'S
EVEN BETTER THAT IN THE PROCESS SHE HAD TO BEAT BACK ANOTHER HILLARY CRONY
NEW YORK LAWYER SUSAN THOMASES WHO WANTED THE JOB FOR HER LAW PARTNER
BENITO ROMANO A FORMER AIDE TO POLITICAL PROSECUTOR RUDY GIULIANI

BUT THE BIGGER TEST WILL BE THE FBI POST THE BEST NAME THAT HAS SO FAR
SURFACED IN PUBLIC IS LOUIS FREEH A RESPECTED NEW YORK JUDGE IN ANY EVENT
THE CHOICE SHOULD BE SOMEONE WITH ENOUGH INDEPENDENCE TO BE ABLE TO REFUSE
THE NEXT TIME WILLIAM KENNEDY III ASKS THE FBI TO INVESTIGATE SOME POLITICAL
ENEMY A ROSE CLIQUE FROM LITTLE ROCK THAT HAS ALREADY SHOWN A WILLINGNESS
TO CUT MANY LEGAL CORNERS NEEDS ADULT SUPERVISION 9307140073 930714
INTERNATIONAL SUNRIDER REPRESENTATIVES FREED BY SEOUL OFFICIALS

SEOUL SOUTH KOREA FOUR KOREABASED REPRESENTATIVES OF US
HEALTHPRODUCTS RETAILER SUNRIDER INTERNATIONAL OF TORRANCE CALIF WERE
FREED FROM A SEOUL DETENTION CENTER AFTER BEING HELD ON SUSPICION OF
VIOLATING KOREA'S DOORTODOOR SALES ACT THREE OF THE MEN HAD BEEN HELD
SINCE JUNE 29 THE FOURTH WAS HELD ONLY FOR A DAY

THE RELEASE MONDAY FOLLOWED BY FIVE DAYS THE RELEASE OF TWO REPRESENTATIVES
OF AMWAY CORP OF ADA MICH WHO HAD BEEN JAILED ON SIMILAR CHARGES THE
CASES ARE EXPECTED TO GO TO TRIAL WITHIN TWO MONTHS DEFENSE LAWYERS SAID
9307140072 930714 BUSINESS BRIEF STANLEY WORKS US JUDGE FINES
COMPANY OVER ANTITRUST VIOLATIONS

A FEDERAL JUDGE ORDERED STANLEY WORKS A MAKER OF TOOLS AND HARDWARE IN NEW
BRITAIN CONN TO PAY 6 MILLION IN FINES AND OTHER PAYMENTS FOR ANTITRUST
VIOLATIONS INVOLVING ALLEGED PRICE FIXING IN ARCHITECTURAL HINGES

THE FIGURE INCLUDES 1 MILLION EARMARKED FOR SETTING UP UNIVERSITY ETHICS
PROGRAMS THE COURT WILL DISTRIBUTE THE MONEY TO UNIVERSITIES TO BE NAMED IN
THE NEXT 30 DAYS BY US DISTRICT COURT JUDGE CLYDE S CAHILL IN ST LOUIS

THE DECISION IS A REDUCTION OF AN EARLIER 8 MILLION FINE IMPOSED IN APRIL
AT THAT TIME JUDGE CAHILL HAD OFFERED TO REDUCE THE FINE IF STANLEY WOULD
CONTRIBUTE 1 MILLION TO ESTABLISH ETHICS PROGRAMS AT FOUR LAW SCHOOLS
STANLEY SAID IT HAD ESTABLISHED RESERVES IN CONNECTION WITH THE CASE TO
COVER THE FINES AND PAYMENTS

UNDER THE NOCONTEST PLEA STANLEY NEITHER ADMITTED NOR DENIED THE
ALLEGATIONS BUT IS SUBJECT TO THE SAME PENALTIES AS IF IT HAD PLEADED
GUILTY 9307140071 930714 MARKETING & MEDIA AT&T TO IMPROVE THE SOUND
QUALITY OF TELEPHONE CALLS  USING PATENTED TECHNOLOGY SERVICE TO
OPEN NEW FRONT IN THE LONGDISTANCE WARS  BY JOHN J KELLER 
STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK OPENING A NEW FRONT IN THE LONGDISTANCE WARS AMERICAN
TELEPHONE & TELEGRAPH CO SAID IT WILL USE A PATENTED TECHNOLOGY TO GREATLY
ENHANCE THE SOUND QUALITY OF CALLS MADE OVER ITS NETWORK

CALLED TRUEVOICE THE NEW SERVICE WILL BEGIN IN SOME AREAS IN SEPTEMBER
AND WILL BE AVAILABLE ACROSS THE COUNTRY BY THE END OF 1994 AS AT&T MAKES
SOFTWARE AND HARDWARE CHANGES IN ITS NETWORK

TRUEVOICE WON'T TURN A STALLONE INTO A SEVAREID AS A DEMONSTRATION SHOWED
YESTERDAY BUT A RECORDED VOICE HEARD THROUGH A REGULAR PHONE CALL SOUNDS
TREBLY AND TINNY COMPARED WITH TRUEVOICE'S HIGHER FIDELITY AND BASSIER SOUND
 AS IF AT&T RAN THE CALL THROUGH A GIANT GRAPHIC EQUALIZER

AT&T CONSUMER SERVICES PRESIDENT MERRILL TUTTON SAID THE TECHNOLOGY WILL DO
FOR LONGDISTANCE CALLING WHAT THE DIGITAL COMPACT DISK DID FOR THE
RECORDING INDUSTRY

AND THE SERVICE IS FREE TO ANYBODY WHO MAKES A CALL OVER THE AT&T NETWORK
WE WANT TO MOVE THIS OFF A PRICE GAME MR TUTTON SAID REFERRING TO THE
PRICESLASHING DISCOUNT PLANS SUCH AS MCI COMMUNICATIONS CORP'S FRIENDS &
FAMILY THAT HAVE TRIMMED INDUSTRY PROFITS HE SAID A RECENT AT&T SURVEY OF
ITS OWN CUSTOMERS AND THOSE OF MCI AND SPRINT CORP SHOWED EIGHT OUT OF 10
PEOPLE PREFERRED TRUEVOICE'S SOUND OVER REGULAR PHONE CALLS

REGULAR CALLS MADE OVER WHOSE NETWORK AT&T'S ASKED A SPRINT SPOKESMAN
WE SET THE STANDARD FOR SOUND QUALITY SIX YEARS AGO WHEN WE FINISHED OUR
ALLDIGITAL FIBEROPTIC NETWORK ADDED AN MCI SPOKESWOMAN ALL I CAN
THINK OF IS NEW COKE A MARKETING GIMMICK NOBODY REALLY NEEDED

IN TV ADS SCHEDULED TO BEGIN RUNNING DURING LAST NIGHT'S MAJOR LEAGUE
ALLSTAR GAME AT&T ASKS CALLERS TO TRY OUT THE NEW SERVICE BY CALLING A
TOLLFREE 800 NUMBER AND TO PUNCH IN THEIR HOME NUMBERS PRINT ADS WILL BE
SIMILAR THIS PROMPTED SPRINT TO CHARGE THAT AT&T WAS TRYING TO CAPTURE
TELEMARKETING LEADS A CHARGE THAT WASN'T DENIED BY AN AT&T SPOKESMAN

JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC CALLED
AT&T'S SERVICE A VERY CLEVER WAY TO GET CUSTOMERS' ATTENTION WITHOUT
CUTTING RATES AND AFTER AT&T'S MASSIVE ADVERTISING OF TRUEVOICE MCI AND
SPRINT WILL HAVE TO ADDRESS THIS AT AN ADDITIONAL COST HE SAID

MR TUTTON WAS RELUCTANT TO FULLY EXPLAIN THE TECHNOLOGY BEHIND TRUEVOICE
CALLING IT PROPRIETARY OR WHAT AT&T WILL SPEND TO DEPLOY IT NATIONWIDE

BUT PETER TU THE BELL LABS SCIENTIST WHOSE TEAM DEVELOPED THE TECHNOLOGY
SAID IT USES SPECIAL DIGITAL SIGNAL PROCESSING SOFTWARE AND HARDWARE FOR
WHICH AT&T BELL LABORATORIES GOT A PATENT IN MARCH 9307140070 930714 TWO
AIR FORCE GENERALS JOUST OVER US WORK  PLAN TO SWITCH
MAINTENANCE JOBS TO DEFENSE FIRMS IS HOTLY DEBATED ISSUE  BY
JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL

A TOP AIR FORCE ACQUISITION OFFICER SIGNALING A DEEP POLICY DIVISION WITHIN
THAT SERVICE SAID HE VEHEMENTLY OPPOSES A PROPOSED WHOLESALE TRANSFER OF
AIR FORCE MAINTENANCE WORK TO DEFENSE COMPANIES

GEN RONALD YATES CHIEF OF THE 125000WORKER AIR FORCE MATERIEL COMMAND
SAID IN AN INTERVIEW THAT INSTEAD HE WOULD LIKE INDUSTRY TO COMPETE WITH AIR
FORCE DEPOTS FOR ONLY ABOUT 400 MILLION A YEAR IN WORK THE REST OF THE AIR
FORCE'S 4 BILLION IN ANNUAL SPENDING FOR MAINTENANCE HE SAID WOULD BE
SUBJECT TO COMPETITION AMONG DEPOTS IN THE AIR FORCE NAVY OR ARMY

THE ISSUE WHICH ALREADY IS BEING HOTLY DISPUTED BETWEEN THE AIR FORCE AND
INDUSTRY COULD PROVIDE AN EARLY CHALLENGE FOR SHEILA E WIDNALL THE
WOMAN PRESIDENT CLINTON HAS SAID HE PLANS TO NOMINATE SOON AS AIR FORCE
SECRETARY ULTIMATELY OFFICIALS IN BOTH THE MILITARY AND IN INDUSTRY
SUGGEST THE FESTERING ISSUE WILL HAVE TO BE RESOLVED BY A NEW DEFENSE
DEPARTMENT POLICY COVERING ALL THE SERVICES

GEN YATES SAID HE FIRMLY OPPOSES THE POLICY STANDS ON THE ISSUE THAT WERE
OUTLINED PUBLICLY A WEEK AGO BY GEN MICHAEL CARNS THE AIR FORCE VICE CHIEF
OF STAFF GEN CARNS HAD SAID HE WANTS TO SHIFT MUCH OF THE AIR FORCE'S
ANNUAL SPENDING FOR MODIFICATION AND MAINTENANCE OF EQUIPMENT TO PRIVATE
INDUSTRY CURRENTLY THE WORK IS DONE BY THE AIR FORCE'S FIVE LOGISTICS
CENTERS WHICH EMPLOY ABOUT 55000 CIVILIANS GEN CARNS SAID HE ENVISIONED
PRESERVING FOR THE AIR FORCE CENTERS ONLY ABOUT 15 TO 20 OF THEIR CURRENT
WORKLOAD

BUT GEN YATES SAID THAT THOSE ARE NOT MY CONCEPTS IN RESPONSE TO A
QUESTION HE SAID THAT HE ISN'T REQUIRED TO ADOPT THE VICE CHIEF'S
PERSPECTIVE BECAUSE IN AIR FORCE REPORTING LINES I DON'T WORK FOR GEN
CARNS BOTH MEN REPORT TO AIR FORCE CHIEF OF STAFF GEN MERRILL MCPEAK

DEFENSEINDUSTRY MANAGERS ASSERT THAT GEN YATES IS FIGHTING A LARGER POLICY
REVISION AT THE PENTAGON MILITARY LOGISTICS OFFICIALS SAID MR FUQUA ARE
TRYING TO PRESERVE THE MAINTENANCE APPROACH THEY USED AT THE HEIGHT OF THE
COLD WAR WHEN THE MILITARY NEEDED A HUGE READY CAPACITY FOR SUPPORTING A
PROLONGED CONFLICT WITH THE FORMER SOVIET UNION INDUSTRY OFFICIALS ALSO
CONTEND THAT WHILE THE BIDDING PROCESS HAS BEEN MADE FAIRER BY THE AIR
FORCE THE SERVICE STILL KEEPS THE BEST CONTRACTS AND THE HIGHEST WORK
VOLUMES FOR ITSELF

AIR FORCE RECORDS SHOW THAT OF THE PAST NINE CONTRACTS AWARDED FIVE WENT TO
THE AIR FORCE WITH THREE TO PRIVATE INDUSTRY AND ONE TO THE ARMY THE AIR
FORCE CONTRACTS WERE VALUED AT 1225 MILLION INDUSTRY CONTRACTS TOTALED
27 MILLION AMONG THE COMPANIES RECEIVING AWARDS WERE ESYSTEMS GTE CORP
AND WESTINGHOUSE ELECTRIC CORP

A SPOKESMAN FOR GEN CARNS SAID THE ISSUE ISN'T LIKELY TO BE SETTLED SOON
AND EVENTUALLY WILL HAVE TO BE RESOLVED BY THE SECRETARY OF DEFENSE BECAUSE
SIMILAR PROBLEMS FACE ALL SERVICES GENS CARNS AND YATES MAY DISAGREE BUT
IT'S JUST A DISCUSSION OF ISSUES AND THE DEBATES ARE NOT OVER WITH HE
SAID THE SPOKESMAN ADDED THAT GEN CARNS'S IDEA IS THAT YOU NEED TO
SUSTAIN THE INDUSTRIAL BASE BECAUSE YOU MAY NEED IT IN THE FUTURE IT'S A
LOT HARDER TO RETOOL SOMETHING FROM SCRATCH RATHER THAN INCREASING ITS
CAPACITY IF IT'S ALREADY IN EXISTENCE

JOHN J FIALKA IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9307140069
930714 MARKETING & MEDIA HOME SHOPPING SHAKES UP BOARD HELPING
MERGER  BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET
JOURNAL

NEW YORK HOME SHOPPING NETWORK INC SHOOK UP ITS BOARD IN A MOVE THAT
EASES POTENTIAL CONFLICTS OF INTERESTS AND HELPS TO ADVANCE A MERGER
PROPOSAL THE SCANDALTINGED ELECTRONIC RETAILER RECEIVED TWO DAYS AGO FROM
RIVAL QVC NETWORK INC

AND IN A STEP THAT ELIMINATES A POTENTIALLY AWKWARD SITUATION FOR THE
COMPANY IT ALSO SAID DIRECTORS WOULD ASSENT TO THE WISHES OF ITS
BELEAGUERED CHAIRMAN ROY M SPEER AND END HIS STATUS AS TOP OFFICER

HOME SHOPPING SAID IT ACCEPTED THE RESIGNATIONS OF DIRECTORS JOHN MALONE AND
PETER BARTON RESPECTIVELY THE CHAIRMAN AND PRESIDENT OF LIBERTY MEDIA
CORP AND NAMED THREE NEW MEMBERS

LIBERTY MEDIA CONTROLS HOME SHOPPING AND WITH TWO PARTNERS ALSO CONTROLS
QVC MESSRS MALONE AND BARTON ARE ALSO DIRECTORS OF QVC WHICH ON MONDAY
PROPOSED TO MERGE WITH HOME SHOPPING IN A STOCK SWAP VALUED AT UP TO 14
BILLION

WITH MESSRS MALONE AND BARTON BOARD MEMBERS OF BOTH COMPANIES THE QUESTION
OF POTENTIAL CONFLICTS OF INTERESTS HAD BECOME INCREASINGLY COMPLICATED FOR
EXAMPLE HOME SHOPPING UNTIL YESTERDAY'S SHAKEUP ANYWAY APPARENTLY
DIDN'T HAVE SUFFICIENT INDEPENDENT DIRECTORS TO ASSEMBLE A SPECIAL COMMITTEE
TO WEIGH THE MERGER PROPOSAL

TO SUCCEED MESSRS MALONE AND BARTON AND FILL ANOTHER BOARD VACANCY THE
COMPANY NAMED GEORGE C MCNAMEE CHAIRMAN OF FIRST ALBANY COS A HOLDING
CONCERN LEO J HINDERY JR CHIEF EXECUTIVE OFFICER OF INTERMEDIA PARTNERS
AND JOHN DRAPER A LIBERTY MEDIA EXECUTIVE MR HINDERY'S INTERMEDIA A
CABLETELEVISION CONCERN IS PARTLY OWNED BY LIBERTY MEDIA

SUBSEQUENTLY HOME SHOPPING ESTABLISHED A SPECIAL COMMITTEE TO STUDY THE
MERGER PROPOSAL NAMING MR MCNAMEE AS CHAIRMAN AND APPOINTING TWO OTHER
DIRECTORS GERALD HOGAN HOME SHOPPING'S CHIEF EXECUTIVE OFFICER AND
OUTSIDER J ANTHONY FORSTMAN

HOME SHOPPING DIDN'T SAY WHY MR SPEER HAD ASKED THAT THE CORPORATE BYLAWS
BE AMENDED SO THAT THE CHAIRMAN IS NO LONGER AN OFFICER HE HAS BEEN AT THE
HEART OF THE SCANDAL UNFOLDING THIS YEAR AT HOME SHOPPING INVOLVING NUMEROUS
ALLEGATIONS OF IMPROPRIETIES BY CURRENT AND FORMER COMPANY EXECUTIVES

ALTHOUGH A MAJOR FIGURE IN THE CONTROVERSY MR SPEER AS TOP OFFICER HAD
CONTINUED TO SIGN CERTAIN FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION CAUSING EMBARRASSMENT FOR SOME INSIDERS PEOPLE FAMILIAR WITH
THE SITUATION SAY

DESPITE YESTERDAY'S MOVE AGAINST MR SPEER HE RETAINS THE TITLE OF CHAIRMAN
AND CONTINUES AS A DIRECTOR PURSUANT TO HIS CONTRACT THE COMPANY SAID
HOME SHOPPING REITERATED THAT MR SPEER HASN'T BEEN INVOLVED IN THE
COMPANY'S MANAGEMENT SINCE MIDFEBRUARY WHEN LIBERTY MEDIA ASSUMED CONTROL

SEPARATELY MR SPEER SOLD A TOTAL OF 46 MILLION COMMON SHARES IN THE
COMPANY OR 53 OF HIS COMMONSTOCK HOLDINGS FROM JUNE 14 TO JUNE 30 SEC
FILINGS SHOW THE SALES FETCHED 10 TO 12 A SHARE

HOME SHOPPING SHARES HAVE RISEN SHARPLY SINCE MONDAY WHEN IT AGREED TO
MERGE WITH QVC IN A STOCK SWAP VALUED AT AS MUCH AS 14 BILLION IN NEW
YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY HOME SHOPPING SHARES CLOSED
AT 1475 UP 1125 9307140068 930714 BUSINESS BRIEF HILTON HOTELS
CORP SECONDQUARTER NET FELL 17 ON LOWER GAMBLING VOLUME

HILTON HOTELS CORP SQUEEZED BY CONTINUED WEAK RESULTS AT ITS BIG HOTELS IN
NEW YORK AND HAWAII AND A STREAK OF BAD LUCK AT A LAS VEGAS CASINO REPORTED
A 17 DROP IN SECONDQUARTER NET INCOME TO 268 MILLION OR 56 CENTS A
SHARE FROM 324 MILLION OR 68 CENTS A SHARE A YEAR AGO

REVENUE ROSE 17 TO 3452 MILLION FROM 2948 MILLION A YEAR AGO WHILE
OPERATING RESULTS FOR HOTELS AND GAMBLING WERE ESSENTIALLY FLAT THE PROFIT
DECLINE STEMS LARGELY FROM A 45 MILLION INCREASE IN NET INTEREST EXPENSE
FROM THE ISSUANCE OF 300 MILLION OF 10YEAR DEBENTURES

IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY HILTON'S SHARES WERE
QUOTED AT 4475 DOWN 125

ALTHOUGH THE WEAKNESS IN THE COMPANY'S HOTELS HAS BEEN A CONTINUING PROBLEM
IT HAS GENERALLY BEEN OFFSET BY INCREASES IN GAMBLING BUSINESS IN RECENT
QUARTERS HOWEVER DECREASED TABLEGAME VOLUME AT THE LAS VEGAS HILTON
OVERSHADOWED GAINS AT THE FLAMINGO HILTON LAS VEGAS AND THE RENO CASINO
DURING THE SECOND QUARTER 9307140067 930714 LEISURE & ARTS ON DISK 
YOUNG TURKS AND OLD HANDS  BY MARK SWED

MIECZYSLAW HORSZOWSKI'S RECENT DEATH AT THE AGE OF 100 SIGNALED THE END OF
AN ERA THAT ERA OF LEGENDARY PIANISM BEGAN TO FADE ABOUT A DECADE AGO WHEN
ARTUR RUBINSTEIN DIED FOLLOWED BY VLADIMIR HOROWITZ CLAUDIO ARRAU AND
RUDOLF SERKIN HORSZOWSKI WAS THE LAST PIANIST STILL TEACHING AND RECORDING
WHO HAD STUDIED AND PERFORMED IN THE 19TH CENTURY

BUT ANYONE WHO WALKS INTO A RECORD SHOP WILL HARDLY NOTICE THIS LOSS SINCE
WE HAPPEN TO LIVE IN OUR OWN ERA OF EXTRAVAGANT PIANISM IN WHICH THE DEAD
LEGENDS THE ESTABLISHED MIDDLEAGED KEYBOARD ARTISTS AND AN EMERGING
GENERATION OF YOUNG STARS COEXIST TIMELESSLY ON CD THE NEW BREED OF
PIANISTS UNDER 30 IS PARTICULARLY REMARKABLE PETER JABLONSKI FOR INSTANCE
MADE A NAME FOR HIMSELF AS A JAZZ DRUMMER IN HIS NATIVE SWEDEN WHILE STILL A
BOY BORN IN 1971 HE MADE HIS DEBUT RECORDING ON THE LONDON LABEL LAST
YEAR OF GERSHWIN'S PIANO CONCERTO IN F WITH VLADIMIR ASHKENAZY CONDUCTING
THE ROYAL PHILHARMONIC ORCHESTRA AND NOW HE HAS FOLLOWED THAT UP WITH A
DISK OF RACHMANINOFF'S PAGANINI VARIATIONS AND SHOSTAKOVICH'S FIRST PIANO
CONCERTO BOTH WITH THE SAME TEAM ALL THE PIECES ON THESE DISKS ARE A YOUNG
MAN'S MUSIC AND MR JABLONSKI PLAYS THEM WITH A DAZZLING PANACHE

VIRGIN CLASSICS IS PROMOTING ANOTHER SCANDINAVIAN HEARTTHROB LEIF OVE
ANDSNES A NORWEGIAN PIANIST BORN IN 1970 MR ANDSNES FIRST CAME TO PUBLIC
ATTENTION WITH A BEAUTIFULLY PLAYED RECORDING OF THE GRIEG CONCERTO MADE
WHEN HE WAS 20 HE HAS GONE ON TO RECORD HIGHLY SATISFYING ACCOUNTS OF
CHOPIN AND JANACEK AND HAS A NEW DISK OF SOLO GRIEG PIANO MUSIC ON THE WAY
BEFITTING A PIANIST FROM GRIEG'S HOMETOWN OF BERGEN MR ANDSNES HAS A
BEGUILING GIFT FOR LYRICISM BUT ONE GROUNDED IN A FIRM RICH TONE

SONY'S YOUNG PIANIST STEFAN VLADAR IS A SERIOUSLOOKING CLEANCUT
AUSTRIAN BORN IN 1965 WHO HAS BEEN FEATURED IN SERIOUS CLEANCUT
PERFORMANCES OF STANDARD GERMAN AND AUSTRIAN REPERTOIRE INCLUDING A RECENT
STERLING IF SUPERFICIAL INTERPRETATION OF BEETHOVEN'S STUPENDOUS
DIABELLIVARIATIONS BUT NOW HE IS STARTING TO SHOW A LITTLE MORE FLAIR IN
HIS LATEST RECORDING A DISK OF WACKY OPERA FANTASIES MADE WITH WIND
SOLOISTS FROM THE ENSEMBLE WIENBERLIN THAT INCLUDES AN ARRANGEMENT OF SONGS
FROM PORGY AND BESS FOR BASSOON AND PIANO AND A PARADE OF HITS FROM
WAGNER'S RING ARRANGED FOR HORN AND PIANO

THE YOUNGEST PIANIST OF THE GROUP THE 21YEAROLD RUSSIAN EVGENY KISSIN IS
ALSO ITS BIGGEST STAR WITH RECORDINGS ON SEVERAL MAJOR LABELS HIS LATEST
THIS TIME ON SONY IS A SOLEMN GORGEOUSLY PLAYED PERFORMANCE OF THE
SCHUMANN PIANO CONCERTO ACCOMPANIED CONTROLLED BY THE VIENNA
PHILHARMONIC UNDER THE MAGISTERIAL CARLO MARIA GIULINI IF THE OTHER YOUNG
TURKS LACK MATURITY MR KISSIN'S PROBLEM IS JUST THE OPPOSITE THIS
IMMENSELY TALENTED PIANIST NEEDS TO SHOW A LITTLE YOUTHFUL INDEPENDENCE

IN SOME WAYS EVEN MORE ENCOURAGING THAN A CROP OF PROMISING YOUNG PIANISTS
IS A CROP OF PIANISTS IN THEIR 40S WHO ARE ACTUALLY LIVING UP TO THEIR EARLY
PROMISE TWO SUCH PIANISTS BEGAN BY MAKING THEIR NAMES IN NEW MUSIC AND ARE
NOW BRANCHING OUT AT LEAST ON DISK URSULA OPPENS LONG A FAVORED PROPONENT
OF MODERN AMERICAN MUSIC RANGING FROM CEREBRAL CARTER TO POPULIST RZEWSKI 
BRINGS HER FEROCIOUS TECHNIQUE AND COMPELLING INTENSITY TO BEAR ON
BEETHOVEN'S MOST DEMANDING SONATA THE HAMMERKLAVIER ON A MUSIC & ARTS
CD IT IS A STARTLING PERFORMANCE THAT THROUGH A PROFOUND SENSE OF RHYTHM
AND AN INSTINCT FOR ALL THAT IS MOST INTERESTING IN THE MUSIC EMPHASIZES
JUST WHAT A REVOLUTIONARY COMPOSER BEETHOVEN WAS EVEN THE RECORDED SOUND IS
UNUSUALLY POWERFUL ALTHOUGH STRONG SPEAKERS ARE NEEDED TO CAPTURE ITS
MAGNITUDE

ON ANY SOUND SYSTEM THE BRITISH PIANIST PAUL CROSSLEY'S EFFORTS ON BEHALF
OF CONTEMPORARY EUROPEAN MUSIC SHOW HIS FEELING FOR TONAL COLOR AND HIS
ABILITY TO MAKE EVEN THE MOST COLORLESS COMPLEX SCORES VIBRANT NOW HE
IMBUES DEBUSSY WITH HUES AS INTENSE AS MATISSE IN THE FIRST TWO VOLUMES OF
WHAT WILL BE A FOURDISK SET OF THE COMPOSER'S COMPLETE SOLO PIANO WORKS ON
SONY INCLUDED HERE ARE THE TWO BOOKS OF PRELUDES ALONG WITH SOME
MISCELLANEOUS PIECES THAT SOUND CLEANSED OF YEARS OF INTERPRETIVE GRIME
UNDER MR CROSSLEY'S LUMINOUS FINGERS AND IN SONY'S PARTICULARLY VIVID
SOUND

FEW MODERN PIANISTS HAVE HAD THE HYSTERICAL HYPE THAT VLADIMIR FELTSMAN GOT
IN HIS 15 MINUTES OF FAME IN 1987 WHEN HE EMIGRATED FROM RUSSIA AND HE HAS
BEEN STRUGGLING TO LIVE UP TO IT EVER SINCE HE MADE A SERIES OF RECORDS FOR
CBS NOW SONY BUT THEY EXPOSED A PIANIST WITH PERHAPS JUST A LITTLE MORE
FLASH THAN SUBSTANCE AND HE WAS EVENTUALLY DROPPED FROM THE LABEL NOW ON
THE MORE MODEST MUSICMASTERS MR FELTSMAN IS TRYING TO PROVE THAT HIS
PLAYING REALLY DOES HAVE PROFUNDITY BY RECORDING SOME OF THE MEATIEST MUSIC
IN THE REPERTOIRE THE LAST THREE BEETHOVEN SONATAS AND BACH'S GOLDBERG
VARIATIONS WHILE NOT NOTABLY ORIGINAL MR FELTSMAN'S PERFORMANCES ARE
PIANISTICALLY SPECTACULAR AND DO IN FACT PLUMB THE DEPTHS OF THESE PIECES
LETTING IMPORTANT MUSIC SPEAK VERY WELL FOR ITSELF

BUT MR FELTSMAN IN HIS COMBINATION OF TECHNICAL VIRTUOSITY AND STRUCTURAL
CLARITY CANNOT BUT REMIND LISTENERS OF GLENN GOULD AND HIS FAMOUS
GOLDBERG RECORDINGS INDEED HE MENTIONS THEIR INFLUENCE ON HIM IN HIS
LINER NOTES IT IS GOULD AND NOT THE LEGENDARY MASTERS WHO REALLY SET THE
STYLE FOR THE SPARKLING CLEAR PIANISM OF OUR OWN AGE HIS DEATH 10 YEARS
AGO IN FACT ENDED NOTHING HIS IMPACT JUST KEEPS GROWING

AND THAT INFLUENCE IS LIKELY TO INCREASE EVEN MORE WITH THE SONY RELEASE ON
SIX LASER DISKS OR 12 VHS TAPES OF EXCERPTS FROM GOULD'S APPEARANCES ON
CANADIAN TELEVISION ALONG WITH PERFORMANCES THESE INCLUDE INTERVIEWS WITH
GOULD AND SOME RARE EXAMPLES OF HIM CONDUCTING THEY ARE THE MOST VIVID
EXAMPLES YET OF THE DISTINCTIVENESS OF HIS PLAYING AND PERSONALITY AND THEY
SET THE STANDARDS AGAINST WHICH WE NOW MEASURE OUR OWN GENERATION OF
PIANISTS 9307140066 930714 BUSINESS BRIEF PIONEERSTANDARD ELECTRONICS
INC COMPANY SAYS PROFIT ROSE 42 IN FISCAL FIRST QUARTER

PIONEERSTANDARD ELECTRONICS INC CITING STRONG DEMAND FOR ELECTRONIC PARTS
AND MARKET SHARE GAINS SAID IT EXPECTS TO REPORT THAT FISCAL FIRSTQUARTER
EARNINGS ROSE 42 TO 44 MILLION OR 44 CENTS A SHARE

THE CLEVELAND DISTRIBUTOR OF ELECTRONIC PARTS AND COMPUTER PRODUCTS ALSO
SAID IT EXPECTS TO REPORT RECORD SALES OF 1345 MILLION FOR THE QUARTER
ENDED JUNE 30 UP 31 FROM 1023 MILLION A YEAR EARLIER THE COMPANY EARNED
31 MILLION OR 33 CENTS A SHARE A YEAR EARLIER

OUR EXPANSION IN THE IMPORTANT CALIFORNIA MARKET IS CONTRIBUTING
SIGNIFICANTLY TO OUR INCREASES IN MARKET SHARE PRESTON HELLER JR
CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT

STILL WHILE SAYING HE EXPECTS CONTINUED GROWTH MR HELLER CAUTIONED
AGAINST EXTRAPOLATING PIONEERSTANDARD'S RECENT SALES AND EARNINGS GROWTH
RATES INTO THE FUTURE HE SAID THAT WE ARE CONFIDENT THAT THIS YEAR'S
SEPTEMBER QUARTER'S NET WILL BE WELL ABOVE LAST YEAR'S 9307140065 930714
ECONOMY MORE PRESSURE IS EXPECTED FOR LENDERS TO REQUIRE FLOOD
INSURANCE ON HOMES  BY GREG STEINMETZ STAFF REPORTER OF THE WALL
STREET JOURNAL

THE MIDWESTERN FLOODING IS EXPECTED TO PUT MORE PRESSURE ON LENDERS TO
REQUIRE HOMEOWNERS IN VULNERABLE AREAS TO HAVE FLOOD INSURANCE

FEWER THAN ONE OF EVERY FIVE HOMEOWNERS WHO LIVE IN A FLOOD PLAIN HAVE THE
INSURANCE DESPITE A 1973 LAW THAT FORBIDS LENDERS FROM MAKING LOANS TO
UNINSURED HOMEOWNERS HOMEOWNERS' INSURANCE POLICIES SOLD BY INSURANCE
COMPANIES GENERALLY DON'T COVER FLOODING AND THE LAW WAS SUPPOSED TO BOOST
PARTICIPATION IN THE FEDERAL PROGRAM CREATED TO FILL THE VOID

THE LACK OF CONSUMER PARTICIPATION IN THE FEDERAL FLOODINSURANCE PROGRAM
HAS BEEN A FOCUS OF A HOUSE SUBCOMMITTEE HEADED BY REP JOSEPH KENNEDY D
MASS HE AND OTHERS ARGUE THAT THE PROGRAM CAN'T ADEQUATELY SPREAD ITS
RISKS AND BE FINANCIALLY VIABLE OVER THE LONGTERM UNLESS MORE
HOMEOWNERS BUY COVERAGE THE PROGRAM REQUIRED TAXPAYER BAILOUTS IN THE EARLY
1980S

CONSUMERS SHUN FLOOD INSURANCE BECAUSE IT IS EXPENSIVE ABOUT 320 A YEAR
WHICH FOR MANY HOMEOWNERS IS MORE COSTLY THAN THE TRADITIONAL FIREINSURANCE
POLICY THE LAW FORCING LENDERS TO MAKE HOMEOWNERS BUY FLOOD COVERAGE WAS
SUPPOSED TO INCREASE PARTICIPATION IN THE PROGRAM BUT IT HASN'T WORKED AS
PLANNED

ONE REASON IS THAT BANKS AND THEIR REGULATORS DON'T ALWAYS ENFORCE THE
RULES ACCORDING TO REP KENNEDY AND THE AGENCY THAT RUNS THE FLOOD PROGRAM
THERE IS SOME QUESTION ABOUT THE LEVEL OF COMPLIANCE SAID JAMES TAYLOR
ASSISTANT ADMINISTRATOR OF THE FEDERAL INSURANCE ADMINISTRATION WHICH
MANAGES THE NATIONAL FLOOD INSURANCE PROGRAM

A SPOKESMAN FOR THE FEDERAL DEPOSIT INSURANCE CORP DENIES THE AGENCY HAS
BEEN LAX ON ENFORCEMENT HE SAID THE FDIC AS PART OF ITS ROUTINE BANK
EXAMINATIONS CHECKS WHETHER BANKS ARE FOLLOWING FLOODINSURANCE RULES
BANKERS ALSO SAY THEY'RE FOLLOWING THE RULES WE BELIEVE THE LENDERS ARE
DOING THE BEST THEY CAN SAID A SPOKESMAN FOR THE AMERICAN BANKERS
ASSOCIATION HE NOTED THAT MANY LOANS ARE SOLD AFTER A BANK ORIGINATES THEM
AND THE RESPONSIBILITY FOR REQUIRING FLOOD INSURANCE PASSES TO WHATEVER
INSTITUTION BUYS THE LOAN

ANOTHER REASON FOR THE FLOOD PROGRAM'S POOR PARTICIPATION IS THAT THE LAW
DOESN'T APPLY TO MORTGAGE BANKS WHICH ORIGINATE ABOUT HALF OF ALL
MORTGAGES A BILL NOW BEFORE REP KENNEDY'S SUBCOMMITTEE WOULD EXTEND THE
LAW TO THESE INSTITUTIONS

INSURANCE COMPANIES EXCLUDE FLOOD COVERAGE FROM HOMEOWNERS' POLICIES BECAUSE
THEY BELIEVE IT'S TOO RISKY ABOUT 26 OF HOMES LOCATED IN A FLOOD PLAIN
WILL EXPERIENCE FLOOD DAMAGE OVER THE COURSE OF A 30YEAR MORTGAGE COMPARED
WITH THE 1 THAT WILL EXPERIENCE A FIRE ACCORDING TO THE INSURANCE
INFORMATION INSTITUTE

THE GOVERNMENT HAS BEEN WRITING FLOOD INSURANCE SINCE 1968 AND THE LACK OF
PARTICIPATION HAS BEEN A CONCERN FROM THE BEGINNING FEWER THAN TWO MILLION
HOMES AND BUILDINGS SITUATED IN FLOOD ZONES ABOUT 17 OF THE TOTAL ARE
COVERED BY FLOOD INSURANCE

REP KENNEDY HELD HEARINGS ON THE FLOODINSURANCE PROGRAM THREE WEEKS AGO
AND A BILL TO REVISE THE PROGRAM IS EXPECTED TO COME OUT OF HIS SUBCOMMITTEE
SOMETIME THIS YEAR ALTHOUGH THE PROGRAM IS FINANCIALLY STRONG ENOUGH TO
SURVIVE THE MIDWESTERN FLOODING WITHOUT THE NEED FOR TAXPAYER INVOLVEMENT
REP KENNEDY ARGUES THAT THE DISASTER HIGHLIGHTS THE NEED TO CHANGE IT

THE PROGRAM HAS 150 MILLION IN CASH TO PAY CLAIMS BUT IS RUNNING AN 18
MILLION DEFICIT WHEN ALL ITS OBLIGATIONS ARE TAKEN INTO ACCOUNT THE FUND
WAS SUBSTANTIALLY STRONGER BEFORE LAST YEAR'S HURRICANE ANDREW AND THE MARCH
BLIZZARD ALONG THE EAST COAST

THE LAW REQUIRING LENDERS TO MAKE HOMEBUYERS BUY FLOOD INSURANCE COULD
BECOME AN ISSUE FOR MIDWESTERN HOMEOWNERS FOR ANOTHER REASON IN THE PAST
SOME PEOPLE WHO LOST THEIR HOMES TO FLOODS FILED LAWSUITS AGAINST BANKS FOR
NOT HAVING FORCED THEM TO BUY FLOOD INSURANCE SAID ROBERT HUNTER A
CONSUMER ADVOCATE WHO ONCE RAN THE FEDERAL FLOODINSURANCE PROGRAM THE
WATERS NOW DRENCHING THE MIDWEST COULD BRING MORE SUITS HE SAID IT'S
LIKELY TO HAPPEN AGAIN HE SAID

A SPOKESMAN FOR THE MORTGAGE BANKERS ASSOCIATION SAID THE ISSUE CUTS BOTH
WAYS HE SAID LENDERS HAVE ALSO BEEN SUED FOR REQUIRING FLOOD INSURANCE IN
INSTANCES WHEN THE PROPERTY OWNER BELIEVED IT WAS UNNECESSARY 9307140064
930714 BUSINESS BRIEF LDDS COMMUNICATIONS INC UNIT WILL PAY 72
MILLION TO SETTLE FLORIDA CHARGES

AN LDDS COMMUNICATIONS INC UNIT AGREED TO PAY 72 MILLION TO SETTLE
ALLEGATIONS THAT THE COMPANY OVERCHARGED FLORIDA CUSTOMERS FOR LONGDISTANCE
TELEPHONE SERVICES

ATC LONG DISTANCE INC FORMERLY KNOWN AS ADVANCED TELECOMMUNICATIONS CORP
HAD BEEN ACCUSED OF CHARGING CUSTOMERS FOR AS MUCH AS 12 SECONDS OF
NONCONVERSATION TIME PER CALL FROM JUNE 1990 TO JUNE 1991 THOSE BILLING
PRACTICES LED TO APPROXIMATELY 28 MILLION IN OVERCHARGES ACCORDING TO THE
FLORIDA ATTORNEY GENERAL'S OFFICE WHICH CONDUCTED THE INVESTIGATION

WITHOUT ADMITTING ANY WRONGDOING ATC AGREED TO PAY 62 MILLION TO AFFECTED
CUSTOMERS AND 1 MILLION TO FLORIDA TO COVER THE COSTS OF THE ATTORNEY
GENERAL'S INVESTIGATION

AFFECTED CUSTOMERS WILL RECEIVE REFUND CHECKS BASED ON THE NUMBER OF MONTHS
THEY WERE ATC CUSTOMERS DURING THE YEAR IN QUESTION THE COMPANY SAID

ADVANCED TELECOMMUNICATIONS CORP AND LDDS COMPLETED A MERGER IN DECEMBER
1991 LDDS COMMUNICATIONS A LONGDISTANCE COMPANY BASED IN JACKSON MISS
SAID THAT IT FULLY ACCRUED FOR THE SETTLEMENT IN FISCAL 1992 AND THAT THE
PAYMENTS WILL HAVE NO EFFECT ON FUTURE EARNINGS 9307140063 930714 OTC
FOCUS INDEX RISES 080 NEARING ITS RECORD AS SMALL STOCKS HELP TO
BOOST MARKET  BY SARA CALIAN STAFF REPORTER OF THE WALL STREET
JOURNAL

NEW YORK THE OVERTHECOUNTER MARKET CLIMBED TO WITHIN A HAIR'S BREADTH
OF A RECORD

THE NASDAQ COMPOSITE INDEX ROSE 080 OR 011 TO 70847 JUST SHY OF ITS
RECORD OF 70885 ADVANCING ISSUES OUTNUMBERED DECLINERS 1401 TO 1343 ON
TOTAL VOLUME OF 2565 MILLION SHARES UP FROM MONDAY'S 2025 MILLION

OVERALL STRENGTH IN SMALL STOCKS BOOSTED THE NASDAQ MARKET EVEN THOUGH
SEVERAL LARGE NASDAQ STOCKS DRAGGED DOWN THE INDEX THE NASDAQ 100 INDEX A
MEASUREMENT OF THE LARGEST NONFINANCIAL ISSUES FELL 178 TO 72396

ONE OF THE DAY'S MOST ACTIVE STOCKS LEGENT PLUMMETED 10 1/8 OR 36 TO 17
3/4 ON 94 MILLION SHARES MORE THAN 15 TIMES ITS NORMAL VOLUME AFTER THE
MARKET CLOSED ON MONDAY THE VIENNA VA SOFTWARE MAKER SAID THIRDQUARTER
RESULTS WILL BE DISAPPOINTING THE COMPANY SAID A LACK OF CLARITY OF
LEGENT'S MARKETING MESSAGE IS IMPACTING OUR SALES RESULTS

MANY ANALYSTS LOWERED THEIR INVESTMENT RATINGS AND CUT ESTIMATES SAYING
THAT THE TRADITIONALLY MAINFRAMEORIENTED SOFTWARE COMPANY NEEDS TO FIT INTO
A LANDSCAPE CHANGING TOWARD NETWORKED COMPUTING LEGENT SAID IT EXPECTED
THIRDQUARTER EARNINGS TO TOTAL 26 CENTS A SHARE OR ABOUT HALF OF WHAT THE
STREET HAD EXPECTED A YEAR EARLIER LEGENT EARNED 38 CENTS A SHARE ALEX
BROWN DOWNGRADED THE STOCK TO NEUTRAL FROM BUY AND CUT ITS FISCAL 1993
EARNINGS ESTIMATE TO 176 A SHARE FROM 235

RAY HIRSCH OF IDS FINANCIAL SERVICES IN MINNEAPOLIS SAID HE STILL OWNS ONLY
A SMALL AMOUNT OF THE STOCK AND HAD SOLD MOST OF IT BEFORE THE DISASTER
HIT HE SAID MANAGEMENT HAD DIRECTED THE SALES FORCE TO BRING IN LARGE
DEALS BUT THEY NEVER CAME THROUGH THEY NEED TO DO A LOT OF REORGANIZING
MR HIRSCH SAID

ON ITS DEBUT CELESTIAL SEASONINGS SURGED 9 1/4 TO 29 1/4 THE MAKER OF
HERB TEAS OFFERED 19 MILLION SHARES AT 20 THROUGH UNDERWRITERS LED BY
PAINEWEBBER

INTEL DROPPED 1 1/8 TO 54 1/2 COWEN & CO LOWERED ITS NEARTERM INVESTMENT
RATING TO NEUTRAL FROM BUY ON MONDAY INTEL FELL 3/8 AFTER REPORTING
SECONDQUARTER EARNINGS THAT MATCHED BUT DIDN'T BEAT WALL STREET'S
EXPECTATIONS

APPLE COMPUTER DROPPED 3/4 TO 37 1/4 MICROSOFT FELL 1 TO 82 3/4 AND NOVELL
SLID 3/4 TO 25 1/4

BUT SHARES OF LOTUS DEVELOPMENT IN CAMBRIDGE MASS GAINED 2 1/8 TO 36 1/2
GOLDMAN SACHS PREDICTED THE STOCK COULD CLIMB 16 IN THE NEXT COUPLE OF
QUARTERS AND OTHER ANALYSTS REPORTED HEALTHY DEMAND FOR THE SOFTWARE MAKER'S
NEW 123 FOR WINDOWS SPREADSHEET

SYQUEST LEAPED 1 3/4 TO 11 1/2 THE FREMONT CALIF COMPANY HAS BEEN
SELECTED TO SUPPLY A HARD CARTRIDGE DRIVE FOR ELECTRONIC DATA SYSTEMS' SMALL
MULTIUSER COMPUTER PACT WHICH HAS A POTENTIAL VALUE OF 710 MILLION

BOTH THE NASDAQ INSURANCE AND UTILITY INDEXES BROKE THEIR PREVIOUS RECORDS
THE INSURANCE INDEX GAINED 475 POINTS OR 055 TO 87096 ABOVE ITS OLD
HIGH OF 86821 SET FEB 11 AMONG ITS COMPONENTS OHIO CASUALTY IMPROVED 1
TO 64 1/4 AND UNITED WISCONSIN INCREASED 1 3/4 TO 26 3/4

THE UTILITY INDEX ADDED 161 POINTS OR 018 TO CLOSE AT 93352 BREAKING
ITS RECORD OF 93191 SET MONDAY COMMUNICATIONS ISSUES WERE PARTICULARLY
STRONG WITH LDDS COMMUNICATIONS ADVANCING 1 TO 37 1/2 ERICSSON MOVING UP 1
5/8 TO 45 5/8 AND COMCAST CORP GAINING 1 1/8 TO 23 7/8

NEWS THAT MEDCO CONTAINMENT SERVICES HAS BEEN ENGAGING IN STRATEGIC
DISCUSSIONS WITH SEVERAL PHARMACEUTICAL COMPANIES SENT ITS STOCK UP 1 3/8 TO
30 1/8 ON VOLUME OF ABOUT 54 MILLION SHARES ABOUT THREE TIMES THE AVERAGE
THE MONTVALE NJ CONCERN SAID THE TALKS COVERED POSSIBILITIES SUCH AS
STRATEGIC RELATIONSHIPS PARTNERSHIPS JOINT VENTURES AND A BUSINESS
COMBINATION BUT THE COMPANY POINTED OUT THAT THIS IS NOT THE FIRST TIME
THESE TYPES OF DISCUSSIONS HAVE OCCURRED

THE WALL STREET JOURNAL REPORTED YESTERDAY THAT PEOPLE CLOSE TO THE
COMPANIES SAY MERCK HAS HELD TALKS ABOUT ACQUIRING MEDCO IN A DEAL VALUED AT
MORE THAN 45 BILLION NEITHER COMPANY WOULD COMMENT OFFICIALLY ON THE
REPORT MERCK ENDED UNCHANGED AT 34 1/2 ON THE NEW YORK STOCK EXCHANGE

ADAC LABORATORIES ADDED 1 3/4 TO 14 3/4 FOLLOWING A GOOD FISCAL
THIRDQUARTER OUTLOOK THE MILPITAS CALIF ELECTRONIC MEDICAL IMAGING AND
INFORMATION SYSTEMS MAKER SAID IT EXPECTS TO REPORT NET INCOME OF 28 CENTS A
SHARE COMPARED WITH THE 21 CENTS EARNED A YEAR EARLIER ADJUSTED FOR A
1FOR3 STOCK SPLIT

CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9307140062 930714 BUSINESS
BRIEF CARPENTER TECHNOLOGY CORP CHARGE ACCOUNTING CHANGE TO LEAD
TO FISCAL 1993 LOSS

CARPENTER TECHNOLOGY CORP SAID IT WILL TAKE A ONETIME NONCASH CHARGE OF
75 MILLION OR 932 A SHARE TO ADOPT NEW ACCOUNTING STANDARDS FOR RETIREE
HEALTH BENEFITS AND INCOME TAXES

THE AFTERTAX CHARGE IS RETROACTIVE TO JULY 1 1992 THE BEGINNING OF THE
COMPANY'S FISCAL YEAR THE READING PA MAKER OF SPECIALTY STEEL PRODUCTS
ALSO SAID THE ACCOUNTING CHANGES WILL REDUCE RESULTS FOR FISCAL 1993 ON AN
ONGOING BASIS BY 64 MILLION OR 80 CENTS A SHARE IN THE NINE MONTHS ENDED
MARCH 31 CARPENTER EARNED 193 MILLION OR 225 A SHARE

THE COMBINATION OF THE ONETIME CHARGE AND THE ONGOING IMPACT OF THE CHANGES
THIS YEAR WILL RESULT IN A TOTAL CHARGE OF 814 MILLION OR 1012 A SHARE
IN FISCAL 1993 CAUSING A LOSS FOR THE COMPANY IN THE YEAR ENDED JUNE 30
1992 CARPENTER EARNED 136 MILLION OR 148 A SHARE

CARPENTER EXPECTS TO REPORT EARNINGS LATE THIS MONTH 9307140061 930714
BUSINESS BRIEF INTERNATIONAL PAPER CO NET FELL 31 IN 2ND PERIOD 
WITH SALES GROWTH OF 3

INTERNATIONAL PAPER CO'S NET INCOME FELL 31 IN THE SECOND QUARTER FROM A
YEAR EARLIER BECAUSE OF SLOW DOMESTIC GROWTH AND WEAK OVERSEAS MARKETS

THE PAPER PRODUCER IN PURCHASE NY POSTED SECONDQUARTER NET OF 77
MILLION OR 62 CENTS A SHARE COMPARED WITH 112 MILLION OR 92 CENTS A
SHARE A YEAR EARLIER SALES FOR THE QUARTER WERE 35 BILLION UP 3 FROM
34 BILLION A YEARAGO

OPERATING EARNINGS BEFORE INTEREST CHARGES WERE DOWN ABOUT 10 FROM A YEAR
EARLIER BUT UP 15 FROM THE FIRST QUARTER IN ADDITION INTEREST COSTS WERE
HIGHER IN THE 1993 SECOND QUARTER THAN A YEAR EARLIER WHEN RESULTS
REFLECTED TAXRELATED INTEREST INCOME AND HIGHER CAPITALIZED INTEREST
BECAUSE OF TWO MAJOR EUROPEAN CAPITAL PROJECTS THAT NOW ARE COMPLETED

NET INCOME FOR THE SIX MONTHS WAS 141 MILLION OR 114 A SHARE DOWN 14
FROM 164 MILLION OR 136 A SHARE A YEAR EARLIER SALES FOR THE SIX
MONTHS WERE 69 BILLION UP 3 FROM THE YEAREARLIER PERIOD 9307140060
930714 BUSINESS BRIEF HONEYWELL INC CUTS IN UNIT'S WORK FORCE IS
PLANNED BY YEAR'S END

HONEYWELL INC MINNEAPOLIS SAID ITS INDUSTRIAL AUTOMATION AND CONTROL
DIVISION PLANS TO CUT ABOUT 250 EMPLOYEES FROM ITS WORK FORCE BY YEAR'S END

THE MAKER OF CONTROL EQUIPMENT SAID THE MOVE IS NECESSARY BECAUSE THE
EUROPEAN ECONOMY HAS WORSENED WHILE US MARKET GROWTH HAS NOT BEEN AS
RAPID AS EXPECTED AT THE UNIT

IN ADDITION TO THE STAFFING CUTBACKS HONEYWELL WHICH HAS ABOUT 55000
EMPLOYEES WORLDWIDE SAID COSTCUTTING MEASURES AT THE INDUSTRIAL
AUTOMATION AND CONTROL UNIT WILL INCLUDE A REEVALUATION OF ALL POSITIONS
WITHIN THE BUSINESS AND REASSIGNMENT OF PERSONNEL TO MEET BUSINESS
PRIORITIES ALONG WITH BUDGET CUTS

A SPOKESMAN WASN'T ABLE TO IMMEDIATELY SAY WHETHER THE WORK FORCE REDUCTION
WILL REQUIRE A SPECIAL CHARGE TO EARNINGS 9307140059 930714 FOREIGN
EXCHANGE DOLLAR DROPS ACROSS BOARD IN EUROPE ON PROFITTAKING PRICE
DATA IN US  BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL

NEW YORK THE DOLLAR FELL BACK TUESDAY HIT BY PROFITTAKING ON MONDAY'S
GAINS AGAINST EUROPEAN CURRENCIES AND BY NEWS OF A FALL IN US JUNE
PRODUCER PRICES

MEANWHILE STERLING SURGED ON AN UNEXPECTED JUMP IN BRITISH INDUSTRIAL
PRODUCTION FOR MAY

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17185 MARKS DOWN FROM 17305
MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT
10802 YEN DOWN FROM 10940 YEN STERLING WAS TRADING AT 14980 UP FROM
14770

ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10787 YEN AND AT
17205 MARKS

THE DOLLAR BEGAN ITS DECLINE IN EARLY EUROPEAN TRADING WHEN A BREAK IN
PRESSURES IN THE EUROPEAN MONETARY SYSTEM OR EMS ALLOWED INVESTORS TO TAKE
PROFITS ON DOLLARS THEY HAD BOUGHT EARLIER AT LOWER LEVELS ON MONDAY THE
DOLLAR WAS BID UP AS INVESTORS SOUGHT A HAVEN FROM THE EUROPEAN TURMOIL

ALSO WEIGHING ON THE US CURRENCY TUESDAY WAS NEWS OF A 03 DECLINE IN THE
US PRODUCER PRICE INDEX OR PPI IN JUNE FROM MAY TRADERS SAID THAT
DECLINE ENDED SPECULATION THAT THE FEDERAL RESERVE MIGHT HAVE TO FIGHT
INFLATION BY RAISING INTEREST RATES SOON HIGHER INTEREST RATES MAKE A
CURRENCY MORE ATTRACTIVE BY INCREASING THE RETURN ON DEPOSITS IN THAT
CURRENCY

THE DOLLAR HAD BEEN BOUGHT UP ON SPECULATION OF POSSIBLY HIGHER US RATES
AND LOWER EUROPEAN RATES SAID HUGH J WALSH ASSISTANT VICE PRESIDENT AND
FOREIGNEXCHANGE TRADER AT ABNAMRO BANK IN NEW YORK NOW WE'VE TAKEN
HIGHER US RATES OUT OF THE FORMULA

LOWER EUROPEAN RATES HOWEVER ARE STILL WIDELY EXPECTED ALTHOUGH THE
TIMETABLE IS UNCERTAIN GERMAN RATES ARE STILL THE KEY TRADERS SAY ON
TUESDAY GERMANY'S CENTRAL BANK ANNOUNCED THAT ITS WEEKLY REPURCHASE RATE
AUCTION ITS MAIN INSTRUMENT FOR INFLUENCING THE DOMESTIC MONEY MARKET
WOULD BE AT VARIABLE RATES

SOME PLAYERS HAD HOPED THAT THE BUNDESBANK WOULD ANNOUNCE A FIXEDRATE REPO
AUCTION AT BELOW LAST WEEK'S 73 RATE IN A BID TO HELP THE AILING FRENCH
FRANC THE FRANC HAS BEEN SOLD LOWER BY SPECULATORS WHO BELIEVE THAT FRANCE
WILL NEED TO FUEL ITS DISMAL ECONOMY SOON BY CUTTING INTEREST RATES

THE VARIABLERATE AUCTION SUGGESTED TO SOME TRADERS THE USGERMAN INTEREST
RATE DIFFERENTIAL ISN'T ABOUT TO CHANGE IMMEDIATELY AS A RESULT THE US
CURRENCY DECLINED PERCEPTIBLY AFTER THE ANNOUNCEMENT

THE MARKET WAS A LITTLE DISAPPOINTED THE BUNDESBANK DIDN'T COME OUT WITH A
LOWER FIXED RATE SAID RICK SNYDER A CORPORATE FOREIGNEXCHANGE TRADER AT
NATWEST USA A LOWER FIXED RATE WOULD HAVE GIVEN US A BETTER FEEL FOR WHEN
A RATE CUT MIGHT COME

NEVERTHELESS IT'S STILL POSSIBLE THAT THE BUNDESBANK WILL ACCEPT THE
VARIABLERATE REPOS AT RATES BELOW LAST WEEK'S 73 RESULTS ARE DUE TODAY
A SLIM CHANCE ALSO IS SEEN THAT THE BANK COULD CUT ITS LOMBARD AND DISCOUNT
RATES AT A REGULARLY SCHEDULED POLICY MEETING THURSDAY

THE FRANC MEANWHILE STABILIZED TUESDAY AHEAD OF THE REPO AUCTION RESULTS
THE MARK ENDED TRADING IN NEW YORK AT 34154 FRANCS UP A BIT FROM 34141
FRANCS MONDAY TRADERS SAID SOME MARKET PARTICIPANTS WERE SQUARING THEIR
BOOKS ON THE FRANC AHEAD OF A HOLIDAY IN FRANCE TODAY 9307140058 930714
ECONOMY JOB GROWTH IS SEEN SLOWING IN SECOND HALF  CONFERENCE
BOARD PREDICTS BUSINESSES WILL STILL FEEL PRESSURE TO TRIM STAFFS 
 BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL

THE COUNTRY'S MEAGER JOB GROWTH IN THE FIRST HALF WILL CONTINUE AT AN EVEN
SLOWER PACE FOR THE REST OF YEAR AS MORE COMPANIES CUT STAFF THE CONFERENCE
BOARD PREDICTS

THE PRESSURE TO CONTAIN COSTS IS PREVALENT DESPITE RECENT SIGNS THAT THE
WORLDWIDE ECONOMY IS PICKING UP GAIL FOSLER THE BOARD'S CHIEF ECONOMIST
SAID AT A NEWS CONFERENCE

THE LEADING INDICATORS SUGGEST AN UPTURN IN JAPAN AND AN INCIPIENT UPTURN
IN EUROPE EXCEPT FOR GERMANY SHE SAID BUT BECAUSE INTERNATIONAL
COMPETITION WILL REMAIN INTENSE AMID WEAK DEMAND SHE SAID VIRTUALLY ALL
US INDUSTRIES WILL REMAIN UNDER PRICE PRESSURE

THE POSITIVE EFFECT OF THAT PRESSURE IS THAT A RISE IN SHORTTERM INTEREST
RATES ISN'T LIKELY OVER THE NEXT 12 MONTHS AND LONGTERM RATES COULD DECLINE
FURTHER SHE ADDED MOREOVER HER READING OF ECONOMIC FIGURES AND ANECDOTAL
EVIDENCE FROM CORPORATE MEMBERS OF THE CONFERENCE BOARD INDICATE THAT THE
TALK ABOUT AN INCREASE IN INFLATION IS ABSOLUTELY CRAZY

THE SPATE OF RECENT JOB CUT ANNOUNCEMENTS ALSO SUGGESTS THAT BUSINESS
EXECUTIVES ARE NOT EXPECTING ROBUST GROWTH IN JUNE BIG COMPANIES ANNOUNCED
38669 LAYOFFS COMPARED WITH 14086 IN MAY ACCORDING TO THE CHALLENGER
EMPLOYMENT REPORT WHICH TRACKS CORPORATE ANNOUNCEMENTS AND FOR THE FIRST
TWO WEEKS OF JULY ISI GROUP AN ECONOMIC CONSULTING FIRM COUNTED 23 LAYOFF
ANNOUNCEMENTS MORE THAN TWICE AS MANY AS A YEAR EARLIER

MS FOSLER'S DOUR FORECAST OF JOB GROWTH IN WHICH SHE SEES THE RATE
SLIPPING TO LESS THAN 1 FOR THE REST OF THE YEAR STEMMED IN PART FROM
YESTERDAY'S RELEASE OF RESULTS OF THE CONFERENCE BOARD'S SURVEY ON
DOWNSIZING IT SHOWED THAT MANY LARGE CORPORATIONS SAY THEY STILL HAVE SOME
FAT TO CUT OUT NOTED HELEN AXEL AUTHOR OF THE REPORT

NEGATIVE SIDE EFFECTS OF THE CONTINUED SLASHING OF JOBS INCLUDE POOR MORALE
AMONG REMAINING WORKERS AND A SLOWDOWN IN AFFIRMATIVEACTION AND ETHNIC
DIVERSITY PROGRAMS SHE ADDED MS AXEL AND MS FOSLER BOTH SAID THE
INCREASING GLOBALIZATION OF THE ECONOMY WILL INTENSIFY PRESSURE ON COMPANIES
TO INCREASE PRODUCTIVITY BY KEEPING STAFFS LEAN

THE WEAK US ECONOMY IN THE FIRST HALF ESPECIALLY IN THE SECOND QUARTER
SHOULD HAVE KEPT JOB GROWTH EVEN SLOWER THAN IT WAS SAID MS FOSLER JOBS
GOT OUT AHEAD OF THE ECONOMY SHE SAID WHILE SHE IS PREDICTING A SLIGHT
ACCELERATION IN ECONOMIC GROWTH SHE EXPECTS COMPANIES WILL TAKE A MORE
CAUTIOUS STANCE ON HIRING

IRONICALLY IN THE MANUFACTURING SECTOR THE AVERAGE WORK WEEK IS AT A
25YEAR HIGH OF ABOUT 41 HOURS REMINISCENT OF DAYS WHEN UNEMPLOYMENT WAS
BELOW 5 SAID DAVID WYSS HEAD OF RESEARCH AT DRI MCGRAW HILL HOWEVER
MANUFACTURERS HAVE CUT MORE THAN 150000 JOBS IN RECENT MONTHS THE
DISCREPANCY STEMS FROM EMPLOYERS' TENDENCY TO INCREASE OVERTIME FOR
REMAINING WORKERS RATHER THAN INCREASING OR KEEPING STAFFING LEVELS

COMPANIES ARE NOT SURE RISING ORDERS ARE PERMANENT GIVEN THE CURRENT COST
OF FRINGE BENEFITS TIMEANDAHALF OVERTIME LOOKS CHEAP SAID MR WYSS HE
TOO EXPECTS CONTINUED LAYOFFS BECAUSE IT'S NOT LIKE THE EARLY 1980S WHEN
DOUBLEDIGIT INFLATION ALLOWED COMPANIES TO RAISE PRICES

EVEN THOUGH THE ECONOMY HAS ADDED A NET 800000 JOBS SO FAR THIS YEAR MR
WYSS SAID ONLY A FEW SECTORS ARE BENEFITING HEALTHCARE AND STATE AND LOCAL
EDUCATION HAVE ADDED 125 MILLION JOBS THIS YEAR HE NOTED TAKE THOSE AWAY
AND THERE WOULD BE FEWER JOBS TODAY THAN BEFORE THE RECOVERY BEGAN HE
SAID 9307140057 930714 GM TO HOLD PRICE RISES ON 94 MODELS TO 18 TO
TRY TO GAIN MARKET SHARE  BY DOUGLAS LAVIN AND ROBERT L SIMISON 
STAFF REPORTERS OF THE WALL STREET JOURNAL

DETROIT IN AN AGGRESSIVE ATTEMPT TO INCREASE SALES VOLUME GENERAL MOTORS
CORP SAID IT WILL HOLD PRICE INCREASES ON ITS 1994 VEHICLES TO AN AVERAGE
OF 18 WELL BELOW THE EXPECTED RATE OF INFLATION

THE PLAN TO KEEP INCREASES MODEST COMES AS GM HAS RACKED UP SIZABLE SALES
GAINS BY REDUCING PRICES ON SOME VEHICLES AND PACKAGING THEM WITH POPULAR
OPTIONS AT A DISCOUNT THAT STRATEGY KNOWN AS VALUE PRICING WILL BE
GREATLY EXPANDED DURING THE 1994 MODEL YEAR GM SAID

ROBERT W HENDRY A GM VICE PRESIDENT SAID ROUGHLY 15 OF GM'S MODELS WILL
BE OFFERED WITH THE DISCOUNTS AND OPTION PACKAGES ALTHOUGH GM OFFICIALS
WOULDN'T ELABORATE ONE SECURITIES ANALYST ESTIMATED SUCH PACKAGES WILL
COVER AS MUCH AS HALF OF GM'S SALES VOLUME

GM SUBSTANTIALLY JUMPED THE GUN ON ITS RIVALS IN ANNOUNCING PRICES FOR 1994
MODELS SUCH ANNOUNCEMENTS USUALLY COME IN AUGUST OR SEPTEMBER AND FORD
MOTOR CO AND CHRYSLER CORP SAID THEY AREN'T READY TO TALK ABOUT PRICING
FOR THE NEW MODEL YEAR GM EXPLAINED IT EXPECTS TO START SELLING SOME 1994
MODELS AS EARLY AS AUGUST INSTEAD OF WAITING UNTIL SEPTEMBER OR OCTOBER AS
USUAL BECAUSE SOME 1993 MODELS ARE ALREADY IN SHORT SUPPLY

GM'S ANNOUNCEMENT ALSO COMES AS ITS JAPANESE COMPETITORS ARE SIGNIFICANTLY
BOOSTING PRICES TO COMPENSATE FOR THE SOARING VALUE OF THE YEN RATHER THAN
TAKING ADVANTAGE OF THE JAPANESE PRICING UMBRELLA TO RAISE ITS OWN PRICES
THOUGH GM IS ATTEMPTING TO SEIZE MORE MARKET SHARE AND PROFIT FROM HIGHER
VOLUME

IN OUTLINING THE PRICING STRATEGY GM OFFICIALS EMPHASIZED THAT IN OFFERING
MORE MODELS WITH SET EQUIPMENT PACKAGES FOR A REDUCED PRICE GM WILL SAVE
MONEY BY SIMPLIFYING ITS DESIGN ENGINEERING PROCUREMENT SALES AND SERVICE
PROCESSES MOREOVER THE COMPANY IS BENEFITING FROM SWEEPING EFFORTS IN
RECENT YEARS TO CUT COSTS AND REDUCE THE LABOR REQUIRED TO BUILD ITS CARS

THIS APPARENTLY IS PAYING OFF ALREADY GM'S COST SAVINGS ARE A SIGNIFICANT
PART OF THE IMPROVED PROFITABILITY OF NORTH AMERICAN OPERATIONS WHICH
YOU'LL SEE IN A COUPLE OF WEEKS' TIME SAID J MICHAEL LOSH VICE PRESIDENT
FOR SALES SERVICE AND MARKETING IN NORTH AMERICA

HIS COMMENT WAS ONLY THE LATEST IN A SERIES OF HINTS THAT GM'S
SECONDQUARTER RESULTS WERE BETTER THAN EXPECTED BUT MR LOSH DECLINED TO
ELABORATE EXCEPT TO ACKNOWLEDGE THAT GM OFFICIALS ARE GENERALLY HAPPY WITH
ANALYSTS' ESTIMATES FOR THE SECOND QUARTER WALL STREET GENERALLY EXPECTS GM
TO REPORT SECONDQUARTER EARNINGS OF ROUGHLY 800 MILLION REVERSING A LOSS
OF 703 MILLION A YEAR AGO

ANALYSTS HAILED GM'S PRICING MOVES THIS IS BY FAR THE OPTIMAL STRATEGY TO
GAIN MARKET SHARE ON A RETAIL BASIS SAID SCOTT MERLIS AUTOINDUSTRY
ANALYST AT MORGAN STANLEY THIS WILL HELP THEM TO CONTINUE THE MOMENTUM OF
THE PAST TWO MONTHS DURING WHICH GM HAS GAINED MARKET SHARE AFTER A LONG
STRING OF DECLINES ADDED SMITH BARNEY'S WENDY NEEDHAM THEY WON'T BE
TAKING A HIT ON THE BOTTOM LINE BECAUSE EFFICIENCIES STEMMING FROM VOLUME
INCREASES WILL COMPENSATE FOR GM'S RELATIVELY LOW PRICES

WE EXPECT TO GET A SIGNIFICANT VOLUME INCREASE NEXT YEAR AS A RESULT OF
THE PRICING STRATEGY MR LOSH SAID ALTHOUGH HE DECLINED TO BE SPECIFIC
FOR 1993 GM STILL EXPECTS ITS TOTAL MARKET SHARE TO ABOUT MATCH LAST
YEAR'S ALTHOUGH IT IS CUTTING BACK ON LESSPROFITABLE SALES TO DAILYRENTAL
FLEETS AND EXPANDING ITS MOREPROFITABLE RETAIL SALES

GM'S SALES IN THE NEW MODEL YEAR ARE LIKELY TO BENEFIT FROM THE ADDITION OF
AIRBAGS TO MOST OF THE PRODUCT LINE CORRECTING A SERIOUS COMPETITIVE
DISADVANTAGE ANALYSTS SAY GM SAID DRIVERSIDE OR DUAL AIRBAGS WILL BE
STANDARD ON 29 OF ITS 33 PASSENGER CAR MODELS FOR THE 1994 MODEL YEAR IT IS
ADDING DRIVERSIDE AIR BAGS TO SIX MODELS AND PASSENGERSIDE BAGS TO 11
MODELS THAT ALREADY HAVE ONE AIR BAG

THOSE AND OTHER CHANGES TO MEET NEW SAFETY AND POLLUTION REQUIREMENTS ARE
REFLECTED IN PRICE INCREASES OF 15 FOR THE AVERAGE EQUIPPED 1994 CAR AND
OF 22 FOR THE AVERAGE EQUIPPED LIGHT TRUCK GM SAID GM SAID THE AVERAGE
PRICE INCREASE WILL AMOUNT TO 290 A CAR AND 445 A TRUCK

AMONG PRICING EXAMPLES GM GAVE WERE THE SUBCOMPACT CAVALIER VL COUPE FOR
WHICH THE 1994 PRICE IS GOING UP 38 TO 8845 FROM 8520 AND THE
CAVALIER VL SEDAN UP 44 TO 8995 FROM 8620 THE 1994 PRICES ACTUALLY
WILL STILL UNDERCUT THE 1992 PRICES SLIGHTLY THOUGH

ONE EXAMPLE OF VALUE PRICING IS THE CHEVROLET LUMINA SEDAN A GENEROUSLY
EQUIPPED 1994 LUMINA WITH AIR CONDITIONING A V6 ENGINE AND TILT STEERING
WILL SELL FOR 15305 A COMPARABLY EQUIPPED 1993 LUMINA WOULD HAVE SOLD FOR
89 MORE BUT THE TRADEOFF IS THAT CONSUMERS CAN NO LONGER BUY A LESS
EXPENSIVE VERSION WHICH RAN ON A FOURCYLINDER ENGINE AND CAME WITHOUT AIR
CONDITIONING THAT MODEL SOLD FOR JUST 13400 9307140056 930714
INTERNATIONAL JAPAN'S LDP MAY GET RULING MINORITY ROLE  
OPPOSITION LEADER SUGGESTS PARTY MAY KEEP POWER REJECTS IDEA OF
COALITION  BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL
STREET JOURNAL

OMIYA JAPAN JAPAN'S RULING LIBERAL DEMOCRATIC PARTY MAY BE DOWN THESE
DAYS BUT A LEADING OPPOSITION POLITICIAN AND A GROWING NUMBER OF POLLS SAY
IT MAY NOT BE OUT OF POWER AFTER THIS SUNDAY'S NATIONAL ELECTIONS

IT STILL APPEARS VIRTUALLY IMPOSSIBLE THAT THE LDP WHICH SPLIT LAST MONTH
IN A BATTLE OVER POLITICAL REFORM WILL WIN AN OUTRIGHT MAJORITY OF SEATS IN
THE LOWER HOUSE OF PARLIAMENT BUT SURVEYS PUBLISHED WEDNESDAY BY EVERY
MAJOR JAPANESE NEWSPAPER FORECAST THAT THE PARTY WILL DO FAR BETTER THAN
DIRE PREDICTIONS ISSUED THREE WEEKS AGO

DEPENDING ON THE STRATEGIES OF JAPAN'S MANY OPPOSITION PARTIES THE LDP
COULD END UP IN A RULING COALITION OR AS A RULING MINORITY PARTY

I THINK THERE IS A RATHER LARGE POSSIBILITY OF THE LDP BECOMING A RULING
MINORITY PARTY MORIHIRO HOSOKAWA HEAD OF THE JAPAN NEW PARTY TOLD
REPORTERS AFTER A CAMPAIGN STOP IN THIS TOKYO SUBURB TUESDAY NIGHT

MR HOSOKAWA'S VIEWS ON THE SUBJECT ARE ESPECIALLY SIGNIFICANT BECAUSE HIS
YEAROLD CONSERVATIVE PARTY IS EXPECTED TO DO WELL IN THE VOTE AND WILL
HAVE A MAJOR ROLE IN SHAPING THE NEXT GOVERNMENT

MR HOSOKAWA REITERATED HIS INSISTENCE THAT THE JNP WOULDN'T FORM AN
OUTRIGHT COALITION WITH THE LDP BUT HE ALSO REPEATED THAT HIS PARTY WOULD
REFUSE TO ENTER A COALITION WITH JAPAN'S OTHER LEADING OPPOSITION PARTIES
HE ACKNOWLEDGED THAT HIS STANCE WOULD LIKELY ALLOW THE LDP WHICH WILL STILL
BE THE SINGLE LARGEST PARTY TO REMAIN THE DOMINANT PARTY IN THE NEXT
SESSION OF PARLIAMENT

IN SUCH A SITUATION MR HOSOKAWA SAID HIS PARTY WOULD SIDE WITH THE LDP ON
SOME ISSUES AND AGAINST IT ON OTHERS IF THE ISSUE IS SECURITY OR
DIPLOMACY I WOULD CHOOSE STABILITY HE SAID IF POLITICAL REFORM I'LL
CHOOSE CHANGE

JAPAN'S SOCIALIST PARTY MEANWHILE APPEARS HEADED FOR A LANDSLIDE DEFEAT
MAINLY AT THE HANDS OF NEW CONSERVATIVE PARTIES IF THE SURVEYS PROVE
CORRECT A MAJOR RESULT OF JAPAN'S POLITICAL TURMOIL WOULD BE THE NATION'S
MOST CONSERVATIVE LEGISLATURE IN DECADES

TO BE SURE THE NEWSPAPER POLLS WERE ALL CONDUCTED LAST WEEKEND A WEEK
BEFORE THE VOTE AND VOLATILE PUBLIC SENTIMENT COULD STILL TURN AGAINST
THE LDP WHICH HAS HELD POWER FOR 38 CONSECUTIVE YEARS AND SIMPLY GAINING
MINORITY CONTROL OF THE NEXT GOVERNMENT WOULD NOT ENSURE THE LONGTERM
SECURITY OF THE LDP MANY ANALYSTS SAY THAT THE LDP'S PRECARIOUS POSITION
COULD TRIGGER SEVERAL ELECTIONS OVER THE NEXT TWO YEARS AND THAT THE LDP'S
SUPPORT COULD CONTINUE TO ERODE AS PART OF A BROAD REALIGNMENT OF JAPAN'S
POLITICAL SYSTEM

THE LDP ESSENTIALLY LOST ITS MAJORITY IN THE LOWER HOUSE OF PARLIAMENT LAST
MONTH WHEN DOZENS OF MEMBERS SUPPORTED A VOTE OF NOCONFIDENCE AGAINST
PRIME MINISTER KIICHI MIYAZAWA AND DEFECTED FROM THE PARTY BEFORE
SPLITTING THE LDP HAD 275 SEATS IN THE ASSEMBLY WELL ABOVE THE 256 SEATS
NEEDED FOR A MAJORITY OF THE 511SEAT LOWER HOUSE THE LDP IS RUNNING 280
CANDIDATES IN SUNDAY'S ELECTION 227 OF WHOM ARE INCUMBENTS

WHEN PARLIAMENT WAS DISSOLVED AFTER THE NOCONFIDENCE VOTE SOME ANALYSTS
SAID THE LDP'S STRENGTH COULD FALL TO AS LOW AS 180 SEATS BUT TODAY'S
NEWSPAPER SURVEYS ALL SAY THE LDP WILL DO BETTER AND SOME FORECAST THE
PARTY COULD EVEN HOLD ITS 227 SEATS WHICH THE PARTY WOULD PROBABLY CONSIDER
A VICTORY

THE ASAHI SHIMBUN NEWSPAPER SAID THE LDP IS LIKELY TO WIN BETWEEN 215 AND
235 SEATS THE NIHON KEIZAI SHIMBUN SAID IT WOULD LIKELY WIN AT LEAST 220
SEATS AND IS APPROACHING ITS EXISTING NUMBERS

SOME ANALYSTS SAY THAT IF THE LDP HOLDS ON TO ITS 227 SEATS PRIME MINISTER
MIYAZAWA COULD EVEN RETAIN THE PREMIERSHIP FOR A WHILE AFTER THE ELECTION
AFTER LOSING THE NOCONFIDENCE VOTE MR MIYAZAWA WAS BRANDED A LAME DUCK
AND IT HAS BEEN WIDELY ASSUMED HE'D BE DUMPED BY THE PARTY AFTER SUNDAY'S
VOTE

MR HOSOKAWA'S PARTY AS WELL AS THE MAJOR LDP SPLINTER GROUP ARE BOTH
EXPECTED TO GET IN THE RANGE OF 40 TO 50 SEATS WHICH WOULD BE CONSIDERED
STRONG SHOWINGS THE SOCIALISTS WHO HAD 137 SEATS IN THE PREVIOUS
PARLIAMENT HAVE LITTLE CHANCE OF WINNING MORE THAN 80 SEATS THE POLLS
SAID 9307140055 930714 SPENDING IN KANKAKEE ILL LOCALS VIEW ECONOMY
 WITH SKEPTICISM DESPITE SIGNS OF STRENGTH  BY CARL QUINTANILLA 
STAFF REPORTER OF THE WALL STREET JOURNAL

KANKAKEE ILL WHY IS THE NATION'S ECONOMY SUCH AN ENIGMA MEET THE
DELAHR BROTHERS MARVIN AND STEVE

THE TWO WELLTANNED CONSTRUCTION SURVEYORS HAVE WORKED 60HOUR WEEKS FOR
MORE THAN A YEAR NOW MAKING GOOD MONEY THANKS TO A CONSTRUCTION BOOMLET
IN THIS COMMUNITY 50 MILES SOUTH OF CHICAGO AT THE MOMENT THEY'RE HELPING
TO COMPLETE A 12ACRE 45 MILLION SUPER KMART

MARVIN A BURLY TATTOOED 36YEAROLD IS THE OPTIMIST I DON'T EXPECT TO
BE OUT OF WORK UNTIL I'M 60 SAYS THE FATHER OF FIVE WHO RECEIVED FOUR NEW
WORK ORDERS JUST LAST WEDNESDAY HE RECENTLY BOUGHT A NEW PONTIAC FIREBIRD
AND A 1400 DINING ROOM SET WITH HIS EXTRA INCOME

BUT YOUNGER BROTHER STEVE A LACONIC 32YEAROLD WITH FOUR CHILDREN IS
HESITANT TO SPLURGE ON MUCH OF ANYTHING SAYING HE IS JUST HAPPY TO HAVE
THE WORK A VACATION STEVE HAS GONE WITHOUT ONE FOR SEVEN YEARS AND
DOESN'T PLAN ONE NOW ANY LITTLE LUXURIES FOOD HE SAYS SHRUGGING HIS
SHOULDERS

IT'S DIFFICULT IN THIS FAIRLY TYPICAL MIDWESTERN COMMUNITY TO FIND MANY
FOLKS WHO AGREE ON WHERE THE DOMESTIC ECONOMY IS HEADED LIKE MOST
AMERICANS THEY ARE GETTING MIXED SIGNALS ON THE NATIONAL LEVEL CHRISTMAS
RETAIL SALES WERE STRONG BUT CONSUMER SPENDING HAS SINCE TURNED SLUGGISH
CONSUMER CONFIDENCE SURGED AFTER PRESIDENT CLINTON'S ELECTION HE WON IN
KANKAKEE COUNTY WITH 43 OF THE VOTE BUT IT HAS FALLEN IN RECENT MONTHS

AT HOME INDUSTRIAL AND COMMERCIAL CONSTRUCTION IS STRONG BUT THE DOWNTOWN
BUSINESS DISTRICT RESEMBLES A GHOST TOWN WHILE THE JOBLESS RATE IS DOWN TO
82 FROM 96 LAST SUMMER THE HEALTHCARE CRISIS AND THE POSSIBILITY OF
HIGHER GASOLINE TAXES ARE WORRISOME

STILL THE MOOD OF UNCERTAINTY FLIES IN THE FACE OF FAIRLY STRONG ECONOMIC
GROWTH IN KANKAKEE COUNTY WHERE MANUFACTURING AND SERVICE TRADES MAKE UP
ALMOST HALF OF THE WORK FORCE NEARLY 4000 NEW JOBS HAVE BEEN CREATED IN
THE 1990S AS EMPLOYERS LIKE ARMSTRONG WORLD INDUSTRIES INC A FLOORTILE
MAKER HAVE EXPANDED ALONG ROUTE 50 JUST NORTH OF THE CITY A LARGE
BLOCKBUSTER VIDEO OUTLET HAS JUST OPENED AND A TARGET STORE IS GOING UP
DOWN THE STREET THE GARGANTUAN SUPER KMART IS NEARING COMPLETION RIGHT NEXT
TO THE BUSTLING NEW WALMART

AND AS WORKING COUPLES MOVE HERE FROM CHICAGO TO TAKE ADVANTAGE OF SUBURBAN
LIFE AND CHEAPER REAL ESTATE CONSTRUCTION OF NEW HOMES AND BUSINESSES
CONTINUES TO SURGE WITH NEARLY 1000 BUILDING PERMITS ISSUED IN THE COUNTY
SINCE JANUARY IT'S THE BEST I'VE SEEN IN 20 YEARS SAYS REAL ESTATE AGENT
KAREN HERTZBERGER TAKING A BREAK FROM ANSWERING HOME BUYERS' QUESTIONS AT A
SHOPPING MALL BOOTH

WALLACE AMES A CONTRACTOR WHO OWNS AMES PAINTING HAS SEEN BUSINESS JUMP
10 IN THE PAST YEAR ALONE ENOUGH FOR HIM TO BUY A 1932 AUSTINHEALEY
ROADSTER WITH A BIG CHEVY ENGINE THE CAR WAS A 40YEAR DREAM COME TRUE
HE SAYS BEAMING AND THE ECONOMY AROUND HERE IS AS GOOD AS ANY

SO WHY ARE SO MANY OTHERS PESSIMISTIC SOME OBSERVERS SUGGEST THAT THERE HAS
BEEN A GENERAL MISTRUST OF THE ECONOMY HERE SINCE TWO EMPLOYERS ROPER
CORP AND AO SMITH CORP CLOSED LOCAL PLANTS IN THE 1980S LEAVING
ABOUT 5000 PEOPLE OUT OF WORK IT WAS DEVASTATING SAYS LESTER J SOUCIE
A RETIRED REAL ESTATE BROKER IT GAVE US AN INFERIORITY COMPLEX LIKE WE
WEREN'T WANTED OR NEEDED IT'S HARD TO RECOVER FROM THAT

OTHERS AGREE THAT THE SKEPTICISM WON'T FADE QUICKLY THERE'S OPTIMISM OUT
THERE BUT I DON'T THINK WE'LL EVER SEE THE GLORY DAYS WHERE YOU DON'T WORRY
ABOUT WHAT'S COMING UP NEXT SAYS JOE KILGOR A LOCAL MORTGAGE OFFICER FOR
FIRST OF AMERICA BANK

DAVE BAKER A 33YEAROLD SALES CLERK AT THE LOCAL WALMART IS TYPICAL HIS
WAGES HAVE INCREASED ABOUT 4 ANNUALLY IN RECENT YEARS ENOUGH TO GET HIM
THINKING ABOUT BUYING A 16000 FORD EXPLORER FOR HIS FAMILY OF FOUR BUT AS
HE WAITS FOR HIS WIFE AT THE NEW NORTHFIELD MALL HE ADDS THAT I WON'T BUY
THE CAR AS LONG AS THEY'RE TALKING ABOUT RAISING GAS TAXES

WELDER ROY BEESON 33 YEARS OLD HAS BEEN WORKING 10HOUR DAYS LATELY
EARNING NEARLY 1000 A WEEK BUT HE SAYS HE'LL KEEP HIS AGING CHEVY S10
PICKUP TRUCK AND MAY REMODEL HIS HOUSE RATHER THAN MOVE TO A LARGER ONE
IT'S NOT LIKE WE'RE ROLLING IN DOUGH HE EXPLAINS

AREA RESIDENTS AND BUSINESSES ARE ALSO DUBIOUS THAT THE REALESTATE BOOM
WILL IGNITE A DEEPER RECOVERY WHILE SOME LOCAL EMPLOYERS ARE INDEED
EXPANDING THEIR FACILITIES ARMSTRONG ADDED 30 NEW HIRES TO ITS WORK FORCE
OF 400 THIS YEAR MANY COMPANIES ARE TAKING A WAITANDSEE ATTITUDE SAYS
PATRICIA BLANCHETTE PRESIDENT OF THE KANKAKEE COUNTY ECONOMIC DEVELOPMENT
COUNCIL

ONE LOCAL MANUFACTURER CANCELED PLANS TO HIRE 50 NEW PEOPLE BECAUSE OF
CONCERNS OVER HOW A NATIONAL HEALTH CARE POLICY WOULD AFFECT COSTS LOCAL
PLANT MANAGERS SAY THAT THE COST OF PROVIDING MEDICAL INSURANCE HAS
INCREASED 20 IN THE PAST YEAR AND THAT AS A RESULT THEY HAVE CUT BACK ON
THEIR HEALTH INSURANCE COVERAGE ARMSTRONG RECENTLY REPLACED ITS RETIREE
MEDICAL PROGRAM WITH A STOCK PLAN

THE UNCERTAINTIES ARE PROMPTING SOME KANKAKEE EMPLOYERS TO HIRE MORE
TEMPORARY WORKERS PAUL FOSTER OF PAUL FOSTER EMPLOYMENT SERVICE INC SAYS
HIRING OF TEMPORARY WORKERS GREW MORE THAN 20 LAST YEAR ALONE

SOME SMALL BUSINESSES ARE ESPECIALLY WORRIED I'VE NEVER SEEN THE ECONOMY
THIS BAD SAYS HAROLD JAFFE WHO HAS OPERATED JAFFE'S STORE FOR MEN IN
DOWNTOWN KANKAKEE SINCE 1958 LEANING BESIDE HIS CASH REGISTER HE SAYS
SALES HAVE SHOWN A GOOD DROP IN THE PAST YEAR THERE ARE DAYS WHEN
THERE'S JUST NO ONE COMING IN THE DOOR

AND LOCAL ACCOUNTANT DON BACON IS SO PESSIMISTIC ABOUT THE ECONOMY THAT HE
RECENTLY SOLD HIS 200000 HOME WITH SWIMMING POOL AND MOVED INTO A
TWOBEDROOM 475AMONTH RENTAL APARTMENT IT'S CALLED LIVING WITHIN YOUR
BUDGET SAYS THE DIVORCED 53YEAROLD WHO USED HIS HOMESALE MONEY TO PAY
OFF DEBTS MR BACON BELIEVES SOARING DEBT AND HEALTHCARE COSTS HAVE
BROUGHT THE US ECONOMY TO ITS LAST DAYS I JUST DON'T THINK THERE'S ANY
HOPE HE SAYS WE'VE FINISHED THE PARTY AND NOW THE HANGOVER IS GOING TO
START SETTING IN AND IF I'M WRONG WELL THEN I CAN'T GET HURT

CINDY BERTRAND A 40YEAROLD HOMEMAKER TOOK A JOB SELLING SHOES LAST YEAR
AFTER WATCHING HER FAMILY'S GROCERY BILLS CLIMB 8 IN A YEAR TO 600 A
MONTH RETIRED JANITOR LEONARD VAUGHAN LEARNED TO FIX HIS OWN FURNACE LAST
WINTER RATHER THAN BUY A NEW ONE 9307140054 930714 POLITICS & POLICY 
CAPITAL JOURNAL  BY GERALD F SEIB

TO DEMOCRATS FRETTING ABOUT THE POLITICAL PRICE THEY WILL PAY IF THEY VOTE
FOR PRESIDENT CLINTON'S PROPOSED TAX INCREASES HERE'S A WORD OF
CONSOLATION

RELAX AND VOTE FOR THE TAX INCREASE IF HISTORY IS ANY GUIDE YOUR CHANCES
OF BEING REELECTED ARE BETTER IF YOU VOTE FOR IT THAN IF YOU VOTE AGAINST
IT

THE EVIDENCE SIMPLY DOESN'T SUPPORT THE POPULAR THEORY THAT LAWMAKERS WILL
INCUR VOTERS' WRATH IF THEY VOTE FOR THE TAXINCREASE PACKAGE CONGRESS IS
ABOUT TO WRAP UP BACK IN 1990 CONGRESS PASSED A BIG DEFICITCUTTING PLAN
THAT INCLUDED MORE THAN 140 BILLION IN TAX INCREASES IN THE ELECTION A FEW
WEEKS LATER JUST SIX OF THE 228 HOUSE MEMBERS WHO VOTED FOR THE TAX
INCREASE WERE DEFEATED BY CONTRAST NINE LAWMAKERS WHO VOTED AGAINST THE
TAX INCREASE LOST THEIR SEATS

IN OTHER WORDS A REPRESENTATIVE'S CHANCES OF KEEPING HIS JOB WERE BETTER IF
HE VOTED FOR HIGHER TAXES THAN IF HE VOTED AGAINST THEM

THE SAME PHENOMENON WAS SEEN IN 1982 THE YEAR OF THE PREVIOUS BIGGEST TAX
INCREASE THAT SUMMER CONGRESS APPROVED ABOUT 98 BILLION IN HIGHER TAXES
ABOUT THREE MONTHS LATER LAWMAKERS FACED THE VOTERS AND 29 HOUSE MEMBERS
LOST THEIR SEATS OF THOSE 11 HAD VOTED FOR THE TAX INCREASE PACKAGE AND
18 HAD VOTED AGAINST IT AGAIN THE ODDS FAVORED THOSE WHO HAD VOTED FOR THE
TAX INCREASES

THIS DOESN'T MEAN THAT VOTERS LIKE HAVING THEIR TAXES RAISED OF COURSE IT
DOES MEAN THAT THE EQUATION IS A LOT MORE COMPLICATED THAN MOST EASY
ANALYSIS SUGGESTS AND THAT VOTERS HAVE A LOT MORE THAN THE ALIGNMENT OF TAX
BRACKETS ON THEIR MINDS WHEN THEY HEAD TO THE POLLS

ABOVE ALL THE MESSAGE FOR PRESIDENT CLINTON AND HIS DEMOCRATS IS THAT THEIR
BIGGEST WORRY SHOULD BE HOW THE ECONOMY PERFORMS ONCE A CLINTON PLAN IS IN
PLACE BY THE 1994 ELECTION THE ECONOMIC FACTS ON THE GROUND ARE LIKELY TO
BE A LOT MORE IMPORTANT THAN MEMORIES OF THE SPECIFIC VOTE THAT WILL BE CAST
SOME TIME IN THE NEXT FEW WEEKS AFTER HOUSE AND SENATE NEGOTIATORS WORK OUT
THE FINAL VERSION OF CLINTONOMICS

THE REAL DISASTER FOR DEMOCRATS WOULD COME IF THEIR EFFORT TO PASS AN
ECONOMIC PLAN COLLAPSES PRODUCING VISIONS OF DISARRAY AND UNCONTROLLABLE
DEFICITS THAT WOULD SEND FINANCIAL MARKETS AND CONSUMER CONFIDENCE
PLUMMETING DEMOCRATS ALSO COULD GET A SLOWMOTION VERSION OF THIS DISASTER
IF THEY PRODUCE SUCH A MUSHY VERSION OF THE CLINTON PLAN THAT THE FINANCIAL
MARKETS CONCLUDE WON'T REALLY CUT THE DEFICIT AND AS A RESULT SLIDE INTO A
LONG FUNK

IN ANY EVENT THE HISTORY OF 1982 AND 1990 SUGGESTS THAT A VOTE FOR TAX
INCREASES ALONE WON'T BE ENOUGH TO UNDO MOST DEMOCRATS THERE ARE A VARIETY
OF EXPLANATIONS FOR THIS CONGRESSIONAL ELECTIONS STILL TEND TO BE
INFLUENCED MORE BY LOCAL CONSIDERATIONS THE PERSONAL POPULARITY OF AN
INDIVIDUAL REPRESENTATIVE THE HANDLING OF THE DISTRICT'S PARTICULAR
PROBLEMS THE PRESENCE OF SOME SCANDAL THAN ANYTHING ELSE AND THE POWER
OF INCUMBENCY HELPS LAWMAKERS OVERCOME RIPPLES CREATED BY ANY SINGLE
UNPOPULAR MOVE

BEYOND THAT IN BOTH 1982 AND 1990 VOTERS BECAME CONVINCED THAT THERE WAS A
RATIONAL CONTEXT FOR VOTING FOR HIGHER TAXES THAT A TAX INCREASE WAS NEEDED
AS PART OF A BROADER EFFORT TO CONTROL THE FEDERAL DEFICIT

THE QUESTION NOW IS WHETHER CIRCUMSTANCES HAVE SHIFTED IN 1993 TO MAKE A
VOTE FOR TAXES MORE DAMAGING ONE KEY DIFFERENCE IS THAT IN BOTH 1982 AND
1990 THERE WAS AN ANTITAX REPUBLICAN PRESIDENT IN THE WHITE HOUSE WHO
BLESSED THE TAX INCREASES AND GAVE LAWMAKERS POLITICAL COVER NOW THERE'S A
DEMOCRAT IN CHARGE AND NO REPUBLICANS WILL GIVE DEMOCRATS POLITICAL COVER
BY SUPPORTING THE CLINTON PLAN

IT'S ALSO POSSIBLE THAT THE MOOD OF CYNICISM IN THE COUNTRY HAS SO DEEPENED
THAT VOTERS SIMPLY WON'T BE AS UNDERSTANDING AS THEY ONCE WERE CERTAINLY BY
LAST YEAR THEY WERE READY TO FLOG GEORGE BUSH FOR FAILING TO BLOCK A TAX
INCREASE AFTER PROMISING THAT HE WOULD MORE THAN EVER VOTERS ARE LIKELY TO
DEMAND EVIDENCE OF SPENDING CUTS AS THE PRICE FOR ACCEPTING HIGHER TAXES

YET MR CLINTON AND HIS TROOPS ALSO HAVE SOME NEW ADVANTAGES AS WELL FOR
ONE THE CLINTON TAX INCREASES ARE MORE POPULIST THAN THE EARLIER PACKAGES
FALLING MORE HEAVILY ON THE RICH

WHAT'S MORE THE PUBLIC IS MORE INSISTENT THAN EVER ON DEFICIT REDUCTION
AND ROSS PEROT SHOWED THAT SUCH SENTIMENTS CAN BE TURNED INTO SUPPORT FOR
EVEN GIANT TAX INCREASES SO THE KEY FOR DEMOCRATS IS TO CONVINCE THE PUBLIC
THAT THESE TAX INCREASES ACTUALLY WILL FINALLY CUT THE DEFICIT DEMOCRATS'
FORTUNES WILL RIDE MUCH MORE ON THE WAY CLINTONOMICS WORKS THAN ON THE
NARROW QUESTION OF WHETHER THEY VOTED TO RAISE TAXES

NOTES FORMER REAGAN WHITE HOUSE CHIEF OF STAFF KENNETH DUBERSTEIN IT'S THE
RESULTS STUPID 9307140053 930713 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 9307140052
930714 LEVITT REAPS PRAISE DURING HEARING FOR TOP SEC POST  BY
CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE CONFIRMATION HEARING FOR ARTHUR LEVITT JR BECAME
SOMETHING OF A LOVE FEST WITH DEMOCRATIC AND REPUBLICAN SENATORS RUSHING TO
PRAISE THE ALMOSTCERTAIN CHAIRMAN OF THE SECURITIES AND EXCHANGE
COMMISSION

MR LEVITT SHOULD ENJOY THE AFTERGLOW WHILE IT LASTS REPUBLICAN SEN ROBERT
BENNETT OF UTAH CALLED HIM ONE OF THE BEST NOMINEES THAT THE PRESIDENT HAS
SENT TO US BUT A HANDFUL OF OTHERS ON THE SENATE BANKING COMMITTEE TRIED
BUT FAILED TO GET HIS COMMITMENT TO TWO PET ISSUES INVOLVING STOCK OPTIONS
AND LITIGATION THAT ARE LIKELY TO DOG THE SEC EARLY IN HIS TENURE

THE MOST VOLATILE AND IMMINENT ISSUE IS A PROPOSAL TO REQUIRE
COMPANIES TO DEDUCT FROM THEIR EARNINGS THE VALUE OF STOCK OPTIONS GRANTED
TO EXECUTIVES SENS BARBARA BOXER D CALIF AND CONNIE MACK R FLA
PRESSED MR LEVITT TO AGREE WITH THEM THAT THE FINANCIAL ACCOUNTING
STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS SHOULD BE
BLOCKED FROM IMPOSING THE OPTIONS RULE THE SENATORS WANT TO SCRAP THE
PENDING RULE BECAUSE IT WOULD HURT HIGHTECH FIRMS AND OTHER STARTUP
COMPANIES THAT OFFER OPTIONS IN LIEU OF HIGH SALARIES

WHILE MR LEVITT CONCEDED THAT THE ACCOUNTING PROPOSAL COULD HURT
CASHSTRAPPED COMPANIES HE SAID HE IS VERY APPREHENSIVE ABOUT THE NOTION
OF LEGISLATING ACCOUNTING STANDARDS

SEN BOXER WHOSE CONSTITUENTS INCLUDE MANY OF THE HIGHTECH COMPANIES THAT
ARE LOBBYING HARD AGAINST THE FASB RULE ARGUED THAT SHE AND OTHER OPPONENTS
DON'T HAVE MUCH CHOICE BUT TO RESPOND WITH LEGISLATION

SHE ALSO SEEMED TO SUGGEST THAT MR LEVITT SHOULD EXERCISE THE SEC'S
SELDOMUSED POWER TO OVERRULE FASB I HOPE YOU CAN USE YOUR EXPERIENCE AND
POWER OF PERSUASION TO TRY TO HEAD THIS OFF SHE SAID

ON ANOTHER HEAVILY LOBBIED ISSUE THAT OF LIMITING PRIVATE CLAIMS OF
SECURITIES FRAUD MR LEVITT WAS EQUALLY UNWILLING TO COMMIT HIMSELF OR THE
SEC TO LEGISLATIVE REFORM EFFORTS

REPUBLICAN SENS PETE DOMENICI OF NEW MEXICO AND LAUCH FAIRCLOTH OF NORTH
CAROLINA CITING THE DAMAGE WROUGHT BY FRIVOLOUS SECURITIESFRAUD LAWSUITS
SOUGHT MR LEVITT'S ENDORSEMENT OF EFFORTS TO CURTAIL SUCH SUITS

WHILE THE NOMINEE SAID HE WAS DEEPLY MINDFUL OF THIS PROBLEM HE WAS
HESITANT TO EMBRACE REFORMS THAT COULD SIMULTANEOUSLY BLOCK LEGITIMATE
SECURITIESFRAUD CLAIMS PROTECTING THE INVESTOR IS MY FIRST AND FOREMOST
CONCERN HE SAID

A CONFIRMATION VOTE BY THE SENATE BANKING COMMITTEE HASN'T BEEN SCHEDULED
BUT A VOTE IS LIKELY TO HAPPEN IN TIME FOR THE FULL SENATE TO CONSIDER MR
LEVITT'S NOMINATION BEFORE THE LAWMAKERS LEAVE FOR THEIR SUMMER RECESS SET
TO BEGIN AUG 9 9307140051 930714 TUESDAY'S MARKETS STOCK BOND 
PRICES SHOW SLIM CHANGE  INVESTORS BIDING TIME PENDING NEW REPORT
 ON CONSUMER PRICES  BY STEVEN E LEVINGSTON STAFF REPORTER OF
THE WALL STREET JOURNAL

BOTH STOCK AND BOND PRICES WERE MIXED AFTER AN UPBEAT REPORT ON INFLATION
FAILED TO INSPIRE INVESTORS THE DOLLAR FELL

THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 894 POINTS TO 351544 STANDARD &
POOR'S 500STOCK INDEX EASED 089 TO 44809 AND THE NASDAQ COMPOSITE INDEX
EDGED UP 080 TO 70847

BUT ANALYSTS SAID WARY STOCK MARKET INVESTORS WERE STILL AWAITING TODAY'S
RELEASE OF DATA ON CONSUMER PRICES THE REASON FOR THE HESITATION IN THE
MARKET IS CONCERN ABOUT THE CONSUMER PRICE INDEX SAID ALAN R ACKERMAN
MARKET STRATEGIST AT REICH & CO IT TAKES TWO TO TANGO

FURTHER CONTRIBUTING TO INVESTORS' APPREHENSION IS THAT STOCK PRICES REMAIN
FAIRLY HIGH AND THE REPORTING SEASON FOR SECONDQUARTER EARNINGS IS JUST
BEGINNING AND THERE ISN'T YET A CLEAR PICTURE OF STRENGTH WE'RE STILL IN A
VERY TIGHT TRADING RANGE SAID NED COLLINS HEAD OF TRADING AT DAIWA
SECURITIES AMERICA WE'RE IN A RANGE OF 3510 TO 3530 ON THE DOW THAT WE
CAN'T SEEM TO BREAK OUT OF

COMMUNICATIONS TECHNOLOGY STOCKS WERE STAR PERFORMERS LED BY MOTOROLA WHICH
REPORTED A 57 JUMP IN SECONDQUARTER EARNINGS MONDAY MOTOROLA CLIMBED 2
5/8 OR 3 TO 89 1/2 AIRLINE STOCKS REBOUNDED FROM A PLUNGE MONDAY AMID
RISING OIL PRICES THE RECOVERY HELPED TO SPARK A TURNAROUND IN THE DOW
JONES TRANSPORTATION AVERAGE WHICH GAINED 882 TO 150454 AFTER SINKING
1344 POINTS MONDAY USAIR JUMPED 7/8 OR 64 TO 14 5/8 WHILE UAL THE
PARENT OF UNITED AIRLINES ROSE 3 3/8 OR 27 TO 126 1/4

BOND MARKET TRADERS WERE UNENTHUSIASTIC EVEN THOUGH THE PRODUCER PRICE
REPORT CONFIRMED THAT INFLATION IS WELL UNDER CONTROL ANALYSTS SAID TRADERS
WERE HOPING FOR A SHARPER DROP IN THE INDEX ESPECIALLY SINCE FOOD PRICES
WILL LIKELY RISE SIGNIFICANTLY IN THE NEXT REPORT BECAUSE OF FLOODING IN THE
MIDWEST ALSO A SHARP DECLINE IN TOBACCO PRICES WHICH CONTRIBUTED HEAVILY
TO THE LOWER CORE RATE OF INFLATION WON'T BE REPEATED IN THE MONTHS AHEAD
ANALYSTS SAID

AS A RESULT BOND TRADERS ARE CONCENTRATING ON TODAY'S CONSUMER PRICE
REPORT IT IS THE BROADER MORE SIGNIFICANT INDEX SAID DAVID C MUNRO
CHIEF US ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK ECONOMIC
CONSULTING FIRM IF WE GET TWO POSITIVE REPORTS IN HAND INVESTORS WILL
FIND THAT REASSURING BUT I DON'T KNOW IF THAT SUGGESTS ANY HEADLONG RALLY

MR MUNRO POINTED OUT THAT LONGTERM BOND PRICES CLIMBED IN ANTICIPATION OF
GOOD INFLATION REPORTS SO FURTHER GAINS MAY BE LIMITED

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX GAINED 102 TO 10666

IN MAJOR MARKET ACTION

STOCK PRICES WERE MIXED VOLUME TOTALED 2367 MILLION SHARES ON THE NEW YORK
STOCK EXCHANGE WHERE 983 ISSUES ROSE AND 953 DECLINED

BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE 1/8
POINT OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 661 A 16YEAR LOW
SHORTERMATURITY BONDS EASED

THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17185
MARKS AND 10802 YEN COMPARED WITH 17305 MARKS AND 10940 YEN MONDAY
9307140050 930714 MONEY RATES

THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL
LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS

PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF
THE NATION'S 30 LARGEST BANKS

FEDERAL FUNDS 3 HIGH 2 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 312 60 TO 89 DAYS 313 90 TO 119 DAYS 315 120 TO 149
DAYS 318 150 TO 179 DAYS 325 180 TO 229 DAYS 332 230 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS 314 30 DAYS 317 60 DAYS 319 90 DAYS

CERTIFICATES OF DEPOSIT 261 ONE MONTH 267 TWO MONTHS 270 THREE
MONTHS 286 SIX MONTHS 305 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR
NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS
OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE
SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 330 SIX MONTHS

BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 309 90 DAYS 313 120
DAYS 316 150 DAYS 322 180 DAYS OFFERED RATES OF NEGOTIABLE
BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER

LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO
MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3
3/8 3 1/4 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE
MONTHS 3 1/2 SIX MONTHS 3 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 695 60 DAYS 702 STANDARD
CONVENTIONAL FIXEDRATE MORTGAGES 4125 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 690 60
DAYS 700 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
9307140049 930714 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF
FEDERAL AND STATE TAX DEVELOPMENTS  BY SCOTT R SCHMEDEL

STATES TOLL ALARMS FOR A THREAT TO LIMIT TAXES ON TELECOMMUNICATIONS
CONCERNS

THE TAX BILLS GOING INTO CONGRESSIONAL CONFERENCE WOULD LET THE FEDERAL
GOVERNMENT RAISE CASH BY AUCTIONING OFF SOME MICROWAVE FREQUENCIES TO
CELLULARCOMMUNICATIONS COMPANIES NOW RELATED MEASURES BURIED IN THE BILLS
WITHOUT THE STATES' KNOWLEDGE HAVE THEM OUTRAGED DAN BUCKS OF THE
MULTISTATE TAX COMMISSION SAYS IF ENACTED HE SAYS THE PROPOSALS WOULD
LIMIT STATE AND LOCAL POWERS TO LEVY PROPERTY AND OTHER TAXES ON COMPANIES
WITH FCC LICENSES STATES SAY THEY COULD LOSE HUGE AMOUNTS OF REVENUE

STATES FEAR THE MOVE WOULD LET JUDGES CUT PROPERTY APPRAISALS BY
COURTDETERMINED LICENSE VALUES PROVOKING BROAD VALUATION DISPUTES HOUSE
AND SENATE MEASURES DIFFER DEPENDING ON THE LANGUAGE ADOPTED AND ON COURT
INTERPRETATIONS STATES SAY THE MEASURE COULD APPLY JUST TO THE AUCTIONED
LICENSES AND JUST TO PROPERTY TAXES OR TO ALL FCC LICENSEES AND TO ALL
KINDS OF LEVIES SUCH AS SALES AND INCOME TAXES IN ANY CASE THEY SAY IT
WOULD REVERSE A LONG LINE OF COURT RULINGS THAT BAR RESTRICTIONS ON STATE
POWERS TO TAX FEDERAL LICENSEES

CALIFORNIA ESTIMATES THAT SUCH A LAW COULD DEPRIVE IT OF 25 MILLION A YEAR
IN PROPERTY TAXES

REPEALING LUXURY TAXES COULD RELEASE A FLOOD OF REFUND CLAIMS

BOTH BILLS IN CONFERENCE WOULD REPEAL THE 10 TAX ON THAT PART OF A RETAIL
PRICE THAT TOPS 250000 FOR AIRPLANES 100000 FOR BOATS AND 10000 FOR
JEWELRY AND FURS THE BILLS WOULD CONTINUE TO TAX AUTOS BUT WOULD INDEX THE
30000 THRESHOLD FOR INFLATION RAISING IT TO 32500 FOR 1993 IF THE
MEASURES ARE RETROACTIVE TO LAST JAN 1 AS PROPOSED THEY WILL CREATE
CUSTOMER TRAFFIC AS BUYERS RETURN TO SELLERS TO SEEK REFUNDS

PEOPLE WHO PAID THE REPEALED TAXES THIS YEAR COULD GET FULL REFUNDS A BUYER
OF A CAR FOR OVER 30000 COULD RETRIEVE UP TO 250 THE TAX ON THE AMOUNT
BETWEEN 30000 AND 32500 SUSAN JACOBS AN AUTOINDUSTRY CONSULTANT
ESTIMATES 366965 CARS WITH SUGGESTED PRICES ABOVE 30000 HAVE BEEN SOLD IN
1993 SENATE MAJORITY CHIEF MITCHELL OF MAINE A BOATBUILDING STATE WILL
URGE REPEAL OF THE BOAT TAX AS OF JAN 1 1992

CORPORATE HOARDS OF EARNINGS WOULD BE TAXED MORE HEAVILY UNDER THE BILLS

THE ACCUMULATEDEARNINGS TAX A PENALTY ON UNREASONABLE HOLDINGS WAS
ENACTED WHEN PERSONAL TAX RATES WERE FAR ABOVE CORPORATE RATES IT IS MEANT
TO DETER COMPANIES FROM RETAINING EARNINGS JUST SO SHAREHOLDERS MAY AVOID
TAXES ON DIVIDENDS THE HOUSE AND SENATE BILLS WOULD RAISE THE PENALTY TAX
TO 396 FROM THE CURRENT 28 KEEPING IT TIED TO PERSONAL RATES

THE PROPOSAL REMINDS COMPANIES WHY THEY MUST BE ABLE TO DOCUMENT REASONABLE
NEEDS TO RETAIN EARNINGS INCLUDING WORKING CAPITAL NOTES ROBERT ROSEN OF
ERNST & YOUNG CPAS BUT BEYOND THAT HE ARGUES THERE IS NO GOOD REASON FOR
THE PENALTY WHICH WORKS AS A THIRD LEVEL OF CORPORATE TAX WHEN THE SPREAD
BETWEEN PERSONAL AND CORPORATE RATES IS SO NARROW THE BILLS WOULD RAISE THE
TOP CORPORATE RATE TO 35 FROM 34

THE IRS HAS MADE ACCUMULATED EARNINGS A HOT ISSUE IN CORPORATE AUDITS IN
RECENT YEARS ROSEN SAYS

A CHARITY THAT OFFERS A DINNER OR SOMETHING ELSE OF VALUE WOULD HAVE TO TELL
DONORS JUST HOW MUCH OF A RELATED GIFT IS DEDUCTIBLE UNDER THE HOUSE BILL
THE SENATE BILL WOULD REQUIRE SUCH DISCLOSURE ONLY IF THE DONOR GAVE MORE
THAN 75

PRIVATE LENDERS AND US AGENCIES SUCH AS FEDERAL DEPOSIT INSURANCE CORP
AND RESOLUTION TRUST CORP WOULD HAVE TO REPORT TO THE IRS ANY FORGIVENESS
OF DEBT OF 600 OR MORE UNDER BOTH BILLS

THE MAXIMUM PAY ON WHICH A COMPANY MAY BASE ITS CONTRIBUTION TO AN
EMPLOYEE'S PENSION ACCOUNT WOULD BE CUT TO 150000 FROM THE PRESENT
235840 AND THEN INDEXED ANNUALLY FOR INFLATION BY BOTH BILLS THE SENATE
BILL WOULD INDEX THE SUM IN 10000 STEPS AND PHASE IN THE CHANGE FOR
STATEGOVERNMENT AND UNIONIZED EMPLOYEES

BUSINESSES HOPE TO KILL REPORTS ON PAYMENTS TO CORPORATE SERVICE PROVIDERS

THE TARGET THE CLINTON PROPOSAL TO EXPAND THE REQUIREMENT THAT A BUSINESS
REPORT TO THE IRS ON ANNUAL PAYMENTS OF 600 OR MORE TO A NONCORPORATE
PROVIDER OF SERVICES AIMING AT CONCERNS THAT UNDERREPORT INCOME THE HOUSE
BILL SEEKS REPORTS ON PAYMENTS TO CORPORATIONS TOO BUT FACING BROAD
OPPOSITION SENATORS DROPPED THE ACTION FROM THEIR BILL NOW COMPANIES HOPE
TO PREVENT A REVIVAL OF THE MEASURE IN THE CONFERENCE

THE ESTIMATED REVENUE GAIN EXCEEDS 400 MILLION OVER FIVE YEARS BIG AND
SMALL BUSINESSES ARGUE THAT THE BURDENS WOULD EXCEED BENEFITS THE AMERICAN
PAYROLL ASSOCIATION REPRESENTING EXECUTIVES RESPONSIBLE FOR REPORTING
DOUBTS THE IRS COULD MAKE EFFECTIVE USE OF 250 MILLION OR MORE REPORTS A
YEAR BUT ASSISTANT TREASURY SECRETARY SAMUELS SAYS THE MEASURE IS IMPORTANT
FOR THE HEALTH OF THE VOLUNTARYCOMPLIANCE SYSTEM

SAMUELS SAYS THE IRS CAN DEAL WITH CRITICS' CONCERNS BY EXEMPTING MANY
CORPORATIONS AND MANY KINDS OF PAYMENTS FROM THE REPORTING REQUIREMENT

BRIEFS THE SENATE TAX BILL WOULD RAISE TO 3 FROM 1 THE TAXRETURN
CHECKOFF FOR PAYMENTS INTO THE PRESIDENTIAL ELECTION CAMPAIGN FUND  
BOTH TAX BILLS WOULD RAISE THE WITHHOLDINGTAX RATE ON BONUSES TO 28 FROM
20 9307140048 930714 BUSINESS BRIEF CONTINUUM CO HOLDERS APPROVE
ISSUANCE OF STOCK FOR PAXUS PURCHASE

CONTINUUM CO AUSTIN TEXAS SAID SHAREHOLDERS AT A SPECIAL MEETING
APPROVED ITS PROPOSAL TO ISSUE AS MANY AS 41 MILLION COMMON SHARES FOR ITS
ACQUISITION OF PAXUS CORP OF SYDNEY AUSTRALIA IN AN EXCHANGE OF STOCK

THE CONSULTING AND COMPUTER SERVICES COMPANY HAS SAID IT WILL EXCHANGE
00559 SHARE FOR EACH OF PAXUS' 69 MILLION SHARES OUTSTANDING

IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CONTINUUM WAS
QUOTED AT 1725 DOWN 125 CENTS THAT GIVES THE TRANSACTION AN INDICATED
VALUE OF 665 MILLION

THE ACQUISITION ALSO DEPENDS ON AT LEAST 90 OF PAXUS' SHARES BEING
TENDERED CONTINUUM SAID HOLDERS OF MORE THAN 80 OF THE SHARES HAVE
ACCEPTED THE OFFER PAXUS IS ALSO A CONSULTING AND COMPUTER SERVICES
COMPANY 9307140047 930714 TECHNOLOGY & HEALTH MEDICALDEVICE FIRMS
SEEK USER FEES' TO EXPEDITE FDA PRODUCT APPLICATIONS  BY THOMAS
M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL

MEDICALDEVICE INDUSTRY EXECUTIVES ARE URGING THAT FEDERAL USER FEES BE
LEVIED ON DEVICE COMPANIES TO PAY FOR NEW FOOD AND DRUG ADMINISTRATION
STAFFERS WHO COULD EXPEDITE APPROVAL OF NEW PRODUCTS

THE INDUSTRY MADE UP PRIMARILY OF MANY SMALL CONCERNS PREVIOUSLY HAS
OPPOSED THE IDEA OF USER FEES BECAUSE OF THE ADDED COST BUT THE LENGTHENING
BACKLOGS OF PRODUCTS UNDER FDA REVIEW APPARENTLY HAS CHANGED MINDS

THE EFFORT MIRRORS AN EARLIER PUSH BY BIG PHARMACEUTICAL MAKERS THAT LED
CONGRESS EARLY THIS YEAR TO TAX THEM 36 MILLION TO PAY FOR 100 NEW FDA
EMPLOYEES TO EVALUATE NEW DRUGS FOR NEARLY A YEAR

THE HOUSE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS IN MAY CONCLUDED THAT
EXCESSIVE AND INTOLERABLE DELAYS HAD LED TO A BACKLOG IN WHICH MORE THAN
1100 NEWDEVICE APPLICATIONS WERE PENDING AT THE FDA

THE SUBCOMMITTEE CHAIRED BY REP JOHN DINGELL D MICH CALLED FOR
ESPECIALLY SPEEDY FDA EVALUATIONS OF ANY NEW DEVICES THAT ARE POTENTIALLY
LIFESAVING A SPOKESMAN FOR REP DINGELL SAID THE CONGRESSMAN ENDORSES USER
FEES FOR DEVICE MAKERS AND THAT THIS EFFORT MIGHT BE SOMETHING OF A REPEAT
OF WHAT HAPPENED WITH PHARMACEUTICALS

MINNEAPOLISBASED MEDTRONIC INC THE WORLD'S LARGEST MAKER OF CARDIAC
PACEMAKERS AND THE LARGEST US MEDICAL DEVICE CONCERN IS LEADING THE
CHARGE FOR EXPEDITED APPROVALS IT IS URGING KEY CONGRESSMEN TO CONSIDER
VARIOUS CHANGES TO SPEED UP THE FDA'S DEVICE APPROVAL PROCESS 
INCLUDING THE INSTITUTION OF LEVIES ON MANUFACTURERS TO PAY FDA SALARIES

WILLIAM W GEORGE MEDTRONIC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID
HE SUPPORTS THE NOTION OF PAYMENTS BY INDUSTRY IF THEY ARE DEVOTED SOLELY
TO REDUCING THE BACKLOG OF NEW PRODUCTS UNDER FDA REVIEW

IT ISN'T KNOWN HOW MUCH THE USERS FEES WOULD COST OR HOW THEY WOULD BE
LEVIED BUT INDUSTRY EXPERTS SAID THEY PROBABLY WOULD BE LOWER THAN THE
AMOUNTS PAID BY THE PHARMACEUTICAL CONCERNS WHETHER THE DEVICE MAKERS COULD
PASS ON THE FEES IN HIGHER PRICES REMAINS TO BE SEEN

OTHER INDUSTRY EXECUTIVES WHO SAID THEY SUPPORT THE USERFEE CONCEPT
INCLUDE STANLEY LAPIDUS PRESIDENT OF CYTYC CORP OF MARLBOROUGH MASS
WHICH MAKES PAP SMEARRELATED DEVICES AND C RAYMOND LARKIN JR PRESIDENT
AND CHIEF EXECUTIVE OFFICER OF NELLCOR INC A HAYWARD CALIF CONCERN THAT
MAKES PULSE OXIMETERS THAT MEASURE PATIENTS' OXYGEN LEVELS

THE MEDICALDEVICE TRADE GROUP THE HEALTH INDUSTRY MANUFACTURERS
ASSOCIATION LONG HAD OPPOSED SUCH REVENUERAISING MEASURES HOWEVER HIMA
RECENTLY SAID IT WOULD CONSIDER THE FEES IF THEY'RE PART OF AN OVERALL
PROGRAM TO REVAMP AND SPEED UP THE APPROVAL PROCESS BY FDA A HIMA POLL
RECENTLY FOUND THAT 85 OF ITS MEMBERS ENDORSE SUCH FEES

MESSRS GEORGE LARKIN AND LAPIDUS ALL SAID THE RECENT APPOINTMENT OF BRUCE
BURLINGTON AS HEAD OF THE FDA'S CENTER FOR DEVICES CONVINCED THEM THE AGENCY
ALSO IS PUSHING FOR A FASTER REVIEW PROCESS THEY SAID DR BURLINGTON HAS
CALLED FOR QUICKER EVALUATIONS OF NEW PRODUCTS

FDA OFFICIALS YESTERDAY DECLINED COMMENT ON THE IDEA DR BURLINGTON WHO
WAS ON VACATION COULDN'T BE REACHED 9307140046 930714 CREDIT MARKETS 
TAXABLE NOTE IS PRODUCED WITH YIELD BELOW THAT OF COMPARABLE US DEBT 
 BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK STRONG INVESTOR DEMAND AND AGGRESSIVE UNDERWRITING COMBINED TO
PRODUCE A RARITY IN THE US BOND MARKETS TAXABLE NOTES YIELDING LESS THAN
COMPARABLE US TREASURYS

THE TENNESSEE VALLEY AUTHORITY SOLD 150 MILLION OF TWOYEAR NONCALLABLE
NOTES TO A GROUP OF DEALERS LED BY FIRST BOSTON CORP THE NOTE WAS PRICED
YESTERDAY MORNING AT PAR TO YIELD 3995 THE SAME AS THE TWOYEAR TREASURY
NOTE AT THE TIME BUT BY LATE YESTERDAY HOLDERS OF THE NOTE FOUND
THEMSELVES OWNING A TWOYEAR NOTE YIELDING LESS THAN THE TREASURY'S TWOYEAR
NOTE WHOSE YIELD ROSE TO 401 BY DAY'S END FROM 396 MONDAY

MEANWHILE MOST OTHER TREASURY SECURITIES ENDED WITH MODEST LOSSES WITH THE
EXCEPTION OF THE BENCHMARK 30YEAR TREASURY BOND WHICH ROSE 1/8 POINT OR
125 FOR A BOND WITH A 1000 FACE VALUE TO 106 19/32 ITS YIELD WHICH
MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO A NEW 16YEAR LOW
OF 661 DOWN FROM 662 MONDAY

NEWS OF LOWER INFLATION IN JUNE FAILED TO ENERGIZE THE MARKET YESTERDAY
BECAUSE IT WAS IN LINE WITH EXPECTATIONS THAT HAD ALREADY BEEN FACTORED INTO
THE MARKET THE GOVERNMENT REPORTED A 03 DECLINE IN THE PRODUCER PRICE
INDEX FOR THE MONTH

THE MARKET GOT WHAT IT WAS HOPING TO GET IN TERMS OF A GOOD PRODUCER PRICE
INDEX NUMBER AND THEN WENT BACK TO SLEEP SAID CARY LEAHEY AN ECONOMIST AT
LEHMAN BROTHERS

CONTRIBUTING TO THE WEAK TONE SHOWN BY THE TREASURY MARKET WAS SOME
NERVOUSNESS ABOUT THE JUNE CONSUMER PRICE INDEX WHICH IS SLATED TO BE
RELEASED TODAY

BUT THERE WAS LITTLE NERVOUSNESS AMONG UNDERWRITERS BIDDING FOR THE TVA
TWOYEAR NOTES IN THEIR COMPETITIVE OFFERING YESTERDAY ACCORDING TO THOSE
FAMILIAR WITH THE BIDDING MOST OF THE BIDS CAME WITHIN 001 TO 0005
PERCENTAGE POINT OF EACH OTHER ACCORDING TO AN OFFICIAL AT FIRST BOSTON
THERE WAS GREAT INTEREST IN THE ISSUE FROM INVESTORS BECAUSE IT WAS
NONCALLABLE SHORTTERM MODESTLY SIZED AND FROM A RELATIVELY INFREQUENT
ISSUER BUT BY DAY'S END NOT ALL OF THE ISSUE HAD BEEN SOLD HE SAID

BECAUSE TVA IS CONSIDERED A GOVERNMENT AGENCY WITH THE IMPLICIT BACKING OF
THE US GOVERNMENT ITS DEBT IS UNRATED AND OFTEN COMES AT VERY NARROW
YIELD SPREADS TO COMPARABLE TREASURYS BUT THE LOW YIELD ON YESTERDAY'S
OFFERING WAS STILL A SURPRISE WE EXPECTED IT TO BE AGGRESSIVELY PRICED
SAID KATHY J WHITE TVA'S TREASURER BUT WE WERE PLEASANTLY SURPRISED BY
THE STRENGTH OF DEMAND

ACCORDING TO MS WHITE YESTERDAY'S OFFERING IS PART OF A 15 BILLION
PROGRAM OF BORROWING MEDIUMTERM NOTES SINCE LAUNCHING THE PROGRAM LAST
MONTH TVA HAS BORROWED A TOTAL OF 245 MILLION OF NOTES MATURING IN TWO TO
FIVE YEARS

EVEN BY TVA'S STANDARDS THE YIELD ON THE NOTES SOLD YESTERDAY WAS EXTREMELY
LOW BEFORE THE START OF THE AGENCY'S MEDIUMTERM NOTE PROGRAM THE
NARROWEST YIELD SPREAD OVER COMPARABLE TREASURYS FOR A NEW TVA DEBT
OFFERINGMATURING IN TWO YEARS OR MORE WAS 015 PERCENTAGE POINT THAT
WAS FOR A 1 BILLION ISSUE OF THREEYEAR NOTES CALLABLE IN ONE YEAR WHICH
WAS SOLD LAST SEPTEMBER

ONLY ABOUT 600 MILLION OF OTHER NEW CORPORATE SECURITIES WERE SOLD
YESTERDAY TWO OF THEM COMING AS YANKEE BONDS YANKEES ARE
DOLLARDENOMINATED BONDS ISSUED IN THE US BY FOREIGN ENTITIES

ACTIVITY IN THE INVESTMENTGRADE SECONDARY MARKET WAS LIGHT AND MOST ISSUES
ENDED UNCHANGED IN PRICE LIKEWISE TRADERS SAID TRADING OF SEASONED
JUNKBOND ISSUES WAS MUTED WITH FEW PRICE CHANGES

THE JUNK BONDS OUTSTANDING OF RH MACY & CO CONTINUED THEIR RECENT CLIMB
THE 1450 SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 ENDED YESTERDAY
AT 35 UP FROM 21 ON MAY 27 A TRADER SAID THE BONDS ARE RATED CA BY
MOODY'S INVESTORS SERVICE INC AND SINGLED BY STANDARD & POOR'S CORP

NOVA SCOTIA BECAME THE LATEST CANADIAN PROVINCE TO FIND PLENTY OF INVESTORS
WILLING TO OVERLOOK BUDGET PROBLEMS IT HAD NO PROBLEM SELLING 300 MILLION
OF 20YEAR DEBENTURES AT 9896 TO YIELD 735 A SPREAD OF 072 PERCENTAGE
POINT ABOVE THE COMPARABLE US TREASURY

THE NONCALLABLE ISSUE RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY
S&P WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO

THE OTHER YANKEE ISSUE CAME FROM SWEDISH BALLBEARING MANUFACTURER SKF AB
IT OFFERED 100 MILLION OF 10YEAR SENIOR NOTES AT 9960 TO YIELD 7683 A
SPREAD OF 195 PERCENTAGE POINTS ABOVE THE US TREASURY 10YEAR NOTE

RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE NONCALLABLE ISSUE WILL BE
SOLD THROUGH MERRILL LYNCH

MORE THAN 1 BILLION IN NEW MUNICIPAL BOND ISSUES WERE PRICED YESTERDAY
WHILE CALIFORNIA ANNOUNCED THAT IT WOULD OFFER 2 BILLION IN FIXEDRATE
REVENUE ANTICIPATION NOTES NEXT WEDNESDAY

PRICES OF MUNICIPAL BONDS IN THE SECONDARY MARKET ENDED MOSTLY UNCHANGED

THE CALIFORNIA STATE TREASURER KATHLEEN BROWN SAID THE RANS ARE EXPECTED
TO CARRY A 325 COUPON WITH YIELDS THAT RANGE FROM 260 TO 275

CALIFORNIA ALSO EXPECTS TO OFFER 12 BILLION IN REVENUE ANTICIPATION
WARRANTS FROM DECEMBER 1993 TO MARCH 1994 OFFICIALS SAID ITS 2 BILLION
OUTSTANDING OF RAWS ISSUED LAST MONTH WILL BE REDEEMED DEC 23 1993 WITH
CASH THAT'S A KEY CREDIT POINT FOR INVESTORS CALIFORNIA WON'T HAVE TO
RETIRE THAT ISSUE BY ROLLING THE DEBT INTO A NEW BORROWING

CALIFORNIA OFFICIALS SAID THEY EXPECT MAXIMUM EXTERNAL BORROWING TO BE 4
BILLION IN FISCAL 19931994 DOWN FROM 55 BILLION IN THE YEAR ENDED JUNE
30

CALIFORNIA'S BUDGET FOR THE CURRENT FISCAL YEAR WAS BALANCED ON A TIMELY
BASIS BY THE STATE LEGISLATURE A SIGNIFICANT CHANGE FROM THE PRIOR YEAR

YESTERDAY'S LARGEST NEW OFFER WAS A 6949 MILLION ISSUE OF WASHINGTON
PUBLIC POWER SUPPLY SYSTEM REFUNDING REVENUE BONDS SERIES 1993B FOR
NUCLEAR PROJECTS NOS 1 2 AND 3 VIA A GROUP LED BY GOLDMAN SACHS & CO

PRICES OF MORTGAGE SECURITIES ENDED SLIGHTLY LOWER

IN SECONDARY TRADING 65 ISSUES FOR AUGUST DELIVERY FINISHED UNCHANGED AT
99 25/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES FINISHED 1/32
LOWER AT 99 21/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES
FINISHED 1/32 LOWER AT 99 17/32

IN THE DEALSTARVED ASSETBACKED MARKET PLAYERS ARE ANXIOUSLY AWAITING A
1 BILLION OFFERING OF FORD MOTOR CO AUTOMOBILE LOANBACKED SECURITIES THE
ISSUE TO BE LED BY FIRST BOSTON CORP IS EXPECTED TO BE LAUNCHED TODAY 
ACCORDING TO MARKET SOURCES

THE TRANSACTION ONLY THE SECOND ASSETBACKED DEAL OF THIS QUARTER AND THE
FIRST OF ANY SIZE IS SAID TO HAVE A 17YEAR AVERAGE LIFE

GIVEN THE PRICE LEVEL OF AUTO SECURITIES TRADING IN THE SECONDARY MARKET
PARTICIPANTS BELIEVE THE ISSUE WILL PRICE WITH A YIELD IN THE RANGE OF 040
PERCENTAGE POINT ABOVE THE TREASURY'S TWOYEAR NOTE

THOMAS D LAURICELLA AND JOHN HUGHES CONTRIBUTED TO THIS ARTICLE
9307140045 930714 WALGREEN RECALLS CAPSULES AFTER CANDY CORN INCIDENT

DEERFIELD ILL WALGREEN CO SAID IT HAS ORDERED A RECALL OF ITS COLD
CAPSULES FROM STORES THROUGHOUT THE US AFTER A PURCHASER REPORTED FINDING
CANDY CORN INSTEAD OF MEDICINE IN A CONTAINER SHE BOUGHT

THE DRUGSTORE CONCERN SAID IT RECALLED ALL OF THE 10PILL AND 30PILL
CONTAINERS OF WALGREEN COLD CAPSULES AT ITS OUTLETS AROUND THE COUNTRY

A WOMAN WHO BOUGHT THE PRODUCT AT THE 4 N STATE ST STORE IN CHICAGO LATE
MONDAY SAID SHE FOUND CANDY CORN IN FOIL WRAPPING INSIDE THE BOX WALGREEN
SAID THE ONE INCIDENT IS THE ONLY ONE LEADING IT TO WITHDRAW THE MEDICATION
FROM ITS SHELVES AND THAT IT WAS DOING SO ONLY AS A PRECAUTIONARY MEASURE
THE WITHDRAWAL WAS ORDERED YESTERDAY MORNING

THE WALGREEN COLD MEDICINE IS ONE OF A WIDE RANGE OF SOCALLED PRIVATELABEL
MEDICATIONS SOLD AT WALGREEN UNDER THE WALGREEN NAME IN COMPETITION WITH
BRANDNAME OVERTHECOUNTER PRODUCTS THE COLD CAPSULES ARE PRODUCED FOR
WALGREEN BY PERRIGO CO OF ALLEGAN MICH WALGREEN OFFICIALS SAID PERRIGO
CONTACTED THE FEDERAL FOOD AND DRUG ADMINISTRATION ABOUT THE COMPLAINT
9307140044 930714 ECONOMY DAMAGE FROM MIDWEST RAIN FLOODING MAY
SURPASS 5 BILLION ECONOMISTS SAY  BY SCOTT KILMAN AND CHRISTINA
DUFF STAFF REPORTERS OF THE WALL STREET JOURNAL

CHICAGO ECONOMISTS ARE ESTIMATING THAT DAMAGE FROM RECORD RAIN AND
FLOODING IN THE MIDWEST MIGHT TOP 5 BILLION POSSIBLY DEPRESSING RETAIL
SALES AND INCREASING UNEMPLOYMENT ACROSS THE REGION THIS SUMMER

BUT THE EARLY CONSENSUS IS THAT THE FALLOUT SO FAR ISN'T ENOUGH TO DERAIL
THE SLOW ECONOMIC RECOVERY IN THE MIDWEST AND WON'T STUNT THE NATIONAL
GROWTH RATE INDEED REBUILDING FROM THE FLOODS COULD LIFT THE CONSTRUCTION
INDUSTRY LATER THIS YEAR

WE MIGHT SEE A SLIGHTLY WEAKER THIRDQUARTER GROWTH RATE FOR THE NATION
THAN IT WOULD HAVE BEEN AND THEN A SLIGHTLY STRONGER FOURTH QUARTER SAID
ROBERT SCHNORBUS A SENIOR BUSINESS ECONOMIST AT THE FEDERAL RESERVE BANK OF
CHICAGO

NATURAL CALAMITIES RARELY HAVE A LASTING IMPACT ON THE NATIONAL ECONOMY
HURRICANE ANDREW IN AUGUST 1992 FOR EXAMPLE CAUSED THREE TIMES AS MUCH
DAMAGE AS THE MIDWEST FLOODS HAVE DONE SO FAR AND PROBABLY SHAVED THE
GROWTH RATE OF THE 6 TRILLION US ECONOMY BY ROUGHLY THREETENTHS OF A
PERCENTAGE POINT SAID DOUGLAS LEE CHIEF ECONOMIST AT NATWEST SECURITIES IN
WASHINGTON

BEFORE THE WET WEATHER UNEMPLOYMENT IN THE MIDWEST WAS LOWER THAN THE 7
NATIONAL RATE AND RETAIL SALES WERE OUTPACING THE NATIONAL AVERAGE IT WILL
BE WEEKS AND IN SOME CASES MONTHS BEFORE ECONOMISTS GET HARD DATA ON WHAT
IS HAPPENING TODAY IN THE MIDWEST BUT ECONOMISTS SAID THE REGION IS
UNLIKELY TO EMERGE FROM THE FLOODS WITHOUT FEELING SOME SORT OF ECONOMIC
FALLOUT

IT'S ALREADY CLEAR THAT THERE WILL BE SEVERAL TYPES OF ECONOMIC DAMAGE
SAID MR LEE BUT IT IS HARD TO DO ANY QUANTIFYING YET

TALLYING THE IMPACT OF THE EXCESSIVE RAINFALL IS DIFFICULT IN PART BECAUSE
OF ITS DURATION AND SCOPE THE DELUGE IS CAUSING HARDSHIP FROM SOUTH DAKOTA
FARMS TO ILLINOIS RIVER TOWNS AN AREA STRETCHING MORE THAN 700 MILES AND
THE LONG STRING OF WET MONTHS HASN'T ENDED YET THE WORSTCASE SCENARIO PUTS
DAMAGES AT 10 BILLION WHICH WOULD RIVAL THE 1988 DROUGHT IN THE MIDWEST

THE WET WEATHER SO FAR ISN'T EXPECTED TO DESTROY NEARLY AS MANY CROPS AS THE
1988 DROUGHT AND THUS FOOD PRICES AREN'T EXPECTED TO RISE AS MUCH AS THEY
DID THEN HOWEVER THE POOR CONDITION OF THE CORN AND SOYBEAN CROPS IN THE
MIDWEST ALREADY IS PROMPTING SOME ECONOMISTS TO RAISE THEIR FOODINFLATION
FORECASTS FOR THIS YEAR BY ROUGHLY HALF OF A PERCENTAGE POINT TO BETWEEN 3
AND 35

FOR TWO YEARS THE SLOW PACE OF FOODPRICE INCREASES HAS HELPED TO HOLD DOWN
GENERAL INFLATION BUT THE HIGHER ESTIMATES SIGNAL THAT FOOD INFLATION WILL
PROBABLY PACE PRICE INCREASES THROUGHOUT THE ECONOMY

THE RECORD FLOODS ARE CAUSING MORE DISRUPTION TO THE NATIONAL TRANSPORTATION
SYSTEM THAN EITHER THE 1988 DROUGHT OR HURRICANE ANDREW RAILROAD BARGE AND
TRUCK TRANSPORTATION IS SNARLED AND HIGH WATER HAS CLOSED SOME FACTORIES

ECONOMISTS AREN'T CLEAR ON HOW MUCH TRANSPORTATION COSTS WILL RISE AS A
RESULT OF THE CURRENT BOTTLENECKS THEY ALSO DON'T KNOW WHETHER THOSE HIGHER
COSTS WOULD BE PASSED ON TO CONSUMERS MOREOVER ECONOMISTS ARE STRUGGLING
TO COUNT THE NUMBER OF CLOSED FACTORIES AND GAUGE THE EFFECT OF THE LOST
OUTPUT

MAJOR RETAIL CENTERS SUCH AS MINNEAPOLIS KANSAS CITY MO ST LOUIS AND
CHICAGO HAVE ESCAPED THE BRUNT OF THE DAMAGE BUT ECONOMISTS EXPECT RETAIL
SALES TO SUFFER THE MOST IN SMALLER FARMBELT CITIES AND TOWNS SUCH AS MASON
CITY IOWA AND AUSTIN MINN

THE WET WEATHER IS HITTING SOME POCKETS PARTICULARLY HARD FARMERS WHO LIVE
IN A SWATH BETWEEN SIOUX FALLS SD AND LA CROSSE WIS MIGHT LOSE 15
BILLION FROM THEIR CROPS THIS YEAR WHICH WOULD CUT FARM REVENUE IN THAT
AREA BY ROUGHLY 20 ESTIMATED EDWARD LOTTERMAN AN AGRICULTURAL ECONOMIST
AT THE FEDERAL RESERVE BANK OF MINNEAPOLIS

PAUL FISHER SALES MANAGER FOR OTTERSON FORD LINCOLN MERCURY INC IN
WORTHINGTON MINN SAID FARMERS ARE CANCELING PICKUP TRUCK ORDERS AND
SALES OF ALL VEHICLES HAVE DROPPED BY ABOUT 50 SINCE THE WET WEATHER BEGAN
TO SEND A CHILL THROUGH THE LOCAL ECONOMY

WITHOUT CROPS IT'S GOING TO BE A TOUGH WINTER MR FISHER SAID

SALES ARE CLIMBING AT SOME WORTHINGTON STORES AS FLOOD VICTIMS REPLACE
APPLIANCES AND CARPETS BUT EVEN THESE RETAILERS EXPECT BUSINESS TO STAGNATE
AS FARMERS HARVEST SMALLERTHANEXPECTED CROPS THE RURAL ECONOMY IS REALLY
GOING TO TAKE A DIVE SAID DICK RICKBEIL WHO OWNS AN APPLIANCE
ELECTRONICS AND FURNITURE STORE THERE

IN DES MOINES IOWA WHERE FLOODING HAS KNOCKED OUT THE MUNICIPAL WATER
SYSTEM CUSTOMERS DEFINITELY AREN'T LOOKING FOR FASHION TRENDS RIGHT NOW
SAID A SPOKESWOMAN FOR THE TARGET DISCOUNT CHAIN OF DAYTON HUDSON CORP
RESIDENTS ARE INSTEAD BUYING NECESSITIES SUCH AS BOTTLED WATER BEDDING
DIAPERS AND TOILETRIES

ONLY HALF OF THE 120 STORES IN THE SOUTHRIDGE MALL IN DES MOINES ARE OPEN
PEOPLE AREN'T THINKING ABOUT BUYING CLOTHES THEY WANT WATER AND FOOD
SAYS ALAN RAXTER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF
YOUNKERS INC A MIDWEST DEPARTMENT STORE CHAIN

THE FEW CUSTOMERS YOUNKERS DOES HAVE IN DES MOINES ARE BUYING UNDERWEAR
BECAUSE WITHOUT WATER THEY CAN'T DO LAUNDRY 9307140043 930714
INTERNATIONAL BRIEF CIGA SPA CONSOLIDATED DEBTS SWELLED TO 6932
MILLION ON JUNE 30

FINANCIALLY TROUBLED ITALIAN HOTEL GROUP CIGA SPA SAID AT THE ANNUAL MEETING
THAT CONSOLIDATED DEBTS TOTALED 11 TRILLION LIRE 6932 MILLION AT THE
END OF JUNE SWELLING FROM 972 BILLION LIRE AT THE END OF 1992

CIGA'S LARGEST SHAREHOLDER IS THE AGA KHAN THE SPIRITUAL LEADER OF 15
MILLION ISMAILI MUSLIMS

THE COMPANY ALSO SAID THAT FORECASTS FOR THE SECOND HALF OF 1993 WERE
SOMEWHAT DIFFICULT GIVEN THE PERSISTENCE OF THE ECONOMIC RECESSION BUT IT
ADDED THAT RESULTS FROM ITS HOTEL CHAINS COULD BE IN LINE WITH THOSE OF 1992
BY YEAR'S END IF THE TREND OF THE FIRST HALF CONTINUED IN THE FIRST HALF
OF 1993 CIGA SAID ITS HOTEL BUSINESS HAD TURNOVER OF 2068 BILLION LIRE
SLIGHTLY DOWN FROM 2176 BILLION LIRE A YEAR EARLIER

CIGA HAD A NET LOSS OF 252 BILLION LIRE IN 1992 9307140042 930714
BUSINESS BRIEF SPECIALTY PAPERBOARD INC FIRM BOISE CASCADE SUED 
OVER DATA IN PROSPECTUS

SPECIALTY PAPERBOARD INC SAID IT AND BOISE CASCADE CORP WERE SUED BY A
SHAREHOLDER SEEKING CLASSACTION STATUS IN THE US DISTRICT COURT IN
VERMONT

THE MAKER OF HEAVYWEIGHT PAPERBOARD IN BRATTLEBORO VT SAID THE SUIT
ALLEGES THE COMPANY MADE MISREPRESENTATIONS IN ITS PROSPECTUS WITH RESPECT
TO ITS INITIAL PUBLIC OFFERING IN MARCH PRIOR TO THE OFFERING BOISE
CASCADE OWNED 30 OF SPECIALTY PAPERBOARD

THE COMPANY'S STOCK PRICE HAS TUMBLED SINCE IT ANNOUNCED IN JUNE THAT ITS
SECONDQUARTER EARNINGS FROM CONTINUING OPERATIONS WOULD BE BELOW ANALYSTS'
ESTIMATES THAT HAD RANGED FROM 38 CENTS TO 42 CENTS A SHARE ITS SHARES
WHICH SOLD AT 13 APIECE IN THE INITIAL OFFERING WERE AT 775 UNCHANGED IN
COMPOSITE TRADING YESTERDAY ON THE OVERTHECOUNTER MARKET

SPECIALTY PAPERBOARD SAID THAT SEVERAL COMPANY OFFICERS AND DIRECTORS WERE
ALSO NAMED AS DEFENDANTS IN THE SUIT ALEX KWADER THE COMPANY'S PRESIDENT
SAID WE WILL FIGHT THESE UNWARRANTED CLAIMS VIGOROUSLY AND BELIEVE THAT WE
WILL PREVAIL 9307140041 930714 COX IS OUSTED AS FIRST BOSTON CHIEF
EXECUTIVE  BY MICHAEL SICONOLFI AND RANDALL SMITH STAFF REPORTERS
OF THE WALL STREET JOURNAL

NEW YORK ARCHIBALD COX JR WAS OUSTED AS PRESIDENT AND CHIEF EXECUTIVE
OFFICER OF FIRST BOSTON CORP

THE MANAGEMENT SHAKEUP WHICH STUNNED WALL STREET EXECUTIVES COMES AS THE
CS FIRST BOSTON GROUP INC UNIT WRESTLES WITH A CONTINUING EXODUS OF
INVESTMENT BANKERS AND TRADERS PEOPLE FAMILIAR WITH THE FIRM SAID THE
DEPARTURE OF MR COX 53YEAROLD SON OF FORMER WATERGATE PROSECUTOR
ARCHIBALD COX WAS FORCED AND IS LIKELY TO LEAD TO FURTHER DEPARTURES AT
THE BIG INVESTMENT BANK CS FIRST BOSTON IS A UNIT OF CS HOLDING WHICH ALSO
OWNS GIANT SWISS BANK CREDIT SUISSE

JOHN M HENNESSY CS FIRST BOSTON CHIEF EXECUTIVE WILL TEMPORARILY ASSUME
MR COX'S DUTIES WHEN HE FORMALLY DEPARTS ON SEPT 1 THE FIRM SAID THE
ELEVATION OF MR HENNESSY 57 FOLLOWS A RADICAL STRATEGIC SHIFT IN JUNE
THAT CUT INTO MR COX'S POWER IN THAT MOVE CS FIRST BOSTON EFFECTIVELY
ABANDONED ITS FIVEYEAR BID TO BECOME A GLOBAL TRIUMVIRATE OF
INVESTMENTBANKING UNITS INSTEAD THE COMPANY PLANS TO CONSOLIDATE THE
UNITS AND BE MANAGED ALONG PRODUCT LINES MR COX WAS SLATED TO RUN THE
NEWLY ORGANIZED FIRM'S STOCK GROUP AND COHEAD ITS INVESTMENTBANKING
OPERATIONS

YOU DON'T NEED A GEOGRAPHIC CEO IF YOU'RE ORGANIZED ALONG PRODUCT LINES
SAYS WILLIAM E MAYER A FORMER FIRST BOSTON CHIEF EXECUTIVE AND CURRENT
DEAN OF THE BUSINESS SCHOOL AT THE UNIVERSITY OF MARYLAND AT COLLEGE PARK

YESTERDAY'S MANAGEMENT SHAKEUP IS THE MOST SIGNIFICANT AT THE FIRM SINCE THE
MERGER OF FIRST BOSTON AND ITS EUROPEAN AFFILIATE IN 1988 BACK THEN WHEN
THE TWO MERGED TO CREATE CS FIRST BOSTON THE FIRM BOASTED THAT IT WAS A
TRULY GLOBAL INVESTMENT BANK WITH CLOSELY LINKED UNITS IN NEW YORK FIRST
BOSTON CORP LONDON FINANCIERE CREDIT SUISSEFIRST BOSTON AND TOKYO CS
FIRST BOSTON PACIFIC INC BUT COORDINATION AMONG THE UNITS HAS BEEN UNEVEN

FIRST BOSTON IS ONE OF A HALF DOZEN LEADING WALL STREET SECURITIES FIRMS
THAT ADVISE MAJOR CORPORATIONS ON MERGERS AND SELL AND TRADE STOCKS AND
BONDS BUT IT HAS SUFFERED THE DEPARTURES OF DOZENS OF SENIOR INVESTMENT
BANKERS THIS YEAR MANY OF WHOM LEFT OVER WHAT THEY REGARDED AS SUBPAR
COMPENSATION

WHAT HELPED SEAL MR COX'S FATE WERE RELATIVELY MEAGER 1992 PAY PACKAGES
THAT ANGERED MANY TRADERS AND BANKERS WHO HAVE SINCE DEFECTED FIRST BOSTON
EXECUTIVES SAID NEW YORK BANKERS WERE PARTICULARLY IRATE BECAUSE ALTHOUGH
THEIR UNIT HAD SOLID PROFIT THE FIRM'S BOTTOM LINE AND THEIR
COMPENSATION WERE DRAGGED DOWN BY TRADING LOSSES BY THE LONDON UNIT LATE
LAST YEAR MR COX'S CREDIBILITY WAS HURT ACCORDING TO SEVERAL PAST AND
CURRENT FIRST BOSTON EMPLOYEES BECAUSE HE HAD PROMISED IN EARLY 1992 THAT
PAY FOR THAT YEAR WOULD IMPROVE BUT IT DIDN'T

THE '92 COMPENSATION WAS THE LAST STRAW THERE WERE A TREMENDOUS NUMBER
OF QUITE GOOD PEOPLE WHO BAILED OUT SAID DAVID BATTEN A FORMER FIRST
BOSTON EXECUTIVE NOW WITH LAZARD FRERES & CO

EVEN THOUGH CS FIRST BOSTON HAS HAD SOLID PROFITS THIS YEAR ITS EARNINGS
HAVE LAGGED BEHIND THOSE OF RIVALS MERRILL LYNCH & CO MORGAN STANLEY GROUP
INC AND GOLDMAN SACHS & CO

MR HENNESSY HAD BEEN SUCCEEDED BY MR COX AS FIRST BOSTON CORP CHIEF
EXECUTIVE IN SEPTEMBER 1990 BUT CONTINUED IN HIS ROLE AS HEAD OF CS FIRST
BOSTON GROUP ACTIVE IN REPUBLICAN POLITICS MR HENNESSY HAD LONG PINED FOR
A POSITION IN WASHINGTON BUT WHEN GEORGE BUSH WAS DEFEATED IN NOVEMBER MR
HENNESSY SLOWLY STARTED REASSERTING HIMSELF AT FIRST BOSTON PEOPLE FAMILIAR
WITH THE FIRM SAID

AT A WORLDWIDE MANAGEMENT MEETING IN BOCA RATON FLA A FEW MONTHS BACK
FIRST BOSTON MANAGING DIRECTORS WERE TAKEN ABACK WHEN MR HENNESSY NOT
MR COX RAN THE SHOW EVERYONE LOOKED AT EACH OTHER AND SAID WHAT'S
GOING ON HERE' SAID A WALL STREET EXECUTIVE FAMILIAR WITH THE FIRM

MESSRS COX AND HENNESSY DECLINED TO COMMENT IN A STATEMENT RELEASED LATE
YESTERDAY MR COX SAID HE IS RESIGNING TO SEEK OTHER PERSONAL INTERESTS
HE ADDED I FEEL STRONGLY THAT DURING MY TENURE AT FIRST BOSTON I HAVE MADE
A MEANINGFUL CONTRIBUTION TO THE ORGANIZATION

MR HENNESSY SAID IN THE STATEMENT THAT MR COX HAS DONE A SUPERB JOB IN
HIS THREE YEARS HERE AND LED A DIFFICULT AND SUCCESSFUL TURNAROUND AT FIRST
BOSTON WE MUST RESPECT THE PERSONAL REASONS BEHIND HIS DECISION TO RESIGN
AND WISH HIM THE VERY BEST

BEFORE FIRST BOSTON MR COX HAD BEEN A SENIOR INTERNATIONAL EXECUTIVE AT
MORGAN STANLEY THE SIXFOOT SEVENINCH NEW ENGLANDER HAD BECOME WELL KNOWN
IN LONDON FOR HIS UNUSUAL HABIT OF COMMUTING ON A BICYCLE HE LED MORGAN
STANLEY'S RISE TO UPPER RANKS OF INVESTMENT BANKS IN THE EUROMARKETS

IT ISN'T CLEAR HOW LONG MR HENNESSY WILL HOLD THE NEW POST AMONG THE
POTENTIAL EVENTUAL SUCCESSORS FOR THE TOP FIRST BOSTON SPOT ARE ALLEN WHEAT
HEAD OF FIXED INCOMES AND OF CREDIT SUISSE FINANCIAL PRODUCTS THE FIRM'S
DERIVATIVESECURITIES OPERATION

THE WAY YOU RAISE CAPITAL NOW IS TO TAKE THE RISK OUT OF CAPITALRAISING
AND YOU DO THAT BY DERIVATIVES SAID MICHAEL DUVAL A FORMER FIRST BOSTON
EXECUTIVE WHO RUNS A NEW YORK INVESTMENTBANKING BOUTIQUE THAT'S WHAT'S
SELLING NOW ON WALL STREET HE SAID THE SIZZLING DERIVATIVES MARKETPLACE
HAS LED TO HEIGHTENED POWER FOR MR WHEAT MR DUVAL SAID 9307140040
930714 BUSINESS BRIEF LIMITED INC SALE OF 60 STAKE IN BRYLANE ITS
CATALOG DIVISION IS SET

LIMITED INC SAID THAT IT ENTERED AN AGREEMENT TO SELL A 60 STAKE IN ITS
BRYLANE CATALOG DIVISION WHICH CONSISTS OF THE LERNER DIRECT LANE BRYANT
DIRECT AND ROAMAN'S CATALOG OPERATIONS TO AN AFFILIATE OF LOS ANGELESBASED
INVESTMENT BANKING FIRM FREEMAN SPOGLI & CO TERMS WEREN'T DISCLOSED

THE COLUMBUS OHIO APPAREL RETAILER DECLINED TO ELABORATE SAYING THAT THE
AGREEMENT IS SUBJECT TO CERTAIN MATERIAL CONTINGENCIES AND THAT THERE IS NO
ASSURANCE A TRANSACTION WILL TAKE PLACE

FREEMAN SPOGLI HAS INTERESTS IN A VARIETY OF COMPANIES INCLUDING
SUPERMARKETS AND HOLDS A 24 STAKE IN CREDITRATING COMPANY DUFF & PHELPS
CORP

BRYLANE THE ONLY LIMITED DIVISION THAT FOCUSES ON BUDGETMINDED CONSUMERS
HAD 1992 OPERATING EARNINGS OF 42 MILLION ON SALES OF 416 MILLION
ANALYSTS HAVE ESTIMATED 9307140039 930714 ALYESKA PLANS TO SETTLE SUITS
RELATED TO OIL SPILL

ANCHORAGE ALASKA ALYESKA PIPELINE SERVICES CO HAS PROPOSED SETTLING A
BLIZZARD OF LAWSUITS STEMMING FROM ITS ROLE IN THE EXXON VALDEZ OIL SPILL
FOR 98 MILLION

THE LAWSUITS GENERALLY CHARGED THAT ALYESKA A CONSORTIUM OWNED BY EXXON
CORP IN HOUSTON AND THE OTHER BIG OIL COMPANIES THAT SHIP ALASKA CRUDE OIL
THROUGH THE TRANSALASKA PIPELINE BUNGLED ITS RESPONSE TO THE DISASTROUS
OIL SPILL WHICH RESULTED FROM THE WRECK OF THE EXXON VALDEZ SUPERTANKER IN
MARCH 1989

IT WASN'T IMMEDIATELY CLEAR IF ALL OF THE TENS OF THOUSANDS OF PLAINTIFFS IN
THE VARIOUS SUITS AGAINST ALYESKA WOULD ACCEPT THE SETTLEMENT HOWEVER
LLOYD MILLER ONE OF THE LEAD PLAINTIFF'S ATTORNEYS IN THE CASE ENDORSED
THE PROPOSAL AND NOTED THAT THE SETTLEMENT WOULDN'T AFFECT PLAINTIFFS'
PURSUIT OF EXXON WHICH OWNED THE EXXON VALDEZ SUPERTANKER AND WHICH REMAINS
A DEFENDANT IN HUNDREDS OF CIVIL SUITS

THE PROPOSED SETTLEMENT COMES AMID CONGRESSIONAL HEARINGS WHICH START TODAY
ON THE CONSORTIUM'S SAFETY AND ENVIRONMENTAL RECORD SINCE MARCH 1989
9307140038 930714 BUSINESS BRIEF NYNEX CORP UNIT ALLEGED TO USE
RATES TO RECOVER ITS DONATIONS

THE STATE ATTORNEY GENERAL'S OFFICE CHARGED THAT NEW YORK TELEPHONE PROPOSED
TO HAVE CUSTOMERS PAY FOR THE NEARLY 2 MILLION IT CONTRIBUTES TO TELEPHONE
PIONEERS OF AMERICA AN ORGANIZATION OF RETIRED TELEPHONE COMPANY EMPLOYEES

A NEW YORK STATE REGULATORY ORDER FORBIDS UTILITIES TO RECOVER CHARITABLE
CONTRIBUTIONS THROUGH THE RATE PROCESS BUT STATE ATTORNEY GENERAL ROBERT
ABRAMS SAID THAT IN A RECENT FILING NEW YORK TELEPHONE IN NEW YORK INCLUDED
THOSE COSTS IN CALCULATING ITS RATE BASE

NEW YORK TELEPHONE A UNIT OF NYNEX CORP DENIED THE CHARGES THE FUNDS IN
QUESTION AREN'T PART OF THE RATE BASE A NEW YORK TELEPHONE SPOKESMAN SAID
AND WE AREN'T REQUESTING THAT THEY BE INCLUDED IN THE RATE BASE

THE ATTORNEY GENERAL'S OFFICE FILED A PETITION WITH STATE REGULATORS
CALLING FOR CUSTOMER REFUNDS AND ASKING THAT REGULATORS IMPOSE FINES ON NEW
YORK TELEPHONE 9307140037 930714 BUSINESS BRIEF APL CORP 
BANKRUPTCY FILING IS PLANNED FOLLOWING MOVE BY CREDITORS

APL CORP SAID IT WOULD FILE FOR BANKRUPTCYLAW PROTECTION AFTER CREDITORS
TRIED TO FORCE THE COMPANY TO LIQUIDATE

THREE CREDITORS FILED A BANKRUPTCYCOURT PETITION ON JUNE 25 1993 IN MIAMI
TO LIQUIDATE THE MIAMI CABINET MAKER UNDER CHAPTER 7 OF THE US BANKRUPTCY
CODE SAID ALAN PERLMAN AN ATTORNEY REPRESENTING APL

BUT THE COMPANY HAS DECIDED TO FILE A MOTION BY JULY 20 ASKING THE COURT TO
CONVERT THAT PETITION INTO A FILING UNDER CHAPTER 11 OF THE US BANKRUPTCY
CODE UNDER WHICH APL WOULD CONTINUE TO OPERATE BUT COULD RESTRUCTURE AND
WORK OUT A PAYMENT PLAN WITH ITS CREDITORS MR PERLMAN SAID AN EXACT FIGURE
OF APL'S TOTAL DEBTS HASN'T YET BEEN DETERMINED

FOR THE YEAR ENDED SEPT 30 1992 APL REPORTED A NET LOSS OF 243 MILLION
OR 652 A SHARE ON SALES OF 679 MILLION

APL OWNS EAGLE AFFILIATES INC EVANS TEMPCON INC RIVIERA CABINETS INC
AND TENNESSE CABINET CO THE PENDING BANKRUPTCY CASE HOWEVER ONLY INVOLVES
THE PARENT APL MR PERLMAN SAID 9307140036 930714 BUSINESS BRIEF 
WESTINGHOUSE ELECTRIC CORP JOINT VENTURE IS PLANNED WITH POWER FIRM IN
CHINA

WESTINGHOUSE ELECTRIC CORP SAID IT AGREED TO FORM A JOINT VENTURE WITH
LONGYUAN POWER TECHNOLOGY EXPLOITATION CORP TO MODERNIZE STEAM TURBINE
GENERATORS IN CHINA

THE VENTURE FIRST WILL FOCUS ON 150 PLANTS IN A BID TO BOOST ELECTRICAL
GENERATION CAPACITY CHINA NEEDS 15000 MEGAWATTS A YEAR BUT PRODUCES 9000
TO 10000 MEGAWATTS WESTINGHOUSE SAID

PITTSBURGHBASED WESTINGHOUSE DECLINED TO DISCLOSE ITS INVESTMENT OR REVENUE
PROJECTIONS IT WILL OWN 50 OF THE VENTURE WITH LONGYUAN POWER WHICH WAS
SET UP BY THE CHINESE GOVERNMENT 9307140035 930714 INTERNATIONAL BRIEF 
GARANTIE MUTUELLE FNAC RETAILING SUBSIDIARY IS SET FOR OWNERSHIP CHANGE

FNAC A FRENCH BOOK RECORD AND CONSUMERELECTRONICS RETAILING CHAIN IS SET
TO CHANGE HANDS FRENCH STOCK MARKET AUTHORITIES INDICATED

FNAC'S CURRENT OWNER MUTUAL INSURER GARANTIE MUTUELLE DES FONCTIONNAIRES
SA HAS SOLD CALL OPTIONS FOR A MAJORITY OF THE RETAIL CHAIN'S CAPITAL TO
FRENCH STATEOWNED BANK CREDIT LYONNAIS SA AND TO CONGLOMERATE CIE GENERALE
DES EAUX WHICH ARE WORKING TOGETHER ON THE DEAL

THE DEAL VALUES FNAC AT ABOUT 24 BILLION FRENCH FRANCS 4066 MILLION
ACCORDING TO THE TERMS ANNOUNCED BY THE STOCK MARKET CREDIT LYONNAIS
INVESTMENT UNIT ALTUS FINANCE AND GENERALE DES EAUX CONSTRUCTION SUBSIDIARY
CIE IMMOBILIERE PHENIX HAVE TAKEN OPTIONS ON A TOTAL 5478 OF FNAC'S
CAPITAL THEY SAID THAT IF THEY EXERCISE THESE OPTIONS WITHIN THREE MONTHS
THEY WILL OFFER TO BUY ALL REMAINING SHARES AT AN EQUIVALENT PRICE OF 2928
FRANCS 49606 A SHARE FNAC SHARES WERE SUSPENDED FROM TRADING YESTERDAY
AT 2890 FRANCS A SHARE

FNAC OWNS STORES IN FRANCE AND BELGIUM FOR THE YEAR ENDED IN AUGUST IT
REPORTED GROUP NET INCOME OF 156 MILLION FRANCS ON SALES OF 83 BILLION
FRANCS 9307140034 930714 WHAT'S NEWS  BUSINESS AND FINANCE

FIRST BOSTON OUSTED ARCHIBALD COX JR ITS PRESIDENT AND CHIEF EXECUTIVE
OFFICER THE MANAGEMENT SHAKEUP WHICH STUNNED WALL STREET EXECUTIVES COMES
AS THE CS FIRST BOSTON GROUP UNIT WRESTLES WITH A CONTINUING EXODUS OF
INVESTMENT BANKERS AND TRADERS COX'S OUSTER IS LIKELY TO LEAD TO FURTHER
DEPARTURES AT THE INVESTMENT BANK JOHN HENNESSY CS FIRST BOSTON'S CHIEF
EXECUTIVE WILL TEMPORARILY ASSUME COX'S DUTIES

MEDCO CONTAINMENT SAID IT HAS BEEN IN TALKS WITH SEVERAL DRUG FIRMS
COVERING TOPICS THAT INCLUDE A POSSIBLE MERGER OR TAKEOVER THE NEWS SENT
THE MAILORDER DRUG COMPANY'S STOCK UP 1375 OR 48 TO 30125 GIVING
IT A MARKET VALUE OF 48 BILLION

GENERAL MOTORS PLANS TO HOLD PRICE INCREASES ON ITS 1994 VEHICLES TO AN
AVERAGE OF 18 WELL BELOW THE EXPECTED RATE OF INFLATION IN AN AGGRESSIVE
ATTEMPT TO RAISE SALES VOLUME

DAMAGE FROM RECORD RAIN AND FLOODING IN THE MIDWEST MIGHT TOP 5 BILLION
POSSIBLY DEPRESSING RETAIL SALES AND INCREASING UNEMPLOYMENT ACROSS THE
REGION THIS SUMMER ECONOMISTS' ESTIMATES INDICATE

THE MIDWESTERN FLOODING IS EXPECTED TO PUT MORE PRESSURE ON LENDERS TO
REQUIRE HOMEOWNERS IN VULNERABLE AREAS TO HAVE FLOOD INSURANCE

PRODUCER PRICES FELL 03 LAST MONTH THE SECOND MONTH IN A ROW OF
ENCOURAGING INFLATION DATA AND FURTHER EVIDENCE THAT THE SPURT IN PRICE
RISES EARLIER THIS YEAR WAS ONLY TEMPORARY

THE MEAGER JOB GROWTH OF THE FIRST HALF WILL CONTINUE AT AN EVEN SLOWER PACE
FOR THE REST OF 1993 AS MORE FIRMS CUT STAFF THE CONFERENCE BOARD SAIDSPS
XXX MERRILL LYNCH AND PAINEWEBBER POSTED RECORD EARNINGS FOR THE FIRST HALF
SIGNALING THAT WALL STREET'S 2 1/2 YEARS OF BIG PROFITS WILL CONTINUE

BEAR STEARNS NAMED JAMES CAYNE ITS PRESIDENT TO THE ADDITIONAL POST OF
CHIEF EXECUTIVE HE SUCCEEDS ALAN GREENBERG WHO REMAINS CHAIRMAN

PROCTER & GAMBLE IS SLASHING PRICES OF LIQUID LAUNDRY DETERGENT FABRIC
SOFTENER AND DISH SOAP BY AS MUCH AS 15 IN RESPONSE TO COMPETITION FROM
RIVAL BRANDS AND PRIVATE LABELS

A TOP AIR FORCE ACQUISITION OFFICER SAID HE OPPOSES THE PROPOSED WHOLESALE
TRANSFER OF 4 BILLION A YEAR IN MAINTENANCE WORK TO DEFENSE FIRMS
SIGNALING A DEEP POLICY DIVISION

CLINTON PLANS TO ASK BANK REGULATORS TO REWRITE COMMUNITY REINVESTMENT RULES
IN AN EFFORT TO LIGHTEN PAPERWORK FOR BANKERS WHILE BOOSTING LENDING IN
LOWINCOME AREAS

GENERAL ELECTRIC POSTED A 10 INCREASE IN SECONDQUARTER EARNINGS DESPITE
WHAT ITS CHAIRMAN DESCRIBED AS A DIFFICULT ECONOMIC ENVIRONMENT

BANK OF NEW YORK SUNTRUST BANKS FIRST FIDELITY BANCORP AND SOCIETY POSTED
STRONG SECONDQUARTER EARNINGS DRIVEN BY WIDE INTEREST MARGINS AND LOWER
CHARGES FOR BAD DEBTS

APPLE IS CONSIDERING SELLING FOR THE FIRST TIME A VERSION OF ITS NOTEBOOK
COMPUTERS THROUGH RETAIL OUTLETS MOVING TO SQUEEZE MORE PROFIT OUT OF ONE
OF THE COMPUTER COMPANY'S BESTSELLERS THE PRESSURE TO CUT EXPENSES COULD
DOOM A NOTEBOOK COMPUTER THAT IS IN THE WORKS AN APPLE EXECUTIVE SAID

TOKYO STOCKS ROSE BROADLY TUESDAY AMID A MARKET MOOD BRIGHTENED BY
CONTINUED SPECULATION THAT JAPAN WILL CUT INTEREST RATES SOON THE NIKKEI
INDEX ROSE 20042 OR 1 TO 2018042 THE FRANKFURT STOCK MARKET'S RECENT
RALLY WAS HALTED BY PROFITTAKING

BONDS LEHMAN BROTHERS TREASURY INDEX 532559 UP 320

COMMODITIES OIL 1813 A BARREL UP THREE CENTS DOW JONES FUTURES INDEX
12628 UP 005 SPOT INDEX 12329 OFF 009

DOLLAR 1080200 OFF 138 17185 OFF 00120 9307140032 930714 BUSINESS
BRIEF CHAMBERS DEVELOPMENT CO NET INCOME OF 18 MILLION IS POSTED
FOR THE 1ST QUARTER

CHAMBERS DEVELOPMENT CO BOLSTERED BY AN ASSET SALE SAID IT EARNED 18
MILLION OR THREE CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH A
YEAREARLIER LOSS OF 226 MILLION OR 34 CENTS A SHARE

THE PITTSBURGH ENVIRONMENTAL SERVICES FIRM BOOKED A 49 MILLION GAIN IN THE
LATEST QUARTER ON THE SALE OF ITS HAULING OPERATIONS IN TEXAS RHODE ISLAND
AND MASSACHUSETTS THE COMPANY'S REVENUE FELL SLIGHTLY TO 677 MILLION FROM
679 MILLION A YEAR AGO

CHAMBERS SAID THE EARNINGS REPORT WAS LATER THAN USUAL BECAUSE IT WANTED TO
WORK OUT AN AGREEMENT WITH LENDERS BEFORE IT RELEASED THE FIGURES THE
COMPANY COMPLETED A CREDIT ACCORD EARLIER THIS MONTH

CHAMBERS ALSO REPORTED A 1992 LOSS OF 707 MILLION OR 106 A SHARE
COMPARED WITH A LOSS OF 722 MILLION OR 121 A SHARE IN 1991 REVENUE
ROSE 18 TO 2943 MILLION FROM 2494 MILLION

WE EMBARKED ON A MORE AGGRESSIVE MARKETING PROGRAM IN 1992 WHICH INCLUDED
AN EMPHASIS ON SPECIAL WASTE DISPOSAL AND LONGDISTANCE RAIL TRANSPORTATION
OF WASTE SAID JOHN G RANGOS SR PRESIDENT AND CHIEF EXECUTIVE
9307140031 930714 TECHNOLOGY & HEALTH PACKAGED' PAYMENT FOR HEART
SURGERY IS BELIEVED TO CUT COSTS NOT QUALITY  BY RON WINSLOW 
STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON A FEDERAL EXPERIMENT IN PAYING A PACKAGED PRICE FOR OPEN HEART
SURGERY APPEARS TO REDUCE MEDICAL COSTS WITHOUT SACRIFICING QUALITY
PARTICIPANTS SAID

TWOYEAR RESULTS FROM THE PROJECT INDICATE THE MEDICARE PROGRAM PAID 13
LESS FOR CORONARY ARTERY BYPASS SURGERY FOR PATIENTS AT THE SEVEN
PARTICIPATING HOSPITALS THAN FOR PATIENTS GETTING THE SAME SERVICES AT OTHER
FACILITIES QUALITY MEASURES SUCH AS DEATH RATES LENGTH OF HOSPITAL STAY
AND PATIENT SATISFACTION WERE AT LEAST AS GOOD FOR PATIENTS IN THE PROGRAM
AS THEY WERE AT THE HOSPITALS BEFORE THE EXPERIMENT BEGAN OFFICIALS SAID

THE SAVINGS WERE ACHIEVED THROUGH EFFICIENCIES NOT THROUGH CUTTING
SERVICES SAID RICHARD L PRAGER A HEART SURGEON AT ST JOSEPH MERCY
HOSPITAL ANN ARBOR MICH ONE OF THE PARTICIPATING INSTITUTIONS THAT'S
WHAT HEALTHCARE REFORM IS ALL ABOUT

THE RESULTS WERE ANNOUNCED AT AN UNUSUAL NEWS CONFERENCE HERE THAT WAS
ORGANIZED BY THE HOSPITALS NOT THE HEALTH CARE FINANCING ADMINISTRATION OR
HCFA WHICH ADMINISTERS THE MEDICARE PROGRAM AND IS SPONSORING THE
EXPERIMENT JOSEPH R ANTOS HCFA'S DIRECTOR OF RESEARCH AND DEMONSTRATIONS
SAID THE AGENCY IS VERY ENTHUSIASTIC ABOUT THE PROJECT BUT WOULDN'T MAKE
A FORMAL STATEMENT UNTIL IT IS RIGOROUSLY EVALUATED AFTER THE THIRD YEAR

UNDER THE PROJECT MEDICARE PAYS A SINGLE NEGOTIATED FEE THAT COVERS BOTH
HOSPITAL SERVICES AND DOCTOR CHARGES NORMALLY HOSPITALS AND AS MANY AS
EIGHT DOCTORS BILL SEPARATELY FOR BYPASS SURGERY AN ARRANGEMENT THAT
AMONG OTHER THINGS OFTEN LEADS TO INEFFICIENT CARE THE IDEA BEHIND
SOCALLED BUNDLED BILLING IS TO COMPEL DOCTORS AND HOSPITALS TO SHARE
FINANCIAL RISK FOR THEIR SERVICES AND THUS WORK TOGETHER TO FIND WAYS TO
CONTROL COSTS AND IMPROVE CARE

THE FINDINGS ARE BASED ON 2552 CASES SINCE MID1991 IF THE 146700 BYPASS
OPERATIONS MEDICARE COVERED IN 1992 WERE DONE UNDER THE PROGRAM THE TOTAL
SAVINGS WOULD HAVE AMOUNTED TO MORE THAN 500000 THE HOSPITALS SAID

SUCH POTENTIAL WARRANTS ATTENTION AS THE NATION AWAITS THE CLINTON
ADMINISTRATION'S PLAN FOR OVERHAULING US HEALTH CARE THE HOSPITALS
ASSERTED BUNDLING COULD BE A SMART WEAPON AGAINST THE MUCHFEARED
BANKRUPTCY OF THE AMERICAN HEALTHCARE SYSTEM SAID MICHAEL D BLASYCK
EXECUTIVE VICE PRESIDENT BOSTON UNIVERSITY MEDICAL CENTER BOSTON ANOTHER
PARTICIPANT

WHILE IT'S UNCLEAR WHETHER THE HCFA WILL UNDERTAKE A MAJOR EXPANSION OF THE
PROGRAM WHICH WAS LAUNCHED BY GAIL WILENSKY ADMINISTRATOR OF THE AGENCY
UNDER THE BUSH ADMINISTRATION USE OF BUNDLED BILLING IS GROWING AMONG
HOSPITALS AND PHYSICIANS BOTH IN AND OUT OF THE PROJECT

BOSTON UNIVERSITY FOR INSTANCE IS ESTABLISHING BUNDLED PRICES FOR 12
HEARTRELATED DIAGNOSES MR BLASYCK SAID METHODIST HOSPITAL OF INDIANA
WHICH JUST JOINED THE PROJECT EXPECTS TO HAVE BUNDLED PRICES FOR 100
PROCEDURES BY YEAR END AND DOCTORS AND ADMINISTRATORS AT ST JOSEPH
HOSPITAL OF ATLANTA HAVE CONTRACTED WITH DELTA AIR LINES FOR BUNDLED
HEARTBYPASS SERVICES FOR EMPLOYEES

OTHER PARTICIPANTS IN THE EXPERIMENT ARE OHIO STATE UNIVERSITY HOSPITALS 
COLUMBUS OHIO ST VINCENT HOSPITAL & MEDICAL CENTER PORTLAND ORE AND
ST LUKE'S EPISCOPAL HOSPITAL/TEXAS HEART INSTITUTE HOUSTON 9307140030
930714 INTERNATIONAL WORLD WIRE  COMPILED BY RICHARD L HOLMAN

MORE CHINESE STATERUN BANKS SAID THEY WOULD CONTROL LENDING UNDER THE
GOVERNMENT'S TIGHTER CREDIT POLICY

TWO BIG BANKS WILL LEND ONLY IN AREAS THE CENTRAL BANK DECLARES OF PRIMARY
IMPORTANCE TO THE ECONOMY TWO OTHER BANKS HAVE BEGUN RECALLING HIGHRISK
AND INTERBANK LOANS BEIJING WANTS TO REVERSE OVERHEATING FROM UNCHECKED
LENDING A DEPRECIATING CURRENCY AND CASH SHORTAGES

AS PART OF THE PLAN TO CURB INFLATION AND DIVERT FUNDS FROM RISKY VENTURES
TO PUBLICWORKS CONSTRUCTION CHINA UNVEILED RESTRICTIONS TO COOL
SPECULATIVE DEALINGS IN REAL ESTATE THAT ALSO JACKED UP MATERIALS PRICES
CURBS APPLY TO RACETRACKS GOLF COURSES LUXURY HOTELS AND OFFICE BUILDINGS
AND DEVELOPERS MUST BE REGISTERED

CHINA'S CREDIT TIGHTENING HAS BEGUN TO HURT TRADE WITH JAPAN PEOPLE IN THE
INDUSTRY SAID THE POLICY HAS DELAYED ISSUANCE OF LETTERS OF CREDIT BY
COMMERCIAL BANKS HAMPERING DELIVERIES OF GOODS FROM JAPAN AND HOLDING UP
SETTLEMENTS OF CONTRACTS

RUSSIA CUT OFF INTERNATIONAL TELEPHONE LINES TO GEORGIA IN A DISPUTE ABOUT
PAYMENTS LEAVING GEORGIA WITH CONNECTIONS ONLY TO OTHER FORMER SOVIET
REPUBLICS GEORGIA'S INTERNATIONAL CALLS MUST BE ROUTED THROUGH MOSCOW'S
CREAKY CENTRALIZED SYSTEM RUSSIA DEMANDS THAT GEORGIA SIGN A NEW
TELECOMMUNICATIONS DEAL AND PAY TARIFFS FOR THIS YEAR TOTALING 75000 WHEN
IT GETS PAID RUSSIA SAID IT WILL REOPEN GEORGIA'S GLOBAL PHONE LINKS
GEORGIA WANTS AN ACCOUNTING OF ITS CALLS

GERMANY'S CABINET APPROVED AND SENT TO PARLIAMENT A BILL TO ALLOW LONGER
WORKING AND MACHINEOPERATING HOURS NOW THE SHORTEST AMONG MAJOR INDUSTRIAL
STATES AND TO EXPAND EMPLOYERS' FLEXIBILITY THE CHANGES IN LABOR LAWS
DATING FROM 1938 ARE AIMED AT IMPROVING ECONOMIC COMPETITIVENESS THE
PROPOSAL WOULD LET BUSINESSES SET UP EXTRA SHIFTS IF NEEDED FOR
PROFITABILITY IT WOULD MAINTAIN THE EIGHTHOUR WORKDAY BUT ALLOW AS MUCH AS
TWO HOURS OF OVERTIME TO OVERCOME PRODUCTION BOTTLENECKS THE LEGISLATION
ALSO WOULD LIFT A BAN ON MOST WORK ON SUNDAYS AND HOLIDAYS

MORE THAN 1000 FACTORY WORKERS RALLIED OUTSIDE THE THAI PRIME MINISTER'S
OFFICE IN BANGKOK TO PROTEST FACTORY LAYOFFS ANTIUNION VIOLENCE AND POOR
JOBSAFETY CONDITIONS MANY OF THE PROTESTERS WERE WOMEN EMPLOYED BY TWO
TEXTILE PLANTS NEAR THE CAPITAL THAT HAVE LAID OFF HUNDREDS OF PEOPLE
RECENTLY BECAUSE OF AUTOMATION PROTESTERS DEMANDED THE GOVERNMENT PROVIDE
TRAINING AND OTHER BENEFITS FOR DISPLACED WORKERS CALLED FOR LAWS TO
PROTECT LABOR ORGANIZERS AND COMPLAINED ABOUT SAFETY CITING FATAL
ACCIDENTS

ABUSIVE FARMING PRACTICES SUCH AS DEFORESTATION AND OVERGRAZING ARE
ELIMINATING PRODUCTIVE SOIL AT AN ALARMING PACE WORLDWIDE AND IMPERILING
FOOD PRODUCTION THE UNITED NATIONS FOOD AND AGRICULTURAL ORGANIZATION SAID
LEFT UNCHECKED LAND DEGRADATION COUPLED WITH DEMANDS FROM POPULATION
GROWTH COULD WIPE OUT THE AGRICULTURAL VALUE OF AREAS EQUIVALENT TO THE
SIZE OF ALASKA IN TWO TO THREE DECADES THE UN REPORT SAID AN ADDITIONAL
225 BILLION ACRES BIGGER THAN THE LAND AREA OF AUSTRALIA NEED
RESTORATION

HUNGARY AND LATVIA RECEIVED APPROVAL FOR LOANS TO UPGRADE TRANSPORTATION
SYSTEMS THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WILL LEND
689 MILLION TO BUDAPEST TO IMPROVE PUBLIC TRANSIT IN THE HUNGARIAN CAPITAL
AND REDUCE NOXIOUS EMISSIONS FROM BUSES AND TRAINS THE REMAINDER OF THE
1959 MILLION PROJECT IS TO BE FUNDED BY THE CITY AND THE WORLD BANK IN
LATVIA THE RIGA INTERNATIONAL AIRPORT WILL GET A 121 MILLION EBRD LOAN
AND FINANCE THE REMAINING 11 MILLION COST TO BRING THE RUNWAY TAXIWAYS
AND LIGHTING UP TO GLOBAL SAFETY STANDARDS

FRANCE'S DISCOUNT RETAILERS REBUTTED CLAIMS BY POLITICIANS AND SMALL
BUSINESSES THAT THE BIG FIRMS ARE AS MUCH TO BLAME AS LOWCOST FOREIGN
COMPETITORS FOR RISING UNEMPLOYMENT AND BANKRUPTCIES

THE BIG FIRMS' EXPANSIONS HAVE BEEN CITED FOR FAILURES OF SMALL STORES THAT
TRADITIONALLY DOMINATED FRANCE'S RETAIL TRADE CRITICS SAY THE LARGER
STORES' BULKBUYING ADVANTAGES AND LOWER PRICES DRAIN JOBS AND ACTIVITY FROM
SMALL TOWNS DECLARING FOR EXAMPLE THAT 15 CAFES FAIL EVERY DAY AND THAT
DELICATESSENS NOW TOTAL 9000 DOWN 40 FROM 1970 THE BIG FIRMS ALSO ARE
BLAMED FOR DEMANDING PRICE CUTS FROM SUPPLIERS ENDANGERING THEM TOO

REPRESENTATIVES OF THE LARGE COMPANIES TOLD A NATIONAL ASSEMBLY PANEL THAT
RECESSIONSTIFLED CONSUMERS WILL ONLY PAY LOW PRICES FOR NECESSITIES NOW

AN AD CAMPAIGN BY THE RETAILERS SAYS THEY ARE SCAPEGOATS FOR ECONOMIC WOES
WHILE THEY ACTUALLY CREATE JOBS THE DISCOUNTERS ALSO NOTE THAT SMALLSTORE
OWNERS HAVEN'T MODERNIZED AND THAT MANUFACTURERS WOULD RATHER LOSE BUSINESS
THAN LOWER PRICES AND HURT BRAND IMAGES

IN FRANCE'S DRIVE AGAINST AIDS A MILLION CONDOMS WILL BE DISTRIBUTED TO 200
CAFES BEACH BARS AND DISCOS ON THE MEDITERRANEAN RIVERIA PATRONS WHO ORDER
CAFE BRANCHE OR WITHIT COFFEE GET A FREE CONDOM  VIETNAM WILL HOST
AN INTERNATIONAL SURFING COMPETITION FOR 60000 IN PRIZE MONEY OCT 411 AT
CHINA BEACH NEAR DANANG WHERE US TROOPS TOOK RESTANDRECREATION TRIPS
DURING THE VIETNAM WAR 9307140029 930714 HEARD ON THE STREET CANADIAN
OIL AND GAS STOCKS SEEM TO BE POISED FOR FURTHER GAINS SOME FUND MANAGERS
SAY  BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL

TORONTO STOCKMARKET VETERANS ARE SAYING THERE'S A BARGAIN TO BE HAD IN
CANADIAN OIL AND GAS STOCKS EVEN THOUGH SOME HAVE DOUBLED IN THE PAST YEAR

THE CANADIAN OILS TOOK A DIVE LAST WEEK WITH PRICES FALLING 7 TO 20 ON
THE TORONTO STOCK EXCHANGE THE GROUP REBOUNDED MONDAY BUT FELL BACK
YESTERDAY LEAVING SOME OF THE STOCKS 10 BELOW RECENT HIGHS

THIS IS A GREAT CHANCE TO BUY TOPNOTCH COMPANIES CHEAPLY SAYS NORMAND
LAMARCHE MANAGER OF TORONTO'S ALTAMIRA RESOURCE FUND THE INDUSTRY
FUNDAMENTALS ARE THERE AND NOW THE PRICING FUNDAMENTALS ARE IN PLACE AS
WELL

WHAT'S THE BIG ATTRACTION IN CONTRAST TO US OIL GIANTS MANY CANADIAN
ENERGY COMPANIES ARE HEAVILY WEIGHTED TOWARD OUTPUT OF NATURAL GAS WHICH
THEY PRODUCE AT FAR LOWER COSTS THAN THEIR US COUNTERPARTS AND SO THE
CANADIAN COMPANIES SEEM POISED TO BENEFIT FROM THE RECENT RUNUP IN NATURAL
GAS PRICES HELPED BY NEW PIPELINE CAPACITY THAT IS EASING THE SUPPLY
BOTTLENECKS THAT PREVIOUSLY FACED GAS GOING TO THE US MARKET

THERE'S A LOT OF ATTENTION DIRECTED AT THE NATURAL GAS STORY AND THE FACT
THAT CANADIAN PRODUCERS SEEM TO BE ABLE TO PRODUCE MORE FOR LESS SAYS
GEORGE DOMOLKY MANAGER OF BOSTONBASED FIDELITY INVESTMENTS' CANADA FUND
THERE WAS A CONCERN ABOUT PRICE LEVELS BUT QUALITY STOCKS LIKE RENAISSANCE
ENERGY  ARE BACK IN A BUYING RANGE ONCE MORE

AT ALTAMIRA MR LAMARCHE'S FUND RACKED UP A 109 RETURN IN THE PAST 12
MONTHS BY BETTING HEAVILY ON CANADIAN OIL AND GAS STOCKS INSTEAD OF BAILING
OUT LAST WEEK HE ADDED TO HOLDINGS OF SUCH FAVORITES AS CALGARYBASED GAS
PRODUCER ANDERSON EXPLORATION ANDERSON RECENTLY TRADED AS HIGH AS 29
CANADIAN DOLLARS BUT LAST WEEK GOT DOWN TO C2625 IT NOW STANDS AT
C2675 AND MR LAMARCHE ENVISIONS C35 OR C40 WITHIN A YEAR

ANDERSON ALSO IS ON THE BUY LIST OF ALLAN MEYER A FUND MANAGER FOR ELLIOTT
& PAGE IN TORONTO WHO EXPECTS THE COMPANY TO BOOST GAS PRODUCTION 30 THIS
YEAR ANOTHER OF HIS FAVORITES IS POCO PETROLEUM NOW AT C9125 WHICH HE
EXPECTS TO REACH C12 BY EARLY NEXT YEAR IT'S TRADING AT LESS THAN FIVE
TIMES 1994 CASH FLOW OF AN ESTIMATED 2 A SHARE OR MORE

ALSO POPULAR IS CALGARY'S TALISMAN ENERGY FORMERLY KNOWN AS BP CANADA IT
HAS SIGNIFICANT EXPOSURE TO THE GASRICH MONKMAN REGION OF BRITISH COLUMBIA
AND RECENTLY ACQUIRED FELLOW PRODUCER ENCOR ON WHAT ANALYSTS DEEM
ADVANTAGEOUS TERMS WE'RE CALLING FOR CASH FLOW TO HIT C490 A SHARE IN
1994 SAID JIM DOAK DIRECTOR OF RESEARCH AT SCOTIAMCLEOD A TORONTO
INVESTMENT DEALER

MR DOAK ALSO LIKES CANADIAN NATURAL RESOURCES WHOSE 1994 CASH FLOW HE
FIGURES COULD BE TRIPLE 1992'S C418 MILLION OR C162 A SHARE THE
COMPANY ITSELF IS FORECASTING NET INCOME OF C30 MILLION THIS YEAR UP FROM
C139 MILLION A YEAR EARLIER THE STOCK TRADED AROUND C20 BEFORE TUMBLING
TO C17875 YESTERDAY

RENAISSANCE ENERGY FAVORABLY MENTIONED BY ANALYSTS IN THIS COLUMN IN AUGUST
AT C1575 NOW TRADES AT C3150 A FEW DOLLARS BELOW ITS 52WEEK PEAK THE
STOCK HAS LONG BEEN EXPENSIVE COMPARED WITH OTHER CANADIAN OILS YET THE
COMPANY'S OUTPUT AND CASH FLOW HAVE GROWN FASTER TOO RENAISSANCE PLANS TO
DRILL MORE THAN 1000 WELLS THIS YEAR ITS COST BASE IS A VERY LOW US11 A
BARREL OF OIL EQUIVALENT AND FALLING THAT COMPARES WITH A
US1815ABARREL BENCHMARK PRICE FOR CRUDE OIL YESTERDAY THE COMPANY
ESTIMATES CASH FLOW WILL RISE TO AROUND C270 A SHARE IN 1993 FROM C191
LAST YEAR FOR 1994 ANALYSTS LOOK FOR CASH FLOW OF C376 A SHARE

IN NEW YORK GOLDMAN SACHS RECENTLY STEPPED UP COVERAGE OF CANADIAN OIL AND
GAS PRODUCERS IN RESPONSE TO DEMAND FROM INVESTORS GOLDMAN ANALYST JONATHAN
FARBER BELIEVES THE CANADIAN INDUSTRY OFFERS STRONGER GROWTH OPPORTUNITIES
THAN ITS US COUNTERPART

IN CANADA HE SAYS IT'S POSSIBLE TO DRILL FOR GAS AT HALF THE COST OF US
GAS EXPLORATION IN LOUISIANA COMPANIES NEED TO DRILL 15000 TO 18000 FEET
TO FIND GAS WHILE CANADIAN DRILLERS WORKING IN LESSEXPLOITED AREAS MAY
DRILL ONLY 2000 TO 3000 FEET

AFTER FIVE TO 10 YEARS OF TOUGH TIMES MANAGEMENTS THAT HAVE HAD AN
EXTRAORDINARY FOCUS ON COST CONTROLS ARE BEGINNING TO SEE THE PAYOFFS MR
FARBER ADDS HE FIGURES CANADIAN COMPANIES CAN BE PROFITABLE WITH GAS PRICES
OF ABOUT US150 A THOUSAND CUBIC FEET WHILE THE US FIGURE DOESN'T GO
MUCH BELOW US225 NATURAL GAS CURRENTLY SELLS FOR AROUND US208

CANADA'S OIL PRODUCERS ARE USING NEW TECHNOLOGY TO EXTRACT MORE CRUDE FROM
OLDER FIELDS OVERHEAD HAS BEEN SLASHED IN RECENT YEARS LEAVING WHAT MR
FARBER CALLS STEELDESK COMPANIES NO PLUSH NO PLANTS JUST LEAN AND
MEAN MOREOVER IN CANADA'S MAIN ENERGYPRODUCING PROVINCE OF ALBERTA LAND
IS CHEAP AND THERE ARE GOVERNMENT DRILLINGINCENTIVE PROGRAMS LET OTHER
AREAS OF THE WORLD FRET OVER THE POSSIBLE ARRIVAL ON THE WORLD MARKET OF
IRAQI CRUDE BULLS SAY IT WON'T HURT MOST CANDIAN PRODUCERS

OR AS MR FARBER PUTS IT CANADIAN OILANDGAS STOCKS ARE A VERY EXCITING
INVESTMENT THEME 9307140028 930714 MARKETING & MEDIA ADVERTISING 
WARNER USES LONG ADS TO ATTRACT VIEWERS TO MOVIE OF THE FUGITIVE' 
 BY KEVIN GOLDMAN

RICHARD KIMBLE IS ON THE RUN AGAIN AND THE CHALLENGE FACING WARNER BROS IS
TO MAKE SURE PEOPLE CARE

RICHARD KIMBLE OF COURSE IS THE EARNEST AND ERSTWHILE DOCTOR WHO WAS
FALSELY ACCUSED OF MURDERING HIS WIFE IN THE FUGITIVE THE HIT ABC SERIES
THAT RAN FOR FOUR SEASONS BEGINNING IN 1963 AND STARRED DAVID JANSSEN NEXT
MONTH 26 YEARS AFTER DR KIMBLE WAS EXONERATED IN WHAT WAS THE MOSTWATCHED
TV PROGRAM EVER A RECORD THAT STOOD FOR NINE YEARS TIME WARNER'S FILM
STUDIO IS RELEASING A 127MINUTE MOVIE OF THE SAME NAME HARRISON FORD STARS
AS THE HUNTEDDOWN GOOD DOCTOR

WARNER BROS MUST ATTRACT AN AUDIENCE THAT BELIEVES IT ALREADY KNOWS THE
STORY THOSE WHO SAW THE ORIGINAL BLACKANDWHITE SERIES WHEN IT AIRED OR
WHO WATCH RERUNS ON CABLE'S ARTS & ENTERTAINMENT CHANNEL YET IT ALSO MUST
HOOK A YOUNGER AUDIENCE THAT HAS NO MEMORY OF THE ABC SERIES

THIS WEEK WARNER BROS HOPES TO GET THE NATION BUZZING ABOUT THE FUGITIVE
WITH AN UNUSUAL AD BLITZ A RIVETING 90SECOND COMMERCIAL AIRED THROUGH LAST
NIGHT ON BROADCAST AND CABLE NETWORKS AND ON LOCAL STATIONS THE NEXT STEP
IS AIRING A SERIES OF MORE TRADITIONAL 15SECOND AND 30SECOND SPOTS THOSE
ADS LIKE THE 90SECOND EPIC WILL BE CULLED FROM THE TWOMINUTE TRAILER
THAT BEGAN RUNNING IN THEATERS DURING THE MEMORIAL DAY WEEKEND

IN THIS ERA OF 15SECOND AND HALFMINUTE ADS THE LENGTH OF THE 90SECOND
COMMERCIAL IS UNUSUAL ENOUGH BUT THE SPOT'S ACTION IS EVEN MORE
UNCONVENTIONAL INCLUDED IN THE FASTPACED COMMERCIAL ARE SCENES THAT
SHOWCASE TWO OF THE FILM'S MORE SPECTACULAR EFFECTS A TRAIN CRASHING INTO
THE BUS THAT'S TAKING DR KIMBLE TO PRISON AND THE HERO JUMPING INTO A
MONSTROUS WATERFALL TO ESCAPE HIS NEMESIS LT PHILIP GERARD PLAYED BY TOMMY
LEE JONES

IT MAY SEEM RISKY TO SERVE UP A MOVIE'S TWO BEST ACTION SHOTS IN A SIMPLE TV
SPOT BUT THE FUGITIVE MUST BREAK THROUGH AN INCREDIBLE CLUTTER OF SUMMER
MOVIES THE FILM OPENS IN 2000 THEATERS ON AUG 6 CHASING AFTER SUCH HITS
AS JURASSIC PARK THE FIRM IN THE LINE OF FIRE AND SLEEPLESS IN
SEATTLE

WE WANTED TO SHOW EVERYONE IMMEDIATELY THAT THIS IS DIFFERENT FROM THE
TELEVISION SHOW SAYS JOEL WAYNE EXECUTIVE VICE PRESIDENT OF ADVERTISING
AT THE MOVIE STUDIO WE HAVE TO CONVINCE PEOPLE THAT THIS MOVIE HAS THINGS
FAR BEYOND ANYTHING THEY MIGHT HAVE SEEN ON THE TV SERIES AND WE DON'T GET
MANY CHANCES TO GRAB THEM RIGHT AWAY SO WE HAD TO PRODUCE SOMETHING THAT
WOULD HAVE PEOPLE STAND UP AND TAKE NOTICE

THE AD FOR THE FUGITIVE IS MORE TRAILER THAN TV SPOT BUT SO WERE
90SECOND COMMERCIALS FOR WARNER FLICKS BATMAN AND GREYSTOKE THE LEGEND
OF TARZAN LORD OF THE APES PARAMOUNT PICTURES ALSO TRIED THE ELONGATED
SPOTS FOR 1492 CONQUEST OF PARADISE WHICH STARRED GERARD DEPARDIEU AS
CHRISTOPHER COLUMBUS THOUGH THAT DIDN'T HELP THAT MOVIE SANK AT THE BOX
OFFICE

ALTHOUGH WARNER BROS DECLINES TO COMMENT ONE ADVERTISING AND MARKETING
EXECUTIVE AT A RIVAL STUDIO ESTIMATES THAT WARNER BROS IS SPENDING 12
MILLION TO 15 MILLION ON COMMERCIALS FOR THE FUGITIVE WARNER BROS ALSO
DECLINES TO SAY HOW MANY 90SECOND ADS WERE PURCHASED

THE 90SECOND AD BEGINS WITH A DISHEVELED DR KIMBLE ASKING HIS ACCUSERS IN
A MONOTONE VOICE HOW THEY COULD THINK HE KILLED HIS WIFE WHAT FOLLOWS NEXT
IS A CAPTIVATING SERIES OF SCENES INCLUDING THE INFAMOUS ONEARMED MAN
REMOVING HIS ARTIFICIAL LIMB MR FORD'S CHARACTER BEING CHASED THROUGH A
CITY SQUARE A FLASHBACK OF DRIVING WITH HIS WIFE AND HIM RUNNING RUNNING
RUNNING

THE SPOT ENDS WITH THE ALLURING LINE ON AUG 6 THE CHASE BEGINS

THE CHALLENGE ON PROPERTIES THAT ARE WELL KNOWN IS THAT YOU HAVE TO PROVIDE
A SENSE OF DRAMA THAT ELEVATES THE PROJECT BEYOND SOMETHING THAT THE PUBLIC
ALREADY KNOWS SAYS MR WAYNE OF WARNER BROS ROB FRIEDMAN PRESIDENT OF
WORLDWIDE ADVERTISING AND PUBLICITY AT WARNER BROS SAYS THE STUDIO DIDN'T
JUST WANT TO SIT BACK AND RELAX AND THINK PEOPLE WILL JUST COME BASED ON
REMEMBERING THE TELEVISION SERIES

IN FACT THOSE EXPECTING WELL A STRICT RERUN OF THE OLD TV SERIES MAY BE
SURPRISED THE MOVIE INCLUDES A NEW SUBPLOT THAT'S DIRECTLY RELATED TO THE
MURDER OF DR KIMBLE'S WIFE FOR THOSE WHO REMEMBER THE END OF THE TV
SERIES A SLIGHTLY DIFFERENT VERSION IS IN THE MOVIE AND IT'S USED AS A
SPRINGBOARD FOR A DIFFERENT CONCLUSION TO THE FILM

BUT WHILE THE TV SERIES LIKE ITS HERO RAN ON AND ON WARNER BROS SAYS IT
HASN'T EVEN ADDRESSED THE SUBJECT OF PRODUCING THE FUGITIVE SEQUELS
CAN'T WE OPEN THIS ONE FIRST MR FRIEDMAN PLEADS BUT IF WARNER'S AD
BLITZ BEGETS BOFFO BOX OFFICE THE STUDIO MAY FIND IT DIFFICULT TO RESIST
THE TEMPTATION TO HAVE DR KIMBLE GO ON THE LAM AGAIN

ROYAL MISTIC TWO AGENCIES ARE CREATING ADS FOR JOSEPH VICTORI WINES INC'S
ROYAL MISTIC LINE OF FRUITFLAVORED SPRING WATERS ACCORDING TO THE MASPETH
NY COMPANY TV COMMERCIALS BY AVRETT FREE & GINSBERG OF NEW YORK AND
RADIO ADS BY EISNER & ASSOCIATES OF BALTIMORE ARE AIRING IN SPOT MARKETS
SAID BILL ROETHEL VICE PRESIDENT OF MARKETING THE GAME PLAN IS TO ARRIVE
AT ONE AGENCY HE SAID BILLINGS ON THE ACCOUNT PREVIOUSLY AT GIGANTE VAZ
& PARTNERS OF PARSIPPANY NJ COULDN'T BE DETERMINED 9307140027 930714
MARKETING P&G IS MAKING WASHING CHORES LESS EXPENSIVE  BY
GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL

PROCTER & GAMBLE CO LASHING OUT AT RIVAL BRANDS AND MOUNTING PRIVATELABEL
COMPETITION IS SLASHING PRICES OF LIQUID LAUNDRY DETERGENT FABRIC SOFTENER
AND LIQUID DISHSOAP AS MUCH AS 15

THE PRICE CUTS ON P&G'S TIDE CHEER ERA DREFT AND IVORY SNOW LIQUID
LAUNDRY DETERGENTS DOWNY LIQUID FABRIC SOFTENER AND IVORY DISHWASHING
LIQUID TAKE EFFECT AUG 2

THE CINCINNATIBASED CONSUMER PRODUCTS GIANT SAID IT WOULD COVER THE COST OF
THE PRICE CUTS LARGELY THROUGH MANUFACTURING EFFICIENCIES P&G ALSO INTENDS
TO REDUCE THE VALUE AND NUMBER OF CONSUMER COUPONS P&G SAID THE PRICE CUTS
WOULDN'T AFFECT EARNINGS

IF THEY CAN FIND THE COST SAVINGS THE PRICE CUTS MAKE SENSE SAID GABRIEL
D LOWY ANALYST WITH OPPENHEIMER & CO BUT IF THEY CAN'T THE CUTS WILL
JEOPARDIZE THEIR PROFIT MARGINS

P&G SAID THE MOVES WERE PROMPTED BY INCREASING CONSUMER DEMAND FOR BRAND
VALUE THE COMPANY TOLD ANALYSTS IT IS CONCERNED THAT THE PRICE GAP BETWEEN
ITS BRANDS AND LOWERPRICED RIVAL BRANDS SUCH AS PUREX MADE BY DIAL CORP
HAVE BECOME TOO WIDE HOWEVER ANALYSTS BELIEVE P&G ALSO IS WORRIED ABOUT
COMPETITION PARTICULARLY FROM ANGLODUTCH UNILEVER GROUP WHICH IN MAY
INTRODUCED A NEW SUPERCONCENTRATED VERSION OF ITS WISK SURF AND ALL
LIQUIDS UNILEVER IS SPENDING 100 MILLION THIS YEAR TO MARKET THE NEW
PRODUCTS PITCHING THEM AS MORE CONVENIENT AND BETTER PERFORMERS THAN P&G'S
CONCENTRATED LIQUID DETERGENTS

I THINK P&G'S PRICE CUTS ARE A PREEMPTIVE MOVE AGAINST ANTICIPATED
COMPETITION FROM UNILEVER SAID BONITA AUSTIN ANALYST WITH SHEARSON LEHMAN
BROS P&G SAID THE PRICE OF TIDE AND CHEER LIQUIDS WOULD BE CUT 15 ERA
5 IVORY SNOW AND DREFT 12 IVORY DISHWASHING LIQUID 13 AND DOWNY AS
MUCH AS 8

P&G IS INCREASINGLY USING PRICE AS A WEAPON AS IT GRAPPLES WITH ERODING
MARKET SHARES IN SOME PRODUCTS SUCH AS DISPOSABLE DIAPERS THE COMPANY HAS
SLASHED PRICES OF ITS PAMPERS AND LUVS DIAPERS THREE TIMES IN THE PAST YEAR
PRICE CUTS ARE ALSO PART OF P&G'S EVERYDAY LOW PRICING STRATEGY WHICH
INVOLVES REDUCED MARKETING EXPENDITURES OFFSET BY LOWER PRICES FOR MORE THAN
70 OF ITS PRODUCTS THE PRICES OF LIQUID TIDE AND CHEER FOR EXAMPLE WERE
CUT 9 LATE LAST YEAR AS P&G MOVED THE LAUNDRYDETERGENT CATEGORY TO
EVERYDAY LOW PRICING

P&G'S ACTIONS REFLECT A GROWING SENSITIVITY TO PRICE BY CONSUMERPRODUCTS
MAKERS SAID MARKETING CONSULTANT BILL BISHOP IT'S A VERY ACCURATE
REFLECTION OF THE WAY THE CONSUMERGOODS BUSINESS IS MOVING THERE'S A
TREMENDOUS EMPHASIS TODAY ON EFFICIENCY AND GETTING TO A PRICE POINT THAT'S
VIEWED AS A VALUE BY THE CONSUMER SAID MR BISHOP PRESIDENT OF WILLARD
BISHOP CONSULTING BARRINGTON ILL

P&G IS EXPECTED TO ELABORATE ON PLANS TO CUT EXPENSES TO 12 OF SALES FROM
145 OVER THE NEXT THREE YEARS AT AN ANALYSTS' MEETING TOMORROW IN
CINCINNATI

ANALYSTS BELIEVE THE LATEST PRICE CUTS ARE DRIVEN BY P&G'S AMBITION TO GRAB
MARKET SHARE FROM UNILEVER AND COLGATEPALMOLIVE CO NEW YORK

AT UNILEVER'S LEVER BROS UNIT DAVID B SHARP SENIOR VICE PRESIDENT FOR
MARKETING SAID P&G'S PRICE CUTS PROMPTED IMMEDIATE ACTION TO REMAIN
COMPETITIVE BUT HE DECLINED TO ELABORATE

COLGATE WHOSE PRODUCTS INCLUDE FAB LIQUID LAUNDRY DETERGENT AND PALMOLIVE
DISHWASHING LIQUID DECLINED TO COMMENT

P&G'S COMMON STOCK CLOSED AT 5150 A SHARE DOWN 150 IN COMPOSITE
TRADING ON THE NEW YORK STOCK EXCHANGE 9307140026 930714 GM HITS AGENCY'S
 STATISTICAL ANALYSIS IN PICKUP DISPUTE

WASHINGTON GENERAL MOTORS CORP ATTACKED THE HEART OF FEDERAL REGULATORS'
ARGUMENTS AGAINST ITS 19731987 PICKUP TRUCKS SAYING THE DIFFERENCE BETWEEN
THEIR SAFETY RECORD AND THAT OF FORD PICKUPS IS NO GREATER THAN THE
DIFFERENCE BETWEEN SAFETY RECORDS OF HUNDREDS OF OTHER PAIRS OF VEHICLES

THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ASKED GM TO RECALL ITS
PICKUPS WITH SIDEMOUNTED GASOLINE TANKS IN PART BECAUSE IT SAID THE GM
TRUCKS ARE 24 TIMES MORE LIKELY TO BE INVOLVED IN FIERY FATAL BROADSIDE
COLLISIONS THAN ARE COMPARABLE FORD PICKUPS

BUT GM CONTENDED THAT ITS NEW ANALYSIS OF FEDERAL ACCIDENT DATA CLEARLY
REFUTES THE KEY STATISTICAL BASIS ON WHICH THE AGENCY REQUESTED THE RECALL
IF THE SAME STATISTICAL APPROACH WERE APPLIED TO THE GENERAL VEHICLE
POPULATION LITERALLY HUNDREDS OF OTHER MODELS WOULD FAIL GM SAID

IN A 29PAGE SUBMISSION TO THE AGENCY GM PRESENTED DATA SHOWING THAT EVEN
IDENTICAL VEHICLES SOLD UNDER DIFFERENT NAMEPLATES SOMETIMES HAVE
FATALFIRERATE DISPARITIES THAT ARE SIGNIFICANTLY GREATER THAN 24 FOR
EXAMPLE GM SAYS ITS ANALYSIS SHOWS THAT DODGE'S 19841990 MINIVANS ARE
INVOLVED IN FATAL FRONTAL CRASHES WITH FIRES 33 TIMES MORE OFTEN THAN
IDENTICAL 19841990 PLYMOUTH MINIVANS SIMILARLY GM SAYS 19801982 FORD
THUNDERBIRDS ARE INVOLVED IN SUCH AN ACCIDENT 88 TIMES MORE OFTEN THAN ITS
MERCURY COUGAR TWIN

THE NHTSA WHICH HASN'T DECIDED WHETHER TO TRY TO FORCE GM TO RECALL THE 47
MILLION PICKUPS WITH SIDEMOUNTED GASOLINE TANKS DECLINED TO COMMENT ON THE
CAR MAKER'S SURVEY WHICH WAS FILED LAST MONTH AND MADE PUBLIC THIS WEEK
BUT IN A LETTER TO GM LATE LAST MONTH THE AGENCY QUESTIONED THE WAY GM
CHOSE WHICH VEHICLES TO INCLUDE IN THE SURVEY

MOREOVER THE FEDERAL AGENCY ISN'T RELYING SOLELY ON FEDERAL FATALACCIDENT
REPORTS TO BOLSTER ITS CASE FOR A RECALL THE NHTSA LAST MONTH TOLD GM THAT
ITS REVIEW OF MICHIGAN ACCIDENT DATA SHOWS THAT THE GM PICKUPS ARE
SIGNIFICANTLY MORE PRONE TO FUEL LEAKS AND FIERY FUEL LEAKS THAN ARE FORD OR
DODGE TRUCKS MICHIGAN IS THE ONLY STATE THAT TRACKS FUEL LEAKAGE AND FIERY
FUEL LEAKS IN ACCIDENT REPORTS THE NHTSA SAID 9307140025 930714 BREAK
JAPAN'S FINANCE BUREAUCRACY  BY YOSHIO TERASAWA

TOKYO IN SUNDAY'S ELECTIONS JAPAN'S LIBERAL DEMOCRATIC PARTY MAY LOSE 
FOR THE FIRST TIME SINCE 1955 TO A COLLECTION OF SMALLER OPPOSITION
PARTIES SEVERAL FORCES WITHIN THIS COALITION INCLUDING MY OWN PARTY
PROMOTE A RETURN OF POLICYMAKING POWERS TO THE DIET AND AN OVERHAUL OF THE
BUREAUCRATIC STRUCTURE AT A TIME WHEN INTERNATIONAL FRICTION CONTINUES TO
RISE OVER JAPAN'S SLUGGISHNESS IN COORDINATING ITS POLICIES WITH GLOBAL
PRACTICES SUCH A CHANGE WOULD BE WELCOME PARTICULARLY IN THE FINANCIAL
SECTOR

FOR 50 YEARS THE POWERFUL FINANCE AND INTERNATIONALTRADE MINISTRIES HAVE
HAMMERED OUT FUNDAMENTAL POLICY VIRTUALLY FREE OF INFLUENCE OR INTERFERENCE
FROM POLITICIANS THIS STRUCTURE HAS MADE IT DIFFICULT FOR FOREIGN
NEGOTIATORS TO SWAY BUREAUCRATIC POLICIES IN JAPAN DECISIONS ARE NOT MADE
BY THE FRONT MEN AT THE NEGOTIATING TABLE BUT BY BUREAUCRATS BACK AT THE
MINISTRIES ALL THE DISPUTES OVER JAPANESE FINANCIAL MARKET ACCESS ARE
LINKED TO THE MINISTRY OF FINANCE'S UNREASONABLE LEVEL OF INTERFERENCE IN
MARKET ACTIVITIES

THE GOAL THEREFORE SHOULD BE TO CLARIFY AND RESTRICT THE ROLE OF THE
MINISTRY HERE ARE THREE WAYS TO START

IN THE US A FIRM CAN ENGAGE IN THE SECURITIES BUSINESS SO LONG AS IT
REGISTERS WITH THE SEC UNDERWRITERS NEED ONLY ADHERE TO CERTAIN CONVENTIONS
ESTABLISHED BY THE AGENCY THE SEC'S MOST SIGNIFICANT CONTRIBUTION IS THAT
IT DEMANDS FULL DISCLOSURE AND THEREBY EMPOWERS INVESTORS TO MAKE INFORMED
DECISIONS ON EQUITY AND DEBT FINANCING THIS SYSTEM BASED ON THE FREE
EXCHANGE OF INFORMATION HAS PRODUCED A LEAN SECURITIES MARKET CHARACTERIZED
BY INVESTOR CHOICE

IN JAPAN INVESTORS ARE NOT SO LUCKY THE PUBLIC IS NOT ALLOWED TO SELECT
STOCKS OR BONDS FREE OF GUIDANCE FROM THE GOVERNMENT AND COMPANIES ARE NOT
FREE TO DEAL IN STOCKS ON THEIR OWN MERIT NO JAPANESE COMPANY CAN ISSUE
SECURITIES WITHOUT EXPRESS MINISTRY CONSENT TO SECURE THAT CONSENT REQUIRES
THE SUPPLICANT TO VISIT THE MINISTRY BOW DOWN LOW BEFORE DOZENS OF
BUREAUCRATS AND PRAY THAT HIS WISH WILL BE GRANTED AND POLITICIANS ARE
KNOWN TO EXPLOIT THEIR LONGSTANDING RELATIONSHIPS WITH PET BUREAUCRATS TO
THE BENEFIT OF BUSINESSES THAT CONTRIBUTE TO THEIR POLITICAL ORGANIZATIONS
IT IS IMPOSSIBLE EVEN TO SELL STOCKS WITHOUT A LICENSE ONE SO DIFFICULT
TO OBTAIN THAT NO NEW JAPANESE SECURITIES FIRMS HAVE BEEN ESTABLISHED SINCE
1965

JAPAN TIGHTLY REGULATES BROKER COMMISSIONS VIA THE ASSOCIATION OF BROKERS
AND DEALERS WHICH IS ONLY NOMINALLY INDEPENDENT OF THE MINISTRY OF FINANCE
THE MINISTRY IS VISIBLY ACTIVE IN THE RATEDETERMINING PROCESS AND ALSO
EXERTS PRESSURE BEHIND THE SCENES RATE REGULATION KEEPS MORE BROKERAGE
FIRMS AFLOAT BUT IT DOES NOT MAKE THEM COMPETITIVE

INFLATED COMMISSION RATES IN JAPAN HAVE LED MANY CLIENTS AND POTENTIAL
CLIENTS TO TURN TO OFFSHORE BROKERAGE FIRMS SO JAPANESE BROKERAGE FIRMS
FIND OTHER MEANS TO ATTRACT CUSTOMERS SPECIFICALLY THROUGH
LOSSCOMPENSATION GUARANTEES

WHILE THE TOKYO STOCK MARKET WAS STRONG AND RISING IN THE LATE 1980S MANY
TOP SECURITIES FIRMS GUARANTEED THEIR MAJOR CUSTOMERS MINIMUM RATES OF
RETURN ON INVESTMENTS THIS WAS NO PROBLEM UNTIL THE MARKET WENT SOUR AND
INVESTORS BEGAN TO CALL IN THEIR CHIPS NOW THESE SECURITIES FIRMS 
NOMURA DAIWA YAMAICHI AND NIKKO AS WELL AS A CLUSTER OF SMALLER FIRMS 
ARE IN HOT WATER NOT ONLY WITH THEIR CLIENTS BUT WITH THE MINISTRY WHICH
HAS BEEN THOROUGHLY EMBARRASSED BY REVELATIONS OF ITS KNOWLEDGE OF SUCH
PRACTICES AND ITS UNWILLINGNESS TO FORM STRICT GUIDELINES TO DISCOURAGE
THEM

ON WALL STREET BAD SECURITIES COMPANIES GO BANKRUPT AND GOOD ONES DON'T
INVESTORS WHO MAKE BAD CHOICES LOSE AND THOSE WHO MAKE GOOD CHOICES WIN
THIS HARSH MARKET DISCIPLINE IS THE KIND OF THING THE MINISTRY DREADS IT
APPARENTLY CONSIDERS ITSELF AND JAPAN SUCCESSFUL AS LONG AS HUNDREDS OF
LARGE FIRMS REMAIN AFLOAT REGARDLESS OF HOW WELL THEY ACTUALLY PERFORM FOR
THEIR CUSTOMERS

IN LIGHT OF THE RECENT FINANCIAL SCANDALS IT IS CLEAR THAT THE MINISTRY
MUST REWORK ITS DEFINITIONS OF SUCCESS IT SHOULD DEREGULATE COMMISSION
RATES TO DRAW COMPETITION AMONG SECURITIES FIRMS INTO THE OPEN THERE IS
SOME MOVEMENT IN THIS DIRECTION THE SECURITIES AND EXCHANGE COUNCIL HAS
RECOMMENDED THAT COMMISSION FEES ON ORDERS OF MORE THAN ONE BILLION YEN
92 MILLION BE DEREGULATED IF THE MINISTRY APPROVES THIS PROPOSAL IT
WILL TAKE EFFECT IN APRIL 1994

RATE DEREGULATION WOULD PROBABLY LEAD TO BANKRUPTCIES AMONG SOME
LONGESTABLISHED BROKERAGE FIRMS BUT SUCH DISADVANTAGES ARE OUTWEIGHED BY
THE BENEFITS OF LOWER COMMISSION RATES TO THE CONSUMER AND A MORE
TRANSPARENT BUSINESS ENVIRONMENT FOR THE INDUSTRY

IN RESPONSE TO A FLOOD OF SECURITIESINDUSTRY SCANDALS THE MINISTRY OF
FINANCE CREATED THE SECURITIES AND EXCHANGE SURVEILLANCE COMMISSION LAST
JULY HOWEVER THIS REGULATORY BODY PLAYS A SUBORDINATE ROLE WITHIN THE
MINISTRY ONLY LIMITED CHANGE IS POSSIBLE UNTIL AN AGENCY AUTONOMOUS OF THE
MINISTRY IS ESTABLISHED

STOCK MARKETS HATE UNCERTAINTY AND UNFAIRNESS BUT THE JAPANESE MARKET AND
THE OPERATIONS OF THE MINISTRY ARE CHARACTERIZED BY A NOTABLE ABSENCE OF
STANDARD RULES BECAUSE REGULATION IS LARGELY A MATTER OF BUREAUCRATIC WHIM

THIS BATTLE IS NOT GOING TO BE WON EASILY FOR ONE THE JAPANESE BUREAUCRACY
IS MADE UP ALMOST EXCLUSIVELY OF GRADUATES FROM THE VERY BEST JAPANESE
UNIVERSITIES CITIZENS WHO WERE ELEVATED TO IMMORTAL STATUS THE DAY THEY
RECEIVED THEIR ACCEPTANCE LETTERS FROM TOKYO UNIVERSITY THEY ARE INSTILLED
WITH THE ETHOS THAT THEY ARE MORE CLEVER THAN THE REST OF US AND ARE
THEREFORE ENTITLED INDEED OBLIGATED TO GUIDE THE DESTINY OF THE NATION

MOREOVER IT IS NOT UNCOMMON FOR A HIGHLEVEL BUREAUCRAT AFTER RETIREMENT TO
ASSUME TOP CONSULTANCY POSTS WITHIN THE INDUSTRY HE REGULATED THIS CONCEPT
IS REFERRED TO AS AMAKUDARI OR DESCENT FROM HEAVEN SUCH EXBUREAUCRATS
ARE ABLE TO USE THEIR KNOWHOW AND CONNECTIONS TO WIN PRIVILEGES FROM THE
BUREAUCRACY AT THE MINISTRY OF FINANCE THEN THEY HAVE ALL THE MORE REASON
TO KEEP THEIR HANDS ON AS MUCH POLICY AND REGULATION AS POSSIBLE BEFORE
RETIRING

SHOULD THE INEFFICIENCIES AND INCONSISTENCIES IN ITS FINANCIAL MARKETS NOT
BE CORRECTED SOON JAPAN WILL FURTHER ISOLATE ITSELF FROM ITS TRADING
PARTNERS AS AN ISLAND NATION THAT BENEFITS IMMEASURABLY FROM INTERNATIONAL
TRADE JAPAN MUST AVOID THIS COURSE AT ALL COSTS

MR TERASAWA A FORMER NOMURA SECURITIES EXECUTIVE IS A MEMBER JAPAN NEW
PARTY OF THE UPPER HOUSE OF THE DIET 9307140024 930714 MARKETING BRIEF
 NOTED

NEWSPAPERS THE NEW YORK DAILY NEWS NAMED BRITISH JOURNALIST MARTIN DUNN
EDITORINCHIEF MR DUNN 38 YEARS OLD ACCEPTED A JOB AS EDITOR OF THE
BOSTON HERALD IN MARCH AND HE NOW LEAVES THE NEWS CORPOWNED TABLOID TO
COMPETE AGAINST THE NEW YORK POST NOW UNDER THE CONTROL OF NEWS CORP AT
THE NEWS MR DUNN WILL CONCENTRATE ON STRATEGIC DIRECTION A SPOKESWOMAN
SAID LOU COLASUONNO WILL REMAIN EDITOR OVERSEEING DAYTODAY OPERATIONS OF
THE NEWSPAPER IN BOSTON MR DUNN WILL BE SUCCEEDED BY ALAN EISNER HERALD
MANAGING EDITOR 9307140023 930714 VAGUE NEW WORLD DIGITAL MEDIA
BUSINESS TAKES FORM AS A BATTLE OF COMPLEX ALLIANCES  
PARTNERSHIPS ACROSS INDUSTRIES COALESCE IN CHAOTIC RACE TO ESTABLISH A
MARKET  A PATTERN AKIN TO KEIRETSU'  BY STEPHEN KREIDER
YODER AND G PASCAL ZACHARY STAFF REPORTERS OF THE WALL STREET JOURNAL

TO MARTIN DAVIS CHAIRMAN OF PARAMOUNT COMMUNICATIONS INC IT SEEMS AS IF A
FLOODGATE OPENED SOME TIME IN THE PAST MONTH EVERYONE WANTS TO TALK ABOUT
MAKING A DEAL WITH HIS MOVIEANDPUBLISHING COMPANY

THE STORY IS THE SAME AT APPLE COMPUTER INC WHICH RECENTLY HELD
SIMULTANEOUS AND VERY PRIVATE TALKS WITH AMERICAN TELEPHONE & TELEGRAPH CO
AND TIME WARNER INC ABOUT POSSIBLE JOINT INVESTMENTS

JAMES CLARK CHAIRMAN OF SILICON GRAPHICS INC SAYS THAT SINCE HIS COMPUTER
COMPANY SIGNED A PACT WITH TIME WARNER HE HAS BEEN BOMBARDED WITH CALLS
FROM OTHER CABLE OPERATORS AND AT MCCAW CELLULAR COMMUNICATIONS INC THE
NATION'S LARGEST CELLULARTELEPHONE CONCERN CHIEF EXECUTIVE CRAIG MCCAW
SAYS I'M IN ALLIANCE SHOCK HE ADDS EVEN A MONTH AGO THE RAGE FOR
ALLIANCES HADN'T HIT US TOO HARD

SHOCK IS A COMMON FEELING THESE DAYS AMONG LEADERS OF FIVE OF THE WORLD'S
BIGGEST INDUSTRIES COMPUTING COMMUNICATIONS CONSUMER ELECTRONICS
ENTERTAINMENT AND PUBLISHING UNDER A COMMON TECHNOLOGICAL LASH THE
INCREASING ABILITY TO CHEAPLY CONVEY HUGE CHUNKS OF VIDEO SOUND GRAPHICS
AND TEXT IN DIGITAL FORM THEY ARE TRANSFORMING AND CONVERGING ALBEIT AT
DIFFERENT SPEEDS THE NEWSLETTER DIGITAL MEDIA RECENTLY COMPILED A LIST OF
JUST THOSE ALLIANCES FORMED TO FOSTER INTERACTIVE TELEVISION IT WENT ON FOR
SIX PAGES OF SMALL PRINT

ON THE SURFACE THE PELLMELL RUSH FOR ALLIES LOOKS LIKE CHAOS BUT THERE IS
A CLEAR PATTERN UNDERNEATH IT ALL THESE COMPANIES BETTING ON THE EMERGENCE
OF A VAST DIGITAL INDUSTRY ARE JOCKEYING FOR POSITION IN WHAT THEY EXPECT
TO BE ITS THREE DISTINCT SEGMENTS

 THE MANIPULATION OF INFORMATION WITH OPERATING SOFTWARE PERSONAL
COMPUTERS HANDHELD COMMUNICATORS TV CONTROLLERS AND THE LIKE TO LET
CONSUMERS FILTER AND CUSTOMIZE THE FLOOD OF DATA TO FIT THEIR NEEDS

THE RIGHT COMBINATIONS OF CONTENT DELIVERY AND MANIPULATION COMPANY
STRATEGISTS BELIEVE WILL CREATE THE HOT PRODUCTS AND SERVICES OF THE
DIGITAL AGE WHILE MUCH ATTENTION IS FOCUSED ON INTERACTIVE TV MOVIES ON
DEMAND HOME SHOPPING AND ON MULTIMEDIA MACHINES SUCH AS CDROM PLAYERS
MEDIA EXECUTIVES HOPE THE DIGITAL WORLD WILL BE MUCH VASTER THEIR ULTIMATE
AIM IS TO ALLOW CONSUMERS TO OBTAIN ANYTHING ELECTRONIC AT ANY TIME IN THE
OFFICE AT HOME OR ON THE ROAD THROUGH AN ABUNDANCE OF DEVICES AND
NETWORKS WIRED AND WIRELESS

THE DEAL MAKERS CONCEDE THAT THEY DON'T KNOW WHICH PRODUCTS AND SERVICES
COULD TURN INTO BIG MARKETS PEOPLE KNOW WHAT THE SKELETON LOOKS LIKE BUT
THEY DON'T KNOW WHAT THE MUSCLES LOOK LIKE SAYS FRANK BIONDI CHIEF
EXECUTIVE OF CABLE OPERATOR VIACOM INC INTEL CORP CHIEF EXECUTIVE ANDREW
GROVE SAYS THAT WHEN SPECULATING ABOUT WHAT WILL BE A HIT I DON'T KNOW
WHAT THE HELL I'M TALKING ABOUT REALLY  WE'LL KNOW THE TRUTH WHEN WE
GET THERE

BUT MANY EXECUTIVES SAY THEY ARE COMPELLED TO GO AHEAD WITH ALLIANCES
PRECISELY BECAUSE FUTURE MARKETS LOOK SO FOGGY IN AN UNCERTAIN INDUSTRIAL
ATMOSPHERE THEY SAY ALLIANCES CAN HELP TO ESTABLISH TECHNICAL STANDARDS
AND SPREAD COSTS AND RISKS

THIS INEXORABLE DRIVE TOWARD ALLIANCES MAY EVEN AMOUNT TO A NEW CHAPTER IN
THE DEVELOPMENT OF CAPITALISM SINCE THE DECLINE OF THE GREAT INDUSTRIAL
TRUSTS 60 TO 80 YEARS AGO CORPORATE LEADERS HAVE TENDED TO BELIEVE THAT
THEIR COMPANY'S SUCCESS LAY IN THEIR OWN HANDS THE MOST POWERFUL
CORPORATIONS HAVE BUILT THEIR EMPIRES THROUGH ACQUISITIONS AND INTERNAL
EXPANSION TODAY THOUGH THEY ARE LOOKING TO SHARED GOALS AND COMMON
OWNERSHIP AT LEAST AS LONG AS THEIR DIGITAL BETS NEED HEDGING

IN THIS VAGUE NEW WORLD CORPORATE STRATEGISTS SEE THAT THEIR COMPANIES'
SUCCESS DEPENDS INCREASINGLY ON THE QUALITY OF THEIR ALLIES INEVITABLY
THIS WILL SPAWN OLIGOPOLIES SAYS LEWIS PLATT CHIEF EXECUTIVE OFFICER OF
HEWLETTPACKARD CO ADDS MR MCCAW YOU SORT OF SEE THE POINT WHERE THE
WORLD WILL TEAM UP INTO TWO THREE MAYBE FOUR GLOBAL ALLIANCES OVER THE
NEXT FIVE YEARS

TWO POTENTIALLY POWERFUL ALLIANCES ARE BEING FORMED AROUND TIME WARNER AND
AROUND TELECOMMUNICATIONS INC WHICH ARE THE NATION'S LARGEST CABLE
OPERATORS AND OWN INTERESTS IN NUMEROUS ENTERTAINMENT AND PUBLISHING
PROPERTIES AS WELL U S WEST INC A REGIONAL PHONE COMPANY PLANS TO INVEST
25 BILLION IN TIME WARNER WITH A HUNK OF THE FUNDS EARMARKED TO SPEED
INTERACTIVE TV SERVICES AND THE LAYING OF FIBEROPTIC CABLE SILICON
GRAPHICS HAS AGREED TO PROVIDE MICROPROCESSORS AND GRAPHICS SOFTWARE FOR A
TIME WARNER TEST OF INTERACTIVE TV TIME WARNER ALSO HAS ACCEPTED EQUITY
INVESTMENTS FROM ITOCHU CORP AND TOSHIBA CORP WHICH WILL WORK WITH YET
ANOTHER TIME WARNER PARTNER SCIENTIFICATLANTA INC TO BUILD CABLETV
BOXES WITH COMPUTING ABILITIES

TCI MEANWHILE HAS CLOSE TIES TO CABLE PROGRAMMERS THROUGH ITS INTEREST IN
LIBERTY MEDIA A TCI SPINOFF THAT OWNS PARTS OF PROGRAMMERS LIKE HOME
SHOPPING NETWORK AND THE DISCOVERY CHANNEL

TCI AND TIME WARNER REMAIN RIVALS BUT THE ENTHUSIASM FOR PARTNERSHIPS IS
SUCH THAT THEIR NETWORKS OF ALLIES ARE BEGINNING TO OVERLAP BOTH HAVE
INVESTMENTS IN TURNER BROADCASTING SYSTEM INC MICROSOFT CORP THE WORLD'S
BIGGEST SOFTWARE COMPANY IS CONSIDERING WAYS TO JOIN UP WITH BOTH IN
APRIL THE US UNIT OF JAPAN'S VIDEOGAME MAKER SEGA ENTERPRISES LTD SAID
IT WOULD TEAM WITH TIME WARNER AND TCI TO OFFER GAMES THROUGH CABLE SYSTEMS

MICROSOFT HAS ITS OWN ALLIANCES WITH INTEL THE WORLD'S LARGEST CHIP
COMPANY AND COMPAQ COMPUTER CORP THE THIRDBIGGEST PERSONALCOMPUTER
COMPANY TO DEVELOP SUCH THINGS AS DIGITAL SMART TELEPHONES PERSONAL DATA
COMMUNICATORS AND DIGITAL CONVERTERS FOR INTERACTIVE TV AT&T IS PROVIDING
ANOTHER POWERFUL AXIS FOR CROSSINDUSTRY DEALS CURRENTLY MANAGING 23
SEPARATE ARRANGEMENTS WITH OTHER COMPANIES JUST IN INTERACTIVE TV APPLE
AT&T MOTOROLA INC AND THE THREE BIGGEST CONSUMERELECTRONICS COMPANIES 
SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO AND PHILIPS ELECTRONICS NV 
OWN EQUAL PARTS OF GENERAL MAGIC INC WHICH HAS THE VAULTING AMBITION OF
DEVELOPING A COMMON COMMUNICATIONS LANGUAGE FOR THE DIGITAL WORLD WHILE
DEVELOPING SOFTWARE FOR INDIVIDUAL PARTNERS' WIRELESS PERSONAL COMMUNICATORS
AND OTHER DEVICES

THESE BIG PLAYERS ARE OCTOPUSES ALL WITH THEIR HANDS IN EACH OTHER'S
POCKETS JOHN MALONE TCI'S CHIEF EXECUTIVE SAID AT A RECENT MULTIMEDIA
CONFERENCE WHERE ONE INDUSTRY STARTS AND THE OTHER STOPS WILL BE HARD TO
DECIDE

TIME WARNER FOR INSTANCE HAS BIG PLANS FOR PIPING INTERACTIVE OR ENHANCED
PROGRAMMING THROUGH ITS CABLE SYSTEM BUT NEEDS HELP BUILDING A BETTER
DELIVERY SYSTEM A POWERFUL COMPUTER NETWORK AND THE OPERATING SOFTWARE THAT
WILL ALLOW CONSUMERS TO SURF EFFORTLESSLY THROUGH 500 DIGITAL CHANNELS
ENTER U S WEST MICROSOFT SILICON GRAPHICS AND A HORDE OF OTHER HELPMATES

THERE ARE REALLY NO TECHNOLOGY BARRIERS AT THIS POINT SAYS JOHN SCULLEY
APPLE'S CHAIRMAN IT'S ALL ABOUT ALLIANCES AND INVESTMENT NOT ABOUT
TECHNOLOGY HE RECENTLY RESIGNED HIS POST AS CHIEF EXECUTIVE TO CONCENTRATE
MORE INTENTLY ON ALLIANCEBUILDING

THE EMERGING ALLIANCES IN THE DIGITALINFORMATION INDUSTRY ARE LIKELY TO
BECOME A LOOSER MORE AMERICAN VERSION OF THE POWERFUL KEIRETSU THE
GROUPS OF CORPORATIONS HELD TOGETHER THROUGH CROSSSHAREHOLDING THAT
DOMINATE JAPANESE INDUSTRY ALREADY COMPANIES LIKE TIME WARNER ARE STAKING
THEIR FUTURES ON SUCH FINANCIAL CLANS WE DECIDED TO BUILD THE COMPANY NOT
BY THE TRADITIONAL MACHO AMERICAN STRATEGY OF ACQUIRING SOMEONE AND
CONTROLLING THEM SAYS GERALD LEVIN TIME WARNER'S CHIEF EXECUTIVE RATHER
HE SAYS THE COMPANY'S STRATEGY IS TO FORM PARTNERSHIPS THROUGH EQUITY DEALS
THAT ARE TANTAMOUNT TO BLOOD EXCHANGES

IN CONTRAST TO THEIR JAPANESE FORERUNNERS DIGITAL KEIRETSU HAVE A PROTEAN
CHARACTER CAUSED BY THE SHIFTING AND SOMETIMES CONFLICTING LOYALTIES OF
THEIR MEMBERS SOME ARE LOOSELY TIED NOT BOUND BY EQUITY INVESTMENTS IN
OTHER CASES OLDFASHIONED MERGERS ARE JUST THE TICKET ELECTRONIC RETAILERS
HOME SHOPPING NETWORK AND QVC NETWORK INC SAID THIS WEEK THAT THEY WILL
MERGE IN A 14 BILLION STOCK SWAP A TRANSACTION THAT WILL PUT CONTROL OF A
BUDDING CABLE BEHEMOTH IN THE HANDS OF THREE POWERFUL PARTNERS TCI'S MR
MALONE QVC CHAIRMAN BARRY DILLER AND CABLE OPERATOR COMCAST COMMUNICATIONS
INC

MANY ALLIANCES WILL VANISH OVER TIME SAYS INTEL'S MR GROVE BECAUSE THEIR
OBJECTIVES AREN'T ALWAYS CLEAR I'VE HAD MY SHARE OF STRATEGIC ALLIANCES
THAT WERE CRISP AND CLEAR AND EVEN THEN THE OVERWHELMING MAJORITY BECOME
DYSFUNCTIONAL HE SAYS

AS IN JAPAN THE QUESTION IS WHEN DOES A DIGITAL KEIRETSU BECOME A CABAL
MANY COMPANIES FEAR BEING LEFT OUT IN THE COLD WHAT IF SAY U S WEST GETS
PREFERENCE IN DEVELOPING DELIVERY SYSTEMS FOR TIME WARNER BECAUSE OF ITS
TIME WARNER INVESTMENT OR MICROSOFT GETS A LOCK ON DEVELOPING OPERATING
SOFTWARE FOR INTERACTIVE TV SHOULD NETWORK OPERATORS SHOW A BIAS TOWARD THE
CONTENT OR COMPUTERS THAT THEY THEMSELVES OWN IT COULD SPARK CONFLICT THAT
WOULD SAP RESOURCES AND HARM CONSUMERS WARNS MICHAEL P SCHULHOF CHIEF
EXECUTIVE OFFICER OF SONY OF AMERICA WHO IS CONCERNED ABOUT THE
MONOPOLISTIC TENDENCIES OF SOME CABLE AND TELEPHONE COMPANIES

LAST WEEK REP EDWARD MARKEY OF MASSACHUSETTS CHAIRMAN OF THE HOUSE
SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE SENT A LETTER TO FEDERAL
REGULATORS WARNING THAT A CABLE ALLIANCE BETWEEN TCI TIME WARNER AND
MICROSOFT COULD CLOSE THE MARKET TO COMPETITIVE ENTRANCE

SOME OF THE LARGE PLAYERS THOUGH SAY THEY DON'T WANT TO ENTER EVERY DOMAIN
AT&T WHOSE TENTACLES EXTEND ACROSS COMPUTING AND WIRED AND WIRELESS
TELEPHONE SAYS IT WON'T TRY TO DELIVER CABLE TV INTO HOMES EVEN THOUGH IT
MAY HAVE THE CAPACITY TO DO SO ROBERT ALLEN AT&T'S CHAIRMAN EVEN RULES
OUT THE PURCHASE OF A CABLE COMPANY I'D RATHER BE A SUPPLIER OF SWITCHING
TECHNOLOGY TO THE WHOLE INDUSTRY RATHER THAN TRYING TO FIGURE OUT WHICH
CABLE COMPANY I'M GOING TO OFFEND HE SAYS

WHILE THE RELAXATION OF ANTITRUST RULES HAS HELPED SPAWN ALLIANCES
REGULATORY BARRIERS FOR CABLE AND TELECOMMUNICATIONS COMPANIES STILL EXIST
AND COULD HAMPER THE CONVERGENCE OF INDUSTRIES GOVERNMENT POLICY WILL
SHAPE THE PACE OF THE ONGOING TRANSFORMATION OF INFORMATION INDUSTRIES
SAYS ALFRED SIKES FORMER CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION
A CRUCIAL US REGULATORY BODY AND CHIEF OF HEARST CORP'S NEW MEDIA UNIT

THOUGH THE RISE OF DIGITAL KEIRETSU MAY SOUND OMINOUS IT COULD BE GOOD NEWS
FOR THE US ECONOMY JUST AS THE COMPUTER REVOLUTION CREATED DEMAND FOR NEW
PRODUCTS AND SERVICES THE DIGITIZATION OF INFORMATION COULD PROPEL A NEW
WAVE OF DEVELOPMENT FOR INSTANCE MOTOROLA PLANS TO SPEND 34 BILLION
BUILDING A DIGITAL PHONE AND DATA NETWORK IT WILL REQUIRE SCORES OF
ADVANCED SATELLITES PROVIDING SIGNIFICANT NEW BUSINESS FOR LOCKHEED CORP
AND RAYTHEON CORP BOTH HIT HARD BY THE SHRINKAGE OF THE DEFENSE INDUSTRY

HOMEGROWN KEIRETSU ALSO ARE LIKELY TO FURTHER HONE AMERICA'S GROWING EDGE
IN GLOBAL ADVANCEDTECHNOLOGY MARKETS BECAUSE THE US IS THE MOST
INNOVATIVE COUNTRY IN THIS AREA AND ITS COMPANIES HAVE THE BEST CHANCE TO
EXPORT THEIR EXPERTISE ABROAD SAYS MICHAEL DORNEMANN A GERMAN NATIONAL
WHO HEADS THE MUSIC BUSINESS OF THE GERMAN MEDIA CONGLOMERATE BERTELSMANN
AG

TIME WARNER'S DEAL WITH U S WEST IS A GOOD EXAMPLE OF HOW THE KEIRETSU
STRATEGY WORKS THE BABY BELL GETS A 255 INTEREST IN TIME WARNER'S
ENTERTAINMENT UNIT PROVIDING IT WITH A CHANCE TO PARTICIPATE IN POTENTIALLY
HEFTY UNREGULATED PROFITS THOUGH CRITICS SAY TIME WARNER IS GIVING AWAY
TOO BIG A SHARE OF ITS MOST VALUABLE ASSETS AND MORTGAGING FUTURE CASH FLOW
THE COMPANY GETS A MUCHNEEDED 25 BILLION TO EXPAND ITS FIBEROPTIC CABLE
NETWORK AND EASE ITS HEAVY DEBT LOAD BOTH COMPANIES WILL PROVIDE TECHNOLOGY
FOR AN EXPERIMENTAL INTERACTIVE TV SERVICE IN FLORIDA EARLY NEXT YEAR

BETWEEN THEM THE TWO COMPANIES SPAN THE PROGRAMMING AND DELIVERY SECTORS
WITH INTERESTS IN CABLE TV MOVIE AND MUSIC PRODUCTION MAGAZINE PUBLISHING
AND REGIONAL TELEPHONE SERVICE THE ALLIANCE UNDERSCORES THE PERCEIVED
IMPORTANCE OF MARRYING PROGRAMMING WITH A ROUTE INTO THE HOME BUT BOTH
COMPANIES RECOGNIZE THAT DESPITE THEIR IMMENSE SCOPE THEY NEED TO ASSEMBLE
EVEN MORE PIECES PARTICULARLY THE PARTS NEEDED TO MANAGE DIGITAL NETWORKS
AND MANIPULATE INTERACTIVE PROGRAMS

TIME WARNER HUNGRY FOR MORE SOFTWARE EXPERTISE IS TALKING ABOUT DEALS WITH
ARCHRIVALS APPLE AND MICROSOFT ON THE ASSUMPTION THAT ONE OR THE OTHER IS
LIKELY TO TRIUMPH SO WHY NOT BET ON BOTH U S WEST MEANWHILE ENVISIONS
CLOSER TIES TO MAKERS OF MOVIES SOFTWARE CHIPS AND COMPUTERS BY
PARTICIPATING IN ALL LEVELS OF THE DIGITAL BUSINESS YOU KNOW WHERE TO MAKE
MONEY SAYS CHIEF EXECUTIVE RICHARD MCCORMICK

TCI WHICH HAS BEHAVED LIKE A DIGITAL KEIRETSU FOR MANY YEARS HAS ENTERED
INTO AN AGREEMENT WITH TIME WARNER TO DEVELOP STANDARDS FOR THE SOFTWARE AND
HARDWARE NEEDED TO SUPPORT INTERACTIVE TV IN THAT ROLE IT IS ALSO TALKING
WITH MICROSOFT TCI IS THE NATION'S LARGEST CABLETV OPERATOR AND OWNS
CHUNKS OF TURNER BROADCASTING TCI HAS ALLIANCES WITH AT&T AND U S WEST AS
WELL AS ITS CABLE RIVALS

TCI'S CHIEF EXECUTIVE MR MALONE HAS LONG RECOGNIZED THAT A DELIVERY
SYSTEM ISN'T WORTH MUCH WITHOUT SOMETHING TO PUT THROUGH IT MR MALONE
DESCRIBES HIS BUSINESS AS ELECTRONIC DISTRIBUTION IN CABLE HE SAID AT
THE RECENT MULTIMEDIA CONFERENCE WHAT'S IMPORTANT IS TO HAVE ENOUGH
SERVICE SO PEOPLE SUBSCRIBE  I'M INTERESTED IN HAVING A LOT OF
PRODUCTS ON THE SHELF HE EXPLAINS THAT IF HE DOESN'T INVEST IN SOME
PROGRAMS OR SERVICES THEY MIGHT NOT EXIST DETRACTING FROM THE APPEAL OF
THE INFORMATION HIGHWAY HE IS SPENDING LOTS OF MONEY TO CREATE

AT THE SAME MEETING APPLE'S MR SCULLEY SAID THE COMING INDUSTRIAL ORDER
WILL FOLLOW THE MODEL WHICH JOHN MALONE HAS PIONEERED  NOT
NECESSARILY OWNING LAYERS BUT PARTICIPATING IN DIFFERENT PARTS OF THE VALUE
CHAIN

PARAMOUNT FOR INSTANCE IS POSITIONING ITSELF TO EXPLOIT AS MANY PARTS OF
THAT CHAIN AS POSSIBLE AND TO MAKE ITSELF ATTRACTIVE TO OTHER
ALLIANCESEEKERS BY CONVERTING ITS MOVIES TEXTBOOKS AND OTHER SOFTWARE
INTO DIGITAL FORMAT AND BY BUYING THE DIGITAL RIGHTS TO ANY NEW MATERIAL IT
ACQUIRES THE COMPANY HAS SIGNED DEALS TO PUT ITS MOVIES ON COMPACT DISKS
AND TO DISTRIBUTE THEM OVER A SATELLITE SYSTEM PLANNED BY GENERAL MOTORS
CORP'S HUGHES AIRCRAFT CO UNIT AND IT IS SUPPLYING SAMPLES OF ITS DIGITAL
WARES TO PHONE COMPANIES AND A MULTITUDE OF OTHER FIRMS GROPING FOR WAYS TO
ENTER THE DIGITAL WORLD WE ARE THERE WITH OUR PRODUCT WHEREVER THERE IS A
NEW TECHNOLOGY SAYS MR DAVIS PARAMOUNT'S CHIEF EXECUTIVE

ASSEMBLING THE DIFFERENT PIECES IS SO COMPLEX AND EXPENSIVE AND THE
POTENTIAL MARKETS ARE SO HUGE THAT EXTENSIVE ALLIANCES ARE NEEDED EVEN
WITHIN ONE DIGITAL ARENA FOR EXAMPLE KALEIDA LABS A JOINT VENTURE OF
APPLE AND IBM HAS AN ALLIANCE WITH MOTOROLA AND SCIENTIFICATLANTA TO
DEVELOP THE DIGITAL CONVERTERS AND NETWORKS NEEDED TO MANIPULATE VIDEO
VOICE AND DATA OVER INTERACTIVE TV THE TWO BEHEMOTHS OF THE
PERSONALCOMPUTER INDUSTRY MICROSOFT AND INTEL HAVE THEIR OWN ALLIANCE
WITH GENERAL INSTRUMENT CORP TO DO MUCH THE SAME THING

INTEL AND MICROSOFT WHICH WOULD RATHER ALLY THAN BUY ARE TRYING TO EXTEND
THEIR HEGEMONY OVER PCS TO CABLE TV OFFICE EQUIPMENT TELEPHONE EXCHANGES
AND PERSONAL COMMUNICATORS IN PURSUIT OF THESE GOALS MICROSOFT WITH 2
BILLION IN CASH EVEN SEEMS WILLING FOR THE FIRST TIME EVER TO CEMENT
ALLIANCES WITH INVESTMENTS

WE COULD GET INTO A SITUATION SAYS MICROSOFT CHAIRMAN WILLIAM GATES III
WHERE SOMEONE IS DOING SOMETHING SUPER CAPITAL INTENSIVE AND THEY SAID
BRING SOFTWARE EXPERTISE BUT ALSO HELP FINANCE IT

ONE POTENTIALLY STRESSFUL REQUIREMENT OF AMERICANSTYLE KEIRETSU IS THE NEED
FOR COMPETITORS TO COOPERATE IN ONE DIGITAL ARENA WHILE BANGING HEADS IN
ANOTHER TCI FOR EXAMPLE WANTS TO USE THE EXTRA CAPACITY ON ITS CABLE
SYSTEM TO OFFER TELEPHONE AND DATA SERVICES IN COMPETITION WITH THE BELL
OPERATING COMPANIES TIME WARNER WANTS TO DO THE SAME THING YET BOTH TIME
WARNER AND TCI ARE ALLIED WITH TELEPHONE COMPANIES IN OTHER DIGITAL
PROJECTS

U S WEST IN TURN HAS ALLIED WITH TIME WARNER IN THE US BUT WITH TCI IN
ENGLAND YOU VERY MUCH HAVE TO ACCEPT THAT YOU ARE GOING TO COMPETE AGAINST
A COMPANY IN SOME PLACES AND COOPERATE IN OTHERS SAYS CHUCK LILLY THE U S
WEST EXECUTIVE IN CHARGE OF THE COMPANY'S CABLE CELLULAR AND PUBLISHING
UNITS

WITHIN THE NEW GROUPS THE MOST PROFITABLE COMPANIES OFTEN FEEL UNEASY
BECAUSE THEY KNOW THAT THEIR FELLOW MEMBERS IN THEIR HEART OF HEARTS LUST
AFTER THEIR BUSINESSES SOME MANUFACTURERS AND DELIVERY COMPANIES ALTHOUGH
NOT ALL WOULD LIKE TO EXPAND INTO PROGRAMMING WHICH CAN BE SOLD OVER AND
OVER AGAIN AND IS THEREFORE POTENTIALLY THE MOST PROFITABLE ARENA

ONE OF THE MOST INTERESTING STUDIES IN UNEASY COOPERATION AMONG ARCHRIVALS
IS THE GENERAL MAGIC CONSORTIUM TWO OF ITS INVESTORS MOTOROLA AND AT&T
ARE FOES IN WIRELESS NETWORKS AND DEVICES WHILE THREE OTHERS SONY
MATSUSHITA AND PHILLIPS FIGHT IT OUT IN CONSUMER ELECTRONICS ALL SIX
OWNERS INCLUDING APPLE PLAN TO SELL HANDHELD PERSONAL COMMUNICATORS THAT
PROVIDE MESSAGE EXCHANGING DATABASES ELECTRONIC SHOPPING AND OTHER
SERVICES TO CONSUMERS

PREVENTING THE NATURAL SUSPICIONS OF RIVALS FROM BREAKING GENERAL MAGIC INTO
PIECES IS TOUGH ENGINEERS AT THE VENTURE WORK ON FUTURE PRODUCTS THAT WILL
COME FROM ALL OF THE SIX MAJOR BACKERS SO SECRECY IS CRUCIAL WHEN THE
BACKERS VISIT GENERAL MAGIC'S PREMISES IN MOUNTAIN VIEW CALIF THEY CANNOT
ENTER A LOCKED DESIGN WING WHERE FUTURE PRODUCTS FROM ALL THE ALLIANCE
MEMBERS LIE IN PLAIN VIEW ON WORKBENCHES EVEN WITH THESE SAFEGUARDS
JEALOUSIES ABOUND

EVERY DAY WE GET REPROACHES FROM ONE ALLIANCE MEMBER OR ANOTHER SUGGESTING
THAT WE PERHAPS ARE PAYING TOO MUCH ATTENTION TO A RIVAL'S PRODUCT SAYS
JOANNA HOFFMAN A GENERAL MAGIC VICE PRESIDENT

BUT GENERAL MAGIC AND THE KALEIDA ALLIANCE BETWEEN APPLE AND IBM ARE
CONSIDERED VITALLY NECESSARY BECAUSE THEIR MAIN JOB IS TO CREATE COMMON
LANGUAGES ALLOWING DIGITAL DEVICES TO TALK TO EACH OTHER GENERAL MAGIC
HOPES ITS COMMUNICATIONS SOFTWARE TELESCRIPT WILL BE THE LINGUA FRANCA OF
NETWORKS ALLOWING ANY DEVICE TO TALK TO ANY NETWORK OR ANY OTHER DEVICE
KALEIDA HOPES ITS COMMUNICATIONS SOFTWARE SCRIPTX WILL BE A STANDARD
ALLOWING ANY CDROM DEVICE TO PLAY ANY KIND OF CD WITHOUT SUCH STANDARDS
THE MARKETS FOR NETWORKS AND DEVICES WILL BE FRAGMENTED DRIVING UP THEIR
COSTS AND RETARDING THEIR GROWTH

EVEN WORSE THINGS CAN HAPPEN IF A DIGITAL ALLIANCE DOESN'T HAVE THE RIGHT
MIX OF PARTNERS AN AMBITIOUS VENTURE LAUNCHED IN MAY BY IBM AND THE
VIDEOSTORE CHAIN BLOCKBUSTER ENTERTAINMENT HAS COME TO BE SEEN AS A
TEXTBOOK CASE OF HOW NOT TO FORM A DIGITAL KEIRETSU

THE TWO COMPANIES SAID THEY WOULD LAUNCH A COMPUTER NETWORK THAT WOULD STORE
AND DOWNLOAD MUSIC CDS ON DEMAND AT BLOCKBUSTER'S STORES THE MOTIVES OF
IBM AND BLOCKBUSTER WERE SENSIBLE AUTOMATE THE EXPENSIVE PROBLEM OF
STOCKING CDS TO AVOID THE PROBLEM OF CUSTOMERS WALKING AWAY EMPTYHANDED
BECAUSE THEY CAN'T FIND THE DISK THEY WANT IBM WAS INTERESTED BECAUSE THE
SOLUTION REQUIRES HIGHEND COMPUTERS ITS SPECIALITY THAT CAN DELIVER A
COPY OF ANY ONE OF THOUSANDS OF CDS IN A FEW MINUTES BLOCKBUSTER WHOSE
HUGE VIDEORENTAL BUSINESS IS POTENTIALLY THREATENED BY PLANNED CABLE AND
TELEPHONE VENTURES THAT DISPATCH MOVIES DIRECTLY TO THE HOME ON DEMAND IS
EAGER TO DIVERSIFY INTO MUSIC RETAILING

TO BOTH COMPANIES THE PROPOSED COMPUTERBASED SYSTEM SEEMED LIKE A WINNER
BUT THEY FAILED TO GET THE APPROVAL OF THE MOST INFLUENTIAL MUSIC PRODUCERS
THIS SELECT GROUP WHICH INCLUDES SONY AND TIME WARNER BALKED AT
COOPERATING COMPLAINING THAT THEIR CDS WOULD TOO EASILY BE PIRATED AND THAT
PRODUCERS WOULD LOSE CONTROL OVER PACKAGING THE PROJECT IS CONSIDERED
STILLBORN

EVEN MEMBERSHIP IN A SEEMINGLY POWERFUL GROUP IS NO GUARANTEE OF SUCCESS
BECAUSE NO ONE KNOWS AT THIS EARLY STAGE WHICH STANDARDS AND WHICH PRODUCTS
AND SERVICES WILL PREVAIL IT IS ALMOST IMPOSSIBLE TO PICK THE RIGHT'
ALLIANCE TODAY SAYS HEWLETTPACKARD'S CHIEF MR PLATT SOME COMPANIES
SEEM TO BE TRYING TO JOIN WHATEVER KEIRETSU IS FORMING JUST OUT OF FEAR THAT
THEY WON'T BACK THE RIGHT HORSE UNCERTAINTY IS FORCING COMPANIES TO HEDGE
THEIR BETS SAYS MR SCHULHOF OF SONY OF AMERICA

IT IS AN UNCERTAINTY THAT WILL HAVE TO BE TOLERATED FOR A LONG TIME BECAUSE
EVEN THE FIRST WAVE OF DIGITAL PRODUCTS SUCH AS INTERACTIVE TV AND PERSONAL
COMMUNICATORS AREN'T EXPECTED TO SELL WELL FOR AT LEAST ANOTHER THREE TO
FIVE YEARS IF THEN

YOU THINK VICTORY IS OVER THE HORIZON SAYS MICROSOFT'S MR GATES BUT
I'M SURE THAT WE AND OTHERS WILL BE STRIVING TOWARD IT FOR THE REST OF THE
DECADE 9307140022 930714 CORRECTIONS & AMPLIFICATIONS

BENNY CHANG AN EMPLOYEE OF OSLO TRADING CO WAS ACQUITTED OF A SINGLE
CONSPIRACY COUNT AGAINST HIM IN A FEDERAL IMPORT FRAUD CASE IN WHICH
CHINATEX AMERICA INC AND ONE OF ITS OFFICIALS WERE CONVICTED ON SEVERAL
COUNTS AN ARTICLE YESTERDAY ABOUT THE CHINATEX CASE DIDN'T NOTE MR CHANG'S
ACQUITTAL

UNITED FUNDS MUTUAL FUNDS PORTFOLIOS CAN BE REACHED BY CALLING THE TOLLFREE
NUMBER 800 3665465 THE PHONE NUMBER WAS MISSTATED IN THE MUTUAL FUND
SECTION PUBLISHED JULY 6 9307140021 930714 GE'S EARNINGS WERE UP 10 
IN 2ND QUARTER  BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL
STREET JOURNAL

GENERAL ELECTRIC CO POSTED A 10 INCREASE IN SECONDQUARTER EARNINGS
DESPITE WHAT CHAIRMAN JOHN F WELCH JR DESCRIBED AS A DIFFICULT ECONOMIC
ENVIRONMENT

IN A RECORD FOR ANY SECOND QUARTER GE'S NET ROSE TO 133 BILLION OR 156
A SHARE FROM 122 BILLION OR 142 A SHARE A YEAR EARLIER

REVENUE GREW MORE SLOWLY THAN EARNINGS INCREASING 4 TO 1476 BILLION FROM
1418 BILLION

RUSSELL LEAVITT A SALOMON BROTHERS ANALYST SAID THAT COSTCUTTING AND
OTHER EFFICIENCIES AT UNITS SUCH AS GE'S MATERIALS POWER SYSTEMS AND NBC
HELPED TO INCREASE GE'S OPERATING PROFIT MARGIN FOR CONTINUING OPERATIONS TO
A RECORD 142 COMPARED WITH 128 FOR LAST YEAR'S QUARTER THAT'S A VERY
HEALTHY PROFIT MARGIN PARTICULARLY ON SLUGGISH REVENUE GAINS MR LEAVITT
SAID

THE ANALYST ALSO SAID THAT GE'S EARNINGS ARE EVEN MORE IMPRESSIVE THAN THEY
APPEAR AT FIRST THE 142 A SHARE EARNED A YEAR AGO INCLUDED 10 CENTS A
SHARE FROM THE AEROSPACE DIVISION WHICH GE SOLD TO MARTIN MARIETTA CORP ON
APRIL 2 IF YOU WANT TO COMPARE APPLES TO APPLES THE 156 EARNED THIS
YEAR SHOULD BE COMPARED TO 132 LAST YEAR WITHOUT AEROSPACE RESULTS MR
LEAVITT SAID THAT WOULD RESULT IN AN 18 GAIN RATHER THAN THE 10 REPORTED
GAIN IN NET INCOME HE NOTED

GE RECORDED A GAIN OF 678 MILLION OR 79 CENTS A SHARE IN THE LATEST
QUARTER FROM THE AEROSPACE DIVISION SALE BUT FOLLOWING ITS CUSTOM THE
COMPANY REPORTED A CHARGE FOR AN EQUAL AMOUNT FOR RESTRUCTURING EXPENSES
SUCH AS CONSOLIDATING FACILITIES AT THE JET ENGINE UNIT

THE EARNINGS WERE SLIGHTLY BETTER THAN ANALYSTS HAD FORECAST AND GE SHARES
CLOSED YESTERDAY AT 98 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE
TRADING

GE BASED IN FAIRFIELD CONN HAS SEEN SLUGGISH SALES IN SOME OF ITS
BIGGEST BUSINESSES FALLING ORDERS BY COMMERCIAL AIRLINES AND THE MILITARY
FOR EXAMPLE HAVE HURT GE'S JET ENGINE BUSINESS AND ONE OF THE COMPANY'S
BIGGEST GEOGRAPHICAL MARKETS EUROPE IS MIRED IN RECESSION

ALTHOUGH THESE FACTORS RESULTED IN LOW OR NO REVENUE GROWTH IN SOME GE
UNITS SEVERAL OF THESE BUSINESSES RECORDED SHARP PROFIT GAINS FOR
CONTINUING OPERATIONS GE SAID ITS APPLIANCES UNIT PRODUCED MUCH HIGHER
PROFIT ON FLAT REVENUE REFLECTING AN IMPROVING NORTH AMERICAN MARKET AND
PRODUCTIVITY GAINS

GE'S POWER SYSTEMS UNIT WHICH MAKES ELECTRIC POWER EQUIPMENT ITS MATERIALS
UNIT WHICH MAKES PLASTICS AND ITS NBC BROADCASTING UNIT ALSO SHOWED MUCH
HIGHER PROFIT DESPITE REVENUE THAT WAS ONLY SLIGHTLY HIGHER OR FLAT GE
SAID

THE JET ENGINE DIVISION MANAGED AN OPERATING PROFIT ABOUT EQUAL TO A YEAR
AGO DESPITE A SHARP DROP IN REVENUE GE SAID

ONE BRIGHT SPOT WAS GE'S LOCOMOTIVE DIVISION WHICH IS BENEFITING FROM SHARP
INCREASES IN SHIPMENTS OF LOCOMOTIVES TO RAILROADS THE COMPANY SAID BUT
THIS WAS PARTLY OFFSET BY LOWER REVENUE IN GE'S LIGHTING BUSINESS RESULTING
IN ONLY SLIGHTLY HIGHER PROFIT FOR THE INDUSTRIAL UNIT WHICH INCLUDES BOTH
LOCOMOTIVES AND LIGHTING

GE CAPITAL SERVICES CONTINUED RACKING UP SHARP PROFIT GAINS 19 ABOVE THE
YEAREARLIER QUARTER THE COMPANY SAID

GE'S FIRSTHALF NET WAS 163 BILLION OR 191 A SHARE AFTER AN 862
MILLION CHARGE FOR POSTEMPLOYMENT BENEFITS DOWN FROM 227 BILLION OR
265 A SHARE LAST YEAR WITHOUT THE ONETIME CHARGE SIXMONTH EARNINGS
WOULD HAVE BEEN UP 10 REVENUE FROM CONTINUING OPERATIONS WAS 2762
BILLION UP 4 FROM 266 BILLION

ANALYSTS SAID GE CAPITAL'S INSURANCE BUSINESS HAS ONLY SLIGHT EXPOSURE TO
THE CURRENT FLOODING IN THE MIDWEST

MR WELCH SAID THE COMPANY'S STRATEGIES WILL CONTINUE TO GIVE GE RECORD
LEVELS OF PERFORMANCE IN 1993 THOUGH THE EXECUTIVE DIDN'T MAKE SPECIFIC
EARNINGS PROJECTIONS 9307140020 930714 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

BRANCH BANK & TRUST 100 MILLION OF NOTES DUE MAY 15 1996 PRICED AS
475S AT 99842 TO YIELD 4813 ACCORDING TO MCM CORPORATEWATCH THE
NONCALLABLE BANK NOTES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE
TREASURYS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA
BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED
BY MERRILL LYNCH & CO BRANCH BANK & TRUST IS A SUBSIDIARY OF BB&T FINANCIAL
CORP

INTERNATIONAL LEASE FINANCE CORP 100 MILLION OF NOTES DUE JULY 15
1996 PRICED AS 475S AT 9965 TO YIELD 4877 ACCORDING TO MCM
CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 55 BASIS
POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY
S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS
INC INTERNATIONAL LEASE FINANCE IS A SUBSIDIARY OF AMERICAN INTERNATIONAL
GROUP INC

SKF AB 100 MILLION OF YANKEE SENIOR NOTES DUE JULY 15 2003 PRICED AS
7625S AT 996 TO YIELD 7683 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD
OF 195 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY
MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH &
CO

FOURTH SHIFT CORP INITIAL OFFERING OF 31 MILLION COMMON SHARES PRICED
AT 650 APIECE THROUGH UNDERWRITERS LED BY PIPER JAFFRAY INC

THERMO ELECTRON CORP 45 MILLION COMMON SHARES PRICED AT 57 APIECE
THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS

CONNECTICUT 175 MILLION 1993 SERIES D GENERALOBLIGATION BONDS
APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE
INTEREST COST AT 48804 THE BONDS RATED DOUBLEA BY MOODY'S AND
DOUBLEAMINUS BY S&P WERE PRICED FOR REOFFERING TO YIELD FROM 325 IN
1995 TO 525 IN 20112012 BONDS DUE 1994 ARE NOT REOFFERED

COOK COUNTY ILL 259 MILLION GENERALOBLIGATION SERIES 1993B BOND
OFFERING TENTATIVELY PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO
YIELD FROM 225 IN 1993 TO 572 IN 2018 THE BONDS ARE MBIAINSURED AND
RATED TRIPLEA BY BOTH MOODY'S AND S&P

COOK COUNTY ILL 236 MILLION GENERALOBLIGATION BONDS SERIES 1993A
TENTATIVELY PRICED BY A PRUDENTIAL SECURITIES INC GROUP TO YIELD FROM 275
IN 1994 TO 568 IN 2023 THE BONDS ARE MBIAINSURED AND RATED TRIPLEA BY
BOTH MOODY'S AND S&P

NOVA SCOTIA 300 MILLION OF DEBENTURES DUE JULY 27 2013 PRICED AS 725S
AT 9896 TO YIELD 735 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE
DEBENTURES WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE US TREASURYS
RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD
THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO

TENNESSEE VALLEY AUTHORITY 150 MILLION OF FIRST INSTALLMENT BONDS DUE
JULY 20 1995 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY FIRST
BOSTON CORP IT WAS REOFFERED AS 3995S AT PAR ACCORDING TO MCM
CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED FLAT WITH THE TWOYEAR
TREASURY

WASHINGTON PUBLIC POWER SUPPLY SYSTEM 5053 MILLION REFUNDING REVENUE
BONDS SERIES 1993B FOR NUCLEAR PROJECT NOS 1 2 AND 3 BONNEVILLE POWER
ADMINISTRATION TENTATIVELY PRICED BY A GOLDMAN SACHS & CO GROUP THE
OFFERING CONSISTS OF 1928 MILLION NUCLEAR PROJECT NO 1 BONDS PRICED TO
YIELD FROM 285 IN 1994 TO 582 IN 2012 THE BONDS ARE RATED DOUBLEA BY
BOTH MOODY'S AND S&P WITH THE EXCEPTION OF MBIAINSURED BONDS DUE 1998
2004 AND 2015 WHICH ARE TRIPLEA RATED THERE ARE 1681 MILLION NUCLEAR
PROJECT NO 2 BONDS PRICED TO YIELD FROM 285 IN 1994 TO 582 IN 2012
RATINGS ARE DOUBLEA WITH THE EXCEPTION OF BONDS DUE 1998 AND 2004 WHICH
ARE MBIAINSURED AND ARE RATED TRIPLEA THERE ARE ALSO 255 MILLION
NUCLEAR PROJECT NO 2 PERIODIC AUCTION RESET SECURITIES DUE 2010 WHICH ARE
NOT BEING PUBLICLY REOFFERED ALSO THERE ARE 255 MILLION NUCLEAR PROJECT
NO 2 INVERSE FLOATINGRATE SECURITIES DUE 2010 WHICH AREN'T BEING PUBLICLY
REOFFERED FOR NUCLEAR PROJECT NO 3 THERE ARE 933 MILLION BONDS PRICED
TO YIELD FROM 285 IN 1994 TO 582 IN 2013 BONDS DUE 1998 2004 AND 2018
ARE MBIAINSURED AND RATED TRIPLEA WHILE THE REMAINDER OF THE BONDS ARE
DOUBLEA RATED

AUSTRIA SOVEREIGN 350 MILLION OF FLOATINGRATE EURONOTES DUE AUG 19
1997 AT ISSUE AND REOFFER PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD
INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FLAT
SUBJECT TO MAXIMUM 625 FEES 015 POINT

BANCO RIO DE LA PLATA SA ARGENTINA 150 MILLION OF 85 EUROBONDS DUE
JULY 15 1998 AT ISSUE AND REOFFER PRICE PAR VIA GOLDMAN SACHS
INTERNATIONAL LTD YIELD 85 SEMIANNUAL A SPREAD OF 349 BASIS POINTS
ABOVE COMPARABLE US TREASURY NOTE FEES 125 POINTS PAYABLE SEMIANNUALLY

NV BANK NEDERLANDSE GEMEENTEN NETHERLANDS 200 MILLION OF 775
EUROBONDS DUE AUG 13 2003 AT ISSUE PRICE 101107 VIA PARIBAS CAPITAL
MARKETS LTD REOFFERED AT 99432 TO YIELD 783 A SPREAD OF 20 BASIS POINTS
ABOVE COMPARABLE UK GILT FEES TWO POINTS

BAYERISCHE VEREINSBANK AG GERMANY 150 MILLION CANADIAN DOLLARS OF
SUBORDINATED FLOATINGRATE NOTES DUE AUG 11 2003 AT ISSUE AND REOFFER
PRICE PAR VIA KIDDER PEABODY INTERNATIONAL COUPON IS THREEMONTH CANADIAN
BANKERS' ACCEPTANCE RATE LESS 30 BASIS POINTS SUBJECT TO MINIMUM 625 AND
MAXIMUM 10 FEES 05 POINT

BELGIUM SOVEREIGN 200 MILLION SWISS FRANCS OF 44 PRIVATELY PLACED
NOTES DUE AUG 24 2000 PRICED AT 10175 VIA CREDIT SUISSE FEES 175
POINTS

COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 15 BILLION SPANISH
PESETAS OF 101 MATADOR BONDS DUE JULY 28 2003 AT ISSUE PRICE 10155 VIA
BANCO DE NEGOCIOS ARGENTARIA SA YIELD 1013 AT BREAKEVEN PRICE FOR
COMANAGERS OF 998 A MARGIN OF SIX BASIS POINTS BELOW COMPARABLE SPANISH
GOVERNMENT BOND FEES 1875 POINTS

DAIDO STEEL CO JAPAN 200 MILLION OF 1375 EUROBONDS WITH
EQUITYWARRANTS ATTACHED DUE JULY 29 1997 AT ISSUE PRICE PAR VIA NIKKO
EUROPE PLC WARRANTS TO PURCHASE SHARES IN COMPANY AT TERMS TO BE FIXED JULY
20 AT INDICATED PREMIUM OF 25 WARRANTS EXERCISABLE FROM AUG 10 1993 TO
JULY 22 1997 FEES 225 POINTS LESS SPECIAL FEE OF 02 POINT FOR LEAD
MANAGER

EUROPEAN INVESTMENT BANK SUPRANATIONAL 15 BILLION PORTUGUESE ESCUDOS OF
10125 EUROBONDS DUE AUG 3 2000 AT ISSUE PRICE 1007 VIA BANCO FINANTIA
SA REOFFERED AT 9944 TO YIELD 1024 DELAYED RATE SETTING FOR FIVE
BILLION ESCUDOS WHICH GUARANTEES YIELD MARGIN BETWEEN EIB BONDS AND
COMPARABLE PORTUGUESE GOVERNMENT BOND FOR SIX MONTHS FEES 1625 POINTS
LESS SPECIAL FEE OF 025 POINT FOR LEAD MANAGER

EUROPEAN INVESTMENT BANK SUPRANATIONAL 50 MILLION IRISH PUNTS OF 775
EUROBONDS DUE AUG 5 2003 AT ISSUE PRICE 101573 VIA SALOMON BROTHERS
INTERNATIONAL LTD REOFFERED AT 99898 TO YIELD 7765 A SPREAD OF 28 BASIS
POINTS ABOVE COMPARABLE IRISH GILT FEES TWO POINTS

KONJNKLIJKE AHOLD NV NETHERLANDS 200 MILLION DUTCH GUILDERS OF 675
SUBORDINATED EUROBONDS DUE AUG 24 2003 AT ISSUE PRICE 10015 VIA
RABOBANK REOFFERED AT 995 TO YIELD 682 A SPREAD OF 38 BASIS POINTS
ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE POINT

SHIKOKU ELECTRIC POWER CO JAPAN 250 MILLION 625 EUROBONDS DUE AUG
12 2003 AT ISSUE AND REOFFER PRICE 995 VIA UBS LTD YIELD 632 A SPREAD
OF 49 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 035 POINT

SNOW BRAND MILK PRODUCTS CO JAPAN 200 MILLION SWISS FRANCS OF
PRIVATELY PLACED NOTES DUE AUG 5 1997 WITH EQUITYPURCHASE WARRANTS
CARRYING A 1125 COUPON AT PAR VIA SWISS BANK CORP EACH 50000FRANC NOTE
CARRIES 50 WARRANTS EXERCISABLE FROM AUG 16 1993 TO JULY 23 1997 TO
PURCHASE COMPANY SHARES FINAL TERMS FIXED JULY 19 FEES 1625 POINTS

UNIAO DE BANCOS BRASILEIROS SA BRAZIL 90 MILLION 85 EUROBONDS DUE
JULY 29 1996 AT ISSUE AND REOFFER PRICE PAR VIA SWISS BANK CORP YIELD
85 SEMIANNUAL A SPREAD OF 420 BASIS POINTS ABOVE COMPARABLE US
TREASURY NOTE FEES ONE POINT PAYABLE SEMIANNUALLY

WESTDEUTSCHE LANDESBANK GIROZENTRALE GERMANY 200 BILLION ITALIAN LIRE
OF 10 EUROBONDS DUE AUG 19 2005 VIA BANCA NAZIONALE DEL LAVORO BONDS
YIELD 1002 AFTER DEDUCTING FULL FEES OF TWO POINTS 9307140019 930714
AGREEMENT IS REACHED ON FRAMEWORK OF 465 MILLION PLAN TO SAVE EVERGLADES
  BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE FEDERAL GOVERNMENT AND THE STATE OF FLORIDA AGREED WITH
LEADING SUGAR GROWERS ON THE FRAMEWORK FOR A 465 MILLION PLAN TO CLEAN UP
POLLUTION IN THE EVERGLADES AND BEGIN RESTORING THE ECOSYSTEM

AT A NEWS CONFERENCE INTERIOR SECRETARY BRUCE BABBITT CALLED THE AGREEMENT
THE LARGEST MOST AMBITIOUS ECOSYSTEM RESTORATION PROJECT EVER UNDERTAKEN
IN THIS COUNTRY BUT ENVIRONMENTAL GROUPS WHICH WERE PARTY TO THE
LITIGATION LEADING TO THE ACCORD BUT WHICH DIDN'T PARTICIPATE DIRECTLY IN
THE LATEST TALKS WERE GENERALLY CRITICAL

THE AGRICULTURE INDUSTRY'S SHARE OF THE COSTS COULD TOTAL AS MUCH AS 322
MILLION OVER 20 YEARS MOSTLY TO REDUCE THE PHOSPHOROUS AND OTHER
AGRICULTURAL RUNOFF THAT POLLUTES THE EVERGLADES A SWAMPY PARTLY
FORESTED REGION IN SOUTH FLORIDA THAT IS HOME TO MANY SPECIES OF PLANTS AND
ANIMALS

THE STATE OF FLORIDA AND THE FEDERAL GOVERNMENT WILL MAKE UP THE REST OF THE
FUNDS EARMARKED MOSTLY FOR RESTORATION THE SOUTH FLORIDA WATER MANAGEMENT
DISTRICT IS PROPOSING A PROPERTY TAX INCREASE THAT WILL AFFECT 15 SOUTHERN
COUNTIES TO PAY PART OF FLORIDA'S SHARE

UNDER THE TENTATIVE PLAN THE STATE OF FLORIDA AND THE FEDERAL GOVERNMENT AS
WELL AS US SUGAR CORP FLOSUN INC AND THE SOUTH BAY GROWERS INC AGREE
TO A STAY OF ALL LITIGATION AND ADMINISTRATIVE PROCEEDINGS FOR 90 DAYS WHILE
THEY WORK OUT A FINAL SETTLEMENT TO BE PRESENTED TO THE COURTS

OFFICIALS CAUTIONED THAT ISSUES SUCH AS CONSTRUCTION SCHEDULES TIMETABLES
AND WATERQUALITY STANDARDS MUST STILL BE NEGOTIATED SECRETARY BABBITT SAID
THE ENVIRONMENTAL GROUPS AND THE MICCOSUKEE INDIAN TRIBE THAT HAS BEEN
INVOLVED IN LITIGATION WILL PARTICIPATE IN THESE TALKS IN ADDITION
OFFICIALS INDICATED THEY HOPED OTHER GROWERS WILL SIGN ON TO THE PLAN

DAVE SIMON NATURAL RESOURCES PROGRAM MANAGER FOR THE NATIONAL PARKS AND
CONSERVATION ASSOCIATION PRAISED THE CLINTON ADMINISTRATION FOR GETTING A
MAJOR CLEANUP COMMITMENT FROM THE GROWERS BUT HE COMPLAINED THAT THE PLAN
RELIES TOO HEAVILY ON CHEMICAL TREATMENT OF RUNOFF RATHER THAN SETTING UP
BUFFER ZONES BETWEEN AGRICULTURED LANDS AND THE EVERGLADES AMONG OTHER
CRITICISMS

JAMES WEBB FLORIDA REGIONAL DIRECTOR FOR THE WILDERNESS SOCIETY WHO
PARTICIPATED IN THE NEWS CONFERENCE AT THE INTERIOR DEPARTMENT SAID THE
PLAN DOESN'T CONTAIN ADEQUATE ENFORCEMENT MECHANISMS HE SAID IT DOES SET UP
FAIR RULES OF ENGAGEMENT FOR THE PARTIES THAT HAVE BEEN INVOLVED IN THE
DISPUTE

THE AMBITIOUS PLAN ENVISIONS THE CONSTRUCTION OF SIX WETLANDS OVER MORE THAN
40000 ACRES MOSTLY ADJACENT TO THE EVERGLADES TO CLEAN STORMWATER AND
AGRICULTURAL RUNOFF BEFORE IT REACHES THE EVERGLADES IN PARTICULAR
PHOSPHORUS USED AS FERTILIZER AMONG OTHER SOURCES BY SUGAR FRUIT AND
VEGETABLE GROWERS HAS HELPED PROMOTE EXCESSIVE GROWTH OF CATTAILS AND EXOTIC
FORMS OF VEGETATION THAT HAVE SQUEEZED OUT VEGETATION UNIQUE TO THE
EVERGLADES WHICH IS SPREAD OUT OVER SOME TWO MILLION ACRES

OFFICIALS ALSO HOPE TO BEGIN REPLICATING THE NATURAL HYDROLOGY OF THE SYSTEM
BY WORKING TO RESTORE THE VOLUME TIMING AND DISTRIBUTION OF WATER THAT
FLOWS SOUTHWARD IN SHEETS ACROSS EVERGLADES NATIONAL PARK WHICH ENCOMPASSES
ABOUT 234 SQUARE MILES IN THE SOUTHERNMOST PART OF THE EVERGLADES THE
NATURAL FLOWS HAVE BEEN HURT BY FARMING AND DEVELOPMENT

THE FRAMEWORK ALSO INCLUDES FINANCIAL INCENTIVES TO ENCOURAGE SUGAR GROWERS
TO REDUCE POLLUTION BEYOND THE PLAN'S REQUIREMENTS WHILE THE GROWERS ARE
REQUIRED TO PAY A MINIMUM OF ROUGHLY 116 MILLION ANNUALLY THE INDUSTRY'S
OVERALL PAYMENT COULD BE CUT TO 232 MILLION IF THE GROWERS MAKE EXTRA
REDUCTIONS ON POLLUTION ON THEIR OWN LANDS

NELSON FAIRBANKS PRESIDENT OF US SUGAR CALLED THE AGREEMENT A HIGH
PRICE BUT ONE I BELIEVE THE FARMERS CAN LIVE WITH HE AND OTHER INDUSTRY
OFFICIALS PRAISED AMONG OTHER POINTS THE FINANCIAL INCENTIVES AND THE
FLEXIBILITY THE GROWERS GET FOR REDUCING POLLUTION

ROBERT HAHN AN ECONOMIST WITH THE AMERICAN ENTERPRISE INSTITUTE AND A
CONSULTANT TO THE SUGAR GROWERS SAID THE ACCORD ALLOWS THE INDUSTRY TO SET
UP A CREDIT SYSTEM SIMILAR TO THE POLLUTIONTRADING SYSTEM UNDER THE CLEAN
AIR ACT CONCEIVABLY SUGAR PRODUCERS COULD DEVISE A PROGRAM WHEREBY THOSE
WHO MAKE EXTRADEEP CUTS IN POLLUTION COULD EARN CREDITS THEY COULD SELL OR
SWAP TO OTHER GROWERS

NEGOTIATIONS LEADING UP TO YESTERDAY'S ANNOUNCEMENT BEGAN IN RESPONSE TO THE
1991 SETTLEMENT OF A FEDERAL LAWSUIT CHARGING THAT FLORIDA WAS FAILING TO
ENFORCE WATERQUALITY STANDARDS FOR AGRICULTURAL RUNOFF AGRICULTURAL
INTERESTS THEN CHALLENGED THE FEDERALSTATE SETTLEMENT OF THE SUIT THE NEW
PLAN IF ACCEPTED BY THE COURTS WOULD ESSENTIALLY REPLACE THE 1991
SETTLEMENT THOUGH OFFICIALS SAID IT GOES FAR BEYOND THE POLLUTION REDUCTION
CONTEMPLATED IN THAT ACCORD 9307140018 930714 COMMODITIES COPPER
FUTURES PLUNGE EARLY IN SESSION ON RISE IN SUPPLY THEN RECOVER TO SETTLE
SLIGHTLY LOWER  BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL
STREET JOURNAL

CHICAGO AFTER A DIZZYING PLUNGE OF MORE THAN SEVEN CENTS A POUND IN TWO
DAYS COPPER FUTURES PRICES REGAINED SOME LOST GROUND BUT STILL SETTLED
LOWER ON THE DAY

AT NEW YORK'S COMMODITY EXCHANGE THE ACTIVELY TRADED SEPTEMBER COPPER
CONTRACT TRADED AS LOW AS 8230 CENTS A POUND YESTERDAY DOWN FROM A HIGH
OF 90 CENTS A POUND FRIDAY BEFORE RALLYING AT THE END OF THE SESSION THE
CONTRACT SETTLED AT 8515 CENTS A POUND DOWN 105 CENTS

A ROUT IN THE COPPER MARKET BEGAN EARLY YESTERDAY AS WORD REACHED THE NEW
YORK COPPERTRADING PITS THAT STOCKS OF COPPER AT THE LONDON METAL EXCHANGE
HAD RISEN BY 3500 TONS TRADERS HAVE BEEN EXPECTING SUBSTANTIAL DECLINES IN
THE LME STOCKS AS CHINA AND OTHER ASIAN COUNTRIES BOUGHT COPPER

INSTEAD THERE WAS AGGRESSIVE JAPANESE SELLING AS THE NEW YORK MARKET
OPENED AND COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY
SOON FOLLOWED SUIT WEAKNESS UNDERLIES THE MARKET SOME ANALYSTS THEORIZED
BECAUSE OF NEGATIVE FACTORS AFFECTING THE DEMAND FOR COPPER

THERE HAVE BEEN FOUR CONSECUTIVE QUARTERS OF WEAKERTHANEXPECTED COPPER
CONSUMPTION STARTING IN THE THIRD QUARTER OF 1992 SAID FRED DEMLER METALS
ECONOMIST FOR PAINEWEBBER INC AND AT THE MOMENT THE US AND OTHER
ECONOMIES ARE STUMBLING IN EUROPE GERMANY IS GETTING WEAKER THAT HURTS
CONSUMPTION BECAUSE COPPER IS USED IN HOUSING AUTOS AND CONSUMER DURABLE
GOODS AS THE WORLDWIDE ECONOMY WEAKENS DEMAND FOR COPPER SOFTENS

AS YESTERDAY'S SESSION CONTINUED HOWEVER PRICES MAY HAVE DROPPED TOO FAR
DRAWING BUYERS INTO THE MARKET FROM A FUNDAMENTAL VIEWPOINT THERE'S NO
RATIONALE FOR AN EIGHTPOINT DECLINE IN TWO SESSIONS SAID WILLIAM O'NEILL
CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH

CHINA IN PARTICULAR WAS AN AGGRESSIVE BUYER OF COPPER LATE YESTERDAY AS
PRICES DROPPED TO NEARLY 82 CENTS A POUND

ANOTHER FACTOR THAT HELPED TO PUSH PRICES UP AT THE END OF YESTERDAY'S
SESSION WAS THE LACK OF PROGRESS IN LABOR NEGOTIATIONS AT ONE OF THE THREE
BIG US COPPER MINES WORKERS CONTINUE TO MINE AT KENNECOTT COPPER CO
WHICH OPERATES THE MINE DESPITE THE SLOW PROGRESS OF THEIR UNION'S
NEGOTIATIONS MR O'NEILL SAID

ANALYSTS SAID COPPER ISN'T LIKELY TO DROP BELOW 80 CENTS A POUND BECAUSE AT
THAT LEVEL BUYERS QUICKLY MOVE IN TO SUPPORT THE MARKET

THE KEY TO THE LONGTERM PRICE EQUATION IS DEMAND FROM THE CHINESE MR
O'NEILL SAID AS BUYERS I THINK THEY'RE PRICESENSITIVE AND I THINK 80
CENTS IS A PRICE LEVEL THAT GENERALLY ATTRACTS THEM

IN OTHER COMMODITY MARKETS YESTERDAY

GRAINS AND SOYBEANS WHEAT FUTURES PRICES DECLINED ON A US AGRICULTURE
DEPARTMENT REPORT RELEASED LATE MONDAY THAT PROJECTED A RECORD YIELD OF
WHEAT THE AGRICULTURE DEPARTMENT PREDICTED A YIELD OF 405 BUSHELS AN ACRE
WHICH WOULD ECLIPSE THE RECORD 1991 YIELD OF 395 BUSHELS AN ACRE THE
PROBABILITY OF AN AMPLE SUPPLY OF WHEAT AND A LACK OF BUYING BY
SUBSTANTIAL IMPORTERS SUCH AS RUSSIA AND CHINA COMBINED TO SWAMP FUTURES
PRICES AT THE CHICAGO BOARD OF TRADE WHEAT FOR DECEMBER DELIVERY WAS DOWN
775 CENTS TO 30125 A BUSHEL

ENERGY AUGUST CRUDE OIL FUTURES GAINED THREE CENTS A BARREL IN NEW YORK
MERCANTILE EXCHANGE TRADING AS MARKET PLAYERS WAITED FOR NEWS ON IRAQ'S
TALKS WITH THE UNITED NATIONS ABOUT A ONETIME SALE OF OIL IRAQ HAS BEEN
BANNED FROM WORLD OIL MARKETS SINCE IT INVADED KUWAIT NEARLY THREE YEARS
AGO BUT THE UN HAS LONG SUGGESTED THAT UNDER CERTAIN CONDITIONS IRAQ
MIGHT BE ALLOWED TO SELL 16 BILLION IN OIL FOR FOOD AND OTHER HUMANITARIAN
USES THE UNIRAQI TALKS ENTERED THEIR FIFTH DAY YESTERDAY AUGUST CRUDE
SETTLED AT 1813 A BARREL PRODUCTS ALSO SHOWED LITTLE MOVEMENT WITH
AUGUST HEATING OIL LOSING 019 CENT A GALLON TO FINISH AT 5055 CENTS AND
AUGUST GASOLINE SETTLING AT 5333 CENTS A GALLON UP 018 CENT 9307140017
930714 BUSINESS BRIEF TIME WARNER INC WARNER BROS CONSOLIDATING 
ITS NETWORK TV OPERATIONS

TIME WARNER INC'S WARNER BROS STUDIO IS CONSOLIDATING ITS TWO NETWORK
TELEVISION OPERATIONS WARNER BROS TELEVISION AND LORIMAR TELEVISION INTO
A SINGLE UNIT SAYING IT CAN NO LONGER JUSTIFY THE DUPLICATE OVERHEAD OF TWO
STANDALONE UNITS

THE STREAMLINING WILL RESULT IN AN UNDETERMINED NUMBER OF LAYOFFS THE
COMPANY SAID THE MOVE A RESULT OF INCREASING INHOUSE PRODUCTION AT THE
BROADCAST NETWORKS LOWER LICENSE FEES FOR NETWORK SERIES AND RISING
PRODUCTION COSTS IS EXPECTED TO BE FINISHED IN ABOUT A WEEK

THE NEW UNIT WARNER BROS TELEVISION PRODUCTION WILL BE HEADED BY LORIMAR
PRESIDENT LESLIE MOONVES WARNER BROS TELEVISION PRESIDENT HARVEY SHEPHARD
AND SENIOR VICE PRESIDENT FRAN MCCONNELL WILL SET UP AN INDEPENDENT
PRODUCTION COMPANY ON THE WARNER LOT

THE ODD SETUP OF TWO STUDIOS WHICH BETWEEN THEM HAVE SOLD 17 PRIMETIME
SERIES TO THE FOUR BROADCAST NETWORKS FOR FALL RESULTED FROM THE
ACQUISITION OF LORIMARTELEPICTURES INC BY WARNER COMMUNICATIONS INC IN
1989 WITH EACH COMPANY'S STUDIOS MAINTAINING SEPARATE OPERATIONS WARNER
SUBSEQUENTLY MERGED WITH TIME INC IN 1989 TO FORM TIME WARNER 9307140016
930714 INTERNATIONAL DEBT BURDEN IS VERY PERILOUS RUSSIAN WARNS 
 A WALL STREET JOURNAL NEWS ROUNDUP

MOSCOW RUSSIA'S CRUSHING DEBT BURDEN BOTH GOVERNMENTTOGOVERNMENT AND
COMMERCIAL HAS REACHED INTOLERABLE PROPORTIONS AND THREATENS TO DERAIL
THE NATION'S MOVE TOWARD A CAPITALIST ECONOMY A TOP GOVERNMENT OFFICIAL
SAID

DEPUTY PRIME MINISTER ALEXANDER SHOKHIN WARNED THAT RUSSIA'S ECONOMY WILL
COLLAPSE IF MOSCOW IS FORCED TO COME UP WITH ALL OF THE 165 BILLION OF THE
FORMER SOVIET UNION'S GOVERNMENTTOGOVERNMENT DEBT IT IS SCHEDULED TO REPAY
IN 1994 HE TOLD REPORTERS THAT THE REPAYMENTS DUE NEXT YEAR MUST BE
RADICALLY RESTRUCTURED AND PARTLY CANCELED TO GIVE RUSSIA THE REAL HELP IT
NEEDS TO MOVE FROM COMMUNISM TO A FREE MARKET

BOTH WE AND THE WESTERN COMMUNITY SHOULD BE CONCERNED HE SAID IF WE
REALLY START COVERING THESE DEBTS THEN DESPITE ALL THE PROMISED WESTERN
HELP WE WILL COLLAPSE

SEPARATELY MR SHOKHIN SAID THE RUSSIAN GOVERNMENT WILL FILE A COUNTERSUIT
AGAINST A SWISS OIL COMPANY IN AN EFFORT TO DISSUADE FOREIGN COMPANIES FROM
TAKING AGGRESSIVE STEPS TO COLLECT FORMER SOVIET COMMERCIAL DEBTS HE SAID
THE GOVERNMENT ON BEHALF OF THE STATEOWNED OIL COMPANY NAFTAMOSCOW WAS
SUING CIE NOGA D'IMPORTATION & D'EXPORTATION IN RUSSIA'S ARBITRATION COURT
THE COUNTRY'S MAIN BUSINESS COURT

THE SWISS COMPANY HAD SUED IN LUXEMBOURG LAST MONTH TO RECOVER 250 MILLION
IN DEBTS AND DAMAGES IT SAID IT INCURRED IN DEALINGS WITH RUSSIA AND THE
FORMER SOVIET UNION THE LUXEMBOURG COURT FROZE 279 MILLION DEPOSITED IN
SWISS AND LUXEMBOURG BANK ACCOUNTS BY RUSSIAN GOVERNMENT ENTITIES MR
SHOKHIN SAID THE FORMER SOVIET COMMERCIAL DEBT HAS REACHED 7 BILLION AND
RUSSIA FEARS A SPATE OF LAWSUITS LIKE NOGA'S

WE ARE VERY CONCERNED BY THE PROBLEM OF COMMERCIAL DEBT OF THE FORMER
SOVIET UNION TO SUPPLY COMPANIES MR SHOKHIN SAID THE EXAMPLE OF THE
NOGA COMPANY SHOWS THAT THIS DEBT MIGHT LEAD TO CATASTROPHIC CONSEQUENCES
THEY WOULD KEEP DRAGGING US TO COURTS AND WOULD FREEZE ALL OUR PROPERTY
ABROAD

AT LAST WEEK'S SUMMIT IN TOKYO THE GROUP OF SEVEN INDUSTRIALIZED NATIONS
REAFFIRMED THE 284 BILLION RUSSIAN AID PACKAGE THAT THEY APPROVED IN
APRIL AND ALLOCATED 3 BILLION MORE TO HELP PRIVATIZED STATE BUSINESSES
SUCCEED BUT MR SHOKHIN SAID RUSSIA NEEDS FINANCIAL ASSISTANCE FOR
ADDRESSING REAL PROBLEMS WITHOUT A SOLUTION TO WHICH WE WON'T BE ABLE TO
SURVIVE FIRST OF ALL THE PROBLEM OF FOREIGN DEBT

HE ADDED UNFORTUNATELY NOBODY REMEMBERED IT IN TOKYO

RUSSIA HAS ASSUMED THE PORTIONS OF SOVIET FOREIGN DEBTS OF MOST OTHER FORMER
SOVIET REPUBLICS IN EXCHANGE FOR THEIR SHARES OF SOVIET ASSETS SUCH AS GOLD
RESERVES AND PROPERTY ABROAD THE TOTAL SOVIET DEBT IS ESTIMATED AT 80
BILLION BY THE SOCALLED PARIS CLUB OF CREDITOR NATIONS RUSSIA SAYS IT OWES
70 BILLION INCLUDING THE DEBTS IT HAS ASSUMED FROM OTHER NEWLY INDEPENDENT
STATES 9307140015 930714 FOUR BIG REGIONAL BANKING FIRMS POST STRONG
GAINS IN SECONDQUARTER PROFIT  BY STEVEN LIPIN STAFF REPORTER OF
THE WALL STREET JOURNAL

FOUR BIG REGIONAL BANKS POSTED STRONG SECONDQUARTER EARNINGS DRIVEN BY FAT
INTEREST MARGINS AND LOWER CHARGES FOR BAD DEBTS

BANK OF NEW YORK CO REPORTED EARNINGS UP 49 AND SAID IT WOULD BOOST ITS
DIVIDEND BY 18 ATLANTA'S SUNTRUST BANKS INC SAID NET ROSE 12 WHILE
FIRST FIDELITY BANCORPORATION SAID EARNINGS CLIMBED 283 SOCIETY CORP
CLEVELAND SAID NET INCOME ROSE 105

THE RESULTS WERE GENERALLY IN LINE WITH OR AT THE HIGH END OF WALL STREET
ESTIMATES WHICH HAVE BEEN RISING IN RECENT MONTHS DESPITE FEARS OF
SHRINKING NET INTEREST MARGINS BETWEEN BORROWING AND LENDING RATES THE
BANKS ALL REPORTED STRONG MARGINS HOWEVER REVENUE REMAINED CONSTRAINED AT
MOST OF THE BANKS BECAUSE OF WEAK LOAN GROWTH

STILL SHARES OF FIRST FIDELITY EASED TO 4825 DOWN 1 WHILE SOCIETY
CORP SHARES WERE CLOSED AT 35125 UP 125 CENTS BANK OF NEW YORK SHARES
CHANGED HANDS AT 59375 DOWN 50 CENTS AND SUNTRUST SHARES CLOSED AT
4650 DOWN 125 ANALYSTS ATTRIBUTED THE DIP TO PROFITTAKING AFTER A
STRONG RUNUP IN RECENT WEEKS MOST BANK STOCKS ENDED THE DAY WEAKER

IT'S A LITTLE OF THE BUY THE EXPECTATIONS AND SELL THE REALITY' SAID
JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO

AFTER DEDUCTING A 24 MILLION ONETIME GAIN ON AN ASSET SALES BANK OF NEW
YORK'S RESULTS WERE IN LINE WITH EXPECTATIONS THE 41 BILLIONASSET BANK
SAW NONPERFORMING ASSETS DECLINE 17 FROM THE FIRST QUARTER PROBLEM ASSETS
HAVE FALLEN FOR EIGHT CONSECUTIVE QUARTERS ITS PROVISION FOR LOAN LOSSES
FELL TO 75 MILLION FROM 90 MILLION IN THE FIRST QUARTER AND 106 MILLION
IN THE YEAREARLIER QUARTER

EARNINGS WERE HELPED BY A STRONGER NET INTEREST MARGIN A 19 GAIN IN
NONINTEREST INCOME AND THE ACQUISITION OF BARCLAYS BANK'S CONSUMER
OPERATIONS THE NET INTEREST MARGIN WIDENED TO 307 PERCENTAGE POINTS FROM
298 IN THE FIRST QUARTER

THE COMPANY'S DIRECTORS DECLARED A QUARTERLY DIVIDEND OF 45 CENTS A SHARE
UP FROM 38 CENTS A SHARE ITS FIRST DIVIDEND INCREASE IN ALMOST THREE YEARS
AND A LARGER BOOST THAN EXPECTED THE MAGNITUDE OF THE DIVIDEND INCREASE
REFLECTS HOW STRONG EARNINGS HAVE BEEN SAID MR KRAUSHAAR

SUNTRUST BANKS ATTRIBUTED ITS STRONG RESULTS TO BETTER EXPENSE CONTROLS
IMPROVED CREDIT QUALITY AND INCREASES IN FEE INCOME

WHAT WE'RE SEEING HERE ARE EARNINGS BEING DRIVEN NOT BY LOWER
CREDITRELATED COSTS BUT BY IMPROVED PRODUCTIVITY SAID SANDRA FLANNIGAN A
BANKING ANALYST AT MERRILL LYNCH

ALSO THE FACT THAT SUNTRUST CONTINUES TO BUILD ITS RESERVES GIVES THEM
INCREDIBLE FLEXIBILITY GOING FORWARD MS FLANNIGAN SAID IF ANYTHING
THEY ARE STILL UNDERREPORTING RELATIVE TO THEIR REAL EARNINGS POWER

SUNTRUST'S RESERVE NOW STANDS AT 501 MILLION UP FROM 400 MILLION A YEAR
AGO FOR THE SECOND QUARTER THE LOANLOSS PROVISION WAS 463 MILLION DOWN
FROM 559 MILLION LAST YEAR NET CHARGEOFFS FOR THE QUARTER WERE 276
MILLION COMPARED WITH 371 MILLION AS OF JUNE 30 SUNTRUST HAD TOTAL
ASSETS OF 376 BILLION

EARNINGS AT THE 31 BILLIONASSET BANK BASED IN LAWRENCEVILLE NJ WERE A
FEW PENNIES A SHARE GREATER THAN WALL STREET EXPECTED EARNINGS WERE HELPED
BY A FATTENING NET INTEREST MARGIN BETWEEN BORROWING AND LENDING RATES TO
492 PERCENTAGE POINTS FROM 487 IN THE FIRST QUARTER

THE EARNINGS INCLUDE TWO MONTHS OF FIGURES FOR NORTHEAST BANCORP INC WHICH
WAS ACQUIRED DURING THE QUARTER CHAIRMAN ANTHONY TERRACCIANO SAID NORTHEAST
WAS LOOKING SOMEWHAT BETTER THAN OUR ORIGINAL ESTIMATES

ITS PROVISION FOR FUTURE LOAN LOSSES FELL TO 41 MILLION IN THE QUARTER
FROM 45 MILLION IN THE FIRST QUARTER AND 59 MILLION IN THE YEAREARLIER
PERIOD NONPERFORMING ASSETS ROSE TO 482 MILLION FROM 461 MILLION IN THE
FIRST QUARTER DUE TO THE NORTHEAST ACQUISITION

SOCIETY CORP CITING IMPROVING ASSET QUALITY POSTED SECONDQUARTER NET
INCOME OF 97 MILLION OR 82 CENTS A SHARE

CLEVELANDBASED SOCIETY WHICH HAS 256 BILLION IN ASSETS SAID
NONPERFORMING ASSETS DECLINED 26 FROM THE END OF THE FIRST QUARTER AND
REPRESENTED 130 OF TOTAL ASSETS HALF THE LEVEL OF THE YEARAGO RATIO

FOR THE FIRST SIX MONTHS OF 1993 NET INCOME WAS 192 MILLION OR 161 A
SHARE UP 46 FROM A YEAR AGO IN THE 1992 FIRST HALF SOCIETY HAD NET
INCOME OF 132 MILLION OR 110 A SHARE

GABRIELLA STERN AND ELEENA DE LISSER CONTRIBUTED TO THIS ARTICLE
9307140014 930714 TEXANS CAN RETURN TO DEBATING CHARCOAL AND GAS GRILLS'
MERITS  BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL

TEXAS'S BIGHAIR SCARE IS OVER

THE TODO WAS SPARKED LAST MONTH WITH RUMORS THAT GOV ANN RICHARDS WAS
CONSIDERING CLIPPING THE LOFTY WHITE BOUFFANT THAT HAS BECOME ONE OF THE
NATION'S BESTKNOWN POLITICAL 'DOS

THAT NEWS WASN'T WELLRECEIVED IN TEXAS EASILY THE BIG HAIR CAPITAL OF
AMERICA GAIL HUITT MS RICHARDS'S HAIRDRESSER FOR THE PAST 20 YEARS
REPORTS BEING SWAMPED WITH COMPLAINTS FROM BIGHAIR ADVOCATES IT'S AMAZING
HOW MANY PEOPLE CARE WHAT HER HAIR LOOKS LIKE MS HUITT SAYS

RESULT THE GOVERNOR'S UPSWEPT STYLE STAYS HAIR SPRAY AND ALL THE DRAMA
IS OVER WE'VE DECIDED TO KEEP IT AS IT IS SAYS MS HUITT WHO DOES MS
RICHARDS' HAIR OR AS SHE LIKES TO SAY I RAT THE TAR OUT OF IT AND SPRAY
THE HELL OUT OF IT TWICE A WEEK FOR 35 A POP

MS HUITT SAYS THE GOVERNOR CONSIDERED CHANGING HER LOOK TO A MORE
USERFRIENDLY STYLE BETTER SUITED TO HER BUSY TRAVEL SCHEDULE PLUS SHE
SAYS THE TEXAS DEMOCRAT WAS SIMPLY HOPING FOR A CHANGE WE ALL HAVE HAIR
MS HUITT SAYS WE GET TIRED OF WEARING IT THE SAME OLD WAY ALL THE TIME

RUMORS THAT MS RICHARDS MIGHT DOWNSIZE HER BOUFFANT WERE BIG NEWS HERE THE
CONTROVERSY BROKE AS PRESIDENT CLINTON WAS EMBROILED IN A HAIR BROUHAHA OF
HIS OWN ADDING ZIP TO A STORY ABOUT A TRADITION AS INGRAINED IN TEXAS AS
BARBECUE AND BIG OIL THE AUSTIN AMERICANSTATESMAN IN THE STATE'S CAPITAL
GAVE THE RICHARDS HAIR CONTROVERSY FRONTPAGE PLAY COMPLETE WITH AN
ANALYSIS FROM POLITICAL CONSULTANTS ABOUT HOW A NEW 'DO MIGHT AFFECT THE
GOVERNOR'S STANDING IN THE POLLS

THE GOVERNOR'S PRESS OFFICE PLAYS DOWN THE ISSUE SAYING MS RICHARDS NEVER
SERIOUSLY CONSIDERED CUTTING HER HAIR ANYWAY IT NEVER CROSSED OUR RADAR
SCREEN AS SOMETHING WE SAW AS IMPORTANT A SPOKESMAN SAYS WE WERE KIND OF
FLABBERGASTED ABOUT IT

MS HUITT THOUGH MAY ALREADY HAVE STOKED THE CONTROVERSY FURTHER THE
HAIRDRESSER WHOSE OWN 'DO OVERSHADOWS EVEN MS RICHARDS'S COIF ADMITS TO
TONING DOWN THE GOVERNOR'S LOOK ALMOST IMPERCEPTIBLY THROUGH A SERIES OF
SECRET WEDGES AND CROPS IN RECENT WEEKS

WE MAY CHANGE CORNERS HERE AND THERE BUT THE AVERAGE PERSON WOULDN'T KNOW
IT MS HUITT SAYS BASICALLY IT WILL STILL BE FULL HAIR 9307140013
930714 BUSINESS BRIEF STATE STREET BOSTON CORP SECONDPERIOD NET ROSE
12 SLOWED BY RISE IN EXPENSES

STATE STREET BOSTON CORP POSTED AN 18 INCREASE IN SECONDQUARTER REVENUE
BUT A RISE OF ONLY 12 IN NET INCOME DUE TO INCREASED EXPENSES

THE BOSTONBASED BANK WHICH GETS MOST OF ITS INCOME FROM FEES FOR CUSTODIAL
SERVICES FOR MUTUAL FUNDS AND PENSIONS HAS BEEN FACING GROWING COMPETITION
AND PRICECUTTING IN ITS CUSTODIAL BUSINESS

THE BANK POSTED SECONDQUARTER NET INCOME OF 432 MILLION OR 57 CENTS A
SHARE UP FROM 387 MILLION OR 51 CENTS A SHARE A YEAR EARLIER ALTHOUGH
REVENUE ROSE TO 278 MILLION IN THE QUARTER ITS QUARTERLY OPERATING
EXPENSES GREW TO 212 MILLION UP 21 FROM LAST YEAR'S SECOND QUARTER

THOSE ADDED EXPENDITURES ARE DIVIDED BETWEEN EXPENSES FOR AN ENLARGED STAFF
DEVELOPMENT OF NEW SOFTWARE TO EXPAND STATE STREET'S ARRAY OF SERVICES AND
INVESTMENT IN ADDED COMPUTER HARDWARE TO MEET CUSTOMER GROWTH SAID STATE
STREET VICE CHAIRMAN DAVID SPINA

STATE STREET CURRENTLY HAS 9800 EMPLOYEES ABOUT 1000 MORE THAN A YEAR
EARLIER WITH ABOUT HALF OF THE INCREASE REFLECTING THE PURCHASE LATE LAST
YEAR OF WENDOVER FINANCIAL SERVICES 9307140012 930714 BUSINESS BRIEF 
JOHNSON CONTROLS INC MINORITY STAKE IS PURCHASED IN MEXICAN MAKER OF
SEATS

JOHNSON CONTROLS INC SAID IT ACQUIRED A MINORITY STAKE IN CERTAIN ASSETS OF
GRUPO SUMMA A MAKER OF SEATS AND SEATING COMPONENTS FOR THE MEXICAN
AUTOMOTIVE MARKET TERMS WEREN'T DISCLOSED

THE MILWAUKEE MAKER OF BUILDING CONTROLS BATTERIES AUTO SEATS AND PLASTIC
CONTAINERS SAID THE ASSETS WHICH GENERATE ANNUAL SALES OF 100 MILLION
INCLUDE FOUR SEATING FACILITIES NEAR MEXICO CITY THE SEATS ARE PRODUCED FOR
THE LOCAL VEHICLE ASSEMBLY PLANTS OF FORD MOTOR CO AND NISSAN MOTOR CORP

A NEW COMPANY SYSTEMS AUTOMOTIVE SUMMA HAS BEEN FORMED TO INCLUDE THESE
OPERATIONS IN ADDITION TO ANOTHER JOHNSON CONTROLS FACILITY IN TOLUCA WHICH
SUPPLIES COMPLETE SEATS TO CHRYSLER IN MEXICO

JOHNSON CONTROLS ALSO PARTICIPATES IN A JOINT VENTURE IN MEXICO TO SUPPLY
SEATS TO A VOLKSWAGEN VEHICLE ASSEMBLY PLANT 9307140011 930714 WHO'S
NEWS PROVIDENTIAL CORP

PROVIDENTIAL CORP SAN FRANCISCO PETER M COLLERY PREVIOUSLY A VICE
PRESIDENT AT DILLON READ & CO AND PAUL J ISAAC CHIEF ECONOMIST OF MABON
SECURITIES INC WERE ELECTED TO THE BOARD OF THIS MORTGAGE CONCERN THE
MOVES INCREASE THE BOARD TO SEVEN MEMBERS 9307140010 930714 BUSINESS
BRIEF TOKOS MEDICAL CORP QUARTER'S OPERATING DEFICIT WAS
SIGNIFICANT' FIRM SAYS

TOKOS MEDICAL CORP SANTA ANA CALIF SAID IT EXPECTS TO REPORT A
SIGNIFICANT OPERATING LOSS FOR THE SECOND QUARTER REFLECTING A 23
DECLINE IN REVENUE COMPARED WITH THE YEAREARLIER PERIOD

THE PROVIDER OF OBSTETRICAL NURSING AND PHARMACY SERVICES SAID THE QUARTER'S
FIGURES WILL ALSO INCLUDE A 6 MILLION PRETAX CHARGE EQUAL TO 26 CENTS A
SHARE TO REFLECT COSTS ASSOCIATED WITH BRINGING EXPENSES IN LINE WITH
CURRENT REVENUE LEVELS

TOKOS SAID THE SECONDQUARTER OPERATING LOSS WAS BETWEEN 26 MILLION AND
31 MILLION OR 11 CENTS A SHARE AND 14 CENTS A SHARE REVENUE TOTALED
ABOUT 31 MILLION THE COMPANY DIDN'T PROVIDE ANY ESTIMATE OF THE EXPECTED
NET LOSS

IN THE YEAREARLIER QUARTER THE COMPANY HAD RESTATED NET INCOME OF 21
MILLION OR 12 CENTS A SHARE ON REVENUE OF 406 MILLION

TOKOS SAID IT EXPECTS IT WILL BE ABLE TO ACHIEVE PROFITABILITY IN THE THIRD
QUARTER

TOKOS SHARES FELL 875 CENTS OR 10 TO 7875 IN NATIONAL OVERTHECOUNTER
TRADING 9307140009 930714 FINANCING BUSINESS ATMEL CORP

ATMEL CORP SAID IT WOULD REGISTER A PROPOSED PUBLIC OFFERING OF TWO MILLION
COMMON SHARES THE SAN JOSE CALIF CHIP MAKER SAID IT PLANNED TO USE MUCH
OF THE ANTICIPATED 50 MILLION IN PROCEEDS TO EXPAND PRODUCTION CAPACITY AND
FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9307140008 930714
GENCORP OLIN HOLD DISCUSSIONS

FAIRLAWN OHIO GENCORP INC AND OLIN CORP SAID THEY ARE HOLDING
DISCUSSIONS ABOUT THE POSSIBLE ACQUISITION OF CERTAIN ASSETS OF GENCORP'S
AEROJET ORDNANCE DIVISION BY OLIN

THE ASSETS WHICH A GENCORP SPOKESWOMAN SAID HAVEN'T BEEN DEFINED HAD SALES
OF 130 MILLION IN FISCAL 1992 GENCORP'S AEROJET ORDNANCE DIVISION MAKES
MUNITIONS SYSTEMS AND AMMUNITION FOR THE AEROSPACE INDUSTRY

GENCORP AND STAMFORD CONNBASED OLIN SAID THEY HAVEN'T REACHED AN
AGREEMENT BUT THAT DISCUSSIONS ARE CONTINUING 9307140007 930714 BUSINESS
BRIEF PETROCANADA STAKE IN TERRA NOVA OIL FIELD RAISED THROUGH
ASSET SWAP

PETROCANADA SAID IT RAISED ITS STAKE IN THE TERRA NOVA OFFSHORE OIL FIELD
TO 49 FROM ABOUT 44 THROUGH AN ASSET SWAP WITH SHELL CANADA LTD

THE TWO CALGARY ALBERTA PETROLEUM COMPANIES SAID SHELL GAVE PETROCANADA
ITS 53 INTEREST IN THE FIELD OFF NEWFOUNDLAND IN EXCHANGE FOR PARTS OF
PETROCANADA'S INTERESTS IN SIX NATURALGAS FIELDS ON THE SCOTIAN SHELF OFF
NOVA SCOTIA

PETROCANADA SAID THAT ITS ADDITIONAL STAKE IN THE 400MILLIONBARREL FIELD
ADDS MORE THAN 20 MILLION BARRELS TO ITS OFFSHORE RESERVES

SHELL SAID THE TRANSACTION RAISES ITS INTERESTS IN THE SIX OFFSHORE GAS
FIELDS WHICH CONTAIN AN ESTIMATED 37 TRILLION CUBIC FEET OF MARKETABLE GAS
RESERVES TO ABOUT 25 FROM LESS THAN 15 A SPOKESWOMAN FOR THE COMPANY
SAID SHELL PREVIOUSLY HAD INTERESTS IN ONLY THREE OF THE FIELDS SHELL
CANADA IS 78 OWNED BY ROYAL DUTCH/SHELL GROUP

THE COMPANIES DECLINED TO PLACE VALUES ON THE ASSETS SWAPPED 9307140006
930714 WORLD MARKETS TOKYO EQUITIES GAIN ON RATE HOPES PRICES RISE IN
LONDON PROFITTAKERS HALT FRANKFURT RALLY  A WALL STREET JOURNAL
NEWS ROUNDUP

TOKYO EQUITIES FINISHED BROADLY HIGHER TUESDAY AMID A MARKET MOOD
BRIGHTENED BY CONTINUED SPECULATION THAT JAPAN WILL CUT INTEREST RATES SOON

LONDON STOCKS EDGED UP AS INVESTORS PLAYED DOWN BULLISH NEWS IN FRANKFURT
PROFITTAKING HALTED THE MARKET'S RECENT RALLY

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 10666 UP 102 REFLECTING INCREASES IN MARKETS IN EUROPE AND
THE ASIA/PACIFIC REGION AND A DROP IN AMERICAN MARKETS

COMMUNICATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY
GROUPS CLOSING AT 14259 UP 355 OR 255 WITH NIPPON TELEGRAPH &
TELEPHONE OF JAPAN POSTING A 421 GAIN IN ITS LOCAL CURRENCY NONDURABLE
HOUSEHOLDPRODUCTS STOCKS TRAILED AT 10563 DOWN 155 OR 145 WITH
PROCTER & GAMBLE OF THE US SLIDING 259 IN LOCAL CURRENCY

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 10261 POINTS MONDAY
PICKED UP 20042 OR 1 TO 2018042 HOLDING ABOVE 20000 FOR THE FIRST TIME
SINCE JUNE 16 ON WEDNESDAY THE NIKKEI FELL 5771 POINTS TO CLOSE THE
MORNING SESSION AT 2012271 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT
320 MILLION SHARES COMPARED WITH 2297 MILLION SHARES A DAY EARLIER AS
MANY INVESTORS CONTINUED TO TAKE A BREAK UNTIL THE SUNDAY ELECTIONS IN
JAPAN ADVANCING ISSUES TROUNCED RETREATING ISSUES 825190 THE TOKYO STOCK
PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 506 POINTS
MONDAY RALLIED 2163 OR 13 TO 163531

SHARE PRICES OPENED WEAKLY BUT ROSE SHARPLY IN TOKYO'S MORNING SESSION AND
FIRMED FURTHER IN AFTERNOON TRADING PART OF THE MORNING STRENGTH STEMMED
FROM SHORTCOVERING OR BUYING STOCK TO REPLACE OVERSOLD POSITIONS TAKEN IN
A BET ON A MARKET DECLINE THE MARKET'S BUOYANCY OWED TO BUYING OF BOTH
STRONGYEN AND WEAKYEN PLAYS ON FINANCIAL AND ELECTRICAL STOCKS WHICH WERE
THE TOP GAINERS INTEREST IN FINANCIAL ISSUES TENDS TO HEIGHTEN AS THE YEN
GAINS IN FOREIGNEXCHANGE DEALINGS IN ANTICIPATION OF A CREDIT EASING
WHILE BLUECHIP ELECTRICALS ARE USUALLY FAVORED AS THE YEN WEAKENS AS THIS
WIDENS THEIR PROFIT MARGINS

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 62
POINTS TO 28371 WITH 56 OF THE STOCKS IN THE INDEX GAINING AND 31
RETREATING THE FT 30STOCK INDEX GAINED 74 POINTS TO 22285 VOLUME WAS
5924 MILLION SHARES COMPARED WITH 4481 MILLION SHARES A DAY EARLIER

BRITISH INVESTORS HAD A MUTED RESPONSE TO BULLISH NEWS BRITAIN'S INDUSTRIAL
PRODUCTION JUMPED 2 IN MAY OFFERING A FRESH SIGN OF ECONOMIC RECOVERY
WHILE WALL STREET EXHIBITED EARLY STRENGTH AND THE US PRODUCER PRICE INDEX
FOR JUNE FELL 03 SOME ANALYSTS SUGGESTED THAT THE SURGE IN BRITISH OUTPUT
ARGUED AGAINST FURTHER INTERESTRATE CUTS THE INVESTOR LETHARGY ALSO WAS
ATTRIBUTED TO PREOCCUPATION WITH FOREIGNCURRENCY MOVEMENTS ESPECIALLY FOR
THE GERMAN MARK AND FRENCH FRANC AS WELL AS THE BRISK PACE OF INITIAL
PUBLIC OFFERINGS AND RIGHTS ISSUES ON THE BRITISH EXCHANGE

IN FRANKFURT THE DAX 30STOCK INDEX FELL 1110 POINTS TO 180716 WELL
ABOVE THE INTRADAY LOW OF 179797 OF THE DAX ISSUES 27 DROPPED AND 2 ROSE

DESPITE THE EXPECTED DECLINE PARTICIPANTS SAID THE MARKET STILL EXHIBITED
CONFIDENCE BY CLOSING ABOVE 1800 AND INDICATED FURTHER GAINS TO COME THOUGH
THESE COULD BE DELAYED SOMEWHAT BY THE FRIDAY EXPIRATION OF OPTIONS AND
FUTURES CONTRACTS SOME PLAYERS TAKEN BY SURPRISE BY THE STRONG RECENT
RALLY COULD TRY TO DRIVE STOCK PRICES LOWER TO MATCH FUTURES CONTRACTS
REINING IN THE STOCK MARKET A BIT FRANKFURT VOLUME BEGAN TO THIN AHEAD OF A
GERMAN CENTRAL BANK MEETING THURSDAY AS INVESTORS' HOPES FOR AN
INTERESTRATE REDUCTION REMAINED ALIVE

IN PARIS STOCKS ENDED FLAT IN QUIET TRADING AS MUCH LIQUIDITY DRAINED FROM
THE MARKET AHEAD OF TODAY'S BASTILLE DAY HOLIDAY IN FRANCE MILAN SHARES
FELL THOUGH THEY DID REGAIN MUCH OF THE EARLY LOSSES FROM POSITIONSQUARING
AHEAD OF TECHNICAL DEADLINES MADRID PRICES AFTER DROPPING ON
DISAPPOINTMENT ABOUT UNCHANGED SPANISH INTEREST RATES YESTERDAY REVERSED
COURSE LATE IN THE SESSION TO FINISH HIGHER AFTER INVESTORS DECIDED THAT
THE NAMING OF THE NEW GOVERNMENT CABINET WILL PAVE THE WAY FOR LOWER
INTEREST RATES

IN STOCKHOLM HEAVY DEMAND FOR SOME BLUE CHIPS AND SHARP ADVANCES FOR SOME
SMALLER REAL ESTATE SHARES PUSHED THE MARKET TO A NEW 1993 HIGH FOR THE
SECOND DAY IN A ROW PRICES WERE BUOYED BY THE US DOLLAR'S STRENGTH WHICH
BENEFITS SWEDISH FIRMS WITH NORTH AMERICAN OPERATIONS AND BY BROADLY
DECLINING MONEY MARKET RATES AND IN BRUSSELS SHARES ROSE BROADLY FOR A
FIFTH CONSECUTIVE SESSION BUCKING THE EUROPEAN TREND AND ENDED AT A NEW
HIGH FOR THE THIRD DAY IN A ROW

IN SYDNEY SHARE PRICES FOR THE SECOND DAY RUNNING PROPELLED THE
ALLORDINARIES INDEX TO A RECORD SIXYEAR CLOSING HIGH PROFITTAKING IN
GOLD STOCKS PULLED THE MARKET BACK AT ONE POINT BUT STOCK FUTURES CONTRACTS
HIT A NEW HIGH BOLSTERING STOCKS ACROSS THE BOARD

SEOUL SHARES' DECLINE MARKED THE THIRD CONSECUTIVE DAY OF LOSSES

AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH TELECOMMUNICATIONS FELL 25
PENCE TO 4105 PENCE 607 THE ONE MILLION RETAIL APPLICATIONS RECEIVED
MATCHED THE 50 LEVEL RESERVED FOR SMALL INVESTORS IN THE BRITISH
GOVERNMENT'S 52 BILLION 769 BILLION OFFER TO SELL ITS 22 STAKE IN BT
THE GOVERNMENT HAS THE OPTION TO RAISE TO 67 THE RETAIL PART OF THE OFFER
WHICH CLOSES TODAY REMAINING SHARES WILL BE SOLD TO BRITISH AND OVERSEAS
INSTITUTIONAL INVESTORS BY FRIDAY THE FINAL PRICE OF THE SHARES WILL BE
ANNOUNCED SUNDAY

UNILEVER PLUNGED 25 OR 25 TO 977 ON MARKET SPECULATION THAT THE
ANGLODUTCH FOOD AND HOUSEHOLD PRODUCTS COMPANY'S US COMPETITOR PROCTER &
GAMBLE HAS CUT US PRICES OF SOME HOUSEHOLD PRODUCTS BY 15 P&G LATER
CONFIRMED IT WAS CUTTING PRICES OF SOME DETERGENTS 3 TO 15 IN AMSTERDAM
UNILEVER SHARES DROPPED 37 GUILDERS OR 18 TO 19750 GUILDERS 10157

IN ZURICH ROCHE HOLDING ROSE 20 SWISS FRANCS TO 8650 FRANCS 565883
THE PHARMACEUTICAL COMPANY'S FIRSTHALF GROUP SALES ROSE 8 TO 715 BILLION
FRANCS 468 BILLION FROM A YEAR EARLIER FOR 1993 ROCHE PREDICTED A
SIGNIFICANT INCREASE IN GROUP PROFIT FROM THE YEAREARLIER 192 BILLION
FRANCS AND POSITIVE SALES WHICH TOTALED 1295 BILLION FRANCS LAST YEAR

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
9307140005 930714 BUSINESS BRIEF BANK SOUTH CORP CONCERN HOPES TO
EXCEED ANALYSTS' EARNINGS ESTIMATES

BANK SOUTH CORP IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT IT WILL
REPORT SECONDQUARTER EARNINGS OF 25 CENTS TO 26 CENTS A SHARE PATRICK L
FLINN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID

IN THE YEARAGO QUARTER THE ATLANTA BANKING CONCERN HAD EARNINGS OF 16
MILLION OR FOUR CENTS A SHARE FOR THE 1993 SECOND QUARTER FLINN SAID HE
WOULD HOPE TO EXCEED ANALYSTS' ESTIMATES

FOR 1993 ANALYSTS' EARNINGS ESTIMATES RANGE FROM 1 TO 115 A SHARE LAST
YEAR BANK SOUTH HAD EARNINGS OF 283 MILLION OR 74 CENTS A SHARE FLINN
SAID THE CONSENSUS ESTIMATE OF 108 A SHARE FOR 1993 WAS ACHIEVABLE AND
ADDED THE COMPANY SHOULD BE ABLE TO EXCEED THAT FIGURE

THE COMPANY WHICH DIDN'T PAY A DIVIDEND IN 1992 PAID A DIVIDEND OF FOUR
CENTS A SHARE IN APRIL AND JULY FLINN SAID THE BANK PLANS TO PAY A DIVIDEND
IN THE THIRD AND FOURTH QUARTERS

FLINN SAID LOAN QUALITY IS IMPROVING AND THE COMPANY IS WORKING ON SHRINKING
ITS LOANLOSS PROVISIONS 9307140004 930714 INTERNATIONAL BRIEF LUCKY
GOLDSTAR GROUP SOUTH KOREAN CONCERN PLANS TO TRIM NUMBER OF UNITS

LUCKY GOLDSTAR GROUP OF SOUTH KOREA ANNOUNCED A STREAMLINING PLAN UNDER
WHICH IT WILL CUT ITS NUMBER OF SUBSIDIARIES TO 41 FROM 54 THROUGH MERGERS
AND SELLOFFS

THE SOUTH KOREAN GOVERNMENT HAS TOLD THE COUNTRY'S CONGLOMERATES TO BETTER
FOCUS THEIR OFTENSPRAWLING OPERATIONS

LUCKY GOLDSTAR SAID IT WILL MERGE FIVE SUBSIDIARIES INTO OTHER UNITS
GOLDSTAR ELECTRIC MACHINERY CO AND GOLDSTAR INSTRUMENT & ELECTRIC CO INTO
GOLDSTAR INDUSTRIAL SYSTEM CO KUKJE ELECTRIC WIRE CO INTO GOLDSTAR CABLE
CO KOREA TANKER CO INTO HONAM TANKER CO AND SAMKYUNG PETROLEUM INTO
GLOBAL PETROLEUM CO

THE BUSINESS GROUP WILL SELL ITS STAKE IN EIGHT COMPANIES SUNYONG CO
SAMWOO SPECIAL METALS CO SIEMENS GOLDSTAR MEDICAL SYSTEM LUCKY AUTOMOBILE
REPAIRS & CLAIMS ADJUSTING CO TELEELECTRIC INSTALLATION CO LUCKY ALLIED
SIGNAL CO LUCKY EPOXY LTD AND BUMIN MUTUAL SAVING & FINANCE CORP
9307140003 930714 HALLIBURTON UNIT WINS OIL BID

DALLAS A HALLIBURTON CO UNIT WAS AWARDED A 193 MILLION CONTRACT FOR
SERVICES IT WILL PROVIDE A NEW OILFIELD DEVELOPMENT IN THE SOUTH CHINA SEA

THE UNIT BROWN & ROOT MARINE BASED IN HOUSTON SAID AMOCO CORP'S AMOCO
ORIENT PETROLEUM CHICAGO AWARDED THE CONTRACT BROWN & ROOT MARINE WILL
DESIGN A SAFETY CONTROL AND COMMUNICATIONS SYSTEM AND MONITOR PROJECT COSTS
AND SCHEDULING

AMOCO WITH THE CHINA OFFSHORE OIL NANHAI EAST CORP IS DEVELOPING WHAT IS
BILLED AS THE LARGEST OILFIELD DISCOVERY IN THE SOUTH CHINA SEA THE LIUHUA
111 DEVELOPMENT PROJECT EXPECTED TO BEGIN OIL PRODUCTION IN 1996 PEAK
OUTPUT IS EXPECTED TO BE 50000 TO 60000 BARRELS A DAY 9307140002 930714
BUSINESS BRIEF COLUMBIA GAS SYSTEMS INC US RULING TO ALLOW UNIT 
TO PASS THROUGH REFUNDS

COLUMBIA GAS TRANSMISSION CORP SAID A FEDERAL COURT RULING WILL ALLOW IT TO
PASS THROUGH 177 MILLION IN REFUNDS TO ITS RETAIL GAS COMPANY CUSTOMERS

COLUMBIA GAS TRANSMISSION LIKE ITS PARENT COMPANY COLUMBIA GAS SYSTEMS
INC HAS BEEN OPERATING UNDER PROTECTION FROM CREDITORS OF CHAPTER 11 OF
THE US BANKRUPTCY CODE SINCE JULY 1991 AS PART OF THE BANKRUPTCY
PROCEEDINGS NONCUSTOMER CREDITORS HAD PROTESTED THE PASS THROUGH OF
REFUNDS SAYING THAT THE FUNDS SHOULD BE USED TO REPAY CREDITOR CLAIMS

THE THIRD CIRCUIT COURT OF APPEALS IN PHILADELPHIA HOWEVER RULED THAT
COLUMBIA GAS TRANSMISSION COULD PASS THE REFUNDS FROM ITS UPSTREAM SUPPLIERS
TO ITS RETAIL GAS COMPANY CUSTOMERS

HOWEVER AN ADDITIONAL 31 MILLION IN REFUNDS WAS DISALLOWED AND THAT
AMOUNT HAS BEEN ADDED TO UNSECURED DEBT CLAIMS 9307140001 930714 SHAW
INDUSTRIES FORMS VENTURE

DALTON GA SHAW INDUSTRIES INC A CARPET MANUFACTURER SAID IT ENTERED
AN AGREEMENT TO FORM A JOINT VENTURE WITH CAPITAL CARPET INDUSTRIES PTY
LTD OF MELBOURNE AUSTRALIA

UNDER THE JOINT VENTURE ANOTHER AUSTRALIAN CARPET MANUFACTURER INVICTA
GROUP INDUSTRIES PTY LTD HAS ALREADY BEEN ACQUIRED TERMS OF THE
TRANSACTION WEREN'T DISCLOSED 9307130176 930713 ONTARIO HYDRO SEES
BIGGER LOSS THAN '93 FORECAST  BY SUZANNE MCGEE STAFF REPORTER
OF THE WALL STREET JOURNAL

TORONTO ONTARIO HYDRO EXPECTS TO REPORT A LARGER LOSS THAN EXPECTED THIS
YEAR AS WRITEOFFS CONNECTED WITH ITS ONGOING RESTRUCTURING CONTINUE TO
MOUNT UP AND ITS OPERATING PERFORMANCE WORSENS

ACCORDING TO INTERNAL HYDRO DOCUMENTS THE UTILITY NOW EXPECTS TO RECORD A
LOSS OF 16 BILLION CANADIAN DOLLARS US125 BILLION FOR 1993 COMPARED
WITH PREVIOUS ESTIMATES THAT ITS LOSS WOULD BE ABOUT C1 BILLION HYDRO SAID
IT EXPECTS TO REPORT AN OPERATING LOSS OF ABOUT C200 MILLION THIS YEAR
WITH THE REMAINDER OF THE NET LOSS RESULTING FROM SEVERANCE EXPENSES AND A
VARIETY OF WRITEDOWNS IN 1992 HYDRO HAD NET OF C312 MILLION

THE STATEOWNED UTILITY FACES EVEN MORE BAD NEWS IN THE MONTHS TO COME
DEMAND FOR ELECTRICITY SHOWS NO SIGNS OF IMPROVEMENT AS ONTARIO STRUGGLES TO
RECOVER FROM RECESSION WHILE THE UTILITY HAS BEEN FORCED TO SHUT DOWN PART
OF ITS LOWERCOST NUCLEAR FACILITIES AND USE HIGHCOST GENERATING CAPACITY
IN ITS PLACE

AT THIS POINT WE'RE ASSUMING THAT WHAT WE'VE SEEN TO DATE WILL CONTINUE
OVER THE REST OF THE YEAR SAID FRED LONG MANAGER OF ACCOUNTING POLICY AND
EXTERNAL REPORTING FOR HYDRO HE SAID HYDRO NOW FEELS ITS EARLIER FORECASTS
FOR RECOVERY IN 1994 AND FOLLOWING YEARS MAY HAVE BEEN TOO OPTIMISTIC EVEN
IF THE ECONOMY DOES TURN AROUND IN THE SECOND HALF OF 1993 IT WILL BE TOO
LITTLE TOO LATE

ACCORDING TO THE INTERNAL DOCUMENTS HYDRO RECORDED A LOSS OF C395 MILLION
FOR THE FIRST SIX MONTHS OF 1993 ALTHOUGH UNDER ITS FINANCIAL PLAN IT HAD
HOPED TO POST A PROFIT OF C362 MILLION IN JUNE THE UTILITY HAD A NET LOSS
OF C131 MILLION C80 MILLION MORE THAN EXPECTED UNDER THE FINANCIAL PLAN

THE DOCUMENTS SAY THAT THERE ARE UNCERTAINTIES THAT COULD LEAD TO
DETERIORATION IN THE FINANCIAL OUTLOOK FOR 1993 THESE INCLUDE POSSIBLE
CHANGES IN THE VOLUME OF ELECTRICITY SALES AND ENERGY PRODUCTION PLANS AS
WELL AS ADDITIONAL WRITEOFFS

HYDRO'S MR LONG SAID THAT THE UTILITY REMAINS COMMITTED TO NOT RAISING
RATES IN 1994 AND TO KEEPING FUTURE INCREASES CLOSE TO THE RATE OF
INFLATION ANALYSTS ATTRIBUTE PART OF HYDRO'S PROBLEMS TO A SERIES OF RECENT
HEFTY RATE INCREASES TO FINANCE CONSTRUCTION OF A NEW NUCLEAR PLANT

THOMAS ADAMS AN ANALYST WITH ENERGY PROBE A TORONTOBASED ENVIRONMENTAL
LOBBY GROUP SAYS HE EXPECTS HYDRO'S REVENUES TO CONTINUE TO DECLINE

WE'RE SEEING A BREAK IN THE HISTORIC PATTERN THAT ECONOMIC IMPROVEMENTS
RESULT IN HIGHER CONSUMPTION MR ADAMS SAID LARGE INDUSTRIAL CONSUMERS
HE ADDED ARE SUFFERING FROM RATE SHOCK

MR LONG SAID DETERIORATING OPERATING EARNINGS AT HYDRO COULD FORCE THE
UTILITY TO LOOK AT OTHER WAYS TO CUT COSTS IT IS ALREADY DEFERRING MANY
CAPITAL SPENDING PROJECTS CUTTING BACK ON THE PURCHASE OF INDEPENDENTLY
GENERATED POWER AND PLANS TO CUT 4500 POSITIONS FROM ITS PAYROLL

THE DETERIORATION IN FINANCIAL PERFORMANCE ALSO COULD FORCE THE UTILITY TO
SEEK A CHANGE IN THE ONTARIO LEGISLATION UNDER WHICH IT OPERATES MR LONG
SAID HE EXPECTS HYDRO'S C164 BILLION RATE STABILIZATION FUND TO BE IN A
DEFICIT POSITION ONCE DEBT RETIREMENT OBLIGATIONS ARE FINANCED THIS YEAR
HYDRO IS STUDYING THE LEGAL IMPLICATIONS OF THIS SITUATION

FOR THE TIME BEING HYDRO'S PUBLICLY TRADED BONDS APPEAR IMMUNE TO THE
UPHEAVAL SINCE INTEREST AND PRINCIPAL PAYMENTS ARE GUARANTEED BY THE
PROVINCE BUT BONDRATING ANALYSTS WARN THAT IF HYDRO'S PROBLEMS CONTINUE
THEY COULD HAVE A NEGATIVE EFFECT ON THE RATING OF THE PROVINCE ITSELF AS
COULD ANY MOVE TO SOLVE PROBLEMS BY MORE RATE INCREASES WHICH MIGHT DRIVE
BUSINESS OUT OF THE PROVINCE

BUT BOND TRADERS WELL AWARE OF HYDRO'S DIFFICULTIES SAY THAT IT IS THIS
GUARANTEE THAT IS SUPPORTING CURRENT PRICING LEVELS IF HYDRO WERE A
PRIVATE CORPORATION WE'D SEE VERY VERY DIFFERENT PRICES ONE PROVINCIAL
BOND TRADER SAID 9307130174 930713 INDEPENDENT ENTERTAINMENT

SHERMAN OAKS CALIF INDEPENDENT ENTERTAINMENT GROUP SAID IT CHANGED ITS
NAME TO INDEPENDENT TELEMEDIA GROUP INC AFTER SHAREHOLDERS APPROVED THE NEW
NAME THE PROVIDER OF PAYPERVIEW TELEPHONE INFORMATION AND ENTERTAINMENT
SAID ITS NEW NAME MORE ACCURATELY DESCRIBES ITS BUSINESS 9307130173
930713 SHENZHEN STOCK EXCHANGE

HONG KONG THE SHENZHEN STOCK EXCHANGE IS HOLDING WEEKLY NEWS MEETINGS TO
IMPROVE INFORMATIONAL DISCLOSURE OF THE BOURSE AND LISTED COMPANIES

THE MEASURE ALONG WITH ITS NEW ESTABLISHMENT OF AN INFORMATION DEPARTMENT
IS SEEN AS THE EXCHANGE'S EFFORTS TO MAKE THE EXCHANGE'S AND LISTED
COMPANIES' INFORMATION MORE ACCESSIBLE TO THE PUBLIC

NEWS RELEASES WILL BE GIVEN OUT ON THE MEETINGS HELD EVERY FRIDAY IN THE
EXCHANGE BUILDING AN OFFICIAL OF THE INFORMATION DEPARTMENT SAID

THE OFFICIAL SAID THE WEEKLY MEETINGS WHICH HAVE BEEN HELD SINCE JULY 2
ARE AIMED AT GRADUALLY PLACING THE SHENZHEN BOURSE IN LINE WITH
INTERNATIONAL PRACTICES IN TERMS OF INFORMATION DISCLOSURE 9307130171
930713 SONY PRODUCTION OF AUDIO TAPE

TOKYO SONY CORP SAID IT WILL SHIFT ITS PRODUCTION OF AUDIO TAPE FOR
EXPORT TO OVERSEAS FACTORIES TO FREE PRODUCTION SPACE FOR NEW DIGITAL AUDIO
MEDIA AND TO COMBAT THE EFFECTS OF THE STRONG YEN

THE MOVE WILL ALLOW A FACTORY IN NORTHERN JAPAN TO INCREASE THE OUTPUT OF
DISKS FOR MINIDISC DIGITAL AUDIO DECKS IN RESPONSE TO INCREASING DEMAND
SAID A SPOKESWOMAN FOR THE CONSUMER ELECTRONICS CONCERN

TRANSFERRING PRODUCTION OF TAPE FOR MARKETS OUTSIDE OF JAPAN TO THAILAND AND
MEXICO SHE SAID ALSO WILL HELP THE COMPANY COPE WITH THE YEN'S FIRMNESS
WHICH ERODES RETURNS ON MADEINJAPAN EXPORTS

SONY NOW TURNS OUT 340000 MDFORMAT DISKS A MONTH AND AFTER RETOOLING
THE TAPE LINE WILL HAVE CAPACITY TO TURN OUT 150 MILLION DISKS A MONTH
WITHIN THE YEAR THE SPOKESWOMAN SAID

INCLUDING SOME PURCHASES OF DISKS FROM OTHER MAKERS THE PLAN IS TO RAISE
SONY'S SUPPLY TO TWO MILLION DISKS A MONTH FROM THE PRESENT 500000 DISKS A
MONTH SHE SAID 9307130170 930713 INTERNATIONAL FOREIGN INVESTMENT IN
TAIWAN

TAIPEI TAIWAN FOREIGN INVESTMENT IN TAIWAN APPROVED IN THE FIRST HALF OF
THE YEAR FELL 24 TO 428 MILLION FROM A YEAR EARLIER

THE DROP WAS ATTRIBUTED MAINLY TO A HUGE SHRINKAGE FROM JAPANESE INVESTMENT
OFF 60 AT 763 MILLION EUROPE BECAME THE BIGGEST INVESTOR WITH 908
MILLION UP 72 US INVESTMENT DECLINED 24 TO 648 MILLION

TAIWAN'S ELECTRONICS AND ELECTRIC APPLIANCE INDUSTRY HAD THE MOST APPROVED
FOREIGN INVESTMENT 120 MILLION OR 28 OF THE TOTAL THAT WAS FOLLOWED BY
INTERNATIONAL TRADE 12 FOOD AND BEVERAGE 9 FINANCE AND INSURANCE 9
AND NONMETAL MANUFACTURING 8 9307130169 930713 BUSINESS BRIEF 
FRENCH CONCERN EXPLORING POSSIBLE SALE OF 503 STAKE IN SMART & FINAL
INC

SANTA BARBARA CALIF GROUPE CASINO SCA SAID IT MIGHT SELL ITS 503
STAKE IN SMART & FINAL INC A WHOLESALE GROCER

CASINO SAID IT HIRED THE INVESTMENT FIRM OF LAZARD FRERES & CO TO EXPLORE
ALTERNATIVES REGARDING ITS INVESTMENT IN CASINO USA ITS US UNIT WHICH
CONTROLS SMART & FINAL AS WELL AS OTHER REAL ESTATE AND RESTAURANT
INVESTMENTS CASINO SAID IT PLANS TO FOCUS ON ITS CORE INVESTMENTS IN
FRANCE WHERE IT IS A FOOD DISTRIBUTOR

IN LATE NEW YORK STOCK EXCHANGE TRADING SMART & FINAL WAS QUOTED AT 1725
UP 1 GIVING CASINO'S STAKE IN THE GROCERY CONCERN A MARKET VALUE TO 1779
MILLION

ANALYSTS SAID SEVERAL OPTIONS ARE AVAILABLE TO CASINO INCLUDING SEEKING ONE
BUYER WHO WOULD PAY A PREMIUM FOR ITS ENTIRE 503 STAKE IN SMART & FINAL A
MANAGEMENTLED BUYOUT IS ANOTHER POSSIBILITY THE COMPANY ALSO COULD OFFER
SHARES ON THE OPEN MARKET

SMART & FINAL FOUNDED IN 1871 AS A GRAIN AND FEED STORE OPERATES 131
CASHANDCARRY GROCERY WAREHOUSES IN CALIFORNIA NEVADA AND ARIZONA CASINO
ACQUIRED 96 OF THE COMPANY FROM THRIFTIMART INC IN 1985 FOR 117 MILLION
THEN TOOK THE COMPANY PUBLIC IN 1991 SMART & FINAL'S STORES SERVE THE
RESTAURANT INDUSTRY BUT ALSO WALKIN CONSUMERS

SMART & FINAL IS WELLMANAGED THEY HAVE A GOOD OPERATING RECORD AND
THEY'VE BEEN OUTPERFORMING COMPARABLE STORES CLUBS AND SUPERMARKETS SAID
JONATHAN H ZIEGLER AN ANALYST AT SALOMON BROTHERS IN SAN FRANCISCO THIS
DESPITE INCREASED COMPETITION FROM WAREHOUSE CLUBS AND A CONTINUING
RECESSION IN SOUTHERN CALIFORNIA HE SAID

RICHARD CHURCH ANALYST AT SMITH BARNEY HARRIS UPHAM & CO SAYS SMART &
FINAL'S STOCK IS A LITTLE BIT UNDERVALUED THEY HAVE ALMOST 40 MILLION IN
CASH AND LITTLE OR NO DEBT THEY'RE A HIGHLY HONED FINELY TUNED COMPANY
WITH A UNIQUE STRATEGY SMART & FINAL DOESN'T COMPETE DIRECTLY WITH THE
WAREHOUSE CLUBS HE SAID BUT THE PROLIFERATION OF THESE CLUBS MAY HELP
SMART & FINAL BY MAKING CONSUMERS MORE EDUCATED ABOUT VOLUMEDISCOUNT
SHOPPING

SEPARATELY SMART & FINAL REPORTED NET INCOME OF 46 MILLION OR 22 CENTS A
SHARE FOR THE SECOND QUARTER ENDED JUNE 20 UP FROM 41 MILLION OR 20
CENTS A SHARE A YEAR EARLIER PERSHARE FIGURES ARE ADJUSTED TO REFLECT A
3FOR2 STOCK SPLIT IN FEBRUARY

THE COMPANY SAID IT ACHIEVED THE HIGHER EARNINGS DESPITE AN EXPANSION
PROGRAM DURING WHICH IT HAS OPENED 25 NEW STORES SINCE THE BEGINNING OF
1992

SALES IN THE QUARTER ROSE 12 TO 1974 MILLION FROM 1768 MILLION
9307130168 930713 BUSINESS BRIEF BANC ONE CORP UNIT WINS JOB TO
MANAGE PORTFOLIO OF FDIC LOANS

A BANC ONE CORP UNIT WON THE BIDDING FOR A THREEYEAR CONTRACT TO MANAGE A
17 BILLION PORTFOLIO OF FEDERAL DEPOSIT INSURANCE CORP LOANS

THE MOVE INCREASES THE VALUE OF LOANS MANAGED BY BANC ONE MANAGEMENT &
CONSULTING CORP TO 47 BILLION FROM 3 BILLION AND MAKES IT ONE OF THE
TOP CONCERNS IN THE US HANDLING FDIC AND RESOLUTION TRUST CORP LOANS

MOREOVER THE TRANSACTION BOOSTS THE LEVEL OF PERFORMING LOANS MANAGED BY
THE UNIT HOPEFULLY PEOPLE WILL START ASSOCIATING US WITH MORE THAN JUST
HANDLING PROBLEM LOANS A BANC ONE SPOKESMAN SAID

THE BANC ONE UNIT WOULDN'T DISCLOSE HOW MUCH IT BID ON THE LOAN PORTFOLIO
BUT SAID IT WILL RECEIVE A FEE FOR PROCESSING LOAN PAYMENTS OF THE
PERFORMING COMMERCIAL LOANS ALL OF WHICH INVOLVE COMMERCIAL REAL ESTATE

IN 1992 THE UNIT CONTRIBUTED 28 MILLION OF COLUMBUS OHIOBASED BANC ONE'S
7813 MILLION IN NET INCOME THE TRANSACTION WILL INCREASE EMPLOYMENT IN
THE UNIT WHICH IS BASED IN DALLAS TO ABOUT 840 FROM 800 9307130167
930713 INTERNATIONAL BRIEF TOMKINS PLC PRETAX PROFIT INCREASED 29 
IN FIRM'S LATEST FISCAL YEAR

ANGLOUS CONGLOMERATE TOMKINS PLC REPORTED A 29 JUMP IN PRETAX PROFIT FOR
THE FISCAL YEAR ENDED MAY 1 BUT ITS STOCK FELL MORE THAN 5 AS THE COMPANY
OFFERED A GUARDED ASSESSMENT OF THE PACE OF RECOVERY IN BOTH THE US AND
THE UK

TOMKINS OPERATES 72 SEPARATE BUSINESSES INCLUDING INDUSTRIAL PRODUCTS
LEISURE PRODUCTS AND FOOD DISTRIBUTION GREGORY HUTCHINGS TOMKINS'S CHIEF
EXECUTIVE SAID HE BELIEVES THE ECONOMY IS BUMPING ALONG AT THE BOTTOM

HE ALSO SAID TOMKINS PLANS NO NEW ACQUISITIONS UNTIL THE BUSINESSES OF FOOD
CONCERN RANKS HOVIS MCDOUGALL ARE UP AND RUNNING THAT MEANS NO
ACQUISITION PLANS FOR THE NEXT TWO YEARS HE SAID

TOMKINS ACQUIRED RHM IN DECEMBER FOR 952 MILLION 141 BILLION THROUGH
RHM TOMKINS HAS A 34 SHARE OF THE UK BREAD MARKET

FOR THE LATEST YEAR TOMKINS SAID PRETAX PROFIT ROSE TO 171 MILLION FROM
1321 MILLION AND SAID ORDER BOOKS WERE AHEAD OF A YEAR EARLIER

TOMKINS'S SALES ROSE TO 14 BILLION FROM 127 BILLION A YEAR EARLIER
EARNINGS PER SHARE JUMPED TO 1326 PENCE FROM 1274 PENCE THE TOTAL
DIVIDEND FOR THE YEAR WILL BE 635 PENCE A SHARE UP FROM 523 PENCE

IN TRADING YESTERDAY IN LONDON TOMKINS SHARES CLOSED AT 2125 PENCE DOWN
115 PENCE 9307130166 930713 LEISURE & ARTS ON SPORTS SKY BEAUTY
THE BELLE OF BELMONT  BY FREDERICK C KLEIN

ELMONT NY H ALLEN JERKENS THE TRAINER HAD JUST WATCHED ONE OF HIS
HORSES WIN A FAMOUS RACE BUT HE LOOKED AS THOUGH HE'D RETURNED FROM A TRIP
TO THE DENTIST

GLAD IT'S OVER SOMEONE ASKED

YEAH HE REPLIED

HIS HORSE A FILLY ACTUALLY WAS SKY BEAUTY AND THE RACE ON SUNDAY
AFTERNOON WAS THE COACHING CLUB AMERICAN OAKS STAKES AT BELMONT PARK THE
WIN WAS WORTH 150000 TO THE HUMAN PRINCIPALS OF THE LARGISH MEDIUMBROWN
CHARGER AND HAD HISTORICAL SIGNIFICANCE AS WELL THE OAKS WAS THE LAST LEG
OF THE SOCALLED TRIPLE TIARA THE BIGGEST PRIZE IN US FILLYDOM AND IN
WINNING IT SKY BEAUTY ADDED HER NAME TO A DISTINGUISHED LIST

THIS WAS HOWEVER THE KIND OF RACE THE WINNER'S TRAINER SWEATS AND NOT
ONLY BECAUSE OF THE 90DEGREE TEMPERATURES THAT WERE BAKING GOTHAM AND
VICINITY BY VIRTUE OF HER DECISIVE TRIUMPHS IN THE PREVIOUS TWO TIARA
JEWELS THE ONEMILE ACORN ON MAY 8 AND THE 1 1/8 MILE MOTHER GOOSE ON
JUNE 6 SKY BEAUTY WAS SENT OFF AT ODDS OF 1TO10 SUNDAY MEANING THAT
ABOUT 91 OF THE TRACK'S WIN POOL RESTED ON HER NOSE AND THAT IN TURN
MEANT THAT ABOUT 91 OF THE 13032 SHADESEEKERS ON HAND WOULD HAVE BEEN
DECIDEDLY UNHAPPY IF THE ANIMAL HAD FAILED

AND FAIL SHE NEARLY DID ALTHOUGH TESTIMONY ON THE SERIOUSNESS OF THE THREAT
DIFFERED THE THREATENER WASN'T DISPUTE THE SECOND CHOICE IN THE BETTING
BUT FUTURE PRETENSE THE 14TO1 FOURTH CHOICE IN THE FIVEHORSE FIELD SHE
CAME FROM LAST AT THE 3/4MILE MARK OF THE 1 1/4MILE RACE TO SECOND BY
1/2LENGTH AT THE WIRE AND WHILE SHE NEVER LED SHE GAVE THOSE IN THE CROWD
A THRILL OR A SCARE DEPENDING ON THEIR POSITION

MIKE SMITH SKY BEAUTY'S JOCKEY LATER SAID HE WAS NEVER CONCERNED ABOUT
FUTURE PRETENSE'S RUSH MY HORSE GOT A LITTLE BORED THE LAST 1525 YARDS
BUT AS SOON AS THAT OTHER HORSE GOT ALONGSIDE HER AFTER THE FINISH SHE
GALLOPED OFF AGAIN SAID HE

TRAINER JERKENS VIEWED THE SAME SCENE LESS CALMLY I WAS A LITTLE NERVOUS
THE LAST FEW JUMPS HE CONFESSED HORSES HAD BEEN COMING DOWN THAT
OUTSIDE LANE AND WINNING ALL DAY

BUT SKY BEAUTY PREVAILED LEAVING ONLY A TANGENTIAL DISPUTE THAT WAS OVER
WHETHER THE TRIO OF RACES FOR THREEYEAROLDS DESERVES ITS GRAND TITLE
TRIPLE TIARA' MY FOOT SPAT THE MAN DOWN THE ROW FROM ME IN THE BELMONT
PRESS BOX WHAT'S THE MATTER WITH FILLY TRIPLE CROWN' THAT'S WHAT THEY
USED TO CALL IT IN FACT THE TITLE BELMONT PARK FILLY TRIPLE CROWN WOULD
BE MORE ACCURATE GIVEN THE FACT THAT ALL THE RACES IN QUESTION ARE STAGED
ON THE BIG 1 1/2MILE LONG ISLAND OVAL

NONETHELESS ONE NEEDN'T STRETCH FAR TO MAKE A CASE FOR THE HONOR INVOLVED
IN WINNING THE TIARA FOR ONE THING THE SERIES IS LAID OUT SENSIBLY WITH
MONTHLONG BREAKS BETWEEN THE RACES THIS CONTRASTS WITH THE FRANTIC
EVERYTWOWEEKS PACE OF THE OLDER AND MORE CELEBRATED TRIPLE CROWN FOR
THREEYEAROLD COLTS FOR ANOTHER THE TITLE HAS HAD SEVEN PREVIOUS
CLAIMANTS SINCE THE MOTHER GOOSE THE LAST OF THE TRIO WAS INAUGURATED IN
1957 AND ALL STAND OUT IN THE LORE OF THE TURF

DARK MIRAGE 1968 AND SHUVEE '69 WERE BY MANY ESTIMATES THE BEST
FILLIES OF THEIR DECADE AND CHRIS EVERT '74 RUFFIAN '75 AND DAVONA
DALE '79 THE BEST OF THEIRS RUFFIAN'S MEMORABLE AND FATAL BREAKDOWN IN
HER BELMONT MATCH RACE WITH THE KENTUCKY DERBYWINNING COLT FOOLISH
PLEASURE CAME IN HER NEXT OUTING AFTER HER OAKS TRIUMPH HAD CEMENTED HER
HEGEMONY OVER HER OWN SEX

MOM'S COMMAND '85 AND OPEN MIND '89 WERE THE '80S WINNERS BOTH EASILY
WON BESTTHREEYEAROLDFILLY HONORS IN THOSE YEARS AND WERE STRONG
CONTENDERS FOR HORSE OF THE YEAR

AFTER SUNDAY'S GO THERE'S NO DOUBT SKY BEAUTY DESERVES SIMILAR ACCLAIM IN
HER NINE CAREER RACES THIS YEAR AND LAST SHE HAS WON SEVEN TIMES AND HAS
BEEN LED ACROSS THE FINISH LINE BUT ONCE THAT'S BECAUSE ONE OF HER DEFEATS
IN A RACE LAST AUGUST AT SARATOGA CAME AFTER STEWARDS MOVED HER FROM FIRST
PLACE TO THIRD AS A RESULT OF A STARTINGGATE COLLISION WITH ANOTHER HORSE
HER LONE TRUE DEFEAT BY 1 3/4 LENGTHS AT THE BONNIE MISS STAKES IN MARCH AT
FLORIDA'S GULFSTREAM PARK WAS IN HER RETURN FROM A SIXMONTH LAYOFF

THE VICTOR IN THAT ONE WAS THE HARDRUNNING DISPUTE LEADING SOME TO
CONCLUDE THAT SUNDAY'S WOULD BE A MATCH RACE OF SORTS IT WASN'T DISPUTE
AT 4TO1 GOT OFF FIRST AS IS HER WONT BUT WAS PASSED AND PUT AWAY BY SKY
BEAUTY AT THE HEAD OF THE HOME STRETCH DISPUTE FINISHED FOURTH BEHIND THE
AFOREMENTIONED TWO AND SILKY FEATHER A 20TO1 SHOT

ALTHOUGH YOU COULD HARDLY TELL IT TO LOOK AT HIM THE TRIUMPH SURELY WAS
SWEET FOR THE 64YEAROLD JERKENS THE STOLID SOLIDLY BUILT NEW YORKER IS
A RACING LEGEND AT AGE 45 THE YOUNGEST TRAINER EVER ELECTED TO THE
SPORT'S HALL OF FAMEBUT IS LESS THAN WELL KNOWN OUTSIDE RACETRACK PRECINCTS
THAT'S THE FATE OF TRAINERS WHO'VE NEVER WON A KENTUCKY DERBY THE HORSE
RACE FOR AMERICANS WHOSE ATTENTIONS HAVE ROOM FOR ONLY ONE

INDEED JERKENS'S REPUTATION ETCHED IN PAST DECADES IS AS A KILLER OF
FAVORITES RATHER THAN A SADDLER OF SAME HIS BEAU PURPLE THRICE BEAT KELSO
WHEN THAT BEAST RULED THE TRACKS IN THE EARLY '60S AND 10 YEARS LATER TWO
OF HIS ANIMALS ONION AND PROVE OUT DEFEATED THE GREAT SECRETARIAT AND
WHILE HE ALLOWS THAT BEING AN OVERDOG HAS ITS MERITS IT HASN'T CHANGED HIS
OUTLOOK OR APPROACH

YOU DO THE BEST YOU CAN WITH EVERY HORSE YOU HAVE IT'S JUST THAT THE
RESULTS SOMETIMES TURN OUT DIFFERENT HE SAID IN WHAT AMOUNTED TO A SPEECH
FOR HIM

WITH THAT JERKENS MOVED TO THE DAIS OF THE BELMONT PARK WINNER'S CIRCLE
WHERE HE AND FRIENDS OF SKY BEAUTY'S ABSENT OWNER GEORGIA HOFMANN 
RECEIVED TROPHIES OF SEVERAL SIZES AND MEDALS BUT SO FAR AS I COULD SEE NO
TIARAS

C'MON JERKENS SMILE CRIED A RAILBIRD

HE DID BRIEFLY 9307130165 930713 THE COST OF SOCIAL SPENDING 
JOBLESSNESS  BY JOHN MUELLER

THOUGH PRESIDENT CLINTON HAS CALLED FOR A GLOBAL SUMMIT ON UNEMPLOYMENT
NEITHER THE PRESIDENT NOR HIS CRITICS HAVE CLEARLY FORMULATED THE MOST
IMPORTANT QUESTION RAISED BY HIS OWN ECONOMIC PROPOSALS SHOULD THE US
LIKE THE EUROPEAN COMMUNITY ACCEPT AN EVERHIGHER RATE OF UNEMPLOYMENT AS
THE COST OF EXPANDING SOCIAL PROGRAMS

BOTH THEORY AND EVIDENCE CLEARLY SHOW THAT THE MAIN REASON FOR THE SHARP
RISE IN UNEMPLOYMENT IN THE CURRENT EC COUNTRIES OVER THE PAST TWO DECADES
HAS BEEN THE MASSIVE EXPANSION OF THE REGION'S SOCIAL BENEFITS AND THE
MINIMUM WAGE PRESIDENT CLINTON'S PROPOSALS WOULD ACCELERATE THE SAME
PROCESS IN THE US

THE UNEMPLOYMENT PROBLEM WILL BE UNDERSTANDABLE TO ANYONE FAMILIAR WITH THE
ECONOMICS OF A CHILD'S LEMONADE STAND AT A PENNY A GLASS THE LEMONADE
QUICKLY RUNS OUT THE STAND FAILS TO COVER COSTS EVEN THOUGH CUSTOMERS MUST
BE TURNED AWAY AT 10 A GLASS THERE ARE GENERALLY NO SALES SOMEWHERE IN
BETWEEN IS THE PRICE THAT EQUALIZES SUPPLY AND DEMAND

THIS IS WHY GOVERNMENT PRICE CONTROLS ALWAYS CAUSE EITHER A SHORTAGE OR AN
UNSOLD SURPLUS BELOWMARKET RENT CONTROLS CREATE A HOUSING SHORTAGE
INTERESTRATE CEILINGS A CREDIT SHORTAGE GASOLINE PRICE CONTROLS A
GASOLINE SHORTAGE AND PRICE CONTROLS ON MEDICAL CARE IF ENACTED WILL
CAUSE A MEDICAL CARE SHORTAGE THE MOST IMPORTANT ABOVEMARKET GOVERNMENT
PRICE CONTROL IS THE MINIMUM WAGE WHICH CREATES A SURPLUS OF UNSOLD LABOR
 IN OTHER WORDS UNEMPLOYMENT

THE MINIMUM WAGE MAKES IT ILLEGAL TO HIRE UNSKILLED WORKERS AT WHAT THEIR
SKILLS ARE CURRENTLY WORTH SO THEY REMAIN UNEMPLOYED AND UNSKILLED BY
REDUCING COMPETITION THE MINIMUM WAGE MAY RAISE THE WAGES OF SKILLED
WORKERS BUT IT REDUCES THE INCOME OF WORKERS AS A GROUP

A SUBSIDY IN TURN IS RATHER LIKE A PARENT BUYING THE CHILD'S UNSOLD
INVENTORY OF LEMONADE THE SURPLUS THAT CAN'T BE SOLD AT AN ABOVEMARKET
PRICE IS PURCHASED BY THE GOVERNMENT FARM PRICE SUPPORTS INCREASE FARMERS'
INCOMES BUT ALSO CREATE UNSALABLE GOVERNMENTOWNED LAKES OF MILK AND
MOUNTAINS OF WHEAT

THIS IS ALSO HOW TRANSFER PAYMENTS CAUSE UNEMPLOYMENT THE GOVERNMENT IN
EFFECT PURCHASES LABOR SERVICES AT AN ABOVEMARKET WAGE THROUGH
UNEMPLOYMENT MEDICAL DISABILITY OR WELFARE BENEFITS OR RETIREMENT
BENEFITS IN EXCESS OF CONTRIBUTIONS THE BENEFIT IS HIGHER INCOME FOR THE
RECIPIENTS THE COST IS HIGHER UNEMPLOYMENT

SOCIAL BENEFITS PUT AN ABOVEMARKET FLOOR UNDER WAGES BECAUSE AT SOME POINT
IT IS MORE ATTRACTIVE TO COLLECT BENEFITS THAN TO WORK SO BUSINESSES
SUBSTITUTE CAPITAL FOR LABOR AND WORKERS SUBSTITUTE BENEFITS FOR AFTERTAX
WAGES

THE PERMANENT UNEMPLOYMENT CREATED IN THIS WAY CAN BE AVOIDED ONLY IF
BENEFITS ARE TIED TO HAVING A JOB FOR EXAMPLE AN EARNED INCOME TAX CREDIT
OR WAGE SUBSIDY OR TO BEING OUTSIDE THE LABOR FORCE FOR EXAMPLE SOCIAL
SECURITY'S SPOUSAL BENEFIT OF COURSE BENEFITS CONDITIONED ON NOT WORKING
CAUSE MORE UNEMPLOYMENT THAN BENEFITS AVAILABLE WHETHER OR NOT ONE WORKS
BUT ANY BENEFITS EVEN EDUCATION AND TRAINING SCHEMES OR WORKFARE 
THAT ARE NOT TIED TO CURRENT EMPLOYMENT MUST CONTRIBUTE TO HIGHER
UNEMPLOYMENT THAN WOULD OTHERWISE OCCUR

THE PROBLEM FIRST APPEARED IN THE 1920S AFTER BRITAIN INSTITUTED THE DOLE
OR UNEMPLOYMENT BENEFIT PRICES FELL AFTER A TREMENDOUS WARTIME INFLATION
WHEN THE POUND WAS RETURNED TO ITS PREWAR GOLD VALUE BUT THE DOLE WHICH
WAS FIXED IN NOMINAL TERMS STOPPED MONEY WAGES FROM ADJUSTING EVEN THOUGH
THEIR BUYING POWER KEPT RISING AS PRICES FELL FOR THE FIRST TIME BRITAIN
SUFFERED PERMANENT AND HIGH UNEMPLOYMENT

KEYNES'S POLICY OF DEFICIT SPENDING FINANCED BY MONEY CREATION 
ACCOMPANIED IF NECESSARY BY CURRENCY DEVALUATION COULD REDUCE PERMANENT
UNEMPLOYMENT TO THE EXTENT THAT IT RAISED PRICES AND MONEY INCOMES WHILE
THE DOLE REMAINED FIXED IT WAS A ROUNDABOUT WAY OF CUTTING THE REAL VALUE
OF THE DOLE

BUT SINCE THE 1960S MOST SOCIAL BENEFITS HAVE BEEN INDEXED TO THE GENERAL
PRICE LEVEL SOME LIKE UNEMPLOYMENT BENEFITS ARE EVEN FIXED AS A
PERCENTAGE OF WAGES OR LIKE MEDICAL CARE PROVIDED IN KIND NO AMOUNT OF
INFLATION CAUSED BY KEYNESIAN DEMAND STIMULUS PACKAGES CAN PERMANENTLY
REDUCE UNEMPLOYMENT CAUSED BY SOCIAL BENEFITS THAT ARE INDEXED IN THIS WAY
TRYING TO DO SO MERELY RESULTS IN STAGFLATION SIMULTANEOUS HIGH INFLATION
AND HIGH UNEMPLOYMENT THAT PAINFUL LESSON OF THE 1970S SEEMS TO BE LOST ON
PRESIDENT CLINTON'S ADVISERS

CURIOUSLY ENOUGH PRESIDENT CLINTON HIMSELF UNCONSCIOUSLY DREW THE
CONNECTION BETWEEN UNEMPLOYMENT AND SOCIAL BENEFITS RECENTLY AT A NEWS
CONFERENCE APRIL 14 IN WHICH HE ADVOCATED EXPANDED UNEMPLOYMENT BENEFITS
AND UNIVERSAL MEDICAL COVERAGE THE PRESIDENT SAID ALL THE EUROPEAN
COUNTRIES HAVE HIGHER UNEMPLOYMENT RATES THAN WE DO BUT ALSO STRONGER
SUPPORT SYSTEMS FOR THE UNEMPLOYED THAT'S THE POINT ALL THE EUROPEAN
COUNTRIES HAVE HIGHER UNEMPLOYMENT RATES BECAUSE THEY HAVE STRONGER SUPPORT
SYSTEMS FOR THE UNEMPLOYED

UNTIL THE EARLY 1970S UNEMPLOYMENT IN THE CURRENT EC COUNTRIES AVERAGED
LESS THAN 3 LOWER THAN IN THE US AFTER THE TREMENDOUS INCREASE IN
BENEFITS AND MINIMUM WAGES IT IS NOW ABOUT 10 IT COULD BE CLAIMED THAT
CAUSALITY RUNS IN BOTH DIRECTIONS BUT WHEN THE TWO ARE NOT SIMULTANEOUS
THE RISE IN TRANSFER PAYMENTS LEADS THE RISE IN UNEMPLOYMENT IN THE EC
SINCE 1965 THERE HAS BEEN A 96 CORRELATION BETWEEN CURRENT UNEMPLOYMENT
AND TRANSFER PAYMENTS ONE YEAR EARLIER WITH EACH PERCENTAGE POINT OF
TRANSFER PAYMENTS AS A SHARE OF THE ECONOMY THE COST OF EXTRA UNEMPLOYMENT
HAS RISEN STEADILY FROM ABOUT 07 TO 19 PERCENTAGE POINTS

AT A PRESS CONFERENCE IN TOKYO LAST WEEK PRESIDENT CLINTON APPEARED TO
CLAIM THAT THE FORMER WEST GERMANY IS AN EXCEPTION THE UNEMPLOYMENT RATE
THERE HE SAID IS LOWER THAN ALL THE OTHER EUROPEAN COUNTRIES AND YET
THEY HAVE VERY HIGH MANDATORY LABOR COSTS

ACTUALLY WEST GERMANY IS AN EXCELLENT EXAMPLE OF THE LINK BETWEEN SOCIAL
BENEFITS AND UNEMPLOYMENT TRANSFER PAYMENTS WERE EXPANDED FROM 12 OF GROSS
DOMESTIC PRODUCT IN 1964 TO 177 IN 1982 AND UNEMPLOYMENT ROSE FROM 03
IN 1965 TO 77 IN 1983 USING THE STANDARDIZED OECD MEASURE BUT UNDER
FISCAL CONSOLIDATION TRANSFER PAYMENTS WERE STEADILY CUT BACK TO 149 OF
GDP IN 1991 AND WEST GERMAN UNEMPLOYMENT WAS DOWN TO 48 IN 1992

MOST PEOPLE ACCEPT THE NEED FOR A SOCIAL SAFETY NET IN THE US BUT THOSE
WHO FAVOR TURNING IT INTO A EUROPEAN WELFARE STATE MUST ACKNOWLEDGE THAT
THIS NECESSARILY MEANS A EUROPEANSIZE UNEMPLOYMENT RATE IN FACT THE
PROCESS IS ALREADY WELL UNDER WAY FROM 1965 TO 1992 US TRANSFER PAYMENTS
NEARLY TRIPLED TO MORE THAN 14 OF GDP AND UNEMPLOYMENT HAS RISEN ON
AVERAGE BY MORE THAN HALF A PERCENTAGE POINT FOR EACH ONEPERCENTAGEPOINT
RISE IN TRANSFER PAYMENTS AS A SHARE OF GDP THE TRADEOFF IN THE US IS
NOT YET AS BAD AS THAT IN THE EC BECAUSE UNEMPLOYMENT BENEFIT FORMULAS ARE
NOT AS LAVISH AND THE OVERALL TRANSFER BURDEN IS STILL LOWER

BUT UNDER CURRENT LAW FEDERAL TRANSFER PAYMENTS ALONE ARE FORECAST TO RISE
BY AN ADDITIONAL THREE PERCENTAGE POINTS OF GDP OVER THE NEXT 10 YEARS
PRESIDENT CLINTON'S BUDGET PROPOSALS LARGELY ACCEPT THIS INCREASE AND IT
APPEARS HIS FORTHCOMING PLAN FOR UNIVERSAL MEDICAL COVERAGE WOULD FURTHER
RAISE THIS BURDEN BY AT LEAST 15 PERCENTAGE POINTS OF GDP IF THE PAST
RELATIONSHIP CONTINUES THIS WOULD RAISE THE AVERAGE US UNEMPLOYMENT RATE
TO MORE THAN 8 ALMOST AS HIGH AS IN THE EC

WE ARE FACED WITH A TRADEOFF BETWEEN ASSURING PEOPLE THE DIGNITY OF AN
ADEQUATE INCOME AND THE DIGNITY OF WORKING FOR A LIVING THIS CHOICE RAISES
COMPLEX SOCIAL MORAL AND POLITICAL ISSUES WHICH GO FAR BEYOND THE ECONOMIC
ANALYSIS PRESENTED HERE IT'S CONCEIVABLE THAT A MAJORITY OF VOTERS MIGHT
CONSCIOUSLY CHOOSE A HIGHER UNEMPLOYMENT RATE AS THE UNAVOIDABLE COST OF
SOCIAL PROGRAMS BUT SUCH A DISCUSSION CANNOT EVEN BEGIN UNTIL WE
ACKNOWLEDGE THAT THIS IS PRECISELY WHAT PRESIDENT CLINTON PROPOSES

MR MUELLER IS A PRINCIPAL OF LBMC INC A FORECASTING FIRM IN ARLINGTON
VA 9307130164 930713 BARNETT BANKS INC POSTS RECORD PROFIT FOR 2ND
QUARTER  BY HELENE COOPER STAFF REPORTER OF THE WALL STREET
JOURNAL

BARNETT BANKS INC POSTED A RECORD 1042 MILLION IN SECONDQUARTER
EARNINGS UP 66 FROM THE YEAR EARLIER THE BANKHOLDING COMPANY CITED
CONTINUED IMPROVEMENT IN CREDIT QUALITY AND EXPENSE CONTROL

PERSHARE EARNINGS CLIMBED TO 101 FROM 60 CENTS THE YEAR EARLIER FAR
EXCEEDING ANALYSTS' ESTIMATES

FOR THE SIX MONTHS BARNETT EARNED 1965 MILLION OR 191 A SHARE UP 52
FROM 1301 MILLION OR 126 A SHARE A YEAR EARLIER

YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BARNETT
COMMON CLOSED AT 4850 UP 50 CENTS ON VOLUME OF 319600 SHARES

BARNETT SAID A 9 DECLINE IN NONINTEREST EXPENSE PRODUCED BY A CONCERTED
COSTCUTTING STRATEGY WAS THE PRIMARY FACTOR IN THE IMPROVED EARNINGS THE
COMPANY WHICH IN MARCH COMPLETED THE CONVERSION OF THE OFFICES OF ITS
RECENT ACQUISITION FIRST FLORIDA BANKS INC CLOSED 98 BRANCHES IN LATE
MARCH A BARNETT SPOKESMAN SAID

BARNETT USUALLY PLAGUED BY HIGH EXPENSES IS NOW MAKING GOOD ON
MANAGEMENT'S PROMISE TO MAKE SUBSTANTIAL CUTS IN EXPENSES THIS YEAR SAID
FELICE GELMAN AN ANALYST WITH DILLON READ & CO THE MERGER HAS HELPED THEM
A LOT SHE SAID IN ADDITION SHE SAID THE COMPANY CUT OPERATING EXPENSES
SUBSTANTIALLY AND REDUCED THE COSTS OF PROBLEM LOANS

THE COMPANY BASED IN JACKSONVILLE FLA REDUCED NONPERFORMING ASSETS BY
101 MILLION DURING THE QUARTER TO THE LOWEST LEVEL IN THREE YEARS

A BIG REASON FOR THE CHANGE IS THE IMPROVING REALESTATE MARKET WHICH LED
TO A SHARPLY IMPROVED CREDIT QUALITY ANALYSTS SAID THERE ARE FEWER
PROBLEM LOANS OUT THERE THE BARNETT SPOKESMAN SAID AND WE'VE WORKED VERY
AGGRESSIVELY TO SELL OFF THE FORECLOSED PROPERTIES TO RESOLVE OUR PROBLEM
LOANS

THE COMMERCIAL REALESTATE MARKET HAS BOTTOMED OUT HE SAID ADDING THAT
BARNETT IS NOW FINALLY SEEING TRANSACTIONS IT MAY WANT TO FINANCE

SEVERAL ANALYSTS SAID THEY WILL BE INCREASING THEIR EARNINGS ESTIMATES FOR
THE YEAR 9307130163 930713 TECHNOLOGY IBM EXPECTED TO ENTER MART 
FOR ATM GEAR  BY MICHAEL W MILLER STAFF REPORTER OF THE WALL
STREET JOURNAL

SEEKING A BIGGER ROLE AS A SUPPLIER FOR THE INFORMATION HIGHWAYS OF THE
FUTURE INTERNATIONAL BUSINESS MACHINES CORP IS EXPECTED TO UNVEIL TODAY
PLANS FOR A BIG PUSH INTO THE GROWING MARKET FOR MULTIMEDIA DATA NETWORK
GEAR

INDUSTRY CONSULTANTS SAY IBM WILL ANNOUNCE A MAJOR STRATEGY FOR A TECHNOLOGY
KNOWN AS ATM FOR ASYNCHRONOUS TRANSFER MODE A NEW TECHNIQUE FOR
SWITCHING AND TRANSMITTING DATA THE STRATEGY WILL INVOLVE GOING HEAD TO
HEAD AGAINST GIANTS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND NORTHERN
TELECOM LTD IN THE CRUCIAL MARKET FOR PHONE COMPANIES' SWITCHING EQUIPMENT
CONSULTANTS SAY

THE WORLD'S TOP TELECOMMUNICATIONS PLAYERS ARE RUSHING INTO THE ATM MARKET
BECAUSE THEY BELIEVE IT OFFERS A BETTER SYSTEM FOR HANDLING VIDEO VOICE
AND DATA THAN TODAY'S SYNCHRONOUS NETWORKS SOME COMPANIES AND MARKET
RESEARCHERS BELIEVE THE ATM MARKET WILL REACH SEVERAL BILLIONS OF DOLLARS BY
THE END OF THE DECADE

IBM'S MOVE COMES AS THE TOP MANAGEMENT TEAM OF ITS NEW CHAIRMAN LOUIS V
GERSTNER JR IS TAKING A CLOSE LOOK AT DATA NETWORKS AS AN IMPORTANT
STRATEGY FOR TURNING AROUND THE TROUBLED COMPUTER GIANT WHEN MR GERSTNER
LAST MONTH APPOINTED M BERNARD PUCKETT TO BE HIS TOP STRATEGY AIDE ONE OF
MR PUCKETT'S FIRST MOVES WAS TO TAP VETERAN IBM INFORMATIONHIGHWAY
ARCHITECT ALAN BARATZ AS DIRECTOR OF NETWORKING STRATEGY

CONSULTANTS EXPECT IBM TO DISCLOSE ITS PLANS TO OFFER A WIDE RANGE OF ATM
COMPONENTS AND SWITCHES STARTING IN THE FIRST HALF OF 1994 ACCORDING TO A
REPORT BY THE YANKEE GROUP A BOSTON CONSULTING FIRM THE IBM PRODUCTS WILL
INCLUDE COMPONENTS MADE BY CHIPCOM CORP A SOUTHBOROUGH MASS
TELECOMMUNICATIONS SUPPLIER

INDUSTRY OFFICIALS CALLED IBM'S DECISION TO COMPETE IN THE CUTTHROAT
PHONECOMPANY SWITCHING MARKET AN AUDACIOUS MOVE IT WOULD BE A VERY
SIGNIFICANT STRATEGIC ANNOUNCEMENT SAID DIXON DOLL A VENTURE CAPITALIST
WHO WORKS CLOSELY WITH IBM'S BIG NETWORKS DIVISION

IBM FULLY UNDERSTANDS THAT IT IS THE NEW KID ON THE BLOCK THAT THIS
MARKET WILL BE HARDER TO CRACK THE YANKEE GROUP REPORT SAID BUT IT
SUGGESTED THAT THE POWERFUL NEW ATM TECHNOLOGY MAY HELP IBM DETHRONE THE
TRADITIONAL SWITCHING LEADERS JUST AS PERSONAL COMPUTERS DISPLACED IBM'S
OWN MAINFRAME BUSINESS 9307130162 930713 INTERNATIONAL BRIEF WHARF
HOLDINGS LTD BID TO BUY HARBOUR CENTRE FOILED BY SHAREHOLDER VOTE

WHARF HOLDINGS LTD'S BID TO ACQUIRE HARBOUR CENTRE DEVELOPMENT LTD
FAILED WHEN A LARGE BLOCK OF HARBOUR CENTRE'S SHAREHOLDERS VOTED AGAINST THE
PLAN

WHARF'S DEFEAT FOLLOWS CRITICISM IN THE HONG KONG FINANCIAL COMMUNITY THAT
WHARF WAS TRYING TO BUY THE ASSETS OF THE HOTEL COMPANY AT A BARGAIN EVEN
AFTER RAISING ITS OFFER TO 1050 HONG KONG DOLLARS A SHARE US135 FROM
THE HK9 IT ORIGINALLY PROPOSED ON APRIL 23 WHILE WHARF'S FINANCIAL
ADVISER SCHRODERS ASIA LTD HAS ESTIMATED THAT HARBOUR CENTRE'S ASSETS
HAVE A VALUE OF HK1012 A SHARE OTHER INDEPENDENT VALUATIONS HAVE RANGED
AS HIGH AS HK1455 A SHARE

WHARF HAD RAISED HK12 BILLION TO FUND THE PURCHASE THROUGH THE PRIVATE
PLACEMENT OF 65 MILLION OF ITS SHARES THAT MONEY WILL NOW BE USED FOR
WORKING CAPITAL THE COMPANY SAID 9307130161 930713 US SAYS POSITION 
UNCHANGED ON NAFTA ENVIRONMENTAL PLAN

WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US HASN'T
BACKED DOWN FROM A PROPOSAL THAT WOULD INCLUDE THE USE OF TRADE SANCTIONS TO
ENFORCE ENVIRONMENTAL MEASURES UNDER THE NORTH AMERICAN FREE TRADE
AGREEMENT

HE LABELED AS INACCURATE A WALL STREET JOURNAL REPORT YESTERDAY THAT THE
US HAS DROPPED A PROPOSAL FOR TOUGH COMMERCIAL SANCTIONS ENFORCED BY A
TRILATERAL COMMISSION ON THE ENVIRONMENT MR KANTOR SAID WE DIDN'T
CHANGE OUR POSITION ON DISPUTE RESOLUTION IN TALKS WITH CANADA AND MEXICO
ON THE TRADE PACT LATE LAST WEEK

THE US POSITION CALLS FOR TRADE SANCTIONS BUT ONLY AFTER AN EXHAUSTIVE
SERIES OF PROCEDURAL SAFEGUARDS IN ANY EVENT US NEGOTIATORS SAID THE
COMMISSION WOULDN'T BE ABLE IMPOSE THE SANCTIONS ONLY THE THREE NATIONS
WOULD

AS A SIDE AGREEMENT TO THE NORTH AMERICAN TRADE PACT THE US IS PROPOSING
A THREENATION COMMISSION ON THE ENVIRONMENT WHICH WOULD INVESTIGATE
WHETHER ANY OF THE THREE NAFTA COUNTRIES PERSISTENTLY FAILS TO ENFORCE THEIR
ENVIRONMENTAL LAWS THE SIDE AGREEMENT ALSO WOULD ALLOW FOR CREATION OF
DISPUTERESOLUTION PANELS AND THE THREAT BY NAFTA NATIONS OF TRADE
SANCTIONS TO ENFORCE THE PANELS' FINDINGS

WHILE US NEGOTIATORS SAY THEY WOULD USE SANCTIONS ONLY AS A LAST RESORT
CANADA AND MEXICO HAVE REFUSED TO GO ALONG THEY OBJECT TO USING TRADE
SANCTIONS TO ENFORCEMENT DISPUTES OUTSIDE THE TRADE ARENA INSTEAD THEY
SAY THE OFFENDING COUNTRIES OR FIRMS SHOULD BE LIABLE FOR FINES

THE US HOWEVER HAS REGULARLY ARGUED FOR SANCTION AUTHORITY AS A WAY OF
ENSURING STRICTER ENVIRONMENTAL ENFORCEMENT THE CLINTON ADMINISTRATION ALSO
REALIZES THAT CONGRESS WOULD BE FAR MORE LIKELY TO VOTE AGAINST THE TRADE
ACCORD IF THE US GIVES UP ITS SANCTION THREAT 9307130160 930713
INTERNATIONAL BRIEF BAA PLC BRITISH FIRM IS DISCUSSING US AIRPORT
MANAGEMENT

BRITISH AIRPORT OPERATOR BAA PLC SAID IT IS INVOLVED IN NUMEROUS DISCUSSIONS
IN THE US ABOUT THE POSSIBILITY OF TAKING OVER THE MANAGEMENT OF AIRPORT
TERMINALS

WE'RE TALKING TO A LOT OF PEOPLE BUT THERE'S NOTHING ON THE TABLE AT THE
MOMENT A SPOKESWOMAN SAID

BAA WHICH OWNS AND OPERATES SEVEN BRITISH AIRPORTS INCLUDING LONDON'S
HEATHROW ALREADY HOLDS THE CONTRACT TO MANAGE RETAIL OPERATIONS AT A
RECENTLY OPENED TERMINAL IN PITTSBURGH

WE HAVE BEEN LOOKING FOR FURTHER PITTSBURGHSTYLE OPPORTUNITIES IN THE
STATES THE SPOKESWOMAN SAID REFERRING TO RETAILMANAGEMENT CONTRACTS
BUT WE'VE ALSO BEEN LOOKING FOR BIGGER THINGS THAN THAT SHE SAID SUCH AS
CONTRACTING TO RUN ALL ASPECTS OF AIRPORT TERMINALS

THE BAA SPOKESWOMAN DENIED A REPORT IN YESTERDAY'S INDEPENDENT NEWSPAPER
THAT THE COMPANY IS DISCUSSING TAKING AN EQUITY STAKE IN CHICAGO'S O'HARE
AIRPORT

THE SPOKESWOMAN SAID A GROUP OF BAA EXECUTIVES RECENTLY RETURNED FROM A
FACTFINDING MISSION IN CHINA SHE SAID THE TEAM VISITED TIANJIN NEAR
BEIJING AMONG OTHER CITIES AND SPOKE TO AIRPORT OFFICIALS BUT DIDN'T TOUR
ANY SPECIFIC AIRPORTS 9307130159 930713 BUSINESS BRIEF A SCHULMAN
INC CONCERN SEES PROFIT FOR YEAR FALLING BELOW FISCAL 1992 NET

A SCHULMAN INC CITING THE EUROPEAN RECESSION AND POOR PLASTIC PRICES
SAID NET INCOME FOR THE FISCAL YEAR ENDING AUG 31 WILL FALL BELOW THE 438
MILLION OR 148 A SHARE IT EARNED IN FISCAL 1992

DESPITE STRONG DEMAND FOR OUR MANUFACTURED PRODUCTS AND A SOLID BACKLOG
PRIOR TO THE TRADITIONAL EUROPEAN VACATION SCHEDULE THE PRICES OF PLASTIC
RESINS REMAIN LOW BY HISTORICAL STANDARDS MAKING IT DIFFICULT TO ACHIEVE A
SATISFACTORY LEVEL OF PROFITABILITY TERRY L HAINES PRESIDENT AND CHIEF
EXECUTIVE OFFICER SAID IN A STATEMENT

IN THE NINE MONTHS ENDED MAY 31 AKRON OHIOBASED SCHULMAN EARNED 273
MILLION OR 91 CENTS A SHARE COMPARED WITH 31 MILLION OR 105 A SHARE
IN THE YEAREARLIER PERIOD SALES FELL 4 TO 5329 MILLION FROM 5546
MILLION FOR THE QUARTER ENDED MAY 31 SCHULMAN REPORTED NET OF 104
MILLION OR 34 CENTS A SHARE COMPARED WITH EARNINGS OF 119 MILLION OR 40
CENTS A SHARE IN THE YEARAGO QUARTER

SCHULMAN IS A SUPPLIER OF PLASTIC COMPOUNDS AND RESINS IN LATE
OVERTHECOUNTER TRADING ITS SHARES WERE QUOTED AT 2775 UP 125 CENTS
9307130158 930713 TECHNOLOGY BRIEF IMMUNOGEN INC TALKS ARE HELD ON
MARKETING OF ONCOLYSIN B IN EUROPE

IMMUNOGEN INC SAID IT IS IN DISCUSSIONS WITH POTENTIAL NEW PARTNERS TO
DEVELOP AND MARKET ONCOLYSIN B A CANCERTREATMENT DRUG IN EUROPE

THE DISCUSSIONS FOLLOW A DECISION BY ROUSSEL UCLAF A FRENCH PHARMACEUTICAL
CONCERN CONTROLLED BY GERMANY'S HOECHST AG TO RELINQUISH MARKETING RIGHTS
IT PURCHASED FOR THE DRUG IN 1990 ROUSSEL UCLAF'S DECISION TO WITHDRAW
FROM THE COLLABORATION WAS MADE WITH RELUCTANCE BASED ON NEWLY REVISED
RESEARCH PRIORITIES AT ROUSSEL SAID MITCHEL SAYARE CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF IMMUNOGEN A BIOPHARMACEUTICAL COMPANY BASED IN
CAMBRIDGE MASS

ONCOLYSIN B IMMUNOGEN'S LEAD PRODUCT THAT TREATS BCELL LYMPHOMA IS IN
PHASE III CLINICAL TRIALS IN THE US IN ORDER TO SECURE MARKETING APPROVAL
FROM THE FOOD AND DRUG ADMINISTRATION 9307130157 930713 BUSINESS BRIEF 
ITT CORP COMPANY IS STUDYING PLAN TO SCALE BACK SUPPORT STAFF

ITT CORP SAID IT IS STUDYING A PLAN TO BOOST EFFICIENCY AND REDUCE ITS
SUPPORT STAFF MOVES THAT COULD SAVE ABOUT 90 MILLION OR 50 CENTS A SHARE
AFTER TAXES STARTING IN 1994

THE NEW YORK INDUSTRIAL HOTEL AND FINANCIAL SERVICES COMPANY SAID AN
EFFICIENCY STUDY IS BEING CARRIED OUT BY MANAGEMENT CONSULTANTS MCKINSEY &
CO TO IDENTIFY WAYS OUR STAFF CAN DO THEIR JOBS MORE EFFICIENTLY AN ITT
SPOKESMAN SAID SUPPORT STAFF POSITIONS BEING SCRUTINIZED AS PART OF THE
STUDY NUMBER ABOUT 4000 AND INCLUDE THOSE IN EACH OF ITT'S BUSINESSES

ALTHOUGH THE COMPANY HAS NOT SET SPECIFIC GOALS FOR JOB CUTS PEOPLE CLOSE
TO THE COMPANY ESTIMATE THAT SEVERAL HUNDRED EMPLOYEES COULD BE LET GO AT
ITT HARTFORD AND ITT'S EIGHT OTHER BUSINESSES I THINK SAVINGS OF 120
MILLION TO 150 MILLION ARE MUCH MORE REALISTIC A PERSON CLOSE TO THE
COMPANY ADDED

ITT SAID EMPLOYEES AFFECTED BY THE MCKINSEY STUDY INCLUDE THOSE IN LEGAL
HUMAN RESOURCES AND CORPORATE FUNCTIONS AS WELL AS THE OFFICE OF THE
CONTROLLER THE STUDY WILL BE COMPLETED BY THE END OF SEPTEMBER THE
SPOKESMAN SAID 9307130156 930713 TECHNOLOGY APPLE TRIMS MORE PC PRICES
IN THE US  BY JIM CARLTON STAFF REPORTER OF THE WALL STREET
JOURNAL

APPLE COMPUTER INC SLASHED US PRICES BY AS MUCH AS ONETHIRD ON MANY OF
ITS MOST POPULAR PERSONAL COMPUTERS IN ANOTHER BID TO BOOST MARKET SHARE

THE CUTS COME JUST A MONTH AFTER THE CUPERTINO CALIF PC MAKER BEGAN
OFFERING REBATES AND PRICE CUTS ON MIDPRICED MACINTOSH MACHINES APPLE
WHOSE EASYTOUSE MACINTOSH MACHINES HAVE HISTORICALLY COMMANDED PRICE
PREMIUMS OVER OTHER TYPES OF PCS HAS RECENTLY BEEN FORCED INTO MORE
AGGRESSIVE PRICE CUTS AS RIVALS HIT THE MARKET WITH INEXPENSIVE MACHINES
THAT APPROACH MACINTOSH'S EASE OF USE

APPLE'S LATEST ROUND OF PRICE REDUCTIONS CUT DEEP ACROSS ITS TOPEND AND
LOWESTEND PRODUCT LINES WITH THESE ACTIONS WE ARE MAKING SOME OF OUR
MOST POPULAR PRODUCTS MORE COMPETITIVE BOB PUETTE PRESIDENT OF APPLE USA
SAID IN A STATEMENT

APPLE'S MOVE REPRESENTS SOMETHING OF A GAMBLE ANALYSTS SAY BECAUSE NO ONE
KNOWS WHETHER THE LOWER PRICES WILL FUEL ENOUGH DEMAND TO OFFSET A FURTHER
SQUEEZE ON ITS PROFIT MARGINS IF THEY DON'T APPLE PROBABLY WILL HAVE TO
CUT COSTS EVEN DEEPER THAN IT ALREADY HAS TO OFFSET MARGINS THAT HAVE BEEN
SLIDING FOR THREE YEARS AMID INDUSTRY PRICE WARS THE PROFIT MARGINS ARE
THE CRITICAL ISSUE THAT APPLE FACES SAID EUGENE G GLAZER TECHNOLOGY
ANALYST FOR DEAN WITTER REYNOLDS

LAST WEEK APPLE ANNOUNCED IT WOULD DISMISS 16 OF ITS WORK FORCE SHRINK
SALARIES OF SOME EXECUTIVES AND FREEZE OTHER SALARIES AS PART OF A
COSTCUTTING EFFORT BY NEW CHIEF EXECUTIVE OFFICER MICHAEL SPINDLER WHO
RECENTLY SUCCEEDED JOHN SCULLEY

YET GIVEN THE FIERCE COMPETITION APPLE HAD LITTLE CHOICE BUT TO TRIM
PRICES SAID ANDREW NEFF MANAGING DIRECTOR OF BEAR STEARNS & CO THEIR
GOAL IS TO MAINTAIN AND INCREASE SHARE HE SAID

THOUGH WALL STREET WAS GENERALLY NEUTRAL ON THE PRICE REDUCTIONS APPLE'S
STOCK WAS BOOSTED ALONG WITH OTHER TECHNOLOGY STOCKS WHEN INTEL CORP
OFFICIALS INDICATED YESTERDAY PC SALES WERE STRONGER THAN MANY ANALYSTS
THOUGHT APPLE SHARES ROSE 125 APIECE TO 38 YESTERDAY IN NATIONAL
OVERTHECOUNTER TRADING

APPLE HAS A TOUGH TASK IN TRYING TO GAIN MARKET SHARE GIVEN COMPETITION
FROM INTERNATIONAL BUSINESS MACHINES CORPCOMPATIBLE COMPUTERS MADE WITH
INTEL COMPUTER CHIPS AND MICROSOFT CORP SOFTWARE APPLE'S WORLDWIDE PC
MARKET SHARE HAS BEEN STUCK AT ABOUT 12 BECAUSE THE IBMCOMPATIBLE
COMPUTERS THAT DOMINATE THE REST OF THE MARKET INCREASINGLY LOOK AND ACT
LIKE APPLE'S EASYTOUSE MACHINES

BECAUSE APPLE HAD CHARGED A PREMIUM FOR ITS COMPUTERS COSTCUTTING FROM THE
COMPETITION HAS PREVENTED IT FROM GAINING MARKET SHARE ANALYSTS SAY APPLE
ALSO HAS THE DISADVANTAGE OF BEING CONCENTRATED IN THE MARKET FOR CONSUMERS
SMALL BUSINESS AND EDUCATION WHILE MICROSOFT'S WINDOWS SOFTWARE HAS BECOME
SOMETHING OF A STANDARD FOR BIG BUSINESS USERS

IT'S AWFULLY DIFFICULT TO WIN BIG CHUNKS OF SHARE FROM ENTRENCHED WINDOWS
SAID BRUCE M LUPATKIN MANAGING DIRECTOR OF TECHNOLOGY RESEARCH FOR
HAMBRECHT & QUIST IN SAN FRANCISCO

SUGGESTED RETAIL PRICES ON THE TOPEND MACINTOSH QUADRA 950 SYSTEMS WERE CUT
AS MUCH AS 29 WHILE PRICES FOR THE APPLE WORKGROUP SERVER 95 COMPUTERS
WERE REDUCED AS MUCH AS 20 AS WELL AS BEING AN ATTEMPT TO BETTER COMPETE
IN THE BIG CORPORATE MARKET THE CUTS ARE AN EFFORT TO MAKE WAY FOR EXPECTED
NEW HIGHEND PRODUCT INTRODUCTIONS IN COMING MONTHS

APPLE ALSO REDUCED PRICES 7 TO 34 ON ITS FAMILY OF POWERBOOK NOTEBOOK
COMPUTERS THOUGH THE VAST MAJORITY OF POWERBOOK SALES GO TO MACINTOSH
USERS APPLE IS PUSHING TO EXPAND SALES TO NEW CUSTOMERS AND FACES TOUGH
COMPETITION FROM IBM'S NEW THINKPAD NOTEBOOK

IN ADDITION APPLE HOPES TO CASH IN ON THE BACKTOSCHOOL BUYING SEASON BY
OFFERING REBATES OF 100 TO 200 ON MACINTOSH PERFORMA PERSONAL COMPUTERS
AND SELECT PRINTERS THROUGH SEPT 20 9307130155 930713 INTERNATIONAL 
YELTSIN'S HOMETOWN ALLIES HELP HIM WIN APPROVAL OF DRAFT FOR CONSTITUTION
  BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL

YEKATERINBURG RUSSIA PRESIDENT BORIS YELTSIN WITH AN ASSIST FROM HIS
HOMETOWN HERE WON AN IMPORTANT VICTORY WHEN THE CONSTITUTIONAL CONVENTION
APPROVED THE FINAL DRAFT OF WHAT COULD BECOME RUSSIA'S NEW CONSTITUTION

TWO WEEKS AGO THE CONSTITUTIONAL CONVENTION IN MOSCOW SEEMED TO BE NEARING
A DEAD END RUSSIA'S 20 REPUBLICS WERE FIGHTING TO RETAIN IN THE LAW THE
FARREACHING POLITICAL AND ECONOMIC POWERS THEY NOW ENJOY MANY OF THE
FEDERATION'S REMAINING 68 REGIONS WERE BALKING AT HAVING SECONDCLASS
STATUS

THEN ON JULY 1 WITHOUT WARNING LEGISLATORS HERE IN THE CAPITAL OF THE
SVERDLOVSK REGION TOOK A BOLD GAMBLE THEY DECLARED THAT THEIR TERRITORY
WHICH HAS NO SPECIAL ETHNIC IDENTIFICATION WAS TO BECOME THE URALS
REPUBLIC AND THEY DEMANDED ADDITIONAL POWERS WITHIN DAYS TWO MORE
RUSSIAN REGIONS FOLLOWED SUIT AND OTHERS PLEDGED TO DO THE SAME

MR YELTSIN AND HIS AIDES CRITICIZED THE MOVES IN PUBLIC BUT THE REGIONAL
MUSCLEFLEXING APPEARS TO HAVE PROVIDED THE URGENCY THE PRESIDENT NEEDED TO
PROD THE CONVENTION TO SIGN OFF ON A BASIC LAW TO REPLACE THE COUNTRY'S
SOVIETERA CONSTITUTION AS ONCEDORMANT REGIONS PILED ON THE DEMANDS FOR
MORE PRIVILEGES MR YELTSIN WAS ABLE TO WIN APPROVAL FROM RECALCITRANT
DELEGATES OF THE AUTONOMOUS REPUBLICS

OUR DECLARATION WAS A FORM OF POLITICAL SHOCK THERAPY TO BREAK THROUGH THE
LOGJAM IN MOSCOW AND TO HELP YELTSIN SAYS ANATOLI GREBENKIN CHAIRMAN OF
THE SVERDLOVSK PARLIAMENT BY CREATING A URALS REPUBLIC WE HAVE POSITIVELY
AFFECTED THE CONSTITUTIONAL PROCESS

IN A TRIUMPHANT SPEECH AT THE CONVENTION'S PLENARY SESSION YESTERDAY MR
YELTSIN SAID THE FINAL DRAFT OF THE CONSTITUTION TREATS EACH OF RUSSIA'S 88
TERRITORIES EQUALLY GONE APPARENTLY ARE MANY OF THE SPECIAL ECONOMIC
BENEFITS THAT THE FEDERATION'S 20 REPUBLICS HAVE ENJOYED BUT REPUBLICS
WOULD BE ALLOWED TO SIGN SEPARATE TREATIES WITH MOSCOW AND WRITE THEIR OWN
CONSTITUTIONS WHOSE LAWS COULD SUPERSEDE THOSE OF MOSCOW

THE DRAFT CONSTITUTION ALSO WOULD STRENGTHEN PRESIDENTIAL POWER AND
ELIMINATE THE CONGRESS OF PEOPLE'S DEPUTIES THE COUNTRY'S HIGHEST
PARLIAMENTARY BODY WHOSE MEMBERS HAVE FREQUENTLY BLOCKED MR YELTSIN'S
POLICIES THE DRAFT ALSO GIVES RUSSIANS THE RIGHT TO PRIVATE PROPERTY

RUSSIA IS STILL A LONG WAY FROM HAVING A NEW CONSTITUTION THE DRAFT
APPROVED MONDAY WILL BE SENT TO THE PARLIAMENTS OF RUSSIA'S 88 TERRITORIES
WHICH WILL SUGGEST FURTHER AMENDMENTS AND IT ISN'T CLEAR WHO WILL BE
EMPOWERED TO FORMALLY ADOPT THE DOCUMENT POSSIBILITIES INCLUDE A NATIONAL
REFERENDUM OR A SPECIAL ASSEMBLY

PLENTY COULD STILL GO WRONG A NEW ROUND OF DEMANDS FROM THE REPUBLICS COULD
SIDETRACK THE PROCESS MUCH AS MIKHAIL GORBACHEV'S UNION TREATY DISSOLVED
UNDER NATIONALIST PRESSURE TWO YEARS AGO NONETHELESS IN CONVENING A
CONSTITUTIONAL ASSEMBLY AND PRODUCING A DRAFT DOCUMENT MR YELTSIN HAS
SUCCEEDED WHERE MANY THOUGHT HE WOULD FAIL

WAS MR YELTSIN DESPITE STATEMENTS TO THE CONTRARY ACTUALLY BEHIND THE
SVERDLOVSK MOVE OFFICIALS HERE SAY IT'S INCONCEIVABLE THAT LOCAL
LEGISLATORS COULD HAVE ACTED WITHOUT AT LEAST THE PRESIDENT'S TACIT
APPROVAL MR YELTSIN WAS BORN IN A PROVINCIAL SVERDLOVSK VILLAGE AND CUT
HIS POLITICAL TEETH HERE HE SERVED AS THE CITY'S COMMUNIST PARTY SECRETARY
AND MANY LOCAL OFFICIALS WERE HIS PROTEGES

KNOWING OUR LEADERS I DOUBT VERY MUCH THAT THIS IS THEIR OWN INITIATIVE
SAYS ALEXANDER KOBERNICHENKO CHIEF AIDE TO THE MAYOR OF YEKATERINBURG
THEY FLY TO MOSCOW ALL THE TIME TO MEET WITH YELTSIN AND HIS AIDES

FOR NOW SVERDLOVSK WITH ITS POPULATION OF 47 MILLION PLANS TO STICK WITH
ITS PLANS TO BECOME A REPUBLIC WITHIN THE RUSSIAN FEDERATION OFFICIALS
ALREADY ARE ADOPTING THE FORMAL TRAPPINGS OF STATEHOOD EVEN AS THEY AWAIT A
RULING FROM RUSSIA'S PARLIAMENT ON THE LEGALITY OF THE MOVE EXPERTS ARE
DRAFTING A CONSTITUTION FOR THE NEW REPUBLIC AND LEGISLATORS HAVE BEGUN
SPORTING PINS DEPICTING A PROVISIONAL TRICOLOR FLAG

UNTIL A NEW BASIC LAW FOR RUSSIA IS IN PLACE THERE'S A CLEAR ECONOMIC
INCENTIVE TO STRIVE FOR REPUBLICAN STATUS SVERDLOVSK SENDS ABOUT 55 OF ITS
TAX REVENUE TO MOSCOW AND IS ALLOWED TO CONTROL ONLY ABOUT 5 OF ITS
ABUNDANT NATURAL RESOURCES AS A REPUBLIC THE TERRITORY WOULD STAND TO HAVE
MUCH GREATER CONTROL OVER BOTH THE NEARBY REPUBLIC OF BASHKORTOSTAN FOR
EXAMPLE REMITS JUST 10 OF ITS TAX REVENUES TO MOSCOW OFFICIALS IN
SVERDLOVSK SAY AND IS PERMITTED TO KEEP THE PROFITS FROM 20 OF THE OIL IT
SELLS 9307130154 930713 INTERNATIONAL SPLINTERING OF JAPAN'S LIBERAL
DEMOCRATIC PARTY LEAVES VOTERS PUZZLED BY CONFLICTING LOYALTIES  
BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL

OJIYA JAPAN TSUTOMU YAMAMOTO REPRESENTS A NEW POLITICAL PHENOMENON IN
JAPAN THE TORN AND PUZZLED VOTER

IN THIS SUNDAY'S NATIONAL ELECTION MR YAMAMOTO SAYS HE FEELS HE SHOULD
VOTE FOR YUKIO HOSHINO THE CONSERVATIVE LAWMAKER HE HAS LONG BACKED THE
PROBLEM IS MR YAMAMOTO IS ALSO A LOYAL SUPPORTER OF THE RULING LIBERAL
DEMOCRATIC PARTY AND REP HOSHINO HAS JUST DEFECTED FROM THE LDP TO JOIN A
SPLINTER GROUP

I'M NOT SURE I'M ABSOLUTELY COMFORTABLE WITH WHAT HE DID SAYS MR
YAMAMOTO 62 YEARS OLD AND A LONGTIME RESIDENT OF THIS CONSERVATIVE TOWN OF
43000 IN CENTRAL JAPAN IT'S SOMETHING I'LL HAVE TO THINK ABOUT BEFORE I
MAKE UP MY MIND

FOR YEARS JAPANESE HAVE BASED THEIR VOTING CHOICES ON LOYALTY NOT
IDEOLOGY SUCH FEALTY HAS BOUND COMMUNITIES TOGETHER AND HELPED KEEP THE LDP
IN POWER FOR NEARLY 40 YEARS TODAY THE PERSONAL NATURE OF POLITICS IS
CAUSING CONFUSION IN OJIYA AND TOWNS AND CITIES LIKE IT ACROSS THE NATION
LAST MONTH THE LDP SPLIT AND A NUMBER OF FORMER PARTY STALWARTS ARE RUNNING
AGAINST THE ESTABLISHMENT THE NEW RIVALRIES HAVE RENDERED THE OLD LOYALTIES
MEANINGLESS LEAVING VOTERS ADRIFT

CONSIDER THE PROBLEM FACING EMIKO HOSHINO A 53YEAROLD SAKE MERCHANT IN
THE NEARBY CITY OF NAGAOKA SHE CAN HARDLY CONTAIN HER EXCITEMENT WHEN SHE
LISTENS TO SPEECHES BY MAKIKO TANAKA AN INDEPENDENT MAKING HER FIRST RUN
FOR OFFICE MS HOSHINO SAYS SHE'S ENCHANTED BY MS TANAKA'S HUSKY VOICE AND
THE SINCERE WAY IN WHICH SHE TALKS ABOUT EFFECTING CHANGE

BUT MS HOSHINO QUICKLY LOWERS HER VOICE WHEN ASKED IF SHE WILL VOTE FOR MS
TANAKA I'D LIKE TO SAYS MS HOSHINO BUT SHE DOESN'T WANT TO UPSET THE
LOCAL SAKEMERCHANTS' COMMITTEE WHICH HAS TRADITIONALLY TOLD MEMBERS TO
VOTE LDP WHAT'S MORE THREE BUILDINGS DOWN FROM HER STORE IS A CAMPAIGN
OFFICE OF YUKIO HOSHINO THE LDP DEFECTOR MS HOSHINO ISN'T RELATED TO MR
HOSHINO HIS STAFF BUYS HER SAKE YET ANOTHER DEBT OF PATRONAGE TO BE
REPAID

I'M NOT TELLING ANYONE WHO I'M SUPPORTING SHE SAYS COOLING HERSELF WITH
A PAPER FAN ON A MUGGY AFTERNOON WHEN I GET TO THE BALLOT BOX IT'S
ENTIRELY UP TO ME WHOSE NAME I WRITE DOWN

OJIYA IS PART OF THE PARLIAMENTARY DISTRICT ONCE REPRESENTED BY THE
LEGENDARY KAKUEI TANAKA THE FORMER LDP KINGPIN AND PRIME MITER AS WELL AS
THE FATHER OF CANDIDATE MAKIKO TANAKA MR TANAKA PERFECTED THE FORMULA THAT
MADE THE LDP DOMINANT LAVISH PORKBARREL SPENDING ON THE DISTRICT IN
EXCHANGE FOR VOTERS' LOYALTY THE DISTRICT CRISSCROSSED WITH ROADS AND
RAILWAYS BUILT WITH PUBLIC MONEY HAS BENEFITED MORE THAN MOST AREAS

TODAY HOWEVER MR TANAKA'S FORMULA APPEARS TO HAVE BACKFIRED ON THE LDP

CONSIDER THE CANDIDACY OF MS TANAKA THE EXPRIME MINISTER'S DAUGHTER
YOSHIKAZU NAMBA A RESIDENT OF NEARBY NAGAOKA SAYS HE HAS ALWAYS VOTED FOR
THE LDP BECAUSE HE FELT GRATEFUL TO MR TANAKA FOR ALL THE BRIDGES AND
ROADS BUT THIS YEAR MR NAMBA SAYS HE MAY SHIFT HIS LOYALTY TO THE
INDEPENDENT MS TANAKA WHY BECAUSE HE STILL REVERES HER FATHER I'D VOTE
FOR HER IN A SECOND SAYS MR NAMBA

MASAO IKEDA A 65YEAROLD RETIREE FROM OJIYA HAS SWITCHED ALLEGIANCE TO
THE JAPAN NEW PARTY ANOTHER NEW GROUP AFTER SUPPORTING THE LDP FOR FOUR
DECADES HE SAYS HE IS FOLLOWING THE LEAD OF TADAO HIROI A LOCAL POLITICIAN
WHO BOLTED THE LDP FOR THE JNP THE CANDIDATE HELPED FIND MY SON A JOB
SAYS MR IKEDA

IT'S NO SURPRISE THAT THE LDP IS RUNNING SCARED DEFECTIONS LIKE MR IKEDA'S
THREATEN TO TURN THE PARTY OUT OF POWER FOR THE FIRST TIME SINCE 1955

SO LOCAL LDP CAMPAIGNERS ARE BARNSTORMING THE AREA TO REMIND PEOPLE OF
THEIR TIES TO INCUMBENTS BEFORE PEOPLE IN OUR SUPPORT GROUP CALLED ON
THEIR FRIENDS FAMILIES AND RELATIVES AND THEY ALL VOTED FOR US SAYS
TETSUSHI KOSUGI AN LDP CAMPAIGN WORKER TODAY THERE ARE COMPETING
OBLIGATIONS NOW WE CAN ONLY GET THE SUPPORTERS THEMSELVES TO VOTE HE
SAYS AND EVEN CORE LDP BACKERS ARE JUMPING SHIP

OF COURSE SOME VOTERS PLAN TO VOTE WITH THEIR HEADS NOT THEIR HEARTS
BEFORE I DIDN'T SEE ANY ALTERNATIVES SO I VOTED FOR THE LDP SAYS
MASASHIGE OSABE A 36YEAROLD FARMER SELLING TOMATOES BY THE ROADSIDE IN
NAGAOKA NOW I WON'T DECIDE UNTIL I GET TO THE POLLS

STILL MANY WHO WANT TO RIDE THE WINDS OF CHANGE SAY THEY FEEL STUCK IN THE
WEB OF OLD LOYALTIES

FOR YEARS TOSHIRO HIGUCHI WHO RUNS A SWEETS SHOP IN NAGAOKA HAS FELT
PRESSURED TO JOIN THE OTHER MERCHANTS IN HIS SHOPPING ARCADE IN SUPPORTING
THE LDP IT'S ALL THESE PERSONAL RELATIONSHIPS THAT DETERMINE WHO YOU VOTE
FOR HE SAYS HE SAYS HIS PEERS ARE TWISTING HIS ARM AGAIN THIS YEAR AND
HE BUTTONS HIS LIP WHEN ASKED WHO HE'S VOTING FOR 9307130153 930713
LENNAR TO MANAGE PORTFOLIO

MIAMI LENNAR CORP SAID IT WAS PICKED BY LW REAL ESTATE INVESTMENTS LP
A RECENTLY FORMED PARTNERSHIP BETWEEN WESTINGHOUSE ELECTRIC CORP AND AN
AFFILIATE OF LEHMAN BROTHERS TO MANAGE THE PARTNERSHIP'S PORTFOLIO OF
COMMERCIAL REALESTATE ASSETS LEHMAN IS A UNIT OF AMERICAN EXPRESS CO

LENNAR SAID THAT IN ADDITION TO ITS ASSET MANAGEMENT RESPONSIBILITIES IT IS
INVESTING APPROXIMATELY 29 MILLION TO ACQUIRE A 10 LIMITED PARTNERSHIP
INTEREST

LENNAR A HOMEBUILDER AND REALESTATE COMPANY SAID THE PARTNERSHIP
PURCHASED THE PORTFOLIO FOR APPROXIMATELY 11 BILLION WHICH REPRESENTED
ABOUT 52 OF ITS FACE VALUE 9307130152 930713 ANCHOR BANCORP INC
OFFERING

HEWLETT NY ANCHOR BANCORP INC SAID IT COMPLETED A 679 MILLION
COMMON STOCK OFFERING AND OTHER STEPS THAT ALLOW IT TO MEET FEDERAL CAPITAL
REQUIREMENTS

ANCHOR IS NOW FREE FROM ALL BUT THE NORMAL REGULATORY RESTRAINTS AND WILL
BE ABLE TO RESUME ITS GROWTH AND REALIZE THE FULL POTENTIAL OF ITS
FRANCHISE SAID JAMES M LARGE JR CHAIRMAN AND CHIEF EXECUTIVE OF THE
PARENT OF ANCHOR SAVINGS BANK THE BANK HAS DEPOSITS OF 56 BILLION AND
OPERATES IN FLORIDA AND IN METROPOLITAN NEW YORK AND NEW JERSEY
9307130151 930713 RP SCHERER ACQUISITION

TROY MICH RP SCHERER CORP SAID IT COMPLETED THE ACQUISITION OF
CLOSELY HELD PHARMAGEL SPA LODI ITALY AND PHARMAGEL SA NEUVIC FRANCE
FOR 30 MILLION ALL THE COMPANIES MAKE SOFT GELS FOR THE DRUG INDUSTRY
9307130150 930713 THEY'RE SORE BECAUSE THEY KNOW THE IRISH SPEAK ENGLISH
THE BEST  BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET
JOURNAL

LONDON THE QUEEN'S ENGLISH IS SOUNDING AN AWFUL LOT LIKE UNCLE SAM'S
THESE DAYS AND MANY PEOPLE HERE DON'T LIKE IT

LAST WEEK BRITISH BROADCASTING CORP ISSUED A REVISED STYLE GUIDE DESIGNED
TO RID THE AIRWAVES OF LINGUISTIC OFFENSES HIGH AMONG THEM AMERICANISMS

A TIMES OF LONDON EDITORIAL APPLAUDED THE MOVE AS CRUCIAL TO INTELLIGENT
DISCOURSE IN BRITAIN WHILE SHOUTS OF JOY WENT UP FROM THE QUEEN'S ENGLISH
SOCIETY A VOLUNTEER GROUP THAT LAST YEAR PETITIONED THE BBC TO HALT THE
AMERICANIZATION OF ENGLISH

AS ANNE SHELLEY THE SOCIETY'S CHAIRMAN I DO NOT WISH TO BE KNOWN AS
CHAIRWOMAN OR CHAIRPERSON TITLES BORN IN AMERICA PUTS IT WE DON'T SEE
ANY NEED TO IMPORT AMERICANISMS IN CASES WHERE WE HAVE PERFECTLY GOOD WORDS
OURSELVES

INDEED WHAT ADVANTAGE DOES TRAILER TRUCK HAVE OVER ARTICULATED LORRY
CUSTOM MADE OVER BESPOKE WHY END SENTENCES WITH PERIODS INSTEAD OF
FULL STOPS WHY THOUSANDS OF MILES FROM THE WATERGATE ATTACH THE SUFFIX
GATE TO EVERY BRITISH SCANDAL

KEEPERS OF THE LANGUAGE BLAME THE US MEDIA AND HOLLYWOOD FOR THE
INFILTRATION OF AMERICANISMS INTO THE BRITISH VOCABULARY WHILE ALSO ARGUING
THAT THE TREND MUST BE RESISTED FOR THE QUEEN'S FAITHFUL TO BE ABLE TO
UNDERSTAND ONE ANOTHER IF OUR PRESENTERS NEWSCASTERS STOOD UP THERE AND
USED HOLLYWOOD ENGLISH PEOPLE WOULD WONDER WHAT'S GOING ON SAYS ANTHONY
HALL MANAGING DIRECTOR OF NEWS AND CURRENT AFFAIRS AT THE BBC

BUT IN THE US SOME SUSPECT THAT WHAT'S REALLY AT ISSUE IS THE DOMINANCE
OF US MEDIA AND CULTURE WHAT MANY BRITS DON'T REALIZE IS THAT THE REST
OF US IN THE ENGLISHSPEAKING WORLD NOW FAR OUTNUMBER THEM SAYS ROBERT
MACNEIL HALF OF PUBLIC TELEVISION'S MACNEIL/LEHRER NEWSHOUR AND AN AUTHOR
OF THE STORY OF ENGLISH

AMERICA IS DRIVING THE LANGUAGE NOW HE SAYS ADDING THAT AMERICANS ARE
IN EVERY WAY GREATER INNOVATORS THAN THE BRITISH WHOSE IMPERIAL
CONDESCENSION HAS BEEN SUPERSEDED BY A CULTURAL INFERIORITY COMPLEX

PERHAPS BUT THEN THERE IS AS MRS SHELLEY POINTS OUT THE SENTENCE HE
DID IT REAL GOOD NO BRITISH CHILD WOULD WRITE THAT IN AN ESSAY SHE
SAYS UNLESS HE WERE QUOTING AMERICAN SPEECH 9307130149 930713
TECHNOLOGY BAXTER EXPANDS PACT WITH UK'S CANTAB FOR KIDNEY MEDICINE

DEERFIELD ILL BAXTER INTERNATIONAL INC SAID IT AGREED TO EXPAND ITS
COLLABORATION WITH CANTAB PHARMACEUTICALS PLC ON DEVELOPMENT OF A DRUG TO
PREVENT REJECTION OF KIDNEY TRANSPLANTS

OF THE ABOUT 20000 PEOPLE WHO RECEIVE TRANSPLANTS WORLDWIDE EACH YEAR
MORE THAN HALF EXPERIENCE ACUTE REJECTION AND ARE TREATED WITH DRUGS THAT
SUPPRESS THE IMMUNE SYSTEM RISKING INFECTION AND LONGER HOSPITAL STAYS

ANTICD45 IS DESIGNED TO TREAT THE KIDNEY BEFORE IT IS IMPLANTED COMPOSED
OF TWO MONOCLONAL ANTIBODIES THE COMPOUND SEEKS TO TURN OFF IN THE
TRANSPLANT ORGAN CERTAIN CELLS THAT ARE THOUGHT TO TRIGGER IMMUNE SYSTEM
ATTACK

BAXTER BEGAN FUNDING UNITED KINGDOMBASED CANTAB'S RESEARCH TWO YEARS AGO
CLINICAL TRIALS BEGAN IN 1992 THE ORIGINAL PACT PROVIDED THE US CONCERN
WITH MARKETING RIGHTS IN EUROPE AND NORTH AMERICA

THE TWO COMPANIES EXPANDED BAXTER'S MARKETING RIGHTS FOR THE NEW DRUG TO
INCLUDE JAPAN AND THE PACIFIC RIM NATIONS GIVING IT GLOBAL MARKETING
RIGHTS BAXTER WILL PAY AN UNDISCLOSED LICENSING FEE AS WELL AS ROYALTIES
AND PLANS TO FUND FURTHER RESEARCH BAXTER ALSO RECEIVED FOR THE FIRST TIME
WORLDWIDE MANUFACTURING RIGHTS FOR THE DRUG

IN APRIL THE TWO COMPANIES DISCLOSED WHAT THEY CHARACTERIZED AS FAVORABLE
RESULTS FROM LIMITED CLINICAL TRIALS AND MORE WIDESPREAD TRIALS ARE
EXPECTED TO BEGIN LATER THIS YEAR A BAXTER SPOKESMAN SAID THE COMPOUND
APPEARS TO WORK WELL IF IT IS ABSORBED ADEQUATELY INTO THE DONOR ORGANAND
THAT CURRENT RESEARCH IS TO IMPROVE THE DRUG'S UPTAKE INTO THE KIDNEY
9307130148 930713 ECHLIN ACQUIRES FRICTIONTECH

BRANFORD CONN ECHLIN INC SAID IT ACQUIRED FRICTIONTECH INC FOR
750000 NEW SHARES OF ECHLIN STOCK VALUED AT 20 MILLION

FRICTIONTECH BASED IN GUELPH ONTARIO MANUFACTURES NONASBESTOS BRAKE PADS
FOR AUTOMOBILE DISK BRAKES IT HAS ANNUAL SALES OF 20 MILLION ECHLIN A
MAKER OF MOTORVEHICLE REPLACEMENT PARTS HAS ANNUAL SALES OF 19 BILLION

IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ECHLIN CLOSED
AT 2875 UP 125 CENTS 9307130147 930713 EXXON TO BUY BACK DEBENTURES

THE OIL COMPANY SAID BOTH ISSUES WILL BE REDEEMED AT 100 OF PRINCIPAL PLUS
INTEREST ACCRUED TO THE REDEMPTION DATE A SPOKESMAN SAID THE COMPANY
CURRENTLY HAS 1565 MILLION PRINCIPAL AMOUNT OF ITS 6 DEBENTURES AND
1533 MILLION PRINCIPAL AMOUNT OF ITS 6 1/2 DEBENTURES OUTSTANDING

THE SPOKESMAN SAID THAT WITH THE CURRENT INTERESTRATE ENVIRONMENT IT'S
JUST ECONOMICALLY ATTRACTIVE TO REDEEM THE DEBENTURES NOW 9307130146
930713 EASTMAN KODAK TO GET PATENT

ROCHESTER NY EASTMAN KODAK CO SAID IT HAS BEEN NOTIFIED THAT IT WILL
RECEIVE A PATENT FOR ITS METHOD OF PERFORMING POLYMERASECHAINREACTION
DIAGNOSIS

KODAK'S TECHNOLOGY WILL ALLOW CLINICAL LABORATORIES TO CONDUCT TESTS
ROUTINELY BASED ON PCR WHICH MAKES IT POSSIBLE TO TURN SMALL QUANTITIES OF
DNA INTO QUANTITIES BIG ENOUGH TO BE INTERPRETED IT HAS POTENTIAL IN THE
EARLY DETECTION OF CANCER INFECTIOUS AND GENETIC DISEASES A KODAK
SPOKESMAN SAID THE COMPANY DOESN'T HAVE ANY SALES PROJECTION FOR THE
PRODUCT

KODAK'S ANNOUNCEMENT COMES ONE MONTH AFTER IT ROCHE HOLDING INC'S
HOFFMANNLA ROCHE INC UNIT AND CHIRON CORP SAID THEY AGREED TO END A
DISPUTE OVER OWNERSHIP AND RIGHTS UNDER PCR PATENTS 9307130145 930713
WESTINGHOUSE GETS PHONE JOB

PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT SIGNED A CONTRACT VALUED
AT 60 MILLION TO SUPPLY AT LEAST 7500 MOBILE TELEPHONES TO OPTUS MOBILE
PTY OF SYDNEY AUSTRALIA

OPTUS WILL USE THE PHONES WITH ITS MOBILESAT SERVICE A MOBILE SATELLITE
COMMUNICATIONS SYSTEM THE WESTINGHOUSE PHONE CAN TRANSMIT VOICE FAX OR
DATA THE CONTRACT VALUE INCLUDES SALES AND SERVICE THROUGH THE END OF THE
DECADE

WESTINGHOUSE HAD 84 BILLION IN REVENUE IN 1992 9307130144 930713 WHO'S
NEWS WYATT CO

WYATT CO WASHINGTON DC A W SMITH JR MANAGER OF THE WASHINGTON
OFFICE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS
EMPLOYEEOWNED CONSULTING FIRM MR SMITH 49 YEARS OLD SUCCEEDS MICHAEL H
DAVIS 57 WHO IS RETIRING ALSO PAUL R DAOUST 45 MANAGER OF THE NEW
YORK OFFICE WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER
SUCCEEDING LEROY B PARKS JR 55 WHO IS RETIRING 9307130142 930713
TECHNOLOGY COSTLY NEW OVEN CHALLENGES MICROWAVE  BY MICHAEL J
YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL

FREMONT CALIF ABOUT A DECADE AGO ROBERT I BEAVER II A CHIPMAKING
EQUIPMENT MAKER HAD LUNCH WITH GENE WESTERBERG A PHYSICIST AT A LOCAL
RESEARCH INSTITUTE MR BEAVER HAD BEEN READING ABOUT GOURMET PIZZAS IN A
MAGAZINE MR WESTERBERG HAD BEEN TINKERING WITH FASTER HEATING OF WAFERS
THE SILICON CHUNKS THAT ARE DICED INTO INTEGRATED CIRCUITS A PIZZA IS LIKE
A BIG WAFER THEY AGREED

CUT TO CHICAGO AND A SMALL DISPLAY SPACE AT THE NATIONAL RESTAURANT
ASSOCIATION SHOW LAST MAY PIZZAS GO INTO A SLEEK STAINLESSSTEEL MACHINE
AND SLIDE OUT 46 SECONDS LATER BROWNED TO PERFECTION CRISP AND TASTY
PEOPLE LINE UP FOR SAMPLES

USING CUSTOMIZED SOFTWARE AND SPECIAL QUARTZ BULBS THAT COUPLE INTENSE
VISIBLE LIGHT WITH INFRARED RADIATION MR BEAVER'S HIGHTECH STARTUP
QUADLUX INC HAS INVENTED A DEVICE THAT CAN COOK WITH THE SPEED OF A
MICROWAVE AND THE QUALITY OF A CONVENTIONAL OVEN THE COMPANY HOPES TO JOIN
THE GROWING RANKS OF US COMPANIES THAT ARE USING YANKEE SOFTWARE INGENUITY
TO TAKE BACK GROUND FROM THE JAPANESE IN A CONSUMERELECTRONICS MARKET
ALONG WITH MAKERS OF PRINTERS PAGERS AND CELLULAR PHONES

THE DEVICE CALLED FLASHBAKE HAS THE POTENTIAL TO INCREASE RESTAURANT
PRODUCTION OF PIZZAS AND OTHER DISHES FIVE TO TENFOLD AND EARLY REVIEWS
ARE PRETTY EFFUSIVE

THIS THING IS ABSOLUTELY INCREDIBLE SAYS JOE ZOELLIN THE EXECUTIVE CHEF
AT FLAHERTY'S SEAFOOD GRILL IN CARMEL CALIF WHICH IS USING A FLASHBAKE
PRIMARILY FOR APPETIZERS WE'RE USING IT FOR ALL SORTS OF FISHSTICKS AND
FILETS IT'S AWESOME WITH PRAWNS

IT'S AN EXCITING PRODUCT AGREES ED JONES WHO WAS AT THE CHICAGO SHOW AND
IS A MARKETING MANAGER AT FARBERWARE INC NEW YORK WHICH MAKES CONVECTION
OVENS IT SEEMED LIKE IT WORKED PRETTY WELL THE PIZZA CAME OUT PRETTY
GOOD

MR BEAVER QUADLUX'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS THE
COMPANY IS CLOSING ORDERS ON HUNDREDS OF OVENS FROM RESTAURANTS AND HOTELS
AND IS NEGOTIATING WITH SEVERAL UNNAMED CHAINS INCLUDING OF COURSE PIZZA
VENDORS HE SAYS THE COMPANY IS ALSO TALKING TO SEVERAL MAJOR APPLIANCE
MAKERS ABOUT A STRATEGIC ALLIANCE FOR MARKETING AND SALES

BUT THE REAL BREAKTHROUGH HE SAYS COULD BE THE HOME MARKET WE REGARD US
AS REPLACING MICROWAVES AND IN SOME ENVIRONMENTS MAYBE CONVENTIONAL OVENS
HE SAYS

THE OVEN STILL HAS MAJOR DRAWBACKS THE TWO CURRENT MODELS LIST FOR 7500
AND 9500 COMPARED WITH RESTAURANT OVENS COSTING ABOUT 1500 AND
MICROWAVE OVENS THAT GO FOR 200 OR LESS AND BOTH MODELS ARE LIMITED TO
COOKING ONLY ITEMS THAT CAN FIT INTO A SPACE THREE INCHES HIGH BUT MR
BEAVER NOTES THE PRODUCTIVITY GAINS FROM USING HIS MACHINES AND SAYS FUTURE
MODELS SHOULD BE BIG ENOUGH TO COOK A TURKEY THOUGH THE INCREASE IN SPEED
MAY NOT BE VERY DRAMATIC AT THAT SIZE HE FORESEES A HOME VERSION WITHIN A
COUPLE OF YEARS SELLING FOR 1000

JUAN LOEZA THE HEAD CHEF AND MANAGER AT PASTABELLA A SAN FRANCISCO
RESTAURANT LOVES THE DEVICE WHICH HE HAS BEEN TRYING OUT IT WILL
PROBABLY TAKE OVER THE OVEN INDUSTRY HE SAYS FLASHBAKE ENABLED THE
RESTAURANT TO SPEED UP PIZZA PRODUCTION SETTING A RECORD OF 150 PIES ONE
DAY

BUT STICKER SHOCK COULD BE A LINGERING PROBLEM SHAVING FIVE MINUTES OFF THE
TIME IT TAKES TO COOK PIZZA IN HIS REGULAR 1500 OVEN STILL HASN'T
PERSUADED MR LOEZA TO BUY A FLASHBAKE AND THE COMPANY IS OFFERING HIM A
5000 CUTRATE PRICE ON HIS LOANER THE PRICE IS THE ONLY THING WRONG WITH
IT HE SAYS IT'S JUST TOO MUCH

THEY'RE REALLY GOING TO HAVE TO LOWER THE PRICE TREMENDOUSLY SAYS ANNE
HOWARD A MARKETING DIRECTOR AT SHARP ELECTRONICS CORP MAHWAH NJ THE
LEADING MICROWAVE MAKER IN THE US WITH A 23 MARKET SHARE

TAKING ON THE MICROWAVE IS A PRETTY TALL ORDER FOR A COMPANY WITH FEWER THAN
30 EMPLOYEES IN AN UNDERUSED WAREHOUSE/OFFICE SPACE AN HOUR SOUTH OF SAN
FRANCISCO MICROWAVES ARE IN NEARLY NINE OF EVERY 10 HOMES THEIR BIG
DRAWBACK IS THAT THEY USE RADIATION TO ZAP THE WATER INSIDE FOOD HEATING
FROM THE INSIDE OUT BUT OFTEN COOKING UNEVENLY AND LEAVING THE TEXTURE
RUBBERY LAST YEAR 76 MILLION WERE SOLD IN THE US MOSTLY A SURVEY
SHOWS TO POP CORN AND HEAT FROZEN FOOD

FLASHBAKE IN CONTRAST WORKS BY HEATING FOOD DIRECTLY WITH SHORT BURSTS OF
LIGHT KEEPING CELL WALLS INTACT AND TEXTURE FIRM AS INFRARED RADIATION
BROWNS THE OUTSIDE AND THE VISIBLE LIGHT SEEPS INSIDE

THE COMPANY SAYS FURTHER RESEARCH AND DEVELOPMENT WILL BE MOSTLY IN
SOFTWARE WHICH CONTROLS THE RAPID FLICKERING OF THE LIGHTS TO MODERATE THE
COOKING AND ADJUSTS THE OVEN TEMPERATURE TO COMPENSATE FOR HEAT BUILDUP WE
WROTE IT FROM THE GROUND UP SAYS MR WESTERBERG YOU'RE SEEING A LOT MORE
SOFTWARE IN COMMERCIAL APPLIANCES IT'S A TREND

EARLY VERSIONS OF THE OVEN WERE CONTROLLED BY A COMMODORE PET A HOME
COMPUTER POPULAR IN THE LATE 1970S THE CURRENT SOFTWARE WHICH USES
STANDARD CHIPS LETS A CHEF CHOOSE DIFFERENT INTENSITIES AND TIMES FOR THE
TOP BOTTOM INSIDE AND OUTSIDE OF FOOD DOZENS OF DETAILED RECIPES CAN BE
PREPROGRAMMED

JUDGED BY THE EATING FLASHBAKE SEEMS TO LIVE UP TO MOST OF ITS BOASTS IT
TURNS ON INSTANTLY AND A RACK GLIDES OUT TO GREET THE FARE SAY PRAWNS
THEN A YELLOWGREEN LIGHT BATHES THE PRAWNS WHICH IN THE SECOND MODEL
ROTATE ON THEIR TRAY BUBBLING AND BLISTERING SEVENTY SECONDS LATER
THEY'RE FIRM AND JUICY A NEW YORK STEAK POPS OUT CHARRED ON THE OUTSIDE AND
PINK INSIDE AFTER 105 SECONDS AND A CHICKEN BREAST TAKES ALL OF TWO MINUTES
TO ROAST TO PERFECTION NACHOS DON'T TURN SOGGY AND FRENCH FRIES CRISP
NICELY

ORIGINALLY MR BEAVER AND MR WESTERBERG SIMPLY WANTED TO BRING HIGH
TECHNOLOGY TO PIZZA OF WHICH AMERICANS GOBBLED UP 25 BILLION LAST YEAR
MR BEAVER PUT IN 750000 OF HIS OWN MONEY SETTING UP A LAB IN HIS GARAGE
BEFORE THE COMPANY INCORPORATED THREE YEARS AGO AND SWALLOWED UP 36
MILLION IN VENTURE CAPITAL IT WAS ONLY ABOUT SIX MONTHS AGO THAT THE IDEA
OF GOING BEYOND PIZZA HIT HOME WE DISCOVERED IT COOKS A WHOLE BUNCH OF
STUFF SAYS MR BEAVER OUR OPINION OF THE MARKET HAS REALLY FANNED OUT

PARTLY THAT COMES FROM CONSTANTLY EXPERIMENTING IN THE BEAVER HOME ONE
CRITIC THOUGH HAS BEEN HARD TO PLEASE TENYEARYEAROLD KRISTIN BEAVER
ONCE ASKED FOR A PEANUT BUTTER AND JELLY PIZZA THE VERDICT DADDY DON'T
MAKE ANOTHER OF THOSE 9307130141 930713 POLITICS & POLICY CHEMISTRY
BETWEEN MOYNIHAN AND ROSTENKOWSKI COULD BE CRUCIAL IN COOKING UP DEFICIT
ACCORD  BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON DAN ROSTENKOWSKI HAS HIS OWN FORMULA FOR HOW THE
DEFICITREDUCTION CONFERENCE COULD WORK

PUT MOYNIHAN AND ME IN A ROOM AND WE'LL HAVE A CONFERENCE REPORT IN 20
MINUTES THE HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN SAYS ABOUT HIS SENATE
FINANCE COMMITTEE COUNTERPART DANIEL PATRICK MOYNIHAN I DON'T KNOW IF WE
COULD PASS IT BUT WE'D GET ONE OUT

CULTURALLY THE SECONDGENERATION CHICAGO WARDHEELER AND THE FORMER HARVARD
PROFESSOR ARE WORLDS APART SEN MOYNIHAN QUOTES EDMUND BURKE THE
18THCENTURY BRITISH POLITICAL PHILOSOPHER REP ROSTENKOWSKI KNOWS EDDIE
BURKE A CHICAGO ALDERMAN YET AS THE TWO CHAIRMEN BEGIN THIS WEEK TO LEAD
THE NEGOTIATIONS FOR A COMPROMISE ON PRESIDENT CLINTON'S PROGRAM THEY HAVE
MUCH MORE IN COMMON THAN IS READILY APPARENT NOT ONLY IN THEIR APPROACH
TO DEFICIT REDUCTION BUT PERSONALLY AS WELL

FOR A TIME REP ROSTENKOWSKI WAS SAID TO BE AMONG THE SKEPTICS WHO DOUBTED
THAT SEN MOYNIHAN WAS UP TO THE POLITICALLY DICEY FINANCE COMMITTEE JOB
THAT HE TOOK OVER ONLY THIS YEAR NOW THOUGH MR ROSTENKOWSKI DEMANDS
YOU TELL PEOPLE DAN PATRICK MOYNIHAN AND I ARE GETTING ALONG VERY WELL

MANY OBSERVERS STILL BELIEVE THAT IN A ONEONONE MATCH MR MOYNIHAN
WOULD BE ROLLED OVER BY MR ROSTENKOWSKI BUT THE KEY IS THAT THIS
CONFERENCE ISN'T A ONEONONE MATCH AT ALL RATHER NEITHER ONE CAN AFFORD
TO ROLL THE OTHER BECAUSE THE TWO BILLS PASSED BY SUCH TINY MARGINS THAT
TOO BIG A TILT IN THE DIRECTION OF ONE CHAMBER'S VERSION WOULD SURELY DOOM
IT IN THE OTHER THUS MR MOYNIHAN MAY ACTUALLY HAVE LESS DIFFICULTY IN
CONFERENCE THAN IF THE SENATE HAD PASSED THE BILL BY A WIDER MARGIN

THEY BOTH HAVE EXACTLY THE SAME MISSION TO GET A BILL THAT CAN PASS BOTH
HOUSES SAYS LAWRENCE O'DONNELL SEN MOYNIHAN'S CHIEF OF STAFF SO IF YOU
CAN PICK MOYNIHAN'S POCKETS AND STILL DO THAT THEN DO IT WE'LL GIVE YOU
BOTH POCKETS

IN SUCH A CHARGED POLITICAL CLIMATE PERSONAL CHEMISTRY MATTERS A LOT IN
THE CLASSIC NEGOTIATIONS OF A GENERATION AGO CHAIRMEN LIKE REP WILBUR
MILLS AND SEN RUSSELL LONG TWO WILY SOUTHERNERS KNEW WHAT ISSUES MATTERED
TO EACH OTHER AND MANEUVERED TO ACCOMMODATE THEM NOW PERSONAL CHEMISTRY
MAY BE EVEN MORE IMPORTANT WITH HUGE DEFICITS CHAIRMEN SPEND MORE TIME ON
TAX INCREASES THAN TAX GIVEAWAYS AND EVERY BENEFIT FOR A SPECIAL INTEREST
MUST BE PAIRED WITH A PROVISION THAT TAKES FROM SOMEONE ELSE

PARTY AFFILIATION HAS LITTLE TO DO WITH THE RELATIONSHIP DEMOCRAT
ROSTENKOWSKI THE NATION'S BESTKNOWN MACHINE POLITICIAN GOT ALONG FAMOUSLY
A DECADE AGO WITH REPUBLICAN BOB DOLE NOW THE SENATE GOP LEADER WHO SHARED
HIS ZEST FOR CUTTING DEALS WITH REPUBLICAN BOB PACKWOOD HE OVERHAULED THE
TAX CODE IN 1986 HE HAD LESS IN COMMON PERSONALLY WITH FELLOW DEMOCRAT
LLOYD BENTSEN THE WEALTHY PATRICIAN WHO LEFT THE SENATE THIS YEAR TO BECOME
TREASURY SECRETARY BUT BOTH OF THEM CONSUMMATE POLS THEY TOGETHER
PRODUCED MAJOR BILLS ON TRADE WELFARE AND TAXES

FOR REP ROSTENKOWSKI A COLLEGE DROPOUT WHO CONTINUES TO MIX IN NORTH
CHICAGO'S POLISH ENCLAVES THE HIGHBROW HIGHCULTURE SET IN WHICH SEN
MOYNIHAN FREELY MOVES IS SUSPECT MR MOYNIHAN HAS BEEN BEST KNOWN FOR HIS
WHITEGLOVE JOBS IN LOFTY PLACES PROFESSOR AT HARVARD WHITE HOUSE
OFFICIAL AMBASSADOR TO INDIA AND THE UNITED NATIONS AND AS A SENATOR HE
HAS MOSTLY GONE HIS OWN CEREBRAL WAY

YET AS MR ROSTENKOWSKI HAS COME TO LEARN THEY HAVE MORE IN COMMON THAN IS
READILY APPARENT

BOTH MEN ARE ETHNIC CATHOLICS OF RETIREMENT AGE WHO BEGAN THEIR CAREERS IN
THE NATION'S MOST FAMOUS BIGCITY MACHINES SEN MOYNIHAN WAS PART OF NEW
YORK CITY'S GRITTY HELL'S KITCHEN NEIGHBORHOOD AND ATTENDED HIGH SCHOOL IN
HARLEM LONG BEFORE HE BECAME FAMILIAR TO MANHATTAN AND HARVARD REP
ROSTENKOWSKI'S LIEGESHIP TO THE LATE CHICAGO MAYOR RICHARD DALEY IS
FAMILIAR LESS SO IS SEN MOYNIHAN'S CLAIM TO NEW YORK CITY'S DEAR OLD
TAMMANY HALL AS HE CALLS IT IN ITS DEATH THROES BY THE TIME HE ENTERED
POLITICS WITH GOV AVERELL HARRIMAN IN THE 1950S

THE SENATOR SPEAKS BOTH FROM EXPERIENCE AND SCHOLARSHIP HE HAS WRITTEN
EXTENSIVELY ON URBAN POLITICS WHEN HE SAYS OF REP ROSTENKOWSKI HE
COMES FROM WHAT TO ME WAS A VERY SOUND TRADITION BIGCITY DEMOCRATIC
POLITICS JUST AS EASILY AS THE SENATOR SUMMONS SHAKESPEARE HE CAN RECALL
HINKYDINK KENNA AND BATHHOUSE JOHN COUGHLIN TWO LONGAGO WARD BOSSES
AND ALLAROUND CHICAGO CHARACTERS

MR ROSTENKOWSKI SAYS I WAS SURPRISED WE HAVE SO MANY THINGS IN COMMON
HE ADDS PLAYFULLY THE DIFFERENCE IS HE LIVES ON A FARM NOW AND I STILL
LIVE IN THE SAME HOUSE WHERE I WAS BORN

AS THE CONFERENCE GETS UNDER WAY MANY ASSUME THAT SENATE MAJORITY LEADER
GEORGE MITCHELL OF MAINE WILL CALL A LOT OF THE SHOTS IN THE NEGOTIATIONS
AT THE SAME TIME NO ONE DOUBTS THAT REP ROSTENKOWSKI IS THE CHIEF
NEGOTIATOR FOR THE HOUSE AND HE'D MUCH PREFER TO TALK TO SEN MOYNIHAN OVER
SEN MITCHELL WITH WHOM HE HAS STRAINED RELATIONS AT BEST AT DEMOCRATS'
FIRST STRATEGY MEETING RECENTLY REP ROSTENKOWSKI BECAME ANNOYED BY SEN
MITCHELL'S TECHNICAL ARGUMENTS AGAINST PARTS OF THE HOUSE BILL

THE SAME SESSION GAVE EVIDENCE OF THE TAX CHAIRMEN MOVING IN SYNC AT ONE
POINT REP ROSTENKOWSKI ROSE AND SEN MOYNIHAN LIKEWISE GOT UP BUT MR
ROSTENKOWSKI WAS MERELY REACHING FOR A COOKIE OH I THOUGHT WE WERE
LEAVING SEN MOYNIHAN SAID AND HE SAT BACK DOWN

STILL THE BIGGEST TEST OF THEIR ABILITY TO COOPERATE LIES AHEAD AND THE
STAKES FOR EACH ARE ENORMOUS REP ROSTENKOWSKI EVER CONCERNED ABOUT HIS
LEGACY WANTS TO PROVE HE CAN STILL WIN THE BIG ONES EVEN AS HE OPERATES
UNDER THE CLOUD OF A FEDERAL GRAND JURY INVESTIGATION OF HIS OFFICE
FINANCES

SEN MOYNIHAN MEANWHILE IS STILL STRUGGLING TO PUT TO REST THOSE DOUBTS
ABOUT WHETHER THE POLICY EGGHEAD CAN BE POLITICAL ENOUGH TO HANDLE THIS
EXTRAORDINARILY DELICATE TASK IT IS A STRUGGLE WITH WHICH HIS HOUSE
COUNTERPART HAS SOME SYMPATHY WHEN REP ROSTENKOWSKI ASCENDED TO THE WAYS
AND MEANS CHAIRMANSHIP A DOZEN YEARS AGO THE QUESTION WAS COULD ROSTY
THE POLITICAL HACK BECOME POLICY MAKER

THE SHARED EXPERIENCE OF DOUBT MAY EXPLAIN WHAT HAPPENED LAST WINTER AFTER
A NATIONAL MAGAZINE QUOTED AN UNNAMED CLINTON AIDE SAYING THE ADMINISTRATION
COULD ROLL RIGHT OVER THE NEW SENATE FINANCE CHAIRMAN ALMOST IMMEDIATELY
MR MOYNIHAN RECEIVED TWO PHONE CALLS THE SECOND WAS FROM AN APOLOGETIC
BILL CLINTON BUT THE FIRST WAS FROM DAN ROSTENKOWSKI

IF THEY'RE NOT TALKING TO YOU HE HUFFED IN SOLIDARITY THEN THEY'RE NOT
TALKING TO ME 9307130140 930713 ADOLPH COORS UNIT TO REDUCE JOBS HELD
 BY WHITE COLLAR STAFF

GOLDEN COLO ADOLPH COORS CO SAID IT WILL REDUCE THE WHITE COLLAR WORK
FORCE OF ITS COORS BREWING CO UNIT BY ABOUT 500 PEOPLE AND WILL OFFER AN
ADDITIONAL 100 MARKETING AND FIELD STAFF EMPLOYEES JOBS AT A NEW
FREESTANDING MARKETING SERVICES COMPANY

THE MOVE WILL REDUCE COORS'S WHITE COLLAR EMPLOYMENT ABOUT 20 FROM 2500
OVER THE NEXT THREE MONTHS NONE OF THE COMPANY'S 4050 PRODUCTION PERSONNEL
WILL LOSE THEIR JOBS

THE JOB REDUCTION IS PART OF A CORPORATE RESTRUCTURING AIMED AT REDUCING
COSTS AND IMPROVING FINANCIAL PERFORMANCE AT COORS THE COMPANY SAID THE
COMPANY RECENTLY REPORTED IMPROVED SECONDQUARTER EARNINGS BUT COORS
MANAGEMENT HAS BEEN FRUSTRATED BY CONTINUED SLIM MARGINS AND LOW RETURNS TO
SHAREHOLDERS IN ITS SECONDQUARTER REPORT THE COMPANY PREDICTED THE SECOND
HALF OF 1993 WILL BE CHALLENGING DUE TO INDUSTRY WIDE PRICE DISCOUNTING
AND HEAVY PROMOTIONAL EXPENSES

THE NATION'S THIRD LARGEST BREWER SAID IT PLANS TO COMPLETE MOST OF THE JOB
REDUCTIONS THROUGH ATTRITION EARLY RETIREMENT INCENTIVES AND VOLUNTARY
RESIGNATIONS THE COMPANY WILL TAKE A RESERVE IN THE THIRD QUARTER TO PAY
FOR SEVERANCE PACKAGES BUT A SPOKESWOMAN SAID NO ESTIMATE HAS BEEN MADE OF
THE CHARGE

THE CUTBACKS AT COORS COME AS THE BEER INDUSTRY IS GOING THROUGH A TOUGH
PERIOD SAID EMANUEL GOLDMAN ANALYST AT PAINEWEBBER SECURITIES INC SAN
FRANCISCO IN THIS VERY COMPETITIVE INDUSTRY YOU REALLY HAVE TO RUN AS
TIGHT A SHIP AS POSSIBLE HE ESTIMATED THE THIRDQUARTER CHARGE COULD BE 50
CENTS TO 60 CENTS A SHARE OR ABOUT 20 MILLION

THE COMPANY SAID ITS MERCHANDISING CONSUMER PROMOTION FIELD MEDIA AND SOME
OTHER ACTIVITIES WILL BE HANDLED BY FRONT RANGE COMMUNICATIONS GROUP AN
INDEPENDENT COMPANY OWNED BY DALLAS BASED MARKETING AGENCY CASE/DUNLAP
ENTERPRISES INC AND RON ASKEW

COORS'S EMPLOYEES WHO ARE CURRENTLY PERFORMING THOSE FUNCTIONS WILL BE
OFFERED JOBS AT THE NEW AGENCY 9307130139 930713 WHO'S NEWS GRACO INC

GRACO INC MINNEAPOLIS JOHN L HELLER 57 YEARS OLD FORMERLY VICE
PRESIDENT PACIFIC OPERATIONS WAS NAMED SENIOR VICE PRESIDENT AND GENERAL
MANAGER OF THE CONTRACT EQUIPMENT DIVISION OF THIS FLUIDMANAGEMENT CONCERN
SUCCEEDING ROBERT F HASSE WHO IS RETIRING 9307130138 930713 REVIEW &
OUTLOOK EDITORIAL VUK'S VICTORY

EARLIER THIS MONTH HERE WE DETAILED SERBIAN STRONG MAN SLOBODAN MILOSEVIC'S
IMPRISONMENT AND POLICE BEATING OF VUK DRASKOVIC THE LEADER OF THE
OPPOSITION SERBIAN RENEWAL MOVEMENT ON FRIDAY THE SERBIAN DICTATOR
ANNOUNCED A DECISION TO FREE MR DRASKOVIC AND HIS WIFE THIS REPRESENTS A
CRACK IN THE SERBIAN PRESIDENT'S PROTECTIVE WALLS ARRESTED AND BRUTALLY
BEATEN LAST MONTH FOR ATTEMPTING TO OVERTHROW THE CONSTITUTIONAL ORDER
MR DRASKOVIC WAS ON THE BRINK OF DEATH NINE DAYS INTO A HUNGER STRIKE HIS
DANGEROUS GAMBLE PAID OFF MILOSEVIC RECKONED THAT MR DRASKOVIC WOULD BE
MORE THREATENING AS A MARTYR THAN AS AN OPPOSITION LEADER

BUT NOW MR DRASKOVIC IS NO LONGER JUST AN OPPOSITION LEADER AMONG MANY
UNTIL NOW THE REGIME'S OPPONENTS HAD BEEN SO DIVIDED THAT SOME GROUPS
DIDN'T EVEN PROTEST MR DRASKOVIC'S ARREST THE HUNGER STRIKE HOWEVER DREW
INTERNATIONAL ATTENTION AND PRESSURE LORD OWEN MR AND MRS FRANCOIS
MITTERRAND BILL CLINTON AND HELMUT KOHL HAVE BEEN AMONG THOSE DEMANDING MR
DRASKOVIC'S RELEASE

HIS OWN SERBIAN RENEWAL PARTY HAS STAGED PROTESTS AND CIRCULATED PETITIONS
RALLYING OTHER GROUPS SEVERAL SERBIAN OPPOSITION PARTIES PLANNED MASS
PROTEST RALLIES THIS WEEK AND THAT SURELY WORRIED MILOSEVIC SERBS HAVE
PLENTY OF OTHER REASONS TO TAKE TO THE STREETS TO VENT THEIR ANGER
INCLUDING A 10 DAILY INFLATION RATE PLUMMETING REAL INCOMES AND SHORTAGES
CAUSED BY INTERNATIONAL SANCTIONS

FRIDAY'S MOVE WILL NOT RESTORE THE STATUS QUO SUPPORT FROM WESTERN LEADERS
JELLED MR DRASKOVIC'S IMAGE AS A SERBIAN NATIONALIST WHO REPENTS
NATIONALISM'S BRUTAL CONSEQUENCES HIS WIFE HAS VOWED THAT THE COUPLE WILL
FIGHT HARDER THAN EVER TO END THE DICTATORSHIP AND PEOPLE IN THE STREET ARE
BOASTING ABOUT THE BEGINNING OF THE END FOR MILOSEVIC THEY MAY BE OVERLY
OPTIMISTIC BUT IT IS AN ENCOURAGING THOUGHT IF SERBS THEMSELVES ARE
BEGINNING TO UNDERSTAND THE ENORMITY OF MILOSEVIC'S CRIMES THERE MAY BE
HOPE FOR THE BALKANS YET

MOREOVER THE SIGNIFICANCE OF THE DRASKOVIC CASE SHOULDN'T BE LOST ON
WESTERN POLICY MAKERS WHETHER THE OPPONENT IS A MILOSEVIC OR SADDAM
HUSSEIN IT IS IMPORTANT FOR THE WEST TO IDENTIFY AND PROTECT LEGITIMATE
OPPOSITION LEADERS IF THESE BELEAGUERED COUNTRIES ARE TO TURN FROM
DISRUPTION TO PEACE IT WILL HAVE TO INCLUDE THESE PEOPLE 9307130137
930713 WHO'S NEWS CELGENE CORP

CELGENE CORP WARREN NJ JOHN UFHEIL THE 59YEAROLD CHAIRMAN AND
CHIEF EXECUTIVE OFFICER OF THIS BIOTECHNOLGY CONCERN ASSUMED THE ADDITIONAL
DUTIES OF PRESIDENT AND CHIEF OPERATING OFFICER FOLLOWING THE DEATH SATURDAY
OF THOMAS ODIORNE MR ODIORNE 52 APPARENTLY DIED OF A HEART ATTACK MR
ODIORNE HAD SUCCEEDED MR UFHEIL AS PRESIDENT IN APRIL WHEN HE ALSO WAS
NAMED CHIEF OPERATING OFFICER A NEW POSITION 9307130136 930713 CPC
INTERNATIONAL POSTS 51 INCREASE IN SECONDPERIOD NET

ENGLEWOOD CLIFFS NJ CPC INTERNATIONAL INC POSTED A 51 INCREASE IN
SECONDQUARTER EARNINGS REFLECTING WEAK RESULTS IN ITS EUROPEAN AND US
FOOD BUSINESSES

CPC WHICH MAKES SUCH PRODUCTS AS MAZOLA CORN OIL AND HELLMANN'S MAYONNAISE
HAD PREDICTED AT THE START OF 1993 THAT EARNINGS WOULD INCREASE 10 THIS
YEAR THE FIRSTQUARTER'S RESULTS ALSO FAILED TO MEET THAT FORECAST

CPC REPORTED SECONDQUARTER NET INCOME OF 1169 MILLION OR 76 CENTS A
SHARE COMPARED WITH 1113 MILLION OR 72 CENTS A SHARE IN THE
YEAREARLIER PERIOD EXCLUDING THE POSITIVE EFFECT IN THE YEAREARLIER
PERIOD OF AN ACTUARIAL REEVALUATION OF WORKERS' COMPENSATION LIABILITIES
PERSHARE NET WOULD HAVE RISEN 94

WORLDWIDE SALES ROSE 1 TO 169 BILLION

THE COMPANY SAID OPERATING PROFIT IN ITS US CONSUMER FOODS BUSINESS GREW
ONLY 32 IN THE SECOND QUARTER THE UNIT WAS HURT BY PRICING PRESSURE AND
HIGHER MARKETING COSTS REFLECTING SEVERAL PRODUCT LAUNCHES

CPC EUROPE POSTED A 73 DROP IN OPERATING PROFIT WHICH THE COMPANY
ATTRIBUTED LARGELY TO UNFAVORABLE EXCHANGE RATES OPERATING PROFIT IN CPC'S
SMALLER BUSINESSES IN LATIN AMERICA AND ASIA GREW 26 AND 21 RESPECTIVELY

OPERATING PROFIT IN CPC'S CORN REFINING BUSINESS DECLINED 33 THE COMPANY
SAID ITS PERFORMANCE WAS AFFECTED BY THE CONTINUING IMPACT ON NORTH AMERICAN
MARGINS OF DIFFICULT PROCESSING CONDITIONS RESULTING FROM THE POOR QUALITY
OF THE 1992 CORN CROP

THE WEAK SHOWING WAS LARGELY EXPECTED BY WALL STREET CLEARLY THE QUARTER
WAS VERY UNINSPIRING SAID NOMI GHEZ AN ANALYST AT GOLDMAN SACHS & CO
EUROPEAN EARNINGS WERE ACTUALLY DOWN IN THE QUARTER BUT THE US IS NOT
VERY VIBRANT EITHER THERE WILL PROBABLY BE MORE OF THE SAME IN THE NEXT FEW
QUARTERS

IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CPC WAS QUOTED AT
4150 UP 125 CENTS 9307130135 930713 WHO'S NEWS US SHOE HIRES
LAUDERBACK

CINCINNATI US SHOE CORP SAID BRENDA J LAUDERBACK 43 YEARS OLD
FORMERLY A VICE PRESIDENT WITH DAYTON HUDSON DEPARTMENT STORES A UNIT OF
DAYTON HUDSON CORP OF MINNEAPOLIS WAS NAMED PRESIDENT WHOLESALING OF
THIS COMPANY'S FOOTWEAR GROUP

THE COMPANY SAID MS LAUDERBACK WILL ASSUME SOME OF THE RESPONSIBILITIES
HELD BY MICKEY SCHULMAN WHO RETIRED AS PRESIDENT OF THE WHOLESALE FOOTWEAR
UNIT IN JUNE MS LAUDERBACK WILL HEAD THE AREAS OF SALES MARKETING AND
PRODUCT DEVELOPMENT OF THE EASY SPIRIT SELBY & CO AND MARX AND NEWMAN
IMPORT DIVISIONS

THE SPECIALTY RETAILER ALSO NAMED DAVID L DORFF 37 WHO HAS BEEN VICE
PRESIDENT OF MANAGEMENT INFORMATION SYSTEMS FOR THE COMPANY SINCE MARCH
1991 TO THE NEW POST OF EXECUTIVE VICE PRESIDENT OF THE FOOTWEAR GROUP A
SPOKESMAN FOR US SHOE SAID THE COMPANY DOESN'T ANTICIPATE NAMING A
SUCCESSOR TO MR DORFF 9307130134 930713 ECONOMY US PLANS TO TEST 
SUMMERJOB PLAN FOR SCHOOL YEAR  BY KEVIN G SALWEN STAFF
REPORTER OF THE WALL STREET JOURNAL

WASHINGTON ENDLESS SUMMER MAY BE COMING TO YOUR LOCAL HIGH SCHOOL 
ENDLESS SUMMER JOBS ANYWAY

THE LABOR DEPARTMENT PLANS TO ANNOUNCE FRIDAY THAT IT IS GIVING 23 MILLION
IN GRANTS FOR PILOT PROJECTS TO TEST A SUMMERJOB PROGRAM DURING THE SCHOOL
YEAR

THE SUMMER JOBS EXPERIENCE GIVES A WINDOW TO THE WORLD OF WORK LABOR
SECRETARY ROBERT REICH SAID IN AN INTERVIEW THE NOTION HERE IS TO EXTEND 
 THE SCHOOL AND WORK LINKAGE TO YEARROUND EVENTUALLY SCHOOL
CURRICULUMS WOULD BE ADAPTED TO INCLUDE MORE WORKRELATED ACTIVITIES

THE PROGRAM WOULD TRY TO GET PRIVATE INDUSTRY TO EMPLOY MORE HIGH SCHOOL
STUDENTS AGES 14 AND OLDER DURING THE SCHOOL YEAR MUCH AS BUSINESSES
DO DURING THE SUMMER THERE ALSO WOULD BE A LINK TO SOCIAL SERVICE AGENCIES
TO TARGET DISADVANTAGED YOUTHS

MR REICH SAID THE LABOR DEPARTMENT PLANS TO PROVIDE GRANTS TO FOUR TO SIX
COMMUNITIES EAGER TO RUN TWOYEAR PILOT PROJECTS IT'S AN ATTEMPT TO FIND
OUT WHETHER A YEARROUND PROGRAM THAT COMBINES AFTERSCHOOL WORK LINKED TO
WHAT IS LEARNED IN THE CLASSROOM WILL YIELD EDUCATION RESULTS AMONG
DISADVANTAGED YOUTH HE SAID

THE AGENCY PLANS TO LOOK FOR PROJECTS THAT COULD BECOME SELFSUPPORTING IN
SEVERAL YEARS AN EFFORT TO KEEP DOWN COSTS IF THE PROGRAM IS EXPANDED
DOWN THE ROAD DEPARTMENT OFFICIALS EXPECT SOME FUNDS TO COME FROM EXISTING
SUMMERJOB PROGRAMS WHICH ARE BUDGETED AT SLIGHTLY MORE THAN 1 BILLION
THIS YEAR AND THE JOB TRAINING PARTNERSHIP ACT WHICH PROVIDES MORE THAN
400 MILLION ANNUALLY FOR SCHOOL PROGRAMS FOR DISADVANTAGED YOUTH

IN THAT WAY THE PROGRAM WOULD BE SUPPORTED BY A REDEPLOYMENT OF FUNDS

THE LABOR DEPARTMENT IS MODELING THE PROGRAM IN PART ON THE SUMMER TRAINING
AND EDUCATION PROGRAM WHICH PROVIDES EDUCATIONAL HELP FOR YOUTH IN THE
SUMMERJOB PROGRAM THAT PROJECT WHICH HAS BEEN EXPANDED BEYOND THE PILOT
TO MORE THAN 100 COMMUNITIES HAS SUCCESSFULLY KEPT UP EDUCATIONAL LEVELS
THROUGH THE SUMMER RATHER THAN LETTING STUDENTS SLIDE BACK

THE DEPARTMENT ENVISIONS THE YEARROUND SUMMERJOB PLAN AS THE FLIP SIDE OF
THAT CREATING JOBS DURING THE SCHOOL YEAR TO LINK WORK TO SCHOOL IT ALSO
COULD INCLUDE 12MONTH MENTORING PROGRAMS AFTERSCHOOL TUTORING WEEKEND
MUSEUM TRIPS OR OTHER EDUCATIONAL ACTIVITIES LABOR DEPARTMENT OFFICIALS
SAID

THE PLAN IS ONE OF SEVERAL INITIATIVES THAT THE CLINTON ADMINISTRATION IS
PLANNING TO TIE EDUCATION TO THE WORKPLACE LATER THIS SUMMER THE LABOR AND
EDUCATION DEPARTMENTS PLAN TO PROPOSE TO CONGRESS A SCHOOLTOWORK
TRANSITION PROGRAM THAT WOULD ENHANCE THE JOB SKILLS AND JOB LEARNING OF
HIGH SCHOOL STUDENTS WHO DON'T PLAN TO GO TO COLLEGE 9307130133 930713
WHO'S NEWS REEBOK INTERNATIONAL LTD

REEBOK INTERNATIONAL LTD STOUGHTON MASS RICHARD E FRANKLIN 42
YEARS OLD HAS BEEN APPOINTED SENIOR VICE PRESIDENT AND GENERAL MANAGER OF
THE FOOTWEAR CONCERN'S US OPERATIONS MR FRANKLIN WHOSE APPOINTMENT TO
THE NEWLY CREATED POSITION BECOMES EFFECTIVE AUG 9 IS VICE PRESIDENT OF
FIELD MARKETING FOR COORS BREWING CO WHERE HE'S BEEN FOR THE PAST FIVE
YEARS 9307130132 930713 GM AGREES TO SUPPLY IRON ENGINE BLOCKS FOR
TOYOTA CAMRYS

DETROIT GENERAL MOTORS CORP BROADENING ITS TIES WITH TOYOTA MOTOR
CORP AGREED TO SUPPLY THE JAPANESE AUTO MAKER WITH IRON ENGINE BLOCKS FOR
TOYOTA CAMRYS FOR AN UNDISCLOSED PRICE

THE ANNOUNCEMENT IS PART OF AN EFFORT BY JAPANESE AUTO MAKERS TO INCREASE
PURCHASES OF USMADE COMPONENTS TO DEFUSE PROTECTIONIST SENTIMENT IN
WASHINGTON LAST WEEK FORD MOTOR CO AGREED TO SUPPLY ITS CD4E AUTOMATIC
TRANSAXLE TO MAZDA MOTOR CORP FOR MAZDA'S 626 AND MX6 PASSENGER CARS FORD
OWNS 25 OF MAZDA

IN THE LATEST AGREEMENT GM SAID IT WILL SUPPLY 180000 ENGINE BLOCKS
ANNUALLY BEGINNING NEXT YEAR FOR TOYOTA'S 22LITER FOURCYLINDER ENGINE
ABOUT 75 OF THE CAMRYS BUILT BY TOYOTA IN GEORGETOWN KY ARE EQUIPPED
WITH THE FOURCYLINDER ENGINE

TOYOTA'S US UNIT CURRENTLY USES ENGINE BLOCKS BUILT BY ITS PARENT COMPANY
IN JAPAN A TOYOTA SPOKESWOMAN SAID HOWEVER THE AUTO MAKER SAID ITS GOAL
IS TO CONTINUE INCREASING ITS PURCHASES OF USMADE PARTS

GM AND TOYOTA FOR SOME TIME HAVE HAD DISCUSSIONS AIMED AT BROADENING TIES
TOYOTA HAS STEPPED UP PURCHASES OF VEHICLE PARTS MADE BY GM AND THE TWO
AUTO GIANTS RECENTLY AGREED TO PETITION THE FEDERAL TRADE COMMISSION TO LET
THEM CONTINUE INDEFINITELY THEIR NEW UNITED MOTOR MANUFACTURING INC
CARMAKING VENTURE IN FREMONT CALIF THE PACT IS SET TO END IN 1996

THIS AGREEMENT MARKS THE CULMINATION OF MANY MONTHS OF DISCUSSION BETWEEN
GENERAL MOTORS' POWERTRAIN GROUP AND TOYOTA TO DEVELOP A STRONG PARTNERSHIP
BETWEEN THE TWO ORGANIZATIONS SAID RICHARD M DONNELLY VICE PRESIDENT AND
GROUP EXECUTIVE OF THE GM GROUP 9307130131 930713 REVIEW & OUTLOOK
EDITORIAL THE NEA'S PUBLIC ENEMY 1

THE AMERICAN FEDERATION OF TEACHERS AND THE NATIONAL EDUCATION ASSOCIATION
BOTH HELD THEIR ANNUAL CONVENTIONS EARLIER THIS MONTH MOST INDIVIDUAL
TEACHERS SINCERELY WANT TO IMPROVE EDUCATION BUT THIS MONTH'S MEETINGS MADE
CLEAR THAT THE MAIN CONCERN OF THEIR UNIONS IS PROTECTING THEIR MONOPOLY
POSITION THAT'S WHY BRET SCHUNDLER THE NEW GOP MAYOR OF JERSEY CITY NJ
IS ALONG WITH THE NOVEMBER VOUCHER INITIATIVE IN CALIFORNIA IN THE
POLITICAL CROSS HAIRS OF THE UNIONS

THE NEA'S NATIONAL OFFICE HAS TARGETED MAYOR SCHUNDLER BECAUSE HE SUPPORTS
FULL SCHOOL CHOICE FOR JERSEY CITY THE CHOICE ISSUE TOPS A LIST OF BATTLES
TO COME PUBLISHED BY THE NEA'S NEW JERSEY AFFILIATE A JUNE 17 LETTER
COSIGNED BY NEA NATIONAL PRESIDENT KEITH GEIGER WARNS ABOUT MONEY BEING
DIVERTED TO PRIVATE SCHOOLS IN JERSEY CITY AND ASKS TEACHERS THROUGHOUT
THE STATE TO AUTHORIZE A DEDUCTION FROM THEIR PAYCHECKS TO ELECT ANTICHOICE
LEGISLATORS THIS FALL

MAYOR SCHUNDLER SAYS HE MERELY WANTS TO TAKE THE SAME PRINCIPLE THAT HAS
MADE AMERICA SUCCEED COMPETITION AND APPLY IT TO EDUCATION I WANT TO
SAVE INNERCITY PUBLIC SCHOOLS BY FORCING THEM TO IMPROVE HE SAYS THEY
MAY HAVE A MONOPOLY NOW BUT NO ONE ENJOYS WORKING IN THEM THEY ARE AN
URBAN TRAGEDY

EVEN SO BOTH THE NEA AND THE AFT PROMOTE POLICIES THAT PROTECT THE JOBS OF
INCOMPETENT OR POOR TEACHERS AT THE EXPENSE OF THOSE WHO WOULD IMPROVE THE
SYSTEM THE STATUS QUO STULTIFIES THE EFFORTS OF GREAT TEACHERS BUT IT ALSO
PROVIDES PROTECTED EMPLOYMENT FOR ALL UNION MEMBERS IN MUCH OF THE
NORTHEAST EVEN MARGINAL TEACHERS CAN EARN 75000 OR MORE A YEAR PLUS
BENEFITS FOR 180 DAYS OF WORK A YEAR THE COSTS OF ALL THIS ARE
MINDBOGGLING

JERSEY CITY ITSELF SPENDS AN AMAZING 9240 A YEAR PER STUDENT OR MORE THAN
300000 A CLASSROOM YET ONLY 40 OF ITS HIGH SCHOOL STUDENTS GRADUATE AND
MANY WHO DO ARE FUNCTIONALLY ILLITERATE IN 1989 THE CITY'S SCHOOLS WERE SO
BAD THAT THE STATE SEIZED CONTROL BUT MOVING CONTROL FROM ONE POLITICAL
ENTITY TO ANOTHER HASN'T IMPROVED MATTERS

WHAT LITTLE PROGRESS HAS BEEN MADE IS QUESTIONABLE HENRY PRZYSTUP THE HEAD
OF JERSEY CITY'S SCHOOL PRINCIPALS SAYS THE STATE HAS REINTERPRETED THE
PROFICIENCY TESTS IT REQUIRES TO CREATE AN ILLUSION OF IMPROVEMENT MR
PRZYSTUP HAS CONCLUDED THAT PRIVATEPUBLIC CHOICE IS AN ESSENTIAL REFORM
BECAUSE LESS RADICAL EFFORTS ARE ALWAYS WATERED DOWN BY THE UNIONS HE
NOTES THAT 33 JERSEY CITY SCHOOLS WERE SELECTED FOR SITEBASED MANAGEMENT
BUT ONLY ONE HAS ACTUALLY IMPLEMENTED THE PROGRAM

THIS FALL MAYOR SCHUNDLER HOPES TO CONVINCE NEW JERSEY'S GOP LEGISLATURE TO
LET HIS CITY ALLOW PARENTS TO TAKE 3000 OF THE 6000 IN STATE AID THAT
NOW FLOWS TO JERSEY CITY AND USE IT TO PAY TUITION IN LOCAL PRIVATE SCHOOLS
HE POINTS OUT THAT BOTH THE SUBURBS AND THE INNER CITIES WOULD BENEFIT THE
STATE'S SCHOOL EQUALIZATION FORMULA REDIRECTS 100 MILLION A YEAR FROM
BETTEROFF SCHOOL DISTRICTS TO POORER ONES MY MESSAGE TO THE SUBURBS IS
THIS STOP GIVING CITIES WHAT YOU DON'T WANT TO GIVE US NAMELY MONEY
INSTEAD GIVE CITIES WHAT WE DO WANT NAMELY CHOICE

CHOICE IS POPULAR IN JERSEY CITY AMONG ALL GROUPS POLLS TAKEN BEFORE MAY'S
MAYORAL ELECTION SHOWED 7 OUT OF 10 VOTERS FAVORED THE IDEA MR SCHUNDLER
WON 69 OF THE VOTE ON A PROVOUCHER PLATFORM AND THE NEA'S TWO MAILINGS
AGAINST HIM WERE IGNORED MR PRZYSTUP THE PRINCIPALS' LEADER SAYS JERSEY
CITY TEACHERS WHO ACTUALLY LIVE IN THE CITY ITSELF SUPPORT CHOICE THE NEW
HEAD OF JERSEY CITY'S DEMOCRATIC PARTY IS JAMES BOYLAN A PUBLIC SCHOOL
TEACHER WHO BACKS CHOICE

JERSEY CITY HAS A TRADITION OF PLURALISTIC EDUCATION UNTIL 1975 A MAJORITY
OF ITS STUDENTS WERE IN PRIVATE SCHOOLS TODAY 25 ATTEND CATHOLIC SCHOOLS
THEY GRADUATE MORE THAN 90 OF THEIR STUDENTS AT A COST ONLY ONETHIRD THAT
OF PUBLIC SCHOOLS OVERALL CHOICE WOULD SAVE TAXPAYERS MONEY

ALL THIS EXPLAINS WHY THE NATIONAL NEA WANTS TO CRUSH SCHOOL CHOICE IN TINY
JERSEY CITY THE TEACHERS UNIONS AREN'T AFRAID WE'LL FAIL MAYOR SCHUNDLER
SAYS THEY'RE AFRAID WE'LL SUCCEED AND SHOW THAT EMPOWERING PARENTS INSTEAD
OF BUREAUCRATS IS THE KEY TO IMPROVING SCHOOLS AND WEEDING OUT POOR
TEACHERS

MAYOR SCHUNDLER KNOWS HE FACES A TOUGH FIGHT THE NEA CAN COMMAND HUGE
FINANCIAL RESOURCES BY ASSESSING MEMBERS' WAGES WHICH OF COURSE IS MONEY
THAT TAXPAYERS THINK IS PAYMENT FOR TEACHING ACTIVIST UNIONTEACHERS ALSO
DONATE TIME TO THESE ANTICHOICE CRUSADES MAYOR SCHUNDLER SAYS NEW
JERSEY'S STATE LEGISLATORS FEAR THE POWER OF THE UNIONS THEY CAN BUS
TEACHERS FROM AROUND THE STATE INTO ONE DISTRICT AND DEFEAT AN INCUMBENT
WITH THEIR DISTORTIONS

STILL HE SAYS THE DESIRE PARENTS AND TAXPAYERS HAVE FOR REAL CHANGE WON'T
BE SQUELCHED EASILY I ASKED A KEY LEADER IN THE LEGISLATURE TO BET AGAINST
MY VIEW THAT SCHOOL CHOICE WILL BE THE NORM IN NEW JERSEY AND MUCH OF THE
COUNTRY IN A DECADE HE WOULDN'T TAKE ME UP ON IT THIS IS GOING TO BE A
BATTLE WORTH WATCHING 9307130130 930713 LETTERS TO THE EDITOR THERE'S
NOTHING LIKE A GOOD CRY

I MUST RESPOND TO DOROTHY RABINOWITZ'S THE CRYBABY ADMINISTRATION LEISURE
& ARTS JUNE 28 IF THERE IS TRULY SHOCK VALUE TO THE PBS FILM THE LIFE OF
LADY BIRD JOHNSON IT CERTAINLY DIDN'T SHOCK ANY SENSE INTO MS RABINOWITZ

I KNOW OF NO GOOD REASON WHY ANY PERSON IN PUBLIC LIFE MUST AT ALL TIMES
REMAIN STOIC THERE IS NOTHING SOFT WEAK BAD OR BIZARRE ABOUT SHOWING
EMOTION IN PUBLIC UNLESS IT IS DONE FOR PURELY THEATRICAL OR MANIPULATIVE
EFFECT IN THESE DAYS OF VIRTUALLY UBIQUITOUS TELEVISION COVERAGE IT SHOULD
NOT BE SURPRISING TO OCCASIONALLY GLIMPSE PUBLIC FIGURES SPONTANEOUSLY
EXPRESSING SOMETHING OTHER THAN COOL DETACHMENT OR HERCULEAN SELFCONTROL
IT SHOWS THEM TO BE HUMAN

MS RABINOWITZ'S UNSTATED MESSAGE SEEMS TO BE THAT THERE IS SOMETHING LESS
THAN MANLY ABOUT OCCASIONALLY SHOWING EMOTION IN PUBLIC IF PRESIDENT
CLINTON BECAME A LITTLE MISTYEYED AFTER JUDGE RUTH BADER GINSBURG'S TRULY
MOVING STATEMENT ABOUT HOW THINGS HAVE CHANGED FOR WOMEN IN AMERICA SINCE
HER MOTHER'S TIME MUST WE RECONSIDER WHETHER WE WANT HIS FINGER ON THE
NUCLEAR BUTTON

MS RABINOWITZ SUGGESTS THAT MORE TEARS HAVE ROLLED DOWN THE PRESIDENTIAL
CHEEK IN THE PAST SIX MONTHS THAN FOR ALL US PRESIDENTS COMBINED SHE
CITES BUT ONE EXAMPLE I'LL CITE THREE GEORGE BUSH WHEN COMMENDING THE
BRAVE MEN AND WOMEN WHO GAVE THEIR LIVES IN THE PERSIAN GULF WAR RICHARD
NIXON THE DAY HE LEFT OFFICE WILLIAM H TAFT BEMOANING THE ENTRY OF TEDDY
ROOSEVELT INTO THE 1912 PRESIDENTIAL CAMPAIGN TR HAD BEEN A CLOSE FRIEND OF
TAFT'S

UNDOUBTEDLY OTHER PRESIDENTS HAVE SHOWN PUBLIC TEARS IN THE PAST THE
DIFFERENCE IS THAT NOBODY THOUGHT TO WRITE AN INTEMPERATE COLUMN ABOUT IT

NO THERE HAS NOT BEEN A TORRENT OF TEARS FROM THE CLINTON ADMINISTRATION
THE ONLY BOOHOOING GOING ON IS THE CROCODILE TEARS OF PEOPLE LIKE MS
RABINOWITZ WHO OBVIOUSLY STILL HAVEN'T GOTTEN OVER 1992 AND NO THERE IS
NOTHING WRONG WITH PUBLIC DISPLAYS OF EMOTION EVEN I NO FAN OF MR NIXON
FELT A LITTLE MISTYEYED WHILE SEEING HIS GRIEF AT HIS WIFE'S PUBLIC
FUNERAL IT WAS REFRESHING TO SEE HIM AS A PERSON FOR ONCE INSTEAD OF A
CARICATURE

SHORTLY BEFORE HE DIED HUBERT H HUMPHREY MADE AN EMOTIONAL ADDRESS TO A
JOINT SESSION OF CONGRESS WHEN HIS WIFE TRIED TO SHIELD HIS TEARS FROM AN
INQUIRING CAMERA HE FACED THE LENS AND SAID A MAN WHO DOESN'T HAVE ANY
TEARS DOESN'T HAVE ANY HEART 9307130129 930713 LETTERS TO THE EDITOR 
 THE DENTIST AND AIDS SOME COLD HARD FACTS

LEST THE THEORETICALLY CORRECT BUT STATISTICALLY INACCURATE STATEMENTS MADE
IN THE JUNE 28 LETTER FROM ROBERT BLAND REGARDING FLORIDA'S LATE DR DAVID
ACER GO UNCHALLENGED WHILE SHEER PERCENTAGES MAY INDICATE THAT A DENTIST OR
PHYSICIAN SERVING A POOL OF 2000 PATIENTS WOULD PROBABLY HAVE EIGHT OR SO
HIVPOSITIVE PATIENTS THE REAL STATISTICS IN DR ACER'S CASE SAY SOMETHING
ELSE ALTOGETHER

DESPITE MR BLAND'S CLAIM THAT THERE ARE NO STATISTICS LINKING DR ACER WITH
THE SIX OF HIS PATIENTS WHO TESTED HIVPOSITIVE RESEARCH CONDUCTED AND/OR
SUPPORTED BY THE US CENTERS FOR DISEASE CONTROL AND PREVENTION SHOW THE
STRAIN OF AIDS VIRUS PLEASE DO NOT USE THE REDUNDANT TERM HIV VIRUS
PRESENT IN DR ACER GENETICALLY MATCHED THOSE OF THE PATIENTS IN QUESTION TO
A LEVEL OF 994 ACCURACY I DO NOT THINK THIS DATA IS A PRODUCT OF ANY
GOVERNMENT OR MEDIA CAMPAIGN TO CONVICT DR ACER BUT SIMPLY COLD HARD
FACT 9307130128 930713 LETTERS TO THE EDITOR THE SAVVY GOLFER KNOWS
HIS MULLIGANS

IT WAS WITH PLEASURE THAT I READ FREDERICK KLEIN'S JUNE 25 ARTICLE
ACKNOWLEDGING THE MULLIGAN THE FREE DRIVE THAT MANY TAKE OFF THE FIRST
TEE AFTER AN ESPECIALLY POOR INITIAL EFFORT AS BEING A MAJOR CONTRIBUTION
OF REAL GOLFERS TO THE SPORT HOWEVER THERE ARE SOME VARIATIONS TO THE
STANDARD MULLIGAN

THE BREAKFAST MULLIGAN AND THE LUNCH MULLIGAN ARE TO BE TAKEN ON THE FIRST
AND 10TH TEES RESPECTIVELY COMING AS THEY DO AFTER AN ASYET UNDIGESTED
MEAL THE FLOATING MULLIGAN IS A ONETIME REPLACEMENT DRIVE OFF ANY OTHER
TEE THEN THERE IS THE PROVISIONAL MULLIGAN WHICH IS A RETRACTABLE FLOATING
VARIETY IN OTHER WORDS IF IT IS WORSE THAN THE ORIGINAL SHOT IT CAN BE
POCKETED FOR LATER USE WHILE ONE PLAYS THE FIRST ALBEIT POOR DRIVE

ONE FINAL POINT TO ENSURE STRICT ADHERENCE TO THE RULES ANY MULLIGAN MUST
BE DECLARED BEFORE STRIKING THE BALL FAIR'S FAIR 9307130126 930713
LETTERS TO THE EDITOR RAVENOUS GOVERNMENT MAY EAT OUR FUTURE

IN REGARD TO PAUL TSONGAS'S JUNE 3 EDITORIAL PAGE ARTICLE THE PATH TO A
ZERO DEFICIT WHY DO POLITICIANS LIKE MR TSONGAS CONTINUE TO SPREAD THE
MYTH THAT THE BUDGET DEFICIT PERSE IS A SERIOUS PROBLEM THE IMPACT OF
FISCAL POLICY ON WELFARE DEPENDS UPON THE EXTENT TO WHICH THE FEDERAL
GOVERNMENT DIVERTS RESOURCES AWAY FROM THE CONTROL OF THE PRIVATE SECTOR
THIS DIVERSION IS BEST MEASURED BY THE PRESENT VALUE OF CURRENT AND FUTURE
GOVERNMENT EXPENDITURES WHICH IS BASICALLY INDEPENDENT OF WHETHER CURRENT
EXPENDITURES ARE FINANCED BY TAXES OR BY BORROWING THUS STATEMENTS SUCH AS
SPENDANDBORROW POLICIES ARE MORE GENERATIONALLY IRRESPONSIBLE THAN
TAXANDSPEND LIBERAL POLICIES AND AMERICANS WANT A SOLUTION TO THE
DEFICIT SO THAT THEY AND THEIR CHILDREN CAN HAVE A DECENT FUTURE ARE
VACUOUS

PEOPLE WHO ARE CONCERNED THAT THE DEFICIT WILL DESTROY THEIR CHILDREN'S
FUTURE NEED ONLY INCREASE THEIR SAVINGS TODAY AND PASS ON THE ACCUMULATED
WEALTH TO THEIR HEIRS A DECREASE IN INHERITANCE TAXES WOULD THUS DO MORE
TO PRESERVE OUR CHILDREN'S FUTURE THAN AN INCREASE IN THE ENERGY TAX
INCREASING TAXES TODAY MERELY TAKES SAVINGS DECISIONS OUT OF PRIVATE HANDS
IT DOES NOTHING TO ADDRESS THE REAL PROBLEM THE FEDERAL GOVERNMENT'S
LARGE AND INCREASING CONSUMPTION OF NATIONAL RESOURCES UNLESS GOVERNMENT
SPENDING IS REDUCED AND INCENTIVES FOR KEEPING SPENDING DOWN LIKE A
LINEITEM VETO ARE ESTABLISHED THE PROSPERITY OF OUR CHILDREN WILL INDEED
BE AT RISK 9307130125 930713 MARKETING & MEDIA ADVERTISING DIET
COKE DECIDES LATEST SLOGAN DOESN'T QUITE TICKLE ITS PALATE  BY
KEVIN GOLDMAN

DIET COKE HAS LOST ITS TASTE FOR TASTE IT ALL THE SLOGAN AD AGENCY LINTAS
COINED FOR THE BRAND LESS THAN SEVEN MONTHS AGO

THE SLOGAN BORN AMID GREAT FANFARE BUT SNIPING AMONG SOME LOCAL COCACOLA
BOTTLERS HAS BEEN QUIETLY PULLED BY THE ATLANTA SOFT DRINK MANUFACTURER
DEEPSIXED WITH IT WAS THE COROLLARY ONE AWESOME CALORIE WHICH WAS PART
OF THE MUCHHYPED DEBUT ON NEW YEAR'S DAY

TASTE IT ALL WAS PLASTERED EVERYWHERE INCLUDING NEWSPAPER AND MAGAZINE
ADVERTISEMENTS IT SERVED AS THE MAIN LYRIC IN A NEW DIET COKE JINGLE IT
WAS PROMINENTLY SHOWN ON CANS AND BOTTLES OF DIET COKE NO MORE THIS WEEK
DIET COKE PACKAGES ARE ROLLING OUT WITH A NEW DESIGN THE DIET COKE LOGO IS
MUCH LARGER AND ANY SIGN OF A SLOGAN HAS DISAPPEARED

THE MOVE IS A SETBACK FOR DIET COKE AND INTERPUBLIC GROUP'S LINTASNEW YORK
THE BRAND'S AD AGENCY SINCE 1982 THEY HAD HOPED TASTE IT ALL WOULD BECOME
THE BASIS FOR A GLOBAL CAMPAIGN THE RETREAT FROM DIET COKE'S MARKETING
EFFORTS COMES AS THE BRAND AND OTHER DIET SOFT DRINKS ARE LOSING MARKET
SHARE TO COMPETITORS INCLUDING ICED TEAS JUICES AND THE FLOOD OF
CARBONATED AND NONFIZZY WATERS LAST YEAR DIET COKE SPENT 607 MILLION ON
ADVERTISING ACCORDING TO LEADING NATIONAL ADVERTISERS

MARKETING EXPERTS SAY DIET COKE'S DUMPING OF TASTE IT ALL AND ONE AWESOME
CALORIE IS HIGHLY UNUSUAL AND UNDERSCORES HOW DESPERATE COKE AND LINTAS ARE
TO FIX A FLAT CAMPAIGN A COKE SPOKESWOMAN SAYS SIX MONTHS ISN'T UNUSUAL
FOR COCACOLA IT ALSO SPOTLIGHTS HOW RISKY IT IS TO DUMP A SEEMINGLY
WINNING SLOGAN IN THE FIRST PLACE DIET COKE HAD USED JUST FOR THE TASTE OF
IT SINCE THE SODA FIRST HIT STORE SHELVES 11 YEARS AGO

MILLER BREWING'S LITE BRAND RECENTLY REVIVED ITS SLOGAN TASTES GREAT LESS
FILLING IN A MODIFIED FORM AFTER THE MISGUIDED IT'S IT AND THAT'S THAT
EFFORT

IN THE CASE OF DIET COKE THE FIRST HINT OF TROUBLE WAS WHEN DIET COKE ADS
DISAPPEARED FROM TELEVISION AND RADIO LINTAS EXECUTIVES ARE HUDDLING TO
DRUM UP A NEW CAMPAIGN BUT INSIDERS SAY THEY HAVEN'T YET SETTLED ON A NEW
STRATEGY AND A REPLACEMENT BUZZ PHRASE

WE'RE GEARING UP AND WORKING TOWARD THE PRESENTATION SAYS TONY
DEGREGORIO CHIEF CREATIVE OFFICER OF LINTAS'S NEW YORK OFFICE HE SAYS HE
ISN'T DISAPPOINTED BY THE SUDDEN DISMISSAL OF THE SLOGAN HIS TEAM CREATED
IT'S COCACOLA'S CHOICE TO DO THAT

SOME INDUSTRY EXECUTIVES SPECULATE THAT ANOTHER LINTAS OFFICIAL WILL BE
BROUGHT IN TO WORK ON THE DIET COKE PRESENTATIONS NAMELY FRANK DEVITO
CURRENTLY CHIEF CREATIVE OFFICER OF LINTASAMERICAS WHO HASN'T BEEN
INVOLVED IN THE EFFORT UP TO NOW BUT MR DEGREGORIO DENIES THAT CONJECTURE
AND MR DEVITO COULDN'T BE REACHED TO COMMENT

A SPOKESWOMAN FOR COCACOLA SAID TASTE IT ALL WAS NEVER INTENDED TO BE A
PERMANENT FIXTURE ON CANS AND BOTTLES OF DIET COKE AND ADDS THAT THE
SLOGAN WILL CONTINUE TO BE USED OUTSIDE THE US IN SUCH MARKETS AS CANADA
EUROPE AND AUSTRALIA

NEVERTHELESS LESS THAN SEVEN MONTHS IS AN UNUSUALLY SHORT TIME FOR A
PACKAGE CHANGE SAYS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES A
CONSULTING FIRM IN GUILFORD CONN A CAN IS AKIN TO A DIET COKE BILLBOARD
ANYTHING YOU PUT ON A CAN OR BOTTLE IS IMPORTANT TO THE SELLING OF THE
PRODUCT THESE DECISIONS AREN'T MADE LIGHTLY AFTER ALL HE POINTS OUT IT
REQUIRES BOTTLERS TO GO TO THE TROUBLE OF MAKING CHANGES IN THEIR PRODUCTION
LINES

THE ACTUAL PACKAGE ON THE SHELF IS THE LAST ADVERTISEMENT A COMPANY HAS TO
GRAB THE CONSUMER SAYS STEPHEN A GREYSER PROFESSOR OF MARKETING AT THE
HARVARD SCHOOL OF BUSINESS THE CAN AND BOTTLE PROBABLY REINFORCED THE
TELEVISION ADS WHICH WEREN'T WELL RECEIVED THE OLD SLOGAN SAID SOMETHING
IT WAS TRUE TO WHAT THE BRAND WAS ALL ABOUT THAT THE PRODUCT TASTED GOOD

WHAT EXACTLY WAS WRONG WITH TASTE IT ALL ANYWAY THE FOLKS AT COKE AND
LINTAS AREN'T SAYING BUT ALLEN A MCCUSKER PRESIDENT OF CANAAN PARISH
GROUP A MARKETING FIRM THEORIZES THAT THE SLOGAN APPEALED TO A NARROW
UPSCALE YUPPIE AUDIENCE INSTEAD OF DRAWING A BROADER MARKET THE IDEA THAT
COMES ACROSS IS I WANT IT ALL IN SPITE OF WHETHER YOU HAVE ANY OR NOT'
HE SAYS

PEPSICO'S RIVAL DIET PEPSI HAS PLACED ITS UBIQUITOUS UHHUH ON CANS AND
HAS NO PLANS TO REMOVE THEM THE UHHUH GIRLS THE TRIO THAT BACKS UP RAY
CHARLES CONTINUE TO CROON AND ARE EVEN STARRING IN THEIR OWN COMMERCIALS
MINUS MR CHARLES

BUT DIET COKE IS LEFT SCRAMBLING WE'LL COME UP WITH A WINNER SAYS
LINTAS'S MR DEGREGORIO I'M NOT NERVOUS ABOUT LOSING THE ACCOUNT WE HAVE
THE CONFIDENCE OF THE CLIENT

THE NBC NETWORK UNVEILED PLANS TO GO INTERACTIVE TESTING AN ADVERTISING
FORMAT THAT WOULD CONNECT ADVERTISERS WITH VIEWERS VIA A TOLLFREE
INFORMATION LINE

STARTING THIS FALL THE NBC VIEWER SERVICE WILL INTRODUCE INTERACTIVE
COMMERCIAL BREAKS AT THE BEGINNING AND END OF THE BREAK AN ANNOUNCER WILL
INVITE VIEWERS TO DIAL A TOLLFREE NUMBER TO RECEIVE ADDITIONAL INFORMATION
SUCH AS CATALOGS VIDEO TAPES OR COUPONS FROM ADVERTISERS WHOSE SPOTS
APPEAR DURING THE BREAKS A LOGO OF THE NBC PEACOCK AND A TELEPHONE WILL
REMAIN ONSCREEN THOUGHOUT THE COMMERCIALS

IF WE CAN CREATE AWARENESS OF THE SYMBOL AND ADVERTISERS ARE COMFORTABLE
USING IT  THEN THERE COULD BE A FULLSCALE ROLLOUT OF THE PROGRAM
SAID ALAN COHEN NBC SENIOR VICE PRESIDENT OF MARKETING

INITIALLY AIMED AT UPSCALE ADULT MALE VIEWERS THE PROGRAM WILL PROBABLY
START DURING SATURDAY AFTERNOON SPORTS EVENTS ACCORDING TO NBC OFFICIALS
NBC A UNIT OF GENERAL ELECTRIC CREATED THE PROGRAM FOR HIGHTECH
ADVERTISERS SUCH AS COMPUTER AND SOFTWARE COMPANIES WHICH HAVE PREVIOUSLY
BEEN A TOUGH SELL FOR THE TRADITIONAL 30 OR 60SECOND NETWORK COMMERCIAL
AUTOMOTIVE COMPANIES ALSO ARE AMONG THE TARGETED ADVERTISERS NOW WE'VE GOT
AN EXTRA REASON TO GO BACK TO AN ADVERTISER WHO MAY HAVE SHUT US OUT
PREVIOUSLY ONE OFFICIAL SAID

NBC PLANS TO MAINTAIN A DATABASE OF CALLERS IT ALSO PLANS TO MAIL A 16PAGE
QUARTERLY PROGRAM GUIDE WITH ADVERTISING CALLED NBC PREVIEW TO VIEWERS
IN ITS DATABASE

FRETTER A LIVONIA MICH APPLIANCE CHAIN PULLED A TELEVISION AD CAMPAIGN
FEATURING REAL PEOPLE TESTIMONIALS OFF THE AIR AFTER THE MASSACHUSETTS
ATTORNEY GENERAL CHARGED THAT IT VIOLATED FEDERAL TRADE COMMISSION
GUIDELINES

THE AD CAMPAIGN WHICH BEGAN BROADCASTING REGIONALLY EARLIER THIS MONTH
FAILED TO INCLUDE AN ONCAMERA DISCLOSURE REQUIRED BY THE FTC WHEN A
NONCELEBRITY IS PAID FOR AN ENDORSEMENT SAID SCOTT HARSHBARGER STATE
ATTORNEY GENERAL IN ADDITION SOME TESTIMONIALS BASHED CIRCUIT CITY ONE OF
FRETTER'S COMPETITORS THE STATE OFFICIAL SAID SOME OF THOSE CLAIMS WERE
UNSUBSTANTIATED

FRETTER SPENT 26 MILLION ON ADVERTISING IN 1992 ACCORDING TO LEADING
NATIONAL ADVERTISERS THE ADS WERE CREATED BY AGENCY YAFFE & CO OF
SOUTHFIELD MICH

IN ADDITION CUSTOMERS HAD BEEN PROMISED 700 FOR THEIR ENDORSEMENTS SAID
EDGAR DWORSKY ASSISTANT ATTORNEY GENERAL IN MASSACHUSETTS BUT CONTRACTS
SENT OUT AFTER THE TAPING CALLED FOR PAYMENTS OF JUST 49575 MR DWORSKY
SAID THAT THE AGENCY HAS AGREED TO PAY THE ENDORSERS THE DIFFERENCE

FRETTER DIDN'T RETURN CALLS SEEKING A COMMENT A SPOKESMAN FOR YAFFE CALLED
THE INCIDENT REGRETTABLE BUT NOTED THAT THE COMPANY AND AGENCY HAD
RESPONDED PROMPTLY TO THE OFFICIALS' CONCERNS THE PARTIES ARE MEETING NEXT
WEEK TO WORK OUT THE DETAILS OF THE SETTLEMENT INCLUDING A POSSIBLE FINE
MR DWORSKY SAID

AMERICAN EXPRESS AMERICAN EXPRESS IS USING BASEBALL HALLOFFAMERS IN
SEVERAL ADS THAT ARE SET TO BE BROADCAST DURING THE MAJOR LEAGUE ALLSTAR
GAME TONIGHT HANK AARON ERNIE BANKS AL KALINE STAN MUSIAL AND BROOKS
ROBINSON ARE APPEARING IN THE SPOTS FROM OGILVY & MATHER NEW YORK THE ADS
INCLUDE A PLUG FOR COOPERSTOWN NY WHERE THE HALL OF FAME IS LOCATED
INFORMING VIEWERS THAT THE AMERICAN EXPRESS CARD IS WELCOME THERE AND OTHER
PLACES WHERE YOU DON'T HAVE TO BE A BIG HITTER TO GET NOTICED 9307130123
930713 LAW LEGAL BEAT BROKERS' JOB BIAS CASES MUST GO TO
ARBITRATION STATE COURT RULES  BY WADE LAMBERT AND JONATHAN M
MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL

IN A VICTORY FOR THE SECURITIES INDUSTRY NEW YORK STATE'S HIGHEST COURT
RULED THAT BROKERS WHO ALLEGE RACE OR SEX DISCRIMINATION ON THE JOB MUST
TAKE THEIR CLAIMS TO ARBITRATION RATHER THAN TO COURT

INDUSTRY DEFENDANTS TYPICALLY PREFER TO AVOID JURY TRIALS FEARING THAT
JURIES WILL SIDE WITH THE PERSON WHO IS SUING BUT SOME EMPLOYEES CLAIM THAT
THE INDUSTRY'S ARBITRATION PANELS TEND TO FAVOR SECURITIES FIRMS OVER
INDIVIDUAL CLAIMANTS

IN ITS DECISION THE COURT UPHELD THE SWEEPING NATURE OF THE STANDARD
ARBITRATION AGREEMENT THAT WALL STREET PROFESSIONALS ARE REQUIRED TO SIGN
WITH THEIR EMPLOYERS SEVERAL FEDERAL COURTS HAVE ALSO RULED THAT
DISCRIMINATION CLAIMS FALL UNDER THE ARBITRATION AGREEMENTS WHICH COVER
EMPLOYMENT DISPUTES BUT ATTORNEYS WHO REPRESENT PEOPLE WITH JOB
DISCRIMINATION CLAIMS HAD HOPED THE NEW YORK COURT WOULD CARVE OUT AN
EXCEPTION FOR CASES FILED IN STATE COURT

THE NEW YORK DECISION CAME IN THE COMBINED CASES OF A FORMER KIDDER PEABODY
GROUP INC BROKER ALPHONSE FLETCHER JR AND A FORMER GOLDMAN SACHS & CO
INVESTMENT BANKER RITA M REID

MR FLETCHER WHO SAYS HE GENERATED 25 MILLION IN TRADING PROFITS FOR
KIDDER IN 1990 ACCUSED THE FIRM OF COMPENSATING HIM UNFAIRLY BECAUSE HE
IS BLACK MS REID ALLEGED THAT SHE WAS PASSED OVER FOR PROMOTIONS AND
EVENTUALLY LOST HER JOB BECAUSE OF SEX DISCRIMINATION

IN ITS 32 DECISION THE NEW YORK COURT OF APPEALS EXPRESSED CONCERN ABOUT
INVIDIOUS DISCRIMINATION BUT THE COURT SAID THAT IN LIGHT OF A 1991 US
SUPREME COURT DECISION IT WOULDN'T EXEMPT SEX AND RACE DISCRIMINATION
CLAIMS FROM THE ARBITRATION AGREEMENTS THE DECISION REACHED ON FRIDAY
REVERSES A 1979 RULING BY THE STATE HIGH COURT THAT DISCRIMINATION CLAIMS
COULDN'T BE FORCED INTO ARBITRATION

THE US SUPREME COURT DECISION DEALT WITH AGE DISCRIMINATION IN THAT CASE
HOWEVER THE SUPREME COURT SAID THE SECURITIESINDUSTRY AGREEMENTS COVER ALL
DISPUTES THAT AREN'T SPECIFICALLY EXEMPTED BY FEDERAL LAW THE NEW YORK HIGH
COURT REJECTED THE FORMER KIDDER PEABODY BROKER'S ARGUMENTS THAT CONGRESS
HAD MEANT TO EXEMPT CLAIMS OF RACIAL DISCRIMINATION

IN A DISSENT COURT OF APPEALS JUDGE GEORGE BUNDY SMITH SHARPLY DISAGREED
WITH THE MAJORITY AND SAID IT INCORRECTLY APPLIED THE SUPREME COURT RULING
JUDGE SMITH SAID THE MAJORITY'S DECISION ABANDONS THE STATUTORY AND
CONSTITUTIONAL MANDATE TO RESOLVE CLAIMS OF RACIAL DISCRIMINATION IN THE
COURTS AND IN ACCORDANCE WITH THE EQUAL PROTECTION OF THE LAWS

INDUSTRY ATTORNEYS PRAISED THE DECISION THE CASE COULD HAVE OPENED THE WAY
TO SIGNIFICANT LITIGATION IF THE COURT HAD RULED THE OTHER WAY THIS
DECISION CONFIRMS THAT NEW YORK STATE COURTS WILL ENFORCE THE ARBITRATION
COMMITMENTS OF SECURITIES INDUSTRY EMPLOYEES IN THE SAME MANNER AS THE
FEDERAL COURTS SAID THEODORE O ROGERS JR AN ATTORNEY FOR GOLDMAN SACHS
AT NEW YORK LAW FIRM SULLIVAN & CROMWELL THE DECISION IS PARTICULARLY
SIGNIFICANT BECAUSE SO MANY SECURITIES FIRMS AND EMPLOYEES ARE LOCATED IN
NEW YORK

STEPHEN E TISMAN AN ATTORNEY FOR MS REID AT NEW YORK LAW FIRM SHIFF &
TISMAN SAID THE DECISION IS A DISAPPOINTMENT BUT IT DOESN'T DEAL WITH THE
MERITS OF THE CASE IF WE HAVE TO TAKE IT TO ARBITRATION WE WILL MR
TISMAN SAID IT WAS UNLIKELY THAT HIS CLIENT WOULD ASK THE US SUPREME COURT
TO REVIEW THE NEW YORK COURT'S DECISION

A KIDDER PEABODY SPOKESMAN SAID THE FIRM ADHERES TO THE PRINCIPLE OF EQUAL
EMPLOYMENT OPPORTUNITY IN ITS EMPLOYMENT DECISIONS AND STRONGLY BELIEVES
THAT MR FLETCHER WASN'T DISCRIMINATED AGAINST LAST YEAR IN A SEPARATE
CONTRACT DISPUTE ARBITRATORS RULED THAT KIDDER A UNIT OF GENERAL ELECTRIC
CO HAD TO PAY MR FLETCHER 13 MILLION

MR FLETCHER'S ATTORNEY STANLEY S ARKIN OF NEW YORK FIRM CHADBOURNE &
PARKE SAID HE IS CONSIDERING ASKING THE US SUPREME COURT TO REVIEW THE
DECISION ON THE GROUND THAT RACIAL BIAS CLAIMS ARE SO STRONGLY PROTECTED
UNDER NEW YORK LAW THAT THEY CAN'T BE FORCED INTO ARBITRATION

MR ARKIN SAID HE EXPECTS THAT MR FLETCHER WILL WIN IN ARBITRATION BUT HE
SAID HE WAS SKEPTICAL OF THE SECURITIES INDUSTRY'S ARBITRATION PROCESS ON
QUESTIONS OF RACE AND SEX DISCRIMINATION MAYBE IN 10 YEARS OR 20 YEARS
THE ARBITRATION MECHANISM ON WALL STREET WILL BE SENSITIVE TO THESE ISSUES
HE SAID

JUDITH VLADECK WHOSE NEW YORK LAW FIRM VLADECK WALDMAN ELIAS &
ENGELHARD FILED A BRIEF IN THE CASE IN SUPPORT OF EMPLOYEE RIGHTS SAID
ARBITRATION IS CLEARLY INADEQUATE IT HAS TAKEN YEARS TO DEVELOP A BODY OF
LAW IN JOB DISCRIMINATION CASES WE DON'T HAVE PANELS OF ARBITRATORS WHO
UNDERSTAND THE ISSUES

LIBYA HAS RETAINED A FORMER CHIEF LAWYER FOR THE US STATE DEPARTMENT TO
HELP RESOLVE LAWSUITS STEMMING FROM THE EXPLOSION OF PAN AM FLIGHT 103 OVER
LOCKERBIE SCOTLAND

LIBYA IS NOT A PARTY TO ANY OF THE CIVIL OR CRIMINAL LITIGATION BUT THE
COUNTRY HAS FACED INTERNATIONAL SANCTIONS SINCE 1991 WHEN TWO LIBYAN
NATIONALS WERE INDICTED IN THE US ON CHARGES THAT THEY CAUSED THE 1988
DISASTER WHICH KILLED 270 PEOPLE

THE SANCTIONS WERE DESIGNED TO GET LIBYA TO TURN OVER THE TWO MEN WHICH IT
HAS SO FAR REFUSED TO DO THE RECENT DECISION TO RETAIN ABRAHAM D SOFAER A
FORMER COUNSELOR TO THE STATE DEPARTMENT MAY BE PART OF AN EFFORT TO GET
THOSE SANCTIONS LIFTED

IN A CRYPTIC STATEMENT MR SOFAER WHO IS A PARTNER IN THE WASHINGTON
OFFICE OF LAW FIRM HUGHES HUBBARD & REED SAID THE FIRM WILL ADVISE THE
GOVERNMENT OF LIBYA WITH A VIEW TO DEVELOPING SOLUTIONS FOR THE DIFFERENCES
WHICH EXIST IN THESE LITIGATIONS AND WHICH ARE ACCEPTABLE TO ALL PARTIES
WE WILL NOT LITIGATE ACTIVELY IN DEFENSE OF LIBYA OR THE INDIVIDUAL CRIMINAL
DEFENDANTS

MR SOFAER SAID IN THE STATEMENT THAT THE DECISION TO RETAIN HIM DOESN'T
MEAN THAT LIBYA OR THE CRIMINAL DEFENDANTS HAVE DECIDED TO APPEAR IN COURT
IN THE US AS A SOVEREIGN STATE LIBYA GENERALLY CAN'T BE SUED OR
PROSECUTED IN US COURTS

BECAUSE OF THE SANCTIONS HUGHES HUBBARD HAD TO GET A SPECIAL LICENSE FROM
THE TREASURY DEPARTMENT TO DO WORK FOR LIBYA JOHN M TOWNSEND A PARTNER
WITH MR SOFAER SAID THE LICENSE SPECIFICALLY LIMITS THE WORK HUGHES
HUBBARD DOES FOR LIBYA TO PROVIDING ADVICE ON US LAW WHAT THE FOREIGN
POLICY IMPLICATIONS ARE BEYOND THAT IS BEYOND OUR SCOPE HE SAID

THE PAN AM EXPLOSION SPAWNED NUMEROUS CIVIL LAWSUITS LAST YEAR A FEDERAL
JURY IN BROOKLYN NY FOUND PAN AM GROSSLY NEGLIGENT IN ALLOWING THE BOMB
ABOARD THE PLANE THAT RULING OPENED THE WAY FOR FAMILIES OF THE VICTIMS TO
SEEK DAMAGES FROM DEFUNCT PAN AMERICAN WORLD AIRWAYS AND ITS INSURERS THE
INSURERS ARE APPEALING THE RULING

THE CHICAGO STOCK EXCHANGE SAID IT HAS RETAINED THE CHICAGO OFFICE OF
MILWAUKEEBASED FOLEY & LARDNER TO TAKE CHARGE OF THE EXCHANGE'S LEGAL
MATTERS EFFECTIVE JULY 19

FOLEY PARTNER GEORGE T SIMON WHO HAS REPRESENTED THE EXCHANGE AS AN
OUTSIDE COUNSEL SINCE 1981 WAS NAMED THE EXCHANGE'S GENERAL COUNSEL
CURRENT INHOUSE GENERAL COUNSEL J CRAIG LONG WILL JOIN FOLEY AS A PARTNER
AND SPEND ABOUT HALF OF HIS TIME AT THE EXCHANGE AN EXCHANGE SPOKESWOMAN
SAID NO INHOUSE LAWYERS WILL LOSE THEIR JOBS UNDER THE NEW ARRANGEMENT

MR SIMON SAID THAT THE CHANGE WAS AN EFFICIENCY MEASURE AND WAS UNRELATED
TO THE EXCHANGE'S RECENT DIFFICULTIES CONCERNING FLAWED CLEARING PROCEDURES
ON SHARES TRADED LATE IN THE DAY LAST YEAR THE EXCHANGE SETTLED A
SECURITIES AND EXCHANGE COMMISSION LAWSUIT RELATED TO THE CLEARING PROBLEM
WITHOUT ADMITTING WRONGDOING

WHO'S NEWS PHILIP A LACOVARA WHO STEPPED DOWN IN FEBRUARY AS MORGAN
STANLEY & CO MANAGING DIRECTOR AND GENERAL COUNSEL JOINED MAYER BROWN &
PLATT AS A PARTNER MR LACOVARA WILL WORK IN THE INTERNATIONAL LAW FIRM'S
NEW YORK AND WASHINGTON OFFICES ON LITIGATION MATTERS ALSO JOINING MAYER
BROWN IS THOMAS R HOOD FORMER COUNSELOR TO THE COMMISSIONER OF THE
INTERNAL REVENUE SERVICE HE WILL BE IN THE LAW FIRM'S NEW YORK OFFICE
9307130121 930713 HAULING JUNK SCIENCE OUT OF THE COURTROOM  BY
DAVID BERNSTEIN

THE SUPREME COURT JUST DEALT A POTENTIALLY LETHAL BLOW TO JUNK SCIENCE
EVIDENCE IN THE COURTROOM IN DAUBERT V MERRELL DOW PHARMACEUTICALS WHICH
INVOLVED CLAIMS THAT THE MORNING SICKNESS DRUG BENDECTIN CAUSES BIRTH
DEFECTS THE COURT REJECTED THE LETITALLIN PHILOSOPHY ADVOCATED BY THE
PLAINTIFFS' ATTORNEYS THE COURT INSTEAD EMPHASIZED THAT THE FEDERAL
DISTRICT COURTS MUST ACT AS GATEKEEPERS AND EXCLUDE EVIDENCE THAT IS NOT
SCIENTIFICALLY RELIABLE

IN THE SHORT RUN THE OPINION WILL PROBABLY CREATE CONFUSION IN THE COURTROOM
AS DISTRICT COURT JUDGES ATTEMPT TO INTERPRET THE DAUBERT DECISION AND AS
PLAINTIFFS SHOP AROUND FOR SYMPATHETIC JURISDICTIONS IN THE LONG RUN
HOWEVER AS STANDARDS ARE ESTABLISHED IT MEANS THAT JUNK SCIENCE WILL HAVE
A FAR HARDER TIME MAKING IT TO COURT

THE DAUBERT DECISION IS TECHNICALLY A VICTORY FOR THE PLAINTIFFS THE LOWER
COURT HAD USED THE VENERABLE COMMON LAW FRYE RULE TO EXCLUDE THE PLAINTIFFS'
PROFFERED EXPERT EVIDENCE THAT BENDECTIN CAUSED THEIR BIRTH DEFECTS UNDER
FRYE NOVEL SCIENTIFIC EVIDENCE IS ADMISSIBLE ONLY WHEN IT HAS RECEIVED
GENERAL ACCEPTANCE IN THE RELEVANT SCIENTIFIC COMMUNITY THE SUPREME COURT
FOUND THAT FRYE WAS SUPERSEDED BY THE FEDERAL RULES OF EVIDENCE WHICH
PROVIDE THAT AN EXPERT MAY TESTIFY REGARDING SCIENTIFIC KNOWLEDGE IF IT WILL
ASSIST THE JURY

WHILE DAUBERT DOOMED THE FRYE RULE IN ITS PURE FORM AT THE SAME TIME IT
REINFORCED MANY OF THE CONSIDERATIONS THAT LED MOST COURTS TO ADOPT THAT
RULE FOR EXAMPLE IT STRESSED THAT DISTRICT COURTS MUST EXCLUDE ANY EXPERT
SCIENTIFIC TESTIMONY THAT DOES NOT REFLECT SCIENTIFIC KNOWLEDGE AND NOTED
THAT THE GENERALACCEPTANCE TEST STILL HAS A BEARING ON THE ADMISSIBILITY
OF EVIDENCE THE COURT ALSO PROMULGATED SENSIBLE GUIDELINES FOR SCREENING
SCIENTIFIC EVIDENCE UNDER RULE 702 OF THE FEDERAL RULES OF EVIDENCE

WHILE MOST JUDICIAL ATTENTION WILL PROBABLY BE FOCUSED ON THESE EXPLICIT
GUIDELINES OTHER ASPECTS OF THE OPINION SHOULD ALSO SERVE AS SIGNIFICANT
BARRIERS TO JUNKSCIENCE TESTIMONY THE COURT FOR EXAMPLE STRESSED THAT
UNDER RULE 702 EXPERT TESTIMONY MUST HAVE A VALID SCIENTIFIC CONNECTION TO
THE ISSUE BEFORE THE COURT

SCIENTIFIC VALIDITY FOR ONE PURPOSE THE COURT NOTED IS NOT NECESSARILY
SCIENTIFIC VALIDITY FOR OTHER PURPOSES OBVIOUS AS THIS POINT MAY SEEM IT
DOESN'T NECESSARILY APPLY IN COURTROOMS THESE DAYS PLAINTIFFS IN TOXIC TORT
SUITS FOR EXAMPLE HAVE OFTEN ATTEMPTED TO PROVE CAUSATION OF DISEASE FROM
LOWLEVEL EXPOSURE TO A SUBSTANCE BY RELYING ON THE RESULTS OF HIGHDOSE
ANIMAL STUDIES USED IN SPECULATIVE RISK RESEARCH

THE COURT ALSO NOTED THAT RULE 702 IS NOT THE ONLY RULE OF EVIDENCE
GOVERNING THE ADMISSIBILITY OF EXPERT TESTIMONY THE COURT STATED THAT
EXPERT TESTIMONY SHOULD BE SUBJECTED TO STRICT SCRUTINY UNDER RULE 403 THAT
RULE PROVIDES THAT A COURT SHOULD EXCLUDE TESTIMONY WHEN ITS EVIDENTIARY
VALUE IS SUBSTANTIALLY OUTWEIGHED BY ITS PREJUDICIAL EFFECT ON THE JURY

FOR EXAMPLE OTHERWISE ADMISSIBLE EVIDENCE SHOULD BE EXCLUDED UNDER 403 IF
THE EXPERT'S OPINION IGNORES MORE PERSUASIVE EVIDENCE THAT WOULD UNDERMINE
THE OPINION SIMILARLY AN EXPERT SHOULD BE PERMITTED TO IDENTIFY AN AGENT
AS THE CAUSE OF AN INJURY OR ILLNESS ONLY IF HE HAS STUDIED AND DISCOUNTED
ALTERNATIVE CAUSES TO DESCRIBE A SEQUENCE OF EVENTS IS NOT TO PROVE A CAUSE
AND AN EFFECT A PROPER APPLICATION OF RULE 403 WOULD EXCLUDE SUCH EVIDENCE

THE STRICT SCRUTINY OF SCIENTIFIC EVIDENCE FORESEEN BY THE DAUBERT MAJORITY
IS UNLIKELY TO TAKE EFFECT QUICKLY SOME JUDGES WHO ARE UNCOMFORTABLE IN THE
GATEKEEPER ROLE WILL NO DOUBT REMAIN LAX IN REVIEWING SCIENTIFIC EVIDENCE
RATHER THAN FOCUS ON THE OVERARCHING CONCERN IN THE DAUBERT OPINION THAT
EVIDENCE BE SCIENTIFICALLY RELIABLE THESE JUDGES WILL RELY ON THE SUPREME
COURT'S ADMONITION THAT ITS ANNOUNCED GUIDELINES ARE FLEXIBLE AND THAT
SOME SHAKY EVIDENCE WILL STILL BE ADMISSIBLE

ATTORNEYS REPRESENTING PLAINTIFFS IN CLAIMS BASED ON JUNK SCIENCE WILL
ATTEMPT TO FILE THEIR CASES IN JURISDICTIONS THAT ARE LIKELY TO INTERPRET
DAUBERT IN SUCH A WAY AS TO ALLOW THEIR EVIDENCE TO GO TO A JURY THE THIRD
CIRCUIT IN PHILADELPHIA FOR EXAMPLE HAS BEEN NOTORIOUSLY WILLING TO ADMIT
JUNKSCIENCE EVIDENCE

IN MOST COURTS HOWEVER DAUBERT WILL LIKELY ACCELERATE THE TREND TOWARD
STRICTER SCRUTINY OF SCIENTIFIC EVIDENCE THAT SAID IF THE STAKES ARE HIGH
ENOUGH AS THEY OFTEN ARE IN TOXIC TORT LITIGATION THE PROSPECT OF A STRING
OF ADVERSE RULINGS WILL NOT NECESSARILY DETER CONTINGENCYFEE ATTORNEYS A
SINGLE LARGE VICTORY BASED ON A SPECULATIVE CLAIM CAN MORE THAN OFFSET A
NUMBER OF LOSSES IF THE UNCERTAINTY DESTINED TO BE CREATED BY DAUBERT IN
THE DISTRICT COURTS IS NOT RESOLVED BY SOMETHING APPROACHING CONSENSUS IN
THE COURTS OF APPEALS THE SUPREME COURT MAY FIND ITSELF REVISITING THE
JUNKSCIENCE ISSUE IN THREE OR FOUR YEARS

MR BERNSTEIN A WASHINGTON ATTORNEY IS COEDITOR OF PHANTOM RISK
SCIENTIFIC EVIDENCE AND THE LAW MIT 9307130120 930713 WHAT'S NEWS 
WORLDWIDE

THE UN MOUNTED A NEW ATTACK IN SOMALIA PROVOKING MOB VIOLENCE

US COBRA HELICOPTER GUNSHIPS UNDER UN COMMAND FIRED CANNON AND MISSILES
AT A RENEGADE CLAN LEADER'S LOGISTICAL CENTER IN MOGADISHU ANGERED BY THAT
ATTACK A SOMALI MOB ATTACKED WESTERN JOURNALISTS KILLING AT LEAST TWO
SUPPORTERS OF CLAN LEADER AIDID CLAIMED 73 SOMALIS DIED AND 200 WERE WOUNDED
IN THE 17MINUTE ASSAULT BUT UN TROOPS SAID THEY COUNTED 13 DEAD SOMALIS
AND 11 WOUNDED

ITALY CALLED FOR THE SUSPENSION OF UN COMBAT OPERATIONS IN SOMALIA AND
SAID THE AIMS OF THE PEACEKEEPING MISSION THERE SHOULD BE REVIEWED

FLOODS FORCED THE EVACUATION OF THOUSANDS OF PEOPLE FROM DES MOINES IOWA
WHERE THE MAYOR DECLARED A STATE OF EMERGENCY AND URGED FIRMS TO GO SLOW IN
RESUMING OPERATIONS BECAUSE OF THE LACK OF DRINKING WATER AND RELATED
PROBLEMS A BAN ON MISSISSIPPI SHIPPING WAS EXTENDED SOUTH TO THE MOUTH OF
THE OHIO RIVER AT CAIRO ILL

A MAJOR EARTHQUAKE HIT NORTHERN JAPAN LEVELING A SMALL HOTEL SETTING
HUNDREDS OF HOUSES ABLAZE AND TRIGGERING TIDAL WAVES THAT SWEPT DOZENS OF
HOMES INTO THE SEA MORE THAN 30 PEOPLE WERE KILLED AND 104 OTHERS WERE
MISSING LOCAL OFFICIALS SAID THE QUAKE MEASURED 78 ON THE RICHTER SCALE
AND WAS CENTERED WEST OF HOKKAIDO

JAPANESE LEADERS WARNED AHEAD OF SUNDAY'S VOTE THAT AN END TO THE GOVERNING
PARTY'S 38YEAR MONOPOLY ON POWER COULD UNLEASH THE KIND OF CHAOS AND CRIME
THAT EXIST IN THE US ITALY AND THE PHILIPPINES

VICE PRESIDENT GORE TRIED TO IMPROVE THE ADMINISTRATION'S RELATIONS WITH
BLACKS TELLING THE NAACP IT WAS TIME FOR CIVIL RIGHTS GAINS AFTER A DECADE
FIGHTING THE RADICAL RIGHT BUT THE NAACP'S CHAIRMAN SAID AT THE GROUP'S
MEETING THAT CLINTON KICKED US IN OUR TEETH IN NOT KEEPING THE NOMINATION
OF LANI GUINIER FOR THE JUSTICE DEPARTMENT

AT LEAST 12 PEOPLE WERE KILLED AND 15 WOUNDED WHEN A MORTAR BOMB SLAMMED
INTO A CROWD WAITING AT A COMMUNAL WATER PUMP IN SARAJEVO ACCORDING TO
HOSPITAL REPORTS TO THE SOUTH OF THE BOSNIAN CAPITAL SERB MILITARY FORCES
WERE SAID TO HAVE OVERRUN AND RECAPTURED THE STRATEGIC MUSLIM TOWN OF
TRNOVO

A TOP UN ARMS OFFICIAL PLANS TO LEAVE FOR BAGHDAD TODAY IN A BID TO DEFUSE
A CONFRONTATION OVER INSTALLING MONITORING CAMERAS AT TWO MISSILE BASES
DIPLOMATS SAID BUT ROLF EKEUS HEAD OF THE UN PANEL IN CHARGE OF
DISMANTLING IRAQI WEAPONS INTENDS TO WARN IRAQ THAT THE UN'S RIGHT TO
MONITOR THE SITES ISN'T NEGOTIABLE THE OFFICIALS SAID

NORTH KOREA ACCUSED PRESIDENT CLINTON OF TRYING TO INCITE PYONGYANG WITH
THREATS OF WAR AND CHARGED THAT JAPAN PLANS TO DEVELOP NUCLEAR ARMS AT THE
SAME TIME NORTH KOREA HANDED OVER WHAT IT SAID WERE THE REMAINS OF 17 US
SOLDIERS KILLED IN THE KOREAN WAR THE US AND NORTH KOREA ARE TO RESUME
NUCLEAR TALKS TOMORROW

YELTSIN WON A KEY POLITICAL VICTORY WHEN RUSSIA'S CONSTITUTIONAL CONVENTION
OVERWHELMINGLY APPROVED THE FINAL DRAFT OF LEGISLATION THAT COULD BECOME THE
COUNTRY'S NEW CONSTITUTION THE PRESIDENT'S DRAFT WOULD LEAD TO ABOLITION OF
THE CONGRESS OF PEOPLE'S DEPUTIES WHICH HAS RESISTED MANY OF HIS MARKET
REFORM PLANS

RUSSIA HAS AGREED TO HONOR A CONTRACT AND SELL ROCKET ENGINES AND TECHNOLOGY
TO INDIA DESPITE OBJECTIONS FROM THE US AN INDIAN OFFICIAL SAID RUSSIA'S
FOREIGN MINISTRY AND THE STATERUN AGENCY INVOLVED IN THE TRANSACTION
REFUSED TO COMMENT

A CIA OFFICER IN SUDAN APPROVED A PERMIT FOR SHEIK OMAR ABDELRAHMAN TO
ENTER THE US IN 1990 NOT KNOWING THE EGYPTIAN CLERIC WAS INELIGIBLE
BECAUSE OF ALLEGED TERRORIST TIES A US OFFICIAL SAID THE QUESTION OF THE
SHEIK'S ENTRY AROSE WHEN HIS FOLLOWERS WERE ARRESTED AFTER THE WORLD TRADE
CENTER BLAST HE WAS JAILED THIS MONTH IN NEW YORK

AN ADVISORY COMMISSION SAID MOST OF THE 384 PRINCIPAL CIVIL WAR BATTLEFIELDS
ARE THREATENED BY COMMERCIAL DEVELOPMENT OR POLLUTION AND PANEL MEMBERS
URGED THE FEDERAL GOVERNMENT TO LEAD A 93 MILLION PRESERVATION EFFORT

NIGERIA'S MILITARY RULER ORDERED NEW PRESIDENTIAL ELECTIONS TO REPLACE THE
BALLOT THAT HE ANNULLED LAST MONTH GEN BABANGIDA SCHEDULED THE JULY 31
VOTE AFTER THE COUNTRY'S TWO POLITICAL PARTIES FAILED TO AGREE ON HIS
PROPOSALS FOR A TRANSFER OF POWER TO A CIVILIAN PRESIDENT 9307130119
930713 HALLIBURTON DEBT REGISTRATION

DALLAS HALLIBURTON CO SAID IT FILED A SHELF REGISTRATION WITH THE
SECURITIES AND EXCHANGE COMMISSION COVERING 500 MILLION IN DEBT SECURITIES

THE ENERGY SERVICES AND ENGINEERING CONCERN SAID PROCEEDS FROM ANY OFFERING
WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING REPAYMENT OF DEBT
WORKING CAPITAL CAPITAL EXPENDITURES AND ACQUISITIONS 9307130118 930713
BALKAN JUDGMENTS WORLD AGAIN CONFRONTS MORAL ISSUES INVOLVED IN
WARCRIMES TRIALS  SOME FEEL UN DELAYS PEACE IN FORMER YUGOSLAVIA
 BY PURSUING ATROCITIES  ANGER JUMPSTARTS JUSTICE  BY CARLA
ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO UNSPEAKABLE CRIMES HAVE BEEN COMMITTED IN BOSNIA AND THROUGHOUT
THE FORMER YUGOSLAVIA BUT WILL THERE EVER BE ANY JUSTICE

EVIDENCE IS BEING CATALOGED HERE IN A FEW SMALL ROOMS AT DEPAUL UNIVERSITY'S
COLLEGE OF LAW HUNCHED OVER THEIR KEYBOARDS FOUR RESEARCHERS PORE OVER
DOCUMENTS AND THEN METHODICALLY TYPE INTO COMPUTERS EVERY AVAILABLE ACCOUNT
OF HUMAN CRUELTY AND SUFFERING

FROM VISEGRAD COMES THE TESTIMONY OF A GIRL WHO SAYS SHE WAS RAPED BY
MEMBERS OF THE WHITE EAGLES A SERBIAN PARAMILITARY GROUP FROM SREBRENICA
A LIST OF 86 MEN AND WOMEN REPORTED MISSING BY NEIGHBORS AND FRIENDS ARE
THERE TWO TOWNS SREENICA AND SREBRENICA OR HAS THIS BEEN MISSPELLED
ASKS SECONDYEAR LAW STUDENT JOHN GEIRINGER SEARCHING A MAP ON THE WALL

THE NUMBERS BEING ENTERED ARE AS CHILLING AS THE NARRATIVES SOME 25000
VICTIMS OF RAPE TORTURE MURDER AND ETHNIC CLEANSING MOST OF THE
PERPETRATORS ARE SERBS THOUGH CROATS AND MUSLIMS ALSO ARE ON THE LIST OF
SUSPECTS

CHERIF BASSIOUNI A PROMINENT EXPERT IN INTERNATIONAL LAW WHO BEGAN THE
PROJECT FOR THE UNITED NATIONS MORE THAN SIX MONTHS AGO HOPES THE DATA WILL
LAY THE FOUNDATION FOR AN INTERNATIONAL WARCRIMES TRIBUNAL THE FIRST SINCE
NAZI LEADERS WERE TRIED AT NUREMBERG AND JAPANESE LEADERS IN TOKYO AFTER
WORLD WAR II

SO FAR WHAT WE HAVE ARE ALLEGATIONS SOME IN INCREDIBLE DETAIL SAYS PROF
BASSIOUNI BUT CORROBORATION CAN BE FOUND INDICTMENTS ISSUED AND CRIMINALS
BROUGHT TO TRIAL HE SAYS WHAT IT REQUIRES IS WILL

WHETHER THAT WILL EXISTS HOWEVER IS A MATTER OF CONSIDERABLE DEBATE THE
INTERNATIONAL COMMUNITY HAS A TROUBLING HISTORY IN YUGOSLAVIA OF FAILING TO
LIVE UP TO EITHER ITS PROMISES OR ITS THREATS BUT HAVING BEGUN THE
EXTRAORDINARY PROCESS OF WARCRIMES PROSECUTIONS THE WORLD ALREADY HAS
RENDERED A POWERFUL MORAL JUDGMENT IF THE TRIBUNAL IS SIDETRACKED NOW THAT
WILL SEND A MESSAGE OF IMPUNITY TO FUTURE OFFENDERS AND FURTHER DAMAGE THE
UN'S CREDIBILITY

THE UN SECURITY COUNCIL IN MAY ORDERED THE ESTABLISHMENT OF A WARCRIMES
TRIBUNAL BASED IN THE HAGUE TO PROSECUTE ATROCITIES IN THE FORMER
YUGOSLAVIA YET VITAL STEPS REMAIN BEFORE TRIALS CAN BEGIN A CHIEF
PROSECUTOR MUST BE NAMED THE 56YEAROLD EGYPTIANBORN MR BASSIOUNI IS A
DARKHORSE CANDIDATE IN THE HIGHLY POLITICIZED PROCESS THAT COULD BE
COMPLETED AS EARLY AS THIS MONTH UN MEMBER STATES ARE TO FILE NOMINATIONS
FOR THE TRIBUNAL'S 11 JUDGES BY AUGUST INDICTMENTS COULD BE ISSUED BY EARLY
NEXT YEAR UNDER THE PLAN

DESPITE THESE PREPARATIONS HOWEVER THE PROPOSED TRIBUNAL IS DISMISSED BY
MANY IN THE INTERNATIONAL COMMUNITY AS ONE MORE EMPTY GESTURE ON BOSNIA AS
MOST OF THE APPARENT CRIMINALS ALSO ARE THE VICTORS IN YUGOSLAVIA'S CIVIL
WARS DIPLOMATS ASK WHO WOULD EVER TURN THEM IN WHAT IS TO STOP POLITICAL
LEADERS FROM NEGOTIATING THEIR OWN AMNESTY AS PART OF A LESS THAN HONORABLE
PEACE AND WHY WOULD THE US AND THE REST OF THE INTERNATIONAL COMMUNITY
WHICH HAVE DONE SO LITTLE TO PREVENT THE CRIMES WANT TO BE REMINDED OF
THEIR INACTION

MY GREATEST FEAR IS THAT LIKE EVERYTHING ELSE ABOUT BOSNIA POLITICAL
EXPEDIENCE WILL PREVAIL SAYS VENEZUELA'S UN AMBASSADOR DIEGO ARRIA

YET US AMBASSADOR TO THE UN MADELEINE ALBRIGHT WHO HAS CHAMPIONED THE
TRIBUNAL BELIEVES PROSECUTIONS WILL PROCEED STATES WILL BE REQUIRED TO
ARREST AND HAND OVER TO THE TRIBUNAL ANYONE INDICTED OR FACE INTERNATIONAL
SANCTIONS SHE SAYS AND SUSPECTS WHO RESIST WILL BE TRAPPED IN THEIR
COUNTRIES FOR THE REST OF THEIR LIVES

NOBODY THINKS IT WILL BE EASY NOBODY THINKS ENOUGH IS BEING DONE  BUT
THE THING I'VE LEARNED ABOUT THE UN IS THAT ONCE A PROCESS LIKE THIS GETS
STARTED IT'S HARD TO TURN IT OFF AMBASSADOR ALBRIGHT SAYS AND THOUGH
PRESIDENT CLINTON AND HIS AIDES ARE TRYING THEIR BEST THESE DAYS TO KEEP
BOSNIA OUT OF THE POLICY SPOTLIGHT THE ADMINISTRATION IS ACTIVELY PROMOTING
THE WARCRIMES TRIBUNAL THE US INFORMATION AGENCY HAS BEGUN DISTRIBUTING
TO AMERICAN EMBASSIES AROUND THE WORLD A 50MINUTE DOCUMENTARY ON
YUGOSLAVIA'S HORRORS AND THE NEED FOR A FORMAL ACCOUNTING

SINCE NUREMBERG THE IDEA OF INTERNATIONAL WARCRIMES TRIALS HAS BEEN RAISED
PRELIMINARILY MANY TIMES CAMBODIA'S POL POT UGANDA'S IDI AMIN AND IRAQ'S
SADDAM HUSSEIN ALL WERE LIKELY DEFENDANTS ALTHOUGH DOMESTIC PROCEEDINGS
HAVE BEEN HELD IN A NUMBER OF COUNTRIES UNDER NATIONAL LAWS INCLUDING THE
US TRIAL OF ARMY LT WILLIAM CALLEY FOR MURDERS OF VIETNAMESE CIVILIANS
THE INTERNATIONAL COMMUNITY ALWAYS SHIED AWAY FROM WHAT AMOUNTS TO A GLOBAL
INDICTMENT

THE IDEA MAKES COUNTRIES NERVOUS SAYS ARYEH NEIER FORMER EXECUTIVE
DIRECTOR OF HUMAN RIGHTS WATCH ULTIMATELY THEY FEAR THAT EITHER THEY WILL
BE PLACED IN THE DOCK OR THEIR ALLIES AND FRIENDS WILL

IN BOSNIA THAT WARINESS WAS REINFORCED BY CONSIDERATIONS OF POLITICAL
EXPEDIENCY RELUCTANT TO INTERVENE MILITARILY THE WEST CONTINUED TO PLACE
ITS HOPES ON A DIPLOMATIC SETTLEMENT AND INDICTING POLITICAL LEADERS IN THE
MIDST OF NEGOTIATIONS COULD CERTAINLY HAVE HAD A CHILLING EFFECT

NEVERTHELESS THE PROCESS WAS JUMPSTARTED LATE LAST YEAR WHEN OUTGOING
SECRETARY OF STATE LAWRENCE EAGLEBURGER A LONGTIME PROPONENT OF
NEGOTIATIONS SUDDENLY LOST PATIENCE AT A GENEVA PEACE CONFERENCE HE
ACCUSED SERBIAN PRESIDENT SLOBODAN MILOSEVIC BOSNIAN SERB LEADER RADOVAN
KARADZIC AND BOSNIAN SERB MILITIA COMMANDER RATHO MLADIC ALONG WITH SEVEN
OTHERS OF RESPONSIBILITY FOR CRIMES AGAINST HUMANITY

WHAT TRIGGERED ME WAS A CONVERSATION I HAD WITH HOLOCAUST SURVIVOR AND
NOBEL LAUREATE ELIE WIESEL MR EAGLEBURGER SAYS HE PERSUADED ME THAT
THESE PEOPLE NEEDED TO BE NAMED AND THAT THIS CONDUCT COULD NOT GO ON IT
WAS MY LAST OPPORTUNITY TO DO IT AND I DID IT ON MY OWN

THE REACTION IN THE ROOM SAYS MR EAGLEBURGER WAS DEAD SILENCE FROM
AMERICA'S CLOSEST ALLIES AND SUBSEQUENT CRITICISM FROM INTERNATIONAL
NEGOTIATOR LORD OWEN WHO MADE IT CLEAR THAT HE CONSIDERED MY REMARKS
UNHELPFUL REPORTERS NOTED THAT IN AN IRONIC MOMENT AS MR EAGLEBURGER
DEPARTED THE CONFERENCE ROOM HE PASSED BY MR KARADZIC WHO ALSO WAS IN
GENEVA FOR THE PEACE TALKS MR EAGLEBURGER SAYS HE DOESN'T REMEMBER THE
NEARENCOUNTER BUT IT DOESN'T REALLY MATTER HE SAYS I WOULDN'T HAVE
TALKED TO THE SON OF A BITCH ANYWAY

THE EAGLEBURGER INITIATIVE HELPED PROD THE UN WHICH HAD ALREADY BEGUN TO
MOVE TENTATIVELY TOWARD SOME TYPE OF ACCOUNTING IN OCTOBER THE SECURITY
COUNCIL ESTABLISHED AN EXPERTS COMMISSION WITH PROF BASSIOUNI AND FOUR
OTHER JUDICIAL EXPERTS TO INVESTIGATE AND PRODUCE EVIDENCE OF GRAVE
BREACHES OF INTERNATIONAL LAW LACKING SUPPORT AS SPECIFIED IN THE GENEVA
CONVENTIONS WAR CRIMES AND CRIMES AGAINST HUMANITY INCLUDE THE WANTON
KILLING OF CIVILIANS TORTURE RAPE THE DESTRUCTION OF RELIGIOUS SITES
INDISCRIMINATE BOMBING AND MISTREATMENT OF PRISONERS OF WAR

THE COMMISSION'S JOB HASN'T BEEN EASY IT WAS GIVEN NEITHER INVESTIGATORS
NOR SUBPOENA POWER TO GATHER EVIDENCE AND DESPITE STRONG VERBAL
ENDORSEMENTS MANY NATIONS INCLUDING THE US AND THE UN BUREAUCRACY
HAVE BEEN SLOW TO PROVIDE SUPPORT

THE COMMISSION'S FEW ATTEMPTS TO MOUNT FIELD INVESTIGATIONS HAVE SUFFERED
MOST IN DECEMBER THE COMMISSION SENT FOUR FORENSIC EXPERTS FROM THE
BOSTONBASED PHYSICIANS FOR HUMAN RIGHTS TO INVESTIGATE A REPORT OF A
MASSACRE NEAR THE SERBIANHELD TOWN OF VUKOVAR IN EASTERN CROATIA ACCORDING
TO ONE SURVIVOR 175 CROATIAN HOSPITAL PATIENTS HAD BEEN SHOT IN A FARM
FIELD THEIR BODIES DUMPED INTO A MASS GRAVE

A PRELIMINARY SURVEY OF THE SITE TURNED UP 11 BODIES AND AN INDICATION THAT
A MASSACRE HAD INDEED TAKEN PLACE ACCORDING TO ERIC STOVER EXECUTIVE
DIRECTOR OF PHYSICIANS FOR HUMAN RIGHTS HE BELIEVES THAT AS MANY AS 200
PEOPLE MAY HAVE DIED IN A CLEARING TO THE RIGHT OF THE GRAVES WE ALSO
FOUND SPENT AK47 CARTRIDGES  THE PATTERN YOU'D EXPECT TO FIND IF A
LINE OF EXECUTIONERS WERE FIRING HE SAYS

BUT TO ACCUMULATE PHYSICAL EVIDENCE STRONG ENOUGH TO STAND UP IN COURT THE
INVESTIGATORS ESTIMATED THAT THEY WOULD NEED ABOUT THREE WEEKS OF FIELD
WORK ALSO NEEDED WOULD BE A BACKHOE REFRIGERATION UNITS TO STORE EXHUMED
BODIES BASIC HOUSING COMBATENGINEERING SUPPORT AND MILITARY PROTECTION

SEVEN MONTHS LATER THE REQUESTED SUPPORT AND PROTECTION HASN'T BEEN
SUPPLIED AND THE PROJECT HAS STALLED IN JUNE THE CLINTON ADMINISTRATION
TURNED DOWN A UN REQUEST TO PROVIDE COMBAT ENGINEERS FOR THE PROJECT AFTER
DEFENSE SECRETARY LES ASPIN DECIDED THAT THE MISSION WOULD BE TOO DANGEROUS
FOR US TROOPS INSTEAD THE ADMINISTRATION OFFERED TO PROVIDE 180000 IN
SUPPLIES

THE EXPERT COMMISSION'S MOST ACTIVE EFFORT MAY BE THE DEPAUL UNIVERSITY
DATABASE PROJECT BUT WITHOUT THEIR OWN FIELD INVESTIGATORS MR BASSIOUNI
AND HIS RESEARCHERS HAVE BEEN COMPELLED TO DRAW THEIR INFORMATION FROM NEWS
ACCOUNTS REPORTS BY HUMANRIGHTS ORGANIZATIONS AND OFTENSANITIZED
GOVERNMENT DOCUMENTS

THOUGH THE US HAS PROVIDED SOME OF THE MOST DETAILED AND HORRIFYING
ACCOUNTS OF ATROCITIES MR BASSIOUNI SAYS THE SOURCING IS FLIMSY THE
REPORTS ARE IDENTIFIED AS COMING FROM NEWSPAPERS TELEVISION OR UNSPECIFIED
US GOVERNMENT SOURCES WITH NO SUPPORTING EVIDENCE PROVIDED MR BASSIOUNI
HAS HAD PROBLEMS PRYING INFORMATION FROM BOTH US AND UN MILITARY
SOURCES US OFFICIALS SAY THEY ARE TRYING TO FIGURE OUT HOW TO MAKE MORE
INDEPTH INFORMATION AVAILABLE WITHOUT JEOPARDIZING INTELLIGENCE SOURCES

IT IS PLANNED THAT THE TRIBUNAL WILL HAVE BETTER RESOURCES INCLUDING
SUBPOENA POWERS AND THE THREAT OF SECURITY COUNCIL SANCTIONS TO BACK UP ITS
DEMANDS IT ALSO WILL HAVE A STAFF OF ABOUT 100 SAY UN SOURCES INCLUDING
22 FIELD INVESTIGATORS AND PROSECUTORS BY CONTRAST AT NUREMBERG THERE WERE
ABOUT 1000 INVESTIGATORS AND PROSECUTORS TO TRY 22 DEFENDANTS

THERE STILL WILL BE CONSTRAINTS WHATEVER THE ULTIMATE SETTLEMENT IN BOSNIA
THE UN WON'T BE AN OCCUPYING FORCE AND WON'T ACQUIRE THE PAPER TRAIL OF
THOUSANDS OF DOCUMENTS DETAILING NAZI CRIMES SEIZED BY THE ALLIES AFTER
WORLD WAR II

IT IS CONCEIVABLE THAT THIS TIME THE COURT WILL NEVER GET ANY OF THE WORST
OFFENDERS TO APPEAR TO AVOID ANY SUGGESTION OF SHOW TRIALS THE SECURITY
COUNCIL STIPULATED THAT NO ACCUSED WOULD BE TRIED IN ABSENTIA

BUT PERHAPS THE BIGGEST QUESTION IS WHAT THE SECURITY COUNCIL WILL DO IF ALL
SIDES TO THE CONFLICT AGREE TO AN AMNESTY AS PART OF A PEACE SETTLEMENT
WILL THE PROSECUTOR CONTINUE THE INVESTIGATIONS AND WILL THE SECURITY
COUNCIL BACK UP INDICTMENTS WITH SANCTIONS IF NEEDED EVEN AT THE RISK OF
DISRUPTING A PEACE ACCORD

IT IS AT THAT MOMENT THAT THE PROSECUTOR COULD MAKE THE BIGGEST DIFFERENCE
A STRONG MORAL VOICE A KEEN PROSECUTORIAL MIND AND COMPELLING EVIDENCE
COULD STIFFEN THE SECURITY COUNCIL'S BACKBONE AND PERSUADE IT OR IF
NECESSARY PUBLICLY SHAME IT INTO MOVING FORWARD SAYS MR NEIER THE FORMER
HUMAN RIGHTS WATCH HEAD IT IS ONE THING FOR A HUMANRIGHTS GROUP TO
DENOUNCE ANY ATTEMPT TO DIVERT THE TRIBUNAL HE SAYS IT WOULD BE FAR
DIFFERENT COMING FROM THE PROSECUTOR

IN THE END THE TRIBUNAL MAY BE FORCED TO SETTLE FOR AN EL SALVADORSTYLE
TRUTH COMMISSION NAMING NAMES AND DETAILING CRIMES BUT WITH NO LEGAL
SANCTION

FOR NOW THE RACE FOR THE JOB OF PROSECUTOR IS IN FULL SWING AT THE UN THE
CLINTON ADMINISTRATION HAS DECIDED THAT IT WOULD BE BETTER NOT TO HAVE AN
AMERICAN PROSECUTOR SINCE SOME OF THE COMBATANTS ALREADY ACCUSE THE US OF
TAKING SIDES INSTEAD THE US MAY BACK ONE OF SEVERAL LATIN AMERICAN
CANDIDATES INCLUDING A PROSECUTOR WHO HELPED CONVICT ARGENTINA'S MILITARY
LEADERSHIP OF HUMANRIGHTS ABUSES AND ONE WHO HAS TAKEN ON DRUG CARTELS THE
CLINTON ADMINISTRATION IS HOPING TO SEE A US JUDGE ON THE TRIBUNAL AND IS
SEARCHING OUT WOMAN CANDIDATES

CANADA HAS PUBLICLY NOMINATED CHRISTOPHER AMERASINGHE AN EXPERIENCED
CRIMINAL PROSECUTOR AND EXPERT IN INTERNATIONAL LAW SEVERAL NONALIGNED
SECURITY COUNCIL MEMBERS MEANWHILE ARE BACKING MR BASSIOUNI WHOSE
PRINCIPAL WEAKNESS MAY BE A LACK OF PROSECUTORIAL EXPERIENCE

VENEZUELA'S AMBASSADOR ARRIA WHO IS BACKING MR BASSIOUNI CAUTIONS THAT
FORCES CAN BE EXPECTED TO TRY TO UNDERCUT THE PROCESS THE IDEAL PROSECUTOR
MUST BE SOMEONE WHO WON'T GIVE IN TO POLITICAL PRESSURE HE SAYS I'M NOT
SURE THAT EVERYONE ON THE COUNCIL WANTS SOMEONE SO INDEPENDENT
9307130117 930713 ANDREA SIGNS PACT FOR PHONE DEVICE STOCK SOARS 33
  BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK STOCK MARKET HIGHFLIER ANDREA ELECTRONICS CORP ISSUED THE FIRST
CONCRETE DETAILS OF ITS PLANS TO SELL DEVICES DESIGNED TO FILTER OUT
BACKGROUND NOISE ON PAY PHONES AND THE COMPANY'S SHARES SOARED 33 ON THE
NEWS

BUT THE LATEST ANNOUNCEMENT STOPPED SHORT OF SAYING ANDREA HAS A FIRM
CUSTOMER FOR THE PRODUCT

NONETHELESS ANDREA SHARES WHICH DIDN'T OPEN FOR TRADING UNTIL 3 PM EDT
SOARED 9625 A SHARE TO CLOSE AT 3850 A SHARE IN AMERICAN STOCK EXCHANGE
COMPOSITE TRADING IN THE PAST YEAR THE STOCK HAS TRADED AS HIGH AS 5375
A SHARE AND AS LOW AS 1375 A SHARE AFTER ADJUSTING FOR A RECENT 5FOR1
SPLIT AMID SPECULATION THAT ANDREA'S PAYPHONE DEVICE IS COMMERCIALLY
VIABLE

ANDREA SAID IT SIGNED A THREEYEAR AGREEMENT GIVING TECHNOLOGY SERVICE GROUP
INC LANSDALE PA THE RIGHT TO DISTRIBUTE TWO OF ANDREA'S ACTIVE NOISE
CANCELLATION KITS TO THE SEVEN REGIONAL BELL COMPANIES TECHNOLOGY SERVICE
ANDREA SAID REFURBISHES AND MANUFACTURES PUBLIC TELEPHONES ALTHOUGH
OFFICIALS OF CLOSELY HELD TECHNOLOGY SERVICE WERE TRAVELING AND COULDN'T BE
CONTACTED A SECRETARY SAID SHE CONFIRMED WITH CHAIRMAN ROBERT BAKER THAT
THE AGREEMENT HAD BEEN REACHED

ANDREA SAID THAT TO RETAIN THE DISTRIBUTION RIGHTS TECHNOLOGY SERVICE IS
REQUIRED TO BUY AT LEAST 10 MILLION OF THE DEVICES DURING THE AGREEMENT'S
THREEYEAR TERM

THE ANNOUNCEMENT ALSO SAID ANDREA IS INTRODUCING SIMILAR DEVICES FOR
BUSINESS AND RESIDENTIAL PHONES

A SPOKESMAN FOR NEW YORK TELEPHONE CO A UNIT OF NYNEX CORP SAID
TECHNOLOGY SERVICE IS ONE OF THE COMPANIES THAT IT USES TO REFURBISH PUBLIC
PHONES BUT HE ADDED THAT REFURBISHING WOULD NOT INCLUDE THE INSTALLATION OF
ANY NEW TECHNOLOGY SUCH AS A NOISECANCELLATION DEVICE

ANDREA WHICH IN 1992 HAD SALES OF 34 MILLION AND A NET LOSS OF 690000
DEMONSTRATED ITS NOISEREDUCTION DEVICE AT TRADE SHOWS IN NOVEMBER AND APRIL
AND AT ITS ANNUAL MEETING IN MAY BUT IT HASN'T ANNOUNCED ANY SALES OF THE
PRODUCT OR SPECIFIC INTEREST FROM PHONE COMPANIES

THE COMPANY RECENTLY ANNOUNCED THAT THE SECURITIES AND EXCHANGE COMMISSION
WAS CONDUCTING AN INFORMAL INQUIRY RELATED TO THE TRADING OF ITS STOCK
BUT ADDED THAT NO FORMAL INVESTIGATION HAS BEGUN PRIOR TO THAT THE
AMERICAN STOCK EXCHANGE SAYING IT WANTED TO TEMPER SPECULATION IN ANDREA
SHARES BARRED INVESTORS FROM BUYING THE STOCK USING BORROWED MONEY
9307130115 930713 A UN VOTE THAT SHOULD NEVER HAVE HAPPENED  BY
JOHN R BOLTON

SOMETHING HIGHLY UNUSUAL HAPPENED IN THE UNITED NATIONS SECURITY COUNCIL ON
JUNE 29 THE US LOST A VOTE A DRAFT RESOLUTION TO EXEMPT THE BOSNIAN
GOVERNMENT FROM AN ARMS EMBARGO PREVIOUSLY IMPOSED ON ALL OF FORMER
YUGOSLAVIA FAILED BECAUSE IT DID NOT RECEIVE THE NINE AFFIRMATIVE VOTES
REQUIRED BY THE UN CHARTER SIX NATIONS THE US AND FIVE NONALIGNED
STATES VOTED IN FAVOR OF THE RESOLUTION THE REMAINING NINE INCLUDING THE
OTHER FOUR PERMANENT MEMBERS OF THE COUNCIL ABSTAINED DRAFT RESOLUTIONS
CAN OF COURSE BE VETOED BY ONE OF THE PERM FIVE BUT IT IS EXTREMELY
RARE FOR A DRAFT TO LOSE MERELY FOR THE LACK OF NINE VOTES AS DID THIS ONE
ON BOSNIA

THERE ARE THREE FAILURES HERE A FAILURE OF AMERICAN LEADERSHIP A FAILURE
OF THE PROCESS BY WHICH THE PERM FIVE HAVE CONDUCTED THEIR AFFAIRS SINCE
1988 AND A FAILURE OF THE SECURITY COUNCIL AS AN INSTITUTION

FIRST THIS WAS AN AMERICAN FAILURE BECAUSE THE US DID NOT LEAD THERE
WERE CREDIBLE PRESS REPORTS THAT THE US WAS NOT EVEN PRESSING OTHER
SECURITY COUNCIL MEMBERS TO SUPPORT REPEAL OF THE BOSNIAN ARMS EMBARGO EVEN
MORE DISTURBING ARE THE PRESS ACCOUNTS THAT SAID THE US WAS NOT LOBBYING
BECAUSE IT EXPECTED TO LOSE THE VOTE SUCH A FORMULA ENSURES THE WORST OF
ALL WORLDS A CONTENTIOUS AND DIVISIVE ISSUE BECOMES PUBLIC AND THEN BY
LACK OF EFFORT THE VOTE IS LOST I CAN FULLY UNDERSTAND THE DESIRE OF SOME
SECURITY COUNCIL MEMBERS TO HAVE THE EUROPEANS IN PARTICULAR STAND UP AND BE
COUNTED ON BOSNIA BUT THE COUNCIL IS A PLACE FOR ACTION NOT GESTURES

BY CONTRAST RUSSIA BRITAIN AND FRANCE WHICH ALL WANT TO KEEP THE ARMS
EMBARGO IN PLACE WERE VIGOROUSLY ARGUING TO AVOID ANY VOTE AT ALL THAT
IS WHAT THE US SHOULD HAVE BEEN DOING IF THE VOTES TO LIFT THE ARMS
EMBARGO WERE NOT THERE THE US SHOULD HAVE TAKEN THE LEAD IN CONVINCING
THE OTHERS THAT NO COUNCIL DEBATE OR VOTE SHOULD TAKE PLACE IN SHORT A
VOTE SHOULD HAVE BEEN TAKEN ONLY WHEN THE US WAS CERTAIN THAT ITS POSITION
WOULD PREVAIL

WE HAVE FACED SIMILAR SITUATIONS IN THE PAST DURING THE GULF CRISIS WE
ENCOUNTERED NUMEROUS OBSTRUCTIONIST TACTICS FROM IRAQ AND ITS SURROGATES
WHICH REPEATEDLY TRIED TO PLACE BEFORE THE SECURITY COUNCIL RESOLUTIONS
CONDEMNING ONE OR ANOTHER ALLEGED ISRAELI MISDEED IN THE OCCUPIED
TERRITORIES THE US UNIFORMLY OPPOSED THESE EFFORTS TO PREVENT ANY DAMAGE
TO THE INTERNATIONAL COALITION ASSEMBLED BY PRESIDENT BUSH AND SECRETARY OF
STATE JAMES BAKER THE US WAS ABLE TO CONVINCE THE OTHER COUNCIL MEMBERS
THAT AN OPEN SPLIT IN THE COUNCIL WOULD SERVE NO ONE'S INTEREST IT WAS
NEVER EASY AND IT WAS OFTEN UNPLEASANT BUT WE DID IT NONETHELESS

SECOND THE VOTE ON BOSNIA WAS A FAILURE OF THE USUALLY RELIABLE PERM FIVE
THAT COULD HAVE SERIOUS IMPLICATIONS FOR THE FUTURE BEGINNING WITH EFFORTS
TO ESTABLISH A CEASEFIRE IN THE IRANIRAQ WAR IN 1988 THE FIVE PERMANENT
MEMBERS HAVE DEVELOPED A CONSULTATIVE PROCESS TO HANDLE THE COUNCIL'S WORK
THAT USUALLY RESULTS IN AGREEMENT THIS PERM FIVE PROCESS IS A WAY FOR
THOSE MEMBERS WITH A VETO TO REACH AGREEMENT ON THE SUBSTANCE AND TEXT OF
DRAFT RESOLUTIONS BEFORE PRESENTING THE DRAFTS TO THE FULL COUNCIL BUT THIS
PROCESS WAS NOT FOLLOWED IN THE CASE OF BOSNIA

ENHANCED PERM FIVE COOPERATION INITIALLY SPRANG FROM NEW THINKING IN
SOVIET FOREIGN POLICY UNDER NEW THINKING THE SOVIETS STROVE TO ACT LIKE
NORMAL NATIONS BASING THEIR FOREIGN POLICY ON LEGITIMATE SOVIET INTERESTS
RATHER THAN SEEING EVERYTHING THROUGH THE DISTORTING PRISM OF COMMUNIST
IDEOLOGY HOW TRAGIC IT IS IN THE CASE OF BOSNIA THEREFORE THAT THE US
IS SPLIT NOT ONLY FROM BRITAIN AND FRANCE BUT ALSO FROM RUSSIA WHERE NEW
THINKING HAS STRONG DOMESTIC OPPOSITION

WHILE THERE ARE TIMES AND REASONS TO SKIP THE PERM FIVE PROCESS AND GO
DIRECTLY TO THE ENTIRE COUNCIL BY AND LARGE THE PROCESS IS A REASONABLE AND
PRUDENT WAY TO PROCEED MOREOVER PERM FIVE UNANIMITY SAYS SOMETHING
IMPORTANT TO THE TARGETS OF RESOLUTIONS AS THE ONLY FIVE DECLARED NUCLEAR
POWERS SINCE WORLD WAR II THE PERMANENT MEMBERS POSSESS THE ULTIMATE
SANCTION FOR ANY VIOLATION OF THE INTERNATIONAL ORDER

THIRD THIS WAS A FAILURE OF THE SECURITY COUNCIL BECAUSE ITS ALLIMPORTANT
SOLIDARITY WAS SQUANDERED THE COUNCIL'S INABILITY TO FUNCTION EFFECTIVELY
DURING MUCH OF ITS HISTORY CASTS GRAVE DOUBTS ON ITS RAISON D'ETRE ALTHOUGH
THE PERM FIVE ARE UNDERSTANDABLY THE ENGINE THE 10 NONPERMANENT MEMBERS ARE
CRITICAL TO COUNCIL SUCCESS A SECURITY COUNCIL VOTE DOES NOT HAVE TO BE
UNANIMOUS TO SEND A MESSAGE BUT IT IS A MATTER OF BASIC POLITICS THAT THE
MORE AFFIRMATIVE VOTES ON A GIVEN RESOLUTION THE GREATER THE IMPACT OF THE
MESSAGE ESPECIALLY WITH BROAD GEOGRAPHIC DISTRIBUTION

WHAT ARE SERBIA'S MASTERS IN BELGRADE THINKING NOW AFTER THIS FAILED VOTE
ON BOSNIA ARE THEY MORE OR LESS WORRIED ABOUT WHAT THE UN MIGHT DO HOW
ARE THE WORLD'S ISLAMIC NATIONS REACTING TO THIS PUBLIC HUMILIATION SIMPLY
ASKING THOSE QUESTIONS ANSWERS THEM THE COUNCIL AS A WHOLE SHOULD HAVE
REALIZED THAT A LOSING VOTE WAS A PROFOUND WOUND TO AN INSTITUTION TRYING TO
NURSE ITSELF BACK TO HEALTH THIS SAID COUNCIL FAILURE AND PERM FIVE
FAILURE STEM FROM A FAILURE OF THE US TO ASSUME ITS PROPER LEADERSHIP ROLE
AT THE UN

I HAVE NO IDEA WHY THE CLINTON ADMINISTRATION ALLOWED THIS VOTE TO HAPPEN
ONE THEORY IS THAT IT SIMPLY DID NOT WISH TO OPPOSE NONALIGNED INSISTENCE
THAT A VOTE BE TAKEN INDEED BEFORE THE SECURITY COUNCIL VOTE ONE BBC
RADIO REPORTER OBSERVED THAT THE NONALIGNED MOVEMENT HAS FOUND ITS VOICE
AGAIN IF TRUE THIS IS NOT A HAPPY EVENT THE NONALIGNED MOVEMENT IS A
COLD WAR RELIC THAT DOES NOT NEED REVIVING THE HEYDAY OF THE NONALIGNED WAS
IN THE LATE UNLAMENTED 1970S SHOULD AMERICAN FOREIGN POLICY REFLECT THOSE
YEARS OF DECLINE AND MALAISE

MR BOLTON WHO WAS ASSISTANT SECRETARY OF STATE FOR INTERNATIONAL
ORGANIZATIONS FROM 1989 TO 1993 IS A FELLOW AT THE MANHATTAN INSTITUTE
9307130114 930713 YOUR MONEY MATTERS VARIABLE ANNUITY BUYERS WARNED 
TO CHECK THE UNDERLYING FUNDS  BY ELLEN E SCHULTZ STAFF REPORTER
OF THE WALL STREET JOURNAL

ATTENTION INVESTORS TEACHERS PROFESSORS HOSPITAL WORKERS SMALLCOMPANY
EMPLOYEES

IT IS CRUCIAL FOR ANYONE WHO HAS A VARIABLE ANNUITY OR IS CONSIDERING
INVESTING IN ONE TO CHECK THE PERFORMANCE OF THE UNDERLYING FUNDS IN THE
ANNUITY CONTRACT

A VARIABLE ANNUITY IS A TAXDEFERRED CONTRACT THAT CONTAINS A HANDFUL OF
MUTUAL FUNDTYPE ACCOUNTS CONTRACT HOLDERS ALLOCATE THEIR MONEY AMONG
STOCK BOND OR CASH INVESTMENTS

BUT UNLIKE MUTUAL FUND INVESTORS WHO CAN EASILY MOVE THEIR MONEY FROM ONE
FUND FAMILY TO ANOTHER IF THEY DON'T LIKE THE RESULTS VARIABLE ANNUITY
INVESTORS ARE LOCKED IN MONEY TAKEN OUT WILL FACE INCOME TAXES A 10
FEDERAL TAX IF YOU'RE UNDER AGE 59 1/2 AND OFTEN SURRENDER PENALTIES AS
WELL

ALSO UNLIKE MUTUAL FUND INVESTORS SOMEONE WITH A VARIABLE ANNUITY IS
LIMITED TO THE HANDFUL OF INVESTMENT FUNDS AVAILABLE IN THEIR CONTRACT SO
THOSE CHOICES HAD BETTER BE GOOD IF MOST OF THE FUNDS ARE POOR PERFORMERS
YOUR RETURNS WILL BE SEVERELY ERODED SAYS JENNIFER STRICKLAND EDITOR OF
MORNINGSTAR INC'S VARIABLE ANNUITY REPORT

INDIVIDUAL INVESTORS ARE PUTTING BILLIONS OF DOLLARS INTO VARIABLE ANNUITIES
BECAUSE THEY'RE ONE OF THE LAST TAX SHELTERS AROUND EARNINGS ON MONEY
INVESTED ISN'T TAXED UNTIL IT IS TAKEN OUT AND WITH LOW INTEREST RATES
INVESTORS ALSO LIKE THE OPPORTUNITY TO EARN RETURNS HIGHER THAN MONEY MARKET
ACCOUNTS OR CERTIFICATES OF DEPOSIT

MEANWHILE TEACHERS AND OTHER EMPLOYEES HAVE ALREADY CONTRIBUTED BILLIONS OF
DOLLARS TO VARIABLE ANNUITIES IN THEIR 403B PLANS WHICH ARE SIMILAR TO
THE 401K RETIREMENT PLANS OFFERED BY MANY CORPORATE EMPLOYERS ALTOGETHER
VARIABLE ANNUITIES CONTAIN MORE THAN 115 BILLION IN ASSETS

WHETHER YOU OWN AN INDIVIDUAL VARIABLE ANNUITY CONTRACT OR HAVE VARIABLE
ANNUITIES IN YOUR 403B OR OTHER RETIREMENT PLAN HERE'S A WAY TO TELL
WHETHER YOU'VE GOT A GOOD QUALITY PRODUCT OR A DOG

START BY LOOKING AT THE PERFORMANCE OF THE AVAILABLE FUNDS IN THE CONTRACT
AND COMPARE THEM WITH THE AVERAGE RETURNS FOR THEIR INVESTMENT CATEGORY FOR
EXAMPLE OVER THE PAST THREE YEARS GROWTH STOCK FUNDS RETURNED AN AVERAGE
OF 1074 ANNUALLY ACCORDING TO MORNINGSTAR IN COMPARISON THE GROWTH
STOCK FUND IN IDS FLEXIBLE ANNUITY RETURNED 1129 WHICH IS ABOVE AVERAGE

IF YOUR ANNUITY COMPANY DOESN'T REPORT RETURNS THIS WAY ASK IT TO PROVIDE
AVERAGE ANNUAL RETURNS FOR THE PAST THREEYEAR PERIOD AND MAKE SURE YOU GET
NUMBERS AFTER EXPENSES HAVE BEEN DEDUCTED FROM THE RESULTS A RESPONSIBLE
INSURANCE PROFESSIONAL WILL BE GLAD TO HELP YOU COMPARE THE RETURNS ON YOUR
VARIABLE ANNUITY ACCOUNTS WITH THE MORNINGSTAR AVERAGES

BECAUSE YOU'RE LIMITED TO THE FUNDS IN THE CONTRACT YOU WOULD PROBABLY
PREFER A VARIABLE ANNUITY THAT HAS A LOT OF ABOVEAVERAGE PERFORMING FUND
ACCOUNTS TO IDENTIFY STANDOUTS MORNINGSTAR LOOKED AT HOW MANY OF THE FUNDS
IN EACH VARIABLE ANNUITY CONTRACT HAD ABOVEAVERAGE PERFORMANCE IN THE THREE
YEARS ENDING JUNE 30 1993 IT FOUND THAT ALL OF THE FUND ACCOUNTS IN IDS
FLEXIBLE MASSACHUSETTS MUTUAL FLEX V AND THE GIANT COLLEGE RETIREMENT
EQUITY FUND WERE ABOVE AVERAGE

INVESTORS SHOULD PAY SPECIAL ATTENTION TO THE PERFORMANCE OF FUNDS THAT
INVEST IN STOCKS AGGRESSIVE GROWTH GROWTH AND GROWTH AND INCOME AND THE
BASIC FUNDS THAT INCLUDE BONDS BALANCED CORPORATE BONDS AND GOVERNMENT
BONDS BECAUSE OF THE EXTRA EXPENSES OF VARIABLE ANNUITIES IT DOESN'T MAKE
SENSE TO INVEST IN MONEYMARKET ACCOUNTS OR OTHER LOWYIELDING SELECTIONS

WHILE LOOKING AT THE PROPORTION OF FUNDS WITH ABOVEAVERAGE PERFORMANCE CAN
GIVE YOU A ROUGH IDEA OF HOW A PARTICULAR VARIABLE ANNUITY STACKS UP AGAINST
OTHERS LOOKING MORE CLOSELY AT EACH FUND ACCOUNT CAN PROVIDE VALUABLE
INFORMATION

FOR EXAMPLE EIGHT OF THE 14 FUNDS IN FRANKLIN VALUEMARK II HAVE PERFORMANCE
IN THE TOP THIRD OF THEIR CATEGORIES BUT MOST OF THOSE STELLAR PERFORMERS
ARE IN FIXEDINCOME ACCOUNTS THAT'S GREAT FOR INVESTORS SEEKING
FIXEDINCOME ACCOUNTS ASSUMING THEY ARE WILLING TO PAY HIGHERTHANAVERAGE
FEES FOR THE CONTRACT WHICH CAN TOTAL MORE THAN 2 ANNUALLY

AN INVESTOR SEEKING A CONTRACT WITH STRONG STOCK ACCOUNTS MIGHT TAKE A LOOK
AT PRUDENTIAL DISCOVERY PLUS OR ITS CLONE FOR TEACHERS AND RETIREMENT
PLANS PRUDENTIAL VIP86 OVER THE PAST THREE YEARS ITS COMMON STOCK
ACCOUNT HAS AVERAGED 1386 ANNUALLY WHILE ITS ACCOUNT THAT INVESTS IN
STOCKS WITH HIGH DIVIDENDS HAS AVERAGED 1491 ANNUALLY MOST OF ITS BOND
ACCOUNTS ARE ALSO ABOVE AVERAGE

ANOTHER IMPORTANT AREA TO COMPARE IS COST ANNUAL COSTS INCLUDE A CONTRACT
CHARGE WHICH AVERAGES 125 AND THE INVESTMENT EXPENSES ON THE UNDERLYING
FUND ACCOUNTS WHICH RANGE FROM 050 TO MORE THAN 130 ANNUALLY
TOGETHER THESE CAN PUSH THE AVERAGE COST OF VARIABLE ANNUITIES TO MORE THAN
2 ANNUALLY

CONTRACTS WITH LOWERTHANAVERAGE FEES INCLUDE FIDELITY RETIREMENT RESERVES
AND IDS FLEXIBLE BOTH HAVE ANNUAL CONTRACT CHARGES OF ONLY 1 AND
LOWERTHANAVERAGE FUND EXPENSES AS WELL IN ADDITION THEY BOTH HAVE
HIGHERTHANAVERAGE PERFORMANCE

THE LEAST EXPENSIVE VARIABLE ANNUITY IS COLLEGE RETIREMENT EQUITY FUND
WHICH HAS NO CONTRACT CHARGE AND FUND EXPENSES THAT ARE HALF THOSE OF OTHER
VARIABLE ANNUITIES

HOWEVER MONEY CAN BE TRANSFERRED TO ANOTHER ANNUITY CONTRACT WITHOUT
TRIGGERING TAXES BOTH FROM ONE INDIVIDUAL CONTRACT TO ANOTHER AND WITHIN A
RETIREMENT PLAN

BUT BEWARE OF SURRENDER PENALTIES TEACHERS AND EMPLOYEES FOR INSTANCE ARE
OFTEN UNAWARE OF THE CONSEQUENCES OF SHIFTING TO ANOTHER ANNUITY IN THEIR
PLAN VALIC SEPARATE ACCOUNT A CHARGES THE LESSER OF 5 OF THE AMOUNT
WITHDRAWN OR 5 OF THE MONEY INVESTED IN THE PAST FIVE YEARS PRUDENTIAL
VIP86 SURRENDER CHARGES START AT 8 IN THE FIRST YEAR AND DECLINES 1
ANNUALLY FOR EIGHT YEARS SURRENDER CHARGES START ON EACH FRESH DOLLAR
INVESTED SO IF YOU CONTRIBUTED MONEY TODAY IT WOULD TAKE YEARS BEFORE YOU
COULD SHIFT THAT MONEY TO ANOTHER CONTRACT WITHOUT INCURRING SURRENDER FEES

THIS MAKES IT VITAL THAT YOU CHECK ON THE PERFORMANCE AND FEES OF AN
ANNUITY THAT AN INSURANCE REPRESENTATIVE IS TRYING TO GET YOU TO INVEST IN
SAYS MS STRICKLAND EVEN IN TEACHERS' RETIREMENT PLANS THE INSURANCE AGENT
EARNS COMMISSIONS ON THE MONEY YOU CONTRIBUTE OR SHIFT INTO THEIR COMPANY'S
VARIABLE ANNUITY

EVEN IF YOU FEEL LOCKED INTO A CONTRACT COMPARING PERFORMANCE CAN STILL BE
VALUABLE INCREASINGLY FEEDBACK FROM UNHAPPY INVESTORS IS LEADING COMPANIES
TO IMPROVE THEIR INVESTMENT ACCOUNTS

INVESTORS CAN MAKE AN IMPACT SAYS MS STRICKLAND IT'S GOOD BUSINESS TO
LISTEN TO WHAT YOUR CUSTOMERS HAVE TO SAY

FOR EXAMPLE VENTURE VARIABLE ANNUITY LAST YEAR REPLACED ITS INVESTMENT
MANAGERS WITH SUCH WELL KNOWN NAMES AS WELLINGTON MANAGEMENT SALOMON
BROTHERS ASSET MANAGEMENT AND FIDELITY MANAGEMENT TRUST CO OVER THE PAST 12
MONTHS THEY'VE IMPROVED SAYS MS STRICKLAND ONE YEAR IS DEFINITELY NOT
TIME ENOUGH TO TELL BUT THEY'RE DEFINITELY LOOKING UP

IT'S IMPORTANT TO LOOK AT WHAT CHANGES A COMPANY HAS MADE IN MANAGERS OR
INVESTMENT OBJECTIVES SAYS JOE OSBORNE SENIOR VICE PRESIDENT OF MARKETING
FOR HOUSTONBASED VALIC VALIC WHICH IS AVAILABLE PRIMARILY IN TEACHERS'
RETIREMENT PLANS IS IN THE PROCESS OF CHANGING ITS MANAGERS AND MERGING
MOST OF ITS ACCOUNTS WITH INDEX FUNDS INDEX FUNDS TRACK SOME TYPE OF
BENCHMARK SUCH AS THE STANDARD & POOR'S 500STOCK INDEX 9307130113
930713 TWO BANKS IN VIRGINIA ACT TO MEET NEW RULES  A WALL STREET
JOURNAL NEWS ROUNDUP

TWO VIRGINIA BANKS ANNOUNCED PROGRESS IN THEIR EFFORTS TO MEET NEW CAPITAL
REQUIREMENTS IMPOSED BY FEDERAL REGULATORS THROUGH STOCKRIGHTS OFFERINGS

HERNDONBASED WASHINGTON FEDERAL SAVINGS BANK SAID IT COMPLETED A 153
MILLION RIGHTS OFFERING WHICH WILL ENABLE IT TO MEET THE FULLY PHASEDIN
CAPITAL REQUIREMENTS OF THE OFFICE OF THRIFT SUPERVISION EFFECTIVE IN 1995

AS A RESULT OF THE RIGHTS OFFERING THE THRIFT WILL ISSUE AN ADDITIONAL 68
MILLION COMMON SHARES TO HOLDERS AS OF JUNE 3 WASHINGTON FEDERAL SHARES
CLOSED YESTERDAY AT 291 UP 28 CENTS OR 11 IN NATIONAL OVERTHECOUNTER
TRADING

BRISTOLBASED CHARTER FEDERAL SAVINGS BANK SAID THE OTS APPROVED ITS
OFFERING OF COMMON STOCK PENDING DISTRIBUTION OF RIGHTS TO SHAREHOLDERS

UNDER THE OFFERING'S TERMS CHARTER FEDERAL ISSUED 218 MILLION RIGHTS OR
595 RIGHTS A COMMON SHARE WITH A RECORD DATE OF JULY 9 CHARTER FEDERAL'S
SHARES BEGAN TRADING SEPARATE FROM THE RIGHTS YESTERDAY THE OFFERING
EXPIRES AUG 6 EACH RIGHT WILL ENTITLE THE HOLDER TO PURCHASE ONE SHARE OF
COMMON STOCK FOR 2 A SHARE THE OFFERING IS SUBJECT TO THE MINIMUM SALE OF
NEARLY 207 MILLION COMMON SHARES

CHARTER FEDERAL SHARES CLOSED YESTERDAY AT 2375 DOWN 50 CENTS OR 17 IN
NATIONAL OVERTHECOUNTER TRADING 9307130111 930713 WHO'S NEWS 
FORSTMANN LITTLE & CO

FORSTMANN LITTLE & CO NEW YORK CHRIS A DAVIS 43 YEARS OLD WAS NAMED
CHIEF FINANCIAL OFFICER OF GULFSTREAM AEROSPACE CORP A SAVANNAH GA
AIRPLANE MANUFACTURING UNIT OF THIS LEVERAGEDBUYOUT FIRM MS DAVIS WHO
WAS DIVISION MANAGER FOR FINANCE AT MARTIN MARIETTA CORP'S GOVERNMENT
ELECTRONICS DIVISION SUCCEEDS ACTING CHIEF FINANCIAL OFFICER CRAIG WILLS
WHO TOOK ON THE POST AFTER TOM MALETTA 52 RETIRED LAST YEAR MR WILLS
45 REMAINS VICE PRESIDENT FINANCIAL PLANNING AND ANALYSIS 9307130110
930713 WORLD MARKETS FRANKFURT STOCKS RALLY 12 TO A 3YEAR HIGH 
GLOOM HURTS LONDON PRICES TOKYO SHARES RISE  A WALL STREET JOURNAL
NEWS ROUNDUP

FRANKFURT SHARE PRICES RALLIED 12 TO THE HIGHEST LEVEL IN THREE YEARS ON
PROSPECTS FOR REDUCED GERMAN INTEREST RATES AND ON HEAVY FOREIGN BUYING

OTHER EUROPEAN BOURSES HAD STRONG SHOWINGS WITH SOME SETTING RECORDS OR
HIGHS FOR THIS YEAR BUT LONDON PRICES DROPPED IN LIGHT TURNOVER ON GLUMNESS
ABOUT BRITISH POLITICS AND ECONOMIC DATA

TOKYO STOCKS ADVANCED IN THIN DEALINGS AS INVESTORS FOCUSED ON NEXT
SUNDAY'S GENERAL ELECTION IN JAPAN

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX WAS AT 10564 UP 023 REFLECTING INCREASES IN MARKETS IN THE
AMERICAS AND THE ASIA/PACIFIC REGION AND A DROP IN EUROPEAN MARKETS

CONSOLIDATED ELECTRONICS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD
INDUSTRY GROUPS CLOSING AT 10791 UP 227 OR 215 WITH TOMEI
INTERNATIONAL OF HONG KONG POSTING A 487 GAIN IN ITS LOCAL CURRENCY
CASINO STOCKS TRAILED AT 15284 DOWN 365 OR 233 WITH CASINO MUNICIPAL
DE CANNES OF FRANCE SLIDING 1237 IN LOCAL CURRENCY

IN FRANKFURT THE DAX 30STOCK INDEX SURGED 2076 POINTS TO 181817 WHICH
ALSO WAS THE INTRADAY HIGH THE JUMP PUSHED THE DAX UP 18 SINCE JAN 1

THE BROAD ADVANCE WAS FUELED BY EXPECTATIONS THAT THE GERMAN BUNDESBANK THE
CENTRAL BANK WILL BE FORCED TO CUT ITS INTEREST RATES SOONER RATHER THAN
LATER TO PRESERVE CALM WITHIN EUROPE'S EXCHANGE RATE MECHANISM THE FRENCH
FRANC AGAIN CAME UNDER HEAVY SPECULATIVE ATTACK AND PROMPTED INTERVENTIONS
TO SUPPORT THE CURRENCY BOTH BY THE BANK OF FRANCE AND THE BUNDESBANK

MEANWHILE A DRAFT OF INSIDERTRADING LEGISLATION WAS UNVEILED BY THE GERMAN
FINANCE MINISTRY INVESTORS WELCOMED THE PROPOSED LAW BECAUSE IT WOULD
TIGHTEN DISCLOSURE REQUIREMENTS AS WELL AS INTRODUCE FINES AND JAIL
SENTENCES FOR INSIDERTRADING VIOLATIONS

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 123
POINTS TO 28309 THE FT 30STOCK INDEX FELL 81 POINTS TO 22211 VOLUME
WAS 4481 MILLION SHARES DOWN SHARPLY FROM 6005 MILLION SHARES IN THE
PREVIOUS SESSION

ENTHUSIASM WAS SCARCE AT THE MIDPOINT OF LONDON'S TWOWEEK TRADING ACCOUNT
AHEAD OF A HEAVY SLATE OF ECONOMIC DATA TO BE RELEASED THIS WEEK AND AMID
CONTINUED PROBLEMS ON THE POLITICAL FRONT CONCERN ABOUT WALL STREET'S
DIRECTION ALSO NAGGED INVESTORS PRIME MINISTER JOHN MAJOR'S PROBLEMS IN
UNITING THE CONSERVATIVE PARTY REGAINED THE LIMELIGHT AHEAD OF SOME LEADING
TORIES' PLANNED VOTE AGAINST THE GOVERNMENT THIS WEEK IN THE HOUSE OF LORDS
AND A LOCAL ELECTION JUST TWO WEEKS AWAY INVESTORS ALSO WERE UNEASY ABOUT
COMING ECONOMIC DATA INCLUDING INFLATION TOMORROW AND THE GOVERNMENT'S
BORROWING REQUIREMENT FRIDAY

PARIS STOCKS ROSE DESPITE HEAVY PRESSURE ON THE FRENCH FRANC IN THE
CURRENCY MARKETS WHICH PUSHED IT IN RELATION TO THE GERMAN MARK TO LEVELS
THAT HADN'T BEEN SEEN SINCE THE CURRENCY CRISES LAST YEAR STOCKS' ADVANCE
PARTLY REFLECTED STRONG POPULAR SUPPORT FOR A PRIVATIZATION BOND THAT CAN BE
CONVERTED INTO SHARES OF PRIVATIZED FRENCH COMPANIES LATER AND THE
GOVERNMENT'S REITERATION THAT THE CURRENCY WON'T BE DEVALUED

MILAN SHARES ROSE SLIGHTLY AHEAD OF TECHNICAL DEADLINES FOR MONTHLY OPTIONS
CONTRACTS TOMORROW AND THE END OF THE JULY TRADING CYCLE FRIDAY MADRID
STOCKS SLIPPED IN CAUTIOUS TRADING AHEAD OF TODAY'S RELEASE OF JUNE
INFLATION DATA FOR SPAIN ANNOUNCEMENT OF THE NEW CABINET AND THE CENTRAL
BANK'S SECURITIES REPURCHASE TENDER AT WHICH IT SETS ITS BENCHMARK INTEREST
RATE NOW 11

STOCKHOLM EQUITIES HIT A 1993 HIGH AS THE US DOLLAR ROSE TO ITS HIGHEST
LEVEL IN SEVEN YEARS SPARKING HEAVY BUYING OF SHARES IN SWEDISH EXPORT
COMPANIES STRENGTH IN THE TELECOMMUNICATIONS SECTOR ALSO BOOSTED THE
MARKET REAL ESTATE AND CONSTRUCTION STOCKS SOARED MOSTLY ON SPECULATIVE
BUYING BUT THE BANKING SECTOR LOST GROUND ON PROFITTAKING

BRUSSELS SHARES RALLIED 13 AS THE BEL20 INDEX JUMPED 1677 TO A RECORD
131833 SURPASSING THE HIGH SET LAST FRIDAY AS FOREIGN INSTITUTIONAL
INVESTORS CONTINUED TO BUY POSITIONS GAINS ALSO WERE SUPPORTED BY THE
STRONG DOLLAR AND HOPES GERMANY WILL CUT INTEREST RATES

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 18872 POINTS FRIDAY
ROSE 10261 TO 19980 ON TUESDAY THE NIKKEI ROSE 16001 POINTS TO CLOSE THE
MORNING SESSION AT 2014001 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT
230 MILLION SHARES DOWN SHARPLY FROM 4734 MILLION SHARES IN THE PREVIOUS
SESSION WHEN TURNOVER WAS BOOSTED BY TRADING RELATED TO THE SPECIAL
QUOTATION TO SETTLE JULY OPTIONSCONTRACT PRICES GAINERS OUTNUMBERED
LOSERS 542419 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION
ISSUES WHICH ROSE 1769 POINTS FRIDAY ADDED 506 TO 161368

THE DOLLAR'S REBOUND AGAINST THE YEN IN THE WAKE OF A USJAPANESE TRADE
ACCORD OVER THE WEEKEND BOOSTED TRADING IN EXPORTRELATED SHARES THOUGH NOT
ALL THESE ISSUES POSTED ADVANCES BUT THE SUSPENSION OF TRADING IN THREE
STOCKS INCLUDING THE REAL ESTATE COMPANY EIE INTERNATIONAL AMID FEARS
OF BANKRUPTCIES ACCENTUATED THE MARKET'S OVERALL CAUTION

IN SYDNEY SHARE PRICES ROSE BROADLY AND THE MAIN INDEX HIT A SIXYEAR
HIGH ATTRIBUTED TO A REBOUND IN THE PRICE OF GOLD AND STRONG INTEREST IN
LARGE BLUE CHIPS SINGAPORE STOCKS SKIDDED ON CONTINUED SELLING OF SHIPYARD
AND OTHER BLUE CHIPS INVESTORS WORRIED ABOUT SHIPYARD EARNINGS HONG KONG
PRICES SLID FOLLOWING CHINA'S LATEST STEPS TO CONTROL ITS ECONOMIC
EXPANSION WHICH ADDED TO FEARS OF REPATRIATION OF FUNDS BY CHINESE
INVESTORS

AMONG CORPORATE DEVELOPMENTS IN SYDNEY WOOLWORTHS FINISHED AT 281
AUSTRALIAN DOLLARS US191 AFTER OPENING AT A284 ON THE FIRST DAY OF
TRADING FOR THE ISSUE ON VOLUME OF SLIGHTLY MORE THAN 13 MILLION SHARES IN A
SESSION EXTENDED TO HANDLE THE DEMAND THE RETAILER'S STOCK HAD AN INTRADAY
LOW OF A260 THEN SOARED TO A HIGH OF A298 IN THE INITIAL PUBLIC
OFFERING THE LARGEST IN AUSTRALIAN CORPORATE HISTORY ONE BILLION SHARES
WERE ISSUED AT A245 EACH

IN LONDON TOMKINS FELL 115 PENCE OR 51 TO 2125 PENCE 315 ON THE
INDUSTRIAL CONGLOMERATE'S GUARDED ASSESSMENT OF THE PACE OF RECOVERY IN THE
US AND BRITAIN TOMKINS'S PRETAX PROFIT FOR THE YEAR ENDED MAY 1 JUMPED
29 TO 171 MILLION 2535 MILLION FROM A YEAR EARLIER IN LINE WITH
EXPECTATIONS TOMKINS WITH INTERESTS INCLUDING INDUSTRIAL AND LEISURE
PRODUCTS AND FOOD DISTRIBUTION RAISED THE DIVIDEND 21 TO 635 PENCE A
SHARE

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
9307130109 930713 WHO'S NEWS LESLIE FAY COS

LESLIE FAY COS NEW YORK KATHRYN D CONNORS 47 YEARS OLD WAS NAMED TO
THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT FOR CORPORATE AFFAIRS AT
THIS APPAREL COMPANY EFFECTIVE AUG 1 CURRENTLY VICE PRESIDENT FOR HUMAN
RESOURCES AT LIZ CLAIBORNE INC ANOTHER APPAREL CONCERN MS CONNORS WILL
BE RESPONSIBLE FOR HUMAN RESOURCES AND SHAREHOLDER RELATIONS REPORTING TO
MICHAEL J BABCOCK PRESIDENT AND CHIEF OPERATING OFFICER SHE WILL HANDLE
LEGAL AFFAIRS WHEN HERMAN GORDON 68 RETIRES AS SENIOR VICE PRESIDENT AND
GENERAL COUNSEL JAN 1 9307130108 930713 MEDIA QVC NETWORK HOME
SHOPPING PLAN TO MERGE  BY JOHNNIE L ROBERTS STAFF REPORTER OF
THE WALL STREET JOURNAL

NEW YORK QVC NETWORK INC ANNOUNCED PLANS TO MERGE WITH ITS
SCANDALSCARRED RIVAL HOME SHOPPING NETWORK INC IN A STOCK SWAP VALUED AT
AS MUCH AS 14 BILLION

THE AGREEMENT WHICH MUST GAIN APPROVAL OF BOTH COMPANIES' DIRECTORS AND
SHAREHOLDERS AS WELL AS ANTITRUST CLEARANCE WOULD CREATE A COLOSSUS IN
ELECTRONIC RETAILING ONE WIDELY EXPECTED TO START A FIFTH BROADCASTING
NETWORK WITHIN MONTHS

NEWS OF THE TVSHOPPING MARRIAGE FUELED A JUMP IN THE TWO COMPANIES' SHARES
HOME SHOPPING STOCK JUMPED 1 A SHARE OR 79 TO 13625 IN NEW YORK STOCK
EXCHANGE COMPOSITE TRADING QVC SHARES ROSE 250 OR 38 TO 6775 IN
NATIONAL OVERTHECOUNTER TRADING SHARES OF LIBERTY MEDIA CORP WHICH OWNS
PART OF EACH COMPANY FELL 125 CENTS TO 23 IN OVERTHECOUNTER TRADING

THE CAREFULLY STRUCTURED PROPOSAL LONG ANTICIPATED IN THE INDUSTRY AIMS TO
LIFT THE CLOUDS OF CONTROVERSY INVOLVING ALLEGED KICKBACKS AND OTHER
IMPROPRIETIES THAT HAVE OVERSHADOWED HOME SHOPPING AND THREATENED TO TARNISH
THE ENTIRE TV SHOPPING BUSINESS QVC'S OFFER IN EFFECT SETS AS 140
MILLION OR 10 OF THE VALUE OF THE TRANSACTION THE POTENTIAL LIABILITY
STEMMING FROM THE SCANDAL THE FIRST TIME A SPECIFIC FINANCIAL IMPACT HAS
BEEN PLACED ON HOME SHOPPING'S CONTINUING LEGAL TROUBLES

UNDER THE PROPOSAL QVC SHAREHOLDERS WOULD RECEIVE AS COMPENSATION FOR THE
POTENTIAL LIABILITY SECURITIES THAT LATER COULD BE CONVERTED TO ADDITIONAL
HOME SHOPPING SHARES REPRESENTING AS MUCH AS 10 OF THE VALUE OF HOME
SHOPPING'S SHARES OUTSTANDING

MOREOVER THE PROPOSAL INCLUDES AN OPTION FOR QVC TO ACQUIRE A CONTROLLING
STAKE IN HOME SHOPPING'S TV STATION SPINOFF SILVER KING COMMUNICATIONS
INC WHICH OWNS 12 UHF STATIONS THAT WOULD FORM THE CORE OF A POSSIBLE
FIFTH NETWORK

THE RESULT WOULD PUT CONTROL OF A NASCENT JUGGERNAUT IN ENTERTAINMENT CABLE
TV AND VIDEO RETAILING IN THE HANDS OF THREE POWERFUL PARTNERS QVC CHAIRMAN
BARRY DILLER CABLE BARON JOHN MALONE WHO CONTROLS LIBERTY MEDIA AND IS
CHIEF EXECUTIVE OFFICER OF THE NATION'S LARGEST CABLE OPERATOR
TELECOMMUNICATIONS INC AND COMCAST COMMUNICATIONS INC ANOTHER BIG CABLE
CONCERN

TOGETHER MR DILLER LIBERTY MEDIA AND COMCAST WOULD OWN 44 OF THE
COMBINED QVCHOME SHOPPING ENTITY WHICH WOULD KEEP THE QVC NAME BOARD AND
TOP MANAGEMENT THE HOME SHOPPING NAME WOULD PROBABLY BE RETAINED ONLY AS A
CHANNEL BRAND NAME QVC WILL ALSO CONTINUE THE TWO CHANNELS THAT BEAR ITS
NAME

THE MERGER MUST PASS ANTITRUST SCRUTINY IN WASHINGTON BUT WHILE THE
PROPOSED COMBINATION WOULD CREATE A VIRTUAL TV HOME SHOPPING MONOPOLY MANY
INDUSTRY EXECUTIVES SAY THAT THE ANTITRUST HURDLE WAS PROBABLY REMOVED
EARLIER THIS YEAR WHEN MR MALONE'S LIBERTY MEDIA WHICH ALREADY OWNED A
LARGE QVC STAKE RECEIVED CLEARANCE FROM THE JUSTICE DEPARTMENT TO ACQUIRE
CONTROL OF HOME SHOPPING

PEOPLE FAMILIAR WITH THE TRANSACTION INDEED SAY THAT THE JUSTICE
DEPARTMENT IN APPROVING LIBERTY'S EARLIER TRANSACTION ASSUMED THAT QVC AND
HOME SHOPPING MIGHT EVENTUALLY MERGE

LIBERTY MEDIA SAID IT FAVORS THE TRANSACTION BUT WILL VOTE IN FAVOR OF THE
MERGER ONLY IF IT WINS THE APPROVAL OF A MAJORITY OF THE STOCK HELD BY OTHER
HOME SHOPPING HOLDERS MANY ANALYSTS SAID APPROVAL BY SHAREHOLDERS AND
DIRECTORS IS LIKELY TO BE A FORMALITY

I THINK WE WILL END UP WITH A COMPETITIVE POWERHOUSE IN THE BROADER
RETAILING INDUSTRY SAID MR DILLER HE SAID HE IS UNLIKELY TO MERGE ANY OF
THE FIVE CHANNELS CURRENTLY OPERATED BY QVC AND HOME SHOPPING BUT THAT HE
WOULD PROBABLY REVAMP THEM HE ALSO EXPECTS TO STREAMLINE OPERATIONS TO
ELIMINATE DUPLICATIONS SECURITIES ANALYSTS HAVE SAID THE COMBINED COMPANIES
COULD CUT AS MUCH AS 50 MILLION A YEAR IN COSTS

THIS IS A DREAM COME TRUE WE ARE GOING TO HAVE A CHANCE TO MAKE THE WHOLE
CATEGORY BIGGER SAID BRIAN ROBERTS COMCAST CHIEF EXECUTIVE

THOUGH QVC CLEARLY IS IN CONTROL THE TERMS OF THE MERGER WOULD HAVE HOME
SHOPPING USE FIVE OF ITS SHARES TO ACQUIRE EACH SHARE OF QVC BASED ON
YESTERDAY'S CLOSING PRICES THE VALUE OF THE TRANSACTION IS ROUGHLY 14
BILLION WHICH QVC WILL RECORD ON ITS BOOKS

ACCORDING TO PEOPLE FAMILIAR WITH THE TRANSACTION THE SOCALLED REVERSE
TAKEOVER WAS NECESSARY TO AVOID RUNNING AFOUL OF SECURITIES LAWS LIBERTY
MEDIA HAD ACQUIRED VOTING CONTROL OF HOME SHOPPING FROM CHAIRMAN ROY SPEER
IN DECEMBER BUT WITHDREW A SUBSEQUENT OFFER TO ACQUIRE THE REST OF THE
COMPANY FOR ABOUT 9 A SHARE BECAUSE OF THE SCANDAL THAT SENT HOME
SHOPPING'S SHARES INTO A TAILSPIN LATER LIBERTY MEDIA ANNOUNCED A NEW
OFFER AT 7 A SHARE FOR A SMALLER STAKE OF SOME 15 MILLION SHARES

SECURITIES LAWS EVIDENTLY WOULD HAVE BARRED LIBERTY MEDIA FROM SELLING ITS
HOME SHOPPING STAKE WITHIN SIX MONTHS OF HAVING ACQUIRED IT ACCORDING TO
PEOPLE FAMILIAR WITH THE PROPOSAL NONE OF THE PRINCIPALS TO THE TRANSACTION
WOULD COMMENT ON THE POINT 9307130107 930713 LEISURE & ARTS THEATER 
LLOYD WEBBER'S LATEST IS A CLASS ACT  BY PAUL LEVY

LONDON SUNSET BOULEVARD ANDREW LLOYD WEBBER'S 45 MILLION MUSICAL
BASED ON THE CLASSIC BILLY WILDER FILM HAS TURNED INTO A FARCE THE
PRODUCTION RECEIVED MORE PREPUBLICITY THAN ANY PLAY IN HISTORY HERE AND IT
WAS REPORTED THAT WHOLE TEAMS OF AMERICAN THEATER CRITICS WOULD BE FLOWN IN
FOR THE PREMIERE HOWEVER THE OPENING AT THE COMPLETELY RENOVATED ADELPHI
THEATRE WHICH IS COOWNED BY SIR ANDREW'S REALLY USEFUL GROUP HAD TO BE
POSTPONED FOR NEARLY TWO WEEKS BECAUSE THE ELABORATE ELECTRONIC
SETSHIFTING HYDRAULIC MECHANISMS WERE OPERATING ON THE SAME RADIO FREQUENCY
AS SIR ANDREW'S PORTABLE TELEPHONE EVERY TIME HE MADE A CALL THE
GIGANTICALLY BULKY SET DEPICTING THE ROCOCO HOLLYWOOD MANSION AT 10086
SUNSET BOULEVARD LOWERED ITSELF AND THREATENED TO GUILLOTINE THE ACTORS
WORSE IT WAS DISCOVERED THAT MANY LONDON RADIO TAXIS ALSO USE THAT
FREQUENCY

THE SHOW HAS AT LAST GONE ON AND IT IS A CLASS ACT A FACT THAT MIGHT
SURPRISE THE FINANCIAL ANALYSTS WHO HAVE REVEALED THAT IN 1991 NEARLY HALF
THE MONEY SPENT ON GOING TO THE THEATER IN THE WEST END AMOUNTING TO A
TIDY SUM OF 138 MILLION WAS TAKEN IN BY THE BOX OFFICES OF A FEW
BLOCKBUSTER MUSICALS THE BRITISH PRESS RECKONS THAT LLOYD WEBBER
PRODUCTIONS ALONE ACCOUNTED FOR 20 OF THAT WHILE SUNSET TOOK IN A 9
MILLION ADVANCE AND THEREFORE MADE A BIG PROFIT EVEN BEFORE IT OPENED 
OTHER MUSICALS THIS SEASON HAVE FLOPPED

ANYONE WHO IS TEMPTED TO THINK THAT ONLY GREAT VULGARITY CAN SELL TICKETS IN
THESE MEGANUMBERS IS WRONG SEVERAL MEMBERS OF THE CAST OF SUNSET ARE
DISTINGUISHED ACTORS OF PROVEN TALENT DIRECTOR TREVOR NUNN'S TRACK RECORD
IS OF OLYMPIC STANDARD AND THE BOOK AND LYRICS HAVE BEEN COAUTHORED BY A
SERIOUS PLAYWRIGHT CHRISTOPHER HAMPTON

SUNSET BOULEVARD IS A LEAN MEAN MUSIC MACHINE WITH NO DRAM OR MUSICAL
FLAB IT OUTOKLAHOMAS OKLAHOMA IN ITS INTEGRATION OF LYRICS AND DRAMATIC
ACTION IS OPERATIC IN ITS CONCEPTION AND UNUSUAL FOR A MUSICAL DOES NOT
EVEN HAVE ANY SET PIECES NO EPISODE IN THE PLOT IS EVER USED AS AN EXCUSE
FOR BREAKING INTO SONG THE SONGS ARE THE PLOT A SORT OF RECITATIVE IS
USED AND DIALOGUE ONLY SPARINGLY THE LYRICS ARE SOPHISTICATED WITTY AND
GROWNUP WITH NONE OF THE SENTIMENTALITY WE HAVE COME TO EXPECT FROM LLOYD
WEBBER MUSICALS

IT SEEMS EVIDENT TO ME THAT THIS IS THE HAPPY RESULT OF THE CONTRIBUTION OF
MR HAMPTON WHO WROTE THE LYRICS AND BOOK IN COLLABORATION WITH DON BLACK
THE OSCARWINNING VETERAN LYRICIST OF TWO OTHER LLOYD WEBBER CREATIONS
SONG & DANCE AND ASPECTS OF LOVE MR HAMPTON IS PROBABLY BEST KNOWN FOR
THE SCRIPT OF THE PLAY LES LIAISONS DANGEREUSES AND THE 1988 ACADEMY
AWARDWINNING FILM MADE FROM IT STARRING GLENN CLOSE DANGEROUS LIAISONS

IT IS AS A STAGE DRAMATIST THAT MR HAMPTON FIRST MADE HIS MARK FOLLOWING
HIS GRADUATION FROM OXFORD IN 1968 HE BECAME THE YOUNGESTEVER RESIDENT
DRAMATIST AT THE LONDON ROYAL COURT THEATRE HE HAD AN EARLY CONNECTION WITH
SIR ANDREW AS HE HAD BEEN AT SCHOOL WITH TIM RICE SIR ANDREW'S ORIGINAL
COLLABORATOR AND THE PRECOCIOUS PAIR ASKED HIM TO DO THE BOOK OF JESUS
CHRIST SUPERSTAR MR HAMPTON DEMURRED AND ADVISED THEM TO DO THE PLAY AS
AN OPERA BECAUSE THE STORY WAS TOO WELL KNOWN TO REQUIRE EXPLANATORY
DIALOGUE

IN FACT MR HAMPTON ALREADY HAD THE IDEA TO MAKE AN OPERA OF SUNSET
BOULEVARD FOR THE ENGLISH NATIONAL OPERA WHEN WORKING ON HIS 1982 PLAY
TALES FROM HOLLYWOOD HE HAD BECOME INTERESTED IN THE REFUGEES WHO
POPULATED HOLLYWOOD IN THE 1930S AND MET WILDER WILDER TOLD HIM HE HAD
RETAINED NO RIGHTS TO SUNSET BOULEVARD MR HAMPTON APPLIED TO PARAMOUNT
WHICH HAS AN INTEREST IN THE CURRENT SHOW ONLY TO BE TOLD EVENTUALLY THAT
SOMEONE ELSE HELD AN OPTION THE OTHER PARTY TURNED OUT TO BE SIR ANDREW

SO HERE WE HAVE THE RESULT OF THESE COMPLICATED NEGOTIATIONS IF IT WAS NOT
RECEIVED WITH HYSTERICAL ENTHUSIASM THIS MAY BE BECAUSE THE PRODUCTION
IMPROVES UPON REFLECTION OR BECAUSE IT IS VERY NEARLY A GENUINE OPERA AND
THE AUDIENCE HAD COME TO SEE A MUSICAL

EVERY NONMUSICAL DETAIL OF THE EVENING IS NEAR PERFECT YOU CAN HEAR EACH
CLEVER SYLLABLE OF THE LYRICS AND THE VERY FINE ORCHESTRA IS COMPLETELY
ACOUSTIC MAGGIE GOODWIN'S CHOREOGRAPHY IS GRACEFUL AND UNOBTRUSIVE THE
ELEVATOR SETS BY JOHN NAPIER FOR THE DRAWING ROOM OF THE MANSION ON SUNSET
BOULEVARD AND CECIL B DEMILLE'S HOLLYWOOD SHOOTING SET ARE AWESOME AND THE
MECHANICS WORK BRILLIANTLY

CROWNING ALL THIS SKILL AND SPLASH ARE THE EXCELLENT PERFORMANCES MR NUNN
HAS GOT FROM TWO OF HIS PRINCIPALS PATTI LUPONE IS A RAVISHING AND MOVING
NORMA DESMOND/GLORIA SWANSON SHE CAN ACT AND SHE CAN SING AND THOUGH SHE
HAD A SPOT OF BOTHER WITH HER TOP NOTES IN THE PERFORMANCE I SAW THE PART
IS WELL WITHIN HER VOCAL RANGE SHE HAS ALMOST ALL THE SHOWSTOPPING NUMBERS
 WITH ONE LOOK AND THE SILENTFILM ANTHEM NEW WAYS TO DREAM WITH ITS
SUPERB LYRICS AND SHE HAS GOT THE SILENTMOVIESTARKILLERVAMP LOOK JUST
RIGHT

KEVIN ANDERSON AS JOE GILLIS/WILLIAM HOLDEN GAVE AN EVEN MORE REMARKABLE
PERFORMANCE HE IS ALMOST NEVER OFF THE STAGE AND CARRIES THE SHOW ALTHOUGH
HE HAS TO PLAY AGAINST MS LUPONE WHO HAS THE AUDIENCE HYPNOTIZED IN THE
FIRSTSCENE FRONTOFTHECURTAIN SOLILOQUY MR ANDERSON ESTABLISHES AN
INTENSE INTIMACY WITH THE AUDIENCE THAT ISN'T BROKEN UNTIL HE IS SHOT WHILE
TRYING TO LEAVE NORMA DESMOND HIS VOICE IS SOFT AND BEGUILING BUT HAS
SOLID POWER BEHIND IT THAT CARRIES HIM BUOYANTLY THROUGH THE SECONDACT LOVE
DUET WITH BETTY SCHAEFER TOO MUCH IN LOVE TO CARE

THE ACTING OF MR ANDERSON WHO TRAINED IN CHICAGO AND IS A STEPPENWOLF
ENSEMBLE MEMBER CATCHES EVERY NUANCE OF THE AWKWARD PREDICAMENT JOE GILLIS
FINDS HIMSELF IN AS NORMA DESMOND'S BOY TOY HE IS A STUNNING PHYSICAL
SPECIMEN TOO ALMOST MORE BELIEVABLE IN THE ROLE THAN WILLIAM HOLDEN WAS IN
THE FILM

THE BIGGEST PROBLEM IS DANIEL BENZALI WHO HAS OBVIOUSLY BEEN CAST IN THE
MAX VON MAYERLING/ERICH VON STROHEIM ROLE BECAUSE HE LOOKS LIKE THE
GROTESQUE AGING GERMAN DIRECTOR DID IN THE WILDER SUNSET HE ACTS
PLAUSIBLY BUT THE VOCAL PART LIES OUTSIDE HIS RANGE AND THE TYPICAL LLOYD
WEBBER FALSETTO PHRASE ENDINGS ARE WAY BEYOND HIM LIKEWISE AS THE BETTY
SCHAEFER CHARACTER MEREDITH BRAUN IS VOCALLY MISCAST

THIS BRINGS US TO THE NUB OF THE MATTER IT IS WIDELY THOUGHT THAT THE
CRITICS ARE LOOKING FOR AN EXCUSE TO TRASH SIR ANDREW'S MUSIC HE HAS
ADMITTED TO JOURNALISTS THAT HE HAS BEEN STUNG BY ACCUSATIONS OF PLAGIARISM
AND THAT HE EMPLOYS MUSICOLOGISTS TO CHECK HIS SCORES AND GUARD AGAINST ANY
SUCH CARPING IN THE FUTURE SIR MALCOLM WILLIAMSON MASTER OF THE QUEEN'S
MUSIC HAS BEEN QUOTED TO THE EFFECT THAT THE DIFFERENCE BETWEEN GOOD MUSIC
AND LLOYD WEBBER IS THE DIFFERENCE BETWEEN THE WORK OF MICHELANGELO AND THAT
OF A CEMENT MIXER ON THE OTHER HAND YOU DON'T ENCOUNTER MANY PEOPLE
WALKING DOWN THE STREET HUMMING OR WHISTLING TUNES BY SIR MALCOLM

SUNSET BOULEVARD IS THE MOST DRAMATICALLY INTEGRATED SCORE SIR ANDREW HAS
YET DONE EACH TUNE EACH PHRASE NUDGES THE ACTION ON A BIT IT IS
WELLMADE SO TIGHTLY CONCEIVED THAT THE MUSICAL IDEAS ARE USED SPARINGLY
AND OFTEN REPEATED THERE ARE NO FEWER THAN SEVEN REPRISES OF EARLIER
NUMBERS IN THIS WAY THE SCORE IS TRULY OPERATIC BUT THERE IS SO MUCH
REPETITION OF MUSICAL FIGURES THAT THE ANALOGY IS NOT WITH WAGNERIAN
LEITMOTIFS BUT WITH THE ONPURPOSE MUSICAL MONOTONY OF PHILIP GLASS OF
COURSE THERE IS NO PUBLISHED SCORE AND I MAY BE WRONG BUT I HAD THE
DISTINCT SENSATION OF HEARING THE OPENING NOTES OF A WELLKNOWN TUNE FROM
ASPECTS OF LOVE REPEATED DOZENS OF TIMES IN SEVERAL DIFFERENT MUSICAL
CONTEXTS I HAVE COME AWAY FROM SUNSET BOULEVARD WITH THE IMPRESSION THAT
SIR ANDREW HAS REACTED TO THE CHARGES OF MUSICAL PLAGIARISM BY STEALING FROM
HIS OWN MUSIC

AT THE SAME TIME HE HAS ALSO TAKEN A FRESH DIRECTION IN THE FIRST NUMBER ON
THE PARAMOUNT LOT LET'S HAVE LUNCH THIS SOMEWHAT ANACHRONISTIC BUT
ENERGETIC PIECE WHICH TAKES PLACE JUST BEFORE NEW YEAR'S EVE 1949 HANDILY
EXPLOITS ELEMENTS OF SWING AND THE HOLLYWOOD SCREEN MUSIC OF THE '30S '40S
AND '50S DESPITE THIS AND THE DRAMATIC TAUTNESS OF THE SCORE I WAS A
LITTLE DISAPPOINTED TO FIND MYSELF WHISTLING MOSTLY LLOYD WEBBERISMS AS I
CAME OUT OF THE THEATER ECHOES OF EARLIER MOMENTS IN THIS PUZZLINGLY
TRIUMPHANT CAREER 9307130106 930713 CREDIT MARKETS TIME WARNER
REPORTEDLY FINDS BUYERS HESITANT ABOUT UNIT'S 1 BILLION ISSUE OF 40YEAR
BONDS  BY THOMAS T VOGEL JR AND LAURA JERESKI STAFF REPORTERS OF
THE WALL STREET JOURNAL

NEW YORK APPARENTLY THERE ARE LIMITS TO INVESTORS' APPETITE FOR CERTAIN
TYPES OF BONDS AS TIME WARNER INC LEARNED YESTERDAY

WITH LONGTERM INTEREST RATES AT THEIR LOWEST LEVELS IN 16 YEARS INVESTORS
HAVE BEEN MORE WILLING TO TAKE ON GREATER RISKS IN RETURN FOR HIGHER YIELDS
DESPITE SUCH STRONG DEMAND FOR HIGHYIELDING CORPORATE PAPER IN THE PAST FEW
WEEKS TIME WARNER HAD TROUBLE DRUMMING UP DEMAND FOR A PRIVATE OFFERING OF
1 BILLION OF 40YEAR BONDS BY AN ENTERTAINMENT UNIT TIME WARNER
ENTERTAINMENT CO ACCORDING TO BOND INVESTORS AND UNDERWRITERS NOT INVOLVED
IN THE OFFERING

ONE SIGN OF WEAK DEMAND FOR THE ISSUE ACCORDING TO BARBARA KENWORTHY A
PORTFOLIO MANAGER FOR DREYFUS CORP IS HOW THE YIELD SPREADS FOR OTHER TIME
WARNER BONDS WIDENED OVER TREASURYS WITH COMPARABLE MATURITIES WHEN SPREADS
WIDEN FOR BONDS FROM THE SAME ISSUER OR EVEN THE PARENT COMPANY OF THE
ISSUER IT'S OFTEN A SIGN THAT INVESTORS ARE SELLING THEIR HOLDINGS OF THE
BONDS OUTSTANDING ACCORDING TO MS KENWORTHY THE TIME WARNER BONDS OFFERED
YESTERDAY WERE PRICED AT A FAR TOO NARROW YIELD SPREAD OVER COMPARABLE
TREASURYS

THE NARROW SPREAD ESPECIALLY FOR A BOND WITH A 40YEAR MATURITY AND
MEMORIES OF HOW UNDERWRITERS HAD DIFFICULTY QUICKLY SELLING OTHER RECENT
TIME WARNER OFFERINGS SENT OTHER TIME WARNER BONDS INTO A LITTLE BIT OF A
TIZZY SHE SAID NOT ONLY DID THE DEAL NOT WORK SAID MS KENWORTHY BUT
IT HAS WIDENED OUT THE SPREADS OVER COMPARABLE TREASURYS OF EXISTING TIME
WARNER DEBT PAPER ACCORDING TO MS KENWORTHY SOME OF TIME WARNER'S DEBT
OUTSTANDING SAW ITS YIELD SPREAD OVER COMPARABLE TREASURYS WIDEN AS MUCH AS
007 PERCENTAGE POINT AS ITS PRICE DROPPED A SIGN OF WEAKENING DEMAND AND
SELLING PRESSURE

UNDERWRITERS ARE OFTEN QUICK TO SAY THAT A BOND OFFERING HAS BEEN COMPLETELY
SOLD OUT BUT A SPOKESMAN FOR LEHMAN BROTHERS THE LEAD UNDERWRITER
WOULDN'T SAY HOW MANY OF THE BONDS HAD BEEN SOLD BY THE DAY'S END
REGARDING THIS TRANSACTION WE'RE COMFORTABLE WHERE WE ARE AT THIS POINT
HE SAID WE'RE RIGHT ON TRACK TIME WARNER OFFICIALS WOULDN'T COMMENT ON
THE OFFERING

THE TIME WARNER SENIOR NOTES WERE PRICED WITH A COUPON OF 8375 AT 99392
TO YIELD 8428 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 180
PERCENTAGE POINTS OVER THE 30YEAR TREASURY BOND THE ISSUE HAS WHAT IS
KNOWN AS A SPLIT RATING FROM THE TWO MAJOR RATING AGENCIES MOODY'S
INVESTORS SERVICE INC HAS RATED IT BA2 A JUNKBOND RATING WHILE STANDARD
& POOR'S CORP HAS RATED IT TRIPLEBMINUS ITS LOWEST INVESTMENTGRADE
RATING THE PROCEEDS WILL BE USED TO REFINANCE A PORTION OF THE SUBSIDIARY'S
LONGTERM DEBT

THE ISSUE WAS BROUGHT TO MARKET AS A PRIVATE PLACEMENT UNDER SECURITIES AND
EXCHANGE COMMISSION RULE 144A WHICH ALLOWS DEBT TO BE SOLD UNDER RELAXED
DISCLOSURE REQUIREMENTS TO SOCALLED QUALIFIED INSTITUTIONAL INVESTORS WITH
AT LEAST 100 MILLION OF ASSETS UNDER MANAGEMENT HOWEVER THE ISSUE
INCLUDES SOCALLED REGISTRATION RIGHTS MEANING THAT THE SECURITIES MAY BE
BOUGHT BY ANY INVESTOR IF THE SECURITIES ARE REGISTERED WITH THE SEC WITHIN
A SPECIFIED PERIOD OF TIME

ACCORDING TO MS KENWORTHY THE REACTION OF INVESTORS TO THE TIME WARNER
OFFERING MAY HAVE BEEN A KNEEJERK RESPONSE TO HOW WELL YESTERDAY'S ISSUE
WOULD FARE IN THE WAKE OF A HUGE WAVE OF TIME WARNER NOTES IN RECENT MONTHS

IN THE PAST SEVEN MONTHS PARENT TIME WARNER INC HAS BEEN UNDERGOING A
MARATHON BALANCESHEET OVERHAUL IN JANUARY ALONE THE COMPANY SOLD 3
BILLION OF NEW NOTES AND BONDS IN THREE DIFFERENT OFFERINGS LATE LAST YEAR
THE COMPANY SOLD 16 BILLION OF LIQUIDYIELD OPTION NOTES WHICH ARE
ZEROCOUPON BONDS CONVERTIBLE INTO STOCK AND THEN SOLD 21 BILLION OF
LYONS LAST MONTH ZEROCOUPON BONDS PAY NO INTEREST AND ARE SOLD AT A DEEP
DISCOUNT TO FACE VALUE THE NET 13 BILLION RAISED IN THE TWO LYONS DEALS
REFINANCED TWO COSTLY PREFERRED STOCK ISSUES WITH LOWERCOUPON DEBT SHOULD
TIME WARNER'S STOCK RISE ENOUGH BY THE TIME THE LYONS COME DUE THE COMPANY
WILL BE ABLE TO PAY BACK ITS DEBT WITH STOCK YET TIME WARNER WILL HAVE
BENEFITED FROM TAX DEDUCTIONS TAKEN IN THE MEANTIME FOR THE INTEREST IMPUTED
ON THE NOTES

YESTERDAY'S DEBT OFFERING ISN'T THE FINAL STEP IN TIME WARNER'S EFFORTS TO
SPRUCE UP ITS BALANCE SHEET TIME WARNER ENTERTAINMENT IS THE PARTNERSHIP
FORMED BY TIME WARNER ITOCHU CORP AND TOSHIBA CORP TO OWN TIME WARNER'S
MOVIE PRODUCTION TELEVISION AND CABLE PROGRAMMING AND CABLE SYSTEM
OPERATION IN MAY U S WEST INC BOUGHT A 2551 STAKE IN TWE

THE SALE OF THAT STAKE WILL ENABLE THE ENTERTAINMENT GIANT TO DECONSOLIDATE
ITS TWE SUBSIDIARY OF WHICH IT OWNS 633 BY THE END OF THE YEAR AS A
RESULT THE DEBT OF TWE WILL NO LONGER APPEAR ON TIME WARNER'S BALANCE
SHEET YET TIME WARNER WILL BE ABLE TO RECOGNIZE ITS SHARE OF TWE'S
EARNINGS EVEN THOUGH IT CAN'T TAP TWE'S CASH LAST YEAR TWE GENERATED
ALMOST ALL OF TIME WARNER'S EARNINGS ACCORDING TO DOCUMENTS FILED BY THE
COMPANY WITH THE SEC

DECONSOLIDATING IS A VERY AGGRESSIVE MOVE ON THEIR PART SAID ONE WALL
STREET TAX EXPERT IT'S UNUSUAL TO BE ABLE TO DECONSOLIDATE A SUBSIDIARY
WHEN YOU STILL OWN MORE THAN 50 VOTING CONTROL

EXPECTATIONS OF GOOD INFLATION NEWS HELPED TO PAVE THE WAY FOR SLIGHTLY
HIGHER PRICES ON SOME TREASURY SECURITIES IN OTHERWISE UNEVENTFUL TRADING

THE 30YEAR TREASURY BOND ROSE NEARLY 1/4 POINT WHILE MOST OTHER SECURITIES
WERE SLIGHTLY HIGHER OR UNCHANGED BY THE END OF THE DAY

THERE WERE VERY FEW CATALYSTS FOR TRADING ALTHOUGH DECLINING COMMODITY
PRICES PROVIDED AN ADDED DEGREE OF COMFORT FOR BONDHOLDERS THE WIDELY
WATCHED COMMODITY RESEARCH BUREAU INDEX SLIPPED 087 POINT TO END AT 21518

FOR THE MOST PART PLAYERS WERE LOOKING AHEAD TO THE FLOOD OF ECONOMIC DATA
DUE THIS WEEK ESPECIALLY THE JUNE PRODUCER PRICE REPORT SLATED TO BE
RELEASED TODAY AND THE CONSUMER PRICE DATA TO BE RELEASED TOMORROW

BOND INVESTORS WORRY ABOUT INFLATION BECAUSE IT REDUCES THE VALUE OF
INVESTMENTS WITH A FIXED RATE OF RETURN NEWS OF LOW INFLATION FOR JUNE
WOULD BE GOOD NEWS FOR THE BOND MARKET AND COULD PUSH YIELDS TO NEW LOWS

ECONOMISTS BELIEVE THE PRODUCER PRICE REPORT WILL SHOW A DECLINE MOSTLY IN
REPONSE TO DISCOUNTS ON TOBACCO PRODUCTS ANNOUNCED THIS YEAR FORECASTS
CENTER ON AN OVERALL DECLINE OF 03 IN THE PPI AND A DECLINE OF 02 WHEN
THE VOLATILE FOOD AND ENERGY PARTS ARE FACTORED OUT

TOMORROW'S CONSUMER PRICE REPORT IS ALSO EXPECTED TO BE GOOD FOR BONDS WITH
ANALYSTS CALLING FOR AN INCREASE OF ONLY 01

MEANWHILE YESTERDAY THE TREASURY SOLD 2470 BILLION OF THREEMONTH AND
SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD
AT AN AVERAGE DISCOUNT RATE OF 304 FOR A COUPONEQUIVALENT YIELD OF 310
THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 314 FOR A
COUPONEQUIVALENT YIELD OF 323 HERE ARE THE RESULTS OF THE AUCTION

RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE
VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER
BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR
WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR

BOTH ISSUES ARE DATED JULY 15 THE 13WEEK BILLS MATURE OCT 14 1993 AND
THE 26WEEK BILLS MATURE JAN 13 1994

PRICES OF MOST MUNICIPAL BONDS ENDED UNCHANGED BUT DEALINGS LIKELY WILL
BECOME LIVELIER LATER IN THE WEEK AS MORE THAN 3 BILLION IN LARGE OFFERINGS
ARE DUE

THE LARGEST DEAL SHOULD BE A NEGOTIATED OFFERING OF 806 MILLION OF PUERTO
RICO HIGHWAY AUTHORITY BONDS OFFERED THROUGH UNDERWRITERS LED BY MERRILL
LYNCH & CO THE HIGHWAY AUTHORITY HOPES TO RAISE NEW MONEY AS WELL AS TO
REFUND REVENUE BONDS OUTSTANDING

AMONG OTHER LARGE OFFERINGS PLANNED IS A 600 MILLION GENERAL OBLIGATION
REFUNDING BOND DEAL FROM GEORGIA UNDERWRITTEN BY A FIRST BOSTON CORP
GROUP THE STATE ENJOYS HIGH CREDIT RATINGS FROM THE MAJOR RATING AGENCIES

IN YESTERDAY'S TRADING OF SECONDARY ISSUES THE 570 WASHINGTON PUBLIC
POWER SUPPLY SYSTEM NUCLEAR PROJECT NO 1 REVENUE REFUNDING SERIES A BONDS
DUE 2017 ENDED UNCHANGED AT 99 3/8 TO YIELD 572 THE 675 DENVER CITY AND
COUNTY AIRPORT REVENUE SERIES C BONDS DUE 2022 ENDED 1/8 HIGHER AT 102 3/4
TO YIELD 650

PRICES OF MORTGAGE SECURITIES ENDED GENERALLY HIGHER IN ANOTHER QUIET
SESSION

IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES
FOR AUGUST DELIVERY ENDED 4/32 HIGHER AT 99 26/32 FEDERAL HOME LOAN
MORTGAGE CORP GOLD 65 ISSUES ENDED 2/32 HIGHER AT 99 19/32 AND FEDERAL
NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 3/32 HIGHER AT 99 15/32

SEVERAL NEW ISSUES WERE ANNOUNCED IN THE PRIMARY MARKET INCLUDING A HYBRID
TRANSACTION FOR FREDDIE MAC THAT ILLUSTRATES THE LENGTHS DEALERS WILL GO TO
OFFER INVESTORS BONDS THAT WON'T SUFFER IF RATES FALL OR EVEN RISE

THE 259 MILLION ISSUE OFFERED BY DAIWA SECURITIES AMERICA IS A BLEND OF
PRINCIPALONLY AND INTERESTONLY SECURITIES FROM A STRIPS TRUST BACKED BY 7
SECURITIES AS WELL AS SEVEN PLANNED AMORTIZATION CLASS IOS FROM SEVEN
PREVIOUSLY ISSUED FREDDIE MAC TRANSACTIONS A PAC IS A BOND DESIGNED TO
RETAIN ITS VALUE WITHIN A SPECIFIC SET OF PREPAYMENT SPEEDS THE PAC IOS
WERE EACH PART OF ONE OF SEVEN FREDDIE MAC DEALS BACKED BY 85 COLLATERAL
ISSUED WITHIN THE PAST YEAR OR SO

ALL THESE BONDS ARE MEANT TO PLAY OFF ONE ANOTHER TO CREATE A POSITIVELY
CONVEX SECURITY OR A BOND THAT WON'T LOSE VALUE IF HIT BY A BARRAGE OF
PREPAYMENTS OR A RISE IN INTEREST RATES

DAIWA OFFICIALS SAY THE EFFECT IS LIKE A PORTFOLIO TRADE THAT A SAVVY
INVESTMENT MANAGER MIGHT EXECUTE

INVESTORS SAY HOWEVER THAT BLENDING SECURITIES CREATES CONFUSION DAIWA
OFFICIALS HOWEVER WOULD NOT ELABORATE ON THE DEAL'S CONSTRUCTION AND WOULD
NOT OFFER PRICING DETAILS FREDDIE MAC OFFICIALS WERE NOT AVAILABLE TO
COMMENT

JOHN HUGHES CONTRIBUTED TO THIS ARTICLE 9307130105 930713 ECONOMY US
CUTS FORECAST OF CORN HARVEST 76 SOYBEANS 34 ON FARMBELT FLOODING 
 BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO THE AGRICULTURE DEPARTMENT IN AN UNUSUAL MOVE BEGAN CUTTING ITS
FORECAST OF US CORN AND SOYBEAN PRODUCTION TO REFLECT MOUNTING FLOOD
DAMAGE IN THE FARM BELT

THE GOVERNMENT LOWERED ITS CORNHARVEST FORECAST 76 TO 785 BILLION
BUSHELS FROM ITS ORIGINAL FORECAST FOR AN 85BILLIONBUSHEL HARVEST THE
NEW FORECAST IS 17 SMALLER THAN LAST YEAR'S RECORD CORN HARVEST

THE AGRICULTURE DEPARTMENT ALSO TRIMMED ITS SOYBEANHARVEST FORECAST 34 TO
198 BILLION BUSHELS THE NEW FORECAST IS 10 LOWER THAN THE 1992 SOYBEAN
CROP AUGUST INSPECTIONS THE DEPARTMENT RARELY ADJUSTS ITS HARVEST FORECASTS
SO SIGNIFICANTLY THIS EARLY IN THE GROWING SEASON PREFERRING INSTEAD TO
ASSUME NORMAL YIELDS UNTIL GOVERNMENT SURVEYORS BEGIN INSPECTING FIELDS FOR
THE FIRST TIME IN AUGUST

BUT ROUGHLY FIVE MILLION MIDWEST ACRES WEREN'T PLANTED AS EXPECTED OR HAVE
BEEN WASHED OUT AND CROPS IN SOME PARTS OF THE REGION ARE GROWING AT THE
SLOWEST PACE IN NEARLY 30 YEARS

THE MOVE HAS WIDESPREAD IMPLICATIONS IT WILL REINFORCE A BUDDING TREND
AMONG ECONOMISTS TO BOOST THEIR FOODINFLATION FORECASTS FOR THIS YEAR AND
THE SMALLER CROP OUTLOOK WILL HELP THE CLINTON ADMINISTRATION PRESS ITS CASE
TO CONGRESS FOR FARM DISASTER AID BUT THE MOVE ALSO SIGNALS THAT DOMESTIC
GRAIN STOCKPILES COULD BECOME UNCOMFORTABLY TIGHT BY NEXT YEAR A SITUATION
THAT MIGHT WEAKEN THE ADMINISTRATION'S RATIONALE FOR SUBSIDIZING US GRAIN
EXPORTS

ALTHOUGH UNUSUAL THE GOVERNMENT IS MOVING CAUTIOUSLY TO LOWER ITS HARVEST
FORECASTS MANY GRAIN TRADERS ALREADY FIGURE THAT THE POTENTIAL SIZE OF THE
FLEDGLING CORN CROP HAS SHRUNK 10 IN RECENT WEEKS

PREDICTING THE SIZE OF AMERICA'S MAJOR CROPS IS UNUSUALLY DIFFICULT THIS
YEAR CROP ANALYSTS DON'T HAVE MUCH EXPERIENCE CALCULATING RAIN DAMAGE AND
WEATHER CONDITIONS VARY WIDELY OVER THE FARM BELT

THE GOVERNMENT REPORTS WERE RELEASED AFTER THE CLOSE OF TRADING YESTERDAY AT
THE CHICAGO BOARD OF TRADE WHERE UNCERTAINTY OVER THE SIZE OF THE US CORN
AND SOYBEAN CROPS IS TRIGGERING WILD PRICE SWINGS

PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SANK AMID A PROFITTAKING WAVE
AND CONFLICTING WEATHER FORECASTS THE SOYBEAN CONTRACT FOR JULY DELIVERY
DROPPED 125 CENTS A BUSHEL TO SETTLE AT 69750 A BUSHEL THE CORN CONTRACT
FOR JULY DELIVERY SKIDDED 425 CENTS A BUSHEL TO SETTLE AT 23025 A BUSHEL

SOME METEOROLOGISTS EXPECT A RETURN TO MORE NORMAL WEATHER OVER PARTS OF THE
SODDEN MIDWEST LATER THIS WEEK THAT WOULD HELP TO EASE FLOODING BUT
FORECASTERS AREN'T SURE WHETHER A LONG STRING OF EXCESSIVELY WET MONTHS IS
COMING TO AN END

THE IOWA CORN CROP IS ONLY TWOTHIRDS AS TALL AS IT SHOULD BE AT THIS TIME
OF SEASON THE CROP USUALLY BEGINS TO POLLINATE IN ABOUT ONE WEEK BUT AT
THIS YEAR'S RATE THE CRUCIAL REPRODUCTION STAGE MIGHT NOT OCCUR UNTIL
AUGUST IF THAT HAPPENS THE CROP HAS A POOR CHANCE OF REACHING MATURITY
AND ITS FULLEST POTENTIAL YIELD IF FROST ENDS THE GROWING SEASON AT THE
USUAL TIME

WE ARE FAST LOSING WHATEVER CUSHION WE HAD SAID GARREN BENSON AN IOWA
STATE UNIVERSITY AGRONOMIST

IN ILLINOIS ONLY 3 OF THE CORN CROP HAS BEGUN TO POLLINATE COMPARED WITH
THE FIVEYEAR AVERAGE OF 35 AND ONLY 13 OF THE STATE'S SOYBEAN CROP IS
GOING THROUGH ITS REPRODUCTION STAGE CALLED BLOOMING COMPARED WITH A
FIVEYEAR AVERAGE OF 44 BY NOW

ACCORDING TO WEEKLY SURVEYS OF GROWERS IN THE MAJOR FARM STATES ONLY 9 OF
MINNESOTA CORN FIELDS ARE IN EXCELLENT TO GOOD CONDITION COMPARED WITH 54
LAST YEAR AT THIS TIME MINNESOTA SOYBEAN FIELDS ARE DETERIORATING 55 ARE
RATED POOR TO VERY POOR COMPARED WITH 47 LAST WEEK

SOME MAJOR CORN AND SOYBEAN STATES ARE ENJOYING FAVORABLE WEATHER AND
FARMERS THERE COULD REAP BUMPER CROPS THIS FALL IN OHIO FOR EXAMPLE 74
OF THE CORN CROP IS IN EXCELLENT TO GOOD CONDITION AND 68 OF THE SOYBEAN
CROP IS RATED SIMILARLY

ANY FOODPRICE INFLATION CAUSED BY SMALLERTHANEXPECTED CROPS IN SOME
MIDWEST STATES MIGHT ALSO BE MODERATED BY THE LARGE WHEAT CROP EXPECTED IN
THE SOUTHERN PLAINS AMONG OTHER PLACES

THE AGRICULTURE DEPARTMENT SAID YESTERDAY IT EXPECTS US WHEAT FARMERS TO
HARVEST 26 BILLION BUSHELS UP 58 FROM LAST YEAR MUCH OF THE SOUTHERN
PLAINS HAS ESCAPED THE BRUNT OF THE EXCESSIVELY WET WEATHER THAT IS FLOODING
THE MISSISSIPPI MISSOURI AND ILLINOIS RIVERS

STILL THE MIDWEST DELUGE SPELLS TROUBLE FOR BIG GRAIN PROCESSORS SUCH AS
ARCHERDANIELSMIDLAND CO OF DECATUR ILL WHICH IS THE NATION'S BIGGEST
ETHANOL PRODUCER AND A MAJOR SUPPLIER OF CORNBASED SWEETENER TO SOFTDRINK
COMPANIES

ACCORDING TO DAVID C NELSON AN ANALYST AT NATWEST SECURITIES IN
WASHINGTON ARCHERDANIELS MIGHT HAVE DIFFICULTY QUICKLY PASSING ALONG ITS
HIGHER COST OF BUYING CORN BECAUSE ETHANOL PRICES ARE WEAKENING AT THE
SAME TIME TRANSPORTATION DISRUPTIONS CAUSED BY FLOODING THROUGHOUT THE FARM
BELT ARE COSTING THE COMPANY ABOUT 1 MILLION DAILY IN LOST BUSINESS AND
HIGHER COSTS 9307130104 930713 PENTAGON CUTBACKS ON LOCKHEED'S F22 
WOULD MAKE FIGHTER'S COST SOAR 50  BY JEFF COLE STAFF REPORTER OF
THE WALL STREET JOURNAL

THE COST OF LOCKHEED CORP'S PRIZED F22 FIGHTER JET WOULD SOAR NEARLY 50
TO 130 MILLION EACH WITH THE FLEETSIZE CUTBACKS UNDER CONSIDERATION AT
THE PENTAGON

SENIOR AIR FORCE OFFICIALS WHO DEVELOPED THE ESTIMATES AND LOCKHEED
MANAGERS NOW FACE THE WORRISOME PROSPECT THAT SHARP INCREASES IN THE
PROJECTED COST OF EACH PLANE WILL PROVIDE FUEL FOR POLITICAL OPPONENTS WHO
WANT TO CHOP FUNDING FROM THE SERVICE'S LARGEST ACQUISITION PROGRAM

I'M SURE IT WILL DRAW SUCH FIRE TOM GRAVES DEPUTY DIRECTOR OF THE AIR
FORCE'S F22 SYSTEM PROGRAM OFFICE SAID IN AN INTERVIEW HE SAID HE IS
PARTICULARLY WARY OF FURTHER CONGRESSIONAL CUTS IN THE 114 BILLION
ENGINEERING AND MANUFACTURINGDEVELOPMENT PHASE OF THE F22 PROGRAM
CONGRESS LOPPED OFF 200 MILLION IN EARLYPHASE FUNDING LAST YEAR A MOVE
THAT HELPED SLOW DEVELOPMENT AND NUDGE COSTS UP BY 12 BILLION

FOR NOW THE AIR FORCE OFFICIALLY HAS 648 OF THE HIGHTECHNOLOGY JETS ON
ORDER AT A TOTAL COST OF ABOUT 96 BILLION EXCLUDING CERTAIN DEVELOPMENT
COSTS THAT EQUALS ROUGHLY 87 MILLION EACH BUT WHEN THE PENTAGON REVEALS
ITS NEW PLANS IN PRESENTATIONS TO CONGRESSIONAL COMMITTEES SCHEDULED FOR
NEXT WEEK THE TOTAL NUMBER TO BE BOUGHT IS WIDELY EXPECTED TO PLUMMET

MR GRAVES SAID THAT WHILE HE DOESN'T KNOW PRECISELY HOW THE AX WILL FALL
FOR PLANNING PURPOSES HIS OFFICE IS BETTING THAT THE PROGRAM WILL BE CUT
TO ABOUT 442 AIRPLANES INCREASING THE PERPLANE COST TO 130 MILLION

MR GRAVES WHOSE OFFICE IS AT WRIGHT PATTERSON AIR FORCE BASE IN DAYTON
OHIO NOTED THAT CUTBACKS IN THE NUMBER OF B2 BOMBERS ORDERED FROM 132 TO
THE CURRENT 20 PUSHED THAT PROGRAM'S PERAIRCRAFT COST STEADILY UPWARD THE
PHENOMENON IS ONE OF THE THINGS WE'RE TRYING TO AVOID WITH THIS PROGRAM
HE SAID

A LOCKHEED SPOKESMAN SAID THE COMPANY WON'T COMMENT ON F22 PERAIRCRAFT
COSTS AND RELATED ISSUES BECAUSE THE PENTAGON HAS YET TO UNVEIL ITS
SOCALLED BOTTOMUP REVIEW OF MILITARY FORCE STRUCTURE AND EQUIPMENT NEEDS
PRESENTATIONS TO CONGRESSIONAL COMMITTEES ON FINDINGS FROM THE REVIEW ARE
SCHEDULED TO BEGIN NEXT WEEK

DEPUTY DEFENSE SECRETARY WILLIAM PERRY SAID RECENTLY THAT HE WOULD BE
SURPRISED IF F22 PURCHASES WERE TO FALL BELOW 300 AIRCRAFT THE PENTAGON'S
SPENDING PLANS ARE HARDLY THE LAST WORD ON FIGHTER ACQUISITIONS WHICH STILL
HAVE TO WEAVE THROUGH CONGRESS

ANY DRAMATIC CUT IN THE F22 REQUIREMENT SPELLS TROUBLE FOR LOCKHEED AND
PARTNER BOEING CO WHICH CONTROLS ONETHIRD OF THE CONTRACT TO DEVELOP THE
PLANE EARLIER THIS YEAR LOCKHEED ACQUIRED GENERAL DYNAMICS CORP'S
AIRCRAFT DIVISION INCLUDING ITS ONETHIRD F22 SHARE A BIG PURCHASING
CUTBACK DOES NOT NECESSARILY MEAN LOWER REVENUE FROM THE PROGRAM FOR
COMPANIES OVER THE LONG HAUL ALTHOUGH HIGHER PERJET COSTS ARE ABSORBED BY
THE GOVERNMENT THE COMPANY TOO MUST SCRAMBLE TO TRIM PERAIRCRAFT COSTS
TO PROTECT THE PROGRAM POLITICALLY

MANAGERS ARE NOW SIFTING THROUGH POSSIBLE SOLUTIONS INCLUDING EMPLOYING
LEAN MANUFACTURING TECHNIQUES BEYOND THOSE ALREADY PLANNED AND
SUBSTITUTING MATERIALS IN THE FIGHTER AND ITS ENGINES WITHOUT MAKING MAJOR
SACRIFICES IN PERFORMANCE THE F22 AIMS TO EMPLOY NUMEROUS ADVANCED
TECHNOLOGIES TO BECOME A STEALTHY AIRSUPERIORITY FIGHTER FLYING LONG
DISTANCES AND AT SUPERSONIC SPEEDS WHILE EVADING DETECTION

MR GRAVES CAUTIONED THAT HE DOESN'T EXPECT ANY ENORMOUS SAVINGS FROM THOSE
COSTCUTTING EFFORTS GIVEN THE TECHNICAL CHALLENGES AT HAND

OF THE NEW HARDWARE AND SOFTWARE SYSTEMS ON THE FIGHTER HE SAID
DEVELOPMENT IS PROGRESSING GENERALLY ON SCHEDULE A NOTABLE EXCEPTION IS
DEVELOPMENT OF THE ENGINE AT UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY
DIVISION MR GRAVES SAID THE ENGINE HAS MISSED FUELCONSUMPTION TARGETS AND
ENCOUNTERED STRESS PROBLEMS IN SOME COMPONENTS

ANOTHER F22 PROGRAM PROBLEM HAS BEEN CONTROLLING CORPORATE OVERHEAD COSTS
AS THE COMPANIES INVOLVED HAVE LOST OTHER DEFENSE CONTRACTS THEY HAVE
LOADED MORE CORPORATE EXPENSES ONTO THE FIGHTER PROGRAM MR GRAVES SAID
BOEING AND PRATT & WHITNEY HAVE CORRECTED OVERHEAD PROBLEMS AND LOCKHEED
HAS IMPROVED OVERHEAD CONTROL AT ITS MARIETTA GA AIRCRAFT PLANT HE SAID
LOCKHEED FORT WORTH CO THE AIRCRAFT OPERATION ACQUIRED FROM GENERAL
DYNAMICS IS EXPECTED TO SHOW SAVINGS BASED ON NEW PLANS

HOWEVER HE SAID THE AIR FORCE HAS A CONCERN ABOUT THE FINANCIAL IMPACT
ON LOCKHEED OF REDUCED US PURCHASES OF F16 FIGHTERS MADE IN FORT WORTH
TEXAS AND FUTURE SALES OF C130 TRANSPORTS MADE IN MARIETTA HE SAID F22
CONTRACTORS ARE EXPECTED TO PRODUCE PLANS FOR RAPIDLY SHEDDING THE COST OF
IDLED ASSETS WHEN THEIR DEFENSE PRODUCTION LINES SLOW OR STOP 9307130103
930713 MONEY RATES

THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL
LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS

PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF
THE NATION'S 30 LARGEST BANKS

FEDERAL FUNDS 3 1/8 HIGH 3 1/16 LOW 3 1/16 NEAR CLOSING BID 3 1/16
OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS
OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC

DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE
FEDERAL RESERVE BANKS

CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL
SOURCE TELERATE SYSTEMS INC

COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30
TO 59 DAYS 312 60 TO 89 DAYS 313 90 TO 119 DAYS 315 120 TO 149
DAYS 320 150 TO 179 DAYS 325 180 TO 229 DAYS 330 230 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS 315 30 DAYS 317 60 DAYS 319 90 DAYS

CERTIFICATES OF DEPOSIT 261 ONE MONTH 267 TWO MONTHS 270 THREE
MONTHS 286 SIX MONTHS 305 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR
NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS
OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE
SECONDARY MARKET 312 ONE MONTH 318 THREE MONTHS 332 SIX MONTHS

BANKERS ACCEPTANCES 307 30 DAYS 309 60 DAYS 311 90 DAYS 316 120
DAYS 320 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE
BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER

LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO
MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3
3/8 3 1/4 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE
MONTHS 3 1/2 SIX MONTHS 3 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 697 60 DAYS 705 STANDARD
CONVENTIONAL FIXEDRATE MORTGAGES 4125 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 690 60
DAYS 700 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE
CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC

MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN
AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS
9307130102 930713 KEY INTEREST RATES

ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL
RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JUNE 30 1993 CYIELDS
ADJUSTED FOR CONSTANT MATURITY 9307130101 930713 WHO'S NEWS EASTMAN
KODAK

EASTMAN KODAK ROCHESTER NY HARRY A SHOFF 60 YEARS OLD FORMERLY
PRESIDENT OF SANOFI WINTHROP PHARMACEUTICALS USA THE US DRUG UNIT OF
STERLING WINTHROP INC WAS PROMOTED TO THE NEWLY CREATED POST OF VICE
PRESIDENT OPERATIONS FOR STERLING WINTHROP PHARMACEUTICALS GROUP A GLOBAL
UNIT OF THIS PHOTOGRAPHIC AND CHEMICAL PRODUCTS CONCERN'S STERLING WINTHROP
DRUG AND HEALTH SUBSIDIARY HE IS SUCCEEDED BY DANIEL L PETERS 41 WHO WAS
EXECUTIVE VICE PRESIDENT OF SANOFI WINTHROP 9307130100 930713 OTC FOCUS
 MARKET RISES ON NEWS OF QVC'S PLAN TO MERGE A TELECOMMUNICATIONS RALLY
  BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK DEFYING DECLINES IN THE PRICES OF A FEW BIG TECHNOLOGY STOCKS
THE OVERTHECOUNTER MARKET ROSE ON QVC NETWORK'S MERGER NEWS AND RALLIES IN
TELECOMMUNICATIONS STOCKS

THE NASDAQ COMPOSITE INDEX CLIMBED 186 OR 026 TO 70767 ADVANCING
ISSUES OUTNUMBERED DECLINERS 1400 TO 1306 ON TOTAL VOLUME OF 2025 MILLION
SHARES DOWN FROM FRIDAY'S 2137 MILLION SHARES

BUT THE NASDAQ 100 INDEX A MEASURE OF THE LARGEST NONFINANCIAL OTC STOCKS
EDGED UP ONLY 082 TO 72574 ANALYSTS BLAMED THE WEAKNESS MOSTLY ON
MICROSOFT'S DECLINE OF 7/8 TO 83 3/4 AND INTEL'S FALL OF 3/8 TO 55 5/8

IN EARLY TRADING INTEL SLIPPED AS LOW AS 53 AFTER THE COMPANY ANNOUNCED
SECONDQUARTER EARNINGS OF 130 A SHARE UP FROM 50 CENTS A SHARE A YEAR
AGO ALTHOUGH THE RESULTS WERE IN LINE WITH ANALYSTS' PROJECTIONS SOME
INVESTORS WHO HAD BEEN HOPING THE GIANT SEMICONDUCTOR COMPANY WOULD BE ABLE
TO BEAT THOSE EXPECTATIONS SOLD

LATER INTEL LAID TO REST FEARS THAT IT IS LOSING ITS EARNINGS MOMENTUM IN
AN AFTERNOON CONFERENCE CALL INTEL EXECUTIVES REASSURED ANALYSTS THAT THE
COMPANY WILL INCREASE SHIPMENTS OF ITS NEXTGENERATION PENTIUM
MICROPROCESSOR SOONER THAN EXPECTED INTEL SAID IT SEES ITS THIRDQUARTER
REVENUE RISING FROM ITS SECONDQUARTER LEVEL OF 213 BILLION

SOME BIG TELECOMMUNICATIONS AND CABLE STOCKS PROPELLED THE MARKET UPWARD
MCCAW CELLULAR COMMUNICATIONS JUMPED 1 TO 47 3/4 MCI COMMUNICATIONS EDGED
UP 5/8 TO 28 3/8 AND TELECOMMUNICATIONS ROSE 1/8 TO 22

THERE'S A LOT OF INTEREST IN THE TELECOMMUNICATIONS STOCKS SAID PETER
DAPUZZO HEAD OF OTC TRADING AT CANTOR FITZGERALD THEY'RE THE MOST ACTIVE
AND HAVE THE MOST BUYERS RIGHT NOW

BUT OVERALL THE ACTIVITY IN THE MARKET HAS SLIGHTLY SLOWED DOWN SAID HEDI
REYNOLDS HEAD OF NASDAQ TRADING AT MORGAN KEEGAN & CO MEMPHIS TENN IT
DOESN'T FEEL LIKE THE MARKET IS UP SHE SAID IT FEELS SLOW AND ONLY IN A
FEW SPECIAL SITUATIONS ARE THE STOCKS RISING

QVC NETWORK LEAPED 2 1/2 TO 67 3/4 QVC NETWORK A TELEVISED HOME SHOPPING
PROGRAM SAID IT HAS MADE A PROPOSAL TO HOME SHOPPING NETWORK TO MERGE
THROUGH A STOCK SWAP QVC SAID THE TRANSACTION WOULD PROVIDE FOR A TAXFREE
EXCHANGE IN WHICH EACH OUTSTANDING QVC COMMON SHARE WILL BE EXCHANGED FOR
FIVE HOME SHOPPING COMMON SHARES QVC SHAREHOLDERS WILL ALSO RECEIVE A
SECURITY ENTITLING THEM TO RECEIVE IN CONNECTION WITH CERTAIN LIABILITIES
OF HOME SHOPPING ADDITIONAL HOME SHOPPING COMMON SHARES UP TO A VALUE EQUAL
TO 10 OF THE VALUE OF ITS OUTSTANDING CAPITAL STOCK

ACCORDING TO HOME SHOPPING NETWORK QVC PROPOSED THAT HOME SHOPPING WOULD
REMAIN LISTED ON THE NEW YORK STOCK EXCHANGE WHERE IT ROSE 1 TO 13 5/8 AND
WOULD CHANGE ITS NAME TO QVC NETWORK INC

IN A RELATED MOVE SILVER KING COMMUNICATIONS SURGED 3 7/8 TO 16 1/4 QVC
SAID THAT IF THE MERGER WITH HOME SHOPPING IS SUCCESSFUL THE COMBINED
COMPANY INTENDS TO PURCHASE FROM LIBERTY MEDIA AN OPTION TO PURCHASE TWO
MILLION SHARES OF SILVER KING COMMUNICATIONS INC LIBERTY MEDIA CORP THE
CONTROLLING SHAREHOLDER OF HOME SHOPPING NETWORK FELL 1/8 TO 23

LEGENT TUMBLED 3 1/8 TO 27 7/8 AFTER HAMBRECHT & QUIST TRIMMED ITS EARNINGS
ESTIMATE TO 228 A SHARE FROM 230 A SHARE FOR THE CURRENT FISCAL YEAR
AFTER TRADING CLOSED LEGENT A SOFTWARE MAKER SAID IT EXPECTS TO EARN 26
CENTS FOR THE THIRD QUARTER ENDED JUNE 30 COMPARED WITH 38 CENTS A YEAR
EARLIER FIRST CALL A UNIT OF THOMSON FINANCIAL NETWORKS REPORTED A MEAN
EARNINGS ESTIMATE OF 53 CENTS A SHARE FOR THE QUARTER THE COMPANY BLAMED A
SIGNIFICANT SHORTFALL IN NEW LICENSE REVENUE IN NORTH AMERICA LEGENT ALSO
SAID ITS BOARD AUTHORIZED THE COMPANY TO REPURCHASE UP TO 35 MILLION SHARES
OF ITS COMMON STOCK FROM TIME TO TIME IN OPEN MARKET TRANSACTIONS

SLM INTERNATIONAL JUMPED 1 3/4 TO 36 1/2 SLM INTERNATIONAL SAID IT REACHED
AN AGREEMENT WITH KENSBROOK DEVELOPMENT TO EXCLUSIVELY LICENSE KENSBROOK'S
ALKALINE BATTERY RECHARGING TECHNOLOGY FOR SIZES AAA AA C D AND NINE VOLT
BATTERIES THE NEW YORK COMPANY SAID THE LICENSE DOES NOT INCLUDE BATTERIES
FOR CELLULAR PHONES COMPUTERS OR OTHER SPECIAL BATTERY APPLICATIONS THE
LICENSE AGREEMENT IS SUBJECT TO SLM INTERNATIONAL'S DUE DILIGENCE WHICH
INCLUDES TESTING AND CONFIRMATION OF KENSBROOK'S RESULTS BY INDEPENDENT
TESTING LABORATORIES

STATEOMAINE SLID 1 1/4 TO 23 1/4 PAINEWEBBER CUT ITS RATING ON THE NEW
YORK COMPANY TO NEUTRAL FROM ATTRACTIVE AN ANALYST SAID THE MAKER OF
MEN'S AND WOMEN'S APPAREL AND FURNISHINGS HAS TOO MUCH INVENTORY AND WILL
LIKELY HAVE TO DISCOUNT MERCHANDISE TO MOVE IT

SCICLONE PHARMACEUTICALS FELL 1/4 TO 15 1/4 AFTER TRADING ON FRIDAY THE
SAN MATEO CALIF COMPANY SAID IT WILL REDEEM ITS 4258231 OUTSTANDING
REDEEMABLE WARRANTS AT 9 AM EDT ON AUG 9 THE COMPANY SAID EACH WARRANT
ENTITLES THE HOLDER TO BUY ONE COMMON SHARE FOR 943 UNTIL 5 PM EDT ON
FRIDAY AUG 6 SCICLONE ENGAGES IN THE ACQUISITION AND DEVELOPMENT OF
PHARMACEUTICALS THAT IT INTENDS TO MARKET 9307130099 930713 SOME
METEOROLOGISTS REAP WINDFALL FROM CROP FUTURES MARKETS  BY WARREN
GETLER STAFF REPORTER OF THE WALL STREET JOURNAL

DAVE DUSIK HAS MADE A 250 RETURN TRADING COMMODITIES IN THE PAST MONTH

OF COURSE HE HAS HAD SOME SPECIAL INSIGHTS

THE 42YEAROLD MR DUSIK IS A SENIOR METEOROLOGIST AT TELEVISION STATION
WDAF IN KANSAS CITY MO AND MOONLIGHTS AS A COMMODITIES TRADER PUTTING
HIS MONEY WHERE HIS MOUTH IS HE'S MADE A KILLING IN SOYBEANS A MONTH AGO
HE CORRECTLY PREDICTED AND BET ON THE DRENCHING RAINS THAT ARE WIPING OUT
ACRES OF SOYBEANS AND HAVE DRIVEN BEAN PRICES THROUGH THE ROOF ON THE
CHICAGO BOARD OF TRADE

SCOFF IF YOU WILL AT THE ACCURACY OF WEATHER FORECASTS BUT THE FACT IS THAT
SOME METEOROLOGISTS ARE MAKING MONEY APPLYING THEIR PREDICTIVE SKILLS TO THE
MARKETS

WEATHERMEN CAN TRADE PRETTY SUCCESSFULLY IF YOU KNOW WHAT TO LOOK FOR
SAYS DAVE RELIHAN HEAD WEATHERMAN FOR WIBWTV IN TOPEKA KAN WEATHER IS
PROBABLY 65 TO 70 OF THE MARKET BETWEEN PLANTING AND HARVEST SEASON THE
JUMP IN SOYBEAN PRICES IN THE PAST THREE WEEKS HAS BEEN 100 WEATHER

JAMES ROEMER OWNER OF ROEMER WEATHER A RALEIGH NC METEOROLOGICAL
ADVISORY SERVICE FOR FARMERS AND COMMODITY TRADERS LEFT TELEVISION
METEOROLOGY IN 1987 TO START HIS FIRM AND TRADE COMMODITIES FOR HIS OWN
ACCOUNT AND FOR OTHERS

MORE AND MORE METEOROLOGISTS ARE REALIZING HOW MUCH MONEY CAN BE MADE OR
LOST TRADING COMMODITIES AND MORE ARE GETTING IN INVOLVED HE SAYS AT
LEAST TWO OR THREE TV METEOROLOGISTS CALL MY WEATHERTRADES HOTLINE
REGULARLY

MR ROEMER SAYS METEOROLOGICAL INTEREST IN COMMODITIES MARKETS WAS PIQUED A
DECADE AGO BY EL NINO A RECURRENT PHENOMENON IN WHICH A WARMING IN THE
CENTRAL PACIFIC OFF THE COAST OF PERU CREATES MAJOR DISRUPTIONS IN WEATHER
PATTERNS ALL OVER THE WORLD AN EL NINO WAS BLAMED FOR MAJOR DROUGHTS IN THE
US IN 1983 AND 1988 AND ANOTHER MAY BE CONTRIBUTING TO THE FLOODS SWEEPING
THE MIDWEST AND IT ISN'T JUST EL NINO THAT MOVES MARKETS

HURRICANE ANDREW AFFECTED NATURAL GAS AND LUMBER PRICES AND THE BIG
BLIZZARD THAT PARALYZED THE NORTHEASTERN UNITED STATES LAST DECEMBER HAD A
BIG IMPACT ON NATURAL GAS AND HEATING OIL PRICES HE SAYS

NOT EVERYONE THINKS IT'S CRICKET FOR METEOROLOGISTS TO BE PLAYING THE
MARKETS FEARS ABOUND THAT AVARICE MAY INFLUENCE THEIR FORECASTS

IT'S A DANGEROUS BUSINESS WARNS TOM SKILLING CHIEF WEATHER FORECASTER
FOR WGNTV IN CHICAGO HE IS AWARE OF RUMORS IN THE CHICAGO COMMODITY
MARKETS THAT HE TRADES AGRICULTURAL FUTURES CONTRACTS BUT HE FLATLY DENIES
THEM

I DON'T THINK WE WEATHERMEN HAVE ANY PLACE IN THE MARKET HE SAYS IT
COULD HAVE THE APPEARANCE OF IMPROPRIETY WHICH COULD DAMAGE CREDIBILITY
AND AS WEATHER FORECASTERS IF YOU DON'T HAVE CREDIBILITY WHAT ELSE DO YOU
HAVE

PETER LEAVITT AN EXECUTIVE AT WEATHER SERVICES CORP A PRIVATE WEATHER
CONSULTING FIRM IN BEDFORD MASS DISAGREES IF YOU BELIEVE IN YOUR
FORECAST AND YOU PUT YOUR MONEY BEHIND IT YOUR CLIENTS WILL AT LEAST KNOW
YOU'RE PAYING ATTENTION AND THERE'S NOTHING ILLEGAL OR IMMORAL ABOUT IT

MR LEAVITT SAYS IT'S IMPORTANT THOUGH TO LET CLIENTS KNOW HIS TRADING
POSITION IF YOU HAVE A POSITION IT DOES COLOR WHAT YOU SAY HE CONCEDES
ALTHOUGH HE REFUSES TO DIVULGE HIS CURRENT POSITION IF YOU WERE A CLIENT
YOU'D KNOW HE SAYS

EVEN FOR A METEOROLOGIST BETTING ON THE WEATHER IS FAR FROM A SURE THING
WDAF'S MR DUSIK ADMITS THAT I'VE TAKEN SOME HUGE LOSSES IN MORE THAN FIVE
YEARS OF TRADING SURE I HAVE INSIDE KNOWLEDGE BUT THE WEATHER CAN BE
NEBULOUS YOU WIN SEVEN OUT OF 10 TIMES BY GOING WITH YOUR GUT FEELING

MR DUSIK CLAIMS THOUGH THAT VIEWERS WILL NEVER KNOW WHEN HE'S HAD A BAD
DAY IN THE OFTEN VOLATILE COMMODITIES ARENA YOU FAKE IT HE SAYS YOU
HAVE TO BE A GOOD ACTOR IN THIS BUSINESS TRADING IN ABSOLUTELY NO WAY
FLAVORS MY WEATHER BROADCASTING

SOME FORECASTERS TRY THEIR HAND AT COMMODITIES TRADING BUT DON'T STICK WITH
IT WIBW'S MR RELIHAN FOR EXAMPLE HASN'T DONE ANYTHING INTENSIVE IN
SEVERAL YEARS PRIMARILY BECAUSE I DIDN'T HAVE THE CAPITAL TO GET BACK IN
HE SAYS HE LOST 600 IN THE MARKET LAST YEAR ALTHOUGH HIS BEST YEAR
PRODUCED A GAIN OF 8000

SO WHAT'S THE FORECAST NOW

THE FLOODING WILL CONTINUE PREDICTS MR ROEMER THAT'S BAD FOR THE
NATION'S SOYBEAN CROP BUT GREAT FOR SOYBEAN PRICES 9307130096 930713
MARKETING BRIEF NOTED

WHO'S NEWS ECONOMIST NEWSPAPER LTD WHICH PUBLISHES THE ECONOMIST MAGAZINE
FROM LONDON NAMED WILLY MORGAN TO THE NEW POSITION OF NORTH AMERICAN
PUBLISHER OVERSEEING ADVERTISING SALES IN THE REGION HE WAS DIRECTOR OF
ADVERTISING BETH MAHER FORMERLY CIRCULATION MANAGER WAS NAMED GENERAL
MANAGER OF NORTH AMERICA RICHARD O'ROURKE ACCOUNTING AND FINANCE DIRECTOR
WAS NAMED NORTH AMERICAN CHIEF FINANCIAL OFFICER DAVID LAIRD PUBLISHER OF
CFO AND TREASURY WAS GIVEN THE ADDITIONAL POST OF HEAD OF DEVELOPMENT IN
NORTH AMERICA 9307130095 930713 WHO'S NEWS RAYTHEON CO

RAYTHEON CO LEXINGTON MASS ARTHUR E WEGNER 56 YEARS OLD WAS NAMED
SENIOR VICE PRESIDENT OF THIS ELECTRONICS AIRCRAFT AND DEFENSE CONCERN MR
WEGNER WHO WILL ALSO BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE
COMPANY'S BEECH AIRCRAFT UNIT FILLS POSITIONS PREVIOUSLY HELD BY MAX BLECK
66 WHO WAS APPOINTED RAYTHEON'S PRESIDENT IN 1991 MR WEGNER WILL REPORT
TO MR BLECK WHO REMAINS GROUP EXECUTIVE FOR AIRCRAFT PRODUCTS MR WEGNER
WAS EXECUTIVE VICE PRESIDENT OF UNITED TECHNOLOGIES CORP MANAGING THE
AEROSPACE AND DEFENSE OPERATIONS 9307130094 930713 INTERNATIONAL SHARP
LOOKS TO SOUTHEAST ASIA

TOKYO SHARP CORP EXPECTS TO PRODUCE ELECTRONIC PARTS IN CHINA AND
SOUTHEAST ASIA TO MEET GROWING DEMAND FROM THE REGION'S CONSUMER ELECTRONICS
MAKERS A SPOKESWOMAN FOR THE JAPANESE COMPANY SAID

IT IS CONDUCTING FEASIBILITY STUDIES AND A DECISION SHOULD COME WITHIN THE
YEAR SHE SAID SHARP MAKES TV TUNERS AND LIQUID CRYSTAL DISPLAYS AT A
TAIWAN FACILITY

AMONG THE CANDIDATES FOR SOUTHEAST ASIAN MANUFACTURE ARE LIGHTEMITTING
DIODES PHOTO COUPLERS AND SENSORS FOR TV REMOTE CONTROLS THE SPOKESWOMAN
SAID 9307130093 930713 WHO'S NEWS MISSION WEST PROPERTIES

MISSION WEST PROPERTIES SAN DIEGO MICHAEL M EARLEY 38YEAROLD SENIOR
VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF TRITON GROUP LTD AND MARK G
FOLETTA 33 VICE PRESIDENT CONTROLLER AND SECRETARY OF TRITON GROUP WERE
ELECTED DIRECTORS THEY SUCCEED CHARLES R SCOTT 65 PRESIDENT AND CHIEF
EXECUTIVE OFFICER OF FUQUA INDUSTRIES INC AND HIS SON PATRICK W SCOTT
39 PRESIDENT OF SCOTT DEVELOPMENT CO THE SCOTTS RESIGNED TO ALLOW TRITON
WHICH OWNS 53 OF MISSION'S COMMON STOCK TO HAVE ADDITIONAL BOARD
REPRESENTATION MISSION WEST IS A REAL ESTATE COMPANY ENGAGED IN DEVELOPING
OWNING AND OPERATING INCOME PROPERTY 9307130092 930713 CORPORATE FOCUS 
WALL STREET SEES A TURNAROUND DEVELOPING AT POLAROID  STRONG
RECEPTION FOR NEW SMALL CAMERA AND MEDICAL DEVICE LIFTS STOCK  BY
JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL

CAMBRIDGE MASS IS POLAROID CORP FINALLY TURNING AROUND

INVESTORS THINK SO THEY HAVE DRIVEN POLAROID'S SHARE PRICE UP 32 TO
3675 FROM 2775 IN THE PAST THREE MONTHS MAKING A WINNER OUT OF A STOCK
LONG GROUNDED BY DOUBTS ABOUT THE FUTURE OF INSTANT PHOTOGRAPHY

THE SURGE IS BEING STOKED BY POSITIVE RECEPTION IN EUROPE FOR THE COMPANY'S
NEW SMALLER INSTANT CAMERA WHICH WILL SOON BE SOLD IN THE US AS CAPTIVA
ANALYSTS ARE ALSO HAPPY ABOUT EARLY HOSPITAL PURCHASES OF HELIOS A NEW
MEDICALIMAGING SYSTEM THAT IS POLAROID'S FIRST MAJOR DEPARTURE FROM INSTANT
PHOTOGRAPHY WHICH ACCOUNTS FOR 85 OF SALES

NEITHER CAPTIVA NOR HELIOS STANDS TO MEAN MUCH FOR PROFITS FOR AT LEAST SIX
MONTHS INDEED WALL STREET EXPECTS POLAROID TO REPORT A 50 DECLINE IN
EARNINGS FOR THE SECOND QUARTER BUT POLAROID SAYS ITS NEW PRODUCTS ARE
MEETING OR BEATING EXPECTATIONS LEADING ANALYSTS TO PREDICT THAT EARNINGS
WILL BEGIN A STEADY RISE IN THE FOURTH QUARTER AS STARTUP COSTS BEGIN TO
WIND DOWN

ALTHOUGH IT'S TOO EARLY TO SAY WHETHER POLAROID HAS FINALLY FOUND THE ANSWER
TO THE LONGTERM DECLINE IN ITS FORTUNES THE COMPANY IS DEFINITELY EXUDING
MORE CONFIDENCE APART FROM AN EARLY RETIREMENT OFFER TO ABOUT 300 WORKERS
EARLIER THIS YEAR WORKFORCE LEVELS HAVE BEEN STEADY AT ABOUT 12000 FOR A
YEAR COMPANY OFFICIALS SAY INSTITUTIONAL INVESTORS HAVE COME AWAY IMPRESSED
AFTER RECENT TOURS OF A NEW ROBOTFILLED FACTORY FOR CAPTIVA OUTSIDE BOSTON

MOST IMPORTANTLY OF ALL SAYS I MACALLISTER BOOTH CHAIRMAN AND PRESIDENT
PEOPLE ARE FINALLY BEGINNING TO BELIEVE THAT POLAROID IS SERIOUS IN ITS
EFFORTS TO DEEMPHASIZE ITS STAKE IN INSTANT PHOTOGRAPHY AND ITS LOWGROWTH
PROSPECTS

WHILE WE'VE INVESTED HUNDREDS OF MILLIONS OF DOLLARS IN THAT CORE BUSINESS
IN THE PAST OUR PLAN IS TO SPEND TENS OF MILLIONS IN THE FUTURE SAYS MR
BOOTH

HELIOS IS THE FIRST MAJOR NONPHOTOGRAPHY PRODUCT TO COME OUT OF THAT GATE
A LASER SYSTEM THAT PRODUCES TRANSPARENCIES FROM ULTRASOUND SCANNERS AND
OTHER MEDICAL DIAGNOSTIC DEVICES WITHIN MINUTES HELIOS IS NOW BEING
MARKETED TO HOSPITALS AS A HIGHTECH COPY MACHINE FOR HOSPITAL DOCUMENTS
PRICES START AT 50000

ALEX HENDERSON ANALYST FOR PRUDENTIAL SECURITIES RESEARCH ESTIMATES THAT
THE PRODUCT WILL BRING IN 50 MILLION TO 60 MILLION THIS YEAR AND DOUBLE
THAT IN 1994 MR BOOTH SAYS ONLY THAT POLAROID WILL MEET ITS GOAL OF
SELLING HUNDREDS OF HELIOSES IN 1993 NOT THOUSANDS

AMONG THE MACHINE'S ATTRACTIONS IT PLUGS IN READY TO GO AND ELIMINATES THE
NEED FOR A DARKROOM AND CHEMICAL HANDLING WHILE OFFERING PICTURES OF
COMPARABLE QUALITY TO THE COMPETITION'S HELIOS PICTURES ARE AS GOOD IF NOT
BETTER THAN THOSE OF OTHER SYSTEMS SAYS DR HENRY GEWIRTZ DIRECTOR OF THE
NUCLEAR CARDIOLOGY DEPARTMENT AT MASSACHUSETTS GENERAL HOSPITAL WHICH IS
USING A MACHINE ON LOAN FROM POLAROID FOR A TRIAL ALTHOUGH DR GEWIRTZ
PREFERS VIEWING IMAGES ON A COMPUTER SCREEN FOR RADIOLOGISTS WHO INSIST ON
HARD COPY HELIOS CAN BE A REALLY NEAT THING

MR BOOTH ACKNOWLEDGES THAT HE IS A BIT NERVOUS THAT HELIOS IS BEING
INTRODUCED WHILE HOSPITALS NATIONWIDE ARE CUTTING BACK

IN TODAY'S ENVIRONMENT IT'S HARD TO BE HIGHTECH SAYS DACE JANSONS CHIEF
NUCLEARMEDICAL TECHNOLOGIST FOR BETH ISRAEL HOSPITAL IN BOSTON WHICH ALSO
HAS A LOANER FROM POLAROID BUT SHE ADDS THAT AT BETH ISRAEL WHERE MOST
IMAGES ARE STORED ON OPTICAL DISKS HELIOS IS ALMOST A NECESSITY PEOPLE
ARE ALWAYS BORROWING FILMS AND TAKING THEM TO CONFERENCES AND FORGETTING TO
RETURN THEM SHE SAYS SO NOW WHENEVER WE LOSE SOMETHING WE JUST HOOK
HELIOS UP TO A COMPUTER AND MAKE ANOTHER COPY

POLAROID'S LATEST INSTANT CAMERA MEANWHILE IS OFF TO A SOLID START IN
EUROPE IN GERMANY IT HAS BOOSTED POLAROID'S MARKET SHARE TO 15 FROM 11
SINCE ITS INTRODUCTION LAST FALL COMPANY OFFICIALS SAY USE OF FILM A KEY
SOURCE OF PROFITS HAS BEEN EQUAL TO OR BETTER THAN WITH PAST POLAROID
CAMERASAN ENCOURAGING SIGN BECAUSE FILM FOR THE VISION AS THE NEW CAMERA
IS KNOWN IN GERMANY IS MORE EXPENSIVE

THE CAMERA IS POLAROID'S LATEST HOPE AGAINST ITS 35MILLIMETER COMPETITORS
WHICH HAVE VASTLY OUTSOLD IT IN RECENT YEARS PARTLY BECAUSE OF THE STRONG
EUROPEAN RECEPTION PRUDENTIAL'S MR HENDERSON SAYS HE THINKS POLAROID CAN
SELL ABOUT ONE MILLION OF THE NEW CAMERAS WORLDWIDE THIS YEAR ABOVE HIS
INITIAL ESTIMATE OF 700000

INCLUDING OTHER MODELS POLAROID SOLD ABOUT FOUR MILLION CAMERAS LAST YEAR
UP FROM 39 MILLION IN 1991 AND UP SUBSTANTIALLY FROM THE 31 MILLION
CAMERAS SOLD IN 1990 FOLLOWING A MAJOR DISCOUNT PROGRAM THAT BOOSTED SALES
STILL CURRENTGENERATION SALES ARE A FAR CRY FROM THE PEAK OF NINE MILLION
CAMERAS IN 1978

INSTANT PHOTOGRAPHY A ONETIME NOVELTY LOST ITS EDGE AS 35MM CAMERAS
BECAME SMALLER CHEAPER AND BETTER OVER THE LAST DECADE ANALYSTS NOTE NOW
35MM CAMERAS OUTSELL INSTANTS 5TO1 OTHER DEVELOPMENTS INCLUDING ONEHOUR
PHOTOPROCESSING SERVICES HAVE ALSO BOLSTERED THE 35MM MARKET AND ON FILM
PRICE 35MM PHOTOGRAPHY IS HARD TO BEAT INSTANT PHOTOS COST ABOUT 1 EACH
COMPARED WITH ABOUT 40 CENTS FOR A 35MM PICTURE INDUSTRY PUBLICATIONS
REPORT IN A NOD TO THE COMPETITION POLAROID HAS STARTED DISTRIBUTING 35MM
CAMERAS TOO LAST WEEK IT INTRODUCED THREE 35MM MODELS TWO DISPOSABLE
TYPES THAT SELL FOR ABOUT 6 EACH AND A COMPACT CAMERA CALLED POLAROID 35MM
HIGH DEFINITION THAT WILL SELL FOR LESS THAN 90

IN THE US WHERE THE PRODUCT'S REAL SUCCESS WILL BE DECIDED POLAROID IS
READYING A 30 MILLION ADVERTISING BLITZ FOR CAPTIVA THE BIGGEST SINCE THE
ROLLOUT OF SPECTRA SEVEN YEARS AGO CAPTIVA IS DUE TO HIT STORES THIS MONTH
AS IT DID WITH SPECTRA POLAROID WILL FOCUS ON 35MM USERS WHO DON'T OWN
INSTANT CAMERAS

CAPTIVA IS SMALLER THOUGH NOT QUITE THE SIZE OF A POINTANDSHOOT 35MM
CAMERA SOME RETAILERS ALSO LIKE ITS BELLS AND WHISTLES USERS CAN WATCH THE
FILM DEVELOP IN THE CAMERA AND STORE PICTURES INSIDE BUT ITS RETAIL COST
120 TO 160 DEPENDING ON FEATURES MAY POSE SOME PROBLEMS

THE NEW CAMERA IS SEXIER THAN THE SPECTRA SAYS PETER LIEBMANN DIRECTOR
OF PURCHASING FOR WOLF CAMERA & VIDEO INC IN ATLANTA BUT DUE TO THE HIGH
PRICE IT WON'T SELL THAT WELL IN MASSMERCHANT STORES BESIDES HE ADDS
FOR 130 YOU CAN GET A PRETTY GOOD 35MM WOLF CAMERA WILL SELL THE CAMERA
FOR 150 WITH AN EXTENDED WARRANTY

BRENDA LEE LANDRY A MORGAN STANLEY ANALYST ESTIMATES THAT CAPTIVA COULD
HELP POLAROID'S CAMERA SALES TO REACH 46 MILLION THIS YEAR HELIOS AND
CAPTIVA ARE THE MAIN EVENTS IN 1994 AND 1995 SAYS MICHAEL W ELLMANN
ANALYST FOR WERTHEIM SCHRODER ON THE TWO THE STOCK HANGS 9307130091
930713 WHO'S NEWS HEYMAN IS NAMED TO MANAGEMENT POST AT SALOMON 
 BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK WILLIAM H HEYMAN AFTER A SHORT STINT POLICING WALL STREET IS
BACK IN THE SECURITIES BUSINESS

SALOMON BROTHERS INC NAMED MR HEYMAN A MANAGING DIRECTOR AND HEAD OF ITS
PRIVATEINVESTMENT DEPARTMENT EFFECTIVE IMMEDIATELY MR HEYMAN HAS SPENT
THE PAST TWO YEARS AS DEPUTY DIRECTOR AND THEN DIRECTOR OF MARKET REGULATION
AT THE SECURITIES AND EXCHANGE COMMISSION BEFORE THE SEC HE WORKED ON WALL
STREET FOR 13 YEARS

AT SALOMON MR HEYMAN WILL HELP TO COORDINATE BUSINESS BETWEEN SALOMON'S
SMALL PRIVATEINVESTMENT GROUP WHICH CATERS TO WEALTHY INDIVIDUAL
INVESTORS AND ITS ASSETMANAGEMENT OPERATIONS

THE APPOINTMENT BY THE SALOMON INC UNIT IS A BID TO BOLSTER THE FIRM'S
INCOME FROM RECURRING FEES FOR THE PAST FEW YEARS SALOMON HAS SOUGHT TO
BEEF UP ITS BROKERAGE AND ASSETMANAGEMENT BUSINESS THIS FEE INCOME HELPS
TO SMOOTH OUT EARNINGS BUMPS CURRENTLY SALOMON'S PROFITS PRIMARILY
DEPENDANT ON PROPRIETARY TRADING ARE THE MOST VOLATILE ON WALL STREET

BUT THE MOVE PROMPTED CRITICISM FROM WASHINGTON STEMMING FROM MR HEYMAN'S
ROLE AS A FEDERAL REGULATOR DURING HIS SEC TENURE THE AGENCY AMONG OTHER
THINGS NEGOTIATED A 290 MILLION CIVIL SETTLEMENT FROM SALOMON AFTER THE
FIRM ADMITTED IT VIOLATED BIDDING RULES IN A SERIES OF MULTIBILLIONDOLLAR
TREASURY AUCTIONS

HOUSE BANKING CHAIRMAN HENRY GONZALEZ D TEXAS DENOUNCED THE MOVE AS
EVIDENCE OF A COZY REVOLVINGDOOR RELATIONSHIP BETWEEN REGULATORS AND THE
INDUSTRIES THEY SUPERVISE IT'S HARD TO AVOID A NASTY TASTE OF IT BEING
ANYTHING THAN A REWARD FOR ACTIONS FAVORABLE TO THE EMPLOYER MR GONZALEZ
SAID

A SALOMON SPOKESMAN COULDN'T BE REACHED TO COMMENT IN A RELEASE SALOMON
BROTHERS CHAIRMAN DERYCK C MAUGHAN SAID OF MR HEYMAN HIS EXPERIENCE IN
RUNNING HIS OWN INVESTMENT PARTNERSHIP AND HIS BACKGROUND IN SECURITIES
REGULATION WILL ADD A GREAT DEAL OF VALUE FOR OUR PRIVATE INVESTMENT
CLIENTS

BEFORE HIS SEC POST MR HEYMAN WORKED FOR TWO YEARS MANAGING THE ARBITRAGE
DEPARTMENT AT PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO UNIT AND
STARTED ON WALL STREET 11 YEARS BEFORE BY FOUNDING AN INVESTMENT
PARTNERSHIP 9307130090 930713 BUSINESS BRIEF FROZEN FOOD EXPRESS
INDUSTRIES INC MEXICAN SERVICE IS EXPANDED TO INCLUDE SMALLER LOADS

FROZEN FOOD EXPRESS INDUSTRIES INC SAID IT WILL OFFER REFRIGERATED SHIPPING
SERVICE FROM THE US AND CANADA INTO MEXICO BEGINNING AUG 15 FOR SHIPPERS
WHO WANT TO MOVE LESS THAN A FULL TRUCKLOAD OF GOODS

SHIPPERS OF PERISHABLE GOODS HAVE BEEN FORCED TO EITHER FLY THEIR GOODS
INTO MEXICO OR PAY FOR A FULLTRUCKLOAD SHIPMENT SAID CHARLES G
ROBERTSON THE DALLAS COMPANY'S VICE PRESIDENT AND CHIEF OPERATING OFFICER

A PERISHABLE FULLTRUCKLOAD SHIPMENT WEIGHS ABOUT 45000 POUNDS

FROZEN FOOD EXPRESS SAID IT BEGAN FULLTRUCKLOAD REFRIGERATED SERVICE TO
AND FROM MEXICO FOUR YEARS AGO THAT BUSINESS HAS GROWN AT AN ANNUAL RATE OF
MORE THAN 30 IT SAID 9307130089 930713 BUSINESS BRIEFS

HARRIS CORP SIGNED AN AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO TO
SELL DIGITAL RADIOS INTERNATIONALLY TERMS WEREN'T DISCLOSED

MCDERMOTT INTERNATIONAL INC'S BABCOCK & WILCOX DIVISION WON A 40 MILLION
CONTRACT TO DESIGN AND BUILD TWO NUCLEAR PLANT STEAM GENERATORS FOR
ROCHESTER GAS & ELECTRIC CO

MOBIL CORP'S MOBIL OIL HONG KONG SUBSIDIARY WON A CONTRACT TO SUPPLY 27
MILLION BARRELS OF FUELS AND LUBRICANTS FOR A MAJOR CONSTRUCTION PROJECT AT
THE NEW HONG KONG AIRPORT

MCGRAWHILL INC ACQUIRED DISTRIBUIDORA CIENCIA Y TECNICA

MAXXIM MEDICAL INC COMPLETED ITS ACQUISITION OF THE STERILE DESIGN BUSINESS
FROM JOHNSON & JOHNSON MEDICAL INC A UNIT OF JOHNSON & JOHNSON FOR 25
MILLION

LCI INTERNATIONAL INC WAS AWARDED A THREEYEAR CONTRACT FOR 36 MILLION TO
SUPPLY TELECOMMUNICATIONS SERVICES TO CHIPSOFT INC 9307130088 930713
INTERNATIONAL WORLD WIRE  COMPILED BY RICHARD L HOLMAN

A TAIWAN LEGISLATIVE COMMITTEE APPROVED SPENDING 1378 BILLION FOR SIX
MAJOR TRANSPORTATION PROJECTS INCLUDING A HIGHSPEED RAIL SYSTEM THAT WILL
BE OPEN TO GLOBAL COMPETITION FOR CONTRACTS

THE PACKAGE THROUGH JUNE 30 1995 REQUIRES APPROVAL BY THE FULL
LEGISLATURE IT ALSO APPROPRIATES CASH FOR TAIPEI'S SUBWAY SYSTEM AND FOUR
HIGHWAYS

THE RAILROAD MAY BE THE LARGEST SINGLE CONTRACT 35 BILLION TOWARD A TOTAL
OF 17 BILLION FOR COMPLETION AROUND THE YEAR 2003 IN TAIWAN'S
SIXYEARDEVELOPMENT PLAN THE MAIN RAIL SUPPLY CONTRACT TO BE AWARDED BY
NEXT JUNE WILL BE FOR RAIL CARS ELECTRICAL AND SIGNALING SYSTEMS AND
MAINTENANCE FACILITIES OTHER JOBS INCLUDE THE TRACK SYSTEM AND GENERAL
CONTRACTING

MEANWHILE THE LEGISLATURE OPENED THE WAY FOR TAIWAN'S FOURTH NUCLEAR POWER
PLANT BY BLOCKING AN OPPOSITION EFFORT TO FREEZE THE PROJECT'S 58 BILLION
BUDGET THIS FREED THE BIDDING PROCESS FOR THE TECHNOLOGY AND CONTRACTING
WORK BOTH OF WHICH ARE EXPECTED TO GO TO FOREIGN SUPPLIERS

JAPAN'S UNEMPLOYMENT RATE WHICH THE LATEST GOVERNMENT REPORT PUT AT 25
EXCEEDS 6 UNDER AN UNCONVENTIONAL MEASURE BY A RESEARCH INSTITUTE ATTACHED
TO A JAPANESE INSURANCE COMPANY THE GOVERNMENT'S JOBLESS TALLY IN MAY
TOTALED 152 MILLION BUT SUMITOMOLIFE RESEARCH INSTITUTE INC SAID IT
ADDED PEOPLE WHO HAVE DONOTHING JOBS AMID JAPAN'S ECONOMIC SLUMP THE
UNDEREMPLOYED TOTALED 246 MILLION IN THE QUARTER ENDED MARCH 31 SUMITOMO
SAID CALCULATING AN OVERALL EFFECTIVE JOBLESS RATE OF 603

EUROPEAN COMMUNITY FINANCE MINISTERS INTENSIFIED PRESSURE FOR TOUGH MEASURES
TO CURB MEMBER COUNTRIES' BUDGET DEFICITS OTHERWISE EC CENTRAL BANKERS
WARNED AN UNPRECEDENTED DETERIORATION IN GOVERNMENT FINANCES RISKS
UNDERMINING PLANS FOR EC MONETARY UNION IN THEIR TWICEYEARLY TALKS ON THE
EC'S ECONOMIC OUTLOOK THE BANK GOVERNORS PREDICTED THE TRADE BLOC'S
PUBLICSECTOR DEFICITS THIS YEAR WOULD INCREASE TO A RECORD OF MORE THAN 6
OF ITS TOTAL GROSS DOMESTIC PRODUCT

FARMERS DESTROYED A US SEED COMPANY'S OFFICE IN SOUTHERN INDIA THE
KARNATAKA STATE FARMERS ASSOCIATION CLAIMED RESPONSIBILITY FOR THE ASSAULT
ON CARGILL INC'S PLANNED PROCESSING AND RESEARCH COMPLEX IN SIRAVARA THE
GROUP WHICH RANSACKED A CARGILL OFFICE IN BANGALORE IN DECEMBER IS
CAMPAIGNING AGAINST MULTINATIONAL AGRICULTURE FIRMS TO PROTEST GLOBAL
TARIFFS AND PATENT LAWS FORCING ROYALTY PAYMENTS FOR HYBRID SEEDS THE DRIVE
COMES AS INDIA SEEKS TO OPEN ITS ECONOMY TO MORE FOREIGN COMPANIES CARGILL
SAID IT WOULD PROCEED WITH ITS KARNATAKA PROJECT

A PRICE WAR ERUPTED AMONG BRITAIN'S TABLOID NEWSPAPERS IN A TACTIC TO LURE
NEW READERS AND HOPE THEY SWITCH LOYALTIES THE SUN THE BIGGESTSELLING
DAILY WITH AVERAGE SALES OF 349 MILLION COPIES LAUNCHED THE SKIRMISH
CUTTING ITS PRICE TO 20 PENCE 30 US CENTS FROM 25 PENCE THE DAILY
MIRROR WITH DAILY CIRCULATION OF 265 MILLION SLASHED ITS PRICE TO 10
PENCE FROM 27 PENCE SALES BOOMED 8 AT THE SUN AND 19 AT THE MIRROR BUT
THE STRATEGY IS DICEY AS A TABLOID'S COVER PRICE TYPICALLY PRODUCES 55 OF
OVERALL REVENUE

AUSTRALIAN BEEF EXPORTS TO SOUTH KOREA ARE LIKELY TO INCREASE UNDER A NEW
AGREEMENT THE PACT LIFTS BARRIERS TO AUSTRALIAN GRASSFED BEEF ON KOREA'S
WHOLESALE MARKET IMPROVING PRODUCERS' OPPORTUNITIES TO COMPETE WITH US
GRAINFED BEEF AND OTHER NATIONS' SHIPMENTS IT ALSO ALLOWS AUSTRALIANS INTO
EXPANDING AND HIGHERVALUE PARTS OF KOREA'S MARKET SUCH AS RESTAURANTS AND
SUPERMARKETS KOREA IS AUSTRALIA'S THIRDBIGGEST BEEF MARKET WITH EXPORTS
LAST YEAR OF 68000 METRIC TONS VALUED AT 1683 MILLION

CHINA WILL REINTRODUCE AGRICULTURAL SUBSIDIES IN AN EFFORT TO APPEASE
FARMERS AND REVITALIZE THEIR PRODUCTION WHICH STAGNATED AT JUST 37 GROWTH
LAST YEAR AS INDUSTRIAL OUTPUT SOARED 20

A NEW TAXSUPPORTED SPECIAL FUND TO BUTTRESS THE GOVERNMENT'S PURCHASE PRICE
FOR CROPS WILL PROVIDE SUBSIDIES DURING CALAMITIES SUCH AS A FLOOD OR
DROUGHT OR WHEN MARKET PRICES ARE TOO LOW TO ALLOW FARMERS A PROFIT

FARMERS WHOSE LIVING STANDARD TRAILED THAT OF CITY DWELLERS UNDER ECONOMIC
REFORMS RIOTED IN MANY PARTS OF CHINA WHEN BANKS HANDED OUT IOUS TO PAY FOR
CROPS ATTACKED POST OFFICES UNABLE TO CASH POSTAL ORDERS FROM URBAN
RELATIVES AND REBELLED AGAINST HEAVY TAXES IMPOSED BY LOCAL AUTHORITIES
BEIJING LAST MONTH OUTLAWED 16 SUCH TAXES

CHINA'S CENTRAL BANK INTERVENED IN FOREIGNEXCHANGE OR SWAP MARKETS AFTER
A DOLLARBUYING BINGE BY EXPORTERS ERODED THE YUAN IN SHANGHAI THE BANK
SOLD 37 MILLION THE BIGGEST INTERVENTION IN MEMORY BRINGING THE YUAN TO
THE TARGET OF 850 TO THE DOLLAR UP 84 FROM SATURDAY

ISRAEL AND VIETNAM ESTABLISHED DIPLOMATIC TIES WHICH MAY LEAD TO INCREASED
TRADE ESPECIALLY IN THE AGRICULTURE AND HEALTH INDUSTRIES BUT ISRAEL'S
EMBASSIES WERE SHUT WORLDWIDE AS DIPLOMATIC EMPLOYEES JOINED A STRIKE BY
GOVERNMENT WORKERS OVER WAGES  THE PHILIPPINES' POPULATION MAY DOUBLE
TO 130 MILLION IN 25 YEARS UNLESS THE GOVERNMENT CAN CURB GROWTH OFFICIALS
SAID ABOUT HALF THE POPULATION NOW IS YOUNGER THAN 16 9307130087 930713
BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH MAJOR ENHANCEMENT' IS
SET FOR ANNOUNCEMENT TODAY

STUNG BY RIVAL CONSUMER LONGDISTANCE PROGRAMS THAT HAVE LURED MILLIONS OF
NEW CUSTOMERS AMERICAN TELEPHONE & TELEGRAPH CO IS PLANNING A MAJOR
ENHANCEMENT TO ITS OWN SERVICE CALLED THE I PLAN

THE ENHANCEMENT WHICH AT&T IS EXPECTED TO ANNOUNCE THIS MORNING IN NEW
YORK WILL TRY TO DEFINE AT&T'S SERVICE AS THE INDUSTRY'S HIGHTECH
INNOVATOR RATHER THAN JUST ANOTHER PRICE CUT ACCORDING TO PEOPLE FAMILIAR
WITH AT&T'S PLANS

FOR EXAMPLE AT&T ALREADY OFFERS THE EASYREACH 700 PHONE NUMBER WHICH A
CUSTOMER CAN CARRY FOR LIFE AND BE CONTACTED ANYWHERE VIA THE AT&T NETWORK
A SPOKESMAN DECLINED TO COMMENT

AT&T'S PLAN NEEDS A MARKETING BOOST WHILE INDUSTRY ANALYSTS PONDER WHETHER
THE I PLAN'S I STANDS FOR INSCRUTABLE MCI COMMUNICATIONS CORP CONTINUES
TO CHIP AWAY AT AT&T'S CONSUMER MARKET SHARE WITH ITS OWN PROGRAMS AND
SPRINT CORP HAS BEEN OFFERING REGULAR ENHANCEMENTS TO ITS PROGRAM
9307130086 930713 BUSINESS BRIEF VOIT CORP AGREEMENT FOR
ACQUISITION BY MALAYSIAN FIRM'S UNIT SET

VOIT CORP SAID IT AGREED TO BE ACQUIRED BY A UNIT OF USAHA TEGAS A
MALAYSIAN INVESTMENT FIRM FOR 450 A SHARE OR ABOUT 15 MILLION

VOIT'S STOCK JUMPED 14375 OR 50 TO CLOSE AT 43125 IN NATIONAL
OVERTHECOUNTER TRADING

VOIT ACQUISITION CORP THE UNIT SET UP BY USAHA TEGAS FOR THE TRANSACTION
WILL BEGIN A TENDER OFFER FOR THE 35 MILLION SHARES OUTSTANDING BY FRIDAY
VOIT ACQUISITION AND USAHA TEGAS SAID THEY ALREADY REACHED AN AGREEMENT WITH
VOIT'S PRINCIPAL SHAREHOLDERS TO BUY THEIR SHARES WARRANTS AND UNDER
CERTAIN CIRCUMSTANCES SHARES ACQUIRED THROUGH OPTIONS

A SPOKESMAN SAID THE COMPANY EXPECTS TO COMPLETE THE TRANSACTION WITHIN SIX
WEEKS WHEN ASKED WHY VOIT OPTED TO SELL HE SAID IT'S THE RIGHT OFFER AT
THE RIGHT TIME VOIT'S FOUNDER AND PRESIDENT DAVID H GOLDMAN DIED JUNE
27 VOIT IS A FAIRPORT NY SPORTING GOODS MAKER AND DISTRIBUTOR
9307130085 930713 WHAT'S NEWS  BUSINESS AND FINANCE

QVC NETWORK ANNOUNCED PLANS TO MERGE WITH ITS ARCHRIVAL HOME SHOPPING
NETWORK IN A STOCK SWAP VALUED AT AS MUCH AS 14 BILLION THE MERGER WOULD
CREATE AN ELECTRONIC RETAILING GIANT THAT COULD START A FIFTH BROADCASTING
NETWORK WITHIN MONTHS HOME SHOPPING NETWORK'S SHARE PRICE ROSE 1 OR 79
TO 13625

MERCK HAS HELD TALKS ABOUT ACQUIRING MEDCO CONTAINMENT SERVICES A
FASTGROWING MAILORDER DRUG DISTRIBUTOR PEOPLE CLOSE TO THE DRUG COMPANY
AND MEDCO SAID BUT THERE WOULD BE MANY OBSTACLES TO SUCH A TRANSACTION
WHICH WOULD BE VALUED AT MORE THAN 45 BILLION ANALYSTS SAID

TWA IS EXPECTED TO NAME WILLIAM HOWARD FORMER CHAIRMAN OF PIEDMONT
AVIATION TO LEAD TWA AFTER ITS PLANNED EMERGENCE FROM BANKRUPTCYLAW
PROTECTION THIS SUMMER THE APPOINTMENT WOULD BE A VICTORY FOR THE AIRLINE'S
CREDITORS AND UNIONS WHICH PUSHED FOR AN EXPERIENCED OUTSIDER

INTEL'S PROFIT NEARLY TRIPLED IN THE LATEST QUARTER REFLECTING STRONG
DEMAND FOR ITS FLAGSHIP COMPUTER CHIP SEVERAL PERSONAL COMPUTER MAKERS'
STOCKS ROSE AFTER INTEL PROJECTED STRONG PC DEMAND IN THE US AND JAPAN

MOTOROLA'S EARNINGS JUMPED 57 IN THE SECOND QUARTER AS WORLD DEMAND
CONTINUED TO BUILD FOR ITS SEMICONDUCTORS CELLULAR PHONES AND PAGERS

AGRICULTURE OFFICIALS CUT THE CORNHARVEST FORECAST 76 AS FLOOD DAMAGE IN
THE FARM BELT CONTINUED TO MOUNT THE SOYBEAN FORECAST WAS CUT 34

APPLE SLASHED US PRICES BY AS MUCH AS ONETHIRD ON MANY OF ITS MOST
POPULAR PERSONAL COMPUTERS

A LOCKHEED F22 FIGHTER JET'S COST WOULD SOAR NEARLY 50 TO 130 MILLION
UNDER POSSIBLE CUTS IN THE NUMBER OF JETS THE PENTAGON PLANS TO BUY

PRESSURE IS GROWING TO GREATLY LIMIT THE PROPOSED ENERGY TAX IN THE PENDING
DEFICITREDUCTION BILL AS RANKANDFILE DEMOCRATS RETURN TO THE CAPITOL FROM
A WEEKLONG RECESS MANY LAWMAKERS FACED COMPLAINTS ABOUT THE BILL FROM
HOMEDISTRICT VOTERS

JAPAN PLANS TO FORMALLY WARN THE US THAT IT MAY WITHDRAW FROM NEGOTIATIONS
OVER SPECIFIC TRADE ISSUES IF THE US MOVES TO IMPOSE TRADE SANCTIONS ON
JAPAN AS PART OF THOSE TALKS

IBM IS EXPECTED TO UNVEIL TODAY PLANS TO PUSH INTO THE GROWING MARKET FOR
MULTIMEDIA NETWORK GEAR

ANDREA ELECTRONICS' STOCK SOARED 9625 OR 33 TO 3850 AFTER IT ISSUED
DETAILS OF ITS PLANS TO SELL PAY PHONE NOISE REDUCTION DEVICES BUT ANDREA
DIDN'T SAY IT HAS A FIRM CUSTOMER

FRANKFURT SHARE PRICES RALLIED 12 TO THE HIGHEST LEVEL IN THREE YEARS ON
PROSPECTS FOR REDUCED GERMAN INTEREST RATES AND ON HEAVY FOREIGN BUYING

BARNETT BANKS POSTED A RECORD 1042 MILLION PROFIT FOR THE LATEST QUARTER
CITING CONTINUED IMPROVEMENT IN CREDIT QUALITY AND EXPENSE CONTROL

GROUPE CASINO SAID IT MIGHT SELL ITS 503 STAKE IN SMART & FINAL A
WHOLESALE GROCER THE FRENCH FOOD DISTRIBUTOR'S STAKE IN SMART IS VALUED AT
1779 MILLION IN THE OPEN MARKET SMART'S STOCK ROSE 1 OR 62 TO
1725

BONDS LEHMAN BROTHERS TREASURY INDEX 532239 UP 1168

COMMODITIES OIL 1810 A BARREL UP 21 CENTS DOW JONES FUTURES INDEX
12623 OFF 037 SPOT INDEX 12338 OFF 049

DOLLAR 10940 YEN OFF 055 17305 MARKS UP 00080 9307130084 930713
INTERNATIONAL JAPAN PLANS TO FORMALLY WARN THE US ON ANY MOVES TO
IMPOSE CURBS ON TRADE  BY BOB DAVIS STAFF REPORTER OF THE WALL
STREET JOURNAL

WASHINGTON JAPAN PLANS TO FORMALLY WARN THE US THAT IT MAY WITHDRAW
FROM NEGOTIATIONS OVER SPECIFIC TRADE ISSUES IF THE US MOVES TO IMPOSE
TRADE SANCTIONS ON JAPAN AS PART OF THOSE DISCUSSIONS

THE JAPANESE WARNING CONTAINED IN A LETTER DRAFTED BY JAPAN'S AMBASSADOR TO
THE US UNDERSCORES THE FRAGILITY OF THE TRADE AGREEMENT HAMMERED OUT LAST
WEEK IN TOKYO THE TWO SIDES AGREED THAT DURING THE NEXT YEAR THEY WOULD
NEGOTIATE ON A VARIETY OF MEASURES TO INCREASE US ACCESS TO THE JAPANESE
MARKET THE LETTER FROM AMBASSADOR TAKAKAZU KURIYAMA TO US TRADE
REPRESENTATIVE MICKEY KANTOR WILL BE PUBLICLY RELEASED LATER THIS WEEK

SEPARATELY JAPANESE OFFICIALS ON MONDAY OPENLY DISMISSED THE SIGNIFICANCE
OF THE AGREEMENT IN HIS FIRST PUBLIC NEWS CONFERENCE JIRO SAITO THE NEWLY
APPOINTED VICE MINISTER OF THE FINANCE MINISTRY SAID THE ACCORD DOESN'T
COMMIT JAPAN TO TAKING ANY SHORTTERM STEPS TO REVIVE ITS SLUGGISH ECONOMY
THE PACT DOESN'T HAVE CLEAR MEANING HE SAID

BOTH SIDES FACE DOMESTIC PRESSURES THAT CAN DERAIL THE TALKS IN JAPAN
BUREAUCRATS AT THE FINANCE MINISTRY AND THE MINISTRY OF INTERNATIONAL TRADE
AND INDUSTRY ARE TUSSLING OVER WHICH AGENCY SHOULD TAKE THE LEAD IN
DIFFERENT PARTS OF THE NEGOTIATIONS IN ADDITION THE RULING LIBERAL
DEMOCRATIC PARTY WHICH IS IN A HEATED POLITICAL CAMPAIGN WANTS TO MAKE A
PUBLIC SHOWING THAT IT ISN'T BOWING TO US PRESSURE

MEANWHILE THE CLINTON ADMINISTRATION MUST REASSURE CONGRESS THAT IT WILL
ACT TOUGH WITH JAPAN IF THE NEGOTIATIONS DON'T IMPROVE THE US TRADE
POSITION AS A RESULT MR KANTOR IN A LETTER RESPONDING TO MR KURIYAMA
REITERATED THAT THE US RESERVES THE RIGHT TO APPLY ALL NATIONAL LAWS
WHICH WOULD INCLUDE THE IMPOSITION OF TRADE SANCTIONS IN RESPONSE TO UNFAIR
TRADING PRACTICES THE US OFTEN THREATENS TRADE SANCTIONS AGAINST JAPAN
BUT RARELY FOLLOWS THROUGH

THE KURIYAMA LETTER ITSELF WAS THE SUBJECT OF NEGOTIATIONS IN TOKYO LATE
LAST WEEK AT FIRST US NEGOTIATORS SAID THE JAPANESE PLANNED TO DECLARE
THAT THEY WOULD PULL OUT ENTIRELY FROM THE NEGOTIATIONS IF THE US STARTED
PROCEEDINGS TO IMPOSE TRADE SANCTIONS

BUT AFTER FURTHER TALKS THE JAPANESE AGREED TO LIMIT THEIR WARNING TO SAY
THEY MAY WITHDRAW ONLY FROM THOSE SECTORS IN WHICH THE US STARTED SANCTION
PROCEEDINGS IF SANCTIONS WERE ACTUALLY IMPOSED ON JAPANESE PRODUCTS THE
LETTER SAID JAPAN MAY ALSO WITHDRAW ANY CONCESSIONS THEY HAVE MADE DURING
THE NEGOTIATIONS OVER THE SECTOR IN QUESTION EVEN IF THE JAPANESE WITHDREW
FROM SOME OF THE TALKS HOWEVER THE REST OF THE NEGOTIATIONS COULD STILL
CONTINUE

THE AGREEMENT REACHED LAST WEEK SETS UP A FRAMEWORK OR AGENDA FOR
FURTHER NEGOTIATIONS THE AREAS TO BE COVERED ARE GOVERNMENT PROCUREMENT
REGULATORY REFORM SPECIFIC INDUSTRIES SUCH AS AUTOMOBILES AND AUTO PARTS
FOREIGN INVESTMENT AND ENFORCEMENT OF EXISTING TRADE AGREEMENTS THE TWO
SIDES AGREED TO TRY TO STRIKE A DEAL WITHIN SIX MONTHS ON GOVERNMENT
PROCUREMENT AND ISSUES INVOLVING THE INSURANCE AND AUTOMOTIVE INDUSTRIES
OTHER AREAS WOULD HAVE A ONEYEAR DEADLINE

DURING THAT TIME US NEGOTIATORS EXPECT TO OBTAIN JAPANESE AGREEMENT ON
SPECIFIC INDICATORS TO MEASURE THE FOREIGN PRESENCE IN JAPANESE MARKETS IN
ADDITION THEY WANT JAPAN TO IMPROVE ITS IMPORT LEVELS SO THEY MORE
APPROXIMATE EUROPE AND OTHER MARKETS JAPANESE IMPORTS OF MANUFACTURED
GOODS MEASURED AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT ARE ABOUT 50
THAT OF THE US OR EUROPE

MR KANTOR THE US TRADE REPRESENTATIVE SAID THE US WANTS JAPANESE
AGREEMENT ON MEASURABLE TARGETS FOR SUCCESS IN OTHER WORDS GOALS THAT
JAPAN WOULD HAVE TO MEET BUT JAPANESE NEGOTIATORS HAVE SAID THEY WILL
RESIST FORMAL GOALS

JAPANESE BUSINESSES WORRY ABOUT GETTING CAUGHT IN A CROSSFIRE SHOULD THE
TRADE TALKS TURN COMBATIVE IF JAPAN'S TRADE SURPLUS DECLINES SMOOTHLY AND
IF MARKET ACCESS IS REALIZED THERE WILL BE NO PROBLEM WITH THE AGREEMENT
SAID KENICHIRO YOKOO AN OFFICIAL AT KEIDANREN JAPAN'S LEADING BUSINESS
FEDERATION BUT IF THINGS TURN OUT TO BE MOVING AGAINST US WISHES IT
MIGHT BE A SOURCE OF PROBLEMS

MASAYOSHI KANABAYASHI IN TOKYO CONTRIBUTED TO THIS ARTICLE 9307130083
930713 MERCK WEIGHS BUYING MEDCO CONTAINMENT  TALKS ON PURCHASE
ARE SAID TO HAVE TAKEN PLACE BUT DIFFICULTIES EXIST  BY ELYSE
TANOUYE AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL

MERCK & CO HAS HELD TALKS ABOUT ACQUIRING MEDCO CONTAINMENT SERVICES INC
PEOPLE CLOSE TO THE COMPANIES SAID BUT THERE WOULD BE MANY DIFFICULTIES
WITH SUCH A TRANSACTION WHICH WOULD BE VALUED AT MORE THAN 45 BILLION
ACCORDING TO ANALYSTS AND COMPETITORS

NEITHER MERCK NOR MEDCO WOULD COMMENT OFFICIALLY OVER THE PAST FEW MONTHS
THE TWO COMPANIES HAVE DEVELOPED MUCH CLOSER BUSINESS DEALINGS BUT IT IS
UNCLEAR WHETHER THE ACQUISITION TALKS WILL GO FORWARD THERE ARE SIGNS OF
DISAGREEMENT WITHIN MERCK ABOUT WHETHER THE COMPANIES OUGHT TO BE COMBINED
MERCK IS THE LARGEST US PHARMACEUTICAL COMPANY MEDCO IS A MAJOR MERCK
CUSTOMER AND A FASTGROWING POWERHOUSE IN MAILORDER DRUG DISTRIBUTION

THE SUDDEN RESIGNATION OF MERCK PRESIDENT RICHARD MARKHAM FRIDAY IS SAID TO
HAVE BEEN PROMPTED IN PART BY OPPOSITION BY SENIOR MERCK MANAGERS TO SOME OF
HIS AGGRESSIVE ATTEMPTS TO STEP UP MERCK'S ACTIVITIES IN THE MANAGEDCARE
MARKET WHICH INCLUDES HEALTH MAINTENANCE ORGANIZATIONS AND OTHER
INSTITUTIONAL BUYERS OF HEALTHCARE SERVICES AND PRODUCTS MR MARKHAM WAS
BELIEVED TO HAVE BEEN AN ADVOCATE OF ACQUIRING MEDCO

SEPARATELY THE PACIFIC STOCK EXCHANGE SAID IT HAS BEEN INVESTIGATING MEDCO
CONTAINMENT OPTIONS TRADING

ON WALL STREET ANALYSTS VIEWED THE POTENTIAL COMBINATION AS INTRIGUING BUT
HARDLY A SURE THING THERE'S NO QUESTION THAT THESE TWO COMPANIES ARE
GETTING CLOSER TOGETHER AND ARE HAVING MORE AREAS OF MUTUAL INTEREST SAID
RICHARD VIETOR AN ANALYST AT MERRILL LYNCH & CO BUT I DOUBT IF IT GOES
FURTHER THAN THAT

IF THE TWO COMPANIES ARE COMBINED ANALYSTS SAID IT COULD HURT MEDCO'S
ABILITY TO BUY PHARMACEUTICALS ON FAVORABLE TERMS FROM COMPANIES OTHER THAN
MERCK MERCK'S OWN SALES EFFORTS WITH MEDCO'S COMPETITORS COULD ALSO BE
JEOPARDIZED AND MEDCO'S OWN CLIENTS GENERALLY BIG CORPORATE HEALTH PLANS
MIGHT WONDER IF THEY WERE GETTING THE BEST ACROSSTHEBOARD RANGE OF DRUGS
FOR THEIR MEMBERS

USUALLY IT'S BEST NOT TO BUY YOUR CUSTOMERS SAID KEN ABRAMOWITZ AN
ANALYST AT SANFORD C BERNSTEIN & CO MR ABRAMOWITZ EXPRESSED DOUBT THAT A
MERCKMEDCO TRANSACTION CAN BE COMPLETED NOTING THAT HOSPITAL CHAINS HAVE
TRIED AND FAILED AT ATTEMPTS TO BUY SUPPLY COMPANIES OR SET UP THEIR OWN BIG
HEALTHMAINTENANCE ORGANIZATIONS IN HEALTH CARE THERE'S A POTENTIAL
CONFLICT OF INTEREST BETWEEN A MANUFACTURER AND A CUSTOMERSERVICE COMPANY
MR ABRAMOWITZ SAID

STILL EVEN BY FLIRTING WITH THE IDEA OF BUYING MEDCO MERCK IS SIGNALING A
MAJOR SWITCH IN HOW IT VIEWS THE PRICECUTTING AND BULKBUYING PRACTICES
THAT ARE AT THE HEART OF MANAGEDCARE COMPANIES LIKE MEDCO TRADITIONALLY
MERCK WHICH HAS A STRONG PRODUCT LINE HAS RESISTED DOING BUSINESS ON
MANAGEDCARE COMPANIES' TERMS BUT AS MANAGEDCARE COMPANIES KEEP INCREASING
THEIR MARKET SHARE MERCK APPEARS TO HAVE DECIDED TO MAKE PEACE WITH THEM

MEDCO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MARTIN WYGOD SAID MERCK IS
UNDERREPRESENTED IN THE COMPANY'S SALES MIX HE DIDN'T PROVIDE SPECIFIC
DATA BUT MERCK GENERALLY ACCOUNTS FOR ABOUT 10 OF ALL US PHARMACEUTICAL
SALES

MR WYGOD HAS SAID FOR SEVERAL MONTHS THAT HE WANTS TO FORM STRATEGIC
ALLIANCES WITH A FEW MAJOR DRUG COMPANIES AT A MIDMAY INVESTORS CONFERENCE
IN LA JOLLA CALIF MR WYGOD WENT FURTHER SAYING MEDCO NOW GETS 80 OF
ITS SALES FROM 25 DIFFERENT SUPPLIERS WITHIN FIVE YEARS HE SAID HE
EXPECTS 80 OF SALES TO COME FROM FIVE OR FEWER SUPPLIERS

IN A RECENT PRESENTATION TO SENIOR MANAGERS MR MARKHAM LAID OUT HIS
REASONING FOR PURSUING MEDCO AND OTHER MANAGEDCARE ENTITIES OR FAILING
THAT TO DEVELOP ITS OWN DISTRIBUTION CAPABILITY TO BYPASS INTERMEDIARIES
LIKE MEDCO SAID A PERSON CLOSE TO MERCK MR MARKHAM ALSO URGED MERCK TO
CUT ITS WORK FORCE BY AN ADDITIONAL 1500 PEOPLE AND USE THE COST SAVINGS
TO MORE AGGRESSIVELY MOVE INTO MANAGED CARE THROUGH ACQUISITIONS THE PERSON
SAID

THE FINAL STRAW CAME LAST WEEK WHEN KEY SUPPORTERS OF MR MARKHAM TOLD MERCK
CHAIRMAN P ROY VAGELOS IN A MEETING THAT THE NEW PRESIDENT WAS MOVING TOO
FAR TOO FAST AND WASN'T COMMUNICATING ENOUGH WITH SENIOR MANAGERS THE
PERSON SAID

A MERCK SPOKESMAN SAID MERCK EXECUTIVES AND SENIOR MANAGERS WOULDN'T COMMENT
ANY FURTHER ON MR MARKHAM'S DEPARTURE HE ALSO DECLINED TO COMMENT ON
BUSINESS DEVELOPMENT RUMORS

IN A CONFERENCE CALL WITH ANALYSTS YESTERDAY MERCK REITERATED THAT MR
MARKHAM LEFT MERCK AMICABLY AND THAT HIS REASONS WEREN'T RELATED TO MERCK'S
BUSINESS SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER BUT MERCK ALSO
SAID MR MARKHAM WON'T HAVE ANY CONTINUING TIES WITH THE COMPANY AND
INDICATED MR MARKHAM'S DEPARTURE WASN'T FOR HEALTH REASONS ANALYSTS SAID

MERCK SHARES FELL 25 CENTS APIECE TO 3450 IN NEW YORK STOCK EXCHANGE
COMPOSITE TRADING YESTERDAY

A SPOKESMAN FOR THE PACIFIC STOCK EXCHANGE DECLINED TO SAY WHAT PROMPTED ITS
INVESTIGATION WHICH HE SAID HAS BEEN UNDER WAY FOR A WHILE BUT A MARKET
MAKER SAID HE HAD NOTICED THAT THERE HAD BEEN HEAVY BUYING IN THE PAST MONTH
OF OCT 30 CALL OPTIONS IN MEDCO CONTAINMENT AND NOTIFIED THE EXCHANGE THE
ACTIVITY APPEARED TO BE COMING FROM ONE BUYER HE SAID AND SUCH A POSITION
OF 5000 TO 6000 CALL CONTRACTS WOULD YIELD AS MUCH AS 10 MILLION IN
PROFIT IF A BID FOR MEDCO MATERIALIZED HOLDING SUCH A POSITION WOULD HAVE
REQUIRED AT LEAST 1 MILLION HE SAID

MEDCO CONTAINMENT AND MERCK SAID THEY HADN'T BEEN NOTIFIED OF ANY
INVESTIGATION BY THE EXCHANGE 9307130082 930713 BUSINESS BRIEF LA
QUINTA INNS INC PARTNERSHIP INTERESTS BOUGHT FROM INSURANCE COMPANIES

LA QUINTA INNS INC SAID IT ACQUIRED PARTNERSHIP INTERESTS IN 30 PROPERTIES
FROM PRUDENTIAL INSURANCE CO OF AMERICA AND METROPOLITAN LIFE INSURANCE CO
TERMS OF THE TRANSACTIONS WEREN'T DISCLOSED

THE HOTEL AND RESTAURANT OWNER SAID IT FINANCED THE ACQUISITIONS USING A
PORTION OF THE PROCEEDS OF A 120 MILLION DEBT OFFERING IT COMPLETED IN THE
SECOND QUARTER

THE COMPANY ALSO SAID THAT IN THE FIRST HALF IT ACQUIRED FIVE ADDITIONAL
PROPERTIES FROM FIVE SELLERS WHICH IT DIDN'T IDENTIFY TERMS WEREN'T
DISCLOSED

MEANWHILE LA QUINTA SIGNED AN AGREEMENT WITH ITS LENDERS TO RENEW A 40
MILLION CREDIT LINE AND TO CREATE A NEW 30 MILLION SECURED TERM CREDIT
LINE

THE SAN ANTONIO COMPANY ALSO SAID IT PLANS TO TAKE A ONETIME
SECONDPERIOD NONCASH CHARGE OF 44 MILLION TO COVER GRANTS OF STOCK
OPTIONS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE LA
QUINTA CLOSED AT 3175 DOWN 50 CENTS 9307130081 930713 HEARD ON THE
STREET ZEBRA A BENEFICIARY OF MOMENTUM INVESTING' DISCOVERS THE BAD
SIDE AS RUMOR HURTS STOCK  BY WILLIAM POWER STAFF REPORTER OF THE
WALL STREET JOURNAL

NEW YORK MOMENTUM INVESTING IS ALL THE RAGE IN TODAY'S STOCK MARKET TO
UNDERSTAND THE THRILLS AND THE POTENTIAL SPILLS OF THIS INVESTMENT STYLE
LOOK AT THE NASDAQ HIGHFLIER ZEBRA TECHNOLOGIES

AS MARKET AVERAGES STAGNATE INDIVIDUAL STOCKS SUCH AS ZEBRA ARE BEING
PUMPED UP BY RAPIDFIRE BUYING FROM LARGE INVESTORS ON THE SLIGHTEST OF
POSITIVE EARNINGS NEWS OR TRASHED ON THE SLIGHTEST DISAPPOINTMENT ZEBRA
HAS ENJOYED THE FIRST PART OF THIS STOCKMARKET GAME NOW LIKE A LOT OF
OTHER SOARING STOCKS IT STANDS VULNERABLE TO THE UNFORTUNATE FLIP SIDE

ZEBRA BASED NEAR CHICAGO MAKES MACHINES TO PRINT THE BARCODE LABELS
SLAPPED ON EVERYTHING FROM BLOOD BAGS TO CIRCUIT BOARDS

YESTERDAY ALL IT TOOK WAS A RUMOR THAT ANALYST JAMES HICKEY OF WILLIAM
BLAIR & CO HAD EXPRESSED CONCERN ABOUT THE STOCK'S HIGH VALUATION IN A
MEETING WITH BROKERS AND ZEBRA SHARES SLUMPED 1 1/4 TO 40 1/4 ON THE
HIGHEST VOLUME IN NEARLY TWO MONTHS 229100 SHARES TRADERS WERE CONCERNED
BECAUSE BLAIR IS ONE OF ZEBRA'S INVESTMENT BANKERS BOTH BLAIR AND
MONTGOMERY SECURITIES ANOTHER OF ZEBRA'S BANKERS HAVE HELPED BOOST THE
STOCK WITH ENTHUSIASTIC BUY RECOMMENDATIONS

THE PRICE OF THE COMPANY'S CLASS A STOCK HAS DOUBLED SINCE A PUBLIC OFFERING
OF 26 MILLION SHARES BY COMPANY INSIDERS IN MARCH THE STOCK CLOSED AT MORE
THAN 35 TIMES REPORTED EARNINGS OR MORE THAN 31 TIMES THE CONSENSUS
ESTIMATE OF 128 A SHARE IN PROFIT THIS YEAR THAT GIVES THE COMPANY AN
EYEPOPPING STOCKMARKET VALUE OF 480 MILLION OR EIGHT TIMES LAST YEAR'S
SALES

ONE REASON FOR THE RALLY IS THAT THE COMPANY REPORTED FIRSTQUARTER
PERSHARE EARNINGS OF 30 CENTS IN APRIL FOUR CENTS BETTER THAN WALL
STREET'S OFFICIAL EXPECTATION INVESTORS LOVED IT

BLAIR'S MR HICKEY IN AN INTERVIEW DENIES HE HAS BACKED AWAY FROM THE
STOCK I WAS ASKED A QUESTION ABOUT THE STOCK'S PRICE AND I SAID THE
STOCK HAS COME PRETTY FAR PRETTY FAST BUT THE TONE OF THE COMMENT WAS
PRINCIPALLY THAT THE BUSINESS MOMENTUM IS EXCELLENT AND THAT EARNINGS COULD
EXCEED EXPECTATIONS HE SAYS

STILL THE STOCK'S QUICK MOVE SHOWS WHAT COULD HAPPEN IF THERE'S A REAL
DISAPPOINTMENT DOWN THE ROAD

I CANNOT JUSTIFY PAYING 30 TIMES EARNINGS FOR ZEBRA DESPITE ITS SOLID
RECORD SAYS TIMOTHY SUMMERS WHO FOLLOWS THE STOCK FOR HOUSEHOLD
INTERNATIONAL'S HAMILTON INVESTMENTS IN CHICAGO AND RECENTLY PULLED HIS
SHORTTERM BUY RECOMMENDATION I'M CONCERNED WHEN A STOCK OBVIOUSLY
REFLECTS ALL THE GOOD NEWS ALL ZEBRA HAS TO DO IS MEET EARNINGS
EXPECTATIONS SOME QUARTER RATHER THAN OUTDO THEM AND THE STOCK COULD FALL
HE SAYS

MUCH BIGGER COMPANIES HAVE SUFFERED THAT FATE FOR EXAMPLE INTEL'S STOCK
TUMBLED YESTERDAY AFTER THE SEMICONDUCTOR MAKER'S PROFIT ONLY MATCHED AND
DIDN'T BEAT STREET FORECASTS

MOMENTUM INVESTORS LOVE ACCELERATING EARNINGS THUS GROWTH COMPANIES ARE
UNDER PRESSURE TO KEEP SURPRISING THE STREET WITH BETTERTHANEXPECTED
RESULTS

FRIENDLY UNDERWRITERS CAN HELP BLAIR'S MR HICKEY ESTIMATES ZEBRA WILL
REPORT 32 CENTS FOR THE QUARTER ENDED JULY 3 BUT HE TOLD THE FIRM'S BROKERS
YESTERDAY THAT IT'LL PROBABLY COME IN HIGHER THAN THAT MONTGOMERY'S MICHAEL
GORDON IS ON RECORD WITH AN IDENTICAL 32CENT ESTIMATE BUT HE TOO FEELS
IT'S TOO LOW IF SO IT'LL BE ANOTHER BETTERTHANEXPECTED QUARTER AND
ZEBRA'S STOCK PRICE WILL ROLL ON

ZEBRA'S CHIEF FINANCIAL OFFICER CHARLES R WHITCHURCH SAYS ANALYSTS ARE
VERY SAFE IN ESTIMATING 32 CENTS A SHARE UP FROM 26 CENTS A YEAR BEFORE
ASKED IF ZEBRA CAN MATCH ITS FULLYEAR 1992 SALES OF 587 MILLION HE
WASN'T SO SPECIFIC WE'RE VERY EXCITED ABOUT THE PROSPECTS OF THE COMPANY
I WILL NOT PUT A NUMBER ON IT

PROFESSIONAL SHORTSELLERS WHO MAKE MONEY WHEN STOCKS GO DOWN ARE HOVERING
THE AMOUNT OF ZEBRA STOCK SOLD SHORT BETTING ON A PRICE DECLINE 
QUINTUPLED TO 443453 SHARES IN THE MONTH THROUGH THE MIDDLE OF JUNE

BEARS SAY THERE'S SUPPORT FOR THEIR VIEW AN INDEPENDENT ELECTRONICS
CONSULTING FIRM RECENTLY PUBLISHED AN INCHTHICK REPORT ON THE BARCODE
INDUSTRY VENTURE DEVELOPMENT CORP RUN BY HARVARD AND MASSACHUSETTS
INSTITUTE OF TECHNOLOGY GRADS OUT OF NATICK MASS POINTS OUT THAT ZEBRA
DOMINATES THE THERMAL TRANSFER SECTOR OF THE BARCODE BUSINESS BUT THE
NARROWLY FOCUSED COMPANY COULD BE OVERRUN BY GROWING ALTERNATIVES SUCH AS
LASER AND INKJET PRINTERS THE RESULT ZEBRA COULD WIND UP AS THE KING OF A
LOWPROFITMARGIN ANTIQUATED BUSINESS

THEY'VE DONE EVERYTHING WELL BUT THE CONTOURS OF THE MARKET ARE SHIFTING
SAYS BARTHOLOMEW MALLIO A COAUTHOR OF THE REPORT THEY'RE A LONG WAY FROM
BEING OUT OF THE RUNNING BUT THE TRACK IS SORT OF CHANGING AROUND THEM

YEAR ENDED DEC 31 1992

FIRST QUARTER APRIL 3 1992 9307130080 930713 BUSINESS BRIEF CENTRAL
& SOUTH WEST CORP SUBSIDIARY EXTENDS DEADLINE ON BONDAUCTION
INVITATION

CENTRAL & SOUTH WEST CORP DALLAS SAID ONE OF ITS OPERATING SUBSIDIARIES
EXTENDED UNTIL TOMORROW ITS INVITATION TO HOLDERS OF TWO ISSUES OF ITS BONDS
TO SUBMIT OFFERS TO SELL THEIR BONDS IN A MODIFIED DUTCH AUCTION

THE UNIT CENTRAL POWER & LIGHT CO SAID THE INVITATION WHICH HAD BEEN SET
TO EXPIRE YESTERDAY AT 5 PM EDT WILL NOW RUN THROUGH TOMORROW AT 5 PM

THE MAXIMUM PRICE FOR THE UTILITY'S 1392 MILLION OF 10 1/8 POLLUTION
CONTROL REVENUE BONDS SERIES 1984 DUE OCT 15 2014 WAS ESTABLISHED AT
118375 PER 100 PRINCIPAL AMOUNT FOR THE COMPANY'S 817 MILLION
OUTSTANDING OF 9 3/4 COLLATERALIZED POLLUTION CONTROL REVENUE BONDS SERIES
1985A DUE JULY 1 2015 A MAXIMUM PRICE WAS SET AT 116750 PER 100
PRINCIPAL AMOUNT BOTH WERE ISSUED BY MATAGORDA COUNTY NAVIGATION DISTRICT
NO 1 TEXAS

IN DUTCH AUCTIONS THE HOLDERS SET A PRICE RANGE AT WHICH THEY AGREE TO SELL
THEIR BONDS 9307130079 930713 BUSINESS BRIEF SANIFILL INC CHARGE
OF FOUR CENTS A SHARE IS PLANNED FOR SECOND PERIOD

SANIFILL INC SAID IT WILL TAKE A FOURCENTSASHARE CHARGE AGAINST
SECONDQUARTER EARNINGS FOR SETTLEMENT OF A LAWSUIT

THE ENVIRONMENTAL SERVICES CONCERN IN HOUSTON SAID THAT IT WAS SUED IN
DECEMBER 1991 BY INVESTORS WHO CLAIMED THAT SANIFILL MISLED THEM ABOUT THE
FINANCIAL CONDITION OF THE COMPANY

SANIFILL SAID THE SUIT IS WITHOUT MERIT BUT IT DECIDED TO SETTLE TO
BRING TO AN END THE DRAIN ON MANAGEMENT TIME AND THE DEFENSE COSTS

WITHOUT THE CHARGE SANIFILL SAID IT WOULD HAVE EXPECTED TO REPORT EARNINGS
OF 20 CENTS TO 21 CENTS A SHARE FOR THE QUARTER THE COMPANY SAID IT NOW
EXPECTS TO REPORT EARNINGS OF 16 CENTS TO 17 CENTS A SHARE FOR THE 1992
SECOND QUARTER SANIFILL REPORTED EARNINGS OF 2 MILLION OR 15 CENTS A
SHARE ON REVENUE OF 198 MILLION THIS YEAR'S SECONDQUARTER RESULTS WILL
BE RELEASED NEXT WEEK

THE COMPANY SAID THE SETTLEMENT IS SUBJECT TO COURT REVIEW 9307130078
930713 LEISURE & ARTS BOOKSHELF MAN PAST AND PRESENT  BY LEE
LESCAZE

GEORGE CARTWRIGHT IS A MAN OF THE AGE OF ADVENTURE HORIZONS ARE BOUNDLESS
ANYTHING SEEMS POSSIBLE RICHARD KRAFT COMES FROM A BENIGHTED AGE OF
MILLENNIAL FEAR AND TREMBLING IN WHICH HORIZONS HAVE CONTRACTED ALMOST TO
THE VANISHING POINT

THE NOVELS ABOUT THESE MEN MARK OPPOSITE ENDS OF 200 YEARS OF EXPERIENCE
JOHN STEFFLER'S THE AFTERLIFE OF GEORGE CARTWRIGHT HOLT 296 PAGES
2250 TELLS OF AN INDOMITABLE HALFHEROIC HALFCRUEL MAN'S STRUGGLE TO
MAKE A LIFE AND A FORTUNE IN 18THCENTURY NEWFOUNDLAND RICHARD POWERS'S
OPERATION WANDERING SOUL MORROW 352 PAGES 23 IS A CORROSIVE REPORT
FROM A LOS ANGELES OF THE NEARFUTURE MADE CLOSE TO UNLIVABLE BY VIOLENCE
POLLUTION TRAFFIC AND MAN'S INHUMANITY IT CENTERS ON KRAFT A BRILLIANT
SURGEON BROUGHT CLOSE TO MENTAL COLLAPSE AND EMOTIONAL PARALYSIS BY THE
HORRORS OF THE MODERN WORLD PARTICULARLY EVILS INFLICTED ON CHILDREN

MR STEFFLER BASED HIS NOVEL ON THE LIFE OF A REAL GEORGE CARTWRIGHT A
RESTLESS DARING UNINTELLECTUAL ENGLISHMAN MORE AT HOME IN THE WILD THAN IN
SOCIETY MR STEFFLER A POET WHO LIVES IN NEWFOUNDLAND WRITES LUCID
GRACEFUL PROSE AND HAS MADE A COMPELLING COMPLEX STORY FROM CARTWRIGHT'S
LIFE

AFTER A MEDIOCRE MILITARY CAREER IN INDIA AND EUROPE CARTWRIGHT IS REVIVED
BY NEWFOUNDLAND THE COLD THE WILDERNESS THE ABUNDANT ANIMALS AND THE
MYSTERIOUS INUIT PEOPLE DELIGHT AND CHALLENGE HIM AT THE HEAD OF A
SETTLEMENT OF 22 WHERE EUROPEANS HAVE NEVER LIVED BEFORE CARTWRIGHT
REALIZES HIS DREAMS OF LEADERSHIP AND SETS ABOUT ATTEMPTING TO BUILD A
FORTUNE ON FURS AN ADDITIONAL DELIGHT IS THE MAPPING AND NAMING OF HIS NEW
WORLD IT WAS LIKE BEING CHILDREN AGAIN HE WRITES IN HIS DIARY

CARTWRIGHT'S GREATEST ADVENTURE WAS HIS COURTSHIP OF THE INUIT WHO CAME TO
TRUST HIM AS THEY TRUSTED NO OTHER SETTLER IN 1772 HE PERSUADED A FEW
INUIT TO ACCOMPANY HIM TO ENGLAND THEIR ARRIVAL SET OFF A FLURRY OF
EXCITEMENT IN BRITISH SCIENTIFIC CIRCLES EVEN THE KING RECEIVED THEM

YET CARTWRIGHT'S SUCCESS TURNED QUICKLY TO DISASTER THE INUIT CAUGHT
SMALLPOX ON HER RETURN TO NEWFOUNDLAND THE ONE INUIT SURVIVOR CARRIED THE
DISEASE TO HER PEOPLE

THE EVIL CARTWRIGHT BROUGHT THE INUIT HAUNTS HIM EVEN AS PERSONAL DISASTERS
OVERTAKE HIM AND DRIVE HIM OUT OF NEWFOUNDLAND AN EXHAUSTED DEFEATED MAN
ALTHOUGH STILL NOT 40

MR STEFFLER SENT THE FIRST SHIVER DOWN MY SPINE CAUSED SOLELY BY AN ACT OF
WRITING SINCE I WATCHED THE MOMENT IN STANLEY KUBRICK'S THE SHINING WHEN
THE CAMERA FIRST SHOWS WHAT JACK NICHOLSON HAS BEEN TYPING CARTWRIGHT HIS
NEWFOUNDLAND FINISHED HIS LIFE IN TATTERS REVIEWS HIS NEWFOUNDLAND DIARIES
FOR POSSIBLE PUBLICATION THEN HE HAS ANOTHER IDEA HE PICKS UP HIS PEN AND
  I WON'T GIVE IT AWAY BUT IT IS A RIVETING MOMENT

IN OPERATION WANDERING SOUL MR POWERS AIMS NOT FOR SHIVERS BUT FOR
REVULSION THE NOVEL IS HARD TO READ IN THE WAY THAT HORROR MOVIES ARE HARD
TO WATCH HIS SURGEON IS OFTEN CUTTING MAIMED CHILDREN IN THE OPERATING
ROOM

MR POWERS IS A DAZZLING STYLIST WHOSE FIRST THREE NOVELS MOST RECENTLY
THE GOLD BUG VARIATIONS WERE WIDELY PRAISED HIS WORDPLAY MAKES
COMPARISONS WITH STANLEY ELKIN AUTHOR OF A BETTER NOVEL ABOUT TERMINALLY
ILL CHILDREN AND THOMAS PYNCHON INEVITABLE SENTENCES AND PARAGRAPHS OF
STRIKING ORIGINALITY AND POWER FILL HIS PAGES

BUT TO WHAT END OPERATION WANDERING SOUL IS DESPITE ITS CONSIDERABLE
LENGTH A ONENOTE BOOK WITH SO LITTLE PLOT DEVELOPMENT THAT ITS STYLE IS
ITS ONLY INTEREST MR POWERS DECRIES THE BRUTALIZATION OF CHILDREN BY MAN
AND DISEASE THAT ISN'T A CASE THAT NEEDS MUCH ARGUING IT IS HARD TO THINK
OF ANOTHER NOVEL IN WHICH SUCH SOPHISTICATED PRESENTATION WRAPS SUCH A
SIMPLE CORE

INTO KRAFT'S GRIM WORLD COMES LINDA ESPERA A PHYSICAL THERAPIST AS FULL OF
HOPE AS HER NAME SUGGESTS BUT KRAFT AT AGE 33 CANNOT COPE DESPITE HIS
SURGEON'S CRAFT HE HAS NO POWER KRAFT MEANS POWER IN GERMAN OVER EVENTS
MORE OFTEN THAN NOT HIS PATIENTS CAN'T BE SAVED MOST HEARTRENDINGLY AN
ANGELIC LAO BOATGIRL REFUGEE

CAN THE BEAUTIFUL ESPERA'S OPTIMISM NOT TO MENTION HER LOVE WORK A CURE
FOR KRAFT'S DESPAIR OR AS MR POWERS WRITES IN A LOVELY PASSAGE MIGHT
SHE EVEN MAKE HER NEW SURGEON SEE THAT TO PRETEND TO LIVE AS IF LIFE MIGHT
YET LEAD ALL THE WAY TO UNEXPECTED DELIVERANCE IS THE BEST WAY TO KEEP FROM
DYING IN MIDFABLE COULD SHE GET HIM TO SIT IN WITH HER CIRCLE OF STRICKEN
LISTENING CHILDREN AND TAKE PART IN THE PROMISE OF FICTION THE PLEASURE
OUR ONE MORAL OBLIGATION

THE CONTEST ISN'T EVEN CLOSE INSTEAD RIFFS ON CRUELTY TO CHILDREN
PROLIFERATE LIKE KUDZU SPREADING ACROSS A HILLSIDE THE SCHEHERAZADE OF THE
SICKROOM GETS BULLDOZED UNDER BY KRAFT'S CONVICTION THAT THE HUMAN SPECIES
IS CLINICALLY PSYCHOTIC FOR HIMSELF THERE IS THE ADDEDAND CLICHEDBURDEN
THAT HIS FATHER WAS A GOVERNMENT AGENT WHO WROUGHT EVIL IN INDOCHINA AND
ELSEWHERE ON BEHALF OF THE US WHICH KRAFT REFERS TO AS THE EVIL
OVERLORD

SO KRAFT IS AN EMOTIONAL LEPER IN A CESSPOOL OF A PEDIATRIC WARD IN A
HELLISH CITY THE BOOK OPENS THAT WAY AND BY THE END NOTHING HAS HAPPENED
EXCEPT KRAFT'S WORLD HAS BECOME INCREMENTALLY WORSE NOT EVEN MR POWERS'S
REMARKABLE LANGUAGE MAKES AN ADEQUATE COATING FOR THIS PILL 9307130077
930713 WHO'S NEWS AIRLINE CASE'S JUDGE IS STRICT AND HUMOROUS 
 BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL

GALVESTON TEXAS DON'T BE LATE FOR US DISTRICT JUDGE SAMUEL B KENT'S
COURTROOM DON'T ARGUE WITH HIM IN FRONT OF A JURY AND DON'T TOUCH HIS
CURTAINS

JUDGE KENT IS A NONONSENSE JURIST WITH A PLETHORA OF RULES AND ADMONITIONS
FOR THOSE TRYING CASES BEFORE HIM AND IT'S FALLEN TO HIM TO PRESIDE OVER
WHAT MAY BE THE BIGGEST CORPORATE ANTITRUST TRIAL TO TAKE PLACE THIS YEAR A
PREDATORY PRICING CASE BROUGHT BY CONTINENTAL AIRLINES AND NORTHWEST
AIRLINES AGAINST AMR CORP'S AMERICAN AIRLINES THE NATION'S MOST RECENT BIG
CORPORATE ANTITRUST TRIAL DRAGGED ON FOR 115 DAYS JUDGE KENT HAS GIVEN EACH
SIDE IN THIS CASE WHICH BEGAN YESTERDAY 12 DAYS PERIOD

YET AT THE SAME TIME JUDGE KENT IS A MAN OF ABUNDANT GOOD HUMOR AND
GIRTH THE STRICT DISCIPLINARIAN PEPPERS HIS MOVEITALONG COURT DEMEANOR
WITH HUMOROUS AND FRIENDLY ASIDES JUDGE KENT WEARS A MICKEY MOUSE WATCH
AND A BART SIMPSON DOLL SITS ON A TABLE BEHIND HIM IN HIS CHAMBERS THE
JURY WILL HEAR FIVE WEEKS OF TESTIMONY AND HEAR DOZENS OF DEPOSITIONS
JUDGE KENT SAID THIS MONTH AT A PRETRIAL HEARING DURING HALF OF THEM I
SUSPECT DROOL WILL BE RUNNING FROM THEIR CHINS AT ANOTHER HEARING HE
WARNED THAT HE WOULD HEAR A RETRIAL OF THE CASE WHEN PIGS FLY IN FORMATION
OVER EUROPE

HE TAKES CHARGE OF A CASE HE'S QUICK TO MAKE A DECISION HE KNOWS A LOT OF
LAW SAYS LEE WARE OF THE FIRM WARE SNOW FOGEL & JACKSON OF HOUSTON
WHO HAS PRACTICED BEFORE JUDGE KENT AND KNEW HIM BEFORE HE TOOK THE BENCH
IT'S CLEAR HE'LL USE HIS FULL PANOPLY OF POWERS TO GET FULL BEHAVIOR FROM
LAWYERS THAT HE EXPECTS TO SEE AT THE SAME TIME SAM HAD A REAL GOOD
SENSE OF HUMOR AND THAT'S NOT GONE AWAY WITH TAKING THE BENCH

BOTH ASPECTS OF HIM WERE ON DISPLAY IN A RECENT SKIRMISH WITH DOW JONES &
CO PARENT COMPANY OF THE WALL STREET JOURNAL CONCERNED THAT SOME OF THE
MOTIONS IN THE AIRLINE CASE WERE FILED UNDER SEAL THE JOURNAL FILED PAPERS
TO HAVE THEM MADE PUBLIC JUDGE KENT WHO HAD HOPED THE PARTIES COULD WORK
OUT THE ISSUES THEMSELVES WAS CLEARLY ANGRY THAT THE MOVE MAY HAVE SLOWED
DOWN THE CASE DOW JONES'S ARROGANCE IN EXPECTING THE COURT AND THE PARTIES
TO PUT ITS NEED AHEAD OF THEIR OWN IS BOTH STAGGERING AND DISAPPOINTING HE
WROTE IN HIS ORDER HE ALSO THREATENED TO HOLD THE COMPANY IN CONTEMPT IF IT
TRIED TO REARGUE THE ISSUE

YET NOT A WEEK LATER WHEN A REPORTER FROM THE JOURNAL ASKED TO MAKE AN
APPOINTMENT TO INTERVIEW THE JUDGE HE JOKED ABOUT THE MOTION AND ASKED DID
YOU GET WHAT YOU WERE LOOKING FOR

JUDGE KENT 44 YEARS OLD SAYS PRESIDING OVER THIS TRIAL IS LIKE COACHING
LAST YEAR'S OLYMPIC BASKETBALL DREAM TEAM I FEEL LIKE BASKETBALL COACH
CHUCK DALY MUST HAVE FELT IN BARCELONA HE SAYS

THE CASE ITSELF PITS AMERICAN THE NATION'S BIGGEST AND RICHEST AIRLINE
AGAINST TWO FINANCIALLY WEAKER COMPETITORS CONTINENTAL AND NORTHWEST
CONTEND THAT AMERICAN TRIED TO RUN THEM OUT OF BUSINESS LAST SUMMER WITH
SOCALLED PREDATORY FARE CUTS AMERICAN COUNTERS THAT IT WAS SIMPLY TRYING
TO ATTRACT CUSTOMERS THE TRIAL IS EXPECTED TO BE A TEST CASE IN THE GROWING
DEBATE OVER WHAT CONSTITUTES COMPETITIVE PRICING AND PREDATORY BEHAVIOR

JOSEPH JAMAIL IS REPRESENTING NORTHWEST MR JAMAIL KNOWN AS THE KING OF
TORTS WRESTED AN 11 BILLION DAMAGE AWARD FROM TEXACO INC FOR HIS CLIENT
PENNZOIL CO WHICH HAD SUED TEXACO FOR INTERFERING WITH ITS PLANNED
PURCHASE OF PARTS OF GETTY OIL CO THEN THERE'S DAVID BOIES OF NEW YORK'S
CRAVATH SWAIN & MOORE WHO SPARRED WITH MR JAMAIL IN THE TEXACOPENNZOIL
CASE WHICH WAS SETTLED FOR 3 BILLION HE IS REPRESENTING CONTINENTAL AS
IS HIS WIFE MARY BOIES A FORMER CIVIL AERONAUTICS BOARD ATTORNEY NOW IN
SOLO PRACTICE SO IS PARKER FOLSE OF HOUSTON'S SUSSMAN GODFREY

AMERICAN IS REPRESENTED BY FINIS COWAN A FORMER FEDERAL JUDGE AND IRV
TERRELL A BAKER & BOTTS ATTORNEY WHO WORKED WITH MR JAMAIL ON THE
TEXACOPENNZOIL CASE THESE ARE BY NO MEANS THE ONLY LAWYERS INVOLVED IN THE
CASE SO MANY ATTEND FOR EACH SIDE THAT THE FIRST ROW OF THE COURTROOM
SEATING ABOUT 25 HAS BEEN RESERVED TO HOLD THE SPILLOVER

BORN IN DENVER TRANSPLANTED TO HOUSTON AT 12 JUDGE KENT IS THE SON OF A
NAVY MAN WHO DIED AT A YOUNG AGE IN HIS FATHER'S HONOR HE SOUGHT A
COMMISSION TO ANNAPOLIS NAVAL ACADEMY FROM THENCONGRESSMAN GEORGE BUSH BUT
HE QUICKLY LEARNED HE WAS NOT CUT OUT FOR THE SCHOOL

JUDGE KENT CLAIMS THE DISTINCTION OF HAVING RECEIVED A SCORE OF EIGHT OUT
OF 100 ON ONE FINAL AFTER THREE MISERABLE SEMESTERS HE RESIGNED HIS
COMMISSION AND TRANSFERRED TO THE UNIVERSITY OF TEXAS WHERE HE SAYS HE
GRADUATED MAGNA CUM BARELY HE LATER ATTENDED THAT UNIVERSITY'S LAW
SCHOOL WHERE HE FINISHED WITH SIMILAR LACK OF DISTINCTION AT GRADUATION
WHEN OTHER STUDENTS LISTED THEIR SCHOLASTIC AWARDS LAW REVIEW AND CLASS
STANDING HE PUT SIMPLY HAS A JOB HE PRACTICED AT THE LAW FIRM ROYSTON
RAYZOR VICKERY & WILLIAMS IN GALVESTON UNTIL 1990

THAT'S WHEN JUDGE KENT WAS APPOINTED TO THE BENCH ON THE SAME DAY THAT IRAQ
INVADED KUWAIT JUDICIAL APPOINTEES TYPICALLY RECEIVE A TELEPHONE CALL FROM
THE PRESIDENT INFORMING THEM OF THEIR NOMINATIONS WHICH MUST BE APPROVED BY
THE US SENATE BUT PRESIDENT BUSH WAS OTHERWISE OCCUPIED THAT DAY SO
JUDGE KENT SAYS HE WENT FOR DRINKS WITH FELLOW LAWYERS AND WENT HOME

THAT'S WHERE HE WAS STANDING IN HIS KITCHEN WEARING ONLY BOXER SHORTS AND
FEEDING BOLOGNA TO HIS CAT PUSHKIN WHEN THE TELEPHONE RANG HIS DAUGHTER
INFORMED HIM ONE OF YOUR JERK FRIENDS WAS ON THE PHONE IT WAS THE
PRESIDENT APOLOGIZING FOR CALLING SO MUCH LATER THAN PLANNED THE ONETIME
ANNAPOLIS ATTENDEE STOOD AT ATTENTION

NOW THE ATTORNEYS WHO COME BEFORE HIM MUST PAY STRICT ATTENTION TO HIS MANY
RULES LAWYERS WHO ARE LATE FOR APPEARANCES BEFORE HIM ARE FINED 100 THOSE
WHO DON'T SHOW UP ARE FINED 250 THE FIRST TIME AFTER THAT IT'S
ARMAGEDDON HE SAYS RANGING FROM SANCTIONS TO HAVING THEIR CASES
DISMISSED JUDGE KENT SAYS HE COLLECTED NEARLY 10000 IN FINES DURING HIS
FIRST YEAR THE AMOUNT HAS DROPPED PRECIPITOUSLY SINCE THEN

HE HAS WARNED THE LAWYERS IN THIS CASE NOT TO TOUCH THE CREAMY WHITE
CURTAINS IN THE COURTROOM HE HAS RECENTLY RESTORED TO ITS 1930S SPLENDOR
AND FORBIDDEN THEM FROM MAKING SO MUCH AS HAND GESTURES OR FACIAL
EXPRESSIONS IF THAT CONVEYS ANY MESSAGES TO THE JURY JUDGE KENT ONCE THREW
A LAWYER NOT JUST OUT OF HIS COURTROOM BUT OUT OF THE COURTHOUSE FOR
ALLEGEDLY SIGNALING A WITNESS

NOT SURPRISINGLY FEW LAWYERS ARE WILLING TO SAY ANYTHING CRITICAL ABOUT
JUDGE KENT BUT THERE IS CONCERN THAT HIS ROCKET DOCKET SHORTCHANGES CASES
THAT MAY REQUIRE MORE TIME THE JUDGE DISAGREES IT'S IMPERATIVE THAT
PEOPLE HAVE PROMPT ACCESS TO THE COURT AND BE FAIRLY HEARD HE SAYS IN AN
INTERVIEW MY MOST PRECIOUS ASSET IS TIME I HAVE ONLY 50 TRIAL WEEKS A
YEAR 9307130076 930713 FINANCING BUSINESS PARAMOUNT COMMUNICATIONS
INC

PARAMOUNT COMMUNICATIONS INC NEW YORK SAID IT WILL OFFER 300 MILLION OF
SENIOR DEBT TO THE PUBLIC USING PROCEEDS TO RETIRE SOME NOTES AND FINANCE
TWO ACQUISITIONS THE COMPANY PLANS TO SELL 150 MILLION OF 5 7/8 NOTES DUE
2000 AND 150 MILLION OF 7 1/2 DEBENTURES DUE 2023 THE UNDERWRITING WILL
BE LED BY SALOMON BROTHERS PROCEEDS WILL BE USED TO REFUND 100 MILLION OF
8 1/2 SENIOR NOTES DUE 1996 AND FUND ACQUISITION OF TELEVISION STATION
WKBDTV IN DETROIT AND THE REMAINING INTEREST IN CANADA'S WONDERLAND THEME
PARK 9307130075 930713 BUSINESS BRIEF MANVILLE CORP RIVERWOOD UNIT
SET TO SELL OR LEASE TIMBERLAND RIGHTS

CASHHUNGRY RIVERWOOD INTERNATIONAL CORP SAID IT AGREED TO SELL OR TO
ASSIGN THE LEASE RIGHTS ON 60000 ACRES OF TIMBERLANDS IN LOUISIANA AND
TEXAS TO JOHN HANCOCK MUTUAL LIFE INSURANCE CO ATLANTABASED RIVERWOOD IS
805OWNED BY DENVERBASED MANVILLE CORP WHICH MAKES BUILDING PRODUCTS

TERMS WEREN'T DISCLOSED BUT RIVERWOOD SAID THE SALE WILL PRODUCE AN
ESTIMATED 1993 EARNINGS INCREASE OF 10 CENTS A SHARE ON 62 MILLION SHARES
OUTSTANDING NET PROCEEDS WILL BE REINVESTED IN THE COMPANY'S BUSINESS
RIVERWOOD SAID IN 1992 RIVERWOOD EARNED 438 MILLION OR 78 CENTS A
SHARE ON SALES OF 114 BILLION

AT MANVILLE'S ANNUAL MEETING LAST MONTH W THOMAS STEPHENS MANVILLE'S
CHAIRMAN SAID THAT UNLESS RIVERWOOD'S SITUATION IMPROVED MANVILLE MUST BE
PREPARED TO INJECT CAPITAL INTO THE UNIT RIVERWOOD DENIED THAT THE
AGREEMENT WITH JOHN HANCOCK WAS MOTIVATED BY A NEED FOR CASH 9307130074
930713 ABREAST OF THE MARKET INDUSTRIALS EDGE UP 332 TO 352438 
DESPITE FALL IN AIRLINE AUTO STOCKS  BY ANITA RAGHAVAN STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK STOCKS EDGED HIGHER DESPITE WEAKNESS IN A HANDFUL OF AIRLINE
AUTO AND INTERESTRATE SENSITIVE STOCKS

THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 332 POINTS TO 352438 IN
LACKLUSTER TRADING THE STANDARD & POOR'S 500STOCK INDEX ADDED 085 TO
44898 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 045 TO
24864

VOLUME ON THE BIG BOARD SLOWED WITH 202303830 SHARES CHANGING HANDS DOWN
FROM 233513580 SHARES FRIDAY ADVANCING ISSUES OUTNUMBERED DECLINERS
1027 TO 898

DAVID SHULMAN STOCK MARKET STRATEGIST AT SALOMON BROTHERS SAID HE WAS
DISAPPOINTED BY THE MARKET'S PERFORMANCE AND TOOK IT AS A SIGN THAT
INVESTORS THINK STOCKS ARE TOO PRICEY

THERE WERE MANY REASONS FOR THE MARKET TO RALLY BUT IT DIDN'T HE SAID

EVEN THOUGH INTEREST RATES CONTINUED TO FALL AND COMMODITY PRICES DECLINED
STOCKS TREADED WATER MOST OF THE SESSION AS INVESTORS ACTED TENTATIVELY
BEFORE TODAY'S REPORT ON JUNE PRODUCER PRICES

THERE WERE A FEW EXCEPTIONS

A SPIKE IN OIL PRICES SENT AIRLINE STOCKS DIVING AND DROVE THE THE DOW JONES
TRANSPORTATION AVERAGE 1344 POINTS LOWER TO 149572 DELTA AIR LINES
DROPPED 1 TO 46 7/8 USAIR TUMBLED 1 TO 13 3/4 AMR THE PARENT OF AMERICAN
AIRLINES LOST 1/2 TO 61 AND UAL THE PARENT OF UNITED AIRLINES SLIPPED
5/8 TO 122 7/8

INVESTORS ALSO DUMPED CAR STOCKS WITH MOST OF THE SELLING OCCURRING IN FORD
MOTOR SALOMON BROTHERS ANALYST JACK KIRNAN DOWNGRADED FORD'S STOCK TO A
HOLD FROM A BUY BECAUSE OF WHAT HE SEES AS A DETERIORATION IN PRODUCT
MIX MR KIRNAN SAID FORD HAS BEEN INCREASINGLY RELYING ON FLEET SALES
WHICH ARE LESS PROFITABLE THAN RETAIL SALES FORD SLUMPED 2 TO 50 1/8
CHRYSLER FELL 5/8 TO 46 7/8 AND GENERAL MOTORS DROPPED 5/8 TO 46 7/8

AMID INTERESTRATE SENSITIVE STOCKS FEDERAL HOME LOAN MORTGAGE CORP AND
FEDERAL NATIONAL MORTGAGE ASSOCIATION TOOK IT ON THE CHIN IN A REPORT THE
CONGRESSIONAL BUDGET OFFICE SAID THE DOMINANCE OF FANNIE MAE AND FREDDIE MAC
IN THE FIXEDRATE MORTGAGE MARKET RAISES SOME PUBLIC POLICY CONCERNS THAT
THIS MARKET MAY NOT BE FULLY COMPETITIVE

FREDDIE MAC DROPPED 1 5/8 TO 53 1/8 AND FANNIE MAE FELL 2 TO 82 1/2 DESPITE
REPORTING IMPROVED SECONDQUARTER EARNINGS PETER TREADWAY AN ANALYST AT
SMITH BARNEY HARRIS UPHAM SAID THE FEARS ARE OVERBLOWN THE REPORT IF
READ SOBERLY IS A PLUS FOR FANNIE MAE AND FREDDIE MAC NOT A NEGATIVE HE
SAID

HOME SHOPPING NETWORK TOPPED THE BIG BOARD'S MOST ACTIVE LIST SURGING 1 TO
13 5/8 QVC NETWORK OFFERED TO ACQUIRE THE SCANDALRIDDEN TELEVISION
SHOPPING NETWORK THROUGH AN EXCHANGE OF STOCK

DUTY FREE INTERNATIONAL PLUNGED 6 1/4 TO 19 7/8 THE RIDGEFIELD CONN
RETAILER SAID IT EXPECTS SECONDQUARTER PROFIT WILL FALL TO 28 CENTS TO 31
CENTS A SHARE FROM 35 CENTS A YEAR EARLIER DUTY FREE ATTRIBUTED THE DROP TO
DEPRESSED SALES AT STORES ALONG THE CANADIANUS BORDER

ANDREA ELECTRONICS SHOT UP 9 5/8 TO 38 1/2 IN TRADING ON THE AMERICAN STOCK
EXCHANGE THE LONG ISLAND CITY NY COMPANY SAID IT SIGNED A THREEYEAR
DISTRIBUTION AGREEMENT WITH TECHNOLOGY SERVICE GROUP FOR THE RIGHT TO
DISTRIBUTE TWO OF ANDREA'S ACTIVE NOISE CANCELLATION KITS TO SEVEN REGIONAL
BELL COMPANIES THE CONTRACT WILL RESULT IN AT LEAST 10 MILLION IN SALES
OVER A THREEYEAR PERIOD ANDREA ELECTRONICS SAID SPECULATIVE FEVER HAS
SENT ANDREA ELECTRONICS SHARES SWINGING WILDLY OVER THE PAST SEVERAL MONTHS

ALCO STANDARD SKIDDED 4 3/4 TO 44 THE PAPER AND OFFICE EQUIPMENT
DISTRIBUTOR SAID IT EXPECTS TO REPORT THIRDQUARTER NET INCOME FROM
CONTINUING OPERATIONS OF 56 CENTS TO 59 CENTS A SHARE IN THE YEARAGO THIRD
QUARTER ALCO STANDARD REPORTED PROFIT OF 58 CENTS A SHARE INCLUDING A GAIN
OF THREE CENTS A SHARE FROM THE SALE OF AN INVESTMENT THE COMPANY SAID THE
SHORTFALL IN EARNINGS REFLECTS A DELAY IN ITS ABILITY TO PASS ON RECENT
PAPER PRICE INCREASES FROM SUPPLIERS

BARNETT BANKS GAINED 1/2 TO 48 1/2 THE COMMERCIAL BANK REPORTED
SECONDQUARTER PROFIT JUMPED TO 101 A SHARE FROM 60 CENTS A SHARE A YEAR
EARLIER

MESA INC ADDED 5/8 TO 7 1/8 WILBUR ROSS THE FINANCIAL ADVISER TO MESA'S
BONDHOLDERS SAID THE PROPOSED BOND SWAP AGREEMENT BETWEEN MESA AND ITS
SUBORDINATED BONDHOLDERS COULD BECOME EFFECTIVE AS EARLY AS FRIDAY
9307130073 930713 US RAWSTEEL OUTPUT SLID 07 LAST WEEK

WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 07 LAST
WEEK TO 1855000 TONS FROM 1869000 TONS THE PREVIOUS WEEK THE AMERICAN
IRON AND STEEL INSTITUTE SAID

LAST WEEK'S OUTPUT ROSE 46 FROM THE 1774000 TONS PRODUCED A YEAR
EARLIER THE INDUSTRY USED 885 OF ITS CAPABILITY LAST WEEK COMPARED WITH
887 THE PREVIOUS WEEK AND 823 A YEAR AGO

THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT
WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A
GIVEN WEEK 9307130072 930713 POLITICS & POLICY  DOING THE DEAL 
THE DEFICITREDUCTION CONFERENCE PRESSURE BUILDS TO CUT OR EVEN SCRAP 
ENERGY TAX IN DEFICITREDUCTION BILL  BY JACKIE CALMES AND JOHN
HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL

WASHINGTON PRESSURE IS GROWING TO LIMIT GREATLY THE PROPOSED ENERGY TAX
IN THE PENDING DEFICITREDUCTION BILL AS RANKANDFILE DEMOCRATS RETURN TO
THE CAPITOL FROM A WEEKLONG RECESS

IN PART THE SITUATION REFLECTS THE FLAK MANY CAUGHT ABOUT THE BILL IN THEIR
DISTRICTS IN CALIFORNIA THERE'S A LOT OF ANGRY PEOPLE OUT THERE SAYS
SECONDTERM REP CALVIN DOOLEY A DEMOCRAT WHO HELD TOWN MEETINGS IN HIS
HEAVILY AGRICULTURAL DISTRICT

REP DOOLEY FOR ONE VOTED FOR THE HOUSE BILL EVEN THOUGH HE OPPOSED
PRESIDENT CLINTON'S PROVISION FOR A BROADBASED TAX ON ENERGY CONSUMPTION HE
NOW IS AMONG THOSE HOUSE DEMOCRATS WHO PREFER THE SENATE VERSION'S FUELSTAX
INCREASE OF 43 CENTS A GALLON TOMORROW MEANWHILE A MIX OF LIBERALS AND
CONSERVATIVES WILL PRESS A CAUCUS OF ALL HOUSE DEMOCRATS TO DROP ANY ENERGY
LEVY S THAT MOST MIDDLECLASS TAXPAYERS AREN'T TAXED FURTHER AND INSTEAD
RAISE ALL THE NEEDED REVENUE FROM BUSINESSES AND TOPINCOME INDIVIDUALS

BUT THESE EFFORTS TO DROP OR EVEN WHITTLE DOWN AN ENERGY TAX ARE EASIER SAID
THAN DONE AS HOUSE AND SENATE LEADERS BEGIN THE HIGHSTAKES JOB THIS WEEK OF
NEGOTIATING THE DIFFERENCES BETWEEN THEIR VERSIONS OF MR CLINTON'S ECONOMIC
PROGRAM THOSE NEGOTIATORS WILL NEED ALL THE REVENUE THEY CAN RAISE TO
ACHIEVE MR CLINTON'S GOAL OF CUTTING THE DEFICIT 500 BILLION OVER FIVE
YEARS AND PAYING FOR SOME INITIATIVES BENEFITING SMALL BUSINESS AND POOR
PEOPLE

MR CLINTON'S PROPOSED TAX ON ENERGY APPLIED AGAINST THE HEAT CONTENT OF
FUELS WOULD HAVE RAISED 715 BILLION OVER FIVE YEARS AND MORE THAN 20
BILLION ANNUALLY WHEN FULLY PHASED IN THE SENATE'S PROPOSED TAX INCREASE ON
GASOLINE AND OTHER TRANSPORTATION FUELS WOULD RAISE A BIT MORE THAN 20
BILLION OVER FIVE YEARS

THE LAWMAKERS' COMPLAINTS ABOUT THE FORM AND SIZE OF AN ENERGY TAX ARE
STOKED BY RECENT COMMENTS FROM THE CHAIRMEN OF THE HOUSE AND SENATE
TAXWRITING COMMITTEES REP DAN ROSTENKOWSKI D ILL AND SEN DANIEL
MOYNIHAN D NY THAT NEGOTIATORS MIGHT WELL ACCEPT THE SENATE FUELS
TAX OR EVEN RAISE IT SLIGHTLY AND COMBINE IT WITH SOME OTHER
ENERGYRELATED LEVY SUCH AS A TAX ON RESIDENTIAL AND COMMERCIAL UTILITY
BILLS AND HEATING OIL

THAT WOULD STILL LEAVE THE BILL SHORT OF THE REVENUE THAT MR CLINTON'S
ENERGY TAX WOULD RAISE ESPECIALLY OVER THE LONG TERM BUT IN ANY CASE IT
ISN'T THE DIRECTION IN WHICH SOME DEMOCRATS WANT THEIR PARTY TO GO

I'M NOT TRYING TO LIMIT THE ENERGY TAX I'M TRYING TO ELIMINATE IT SAID
REP DAVE OBEY A WISCONSIN LIBERAL WHO IS LEADING A COALITION WITH
CONSERVATIVE REP GLENN ENGLISH OF OKLAHOMA BOTH MEN WANT TO STRIP THE BILL
OF TAX INCREASES THAT MIDDLE AND LOWERINCOME TAXPAYERS WOULD BEAR AND THUS
BLUNT REPUBLICANS' POLITICAL ATTACKS ON THE BILL

THERE SHOULD BE NO TAX INCREASES ON ANYONE WITH INCOME LESS THAN 100000
SAID REP ENGLISH WHO OPPOSED THE HOUSE BILL BECAUSE OF MR CLINTON'S
ENERGY TAX HE SAID HE COULD SUPPORT A BILL THAT DIDN'T HAVE ANY ENERGY TAX
THOUGH HE DIDN'T RULE OUT VOTING FOR A MINIMAL FUELS TAX SUCH AS THE
SENATE'S PROPOSAL

HOUSE REPUBLICANS MAY PROVOKE A TEST VOTE ON THE MATTER THIS WEEK THE HOUSE
GOP LEADERSHIP PLANS TO MEET TODAY TO CONSIDER OFFERING A MOTION TO INSTRUCT
HOUSE NEGOTIATORS TO REMOVE ANY ENERGY TAXES

ONE PROBLEM FOR THOSE TARGETING THE ENERGY TAX IS THAT THEIR ALTERNATIVE
REVENUE SOURCE A ONEPERCENTAGEPOINT INCREASE IN THE BILL'S PROPOSED
INCOMETAX RATES FOR CORPORATIONS AND UPPERINCOME INDIVIDUALS ISN'T
POPULAR WITH SOME MODERATETOCONSERVATIVE DEMOCRATS MR DOOLEY FOR
EXAMPLE IS AGAINST THE IDEA OF ABANDONING ENERGY TAXES ALTOGETHER IN FAVOR
OF A HIGHER CORPORATE LEVY

THE FINANCIAL MARKETS LIKEWISE WOULD BE LIKELY TO REACT NEGATIVELY TO
DROPPING AN ENERGY TAX TAKING IT AS A SIGN THAT CONGRESS LACKS RESOLVE FOR
CUTTING THE DEFICIT THE MARKETS APPLAUDED AND LONGTERM INTEREST RATES BEGAN
TO FALL SHARPLY LAST WINTER AFTER TREASURY SECRETARY LLOYD BENTSEN INDICATED
THAT THE ADMINISTRATION WOULD INCLUDE A BROAD ENERGY TAX IN ITS ECONOMIC
PROGRAM

IN THE COMING CONFERENCE DELIBERATIONS WHICH ARE SET TO OPEN BY THURSDAY
THE ONE FACTION THAT SEEMS ASSURED OF A MINIMAL ROLE IS THE REPUBLICAN
PARTY NO REPUBLICAN IN EITHER CHAMBER VOTED FOR THE DEFICITREDUCTION BILLS
DUE LARGELY TO THEIR OPPOSITION TO THE INCOMETAX INCREASES TO 35 FROM
34 FOR CORPORATIONS AND TO AS HIGH AS 396 FOR TOPINCOME INDIVIDUALS

BUT REPUBLICANS MAY SEIZE UPON A PARLIAMENTARY PROVISION IN THE SENATE'S
BUDGET RULES TO ATTACK KEY PROVISIONS OF THE PACKAGE AND THEREBY DIVIDE
DEMOCRATS YESTERDAY GOP CONGRESSIONAL STAFFERS MET TO DISCUSS ITEMS THEY
COULD TRY TO STRIKE FROM THE FINAL BILL BY INVOKING THE SOCALLED BYRD RULE
NAMED FOR ITS AUTHOR APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD D
WVA THIS RULE CAN BE USED IN EFFECT TO KILL PROVISIONS CONSIDERED
EXTRANEOUS TO DEFICITREDUCTION

THE PROVISIONS INCLUDE SOME IN THE HOUSE BILL THAT ARE MOST IMPORTANT TO
HOLDING THE SUPPORT OF MANY DEMOCRATS PARTICULARLY LIBERALS EXPANSION OF
THE FOODSTAMP PROGRAM CREATION OF EMPOWERMENT ZONES WITH TAX INCENTIVES
FOR BUSINESS INVESTMENT AND A LARGER TAX CREDIT FOR THE WORKING POOR DUE
TO THE PERCEIVED PARLIAMENTARY THREAT THE SENATE LEFT THOSE PROVISIONS AND
SOME OTHERS OUT OF ITS VERSION BUT HOUSE DEMOCRATS ALWAYS SUSPICIOUS OF
THE SENATE AND ITS RULES ARE INSISTING THAT THEY BE PART OF THE FINAL
COMPROMISE 9307130071 930713 BUSINESS BRIEF ASPEN SKIING CO 
AGREEMENT REACHED TO BUY ASPEN HIGHLANDS SKI RESORT

ASPEN SKIING CO SAID IT REACHED AN AGREEMENT WITH TEXAS REALESTATE
DEVELOPER GERALD HINES TO BUY ASPEN HIGHLANDS SKI RESORT TERMS WEREN'T
DISCLOSED

MR HINES OF HOUSTON HOLDS THE OPTION TO BUY ASPEN HIGHLANDS FROM HARVARD
UNIVERSITY AND THE SKI AREA'S FOUNDER WHIPPLE JONES MR JONES DONATED MUCH
OF THE STOCK OF THE SKI RESORT TO HIS ALMA MATER EARLY THIS YEAR ASPEN
SKIING IS HELD BY THE LESTER CROWN FAMILY OF CHICAGO

THE DEAL WOULD CONSOLIDATE ALL FOUR ASPEN AREA SKI RESORTS INCLUDING THE
HIGHLANDS ASPEN MOUNTAIN SNOWMASS SKI AREA AND TIEHACK/BUTTERMILK INTO
ONE OWNERSHIP MAKING ASPEN SKIING THE FIFTHLARGEST SKI COMPANY IN THE
US BASED ON SKIER VISITS 9307130070 930713 BUSINESS BRIEF LUBY'S
CAFETERIAS INC PAYOUT IS RAISED TO 15 CENTS A SHARE BUYBACK IS
PLANNED

LUBY'S CAFETERIAS INC RAISED ITS QUARTERLY DIVIDEND TO 15 CENTS A SHARE
FROM 135 CENTS AND SAID IT WILL BUY BACK AS MANY AS 25 MILLION OF ITS
COMMON SHARES ON THE OPEN MARKET THROUGH FISCAL 1994

THE DIVIDEND IS PAYABLE SEPT 27 TO STOCK OF RECORD SEPT 10 A SPOKESMAN
FOR THE CAFETERIA CHAIN WHICH HAS RAISED ITS DIVIDEND EVERY YEAR SINCE
1965 SAID THE INCREASE WAS PROMPTED BY A 13 EARNINGS IMPROVEMENT DURING
THE FIRST NINE MONTHS OF FISCAL 1993

YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LUBY'S
COMMON CLOSED AT 21875 UP 75 CENTS ON VOLUME OF 90000 SHARES
9307130069 930713 WHO'S NEWS STANDARD PRODUCTS CO

STANDARD PRODUCTS CO CLEVELAND LARRY J ENDERS 51 YEARS OLD FORMERLY
VICE PRESIDENT OF PURCHASING AND SUPPLY WORLDWIDE WAS NAMED PRESIDENT AND
CHIEF EXECUTIVE OFFICER OF OLIVER RUBBER CO A UNIT OF THE MAKER OF RUBBER
AND PLASTIC PARTS EFFECTIVE YESTERDAY HE SUCCEEDS JOHN D WOODLAND 57
WHO'S RECOVERING FROM AN ILLNESS UPON HIS RETURN TO FULLTIME EMPLOYMENT
MR WOODLAND WILL SERVE AS EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING
AT OLIVER RUBBER A SUCCESSOR TO MR ENDERS WILL BE NAMED LATER THE COMPANY
SAID STANDARD MAKES RUBBER AND PLASTIC PARTS FOR THE AUTOMOTIVE INDUSTRY
RUBBERIZED TRACK FOR MILITARY VEHICLES AND PLASTIC AND MAGNETIC DOOR SEALS
9307130068 930713 BUSINESS BRIEF KLEINERT'S INC SPINOFF OF TEXTILE
DIVISION TO SHAREHOLDERS IS PLANNED

CHILDREN'S APPAREL MAKER KLEINERT'S INC SAID ITS BOARD AUTHORIZED A
TAXFREE SPINOFF OF THE TEXTILE DIVISION SCOTT MILLS TO SHAREHOLDERS

THE COMPANY BASED IN PLYMOUTH MEETING PA HAS MANAGED SCOTT MILLS AS A
DISCONTINUED OPERATION SINCE FEBRUARY WHEN THE BOARD DECIDED TO DISPOSE OF
THE KNITTING DYEING AND FINISHING BUSINESS IN GASTONIA NC TO FOCUS
EXCLUSIVELY ON ITS APPAREL BUSINESS

KLEINERT'S 1993 REVENUE IS PROJECTED TO BE ABOUT 70 MILLION AND SCOTT
MILLS WOULD REPRESENT ABOUT 17 MILLION OF THAT THE COMPANY SAID IT WOULD
INCUR A SMALL LOSS FOR THE YEAR MAINLY DUE TO RECENT MOVING AND
REORGANIZATION CHARGES KLEINERT'S SAID THE LOSS ISN'T MATERIAL TO THE
SPINOFF WHICH COULD OCCUR LATE THIS YEAR OR EARLY IN 1994

KLEINERT'S INC PROJECTS 1993 REVENUE TO BE ABOUT 70 MILLION NOT INCLUDING
ITS SCOTT MILLS TEXTILE BUSINESS WHICH IS BEING SPUN OFF TO SHAREHOLDERS
AN ARTICLE TUESDAY ERRONEOUSLY SAID THE 70 MILLION FIGURE INCLUDED SCOTT
MILLS THE ARTICLE ALSO DIDN'T MAKE IT CLEAR THAT SCOTT MILLS NOT THE
PARENT IS EXPECTED TO HAVE A SMALL LOSS FOR THE YEAR 9307130067 930713
BUSINESS BRIEF FANNIE MAE MORTGAGE PURCHASER REPORTS INCREASE IN
2NDPERIOD PROFIT

THE FEDERAL NATIONAL MORTGAGE ASSOCIATION FUELED IN PART BY STRONG GROWTH
IN ITS MORTGAGE PORTFOLIO SAID ITS PROFIT ROSE 141 IN THE SECOND QUARTER

NET INCOME FOR THE WASHINGTON DC ASSOCIATION ROSE TO 4588 MILLION OR
167 A SHARE FROM 402 MILLION OR 147 A SHARE A YEAR AGO A RELIABLE
WALL STREET PERFORMER FANNIE MAE'S RESULTS WERE AGAIN IN LINE WITH
ANALYSTS' EXPECTATIONS ITS STOCK FELL 1875 TO 82625 IN NEW YORK STOCK
EXCHANGE TRADING YESTERDAY

FANNIE MAE PURCHASES MORTGAGES FOR ITS PORTFOLIO AND ALSO TO PACKAGE FOR
RESALE AS SECURITIES FANNIE SAID ITS NET INTEREST INCOME ON THE LOANS IT
KEEPS FOR INVESTMENT ROSE 219 TO 6321 MILLION FROM 5182 MILLION A YEAR
EARLIER ITS NET MORTGAGE PORTFOLIO WAS 170 BILLION AT THE END OF THE
SECOND QUARTER UP 214 FROM 140 BILLION A YEAR EARLIER

THE COMPANY HAS BEEN BUYING MORE MORTGAGES AMID A RENEWED BOOM IN
REFINANCINGS THEREBY OFFSETTING DECLINES IN PROFIT MARGINS FROM AN
INCREASED PREPAYMENT OF HIGHERYIELDING LOANS 9307130066 930713 WHO'S
NEWS PRIMERICA CORP

PRIMERICA CORP NEW YORK SMITH BARNEY HARRIS UPHAM & CO THE
BROKERAGE AND INVESTMENT BANKING UNIT OF THIS FINANCIAL SERVICES COMPANY
NAMED TWO EXECUTIVES VICE CHAIRMEN STEVEN D BLACK 41 YEARS OLD HEAD OF
THE CAPITAL MARKETS DIVISION AND ROBERT DRUSKIN 46 CHIEF ADMINISTRATIVE
OFFICER BOTH ARE DIRECTORS AND MEMBERS OF THE FIRM'S EXECUTIVE COMMITTEE
THE APPOINTMENTS RAISE THE NUMBER OF VICE CHAIRMEN TO SIX 9307130065
930713 BUSINESS BRIEF ALLIEDSIGNAL INC AUTO BRANCH COMBINES UNITS 
TO PRODUCE BRAKING SYSTEMS

ALLIEDSIGNAL AUTOMOTIVE SOUTHFIELD MICH A UNIT OF ALLIEDSIGNAL INC
MORRISTOWN NJ SAID IT COMBINED ITS GLOBAL AUTOMOTIVE BRAKE AND FRICTION
MATERIALS BUSINESSES INTO A NEW UNIT ALLIEDSIGNAL BRAKING SYSTEMS

THE TWO UNITS HAD 1992 SALES OF 24 BILLION COMPRISING ABOUT 20 OF
ALLIEDSIGNAL'S SALES A COMPANY SPOKESMAN SAID THE UNITS MAKE BRAKING PARTS
AND MATERIALS SUCH AS BRAKE PADS AND LININGS WHICH ARE SOLD TO AUTOMOBILE
MAKERS THE SPOKESMAN SAID THE COMPANY DECIDED TO MERGE THE BUSINESSES IN
RESPONSE TO A TREND IN THE AUTO INDUSTRY TO BUY ENTIRE BRAKING SYSTEMS FROM
ONE MAKER RATHER THAN BUYING COMPONENTS SEPARATELY

THE COMPANY NAMED STEPHEN RABINOWITZ 50 YEARS OLD PRESIDENT OF THE NEW
UNIT DR RABINOWITZ SERVED AS VICE PRESIDENT AND GROUP EXECUTIVE OF THE
FRICTION MATERIALS BUSINESS THE NEW UNIT WILL BE HEADQUARTERED IN DRANCY
FRANCE ALLIEDSIGNAL SAID THIS IS THE FIRST TIME ONE OF ITS GLOBAL UNITS
WILL BE BASED OUTSIDE THE US 9307130064 930713 WHO'S NEWS GOODY'S
FAMILY CLOTHING INC

GOODY'S FAMILY CLOTHING INC KNOXVILLE TENN JOHN THOMPSON WAS NAMED
TO THE NEW POSITIONS OF EXECUTIVE VICE PRESIDENT FOR BUSINESS SYSTEMS AND
LOGISTICS AND CHIEF INFORMATION OFFICER AT THIS APPAREL RETAILER MR
THOMPSON AGE 41 WAS VICE PRESIDENT BUSINESS SYSTEMS FOR LEE APPAREL IN
MERRIAM KAN 9307130063 930713 BUSINESS BRIEF DEP CORP TWO BRANDS
TO BE ACQUIRED FOR A TOTAL OF 45 MILLION

DEP CORP A LOS ANGELESBASED MAKER OF PERSONALCARE PRODUCTS SAID IT
AGREED TO ACQUIRE FOR 45 MILLION TWO SHAMPOO AND CONDITIONER BRANDS FROM
SC JOHNSON & SON INC

THE TRANSITION WOULD INCREASE DEP'S ANNUAL SALES BY MORE THAN 50 DEP SAID
IT ADDED THAT THE TWO BRANDS AGREE AND HALSA TOGETHER GENERATE ANNUAL
SALES OF ABOUT 65 MILLION FOR SC JOHNSON A CLOSELY HELD COMPANY BASED
IN RACINE WIS DEP REPORTED SALES OF 1203 MILLION FOR THE YEAR ENDED JULY
31 1992

ROBERT BERGLASS CHAIRMAN AND PRESIDENT OF DEP SAID THE ACQUISITION
PROVIDES SIGNIFICANT  SYNERGIES

COMPLETION OF THE ACQUISITION WHICH IS SUBJECT TO FINANCING IS EXPECTED
EARLY NEXT MONTH DEP SAID WE HAVE REACHED AN AGREEMENT IN PRINCIPLE WITH
THE LEAD BANK A UNIT OF CITICORP NEW YORK A DEP OFFICER ADDED
9307130062 930713 WHO'S NEWS BIDERMANN INDUSTRIES CORP

BIDERMANN INDUSTRIES CORP NEW YORK MARY ALICE KELLY 35 YEARS OLD WAS
NAMED EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING FOR ARROW SHIRT CO
THE LARGEST DIVISION OF CLOSELY HELD BIDERMANN'S CLUETT PEABODY & CO
SUBSIDIARY SHE SUCCEEDS DAVID CONDO WHO LEFT THE COMPANY MS KELLY
PREVIOUSLY WAS PRESIDENT OF WARNACO GROUP INC'S HATHAWAY DIVISION IN
ADDITION JOHN MULLER 51 WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE
PRESIDENT OF BIDERMANN'S DESIGNER MENSWEAR GROUP WHICH INCLUDES THE YVES
SAINT LAURENT AND BILL ROBINSON LABELS 9307130061 930713 A BERMUDA
REINSURER MID OCEAN LTD PLANS INITIAL PUBLIC OFFERING

NEW YORK MID OCEAN LTD A BERMUDABASED REINSURER PLANS TO SELL SHARES
TO THE PUBLIC IN AN INITIAL PUBLIC OFFERING THAT WOULD INCREASE THE VALUE OF
ITS ORIGINAL INVESTORS' STAKE BY MORE THAN 40 IN JUST SIX MONTHS

ACCORDING TO A PRELIMINARY PROSPECTUS RELEASED LATE LAST WEEK THE SALE OF
75 MILLION SHARES IN AN INITIAL PUBLIC OFFERING AND AN ADDITIONAL 25
MILLION SHARES TO ONE OF THE INITIAL INVESTORS IS EXPECTED TO RAISE 220
MILLION

THE COMPANY WAS FORMED LAST NOVEMBER BY JP MORGAN & CO AND MARSH &
MCLENNAN RISK CAPITAL CORP WHICH WERE PART OF AN INVESTOR GROUP THAT
INITIALLY CAPITALIZED IT WITH 359 MILLION ASSUMING A PERSHARE OFFERING
PRICE OF 2350 THE STAKE WOULD HAVE A VALUE OF 520 MILLION REPRESENTING
A 45 PAPER GAIN ON THEIR ORIGINAL INVESTMENT

MID OCEAN WHICH IS GOING PUBLIC SOONER THAN EXPECTED IS TAKING ADVANTAGE
OF THE DEMAND FOR SHARES OF PROPERTY AND CASUALTY REINSURERS WHICH
ESSENTIALLY PROVIDE INSURANCE FOR INSURANCE COMPANIES WITH REINSURERS
WITHDRAWING FROM THE MARKET INVESTORS HAVE BID UP THEIR SHARES ON HOPES
THAT THE LACK OF SUPPLY WILL CAUSE PREMIUMS TO RISE JP MORGAN DECLINED
COMMENT

IN ADDITION TO THE 75MILLIONSHARE SALE MID OCEAN IS SELLING 25 MILLION
SHARES TO EXEL LTD THE COMPANY'S LARGEST SHAREHOLDER PROCEEDS OF THE
SALES WILL BE USED TO STRENGTHEN THE COMPANY'S CAPITAL BASE WHICH WOULD
TOTAL AROUND 612 MILLION AFTER THE OFFERINGS FOR THE SIX MONTHS ENDED
APRIL 30 THE COMPANY HAD WRITTEN 197 MILLION IN NET PREMIUMS THE 10
MILLION NEW SHARES WILL BRING THE COMPANY'S TOTAL NUMBER OF SHARES
OUTSTANDING TO 321 MILLION

JP MORGAN SECURITIES THE INVESTMENT BANKING ARM OF JP MORGAN IS THE
LEAD MANAGER OF THE EQUITY OFFERING 9307130060 930713 BUSINESS BRIEF 
COMPTRONIX CORP FORMER OFFICER TO GIVE UP STOCK TO SETTLE HOLDER SUIT

THE FORMER CHIEF OPERATING OFFICER OF COMPTRONIX CORP GUNTERSVILLE ALA
AGREED TO GIVE UP STOCK VALUED AT ABOUT 18 MILLION TO SETTLE A
CLASSACTION SHAREHOLDER LAWSUIT ACCORDING TO AN ATTORNEY REPRESENTING THE
SHAREHOLDERS

THE AGREEMENT REACHED FRIDAY REQUIRES THAT ALLEN SHIFFLETT WHO WAS
DISMISSED IN FEBRUARY FOLLOWING DISCLOSURES OF IMPROPER ACCOUNTING
PRACTICES RELINQUISH 320000 SHARES IN THE ELECTRONICS CONCERN THE STOCK
WILL BE PUT INTO AN ESCROW ACCOUNT THE SHAREHOLDERS MAY SELL THE SHARES
ACCORDING TO DAVID GUIN THE ATTORNEY FOR THE SHAREHOLDERS

MR SHIFFLETT COULDN'T BE REACHED FOR COMMENT

WILLIAM HEBDING COMPTRONIX'S FORMER CHAIRMAN AND CHIEF EXECUTIVE AGREED
JULY 2 TO GIVE UP 412500 SHARES OF STOCK WHICH AT THAT TIME WAS VALUED AT
ABOUT 22 MILLION PAUL MEDLIN COMPTRONIX'S FORMER TREASURER AND
CONTROLLER AGREED IN FEBRUARY TO PAY THE STOCKHOLDERS 100000
9307130059 930713 VOICE OF DEMOCRACY IS LOUD AND CLEAR ON STREETS OF
JAPAN  VANS BARGES AND EVEN BICYCLES CARRY SPEAKERS THAT BLARE 
THE NAMES OF CANDIDATES  BY QUENTIN HARDY AND YUMIKO ONO STAFF
REPORTERS OF THE WALL STREET JOURNAL

TOKYO AS THE SOUND TRUCK ROLLS INTO THE SLEEPING CITY NEIGHBORHOOD A
BELLOW BLASTS AWAY THE MORNING CALM

HELLO EVERYONE HELLO EVERYONE THE HUMBLE MIDORI OTA MIDORI OTA VOTE FOR
MIDORI OTA BOOMS THE VOICE BEDSIDE CLOCKS READ 803 AM WE BEG FOR YOUR
SUPPORT OTA OTA MIDORI OTA

IN JAPAN IT IS TIME TO PLUG YOUR EARS TAPE THE WINDOWS AND CHAIN THE DOG
HUNDREDS OF VANS TRUCKS AND PASSENGER CARS EACH MOUNTED WITH HUGE
LOUDSPEAKERS ARE ROVING THE LAND IN PRAISE OF ONE OR ANOTHER OF THE 955
CANDIDATES FOR THE JULY 18 NATIONAL ELECTION

INTRUSIVE OBSTREPEROUS YOU BET IF ONE OF THE BIG MACHINES PASSES YOUR
HOUSE IT PRACTICALLY PEELS THE PAINT JAPAN'S POLITICAL TURMOIL HAS BROUGHT
OUT MORE CANDIDATES THAN USUAL FOR THIS ELECTION AND THAT MEANS MORE SOUND
TRUCKS LOWBUDGET CANDIDATES ARE PENETRATING NARROW ALLEYS ON SOUND
BICYCLES AND SOUND BARGES PLY TOKYO'S CANALS

THE RACKET FROM JAPAN'S WELLAMPLIFIED CANDIDATES IS ALL TOO MUCH FOR SUSUMU
OGURA WHO STANDS OUTSIDE KICHIJOJI STATION HOLDING A SIGN ADVERTISING A
KARAOKE HALL HALFWAY THROUGH HIS SHIFT HE HAS ALREADY ENDURED HIGHDECIBEL
PLEAS FROM A DOZEN SPEAKERS IF YOU'RE JUST PASSING THROUGH YOU CAN STAND
IT HE SAYS GRIMACING BUT THINK WHAT IT'S LIKE FOR ME THEY'VE ONLY BEEN
TALKING FOR 45 MINUTES AND MY EARS ARE RINGING

FOR THE JAPANESE POLITICIAN THERE ISN'T MUCH ALTERNATIVE TO USING A SOUND
TRUCK IN THE INTEREST OF FAIRNESS EACH CANDIDATE FOR THE DIET OR
PARLIAMENT IS ALLOWED JUST ONE PAID TV SPOT TWO RADIO COMMERCIALS AND A
MODEST NEWSPAPER AD DOORTODOOR CANVASSING IS FORBIDDEN POSTERS AND
FLIERS ARE OK THOUGH SO ARE THE SOUNDMOBILES AND THERE IS NO CAP ON THE
CLAMOR

THE CRUCIAL THING FOR A POLITICIAN IS TO MAKE PEOPLE REMEMBER HIS NAME
SINCE AS MANY AS A DOZEN CANDIDATES SOMETIMES RUN IN A SINGLE DISTRICT THIS
LEADS TO A LOT OF REPETITION REPETITION REPETITION FROM THE TRUCKS

I AM TAKASHI KOSUGI THUNDERS TAKASHI KOSUGI A 57YEAROLD TOKYO
INCUMBENT WHO HAS PARKED HIS SOUND VAN OUTSIDE A BUSY RAILWAY STATION
TAKASHI KOSUGI TAKASHI KOSUGI TACKLING POLITICAL REFORM WITH ALL HIS
MIGHT IS KOSUGI TAKASHI KOSUGI TAKASHI KOSUGI HE REPEATS HIS MESSAGE
NONSTOP FOR HALF AN HOUR AS HUNDREDS OF COMMUTERS HURRY PAST

I NEED TO PROMOTE MY PERSONALITY MR KOSUGI SAYS LATER IN AN INTERVIEW
OVER A BREAKFAST OF A HAMBURGER AND FRENCH FRIES

SOME TRUCKS PRODUCE MORE SHRIEKING THAN SPEAKING THE POINT IS TO PROJECT
SINCERITY AND IN JAPANESE POLITICS FEW THINGS ARE MORE SINCERE THAN
PUTTING YOUR OR A SURROGATE'S ALL INTO A SHOUT PLAYING A TAPED
MESSAGE THOUGH NOT OFFICIALLY BANNED IS CONSIDERED CHEATING

I REALLY KILLED MY VOICE AND I'M JUST GETTING STARTED SAYS MASASHI
SAITO WARMUP ANNOUNCER FOR INDEPENDENT CANDIDATE ATSUSHI YAMAMOTO THEN HE
SMILES MAYBE IF MY VOICE GETS REALLY HOARSE WE'LL GET THE SYMPATHY VOTE

CANDIDATE YAMAMOTO'S STAFF ALSO MAKES THE ROUNDS ATOP BICYCLES MOUNTED WITH
LARGE BULLHORNS FRONT AND REAR WE'RE REACHING EVERYONE WITH THESE SAYS
ONE WORKER PATTING HIS BIKE'S BRIGHT RED FRAME WE GET DOWN ALL THE LITTLE
SIDE STREETS THE TRUCKS CAN'T ENTER

THE GROUP OF SEVEN SUMMIT IN TOKYO LAST WEEK ENCOURAGED EXTREMISTS TO TURN
UP THE POLITICAL DISSONANCE HIROYOSHI FUDEYASU HEAD OF A RIGHTIST GROUP
ADJUSTS HIS RISINGSUN HEADBAND SINCE HIS GROUP ISN'T A REGISTERED PARTY
HE SAYS WE'RE NOT ALLOWED TO MAKE ANY POLITICAL STATEMENTS DURING
ELECTIONS HE RAISES HIS BULLHORN SO TODAY WE'RE HAVING A RELIGIOUS
SERVICE

HIS CHURCH IS TOKYO'S BUSIEST SHOPPING AREA DURING A WEEKDAY LUNCH HOUR
HE PRAYS THAT THE G7 WITHHOLD AID TO RUSSIA TO NO AVAIL RUSSIA WAS
GIVEN 3 BILLION IN HELP HIS BULLHORN ACCORDING TO ITS MAKER HAS A
HALFMILE RANGE

ALL THIS IN A CULTURE THAT VALUES PEACE AND QUIET BLAME THE NATION'S AURAL
HEX ON ITS POLITICAL HISTORY IN THE FIRST NATIONAL ELECTIONS HELD IN 1890
JUST 11 OF THE POPULATION WAS ELIGIBLE TO VOTE THE RIGHT GUY COULD GET
ELECTED BY MAKING A FEW PERSONAL VISITS AROUND THE POSTFEUDAL DOMAIN BY
1925 THOUGH ELIGIBLE VOTERS MADE UP 201 OF THE POPULATION WOMEN'S
SUFFRAGE IN 1945 TURNED ALL THE ADULTS INTO POTENTIAL VOTERS BUT BECAUSE
OF THE CAMPAIGNING RESTRICTIONS THE NEED TO RELATE PERSONALLY TO EACH VOTER
REMAINED

WE GOT SOUND TRUCKS ABOUT THE SAME TIME WE GOT AUTOMOBILES EARLY IN THE
CENTURY SAYS IKUO KABASHIMA PROFESSOR OF POLITICS AT TSUKUBA UNIVERSITY

JAPANESE LAW USUALLY PROHIBITS ANY DIN OF MORE THAN 85 DECIBELS SLIGHTLY
QUIETER THAN AN ELEVATED TRAIN ROARING BY BUT WHEN POLITICIANS MADE THAT
LAW THEY EXEMPTED THEMSELVES DURING ELECTION CAMPAIGNS SOUND TRUCKS CAN
CRANK IT UP

VOTERS ENJOY THE HUBBUB MR KOSUGI THE CANDIDATE FOR PARLIAMENT ARGUES
THE JAPANESE LIKE TO FEEL CLOSE TO THE CANDIDATE HE SAYS INDEED DURING
A MORNING CRUISE THROUGH HIS CONSTITUENCY ONE APRONCLAD WOMAN DOES RUSH
OUT TO GREET MR KOSUGI'S TRUCK BUT SEVERAL COMMUTERS ALSO SNARL AT MR
KOSUGI'S FEARSOME SPEAKERS

BUSH WARBLERS ARE SUPPOSED TO EASE THE PAIN THESE WOMEN MOSTLY IN
THEIR 20S AND HIRED FROM NARRATIONMODEL AGENCIES RIDE IN THE TRUCKS TO
SHOUT OUT THE CANDIDATE'S NAME THEY ARE VALUED FOR HAVING THE HONEYED
HIGHPITCHED FEMALE VOICES THAT MANY JAPANESE LOVE

IF THE VOICE IS TOO LOW IT DOESN'T TRAVEL FAR ENOUGH SAYS TAKAKO
IWABUCHI A 15YEAR WARBLING VETERAN FOR MR KOSUGI I RAISE MINE AT LEAST
ONE OCTAVE HIGHER

INSIDE THE VAN THE WARBLERS WATCH LIKE HAWKS FOR SHY SUPPORTERS WAVING FROM
THEIR APARTMENTS THE VOTERS MUST BE ANSWERED BY IMMEDIATE LOUDSPOKEN
THANKS WHEN THE TRUCK BLOCKS THE ROAD MR KOSUGI HIMSELF THUNDERS AN
APOLOGY TO THE INCONVENIENCED DRIVERS AND REMINDS THEM OF HIS NAME

A PITCH FOR EVERY PREDICAMENT THE TRUCK TURNS INTO A PLACID TREELINED
LANE WE ARE BOTHERING YOU RESIDENTS OF THIS QUIET NEIGHBORHOOD THE
SPEAKER SCREECHES TO THE SURPRISED DENIZENS PLEASE EXCUSE US BECAUSE IT IS
CAMPAIGNING TIME TAKASHI KOSUGI TAKASHI KOSUGI PLEASE VOTE FOR
TAKASHI KOSUGI 9307130058 930713 FINANCING BUSINESS GENERAL
NUTRITION COS

GENERAL NUTRITION COS PITTSBURGH SAID IT FILED AN AMENDMENT TO A
REGISTRATION STATEMENT FOR ITS COMMON STOCK OFFERING INCREASING THE NUMBER
OF SHARES TO BE SOLD BY SELLING SHAREHOLDERS TO ONE MILLION FROM 400000
THE SHARES WILL BE SOLD BY SEVERAL SHAREHOLDERS INCLUDING THOMAS W LEE
EQUITY PARTNERS LP MLLEE ACQUISITION FUND LP AND OTHER AFFILIATES OF
THOMAS H LEE CO AND FIRST CHICAGO CORP THE OFFERING NOW INCLUDES
2350000 COMMON SHARES INCLUDING 1350000 TO BE OFFERED BY THE COMPANY
AND ONE MILLION BY SELLING SHAREHOLDERS GENERAL NUTRITION A RETAILER OF
VITAMIN MINERAL AND SPORTS NUTRITION SUPPLEMENTS INTENDS TO USE THE
PROCEEDS TO REDEEM 35 MILLION PRINCIPAL AMOUNT OF ITS SUBSIDIARY'S 11 3/8
SENIOR SUBORDINATED NOTES DUE 2000 AND TO PAY DOWN ITS BANK TERM DEBT OR BUY
BACK ADDITIONAL SENIOR SUBORDINATED NOTES 9307130056 930713 CHINATEX
AMERICA INC EXECUTIVE CONVICTED IN PROBE OF IMPORTS

NEW YORK THE US CUSTOMS SERVICE SAID CHINATEX AMERICA INC AND ITS
KNITWEAR DIRECTOR GU SHI QIANG WERE CONVICTED IN FEDERAL COURT OF
FRAUDULENTLY IMPORTING CHINESE TEXTILES AND APPAREL

IT WAS THE FIRST CRIMINAL PROSECUTION RESULTING FROM AN ONGOING
INVESTIGATION BY THE US ATTORNEY IN MANHATTAN OFFICIALS SAID

THE PROBE FOCUSES ON FRAUDULENT PRACTICES BY TEXTILE IMPORTERS SUCH AS
FALSELY CLAIMING THAT APPAREL IS FROM A COUNTRY WITH LOWER TARIFF
REQUIREMENTS A SPOKESPERSON FOR THE US ATTORNEY'S OFFICE SAID TEXTILE
MAKERS FROM OTHER COUNTRIES ALSO ARE UNDER INVESTIGATION

CHINATEX A UNIT OF CHINA TEXTILE IMPORT & EXPORT CORP OF BEIJING AND MR
GU WERE CONVICTED OF CONSPIRACY SMUGGLING AND MAKING FALSE STATEMENTS TO A
US AGENCY MR GU IS FREE ON BAIL PENDING SENTENCING THE US ATTORNEY'S
OFFICE SAID

CHINATEX FACES FINES OF 2 MILLION BUT THE US ATTORNEY'S SPOKESPERSON
SAID FEDERAL PROSECUTORS ARE UNCERTAIN ABOUT HOW THEY WILL COLLECT IT SINCE
THE PARENT COMPANY IS IN BEIJING MR GU FACES UP TO 17 YEARS IN PRISON AND
1 MILLION IN FINES SENTENCING IS SET FOR OCT 18

BENNY CHANG AN EMPLOYEE OF OSLO TRADING CO WAS ACQUITTED OF A SINGLE
CONSPIRACY COUNT AGAINST HIM IN A FEDERAL IMPORT FRAUD CASE IN WHICH
CHINATEX AMERICA INC AND ONE OF ITS OFFICIALS WERE CONVICTED ON SEVERAL
COUNTS AN ARTICLE YESTERDAY ABOUT THE CHINATEX CASE DIDN'T NOTE MR CHANG'S
ACQUITTAL 9307130055 930713 WHO'S NEWS ANOTHER EXCENTEL OFFICIAL TO
QUIT NEW OWNER SPRINT

ANOTHER FORMER HIGHLEVEL CENTEL CORP OFFICIAL HAS DECIDED HE'D RATHER NOT
LIVE IN KANSAS CITY MO AND WORK FOR SPRINT CORP

J STEPHEN VANDERWOUDE 49 YEARS OLD THE FORMER PRESIDENT OF CENTEL BEFORE
IT MERGED WITH SPRINT IN MARCH SAID HE WOULD LEAVE SPRINT ON AUG 1 AFTER
THE COMPANY REJECTED HIS REQUEST TO CONTINUE RUNNING ITS LOCAL TELEPHONE
OPERATIONS WHILE HE LIVES ON HIS HORSE FARM IN SOUTHERN PINES NC MR
VANDERWOUDE IS NOW PRESIDENT OF SPRINT'S LOCAL TELECOMMUNICATIONS DIVISION

SPRINT CHAIRMAN WILLIAM T ESREY WANTED A TEAM MR VANDERWOUDE SAID AND
MR ESREY INSISTED THAT MR VANDERWOUDE LIVE NEAR THE COMPANY'S SUBURBAN
KANSAS CITY HEADQUARTERS HE SAID

MR ESREY SAID HE WAS VERY DISAPPOINTED BY MR VANDERWOUDE'S EXIT

MR VANDERWOUDE'S RESIGNATION FOLLOWS THE EXIT LAST MONTH OF CENTEL'S FORMER
CHAIRMAN JOHN P FRAZEE JR MR FRAZEE EARNESTLY PUSHED FOR CENTEL'S MERGER
WITH SPRINT ONLY TO QUIT A FEW MONTHS LATER TO SPEND MORE TIME ON HIS RANCH
IN TALLAHASSEE FLA

MR VANDERWOUDE IS SUCCEEDED BY 25YEAR SPRINT VETERAN D WAYNE PETERSON
SPRINT SAID MR PETERSON WHO HAD BEEN RUNNING SPRINT'S UNITED TELEPHONE
MIDATLANTIC OPERATION FOR FOUR MONTHS USED TO BE THE PRESIDENT OF SPRINT'S
CAROLINA TELEPHONE & TELEGRAPH CO 9307130054 930713 MARKETING BRIEF 
SONY CORP SONY MUSIC IS RESTRUCTURED TO FORM CHILDREN'S LABEL

SONY CORP'S SONY MUSIC UNIT RESTRUCTURED ITS CHILDREN'S AND FAMILY VIDEO
AND AUDIO OPERATIONS UNDER THE SONY WONDER BANNER

SONY WONDER EMPHASIZING CHILDREN'S VIDEO AND AUDIO CASSETTES AND COMPACT
DISKS PLANS TO RELEASE MORE THAN 60 VIDEOS AND AUDIO TITLES ANNUALLY TO BE
DISTRIBUTED THROUGH SONY MUSIC BY EPIC RECORDS SONY WONDER WILL BE BASED IN
NEW YORK BUT TOP EXECUTIVES WILL ALSO BE ON THE WEST COAST

AS A RESULT OF THE RESTRUCTURING SONY KIDS' A SPECIALTY MUSIC LABEL WILL
BE INCORPORATED INTO SONY WONDER IN MAY SONY CORP ANNOUNCED AN ALLIANCE
WITH VIACOM INC'S NICKELODEON CABLE CHANNEL TO MANUFACTURE AND DISTRIBUTE
IN THE US HOME VIDEO AND AUDIO PRODUCTS SONY WONDER WILL CONTINUE TO SEEK
OTHER STRATEGIC ALLIANCES AND COPRODUCTION ARRANGEMENTS WITH SUPPLIERS AS
WELL AS DEVELOP AND PRODUCE ORIGINAL PROGRAMMING 9307130053 930713
TECHNOLOGY MOTOROLA'S 2NDPERIOD NET SOARED 57 AMID CONTINUED
WORLDWIDE DEMAND  BY JIM CARLTON STAFF REPORTER OF THE WALL
STREET JOURNAL

MOTOROLA INC'S SECONDQUARTER EARNINGS SOARED 57 AS WORLDWIDE DEMAND
CONTINUED TO SURGE FOR ITS SEMICONDUCTORS CELLULAR PHONES AND PAGERS

THE COMPANY ALSO REPORTED A 58 RISE IN ORDERS FOR THE DIVISION THAT MAKES
CELLULAR PHONES AND A 30 INCREASE IN CHIP ORDERS INDICATING EARNINGS WILL
CONTINUE TO JUMP MOTOROLA LIKE A NUMBER OF OTHER US HIGHTECHNOLOGY
COMPANIES IS ON A ROLL BECAUSE ITS MASTERY OF SOFTWARE AND CHIP TECHNOLOGY
HAS ALLOWED IT TO QUICKLY DESIGN INNOVATIVE PRODUCTS AND DRIVE DOWN THE COST
OF PRODUCTION

THE SCHAUMBURG ILL COMPANY SAID EARNINGS IN THE QUARTER ROSE TO 224
MILLION OR 83 CENTS A SHARE FROM 143 MILLION OR 54 CENTS A SHARE IN THE
YEAREARLIER QUARTER SALES INCREASED 25 TO 394 BILLION FROM 314
BILLION

THE RESULTS WHICH WERE RELEASED AFTER THE CLOSE OF TRADING SLIGHTLY
EXCEEDED ANALYSTS' MEDIAN EXPECTATIONS FOR PROFIT OF 81 CENTS A SHARE
MOTOROLA'S STOCK ROSE 1125 TO 86875 IN NEW YORK STOCK EXCHANGE TRADING

IN THE SIX MONTHS MOTOROLA'S PROFIT NEARLY DOUBLED TO 428 MILLION OR
153 A SHARE FROM 268 MILLION OR 99 CENTS BEFORE AN ACCOUNTING CHANGE
AFTER THE ACCOUNTING CHANGE MOTOROLA HAD NET INCOME OF 145 MILLION OR 55
CENTS A SHARE SALES REACHED 756 BILLION UP FROM 62 BILLION THE YEAR
EARLIER

SIGNIFICANTLY PROFIT MARGINS CONTINUED TO WIDEN AS MOTOROLA TOOK ADVANTAGE
OF BOOMING DEMAND FOR ITS PRODUCTS PARTICULARLY LUCRATIVE SEMICONDUCTOR
SEGMENTS MOTOROLA OFFICIALS SAID MARGINS ALSO REFLECT PRODUCTIVITY
IMPROVEMENTS IN THE SECOND QUARTER NET MARGIN ON SALES JUMPED NEARLY 25
TO 57 COMPARED WITH A MARGIN OF 46 A YEAR EARLIER

SALES WERE STRONG IN MOST PRODUCT LINES AND MOST REGIONS EVEN IN EUROPE
WHERE THE ECONOMY REMAINS SLOW SAID GEORGE FISHER CHAIRMAN AND CHIEF
EXECUTIVE OFFICER SALES OF GENERAL SYSTEMS PRODUCTS MOSTLY CELLULAR
PHONES JUMPED 40 WHILE CHIP SALES ROSE 28 AND COMMUNICATIONS PRODUCTS
SUCH AS PAGERS WERE UP 23

CELLULAR SALES ARE RUNNING STRONG IN THE US AS WELL AS IN OTHER
COUNTRIES TOLGA VURAL DIRECTOR OF CONSULTING FOR PYRAMID RESEARCH IN
CAMBRIDGE MASS SAID THAT IN CHINA FOR INSTANCE MOTOROLA SET UP A
CELLULAR PHONE MANUFACTURING PLANT TWO YEARS AGO THAT WAS INITIALLY INTENDED
FOR EXPORTS TO OTHER COUNTRIES BUT MR VURAL SAID CHINESE CELLULAR DEMAND
WAS SO HIGH THAT THE PHONES WERE PRODUCED JUST FOR THAT DOMESTIC
CONSUMPTION NOW THEY ARE EXPANDING TO INCREASE PRODUCTION FOR THE CHINESE
MARKET MR VOLGA SAID

MOTOROLA RECENTLY SIGNED CONTRACTS TO SET UP CELLULAR SYSTEMS IN SUCH PLACES
AS QATAR AND YEMEN IN THE MIDDLE EAST AND GAMBIA AND GABON IN AFRICA HE
ADDED MOTOROLA OFFICIALS SAY DEMAND ALSO IS STRONG IN INDONESIA EUROPE AND
JAPAN

CUSTOMERS ARE INVESTING IN SYSTEMS THAT MAKE THEM MORE PRODUCTIVE AND
ENABLE THEM TO ACCESS AND COMMUNICATE INFORMATION AT THEIR CONVENIENCE MR
FISHER SAID AS THESE BUSINESSES CONTINUE TO GROW WE REMAIN FULLY
COMMITTED TO OUR KEY INITIATIVES ON QUALITY IMPROVEMENT ONTIME DELIVERY
AND TOTAL CUSTOMER SATISFACTION 9307130052 930713 WHO'S NEWS NWNL
COS

NWNL COS MINNEAPOLIS CAROLYN H BALDWIN 44 YEARS OLD PRESIDENT OF
COCACOLA CO'S COCACOLA FINANCIAL CORP UNIT WAS ELECTED TO THE BOARD OF
THIS INSURANCE HOLDING COMPANY AND ITS NORTHWESTERN NATIONAL LIFE INSURANCE
CO UNIT INCREASING THE BOARD'S SIZE TO 16 MEMBERS 9307130051 930713
ECONOMY FLOODS FORCE SHUTDOWN OF FACTORIES IN MIDWEST  A WALL
STREET JOURNAL NEWS ROUNDUP

FLOODING IN THE MIDWEST CONTINUED TO PLAGUE MANUFACTURERS TRANSPORTERS AND
BUSINESSES AS WATER OVERFLOW FORCED PLANTS TO CLOSE IN ILLINOIS AND IOWA

BURLINGTON NORTHERN INC THE NATION'S LARGEST RAILROAD RAISED ESTIMATES OF
SHIPPING DELAYS TO AS MUCH AS FOUR DAYS ON LINES CONNECTING CHICAGO TO ST
LOUIS AND OMAHA NEB THE COMPANY HAD PREDICTED THAT WASHED OUT RAIL LINES
WOULD CAUSE DELAYS OF ONLY ONE OR TWODAYS

A SPOKESMAN SAID AN IBP INC BEEF OPERATION IN DENISON IOWA WAS CLOSED
BECAUSE OF MAJOR FLOODING PROBLEMS THAT DAMAGED ENGINES AND KILLED AT
LEAST FIVE CATTLE THE PLANT COULD BE SHUT FOR SEVERAL DAYS THE SPOKESMAN
SAID

IN IOWA WHERE IT HAS RAINED 37 OF THE PAST 41 DAYS FLOODING IN THE STATE
CAPITAL IDLED INSURANCE COMPANIES SUCH AS PRINCIPAL FINANCIAL GROUP AND
EQUITABLE OF IOWA COS AND MAGAZINE PUBLISHER MEREDITH CORP THE DES MOINES
REGISTER A GANNETT CO NEWSPAPER PUBLISHED AN EIGHTPAGE EDITION YESTERDAY
FROM MAKESHIFT QUARTERS IN A SUBURBAN HOLIDAY INN AFTER A POWER OUTAGE LEFT
ITS DOWNTOWN PLANT DARK

ELSEWHERE IN DES MOINES A CONAGRA INC MONFORT BEEF MEATPACKING PLANT
EMPLOYING 1400 PEOPLE WAS SHUT DOWN BECAUSE OF A LACK OF POTABLE WATER

IN NEIGHBORING ILLINOIS RAINS FLOODED A LOADING DOCK SERVING CONSOLIDATION
COAL CO'S REND LAKE AND BURNING STAR COAL MINES ALONG THE MISSISSIPPI
RIVER A SPOKESMAN SAID THE EFFECT WAS MINIMAL HOWEVER SINCE A
MINEWORKERS' STRIKE HAD ALREADY IDLED PRODUCTION 9307130050 930713
MARKETING & MEDIA NEW YORK POST LIVES AFTER UNIONS APPROVE CUTS OF
62 MILLION

NEW YORK THE NEW YORK POST LIVES

AFTER FAILING TO PUBLISH SINCE FRIDAY THE TABLOID NEWSPAPER GOT A NEW LEASE
ON LIFE WHEN ITS UNIONS AGREED TO GRANT POTENTIAL OWNER RUPERT MURDOCH 62
MILLION IN COST CUTS REPORTERS AND PRINTING TRADESPEOPLE RETURNED TO WORK
YESTERDAY AFTERNOON TO PREPARE AN EDITION FOR TODAY IT WOULD BE THE FIRST
SINCE MR MURDOCH CHAIRMAN OF MEDIA GIANT NEWS CORP LOCKED THE DOORS
FRIDAY AT THE POST'S BUILDING IN LOWER MANHATTAN

BUT MEMBERS OF THE NEWSPAPER GUILD WHICH REPRESENTS EMPLOYEES IN THE
PAPER'S NEWS ADVERTISING AND CIRCULATION DEPARTMENTS APPARENTLY WENT BACK
TO WORK WITHOUT AN AGREEMENT NEGOTIATIONS WITH THE GUILD REPORTEDLY HAD
BEEN HUNG UP ON MR MURDOCH'S REFUSAL TO HONOR SEVERANCE OBLIGATIONS AND HIS
DEMAND FOR THE RIGHT TO FIRE STAFF WE WILL CONTINUE TALKING WITH THE GUILD
TO RESOLVE THESE FINAL ISSUES SAID PATRICK PURCELL PRESIDENT AND CHIEF
EXECUTIVE OFFICER OF NEWS CORP'S NEWS AMERICA PUBLISHING INC

THE POST IS OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION THE
MANAGEMENT AGREEMENT UNDER WHICH NEWS CORP OPERATED THE POST THROUGH FRIDAY
WAS REINSTATED YESTERDAY MR PURCELL SAID HE SAID NEGOTIATIONS TO
PERMANENTLY TRANSFER THE PAPER TO NEWS CORP ARE CONTINUING

IT IS UNCLEAR WHETHER THE POST CAN OPERATE AT A PROFIT THE POST HAS SEEN
ITS ADVERTISING AND CIRCULATION DWINDLE IN RECENT YEARS IT ALSO FACES
STIFFENED COMPETITION FROM A REVITALIZED TABLOID COMPETITOR THE NEW YORK
DAILY NEWS OWNED BY REAL ESTATE DEVELOPER MORTIMER ZUCKERMAN 9307130049
930713 SEGA AND MARTIN MARIETTA TEAM UP FOR A WAR GAME

BETHESDA MD MARTIN MARIETTA CORP AND SEGA ENTERPRISES LTD OF JAPAN
SIGNED AN AGREEMENT UNDER WHICH SEGA WILL USE THE DEFENSE CONTRACTOR'S
TANKSIMULATION TECHNOLOGY IN AN ARCADE GAME

TERMS WEREN'T DISCLOSED THE DEAL FOLLOWS A 1992 TECHNOLOGYTRANSFER
JOINTDEVELOPMENT PROGRAM BETWEEN SEGA AND GENERAL ELECTRIC CO'S AEROSPACE
UNIT WHICH MARTIN MARIETTA ACQUIRED THIS YEAR

SPECIFICALLY THE NEW CONTRACT ALLOWS SEGA TO APPLY MARTIN MARIETTA'S
PHOTOGRAPHICSIMULATION TECHNOLOGY TO A NEW TANKBATTLE VIDEO GAME THE
MULTIPLEPLAYER GAME WILL FEATURE TANKS THAT BOTH DRIVE AND SHOOT IN A
LIFELIKE DISPLAY SAID JOHN LENYO MANAGER OF INTERNATIONAL MARKETING AT
MARTIN MARIETTA'S SIMULATION AND AUTOMATED SYSTEMS GROUP DAYTONA BEACH
FLA

MR LENYO SAID THAT WHILE THE GAME WON'T USE ACTUAL MILITARY SOFTWARE
MARTIN MARIETTA WILL ADAPT ITS UNDERSTANDING OF REALTIME SIMULATION TO
PRODUCE A GAME DISPLAY THAT IS MORE REALISTIC THAN OTHERS ON THE MARKET THE
TECHNOLOGY STEMS FROM THE COMPANY'S FLIGHT AND TANK SIMULATORS WHICH ARE
USED BY THE US AIR FORCE AND ARMY

TOKYOBASED SEGA WILL DISTRIBUTE THE GAME IN JAPAN FIRST WITH EUROPEAN AND
US DISTRIBUTION PENDING JAPANESE RESULTS THE GAME IS SCHEDULED TO HIT THE
MARKET IN JAPAN IN THE FOURTH QUARTER OF 1994 ACCORDING TO MR LENYO
9307130048 930713 VILLAGE FINANCIAL SERVICES MERGER

PORT CHESTER NY VILLAGE FINANCIAL SERVICES LTD SAID ITS SHAREHOLDERS
AND THE FEDERAL OFFICE OF THE COMPTROLLER OF THE CURRENCY APPROVED ITS
PROPOSED MERGER WITH FIRST FIDELITY BANCORP

VILLAGE FINANCIAL SAID ABOUT 75 OF ITS SHARES OUTSTANDING APPROVED THE
TRANSACTION THE MERGER PLAN CALLS FOR VILLAGE FINANCIAL HOLDERS TO RECEIVE
A TOTAL OF ABOUT 66 MILLION IN A COMBINATION OF CASH AND FIRST FIDELITY
SHARES THE SHARE CONVERSION FORMULA IS BASED ON THE AVERAGE FIRST FIDELITY
SHARE PRICE OVER A 20DAY TRADING PERIOD ENDING JULY 27

THE TRANSACTION REMAINS SUBJECT TO APPROVAL BY NEW YORK STATE'S BANKING
SUPERINTENDENT VILLAGE FINANCIAL SAID 9307130047 930713 MARKETING &
MEDIA GE'S NBC PROPOSES 3 NEW CABLE CHANNELS TO SYSTEM OPERATORS

NEW YORK NATIONAL BROADCASTING CO HAS PROPOSED CREATING THREE NEW CABLE
CHANNELS AS PART OF ITS NEGOTIATIONS WITH CABLE SYSTEM OPERATORS OVER
PAYMENT FOR USE OF THE SIGNALS OF NBC'S SEVEN BROADCAST STATIONS

THE PRIMARY CHANNEL WOULD BE DEVOTED TO NEWSTALK EVERYTHING FROM STRAIGHT
NEWS COVERAGE TO ANALYSIS MANONTHESTREET INTERVIEWS AND CALLIN DEBATE
THE SECOND CHANNEL WOULD BE A SPORTS NEWS SERVICE RUN IN CONJUNCTION WITH
NBC'S SPORTSCHANNEL JOINT VENTURE WITH LIBERTY MEDIA CORP AND CABLEVISION
SYSTEMS CORP THE THIRD CHANNEL WOULD BE A DOMESTIC VERSION OF NBC'S LATIN
AMERICAN SPANISHLANGUAGE NEWS SERVICE

CABLE SYSTEMS WHICH ARE HEARING ABOUT THE PLAN FROM A FOURPERSON NBC
DELEGATION WOULD BE ENCOURAGED TO TAKE ALL THREE CHANNELS AS A PACKAGE
PAYING A LOWER PER SUBSCRIBER FEE TO NBC THE MORE CHANNELS THEY TAKE
ACCORDING TO ONE EXECUTIVE FAMILIAR WITH THE PLAN NBC A UNIT OF GENERAL
ELECTRIC CO DEVELOPED THE PLAN AS A WAY TO OFFER CABLE SYSTEMS MORE VALUE
THAN A SINGLE CHANNEL WOULD GIVE AND TO ALLOW THEM TO MEET LOCAL NEEDS
ACCORDING TO ONE EXECUTIVE MANY CABLE OPERATORS PUT THE HIGHEST VALUE ON
NEWS AND INFORMATION SERVICES

CABLE OPERATORS WOULD GET ADVERTISING TIME TO SELL IN ALL THREE CHANNELS AS
PART OF THE DEAL IN ADDITION ANY NBC AFFILIATE STATIONS THAT WANTED TO
EXCHANGE THE USE OF THEIR SIGNALS FOR THE NEW CABLE CHANNELS WOULD GET AN
EQUITY STAKE IN THE NEWS/TALK CHANNEL

THE PROPOSAL WHICH WILL GO FORWARD ONLY IF THERE IS ENOUGH INTEREST IS ONE
OPTION THAT NBC IS GIVING CABLE SYSTEM OPERATORS AS PART OF RETRANSMISSION
CONSENT NEGOTIATIONS FOR USE OF BROADCAST STATION SIGNALS UNDER THE NEW
FEDERAL CABLE LAW BROADCAST STATIONS AND CABLE SYSTEMS HAVE UNTIL OCT 6 TO
COME UP WITH A MUTUALLY AGREED UPON PAYMENT FOR USE OF A BROADCAST STATION'S
SIGNAL

NBC IS ALSO OFFERING ANOTHER OPTION STRAIGHT CASH PAYMENT FOR ITS STATION
SIGNALS 9307130046 930713 UMW EXPANDING STRIKE EFFECT ON COAL PRICES
SEEN

WASHINGTON THE UNITED MINE WORKERS SAID IT WOULD EXPAND ITS SELECTIVE
STRIKE AS OF MIDNIGHT LAST NIGHT TO INCLUDE APPROXIMATELY 2000 NEW UNION
MEMBERS WHILE ANALYSTS SAID THE 10WEEKOLD STRIKE WAS SHOWING SIGNIFICANT
EFFECTS ON COAL PRICES

THE 10 NEWLY TARGETED MINES BELONG TO ALREADY STRUCK ARCH MINERAL CORP
HANSON PLC'S PEABODY HOLDING CO AND CONSOL ENERGY INC WHICH IS OWNED BY
GERMANY'S RHEINBRAUN AG AND DUPONT CO THE UMW CONTINUES TO HIT THESE
COMPANIES AS WELL AS ASHLAND COAL CO ZIEGLER COAL HOLDING CO AND
ROCHESTER & PITTSBURGH COAL CO BRINGING THE TOTAL NUMBER OF STRIKERS TO
16000

THE UNION SAYS IT IS STRIKING OVER JOB SECURITY AT THESE COMPANIES WHICH
ARE MEMBERS OF THE BITUMINOUS COAL OPERATORS ASSOCIATION

SOME ANALYSTS SAID THE STRIKE BEGUN MAY 10 WAS RAISING COAL PRICES WE ARE
SEEING A PRICE INCREASE OF ABOUT 10 TO 15 WHICH IS FAIRLY SIGNIFICANT AS
FAR AS COAL GOES SAYS RAFAEL A VILLAGRAN OF SHEARSON LEHMAN BROTHERS NEW
YORK 9307130045 930713 BUSINESS BRIEF AZTAR CORP FIRM WINS VOTE IN
MISSOURI FOR RIVERBOAT CASINO LICENSE

AZTAR CORP PHOENIX SAID THE CITY COUNCIL OF CARUTHERSVILLE MO VOTED TO
RECOMMEND THE COMPANY FOR A STATE LICENSE TO OPERATE A 30 MILLION RIVERBOAT
GAMBLING COMPLEX ALONG THE MISSISSIPPI RIVER

THE CASINO COMPANY SAID ITS PLANS INCLUDE A 25000SQUAREFOOT CASINO WITH
900 SLOT MACHINES AND 30 TABLE GAMES THE COMPANY SAID IT SIGNED AN OPTION
TO ACQUIRE 30 ACRES FOR THE FACILITY FROM AN UNIDENTIFIED PRIVATE PARTY

THE PROJECT IS SUBJECT TO THE COMPANY'S RECEIVING A GAMBLING LICENSE AND
OTHER ISSUES CARUTHERSVILLE AT THE SOUTHEASTERN TIP OF THE STATE HAS
ABOUT 400000 PEOPLE LIVING WITHIN A 50MILE RADIUS AND ABOUT 23 MILLION
WITHIN A 100MILE RADIUS AN AZTAR SPOKESMAN SAID

THE VENTURE WOULD BE AZTAR'S FIRST OUTSIDE THE TRADITIONAL GAMBLING MARKETS
IN NEVADA AND ATLANTIC CITY NJ THE COMPANY ALSO RECENTLY SUBMITTED A BID
ON A CASINO PROJECT IN WINDSOR ONTARIO AZTAR'S STOCK ROSE 50 CENTS OR
58 ON THE NEWS TO CLOSE AT 9125 IN NATIONAL OVERTHECOUNTER TRADING
YESTERDAY 9307130044 930713 WHO'S NEWS PHILLIPS PETROLEUM CO

PHILLIPS PETROLEUM CO BARTLESVILLE OKLA VICTORIA J TSCHINKEL
SENIOR CONSULTANT FOR ENVIRONMENTAL ISSUES AT LANDERS & PARSONS
TALLAHASSEE FLA WAS NAMED A DIRECTOR OF THIS OIL COMPANY INCREASING
BOARD MEMBERSHIP TO 13 9307130043 930713 BUSINESS BRIEF DUTY FREE
INTERNATIONAL INC STOCK SLIDES 24 ON OUTLOOK FOR DECLINE IN QUARTER'S
NET

SHARES OF DUTY FREE INTERNATIONAL INC SLUMPED 24 AFTER THE COMPANY SAID
POOR SALES ON THE CANADIAN BORDER WILL REDUCE FISCAL SECONDQUARTER
EARNINGS

DUTY FREE SHARES FELL 625 TO 19875 IN NEW YORK STOCK EXCHANGE
COMPOSITE TRADING ON HEAVY VOLUME OF ONE MILLION SHARES

DUTY FREE SAID IT EXPECTS NET INCOME OF 28 CENTS TO 31 CENTS A SHARE IN THE
SECOND QUARTER ENDING JULY 31 THAT WOULD BE AN 11 TO 20 DECREASE FROM
99 MILLION OR 35 CENTS A SHARE A YEAR EARLIER WHEN SALES WERE 955
MILLION

THE RIDGEFIELD CONN COMPANY SAID QUARTERLY SALES AT ITS NORTHERN BORDER
STORES WERE LIKELY TO BE 10 TO 15 LOWER THAN LAST YEAR IF NEGATIVE SALES
TRENDS CONTINUE IT SAID FEWER CANADIAN TRAVELERS WERE PURCHASING DUTYFREE
MERCHANDISE APPARENTLY BECAUSE OF THE RECESSION AND A WEAKER CURRENCY IN
CANADA

THE COMPANY OPERATES DUTYFREE STORES ALONG THE US BORDERS AND DUTYFREE
AND RETAIL STORES IN US AIRPORTS 9307130042 930713 CHICAGO MERC
BUILDINGS FACE FORECLOSURE ACTION

CHICAGO A FORECLOSURE ACTION WAS FILED ON THE OFFICE COMPLEX THAT HOUSES
THE CHICAGO MERCANTILE EXCHANGE

CME FINANCE NV AN OFFSHORE FINANCING VEHICLE THAT HOLDS THREE SEPARATE
MORTGAGES ON THE COMPLEX SAID THAT TWO LIMITED PARTNERSHIPS FORMED BY
AFFILIATES OF CHICAGO DEVELOPERS JMB REALTY CORP AND METROPOLITAN
STRUCTURES HAD DEFAULTED ON A TOTAL OF 625 MILLION IN DEBT

CME FINANCE SAID IN A STATEMENT THAT THE BORROWERS HAD MISSED A 45 MILLION
PAYMENT IN DECEMBER DESPITE INDICATIONS FROM THE BORROWERS THAT THERE WERE
ADEQUATE RESERVES AND PROPERTY CASH FLOW DURING 1992 TO MAKE THE INTEREST
PAYMENT

A LAWYER REPRESENTING CME FINANCE DECLINED TO DESCRIBE THE LENDING GROUP OR
COMMENT FURTHER ON THE ACTION EXECUTIVES AT JMB REALTY DIDN'T RETURN PHONE
CALLS SEEKING COMMENT AND EXECUTIVES AT METROPOLITAN STRUCTURES COULDN'T BE
REACHED

THE COMPLEX CONTAINS TWO 40STORY OFFICE TOWERS THE FORECLOSURE ACTION IS
NOT EXPECTED TO AFFECT TRADING ACTIVITIES

THE LENDER ASKED THE CIRCUIT COURT OF COOK COUNTY TO APPOINT A RECEIVER TO
MANAGE THE PROPERTY 9307130041 930713 MARKETING & MEDIA DISNEY HOME
VIDEO UNIT SIGNS DISTRIBUTION ACCORD

LAS VEGAS WALT DISNEY CO IS HEDGING ITS HOMEVIDEO BETS WITH SONIC THE
HEDGEHOG

THE COMPANY'S BUENA VISTA HOME VIDEO UNIT SIGNED A FIVEYEAR VIDEO
DISTRIBUTION PACT WITH DIC ANIMATION CITY INC A BURBANK CALIF STUDIO
BEST KNOWN FOR TURNING SUCH VIDEO GAMES AS NINTENDO'S SUPER MARIO BROS
AND SEGA'S SONIC THE HEDGEHOG INTO SATURDAY MORNING CARTOONS IN ADDITION
TO THE SALE OF VIDEO CASSETTES FROM DIC'S LIBRARY WHICH INCLUDES MORE THAN
1000 HALFHOURS OF CARTOONS THE AGREEMENT ALLOWS DISNEY TO EXPLOIT THE DIC
SHOWS FOR INTERACTIVE AND MULTIMEDIA PRODUCTS

THE PACT IS A MAJOR DEPARTURE FOR DISNEY HOME VIDEO WHICH HAS SUCCEEDED
LARGELY ON THE STRENGTH OF ITS OWN ANIMATED FEATURE FILMS SUCH AS BEAUTY
AND THE BEAST AND FANTASIA WE'RE NOT REAL PLAYERS IN THE ACQUISITION
WORLD BILL MECHANIC PRESIDENT OF DISNEY'S INTERNATIONAL THEATRICAL AND
WORLDWIDE VIDEO UNIT SAID AT THE ANNUAL GATHERING OF THE VIDEO SOFTWARE
DEALERS ASSOCIATION HERE STILL MOST OF DISNEY'S CLASSIC ANIMATED FILMS AND
SHORTS HAVE ALREADY BEEN DISTRIBUTED ON VIDEO AND THE COMPANY NEEDS MORE
PROGRAMMING 9307130040 930713 INTERNATIONAL LAW PROPOSED IN GERMANY 
TO STIFLE INSIDER TRADING  SPECIAL TO THE WALL STREET JOURNAL

BONN A DRAFT LAW TO COMBAT INSIDER TRADING ON GERMANY'S STOCK EXCHANGES
WOULD REQUIRE INVESTORS TO DECLARE THEIR HOLDINGS IN A COMPANY WHEN THE
STAKE RISES ABOVE 5 AND WOULD ALLOW JAIL SENTENCES AND FINES FOR
INSIDERTRADING VIOLATIONS

THE DRAFT LAW DRAWN UP BY FINANCE MINISTRY OFFICIALS WILL BE DEBATED BY
THE GERMAN CABINET THIS FALL AND BY THE GERMAN PARLIAMENT IN THE FIRST HALF
OF 1994 ACCORDING TO A TIMETABLE OUTLINED BY FINANCE MINISTRY SOURCES

CURRENTLY INVESTORS DON'T HAVE TO DISCLOSE THEIR STAKES UNTIL THEIR
HOLDINGS EXCEED 25 THE LAW WOULD REQUIRE INVESTORS TO DISCLOSE THEIR
HOLDINGS AS THEY RISE TO 10 25 50 AND 75

FAILURE TO DISCLOSE HOLDINGS EXCEEDING THE INCREMENTAL LIMITS WOULD BE
PUNISHABLE BY A FINE OF 500000 MARKS US294000 AND THE POSSIBLE
SUSPENSION OF THE SHARES' VOTING RIGHTS

GERMANY HAS NO SPECIFIC LAWS AGAINST INSIDER TRADING INSTEAD THE COUNTRY
USES A SYSTEM OF SELFREGULATION BY THE MARKETS A PERSON CAUGHT AND PROVEN
TO HAVE TRADED ON INSIDE INFORMATION HAS TO DISGORGE THE PROFITS FROM THE
TRANSACTION HOWEVER RARELY HAS THIS DISGORGEMENT RULE BEEN ENFORCED AND
THERE ARE NO PROVISIONS FOR FINES OR JAIL SENTENCES 9307130039 930713
WHO'S NEWS JACKPOT'S TOP POSTS GO TO EXCHAIRMAN OF PANEL ON GAMBLING

LAS VEGAS JACKPOT ENTERPRISES INC SAID JOHN F O'REILLY FORMER
CHAIRMAN OF THE NEVADA GAMING COMMISSION WAS NAMED CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF THE SLOTMACHINE ROUTE AND CASINO OPERATOR EFFECTIVE
JULY 1

MR O'REILLY 47 YEARS OLD SUCCEEDS NEIL ROSENSTEIN 67 A COMPANY FOUNDER
WHO WILL REMAIN ON THE BOARD MR O'REILLY WILL ALSO JOIN JACKPOT'S BOARD
INCREASING IT TO FIVE MEMBERS FROM FOUR

A LAWYER WHO ALSO HOLDS DEGREES IN BUSINESS AND ACCOUNTING MR O'REILLY
WILL BE OVERSEEING THE COMPANY'S EXPANSION INTO NEW JURISDICTIONS THE
COMPANY HAS BEEN EXPANDING FROM ITS BASIC BUSINESS OF OPERATING NONCASINO
SLOTMACHINE ROUTES INTO CASINO OPERATIONS AND RIVERBOAT CASINO VENTURES IN
MISSISSIPPI SOUTH DAKOTA AND ELSEWHERE

MR ROSENSTEIN WHO ANNOUNCED THIS YEAR THAT HE WOULD BE RETIRING SAID MR
O'REILLY'S GAMBLING EXPERTISE AND REGULATORY EXPERIENCE WOULD BE CRUCIAL TO
JACKPOT'S LONGTERM STRATEGY WE HAVE A TREMENDOUS NEED FOR MANPOWER AS IT
DEVELOPS INTO TWO SEPARATE DIVISIONS MR ROSENSTEIN SAID JACKPOT'S STOCK
WAS QUOTED AT 21625 UP 875 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE
TRADING 9307130038 930713 BUSINESS BRIEF ALCO STANDARD CORP STOCK
DECLINES NEARLY 10 ON WEAKNESS IN PAPER LINE

ALCO STANDARD CORP'S SHARES FELL NEARLY 10 AFTER THE COMPANY INDICATED
THAT FISCAL THIRDQUARTER OPERATING PROFIT FOR ITS MAIN PAPERDISTRIBUTION
BUSINESS WOULD BE OFF 4 TO 5 BECAUSE OF A DELAY IN PASSING ALONG PRICE
INCREASES FROM SUPPLIERS

THE VALLEY FORGE PA DISTRIBUTOR OF PAPER AND OFFICE PRODUCTS EXPECTS TO
REPORT PROFIT FROM CONTINUING OPERATIONS FOR ALL OF ITS BUSINESSES IN
THE RANGE OF 298 MILLION TO 312 MILLION OR 56 CENTS TO 59 CENTS A
SHARE FOR THE QUARTER ENDED JUNE 30 IN THE YEAREARLIER QUARTER ALCO
POSTED NET INCOME OF 287 MILLION OR 58 CENTS A SHARE INCLUDING THREE
CENTS A SHARE FROM THE SALE OF AN INVESTMENT ALCO STANDARD EXPECTS TO
REPORT THAT REVENUE FROM ITS US PAPERDISTRIBUTION BUSINESS ROSE 11 FROM
THE YEAREARLIER PERIOD

IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALCO STANDARD'S SHARES
CLOSED AT 44 DOWN 475 BUT THE DROP IS A TEMPORARY BLIP SAID PHUA K
YOUNG AN ANALYST WITH LEHMAN BROTHERS HE SAID ANALYSTS HAD EXPECTED PROFIT
FROM CONTINUING OPERATIONS OF 65 CENTS A SHARE AND SURPRISE AT THE
DIFFERENCE DROVE THE STOCK PRICE DOWN HOWEVER HE ADDED THE COMPANY SHOULD
RECOVER WHEN IT IS ABLE TO PASS ON PRICE INCREASES 9307130037 930713
LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES
 FIELDS AND FACTORIES  BY ALBERT R KARR

JAPAN'S DIET SLIMS THE NATIONAL WORK WEEK BY FOUR HOURS

THE PARLIAMENT REQUIRED A 40HOUR WEEK STARTING NEXT APRIL DOWN FROM 44 IT
ALSO PROVIDED FOR HOLIDAY OVERTIME PAY OF AS MUCH AS 50 OF THE HOURLY WAGE
UP FROM 25 NOW THE MOVE IS PART OF A GOVERNMENT DRIVE TO MAKE JAPAN A
LIFESTYLE SUPERPOWER SO WORKERS CAN PLAY MORE THE GOAL 1800 ANNUAL
WORK HOURS FOR EACH WORKER IN 1997 DOWN FROM 1958 LAST YEAR

SMALL FIRMS GET A GRACE PERIOD ON THE 40HOUR WEEK UNTIL APRIL 1997
CURRENTLY 21 OF FIRMS WITH 30 TO 99 WORKERS HAVE 40HOUR WEEKS BUT 28
WORK MORE THAN 46 HOURS THE LABOR MINISTRY SAYS OF COMPANIES WITH MORE
THAN 1000 EMPLOYEES 81 ALREADY OBSERVE 40HOUR WEEKS MATSUSHITA ELECTRIC
INDUSTRIAL CUT ITS DAY TO SEVEN HOURS AND 45 MINUTES IN APRIL AND PAYS A
45 HOLIDAY PREMIUM

HIROJI YOSHIKAWA WHO OWNS AN 80WORKER METALWORKING SHOP FEARS RISING
PAYROLL COSTS FROM THE NEW LAW

JOB CONCERNS CUT DIFFERENT WAYS FOR COLLEGE GRADS

AS IN THE PAST TWO YEARS THE TOUGH EMPLOYMENT MARKET ENCOURAGES MANY OF
LAST SPRING'S GRADUATES TO SEEK MORE LEARNING GRADUATE SCHOOLS AT TEXAS
TECH FLORIDA STATE GEORGIA AND EMORY SAY THE UNIVERSITY OF CALIFORNIA'S
BUSINESS SCHOOL CITES LAYOFFS AND OTHER JOB PROBLEMS AS SPURRING 54 OF
ADMITTEES TO SAY THEY WILL ARRIVE THIS FALL UP FROM 45 LAST YEAR

BUT STANFORD'S GRADUATE BUSINESS SCHOOL TELLS LAST YEAR'S REJECTS TO WORK A
WHILE BEFORE TRYING AGAIN AND ITS LAW SCHOOL SAW A 2 TO 3 APPLICATIONS
DROP THIS YEAR WHILE THOSE AT TEXAS A&M'S GRAD SCHOOL ARE FLAT BOTH
COLLEGES SAY PROSPECTS WHO HAVE JOBS ARE RELUCTANT TO GIVE THEM UP THESE
DAYS GRADSCHOOL APPLICATIONS FROM STATE RESIDENTS ARE DOWN AT THE
UNIVERSITY OF TEXAS BUT UP FROM OUTOFSTATERS SUGGESTING BETTER TEXAS JOB
PROSPECTS

WOMEN RETIREES THEY LOOM LARGER ON THE WORLDOFWORK HORIZON

WOMEN WERE NEARLY HALF THE NONFARM WORK FORCE IN 1991 YET ONLY 397 WERE
COVERED BY PENSION PLANS WHILE 47 OF MEN HAD RETIREMENT COVERAGE THE
EMPLOYEE BENEFIT RESEARCH INSTITUTE SAYS HOWEVER THE FEMALE COVERAGE
FIGURE INCREASED FROM 367 IN 1988 AND WITH THE NUMBER OF WOMEN WORKERS
CLIMBING SINCE THE 1970S FIRMS LIKE DELMARVA POWER & LIGHT AND FLUOR SEE
FEMALE RETIREES RISING FAST IN THE NEXT DECADE

THE MALEFEMALE PENSION COVERAGE GAP IS GREATEST AMONG OLDER WORKERS BUT
THE OVERALL GAP IS CLOSING FASTER THAN THE WAGE DISPARITY SAYS ANALYST
SOPHIE KORCZYK IN A LABOR DEPARTMENT REPORT WOMEN'S COVERAGE IS LIMITED BY
THEIR WORKING EXPERIENCE THEY EARN LESS CHANGE JOBS MORE OFTEN QUIT AND
COME BACK MORE OFTEN AND WORK MORE IN GROUPS THAT LACK RETIREMENT BENEFITS
SAYS MARTHA PRIDDY PATTERSON BENEFITS DIRECTOR FOR ACCOUNTANT PEAT MARWICK

EVEN SMART HARDWORKING WOMEN ARE NOT PAYING ATTENTION TO THEIR FINANCIAL
RETIREMENT FUTURE WARNS MS PATTERSON IN A NEW BOOK

AMERICANS EXPECT AN AVERAGE OF 20 YEARS OF RETIREMENT AND WORKERS PLAN TO
RETIRE AT 62 ON AVERAGE AN EBRI/GALLUP ORGANIZATION SURVEY OF 1000 PEOPLE
SHOWS LAST YEAR RESPONDENTS IN A SIMILAR POLL EXPECTED 214 RETIRED YEARS
AND PLANNED TO RETIRE AT AN AVERAGE AGE OF 61 MALES WERE MORE LIKELY THAN
WOMEN TO HAVE BEGUN SAVING EARLY FOR RETIREMENT

PROGRESS REPORT LABOR SECRETARY REICH SAID IN A CNN INTERVIEW SUNDAY THAT
HE NO LONGER WILL SAY THE NATION IS IN A JOBLESS RECOVERY WITH MORE THAN
800000 JOBS CREATED UNDER THE CLINTON ADMINISTRATION BUT IT IS NOT THE
KIND OF BUOYANT RECOVERY WE STILL WOULD WANT HE ADDED

BALLOT BURNING JACK PARTON HEAD OF STEELWORKERS DISTRICT 31 AND OFFICERS
OF LOCAL 1010 TORCHED 8000 UNCOUNTED LABORCONTRACT RATIFICATION BALLOTS IN
A DISPUTE WITH INLAND STEEL OVER ACCOUNTINGRULES CHANGES FOR FUTURE
PROFITSHARING CALCULATIONS A UNION SPOKESMAN SAID WITH THE DISPUTE
RESOLVED NEW BALLOTS WERE MAILED WITH A VOTE COUNT SET FOR JULY 20

A NATIONAL JOBSKILLS BOARD IS MORE LIKELY AFTER A POLITICAL DEAL

THE PANEL WOULD PROD INDUSTRIES TO DEVELOP VOLUNTARY NATIONAL STANDARDS FOR
WORK SKILLS LETTING EMPLOYEES GET CREDENTIALS TO SHOW CERTAIN COMPETENCIES
SO A CALIFORNIA ELECTRONICS EMPLOYER WOULD KNOW THE SKILLS OF A WORKER HIRED
FROM A TEXAS FIRM BUT THE EFFORT WAS STYMIED BY SENATE REPUBLICANS'
OBJECTIONS THAT BUSINESS'S ROLE ON THE BOARD WAS TOO SMALL

PROSPECTS BRIGHTENED LAST WEEK FOR LEGISLATION AUTHORIZING THE BOARD AFTER
MR REICH AND GOP SEN NANCY KASSEBAUM OF KANSAS STRUCK A DEAL TO PUT A
BUSINESS LEADER AT THE 24MEMBER BOARD'S HELM INSTEAD OF MR REICH AND TO
INCLUDE CORPORATE PERSONNEL OFFICIALS MR REICH PLANS TO RELEASE DETAILS
TODAY THE SENATE COULD PASS THE BILL SOON AS PART OF AN EDUCATIONREFORM
PACKAGE

THE BOARD TO BE NAMED BY THE PRESIDENT AND CONGRESS WOULD INCLUDE EIGHT
BUSINESS LEADERS EIGHT UNIONISTS THREE EDUCATORS AND A TRAINING AND
CIVILRIGHTS EXPERT

THE CHECKOFF OF 100 SPOUSES OF FIRED MANAGERS QUESTIONED BY PLACEMENT FIRM
CHALLENGER GRAY & CHRISTMAS IN THE FIRST QUARTER 65 SAID THE DISCHARGE
DIDN'T SURPRISE THEM  FROM THE CHAIRMAN ON DOWN MANAGERS' BUSINESS
CARDS AT AUTO ZONE AN AUTOPARTS FIRM BEAR THE SUBTITLE CUSTOMER
SATISFACTION 9307130036 930713 BUSINESS BRIEF HUMANA INC HMO IN
WASHINGTON AGREES TO BE BOUGHT FOR 50 MILLION

HUMANA INC LOUISVILLE KY SAID IT SIGNED A LETTER OF INTENT TO BUY GROUP
HEALTH ASSOCIATION A WASHINGTON HEALTH MAINTENANCE ORGANIZATION FOR ABOUT
50 MILLION

THE ACQUISITION WOULD ADD 134000 MEMBERS TO HUMANA'S 16 MILLION MEMBERS
THIS ACQUISITION INTRODUCES HUMANA INTO ONE OF THE LARGEST MARKETS IN THE
COUNTRY SAID WAYNE T SMITH HUMANA'S PRESIDENT AND CHIEF OPERATING
OFFICER

THE AGREEMENT IS SUBJECT TO REGULATORY APPROVAL A VOTE BY GROUP HEALTH'S
MEMBERS AND A DUE DILIGENCE REVIEW THE FINAL PURCHASE PRICE MAY VARY
ACCORDING TO THE FINAL NET ASSETS PURCHASED

HUMANA PROVIDES GROUP HEALTH PLANS AND OPERATES HEALTHCARE PLANS FOR
EMPLOYEE GROUPS AND MEDICARE BENEFICIARIES 9307130035 930713 BUSINESS
BRIEF HORMEL FOODS & CO CONCERN BUYS FDL BRANDS AND PLANT HERBOX
LINE

HORMEL FOODS & CO SAID IT BOUGHT BRANDS AND A PLANT FACILITY FROM FDL FOODS
INC DUBUQUE IOWA AND ACQUIRED THE HERBOX BRAND FOOD LINE FROM RECKITT &
COLMAN INC WAYNE NJ

THE AUSTIN MINN FOOD COMPANY DIDN'T DISCLOSE TERMS OF THE ACQUISITIONS

HORMEL'S DUBUQUE FOODS INC UNIT ACQUIRED THE BRANDS OF FDL FOODS'
VALUEADDED RETAIL AND FOODSERVICE PRODUCTS WHICH INCLUDE THE DUBUQUE AND
DUBUQUE SUPREME BRANDS ROCHELLE FOODS INC ANOTHER HORMEL UNIT PURCHASED
FROM FDL FOODS ITS PORK SLAUGHTERING AND PROCESSING PLANT IN ROCHELLE ILL

HORMEL SAID IT ALSO BOUGHT THE HERBOX BRAND LINE OF BOUILLON AND DRY SOUP
MIXES FROM THE RECKITT & COLMAN PLC UNIT AS WELL AS EQUIPMENT USED TO MAKE
AND PACKAGE THESE PRODUCTS 9307130034 930713 CREDIT RATINGS

TRANSCO ENERGY CO HOUSTON STANDARD & POOR'S CORP SAID IT PLACED
TRANSCO ON ITS CREDIT WATCH WITH POSITIVE IMPLICATIONS SINCE A FINANCIAL
RESTRUCTURING PLAN WAS ANNOUNCED IN THE FALL OF 1991 TRANSCO AN INTERSTATE
PIPELINE COMPANY HAS SOLD ABOUT 227 MILLION OF ASSETS INCLUDING NONCORE
BUSINESSES SUCH AS OIL AND GAS EXPLORATION AND PRODUCTION ASSETS ITS COAL
COMPANY IS STILL ON THE BLOCK IN ADDITION TO THESE SALES LAST WEEK TRANSCO
AGREED TO SELL ITS POWER GENERATION DEVELOPMENT AND CONSTRUCTION COMPANY
TEVCO FOR 160 MILLION WHICH S&P CITED TRANSCO HIGHLY LEVERAGED IS
USING PROCEEDS FROM THESE SALES TO REDUCE LONGTERM DEBT WITH ALL THE SALES
COMPLETE THE COMPANY'S DEBTTOCAPITALIZATION RATIO WILL STAND AT ABOUT
69 DOWN FROM 72 AT THE BEGINNING OF THE RESTRUCTURING PLAN SAID A
SPOKESWOMAN FOR TRANSCO SEPARATELY TRANSCO SAID IT AGREED TO SELL ITS
INTERESTS IN COAL BED METHANE WELLS TO A UNIT OF TECO ENERGY INC FOR 155
MILLION AND CERTAIN FUTURE PRODUCTION PAYMENTS THE 500 WELLS TO BE SOLD TO
TECO OF TAMPA FLA ARE IN THE BLACK WARRIOR BASIN OF ALABAMA 9307130033
930713 BUSINESS BRIEF CIRCUS CIRCUS ENTERPRISES INC CONCERN CUTS SUM
IT PLANS TO RAISE TO 300 MILLION

CIRCUS CIRCUS ENTERPRISES INC LAS VEGAS SAID IT LOWERED TO 300 MILLION
FROM 400 MILLION THE TOTAL FUNDS IT HOPES TO RAISE THROUGH TWO PLANNED DEBT
OFFERINGS

COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT ON THE REASON FOR THE
CHANGE BEFORE THE ANNOUNCEMENT TWO MAJOR RATING AGENCIES ISSUED STATEMENTS
SAYING THAT THEY RAISED THEIR RATINGS ON THE COMPANY'S EXISTING SENIOR DEBT
AND ASSIGNED THE HIGHER RATINGS TO THE PROPOSED NEW ISSUES

MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON DEBT TO BDOUBLEA3
FROM BA1 AND ASSIGNED BDOUBLEA3 RATINGS TO THE NEW ISSUES STANDARD &
POOR'S CORP RAISED ITS RATINGS ON THE EXISTING DEBT TO TRIPLEBPLUS FROM
TRIPLEB AND ASSIGNED THE TRIPLEBPLUS RATING TO THE NEW DEBT
9307130032 930713 MARKETING & MEDIA KNOPF WILL PUBLISH BOOK BY BUSH
ON FOREIGN POLICY

NEW YORK FORMER PRESIDENT BUSH HAS SIGNED A DEAL TO COWRITE A BOOK ABOUT
FOREIGN POLICY FOR PUBLISHER ALFRED A KNOPF MR BUSH WILL WRITE THE BOOK
DUE IN EARLY 1995 WITH BRENT SCOWCROFT FORMER NATIONAL SECURITY ADVISER

KNOPF A DIVISION OF ADVANCE PUBLICATIONS INC'S RANDOM HOUSE SAID IT
ACQUIRED WORLD RIGHTS FOR THE BOOK WHICH IT WILL ALSO PUBLISH IN A VINTAGE
BOOKS PAPERBACK EDITION TERMS WEREN'T DISCLOSED BUT OTHER PUBLISHERS KNOWN
FOR POLITICAL MEMOIRS ESTIMATE THAT THE BOOK BROUGHT AN ADVANCE CLOSE TO
THAT OF MR BUSH'S WIFE BARBARA WHOSE MEMOIRS SOLD FOR 25 MILLION

THE SUBJECT MATTER IS SOMETHING OF A SURPRISE BECAUSE IT ISN'T A STANDARD
PRESIDENTIAL MEMOIR LIKE THOSE RELEASED BY RONALD REAGAN JIMMY CARTER
RICHARD NIXON AND OTHER FORMER PRESIDENTS ASHBEL GREEN A KNOPF VICE
PRESIDENT WHO WILL EDIT THE BOOK SAYS IT WILL BE AN INTIMATE AND REVEALING
STUDY OF THE MAKING OF FOREIGN POLICY DURING THE BUSH ADMINISTRATION

WHILE SOME PUBLISHING EXECUTIVES FEEL THAT MR BUSH SHOULD HAVE STARTED WITH
A STANDARD MEMOIR OTHERS SAY HIS 1987 MEMOIR LOOKING FORWARD IS TOO
RECENT AND WASN'T A BIG SELLER

I THINK THIS IS MUCH MORE APPEALING AS A BOOK TOPIC SAYS ERWIN GLIKES
PUBLISHER OF MACMILLAN'S FREE PRESS HOW DO YOU WRITE A MEMOIR OF AN
ADMINISTRATION THAT HAD ONE HIGH SPOT THE GULF WAR WITHOUT SOUNDING
DEFENSIVE ON THE OTHER HAND GEORGE BUSH IS VERY IMPRESSIVE ON FOREIGN
AFFAIRS AND A LOT OF THE ISSUES HE DEALT WITH ARE STILL TIMELY
9307130031 930713 NORTHWEST EXPANDS A PERK FOR ITS FREQUENT FLIERS

ST PAUL MINN NORTHWEST AIRLINES IN A BID TO CAPTURE MORE BUSINESS
TRAVELERS EXPANDED ITS PROGRAM THAT LETS SOME PASSENGERS WITH COACH TICKETS
FLY FIRSTCLASS IN THE US OR CANADA

THE OFFER WHICH APPLIES LARGELY TO PASSENGERS CONNECTING THROUGH NORTHWEST
HUBS IN MINNEAPOLIS ST PAUL DETROIT OR MEMPHIS TENN COMES AS
NORTHWEST HOPES TO LURE BACK FLIERS SCARED AWAY FROM THE AIRLINE BY THREATS
OF A BANKRUPTCYLAW FILING

THE COMPANY HAS SAID IT WILL FILE FOR CHAPTER 11 PROTECTION FROM CREDITORS
IF MEMBERS OF ITS UNIONS DON'T APPROVE PACTS TO HELP THE CARRIER CUT ITS
TOTAL LABOR COSTS BY 886 MILLION OVER THREE YEARS

THE TEAMSTERS UNION WHICH REPRESENTS NEARLY 9000 FLIGHT ATTENDANTS SAID
YESTERDAY IT EXPECTS TO BEGIN VOTING BY MAIL ON A REVISED TENTATIVE
AGREEMENT BY NEXT WEEK MEMBERS OF THE MACHINISTS UNION ALSO HAVE TO VOTE ON
AN AGREEMENT THEIR LEADERS REACHED WITH THE AIRLINE

NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC SAID MEMBERS OF ITS
FREQUENTFLIER PROGRAM WHO PAID THE FULL COACH FARE WILL EARN DOUBLE MILEAGE
IF FIRSTCLASS SEATS AREN'T AVAILABLE

CONTINENTAL AIRLINES ALREADY HAS A PROGRAM UNDER WHICH FULLFARE COACH
PASSENGERS ARE AUTOMATICALLY BOOKED TO FIRST CLASS AMONG OTHER CARRIERS
THE AMERICAN AIRLINES UNIT OF AMR CORP SAID IT WOULDN'T MATCH THE MOVE
WHILE DELTA AIR LINES AND UAL CORP'S UNITED AIRLINES SAID THEY'RE REVIEWING
IT 9307130030 930713 FINANCING BUSINESS CAMBRIDGE SHOPPING CENTRES
LTD

CAMBRIDGE SHOPPING CENTRES LTD TORONTO GEARING UP FOR A MAJOR DRIVE TO
ACQUIRE LARGE US AND CANADIAN SHOPPING MALLS SAID IT PLANS AN EQUITY
ISSUE THIS FISCAL YEAR TO RAISE BETWEEN 75 MILLION AND 125 MILLION CANADIAN
DOLLARS US587 MILLION TO US978 MILLION CAMBRIDGE A SHOPPING MALL
DEVELOPER AND MANAGER WHOSE CONSERVATIVE FINANCING PRACTICES HAVE HELPED IT
ESCAPE THE WORST OF THE REALESTATE MARKET'S RAVAGES ALSO SAID IT WILL SEEK
TO CONVERT INTO EQUITY ITS C263 MILLION OF CONVERTIBLE DEBENTURES IN THE
CURRENT FISCAL YEAR WHICH ENDS NEXT MARCH 31 THE MOVE WOULD LEAVE
CAMBRIDGE BETTER ABLE TO FINANCE ACQUISITIONS SAID DONALD PRIDDLE CHIEF
FINANCIAL OFFICER J LORNE BRAITHWAITE CAMBRIDGE'S PRESIDENT AND CHIEF
EXECUTIVE OFFICER SAID THE COMPANY COULD HANDLE AN AQUISITION THAT
REPRESENTED A 30 TO 50 EXPANSION OF CAMBRIDGE'S CURRENT 28 MILLION SQUARE
FEET OF GROSS LEASING AREA UNDER MANAGEMENT ON THE TORONTO STOCK EXCHANGE
CAMBRIDGE SHARES CLOSED YESTERDAY AT C1550 DOWN 50 CANADIAN CENTS
9307130029 930713 CONCORD CAMERA NOTES PROFIT

AVENEL NJ CONCORD CAMERA CORP SAID IT EXPECTS OPERATIONS FOR THE
FISCAL FOURTH QUARTER ENDED JUNE 30 TO REFLECT A RETURN TO
PROFITABILITY

THE COMPANY ALSO SAID IT EXPECTS TO POST REVENUE OF 14 MILLION FOR THE
QUARTER COMPARED WITH 11 MILLION FOR THE YEARBEFORE QUARTER

A CONCORD CAMERA SPOKESMAN SAID THE COMPANY POSTED LOSSES IN EACH OF THE
FOUR QUARTERS PRIOR TO THE ONE JUST ENDED 9307130028 930713 HILLARY
CLINTON SAYS TAX ON CIGARETTES IS POSSIBLE

HONOLULU HILLARY RODHAM CLINTON SAID AN INCREASE IN CIGARETTE TAXES IS A
POSSIBILITY FOR THE ADMINISTRATION'S HEALTHCARE PROPOSAL BUT SAID SHE
DIDN'T EXPECT A SIGNIFICANT TAX INCREASE TO BE PART OF THE PLAN

OTHER ADMINISTRATION OFFICIALS HAVE MADE CLEAR THAT THE CLINTONS ARE LEANING
TOWARD REQUIRING EMPLOYERS TO PURCHASE COVERAGE FOR THEIR EMPLOYEES OR MAKE
A SPECIFIED PAYMENT FROM THEIR PAYROLL TO FUND HEALTH CARE FOR EVERYONE

ALTHOUGH FINAL DECISIONS HAVEN'T BEEN MADE MRS CLINTON TOLD REPORTERS HERE
THAT THE HEALTHCARE PLAN MIGHT CONTAIN SOME TAXES ON CIGARETTES OR
SOMETHING TO FUND THE INFRASTRUCTURE OF THE PLAN

THE PRESIDENT'S HEALTHCARE PLAN WILL PROBABLY BE UNVEILED IN SEPTEMBER SHE
SAID AFTER THE BUDGET PACKAGE IS ENACTED

MRS CLINTON REITERATED THAT A SOCALLED SINGLEPAYER SYSTEM SUCH AS THE
ONE IN CANADA WHICH IS FINANCED AND CONTROLLED BY THE FEDERAL GOVERNMENT
ISN'T FAVORED BY THE ADMINISTRATION SHE SAID IT WOULD REQUIRE A BIG TAX
INCREASE AND TAKE AWAY MORE FLEXIBILITY THAN MOST AMERICANS ARE WILLING TO
RELINQUISH

ADMINISTRATION OFFICIALS SAID THE PROGRAM WOULD BE FLEXIBLE HOWEVER AND
WOULD CONTAIN CERTAIN ELEMENTS OF THE SINGLEPAYER SYSTEM THAT ARE FAVORED
BY SOME MEMBERS OF CONGRESS 9307130027 930713 INTERNATIONAL BRIEF 
VIRGIN GROUP LTD VIRGIN ATLANTIC UNIT FILES COMPLAINT AGAINST CARRIER

VIRGIN GROUP LTD'S VIRGIN ATLANTIC AIRWAYS OPENED ANOTHER FRONT IN ITS AIR
WAR WITH BRITISH AIRWAYS FILING A COMPLAINT WITH THE EUROPEAN COMMUNITY
ATTACKING SOME OF THE BIGGER AIRLINE'S SALES INCENTIVES AS ANTICOMPETITIVE

IN A COMPLAINT YESTERDAY TO THE EC COMMISSION'S COMPETITION DIRECTORATE IN
BRUSSELS VIRGIN IN LONDON REQUESTED AN INVESTIGATION INTO HIGHER SALES
INCENTIVES THAT BRITISH AIRWAYS IS OFFERING TRAVEL AGENTS AND BIG CORPORATE
TRAVEL DEPARTMENTS A VIRGIN SPOKESMAN SAID BA'S SCHEDULE OF COMMISSIONS AND
DISCOUNTS VIOLATES EC COMPETITION LAW BY TRYING TO EXCLUDE SMALLER AIRLINES
FROM THE MARKET

VIRGIN CONTENDS THAT IT HAS LOST BUSINESS BECAUSE OF THE BA INCENTIVES
WHICH IT SAID SMALLER AIRLINES CAN'T AFFORD TO MATCH FOR EXAMPLE THE
VIRGIN SPOKESMAN SAID BRITISH TELECOMMUNICATIONS PLC RECENTLY INFORMED
VIRGIN THAT IT IS SWITCHING MOST OF ITS TRANSATLANTIC BUSINESS TO BA A BT
SPOKESWOMAN DECLINED TO COMMENT

BRITISH AIRWAYS ALSO DECLINED TO DISCUSS THE CASE A SPOKESMAN SAID BECAUSE
IT HADN'T SEEN THE COMPLAINT 9307130026 930713 LEISURE & ARTS TOP TEN
SINGLES / ALBUMS

COMPILED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS
AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND
RADIO PLAY LISTS 9307130025 930713 CORRECTIONS & AMPLIFICATIONS

THE OIL INDUSTRY GAVE 47 MILLION IN UNRESTRICTED SOFTMONEY
CONTRIBUTIONS TO THE REPUBLICAN AND DEMOCRATIC PARTIES IN THE LAST ELECTION
CYCLE ACCORDING TO FIGURES COMPILED FOR THE WALL STREET JOURNAL BY THE
CENTER FOR RESPONSIVE POLITICS IN AN ARTICLE YESTERDAY ON THE
DEFICITREDUCTION NEGOTIATIONS IN CONGRESS THE FIGURE WAS INCORRECTLY GIVEN
AS 47 BILLION

PDV AMERICA INC WILL PRICE A 1 BILLION DEBT ISSUE IN COMING WEEKS NOT
THIS WEEK IT WILL NOT BE A YANKEE BOND YESTERDAY'S SECURITIES OFFERING
CALENDAR INCORRECTLY STATED THAT PETROLEOS DE VENEZUELA SA PDV'S PARENT
WOULD PRICE A 13 BILLION YANKEE BOND OFFERING THIS WEEK 9307130024
930713 MONDAY'S MARKETS STOCKS BONDS FINISH HIGHER DOLLAR IS MIXED
  BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL

THE STOCK MARKET SNOOZED AHEAD OF THIS WEEK'S DATA ON INFLATION WITH PRICES
ENDING MODESTLY HIGHER BOND MARKET TRADING ALSO WAS LISTLESS BUT PRICES
ROSE ENOUGH TO SEND LONGTERM INTEREST RATES TO YET ANOTHER 16YEAR LOW THE
DOLLAR WAS MIXED

THE DOW JONES INDUSTRIAL AVERAGE GAINED 332 POINTS TO 352438 STANDARD &
POOR'S 500STOCK INDEX ROSE 085 TO 44898 AND THE NASDAQ COMPOSITE INDEX
ADDED 186 TO 70767

MANY STOCK MARKET INVESTORS SAT OUT YESTERDAY'S ACTIVITY TO AWAIT TODAY'S
RELEASE OF WHOLESALE PRICES FOR JUNE AND WEDNESDAY'S REPORT ON CONSUMER
PRICES

WE HAVE A POTENTIALLY VOLATILE WEEK HERE SAID JACK BAKER MANAGING
DIRECTOR FOR STOCK TRADING AT FURMAN SELZ IF THE NUMBERS ARE FAVORABLE WE
COULD HAVE AN UPWARD BURST TO 3570 ON THE DOW IF THE NUMBERS TURN OUT TO BE
BAD WE COULD RACE BACK DOWN TO 3450

STOCK PRICES WERE MIXED FOR MOST OF THE DAY WITH THE DOW INDUSTRIALS
SAGGING SLIGHTLY BUT THE DOW EDGED INTO HIGHER TERRITORY JUST BEFORE THE
CLOSE MR BAKER SAID INVESTORS SHOULDN'T BE DISCOURAGED BY THE STOCK
MARKET'S LACKLUSTER PERFORMANCE YESTERDAY WHAT YOU SEE IS NOT WHAT YOU'RE
GETTING HE SAID THE BROAD MARKET IS MUCH HEALTHIER THAN IT APPEARS

AUTO STOCKS SLUMPED YESTERDAY AFTER SALOMON BROTHERS CUT ITS INVESTMENT
RATING ON FORD MOTOR CO THE DOWNGRADE SHAVED 2 OFF FORD'S STOCK PRICE TO 50
1/8 GENERAL MOTORS CORP LOST 5/8 TO 46 7/8 AND CHRYSLER CORP DROPPED 5/8
TO 46 7/8

BOND TRADERS ALSO WERE RELUCTANT TO ENTER THE MARKET IN A BIG WAY BUT BOND
PRICES MOVED HIGHER AS COMMODITIES PRICES SOFTENED A BIT

OVERSEAS HONG KONG STOCKS PLUNGED 17 AFTER CHINA BOOSTED INTEREST RATES
OVER THE WEEKEND IN GERMANY STOCK PRICES JUMPED 12 TO THEIR HIGHEST
LEVEL IN THREE YEARS ON EXPECTATIONS OF AN IMMINENT INTEREST RATE CUT

WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK
INDEX GAINED 023 TO 10564

IN MAJOR MARKET ACTION

STOCK PRICES ROSE VOLUME TOTALED 2023 MILLION SHARES ON THE NEW YORK STOCK
EXCHANGE WHERE 1027 ISSUES ROSE AND 898 FELL

BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY
ONEQUARTER POINT OR NEARLY 250 FOR EACH 1000 FACE AMOUNT TO YIELD
662

THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT
17305 MARKS AND 10940 YEN COMPARED WITH 17225 MARKS AND 10995 YEN
FRIDAY 9307130023 930713 ENTERPRISE SERVICE PROVIDERS TRY TO MAKE THE
MUNDANE BEARABLE  LAUNDROMATS CARWASHES LURE CUSTOMERS WITH WIDE
RANGE OF ENTERTAINMENT  BY MELISSA LEE STAFF REPORTER OF THE WALL
STREET JOURNAL

SMALL BUSINESSES PROVIDING DOWNTOEARTH SERVICES SUCH AS CAR WASHING SHOE
REPAIR AND CLOTHES LAUNDERING ARE INCREASING SALES BY HELPING THEIR
CUSTOMERS FIGHT THE BLAHS WHEN THEY HAUL IN THEIR POSSESSIONS

TRADITIONALLY A TRIP TO THE CARWASH OR LAUNDROMAT HAS HELD ALL THE ALLURE
OF SAY CLEANING A BATHTUB AND THAT HAS BEEN BAD NEWS FOR SUCH SERVICE
PROVIDERS BECAUSE CUSTOMERS TEND TO PUT OFF MONOTONOUS CHORES AS LONG AS
POSSIBLE

SO BUSINESSES ARE LURING THEM WITH ENTERTAINMENT RANGING FROM GIANT
TELEVISION SCREENS TO MINIATURE ZOOS AND THE STRATEGY IS WORKING

AT WE'LL CLEAN AUTO SPA A CHICAGO FIRM WITH TWO LOCATIONS FOR EXAMPLE CAR
OWNERS NO LONGER HAVE TO CHOOSE BETWEEN STARING AT THE WAITING ROOM WALLS OR
WATCHING SCRUBBERS AND WATER JETS THE CHICAGO BUSINESS HAS INSTALLED
RABBITPETTING PENS AN AQUARIUM A SUN DECK CABLE TELEVISION AND A GAME
TABLE FOR KIDS IT ALSO PROVIDES FREE POPCORN

IT'S NICE BECAUSE IT MAKES THE TIME FLY AND IT LETS YOU CATCH A MOMENT FOR
A BREATHER SAYS RICHARD D JOUTRAS WHO HAS BEEN GETTING HIS TOYOTA
LANDCRUISER AND BMW CLEANED AND DETAILED ABOUT ONCE A WEEK FOR THE PAST TWO
YEARS AND THE COUPLE OF TIMES I BROUGHT MY THREE CHILDREN IN ON THE
WEEKENDS THEY LOVE TO GO AND TALK TO AND PET THE RABBITS

HEATHER LAUNIUS COOWNER OF WE'LL CLEAN SAYS THE COST OF PROVIDING THE
AMENITIES IS MINIMAL ESPECIALLY SINCE SHE AND HER STAFF FEED THE RABBITS
AND CLEAN THE AQUARIUM THEMSELVES BUT SHE SAYS THE PAYOFF IS BIG WE'LL
CLEAN'S BUSINESS IS BOOMING DESPITE ITS 400 COMPETITORS IN THE CHICAGO
METROPOLITAN AREA

WHILE THE ARRAY OF EXTRAS AT WE'LL CLEAN IS UNUSUAL CARWASHES ARE
INCREASINGLY LOOKING FOR WAYS TO IMPROVE THEIR LOOKS AND ATTRACT CUSTOMERS
SAYS GUS TRANTHAM EXECUTIVE DIRECTOR OF THE INTERNATIONAL CARWASH
ASSOCIATION

COMPETITION BREEDS IMPROVEMENT SAYS MR TRANTHAM HE SAYS HE KNOWS OF ONE
OWNER WHO SPENT 150000 ON AN AWNING AS A QUICK WAY TO GIVE HIS BUILDING A
FACELIFT ANOTHER WHO INSTALLED NEON LIGHTING ALONG WALKWAYS AND OTHERS WHO
OPENED GROCERY STORES OR NOVELTY SHOPS

EDWIN E BOBROW PRESIDENT OF BOBROW CONSULTING GROUP INC SAYS BUSINESSES
HAVE BEGUN ENTERTAINING BECAUSE OF CROWDED MARKETS COUPLED WITH A WEAK
ECONOMY IT IS THE TREND OF THE FUTURE MR BOBROW SAYS IT WAS CAUSED BY
A COMBINATION OF COMPETITION AND THE ECONOMY AND A NEED TO STAND OUT FROM
THE COMPETITION FOR SOME STORES IT'S PRICE AND ASSORTMENT THAT WILL
DIFFERENTIATE THEM AND FOR OTHERS IT'S THE ENTERTAINMENT EXPERIENCE

SNARING CUSTOMERS BY STAVING OFF BOREDOM IS NOTHING NEW OF COURSE
LAUNDROMATS HAVE BEEN PROVIDING DIVERSIONS FOR YEARS THE CLEAN DUDS INC
FRANCHISE CHAIN SET THE TREND WHEN IT OPENED ITS FIRST DUDS N' SUDS OUTLET
IN AMES IOWA IN 1983 THAT SERVED BEER AND SNACKS AT A BAR STARTED BY AN
IOWA STATE UNIVERSITY STUDENT DUDS TODAY HAS ABOUT 70 LOCATIONS IN THE
US CANADA NORTHERN IRELAND AND LONDON

BUT DUDS N' SUDS IS JUST THE TIP OF THE ICEBERG FRANK J VITEK PRESIDENT
OF THE COIN LAUNDRY ASSOCIATION SAYS 90 OF LAUNDROMATS CURRENTLY PROVIDE
ANCILLARY ACTIVITIES UP FROM 40 IN THE MID1980S

SOME LAUNDROMATS MAKE IT SEEM AS THOUGH WASHING CLOTHES IS AN AFTERTHOUGHT
TO HAVING FUN THEY OFFER EVERYTHING FROM SITDOWN RESTAURANTS VIDEO
RENTALS TANNING SALONS AND EXERCISE ROOMS TO INDOOR PLAYGROUNDS FOR THE
KIDS AND EVEN INFORMAL DATING SERVICES TO INTRODUCE FELLOW LAUNDERERS TO ONE
ANOTHER THE BRAINWASH LAUNDROMAT IN SAN FRANCISCO FOR INSTANCE HAS A
49SEAT CAFE WITH A JUKEBOX A LIVEMUSIC NIGHT POETRY READINGS AND HAPPY
HOURS FOR CUSTOMERS WHO LIKE TO BOOZE WHILE BLEACHING

OF COURSE AMENITIES DON'T GUARANTEE SUCCESS THE CORE BUSINESS STILL HAS TO
PROVIDE QUALITY SERVICE IF YOU DON'T GET THEIR CLOTHES CLEAN IT WON'T
MATTER IF YOU PUT A BEER IN THEIR HAND SAYS MR VITEK

BUT THE EXTRAS BRING IN MORE PEOPLE SOME ESTABLISHMENTS ARE EVEN MANAGING
TO INCREASE BUSINESS WITH LITTLE MORE THAN A GOOD SPRUCING UP A SIMPLE
STRATEGY TO BE SURE BUT ONE THAT WORKS

WHEN GAIL LEONARDO SUNDLING TOOK OVER HER FAMILY'S DELMAR NY SHOEREPAIR
STORE SOME YEARS BACK SHE SAYS SHOEBOXES WERE STACKED TO THE CEILING
AROUND THE PERIMETER OF THE STORE AND UNINSPIRING GRAY AND ORANGE
MOLDEDPLASTIC CHAIRS PROVIDED SEATING

AFTER ABOUT 2000 WORTH OF DOITYOURSELF RENOVATIONS THE DELMAR BOOTERY
TODAY MORE CLOSELY RESEMBLES A LIVING ROOM DECORATED WITH A BLUE AND
BURGUNDY MOTIF RETOUCHED ANTIQUE CHAIRS AND VICTORIANSTYLE DOORS AT THE
ENTRANCE

MS SUNDLING SAYS THE UPSCALING HAS BOOSTED REVENUE THERE HAD TO BE AN
IMAGE CHANGE ESPECIALLY FOR TODAY'S BUYER SHE SAYS THERE HAS TO BE A
HOOK TO BRING THEM IN

MITCHELL LEBOVIC EDITOR OF SHOE SERVICE MAGAZINE A TRADE PUBLICATION SAYS
MS SUNDLING'S SHOP ISN'T AN ISOLATED CASE THE REASON WHY THEY MAKE THE
CHOICE TO RENOVATE IS TO MAKE SHOE REPAIR MORE LIKE ANY OTHER RETAIL STORE
OF THE '90S MR LEBOVIC SAYS

SHOEREPAIR SHOPS AREN'T THE ONLY SECTOR TO FEEL THE NEED TO SPRUCE UP THEIR
ESTABLISHMENT FOR SOME SPECIALIZED AUTOMOTIVE SERVICES SUCH AS QUICKLUBE
AND OILCHANGE CENTERS AESTHETIC IMPROVEMENTS HAVE HELPED ERASE THE
STEREOTYPE OF THE GREASY GARAGE WITH PINUPS PAPERING THE WALLS

OIL EXPRESS NATIONAL INC A QUICKLUBE CHAIN IN CHICAGO FOR EXAMPLE
STARTED INSTALLING WHITEPORCELAINTILE FLOORS IN WORK AREAS AND PAINTING
WALLS AND CEILINGS WHITE IN ALL 52 OF ITS STORES CURRENTLY 22 OF THE
CORPORATEOWNED STORES ARE COMPLETELY REDECORATED WITH FRANCHISEES IN THE
PROCESS OF RENOVATION

BEFORE THE FACELIFT AT OIL EXPRESS'S DARIEN ILL LOCATION GRIMY WHITE
PAINT FLAKED OFF THE CEILINGS THE CONCRETE FLOOR WAS PAINTED A DINGY YELLOW
AND UGLY STRIPED YELLOW WALLPAPER COVERED THE WALLS IN THE WAITING ROOM
OWNERMANAGER DAVE RARDIN SAYS AFTER THE RENOVATIONS HOWEVER MR RARDIN
SAYS BUSINESS PICKED UP BRISKLY

SUCH CLEANUPS CLEARLY GIVE A BUSINESS A COMPETITIVE EDGE IN A SATURATED
MARKET SAYS LARRY NORTHUP EXECUTIVE DIRECTOR OF THE CONVENIENT AUTOMOTIVE
SERVICES INSTITUTE

UNDOUBTEDLY THERE IS A GREAT DEAL MORE COMPETITION IN THE PAST THREE TO
FIVE YEARS MR NORTHUP SAYS THAT GIVES OWNERS THE ADDED IMPETUS TO CLEAN
THEIR IMAGE UP AND HELP IMPROVE THE PERCEPTION CUSTOMERS HAVE OF THEIR
BUSINESS 9307130022 930713 PEPPERAND SALT

IT'S THE OWNERS WHO NEED NINE LIVES

I TOO CAN'T READ MY WRITING 9307130021 930713 WHO'S NEWS UNITED
RETAIL GROUP INC

UNITED RETAIL GROUP INC ROCHELLE PARK NJ GEORGE R REMETA 44 YEARS
OLD A DIRECTOR OF THIS OPERATOR OF WOMEN'S CLOTHING STORE CHAINS WAS NAMED
VICE CHAIRMAN A NEWLY CREATED POSITION HE CONTINUES AS CHIEF FINANCIAL
OFFICER 9307130020 930713 LETTERS TO THE EDITOR YOU GOT CLIPPED

AMY GAMERMAN JUNE 24 LEISURE & ARTS RESOLVED MY DILEMMA OVER WHETHER TO
CHOOSE CRISTOPHE OR FEKKAI FOR A NEW LOOK NEITHER HOW CAN CRISTOPHE LONG
LOCKS FLOWING TELL ANYONE TO CUT THEIR HAIR SHORT AS FOR FEKKAI'S JUNE
CLEAVER LOOK FOR HILLARY MY OLD BARBER LOUIE FROM CLEVELAND SCISSORS
FLYING AND SHOP INELEGANTLY SMELLING OF CIGAR SMOKE AND LAST NIGHT'S CARD
GAME COULD HAVE DONE BETTER

AMY I AM GLAD YOUR IRREPRESSIBLE CURLS RETURNED THE MORNING AFTER DON'T
FORSAKE THEM EVER AGAIN NO ONE NAMED CRISTOPHE OR ANY OTHER PSEUDOARTISTIC
HAIRDRESSER CAN DO BETTER 9307130019 930713 WHO'S NEWS AMERICA ONLINE
INC

AMERICA ONLINE INC VIENNA VA THIS PROVIDER OF ONLINE DATA SERVICES
TO CONSUMERS APPOINTED JOHN L DAVIES 43 YEARS OLD TO THE NEW POST OF
SENIOR VICE PRESIDENT OVERSEEING MARKETING AND EDITORIAL FUNCTIONS AND
THREE NEW STRATEGIC BUSINESS UNITS HE WAS MANAGING DIRECTOR OF CITICORP'S
CONSUMER FINANCIAL SERVICES BUSINESS IN LONDON 9307130017 930713
COMMODITIES WORLD PETROLEUM PRICES INCREASE ON UNCERTAINTY OVER WHETHER
UN WILL ALLOW IRAQ TO SELL OIL  BY JAMES TANNER STAFF REPORTER
OF THE WALL STREET JOURNAL

WORLD PETROLEUM PRICES IN A NEAR FREEFALL SINCE LAST MONTH'S OPEC MEETING
SUDDENLY FIRMED ON RENEWED UNCERTAINTIES OVER POSSIBLE OIL EXPORTS BY IRAQ

ON THE NEW YORK MERCANTILE EXCHANGE WHERE SETTLEMENT PRICES OF THE
NEARMONTH CRUDE CONTRACT HAD FALLEN LAST WEEK TO A THREEYEAR LOW THE
AUGUST CONTRACT SETTLED AT 1810 A BARREL UP 21 CENTS FROM FRIDAY'S CLOSE

SIMILAR GAINS TOOK PLACE IN LONDON TRADING BRENT BLEND CRUDE FUTURES WERE
UP 15 CENTS TO 24 CENTS A BARREL ON LONDON'S INTERNATIONAL PETROLEUM
EXCHANGE

TRADERS SAID A TECHNICAL BOUNCE IN OIL PRICES WAS DUE AFTER THE RECENT
SELLOFF THE MARKET GOT A LITTLE OVERSOLD LAST WEEK AND IS TRYING TO
BOTTOM OUT HERE SAID JACK O'DEA MANAGER OF ENERGY FUTURES FOR DEAN WITTER
REYNOLDS INC STILL HE SAID IRAQ WAS A FACTOR IN THE PRICE REBOUND

TALKS BETWEEN IRAQ AND THE UNITED NATIONS ON A ONETIME EMERGENCY SALE OF
16 BILLION IN IRAQI OIL WHICH HAD SENT WAVES OF BEARISH SENTIMENT THROUGH
THE OIL MARKET WHEN THEY OPENED LAST WEEK CONTINUED FOR THE FOURTH DAY IN
NEW YORK THERE WERE NO NEW DEVELOPMENTS FROM THE TALKS DURING TRADING
HOURS

BUT NEW TENSIONS BETWEEN BAGHDAD AND THE UN WERE RAISED OVER THE WEEKEND
BY IRAQ'S APPARENT UNWILLINGNESS TO COOPERATE WITH MISSILESITE INSPECTORS
THE DISPUTE WAS OVER THE SEALING OF EQUIPMENT AT A MISSILE TEST SITE OUTSIDE
BAGHDAD

UN OFFICIALS SAID THE DISPUTE SHOULDN'T HAVE ANY EFFECT ON THE OILSALE
TALKS NEVERTHELESS IT REVIVED SKEPTICISM OVER ANY IMMINENT SALE OF IRAQI
OIL AND TRIGGERED A WAVE OF BUYING BY TRADERS TO COVER PREVIOUS SALES THEY
HAD MADE ON EXPECTATIONS PRICES WOULD CONTINUE TO FALL

HELPING TO DRIVE DOWN PRICES IN RECENT DAYS HAS BEEN THE FEAR THAT ANY SALE
OF IRAQI OIL WOULD ADD TO THE SUPPLY GLUT THAT ALREADY HANGS OVER THE OIL
MARKET MEANWHILE THERE WERE NEW REPORTS THAT THE ORGANIZATION OF PETROLEUM
EXPORTING COUNTRIES CONTINUES TO PRODUCE WELL ABOVE ITS THIRDQUARTER
CEILING OF 236 MILLION BARRELS A DAY

ACCORDING TO THE MIDDLE EAST ECONOMIC SURVEY OPEC'S PRODUCTION AVERAGED
244 MILLION BARRELS A DAY LAST MONTH THAT IS IN LINE WITH OTHER INDUSTRY
ESTIMATES WHICH PLACE CURRENT OPEC OUTPUT AT AROUND 800000 BARRELS A DAY
ABOVE THE CEILING

DEMAND FOR OPEC OIL IS EXPECTED TO RISE HOWEVER AND EXCEED 25 MILLION
BARRELS A DAY BY THE FOURTH QUARTER IF NOT SOONER ALSO MANY OIL TRADERS
CONCEDE THAT SOME SALES OF IRAQI CRUDE ALREADY HAVE BEEN DISCOUNTED BY THE
OIL MARKET

STILL WHENEVER IRAQ DOES EXPORT OIL AGAIN IT LIKELY WILL HAVE TO DISCOUNT
PRICES TO BREAK INTO THE MARKET AS A RESULT IRAQ MAY HAVE TO SELL MORE
THAN THE VOLUMES GENERALLY ESTIMATED 500000 TO 600000 BARRELS A DAY FOR
SIX MONTHS TO ACHIEVE THE 16 BILLION

NORMAN HIGBY A MENLO PARK CALIF ENERGY FORECASTER INSISTED IRAQ MAY
HAVE TO SELL ITS OIL AS LOW AS 8 TO 10 A BARREL THAT WOULD REQUIRE THE
IRAQIS TO SELL 500000 BARRELS A DAY FOR TWO YEARS NOT THE SIX MONTHS TIME
FRAME THE UN WANTS TO GIVE THEM HE SAID

IN OTHER COMMODITY MARKETS YESTERDAY

PRECIOUS METALS GOLD FUTURES PRICES MOVED HIGHER AMID FRESH BUYING BY
COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS MONEY TRADERS SAID VOLUME
WAS LIGHT THE BUYING BEGAN OVERSEAS WITH MIDDLE EAST SYNDICATES SAID TO BE
ACTIVE PURCHASERS DEALERS SAID TRADERS WILL BE WATCHING FOR TOMORROW'S
US PRODUCER PRICE REPORT FOR JUNE SAID BERNARD SAVAIKO ANALYST WITH
PAINEWEBBER THE MARKET'S OVERALL TONE APPEARS TO BE STEADY AFTER SEVERAL
DAYS OF SOFTER PRICES HE SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR
AUGUST DELIVERY SETTLED 260 HIGHER AT 39490 AN OUNCE SILVER FOR
SEPTEMBER DELIVERY JUMPED 57 CENTS TO 5085 AN OUNCE ON THE NEW YORK
MERCANTILE EXCHANGE PLATINUM FOR OCTOBER DELIVERY SURGED 530 TO 41140
AN OUNCE WHILE PALLADIUM FOR SEPTEMBER DELIVERY EDGED UP 75 CENTS TO
13750 AN OUNCE

COPPER SEPTEMBER FUTURES PRICES FELL 170 CENTS TO 8620 CENTS A POUND ON
THE COMMODITY EXCHANGE TRADERS NOTED THAT CHINESE DEMAND FOR THE BASE METAL
APPEARED TO HAVE FADED SHARPLY THERE'S A LACK OF CHINESE INTEREST SAID
WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IN NEW YORK
THE RECENT RALLY WAS BASED ON FLUFF PHYSICAL DEMAND HAS NOT IMPROVED HE
SAID 9307130016 930713 MARKETING & MEDIA CHANGE IN FUNDING IS URGED
BY PANEL IN PUBLIC TV STUDY  BY ELIZABETH JENSEN STAFF REPORTER
OF THE WALL STREET JOURNAL

NEW YORK A PANEL EVALUATING THE FUTURE OF PUBLIC BROADCASTING RECOMMENDS
THAT LOCAL PUBLIC TELEVISION STATIONS BE CUT OFF FROM FEDERAL FUNDS TO
ELIMINATE OVERHEAD COSTS AND PROGRAMMING DUPLICATION AND IMPROVE PROGRAMMING
QUALITY

THE REPORT QUALITY TIME WILL BE RELEASED TODAY BY THE TWENTIETH CENTURY
FUND A NONPARTISAN RESEARCH FOUNDATION THAT ASSIGNED ITSELF TO LOOK AT THE
25YEAROLD PUBLIC TELEVISION SYSTEM IN LIGHT OF INCREASING COMPETITION FROM
CABLE CHANNELS AND POLITICAL BICKERING OVER PROGRAMMING

THE PANEL RECOMMENDS THAT OVERALL FEDERAL FUNDING FOR PUBLIC TV SHOULD BE
INCREASED WITH THE NEW MONEY COMING FROM NONTAXPAYER SOURCES SUCH AS AN
AUCTION OF THE COMMERCIAL BROADCASTING SPECTRUM WHICH TV STATIONS NOW USE
FOR FREE IF THEY HAVE A BROADCAST LICENSE COMMERCIAL STATIONS COULD ALSO
PAY A SPECTRUM USAGE FEE THE PANEL SUGGESTS

IN ITS MOST CONTROVERSIAL RECOMMENDATION THE REPORT THE WORK OF A
21MEMBER TASK FORCE CHAIRED BY BROWN UNIVERSITY PRESIDENT VARTAN GREGORIAN
 CONCLUDES THAT FEDERAL FUNDS FOR PUBLIC TELEVISION WHICH TOTALED 251
MILLION IN 1992 SHOULD GO ALMOST ENTIRELY TO NATIONAL PROGRAMMING
PRODUCTION IN ORDER TO IMPROVE THE QUALITY AND DIVERSITY OF THE OFFERINGS
AND ALLOW PUBLIC TV TO BETTER COMPETE WITH COMMERCIAL TV

FEDERAL FUNDING FOR THE OPERATIONS OF THE 351 LOCAL PUBLIC STATIONS SHOULD
BE ELIMINATED THE REPORT RECOMMENDS WITH THE STATIONS INSTEAD RELYING ON
LOCAL COMMUNITIES FOR FUNDING THE RECOMMENDATION WAS OPPOSED BY SOME OF THE
PANEL'S MEMBERS INCLUDING HENRY R KRAVIS FOUNDING PARTNER OF KOHLBERG
KRAVIS ROBERTS & CO AND CHAIRMAN OF THE BOARD OF NEW YORK'S PUBLIC STATION
WNET

LAST YEAR LOCAL STATIONS RECEIVED ABOUT 50 OF THE 251 MILLION FEDERAL
ALLOCATION OF THE 12 BILLION TOTAL SPENT IN THE PUBLIC TELEVISION SYSTEM
IN 1992 ABOUT 75 WENT TO COVER THE COST OF STATION OPERATIONS WITH THE
REST GOING TOWARD THE PRODUCTION OF NATIONAL PROGRAMMING THE REPORT SAYS
THE CORPORATION FOR PUBLIC BROADCASTING A NONPROFIT ORGANIZATION RECEIVES
AND DISBURSES THE FEDERAL FUNDS AND OVERSEES PUBLIC TV AND RADIO

MORE THAN 60 OF THE CURRENT NATIONAL PUBLIC TV PROGRAM SCHEDULE IS PRODUCED
BY THREE LARGE PUBLIC TV STATIONS A ROLE THAT SHOULD BE REDUCED IN ORDER TO
ALLOW MORE DIVERSITY FROM OTHER PROGRAM PRODUCERS THE REPORT RECOMMENDS

EDUCATIONAL PROGRAMMING SHOULD BE INCREASED ALONG WITH NEW SHOWS FOR THE
SIX TO 11YEAROLD AGE GROUP THE REPORT SAYS AND THERE SHOULD BE GREATER
USE OF TECHNOLOGIES SUCH AS VIDEOCASSETTES AND INTERACTIVE DELIVERY SYSTEMS
FOR GETTING INSTRUCTIONAL PROGRAMMING TO SCHOOLS 9307130015 930713
INTERNATIONAL UN ATTACKS SOMALI WARLORD CIVILIANS KILLED  
NEW VIOLENCE COMPLICATES UNITED NATIONS MISSION MOBS SLAY JOURNALISTS 
 BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE SEEMINGLY STALLED INTERNATIONAL EFFORT TO END THE CHAOS IN
SOMALIA WAS MARKED BY NEW VIOLENCE YESTERDAY

US COBRA HELICOPTER GUNSHIPS UNDER UNITED NATIONS COMMAND ATTACKED
POSITIONS HELD BY RENEGADE WARLORD MOHAMED FARRAH AIDID IN THE CAPITAL
MOGADISHU SUPPORTERS OF THE WARLORD SAID 73 SOMALI CIVILIANS WERE KILLED
UN OFFICIALS PUT THE DEATH TOLL AT 13

ANGERED BY THE HELICOPTER STRIKE A MOB ATTACKED A GROUP OF WESTERN
JOURNALISTS KILLING TWO AND LEAVING TWO OTHERS MISSING AND FEARED DEAD

WHEN PRESIDENT BUSH ORDERED US TROOPS INTO SOMALIA HE PROMISED A LIMITED
ORDERLY OPERATION US TROOPS WOULD QUELL THE FIGHTING BETWEEN LOCAL
WARLORDS PAVING THE WAY FOR A UNLED HUMANITARIAN EFFORT SEVEN MONTHS
LATER SOMALIA SEEMS AS FAR FROM PEACE AS EVER

DESPITE EARLY EXPECTATIONS THE UN APPEARS TRAPPED IN SOMALIA AS IT TRIES
TO END STARVATION AND CHAOS THE COMPLICATED SITUATION ILLUSTRATES HOW
DIFFICULT OPERATIONS ARE BECOMING AS THE UN MOVES FROM ITS RELATIVELY
PASSIVE COLD WAR ROLE OF PEACEKEEPING TO THE MORE ACTIVE ROLE OF
PEACEMAKING

THE DOWNSIDE OF PEACE ENFORCEMENT OR PEACEKEEPING PLUS IS THAT THE UN
RUNS THE RISK OF BECOMING SIMPLY ANOTHER SOMALIAN FACTION WARNS JOHN
BOLTON WHO HEADED THE STATE DEPARTMENT'S INTERNATIONAL ORGANIZATIONS BUREAU
IN THE BUSH ADMINISTRATION HOW LONG WILL IT TAKE FOR THE UN TO
REESTABLISH A CIVIL SOCIETY THERE IF IT'S NOT SEEN BY ALL PARTIES AS AN
HONEST BROKER HE ASKS

CLINTON ADMINISTRATION OFFICIALS ACKNOWLEDGING THE PROBLEMS REMAIN HOPEFUL
THAT THE SOMALIA MISSION'S OBJECTIVE CAN BE ACHIEVED US OFFICIALS SEE THE
SOMALIA OPERATION AS HAVING THREE PHASES

IN THE INITIAL PHASE THE US MILITARY TRIED TO ESTABLISH ORDER PHASE TWO
BEGAN IN MAY WHEN THE US TURNED OVER COMMAND TO A MULTINATIONAL UN
FORCE ABOUT 4000 OF THE 19000 TROOPS IN THE FORCE ARE AMERICAN IN THE
FINAL PHASE THE UN WILL RETURN SOMALIA TO CIVILIAN RULE

OFFICIALS CONCEDE THAT MOVING FROM PHASE TWO TO THREE WON'T BE EASY THE
UN'S RECORD HAS BEEN SPOTTY IN MOVING FROM PHASE TWO TO PHASE THREE IN
OTHER PEACEMAKING OPERATIONS IN ANGOLA FOR INSTANCE THE UN MONITORED AN
ELECTION BUT THE VIOLENCE OF CIVIL WAR WAS REIGNITED WHEN THE OUTCOME OF
THE VOTE WAS DISPUTED IN ITS LARGEST OPERATION TO DATE IN CAMBODIA THE
UN SUCCESSFULLY SUPERVISED AN ELECTION IN MAY BUT THERE ARE SOME CONCERNS
THAT THERE COULD BE AN OUTBREAK OF FIGHTING WHEN THE UN REMOVES ITS FORCES
IN THE NEXT FEW MONTHS ON THE OTHER HAND THE UN HAS PLAYED A SUCCESSFUL
ROLE IN PROMOTING ELECTIONS AND ORDER IN EL SALVADOR NICARAGUA AND NAMIBIA

MEANWHILE UN SECRETARY GENERAL BOUTROS BOUTROSGHALI SCOLDED ITALY 
WITHOUT NAMING THAT NATION BECAUSE ITS TROOPS AREN'T FOLLOWING ORDERS
FROM THE UN CENTRAL MILITARY COMMAND IN A STATEMENT ISSUED HOURS AFTER
THE US HELICOPTER ATTACK ROME WHICH HAS 2600 TROOPS IN SOMALIA A
FORMER COLONY HAD CALLED FOR THE SUSPENSION OF MILITARY OPERATIONS AND A
REVIEW OF THE OVERALL MISSION

ITALY IS ONLY ONE OF SEVERAL NATIONS WITH TROOPS IN SOMALIA THAT SOMETIMES
FOLLOW ORDERS FROM THEIR OWN CAPITALS RATHER THAN FROM THE UN COMMAND
SUCH ACTIONS THREATEN THE VIABILITY OF THE UN PEACEMAKING FORCE A
SPOKESMAN FOR MR BOUTROSGHALI SAID YESTERDAY THAT ALL MILITARY UNITS IN
SOMALIA ARE UNDER THE FORCE COMMANDER AND THEY ARE SUPPOSED TO FOLLOW HIS
ORDERS  THAT IS VERY CLEAR

ITALY HAS PUSHED UNSUCCESSFULLY FOR A TOP SLOT IN THE UN MILITARY COMMAND
STRUCTURE SINCE THREE OF ITS SOLDIERS WERE KILLED IN AN AMBUSH BY GUNMEN
THIS MONTH ACCORDING TO NEWS SERVICE REPORTS THE SENIOR UN COMMANDER IN
SOMALIA IS A TURK AND HIS DEPUTY IS AN AMERICAN 9307130014 930713 RUSSIA
SNICKERS AFTER MARS INVADES  BY NEELA BANERJEE STAFF REPORTER OF
THE WALL STREET JOURNAL

MOSCOW A GANG OF URCHINS SHOWS THE SUCCESS OF MARS INC IN RUSSIA

TIRED OF BREAKING BOTTLES AND HALFHEARTEDLY MUGGING TOURISTS THE TWO DOZEN
RAGAMUFFINS TAKE A SNICKERS BREAK THE KIDS GOBBLE THE CHOCOLATE AND RESUME
WORK THIS TIME TRIPPING A BUSINESSMAN AND SCAMPERING AWAY WITH HIS
BRIEFCASE

MARS PROBABLY DIDN'T HAVE THIS SCENARIO IN MIND WHEN IT PUT UP BILLBOARDS
HERE THAT READ DELO ILI IGRA SNEEKERZ TRANSLATION WORK OR PLAY IT'S
SNICKERS BUT MARS IS RESHAPING THE APPETITES OF RUSSIANS FROM STREET
TOUGHS TO EXECUTIVES MOST OF WHOM HAD NEVER SEEN A MILKY WAY UNTIL
RECENTLY

THE DISINTEGRATION OF THE SOVIET UNION THREW OPEN A VAST RUSSIAN MARKET
HUNGRY FOR CONSUMER GOODS ESPECIALLY IMPORTED GOODS THAT HAD BEEN BANNED
UNDER COMMUNISM YET FOREIGN COMPANIES FACE A VOLATILE POLITICAL LANDSCAPE
IN RUSSIA WHERE LAWS GOVERNING BUSINESS CHANGE ALMOST WEEKLY

BUT MARS STORMED IN ABOUT 18 MONTHS AGO AND NOW VIRTUALLY OWNS THE CHOCOLATE
MARKET I'M FULL OF ADMIRATION FOR WHAT MARS HAS DONE IN RUSSIA SAYS
YSBRAND KLEYN SALESDEVELOPMENT DIRECTOR OF MARS RIVAL CADBURY
INTERNATIONAL LTD A UNIT OF CADBURY SCHWEPPES PLC EVEN TO MARS THIS
MUST BE A SURPRISE SNICKERS HAS BEEN A RUNAWAY SUCCESS

MARS BARRELED OVER RUSSIA'S ROADBLOCKS WITH GUTSY MARKETING AND
DISTRIBUTION WHILE MANY WESTERN ENTERPRISES OFFER GOODS ONLY FOR HARD
CURRENCY MARS SELLS ITS PRODUCTS FOR RUBLES ITS CANDY BARS COST ABOUT 300
RUBLES 25 CENTS IN MOSCOW AND ARE AMONG THE MOST AFFORDABLE WESTERN STATUS
SYMBOLS ITS ADVERTISING BLITZ HAS MADE SNEEKERZ A RUSSIAN WORD AND IN A
SPRAWLING COUNTRY WITH A THREADBARE INFRASTRUCTURE MARS KEEPS SHELVES
ACROSS RUSSIA STOCKED WITH ITS GOODS

MARS'S STRATEGY COULD WELL SERVE OTHER FOREIGN COMPANIES INTERESTED IN
RUSSIA AS A RECIPE FOR SUCCESS MARS HAS DONE ITS HOMEWORK SAYS ALEXANDER
ZAYONTS COMMERCIAL DIRECTOR OF KOMMEX A MOSCOW MARS WHOLESALER ANYONE
CAN BE SUCCESSFUL HERE LIKE MARS IF THEY HAVE QUALITY PRODUCTS AND SPEND
ABOUT 100000 IN THE FIRST THREE MONTHS ON ADVERTISING

WHEN THE SOVIET UNION EXPIRED SO DID STATE SUBSIDIES TO CONFECTIONERS WHO
LACKED THE HARD CURRENCY TO PAY FOR THE IMPORTED COCOA AND SUGAR ESSENTIAL
TO CHOCOLATE PRODUCTION FACTORIES SAT IDLE LOCALS GRUMBLED ABOUT THE HARD
CANDIES AND GRAINY TURKISH CHOCOLATE GROWING STALE IN STORES BY 1992 THERE
WAS NO LOCALLY MADE CHOCOLATE IN RUSSIA

MARS WHICH DECLINED TO BE INTERVIEWED EMBARKED ON A GLITZY AD CAMPAIGN
EVEN BEFORE ITS CHOCOLATE APPEARED IN STORES FULLCOLOR BILLBOARDS ON
MOSCOW'S MAIN STREET TVERSKAYA MADE RUSSIANS CURIOUS ABOUT THE CHOCOLATE
THAT MELTS IN YOUR MOUTH NOT IN YOUR HANDS ACTUALLY DISTRIBUTORS HERE
SAY M&MS DON'T SELL AS WELL AS OTHER MARS CONFECTIONS BECAUSE LOCALS DON'T
FIND THEM AS FILLING DISTINCTLY WESTERN TELEVISION COMMERCIALS SHOW A HIP
YOUNG MAN ENTHUSIASTICALLY BITING INTO A SNICKERS BAR TO THE ROLLING STONES
SONG SATISFACTION A BARRAGE OF COMMERCIALS DURING TELECASTS OF THE 1992
SUMMER OLYMPICS SENT DEMAND SOARING

THE ADVERTISING CREATES THIS IMAGE THAT TEMPTS YOU TO TRY THE CHOCOLATE
SAYS IRINA GVOZDIKA WORKING IN A KIOSK STUFFED WITH CIGARETTES LIQUOR AND
MARS'S CANDY

DOWN THE DUSTY SIDEWALK FROM MS GVOZDIKA A WOMAN BEHIND A TABLE SELLS THE
COMPANY'S TWIX BARS TO TEENAGE BOYS HOPING TO IMPRESS THEIR GIRLFRIENDS WITH
AMERICAN TREATS

KENTAVR ONE OF THREE MARS DISTRIBUTORS IN MOSCOW SAYS ITS SALES RAN 5
MILLION A MONTH FROM DECEMBER TO MARCH AND IT ESTIMATES MARS'S MONTHLY
SALES IN RUSSIA TO BE 10 MILLION TO 20 MILLION

MARS PROBABLY ISN'T MAKING LOTS OF MONEY RIGHT NOW BUT IT'S A TREMENDOUSLY
GOOD START SAYS LISBETH ECHEANDIA PUBLISHER OF CONFECTIONER MAGAZINE
THEY'RE TAKING A CHANCE TO BUILD FOR THE FUTURE

MARS WENT GLOBAL 60 YEARS AGO WHEN FOUNDER FORREST MARS SET UP THE COMPANY'S
EUROPEAN BEACHHEAD IN SLOUGH ENGLAND IN THE 1970S MARS FOCUSED MORE
ENERGY OVERSEAS AS THE BATTLE WITH HERSHEY FOODS CORP INTENSIFIED FOR
PRIMACY IN THE US

HERSHEY TROUBLED BY ITS DEPENDENCE ON THE US MARKET HAS ALSO BEEN
SEEKING OVERSEAS EXPANSION BUT IN WESTERN EUROPE NOT RUSSIA SWISSBASED
NESTLE SA HAS BEEN IN RUSSIA FOR YEARS BUT IS PUSHING OTHER PRODUCTS SUCH
AS BABY FORMULA

MARS'S SUCCESS SO FAR IS DRAWING OTHER COMPETITION CADBURY OPENED ITS
DOORS IN RUSSIA IN DECEMBER AFTER TRACKING MARS'S INROADS CADBURY IS
COPYING MARS BY ADVERTISING AGGRESSIVELY AND SIGNING UP DISTRIBUTORS SAYS
OLEG KOVALYONOK KENTAVR'S MANAGER FOR MARS PRODUCTS BUT HE DECLARES
CONFIDENTLY ANYONE WHO COMES NOW WON'T HAVE A CHANCE TO GRAB THE MARKET
FROM MARS 9307130013 930713 MESA AIR TRAFFIC RISES

FARMINGTON NM MESA AIRLINES SAID JUNE TRAFFIC INCREASED 76 TO 806
MILLION REVENUE PASSENGER MILES FROM 749 MILLION THE YEAR BEFORE LOAD
FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 522 FROM 542 A
REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN A MILE 9307130012
930713 LETTERS TO THE EDITOR IT WAS OUR DUTY TO IMPOSE DUTIES

JAMES BOVARD'S JUNE 23 EDITORIAL PAGE ARTICLE STEEL RULINGS DUMP ON
AMERICA FOCUSING ON THE COMMERCE DEPARTMENT'S DECISIONS TO IMPOSE DUTIES
ON STEEL IMPORTS FROM 20 COUNTRIES SHOWS A LACK OF UNDERSTANDING OF THE
PURPOSE AND IMPLEMENTATION OF US TRADE LAW

THE DECISIONS INVOLVED IMPORTS OF STEEL THAT WERE SUBSIDIZED OR SOLD IN THE
US AT LESS THAN FAIR VALUE DUMPING COMMERCE'S INVESTIGATIONS AS ARE
ALL SUCH PROBES ARE HIGHLY TECHNICAL AND TRANSPARENT AND FOLLOW STRICT
LEGAL PROCEDURES THE ADMINISTRATION'S TRADE POLICY LIES IN THE LAWS
THEMSELVES AND A COMMITMENT TO ENFORCE THEM MR BOVARD'S CHARGE THAT
APPROPRIATE ACTIONS THAT FOLLOW THE FACTS REFLECT CAREER EMPLOYEES BEING
CAPTURED BY DOMESTIC INTERESTS SIMPLY REFLECTS HIS OWN BIAS AND
MISUNDERSTANDING OF THE ISSUES

PROTECTION FROM UNFAIR TRADE PRACTICES IS A RIGHT GRANTED TO ALL DOMESTIC
INDUSTRIES AND COMMERCE IS NOT ALLOWED ANY DISCRETION IN IMPLEMENTING THESE
LAWS IF A DOMESTIC INDUSTRY PROVIDES US WITH REASONABLE EVIDENCE THAT A
FOREIGN MANUFACTURER HAS RECEIVED SUBSIDIES OR THAT DUMPING IS OCCURRING AS
IT DID WITH STEEL WE MUST CONDUCT AN INVESTIGATION ACCORDING TO LAW
DEPARTMENTAL REGULATIONS AND ADMINISTRATIVE PRECEDENT AND ALL OUR ACTIONS
ARE SUBJECT TO JUDICIAL REVIEW WHICH GRANTS IMPORTERS AND FOREIGN PRODUCERS
THE RIGHT TO CHALLENGE OUR ACTIONS IN COURT

MR BOVARD HAS CHALLENGED COMMERCE SECRETARY RONALD H BROWN'S STATEMENT
THAT INFORMATION USED IN MAKING OUR FINAL DETERMINATIONS WAS VERIFIED MR
BOVARD IS WRONG ALL INFORMATION SUPPLIED BY FOREIGN FIRMS WAS PAINSTAKINGLY
VERIFIED ONLY WHEN FOREIGN PRODUCERS COULD NOT OR WOULD NOT PROVIDE US WITH
THE NECESSARY INPUT DID WE RELY ON MATERIAL FROM OTHER SOURCES BEST
INFORMATION AVAILABLE DATA WAS SUPPORTED BY SWORN CIFICATIONS AND
AFFIDAVITS IT WAS NOT MAKE BELIEVE AS MR BOVARD CLAIMED FAILURE TO USE
THE BEST INFORMATION AVAILABLE WOULD BE CONTRARY TO LAW AND DENY US
INDUSTRY THE REMEDY TO WHICH IT IS ENTITLED ALSO IN CALCULATING
CONSTRUCTED VALUE THE USE OF 8 FOR PROFIT AND 10 FOR ADMINISTRATIVE
OVERHEAD WHICH MR BOVARD CRITICIZES IS ALSO REQUIRED BY LAW 9307130011
930713 TWA IS EXPECTED TO APPOINT HOWARD CHAIRMAN AND CHIEF EXECUTIVE
OFFICER  BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET
JOURNAL

TRANS WORLD AIRLINES IS EXPECTED TO NAME WILLIAM HOWARD FORMER CHAIRMAN OF
PIEDMONT AVIATION INC TO LEAD TWA IN ITS PLANNED EMERGENCE FROM
BANKRUPTCYLAW PROTECTION THIS SUMMER

THE APPOINTMENT OF THE 71YEAROLD MR HOWARD AS CHAIRMAN AND CHIEF
EXECUTIVE EXPECTED AS EARLY AS TODAY WOULD BE A VICTORY FOR THE AIRLINE'S
HOLDERS WHO HAVE PUSHED FOR AN EXPERIENCED OUTSIDER TO ADD TO THE CURRENT
MANAGEMENT TEAM

THE AIRLINE'S TWO CURRENT COCHIEF EXECUTIVES GLENN ZANDER AND ROBIN
WILSON ARE EXPECTED TO STAY ON IN TOP POSITIONS BUT AN INDIVIDUAL CLOSE TO
THE AIRLINE WHO SAID MR HOWARD'S APPOINTMENT WAS IMMINENT SAID THAT THEIR
EXACT TITLES AND DUTIES WERE STILL BEING DISCUSSED

MR HOWARD WHO WAS SAID TO BE IN TWA'S MOUNT KISCO NY HEADQUARTERS
YESTERDAY COULDN'T BE REACHED FOR COMMENT TWA DECLINED TO COMMENT

THE THREE ARE LIKELY TO BE THE MANAGEMENT DIRECTORS IN A NEW 15MEMBER BOARD
TO OVERSEE THE AIRLINE THE AIRLINE'S CREDITORS WOULD OWN 55 OF THE STOCK
AND CONTROL EIGHT BOARD SEATS UNDER THE COMPANY'S REORGANIZATION PLAN THE
AIRLINE'S LABOR UNIONS WITH 45 OF THE STOCK ARE TO GET FOUR BOARD SEATS

MR HOWARD AN ELDER STATESMAN AMONG FORMER AIRLINE EXECUTIVES IS ALSO
RESPECTED BY AIRLINE LABOR GROUPS HE HAS BEEN ITCHING TO GET BACK INTO THE
BUSINESS EVER SINCE HIS DAYS AT PIEDMONT AVIATION WHICH IS NOW PART OF
USAIR GROUP INC

OVER THE PAST FEW YEARS MR HOWARD'S NAME HAS SURFACED SEVERAL TIMES AS A
CANDIDATE TO LEAD OR TAKE OVER VARIOUS CARRIERS FOR EXAMPLE HE WAS
CONTACTED BY LABOR UNIONS AT UAL CORP'S UNITED AIRLINES IN THEIR FAILED BID
TO ACQUIRE THE CARRIER IN 1990 HE ALSO LED A GROUP IN 1989 THAT TRIED TO
ACQUIRE EASTERN AIRLINES WHEN THAT CARRIER WAS UNDER BANKRUPTCY PROTECTION

HE RESIGNED AS PIEDMONT AVIATION'S CHAIRMAN AND CHIEF EXECUTIVE IN 1987 TO
BE AN ADVISER TO UNITED AIRLINES' PILOTS IN THEIR FIRST BID TO ACQUIRE THE
CARRIER

BUT SOME LABOR GROUPS ALSO PUSHED TO RETAIN MESSRS ZANDER AND WILSON WHO
ARE EXPECTED TO REMAIN COCHIEF EXECUTIVES UNTIL THE COMPANY EMERGES FROM
BANKRUPTCYCOURT PROTECTION ZANDER AND WILSON WILLIAM F COMPTON WHO HEADS
THE PILOTS UNION AND IS ITS DESIGNEE FOR THE BOARD SAID THE TWO WILL
REMAIN IN INFLUENTIAL AND POWERFUL POSITIONS WITH THE COMPANY HE WOULDN'T
COMMENT ON THE NEW CHIEF EXECUTIVE AND SAID AN EMPLOYMENT CONTRACT WITH THE
NEW EXECUTIVE HADN'T BEEN SIGNED AS OF LATE YESTERDAY

TWA BURDENED BY HIGH DEBT AND LOSSES FILED FOR PROTECTION UNDER CHAPTER 11
OF THE FEDERAL BANKRUPTCY CODE JAN 31 1992 CARL ICAHN THE AIRLINE'S
FORMER CHAIRMAN ENDED HIS SEVENYEAR TENURE AT THE TROUBLED COMPANY LAST
JANUARY AFTER AGREEING TO LEND 200 MILLION TO THE AIRLINE AND TO
CONTRIBUTE AS MUCH AS 240 MILLION TO ITS PENSION FUND

COMMITTEES REPRESENTING TWA'S CREDITORS AND LABOR UNIONS HAVE WRANGLED OVER
THE CHOICE OF TOP EXECUTIVES IN RECENT DAYS AS THEY PREPARED FOR A HEARING
SCHEDULED FOR THURSDAY IN US BANKRUPTCY COURT IN WILMINGTON DEL

HOWEVER IT WAS LEARNED THE AIRLINE MIGHT ASK THE JUDGE TO DELAY THE HEARING
FOR ABOUT A MONTH IF THE REORGANIZATION PLAN IS CONFIRMED THE AIRLINE
COULD EMERGE FROM BANKRUPTCY PROTECTION WITHIN TWO WEEKS AFTER THAT

COMMITTEES REPRESENTING TWA'S CREDITORS AND LABOR UNIONS HAVE WRANGLED OVER
THE CHOICE OF TOP EXECUTIVES IN RECENT DAYS AS THEY PREPARED FOR A HEARING
SCHEDULED FOR THURSDAY IN US BANKRUPTCY COURT IN WILMINGTON DEL

HOWEVER IT WAS LEARNED THE AIRLINE MIGHT ASK THE JUDGE TO DELAY THE HEARING
FOR ABOUT A MONTH IF THE REORGANIZATION PLAN IS CONFIRMED THE AIRLINE
COULD EMERGE FROM BANKRUPTCY PROTECTION WITHIN TWO WEEKS AFTER THAT

MAX HOLMES A SALOMON BROTHERS ANALYST WHO FOLLOWS DEBT OF TROUBLED
COMPANIES SAID HE BELIEVES THE PLAN WILL BE CONFIRMED BUT WITH THE TOUGH
TIMES FOR THE INDUSTRY AND THE AIRLINE'S RELATIVELY WEAK ROUTE SYSTEM HE
ADDED I THINK IT'S GOING TO BE VERY TOUGH FOR THEM 9307130010 930713
FOREIGN EXCHANGE DOLLAR RISES AGAINST EUROPE'S CURRENCIES AS TRADERS
SEEK HAVEN FROM EMS STORM  BY XANDER MELLISH SPECIAL TO THE WALL
STREET JOURNAL

NEW YORK THE DOLLAR ENDED MIXED MONDAY GAINING AGAINST EUROPEAN
CURRENCIES AS PLAYERS ESCAPED TENSION WITHIN THE EUROPEAN MONETARY SYSTEM
BUT FALLING BACK SLIGHTLY AFTER A STRONG RALLY AGAINST THE YEN

MEANWHILE THE FRENCH FRANC CONTINUED TO DECLINE AGAINST THE MARK DESPITE
INTERVENTION TO BUY FRANCS BY BOTH FRANCE AND GERMANY AND STRONG STATEMENTS
SUPPORTING THE FRANC FROM THE HEADS OF BOTH COUNTRIES' CENTRAL BANKS

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17305 MARKS UP FROM 17225
MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT
1094 YEN LOWER FROM 10995 YEN STERLING WAS TRADING AT 14770 DOWN FROM
14805

ABOUT NOON ON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10911 YEN AND AT
17319 MARKS

THE DOLLAR MOVED UP STRONGLY AGAINST THE EUROPEAN CURRENCIES IN EARLY
CONTINENTAL TRADING AS LAST WEEK'S SELLOFF OF FRENCH FRANCS FOR MARKS
RESUMED THAT TURMOIL TRADERS SAID CREATED A DESIRE FOR THE DOLLAR AS A
HAVEN FROM THE EUROPEAN STORM

TRADERS SAID THE FRANC'S WEAKNESS COULD BE TRACED TO FRANCE'S RECENT RUSH TO
CUT INTEREST RATES WHICH FELL BELOW GERMANY'S IN JUNE LOWER INTEREST RATES
MAKE A CURRENCY LESS ATTRACTIVE TO INVESTORS BY DECREASING THE RATE OF
RETURN ON DEPOSITS DENOMINATED IN THAT CURRENCY

FRANCE'S ECONOMIC DOLDRUMS INCLUDING SLOW GROWTH AND HIGH UNEMPLOYMENT ARE
SEEN AS ENCOURAGING ITS CENTRAL BANK TO PUMP MONEY INTO THE ECONOMY WITH
FURTHER EASINGS SOON

THE FRENCH REALLY WOULD LIKE TO LOWER RATES AND THE MARKET KNOWS THAT
SAID BILL BERTHA A VICE PRESIDENT AND CHIEF DEALER AT MELLON BANK IN
PITTSBURGH

THE GERMAN AND FRENCH CENTRAL BANKS SEEMED POWERLESS MONDAY TO STOP THE
FRANC'S DOWNWARD JUGGERNAUT WHEN THE MARK CLIMBED ABOVE 34100 FRANCS THE
BANK OF FRANCE ENTERED THE MARKET TO SELL MARKS FOR FRANCS TRADERS SAID
GERMANY'S BUNDESBANK ACKNOWLEDGED ENTERING THE MARKET TWICE TO BUY FRANCS

ALSO DURING THE DAY FRANCE USED ITS REPURCHASE RATE AUCTION TO WITHDRAW
LIQUIDITY FROM THE MARKET HOPING TO INCREASE THE VALUE OF THE FRANC BY
LIMITING THE SUPPLY

AND AFTER EUROPEAN TRADING HAD CLOSED BUNDESBANK PRESIDENT HELMUT
SCHLESINGER EMPHASIZED THAT CLOSE MONETARY COOPERATION BETWEEN THE TWO
COUNTRIES WOULD CONTINUE WHILE BANK OF FRANCE CHIEF JACQUES DE LAROSIERE
INSISTED THAT THE FRANC'S DECLINE HAD ABSOLUTELY NO FUNDAMENTAL REASON
BEHIND IT

BUT THE FRENCH CURRENCY CONTINUED ITS FREE FALL WITH THE MARK ENDING THE
DAY AT 34141 FRANCS COMPARED WITH 33998 FRANCS LATE FRIDAY IN NEW YORK
AND INCREASINGLY CLOSE TO THE MARK'S EMS CEILING OF 34305 FRANCS

MR BERTHA SAID HE DOUBTED THAT STATEMENTS AND INTERVENTIONS WOULD BE ENOUGH
TO STEADY THE FRANC I DON'T SEE TOO MUCH OF A WAY OUT UNLESS THE GERMANS
CUT RATES HE SAID

LOWER GERMAN RATES WOULD BE A MOVE TOWARD EQUALIZING THE RETURN ON
INVESTMENT IN THE TWO COUNTRIES LESSENING THE APPEAL OF THE MARK AGAINST
THE FRANC LAST WEEK GERMANY OFFERED REPURCHASE RATE AGREEMENTS AT 730
FRANCE'S EQUIVALENT MONEY MARKET INTERVENTION RATE IS 675

THEORETICALLY THE BUNDESBANK COULD MAKE A MOVE TOWARD LOWER RATES AS EARLY
AS TUESDAY WHEN IT ANNOUNCES RATES FOR ITS WEEKLY REPURCHASE AGREEMENT
AUCTIONS TRADERS NOTED BY SETTING A FIXED LOWER RATE FOR THE REPO
AUCTION THE BUNDESBANK WOULD MAKE AN IMMEDIATE STATEMENT

EVEN IF IT ANNOUNCES A VARIABLERATE AUCTION THE BUNDESBANK COULD PUSH
RATES DOWN BY ACCEPTING REPOS AT A LOWER RATE TO BE ANNOUNCED WEDNESDAY

THE GERMAN CENTRAL BANK EVEN MIGHT CUT ITS BENCHMARK DISCOUNT RATE
CURRENTLY AT 675 AND LOMBARD RATE NOW 825 FOLLOWING ITS BIWEEKLY
POLICY MEETING THURSDAY

THOSE OPTIONS ARE CONSIDERED UNLIKELY IN THE WAKE OF GERMANY'S
LARGERTHANEXPECTED CUT IN DISCOUNT AND LOMBARD RATES AT ITS MOST RECENT
POLICY MEETING JULY 1

NEVERTHELESS TRADERS SAID EVEN THE POSSIBILITY OF A GERMAN RATE CUT IS
SUPPORTING THE DOLLAR AGAINST THE MARK FURTHERMORE AS THE ERM TENSIONS
SHOW SIGNS OF SPREADING TO OTHER RELATIVELY WEAK CURRENCIESSUCH AS THE
DANISH KRONE AND SPANISH PESETA THE TRADERS SAID THE DOLLAR WILL CONTINUE
TO LOOK ATTRACTIVE AS A HAVEN

THE DOLLAR WILL CONTINUE TO BENEFIT NOT SO MUCH FROM GOOD NEWS IN THE US
BUT FROM BAD NEWS IN EUROPE SAID CARL AMENDOLA A VICE PRESIDENT AT
BAYERISCHE HYPOTHEKEN &WECHSELBANK IN NEW YORK

THE DOLLAR ALSO RALLIED EARLY MONDAY AGAINST THE YEN ON THE BACK OF A
USJAPAN TRADE PACT THAT EMERGED SATURDAY FOLLOWING LAST WEEK'S MEETING OF
LEADERS OF THE GROUP OF SEVEN INDUSTRIAL NATIONS

US NEGOTIATORS BACKED OFF THEIR DEMAND FOR FIRM NUMERICAL TARGETS FOR
REDUCING THE JAPANESE TRADE SURPLUS BUT SECURED A COMMITMENT THAT CALLS FOR
A HIGHLY SIGNIFICANT REDUCTION OF THE SURPLUS AND QUANTITATIVE AND
QUALITATIVE MEASUREMENTS ON STRUCTURAL AND SECTORAL TRADE ISSUES

TRADERS SAID THAT WHILE THE PACT IS FAR FROM PERFECT PRESIDENT CLINTON'S
ABILITY TO PRODUCE SOME KIND OF AGREEMENT COULD REMOVE THE NEED TO CALL FOR
A STRONGER YEN TO REDUCE JAPAN'S TRADE SURPLUS

OVERALL THE PACT IS BULLISH FOR THE DOLLAR SAID ANN B FINALY A TRADER
AT INDUSTRIAL BANK OF JAPAN

YET AFTER TRADING HIGHER AGAINST THE YEN IN ASIAN AND EUROPEAN TRADING
MONDAY THE DOLLAR WAS SOLD LOWER ON PROFITTAKING IN THE NORTH AMERICAN
MARKETS TRADERS SAID THE DOLLAR WILL BE HAMPERED BY RESISTANCE AROUND 110
YEN FEATURING SELLING BY JAPANESE EXPORTERS

ON TUESDAY THE US WILL RELEASE THE PRODUCER PRICE INDEX WHILE THE
CONSUMER PRICE INDEX AND RETAIL SALES DATA ARE SET TO BE DISCLOSED
WEDNESDAY

MR BERTHA SAID THAT WHILE THE MARKET REMAINS FOCUSED ON EUROPE THE US
INFLATION FIGURES ARE IMPORTANT LONG TERM BECAUSE THEY ARE CAREFULLY WATCHED
BY THE US FEDERAL RESERVE AND ITS POLICYMAKING FEDERAL OPEN MARKET
COMMITTEE

THEY'LL GIVE THE FED A BETTER IDEA IF THEY SHOULD BE TIGHTENING US
INTEREST RATES TO COMBAT INFLATION HE SAID IT SEEMS AS IF THE FOMC IS
SPLIT RIGHT NOW

MINUTES OF THE COMMITTEE'S MAY 18 MEETING RELEASED FRIDAY SHOWED MORE
DISSENT THAN EXPECTED TOWARD THE FOMC'S BIAS TOWARD TIGHTENING WITH SOME
MEMBERS ARGUING FOR A MORE NEUTRAL STANCE 9307130009 930713 INTEL'S
EARNINGS NEARLY TRIPLED IN 2ND QUARTER  CHIP MANUFACTURER
SURPRISES ANALYSTS BY OPTIMISM FOR OVERALL PC DEMAND  BY JIM
CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL

INTEL CORP STEAMING AHEAD ON POWERFUL DEMAND FOR ITS FLAGSHIP
SEMICONDUCTOR CHIP AND NEW SHIPMENTS OF ITS NEXTGENERATION MICROPROCESSOR
SAID PROFIT NEARLY TRIPLED IN THE SECOND QUARTER

INTEL WHICH MAKES MOST OF THE CHIPS THAT ACT AS THE BRAINS OF PERSONAL
COMPUTERS ALSO PUSHED UP THE STOCKS OF SEVERAL PC MAKERS WHEN IT TOLD
ANALYSTS THAT IT SEES STRONG PC DEMAND IN THE US AND JAPAN

NET INCOME FOR THE SANTA CLARA CALIF COMPANY SOARED TO 5685 MILLION OR
130 A SHARE FROM THE YEARBEFORE 2132 MILLION OR 50 CENTS A SHARE
ADJUSTED FOR A STOCK SPLIT PAID LAST MONTH SALES ROSE 61 TO 213 BILLION
FROM 132 BILLION

BASED ON ITS NET PROFIT MARGIN INTEL IS BELIEVED TO HAVE BECOME THE MOST
PROFITABLE LARGE COMPANY IN THE WORLD BY SKILLFULLY MILKING ITS
NEARMONOPOLY POSITION IN THE BOOMING PERSONALCOMPUTER MARKET IT
MAINTAINED A NET MARGIN OF 27 IN THE SECOND PERIOD

ALTHOUGH THE QUARTERLY RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS
INTEL OFFICIALS SURPRISED WALL STREET WITH THEIR OPTIMISTIC VIEW OF THE
CURRENT STRENGTH FOR OVERALL PERSONALCOMPUTER DEMAND

WHILE MANY ANALYSTS HAD ANTICIPATED A SEASONAL SUMMERTIME SLOWDOWN IN SALES
AND WORRIED ABOUT SATURATED MARKETS AHEAD INTEL EXECUTIVES SAID IN A
CONFERENCE CALL WITH ANALYSTS THAT DEMAND WAS RUNNING STRONG IN THE US AND
IN THE NEWLY OPENED JAPANESE MARKET EUROPE HOWEVER WAS SEASONALLY WEAK
INTEL TOLD THE ANALYSTS ANALYSTS SAID THEY WERE TOLD THAT SALES IN BOTH THE
US AND JAPAN WERE BUOYED BY LOWER PRICES AND THAT THE US MARKET IS ALSO
BENEFITING FROM INCREASED DISTRIBUTION CHANNELS

BECAUSE INTEL SUPPLIES CHIPS TO MUCH OF THE WORLD COMPUTER MARKET IT IS
SEEN AS A KEY BAROMETER OF THE PC INDUSTRY'S HEALTH THE POSITIVE COMMENTS
BOOSTED SLUMPING TECHNOLOGY STOCKS APPLE COMPUTER INC FOR INSTANCE ROSE
125 OR 34 TO 38 IN NATIONAL OVERTHECOUNTER TRADING WHILE COMPAQ
COMPUTER CORP GAINED 2125 OR 46 TO 47875 IN NEW YORK STOCK EXCHANGE
COMPOSITE TRADING AND DELL COMPUTER CORP ADVANCED 625 CENTS OR 34 TO
19 IN NATIONAL OVERTHECOUNTER TRADING

ANALYSTS SHOWED RENEWED ENTHUSIASM FOR INTEL STOCK AFTER THE COMPANY TOLD
THEM THAT IT EXPECTED EVEN STRONGER GROWTH THE REST OF THIS YEAR AND THAT IT
EXPECTED TO SHIP MILLIONS OF ITS NEXTGENERATION PENTIUM CHIP NEXT YEAR
THE PENTIUM WHOSE SHIPMENTS BEGAN IN MARCH WILL EVENTUALLY SUPPLANT
INTEL'S HUGELY POPULAR 486 CHIP AND ANALYSTS HAD EXPECTED 1994 SHIPMENTS OF
AS LITTLE AS ONE MILLION ANALYSTS HAD ALSO WORRIED THAT INTEL'S GROWTH RATE
WOULD SLOW NEXT YEAR AS THE PC MARKET BECAME SATURATED

THERE ARE NO NEGATIVES I THINK THEY ARE IN GREAT SHAPE SAID THOMAS
KURLAK FIRST VICE PRESIDENT OF RESEARCH FOR MERRILL LYNCH & CO

INTEL'S STOCK ROSE AS HIGH AS 57 IN NATIONAL OVERTHECOUNTER TRADING
BEFORE CLOSING AT 55625 DOWN 375 CENTS FOR THE DAY ON PROFITTAKING

INTEL IS PERFORMING SO STRONGLY THAT ITS FIRSTHALF EARNINGS ALREADY EXCEED
THE 107 BILLION IN PROFIT FOR ALL OF LAST YEAR FOR THE FIRST SIX MONTHS
INTEL SAID NET INCOME NEARLY TRIPLED TO 112 BILLION ON SALES OF 415
BILLION VS YEAREARLIER PROFIT OF 3972 MILLION ON REVENUE OF 256
BILLION

INTEL HAS HAD DIFFICULTY PRODUCING ENOUGH 486 CHIPS TO KEEP UP WITH DEMAND
THIS GAP HAD LEFT AN OPENING FOR RIVAL ADVANCED MICRO DEVICES INC WHICH
HAD CARVED INTO INTEL'S MARKET SHARE WITH A CLONE OF THE INTEL 386 CHIP AND
HAS BEEN WORKING TO DO THE SAME WITH A 486 CLONE

BUT INTEL INDICATED YESTERDAY THAT THAT OPENING IS NOW CLOSED SAYING IT
COULD NOW MEET MOST DEMAND THANKS TO GREAT PERFORMANCE BY OUR FACTORIES
WE HAVE BEEN ABLE TO INCREASE OUR 486 SHIPMENTS VERY RAPIDLY ANDREW S
GROVE PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A NEWS RELEASE

EUGENE G GLAZER TECHNOLOGY ANALYST FOR DEAN WITTER REYNOLDS SAID ADVANCED
MICRO HAD CAUGHT INTEL OFF GUARD WITH THE 386 CLONE THIS TIME AROUND HE
SAID INTEL HAS BEEN WAITING FOR THEM 9307130008 930713 WHO'S NEWS 
A SCHULMAN INC

A SCHULMAN INC AKRON OHIO RENE C ROMBOUTS 55 YEARS OLD WAS NAMED
GENERAL MANAGER FOR THE COMPANY'S EUROPEAN OPERATIONS EFFECTIVE AUG 31
MR ROMBOUTS WHO CURRENTLY IS DIRECTOR OF EUROPEAN MARKETING FOR
MANUFACTURED PRODUCTS WILL SUCCEED HENRI FROHMANN 71 WHO IS RETIRING
SCHULMAN SELLS PLASTIC COMPOUNDS AND RESINS 9307130007 930713 BUSINESS
BRIEF NOWSCO WELL SERVICE LTD AGREEMENT TO BUY ASSETS OF 2 US
FIRMS IS REACHED

NOWSCO WELL SERVICE LTD SAID IT ENTERED A CONDITIONAL AGREEMENT TO BUY ALL
THE ASSETS OF ACID ENGINEERING INC AND ACID ENGINEERING LOUISIANA INC FOR
CASH THE AMOUNT WASN'T DISCLOSED

THE CALGARY ALBERTA OILFIELD SERVICES COMPANY'S CHAIRMAN AND CHIEF
EXECUTIVE OFFICER PATRICK SHOULDICE SAID HE EXPECTS NOWSCO TO TAKE 60 TO
90 DAYS TO COMPLETE DUE DILIGENCE ON THE PURCHASE AND TO CLOSE THE
TRANSACTION HE SAID HE WOULDN'T FEEL COMFORTABLE PUTTING A PRICE ON THE
TRANSACTION UNTIL THE DUE DILIGENCE HAS BEEN COMPLETED

MR SHOULDICE SAID ACID ENGINEERING OF KILGORE TEXAS AND ACID ENGINEERING
LOUISIANA OF SHREVEPORT LA ARE AFFILIATED CLOSELY HELD COMPANIES
OFFERING THE SAME SERVICES AS NOWSCO IN DIFFERENT GEOGRAPHIC AREAS THE TWO
COMPANIES REPORTED COMBINED REVENUE OF 30 MILLION FOR THE YEAR ENDED MARCH
31 HE SAID 9307130006 930713 BUSINESS BRIEF TEXAS UTILITIES BACKS A
CUT IN ALLOWANCE FOR PLANT INVESTMENT

DALLAS TEXAS UTILITIES CO AGREED WITH THE TEXAS PUBLIC UTILITIES
COMMISSION STAFF TO A 333 MILLION REDUCTION IN THE COMPANY'S ALLOWED
INVESTMENT IN COMANCHE PEAK NUCLEAR PLANT

THE AGREEMENT MEANS THAT THE UTILITY HOLDING COMPANY WILL NOT BE ABLE TO
RECOVER AND EARN A RETURN ON THE FULL AMOUNT OF ITS INVESTMENT IN COMANCHE
PEAK SO FAR TEXAS UTILITIES HAS INVESTED ALMOST 12 BILLION IN THE PLANT
IN A PREVIOUS RATE CASE CONCERNING COMANCHE PEAK THE COMMISSION ALREADY
DISALLOWED 13 BILLION OF THOSE COSTS THAT CASE IS ON APPEAL WITH THE
TEXAS STATE COURT OF APPEALS

THE TEXAS COMMISSION STILL MUST FINALIZE THE 333 MILLION DISALLOWANCE
WHICH IS COMPOSED OF 250 MILLION IN CONSTRUCTION COSTS AND 83 MILLION IN
INTEREST ACCUMULATED ON BORROWING DURING CONSTRUCTION THE AGREEMENT WOULD
SETTLE ALL ISSUES CONCERNING THE PRUDENCE AND FUEL PHASES IN THE PENDING
RATE CASE THE COMPANY WILL HAVE TO REFUND 5 MILLION TO CUSTOMERS IN FUEL
CHARGES PREVIOUSLY INCURRED

THE DISALLOWANCE IS NOT PARTICULARLY POSITIVE OR NEGATIVE FOR THE COMPANY
BUT IT DOES REDUCE A LOT OF UNCERTAINTY AND PROBABLY WILL BE ADOPTED BY THE
COMMISSION SAID ELIZABETH MOORE UTILITIES ANALYST AT DONALDSON LUFKIN &
JENRETTE TEXAS UTILITIES STOCK EDGED UP 13 YESTERDAY TO CLOSE AT 47125
UP 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE

THE TOTAL DISALLOWANCE ON THE NUCLEAR PLANT WAS MORE THAN WHAT THE
COMMISSION STAFF HAD RECOMMENDED AND LESS THAN THE 475 MILLION ARGUED FOR
BY THE OFFICE OF PUBLIC UTILITY COUNSEL AND THE 453 MILLION ADVISED BY THE
COALITION OF CITIES BOTH INTERVENERS IN THE CASE

AS PART OF THE AGREEMENT BUT UNRELATED TO COMANCHE PEAK THE COMMISSION
STAFF AGREED THAT TEXAS UTILITIES WOULD BE ABLE TO RECOVER 197 MILLION OF
ITS RESTRUCTURING EXPENSES FROM RATEPAYERS OVER EIGHT YEARS IT HAD
REQUESTED RECOVERY OF 222 MILLION OVER THREE YEARS THE COMPANY REDUCED ITS
EMPLOYMENT LEVEL BY ABOUT ONETHIRD LAST YEAR IN ORDER TO REDUCE OPERATING
COSTS 9307130005 930713 REDEMPTION NOTICES

THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE
REDEMPTION DURING THE WEEK ENDED JULY 9 1993 THE NOTICES ARE TAKEN FROM
ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT
MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE
DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER

CALVERT KY CALLS FOR OPTIONAL REDEMPTION ON AUG 2 1993 ITS 95 1982
SERIES A POLLUTION CONTROL REVENUE BONDS DUE OCT 1 2012 CORESTATES BANK
PHILADELPHIA IS TRUSTEE

GLENWOOD GA DOWNTOWN DEVELOPMENT AUTHORITY WILL REDEEM ON AUG 1 1993
THE FOLLOWING FIRST MORTGAGE MEDICAL FACILITIES REVENUE BONDS SERIES 1983
DUE FEB 1 OF THE INDICATED YEAR 1225 DUE 1994 1275 DUE 1995 13125
DUE 1996 13375 DUE 1997 13875 DUE 1998 141 DUE 2001 AND 143 DUE
2010 FIRST UNION NATIONAL BANK OF NORTH CAROLINA CHARLOTTE IS PAYING
AGENT

HILLSBOROUGH COUNTY AVIATION AUTHORITY WILL REDEEM ON AUG 1 1993 THE
FOLLOWING TAMPA INTERNATIONAL AIRPORT REVENUE BONDS DUE ON OCT 1 1999
5875 BONDS OF 1968 6 BONDS OF 1973 AND 74 BONDS OF 1974 CHASE
MANHATTAN BANK NEW YORK IS TRUSTEE

MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON AUG
1 1993 480000 PRINCIPAL AMOUNT OF ITS 925 REVENUE BONDS SERIES A DUE
AUG 1 2000 SHAWMUT BANK BOSTON IS TRUSTEE

MIDDLESEX COUNTY WILL REDEEM ON AUG 1 1993 500000 PRINCIPLE AMOUNT OF
ITS 7 1/8 SERIES 1976 POLLUTION CONTROL REVENUE BONDS DUE AUG 1 2001
NATIONAL STATE BANK ELIZABETH NJ IS PAYING AGENT

RICHLAND GA DOWNTOWN DEVELOPMENT AUTHORITY WILL REDEEM ON AUG 1 1993
305000 PRINCIPAL AMOUNT OF ITS 13875 SERIES 1983 FIRST MORTGAGE MEDICAL
FACILITIES REVENUE BONDS DUE FEB 1 1998 FIRST UNION NATIONAL BANK OF
NORTH CAROLINA CHARLOTTE IS PAYING AGENT

SANTA FE NM CALLS FOR SINKING FUND REDEMPTION ON OCT 1 1993 ITS 6
3/4 REFUNDING REVENUE BONDS SERIES 1978 DUE OCT 1 2001 HARRIS TRUST &
SAVINGS BANK CHICAGO IS TRUSTEE

DELMARVA POWER & LIGHT CO WILL REDEEM ON AUG 2 1993 ITS 7 5/8 FIRST
MORTGAGE AND COLLATERAL TRUST BONDS DUE DEC 1 2001 CHEMICAL BANK NEW
YORK IS TRUSTEE

ILLINOIS BELL TELEPHONE CO A UNIT OF AMERITECH CORP WILL REDEEM ON AUG
9 1993 ITS 8 FIRST MORTGAGE BONDS SERIES J DUE JUNE 1 2005 HARRIS
TRUST & SAVINGS BANK CHICAGO IS TRUSTEE

TRANSCONTINENTAL GAS PIPE LINE CORP WILL REDEEM ON AUG 2 1993 THROUGH
THE OPERATION OF THE SINKING FUND 12483 SHARES OF ITS 665 SERIES
CUMULATIVE PREFERRED STOCK FIRST CHICAGO TRUST CO OF NEW YORK IS
FORWARDING AGENT 9307130004 930712 CLOSED END FUNDS

UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE
COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK
EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH
THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS
DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND
AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE
CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER
AAMERICAN MMIDWEST

SINGLE STATE MUNI BOND WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY
SUBSCRIBED VCONVERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS
ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE
SOURCELIPPER ANALYTICAL SERVICES INC 9307130003 930713 ECONOMY HEALTH
CARE NO LONGER PANACEA FOR CITIES  PITTSBURGH'S EXPERIENCE REFLECTS
NATIONWIDE TREND  BY DANA MILBANK STAFF REPORTER OF THE WALL
STREET JOURNAL

PITTSBURGH WHEN THIS TOWN'S STEEL INDUSTRY COLLAPSED A DECADE AGO A
THRIVING HEALTHCARE INDUSTRY EMERGED TO DRESS PITTSBURGH'S WOUNDS THIS
TIME IT'S HEALTH CARE IN THE SICKBED

HEALTH SERVICES AFTER DOUBLING IN SIZE IN RECENT YEARS TODAY EMPLOY BETTER
THAN ONE OF EVERY 10 WORKERS IN THE METROPOLITAN AREA BUT NOW THE AREA'S
HOSPITALS ARE TAKING IN THEIR HELPWANTED SIGNS AND LAYING OFF WORKERS WITH
BIGGER CUTS LOOMING BECAUSE OF HIGH COSTS OVERCAPACITY AND FEAR OF THE
CLINTON ADMINISTRATION'S EMERGING HEALTH PLAN THE LOCAL ECONOMY IS
BEGINNING TO FEEL A CHILL

THE WORRY COMES FROM PEOPLE LIKE DORIS WARDELL WHO LOST HER JOB IN MIDMAY
AS AN ASSISTANT NURSING VICE PRESIDENT AT ALLEGHENY GENERAL HOSPITAL HERE
SHE HAS PUT OFF PLANS TO TRAVEL AND TO BUY A VACATION HOME AND A NEW CAR
YOU SHOULD NOT HAVE TO WORRY ABOUT THAT AT THIS STAGE IN YOUR CAREER SHE
SAYS IT'S NOT QUITE THE AMERICAN DREAM

THE CHILL ALSO COMES INDIRECTLY FROM PEOPLE LIKE ROBERT BORETSKY AND HIS
WIFE KAREN BOTH WELLPAID ANESTHESIOLOGISTS AT PITTSBURGH HOSPITALS THEY
REFUSED TO PAY MORE THAN 400000 FOR A HOUSE WITH A PRICE TAG OF 500000
WE HAVE FOUR YOUNG CHILDREN WE PLAN ON EDUCATING AND THE PROSPECT OF A
LOCAL DOWNTURN IN THE HEALTHCARE INDUSTRY HAS MADE US CAUTIOUS ENOUGH SO WE
WERE NOT CONSIDERING HOMES THE BANKS WOULD HAPPILY LEND US MONEY FOR HE
SAYS THE COUPLE FINALLY BOUGHT A HOUSE THIS MONTH IN A PART OF TOWN FARTHER
FROM THE HOSPITALS

AROUND THE COUNTRY CITIES THAT BUILT THEIR ECONOMIES ON HEALTH CARE ARE
BRACING FOR TROUBLE IN BOSTON HOSPITALS ARE WEIGHING OR IMPLEMENTING
LAYOFFS OR REDUCING THEIR STAFFS THROUGH ATTRITION FIVE HOSPITALS ARE
TALKING ABOUT MERGING IN THE TWIN CITIES HOSPITALS REPORT HIRING FREEZES
AND LAYOFFS IN SACRAMENTO MERCY HEALTH CARESACRAMENTO JUST SAID IT WILL
CUT 93 OF ITS 5100 JOBS THIS SUMMER

THERE'S CLEARLY EXCESS CAPACITY IN THE SYSTEM SAYS RICHARD WADE
SPOKESMAN FOR THE AMERICAN HOSPITAL ASSOCIATION HE PREDICTS 20 TO 25 OF
CAPACITY WILL BE CUT ALONG WITH MANY OF THE 35 MILLION PEOPLE EMPLOYED
IN HOSPITALS IN 1992 39 OF THE COUNTRY'S 5000 HOSPITALS CLOSED WITH MANY
MORE SHRINKING THEIR STAFFS

WHILE THE SHRINKAGE IN HOSPITALS LIKELY WILL BE OFFSET BY GROWTH IN SMALLER
HEALTHCARE OUTLETS OFFERING LONGTERM OR SPECIALIZED CARE THIS OFFERS
LITTLE COMFORT TO AREAS LIKE PITTSBURGH IN WHICH ACUTECARE MEDICAL CENTERS
DOMINATE

PITTSBURGH'S SHADYSIDE HOSPITAL CUT 140 POSITIONS OR 3 OF ITS STAFF THE
UNIVERSITY OF PITTSBURGH MEDICAL CENTER IN EARLY JUNE ELIMINATED 500
POSITIONS HALF UNFILLED OR 4 OF ITS FORCE ALLEGHENY GENERAL SAYS IT CUT
40 OF 5000 POSITIONS WHILE SOUTH HILLS HEALTH SYSTEM CUT 25 OF 2800 JOBS
AND FORBES HEALTH SYSTEM HAS CUT A TOTAL OF 167 POSITIONS WEST PENN
HOSPITAL MEANWHILE HAS REDUCED THE NUMBER OF FULLTIME WORKERS BY 68
RECLASSIFYING THEM AS PARTTIME

THE CUTS MOSTLY IN ADMINISTRATIVE AREAS ARE STILL RELATIVELY SMALL
FAR MORE DAMAGING IS THE PROSPECT THAT HEALTH CARE WILL NO LONGER BE ABLE TO
ABSORB WORKERS DISLOCATED FROM DECLINING INDUSTRIES AND TO ATTRACT AFFLUENT
CONSUMERS TO TOWN HEALTHCARE EMPLOYMENT GREW HERE TO 105700 IN 1992 OR
116 OF THE WORK FORCE FROM 62400 IN 1980 THAT CUSHIONED THE DECLINE IN
MANUFACTURING TO 111100 FROM 224500 OVER THE SAME PERIOD ACCORDING TO THE
STATE'S LABOR DEPARTMENT

STUART HOFFMAN PNC BANK CORP'S ECONOMIST SAYS EMPLOYMENT GROWTH IN HEALTH
CARE AT 4 A YEAR FOR THE PAST FIVE YEARS WILL FALL TO LESS THAN HALF
THAT THE ERA OF DEPENDABLE STEADY GROWTH IN HEALTH CARE IS OVER SAYS
MR HOFFMAN THAT MEANS LOSSES IN OTHER SECTORS WON'T BE MADE UP IN HEALTH
CARE AND OVERALL JOB GROWTH WILL SLOW

THIS REALIZATION HAS SENT SMALL RIPPLES THROUGH THE PITTBURGH ECONOMY
MELLON BANK CORP'S LOCAL ECONOMIC INDEX SHOWED BACK TO BACK DECLINES IN
MARCH AND APRIL MELLON ECONOMIST RICHARD BERNER SAYS THE TOWN HAS LOST
1000 HEALTHCARE JOBS SINCE LAST SUMMER

HOWARD HANNA CO A REALESTATE FIRM REPORTS A LITTLE CHILL FROM THE
HEALTHCARE WORRIES IN HOUSES VALUED AT MORE THAN 250000 ONE LOCAL AGENT
SAYS SUCH HOMES SIT ON THE MARKET FOR SIX TO EIGHT MONTHS YOUNG DOCTORS
ARE BEING CAUTIOUS AND THERE AREN'T AS MANY COMING IN SAYS JOSIE
SCARPACI A SENIOR VICE PRESIDENT

MORROW'S SHADYSIDE JEWELERS NEAR SHADYSIDE HOSPITAL SAYS FEAR HAS PUT A
DAMPER ON BUYING HABITS OF HOSPITAL WORKERS WHEN THEY COME IN THEY SAY
'GEEZ TWO PEOPLE FROM MY GROUP GOT LAID OFF I DON'T KNOW WHAT'S GOING TO
HAPPEN WITH US' SAYS OWNER BURT WALD THERE'S A LOT OF INSECURITY

IRON CITY BUILDERS A CONSTRUCTION AND REMODELING FIRM IN PITTSBURGH'S
EASTERN SIDE NEAR MANY HOSPITALS REPORTS SLOWER THAN USUAL BUSINESS AND
BRAD MCKEAN OWNER OF SIX CAR DEALERSHIPS NEAR THREE HOSPITALS SAYS SALES
HAVEN'T BEEN AFFECTED YET BUT HOSPITALS HAVE STOPPED BUYING HIS REAL ESTATE
FOR EXPANSIONS

WE HAVE AN EXCESS OF TALENT AND AN UNDERSUPPLY OF JOBS IN THE MARKETPLACE
SAYS DALE URBAN HEAD OF THE PITTSBURGH OFFICE OF RIGHT ASSOCIATES AN
OUTPLACEMENT FIRM HE PREDICTS A DRAMATIC RISE IN UNEMPLOYMENT BY LABOR
DAY UNLIKE A DECADE AGO THIS TIME THERE ARE NO MAJOR EMPLOYERS COMING IN
TO PICK UP THE SLACK

THAT COULD MEAN MORE JITTERY CONSUMERS CHERYL KIRCHNER WHO LOST HER JOB AT
ONE HOSPITAL JUST FOUND A JOB AT ANOTHER HOSPITAL BUT IT MEANT DROPPING
BACK ABOUT TWO OR THREE LEVELS OF RESPONSIBILITY IT ALSO MEANT STALLING ON
HER NEW CAR AND HOME REMODELING ROLAND BAELACH STILL SMARTING FROM
UNEXPECTEDLY LOSING HIS INFORMATIONSYSTEMS JOB AT A LOCAL HOSPITAL IS ONE
OF MANY LOOKING TO LEAVE THE INDUSTRY OR TO SKIP TOWN ALTOGETHER

THAT MAY BE THE BEST ALTERNATIVE FOR UNLUCKY HEALTHCARE WORKERS WITH
EVERYBODY IN A REDUCTION MODE THERE JUST WASN'T GOING TO BE OPPORTUNITIES
IN TERMS OF CAREER ADVANCEMENT IN THE PITTSBURGH MARKET SAYS LARRY ZIMMEL
EXPLAINING HIS FLIGHT FROM A PITTSBURGH HOSPITAL TO HILTON HEAD SC AFTER
23 YEARS IN TOWN PITTSBURGH MADE A VERY SUCCESSFUL TRANSITION FROM THE
STEEL AND SMOKESTACK INDUSTRY BASE INTO HEALTH CARE HE SAYS BUT NOW ALL
OF A SUDDEN HEALTH CARE IS HAVING THE SAME EXPERIENCE 9307130002 930712
HONG KONG RESTRICTS A PORTION OF SHARES IN WORLD TRADE CENTRE  
SPECIAL TO THE WALL STREET JOURNAL

HONG KONG THE FINANCIAL SECRETARY HAS RESTRICTED TRANSFER OF 97 OF THE
SHARES OF WORLD TRADE CENTRE GROUP LTD A HONG KONG COMPANY THAT'S THE
TARGET OF A BUYOUT OFFER BY A CHINABASED GROUP

THE MOVE STEMS FROM AN INVESTIGATION BEGUN LAST YEAR AT THE DIRECTION OF THE
SECURITIES AND FUTURES COMMISSION HONG KONG'S MARKET WATCHDOG THE INQUIRY
WAS LAUNCHED THE GOVERNMENT SAID AT THE TIME TO REVIEW SPECIFIC
TRANSACTIONS CONDUCTED SINCE 1990

HONG KONG'S FINANCIAL SECRETARY NAMED AN INSPECTOR TO THE INVESTIGATION LAST
MONTH A STEP THAT PRECEEDED BY SEVERAL DAYS A TAKEOVER BID BY TOP SPRING
DEVELOPMENT LTD FOR WORLD TRADE CENTRE TOP SPRING IS A UNIT OF CHINA
NATIONAL CEREALS OILS & FOODSTUFFS IMPORT AND EXPORT CORP

IN A STATEMENT THE GOVERNMENT SAID ITS INSPECTOR HAMISH MACLEOD HAS
LOOKED INTO THE OWNERSHIP OF 18 MILLION SHARES AND HAS APPROACHED THREE
COMPANIES INVOLVED IN A 1990 PLACEMENT THE GOVERNMENT SAID IT HAS BEEN
UNABLE TO OBTAIN CERTAIN DETAILS REGARDING SOME SHARES AND THAT ANSWERS
FROM PARTIES INVOLVED IN THE PLACEMENT ARE INADEQUATE

IT IS UNCLEAR HOW THE GOVERNMENT'S MOVE WILL AFFECT THE TOP SPRING TAKEOVER
BID WHICH FACES OTHER HURDLES FOR INSTANCE HONG KONG'S STOCK EXCHANGE
INDICATED AT THE TIME OF TOP SPRING'S OFFER VALUED AT 353 BILLION HONG
KONG DOLLARS US4553 MILLION THAT THE EXCHANGE WILL TREAT IT AS A
NEWLISTING APPLICATION

THE EXCHANGE'S MOVE FOLLOWS CALLS FOR A CLAMPDOWN IN HONG KONG ON CHINESE
COMPANIES' SOCALLED BACKDOOR EFFORTS TO OBTAIN LISTINGS ON THE EXCHANGE BY
BUYING COMPANIES TRADED IN THE COLONY THUS OBTAINING LISTED VEHICLES AND
SIDESTEPPING NEWLISTING PROCEDURES 9307130001 930713 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

PARAMOUNT COMMUNICATIONS INC 300 MILLION TWOPART ISSUE PRICED THROUGH
A GROUP OF DEALERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM
CORPORATEWATCH THE FIRST PART CONSISTING OF 150 MILLION OF SEVENYEAR
NOTES DUE JULY 15 2000 WAS PRICED AS 5875S AT 99543 TO YIELD 5956 THE
NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 06 PERCENTAGE POINT ABOVE THE
TREASURY SEVENYEAR NOTE THE SECOND PART 150 MILLION OF 30YEAR
DEBENTURES DUE JULY 15 2023 WAS PRICED AS 75S AT 99628 TO YIELD 7531
THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 09
PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND THE ISSUE IS RATED
SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD &
POOR'S CORP

TIME WARNER ENTERTAINMENT LP 1 BILLION OF SENIOR NOTES DUE JULY 15
2033 PRICED AS 8375S AT 99392 TO YIELD 8428 ACCORDING TO MCM
CORPORATEWATCH THE NONCALLABLE PRIVATEPLACEMENT ISSUE WAS PRICED AT A
SPREAD OF 18 PERCENTAGE POINTS ABOVE THE TREASURY 30YEAR BOND RATED BA2
BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH
UNDERWRITERS LED BY LEHMAN BROTHERS TIME WARNER ENTERTAINMENT IS A UNIT OF
TIME WARNER INC

ASPEN IMAGING INTERNATIONAL INC ONE MILLION COMMON SHARES SOLD TO
BUCKEYE BUSINESS PRODUCTS INC AT 165 APIECE

CELESTIAL SEASONINGS INITIAL OFFERING OF 19 MILLION COMMON SHARES PRICED
AT 20 APIECE THROUGH UNDERWRITERS LED BY PAINEWEBBER

WASHINGTON FEDERAL SAVINGS BANK WASHINGTON DC 6794478 COMMON SHARES
OFFERED RAISING 153 MILLION IN CAPITAL ACCORDING TO THE BANK

FEDERAL HOME LOAN MORTGAGE CORP 2591 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DAIWA SECURITIES AMERICA
INC THE OFFERING SERIES 1567 IS BACKED BY 256 MILLION FROM
PRINCIPALONLY CLASSES OF THE AGENCY'S GOLD STRIP TRUST 152 50 MILLION OF
INTEREST ONLY CLASSES FROM THE TRUST AND 85 30YEAR AGENCY SECURITIES

FEDERAL HOME LOAN MORTGAGE CORP 256 MILLION OF STRIPPED MORTGAGE
SECURITIES OFFERED BY DAIWA SECURITIES AMERICA INC THE OFFERING SERIES
GS152 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE
COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE
REMAINING TERM TO MATURITY OF 298 YEARS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE
OFFERING SERIES 1993137 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE
SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND
WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 296 YEARS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE
OFFERING SERIES TRUST 1993141 IS BACKED BY THE AGENCY'S 30YEAR 7
MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF
755 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC
THE OFFERING SERIES TRUST 1993140 IS BACKED BY THE AGENCY'S 20YEAR 7
MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF
765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 199 YEARS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CITIBANK THE OFFERING
SERIES TRUST 1993142 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE
SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND
WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 297 YEARS

ITALY SOVEREIGN 150 BILLION YEN OF 5125 EUROBONDS DUE JULY 29 2003
AT ISSUE AND REOFFER PRICE 99474 VIA NOMURA INTERNATIONAL PLC BONDS YIELD
519 A SPREAD OF 72 BASIS POINTS ABOVE NO 145 BENCHMARK JAPANESE
GOVERNMENT BOND FEES 0325 POINT

NIPPON CERAMIC JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES
DUE JULY 29 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 1125 COUPON AT
PAR VIA DAIWA BANK SWITZERLAND LTD EACH 50000FRANC NOTE EXERCISABLE
FROM AUG 10 1993 TO JULY 15 1997 TO PURCHASE COMPANY SHARES FINAL
TERMS FIXED JULY 21

TSUMURA & CO JAPAN 15 BILLION YEN OF 2125 CONVERTIBLE EUROBONDS DUE
SEPT 30 2000 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC BONDS CONVERTIBLE
INTO COMPANY SHARES AT TERMS TO BE FIXED JULY 16 CONVERTIBLE FROM AUG 9
1993 TO SEPT 22 2000 CALLABLE ON OR AFTER OCT 1 1994 AT 103 WITH
CALL PRICE DECLINING BY 05 POINT ANNUALLY TO 1005 SUBJECT TO SHARE PRICE
BEING AT LEAST 130 OF CONVERSION PRICE INTEREST PAYABLE SEMIANNUALLY FEES
25 POINTS

UNION BANK OF SWITZERLAND FINANCE NV SWISS PARENT 250 BILLION ITALIAN
LIRE OF 925 EUROBONDS DUE AUG 23 2000 AT ISSUE PRICE 101075 VIA
DEUTSCHE BANK AG LONDON REOFFERED AT 995 TO YIELD 934 GUARANTOR UNION
BANK OF SWITZERLAND FEES 1875 POINTS

WOOLWICH BUILDING SOCIETY UK 50 MILLION OF FLOATINGRATE EURONOTES
DUE JUNE 30 1997 AT ISSUE PRICE PAR VIA SAMUEL MONTAGU & CO LTD BONDS
WILL TRADE INTERCHANGEABLY WITH 125 MILLION OF IDENTICAL NOTES OUTSTANDING
ALL OTHER TERMS UNCHANGED INTEREST PAYABLE QUARTERLY AT 1875 BASIS POINTS
ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR POUNDS FEES
UNDISCLOSED 9307120167 930712 INTERNATIONAL RUSSIA AND JAPAN MOVE TO
CURB PIRACY OFF CHINA  MOSCOW ORDERS NAVY TO SAIL WITH MERCHANT
SHIPS TOKYO TRIES DIPLOMACY  BY MARCUS W BRAUCHLI STAFF
REPORTER OF THE WALL STREET JOURNAL

PIRACY ALONG CHINA'S COAST IS EMERGING AS A POTENTIAL MILITARY AND
DIPLOMATIC FLASH POINT AMONG ASIA'S BIG POWERS

ALARMED BY A SPATE OF ARMED ATTACKS ON MERCHANT SHIPS RUSSIA HAS NOW
ORDERED ITS PACIFIC FLEET TO PROTECT RUSSIAN FREIGHTERS AND FISHING VESSELS
IN THE EAST CHINA SEA ACCORDING TO DIPLOMATS AND MOSCOW NEWS REPORTS
JAPAN MEANWHILE IS ENGAGED IN QUIET BEHINDTHESCENES MANEUVERING TO GET
BEIJING'S ASSURANCES THAT IT WILL ACT TO CURB PIRACY SOME OF WHICH IS
THOUGHT TO INVOLVE CHINESE PUBLICSECURITY OFFICIALS OR THE MILITARY

THE POSSIBILITY THAT RUSSIAN WARSHIPS MIGHT END UP ENGAGING A CHINESE PATROL
WORRIES SOME ASIAN DIPLOMATS BUT RUSSIA EXPECTS ITS NAVAL PRESENCE TO
DISCOURAGE ATTACKS

THIS IS A POTENTIALLY MORE DANGEROUS SITUATION THAN BEFORE SAID DUNCAN
DRUMMOND AN OFFICIAL IN HONG KONG'S MARINE DEPARTMENT WHICH KEEPS TRACK OF
ATTACKS IN AND AROUND THE BRITISH COLONY'S WATERS IN THE SOUTH CHINA SEA

IT'S ALSO AN EERIE THROWBACK TO THE BUCCANEERING DAYS OF THE 19TH CENTURY
WHEN BIG POWERS OFTEN SENT GUNBOATS TO PROTECT THEIR TRADING VESSELS OFF
CHINA'S COAST CLASHES BETWEEN CHINESE AUTHORITIES AND WESTERN MERCHANTMEN
LED TO MILITARY CAMPAIGNS INCLUDING THE OPIUM WARS IN WHICH BRITAIN WON
THE TERRITORY THAT IS NOW HONG KONG

BOTH RUSSIA AND JAPAN HAVE ACTED AFTER ATTACKS ON THEIR COUNTRY'S VESSELS
LAST WEEK ACCORDING TO RUSSIAN NEWS REPORTS CHINESE PATROL BOATS SHOT AT
AND THEN BOARDED A RUSSIAN FREIGHTER VALERY VOLKOV WHICH WAS TRANSPORTING
METAL FROM VLADIVOSTOK TO CHINA RUSSIAN DIPLOMATS SAID THE VESSEL WAS IN
KOREAN WATERS WHEN IT WAS STOPPED NOTHING WAS TAKEN FROM THE SHIP A MONTH
EARLIER ACCORDING TO TRADE REPORTS CHINESE PATROL BOATS DETAINED A RUSSIAN
TRAWLER AND IN JANUARY TWO RUSSIAN SHIPS REPORTED ATTEMPTED PIRATE
ATTACKS IN CHINESE WATERS

LAST MONTH THE DEPUTY COMMANDER OF RUSSIA'S PACIFIC FLEET REAR ADM YEGOR
KHMELNOV ASKED FOR PERMISSION TO DEFEND RUSSIAN MERCHANT VESSELS DIPLOMATS
SAID SEVERAL NAVY VESSELS HAVE NOW BEEN DISPATCHED TO THE EAST CHINA SEA
MOSCOW ALSO SENT A DIPLOMATIC NOTE OF PROTEST TO BEIJING LAST WEEK

JAPANESE SHIPS TOO HAVE REPORTED INCIDENTS ON THE HIGH SEAS WHEN PASSING
NEAR CHINA'S COAST A FOREIGN MINISTRY SPOKESMAN IN TOKYO CONFIRMED OVER THE
WEEKEND HE COULDN'T PROVIDE SPECIFICS ABOUT THE INCIDENTS BUT HE NOTED
THAT THE ATTACKING SHIPS SELDOM BORE ANY IDENTIFYING NATIONAL INSIGNIAS
THE CHINESE SIDE ISN'T IN A POSITION TO CONFIRM IF THE SHIPS ARE CHINESE
HE SAID BUT THEY OFFERED UTMOST EFFORTS TO REDUCE SUCH INCIDENTS

THE ABSENCE OF IDENTIFYING MARKINGS IS CONSISTENT WITH ATTACKS THAT HAVE
BEEN REPORTED ALL ALONG CHINA'S COAST FROM ITS SOUTHERN BORDER WITH VIETNAM
UP TO ITS BORDER WITH NORTH KOREA IN MOST INSTANCES THE MERCHANT VESSEL
CREWS HAVE SAID THE ATTACKING VESSELS' CREWS ARE WEARING CHINESE UNIFORMS
CARRYING CHINESEISSUE WEAPONS AND SPEAKING CHINESE

THE MOST FREQUENT VICTIMS OF THE ATTACKS HAVE BEEN SHIPS SAILING FROM HONG
KONG TO VIETNAM THEY HAVE BEEN SHOT AT DETAINED HAD THEIR CARGOS SEIZED
AND THEIR CREWS HELD FOR RANSOM BY RAIDERS SHIPPING COMPANIES BELIEVE THE
MARAUDERS ARE LOOKING FOR ELECTRONICS AUTOMOBILES OR OTHER GOODS THEY CAN
SELL IN CHINA

IN SEVERAL CASES RAIDERS HAVE DECLARED THEMSELVES TO BE MEMBERS OF CHINA'S
PUBLIC SECURITY BUREAU AND HAVE ISSUED THE MERCHANT VESSELS LEGAL DOCUMENTS
TO JUSTIFY THEIR SEIZURE OF GOODS THE DOCUMENTS ASSERT THAT THE SEIZED
GOODS AUTOMOBILES ARE MOST POPULAR WERE INTENDED FOR SMUGGLING INTO
CHINA WHICH CHARGES A HIGH DUTY ON SUCH GOODS

THE UNITED NATIONS HAS BEEN TRYING TO COORDINATE EFFORTS TO REDUCE PIRACY
WHICH IS RAMPANT IN SOME ASIAN SHIPPING CHANNELS AND THE INTERNATIONAL
MARITIME BUREAU HAS ESTABLISHED A REGIONAL CENTER IN KUALA LUMPUR TO MONITOR
PIRACY AND WARN SHIPS ABOUT DANGEROUS AREAS 9307120166 930712 BRISK CAR
SALES LIKELY IN CHINA DESPITE CURBS  FOREIGNFUNDED VENTURES 
BIG BUYERS OF IMPORTS NOT MENTIONED IN EDICT  BY SALLY D GOLL 
STAFF REPORTER OF THE WALL STREET JOURNAL

HONG KONG THE EFFORT BY CHINA'S NEW ECONOMIC CZAR TO PUT THE BRAKES ON
THE OVERHEATED ECONOMY ISN'T LIKELY TO BE A LONGTERM PROBLEM FOR FOREIGN
AUTO MAKERS DESPITE A BAN ON CAR IMPORTS BY GOVERNMENTOWNED BUSINESSES IN
THE SECOND HALF

WHILE INDUSTRY EXECUTIVES SAY IT'S STILL TOO EARLY TO PREDICT HOW THE
MEASURES WILL BE IMPLEMENTED MOST DON'T EXPECT SALES TO COME TO A COMPLETE
STOP

OBVIOUSLY THERE WILL BE SOME IMPACT SAYS LOUIS TONG MANAGING DIRECTOR OF
SRG CHINA LTD A MARKET RESEARCH FIRM HERE BUT IT'S A MATTER OF DEGREE

OBSERVERS NOTE THAT THE NEW EDICTS FROM VICE PREMIER ZHU RONGJI FIRST
REPORTED BY A PROBEIJING NEWSPAPER IN HONG KONG HAVEN'T BEEN OFFICIALLY
RELEASED NOR HAVE THEY BEEN REPORTED IN CHINA ITSELF THAT RAISES QUESTIONS
ABOUT HOW SERIOUS THE GOVERNMENT MAY BE ABOUT ENFORCING ITS NEW RULES

BUT OVERALL SAYS MR TONG ALL SIGNS FOR FOREIGN CAR MAKERS EYEING CHINA
READ GO GO GO

THAT'S BECAUSE FOREIGNFUNDED JOINT VENTURES WHICH WEREN'T MENTIONED IN THE
GOVERNMENT'S 16POINT AUSTERITY PLAN ARE AMONG THE LARGEST BUYERS OF
IMPORTED CARS IN CHINA WHILE TARIFFS ON IMPORTED CARS CAN RUN AS HIGH AS
285 THOSE SOLD TO FOREIGN JOINT VENTURES ARE TARIFFFREE AS A MEANS OF
ENCOURAGING INVESTMENT

INDUSTRY EXECUTIVES SAY THEY DON'T EXPECT THE GOVERNMENT TO DO ANYTHING
INCLUDING REVOKING CARIMPORT PRIVILEGES WHICH WOULD DISCOURAGE THE FLOW OF
FOREIGN FUNDS INTO THE COUNTRY

GOVERNMENT ENTERPRISES AND INDIVIDUALS WELLCONNECTED ENOUGH TO SECURE A CAR
IMPORT LICENSE ON THEIR OWN PAY FULL DUTIES THAT'S HELPED SPARK A LARGE
CONTINGENT OF SMUGGLERS ALONG CHINA'S SOUTHERN COAST NATURALLY THEY PAY
NOTHING SAVE FOR THE BRIBES NECESSARY TO GET THEIR CARS ACROSS THE BORDER
NOTABLY SMUGGLING OF MERCEDES AUTOS PRIZE STATUS SYMBOLS AMONG CHINA'S
NEWLY RICH APPEARS TO HAVE DECREASED SINCE THE HONG KONG GOVERNMENT EARLIER
THIS YEAR CRACKED A RING OPERATING OUT OF THE COLONY'S CUSTOMS OFFICE SAID
GUNTER WINKELKOTTER GENERAL MANAGER OF MERCEDEZBENZ CHINA LTD A UNIT OF
DAIMLERBENZ AG SMUGGLERS HAD BEEN SHIPPING STOLEN CARS IN BULK CONTAINERS
MORE RECENTLY THEY'VE HAD TO RESORT TO TRANSPORTING THEM BY SPEEDBOAT
WHICH HAS APPARENTLY SLOWED THE HOT CAR TRAFFIC OUT OF HONG KONG

CHINA'S DEMAND FOR IMPORTED CARS HAS ACCELERATED AT BREAKNECK SPEED OVER THE
PAST FEW YEARS THE NUMBER OF PASSENGER AND COMMERCIAL VEHICLES IMPORTED
INTO CHINA IN 1992 JUMPED 113 TO 209993 ACCORDING TO OFFICIAL CHINESE
STATISTICS IN DOLLAR TERMS IMPORTS SHOT UP 125 TO 243 BILLION

MERCEDESBENZ'S MOST POPULAR MODEL IS THE 300 SEL PRICED AT ABOUT 58000
THE COMPANY IMPORTED 2000 CARS INTO CHINA IN 1992 MORE THAN DOUBLE THE
1991 TOTAL ACCORDING TO MR WINKELKOTTER THIS YEAR HE SAYS THE COMPANY
AGAIN EXPECTS TO DOUBLE ITS SALES

CHINA PRODUCED 160000 CARS LAST YEAR AND HOPES TO INCREASE THAT FIGURE TO
TWO MILLION BY 2001 ACCORDING TO THE ENGLISHLANGUAGE CHINA DAILY NEWSPAPER
TOTAL VEHICLE PRODUCTION INCLUDING COMMERCIAL AND PASSENGER CARS IS
EXPECTED TO HIT THREE MILLION UNITS CHINA PRODUCED JUST OVER ONE MILLION
PASSENGER AND COMMERCIAL VEHICLES LAST YEAR

THE EXPLODING DEMAND FOR CARS IN CHINA HASN'T GONE UNNOTICED BY STATERUN
COMPANIES WHICH ARE COMING UNDER INCREASING PRESSURE TO PRODUCE PROFITS
MANY HAVE SET UP IMPORT COMPANIES THAT ARRANGE SHIPMENTS FROM MIDDLEMEN IN
THE US AND ELSEWHERE THE CARS ARE STOCKPILED IN BONDED WAREHOUSES AND
SOLD LATER SOME TO FOREIGN JOINT VENTURES BUT MANY TO INDIVIDUALS OR OTHERS
WHO ARE CASHRICH BUT UNABLE TO PRODUCE AN IMPORT LICENSE

COMPOUNDING THE PROBLEM ACCORDING TO ONE AUTO EXECUTIVE IS THE FACT THAT
MANY JOINT VENTURES HAVE MORE CAR IMPORT LICENSES THAN THEY CAN USE THAT'S
CREATED A BLACK MARKET FOR SUCH LICENSES WHICH HAS FURTHER FEULED THE
GROWTH OF THE GRAY MARKET ACCORDING TO SPENCER SHI A REGIONAL DIRECTOR FOR
SOFRASIA LTD GENERAL MOTORS' OFFICIAL DISTRIBUTOR IN CHINA THE GOVERNMENT
RECENTLY SET UP A COMPANY TO COORDINATE AND CONTROL IMPORTS COMING FROM
BONDED WAREHOUSES MR SHI BELIEVES IT IS THIS MARKET AND NOT THE
LEGITIMATE IMPORT OF CARS BY AUTHORIZED DEALERS THAT THE GOVERNMENT HOPES
TO CURB

MEANTIME MOST FOREIGN CAR COMPANIES SAY THEY HAVE NO PLANS TO CUT BACK ON
BRANDBUILDING IN CHINA AS THEY DO IN MOST OTHER MARKETS FOREIGN CAR
MAKERS IN CHINA ADVERTISE WIDELY IN NEWSPAPERS HONG KONGBASED COMPANIES
THAT ADVERTISE ON LOCAL TELEVISION GET AN EXTRA BANG FOR THEIR BUCK BECAUSE
THOSE STATIONS ARE WIDELY RECEIVED IN MUCH OF SOUTHERN CHINA

CAR SHOWS ALSO ARE IMPORTANT AND THE CHINESE GOVERNMENT HAS STAGED THREE OF
THEM SO FAR THIS YEAR THE MOST RECENT TOOK PLACE IN SHANGHAI IN JUNE AND
ATTRACTED NEARLY ALL OF THE WORLD'S MAJOR AUTO MAKERS INCLUDING GM FORD
MOTOR CO BMW A UNIT OF BAYERISCHE MOTOREN WERKE AG SAABSCANIA AB
NISSAN MOTOR CO MAZDA MOTOR CORP AND TOYOTA MOTOR CORP ALREADY PRODUCING
CARS IN CHINA ARE MERCEDES GM CHRYSLER CORP VOLKSWAGON AND AUDI BOTH
UNITS OF VOLKSWAGEN AG AND PEUGEOT AND CITROEN BOTH UNITS OF PSA PEUGEOT
CITROEN SA

THE GOVERNMENT'S NEXT INTERNATIONAL CAR SHOW IS SCHEDULED IN SEPTEMBER IN
SHENZHEN THE CHINESE BOOMTOWN JUST OVER THE BORDER FROM HONG KONG
9307120165 930712 ENTERPRISE ENTREPRENEUR FINDS MONKS MAKE HEAVENLY
EMPLOYEES  SMALL DATASERVICES FIRM SAYS CUSTOMERS ARE FLOCKING TO
ITS DOOR  BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET
JOURNAL

A VIRGINIA ENTREPRENEUR HAS FOUND A WAY TO PLEASE BOTH GOD AND MAMMON WITH
THE HELP OF SOME HARDWORKING MONKS ED LEONARD FOUNDED ELECTRONIC
SCRIPTORIUM LTD IN APRIL 1992 THE COMPANY FARMS OUT DATASERVICES PROJECTS
TO MONASTERIES AND SO FAR IT LOOKS LIKE A MATCH MADE IN HEAVEN

ELECTRONIC SCRIPTORIUM'S CUSTOMERS SAY THEY LIKE ITS REASONABLE PRICES AND
TRUST THE MONKS TO HANDLE SENSITIVE INFORMATION WITH DISCRETION WITH OTHER
SOURCES OF INCOME DWINDLING THE MONASTERIES SAY THEY CAN USE THE EXTRA
MONEY

AND MR LEONARD HAS MANAGED TO TURN A PROFIT WITH THE HELP OF HIS NEARLY
PERFECT EMPLOYEES THEY'RE NEVER LATE RARELY ABSENT AND THERE'S NO DRUG
PROBLEM HE SAYS

WHEN WE HAD THIS IDEA THE RESPONSE WAS PHENOMENAL HE SAYS CUSTOMERS
WERE GIVING US WORK FASTER THAN THE MONASTERIES COULD DECIDE WHETHER IT WAS
SOMETHING THEY WANTED TO DO THOUGH HE WON'T SPECIFY EARNINGS HE SAYS HE
EXPECTS REVENUE TO APPROACH 750000 IN 1993 THE COMPANY'S FIRST FULL YEAR
OF OPERATION

AS ELECTRONIC SCRIPTORIUM'S BRIEF HISTORY MAKES CLEAR AN ENTREPRENEUR
DOESN'T HAVE TO COME UP WITH A DAZZLING NEW IDEA TO START A COMPANY
SOMETIMES FIGURING OUT HOW TO EXCEL AT JUST ONE ASPECT OF THE OPERATION CAN
GIVE A BUSINESS A SOLID ADVANTAGE A RESTAURANT IS LIKELY TO THRIVE NO
MATTER WHAT ITS MENU IF IT FINDS THE RIGHT LOCATION AND ANY COMPANY WILL
GET A JUMP ON THE COMPETITION IF IT CAN RECRUIT A WORK FORCE THAT IS SMART
INDUSTRIOUS AND CLEANLIVING

MR LEONARD FIRST WORKED WITH MONKS AT HOLY CROSS ABBEY A CISTERCIAN
COMMUNITY IN BERRYVILLE VA WHERE HE UPDATED THE COMPUTER SYSTEM FOR ITS
MAILORDER FRUITCAKE BUSINESS AT THE TIME HE WAS AN EMPLOYEE AT DUN &
BRADSTREET CORP AND WAS HELPING THE MONASTERY AS A FAVOR

IN THE PROCESS HE FORMED A FRIENDSHIP WITH BROTHER BENEDICT SIMMONDS A
FORMER LIBRARIAN WITH CONTACTS AT SEVERAL UNIVERSITY LIBRARIES INCLUDING
YALE AND JOHNS HOPKINS FROM BROTHER BENEDICT HE LEARNED THAT SOME OF THE
LIBRARIES WERE LOOKING FOR HELP IN ENTERING PRINTED RECORDS INTO COMPUTERS
AFTER GETTING THE BLESSING OF THE MONKS AND THEIR ABBOT ELECTRONIC
SCRIPTORIUM WAS BORN AND HOLY CROSS RECEIVES A PERCENTAGE OF THE COMPANY'S
PROFITS THE MONKS THERE AND AT OTHER ABBEYS ARE PAID BY THE PIECE ABOUT
10 AN HOUR AND TURN OVER THEIR WAGES TO THE MONASTERY

IN ITS 15 MONTHS OF EXISTENCE THE COMPANY HAS DEVELOPED PROJECTS WITH THREE
MONASTERIES AND SOME OF ITS 11 OFFICE EMPLOYEES PICK UP THE SLACK IN BUSY
PERIODS IT HAS ALSO RECEIVED INQUIRIES FROM SEVERAL OTHER MONASTERIES
INCLUDING A FEW IN EUROPE AND LATIN AMERICA

SO FAR UNIVERSITY LIBRARIES HAVE BEEN THE MOST ENTHUSIASTIC CUSTOMERS
PARTLY BECAUSE OF THE STRONG TRADITIONAL LINKS BETWEEN MONASTICISM AND
SCHOLARSHIP HOLY CROSS ABBEY TRANSFERRED 10000 MANUALCARD CATALOG RECORDS
TO COMPUTER FOR THE CROSS CAMPUS LIBRARY AT YALE UNIVERSITY IT TAKES US
BACK FULL CIRCLE TO THE DAYS OF HANDWRITTEN LIBRARY WORK SAYS DON WATERS
YALE'S DIRECTOR OF SYSTEMS

TWO MONKS AT GETHSEMANI ABBEY IN NEW HAVEN KY DEVELOPED AN INDEX FOR THE
JOHNS HOPKINS MEDICAL INSTITUTIONS ARCHIVES NANCY MCCALL JOHNS HOPKINS
ARCHIVIST SAID THE MONKS' INTEGRITY WAS A SELLING POINT THEY'RE DISCREET
ABOUT HANDLING SENSITIVE AND CONFIDENTIAL WORK SHE SAYS

INDEED THE COLLECTIVE BRAINPOWER OF ITS WORKERS GIVES ELECTRONIC
SCRIPTORIUM AN EDGE OVER OTHER DATASERVICES COMPANIES ACCORDING TO LIBRARY
CORP AN INWOOD WVA COMPANY THAT SELLS DATAMANAGEMENT SOFTWARE TO
LIBRARIES LIBRARY CORP EMPLOYS ELECTRONIC SCRIPTORIUM TO HELP AUTOMATE
LIBRARIES IN PREPARATION FOR ITS SOFTWARE THE QUALITY CONTROL IS FAR FAR
SUPERIOR SAYS MARK WILSON LIBRARY CORP'S DIRECTOR OF DATA PROCESSING I
DON'T THINK YOU USUALLY GET PHD'S TYPING CATALOG INFORMATION

WHILE ELECTRONIC SCRIPTORIUM'S COMPETITORS ARE MUCH LARGER THE COMPANY MAY
BE ABLE TO DEVELOP A NICHE IN ACADEMIC LIBRARY WORK ACADEMICS ARE A LITTLE
MORE DEMANDING AND REQUIRE MORE SKILL SAYS WANDA BOWER ASSISTANT MANAGER
OF CONVERSION FOR BRODART CO OF WILLIAMSPORT PA GARY HOUK VICE PRESIDENT
OF SERVICES FOR OCLC ONLINE COMPUTER LIBRARY CENTER INC OF COLUMBUS OHIO
SAYS AS LONG AS THEY'RE PRICE COMPETITIVE THEY CAN CERTAINLY STAKE OUT AN
AREA FOR THEMSELVES

WORKING WITH A MONASTERY DOES PLACE CERTAIN CONSTRAINTS ELECTRONIC
SCRIPTORIUM IS SELECTIVE ABOUT THE WORK IT ACCEPTS AND MR LEONARD SAYS HE
AVOIDS JOBS WITH HIGHPRESSURE DEADLINES OR WHERE THERE'S NO HUMANISTIC
VALUE FOR EXAMPLE HE SAYS THE COMPANY PROBABLY WOULDN'T DO DATAENTRY
PROJECTS FOR CREDITCARD COMPANIES

MANY MONASTERIES HAVE HAD PROBLEMS FINDING WORK THAT IS BOTH APPROPRIATE AND
PROFITABLE CLOISTERED MONASTERIES WHICH CANNOT RUN SCHOOLS OR WORK WITH
PARISHES HAVE TRADITIONALLY SUPPORTED THEMSELVES THROUGH AGRICULTURAL WORK
HOWEVER SAYS SISTER CATHERINE QUINN COVICAR FOR RELIGIOUS OF THE
ARCHDIOCESE OF NEW YORK IT IS BECOMING MORE DIFFICULT BECAUSE IT'S LIKE A
COTTAGE INDUSTRY THEY'RE IN COMPETITION WITH LARGE PRODUCERS

SOME MONASTERIES DEVOTE THEMSELVES TO MAKING VESTMENTS CANDLES AND ALTAR
BREADS BUT SISTER CATHERINE ASKS HOW MANY CUSTOMERS DO YOU HAVE

BROTHER RON PICKARSKI A FRANCISCAN FRIAR BASED IN FLORIDA SAYS THE FUTURE
OF MONASTERIES LIES IN ENTREPRENEURSHIP THE ONES THAT SURVIVE INTO THE
21ST CENTURY WILL BE THOSE THAT ENTER INTO THE BUSINESS COMMUNITY AND REALLY
EARN THEIR DAILY BREAD HE SAYS

PERSUADING MONASTERIES TO TRY A RADICAL BUSINESS STRATEGY HASN'T BEEN EASY
WE LEAD THE KIND OF LIFE IN WHICH CHANGE IS LOOKED AT VERY CAREFULLY BEFORE
PLUNGING FORWARD BROTHER BENEDICT SAYS AND WORKING FOR PRIVATE COMPANIES
IS A VERY NEW IDEA

BUT MR LEONARD PREDICTS THAT CHANGE WILL COME AND OTHERS SAY THERE IS
AMPLE PRECEDENT FOR THAT THERE IS SOME LEFTOVER ROMANTICISM THAT RESISTS
BRINGING MODERN TECHNOLOGY INTO MONASTIC LIFE SAYS BROTHER BENJAMIN OF
GETHSEMANI BUT THERE IS A LONG TRADITION HE ADDS OF MONASTERIES USING TO
THE BEST ADVANTAGE WHAT'S AVAILABLE TO SOCIETY AND SORT OF BAPTIZING IT
ALONG THE WAY 9307120164 930712 SECURITIES OFFERING CALENDAR

THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE
TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL
MARKETS REPORT

ALOHA AIRGROUP INC INITIAL 52 MILLION CLASS A COMMON SHARES VIA
GOLDMAN SACHS & CO AND PRUDENTIAL SECURITIES INC

AMERICAN BANKERS INSURANCE GROUP INC 34 MILLION SHARES TWO MILLION
OFFERED BY THE COMPANY VIA MERRILL LYNCH & CO

AMERICAN HEALTH PROPERTIES THREE MILLION SHARES VIA GOLDMAN SACHS

ANDOVER CONTROLS CORP THREE MILLION SHARES 24 MILLION IN THE US VIA
PAINEWEBBER INC

BOYD GAMING CORP INITIAL EIGHT MILLION SHARES VIA SALOMON BROTHERS INC

CELESTIAL SEASONINGS INITIAL 19 MILLION SHARES VIA PAINEWEBBER

CENTRAL GARDEN & PET CO INITIAL 22 MILLION SHARES VIA MONTGOMERY
SECURITIES

CHINA TIRE HOLDINGS LTD INITIAL 61 MILLION SHARES VIA MORGAN STANLEY &
CO

CIRCUS CIRCUS ENTERPRISES INC 400 MILLION OF TWOPART SENIOR
SUBORDINATED NOTES AND DEBENTURES VIA SALOMON BROS

CONCURRENT COMPUTER CORP 143 MILLION SHARES VIA SALOMON BROS

CONNECTICUT L&P UNIT OF NORTHEAST UTILITIES 300 MILLION OF TWOPART
FIRST AND REFUNDING MORTGAGES VIA COMPETITIVE BID

FOURTH SHIFT CORP INITIAL 35 MILLION SHARES 3050000 OFFERED BY THE
COMPANY VIA PIPER JAFFRAY INC

FRESH CHOICE INC 14 MILLION SHARES 850000 OFFERED BY THE COMPANY VIA
ALEX BROWN & SONS INC

GENERAL ATLANTIC RESOURCES INC INITIAL 34 MILLION SHARES 27 MILLION
IN THE US/CANADA VIA LEHMAN BROTHERS

GENERAL NUTRITION COS 14 MILLION SHARES 1080000 IN US/CANADA VIA
MORGAN STANLEY

HORNBECK OFFSHORE SERVICES INC 35 MILLION SHARES 25 MILLION OFFERED
BY THE COMPANY VIA MERRILL LYNCH AND ROBINSONHUMPHREY CO

JORDAN INDUSTRIES UNIT OF JORDAN CO 350 MILLION OF TWOPART SENIOR
NOTES AND SENIOR SUBORDINATED DISCOUNT DEBENTURES VIA DONALDSON LUFKIN &
JENRETTE SECURITIES CORP

KEY TECHNOLOGY 17 MILLION SHARES 13 MILLION OFFERED BY THE COMPANY
VIA NEEDHAM & CO

MORGAN STANLEY EMERGING MARKETS INCOME FUND INITIAL FOUR MILLION SHARES
VIA MORGAN STANLEY

NEUREX CORP INITIAL THREE MILLION CLASS A SHARES VIA LEHMAN BROTHERS
AND KIDDER PEABODY & CO

PETROLEOS DE VENEZUELA SA 13 BILLION OF YANKEE BONDS

POST PROPERTIES INC INITIAL 92 MILLION SHARES VIA MERRILL LYNCH

STECKVAUGHN PUBLISHING INC INITIAL 23 MILLION SHARES VIA ROBERTSON
STEPHENS & CO

SUMMIT TECHNOLOGY INC ONE MILLION SHARES VIA BEAR STEARNS & CO

THERMO ELECTRON CORP 45 MILLION SHARES VIA LEHMAN BROTHERS

UNITED INTERNATIONAL HOLDINGS INC INITIAL 31 MILLION SHARES 25
MILLION IN THE US VIA SMITH BARNEY HARRIS UPHAM & CO

WABASH NATIONAL CORP SECONDARY OFFERING OF ONE MILLION SHARES VIA ALEX
BROWN

WAINOCO OIL CORP FIVE MILLION SHARES VIA FIRST BOSTON CORP

COOK COUNTY ILL 296 MILLION OF GENERAL OBLIGATION BONDS VIA A SMITH
BARNEY GROUP

GEORGIA 600 MILLION OF SERIES 1993E GENERAL OBLIGATION REFUNDING BONDS
VIA A FIRST BOSTON GROUP

NEW ENGLAND EDUCATION LOAN MARKETING CORP 1301 MILLION OF SERIES C D
AND E STUDENT LOAN REFUNDING BONDS VIA A CHEMICAL SECURITIES INC GROUP

SARASOTA COUNTY SCHOOL BOARD FLA 1153 MILLION OF BONDS VIA A MERRILL
LYNCH GROUP

PUERTO RICO HIGHWAY AUTHORITY 806 MILLION OF NEWMONEY AND REVENUE
REFUNDING BONDS VIA A MERRILL LYNCH GROUP

ORANGE COUNTY WATER DISTRICT CALIF 160 MILLION OF BONDS VIA A SMITH
BARNEY GROUP

WASHINGTON PUBLIC POWER SUPPLY SYSTEM 400 MILLION OF SERIES 1993B
REFUNDING REVENUE BONDS VIA A GOLDMAN SACHS GROUP

PDV AMERICA INC WILL PRICE A 1 BILLION DEBT ISSUE IN COMING WEEKS NOT
THIS WEEK IT WILL NOT BE A YANKEE BOND YESTERDAY'S SECURITIES OFFERING
CALENDAR INCORRECTLY STATED THAT PETROLEOS DE VENEZUELA SA PDV'S PARENT
WOULD PRICE A 13 BILLION YANKEE BOND OFFERING THIS WEEK 9307120163
930712 ECONOMY MINUTES CONFIRM FED'S MAY VOTE TO LEAN TOWARD HIGHER
RATES TWO DISSENTED  BY RICK WARTZMAN STAFF REPORTER OF THE WALL
STREET JOURNAL

WASHINGTON WHILE FEDERAL RESERVE OFFICIALS VOTED TO LEAN TOWARD HIGHER
SHORTTERM INTEREST RATES AT THEIR MEETING IN MAY TWO POLICY MAKERS
DISSENTED FOR TOTALLY OPPOSITE REASONS

THE TWO VOTES AGAINST THE ACTION CAST BY FED GOV WAYNE ANGELL AND
PHILADELPHIA FEDERAL RESERVE BANK PRESIDENT EDWARD BOEHNE UNDERSCORE THE
DIFFICULT TIME PEOPLE AT THE CENTRAL BANK AND ELSEWHERE HAVE HAD LATELY IN
DISCERNING HOW SERIOUS A THREAT INFLATION IS

DESPITE THOSE UNCERTAINTIES INFLATIONARY PRESSURE APPEARS TO HAVE
DIMINISHED CONSIDERABLY SINCE THE MAY SESSION THE FED'S POLICYSETTING OPEN
MARKET COMMITTEE CONVENED AGAIN BEHIND CLOSED DOORS LAST WEEK CONVERSATIONS
WITH FED OFFICIALS BEFORE THAT MEETING SUGGEST THAT THEY ARE UNLIKELY TO
RAISE SHORTTERM INTEREST RATES UNLESS THERE ARE NEW SIGNS OF HEIGHTENED
INFLATION OR UNEASINESS ABOUT INFLATION IN FINANCIAL MARKETS THE CENTRAL
BANK WON'T RELEASE A SUMMARY OF ITS LATEST MEETING FOR SIX WEEKS BUT FED
CHAIRMAN ALAN GREENSPAN IS TO DELIVER THE FED'S SEMIANNUAL REPORT TO
CONGRESS LATER THIS MONTH

AT THE MEETING IN MAY MR ANGELL EXPRESSED CONCERN ABOUT PERSISTING
INDICATIONS OF RISING INFLATION AND THE RELATED DETERIORATION IN
INFLATIONARY PSYCHOLOGY AND WANTED TO TIGHTEN RATES MORE RAPIDLY THAN DID
HIS COLLEAGUES MR BOEHNE CONFIDENT THAT THERE WOULDN'T BE AN EXTENDED
PERIOD OF HIGHER INFLATION DIDN'T WANT TO MOVE TOWARD HIGHER RATES AT ALL

THE SHIFT AT THE MAY MEETING WHEN THE OPEN MARKET COMMITTEE DECIDED NOT
TO ALTER INTEREST RATES IMMEDIATELY BUT TO LEAN TOWARD HIGHER RATES IN THE
WEEK AHEAD WAS REPORTED PREVIOUSLY THE OFFICIAL SUMMARY OF THOSE
DELIBERATIONS WAS RELEASED ON FRIDAY AFTER THE STANDARD LAG MANY ANALYSTS
SAY THEY BELIEVE THE 12MEMBER OPEN MARKET COMMITTEE LEFT THAT POLICY INTACT
AT LAST WEEK'S MEETING

BY CUSTOM A DIRECTIVE THAT IS BIASED TOWARD HIGHER RATES GIVES THE FED
CHAIRMAN THE LEEWAY TO INCREASE THE FEDERAL FUNDS RATE BY AS MUCH AS
ONEHALF PERCENTAGE POINT WITHOUT SEEKING A VOTE OF THE OPEN MARKET
COMMITTEE IF ECONOMIC CONDITIONS WARRANT THE FED HAS BEEN HOLDING THE
FEDERAL FUNDS RATE AT WHICH BANKS MAKE OVERNIGHT LOANS TO EACH OTHER AT 3
SINCE SEPTEMBER

HOWEVER IN AN UNUSUAL STEP THE COMMITTEE AGREED IN MAY WITH A PROPOSAL BY
MR GREENSPAN TO CALL AN INTERIM MEETING MOST LIKELY A TELEPHONE
CONFERENCE CALL IN THE EVENT THAT A TIGHTENING OF RATES WAS CONTEMPLATED
THAT REFLECTED THE SPECIAL NATURE OF CURRENT INFLATION CONCERNS AND
ATTENDANT UNCERTAINTIES ACCORDING TO THE SUMMARY

IN THE PERIOD LEADING UP TO THE MAY MEETING INFLATION SEEMED TO BE PICKING
UP EVEN THOUGH THE ECONOMY REMAINED SLUGGISH CONSUMER PRICES WERE CLIMBING
AT FASTER THAN A 4 ANNUAL RATE THROUGH APRIL COMPARED WITH LESS THAN 3
FOR 1992 AND WHOLESALE PRICES IN APRIL SHOT UP AT THEIR FASTEST PACE IN 2
1/2 YEARS

LAST MONTH HOWEVER THE LABOR DEPARTMENT REPORTED THAT THE PRODUCER PRICE
INDEX WAS FLAT AND CONSUMER PRICES ROSE ONLY MODESTLY IN MAY TWO KEY
INDICATORS OF INFLATION PRODUCER AND CONSUMER PRICE DATA FOR JUNE ARE DUE
OUT THIS WEEK THE PREVAILING VIEW AMONG ECONOMISTS IS THAT THE NEWS ON
INFLATION WILL CONTINUE TO BE ENCOURAGING

ONE POTENTIAL TROUBLE SPOT HOWEVER IS COMMODITY PRICES FLOODING IN THE
MIDWEST HAS DRIVEN UP THE PRICE OF GRAIN AND OTHER ITEMS THE FED IS
SPENDING A GREAT DEAL OF TIME TRYING TO ASSESS WHETHER COMMODITY PRICE
RUNUPS ARE SPECIFIC OR LIKELY TO SPREAD THROUGHOUT THE ECONOMY FED GOV
SUSAN PHILLIPS SAID LAST WEEK

MAY'S 102 VOTE TO LEAN TOWARD HIGHER RATES CAME DESPITE THE VIEW AMONG SOME
FED OFFICIALS THAT GIVEN THE SLOW EXPANSION OF THE ECONOMY THE SOMEWHAT
QUICKENED PACE OF INFLATION MIGHT WELL PROVE TO BE TEMPORARY BUT IT WAS
DECIDED THAT WAITING TOO LONG TO COUNTER ANY EMERGING UPTREND  WOULD
EXACERBATE INFLATIONARY PRESSURES AND REQUIRE MORE SUBSTANTIAL AND MORE
DISRUPTIVE POLICY MOVES LATER 9307120161 930712 FOREIGN EXCHANGE 
DOLLAR APPEARS SET FOR FURTHER GAINS AMID TENSIONS IN EUROPE'S CURRENCIES
  BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL

NEW YORK THE DOLLAR SEEMS POISED TO MOVE HIGHER THIS WEEK AMID A FRESH
ROUND OF TENSIONS IN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM

THE US CURRENCY SURGED FRIDAY AS THE FRENCH FRANC WHICH IS AT THE CENTER
OF THE ERM TUMULT WEAKENED AGAINST THE MARK DESPITE APPARENT CENTRAL BANK
INTERVENTION

IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 17225 MARKS UP FROM
17023 MARKS LATE THURSDAY THE DOLLAR'S INTRADAY PEAK AGAINST THE MARK WAS
ITS HIGHEST LEVEL AGAINST THE GERMAN CURRENCY SINCE IT TOUCHED 17410 MARKS
ON SEPT 6 1991

THE US CURRENCY ALSO CHANGED HANDS IN LATE NEW YORK TRADING FRIDAY AT
10995 YEN UP FROM 10855 YEN

ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10975 YEN AND AT
17198 MARKS

THE DOLLAR'S FIRMNESS AGAINST THE MARK WAS DIRECTLY RELATED TO THE
EMERGING CRISIS IN THE ERM SAID SIMON FISCHER ASSOCIATE DIRECTOR AT SWISS
BANK CORP PEOPLE WOULD RATHER BE OUT OF THE ERM ENTIRELY HE SAID

ANGELO EVANGELISTA VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT BANK OF
BOSTON SAID IT WILL TAKE HERCULEAN EFFORTS BY BOTH THE BANK OF FRANCE AND
THE GERMAN BUNDESBANK TO AVOID BIG TROUBLES FOR THE FRANC THE FRENCH
CENTRAL BANK MIGHT HAVE TO INTERVENE HEAVILY AND THE GERMAN CENTRAL BANK
MIGHT HAVE TO LOWER INTEREST RATES FURTHER TO STAVE OFF A MAJOR CRISIS HE
SAID

THE PRESSURES ON THE FRANC BEGAN TO MOUNT LATE WEDNESDAY WITH THE REPORT OF
A 06 CONTRACTION IN THE FRENCH FIRSTQUARTER GROSS DOMESTIC PRODUCT
FRIDAY THE MARKET WAS AWASH WITH BEARISH RUMORS INCLUDING ONE THAT FRANCE
WOULD FOLLOW BRITAIN AND ITALY OUT OF THE ERM AND ALLOW THE FRANC TO FLOAT

FRENCH PRIME MINISTER EDOUARD BALLADUR CHARACTERIZED TALK OF THE FRANC'S
FLOTATION AS LAUGHABLE AND ABSURD BUT UNCERTAINTY ABOUT THE CURRENCY'S
FUTURE CONTINUED LATE FRIDAY IN NEW YORK THE MARK TRADED AT 33998 FRANCS
A GAIN FOR THE GERMAN CURRENCY FROM 33979 FRANCS THURSDAY

THE FRANC ALSO SAGGED AGAINST THE DOLLAR AND THIS WAS ONE CAUSE OF THE
DOLLAR'S OVERALL RISE SWISS BANK'S MR FISCHER SAID BUT THE GENERAL TONE
OF EUROPEAN CURRENCY INSTABILITY CREATED BY THE FRANC'S DIFFICULTIES
PROBABLY WAS A MORE IMPORTANT FACTOR IN THE DOLLAR'S GAINS SAID MR
EVANGELISTA OF BANK OF BOSTON

DURING RECENT PERIODS OF ERM TENSION THE MARK HAS TENDED TO BENEFIT BECAUSE
OF ITS ROLE AS THE GRID'S ANCHOR CURRENCY AND GERMANY'S COMPARATIVELY
HEALTHY ECONOMIC CONDITION MR EVANGELISTA SAID BUT NOW IT'S EMINENTLY
CLEAR THAT THE GERMANS ARE IN TROUBLE HE ADDED THE MARK IS NO LONGER THE
  HAVEN OF EUROPE

THE MARKET'S NEXT TARGET FOR THE DOLLAR IS 17500 MARKS SAID CHARLES
COSSENTINO VICE PRESIDENT AT DEUTSCHE GENOSSENSCHAFTSBANK AS HAS BEEN THE
CASE FOR THE PAST SEVERAL MONTHS HE SAID EXPECTATIONS ARE FOR GERMAN
INTEREST RATES TO GO LOWER WHILE US RATES HOLD STEADY OR PERHAPS RISE

MEANWHILE SCOTT GROMACKI A TRADER AT THE NATIONAL BANK OF DETROIT SAID
THE DOLLAR'S STRONG ADVANCE AGAINST THE YEN FRIDAY WAS TIED PRIMARILY TO
TECHNICAL FACTORS THE 10900YEN LEVEL HAD BEEN AN IMPORTANT TECHNICAL
RESISTANCE POINT AND WHEN IT WAS BREACHED THE DOLLAR LEAPT HIGHER HE
SAID

RUMORS THAT THE BANK OF JAPAN MIGHT CUT ITS DISCOUNT RATE IN THE NEXT FEW
WEEKS HAVE LENT SOME SUPPORT TO THE DOLLAR AS WELL HE SAID

ADDITIONALLY CURRENCY MARKET PLAYERS SAID A PERCEPTION HAS TAKEN HOLD IN
MUCH OF THE MARKET IN RECENT DAYS THAT THE DOLLAR MIGHT HAVE FOUND A BOTTOM
AGAINST THE JAPANESE CURRENCY AROUND 10500 YEN THIS HAS CONTRIBUTED TO
DOLLAR BUYING THROUGHOUT THE WEEK THEY SAID

THE DOLLAR'S POSTWORLD WAR II LOW AGAINST THE YEN 10482 YEN WAS SET JUNE
15 9307120160 930712 CALIFORNIA INSURER DENIES ALLEGATIONS OF
DISCRIMINATION  BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET
JOURNAL

MONTEREY CALIF CALIFORNIA INSURANCE GROUP A CLOSELY HELD PROPERTY AND
CASUALTY CONCERN DENIED CHARGES OF DISCRIMINATION BY CALIFORNIA'S
DEPARTMENT OF INSURANCE

WE DO NOT AND NEVER HAVE SOLD INSURANCE ON THE BASIS OF RACIAL OR PERSONAL
CHARACTERISTICS SAID PETER CAZZOLLA PRESIDENT AND CHIEF EXECUTIVE
OFFICER HE SAID THE ALLEGATIONS ARE BASED ON THE CLAIMS OF A DISGRUNTLED
FORMER EMPLOYEE

LAST WEEK CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI CHARGED THE
GROUP WITH 252 VIOLATIONS CONNECTED TO ITS ALLEGED REFUSAL TO SELL INSURANCE
IN CERTAIN PARTS OF SAN FRANCISCO AND ITS ALLEGED PRACTICE OF SETTING
INSURANCE RATES BASED ON GEOGRAPHIC AREA IN LOS ANGELES COUNTY MR
GARAMENDI SAID HE WOULD SEEK THE MAXIMUM PENALTY OF 25 MILLION AGAINST THE
COMPANY

NEVER BEFORE HAVE WE SEEN SUCH BLATANT EVIDENCE OF SYSTEMATIC INSURANCE
REDLINING MR GARAMENDI SAID THE DEPARTMENT'S ACTIONS SHOULD MAKE IT
VERY CLEAR TO THE INSURANCE INDUSTRY THAT REDLINING WILL NOT BE TOLERATED
THE DEPARTMENT BEGAN INVESTIGATING THE COMPANY'S RATING AND UNDERWRITING
PRACTICES IN MARCH AFTER A COMPLAINT FROM A FORMER EMPLOYEE THE EMPLOYEE
PROVIDED VERY SPECIFIC EVIDENCE OF DISCRIMINATION INCLUDING MAPS WITH
HIGHLIGHTED MARKETS WHERE INSURANCE ALLEGEDLY COULD AND COULDN'T BE SOLD A
DEPARTMENT SPOKESWOMAN SAID

IN ADDITION TO ALLEGING DISCRIMINATION BASED ON LOCATION MR GARAMENDI
CHARGES THE GROUP VIOLATED LAWS BY USING APPLICANTS' SEXUAL PREFERENCE OR
RACE AS A BASIS FOR REFUSING TO WRITE POLICIES

THE COMPANY ALSO IS ACCUSED OF ORDERING EMPLOYEES TO DESTROY DOCUMENTS THAT
COULD HAVE BEEN EVIDENCE OF THE ALLEGED MISCONDUCT AND WITHHOLDING
INFORMATION FROM OR PROVIDING MISLEADING INFORMATION TO STATE INVESTIGATORS

CALIFORNIA INSURANCE GROUP SAID IT EXPRESSED ASTONISHMENT AT THE CHARGES
AND SAID DEPARTMENT OFFICIALS WERE UNWILLING TO MEET WITH THE GROUP BEFORE
MR GARAMENDI'S NEWS CONFERENCE ANNOUNCING THE CHARGES THE DEPARTMENT
SPOKESWOMAN SAID THE COMPANY REQUESTED A MEETING DURING THE INVESTIGATION
WE THOUGHT IT WAS INAPPROPRIATE TO MEET UNTIL ALL THE INFORMATION WAS
GATHERED SHE SAID

THE COMPANY MUST RESPOND FORMALLY TO THE CHARGES THIS WEEK 9307120159
930712 CLINTON REASSURES SEOUL ON US FORCES WARNS NORTH KOREA ON
NUCLEAR PROGRAM  BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL
STREET JOURNAL

PANMUNJOM SOUTH KOREA PRESIDENT CLINTON TOURED THE KOREAN DEMILITARIZED
ZONE AND GAVE A PEP TALK TO THE TROOPS HOPING TO BOLSTER HIS IMAGE WITH THE
MILITARY AND REASSURE SOUTH KOREA THAT US FORCES ARE HERE TO STAY

THE BACKDROP FOR SUNDAY'S VISIT IS A GROWING CONCERN THAT NORTH KOREA MIGHT
BE PLANNING TO BUILD A NUCLEAR BOMB MR CLINTON CALLED ON THE NORTH KOREANS
TO DESIST FROM SUCH A MOVE AND ISSUED A THINLY VEILED THREAT TO RETALIATE
FIERCELY IF THEY USED THEM IF THEY DID HE SAID IT WILL BE THE END OF
THEIR COUNTRY

NEGOTIATIONS TO PREVENT NORTH KOREA FROM WITHDRAWING FROM THE NUCLEAR
NONPROLIFERATION TREATY AND TO ALLOW INSPECTIONS OF ITS NUCLEAR PLANTS ARE
TO CONTINUE THIS WEEK IN THE MEANTIME SOUTH KOREAN PRESIDENT KIM YOUNG SAM
TOLD REPORTERS THIS ISSUE POSES A SERIOUS THREAT NOT ONLY TO PEACE ON THE
KOREAN PENINSULA BUT ALSO TO PEACE IN NORTHEAST ASIA AND THE WORLD AS A
WHOLE PRESIDENT CLINTON AGREED

AT THE RAINDRENCHED DEMILITARIZED ZONE THE PRESIDENT STRODE ONTO THE
BRIDGE OF NO RETURN ON WHICH PRISONERS OF WAR HAVE BEEN EXCHANGED IN THE
PAST AS HE DID ARMED NORTH KOREAN SOLDIERS MONITORED HIM WITH BINOCULARS
FROM CONCRETE GUARD TOWERS NEARBY A LARGE KOREANLANGUAGE PLACARD ON THE
HILLSIDE READ YANKEE GO HOME

BUT THE PRESIDENT SAID AMERICANS WOULD REMAIN AS LONG AS NORTH KOREA
MENACED AND A HANGARFULL OF US SOLDIERS LATER GREETED THE NEWS WITH
WHOOPS AND HOLLERS OF APPRECIATION ONE OF THE MOST ENTHUSIASTIC RESPONSES
MR CLINTON HAS GOTTEN FROM A MILITARY AUDIENCE YOUR WORK IS VITAL AND I
ADMIRE YOUR SERVICE HE TOLD THEM AND THEN PLAYED THE SAXOPHONE AS PART OF
HIS THANKS

THE VISIT STOOD IN CONTRAST WITH THE REST OF MR CLINTON'S ASIAN TOUR WHICH
BEGAN LAST WEEK WITH A MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS
IN TOKYO THERE HE STRESSED THE BENEFIT TO AMERICAN WORKERS FROM US
POLICIES HERE HE CONCENTRATED MORE ON FOREIGN REACTION ATTACKING THE NORTH
KOREANS REASSURING THE SOUTH KOREANS AND PRESSING FOR THE REUNIFICATION OF
THEIR TWO NATIONS

ALSO IN CONTRAST TO THE TOKYO TRIP WHERE HE REPEATEDLY PRODDED THE JAPANESE
TO OPEN THEIR MARKETS FURTHER MR CLINTON PRAISED SOUTH KOREA FOR ITS
SHRINKING TRADE SURPLUS WITH THE US THAT LEFT FOREIGN BUSINESSMEN
WONDERING WHERE THE PRESIDENT STANDS IN THE STRUGGLE BETWEEN MULTINATIONAL
COMPANIES AND SEOUL ON MARKETACCESS AND TRADE ISSUES

AFTER A MEETING WITH MR KIM ON SATURDAY IN SEOUL MR CLINTON SAID THE
NARROWING TRADE SURPLUS REFLECTED PROGRESS IN REDUCING SOUTH KOREA'S TARIFF
AND NONTARIFF BARRIERS BUT SOME ARGUE THAT THE TREND REFLECTS THE
DECLINING COMPETITIVENESS OF KOREAN GOODS RESULTING FROM RISING LABOR AND
FINANCING COSTS MORE THAN IMPROVED ACCESS FOR US IMPORTS

ONE BYPRODUCT OF THE TWODAY STAY IN SOUTH KOREA WAS MEANT FOR US
CONSUMPTION BY STANDING FIRM AGAINST AN ACKNOWLEDGED ENEMY NORTH KOREA
 AND HIGHLIGHTING HIS ROLE AS COMMANDERINCHIEF MR CLINTON WAS WORKING
TO DISPEL THE LINGERING RESENTMENT AGAINST HIM IN THE ARMED FORCES THAT
STEMS FROM HIS AVOIDANCE OF MILITARY SERVICE DURING THE VIETNAM WAR TO
INSULATE THE PRESIDENT FROM POSSIBLE CRITICISM THE ARMY ALLOWED ONLY
SELECTED SOLDIERS TO BE INTERVIEWED BY VISITING REPORTERS

ANOTHER SOURCE OF RESENTMENT MR CLINTON'S DRIVE TO ALLOW HOMOSEXUALS IN
THE MILITARY WASN'T DEALT WITH DURING THE VISIT HIS AIDES SAID THE
PRESIDENT WON'T EVEN CONSIDER THE ISSUE UNTIL HE RETURNS TO WASHINGTON
MIDWEEK AFTER A BRIEF VACATION IN HAWAII

BUT GEORGE STEPHANOPOULOS A SENIOR AIDE SAID ANY TRANSITION TOWARD
ALLOWING HOMOSEXUALS TO SERVE WOULD PROBABLY BE GRADUAL EVEN COLIN POWELL
THINKS IT WILL HAPPEN OVER TIME SAID MR STEPHANOPOULOS REFERRING TO THE
CHAIRMAN OF THE JOINT CHIEFS OF STAFF

STEVE GLAIN CONTRIBUTED TO THIS ARTICLE 9307120158 930712 AMERICA WEST
TRAFFIC DROPS

PHOENIX AMERICA WEST AIRLINES SAID ITS JUNE TRAFFIC FELL 75 TO 9721
MILLION REVENUE PASSENGER MILES FROM 11 BILLION LAST YEAR

A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE

LOAD FACTOR OR PERCENTAGE OF SEATS FILLED INCREASED TO 696 FROM 647

FOR THE FIRST SIX MONTHS OF THE YEAR TRAFFIC FELL ABOUT 12 TO 53 BILLION
REVENUE PASSENGER MILES FROM SIX BILLION LOAD FACTOR INCREASED TO 629
FROM 606 9307120157 930712 CLINTON GAS DRILLS WELLS

COLUMBUS OHIO CLINTON GAS SYSTEMS INC SAID IT DRILLED THREE EXPLORATORY
WELLS IN THE PAST 30 DAYS AND ALL RESULTED IN THE DISCOVERY OF OIL AND
NATURAL GAS

THE WELLS ARE IN THE ROSE RUN FORMATION IN MUSKINGUM COUNTY OHIO ONE IS
PRODUCING ABOUT 80 BARRELS OF OIL AND MORE THAN 100000 CUBIC FEET OF
NATURAL GAS A DAY THE COMPANY SAID THE SECOND IS ALMOST READY TO BEGIN
PRODUCTION AND THE THIRD WAS JUST DRILLED THURSDAY 9307120156 930712
RENO AIR REPORTS JUNE TRAFFIC

RENO NEV RENO AIR INC REPORTED THAT IT FLEW 552 MILLION REVENUE
PASSENGER MILES IN JUNE AND HAD A TOTAL CAPACITY FOR THE MONTH OF 1114
MILLION AVAILABLE SEAT MILES

THE AIRLINE CARRIED 108745 REVENUE PASSENGERS IN JUNE PRODUCING A LOAD
FACTOR OF 495 PERCENT LOAD FACTOR FOR THE SECOND QUARTER WAS 534 PERCENT
AND 603 PERCENT FOR THE FIRST SIX MONTHS OF 1993

A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AIRLINE
HAS OPERATED FOR ONE YEAR 9307120155 930712 PHONE FIRMS LIKELY TO POST
 QUARTERLY GAINS  BABY BELLS' GTE TO SHOW SECONDPERIOD BOOST 
IN OPERATING EARNINGS  BY GAUTAM NAIK STAFF REPORTER OF THE WALL
STREET JOURNAL

MAJOR LOCAL PHONE COMPANIES ARE EXPECTED TO POST MODERATELY HIGHER
SECONDQUARTER OPERATING EARNINGS GENERALLY IN LINE WITH FIRSTQUARTER
EARNINGS GROWTH PARTLY REFLECTING A SLOW RECOVERY IN MOST REGIONAL
ECONOMIES

WE DON'T SEE ANY MAJOR SURPRISES FOR THE SECOND QUARTER SAID DANIEL
REINGOLD ANALYST AT MERRILL LYNCH & CO IT'S STARTING TO LOOK LIKE THE
ECONOMIC REBOUND IS GOING TO HAPPEN IN THE SECOND HALF OF THE YEAR

MOST ANALYSTS EXPECT THE SEVEN BABY BELLS AND GTE CORP TO POST OPERATING
GAINS OF 5 TO 7 FROM THE YEAREARLIER RESULTS

SOUTHWESTERN BELL CORP OF SAN ANTONIO AMERITECH CORP OF CHICAGO GTE
STAMFORD CONN U S WEST INC OF DENVER AND BELL ATLANTIC CORP
PHILADELPHIA ARE EACH EXPECTED TO BENEFIT FROM RELATIVELY STRONGER REGIONAL
ECONOMIES IN THE AREAS IN WHICH THEY OPERATE SAN FRANCISCOBASED PACIFIC
TELESIS GROUP HOWEVER CONTINUES TO SUFFER FROM PERSISTENTLY WEAK
CONDITIONS IN CALIFORNIA AND THE SLUGGISH RECOVERY IN THE NEW YORK AND
BOSTON REGIONS IS EXPECTED TO SLOW THE IMPROVEMENT IN NYNEX CORP'S RESULTS

ADDITIONALLY PACIFIC TELESIS HAS BEEN HURT BY RATE CUTS SAYS CHARLES W
SCHELKE ANALYST AT SMITH BARNEY SHEARSON AS A RESULT THE COMPANY'S
EARNINGS WERE LOWER BY 28 MILLION OR FOUR TO FIVE CENTS A SHARE IN THE
SECOND QUARTER HE ESTIMATES PACIFIC TELESIS IS EXPECTED TO REPORT FLAT
EARNINGS OF ABOUT 71 CENTS A SHARE WITHOUT INCLUDING THE EFFECT OF ONETIME
ITEMS ACCORDING TO ANALYSTS' CONSENSUS ESTIMATES PROVIDED BY FIRST CALL A
FINANCIALINFORMATION SERVICE

MR SCHELKE SAID THAT CALIFORNIA REGULATORS ARE EXPECTED TO LOWER TOLL RATES
FOR LONGDISTANCE CARRIERS IN THE THIRD QUARTER AND OFFSET THOSE DECREASES
BY BOOSTING THE RATES OF LOCAL PHONE COMPANIES THIS WILL DEFINITELY HELP
PACIFIC TELESIS HE SAID BY BRINGING RATES MORE IN LINE WITH COSTS

SECONDQUARTER RESULTS WILL BE PEPPERED WITH VARIOUS ONETIME ITEMS
INCLUDING CHARGES TAKEN BY MANY COMPANIES THAT TOOK ADVANTAGE OF LOW
INTEREST RATES AND REFINANCED THEIR DEBT

ON A PURELY OPERATIONAL BASIS HOWEVER AMERITECH IS EXPECTED TO POST
EARNINGS OF 138 OR 139 A SHARE UP FROM 128 BELL ATLANTIC OF 89 CENTS
TO 91 CENTS A SHARE UP FROM 83 CENTS ATLANTABASED BELLSOUTH CORP OF 91
OR 92 CENTS A SHARE UP FROM 87 CENTS WHITE PLAINS NYBASED NYNEX OF
167 OR 168 UP FROM 162 SOUTHWESTERN BELL OF ABOUT 55 CENTS UP FROM
51 CENTS AND U S WEST OF 76 OR 77 CENTS UP FROM 71 CENTS

GTE IS EXPECTED TO POST EARNINGS OF ABOUT 51 CENTS A SHARE UP FROM 45
CENTS NOT INCLUDING THE EFFECT OF A RECENTLY ANNOUNCED ONETIME CHARGE OF
46 MILLION OR FIVE CENTS A SHARE FOR COSTS RELATED TO A WORK FORCE
REDUCTION

ANALYSTS SAID THE PHONE COMPANIES' SECONDQUARTER RESULTS HAVE BEEN
FORTIFIED BY A STRONG SEASONAL PICKUP IN CELLULAR USAGE COMPARED WITH THE
FIRST QUARTER WITH SOUTHWESTERN BELL GTE AND U S WEST EXPECTED TO LEAD THE
PACK ACCORDING TO LINDA MELTZER ANALYST AT UBS SECURITIES INC

ANALYSTS ESTIMATE THAT ACCESS LINES IN THE SECOND QUARTER FOR THE BABY BELLS
AND GTE SHOULD GROW 29 FROM A YEARAGO THE GROWTH RATE IN THE FIRST
QUARTER WAS 2

EVEN IF CONDITIONS CONTINUE TO IMPROVE IN THE SECOND HALF THE PHONE
COMPANIES AREN'T LIKELY TO OUTPERFORM THE OVERALL ECONOMY THE BABY BELLS
AND GTE ARE CURRENTLY DOING BETTER THAN THE ECONOMY SAYS ROBERT MORRIS A
GOLDMAN SACHS & CO ANALYST BUT THEY WON'T BE DOING THAT WHEN THE ECONOMY
GETS A KICK THE REASON IS THAT EVEN WHEN PEOPLE ARE OUT OF WORK THE PHONE
IS OFTEN THE LAST THING TO GO 9307120154 930712 MIRAGE EXTENDS EXCHANGE
OFFER

LAS VEGAS MIRAGE RESORTS INC SAID IT EXTENDED THE EXPIRATION DATE OF ITS
OFFER TO EXCHANGE AS MUCH AS 1129 MILLION PRINCIPAL AMOUNT OF A NEW ISSUE
OF 9 1/4 SENIOR SUBORDINATED NOTES DUE JULY 1 2001 FOR AN EQUAL PRINCIPAL
AMOUNT OF 12 3/4 UNSECURED NOTES DUE 1999 OF GNLV FINANCE CORP A
FINANCING SUBSIDIARY OF MIRAGE TO WEDNESDAY FROM LAST FRIDAY THE CASINO
COMPANY SAID THAT AS OF LAST FRIDAY ABOUT 67 MILLION PRINCIPAL AMOUNT OF
THE 12 3/4 NOTES HAD BEEN TENDERED 9307120153 930712 PROSPECT STREET'S
REDEMPTION

BOSTON PROSPECT STREET HIGH INCOME PORTFOLIO INC SAID IT PLANS A PARTIAL
REDEMPTION OF ITS PREFERRED STOCK

THE REDEMPTION DATE IS JULY 27 AND THE PRICE WILL BE 100000 A SHARE PLUS
AN AMOUNT EQUAL TO THE ACCRUED AND UNPAID DIVIDENDS ON SUCH SHARES PROSPECT
SAID IT WILL REDEEM 100 OF ITS 300 PREFERRED SHARES OUTSTANDING
9307120152 930712 FIVE JAPAN BANKS WITHDRAW SUPPORT TO DEVELOPER EIE 
 BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL

TOKYO IN WHAT MAY PRESAGE ANOTHER WAVE OF PAINFUL RETRENCHMENT BY
JAPANESE LENDERS FIVE MAJOR JAPANESE BANKS HAVE WITHDRAWN FINANCIAL
ASSISTANCE FROM EIE INTERNATIONAL CORP A RESORT DEVELOPMENT FIRM WITH
EXTENSIVE HOLDINGS IN THE US AND AROUND THE WORLD ACCORDING TO JAPANESE
PRESS REPORTS

THE REPORTS WHICH CITED BANK SOURCES SAID THE FIVE LENDERS CUT OFF SUPPORT
FOR EIE BECAUSE OF A DISPUTE WITH MEMBERS OF THE TAKAHASHI FAMILY THE
COMPANY'S PRINCIPAL SHAREHOLDERS ABOUT RESTRUCTURING ITS ESTIMATED 700
BILLION YEN 644 BILLION DEBT

LONGTERM CREDIT BANK OF JAPAN LTD THE COMPANY'S PRIMARY LENDER PLANS TO
WRITE OFF ABOUT HALF OF ITS 200 BILLION YEN IN LOANS TO EIE DURING THE
FISCAL YEAR ENDING MARCH 31 1994 ACCORDING TO THE REPORTS LONGTERM
CREDIT OFFICIALS COULD NOT BE REACHED TO COMMENT

THE REPORTS DID NOT INDICATE WHETHER THE OTHER FOUR BANKS SAID TO BE
WITHDRAWING FINANCIAL ASSISTANCE MITSUI TRUST & BANKING CO SUMITOMO
TRUST & BANKING CO MITSUBISHI TRUST & BANKING CO AND NIPPON CREDIT BANK
LTD WOULD ALSO WRITE OFF LOANS TO EIE

EIE A CLOSELY HELD CONCERN WITH INVESTMENTS IN THE US BRITAIN
AUSTRALIA AND HONG KONG HAS BEEN IN A RESTRUCTURING PROGRAM SINCE 1991
THE COMPANY EMBARKED ON A BOLD REALESTATE SHOPPING SPREE DURING THE YEARS
OF JAPAN'S ECONOMIC BOOM ACQUIRING OFFICE TOWERS GOLF COURSES AND A RITZY
CHAIN OF REGENT AND HYATT HOTELS BUT HIGHER INTEREST RATES AND THE COLLAPSE
OF JAPAN'S DOMESTIC PROPERTY MARKET DERAILED THE EXPANSION PLANS

PRESS REPORTS SAID THAT THE FIVE BANKS HAVE RECALLED A TEAM OF EXECUTIVES
DISPATCHED TO OVERSEE THE RESTRUCTURING EFFORT AND THAT THE BANKS' DECISION
TO CUT OFF AID TO EIE HAS BEEN APPROVED BY OFFICIALS AT JAPAN'S MINISTRY OF
FINANCE

THE BIG JAPANESE BANKS HAVE HEAVY EXPOSURE TO TROUBLED REALESTATE CONCERNS
BUT THUS FAR OFFICIALS AT THE FINANCE MINISTRY FEARING CHAOS IN JAPAN'S
FINANCIAL SYSTEM HAVE DISCOURAGED THE BANKS FROM CUTTING THEIR LOSSES

IN A SIMILAR CASE MITSUI TRUST SEVERED ITS MAIN BANK RELATIONSHIP AND
WITHDREW FINANCIAL SUPPORT FROM AZABU BUILDING CO A ONCE HIGHFLYING
REALESTATE CONCERN CONTROLLED BY PROPERTY BARON KITARO WATANABE AZABU'S
DEBT IS ESTIMATED TO EXCEED 740 BILLION YEN

THE NIHON KEIZAI SHIMBUN A FINANCIAL DAILY NEWSPAPER QUOTED EIE PRESIDENT
HARUNORI TAKAHASHI WHO OWNS A CONTROLLING STAKE IN THE COMPANY AS SAYING
EIE HAS SUFFICIENT FINANCIAL RESOURCES TO RESTRUCTURE ITS PROPERTY HOLDINGS
INDEPENDENT OF FURTHER ASSISTANCE FROM THE BANKS 9307120151 930712
CHAMBERS COMPLETES TALKS WITH LENDERS RESTRUCTURES PACTS

PITTSBURGH CHAMBERS DEVELOPMENT CO SAID IT HAS COMPLETED TALKS WITH
THREE PRINCIPAL LENDER GROUPS BY RESTRUCTURING BANK AND SENIOR NOTE
AGREEMENTS

ALSO THE COMPANY SAID GEORGE R JOHANNES 54 YEARS OLD RESIGNED AS
EXECUTIVE VICE PRESIDENT OF FINANCE LAST YEAR CHAMBERS SAID MR JOHANNES
WOULD BE NAMED CHIEF FINANCIAL OFFICER AS OF NOV 1 SUCCEEDING WILLIAM
RODGERS JR WHO WOULD ASSUME ANOTHER CORPORATE POST HOWEVER CHAMBERS NOW
SAYS THE TRANSITION NEVER OCCURRED AND DECLINES TO SAY WHY MR JOHANNES LEFT
THE COMPANY MR JOHANNES COULDN'T BE REACHED MR RODGERS REMAINS CHIEF
FINANCIAL OFFICER

THE WASTE MANAGEMENT CONCERN ABANDONED ITS ACCOUNTING METHODS IN EARLY 1992
AND UNDERWENT AN EXTENSIVE OUTSIDE AUDIT THAT DISCLOSED IT HAD ACTUALLY HAD
LOSSES EVERY YEAR SINCE GOING PUBLIC IN 1985 WHILE IT REPORTED PROFITS
CHAMBERS IS UNDER INVESTIGATION BY THE US ATTORNEY'S OFFICE IN BROOKLYN
NY OVER ALLEGATIONS IT ISSUED FRAUDULENT FINANCIAL STATEMENTS A SEPARATE
INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION CONTINUES

UNDER THE LENDER AGREEMENT CHAMBERS SAID PRINCIPAL PAYMENTS ON SENIOR NOTES
SCHEDULED TO BE MADE DURING THE NEXT TWO YEARS WILL BE DEFERRED UNTIL JULY
1 1995 WHEN 75 MILLION PLUS ANY STILLUNPAID DEFERRED PAYMENTS WILL BE
DUE THE COMPANY WILL APPLY HALF OF THE NET PROCEEDS FROM NONCORE ASSET
SALES AND EXCESS UNRESTRICTED CASH BALANCES TO DEBT REDUCTION

CHAMBERS SAID IT IS CONTINUING TO STREAMLINE OPERATIONS BY REDUCING OVERHEAD
AND LOWERING OPERATING COSTS FINANCIAL RESULTS FOR 1992 WHICH HAVE NOT YET
BEEN RELEASED AND ARE EXPECTED SOON AND RESULTS FOR THE 1993 FIRST QUARTER
WILL SHOW A FAVORABLE TREND IN OPERATING PERFORMANCE DURING THE PAST 12
MONTHS CHAMBERS HAS REDUCED LIABILITIES BY NEARLY 100 MILLION
9307120150 930712 CANADA'S EMPLOYMENT IS UP

OTTAWA CANADIAN EMPLOYMENT INCREASED 08 OR BY 99000 FROM MAY
STATISTICS CANADA SAID

THE GOVERNMENT AGENCY SAID THE LABOR MARKET SHOWED A MARKED IMPROVEMENT
LAST MONTH JOB GROWTH WAS PARTICULARLY STRONG IN BRITISH COLUMBIA AND
ALBERTA IT SAID

THE UNEMPLOYMENT RATE DECLINED ONLY SLIGHTLY DROPPING TO 113 OF THE LABOR
FORCE IN JUNE FROM 114 IN MAY 9307120149 930712 FINANCING BUSINESS 
GENZYME TRANSGENICS CORP

GENZYME TRANSGENICS CORP FRAMINGHAM MASS SAID IT MADE AN INITIAL PUBLIC
OFFERING OF 15 MILLION COMMON SHARES PRICED AT 8 EACH AFTER THE OFFERING
WHICH IS BEING MANAGED BY PAINEWEBBER INC AND KIDDER PEABODY & CO
GENZYME TRANSGENICS WILL HAVE 55 MILLION SHARES OUTSTANDING GENZYME CORP
WILL OWN ABOUT 73 OF GENZYME TRANSGENICS' COMMON STOCK GENZYME TRANSGENICS
SAID IT GRANTED THE UNDERWRITERS AN OPTION TO PURCHASE AS MANY AS 225000
ADDITIONAL SHARES TO COVER OVERALLOTMENTS GENZYME TRANSGENICS DEVELOPS
RECOMBINANT PROTEINS FOR THERAPEUTIC AND DIAGNOSTIC USES GENZYME CORP IS A
HEALTHCARE PRODUCTS CONCERN BASED IN CAMBRIDGE MASS 9307120148 930712
TEREX UNIT'S VENTURE IN CHINA

WESTPORT CONN TEREX CORP A MANUFACTURER OF HEAVY CONSTRUCTION AND
MINING EQUIPMENT SAID ITS TEREX EQUIPMENT LTD UNIT WILL PRODUCE WHEELED
LOADERS AND ARTICULATED HAULERS IN CHINA IN A JOINT VENTURE WITH LINYI
CONSTRUCTION MACHINERY CO OF SHANDONG

TEREX WILL HOLD A MINORITY EQUITY STAKE IN THE NEW VENTURE A COMPANY
SPOKESMAN SAID THE CONTRACT IS TEREX'S SECOND JOINT VENTURE IN CHINA IT
HAS BEEN MANUFACTURING AND DISTRIBUTING RIGIDFRAME DUMP TRUCKS IN CHINA
SINCE 1990 IN A JOINT VENTURE WITH SECOND INNER MONGOLIAN MACHINERY CO OF
MONGOLIA 9307120147 930712 HONG KONG PORT ACTIVITY IN '92

HONG KONG THE HONG KONG GOVERNMENT SAID THE NUMBER OF SHIPS THAT ARRIVED
IN THE COLONY'S PORTS JUMPED 23 LAST YEAR

THE CENSUS AND STATISTICS BUREAU SAID 26052 SHIPS WITH A TOTAL CAPACITY OF
1347 MILLION NET REGISTERED TONS ARRIVED LAST YEAR AN INCREASE OF 4874
SHIPS OVER 1991 CAPACITY ROSE 13 TONNAGE OF CARGO DISCHARGED GREW 10 TO
584 MILLION TONS

THE NUMBER OF CONTAINER SHIPS GREW MOST SHARPLY WITH A RISE OF 1599 SHIPS
WHILE THE NUMBER OF SEMICONTAINER VESSELS ROSE BY 993 AND OIL TANKERS BY
546 BUT THE NUMBER OF SHIPS CARRYING LOGS AND TIMBER DECLINED BY 73

THE NUMBER OF CHINESEFLAGGED CARRIERS JUMPED BY 1659 SHIPS THOSE FROM
PANAMA BY 1129 THOSE FROM LIBERIA BY 321 AND THOSE FROM TAIWAN BY 202 A
MAJOR DECREASE OF 77 SHIPS WAS RECORDED FOR GERMANFLAGGED VESSELS

MEANWHILE THERE WERE 25939 OUTGOING SHIPS WITH A TOTAL CAPACITY OF 1345
MILLION NET REGISTERED TONS A RISE OF 22 IN NUMBER AND 13 IN CAPACITY
CHANGES IN THE NUMBER OF OUTGOING SHIP BY TYPE FLAG AND CAPACITY WERE ABOUT
THE SAME AS THOSE FOR INCOMING SHIPS 9307120146 930712 INTERNATIONAL 
WESTERN GERMAN RETAIL SALES

WIESBADEN GERMANY RETAIL SALES IN WESTERN GERMANY SLUMPED A REAL OR
INFLATIONADJUSTED 10 IN MAY FROM APRIL AND SKIDDED A REAL 62 FROM THE
YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID

THE FIGURES AREN'T ADJUSTED FOR THE NUMBER OF DAYS THAT STORES WERE IN
OPERATION OR FOR SEASONAL FACTORS 9307120145 930712 DELTA AIR JUNE
TRAFFIC FELL 24

ATLANTA DELTA AIR LINES REPORTED JUNE TRAFFIC FELL 24 FROM A YEAR
EARLIER

THE AIRLINE FLEW 73 BILLION REVENUE PASSENGER MILES DOWN FROM 75 BILLION
IN JUNE 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE
LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED DECREASED TO 638
FROM 667

FOR THE FIRST HALF DELTA'S TRAFFIC INCREASED 51 TO 392 BILLION REVENUE
PASSENGER MILES FROM 373 BILLION A YEAR EARLIER LOAD FACTOR ROSE TO 60
FROM 58 9307120144 930712 EATERIES INC RESTAURANT SALES

OKLAHOMA CITY EATERIES INC SAID SECONDQUARTER SALES AT ITS GARFIELD'S
RESTAURANTS CHAIN ROSE 48 TO 58 MILLION FROM 39 MILLION A YEAR EARLIER
SAMESTORE SALES OR SALES AT RESTAURANTS OPEN AT LEAST A YEAR CLIMBED
115

TOTAL SALES FOR THE SIX MONTHS INCREASED 54 TO 114 MILLION FROM 74
MILLION A YEAR EARLIER SAMESTORE SALES ROSE 97 9307120143 930712
ALCOA REVERSES 2NDQUARTER LOSS ON FLAT REVENUE  BY WENDY BOUNDS
 STAFF REPORTER OF THE WALL STREET JOURNAL

PITTSBURGH ALUMINUM CO OF AMERICA REVERSED A YEAREARLIER NET LOSS IN
THE SECOND QUARTER BUT EARNINGS BEFORE SPECIAL ITEMS SLIPPED 21 AMID A
DROP IN SHIPMENTS

THE DECLINE IN EARNINGS BEFORE SPECIAL ITEMS WAS SMALLER THAN EXPECTED BUT
ANALYSTS SAID THAT DIDN'T INDICATE THAT THE ALUMINUM INDUSTRY IS RETURNING
TO HEALTH THEY SAID ALCOA WOULD HAVE BEEN UNPROFITABLE IF NOT FOR ITS
ALUMINA BUSINESS IN AUSTRALIA AND THEY EXPECT TWO OTHER BIG ALUMINUM
PRODUCERS REYNOLDS METALS CO AND ALCAN ALUMINIUM LTD TO POST LOSSES FOR
THE QUARTER

ALCOA THE WORLD'S LARGEST ALUMINUM COMPANY REPORTED NET INCOME OF 353
MILLION OR 40 CENTS A SHARE COMPARED WITH A NET LOSS OF 482 MILLION OR
57 CENTS A SHARE A YEAR EARLIER BEFORE SPECIAL ITEMS WHICH INCLUDED
CHARGES FOR EMPLOYMENT REDUCTIONS AND LABOR AGREEMENTS AND A CREDIT FROM A
REDUCTION IN AUSTRALIA'S CORPORATE TAX RATE EARNINGS IN THE LATEST PERIOD
WERE 447 MILLION OR 51 CENTS A SHARE A YEAR EARLIER EARNINGS BEFORE
CHARGES WERE 565 MILLION OR 65 CENTS A SHARE

REVENUE WAS FLAT AT 24 BILLION AS HIGHER NONALUMINUM PRODUCT SALES OFFSET
A 5 DECLINE IN ALUMINUM SHIPMENTS BUT ALCOA DID SHIP A HIGHER PERCENTAGE
OF FINISHED GOODS WHICH TYPICALLY CARRY HIGHER PROFIT MARGINS

THE RESULTS PLEASED WALL STREET WHICH HAD EXPECTED EARNINGS OF ABOUT 35
CENTS A SHARE BEFORE SPECIAL ITEMS ALCOA ROSE 125 TO 7150 IN NEW YORK
STOCK EXCHANGE COMPOSITE TRADING FRIDAY

BUT THOMAS M VAN LEEUWEN METALS ANALYST WITH FIRST BOSTON CAUTIONED THAT
THE PERFORMANCE DOESN'T SUGGEST A NASCENT RECOVERY IN THE ALUMINUM BUSINESS
I WOULD NOT EXTRAPOLATE ALCOA'S EARNINGS ACROSS WHAT MAY HAPPEN FOR THE
REST OF THE INDUSTRY HE SAID THIS SAYS ALCOA HAS MANAGED ITS OPERATIONS
VERY WELL IN THE FACE OF VERY ADVERSE INDUSTRY CONDITIONS

ALUMINUM INVENTORIES ALREADY BLOATED CONTINUED TO RISE DESPITE ALCOA'S
DECISION TWO WEEKS AGO TO IDLE A QUARTER OF ITS US CAPACITY THAT HAS KEPT
PRICES DEPRESSED AND MADE THE POSSIBILITY OF A RECOVERY THIS YEAR REMOTE
WITHOUT FURTHER INDUSTRY CUTBACKS ALCOA'S SECONDQUARTER EARNINGS DIDN'T
INCLUDE A CHARGE FOR THE SMELTER CUTBACKS

MR VAN LEEUWEN WHO HAD FORECAST A PROFIT OF 50 CENTS A SHARE BEFORE
SPECIAL ITEMS SAID THE MARKET HADN'T PAID ENOUGH ATTENTION TO SEASONAL
FACTORS THE SECOND QUARTER IS TYPICALLY THE STRONGEST BECAUSE OF DEMAND
FOR ALUMINUM CAN SHEET OR ALCOA'S INTERNAL COSTCUTTING EFFORTS
9307120142 930712 TECHNOLOGY SILICON GRAPHICS LAUNCHES PC

MOUNTAIN VIEW CALIF SILICON GRAPHICS INC SAID IT WILL INTRODUCE TODAY
A PERSONAL COMPUTER WITH CERTAIN INTERACTIVE MEDIA CAPABILITIES IN ITS BID
TO PENETRATE THE MARKET FOR DESKTOP COMPUTERS

PRICES OF THE NEW COMPUTER CALLED THE INDY WILL START AT 4995 THE
MACHINE WILL HAVE A COLOR VIDEO CAMERA THAT CAN BE MOUNTED ON TOP OF THE
MONITOR 3D GRAPHICS AND PROFESSIONALQUALITY AUDIO CAPABILITIES THE
COMPANY SAID SILICON GRAPHICS IS A MAKER OF VISUAL COMPUTING SYSTEMS
9307120141 930712 TECHNOLOGY & HEALTH BAYER'S MILES UNIT TO CHALLENGE
PFIZER ON HEARTDRUG PRICE

WEST HAVEN CONN MILES INC PLANS TO GO AFTER PFIZER INC'S
BILLIONDOLLAR MARKET FOR THE HEART DRUG PROCARDIA XL BY EMPHASIZING THAT
ITS NEW COMPETING DRUG ADALAT CC IS MUCH CHEAPER

THE MOVE IS ANOTHER SIGN THAT INTENSIFYING COMPETITION AMONG HEART DRUGS IS
FORCING PRICES DOWN AND DEPARTS FROM HISTORICAL MARKETING STRATEGIES THAT
FOCUSED ON A DRUG'S THERAPEUTIC ADVANTAGES ADALAT CC WHICH WILL BE
FORMALLY LAUNCHED IN AUGUST IS CURRENTLY SELLING TO WHOLESALERS FOR 84
CENTS A DAY 26 LESS THAN PROCARDIA XL'S 114

GERALD ROSENBERG MILES SENIOR VICE PRESIDENT FOR PHARMACEUTICAL SALES AND
MARKETING SAID THAT IN ADDITION TO THE TRADITIONAL MARKETING EFFORTS THE
COMPANY WILL BE EMPHASIZING ADALAT CC'S LOWER PRICE TO HEALTH MAINTENANCE
ORGANIZATIONS AND OTHER INSTITUTIONAL BUYERS WITH THE AIM OF BUMPING
PROCARDIA XL FROM FORMULARIES THE LIST OF DRUGS REIMBURSED BY HEALTH PLANS

PROCARDIA XL AND ADALAT CC CONTAIN THE SAME ACTIVE INGREDIENT NIFEDIPINE
BUT HAVE DIFFERENT DELIVERY SYSTEMS PROCARDIA XL WHICH HAD 11 BILLION IN
US SALES LAST YEAR IS APPROVED AS A TREATMENT FOR HYPERTENSION AND
ANGINA WHILE ADALAT CC WAS APPROVED IN APRIL ONLY FOR HYPERTENSION BUT
HYPERTENSION REPRESENTS ABOUT 80 OF THE NIFEDIPINE MARKET ACCORDING TO MR
ROSENBERG

PFIZER DECLINED TO COMMENT ON THE MILES PRICING STRATEGY 9307120140
930712 WHO'S NEWS O&Y US UNIT BOARD PROPOSAL IS BACKED BY JUDGE 
 BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK A US BANKRUPTCY COURT JUDGE APPROVED IN PRINCIPLE A NEW BOARD
FOR THE US SUBSIDIARY OF OLYMPIA & YORK DEVELOPMENTS LTD BUT THE BOARD
CAN'T BE SEATED UNTIL A DISPUTE IS RESOLVED WITH TORONTO'S REICHMANN FAMILY
THE FORMER CONTROLLING SHAREHOLDERS OF THE CANADIAN PARENT COMPANY

LILLIAN E KRAEMER OF NEW YORK LAW FIRM SIMPSON THACHER & BARTLETT WHICH
REPRESENTS THE COURTAPPOINTED EXAMINER TO THE US SUBSIDIARY SAID THE
JUDGE TOLD A COURT HEARING THAT HE PLANS TO SIGN AN ORDER THIS WEEK
APPROVING A COMPROMISE AGREEMENT THAT NAMES A BOARD OF MOSTLY INDEPENDENT
DIRECTORS AND SETS GUIDELINES FOR CORPORATE GOVERNANCE FOR THE US
SUBSIDIARY OLYMPIA & YORK COS USA THE COMPROMISE WAS WORKED OUT
AFTER MONTHS OF NEGOTIATIONS BETWEEN O&Y USA'S CREDITORS AND THE
CANADIAN ADMINISTRATOR FOR O&Y DEVELOPMENTS WHICH OWNS 80 OF THE US REAL
ESTATE CONCERN

THE OTHER 20 OF THE US ASSETS IS OWNED BY COMPANIES CLOSELY HELD BY THE
REICHMANN FAMILY WHICH RELINQUISHED CONTROL OF O&Y DEVELOPMENTS AFTER IT
EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION IN MARCH I BERL NADLER
WITH THE TORONTO LAW FIRM DAVIES WARD & BECK WHICH REPRESENTS THE
REICHMANN FAMILY SAID THE FAMILY SUPPORTS THE MANAGEMENT OF O&Y USA
AND THE MOVE TO APPOINT AN INDEPENDENT BOARD HOWEVER MR NADLER SAID THE
REICHMANNS ARE CONCERNED THAT THEIR HOLDING IN THE US BUSINESS COULD BE
REDUCED WITHOUT THE FAMILY'S CONSENT AS PART OF AN EVENTUAL RESTRUCTURING OF
O&Y USA'S 53 BILLION IN DEBT HE SAID NEGOTIATIONS WILL CONTINUE IN
ORDER TO RESOLVE THE DISPUTE

O&Y USA'S CORPORATE GOVERNANCE STRUCTURE ALSO MUST BE APPROVED BY THE
CANADIAN BANKRUPTCY COURT WHICH SET A HEARING FOR JULY 26 TO HEAR THE
MATTER

SEPARATELY O&Y USA NEW YORK CITY'S LARGEST COMMERCIAL LANDLORD SAID
IT RENEWED AN AGREEMENT WITH THE CITY TO DEFER PAYMENT OF SOME OF THE
COMPANY'S PROPERTY TAXES UNDER THE AGREEMENT WHICH EASES THE STRAIN ON THE
COMPANY'S CASH FLOW O&Y USA WILL PAY SOME OF ITS TAXES OVER THE NEXT
YEAR ON A MONTHLY INSTALLMENT SCHEDULE INSTEAD OF MAKING SEMIANNUAL
PAYMENTS A SIMILAR ARRANGEMENT PUT IN PLACE LAST YEAR EXPIRED LAST MONTH
9307120139 930712 CORPORATE FOCUS HARSCO SEEKS TO SHIELD ITSELF AS
DEFENSE SPENDING FALLS  STEELMILL SERVICES ACQUISITION STRENGTHENS
SHIFT TO INDUSTRIAL BUSINESSES  BY GABRIELLA STERN STAFF REPORTER
OF THE WALL STREET JOURNAL

HARSCO CORP IS CONTINUING TO RESHAPE ITSELF IN THE FACE OF DWINDLING
DEFENSE SPENDING

MOVING FURTHER TO EMPHASIZE INDUSTRIAL PRODUCTS AND SERVICES AS ITS MAIN
LINES OF BUSINESS AND VAULTING TO THE TOP OF THE STEELMILL SERVICES
INDUSTRY HARSCO AGREED ON FRIDAY TO ACQUIRE LONDONBASED MULTISERV
INTERNATIONAL NV FOR 380 MILLION MULTISERV IS HE WORLD'S BIGGEST PROVIDER
OF STEELMILL SERVICES WHICH INCLUDE METAL RECOVERY SLAG PROCESSING AND
EQUIPMENT RENTAL TRAILED BY HARSCO'S HECKETT STEELSERVICES UNIT AND NO
3 ENVIROSOURCE INC OF STAMFORD CONN MULTISERV WAS SPUN OFF FROM
ENVIROSOURCE IN THE LATE 1980S

THE ACQUISITION WILL MORE THAN DOUBLE THE NUMBER OF COUNTRIES IN WHICH
HECKETT DOES BUSINESS CLOSELY HELD MULTISERV WITH ANNUAL REVENUE OF 350
MILLION PROVIDES SERVICES FOR STEEL MILLS IN 21 COUNTRIES OUTSIDE NORTH
AMERICA HECKETT HAS OPERATIONS IN 11 COUNTRIES TOGETHER THEY WILL DO
BUSINESS IN 28 COUNTRIES

OUR REAL GROWTH IS INTERNATIONAL THAT'S WHERE THE NEW WORK IS SAID
HARSCO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MALCOLM W GAMBILL HARSCO
BASED IN CAMP HILL PA HAD 1992 NET INCOME OF 843 MILLION OR 325 A
SHARE AFTER A ONETIME ACCOUNTING CHARGE SALES WERE 162 BILLION

ANALYSTS SAID THE ACQUISITION PUTS HARSCO IN A STRONG POSITION TO BENEFIT
FROM STEELINDUSTRY GROWTH IN SUCH DEVELOPING REGIONS AS EASTERN EUROPE
RUSSIA AND CHINA THEY'RE UPPING THEIR INTERNATIONAL EXPOSURE GREATLY
SAID JOHN PATRICK AN ANALYST WITH HERZOG HEINE GEDULD INC WHO RATES THE
STOCK A BUY

THE MULTISERV ACQUISITION IS THE SECOND MAJOR TRANSACTION HARSCO HAS
ANNOUNCED IN THE PAST SEVEN MONTHS LIKE THE FIRST ONE A TENTATIVE
AGREEMENT WITH FMC CORP TO COMBINE MUCH OF THE TWO COMPANIES' DEFENSE
OPERATIONS IN A JOINT VENTURE THE LATEST DEAL WAS MOTIVATED AT LEAST IN
PART BY THE OUTLOOK FOR SHRINKING DEFENSE SPENDING ALONG WITH GENERAL
DYNAMICS CORP HARSCO AND FMC ARE THE MAJOR US MANUFACTURERS OF COMBAT
VEHICLES SUCH AS ARMORED AMMUNITIONSUPPLY VEHICLES THAT HAVE TRACKS BUT
AREN'T BATTLE TANKS

IN A THIRD SMALL TRANSACTION MEANT TO CONVERT PART OF ITS MILITARYVEHICLE
MANUFACTURING TO CIVILIAN USE HARSCO PAID ABOUT 2 MILLION IN FEBRUARY FOR
THE ASSETS OF CLOSELY HELD WAYNE CORP A MAKER OF SCHOOL BUSES IN RICHMOND
IND THE RICHMOND PLANT WAS CLOSED AND PRODUCTION WAS SHIFTED TO HARSCO'S
MARYSVILLE OHIO MILITARYTRUCK PLANT BUS SHIPMENTS WILL BEGIN SOON

ASSUMING THE FMC AND MULTISERV TRANSACTIONS ARE COMPLETED HARSCO WILL BE
SUBSTANTIALLY LESS DEPENDENT ON DEFENSERELATED PRODUCTS FOR SALES LARGELY
BECAUSE SALES BY THE JOINT VENTURE WITH FMC WON'T BE INCLUDED IN HARSCO'S
TOTAL SALES THE JOINT VENTURE WILL CONTRIBUTE TO HARSCO PROFITS HOWEVER
IN 1992 HARSCO'S DEFENSE UNIT REPRESENTED ABOUT 48 OF ANNUAL SALES WITH
ENGINEERED PRODUCTS ACCOUNTING FOR 34 AND INDUSTRIAL SERVICES FOR 18 WITH
THE MULTISERV AND FMC TRANSACTIONS INDUSTRIAL SERVICES WILL REPRESENT 50
OF HARSCO'S SALES ENGINEERING 47 AND DEFENSE A MERE 3 HARSCO'S MR
GAMBILL SAID

HARSCO EXPECTS 1994 SALES OF 13 BILLION REFLECTING THE ADDITION OF
MULTISERV SALES MINUS SOME DEFENSE SALES TO THE FMC JOINT VENTURE AND THE
EXPIRATION OF A MILITARYTRUCK CONTRACT THAT ACCOUNTED FOR ROUGHLY 375
MILLION IN SALES IN 1992 THE COMPANY DID NOT PROVIDE A SALES FORECAST FOR
1993

REGARDING THE MULTISERV PURCHASE MR GAMBILL NOTED THAT STOCKHOLDERS MIGHT
QUESTION THE COMPANY'S LARGE INVESTMENT IN THE SLUGGISH STEEL SECTOR BUT HE
SAID THE INDUSTRY HAS HIT BOTTOM AND HAS NOWHERE TO GO BUT UP

MOREOVER MR GAMBILL SAID HE THINKS THAT A GROWING NUMBER OF STEEL MILLS
PARTICULARLY IN PARTS OF THE WORLD WITH UNDERDEVELOPED INDUSTRIES WILL SIGN
CONTRACTS WITH COMPANIES SUCH AS HARSCO TO PROVIDE ONSITE SERVICES RUSSIA
AND CHINA ARE WHERE US STEEL MILLS WERE 40 YEARS AGO HE SAID HARSCO
RECENTLY SIGNED NEW CONTRACTS OR RENEWED EXISTING ONES WITH MILLS IN SAUDI
ARABIA GERMANY AND MEXICO

IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE HARSCO COMMON STOCK
CLOSED FRIDAY AT 3875 UP 375 CENTS ENGINEERING EXPANSION HARSCO ALSO
SEES GROWTH IN ITS ENGINEERING UNIT WHICH MAKES RIGHTOFWAY EQUIPMENT FOR
RAILROADS AMONG OTHER PRODUCTS LAST YEAR HARSCO ACQUIRED CANRON INC'S
TAMPER RAILMAINTENANCE BUSINESS FOR 33 MILLION CANRON OF TORONTO IS A
UNIT OF IVASCO INC MONTREAL

HARSCO HAS RECOVERED FROM A DIFFICULT PERIOD IN THE 1980S WHEN THE COMPANY
WON TWO MILITARYVEHICLE CONTRACTS DISCOVERED IT HAD VASTLY UNDERBID ON
THEM AND WAS FORCED TO TAKE HUGE WRITEOFFS IN THE PAST FEW YEARS CUTS IN
MILITARY SPENDING HAVE FORCED THE COMPANY TO CUT DEFENSERELATED EMPLOYMENT
NEARLY IN HALF HARSCO EMPLOYS A TOTAL OF 10000 PEOPLE WORLDWIDE

HARSCO WILL FINANCE AS MUCH AS 25 OF THE MULTISERV TRANSACTION WITH CASH
AND MOST OF THE REST FROM BORROWINGS THE ACQUISITION IS EXPECTED TO CLOSE
IN THE 1993 THIRD QUARTER

MULTISERV IS LARGELY OWNED BY NEW YORKBASED INVESTORS DYSON KISSNER
MORAN AND ITS AFFILIATES ACCORDING TO HARSCO MULTISERV PRESIDENT AND CEO
ADRIAN HH BOWDEN 54 YEARS OLD WILL HEAD COMBINED HECKETTMULTISERV
OPERATIONS WHICH WILL HAVE ABOUT 550 MILLION IN SALES AND EMPLOY ABOUT
8000 ADRIAN WILL REPORT DIRECTLY TO ME SAID MR GAMBILL 63

HARSCO SAID THE TRANSACTION MAY CAUSE A MINIMAL DECREASE IN PERSHARE
EARNINGS IN 1993 BE NEUTRAL IN 1994 AND ADD TO EARNINGS IN 1995 HARSCO'S
DEBT RATIO WILL INCREASE TO 44 OF CAPITALIZATION IMMEDIATELY AFTER THE
TRANSACTION BUT THE COMPANY EXPECTS TO RETURN TO THE CURRENT 22 LEVEL
WITHIN FIVE YEARS WHILE MAINTAINING OR INCREASING THE DIVIDEND

IN THE WAKE OF FRIDAY'S ANNOUNCEMENT MOODY'S INVESTORS SERVICE PUT HARSCO'S
DEBT RATINGS UNDER REVIEW FOR A POSSIBLE DOWNGRADE SAYING IT WILL STUDY
HARSCO'S CAPITAL STRUCTURE AND ABILITY TO GENERATE ENOUGH CASH FLOW FOR
SIGNIFICANT DEBT REDUCTION

MR GAMBILL WHO DESCRIBED A MOODY'S DOWNGRADE AS JUST A POSSIBILITY SAID
THE TRANSACTION IS A MAJOR STRATEGIC MOVE AND NOTED THAT THE OPPORTUNITY
TO ACQUIRE MULTISERV WAS ON MY WISH LIST FOR A LONG TIME

SPECIALIZED STEELMILL SERVICES GAS CONTROL AND CONTAINMENT PRODUCTS
CONSTRUCTION AND INDUSTRIAL MAINTENANCERELATED EQUIPMENT RAILWAY
MAINTENANCE EQUIPMENT AND DEFENSE PRODUCTS

FMC CORP IN DEFENSE ENVIROSOURCE INC IN STEELMILL SERVICES PLASSER &
THEURER CO IN RAILWAY MAINTENANCE EQUIPMENT 9307120138 930712 AIRTRAN
SAYS JUNE TRAFFIC ROSE

MINNEAPOLIS AIRTRAN CORP SAID JUNE TRAFFIC AT ITS MESABA AVIATION UNIT
ROSE 85 TO 258 MILLION REVENUE PASSENGER MILES FROM 238 MILLION A YEAR
EARLIER

A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE

THE REGIONAL CARRIER SAID THAT ITS LOAD FACTOR OR PERCENTAGE OF SEATS
FILLED TUMBLED 15 PERCENTAGE POINTS TO 467 THE DECLINE REFLECTS THE
ADDITION OVER THE PAST YEAR OF 15 ADDITIONAL 37SEAT AIRCRAFT AIRTRAN SAID
CAPACITY AS MEASURED IN AVAILABLE SEAT MILES ROSE 434

MESABA WHICH SERVES 48 CITIES OPERATES AS NORTHWEST AIRLINK UNDER A
MARKETING AGREEMENT WITH NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC
9307120137 930712 SWISSAIR SEES ALLIANCE WITH 3 OTHER AIRLINES FORMING
IN SEPTEMBER  SPECIAL TO THE WALL STREET JOURNAL

ZURICH SWISSAIR PRESIDENT OTTO LOEPFE SAID FRIDAY HE EXPECTS TO SIGN A
MEMORANDUM OF UNDERSTANDING ON A PROPOSED ALLIANCE WITH THREE OTHER AIRLINES
IN SEPTEMBER

SWISSAIR SCANDINAVIAN AIRLINE SYSTEM KLM ROYAL DUTCH AIRLINES AND AUSTRIAN
AIRLINES HAVE PREVIOUSLY DISCLOSED THAT THEY ARE IN NEGOTIATIONS OVER THE
CREATION OF A EUROPEAN AIRLINE ALLIANCE IN A PROJECT CALLED ALCAZAR

MR LOEPFE IN A SPEECH TO SWISSAIR MANAGERS SAID THAT THE SWISS AIRLINE IS
IN A STRONG NEGOTIATING POSITION LARGELY BECAUSE OF ITS ADVANCED AIRCRAFT
COUPLED WITH MEASURES TO IMPROVE EARNINGS

ALTHOUGH VARIOUS ALTERNATIVES TO THE PROPOSED COLLABORATION HAD BEEN
CONSIDERED THE ALCAZAR PROJECT HAD CLEARLY SHOWN THE BIGGEST SIGNS OF
SUCCESS MR LOEPFE ARGUED

HOWEVER AN ALLIANCE WOULD LEAD TO THE REDUCTION OF ABOUT 10 OF EXISTING
JOBS AT ALL FOUR AIRLINES IN EQUAL PROPORTIONS DURING THE FIRST THREE
YEARS MR LOEPFE SAID ACCORDING TO A SPOKESMAN THE FOUR AIRLINES
ALTOGETHER EMPLOY AROUND 70000 PEOPLE

MR LOEPFE SAID SWISSAIR PLANS TO CUT THE JOBS THROUGH NATURAL ATTRITION AS
WELL AS LAYOFFS BUT ADDED THE ALLIANCE IS EXPECTED TO CREATE NEW POSITIONS
IN SOME SECTORS

ON OTHER MATTERS MR LOEPFE SAID SWISSAIR WAS ABLE TO SELL SIX AIRLINES OF
THE TYPE MD81 AT VERY GOOD CONDITIONS DESPITE THE CURRENT DIFFICULT
MARKET ENVIRONMENT HE DIDN'T ELABORATE 9307120136 930712 MERCK'S MARKHAM
RESIGNS AS PRESIDENT DURING TIME OF CHANGE FOR DRUG FIRMS  BY
ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL

WHITEHOUSE STATION NJ THE UNEXPECTED RESIGNATION OF MERCK & CO'S
PRESIDENT AND CHIEF OPERATING OFFICER RICHARD J MARKHAM ADDS UNCERTAINTY
TO A COMPANY ALREADY STRUGGLING TO ADJUST TO TUMULTUOUS CHANGES IN THE
PHARMACEUTICAL INDUSTRY

MERCK SAID LATE FRIDAY THAT MR MARKHAM RESIGNED FOR PERSONAL REASONS
EFFECTIVE IMMEDIATELY ALSO LEAVING THE BOARD FOLLOWING HIS APPOINTMENT AS
MERCK'S PRESIDENT IN DECEMBER AFTER 19 YEARS AT THE COMPANY MR MARKHAM 42
YEARS OLD WAS VIEWED AS THE HEIR APPARENT TO P ROY VAGELOS CHAIRMAN AND
CHIEF EXECUTIVE OFFICER WHO IS SCHEDULED TO RETIRE IN NOVEMBER 1994 TWO
COMMITTEES OF THE BOARD MET FRIDAY AND DECIDED THAT A SUCCESSOR TO MR
MARKHAM WOULDN'T BE NAMED IN THE IMMEDIATE FUTURE WHILE REAFFIRMING DR
VAGELOS'S RETIREMENT DATE A SPOKESMAN SAID

NEITHER MR MARKHAM NOR DR VAGELOS WOULD COMMENT BEYOND THE COMPANY'S
THREESENTENCE STATEMENT A MERCK SPOKESMAN SAID WHILE MR MARKHAM'S
DEPARTURE IS DISAPPOINTING ONE OF MERCK'S STRENGTHS IS THE QUALITY AND
DEPTH OF ITS MANAGEMENT TEAM DR VAGELOS SAID IN THE STATEMENT

THE SUDDEN VOID IN THE EXECUTIVE RANKS COMES AT A PARTICULARLY DIFFICULT
TIME FOR MERCK ITS STOCK HAS SUNK FROM A 52WEEK HIGH OF 53375 TO 3475
UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY ANALYSTS
HAVE RAISED CONCERNS OVER ITS ABILITY TO MAINTAIN REVENUE AND EARNINGS
GROWTH IN THE FACE OF MARKET AND POLITICAL PRESSURES ON DRUG PRICES AND
CONCERNS OVER THE DEARTH OF NEW PRODUCTS WITH BLOCKBUSTER POTENTIAL IN ITS
PIPELINE MR MARKHAM'S EXPERTISE WAS IN MARKETING AND HE WAS AN ARCHITECT
OF MERCK'S STRATEGY FOR DEALING WITH THE INCREASINGLY POWERFUL MANAGEDCARE
MARKET WHICH INCLUDES HEALTH MAINTENANCE ORGANIZATIONS AND OTHER
INSTITUTIONAL BUYERS OF HEALTHCARE SERVICES AND PRODUCTS

MR MARKHAM'S VAGUE REASONS FOR LEAVING THE ABSENCE OF ANY OF THE USUAL
LAUDATORY STATEMENTS ABOUT HIM IN THE NEWS RELEASE AND THE IMMEDIACY OF HIS
DEPARTURE PROVOKED SPECULATION THAT SOME SORT OF CONFLICT WITHIN THE COMPANY
OVER HIS POLICIES HAD PROMPTED HIS RESIGNATION

BUT A MERCK SPOKESMAN DENIED ANY SUCH CONFLICT AND AN INTERNAL MEMO GOING
OUT TO EMPLOYEES THIS MORNING INCLUDES A STATEMENT FROM DR VAGELOS
CREDITING MR MARKHAM'S TREMENDOUS CONTRIBUTION TO MERCK

NEVERTHELESS THE SUDDENNESS OF HIS RESIGNATION RAISES MORE QUESTIONS THAN
ANSWERS SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER

ANALYSTS WERE QUICK TO COMPARE MR MARKHAM'S RESIGNATION WITH THE OUSTER OF
ELI LILLY & CO'S CHIEF EXECUTIVE OFFICER VAUGHN D BRYSON LAST MONTH OVER
MANAGEMENT DIFFERENCES LIKE MR BRYSON MR MARKHAM WAS IN HIS JOB A SHORT
TIME BUT WAS MOVING AGGRESSIVELY TO ENACT CHANGES IN THE COMPANY ANALYSTS
SAID

A PERSON CLOSE TO MERCK SAID MR MARKHAM'S AGGRESSIVE STYLE IN STRENGTHENING
THE COMPANY'S POSITION IN THE MANAGEDCARE MARKET RUFFLED SENIOR MANAGERS'
FEATHERS OF PARTICULAR CONCERN WAS HIS INTEREST IN BUYING A LARGE
HEALTHCARE MANAGEMENT COMPANY RUMORED TO BE MEDCO CONTAINMENT SERVICES
INC THE PERSON SAID THE MERCK SPOKESMAN DECLINED TO COMMENT MEDCO
CONTAINMENT'S CHIEF FINANCIAL OFFICER JAMES V MANNING ALSO DECLINED TO
COMMENT

BUT THE MARKETING CHANGES AT MERCK ARE BEING VIEWED POSITIVELY BY
MANAGEDCARE OFFICIALS MERCK HAS CHANGED OVER THE PAST YEAR IN DOING
BUSINESS WITH MANAGED CARE SAID HENRY F BLISSENBACH PRESIDENT OF
DIVERSIFIED PHARMACEUTICAL SERVICES INC WHICH RUNS PRESCRIPTION DRUG
PROGRAMS FOR HEALTH PLANS MERCK ALONG WITH ELI LILLY WAS ONE OF THE LAST
HOLDOUTS IN GIVING DISCOUNTS HE SAID

MR MARKHAM'S APPOINTMENT AS PRESIDENT LATE LAST YEAR SURPRISED MANY IN
PART BECAUSE OF HIS YOUTH HE HAD LEAPFROGGED OVER MORE SENIOR MANAGERS TO
THE POSITION AND IN A COMPANY SO STEEPED IN SCIENCE APPOINTING A PRESIDENT
FROM THE MARKETING SIDE OF THE BUSINESS BROKE WITH TRADITION

BUT ANALYSTS SOON CONCLUDED MR MARKHAM WAS THE APPROPRIATE CHOICE TO LEAD
THE COMPANY THROUGH THE CHANGES ALREADY ROILING PHARMACEUTICAL MARKETS
BECAUSE OF THE GROWTH OF THE MANAGEDCARE MARKET AND ITS ABILITY TO EXTRACT
DISCOUNTS FROM PHARMACEUTICAL MAKERS AS WELL AS THE TURMOIL THREATENED BY
PRESIDENT CLINTON'S HEALTHCARE REFORM

ALTHOUGH MR MARKHAM WAS WIDELY PERCEIVED TO BE DR VAGELOS'S SUCCESSOR
OTHER MERCK EXECUTIVES WERE STILL SAID TO BE CONTENDERS SAID JOHN TW
HAWKINS MANAGING DIRECTOR OF EXECUTIVE RECRUITING FIRM RUSSELL REYNOLDS
ASSOCIATES INC HE SAYS HE HAD HEARD SPECULATION IN INDUSTRY CIRCLES IN
RECENT MONTHS THAT EDWARD M SCOLNICK MERCK'S HEAD OF RESEARCH COULD TAKE
OVER AS CHAIRMAN

ANALYSTS EXPECT AN INSIDER WILL BE CHOSEN AS DR VAGELOS'S SUCCESSOR WITH
MR MARKHAM'S DEPARTURE ANALYSTS SAY THE LEADING CONTENDERS ARE DR
SCOLNICK JOHN L ZABRISKIE HEAD OF MERCK'S MANUFACTURING DIVISION FRANCIS
H SPIEGEL JR EXECUTIVE VICE PRESIDENT AND JERRY T JACKSON HEAD OF
MERCK'S HUMAN HEALTH DIVISION THERE'S ALSO BEEN SPECULATION IN RECENT
MONTHS THAT AN OUTSIDER PERHAPS A BOARD MEMBER MIGHT STEP IN TO THE
CHAIRMANSHIP MR HAWKINS SAID

ANALYSTS DOUBTED MR MARKHAM'S RESIGNATION WAS RELATED TO SECONDQUARTER
EARNINGS EXPECTED TO BE RELEASED NEXT WEEK A MERCK SPOKESMAN SAID IF WE
HAD SOMETHING MATERIAL THAT WOULD AFFECT OUR EARNINGS OR STOCK WE WOULD
ANNOUNCE IT  AND WE WILL NOT BE DOING THAT A CONFERENCE CALL WITH
ANALYSTS IS SCHEDULED FOR THIS MORNING BUT THE SPOKESMAN SAID THE COMPANY
PLANNED ONLY TO REAFFIRM TO THE INVESTMENT COMMUNITY THAT ITS STRATEGIC PLAN
IS STILL IN PLACE NOTHING MORE WOULD BE REVEALED ABOUT MR MARKHAM'S
DEPARTURE HE SAID

MR NORDMANN SAID HE DIDN'T EXPECT MERCK'S STOCK PRICE WOULD REACT STRONGLY
TO MR MARKHAM'S DEPARTURE BECAUSE THE COMPANY HAS A DEEP RESERVOIR OF
MANAGEMENT TALENT MOREOVER HE SAID DR VAGELOS IS A VERY STRONG LEADER
AND HE REMAINS IN HIS POST AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER

BY ALL ACCOUNTS MR MARKHAM'S RESIGNATION WAS VOLUNTARY MR NORDMANN SAID
AND IF HIS REASONS WERE TRULY PERSONAL MR MARKHAM DESERVES HIS PRIVACY
9307120135 930712 ENTERTAINMENT TV PROGRAMS CHANGE PICTURE IN VIDEO
MARKET  BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET
JOURNAL

IF THERE EVER WAS ANY DOUBT THAT MOST PEOPLE STILL HAVEN'T FIGURED OUT HOW
TO PROGRAM THEIR VCRS HERE'S PROOF ONE OF THE FASTESTGROWING PARTS OF THE
HOME VIDEO MARKET IS VIDEOCASSETTES OF TV SHOWS EVEN ONES THAT RAN JUST
WEEKS EARLIER

WITH RERUNS OF CHEERS STAR TREK AND I LOVE LUCY ON THE TUBE AT ALL
HOURS THERE WOULD SEEM TO BE LITTLE MARKET FOR VIDEOTAPES OF THOSE OR ANY
OTHER TV SHOWS YET DRIVE BY THE LOCAL BLOCKBUSTER STORE THESE DAYS AND
YOU'RE AS LIKELY TO FIND A PLUG ON THE MARQUEE FOR THE RECENTLY AIRED
BEVERLY HILLS 90210 GRADUATION EPISODE AS FOR BRAM STOKER'S DRACULA

PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT VIDEO HAS MADE A MINT ON CASSETTES
OF THE ORIGINAL STAR TREK SERIES SELLING 50000 TO 100000 COPIES OF EACH
OF THE 79 EPISODES IT HAS ALSO SOLD 25000 TO 30000 COPIES APIECE OF THE
NEWER STAR TREK THE NEXT GENERATION SHOWS TAPES OF JACKIE GLEASON'S THE
HONEYMOONERS FROM CBS INC'S CBS VIDEO UNIT HAVE BEEN ON THE BESTSELLER
LIST SINCE THEIR RELEASE TWO MONTHS AGO WITH MORE THAN A HALFMILLION SOLD
AND SARAH PLAIN AND TALL A HALLMARK HALL OF FAME MOVIE STARRING GLENN
CLOSE THAT WAS BROADCAST LAST YEAR HAS BEEN A SLEEPER FOR REPUBLIC PICTURES
CORP'S HOME ENTERTAINMENT GROUP THE COMPANY FIGURED IT WOULD SELL NO MORE
THAN 100000 COPIES BUT HAS ALREADY SOLD 300000 AND NOW EXPECTS TO MOVE
FIVE TIMES ITS ORIGINAL TARGET

FOR YEARS CONVENTIONAL INDUSTRY WISDOM HELD THAT NO ONE WOULD BUY OR RENT A
VIDEO OF SOMETHING THEY COULD TAPE OFF TV BUT TAPES OF TELEVISION SHOWS A
NONEXISTENT SEGMENT OF THE VIDEO MARKET FIVE YEARS AGO ACCOUNTED FOR 10 OF
THE 375 MILLION UNITS SOLD LAST YEAR ACCORDING TO DICK KELLY OF CAMBRIDGE
ASSOCIATES A STAMFORD CONN CONSULTING FIRM TO THE VIDEO AND TELEVISION
INDUSTRY

VIDEO COMPANIES HAVE DISCOVERED THAT VIEWERS WILL GLADLY PAY A PREMIUM TO
AVOID THE HASSLES OF TAPING AND TO HAVE THE COMMERCIALS EDITED OUT I LIKE
THE FACT THAT THEY PUT THEM OUT UNCUT AND YOU'RE NOT AT THE MERCY OF
COMMERCIAL TELEVISION SAYS PAT MCFADDEN A LOS ANGELES ASSISTANT FILM
EDITOR WHO HAS A COLLECTION OF PEANUTS STAR TREK AND CHRISTMAS TV
VIDEOS ESPECIALLY WITH THE CLASSIC TV SHOWS THEY WERE MADE IN A TIME WHEN
THERE WAS LESS SPONSOR TIME ON THE AIR AND THESE DAYS THEY HAVE TO CUT THEM
TO MAKE ROOM FOR MORE COMMERCIALS IT'S BETTER TO BUY THEM ON VIDEO

ONE NEED ONLY PERUSE THE ASSORTMENT OF TV SHOWS BEING HAWKED AT THIS WEEK'S
VIDEO SOFTWARE DEALERS ASSOCIATION CONVENTION IN LAS VEGAS TO SEE HOW THE
MARKET IS EXPANDING EPISODES OF NORTHERN EXPOSURE AND QUANTUM LEAP AT
1498 A POP ALL THE WEDDING SCENES FROM ABC'S SOAP OPERAS ALL MY
CHILDREN ONE LIFE TO LIVE AND GENERAL HOSPITAL FOR 1498 PER SERIES
THE I LOVE LUCY CALIFORNIA EPISODES BUNDLED INTO A TWOPART COLLECTORS
EDITION FOR 4998 EACH

WHY THE SUDDEN FLOOD OF TV PRODUCT A LOT OF THE MOVIE LIBRARIES HAVE BEEN
DEPLETED SO DISTRIBUTORS ARE LOOKING FOR NEW PROGRAMMING SAYS KEN ROSS
VICE PRESIDENT AND GENERAL MANAGER OF CBS VIDEO

DISTRIBUTORS LOOK FOR REPEATABILITY WHEN DECIDING WHETHER TO PRICE A VIDEO
FOR THE SELLTHROUGH MARKET FOR CONSUMERS TO BUY RATHER THAN RENT AND IF
THERE'S ANYTHING THAT SUCCESSFUL SYNDICATED TELEVISION HAS IT'S
REPEATABILITY I LOVE LUCY' AND THE HONEYMOONERS' HAVE BEEN ON FOR OVER
30 YEARS AND PEOPLE WATCH THEM OVER AND OVER AND OVER AGAIN THEY'RE THE
MOST REPEATABLE OF ANY ENTERTAINMENT PRODUCT MR ROSS SAYS

BUT SYNDICATION ISN'T A GUARANTEE OF SUCCESS IN HOME VIDEO BONANZA WAS A
BUST IN ITS HOME VIDEO RELEASE SOMETHING REPUBLIC'S HOME ENTERTAINMENT
PRESIDENT STEVE BEEKS IS STILL TRYING TO FIGURE OUT YOU'D HAVE THOUGHT IT
HAD ALL THE RIGHT CHARACTERISTICS HE SAYS

WHEN A TV SHOW REACHES CULT STATUS THE VIDEOS CEASE TO BE MERE
ENTERTAINMENT AND BECOME COLLECTIBLES TO ENCOURAGE SUCH PURCHASES
DISTRIBUTORS ADD FOOTAGE OR OLD PROMOTIONAL REELS FOR ONE TWILIGHT ZONE
VIDEO CBS ADDED A PITCH THAT SERIES CREATOR ROD SERLING MADE TO WOO SANKA
COFFEE AS A SPONSOR FOR THE SHOW AND WHEN PARAMOUNT PUT A NEVERAIRED STAR
TREK PILOT CALLED THE CAGE ON VIDEO IT SOLD 200000 UNITS BRINGING IN
3 MILLION

ABC IS PLAYING UP COLLECTIBILITY WITH THE SOAPOPERA WEDDING TAPES CALLING
THEM COLLECTIBLE VIDEO MEMORY BOOKS JON PEISINGER PRESIDENT OF CAPITAL
CITIES/ABC INC'S VIDEO PUBLISHING UNIT SAYS THOSE TAPES DUE OUT IN
SEPTEMBER WILL JUST WHET HUGE PENTUP DEMAND FOR HIGHLIGHTS FROM OLD SOAPS
THOUGH MANY FANS ALREADY TAPE THEIR FAVORITE SHOWS SO THEY DON'T MISS A
SINGLE TRYST OR TRAUMA THEY USUALLY DON'T SAVE THE EPISODES FOR LONG CBS
VIDEO'S MR ROSS SAYS HIS NETWORK IS ALSO CONSIDERING PUTTING SOAPS ON
VIDEO

AS WITH FEATURE FILMS CHILDREN'S TV WHICH HAS HIGH REPEATIBILITY HAS BEEN
THE MOST CONSISTENTLY SUCCESSFUL IN THE SELLTHROUGH MARKET VIDEOS OF PUBLIC
BROADCASTING SERVICE'S BARNEY & FRIENDS AND WALT DISNEY CO'S DINOSAURS
THE NEW ADVENTURES OF WINNIE THE POOH AND THE LITTLE MERMAID SERIES HAVE
ALL BEEN CHART TOPPERS THE HOME VIDEO DIVISION OF LIVE ENTERTAINMENT INC
SOLD ABOUT 800000 UNITS EACH OF TWOEPISODE TAPES FROM THE ANIMATED
TEENAGE MUTANT NINJA TURTLES TV SERIES DURING THE HEIGHT OF THE TURTLE
CRAZE TWO YEARS AGO

LAST MONTH REPUBLIC PICTURES SIGNED AN EIGHTYEAR LICENSING AGREEMENT WITH
CHILDREN'S TELEVISION WORKSHOP WHOSE LIBRARY OF PUBLICTELEVISION SHOWS
INCLUDES GHOSTWRITER AND THE ELECTRIC COMPANY THE AGREEMENT ALSO PUTS
REPUBLIC IN LINE TO POTENTIALLY PICK UP THE VIDEO DISTRIBUTION OF SESAME
STREET WHEN CTW'S DISTRIBUTION AGREEMENT WITH RANDOM HOUSE ENDS IN TWO
YEARS

STILL MORE TV SHOWS ARE LIKELY TO END UP ON VIDEO SO LONG AS VIEWERS KEEP
STRUGGLING WITH THEIR VCRS SOME PEOPLE JUST AREN'T GOOD AT TAPING SAYS
TED GREEN VICE PRESIDENT OF SONY CORP'S SONY MUSIC GROUP WHICH LAST WEEK
AGREED TO DISTRIBUTE ON HOME VIDEO REN & STIMPY AND OTHER SERIES FROM THE
NICKELODEON CABLE CHANNEL I MYSELF AM NOT GOOD AT GETTING THE DAMN THING
DONE 9307120134 930712 NOTABLE & QUOTABLE

GIL AND JOHN DORLAND AUTHORS OF DUTY HONOR COMPANY WEST POINT
FUNDAMENTALS FOR BUSINESS SUCCESS WRITING IN THE JULY ISSUE OF SKY
MAGAZINE

LEADERS EVEN FOURSTAR GENERALS VISIT THEIR TROOPS IN THE FIELD A
HANDSHAKE ACCOMPANIED BY A SIMPLE COMMENT GOOD JOB CAN HAVE A
DRAMATIC POSITIVE EFFECT ON THE ESPRIT DE CORPS SIMILAR MINOR
CONSIDERATIONS CAN MAKE HUGE DIFFERENCES IN SUBORDINATES' PERFORMANCES IN
CORPORATIONS AS WELL 9307120133 930712 MANNESMANN EXPECTS A CLEARLY
NEGATIVE' FIRSTHALF REPORT  SPECIAL TO THE WALL STREET JOURNAL

DUSSELDORF GERMANY ALTHOUGH FIRSTHALF SALES AT INDUSTRIAL GROUP
MANNESMANN AG WERE UNCHANGED FROM A YEAR EARLIER THE COMPANY WILL SHOW
CLEARLY NEGATIVE RESULTS CHAIRMAN WERNER H DIETER SAID AT THE ANNUAL
SHAREHOLDERS' MEETING

MR DIETER DIDN'T PROVIDE COMPLETE FIGURES FOR THE FIRST HALF SAYING ONLY
THAT MANNESMANN WOULD REPORT AN OPERATING LOSS A YEAR EARLIER MANNESMANN
POSTED A PROFIT OF 15 MILLION MARKS 88 MILLION

MR DIETER BLAMED THE DECLINE ON POOR ECONOMIC CONDITIONS THE COMPANY PLANS
TO RESPOND HE SAID BY SEEKING A MORE GLOBAL MARKET TARGETING IN
PARTICULAR THE US AND ASIA

MANNESMANN MOVED INTO THE RED FOR THE FIRST HALF DESPITE THE FACT THAT SALES
WERE UNCHANGED FROM THE YEAREARLIER AT 128 BILLION MARKS 752 BILLION
ORDERS HOWEVER DECLINED 7 TO 14 BILLION MARKS FROM 151 BILLION MARKS

FIRSTHALF MACHINEBUILDING AND FACTORYCONSTRUCTION SALES INCREASED 8 BUT
ORDERS DECLINED 7 MR DIETER DIDN'T PROVIDE SPECIFIC FIGURES

TRUCK SALES FELL 12 IN THE FIRST HALF AND ORDERS WERE DOWN 15 ELECTRONICS
SALES AND ORDERS WERE BOTH DOWN 6

AS PART OF A CONTINUING EFFORT TO CUT COSTS MR DIETER ALSO NOTED THAT
MANNESMANN HAS REDUCED ITS STAFF 5 TO 131000 EMPLOYEES AT THE END OF THE
HALF FROM 137600 A YEAR EARLIER

HE DECLINED TO FORECAST ANNUAL RESULTS BUT HE CALLED 1993 A VERY HARD
YEAR AND CHARACTERIZED THE FIRST QUARTER AS ALMOST A CATASTROPHE HE ADDED
THAT THE COMPANY'S RESTRUCTURING WILL CONTINUE

WHEN ASKED IF MANNESMANN WOULD PAY A DIVIDEND THIS YEAR MR DIETER SAID HE
COULDN'T SAY 9307120132 930712 SCHERING AND HOECHST INTEND TO COMBINE 
AGROCHEMICAL UNITS  SPECIAL TO THE WALL STREET JOURNAL

FRANKFURT GERMAN CHEMICAL GROUPS SCHERING AG AND HOECHST AG PLAN TO LINK
THEIR AGRICULTURALCHEMICAL OPERATIONS IN A JOINTVENTURE COMPANY

THE COMPANY TO BE BASED IN BERLIN WILL BE OWNED 60 BY HOECHST AND 40 BY
SCHERING IT WILL BEGIN OPERATION IN 1994 AND EXPECTS ANNUAL SALES TO
EXCEED THREE BILLION MARKS 176 BILLION HOECHST SAID IN A STATEMENT IN
A SEPARATE SIMILAR STATEMENT SCHERING SAID THE TWO COMPANIES SIGNED A
LETTER OF INTENT THURSDAY

THE AGREEMENT REQUIRES APPROVAL BY BOTH COMPANIES' SUPERVISORY BOARDS
SCHERING'S SHAREHOLDERS AND VARIOUS ANTITRUST AUTHORITIES

HOECHST SAID IN MAY IT WAS TALKING WITH SCHERING ABOUT COMBINING THE
AGROCHEMICAL UNITS AND SCHERING HAS LONG MADE NO SECRET THAT IT SOUGHT A
PARTNER ITS PLANNED AGROCHEMICAL ARRANGEMENT WITH SWITZERLAND'S SANDOZ AG
FELL APART TWO YEARS AGO

THE COMPANIES CITED THE INDUSTRY'S INCREASINGLY DIFFICULT CONDITIONS AS
MOTIVATION FOR THE JOINT VENTURE WHICH THEY HOPE TO COUNTER WITH AN
ACCELERATED SUPPLY OF PROFITABLE AND INNOVATIVE PRODUCTS THEY SAID ONLY
ENTERPRISES OF THE CORRESPONDING SIZE ARE IN A POSITION TO PROVIDE THE MEANS
FOR THE CONTINUAL RENEWAL OF THEIR PRODUCT PALETTE

HOECHST'S AGROCHEMICAL SALES FELL 8 LAST YEAR TO 269 BILLION MARKS WHILE
SCHERING'S FELL 16 TO 128 BILLION MARKS IN THIS YEAR'S FIRST QUARTER
SCHERING'S AGROCHEMICAL SALES FELL 22 FROM THE YEAREARLIER PERIOD

AGROCHEMICALS MADE UP 20 OF SCHERING'S GROUP SALES IN 1992 AND 6 OF
HOECHST'S TOTAL SALES 9307120131 930712 INTERNATIONAL SWEDISH EXPORTS
CLIMB

STOCKHOLM THE VALUE OF SWEDISH EXPORTS ROSE 88 IN THE FIRST FOUR MONTHS
OF 1993 FROM A YEAR EARLIER MAINLY BECAUSE OF A STRONG EXPORT SPURT IN
APRIL THE NATIONAL STATISTICS AGENCY SCB SAID

IN APRIL EXPORT VALUES JUMPED 18 TO 32 BILLION KRONOR 404 BILLION FROM
27 BILLION KRONOR A YEAR EARLIER SCB SAID

EXPORTS OF CHEMICAL PRODUCTS INCLUDING PHARMACEUTICALS SHOWED THE BIGGEST
INCREASE IN THE FIRST FOUR MONTHS UP 20 IN VALUE FROM THE YEAREARLIER
PERIOD 9307120130 930712 ENCLEAN EXPECTS CHARGES

HOUSTON ENCLEAN INC SAID IT EXPECTS TO RECORD CHARGES IN THE YEAR ENDED
JUNE 30 OF 35 TO 4 MILLION

THE ENVIRONMENTAL CLEANING SERVICES COMPANY SAID THE CHARGES ARE ASSOCIATED
WITH A CHANGE IN THE WAY IT ACCOUNTS FOR INCOME TAXES THE WRITEDOWN OF
CERTAIN PROPERTY EQUIPMENT INTANGIBLES AND OTHER RESTRUCTURING COSTS THE
SETTLEMENT OF CERTAIN SHAREHOLDER LITIGATION IN JUNE 1993 AND ACCRUALS FOR
THE COMPANY'S EMPLOYEE HEALTH BENEFITS PROGRAM

THE COMPANY SAID THE YEAREND CHARGES WON'T CHANGE THE TERMS OF A RUST
INTERNATIONAL INC SUBSIDIARY'S PLANNED TENDER OFFER FOR ALL SHARES OF
ENCLEAN COMMON STOCK 9307120129 930712 MARKETING & MEDIA SPRINT TO
LAUNCH OVERSEAS DISCOUNTS LIKE DOMESTIC PLAN  BY JOHN J KELLER
 STAFF REPORTER OF THE WALL STREET JOURNAL

SPRINT CORP IS LAUNCHING AN EASYTOUSE INTERNATIONAL DISCOUNT CALLING PLAN
IN ANOTHER BID TO POSITION ITSELF AS THE SIMPLEST CONSUMER PHONE SERVICE IN
THE LONGDISTANCE INDUSTRY

SPRINT'S PLAN WHICH A COMPANY OFFICIAL SAID WOULD BE DISCLOSED TODAY IN LOS
ANGELES IS CALLED THE MOST WORLDWIDE THE SERVICE EXPANDS INTERNATIONALLY
SPRINT'S THE MOST DOMESTIC CALLING SERVICE FOR RESIDENTIAL CUSTOMERS

LIKE THE DOMESTIC PROGRAM THE NEW OVERSEAS SERVICE IS DESIGNED TO TAKE THE
HEADACHE OUT OF DIALING FOR DISCOUNTS IN SPRINT'S CASE THESE NEW DISCOUNTS
COULD CUT AS MUCH AS 20 OR MORE OFF THE STANDARD PRICE OF AN OVERSEAS CALL

SPRINT PLANS TO UNVEIL THE NEW SERVICE IN TELEVISION AND PRINT
ADVERTISEMENTS IT GOES UP AGAINST AMERICAN TELEPHONE & TELEGRAPH CO AND
MCI COMMUNICATIONS CORP WHICH COLLECTIVELY SPEND ABOUT 15 BILLION A YEAR
ON ADS

SPRINT'S PLAN DIVIDES THE DAY FOR EACH COUNTRY INTO TWO 12HOUR CALLING
PERIODS STANDARD AND ECONOMY THE ECONOMY TIME PERIOD COVERS MORE
REASONABLE HOURS FOR EXAMPLE THE ECONOMY TIME PERIOD COVERS CALLS TO CHINA
FROM 8 PM TO 8 AM EVERY DAY WE DECIDED TO OFFER MORE CONVENIENT HOURS
WHEN SOMEBODY IS AWAKE TO MAKE A CALL AND RECEIVE THE DISCOUNT SAID DAVID
SCHMIEG PRESIDENT OF SPRINT'S CONSUMER SERVICES GROUP

IN CONTRAST CURRENT CALLING PLANS SUCH AS AT&T'S REACH OUT WORLD AND MCI'S
FRIENDS AROUND THE WORLD AND SPRINT'S OWN WORLD PROGRAM BREAK A DAY INTO
VARIOUS STANDARD ECONOMY AND DISCOUNT CALLING PERIODS AND CHARGE DIFFERENT
RATES IN EACH MOREOVER WEEKEND RATES CAN ALSO DIFFER MCI AND AT&T BOTH
SAID THEY HADN'T ANY CURRENT PLANS TO CHANGE THEIR PROGRAMS AN AT&T
SPOKESWOMAN SAID THAT WITH AT&T'S PLAN A CUSTOMER CAN SAVE MORE THAN 40 OFF
STANDARD RATES ON CALLS TO CERTAIN COUNTRIES

SPRINT ALSO HAS SIMPLIFIED ITS RATES LONGDISTANCE CUSTOMERS TYPICALLY PAY
A HIGH FEE FOR THE FIRST MINUTE OF AN INTERNATIONAL CALL AND ANOTHER
PERMINUTE CHARGE FOR THE REST OF THE CALL A CALL TO CHINA FOR EXAMPLE
WOULD REGULARLY COST 558 FOR THE FIRST MINUTE AND 163 FOR EACH
ADDITIONAL MINUTE UNDER SPRINT'S NEW PLAN A CALLER WOULD PAY A FLAT 176 A
MINUTE THAT'S 1760 FOR A 10MINUTE CALL COMPARED WITH 2025 WITH
STANDARD RATES 9307120128 930712 SHAWMUT FILES MOTION TO STOP
INVESTIGATION BY ATTORNEY GENERAL

BOSTON SHAWMUT NATIONAL CORP FILED A MOTION IN A MASSACHUSETTS COURT TO
STOP AN INVESTIGATION OF ITS MORTGAGE LENDING PRACTICES BY THE STATE
ATTORNEY GENERAL WHO IS PROBING BANK RECORDS FOR EVIDENCE OF RACIAL BIAS

THE ATTORNEY GENERAL SCOTT HARSHBARGER ISSUED SHAWMUT A CIVIL
INVESTIGATIVE DEMAND A TYPE OF CIVIL SUBPOENA LAST MONTH REQUESTING
COPIES OF ITS MORTGAGE LOAN APPLICATIONS AND OTHER DATA ON LENDING
DECISIONS ABOUT 30 LENDING INSTITUTIONS IN THE STATE HAVE RECEIVED SIMILAR
DEMANDS

SHAWMUT SAYS THAT UNDER MASSACHUSETTS LAW ONLY THE STATE COMMISSION AGAINST
DISCRIMINATION HAS THE AUTHORITY TO INVESTIGATE MATTERS OF RACIAL BIAS WE
FEEL THERE'S A REAL JURISDICTION QUESTION HERE SAID ROBERT GUENTHER A
SPOKESMAN FOR SHAWMUT BASED IN HARTFORD CONN THE BANK'S CHALLENGE TO THE
DEMAND WAS FILED IN STATE SUPERIOR COURT IN BOSTON

BUT THOMAS SAMOLUK A SPOKESMAN FOR THE ATTORNEY GENERAL'S OFFICE SAID
SHAWMUT'S CLAIM IS WRONG IT WOULD BE A SAD STATE OF AFFAIRS IF THE
ATTORNEY GENERAL THE TOP LAW ENFORCER WAS PROHIBITED FROM INVESTIGATING
RACIAL DISCRIMINATION MR SAMOLUK SAID THE ATTORNEY GENERAL PLANS TO
DEFEND HIS AUTHORITY IN COURT

MOST OF THE 30 LENDING INSTITUTIONS UNDER SCRUTINY HAVE COMPLIED WITH
REQUESTS FOR INFORMATION BUT FOUR OTHER BANKS HAVE CHALLENGED THE
INVESTIGATIVE DEMANDS THROUGH COURT MOTIONS DECISIONS ON THE CHALLENGES
FILED BY ABINGTON SAVINGS BANK BROOKLINE SAVINGS BANK FRAMINGHAM SAVINGS
BANK AND ROCKLAND TRUST CO ARE STILL PENDING MR SAMOLUK SAID

THE STATE'S INVESTIGATION FOLLOWS A STUDY CONDUCTED LAST YEAR BY THE FEDERAL
RESERVE BOARD WHICH IDENTIFIED SYSTEMATICALLY HIGHER DENIAL RATES FOR BLACK
AND HISPANIC APPLICANTS IN MORTGAGE LENDING BY MANY BOSTONAREA BANKS EVEN
AFTER ACCOUNTING FOR APPLICANT CREDIT HISTORIES AND OTHER CRITERIA

THE FEDERAL RESERVE LATER REFERRED SHAWMUT'S MORTGAGELENDING PRACTICES TO
THE US JUSTICE DEPARTMENT FOR POSSIBLE INVESTIGATION OF RACIAL BIAS WE
ARE COOPERATING WITH THE JUSTICE DEPARTMENT SAID MR GUENTHER THIS BANK
RECOGNIZES A NEED TO DO A BETTER JOB ON REACHING MINORITY BORROWERS BUT WE
HAVE NEVER DENIED A MORTGAGE ON THE BASIS OF RACE 9307120127 930712
DIVIDEND NEWS ADOBE SYSTEMS INC

ADOBE SYSTEMS INC DECLARED A 2FOR1 STOCK SPLIT PAYABLE AUG 10 TO STOCK
OF RECORD JULY 27 FOLLOWING COMPLETION OF THE SPLIT THE MOUNTAIN VIEW
CALIF COMPUTER SOFTWARE CONCERN WILL HAVE ABOUT 452 MILLION COMMON SHARES
OUTSTANDING 9307120126 930712 SPORT SUPPLY GETS CREDIT LINE

DALLAS SPORT SUPPLY GROUP INC SAID IT GOT A 225 MILLION THREEYEAR
REVOLVING CREDIT LINE FROM STANCHART BUSINESS CREDIT A COMMERCIAL BANK IN
LONDON

THE NEW CREDIT LINE REPLACES AN EXISTING 20 MILLION LINE AND CARRIES THE
SAME INTEREST RATE THE LONDON INTERBANK OFFERED RATE PLUS 075 PERCENTAGE
POINT A COMPANY SPOKESMAN SAID THE PROCEEDS OF THE CREDIT LINE WILL BE USED
TO FINANCE INVENTORY AS THE COMPANY GROWS

THE DIRECT MARKETER OF SPORTS EQUIPMENT ALSO SAID ITS CHAIRMAN MICHAEL
BLUMENFELD AND HIS FAMILY HAVE OFFERED TO PROVIDE AS MUCH AS 5 MILLION IN
DEBT OR EQUITY TO AID THE COMPANY IN MAKING ACQUISITIONS OR ACCELERATING ITS
EXPANSION PLANS 9307120125 930712 WHO'S NEWS WILLIAMS COS

WILLIAMS COS TULSA OKLA PETER C MEINIG WAS ELECTED TO THE BOARD OF
THIS PIPELINE NATURAL GAS AND TELECOMMUNICATIONS COMPANY BRINGING THE
BOARD'S SIZE TO 15 MR MEINIG 53 YEARS OLD IS CHAIRMAN OF ELECTROCOM
AUTOMATION INC A MAKER OF AUTOMATED DOCUMENTPROCESSING EQUIPMENT IN
ARLINGTON TEXAS 9307120124 930712 WORLD MARKETS FRANKFURT STOCKS'
RALLY IS EXPECTED TO CONTINUE ALBEIT AT A MODERATE PACE IN THE THIRD
QUARTER  BY SILVIA ASCARELLI SPECIAL TO THE WALL STREET JOURNAL

FRANKFURT THE RECENT RALLY IN FRANKFURT SHARE PRICES IS EXPECTED TO
CONTINUE AT A MODERATE PACE IN THE THIRD QUARTER HELPED BY A STRENGTHENING
DOLLAR AND ANTICIPATION OF BETTER GERMAN CORPORATE EARNINGS NEXT YEAR
ANALYSTS SAID

AT THE SAME TIME THEY DIDN'T RULE OUT A DROP FOR THE DAX INDEX BELOW 1700
DURING THE SUMMER DOLDRUMS WHICH WOULD PROVIDE OPPORTUNITIES FOR INVESTORS
TO INCREASE THEIR HOLDINGS

LONGER TERM TIME IS WORKING FOR STOCKS AND AGAINST BONDS SAID KARLHEINZ
SCHLOTTHAUER HEAD OF RESEARCH AT HELABA TRUST BERATUNGS & MANAGEMENT
GESELLSCHAFT GMBH IN FRANKFURT

WHILE MR SCHLOTTHAUER IS IN THE MORE CAUTIOUS CAMP FOR THE THIRD QUARTER
AND PREDICTS THE 30SHARE DAX WILL CLOSE LITTLE CHANGED AT AROUND 1700 ON
SEPT 30 OTHER ANALYSTS SEE THE INDEX BETWEEN 1750 AND 1800 A RANGE
EXPLORED IN LAST WEEK'S RALLY ON FRIDAY THE DAX ROSE 1371 POINTS TO
179741 AS SOME PROFITTAKING SET IN PROPELLED BY LAST THURSDAY'S
6394POINT SURGE THE INDEX LAST WEEK CHALKED UP FOUR CONSECUTIVE WINNING
SESSIONS AND FINISHED WITH A GAIN OF 9966 POINTS OR 59

IN THE CURRENT QUARTER THE SURPRISE COULD WELL BE ON THE UPSIDE FOR
GERMANY SAID NICK STEVENSON EUROPEAN EQUITY STRATEGIST AT SG WARBURG IN
LONDON HE SAID FUND MANAGERS NOW ARE GENERALLY UNDERWEIGHTED IN GERMANY

A FIRMER US DOLLAR WOULD HELP GERMAN EXPORTS BUT SPECULATION ABOUT LOWER
INTEREST RATES IS LIKELY TO BE A LESS IMPORTANT FACTOR PARTICULARLY AS THE
GERMAN BUNDESBANK THE CENTRAL BANK HAS REDUCED ITS RATES AS RECENTLY AS
JULY 1 AND THE IMMEDIATE OUTLOOK FOR EARNINGS ISN'T CONSIDERED OF MUCH HELP
TO THE MARKET

IF YOU LOOK AT THE EARNINGS PERFORMANCE OF ALMOST ALL THE COMPANIES IT'S
NOT EXACTLY INSPIRING FOR THIS YEAR SAID ROBERT WILLIS GERMAN EQUITY
ANALYST AT SG WARBURG IN LONDON IT'S A QUESTION OF HOW EARLY PEOPLE
START BUYING FOR 1994

SOME ANALYSTS DESCRIBE GERMANY'S ECONOMIC SLUMP AS THE WORST SINCE WORLD WAR
II THE GERMAN GOVERNMENT ISN'T RULING OUT A 2 CONTRACTION IN WESTERN
GERMANY'S GROSS DOMESTIC PRODUCT THIS YEAR PRIVATE ECONOMISTS SAY THE
SHRINKAGE MAY BE AS LARGE AS 25 THE ECONOMY IS EXPECTED TO BEGIN
REBOUNDING EITHER LATE THIS YEAR OR EARLY NEXT YEAR

BUT THE STREAM OF WEAKER ECONOMIC FORECASTS IS DIMINISHING SAID LOTHAR
WENIGER CHIEF EQUITY STRATEGIST AT DRESDNER INTERNATIONAL ADVISORS GMBH
THE RESEARCH UNIT OF DRESDNER BANK I BELIEVE THE NEGATIVE REVISIONS TO
ECONOMIC FORECASTS THAT HAVE TAKEN PLACE ARE SLOWLY COMING TO AN END AND
THE VIEW WILL TURN TO GROWTH HE SAID

MR WENIGER SAID HE IS KEEN ON CYCLICAL SECTORS AUTO STEEL AND CHEMICAL
SHARES ARE CHEAP WHEN USING PREVIOUS PEAK EARNINGS AS A MEASURE OF THEIR
POTENTIAL WE SEE THE PROFITABILITY DYNAMIC FOR NEXT YEAR STRONGEST THERE
HE SAID

AT SG WARBURG MR WILLIS SAID THAT RATHER THAN SECTORS THE COMPANY IS
EMPHASIZING QUALITY CYCLICALS SUCH AS CERTAIN CHEMICAL STEEL METAL AND
PHARMACEUTICAL CONCERNS

ANALYSTS ARE SPLIT ON THE CONSTRUCTION SECTOR WHICH MR WILLIS ARGUES WILL
REMAIN SHELTERED FROM THE BROADBASED SLUMP BECAUSE OF GERMANY'S HOUSING
SHORTAGE AND THE BUILDING AND RENOVATION UNDER WAY IN THE FIVE EASTERN
GERMAN STATES BUT DRESDNER'S MR WENIGER SEES EARNINGS GROWING IN THE
SECTOR THOUGH NOT AS POWERFULLY AS IN THE PAST

FINANCIAL SHARES WHICH ACCOUNT FOR 30 OF THE DAX INDEX ARE JUDGED NEUTRAL
INVESTMENTS THEIR STOCK PRICES HAVE ALREADY RISEN ON EXPECTATIONS OF LOWER
GERMAN RATES

ANALYSTS GIVE A BROAD THUMBSDOWN TO RETAILERS AND DEFENSIVE SHARES SUCH AS
UTILITIES MR SCHLOTTHAUER OF HELABA TRUST SAID POOR CONSUMER SENTIMENT
RISING UNEMPLOYMENT AND EXPECTATIONS OF HIGHER TAXES AND LEVIES SPELL WEAK
CONSUMER DEMAND FOR YEARS TO COME

TOKYO STOCKS ROSE 1 FRIDAY ON UNFLAGGING EXPECTATIONS FOR A JAPANESE
INTERESTRATE CUT SOON LONDON SHARES FELL LEADING PARTICIPANTS TO CONCLUDE
THE MARKET MAY HAVE ENTERED A BEAR TREND THE DOW JONES WORLD STOCK INDEX
SLIPPED 035 TO 10541

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 32 POINTS THURSDAY CLIMBED
18872 TO 1987739 ON MONDAY THE NIKKEI INDEX ROSE 1770 POINTS TO CLOSE
THE MORNING SESSION AT 1989509 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED
AT 480 MILLION SHARES UP FROM 3497 MILLION SHARES A DAY EARLIER THOUGH
42 OF TURNOVER CAME IN THE FIRST HOUR IN POSITIONING TIED TO SETTLEMENT OF
JULY INDEX OPTIONS GAINERS TROUNCED LOSERS 761227 THE TOKYO STOCK PRICE
INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 655 POINTS
THURSDAY ADVANCED 1769 OR 11 TO 160862

FINANCIAL SHARES WERE THE BEST PERFORMERS ON RATECUT SPECULATION FUELED BY
PART OF THE FINAL COMMUNIQUE FROM THE TOKYO SUMMIT OF THE GROUP OF SEVEN
INDUSTRIAL NATIONS JAPAN WILL IMPLEMENT FISCAL AND MONETARY MEASURES AS
NECESSARY TO ENSURE SUSTAINED NONINFLATIONARY GROWTH LED BY STRONG DOMESTIC
DEMAND

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 27
POINTS TO 28432 THE FT 30STOCK INDEX EDGED UP 14 POINTS TO 22292
VOLUME WAS 6005 MILLION SHARES COMPARED WITH 5777 MILLION SHARES A DAY
EARLIER STOCKS SHOWED STRENGTH DURING THE MORNING SESSION TAKING THE
100STOCK INDEX TO A HIGH OF 28582 ON WALL STREET'S RALLY A DAY EARLIER
BUT THE SEPTEMBER STOCKINDEX FUTURES CONTRACT FELL TAKING THE STOCK MARKET
DOWN WITH IT

PARIS SHARES ROSE DESPITE THE FRENCH FRANC'S WEAKNESS AS INVESTORS MANY
OF THEM US FUNDS ENTERED THE MARKET IN A GAMBLE ON A POSSIBLE DEVALUATION
OF THE FRENCH CURRENCY WHICH WOULD MAKE STOCKS MORE ATTRACTIVELY PRICED
STOCKHOLM EQUITIES ADVANCED TO A NEW 1993 HIGH AIDED BY A FIRM DOLLAR THAT
BOOSTED EXPORTERS AND THE PHARMACEUTICAL SECTOR BRUSSELS SHARES JUMPED
13 BUOYED BY NEW BUYING AS A NEW TRADING ACCOUNT OPENED

IN SYDNEY STOCKS ROSE TO LIFT THE ALLORDINARIES INDEX TO ITS HIGHEST CLOSE
IN ALMOST SIX YEARS IN HONG KONG EARLY GAINS CRUMBLED INTO SOLID LOSSES ON
RUMORS THAT CHINESE PARAMOUNT LEADER DENG XIAOPING WAS HAVING HEALTH
PROBLEMS IN TAIPEI BARGAINHUNTING PUSHED STOCKS HIGHER

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
9307120123 930712 BUSINESS BRIEF NEC CORP MOST COLOR TV PRODUCTION
 TO BE MOVED TO THAILAND

THE HOME ELECTRONICS UNIT OF JAPAN'S NEC CORP WILL STOP MAKING COLOR
TELEVISIONS IN JAPAN AND TRANSFER MOST OF THE PRODUCTION RESPONSIBILITIES TO
A PLANT IN THAILAND A COMPANY OFFICIAL SAID

NEC HOME ELECTRONICS LTD THE WHOLLY OWNED SUBSIDIARY IS BANKING ON LOWER
PRODUCTION COSTS IN SOUTHEAST ASIA TO HELP PULL ITS LOSSPLAGUED COLOR TV
OPERATIONS INTO THE BLACK SHE SAID

THE OFFICIAL SAID NEC HOME ELECTRONICS WILL INVEST 1 BILLION YEN 92
MILLION THROUGH OCTOBER IN A NEW PLANT IN THE BANGKOK VICINITY TO BRING ITS
THAI PRODUCTION CAPACITY OF COLOR TELEVISIONS TO 800000 SETS A YEAR FROM
450000 SETS A YEAR

NEC HOME ELECTRONICS' PLANT IN CENTRAL JAPAN WHICH NOW MAKES COLOR
TELEVISIONS TURNS OUT ABOUT 25000 SETS A YEAR DOWN FROM A PEAK OF 600000
SETS A YEAR AROUND 1990 THE OFFICIAL SAID 9307120122 930712 BUSINESS
BRIEF SOUTHERN UNION TO BUY SOME PROPERTIES OF WESTERN RESOURCES FOR
360 MILLION

AUSTIN TEXAS SOUTHERN UNION CO SAID IT AGREED TO BUY WESTERN RESOURCES
INC'S MISSOURI NATURAL GAS PROPERTIES AND OPERATIONS FOR ABOUT 360
MILLION WITH THE EXACT PRICE TO BE SET AT CLOSING

THE TRANSACTION IF APPROVED BY GOVERNMENT REGULATORS WILL MORE THAN DOUBLE
SOUTHERN UNION'S CUSTOMER BASE THE UTILITY SAID IT WILL FINANCE THE
PURCHASE THROUGH A DEBT OFFERING AND A SUBSCRIPTION RIGHTS OFFERING OF
COMMON STOCK TO EXISTING SHAREHOLDERS

THE PROPERTIES SERVE 460000 CUSTOMERS AND GENERATE ANNUAL REVENUE OF ABOUT
299 MILLION WESTERN RESOURCES SAID THAT'S A BIG BITE FOR SOUTHERN UNION
WHICH POSTED 1807 MILLION IN REVENUE LAST YEAR AND CURRENTLY SERVES ABOUT
428000 CUSTOMERS IN TEXAS AND OKLAHOMA

A SOUTHERN UNION SPOKESWOMAN SAID THAT IN ADDITION TO BOOSTING REVENUE FROM
NEW MOSTLY RESIDENTIAL CUSTOMERS THE ACQUISITION WILL GIVE THE UTILITY A
KANSAS OFFICE FROM WHICH TO EXPAND ITS NATURAL GAS VEHICLE MARKET THERE

SOUTHERN UNION'S STOCK WAS UP 625 CENTS TO 2050 IN COMPOSITE TRADING ON
THE AMERICAN STOCK EXCHANGE FRIDAY WESTERN RESOURCES WHICH PLANS TO USE
THE PROCEEDS TO PAY OFF DEBT AND BUILD FLEXIBILITY IN THE BALANCE SHEET
SAW ITS STOCK RISE 25 CENTS TO 36125 IN THE NEW YORK STOCK EXCHANGE
COMPOSITE TRADING

WESTERN RESOURCES WITH HEADQUARTERS IN TOPEKA KAN PROVIDES NATURAL GAS
SERVICE TO ABOUT 1083000 CUSTOMERS IN KANSAS WESTERN MISSOURI AND NOTHERN
OKLAHOMA THE UTILITY PROVIDES ELECTRIC SERVICE TO ABOUT 578000 CUSTOMERS
IN EASTERN AND CENTRAL KANSAS 9307120121 930712 DRUG MAKERS LIKELY TO
SHOW SLIM PROFIT RISE  BUT SECONDPERIOD RESULTS ARE EXPECTED TO
EXCEED FIRST QUARTER'S LEVEL  BY ELYSE TANOUYE STAFF REPORTER OF
THE WALL STREET JOURNAL

WEAK SALES IN KEY EUROPEAN MARKETS AND PRICING PRESSURE IN THE US DAMPED
PHARMACEUTICAL COMPANY EARNINGS GROWTH IN THE SECOND QUARTER

ANALYSTS PREDICT THAT PRESCRIPTION DRUG COMPANIES WILL REPORT PERSHARE
OPERATING PROFIT GROWTH OF ABOUT 6 AND SALES INCREASES OF BETWEEN 4 AND
6 ALTHOUGH OFF FROM THE DOUBLEDIGIT INCREASES OF YEARS PAST THE
SECONDQUARTER RESULTS WILL BE AN IMPROVEMENT FROM THE FIRST QUARTER'S
PERFORMANCE ANALYSTS SAID

INTERNATIONAL SALES CONTINUED TO BE A DRAG ON REVENUE GROWTH IN THE SECOND
QUARTER DRUG SALES IN GERMANY WHICH DROPPED OFF BY ABOUT A THIRD IN THE
FIRST QUARTER BECAUSE OF GOVERNMENT COSTCONTAINMENT ACTIONS RECOVERED
SOMEWHAT IN THE SECOND QUARTER SAID MARIOLA B HAGGAR A DRUG INDUSTRY
ANALYST AT SALOMON BROTHERS INC SECONDQUARTER GERMAN DRUG SALES WILL BE
DOWN ABOUT 15 SHE PREDICTED

BUT EVEN AS THE GERMAN MARKET IMPROVED SALES IN ITALY WERE HIT BY
GOVERNMENTIMPOSED PRICE CUTS ANALYSTS SAID MOREOVER NEGATIVE FOREIGN
CURRENCY TRANSLATIONS WILL REDUCE REVENUES BY ABOUT 2 SAID D LARRY SMITH
AN INDUSTRY ANALYST AT HAMBRECHT & QUIST BRISTOLMYERS SQUIBB CO AND MERCK
& CO IN PARTICULAR WILL BE HURT BY THE PROBLEMS IN INTERNATIONAL MARKETS
ANALYSTS SAID

IN THE US MARKET PRESSURES ON PRICES BY POLITICIANS AND BIG BUYERS
CONTINUE TO RESTRAIN REVENUE GROWTH THE GLARE OF THE POLITICAL SPOTLIGHT IS
KEEPING MOST MAJOR PHARMACEUTICAL COMPANIES FROM BIG PRICE INCREASES
MEANWHILE POWERFUL INSTITUTIONAL BUYERS CONTINUE EXACTING STEEP DISCOUNTS
FOR DRUGS

EARNINGS ARE GROWING SLIGHTLY FASTER THAN SALES IN PART BECAUSE OF COST
CUTTING COMPANIES ARE CLOSING PLANTS IN EUROPE AND SOUTH AMERICA TRIMMING
SALES FORCES AND LEAVING FEWER FREE SAMPLES WITH DOCTORS SAID RONALD
NORDMANN AN INDUSTRY ANALYST AT PAINEWEBBER THE EARNINGS NUMBERS WILL GET
BETTER IN 1994 BECAUSE SOME OF THE COST SAVINGS IN 1993 WILL BEGIN TO PAY
OFF MR NORDMANN SAID

BUT ANOTHER WAY COMPANIES SUCH AS PFIZER INC AND SCHERINGPLOUGH CORP ARE
BOOSTING EARNINGS IS THROUGH THE GROWTH OF NEW PRODUCTS WHICH HAVE HIGHER
PROFIT MARGINS A NEW DRUG CAN HAVE A GROSS MARGIN WHICH INCLUDES
MANUFACTURING COSTS BUT EXCLUDES RESEARCH AND DEVELOPMENT MARKETING AND
OTHER CORPORATE COSTS OF 90 MS HAGGAR SAID OLDER DRUGS THAT FACE
GENERIC COMPETITION OR EVEN NEWER DRUGS THAT COMPETE IN CROWDED CATEGORIES
CAN HAVE MARGINS OF 50 TO 70 SHE SAID

A BRIGHT SPOT IN THE INDUSTRY IS THE STRENGTHENING OF MARKETS IN EMERGING
COUNTRIES MR SMITH SAID PEOPLE HAVE ALWAYS IGNORED LATIN AMERICAN AND
PACIFIC RIM COUNTRIES AS INSIGNIFICANT YET IN THE AGGREGATE THEY SEEM TO
BE PROVIDING A LITTLE BIT OF A THRUST IN THE SECOND QUARTER HE SAID

THE STARS OF THE QUARTER ONCE AGAIN ARE PFIZER AND SCHERINGPLOUGH BOTH OF
WHICH ARE EXPECTED TO REPORT DOUBLEDIGIT EARNINGS INCREASES PFIZER'S
ANTIDEPRESSANT ZOLOFT HEART DRUGS NORVASC AND PROCARDIA XL AND ANTIFUNGAL
DIFLUCAN CONTINUED TO PROPEL REVENUE AND EARNINGS GROWTH ANALYSTS SAID
ANALYSTS EXPECT OPERATING EARNINGS TO INCREASE BY MORE THAN 25 A PFIZER
SPOKESWOMAN DECLINED TO COMMENT ON ANALYSTS' ESTIMATES

SCHERINGPLOUGH'S NEW ANTIHISTAMINE CLARITIN DID SURPRISINGLY WELL IN ITS
FIRST MONTH CAPTURING 13 OF NEW ANTIHISTAMINE PRESCRIPTIONS IN ITS FIRST
FULL MONTH MAY DESPITE ITS LAUNCH LATE IN THE ALLERGY SEASON CLARITIN
BENEFITED FROM WARNINGS ISSUED BY THE FOOD AND DRUG ADMINISTRATION LAST YEAR
THAT MARION MERRELL DOW INC'S SELDANE AND JOHNSON & JOHNSON'S HISMANAL MAY
CAUSE RARE HEART PROBLEMS IF TAKEN WITH CERTAIN ANTIFUNGAL OR ANTIBIOTIC
DRUGS ANALYSTS SAID SCHERING'S ANTIVIRAL AND ANTICANCER DRUG INTRON A
ALSO CONTINUED TO DO WELL IN JAPAN

ANALYSTS EXPECT SCHERING TO EARN 108 A SHARE IN THE SECOND QUARTER
ACCORDING TO ZACKS INVESTMENT RESEARCH INC THAT WOULD BE A 17 INCREASE
FROM THE 92 CENTS A SHARE EARNED A YEAR AGO A SPOKESMAN FOR SCHERING
DECLINED TO COMMENT ON THE ESTIMATES

BESIDES BEING HURT BY THE WEAK GERMAN AND ITALIAN MARKETS MERCK'S
SECONDQUARTER EARNINGS GROWTH WILL BE SLUGGISH IN PART BECAUSE IT REFLECTS
CONTINUED HEAVY SPENDING TO MARKET PROSCAR ITS PROSTATE DRUG ANALYSTS
SAID MERCK IS EXPECTED TO REPORT SECONDQUARTER EARNINGS OF 61 CENTS A
SHARE ACCORDING TO ZACKS A YEAR AGO IT EARNED 57 CENTS A SPOKESMAN
DECLINED TO COMMENT ON ANALYST ESTIMATES

MARION MERRELL DOW IS EXPECTED TO POST ANOTHER QUARTER OF SHARPLY LOWER
EARNINGS SALES OF ITS THREE MAJOR PRODUCTS SELDANE HEART DRUG CARDIZEM
AND ITS NICOTINE PATCH NICODERM HAVE ALL DECLINED FROM A YEAR AGO
ANALYSTS SAID

MARION IS EXPECTED TO POST EARNINGS OF 50 CENTS A SHARE ACCORDING TO ZACKS
A YEAR AGO IT EARNED 70 CENTS A SHARE A SPOKESMAN DECLINED TO COMMENT ON
THE ANALYSTS' PROJECTIONS 9307120120 930712 NEW SECURITIES ISSUES

THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND
NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY
DOW JONES CAPITAL MARKETS REPORT

CHESAPEAKE POTOMAC TELEPHONE 100 MILLION OF NOTES DUE JULY 15 2005
PRICED AS 6125S AT 99822 TO YIELD 6146 ACCORDING TO MCM CORPORATEWATCH
THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 0375 PERCENTAGE POINT ABOVE
THE TREASURY 10YEAR NOTE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC
AND DOUBLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH
UNDERWRITERS LED BY LEHMAN BROTHERS CHESAPEAKE POTOMAC TELEPHONE IS A UNIT
OF BELL ATLANTIC CORP

FIRST UNION CORP 250 MILLION OF SUBORDINATED NOTES DUE JULY 15 2005
PRICED AS 6625S AT 99778 TO YIELD 6652 ACCORDING TO MCM CORPORATEWATCH
THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 09 PERCENTAGE POINT ABOVE
THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY
S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO

FLORIDA POWER CORP 110 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1
2003 WON IN COMPETITIVE BIDDING BY A GROUP OF UNDERWRITERS LED BY JP
MORGAN SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE ISSUE WAS
REOFFERED AS 6S AT 99071 TO YIELD 6127 REPRESENTING A NET INTEREST COST
TO THE COMPANY OF 6156 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF
0375 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED
DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P FLORIDA POWER IS A UNIT OF
FLORIDA PROGRESS CORP

HERTZ CORP 400 MILLION TWOPART ISSUE OF JUNIOR SUBORDINATED NOTES
PRICED BY UNDERWRITERS LED BY JP MORGAN SECURITIES CORP ACCORDING TO MCM
CORPORATEWATCH THE FIRST PART 150 MILLION OF JUNIOR SUBORDINATED NOTES
DUE JULY 15 2000 WAS PRICED AS 6625S AT 9994 TO YIELD 6636 IT WAS
PRICED AT A SPREAD OF 12 PERCENTAGE POINTS ABOVE THE TREASURY SEVENYEAR
NOTE THE SECOND PART 250 MILLION OF JUNIOR SUBORDINATED NOTES DUE JULY
15 2003 WAS PRICED AS 7S AT 9988 TO YIELD 7017 IT WAS PRICED AT A
SPREAD OF 125 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE BOTH PARTS
ARE NONCALLABLE THE ISSUES ARE RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P
HERTZ IS A UNIT OF PARK RIDGE CORP

NORTHERN TRUST CORP 100 MILLION OF BANK NOTES DUE JULY 16 1994 PRICED
AT PAR TO YIELD 35 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS
NONCALLABLE RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE
ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC

PACIFIC BELL 300 MILLION OF DEBENTURES DUE JULY 15 2043 PRICED AS
7375S AT 99373 TO YIELD 7423 ACCORDING TO MCM CORPORATEWATCH THE ISSUE
IS NONCALLABLE FOR 20 YEARS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS
BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS
INC PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP

FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY JP MORGAN SECURITIES
INC THE OFFERING SERIES 1568 IS BACKED BY THE AGENCY'S STRIPPED MORTGAGE
BACKED SECURITIES TRUST GOLD 150 THE COLLATERAL HAS A WEIGHTED AVERAGE
COUPON RATE OF 815 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 294
YEARS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE
MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE
OFFERING SERIES 1993138 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE
SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND
WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS

AIGAN CO JAPAN 65 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE
JULY 23 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 1125 COUPON AT
PAR VIA NOMURA BANK SWITZERLAND EACH 50000FRANC NOTE CARRIES 50
WARRANTS EXERCISABLE FROM AUG 6 1993 TO JULY 16 1997 TO BUY COMPANY
SHARES FINAL TERMS FIXED JULY 16 FEES 1625 POINTS

ARACRUZ CELLULOSE BRAZIL 80 MILLION OF 9 EUROBONDS DUE JULY 22 1998
AT ISSUE AND REOFFER PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD BONDS
CALLABLE ON JULY 22 1996 AT PAR PUT OPTION EXERCISEABLE SAME DAY AT 993
CALL NOTICE PROCEEDS PUT NOTICE BONDS YIELD 879 SEMIANNUAL A MARGIN
OF 450 BASIS POINTS OVER COMPARABLE THREEYEAR US TREASURY NOTE FEES ONE
POINT

COMMERZBANK OVERSEAS FINANCE GERMAN PARENT 300 MILLION SWISS FRANCS OF
PRIVATELY PLACED NOTES DUE AUG 17 2000 WITH EQUITYPURCHASE WARRANTS
CARRYING A 25 COUPON AT PAR VIA SWISS BANK CORP EACH 50000FRANC NOTE
CARRIES 200 WARRANTS AND TWO WARRANTS BUY ONE BEARER SHARE WARRANTS
EXERCISIABLE AUG 24 1994 TO AUG 28 1996 FINAL TERMS FIXED JULY 14

COMMERZBANK OVERSEAS FINANCE NV CURACAO GERMAN PARENT 250 MILLION DUTCH
GUILDERS OF 625 EUROBONDS DUE AUG 10 1998 AT ISSUE PRICE 10085 VIA
RABOBANK NEDERLAND AND COMMERZBANK NEDERLAND NV REOFFERED AT 1001 TO YIELD
623 A MARGIN OF 23 BASIS POINTS ABOVE DUTCH STATE LOAN GUARANTOR
COMMERZBANK AG FRANKFURT FEES ONE POINT

CREDIT FONCIER DE FRANCE FRANCE 150 BILLION ITALIAN LIRE OF 10
EUROBONDS DUE AUG 20 2003 AT ISSUE PRICE 102664 VIA DEUTSCHE BANK AG
LONDON BONDS YIELD 989 AFTER DEDUCTING FULL FEES OF TWO POINTS

CS HOLDING SWITZERLAND 500 MILLION SWISS FRANCS OF BONDS DUE AUG 6
2001 WITH WARRANTS TO ACQUIRE BEARER SHARES CARRYING A 25 COUPON AT PAR
VIA CREDIT SUISSE WARRANTS EXERCISABLE FROM AUG 9 1993 TO SEPT 20
1996 AT EXERCISE PRICE 2860 FRANCS EACH 5000FRANC NOTE CARRIES 20
WARRANTS AND 10 WARRANTS BUY ONE BEARER SHARE IN CS HOLDING FEES
UNDISCLOSED

ELF AQUITAINE FRANCE ONE BILLION FRENCH FRANCS OF 7125 EUROBONDS DUE
AUG 11 2003 AT ISSUE PRICE 101105 VIA CREDIT COMMERCIAL DE FRANCE
REOFFERED AT 9948 TO YIELD 72 A SPREAD OF 39 BASIS POINTS OVER
COMPARABLE FRENCH TREASURY NOTE FEES TWO POINTS 9307120119 930712
POLITICS & POLICY WHILE CLINTON RETURNS FROM TOKYO PERHAPS HOLDING A
PSYCHOLOGICAL EDGE  BY JACKIE CALMES STAFF REPORTER OF THE WALL
STREET JOURNAL

WASHINGTON PRESIDENT CLINTON BACK FROM A SUCCESSFUL SUMMIT IN TOKYO IS
HOPING TO PARLAY THE KUDOS HE RECEIVED ON THE WORLD STAGE TO SUCCESS IN THIS
WEEK'S HOUSESENATE CONFERENCE THAT WILL DETERMINE THE FATE OF HIS ECONOMIC
PROGRAM

AT THE CLOSE OF THE GROUP OF SEVEN ECONOMIC SUMMIT MR CLINTON SAID THE
OTHER COUNTRIES WERE VERY MUCH ENCOURAGED BY THE DETERMINATION OF THE UNITED
STATES TO REDUCE ITS DEFICIT HE ADDED I AM HOPING THAT WHAT HAPPENED 
 WILL STRENGTHEN THE RESOLVE OF THE CONGRESS TO GO AHEAD AND PASS THE
ECONOMIC PLAN AND DO IT IN SHORT ORDER

LIKEWISE SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN THE LAWMAKER
WHO WILL LEAD THE NEGOTIATIONS THAT START THURSDAY AGREED DURING AN
APPEARANCE YESTERDAY ON NBC'S MEET THE PRESS THAT MR CLINTON RIDES
MOMENTUM GOING INTO THE CAPITOL TALKS BUT MEMBERS OF CONGRESS ALSO ARE
RETURNING TO TOWN AFTER A WEEKLONG FOURTH OF JULY RECESS AND MANY ARE
BEARING BAD REVIEWS FROM THEIR HOME DISTRICTS FOR THE PRESIDENT'S PROGRAM OF
TAX INCREASES AND SPENDING CUTS

DEMOCRATIC LEADERS INSIST CONGRESS WILL PASS A BILL BEFORE IT BREAKS IN
AUGUST FOR ITS SUMMER RECESS IF ONLY BECAUSE FAILURE IS POLITICALLY THE
WORSE ALTERNATIVE NEVERTHELESS CONSTITUENTS' COMPLAINTS ARE CERTAIN TO
COMPLICATE THE DELICATE TASK OF REACHING A COMPROMISE BETWEEN THE HOUSE AND
SENATE BILLS SINCE BOTH PASSED THEIR RESPECTIVE CHAMBERS BY THE NARROWEST
OF MARGINS NEGOTIATORS HAVE LITTLE MANUEVERING ROOM AND NO MARGIN FOR
ERROR

MANY LAWMAKERS ARE ON THE CONFERENCE COMMITTEE WHICH COULD GO ON FOR TWO OR
THREE WEEKS THE SENATE HAS NAMED 52 OF ITS MEMBERS AS CONFEREES AND THE
HOUSE THIS WEEK WILL NAME SCORES MORE BUT THAT UNWIELDY GROUP WILL QUICKLY
BREAK INTO A DOZEN OR SO SMALLER CONFERENCES TO HANDLE VARIOUS SIDE ISSUES

THE CRUCIAL WORK WILL BE DONE BY THE CHAIRMEN OF THE TAXWRITING SENATE
FINANCE AND HOUSE WAYS AND MEANS COMMITEES SEN MOYNIHAN D NY AND
REP DAN ROSTENKOWSKI D ILL ALONG WITH THE HOUSE AND SENATE DEMOCRATIC
LEADERS

THEIR MAIN ORDER OF BUSINESS IS DECIDING THE SIZE AND SHAPE OF AN ENERGY
TAX SEN MOYNIHAN IN THE TELEVISION INTERVIEW YESTERDAY ACKNOWLEDGED WHAT
HAS GENERALLY BEEN ASSUMED FOR WEEKS THAT MR CLINTON'S PROPOSED
BROADBASED TAX ON ENERGY CONSUMPTION WHICH THE HOUSE RELUCTANTLY PASSED
IS DEAD THAT LEVY WOULD HAVE RAISED ABOUT 50 BILLION MORE IN THE FIRST
FIVE YEARS THAN THE SENATE BILL'S ALTERNATIVE 43 CENTSAGALLON TAX
INCREASE ON GASOLINE AND OTHER FUELS HOWEVER AND NEGOTIATORS NEED ALL THE
REVENUE THEY CAN GET TO OFFSET THE COST OF OTHER INITIATIVES FOR THE POOR
AND FOR SMALL BUSINESSES THAT HOUSE DEMOCRATS IN PARTICULAR DEMAND

SEN MOYNIHAN ECHOING REP ROSTENKOWSKI'S PAST SPECULATION AGREED THE
CONFERENCE COMMITTEE MIGHT APPROVE A SLIGHTLY HIGHER FUELSTAX INCREASE THAN
THE SENATE PASSED ALONG WITH AN EXCISE TAX ON UTILITY BILLS IN AN EFFORT
BOTH TO RAISE REVENUE AND TO TAX ENERGY CONSUMPTION MORE BROADLY

HE SAID THE FINAL BILL WOULD INCLUDE A 35 CORPORATE TAX WHICH IS A ONE
PERCENTAGE POINT INCREASE OVER THE CURRENT RATE SOME HOUSE DEMOCRATS HAVE
CALLED FOR A GREATER INCREASE AS A WAY TO HOLD DOWN OR REPLACE ANY ENERGY
TAX

THE SENATOR ALSO REEMPHASIZED THAT THE PROPOSED INCOME TAX INCREASES FOR
TOPINCOME INDIVIDUALS SHOULD BE EFFECTIVE FROM THIS PAST JULY 1 INSTEAD OF
JAN 1 AS MR CLINTON AND THE HOUSE BILL PROPOSE IN PRACTICE HOWEVER THE
ENTIRE YEAR'S INCOME FOR AFFECTED INDIVIDUALS WOULD BE SUBJECT TO THE NEW
TAX THOUGH THE RATE INCREASE FOR 1993 ONLY WOULD BE HALF WHAT MR CLINTON
AND THE HOUSE BILL PROPOSE

NO REPUBLICANS VOTED FOR EITHER THE HOUSE OR SENATE DEFICITREDUCTION BILL
AND WHEN REMINDED ON YESTERDAY'S TALK SHOW THAT NO MAJOR LEGISLATION HAD
PASSED IN THIS CENTURY WITHOUT AT LEAST MINIMAL BIPARTISAN SUPPORT SEN
MOYNIHAN REPLIED WE'RE ABOUT TO MAKE HISTORY

MEANWHILE THE ADMINISTRATION IS PLANNING A FULLCOURT PRESS TO INFLUENCE
THE CONFERENCE COMMITTEE'S OUTCOME ROGER ALTMAN THE TREASURY DEPUTY
SECRETARY WILL FOLLOW THE DELIBERATIONS FULL TIME ADDITIONAL ROLES WILL BE
PLAYED BY TREASURY SECRETARY LLOYD BENTSEN WHITE HOUSE CHIEF OF STAFF
THOMAS MCLARTY AND BUDGET DIRECTOR LEON PANETTA

REP ROSTENKOWSKI REPEATEDLY HAS URGED MR CLINTON TO DO MORE TO HELP SELL
THE PROGRAM NOW THAT THE PRESIDENT IS BACK FROM ASIA HE'LL TRY TO DO SO
HE'S CONSIDERING A TELEVISED SPEECH URGING SUPPORT FOR HIS PLAN THAT
PROBABLY WILL COME AT THE END OF THE CONFERENCE BEFORE THE FULL HOUSE AND
SENATE VOTE ON THE CONFERENCE'S FINAL PRODUCT SEE RELATED STORY DOING
THE DEAL THE DEFICITREDUCTION CONFERENCE PARTIES PRESIDENT AND
TAXPAYERS ARE UNITED BY STAKES THEY HAVE IN DEFICIT BILL FIGHT WSJ
JULY 12 1993 9307120118 930712 LETTERS TO THE EDITOR THERE'S NO EASY
WAY TO MAKE DAD BEHAVE

I HAVE READ AND REREAD WHERE DAD BELONGS BY JAY LEFKOWITZ EDITORIAL PAGE
JUNE 18 SEVERAL TIMES AND REMAIN AMAZED AND OUTRAGED MR LEFKOWITZ
CERTAINLY RAISES A WORTHWHILE ISSUE THE IMPORTANCE OF RESPONSIBLE FATHERS
IN THE RAISING OF CHILDREN HOWEVER HIS PROPOSED SOLUTIONS ARE THOUGHTLESS
AND PUNITIVE AND WOULD DO NOTHING TO HELP THE OBJECTS OF HIS CONCERN 
CHILDREN

HE POINTS OUT THAT THE SOCIOLOGY OF DYSFUNCTIONAL FAMILIES HAS FOCUSED
ALMOST EXCLUSIVELY ON THE ISSUE OF SINGLE MOTHERS AND THAT IT IS EQUALLY
IF NOT MORE IMPORTANT TO REPROACH IRRESPONSIBLE FATHERS

HOW DOES HE PROPOSE TO REPROACH IRRESPONSIBLE FATHERS BY FORCING PEOPLE
UNHAPPILY MARRIED TO EACH OTHER TO REMAIN TOGETHER AND BY MANDATING THAT THE
IRRESPONSIBLE FATHER BE NOTIFIED OF HIS WIFE'S PROPOSED ABORTION IMPLICIT
IN HIS LATTER SUGGESTION IS THE IDEA THAT NO WOMAN ESPECIALLY A MARRIED
WOMAN SEEKING AN ABORTION HAS ANY REASON FOR DOING SO OTHER THAN A BAD
ONE

IN REALITY IT IS FAR MORE LIKELY THAT A MARRIED WOMAN SEEKING AN ABORTION
IS DOING SO TO AVOID INFLICTING AN ABUSIVE HUSBAND ON THE CHILD OR TO AVOID
IMPOSING A FINANCIAL HARDSHIP ON AN ALREADY PRESSED FAMILY OR FOR SOME
OTHER EQUALLY PRESSING REASON WHILE MR LEFKOWITZ POINTS OUT THE
UNFORTUNATE INCREASE IN UNWED MOTHERS NOT ONE OF HIS PROPOSALS ADDRESSES
THIS PROBLEM

I AGREE THAT THE CARE OF CHILDREN IS CRITICAL TO A SOUND SOCIETY HOWEVER
THE SOLUTION DOES NOT LIE IN SUCH PUNITIVE PROPOSALS IF MR LEFKOWITZ IS
GENUINELY CONCERNED FOR THE WELFARE OF CHILDREN PERHAPS HE SHOULD CONSIDER
HOW TO ENCOURAGE PEOPLE NOT TO HAVE CHILDREN UNTIL THEY ARE EMOTIONALLY AND
FINANCIALLY READY

IF THIS COUNTRY REALLY CARED ABOUT ITS CHILDREN RATHER THAN SIMPLY PAYING
LIP SERVICE TO THE CONCEPT OF DAY CARE SUCH CARE WOULD BE AVAILABLE TO ALL
ABORTION WOULD BE AVAILABLE TO ALL AND YOUNG MEN WOULD HAVE EARLY LESSONS
IN BIRTH CONTROL AND ACCESS TO SAME

THE THREE RECOMMENDATIONS MR LEFKOWITZ PUTS FORTH TO ENCOURAGE RESPONSIBLE
FATHERHOOD MISS THE POINT HE MAKES EARLIER IN HIS ARTICLE THAT MANY
SINGLE MOTHERS ESPECIALLY TEENAGE MOTHERS ARE NOT MARRIED MAKING DIVORCE
MORE DIFFICULT PASSING SPOUSAL NOTIFICATION LAWS FOR ABORTION AND
ELIMINATING THE MARRIAGE PENALTY WILL NOT HELP MOTHERS WHOSE PARTNERS BEHAVE
IRRESPONSIBLY TOWARD OR DO NOT ACKNOWLEDGE THEIR OFFSPRING WHAT WILL
CONTROL THE EPIDEMIC OF FATHERLESS FAMILIES ARE MORE AVAILABLE FAMILY
PLANNING AND SEX EDUCATION SERVICES 9307120117 930712 POLICE RETURN TO
WORK IN NEW ORLEANS BUT WITHOUT CURE FOR CAUSES OF SICKOUT  BY
SHAKIRA HIGHTOWER STAFF REPORTER OF THE WALL STREET JOURNAL

NEW ORLEANS SURVIVED ITS POLICE DEPARTMENT'S LATEST BLUE FLU EPIDEMIC
UNSCATHED BUT THE ISSUES THAT LED TO LAST WEEK'S TWODAY SICKOUT REMAIN
UNRESOLVED

ABOUT 500 OF THE LOUISIANA CITY'S 1500 POLICE OFFICERS PARTICIPATED IN
PROTESTING BUDGET CUTS THAT ELIMINATED OVERTIME PAY AND THE CITY'S CONTINUED
REFUSAL TO LET NEW ORLEANS POLICE FORM A UNION ON AT LEAST ONE SHIFT 70
OF THE ASSIGNED OFFICERS STAYED HOME SAID SGT RON CANNATELLA PRESIDENT OF
THE POLICE ASSOCIATION OF NEW ORLEANS THE ASSOCIATION IS A NONUNION
POLICEOFFICERS INTEREST GROUP SGT CANNATELLA SAID

SGT BARRY FLETCHER A SPOKESMAN FOR THE NEW ORLEANS POLICE DEPARTMENT PUT
THE ABSENCES AT MORE THAN 50 THEY CALLED IN SAYING THEY'RE NAUSEOUS HE
SAID THE CITY FILLED STAFFING GAPS WITH STATE TROOPERS OFFDUTY POLICE AND
POLICE MANAGERS THERE'S A GOOD POSSIBILITY THAT MORE POLICE OFFICERS WERE
ON PATROL THAN USUAL SGT FLETCHER SAID BECAUSE THE DEPARTMENT HEARD
ABOUT THE POSSIBILITY OF A SICKOUT WEEKS AGO WHEN PAYROLL WAS ALTERED
CITIZENS WERE NOT AT RISK

THE SICKOUT WAS THE LATEST IN A 20YEAR HISTORY OF SUCH PROTESTS BY NEW
ORLEANS POLICE SGT CANNATELLA SAID PAY IS OFTEN THE ISSUE BUT SO IS THE
RIGHT TO COLLECTIVELY BARGAIN OTHER PUBLIC SAFETY DEPARTMENTS HAVE IT BUT
WE DON'T SGT CANNATELLA SAYS WE HAVE COLLECTIVE BEGGING

THE ASSOCIATION MET WITH MAYOR SIDNEY BARTHELEMY JULY 2 TO GET A LASTING
RESOLUTION SGT CANNATELLA SAID THE MAYOR PROPOSED HAVING THE CITY
COUNCIL VOTE JULY 15 ON RESTORING OVERTIME PAY

WE CAME OUT OF THE MEETING WITH THE MAYOR WITH A BIG ZIP SGT
CANNATELLA SAID AND SO THE POLICE OFFICERS PROCEEDED WITH THE SICKOUT
MAYOR BARTHELEMY WAS IN EUROPE ON VACATION LAST WEEK AND NOT AVAILABLE TO
COMMENT HIS OFFICE REFERRED CALLS TO POLICE HEADQUARTERS THE ASSOCIATION
ENDED ITS SICKOUT AFTER ITS ATTORNEY MET WITH CITY OFFICIALS AND OBTAINED A
PROMISE OF ANOTHER MEETING WITH THE MAYOR WHEN HE RETURNS EAST ST LOUIS
LOS ANGELES OTHER CITIES HAVE BATTLED BOUTS OF BLUE FLU RECENTLY EAST ST
LOUIS MO POLICE HELD A FOURDAY SICKOUT OVER MEMORIAL DAY WEEKEND TO
PROTEST SALARY LEVELS AND IN LOS ANGELES THE POLICE OFFICERS UNION WAS
CONSIDERING A PROTEST INCLUDING A POSSIBLE SICKOUT BECAUSE OF STALLED
CONTRACT NEGOTIATIONS BUT IN MIDJUNE RICHARD RIORDAN CONVINCED UNION
LEADERS TO HOLD OFF GIVING HIM A CHANCE TO SOLVE THE CONTRACT SITUATION
AFTER HE TOOK OFFICE AS MAYOR JULY 1

IN NEW ORLEANS CITY OFFICIALS SAID THAT THERE ARE MUCH WORSE TIMES TO FACE
A POLICE SICKOUT SUCH AS DURING THE CITY'S FAMOUS MARDI GRAS CELEBRATION
OR ITS JAZZ FESTIVAL BUT TOURISM IS USUALLY SLOW DURING THIS TIME OF THE
YEAR ACCORDING TO NEW ORLEANS TOURISM COMMISSION DIRECTOR BEVERLY GIANNA
9307120116 930712 BUSINESS BRIEFS

SOUTHERN CALIFORNIA EDISON CO A UNIT OF SCECORP SAID IT IS CUTTING ITS
WORK FORCE BY THE EQUIVALENT OF ABOUT 400 FULLTIME EMPLOYEES THIS YEAR

CHESHIRE FINANCIAL CORP ACQUIRED THE REMAINING 524 OF THE OUTSTANDING
SHARES OF COLONIAL MORTGAGE INC FOR 51 MILLION

AZTAR CORP COMPLETED ITS TENDER OFFER FOR THE LIMITED PARTNERSHIP INTERESTS
OF AMBASSADOR REAL ESTATE INVESTORS LP FOR ABOUT 58 MILLION IN CASH
9307120115 930712 WHO'S NEWS ALLIANCE CAPITAL MANAGEMENT LP

ALLIANCE CAPITAL MANAGEMENT LP NEW YORK RONALD M WHITEHILL 55 YEARS
OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF CASH MANAGEMENT SERVICES A NEW
POSITION AT THIS GLOBAL INVESTMENT ADVISER MR WHITEHILL HAD BEEN SENIOR
VICE PRESIDENT AND MANAGING DIRECTOR OF RESERVE FUND A NEW YORKBASED MONEY
MARKET FUND ALLIANCE CAPITAL HAS 66 BILLION IN ASSETS UNDER MANAGEMENT
9307120114 930712 OTC FOCUS STARBUCKS BID TO ISSUE CONVERTIBLE NOTES 
COMES AS STOCK MAY BE NEARING PEAK  BY JEFF D OPDYKE STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK HIGHFLYING STARBUCKS PLANS TO RAISE MORE CASH WITH A CONVERTIBLE
NOTE OFFERING EVEN AS ITS STOCK PRICE MAY BE NEARING ITS PEAK

EARLIER THIS MONTH THE SEATTLE SPECIALTY COFFEE RETAILER FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION TO ISSUE 70 MILLION OF SUBORDINATED
CONVERTIBLE NOTES DUE 2003 ANALYSTS SAY THE OFFERING MAY BE A SAVVY MOVE
FOR THE COMPANY BUT IT MIGHT NOT BE SO GOOD FOR INVESTORS

ANALYSTS ESTIMATE THAT THE CONVERTIBLE NOTES WILL YIELD ABOUT 55 OR 6 AND
THEY RECKON THE BONDS WILL BE CONVERTIBLE AT A 20 TO 25 PREMIUM TO THE
MARKET PRICE THE DAY THE DEBT IS ISSUED STARBUCKS CLOSED FRIDAY AT 5175
DOWN 1625

BUT CAN STARBUCKS'S STOCK CLIMB AN ADDITIONAL 20 WITH A HEADY
PRICEEARNINGS RATIO OF 117 BASED ON FRIDAY'S PRICE MANY INVESTORS ARE
SKEPTICAL BUYING A CONVERTIBLE NOTE IN HOPES THE STOCK CAN REACH THOSE
LOFTY HEIGHTS IS JUST TOO BIG A GAMBLE THEY SAY

GOURMET COFFEE IS AWFULLY TRENDY SAYS NICK CALAMOS RESEARCH DIRECTOR AT
CALAMOS ASSET MANAGEMENT IN CHICAGO WHICH MANAGES MORE THAN 700 MILLION IN
CONVERTIBLE BONDS SAMESTORE SALES ARE DRIVING THIS COMPANY RIGHT NOW BUT
I'M NOT CERTAIN THAT CONSUMERS' TASTE FOR 3ACUP CAPPUCCINO WON'T CHANGE

IF THAT HAPPENS AND EARNINGS TUMBLE NOBODY'S GOING TO HAVE ANY REASON TO
CONVERT THEIR BONDS SAYS THOMAS M SEAY FIXEDINCOME MANAGER AT LEXINGTON
MANAGEMENT CORP IN THAT CASE YOU JUST SIT ON IT FOR 10 YEARS COLLECTING
YOUR 55 OR SO AND WAIT TILL YOU CAN CASH OUT FOR PAR

CERTAINLY STARBUCKS'S GROWTH SO FAR HAS BEEN IMPRESSIVE SAMESTORE SALES AT
STARBUCKS HAVE AVERAGED ABOUT 20 YEARTOYEAR INCREASES IN EACH OF THE LAST
THREE MONTHS COMPANYWIDE MONTHLY SALES HAVE CLIMBED 70 TO 75 DURING THE
SAME PERIOD COMPARED WITH YEAREARLIER LEVELS THE STOCK HAS BEEN TRADING
NEAR ITS RECORD HIGH OF 54 ALTHOUGH IT STUMBLED FRIDAY AFTER PAINEWEBBER
INITIATED COVERAGE WITH A NEUTRAL RATING

IN ITS SEC FILING STARBUCKS ACKNOWLEDGES THAT THE COMPETITION IN THE
GOURMET COFFEE ARENA IS HEATING UP NOT ONLY ARE GLORIA JEANS COFFEE BEAN
CORP BASED IN ILLINOIS AND CANADA'S SECOND CUP LTD STRIVING FOR MARKET
SHARE BUT GROCERY STORES ALSO ARE GETTING IN THE GAME THE COMPANY NOTES
THAT FOOD GIANTS SUCH AS KRAFT GENERAL FOODS PROCTER & GAMBLE AND NESTLE
ARE DISTRIBUTING PREMIUM COFFEE PRODUCTS

IN ADDITION STARBUCKS'S MANAGEMENT NOTES IN THE FILING THAT ALTHOUGH COFFEE
BEAN PRICES ARE LOW THE INTERNATIONAL COFFEE ORGANIZATION CONTINUES TO TRY
TO REIMPOSE PRODUCTION QUOTAS TO INCREASE PRICES IF SUCCESSFUL SUCH A MOVE
COULD HAVE SIGNIFICANT ADVERSE IMPACTS ON THE COMPANY'S PROFITABILITY

ANOTHER RED FLAG ON THE OFFERING IS THE YET UNNAMED STARBUCKS SHAREHOLDERS
WHO ARE SELLING AS MANY AS 481100 SHARES RECEIVED IN TWO PRIVATE PLACEMENTS
BEFORE THE COMPANY'S 1992 INITIAL PUBLIC OFFERING AS PART OF THE PRIVATE
PLACEMENT ACCORDS THOSE SHAREHOLDERS WHO PAID 9 OR LESS A SHARE HAVEN'T
BEEN ABLE TO SELL THEIR HOLDINGS UNTIL NOW THE COMPANY HAS A TOTAL OF 144
MILLION SHARES OUTSTANDING

NOT ONLY ARE INVESTORS WARY OF THE CONVERTIBLE OFFERING THEY'RE ALSO
BECOMING INCREASINGLY SKITTISH ABOUT THE STOCK

I CAN'T RECOMMEND BUYING THE STOCK SAYS J CARLO CANNELL WHO HEADS A SAN
FRANCISCO MONEY MANAGEMENT CONCERN THAT BEARS HIS NAME AND WHO ONCE TRACKED
STARBUCKS FOR DAKIN SECURITIES CORP THE COMPANY HAS GREAT MANAGEMENT
THEY'VE DEMONSTRATED ABOVE AVERAGE ACUMEN IN EXPANDING AND THERE IS NO
INDICATION THAT THEY ARE DOING ANYTHING BUT A FANTASTIC JOB BUT YOU'VE GOT
AN EXTRAORDINARILY EXPENSIVE STOCK RIGHT NOW THAT DOES NOT DESERVE THE
VALUATION WALL STREET HAS GIVEN IT

THE NASDAQ COMPOSITE INDEX ROSE 310 OR 044 TO 70581 ADVANCING ISSUES
OUTNUMBERED DECLINERS 1446 TO 1264 ON TOTAL VOLUME OF 2137 MILLION
SHARES DOWN FROM THURSDAY'S 2547 MILLION

REGENERON CLIMBED 1 TO 18 REGENERON AND AMGEN ARE CLOSE TO FILING AN
INVESTIGATIONAL NEW DRUG APPLICATION OR IND TO BEGIN A PHASE I HUMAN TRIAL
OF A NERVEGROWTH DRUG BRAINDERIVED NEUTROPHIC FACTOR OR BDNF TO TREAT
LOU GEHRIG'S DISEASE ACCORDING TO DILLON READ & CO AMGEN ROSE 1/4 TO 35
3/4 

UNIVERSAL HOSPITAL SERVICES DROPPED 2 3/4 TO 6 1/4 AFTER TRADING HOURS ON
THURSDAY THE PROVIDER OF MOVABLE MEDICAL EQUIPMENT TO HOSPITALS SAID IT
EXPECTS SECONDQUARTER EARNINGS IN THE RANGE OF EIGHT CENTS TO 11 CENTS A
SHARE FALLING SHORT OF ANALYSTS' EXPECTATIONS OF 17 CENTS A SHARE A YEAR
EARLIER THE COMPANY EARNED 16 CENTS A SHARE 9307120113 930712 HEALTH 
SEVERAL DRUGS FOR SHINGLES ARE IN TRIALS  BY AMAL KUMAR NAJ 
STAFF REPORTER OF THE WALL STREET JOURNAL

ANYONE WHO HAD CHICKEN POX AS A CHILD MAY VERY WELL WAKE UP SOME MORNING
AFTER THEY PASS AGE 50 SUFFERING CHILLS FEVER AND MALAISE WITHIN THREE TO
FOUR DAYS THE SKIN WILL ERUPT IN RASHES AND TINY BLISTERS AND WORST OF ALL
ACUTE PAIN WILL BEGIN SHOOTING OUT FROM NERVE ENDINGS

THE PAIN MARKS A DISEASE THAT MOST PEOPLE LONG HAVE HEARD ABOUT BUT UNTIL
THEY EXPERIENCE IT FOR THEMSELVES HAVE FAILED TO REALIZE HOW EXCRUCIATING
IT CAN BE THE DISEASE IS SHINGLES CAUSED BY THE REACTIVATION OF THE
CHICKEN POX VIRUS

WITHIN THE NEXT FEW MONTHS SHINGLES WILL BEGIN MAKING NEWS FOR THE FIRST
TIME IN THE MILLENNIA THAT IT HAS AFFLICTED HUMANS RESEARCHERS WILL BE
GETTING THE RESULTS OF CLINICAL TRIALS OF A HANDFUL OF ANTIVIRAL DRUGS THAT
THEY SAY WILL BE THE FIRST POTENT TREATMENTS DEVELOPED FOR SHINGLES

THESE DRUGS SHOULD REDUCE THE SEVERITY OF SHINGLES SAYS STEPHEN STRAUS
THE CHIEF OF CLINICAL INVESTIGATIONS AT THE NATIONAL INSTITUTES OF HEALTH'S
ALLERGY AND INFECTIOUS DISEASES UNIT IF ALL GOES AS EXPECTED SOME OF THE
DRUGS WILL BE AVAILABLE WITHIN THE NEXT TWO YEARS

PRESSURES TO DEVELOP SUCH THERAPIES IS BUILDING THE POPULATION OF PEOPLE
OVER 50 IS INCREASING RAPIDLY AS IS THEIR LONGEVITY THESE ARE THE PEOPLE
WHO ARE MOST VULNERABLE TO THE DISEASE BECAUSE THEIR CELLULAR IMMUNITY IS
WEAKENING WITH AGE THE WEAKENED IMMUNE DEFENSE ALLOWS THE VIRUS TO SPRING
INTO ACTION AFTER HAVING BEEN SUPPRESSED SINCE THE CHILDHOOD BOUT WITH THE
CHICKEN POX

BUT THERE ALSO ARE EMERGING NEW GROUPS OF PEOPLE VULNERABLE TO SHINGLES
KNOWN MEDICALLY AS ZOSTER ONE IS PEOPLE WITH AIDS IN WHOM THE IMMUNE SYSTEM
HAS DETERIORATED

VZV RESEARCH FOUNDATION A NEW YORK FOUNDATION CREATED TO FURTHER SHINGLES
RESEARCH ESTIMATES THAT EVERY YEAR AS MANY AS 850000 AMERICANS GET
SHINGLES THE FOUNDATION IS ESPECIALLY CONCERNED ABOUT THE 15 OF THE
SHINGLES SUFFERERS WHO END UP WITH EXTREME NERVE DAMAGE THE NERVE DAMAGE
RESULTS IN A PERSISTENT SHOOTING OR BURNING PAIN IN THE AREAS SERVED BY THE
NERVES A CONDITION KNOWN AS POSTHERPETIC NEURALGIA

IT'S ONE OF THE LEADING CAUSES OF SUICIDE AMONG PEOPLE OVER 70 SAYS
RICHARD PERKIN WHO FOUNDED THE VZV RESEARCH FOUNDATION AFTER HIS MOTHER
DEVELOPED THE NEURALGIA THE FOUNDATION'S INITIALS STAND FOR
VARICELLAZOSTER VIRUS THE NAME OF THE VIRUS THAT CAUSES BOTH CHICKEN POX
AND SHINGLES

ALTHOUGH ALMOST AS MANY PEOPLE GET SHINGLES AS CANCER EVERY YEAR THE
DISEASE LONG HAS BEEN NEGLECTED BY MEDICAL RESEARCHERS BECAUSE IT ISN'T
LIFETHREATENING IN HEALTHY INDIVIDUALS OTHER THAN ANALGESICS TO RELIEVE
THE PAIN THERE HAS NEVER BEEN AN EFFECTIVE TREATMENT DEVELOPED FOR
SHINGLES

AN UNLIKELY PAINKILLER THAT HAS GAINED SOME ATTENTION RECENTLY IS A TOPICAL
CREAM WHOSE ACTIVE INGREDIENT IS THE CHEMICAL THAT MAKES CHILIES TASTE HOT
CAPSAICIN THE CHEMICAL HAS THE UNIQUE ABILITY TO ATTRACT AND DESTROY THE
CHEMICAL THAT TRANSMITS PAIN IMPULSES THROUGH THE NERVES LAWRENCE
STANBERRY PROFESSOR OF PEDIATRICS AT THE UNIVERSITY OF CINCINNATI WHO HAS
DONE CLINICAL TRIALS WITH CAPSAICIN SAYS THE CHEMICAL ALSO INTERRUPTS THE
MOVEMENT OF THE VIRUS THROUGH THE NERVES THEREBY LIMITING THE SPREAD OF
THE DISEASE

GENDERM CORP MARKETS SUCH A CREAM CALLED ZOSTRIX AND A CREAM MORE POTENT
IN BLOCKING PAIN IS IN CLINICAL STUDY WHICH IS EXPECTED TO BE COMPLETED BY
1995 OR 1996 SAYS JOEL BERNSTEIN GENDERM CHAIRMAN

THE POSSIBILITY THAT DRUGS COULD BE DEVELOPED SPECIFICALLY FOR SHINGLES
FIRST AROSE IN 1990 WITH THE MARKETING OF THE ANTIVIRAL DRUG ACYCLOVIR SOLD
AS ZOVIRAX BY WELLCOME PLC'S BURROUGHS WELLCOME CO ACYCLOVIR WAS FOUND TO
PREVENT THE REPLICATION OF THE ACTIVATED VIRUS AND THUS SHORTEN THE DURATION
AND SEVERITY OF THE INFECTION BUT IT DOESN'T NECESSARILY ARREST THE NEXT
STAGE THE DREADED CHRONIC PAIN OR THE POSTHERPETIC NEURALGIA

NEVERTHELESS THE MODEST SUCCESS OF THE DRUG IS NOW PAVING THE WAY FOR SOME
OF THE NEW AND BETTER DRUGS ONE OF THEM VALACYCLOVIR IS A MODIFICATION OF
BURROUGHS WELLCOME'S ACYCLOVIR THE ADVANTAGE OF THE NEW DRUG IS THAT MUCH
MORE OF IT GETS INTO THE BLOOD STREAM THAN ACYCLOVIR ASSUMING EVERYTHING
GOES ON SCHEDULE SAYS DAVID BARRY SENIOR VICE PRESIDENT OF RESEARCH AND
DEVELOPMENT AT BURROUGHS WELLCOME VALACYCLOVIR WILL BE APPLIED FOR FOOD
AND DRUG ADMINISTRATION APPROVAL NEXT YEAR

TWO OTHER POTENT DRUGS FAMACYCLOVIR FOR ORAL AND PENACYCLOVIR FOR
INJECTION ARE BEING DEVELOPED BY SMITHKLINE BEECHAM

BUT THE MORE EXCITING DRUGS ARE BRISTOLMYERS SQUIBB CO'S BVARAU AND
A BURROUGHS WELLCOME DRUG THAT IS CURRENTLY IDENTIFIED ONLY BY A CODE NAME
BW882 SAYS RICHARD WHITLEY A PROFESSOR OF PEDIATRICS AT THE UNIVERSITY
OF ALABAMA AT BIRMINGHAM BOTH ARE IN CLINICAL TRIALS DR WHITLEY WHO IS
AMONG THE RESEARCHERS INVOLVED IN THE NIHSPONSORED TRIALS OF BOTH DRUGS
SAYS OF BVARAU I STRONGLY BELIEVE THAT THIS IS THE MOST POTENT DRUG YET
DISCOVERED TO TREAT SHINGLES

HOWEVER THE ANTIVIRAL DRUGS AREN'T THE FINAL ANSWER BY THE TIME THE DISEASE
BREAKS OUT IN A RASH ON THE SKIN THE VARICELLAZOSTER VIRUS ALREADY HAS
BEEN SPREADING FOR TWO TO THREE DAYS WITHIN THE NERVOUS SYSTEM AND TRAVELING
WITHIN THE NERVES OF THE SKIN ANTIVIRAL DRUGS HAVE LITTLE OR NO EFFECT ON
THE INCIDENCE OF POSTHERPETIC NEURALGIA SAYS MICHAEL OXMAN AN INFECTIOUS
DISEASE SPECIALIST AT THE UNIVERSITY OF CALIFORNIA IN SAN DIEGO THE DIE IS
CAST BEFORE THE TREATMENT IS STARTED HE SAYS

RESEARCHERS THUS THINK THAT THE MOST POTENT ARSENAL AGAINST SHINGLES WOULD
BE A VACCINE THAT WOULD PREVENT BOTH CHICKEN POX AND SHINGLES SUCH A
VACCINE HAS ALREADY BEEN DEVELOPED AND IS AVAILABLE IN JAPAN IN MAY MERCK
& CO FILED FOR FDA APPROVAL FOR A SIMILAR VACCINE WE HOPE TO BE MARKETING
IT BY THE END OF THE YEAR SAYS JO WHITE SENIOR DIRECTOR CLINICAL
RESEARCH AT MERCK

MERCK PLANS TO MARKET THE VACCINE ONLY AS A PREVENTIVE FOR CHICKEN POX BUT
NOT FOR SHINGLES BUT A GROUP OF RESEARCHERS HAVE SHOWN IN A SMALL CLINICAL
TRIAL THAT THE VACCINE CAN SHARPLY RAISE THE CELLULAR IMMUNITY OF THE
ELDERLY THAT STUDY STARTED IN 1988 INVOLVES 400 PEOPLE WHO HAD CHICKEN
POX BUT NEVER HAD SHINGLES

MYRON LEVIN PROFESSOR OF PEDIATRICS AT THE UNIVERSITY OF COLORADO AND ONE
OF THE RESEARCHERS SAYS RESULTS INVOLVING 202 OF THE PEOPLE AGED 55 TO 87
SHOW THAT IN 85 OF THEM THE VACCINE BOOSTED THEIR IMMUNITY TO SHINGLES TO
THE LEVEL OF 40 YEAR OLDS AS THE NEXT STEP HE SAYS A CLINICAL TRIAL
INVOLVING 30000 ELDERLY PEOPLE IS BEING ORGANIZED TO DETERMINE WHETHER THE
VACCINE SIGNIFICANTLY REDUCES THE FREQUENCY OF SHINGLES 9307120112 930712
NORTHWEST SETS TENTATIVE PACT WITH MACHINISTS  REVISED LABOR
CONCESSIONS COULD ALLOW THE CARRIER TO AVOID BANKRUPTCY  BY
ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL

NORTHWEST AIRLINES AND THE MACHINISTS UNION REACHED A TENTATIVE AGREEMENT ON
A REVISED PACKAGE OF LABOR CONCESSIONS INTENDED TO SAVE 346 MILLION OVER
THREE YEARS AND KEEP THE CARRIER OUT OF BANKRUPTCYLAW PROTECTION

THE INTERNATIONAL ASSOCIATION OF MACHINISTS ALSO TOOK STEPS TO EXPEDITE A
VOTE BY ITS 23000 MEMBERS AT THE AIRLINE AND TO AVOID MISTAKES MADE IN
JUNE WHEN MEMBERS SHOCKED THEIR LEADERS AND THE AIRLINE BY OVERWHELMINGLY
REJECTING A TENTATIVE PACT

BECAUSE THE PILOTS UNION AGREED TO CONCESSIONS A WEEK AGO AND THE FLIGHT
ATTENDANTS REPRESENTED BY THE TEAMSTERS UNION ARE EXPECTED TO APPROVE THEIR
PACKAGE THE VOTE BY THE MACHINISTS IS SEEN AS THE KEY TO KEEPING THE ST
PAUL MINN CARRIER OUT OF BANKRUPTCYCOURT PROTECTION

AN INDIVIDUAL FAMILIAR WITH THE COMPANY'S PLANS SAID NORTHWEST A UNIT OF
CLOSELY HELD WINGS HOLDINGS INC WOULD FILE FOR PROTECTION UNDER CHAPTER 11
OF THE US BANKRUPTCY CODE ALMOST IMMEDIATELY IF THE MACHINISTS REJECT
THIS LATEST PROPOSED DEAL

THE AIRLINE HAS LOST MONEY ALMOST FROM THE TIME OF ITS 365 BILLION
LEVERAGED BUYOUT LED IN 1989 BY ALFRED CHECCHI AND GARY WILSON NOW
COCHAIRMEN BUT NORTHWEST CONTENDS THE LABOR CONCESSIONS PLUS PUSHING
BACK PAYMENTS ON ITS DEBT WILL BE ENOUGH TO ENSURE ITS SURVIVAL DESPITE
DIFFICULT INDUSTRY CONDITIONS

NORTHWEST OFFICIALS SAID YESTERDAY THAT THE AGREEMENT WITH THE MACHINISTS
DOESN'T CHANGE THE PACKAGE UNDER WHICH ALL ITS EMPLOYEES WOULD GIVE UP 886
MILLION OVER THREE YEARS IN RETURN FOR AS MUCH AS 375 OF THE COMPANY'S
STOCK OR A PAYBACK OF THE CONCESSIONS PLUS INTEREST WITHIN 10 YEARS

THE MACHINISTS' AGREEMENT CONCLUDED OVER THE WEEKEND AFTER SEVERAL DAYS OF
TALKS IN WASHINGTON CONTAINS SEVERAL PROVISIONS INTENDED TO ENTICE MEMBERS
TO REVERSE THEIR NO VOTES THE UNION WHICH REPRESENTS GROUND PERSONNEL
IS BY FAR THE LARGEST AT THE AIRLINE

PEOPLE INVOLVED IN THE TALKS SAID CHANGES INCLUDE AN EARLYRETIREMENT
PROGRAM CHANGES IN THE PENSION PLAN TO ALLOW BENEFITS TO ACCRUE FOR PAST
STRIKES OR FURLOUGHS AN ENHANCED FREE TRAVEL PROGRAM FOR EMPLOYEES'
FAMILIES AND A MEASURE GIVING THE UNION A VOICE WHEN THE COMPANY WANTS TO
GIVE MACHINISTS' WORK TO OUTSIDE CONTRACTORS THE COMPANY SAID THE
IMPROVEMENTS WILL ALSO BE OFFERED TO THE UNIONS REPRESENTING THE PILOTS AND
FLIGHT ATTENDANTS

ANOTHER CHANGE REDUCING THE NUMBER OF VACATION DAYS GIVEN UP IN EACH OF
THE THREE YEARS TO TWO DAYS FROM FOUR COULD COST THE COMPANY 20 MILLION
TO MAKE UP FOR THAT THE MACHINISTS AGREED TO EXTEND THEIR AVERAGE 12 WAGE
CUTS TO 38 MONTHS FROM 36

I THINK OUR MEMBERS ARE GOING TO RECONSIDER THIS AGREEMENT FAVORABLY SAID
JOHN PETERPAUL WHO AS THE GENERAL VICE PRESIDENT OF THE INTERNATIONAL
ASSOCIATION OF MACHINISTS LED THE UNION IN BOTH ROUNDS OF NEGOTIATIONS

ALTHOUGH THE FORMAL TALKS CAME AFTER US TRANSPORTATION SECRETARY FEDERICO
PENA MET WEDNESDAY WITH BOTH SIDES AN AGREEMENT LIKELY WOULD HAVE COME
WITHOUT HIS HELP HIS INTERVENTION DID HOWEVER ADD A SENSE OF URGENCY THAT
BOTH SIDES HOPE WILL CARRY OVER WHEN MEMBERS VOTE

BUT EVEN THE REVISED AGREEMENT IS LIKELY TO FACE SOME STIFF OPPOSITION FROM
UNION MEMBERS WHO RESENT BOTH THE AIRLINE'S OWNERS AND THEIR OWN LEADER MR
PETERPAUL SOME UNION MEMBERS CLAIM THE POWERFUL MR PETERPAUL IS OUT OF
TOUCH WITH THEIR NEEDS

TO AVOID THE ROLLING REJECTION OF LAST TIME WHEN WORD LEAKED OUT OF
UNFAVORABLE RESULTS IN MINNEAPOLIS ST PAUL AND DETROIT UNION OFFICIALS
PLAN TO CONDUCT THE VOTE ON ONE DAY POSSIBLY AS EARLY AS JULY 23 OR JULY
26

IN LAST MONTH'S FAILED VOTE ONLY A SMALL PERCENTAGE OF MEMBERS SHOWED UP
FOR MEETINGS TO EXPLAIN THE AGREEMENT SOME HAD TO VOTE BEFORE RECEIVING
DETAILS IN THE MAIL TO SPEED THE ARRIVAL THIS TIME THE REVISED AGREEMENT
WILL BE SENT FROM MINNEAPOLIS INSTEAD OF WASHINGTON

COMPANY AND UNION OFFICIALS BELIEVE THEY NOW HAVE A MUCH GREATER CHANCE OF
APPROVAL BECAUSE THE REALITY OF A POSSIBLE BANKRUPTCYLAW FILING HAS SET IN
INDEED BOTH SIDES SAY MEMBERS HAVE BEEN ASKING THEM FOR A CHANCE TO VOTE
AGAIN 9307120111 930712 INTERNATIONAL  NUCLEAR ARMS TOKYO
HESITATES TO SAY NEVER'  BY JACOB M SCHLESINGER STAFF REPORTER
OF THE WALL STREET JOURNAL

TOKYO IS JAPAN THE ONLY NATION ON WHICH AN ATOM BOMB WAS EVER DROPPED
 KEEPING OPEN THE OPTION TO BUILD NUCLEAR WEAPONS THAT STARTLING QUESTION
SURFACED IN TOKYO LAST WEEK AT THE SUMMIT OF THE GROUP OF SEVEN
INDUSTRIALIZED NATIONS

JAPAN HAS LONG RENOUNCED ANY INTENTION TO POSSESS INTRODUCE OR MANUFACTURE
NUCLEAR WEAPONS BUT DURING A DEBATE ON INTERNATIONAL POLITICAL AFFAIRS
JAPANESE OFFICIALS DISSENTED FROM WHAT SEEMED LIKE A ROUTINE PROPOSAL TO
EXTEND INDEFINITELY THE NUCLEAR NONPROLIFERATION TREATY WHEN THE PACT
EXPIRES IN 1995 THE SIX OTHER G7 NATIONS THE US CANADA FRANCE
GERMANY BRITAIN AND ITALY SUPPORTED THE PROPOSAL JAPANESE OFFICIALS SAID

TOKYO DOES SUPPORT EXTENDING THE TREATY WHICH ATTEMPTS TO BLOCK NONNUCLEAR
NATIONS FROM GETTING NUCLEAR WEAPONS AS LONG AS POSSIBLE A FOREIGN
MINISTRY OFFICIAL SAID AT A BRIEFING LAST WEEK AND JAPAN DOES NOT  
CONTEMPLATE THE POSSIBILITY OF POSSESSING NUCLEAR WEAPONS AT ANY STAGE

BUT THE OFFICIAL ADDED AS TO THE QUESTION OF WHETHER THE TREATY SHOULD BE
EXTENDED INDEFINITELY WE HAVE NOT FORMED A FINAL DECISION YET THE
OFFICIAL DIDN'T EXPLAIN AT THE BRIEFING WHY JAPAN OPPOSED AN OPENENDED
EXTENSION OF THE PACT

WE AS A NONNUCLEAR POWER HAVE TO DEPEND ON THE US NUCLEAR CAPABILITY AS
AN ALLIED COUNTRY ANOTHER FOREIGN MINISTRY OFFICIAL EXPLAINED LATER IN AN
INTERVIEW YOU CAN HARDLY IMAGINE THAT THE BILATERAL RELATIONSHIP BETWEEN
JAPAN AND THE US WOULD GO WRONG  BUT IF WE EXCLUDE THE POSSIBILITY
WE HAVE TO SEE THE INTERNATIONAL ENVIRONMENT AS VERY STABLE AND PEACEFUL TO
KEEP THIS KIND OF ASSUMPTION IN OTHER WORDS WORLD INSTABILITY AND A
RUPTURE IN JAPAN'S RELATIONSHIP WITH THE US COULD CAUSE JAPAN TO RETHINK
ITS SECURITY SITUATION

THIS OFFICIAL ALSO REITERATED THAT JAPAN WASN'T CONSIDERING BUILDING NUCLEAR
WEAPONS BUT THE JAPANESE PRESS WAS QUICK TO ASSERT OTHERWISE JAPAN WANTS
TO KEEP THE WAY OPEN FOR NUCLEAR WEAPONS DEVELOPMENT IN THE NEAR FUTURE
THE NIHON KEIZAI SHIMBUN NEWSPAPER SAID IN AN EDITORIAL FRIDAY SOME
GOVERNMENT MEMBERS THINK JAPAN CANNOT TIE ITS HANDS PERMANENTLY OVER SUCH AN
IMPORTANT ISSUE THAT CONCERNS THE COUNTRY'S SECURITY THE MAINICHI SHIMBUN
NEWSPAPER REPORTED

EVEN SPECULATION ABOUT POSSESSING NUCLEAR WEAPONS ILLUSTRATES THE NEW
UNCERTAIN SECURITY ENVIRONMENT SURROUNDING TOKYO NEARBY NORTH KOREA TRIED
TO WITHDRAW FROM THE NONPROLIFERATION TREATY EARLIER THIS YEAR AND IS
WIDELY BELIEVED TO BE DEVELOPING NUCLEAR WEAPONS EVEN THOUGH PRESIDENT
CLINTON AT LAST WEEK'S SUMMIT REAFFIRMED THE US MILITARY COMMITMENT TO
JAPAN AND ASIA MANY JAPANESE FEAR THE US ULTIMATELY WILL SCALE BACK

JAPANESE OFFICIALS SAY THEY ALSO HAVE OTHER REASONS FOR NOT SUPPORTING AN
INDEFINITE EXTENSION OF THE NONPROLIFERATION TREATY MANY JAPANESE WANT
INTERNATIONAL NUCLEAR DISARMAMENT AND ARGUE THAT THE TREATY ESSENTIALLY
ALLOWS CURRENT NUCLEAR STATES TO KEEP THEIR WEAPONS INDEED JAPANESE
ANTINUCLEAR ACTIVISTS RELEASED A STATEMENT CONDEMNING THE G7 LEADERS FOR
SUPPORTING THE TREATY AND URGED SETTING A CLEAR DATE FOR THE NUCLEAR STATES
TO ABANDON THEIR NUCLEAR WEAPONS

IN THE END THE G7 TOOK A POSITION THE JAPANESE GOVERNMENT FEELS
ACCOMMODATES ITS STANCE THE G7 EXPRESSED SUPPORT FOR AN INDEFINITE
EXTENSION OF THE NONPROLIFERATION TREATY AND NUCLEAR ARMS REDUCTION THE
STATEMENT LEFT UNCLEAR WHETHER COUNTRIES WOULD BE COMMITTED TO THE EXTENSION
OF THE TREATY IF SATISFACTORY ARMS REDUCTION DIDN'T TAKE PLACE

A US OFFICIAL SAID THE CLINTON ADMINISTRATION ISN'T WORRIED ABOUT JAPAN'S
POSITION AT THE END OF THE DAY HE SAID THE JAPANESE WILL SUPPORT THE
INDEFINITE EXTENSION OF THE TREATY

HOWEVER THE JAPANESE FOREIGN MINISTRY OFFICIAL NOTED VERY DRASTIC
DISARMAMENT WOULD BE NECESSARY TO GO INTO THE STAGE WHERE JAPAN BINDS ITSELF
TO THE REGIME OF THE NONPROLIFERATION TREATY INDEFINITELY 9307120110
930712 LEISURE & ARTS TELEVISION TALK AND CONSEQUENCES  BY
DOROTHY RABINOWITZ

NO ONE COULD HAVE BEEN SURPRISED THAT THE KILLER WHO RECENTLY SHOT EVERYONE
IN HIS PATH AT A SAN FRANCISCO LAW OFFICE HAD PREPARED A LIST OF ALL THE
TALK SHOWS HE WANTED TO APPEAR ON AFTER HIS SPREE WHICH PROGRAMS WERE ON
THAT LIST ISN'T CLEAR WHAT IS CLEAR IS THAT GIAN LUIGI FERRI HAD HOPES OF
SURVIVING THE CARNAGE AND OF GOING FORTH AFTERWARD TO EXPLAIN HIS MOTIVES
ON NATIONAL TELEVISION IT WAS PERHAPS THE ONLY ASPECT OF HIS HOMICIDAL
GRAND PLAN NOT ENTIRELY ROOTED IN DELUSION

ANYONE ACQUAINTED WITH THE STANDARDS OF THE TALKSHOW WORLD WILL RECOGNIZE
THAT IF IT HAD BEEN LEGALLY POSSIBLE THIS LUNATIC WOULD INDEED HAVE BEEN
SNAPPED UP FOR APPEARANCES AND BEEN TREATED ON TALK TV AS AN HONORED GUEST
LIKE ANY OTHER ONLY MORE SO

BOOKERS PRODUCTION ASSISTANTS AND ASSORTED OTHER BREATHLESS AIDES WOULD
HAVE RUN THEIR GRANDMOTHERS OVER TO LAND THIS STAR WHOSE STORY THEY
WOULD HAVE ASSURED HIM WAS OF THE HIGHEST IMPORTANCE TO THE NATION AND TO
HUMANITY AT LARGE THE DEMENTED MR FERRI WOULD HAVE HAD HIS PICK OF SHOW
HOSTS EAGER TO GIVE HIM THE OPPORTUNITY TO TELL ABOUT THE WORLDWIDE
CONSPIRACY TO POISON HIM WITH MSG AND CHEAT HIM ON REAL ESTATE DEALS

NO ONE WOULD HAVE BEEN MORE EAGER TO WELCOME HIM THAN THE LUMINARIES WHO
PRESIDE OVER MORNING TALK TV IF HE WERE A CONNOISSEUR OF TALK SHOWS AS WE
SUSPECT MR FERRI WAS HE WOULD HAVE KNOWN THAT NO SWEEP THROUGH THE
TALKSHOW CIRCUIT IS COMPLETE WITHOUT AN APPEARANCE ON THE JANE WHITNEY
SHOW OR ON SALLY JESSY RAPHAEL

TALKMONGERS WITH MORE STELLAR STATUS OPRAH SAY OR DONAHUE WOULD
SURELY HAVE GIVEN MR FERRI AMPLE OPPORTUNITY TO AS THEY SAY SHARE HIS
THOUGHTS CONCEIVABLY THEY MIGHT HAVE INTRODUCED OTHER GUESTS WHO ALSO KNEW
THEY WERE BEING SLIPPED MSG BY A RING OF INTERNATIONAL CONSPIRATORS IT IS
AFTER ALL THE BUSINESS OF TALKTV PRODUCERS TO KEEP DISCOVERING FRESH NEW
CATEGORIES OF VICTIMIZATION AND FOUR CASES ARE BETTER THAN ONE BUT
NOWHERE COULD MR FERRI HAVE BEEN CERTAIN OF A WELCOME MORE PATHOLOGICALLY
SINCERE THAN THE ONE HE WOULD HAVE RECEIVED ON THE JANE WHITNEY SHOW

NO LOOK AT TODAY'S POPULAR CULTURE OR RATHER ITS ILLS WOULD BE
COMPLETE WITHOUT CONSIDERING WHAT GOES ON DAILY ON THIS SORT OF MORNING
SHOW AND THE WHITNEY SHOW IS AN EXAMPLE OF THE GENRE AT ITS PUREST IT
WOULD BE NICE TO REPORT THAT THE STAR AND HER PRODUCERS MAKE NO BONES ABOUT
THEIR OBVIOUS DEDICATION TO SEX SENSATION AND GENERAL PRURIENCE NICE BUT
UNTRUE TO THE CONTRARY MS WHITNEY LIKE THE SOMEWHAT HIGHERTONED MS
RAPHAEL IS BRIMFUL OF SOCIAL CONCERN AND SUGGESTIONS THAT THE LURID
SPECTACLES THAT ARE DAILY FARE ON HER SHOW AND THE VOYEURISM SHE CATERS TO
HAVE BEEN ARRANGED FOR THE HIGH PURPOSE OF OUR EDUCATION AND GUIDANCE

SEE THE DEEP FROWN LINES RUT MS WHITNEY'S FOREHEAD AS SHE GRAPPLES WITH THE
LARGE QUESTIONS PRESENTED BY HER GUESTS A RECENT SHOW ASKED SHOULD A
WOMAN POSE NUDE WITH HER MOTHER WELL WHO OF US IS WISE ENOUGH TO SAY

MS WHITNEY DOESN'T PRESUME TO OFFER CONCLUSIONS ON HER OWN BUT SHE IS
CERTAINLY IN THERE HELPING US DIVINE ANSWERS TO THIS AND OTHER SIMILARLY
IMPORTANT QUESTIONS THE TITANIC MENTAL STRUGGLE THE ANALYTIC FERMENT
CAUSING ALL THAT SQUINTING AND FEROCIOUS BROWFURROWING ON HER VISAGE IS
WE ARE GIVEN TO UNDERSTAND FOR US IT IS ALL THIS EFFORT TO HELP US
UNDERSTAND AND TOLERATE AND COPE WITH SIMILAR PROBLEMS WHEN THEY CONFRONT
US

US NOW THIS IS A QUESTION IT WOULD BE INTERESTING TO KNOW JUST HOW MANY OF
THE MEN WOMEN CHILDREN AND HOUSE PETS SITTING AROUND WATCHING ARE LIKELY
TO NEED HELP WITH THE KIND OF PROBLEMS AIRED ON THE WHITNEY SHOW MOST OF
THE TIME THESE HAVE TO DO EITHER WITH SEX CHANGES CROSSDRESSING
PORNOGRAPHY OF ONE KIND OR ANOTHER OR SLIGHTLY MORE MUNDANE BUT STILL
HARDLY MAINSTREAM CONCERNS SUCH AS THAT OF THE STARCROSSED COUPLE WHO
RECENTLY HAD AN ONAIR SPAT ABOUT THE HUSBAND'S BOYFRIEND

INDEED THE SHOW'S STANDARDS OF AIRWORTHINESS ARE SUCH THAT ONE WONDERS IF
MR FERRI COULD ACTUALLY HAVE SUCCEEDED IN GETTING HIMSELF BOOKED ON IT HE
ONLY KILLED EIGHT PEOPLE AFTER ALL THERE WAS MOREOVER NO HINT OF SEX
ANYWHERE IN HIS STORY

A RECENT SHOW CONCERNED PEOPLE HARBORING DEEP SECRETS WHICH THEY WOULD NOW
CONFIDE ONE WAS A CERTAIN MICHELLE FORMERLY A NAVY MAN WHO DECIDED THAT
THE WHITNEY SHOW WAS THE IDEAL PLACE TO TELL HIS MOTHER HE'D BECOME A
WOMAN AZUREEYED IN TARTAN SKIRT AND SMARTLY DANGLING EARRINGS MICHELLE
HELD HIS OR HER MOTHER'S HANDS AS THAT WORTHY MATRON VOWED IN A FALTERING
VOICE TO LOVE HER CHILD NO MATTER WHAT MICHELLE WENT ON TO HOPE ALOUD THAT
SHE COULD ACCEPT THE FACT THAT HER FORMER SON WAS NOW A WOMAN THIS THE
MOTHER WHISPERED HOARSELY WOULD TAKE SOME TIME

MS WHITNEY NEXT INTRODUCED A DAUGHTER WHO ALSO HAD SECRETS TO TELL HER
MOTHER AND OF COURSE THE WORLD THE DAUGHTER ANDREA CONFESSED THAT
SHE SPENT HER NIGHTS WHILE AWAY AT COLLEGE WORKING AS A STRIPPER ANDREA'S
MOTHER IN TURN AVERRED THAT SHE LOVED HER DAUGHTER NO MATTER WHAT AND
WENT ON SOBERLY TO INFORM US WITH THAT MODESTY CHARACTERISTIC OF THOSE
GIVEN TO SHARING THEIR SECRETS WITH THE UNIVERSE THAT ANDREA IS JUST
LIKE ME SHE IS BASICALLY VERY GOOD THE NEXT SHOWS CONCERNED THEMSELVES
WITH AMY FISHER WITH SWINGERS WHO LOVE SEX AND DON'T WORRY ABOUT CONDOMS
WITH CHILDSEXABUSE ACCUSATIONS AND WITH THE DIFFERENCE BETWEEN
PORNOGRAPHY AND ADULT FILMS

THE TOPICS ON SALLY JESSY RAPHAEL ARE SOMEWHAT MORE VARIED BUT THE
PRINCIPLES OF THE TWO SHOWS ARE THE SAME MS RAPHAEL IS BY NOW AN OLD HAND
AT THE ART OF PRESENTING HERSELF AS A THERAPIST OF SORTS DELIVERING WISDOM
FROM THE PSYCHOSEXUAL MUCK WHAT SHOWS LIKE THESE DELIVER IS OF COURSE NOT
WISDOM WHAT THEY OFFER DAILY IS A SQUALID PORTRAIT OF OUR LIFE AND TIMES 
ONE IN WHICH SOCIAL DEVIANTS AND DEVIANCY ITSELF TAKE PRECEDENCE OVER ALL
ELSE THE MOST DISTURBED THE ALIENATED AND GROTESQUE THE FRINGE QUARTERS
OF SOCIETY AND THEIR PREOCCUPATIONS OCCUPY STAGE CENTER THE AUTHORITY AND
PREMISES OF THE SANE WORLD ARE BANISHED HARDLY A DAY GOES BY THAT SOME OAF
IN THE STUDIO AUDIENCE DOESN'T STAND UP TO CHEER SOME GUEST SUING FOR THE
RIGHT TO WEAR HIS WIFE'S DRESSES WHILE TEACHING SUNDAY SCHOOL OR TO PURSUE
SOME SIMILAR OBSESSION AND TO CONGRATULATE HIM FOR HAVING THE COURAGE TO
DO HIS OWN THING

THE WORLD THE TALK SHOWS REFLECT MAY NOT HAVE MUCH TO DO WITH THE REALITY OF
THE ONE THEIR VIEWERS INHABIT BUT THE SHOWS HAVE AND ARE HAVING THEIR
CONSEQUENCESNOT LEAST IN THE WAY THEY ARE HELPING NORMALIZE PATHOLOGY GIAN
LUIGI FERRI KNEW WHAT HE WAS ABOUT WHEN HE CHOSE THEM AS THE COURT OF FIRST
RESORT 9307120109 930712 LETTERS TO THE EDITOR WHO'S DESTINY IS IT
ANYWAY

IN HIS JUNE 17 EDITORIAL PAGE ARTICLE GINSBURG'S TROUBLING CONSTITUTION
ROGER PILON DENIGRATES JUDGE GINSBURG'S VIEWS ON ABORTION AND ROE V WADE AS
AN INTERESTING SIDEBAR HE ASSERTS THAT HER GENDERBASED DISCRIMINATION
RATIONALE MISSES THE POINT IT IS MR PILON HOWEVER WHO MISSES THE
CONSTITUTIONAL POINT

HE STATES THAT WE NEED A RETURN TO THE KIND OF FIRST PRINCIPLES 
SUBSTANTIVE PRINCIPLES THAT CHARACTERIZED OUR FOUNDING DEBATES LIFE
LIBERTY PROPERTY AND CONTRACT WERE THE BEDROCK OF THOSE PRINCIPLES

IN THIS RESPECT MR PILON IS CORRECT LIBERTY FREEDOM FROM UNDUE
GOVERNMENT INTERFERENCE AND A PERSONAL RIGHT OF PRIVACY ARE AT THE HEART
OF THESE SUBSTANTIVE PRINCIPLES JUDGE GINSBURG'S GENDERBASED ANALYSIS IS
SIMPLY AN EXTENSION OF A WOMAN'S RIGHT TO PRIVACY UNTIL A FETUS BECOMES A
PERSON BY BIRTH IT IS PART OF A WOMAN'S BODY IT IS THE WOMAN CARRYING THIS
FETUS THAT SHOULD DETERMINE HER AND THEREFORE ITS DESTINY NOT THE
GOVERNMENT 9307120107 930712 CHINESE BANK PLANS A 120 MILLION ISSUE 
OF BONDS IN EUROPE  SPECIAL TO THE WALL STREET JOURNAL

HONG KONG PEOPLE'S CONSTRUCTION BANK OF CHINA PLANS AN ISSUE IN EUROPE OF
120 MILLION OF FLOATINGRATE BONDS TO BE LISTED IN SINGAPORE AND LONDON
THE CHINESE NEWS SERVICE REPORTED

THE BANK SIGNED THE AGREEMENT LAST WEEK IN LONDON WITH A SYNDICATE OF 27
INTERNATIONAL BANKS AND SECURITIES HOUSES FROM THE US THE UNITED KINGDOM
EUROPE AND ASIA THE REPORT SAID

OF THE BONDS 50 MILLION WILL BEAR A FIVEYEAR MATURITY AND 70 MILLION
WILL BEAR A SEVENYEAR MATURITY THE BONDS WILL CARRY AN INTEREST RATE LOWER
THAN CHINA'S PREVIOUS EUROPEAN AND ASIAN ISSUES OF FLOATINGRATE BONDS IT
ADDED

THE BANK HAS RAISED ALMOST 31 BILLION FOR THE COUNTRY'S MAJOR PROJECTS
SINCE IT BEGAN SEEKING INTERNATIONAL FINANCING IN 1986 9307120106 930712
NEWSPAPERS SEEN POSTING RESULTS THAT ARE MIXED  CAUTION ON
CLINTON PLANS IS BLAMED FOR DECLINE IN ADS IN 2ND QUARTER  BY
PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL

NEWSPAPER PUBLISHERS ARE EXPECTED TO REPORT MIXED RESULTS FOR THE SECOND
QUARTER AS ADVERTISING SPENDING SAGS

SEVERAL PUBLISHERS TOLD ANALYSTS THAT UNCERTAINTY OVER THE CLINTON
HEALTHCARE AND TAX PACKAGES HAVE CAST A CLOUD OVER ADVERTISING PUBLISHERS
STARTED THE YEAR OPTIMISTIC OVER AN APPARENT ADVERTISING COMEBACK BUT IN
MANY MARKETS THAT UPSWING HAS STALLED AS SOME SEGMENTS OF CLASSIFIED
ADVERTISING HAS TURNED SOFT

THE OPTIMISM OF THE FIRST QUARTER HAS EVAPORATED IN THE SECOND QUARTER
SAID KENNETH T BERENTS ANALYST AT WHEAT FIRST SECURITIES INC BASED IN
RICHMOND VA THERE IS A CHILL IN THE AIR OVER THE CLINTON PACKAGES
HEALTHCARE EMPLOYMENT ADS ARE DOWN BECAUSE OF UNCERTAINTY OVER HEALTH CARE
AND THE TAX PACKAGE HAS ADVERTISERS FEELING UNCERTAIN THE WASHINGTON
SITUATION HAS A LOT OF PEOPLE HAMSTRUNG

MICHAEL A KUPINSKI AN ANALYST WITH AG EDWARDS & SONS INC BASED IN ST
LOUIS SAID PUBLISHERS WILL GET A BREAK FROM SOFTENING NEWSPRINT PRICES IN
THE SECOND HALF OF THE YEAR WHILE HE SAID ADVERTISING SEEMS TO HAVE
IMPROVED IN THE MIDWEST AND PARTS OF THE EAST COAST IT IS STILL OVERALL
UNEVEN IT'S BETTER IN SOME PLACES BUT NOT BY MUCH SAID MR KUPINSKI
YOU MAY NOT SEE REAL ADVERTISING COMMITMENTS UNTIL WE GET RESOLUTION OF THE
CLINTON ECONOMIC PACKAGE

GANNETT CO THE COUNTRY'S LARGEST NEWSPAPER PUBLISHER BASED IN ARLINGTON
VA IS EXPECTED TO REPORT EARNINGS FROM CONTINUING OPERATIONS OF 77 CENTS
TO 79 CENTS A SHARE COMPARED WITH 68 CENTS A SHARE A YEAR EARLIER KEVIN
GRUNEICH ANALYST FOR FIRST BOSTON CORP SAID IN A RECENT REPORT THAT
GANNETT'S NEWSPAPER AD LINAGE SOFTENED ONLY MARGINALLY FROM THE
FIRSTQUARTER PACE BUT NOTES THAT GANNETT'S CONSISTENT EARNINGS PERFORMANCE
IS DERIVED FROM THE GEOGRAPHIC DIVERSITY OF GANNETT'S PROPERTIES THAT
DOESN'T FORCE THE COMPANY TO RELY HEAVILY ON ANY ONE MARKET OR ANY ONE
REGION

CIRCULATION AND ADVERTISING HAVE BEEN GROWING AT GANNETT'S NATIONAL
NEWSPAPER USA TODAY MR GRUNEICH SAID USA TODAY WILL HAVE A PROFITABLE
SECOND QUARTER FOLLOWING MODEST FIRST QUARTER LOSSES AND IT IS ON TRACK FOR
ITS FIRST PROFITABLE YEAR BROADCAST GROUP REVENUE GROWTH ACCELERATED DURING
THE QUARTER HITTING DOUBLEDIGIT GAINS IN MAY AND JUNE WITH LOCAL
ADVERTISING ESPECIALLY STRONG

KNIGHTRIDDER INC BASED IN MIAMI IS EXPECTED TO REPORT EARNINGS FROM
CONTINUING OPERATIONS OF BETWEEN 77 AND 81 CENTS A SHARE COMPARED WITH 84
CENTS A SHARE FOR THE 1992 QUARTER WHEAT'S MR BERENTS NOTED THE COMPANY
HAD A TOUGH QUARTER WITH SLUGGISH RETAIL ADVERTISING IN MAJOR MARKETS SUCH
AS SAN JOSE AND PHILADELPHIA KNIGHTRIDDER'S TOTAL NEWSPAPER ADVERTISING
REVENUE ROSE 11 IN MAY FROM THE SAME PERIOD A YEAR AGO

TIMES MIRROR CO LOS ANGELES IS EXPECTED TO REPORT PERSHARE EARNINGS OF
30 CENTS TO 33 CENTS A SHARE AGAINST 34 CENTS A SHARE FOR THE 1992 QUARTER
ITS EAST COAST PAPERS ARE SHOWING SOME IMPROVEMENTS IN THE QUARTER BUT
ADVERTISING CONTINUES TO BE DEPRESSED AT THE COMPANY'S FLAGSHIP LOS ANGELES
TIMES WHICH IS STUCK IN A DEEP REGIONAL RECESSION LOS ANGELES IS IN THE
SOUP FOR A WHILE SAYS MR BERENTS I SEE THE EAST COAST PICKING UP BUT I
WORRY ABOUT NEW YORK CITY

AT NEW YORK TIMES CO THE QUARTER WAS MARKED BY ITS PLAN TO ACQUIRE
AFFILIATED PUBLICATIONS INC PUBLISHER OF THE BOSTON GLOBE LARGELY FOR
STOCK FOR NEW YORK TIMES ANALYSTS ESTIMATE EARNINGS FOR THE QUARTER OF 25
CENTS OR 26 CENTS A SHARE COMPARED WITH LAST YEAR'S 27 CENTS A SHARE

AD VOLUME FOR THE FLAGSHIP NEW YORK TIMES FELL 1 IN MAY FROM A YEAR
EARLIER IN THE FIRST FIVE MONTHS OF THE YEAR AD VOLUME WAS OFF 37 TO
311 MILLION LINES FIRST BOSTON'S MR GRUNEICH SAID THAT BEYOND THE
AFFILIATED ACQUISITIONRELATED STOCK REPURCHASE TIMES STOCK WILL STILL
REFLECT THE NEW YORK ECONOMIC MORASS WITH NO AD REBOUND IN SIGHT HE NOTED
THAT AD LINAGE HAD BEEN SOFTENING RECENTLY AT THE COMPANY'S 31 REGIONAL
NEWSPAPERS AND AD TRENDS SEEM ALSO TO BE SOFTENING IN THE MAGAZINE GROUP
WHICH INCLUDES TITLES SUCH AS FAMILY CIRCLE

CHICAGO'S TRIBUNE CO IS EXPECTED TO HAVE ONE OF THE BEST EARNINGS GAINS OF
THE GROUP TRIBUNE IS EXPECTED TO REPORT PRIMARY EARNINGS OF 85 CENTS A
SHARE COMPARED WITH 62 CENTS FOR THE 1992 QUARTER MR GRUNEICH SAID THE
COMPANY'S FLAGSHIP CHICAGO TRIBUNE HAS POSTED QUITE POOR ADVERTISING
COMPARISONS WITH YEAROVERYEAR FULLRUN LINAGE OFF MID TO HIGHSINGLE
DIGIT BUT IN BROADCASTING TV AD REVENUES PICKED UP SIGNIFICANTLY HE
SAID IN PART BECAUSE THE GROUP IS BROADCASTING THE GAMES OF AN ADDITIONAL
THREE MAJOR LEAGUE BASEBALL TEAMS THIS YEAR IN LOS ANGELES DENVER AND
PHILADELPHIA TRIBUNE OWNER OF THE CHICAGO CUBS IS THE BROADCAST
PROGRAMMER OF BOTH CUBS AND CHICAGO WHITE SOX GAMES 9307120105 930712
GENTRA APPROVES PLAN FOR SALE OF ITS ASSETS TO CANADIAN BANK

TORONTO GENTRA INC SAID ITS BOARD APPROVED A PLAN TO ALLOW THE
ACQUISITION OF VIRTUALLY ALL OF ITS OPERATING ASSETS BY ROYAL BANK OF
CANADA

THE PLAN ANTICIPATES THAT THE MONTREALBASED BANK WILL PAY ABOUT 166 BILLION
CANADIAN DOLLARS US13 BILLION TO ACQUIRE THE ASSETS FROM THE HOLDING
COMPANY PREVIOUSLY NAMED ROYAL TRUSTCO LTD IT WILL PROVIDE GENTRA WITH AS
MUCH AS C200 MILLION TO HELP REPURCHASE CERTAIN ASSETS FROM THE BANK A
TRANSACTION VALUED AT ABOUT C32 BILLION AN ADDITIONAL C100 MILLION WILL
BE MADE AVAILABLE TO GENTRA BY TRILON HOLDINGS INC'S TRILON FINANCIAL
CORP 48 OWNER OF GENTRA THE TRILON LOAN WILL BE SECURED BY A PLEDGE OF
SHARES OF SOME OF GENTRA'S US UNITS AND A SECOND FLOATING CHARGE ON
CANADIAN ASSETS

GENTRA SECURITY HOLDERS WILL BE ASKED TO VOTE ON THE PLAN OF ARRANGEMENT AT
A SERIES OF SPECIAL MEETINGS BETWEEN AUG 16 AND AUG 19 THE TRANSACTION
COULD CLOSE AS EARLY AS SEPT 1 THE COMPANY SAID

THE PLAN ALSO OUTLINES NEW REPAYMENT TERMS FOR GENTRA'S DEBT AND OFFERS
PREFERRED SHAREHOLDERS AN OPTION TO EXCHANGE THEIR HOLDINGS FOR JUNIOR
SUBORDINATED HOLDINGS

AS LONG AS THE CURRENT SENIOR AND SUBORDINATED DEBT OUTSTANDING REMAINS
GENTRA WILL BE RESTRICTED TO THE BUSINESS OF REALIZING ON THE ASSETS IT WILL
CONTINUE TO OWN TO REPAY THAT DEBT GENTRA SAID IT WILL CONTINUE TO OPERATE
AFTER REPAYMENT

AT MARCH 31 GENTRA HAD C952 MILLION OF SENIOR DEBT OUTSTANDING AND C126
BILLION OF SUBORDINATED DEBT FOLLOWING THE ROYAL BANK TRANSACTION ITS
ASSETS WILL BE VALUED AT C43 BILLION OF LOANS 9307120104 930712 GM
WORKERS URGED TO SEEK US BENEFITS DURING SUMMER HALT

DETROIT GENERAL MOTORS CORP AND THE UNITED AUTO WORKERS HAVE COME UP
WITH A NEW SOLUTION TO THE SUMMER VACATION PROBLEM GET UNCLE SAM TO PAY THE
TAB

THE COMPANY AND THE UNION ARE ASKING GM'S 267000 HOURLY WORKERS TO FILE FOR
US EMERGENCY UNEMPLOYMENT BENEFITS FOR THE FINAL TWO WEEKS OF JULY WHEN
GM HAS SCHEDULED A COMPANYWIDE SHUTDOWN

LAST YEAR THE ISSUE OF HOW TO PAY WORKERS DURING THE SHUTDOWN CAUSED A
STINK GM ANGERED UNION LEADERS BY ASKING THE RANKANDFILE DIRECTLY TO TAKE
VACATIONS EN MASSE DURING JULY THE UNION WANTED WORKERS TO GET UNEMPLOYMENT
BENEFITS WHICH WOULD BE CHARGED TO GM

THIS YEAR WORKERS ARE ELIGIBLE FOR FEDERAL PAYMENTS UNDER THE EMERGENCY
JOBLESS BENEFITS BILL SIGNED BY PRESIDENT BILL CLINTON IN MARCH THE MEASURE
EXTENDS THE BENEFITS OF THOSE WHO HAVE USED UP THEIR 26 WEEKS OF STATE
UNEMPLOYMENT INCOME

THE MOVE WILL SAVE MONEY FOR GM BECAUSE STATE APPLICATIONS FOR UNEMPLOYMENT
PAY WOULD BE CHARGED DIRECTLY TO GM THIS WOULD ADD TO THE COST OF EACH GM
VEHICLE BUILT THE COMPANY AND THE UNION SAID IN A JOINT STATEMENT SENT TO
WORKERS GM SAID IT COULDN'T ESTIMATE HOW MUCH MONEY IT WILL ACTUALLY SAVE
BECAUSE OF THE FEDERAL REIMBURSEMENTS

SEPARATELY THE 10 MAJOR US AUTO MAKERS PLAN TO BUILD 104464 VEHICLES
THIS WEEK DOWN 40 FROM THE 173525 ASSEMBLED A YEAR AGO

SEVERAL ASSEMBLY PLANTS WERE IDLED LAST WEEK BECAUSE OF THE ANNUAL CYCLE OF
SUMMER VACATIONS AND MODEL CHANGEOVERS INCLUDING TOYOTA MOTOR CORP'S
FACILITY IN GEORGETOWN KY NISSAN MOTOR CORP'S PLANT IN SMYRNA TENN
AND MAZDA MOTOR CORP'S PLANT IN FLAT ROCK MICH VIRTUALLY ALL CHRYSLER
CORP AND FORD MOTOR CO NORTH AMERICAN ASSEMBLY PLANTS WERE ALSO CLOSED
LAST WEEK 9307120103 930712 INTERNATIONAL NIPPON STEEL UNIT'S LOSS 
LEADS 2 OFFICIALS TO RESIGN  A WALL STREET JOURNAL NEWS ROUNDUP

TOKYO THE CHAIRMAN OF NIPPON STEEL CHEMICAL CO SAID HE AND A MANAGING
DIRECTOR WILL RESIGN IN AUGUST TO TAKE BLAME FOR HUGE LOSSES STEMMING FROM
FORWARD FOREIGNEXCHANGE CONTRACTS

THE SUBSIDIARY OF NIPPON STEEL CORP ON FRIDAY DISCLOSED THAT IT HAD A
VALUATION LOSS OF 139 BILLION YEN 128 MILLION ACCRUED OVER THE PAST
THREE YEARS THE LOSS WAS FOUND IN AN INHOUSE PROBE OF A MEMO CONCERNING
DOLLARFUTURES TRADING KEPT BY A DIRECTOR IN CHARGE OF ACCOUNTING MINORU
MURAOKA HE DIED IN A RAILWAY ACCIDENT MAY 19 POLICE SUSPECT IT WAS A
SUICIDE

THE MEMO SHOWED THE COMPANY'S BALANCE OF FORWARD DOLLAR BUYING CONTRACTS IN
JUNE 1990 STOOD AT 30959 MILLION WORTH 4729 BILLION YEN AT THE TIME BUT
THE BALANCE TURNED OUT TO BE WORTH ONLY 3339 BILLION YEN AT CURRENT
EXCHANGE RATES THE COMPANY SAID

NIPPON STEEL CHEMICAL CHAIRMAN ENJI MORIGUCHI SAID HE AND MANAGING DIRECTOR
MITSUO SAITO WHO IS RESPONSIBLE FOR ACCOUNTING WILL RESIGN NIPPON STEEL
CHEMICAL PLANS TO WRITE OFF THE LOSS OVER A TWOYEAR PERIOD AND WILL SELL
LAND AND SHAREHOLDINGS TO OFFSET THE IMPACT ON PROFITS FOR BOTH YEARS

IN THE FISCAL YEAR ENDED MARCH 31 NIPPON STEEL POSTED CONSOLIDATED PRETAX
PROFIT OF 2902 BILLION YEN 71 SMALLER THAN THE YEAR BEFORE NET INCOME
WAS 182 BILLION YEN DOWN 98 ON SALES OF 2951 TRILLION YEN DOWN 86
9307120102 930712 MARKETING & MEDIA NEW YORK POST STOPS PRINTING 
AT LEAST FOR NOW  BY PATRICK M REILLY STAFF REPORTER OF THE WALL
STREET JOURNAL

NEW YORK THIS IS NOW A THREENEWSPAPER CITY POSSIBLY PERMANENTLY

WITH MEDIA MOGUL RUPERT MURDOCH'S PULLOUT FROM TALKS WITH UNIONS AND
CANCELLATION OF HIS MANAGEMENT AGREEMENT ON FRIDAY THE NEW YORK POST IS NOW
IN LIMBO THE POST DIDN'T PUBLISH SATURDAY AND IT IS UNLIKELY THERE WILL BE
A PAPER TODAY ON FRIDAY EXECUTIVES OF MR MURDOCH'S NEWS CORP SAID THEY
FAILED TO OBTAIN FROM UNIONS THE ECONOMIES NEEDED TO HELP THE POST
SURVIVE IN RECENT MONTHS THE 192YEAROLD TABLOID HAS RUN UP LOSSES OF
ABOUT 300000 A WEEK

BUT THE POST IS HANGING ON OVER THE WEEKEND URGED ON BY NEW YORK GOV
MARIO CUOMO THE PAPER'S UNIONS HAMMERED OUT A NEW OFFER THAT MIGHT BRING
MR MURDOCH BACK TO THE BARGAINING TABLE LATE YESTERDAY AFTERNOON THE
UNIONS SAID THEY REACHED AGREEMENT ON A PACKAGE IT WAS UNCLEAR WHETHER MR
MURDOCH'S REPRESENTATIVES WOULD MEET AGAIN WITH THE UNIONS OR IF THERE WOULD
BE A RESPONSE TO A NEW UNION OFFER

REGARDLESS OF MR MURDOCH THE PAPER COULD BE RESURRECTED IN BANKRUPTCY
COURT THIS WEEK SHOULD A NEW POTENTIAL BUYER APPEAR AS HAS HAPPENED
FREQUENTLY IN RECENT MONTHS THE POST WHICH HAS OPERATED UNDER CHAPTER 11
BANKRUPTCY PROTECTION WAS ESTIMATED TO HAVE LOSSES OF 10 MILLION A YEAR
UNDER ITS LAST OWNER REALESTATE DEVELOPER PETER KALIKOW POST CREDITORS
ARE OWED 46 MILLION THEY INCLUDE INK AND PAPER SUPPLIERS AND POST
EMPLOYEES WHO WILL BE OWED SEVERANCE IF THE PAPER CLOSES FOR GOOD

WE WILL BE IN COURT TODAY SAID HOWARD SEIFE ATTORNEY REPRESENTING THE
POST'S CREDITORS IF THERE ARE NO DEVELOPMENTS WE WILL SEEK SOME RELIEF TO
KEEP THE PAPER STATUS QUO THAT DOESN'T MEAN PRINTING THE PAPER BUT IT
DOESN'T MEAN LIQUIDATION EITHER

ABE J HIRSCHFELD A PARKING GARAGE DEVELOPER WHO WAS BRIEFLY THE POST'S
COURTDESIGNATED OWNER LAST SPRING WAS REPORTED TO HAVE RENEWED INTEREST IN
ACQUIRING THE PAPER BUT MR SEIFE SAID I DON'T THINK ABE'S ENTRY WOULD BE
WELCOMED BY THOSE AT THE PAPER AND CREDITORS ALSO HAVE THEIR DOUBTS WHETHER
HE'S THE ANSWER ANOTHER REPORTED POTENTIAL BUYER COULD BE MANHATTAN
INVESTOR LEON CHARNEY WHO MADE A FAILED BID LAST YEAR FOR WIRE SERVICE
UNITED PRESS INTERNATIONAL

SHOULD THE PAPER NOT PUBLISH AGAIN IT NARROWS NEW YORK'S HISTORICALLY
COMBATIVE NEWSPAPER FIELD TO TWO TABLOIDS TIMES MIRROR CO'S NEW YORK
NEWSDAY AND MORTIMER ZUCKERMAN'S DAILY NEWS PLUS THE DOMINANT BROADSHEET
PAPER THE NEW YORK TIMES IT'S EXPECTED THAT THE DAILY NEWS WHICH LIKE
THE POST HAS A HEAVY BLUECOLLAR AND IMMIGRANT READERSHIP WOULD HAVE THE
MOST TO GAIN FROM THE POST'S DEATH

MORT IS THE BIG WINNER HERE SAID MR SEIFE REFERRING TO MR ZUCKERMAN
9307120101 930712 BUSINESS BRIEF NATIONAL GYPSUM LEAVES CHAPTER 11 
ARRANGES CREDIT LINE

DALLAS NATIONAL GYPSUM CO EMERGED FROM CHAPTER 11 BANKRUPTCYLAW
PROCEEDINGS AFTER A FEDERAL COURT MADE ITS REORGANIZATION PLAN EFFECTIVE

THE COMPANY ALSO SAID IT GOT A 75 MILLION THREEYEAR REVOLVING CREDIT LINE
FROM GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO WHICH
IT ANTICIPATES WILL BE INITIALLY USED ONLY FOR LETTERS OF CREDIT NATIONAL
GYPSUM WILL PAY INTEREST ON THE CREDIT LINE AT EITHER THE PRIME RATE PLUS
15 PERCENTAGE POINTS OR THE LONDON INTERBANK OFFERED RATE PLUS THREE
PERCENTAGE POINTS

UNDER THE PLAN NATIONAL GYPSUM'S WALLBOARD OPERATIONS HAVE BEEN TRANSFERRED
TO A NEW COMPANY WITH THE SAME NAME CREDITORS OF THE OLD COMPANY WILL
RECEIVE COMMON STOCK IN THE NEW COMPANY ALONG WITH CASH SENIOR NOTES OR
WARRANTS THE COMPANY SAID IT WILL ISSUE 20 MILLION COMMON SHARES VALUED AT
1250 EACH WARRANTS FOR AN ADDITIONAL 22 MILLION SHARES WITH AN EXERCISE
PRICE OF 1450 A SHARE AND 100 MILLION OF 10YEAR 10 SENIOR NOTES THE
OLD NATIONAL GYPSUM HAD 11 BILLION OF DEBT OUTSTANDING

NATIONAL GYPSUM'S FORMER OPERATING COMPANY RETAINED THE STOCK OF ITS AUSTIN
CO ENGINEERING AND CONSTRUCTION SERVICES UNIT ALONG WITH CASH AND
INSURANCE POLICIES COVERING ASBESTOS CLAIMANTS 9307120100 930712 WHO'S
NEWS SPECTRANETICS CORP

SPECTRANETICS CORP COLORADO SPRINGS COLO KINNEY L JOHNSON 49 YEARS
OLD AND GEORGE HM ROUNTREE 43 WERE NAMED TO THE SEVENMEMBER BOARD OF
THIS MEDICAL PRODUCTS MAKER THEY SUCCEED BRUCE BOEHM 39 WHO RESIGNED THIS
YEAR BECAUSE HE WAS MOVING OUT OF THE COUNTRY AND THE LATE ROBERT GOLOBIC
THE COMPANY'S FORMER CHAIRMAN AND FOUNDER WHO WAS KILLED IN A
MOUNTAINCLIMBING ACCIDENT LAST MONTH MR JOHNSON IS GENERAL PARTNER OF
CAPITAL HEALTH VENTURE PARTNERS MR ROUNTREE IS CHIEF FINANCIAL OFFICER OF
SPECTRANETICS 9307120099 930712 POLITICAL CONTRIBUTIONS BY UNDERWRITERS 
OF MUNICIPAL BONDS MIGHT BE BANNED  BY JOHN CONNOR SPECIAL TO THE
WALL STREET JOURNAL

WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD MAY PROPOSE A RULE
TO BAN MUNICIPAL BOND UNDERWRITERS FROM MAKING POLITICAL CONTRIBUTIONS TO
OFFICIALS OF STATES AND LOCALITIES WHOSE BONDS THEY UNDERWRITE

THAT'S OBVIOUSLY ONE OF THE ALTERNATIVES THEY'RE CONSIDERING SAID
SECURITIES AND EXCHANGE COMMISSIONER RICHARD ROBERTS WHO ALSO PREDICTED
THAT A COMING SEC STAFF REPORT TO CONGRESS WILL RECOMMEND GIVING THE SEC NEW
AUTHORITY IN THE MUNICIPAL SECURITIES AREA

A BAN ON POLITICAL CONTRIBUTIONS WOULD GO MUCH FURTHER THAN THE BOARD
INDICATED LAST MONTH WHEN IT PUBLICLY BROACHED THE IDEA OF REQUIRING
UNDERWRITERS TO DISCLOSE CAMPAIGN CONTRIBUTIONS AND OTHER PAYMENTS TO STATE
AND LOCAL OFFICIALS BEFORE UNDERWRITING THEIR BOND ISSUES

ANY SUCH BAN WOULD BE UNDERTAKEN IN THE NAME OF ENHANCING THE INTEGRITY OF
THE MUNICIPAL BOND MARKET POLITICAL CONTRIBUTIONS AND OTHER PAYMENTS TO
PUBLIC OFFICIALS FROM UNDERWRITERS HAVE COME INTO HIGH PROFILE BECAUSE OF A
FEDERAL INVESTIGATION THAT BEGAN WITH PROBES INTO ALLEGATIONS OF ILLEGAL
PAYMENTS AND OTHER POSSIBLE VIOLATIONS IN CONNECTION WITH A 29 BILLION NEW
JERSEY TURNPIKE BOND ISSUE

THE MUNICIPAL SECURITIES RULEMAKING BOARD IS A SELFREGULATORY BODY OVERSEEN
BY THE SEC IT WAS CREATED BY CONGRESS IN 1975 TO WRITE RULES FOR MUNICIPAL
BOND BROKERS AND DEALERS THE 15MEMBER BOARD WHOSE MEMBERS MOSTLY ARE BOND
UNDERWRITERS IS SLATED TO CONSIDER THE POLITICAL CONTRIBUTIONS QUESTION AT
A MEETING SET FOR LATE THIS MONTH

ACTING SEC CHAIRMAN MARY SCHAPIRO SAID IN AN INTERVIEW THAT AN OUTRIGHT BAN
ON POLITICAL CONTRIBUTIONS BY UNDERWRITERS MAY PRESENT CONSTITUTIONAL
ISSUES BUT IF THEY'VE FOUND A WAY AROUND THAT WE'D BE INTERESTED IN
LOOKING AT IT

ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE IDEA OF THE BOARD
PROMULGATING A RULE TO BAN POLITICAL CONTRIBUTIONS WAS DISCUSSED AS A
LEADING POSSIBILITY AT A RECENT MEETING OF REGULATORY AGENCY AND
CONGRESSIONAL STAFFERS

THE BOARD'S EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR SAID IT WOULD BE
INAPPROPRIATE TO COMMENT ON THE MATTER NOW HE SAID THE BOARD HASN'T BEEN
PRESENTED WITH OPTIONS AND WON'T CONSIDER ANY PROPOSALS UNTIL IT MEETS AT
THE END OF THE MONTH

CHAIRMAN JOHN DINGELL D MICH OF THE HOUSE ENERGY AND COMMERCE COMMITTEE
AND REP EDWARD MARKEY D MASS WHO HEADS THE PANEL'S TELECOMMUNICATIONS
AND FINANCE SUBCOMMITTEE HAVE ASKED REGULATORS TO ASSESS THE ADEQUACY OF
MUNICIPAL BOND REGULATION AND TO MAKE SUCH RECOMMENDATIONS AS THEY DEEM
APPROPRIATE

SEC COMMISSIONER ROBERTS SAID HE EXPECTS THAT THE REPORT TO BE PREPARED BY
THE SEC STAFF WILL HAVE A RECOMMENDATION TO EXPAND THE SEC'S AUTHORITY
LEGISLATIVELY IN THE MUNICIPAL SECURITIES AREA HE SAID HE WOULD EXPECT THE
REPORT TO RECOMMEND AN AFFIRMATIVE GRANT OF AUTHORITY FOR THE SEC IN THE
MUNICIPAL BOND AREA AS WELL AS CHANGES IN THE SOCALLED TOWER AMENDMENT A
1975 PROVISION THAT EXEMPTS STATE AND LOCAL ISSUERS OF MUNICIPAL SECURITIES
FROM FILING BOND OFFERING DISCLOSURE STATEMENTS WITH REGULATORS
9307120098 930712 WHAT'S NEWS  WORLDWIDE

MIDWEST FLOODS DISRUPTED TRAIN BARGE AND TRUCK SHIPMENTS ACROSS THE US

LONG STRETCHES OF THE MISSISSIPPI MISSOURI AND ILLINOIS RIVERS REMAINED
CLOSED TO COMMERCIAL NAVIGATION TRAPPING ABOUT 1000 BARGES AND SLOWING THE
FLOW OF COMMODITIES SLATED FOR EXPORT FROM RIVER PORTS AROUND NEW ORLEANS
MEANWHILE TRAIN AND TRUCK SHIPMENTS WERE DISRUPTED AS IMPORTANT RAILROAD
LINES AND ROADWAYS WERE FLOODED THE RISING WATERS MEANWHILE CONTINUED TO
ENGULF FARMLAND IN DES MOINES IOWA FLOODING SHUT DOWN A WATER SYSTEM
SERVING 250000 RESIDENTS

ON THE EAST COAST TEMPERATURES FELL INTO THE MID90S IN CITIES THAT HAD
EXPERIENCED TRIPLEDIGIT HEAT SINCE THE MIDDLE OF LAST WEEK AT LEAST 21
DEATHS HAVE BEEN BLAMED ON THE HEAT

UN ARMS INSPECTORS LEFT IRAQ ABRUPTLY AFTER THEIR MISSION WAS BLOCKED

THE INSPECTORS WERE BARRED FROM SEALING TWO MISSILE TEST SITES TOUCHING OFF
FEARS AMONG IRAQIS OF WESTERN MILITARY RETALIATION AFTER THE SUDDEN
DEPARTURE OF THE UN TEAM MOST STORES WERE EMPTIED OF FOOD AND BAGHDAD
HOTELS ADVISED RESIDENTS TO GO TO BASEMENT BOMB SHELTERS IF AIR RAID SIRENS
SOUNDED VICE PRESIDENT GORE SAID SADDAM SHOULD UNDERSTAND VERY CLEARLY
THAT HE CANNOT TRIFLE WITH THE WORLD COMMUNITY

TALKS ON ALLOWING IRAQ TO SELL OIL TO OBTAIN FOOD AND OTHER HUMANITARIAN
GOODS WERE DEADLOCKED WITH UN OFFICIALS READY TO BREAK OFF NEGOTIATIONS
IF PROSPECTS DIDN'T IMPROVE

CLINTON TOURED THE KOREAN DEMILITARIZED ZONE VOWING TO MAINTAIN US
MILITARY READINESS IN ASIA AND WARNING NORTH KOREA OF RETALIATION IF IT
DEVELOPS NUCLEAR WEAPONS THE PRESIDENT DECLARED THAT IF THE NORTH KOREANS
EVER BUILT AND USED NUCLEAR ARMS IT WILL BE THE END OF THEIR COUNTRY

BOSNIA'S COLLECTIVE PRESIDENCY SAID IT AGREED TO BACK A PLAN FOR A FEDERAL
STATE A MOVE THAT RUNS COUNTER TO SERBCROAT DEMANDS FOR THREE ETHNIC
MINISTATES BUT THE MUSLIM LEADERSHIP ANNOUNCED IT WOULD RETURN TO GENEVA
PEACE TALKS WITHIN 10 DAYS THE UN SUSPENDED AID CONVOYS TO CENTRAL
BOSNIA CITING A BUILDUP OF FORCES THERE

ISRAEL REINFORCED ITS ARTILLERY BATTERIES IN SOUTH LEBANON FOLLOWING
GUERRILLA ATTACKS THAT KILLED FIVE ISRAELI SOLDIERS LAST WEEK SECURITY
OFFICIALS SAID ISRAEL'S CABINET SAID IT VIEWED THE ATTACKS BY SYRIANBACKED
GUERRILLAS AS VERY GRAVE AND WARNED THAT ISRAEL WOULD RESPOND TO THE
ATTACKS REGARDLESS OF THE IMPACT ON MIDEAST PEACE TALKS

THE COAST GUARD FERRIED EMERGENCY SUPPLIES TO 659 CHINESE IMMIGRANTS ABOARD
THREE SHIPS OFF MEXICO'S PACIFIC COAST AS US AND MEXICAN OFFICIALS MET TO
DECIDE WHAT STEPS TO TAKE THE TWO NATIONS WERE SEEKING AN ACCORD ON A US
REQUEST THAT MEXICO DETAIN AND REPATRIATE THE UNDOCUMENTED IMMIGRANTS
INTERCEPTED LAST WEEK

GEORGIAN LEADER SHEVARDNADZE HINTED THAT HE MIGHT ORDER TOUGHER ARMY ACTION
TO END THE 11MONTHOLD CONFLICT IN BREAKAWAY ABKHAZIA SHEVARDNADZE WHO
HIS AIDES SAID WAS TWICE NEARLY KILLED IN GUERRILLA ATTACKS LAST WEEK SPOKE
TO REPORTERS IN THE REGION'S CAPITAL SUKHUMI AFTER IT WAS AGAIN HAMMERED
BY REBEL ARTILLERY

ZULU LEADERS TOLD SUPPORTERS THEY WILL OPPOSE MULTIRACIAL ELECTIONS IN SOUTH
AFRICA UNLESS THEY ARE GUARANTEED THAT THE ZULU HOMELAND WILL BE PRESERVED
ZULU GROUPS HAVE SO FAR REJECTED AN APRIL 1994 ELECTION DATE SAYING THEY
WANT A NEW FORM OF GOVERNMENT WITH PARTLY AUTONOMOUS STATES FREE OF
DOMINATION BY CENTRAL AUTHORITIES

A LONGTIME DISSIDENT HAS BEEN SENTENCED TO THREE YEARS IN A CHINESE LABOR
CAMP FOR TELLING FOREIGN REPORTERS ABOUT ANTIGOVERNMENT ACTIVITIES IN
SHANGHAI HIS WIFE SAID THE ACTION AGAINST FU SHENQI CAME AMID A RECENT
CRACKDOWN ON SHANGHAI DISSIDENTS

JOINT CHIEFS CHAIRMAN POWELL ARRIVED IN KUWAIT FOR HIS FIRST VISIT TO THE
COUNTRY HE HELPED FREE FROM IRAQI OCCUPATION IN THE GULF WAR SECURITY
FORCES SEARCHED BYSTANDERS AND USED BOMBSNIFFING DOGS ALONG POWELL'S ROUTE
FORMER PRESIDENT BUSH WAS THE TARGET OF AN ALLEGED IRAQBACKED ASSASSINATION
PLOT WHEN HE VISITED KUWAIT IN APRIL

YELTSIN REASSURED VISITING GERMAN CHANCELLOR KOHL THAT 190000 RUSSIAN
TROOPS STATIONED IN THE FORMER EAST GERMANY WOULD LEAVE ON SCHEDULE BY
AUGUST 1994 A DAY EARLIER THE RUSSIAN PRESIDENT ASKED KOHL FOR MORE HELP
IN CONSTRUCTING HOUSING FOR THE RETURNING RUSSIAN OFFICERS 9307120097
930712 INTERNATIONAL CHINA'S ECONOMIC CZAR ACTS TO REPAIR CHAOTIC
SYSTEM RAISES INTEREST RATES  BY JAMES MCGREGOR STAFF REPORTER OF
THE WALL STREET JOURNAL

BEIJING CHINA'S ECONOMIC CZAR ZHU RONGJI HAS BEGUN PUTTING HIS ECONOMIC
CLEANUP CAMPAIGN INTO ACTION SO FAR IT SEEMS TO BE A MIX OF TOUGH TALK
TIGHTER CREDIT AND GREAT HOPES OF AVOIDING A SHARP ECONOMIC DOWNTURN THAT
COULD INCREASE UNEMPLOYMENT

OVER THE WEEKEND MR ZHU WHO WAS APPOINTED CENTRAL BANK GOVERNOR JULY 2
RAISED INTEREST RATES AND UNVEILED A PLAN TO TIGHTEN CENTRAL CONTROL OVER
CHINA'S BANKS THE MEASURES ARE AIMED AT DAMPING SPECULATION AND COOLING
CHINA'S OVERHEATED ECONOMY BY BRINGING ORDER TO THE CHAOTIC FINANCIAL
SYSTEM

AT THE SAME TIME MR ZHU WHO CONCURRENTLY SERVES AS A VICE PREMIER
DIRECTOR OF CHINA'S SECURITIES REGULATORY COMMISSION CHIEF OF AGRICULTURE
POLICY AND MANAGER OF EFFORTS TO REVITALIZE MONEYLOSING STATE INDUSTRY 
WARNED THAT ANYBODY WHO STANDS IN HIS WAY MAY FIND HIMSELF FLATTENED

UNDER MR ZHU BEIJING HAS BEEN ACTING AGGRESSIVELY ON THE ECONOMY EARLIER
THIS MONTH THE COMMUNIST PARTY'S CENTRAL COMMITTEE ISSUED 16 POLICY
DIRECTIVES TO RESOLVE CONTRADICTIONS AND THORNY ECONOMIC ISSUES AMONG
THE DIRECTIVES WERE BELTTIGHTENING MEASURES SUCH AS SLASHING GOVERNMENT
SPENDING AND BANNING CAR IMPORTS

WHILE ORDERING CHINA'S GOVERNMENT BANKS TO CLEAN UP THEIR ACTIVITIES THE
64YEAROLD FORMER SHANGHAI MAYOR SAID THAT THOSE WHO VIOLATE HIS NEW
DIRECTIVES INCLUDING OFFICIALS IN HIGH POSITIONS WOULD BE SEVERELY
PUNISHED

THE DIRECTIVES WERE FOLLOWED BY A STATE COUNCIL MEETING AT WHICH MR ZHU
ORDERED CENTRAL MINISTRIES TO SEND OUT 10 TEAMS OF INSPECTORS TO 20
PROVINCES AND CITIES TO MAKE SURE THAT THE CENTRAL GOVERNMENT'S NEW POLICIES
ARE BEING CARRIED OUT

GOVERNMENT NEWSPAPERS REPORTED ON SATURDAY THAT MR ZHU WAS DEVISING A PLAN
FOR MACROCONTROL OF THE ECONOMY FOLLOWING A MEETING WITH CHINA'S SENIOR
BANKERS LAST WEEK THE REPORT SAID MR ZHU ORDERED BANKS TO REDIRECT THEIR
LOANS AWAY FROM PROPERTY AND SECURITIES AND INSTEAD CONCENTRATE ON APPROVED
INFRASTRUCTURE INVESTMENTS

SPECIFICALLY MR ZHU WANTS THE MONEY AIMED AT RELIEVING ECONOMIC
BOTTLENECKS SUCH AS ENERGY SHORTAGES AND INADEQUATE TRANSPORTATION
FACILITIES PROBLEMS THAT ARE HAMPERING RATIONAL ECONOMIC DEVELOPMENT

IN ADDITION MR ZHU WAS SAID TO HAVE GIVEN CHINA'S BANKERS THREE MAJOR
DIRECTIVES IMMEDIATELY CLEAN UP INTERBANK LENDING THAT HAS BEEN USED FOR
SPECULATION DON'T INDEPENDENTLY RAISE INTEREST RATES OR CIRCUMVENT
INTERESTRATE LIMITS THROUGH COMMISSIONS ON LOANS AND SEVER ALL LENDING
AND DIRECT LINKS TO BUSINESSES RUN BY THE BANKS

ON SUNDAY MR ZHU ATTEMPTED TO REDIRECT CHINA'S SAVINGS INTO THE BANKING
SYSTEM AND AWAY FROM SPECULATION IN THE SECOND INCREASE IN THREE MONTHS
INTEREST RATES ON DEPOSITS WERE RAISED BY AN AVERAGE OF 172 POINTS AND THE
RATE ON LOANS WAS INCREASED BY AN AVERAGE OF 138 POINTS

THE RATE ON ONEYEAR DEPOSITS WAS RAISED TO 11 FROM 918 TWO YEAR
DEPOSITS WERE BOOSTED TO 12 THREEYEAR TO 1224 AND FIVEYEAR TO 14
THE ANNOUNCEMENT SAID THAT THESE LONGTERM DEPOSITS WOULD ALSO BE PEGGED TO
INFLATION BUT DIDN'T ELABORATE ON HOW THAT WOULD WORK THE ANNOUNCEMENT
OFFERED FEW SPECIFICS ON LENDING OTHER THAN SAYING A SIXMONTH LOAN
INTEREST RATE IS INCREASED TO 9 FROM 882 AND A ONEYEAR LOAN TO 11 FROM
936

MR ZHU ALSO TRIED TO HEAL A FESTERING PROBLEM IN CHINA'S DEFICIT FINANCING
SYSTEM RAISING RATES PAID ON GOVERNMENT BONDS

BY THE END OF APRIL CHINA HAD SOLD ONLY 46 BILLION YUAN 8043 MILLION
OF THE 30 BILLION YUAN IN TREASURY BONDS THE GOVERNMENT IS ISSUING IN 1993
TO COVER ITS FISCAL DEFICIT MR ZHU'S FIRST SHOT AT FIXING THIS PROBLEM
CAME TWO WEEKS AGO WHEN HE ORDERED ALL CENTRAL GOVERNMENT UNITS TO FORCE
THEIR WORKERS TO BUY THE UNSOLD BONDS THIS HAS CAUSED MUCH GRUMBLING AMONG
GOVERNMENT WORKERS IN BEIJING SOME OF WHOM MUST INVEST MORE THAN TWOMONTHS
OF THEIR SALARY IN THE BONDS

ON SATURDAY IN AN ATTEMPT AT A LONGERTERM FIX THE MINISTRY OF FINANCE
ANNOUNCED THAT 1993 TREASURY BOND INTEREST RATES WOULD BE INCREASED THE
INCREASE IS TO 14 FROM 13 FOR THREEYEAR BONDS AND TO 16 FROM 14 FOR
FIVEYEAR BONDS

ANALYSTS SAID THAT MR ZHU APPEARS TO BE TRYING TO BRING CHINA'S OVERHEATED
ECONOMY IN FOR A SOFT LANDING THE HOPE IS THAT TIGHTER BANKING CONTROLS
WILL REDUCE SPECULATION AND UNAPPROVED PROPERTY DEVELOPMENTS WHICH IN
TURN WILL COOL INFLATION NOW RUNNING AT ABOUT 20 IN CHINA'S BIG CITIES

LAST THURSDAY CHEN YUAN VICE GOVERNOR OF THE CENTRAL BANK THE PEOPLE'S
BANK OF CHINA GAVE A SPEECH IN BEIJING SAYING THAT THE GOVERNMENT WANTS TO
DO AWAY WITH USING EDICTS TO DIRECT THE ECONOMY AND INSTEAD DEVELOP
MACROECONOMIC CONTROLS AND A REAL CENTRAL BANK THAT SAME DAY MR ZHU
REPORTEDLY TOLD CHINA'S SENIOR BANK MANAGERS THAT HE WANTS TO AVOID A
FULLSCALE RETRENCHMENT POLICY THAT COULD STIFLE INSTEAD OF MERELY SLOW
THE ECONOMY

A SHARP DOWNTURN COULD LEAD TO WIDESPREAD UNEMPLOYMENT DUE TO A 1970S BABY
BOOM CHINA'S MINISTRY OF LABOR SAYS SOME SEVEN MILLION CITY YOUTH ARE
JOINING THE URBAN LABOR FORCE EACH YEAR WHILE THE NUMBER OF SURPLUS RURAL
WORKERS IS INCREASING BY 20 MILLION A YEAR

OF CHINA'S CURRENT WORK FORCE OF 580 MILLION 430 MILLION ARE IN THE
COUNTRYSIDE AND 150 MILLION WORK IN CITIES 9307120096 930712 VALLEY
SYSTEMS INC CREDIT LINE EXPIRES BURDGE TO BE PRESIDENT

CANAL FULTON OHIO VALLEY SYSTEMS INC WHICH HAS BEEN GRAPPLING WITH
ACCOUNTING PROBLEMS SAID ITS REVOLVING CREDIT LINE HAS EXPIRED AND ITS BANK
WANTS FULL PAYMENT

THE INDUSTRIAL CLEANING COMPANY SAID IT OWED 8 MILLION TO FIFTH THIRD
BANCORP CINCINNATI AS OF JULY 5 WHEN THE FACILITY EXPIRED VALLEY SYSTEMS
SAID IT REQUESTED AN EXTENSION BUT WAS TURNED DOWN

FIFTH THIRD HAS NOW CALLED ITS OTHER LOAN OBLIGATIONS AS WELL AS EQUIPMENT
LEASES VALLEY SYSTEMS SAID IT IS ASKING FIFTH THIRD FOR A FORBEARANCE
AGREEMENT

THE COMPANY SAID IT DOES NOT HAVE ENOUGH FUNDS TO REPAY FIFTH THIRD AND IS
LOOKING FOR ADDITIONAL CAPITAL

SEPARATELY VALLEY SAID ADELBERT D BURDGE 36 YEARS OLD WILL BECOME
PRESIDENT AND THE COMPANY'S FIRST CHIEF OPERATING OFFICER HE REPLACES
RICHARD CHAPIS 50 AS PRESIDENT MR CHAPIS RESIGNED IN JUNE

THE COMPANY CONTINUES TO OPERATE WITHOUT A CHAIRMAN AND CHIEF EXECUTIVE
OFFICER FOLLOWING THE APRIL RESIGNATION OF EUGENE VALENTINE 56

VALLEY LAST YEAR SAW ITS STOCK PRICE PLUMMET AND FACED A NUMBER OF
SHAREHOLDER SUITS WHEN ITS CHIEF FINANCIAL OFFICER NICHOLAS PACE 48
RESIGNED AFTER AN AUDIT LISTED PROBLEMS WITH THE COMPANY'S ACCOUNTING
PRACTICES IN NATIONAL OVERTHECOUNTER TRADING FRIDAY VALLEY SHARES CLOSED
UNCHANGED AT 350

DENNIS SHEETS 38 WILL REPLACE MR PACE AS CFO AND WILL BECOME THE
COMPANY'S FIRST VICE PRESIDENT AND TREASURER HE HAD SERVED TEMPORARILY AS
PRESIDENT FOLLOWING MR CHAPIS'S RESIGNATION VALLEY IS 70 OWNED BY
ATLANTA'S ROLLINS INVESTMENT FUND 9307120095 930712 REVIEW & OUTLOOK
EDITORIAL TURN BACK

TODAY IN WASHINGTON A LARGE NUMBER OF SENATORS AND MEMBERS OF THE HOUSE OF
REPRESENTATIVES WILL GATHER IN A LARGE AND ORNATE ROOM INSIDE THE CAPITOL TO
PLAY LET'S PRETEND THIS IS HOW IT GOES

LET'S PRETEND THERE ARE MORE THAN FIVE PEOPLE IN WASHINGTON WHO HONESTLY
BELIEVE THAT BILL CLINTON'S BUDGET AND TAX BILL WILL HELP THE ECONOMY

LET'S PRETEND THERE ARE ANY MEMBERS WHO WILL BE IN REAL REELECTION RACES
NEXT YEAR WHO TRULY BELIEVE THERE IS ANY POLITICAL GAIN TO BE HAD FROM
PASSING MR CLINTON'S NEW TAXES

LET'S PRETEND THAT JUST AS PRESIDENT CLINTON PROMISED MOST OF THE NEW TAX
REVENUE WILL COME FROM THE WEALTHY THE CLINTON PLUTOCRACY NOW BEGINS AT
INCOMES ABOVE 115000 IF ANYONE STILL ACTUALLY BELIEVES THE GOVERNMENT
WILL REALIZE THESE REVENUE PROJECTIONS WE SUGGEST THAT YOU LIE DOWN YOU'LL
GET OVER IT IN A BIT

LET'S PRETEND THAT JUST AS PRESIDENT CLINTON PROMISED ALL THE TAX REVENUE
WILL GO INTO A TRUST FUND THAT WILL BE USED ONLY TO REDUCE THE DEFICIT AND
THAT CONGRESS WILL NEVER LAY A HAND ON IT THEY PROMISE JUST AS THEY ONCE
PROMISED 3 OF SPENDING REDUCTION FOR EVERY 1 IN TAX INCREASES AND JUST AS
THEY PROMISED GEORGE BUSH IN 1990 THAT HE WAS GETTING REAL SPENDING CUTS IN
RETURN FOR BREAKING HIS NONEWTAXES PLEDGE

LET'S PRETEND THAT JUST AS WAS BEING REPORTED OUT OF THE TOKYO SUMMIT LAST
WEEK THAT THE G7 LEADERS REALLY BELIEVE THAT THE US HAS A PRESIDENT WHO
IS GOING TO DO SOMETHING ABOUT THE DEFICIT

LET'S PRETEND IT IS POSSIBLE TO TAX OUR WAY TO PROSPERITY

FINALLY AND THIS IS WHERE THE HOUSESENATE CONFEREES ARE REALLY GOING TO
HAVE A LOT OF FUN LET'S PRETEND THAT THE AMERICAN PEOPLE BELIEVE ALL THIS
TOO AGAIN

WE HAVE SOME FRIENDLY ADVICE FOR THE HOUSESENATE CONFEREES WHO ARE ABOUT TO
PLAY LET'S PRETEND DON'T DO IT BEFORE IT'S TOO LATE TURN BACK

WASHINGTON IT IS NO SECRET HAS AN UNUSUAL SKILL AT DISCONNECTING ITSELF
FROM THE WORLD OF CONCRETE PRACTICAL REALITY IN AN INDIVIDUAL THIS WOULD
BE CALLED MENTAL ILLNESS BUT THIS IS POLITICS HERE WE HAVE A CONGRESS THAT
JUST WENT THROUGH A 1992 ELECTION IN WHICH MANY VOTERS WERE OF A MIND TO
TOSS INCUMBENTS INTO MOLTEN LAVA SOMEHOW ALONG THE WAY HOWEVER BILL
CLINTON AND HIS INNER CIRCLE CONVINCED THEMSELVES THAT THIS WHITEHOT VOTER
FURY WAS CAUSED BY GRIDLOCK IN WASHINGTON

THEY DECIDED THAT VOTERS ESPECIALLY MIDDLECLASS VOTERS WOULD CALM DOWN
AND EVEN BE HAPPY IF THE NEW ADMINISTRATION PASSED A BUDGET THAT INCLUDED
SOME 250 BILLION IN NEW TAXES AN ENERGY TAX ON EVERYONE AND HIGHER
MARGINAL RATES ON THE RICH OF THE 1980S

NOW AGAIN THERE IS NO EVIDENCE THAT THE POLITICS OR ECONOMICS OF THIS
BUDGET HAS A BASIS IN ANYTHING BEYOND FANTASY HOUSE DEMOCRATS HAD TO BE
PULLED KICKING AND SCREAMING TO VOTE FOR THE BUDGET THEY WERE TOLD THAT THE
INFANT PRESIDENCY ITSELF WAS AT STAKE THE HOUSE LEADERSHIP HAD TO THREATEN
DOUBTING SUBCOMMITTEE CHAIRMEN THAT THEIR POSITIONS MIGHT BE OBLITERATED IF
THEY DIDN'T COME ACROSS WHILE THIS FORCED MARCH WAS TAKING PLACE ON CAPITOL
HILL DEMOCRATIC SENATOR BOB KREUGER OF TEXAS WAS OBLITERATED IN A SPECIAL
ELECTION BY A REPUBLICAN RUNNING AGAINST THE CLINTON BUDGET

MEANWHILE THE SENATE LEADERSHIP IN CHARGE OF ITS VERSION OF THE POLITICAL
DEATH MARCH ALLOWS THE LIKES OF NEW JERSEY'S SENATOR FRANK LAUTENBERG A
BIGTIME PUBLIC SPENDER FROM THE DAY OF HIS BIRTH TO VOTE AGAINST THE
PRESIDENT'S BUDGET BECAUSE HE SAYS NEW JERSEY'S TAXPAYERS WILL GET THE
SHORT END OF THE STICK IN THIS PACKAGE

SO WE KNOW FOR SURE THAT THE CLINTON TAXES ARE POLITICAL POISON WHAT ABOUT
THE ECONOMY

IT WAS HARD TO SEE BUT A WEEK AGO FRIDAY THE CLINTON ADMINISTRATION WHILE
DRIVING A LARGE BLACK SEDAN AT HIGH SPEED ACROSS THE 14TH STREET BRIDGE
OPENED THE DOOR AND SHOVED OUT THEIR REVISED DOWNWARD GDP ESTIMATE FOR THIS
YEAR TO 25 FROM 31 FOR READERS OF THE WALL STREET JOURNAL THIS WOULD
COME AS NO SURPRISE THIS PAPER'S NEWS COLUMNS HAVE BEEN FILLED ROUTINELY
THE PAST WEEKS WITH ECONOMISTS AND BUSINESSMEN BIG SMALL REPUBLICAN AND
DEMOCRAT ALL CITING THE CLINTON TAX MEASURES AS THE SINGLE STRONGEST
DETERRENT TO CAPITAL COMMITMENTS OR NEW HIRES OTHERS CITE THE LOOMING
HEALTH REFORM

IF CONGRESS WERE SERIOUS ABOUT HELPING THE ECONOMY IT WOULD DO NOTHING
BEYOND ESSENTIALLY ROLLING LAST YEAR'S BUDGET FORWARD PRIOR TO THE CLINTON
WAR ON CONFIDENCE THE ECONOMY WAS STRENGTHENING AND THE FED WAS HOLDING
PRICES STEADY NOW BOTH THE ECONOMY AND THE FED ARE UNDER HUGE ADVERSE
PRESSURE WE ARE ON THE BRINK OF HURTING VIRTUALLY EVERY SECTOR OF THE
ECONOMY BECAUSE THE CONGRESSIONAL LEADERSHIP FEELS OBLIGED TO BAIL OUT A
VERY CONFUSED PRESIDENT

IT'S AN EXTRAORDINARY SPECTACLE THIS BUDGET CONFERENCE BECAUSE WE SUSPECT
THAT MOST VOTERS INCLUDING DEMOCRATS KNOW THIS TIME EXACTLY WHO'S PLAYING
PRETEND WITH THEIR TAXES IN WASHINGTON AGAIN 9307120094 930712
CANADA'S MAJOR BANKS LOWER THE PRIME RATE BELOW US'S TO 575

OTTAWA CANADA'S MAJOR BANKS LOWERED THEIR PRIME LENDING RATES ONEQUARTER
OF A PERCENTAGE POINT TO 575 THE LOWEST LEVEL IN 26 YEARS

THE REDUCTION BROUGHT CANADA'S PRIME RATE BELOW THE US PRIME RATE OF 6
FOR THE FIRST TIME SINCE 1984

THE CANADIAN RATE CUT WHICH TAKES EFFECT TODAY FOLLOWED RECENT DECLINES IN
CANADIAN SHORTTERM INTEREST RATES AND A STRENGTHENING OF THE CANADIAN
DOLLAR THE BANK OF NOVA SCOTIA ONE OF CANADA'S MAJOR BANKS SAID
RELATIVELY SOFT ECONOMIC CONDITIONS ARE ENCOURAGING THE BANK OF CANADA TO
MAINTAIN A VERY ACCOMMODATIVE MONETARY POLICY

NATIONAL TRUST CO LOWERED ITS PRIME RATE TO 575 IN MAY BUT UNTIL TODAY
NO OTHER MAJOR FINANCIAL INSTITUTION HAD MATCHED THE CUT THE PRIME RATE IS
A BENCHMARK FOR VARIOUS LENDING CHARGES 9307120093 930712 BACKROOM DEAL
 HOW THE US JAPAN RESOLVED DIFFERENCES TO REACH A TRADE PACT  
BEHINDTHESCENES HAGGLING LED TO TENUOUS ACCORD FOR MOREOPEN MARKETS 
 A EUPHEMISH FOR PROCESS'  BY DAVID WESSEL AND JACOB M
SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL

TOKYO IT WAS NEARLY MIDNIGHT WHEN ROGER ALTMAN BOWMAN CUTTER AND THEIR
NEGOTIATING SQUAD LANDED AT AN AIR BASE OUTSIDE TOKYO LAST MONDAY NIGHT AND
THEY HAD AN URGENT REQUEST FOR THE US AIRMEN WHO MET THEM WE NEED A
SECURE PHONE

THE AIRMEN TOOK THE TWO OFFICIALS MR ALTMAN IS DEPUTY TREASURY SECRETARY
AND MR CUTTER IS DEPUTY DIRECTOR OF THE WHITE HOUSE NATIONAL ECONOMIC
COUNCIL TO AN ANTIQUATED COMMAND CENTER SOMEONE FLICKED ON THE LIGHT
WE HAVE TO CALL AIR FORCE ONE ONE OF THE OFFICIALS SAID WHAT'S THE
NUMBER ONE OF THE AIRMEN ASKED 1800AIRFORCEONE JOKED MR CUTTER

AFTER SEVERAL MINUTES OF CONFUSION SOMEONE CALLED THE WHITE HOUSE
SWITCHBOARD WHICH MADE THE CONNECTION AND THE NEGOTIATORS GOT THE APPROVAL
THEY NEEDED TO MAKE A NEW OFFER TO THE JAPANESE

THUS BEGAN FOUR DAYS OF AROUNDTHECLOCK TALKS THAT COINCIDED WITH THE GROUP
OF SEVEN SUMMIT HERE IT WAS AN UNUSUAL EVENT PITTING THE FINAL WISHES OF A
POLITICALLY HUMILIATED JAPANESE PRIME MINISTER AGAINST THE AMBITIONS OF A
NOVICE US PRESIDENT IN THE END THE TWO LEADERS WERE ABLE TO PRODUCE 
TO THE SURPRISE AND AT TIMES DESPITE THE RESISTANCE OF SOME OFFICIALS IN
BOTH GOVERNMENTS A NEW FRAMEWORK FOR TRADE TALKS BETWEEN THE WORLD'S
TWO LARGEST ECONOMIES

IN THE POSTCOLD WAR ERA TRADE TALKS ARE BECOMING THE EQUIVALENT OF ARMS
CONTROL NEGOTIATIONS TALKS WHERE EACH NUANCE IS FOLLOWED CLOSELY BUT
INSTEAD OF WASHINGTON BARGAINING WITH MOSCOW THE TITANS NOW ARE THE US
VS JAPAN A BEHINDTHESCENES LOOK AT HOW THIS AGREEMENT CAME TOGETHER
SHOWS JUST HOW DELICATE THESE NEGOTIATIONS WERE AND RAISES SOME SERIOUS
QUESTIONS ABOUT WHETHER RELUCTANT JAPANESE MINISTRIES WILL COOPERATE IN THE
FOLLOWUP TALKS OVER THE NEXT FEW MONTHS

BUT THE STORY BEHIND THE TALKS ALSO SHOWS HOW THE PRESIDENT'S INTERNATIONAL
ECONOMIC TEAM IS FINALLY BEGINNING TO JELL THE CLINTON ADMINISTRATION
RESPONDED QUICKLY TO TAKE ADVANTAGE OF AN OPENING IN THE JAPANESE
NEGOTIATING POSITION AND BY DOING SO ACHIEVED AN AGREEMENT THAT WHILE
PRECARIOUS HAS AT LEAST A CHANCE OF ALTERING USJAPAN TRADE RELATIONS

FOR PRESIDENT CLINTON THE PACT WAS THE FIRST STEP TOWARD FULFILLING A
CAMPAIGN PROMISE TO PROMPT JAPAN TO OPEN ITS MARKETS TO FOREIGN GOODS FOR
EMBATTLED PRIME MINISTER KIICHI MIYAZAWA THE AGREEMENT WAS THE PRODUCT OF A
LASTDITCH BID TO SALVAGE SOME RESPECTABILITY IF NOT HIS JOB IT WAS THE
RESULT OF A RARE OPEN FIGHT BETWEEN THE SEASONED JAPANESE POLITICIAN AND
THE POWERFUL BUREAUCRACY THAT JEALOUSLY GUARDS ITS CONTROL OVER TRADE
POLICY THE 73YEAROLD PRIME MINISTER WAS SEEMINGLY LIBERATED FROM THE
CONSTRAINTS THAT SO OFTEN BLOCK JAPANESE LEADERS FROM TAKING BOLD ACTION

BUT FOR MESSRS ALTMAN AND CUTTER CHARLENE BARSHEFSKY THE DEPUTY TRADE
REPRESENTATIVE JOAN SPERO AN UNDERSECRETARY OF STATE AND ALAN BLINDER AN
ASYETUNCONFIRMED MEMBER OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS
IT WAS ALMOST A MIRACLE

THEY HAD LEFT TOKYO EMPTYHANDED ON JUNE 28 CONVINCED THAT THERE WOULDN'T
BE ANY SERIOUS BARGAINING UNTIL AFTER JAPAN'S ELECTIONS NEXT SUNDAY MR
ALTMAN WAS SO CERTAIN THAT JAPANESE OVERTURES WEREN'T SERIOUS THAT HE FLEW
TO JOIN HIS FAMILY AT THEIR RANCH IN JACKSON HOLE WYO FOR THE FOURTH OF
JULY WEEKEND HE WAS BRANDING CALVES WHEN HIS WIFE DROVE UP WITH AN URGENT
MESSAGE FROM MR CUTTER MR ALTMAN PHONED WASHINGTON FROM HIS PICKUP
WE'RE GOING BACK MR CUTTER SAID THE NEXT DAY HE FLEW TO SALT LAKE CITY
AND THEN TO ANCHORAGE ALASKA TO RENDEZVOUS WITH A MILITARY JET

ONCE BACK IN TOKYO THE NEGOTIATORS SPENT THE FIRST TWO DAYS SPINNING THEIR
WHEELS UNTIL MR MIYAZAWA ASKED SENIOR DIPLOMAT HISASHI OWADA 
COINCIDENTALLY THE FATHER OF THE NEW PRINCESS TO TAKE OVER AND EVEN
THEN THE TALKS WERE CONTENTIOUS NEGOTIATORS SPENT TWO HOURS ARGUING OVER
THE WORD GOALS

AT AROUND 1 AM SATURDAY AS MR CLINTON'S AIDES WERE BRIEFING HIM IN HIS
PENTHOUSE SUITE IN THE HOTEL OKURA ON THE DEAL THEY HAD STRUCK THERE WAS
WORD THAT TWO JAPANESE OFFICIALS ONE FROM THE MINISTRY OF FOREIGN
AFFAIRS THE OTHER FROM THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY
WERE ON THEIR WAY TO MAKE LASTMINUTE CHANGES MS BARSHEFSKY KNOWN AS
STONEWALL AMONG THE NEGOTIATORS WAS DISPATCHED TO HOLD THEM OFF AROUND
145 AM MR CUTTER WENT DOWN TO THE LOBBY TO INVESTIGATE THE PROBLEM IT
SEEMED WAS THAT THE JAPANESE TRADE MINISTRY WASN'T HAPPY WITH WHAT THE
MINISTRY OF FOREIGN AFFAIRS HAD AGREED TO MS BARSHEFSKY WAS INSISTING THAT
A DEAL WAS A DEAL THE TENSION BETWEEN THE TWO JAPANESE OFFICIALS WAS SO
GREAT THAT AT ONE POINT THERE WAS ACTUALLY A PHYSICAL SCUFFLE BETWEEN THEM
AMERICAN WITNESSES SAID

THE IMPORTANCE OF THE FRAMEWORK WAS MADE CLEAR IN TOKYO SATURDAY MORNING
WHEN MR CLINTON'S BRIEF MEETING AND NEWS CONFERENCE WITH RUSSIAN PRESIDENT
BORIS YELTSIN WERE OVERSHADOWED BY THE CLINTONMIYAZAWA ANNOUNCEMENT THAT
FOLLOWED THE ANNOUNCEMENT ALSO DEMONSTRATES THAT FOR ALL THE THOUSANDS OF
PEOPLE WHO MAKE UP A GOVERNMENT THERE ARE TIMES WHEN THE PERSON AT THE VERY
TOP MAKES A DIFFERENCE MESSRS CLINTON AND MIYAZAWA WERE SO DETERMINED TO
STRIKE A DEAL AGAINST THE ODDS AND AT TIMES AGAINST THE ADVICE OF
THEIR OWN ADVISERS THAT THE EVENT REMINDED SOME OF THE REAGANGORBACHEV
SUMMIT AT REYKJAVIK WHERE THENPRESIDENT REAGAN SHOCKED HIS AIDES BY OFFERING
TO DO AWAY WITH ALL BALLISTIC MISSILES

IT WILL BE MONTHS IF NOT YEARS BEFORE THE SIGNIFICANCE OF THE FRAMEWORK
FOR A NEW ECONOMIC PARTNERSHIP IS CLEAR FRAMEWORK' IS A EUPHEMISM FOR
PROCESS SAYS ONE SENIOR US OFFICIAL INDEED THE AGREEMENT SIMPLY SETS
THE AGENDA FOR FURTHER TALKS WHICH ARE CERTAIN TO BE CONTENTIOUS AND THE
WORDING OF THE DOCUMENT IS IN PLACES VAGUE AND SUBJECT TO DIFFERENT
INTERPRETATIONS MAYBE THIS TIME WE CAN DO WHAT THE AMERICANS DO SAID AN
OFFICIAL OF THE JAPANESE FINANCE MINISTRY WAIT FOR A NEW ADMINISTRATION
THEN DISREGARD OUR PAST COMMITMENTS

THE FIVE AREAS ARE EXPANDING JAPANESE GOVERNMENT PURCHASES OF FOREIGN
COMPUTERS SATELLITES MEDICAL TECHNOLOGY AND COMMUNICATIONS REFORMING LAWS
AND RULES THAT INHIBIT IMPORTS AND REMOVING MARKETACCESS BARRIERS IN
FINANCIAL SERVICES INSURANCE AND DISTRIBUTION EXPANDING IMPORTS OF
FOREIGN AUTOS AND AUTO PARTS AMONG OTHER PRODUCTS HARMONIZING FOREIGN
DIRECT INVESTMENT RULES AND LAWS IN BOTH COUNTRIES AND IMPLEMENTING
PREVIOUS USJAPAN TRADE AGREEMENTS

THE US DIDN'T GET A PLEDGE FROM THE JAPANESE TO SET NUMERICAL GOALS FOR
REDUCING ITS HUGE TRADE SURPLUS OR FOR INCREASING ITS OVERALL IMPORTS
SETTLING INSTEAD FOR A PLEDGE TO IMPLEMENT POLICIES INTENDED TO ACHIEVE 
 A HIGHLY SIGNIFICANT DECREASE IN THE BROADEST MEASURE OF ITS TRADE
SURPLUS KNOWN AS THE CURRENTACCOUNT BALANCE BUT IN WHAT THE US
CONSIDERS THE CRUCIAL VICTORY WASHINGTON DID WIN A JAPANESE COMMITMENT TO
USE SETS OF OBJECTIVE CRITERIA EITHER QUALITATIVE OR QUANTITATIVE OR BOTH
TO EVALUATE PROGRESS IN FIVE SEPARATE SETS OF TALKS AIMED AT OPENING
IMPORTANT JAPANESE MARKETS TO US AND OTHER FOREIGN FIRMS

AT LEAST WE HAVE AGREED WHAT THE OUTCOME OF THESE NEGOTIATIONS NEEDS TO BE
TANGIBLE MEASURABLE PROGRESS MR CLINTON SAID THE TWO HEADS OF STATE ARE
TO REVIEW THIS PROGRESS IN SUMMITS TO BE HELD EVERY SIX MONTHS US
NEGOTIATORS BOASTED THAT THEY STEADFASTLY AND SUCCESSFULLY RESISTED A
JAPANESE DEMAND THAT THE ACCORD INCLUDE A PHRASE THAT STATED THAT THE
CRITERIA SHOULDN'T BE USED AS TARGETS OR COMMITMENTS FOR THE FUTURE

BUT THE JAPANESE WERE QUICK TO POINT OUT THAT THE WORDING DOESN'T COMMIT
THEM TO SETTING FIRM TARGETS AS THEY DID A FEW YEARS AGO IN A PACT TO
INCREASE FOREIGNERS' SHARE OF THE JAPANESE SEMICONDUCTOR MARKET IF WE SET
TARGETS FOR THE FUTURE  WE HAVE TO MANAGE TRADE A SENIOR MITI
NEGOTIATOR SAYS ADDING IF SOMEONE IN THE US GOVERNMENT ASKS TO SET A
GOAL WE'LL CLEARLY REFUSE MR MIYAZAWA HIMSELF STRESSED A CLAUSE THAT
LIMITS CONSULTATIONS TO MATTERS WITHIN THE SCOPE AND RESPONSIBILITY OF
GOVERNMENT WHICH GIVES THE JAPANESE AN EXCUSE IF PRIVATE INDUSTRY DOESN'T
COOPERATE

MEANWHILE JAPAN'S BUREAUCRATS WHO ARE RESPONSIBLE FOR IMPLEMENTING THE
AGREEMENT MAY NOT DO SO ENTHUSIASTICALLY THERE'S NO SENSE OF OWNERSHIP IN
THE AGREEMENT BY THE BUREAUCRATS SAYS ONE JAPANESE OFFICIAL SOME OF THE
WORDINGS ARE VAGUE HE NOTES AND WHILE HE INSISTS OFFICIALS WILL CARRY OUT
THE LETTER OF THE PACT HE NOTES THAT THERE'S A LOT OF ROOM FOR
INTERPRETATION

OBVIOUSLY THERE'S A LOT OF VAGUE LANGUAGE THAT'S EASY TO INTERPRET BOTH
WAYS SAYS CLYDE PRESTOWITZ A FORMER US TRADE NEGOTIATOR WHO HAS BECOME
A CRITIC OF THE WAY THE US HAS HANDLED THE JAPANESE BUT YOU NOW HAVE
THIS AT THE HEADOFSTATE LEVEL YOU'VE CREATED A MECHANISM THAT IS HARD TO
ESCAPE A MECHANISM TO CREATE PRESSURE TO PRODUCE SOME RESULTS

IF THE TALKS DEFY THE ODDS AND SUCCEED IN HELPING TO OPEN THE JAPANESE
MARKET THIS PAST WEEKEND WILL TURN OUT TO BE A MEMORABLE ONE IN
USJAPANESE RELATIONS JUST THREE WEEKS AGO MR MIYAZAWA'S POLITICAL
CAREER APPEARED TO HAVE ENDED AS HE WAS SEEN ON TV TEARFULLY SITTING THROUGH
A STREAM OF DENUNCIATIONS FROM FELLOW POLITICIANS AND A VOTE OF
NOCONFIDENCE

A WEEK AND A HALF AFTER MR MIYAZAWA'S POLITICAL DEFEAT US NEGOTIATORS
ARRIVED HOPING TO FINISH WORK BEFORE THE JULY DEADLINE SET IN APRIL BY
MESSRS MIYAZAWA AND CLINTON THEY LEFT EMPTYHANDED BUT THE DAY AFTER THEY
LEFT MR MIYAZAWA SUMMONED JAPAN'S TOP BUREAUCRATS AND IMPLORED THEM TO
KEEP TRYING MOST DIDN'T TAKE IT SERIOUSLY SAYS ONE BUREAUCRAT

YET MR CUTTER HAD BEEN HOME ONLY AN HOUR WHEN KOICHIRO MATSUURA A SENIOR
OFFICIAL IN THE FOREIGNAFFAIRS MINISTRY THE ONE MINISTRY ALLIED WITH THE
PRIME MINISTER TELEPHONED AT 3 AM TO ASK THAT THE TALKS RESUME JAPAN'S
AMBASSADOR TO THE US TAKAKAZU KURIYAMA MADE A SIMILAR PLEA IN VISITS TO
TREASURY SECRETARY LLOYD BENTSEN SECRETARY OF STATE WARREN CHRISTOPHER AND
OTHERS HE GOT A CHILLY RECEPTION US OFFICIALS TOLD REPORTERS THAT THEY
DIDN'T EXPECT PROGRESS UNTIL JAPAN HAD A NEW GOVERNMENT THAT FURTHER
STIFFENED THE JAPANESE BUREAUCRATS' RESOLVE

THEN MR MIYAZAWA DID SOMETHING RARE FOR A JAPANESE PRIME MINISTER HE SENT
MR CLINTON A PERSONAL LETTER ON JULY 2 SAYING THAT WHILE JAPAN WOULDN'T
ACCEPT NUMERICAL TARGETS HE WOULD ACCEPT ILLUSTRATIVE CRITERIA TO MEASURE
PROGRESS IN REDUCING THE BILATERAL TRADE IMBALANCE THE BUREAUCRATS WERE
SEETHING WE DID NOT THINK IT WISE TO REINITIATE THE TALKS SAYS ONE BUT
MR MIYAZAWA FINALLY PREVAILED BECAUSE WE COULDN'T STOP HIM FROM SENDING A
LETTER US OFFICIALS SAY MR CLINTON FOUND THE PLEA FROM THE HOST OF THE
G7 SUMMIT IMPOSSIBLE TO REJECT

MR MIYAZAWA MAY HAVE BEEN ACTING NOT ONLY TO SALVAGE HIS OWN REPUTATION
BUT TO DEFEND HIS LIBERAL DEMOCRATIC PARTY AGAINST ITS MOST SERIOUS THREAT
EVER HOBBLED BY SCANDALS AND DEFECTIONS AFTER A BITTER FIGHT OVER POLITICAL
REFORM THE LDP COULD LOSE CONTROL OF THE GOVERNMENT IN SUNDAY'S ELECTIONS
THE LDP'S FOURDECADE REIGN HAS RESTED IN PART ON ITS CLAIM THAT IT WAS THE
ONLY PARTY THAT COULD MANAGE THE RELATIONSHIP AS THE ALLIANCE WITH THE
US IS CALLED HERE

BUT THE JAPANESE BUREAUCRACY WASN'T YET ON BOARD MR CLINTON'S AIDES
QUICKLY BRIEFED HIM BEFORE HE MET WITH MR MIYAZAWA ON TUESDAY AFTERNOON
ADVISED BY AIDES THAT THE PRIME MINISTER MIGHT WANT TO RESOLVE THE BIG
ISSUES HIMSELF BUT THE PRIME MINISTER WASN'T READY THE FIRST TWO DAYS OF
MEETINGS BETWEEN THE US AND JAPANESE DELEGATIONS WERE FRUITLESS NONE OF
THE MINISTRIES MADE INTENSIVE EFFORTS TO COME UP WITH NEW PROPOSALS ONE
JAPANESE NEGOTIATOR RECALLS

ONCE AGAIN MR MIYAZAWA IMPLORED HIS GOVERNMENT TO PUSH FORWARD EVEN
THOUGH THE SUMMIT KEPT HIM BUSY NEARLY ALL DAY AND MUCH OF THE EVENING HE
WANTED TO GET INFORMATION TWO TO THREE TIMES A DAY HE MADE CLEAR
SUGGESTIONS TO GO THIS WAY OR THAT SAYS A SENIOR MITI OFFICIAL WHO
DESCRIBES THE PREMIER'S BEHAVIOR AS VERY UNUSUAL THE FOREIGN MINISTRY
MOST CONCERNED ABOUT PRESERVING THE USJAPAN RELATIONSHIP TOOK MR
MIYAZAWA'S SIDE THE FINANCE MINISTRY FOUGHT HARD TO DEFLECT US DEMANDS
FOR PROMISES TO BOOST GOVERNMENT SPENDING A WAY TO CUT THE TRADE SURPLUS
BY INCREASING DEMAND FOR IMPORTS MITI RESPONSIBLE FOR JAPAN'S INDUSTRIES
WANTED TO AVOID MAKING ANY COMMITMENTS TO INCREASE IMPORTS IN SPECIFIC
SECTORS PARTICULARLY AUTO PARTS AND BEGGED FOR MORE TIME

ON WEDNESDAY EVENING ONE US NEGOTIATOR PUT THE ODDS OF AN AGREEMENT AT
LESS THAN 50 MESSRS ALTMAN AND CUTTER AND THE REST OF THE US TEAM WENT
OFF TO WATCH A YOMIURI GIANTS BASEBALL GAME RETURNING IN TIME FOR A
MIDNIGHT MEETING BETWEEN MESSRS CUTTER AND MATSUURA THEN MR MIYAZAWA
PROPOSED THE TALKS RECONVENE AT A DIFFERENT LEVEL MR OWADA APPROACHED MR
CLINTON'S NATIONAL SECURITY ADVISER ANTHONY LAKE WHO HAD PLAYED LITTLE
ROLE BEFORE THEN MESSRS LAKE ALTMAN AND CUTTER AND ROBERT RUBIN THE
NATIONAL ECONOMIC ADVISER OPENED TALKS ON THE BIG ISSUES WITH MR OWADA AT
THE NEW OTANI HOTEL MS BARSHEFSKY LED A SEPARATE TEAM WORKING ON THE
SECTORSPECIFIC ISSUES AT THE AKASAKA PRINCE HOTEL

FINALLY THE TALKS BEGAN TO INCH TOWARD COMPROMISE BUT IN DISAGREEMENTS
THAT PARALLELED THOSE ON THE JAPANESE SIDE SOME US OFFICIALS 
PARTICULARLY THOSE FROM THE TREASURY AND THE US TRADE REPRESENTATIVE'S
OFFICE WERE DETERMINED TO DRIVE A HARD BARGAIN SOME FOREIGNPOLICY
PROFESSIONALS WERE EAGER TO CLOSE A DEAL AT ONE POINT MR OWADA ACCUSED
MR ALTMAN OF BEING A BANANA SALESMAN IT WASN'T INTENDED AS A COMPLIMENT
FROM THEN ON THE US SIDE DESCRIBED EACH OF ITS CONCESSIONS AS A BANANA

US NEGOTIATORS SENSED THAT THE JAPANESE DESPERATELY WANTED AN AGREEMENT
PREFERABLY BEFORE A 6 PM FRIDAY NEWS CONFERENCE SCHEDULED FOR MESSRS
MIYAZAWA AND CLINTON BUT THE US ARGUED THAT THE TRUE DEADLINE WAS
SATURDAY MORNING WHEN THE PRESIDENT WAS TO LEAVE FOR KOREA ALTHOUGH THE
TWO SIDES WERE CLOSE ON FRIDAY AFTERNOON US NEGOTIATORS SAID THERE WOULD
BE NO ANNOUNCEMENT UNTIL EVERYTHING WAS SETTLED FIGURING THAT THERE WOULD
BE NO MORE COMPROMISES AFTER A PUBLIC ANNOUNCEMENT AT THE PRESS CONFERENCE
MR MIYAZAWA SOUNDED OPTIMISTIC BUT MR CLINTON WAS CAUTIOUS THE PRESIDENT
AND HIS ADVISER DAVID GERGEN BOTH TOLD REPORTERS THAT IT WAS UNLIKELY
THAT THERE WOULD BE A RESOLUTION

AS NEGOTIATORS WORKED FRANTICALLY MR CLINTON ACCEPTED MR MIYAZAWA'S
INVITATION TO HAVE SUSHI AT THE HOTEL OKURA FRIDAY NIGHT AS THE TWO MEN
POSED FOR PHOTOGRAPHERS A REPORTER ASKED IF THEY EXPECTED TO HAVE AN
AGREEMENT BY DESSERT NO DESSERT WITH SUSHI REPLIED MR MIYAZAWA WHO
SPEAKS FLUENT ENGLISH

AFTER THE DINNER MR CLINTON RETURNED TO HIS PENTHOUSE PUT HIS FEET ON A
TABLE AND A CIGAR IN HIS MOUTH AND READ THE DRAFT AGREEMENT ALL THE
NEGOTIATORS JOINED HIM AS DID TRADE REPRESENTATIVE MICKEY KANTOR AND MR
CHRISTOPHER MR BENTSEN HAD GONE TO BED AFTER GIVING MR ALTMAN HIS PROXY
THE PRESIDENT ASKED EACH ONE FOR HIS OR HER OPINION THE UNANIMOUS ADVICE
WAS TO GO FOR IT THE PRESIDENT WENT TO BED BUT IN THE SOUTH LOBBY OF THE
OKURA THE LASTMINUTE HAGGLING OVER DETAILS WENT ON ALL NIGHT LONG

THE NEXT MORNING JUST BEFORE MESSRS MIYAZAWA AND CLINTON WERE TO APPEAR
BEFORE THE CAMERAS TO UNVEIL THEIR AGREEMENT MR CLINTON INSISTED ON SEEING
A COPY OF THE PRIME MINISTER'S STATEMENT THE JAPANESE SENT ONE OVER IN
JAPANESE THE US EMBASSY QUICKLY SUMMONED A TRANSLATOR JIM ZUMWALT A
NEPHEW OF THE RETIRED ADMIRAL

THE NEWS CONFERENCE WENT OFF WITHOUT A HITCH AND MR CLINTON ENDED HIS
STATEMENT BY AD LIBBING AN EFFUSIVE TRIBUTE TO THE PRIME MINISTER WHICH
MIGHT EVEN BE SEEN AS AN ENDORSEMENT OF MR MIYAZAWA'S APPARENT HOPES OF
REMAINING IN OFFICE AFTER THE ELECTIONS HE HAS SHOWN WISDOM DETERMINATION
AND GENUINE LEADERSHIP  I DO NOT BELIEVE THAT THIS DAY WOULD HAVE COME
TO PASS HAD IT NOT BEEN FOR PRIME MINISTER MIYAZAWA

AS MR MIYAZAWA LISTENED TO THE TRANSLATION HE AND MR CLINTON LEANED
CLOSER TO EACH OTHER AND EXCHANGED A WARM GLANCE WHEN THE TRANSLATOR
FINISHED MR MIYAZAWA EXTENDED HIS HAND AND SAID THANK YOU VERY MUCH
VERY KIND 9307120092 930712 REVIEW & OUTLOOK EDITORIAL JUDICIAL
DISGUST

WE TOOK NOTE RECENTLY OF A REMARKABLE DECISION BY FEDERAL JUDGE ROGER VINSON
OF FLORIDA IN WHICH HE LAMBASTED THE US ARMY CORPS OF ENGINEERS FOR ITS
ARBITRARY AND DRACONIAN ENFORCEMENT OF WETLANDS REGULATIONS NOW ANOTHER
FEDERAL JUDGE HAS STEPPED FORWARD AND DECLARED THAT THE ENVIRONMENTAL
PROTECTION AGENCY IS OVERSTEPPING THE LIMITS A FREE SOCIETY SHOULD PLACE ON
GOVERNMENT

JUDGE STEPHEN N LIMBAUGH OF THE EASTERN DISTRICT OF MISSOURI HAS ISSUED
AN ORDER DEMANDING THAT THE EPA OBEY A CONSENT DECREE IT REACHED IN 1991 ON
THE CLEANUP OF A SUPERFUND SITE IT IS ONE OF THE FIRST TIMES THAT A JUDGE
HAS PREVENTED THE EPA FROM STEAMROLLERING PRIVATE PROPERTY RIGHTS IN A
SUPERFUND CASE

THE CONTROVERSY BEGAN IN 1987 WHEN THE EPA FOUND THAT THE SOIL UNDER A
1970S PESTICIDE FACTORY NEAR CAPE GIRARDEAU WAS CONTAMINATED IN 1991 THE
EPA SUED THE KNOTE FAMILY A MEMBER HAD OWNED THE FACTORY TO RECOVER THE
ESTIMATED 2 MILLION CLEANUP COST THE EPA AND THE KNOTES NEGOTIATED A
CONSENT DECREE IN JUDGE LIMBAUGH'S COURT IN WHICH IT WAS AGREED THAT THE
MAIN FACTORY BUILDING WOULD BE DECONTAMINATED BUT NOT DESTROYED

EARLY THIS YEAR THE EPA RENEGED ON THE AGREEMENT AND ANNOUNCED IT WOULD
DESTROY THE BUILDING ANYWAY CLAIMING THAT WOULD SAVE MONEY THE KNOTES
PROTESTED POINTING OUT THAT PESTICIDES HADN'T BEEN MADE IN THE BUILDING FOR
16 YEARS AND THAT IT COULD BE USED FOR OTHER COMMERCIAL PURPOSES EPA
OFFICIALS DISAGREED AND SAID THEY HAD NO OBLIGATION TO DISCUSS THE MATTER
FURTHER THE AGENCY CLAIMED THAT BY DELAYING DEMOLITION THE KNOTES WERE
THREATENING THE HEALTH SAFETY AND WELFARE OF THE GENERAL PUBLIC

THAT WAS TOO MUCH FOR JUDGE LIMBAUGH WHO DEMANDED THAT THE EPA STOP IT IS
CLEAR TO THE COURT THAT THE EPA'S CONCERN' ABOUT PUBLIC SAFETY AND THE
INCREASING COSTS TO TAXPAYERS IS INSINCERE AND SANCTIMONIOUS HE WROTE
THE EPA'S REFUSAL TO COMMUNICATE WITH THE DEFENDANTS ABOUT THE DEMOLITION
OF THEIR BUILDING AND ITS ARROGANT PONTIFICATING REFLECT NOTHING LESS THAN
AN ATTITUDE OF SUPREMACY TANTAMOUNT TO CONTEMPT

JUDGE LIMBAUGH WENT ON TO NOTE THAT THE EPA'S FACTUAL SUPPORT FOR DECIDING
THE BUILDING SHOULD BE DESTROYED MAY NOT EXIST TESTS OF THE BUILDING WERE
MADE TO SEE IF IT WAS CONTAMINATED BUT THEY WERE NEVER ANALYZED DUE TO
BUDGET CONSTRAINTS

THE EPA'S TOXIC WASTE CLEANUP EFFORTS ARE COMMENDABLE JUDGE LIMBAUGH
NOTED BUT THAT DOES NOT MAKE IT AN ADMINISTRATIVE DEITY CONGRESS GAVE
THE EPA GREAT LEEWAY IN ENFORCING SUPERFUND REGULATIONS BUT IT DID NOT
INTEND TO GIVE THE EPA UNFETTERED AUTHORITY TO DECEIVE AND BULLY PEOPLE INTO
SUBMISSION

WE TRIED CALLING THE EPA TO GET THEIR STORY BUT LEARNED THAT THE MAN IN
CHARGE OF THE CASE HAS BEEN TRANSFERRED NO ONE ELSE WAS WILLING TO DEFEND
WHAT THE LOCAL PAPER THE SOUTHEAST MISSOURIAN CALLS THE EPA'S WATER
TORTURE METHODOLOGY

OUR EXPERIENCE HAS BEEN THAT SINCE IT CAN USE THE EXCUSE THAT IT IS ENGAGED
IN ENVIRONMENTAL PROTECTION THE EPA OFTEN LAPSES INTO ROGUE REGULATORY
BEHAVIOR ITS HANDLING OF THE SUPERFUND PROGRAM IS TYPICAL IT HAS BECOME
WHAT ONE CRITIC CALLS AN EXPENSIVE DUMP SITE BEAUTIFICATION EXERCISE WITH
THE EPA SIMPLY FINDING WHOEVER HAS THE DEEPEST POCKETS AND FORCING THEM TO
PAY UP REGARDLESS OF HOW RESPONSIBLE THEY ARE

JUDGE LIMBAUGH HAS FINALLY BLOWN THE WHISTLE ON SOME OF THE AGENCY'S
ARROGANT PRACTICES WE HOPE HIS DECISION LEADS TO A WIDER REEVALUATION OF
THE ENTIRE SUPERFUND PROGRAM 9307120091 930712 MARKETING & MEDIA 
ADVERTISING NIKE WILL PREMIERE COMMERCIAL IN SPANISH WITH ENGLISH
SUBTITLES  BY KEVIN GOLDMAN

SPORTS FANS WHO TEND TO AVOID ARTHOUSE MOVIES ARE IN FOR AN UNFAMILIAR
EXPERIENCE TOMORROW DURING BASEBALL'S ALLSTAR GAME SUBTITLES

NIKE PLANS TO PREMIERE DURING CBS'S TELECAST OF THE GAME A 30SECOND AD THAT
IS ENTIRELY IN SPANISH WITH ENGLISH SUBTITLES THE SNEAKER MAKER SAYS IT IS
THE FIRST TIME THAT A SPANISHLANGUAGE COMMERCIAL WILL BE AIRED ON A MAJOR
ENGLISHSPEAKING BROADCAST NETWORK

THE COMMERCIAL PRODUCED BY NIKE AD AGENCY WIEDEN & KENNEDY WILL BE SEEN
TWICE DURING THE ALLSTAR GAME THE TRADITIONAL MIDPOINT BREAK OF THE MAJOR
LEAGUE BASEBALL SEASON THE COMMERCIAL ALSO WILL BE SEEN ON UNIVISION AND
TELEMUNDO THE TWO SPANISHLANGUAGE NETWORKS WITHOUT SUBTITLES

CLEARLY NIKE IS HOPING THE SPOT LA TIERRA DE MEDIOCAMPISTAS OR LAND OF
THE SHORTSTOP WHICH WAS FILMED IN THE DOMINICAN REPUBLIC WILL BREAK
THROUGH THE CLUTTER BUT NIKE NEEDS TO ACCOMPLISH MORE THAN THAT THE
BEAVERTON OREBASED COMPANY SURPRISED WALL STREET LAST MONTH WHEN IT SAID
FISCAL 1994 WOULDN'T MEET ANALYSTS' CONSENSUS EARNINGS PROJECTIONS AND LAST
WEEK NIKE RELEASED EARNINGS THAT WERE SLIGHTLY BELOW ANALYSTS' EXPECTATIONS

IN THE MOST RECENT CALENDAR YEAR NIKE HAD 18 BILLION IN SALES A 30
SHARE OF THE 6 BILLION ATHLETIC SHOE MARKET ITS NEAREST RIVAL REEBOK
INTERNATIONAL CAPTURED SALES OF 15 BILLION AND A 24 SHARE OF THE MARKET
ACCORDING TO SPORTING GOODS INTELLIGENCE A NEWSLETTER IN 1992 NIKE SPENT
OVER 100 MILLION TO PUSH ITS FOOTWEAR AND APPAREL ACCORDING TO COMPANY
OFFICIALS AND IT SHOWS NO SIGNS OF SLOWING DOWN

THE NEW AD BLITZ ALSO COMES AS DEMAND FOR SNEAKERS AS A FASHION ITEM SEEMS
TO BE ON THE DECLINE NIKE IS UNDER PRESSURE FROM INCREASINGLY POPULAR
INDUSTRIALINSPIRED SHOES LIKE DOC MARTENS WHICH ARE BEGINNING TO BE SOLD
ALONGSIDE NIKES AND OTHER SNEAKERS IN ATHLETIC FOOTWEAR SHOPS

BUT NIKE CHAIRMAN PHILIP KNIGHT STILL SEES SUBSTANTIAL GROWTH OPPORTUNITIES
AROUND THE WORLD HE SAID IN AN INTERVIEW LAST WEEK INDEED THE
SPANISHLANGUAGE AD WILL BE SEEN NOT ONLY ON CBS DOMESTICALLY TOMORROW BUT
ALSO ON NETWORKS IN CENTRAL AMERICA AND SOUTH AMERICA WHICH ARE CARRYING
THE ALLSTAR GAME THE SPOT WILL CONTINUE TO AIR ON ENGLISHSPEAKING
BROADCAST AND CABLE NETWORKS THROUGH THE FALL

THE AD DOESN'T SPOTLIGHT AN ATHLETIC SHOE OR CELEBRITY ATHLETE BUT DOES
FEATURE RAPIDEDITS OF KIDS PLAYING BASEBALL THE NARRATOR WHO WAS ACTUALLY
NIKE'S DRIVER THROUGH THE THREE DAYS OF FILMING AND WHO DIDN'T HAVE PREVIOUS
EXPERIENCE IN VOICEOVERS TELLS VIEWERS SEVENTY SHORTSTOPS IN ORGANIZED
BASEBALL ARE FROM THE DOMINICAN REPUBLIC SO WHEN YOU SEE A GREAT DOMINICAN
SHORTSTOP GO FOR THE BALL AND HEAR BOY HE HAD TO GO FAR INTO THE HOLE FOR
THAT ONE' YOU'LL KNOW HOW FAR IS FAR

NIKE PRODUCED THE COMMERCIAL BECAUSE IT WANTED TO TOUCH ON THE PASSION OF
THE GAME SAYS SCOTT BEDBURY NIKE'S DIRECTOR OF ADVERTISING BASEBALL HAS
BEEN DEFINED IN LARGE PART FOR THE OUTRAGEOUS SALARIES AND THE MISCONDUCT OF
SOME PLAYERS I POINT FINGERS AT A LOT IN THE INDUSTRY INCLUDING NIKE FOR
NOT HIGHLIGHTING THE BEAUTY OF THE GAME

MR BEDBURY ADMITS AIRING A SPANISHSPEAKING SPOT EVEN ONE WITH SUBTITLES
ON A NETWORK SUCH AS CBS IS RISKY BUT IT DOESN'T BOTHER ME THAT A
NUMBER OF PEOPLE WON'T UNDERSTAND IT IT'S HIGH TIME THAT ADVERTISERS HAD
THE COURAGE TO SPEAK DIRECTLY TO HISPANICS FOR SOMETHING THAT IS IMPORTANT
TO THEM HE SAYS IN FACT MR BEDBURY SAYS HE CONSIDERED RUNNING THE AD
MINUS THE SUBTITLES BUT DIDN'T WANT TO LET THE NONSPANISHSPEAKING PUBLIC
BE TOTALLY IN THE DARK AS TO WHAT THE AD IS ABOUT

FOR APPEARING IN THE SPOT NIKE PAID THE KIDS AN UNSPECIFIED AMOUNT AND GAVE
THEM BASEBALL GLOVES BATS AND WHAT ELSE NIKE SHOES

THE SPANISHLANGUAGE AD WHICH WILL AIR BETWEEN THE FIFTH AND SEVENTH
INNINGS IS TAKING ITS PLACE BESIDE NEW ENGLISHSPEAKING SPOTS STARRING BO
JACKSON OF THE CHICAGO WHITE SOX ONE AD TAKES PLACE IN A BARBER SHOP AND
FEATURES OLD GEEZERS TRYING TO TOP ONE ANOTHER'S STORIES ABOUT THE BOMAN'S
ATHLETIC CONQUESTS MR JACKSON IS SEEN ON A TV SET IN THE BARBER SHOP
ROLLING HIS EYES IN DISBELIEF AS IF HE IS MAGICALLY EAVESDROPPING

THE ORIGINAL SETTING FOR THAT AD WAS A BAR BUT SAYS MR BEDBURY ONCE NIKE
STARTING LOOKING AT NETWORK GUIDELINES FOR SUCH A SCENARIO IT DROPPED THE
IDEA IF BEER ISN'T THE PRIMARY PRODUCT BEING ADVERTISED THE COMMERCIAL
CAN'T SHOW A BEER ON A COUNTER OR HAVE ANYONE UTTER THE WORDS BAR OR
TAVERN

BUT THE AD THAT MADISON AVENUE MAY ENJOY THE BEST FEATURES A MAN TURNING
DOWN THE VOLUME OF A TELEVISION SET AS A NEW BO JACKSON AD BEGINS HE
COMMENTS TO FRIENDS THAT THE AD IS BORING THAT SETS OFF A DEBATE ON
ADVERTISING WHERE THE PALS PLAY AD CRITICS

ALL OF THE COMMERCIALS HAVE SOMETHING IN COMMON THEY ALL END WITH NIKE
JUST DO IT THE COMPANY'S SLOGAN OF SIX YEARS THE SLOGAN IS NEVER
TRANSLATED TO OTHER LANGUAGES SAYS MR KNIGHT AND IT HAS BEEN SPOKEN ONLY
TWICE

IF NOT HANDLED RIGHT OFFERS MR BEDBURY BY WAY OF EXPLANATION THE WORDS
CAN COME OFF AS AN UNPLEASANT COMMAND

FOUR FINALISTS HAVE EMERGED IN THE PITCH FOR THE NEW 30 MILLION KIA AUTO
ACCOUNT THEY ARE GOLDBERG MOSER O'NEILL OF SAN FRANCISCO JORDAN MCGRATH
CASE & TAYLOR OF NEW YORK STEIN ROBAIRE HELM OF LOS ANGELES AND THE
TWOAGENCY TEAM OF KRESSER CRAIG OF SANTA MONICA CALIF AND WARING &
LAROSA OF NEW YORK

KRESSER CRAIG AND WARING & LAROSA ARE PITCHING AS IF THEY WERE A SINGLE
AGENCY EXECUTIVES AT THE SHOPS SAID THE AGENCIES ARE IN TALKS TO MERGE
INTO A SINGLE 175 MILLION AGENCY WHICH THEY SAID THEY PLAN TO DO EVEN IF
THEY DON'T WIN THE ACCOUNT

KIA MOTORS NORTH AMERICA IRVINE CALIF IS A UNIT OF KIA MOTORS CORP OF
SEOUL SOUTH KOREA

SARA LEE ACCOUNT SARA LEE CORP OF CHICAGO AWARDED ADVERTISING FOR ARIS
ISOTONER GLOVES AND SLIPPERS AND MARK CROSS LEATHER GOODS TO NEW YORK AGENCY
KIRSHENBAUM & BOND AFTER A REVIEW THAT INCLUDED MCCABE & CO OF NEW YORK AND
THE NEW YORK OFFICE OF THE FRENCH AGENCY NETWORK PUBLICIS THE MOVE
CONSOLIDATES 9 MILLION IN SARA LEE BILLINGS AT K&B WHICH HAS HANDLED SARA
LEE'S COACH HANDBAG LINE FOR TWO YEARS INTERPUBLIC GROUP'S LINTAS CONTINUES
TO BUY MEDIA

BROWNFORMAN BROWNFORMAN CORP OF LOUISVILLE KY TAPPED CARMICHAEL LYNCH
ADVERTISING OF MINNEAPOLIS TO CREATE ADS FOR ITS KORBEL CHAMPAGNE AND BOLLA
WINE BRANDS WITH ESTIMATED BILLINGS OF ABOUT 5 MILLION THE PREVIOUS
AGENCY WAS FOOTE CONE & BELDING'S NEW YORK OFFICE FCB/LEBER KATZ PARTNERS
CARMICHAEL BESTED ANOTHER FINALIST BAYER BESS VANDERWARKER OF CHICAGO

WHO'S NEWS FRANKFURT GIPS BALKIND OF NEW YORK NAMED PHILIP DURBROW A VICE
CHAIRMAN MR DURBROW 52 WILL HEAD UP THE AGENCY'S CORPORATE IDENTITY
OPERATIONS AND OPEN A SAN FRANCISCO OFFICE 9307120090 930712 THREE CASINO
FIRMS SUBMIT SEPARATE BIDS FOR PROJECTS IN GREECE  A WALL STREET
JOURNAL NEWS ROUNDUP

THREE BIG US CASINO AND LODGING COMPANIES SUBMITTED BIDS FOR PLANNED
CASINO PROJECTS IN GREECE REFLECTING INCREASED INTEREST BY DOMESTIC
OPERATORS IN THE GLOBAL GAMBLING MARKET

HILTON HOTELS CORP BEVERLY HILLS CALIF CAESARS WORLD INC OF LOS
ANGELES AND ITT CORP'S ITT SHERATON UNIT OF BOSTON EACH SUBMITTED PROPOSALS
FOR VARIOUS CASINO SITES BY FRIDAY'S DEADLINE

HILTON WHICH OPERATES INTERNATIONAL HOTELCASINOS IN AUSTRALIA AND TURKEY
BID ON A HOTEL IN DOWNTOWN ATHENS AND OTHERS IN THE NEARBY RESORT AREA OF
VOULIAGMEMI CAESARS AGREED TO SERVE AS A MANAGER FOR INTERGLOBE CASINO SA
A EUROPEAN CONCERN TO BID ON PROJECTS IN ATHENS CORFU AND THESSALONIKI
ITT SAID IT SUBMITTED PROPOSALS FOR PROJECTS IN ATHENS AND CRETE

NONE OF THE COMPANIES RELEASED SPECIFIC INFORMATION ON THEIR PROPOSALS
WHICH THEY SAID REFLECTED THE REQUEST OF GREEK OFFICIALS COMPANY EXECUTIVES
SAID OTHER EUROPEAN BIDDERS ARE BELIEVED TO HAVE SUBMITTED PROPOSALS BUT
EFFORTS TO LOCATE AN OFFICIAL LIST OF BIDDERS WERE UNSUCCESSFUL
9307120089 930712 TECHNOLOGY & HEALTH BIOPHARMACEUTICS INC PLEADS
GUILTY IN CASE OVER FALSE DRUG DATA

BALTIMORE FEDERAL PROSECUTORS SAID GENERIC DRUG MAKER BIOPHARMACEUTICS
INC PLEADED GUILTY TO FELONY CHARGES OF SUBMITTING FALSE INFORMATION IN
SEEKING GOVERNMENT APPROVAL TO MARKET VARIOUS DRUGS

THE US ATTORNEY'S OFFICE FOR MARYLAND SAID BIOPHARMACEUTICS WAS SENTENCED
TO PAY A 350000 CRIMINAL FINE THE COMPANY ADMITTED THAT IT KNOWINGLY
FALSIFIED INFORMATION RELATING TO THE RESEARCH AND DEVELOPMENT OF CERTAIN
DRUGS FOR WHICH IT WAS SEEKING APPROVAL FROM THE FOOD AND DRUG
ADMINISTRATION

IN A SEPARATE STATEMENT THE BELLPORT NY COMPANY SAID IT HAS AGREED TO
COOPERATE FULLY WITH THE GOVERNMENT AND THE FDA AND THAT THE MISCONDUCT WAS
COMMITTED BY FORMER OFFICERS AND EMPLOYEES

IN SUPPORT OF ITS APPLICATION FOR THE ANTIBIOTIC CLINDAMYCIN HYDROCHLORIDE
FOR EXAMPLE BIOPHARMACEUTICS CLAIMED TO HAVE MADE THE DRUG AT A TIME WHEN
IT DIDN'T HAVE ENOUGH RAW MATERIALS TO PRODUCE IT PROSECUTORS SAID

NONE OF BIOPHARMACEUTICS APPLICATIONS WERE EVER APPROVED BY THE FDA IN
1991 THE JUSTICE DEPARTMENT OBTAINED A TEMPORARY RESTRAINING ORDER
PROHIBITING THE COMPANY FROM MAKING ANY MORE GENERIC DRUGS

THE BIOPHARMACEUTICS CASE RESULTED FROM A CONTINUING INVESTIGATION INTO THE
GENERIC DRUG INDUSTRY BY THE JUSTICE DEPARTMENT AND THE FDA 9307120088
930712 DIVIDEND NEWS GOLDEN OIL CO

GOLDEN OIL CO IN AN EFFORT TO INCREASE THE VALUE PER SHARE AND REDUCE
ADMININSTRATIVE EXPENSES SAID IT APPROVED A REVERSE STOCK SPLIT OF
1FOR50 EFFECTIVE WEDNESDAY THE SPLIT WILL BE FOLLOWED WITH A DIVIDEND OF
SIX SHARES FOR EACH COMMON SHARE OUTSTANDING THE COMPANY SAID IN HOUSTON
OUT OF 8000 SHAREHOLDERS 3000 OWNED LESS THAN 50 SHARES SAID A GOLDEN
SPOKESMAN THE COMPANY ISN'T ISSUING ANY FRACTIONAL SHARES THUS SAVING
THOSE ADMINISTRATIVE EXPENSES HE SAID THE OIL AND GAS EXPLORATION AND
PRODUCTION COMPANY SAID THE SPLIT AND DIVIDEND WOULD ENHANCE THE
MARKETABILITY OF THE SHARES AND STREAMLINE THE COMPANY'S CAPITALIZATION
POSTSPLIT AND AFTER THE SHARE DIVIDEND THE NUMBER OF COMMON SHARES
OUTSTANDING WILL BE 1404290 COMPARED WITH 10030647 BEFORE THE CHANGES
9307120086 930712 GM TO STRESS VALUE PRICING FOR '94 MODELS  
CAR MAKER PLANS TO OFFER BETTEREQUIPPED AUTOS TO BOOST MARKET SHARE
NAME  BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET
JOURNAL

DETROIT GENERAL MOTORS CORP WILL MAKE A HARD TURN TOWARD VALUE PRICING
IN THE 1994 MODEL YEAR IN THE HOPE THAT OFFERING BETTEREQUIPPED CARS AT
LOWER PRICES WILL INCREASE MARKET SHARE AND CUT MANUFACTURING COSTS

AS PART OF THE NEW STRATEGY WHICH GM MAY OFFICIALLY INTRODUCE THIS WEEK
EACH OF GM'S OLDLINE NAMEPLATES CHEVROLET PONTIAC BUICK OLDSMOBILE
AND CADILLAC WILL OFFER WELLEQUIPPED 1994 MODELS THAT IN MOST CASES WILL
COST LESS THAN SIMILARLY EQUIPPED 1993 MODELS DEALERS SAY DEALERS EXPECT
GM TO PROMOTE THE EXPANSION OF ITS VALUEPRICING EXPERIMENT VIGOROUSLY
NATIONWIDE BUT PARTICULARLY IN CALIFORNIA WHERE GM'S MARKET SHARE LAGS
BEHIND THE REST OF THE NATION

THEY'RE GOING TO POUND THE TAR OUT OF THIS SAYS JOHN BERGSTROM WHO OWNS
SEVERAL GM FRANCHISES IN WISCONSIN

IF THE NO 1 AUTO MAKER SUCCEEDS IN MAKING VALUE PRICING ITS MAINSTREAM
MARKETING STRATEGY IT COULD PROFOUNDLY CHANGE THE WAY CARS ARE SOLD IN THE
US THE EXPERIMENTS IN VALUE PRICING USUALLY ACCOMPANIED BY A
NOHAGGLE SALES APPROACH THAT GM AND ITS RIVALS HAVE USED TO BOOST SALES
OF SOME MODELS DURING THE PAST TWO YEARS HAVE PROVEN POPULAR BY DROPPING
THE PRICE OF A WELLEQUIPPED VERSION OF THE BUICK LESABRE TO 18995 FROM
ABOUT 21000 FOR A SIMILARLY EQUIPPED CAR GM BOOSTED SALES OF THE MODEL BY
15 THIS YEAR FORD MOTOR CO HAD EVEN GREATER SUCCESS WITH A VALUEPRICED
VERSION OF ITS THUNDERBIRD COUPE AND PLANS TO CONTINUE THE STRATEGY THIS
FALL

MOREOVER SURVEY AFTER SURVEY HAS FOUND CONSUMERS WEARY OF THE TRADITIONAL
US CARBUYING EXPERIENCE STILL REDOLENT OF HORSETRADING IN THE OLD WEST
AFTER MONTHS OF INTERNAL DEBATE GM OFFICIALS ARE CONVINCED THAT VALUE
PRICING IS THE TICKET TO STOP A DECADELONG SLIDE IN MARKET SHARE AND BOOST
PROFITS IN GM'S TROUBLED NORTH AMERICAN CAR OPERATIONS

THE HOPE FOR IMPROVED PROFIT IS LINKED TO GM'S DECISION TO LARGELY ABANDON
THE MENTALITY OF A CAR FOR EVERY PURSE AND PURPOSE WHICH DROVE MARKETING
AND MANUFACTURING COSTS OUT OF CONTROL IN THE PAST DECADE NOW GM WILL
SLASH THE NUMBER OF DIFFERENT OPTION COMBINATIONS AVAILABLE IN KEY MODEL
LINES AND FOCUS ON SELLING MORE CARS THAT ARE ESSENTIALLY THE SAME DOING
THIS WILL HELP GM REDUCE COMPLEXITY IN ITS FACTORIES ELIMINATE LOWVOLUME
COMPONENTS AND THUS CUT MANUFACTURING COSTS

ANOTHER RESULT WILL BE TO ELIMINATE LOWPRICED STRIPPED MODELS FORCING
THE MINORITY OF CONSUMERS WHO BUY SUCH CARS TO MOVE UP TO BETTER EQUIPPED
AND HIGHERPRICED VALUE CARS

AT THE SAME TIME GM IS PRESSING DEALERS TO ACCEPT SLIMMER PROFIT MARGINS ON
THE VALUEPRICED MODELS SOME DEALERS HAVE OBJECTED BUT GM IS MOVING AHEAD
TO PUSH VALUE VERSIONS OF MOST OF ITS HIGHVOLUME CARS SUCH AS THE CADILLAC
DEVILLE VIRTUALLY ALL OLDSMOBILE MODELS AND BREADANDBUTTER CHEVROLETS
SUCH AS THE CAVALIER COMPACT THE LUMINA MIDSIZE CAR AND SMALL AND LARGE
PICKUPS GM'S OBJECTIVE IS TO MOVE FROM A STRATEGY OF HIGH STICKER PRICES
OFFSET BY BIG REBATES TO LOWER STICKER PRICES AND NO REBATES

A GM SPOKESMAN DECLINED TO COMMENT ON THE COMPANY'S 1994 PRICING PLANS
EXCEPT TO SAY THAT VALUE PRICING HAS BEEN VERY SUCCESSFUL FOR SOME 1993
MODELS THE SPOKESMAN ALSO DECLINED TO COMMENT ON WHETHER A NEWS CONFERENCE
SCHEDULED FOR TOMORROW WILL ADDRESS 1994 PRICING

BUT GM'S PONTIAC DIVISION ALREADY HAS TOLD DEALERS THAT IT WILL OFFER ONE
PACKAGE OF OPTIONS ON ITS 1994 GRAND PRIX COUPE MODELS DOWN FROM THREE OR
FOUR PACKAGES IN 1993 PONTIAC DEALERS ALSO ARE BEING WARNED TO SELL OUT
THEIR 1993 GRAND PRIXS BEFORE THE NEW MODEL YEAR BEGINS OCT 1 THE
IMPLICATION IS THAT THE 1994 MODELS EQUIPPED WITH DUAL AIRBAGS WILL BE
PRICED BELOW SIMILARLY EQUIPPED 1993 MODELS WHICH DON'T HAVE AIRBAGS
DEALERS SAY

GM ALSO IS EXPECTED TO PUT MORE EMPHASIS ON ENTICING CONSUMERS INTO
SHORTTERM LOWPAYMENT LEASES THE BETTER TO BREAK A STICKER SHOCK CYCLE
THAT HAS LED THE AVERAGE AMERICAN TO HOLD ONTO A CAR FOR NINE YEARS

IN CALIFORNIA GM DEALERS HAVE BEEN TOLD THE AUTO MAKER WILL MAKE VALUE
PRICING THE CORNERSTONE OF A MAJOR MARKETING BLITZ ALREADY GM IS HOLDING
TRAINING SESSIONS TO INDOCTRINATE DEALER SALES PEOPLE IN THE NEW APPROACH 
COMPLETE WITH TEAMWORK BUILDING EXERCISES SUCH AS GROUP ROPE CLIMBS
DEALERS SAY THE GOAL IS TO GET ALL OF GM'S DEALERSHIPS IN CALIFORNIA TO
EMULATE THE CUSTOMERFRIENDLY NOHAGGLE SALES STRATEGY USED BY GM'S SATURN
CORP SMALLCAR SUBSIDIARY

THEY RECOGNIZE GM HAS LOST A WHOLE GENERATION OF BUYERS IN CALIFORNIA
SAYS FRANK HALVORSON OWNER OF PROSPECT MOTORS A MULTIDIVISION GM
DEALERSHIP 9307120085 930712 WHO'S NEWS NWNL COS

NWNL COS MINNEAPOLIS JOHN H FLITTIE CHIEF OPERATING OFFICER OF THE
INSURANCE HOLDING COMPANY WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT
MR FLITTIE 56 YEARS OLD JOINED NWNL IN 1985 AS ITS FINANCIAL CHIEF AS
PRESIDENT HE SUCCEEDS JOHN G TURNER 53 WHO REMAINS CHAIRMAN AND CHIEF
EXECUTIVE OFFICER 9307120083 930712 CREDIT RATINGS

FEDERAL REALTY INVESTMENT TRUST CO BETHESDA MD STANDARD & POOR'S
CORP UPGRADED ITS RATINGS ON THE DEBT OF FEDERAL REALTY CITING AN IMPROVED
CAPITAL STRUCTURE AND STRONG PERFORMANCE AT ITS 44 SHOPPING CENTERS THE
ACTION AFFECTS 438 MILLION IN DEBT S&P RAISED THE RATINGS FOR THE REAL
ESTATE INVESTMENT TRUST'S CONVERTIBLE SUBORDINATED EURONOTES TO TRIPLEB
FROM TRIPLEBMINUS THE TRUST'S IMPLIED SENIOR DEBT RATING WAS RAISED TO
TRIPLEBPLUS FROM TRIPLEB FEDERAL REALTY REPORTED 1992 FUNDS FROM
OPERATIONS OF 30 MILLION THE TRUST SPECIALIZES IN THE ACQUISITION OF
OLDER WELLLOCATED CENTERS THAT CAN BE ENHANCED THROUGH RENOVATION AND
RECONFIGURATION

PHELPS DODGE CORP PHOENIX STANDARD & POOR'S CORP SAID IT RAISED ITS
DEBT RATING ON 500 MILLION OF PHELPS DODGE SENIOR DEBT THE DEBT HAD BEEN
ON CREDITWATCH WITH POSITIVE IMPLICATIONS SINCE FEB 1 THE AGENCY RAISED
THE RATING TO SINGLEA FROM SINGLEAMINUS FOLLOWING FINANCING OF THE
COMPANY'S NEW 80OWNED CHILEAN COPPER PROJECT AND THE SETTLEMENT OF LABOR
NEGOTIATIONS S&P SAID THE COMPANY'S CONSERVATIVE DEBT LOAD INCREASED
PRODUCTION FROM LOWCOST SOLVENTEXTRACTION METHODS AND SUCCESS AT KEEPING
PRODUCTION COSTS LOW ADDED TO THE AGENCY'S CONFIDENCE PHELPS DODGE IS A
MINING AND INDUSTRIAL PRODUCTS COMPANY 9307120082 930712 USX STEEL GROUP
 SEES SOLID PROFIT ON OPERATING BASIS  BY DANA MILBANK STAFF
REPORTER OF THE WALL STREET JOURNAL

PITTSBURGH USX CORP SAID ITS US STEEL GROUP WILL REPORT OPERATING
PROFIT OF 50 MILLION TO 60 MILLION FOR THE SECOND QUARTER SUPPORTING A
BELIEF THAT LARGE INTEGRATED STEELMAKERS ARE RETURNING TO PROFITABILITY

US STEEL WILL HOWEVER REPORT A NET LOSS FOR THE QUARTER DUE TO A PRETAX
CHARGE OF 600 MILLION RELATED TO A LAWSUIT INVOLVING A FORMER UNIT

THE FORECAST IS PART OF A SECURITIES AND EXCHANGE COMMISSION FILING RELATED
TO THE COMPANY'S PLANNED STOCK OFFERING OF NINE MILLION SHARES

THE COMPANY CITED HIGHER PRICES FOR ITS SHEET STEEL AND A FIRM ORDER RATE
BUT DIDN'T PROVIDE SALES OR NET FIGURES

IT'S THEIR FIRST SOLIDLY PROFITABLE QUARTER IN MANY QUARTERS SAID JORDAN
ESTRA AN ANALYST WITH MERRILL LYNCH & CO THEY'LL BE AMONG ONLY A FEW
INTEGRATED PRODUCERS TO HAVE THIS PROFIT HE CREDITED THE COMPANY'S LOWER
COSTS AND A HIGHMARGIN MIX OF PRODUCTS

MR ESTRA CALCULATED THAT THE OPERATINGPROFIT FORECAST ASSUMING A TAX RATE
OF 35 TRANSLATES TO EARNINGS PER SHARE OF 54 CENTS TO 65 CENTS ANALYSTS'
RECENT PERSHARE ESTIMATES AVERAGED 45 CENTS A SHARE USX HAS SAID HOWEVER
THAT ITEMS OTHER THAN TAXES AND THE LITIGATION CHARGE MIGHT BE INCLUDED IN
THE NETINCOME FIGURE

US STEEL HAS PROFITED FROM A SURGE IN ORDERS FOR HIGHPRICED AUTOMOTIVE
STEEL DURING THE QUARTER

INDUSTRY SHIPMENTS FOR THE QUARTER WERE UP NEARLY 8 FROM THE YEAREARLIER
PERIOD WHILE SPOTMARKET PRICES WERE UP 9 THE IMPROVEMENT IS THE RESULT
OF BOTH HIGHER DEMAND AND A REDUCTION IN STEEL IMPORTS ATTRIBUTED TO US
TARIFFS

IN THE YEAREARLIER PERIOD US STEEL REPORTED NET INCOME OF 2 MILLION OR
THREE CENTS A SHARE RESTATED TO REFLECT ACCOUNTING CHANGES

USX IS EXPECTED TO REPORT RESULTS FOR US STEEL AND THE MARATHON GROUP ON
JULY 26 OR JULY 27 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY
US STEEL STOCK ROSE 25 CENTS TO 39625 9307120081 930712
EXTENDOMATICS' KEEP WALL STREET AHEAD OF REGULATORS  BY LAURA
JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL

WALL STREET 1 BANKING REGULATORS 0

THAT'S THE SCORE 17 MONTHS AFTER FEDERAL BANKING REGULATORS IMPOSED TIGHT
LIMITS ON CERTAIN INVESTMENTS BY BANKS

THE NEW RULES WERE MEANT TO KEEP BANKS FROM OVEREXPOSING THEMSELVES TO A
RISKY TYPE OF MORTGAGEBACKED SECURITIES KNOWN AS COLLATERALIZED MORTGAGE
OBLIGATIONS OR CMOS BUT IT DIDN'T TAKE LONG FOR WALL STREET TO FIGURE OUT
HOW TO SELL CERTAIN TYPES OF CMOS THAT NORMALLY WOULD HAVE FLUNKED THE
REGULATORS' TESTS HOW BY CREATING A PRETTIER PACKAGE FOR THE AFFECTED CMOS
SO THAT THEY WOULD PASS MUSTER UNDER THE NEW REGULATIONS

IT'S ACTUALLY A GOOD DAY WHEN WE ARE ONLY ONE DAY BEHIND WALL STREET
CONCEDES ONE RUEFUL SENIOR REGULATOR FROM THE OFFICE OF THE COMPTROLLER OF
THE CURRENCY AMONG THE DRAFTERS OF THE NEW RULES

NOW REGULATORS FEAR THAT THESE NEW MORTGAGEBACKED BONDS DUBBED
EXTENDOMATICS WILL EXPOSE BANKS TO UNDUE RISKS THAT IS BECAUSE THESE
BONDS WON'T FIT REGULATORS' STRICT CRITERIA AFTER THE FIRST YEAR SO BANKS
THAT HOLD EXTENDOMATICS WILL BE AT THE MERCY OF AN EXAMINER WHO CAN FORCE
THEM TO SELL THE BONDS IMMEDIATELY PERHAPS AT A LOSS OR MARK THEM TO
MARKET WHICH MEANS THE DAILY PRICE CHANGES WILL JOSTLE THE BANK'S BALANCE
SHEET

BANKS LOVE CMOS WHICH ARE CREATED BY CARVING UP THE CASH FLOWS FROM
GARDENVARIETY MORTGAGEBACKED SECURITIES INTO INDIVIDUAL BONDS KNOWN AS
TRANCHES EACH WITH ITS OWN INTEREST RATE AND MATURITY

ONE REASON EARNINGS FROM INVESTMENT MANAGEMENT ARE AN INCREASINGLY
IMPORTANT SOURCE OF BANK INCOME AS LONG AS BANKS CONTINUE TO SHY AWAY FROM
LENDING

MOREOVER SOMEONE HAD TO PICK UP THE ROLE OF HOME OWNERSHIP AFTER THE
DISAPPEARANCE OF THE THRIFT INDUSTRY SAYS WILLIAM A STARK ASSISTANT
DIRECTOR OF THE DIVISION OF SUPERVISION OF THE FEDERAL DEPOSIT INSURANCE
CORP WHICH INSURES BANK DEPOSITS

IT'S A ROLE THE BANKS HAVE RUSHED TO FILL IN THE FIRST QUARTER OF 1993
BANKS BOOSTED THEIR HOLDINGS OF MORTGAGE SECURITIES INCLUDING CMOS BY
167 BILLION TO 3236 BILLION ACCORDING TO INSIDE MORTGAGE SECURITIES A
NEWSLETTER BUT HOLDINGS OF CMOS WHICH ACCOUNT FOR HALF OF BANKS' MORTGAGE
SECURITIES ARE GROWING EVEN MORE SHARPLY CMO HOLDINGS ARE UP 33 IN THE
PAST YEAR AND HAVE MORE THAN DOUBLED SINCE 1991

WHAT BANKS LIKE ABOUT CMOS IS THAT THEY CAN FIND BONDS THAT MATCH THE CASH
FLOW AND INTERESTRATESENSITIVITY OF THEIR DEPOSITS AND OTHER LIABILITIES
NO ONE KNOWS EXACTLY HOW MANY OF THESE BONDS WERE DESIGNED TO PASS THE
REGULATORS' TESTS INITIALLY BUT POSSIBLY FAIL LATER SOME SAVVY PARTICIPANTS
WAGER THAT THE VOLUME IS GROWING THE BANKS RISK BEING EXPOSED TO A MISMATCH
WITH THEIR LIABILITIES IF THEY DON'T SELL THEIR HOLDINGS OF THESE BONDS
ONCE THEY FAIL

THE TRICKY NEW BONDS ARE THE UNINTENDED CONSEQUENCE OF RULES IMPOSED IN
FEBRUARY 1992 BY THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL A
GROUP OF REGULATORS THAT INCLUDES THE FDIC THE OFFICE OF THE COMPTROLLER OF
THE CURRENCY THE OFFICE OF THRIFT SUPERVISION AND THE FEDERAL RESERVE
BOARD THE GOAL WAS TO CURB BANKS' EXPOSURE TO INTERESTRATE RISK TO AVOID A
REPEAT OF THE BLOODCURDLING LOSSES THE BANKS INCURRED IN THE 1980S AND EARLY
1990S

THE REGULATORS DEVISED A THREEPART TEST TO DETERMINE A CMO'S RISKINESS BY
DESCRIBING HOW MUCH ITS PRICE AND WEIGHTED AVERAGE LIFE A MEASURE OF
INTERESTRATE SENSITIVITY MAY CHANGE WITH MOVEMENTS IN INTEREST RATES
CMOS WHOSE COUPON IS BASED ON A FLOATING INTEREST RATE ARE SUBJECT ONLY TO
THE PRICE TEST

THE RULES REQUIRE THAT INDIVIDUAL CMOS HAVE AVERAGE LIVES OF 10 YEARS AT
MOST AND THAT THE AVERAGE RETURN OF PRINCIPAL NOT STRETCH OUT MORE THAN SIX
YEARS IF INTEREST RATES RISE THREE PERCENTAGE POINTS OR SHORTEN BY MORE THAN
FOUR YEARS IF RATES FALL THREE PERCENTAGE POINTS THE PRICE OF THE BOND MAY
NOT CHANGE MORE THAN 17 IF RATES MOVE UP OR DOWN THREE PERCENTAGE POINTS

BANKERS MUST DEMONSTRATE HOW THEIR CMOS COMPLY WITH THE RULES A REQUIREMENT
MOST OF THEM SATISFY BY SHOWING REGULATORS THE COMPOSITE WALL STREET
ANALYSES CARRIED ON BLOOMBERG FINANCIALDATA MACHINES EXAMINERS IF THEY
WISH CAN FORCE THE INSTANT SALE OF ANY BOND THAT DOESN'T MEASURE UP

THE IMPACT OF THE NEW RULES RIPPLED THROUGH THE MARKET ALMOST OVERNIGHT
TRADERS SAY THE YIELD GAP ON CMOS THAT FELL OUTSIDE THE COUNCIL'S
GUIDELINES WIDENED SHARPLY TO AS MUCH AS 35 PERCENTAGE POINTS ABOVE YIELDS
ON TREASURY BONDS OF SIMILAR MATURITY FROM AS LITTLE AS 06 PERCENTAGE
POINTS

SINCE BANKS HAVE CONSISTENTLY BEEN THE BIGGEST BUYERS OF CMOS UNDERWRITERS
HAVE A STRONG INCENTIVE TO DESIGN THE BONDS WITH THE COUNCIL'S RULES IN
MIND THOSE REGULATIONS CAN BE EASILY GOTTEN AROUND WHEN THE CASH FLOWS
FROM UNDERLYING MORTGAGES ARE CARVED INTO CMOS SAID GEORGE HALL PRESIDENT
OF CLINTON GROUP AN INVESTMENT MANAGER SPECIALIZING IN MORTGAGE BONDS

INDEED IT WASN'T LONG BEFORE WALL STREET FIRMS CAME UP WITH SOCALLED FFIEC
BONDS THESE PAIR CASH FLOWS IN THE DISTANT FUTURE WHICH THE RULES HAVE
MADE HARDER TO SELL WITH CASH FLOWS THAT RETURN PRINCIPAL IMMEDIATELY
FRONTLOADING OF CASH FLOWS HELPS MAKE A BOND PASS THE AVERAGELIFE TEST
THEY'RE CALLED EXTENDOMATICS BECAUSE AFTER THE INITIAL RETURN OF
PRINCIPAL THE BOND'S AVERAGE LIFE STRETCHES OUT AND THE HOLDER MAY NOT SEE
SIGNIFICANT CASH FLOWS FOR YEARS

THAT WIDE WINDOW OF PRINCIPAL REPAYMENT STRETCHING FAR BEYOND THE BOND'S
INITIAL WEIGHTED AVERAGE LIFE IS THE PROBLEM THE PRINCIPALREPAYMENT
WINDOW IS A CRUCIAL YARDSTICK OF RELATIVE VALUE BECAUSE THE WIDER THE
WINDOW THE GREATER THE NUMBER OF CASH FLOWS IN THE BOND THAT ARE EXPOSED TO
FLUCTUATIONS IN PRICE WITH INTERESTRATE SWINGS THE FURTHER AWAY THOSE CASH
FLOWS THE LIKELIER THAT THEY HAVE BEEN MISPRICED SINCE BONDS ARE PRICED
BASED ON ESTIMATES OF WEIGHTED AVERAGE LIFE AND PREPAYMENTS THAT CHANGE OVER
TIME

LOOK WHAT HAPPENS TO FHLMC 1515 A RECENT 300 MILLION CMO DEAL COMPOSED OF
MORTGAGES BEARING CREDIT GUARANTEES FROM THE FEDERAL HOME LOAN MORTGAGE
CORP TRANCHE J A 47 MILLION PIECE WOULD SEEM IDEAL FOR BANKS WITH AN
INITIAL WEIGHTED AVERAGE LIFE OF 34 YEARS

BUT AFTER A YEAR'S WORTH OF HEFTY CASH FLOWS REPAYMENT OF PRINCIPAL
TRICKLES OUT OVER THE NEXT 12 YEARS THE BOND WILL BECOME A HIGHRISK
SECURITY AND FAIL SUBSEQUENT TESTS CAUTIONS THOMAS SY HO FOUNDER OF NEW
YORK ANALYSIS FIRM GAT IN A RECENT COMMENTARY

BANKS DON'T EVEN GET MUCH OF A REWARD FOR THAT EXTRA RISK EXTENDOMATICS
RARELY YIELD MORE THAN 02 PERCENTAGE POINTS MORE THAN BETTER FFIEC BONDS
I DON'T THINK YOU GET COMPENSATED ENOUGH SAID JAY JENNINGS INVESTMENT
PORTFOLIO MANAGER FOR CENTRAL FIDELITY BANK'S 13 BILLION CMO PORTFOLIO
WHICH REPRESENTS 15 OF THE BANK'S ASSETS I'D RATHER ACCEPT LESS YIELD
WITH TIGHTER PRINCIPAL REPAYMENT MANY BANKERS SUSPECT THESE BONDS FIND
THEIR WAY INTO SMALLER COMMUNITY BANKS AND THRIFTS

SO FAR REGULATORS CAN'T PICK OUT THESE BONDS THOUGH THEY'RE ON THE TRAIL
TWO MONTHS AGO AT THE REQUEST OF JAMIE NEWELL SENIOR CAPITAL MARKETS
ADVISER AT THE OFFICE OF THE COMPTROLLER OF THE CURRENCY BLOOMBERG ADAPTED
ITS POPULAR CMO ANALYSES TO FLAG BONDS THAT DECOMPOSE SHOULD INTEREST RATES
STAY STABLE BUT THE SYSTEM CAN'T DESCRIBE HOW THE BOND WILL FARE WITH
VARYING RATES ONCE THE EARLY CASH FLOWS ARE GONE BECAUSE THE ACTUAL
PREPAYMENTS OF THE UNDERLYING MORTGAGES WHICH CANNOT BE PREDICTED CHANGE
THE BOND'S FUTURE CASH FLOWS

AS LONG AS REGULATORS SET UP MECHANICAL TESTS FOR INVESTMENTS PEOPLE WILL
COME UP WITH A WAY AROUND THEM SAYS ONE CMO CREATOR 9307120080 930712
GEC EXPLORES BUYING DEFENSE ELECTRONICS FROM THORN EMI

LONDON THORN EMI PLC AND GENERAL ELECTRIC CO OF BRITAIN ARE EXPLORING
THE SALE OF THORN'S DEFENSE ELECTRONICS BUSINESS TO GEC

A SPOKESMAN FOR THORN SAID THE NEGOTIATIONS WERE EXPECTED TO RESULT IN A
DEAL BUT HE DECLINED TO ESTIMATE ITS VALUE THORN'S DEFENSE BUSINESS WHICH
MAKES AIRCRAFT RADAR AND OTHER ELECTRONIC EQUIPMENT IS THE MAIN PART OF A
UNIT WITH ANNUAL SALES OF 425 MILLION 6356 MILLION SOME OBSERVERS HAVE
ESTIMATED ITS VALUE AT 160 MILLION

A SPOKESMAN FOR GEC WHICH IS UNRELATED TO GENERAL ELECTRIC CO OF THE US
SAID WE DON'T COMMENT ON SPECULATION

THE SALE WOULD ADVANCE THORN'S PROGRAM TO SHED ITS NONCORE BUSINESSES AND
CONCENTRATE ON ITS MUSIC AND ELECTRONICEQUIPMENT RENTAL BUSINESSES WHICH
NOW ACCOUNT FOR 82 OF PROFIT SINCE 1987 THORN HAS UNLOADED ABOUT 60 OF
ITS COMPANIES INCLUDING A LIGHTING DIVISION THAT IT SOLD LAST MONTH FOR 162
MILLION

NEWS OF THE NEGOTIATIONS CAME ONLY DAYS AFTER GEC BROKE OFF TALKS WITH
BRITISH AEROSPACE PLC OVER A POSSIBLE JOINT VENTURE LIKE OTHER DEFENSE
CONTRACTORS STUNG BY US AND EUROPEAN DEFENSEBUDGET CUTS THE COMPANIES
BRITAIN'S TWO LARGEST DEFENSE CONTRACTORS HAVE SOUGHT TO REDUCE COSTS AND
INCREASE COMPETITIVENESS 9307120079 930712 INTERNATIONAL NAFTA
NEGOTIATORS CLEAR A HURDLE ON ENVIRONMENTAL SIDE ACCORD  US
RETREATS FROM PLAN FOR TOUGH SANCTIONS FROM TRILATERAL PANEL  BY
DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL

COCOYOC MEXICO US NEGOTIATORS CRAFTING A SIDE ACCORD ON THE
ENVIRONMENT FOR THE POLITICALLY TROUBLED NORTH AMERICAN FREE TRADE AGREEMENT
APPEAR TO HAVE STRUCK A TRADEOFF HERE THIS WEEKEND

ACCEDING TO MEXICAN AND CANADIAN OPPOSITION THE US HAS BACKED DOWN FROM
AN EARLIER PROPOSAL FOR TOUGH COMMERCIAL SANCTIONS ENFORCED BY A TRILATERAL
COMMISSION ON THE ENVIRONMENT

WE DON'T EXPECT THE SECRETARIAT OR THE TRILATERAL COMMISSION TO BE IMPOSING
FINES SANCTIONS OR PENALTIES SAID A US NEGOTIATOR ENFORCEMENT WILL BE
THROUGH NATIONAL ENTITIES

ENFORCEMENT MEASURES HAD DEADLOCKED US MEXICAN AND CANADIAN NEGOTIATORS
IN PAST MEETINGS ON NAFTA SIDE PACTS WHICH AIM TO DEAL WITH LABOR AND
ENVIRONMENTAL ISSUES MEXICO AND CANADA HAVE ARGUED THAT COMMERCIAL
SANCTIONS AGAINST POLLUTERS ENFORCED BY A SUPRANATIONAL POLICING COMMISSION
VIOLATED THEIR SOVEREIGNTY

NEGOTIATORS GAVE FEW DETAILS OF HOW ENVIRONMENTAL LAWS WOULD BE ENFORCED IF
THE TRILATERAL COMMISSION RELIED PRIMARILY ON INDIVIDUAL NATIONS BUT ONE
US NEGOTIATOR SUGGESTED THAT PERSISTENT VIOLATIONS COULD RESULT IN A
COMMISSION RECOMMENDATION THAT THE PROBLEM BE REFERRED TO A
DISPUTERESOLUTION PANEL ESTABLISHED UNDER THE BROADER TRADEPACT

ON THE SEPARATE BUT RELATED ISSUE OF THE RAPID INDUSTRIALIZATION AT THE
USMEXICAN BORDER NEGOTIATORS ARE CONSIDERING AN ASSISTANCE FUND THAT
WOULD REPAIR THE INFRASTRUCTURE OF THE RAVAGED MANUFACTURING CORRIDOR THE
US NEGOTIATOR SAID THE FUND COULD ALSO BE USED FOR ECONOMIC DEVELOPMENT
PROJECTS IN AREAS HIT BY JOB LOSSES CAUSED BY NAFTA A PACT THAT AIMS TO
CREATE THE WORLD'S LARGEST TRADING BLOC

ANTINAFTA OPPOSITION IN THE US CONGRESS IS STRONG FOR FEAR OF JOB LOSSES
TO A COUNTRY WHERE LABOR IS CHEAP AND ENVIRONMENTAL ENFORCEMENT IS LAX AND
PRESIDENT CLINTON HAS SAID HE WON'T SUBMIT NAFTA TO CONGRESS WITHOUT
EFFECTIVE SUPPLEMENTAL AGREEMENTS ON ENVIRONMENT AND LABOR

THUS WITHOUT A SUPRANATIONAL POLICING COMMISSION THE ASSISTANCE FUND COULD
TAKE ON GREATER PURPOSE AS THE SOLUTION TO ECOLOGICAL AND LABOR CONCERNS

US AND MEXICAN NEGOTIATORS SAID SEVERAL IDEAS WERE BEING CONSIDERED FOR
THE ASSISTANCE FUND BUT FINANCING REMAINS A STUMBLING BLOCK IT IS
ESSENTIAL THAT THERE IS A CLEAR AND SECURE FUNDING MECHANISM SAID A US
NEGOTIATOR ADDING THAT THE US CONGRESS IS UNLIKELY TO ROUTE TAXPAYER
MONEY TO THE ASSISTANCE FUND

AMONG THE FUNDING PROPOSALS BEING CONSIDERED IS A PLAN BY THE
WASHINGTONBASED INTERAMERICAN DEVELOPMENT BANK TO START A 10 BILLION TRUST
FUND WITH ABOUT 250 MILLION IN SEED CAPITAL PAID OVER A FIVEYEAR PERIOD
THE TRUST FUND THEN WOULD HAVE THE ABILITY TO ISSUE BONDS GUARANTEED BY THE
GOVERNMENTS TO CREATE MORE CAPITAL FOR INFRASTRUCTURE NEEDS

SOME ANALYSTS SAY THAT PLAN MAY BE BLENDED WITH ANOTHER PROPOSAL FOR A NORTH
AMERICAN DEVELOPMENT BANK MODELED AFTER THE LONDONBASED EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT SET UP TO ASSIST FORMER EAST BLOC NATIONS
THE BANK PROPOSAL IS BEING PUSHED BY LATINO GROUPS IN THE US WHO LIKE THE
IDEA THAT SUCH A BANK COULD ADDRESS ECONOMIC DEVELOPMENT ISSUES ON BOTH
SIDES OF THE BORDER

THOUGH NEGOTIATORS ALSO WORKED ON A SIDE PACT ON LABOR ENVIRONMENTAL ISSUES
ARE THE MOST CONTENTIOUS SINCE A US DISTRICT JUDGE RULED THAT AN
ENVIRONMENTAL IMPACT STATEMENT MUST BE PREPARED FOR NAFTA THE CLINTON
ADMINISTRATION IS APPEALING THE RULING WHICH DEALT A SERIOUS BLOW TO NAFTA
AND US OFFICIALS NOTED THIS WEEKEND THAT THE FEDERAL JUDGE'S RULING
DOESN'T LEGALLY PRECLUDE THEM FROM SUBMITTING NAFTA TO CONGRESS BEFORE
COMPLETION OF THE ENVIRONMENTAL REPORT THOUGH SUCH SUBMISSION IS LIKELY TO
CAUSE A POLITICAL UPROAR

ALREADY ENVIRONMENTALISTS AND TRADE ACTIVISTS MEETING IN MEXICO CITY THIS
PAST WEEK TO DISCUSS STRATEGY EXPRESSED CONFLICTING OPINIONS ABOUT THE
EMERGING TRADEOFF AND THE STRENGTH OF AN ASSISTANCE FUND ON THE ENVIRONMENT
AND ECONOMIC DEVELOPMENT WE BELIEVE IN SANCTIONING A BUSINESS NOT A
COUNTRY OR AN ARM OF INDUSTRY SAID BERTA LUJAN WHO LEADS THE MEXICAN
ACTION NETWORK ON FREE TRADE ENFORCEMENT OF SUCH FINES SHOULD REST WITH
INDIVIDUAL GOVERNMENTS RATHER THAN AN INTERNATIONAL POLICING COMMISSION SHE
SAID

BUT JIM JONTZ A FORMER US CONGRESSMAN WHO NOW HEADS THE CITIZENS TRADE
CAMPAIGN ADDED IT WILL BE VERY HARD TO SELL CONGRESS A COMMISSION THAT
DOESN'T HAVE ENFORCEMENT RESPONSIBILITIES

CHIEF NEGOTIATORS FOR THE THREE COUNTRIES WILL MEET AGAIN JULY 19 IN OTTAWA
NEGOTIATORS SAID THEY HOPE TO EMERGE FROM THE CANADIAN MEETINGS WITH A
COMMUNAL TEXT ON THE ENVIRONMENT PACT 9307120077 930712 WHO'S NEWS 
SIGNAL APPAREL NAMES MANAGEMENT TEAM FROM GRISANTI GALEF

CHATTANOOGA TENN SIGNAL APPAREL CO GRAPPLING WITH A SERIES OF
QUARTERLY LOSSES AND THE EROSION OF ITS STOCK PRICE NAMED A NEW MANAGEMENT
TEAM

MARVIN A DAVIS WAS SELECTED BY THE BOARD OF DIRECTORS AS CHIEF EXECUTIVE
AND CHAIRMAN OF THE CLOTHING MANUFACTURER LEE N KATZ WAS NAMED PRESIDENT
BOTH MEN ARE ASSOCIATES OF GRISANTI GALEF & GOLDRESS INC BASED IN LOS
ANGELES WHICH SPECIALIZES IN ASSISTING COMPANIES IN DEVELOPING TURNAROUND
STRATEGIES MR DAVIS WILL REMAIN PRESIDENT OF GRISANTI GALEF

ROGER HOLLAND 52 YEARS OLD HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF
SIGNAL AS PART OF THE CHANGE IN MANAGEMENT HE BECOMES VICE CHAIRMAN OF THE
BOARD AND DIRECTOR OF MARKETING AND SALES ROBERT B COLBERT JR 71
RETIRED AS CHAIRMAN OF THE COMPANY IN JUNE

MESSRS DAVIS AND KATZ AS WELL AS MR HOLLAND WERE UNAVAILABLE FOR
COMMENT

IN THE FIRST QUARTER OF THE YEAR SIGNAL REPORTED A LOSS OF 35 MILLION
COMPARED WITH A 32 MILLION LOSS A YEAR EARLIER THAT FOLLOWED LOSSES IN
BOTH THE THIRD QUARTER AND FOURTH QUARTER OF 1992 COMMENTING ON THE MOST
RECENT QUARTERLY RESULTS MR HOLLAND SAID IN APRIL THAT SIGNAL HAD BEEN
HURT BY GROWING PRESSURE ON SELLING PRICES AND GREATERTHANANTICIPATED
SALES DEDUCTIONS RETURNS AND ALLOWANCES

THE COMPANY'S STOCK WHICH TRADED IN THE MID 20S IN EARLY 1992 HAS
STEADILY DECLINED SINCE THEN TRADING AT ABOUT 9 A SHARE FOR MUCH OF THE
PAST THREE MONTHS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK
EXCHANGE SIGNAL CLOSED AT 950 UNCHANGED