FOR THOSE WITH INFLATION ANXIETY THE GOVERNMENT PRICE REPORTS SCHEDULED FOR RELEASE THIS WEEK SHOULD PROVIDE A TRANQUILIZER THE JUNE CONSUMER AND PRODUCER PRICE INDEXES PROBABLY ROSE ONLY SLIGHTLY IF AT ALL ECONOMISTS SAY FAVORABLE JUNE INDEXES ON THE HEELS OF POSITIVE MAY PRICE REPORTS SHOULD STIFLE ANY TALK OF RENEWED INFLATION THAT SURFACED FOLLOWING UPWARD SPIKES IN EARLIER MONTHS THE JUNE PRICE INDEXES SHOULD DASH ANY LINGERING FEARS OF MAJOR CYCLICAL INFLATION ACCELERATION SAID DONALD MAUDE CHIEF FIXEDINCOME STRATEGIST FOR SCOTIAMCLEOD INC MR MAUDE ESTIMATES THE JUNE CONSUMER PRICE INDEX ROSE A SCANT 01 HELPED BY A MODERATION IN MEDICAL COSTS FAVORABLE JUNE PRICE REPORTS ALSO SHOULD RESTRAIN THE FEDERAL RESERVE FROM RAISING INTEREST RATES ANY TIME SOON MR MAUDE SAID THIS WILL CERTAINLY PLACE ANY FED MONETARY POLICY ON HOLD FOR THE TIME BEING HE SAID THE RISE IN THE CONSUMER AND PRODUCER PRICES EARLIER IN THE YEAR PROMPTED THE FED TO CONSIDER TIGHTENING MONETARY POLICY THERE IS A CHANCE THAT CONSUMER PRICES COULD EDGE BACK UP IN JULY WITH THE INTRODUCTION OF FALL CLOTHING LINES HE SAID BUT THAT ALONE WOULDN'T BE ENOUGH TO PROMPT THE FED TO ACT HE SAID 9307120075 930712 BUSINESS BRIEF INVESTOR AB GOLDMAN SACHS BUYS STAKE IN CHRISTIE'S FROM SUBSIDIARY SWEDEN'S INVESTOR AB SAID A SUBSIDIARY SOLD 11896000 SHARES IN CHRISTIE'S INTERNATIONAL PLC TO GOLDMAN SACHS & CO INVESTOR DECLINED TO COMMENT ON THE PRICE OR ANY OTHER DETAILS OF THE TRANSACTION WHICH REPRESENTS A 75 STAKE IN THE UNITED KINGDOM AUCTION HOUSE IT SAID GOLDMAN SACHS AN INVESTMENTBANKING FIRM EXPECTS TO SELL THE SHARES TO INSTITUTIONAL INVESTORS IN THE ORDINARY COURSE OF BUSINESS THE SHARES WERE SOLD BY AB DUBA A WHOLLY OWNED SUBSIDIARY OF INVESTOR THE MAIN HOLDING COMPANY OF SWEDEN'S POWERFUL WALLENBERG FAMILY 9307120074 930712 BANKS TO RECEIVE US GUIDELINES ON FUND SELLING COMPTROLLER SAYS CONSUMER SHOULD BE TOLD RISKS OF FLUCTUATING MARKET BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMPTROLLER OF THE CURRENCY IS ABOUT TO ISSUE GUIDELINES GOVERNING THE SALE OF UNINSURED MUTUAL FUNDS ANNUITIES AND OTHER INVESTMENT PRODUCTS BY FEDERALLY CHARTERED BANKS IN A SPEECH TO A MEETING OF THE AMERICAN BANKERS ASSOCIATION YESTERDAY COMPTROLLER EUGENE LUDWIG SAID THE NEW POLICY STATEMENT WILL LEAVE NO DOUBT THAT ALL BANKS SHOULD MAKE PROTECTING THE INTERESTS OF CUSTOMERS A CRITICAL PART OF THEIR SALES PROGRAMS BANKS THAT DO NOT ACT RESPONSIBLY WILL RISK ENFORCEMENT ACTIONS FROM THEIR REGULATORS THE GUIDELINES CURRENTLY ABOUT SIX PAGES IN DRAFT FORM WILL STRESS THAT BANKS MUST HIGHLIGHT THAT MUTUAL FUNDS AND INVESTMENT PRODUCTS THAT BANKS SELL AREN'T COVERED BY FEDERAL DEPOSIT INSURANCE AND ARE SUBJECT TO MARKET FLUCTUATIONS IN VALUE THE POLICY STATEMENT ALSO WILL STRESS THE NEED FOR SPECIAL TRAINING OF EMPLOYEES WHO SELL INVESTMENT PRODUCTS IN BANK LOBBIES THE SALE OF UNINSURED INVESTMENT PRODUCTS IN BANK LOBBIES IS A SWEEPING AND SIGNIFICANT TREND WITH INTEREST RATES THEIR LOWEST IN DECADES SAVERS ARE TAKING MONEY OUT OF INSURED DEPOSITS AND MOVING IT INTO HIGHERYIELDING MUTUAL FUNDS BANKS CURRENTLY SELL SHARES IN MORE THAN 1000 MUTUAL FUNDS OFTEN IN THE SAME LOBBIES WHERE THEY ACCEPT FEDERALLY INSURED DEPOSITS TO KEEP THEIR CUSTOMERS AND TO CAPTURE THE FEE INCOME GENERATED BY MUTUAL FUND SALES REGULATORS AND MEMBERS OF CONGRESS ARE CONCERNED THAT SOME SAVERS DON'T UNDERSTAND THE RISK OF MOVING MONEY FROM INSURED DEPOSITS TO MUTUAL FUNDS THAT RISE AND FALL WITH MARKET PRICES THE GUIDANCE WHICH THE COMPTROLLER'S OFFICE HOPES TO ISSUE NEXT WEEK WILL STRESS THAT BANK EMPLOYEES MUST TAKE STEPS TO LEARN ENOUGH ABOUT THEIR CUSTOMERS TO DETERMINE IF MUTUAL FUND INVESTMENTS ARE SUITABLE THE POLICY ALSO WILL MAKE IT CLEAR THAT A BANK'S TOP MANAGEMENT INCLUDING ITS DIRECTORS MUST BE INVOLVED IN SETTING POLICIES FOR MUTUAL FUND SALES FOR MANY BANK CUSTOMERS TRANSFERRING MONEY FROM AN INSURED DEPOSIT TO A MUTUAL FUND IS AS EASY AS WALKING ACROSS A BANK LOBBY BUT REGULATORY ISSUES PRESENTED BY SUCH A CHANGE COULD BE COMPLEX WE'RE TRYING TO BRING TOGETHER TWO PRODUCTS THAT HAVE PREVIOUSLY BEEN REGULATED IN FUNDAMENTALLY DIFFERENT WAYS SAID SUSAN KRAUSE SENIOR DEPUTY COMPTROLLER FOR BANK SUPERVISION POLICY OFFICIALS FROM THE COMPTROLLER'S OFFICE WILL MEET TODAY WITH REPRESENTATIVES OF THE FEDERAL DEPOSIT INSURANCE CORP THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION TO REVIEW THE GUIDANCE REGULATORS HOPE TO ISSUE A UNIFORM POLICY STATEMENT EVENTUALLY 9307120073 930712 INTERNATIONAL WASHINGTON INSIGHT ALLIANCE BETWEEN CROATIA AND SERBIA MAY BE TENUOUS US OFFICIALS FEAR BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE UNHOLY ALLIANCE BETWEEN CROATIA AND SERBIA MAY LAST ONLY AS LONG AS IT TAKES TO CARVE UP BOSNIA US OFFICIALS ARE WORRIED THAT AS EARLY AS THIS FALL CROATIA WILL TRY TO SEIZE BACK THE ONETHIRD OF ITS TERRITORY OCCUPIED BY THE SERBS IN 1991 IN THE FIRST ROUND OF THE BATTLE FOR WHAT IS LEFT OF YUGOSLAVIA BUT THIS TIME THE PROBLEM WON'T BE SOLELY EUROPE'S US FORCES COULD ALSO BE TRAPPED IN THE MIDDLE WASHINGTON IS STILL EXPECTED TO PROVIDE ABOUT HALF OF THE PEACEKEEPING FORCE THAT WILL ENFORCE BOSNIA'S PARTITIONING CROATIA AND SERBIA BY JOINING IN ATTACKING BOSNIA'S MUSLIMS MANAGED TWO DUBIOUS ACCOMPLISHMENTS THEY SPEEDED UP THE DISMEMBERING OF BOSNIA AND THEY GAVE THE WEST ONE MORE AND PERHAPS ITS MOST PERSUASIVE REASON TO STAY OUT OF THE FIGHT ADDING ANOTHER BAD GUY TO THE MIX HELPED CONVINCE EVEN SYMPATHETIC ONLOOKERS THAT THE BALKANS ARE TOO COMPLICATED TO CHANCE GETTING INVOLVED ADDING TO THE DIFFICULTIES OF REACHING A SETTLEMENT WAS YESTERDAY'S DECISION BY MEMBERS OF BOSNIA'S COLLECTIVE PRESIDENCY WHO EFFECTIVELY REJECTED THE SERBCROAT PLAN FOR PARTITIONING BOSNIA ALONG ETHNIC LINES FRUSTRATED BY THE LACK OF PROGRESS IN RESOLVING THE CRISIS IN BOSNIA INTERNATIONAL MEDIATORS ARE VOICING THREATS THAT THEY MAY RECOMMEND THAT THE UNITED NATIONS WITHDRAW FROM THERE UNLESS THE BOSNIAN MUSLIMS AGREE TO NEGOTIATIONS OVER A PARTITION PLAN US OFFICIALS INSIST THAT THE UN SECURITY COUNCIL WOULDN'T IMPLEMENT SUCH A RECOMMENDATION AT LEAST NOT AT THIS TIME BUT THE THREATS ARE SYMPTOMATIC OF THE GROWING WARINESS OF BECOMING MORE DEEPLY INVOLVED IN THE BALKANS BUT THE WEST'S FAILURE MAY HAVE ALSO INCREASED THE LIKELIHOOD OF A NEW WAR BETWEEN SERBIA AND CROATIA IT HAS CERTAINLY FED SERBIA'S APPETITE BUT IT MAY ALSO HAVE TOLD CROATIAN PRESIDENT FRANJO TUDJMAN THAT FORCE IS THE WAY TO GET WHAT HE WANTSAND THAT THE COST IS MINIMAL A SENIOR ADMINISTRATION OFFICIAL SAYS CROATIA'S DECISION TO JOIN FORCES WITH ITS SERBIAN RIVALS WAS NEITHER SUDDEN NOR SERENDIPITOUS THE TWO COUNTRIES BEGAN DRAWING UP MAPS FOR PARTITIONING BOSNIA LONG BEFORE THE WAR BEGAN SAYS PATRICK GLYNN A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE MR TUDJMAN SAYS MR GLYNN NEVER HAD SERIOUS TERRITORIAL AMBITIONS IN BOSNIA FROM THE OUTSET HE SAW BOSNIA AS A BARGAINING CHIP IF HE GAVE THE SERBS A BIG CHUNK OF BOSNIA THEN MAYBE THEY WOULD LEAVE HIM ALONE AND STAY OUT OF CROATIA THE STRATEGY DIDN'T WORK IN A BLOODY HALFYEAR WAR ETHNIC SERBS BACKED BY THE SERBIAN ARMY SEIZED CONTROL OF KRAJINA A MAJORITY SERB REGION AT THE VERY HEART OF CROATIA AND OF THE SERBMINORITY REGION OF SLAVONIA ON SERBIA'S WESTERN BORDER NOW MR TUDJMAN APPARENTLY HOPES THE SAME STRATEGY WILL HELP HIM GET THAT TERRITORY BACK SWAPPING CROATIANHELD LAND IN BOSNIA FOR KRAJINA AND SLAVONIA BUT US OFFICIALS DOUBT THE SERBS WILL GO ALONG WITH THE DEAL DESPITE HIS IMPENDING VICTORY IN BOSNIA SERBIA'S HARDLINE NATIONALIST PRESIDENT SLOBODAN MILOSEVIC IS UNDER SIEGE FROM EVEN MORE FANATICAL NATIONALISTS IN BELGRADE WHO WILL MAKE KRAJINA AND SLAVONIA A CAUSE CELEBRE FOR REASONS OF HARD ECONOMICS AS WELL AS NATIONALISM MR TUDJMAN WILL FIND IT EVEN MORE DIFFICULT TO BACK DOWN KRAJINA LIES DIRECTLY BETWEEN THE CROATIAN CAPITAL OF ZAGREB AND THE DALMATIAN COAST THE CENTER OF CROATIA'S ONCE LUCRATIVE TOURIST INDUSTRY THE RAIL LINK GOES DIRECTLY THROUGH KNIN THE CAPITAL OF KRAJINA TOURISM IS THE KEY TO CROATIA'S ECONOMIC RECOVERY SAYS MR GLYNN AND KRAJINA HE SAYS IS THE KEY TO TOURISM US OFFICIALS HAD FEARED THAT THE CRISIS COULD EXPLODE AS EARLY AS THIS SUMMER WHEN THE MANDATE FOR THE UN PEACEKEEPERS IN CROATIA WAS SCHEDULED TO EXPIRE AT THE LAST MINUTE MR TUDJMAN AGREED TO KEEP THE UN ON BUT ONLY PROVISIONALLY AND ONLY IF THE UN MOVED QUICKLY TO DISARM SERBIAN MILITIAS AS AGREED IN A LONGMORIBUND PEACE PLAN US OFFICIALS NOW BELIEVE THEY HAVE SOME BREATHING SPACE AT LEAST UNTIL SOME RESOLUTION IS FOUND IN BOSNIA OR THE MUSLIMS ARE DEFEATED U S OFFICIALS ALSO BELIEVE THEY MAY STILL HAVE SOME LEVERAGE ON THE WESTERNORIENTED MR TUDJMAN WHO CLEARLY IS COUNTING ON WESTERN AID AND TOURISM TO HELP REVIVE CROATIA'S SHATTERED ECONOMY ONCE THE WAR ENDS IN THE POLITICAL COMMUNIQUE ISSUED AT LAST WEEK'S TOKYO SUMMIT OF INDUSTRIALIZED NATIONS CROATIA WAS WARNED THAT IT WOULD BE SUBJECT TO ECONOMIC SANCTIONS JUST AS SERBIA IS IF THE KILLING ISN'T HALTED IN BOSNIA WHEN CHALLENGED BY REPORTERS TO EXPLAIN WHAT WAS NEW ABOUT THE COMMUNIQUE PRESIDENT CLINTON SINGLED OUT THE THREAT AGAINST CROATIA IT HAS NEVER BEEN SAID EXACTLY LIKE THAT BEFORE PARTICULARLY AS IT RELATES TO CROATIA HE SAID BUT GIVEN THE HISTORY OF THE WEST'S INACTION IN BOSNIA IT'S UNLIKELY THAT SUCH A THREAT WILL BE ENOUGH 9307120071 930712 CREDIT MARKETS FOREIGNERS ARE HEAVY BUYERS OF US TREASURYS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ONE REASON US INTEREST RATES ARE SO LOW NOW IS A SURGE OF FOREIGN BUYING OF US TREASURYS DURING THE FOURTH QUARTER OF LAST YEAR AND THE FIRST QUARTER OF THIS YEAR HELPED BY THE FOREIGN BUYING MANY ECONOMISTS SAY LONGTERM TREASURY BOND YIELDS COULD DROP EVEN FURTHER FROM THE CURRENT 664 THEY POINT TO THE SLUGGISH US ECONOMY WANING INFLATION FEARS AND A BELIEF THAT THE DOLLAR WILL STRENGTHEN BOOSTING THE VALUE OF FOREIGN INVESTORS' BONDHOLDINGS IN THE US OVERSEAS INVESTORS HAVE BEEN RIDING THE BOND MARKET RALLY SAYS LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES WHICH ANALYZES TREASURY DATA THERE IS STILL A PERCEPTION THAT THE US BOND MARKET HAS ROOM FOR IMPROVEMENT ACCORDING TO THE US TREASURY FOREIGN INVESTORS' NET PURCHASES OF US DEBT MORE THAN DOUBLED TO 326 BILLION IN THE SIX MONTHS THROUGH MARCH UP FROM 144 BILLION IN THE YEAREARLIER PERIOD THE TOTAL EXCLUDES TRANSACTIONS BY FOREIGN CENTRAL BANKS AND INVESTORS IN BERMUDA AND THE NETHERLANDS ANTILLES POPULAR TAX HAVENS THIS BUYING WAVE BEGAN LAST NOVEMBER AS BILL CLINTON WAS ELECTED PRESIDENT AND 30YEAR TREASURY BONDS WERE YIELDING ABOUT 775 ACCORDING TO MR CRANDALL OF RH WRIGHTSON NET PURCHASES BY FOREIGN INVESTORS REACHED A RECORD 198 BILLION IN THE FOURTH QUARTER OF LAST YEAR MORE THAN IN ALL THREE PREVIOUS QUARTERS COMBINED THIS YEAR'S FIRSTQUARTER TOTAL WAS 128 BILLION UP FROM THE YEAREARLIER 79 BILLION AND HIGHER THAN IN MOST QUARTERS OF THE PAST FEW YEARS EVEN THOUGH US INTEREST RATES ARE AT THEIR LOWEST LEVELS IN 16 YEARS THEY ARE APPEALING TO MANY FOREIGN INVESTORS WHO BELIEVE THAT THE DOLLAR WILL BE GAINING STRENGTH AGAINST OTHER MAJOR CURRENCIES SUCH AS THE JAPANESE YEN MUCH OF AN INTERNATIONAL INVESTOR'S RETURN FROM INVESTING IN ANOTHER NATION'S BONDS COMES FROM CURRENCY SHIFTS RATHER THAN RISING PRICES BUT PLUNGING INTEREST RATES WITH SIMULTANEOUS RISING PRICES IN THE US SINCE LAST NOVEMBER HAVE ALSO ATTRACTED FOREIGN BUYERS THE YIELD ON THE 30YEAR TREASURY BOND HAS DROPPED MORE THAN A FULL PERCENTAGE POINT SINCE LAST NOVEMBER THE CONTINUING SOFTNESS IN THE ECONOMY HAS UNDERSCORED WHAT IS A CONSTRUCTIVE BACKDROP FOR INTEREST RATES SAYS ALLEN SINAI CHIEF ECONOMIST OF ECONOMIC ADVISORS INC AN AFFILIATE OF LEHMAN BROTHERS THE UNDERLYING FACTORS THAT AFFECT INFLATION WILL STAY SUBDUED HE ADDS THE ONLY CLOUD IS IN THE MIDWEST HE SAYS WHERE RECENT FLOODS ARE CREATING A CROP DISASTER THAT COULD CAUSE A BLIP IN FOOD PRICES OVER THE NEXT TWO MONTHS AS CORN AND SOYBEAN PRICES RISE BUT THESE ARE SPECIAL FACTORS HE SAYS THE BOND MARKET WILL MAKE A DISTINCTION BETWEEN THE SPECIALFACTOR INFLATION AND THE GENERAL INFLATION OUTLOOK AND TAKE THE 30YEAR TREASURY BOND TO 65 BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS INC POINTS TO DECLINING OIL PRICES LAST WEEK AS A SIGN THAT INFLATIONARY PRESSURES ARE WANING MOST BOND INVESTORS REALIZE THAT IN THE GREATER SCHEME OF THINGS LOWER OIL PRICES ARE SOMEWHAT MORE IMPORTANT THAN HIGHER SOYBEAN PRICES HE SAYS AS SOON AS US INVESTORS REALIZE THAT WE CAN SUSTAIN INFLATION RATES AROUND 3 FOR AN EXTENDED PERIOD OF TIME HE PREDICTS THE 30YEAR BOND YIELD IS GOING TO BREAK 650 AND HEAD LOWER THE WORRIES FROM THE EARLY PART OF THIS YEAR WITH INFLATION HAVING BLIPPED UPWARD DESPITE LACKLUSTER ECONOMIC GROWTH HAVE PROVEN TO BE A MIRAGE MR LIPSKY SAYS IT'S NO SURPRISE THAT FOREIGNERS FOUND INVESTMENT IN THE US BOND MARKET TO BE AN ATTRACTIVE PROPOSITION BUT SOME ECONOMISTS BELIEVE THAT THE TRIP TO LOWER YIELDS MIGHT NOT BE A SMOOTH ONE AS INVESTORS GRAPPLE WITH THEIR FEARS OF INFLATION AS LONG AS INFLATION DOESN'T GET OUT OF HAND SAYS DONALD FINE MARKET ANALYST AT CHASE SECURITIES INC I CAN'T SEE WHY THE BOND CAN'T GO TO 65 BUT ECONOMIC GROWTH IN THE SECOND HALF OF THE YEAR IS GOING TO BE GREATER THAN IN THE FIRST HALF HE SAYS AND JUST AS THE FIRST FOUR MONTHS OF INFLATION DATA WERE AN OVERSTATEMENT OF THE INFLATION TREND MAY AND JUNE DATA MAY BE AN UNDERSTATEMENT THE GOVERNMENT IS SLATED TO RELEASE THE JUNE INFLATION DATA TOMORROW AND WEDNESDAY AND FOREIGN DEMAND FOR US SECURITIES MAY WANE IF EUROPEAN INTEREST RATES BEGIN TO DROP SHARPLY WHICH MANY MONEY MANAGERS EXPECT WILL HAPPEN IN THE NEXT YEAR OR SO THE BIGGEST INTERESTRATE PLAY DOES APPEAR TO BE IN EUROPE SAYS MR CRANDALL OF RH WRIGHTSON WHERE INTEREST RATES ARE GOING TO HAVE TO COME DOWN IN A BIG WAY ACCORDING TO MR CRANDALL IN TERMS OF THE IMPACT ON THE US BOND MARKET THE BIGGEST CONTRIBUTIONS FROM OVERSEAS ARE PROBABLY BEHIND US OR WILL BE BEHIND US VERY SOON A MIX OF HIGHGRADE CORPORATE BORROWERS TAPPED THE DEBT MARKET FOR ABOUT 15 BILLION FRIDAY ONE OF THE DAY'S MOST INTERESTING DEALS WAS AN OFFERING OF 50YEAR BONDS BY TELECOMMUNICATIONS CONCERN PACIFIC BELL A UNIT OF PACIFIC TELESIS GROUP THESE RARE LONGDATED SECURITIES HAVE BECOME INCREASINGLY POPULAR IN RECENT MONTHS AS A HANDFUL OF COMPANIES HAVE USED THEM TO LOCK IN ATTRACTIVELY LOW LONGTERM INTEREST RATES INVESTORS GREETED THE 300 MILLION OFFERING WITH STRONG DEMAND ONE SIGN OF THE STRONG DEMAND WAS THE DECISION OF THE COMPANY TO INCREASE THE OFFERING FROM A PLANNED SIZE OF 250 MILLION RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE BABY BELL BOND WAS PRICED AT 99373 TO YIELD 7423 ABOUT 080 PERCENTAGE POINT ABOVE THE TREASURY'S 30YEAR BOND THE ISSUE IS NONCALLABLE FOR 20 YEARS MEANWHILE THE FEDERAL OPEN MARKET COMMITTEE THE POLICYMAKING ARM OF THE FEDERAL RESERVE RELEASED MINUTES OF ITS MAY 18 MEETING WHICH REVEALED THAT THE COMMITTEE HAD VOTED 102 FOR A STEADY MONETARY POLICY BUT WITH A BIAS TOWARD RAISING SHORTTERM INTEREST RATES THE NEWS SURPRISED FEW ON WALL STREET BECAUSE IT HAD BEEN WIDELY BELIEVED THAT THE FOMC HAD TAKEN A HARDER STANCE AGAINST INFLATION IN THE MONTHS PRECEDING THE MEETING A NUMBER OF GOVERNMENT REPORTS HAD INDICATED THAT INFLATIONARY PRESSURES WERE BUILDING THE VOTE FOR A TIGHTER BIAS AT THE MAY 18 MEETING WAS THE FIRST SUCH VOTE SINCE THE FOMC MEETING ON MARCH 28 1989 9307120070 930712 US JURY CONVICTS 4 MASSACHUSETTS MEN IN 34 MILLION FRAUD BOSTON FOUR MASSACHUSETTS MEN INCLUDING A FORMER PRESIDENT OF DIGITAL EQUIPMENT CORP'S CREDIT UNION WERE CONVICTED IN FEDERAL COURT HERE OF A FRAUD CONSPIRACY IN OBTAINING 34 MILLION IN LOANS FROM A NOWDEFUNCT CREDIT UNION PROSECUTORS SAID THE CASE IS THE LARGEST REALESTATE FRAUD AT A FEDERAL CREDIT UNION RICHARD MANGONE NORWELL ROBERT COHEN NEWTON AMBROSE DEVANEY ROCKPORT AND JAMES SMITH BARNSTABLE WERE FOUND GUILTY OF MONEY LAUNDERING BANK FRAUD AND CONSPIRACY CHARGES PROSECUTORS SAID THREE OF THE MEN RECEIVED LOANS FROM BARNSTABLE COMMUNITY FEDERAL CREDIT UNION OF HYANNIS FROM 1985 TO 1991 BUT CONCEALED THE FACT THAT THEY WERE THE BORROWERS BARNSTABLE WAS TAKEN OVER BY FEDERAL REGULATORS AND DISSOLVED IN 1991 MR MANGONE WHO WAS PRESIDENT OF THE DIGITAL CREDIT UNION FROM 1983 TO 1991 AND A COFOUNDER OF BARNSTABLE WAS A CENTRAL FIGURE IN THE CONSPIRACY PROSECUTORS SAID HE FACES A MAXIMUM 16YEAR SENTENCE MR COHEN THE FORMER ATTORNEY FOR BOTH THE BARNSTABLE AND DIGITAL CREDIT UNIONS ALSO FACES A MAXIMUM 16YEARSENTENCE MR SMITH A COFOUNDER AT BARNSTABLE AND MR DEVANEY A REAL ESTATE DEVELOPER FACE SENTENCES OF A MAXIMUM 16 YEARS AND EIGHT YEARS RESPECTIVELY ROBERT KEEFE AN ATTORNEY FOR MR DEVANEY SAID HE MAY APPEAL THE VERDICT ATTORNEYS FOR MESSRS SMITH AND COHEN SAID THEY PLAN TO SEEK A NEW TRIAL ON THE GROUNDS THAT THEIR CLIENTS SHOULD HAVE BEEN TRIED SEPARATELY A SPOKESMAN FOR MR MANGONE COULDN'T BE REACHED PAUL LEVENSON AN ASSISTANT US ATTORNEY SAID THAT UNDER THE SCHEME MESSRS MANGONE DEVANEY AND SMITH WOULD APPLY FOR LOANS FROM BARNSTABLE UNDER THE NAMES OF TRUSTS THEY CONTROLLED MR COHEN WOULD THEN SERVE AS THE CLOSING ATTORNEY ON THE LOANS NEVER REVEALING TO THE CREDIT UNION THAT THE REAL BORROWERS WERE THEIR OWN FOUNDERS SAID MR LEVENSON PROSECUTORS SAID THE DEFENDANTS USED THE LOANS TO BUY ABOUT 25 MILLION IN COMMERCIAL REAL ESTATE WE'RE VERY GRATIFIED THAT THE JURY FOUND THESE GUYS GUILTY OF ABUSING POSITIONS OF TRUST MR LEVENSON SAID 9307120069 930712 LAW LEGAL BEAT BIAS LAWS DON'T PROTECT LAWYERS FROM BEING FIRED COURT RULES BY JONATHAN M MOSES AND MILO GEYELIN STAFF REPORTERS OF THE WALL STREET JOURNAL DO DISCRIMINATION LAWS PROTECT ATTORNEYS FROM BEING DISMISSED BY THEIR CLIENTS NO ACCORDING TO A NEW YORK APPEALS COURT ONE OF THE FIRST COURTS TO CONSIDER THE ISSUE IN A 32 DECISION THE COURT LAST WEEK THREW OUT A CASE BROUGHT BY A LAWYER ALLEGING THAT RAP MUSICIAN LL COOL J WHO IS BLACK FIRED HIM BECAUSE HE IS WHITE THE COURT SAID THE ATTORNEYCLIENT RELATIONSHIP IS A SPECIAL ONE THAT ISN'T SUBJECT TO THE SAME RULES AS THOSE THAT BAR DISCRIMINATION AGAINST EMPLOYEES THE RULING LEFT LL COOL J WHOSE HITS HAVE INCLUDED MAMA SAID KNOCK YOU OUT FREE TO KNOCK OUT HIS FORMER ATTORNEY JOSEPH GIAIMO A NAME PARTNER IN QUEENS NY LAW FIRM GIAIMO & VREEBURG ATTORNEYS SAID THE ISSUE OF CLIENT PREJUDICE HAS RARELY BEEN LITIGATED AND IS ALMOST NEVER ADDRESSED BY BAR ASSOCIATIONS UNLIKE THE QUESTION OF BIAS BY ATTORNEYS WHICH HAS LED SEVERAL STATE BARS TO ADOPT RULES ALLOWING THEM TO DISCIPLINE LAWYERS WHO DISCRIMINATE THE CANONS OF ETHICS ESSENTIALLY GIVE CLIENTS CARTE BLANCHE TO FIRE THEIR LAWYERS SAID DEBRA RASKIN A PARTNER AT NEW YORK LAW FIRM VLADECK WALDMAN ELIA & ENGLEHARD WHICH REPRESENTS PLAINTIFFS IN DISCRIMINATION CASES THE CASE IN NEW YORK AROSE FROM A RELATIONSHIP EARLY IN LL COOL J'S CAREER MR GIAIMO REPRESENTED THE RAP STAR WHO IS ALSO FROM QUEENS AND WHOSE GIVEN NAME IS JAMES TODD SMITH WHEN HE FIRST GOT HIS START IN THE EARLY 1980S BUT AFTER FIVE YEARS MR GIAIMO SAID MR SMITH'S FATHER WHO ALSO IS THE MUSICIAN'S BUSINESS MANAGER FIRED HIM BECAUSE THE FATHER ALLEGEDLY WANTED A BLACK ATTORNEY AS IT IS LL COOL J BRIEFLY RETAINED A BLACK LAWYER BUT HIS LAST TWO ATTORNEYS WERE WHITE WHILE THE FACTS OF THE LL COOL J CASE ARE UNUSUAL THE ISSUE MAY GAIN MORE ATTENTION ESPECIALLY AS PREJUDICE BY CLIENTS IS SEEN AS MAKING IT MORE DIFFICULT FOR BLACK AND WOMEN LAWYERS TO SUCCEED MS RASKIN NOTED THAT MANY BLACK AND WOMEN LAWYERS AT LARGER CORPORATE LAW FIRMS SENSE THAT THEIR CAREERS ARE STUNTED WHEN THEY ARE UNABLE TO DEVELOP RELATIONSHIPS WITH FIRM CLIENTS BECAUSE OF BIASES AN EMPLOYER LAW FIRM CAN'T TAILOR ITS EMPLOYMENT PRACTICES TO SATISFY A CLIENT SAID MS RASKIN WHO ISN'T INVOLVED IN THE LL COOL J CASE ON THE OTHER HAND MS RASKIN SAID IN SOME CASES THERE MAY BE APPROPRIATE REASONS FOR A CLIENT TO CHOOSE A LAWYER OF A PARTICULAR RACE OR SEX FOR INSTANCE A WOMAN PURSUING A SEXUALHARASSMENT CLAIM MAY PREFER A FEMALE LAWYER THE ISSUE OF DISCRIMINATION AGAINST LAWYERS HAS COME UP IN DISCRIMINATION LAWSUITS BY INHOUSE COUNSEL AGAINST CORPORATIONS SOME COMPANIES HAVE ARGUED THAT THEY COULDN'T BE SUED FOR DISCRIMINATION FOR FIRING A BLACK OR WOMAN INHOUSE ATTORNEY BECAUSE THE ATTORNEYCLIENT RELATIONSHIP IS UNIQUE BUT COURTS HAVE RULED THAT THE INHOUSE COUNSEL RELATIONSHIP IS ONE OF EMPLOYER AND EMPLOYEE RATHER THAN ATTORNEYCLIENT AND DISCRIMINATION LAWS APPLY SOME LAWYERS SAY THE BROAD FEDERAL CIVILRIGHTS LAWS WHICH BAR DISCRIMINATION IN MAKING CONTRACTS MIGHT BE FOUND BY COURTS TO APPLY TO CLIENTLAWYER RELATIONSHIPS INVOLVING RETAINERS WHICH ESSENTIALLY ARE CONTRACTS FOR SERVICE TWO JUDGES ON THE FIVEMEMBER APPEALS PANEL SAID IN A DISSENT THAT THE ATTORNEY HAD A CLAIM UNDER THE FEDERAL CIVILRIGHTS ACT FOR THAT REASON STEPHEN GILLERS A PROFESSOR AT NEW YORK UNIVERSITY LAW SCHOOL WHO SPECIALIZES IN LEGAL ETHICS SAID THAT WHILE THE FEDERAL CIVILRIGHTS LAW IS BROAD IN PROHIBITING DISCRIMINATION IN CONTRACTS THE ATTORNEYCLIENT RELATIONSHIP WOULD TRUMP THAT LAW IN CASES INVOLVING LAWYERS ON RETAINER THE RELATIONSHIP BETWEEN A CLIENT AND HIS LAWYER IS SO PERSONAL AND SO FREE FROM REVIEW HISTORICALLY THAT COURTS ARE NOT GOING TO BE WILLING TO REVIEW IT SAYS MR GILLERS MR GIAIMO AGREED THAT ATTORNEYS DON'T HAVE THE SAME CONTRACTUAL RIGHTS AS OTHER EMPLOYEES BUT HE SAID LL COULD HAVE TERMINATED ME AT ANY TIME BUT NOT FOR THE WRONG REASON MY POSITION IS YOU CANNOT SAY I'M GOING TO ELIMINATE YOU BECAUSE I'M WHITE MR GIAIMO SAID HE PLANS TO APPEAL THE RULING BRIAN KAPLAN AN ATTORNEY AT GOODKIND LABATON RUDOFF & SUCHAROW FOR LL COOL J SAYS MR GIAIMO IS PURSUING THE CLAIM ONLY BECAUSE HE IS BEING SUED TO RETURN LEGAL FEES TO THE RAP STAR LL COOL J MAINTAINS THAT MR GIAIMO OVERBILLED HIM BY 135000 CITIES CAN'T PREVENT APARTMENTBUILDING OWNERS FROM BARRING ACCESS TO CABLETV COMPANIES THAT WANT TO HOOK UP INDIVIDUAL TENANTS THE MICHIGAN SUPREME COURT RULED THE DECISION UPHOLDS AN APPEALS COURT DECISION LAST YEAR INVOLVING EDWARD ROSE REALTY INC THE OWNER OF TWO APARTMENT BUILDINGS IN LANSING THE CASE AROSE OUT OF ROSE'S DECISION TO PROVIDE A SATELLITE SYSTEM THAT TENANTS COULD LINK UP WITH RATHER THAN RENEW AN ACCESS AGREEMENT WITH CONTINENTAL CABLEVISION INC ROSE AND OTHER OWNERS OF APARTMENT AND CONDO DEVELOPMENTS THROUGHOUT THE COUNTRY HAVE BEEN ANGERING CABLE COMPANIES BY SIDESTEPPING THEM TO PROVIDE TV PROGRAMMING VIA SATELLITE AND POCKETING FEES FROM TENANTS THE MICHIGAN DECISION BY FURTHER BOLSTERING THE RIGHTS OF PROPERTY OWNERS IN SUCH CASES FOLLOWS SIMILAR RULINGS BY FEDERAL APPEAL COURTS IN PHILADELPHIA AND ATLANTA YOU DO HAVE A CONSENSUS SHAPING UP THAT LANDLORDS SHOULD HAVE A CHOICE IN DECIDING WHO THEIR CABLE SUPPLIERS OUGHT TO BE SAID DEBORAH COSTLOW A LAWYER IN THE WASHINGTON OFFICE OF LAW FIRM WINSTON & STRAWN WHICH WON THE CASE THE DECISION IS SIGNIFICANT BECAUSE CONTINENTAL WHICH WASN'T A PARTY TO THE SUIT HAD PERSUADED LANSING TO PASS AN ORDINANCE PROHIBITING OWNERS OF MULTIUNIT DWELLINGS FROM INTERFERING WITH THEIR TENANTS' CHOICE OF CABLE SYSTEMS WHEN ROSE STILL BARRED CONTINENTAL FROM ITS BUILDINGS LANSING DECLARED THAT A PUBLIC INTEREST WAS AT STAKE AND BEGAN CONDEMNATION PROCEEDINGS TO ENSURE THE CABLE OPERATOR'S ACCESS TO INDIVIDUAL APARTMENTS FEDERAL LAW AND STATE LAW GENERALLY PROHIBIT ANY TAKING OF PROPERTY BY GOVERNMENT FOR A PRIVATE PURPOSE BUT LANSING CITY OFFICIALS ARGUED THAT THE TAKING UNDER THEIR ORDINANCE WAS PERMISSIBLE AS A PUBLIC BENEFIT AS EVIDENCE THE CITY CITED COMMUNITY ACCESS CHANNELS A LOCAL GOVERNMENT CHANNEL AND ACCESS TO LOCAL COLLEGE COURSES PROVIDED BY CONTINENTAL'S SYSTEM CITY OFFICIALS EMPHASIZED THAT TENANTS IN ROSE PROPERTIES WERE ENTITLED TO A CHOICE BUT THE STATE'S HIGH COURT WHILE CONCEDING SOME PUBLIC POLITICAL AND EDUCATIONAL BENEFITS FROM THE ORDINANCE STRUCK IT DOWN ON THE GROUND THAT CONTINENTAL NOT THE PUBLIC WAS THE PRIMARY BENEFICIARY LANSING VS EDWARD ROSE REALTY MICHIGAN SUPREME COURT NO WHO'S NEWS ROBERT EMMET CURRY JR AND DENNIS N BERMAN JOINED THE NEW YORK OFFICE OF CHICAGO LAW FIRM SONNENSCHEIN NATH & ROSENTHAL AS PARTNERS MR CURRY WAS A PARTNER AT DICKSTEIN SHAPIRO & MORIN MR BERMAN WAS A PARTNER AT MUDGE ROSE GUTHRIE ALEXANDER & FERDON JOSEPH A DARRELL JOINED SHEPPARD MULLIN RICHTER & HAMPTON AS A PARTNER IN THE LOS ANGELES FIRM'S SAN FRANCISCO OFFICE MR DARRELL WAS HEAD OF THE ENVIRONMENTAL GROUP AT SAN FRANCISCO LAW FIRM THELEN MARRIN JOHNSON & BRIDGES SANCTIONS THREE LAWYERS FOR SHAREHOLDERS WILL HAVE TO PAY US HEALTHCARE INC A TOTAL OF 2755350 FOR LEGAL FEES SPENT DEFENDING SHAREHOLDER CLASS ACTIONS A JUDGE RULED LAST WEEK US DISTRICT JUDGE LOUIS C BECHTLE PHILADELPHIA DISMISSED THE LAWSUITS EARLIER THIS YEAR RULING THAT THE LAWYERS VIOLATED THEIR PROFESSIONAL DUTIES BY NOT MAKING PROPER INVESTIGATIONS BEFORE FILING THE SUITS AGAINST THE BLUE BELL PABASED HEALTH MAINTENANCE ORGANIZATION THE LAWYERS ARE JAMES R MALONE JR A PARTNER AT THE DEFUNCT GREENFIELD & CHIMICLES AND NOW A MEMBER OF CHIMICLES BURT JACOBSEN & MCNEW ARNOLD LEVIN OF LEVIN FISHBEIN SEDRAN & BERMAN AND HARRIS J SKLAR A SOLO PRACTITIONER THE LAWYERS ALL BASED IN PHILADELPHIA COULDN'T BE REACHED FOR COMMENT EARLIER THIS YEAR THEY SAID THEY PLANNED TO APPEAL JUDGE BECHTLE'S INITIAL RULING 9307120068 930712 ECONOMY RECORD FLOODING SLOWS SHIPPING ACROSS NATION TRAIN BARGE TRUCK ROUTES DISRUPTED AS WATERS KEEP RISING IN MIDWEST BY SCOTT KILMAN AND DANIEL MACHALABA STAFF REPORTERS OF THE WALL STREET JOURNAL SHIPPING ACROSS THE NATION IS BEING DISRUPTED ON A STAGGERING SCALE BY THE RECORD FLOODING IN THE MIDWEST TRAIN SHIPMENTS OF EVERYTHING FROM MAIL TO NEW CARS AND INDUSTRIAL GOODS ARE SLOWING TO A TRICKLE ACROSS THE MIDWEST BECAUSE SECTIONS OF IMPORTANT TRANSCONTINENTAL RAILROAD LINES ARE SWAMPED CLOSED BRIDGES AND FLOODED ROADS IN SEVERAL STATES ARE FORCING TRUCKS TO DETOUR HUNDREDS OF MILES AND LONG STRETCHES OF THE MISSISSIPPI MISSOURI AND ILLINOIS RIVERS ARE CLOSED TO COMMERCIAL NAVIGATION TRAPPING ABOUT ONE THOUSAND BARGES AND SLOWING THE FLOW OF COMMODITIES SLATED FOR EXPORT FROM MISSISSIPPI RIVER PORTS AROUND NEW ORLEANS AT THE SAME TIME THE RISING WATERS CONTINUE TO SWALLOW FARMLAND FORCING THE EVACUATION OF RIVER TOWNS AND THREATENING FACTORIES ALL ACROSS THE MIDWEST THE DISRUPTION TO TRANSPORTATION RIVALS ANYTHING EVER CAUSED BY LABOR STRIKES OR WEATHER BECAUSE THOUSANDS OF MILES OF STRATEGIC RAILROAD BARGE AND TRUCK ROUTES ARE BEING CRIMPED AT THE SAME TIME WHEN THE 1988 DROUGHT STRANGLED BARGE TRAFFIC ON THE MISSISSIPPI RIVER FOR EXAMPLE CROPS WERE SHIFTED ONTO TRAINS THIS TIME THERE ARE FEWER ALTERNATIVES AS A RESULT SOME GRAIN ELEVATORS IN THE FARM BELT MIGHT BE FORCED TO CLOSE SHORTLY MANY ARE FILLING AS FARMERS SELL CROPS TO TAKE ADVANTAGE OF A WEATHERRELATED RALLY IN COMMODITY PRICES SOME ELEVATORS HAVE NOWHERE TO SEND THE GRAIN AT THIS RATE WE'LL BE FULL IN THREE OR FOUR WEEKS SAID THE GRAIN MERCHANDISER FOR A BARGELOADING TERMINAL ON THE ILLINOIS RIVER AFTER THAT WE'LL BE DOWN AMID THE DISRUPTIONS ELECTRIC UTILITIES CONSTRUCTION COMPANIES FOOD PROCESSORS AND DAIRY FARMERS STRUGGLE TO FIND SUPPLIES RANGING FROM COAL AND CEMENT TO LIVESTOCK RATIONS FREIGHT TRAFFIC WILL BE DISRUPTED FOR WEEKS AND TRANSPORTATION EXECUTIVES SAID IT IS TOO EARLY TO CALCULATE THE COST OF REPAIRS AND DELAYS SANTA FE PACIFIC CORP'S FASTEST RAIL ROUTE BETWEEN CHICAGO AND LOS ANGELES WAS CLOSED SATURDAY IN WESTERN MISSOURI WHEN A TORRENT SWEPT A GRAND RIVER BRIDGE FROM ITS FOUNDATIONS THE EASTWEST LINE OPERATED BY BURLINGTON NORTHERN INC WAS WASHED OUT IN IOWA AND FLOODING IN DES MOINES YESTERDAY KNOCKED OUT SERVICE BY OTHER CARRIERS IT IS A DISASTER OF MAJOR PROPORTIONS FOR THE NATION'S RAIL SYSTEM SAYS ROBERT BANKS PRESIDENT OF RL BANKS & ASSOCIATES INC A TRANSPORTATIONCONSULTING COMPANY IN WASHINGTON THE FLOODING IS HITTING THEM IN THE SOLAR PLEXUS RIGHT IN THE GUT HE SAID WITH THE FLOODWATERS RISING COMPANIES ARE SCRAMBLING TO KEEP FACILITIES OPERATING MONSANTO CO IS TRYING TO PROTECT A ST LOUIS CHEMICAL PLANT WITH SANDBAGS AND WORK CREWS ARE ELEVATING A FLOODED TRAIN TRACK THAT SUPPLIES ITS MUSCATINE IOWA FACILITY A FARMLAND INDUSTRIES INC HOG SLAUGHTER PLANT IN DENISON IOWA WAS FLOODED FRIDAY UNION ELECTRIC CO IS BOATING HUNDREDS OF EMPLOYEES TO A MISSOURI UTILITY PLANT THAT IS SURROUNDED BY WATER COMMONWEALTH EDISON CO TEMPORARILY DELAYED THE ROUTINE STARTUP OF ITS NUCLEARPOWER GENERATING STATION AT CORDOVA ILL BECAUSE FLOODING WOULD HAVE SNARLED THE PLANS IT HAS FOR ANY ACCIDENTRELATED EVACUATION OF RESIDENTS MONSOONLIKE STORMS ARE AGGRAVATING THE FLOODING EIGHT INCHES OF RAIN FELL ON KANSAS CITY MO OVER THE WEEKEND FOR EXAMPLE RECORD RAINFALL ACROSS THE MIDWEST BEGAN TO SHUT DOWN COMMERCIAL NAVIGATION ON THE UPPER MISSISSIPPI RIVER MORE THAN TWO WEEKS AGO SHIPPING INDUSTRY EXECUTIVES ARE WORRIED THE RIVER MIGHT CLOSE AS FAR SOUTH AS ITS JUNCTION WITH THE OHIO RIVER THE FARM BELT'S BUSIEST WATER ARTERY ISN'T EXPECTED TO FLOOD SIGNIFICANTLY SOUTH OF THAT POINT BECAUSE THE COMBINED RIVERS ARE SO BROAD AS A RESULT THE LEVEL OF THE MISSISSIPPI RIVER IN NEW ORLEANS IS CURRENTLY FORECAST TO RISE ONLY ONE TO TWO FEET WHILE THAT WILL SPARE THE DELTA DAMAGE THE EXPORT TERMINALS ALONG THE RIVER MIGHT BE STRANGLED IF NAVIGATION DOESN'T RETURN TO THE UPPER REACHES BY EARLY AUGUST WHICH IS UNLIKELY IF WEATHER DOESN'T CHANGE SOON AND ONCE THE RIVERS DO FALL THE BACKLOG OF BARGES MIGHT TAKE A MONTH TO CROWD THROUGH THE LOCK AND DAM SYSTEM SAID BARGE EXECUTIVES BARGE RATES ALREADY ARE BEGINNING TO CLIMB AND SOME TRUCK RATES ARE EXPECTED TO RISE BUT TRANSPORTATION INDUSTRY ANALYSTS AREN'T SURE WHETHER THE RAILROADS CAN QUICKLY PASS ALONG THEIR HIGHER EXPENSES BECAUSE THEIR CUSTOMERS ARE MORE SENSITIVE TO THE SLUGGISH BUSINESS CLIMATE WITHOUT A VIBRANT ECONOMY IT WILL BE TOUGH FOR RAILROADS IN PARTICULAR TO RECOUP THE HIGHER COSTS THROUGH HIGHER RATES SAID MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP IN NEW YORK WITHIN THE TRANSPORTATION INDUSTRY THE RAILROADS ARE SUFFERING THE MOST PHYSICAL DAMAGE BECAUSE MANY ROUTES WERE LAID A CENTURY AGO TO FOLLOW RIVERS AS FAR AS YOU CAN SEE IT'S WATER AND WE ARE IN THE MIDDLE OF IT SAYS MIKE FRANKE VICE PRESIDENT OF MAINTENANCE OF SANTA FE'S RAILWAY UNIT IT LOOKS LIKE WE ARE RUNNING ON A CAUSEWAY THROUGH THE OCEAN BUT THERE ARE NO WAVES THE SOO LINE RAILROAD'S ROUTE BETWEEN CHICAGO AND KANSAS CITY MO HAS BEEN FLOODED SINCE LATE JUNE AND PROBABLY WON'T REOPEN UNTIL LATER THIS MONTH WE GET HIT WITH SNOWSTORMS SPRING RUNOFF THUNDERSTORMS AND WASHOUTS BUT THIS IS THE WORST DISASTER WE EVER FACED SAID CONRAD WENCKA CHIEF TRANSPORTATION OFFICER OF THE US UNIT OF MONTREALBASED CANADIAN PACIFIC LTD WHICH OWNS THE SOO THE SOO'S TRACK IN DAVENPORT IOWA IS UNDER EIGHT FEET OF WATER THE RAILWAY WILL HAVE TO RESTORE THAT TRACK AND MIGHT SPEND UP TO 10 MILLION TO AMONG OTHER THINGS DUMP 6000 CARLOADS OF LARGE STONE TO RESTORE A 160MILE STRETCH OF RIVER BANK MR WENCKA SAID A SPOKESMAN FOR BURLINGTON NORTHERN WHICH OPERATES THE NATION'S LARGEST RAIL SYSTEM SAID FLOODING CLOSED PARTS OF ITS LINES CONNECTING CHICAGO TO ST LOUIS AND OMAHA AS A RESULT FREIGHT SHIPMENTS HAVE BEEN DELAYED 24 HOURS TO 48 HOURS IN THE MIDWEST A SOUTHERN PACIFIC RAIL CORP SPOKESMAN SAID SOME FREIGHT SHIPMENTS WILL TAKE EXTRA DAYS TO TRAVERSE CIRCUITOUS ROUTES AROUND THE FLOODED AREAS CHICAGO & NORTH WESTERN HOLDINGS CORP SAID ITS BUSY EASTWEST LINE THROUGH IOWA WAS RETURNED TO SERVICE YESTERDAY AFTER IT WAS HAMPERED LATE THURSDAY BY HIGH WATER RAILROADS THAT INITIALLY ESCAPED THE FLOODING ENJOYED A WINDFALL IOWA INTERSTATE RAILROAD LTD A REGIONAL LINE CREATED FROM THE REMAINS OF THE DEFUNCT CHICAGO ROCK ISLAND & PACIFIC RAILROAD WAS DELUGED LAST WEEK WITH REQUESTS FROM MAJOR RAILROADS TO USE ITS TRACKS BY YESTERDAY HOWEVER FLOODING IN DES MOINES SHUT ITS MAIN LINE WE AREN'T ENGINEERED FOR THE NUMBER OF TRAINS THEY WOULD LIKE TO SEND IN OUR DIRECTION SAID ROB FINLEY EXECUTIVE VICE PRESIDENT OF IOWA INTERSTATE WHICH TURNED DOWN SOME REQUESTS THE DISRUPTION OF THE NATION'S RAIL AND BARGE SYSTEMS IS FORCING MANY MANUFACTURERS TO EMPLOY TRUCKING FIRMS BUT THEIR OPERATING EXPENSES ARE BEING INFLATED BY DETOURS THE TRAVEL TIME FROM ILLINOIS TO KANSAS CITY MO AND TULSA OKLA FOR EXAMPLE HAS JUMPED BY FOUR HOURS YOU HAVE EXTRA COSTS FOR FUEL EXTRA COSTS FOR DRIVERS AND ONGOING CUSTOMER COMPLAINTS ABOUT TRANSIT TIMES SAID DON ORR PRESIDENT OF FARMER CITY ILLBASED PFTROBERSON TRUCKING CO HE PEGS THE ADDED COSTS AT UP TO 200000 A WEEK 9307120067 930712 BUSINESS BRIEF KSL ENTERPRISES GROUP LTD COMPANY BUYS 80 STAKE IN OPERATOR OF GOLF FACILITIES KSL ENTERPRISES GROUP LTD AN INVESTMENT COMPANY FORMED WITH BACKING OF BUYOUT FIRM KOHLBERG KRAVIS ROBERTS & CO ACQUIRED A MAJORITY STAKE IN THE US'S FOURTHLARGEST OPERATOR OF GOLF FACILITIES KSL IN VAIL COLO FORMED LAST YEAR TO INVEST IN RECREATION AND LEISURE INDUSTRIES PURCHASED 80 OF THE MANASSAS VABASED FAIRWAYS GROUP THIS WAS THE FIRST VENTURE FOR KSL WHILE TERMS OF THE AGREEMENT WERE NOT REVEALED AN EXECUTIVE CLOSE TO THE NEGOTIATIONS SAID KSL PAID ABOUT 60 MILLION FOR ITS STAKE IN FAIRWAYS FAIRWAYS WHICH OPERATES 11 GOLF COURSES IN MIDATLANTIC STATES AND FLORIDA SAID THE SALE GIVES IT 100 MILLION TO BUY NEW FACILITIES MOSTLY ALONG THE COUNTRY'S SOUTHEAST COAST FAIRWAYS IS LOOKING FOR INVESTMENTS IN EXISTING GOLF COURSES THAT ARE UNDERFINANCED AND UNDERPERFORMING AND PROVIDE CAPITAL IMPROVEMENTS AND A PROFESSIONAL MANAGEMENT TEAM 9307120066 930712 BUSINESS BRIEF OCEVAN DER GRINTEN NV DUTCH COMPANY SAYS PROFIT FELL 47 IN SECOND QUARTER DUTCH COPIER AND OFFICE SYSTEMS GROUP OCEVAN DER GRINTEN NV SAID ITS NET PROFIT PLUNGED 47 IN THE SECOND QUARTER ENDED MAY 31 AND THE COMPANY DOESN'T EXPECT MUCH IMPROVEMENT IN THE SECOND HALF OF THE BOOK YEAR WITH GLOBAL SALES TUMBLING TO 6417 MILLION GUILDERS 335 MILLION FROM 6961 MILLION GUILDERS OCE SAID NET PROFIT PLUNGED TO 159 MILLION GUILDERS FROM 301 MILLION GUILDERS A YEAR EARLIER PERSHARE NET FELL TO ONE GUILDER FROM 189 GUILDERS THE DECLINE IN OPERATING PROFIT WAS LARGELY DUE TO LOWER SALES THE COMPANY SAID ADDING THAT ESPECIALLY IN EUROPE SALES REMAINED UNDER PRESSURE BECAUSE OF THE LOW LEVEL OF ECONOMIC ACTIVITY 9307120065 930712 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE PARTIES PRESIDENT AND TAXPAYERS ARE UNITED BY STAKES THEY HAVE IN DEFICIT BILL FIGHT BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THERE ARE A FEW MOMENTS WHEN ALL THAT MAKES WASHINGTON TICK POLITICS POWER MONEY AND IDEOLOGICAL PASSION COME TOGETHER TO FORM A COMBUSTIBLE MIXTURE THAT WILL BURST OUT AND AFFECT EVERYONE IN AMERICA THIS IS ONE OF THOSE RARE MOMENTS THIS IS THE WEEK WHEN HOUSE AND SENATE NEGOTIATORS WILL SIT DOWN TOGETHER IN A CROWDED CAPITOL CONFERENCE ROOM TO BEGIN DECIDING THE FATE OF BILL CLINTON'S ECONOMIC PROGRAM TECHNICALLY THEY WILL BE WORKING OUT THE DIFFERENCES BETWEEN THE HOUSE AND SENATE VERSIONS OF THE CLINTON PACKAGE OF TAX INCREASES SPENDING CUTS AND INVESTMENT PROGRAMS BUT THE STAKES ARE FAR BIGGER THAN THEY SEEM ON THE SURFACE SIMPLY PUT PRESIDENT CLINTON FACES POLITICAL DISASTER IF HE FAILS TO GET AN ECONOMIC PLAN THROUGH CONGRESS THERE'S A VERY STRONG CONVICTION BY SOME PEOPLE PARTICULARLY BY DEMOCRATS THAT IF THIS FAILS IT'S VERY CLOSE TO BEING A FAILED PRESIDENCY SAYS CHARLS WALKER A FORMER TOP TREASURY OFFICIAL WHO NOW IS ONE OF WASHINGTON'S MOST POWERFUL LOBBYISTS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN THE NEW YORK DEMOCRAT WARNED YESTERDAY ON NBC'S MEET THE PRESS THAT THE CLINTON PRESIDENCY WOULD CLOSE DOWN IF THERE'S NO DEAL MR CLINTON UNDERSTANDS THE RISKS WHICH EXPLAINS WHY HIS AIDES ARE CONSIDERING CALLING THE ENTIRE GROUP OF CONFEREES TO THE WHITE HOUSE FOR A HIGHPROFILE ARMTWISTING SESSION TO KICK OFF THE CONFERENCE WITHOUT A SINGLE REPUBLICAN VOTE TO COUNT ON AND WITH RAZORTHIN MARGINS OF SUPPORT IN HIS OWN PARTY IT ISN'T CERTAIN THAT HE WILL CONVINCE A MAJORITY OF LAWMAKERS TO SIGN ON TO ANY PACKAGE THERE'S A GOOD CHANCE THOUGH THAT ENOUGH DEMOCRATS SO FEAR THE CONSEQUENCES OF FAILURE THAT THEY WILL PASS SOME KIND OF PLAN IF SO THAT PLAN WILL BECOME THE ECONOMIC BLUEPRINT THAT SETS THE TONE FOR THE REST OF THE CLINTON TERM THE PRESIDENT NEEDS A PACKAGE THAT SOMEHOW BOTH CUTS THE DEFICIT AND FORGES A MORE PROGRESSIVE ECONOMIC POLICY HE HAS LAID OUT SOME GENERAL DEMANDS HE WANTS MET ROUGHLY 500 BILLION IN DEFICIT CUTS TAXES THAT FALL HARDEST ON THE RICH SOME KIND OF BROADBASED ENERGY TAX CREATION OF EMPOWERMENT ZONES TO ENCOURAGE INNERCITY INVESTMENT AND SOME TAX INCENTIVES FOR SMALL BUSINESS INVESTMENT BUT CONCOCTING SUCH A FORMULA WILL REQUIRE NEGOTIATING PEACE AMONG QUARRELING DEMOCRATIC FACTIONS AND BAYING SPECIAL INTERESTS SO FRACTIOUS THAT THEY RESEMBLE A ROSTER OF ITALIAN POLITICAL PARTIES AND EVEN GETTING AN ECONOMIC PACKAGE THROUGH WON'T HELP MR CLINTON IF IT SCARES THE FINANCIAL MARKETS OR SENDS THE ECONOMY SOUTH THE STAKES FOR HIM ARE HIGH BECAUSE HE NEEDS TO GET AN ECONOMIC PLAN THAT WORKS SAYS AL FROM A CLINTON ALLY WHO IS PRESIDENT OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL YET AS GREAT AS THE STAKES ARE FOR BILL CLINTON THEY ARE ALSO HUGE FOR EVERYBODY ELSE THIS CONFERENCE WILL DETERMINE HOW MUCH MORE AMERICANS PAY FOR A GALLON OF GASOLINE AND WHETHER THEY ALSO PAY A BIT MORE ON THEIR UTILITY BILLS IT WILL DETERMINE HOW MUCH OF A TAX CREDIT IS RECEIVED BY THE WORKING POOR AND HOW MUCH DOCTORS RECEIVE FOR TREATING MEDICARE PATIENTS IT WILL DECIDE THE TAX BITE FOR EVERY US CORPORATION IN GENERAL AS WELL AS THE TAX BREAKS OFFERED SMALL BUSINESSES IN PARTICULAR THE REVERBERATIONS WILL ALSO BE MASSIVE IN WASHINGTON POLITICAL TERMS REPUBLICANS FOR INSTANCE HAVE SERVED NOTICE THEY WON'T COOPERATE IN PASSING THE CLINTON PROGRAM AND IF THE NEGOTIATING PROCESS COLLAPSES THEY RISK BEING BLAMED FOR CAUSING GRIDLOCK AT THE SAME TIME THOUGH IF THE NEGOTIATIONS SUCCEED AND IT THEN TURNS OUT THAT CLINTONOMICS WORKS THEY RISK BEING PROVEN HUMILIATINGLY WRONG IN THEIR ALLOUT ATTACK ON IT AMONG THE DEMOCRATS IN CONGRESS TWO PARTICULAR GROUPS WILL BE UNDER SPECIAL SCRUTINY ONE IS THE CONGRESSIONAL BLACK CAUCUS WHOSE MEMBERS WILL BE TORN BETWEEN THEIR DESIRE TO SEE MR CLINTON SUCCEED AND THEIR IMPASSIONED VOWS TO SHOOT DOWN ANY PLAN WITHOUT URBAN INVESTMENT INITIATIVES AND TAX CREDITS FOR THE POOR THE RISKS ARE EQUALLY HIGH FOR CONSERVATIVE SOUTHERN DEMOCRATS WHO HAVE STAKED THEIR REPUTATIONS ON HOLDING DOWN ENERGY TAXES AND RATCHETING UP SPENDING CUTS ON THE SURFACE THERE ARE MANY SIMILARITIES BETWEEN THE HOUSE AND SENATE BILLS MORE THAN THREEQUARTERS OF EACH MEASURE IS IDENTICAL OR NEARLY IDENTICAL TO MR CLINTON'S ORIGINAL PLAN BUT THE CHOICES THAT HAVE TO BE MADE ON THE FINAL QUARTER OF THE PACKAGE ARE THE MOST EMOTIONAL AND POLITICALLY EXPLOSIVE EACH BILL WOULD RAISE IN THE NEIGHBORHOOD OF 250 BILLION IN TAXES AND MAKE ROUGHLY 90 BILLION OF CUTS IN MANDATORY SPENDING PROGRAMS PROPONENTS CLAIM BOTH BILLS REACH 500 BILLION IN DEFICIT REDUCTION BECAUSE THEY WOULD ALSO PRODUCE SAVINGS BY EXTENDING EXISTING SPENDING CAPS AND BY REDUCING INTEREST PAYMENTS ON THE FEDERAL DEFICIT AS IT COMES DOWN THE CENTRAL ISSUE INVOLVES ENERGY TAXES THE HOUSE APPROVED MR CLINTON'S BROADBASED ENERGY TAX WHICH WOULD RAISE 715 BILLION OVER FIVE YEARS CONSERVATIVE DEMOCRATS IN THE SENATE SHOT THAT DOWN AND SUBSTITUTED A 43 CENTAGALLON GASOLINE TAX THAT WOULD RAISE 216 BILLION THAT YAWNING 50 BILLION GAP IS WHAT MOST OF THE FIGHTING WILL BE ABOUT HOUSE LIBERALS WERE COUNTING ON THAT MONEY TO PAY FOR 283 BILLION IN EARNEDINCOME TAX CREDITS FOR THE POOR TO START 10 URBAN EMPOWERMENT ZONES TO EXPAND THE FOODSTAMP PROGRAM AND TO HOLD DOWN MEDICARE CUTS MODERATES WERE COUNTING ON THE MONEY TO PAY FOR A CAPITAL GAINS TAX CUT FOR SMALLBUSINESS INVESTMENTS BUT THE SENATE BILL PROVIDES 10 BILLION LESS IN EARNEDINCOME TAX CREDITS NO EMPOWERMENT ZONES NO CAPITAL GAINS TAX CUT FOR SMALL BUSINESSES AND 8 BILLION MORE IN REDUCTIONS IN FUTURE MEDICARE SPENDING THE ECONOMIC PLAN WON'T BE PASSED UNLESS LIBERALS ARE SATISFIED THAT SOME OF THOSE PROGRAMS HAVE BEEN RESTORED TO DO THAT IT APPEARS THAT MR CLINTON AND HIS ALLIES WILL HAVE TO FIGURE OUT A WAY TO RAISE MORE IN ENERGY TAXES ONE POSSIBILITY IS A TAX ON CONSUMER UTILITY BILLS BUT IF ENERGY TAXES ARE RAISED MORE THAN MARGINALLY THE PRESIDENT WILL LOSE THE VOTES OF EQUALLY ESSENTIAL CONSERVATIVE DEMOCRATS ALREADY LEERY OF VOTING FOR ANY KIND OF PACKAGE AS IF THE EQUATION WEREN'T DELICATE ENOUGH SOME OF WASHINGTON'S MOST POWERFUL AND WELLHEELED SPECIAL INTERESTS ARE DEEPLY INVOLVED THE OIL INDUSTRY WHICH WILL BE DIRECTLY AFFECTED BY THE ENERGY DELIBERATIONS GAVE 47 BILLION IN UNRESTRICTED SOFTMONEY DONATIONS TO THE REPUBLICAN AND DEMOCRATIC PARTIES IN THE LAST ELECTION CYCLE THE SECONDHIGHEST TOTAL OF ANY INDUSTRY ACCORDING TO FIGURES COMPILED FOR THE WALL STREET JOURNAL BY THE CENTER FOR RESPONSIVE POLITICS OILRELATED POLITICAL ACTION COMMITTEES CONTRIBUTED 71 MILLION TO VARIOUS CANDIDATES RANKING IT IN THE TOP 10 AMONG ALL INDUSTRIES THE AIR TRANSPORT INDUSTRY WHICH WILL BE WORKING TO ENSURE THAT GASOLINE TAXES DON'T APPLY TO ITS FUEL WAS ANOTHER TOP10 PAC GIVER CONTRIBUTING 95 MILLION PACS ASSOCIATED WITH THE ELECTRIC UTILITIES AND NATURAL GAS INDUSTRIES WHICH WOULD BE AFFECTED BY ANY UTILITY TAX GAVE 58 MILLION AND PACS REPRESENTING HEALTH PROFESSIONALS WHICH WILL BE AFFECTED BY CUTS IN MEDICARE WERE THE BIGGEST GIVERS AMONG ALL INDUSTRY GROUPS CONTRIBUTING 176 MILLION IN THE LAST ELECTION CYCLE IN SHORT THE CONFERENCE NEGOTIATIONS REPRESENT A STAGE SET FOR AN EXTRAORDINARY SPECTACLE THE ONLY QUESTION NOW IS WHO THE WINNERS WILL BE AND WHO THE LOSERS WHATEVER THE OUTCOME OBSERVES RETIRED HOUSE REPUBLICAN LEADER JOHN RHODES OF ARIZONA THEY'RE GOING TO NEED A LOT OF PEOPLE WITH MOPS TO GET THE BLOOD OFF THE FLOOR SEE RELATED STORY WHILE CLINTON RETURNS FROM TOKYO PERHAPS HOLDING A PSYCHOLOGICAL EDGE WSJ JULY 12 1993 TAXING MATTERS CHANGE IN FEDERAL TAXES PAID BY FAMILIES AT VARIOUS INCOME LEVELS UNDER HOUSE AND SENATE VERSIONS OF THE TAX BILL HOUSE BILL PLUS LOWINCOME INCOME SENATE BILL HOUSE BILL OFFSETS LESS THAN 10000 83 61 265 1000020000 44 16 34 2000030000 08 08 06 3000040000 08 24 23 4000050000 12 28 28 5000075000 15 26 26 75000100000 15 23 23 100000200000 20 23 23 200000 OR MORE 186 172 172 ALL INCOMES 41 48 46 NOTE ALL CHANGES ARE MEASURED AT 1994 INCOME LEVELS USING THE FULL EFFECTS OF PROPOSED TAX LAW CHANGES WHEN COMPLETED IN 1998 INCLUDES THE EFFECTS OF PROPOSED INCREASES IN FOOD STAMPS AND LOWINCOME HOUSEHOLD ENERGY ASSISTANCE SOURCE CONGRESSIONAL BUDGET OFFICE 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 WSJ JULY 13 1993 9307120064 930712 ECONOMY DES MOINES DRINKING WATER CONTAMINATED BY FLOODING DES MOINES IOWA THE MIDWEST FLOOD KNOCKED OUT A WATER SYSTEM HERE SUPPLYING MORE THAN 250000 RESIDENTS AND AUTHORITIES WARNED IT MIGHT BE A WEEK BEFORE THE SYSTEM IS OPERATING AGAIN TO MAKE MATTERS WORSE ELECTRICAL POWER WENT OUT IN MUCH OF THE CITY INCLUDING PARTS OF DOWNTOWN MIDWEST POWER SYSTEMS INC OFFICIALS SAID IT MAY BE SEVEN DAYS OR LONGER BEFORE POWER IS RESTORED SEVERAL SUBSTATIONS WERE FLOODED MANY BUSINESSES PLAN TO REMAIN CLOSED TODAY A LEVEE ALONG THE SWOLLEN RACCOON RIVER BROKE DURING AN OVERNIGHT RAINSTORM AND MUDDY RIVER WATER CONTAMINATED THE DES MOINES WATER WORKS AS DAWN CAME HORDES OF RESIDENTS MOBBED GROCERY AND CONVENIENCE STORES SNAPPING UP BOTTLED WATER ICE AND FOOD IOWA GOV TERRY E BRANSTAD DECLARED POLK COUNTY A DISASTER AREA ORDERING THE NATIONAL GUARD TO SET UP EMERGENCY WATERDISTRIBUTION SITES USING TRUCKEDIN WATER THE DES MOINES RIVER WHICH RUNS THROUGH DOWNTOWN BRUSHED BOTTOMS OF BRIDGES AND WASHED OVER A RAILROAD TRESTLE VOLUNTEERS PACKED THOUSANDS OF NYLON BAGS WITH SAND TO PROTECT GOVERNMENT OFFICE BUILDINGS FRONTING THE RIVER A 235ROOM EMBASSY SUITES HOTEL WITH NEITHER ELECTRICITY NOR WATER WAS EVACUATED WATER FLOODED THE BASEMENT OF THE CITY'S MAIN PUBLIC LIBRARY 9307120063 930712 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITISH FOREIGN MINISTER DOUGLAS HURD CONCLUDED A VISIT TO BEIJING AMID SIGNS THAT RELATIONS BETWEEN BRITAIN AND CHINA ARE BACK ON A SOUND FOOTING THE RAPPROCHEMENT FOLLOWS A SLOW DEESCALATION OF THE TWO GOVERNMENTS' NINEMONTHOLD DISPUTE OVER DEMOCRATIC REFORM IN HONG KONG IT HASN'T PRODUCED EXPECTATIONS OF QUICK BREAKTHROUGHS ON WIDER BILATERAL DISAGREEMENTS OVER THE COLONY'S 1997 TRANSFER TO CHINESE RULE YET IT SEEMS TO CONFIRM A MUTUAL DESIRE TO MOVE BEYOND ANGRY PROPAGANDA AND TACKLE DISAGREEMENTS IN A BUSINESSLIKE MANNER MR HURD'S VISIT LAST WEEK WITH CHINA'S PRESIDENT JIANG ZEMIN AND ITS VICE PREMIER IN CHARGE OF FOREIGN AFFAIRS QIAN QICHEN YIELDED NO PRONOUNCEMENTS OF MAJOR AGREEMENTS WHAT IT DID PRODUCE WAS A RAFT OF CONGENIAL LANGUAGE THAT HAS BEEN LONG ABSENT ONE SMALL PRIZE MR HURD TOOK WITH HIM FROM BEIJING WAS CHINA'S ENDORSEMENT FOR WORK TO BEGIN ON A LARGE RECLAMATION PROJECT ON HONG KONG ISLAND THE RECLAMATION FORMS A CRUCIAL PART OF THE COLONY'S AIRPORT PROJECT THE SUBJECT OF YEARS OF TEDIOUS SINOBRITISH DISCUSSIONS SLOVAKIA DEVALUED ITS KORUNA CURRENCY 10 AGAINST CONVERTIBLE CURRENCIES IN A BID TO AID ECONOMIC RECOVERY THE GOVERNMENT HAD BEEN UNDER PRESSURE TO MAKE THE MOVE SINCE FEB 8 WHEN THE FORMER CZECHOSLOVAK KORUNA WAS SPLIT IN TWO FOLLOWING THE JAN 1 DISSOLUTION OF THE COUNTRY LAST MONTH SLOVAKIA REACHED AGREEMENT WITH THE INTERNATIONAL MONETARY FUND FOR A LOAN CONDITIONED ON A BALANCED BUDGET AND A DEFICIT THAT DOESN'T EXCEED 5 OF GROSS DOMESTIC PRODUCT SLOVAKIA IS TRYING TO FIND SOLUTIONS TO 12 UNEMPLOYMENT INEFFICIENT INDUSTRIES AND DECLINING TRADE SOUTH AFRICA IS PREPARING FOR A SURGE IN TRADE WITH SOUTHEAST ASIA ONCE APARTHEID IS ELIMINATED BY SCHEDULING SEMINARS MEETINGS EXHIBITIONS AND OTHER EVENTS NEXT MONTH IN MALAYSIA SINGAPORE AND THAILAND THIS MARKS SOUTH AFRICA'S FIRST SUCH EFFORT IN THE REGION TO BOOST AWARENESS OF MUTUAL OPPORTUNITIES AS CONTACT HAS BEEN LIMITED BY ECONOMIC SANCTIONS AGAINST SOUTH AFRICA THE SOUTH AFRICAN FOREIGN TRADE ORGANIZATION HAS ARRANGED FOR MORE THAN 70 SOUTH AFRICAN COMPANIES AND A VARIETY OF SOUTHEAST ASIAN FIRMS TO ATTEND THE REGIONAL MEETINGS THE BUNDESRAT GERMANY'S UPPER HOUSE OF PARLIAMENT APPROVED A COMPROMISE TAXREFORM BILL TO TAKE EFFECT JAN 1 THE MEASURE APPROVED EARLIER BY THE BUNDESTAG OR LOWER HOUSE CUTS TOP RATES ON CORPORATE TAXES TO 47 FROM 53 ON RETAINED PROFITS TO 45 FROM 50 AND ON DISTRIBUTED PROFITS TO 30 FROM 36 TO BALANCE THE REDUCTIONS OTHER PROVISIONS INCREASE REVENUE SUCH AS BY ELIMINATING AN OFFICEDEPRECIATION ALLOWANCE CHINA WILL ESTABLISH ITS FIRST VEHICLE EXCHANGE SPONSORED JOINTLY BY THE MINISTRY OF INTERNAL TRADE AND THE CITY OF SHANGHAI THE SHANGHAI MOTOR VEHICLE EXCHANGE WILL FACILITATE THE SALE TO OTHER BUSINESSES OF CARS TRUCKS BUSES AND REFITTED MOTOR VEHICLES BY CHINA'S AUTO MAKERS THE XINHUA NEWS AGENCY SAID INITIALLY 70 MEMBERS WILL BE ADMITTED INCLUDING VEHICLE PRODUCERS AND A SMALL NUMBER OF BANKING AND FOREIGN TRADE ENTERPRISES CHINA'S AUTO INDUSTRY WHICH DEVELOPED RAPIDLY DURING THE 1980S NOW TURNS OUT ABOUT ONE MILLION CARS A YEAR MOSCOW MAYOR YURI LUZHKOV RAISED THE PRICE OF GASOLINE 25 IN THE RUSSIAN CAPITAL ANGERING MOTORISTS WHO HAVE ENDURED SEVERAL SHARP INCREASES ALREADY THIS YEAR THE WEST HAS URGED RUSSIA TO RAISE ITS FUEL PRICES TO WORLD LEVELS ARGUING THAT ARTIFICIALLY LOW ENERGY COSTS DISTORT THE ECONOMY AND SUBSIDIZE INEFFICIENT FACTORIES AT 38 US CENTS A GALLON THE PRICE OF RUSSIAN GASOLINE STILL IS BELOW WESTERN STANDARDS BUT IS RELATIVELY EXPENSIVE FOR RUSSIANS WHO ARE PAID AN AVERAGE OF 28 A MONTH PRESIDENT BORIS YELTSIN LIFTED PRICE CONTROLS ON GASOLINE IN MARCH THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION WHICH IN JANUARY PREDICTED THAT 1993 SALES AMONG ITS 17 MEMBER COUNTRIES WOULD SLUMP AN AVERAGE OF 10 SAID IT NOW EXPECTS A 16 PLUNGE IT'S THE WORST RECESSION THE INDUSTRY HAS SEEN SINCE WORLD WAR II THE BRUSSELSBASED WEST EUROPEAN TRADE GROUP SAID AND WE DON'T SEE ANY END IN SIGHT FRANCE'S AUTO MAKERS ASSOCIATION ALSO NOTED AN ABSENCE OF ANY RECOVERY SIGNS THE INDUSTRY'S PAIN BECAME CLEARER FROM FIRSTHALF DATA THAT SHOWED SALES SKIDDED 18 FROM A YEAR EARLIER ALARMING EVEN FOR RECESSIONWRACKED EUROPE OF EUROPE'S FIVE HIGHVOLUME AUTO MARKETS FOUR REGISTERED DECLINES IN THE FIRST HALF FRANCE 18 GERMANY EUROPE'S LARGEST MARKET 21 ITALY 23 AND SPAIN 30 THE EXCEPTION WAS BRITAIN WHERE SALES GREW 92 AMID THE COUNTRY'S EMERGENCE FROM RECESSION THE CZECH PARLIAMENT IMPOSED A BAN STARTING JAN 1 ON IMPORTS OF MATERIALS THAT DAMAGE EARTH'S OZONE LAYER AND PROHIBITED THEIR EXPORT AND USE EFFECTIVE JAN 1 1996 BRAZIL'S CONGRESS PASSED A 025 TAX ON EVERY CHECK AND SAVINGSACCOUNT WITHDRAWAL PART OF GOVERNMENT EFFORTS TO CUT THE BUDGET DEFICIT A MAJOR CAUSE OF RUNAWAY INFLATION 9307120062 930712 CLINTON APPOINTS CORRIGAN TO RUSSIAN FUND POSITION TOKYO PRESIDENT CLINTON NAMED GERALD CORRIGAN DEPARTING PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK TO HEAD THE RUSSIANAMERICAN ENTERPRISE FUND WHICH IS TO PROMOTE PRIVATESECTOR DEVELOPMENT IN RUSSIA THE CLINTON ADMINISTRATION PLANS TO CAPITALIZE THE FUND WITH MORE THAN 300 MILLION IN GOVERNMENT MONEY OVER THE NEXT THREE TO FOUR YEARS THE FUND TO BE MANAGED BY A PRIVATE BOARD WILL MAKE EQUITY INVESTMENTS AND LOANS AND OFFER TECHNICAL ASSISTANCE TO SMALL AND MEDIUMSIZED ENTERPRISES OTHER DIRECTORS OF THE FUND WILL INCLUDE ROBERT M BROWN III MANAGING DIRECTOR OF LEHMAN BROTHERS SARAH CAREY A PARTNER IN THE LAW FIRM OF STEPTOE & JOHNSON FORMER COLORADO SEN GARY HART ROBERT HORMATS VICE CHAIRMAN OF GOLDMAN SACHS INTERNATIONAL DELANO LEWIS PRESIDENT C&P TELEPHONE CO EARL MOLANDER PROFESSOR AT PORTLAND STATE UNIVERSITY IN OREGON ROBERT STRAUSS FORMER US AMBASSADOR TO RUSSIA AND RICHARD TURNER SENIOR VICE PRESIDENT SOUTH SHORE BANK CHICAGO MR CORRIGAN ANNOUNCED EARLIER THIS YEAR THAT HE WAS RESIGNING FROM THE FED EFFECTIVE AUG 20 9307120061 930712 BUSINESS BRIEF APPLE COMPUTER INC FREEZE IN SALARIES IS IMPOSED ON ALL WORKERS INDEFINITELY APPLE COMPUTER INC SAID IT HAS IMPOSED AN INDEFINITE SALARY FREEZE ON ALL EMPLOYEES AS PART OF ITS CONTINUING EFFORTS TO CUT COSTS THE COMPUTER MAKER ALSO SAID IT HAS INSTITUTED AN ACROSSTHEBOARD HIRING FREEZE HOWEVER A SPOKESWOMAN SAID EXCEPTIONS TO THE HIRING BAN COULD BE MADE FOR A FEW UNSPECIFIED VERY STRATEGIC POSITIONS LAST WEEK APPLE SAID IT WOULD DISMISS 2500 EMPLOYEES OR 16 OF ITS WORK FORCE AND CUT THE PAY OF EXECUTIVES FROM THE VICE PRESIDENT LEVEL ON UP BY 5 ANALYSTS HAVE ESTIMATED THE COMPANY WILL TAKE A CHARGE OF 250 MILLION TO 300 MILLION IN ITS THIRD QUARTER ENDED JUNE 25 TO PAY FOR THE LAYOFFS APPLE CUPERTINO CALIF IS SEEKING TO REVITALIZE ITS EARNINGS IN THE FACE OF A PERSONAL COMPUTER PRICE WAR THAT WREAKED HAVOC WITH THE INDUSTRY'S PROFITS AND FORCED APPLE TO STREAMLINE OPERATIONS 9307120060 930712 INTERNATIONAL BRIEF FIAT SPA AUTO MAKER SLATES LAYOFFS TO CUT SEPTEMBER OUTPUT REACTING TO A STEEP SLUMP IN THE EUROPEAN CAR MARKET ITALIAN AUTO MAKER FIAT SPA SAID IT WOULD LAY OFF BETWEEN 16150 AND 38650 WORKERS FOR A WEEK IN SEPTEMBER TO CUT ITS PRODUCTION BY 54800 CARS THE ONLY FIAT PRODUCTION LINE UNAFFECTED BY THE SUSPENSIONS IS THE MIRAFIORI FACTORY IN TURIN WHICH MAKES THE PUNTO MODEL DUE TO BE LAUNCHED THIS YEAR FIAT SAID THAT 18700 WORKERS WILL BE LAID OFF IN THE FIRST WEEK OF SEPTEMBER 16150 IN THE SECOND WEEK 38650 IN THE THIRD AND 27900 IN THE FOURTH FIAT WHICH PRODUCES FIAT ALFA ROMEO MASERATI AND LANCIA CARS HAS RESORTED TO SUCH TEMPORARY LAYOFFS SINCE 1991 AMID FALLING SALES AND GROWING INVENTORIES OF CARS LAYOFFS IN JULY ARE INTENDED TO CUT PRODUCTION BY 61000 CARS 9307120059 930712 ECONOMY CROP INSURANCE OVERHAUL WASHINGTON AGRICULTURE SECRETARY MIKE ESPY SAID HE WILL PROPOSE CHANGES IN THE FEDERAL CROPINSURANCE PROGRAM IN THE WAKE OF THE DISASTROUS FLOODING IN THE MIDWEST SPEAKING YESTERDAY ON THE ABC NEWS PROGRAM THIS WEEK WITH DAVID BRINKLEY MR ESPY SAID OF THE CURRENT SYSTEM I THINK IT'S A DISASTER IT'S UNWORKABLE UNREASONABLE TOO EXPENSIVE AND SIMPLY UNFAIR THE PROGRAM HAS BEEN CRITICIZED FOR AMONG OTHER THINGS FAILING TO PROVIDE BENEFITS TO FARMERS WHO ARE UNABLE TO PLANT CROPS BECAUSE OF A DISASTER ALSO SOME FARMERS ARE RELUCTANT TO BUY INSURANCE REASONING THAT THE GOVERNMENT WILL BAIL THEM OUT WHETHER OR NOT THEY HAVE COVERAGE MR ESPY SAID CROP LOSSES COULD TOP 1 BILLION HE SAID THE GOVERNMENT HOPES TO MAKE PAYMENTS OF AT LEAST 50 CENTS ON THE DOLLAR FOR QUALIFYING LOSSES THE CLINTON ADMINISTRATION PLANS TO SEND A PROPOSAL TO CONGRESS THIS WEEK SEEKING FUNDS TO HELP THE REGION 9307120058 930712 WITH NEGOTIATIONS AT AN IMPASSE AIR IS GREEN WITH RECRIMINATIONS BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE US ENVIRONMENTAL PROTECTION AGENCY AND THE OWNERS OF THE NATURE CO ARE AT ODDS AN ENVIRONMENTALIST HAS A TOUGH TIME TAKING SIDES THE NATURE CO IS A CHAIN OF 103 STORES FEATURING A CLEAN GREEN WORLD OF ENVIRONMENTAL GOODS RECYCLED STATIONERY SKIN LOTION MADE FROM RAINFOREST INGREDIENTS BIRD FEEDERS AND PHOTOS OF SEA OTTERS AND ASPEN GROVES NOTWITHSTANDING ALL THAT THE EPA IS FEUDING WITH THE NATURE CO'S PARENT CML GROUP INC OF ACTON MASS OVER WHO SHOULD PAY TO CLEAN UP A VACANT LOT CML OWNS IN CONWAY NH THE PROPERTY IS CONTAMINATED WITH A POWDERY POLLUTANT THAT CAN CAUSE LUNG DISEASE THE EPA SAYS THE CLEANUP NOW IN PROGRESS IS EXPECTED TO COST UP TO 4 MILLION THE EPA SAYS THE WASTE WAS LEFT BY KEARSARGE METALLURGICAL CORP WHICH CEASED OPERATIONS IN 1982 AND WENT BANKRUPT CML PURCHASED THE LOT NEXT TO KEARSARGE WITH PLANS TO USE IT AS A PARKING LOT FOR A WOMEN'S CLOTHING STORE IT THEN OWNED IN CONWAY IN 1991 THE EPA NOTIFIED CML THAT IT WAS POTENTIALLY RESPONSIBLE FOR REIMBURSING THE AGENCY FOR CLEANING UP THE LOT THE LAW SAYS IF YOU OWN THE PROPERTY YOU OWN THE CONTAMINATION UNLESS YOU CAN FIND SOMEONE ELSE WHO IS RESPONSIBLE FOR IT SAYS ALICE KAUFMAN A SPOKESWOMAN FOR THE EPA IN BOSTON CML SAYS IT SHOULDN'T BE HELD RESPONSIBLE FOR POLLUTION IT DIDN'T CAUSE AND IN RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION CML SAID THE EPA'S ESTIMATED COST FOR CLEANUP INCLUDING THE PROPOSED REMEDIAL ACTIONS IS EXCESSIVE AND INVOLVES UNNECESSARY ACTIONS THE AGENCY CML SAYS IS ALSO TRYING TO STICK IT WITH THE CLEANUP BILL FOR THE KEARSARGE LOT WHICH IT DOESN'T EVEN OWN NEGOTIATIONS BETWEEN THE TWO SIDES HAVE BROKEN DOWN CML OFFICIALS BRISTLE AT THE SUGGESTION THAT THE OWNER OF THE NATURE CO WHOSE MISSION STATEMENT SAYS IT IS DEDICATED TO PROVIDING PRODUCTS AND EXPERIENCES WHICH ENCOURAGE THE JOYOUS OBSERVATION UNDERSTANDING AND APPRECIATION OF THE WORLD OF NATURE MAY BE SHIRKING ITS ENVIRONMENTAL RESPONSIBILITY AT LEAST THE WAY FEDERAL LAW IS CURRENTLY WRITTEN WE HAD NOTHING TO DO WITH IT WHATSOEVER SAYS CHIEF EXECUTIVE OFFICER CHARLES M LEIGHTON ADDING IN RETAIL I WOULD SAY THE MOST ENVIRONMENTALLY DANGEROUS THING WE USE IS THE SOAP OUR EMPLOYEES USE TO WASH THEIR FACE 9307120057 930712 MARKETING & MEDIA HEARST UNIT RESHUFFLES 4 OF ITS MAGAZINE PUBLISHERS NEW YORK HEARST MAGAZINES A UNIT OF HEARST CORP REASSIGNED FOUR OF ITS MAGAZINE PUBLISHERS FRIDAY IN ANOTHER INDICATION OF A TIGHTENING ADVERTISING MARKET IN THE MAGAZINE INDUSTRY HEARST MAGAZINES PRESIDENT D CLAEYS BAHRENBURG NAMED NEW PUBLISHERS AT COSMOPOLITAN REDBOOK AND COUNTRY LIVING THREE OF ITS LARGEST AND HISTORICALLY MOST PROFITABLE MAGAZINES ADVERTISING PAGES FROM THE FIRST HALF OF THIS YEAR WERE UP SIGNIFICANTLY AT REDBOOK AND COUNTRY LIVING BUT OFF 10 AT COSMOPOLITAN ACCORDING TO PUBLISHERS INFORMATION BUREAU TONY HOYT WAS NAMED THE NEW PUBLISHER OF COSMOPOLITAN FROM THE SAME POSITION AT REDBOOK TR ROCKY SHEPARD III BECOMES PUBLISHER OF REDBOOK FROM THE SAME POST AT COUNTRY LIVING JAY MCGILL WAS NAMED PUBLISHER OF COUNTRY LIVING FROM THE SAME POSITION AT SPORTS AFIELD AND MOTOR BOATING & SAILING SETH E HOYT MOVES FROM PUBLISHER OF COSMOPOLITAN TO THE HEARST CORPORATE MAGAZINE STAFF ASSIGNED TO SPECIAL PROJECTS HEARST SAID ASSOCIATE PUBLISHERS MICHAEL P WADE OF SPORTS AFIELD AND BRIAN J DOYLE OF MOTOR BOATING & SAILING WILL ASSUME PUBLISHER RESPONSIBILITIES 9307120056 930712 BUSINESS BRIEF HUGHES & LUCE DALLAS FIRM LAWYERS OFFER SETTLEMENT TO AVOID CLAIMS DALLAS LAW FIRM HUGHES & LUCE AND THREE LAWYERS PAID 15 MILLION TO FEDERAL REGULATORS TO SETTLE POTENTIAL CLAIMS FOR ALLEGEDLY IMPROPERLY STRUCTURING TRANSACTIONS ON TWO TROUBLED REALESTATE LOANS BY A BANK IT ADVISED A HUGHES & LUCE PARTNER SAID THE FIRM AND THE LAWYERS SETTLED THE POTENTIAL CLAIMS TO AVOID LITIGATION EVEN THOUGH NEITHER THE FEDERAL DEPOSIT INSURANCE CORP NOR THE OFFICE OF THE COMPTROLLER OF THE CURRENCY SUED THEM THE PARTNER ADDED THAT THE FIRM CONSIDERED THE CLAIMS TOTALLY WITHOUT MERIT THE GOVERNMENT HE SAID QUESTIONED TRANSACTIONS IN 1986 AND 1987 STEMMING FROM TWO REALESTATE LOANS MADE BY MBANK DALLAS WHICH WAS TRYING TO RECOUP THE MONEY IT LOANED REGULATORS SAID THE TRANSACTIONS INCLUDED AN ATTEMPT TO REMOVE THE LOANS FROM THE BANK'S BOOKS WHEN THE BANK'S ACCOUNTING PRACTICES CALLED FOR RECORDING THE LOANS THE THREE LAWYERS ARE LINTON BARBEE LEWIS SWEET AND DANIEL HENNESSY ALL HUGHES & LUCE PARTNERS INVOLVED IN THE TRANSACTIONS ONLY MR HENNESSY CONTINUES TO PRACTICE WITH THE FIRM 9307120055 930712 BUSINESS BRIEF COMPAQ COMPUTER CORP LETTER OF INTENT IS SIGNED TO FORM CHINESE VENTURE COMPAQ COMPUTER CORP SIGNED A LETTER OF INTENT TO FORM A MANUFACTURING JOINT VENTURE WITH CHINA'S LARGEST PRIVATE HIGHTECH ENTERPRISE THE COMPUTER MAKER SAID THE VENTURE WILL USE 40000 SQUARE FEET OF A FACILITY OWNED BY BEIJING STONE GROUP CORP TO MAKE PERSONAL COMPUTERS THE COMPUTERS ARE NEEDED TO MEET THE GROWING DEMAND FOR COMPAQ PRODUCTS IN CHINA AND OTHER PARTS OF THE WORLD PRODUCTION IS EXPECTED TO BEGIN THIS DECEMBER UNDER THE 11YEAR AGREEMENT THE VENTURE WILL LEASE AND MANAGE THE FACILITY TO OPERATE PRINTED CIRCUIT BOARD AND FINAL PRODUCT ASSEMBLY LINES COMPAQ HOUSTON ENTERED THE CHINESE MARKET ON A LIMITED BASIS IN 1984 BECOMING MORE ACTIVE IN THE MARKET IN 1990 9307120054 930712 BUSINESS BRIEF BENEFICIAL CORP WESCO UNIT IS REPURCHASED FROM CONSOLIDATED INSURANCE BENEFICIAL CORP SAID ITS BENEFICIAL INSURANCE GROUP HOLDING CO UNIT BOUGHT BACK WESCO INSURANCE CO FROM CONSOLIDATED INSURANCE GROUP OF AMERICA TERMS WEREN'T DISCLOSED A BENEFICIAL SPOKEMAN SAID THE COMPANY SOLD WESCO TO CONSOLIDATED IN 1987 WHEN WESCO OFFERED SERVICES IN ONLY A FEW STATES UNDER A LONGTERM AGREEMENT HOWEVER WESCO CONTINUED TO SERVE CREDITRELATED PROPERTY INSURANCE FOR THE BENEFICIAL CONSUMER FINANCE NETWORK BENEFICIAL SAID BENEFICIAL WILMINGTON DEL SAID WESCO HAS EXPANDED INTO 40 STATES AND THE DISTRICT OF COLUMBIA SINCE 1987 AND THAT WESCO'S POLICY PORTFOLIO CONSISTS ALMOST ENTIRELY OF BENEFICIALRELATED COVERAGE BENEFICIAL INSURANCE GROUP HOLDING SAID IT NAMED DANIEL R O'BRIEN PRESIDENT OF ITS BENEFICIAL INSURANCE GROUP INC UNIT PRESIDENT OF WESCO THE COMPANY SAID THE PURCHASE WILL ALLOW US TO DIRECTLY UNDERWRITE OUR PROPERTY AND CASUALTY COVERAGE FOR AFFILIATE COMPANIES INCLUDING CREDITRELATED INSURANCE THROUGH THE BENEFICIAL CONSUMER FINANCE NETWORK 9307120052 930712 CORRECTIONS & AMPLIFICATIONS A HALFPERCENTAGE POINT RISE IN FOOD INFLATION WHICH ONE ECONOMIST FORESEES AS A RESULT OF MIDWEST FLOODING WOULD REPRESENT 31 BILLION OF FOOD AND BEVERAGE SPENDING THE FIGURE WAS MISSTATED AS 31 BILLION IN A PAGEONE ARTICLE FRIDAY THE MARKET DIARY INFORMATION IN THE STOCK MARKET DATA BANK WAS INCORRECT IN FRIDAY'S EDITION TODAY'S STOCK MARKET DATA BANK ON PAGE C2 INCLUDES CORRECTED DATA FOR THURSDAY GRANITE COMMUNICATIONS INC OF NASHUA NH MAKES THE HANDHELD COMPUTERS USED BY THE AMERICAN STOCK EXCHANGE IN AN ARTICLE FRIDAY THE NAME OF THE COMPANY WAS INCORRECT BASED ON INFORMATION PROVIDED BY THE AMEX THREE KOREABASED REPRESENTATIVES FOR SUNRIDER INTERNATIONAL A US HOMEPRODUCTS RETAILER HAVE BEEN HELD IN THE SEOUL SOUTHERN PROSECUTORS' DETENTION CENTER SINCE JUNE 29 ON SUSPICION OF VIOLATING KOREA'S DIRECTSALES LAW AN ARTICLE THURSDAY INCORRECTLY STATED THAT THEY HAD BEEN FREED TWO EMPLOYEES OF AMWAY CORP WHO WERE JAILED ON JUNE 30 ON SIMILAR CHARGES WERE RELEASED EIGHT DAYS LATER PILLSBURY CO CEASED SWEETCORN PRODUCTION IN HOOPESTON ILL IN 1986 GRAND METROPOLITAN PLC PURCHASED PILLSBURY IN 1989 AN ARTICLE FRIDAY INCORRECTLY SUGGESTED THAT GRAND METROPOLITAN HALTED CORN CANNING AT THE PLANT QUINCY SAVINGS BANK'S TOTAL ASSETS WERE 8789 MILLION ON DEC 31 1992 IN AN ARTICLE FRIDAY ASSETS WERE MISTAKENLY REPORTED AS 325 MILLION A 14 MILLION AFTERTAX CHARGE THAT QUINCY SAVINGS EXPECTS TO REPORT FOR THE SECOND QUARTER INCLUDES A 32 MILLION PRETAX WRITEDOWN OF GOODWILL RELATED TO DEPOSITS ACQUIRED IN A 1988 ACQUISITION THE ARTICLE INCORRECTLY STATED THAT THE COMPANY WAS WRITING DOWN 32 MILLION IN DEPOSITS 9307120051 930712 BUSINESS BRIEF MAGNA GROUP INC CITY BANCORP TO BE ACQUIRED FOR 124 MILLION IN STOCK MAGNA GROUP INC SAID IT DEFINITIVELY AGREED TO ACQUIRE CLOSELY HELD CITY BANCORP INC FOR STOCK VALUED AT ABOUT 124 MILLION CITY BANCORP MURPHYSBORO ILL IS A BANK HOLDING COMPANY WITH 86 MILLION IN ASSETS AND STOCKHOLDERS' EQUITY OF 69 MILLION IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MAGNA SHARES CLOSED OFF 25 CENTS AT 17 MAGNA WHICH HAS ABOUT 241 MILLION SHARES OUTSTANDING SAID IT WILL ISSUE 731631 SHARES TO EFFECT THE PURCHASE ACQUISITION OF CITY BANCORP THE PARENT OF CITY NATIONAL BANK WITH FIVE BRANCHES IN THE TOWNS OF MURPHYSBORO CARBONDALE VERGENNES AND GORHAM REPRESENTS AN OPPORTUNITY TO EXPAND MAGNA'S CURRENT COMMUNITY BANK NETWORK IN SOUTHERN ILLINOIS A MAGNA OFFICIAL SAID MAGNA ST LOUIS HAS ASSETS OF ABOUT 36 BILLION AND HAS 85 COMMUNITY BANKING OUTLETS IN MISSOURI AND ILLINOIS 9307120050 930712 HEARD ON THE STREET SUPERBEAR'S FUND RETURNS SWEET 1016 BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL ECONOMISTS THOSE IVORYTOWER THEORETICIANS CAN'T HANDLE REAL PORTFOLIOS OR SO THE MARKET BROMIDE GOES BUT TRY TELLING IT TO A GARY SHILLING HIS PRIVATE INVESTMENT FUND THEMATIC INVESTMENT PARTNERS IN SPRINGFIELD NJ IS UP 1016 SO FAR THIS YEAR GARY SHILLING THE SUPERBEAR THE MAN WHO INCORRECTLY PREDICTED A RECESSION AND BEAR MARKET IN THE LATE 1980S YES THE VERY SAME HE'S STILL A BEAR BUT HIS PESSIMISM ISN'T HURTING HIS INVESTMENT PERFORMANCE IN SOME WAYS IT'S HELPING IT MR SHILLING THINKS DEFLATIONARY FORCES ARE RIPPLING THROUGH THE ECONOMIES OF THE US EUROPE AND JAPAN HE HAS BEEN PLAYING THAT BROAD THEME BY BUYING BONDS AND BY SHORTSELLING OR BETTING AGAINST SELECTED CURRENCIES AND COMMODITIES A CLASSIC TOP DOWN INVESTOR MR SHILLING FIRST IDENTIFIES WHAT HE THINKS ARE MAJOR TRENDS THAT WILL LAST FOR A YEAR OR MORE THEN HE LOOKS FOR STOCKS AND OTHER INVESTMENTS THAT EMBODY THOSE THEMES ONE OF HIS THEMES ERUPTED LIKE A VOLCANO BECAUSE IT WAS ONE MAJOR VOLCANIC ERUPTIONS LIKE THAT OF MOUNT PINATUBO IN 1991 OFTEN CAUSE COLD WINTERS AND UNUSUAL CLIMATE CONDITIONS FOR THREE TO FOUR YEARS AFTERWARDS MR SHILLING SAYS THAT'S ONE REASON HE OWNS NATURAL GAS STOCKS SUCH AS KCS ENERGY AND GLOBAL MARINE HE ALSO HAS BEEN LONG NATURALGAS AND SOYBEAN FUTURES BETTING ON AN INCREASE IN PRICES THE VOLCANO ISN'T THE ONLY REASON TO LIKE NATURAL GAS IT IS THE CLEANEST FUEL NOW THAT NUCLEAR IS OUT FOR EMOTIONAL REASONS MR SHILLING SAYS IT IS ALSO DOMESTIC SO IN A POLITICAL SENSE THERE IS NO ADVERSE BALANCEOFPAYMENTS CONSIDERATION AND THE MULTIYEAR GAS GLUT NOW APPARENTLY OVER HAD DISCOURAGED DRILLING SO IT WILL BE A WHILE BEFORE SUPPLY PICKS UP AGAIN PRODUCTIVITY ENHANCEMENT IS ANOTHER OF MR SHILLING'S THEMES MANUFACTURERS HAVE BEEN TRYING HARD TO BOOST PRODUCTIVITY FOR THE PAST DECADE NOW IT'S THE SERVICE INDUSTRIES' TURN HE SAYS THIS SHOULD HELP COMPANIES THAT PROVIDE COMPUTERS AND COMPUTERNETWORKING EQUIPMENT SUCH AS MOTOROLA AND ORACLE SYSTEMS MEANWHILE THE MOVE TOWARD MORE OF A FREEMARKET ECONOMY IN CHINA SHOULD CREATE TREMENDOUS ECONOMIC GROWTH THERE IN THE NEXT DECADE OR MORE MR SHILLING BELIEVES SO HE LIKES SUCH CHINA PLAYS AS TAIWAN FUND BUT MR SHILLING SEES MAJOR PROBLEMS ON THE REALESTATE FRONT COMMERCIAL REAL ESTATE PROBABLY WON'T FALL MUCH FURTHER BUT HAS LEFT A RESIDUE OF BAD LOANS AND INVESTMENTS HE SAYS RESIDENTIAL REAL ESTATE HE BELIEVES STILL MAY TUMBLE AND IN ANY CASE A HOUSE NOWADAYS IS JUST A HOME NOT NECESSARILY A GOOD INVESTMENT SO HE'S SHORT THE REALESTATE COMPANY TRIZEC THE INSURER EQUITABLE WHICH HOLDS REALESTATE INVESTMENTS ON ITS BOOKS AND SHINGLE MAKER ELCOR MR SHILLING WAS ALREADY WELL KNOWN AS AN ECONOMIC CONSULTANT WHEN HE STARTED MANAGING MONEY ON MAY 31 1990 HIS PARTNERSHIP WAS UP 299 IN THE LAST SEVEN MONTHS OF 1990 DOWN 43 IN 1991 AND UP 268 IN 1992 BEFORE HIS SPECTACULAR SUCCESS THIS YEAR SINCE INCEPTION IT'S UP 2227 COMPARED WITH 375 FOR THE STANDARD & POOR'S 500 STOCK INDEX DESPITE HIS SUCCESS HE STILL MANAGES A RELATIVELY SMALL AMOUNT ABOUT 60 MILLION IN ALL 20 MILLION IN THEMATIC INVESTMENT PARTNERS HIS HIGH RETURNS HAVE BEEN ACHIEVED THROUGH A MIXTURE OF DARING AND COWARDICE MR SHILLING FREQUENTLY BUYS FUTURES CONTRACTS AN INVESTMENT IN WHICH IT'S COMMON TO GAIN OR LOSE MORE MONEY THAN THE AMOUNT INITIALLY INVESTED THIS YEAR FOR EXAMPLE HE HAS BEEN LONG GOLD AS WELL AS NATURALGAS FUTURES AND SHORT LUMBER COPPER AND CRUDEOIL FUTURES BETTING ON A DECLINE IN PRICES IN HIS ACCOUNTS THAT DON'T USE FUTURES HE'S UP ABOUT 12 THIS YEAR NICE BUT NOT SPECTACULAR BUT MR SHILLING TEMPERS HIS BOLD FORAYS INTO THE FUTURES MARKET WITH CERTAIN SAFEGUARDS AGAINST RISK HE TAKES A POSITION CONSISTENT WITH WHAT HE CALLS HIS ECONOMIC THEMES BUT IF HE SUFFERS A 10 LOSS ON A STOCK OR A LOSS ON A FUTURES CONTRACT EQUAL TO 1 OF HIS PORTFOLIO HE IMMEDIATELY ABANDONS HIS POSITION THE MARKETS CAN STAY IRRATIONAL A LOT LONGER THAN WE CAN STAY SOLVENT HE SAYS IN HIS VIEW ECONOMISTS TEND TO BE TOO COCKSURE AND DOCTRINAIRE A HUGE EGO COMES WITH THE TERRITORY HE SAYS BUT BEING TOO STUBBORN IS A ROAD TO DISASTER IF YOU TRY THAT IN A PORTFOLIO YOU'RE GOING TO GET KILLED YOU WON'T HAVE THE MONEY TO MAKE A PHONE CALL ALL OF MR SHILLING'S INVESTMENTS FLOW FROM HIS ECONOMIC VIEWS WHICH ARE STILL FOR THE MOST PART GLOOMY THE 1990S HE SAYS WILL PROBABLY BE CHARACTERIZED BY LONGERTHANUSUAL RECESSIONS AND SHORTERTHANUSUAL RECOVERIES THE PROBLEMS ARE STILL THERE MR SHILLING DECLARES THE THREE BIG DRAGS ON THE US ECONOMY AS HE SEES IT ARE EXCESSIVE DEBT BY CONSUMERS GOVERNMENT AND BUSINESSES TOO MANY PEOPLE EMPLOYED IN THE SERVICE SECTOR LEADING TO THE LIKELIHOOD OF FURTHER LAYOFFS AND THE PROBABILITY OF STAGNANTTODECLINING HOME PRICES IN FACT HE SAYS WE ARE IN A KONDRATIEFF WAVE DEPRESSION A PERIOD OF SLUGGISH OR DECLINING ECONOMIC ACTIVITY THAT EXPONENTS OF THIS LONGTERM WAVE THEORY BELIEVE OCCURS ROUGHLY EVERY 50 YEARS MR SHILLING SAYS PREVIOUS DOWN WAVES HIT IN THE 1830S TO 1840S IN THE 1880S TO 1890S AND IN THE 1930S OVERALL THEN HE SAYS I THINK WE ARE IN A DEFLATIONARY WORLD WITH COMMODITY PRICES AND INTEREST RATES LIKELY TO TREND LOWER THEREFORE HE OWNS BONDS IN THE US FRANCE GERMANY BRITAIN AND ITALY BONDS RISE IN VALUE AS INTEREST RATES FALL HE THINKS THE CENTRAL BANKS IN EUROPE WILL HAVE TO LOWER INTEREST RATES TO COMBAT RECESSION THERE THAT SHOULD HELP HIS BOND POSITIONS BUT IT COULD HURT EUROPEAN CURRENCIES SINCE LOWER RATES OFTEN MAKE A COUNTRY'S CURRENCY LESS ATTRACTIVE TO INTERNATIONAL INVESTORS CURRENTLY HE'S SHORT THE GERMAN MARK AND BRITISH POUND HE'S LONG THE US DOLLAR ON THE GROUNDS THAT WE'RE THE BEST OF A BAD LOT MR SHILLING JUDGES JAPAN'S ECONOMY TO BE IN DEEP DOODOO HE'S SHORTING BOTH THE JAPANESE STOCK MARKET AND THE YEN STOCKS IN TOKYO ROSE IN THE FIRST HALF HURTING MR SHILLING'S PORTFOLIO BUT HE SAYS THE JAPANESE GOVERNMENT'S EFFORTS TO PROP UP THE STOCK MARKET THERE WON'T WORK FOR MUCH LONGER CRUDE OIL AND COPPER ARE TWO GREAT SHORTS MR SHILLING SAYS BOTH ARE PRODUCED BY COUNTRIES WITH HUGE DEBTS IN WEAK FINANCIAL CONDITION WHEN THE PRICE OF EITHER COMMODITY GOES DOWN PRODUCERS TEND TO INCREASE OUTPUT BECAUSE THEY NEED THE MONEY THAT DRIVES THE PRICE DOWN STILL FURTHER IT'S A LOVELY DOWNWARD VICIOUS CYCLE HE SAYS WITH A SMILE DESPITE HIS REDHOT PERFORMANCE THIS YEAR MR SHILLING STOPS SHORT OF BRAGGING TREES DON'T GROW TO THE SKY HE SAYS THIS KIND OF PERFORMANCE IS NOT GOING TO CONTINUE INDEFINITELY 9307120049 930712 ENVIRONMENT FIGHTING BUGS WITH GARLIC AND PEPPERS BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL CASS CURTIS ONCE TOOK A GIANT SWIG OF HIS PESTICIDE TO PROVE THAT IT DOESN'T DO THE TRADITIONAL JOB OF PESTICIDES KILL INSTEAD AS THOSE STANDING NEARBY SOON DISCOVERED IT DOES WHAT GARLIC ITS ONLY INGREDIENT DOES REPEL AN UNCONVENTIONAL PRODUCT PERHAPS BUT ONE WHOSE DAY MAY HAVE ARRIVED WITH CONSUMERS FRIGHTENED BY RECENT WARNINGS THAT CHILDREN ARE OVEREXPOSED TO MANY CHEMICAL PESTICIDES THE 83 BILLION PESTICIDE INDUSTRY COULD START OPENING UP TO LITTLEKNOWN NATURAL PRODUCTS LIKE MR CURTIS'S WHOSE MAKERS HAVE LACKED THE CAPITAL TO COMPETE WITH BIG CHEMICAL COMPANIES WE'D LOVE TO REGISTER LESSTOXIC PRODUCTS AND GET THEM ON THE MARKET QUICKER SAYS AL HEIRER A SPOKESMAN WITH THE ENVIRONMENTAL PROTECTION AGENCY THE PROBLEM IS PEOPLE DON'T NECESSARILY BELIEVE THESE PROCESSES WILL WORK THE AGENCY CHECKS MOST PRODUCTS FOR SAFETY BUT NOT FOR EFFICACY THE CLINTON ADMINISTRATION HAS VOWED TO CUT PESTICIDE USE IN THE US THOUGH AND MORE FARMERS MAY NOW BE WILLING TO TRY PRODUCTS LIKE MR CURTIS'S GARLIC ENVIREPEL WHICH REPORTEDLY KEEPS AWAY PESTS WITHOUT LEAVING POTENTIALLY DANGEROUS RESIDUES ALREADY THE EPA SAYS IT WILL RESTRICT THE RESIDUE LEVELS OF FOUR POPULAR CHEMICAL PESTICIDES ALLOWED IN SOME COMMODITIES MR CURTIS'S PRODUCT IS THE ONLY 100 GARLIC SOLUTION REGISTERED WITH THE EPA BUT IT'S ONE OF A MULTITUDE OF UNUSUAL BIOCHEMICAL PRODUCTS THAT ARE ON THE MARKET BUT NOT WIDELY KNOWN OTHER PRODUCTS INCORPORATE HOT PEPPERS WHICH ARE SAID TO OFFEND BUGS AND SALT WHICH IS KNOWN TO DEHYDRATE THEM THOUGH IT ALSO TEARS UP FARMING EQUIPMENT AND DIATOMACEOUS EARTH A SUPERFINE GRIT CUTS THE WAXY LAYERS ON BUGS' SKIN AND DEHYDRATES THEM SAYS PHIL HUTTON THE EPA'S BIOCHEMICAL AND MICROBIAL PRODUCT MANAGER ALSO POPULAR ARE INSECTICIDAL SOAPS WHICH DISSOLVE THE SKINS OF SOFTBODIED INSECTS MOST OF THESE EPAREGISTERED PRODUCTS ARE USED IN HOME GARDENS NOT ON A COMMERCIAL BASIS BUT THE POTENTIAL IS THERE MR HUTTON SAYS FOR INSTANCE ENVIREPEL IS ALSO MARKETED UNDER THE NAME GUARDIAN SPRAY FOR USE IN BACKYARDS OTHER NOVEL NONCHEMICAL APPROACHES THAT HAVE MANAGED TO SUCCEED ON A LARGE SCALE ARE THE MICROBIALS BACTERIA PROTOZOA AND VIRUSES THAT ALREADY EXIST IN THE ENVIRONMENT AND CAN BE CHANNELED TO INFECT AND KILL INSECTS THE PROBLEM WITH THEM IS THAT A BUG MUST STILL CHOMP ON THE PLANT AT LEAST ONCE TO DIE POTENTIALLY MARRING THE PLANT'S APPEARANCE CRITTERS CAN ALSO BE CONFUSED AND OTHERWISE DETERRED BY PRODUCTS THAT RELEASE OVERDOSES OF PHEROMONES THE SUBSTANCE DISCHARGED BY MATING INSECTS ECOGEN INC A LARGE PENNSYLVANIA BIOTECHNOLOGY COMPANY PLANS TO INTENSIFY ITS DEVELOPMENT OF BIOLOGICAL PESTICIDES LIKE NEWLY REGISTERED NOMATE A SUBSTANCE THAT DISRUPTS THE MATING PROCESS OF TOMATO PINWORMS BUT MANY OF THESE PRODUCTS ARE SO SPECIES SPECIFIC THAT THEY DON'T WARD OFF ENOUGH KINDS OF BUGS TO MAKE THEM PRACTICAL SAYS THE EPA'S MR HUTTON IN ADDITION HE SAYS A LOT OF THESE MAY BE ONLY 80 EFFECTIVE WHEREAS A CHEMICAL COULD BE 99 A LITTLE COSMETIC INJURY ON FOOD IS IMPORTANT IF IT DOESN'T LOOK GOOD PEOPLE WON'T EAT IT STILL EVEN MR CURTIS'S GARLIC ENVIREPEL HAS TAKEN SOME SMALL BUT SIGNIFICANT STEPS INTO THE MARKET ALREADY IT'S BEING PRODUCED BY PRIVATELY HELD GUARDIAN SPRAY CORP OF BAKERSVILLE CALIF AND DISTRIBUTED NATIONWIDE AND IN CENTRAL AMERICA IT IS REGISTERED TO PROTECT EVERYTHING FROM CITRUS FRUIT AND NUT TREES TO VEGETABLES AND VINE CROPS AND THE PESTS IT IS TARGETED AGAINST RANGE FROM WHITEFLIES AND APHIDS TO GRASSHOPPERS AND SPIDERS IT REQUIRES ONLY TWO APPLICATIONS A SEASON AT A COST OF 8 AN ACRE ABOUT HALF THE PRICE OF MANY CHEMICAL PESTICIDES THE PRODUCT IS ABSORBED BY PLANTS SO THAT BUGS DON'T RECOGNIZE THEM AS DESIRABLE FOOD SAYS JACK MAKENZIE ONE OF FOUR GUARDIAN SPRAY OWNERS AND CONSUMERS WHO EAT PRODUCE TREATED WITH THE PRODUCT DON'T ENCOUNTER ANY ODOR OR AFTERTASTE OF COURSE PRODUCTS LIKE ENVIREPEL HAVEN'T STOOD THE TEST OF TIME OR SURVIVED THE ROUNDS OF RIGOROUS TESTING REQUIRED OF WIDELY USED CHEMICAL PESTICIDES CONSEQUENTLY THEY AREN'T WELLKNOWN TO FARMERS AND DON'T HAVE THE CAPITAL BEHIND THEM OF PRODUCTS FROM BIG CHEMICAL PESTICIDE COMPANIES PEOPLE HAVE TRIED FOR YEARS TO FIND FOODTYPE PESTICIDES THAT AREN'T TOXIC SAYS DAN PEACOCK WHO LED THE EPA TEAM THAT REGISTERED ENVIREPEL BUT THESE SMALL COMPANIES DON'T HAVE THE MONEY TO MARKET THEM MOST PEOPLE JUST AREN'T GOING TO RISK TESTING THEIR WHOLE CROPS FOR SOMETHING THEY'RE UNSURE OF FOR PRODUCTS LIKE ENVIREPEL TO BECOME SURE BETS THEY HAVE TO ATTRACT BIG COMPANIES THAT WILL INVEST IN THEM AND PROMOTE THEM BUT INGREDIENTS LIKE GARLIC ARE DIFFICULT TO PATENT AND THEREFORE UNDESIRABLE FOR BUSINESSES LOOKING FOR EXCLUSIVE NICHES IN THE MARKET I DON'T WANT TO DISPARAGE THE PRODUCT BUT IF IT'S SO EFFECTIVE WHY HAVEN'T WE LOOKED AT IT ASKS TIM MANISCALO A SPOKESMAN FOR DOW CHEMICAL CO ONE OF THE NATION'S LARGEST PESTICIDE PRODUCERS BUT HE ALSO CONCEDES THAT WE'RE LOOKING FOR PATENTABLE PROPRIETARY PRODUCTS AND I WOULD DOUBT GARLIC IS ONE THERE ARE WAYS AROUND THAT THOUGH COMPANIES CAN DEVELOP THEIR OWN MEANS OF PROCESSING UNPATENTABLE SUBSTANCES FOR EXAMPLE ECOGEN INC DEVELOPS ITS OWN STRAINS OF BACTERIA TO FIGHT A VARIETY OF BUGS AND ENVIREPEL'S MAKERS CONCOCT THEIR GARLIC SOLUTION THROUGH A SECRET COLDWATER FILTERING PROCESS THEY HAVE BEEN SELLING THE PRODUCT SINCE MARCH AND THEY SAY THAT SALES HAVE DOUBLED EACH MONTH TO ABOUT 100000 IN JUNE WITH THE FACILITIES TO PRODUCE SOME 25000 GALLONS OF ENVIREPEL WEEKLY FROM THE 50 TONS OF RAW ASIAN GARLIC PILED UP IN THEIR FACTORY YARD THEY'RE READY FOR THIS MARKET OPENING THE NEXT STEP IS FINDING THE CUSTOMERS WHO WILL GIVE THE NEW PRODUCTS A SHOT THAT'S THE JOB OF PEOPLE LIKE BRENT REED OF NEW EARTH RESOURCES INC IN HUNTINGTON WVA THE LARGEST DISTRIBUTOR FOR GUARDIAN SPRAY CORP BRENT USES AGRICULTURAL JOURNALS TRADE SHOWS AND UNIVERSITIES TO TRACK DOWN FARMERS LIKE WALKER E DOWNS OF OXFORD MISS MORE AND MORE THESE DAYS MR REED FINDS PESTICIDE USERS WARY OF THE OLD PRODUCTS AND OPEN TO THE NEW SURE THIS STUFF'S STILL UNDER TRIAL BUT IT SEEMS TO BE A GOOD PRODUCT SAYS MR DOWNS OF ENVIREPEL WHY NOT GIVE SOMETHING NATURAL A SHOT SO FAR IT'S DOING EVERYTHING THEY SAID IT WOULD AND I THINK SOME THINGS THEY MIGHT NOT HAVE KNOWN ABOUT 9307120048 930712 BUSINESS BRIEF GEORGE WESTON LTD NORANDA MACMILLAN BLOEDEL SELL PAPER MILL STAKES TO UNITED NORANDA FOREST INC AND MACMILLAN BLOEDEL LTD SAID THEY EACH SOLD THEIR 50 INTEREST IN ISLAND PAPER MILLS CO TO EB EDDY FOREST PRODUCTS LTD A UNIT OF GEORGE WESTON LTD TORONTO EB EDDY WOULDN'T DISCLOSE TERMS BUT PEOPLE FAMILIAR WITH THE TRANSACTION SAID THE TOTAL SALE PRICE WAS SLIGHTLY ABOVE ISLAND'S BOOK VALUE OF 165 MILLION CANADIAN DOLLARS US1289 MILLION ISLAND PAPER A BRITISH COLUMBIA MAKER OF COATED AND UNCOATED FREESHEET PAPERS HAS ANNUAL CAPACITY OF 140500 METRIC TONS ITS REVENUE THIS YEAR IS PROJECTED AT C135 MILLION TED BOSWELL PRESIDENT OF EB EDDY SAID ISLAND WILL BE PROFITABLE THIS YEAR AFTER LOSING MONEY WHILE INTRODUCING NEW EQUIPMENT IN RECENT YEARS ISLAND'S TECHNOLOGY WILL BOLSTER EB EDDY'S SPECIALTY PAPER OPERATIONS MR BOSWELL SAID NORANDA FOREST IS BASED IN TORONTO MACMILLAN BLOEDEL IS A VANCOUVER BC FORESTPRODUCTS COMPANY 9307120047 930712 BUSINESS BRIEF DELPHI FINANCIAL GROUP INSURER FILES FOR OFFERINGS TO REDUCE INTEREST EXPENSES INSURANCE HOLDING COMPANY DELPHI FINANCIAL GROUP INC SAID IT PLANS TO REDUCE INTEREST EXPENSE WITH A RECAPITALIZATION PLAN THE WILMINGTON DEL COMPANY SAID IT FILED REGISTRATION STATEMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION FOR PROPOSED OFFERINGS OF 85 MILLION IN SENIOR NOTES AND 25 MILLION CLASS A COMMON SHARES OF WHICH ONE MILLION WILL BE SOLD BY SHAREHOLDERS DELPHI SAID IT PLANS TO REDEEM ITS 1175 SUBORDINATED DEBENTURES OUTSTANDING AND HAS ARRANGED A 35 MILLION INCREASE IN BANK CREDIT IT SAID THE PLAN WOULD REDUCE ANNUAL INTEREST EXPENSE TO 12 MILLION FROM 20 MILLION MERRILL LYNCH & CO WILL MANAGE THE SENIOR NOTES OFFERING AND LEAD THE COMMON STOCK OFFERING IN NATIONAL OVERTHECOUNTER TRADING DELPHI SHARES CLOSED AT 1975 DOWN 50 CENTS A SHARE 9307120046 930712 BUSINESS BRIEF GARNET RESOURCES CORP TWO OIL FIELDS IN COLOMBIA ARE DECLARED COMMERCIAL GARNET RESOURCES CORP SAID ITS MARY AND MIRAFLOR FIELDS IN COLOMBIA WERE DECLARED COMMERCIAL BY ECOPETROL THE COLOMBIAN NATIONAL OIL COMPANY BECAUSE THE FIELDS ARE ECONOMICALLY VIABLE ECOPETROL WILL PAY 50 OF ALL FURTHER DEVELOPMENT COSTS REQUIRED TO PLACE THE FIELDS IN PRODUCTION BY MID1994 THE FIELDS WILL BE CONNECTED TO A NEW PIPELINE SYSTEM THAT WILL TRANSPORT THE OIL TO THE TRANSANDEAN PIPELINE ABOUT 45 MILES SOUTH OF THE MIRAFLOR FIELD THE PIPELINE HAS SUBSTANTIAL EXCESS CAPACITY ENABLING PROMPT SALES OF THE COMPANY'S PRODUCTION GARNET SAID GARNET HOUSTON IS PRODUCING ABOUT 6000 BARRELS OF OIL A DAY WITH THE PRODUCTION FROM THE MIRAFLOR AND MARY FIELDS IN MID1994 OIL PRODUCTION IS EXPECTED TO BE ABOUT 18000 TO 20000 BARRELS A DAY THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY ALSO SAID IT IS TESTING SEVERAL POTENTIAL OIL BEARING SANDS OF THE MIRAFLOR NORTH NO 1 EXPLORATORY WELL WITH RESULTS EXPECTED WITHIN 10 DAYS 9307120045 930712 MARKETING ENTICED BY VISIONS OF ENORMOUS NUMBERS MORE WESTERN MARKETERS MOVE INTO CHINA BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING GIVE CHINA A CHANCE EXHORTS ONE OF HUNDREDS OF FRACTUREDENGLISH BILLBOARDS SUPPLANTING THE COMMUNIST PROPAGANDA OF YORE SHALL RETURN THE WORLD A MIRACLE PROCTER & GAMBLE CO HAS ALREADY TAKEN CHINA UP ON ITS INVITATION IN A BIG WAY DEPARTMENT STORES IN BEIJING SHANGHAI AND CANTON ALSO CALLED GUANGZHOU FEATURE FANCY FRONTENTRANCE COUNTERS FLAUNTING P&G'S HEAD & SHOULDERS PANTENE AND REJOICE KNOWN AS PERT PLUS IN THE US SHAMPOOS AS WELL AS AN ARRAY OF OTHER P&G PRODUCTS PLAYING CATCHUP TO P&G WHICH STARTED A JOINT VENTURE IN SOUTHERN CHINA FIVE YEARS AGO WITH STATEOWNED GUANGZHOU SOAP FACTORY BIG CONSUMERPRODUCTS MAKERS AROUND THE WORLD ARE NOW RUSHING TO START OR IN SOME CASES EXPAND OPERATIONS IN THE HOMELAND OF NEARLY ONE OF EVERY FOUR OF THE WORLD'S CONSUMERS FOR EXAMPLE UNILEVER GROUP THE ANGLODUTCH BEHEMOTH JUST ANNOUNCED PLANS TO SINK 60 MILLION INTO FACTORIES TO CHURN OUT ICE CREAM AND OMO DETERGENT IN SHANGHAI WHERE IT ALREADY PRODUCES LUX BRAND SOAP AND SHAMPOO KAO CORP THE JAPANESE GIANT THAT INVENTED SUPERCONCENTRATED DETERGENTS SAYS IT EXPECTS TO BEGIN MANUFACTURING IN CHINA SOON JOHNSON & JOHNSON ALREADY MAKING BANDAIDS IN SHANGHAI PLANS ANOTHER FACTORY THERE TO PRODUCE BABY SHAMPOO AND COLGATEPALMOLIVE CO IS CONSTRUCTING A NEW TOOTHPASTE FACTORY IN SOUTHERN CHINA THE FOREIGN COMPANIES ARE LURED BY 12 BILLION WOULDBE BUYERS OF SHAMPOO TOOTHPASTE AND DETERGENT NOT TO MENTION THE GOODS KNOWN IN CHINA AS THE THREE BIGS THOSE LONGEDFOR OBJECTS ONCE A WATCH BICYCLE AND A SEWING MACHINE EVOLVED IN THE 1980S INTO THE COLOR TELEVISION SET WASHING MACHINE AND TAPE RECORDER ONLY TO GIVE WAY TODAY TO THE VCR AIR CONDITIONER AND STEREO THE MAKERS OF HOUSEHOLD PRODUCTS ARE COUNTING ON THEIR QUALITY AND WESTERN CACHET TO EDGE OUT LOCAL PRODUCTS SUCH AS E&E NOURISHING LOTION WITH CATERPILLAR FUNGUS WHICH CLAIMS TO CURE WINKLES AND THEY ARE KEENLY AWARE THAT THEY ARE INVOLVED WITH THE FASTESTGROWING ECONOMY ON THE GLOBE CHINA IS SHOWING EXPLOSIVE GROWTH SAYS CRAIG TATE COLGATE'S ASIAN DIVISION CHIEF YOU ONLY HAVE TO SPEND TIME IN THE STORES TO GET AN IDEA OF THE SIZE OF THE OPPORTUNITY INDEED WITH SATURATED MARKETS AND FEROCIOUS COMPETITION ELSEWHERE CHINA REPRESENTS PROBABLY THE LAST MAJOR MARKETING FRONTIER ON THE PLANET THERE WILL NEVER BE A STARTUP AS BIG AS CHINA SAYS PETER HEMPSTEAD P&G'S CHINA CHIEF P&G HAS SALES IN CHINA OF ABOUT 130 MILLION A YEAR AT THE OFFICIAL EXCHANGE RATE UP ABOUT 50 FROM THE PREVIOUS YEAR ACCORDING TO ZHANG YONG DE AN OFFICIAL WITH THE GUANGZHOU FREE TRADE ZONE WHICH HAS A 5 INTEREST IN P&G'S JOINT VENTURE P&G CONFIRMS THE SALES FIGURE IS IN THE BALLPARK ACCORDING TO MR HAMPSTEAD THE COMPANY HAS BEGUN EKING OUT A SMALL PROFIT ON ITS HAIRCARE LINE BUT NOT YET ON ITS OTHER LINES WITH ALL THE POTENTIAL THERE ARE STEEP HURDLES TO MAKING A BUCK HERE AND MANY NEW ENTRANTS AREN'T COUNTING ON MAKING MONEY FOR YEARS AMONG THE OBSTACLES AN OVERHEATING ECONOMY CHOKED BY SOARING INFLATION DIFFICULTY CONVERTING CHINESE YUAN INTO FOREIGN CURRENCY FOR IMPORTING SUPPLIES AND REPATRIATING PROFITS AN ABYSMAL INFRASTRUCTURE THAT CAN TURN A RAIL SHIPMENT TRAVELING FROM CANTON TO BEIJING INTO A MONTHLONG ODYSSEY AND THE LOGISTICAL NIGHTMARE OF SUPPLYING THOUSANDS OF TINY MOMANDPOP STORES THAT CAN AFFORD TO STOCK ONLY A FEW BOTTLES AT A TIME EVEN MORE TROUBLING THE POSSIBILITY THAT FLEDGLING ECONOMIC FREEDOMS IN CHINA COULD BE DERAILED MOREOVER WESTERN PRODUCTS ARE STILL A LUXURY FOR MOST CHINESE PARTICULARLY IN THE RURAL AREAS WHERE PEASANTS BARELY SUBSIST THE 14 CENTS NEEDED TO BUY P&G'S POPULAR SINGLEUSE SHAMPOO POUCHES CAN BE A HUGE EXTRAVAGANCE EVEN FOR MANY RESIDENTS OF THE MOST PROSPEROUS EAST COAST CITIES AMONG MARKETERS' MOST FORMIDABLE CHALLENGES IS ACCURATELY FORECASTING THE SIZE OF CHINA'S POTENTIAL AND GEARING PRODUCTION TO MEET IT GIVEN NONEXISTENT MARKET RESEARCH AND THE DRAMATIC RECENT GROWTH IN INCOMES JUST HOW MUCH SOAP CAN BE SOLD IN CHINA NO ONE HAS ANY IDEA P&G MAY HAVE BEEN OVEROPTIMISTIC IT BOUGHT FEWER CONTAINERS THAN PROMISED FROM ONE OF ITS PACKAGING SUPPLIERS MC BOTTLING CO MR HEMPSTEAD ACKNOWLEDGES THAT P&G MAY HAVE BEEN WAY OFF ON SOME SIZES BUT HAS MET PROJECTIONS OVERALL IN MOST AREAS WHILE SOME ESTIMATE CHINA HAS 100 MILLION CUSTOMERS AFFLUENT ENOUGH TO BUY WESTERN GOODS MR HEMPSTEAD SEES DOUBLE OR TRIPLE THAT IN DOZENS OF CITIES BEYOND BEIJING AND SHANGHAI MOREOVER THE CHINESE URBAN CONSUMER TENDS TO HAVE A PROPORTIONALLY LARGE DISPOSABLE INCOME SINCE RENTS TEND TO BE VERY LOW THE CHINESE CONSUMER IS INCREASINGLY DEMANDING AFFLUENT AND RESEMBLING HER SISTERS IN HONG KONG AND TAIWAN SAYS MR HEMPSTEAD CONSIDER STYLISHLY DRESSED HOTEL CLERK WANG LANG SHOPPING RECENTLY IN THE GUANGZHOU DEPARTMENT STORE IN CANTON THOUGH SHE MAKES JUST 50 A MONTH IN HER JOB SHE CONSIDERS THE 6 BOTTLE OF REJOICE A BARGAIN SINCE IT COMBINES BOTH SHAMPOO AND CONDITIONER AND CAN LAST A MONTH IF I WERE TO GO TO THE BEAUTY SHOP IT WOULD COST 175 EVERY TIME SHE SAYS BUT P&G'S EVERESCALATING PRICES DETER OTHERS IN THE FACE OF FOUR PRICE INCREASES ON PANTENE IN THE PAST YEAR ZHANG YONG DE THE GUANGZHOU FREE TRADE ZONE OFFICIAL AND HIS WIFE WHO TOGETHER EARN 350 A MONTH SWITCHED TO A CHINESE ALTERNATIVE BESIDES HE SAYS P&G'S PRODUCTS ARE MADE FOR WESTERNERS AND MAY BE TOO GREASY FOR FINE CHINESE HAIR CHINESE EAT RICE HE SAYS WESTERNERS EAT WHEAT THE SHAMPOO'S INGREDIENTS JUST DO NOT FIT THE CHINESE PEOPLE P&G'S MR HEMPSTEAD AGREES IT'S PROBABLY TRUE THAT THERE ARE DIFFERENCES IN THAT CHINESE HAIR IS FINER THAN OTHERS BUT HE SAYS THE DIFFERENCES AREN'T SUBSTANTIAL MR ZHANG'S WIFE AND COLLEGEAGE DAUGHTER HOWEVER SWEAR BY P&G'S WHISPER SANITARY NAPKINS P&G DEFINED A CHRONIC NEED FOR THEM AFTER SEEING NORMALLY WELLDRESSED EMPLOYEES WEARING OLD DARK CLOTHES AND SHUNNING THEIR BICYCLES TWO OR THREE DAYS A MONTH BECAUSE OF LEAKAGE IN LOCAL PRODUCTS SOME CHINESE WOMEN NOW SHELL OUT UP TO 10 TIMES MORE THAN LOCAL ALTERNATIVES FOR WHISPER P&G MAKES ITS PRODUCTS AT ITS SPRAWLING PLANT LOCATED IN AN INDUSTRIAL PARK WITH ABOUT 160 OTHERS COMPANIES IN CANTON OUTSIDE THE PARK STANDING IN STRIKING CONTRAST TO OLD ECONOMIC IDEALS A BILLBOARD OF CHINA'S MOST POWERFUL LEADER DENG XIAOPING HAILS THE PARK AS CHINA'S FUTURE HOPE TO REDUCE ITS NEED FOR FOREIGN EXCHANGE WHICH COSTS ABOUT 15 TIMES THE OFFICIAL EXCHANGE RATE P&G TRIES TO BUY SUPPLIES LOCALLY ALTHOUGH IT STILL NEEDS TO IMPORT ABOUT HALF ITS REQUIREMENTS P&G BEGAN MAKING SURFACTANTS IN CANTON FOR ITS SHAMPOOS LAST YEAR TO AVOID HIGH IMPORT TARIFFS FOR EXAMPLE AND IT CONTINUES TO BLAZE AHEAD BUYING AN ADJACENT PLOT FOR AN UNDISCLOSED EXPANSION OF ITS FOUR FACTORY BUILDINGS IN CANTON IT WILL LIKELY ADD MANUFACTURING IN NORTHERN CHINA AS WELL SINCE ITS CANTON PLANT HAS NO RAIL ACCESS A MUST FOR SHIPPING DETERGENT A LIKELY CANDIDATE FOR ANOTHER JOINT VENTURE IS THE SOAP FACTORY IN TIANJIN NEAR SHANGHAI WHICH P&G RECENTLY CONTRACTED TO PRODUCE SAFEGUARD SOAP SAYS MR HEMPSTEAD IT'S OBVIOUS TO ANYONE WHO SEES THE SIZE OF THE POTENTIAL WITH THE LOGISTICS OF CHINA THAT WE WILL HAVE A NEED FOR MULTIPLE SITES 9307120044 930709 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 9307120043 930712 MARKETING & MEDIA NOTED WHO'S NEWS KENNETH D SCHANZER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MAJOR LEAGUE BASEBALL'S NEWLY FORMED TELEVISION VENTURE WITH ABC AND NBC WHICH WILL ADMINISTER NETWORK TV COVERAGE OF THE LEAGUE MR SCHANZER 48 WAS EXECUTIVE VICE PRESIDENT OF NBC SPORTS AND NBC TALENT NEGOTIATIONS ABC IS A UNIT OF CAPITAL CITIES/ABC INC NBC IS A UNIT OF GENERAL ELECTRIC CO DAVID SPIEGELMAN 34 WAS NAMED SENIOR VICE PRESIDENT A NEW POST AT THE NEW LINE TELEVISION DIVISION OF NEW LINE CINEMA CORP MR SPIEGELMAN WHO PREVIOUSLY WAS VICE PRESIDENT IS RESPONSIBLE FOR NEW LINE'S SALES AND MARKETING TO NETWORK PAY PAYPERVIEW AND BASIC CABLETV OUTLETS HE ALSO OVERSEES NEW LINE'S US SYNDICATION BUSINESS NEWS CORP'S FOX INC UNIT SAID GEORGE J KRIEGER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CBS/FOX VIDEO WILL STEP DOWN FROM THE JOINT VENTURE WITH CBS INC TO HELP FOX EXPLORE AND DEVELOP NEW BUSINESS OPPORTUNITIES IN AREAS OF EXPANSION HE WILL FOCUS ON PROGRAMMING PARTICULARLY IN THE SPORTS AND SPECIAL EVENTS AREAS 9307120042 930712 WHAT'S NEWS BUSINESS AND FINANCE THE US AND JAPAN AGREED ON A NEW FRAMEWORK FOR BILATERAL TRADE TALKS THE US DIDN'T WIN A PLEDGE FROM JAPAN TO SET NUMERICAL GOALS FOR REDUCING ITS OVERALL TRADE SURPLUS OR BOOSTING TOTAL IMPORTS BUT DID OBTAIN A COMMITMENT TO USE OBJECTIVE CRITERIA TO EVALUATE PROGRESS IN OPENING SPECIFIC JAPANESE MARKETS NORTHWEST AIR 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 FREE OF BANKRUPTCYLAW PROTECTION MERCK'S PRESIDENT RICHARD MARKHAM QUIT ADDING UNCERTAINTY TO A COMPANY ALREADY STRUGGLING TO ADJUST TO MAJOR CHANGES IN THE DRUG INDUSTRY MARKHAM WAS WIDELY SEEN AS MERCK'S NEXT CHAIRMAN A SUCCESSOR ISN'T EXPECTED TO BE NAMED IMMEDIATELY GM PLANS TO EMBRACE VALUE PRICING IN THE 1994 MODEL YEAR IN THE HOPE THAT OFFERING BETTEREQUIPPED CARS AT LOWER PRICES WILL RAISE GM'S MARKET SHARE AND CUT MANUFACTURING COSTS GM ALSO IS EXPECTED TO PUT MORE EMPHASIS ON ENTICING CONSUMERS INTO SHORTTERM LOWPAYMENT LEASES GERMAN PROSECUTORS FOUND SECRET PLANS FOR A NEW LOWCOST GM OPEL MODEL AMONG DOCUMENTS IN AN APARTMENT OCCUPIED BY TWO ALLIES OF EXGM PURCHASE CHIEF J IGNACIO LOPEZ DE ARRIORTUA PEOPLE CLOSE TO THE PROBE SAY US NEGOTIATORS APPEAR TO HAVE REACHED A COMPROMISE WITH MEXICO AND CANADA OVER ENVIRONMENTAL PROVISIONS OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE US BACKED DOWN FROM AN EARLIER PROPOSAL FOR TOUGH SANCTIONS ENFORCED BY A TRILATERAL ENVIRONMENT COMMISSION THE FED CONFIRMED THAT ITS POLICY MAKERS VOTED TO LEAN TOWARD HIGHER SHORTTERM INTEREST RATES AT THEIR MAY MEETING TWO OFFICIALS DISSENTED FOR TOTALLY OPPOSITE REASONS UNDERSCORING THE RECENT DIFFICULTY IN DISCERNING HOW SERIOUS A THREAT INFLATION IS MUNICIPAL BOND RULE MAKERS MAY PROPOSE A RULE TO PROHIBIT SECURITIES FIRMS FROM MAKING POLITICAL CONTRIBUTIONS TO OFFICIALS OF STATES AND LOCALITIES WHOSE BONDS THE FIRMS UNDERWRITE CHINA RAISED INTEREST RATES AND UNVEILED A PLAN TO TIGHTEN CENTRAL CONTROL OVER THE COUNTRY'S BANKS AS CHINA'S ECONOMIC CZAR AIMS AT DAMPING SPECULATION AND COOLING CHINA'S ECONOMY HARSCO AGREED TO ACQUIRE MULTISERV THE WORLD'S BIGGEST PROVIDER OF STEELMILL SERVICES FOR 380 MILLION HARSCO'S MOVE FURTHER EMPHASIZES INDUSTRIAL PRODUCTS AND SERVICES AS ITS MAIN LINES OF BUSINESS IN THE FACE OF DWINDLING DEFENSE SPENDING ALCOA POSTED A PROFIT FOR THE LATEST QUARTER REVERSING A LOSS A YEAR EARLIER BUT EARNINGS BEFORE SPECIAL ITEMS FELL 21 AMID FEWER SHIPMENTS OLYMPIA & YORK'S US SUBSIDIARY GOT US BANKRUPTCY COURT APPROVAL IN PRINCIPLE FOR A NEW BOARD BUT THE BOARD CAN'T BE SEATED UNTIL A DISPUTE IS RESOLVED WITH TORONTO'S REICHMANN FAMILY THE FORMER CONTROLLING HOLDERS OF O&Y'S CANADIAN PARENT COMPANY BONDS LEHMAN BROTHERS TREASURY INDEX 531071 UP 1166 COMMODITIES OIL 1789 A BARREL UP 10 CENTS DOW JONES FUTURES INDEX 12660 OFF 068 SPOT INDEX 12387 OFF 132 DOLLAR 10995 YEN UP 140 17225 MARKS UP 00202 9307120041 930712 TECHNOLOGY BRIEF ABBOTT LABORATORIES NET IN 2ND PERIOD ROSE 91 AIDED BY REVERSAL OF CHARGE ABBOTT LABORATORIES HELPED IN PART BY THE REVERSAL OF A PORTION OF AN EARLIER SPECIAL CHARGE REPORTED A 91 INCREASE IN SECONDQUARTER NET INCOME ON AN 87 INCREASE IN SALES THE MAKER OF HEALTH CARE PRODUCTS REPORTED NET OF 3461 MILLION OR 42 CENTS A SHARE UP FROM THE YEAREARLIER PERIOD'S 3171 MILLION OR 37 CENTS A SHARE PERSHARE EARNINGS REFLECT A DECLINE IN THE NUMBER OF ABBOTT SHARES OUTSTANDING TO 831 MILLION FROM 8477 MILLION THE ABBOTT PARK ILL COMPANY'S LATEST RESULTS INCLUDE A PRETAX 70 MILLION GAIN FROM THE REVERSAL OF A PORTION OF A 215 MILLION PRETAX CHARGE IN THE YEAREARLIER PERIOD LINKED TO ABBOTT'S WITHDRAWAL OF A DRUG THE WITHDRAWAL PROVED LESS COSTLY THAN EXPECTED ALLOWING FOR THE GAIN THE YEAREARLIER CHARGE HAD BEEN MORE THAN OFFSET HOWEVER BY A 272 MILLION PRETAX GAIN FROM THE SALE OF AN INVESTMENT ABBOTT'S SALES ROSE TO 207 BILLION FROM THE YEAREARLIER 191 BILLION SALES OF PHARMACEUTICAL AND NUTRITIONAL PRODUCTS SHOWED A 10 INCREASE IN WORLDWIDE SALES THE COMPANY SAID ABBOTT SAID ITS HOSPITAL PRODUCTS BUSINESS HAD A 73 SALES INCREASE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE ABBOTT SHARES CLOSED AT 2525 DOWN 25 CENTS 9307120040 930712 BUSINESS BRIEF HILLS DEPARTMENT STORES INC MAJOR OBSTACLE IS REMOVED TO FIRM'S REORGANIZATION HILLS DEPARTMENT STORES INC SAID IT REACHED AN AGREEMENT WITH A CREDITOR RESOLVING A MAJOR OBSTACLE TO APPROVAL FOR ITS REORGANIZATION PLAN HILLS FILED THE PLAN LAST MONTH IN US BANKRUPTCY COURT IN NEW YORK PLEDGING TO PAY 538 MILLION IN CASH AND SECURITIES TO CREDITORS WHO ARE OWED 752 MILLION UNDER THE PLAN THE CANTON MASS DISCOUNT RETAILER WOULD BE DISSOLVED AND A REORGANIZED HILLS STORES CO WOULD EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN MIDSEPTEMBER UNDER THE AGREEMENT REACHED WITH O'CONNOR & ASSOCIATES A PRINCIPAL HOLDER OF HILLS 14 5/8 SUBORDINATED DEBENTURES THE DEBENTURE HOLDERS WOULD RECEIVE ABOUT 396 MILLION IN SECURITIES OR 78 OF THEIR CLAIM HILLS HAD ORIGINALLY PROPOSED ABOUT 34 MILLION IN SECURITIES OR 67 OF THEIR CLAIM HILLS SAID THAT WITH O'CONNOR'S APPROVAL ALL OF ITS MAJOR CREDITORS HAVE EXPRESSED SUPPORT FOR THE PLAN HILLS FILED FOR BANKRUPTCYLAW PROTECTION IN FEBRUARY 1991 BECAUSE IT COULDN'T SUPPORT THE DEBT BURDEN IT INCURRED IN A LEVERAGED BUYOUT IN 1985 THE RETAILER WHICH WENT PUBLIC IN 1987 CURRENTLY OPERATES 151 STORES 9307120039 930712 BUSINESS BRIEF CIRCLE K CORP BONDHOLDERS' BID TO BLOCK REORGANIZATION PLAN DENIED A FEDERAL JUDGE DENIED A REQUEST BY A GROUP OF CIRCLE K CORP BONDHOLDERS TO BLOCK CONFIRMATION OF THE PHOENIX COMPANY'S REORGANIZATION PLAN BUT GRANTED A STAY UNTIL JULY 19 SO THE GROUP CAN APPEAL US DISTRICT JUDGE PAUL G ROSENBLATT RULED THAT THE BONDHOLDERS' REQUEST WAS INAPPROPRIATE REPRESENTATIVES OF THE GROUP COULDN'T BE REACHED A SPOKESWOMAN FOR THE CONVENIENCESTORE CHAIN SAID WE WEREN'T SURPRISED BY THE RULING SHE ADDED THAT THE COMPANY EXPECTS ITS REORGANIZATION PLAN WILL BE IMPLEMENTED THE PLAN APPROVED BY A FEDERAL BANKRUPTCY COURT LAST MONTH PAYS BONDHOLDERS NOTHING FOR THEIR 525 MILLION IN CLAIMS INSTEAD IT CALLS FOR CIRCLE K TO BE SOLD TO CK ACQUISITIONS CORP A UNIT OF BAHRAINBASED HOLDING COMPANY INVESTCORP INTERNATIONAL INC WITH THE PROCEEDS GOING TO CIRCLE K'S BANKS AND LENDERS SENIOR NOTEHOLDERS AND UNSECURED CREDITORS THOSE GROUPS' COMBINED CLAIMS ARE BETWEEN 705 MILLION AND 755 MILLION COMMON STOCKHOLDERS RECEIVE NOTHING 9307120038 930712 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 310 30 TO 59 DAYS 312 60 TO 89 DAYS 315 90 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 268 TWO MONTHS 270 THREE MONTHS 288 SIX MONTHS 308 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 3125 ONE MONTH 318 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 305 60 DAYS 307 90 DAYS 311 120 DAYS 315 150 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 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 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 TUESDAY JULY 6 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 301 13 WEEKS 310 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 701 60 DAYS 706 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 695 60 DAYS 705 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 9307120037 930712 THE OUTLOOK US JAPAN FOCUSING ON ELECTRONIC GEAR BY DAVID P HAMILTON TOKYO AMERICANS INNOVATE JAPANESE MANUFACTURE FOR DECADES THAT REALITY HAS UNDERCUT US COMPANIES AS JAPANESE FIRMS TOOK OVER ONE FIELD AFTER ANOTHER FROM TVS TO MEMORY CHIPS NOW A NEW GENERATION OF US TECHNOLOGY IS ABOUT TO HIT THE MARKET AND JAPAN'S FIRMS ARE AGAIN GEARING UP TO MAKE THE DEVICES IS HISTORY ABOUT TO REPEAT ITSELF AMERICA'S HIGHTECH COMPANIES SAY NO THIS TIME THEY ARE CALLING THE SHOTS BUT THE REALITY ISN'T QUITE SO SIMPLE AND MAY NOT BE A BOON FOR US TRADE WITH JAPAN SALES OF THE NEW CONSUMER ELECTRONICS MAY BOOST THE PROFITS OF US COMPANIES YET JOB GROWTH IN THE US MAY SUFFER WHAT IS MORE THIS MUCH HERALDED COMEBACK OF US ELECTRONICS FIRMS COULD EVEN FATTEN JAPAN'S HUGE TRADE SURPLUS A CHIEF TOPIC AT LAST WEEK'S SUMMIT OF WORLD LEADERS IN TOKYO TRADE IN ELECTRONICS MAKES UP THE SECONDLARGEST CHUNK OF JAPANESE EXPORTS JUST BEHIND AUTOS AND AUTO PARTS IN 1992 JAPAN'S ELECTRONICS EXPORTS TO THE US ROSE TO A RECORD 304 BILLION ACCORDING TO THE AMERICAN ELECTRONICS ASSOCIATION THE SECTOR ACCOUNTED FOR NEARLY 32 OF JAPAN'S TOTAL EXPORTS TO THE US AS WELL AS 223 BILLION OF THE 436 BILLION BILATERAL TRADE IMBALANCE WHAT IS WORSE JAPAN'S TRADE SURPLUS IN ELECTRONICS IS A STRUCTURAL SURPLUS MADE UP LARGELY OF GADGETS AND PARTS US COMPANIES DON'T TEND TO MAKE UNTIL WE DO SOMETHING ABOUT MAKING CAMCORDERS FLATPANEL DISPLAYS AND OTHER THINGS THAT WE IMPORT BECAUSE THERE'S NO REAL DOMESTIC SOURCE WE'RE NEVER GOING TO GET RID OF OUR TRADE DEFICIT WITH JAPAN SAYS JOHN STERN HEAD OF AEA'S TOKYO OFFICE THE JAPANESE AGREE THE JAPANESE TRADE SURPLUS IS INCREASING BECAUSE BOTH COUNTRIES' INDUSTRIAL STRUCTURES ARE STRONGLY INTEGRATED SAYS AN ECONOMIST AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY NOW ENTER THE MUCHANTICIPATED DIGITAL REVOLUTION IN CONSUMER ELECTRONICS WHICH IS SUPPOSED TO MARRY COMPUTING AND COMMUNICATIONS TECHNOLOGYUS STRENGTHSWITH CONSUMER PRODUCTS A JAPANESE STRENGTH TWO MAJOR CATEGORIES ARE TAKING SHAPE PERSONAL COMMUNICATORS HANDHELD DEVICES THAT OFFER BOTH CELLULARTELEPHONE AND COMPUTER FUNCTIONS AND MULTIMEDIA PLAYERS WHICH OFFER SOUND GRAPHICS AND VIDEO FOR GAMES AND EDUCATION THE POTENTIAL MARKET COULD BE HUGE DATAQUEST INC ESTIMATES SALES JUST OF PERSONAL COMMUNICATORS IN THE US ALONE WILL HIT 36 MILLION UNITS IN 1997 EARLY VERSIONS OF THE PRODUCT ARE PRICED AROUND 1000 AND MORE WHILE US FIRMS LEAD IN DEVELOPMENT IN BOTH AREAS THEY NEED BROAD MARKETS WE AREN'T BIG ENOUGH TO DO IT BY OURSELVES SAYS RICHARD BODMAN DIRECTOR OF CORPORATE STRATEGY FOR AMERICAN TELEPHONE & TELEGRAPH CO WHICH SELLS A PERSONAL COMMUNICATOR CALLED THE EO TO BUILD A CUSTOMER BASE THE MOST EXPEDITIOUS WAY IS TO WORK WITH FOREIGN COMPANIES THAT MEANS SIGNING UP JAPANESE FIRMS TO MAKE THE PRODUCTS US COMPANIES DESIGN AT&T PROVIDES KEY HARDWARE AND SOFTWARE FOR THE EOBUT MATSUSHITA ELECTRIC INDUSTRIAL CO MAKES THE FINAL DEVICE SIMILARLY APPLE COMPUTER INC WON'T MAKE THE FIRST VERSION OF THE NEWTON ITS OWN PERSONAL COMMUNICATOROSAKABASED SHARP CORP WILL IN BOTH CASES THE JAPANESE COMPANIES HAVE THE RIGHT TO DEVELOP AND SELL THEIR OWN VERSIONS OF THE HARDWARE LIKEWISE MATSUSHITA PLANS TO SELL A MULTIMEDIA HOME VIDEOGAME MACHINE BASED ON A DESIGN BY 3DO CO A CALIFORNIA STARTUP PARTOWNED BY MATSUSHITA TOSHIBA CORP TOO HOPES TO ENTER THE MULTIMEDIA MARKET WITH A PRODUCT DESIGNED TO RUN APPLE SOFTWARE BY CREATING NEW EXPORT MARKETS FOR JAPANESE FIRMS THESE ARRANGEMENTS MAY ONLY WORSEN THE TRADE IMBALANCE IF AMERICAN COMPANIES CAN'T PRODUCE THESE THINGS WE'LL HAVE A BUILTIN STRUCTURAL DEFICIT SAYS JOHN ZYSMAN A CODIRECTOR OF THE BERKELEY ROUNDTABLE ON THE INTERNATIONAL ECONOMY ROYALTIES AND LICENSING FEES PAID THE US FIRMS WILL COUNT AGAINST THOSE EXPORTS BUT IT IS HARD TO CALCULATE IN ADVANCE WHETHER THAT WILL LEAVE THE US AHEAD OR BEHIND US COMPANIES ARGUE THAT BY PRODUCING CRUCIAL PARTS FOR THESE DEVICES MOSTLY SOFTWARE AND SPECIALIZED CHIPS THEY WILL REAP HIGHER PROFITS THAT WILL LEAD TO FURTHER INNOVATION IF WE'RE DEVELOPING NEW PRODUCTS AND IF WE WORK WITH COMPANIES WHO CAN DEVELOP MARKETS THE REVENUES WILL COME BACK TO OUR COMPANY WHERE THEY'LL BE INVESTED IN NEW PRODUCTS THAT CREATE MORE JOBS SAYS AT&T'S MR BODMAN SOME CRITICS AREN'T REASSURED IDEALLY US COMPANIES SHOULD CONCEIVE THINGS DO THE DESIGN MANUFACTURE THE PRODUCTS AND PROVIDE JOBS CONTENDS CLYDE PRESTOWITZ A FORMER US TRADE NEGOTIATOR WE MAY BE GETTING OURSELVES INTO A SITUATION WHERE A SMALL GROUP OF ELITE US WORKERS ARE DOING WELL OUT OF THIS ARRANGEMENT WHILE MOST OF THE JOBS ARE GOING SOMEWHERE ELSE YOU CAN END UP WITH COMPANIES THAT DO WELL AND A COUNTRY THAT DOESN'T ADDS MR ZYSMAN US COMPANIES ALSO COULD LOSE CONTROL OF THE TECHNOLOGY CERTAINLY PREVIOUS EXPERIENCE ISN'T ENCOURAGING IN THAT REGARD SAYS RICHARD LESTER DIRECTOR OF MIT'S INDUSTRIAL PERFORMANCE CENTER IN AN EARLIER ERA AMERICAN COMPANIES MADE SIMILAR DECISIONS AND ALLOWED THE JAPANESE INTO THE ZONE OF KNOWHOW BY DOING JUST THIS WHILE FIRMS LIKE AT&T AND APPLE SAY THEY WILL USE THE LAW TO PROTECT INTELLECTUAL PROPERTY IT'S VERY HARD TO CONTROL WHAT YOU DON'T PRODUCE IN THE WAY OF FINAL PRODUCT SAYS MICHAEL BORRUS ANOTHER CODIRECTOR OF THE BERKELEY ROUNDTABLE THE STRONGEST US COMPANIES ARE THOSE THAT HAVEN'T JUST RETAINED THEIR SOFTWARE BUT ALSO HAVE A SIGNIFICANT PRESENCE IN MANUFACTURING 9307120036 930712 SHAKE RATTLE ROLL VINTAGE CUSHMANS RETURN TO THE ROAD COLLECTORS LOVE THE SCOOTERS FLAWS AND ALL BUT BABY THESE WEREN'T BORN TO RUN BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL MARSHALL TEXAS FORTY BIKERS THEIR ENGINES BACKFIRING WITH THE RESONANCE OF RIFLE SHOTS AND GEARS GRINDING LIKE JACKHAMMERS HIT THE OPEN ROAD AND IT'S NO EASY RIDE IT CAN'T BE THIS GANG IS ASTRIDE VINTAGE CUSHMAN INC MOTOR SCOOTERS A LINE OF BIKES THAT DIED NEARLY 30 YEARS AGO EVEN IN THEIR HEYDAY CUSHMAN SCOOTERS WERE A FAR CRY FROM THE CUSTOMIZED DREAM MACHINES DENNIS HOPPER AND PETER FONDA ROLLED DOWN THE HIGHWAY BACK IN 1969 THE CUSHMAN SCOOTER OFTEN ROLLED OFF THE PRODUCTION LINE IN LINCOLN NEB ABSURDLY HAYWIRE BRAKES LIGHTS AND SHOCK ABSORBERS WERE MORE CONCEPT THAN REALITY AND THERE ARE STORIES OF CUSHMAN OWNERS RIPPING ACHILLES TENDONS ON THE SCOOTERS' STUBBORN KICKSTART ENGINES THEY WERE BUILT TO BE REBUILT SAYS BILL SOMERVILLE A 52YEAROLD FOUNDRY MANAGER WHO LAUNCHED THE BURGEONING CUSHMAN CLUB OF AMERICA IN 1981 CUSHMANS ARE SHEER AMERICAN ENGINEERING SIMPLICITY SUCH SENTIMENTS ARE THE LEGACY OF THE COUSINS CUSHMANEVERETT AND CLINTON WHO BUILT THEIR FIRST FIVEHORSEPOWER ENGINE IN A LINCOLN NEB RESIDENTIAL BASEMENT IN 1901 THE SONS OF FARMERS BOTH HAD TO REPEAT BASIC ENGINEERING CLASSES AT THE UNIVERSITY OF NEBRASKA YOUNG EVERETT EVENTUALLY QUIT SCHOOL CLINTON STRUGGLED FOR SEVEN YEARS TO GRADUATE WITH A BACHELOR'S DEGREE IN ELECTRICAL ENGINEERING NEVERTHELESS THE CUSHMANS FOUNDED A SUCCESSFUL FACTORY THAT MADE ENGINES FOR FARM EQUIPMENT FISHING BOATS AND LAWN MOWERS THE FIRST CUSHMAN MOTOR SCOOTER THE 35MILEPERHOUR AUTOGLIDE WENT ON SALE FOR 132 IN 1936 THE ADS SAID GRANDLY PROMINENT ENGINEERS PROCLAIM THE AUTOGLIDE THE GREATEST ADVANCE EVER MADE IN LOWCOST MOTOR TRANSPORTATION ONE SALES SLOGAN IT IS UNDER PERFECT CONTROL EVERY SECOND NOT QUITE RETIRED CUSHMAN WORKERS STILL TALK ABOUT THE SAFETY INSPECTOR FORCED TO JUMP FROM A RUNAWAY SCOOTER AS A FRIGHTFUL CRASH ENSUED RIGHT THERE IN THE FACTORY THE ABSENCE OF QUALITY CONTROL WAS GLARING AT THE FACTORY THAT CRANKED OUT AS MANY AS 20000 SCOOTERS A YEAR COMPETITION WAS SCANT MAINLY FROM ITALY IN THE FORM OF PIAGGIO CO'S VESPA AND INNOCETTI CO'S LAMBRETTA AND ALLOWED CUSHMAN A CUSHY 85 SHARE OF THE US SCOOTER MARKET AS RECENTLY AS 1960 BUT BY 1965 HONDA MOTOR CO'S SPEEDY IMPORTS BEGAN TO DOMINATE THE US SCOOTER AND MOTORCYCLE MARKETS IT IS STILL THE NO 1 SELLER IN BOTH VAUGHN BORDER CUSHMAN'S LAST DIRECTOR OF SCOOTER MARKETING RECALLS THE SURRENDER TO JAPAN WE JUST DIDN'T HAVE ANY CHOICE BUT CUSHMAN LOVERS GET AROUND AND NOWADAYS THEY ARE PICKING UP THE PIECES OF JUNKED SCOOTERS AND PUTTING THEM TOGETHER BY THE THOUSANDS SCOOTERS THAT SOLD NEW FOR 300 OR LESS CAN BE HAD IN NONRUNNING CONDITION TODAY FOR UNDER 50 ONCE REFURBISHED THEY TYPICALLY FETCH 2500 AND PRICES FOR CUSHMANS IN CREAMPUFF CONDITION CAN SOAR AS HIGH AS 8000 CUSHMANS ARE INCREASINGLY THE STAR ATTRACTION AT COLLECTORS' SHOWS SCOOTER RESTORATION CONTESTS AND WEEKEND CRUISES MEMBERSHIP IN MR SOMERVILLE'S CUSHMAN CLUB HAS QUADRUPLED TO 3200 SINCE 1986 FOR MANY THE CUSHMAN MYSTIQUE IS PURE NOSTALGIA THE SCOOTERS' LOW HORSEPOWER AND TOYLIKE TIRES PERSUADED MANY PARENTS AND DRIVER'S LICENSING OFFICIALS TO LET KIDS RIDE THEM AT AGE 14 ONCE UPON A TIME WHEN I GOT MY FIRST CUSHMAN IN 1947 I STILL DIDN'T KNOW WHAT YOU COULD DO IN THE BACK SEAT OF A CAR SAYS JACK FREEMAN A 59YEAROLD PLAYGROUND EQUIPMENT SALESMAN IN IRVING TEXAS RIDING A CUSHMAN TODAY HELPS ME REMEMBER A TIME NOT JUST OF YOUTH BUT INNOCENCE YET MOST OF THOSE FUELING TODAY'S CUSHMAN RENAISSANCE HAVE SOMETHING ELSE IN COMMON THEY DUMPED THEIR PUTTPUTT PUPPY LOVE AND HEADED FOR THE FAST LANE I HATE TO ADMIT THAT I SOLD MY CUSHMAN WITHOUT A SECOND THOUGHT WHEN I GOT OLD ENOUGH FOR BIG HONDAS AND HOT RODS SAYS BILL ANDERSON A 43YEAROLD TELEPHONE REPAIRER BUT FOUR YEARS AGO MR ANDERSON SPOTTED A BEATUP 1961 CUSHMAN EAGLE OFFERED FOR 25 AT A GARAGE SALE HERE WAS A WAY BACK TO THE MOST FUN TIME IN MY LIFE HE SAYS NOW A DOZEN CUSHMANS IN VARIOUS STAGES OF REBUILDING OVERFLOW MR ANDERSON'S GARAGE HE STORES EXTRA PARTS WITH FRIENDS AND RELATIVES HE LAVISHES UP TO 30 COATS OF PAINT ON EACH VEHICLE AND DISPLAYS A CASE OF 21 TROPHIES FROM SCOOTER SHOWS REVIVED CUSHMANS ARE JUST AS CANTANKEROUS THE SECOND TIME AROUND GIL KASPAREK A TRUCK DISPATCHER IN PASADENA TEXAS BOUGHT A RESTORED SHINY BLUE 1950 CUSHMAN PACEMAKER THREE YEARS AGO FOR 1300 I HAD OLD BLUE' AT HOME FOR 30 MINUTES TURNED ON THE THROTTLE AND SHE TOOK OFF LIKE A ROCKET INTO THE SIDE OF MY GARAGE HE SAYS MR KASPAREK FORGOT THAT OLD BLUE LACKS A TRANSMISSION AS DO MANY CUSHMAN MODELS THUS TO OPEN THE THROTTLE IS TO GO SOMETIMES I'LL NEVER FORGET THAT SPECIAL FEELING OF THE WIND IN YOUR HAIR WHEN YOU'RE GOING GOOD ON A CUSHMAN AND THENPOOF YOU JUST LOST A BEARING AND YOU LOOK BACK HOPING TO SEE WHERE IT LANDED SAYS DARRELL WARD A GENERAL MOTORS CORP ASSEMBLY LINE WORKER IN BURTON MICH NOTORIOUS FOR SHEDDING PARTS WHILE IN MOTION CUSHMANS' JOLTING RIDE MAY BE TO BLAME THE COMPANY'S ENGINEERS DEBATED THE DESIGN OF REAR SHOCK ABSORBERS FOR FOUR DECADES BUT NEVER GOT AROUND TO INSTALLING THEM OTHER DESIGNS WEREN'T DEBATED UNFORTUNATELY THE FACTORY PRODUCED SOME CUSHMANS WITH FUEL LINES POSITIONED SO THAT ENGINE HEAT EVAPORATED THE GASOLINE WITHIN A MATTER OF MINUTES SAYS DONALD R YATES A LONGTIME CUSHMAN WORKER WE NEVER GOT ALL THE BOOBOOS OUT OF THEM BUT THE CUSHMAN'S FANS WON'T LET IT DIE AT A RECENT WEEKEND SCOOTER RALLY IN MARSHALL TEXAS 250 PEOPLE ARRIVE HAULING THEIR CUSHMAN COLLECTIONS IN ON FLATBED TRUCKS OR TOWING THEM BEHIND RECREATIONAL VEHICLES THEY CHALLENGE EACH OTHER IN PRECARIOUS RIDING GAMES SUCH AS OBSTACLE COURSES AND NEWSPAPER ACCURACY TOSSES THE BRAVEST OF THOSE ASSEMBLED MOUNT THEIR CUSHMANS AND FORM A CARAVAN BUT THEY NEVER TOUR WITHOUT SOMEONE CLOSE BEHIND DRIVING ANYTHING BUT A CUSHMAN AND CARRYING TOOLS SAYS PAUL COVERT WHO OWNS A CUSHMAN PARTS WAREHOUSE IN DOTHAN ALA THEY REALLY SHOULD HAVE CALLED THEM PUSHMANS YET CUSHMAN INC WHICH TODAY MAKES INDUSTRIAL CARTS AND LAWNCARE VEHICLES STILL RECEIVES LETTERS FROM PEOPLE BEGGING IT TO TOOL UP SCOOTER PRODUCTION AGAIN THEY ASK WHY WE EVER STOPPED MAKING THEM SAYS JERRY OGREN A SPOKESMAN FOR CUSHMAN NOW OWNED BY RANSOMES PLC BASED IN IPSWICH ENGLAND BUT THE WORLD HAS CHANGED TOO MUCH FOR A CUSHMAN SCOOTER REVIVAL OBSERVES MR OGREN TODAY THE PRODUCT LIABILITY LAWYERS WOULD PROBABLY JUST FOLLOW OUR CUSTOMERS AROUND 9307120035 930712 BUSINESS BRIEF KASLER CORP WCG HOLDINGS MERGER GETS APPROVAL FROM SHAREHOLDERS KASLER CORP SAID ITS SHAREHOLDERS APPROVED A PROPOSED MERGER WITH WCG HOLDINGS INC THE PARENT OF WASHINGTON CONTRACTORS GROUP INC OF MISSOULA MONT THE MERGER CREATES KASLER HOLDING CO WITH KASLER CORP AND WCG HOLDINGS INC BECOMING WHOLLY OWNED SUBSIDIARIES KASLER HOLDING WHICH WILL HAVE ABOUT 295 MILLION SHARES OUTSTANDING WILL BE LISTED ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL KAS THE SHARES WILL BEGIN TRADING JULY 12 EXECUTIVES AT KASLER A HIGHLAND CALIF HIGHWAY CONSTRUCTION COMPANY SAID THE MERGER OFFERED IT A STRONGER FINANCIAL BASE AND HELPS POSITION IT TO ATTRACT LARGER PROJECTS IN A BROADER GEOGRAPHIC REGION THE SHAREHOLDERS' APPROVAL CAME DESPITE VOTES AGAINST THE MERGER BY THREE OF THE COMPANY'S DIRECTORS THE DIRECTORS A MEMBER OF THE KASLER FAMILY AND TWO FAMILY FRIENDS SAID THE DEAL WOULDN'T GIVE KASLER SHAREHOLDERS A BIG ENOUGH STAKE IN THE COMBINED COMPANY PATRICK A ORTIZ ONE OF THE DISSIDENT DIRECTORS RESIGNED LAST MONTH IN OPPOSITION 9307120034 930712 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANTEC CORP A UNIT OF ITEL CORP AN OFFERING OF AT LEAST 74 MILLION SHARES OF COMMON STOCK VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP MERRILL LYNCH & CO AND WERTHEIM SCHRODER & CO BROADCASTING PARTNERS INC AN INITIAL OFFERING OF THREE MILLION CLASS A COMMON SHARES VIA ALEX BROWN & SONS INC AND FIRST BOSTON CORP PEOPLES TELEPHONE CO AN OFFERING OF 1503500 COMMON SHARES 9307120033 930712 FINANCING BUSINESS KIII COMMUNICATIONS CORP KIII COMMUNICATIONS CORP SAID IN NEW YORK THAT HOLDERS OF ITS 11625 SERIES A EXCHANGEABLE PREFERRED STOCK COMPLETED A SWAP FOR AN EQUAL NUMBER OF 11625 SERIES B EXCHANGEABLE PREFERRED STOCK THE PUBLISHING CONCERN SAID THE ISSUES ARE VIRTUALLY IDENTICAL EXCEPT THE SERIES B IS FULLY TRADEABLE BECAUSE IT IS A REGISTERED PUBLIC OFFERING THE SERIES A HOWEVER WAS RESTRICTED IN ITS MOVEMENT BECAUSE IT WAS A PRIVATE PLACEMENT 9307120032 930712 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED ONE INITIAL PUBLIC OFFERING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED EIGHT NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD SAID IT BEGAN TRADING SHARES IN STONE ENERGY CORP LAFAYETTE LA AN OIL AND GAS CONCERN UNDER SGY THE AMERICAN STOCK EXCHANGE BEGAN TRADING SHARES IN RELIV' INTERNATIONAL INC ST LOUIS A PRODUCER OF DIETARY SUPPLEMENTS UNDER RLV THE COMPANY PREVIOUSLY TRADED ON THE EXCHANGE'S EMERGING COMPANY MARKETPLACE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET CALIFORNIA CULINARY ACADEMY INC SAN FRANCISCO A CHEF TRAINING SCHOOL UNDER COOK CYRK INC GLOUCESTER MASS A SPORTS APPAREL PROMOTIONAL PROGRAM CONCERN UNDER CYRK MISSISSIPPI VALLEY BANCSHARES INC ST LOUIS A BANK HOLDING COMPANY UNDER MVBI PEOPLE'S CHOICE TV CORP BRIDGEPORT CONN A WIRELESS CABLE TELEVISION SYSTEM DEVELOPER AND OPERATOR UNDER PCTV TITAN HOLDINGS INC SAN ANTONIO AN INSURANCE HOLDING COMPANY UNDER TITN THE FOLLOWING ISSUES MOVED FROM THE NASDAQ SMALLCAP MARKET TO THE NATIONAL MARKET SYSTEM STANLEY FURNITURE CO STANLEYTOWN VA A DESIGNER AND MAKER OF WOOD FURNITURE UNDER STYLD PERCEPTRON INC FARMINGTON HILLS MICH A MAKER OF LASERBASED DATACAMERAS UNDER PRCP THE FOLLOWING COMPANY MOVED UP FROM THE PINK SHEETS TO THE NATIONAL MARKET SYSTEM HORIZON BANCORP INC BECKLEY W VA A BANK HOLDING COMPANY UNDER HZWV THE AMERICAN STOCK EXCHANGE ALSO WILL BEGIN TRADING IN LONGTERM EQUITY ANTICIPATION SECURITIES ON THE STANDARD & POOR'S MIDCAP 400 INDEX AND OPTIONS ON PLAYERS INTERNATIONAL INC TODAY THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT BEGAN TRADING OPTIONS ON AGNICOEAGLE MINES LTD AND HOLLYWOOD PARK INC THE CBOE WILL ALSO BEGIN TRADING OPTIONS ON PLAYERS INTERNATIONAL INC THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON STARTER CORP 9307120031 930712 WHO'S NEWS IEC ELECTRONICS CORP IEC ELECTRONICS CORP NEWARK NY RONALD BURCH 51 YEARS OLD FORMERLY GENERAL MANAGER OF TANDY ELECTRONICS CORP A UNIT OF TANDY CORP WAS NAMED GENERAL MANAGER OF CALIDAD ELECTRONICS A UNIT OF THIS MAKER OF PRINTED CIRCUIT BOARD ASSEMBLIES AND ELECTRONIC PRODUCTS AND SYSTEMS HE SUCCEEDS GEORGE LUNDQUIST 56 WHO RESIGNED IN JUNE TO PURSUE OTHER INTERESTS 9307120030 930712 WHO'S NEWS KLH ENGINEERING GROUP INC KLH ENGINEERING GROUP INC ENGLEWOOD COLO RICHARD L GORMAN 44 YEARS OLD KLH VICE PRESIDENT OF OPERATIONSPACIFIC REGION FRANK VAN COURT 50 AN AUSTIN TEXAS LAWYER NEIL S GRIGG 54 A PROFESSOR AND HEAD OF THE CIVIL ENGINEERING DEPARTMENT AT COLORADO STATE UNIVERSITY AND THOMAS E NORTON 52 A COLORADO SENATOR WERE NAMED TO THE BOARD OF THIS ENGINEERING CONSULTING FIRM THESE FOUR NEW MEMBERS INCREASE THE BOARD FROM SIX TO EIGHT AND SUCCEED TWO BOARD MEMBERS THE DEPARTING DIRECTORS ARE RAY KOESTER 67 COFOUNDER OF KLH ENGINEERING IN PUEBLO COLO AND JACK VERHINES 61 A PRINCIPAL OF KLH'S NEW MEXICO COMPANY 9307120029 930712 TECHNOLOGY BRIEF MEDRAD INC LIEBEL FLARSHEIM FACES SUIT IN A MEDICAL PATENT DISPUTE MEDRAD INC SAID IT FILED A PATENTINFRINGEMENT SUIT AGAINST RIVAL MEDICAL IMAGING EQUIPMENT MAKER LIEBEL FLARSHEIM INC CONCERNING A COMPUTED TOMOGRAPHY INJECTOR LIEBEL FLARSHEIM SAID IT WILL VIGOROUSLY FIGHT THE SUIT AND IS CONSIDERING FILING COUNTERCLAIMS A COMPUTED TOMOGRAPHY INJECTOR DELIVERS CONTRAST FLUID INTO THE BODY TO ENHANCE SOFTTISSUE IMAGES AT ISSUE IS A PATENT FOR A QUICKRELEASE FEATURE ON THE INJECTOR THAT PERMITS A PISTON TO BE ATTACHED OR DETACHED FROM A SYRINGE THE SUIT FILED IN US DISTRICT COURT IN PITTSBURGH ALLEGES LIEBEL FLARSHEIM'S CT 9000 INFRINGES ON A BASIC SYSTEM PATENT OWNED BY MEDRAD AND USES TECHNOLOGY DEVELOPED AND OWNED BY MEDRAD MEDRAD PITTSBURGH SAID IT IS SEEKING INJUNCTIVE RELIEF BARRING CLOSELY HELD LIEBEL FLARSHEIM CINCINNATI FROM CONTINUED SALES OF THE CT 9000 AS WELL AS DAMAGES IN CONNECTION WITH THE INJECTOR'S PRIOR SALES J PHILIP VOLLMER LIEBEL FLARSHEIM'S CHIEF EXECUTIVE SAID MEDRAD WANTS TO RESTRAIN OUR SALES EFFORT OF THE PRODUCT LIEBELFLARSHEIM BEGAN SHIPPING THE CT 9000 IN THE PAST THREE MONTHS WE CONSIDER THEIR PATENT TO BE COMPLETELY INVALID BECAUSE WE'VE HAD THIS FEATURE ON OUR INJECTOR PRODUCTS SINCE 1973 AND THEY ARE AWARE OF THIS MR VOLLMER SAID 9307120028 930712 LETTERS TO THE EDITOR ONE FOR ALL AND ALL FOR ONE I WAS SHOCKED TO READ SHELIA LEATHERMAN'S JUNE 17 EDITORIAL PAGE ARTICLE AMERICANS DON'T WANT A HEALTHCARE REVOLUTION APPARENTLY THE POLLS MS LEATHERMAN CONDUCTED DID NOT REACH THE THOUSANDS OF AMERICANS WHO HAVE LOST THEIR JOBS AND NO LONGER HAVE ANY HEALTH INSURANCE THE QUALITY OF HEALTH CARE IS NOT THE ISSUE ELIGIBILITY IS THE PROBLEM THERE IS ONLY ONE REAL SOLUTION FOR EVERYONE BECOMING ELIGIBLE AND THAT IS A NATIONAL HEALTH CARE PLAN ONEPAYER SYSTEM UNTIL THIS IS ACCOMPLISHED AND ALL AMERICANS CAN AVAIL THEMSELVES OF THE SAME COVERAGE SIMILAR TO SENIOR CITIZENS ON MEDICARE WE WILL CONTINUE TO HAVE MILLIONS OF UNINSURED CITIZENS WHY MUST TAXPAYERS PAY FOR HEALTH CARE FOR SCHOOLTEACHERS GOVERNMENT WORKERS LEGISLATORS ETC WHILE HAVING TO PAY PREMIUMS FOR THEIR OWN INDIVIDUAL COVERAGE THE ONLY EQUITABLE SOLUTION IS TO HAVE ALL AMERICANS HAVE THE SAME PROTECTION FOR THE SAME TAXPAYER DOLLARS EVEN WHEN THEY ARE UNEMPLOYED 9307120026 930712 BUSINESS BRIEF GEORGIAPACIFIC CORP JURY RULES IN FIRM'S FAVOR IN A DISPUTE OVER DIOXIN GEORGIAPACIFIC CORP SAID A JURY IN MISSISSIPPI RULED IN THE COMPANY'S FAVOR IN A DISPUTE OVER DIOXIN THE JURY IN GULFPORT MISS RULED THAT EFFLUENT FROM A PULP MILL OF A GEORGIAPACIFIC SUBSIDIARY IN NEW AUGUSTA MISS DIDN'T DAMAGE PROPERTY OWNED BY TWO COUPLES ABOUT 66 MILES DOWNSTREAM FROM THE PLANT THE COUPLES HAD CHARGED IN A LAWSUIT THAT TRACES OF DIOXIN DISCHARGED BY THE PLANT HAD HURT THEIR PROPERTY EACH OF THE FOUR PLAINTIFFS HAD SOUGHT 750000 IN ACTUAL DAMAGES AND 1 MILLION IN PUNITIVE DAMAGES THE LAWSUIT IS ONE OF HUNDREDS IN MISSISSIPPI INVOLVING GEORGIAPACIFIC AND ALLEGATIONS OF DIOXIN CONTAMINATION TO DATE THREE CASES HAVE COME TO COURT INCLUDING THE GULFPORT RULING THE ATLANTA FORESTPRODUCTS COMPANY LOST AND HAS APPEALED THE FIRST TWO CASES IT SAID IT HAS SPENT MORE THAN 100 MILLION TO ELIMINATE DIOXIN FORMATION DURING A BLEACHING PROCESS IN ITS MILLS 9307120025 930712 BUSINESS BRIEF BENSON EYECARE CORP PORTION OF OFFERING PROCEEDS USED FOR BONNEAU PURCHASE BENSON EYECARE CORP SAID IT COMPLETED A PUBLIC OFFERING OF 35 MILLION SHARES AT 7 A SHARE AND APPLIED PART OF THE PROCEEDS TOWARD THE ACQUISITION OF BONNEAU COS NEW YORKBASED BENSON WHICH OPERATES EYECARE CENTERS USED 163 MILLION FROM THE OFFERING AS THE CASH PORTION OF THE ACQUISITION IT PAID THE BALANCE OF ABOUT 45 MILLION IN STOCK ANY ADDITIONAL PROCEEDS WILL GO TOWARD REDUCING DEBT AND TO WORKING CAPITAL UNDERWRITERS FOR THE OFFERING WERE RAS SECURITIES CORP AND ABD SECURITIES CORP DALLASBASED BONNEAU A DISTRIBUTOR OF SUNGLASSES AND READING GLASSES HAD A NET LOSS LAST YEAR OF 39 MILLION AFTER A ONETIME CHARGE ON SALES OF 543 MILLION IN THE FIRST QUARTER OF 1993 IT HAD A PROFIT OF 24 MILLION ON SALES OF 159 MILLION BENSON HAD A NET LOSS LAST YEAR OF 18 MILLION ON SALES OF 167 MILLION 9307120024 930712 MERCANTILE EXCHANGE HALTS TRADING DUE TO OUTAGE NEW YORK VOLATILE TRADING ON THE NEW YORK MERCANTILE EXCHANGE CAME TO AN ABRUPT HALT FOR ABOUT AN HOUR AT MIDDAY FRIDAY BECAUSE OF A POWER OUTAGE AN EXCHANGE SPOKESWOMAN SAID THE WORLD'S LARGEST ENERGY FUTURES EXCHANGE ORDERED THE TRADING HALT WHICH LASTED FROM 1204 PM TO 1 PM EDT BECAUSE THE OUTAGE HAD AFFECTED THE FACILITY'S QUOTATION BOARDS THE TEMPORARY TRADING INTERRUPTION WAS THE SECOND IN AS MANY DAYS ON THURSDAY A TELEPHONE EXCHANGE GLITCH CURTAILED TRADING IN MOST OF THE FIVE FUTURES EXCHANGES HOUSED IN THE WORLD TRADE CENTER COMPLEX 9307120023 930712 REVIEW & OUTLOOK EDITORIAL ASIDES MARKET LEADER A REPORT ON OUR INTERNATIONAL PAGE FRIDAY INDICATED THAT A SURVEY AT THE EUROPEAN CHAIRMEN'S SYMPOSIUM LAST WEEK PLACED THE CZECH REPUBLIC AS THE MOST PROMISING ECONOMY IN CENTRAL AND EASTERN EUROPE THAT'S NO SURPRISE TO THOSE OF US WHO'VE ADMIRED CZECH PREMIER VACLAV KLAUS'S EFFORTS TO BRING CLASSIC MARKET ECONOMICS TO HIS COUNTRY MAYBE HE COULD DO A US LECTURE TOUR 9307120022 930712 DIVIDEND NEWS NEW YORK BANCORP NEW YORK BANCORP A DOUGLASTON NY HOLDING COMPANY FOR HOME FEDERAL SAVINGS BANK DECLARED A 3FOR2 STOCK SPLIT AND SAID IT WOULD BOOST ITS NEXT QUARTERLY DIVIDEND 20 THE STOCK SPLIT IS PAYABLE JULY 29 TO SHARES OF RECORD JULY 19 THE COMPANY CURRENTLY HAS 44 MILLION SHARES OUTSTANDING ON A PRESPLIT BASIS THE QUARTERLY DIVIDEND WILL BE INCREASED TO 30 CENTS A SHARE FROM 25 CENTS 9307120021 930712 GM DOCUMENTS FOUND BY PROSECUTORS ARE SAID TO CONTAIN SECRET CAR PLANS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL GERMAN PROSECUTORS FOUND SECRET PLANS FOR A NEW LOWCOST OPEL MODEL AMONG DOCUMENTS STASHED IN AN APARTMENT OCCUPIED BY TWO ALLIES OF FORMER GENERAL MOTORS CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATION PLANS FOR THE FORTHCOMING OPEL SMALL CAR AND THE LOWCOST FACTORY THAT WOULD BUILD IT WERE AMONG SEVERAL BOXES OF DOCUMENTS FOUND EARLIER THIS MONTH BY GERMAN PROSECUTORS IN A WIESBADEN APARTMENT RENTED BY TWO FORMER MANAGERS OF GM'S GERMAN DIVISION ADAM OPEL AG ACCORDING TO INDIVIDUALS FAMILIAR WITH THE INVESTIGATION PROSECUTORS HAD PREVIOUSLY SAID THE DOCUMENTS APPEARED TO BUTTRESS OPEL'S CHARGES THAT MR LOPEZ OR HIS ALLIES LEFT GM WITH COMPANY SECRETS OPEL OFFICIALS HAVE SINCE IDENTIFIED SOME OF THE DOCUMENTS AS CONFIDENTIAL COMPANY PLANS A PLANT AND A PRODUCT A WHOLE PACKAGE WAS IDENTIFIED ONE PERSON FAMILIAR WITH THE CASE SAID THE MANUFACTURING CONCEPT IS ALMOST AS IMPORTANT AS THE VEHICLE ITSELF A VOLKSWAGEN AG SPOKESMAN FRIDAY SAID THE FORMER GM MANAGERS WHO LIVED IN THE APARTMENT HAVE ASSURED VW THERE WERE NO SECRET DOCUMENTS IN THE BOXES OF PAPERS THEY LEFT BEHIND PROSECUTORS HAVEN'T CONFIRMED THE IDENTITIES OF THE FORMER GM MANAGERS WHO LIVED IN THE APARTMENT BUT OPEL AND VW OFFICIALS SAY THEY WERE AMONG SEVEN WHO JOINED VW SHORTLY AFTER MR LOPEZ BOLTED TO VW FROM GM IN MARCH MR LOPEZ HAS SAID HE LEFT GM BECAUSE THE COMPANY WOULDN'T SUPPORT HIS DREAM OF BUILDING A SUPEREFFICIENT CAR FACTORY NEAR HIS HOMETOWN OF AMOREBIETA SPAIN HOWEVER VW LAST WEEK SAID IT WON'T GO AHEAD WITH MR LOPEZ'S AMOREBIETA PLANT THIS YEAR BECAUSE OF THE EUROPEAN AUTO SALES SLUMP IT'S NOT A PRIORITY A VW SPOKESMAN SAID FRIDAY CONFIRMING VW CHAIRMAN FERDINAND PIECH'S REMARKS IN THE GERMAN NEWSPAPER DIE WELT THE SPOKESMAN ADDED THAT MR LOPEZ IS VERY WELLINFORMED ABOUT THIS DECISION THERE IS NO DISAGREEMENT IT'S NOT CLEAR WHETHER THE DOCUMENTS DISCOVERED BY THE GERMAN PROSECUTORS ARE RELATED TO MR LOPEZ'S AMOREBIETA FACTORY PLAN MR LOPEZ HAS SAID THAT HIS PLAN FOR AN ULTRAEFFICIENT FACTORY IS NO SECRET AND THAT HE TOOK NO CONFIDENTIAL DOCUMENTS WITH HIM FROM GM MR LOPEZ HOWEVER HAS REFUSED GM'S DEMANDS TO SIGN A CATEGORICAL STATEMENT THAT HE TOOK NO DOCUMENTS OF ANY KIND WITH HIM WHEN HE LEFT THE DISCOVERY OF THE CACHE OF PAPERS AT THE WIESBADEN FLAT HAS ACCELERATED THE PACE OF THE PROSECUTORS' INVESTIGATION INTO GM'S CHARGES THAT MR LOPEZ OR HIS ALLIES DID TAKE SECRET INFORMATION GM HAS PROVIDED GERMAN PROSECUTORS IN OPEL'S HOME STATE OF HESSE WITH STATEMENTS FROM EXECUTIVES AND OTHER EVIDENCE THAT MR LOPEZ AND THE SEVEN GM AND OPEL MANAGERS HAD CONFIDENTIAL COMPANY DOCUMENTS AT THE TIME OF THEIR DEPARTURE THAT GM CAN'T LOCATE NOW 9307120020 930712 BUSINESS BRIEF BANK OF BOSTON CORP SOCIETY FOR SAVINGS BANCORP ACQUISITION IS COMPLETED BANK OF BOSTON CORP SAID IT COMPLETED ITS ACQUISITION OF SOCIETY FOR SAVINGS BANCORP OF HARTFORD CONN THE ACQUISITION PROPOSAL WHICH CAME WITHIN WEEKS OF A BID BY THE BANK TO BUY MULTIBANK FINANCIAL CORP OF DEDHAM MASS WAS SCRUTINIZED LAST MONTH BY FEDERAL REGULATORS WHO HAD EXPRESSED CONCERNS ABOUT WHETHER BOSTONBASED BANK OF BOSTON'S CAPITAL WAS ADEQUATE TO HANDLE THE ALMOST SIMULTANEOUS ACQUISITIONS FOR A TOTAL OF ABOUT 443 MILLION IN STOCK THE FEDERAL RESERVE BOARD INITIALLY REJECTED THE ACQUISITION PROPOSALS BUT LATER APPROVED THE PURCHASES AFTER BANK OF BOSTON PLEDGED TO RAISE MORE CAPITAL UNDER THE TERMS OF THE AGREEMENT WITH SOCIETY FOR SAVINGS BANK OF BOSTON EXCHANGED 080 SHARE OF BANK OF BOSTON COMMON STOCK FOR EACH SHARE OF SOCIETY COMMON STOCK COMPLETION OF THE MULTIBANK FINANCIAL PURCHASE IS STILL PENDING 9307120019 930712 INTERNATIONAL SHIPHOLDING NEW ORLEANS INTERNATIONAL SHIPHOLDING CORP SAID IT COMPLETED ITS OFFERING OF 100 MILLION IN SENIOR NOTES BEARING 9 ANNUAL INTEREST THE OWNER OF A FLEET OF US AND FOREIGN FLAG VESSELS SAID THE PROCEEDS WILL BE USED TO REDEEM 155 MILLION PRINCIPAL AMOUNT OF THE COMPANY'S 14 SENIOR SUBORDINATED NOTES DUE JULY 1997 138 MILLION OF PREFERRED STOCK AND RETIRE 358 MILLION PRINCIPAL AMOUNT OF VARIABLE INTEREST RATE DEBT OF THE COMPANY'S UNITS THE REST OF THE PROCEEDS WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9307120018 930712 ABREAST OF THE MARKET TWIN ENGINES KEEPING STOCKS ALOFT MAY RUN OUT OF GAS BY NEXT YEAR BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SURE THERE'S STILL SOME SIZZLE LEFT IN THE STOCK MARKET THIS SUMMER BUT WHERE WILL STOCKS BE A YEAR FROM NOW WITH A SLUGGISH ECONOMY CASTING DOUBT ON ROSY EARNINGS PROJECTIONS FOR MANY COMPANIES ANALYSTS ARE BECOMING FEARFUL THAT THERE WON'T BE A SOLID PROFIT FOUNDATION PROPPING UP STOCK PRICES NEXT YEAR AT THE SAME TIME IT ISN'T LIKELY THAT INTEREST RATES CAN GO MUCH LOWER EVEN IF INFLATION REMAINS IN CHECK MOREOVER MANY SEE THE GROWING LIKELIHOOD THAT TAXES WILL BE HIGHER NEXT YEAR PUTTING A FURTHER DRAG ON THE ECONOMY I THINK WE MAY SEE A SEVERE DISAPPOINTMENT IN THE ECONOMY IN 1994 SAYS MICHAEL METZ INVESTMENT STRATEGIST AT OPPENHEIMER IF THE TAX INCREASES GO THROUGH WE COULD SEE ZERO GROWTH OR 1 GROWTH AND THAT'S NOT REFLECTED IN THE MARKET FOR SURE INDEED MR METZ SUGGESTS THAT THE CONDITIONS THAT HAVE GOTTEN THE STOCK MARKET THIS FAR LOW INFLATION AND MODERATE ECONOMIC GROWTH MAY ALREADY BE DISAPPEARING TO BE REPLACED BY SOMETHING A LOT LESS FRIENDLY STAGFLATION THAT'S THE TERM ANALYSTS GIVE TO AN ECONOMY IN WHICH GROWTH IS STAGNANT AND INFLATION IS RISING IT'S A RECIPE FOR HIGHER INTEREST RATES AND LOWER STOCK PRICES HE SAYS PREDICTING THAT THE DOW JONES INDUSTRIAL AVERAGE HAS ALREADY SEEN ITS PEAK AND WILL TRADE IN A RANGE OF 3000 TO 3550 FOR THE NEXT YEAR OF COURSE THE TAX PACKAGE COULD BE DEFEATED BUT THAT OFFERS MR METZ SCANT SOLACE BOND PRICES HAVE BEEN BUOYED THIS YEAR BY THE PROSPECT OF A DEFICITCUTTING TAX PLAN IF THE TAX INCREASES DON'T GO THROUGH THE BOND MARKET WON'T TAKE IT TOO WELL AND THAT WILL RESULT IN A FLIP UP IN INTEREST RATES HE SAYS IN ANY CASE MR METZ SAYS THE PSYCHOLOGY IN THE STOCK MARKET IS RIPE FOR A CHANGE AS INVESTORS GRAPPLE WITH SLUGGISH EARNINGS ARISING FROM THE RECENT ECONOMIC SLOWDOWN TAKE FOR INSTANCE THE SPIN THAT MANY INVESTORS ARE PUTTING ON PROJECTED POOR RESULTS AMONG TECHNOLOGY COMPANIES EVERYONE IS SAYING THIS SHORTFALL IN EARNINGS IS AN ISOLATED ANOMALY HE SAYS BUT INVESTORS ARE IN DENIAL AS OTHER INDUSTRY GROUPS START REPORTING POOR PROFITS HE SUSPECTS THE LOFTY EARNINGS EXPECTATIONS THAT HAVE KEPT STOCKS AFLOAT THIS YEAR WILL COLLAPSE LEADING TO A CORRECTION OF AS MUCH AS 15 STILL THERE ARE PLENTY OF ANALYSTS WHO AREN'T NEARLY SO WORRIED AND SOME WHO ARE DOWNRIGHT EBULLIENT ELAINE GARZARELLI STOCK MARKET STRATEGIST AT SHEARSON LEHMAN BROTHERS TAKES THE ENCOURAGING VIEW THAT THE WEAKER THE ECONOMY THE MORE IT STRETCHES OUT THE BULL MARKET HER LOGIC WHEN THE ECONOMY IS GROWING SLOWLY INTEREST RATES TEND TO STAY LOW AND THAT DRIVES INVESTORS WHO WOULD OTHERWISE BUY MORE CONSERVATIVE FINANCIAL ASSETS SUCH AS BONDS INTO THE STOCK MARKET A FEW MONTHS AGO MS GARZARELLI WAS PREDICTING THAT SHORTTERM RATES WOULD SPIKE UP AT THE END OF THIS YEAR SPARKING A CORRECTION IN STOCK PRICES BUT WITH THE RECENT EVIDENCE OF SLUGGISH JOB GROWTH AND WEAK CONSUMER CONFIDENCE MS GARZARELLI IS NOW FORECASTING A RISE IN SHORTTERM RATES ONLY IN THE MIDDLE OF 1994 THE ECONOMY IS A LITTLE WEAKER IN THE SECOND QUARTER THAN WE WERE THINKING SO IT NOW LOOKS LIKE MY SELL SIGNAL FOR STOCKS WILL BE PUSHED BACK ANOTHER SIX MONTHS SHE SAYS SHE HAS HER SIGHTS ON A DOW JONES INDUSTRIAL AVERAGE OF 4000 THIS YEAR AND 4500 IN 1994 THAT'S A SLIGHT IMPROVEMENT OVER HER FORECAST EARLIER THIS YEAR STRATEGISTS WILL BE KEEPING A CLOSE EYE ON STOCKS THAT ARE SENSITIVE TO THE ECONOMIC CYCLE AS THEY TRY TO DIVINE THE COURSE OF THE STOCK MARKET SO FAR THIS YEAR THE LEADERSHIP IN THE STOCK MARKET HAS COME FROM THESE CYCLICAL STOCKS MANY OF WHICH HAVE BEEN BID UP IN ANTICIPATION THAT A MORE BUOYANT ECONOMY WILL BOOST EARNINGS WAYNE NORDBERG A PARTNER AT LORD ABBETT WHICH MANAGES ABOUT 65 BILLION IN STOCKS POINTS OUT THAT IF THERE IS A DRAMATIC SLOWDOWN IN THE ECONOMY AND CYCLICAL STOCKS START DELIVERING DISAPPOINTING EARNINGS THEN THE MARKET COULD BE VULNERABLE TO A SETBACK IF YOU SEE WHERE THE TREMENDOUS STRENGTH IN THE MARKET HAS BEEN YOU'LL FIND IT HAS BEEN IN THE CATERPILLARS THE DEERES AND THE INGERSOLLRANDS SAYS MR NORDBERG THESE COMPANIES NEED HUGE INCREASES IN EARNINGS THIS YEAR AND NEXT TO JUSTIFY THEIR PRICES MOST ANALYSTS DON'T DISAGREE HOWEVER SOME POINT OUT THAT MANY OF THESE INDUSTRIAL GIANTS WILL STILL BE ABLE TO PRODUCE DOUBLEDIGIT PROFIT GAINS EVEN IN AN ECONOMY THAT IS TREADING WATER BECAUSE YOU ARE IN A VERY SLOW RECOVERY WHAT IS HAPPENING IS THAT THE BEST PERFORMING DOW STOCKS ARE MAKING THEIR OWN EARNINGS STORIES BY CHANGING THE WAY THEY DO BUSINESS SAYS EDWARD KERSCHNER STOCK STRATEGIST AT PAINEWEBBER THESE ARE COMPANIES THAT ARE NOT MOVING WITH THE ECONOMY THEY ARE MOVING ON THEIR OWN MOMENTUM MR KERSCHNER SAYS MANY OF AMERICA'S INDUSTRIAL GIANTS HAVE RESTRUCTURED THEIR OPERATIONS TO BE MORE EFFICIENT THAN THEY WERE IN THE 1980S MOREOVER WHAT THEY ARE LOSING IN EARNINGS THEY WILL BE GETTING IN LOWER INTEREST RATES SAYS MR KERSCHNER WHO IS EXPECTING STOCKS TO DELIVER A TOTAL RETURN OF ABOUT 5 IN THE SECOND HALF OF THIS YEAR NEXT YEAR HE IS LOOKING FOR STOCKS TO RETURN 7 TO 10 WHILE THERE ISN'T GOING TO BE ROBUST GROWTH I THINK THAT BY MID1994 YOU WILL HAVE ALL THE WORLD'S MAJOR ECONOMIES EXPERIENCING POSITIVE GROWTH AT THE SAME TIME SAYS MR KERSCHNER AND THAT'S IMPORTANT HE SAYS BECAUSE IT WOULD BE THE FIRST TIME SINCE 1989 THAT THE WORLD'S MAJOR INDUSTRIALIZED NATIONS WERE GROWING SIMULTANEOUSLY STRENGTH IN ECONOMICALLY SENSITIVE STOCKS PUSHED THE DOW JONES INDUSTRIAL AVERAGE TO A SLIM GAIN BUT OTHER MARKET AVERAGES ENDED LOWER ON THE BIG BOARD ADVANCING ISSUES OUTNUMBERED DECLINERS 1075 TO 845 VOLUME TOTALED 233514000 SHARES DOWN FROM 282872710 THURSDAY FOR THE WEEK THE DOW INDUSTRIALS ROSE 11 THE S&P 500 ADDED 05 AND THE BIG BOARD COMPOSITE INDEX INCHED UP 04 ALUMINUM CO OF AMERICA ROSE 1 1/4 TO 71 1/2 THE PITTSBURGH COMPANY POSTED SECONDQUARTER NET INCOME OF 40 CENTS A SHARE REVERSING A LOSS OF 57 CENTS A YEAR EARLIER BOTH PERIODS INCLUDED EXTRAORDINARY CHARGES UNITED TECHNOLOGIES ADDED 1 3/8 TO 54 1/4 TRADERS SAID THE STOCK ADVANCED AFTER A KIDDER PEABODY ANALYST REPEATED A STRONG BUY RECOMMENDATION GALEN HEALTH CARE TOPPED THE BIG BOARD'S MOSTACTIVE LIST SURGING 1 TO 20 1/4 TRADERS SPECULATED THAT THE BUYING WAS LINKED TO ARBITRAGE ACTIVITY ASSOCIATED WITH THE COMPANY'S PLANNED MERGER WITH COLUMBIA HOSPITAL STOCKS OF THE BIG THREE AUTO MAKERS ROLLED ON AS INVESTORS GAMBLED THAT DEMAND FOR CARS WILL BE ROBUST EVEN IF THE ECONOMY IS SLUGGISH FORD MOTOR GAINED 7/8 TO 52 1/8 CHRYSLER ADDED 3/8 TO 47 1/2 AND GENERAL MOTORS ROSE 5/8 TO 47 1/2 RAMSAYHMO JUMPED 1 3/4 TO 31 3/4 THE COMPANY SAID ITS HOME MAINTENANCE ORGANIZATION MEMBERSHIP LEAPED 21 TO 127491 IN JUNE FROM A YEAR AGO COAST SAVINGS FINANCIAL SLIPPED 5/8 TO 14 3/8 FIRST BOSTON LOWERED ITS INVESTMENT RATING ON THE STOCK TO HOLD FROM BUY TIPHOOK PLC SANK 2 1/8 TO 12 7/8 THE COMPANY SAID FRIDAY MORNING THAT ITS RESULTS FOR THE YEAR ENDED APRIL 30 WILL INCLUDE SIGNIFICANT CHANGES IN ACCOUNTING POLICIES TO BRING THEM MORE IN LINE WITH US PRACTICES TIPHOOK WHICH IS EXPECTED TO REPORT ITS RESULTS ON WEDNESDAY WOULDN'T SAY WHAT THE IMPACT OF THE ACCOUNTING CHANGES WILL BE LATER IN THE DAY TIPHOOK SAID IT FORMALLY REQUESTED AN INVESTIGATION OF VOLATILITY IN ITS SHARES ON THE LONDON STOCK EXCHANGE THE COMPANY SAID IT ASKED FOR THE PROBE IN AN ATTEMPT TO FIND OUT WHY ITS SHARES DROPPED SHARPLY BEFORE THIS MORNING'S ANNOUNCEMENT DAVE PETTIT CONTRIBUTED TO THIS COLUMN 9307120017 930712 USAIR TRAFFIC FELL 105 IN JUNE ARLINGTON VA USAIR SAID ITS TRAFFIC IN JUNE FELL 105 TO JUST UNDER THREE BILLION REVENUE PASSENGER MILES FROM 335 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 609 FROM 659 IN THE FIRST SIX MONTHS THE USAIR GROUP INC SUBSIDIARY SAID IT FLEW 169 BILLION REVENUE PASSENGER MILES UP 09 FROM 167 BILLION A YEAR EARLIER LOAD FACTOR WAS 581 COMPARED WITH 567 9307120016 930712 COMMODITIES SILVER RALLY OUTSHINES GOLD BUT ANALYSTS WARN AGAINST THE WHITE METAL'S VOLATILE TRACK RECORD BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LOOKING TO RIDE THE RALLY IN SILVER PROCEED WITH EXTREME CAUTION ANALYSTS SAY SILVER BROKE THROUGH THE 5 AN OUNCE LEVEL LAST WEEK AN IMPRESSIVE ACCOMPLISHMENT AFTER YEARS OF LANGUISHING AT LOWER PRICES BUT ANALYSTS WARN THAT ANY SIGN OF WEAKNESS COULD SEND THE LONGTARNISHED WHITE METAL ONCE AGAIN INTO A MAJOR SKID SILVER AT 5 IS A DISTINCTLY OVERBOUGHT POSITION SAYS GEORGE MILLINGSTANLEY A PRECIOUS METALS ANALYST WITH SHEARSON LEHMAN BROTHERS BASED ON PERCENTAGE CALCULATIONS SILVER HAS OUTSHONE ITS MUCH HIGHERPROFILE RIVAL GOLD IN THE RECENT SURGE IN PRECIOUS METALS PRICES FROM ITS SEVENYEAR LOW OF 352 AN OUNCE LAST YEAR SILVER HAS SOARED 48 TO A RECENT INTRADAY HIGH OF 520 GOLD HAS RALLIED A MUCH LESS IMPRESSIVE 23 FROM ITS SEVENYEAR LOWS TESTED IN MARCH FRIDAY SILVER FOR SEPTEMBER DELIVERY CLOSED FIVE CENTS LOWER AT 5028 ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY HAVING FAILED TO BREAK THROUGH THE SYMBOLIC 400 AN OUNCE LEVEL EARLIER IN THE WEEK SLID ON PROFITTAKING IT CLOSED FRIDAY AT 39230 OFF 330 ON THE COMEX SILVER'S BLAZING PACE NOTWITHSTANDING DEALERS AND ANALYSTS GENERALLY AGREE THAT SILVER HAS MERELY BEEN RIDING GOLD'S COATTAILS THE DANGER THEY SAY IS THAT THE SILVER FUTURES MARKET IS MUCH LESS LIQUIDAND THEREFORE FAR MORE VOLATILE THAN IS THE MARKET FOR GOLD SILVER STARTED TO RALLY BECAUSE IT TYPICALLY MOVES IN TANDEM WITH GOLD SAYS MR MILLINGSTANLEY BUT HE SAID SPECULATIVE BETS ON SILVER AS A TAGALONG TO GOLD CAN'T SUSTAIN FURTHER RISES IN THE WHITE METAL IF INDUSTRIAL DEMAND DOES NOT PICK UP SOON IN EUROPE OR JAPAN SILVER IS USED WIDELY IN THE PHOTOGRAPHIC AND CONSUMER ELECTRONIC INDUSTRIES I AM MUCH MORE CONFIDENT ABOUT UNDERLYING SUPPLY AND DEMAND FUNDAMENTALS IN GOLD THAN I AM IN SILVER SAYS MR MILLINGSTANLEY SPECULATIVE RALLIES LIKE THE ONE IN SILVER MOVE A LITTLE BIT FURTHER THAN YOU THINK BUT THEY'RE ALWAYS FOLLOWED BY SHARP FALLS WHEN THE INEVITABLE SELLOFF COMES SILVER HAS BEEN TRADING IN A VOID IN A VACUUM SAYS DENISE GIORDANO WHO RUNS PRECIOUS METALS TRADING FOR SWISS BANK IN NEW YORK ON A RALLY SILVER ALWAYS OUTPERFORMS GOLD BUT IT IS A MUCH THINNER SPECULATIVE MARKET GOLD IS A MONETARY COMMODITY WITH CENTRAL BANK AND GOVERNMENTS SERVING AS MAJOR PLAYERS AND PROVIDING LIQUIDITY TO THE GOLD BULLION FUTURES MARKET SHE SAYS AS A RESULT IF A CORRECTION COMES TO BOTH MARKETS THE MORE VOLATILE MOVE WILL BE IN SILVER SHE SAYS ADDING TO SILVER'S POTENTIAL WOES ANALYSTS STRESS IS AMPLE ABOVEGROUND STOCKS THERE ARE ABOUT ONE BILLION OUNCES OF INVESTMENT AND SPECULATIVE STOCKS OF SILVER BULLION HELD IN THE US SWITZERLAND LONDON AND ELSEWHERE SAYS ANTHONY WARWICKCHING A PRECIOUSMETALS CONSULTANT AT COMMODITIES RESEARCH UNIT LTD IN LONDON THAT TOTAL INCLUDES AN ESTIMATED 290 MILLION OUNCES STORED IN OFFICIAL WAREHOUSES OF FUTURES EXCHANGES IN NEW YORK CHICAGO AND TOKYO HE SAYS BUT THE SILVER INSTITUTE WHICH REPRESENTS PRODUCERS CONTENDS THAT WHILE US SILVER STOCKS AT THE COMEX REMAIN STEADY EUROPEAN SILVER STOCKS ARE FALLING WITH NEARLY 115 MILLION OUNCES OF SILVER BEING DRAWN OUT OF SWITZERLAND ALONE DURING 1991 AND 1992 TO MEET FABRICATION DEMAND IN COUNTRIES INCLUDING INDIA AND GERMANY WHATEVER THE ESTIMATE OF SILVER STOCKS DEALERS EXPECT STALE BULLS WHO BOUGHT SILVER AT MUCH HIGHER PRICES TO SELL IF THE PRICE RALLIES FURTHER MANY INVESTORS PURCHASED THE METAL AT PRICES RANGING FROM 7 TO 35 AN OUNCE IN THE LATE 1980S FOLLOWING SILVER'S PEAK OF 50 AN OUNCE IN 1980 US COMMODITY FUNDS AND MIDDLE EASTERN SYNDICATE BUYING CONTINUES APACE BUT ONCE HOLDERS OF SILVER START SELLING IN EARNEST THE MARKET WILL BE AMAZED HOW SHARPLY THE PRICE WILL FALL SAYS EDWIN ARNOLD A LONDONBASED METALS ANALYST AT MERRILL LYNCH AHEAD OF THE LATEST SPECULATIVE RUN HOWEVER SUPPLY AND DEMAND FUNDAMENTALS WERE IMPROVING SAYS MR WARWICKCHING OF COMMODITIES RESEARCH UNIT IN THE FIRST QUARTER DEMAND FROM THE PHOTOGRAPHIC ELECTRONIC AND OTHER KEY USERS EXCEEDED SUPPLIES BY AROUND 17 MILLION OUNCES HE SAYS MINE OUTPUT WAS STAGNANT IN 1992 AND LESS SCRAP WAS RECOVERED BECAUSE PRICES WERE SO DEPRESSED HE SAYS THIS YEAR THERE WERE MAJOR SILVER MINE CLOSURES IN MEXICO ALASKA AND THE YUKON IN CANADA THE SILVER INSTITUTE'S WORLD SILVER SURVEY REPORTS A WIDENING DEFICIT IN SILVER AND FORECASTS THAT DEMAND WILL EXCEED SUPPLY BY 1432 MILLION OUNCES UP FROM ROUGHLY 87 MILLION LAST YEAR JOSEPH ROSTA RESEARCH DIRECTOR OF CPM GROUP WHICH PRODUCED THE SURVEY SAYS THAT THE DEFICIT MIGHT BE AS LARGE AS 145 MILLION OUNCES AS A RESULT OF MINE CLOSURES I THINK SILVER IS STILL UNDERVALUED AND THAT IT COULD GET UP TO 580 BY THE END OF THE YEAR HE SAYS LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK GRAINS & SOYBEANS TRADERS THIS WEEK WILL CONTINUE TO MONITOR WEATHER FORECASTS FOR WARM AND DRY WEATHER THAT MIGHT EASE THE DEVASTATING FLOODING IN THE MIDWEST OR FOR FORECASTS OF ADDITIONAL RAIN GRAIN FUTURES PRICES FINISHED LAST WEEK WITH A RALLY AS MANY IN THE GRAIN INDUSTRY CURTAILED THEIR ESTIMATES OF THIS YEAR'S CORN AND SOYBEAN CROP BECAUSE OF WATER DAMAGE CONTINUED REDUCTION OF HARVEST ESTIMATES WOULD LIKELY EXERT ADDITIONAL UPWARD PRESSURE ON CORN AND SOYBEAN FUTURES PRICES AT THE CHICAGO BOARD OF TRADE SO ANALYSTS SAY WOULD MORE RAIN 9307120015 930712 BUNDESBANK CUT IN INTEREST RATE MAY COME SOON GERMANY'S CENTRAL BANK LIKELY TO REACT TO DROP IN FRANC AGAINST MARK BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHETHER IT LIKES IT OR NOT GERMANY'S BUNDESBANK WILL ONCE AGAIN NEED TO COME TO THE RESCUE OF THE EUROPEAN MONETARY SYSTEM BY CUTTING INTEREST RATES FURTHER IT'S A TRUISM THAT HAS BEEN BORNE OUT REPEATEDLY DURING THE COURSE OF EUROPE'S CURRENCY TURMOIL WHICH IS APPROACHING ITS FIRST ANNIVERSARY ANALYSTS ARE QUICK TO UNDERLINE THE IMPORTANCE FRENCH AND GERMAN LEADERS PLACE ON MAINTAINING THE EXCHANGE RATE MECHANISM OF THE EMS AS A TANGIBLE SIGN OF EC COOPERATION ON FINANCIAL MATTERS AND AS A PRECURSOR TO EVENTUAL MONETARY UNION THAT NECESSITATES THAT THE GERMAN CENTRAL BANK TRIM RATES WHENEVER TENSIONS IN THE SYSTEM THREATEN TO KNOCK OUT A KEY MEMBER SUCH AS THE FRENCH FRANC EVER SINCE FRENCH RATES DIPPED UNDER GERMAN RATES LAST MONTH THE FRANC HAS BEEN FALLING AGAINST THE MARK HITTING A LOW AT ONE POINT FRIDAY OF 34010 FRANCS 59 US CENTS TO THE GERMAN CURRENCY COMPARED WITH 33680 FRANCS REACHED IN EARLY JUNE BUT THE ROT WILL PROBABLY SOON SUBSIDE ANALYSTS SAY THE 340 FRANC TO THE MARK LEVEL IS CONSIDERED TO BE THE POINT AT WHICH THE BANK OF FRANCE BEGINS INTERVENING ON CURRENCY MARKETS ESSENTIALLY SELLING MARKS TO BUY FRANCS SOME TRADERS REPORTED SEEING THE FRENCH CENTRAL BANK IN THE MARKET FRIDAY ALTHOUGH OFFICIALS DECLINED TO CONFIRM ANY INTERVENTION OBVIOUSLY FRENCH AUTHORITIES ARE KEEN TO AVOID HAVING TO RAISE INTEREST RATES AS THEY HAVE DONE IN THE PAST TO FIGHT OFF CURRENCY WEAKNESS TIGHTER POLICY WOULD CONSTRICT GROWTH EVEN FURTHER THAT LEAVES THE BUNDESBANK WHICH HAS ALREADY SAID IT SEES SIGNS OF WEAKENING INFLATION PRESSURES AS THE RELIEVER OF LAST RESORT THE PROBABLE EVENT OVER THE COMING WEEKS IS ANOTHER BUNDESBANK CUT SAYS FRANCOISXAVIER CHAUCHAT AN ECONOMIST AT BANQUE INDOSUEZ IN PARIS THIS IS MAINLY FOR POLITICAL REASONS I DON'T THINK THE POLITICAL ENVIRONMENT HAS CHANGED BETWEEN THE TWO COUNTRIES AT ALL A CUT IN RATES COULD COME THURSDAY WHEN THE BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL MEETS FOR ITS SECONDTOLAST SESSION BEFORE ITS SUMMER RECESS IT'S MORE LIKELY HOWEVER THAT RATES WILL BE CUT AT THE LAST SESSION JULY 29 OR SHORTLY AFTER CENTRAL BANKERS RETURN IN SEPTEMBER IN ANY CASE THE BUNDESBANK IS LIKELY TO SIGNAL ITS ACCEPTANCE OF EASIER POLICY RATES NEXT WEEK BY LOWERING THE RATE IT SETS FOR SECURITIES REPURCHASE AGREEMENTS NEARLY EVERY BUNDESBANK EASING OVER THE PAST YEAR WAS PRECEDED BY OFFICIALS' FRETTING ABOUT INFLATION OR UNDERLINING THE IMPORTANCE OF A STRONG MARK JUST BEFORE THE LAST CUT JULY 1 THE GERMAN CENTRAL BANK TOOK GREAT PAINS TO UNDERLINE THAT IT WOULD NOT BOW TO OR EVEN ACKNOWLEDGE POLITICAL PRESSURE AND IN THE PROCESS IT CAUSED AN INTERNATIONAL RIFT BY ALLEGEDLY ORCHESTRATING THE CANCELLATION OF A FRANCOGERMAN MONETARY PARLEY YET OFFICIAL DEUTSCHE MARK RATES WERE CUT THE VERY NEXT OPPORTUNITY THE BUNDESBANK COULD AND BY A MARGIN GREATER THAN MARKETS HAD ANTICIPATED NEVERTHELESS CURRENCY SPECULATORS MANY OF WHOM WERE BURNED OVER THE PAST 12 MONTHS BY BETTING THAT THE FRENCH FRANC WOULD BE DEVALUED OR THAT THE SYSTEM WOULD COLLAPSE ALTOGETHER ARE OUT ON THE PROWL AGAIN THIS TIME THOUGH THE SPECULATORS FRENCH OFFICIALS CALL THEM AGITATEURS SEEM NOTICEABLY WEAKER PERHAPS BECAUSE THEY ARE STILL SMARTING FROM HAVING HAD TO FINANCE THEIR SPECULATION BY PAYING DOUBLEDIGIT INTEREST RATES THIS TIME AROUND THE SITUATION IS CONSIDERABLY DIFFERENT IN JULY 1992 THREEMONTH FRENCH FRANC RATES WERE AROUND 10 WHILE GERMAN RATES WERE ABOUT 950 BY THE END OF LAST MONTH THOUGH FRENCH SHORTTERM RATES WERE DOWN TO 690 WHILE GERMAN EQUIVALENTS WERE 725 THAT CHANGE MEANT SHORTSELLERS OF FRENCH FRANCS WERE NO LONGER GETTING PENALIZED FOR DOING SO BECAUSE FOR THE FIRST TIME IN DECADES THEY DIDN'T CARRY HIGHER SHORTTERM INTEREST RATES THE ILLTIMED AND ILLWORDED ANNOUNCEMENT IN LATE JUNE BY FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY THAT THE FRENCH AND THE GERMANS WERE GATHERING TO PLAN A COORDINATED CUT IN INTEREST RATES MADE THE MARKET NERVOUS SUDDENLY IT PUT THE FOCUS ON FRANCE'S SEEMING DESPERATION TO EASE MONETARY CONSTRAINTS AND LIFT ITS MORIBUND ECONOMY NEGATIVE NEWS LAST WEEK FURTHER ERODED SENTIMENT ESPECIALLY A REPORT ON THURSDAY BY THE FRENCH STATISTICAL INSTITUTE WHICH FORECAST A SHRINKAGE OF 12 IN THE NATION'S GROSS DOMESTIC PRODUCT SALOMON BROTHERS ECONOMIST JEAN FRANCOIS MERCIER SAYS THE IMPORTANCE OF GLOOMY REPORTS ON THE FRENCH ECONOMY WAS PROBABLY OVERESTIMATED THE NEWS CERTAINLY WASN'T FAVORABLE TO THE FRANC BUT MOST SERIOUS FORECASTERS HAD ALREADY ANTICIPATED IT ALSO HURTING THE MOOD WERE STATEMENTS BY MEMBERS OF PARLIAMENT FROM THE GOVERNING COALITION EXPRESSING FRUSTRATION WITH THE CURRENT FRANC FORT POLICY THROUGH WHICH THE CURRENCY STABILITY IS OF PRIMARY CONCERN EVEN IN THE FACE OF A SEVERE RECESSION KLAUS HOLSCHUH AN ANALYST AT COMMERZBANK IN FRANKFURT SAYS THE RECENT GAINS POSTED BY THE MARK AGAINST MOST OTHER MAJOR CURRENCIES WERE LARGELY AN ADJUSTMENT FOLLOWING OVERLY BEARISH SENTIMENT TOWARD THE GERMAN CURRENCY WITNESSED IN JUNE WE NOW THINK THE FUNDAMENTAL LEVELS IN THE EUROPEAN MONETARY SYSTEM ARE APPROPRIATE AS FAR AS PURCHASING POWER PARITY IS CONCERNED MR HOLSCHUH SAYS SOME IN THE MARKETS MIGHT BE SENSING A BIT OF DEJA VU IN THE TIMING OF ALL THIS INDEED THE BUNDESBANK CUT RATES SEPT 14 LAST YEAR AFTER IT EXTRACTED AN AGREEMENT FROM ITALIAN AUTHORITIES TO DEVALUE THE LIRA BY 7 ALTHOUGH THERE WAS INITIAL CHEER AT THE MOVE EVENTUALLY TENSIONS ROSE IN THE EMS TO THE POINT THAT THE LIRA AND THE UK POUND WERE FORCED TO PULL OUT FROM THE MECHANISM THEY ARE BOTH STILL OUTSIDE THE ERM TODAY ELISABETH LEGGE AN ECONOMIST AT DRESDNER BANK IN LONDON THINKS THE SCHEDULE OF THE NEXT BUNDESBANK EASING COULD BE THE SAME AS LAST YEAR ALTHOUGH SHE DOESN'T ANTICIPATE ANOTHER CURRENCY CRISIS WE'RE IN THE SUMMER DOLDRUMS SHE SAYS I THINK THE MARKETS WILL BUILD UP TO IT AND WHEN EVERYONE RETURNS IN SEPTEMBER THERE WILL BE ENOUGH PRESSURE BUILT UP TO FORCE THE BUNDESBANK TO LOWER RATES 9307120014 930712 GOODYEAR CHARGES GENERAL TIRE PRODUCT VIOLATES ITS PATENT AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT FILED A PATENTINFRINGEMENT SUIT AGAINST GENERAL TIRE INC ALLEGING GENERAL'S NEW HYDRO 2000 TIRE VIOLATES THE PATENT ON GOODYEAR'S AQUATRED GOODYEAR SAID THE SUIT FILED FRIDAY IN US DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA SEEKS A COURT ORDER BARRING GENERAL TIRE FROM SELLING THE PRODUCT AS WELL AS UNSPECIFIED DAMAGES GOODYEAR INTRODUCED AQUATRED IN LATE 1991 SAYING ITS TREAD WAS SPECIFICALLY DESIGNED FOR WETWEATHER DRIVING ALAN OCKENE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENERAL TIRE SAID THE HYDRO 2000 WHICH WAS INTRODUCED IN THIS YEAR'S FIRST QUARTER IS NOT COVERED BY ANY VALID CLAIM OF THE GOODYEAR PATENT MR OCKENE SAID GOODYEAR'S SUIT CAME AS NO SURPRISE GIVEN THE COMPETITIVE NATURE OF THE TIRE INDUSTRY WE HAD SOME INDICATION THEY MIGHT DO THAT HE SAID GENERAL TIRE IS A UNIT OF CONTINENTAL AG BASED IN GERMANY AQUATRED AND HYDRO 2000 ARE DESIGNED TO IMPROVE TRACTION ON WET ROADS AND PREVENT VEHICLES FROM HYDROPLANING GOODYEAR'S SUIT CHARGES THAT THE HYDRO 2000 DUPLICATES AQUATRED'S UNIQUE FOOTPRINT WHICH INCLUDES A WIDE CENTRAL GROOVE AND LATERAL TREAD GROOVES A SPOKESMAN FOR GOODYEAR SAID IT IS AWARE THAT ITS COMPETITORS ARE DEVELOPING RIVALS TO AQUATRED AND THAT IT INTENDS TO POLICE ITS PROPRIETARY PATENTS ACCORDING TO GOODYEAR FRANCE'S GROUPE MICHELIN HAS SAID IT WILL INTRODUCE A WETWEATHER TIRE IN 1996 GOODYEAR RECENTLY FILED SUIT AGAINST SILVERSTONE TIRE & RUBBER CO A MALAYSIAN COMPANY WHICH HAS INTRODUCED A TIRE SIMILAR TO AQUATRED CALLED AQUAGRIP THE SUIT FILED IN MALAYSIA CHARGES SILVERSTONE WITH INTELLECTUAL PROPERTYRIGHTS VIOLATIONS 9307120013 930712 ANTITRUST DOGFIGHT PREDATORY PRICING ISSUE IS DUE TO BE TAKEN UP IN AMERICAN AIR'S TRIAL WEAKER CARRIERS SAY THE LINE TRIED TO DESTROY THEM WITH A NEW FARE SYSTEM BIG SHIFT IN COURT RULINGS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL GALVESTON TEXAS TODAY'S PENNYPINCHING CONSUMERS ARE FORCING COMPANIES IN COMPETITIVE INDUSTRIES TO PLAY THEIR TRUMP CARDPRICE CUTS BUT IN MANY INDUSTRIES COMPANIES RESORTING TO THAT STRATEGY FACE THE DANGER THAT WEAK RIVALS WILL QUICKLY SCREAM PREDATOR IN BUYING CLOTHING AIRLINE TICKETS EVEN COMPUTERS A LOT OF CONSUMERS HAVE BEEN WEANED FROM PAYING REGULAR PRICES CONSUMER EXPECTATIONS HAVE BEEN CHANGED SO THAT CONSUMERS WAIT TO BUY BECAUSE THEY FEEL THEY DON'T HAVE TO WAIT VERY LONG FOR PRICES TO COME DOWN SAYS ANTHONY D COX AN ASSOCIATE PROFESSOR OF MARKETING AT INDIANA UNIVERSITY HOW A COMPANY PRICES ITS PRODUCTS IS THE CORE ISSUE IN A SHOWCASE TRIAL THAT WILL PIT THE NATION'S LARGEST RICHEST AIRLINE AGAINST TWO FINANCIALLY WEAKER COMPETITORS CONTINENTAL AIRLINES AND NORTHWEST AIRLINES CHARGE THAT AMR CORP'S AMERICAN AIRLINES TRIED TO RUN THEM OUT OF BUSINESS LAST SUMMER WITH FARE CUTS AMERICAN SAYS IT WAS MERELY TRYING TO LURE RELUCTANT PEOPLE ESPECIALLY BUSINESSPEOPLE INTO ITS SEATS THE DRAMA STARTING TODAY IN A COURT IN THIS RESORT TOWN IS ONE GOING ON TO SOME DEGREE EVERY DAY IN THOUSANDS OF BUSINESSES THAT CONTINUALLY TEST NEW WAYS TO REACH CUSTOMERS TO A VAST RANGE OF COMPANIES FROM ALUMINUM PRODUCERS TO DIAPER MAKERS TO TVSET MANUFACTURERS TO FOOD PROCESSORS CUTTING PRICES IS THE BEST AND OFTEN THE ONLY WEAPON AVAILABLE THE PROBLEM WE HAVE IS THE CONSUMER SAYS DOMINICK CELENTANO JR A VICE PRESIDENT AT CELENTANO INC A VERONA NJ FROZENPASTA MAKER THEIR BUYING HABITS HAVE CHANGED PEOPLE ARE MORE PRICEVALUE CONSCIOUS AND ARE TRADING DOWN WHEN A PRICE WAR BROKE OUT EARLIER THIS YEAR AMONG LARGER FROZENFOOD COMPANIES BATTLING FOR MARKET SHARE WE GOT CAUGHT UP IN IT MR CELENTANO LAMENTS WHAT HAPPENS IS SMALLER BUSINESSES LIKE OURSELVES HAVE TO FOLLOW SUIT BUT INCREASINGLY COMPANIES SAY IT IS HARDER TO DISTINGUISH BETWEEN COMPETITIVE PRICING AND PREDATORY BEHAVIOR THE DEPRESSIONERA LAWS DEFINING PREDATORY BUSINESS PRACTICES WERE DESIGNED TO PROTECT AILING COMPANIES FROM TOOVIGOROUS COMPETITION UNDER THOSE LAWS THE GOVERNMENT EVEN INDICTED THE GREAT ATLANTIC & PACIFIC GROCERYSTORE CHAIN 30 YEARS AGO FOR WARNING ITS SUPPLIERS THAT A&P WOULD START ITS OWN GENERIC BRANDS IF THEY DIDN'T CUT THEIR PRICES NOW SUCH STORE BRANDS ARE COMMON YESTERDAY'S ANTICOMPETITIVE BEHAVIOR HAS BECOME BUSINESSASUSUAL AND THE COURTS HAVE BECOME LESS INCLINED TO PROTECT COMPETITORS AND MORE CONCERNED ABOUT THE IMMEDIATE INTERESTS OF CONSUMERS WITH ROCKBOTTOM PRICES SYNONYMOUS WITH VIGOROUS COMPETITION COMPANIES KNOWINGLY OR NOT MAY BE DANCING ON THE EDGE OF ILLEGAL ACTIVITY THERE'S NO SHARP LINE THERE CAN'T BE SAYS JEFFREY HARRIS AN ECONOMIST AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY BUT MUCH AS SOME JURISTS REACT TO OBSCENITY HE ADDS YOU KNOW PREDATORY PRICING IF YOU SEE IT HOWEVER A US SUPREME COURT RULING JUST THREE WEEKS AGO MAKES IT TOUGHER THAN EVER FOR A COMPANY TO PROVE THAT A RIVAL HAS SLASHED PRICES TO HURT COMPETITORS IN A 6TO3 DECISION THE COURT AFFIRMED LOWERCOURT DECISIONS OVERTURNING A 150 MILLION AWARD BROOKE GROUP LTD WON IN A SUIT THAT CHARGED THE BROWN & WILLIAMSON TOBACCO UNIT OF BA T INDUSTRIES PLC WITH USING UNFAIR PRICE CUTS TO TRY TO DRIVE BROOKE OUT OF THE GENERICCIGARETTES MARKET IN THE MAJORITY OPINION JUSTICE ANTHONY KENNEDY WROTE THAT PREDATORY PRICING SCHEMES IN GENERAL ARE IMPLAUSIBLE AND THAT A PLAINTIFF MUST SHOW THAT ANY SCHEME ULTIMATELY WOULD CAUSE PRICES TO RISE THUS COMPENSATING THE ALLEGED PREDATOR FOR SLASHING PRICES IN THE FIRST PLACE SINCE THE SUPREME COURT DECISION AMERICAN HAS AGAIN URGED US DISTRICT JUDGE SAMUEL KENT TO DISMISS THE CASE JUDGE KENT DID THROW OUT ALLEGATIONS THAT AMERICAN HAD TRIED TO FORM AN OLIGOPOLY WITH OTHER BIG AIRLINES BUT HE RULED THAT THERE WAS ENOUGH EVIDENCE TO TAKE THE PREDATORYPRICING ALLEGATIONS TO A JURY DAVID BOIES AN ATTORNEY FOR CONTINENTAL SAYS THE PLAINTIFFS ARE NARROWING THE FOCUS OF THEIR CASE BECAUSE OF THE SUPREME COURT DECISION I THINK THE RECOUPMENT ISSUE BECOMES MORE IMPORTANT HE EXPLAINS THAT'S FRANKLY A GROUND THAT WE'RE QUITE HAPPY TO FIGHT ON CONTINENTAL AND NORTHWEST PLAN TO SHOW THAT AMR EXPECTED ITS NET INCOME WOULD RISE 17 BILLION OVER THE NEXT FIVE YEARS AS OTHER CARRIERS COLLAPSED AND THE INDUSTRY CONSOLIDATED FOR ITS PART AMERICAN PLANS TO PROVE THAT THE TWO AIRLINES' LOSSES WERE THE RESULT OF POOR MANAGEMENT IN THE GALVESTON ANTITRUST CASE I THINK WE'RE GOING TO SEE THAT AMERICAN AIRLINES WILL BE ONE OF THE FIRST CASES TO TEST WHERE THE LINE IS AND HOW EASY IT IS TO CROSS IT SAYS GARRETT RASMUSSEN AN ATTORNEY AT PATTON BOGGS & BLOW IN WASHINGTON DC WHO REPRESENTED BROOKE GROUP BUT THE TOUGHER LINE IS SO FUZZY THAT NORTHWEST AND CONTINENTAL THEMSELVES HAVE BEEN ACCUSED OF PREDATORY PRICING AT THE SAME TIME THEY ARE SUING AMERICAN FOR ANTICOMPETITIVE BEHAVIOR IN MAY CONTINENTAL EXECUTIVES WERE SUMMONED TO MEET WITH DEPARTMENT OF TRANSPORTATION OFFICIALS IN WASHINGTON TO ANSWER UNFAIRCOMPETITION CHARGES BY ULTRAIR A HOUSTONBASED STARTUP CARRIER THE DEPARTMENT TOOK NO ACTION BUT LAST MONTH ULTRAIR SUED CONTINENTAL IN THE SAME COURT IN WHICH CONTINENTAL SUED AMERICAN MAKING NEARLY IDENTICAL ALLEGATIONS CONTINENTAL ALSO HEADQUARTERED IN HOUSTON SAYS THERE ARE NO SIMILARITIES BETWEEN THE CASES AND IN MARCH THE DEPARTMENT FORCED NORTHWEST AIRLINES A WINGS HOLDINGS INC UNIT TO ABANDON PLANS TO UNDERCUT RENO AIR IN THREE OF THAT CARRIER'S WEST COAST MARKETS AFTER RENO ANNOUNCED PLANS TO START FLYING TO MINNEAPOLIS NORTHWEST'S HOMETOWN HUB THE AGENCY'S MOVE WAS PERCEIVED AS A SIGN THAT IT WILL FIGHT WHAT IT CONSIDERS OVERLY AGGRESSIVE PRICING THE FACT THAT BOTH COMPANIES CAN BE SIMULTANEOUSLY ON BOTH SIDES OF THE PRICING ISSUE SHOWS THE MESS IN WHICH THE AIRLINE INDUSTRY HAS LANDED AFTER A DECADE OF FRIGHTENING PRICE COMPETITION OF COURSE PEOPLE WANT TO PAY LOWER PRICES SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OFFICER OF LEO J SHAPIRO & ASSOCIATES A CHICAGOBASED MARKETRESEARCH FIRM THE CONSUMERS HAVE LEARNED THAT AIRLINE PRICING IS HIGHLY VOLATILE AND THE FACT THAT YOU BOUGHT AT ONE PRICE LAST YEAR DOESN'T SET THE STANDARD FOR THIS YEAR IN THE CONTINENTALNORTHWEST CASE AGAINST AMERICAN THE TWO SMALLER CARRIERS ARE PAINTING THE STRONGER RICHER AMR UNIT AS THE AGGRESSOR AND SEEKING DAMAGES OF 3 BILLION FURTHER MUDDYING THE SITUATION IS THE FACT THAT THE FORT WORTH TEXAS COMPANY IS HEADED BY THE TOUGHTALKING ROBERT CRANDALL WHOM LLOYD CONSTANTINE A FORDHAM LAW PROFESSOR AND PRACTICING ATTORNEY CALLS A WALKING ANTITRUST CASE THAT IS A REFERENCE TO A LEGENDARY PROFANITYLACED 1982 TELEPHONE CONVERSATION IN WHICH MR CRANDALL EXHORTED A RIVAL AIRLINE EXECUTIVE TO RAISE YOUR GODDAMN FARES 20 I'LL RAISE MINE THE NEXT MORNING YOU'LL MAKE MORE MONEY AND I WILL TOO THE AMR CHAIRMAN ULTIMATELY SETTLED PRICEFIXING CHARGES WITHOUT ADMITTING OR DENYING GUILT THE GALVESTON JURY WON'T HEAR THAT CONVERSATION US DISTRICT JUDGE KENT DEEMS IT TOO OLD AND NOT GERMANE TO THE 1992 VALUE PRICING PLAN AT THE HEART OF TODAY'S CASE BUT THE JURY WILL HEAR MR CRANDALL'S REPEATED COMPLAINTS IN THE MONTHS LEADING UP TO AMERICAN'S PRICING PLAN ABOUT THE INDUSTRY'S FARES HIS TESTIMONY BEFORE A SENATE COMMERCE SCIENCE AND TRANSPORTATION SUBCOMMITTEE LAST SUMMER SUMMED UP HIS VIEW IT HAS PROVEN IMPOSSIBLE TO OPERATE PROFITABLY IN AN OVERPOPULATED COMPETITIVE SYSTEM IF WE WANT A COMPETITIVE AIRLINE SYSTEM WE MUST ALLOW THE MARKET TO FINISH THE PAINFUL PROCESS OF ELIMINATING WHATEVER NUMBER OF CARRIERS ARE SURPLUS TO THE MARKET'S NEEDS VALUE PRICING BECAME AMERICAN'S OFFICIAL POLICY IN MARCH 1992 AFTER MR CRANDALL PUT ON AN ELABORATE SLIDE SHOW TELLING AMR DIRECTORS THAT CUSTOMERS HAVE BEEN ALIENATED AND AGGRAVATED BY A PRICE STRUCTURE PERCEIVED AS IRRATIONAL UNFAIR AND VERY COMPLEX HIS SOLUTION WAS A NEW FOURTIER FARE STRUCTURE WITH ONLY FIRSTCLASS UNRESTRICTEDCOACH AND 14DAY AND 30DAY ADVANCEPURCHASE TICKETS AND WITH ALL SPECIAL DISCOUNTS ELIMINATED FIRSTCLASS FARES WOULD BE 20 TO 50 LOWER AND COACH SEATS 40 LOWER THAN CURRENT FARES VALUE PRICING MR CRANDALL SAID WOULD STIMULATE TRAFFIC ELIMINATE SPECIAL DEALS ESTABLISH A FAIRER FARE STRUCTURE AND INCREASE AMERICAN'S REVENUE AND PROFITABILITY THE IDEA OF ACROSSTHEBOARD PRICE CUTS ON THE EXPECTATION THAT EXPANDED TRAFFIC WOULD EVENTUALLY INCREASE REVENUE WASN'T NEW FORMER CONTINENTAL AIRLINES CHAIRMAN FRANK LORENZO SAYS HIS AIRLINE LOOKED AT A VERSION OF THE IDEA IN 1990 BUT SCRAPPED IT BECAUSE CONTINENTAL COULDN'T AFFORD AN ANTICIPATED 5MILLIONAMONTH LOSS UNTIL THE REVENUE FROM HIGHER TRAFFIC KICKED IN AT AMERICAN THE VALUEPRICING IDEA WAS FIRST BROACHED IN MID1991 AND WAS EXTENSIVELY STUDIED BY THE LINE'S PLANNING DEPARTMENT WITH THE HELP OF CONSULTANTS TALKING TO HIS BOARD MR CRANDALL WARNED THAT RESTRUCTURING THE SYSTEM WOULD BE COSTLY AMR COULD EXPECT A REVENUE LOSS OF 592 MILLION DURING THE FIRST MONTH OF IMPLEMENTATION 328 MILLION IN THE SECOND AND 209 MILLION IN THE THIRD HOWEVER MR CRANDALL EXPECTED THE CUTS TO STIMULATE TRAFFIC AND REDUCE COSTS LOOKING TO THE ULTIMATE BENEFIT THE BOARD APPROVED VALUE PRICING WHICH WAS ANNOUNCED APRIL 9 1992 AND WENT INTO EFFECT A FEW DAYS LATER AMERICAN'S CALCULATIONS INCLUDED FORECASTS OF HOW MUCH ITS RIVALS MIGHT LOSE AS WELL IN FEBRUARY 1992 ITS PLANNING DEPARTMENT ESTIMATED THAT THE FIVE WEAKEST US CARRIERS' COMBINED REVENUE LOSS WOULD BE 3507 MILLION ACCORDING TO AN INTERNAL DOCUMENT THAT CONTINENTAL AND NORTHWEST PLAN TO USE AS EVIDENCE IN THE CASE LATER AS VARIOUS AIRLINES RESPONDED BY CUTTING THEIR OWN FARES REPEATEDLY AMERICAN REWORKED ITS ESTIMATES TO SHOW WEAKER CARRIERS LOSING 561 MILLION AMERICAN INITIALLY PREDICTED THAT CONTINENTAL'S REVENUE WOULD DROP 1231 MILLION AND LATER REVISED THE FORECAST TO 197 MILLION IT PUT NORTHWEST'S DECLINE INITIALLY AT 542 MILLION AND LATER AT 867 MILLION CONTINENTAL AND NORTHWEST ALLEGE THAT AMERICAN'S PREOCCUPATION WITH HOW MUCH WEAKER CARRIERS WOULD LOSE SHOWS THAT VALUE PRICING WAS DESIGNED TO MAIM OR KILL THEM AMERICAN CONTENDS THAT ANY PRUDENT COMPANY WOULD ESTIMATE THE IMPACT OF SUCH A PROGRAM ON COMPETITORS AND THAT OTHER AMR STUDIES SHOW THAT THOSE SAME CARRIERS WOULD BENEFIT FINANCIALLY AS MORE PEOPLE FLEW WITH FEWER DISCOUNTS CONFRONTED WITH VALUE PRICING AMERICAN'S RIVALS INCLUDING NORTHWEST AND CONTINENTAL INITIALLY EMBRACED IT BUT WITH THE RECESSION HOLDING DOWN TRAFFIC THE WEAKER AIRLINES SOON TRIED TO LURE CUSTOMERS WITH DIFFERENT STILLDEEPER CUTS AMERICA WEST AND TRANS WORLD AIRLINES ATTEMPTED TO UNDERCUT AMERICAN BY OFFERING FARES A BIT LOWER THAN ITS ALREADYSTEEP 40 CUT CONTINENTAL IN ANOTHER MANEUVER SOUGHT TO EXPLOIT A LOOPHOLE IN AMERICAN'S FARE STRUCTURE AFTER AMERICAN ELIMINATED DISCOUNTS FOR BIG CORPORATE CUSTOMERS CONTINENTAL'S PROGRAM WAS DUBBED KICKAASS A PLAY ON AMERICAN'S USE OF A DOUBLEA ON SUCH MARKETING PROGRAMS AS AADVANTAGE ITS FREQUENTFLYER CLUB SUCH TACTICS WORKED BOTH WAYS CONTINENTAL'S PILOTS SAY THEY SAW AMERICAN'S WEARING BUTTONS THAT MADE A PLAY ON CONTINENTAL'S SLOGAN ONE AIRLINE CAN MAKE A DIFFERENCE THE BUTTONS SAID ONE LESS AIRLINE CAN MAKE A DIFFERENCE VALUE PRICING ENTERED A SECOND MORE OMINOUS PHASE ON MAY 26 LAST YEAR AFTER NORTHWEST INITIATED A GROWNUPS FLY FREE PROMOTION WHICH OFFERED PASSENGERS TRAVELING WITH CHILDREN A FREE SEAT AMERICAN WHICH SAW ITS FARE STRUCTURE BEING SHOT DOWN PROMPTLY HALVED THE PRICE OF ALL ITS CHEAPEST SEATS THOSE REQUIRING A SATURDAYNIGHT LAYOVER IN DOING SO IT WAS RESPONDING JUST AS MR CRANDALL HAD WARNED IT MIGHT IF OTHER CARRIERS FLOATED A CHEAPER FARE THAT COULD SUBVERT VALUE PRICING IF WE DECIDE WE'RE GOING TO MATCH IT WE'RE GOING TO MOVE THE WHOLE STRUCTURE DOWN TO MATCH IT HE HAD SAID WE ARE NOT GOING TO PERMIT THE REEMERGENCE OF THIS PROLIFERATION OF FARES THE INDUSTRY WAS IN AN UPROAR AS PASSENGERS FLOCKED TO BUY TICKETS AND AIRLINES BEMOANED THE HUNDREDS OF MILLIONS OF DOLLARS THEY KNEW THEY WOULD LOSE THAT SUMMER MR CRANDALL WAS IN THE HOT SEAT IN EARLY JUNE JUST DAYS AFTER THE HALFPRICE SALE ENDED HE FACED AN ANGRY CONVENTION OF CORPORATE TRAVEL PLANNERS MANY OF WHOSE CLIENTS HAD BEEN SQUEEZED OUT OF THE SALE BECAUSE THEY COULDN'T MEET THE SATURDAYNIGHT PROVISION ONE PLANNER ASKED HOW MR CRANDALL COULD JUSTIFY LIMITING HIS FARE SALE TO LEISURE TRAVELERS THE AMR CHAIRMAN SNAPPED IT IS OUR PRODUCT AND AMERICAN CAN PRICE IT ANYWAY IT CHOOSES CAN IT AS THE ULTIMATE ARBITER THE CONSUMER STILL APPEARS TO BE TELLING AIRLINES THEIR TICKET PRICES ARE TOO HIGH EVEN THOUGH THE US CARRIERS LOST A TOTAL OF 10 BILLION IN THE PAST THREE YEARS AIRLINE TRAFFIC TAPERED OFF AFTER LAST SUMMER AND THIS SUMMER MORE BARGAINHUNGRY TRAVELERS SEEM TO BE DRIVING OR STAYING HOME RATHER THAN FLYING AND PAYING HIGHER FARES THIS YEAR'S ROUND OF FARE CUTS NOWHERE NEAR AS STEEP AS LAST YEAR'S HAVE LINGERED ON WELL INTO JULY IN PREVIOUS YEARS AIRLINES BY THEN WOULD HAVE SOLD MOST OF THEIR SEATS IN GALVESTON THE ATTORNEYS AND EXPERT WITNESSES ARE GATHERING TO WRESTLE WITH THE FUNDAMENTALS OF FAIR COMPETITION CERTAINLY SOME OF THEM WILL MAKE THE CLASSIC ARGUMENT THAT INAPPROPRIATE PRICE CUTS NOW CAN REDUCE COMPETITION LATER ULTIMATELY PUSHING PRICES HIGHER AND COSTING CONSUMERS MORE BUT HOWEVER THE CASE IS DECIDED CONSUMERS HAVE MADE THEIR CHOICE CONSUMERS DON'T CARE THEY WANT WHAT'S BEST FOR ME NOW' SAYS JUDITH LANGER A RETAIL CONSULTANT WHO RUNS LANGER ASSOCIATES IN NEW YORK THEY DON'T KNOW OR CARE ABOUT THE LONGTERM EFFECTS ON THE INDUSTRY 9307120012 930712 MANAGER'S JOURNAL BIG BLUE ON THE COMEBACK TRAIL BY JACK FALVEY LAST WEEK LOUIS V GERSTNER IBM'S FIRST CHIEF TO BE BROUGHT IN FROM OUTSIDE THE COMPANY SINCE APRIL 1914 WHEN THOMAS J WATSON SR JOINED WHAT WAS THEN CALLED COMPUTINGTABULATINGRECORDING MADE HIS MOST IMPORTANT TURNAROUND DECISION TO DATE MR GERSTNER DECIDED TO LISTEN AND ACT ON THE RECOMMENDATIONS OF HIS 200 TOP CUSTOMERS RATHER THAN ON THE ADVICE OF HIS INTERNAL MANAGEMENT TEAM HE WALKED AWAY FROM THE TURF WARS OF COMPETING LINES OF HARDWARE SOFTWARE AND CONSULTING SERVICES TO COME DOWN SQUARELY ON THE SIDE OF THE CUSTOMERS WHO REQUESTED CONTINUITY IN THE RELATIONSHIPS THEY HAVE BUILT WITH THE COMPANY OVER THE YEARS RECOGNIZING AND PROTECTING THAT INTANGIBLE ASSET HAS BEEN IDENTIFIED BY MR GERSTNER AS A KEY FOCUS OF HIS SALES ORGANIZATION CONTRARY TO THE STANDARD TURNAROUND STRATEGY OF REORGANIZING EVERYTHING IN THE HOPE OF GETTING SOMETHING TO WORK RIGHT MR GERSTNER'S MEASURED APPROACH OF REBUILDING IBM'S STRENGTH IN SALES IS AN ENCOURAGING SIGN THAT BIG BLUE MAY BE ON THE COMEBACK TRAIL FEW MANAGERS REALIZE THAT 80 OF THE SALES PROCESS IS CONTROLLED BY SPECIFIC KNOWLEDGE OF A CUSTOMER'S BUSINESS APPLICATIONS EXPERTS AND INDUSTRY SPECIALISTS ARE SECONDARY TO THE RELATIONSHIP OF TRUST BUILT BY A SKILLED PROFESSIONAL SALESMAN WITH HIS CUSTOMER AND THE PROPER FUNCTION OF A SUCCESSFUL SALES ORGANIZATION IS TO PROVIDE THE SALES REPRESENTATIVE WITH THE GOODS AND SERVICES NECESSARY TO HELP HIS CUSTOMERS DO BUSINESS MORE EFFECTIVELY WHEN JOHN PATTERSON BUILT NATIONAL CASH REGISTER'S INTERNATIONAL TOPCLASS SALES TEAM HE DID IT BY GOING INTO THE FIELD AND ASKING CUSTOMERS WHAT CHALLENGES THEY WERE FACING IN HANDLING FUNDS AND EMPLOYEES AT RETAIL TO ENCOURAGE BUSINESS OWNERS TO CONFIDE IN HIS SALESMEN HE REQUIRED HIS REPRESENTATIVES TO DRESS AS PROFESSIONAL BUSINESS PEOPLE RATHER THAN IN THE MORE CASUAL ATTIRE POPULAR IN HIS DAY THE WHITE SHIRTS THAT WATSON TOOK WITH HIM FROM NCR WHEN HE LEFT HIS BOSS PATTERSON BEHIND WEREN'T THE ONLY CHANGES THAT HE IMPLANTED AT IBM THE CONCEPT OF A PROTECTED GEOGRAPHIC TERRITORY WAS ALSO AN NCR INNOVATION IT GAVE THE COMPANY ONE FACE TO THE CUSTOMER AND FOSTERED PROFESSIONAL PARTNERSHIPS BUSINESSES HAVE CHANGED DRAMATICALLY OVER THE YEARS BUT THE NEEDS AND EXPECTATIONS OF CUSTOMERS HAVEN'T THE CONCEPT THAT PATTERSON PASSED ON TO WATSON IN THE EARLY DAYS OF THIS CENTURY BUILDING CONTINUITY AND RELATIONSHIPS OF TRUST IS EXACTLY WHAT MR GERSTNER'S CUSTOMERS IN THE 1990S HAVE ASKED HIM TO PROTECT IBM'S NEXT MOVE MUST BE TO DETERMINE WHAT PRODUCTS AND SERVICES IT CAN MOST PROFITABLY SELL BECAUSE OF ITS STRONG CUSTOMER BASE IF THE INDUSTRY IS MOVING RAPIDLY FROM HARDWARE TO SOFTWARE TO CONSULTING SERVICES SO BE IT HOWEVER IF IBM'S PRODUCT OFFERINGS ARE TOO COMPLEX FOR ITS SALES TEAM OR CUSTOMERS TO UNDERSTAND PERHAPS THE PROBLEM IS WITH ITS PRODUCTS RATHER THAN ITS SALES TEAM THE TREND TOWARD SELLING CONSULTING SERVICES HAS NOT BEEN A DIFFICULT SKILL FOR IBM SALES PEOPLE TO MASTER BUT HAVING SALES REPRESENTATIVES BILL THEIR HOURS TO A CLIENT MEANS THAT YOU WILL HAVE NEITHER FULLTIME SALES PROFESSIONALS NOR FULLTIME PROFESSIONAL CONSULTANTS COMBINING THOSE TWO FUNCTIONS DOES NOT BUILD ON IBM'S STRENGTHS IBM HAS THE CONSULTING SOFTWARE AND EVEN HARDWARE RESOURCES IN HOUSE TO COMPETE SUCCESSFULLY IN TODAY'S MARKETPLACE SELLING SHOULD CONTINUE AS A SEPARATE DISCIPLINE UNFORTUNATELY IN THE PAST IBM HAS ORGANIZED ITSELF OUT OF EMERGING MARKETS IN THE 1970S WHEN CUSTOMERS WANTED COMPUTER SCREENS ON TOP OF THEIR SELECTRIC TYPEWRITERS IBM COULDN'T RESPOND BECAUSE ITS OFFICE PRODUCTS GROUP WAS CONSTRAINED FROM DEVELOPING A PRODUCT WITH A COMPUTER SCREEN THAT COMPETED WITH IBM'S OWN COMPUTER GROUP WANG ON THE OTHER HAND WAS RIGHT IN TUNE WITH CUSTOMER NEEDS AND HAD NO TROUBLE COMBINING THE TECHNOLOGIES OF THE TYPEWRITER AND THE COMPUTER TO PRODUCE THE WANG WRITER BY THE TIME IBM COMBINED ITS TWO DIVISIONS TO PRODUCE A SIMILAR PRODUCT THE MARKET HAD ALREADY BEEN WIDELY PENETRATED BY COMPETITORS IN THE 1980S IBM ORGANIZED ITS SALES TEAM TO GET BIGGER AND BIGGER HARDWARE ACCOUNTS ELEPHANT HUNTING IN DOING SO IT WALKED AWAY FROM ITS SMALLER CUSTOMERS AT JUST THE TIME WHEN THEY WERE LOOKING FOR THE MINICOMPUTERS AND WORKSTATIONS THEY NEEDED TO STAY COMPETITIVE IN THE INFORMATION AGE AFTER THESE MISSTEPS MR GERSTNER IS ACTING QUICKLY TO TURN UP THE VOLUME ON CUSTOMER DESIRES AND COMPLAINTS LISTENING MORE CAREFULLY TO CUSTOMERS WILL NOT ONLY HELP IBM IN REORGANIZING ITS SALES FORCE IT WILL ALSO HELP IT BRING THE RIGHT PRODUCTS AND SERVICES TO MARKET OF COURSE THIS IS NOT EASY THE FACT THAT MANY GROUPS WITHIN IBM WOULD LIKE TO HAVE THEIR OWN INDEPENDENT SALES STAFFS IS AN INDICATION THAT THE COMPANY HAS NOT REIDENTIFIED ITS CORE BUSINESS AND ITS APPROPRIATE SALES FOCUS WHEN A COMPANY ENJOYS LONGTERM SALES SUCCESS PRODUCTS AND SERVICES SUPPLEMENTAL TO THE BASE PRODUCT FLANKER PRODUCTS SEEM TO GROW GEOMETRICALLY SORTING OUT THE APPARENT FUTURE WINNERS IS A DAUNTING TASK NEVERTHELESS BUILDING ON OR REBUILDING IBM'S TRADITIONAL SALES STRENGTH IS A GREAT COMEBACK STRATEGY IBM WAS ONCE SO TUNED INTO ITS CUSTOMERS THAT IT KNEW BEFORE THEY DID WHAT THEY NEEDED NEXT IT HAD NO PEER IN QUALITY AND CUSTOMER RESPONSIVENESS HAVING SUCCEEDED AT ALL THIS BEFORE INDICATES THAT IT COULD SUCCEED WITH THE SAME STRATEGY AGAIN IT'S A GOOD THING THAT MR GERSTNER DOESN'T KNOW MUCH ABOUT THE COMPUTER BUSINESS OTHERWISE THAT EXPERTISE MIGHT BLIND HIM TO THE MORE FUNDAMENTAL BASICS TO WHICH HE SEEMS COMMITTED 9307120011 930712 MILITANT ISLAM'S THREAT TO AFRICA BY BEN BUSHAIJA THE RECENT ARREST OF ISLAMIC FUNDAMENTALISTS FOR PLOTTING TO BOMB TARGETS IN AND AROUND NEW YORK CITY WAS NO DOUBT VIEWED WITH A SENSE OF IRONY AND RELIEF BY AFRICA'S SUBSAHARAN NATIONS FOR ALMOST A DECADE THEY HAVE BEEN WATCHING STATESPONSORED MURDER AND PILLAGE IN SUDAN THE WEST HAS KEPT MUM WHILE AN ESTIMATED ONE MILLION SUDANESE NONMUSLIMS HAVE PERISHED UNDER THE ASSAULT OF AN ISLAMIC FUNDAMENTALIST GOVERNMENT IN KHARTOUM ONE EFFECT OF THE NEW YORK ARRESTS WILL BE TO HIGHLIGHT THE THREAT OF ISLAMIC FUNDAMENTALISM IN AFRICA THE THREAT HAS BEEN GAINING STEADILY THERE IN THE PAST FEW YEARS AGGRAVATING THE CONTINENT'S DIRE HARDSHIPS OF WAR HUNGER AND POVERTY IN PARTICULAR THE ARRESTS MAY CALL ATTENTION TO SUDAN'S GHASTLY CARNAGE FIVE OF THE EIGHT NEW YORK TERRORIST SUSPECTS ARE RECENT IMMIGRANTS FROM SUDAN A COUNTRY THAT IS RULED BY A SMALL CLIQUE OF MILITARY MEN FROM ITS ARAB NORTH THE GOVERNMENT HAS BEEN USING STRICT ISLAMIC RULE TO GOVERN THE COUNTRY'S 25 MILLION PEOPLE BUT A QUARTER OF SUDAN'S POPULATION IS CHRISTIAN AND ANIMIST THEY ARE MOSTLY FROM THE COUNTRY'S SOUTHERN AFRICAN TRIBES AND HAVE BEEN BITTERLY FIGHTING AGAINST THE IMPOSITION OF ISLAMIC LAW SUDAN IS A COUNTRY LIKE MUCH OF AFRICA THAT HAS EXPERIENCED ECONOMIC AND POLITICAL TURMOIL SINCE ITS INDEPENDENCE MORE THAN 30 YEARS AGO BUT RECENT YEARS HAVE BEEN ESPECIALLY BAD IN 1989 LT GEN OMAR HASSAN AHMED BASHIR A MUSLIM FUNDAMENTALIST OVERTHREW SUDAN'S CIVILIAN GOVERNMENT IMMEDIATELY AFTER HE INSTALLED ISLAMIC LAW THROUGHOUT THE COUNTRY HEIGHTENING AN ALREADY BITTER WAR BETWEEN THE COUNTRY'S NORTH AND SOUTH THE SOUTHERN GROUPS LARGELY FRACTIOUS CALLED FOR A DEMOCRATIC AND RELIGIOUSLY NONCONFORMIST GOVERNMENT THE BASHIR REGIME DEMURRED THE UNEASINESS OF THE SOUTHERNERS ERUPTED IN A REBELLION LAST YEAR AFTER OTHER AFRICAN COUNTRIES FAILED TO MEDIATE A COMPROMISE MR BASHIR PROCLAIMED A JIHAD AN ISLAMIC HOLY WAR WHOLE VILLAGES IN THE SOUTH WERE BURNED DOWN STARVATION BECAME RAMPANT RELIEF AGENCIES WERE BARRED FROM DISTRIBUTING FOOD TO GOVERNMENTCONTROLLED REFUGEE CAMPS HUNDREDS WERE HERDED INTO PREVENTIVE CAMPS THOUSANDS OF REFUGEES FLOODED INTO THE NEIGHBORING COUNTRIES OF UGANDA AND ZAIRE MANY INTERNATIONAL HUMANRIGHTS ORGANIZATIONS DECRIED THE FEROCITY OF THE GOVERNMENT'S TREATMENT OF THE SOUTHERNERS RELIEF OFFICIALS REPORTED THAT CONDITIONS OF HUMAN SUFFERING RIVALED THOSE IN SOMALIA IN FEBRUARY AMNESTY INTERNATIONAL ACCUSED SUDAN'S GOVERNMENT OF PRACTICING ETHNIC CLEANSING AGAINST THE PEOPLE OF THE SOUTH THE US AMBASSADOR TO SUDAN DONALD PETERSON HAS CALLED FOR THE UNITED NATIONS TO ESTABLISH SAFE HAVENS OR POPULATIONS CENTERS FOR THE NONMUSLIM POPULATION THERE TO BE FAIR THE SUDANESE GOVERNMENT HAD NOT YET BEEN OFFICIALLY IMPLICATED IN THE ATTEMPTED BOMBINGS AND PLANNED ASSASSINATIONS IN THE US BUT PRIVATELY US GOVERNMENT OFFICIALS HAVE EXPRESSED CONCERN ABOUT THE CLOSE RELATIONSHIP BETWEEN SUDAN AND ARAB ISLAMIC FUNDAMENTALIST GROUPS THAT IN THE PAST HAVE BEEN IMPLICATED IN TERRORIST ACTIVITIES AND ACCORDING TO PRESS REPORTS THE FBI IS INVESTIGATING WHETHER TWO MEN FROM SUDAN'S MISSION TO THE UN WERE INVOLVED IN THE PLOTS A CONNECTION DENIED BY THE SUDANESE MISSION IN ANY CASE THE NEW YORK BOMB PLOTS HAVE BROUGHT HOME TO AMERICANS THE DANGER OF MILITANT ISLAM AND ITS INTERNATIONAL DIMENSION PERHAPS AMERICANS WILL FINALLY UNDERSTAND THAT FOR AFRICAN COUNTRIES ALREADY BURDENED BY FAMINE POVERTY WAR AND AUTOCRATIC GOVERNMENTSSTEMMING THE TIDE OF ISLAMIC FUNDAMENTALISM IS AS URGENT A NEED AS FOOD PEACE AND DEMOCRACY MR BUSHAIJA WHO WAS BORN IN UGANDA AND LIVED FOR MANY YEARS IN NORTH AFRICA WORKS FOR THE APDOW JONES NEWS SERVICE IN NEW YORK 9307120010 930712 MARKETING BRIEF NTN COMMUNICATIONS INC SECURITIESLAW VIOLATIONS ALLEGED IN SHAREHOLDER SUIT NTN COMMUNICATIONS INC SAID A SHAREHOLDER LAWSUIT ALLEGING SECURITIESLAW VIOLATIONS HAS BEEN FILED AGAINST THE COMPANY AND THREE OF ITS DIRECTORS THE SUIT SEEKING CLASSACTION STATUS WAS FILED IN FEDERAL COURT IN SAN DIEGO ON JUNE 28 IT CLAIMS THAT DIRECTORS MADE FALSE STATEMENTS ABOUT AN ANTICIPATED CONTRACT IN AN EFFORT TO DRIVE UP NTN'S STOCK PRICE NTN A CARLSBAD CALIF PRODUCER AND BROADCASTER OF INTERACTIVE TELEVISION GAME SHOWS AND EDUCATIONAL PROGRAMS SAID IT BELIEVES THE COMPLAINT TO BE WITHOUT MERIT ADDING THAT IT INTENDS TO CONTEST THE LITIGATION VIGOROUSLY IN THE COMPLAINT THE PLAINTIFFS NAMED NTN AS WELL AS THREE DIRECTORS DONALD C KLOSTERMAN NTN'S CHAIRMAN PATRICK J DOWNS ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER AND DANIEL C DOWNS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER 9307120009 930712 WHO'S NEWS GRAND METROPOLITAN PLC GRAND METROPOLITAN PLC LONDON STEVE GOLDSTEIN 38 YEARS OLD WAS NAMED VICE PRESIDENT OF PUBLIC RELATIONS AND EVENT MARKETING A NEW POSITION AT HUEBLEIN INC A DISTILLED SPIRITS AND WINE PRODUCER OF THIS CONSUMER PRODUCTS COMPANY MR GOLDSTEIN HAD BEEN PUBLIC RELATIONS DIRECTOR OF HUEBLEIN'S RALPH A HART MARKETING DIVISION AND WILL CONTINUE WITH THOSE RESPONSIBILITIES HUEBLEIN PRODUCES SMIRNOFF VODKA JOSE CUERVO TEQUILA AND CHRISTIAN BROTHERS BRANDY 9307120008 930712 SECURITIES FIRMS BOOST BIDS FOR BROKERS BUT RICH LURES CAUSE WORRY OVER COST OF SEDUCTION BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SECURITIES FIRMS ARE BIDDING UP FOR STOCK BROKERS WAY UP EAGER TO IMPROVE THEIR MARKET SHARE AND DELIVER A STEADY STREAM OF COMMISSION REVENUE RETAILORIENTED SHOPS ARE WAVING INFLATED COMPENSATION PACKAGES AT BROKERS WHO HAVE PROVED THEY CAN PRODUCE THE PRICE OF POKER HAS GONE UP SAID LARRY NORTON EXECUTIVE VICE PRESIDENT OF PRUDENTIAL SECURITIES INC'S RETAIL OPERATIONS BUT THIS BONANZA FOR SUCCESSFUL PRODUCERS COMES AT A COST MANY ON WALL STREET LAMENT THE LAPSE OF BROKER LOYALTY AND WORRY WHETHER THE BUSINESS CAN AFFORD THIS SEDUCTION IT WAS LUDICROUS BEFORE AND NOW IT'S INSANE SAID JOSEPH PLUMERI PRESIDENT OF SMITH BARNEY SHEARSON INC EVERYBODY'S MOVING IN FOR THE KILL THE HUNT BEGAN ABOUT TWO YEARS AGO WITH LOWER INTEREST RATES AND THE REJUVENATED APPETITE OF INDIVIDUAL INVESTORS FOR STOCKS BONDS AND MUTUAL FUNDS WALL STREET FOUND THAT MONEY THAT ONCE RESIDED IN BANKS SUDDENLY WAS AVAILABLE TO GENERATE COMMISSIONS SO IT SET OUT TO ADD SALESPEOPLE CAPABLE OF BRINGING THAT MONEY HOME BEFORE THE 1987 CRASH THERE WERE NEARLY 97000 BROKERS AT NEW YORK STOCK EXCHANGE MEMBER FIRMS THAT FIGURE FELL TO 74000 AT THE END OF 1990 ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP THE NUMBER CLIMBED BACK TO ALMOST 88000 IN MARCH 1993 IN THAT MONTH PRIMERICA CORP'S DECISION TO MERGE ITS SMITH BARNEY HARRIS UPHAM & CO UNIT WITH AMERICAN EXPRESS COS' SHEARSON LEHMAN BROTHERS INC BROKERAGE UNIT MEANT UNCERTAINTY TO THOUSANDS OF BROKERS AT BOTH FIRMS KEMPER CORP'S DESIRE IN THE SPRING TO DISPOSE OF ITS SECURITIES UNIT KEPT THOUSANDS MORE LONGING FOR STABILITY WITH SO MANY BROKERS IN PLAY AND SO MANY COMMISSIONS IN THE BALANCE THE STAKES HAVE BEEN RISING FOR BIG PRODUCERS DEPENDING ON THE FIRM AND THE BROKER PRODUCERS ARE RECEIVING UPFRONT FORGIVABLE LOANS OF 40 TO 50 OF THEIR TRAILING 12 MONTHS' GROSS COMMISSIONS THAT'S UP FROM ABOUT 30 TO 40 BEFORE DEMAND EXPLODED FIRMS ARE ALSO OFFERING ACCELERATED PAYOUTS A WRINKLE THAT GIVES BROKERS HIGHER PAYOUTS AS MUCH AS 50 OF GROSS COMMISSIONS IN THEIR FIRST 12 TO 24 MONTHS AT A NEW JOB THERE ARE ALSO BACKEND BONUSES OFFERING ANOTHER 5 OR 10 PAYOUT IF THE BROKER GENERATES 75 TO 95 OF TRAILING 12 MONTHS' COMMISSIONS IN HIS FIRST YEAR AT THE NEW FIRM I'VE NEVER HEARD OF THE TYPE OF DEALS WE'RE HEARING TODAY SAID PRUDENTIAL'S MR NORTON A 25YEAR VETERAN OF THE BROKERAGE BUSINESS TO GET AN IDEA OF HOW MUCH IS AT STAKE CONSIDER A BROKER AT A MAJOR FIRM WHO IS GENERATING THE INDUSTRY AVERAGE OF 300000 IN ANNUAL GROSS COMMISSIONS HIS PAYOUT RATE IS ABOUT 40 ALSO A ROUGH INDUSTRY AVERAGE YIELDING ANNUAL COMPENSATION OF 120000 IF A RIVAL FIRM OFFERED HIM A 40 FORGIVABLE LOAN HE WOULD STAND TO RECEIVE 120000 UPFRONT IN HIS FIRST YEAR AT THE NEW FIRM IF THE BROKER GENERATED 75 OF HIS TRAILING 12 MONTHS' GROSS COMMISSIONS OR 225000 HE WOULD GRAB ANOTHER 112500 AT THE ACCELERATED 50 PAYOUT RATE A MODEST BACKEND BONUS OF 5 ADDS ANOTHER 11250 GIVING THE BROKER A TOTAL OF 243750 FOR HIS FIRST YEAR MORE THAN DOUBLE HIS PREVIOUS 12 MONTHS' PACKAGE ALL THE BIG FIRMS ARE GUILTY OF THIS EXCESS INDUSTRY EXECUTIVES SAID BUT THE ONE BLAMED THE MOST RIGHTLY OR WRONGLY IS PAINEWEBBER INC THE PAINEWEBBER GROUP INC UNIT IS ON RECORD AS SAYING THAT IT INTENDS TO EXPAND ITS 5200MEMBER RETAILBROKER CORPS BY 800 TO 1200 DURING THE NEXT 4 1/2 YEARS DONALD MARRON PAINEWEBBER GROUP CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS SAID THE FIRM IS TRAINING ABOUT 400 NEW BROKERS A YEAR BUT WOULD ALSO RECRUIT ESTABLISHED BROKERS TO REACH ITS GOAL WE'RE NOT AGGRESSIVE SAID JOSEPH GRANO HEAD OF PAINEWEBBER'S RETAIL OPERATIONS WE'RE SUCCESSFUL BECAUSE PEOPLE WANT TO WORK HERE WHAT YOU'RE HEARING IS GROUSING FROM PEOPLE WHO ARE JEALOUS OF OUR SUCCESS MERRILL LYNCH & CO THE NATION'S LARGEST SECURITIES FIRM IS ALSO A PARTICIPANT IN THE BROKERRECRUITING GAME HOWEVER THE FIRM WITH WALL STREET'S PREMIER BROKERTRAINING PROGRAM TENDS TO BE LESS AGGRESSIVE THAN ITS RIVALS IN OFFERING UPFRONT MONEY MERRILL'S BROKER TURNOVER RATE IS BELIEVED TO BE LESS THAN HALF THE INDUSTRY'S 15 AVERAGE IT ALSO DOESN'T HURT THAT MERRILL OFFERS A 100000 BONUS TO BROKERS WITH NO COMPLIANCE VIOLATIONS WHO STAY AT LEAST 10 YEARS SOME PRODUCERS AT FIRMS WHERE UNCERTAINTY REIGNS SMITH BARNEY SHEARSON AND KEMPER SECURITIES FOR EXAMPLE FIND THEMSELVES THE OBJECTS OF DESIRE AND INCENTIVE PACKAGES MAKING SMITH BARNEY SHEARSON'S 11000 BROKERS MORE VULNERABLE IS THE FIRM'S REFUSAL TO PAY FINANCIAL INDUCEMENTS TO HOLD PRODUCERS A COMMON TACTIC FOR FIRMS UNDERGOING MAJOR CHANGES AS WITH SMITH BARNEY SHEARSON EMBATTLED KEMPER SECURITIES ISN'T OFFERING FINANCIAL INDUCEMENTS TO KEEP BROKERS INSTEAD IT PLANS TO OFFER EQUITY PARTICIPATION IN THE FIRM WHAT AMAZES MANY OBSERVERS IS HOW FIRMS CAN AFFORD TO SHOVEL THE FINANCIAL PERQUISITES TO RECRUITED BROKERS KNOWING THEY MAY NEVER SEE A RETURN ON THAT MONEY ACCORDING TO STEPHEN KENNARD OPPENHEIMER & CO EXECUTIVE VICE PRESIDENT FOR RETAIL SALES IF A FIRM OFFERS UPFRONT MONEY AND AN ACCELERATED BONUS TO A BROKER GENERATING 300000 IN ANNUAL GROSS COMMISSIONS IT COULD TAKE AS LONG AS SIX YEARS FOR THE FIRM TO MAKE ANY MONEY ON THE BROKER MOST BROKERS CLAIM HOWEVER THEY HAVE NO INTEREST IN JOBHOPPING GOOD BROKERS DON'T JUST JUMP TO GRAB A CHECK SAID A KEMPER BROKER FROM WASHINGTON STATE HE ALSO DOESN'T WANT TO PUT CLIENTS THROUGH THE HASSLE OF CHANGING FIRMS 9307120007 930712 LEISURE & ARTS JAZZ IMPRESARIO GEORGE WEIN BY JOHN MCDONOUGH NEW YORK IN JULY 1954 A COOL COLLEGIATELOOKING GERRY MULLIGAN PLAYED THE OPENING NIGHT OF THE FIRST NEWPORT JAZZ FESTIVAL LAST MONTH A DISTINGUISHED PROFESSORIALLOOKING MULLIGAN OPENED THE NEW YORK JVC JAZZ FESTIVAL NEWPORT'S LINEAL DESCENDANT IN 1954 HE WAS A NEW STAR AMONG A GENERATION OF BRIGHT YOUNG MODERNISTS THAT INCLUDED MILES DAVIS STAN GETZ ZOOT SIMS AND DIZZY GILLESPIE LAST MONTH HE WAS A LONE SURVIVOR PLAYING PIECES DEDICATED TO THEIR MEMORY OVER THE YEARS THE NEWPORT/JVC FESTIVALS HAVE REGULARLY TAKEN THE MUSIC'S TEMPERATURE AND DIAGNOSED ITS SYMPTOMS OF EVOLUTION WHICH HAVE RANGED FROM LOWGRADE TO TRAUMATIC AND LATELY IT HAS BEEN OFFERING FREQUENT REMINDERS OF TWO THINGS AS THE SONG SAYS THINGS AIN'T WHAT THEY USED TO BE AND AS THE OTHER SONG SAYS JAZZ IS GETTING SENTIMENTAL OVER ITSELF NO ONE PROBABLY UNDERSTANDS THIS MORE THAN IMPRESARIO GEORGE WEIN WHO PULLED THE ORIGINAL NEWPORT FESTIVAL TOGETHER AND HAS REMAINED ITS MAJORDOMO EVER SINCE LAST MONTH HE WAS CELEBRATED AT THE WHITE HOUSE ON THE OCCASION OF NEWPORT'S 40TH ANNIVERSARY BY MY CALCULATOR 1954 FROM 1993 EQUALS 39 GUESTS WERE TREATED TO A LIVELY MINIJAZZ FEST ON THE SOUTH LAWN COPRODUCED BY WEIN AND THE THELONIOUS MONK INSTITUTE WHICH ENDED WITH ILLINOIS JACQUET HANDING THE PRESIDENT A TENOR SAX THE EVENING WAS TAPED BY WETA AND WILL BE ON PBS'S IN PERFORMANCE AT THE WHITE HOUSE ON SEPT 12 THIS WAS A MEANINGFUL SIGN BUT SO WAS THE DEATH OF GILLESPIE THIS YEAR JAZZ NOW FINDS ITSELF FACING A FUNDAMENTAL PROBLEM OF MORTALITY THIS WOULDN'T BE SO VEXING IF THE '60S AND '70S HAD PRODUCED A GENERATION OF HEADLINERS ABLE TO BUILD A LARGE ENOUGH PUBLIC TO CARRY THE MUSIC FORWARD BUT THE DEFINING PERFORMERS OF THOSE DECADES EITHER CONSTRICTED THE JAZZ AUDIENCE WITH DIFFICULT AND INCONCLUSIVE EXPERIMENTATION OR BYPASSED IT WITH FUSION THIS LEFT THE VITAL CENTER DANGEROUSLY VACANT THE RESULT TODAY THE MOST WIDELY KNOWN JAZZ ARTISTS ARE EITHER OVER 60 MULLIGAN OSCAR PETERSON SONNY ROLLINS MILT JACKSON BENNY CARTER JACQUET LIONEL HAMPTON MAX ROACH GEORGE SHEARING OR UNDER 32 WYNTON AND BRANFORD MARSALIS TERENCE BLANCHARD ROY HARGROVE SO WHAT'S AN IMPRESARIO TO DO AS THE BASIES ELLINGTONS AND COLTRANES HAVE DIED OFF WEIN HAS SHREWDLY MANAGED TO KEEP THEIR NAMES ON THE MARQUEE WITH TRIBUTE CONCERTS OF THEIR MUSIC AND THAT OF OTHERS AT LEAST FIVE OF THE 17 MAJOR EVENTS AT THIS YEAR'S JVC FESTIVAL WERE DEVOTED TO SUCH DEAD BLACK MALES AS CHARLIE PARKER THELONIOUS MONK AND ART BLAKEY BUT THEY GAVE BEWILDERED AUDIENCES A COMFORTING POINT OF REFERENCE AND THE PERFORMANCES REMAINED CREATIVE THOUGH NOT INNOVATIVE FOR MOST THAT'S A WINWIN BARGAIN THIS YEAR WEIN HAD THE AUDACITY TO PAY TRIBUTE TO HIS OWN FAVORITE JAZZ GIANT HIMSELF AFTER 45 YEARS GEORGE WEIN AND THE NEWPORT ALLSTARS WAS NOT ENTIRELY A PRODUCER'S EGO TRIP WEIN HAS PLAYED THE IMPRESARIO FOR SO LONG PEOPLE OFTEN BLINK IN DISBELIEF WHEN HE SITS DOWN AT THE KEYBOARD AND PLAYS BETTER PIANO THAN SOME OF THE FAMOUS MUSICIANS HE'S HIRED THERE ARE JAZZ CRITICS WHO WORRY ABOUT ALL THIS DOTING ON THE PAST PRESUMABLY FOR THE SAME GOOD REASONS CLASSICAL CRITICS FRET OVER THE TENDENCY OF SYMPHONIES TO DWELL IN THE 19TH CENTURY BUT IF THERE ARE PARALLELS THERE IS AT LEAST ONE MAJOR DIFFERENCE THE JAZZ REPERTOIRE RARELY COMMITS A MUSICIAN TO MORE THAN 32 BARS AFTER THAT HE'S ON HIS OWN MAYBE FOR THIS REASON THE JAZZ COMPOSER HAS BECOME AN INCREASINGLY USEFUL HOOK ON WHICH TO HANG A CONCERT CONCEPT IT'S IN THE NATURE OF MOST MUSICIANS TO COMPOSE WHICH IS WHY JAZZ IS RICH IN ITS OWN HOMEGROWN REPERTOIRE BUT FEW OF THESE PIECES EVER CROSS OVER TO BECOME POPULAR STANDARDS ONLY DUKE ELLINGTON AMONG THE MAJOR JAZZ FIGURES PRODUCED A BODY OF STANDARDS COMPARABLE TO SAY GERSHWIN OR KERN THIS IS BECAUSE MUSICIANS TEND TO WRITE MUSIC NOT SONGS THEIR MELODIES ARE INSTRUMENTAL IN NATURE AND REVEL IN SOPHISTICATED INTRIGUES AND OFTEN QUIRKY DISSONANCES THE SORTS OF THINGS THAT SCARE OFF MOST SINGERS WHEN THERE IS A CROSS OVER IT'S USUALLY A LONG EVOLUTIONARY PROCESS A PERFECT EXAMPLE IS ELLINGTON'S LONGTIME COLLABORATOR BILLY STRAYHORN WHOSE LUSH LIFE LANGUISHED FOR 10 YEARS AS AN INSTRUMENTAL THEN WORKED ITS WAY QUIETLY INTO THE CABARET REPERTOIRE AFTER STRAYHORN PROVIDED A LYRIC AND WHAT A LYRIC BUT ONLY IN THE PAST DECADE OR SO ESPECIALLY AFTER A BIG PUSH FROM LINDA RONSTADT HAS IT ENTERED THE SANCTUM OF THE CLASSIC AMERICAN POPULAR SONG LAST MONTH WEIN DEVOTED AN EVENING AT AVERY FISHER HALL TO STRAYHORN'S MUSIC A STILL CHARISMATIC LENA HORNE BOBBY SHORT WARREN VACHE HOWARD ALDEN AND THE ELLINGTON BAND CONDUCTED BY HIS SON MERCER PERFORMED STRAYHORN'S WORKS BUT THE MOST INTERESTING MOMENTS CAME FROM TENOR SAXOPHONIST JOE HENDERSON A JOURNEYMAN PLAYER WHOSE CAREER SEEMED SUDDENLY REBORN LAST YEAR WHEN HE CAME OUT WITH AN ALBUM CALLED LUSH LIFE THE MUSIC OF BILLY STRAYHORN VERVE THE HENDERSONSTRAYHORN PHENOMENON DEMONSTRATED WHAT THE CLASSICAL WORLD HAS KNOWN FOREVER CONDUCTORS MAY COME AND GO BUT BEETHOVEN IS FOREVER AS JAZZ PAUSES TO SURVEY ITS PAST IT IS DISCOVERING WITH INCREASING FREQUENCY THE WONDERS OF ITS COMPOSERS STRAYHORN CHARLIE MINGUS MONK AND COMING TO REALIZE THAT THERE IS AN IMMORTALITY IN A PIECE OF MUSIC THAT SURVIVES BOTH ITS CREATORS AND ITS CUSTODIANS IN JAZZ THE OLD MASTERS MAKE CREATIVE DEMANDS ON THE NEW ONES THAT HAVE NO DIRECT PARALLELS ON THE CONCERT STAGE OR THE THEATER THAT'S WHY WHEN GEORGE WEIN RECENTLY GATHERED 45 YEARS WORTH OF HIS NEWPORT ALLSTARS AT TOWN HALL LAST MONTH THE RESULT WAS NOT A SEANCE BUT A SESSION MR MCDONOUGH IS A MUSIC WRITER IN CHICAGO 9307120006 930712 BUSINESS BRIEF DAEWOO GROUP UNDERSTANDING IS REACHED FOR CAR VENTURE IN RUSSIA SOUTH KOREA'S DAEWOO GROUP SAID IT HAS EXCHANGED A MEMORANDUM OF UNDERSTANDING WITH ELAZ CO OF RUSSIA TO BUILD AN AUTOMOBILE JOINT VENTURE IN TATARSTAN AUTONOMOUS REPUBLIC A PART OF THE RUSSIAN REPUBLIC ACCORDING TO DAEWOO OFFICIALS THE TOTAL INVESTMENT OF THE VENTURE WHICH WILL BE CAPABLE OF PRODUCING 200000 UNITS OF DAEWOO'S COMPACT MODEL LEMANS A YEAR WILL BE BETWEEN 1 BILLION AND 12 BILLION PRODUCTION WILL START TWO YEARS AFTER THE FINAL AGREEMENT FOR WHICH A ROUND OF TALKS IS UNDER WAY DAEWOO OFFICIALS SAID 9307120005 930712 LAB NOTES BY JERRY E BISHOP FISH OIL AND EVENING PRIMROSE OIL HAVE FAILED TO PAN OUT AS MEDICAL TREATMENTS FOR SKIN DISORDERS FISH OIL AND EVENING PRIMROSE OIL ARE EACH RICH IN PARTICULAR KINDS OF FATTY ACIDS THAT MIGHT ACCORDING TO LABORATORY RESEARCH MITIGATE SUCH EXCRUCIATING SKIN DISORDERS AS PSORIASIS ECZEMA AND ATOPIC DERMATITIS AN ITCHY INFLAMMATION OF UNKNOWN CAUSE BUT INITIAL TESTS OF THE SUBSTANCES IN HUMANS PROVED TO BE INCONCLUSIVE NOW LARGER HUMAN TRIALS PROVIDE AN ANSWER IN LEICESTER ENGLAND MORE THAN 100 PATIENTS SUFFERING ATOPIC DERMATITIS WERE ASKED TO TAKE SIX UNIDENTIFIED CAPSULES TWICE A DAY FOR 16 WEEKS SOME GOT CAPSULES OF A COMMERCIALLY SOLD EVENING PRIMROSE OIL OTHERS GOT CAPSULES OF FISH OIL AND STILL OTHERS GOT CAPSULES OF INACTIVE PARAFFIN OR OLIVE OIL THOSE TAKING THE FISH AND PRIMROSE OIL GOT NO BETTER OR WORSE THAN THOSE TAKING THE INACTIVE CAPSULES NO THERAPEUTIC EFFECT WAS DEMONSTRATED THE ENGLISH DERMATOLOGISTS REPORT IN THE MEDICAL JOURNAL LANCET IN ANOTHER STUDY NORWEGIAN DERMATOLOGISTS FAILED TO FIND ANY DIFFERENCE IN THE SEVERITY OF PSORIASIS BETWEEN PATIENTS WHO TOOK CAPSULES OF FISH OIL AND THOSE WHO TOOK CAPSULES OF CORN OIL THE DIETARY APPROACH IS SOMETHING THAT I FIND EVERY PATIENT WITH PSORIASIS HAS CONSIDERED AND THE FAILURE REPORTED HERE WILL BE A DISAPPOINTMENT WRITES UNIVERSITY OF UTAH DERMATOLOGIST GERALD G KRUEGER IN AN EDITORIAL IN THE NEW ENGLAND JOURNAL OF MEDICINE WHICH REPORTED THE RESULTS OF THE NORWEGIAN STUDY MANY PEOPLE MAY HAVE TROUBLE DEFINING THE DIFFERENCE BETWEEN ENVY AND JEALOUSY BUT THEY CAN CERTAINLY FEEL IT TWO PSYCHOLOGISTS SAY IN A LOGICAL WORLD ENVY WHICH OCCURS WHEN SOMEONE DESIRES SOMETHING THAT ANOTHER HAS SHOULD STIR DIFFERENT FEELINGS FROM JEALOUSY WHICH OCCURS WHEN SOMEONE FEARS LOSING THE AFFECTIONS OF ANOTHER TO A RIVAL ACCORDING TO W GERROD PARROTT OF GEORGETOWN UNIVERSITY AND RICHARD H SMITH OF THE UNIVERSITY OF KENTUCKY YET THEY SAY THE WORD JEALOUSY OFTEN IS USED TO MEAN ENVY AND SOME PSYCHOLOGICAL EXPERIMENTS HINT THAT JEALOUSY IS JUST A MORE INTENSE VERSION OF THE SAME FEELINGS THAT OCCUR WITH ENVY TO SEE IF THERE'S ANY REAL DIFFERENCE BETWEEN THE TWO EMOTIONS THE PSYCHOLOGISTS ASKED 156 PSYCHOLOGY STUDENTS TO DESCRIBE THEIR OWN EXPERIENCES WITH ENVY AND JEALOUSY THEY THEN ASKED AN ADDITIONAL 97 STUDENTS TO READ DESCRIPTIONS OF FICTIONAL SITUATIONS AND ANSWER QUESTIONS ABOUT HOW THE PEOPLE INVOLVED FELT THE RESULTS CLEARLY JUSTIFY THE DISTINCTION BETWEEN THESE EMOTIONS THE PSYCHOLOGISTS REPORT IN THE JUNE ISSUE OF THE JOURNAL OF PERSONALITY AND SOCIAL PSYCHOLOGY ENVY THEY FOUND WAS MARKED BY FEELINGS OF INFERIORITY AND LONGING THERE ALSO WAS A FEELING OF EMBARRASSMENT BECAUSE SOCIETY DISAPPROVES OF ENVY IN CONTRAST JEALOUSY WAS CHARACTERIZED BY ANXIETY DISTRUST AND FEAR OF REJECTION OR LOSS BUT WASN'T ASSOCIATED WITH DISAPPROVAL THEY ADDED THAT JEALOUSY TENDS TO PRODUCE JUSTIFIED ANGER WHEREAS ENVY TENDS TO PRODUCE UNSANCTIONED ILL WILL TOWARD ANOTHER PERSON ACCORDING TO THE CANONS OF TRUTH IN STATISTICS CIGARETTE SMOKING INCREASES THE RISK OF SUICIDE AND OF BEING MURDERED BUT DOES IT REALLY THREE MEDICAL RESEARCHERS TOOK JAUNDICED NOTE RECENTLY OF THE PROLIFERATING NUMBER OF POPULATION STUDIES FINDING UNEXPECTED CONNECTIONS BETWEEN BEHAVIOR AND DISEASE STUDIES HAVE FOUND 280 RISK FACTORS FOR CORONARY HEART DISEASE ALONE INCLUDING LOW BIRTH WEIGHT ABSTINENCE FROM ALCOHOL AND POOR DENTAL HEALTH THEY REPORT IN THE LANCET THE THREE THEN APPLIED THE STATISTICAL METHODS USED IN MANY SUCH EPIDEMIOLOGICAL STUDIES TO AN ANALYSIS OF A 12YEAR STUDY OF 361000 MIDDLEAGED AMERICAN MEN FOR HEARTDISEASE RISK FACTORS THE ANALYSIS SHOWED THAT AMONG NONSMOKERS THERE WERE 109 SUICIDES PER 100000 PERSON YEARS THE SUICIDE RATE INCREASED STEADILY WITH THE NUMBER OF CIGARETTES SMOKED REACHING 378 SUICIDES PER 100000 PERSON YEARS FOR PEOPLE WHO SMOKE THREE PACKS OF CIGARETTES A DAY RESEARCHERS OFTEN PUT HEAVY EMPHASIS ON SUCH A DOSERESPONSE RELATION THE RELATIVE RISK OF BEING MURDERED ALSO ROSE WITH SMOKING TWOPACKADAY SMOKERS WERE TWICE AS LIKELY TO BE MURDERED AS NONSMOKERS WERE THE FLAW THE RESEARCHERS SAY IS THE IMPLAUSIBILITY OF SUCH LINKS ALTHOUGH SMOKING COULD REFLECT SOME MENTAL STATE THAT PREDISPOSES A PERSON TO SUICIDE THERE'S NO PLAUSIBLE WAY THAT SMOKING IN AND OF ITSELF COULD CAUSE SUICIDE AND THERE'S NO PLAUSIBLE MECHANISM TO EXPLAIN HOW SMOKING COULD CAUSE PEOPLE TO BE MURDERED IF EPIDEMIOLOGY CAN THROW UP A SPURIOUS INDEPENDENT DOSERESPONSE RELATION FOR SMOKING/SUICIDE HOW MANY MORE SUCH RELATIONS FOR OTHER EXPOSURES AND OTHER DISEASES ARE EQUALLY SPURIOUS PROTECTED ONLY BY THEIR LACK OF OBVIOUS IMPLAUSIBLITY THE TRIO ASKS RHETORICALLY PATIENTS WITH BROKEN BONES CAN NOW SHOWER SWIM AND OTHERWISE GET WET WITHOUT WORRYING ABOUT WATER TRAPPED UNDER THEIR CASTS DAMAGING THEIR SKIN A NEW INNER LINING FOR CASTS DEVELOPED BY THE MAKERS OF THE GORETEX WATERREPELLENT BREATHABLE FABRICS ALLOWS ANY TRAPPED WATER TO EVAPORATE A FOAM EARPLUG THAT EXPANDS AND SETS ON FIRST USE TO FIT THE SHAPE OF A WEARER'S EAR CANAL IS MORE EFFECTIVE THAN ONESIZEFITSMOST EARPLUGS IN PROTECTING WORKERS' HEARING AGAINST FACTORY NOISE SAY THE INVENTORS ENGINEERS JOHN CASALI AND DANIEL MAUNEY OF VIRGINIA TECH UNIVERSITY FRESH BEEF INJECTED WITH CALCIUM CHLORIDE WILL BECOME AS TENDER IN ONE DAY AS BEEF AGED IN THE COOLER FOR ONE TO TWO WEEKS FEDERAL AGRICULTURE RESEARCHERS IN CLAY CENTER NEB REPORT 9307120004 930712 BUSINESS BRIEF AMERICAN EXPLORATION CO EQUITABLE RESOURCES BUYS CERTAIN CANADIAN PROPERTIES AMERICAN EXPLORATION CO COMPLETELY WITHDRAWING FROM CANADIAN OIL AND GAS PRODUCTION SAID IT SOLD CERTAIN PROPERTIES IN ALBERTA FOR 18 MILLION TO EQUITABLE RESOURCES INC EQUITABLE OF PITTSBURGH SAID THE ACQUISITION WILL INCREASE ITS PROVEN RESERVES BY ABOUT 10 OR 68 BILLION CUBIC FEET OF NATURAL GAS CURRENT PRODUCTION FROM THE PROPERTIES IS ABOUT EIGHT MILLION CUBIC FEET A DAY OF GAS EQUITABLE EXPECTS INCREASES IN PRODUCTION OVER THE NEXT SEVERAL YEARS FROM DEVELOPMENT PROGRAMS AMERICAN EXPLORATION HOUSTON FOCUSING ON ITS DOMESTIC RESERVES AND PRODUCTION SAID 12 MILLION OF THE PROCEEDS WILL BE USED TO FURTHER REDUCE LONGTERM DEBT AND THE REST FOR CAPITAL PROJECTS INCLUDING THIS SALE AMERICAN EXPLORATION'S DEBT IS 82 MILLION DOWN FROM 170 MILLION ABOUT THIS TIME IN 1991 AMERICAN RETAINS A 4 ROYALTY INTEREST IN THE PROPERTIES 9307120003 930712 BUSINESS BRIEF SECURIGUARD GROUP PLC BRITISH CONCERN ACCEPTS BID FROM RENTOKIL GROUP PLC UK SECURIGUARD GROUP PLC ACCEPTED A 757 MILLION 1132 MILLION TAKEOVER OFFER FROM RENTOKIL GROUP PLC A BRITISH ENVIRONMENTAL AND BUSINESS SERVICES CONCERN SECURIGUARD WHICH PROVIDES GUARD AND OFFICECLEANING SERVICES ANNOUNCED FRIDAY IT WILL RECOMMEND THAT SHAREHOLDERS ACCEPT THE CASH OFFER OF 345 PENCE 516 A SHARE THE ACCEPTANCE ENDS RENTOKIL'S HOSTILE POSITION TAKEN IN MAY WITH AN ORIGINAL TAKEOVER OFFER OF 592 MILLION RENTOKIL INCREASED THAT OFFER TO 757 MILLION JULY 2 RENTOKIL HAD ACQUIRED A 297 STAKE IN SECURIGUARD SINCE JULY 2 9307120002 930712 LEISURE & ARTS BOOKSHELF THE SOUTH PHILLY BOY WHO WOULD BE MAYOR BY RICHARD AREGOOD FRANK RIZZO WAS ALWAYS IMPORTANT MAYBE MOST OF ALL TO PEOPLE WHO DIDN'T KNOW MUCH ABOUT HIM HE WAS BIG ENOUGH FOR BOTH IDOLATORS AND OPPONENTS TO HANG ALMOST ANYTHING ON A PHILADELPHIAN COULD TRAVEL VIRTUALLY ANYWHERE MENTION WHERE HE WAS FROM AND HEAR DO YOU KNOW FRANK RIZZO RIZZO WAS THE KIND OF MAN FOR WHOM ALL THE CLICHES WERE INVENTED BIGGER THAN LIFE A FORCE OF NATURE AND SO ON BUT HE WAS NOBODY'S SYMBOL NEITHER A BRUTISH CARTOON COP NOR A SAINTLY PROTECTOR OF ALL HUMANITY ALTHOUGH THOSE PERCEPTIONS TOGETHER LIKELY WERE THE MAJORITY VIEW HE FLOURISHED AMONG LIBERALS FOOLISH ENOUGH TO THINK HIM STUPID AND LANGUISHED POLITICALLY BY LISTENING TO TRUE BELIEVERS WHO THOUGHT HIM OMNIPOTENT RIZZO DIED OF A HEART ATTACK RUNNING FOR MAYOR OF PHILADELPHIA SOMETHING HE'D BEEN DOING PRETTY MUCH FULLTIME SINCE THE LATE 1960S HE ROSE FROM THE ROW HOUSES OF ITALIANAMERICAN SOUTH PHILLY A COP WHO WAS THE SON OF A COP TO BECOME THE POLICE COMMISSIONER AND THEN THE MAYOR IN 1971 HE WAS A HIGHSCHOOL DROPOUT WHO DID IT ALL SIMPLY BY INSISTING HE COULD HAVE POLICE STAKED OUT IN FRONT OF YOUR HOUSE AND AT THE SAME TIME VISIT YOUR SICK KID HE MEANT BOTH HE WAS ROUGH AND BLUSTERY AND VERY SMART HE MAY BE THE MOST HILARIOUSLY FOULMOUTHED MAN I EVER MET A CHAIN SMOKER WHO SOMEHOW MANAGED TO AVOID BEING PHOTOGRAPHED SMOKING OR RECORDED TALKING DIRTY HE BRAGGED CONTINUOUSLY BUT FREQUENTLY PULLED OFF THE BOAST AS A DEPUTY POLICE COMMISSIONER HE TOLD POLICE REPORTERS HE'D DETERMINE THE NEXT MAYOR HE DID HE WAS THE MAJOR ISSUE IN A TIGHT RACE SA PAOLANTONIO IN HIS RIZZO THE LAST BIG MAN IN BIG CITY AMERICA CAMINO BOOKS 405 PAGES GIVES YOU PLENTY OF FACTS TO FLESH OUT A PORTRAIT OF THIS AMERICAN ORIGINAL FREQUENTLY FROM THE INSIGHTS OF PEOPLE WHO SCHEMED WITH THE BIG MAN AROUND HIS KITCHEN TABLE SOME OF THE FACTS ARE A TRIFLE ASKEW AND A FEW SOUND AS IF THEY HAVE BEEN FILTERED THROUGH A REPORTER WITH A TOUCHING FAITH IN HUMAN VERACITY BUT IT IS AN IMPRESSIVE PIECE OF WORK FULL OF INSIGHT INTO THE FORCES THAT DROVE RIZZO AND MADE HIM PERFECT FOR HIS TOUGH ROWHOUSE CITY MR PAOLANTONIO'S ACCOUNT OF THE RELATIONSHIP BETWEEN RIZZO AND RICHARD M NIXON IS BY ITSELF WORTH THE 22 THE INTERPLAY OF POWER PUBLIC FEAR AND PUBLIC MONEY THOSE TWO REPRESENTED COULD KEEP DOZENS OF SOCIOLOGISTS BUSY FOR A GENERATION WHICH IS NOT A BAD IDEA THEY ACTUALLY WERE AS CLOSELY ALLIED AS RIZZO HAD BOASTED AND MR PAOLANTONIO GETS IT DOWN IN NAMES AND DATES AND SPECIFIC PLOTS THE DESCRIPTION OF RIZZO DRAGGING HIS PHILADELPHIA REPORTERS ALONG TO THE OVAL OFFICE AND J EDGAR HOOVER'S INNER SANCTUM BRAGGING AS HE WENT IS PRICELESS THE RESULTING FLURRY OF ACTIVITY AS THE NIXON WHITE HOUSE TRIED TO DELIVER WHATEVER RIZZO WANTED FOR HIS CITY IS INCREDIBLE MR PAOLANTONIO IS PARTICULARLY EFFECTIVE IN SHOWING THE POWER OF PUBLIC FEAR AS A POLITICAL WEAPON FOR BOTH MEN RIZZO'S APPEAL WAS ALWAYS THOROUGHLY PERSONAL ONE TO ONE THAT HE MANAGED THIS FEAT WITH AN ENTIRE CITY IS FAIRLY REMARKABLE THAT HE FAILED TO GOVERN SUCCESSFULLY USING THAT TECHNIQUE SHOULD BE NO SURPRISE RIZZO COULD NOT TRANSMUTE EMOTION INTO SOLUTIONS NOBODY COULD BUT HE THOUGHT HE WAS DIFFERENT EXCEPT FOR SOME SUPERHEATED PROSE AND OCCASIONAL LAPSES INTO HAGIOGRAPHY OF VARIOUS FIGURES AT THE PHILADELPHIA INQUIRER MR PAOLANTONIO'S ANALYSIS OF THE RISE AND RERISE OF FRANK RIZZO IS COMPLETE AND INSIGHTFUL MAYBE INQUIRER EDITORIALS WERE QUOTED IN BOARDROOMS ALL OVER THE CITY AND THE SUBURBS BUT FRANK RIZZO WAS IMMUNE TO ANYBODY'S EDITORIALS AND MOST ANYBODY'S BOARDROOMS HIS POWER WAS A VOLATILE MIX OF THE LOVES AND HATES OF ORDINARY PEOPLE RIZZO WAS NO RACIST HE WAS A SCHEMER AND SOMETIMES A BULLY BUT HE WAS ALL MENSCH AND RESPECTED EVEN BY OPPONENTS HE DESERVED THIS HONEST THOROUGH AND FAIR BIOGRAPHY THE LAST TIME I SAW FRANK RIZZO BEFORE LINING UP WITH WHAT SEEMED LIKE THE ENTIRE CITY AT HIS COFFIN A BLACK CAR PULLED UP AT A CENTERCITY CURB RIZZO AND THE USUAL LOYALISTS PILED OUT RICHARD YOU COMMIE ALLITERATIVE EXPLETIVE DELETED HE BELLOWED GENIALLY WRAPPING AN ENORMOUS ARM AROUND ME AFTER A FEW PLEASANTRIES EVERYBODY PILED IN AND DISAPPEARED LEAVING A PALPABLE ENERGY VACUUM HE WASN'T MUCH OF A MAYOR BUT HE WAS REAL AND HE WAS WORKING ON A COMEBACK WHEN HE DIED I WOULD NOT HAVE BET AGAINST HIM BEFORE MR PAOLANTONIO YOU HAD TO HAVE STOOD IN THE SAME ROOM WITH RIZZO TO TRULY UNDERSTAND WHERE HIS APPEAL WASTO FEEL THAT NEARLY VISCERAL POWER HE THREW OFF UNTIL A NOVELIST COMES ALONG TO DO IT BETTER MR PAOLANTONIO HAS BROUGHT HIM TO THE PAGE BETTER THAN I WOULD HAVE IMAGINED POSSIBLE MR AREGOOD IS EDITORIALPAGE EDITOR OF THE PHILADELPHIA DAILY NEWS 9307120001 930712 PEPPERAND SALT AND PLACES BY THE SEA THAT WILL LEAVE THE NEIGHBORS RAVING SHOWING OUR BROOD WAVING A FLY UPON THE WALL A SPIDER NEARBY 9307090200 930709 CANADIAN HOUSING PRICES OTTAWA CANADA'S INDEX OF NEWHOUSE PRICES IN MAY WAS DOWN 04 FROM APRIL BUT UP 12 FROM A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID 9307090199 930709 DIVIDEND NEWS PAYCHEX INC PAYCHEX INC DECLARED A 3FOR2 STOCK SPLIT PAYABLE AUG 26 TO SHARES OF RECORD AUG 2 PAYCHEX OF ROCHESTER NY PROCESSES PAYROLL CHECKS INTERNAL ACCOUNTING RECORDS AND BUSINESS PAYROLL TAX RETURNS 9307090198 930709 INTERNATIONAL JAPAN'S ISHIHARA ONCE SHUNNED IS NOW A MAJOR LDP POINT MAN PARTY TAPS CELEBRITY STATUS NOT HIS NATIONALISTIC AMERICABASHING VIEWS BY JACOB M SCHLESINGER AND YUMIKO ONO STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO FOUR YEARS AGO JAPAN'S LEADERS DISAVOWED SHINTARO ISHIHARA AS AN EMBARRASSING FRINGE FIGURE WHEN HE CREATED A STIR WITH HIS NATIONALISTIC AMERICABASHING BOOK THE JAPAN THAT CAN SAY NO BUT TIMES HAVE CHANGED HE'S FRINGE NO MORE WITH THE RULING LIBERAL DEMOCRATS FACING THEIR TOUGHEST ELECTION EVER THIS MONTH DESPERATE PARTY ELDERS ARE EMBRACING MR ISHIHARA ONE OF JAPAN'S MOST POPULAR POLITICIANS TO PITCH THE PARTY MESSAGE AT VARIOUS TIMES MR ISHIHARA HAS BLAMED USJAPAN TRADE TENSIONS ON US RACISM SUGGESTED JAPAN WITHHOLD MILITARY TECHNOLOGY FROM THE US AND DENIED THAT JAPAN'S INFAMOUS 1937 MASSACRE IN NANJING CHINA EVER OCCURRED NOW HE'S PART OF A HIGHPROFILE TRIO OF LDP MEMBERS OF PARLIAMENT STUMPING THE COUNTRY THAT THE LDP SHOULD PUT THE CONTROVERSIAL MR ISHIHARA OUT AS ITS POINT MAN SHOWS HOW ANXIOUS THE PARTY IS ABOUT THE JULY 18 ELECTION HIT BY REPEATED SCANDALS AND PILLORIED FOR ITS INABILITY TO ENACT POLITICAL REFORM THE LDP'S FORTUNES HAVE PLUMMETED A SANKEI SHIMBUN NEWSPAPER POLL SAYS ONLY 15 OF THE ELECTORATE PLANS TO VOTE FOR THE LDP DOWN FROM 432 THREE YEARS AGO LDP OFFICIALS INSIST THEY ARE TAPPING INTO MR ISHIHARA'S CELEBRITY NOT ADOPTING HIS IDEAS WE'RE NOT TALKING ABOUT POLICIES AN LDP OFFICIAL SAID CONSIDERING THE SITUATION THAT OUR PARTY IS IN WE'RE TRYING TO ALL GET TOGETHER TO SUPPORT THE PARTY AS ONE HE DISMISSED MR ISHIHARA'S NATIONALISTIC POLICIES AS MERE DETAILS INDEED MR ISHIHARA A 60YEAROLD NOVELIST WITH EXTENSIVE SHOWBUSINESS CONNECTIONS IS CHIEFLY POPULAR BECAUSE HE'S GLITZY HE OFTEN CAMPAIGNS WITH A TV STAR OR TWO IN HIS CAR AIDES SAY MR ISHIHARA'S SPEECHES THESE DAYS FOCUS ON REVITALIZING THE LDP NOT ATTACKING THE US BUT AN ISHIHARA SPOKESMAN SAYS THE POLITICIAN ISN'T BACKING DOWN FROM HIS VIEWS THE LDP'S USE OF MR ISHIHARA SHOWS ISHIHARA HAS FORESIGHT IT LOOKS AS THOUGH THE LDP IS GRADUALLY FOLLOWING THE SPOKESMAN ADDS MANY ANALYSTS BELIEVE MR ISHIHARA GIVES VOICE TO BELIEFS THAT MANY JAPANESE HOLD BUT ARE UNWILLING TO ARTICULATE HE IS ACCEPTED AS ONE OF THE FACES OF THE CAMPAIGN IT IS UNDENIABLE THAT REFLECTS A FAIRLY NATIONALISTIC SENTIMENT OUT THERE SAYS TAKASHI INOGUCHI A TOKYO UNIVERSITY POLITICAL SCIENTIST MR INOGUCHI ADDS THAT SUCH FEELINGS HAVE INTENSIFIED SINCE THE CLINTON ADMINISTRATION STARTED MAKING TOUGH TRADE DEMANDS OF JAPAN MR ISHIHARA WHOSE HOME DISTRICT IS IN TOKYO COULDN'T BE REACHED FOR COMMENT THIS WEEK HE WAS TOO BUSY BARNSTORMING SOUTHERN JAPAN AS ONE OF THE THREE ARROWS THE PARTY HAS SHOT ACROSS THE LAND THE OTHER TWO ARE FORMER FINANCE MINISTER RYUTARO HASHIMOTO AND CHIEF CABINET SECRETARY YOHEI KONO IN CONTRAST TO THE PARTY'S STIFF MONOTONOUS LEADERS SUCH AS PRIME MINISTER KIICHI MIYAZAWA THESE THREE MEN CAMPAIGN WITH VERVE MR HASHIMOTO 55 IS CONSIDERED BY JAPANESE TO BE ONE OF THE LDP'S MOST HANDSOME MEMBERS OFTEN TREATED AT CAMPAIGN APPEARANCES LIKE AN IDOL HE RANKS HIGH IN POPULARITY POLLS MR KONO 56 HAS TAKEN ON THE SPIRO AGNEW ROLE IN RECENT WEEKS OF BLASTING THE PARTY'S DEFECTORS BUT IT IS THE CHOICE OF MR ISHIHARA THAT IS THE MOST INTRIGUING HE RECEIVED NATIONAL ATTENTION AS A YOUNG AUTHOR IN THE 1950S AND WON HIS FIRST RACE FOR PARLIAMENT IN 1968 IN A RECORD LANDSLIDE UNTIL NOW HE WAS GENERALLY SHUNNED BY THE ESTABLISHMENT HE FINISHED A DISTANT THIRD IN ONE ATTEMPT TO BECOME PARTY PRESIDENT AND PRIME MINISTER STILL POLITICAL ANALYSTS SAY MR ISHIHARA HAS LONG BEEN POPULAR AMONG WOMEN VOTERS FOR HIS GOOD LOOKS STYLISH ATTIRE AND ATHLETIC FIGURE I'VE SEEN HIM ON TELEVISION AND I LIKE HIM HE LOOKS NICE SAYS AYAKO YAMANAKA A 73YEAROLD SUBURBAN TOKYO HOUSEWIFE IT DOESN'T MATTER WHAT POLICIES HE HAS BECAUSE ALL POLITICIANS SAY MORE OR LESS THE SAME THINGS SHE SAYS BUT OTHERS SAY EVEN MR ISHIHARA CAN'T SAVE HIS STRUGGLING PARTY THE LDP IS JUST DOING THIS FOR SHOW BECAUSE OF THE ELECTION SAYS HARUO ONOSE A 64YEAROLD RETIRED TOKYO WORKER WE'RE NOT GOING TO BE FOOLED BY THINGS LIKE THAT 9307090197 930709 IN THE '90S ALCHEMISTS RECYCLE ABOMBS A MIX OF WITS AND MANURE YIELDS GOLD OF ALL THINGS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL IN JUNE 1990 WORKING IN AN OBSCURE AREA OF THE TEXAS PANHANDLE BEN C ROGERS FOUND GOLD HIS DISCOVERY WAS NOT AS SENSATIONAL AS JAMES W MARSHALL'S WHO TRIGGERED CALIFORNIA'S GOLD RUSH IN 1848 BUT MR ROGERS HAS CAUSED A STIR NONETHELESS BECAUSE HE DUG HIS GOLD OUT OF THE FIRING MECHANISM OF A NUCLEAR WARHEAD NOW HUNDREDS OF US DEPARTMENT OF ENERGY EXPERTS ARE TRYING TO FASHION HIS DISCOVERY INTO A POLICY SYSTEMATIC RECYCLYING IS NOW CONSIDERED ONE OF THE KEYS TO THE RAPID DESTRUCTION OF SOME 20000 SURPLUS ABOMBS WHAT DRIVES THE POLICY IS THE ENERGY DEPARTMENT'S DISCOVERY THAT IN THE ENVIRONMENTALLY CONSCIOUS '90S THE OLD COLD WAR WAY OF DISPOSING OF BOMB PART SMASHING THEM UP AND DUMPING THEM VIOLATES FEDERAL LAWS BOMB MAKERS ARE ALSO FINDING THAT USEFUL THINGS CAN BE MADE FROM OLD NUKES TODAY THERE ARE PEOPLE WALKING DOWN THE STREET WEARING CHAINS MADE FROM GOLD THAT WAS EXTRACTED FROM THE INNARDS OF THE B61 A 30YEAROLD HYDROGEN BOMB NOW ON ITS WAY TO THE KNACKER'S ALUMINUM ENGINE BLOCKS AND BARBECUE COVERS ARE BEING FASHIONED OUT OF OLD BOMBS' STREAMLINED SILVERY CASING AND THIS IS JUST THE BEGINNING WE CALL IT AN ALCHEMIST'S DREAM EXPLAINS TED WHEELIS MANAGER OF A NUCLEAR WEAPONS RECYCLING PROJECT AT SANDIA NATIONAL LABORATORIES IN ALBUQUERQUE NM WHERE UNTIL NOW SOME OF THE NATION'S BEST SCIENTIFIC MINDS HAVE BEEN FOCUSED ON BUILDING NUCLEAR WEAPONS WHAT THEY'RE DISCOVERING NOW IS THAT IT'S NO SNAP TO TAKE THEM APART NUCLEAR WEAPONS ARE AMONG THE MOST WELLMADE OBJECTS OF THE 20TH CENTURY WITH ALMOST UNLIMITED BUDGETS BOMB BUILDERS USED THE BEST MATERIALS HENCE THE GOLD WHICH WAS USED AS WIRING DUE TO ITS SUPERIOR CONDUCTIVITY AND ITS RESISTANCE TO CORROSION THEY USED SILVER PALLADIUM COPPER PLATINUM TANTALUM TITANIUM AND ZIRCONIUM ALL OF WHICH HAVE CONSIDERABLE RECYCLING VALUE BUT AMONG THE 6000 PARTS IN AN ABOMB THE GOODIES ARE INTERMINGLED WITH WHAT MR WHEELIS CALLS THE BADDIES ASBESTOS MERCURY CADMIUM EXPLOSIVES LEAD RADIOACTIVE ISOTOPES MANY CONTAMINATE WASTE TO THE POINT WHERE IT CAN NO LONGER BE TROTTED OUT TO THE DUMP MOREOVER OLDER BOMBS WEREN'T DESIGNED FOR EASE OF DISASSEMBLY MR WHEELIS NOTES WHICH IS AN UNDERSTATEMENT BUILT TO WITHSTAND LIGHTNING FIRES SUBZERO TEMPERATURES ACCIDENTAL DROPPING FROM HIGH ALTITUDES ALMOST EVERY CONCEIVABLE ACCIDENT THE ELECTRONICS IN ABOMBS WERE POTTED OR EMBEDDED IN A ROCKLIKE EPOXY ANY REMAINING VOIDS IN THE BOMB WERE THEN FOAMED OR FILLED WITH A WHITE PLASTIC FOAM THAT HARDENED TO PREVENT ANYTHING FROM SHAKING LOOSE THE BAN ON DUMPING JUNK FROM OLD BOMBS CREATED A LARGE BACKLOG OF BOMB PARTS AT PANTEX THE ENERGY DEPARTMENT'S BOMBASSEMBLY PLANT AT AMARILLO TEXAS THE ORIGINAL TASK GIVEN TO MR ROGERS THE 50YEAROLD ENGINEERTURNEDPROSPECTOR WAS TO SANITIZE A PILE OF FIRE SETS THE ELECTRONICS PACKAGES THAT TRIGGER BOMBS AT PANTEX SECURITY PEOPLE WORRY A GREAT DEAL ABOUT JUNK SPIES COULD GET VALUABLE INFORMATION FROM THE SIZE AND SHAPE OF OLD BOMB PARTS WORKING FROM DRAWINGS MR ROGERS AND HIS HELPERS MADE SURGICAL INCISIONS IN THE EPOXY AND REMOVED THE PARTS THEN THEY SANITIZED THEM BY HAMMERING THEM INTO AN UNRECOGNIZABLE DEBRIS WE JUST NIBBLED AWAY A LITTLE BIT AT A TIME EXPLAINS MR ROGERS WHO EVENTUALLY FOUND THAT BY USING A PRECISE WATERPOWERED SHEARING DEVICE HE COULD GO FISHING FOR GOLD NOW HE HOPES TO SHARE HIS METHOD WITH THE RUSSIANS WHO HAVE AT LEAST 25000 WARHEADS TO DESTROY AND LITTLE IN THE WAY OF CASH TO FINANCE THE PROCESS IN MY OPINION THERE HAS BEEN TOO MUCH FOCUS ON THE PIT' AND NOT ENOUGH ON THE COMPONENT PARTS IN BOMB DESIGNERS' JARGON THE PIT IS THE ROUND BALL OF PLUTONIUM OR HIGHLY ENRICHED URANIUM THAT MAKES THE NUCLEAR EXPLOSION THESE EXOTIC MANMADE METALS CAN BE RECYCLED INTO FUEL FOR CIVILIAN NUCLEAR POWER PLANTS BUT BOTH THE US AND RUSSIA ARE PLANNING TO STORE THEM BECAUSE THERE'S CURRENTLY A GLUT OF NUCLEAR FUEL ON WORLD MARKETS TO PROPERLY RECYCLE THE REST OF THE BOMB MR WHEELIS OF SANDIA SAYS THAT FIRST IT IS NECESSARY TO FIND A WAY TO REMOVE THE PESKY FOAM AND EPOXY IT GETS IN THE WAY OF EVERYTHING AND IT CAN'T BE BURNED BECAUSE THAT RELEASES CARCINOGENS THAT VIOLATE FEDERAL WORKERSAFETY STANDARDS THE SANDIA EXPERTS ARE LOOKING AT A PROCESS THAT BEGINS BY REMOVAL OF THE TOXIC AND EXPLOSIVE PARTS THEN THE REMAINS ARE FED INTO AN OLD FORGE HAMMER THAT POUNDS THEM INTO A MUSH THE MUSH IS THEN FROZEN TO REMOVE THE FOAM AND THEN BAKED OR STEAMED TO REMOVE THE EPOXY WHAT REMAINS IS FED INTO A MACHINE CALLED AN AIR CLASSIFIER WHICH SORTS THE VARIOUS PARTICLES BY WEIGHT HEAVY PARTICLES LIKE GOLD FALL TO THE BOTTOM SANDIA'S DREAM MR WHEELIS EXPLAINS IS RUBBLE IN PRODUCT OUT HE FIGURES THAT THE US MAY BE ABLE TO SELL AS MUCH AS 1000 TONS OF RECYCLED MATERIAL FROM NUCLEARWEAPONS ELECTRONICS FOR PRICES UP TO 15000 A TON WE WANT TO SAY TO THE TAXPAYER THAT WE'RE GETTING RID OF NUCLEAR WEAPONS AND AT THE SAME TIME WE HAVE A PROCESS THAT CAN PAY FOR ITSELF THAT DOESN'T HAPPEN ALL THE TIME AT LOS ALAMOS NATIONAL LABORATORY WHERE MANY BRILLIANT UNEXPECTED IDEAS HAVE GONE INTO BOMB CONSTRUCTION THERE HAVE ALSO BEEN SOME RECENT FLASHES OF GENIUS IN THE ART OF DECONSTRUCTING THEM FOR EXAMPLE THE WAY OF GETTING RID OF THE CONVENTIONAL EXPLOSIVES THAT ARE WRAPPED AROUND THE PIT HAS ALWAYS BEEN QUESTIONABLE ADMITS HARRY FLAUGH A FORMER LOS ALAMOS BOMB DESIGNER NOW THE LABORATORY'S DISMANTLEMENTPROGRAM OFFICER UNTIL RECENTLY THE EXPLOSIVES WERE SIMPLY BURNED IN THE OPEN DESERT THE QUESTION WE'RE LOOKING AT IS HOW INSULTING IS THAT TO THE ENVIRONMENT NOW THE WIZARDS OF LOS ALAMOS HAVE FOUND THE SECRET COW MANURE IT CONTAINS BACTERIA THAT EAT THE EXPLOSIVES AND TURN THEM INTO HARMLESS MULCH ESSENTIALLY YOU MAKE A MULCH BY ADDING EQUAL PARTS OF COW MANURE TO THE EXPLOSIVE AND YOU JUST LET IT COOK IT DOES A PRETTY GOOD JOB OF DEGRADING IT EXPLAINS MR FLAUGH 9307090196 930709 DIVIDEND NEWS COLGATEPALMOLIVE CO COLGATEPALMOLIVE CO NEW YORK INCREASED ITS QUARTERLY DIVIDEND 16 TO 36 CENTS A SHARE FROM 31 CENTS PAYABLE AUG 16 TO SHARES OF RECORD JULY 26 THE PERSONAL CARE AND HOUSEHOLD PRODUCTS COMPANY SAID THE INCREASE REFLECTS ITS STRONG EARNINGS AND CASH FLOW AND ITS CONTINUED FAVORABLE OUTLOOK 9307090195 930709 CITIES CITE HEALTH COSTS AS A TOP BUDGET CONCERN WASHINGTON THE COST OF PROVIDING HEALTHCARE BENEFITS TO CITY EMPLOYEES HAS EMERGED AS A LEADING CONCERN OF THE NATION'S CITIES A NATIONAL LEAGUE OF CITIES SURVEY FOUND THAT A MAJORITY OF CITIES RANKED HEALTHCARE COSTS AS THE BIGGEST FACTOR ADVERSELY AFFECTING THEIR BUDGETS NOT SURPRISINGLY THE SURVEY FOUND THAT MOST CITIES AND TOWNS REMAIN UNDER FINANCIAL STRESS WITH 663 OF RESPONDING JURISDICTIONS SAYING THEY ARE LESS ABLE TO MEET THEIR FINANCIAL NEEDS THIS YEAR THAN THEY WERE LAST YEAR AND NEARLY 72 EXPECTING THE SAME TO BE TRUE IN 1994 MORE THAN 70 OF CITIES RAISED TAXES OR FEES IN THE PAST 12 MONTHS THE SURVEY REPORTED IT SAID NEW MUNICIPAL TAXES AND FEES ARE EXPECTED TO GENERATE ABOUT 17 BILLION IN 19921993 FOR ALL CITIES WITH 10000 PEOPLE OR MORE THE NATIONAL LEAGUE OF CITIES SURVEY REPORTED 38 OF THE NATION'S CITIES FROZE MUNICIPAL HIRING THIS YEAR AND THAT 404 ACTUALLY REDUCED MUNICIPAL EMPLOYMENT LOCAL ECONOMIES ARE STILL STRUGGLING AND THE SPUTTERING WEAKNESS OF OUR NATIONAL ECONOMIC INDICATORS IS THE SUM TOTAL OF THOSE LOCAL CONDITIONS SAID DONALD FRASER PRESIDENT OF THE GROUP AND THE MAYOR OF MINNEAPOLIS A NATIONAL ECONOMIC RECOVERY WILL DEPEND ON ACTIONS THAT WILL SERVE TO STRENGTHEN OUR LOCAL ECONOMIES 9307090194 930709 BELGIUM'S LARGEST BANK THINKS BIGGER AS EUROPE'S BORDERS LOOSEN IT SEES A REGIONAL MARKET BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS GENERALE DE BANQUE IS A BIG BANK IN A SMALL COUNTRY AND FROM A GLASSWALLED OFFICE OVERLOOKING THE SPIRES OF DOWNTOWN BRUSSELS ITS CHIEF EXECUTIVE FERDINAND CHAFFART IS CONSIDERING THE HORIZON TO GROW HE SAYS WE HAVE TO LOOK AT EUROPE AND THE WORLD IN A STRATEGY THAT DEMONSTRATES THE ELASTICITY OF BORDERS IN A CHANGING EUROPE BELGIUM'S LARGEST BANK HAS IDENTIFIED AS ITS HOME MARKET AN AREA IN A 250MILE RADIUS OF BRUSSELS THE TERRITORY REACHES ACROSS BELGIUM'S BORDERS TO TAKE IN MUCH OF THE NETHERLANDS FRANCE'S NORDPASDECALAIS REGION AND GERMANY'S NORDRHEINWESTPHALEN AN AREA ACCOUNTING FOR 60 OF BELGIUM'S INTERNATIONAL TRADE THOUGH IT CLAIMS NO AMBITION TO COMPETE WITH THE LIKES OF DEUTSCHE BANK AG AND CITICORP ON THE INTERNATIONAL STAGE IT WANTS TO DEVELOP ITS STATURE IN NORTHERN EUROPE MR CHAFFART A METHODICAL MAN WHO TICKS OFF POINTS IN CONVERSATION BY NUMBER ARRIVED IN 1991 WITH HIM HE BROUGHT COMMERCIAL SAVVY AND A SHARPENED FOCUS TO A THENFLAGGING INSTITUTION A GRITTY FORMER CEMENTINDUSTRY EXECUTIVE WHO BEGAN AS A SALESMAN IN HIS FATHER'S PAINT FIRM HE'S AN EXAMPLE OF A TREND TOWARD CROSSFERTILIZATION OF INDUSTRY AND FINANCE LIKE EASTMAN KODAK CO'S FORMER FINANCE CHIEF CHRISTOPHER J STEFFEN TAPPED THIS YEAR TO RUN CITICORP'S FINANCES IN THE US HE CAME IN AS AN OUTSIDER PREVIOUS POSTS INCLUDE SIX YEARS AT PROCTER & GAMBLE CO'S BELGIAN UNIT 12 YEARS AT A BELGIAN SUGAR REFINER HE HELPED WHIP INTO SHAPE AND ONE YEAR AS CEO OF CIMENTERIES CBR SA A BELGIAN CEMENT FIRM HIS ONLY BANKING EXPERIENCE WAS A SEVENYEAR STRETCH IN THE 1970S AS COMMERCIAL DIRECTOR OF A COMPANY THAT OWNED A SAVINGS BANK THE BANK MR CHAFFART RUNS WHICH OPERATES INTERNATIONALLY AS GENERALE BANK THE DUTCH TRANSLATION OF ITS FRENCH NAME IS ONE OF EUROPE'S TOP 30 IT REPORTED TOTAL CONSOLIDATED ASSETS OF 33 BILLION BELGIAN FRANCS 941 MILLION AT THE END OF 1992 AND HAS 1100 BRANCHES IN BELGIUM AND NEARLY 23000 EMPLOYEES WORLDWIDE HOWEVER AT THE TIME OF HIS ARRIVAL IT HAD JUST PULLED OUT OF PLANS FOR A CROSSBORDER MERGER AND WAS CUTTING COSTS IN RESPONSE TO HEAVY LOSSES ON LOANS TO DEVELOPING COUNTRIES FOR MANY AT THE BANK IT WAS A TRAUMATIC TIME FOR DECADES THE BANK HAD PERATED IN A COZY ENVIRONMENT DOMINATED BY BELGIUM'S FRENCHSPEAKING BUSINESS ESTABLISHMENT UNTIL THE 1930S IT WAS PART OF THE SOCIETE GENERALE DE BELGIQUE INDUSTRIAL CONGLOMERATE WHOSE ORIGINS DATE BACK TO 1822 NEARLY A DECADE BEFORE BELGIUM'S CREATION AS A STATE DURING THE 1970S AND 1980S THE GROWING ASCENDANCY OF BELGIUM'S DUTCHSPEAKING FLANDERS REGION CAUSED A SHIFT IN ITS BUSINESS FINANCIAL DEREGULATION MEANWHILE BEGAN PRESSURING PROFITABILITY IN 1988 GENERALE BANK FORGED AN AMBITIOUS PLAN TO MERGE WITH AMSTERDAMROTTERDAM BANK NV OF THE NETHERLANDS MEANWHILE OLD FRIEND SGB A HOLDER OF A SIZEABLE BLOCK OF GENERALE BANK STOCK BECAME THE VICTIM OF A TAKEOVER BATTLE IN 1989 GENERALE BANK AND AMRO BROKE THEIR ENGAGEMENT FRANCE'S CIE DE SUEZ SA MEANWHILE HAD LANDED 60 OF SGB PROMPTING TALK OF FRENCH DOMINATION OF BELGIAN INDUSTRY AND FINANCE BY THE TIME MR CHAFFART ARRIVED A PROGRAM BEGUN IN 1990 BY HIS PREDECESSOR PAULEMMANUEL JANSSEN NOW CHAIRMAN OF THE BANK'S SUPERVISORY BOARD HAD CUT BELGIAN STAFF BY 2000 OR 12 MR CHAFFART FACED THE SENSITIVE TASK OF INSTILLING NEW DRIVE AND DIRECTION BORN IN DEURNE IN FLANDERS HE CAME IN AS THE BANK'S FIRST NATIVE DUTCHSPEAKING CEO A FACT THAT HELPED HIM IN CONTACTS WITH STAFF AND CLIENTS IT ALSO SERVED TO MUTE TALK OF A BANK DOMINATED BY SUEZ ONE OF HIS FIRST ACTS WAS TO COMMISSION A FIVEYEAR PLAN FOR INVESTMENT IN TECHNOLOGY UNDER THE PLAN ACCOUNTING SYSTEMS ARE BEING REORGANIZED CREDITSCORING SYSTEMS ARE BEING DEVELOPED TO ENABLE BRANCH MANAGERS TO RULE ON LOAN REQUESTS WITHOUT SEEKING HIGHER AUTHORITY AND PRODUCTS ARE BEING STANDARDIZED BUT HIS MOST DIFFICULT TASK WAS TO UNRAVEL A PLANNED INSURANCE ALLIANCE WITH THE BELGIANDUTCH FORTIS UNDER THE PLAN FORTIS WAS PRESSING FOR EXCLUSIVE RIGHTS TO SELL ITS INSURANCE PRODUCTS THROUGH GENERALE BANK AN ARRANGEMENT THAT MR CHAFFART DIDN'T REGARD AS PROFITABLE FOR THE BANK AFTER LENGTHY NEGOTIATIONS THE PLANS WERE ABANDONED THE EUROPEAN EXPANSION THAT HE IS NOW STEERING BEGAN UNDER HIS PREDECESSOR WITH THE 1991 PURCHASE OF A STAKE IN BANQUE PARISIENNE DE CREDIT SA A 110BRANCH PARIS BANK LATER THAT YEAR GENERALE BANK AND BPC TEAMED UP TO CREATE A NEW BANK BASED IN LILLE NORTHERN FRANCE CALLED BANQUE REGIONALE DU NORD BPC IS NOW WHOLLY OWNED BY GENERALE BANK AND BRN RECENTLY OPENED ITS FIRST BRANCH IN VALENCIENNES AND PLANS MORE MR CHAFFART SAYS PLANS ARE NOW UNDER WAY FOR SIMILAR GROWTH IN THE NETHERLANDS AND GERMANY GENERALE OPENED ITS FIRST DUTCH BRANCH EARLIER THIS YEAR IN MAASTRICHT IT PLANS OPENINGS SOON FOR TWO MORE BRANCHES IN BREDA AND EINDHOVEN AND A FOURTH IN SEPTEMBER IN UTRECHT IN GERMANY WHERE A SUBSIDIARY HAS OFFICES IN COLOGNE AND AACHEN EFFORTS TO BUY A GERMAN BANK HAVE FAILED BUT THE UNIT IS EXPECTED TO ANNOUNCE THE OPENING OF NEW BRANCHES SOON ON THE BOTTOM LINE IF GENERALE BANK'S RECENT PERFORMANCE IS ANYTHING TO GO BY MR CHAFFART HAS BEEN SUCCESSFUL SO FAR PERSHARE EARNINGS ROSE 119 LAST YEAR TO 746 FRANCS 2127 REFLECTING THE IMPROVEMENT SHARES ROSE ON BELGIUM'S STOCK EXCHANGE FROM A 1992 LOW OF 5850 FRANCS TO A HIGH OF 8550 FRANCS IN MAY HIGHER PROVISIONS FOR BAD DEBTS COULD POSE PROBLEMS THIS YEAR BUT ANALYSTS EXPECT NET PROFIT TO RISE TO MORE THAN 13 BILLION FRANCS 371 MILLION FROM 107 BILLION FRANCS IN 1992 THAT IN PART REFLECTS A ONETIME GAIN OF 19 BILLION FRANCS ON THE SALE OF STOCK HOLDINGS JAMES HYDE AN ANALYST AT WILLIAMS DE BROE IN LONDON SAYS GENERALE BANK'S PERSHARE EARNINGS ARE LIKELY TO RISE TO 802 FRANCS THIS YEAR EXCLUDING THE STOCK SALE AND TO 844 FRANCS IN 1994 TO RETAIN PREEMINENCE IN BELGIUM MR CHAFFART DOESN'T DISCOUNT ONE DAY BIDDING FOR ANOTHER BELGIAN RIVAL FOLLOWING THE RECENT BREAKDOWN OF PLANS TO COOPERATE WITH FORTIS HE IS ALSO CASTING AROUND FOR WAYS TO STRENGTHEN THE LIFEINSURANCE SIDE OF THE BUSINESS ONE POSSIBLE TAKEOVER QUARRY MIGHT BE BANQUE BRUXELLES LAMBERT SA WHICH WAS UNSUCCESSFULLY TARGETED LAST YEAR BY DUTCH BANKING AND INSURANCE CONGLOMERATE INTERNATIONALE NEDERLANDEN GROEP NV ANOTHER POSSIBILITY IS STATEOWNED SAVINGS BANK ASLKCGER SLATED BY THE GOVERNMENT FOR PRIVATIZATION MR CHAFFART CONFIRMS GENERALE BANK'S BOARD HAS DISCUSSED BOTH POSSIBILITIES BUT HE'S PLAYING HIS CARDS CLOSE TO HIS CHEST WE ARE TALKING ABOUT BBL WE ARE TALKING ABOUT CGER AND WE ARE LOOKING AT OTHER THINGS HE SAYS EVERYTHING WILL DEPEND ON WHAT ARE THE OPPORTUNITIES IN BELGIUM AND THE NEIGHBORING COUNTRIES 9307090193 930709 US SHOE SEES LOSS IN ITS 2ND QUARTER CITING CHARGE APPAREL UNIT WEAKNESS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL US SHOE CORP SAID IT EXPECTS A SUBSTANTIAL LOSS IN ITS SECOND QUARTER ENDING JULY 31 AS A RESULT OF A POOR PERFORMANCE FROM ITS APPAREL UNIT AND A PREVIOUSLY ANNOUNCED CHARGE FROM THE SALE OF 185 CLOTHING STORES THE DISCLOSURE IS FURTHER INDICATION OF PROBLEMS AT THE CINCINNATIBASED WOMEN'S APPAREL FOOTWEAR AND OPTICAL COMPANY WHICH HAS UNDERGONE A MANAGEMENT UPHEAVAL IN THE PAST YEAR AMID DECLINING PROFITS US SHOE DECLINED TO QUANTIFY THE EXPECTED LOSS HOWEVER JEFFREY S STEIN AN ANALYST WITH MCDONALD & CO SAID HE RECENTLY LOWERED HIS FORECAST TO A LOSS OF 38 CENTS A SHARE FROM A LOSS OF FOUR CENTS A SHARE A YEAR EARLIER US SHOE POSTED A LOSS OF 74 MILLION OR 16 CENTS A SHARE ON SALES OF 6403 MILLION IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE US SHOE SHARES WERE QUOTED AT 950 DOWN 25 CENTS SOME ANALYSTS NOW BELIEVE THE COMPANY WILL BREAK EVEN IN 1993 IN 1992 US SHOE REPORTED NET INCOME OF 44 MILLION OR 10 CENTS A SHARE ON SALES OF 265 BILLION THE COMPANY ALSO REPORTED JUNE RETAIL SALES OF 1896 MILLION DOWN 48 FROM 1992 MILLION A YEAR AGO SAMESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR FELL 47 IN THE WOMEN'S APPAREL UNIT JUNE SALES WERE 1005 MILLION 76 BELOW THE YEARAGO PERIOD SAMESTORE SALES DECREASED 77 SALES IN THE OPTICAL UNIT WHICH INCLUDES LENSCRAFTERS WERE 579 MILLION DOWN 1 FROM LAST JUNE SAMESTORE SALES FELL 01 IN THE FOOTWEAR UNIT WHICH INCLUDES EASY SPIRIT STORES JUNE SALES WERE 236 MILLION DOWN 104 SAMESTORE SALES SLID 1 THE COMPANY HAD 61 FEWER SHOE STORES THIS JUNE THAN LAST MR STEIN SAID THE OUTLOOK FOR THE WOMEN'S APPAREL UNIT PARTICULARLY ITS 726 CASUAL CORNER STORES IS MY GREATEST CONCERN IT'S BEEN A MAJOR PROBLEM THERE'S NO GUARANTEE THEY CAN TURN THAT AROUND CASUAL CORNER WHICH HAS BEEN CRITICIZED AS LACKING A CORE MARKETING CONCEPT REPRESENTS 25 OF US SHOE'S TOTAL SALES THE COMPANY SAID EARLIER THIS MONTH IT WILL SELL ALL THE ASSETS OF ITS CAREN CHARLES AND UPS 'N DOWNS APPAREL BUSINESSES TO AIJJ ENTERPRISES CO A CLOSELY HELD APPAREL CONCERN BASED IN BROOKLYN NY TERMS WEREN'T DISCLOSED BUT US SHOE SAID THE MOVE WOULD REQUIRE A 14 CENTASHARE CHARGE INDICATING IT SOLD THE UNITS FOR LESS THAN 27 MILLION ACCORDING TO BRETT BRUBAKER AN ANALYST WITH ABRAHAM & SONS INC THE TRANSACTION INCLUDED 124 CAREN CHARLES AND 61 UPS 'N DOWNS STORES IN ADDITION 30 CAREN CHARLES AND UPS 'N DOWNS STORES WERE CLOSED WITH THE APPAREL UNIT BEING RESTRUCTURED AND NEW MANAGERS HEADING ITS APPAREL AND FOOTWEAR DIVISIONS MR BRUBAKER WHO RATES THE STOCK A STRONG BUY SEES A STRONG POSSIBILITY FOR RECOVERY IN THE NEXT 18 MONTHS I THINK YOU'RE SEEING THE WORST PART OF THE PROBLEMS RIGHT NOW ON THE TABLE SAID MR BRUBAKER WHO EXPECTS US SHOE TO NOW BEGIN RESTRUCTURING ITS FOOTWEAR DIVISION 9307090192 930709 GANTOS INC SALES DECLINE 8 GRAND RAPIDS MICH GANTOS INC SAID ITS SALES FOR STORES OPEN ONE YEAR OR LONGER DURING THE FIVEWEEK PERIOD ENDED JULY 3 FELL 8 TO 215 MILLION SALES FOR ALL STORES DROPPED BY THE SAME AMOUNT THE WOMEN'S APPAREL RETAILER SAID SAMESTORE SALES FOR THE 22WEEK PERIOD WERE OFF 8 TO 1004 MILLION FROM A YEAR AGO SALES FOR ALL STORES ALSO DROPPED 8 9307090191 930709 TEXAS UTILITIES TO CALL BONDS DALLAS TEXAS UTILITIES ELECTRIC CO A UNIT OF TEXAS UTILITIES CO SAID IT WILL REDEEM 450 MILLION OF BONDS ON AUG 9 THE UTILITY WILL REDEEM 200 MILLION 9 3/8 FIRST MORTGAGE AND COLLATERAL TRUST BONDS DUE MARCH 1 2016 THE PRICE IS 10574 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT WILL ALSO REDEEM 250 MILLION OF 9 1/4 FIRST MORTGAGE AND COLLATERAL TRUST BONDS DUE FEB 1 2017 THE REDEMPTION PRICE OF THESE BONDS IS 1062 OF THE PRINCIPAL AMOUNT PLUS INTEREST 9307090190 930709 CANADIAN STEEL PRODUCTION OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 269906 METRIC TONS IN THE WEEK ENDED SATURDAY A 36 INCREASE FROM 260629 TONS IN THE PREVIOUS WEEK BUT A 21 DECLINE FROM 275658 TONS A YEAR EARLIER STATISTICS CANADA SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 7241919 TONS A 31 INCREASE FROM 7025896 TONS A YEAR EARLIER 9307090189 930709 BIG STEELMAKERS IMPROVE PROFITS FOR 2ND QUARTER DEMAND JUMPED IN PERIOD ALUMINUM PRODUCERS STILL FACE HARD TIMES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL MANY BIG STEELMAKERS IMPROVED THEIR RESULTS IN THE SECOND QUARTER AS STEEL MINIMILLS AND SPECIALTY STEEL PRODUCERS CONTINUED TO SHINE AND ALUMINUM COMPANIES FLOUNDERED DEMAND FOR STEEL SOARED IN THE PERIOD AS AUTO AND APPLIANCE MAKERS RETURNED TO THE MARKET WITH NEW FORCE SHIPMENTS ROSE 77 FROM A YEAR AGO AND 32 FROM THE 1993 FIRST QUARTER ACCORDING TO WALTER CARTER AN ANALYST WITH DRI/MCGRAW HILL IMPORTS IN APRIL THE MOST RECENT MONTH AVAILABLE FELL TO 146 OF THE MARKET FROM 194 A YEAR AGO BECAUSE OF LARGE DUTIES IMPOSED BY THE GOVERNMENT THIS HELPED BOOST SPOTMARKET PRICES OVER 9 FROM YEARAGO LEVELS AS A RESULT PAINEWEBBER ANALYST PETER MARCUS PREDICTS MOST BIG STEELMAKERS WILL RECORD OPERATING PROFITS AVERAGING 5 TO 10 A TON REVERSING YEARAGO LOSSES USX CORP'S US STEEL SHOULD POST NET INCOME OF ABOUT 45 CENTS A SHARE BEFORE A HUGE CHARGE TO COVER A LAWSUIT ACCORDING TO FIRST CALL CORP'S AVERAGE OF ANALYSTS' ESTIMATES US STEEL EARNED 10 CENTS A SHARE IN THE YEARAGO PERIOD INLAND STEEL INDUSTRIES INC'S LOSS IS EXPECTED TO SHRINK TO 51 CENTS A SHARE FROM 69 CENTS BEFORE A GAIN WHILE BETHLEHEM STEEL CORP'S LOSS SHOULD SHRIVEL TO EIGHT CENTS A SHARE FROM 52 CENTS BEFORE A CHARGE ARMCO INC SHOULD SEE A LOSS OF SIX CENTS A SHARE VS A YEARAGO PROFIT OF A PENNY BEAR STEARNS ANALYST ANTHONY B RIZZUTO BELIEVES THERE IS POTENTIAL FOR AN UPSIDE SURPRISE AMONG STEELMAKERS IN THE QUARTER HE THINKS BETHLEHEM BENEFITING FROM A MORE LUCRATIVE MIX OF SHIPMENTS COULD BREAK EVEN OR POST A PROFIT AND WITH MINIMILLS JOINING THE PARADE OF PRICE INCREASES LIGHTENING PRESSURE ON BIGGER MILLS MR RIZZUTO EXPECTS ALL MAJOR PRODUCERS TO BE PROFITABLE BY THE THIRD OR FOURTH QUARTER THE THIRD QUARTER COULD BE BUMPY HOWEVER THREE PRODUCERS ARMCO BETHLEHEM AND NATIONAL STEEL CORP HAVE YET TO REACH NEW LABOR ACCORDS FOR THEIR CONTRACTS EXPIRING JULY 31 AND STEEL COMPANIES COULD TAKE A BEATING IF THE US INTERNATIONAL TRADE COMMISSION REJECTS DUTIES ON FOREIGN STEEL LATER THIS MONTH STEELMAKERS MAY ALSO HAVE TROUBLE GETTING THE PRICE INCREASES THEY WANT FROM BIG CUSTOMERS JOHN JACOBSON A CONSULTANT WHO RUNS JACOBSON & ASSOCIATES SAYS THE PRODUCERS HAVE HAD TO SETTLE FOR PRICE INCREASES OF 2 TO 3 FROM GENERAL MOTORS CORP A BIT DISCOURAGING FOR THE INDUSTRY THE TOP STEEL MINIMILLS AND SPECIALTY STEEL MAKERS SHOULD CONTINUE THEIR STRING OF EARNINGS GROWTH MINIMILL OPERATOR NUCOR CORP WHICH RECENTLY ANNOUNCED EXPANSIONS THAT WOULD MAKE IT THE FOURTHLARGEST STEELMAKER IN THE US SHOULD SEE PROFIT IN THE QUARTER SWELL TO 68 CENTS FROM 40 CENTS STAINLESSSTEEL MAKER ALLEGHENY LUDLUM CORP SHOULD SEE PROFIT CLIMB TO 28 CENTS FROM 21 CENTS ADJUSTED FOR A STOCK SPLIT THE PROSPECTS AREN'T AS GOOD FOR ALUMINUM PRODUCERS SHIPMENTS THOUGH UP MODESTLY HAVE BEEN HURT BY DECLINING DEMAND FOR CAN SHEET BECAUSE OF LESS DEMAND FOR CANNED DRINKS AND DESPITE A JUSTANNOUNCED CUTBACK IN PRODUCTION BY ALUMINUM CO OF AMERICA THAT HAS LIFTED INTERNATIONAL PRICES THE WORLDWIDE OVERSUPPLY CONTINUES TO DEPRESS PRICES AND RESULTS PRICES FOR RAW ALUMINUM ARE ABOUT EVEN WITH HISTORICALLY LOW YEARAGO LEVELS WHILE FINISHEDALUMINUM PRICES HAVE SLID FURTHER AS PRICE COMPETITION HAS INTENSIFIED WITH METAL STILL FLOWING FROM THE FORMER SOVIET UNION ANALYSTS BELIEVE OTHER WESTERN PRODUCERS MUST MATCH ALCOA'S CUTS IF THE INDUSTRY IS TO EMERGE FROM ITS SLUMP ANY TIME THIS YEAR WALL STREET EXPECTS ALCOA WHICH IS SCHEDULED TO REPORT RESULTS TODAY TO POST A PROFIT OF 35 CENTS A SHARE BEFORE CHARGES FOR CAPACITY AND WORKFORCE CUTBACKS LAST YEAR ITS PERSHARE PROFIT WAS 85 CENTS BEFORE A CHARGE ALCAN ALUMINIUM LTD SHOULD SEE A LOSS ABOUT EVEN WITH THE YEARAGO PERIOD'S 10 CENTS BEFORE CHARGES REYNOLDS METALS CO SUFFERING FROM HEAVY EXPOSURE TO THE CAN AND PACKAGING MARKET SHOULD SEE A LOSS OF ABOUT 25 CENTS A SHARE REVERSING A PROFIT OF 56 CENTS TWO OTHER PRODUCERS AMAX INC AND KAISER ALUMINUM CORP ARE ALSO FORECAST TO HAVE LOSSES 9307090188 930709 VALUE CITY SALES COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID JUNE SAMESTORE SALES DECREASED 24 TOTAL JUNE STORE SALES AT THE OFFPRICE DEPARTMENT STORE ROSE 04 TO 71 MILLION FROM 707 MILLION A YEAR AGO TOTAL YEARTODATE SALES FOR THE COMPANY HAVE RISEN 4 TO 776 MILLION FROM 7462 MILLION IN THE SAME PERIOD LAST YEAR 9307090187 930709 UNITED RETAIL GROUP'S SALES RISE ROCHELLE PARK NJ UNITED RETAIL GROUP INC REPORTED JUNE SALES OF 379 MILLION UP 11 FROM 34 MILLION A YEAR EARLIER JUNE SAMESTORE SALES ROSE 1 THE COMPANY WHICH OPERATES THE AVENUE 16 PLUS AND SIZES UNLIMITED WOMEN'S LARGESIZE APPAREL STORES HAD SALES OF 1541 MILLION IN THE FIRST FIVE MONTHS OF ITS FISCAL YEAR ENDING NEXT JAN 31 A 16 INCREASE FROM 1328 MILLION A YEAR EARLIER SAMESTORE SALES OR SALES IN STORES OPEN MORE THAN A YEAR DECLINED 3 THE COMPANY HAS A TOTAL OF 502 STORES 9307090185 930709 ECONOMY UNEMPLOYMENT CLAIMS FELL IN WEEK ENDED JULY 3 WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 12000 IN THE WEEK ENDED JULY 3 TO A SEASONALLY ADJUSTED 327000 FROM A REVISED 339000 THE PREVIOUS WEEK THE LABOR DEPARTMENT SAID THE FIGURE WAS THE LOWEST SINCE THE WEEK ENDED FEB 13 WHEN 325000 NEW CLAIMS WERE FILED THE DEPARTMENT SAID IN THE WEEK ENDED JUNE 26 A TOTAL OF 2781000 PEOPLE WERE RECEIVING STATE UNEMPLOYMENT BENEFITS DOWN 95000 FROM THE PREVIOUS WEEK THE FOURWEEK AVERAGE FOR NEW CLAIMS WAS 340500 DURING THE JULY 3 WEEK DOWN FROM 344500 THE PREVIOUS WEEK AND THE LOWEST SINCE MAY 22 WHEN THE LEVEL WAS 339500 9307090184 930709 PIER 1 SALES UP 93 FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FIVEWEEK PERIOD ENDED SATURDAY INCREASED 93 TO 668 MILLION FROM 611 MILLION A YEAR EARLIER THE SPECIALTY RETAILER SAID SALES AT STORES OPEN FOR MORE THAN ONE YEAR ROSE 65 YEARTODATE SALES CLIMBED 57 TO 2254 MILLION FROM 2132 MILLION A YEAR EARLIER COMPARABLESTORES SALES INCREASED 27 9307090183 930709 NEW JERSEY SUES OFFICIALS OF FAILED MUTUAL BENEFIT TRENTON NEW JERSEY FILED A LAWSUIT AGAINST THE FORMER OFFICERS AND DIRECTORS OF FAILED MUTUAL BENEFIT LIFE INSURANCE CO IN THE LAWSUIT FILED IN STATE COURT IN MERCER COUNTY NJ THE STATE ALLEGES THAT THE OFFICIALS WERE NEGLIGENT WHEN THEY MADE AND ALLOWED THE RISKY INVESTMENTS THAT LED TO THE DOWNFALL OF THE COMPANY MUTUAL BENEFIT HAD LOSSES OF ABOUT 1 BILLION FROM 1979 TO 1991 MOSTLY FROM INVESTMENTS IN REAL ESTATE THE NEWARK NJ COMPANY WAS ONE OF THE LARGEST INSURERS EVER TO FAIL NAMED IN THE SUIT WERE FORMER MUTUAL BENEFIT PRESIDENT HENRY KATES OUTSIDE DIRECTORS INCLUDING AMERICAN EXPRESS CO DIRECTOR AND FORMER CHAIRMAN RICHARD FURLAUD AND THE ACCOUNTING FIRM ERNST & YOUNG AS WELL AS OTHER FORMER OFFICERS WITH THE COMPANY MR KATES'S ATTORNEY MARTIN POLLNER SAID HIS CLIENT ACTED PRUDENTLY DURING HIS TENURE WITH MUTUAL BENEFIT AND SAID THE CHARGES WERE UNFOUNDED STEVEN RADIN WHO REPRESENTS SEVERAL OF THE OUTSIDE DIRECTORS INCLUDING MR FURLAUD SAID HE COULDN'T COMMENT ON SPECIFIC ALLEGATIONS BECAUSE HE HADN'T SEEN THE SUIT BUT HE SAID HE WOULD CONTEST THE LAWSUIT BOTH ATTORNEYS SAID THE STATE WASN'T INTERESTED IN DISCUSSING A SETTLEMENT OFFICIALS WITH THE NEW JERSEY ATTORNEY GENERAL'S OFFICE DECLINED TO COMMENT ON THAT ASSERTION A SPOKESMAN FOR ERNST & YOUNG SAID THE ACCOUNTING FIRM ACTED PROPERLY AND THAT ON SEVERAL OCCASIONS IT RAISED ISSUES WITH MUTUAL BENEFIT WITH RESPECT TO THE COMPANY'S INVESTMENTS 9307090182 930709 FOREIGNERS SEEK SCIENTIFIC TIES WITH RUSSIA VENTURE CAPITALISTS WANT TECHNOLOGY TO DEVELOP AND MARKET IN WEST BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW FOREIGN BUSINESSMEN ARE STEPPING UP THEIR EFFORTS TO FIND OUT MORE ABOUT THE FAMED BUT LITTLEKNOWN RUSSIAN TECHNOLOGY WHAT EXACTLY THERE IS AND WHAT IT'S WORTH ASIDE FROM INDIVIDUAL EFFORTS BY INTREPID COMPANIES SEVERAL LARGESCALE TECHNOLOGY SWEEPS ARE UNDER WAY AIMING TO MAKE MATCHES BETWEEN RUSSIAN SCIENCE AND FOREIGN BUSINESS AMERICAN BIOTECH VENTURE CAPITALISTS KNOW THAT THERE IS POTENTIALLY VALUABLE BENCH RESEARCH GOING ON HERE BUT THEY DON'T KNOW HOW TO GET IT SAYS MICHAEL EGAN A PARTNER IN THE CALIFORNIA INVESTMENT FIRM SANDERLING VENTURES AND ONE OF A TEAM OF AMERICAN SCIENTISTS AND VENTURE CAPITALISTS LOOKING FOR CUTTINGEDGE BIOTECHNOLOGY AND MEDICAL TECHNOLOGY TO INTRODUCE TO THE WEST RUSSIA HE SAYS HAS GREAT SCIENCE AND VERY BRIGHT PEOPLE BUT THEY DON'T KNOW HOW TO MARKET AND THEY DON'T KNOW HOW TO SELL SOME ROYALTY AND LICENSING AGREEMENTS WITH WESTERN COMPANIES ALREADY EXIST BUT THEY BARELY SCRATCH THE SURFACE MEMBERS OF THE ASSESSMENT TEAM SAY THE FIRST SHOWING IN THE US OF RUSSIA'S MOST PROMISING BIOTECHNOLOGY AND BIOMEDICAL DISCOVERIES WILL BE HELD IN NOVEMBER AT THE VIRGINIA BIOTECHNOLOGY RESEARCH PARK IN RICHMOND VA TOGETHER WITH RUSSIA'S NUCLEAR ENERGY MINISTRY AND ST PETERSBURG'S REGIONAL SCIENCE FOUNDATION THE AMERICAN TEAM IS SCREENING HUNDREDS OF RUSSIAN PRESENTATIONS TO CULL THE MOST COMMERCIALLY USEFUL DISCOVERIES UNDER SOVIET COMMUNISM NEWS OF SCIENTIFIC DISCOVERIES WAS SCANT SCIENTISTS WEREN'T ALLOWED TO COMMERCIALLY DEVELOP THEIR OWN RESEARCH NOW WITH STATE SCIENTIFIC INSTITUTES STARVING FOR FUNDING SCIENTISTS ARE EMBARKING ON COMMERCE BY THEMSELVES RECENT NEW PATENT LAWS WHILE PROBLEMATIC FOR THE FIRST TIME GIVE RESEARCHERS CLAIM TO THEIR WORK THIS ENCOURAGES THEM TO FORM PRIVATE COMPANIES AND TO SEEK FOREIGN PARTNERS BUT THEY NEED HELP IT'S IMPOSSIBLE TO DEVELOP HIGH TECHNOLOGY WITHOUT MONEY SAYS IGOR KUZMIN DIRECTOR OF SCIENTIFIC AFFAIRS FOR THE ST PETERSBURG FOUNDATION AND A COORDINATOR FOR THE ASSESSMENT TEAM VISIT MR KUZMIN AND THE AMERICAN VISITORS SAY THE RUSSIAN SCIENTISTS THEY'VE TALKED WITH AREN'T LOOKING FOR QUICK SALES RATHER FOR LONGERTERM HELP IN THE BASICS OF COMMERCIALIZATION SO FAR SAYS MR KUZMIN RUSSIANS HAVE BEEN GUESSING AT WHAT WOULD BE THE BEST TO PROPOSE FOR WESTERN INVESTMENT THE BIOTECHNOLOGY TEAM WHICH THIS SUMMER WILL MAKE ITS FINAL SELECTIONS FOR THE NOVEMBER SHOW HAS SO FAR FOUND INTERESTING WORK IN SUCH AREAS AS ADVANCED COMPUTER ANALYSIS OF ELECTROCARDIOGRAMS NEW APPROACHES TO CANCER DIAGNOSIS AND TREATMENT AND FIBER OPTICS FOR USE IN ULCER TREATMENT ANOTHER TECHNOLOGY TREASURE TROVE BELIEVED TO BE HIDDEN BEHIND THE IRON CURTAIN IS THE POTENTIAL COMMERCIAL APPLICATIONS OF TECHNOLOGIES DEVELOPED UNDER SECRECY FOR MILITARY USE IN THE FORMER SOVIET UNION MOST TOP QUALITY RESEARCH AND DEVELOPMENT GREW OUT OF MILITARY PROJECTS IF A TECHNOLOGY HAD NO IMMEDIATE MILITARY APPLICATION IT WAS SHELVED RATHER THAN COMMERCIALIZED IF A TECHNOLOGY WAS USED IN MILITARY PROJECTS IT STAYED SECRET A NEW RUSSIANUS JOINT VENTURE AIMS TO IDENTIFY AND EVALUATE THESE TECHNOLOGIES AND OTHERS FOR LICENSING AND MARKETING OUTSIDE THE FORMER SOVIET UNION THE NEW ARLINGTON VA COMPANY EAST/WEST TECHNOLOGY PARTNERS LTD BRINGS TOGETHER THE US COMPANY BDM INTERNATIONAL INC THE INTERNATIONAL TECHNOLOGY EXCHANGE CORP OF WASHINGTON DC AND A NEW RUSSIAN COMPANY TECHNOLOGY EXHIBITION & INVESTMENT INC OF MOSCOW THE RUSSIAN PARTNER IS ABLE TO OPEN THE DOOR ON DEFENSE RESEARCH FOR THE JOINT VENTURE BECAUSE IT IS ESSENTIALLY A CONSORTIUM OF TOP RUSSIAN SCIENTISTS INCLUDING YEVGENY VELIKHOV VICE PRESIDENT OF THE RUSSIAN ACADEMY OF SCIENCES AND A LEADER IN THE SOVIET PHYSICS ESTABLISHMENT THIS STEP WAS POSSIBLE ONLY DUE TO THE END OF THE COLD WAR AND THE NEW RELATIONSHIP BETWEEN DEMOCRATIC RUSSIA AND THE WEST HE TOLD REPORTERS EAST/WEST TECHNOLOGY PARTNERS ALREADY HAS MORE THAN 50 TECHNOLOGIES FOR SALE MANY OF THEM DUALUSE DEFENSE TECHNOLOGIES IN AREAS SUCH AS LASER MICROMACHINING METALLURGY NEW MATERIALS MICROELECTRONICS OPTICS AND NUCLEAR ENERGY SYSTEMS THE COMPANY PLANS TO OPEN EXHIBITS OF THE TECHNOLOGIES IN MOSCOW AND WASHINGTON THE VENTURE HAS ALREADY ANNOUNCED ITS FIRST MATCHMAKING SUCCESSES BETWEEN WESTERN COMPANIES AND RUSSIAN TECHNOLOGIES PARAMAX A UNIT OF UNISYS CORP OF THE US HAS SIGNED AN AGREEMENT TO LICENSE TECHNOLOGY DEVELOPED FOR USE IN SOVIET MILITARY AIRCRAFT AS A DEFENSE AGAINST ELECTROMAGNETIC PULSES THE NEW APPLICATION AN ELECTRONIC PACKAGING METHOD TO MAKE PRINTED CIRCUIT BOARDS AND OTHER ELECTRONIC DEVICES OUT OF ALUMINUM SOLAREX CORP OF MARYLAND IS NEGOTIATING THE LICENSING OF TECHNOLOGY THAT COULD CUT THE COST OF PRODUCING SOLAR CELLS AND SEMIMETRICS LTD A BRITISH MAKER OF SILICONCHIP TESTING EQUIPMENT HOPES TO LICENSE A RUSSIAN ELECTROLYTIC PROBE THAT CAN TEST SILICON WAFERS WITHOUT DAMAGING THEM 9307090181 930709 INTERNATIONAL BRAZIL'S TRADE SURPLUS RISES BRASILIA BRAZIL'S TRADE SURPLUS ROSE TO 145 BILLION IN MAY UP 55 FROM A YEAR EARLIER THE INDUSTRY AND COMMERCE MINISTRY SAID THE SURPLUS WAS UP SHARPLY FROM APRIL WHEN EXPORTS OUTSTRIPPED IMPORTS BY JUST 589 MILLION MAY EXPORTS WERE 304 BILLION VIRTUALLY UNCHANGED FROM 303 BILLION IN APRIL IMPORTS FELL HOWEVER TO 159 BILLION FROM 244 BILLION THE PREVIOUS MONTH THE ACCUMULATED SURPLUS IN THE FIRST FIVE MONTHS OF THE YEAR WAS 655 BILLION EXPORTS IN THE PERIOD WERE A RECORD 1551 BILLION WHILE IMPORTS TOTALED 896 BILLION 9307090180 930709 MONEY FUND ASSETS JUMP 1357 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS JUMPED 1357 BILLION TO 57766 BILLION FROM A REVISED 56409 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 639 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 834 BILLION TO 39113 BILLION THE TRADE GROUP SAID ASSETS OF 399 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 521 BILLION TO 30786 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS ROSE BY 313 BILLION TO 8327 BILLION ASSETS OF THE 268 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 523 BILLION TO 18653 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 215 TAXABLE MONEY MARKET FUNDS ROSE BY 371 BILLION TO 16502 BILLION ASSETS OF 53 TAXEXEMPT FUNDS ROSE BY 152 BILLION TO 2151 BILLION 9307090179 930709 STARBUCKS POSTS HIGHER SALES SEATTLE STARBUCKS CORP SAID SALES FOR THE FIVE WEEKS ENDED JUNE 27 INCREASED 74 TO 164 MILLION FROM 94 MILLION SALES AT THE COFFEE RETAILER'S OUTLETS OPEN MORE THAN A YEAR ROSE 20 9307090178 930709 WHO'S NEWS PRUDENTIAL INSURANCE CO PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ THIS COMPANY NAMED DENIS F KELLY 43 YEARS OLD TO THE NEW POSITION OF MANAGING DIRECTOR FOR MERGERS AND ACQUISITIONS AT ITS PRUDENTIAL SECURITIES GROUP INC UNIT PRUDENTIAL SECURITIES HAS A SMALL PRESENCE IN INVESTMENT BANKING INCLUDING MERGERS AND ACQUISITIONS ACTIVITY MR KELLY WAS MOST RECENTLY PRESIDENT OF DENBROOK CAPITAL A CLOSELY HELD MERCHANT BANKING FIRM IN NEW YORK PRIOR TO THAT HE WAS A MANAGING DIRECTOR IN MERRILL LYNCH & CO'S MERGERS AND ACQUISITIONS DEPARTMENT AND LATER IN ITS MERCHANT BANKING GROUP 9307090176 930709 GOOD GUYS SALES RISE 10 SAN FRANCISCO GOOD GUYS INC SAID FISCAL THIRDQUARTER SALES ROSE 10 TO 1258 MILLION FROM 1148 MILLION BUT COMPARABLESTORE SALES AT THE CONSUMER ELECTRONICS RETAILER FOR THE PERIOD ENDED JUNE 30 DECLINED 1 9307090175 930709 BONTON'S JUNE SALES ROSE 57 YORK PA BONTON STORES INC REPORTED THAT SALES INCREASED 57 FOR THE FIVE WEEKS ENDED JULY 3 CLIMBING TO 273 MILLION FROM 259 MILLION A YEAR EARLIER SAMESTORE SALES ROSE 49 FOR THE FIRST FIVE MONTHS OF BONTON'S FISCAL YEAR ENDING JAN 31 SALES WERE 1177 MILLION UP 2 FROM 1153 MILLION IN THE YEAREARLIER PERIOD SAMESTORE SALES OR SALES IN STORES OPEN MORE THAN A YEAR FELL 2 BONTON OPERATES 35 DEPARTMENT STORES IN MALLS IN PENNSYLVANIA MARYLAND NEW YORK AND WEST VIRGINIA IT PLANS TO OPEN ANOTHER STORE IN SARATOGA SPRINGS NY IN AUGUST 9307090174 930709 WHO'S NEWS GOODY'S FAMILY CLOTHING INC GOODY'S FAMILY CLOTHING INC KNOXVILLE TENN THIS CLOTHING STORE CHAIN NAMED FOUR NEW DIRECTORS EXPANDING THE BOARD TO 10 MEMBERS THEY ARE E DOUGLAS GRINDSTAFF 52 YEARS OLD CHIEF EXECUTIVE OFFICER OF GENESCO INC PHILIP G SATRE 44 PRESIDENT AND CHIEF OPERATING OFFICER OF PROMUS COS HANS J STERNBERG CHAIRMAN OF H&J CAPITAL CORP AND HENRY J NASELLA FORMER PRESIDENT AND CHIEF EXECUTIVE OF STAPLES INC DONALD A VANDENBERG 44 CHIEF FINANCIAL OFFICER RESIGNED FROM THE BOARD AS PART OF THE COMPANY'S EFFORTS TO BRING IN MORE OUTSIDE DIRECTORS 9307090173 930709 FINANCING BUSINESS AGNICOEAGLE MINES LTD AGNICOEAGLE MINES LTD TORONTO SAID IT PLANS TO SELL 425 MILLION SHARES AT 11 EACH THE GOLD PRODUCER SAID IT WILL USE THE NET PROCEEDS ABOUT 439 MILLION TO REPAY BANK DEBT FINANCE DEVELOPMENT AND EXPLORATION AND FOR GENERAL CORPORATE PURPOSES THE OFFERING IS EXPECTED TO CLOSE BY JULY 15 AGNICOEAGLE SHARES CLOSED AT 11375 DOWN 150 OR 12 YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY HAD 312 MILLION SHARES OUTSTANDING AT LAST REPORT 9307090172 930709 50OFF STORES SALES UP SAN ANTONIO 50OFF STORES INC SAID SALES FOR THE FOURWEEK PERIOD ENDED JUNE 25 INCREASED 18 TO 126 MILLION FROM 106 MILLION IN THE YEAREARLIER PERIOD BUT THE DISCOUNT RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR DECREASED 14 9307090171 930709 HONG KONG EXPORTS CLIMB HONG KONG TOTAL EXPORT VOLUME FROM HONG KONG JUMPED 21 IN APRIL COMPARED WITH A YEAR EARLIER BUOYED BY A 27 INCREASE IN REEXPORTS AMONG REEXPORTS OF GOODS A MAJOR INCREASE WAS RECORDED IN FUELS AND CAPITAL GOODS WHICH SURGED 564 AND 448 RESPECTIVELY IN APRIL FROM A YEAR EARLIER THE GOVERNMENT SAID BUT FOODSTUFFS SKIDDED 173 REEXPORTS ARE GOODS IMPORTED INTO HONG KONG AND THEN SHIPPED ABROAD WITHOUT MATERIAL CHANGEEND 9307090170 930709 MEN'S WEARHOUSE POSTS GAINS FREMONT CALIF MEN'S WEARHOUSE SAID JUNE SALES ROSE 36 TO 194 MILLION FROM 143 MILLION SALES AT STORES OPERATED FOR MORE THAN A YEAR BY THE APPAREL RETAILER ROSE 14 9307090169 930709 WHO'S NEWS MICROGRAFX INC MICROGRAFX INC RICHARDSON TEXAS EUGENE P BEARD 57 YEARS OLD A DIRECTOR AND EXECUTIVE VICE PRESIDENT OF FINANCE AND OPERATIONS OF INTERPUBLIC GROUP OF COS INC WAS ELECTED TO THE BOARD OF THIS COMPUTER SOFTWARE COMPANY INCREASING THE NUMBER OF DIRECTORS TO SIX 9307090168 930709 TODAY'S MAN POSTS SALES RISE MOORESTOWN NJ TODAY'S MAN INC ANNOUNCED SALES INCREASED 21 TO 171 MILLION FOR THE FIVE WEEKS ENDED SATURDAY FROM 142 MILLION A YEAR EARLIER SAMESTORE SALES ROSE 1 SALES FOR THE FISCAL FIVEMONTH PERIOD ENDED SATURDAY CLIMBED 23 TO 608 MILLION FROM 492 MILLION A YEAR EARLIER SAMESTORE SALES GREW 3 TODAY'S MAN HAS 18 MENSWEAR STORES IN THE NORTHEAST 9307090167 930709 WHO'S NEWS CHRYSLER CORP CHRYSLER CORP HIGHLAND PARK MICH HARRY A LEWIS 51 YEARS OLD WAS ELECTED VICE PRESIDENT OF PROCESS MANAGEMENT AND CONTINUOUS IMPROVEMENT FOR THIS AUTO MAKER MR LEWIS PREVIOUSLY WAS EXECUTIVE DIRECTOR OF PROCESS MANAGEMENT 9307090166 930709 WHO'S NEWS UNION CARBIDE CORP UNION CARBIDE CORP DANBURY CONN LINDA A KOFFENBERGER FORMERLY WORLDWIDE BUSINESS MANAGER FOR SPECIALTY GAS TREATING PRODUCTS AND SERVICES WAS NAMED PRESIDENT OF THIS CHEMICAL CONCERN'S AMERCHOL CORP UNIT WHICH SUPPLIES INGREDIENTS TO THE PERSONALCARE INDUSTRY SHE SUCCEEDS STEVEN E FOSTER WHO LEFT THE COMPANY 9307090165 930709 SHARES OF POLICY MANAGEMENT FALL ON PROFIT ESTIMATE ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBIA SC POLICY MANAGEMENT SYSTEMS CORP'S SHARES PLUNGED AGAIN AFTER THE COMPANY DISCLOSED THAT SECONDQUARTER RESULTS WILL BE SIGNIFICANTLY AFFECTED BY LOWER EARNINGS IN ITS HEALTH DIVISION THE INSURANCE SOFTWARE CONCERN ALSO DISCLOSED IT WILL TAKE CHARGES IN THE QUARTER TO COVER EARLY TERMINATION OF TWO DEVELOPMENT PROJECTS AND THE DEDUCTIBLE FOR ITS DIRECTORS' AND OFFICERS' LIABILITY POLICY THE COMPANY EXPECTS OTHER SECONDQUARTER CHARGES ARISING FROM ITS INTERNAL INVESTIGATION OF ITS ACCOUNTING PRACTICES WHICH ISN'T COMPLETED COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT YESTERDAY IN TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S STOCK CLOSED AT 2675 DOWN 8625 OR 24 IN APRIL POLICY MANAGEMENT TRADITIONALLY A MODEL OF EARNINGS PREDICTABILITY DISCLOSED THAT FIRSTQUARTER RESULTS WOULD FALL WELL BELOW THE COMPANY'S EXPECTATIONS BECAUSE SEVERAL CONTRACTS HADN'T CLOSED AS EXPECTED THAT NEWS PROMPTED POLICY MANAGEMENT'S SHARE PRICE TO FALL 43 OR 3625 IN A SINGLE DAY SINCE THEN THE ACCURACY OF THE COMPANY'S FINANCIAL REPORTING HAS BECOME THE SUBJECT OF FEDERAL AND INTERNAL INVESTIGATIONS AND VARIOUS SHAREHOLDERS HAVE SUED POLICY MANAGEMENT ALLEGING THAT MANAGEMENT MISREPRESENTED THE COMPANY'S FINANCIAL HEALTH THE COMPANY HAS CONTENDED THAT ITS ACCOUNTING PRACTICES ARE SOUND IN THE 1992 SECOND QUARTER POLICY MANAGEMENT POSTED NET INCOME OF 144 MILLION OR 62 CENTS A SHARE ON REVENUE OF 1231 MILLION THE COMPANY SAID IT EXPECTS TO REPORT 1993 SECONDQUARTER RESULTS BY AUG 14 THE COMPANY ALSO DISCLOSED YESTERDAY THAT THE FEDERAL TRADE COMMISSION HAS REQUESTED MORE INFORMATION RELATED TO ITS 60 MILLION OFFER TO BUY CYBERTEK CORP A DALLAS INSURANCE SOFTWARE CONCERN ANALYSTS SAID THE COMPANY'S PROBLEMS AREN'T OVER STEPHEN J SHOOK OF INTERSTATE JOHNSON LANE IN CHARLOTTE NC SAID HE WILL LOWER HIS CURRENT 230ASHARE ESTIMATE FOR 1993 EARNINGS BUT HE HASN'T PICKED A NEW FIGURE BECAUSE IT'S PREMATURE GUESSING IN THE LONG RUN HE SAID POLICY MANAGEMENT'S RESULTS WILL IMPROVE BUT THE COMPANY MAY NOT DO FINE FOR THREE SIX OR NINE MONTHS HE SAID 9307090164 930709 CHARMING SHOPPES SALES UP BENSALEM PA CHARMING SHOPPES INC REPORTED ITS TOTAL SALES FOR THE FIVE WEEKS ENDED SATURDAY ROSE 8 TO 1169 MILLION FROM 1087 MILLION IN THE YEAREARLIER PERIOD SAMESTORE SALES WERE FLAT SALES FOR THE FISCAL YEAR TO DATE WERE 4977 MILLION UP 6 FROM 4677 MILLION SAMESTORE SALES OR SALES IN STORES OPEN MORE THAN ONE YEAR DECREASED 1 CHARMING SHOPPES OPERATES 1251 STORES IN 43 STATES UNDER THE NAMES FASHION BUG AND FASHION BUG PLUS 9307090163 930709 INTERNATIONAL SPANISH CHIEF VOWS MEASURES TO BOLSTER STUMBLING ECONOMY SPECIAL TO THE WALL STREET JOURNAL MADRID ACTING PRIME MINISTER FELIPE GONZALEZ SAID HIS NEW GOVERNMENT WILL CURB PUBLIC SPENDING AND INTRODUCE THE STRUCTURAL REFORMS NEEDED TO REDUCE SPAIN'S HIGH INTEREST RATES AND STIMULATE ITS TROUBLED ECONOMY SPEAKING IN PARLIAMENT MR GONZALEZ STRESSED THE NEED FOR THE ECONOMY TO RETURN TO LONGTERM BALANCED GROWTH A GOAL THAT HAS ELUDED HIS RULING SOCIALIST PARTY SINCE IT TOOK OFFICE IN 1982 A PACT AMONG UNIONS EMPLOYERS AND THE GOVERNMENT HE SAID WILL FORM THE CORNERSTONE OF AN ECONOMIC POLICY DESIGNED TO ACHIEVE THAT GOAL THOUGH ATTEMPTS TWO YEARS AGO TO REACH A SIMILAR CONSENSUS ON ECONOMIC POLICY BROKE DOWN SPAIN'S DIRE ECONOMIC SITUATION CHARACTERIZED BY A CONTRACTING ECONOMY AND A 22 UNEMPLOYMENT RATE HAS BROUGHT UNIONS AND EMPLOYERS BACK TO THE NEGOTIATING TABLE WITHOUT THE MAJORITY HE HAS ENJOYED IN PARLIAMENT FOR 11 YEARS MR GONZALEZ NEEDS THE SUPPORT OF UNIONS AND EMPLOYERS AND OTHER POLITICAL PARTIES TO BRING ORDER TO SPAIN'S FINANCES MR GONZALEZ'S CAREFULLY WORDED SPEECH REFLECTED A DESIRE TO AVOID ALIENATING UNIONS EMPLOYERS OR HIS POTENTIAL POLITICAL ALLIES THE CONSERVATIVE BASQUE AND CATALAN NATIONALIST PARTIES WHILE MENTION WAS MADE OF THE NEED FOR STRUCTURAL REFORMS HE WAS VAGUE ON DETAILS FOR EXAMPLE OMITTING REFERENCES TO MEASURES EASING SPAIN'S STRICT FIRING LAWS INSTEAD MR GONZALEZ SAID LABOR REFORMS WILL BE AIMED AT REVAMPING THE STATE EMPLOYMENT AGENCY INCREASING LABOR MOBILITY AND INTRODUCING PARTTIME LABOR CONTRACTS AND APPRENTICESHIPS MEASURES INCLUDED A YEAR AGO IN AN ILLFATED PLAN TO BRING THE ECONOMY INTO CONVERGENCE WITH THE EUROPEAN COMMUNITY OTHER STRUCTURAL REFORMS WILL BE AIMED AT LIBERALIZING PROTECTED SERVICE SECTORS SUCH AS TELECOMMUNICATIONS AND TRANSPORT WHERE A LACK OF COMPETITION KEEPS PRICES HIGH HE SAID 9307090162 930709 WHO'S NEWS LIBERTY MUTUAL INSURANCE CO LIBERTY MUTUAL INSURANCE CO BOSTON HANS P ZIEGLER 52 YEARS OLD WAS NAMED PRESIDENT OF STEIN ROE & FARNHAM INVESTMENT COUNSEL AN INVESTMENT MANAGEMENT UNIT OF THIS INSURER'S STEIN ROE & FARNHAM INC MUTUAL FUND SUBSIDIARY HE SUCCEEDS MARSHALL B FRONT 55 WHO HAS ASSUMED NEW RESPONSIBILITIES WITH STEIN ROE & FARNHAM INC MR ZIEGLER HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PITCAIRN FINANCIAL MANAGEMENT GROUP IN JENKINTOWN PA STEIN ROE & FARNHAM HAS MORE THAN 29 BILLION IN ASSETS UNDER MANAGEMENT 9307090161 930709 MARKETING & MEDIA GROUP W AND VIACOM SWAP RADIO STATIONS IN TWO BIG MARKETS NEW YORK GROUP W RADIO AND VIACOM RADIO AGREED TO SWAP RADIO STATIONS IN THE HOUSTON AND WASHINGTON MARKETS MAKING GROUP W THE OWNER OF HOUSTON'S TWO LARGEST RADIO STATIONS IN EXCHANGE FOR THE NO 2 STATION IN HOUSTON KIKKAM/FM GROUP W RADIO GIVES VIACOM RADIO UNSPECIFIED CASH CONSIDERATION PLUS TWO STATIONS IN WASHINGTON CLASSIC ROCK STATION WCXRFM AND WCPTAM A NEWS STATION INDUSTRY EXECUTIVES BELIEVE THE CASH COMPENSATION IS ABOUT 20 MILLION GROUP W RADIO ALREADY OWNS HOUSTON'S NO 1 STATION KILT THE TWO STATIONS WHICH BOTH PLAY COUNTRY MUSIC WILL HAVE COMMON MANAGEMENT BUT SEPARATE ADVERTISING AND PROGRAMMING STAFFS A GROUP W SPOKESMAN SAID GROUP W RADIO IS A UNIT OF WESTINGHOUSE ELECTRIC CORP VIACOM RADIO IS A UNIT OF VIACOM INC THE TRANSACTION TAKES ADVANTAGE OF THE FEDERAL COMMUNICATIONS COMMISSION'S RECENTLY ADOPTED RULES ON SOCALLED DUOPOLIES WHICH PERMIT ONE COMPANY TO OWN TWO RADIO STATIONS ON THE SAME BAND IN A SINGLE MARKET 9307090160 930709 INTERNATIONAL TOP EXECUTIVES NAME CZECH REPUBLIC MOST ATTRACTIVE FOR FUTURE INVESTMENTS BY FREDERICK KEMPE AND CACILIE ROHWEDDER STAFF REPORTERS OF THE WALL STREET JOURNAL IT'S ONLY SIX MONTHS SINCE THE CZECH REPUBLIC'S VELVET DIVORCE FROM SLOVAKIA BUT NO OTHER COUNTRY OR REGION IN CENTRAL AND EASTERN EUROPE GETS A HIGHER VOTE OF CONFIDENCE ACCORDING TO A SURVEY OF SENIOR EXECUTIVES THE CZECH REPUBLIC IN MY OPINION IS THE MOST PROMISING PART OF EASTERN EUROPE FOR THE NEXT FIVE TO 10 YEARS SAYS GABOR VARSZEGI CHIEF EXECUTIVE OF FOTEX ONE OF HUNGARY'S MOST SUCCESSFUL COMPANIES MR VARSZEGI SAYS THE GOLDEN DAYS OF FOREIGN INVESTMENT IN HIS OWN COUNTRY ARE OVER FOTEX HAS DONE ALL IT CAN THERE EXPANDING FROM A FASTPHOTO OPERATION TO A DIVERSIFIED CONCERN CONTROLLING HALF OF HUNGARY'S RETAIL TRADE THROUGH ITS PRODUCTS AND THOSE IT DISTRIBUTES FOR SUCH WESTERN COMPANIES AS EASTMAN KODAK CO AND COLGATEPALMOLIVE CO SO HE SAYS FOTEX WILL LOOK ABROAD FOR THE LONG TERM MR VARSZEGI VIEWS THE RICH RUSSIAN MARKET AS A CHANCE TO TURN FOTEX INTO A TRULY MULTINATIONAL COMPANY BUT FOR NOW THE RISKS ARE TOO HIGH THAT'S WHERE THE CZECH REPUBLIC COMES IN THE CZECHS HAVE A CERTAIN HERITAGE OF DEMOCRACY ARE A NATURAL SUPPLIER OF GERMANY HAVE AN ACCEPTABLE INDUSTRY AND EUROPEAN BEHAVIOR MR VARSZEGI SAYS THE SURVEY POLLED EXECUTIVES ATTENDING THIS WEEK'S EUROPEAN CHAIRMEN'S SYMPOSIUM IN BERLIN IT WAS CONDUCTED BY MPG INTERNATIONAL ON BEHALF OF THE MEETING'S ORGANIZERS THE WALL STREET JOURNAL EUROPE AND THE GERMAN BUSINESS NEWSPAPER HANDELSBLATT WHEN ASKED WHICH FORMERLY SOCIALIST COUNTRY OF CENTRAL AND EASTERN EUROPE WOULD HAVE THE HEALTHIEST ECONOMY IN 20 YEARS THEY OVERWHELMINGLY PICKED THE CZECH REPUBLIC HALF OF THOSE POLLED WERE EXECUTIVES OF GERMAN COMPANIES BUT THEY PICKED THE SMALL COUNTRY OF 10 MILLION AHEAD OF EVEN THEIR OWN REGION OF FORMER EAST GERMANY AND FAR IN FRONT OF HUNGARY AND POLAND THE CZECH REPUBLIC PLACED ONLY FOURTH ON THEIR LIST OF INVESTMENT DESTINATIONS OVER THE PAST 18 MONTHS BUT IT ROSE TO SECOND IN TERMS OF INVESTMENT SIZE AND IT WAS FIRST WHEN RESPONDENTS WERE ASKED WHAT COUNTRY WOULD BE MOST ATTRACTIVE FOR FUTURE INVESTMENTS THE CZECHS WERE THE SIXTHWEALTHIEST NATION IN THE WORLD BEFORE WORLD WAR II SAYS STEVE LEVENE AN EXPERT ON THE REGION AT HAMBROS BANK LTD IN LONDON IT WAS WESTERN RICH BEAUTIFUL THAT'S WHY THEY'RE DEVELOPING A MARKET AND WESTERN TASTES MUCH QUICKER NOW THE COUNTRY IS ALSO MORE ATTRACTIVE FOR WESTERN MANAGERS TO LIVE IN MR LEVENE SAYS THAT'S AN IMPORTANT FACTOR IN A REGION WHERE LEAVING BUSINESSES TOTALLY TO LOCAL MANAGERS OFTEN FAILS TO PRODUCE RESULTS THE BULLISHNESS ON THE CZECH REPUBLIC MAY COME AS A SURPRISE TO THOSE WHO HAVE BEEN SCARED AWAY BY ITS OFTEN PLODDING BUREAUCRACY LEGAL ENTANGLEMENTS AND QUESTIONS OF PROPERTY OWNERSHIP ITS SEPARATION FROM SLOVAKIA MEANT GIVING UP EASY ACCESS TO RICH NATURAL RESOURCES AND THE UNCERTAINTIES PROMPTED MANY COMPANIES TO DROP BUSINESS PLANS ONE VICTIM WAS A 200MILLION INVESTMENT IN A TRUCK FACTORY BY MERCEDESBENZ AG A SUBSIDIARY OF THE GERMAN GIANT DAIMLERBENZ AG THE CZECH REPUBLIC IS WINNING PARTLY BY DEFAULT EASTERN GERMAN PRODUCTION COSTS ARE TOO HIGH THE BEST HUNGARIAN INVESTMENT OPPORTUNITIES HAVE PAST POLISH POLITICS AND WORKERS ARE TOO VOLATILE RUSSIAN AND UKRAINIAN MARKETS ARE STILL TOO RISKY OF THE CZECHS' CLOSEST COMPETITORS HUNGARY HAS A STRONG SERVICE INDUSTRY AND THE POLES ARE BETTER TRADERS BUT NEITHER CAN MATCH THE MIX OF CZECH MANUFACTURING TRADITION SKILLED WORKERS AND LOW LABOR COSTS IN THE SURVEY 70 OF THE EXECUTIVES LISTED COST REDUCTION AS ONE OF THEIR COMPANY'S TOP PRIORITIES RANKING IN FRONT OF CORPORATE RESTRUCTURING AND THE EXPANSION OF MARKETS INDEED WHILE HOURLY WAGES IN EASTERN GERMANY HAVE ALREADY REACHED 28 MARKS THEY ARE ROUGHLY ONEEIGHTH OF THAT IN THE CZECH REPUBLIC YET MORE THAN 47 OF THE EXECUTIVES POLLED CONSIDERED CZECHS TO BE THE BEST WORKERS IN THE REGION PLACING THEM FAR AHEAD OF EASTERN GERMANS 308 HUNGARIANS 154 POLES 138 AND RUSSIANS 108 NUMBERS TOTAL MORE THAN 100 BECAUSE OF MULTIPLE RESPONSES SO IT ISN'T SURPRISING THAT HANS BLAESER SHOULD HAVE DECIDED TO MANUFACTURE UNDERWEAR IN THE CZECH REPUBLIC MR BLAESER A BOARD MEMBER OF THE SOUTHERN GERMAN TEXTILE MAKER SCHIESSER AG MET IVAN SNIZEK THE HEAD OF THE CZECH COMPANY PLEAS AT A TRADE SHOW IN JAPAN IN THE SUMMER OF 1990 BY THE END OF 1991 HE WAS PRODUCING EIGHT MILLION PIECES OF UNDERWEAR AND PAJAMAS IN THE BOHEMIAN TOWN OF HAVLICKUVBROD THE TEXILE INDUSTRY IS A TRAVELING CIRCUS HE EXPLAINS IT FOLLOWS THE LOWEST WAGE COSTS WE COULDN'T COPE WITH THE COSTS IN GERMANY ANYMORE IN 20 YEARS' TIME WHICH CENTRAL/EASTERN EUROPEAN COUNTRY DO YOU THINK WILL HAVE THE HEALTHIEST ECONOMY NOTE FIGURES REPRESENT NUMBER OF SENIOR EXECUTIVES AT EUROPEAN CHAIRMEN'S SYMPOSIUM IN BERLIN WHO VOTED FOR EACH COUNTRY OR REGION 9307090159 930709 REVIEW & OUTLOOK EDITORIAL ASIDES THE PEROT POLL THE DEMOCRATIC LEADERSHIP CONFERENCE'S PEROT POLL ASKED ALL VOTERS IF THEY THOUGHT GOVERNMENT REGULATION OF BUSINESS USUALLY DOES MORE HARM THAN GOOD YES SAID 76 OF BUSH VOTERS 73 OF PEROT VOTERS AND 56 OF CLINTON VOTERS SOUNDS ABOUT RIGHT 9307090158 930709 AIR FRANCE EXPECTS A LOSS FOR THE YEAR CHAIRMAN TELLS PANEL PARIS AIR FRANCE CHAIRMAN BERNARD ATTALI TOLD A PARLIAMENTARY COMMITTEE THAT THE STATEOWNED CARRIER EXPECTS TO REMAIN IN THE RED IN 1993 FOLLOWING LAST YEAR'S LOSS OF 326 BILLION FRANCS 5641 MILLION APPEARING BEFORE THE NATIONAL ASSEMBLY'S FINANCE COMMISSION MR ATTALI DIDN'T GIVE A PRECISE ESTIMATE OF THE MAGNITUDE OF LOSSES HE EXPECTED ACCORDING TO COMMISSION MEMBERS JACQUES BARROT COMMISSION PRESIDENT SAID HE REVIEWED THE IMPORTANT EFFORTS HE HAS MADE TO BRING THE COMPANY BACK TO FINANCIAL HEALTH AND REQUESTED THAT THE GOVERNMENT LOOK FAVORABLY ON A RECAPITALIZATION OF THE COMPANY EARLIER THIS WEEK TRANSPORT AND TOURISM MINISTER BERNARD BOSSON INDICATED THAT AIR FRANCE WOULD SHOW LOSSES OF THREE BILLION TO FOUR BILLION FRANCS IN 1993 FOLLOWING MR ATTALI'S ADDRESS JACQUES GODFRAIN A MAJORITY POLITICIAN IN CHARGE OF TRANSPORTATION ISSUES TOLD JOURNALISTS THAT AIR FRANCE COULD POST LOSSES OF FIVE BILLION TO SIX BILLION FRANCS THIS YEAR IF THE SITUATION DOESN'T IMPROVE HE SAID THE AIRLINE COULD DISAPPEAR BY YEAR'S END MR GODFRAIN CALLING FOR QUICK ASSET SALES TO HELP COVER LOSSES SAID THE STATE CAN'T INDEFINITELY DOLE OUT TWO BILLION FRANCS EVERY SIX MONTHS HE SAID HE SUPPORTED A PRIVATIZATION OF THE GROUP'S AIR INTER SUBSIDIARY AS WELL AS THE SALE OF AIR FRANCE'S MERIDIEN HOTEL CHAIN AND SERVAIR INFLIGHTMEALS UNIT AN AIR FRANCE SPOKESWOMAN SAID THE COMPANY REFUSED TO COMMENT ON THE COMMISSION MEETING OR ON MR GODFRAIN'S REMARKS MR ATTALI HAS ARGUED THAT THE AIRLINE'S FORTUNES WILL TURN AS SOON AS THE WORLD ECONOMY PULLS OUT OF ITS SLUMP HE IS TRIMMING 5000 JOBS FROM THE COMPANY'S PAYROLL AS PART OF A RESTRUCTURING BUT INDUSTRY ANALYSTS HAVE SAID THE PLAN ONLY SCRATCHES THE SURFACE OF THE CARRIER'S INEFFICIENCIES 9307090157 930709 AMERICA WEST UNION VOTE PHOENIX AMERICA WEST AIRLINES SAID ITS EMPLOYEES VOTED NOT TO UNIONIZE UNDER THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS OF THE 1079 EMPLOYEES ELIGIBLE TO VOTE INCLUDING MECHANICS AND RELATED WORKERS 31 VOTED FOR UNION REPRESENTATION 9307090156 930709 WHO'S NEWS JAMESWAY CORP SAYS ARLIE LAZARUS QUITS AS CHAIRMAN AND CEO SECAUCUS NJ JAMESWAY CORP THE TROUBLED DISCOUNT RETAILER SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARLIE LAZARUS RESIGNED AFTER LESS THAN TWO MONTHS IN OFFICE FOR PERSONAL AND FAMILY REASONS MR LAZARUS 55 YEARS OLD WILL BE SUCCEEDED AS CHIEF EXECUTIVE BY JOSEPH ETTORE 54 WHO WILL RETAIN HIS POSITIONS AS PRESIDENT AND CHIEF OPERATING OFFICER HOWARD CURD A 54YEAROLD INVESTMENT BANKER MANAGING HIS OWN INVESTMENTS WILL SUCCEED MR LAZARUS AS CHAIRMAN IN ADDITION TO HIS DUTIES AS A DIRECTOR MR ETTORE WILL CONTINUE TO DIRECT THE COMPANY'S OPERATIONS WHILE MR CURD WILL OVERSEE THE COMPANY'S RESTRUCTURING MR LAZARUS COULDN'T BE REACHED FOR COMMENT ON HIS RESIGNATION MR CURD IS A TURNAROUND ARTIST THAT'S WHAT THEY NEED SAID EDWARD JOHNSON AN ANALYST AT JOHNSON REDBOOK SERVICE A DIVISION OF THE BROKERAGE FIRM LYNCH JONES & RYAN MR JOHNSON SAID THAT BY NAMING A FINANCE SPECIALIST AS WELL AS A RETAILER TO THE TWO POSITIONS JAMESWAY IS MOVING FORWARD IN A CONCRETE DIRECTION IT SHOULD MAKE THEIR CREDITORS FEEL BETTER MR LAZARUS HOLDS 161279 SHARES OF THE COMPANY'S COMMON STOCK JAMESWAY RECENTLY SAID IT WAS FACING LIQUIDITY DIFFICULTIES AND THAT TRADE VENDORS AND FACTORS HAD REDUCED THEIR AVAILABLE CREDIT SEPARATELY JAMESWAY REPORTED SALES FOR THE FIVE WEEKS ENDED LAST SATURDAY OF 748 MILLION DOWN 14 FROM 868 MILLION IN THE SAME PERIOD LAST YEAR SAMESTORE SALES FELL 6 SALES FOR THE 22 WEEKS ENDED LAST SATURDAY WERE 2926 MILLION OFF 13 FROM 3371 MILLION A YEAR EARLIER 9307090155 930709 WHO'S NEWS ALPHAREL INC ALPHAREL INC CAMARILLO CALIF CHAIRMAN ROBERT T BRUCE 57 YEARS OLD WAS CHOSEN TO BECOME CHIEF EXECUTIVE OFFICER AFTER THE ACQUISITION OF CLOSELY HELD OPTIGRAPHICS CORP IS COMPLETED HE SUCCEEDS ROGER H ERICKSON 37 AS CHIEF EXECUTIVE OFFICER MR ERICKSON REMAINS PRESIDENT ALPHAREL MAKES ELECTRONIC DOCUMENT IMAGING SYSTEMS 9307090154 930709 GIANT INDUSTRIES TO POST DOUBLING IN 2NDQUARTER NET BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL GIANT INDUSTRIES INC REFLECTING SUCCESS AT ITS REFINING OPERATIONS EXPECTS TO REPORT THAT SECONDQUARTER NET INCOME ROUGHLY DOUBLED TO BETWEEN 59 MILLION AND 65 MILLION OR 48 CENTS TO 53 CENTS A SHARE CHIEF OPERATING OFFICER FRED HOLLIGER SAID THE QUARTERLY EARNINGS WERE A RECORD FOR THE COMPANY MR HOLLIGER SAID A YEAR EARLIER GIANT INDUSTRIES HAD NET INCOME OF 31 MILLION OR 25 CENTS A SHARE THE SCOTTSDALE ARIZ COMPANY EXPECTS TO REPORT SECONDQUARTER REVENUE OF 82 MILLION TO 87 MILLION UP FROM 783 MILLION A YEAR EARLIER MR HOLLIGER SAID GIANT INDUSTRIES REFINES PETROLEUM PRODUCTS AND OPERATES SERVICE STATIONS IN THE SOUTHWEST THE EARNINGS WILL BE MUCH HIGHER THAN WALL STREET ANALYSTS' ESTIMATES OF 30 CENTS A SHARE I THINK THE ANALYSTS ARE FAILING TO RECOGNIZE THE CONTINUING STRONG REGIONAL MARKET CONDITIONS THAT WE HAVE EXPERIENCED MR HOLLIGER SAID OUR VOLUMES ARE EXCEPTIONALLY STRONG OUR PRICING IS ALSO EXCEPTIONALLY STRONG MR HOLLIGER NOTING THAT REFINERY SALES SET A RECORD FOR A SINGLE QUARTER SAID THE ESTIMATES MAY HAVE BEEN LOW BECAUSE MAJOR REFINERS IN PLACES SUCH AS THE GULF COAST HAVE SEEN PRICES ERODE BUT WE HAVEN'T SEEN THAT EROSION IN OUR MARKET HE SAID GIANT INDUSTRIES SAID SALES JUMPED ABOUT 6 TO ABOUT 26000 BARRELS A DAY UP FROM 25300 BARRELS A DAY A YEAR EARLIER THE EXECUTIVE PREDICTED THAT GIANT INDUSTRIES WOULD REPORT CONTINUED HIGH EARNINGS IN THE THIRD QUARTER IF THE MARKET OPERATES AS IT TYPICALLY DOES WE WOULD EXPECT TO BE OPERATING SOMEWHERE IN THE SAME RANGE AS WE HAVE THIS PAST QUARTER MR HOLLIGER SAID REFINING MARGINS WERE 7 TO 750 A BARREL IN THE SECOND PERIOD UP SHARPLY FROM THE 536 A BARREL A YEAR EARLIER MR HOLLIGER SAID BUSINESS IS PARTICULARLY HEALTHY IN ITS RETAIL OPERATIONS WHERE IT RUNS MORE THAN 40 SERVICE STATIONS HE SAID GASOLINESALES VOLUMES ARE UP 5 FROM A YEAR EARLIER MERCHANDISE SALES WHICH INCLUDE FOOD AND CIGARETTES ARE UP 15 FROM A YEAR EARLIER THE EXECUTIVE SAID THAT THE COMPANY HAS SIGNED A LETTER OF INTENT WITH A SMALL PRIVATELY HELD RETAILER TO ACQUIRE AS MANY AS 10 SERVICE STATIONS IN RURAL AREAS MR HOLLIGER WOULDN'T DISCLOSE THE NAME OF THE RETAILER OR THE ACQUISITION PRICE BUT HE SAID THAT TYPICALLY SERVICE STATIONS IN RURAL AREAS HAVE A GOOD RECORD OF RETURNING STRONG PROFITS 9307090153 930709 WHO'S NEWS ADVANCED PROMOTION TECHNOLOGIES INC ADVANCED PROMOTION TECHNOLOGIES INC POMPANO BEACH FLA H ROBERT WIENTZEN WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF ELECTRONIC MARKETING SERVICES FOR SUPERMARKETS MR WIENTZEN 53 YEARS OLD WAS MANAGER OF DIRECT MARKETING FOR PROCTER & GAMBLE CO HE SUCCEEDS DAVID R HUMBLE WHO HAD BEEN INTERIM PRESIDENT AND CHIEF EXECUTIVE IN APRIL JOHN H NEWHALL LEFT HIS POSTS AS PRESIDENT AND CHIEF OPERATING OFFICER OF ADVANCED PROMOTION TO RETURN TO HIS CONSULTING PRACTICE MR HUMBLE REMAINS CHAIRMAN 9307090152 930709 LETTERS TO THE EDITOR UNFAIR LURID ACCOUNT OF A WALL STREET PIONEER AS AN ATTORNEY FOR AND FRIEND OF THE BELL FAMILY FOR 13 YEARS I FEEL COMPELLED TO RESPOND TO YOUR MAY 11 PAGE ONE ARTICLE TRASHING DARRYL BELL AND DANIELS & BELL INC THE FIRST AND ONLY BLACK MEMBER FIRM OF THE NEW YORK STOCK EXCHANGE YOUR ARTICLE RELIED HEAVILY UPON OBVIOUSLY BIASED SOURCES QUOTING RESPECTIVELY THE HUSBAND SON AND LAWYERS FOR THE PARTIES WHO UNSUCCESSFULLY SUED DARRYL AND FAILED IN THEIR EFFORT TO REMOVE HIM AS EXECUTOR OF HIS FATHER'S ESTATE FOR GOOD MEASURE DISGRUNTLED FORMER EMPLOYEES WERE GIVEN THEIR CHANCE TO PAY BACK THE MAN WHO TO SALVAGE HIS FATHER'S EMPIRE WAS FORCED TO FIRE THEM YOUR SLANTED ARTICLE MINIMIZED THE CRITICAL POINT MADE BY THE COURT DARRYL BELL WON THE ESTATE LITIGATION AND WAS FOUND TO HAVE ACTED REASONABLY AND IN GOOD FAITH IN ALL RESPECTS YOUR LURID COVERAGE OF A PAINFUL CHAPTER IN THE HISTORY OF AFRICANAMERICAN PIONEERS DID A GREAT DISSERVICE TO THE CONTINUING EFFORTS TO ADVANCE MINORITIES IN AMERICA INCLUDING DARRYL'S ONGOING EFFORTS TO RESTORE DANIELS & BELL TO ITS ROLE AS THE PREMIER MINORITY FIRM ON WALL STREET IN TRUTH DANIELS & BELL FOUNDED DURING THE GREAT SOCIETY ERA HAD BECOME UNPROFITABLE DURING THE REAGAN ERA WHILE TRAVERS J BELL JR WAS STILL ALIVE FURTHERMORE COCOLINE CHOCOLATE BEGAN ITS INEXORABLE DECLINE IN 1986 FULLY TWO YEARS BEFORE TRAVERS BELL'S DEATH TRAVERS BELL'S PREBLACK MONDAY NET WORTH OF AN ESTIMATED 15 MILLION HAD ERODED BY THE TIME OF HIS JANUARY 1988 DEATH GIVEN SHARPLY LOWER POSTBLACK MONDAY VALUATION MEASURES THE REMAINING BALANCE OF THE ESTATE WAS REQUIRED TO PAY IRS OBLIGATIONS RELATING TO AN UNSUCCESSFUL COMPUTERLEASING INVESTMENT BY TRAVERS BELL YEARS BEFORE HIS DEATH SIMILARLY DARRYL BELL WAS A TEENAGER WHEN HIS FATHER INVESTED AND LOST HEAVILY IN FREEDOM NATIONAL BANK THUS DARRYL AND HIS COEXECUTOR TRAVERS J BELL SR INHERITED A DISASTER AND LABORED MIGHTILY BUT UNSUCCESSFULLY TO OVERCOME THE BURDEN OF DECISIONS MADE NOT BY THEMSELVES BUT BY TRAVERS BELL TRAVERS BELL JR WAS THE JACKIE ROBINSON OF WALL STREET AND WILL ALWAYS BE REMEMBERED AS A CHARISMATIC ENTREPRENEUR WHO BROKE THE COLOR BARRIER ON WALL STREET AS THE FUTURE WILL SHOW HIS SON DARRYL WHOM HE LOVED DEARLY GROOMED AS HIS SUCCESSOR AND NAMED HIS EXECUTOR HAS THE VERY SAME QUALITIES AND WILL TAKE HIS RIGHTFUL PLACE AS A LEADING FINANCIER I SUGGEST YOU REVISIT DARRYL BELL IN A FEW YEARS TO FOLLOW UP WITH A STORY TO TELL OF GREAT ACHIEVEMENTS 9307090151 930709 MANAGEMENT FIRMS USE CONTRACTS AND CASH TO PREVENT TALENT RAIDS BY DEPARTING EXECUTIVES BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL INFURIATED BY TALENT RAIDS STAGED BY DEPARTING EXECUTIVES MANY BIG COMPANIES ARE ERECTING ELABORATE NEW ANTIDEFECTION DEFENSES THE MOTIVE IS SELFPRESERVATION JOBHOPPING EXECUTIVES CAN WREAK CONSIDERABLE HAVOC BY RECRUITING TRUSTED LIEUTENANTS IT CAN BE TERRIBLE TO LOSE ONE EXECUTIVE BUT WHEN SEVERAL LEAVE A COMPANY CAN BE DEVASTATED SAYS JOSEPH BACHELDER A NEW YORK LAWYER AND EXECUTIVEPAY SPECIALIST TO PREVENT THAT A NUMBER OF COMPANIES ARE TAKING OUT THEIR GOLDEN HANDCUFFS AND ANYTHING ELSE THEY CAN TO CHAIN TOP PERFORMERS TO THE WALL NOTES DAVID B RADDEN A SENIOR VICE PRESIDENT WITH RECRUITERS PAUL R RAY & CO AT COMPAQ COMPUTER CORP FOR EXAMPLE EXECUTIVES FORFEIT SPECIAL PENSION PLANS IF THEY TRY TO RECRUIT TALENT WHEN THEY LEAVE AMERICAN EXPRESS CO HAS ESTABLISHED EMPLOYMENT AGREEMENTS FOR MANY EXECUTIVES THAT INCLUDE NONCOMPETE AND NONSOLICITATION AGREEMENTS AND PAINEWEBBER GROUP INC'S MONEYMANAGEMENT UNIT MITCHELL HUTCHINS INSTITUTIONAL INVESTORS INC RECENTLY GAVE STARS MORE MONEY TO SIGN EMPLOYMENT AGREEMENTS WHICH TIE THEM TO THE COMPANY FOR AT LEAST 18 MONTHS THE MITCHELL HUTCHINS CONTRACTS WERE DRAWN UP AFTER THE COMPANY'S PRESIDENT STEPHEN E CANTER LEFT IN APRIL TO JOIN KLEINWORT BENSON GROUP PLC NEARLY ONEQUARTER OF THE PORTFOLIO MANAGERS FOLLOWED AND MITCHELL HUTCHINS LOST SOME IMPORTANT ACCOUNTS AT GENERAL MOTORS CORP NEW ANTIDEFECTION DEFENSES WERE OCCASIONED BY THE DEPARTURE OF J IGNACIO LOPEZ DE ARRIORTUA HEAD OF GM'S EUROPEAN PURCHASING OPERATIONS IN MARCH MR LOPEZ BOLTED FOR VOLKSWAGEN AG AND TOOK ALONG SEVEN KEY MANAGERS IN THE AFTERMATH OF MR LOPEZ'S DEPARTURE AND RAID GM ACCELERATED THE IMPLEMENTATION OF A BONUS PLAN THAT WAS FIRST DEVELOPED LAST YEAR A SPECIAL COMMITTEE OF GM OUTSIDE DIRECTORS NOW DETERMINES HOW AND WHEN BONUSES ARE AWARDED TO ABOUT 500 TOP MANAGERS THE COMMITTEE CAN GRANT SAY 25 OF AN EXECUTIVE'S BONUS AT YEAR END AND THE BALANCE WHEN HE OR SHE RETIRES GM OFFICIALS DECLINE TO DISCLOSE SPECIFIC AMOUNTS AWARDED SO FAR BUT IT IS SAFE TO SAY THAT MANAGERS WHO PREMATURELY JUMP SHIP MAY FORFEIT MILLIONS OF DOLLARS IN BONUSES THAT MAKES IT NEARLY IMPOSSIBLE FOR A FORMER EXECUTIVE TO RECRUIT FORMER COLLEAGUES SAYS JUDITH FISCHER PUBLISHER OF EXECUTIVE COMPENSATION REPORTS A NEWSLETTER IN FAIRFAX STATION VA SIMILARLY MICRON TECHNOLOGY INC IN BOISE IDAHO SPREADS OUT ITS MANAGERS' ANNUAL BONUSES OVER FIVE YEARS THE ELECTRONICS MAKER CREATED THE PLAN IN 1985 TO KEEP EXECUTIVES FROM JOB HOPPING ANY EXECUTIVE WHO QUITS MICRON BEFORE RETIREMENT LOSES THE UNAWARDED PORTION OF THE BONUS COMPANY OFFICIALS SAY THAT THE PLAN WAS DEVELOPED TO KEEP TALENT MOTIVATED BUT IT ALSO HELPS TO PREVENT A BRAIN DRAIN TALENT RAIDS ARE HARDLY NEW IN CORPORATE AMERICA LEE IACOCCA CHRYSLER CORP'S RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER LURED DOZENS OF FORD MOTOR CO MANAGERS FOR MANY YEARS AFTER HE LEFT THE LATTER COMPANY IN 1978 ONE OF THE MOST SPECTACULAR RAIDING CASES HAPPENED IN 1988 AT LORD GELLER FEDERICO EINSTEIN A MAJOR ADVERTISING AGENCY IN NEW YORK HALF OF THE AGENCY'S MANAGEMENT TEAM WALKED OUT THE DOOR ONE DAY LEAVING NO ONE IN CHARGE THE EXECUTIVES WHO INCLUDED THE CHAIRMAN AND PRESIDENT SET UP A COMPETING AGENCY ACROSS THE STREET AND UNABASHEDLY BEGAN WOOING OTHER LORD GELLER EMPLOYEES BUT SUCH RAIDS SEEM TO BE OCCURRING MORE FREQUENTLY TODAY LARGELY BECAUSE THERE IS SO MUCH TURMOIL IN CORPORATE AMERICA WHEN AN OUTSIDE MANAGER GETS HIRED TO DEAL WITH SUCH PROBLEMS HE USUALLY WANTS SOMEONE HE HAS WORKED WITH IN THE PAST AND SOMEONE HE CAN TRUST SAYS JAY CONGER A HARVARD UNIVERSITY ASSOCIATE BUSINESS PROFESSOR ALSO PROF CONGER NOTES EXECUTIVES ARE CHANGING JOBS MORE OFTEN THAN THEY DID 10 YEARS AGO SOME EXECUTIVES STRONGLY BELIEVE THEY HAVE A RIGHT TO RECRUIT WHEN THEY ARE RACING AGAINST THE CLOCK TO FIX AILING COMPANIES EXECUTIVES MUST FIND THE BEST PEOPLE TO HELP MR IACOCCA SAYS MANY TIMES THAT'S AT THE COMPANY WHERE YOU WORKED BEFORE IT MAKES THEM REALLY MAD BUT THAT'S THE WAY BUSINESS IS SOME COMPANIES FIND THAT INTENSE NEGOTIATIONS AND COUNTEROFFERS CAN STEM A MANAGEMENT EXODUS RJR NABISCO HOLDINGS CORP FEARED FOR THE STABILITY OF ITS SENIOR MANAGEMENT WHEN ITS CHIEF EXECUTIVE OFFICER LOUIS V GERSTNER JR TOOK THE HELM OF INTERNATIONAL BUSINESS MACHINES CORP IN MARCH AND TRIED TO TAKE ALONG RJR'S CHIEF FINANCIAL OFFICER AND GENERAL COUNSEL RJR USED VICECHAIRMAN TITLES AND SWEETENED COMPENSATION TO BLOCK THE DEFECTIONS OF KARL VON DER HEYDEN ITS CHIEF FINANCIAL OFFICER AT THE TIME AND LAWRENCE RICCIARDI ITS GENERAL COUNSEL RJR BOARD MEMBERS ALSO PERSONALLY SPOKE WITH MR GERSTNER HE FINALLY DECIDED NOT TO TAKE THE TWO MEN APPARENTLY OUT OF A DESIRE TO MAINTAIN AMICABLE RELATIONS ACCORDING TO AN IBM OFFICIAL BUT MR GERSTNER DID SNATCH DAVID KALIS RJR'S SENIOR VICE PRESIDENT OF COMMUNICATIONS OTHER CORPORATIONS ARE ATTACHING PUNITIVE BAD BOY CLAUSES TO EXECUTIVES' COMPENSATION AGREEMENTS FOR INSTANCE COMPAQ'S CHIEF EXECUTIVE OFFICER ECKHARD PFEIFFER AND FOUR OTHER TOP EXECUTIVES COULD EACH LOSE MILLIONS IN BENEFITS AND A SPECIAL PENSION FUND IF THEY RECRUIT JUST ONE COMPAQ EMPLOYEE WHEN THEY LEAVE THE PERSONALCOMPUTER MAKER THE COMPANY SAYS IT DEVELOPED THE AGREEMENTS LAST YEAR TO GUARD BETTER AGAINST THE RECRUITING AND JOB SWITCHES THAT ARE SO PREVALENT IN THE COMPUTER AND SOFTWARE INDUSTRIES COMPANIES ARE TRYING TO MAKE IT AS PAINFUL AS POSSIBLE FOR FORMER EXECUTIVES TO STEAL EMPLOYEES EXPLAINS ALAN M JOHNSON A COMPENSATION CONSULTANT IN NEW YORK THE BEST WAY TO DO THAT IS TO PUT A VERY SIGNIFICANT AMOUNT OF MONEY ON THE TABLE PREVENTIVE MEASURES WORK BEST THAT IS WHY IBM RECENTLY DEVISED A STOCKOPTIONS SCHEME TO KEEP 1200 TOP MANAGERS THE PLAN LETS THESE MANAGERS SWAP OLD STOCK OPTIONS FOR NEW ONES BECAUSE OF IBM'S DEPRESSED STOCK PRICE MOST OF THESE OLD OPTIONS CAN'T CURRENTLY BE EXERCISED AT A PROFIT UNDER THE PLAN THE MANAGERS MUST WAIT TWO YEARS TO EXERCISE HALF OF THE OPTIONS AND ANOTHER TWO YEARS FOR THE REMAINDER IBM FIGURES THAT THE STOCK PLAN WILL PREVENT A TALENT EXODUS SUCH PRACTICES MAKE IT DIFFICULT FOR FORMER EXECUTIVES TO PRY LOOSE OTHER MANAGERS SAYS MATT WARD A LAWYER WITH WYATT CO A COMPENSATION CONSULTING FIRM COURTS OFFER BUSINESSES LITTLE HELP WHEN AN EXECUTIVE DOES ATTACK MANAGEMENT'S RANKS HOWEVER IN MAY GM LOST A GERMAN COURT FIGHT TO BAN MR LOPEZ FROM TAKING THE SEVEN MANAGERS TO VOLKSWAGEN GM HAD CLAIMED THAT ITS COMPETITIVE POSITION WOULD BE DAMAGED IF VOLKSWAGEN HIRED THEM PAINEWEBBER WITHDREW A SUIT IT HAD BROUGHT AGAINST MR CANTER LAST MONTH AFTER THE CONCERN FAILED TO FIND THAT THE MITCHELL HUTCHINS PRESIDENT HAD ACTED IMPROPERLY IT'S VERY DIFFICULT TO WIN THESE CASES SAYS FELICE EKELMAN A COMPENSATION LAWYER WITH JACKSON LEWIS SCHNITZLER & KRUPMAN A NEW YORK MANAGEMENTLAW FIRM THE CONSTITUTION PROTECTS US FROM SLAVERY PEOPLE HAVE A RIGHT TO WORK WHERE THEY WANT GABRIELLA STERN AND MICHAEL SICONOLFI CONTRIBUTED TO THIS ARTICLE STAGGERED BONUSES DOLE OUT BONUSES TO MANAGERS OVER A FIVEYEAR PERIOD TO HELP PREVENT DEFECTIONS MANAGERS LOSE UNAWARDED PORTION OF THEIR BONUSES WHEN THEY QUIT EMPLOYMENT/SEVERENCE AGREEMENTS ESTABLISH EMPLOYMENT AGREEMENTS FOR MANY EXECUTIVES THAT INCLUDE NONCOMPETE AND NONSOLICITATION AGREEMENTS PLACE SIMILAR RESTRICTIONS WHEN AWARDING SEVERENCE TO SOME EXECUTIVES 9307090150 930709 WHO'S NEWS HEALTHTRUST INC HEALTHTRUST INC NASHVILLE TENN MICHAEL A KOBAN JR 42YEAROLD SENIOR VICE PRESIDENT FINANCE WAS ELECTED A DIRECTOR OF THIS HEALTHCARE SERVICES COMPANY EXPANDING THE BOARD TO EIGHT MEMBERS 9307090149 930709 EURO DISNEY'S FISCAL 3RDQUARTER LOSS TO SPUR STUDY OF WOES BY US CONCERN BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL EURO DISNEY SCA POSTED A LARGERTHANEXPECTED LOSS FOR THE FISCAL THIRD QUARTER LEADING IT AND WALT DISNEY CO TO UNDERTAKE A STRATEGIC REEXAMINATION OF THE RESORT'S FINANCIAL STRUCTURE AND ITS FUTURE DEVELOPMENT DISNEY EXECUTIVES ACKNOWLEDGING THE DEPTH OF THE PROBLEMS AT THE RESORT OUTSIDE PARIS SAID THEY HAVE AGREED TO HELP FINANCE EURO DISNEY'S CAPITAL EXPANSION AND WORKING CAPITAL REQUIREMENTS THROUGH THE REVIEW PERIOD WHICH PROBABLY WILL LAST UNTIL THE SPRING THE EXECUTIVES DECLINED TO ANSWER ANY SPECIFIC QUESTIONS ABOUT THE LEVEL OF FUNDING THAT WALT DISNEY WILL PROVIDE TO ITS 49OWNED AFFILIATE THE LOSS FOR THE THIRD QUARTER ENDED JUNE 30 OF 500 MILLION FRENCH FRANCS 865 MILLION SENT EURO DISNEY SHARES TUMBLING 87 FRANCS OR 13 TO 595 FRANCS ON THE PARIS BOURSE VOLUME WAS HEAVY AT 14 MILLION SHARES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WALT DISNEY WAS UNCHANGED AT 3875 EURO DISNEY SAID ATTENDANCE WAS 31 MILLION IN THE QUARTER BUT VISITORS TO THE FRENCH PARK SPENT LESS THAN ANTICIPATED PER CAPITA ON FOOD AND MERCHANDISE HOTEL OCCUPANCY WAS ALSO BELOW EXPECTATIONS ANALYSTS HAVE CRITICIZED EURO DISNEY FOR PRICES FAR ABOVE LEVELS AT THE AMERICAN DISNEY PARKS ESPECIALLY IN THE FACE OF A EUROPEAN ECONOMIC DOWNTURN IN THE WAKE OF THE QUARTERLY LOSS A NUMBER OF FINANCIAL ANALYSTS IN EUROPE SHARPLY DOWNGRADED THEIR FORECASTS FOR EURO DISNEY'S YEAR ENDING SEPT 30 SOME DOUBLED THEIR FULLYEAR LOSS ESTIMATES WE ANTICIPATED THEY'D LOSE MONEY WE DIDN'T FIGURE THEY'D LOSE QUITE THIS MUCH SAID MARGO VIGNOLA A SECURITIES ANALYST AT SALOMON BROTHERS INC IN NEW YORK THEY ACTUALLY HAD A FAIR NUMBER OF VISITORS BUT THE PROBLEM IS PEOPLE AREN'T STAYING OVERNIGHT AT THE PARK AND THEY AREN'T SPENDING MUCH MONEY ON MERCHANDISE THERE EITHER BECAUSE THE RESORT DIDN'T OPEN UNTIL MIDAPRIL 1992 EURO DISNEY SAID THE LATEST FIGURES AREN'T COMPARABLE WITH THE YEARAGO QUARTER EURO DISNEY SAID IT EXPECTS A LOSS IN THE FOURTH QUARTER WHICH COVERS THE PEAK SUMMER SEASON THE THIRDQUARTER LOSS COMES ON TOP OF A 108 BILLION FRANC LOSS FOR THE FIRST HALF INDICATING A LOSS FOR THE FULL YEAR EURO DISNEY POSTED A LOSS OF 188 MILLION FRANCS FOR THE YEAR ENDED SEPT 30 EURO DISNEY EXECUTIVES SAID THAT THE WEAK RESULTS ARE KEEPING IT FROM PROCEEDING IMMEDIATELY WITH PLANS TO EXPAND THE RESORT INCLUDING PLANS FOR A SECOND GATE SIMILAR TO ITS DISNEYMGM STUDIOS MOVIETHEMED ATTRACTION AT WALT DISNEY WORLD IN ORLANDO FLA INITIALLY EURO DISNEY SET A SPRING 1996 TARGET AS THE OPENING FOR THAT THEME PARK IT SEEMS REASONABLE TO US TO BE PRUDENT FOR THE SHORT TERM EVEN IF WE AND WALT DISNEY CO REMAIN CONFIDENT IN THE LONG TERM SAID PHILIPPE BOURGUIGNON PRESIDENT OF EURO DISNEY DISNEY FIRST SUGGESTED THAT IT MIGHT AGREE TO MAKE CHANGES IN ITS FINANCIAL AGREEMENT WITH EURO DISNEY IN OCTOBER THE COMPANY'S AGREEMENT CURRENTLY CALLS FOR VARIOUS PERCENTAGES OF REVENUE AND OPERATING PROFIT TO FLOW BACK TO DISNEY RISING AS THE YEARS GO BY AND INCOME INCREASES IN EXPLAINING ITS PROBLEMS EURO DISNEY SAID THAT SPENDING PER VISITOR ON FOOD AND MERCHANDISE AT THE RESORT OUTSIDE PARIS WAS SIGNIFICANTLY BELOW EXPECTATIONS HOTEL OCCUPANCY WAS ALSO LOWER THAN ANTICIPATED EVEN THOUGH OCCUPANCY INCREASED 10 PERCENTAGE POINTS FROM LAST YEAR TO 685 IN THE QUARTER IN ADDITION FINANCIAL RESULTS WERE AFFECTED BY A CONTINUING HIGH LEVEL OF INTEREST LEASE AND DEPRECIATION CHARGES TOURISM IN FRANCE HAS BEEN HIT HARD BY THE ECONOMIC DOWNTURN IN WESTERN EUROPE AND BY THE DEVALUATIONS OF SEVERAL CURRENCIES EURO DISNEY ALSO SAID IT HASN'T REALIZED ANTICIPATED REVENUE FROM REALESTATE DEVELOPMENT BECAUSE THE MARKET HAS REMAINED DEPRESSED IN THE REGION MANY ANALYSTS SEE EURO DISNEY AS A WINNER IN THE LONG TERM BUT CAUTION THAT THE POOR EUROPEAN ECONOMY AND STARTUP TROUBLES MEAN THAT LOSSES COULD CONTINUE FOR THE NEXT COUPLE OF YEARS IF YOU LOOK AT THE WHOLE ENDEAVOR OVER A VERY LONG PERIOD OF TIME FIVE TO 10 YEARS IT STILL HAS THE POTENTIAL TO BE A MAJOR ASSET VALUE FOR DISNEY AND EURO DISNEY SAID HAROLD VOGEL AN ANALYST AT MERRILL LYNCH & CO IN NEW YORK IN TIME HE PREDICTS THE PLACE WHERE EURO DISNEY NOW SITS WILL BECOME MORE OF AN URBAN CENTER WITH OTHER OFFICE BUILDINGS AND ATTRACTIONS THAT WILL ENHANCE ITS VALUE ANALYSTS IN EUROPE SAID THEY REMAINED CONCERNED ABOUT HIGH TICKET PRICES AT THE PARK AND RATES AT THE HOTELS YET THIS PAST SPRING EURO DISNEY ANNOUNCED IT WOULD RAISE ITS ADMISSION RATES DURING THE PEAK SUMMER PERIOD BY 25 FRANCS TO A NEW LEVEL OF 250 FRANCS FOR ADULTS 43 AND 175 FRANCS 30 FOR CHILDREN EVEN THOUGH WALT DISNEY'S INITIAL INVESTMENT IN THE RESORT WAS LOW ONLY 160 MILLION MANY ANALYSTS' GROWTH PROJECTIONS OVER THE NEXT DECADE WERE PREMISED UPON A BIG UPSIDE POTENTIAL FROM EURO DISNEY THE EURO DISNEY RESORT ONE OF EUROPE'S LARGEST CONSTRUCTION PROJECTS OPENED 15 MONTHS AGO AT A COST OF 39 BILLION THE RESORT INCLUDES A THEME PARK WITH MANY OF THE RIDES FAMILIAR TO VISITORS AT ITS US PARKS AS WELL AS SIX HOTELS AND A CONNECTING SHOPPING ARCADE WHILE SOME PRAISED THE RESORT'S LAVISH CRAFTSMANSHIP SOME FRENCH INTELLECTUALS ATTACKED ITS USSTYLED COMMERCIALISM AS A CULTURAL CHERNOBYL THAT CONTROVERSY AND THE ECONOMY HAS LED TO DISAPPOINTING RESULTS RICHARD SIMON AN ANALYST AT GOLDMAN SACHS IN NEW YORK WHO HAS BEEN RECOMMENDING DISNEY STOCK SAID HE BELIEVES EURO DISNEY RESULTS WILL REDUCE DISNEY'S PRETAX EARNINGS BY 140 MILLION TO 145 MILLION THIS YEAR AND 70 MILLION TO 80 MILLION NEXT YEAR DISNEY HAD NET INCOME OF 8167 MILLION IN THE YEAR ENDED SEPT 30 IN THAT LIGHT IT HAS A NEGATIVE EFFECT ON DISNEY HE SAID BUT I STILL BELIEVE THAT DISNEY'S OTHER BUSINESSES ARE IN GOOD SHAPE I BELIEVE IN AN IRONIC WAY THAT EURO DISNEY WILL BENEFIT DISNEY'S INTERMEDIATETERM GROWTH SIMPLY BECAUSE IT SHOULD START LOSING LESS DISNEY IS ALSO IN THE PROCESS OF DECIDING WHETHER IT WILL BUILD A 3 BILLION RESORT IN SOUTHERN CALIFORNIA SURROUNDING DISNEYLAND IN ANAHEIM THE COMPANY ALSO HAS PROPOSED CONSTRUCTION OF A WATERTHEMED PARK NEXT TO TOKYO DISNEYLAND WHICH IS OWNED BY ORIENTAL LAND CO 9307090148 930709 SPI'S SPECTRADYNE UNIT RICHARDSON TEXAS SPECTRADYNE INC SAID IT SIGNED AN AGREEMENT TO EXTEND FOR SEVEN YEARS ITS CONTRACT WITH INTERSTATE HOTELS CORP TO PROVIDE PAYPERVIEW MOVIE SERVICES UNDER THE TERMS OF THE AGREEMENT THE SPI HOLDING INC UNIT WILL PROVIDE EXPANDED MOVIE AND INTERACTIVE VIDEO SERVICES TO PITTSBURGHBASED INTERSTATE WHICH MANAGES MORE THAN 15000 HOTEL ROOMS A SPOKESWOMAN FOR SPECTRADYNE WHICH PROVIDES INROOM MOVIES AT HOTELS AND MOTELS SAID SHE COULDN'T ESTIMATE THE VALUE OF THE CONTRACT EXTENSION BECAUSE IT DEPENDS UPON HOW FREQUENTLY THE VIDEO SERVICES ARE USED BY HOTEL GUESTS 9307090147 930709 SEC SUES EXOFFICER OF PAR PHARMACEUTICAL FOR INSIDER TRADING NEW YORK THE FALLOUT FROM THE SCANDALS AT PAR PHARMACEUTICAL INC CONTINUED AS THE SECURITIES AND EXCHANGE COMMISSION SUED A FORMER OFFICER OF THE GENERIC DRUG MAKER FOR INSIDER TRADING THE SEC IS SEEKING AN ORDER THAT RK PATEL WHO WAS SENIOR VICE PRESIDENT AND A DIRECTOR OF PAR TURN OVER 450000 IN ALLEGED INSIDER TRADING PROFITS THE SEC ALSO SEEKS AN ORDER BARRING MR PATEL FROM EVER SERVING AS THE OFFICER OF A PUBLIC COMPANY THE SEC ACTION STEMS FROM ALLEGATIONS THAT PAR SUBMITTED FALSE REPORTS TO THE FOOD AND DRUG ADMINISTRATION IN ORDER TO GET A DRUG APPROVED ALL TOGETHER NINE PEOPLE HAVE BEEN CONVICTED IN CONNECTION WITH THE SCANDAL WHICH ALSO INCLUDED BRIBING FDA OFFICIALS AMONG THOSE CONVICTED WAS MR PATEL WHO PLEADED GUILTY IN FEDERAL COURT IN BALTIMORE THIS YEAR TO CONSPIRACY TO DEFRAUD THE FDA THE COMPANY WHICH IS NOW UNDER NEW MANAGEMENT AS A UNIT OF PHARMACEUTICAL RESOURCES INC SPRING VALLEY NY WAS ALSO PREVIOUSLY CONVICTED IN TWO SEPARATE CRIMINAL CASES THE ATTORNEY FOR MR PATEL DID NOT RETURN A PHONE CALL SEEKING COMMENT ON THE SEC ACTION 9307090146 930709 LEISURE & ARTS ON SPORTS SAMPRAS AND THE ART OF SERVING BY FREDERICK C KLEIN ONE OF THE MYSTERIES OF TENNIS IS THAT THE STROKE THAT LOOKS THE EASIEST CAN BE ONE OF THE MOST DIFFICULT I MEAN THE SERVE THERE YOU ARE BALL IN HAND ABLE TO DIRECT YOUR SHOT ANYWHERE YOU WISH WITHIN THE 21FOOTBY13 1/2 FOOT SERVICE BOX AND AS HARD AS YOU'RE ABLE TO HIT IT SO WHY DO SO MANY PEOPLE HAVE WIMPY SERVES BECAUSE IT'S NOT AS EASY AS IT LOOKS IT'S A FAIRLY DIFFICULT FEAT OF COORDINATION SAYS JACK KRAMER THE PLAYER HAS TO TOSS THE BALL ABOVE HIS HEAD WITH ONE HAND AND HIT IT WITH THE RACQUET HELD IN THE OTHER HAND WITH A MOVEMENT THAT'S QUITE COMPLEX THE SERVES OF EVEN VERY GOOD PLAYERS GET OUT OF WHACK FROM TIME TO TIME I DIDN'T PHONE KRAMER PRIMARILY TO DISCUSS YOUR SERVE OR MINE I CALLED TO TALK ABOUT THE EXTRAORDINARY SERVING PERFORMANCE OF PETE SAMPRAS THE GANGLY LOOKING CALIFORNIAN IN WINNING THE JUSTCONCLUDED MEN'S SINGLES CHAMPIONSHIP AT WIMBLEDON SAMPRAS WHO IS 21 YEARS OLD ROLLED THROUGH ABOUT AS TOUGH A DRAW AS ANY WIMBLEDON TITLIST IN MEMORY IN SECURING HIS SECOND VICTORY IN A TENNIS MAJOR THE FIRST HAVING COME AT THE 1990 US OPEN WHEN HE WAS A TENDER 19 HIS LONDON VICTIMS INCLUDED BORIS BECKER A THREETIME CHAMP IN THAT PRECINCT AND ANDRE AGASSI AND JIM COURIER THE BEST RETURNERS OF SERVE EXTANT SAMPRAS'S FOURSET WIN OVER HIS REDHEADED CONTEMPORARY COURIER IN SUNDAY'S FINAL WAS ESPECIALLY IMPRESSIVE HE FIRED 22 ACES IN THAT ONE AND PERMITTED NOT A DEUCE POINT IN HOLDING HIS SERVE THROUGH THE FIRST TWO SETS EACH OF WHICH HE WON HE FALTERED A BIT TO LOSE SET THREE AND IN TEMPERATURES ABOVE 100 DEGREES ON THE BATTERED GREENSWARD OF THE ALLENGLAND CLUB'S CENTRE COURT SHOWED SIGNS OF FATIGUE BUT HIS SERVE RETURNED FULL FORCE IN THE FOURTH SET AND CARRIED HIM THROUGH WHEN YOU'RE GETTING 120 MILES AN HOUR ON YOUR FIRST SERVE AND 95 ON YOUR SECOND YOU DON'T HAVE TO MOVE TOO MUCH COURIER OBSERVED OF HIS FOE AFTERWARD IF I'M IN HIS SHOES WHEN I'M TIRED I'M GOING TO START FIRING BBS I'M NOT GOING TO GIVE THE OTHER GUY A CHANCE AND THAT'S WHAT HE DID BIG SERVES USUALLY EMANATE FROM BIG CANNONS BUT AT 6FOOT1 AND 170 POUNDS SAMPRAS IS FAR FROM THE LARGEST GUY AMONG THE TENNIS ELITE THUS MY CALL TO THE 72YEAROLD KRAMER HIS QUALIFICATIONS TO COMMENT ON THE SERVE IN GENERAL AND ON SAMPRAS'S IN PARTICULAR ARE SEVERAL AS THE WIMBLEDON CHAMPION OF 1947 AND THE US OPEN WINNER THAT YEAR AND THE YEAR BEFORE HE WAS ONE OF THE EARLIEST EXPONENTS OF THE SERVEANDVOLLEY BIG GAME AT WHICH SAMPRAS NOW EXCELS HE WAS TENNIS'S PROFESSIONAL CHAMPION IN AN ERA IN WHICH THAT TITLE WAS SECURED NOT IN A COUPLE DOZEN ANNUAL TOURNAMENTS BUT IN 100STOP TOURS THAT PITTED NO 1 AGAINST NO 2 AND AT TIMES GAVE LITERAL MEANING TO THE WORD BARNSTORMING HE WAS A LEADING PROMOTER OF THE SPORT AND STILL HEADS THE SOUTHERN CALIFORNIA TENNIS ASSOCIATION WHICH HAS ONE OF THE NATION'S MOST ACTIVE JUNIORDEVELOPMENT PROGRAMS FURTHERMORE KRAMER HAS KNOWN SAMPRAS SINCE HE WAS A RELATIVE TOT LEARNING THE GAME IN THE PALOS VERDES CALIF TENNIS CLUB THAT STILL BEARS KRAMER'S NAME I REMEMBER WHEN PETE WAS A TEENAGER AND CHANGED FROM A TWOHANDED BACKHAND TO A ONEHANDER KRAMER SAYS I REMEMBER THINKING WHAT A SMART MOVE THAT WAS BECAUSE IT MADE IT POSSIBLE FOR HIM TO DEVELOP THE NET GAME THAT COULD GIVE HIM AN EDGE OVER THE OTHER KIDS IT TURNED OUT THAT IT DID MUCH MORE FOR HIM THAN THAT KRAMER NOTES THAT WHILE TENNIS'S GEOMETRY FAVORS SUCH TALLTYPE BOOMERS AS MARC ROSSET 6FOOT7 RICHARD KRAJICEK 65 GORAN IVANISEVIC 64 AND MICHAEL STICH 64 GREAT HEIGHT IS NOT A PREREQUISITE FOR A POWER SERVICE THE OLDTIMERS WITH THE BEST SERVESBILL TILDEN ELLSWORTH VINES PANCHO GONZALES ME ALL WERE IN THE 6FOOT1 TO 63 RANGE SO PETE'S TALL ENOUGH HE SAYS WHAT COUNTS ISN'T SO MUCH HOW TALL YOU ARE BUT WHERE YOUR RACQUET MEETS THE BALL AND PETE'S EXTENSION IS EXCELLENT AND ANYWAY KRAMER GOES ON WHERE ONE HITS ONE'S SERVE OFTEN IS MORE IMPORTANT THAN HOW HARD WITH ALL THE 'THROW' THAT THE NEW LARGEFACE RACQUETS PROVIDE PLAYERS TODAY CAN HIT 'EM MORE THAN 130 MILES PER HOUR HE SAYS THAT'S A LOT FASTER THAN WE COULD IN THE WOODENRACQUET DAYS BACK WHEN WE WERE TOURING THEY TOOK PANCHO AND ME TO VILLANOVA UNIVERSITY AND TIMED OUR SERVES USING STROBE LIGHTS THEY CLOCKED PANCHO'S AT ABOUT 113 MILES PER HOUR AND MINE AT ABOUT 110 BUT WE SCORED PLENTY OF ACES AT THOSE SPEEDS BY VARYING OUR SPINS AND MOVING THE BALL AROUND AND WE WEREN'T SERVING AGAINST STATUES GOOD BALL MOVEMENT IS JUST AS IMPORTANT TODAY IT'S LIKE BASEBALL IT DOESN'T MATTER HOW HARD A PITCHER THROWSIF HE THROWS TO THE SAME SPOT EVERY TIME HE'S EVENTUALLY GOING TO GET HAMMERED THE THING THAT SAMPRAS DOES BEST IS DISGUISE HIS INTENTIONS ON HIS SERVE HIS TOSS IS THE SAME EVERY TIME WHETHER HE'S GOING WIDE OR DOWN THE MIDDLE AND HE HAS THAT LOVELY FLUID REPEATABLE MOTION THIRTEEN AND A HALF FEET THE SERVICEBOX WIDTH IS A LOT OF SPACE FOR AN OPPONENT TO COVER IF HE HAS NO CLUE WHERE TO JUMP UNTIL THE BALL'S BEEN STRUCK KRAMER SAYS THAT IF SAMPRAS IS SMART HE'LL TAKE SOME SPEED OFF HIS FIRST SERVE IN FUTURE TOURNEYS AND CONCENTRATE MORE ON PLACEMENT FIRSTSERVE SUCCESS RATES OF LESS THAN 60 COMMON FOR BIG HITTERS CAUSE A LOT OF WASTED ENERGY ON SECOND SERVES AND MISSED VOLLEY OPPORTUNITIES NO MATTER HOW GOOD A PLAYER'S SECOND SERVE IS AND PETE'S IS EXCELLENT HIS OPPONENT IS STILL GOING TO BE TAKING HIS FIRST SERVE TWO OR THREE FEET FARTHER BACK HE SAYS FOR A SERVEANDVOLLEYER THAT'S BIG FACTOR HE CONCLUDES I'VE BEEN SAYING FOR YEARS HOW AMERICAN TENNIS WOULDN'T BE BACK ON TOP UNTIL WE DEVELOPED MORE TOPFLIGHT SERVEANDVOLLEYERS BECAUSE OF THE EDGE THAT STYLE GIVES ON THE FAST COURTS AT WIMBLEDON AND THE US OPEN FINALLY WE HAVE PETE HE'S THE BEST WE'VE PRODUCED SINCE MCENROE AND HE HAS A BETTER ALLAROUND GAME AND IS A NICE KID TO BOOT SEEMS LIKE TOO MUCH TO EXPECT ALL AT ONCE 9307090145 930709 INDUSTRY FOCUS MANY INSURERS BET ON RIDING OUT THE REALESTATE SLUMP THEY SHUN FIRESALE APPROACH TO SHEDDING FORECLOSED COMMERCIAL UNITS BY GREG STEINMETZ AND MITCHELL PACELLE STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN IT COMES TO BEING SADDLED WITH BAD COMMERCIAL REALESTATE LOANS AND FORECLOSED PROPERTIES INSURANCE COMPANIES AREN'T ANY BETTER OFF THAN MANY BANKS BUT SO FAR INSURERS HAVE BEEN MORE RELUCTANT THAN BANKS TO UNLOAD THEIR SOURED REAL ESTATE IN ONE FELL SWOOP HARTFORDBASED TRAVELERS CORP RECENTLY BACKED AWAY FROM A PLAN TO POOL ITS BAD REAL ESTATE IN A SOCALLED BAD BANK THEN SPIN IT OFF FOR SALE TO INVESTORS MANAGEMENT SCRAPPED THE PLAN WHICH WAS PUT TOGETHER BY KIDDER PEABODY & CO BECAUSE IT WOULD HAVE REQUIRED TAKING FURTHER LOSSES ON ITS 2 BILLION PORTFOLIO OF FORECLOSED REAL ESTATE INSTEAD IT WILL SELL PROPERTIES PIECEMEAL OTHER INSURERS ALSO HAVE SHUNNED THE BULKSALE STRATEGY EMPLOYED DURING THE PAST YEAR BY SOME BIG BANKS SUCH AS BANKAMERICA CORP FIRST CHICAGO CORP AND NATIONSBANK ALTHOUGH INSURANCE COMPANIES HAVE STEPPED UP FORECLOSURE ACTION DURING THE PAST YEAR THEY ARE RELUCTANT TO SELL PROPERTIES AT 50 OF ORIGINAL BOOK VALUE AS HAVE SOME BANKS THEY INTEND TO HOLD THE PROPERTIES UNTIL PRICES RECOVER WE DON'T FEEL WE NEED TO TAKE A FIRESALE APPROACH SAID FRANK OLLARI A SENIOR VICE PRESIDENT FOR NEW YORK LIFE INSURANCE CO WHICH NOW HOLDS FORECLOSED PROPERTIES WITH AN ORIGINAL FACE VALUE OF 500 MILLION THAT WAITANDSEE ATTITUDE IS HELD BY SOME BANKS AS WELL CITICORP AND CHEMICAL BANKING CORP FOR EXAMPLE SAY THAT ONCE BANKS HAVE WRITTEN DOWN BAD ASSETS THEY SHOULD TRY TO GET THE BEST PRICE POSSIBLE WHICH OFTEN MEANS SELLING THE ASSETS INDIVIDUALLY RATHER THAN EN MASSE INSURERS HOWEVER ARE MORE LIKELY THAN BANKS TO AVOID BULK SALES IN PART BECAUSE THEY'RE BETTER ABLE TO CARRY THE DISTRESSED REAL ESTATE NEW YORK LIFE FOR ONE WILL TRY TO LEASE THE BUILDINGS ON WHICH IT HAS FORECLOSED AND SQUEEZE AS MUCH CASH OUT OF THEM AS POSSIBLE ALTHOUGH IT HAS SOLD SOME PROPERTIES THESE HAVE BEEN MOSTLY IN OBSCURE LOCATIONS MAKING THEM MORE DIFFICULT TO MANAGE DURING THE PAST FIVE YEARS INSURERS HAVE TAKEN BACK 191 BILLION IN COMMERCIAL PROPERTIES WITH A RECORD 662 BILLION BEING SEIZED LAST YEAR ACCORDING TO THE AMERICAN COUNCIL OF LIFE INSURANCE NO INDUSTRYWIDE FIGURES EXIST FOR HOW MUCH OF THE FORECLOSURED PROPERTY HAS BEEN SOLD THE 15 LARGEST INSURERS SOLD 195 BILLION OF PROPERTIES LAST YEAR MOST OF THEM ACQUIRED THROUGH FORECLOSURE ACCORDING TO TOWNSEND & SCHUPP A HARTFORDBASED INSURANCE CONSULTANT THOSE SAME INSURERS HAVE ANOTHER 78 BILLION OF FORECLOSED PROPERTY LEFT MOST INSURANCE COMPANIES HAVE TAKEN THE POSITION OF PLANNED DISPOSITION OF REAL ESTATE SAYS MICHAEL EVANS HEAD OF REAL ESTATE AT ERNST & YOUNG I DON'T THINK YOU'RE GOING TO BE ABLE TO BUY A LOT OF BARGAIN PORTFOLIOS THEY JUST DON'T HAVE TO DUMP IT THAT WILL COME AS A DISAPPOINTMENT TO THE INCREASING NUMBER OF INVESTORS WHO HAVE RAISED CAPITAL TO BUY POOLS OF DISTRESSED REAL ESTATE WITH THE SUPPLY OF ASSETS HELD BY THE RESOLUTION TRUST CORP DWINDLING AND BANKS SUCH AS CITICORP AND CHEMICAL RELUCTANT TO UNLOAD REAL ESTATE IN BULK INVESTORS HAVE HOPED THAT INSURANCE COMPANIES WOULD BEGIN DISGORGING LARGE POOLS OF ASSETS THE RELUCTANCE OF INSURERS TO DO SO SHOULD REINFORCE WHAT MANY REALESTATE EXPERTS SAY IS A BOTTOMINGOUT OF THE COMMERCIALPROPERTY MARKET FEW EXPERTS HOWEVER EXPECT PROPERTY VALUES TO RISE MUCH ANYTIME SOON THEY CITE LACKLUSTER ECONOMIC GROWTH AND A GLUT OF OFFICE SPACE YOU NEED JOBS TO FILL OFFICE BUILDINGS AND ABSORB THE SPACE SAID DENNIS YESKEY A CONSULTANT WITH KENNETH LEVENTHAL & CO INSURANCE COMPANIES ARGUE THAT THEY CAN AFFORD TO WAIT FOR ONE THING THEY HAVE THE CAPITAL TO ABSORB THE COSTS OF CARRYING PROPERTIES AND BECAUSE INSURANCE POLICIES ARE A LONGERTERM LIABILITY THAN BANK DEPOSITS INSURERS CAN WAIT LONGER TO GET THEIR MONEY OUT OF PROPERTIES INSURERS ARE ALSO FAR MORE EXPERIENCED THAN BANKS AT MANAGING PROPERTY EQUITABLE COS RUNS ONE OF THE NATION'S LARGEST PROPERTYMANAGEMENT COMPANIES HANDLING ITS OWN BUILDINGS AS WELL AS THOSE OF THIRD PARTIES PRUDENTIAL INSURANCE CO OF AMERICA TRAVELERS CIGNA CORP AND AETNA LIFE & CASUALTY CO ALSO HAVE SUBSTANTIAL PROPERTYMANAGEMENT ARMS MUTUAL OF NEW YORK ONE OF THE MOST AGGRESSIVE FORECLOSERS IN THE INDUSTRY HAS REPLACED HALF ITS REALESTATE LOAN OFFICERS WITH PEOPLE SKILLED AT RUNNING TROUBLED PROPERTIES IF YOU FORECLOSE YOU NEED TO HAVE PEOPLE TO MANAGE THE ASSETS SAID KENNETH LEVINE CHIEF INVESTMENT OFFICER AT THE COMPANY AT PRUDENTIAL THE NATION'S LARGEST INSURER THE PACE OF FORECLOSURES AT THE NEWARK NJ COMPANY IS ALSO PICKING UP LAST YEAR PRUDENTIAL TOOK BACK MORE THAN TWICE AS MUCH PROPERTY AS IT DID THE YEAR BEFORE RAISING ITS TOTAL PORTFOLIO OF SEIZED PROPERTIES TO 650 MILLION PRUDENTIAL WILL KEEP SOME OF THE FORECLOSURES FOR ITS OWN PORTFOLIO BUT MOST WILL BE PUT ON THE MARKET WITHIN A YEAR OR SO THE COMPANY SOLD 157 MILLION IN PROPERTIES LAST YEAR AND BELIEVES IT WILL SELL MORE THIS YEAR BECAUSE MORE BUYERS ARE ENTERING THE MARKET WE WILL SELL A LOT MORE PROPERTIES IN 1993 BECAUSE OF THE LIQUIDITY IN THE MARKET SAID RONALD RAYEVICH HEAD OF EQUITY INVESTMENTS FOR PRUDENTIAL'S REALESTATE GROUP THERE ARE RISKS OF COURSE TO HOLDING THE PROPERTIES GIVEN THE GLUT OF COMMERCIAL OFFICE SPACE THERE ARE NO GUARANTEES THAT VALUES WON'T ERODE FURTHER AND WHILE INSURERS WAIT FOR VALUES TO RECOVER THEY EARN MEAGER RETURNS ON THEIR PROPERTIES AND WRITE BIG CHECKS TO PAY FOR TENANT IMPROVEMENTS AND BUILDING MAINTENANCE GIVEN THE NEGATIVES ASSOCIATED WITH HOLDING PROPERTIES SOME EXPERTS QUESTION THE WISDOM OF HOLDING PROPERTIES THEY SAY INSURERS WOULD BE BETTER OFF SELLING THEM AT A LOSS AND PUTTING THE PROCEEDS TO WORK IN HIGHERYIELDING INVESTMENTS HOLDING THIS STUFF IS ONLY GOING TO BE MORE COSTLY THAN SELLING IT SAID DAVID BICK MANAGING DIRECTOR AT MANHATTAN CAPITAL PARTNERS A REALESTATE CONSULTING FIRM THEY SHOULD TAKE 50 CENTS ON THE DOLLAR OR WHATEVER THE RIGHT NUMBER IS AND UNLOAD IT 9307090144 930709 LEISURE & ARTS BOOKSHELF THE DEFECTOR WHO STAYED RED NOT DEAD BY WILLIAM M CARLEY WHEN ALEXANDER ORLOV PUBLISHED ARTICLES IN LIFE MAGAZINE IN 1953 REVEALING HOW STALIN'S PURGES HAD RESULTED IN THE MURDERS OF SOVIET BUREAUCRATS HE WAS HAILED AS THE HIGHEST RANKING SOVIET INTELLIGENCE AGENT EVER TO DEFECT TO THE WEST AFTER THE ARTICLES APPEARED ORLOV TESTIFIED BEFORE A RAPT SENATE SUBCOMMITTEE AND CONGRESS PASSED A SPECIAL BILL GRANTING HIM THE RIGHT TO LIVE PERMANENTLY IN THE US BUT ALEXANDER ORLOV WAS PLAYING A DOUBLE GAME ACCORDING TO DEADLY ILLUSIONS CROWN 538 PAGES 25 A BOOK BY JOHN COSTELLO AND OLEG TSAREV SOVIET DEFECTOR ORLOV WHILE FOCUSING ATTENTION ON STALIN AND HIS CRIMES WAS ALSO CONCEALING FROM US AUTHORITIES HIS KNOWLEDGE OF SCORES OF SOVIET AGENTS STILL WORKING AGAINST THE US AMONG THOSE AGENTS WERE KIM PHILBY AND ANTHONY BLUNT TWO OF THE NOTORIOUS CAMBRIDGE SPIES WHO PASSED BRITISH AND US SECRETS TO THE RUSSIANS IT WAS NOT UNTIL 1963 THAT PHILBY FLED TO MOSCOW AND BLUNT WAS UNMASKED BY BRITISH AUTHORITIES THE AUTHORS ARE ABLE TO REVEAL ORLOV'S DOUBLE GAME BECAUSE THE SOVIETS IN THE SPIRIT OF GLASNOST AND POLISHING THEIR IMAGE HAVE BEEN SELECTIVELY DISCLOSING INTELLIGENCE FILES INCLUDING ORLOV'S MR COSTELLO IS A BRITISH JOURNALIST WHO HAS WRITTEN ON INTELLIGENCE MATTERS BEFORE IN HIS WORK HE CONTACTED MR TSAREV A PUBLIC RELATIONS MAN FOR THE SOVIET INTELLIGENCE SERVICE IN MOSCOW AFTER MR COSTELLO AND MR TSAREV AGREED TO COLLABORATE MR TSAREV WAS ABLE TO GET DOSSIERS FROM THE SOVIET INTELLIGENCE SERVICE ARCHIVES MAKING THIS THE FIRST BOOK BASED ON SUCH ARCHIVES THE BOOK'S PUBLISHER SAYS INDEED A WHOLE SERIES OF BOOKS BASED LARGELY ON THE SOVIET ARCHIVES APPEARS TO BE IN THE WORKS MAKING THIS AN INTERESTING MOMENT IN THE HISTORY OF INTELLIGENCE THE QUESTION IMMEDIATELY CONFRONTING THE READER IS WHETHER THE SOVIETS FAMOUS FOR THEIR DISINFORMATION CAMPAIGNS IN THE PAST ARE STILL UP TO THEIR OLD TRICKS THEY COULD CREATE NEW AND FALSE ARCHIVE DOCUMENTS OR MERELY SELECTIVELY RELEASE THOSE THAT WOULD CREATE THE DESIRED IMPRESSION WHETHER THIS SORT OF THING IS GOING ON WE MAY NEVER KNOW TAKING THE ARCHIVE DOCUMENTS AT FACE VALUE AS QUOTED IN THE BOOK THEY PROVIDE SOME FASCINATING INSIGHTS INTO THE SOVIET INTELLIGENCE GAME IN ORLOV'S CASE THEY REVEAL THAT HE REMAINED LOYAL TO THE SOVIET INTELLIGENCE SERVICE TO THE END DESPITE HIS FAME AS A DEFECTOR TO THE US BORN INTO A JEWISH FAMILY IN BYELORUSSIA IN 1895 AND NAMED LEIBA FELDBIN THE MAN WHO BECAME FAMOUS UNDER THE ALIAS ORLOV JOINED THE RED ARMY AND BY 1920 WAS RUNNING GUERRILLA OPERATIONS AGAINST POLISH AND WHITE RUSSIAN TROOPS HE THEN JOINED THE CHEKA FORERUNNER OF THE SOVIET INTELLIGENCE SERVICE AND WAS EVENTUALLY POSTED TO PARIS WITH THE TASK OF PENETRATING FRENCH INTELLIGENCE A JOB IN WHICH HE FAILED IN 1934 ABOUT THE TIME SOVIET AGENTS WERE RECRUITING PHILBY DONALD MACLEAN AND GUY BURGESS AS SPIES ORLOV WAS SENT TO LONDON TO OVERSEE SOVIET ESPIONAGE IN ENGLAND BY JUNE OF THE NEXT YEAR THE ORLOV DOSSIER DISCLOSES ORLOV HAD ALL THREE MEN ON HIS PAYROLL EACH GETTING 10 OR 12 A MONTH TO BETRAY THEIR COUNTRY ORLOV WAS SUBSEQUENTLY POSTED TO SPAIN AS THE TOP SOVIET AGENT ON THE SIDE OF THE REPUBLICANS THEN LOCKED IN CIVIL WAR AGAINST GEN FRANCO ORLOV RAN GUERRILLA CAMPAIGNS AGAINST FRANCO'S FORCES AND HELPED EXTERMINATE THOSE WHO WEREN'T LOYAL ENOUGH TO THE REPUBLICANS THE SOVIET ARCHIVES INDICATE IN 1938 FEARING STALIN'S PURGE WAS FOCUSING ON HIM ORLOV CLEANED OUT HIS SAFE IN BARCELONA AND WITH HIS WIFE AND DAUGHTER FLED TO FRANCE CANADA AND FINALLY THE US HE HAD BEEN THE EQUIVALENT OF A GENERAL IN SOVIET INTELLIGENCE FEARFUL THAT STALIN'S MEN WOULD TRY TO KILL HIM EVEN IN THE US ORLOV AND HIS FAMILY SPENT THE NEXT 14 YEARS AS FUGITIVES THEY USED NUMEROUS ALIASES MOVED FROM CITY TO CITY AND LIVED FRUGALLY AT LAST NEARLY OUT OF MONEY ORLOV WROTE HIS ARTICLES FOR LIFE LATER EXPANDED INTO A BOOK AND COLLECTED HANDSOME FEES THE FEDERAL BUREAU OF INVESTIGATION WHICH FIRST FOUND OUT THAT THERE WAS A SOVIET INTELLIGENCE GENERAL IN THE US BY READING IT IN LIFE HASTENED TO QUESTION HIM BUT FRUSTRATED FBI AGENTS WERE NEVER ABLE TO PRY OUT OF THE GENERAL HIS KNOWLEDGE OF SOVIET ESPIONAGE INCLUDING THE IDENTITIES OF SOME 60 SPIES NOR DID STALIN'S HENCHMEN TRY TO KILL HIM THE ARCHIVES DISCLOSE BECAUSE ORLOV WROTE A LETTER TO THE SOVIETS SHORTLY AFTER HIS DEFECTION THREATENING TO REVEAL THE SOVIET AGENTS IF ANY ATTEMPTS WERE MADE ON HIS LIFE ORLOV DIED OF NATURAL CAUSES IN 1973 A SECRETIVE COMMUNIST TILL THE END OUTFITTED WITH A MULTITUDE OF APPENDIXES AND COPIOUS NOTES DEADLY ILLUSIONS IS FAR TOO LONG AND REHASHES SOME MATERIAL PUBLISHED IN EARLIER BOOKS BUT FOR STUDENTS OF THE ESPIONAGE GAME A CHANCE TO PEEK AT THE SOVIET ARCHIVES IS ALMOST IRRESISTIBLE MR CARLEY WRITES ON INTELLIGENCE FOR THE JOURNAL 9307090143 930709 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 ARISTAR INC 150 MILLION OF NOTES DUE JULY 15 1998 PRICED AS 575S AT 99846 TO YIELD 5786 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 074 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS ARISTAR IS A UNIT OF GREAT WESTERN FINANCIAL CORP CHASE MANHATTAN CORP 150 MILLION OF SUBORDINATED NOTES PRICED TO FLOAT QUARTERLY AT A SPREAD OF 0125 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE ACCORDING TO MCM CORPORATEWATCH THE NOTES HAVE AN INITIAL COUPON AND FLOOR OF 435 AND NO CAP THREEMONTH LIBOR IS CURRENTLY 3312 THE NOTES DUE JULY 15 2003 ARE NONCALLABLE RATED BAA2 BY MOODY'S INVESTORS SERVICE AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO COMMONWEALTH EDISON CO 100 MILLION OF FIRST MORTGAGE BONDS DUE JULY 15 2000 PRICED AS 6375S AT 99916 TO YIELD 639 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 095 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE JULY 15 1998 PRICED AT PAR TO YIELD 524 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR ONE YEAR THE ISSUE WAS PRICED AT A SPREAD OF 018 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MARSHALL & ILSLEY CORP 100 MILLION OF NOTES DUE JULY 15 2003 PRICED AS 6375S AT 99351 TO YIELD 6464 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MARY KAY CORP 55 MILLION OF 1025 SENIOR NOTES DUE 2000 ACCORDING TO THE COMPANY PROCEEDS ARE TO BE USED TO REDEEM 15 DISCOUNT DEBENTURES DUE 2000 PNC BANK 500 MILLION OF BANK NOTES DUE JULY 15 1994 PRICED INITIALLY AT PAR TO YIELD 355 ACCORDING TO MCM CORPORATEWATCH RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PNC BANK IS A UNIT OF PNC FINANCIAL CORP SOUTHERN CALIFORNIA EDISON 225 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JULY 15 2025 WON IN COMPETITIVE BIDDING BY A GROUP OF UNDERWRITERS LED BY LEHMAN BROTHERS ACCORDING TO MCM CORPORATEWATCH THEY WERE REOFFERED AS 7125S AT 967 TO YIELD 7395 REPRESENTING A NET INTEREST COST TO THE COMPANY OF 7424 NONCALLABLE FOR 10 YEARS THE ISSUE WAS REOFFERED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P SOUTHERN CALIFORNIA EDISON IS A UNIT OF SCE CORP STUDENT LOAN MARKETING ASSOCIATION 600 MILLION OF NOTES DUE JULY 19 1996 PRICED TO FLOAT WEEKLY AND PAY QUARTERLY AT 015 PERCENTAGE POINT ABOVE THE THREEMONTH TREASURY BILL ACCORDING TO MCM CORPORATEWATCH TEXAS UTILITIES ELECTRIC CO 500 MILLION THREEPART ISSUE OF FIRST MORTGAGE BONDS PRICED THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 150 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 1998 WAS PRICED AS 575S AT 99767 TO YIELD 5806 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 2005 WAS PRICED AS 675S AT 9975 TO YIELD 6782 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 098 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE THIRD PART CONSISTING OF 250 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 2025 WAS PRICED AS 7625S AT 97763 TO YIELD 7817 NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 112 PERCENTAGE POINTS ABOVE THE TREASURY 30YEAR BOND THE ISSUES ARE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P TEXAS UTILITIES ELECTRIC IS A UNIT OF TEXAS UTILITIES CO AGNICOEAGLE MINES LTD 43 MILLION COMMON SHARES PRICED AT 11 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TITAN HOLDINGS INC INITIAL PUBLIC OFFERING OF 31 MILLION SHARES AT 10 APIECE MANAGED BY A GROUP LED BY RAS SECURITIES CORP UNITED DOMINION REALTY TRUST INC 53 MILLION COMMON SHARES PRICED AT 1350 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PRINCE WILLIAM COUNTY VA 1312 MILLION SERIES 1993C GENERALOBLIGATION PUBLIC IMPROVEMENT AND REFUNDING BONDS PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 32 IN 1995 TO 5375 IN 2013 AND 2014 THE BONDS HAVE DOUBLEA RATINGS FROM MOODY'S S&P AND FITCH INVESTORS SERVICE INC ST LOUIS MUNICIPAL FINANCE CORP 1454 MILLION SERIES 1993A LEASEHOLD REVENUE REFUNDING BONDS PRICED BY A PRUDENTIAL SECURITIES INC GROUP YIELDS RANGE FROM 25 IN 1993 TO 625 FOR ZERO COUPON BONDS DUE IN 2013 AND 2014 MOODY'S HAS RATED THE ISSUE DOUBLEA3 AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993139 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 ARGENTINA SOVEREIGN 150 MILLION OF 6875 EUROBONDS DUE AUG 2 1996 PRICED AND REOFFERED AT 9996 TO YIELD 689 A MARGIN OF 255 BASIS POINTS OVER THE COMPARABLE US TREASURY NOTE FEES 0875 POINT ALSO 100 MILLION OF 825 EUROBONDS DUE AUG 2 2000 PRICED AND REOFFERED AT 997385 TO YIELD 83 A MARGIN OF 286 BASIS POINTS OVER THE COMPARABLE US TREASURY NOTE FEES ONE POINT BOTH TRANCHES VIA LEHMAN BROTHERS INTERNATIONAL AND CHASE INVESTMENT BANK BANK OF GREECE GREECE ONE BILLION FRENCH FRANCS OF EUROBONDS DUE AUG 25 1998 AS 75S AT ISSUE AND FIXED REOFFER PRICE OF 99355 VIA BANQUE NATIONAL DE PARIS AND CREDIT LYONNAIS YIELD 766 A MARGIN OF 140 BASIS POINTS ABOVE THE FRENCH TREASURY NOTE FEES 04 POINT CAISSE FRANCAISE DE DEVELOPEMENT FRANCE 125 MILLION SWISS FRANCS OF 4375 PUBLIC BONDS DUE AUG 12 1998 PRICED AT 10225 VIA CREDIT SUISSE FEES 1625 POINTS DENMARK SOVEREIGN 200 MILLION CANADIAN DOLLARS OF 6625 EUROBONDS DUE JULY 30 1997 PRICED AT 10088 VIA KIDDER PEABODY SECURITIES CO REOFFERED AT 9948 TO YIELD 678 A MARGIN OF 40 BASIS POINTS ABOVE CANADIAN GOVERNMENT NOTE FEES 1625 POINTS DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK GERMANY 150 BILLION ITALIAN LIRE OF 925 EUROBONDS DUE AUG 6 1998 PRICED AT 101775 VIA JP MORGAN SECURITIES LTD AND BANCA EUROMOBILIARE SPA YIELD 928 FEES 1875 POINTS GRUPO IRSA MEXICO 150 MILLION OF 8375 EUROBONDS DUE JULY 15 1998 PRICED AND REOFFERED AT 99497 VIA LEAD UNDERWRITER GOLDMAN SACHS INTERNATIONAL LTD YIELD 85 A MARGIN OF 3445 BASIS POINTS ABOVE THE COMPARABLE US TREASURY NOTE GUARANTEED BY DESC SOCIADA DI FONMET FEES 0875 POINT IMMUNO FINANCE LTD SWISS PARENT 75 MILLION SWISS FRANCS OF 35 PRIVATELY PLACED CONVERTIBLE NOTES DUE AUG 3 1998 PRICED AT PAR VIA UNION BANK OF SWITZERLAND CONVERSION PERIOD FROM AUG 16 1993 TO AUG 3 1998 DURING WHICH TIME 5000 SWISS FRANCS CAN BE CONVERTED INTO FIVE BEARER SHARES OF THE IMMUNO INTERNATIONAL AG THE CONVERSION PREMIUM IS 1875 LADBROKE GROUP PLC UK 125 MILLION OF 8875 EUROBONDS DUE AUG 11 2003 PRICED AT 100658 VIA BARCLAYS DE ZOETE WEDD REOFFERED AT 99083 TO YIELD 127 BASIS POINTS OVER THE UK GILT FEES TWO POINTS NATIONAL BANK OF HUNGARY HUNGARIAN AGENCY 100 MILLION OF 10 EUROBONDS DUE AUG 5 2003 PRICED AT 9766 VIA JP MORGAN SECURITIES LTD YIELD 1039 A MARGIN OF 260 BASIS POINTS ABOVE THE COMPARABLE UK GILT FEES 15 POINTS OESTERREICHISCHE POSTPARKASSE AUSTRIAN AGENCY 150 BILLION ITALIAN LIRE OF 955 EUROBONDS DUE AUG 6 2003 PRICED AT 101875 VIA BANCA COMMERCIALE ITALIA YIELD 957 FEES TWO POINTS ONTARIO CANADIAN PROVINCE C125 BILLION OF 775 GLOBAL BONDS DUE DEC 8 2003 AT ISSUE AND FIXED REOFFER PRICE OF 98125 VIA MERRILL LYNCH INTERNATIONAL LTD NOMURA INTERNATIONAL PLC RBC DOMINION SECURITIES INTERNATIONAL LTD AND WOOD GUNDY INC YIELD 801 A MARGIN OF 70 BASIS POINTS OVER CANADIAN GOVERNMENT NOTE FEES 035 POINT SOCIETE GENERALE ACCEPTANCE NV FRENCH PARENT 500 MILLION FRENCH FRANCS OF 618 EUROBONDS DUE AUG 3 2001 PRICED AT PAR VIA SOCIETE GENERALE REOFFERED AT 9950 TO YIELD 626 CONDITIONAL PUT OPTIONS EXERCISABLE IF PREVAILING YIELD ON 85 FRENCH TREASURY NOTE DUE 2002 RISES ABOVE 105 EXERCISABLE AUG 3 1995 AT 985 AUG 3 1997 AT 99 AND AUG 3 1999 AT 995 OBSERVATION PERIOD EVERY THREE MONTHS FOR LAST 18 MONTHS BEFORE EACH PUT OPTION DATE FEES ONE POINT SOCIETE QUEBECOISE D'ASSAINISSEMENT DES EAUX CANADA C125 MILLION OF 8125 EUROBONDS DUE AUG 11 2003 PRICED AT 100544 VIA SCOTIA MCLEOD INC REOFFERED AT 98894 TO YIELD 829 A SPREAD OF 80 BASIS POINTS ABOVE CANADIAN GOVERNMENT NOTE GUARANTEED BY THE PROVINCE OF QUEBEC FEES TWO POINTS 9307090142 930709 LAW KEATING IS GIVEN 12 1/2YEAR SENTENCE FOR BANK FRAUD BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES CHARLES H KEATING JR THE FORMER OPERATOR OF LINCOLN SAVINGS & LOAN ASSOCIATION AND UNWILLING SYMBOL OF THE PAST DECADE'S THRIFT CRISIS WAS SENTENCED TO 12 1/2 YEARS IN PRISON FOR BANK FRAUD THE PENALTY WILL RUN CONCURRENTLY WITH A 10YEAR SENTENCE THAT MR KEATING HAS BEGUN SERVING FOR RELATED STATE SECURITIESFRAUD CRIMES AS A PRACTICAL MATTER THE FEDERAL SENTENCE EXTENDS HIS TIME BEHIND BARS BY ABOUT FIVE YEARS FOR A TOTAL OF 10 YEARS BECAUSE OF ANTICIPATED CREDIT FOR GOOD BEHAVIOR THE TERM WAS LESS THAN THE 25 TO 30 YEARS REQUESTED BY PROSECUTORS BUT MORE THAN THE MINIMUM REQUIRED BY FEDERAL SENTENCING GUIDELINES IN EXPLAINING THE SENTENCE US DISTRICT JUDGE MARIANA PFAELZER SAID MR KEATING'S WRONGDOING WAS STAGGERING IN ITS PROPORTIONS SHE ALSO ORDERED HIM TO PAY 1224 MILLION IN RESTITUTION TO THE GOVERNMENT MR KEATING HAS SAID HE IS INSOLVENT RISING TO HEAR HIS PENALTY PRONOUNCED IN FEDERAL COURT HERE THE 69YEAROLD FORMER EXECUTIVE APPEARED THIN AND RUDDYFACED AND SHOWED NO REACTION TO THE SENTENCE HE DECLINED AN OPPORTUNITY TO MAKE A STATEMENT IN HIS OWN BEHALF BEFORE THE SENTENCE WAS ISSUED BUT MR KEATING HAS REMAINED UNREPENTANT AND VOCAL IN OTHER FORUMS IN A COLUMN PUBLISHED JULY 4 IN THE ARIZONA REPUBLIC HE WROTE THAT GOVERNMENT LAWYERS HAD CREATED A FICTITIOUS CHARLIE KEATING' WHOM THEY THEN DESTROYED THE REAL CHARLIE KEATING HE SAID BROUGHT CAPITAL QUALITY DEVELOPMENTS AND JOBS TO THE PEOPLE OF ARIZONA THE FORMER CHAIRMAN OF LINCOLN'S PARENT COMPANY HAS SPENT THE PAST 15 MONTHS IN PRISON INITIALLY AT THE OVERCROWDED CALIFORNIA MEN'S COLONY IN SAN LUIS OBISPO AND THEN IN NEWER MORE COMFORTABLE FEDERAL FACILITIES IN LOS ANGELES AND TUCSON ARIZ PENDING THE FEDERAL TRIAL AND SENTENCING JUDGE PFAELZER DECLINED TO RULE ON WHETHER HE WOULD REMAIN IN TUCSON STATE PROSECUTORS IN A LETTER TO THE JUDGE SEVERAL WEEKS AGO REQUESTED THAT MR KEATING BE RETURNED TO CALIFORNIA PRISON TO COMPLETE HIS STATE SENTENCE MR KEATING'S LAWYER STEPHEN C NEAL CONTENDED THAT THE FORMER PHOENIX FINANCIER SHOULD BE ALLOWED TO REMAIN IN FEDERAL PRISON GIVEN HIS AGE AND HIS HISTORY OF HEALTH PROBLEMS HE SAID A DOCTOR'S REPORT INDICATED MR KEATING WAS SUFFERING FROM MALNOURISHMENT AND EXHAUSTION IN STATE PRISON MR KEATING AN AVID SWIMMER REPORTEDLY ENJOYS POOL PRIVILEGES AND OTHER BENEFITS IN TUCSON HIS FAMILY LIVES NEARBY MR KEATING FORMER CHAIRMAN OF THE CALIFORNIABASED LINCOLN'S PARENT COMPANY WAS CONVICTED IN JANUARY ON MULTIPLE RACKETEERING AND FRAUD CHARGES THAT RESULTED FROM A WIDERANGING FEDERAL INDICTMENT IN A TWOMONTH TRIAL THAT BEGAN LAST FALL IN FEDERAL COURT HERE US PROSECUTORS PROVED THAT MR KEATING SET UP UNLAWFUL SCHEMES TO SUCK DEPOSITORS' FEDERALLY INSURED MONEY OUT OF LINCOLN FOR HIS OWN BENEFIT ALSO CONVICTED FOR RELATED FEDERAL CRIMES IN JANUARY WAS HIS SON CHARLES KEATING III A FORMER EXECUTIVE VICE PRESIDENT OF LINCOLN'S PHOENIXBASED PARENT AMERICAN CONTINENTAL CORP SENTENCING FOR THE YOUNGER MR KEATING WHO IS FREE ON BAIL HAS BEEN SCHEDULED FOR JULY 23 THE STATE CONVICTIONS STEMMED FROM A SEPTEMBER 1990 INDICTMENT THAT FOCUSED MORE NARROWLY ON FALSE STATEMENTS MADE DURING THE SALE OF HIGHRISK BONDS OF AMERICAN CONTINENTAL AT LINCOLN OFFICES THE PARENT COMPANY'S JUNK BONDS BECAME WORTHLESS IN APRIL 1989 WHEN THE COMPANY FILED FOR FEDERAL BANKRUPTCYLAW PROTECTION FROM CREDITORS AND LINCOLN WAS SEIZED BY FEDERAL REGULATORS THE COST TO TAXPAYERS OF LINCOLN'S FAILURE WAS ESTIMATED TO BE 26 BILLION HOLDERS OF THE AMERICAN CONTINENTAL BONDS MANY OF THEM ELDERLY LOST 288 MILLION IN COURT AFTER THE SENTENCING MR NEAL SAID I DON'T THINK THE SENTENCE IS JUSTIFIED AND I DON'T THINK THE VERDICT WAS JUSTIFIED PROSECUTORS SAID THEY WERE PLEASED WITH THE PENALTY JUSTICE WAS SERVED SAID ASSISTANT US ATTORNEY ALICE HILL 9307090141 930709 INTERNATIONAL EUROPE'S RECESSION STALLS PRIVATIZATION IN EAST GERMANY AGENCY'S CHIEF SAYS BY AUDREY CHOI AND FREDERICK KEMPE STAFF REPORTERS OF THE WALL STREET JOURNAL BERLIN THE PRESIDENT OF THE TREUHANDANSTALT THE AGENCY IN CHARGE OF PRIVATIZING FORMER EAST GERMANY'S INDUSTRY SAYS EUROPE'S ECONOMIC DOWNTURN HAS FORCED HER TO ABANDON PLANS TO WIND UP THE AGENCY'S OPERATIONS BY YEAR'S END AND THIS TIME BIRGIT BREUEL PRESIDENT OF THE TREUHAND ISN'T GIVING ANY FIRM COMMITMENTS FOR WHEN SHE CAN CLOSE THE AGENCY AND HAND OVER THE 40000 INVESTMENT CONTRACTS IT HAS ARRANGED TO A SUCCESSOR INSTITUTION THE RECESSION MAKES IT IMPOSSIBLE TO MEET THE GOAL OF WRAPPING UP THE ACTIVE PRIVATIZATION PHASE BY THE END OF 1993 MS BREUEL SAID IN AN INTERVIEW WITH THE WALL STREET JOURNAL EUROPE AND HANDELSBLATT THE GERMAN BUSINESS DAILY I ALWAYS SAID WE COULD ONLY SUCCEED IF ECONOMIC CONDITIONS DIDN'T CHANGE THEY HAVE CHANGED NOW WE JUST HAVE TO WAIT IT OUT DURING THE PAST THREE YEARS THE TREUHANDANSTALT HAS SECURED 179 BILLION MARKS 105 BILLION OF INVESTMENT COMMITMENTS AND JOB GUARANTEES FOR 14 MILLION EASTERN GERMAN WORKERS BUT HAVING FULFILLED MOST OF HER MANDATE OF SELLING OFF EASTERN GERMAN INDUSTRY MS BREUEL SAYS WINDING UP THE TREUHAND MAY BE THE TRICKIEST PART OF HER JOB THE CHALLENGE IS TO DEAL WITH THE STUBBORN REMNANTS OF THE STATEOWNED INDUSTRIES AND CONSTRUCT A WORKABLE STRUCTURE TO ADMINISTER AND ENFORCE THE TREUHAND CONTRACTS A PROCESS THAT COULD LAST AS LONG AS ANOTHER 10 YEARS THE POLITICS OF HER WORK ALSO HAVE BECOME TRICKIER SOME MEMBERS OF PARLIAMENT WANT AN INVESTIGATIVE COMMITTEE TO LOOK INTO ALLEGATIONS THAT MANY INVESTORS HAVE PLUNDERED FORMER EAST GERMAN COMPANIES FROM THE VERY FIRST DAY I'VE ALWAYS SAID THAT WITH THE MASSIVE NUMBER OF DECISIONS WE NEEDED TO MAKE THAT WE WOULD MAKE MISTAKES SAYS MS BREUEL I SAY THE SAME THING TODAY WE WILL MAKE MISTAKES IN THE FUTURE AND FOR AS LONG AS WE ARE HERE BUT SHE SAYS THAT OF 40000 CONTRACTS ONLY 30 CASES CAUSED PUBLIC SCRUTINY AND ONLY 400 REQUIRED REVIEW BECAUSE THE INVESTOR DIDN'T FULFILL THE CONTRACT TERMS WE'VE PROBABLY MADE MORE SALES THAN ALL BANKS AND FINANCIAL ORGANIZATIONS IN THE WORLD AND I THINK THEY ALSO MAKE MISTAKES THE REMAINING 1700 COMPANIES STILL ON TREUHAND BOOKS ARE A HARDER SELL IN THE MIDST OF A RECESSION ONLY 700 OF THESE ARE STILL FOR SALE WHILE THE REMAINDER ARE EITHER IN LIQUIDATION OR IN THE FINAL STAGES OF NEGOTIATIONS WITH SUITORS THE TREUHAND ALREADY EMPLOYS 400 PEOPLE JUST TO ADMINISTER CONTRACTS AND WILL HAVE TO ADD 200 MS BREUEL SAYS AT THE BEGINNING I NEVER BELIEVED WE WOULD NEED SUCH A BIG CONTRACTMANAGEMENT DEPARTMENT THE PRIVATIZATION CHIEF SAID WHILE SOME OF THE CONTRACT SUPERVISION COULD BE FINISHED SOON INDIVIDUAL CASES PARTICULARLY THOSE INVOLVING ENVIRONMENTAL LIABILITIES COULD LINGER AS LONG AS A DECADE SHE SAID THE POLITICAL SCIENTIST AND FORMER FINANCE MINISTER OF LOWER SAXONY BRUSHES ASIDE SPECULATION ABOUT HER OWN FUTURE GIVEN THE DEARTH OF POLITICAL TALENT IN HER PARTY THE CHRISTIAN DEMOCRATIC UNION SPECULATION SWIRLS ABOUT A ROLE IN POLITICS FOR THE HARDHEADED MANAGER BUT MS BREUEL SAYS WEARILY I WILL GO HOME I NEED TO HAVE TIME TO REFLECT AND HAVE SOME QUIET 9307090140 930709 BUSINESS BRIEF QUINCY SAVINGS BANK COMPANY TO TAKE A CHARGE POST SECONDQUARTER LOSS QUINCY SAVINGS BANK SAID IT EXPECTS TO REPORT A SECONDQUARTER LOSS AFTER RECORDING AN AFTERTAX CHARGE OF AS MUCH AS 14 MILLION RELATED TO NONPERFORMING ASSETS IN THE 1992 SECOND QUARTER QUINCY HAD NET INCOME OF 92000 OR TWO CENTS A SHARE AS OF DEC 31 1992 THE COMPANY HAD TOTAL ASSETS OF 325 MILLION THE QUINCY MASS BANK COMPANY SAID IT PLANS TO DISPOSE OF A SIGNIFICANT PORTION OF ITS NONPERFORMING ASSETS WHICH ARE TIED TO REAL ESTATE THE BANK WILL ALSO WRITE DOWN ABOUT 32 MILLION IN DEPOSITS AT ITS LINCOLN TRUST CO UNIT WHICH WAS ACQUIRED IN 1988 AND HAS SINCE DROPPED IN VALUE THE BANK SAID THE WRITEDOWNS WILL HAVE NO MATERIAL EFFECT ON ITS TANGIBLE CAPITAL RATIO AND WILL SUBSTANTIALLY REDUCE ITS EXPOSURE TO THE COMMERCIAL REAL ESTATE MARKET QUINCY SAVINGS BANK'S TOTAL ASSETS WERE 8789 MILLION ON DEC 31 1992 IN AN ARTICLE FRIDAY ASSETS WERE MISTAKENLY REPORTED AS 325 MILLION A 14 MILLION AFTERTAX CHARGE THAT QUINCY SAVINGS EXPECTS TO REPORT FOR THE SECOND QUARTER INCLUDES A 32 MILLION PRETAX WRITEDOWN OF GOODWILL RELATED TO DEPOSITS ACQUIRED IN A 1988 ACQUISITION THE ARTICLE INCORRECTLY STATED THAT THE COMPANY WAS WRITING DOWN 32 MILLION IN DEPOSITS 9307090139 930709 BUSINESS BRIEF DURAMED PHARMACEUTICALS INC PACT REACHED WITH LENDER PROVIDENT ABOUT PAYMENTS DURAMED PHARMACEUTICALS INC CINCINNATI SAID IT SIGNED A DEFINITIVE AGREEMENT WITH PROVIDENT BANCORP INC UNDER WHICH THE BANK WILL NOT REQUIRE PRINCIPAL PAYMENTS PRIOR TO JAN 1 1995 OR INTEREST PAYMENTS PRIOR TO AUGUST 1994 ON DURAMED'S OBLIGATIONS TO THE BANK AS OF JUNE 30 THE GENERICDRUG MAKER'S PRINCIPAL OUTSTANDING WAS 168 MILLION AND INTEREST OUTSTANDING WAS 3 MILLION IN ADDITION PROVIDENT HAS REDUCED THE INTEREST RATE ON DURAMED'S DEBT TO THE PRIME RATE FROM PRIME PLUS 3 UNTIL JAN 1 1995 IN RETURN DURAMED WILL ISSUE TO THE BANK 346718 SHARES OF COMMON AND 74659 SHARES OF A NEW CLASS OF PREFERRED STOCK THAT ARE CONVERTIBLE INTO 746590 SHARES OF COMMON DURAMED SAID THE AGREEMENT WILL NOT HAVE A MATERIAL EFFECT ON OPERATING RESULTS THOUGH PERSHARE RESULTS WILL BE AFFECTED AS A RESULT OF MORE SHARES OUTSTANDING 9307090138 930709 LETTERS TO THE EDITOR DOCTORS AND BABYFORMULA MARKETING THE PAGEONE ARTICLE ON ABBOTT LABORATORIES MAY 25 INAPPROPRIATELY ACCUSED THE AMERICAN ACADEMY OF PEDIATRICS OF HELPING TO SELL COMMERCIAL BABY FORMULAS OF SELECTED COMPANIES THIS CHARGE IS CLASSIC GUILT BY ASSOCIATION PHARMACEUTICAL COMPANIES HAVE SUPPORTED BOTH EDUCATIONAL AND SOCIAL FUNCTIONS AT NATIONAL MEETINGS AND PROVIDE GRANTS THAT SUPPORT MEDICAL RESEARCH AND EDUCATION WHILE THE COMPANIES MAY CONSIDER THIS A FORM OF MARKETING IN THAT IT ENGENDERS GOODWILL IT IS AN INSULT TO THE INTEGRITY OF INDIVIDUAL PHYSICIANS MAKING MEDICAL DECISIONS TO SUGGEST THAT A GRANT TO THE AMERICAN ACADEMY OF PEDIATRICS INFLUENCES WHAT DR BROWN IN PEORIA RECOMMENDS TO MR AND MRS JONES TO FEED THEIR BABY WHILE MARKETING EFFORTS DIRECTLY TO THE PHYSICIAN ARE NOT WITHOUT INFLUENCE THE DR BROWNS OF THE WORLD ARE GOING TO BE INFLUENCED PRIMARILY BY THE FEEDING PRACTICES THEY ARE TAUGHT IN THEIR MEDICAL TRAINING AND BY THE ONGOING MEDICAL LITERATURE THE MOTIVATION OF THE PEDIATRICS ACADEMY IN OPPOSING DIRECT ADVERTISING TO THE PUBLIC WAS BASED ON LEGITIMATE CONCERNS THAT IT WOULD EXTEND BEYOND ENCOURAGING ONE BRAND OVER ANOTHER AND AIM INSTEAD TO EXPAND THE MARKET FOR BABY FORMULA BY ENCOURAGING ARTIFICIAL FEEDING OVER BREAST FEEDING A POSITION STRONGLY OPPOSED BY THE ACADEMY ON SOUND SCIENTIFIC BASIS FURTHERMORE YOUR CONTENTION THAT THIS POLICY RESTRICTED COMPETITION AND THEREBY PLAYED A MAJOR ROLE IN INCREASING PRICES DOES NOT APPEAR TO STAND THE TEST OF REASON THERE HAS ALWAYS BEEN ACTIVE COMPETITIVE MARKETING AMONG THE VARIOUS COMPANIES MAKING BABY FORMULA IN PROFESSIONAL PUBLICATIONS COMMERCIAL DISPLAYS AT MEDICAL MEETINGS AND IN PERSONAL CONTACT WITH PHYSICIANS BY SALES REPRESENTATIVES THERE IS IN FACT NO BARRIER TO ANY COMPANY WITH THE FINANCIAL RESOURCES THAT WANTS TO USE THE SAME SALES TECHNIQUES IF THE ARGUMENT IS TO BE MADE THAT THE FORMULATIONS SHOULD BE TREATED AS GENERIC THEN THAT MARKETING TACTIC WOULD CERTAINLY HAVE HAD INFLUENCE WITH MANY PHYSICIANS AIMING TO PROVIDE THEIR PATIENTS THE MOST COSTEFFECTIVE SATISFACTORY FORMULA FOR THEIR PATIENTS IF ANY COMPANY HAD CHOSEN TO USE THAT STRATEGY IT IS DIFFICULT FOR ME TO ACCEPT YOUR CONTENTION THAT ACCESS TO PHYSICIANS THROUGH ETHICAL MARKETING OF A NEW FORMULA IS MORE DIFFICULT THAN A NEW PRODUCT WINNING SPACE ON SUPERMARKET SHELVES AS A MEMBER OF THE AMERICAN ACADEMY OF PEDIATRICS I VIGOROUSLY DEFEND THE ACADEMY'S POSITION IN ATTEMPTING TO DISCOURAGE DIRECT MARKETING OF INFANT FORMULAS IN ORDER TO PREVENT A MARKETING CAMPAIGN THAT WOULD NOT STOP AT BRAND COMPETITION BUT WOULD IN FACT MOVE TO EXPAND THE MARKET BY ENCOURAGING FORMULA FEEDING OVER BREAST FEEDING THE MARCH/APRIL 1993 AMERICAN ACADEMY OF PEDIATRICS WASHINGTON REPORT FROM ITS DEPARTMENT OF GOVERNMENT LIAISON SUPPORTS PRESIDENT CLINTON'S UNIVERSAL IMMUNIZATION BILL SUPPORTS A PROPOSED BAN BY THE US CONSUMER PRODUCTS SAFETY COMMISSION ON BABY WALKERS BECAUSE OF REPEATED INJURIES SUPPORTS THE BRADY BILL'S GUNCONTROL MEASURES AND SUPPORTS HIGHER TAXES ON TOBACCO THE FACT THAT THE ACADEMY'S OPPOSITION TO DIRECT PUBLIC MARKETING OF INFANT FORMULAS POTENTIALLY COINCIDED WITH ABBOTT'S MARKETING STRATEGY SHOULD NOT BE USED TO UNFAIRLY IMPUGN THE MOTIVES OR ACTIVITIES OF THE ACADEMY 9307090136 930709 REVIEW & OUTLOOK EDITORIAL ASIDES IN REVERSE WE WERE TOO OPTIMISTIC IN MARCH WHEN ENVISIONING UP TO FIVE ROADPRICING DEMONSTRATION PROJECTS FROM THE US TRANSPORTATION DEPARTMENT TURNS OUT ONLY ONE WAS APPROVED ON THE GOLDEN GATE BRIDGE WHERE TOLLS ALREADY ARE IN EFFECT AMONG THOSE REJECTED WAS A PHOENIXAREA PLAN USING HIGHOCCUPANCYVEHICLE LANES AS AN ENTREE TO MARKETPLACE ROADWAYS BUT THE STORY GETS WORSE THE ARIZONA HIGHWAY AGENCY HAS FIRED ITS PRIVATIZATION CHIEF AND NOW APPEARS TO BE BACKING OFF SERIOUS CHANGE IN THE FACE OF OPPOSITION FROM LOCAL OFFICIALS WHO LIKE TRADITIONAL ASPHALT ALLOCATIONS 9307090135 930709 BUSINESS BRIEF DATA I/O CORP ELECTRONICS CONCERN TO POST LOSS FOR THE SECOND QUARTER DATA I/O CORP SAID IT WILL REPORT AN UNEXPECTED SECONDQUARTER NET LOSS OF 600000 OR EIGHT CENTS A SHARE AND FLAT SALES ANALYSTS HAD EXPECTED THE REDMOND WASH ELECTRONICS MANUFACTURER TO EARN TWO CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH IN THE 1992 SECOND QUARTER DATA I/O POSTED A NET LOSS OF 13 MILLION OR 18 CENTS A SHARE AFTER A ONETIME CHARGE OF 17 MILLION SALES WERE 168 MILLION DATA I/O SAID THE QUARTERLY LOSS IS THE RESULT OF INVENTORY REDUCTION MEASURES AND HIGHER OPERATING EXPENSES SUCH AS FOR RESEARCH AND DEVELOPMENT SALES ARE SUFFERING BECAUSE OF ECONOMIC WEAKNESS IN EUROPE AND JAPAN THE COMPANY SAID 9307090134 930709 LETTERS TO THE EDITOR HYPERBOLE ONLY HURTS FIGHT AGAINST RACISM MICHAEL DUFFY'S LONG LETTER TO THE EDITOR JUNE 1 DID A POOR JOB UPHOLDING THE CASE FOR TESTING OF COVERT DISCRIMINATION IN HIS EXAMPLE MR DUFFY CITED THE USE OF TWO MEN ONE WHITE AND ONE BLACK WHO WERE EQUIVALENT IN MOST RESPECTS THEY BOTH APPLIED FOR A JOB AT BROOKS BROTHERS IN BOSTON THE WHITE MAN WHO APPLIED FIRST WAS INFORMED A JOB WAS OPEN HE FILLED OUT AN APPLICATION AND WAS TOLD TO RETURN WITH HIS RESUME AN HOUR LATER THE BLACK MAN WAS TOLD THAT THERE WAS NO JOB AVAILABLE WAS THIS RACIAL DISCRIMINATION I THINK NOT FOR THREE REASONS ONE THE WHITE MAN APPLIED FIRST HAD THE BLACK MAN APPLIED FIRST THEN THERE WOULD HAVE BEEN GROUNDS TO ACCUSE BROOKS BROTHERS OF DISCRIMINATION TWO MR DUFFY HIMSELF SAYS THERE WAS ONLY ONE JOB OPENING IF SO THEN WHY SHOULD THE MANAGER CONTINUE TO SAY THE JOB WAS AVAILABLE WHEN HE HAD ALMOST COMPLETED THE DECISION TO HIRE THE PERSON WHO APPLIED FIRST THREE I PRESUME THAT THE POSITION WAS THAT OF SALESMAN OR STOCK PERSON EITHER JOB IS MUNDANE AND LOWPAYING WHY SHOULD THE MANAGER AT BROOKS BROTHERS WASTE HIS TIME AND COMPANY MONEY INTERVIEWING MANY PEOPLE FOR A LOWLEVEL JOB MR DUFFY THEN CONCLUDES THAT SITUATIONS LIKE THE BROOKS BROTHERS INCIDENT OCCUR MILLIONS OF TIMES EVERY DAY FOR BLACK JOB SEEKERS HYPERBOLE OF THIS TYPE AND HIS USE OF A FLAWED EXAMPLE ARE DETRIMENTAL TO BOTH ABOVEBOARD AND STATISTICALLY RELIABLE COVERT EFFORTS TO END RACIAL DISCRIMINATION IN THIS COUNTRY 9307090133 930709 SEC ACCUSES KENBEE OF VIOLATIONS AGAINST EXCLIENT DELVAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED THE FORMER MANAGEMENT COMPANY FOR DELVAL FINANCIAL CORP OF FAILING TO DISCLOSE LIQUIDITY PROBLEMS AT THE REAL ESTATE INVESTMENT TRUST AT THE SAME TIME THE MANAGEMENT COMPANY KENBEE MANAGEMENT INC AND ITS TWO OWNERS ROGER D STERN AND MARTIN WRIGHT SETTLED THE CHARGES AGREEING TO AN SEC ORDER BARRING FUTURE INFRACTIONS UNDER THE SETTLEMENT MESSRS STERN AND WRIGHT ALSO ARE BARRED FROM SERVING AS OFFICERS OR DIRECTORS OF A PUBLICLY HELD COMPANY NEITHER ADMITTED NOR DENIED ANY WRONGDOING A THIRD OFFICER OF BOTH KENBEE AND DELVAL JAMES GOLDSTEIN ALSO AGREED TO THE SETTLEMENT NONE OF THE THREE OFFICERS COULD BE REACHED FOR COMMENT LATE YESTERDAY THE SEC COMPLAINT FILED HERE SAID THE THREE MEN WHO SERVED AS OFFICERS FOR BOTH OF THE BOGOTA NJ COMPANIES WHEN DELVAL COLLAPSED IN LATE1990 DIDN'T FULLY REPORT IN ITS PUBLIC FILINGS TO SECURITIES REGULATORS THAT DELVAL RELIED ON IMPROPER FINANCING PRACTICES TO BOLSTER ITS FINANCES ACCORDING TO THE SEC DELVAL BEGAN HAVING LIQUIDITY PROBLEMS IN THE LATE1980S IN PART BECAUSE KENBEE'S SALES OF LIMITED PARTNERSHIPS WERE SLOWING BY 1989 THE SEC ALLEGED DELVAL AND KENBEE WERE BORROWING FUNDS TO MEET THEIR EXPENSES AND DIVIDEND PAYMENTS ADDITIONALLY THE SEC ACCUSED KENBEE OF MISLEADING INVESTORS ON HOW THE PROCEEDS FROM A 19 MILLION DELVAL PUBLIC OFFERING IN MAY 1990 WOULD BE USED 9307090131 930709 LETTERS TO THE EDITOR A NUCLEAR REACTOR THAT'S MELTDOWNPROOF YOUR JUNE 7 ARTICLE DESCRIBED GENERAL ATOMICS' COMMITMENT TO DEVELOPMENT OF A SECONDGENERATION NUCLEAR REACTOR TECHNOLOGY IT IS NOTEWORTHY HOWEVER THAT THE IMPORTANT TECHNICAL CHARACTERISTICS OF THE GAS TURBINEMODULAR HELIUM REACTOR WERE NOT EXPLAINED UNLIKE CONVENTIONAL WATERCOOLED REACTORS THE GTHMR CAN WITHSTAND A COMPLETE LOSS OF COOLANT WITHOUT DAMAGE TO ITS FUEL PARTICLES AND THEREFORE OFFERS MELTDOWNPROOF SAFETY AND BECAUSE OF THE CLOSED CYCLE GAS TURBINE GENERATOR ITS ECONOMIC EFFICIENCY PROMISES TO BE 50 GREATER THAN THAT OF CONVENTIONAL REACTORS THE REACTOR CAN ALSO ACHIEVE A 95 BURNUP IN A ONCETHROUGH CYCLE FOR CONSUMING WEAPONSGRADE PLUTONIUM FUEL TO BECOME AVAILABLE FROM DISMANTLEMENT OF NUCLEAR WEAPONS THE SIGNIFICANCE OF THE PROPOSED JOINT USRUSSIAN PROJECT IS THAT IT IS A SHAREDRISK JOINT VENTURE THAT REDUCES THE COST FOR DEMONSTRATING THE TECHNOLOGY WHILE CONTRIBUTING TO THE CONVERSION OF THE RUSSIAN NUCLEAR INDUSTRIAL ESTABLISHMENT FROM WEAPONS PRODUCTION TO MORE PRODUCTIVE ENDEAVORS IT IS ALSO NOTEWORTHY THAT THE GAS TURBINE MHR TECHNOLOGY COMBINATION WAS NEVER EVALUATED BY THE NATIONAL ACADEMY OF SCIENCES 9307090130 930709 BUSINESS BRIEF TRAVELERS CORP COMPANY DECIDES TO DROP ITS INDEX FUND BUSINESS TRAVELERS CORP SAID ITS ASSET MANAGEMENT & PENSION SERVICES BUSINESS WILL PULL OUT OF THE INDEX FUND BUSINESS AND LAY OFF 48 PEOPLE THE INSURANCE AND FINANCIAL SERVICES CONCERN IN HARTFORD CONN SAID IT HAD BEEN DISSATISFIED WITH THE SIZE OF ITS INDEX FUND BUSINESS WHICH HAD ABOUT 26 BILLION IN ASSETS UNDER MANAGEMENT WE DIDN'T FEEL WE COULD REACH A LARGE ENOUGH SCALE IN THE TIME FRAME THAT WE WANTED A SPOKESMAN SAID TRAVELERS ENTERED THE INDEX FUND BUSINESS ABOUT THREE YEARS AGO AND THE OPERATION SERVED ABOUT 450 TO 500 CORPORATE CLIENTS TRAVELERS SAID IT EXPECTS SOME FURTHER LAYOFFS RELATED TO THE DISCONTINUED BUSINESS AT ASSET MANAGEMENT & PENSION SERVICES WHICH HAS ABOUT 600 EMPLOYEES TRAVELERS SAID FUTURE ASSET MANAGEMENT & PENSION SERVICES OPERATIONS WOULD CONCENTRATE ON THE GUARANTEED INVESTMENT AND ANNUITY BUSINESSES 9307090129 930709 BUSINESS BRIEF BACHMAN INFORMATION SYSTEMS INC COMPANY CUTS WORK FORCE PLANS RESTRUCTURING CHARGE BACHMAN INFORMATION SYSTEMS INC CUT ITS WORK FORCE FOR THE SECOND TIME IN A YEAR AND WILL TAKE A RESTRUCTURING CHARGE IN ITS FOURTH QUARTER ENDED JUNE 30 THE COMPANY SAID IT CUT ITS WORK FORCE BY 33 EMPLOYEES OR 12 AFTER ELIMINATING 15 OF ITS JOBS LAST NOVEMBER THE SOFTWARE MAKER WHICH IS BASED IN BURLINGTON MASS DECLINED TO ESTIMATE THE AMOUNT OF THE CHARGE OR TO MAKE AN EARNINGS ESTIMATE FOR THE QUARTER THE CONCERN SAID REVENUE FOR THE FOURTH QUARTER IS EXPECTED TO SLIGHTLY EXCEED 83 MILLION BUT WILL BE WELL BELOW YEARAGO FOURTHQUARTER REVENUE OF 151 MILLION IN THAT QUARTER THE COMPANY HAD NET INCOME OF 13 MILLION OR 15 CENTS A SHARE WHICH INCLUDED A TAX CREDIT OF 486000 ARNOLD A KRAFT PRESIDENT SAID THE COMPANY'S MAINFRAME CUSTOMERS ARE BECOMING MORE CAUTIOUS AND ARE SWITCHING TO NETWORKBASED COMPUTERS HE ALSO CITED INCREASED COMPETITION AND DECLINING SOFTWARE PRICES 9307090128 930709 ANADARKO CONVERTS DEBENTURES HOUSTON ANADARKO PETROLEUM CORP SAID IT COMPLETED THE CONVERSION INTO COMMON STOCK OF 998 OF THE COMPANY'S 100 MILLION IN 625 SUBORDINATED DEBENTURES DUE IN 2014 THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID THE DEBENTURES HAVE BEEN CONVERTED INTO ABOUT 29 MILLION COMMON SHARES BRINGING THE COMPANY'S TOTAL OUTSTANDING TO 585 MILLION 9307090127 930709 BUSINESS BRIEF AMERICAN POWER CONVERSION CORP RHODE ISLAND GRANTS CONCERN TAX BREAKS TO EXPAND PLANT AMERICAN POWER CONVERSION CORP SAID IT AGREED TO BUILD A NEW FACILITY IN RHODE ISLAND AFTER NEGOTIATING TAX BREAKS VALUED AT A MINIMUM OF 156 MILLION OVER SIX YEARS JOSEPH PAOLINO JR DIRECTOR OF THE STATE DEPARTMENT OF ECONOMIC DEVELOPMENT SAID THE STATE SIGNED A TENTATIVE AGREEMENT AFTER LEARNING THE COMPANY WAS CONSIDERING LEAVING RHODE ISLAND FOR A STATE WITH LOWER TAX RATES HE ESTIMATED THE STATE WOULD LOSE 20 MILLION A YEAR IN NEW SALARIES AND TAXES IF THE PEACE DALE RI COMPANY EXPANDED ELSEWHERE AS PART OF THE PLAN OFFICIALS SAID THE STATE WOULD EXEMPT THE COMPANY FROM STATE SALES TAXES ON BUILDING MATERIALS PROVIDE 50000 A YEAR FOR EMPLOYEE JOB TRAINING INSTALL A TRAFFIC LIGHT AT THE NEW FACILITY AND HELP ARRANGE A 1 MILLION FEDERAL GRANT FOR A NEW SEWER LINE IN RETURN AMERICAN POWER A COMPUTER POWER SUPPLY PRODUCTS CONCERN WOULD EXPAND AN EXISTING RHODE ISLAND FACILITY AND OPERATE IT FOR SIX YEARS AMERICAN POWER SAID IT ALSO AGREED TO EMPLOY UP TO 500 NEW WORKERS WITHIN FIVE YEARS 9307090126 930709 BUSINESS BRIEF ALLIEDSIGNAL INC STERILANT GASES BUSINESS IS ACQUIRED FROM PRAXAIR ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ SAID IT BOUGHT THE STERILANT GASES BUSINESS OF PRAXAIR INC DANBURY CONN TERMS WEREN'T DISCLOSED THE ACQUISITION WILL EXPAND ALLIEDSIGNAL'S EFFORTS TO PROVIDE ENVIRONMENTALLY SAFER SUBSTITUTES FOR CHLOROFLUOROCARBON12 CFC THE AEROSPACE AND AUTOMOTIVE MANUFACTURER SAID PRODUCERS OF CFCS MUST PHASE THEM OUT BY 1995 UNDER AN INTERNATIONAL AGREEMENT THE UNIT OF PRAXAIR WHICH WAS FORMERLY UNION CARBIDE INDUSTRIAL GASES SELLS ETHYLENE OXIDE GAS MIXTURES TO STERILIZE MEDICAL EQUIPMENT ALLIEDSIGNAL SAID IT'S BUILDING A 60 MILLION PLANT IN GEISMAR LA THAT WILL BE INVOLVED WITH PRODUCING THE MIXTURES 9307090124 930709 BUSINESS BRIEF HELEN OF TROY CORP FISCAL FIRSTQUARTER PROFIT FELL 35 ON 8 SALES DECLINE HELEN OF TROY CORP SAID ITS FISCAL FIRSTQUARTER NET INCOME FELL 35 BECAUSE OF SLUGGISH RETAIL SALES TRIGGERING A SELLOFF OF THE PERSONALCARE PRODUCTS MARKETER'S STOCK THE EL PASO TEXAS COMPANY SAID NET FOR THE PERIOD ENDED MAY 31 DROPPED TO 11 MILLION OR 15 CENTS A SHARE FROM 17 MILLION OR 24 CENTS A SHARE A YEAR EARLIER THE MOST RECENT RESULTS INCLUDED A 365000 GAIN FROM A REAL ESTATE SALE AND A ONETIME WRITEOFF OF 397000 FROM AN ACCOUNTING CHANGE THE YEAREARLIER RESULTS ARE ADJUSTED FOR A 50 STOCK DIVIDEND PAID IN OCTOBER SALES DECLINED 8 IN THE QUARTER TO 268 MILLION FROM 29 MILLION A YEAR EARLIER AS A RESULT HELEN OF TROY SHARES PLUNGED 325 OR 18 TO CLOSE AT 1525 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9307090123 930709 REVIEW & OUTLOOK EDITORIAL CALIFORNIA SPLIT CALIFORNIA HAS BECOME TOO LARGE AND TOO COMPLEX TO BE MANAGED EFFICIENTLY AS A SINGLE UNIT CALIFORNIANS ARE SERIOUSLY TALKING ABOUT DIVIDING INTO THREE STATES IN JUNE THE STATE ASSEMBLY VOTED 46 TO 26 TO ALLOW VOTERS TO EXPRESS THEIR OPINION ON CREATING SEPARATE STATES OF NORTH CENTRAL AND SOUTHERN CALIFORNIA ONCE A PIPE DREAM THE IDEA OF SPLITTING THE STATE IS BEING TALKED ABOUT AS A WAY TO MAKE STATE GOVERNMENT MORE WORKABLE AND ACCOUNTABLE TO VOTERS OF COURSE CALIFORNIA IS A LONG WAY FROM ACTUAL DIVORCE COURT MANY STEPS WOULD HAVE TO BE TAKEN TO DIVIDE THE STATE THE STATE SENATE MUST APPROVE THE REFERENDUM GOVERNOR WILSON MUST SIGN IT THE PEOPLE MUST VOTE IN FAVOR THE LEGISLATURE MUST CONCUR AND FINALLY THE US CONGRESS WOULD HAVE TO BE CONVINCED STILL THERE IS NO DENYING THE IDEA IS POPULAR LAST YEAR 27 OUT OF 31 NORTHERN COUNTIES VOTED IN FAVOR OF DIVIDING THE STATE SUPPORT IN LAST MONTH'S ASSEMBLY VOTE CROSSED ALL PARTY AND REGIONAL LINES ASSEMBLY SPEAKER WILLIE BROWN AND LT GOVERNOR LEO MCCARTHY BOTH LIKE THE IDEA CYNICS CLAIM THEY BACK IT BECAUSE THE THREE NEW STATES WOULD HAVE NEW CONSTITUTIONS THAT MIGHT NOT INCLUDE THE VOTERIMPOSED TERM LIMITS THAT WILL REMOVE ALL CURRENT CALIFORNIA OFFICEHOLDERS BY THE YEAR 2000 BACKERS OF SPLITTING THE STATE SAY THE IDEA GOES BACK 134 YEARS WERE IT NOT FOR THE CIVIL WAR THAT GAVE SECESSION A BAD NAME CONGRESS WOULD LIKELY HAVE PASSED AN 1859 RESOLUTION APPROVED BY THE STATE'S LEGISLATURE GOVERNOR AND 75 OF VOTERS DIVIDING CALIFORNIA INTO TWO STATES THE REASONS FOR THE IDEA'S REVIVAL ARE CLEAR CALIFORNIA'S 31 MILLION PEOPLE MAKE THE STATE MORE POPULOUS THAN 22 OTHER STATES COMBINED IT IS 45 BIGGER THAN NEW YORK THE NEXT MOST POPULOUS STATE ITS REGIONS ARE WORLDS APART IN THEIR PRIORITIES LIFESTYLES AND INTERESTS ASSEMBLYMAN STAN STATHAM THE LEADING PROPONENT OF DIVIDING CALIFORNIA SAYS A MEGASTATE LEADS TO FRUSTRATION OVERREGULATION AND GRIDLOCK POLITICAL BOUNDARIES SHOULD BE REDRAWN TO BENEFIT OUR CITIZENS NOT ENSLAVE THEM HE SAYS WE AGREE SORT OF ULTIMATELY THE KEY ISSUE IS NOT WHETHER A POLITY IS THE SIZE OF CALIFORNIA OR HONG KONG WHAT DOES MATTER IS THE SIZE OF THE PUBLIC SECTOR REGULATIONS BUREAUCRACIES REVENUE DEMANDS RELATIVE TO EVERYTHING ELSE THAT IS TRYING TO BE PRODUCTIVE NOT JUST IN THE US BUT GLOBALLY IT'S INCREASINGLY CLEAR THAT WHETHER A POLITICAL ENTITY HAS A VIBRANT ECONOMY AND FUNCTIONING SERVICES DEPENDS ON ITS SUCCESS AT SCALING BACK THE STATE'S INTRUSIONS AND DEMANDS IT WAS RONALD REAGAN'S VIEW WHEN HE WAS CALIFORNIA'S GOVERNOR THAT IF GOVERNMENT GOT OUT OF THE WAY THE PEOPLE WOULD DO GOOD THINGS BUT CALIFORNIA HASN'T FOLLOWED HIS ADVICE RECENTLY IN THE 1980S SACRAMENTO SCARFED UP MORE OF THE ECONOMIC PIE STATE SPENDING GREW A PHENOMENAL 79 IN REAL TERMS STARTING IN 1990 TAXES WERE RAISED DRAMATICALLY DEEPENING THE RECESSION AS CLINT BOLICK DOCUMENTS IN HIS NEW BOOK GRASSROOTS TYRANNY EVEN LOCAL GOVERNMENT HAS BECOME REMOTE INFLEXIBLE AND OVERBEARING BETWEEN 85 AND 90 OF THE AVERAGE CALIFORNIA COUNTY'S BUDGET IS DICTATED BY MANDATES THE CALIFORNIA DREAM HAS BEEN REPLACED BY INSECURITY AND ANGST PEOPLE ARE GRASPING FOR SOLUTIONS THAT WILL RESTORE CALIFORNIA TO ITS FORMER VIBRANCY AND PRESTIGE AND NOW THAT INCLUDES DIVIDING UP THE STATE THERE IS A GOOD QUESTION HERE OF JUST HOW THE POLITICAL SYSTEM IS SUPPOSED TO MAKE THE TRIP BACK DOWN AFTER LETTING THE STATE BECOME A COLOSSUS OF RULES SPENDING COMMITMENTS PROTECTED CONSTITUENCIES AND CAREER POLITICIANS POSSIBLY CALIFORNIA OR SOME OF IT MIGHT FUNCTION BETTER IF IT WERE MADE UP OF MORE MANAGEABLE UNITS SO TOO MIGHT NEW YORK CITY WHICH FACES SERIOUS SECESSION MOVEMENTS FROM STATEN ISLAND AND QUEENS BUT SIMPLY CARVING OUT NEW POLITICAL BOUNDARIES AVOIDS THE TOUGHER DECISIONS ABOUT WHAT KIND OF GOVERNMENT WE WANT NOW OR NEED WE ARE HEADING TOWARD A 21ST CENTURY MISMATCH A PRIVATE SECTOR THAT WON'T BE ABLE TO FUNCTION EFFECTIVELY IF IT'S OPERATING WITH EARLY 20TH CENTURY MODELT GOVERNMENT 9307090122 930709 BUSINESS BRIEF CYPRUS MINERALS CO RUSSIAN JOINT VENTURE WINS BID TO DEVELOP KUBAKA MINE CYPRUS MINERALS CO DENVER SAID ITS RUSSIAN JOINT VENTURE HAS WON A BID TO DEVELOP THE KUBAKA GOLD FIELD IN THE MAGADAN REGION OF EASTERN RUSSIA CYPRUS'S STAKE IN THE JOINT VENTURE HAS YET TO BE DETERMINED AND IS CONTINGENT ON WHAT FINANCING IS OBTAINED FOR THE 100 MILLION PROJECT THE JOINT VENTURE COMPANY OMOLON GOLD MINING CO WILL INCLUDE CYPRUS'S CYPRUS MAGADAN GOLD CO UNIT AND FIVE RUSSIAN PARTNERS THE RUSSIAN PARTNERS ARE TWO MINING COMPANIES A PRIVATE STOCK COMPANY A GROUP OF INDIVIDUALS AND AN ASSOCIATION OF NATIVE PEOPLES PRELIMINARY DATA COLLECTED BY THE JOINT VENTURE INDICATED THE POTENTIAL FOR A COMBINATION OPEN PIT AND UNDERGROUND MINE THAT WOULD PRODUCE AS MUCH AS 340000 OUNCES OF GOLD A YEAR FOR EIGHT YEARS THE BID WAS GRANTED BY THE SOVIET PEOPLE'S DEPUTIES OF MAGADAN OBLAST AND THE RUSSIAN COMMITTEE OF GEOLOGY 9307090121 930709 THE AMERICAS THE DOLLARIZATION OF THE CUBAN ECONOMY BY ARTURO VILLAR HAVANA LIKE THE OTHER COMMUTERS STANDING AROUND HER SHE HAD BEEN WAITING THREE HOURS FOR THE BUS TO TAKE HER TO WORK IT WAS 1030 IN THE MORNING AND THE DIGNIFIED WOMAN OF 40 WAS LATE ENOUGH TO GRATEFULLY ACCEPT A RIDE FROM A STRANGER SHE EXPLAINED TO THE DRIVER THAT FOR THE PAST MONTH SHE HAD BEEN SELLING IMPORTED GOODS FOR DOLLARS OUT OF A TRAILER THAT HAD BEEN MOVED FROM THE TRITON HOTEL TO THE COMODORO IT WAS NOW AT THE PARKING LOT OF THE LA CECILIA RESTAURANT COMPLEX BECAUSE OF THE LOCATIONS THE DRIVER ASSUMED HER CUSTOMERS WERE FOREIGNERS NO SHE SAID AND THEN EXPLAINED THEY ARE ALL CUBANS BUT NOBODY HAS TOLD US TO ASK FOR PASSPORTS WE HAVE SEEN TOO MUCH DESTRUCTION IN THIS COUNTRY SO I'M NOT GOING TO STOP THEM FROM SHOPPING AS LONG AS THEY CAN PAY EVEN IF IT'S ILLEGAL TO POSSESS DOLLARS THE POSSESSION OF DOLLARS HAS BEEN STRICTLY FORBIDDEN HERE SINCE 1961 UNTIL RECENTLY THE DISCOVERY OF HARD CURRENCY IN THE HANDS OF CUBANS LIVING ON THE ISLAND CARRIED HEAVY PENALTIES IN FINES AND IMPRISONMENT THE SALES LADY FROM THE TRAILER ALSO COULD HAVE BEEN PUNISHED SEVERELY FOR NOT ASKING HER DOLLAR CLIENTS TO IDENTIFY THEMSELVES BUT THESE PROHIBITIONS HAVE BEEN BREAKING DOWN RAPIDLY ON THE SIDEWALKS IN THE TOURIST GARDENSPOT OF VARADERO THERE ARE NOW COCACOLA VENDING MACHINES THAT ACCEPT DOLLAR BILLS ALSO IN VARADERO THERE IS A NEW WELLSTOCKED DEPARTMENT STORE CALLED EL ENCANTO BUILT IN JANUARY ESPECIALLY FOR CUBANS EARNING DOLLAR TIPS IN THE TOURIST INDUSTRY TO MY GREAT SURPRISE I ALSO HAD SEEN AND JOINED CUBANS EATING AND DRINKING FREELY IN DOLLAR RESTAURANTS AND HOTELS OF COURSE VARADERO IS A TOURIST MECCA A FANTASY LAND WHERE ILLUSIONS DEFY REALITY THE REALITY IN NONTOURIST CUBA IS OF THE STARKEST KIND A FEW HOURS OF ELECTRICITY A DAY FOR MOST THROUGHOUT THE ISLAND LITTLE OR NO PUBLIC TRANSPORTATION ANYWHERE NO CONSUMER GOODS AT ALL A FEW FOOD STAPLES IN PITIFULLY REDUCED PORTIONS NO WORK FOR UP TO 80 OF THE INDUSTRIAL LABOR FORCE LITTLE FUEL FOR THE FEW AUTOMOBILES STILL RUNNING AN ENTIRE NEW GENERATION RIDING BICYCLES FOR MILES TO GET AROUND THOUSANDS STANDING IN STREETS THUMBING RIDES IN ANYTHING THAT MOVES UNTIL RECENTLY CUBANS COULD BUY SOME NONRATIONED ESSENTIALS IN A PESO PARALLEL MARKET BUT EVEN THAT HAS DISAPPEARED AN ELDERLY COUPLE IN THE COUNTRYSIDE COMPLAINED TO VISITING US RELATIVES THAT THEY WERE UNABLE TO PURCHASE STAPLES BECAUSE THEIR NEIGHBORING FARMERS WERE ONLY SELLING FOR DOLLARS NEWS HAD NOT YET REACHED THE COUPLE THAT THE GOVERNMENT WAS TURNING A BLIND EYE TO DOLLARS AND THEY REFUSED TO HANDLE THE OUTLAWED CURRENCY THAT THEIR RELATIVES OFFERED SO THE US RELATIVES DROVE TO VARADERO ONE HUNDRED MILES AWAY AND BOUGHT SHOES JEANS AND OTHER APPAREL SO THE ELDERLY COUPLE COULD BARTER THEM FOR FOOD TWO PAIRS OF SHOES FOR A PIGLET FOR EXAMPLE BECAUSE GOVERNMENTOPERATED ENTERPRISES AND THE BUREAUCRACY STILL PAY ALL OR MOST OF THE SALARIES EVEN TO THE IDLED FACTORY WORKERS PESO LIQUIDITY AMONG CUBANS IS VERY HIGH HOWEVER EXECUTIVES AT THE BANCO POPULAR DE AHORROS CUBA'S ONLY CUSTOMERORIENTED BANK COMPLAIN THAT SAVINGS HAVE SLID TO THE LOWEST LEVELS EVER THE REASON PEOPLE EXCHANGE THEIR PESOS AT THE UNOFFICIAL 60 PESOS PER DOLLAR RATE TO SPEND IN THE DOLLAR BLACK MARKET ALMOST AS QUICKLY AS THEY RECEIVE THEIR PAYCHECKS THE CUBAN ECONOMISTS I MET WITH HOWEVER WERE NOT READY TO PREDICT A MOVE TO LEGALIZE THE DOLLAR THIS WOULD MEAN ACCEPTING THE DEMISE OF CENTRALLY CONTROLLED PLANNING AND WOULD EFFECTIVELY ALLOW THE CREATION OF ECONOMIC POWER BASES OUTSIDE THE COMMUNIST PARTY AND THE GOVERNMENT BUREAUCRACY AT MOST THEY SUGGESTED A FREE FLOATING OF THE PESO DEFLATIONARY MEASURES AND INCENTIVES WITH HARDCURRENCY PREMIUMS FOR WORKERS IN EXPORTORIENTED INDUSTRIES THEN THE BOMBSHELL HIT AT THE CLOSING SESSION OF THE NEWLY ELECTED ASSEMBLY OF POPULAR POWER CUBA'S PARLIAMENT ON JUNE 29 FIDEL CASTRO ADDRESSED THE ISSUE HEAD ON HE ASKED THE PEOPLE'S DEPUTIES IF IT WERE NOT TIME TO ACCEPT REALITY AND LEGALIZE THE DOLLAR AS CURRENCY IN CUBA HE COMPLAINED THAT ECONOMIC REALITIES HAD FORCED THE COUNTRY TO ACCEPT TOURISM TIPPING FOREIGN INVESTMENT AND HARD CURRENCY AND HE CONCLUDED THAT THERE IS NO WAY WE CAN CONTROL THOUSANDS OF PEOPLE WHO ARE IN FACT VIOLATING THE LAW IT IS DIFFICULT TO TELL WHAT THE NEXT STEPS WILL BE BUT IT SEEMS CERTAIN THAT SOONER RATHER THAN LATER DOLLARS WILL BE LEGAL IN CUBA THE PARLIAMENT DOES NOT MEET AGAIN UNTIL DECEMBER BUT THE COUNCIL OF STATE PRESIDED OVER BY CASTRO IS CHARGED WITH INTERIM DECISIONS THAT ARE ALWAYS RATIFIED AT THE NEXT SESSION OF THE ASSEMBLY WHEN LEGALIZATION IS ANNOUNCED SAYS CARMELO MESALAGO A US BASED CUBAN ECONOMIST PROBABLY THE FIRST THING IS THAT PEOPLE WITH DOLLARS ARE GOING TO STORM THE STORES AND BUY EVERYTHING THEY CAN FOR FEAR THE GOVERNMENT WILL GO BACK ON ITS DECISION BUT ASKS MR MESALAGO WILL THE CUBAN GOVERNMENT HAVE ENOUGH IMPORT BUYING POWER TO SATISFY THIS INITIAL OUTBURST OF PENTUP DEMAND IN FACT BEFORE I LEFT CUBA I HEARD RUMORS THAT SHIPMENTS OF GOODS FROM CANADA HAD BEEN ORDERED BY STATECONTROLLED RETAIL OUTLETS AND WERE ON THEIR WAY ORDERS HAD BEEN PLACED BASED ON THE KINDS OF GOODS MOST IN DEMAND AT THE EXPERIMENTAL OUTLETS IN VARADERO AND HAVANA IF THE DOLLAR IS TO BE LEGAL THE GOVERNMENT WANTS TO BE THE FIRST RETAILER TO MAKE DOLLAR PROFITS INITIALLY THIS COULD REDUCE THE BLACK MARKET ACTIVITY AND PERHAPS THE PILFERING OF IMPORTED GOODS BUT MOST IMPORTANTLY FOR THE GOVERNMENT AND FOR CUBANS IT COULD MEAN AN INCREASE IN AGRICULTURAL PRODUCTIVITY AMONG INDIVIDUAL FARMERS WITH SMALL PLOTS TO PLOW ON THEIR OWN A DOLLARIZED ECONOMY WOULD REVIVE CUBANS' ABILITY TO START COTTAGE INDUSTRIES AND HELP THE MORE AGGRESSIVE MANAGERS REVITALIZE STATEOWNED FACTORIES EXPLAINED A SPANISH INVESTOR IN THE TOURIST INDUSTRY BUT WHERE WOULD THE DOLLARS COME FROM THE UNANIMOUS VIEW FROM COMMUNIST PARTY OFFICIALS AND FOREIGN INVESTORS IN CUBA WAS THAT DOLLARIZATION WOULD OPEN A FLOODGATE OF REMITTANCES BY RELATIVES IN THE US AND OTHER COUNTRIES AND RAISE THE AMOUNT TO 1 BILLION A YEAR FROM THE ESTIMATED 300 MILLION SENT IN 1992 IN THE US THIS WOULD DIRECTLY PROVOKE VIOLATIONS OF THE EMBARGO LAWS BUT OFFICIALS AT THE TREASURY DEPARTMENT MAY THROW UP THEIR HANDS LIKE FIDEL CASTRO AND CONCLUDE THAT THERE IS NO WAY THEY CAN POLICE AND CONTROL SUCH ACTIVITY IT MAY BE SWEET IRONY FOR THE CUBAN GOVERNMENT THAT A DECISION TO DOLLARIZE THE ECONOMY MADE IN HAVANA COULD WIND UP BREAKING THE BACK OF THE 32YEAROLD US EMBARGO MR VILLAR PUBLISHER OF MIAMIBASED LATIN AMERICAN BUSINESS REPORTS VISITED CUBA LAST WEEK 9307090120 930709 POLITICS & POLICY WHILE MANY OUTSIDERS CALL WASHINGTON A SWAMP APPOINTED SEN MATHEWS SEES COMFORTS OF HOME BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN HARLAN MATHEWS QUOTES A FORMER TENNESSEE GOVERNOR ON THE PASSING OF POLITICAL POWER ONE DAY YOU HAVE FOUR MILLION PEOPLE AT YOUR BECK AND CALL WILLING TO DO ANYTHING THEY CAN FOR YOU THE NEXT DAY YOU TAKE A TAXI HOME AND HAVE TO HIRE SOMEBODY TO HAVE LUNCH WITH YOU HAVING SAMPLED THE FORMER MR MATHEWS NOW WANTS TO STAVE OFF THE LATTER LATE LAST YEAR WHEN TENNESSEE GOV NED MCWHERTER APPOINTED HIM TO THE SEAT VACATED BY VICE PRESIDENT AL GORE THE 66YEAROLD DEMOCRAT PROMISED TO SERVE AS A QUIET CARETAKER WITHOUT SPENDING A SINGLE HOUR WORRYING ABOUT REELECTION BUT AFTER SIX MONTHS ON THE JOB HE'S HAVING A CHANGE OF HEART TIME GIVES ONE A DIFFERENT PERSPECTIVE SAYS MR MATHEWS A TACITURN VETERAN OF THE STATE BUREAUCRACY SO HE'S BEGUN FUNDRAISING AND POLLING TO EXPLORE HIS CHANCES OF WINNING MR GORE'S SENATE SEAT IN HIS OWN RIGHT HARDLY A DAY GOES BY THAT I DON'T GET ENCOURAGED TO GET IN THERE AND OFFER MYSELF IN NEXT YEAR'S ELECTION HE SAYS MR MATHEWS'S TURNABOUT UNDERSCORES AN UNSHAKABLE TRUTH ABOUT WASHINGTON NO MATTER HOW MUCH OUTSIDE CRITICS DENOUNCE THE CAPITAL AS A SWAMP OF SQUABBLING AND SPECIALINTEREST INFLUENCE THERE'S NEVER A SHORTAGE OF PEOPLE SEEKING TO GET AND STAY INSIDE NO WONDER YOU HAVE TO WATCH YOURSELF BECAUSE THE FULL JOB OF A LOT OF PEOPLE IS TO MAKE 100 SENATORS HAPPY CAUTIONS FORMER SEN KANEASTER HODGES A SMALLTOWN ARKANSAS LAWYER WHO WAS APPOINTED IN 1977 TO COMPLETE THE TERM OF THE LATE SEN JOHN MCCLELLAN BUT DIDN'T SEEK ELECTION ON HIS OWN IF YOU WANTED TO YOU COULD BE ACCOMPANIED ALL YOUR WAKING HOURS BY PEOPLE WHO LAUGHED AT EVERYTHING YOU SAID AND AGREED WITH EVERYTHING YOU SAID THE CHARMS OF LIFE IN THE WORLD'S GREATEST DELIBERATIVE BODY WOULD SEEM ESPECIALLY INTOXICATING FOR SOMEONE LIKE MR MATHEWS WHO HAS NEVER BEFORE HELD ELECTIVE OFFICE AS RECENTLY AS DECEMBER HE WAS A SENIOR BUT LITTLEKNOWN AIDE TO GOV MCWHERTER BY JUNE HE WAS CASTING ONE OF THE 50 ALLIMPORTANT DEMOCRATIC VOTES THAT SQUEAKED PRESIDENT CLINTON'S ECONOMIC PROGRAM THROUGH THE SENATE AND THUS IT'S HARDLY SURPRISING THAT MR MATHEWS NOW THINKS TWICE ABOUT TRADING WASHINGTON FOR NASHVILLE IF YOU'RE A PERSON OF AVERAGE INTELLIGENCE AND REASONABLE GOODWILL YOU MIGHT DECIDE THIS IS YOUR CHANCE TO MAKE A DIFFERENCE IN A MAJOR WAY SAYS GARY JACOBSON A POLITICAL SCIENTIST AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO WHO HAS STUDIED CONGRESSIONAL CAREER CHOICES ANOTHER LURE IS THAT THE REWARDS AREN'T QUITE THE SAME FOR THOSE WHO HAVE THE JOB HANDED TO THEM GIVEN THE POOR ELECTORAL TRACK RECORD OF MOST APPOINTED SENATORS ONE SCHOLARLY ESSAY ON THEIR FATES WAS TITLED TREADMILL TO OBLIVION SENATE COLLEAGUES OFTEN DON'T ACCORD THEM THE RESPECT DUE LONGTERM POLITICAL PLAYERS UNTIL YOU WIN AN ELECTION YOU DON'T REALLY HAVE STRIPES ON YOUR SLEEVE SAYS FORMER APPOINTED SEN DAVID KARNES A NEBRASKA REPUBLICAN WHO LATER LOST TO DEMOCRAT ROBERT KERREY IN 1988 WHETHER IT'S SPOKEN OR UNSPOKEN THERE'S A VERY CLEAR SENSE THAT BEING AN APPOINTED SENATOR YOU'RE NOT GOING TO BE AROUND LONG YOU'RE NOT GOING TO BE ABLE TO GET A WHOLE LOT DONE MR MATHEWS DISCOUNTS THE NOTION THAT HIS CHANGED ATTITUDE STEMS FROM A DESIRE TO BE TAKEN MORE SERIOUSLY BUT HE SAYS REPORTS OF HIS POSSIBLE CANDIDACY HAVE PRODUCED A DIFFERENCE IN PERCEPTION AMONG SENATE COLLEAGUES PEOPLE ARE STOPPING TO TALK AND SAY LOOK WE WANT TO BE HELPFUL' HE SAYS REP JIM COOPER A FELLOW TENNESSEE DEMOCRAT ISN'T ONE OF THEM THE 39YEAROLD FORMER RHODES SCHOLAR WITH THE SUPPORT OF GOV MCWHERTER AND OTHER PARTY LEADERS HAD BEEN COUNTING ON A SMOOTH PATH TO THE DEMOCRATIC NOMINATION FOR THE SEAT NEXT YEAR MR COOPER IS STILL FAVORED TO WIN IT BUT MR MATHEWS'S INCUMBENCY AND HIS PAST PROWESS AS A FUNDRAISER FOR OTHERS SUGGEST HE COULD BECOME A MAJOR HEADACHE WE HAVEN'T TALKED ABOUT IT SAYS MR COOPER IT'S KIND OF A TOUCHY SUBJECT IT'S TOUCHY AS WELL FOR THE DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE MR MATHEWS HAS SOUNDED OUT ITS CHAIRMAN SEN BOB GRAHAM OF FLORIDA ABOUT RECEIVING THE 17500 CASH ALLOCATION THE COMMITTEE NORMALLY SHELLS OUT TO THE CAMPAIGNS OF DEMOCRATIC SENATORS THE COMMITTEE RELUCTANT TO STEP INTO THE AWKWARD SITUATION IS BALKING MR MATHEWS ARGUES THAT THE COMMITTEE DONATION IS A RIGHT OF THE INCUMBENT'S WHILE MR MATHEWS RAISED 100000 FROM A NASHVILLE EVENT TO BANKROLL A POSSIBLE CHALLENGE MR COOPER HAD 184000 IN LEFTOVER FUNDS FROM HIS HOUSE CAMPAIGN IN THE BANK BEFORE EVEN BEGINNING TO RAISE MONEY FOR THE SENATE RACE MR MATHEWS INSISTS HE HASN'T DECIDED WHETHER TO RUN STATE DEMOCRATIC CHAIRMAN BOB THOMAS PREDICTS HE'LL ULTIMATELY STEP ASIDE MR MATHEWS HAS PREVIOUSLY DECLARED HIS INTEREST IN HAVING MR CLINTON APPOINT HIM TO THE BOARD OF THE TENNESSEE VALLEY AUTHORITY MEANWHILE THE SENATOR FENDS OFF BARBS FROM TENNESSEE EDITORIAL WRITERS WHO ACCUSE HIM OF CATCHING POTOMAC FEVER HE ADMITS HE'S DEVELOPED A HEALTHY RESPECT FOR THE SENATE NOTWITHSTANDING HOMESTATE SENTIMENT THAT PEOPLE INSIDE THE BELTWAY ARE OUT OF TOUCH WITH REALITY BUT HE HASTENS TO ADD THAT IT'S NOT THE LIFESTYLE I'M STILL LOOKING FOR ALL THE PERKS THEY TALK ABOUT HE SAYS WITH A GRIN WE HAVE OUR OWN ELEVATORS CAN YOU THINK OF ANOTHER 9307090119 930709 BUSINESS BRIEF CUMMINS ENGINE CO CONCERN TO FORM VENTURE WITH INDIAN MANUFACTURER CUMMINS ENGINE CO AGREED TO FORM A JOINT VENTURE WITH INDIA'S BIGGEST HEAVYVEHICLE MAKER TATA ENGINEERING & LOCOMOTIVE CO THE PLANNED VENTURE WITH THE BOMBAY CONCERN IS SUBJECT TO APPROVAL OF THE INDIAN GOVERNMENT BUT THE US COMPANY ACKNOWLEDGED THAT THE UNION THE LATEST IN A SERIES OF INTERNATIONAL VENTURES FOR CUMMINS REFLECTS INDIA'S RECENT RELAXATION OF STRICTURES ON FOREIGN INVESTMENT CUMMINS THE BIGGEST INDEPENDENT US MAKER OF DIESEL ENGINES SAID THE VENTURE WILL PRODUCE ITS POPULAR B SERIES ENGINES THE VENTURE IS INITIALLY EXPECTED TO PRODUCE ABOUT 60000 OF THE B ENGINES ANNUALLY BEGINNING IN MID1995 COLUMBUS INDBASED CUMMINS SAID TATA ENGINEERING IS THE WORLD'S SIXTHLARGEST MAKER OF MEDIUM AND HEAVY COMMERCIAL VEHICLES AND IS THE LARGEST OF WHAT IS KNOWN AS THE TATA GROUP OF COMPANIES INDIA'S BIGGEST PRIVATE INDUSTRIAL GROUP CUMMINS SHARES ROSE 1625 TO 85875 ON THE NEW YORK STOCK EXCHANGE 9307090118 930709 BUSINESS BRIEF VERIFONE INC CONCERN TO REPORT FLAT NET AS A RESULT OF ORDER DELAYS VERIFONE INC SAID IT WILL REPORT FLAT SECONDQUARTER PERSHARE EARNINGS CONTRARY TO ANALYSTS' EXPECTATIONS OF A SHARP INCREASE AS A RESULT OF ORDER DELAYS THE CONCERN'S STOCK PLUNGED 14 ON THE ANNOUNCEMENT IN NATIONAL OVERTHECOUNTER TRADING SHARES OF THE REDWOOD CALIF COMPANY DECLINED 3875 TO 23875 WALL STREET HAD ANTICIPATED THAT THE COMPANY WOULD EARN 32 CENTS A SHARE IN THE PERIOD ENDED JULY 3 COMPARED WITH NET OF 61 MILLION OR 26 CENTS A SHARE A YEAR EARLIER ACCORDING TO ZACKS INVESTMENT RESEARCH VERIFONE ESTIMATED PERSHARE PROFIT AT 26 CENTS AND SAID REVENUE ROSE AT LEAST 10 TO ABOUT 65 MILLION FROM 587 MILLION IN THE QUARTER THE MAKER OF TRANSACTIONAUTOMATION SYSTEMS SAID ACTUAL RESULTS WILL BE RELEASED IN TWO WEEKS VERIFONE SAID A FEW LARGE ORDERS FROM CUSTOMERS OVERSEAS HADN'T BEEN RECEIVED AS EXPECTED BUT ADDED WE ARE ENCOURAGED BY THE CONTINUED STRENGTH OF OUR CORE FINANCIAL RETAIL BUSINESS IN THE US AND EUROPE 9307090117 930709 ENTERPRISE FOCUS ON FRANCHISING LAFALCE GAINS ALLIES IN HOUSE TO HALT FRANCHISE ABUSES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL SUPPORT GROWS IN CONGRESS FOR NEW FRANCHISE LAWS REP JOHN J LAFALCE THE NEW YORK DEMOCRAT WHO HEADS THE HOUSE SMALL BUSINESS COMMITTEE IS GAINING ALLIES IN HIS LONGRUNNING CAMPAIGN FOR FEDERAL LAWS TO CURB FRANCHISE ABUSES REP LAFALCE LAST WEEK FORMALLY REINTRODUCED THREE FRANCHISING BILLS FOR THE FIRST TIME LISTING MORE THAN A DOZEN COSPONSORS FOR EACH THERE NOW IS A SPECTER OF A BROADBASED BIPARTISAN COALITION SUPPORTING SOME KIND OF FRANCHISE LEGISLATION AND THAT'S PRETTY FRIGHTENING SAYS NEIL A SIMON A WASHINGTON LAWYER FOR FRANCHISERS FRANCHISERS NEED TO REDOUBLE THEIR LOBBYING EFFORTS HE SAYS FRANCHISERS DENY THAT ABUSES ARE WIDESPREAD AND SAY THAT THE PROPOSED CURBS WOULD STUNT THE GROWTH OF A VIBRANT PART OF THE ECONOMY AMONG REP LAFALCE'S NEW COSPONSORS IS REP RON WYDEN D ORE A MEMBER OF THE ENERGY AND COMMERCE COMMITTEE WHICH WOULD HAVE TO APPROVE MAJOR PORTIONS OF THE PROPOSED BILLS REP LAFALCE'S PROPOSALS WOULD BROADEN FRANCHISER DISCLOSURES TO POTENTIAL FRANCHISEES AND PLACE NEW CURBS ON FRANCHISERS IN THEIR RELATIONSHIP WITH FRANCHISEES NEW SUPPORT FOR REP LAFALCE WAS ALSO EVIDENT AT A SMALL BUSINESS COMMITTEE HEARING LAST WEEK ON THE ROLE OF MINORITIES IN FRANCHISING ONE SIGNIFICANT SUPPORTER WAS REP KWEISI MFUME THE MARYLAND DEMOCRAT WHO HEADS THE BLACK CAUCUS AFTER LISTENING TO WITNESSES WHO CRITICIZED FRANCHISERS REP MFUME COMMENTED IT'S LIKE LIVING A NIGHTMARE HEARING SOME OF THIS TESTIMONY FRANCHISERS LIVED A DIFFERENT NIGHTMARE WHEN THEY REALIZED THAT A FASTFOOD FRANCHISEE HAD BEEN ELECTED TO CONGRESS AND NOW IS A SMALL BUSINESS COMMITTEE MEMBER WHO BACKS REP LAFALCE ON FRANCHISING REP JAY DICKEY AN ARKANSAS REPUBLICAN SAYS HE LONG OPERATED BUSINESSES ON THE SIDE WHILE WORKING AS A LAWYER HIS HOLDINGS STILL INCLUDE TWO PINE BLUFF ARK RESTAURANTS FRANCHISED BY PEPSICO INC'S TACO BELL UNIT HE SAYS HE HAS OWNED FRANCHISES INCLUDING BOTH SUCCESSES AND FAILURES UNDER THREE OTHER FRANCHISE SYSTEMS AS WELL AFTER WITNESSES COMPLAINED THAT MINORITY FRANCHISEES ARE OFTEN STUCK WITH UNDESIRABLE TERRITORIES BECAUSE OF FRANCHISER BIAS REP DICKEY RESPONDED I HAVE SEEN THAT HAPPEN THOUGH HE NAMED NO FRANCHISER INVOLVED A GRATEFUL REP LAFALCE SAYS REP DICKEY GIVES GREAT CREDIBILITY TO ARGUMENTS FOR HIS BILLS A SLAVERY ANALOGY SENDS THE SPARKS FLYING IN THE FRANCHISING DEBATE AT THE SMALL BUSINESS COMMITTEE HEARING REP MFUME SAID OF THE TIES BETWEEN FRANCHISER AND FRANCHISEE IN MANY RESPECTS IT'S THE OLD MASTERSLAVE RELATIONSHIP ALL OVER AGAIN SUCH RHETORIC INFURIATES FRANCHISERS WHO HAVE LONG ACCUSED THEIR CRITICS OF MAKING EXAGGERATED CLAIMS BUT IT MAY HELP TO MOBILIZE BLACK MEMBERS OF CONGRESS BEHIND THE LAFALCE BILLS WHILE MANY BLACKS SEE FRANCHISING AS A DOOR OF OPPORTUNITY FOR POOR PEOPLE TO ESTABLISH BUSINESSES CRITICS SAY RACIST ATTITUDES IN SOME PARTS OF THE INDUSTRY HOBBLE MINORITIES SEVEN BLACK OR HISPANIC CONGRESSMEN ARE AMONG THE EARLY COSPONSORS FOR REP LAFALCE'S BILLS ABOUT HALF OF THE TOTAL SUPPORT TO DATE REP MFUME SAID HE WAS IMPRESSED BY THE TESTIMONY OF JOSEPH E SANCHEZ JR A FORMER BALTIMORE FRANCHISEE OF MCDONALD'S CORP MR SANCHEZ ACCUSED THE FRANCHISER OF DISCRIMINATING AGAINST HIM BECAUSE HE IS HISPANIC IN PART BY SELLING HIM A FRANCHISE IN A LOWINCOME HIGHCRIME NEIGHBORHOOD RATHER THAN AN AFFLUENT AREA REP MFUME WHO IS FROM BALTIMORE TOLD MR SANCHEZ AT THE HEARING THAT A BLACK MAN OWNED THE SAME MCDONALD'S FRANCHISE IN 1981 AND HAD THE EXACT SAME HORROR STORIES THAT YOU HAVE INDEED REP MFUME SAYS HE ONCE LED A TWOWEEK PROTEST BOYCOTT AT THE SITE BECAUSE OF MCDONALD'S TREATMENT OF FRANCHISEES THERE A MCDONALD'S SPOKESMAN NOTES THAT A FEDERAL JUDGE IN MAY DISMISSED COURT CHARGES AGAINST THE COMPANY BY MR SANCHEZ WHO IS APPEALING THE DISMISSAL THE SPOKESMAN ALSO SAYS THERE HAS BEEN NO HISTORY OF DISCRIMINATION AT THE BALTIMORE SITE OR ELSEWHERE HE SAYS REP MFUME IS MISTAKEN IN THINKING THAT HIS PROTEST OCCURRED AT THE SAME RESTAURANT THAT MR SANCHEZ LATER OPERATED THE MASTERSLAVE ANALOGY STRIKES ME AS TOTALLY INAPPROPRIATE THE MCDONALD'S SPOKESMAN ADDS FRANCHISING HE ADDS IS A PARTNERSHIP OF MUTUAL EXPECTATIONS AND MUTUAL COMMITMENTS FRANCHISER CONCESSIONS AIM TO HEAD OFF DISPUTES AND LEGISLATION RATHER THAN TAKING A HARD LINE AS MANY FRANCHISERS DO SPECIALISTS SAY SOME MAVERICKS ARE VOLUNTARILY REVISING THEIR CONTRACTS AND OPERATING PROCEDURES TO GIVE FRANCHISEES MORE RIGHTS THESE FLEXIBLE FRANCHISERS HOPE TO MAKE THEIR SYSTEMS MORE ATTRACTIVE TO FRANCHISE BUYERS WHILE POSSIBLY HEADING OFF LAWSUITS AND NEW FEDERAL OR STATE FRANCHISING LAWS GREAT CLIPS INC A MINNEAPOLIS FRANCHISER OF FAMILY HAIR SALONS SAYS IT RECENTLY GAVE FRANCHISEES MORE PROTECTION AGAINST ENCROACHMENT ON THEIR STORES BY FUTURE UNITS IN THE CHAIN EACH FRANCHISEE ALREADY HAD AN EXCLUSIVE TERRITORY USUALLY BOUNDED BY A CIRCLE WITH A RADIUS OF THREEQUARTERS OF A MILE NOW EACH FRANCHISEE ALSO HAS FIRSTREFUSAL RIGHTS TO OWN ANY NEW UNITS OUTSIDE THE CIRCLE BUT WITHIN 125 MILES OF THEIR STORES RAYMOND L BARTON PRESIDENT SAYS GREAT CLIPS RESPONDED TO FRANCHISEE CONCERN THAT ENCROACHMENT IS BECOMING A GREATER THREAT AS THE MARKET MATURES CARVEL CORP A FARMINGTON CONN FROZENDESSERT FRANCHISER IS ADDRESSING A DIFFERENT TYPE OF ENCROACHMENT ISSUE IT HAS BEGUN SELLING ITS PRODUCTS THROUGH SUPERMARKETS AND CONVENIENCE STORES A POSSIBLE THREAT TO FRANCHISEES' SALES AT THEIR SPECIALTY STORES SO CARVEL SAYS IT VOLUNTARILY IS MAKING COOPERATION PAYMENTS TO THE FRANCHISEES MOST LIKELY TO BE AFFECTED THEY GET 5 OF CARVEL'S REVENUE FROM THE NEW BUSINESS ALTERNATIVELY THE FRANCHISEES CAN BECOME THE DISTRIBUTORS TO THE NEW CUSTOMERS IF THEY THINK THEY CAN EARN MORE THAN THE 5 TOO OFTEN FRANCHISERS AND FRANCHISEES HAVE BEEN STOPPING EACH OTHER FROM GROWING AND IMPROVING THEIR PROFITABILITY SAYS STEVEN V FELLINGHAM CARVEL CHIEF EXECUTIVE OFFICER BRIEFS TWO DOZEN FRANCHISERS PLAN TO CONVENE IN BUENOS AIRES NEXT MONTH TO EXPLORE INVESTMENT OPPORTUNITIES IN LATIN AMERICA THE INTERNATIONAL FRANCHISE ASSOCIATION THE MAJOR FRANCHISER TRADE GROUP SAYS IT WILL ADD TWO FRANCHISEES TO ITS BOARD WHICH HAS NEVER BEFORE HAD FRANCHISEES THE IFA WILL ALSO CREATE A MEMBERSHIP CATEGORY FOR FRANCHISEES 9307090116 930709 TWO MEN ARE ARRESTED IN LOANFRAUD CASE INVOLVING FIVE BANKS NEW YORK LOCAL PROSECUTORS SAID THEY ARRESTED TWO MEN AND ARE PLANNING TO ARREST A THIRD ON CHARGES OF BRIBERY AND OF FRAUDULENTLY OBTAINING OVER 28 MILLION IN LOANS FROM FIVE BANKS MANHATTAN DISTRICT ATTORNEY ROBERT M MORGENTHAU SAID THE CHARGES RESULT FROM HIS OFFICE'S CONTINUING PROBE INTO THE NOWDEFUNCT BANK OF CREDIT & COMMERCE INTERNATIONAL OF THE LOANS FRAUDULENTLY OBTAINED 168 MILLION WERE FROM BCCI MR MORGENTHAU SAID THE INDICTMENT CHARGES PONNAPULA SANJEEVA PRASAD WHO IS CURRENTLY IN INDIA WITH MASTERMINDING THE FRAUD THROUGH HIS CONTROL OF A GROUP OF COMPANIES KNOWN AS PRASAD GROUP HIS BROTHER MURALI KRISHNA PONNAPULA OF MEMPHIS TENN WAS CHARGED WITH BEING A PARTICIPANT IN THE SCHEMES AND NASIM A SYED WHO LIVES IN RONKONKOMA NY AND IS A FORMER OFFICIAL AT THE NEW YORK OFFICE OF BANK OF OMAN WAS CHARGED WITH ALLEGEDLY ACCEPTING 53000 IN BRIBES FROM PRASAD GROUP AN ATTORNEY FOR MR PRASAD AND MR PONNAPULA SAID HIS CLIENTS ABSOLUTELY DENY THE CHARGES AND BELIEVE THEY WILL BE EXONERATED MR PRASAD PLANS TO RETURN TO THE US FROM INDIA AND CONTEST THE CHARGES THE ATTORNEY ADDED AN ATTORNEY FOR MR SYED SAID HIS CLIENT DENIES THE CHARGES IN ADDITION TO THE BCCI LOANS 59 MILLION IN LOANS WERE FRAUDULENTLY OBTAINED FROM THE BANK OF INDIA 14 MILLION FROM THE STATE BANK OF INDIA 25 MILLION FROM BRANCH BANKING & TRUST CO OF GREENVILLE NC AND 15 MILLION FROM BANK OF OMAN LTD PROSECUTORS SAID 9307090115 930709 REVIEW & OUTLOOK EDITORIAL RODNEY DANGERFIELD MEETS I601 YOU DON'T HAVE TO BE A SUFI TO KNOW THAT THE CLINTON ADMINISTRATION AMERICA'S 43 SOLUTION SINCERELY BELIEVES IN HYPERACTIVE GOVERNMENT FORTIFIED BY TAXES OF THE SORT THAT THE HOUSESENATE CONFERENCE WILL TAKE UP THIS MONDAY NOT SURPRISINGLY THE ADMINISTRATION'S MEDDLESOME BUREAUCRATS SEE THE FINEST EXPRESSION OF THE NATION'S SPIRIT IN THE ADVENTURES OF MEDDLESOME BUREAUCRATS THEIR FERVOR HAS GIVEN NEW MEANING TO THE WORD NUDNIK THEIR MOTTOES IF POSSIBLE INTERVENE ALWAYS COMPLICATE EVERYTHING ARE BEGINNING TO BE REALIZED ON A HEROIC SCALE BY A HALFDOZEN TAX INCREASES THE HOLY CRUSADE AGAINST GREENHOUSE GASES A HEALTH CARE GOSPLAN AND MANY OTHER INITIATIVES OF FERNBAR SOCIALISM MOST OF ALL THEY WILL NEED A LOT OF NEW REVENUE AND THEY WILL GET IT EITHER BY PUTTING THE AMERICAN TAXPAYER IN THE JUICER OR BY PRINTING MONEY AFTER ALAN GREENSPAN IS LURED INTO THE SPIDER'S NEST NOT FOR SNUGGLING BUT AS A MEAL A REMEDY FOR ALL THIS CAN BE FOUND IN GENERAL ELECTIONS AND ALSO IN THE INITIATIVE THIS INCREASINGLY POPULAR AND POPULIST APPROACH TO GOVERNMENT IS THE DEEP OCEAN'S ANSWER TO TRANSIENT STORMS UPON ITS SURFACE THOUGH NOT ALL INITIATIVES ARE OF EQUAL MERIT NONE OF THEM CAN BE SPOOKED SIDETRACKED OR BRIBED LIKE POLITICIANS THE STATE OF WASHINGTON'S GOVERNOR MIKE LOWRY A BILL CLINTON THINKALIKE AND DEAD RINGER FOR RODNEY DANGERFIELD IS BUSY CREATING EXTENDING AND INCREASING TAXES NO MATTER THAT MOST OF THESE TAXES ADVERSELY AFFECT JOB CREATION AS BOEING LAYS OFF THOUSANDS OF EMPLOYEES THEY WILL BE USED TO RECAST ONE OF THE NATION'S BEST HEALTH CARE SYSTEMS AND HIRE MORE BUREAUCRATS AND 100 MILLION IN NEW REVENUE MAY BE COYLY DIVERTED TOWARD A GENERAL FUND WHERE THE TEACHERS UNIONS WILL BE ABLE TO GET AT IT BUT GOVERNOR DANGERFIELD'S HYPERKINESIA HAS NOT GONE UNCHALLENGED REPUBLICAN STATE SENATOR LINDA SMITH HAS SUCCESSFULLY BARNSTORMED THE STATE ON BEHALF OF INITIATIVE 601 THE TAXPAYER PROTECTION ACT WHICH WILL NOW GO ON THIS NOVEMBER'S BALLOT IT WOULD ALLOW SPENDING TO GROW ONLY AS MUCH AS INFLATION AND POPULATION INCREASES REQUIRED FOR MAINTAINING CURRENT REAL LEVELS OF SERVICE EXCESS REVENUES WOULD FLOW INTO A RAINY DAY FUND THAT COULD BE TAPPED ONLY AFTER A SUPERMAJORITY OF THE LEGISLATURE OFFERED ITS CONSENT ADDITIONAL PROVISIONS WOULD PROTECT THE TREASURY FROM BUREAUCRATIC SPENDING SCAMS AND REQUIRE SUPERMAJORITIES FOR RAISING BOTH TAXES AND FEES I601 SEPARATES THOSE WHO WANT TO TAX AND SPEND FROM THOSE WHO WANT TO RESTRAIN TAXING AND SPENDING IT DISTINGUISHES THOSE WHO WOULD AUGMENT THE POWER OF THE STATE FROM THOSE WHO WOULD BRING THAT POWER BACK TO THE VOTERS IT HAS SUPPORT A SEATTLE POSTINTELLIGENCER SURVEY THIS MONTH FOUND SUPPORT FOR 601 RUNNING AT 66 INCLUDING 58 OF DEMOCRATS AS IT MAKES THESE THINGS CLEAR IT BECOMES ONE OF THE MANY ANSWERS THAT MAY BE OFFERED OVER THE NEXT FOUR YEARS TO THE 43 SOLUTION COLORADO'S TERRY CONSIDINE THE FATHER OF THE TERM LIMIT MOVEMENT HOPES TO PUT I601 STYLE RESOLUTIONS ON THE BALLOTS OF 15 STATES AS ONE OF THE PROPONENTS OF I601 SAID TO US WHO IN THEIR RIGHT MIND WOULD EVER BE OPPOSED TO SUCH A THING 9307090114 930709 BUSINESS BRIEF HOWELL CORP ACQUISITION OF MINERAL RIGHTS FOR 18 MILLION ACRES IS SET HOWELL CORP SAID IT AGREED TO ACQUIRE THE MINERAL RIGHTS FOR 18 MILLION ACRES IN MISSISSIPPI ALABAMA AND LOUISIANA FOR 241 MILLION FROM THE FEDERAL INTERMEDIATE CREDIT BANK IN JACKSON MISS THE ACREAGE HAS PROVEN RESERVES OF ONE MILLION BARRELS OF OIL EQUIVALENT THE RESERVES HAVE STAYED FLAT FOR THE PAST 15 YEARS SAID A SPOKESWOMAN FOR HOUSTONBASED HOWELL NEW WELLS ARE CONTINUOUSLY BEING DRILLED ON THE PROPERTIES REPLACING THE DEPLETED ONES SHE SAID HOWELL SAID IT ANTICIPATES STEADY INCOME FROM ROYALTIES ON EXISTING WELLS AND EXPECTS TO LEASE NEW PROSPECTS TO OTHER COMPANIES FOR DEVELOPMENT THE ACQUISITION SUBJECT TO FURTHER NEGOTIATION IS EXPECTED TO BE COMPLETED IN EARLY AUGUST THE OIL EXPLORATION AND PRODUCTION COMPANY SAID 9307090113 930709 BUSINESS BRIEF GTE CORP CHARGE OF 46 MILLION IS SET FOR 2ND PERIOD DUE TO CUTS GTE CORP STAMFORD CONN SAID IT WILL TAKE AN AFTERTAX CHARGE OF 46 MILLION FOR THE SECOND QUARTER TO REFLECT COSTS RELATED TO RECENTLY COMPLETED STAFFREDUCTION PROGRAMS IN ITS PHONE OPERATIONS IN THE 1992 SECOND QUARTER GTE EARNED 446 MILLION OR 49 CENTS A SHARE ON REVENUE OF 51 BILLION EXCLUDING THE ONETIME CHARGE GTE SAID IT EXPECTS TO MEET ANALYSTS' EARNINGS ESTIMATES FOR THIS YEAR'S QUARTER ABOUT 6400 GTE TELEPHONEOPERATIONS EMPLOYEES OR 79 OF THE DOMESTIC WORK FORCE OF 81000 HAVE ACCEPTED VARIOUS VOLUNTARY SEPARATION PROGRAMS SINCE MAY 5 GTE SAID AS A RESULT OF THE PROGRAMS THE TELECOMMUNICATIONS CONCERN EXPECTS PRETAX COST SAVINGS OF ABOUT 125 MILLION IN 1993 AND ANNUAL PRETAX SAVINGS OF MORE THAN 250 MILLION IN SUBSEQUENT YEARS 9307090112 930709 MARKETING PROCTER SENSES OPPORTUNITY IN POSH PERFUME BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI PROCTER & GAMBLE CO HAS STARTED A MAJOR MARKETING CAMPAIGN IN THE US FOR ITS FIRST LUXURY PERFUME CREATION A GAMBLE FOR THE COMPANY BEST KNOWN FOR SELLING SOAP AND TOOTHPASTE THIS MONTH P&G WILL BEGIN SELLING LAURA BIAGIOTTI'S VENEZIA IN SUCH UPSCALE DEPARTMENT STORES AS SAKS FIFTH AVENUE AND I MAGNIN WITH PLANS TO HIT 1200 DEPARTMENT AND SPECIALTY STORES BY YEAREND THAT WILL PIT IT AGAINST SUCH ESTABLISHED FRAGRANCES AS ESTEE LAUDER'S WHITE LINEN AND BEAUTIFUL CALVIN KLEIN'S OBSESSION ETERNITY AND ESCAPE CHANEL NO 5 AND TRESOR BY LANCOME THIS IS A RELATIVELY NEW MARKET FOR P&G WHICH HAS PLENTY OF EXPERIENCE MASSMARKETING LOWERPRICED SCENTS TO WOMEN AND MEN INCLUDING NAVY INCOGNITO CALIFORNIA AND OLD SPICE JOSEPH CICIO CHIEF EXECUTIVE OFFICER OF I MAGNIN WHICH WILL START CARRYING VENEZIA IN LATE JULY SAYS THE FLORAL SCENT AND ELABORATE PACKAGING WILL WIN CUSTOMERS THE FRAGRANCE IS VERY COMMERCIAL HE SAYS I THINK IT'LL EASILY FIND A VERY BROAD AUDIENCE BUT GABRIEL D LOWY AN ANALYST WITH OPPENHEIMER & CO QUESTIONS WHETHER P&G'S SOAP MERCHANTS CAN NAVIGATE THE RARIFIED WORLD OF DEPARTMENT STORES AND SPECIALTY BOUTIQUES AND SURVIVE CUTTHROAT COMPETITION IN THE SLOWGROWTH PRESTIGE FRAGRANCE CATEGORY INSTEAD OF CONVINCING CUSTOMERS ABOUT THE EFFECTIVENESS AND SAFETY OF ITS DETERGENTS AND DIAPERS IT MUST SELL IMAGE AND ROMANCE WHY ARE THEY TARGETING THE HIGHEND PERFUME MARKET WHEN THE PRODUCT LIFE CYCLES ARE SO SHORT AND THE LAUNCH COSTS ARE SO HIGH MR LOWY ASKS ADDS A FORMER P&G MANAGER WHO IS NOW WITH A RIVAL FRAGRANCE AND COSMETICS COMPANY IT'S GOING TO TAKE THEM AWHILE TO UNDERSTAND THE FRAGRANCE BUSINESS THEY DO NOT HAVE EXPERIENCE SELLING EMOTIONAL PRODUCTS P&G TOOK OWNERSHIP OF SEVERAL PRESTIGE FRAGRANCE LINES IN 1991 INCLUDING HUGO BOSS FRAGRANCES FOR MEN AND AN ALREADY EXISTING LAURA BIAGIOTTI PERFUME ROMAWHEN IT ACQUIRED REVLON'S EUROCOS UNIT BUT VENEZIA IS THE FIRST UPSCALE PERFUME THAT P&G HAS DEVELOPED AS IT LAUNCHES VENEZIA P&G WILL ALSO TRY TO INCREASE SALES OF HUGO BOSS AND ROMA IN THE US WITH ADVERTISING AND PROMOTIONAL CAMPAIGNS ROMA GENERATED 100 MILLION IN WORLDWIDE SALES LAST YEAR BUT LESS THAN 3 MILLION IN US SALES P&G PLANS TO DOUBLE THE NUMBER OF STORES THAT CARRY ROMA TO 400 FROM 200 BY YEAREND HUGO BOSS FRAGRANCES HAD 130 MILLION IN WORLDWIDE SALES LAST YEAR BUT ONLY 10 MILLION OF THEM CAME FROM THE US WHERE THE SCENTS ARE AVAILABLE IN 1200 SPECIALTY AND DEPARTMENT STORES ALL TOLD P&G WANTS TO TRIPLE US SALES OF HIGHEND FRAGRANCES TO 90 MILLION ACCORDING TO PEOPLE CLOSE TO THE COMPANY EUROCOS'S WORLDWIDE SALES ARE NOW 330 MILLION P&G SEES VENEZIA AS A WEDGE INTO DEPARTMENT STORES WHICH REMAIN THE NO 1 PERFUME OUTLET DESPITE SOME EROSION TO DRUGSTORE CHAINS AND SPECIALTY STORES IT ALSO SEES THE PERFUME AS AN OPPORTUNITY TO BROADEN ITS COSMETICS AND FRAGRANCE LINEUP TO THE UPPER END OF THE MARKET THE SEVEN VARIETIES OF VENEZIA RANGE IN PRICE FROM 80 FOR A QUARTEROUNCE BOTTLE OF PERFUME TO 25 FOR BODY CREME WE HAVE DECIDED THAT VENEZIA WHICH IS A WINNER IN EUROPE WILL BE OUR MAJOR VEHICLE TO ENTER THE FINE FRAGRANCE BUSINESS IN THE US SAYS WERNER HOFFMAN PRESIDENT OF P&G'S EUROCOS USA UNIT IT IS A DECLARED POLICY OF THE COMPANY TO BE IN PRESTIGE COSMETICS AND FRAGRANCES TO PROTECT THE UPPER END OF THE MARKET SELLING VENEZIA IN THE US IS ALSO A PET PROJECT OF P&G'S CHAIRMAN EDWIN L ARTZT WHO MADE A PERSONAL APPEAL TO DEPARTMENTSTORE BUYERS AND FASHION EDITORS AT A GLITZY RECEPTION LAST JANUARY AT NEW YORK'S ST REGIS HOTEL VENEZIA WAS LAUNCHED IN NINE EUROPEAN COUNTRIES LAST SEPTEMBER P&G IS DIVING INTO A MARKET THAT HAS SEEN LOW GROWTH DURING THE ECONOMIC DOWNTURN CANNIBALIZATION IS THE NAME OF THE GAME SAYS SUSAN BABINSKY OF KLINE & CO A COSMETICS AND TOILETRY CONSULTANT P&G IS ALSO PLAYING CATCHUP WITH RIVALS UNILEVER NV AND COSMAIR INC WHICH HAVE COMMANDING POSITIONS AT BOTH ENDS OF THE PERFUME MARKET ANGLODUTCH UNILEVER WHICH OWNS THE CALVIN KLEIN FRAGRANCES AS WELL AS ELIZABETH TAYLOR'S PASSION AND WHITE DIAMONDS MASS MARKETS WIND SONG AND BRUT COSMAIR SELLS SUCH HIGHEND PERFUMES AS TRESOR AND GIORGIO ARMANI'S GIO ALONG WITH LESS EXPENSIVE BRANDS SUCH AS GLORIA VANDERBILT P&G IS POURING MONEY INTO ADVERTISING PEOPLE CLOSE TO THE COMPANY SAY IT WILL SPEND ABOUT 15 MILLION THIS YEAR ON MARKETING MS BABINSKY SAYS THAT IS A COMPETITIVE LEVEL OF SPENDING FOR A PERFUME LAUNCH AND EXPECTS US SALES OF 20 MILLION TO 25 MILLION THE CAMPAIGN INCLUDES FULLPAGE ADS WITH SCENT STRIPS IN GLOSSY MAGAZINES MODELS STROLLING THROUGH DEPARTMENT STORES WITH SAMPLES AND TELEVISION AND RADIO SPOTS THE PERFUME NAMED FOR THE CITY OF VENICE HAS A SWEET SLIGHTLY FRUITY FLAVOR P&G DESCRIBES IT AS FLORAL ORIENTAL AND CONTAINS TINY GOLD FLAKES THE COMPANY SAYS IT USES AN EXTRACT OF THE SECRET MAGICAL WONGSHI BLOSSOM WHICH WAS FIRST BROUGHT TO VENICE FROM THE ORIENT BY MARCO POLO THE BOTTLE'S POINTED GOLDEN CAP IS MEANT TO EVOKE THE CAMPANILE OF SAN GIORGIO MAGGIORE A CHURCH IN VENICE AND ITS SLIGHTLY UNEVEN SHAPE IMITATES HANDBLOWN VENETIAN GLASSWARE THE FIRST LAURA BIAGIOTTI HAUTE COUTURE BOUTIQUE OPENED LAST WINTER ON FASHIONABLE WEST 57TH STREET IN NEW YORK AND IS CURRENTLY THE ONLY OUTLET IN THE US THAT CARRIES VENEZIA THE FRAGRANCE WILL BE AVAILABLE AT SOME SAKS STORES STARTING JULY 11 AND LATER IN THE MONTH AT A NUMBER OF OTHER STORES INCLUDING MARSHALL FIELD'S AND I MAGNIN BROADER DISTRIBUTION WILL BEGIN IN LATE SUMMER DEPARTMENTSTORE BUYERS CONCEDE THAT FEW AMERICANS KNOW WHO LAURA BIAGIOTTI IS BUT THEY BELIEVE VENEZIA'S SCENT AND PACKAGING COMBINED WITH P&G'S MARKETING EXPERTISE AND BUDGET WILL HELP THE FRAGRANCE ALONG LAURA BIAGIOTTI'S NOT A HOUSEHOLD WORD ON THE ORDER OF RALPH LAUREN OR CALVIN KLEIN SAYS ALLEN BURKE DIVISIONAL MERCHANDISE MANAGER FOR DAYTON'S HUDSON'S AND MARSHALL FIELD'S DEPARTMENT STORES BUT BY THE SAME TOKEN SHE'S A WELLKNOWN NAME FOR THOSE WHO ARE FAMILIAR WITH THE DESIGN COMMUNITY 9307090111 930709 SEMICONDUCTOR INDUSTRY'S KEY INDICATOR SLIPS AGAIN SAN JOSE CALIF THE LEADING INDICATOR FOR THE SEMICONDUCTOR INDUSTRY CONTINUED ITS DOWNWARD SLIDE ALTHOUGH ORDERS AND SHIPMENTS ARE HEALTHY THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID ITS BOOKTOBILL RATIO FOR JUNE STOOD AT 110 DOWN FROM A REVISED MAY RATE OF 113 THE RATIO INDICATES THAT FOR EVERY 100 IN CHIPS SHIPPED THE INDUSTRY OBTAINED 110 WORTH OF ORDERS THE RESULTS ARE CONSIDERED HEALTHY REFLECTING BOOMING PERSONALCOMPUTER SALES THE FIGURE PEAKED AT 120 IN JANUARY A YEAR AGO IT WAS 114 NEW ORDERS BASED ON A THREEMONTH AVERAGE ROSE 09 TO 224 BILLION IN JUNE FROM 222 BILLION IN MAY SHIPMENTS BASED ON A SIMILAR AVERAGE CLIMBED 35 TO 204 BILLION FROM 197 BILLION SEPARATELY AN INDUSTRY EXPERT PREDICTED THE CHIPINDUSTRY BOOM WOULD TURN INTO A RECESSION IN 1994 TRIGGERED BY THE BUILDUP IN INVENTORIES THE EXPERT IS DR MOSHE HANDELSMAN OF ADVANCED FORECASTING INC IN CUPERTINO CALIF 9307090110 930709 POTOMAC WATCH OOPS WEREN'T WE GOING TO SOAK THE RICH BY PAUL A GIGOT ON HIS WAY OUT THE DOOR IN JANUARY A CHEEKY BUSH OFFICIAL SCRIBBLED THE SAME TAX PHRASE AGAIN AND AGAIN ON A TREASURY BLACKBOARD FOR THE NEW CLINTON TEAM LOW RATES BROAD BASE THE INCOMING CLINTON TREASURY MINIONS MORE RUEFUL THAN CHEEKY ERASED THE PHRASE EACH TIME THE NEW WHITE HOUSE REQUESTED EVER HIGHER TAX RATES MARK THE RUEFUL DOWN AS PROPHETS THE FIRST EVIDENCE ON INCOMETAX RECEIPTS FOR 1991 IS NOW ROLLING IN FROM THE INTERNAL REVENUE SERVICE AND THE USUAL EYEGLAZING NUMBERS ARE SUDDENLY EYEPOPPING TO WIT THE RICH PAID LESS IN TAXES EVEN THOUGH THEIR TAX RATES WENT UP THE NONRICH PAID MORE EVEN THOUGH THEIR TAX RATES STAYED THE SAME PRESIDENT CLINTON MEET THE LAFFER CURVE THIS NEWS IS THE ELEPHANT IN THE ROOM OF THIS YEAR'S TAX DEBATE SINCE WE KEEP HEARING THAT THE FATE OF THE WORLD HANGS ON PRESIDENT CLINTON'S PROMISE TO REDUCE THE DEFICIT BY 500 BILLION MOST OF THIS WINDFALL MR CLINTON ASSURES US WILL COME FROM THE RICH BUT WHAT IF THOSE TAX REVENUES FROM THE RICH TURN OUT TO BE A MIRAGE THEN ISN'T THE CLINTON TAX PROGRAM DOOMED TO FAIL EVEN AS MERE DEFICIT REDUCTION AND SHOULDN'T DEMOCRATS THINK AGAIN BEFORE THEY COMMIT TAX HARIKARI AT NEXT WEEK'S HOUSESENATE CONFERENCE OF COURSE THEY SHOULD BUT THIS YEAR'S DEMOCRATIC THEME SONG SEEMS TO BE THAT OLD MASH MOVIE ANTHEM SUICIDE IS PAINLESS THE 1991 NUMBERS ARE SO STRIKING BECAUSE THEY'RE THE FIRST SINCE THE GREAT 1990 BUDGET DEAL WHICH WAS MORE OR LESS THE TEST DRIVE FOR CLINTONOMICS RATES HAD TO BE RAISED ON THE RICH WE WERE TOLD THEN IN ORDER TO PRODUCE A RIVER OF NEW TAX REVENUE WELL THIS IS ONE RIVER THAT DIDN'T RUN THROUGH IT FOR WE NOW KNOW THAT TOTAL INCOMETAX RECEIPTS FELL IN 1991 THE FIRST DECLINE SINCE 1983 AND THEY FELL IN A STRANGE AND REVEALING WAY AS THE CHART BELOW SHOWS FOR THE RICH DEFINED AS THE TOP 850000 INCOMEEARNERS IN EACH YEAR MAKING ABOUT 200000 OR MORE 1991 TAX RECEIPTS FELL BY 65 BILLION OR 61 BUT FOR EVERYONE ELSE TAX RECEIPTS ACTUALLY ROSE IN 1991 BY 33 BILLION OR 1 THIS ODD DICHOTOMY MAKES IT DIFFICULT TO ATTRIBUTE THE REVENUE DECLINE MERELY TO A SLOW ECONOMY THE RICH WOULDN'T HAVE A BAD YEAR IF EVERYONE ELSE HAD A GOOD ONE AND IN FACT TOTAL INCOME ROSE 33 FOR THE YEAR SO WHAT HAPPENED TO THE RICH IT'S IMPOSSIBLE TO KNOW FOR SURE BUT THE LIKELY ANSWER IS THAT THEY CHANGED THEIR BEHAVIOR IN RESPONSE TO HIGHER RATES MAYBE THEY SHELTERED MORE INCOME OR STUFFED MORE OF IT INTO 1990 TO TAKE ADVANTAGE OF THAT YEAR'S LOWER RATES OR PERHAPS THEY WORKED LESS IN SHORT THEY RESPONDED TO INCENTIVES AS ECONOMISTS SAY AND PRODUCED LESS INCOME SUBJECT TO TAX THIS REVERSEWINDFALL IS UNDERSCORED BY OTHER 1991 NUMBERS INCOME FROM BUSINESSES FELL 55 FOR THE RICH BUT ROSE 22 FOR THE NONRICH FOR SOCALLED SUBCHAPTER S SMALL BUSINESSES WHICH WOULD GET SLAMMED AGAIN BY MR CLINTON INCOME DOVE 105 FOR THE RICH BUT ROSE 62 FOR EVERYONE ELSE ALL OF WHICH PROVES WHAT POPULIST MIDDLECLASS FREEMARKETEERS LIKE ME CALL THE PARADOX OF PROGRESSIVITY TO REALLY SOAK THE RICH KEEP THEIR TAX RATES LOW LISTEN TO MARTIN FELDSTEIN THE HARVARD ECONOMIST WHO HAS NEVER BEEN MISTAKEN FOR A WILD SUPPLYSIDER THE EVIDENCE IS STRONG THAT IN 1991 THEY PICKED UP RATES AT THE TOP AND REVENUE FELL THIS SHOULD MAKE DEMOCRATS THINK TWICE ABOUT WHETHER THE TAX RATES THEY'RE NOW TALKING ABOUT WILL RAISE THE REVENUES THEY EXPECT MR FELDSTEIN FIGURES THEY'LL GET ONLY ABOUT A QUARTER OF THE 25 BILLION A YEAR THEY ADVERTISE THE CLINTON ADMINISTRATION KNOWS ALL THIS BY THE WAY BUT WANTS IT KEPT QUIET UNTIL THE TAX BILL PASSES TREASURY ECONOMIST ALICIA MUNNELL IS IN DENIAL EVEN THOUGH HER STAFF HAS CALCULATED THAT MR FELDSTEIN IS RIGHT TREASURY'S LARRY SUMMERS KNOWS BETTER BUT IS PREOCCUPIED WITH JAPAN AND TRADE OTHER DEMOCRATS DON'T EVEN WANT TO HEAR ABOUT IT THAT'S BECAUSE FOR THEM TAXING THE RICH IS ABOUT CLASSWAR POLITICS NOT REVENUE IT'S ABOUT HAVING A FOIL TO RUN AGAINST BUT THAT'S NO EXCUSE FOR REPUBLICANS WHO'VE BEEN JUST AS SILENT ABOUT ALL THIS BOB DOLE'S TIMID SENATE REPUBLICANS DIDN'T EVEN OFFER AN AMENDMENT TO STRIP THE HIGHER RATES OUT OF THE TAX BILL OHIO REP JOHN KASICH SUPPOSEDLY THE BOY WONDER OF THE BUDGET HAS MADE PEOPLE WONDER BY ENDORSING HIGHER RATES LIKE GEORGE BUSH AND NICHOLAS BRADY TOO MANY REPUBLICANS ARE STILL AFRAID JAMES CARVILLE MIGHT ACCUSE THEM OF BELONGING TO A COUNTRY CLUB BUT NOW IS THE TIME TO LAY DOWN MARKERS FOR THE NEXT ECONOMIC DEBATE EDUCATING VOTERS ABOUT THE CON JOB THEY ARE ABOUT TO EXPERIENCE AN OPTIMIST SAID LAST YEAR THAT EITHER THE CLINTON PRESIDENCY WOULD BE SUCCESSFUL OR IT WOULD BE EDUCATIONAL BUT THAT ASSUMES SOMEONE DOES THE EDUCATING 9307090109 930709 HIGHER TAXES LOWER REVENUES BY ROBERT J BARRO ALTHOUGH THE DEBATE OVER THE ADMINISTRATION'S TAX PACKAGE HAS FOCUSED ON ENERGY LEVIES THE BULK OF THE PROJECTED REVENUE COMES FROM INCREASES IN MARGINAL INCOMETAX RATES ON THE RICH THIS REVENUE UNDERLIES THE ADMINISTRATION'S CONTENTION THAT THE FISCAL PACKAGE IS AN EQUAL MIX OF SPENDING CUTS AND TAX INCREASES AND ALSO FORMS THE BASIS OF ALTERNATIVE ESTIMATES THAT PEG THE RATIO OF SPENDING CUTS TO TAX INCREASES AT BETWEEN 1 TO 2 AND 1 TO 5 A KEY ISSUE HOWEVER IS WHETHER INCREASES IN MARGINAL TAX RATES AT THE TOP WILL RAISE ANY REVENUE AT ALL THE HISTORY OF RESPONSES TO TAXRATE CHANGES FROM 1981 TO 1991 SUGGESTS THAT THE RECEIPTS GENERATED BY THIS PART OF THE FISCAL PACKAGE PROBABLY WILL BE CLOSE TO ZERO AND MAY ACTUALLY BE NEGATIVE UPPERINCOME PEOPLE ARE VERY RESPONSIVE TO CHANGES IN THE TAX CODE THAT IS THEY READILY MOVE THEIR MONEY AROUND OR CHANGE THEIR BEHAVIOR IN RESPONSE TO NEW TAX LAW THE DEBATE ABOUT RATIOS IN THE ADMINISTRATION'S PROPOSALS HAS THEREFORE HAD A SURREAL CHARACTER IF CONGRESS DECIDES TO ABANDON ALL NEW LEVIES ON ENERGYLEVIES THAT WOULD HARM THE ECONOMY BUT REALLY WOULD RAISE THE KIND OF REVENUE LEGISLATORS ARE LOOKING FOR THEN TAX RECEIPTS WOULD BE ROUGHLY CONSTANT THE MAGICAL RATIO OF SPENDING CUTS TO TAX INCREASES COULD THEN BE INFINITE EVEN THOUGH THE PACKAGE CONTAINS LITTLE IN SPENDING CUTS AMAZINGLY NEITHER THE DEMOCRATS NOR THE REPUBLICANS WANT TO MAKE THIS ARGUMENT THE DEMOCRATS OF COURSE DO NOT WANT TO ACKNOWLEDGE THAT THE HIGHER TAX RATES ON THE RICH WILL GENERATE LITTLE REVENUE THE REPUBLICANS DO NOT WANT TO PRESS THE POINT BECAUSE FIRST THEY DO NOT WANT TO LOOK LIKE THE ADVOCATES OF THE RICH AND SECOND IF TAX RECEIPTS DO NOT RISE THEN THEY COULD NOT ARGUE THAT THE DEMOCRATS HAD RAISED TAXES FALLING HERE INTO THE COMMON CONFUSION BETWEEN TAX RATES AND REVENUES ONE WOULD HAVE THOUGHT HOWEVER THAT AN INCREASE IN TAX RATES THAT PRODUCES NO REVENUE IS EVEN WORSE THAN ONE THAT GENERATES LOTS OF REVENUE FOR THE TOP 05 OF THE INCOME DISTRIBUTION THE MOST IMPORTANT CHANGES ARE THE SHIFTS IN THE MARGINAL TAX RATES AT HIGH INCOMES FOR MOST OF THE YEARS 1960 TO 1980 YEARS WITH RELATIVELY HIGH TOP MARGINAL RATES THE HIGHINCOME GROUP CONTRIBUTED WELL UNDER 20 AND EVEN 15 OF THE REVENUE PIE BUT EVEN MORE RELEVANT IS THE 198191 PERIOD IT FEATURED A CUT IN THE TOP MARGINAL RATE ON UNEARNED INCOME TO 50 FROM 70 IN THE 1981 LAW A CUT IN THE TOP RATE ON ALL FORMS OF INCOME TO 28 IN THE 1986 LAW EXCEPT THAT THIS LAW RAISED THE TOP RATE ON LONGTERM CAPITAL GAINS TO 28 FROM 20 AND AN INCREASE IN THE TOP RATE TO 31 OR A COUPLE OF PERCENTAGE POINTS MORE BECAUSE OF PHASEOUT PROVISIONS FOR DEDUCTIONS IN THE 1990 LAW THE FIRST OBSERVATION FROM THE FIGURE IS THAT THE INCREASE IN REPORTED TAXABLE INCOMES OF THE RICH AFTER THE 1981 LAW WAS GREAT IT WAS SO GREAT THAT THE SHARE OF TAXES PAID BY THIS GROUP ROSE TO 18 IN 198485 FROM 14 IN 1981 DESPITE OR RATHER BECAUSE OF THE REDUCTION IN THE TOP MARGINAL TAX RATE THE LAFFER CURVE ARGUES THAT INCREASING TAX RATES BEYOND A CERTAIN POINT MEANS LOWER REVENUES AND THAT CUTTING RATES WIDENS REVENUES THE MUCHRIDICULED CURVE TURNED OUT TO WORK BRILLIANTLY AT UPPERINCOME LEVELS THE SHARE THE RICH PAID IN TAXES FOR 1986 21 IS INFLATED BY THE SURGE IN CAPITALGAIN REALIZATIONS IN ANTICIPATION OF THE RISE IN THE CAPITALGAINS TAX RATE IN 1987 BUT THE PRINCIPAL OBSERVATION ABOUT THE 1986 REFORMS IS THAT THE SHARE PAID BY THIS GROUP REMAINED BETWEEN 20 AND 22 FROM 1986 TO 1990 WELL ABOVE THE VALUES FROM BEFORE 1986 IN 1988 THE FINAL YEAR OF THE REAGAN ADMINISTRATION AND IN THAT SENSE THE PINNACLE OF THE GREEDY 1980S THE SHARE OF TAXES PAID BY THE RICH REACHED ITS PEAK OF 22 I DO NOT KNOW WHETHER ONEFIFTH IS A FAIR SHARE FOR THE TOP 05 OF INCOME RECIPIENTS TO PAY BUT IT DOES MEAN THAT THE AVERAGE PERSON IN THIS GROUP PAYS 40 TIMES AS MUCH IN FEDERAL INCOME TAXES AS THE TYPICAL PERSON ADDITIONAL EVIDENCE CAME WHEN THE RISE IN THE TOP RATE IN THE 1990 LAW WAS FOLLOWED BY A DECLINE IN THE FRACTION OF TAXES PAID BY THE RICH TO 19 IN 1991 FROM 20 IN 1990 THUS THE PATTERN IN WHICH CHANGES IN THE TOP TAX RATES CAUSE A DRAMATIC RESPONSE IN THE OPPOSITE DIRECTION OF REPORTED TAXABLE INCOMES WORKS FOR TAXRATE INCREASES AS WELL AS FOR TAXRATE DECREASES THIS FINDING IS SIGNIFICANT BECAUSE THE CURRENT INCOMETAX PROPOSALS ARE BASICALLY MORE OF THE SAME THAT WAS CONTAINED IN THE 1990 LAW TREASURY OFFICIALS CLAIM THAT THEIR ESTIMATES OF LARGE REVENUE GAINS FROM INCREASED TAX RATES ON THE RICH ALREADY TAKE ACCOUNT OF BEHAVIORAL RESPONSES THAT LOWER THE BASE OF REPORTED TAXABLE INCOME THIS CLAIM IS MISLEADING HOWEVER BECAUSE THE RESPONSES THAT THE TREASURY SEEMS TO CONSIDER ARE PORTFOLIO SHIFTS SUCH AS THE INCREASED INCENTIVE TO HOLD TAXEXEMPT BONDS AN EFFECT THAT HAS TO BE TRIVIAL IF THE TOTAL SUPPLY OF TAXEXEMPT BONDS DOES NOT CHANGE LEFT OUT OF THESE CALCULATIONS ARE THE PRINCIPAL SHIFTS IN REPORTED INCOMES THAT UNDERLIE THE DATA IN THE FIGURE THE DETAILS OF THESE SHIFTS ARE NOT WELL UNDERSTOOD BUT THEY SEEM TO INVOLVE CHANGES IN THE TIMING OF INCOME EXPLOITATION OF TAX LOOPHOLES AND ALTERATIONS IN WORK EFFORT PEOPLE WORK HARDER AFTER TAX CUTS IN ANY EVENT THE BEST WAY TO PROJECT HOW TAX PAYMENTS BY THE RICH WILL REACT TO CHANGES IN TAX RATES IS TO USE THE INFORMATION PROVIDED BY THE HISTORY OF THE RESPONSES TO THE 1981 1986 AND 1990 TAX LAWS AND THE TREASURY'S ESTIMATES FAIL TO TAKE ACCOUNT OF THE CLEAR MESSAGE FROM THIS HISTORY SUPPOSE THAT IT IS TRUE THAT THE HIGHER TAX RATES ON THE RICH WILL NOT RAISE REVENUE EVEN SO THE RICH WILL SUFFER FROM THE HIGHER TAX RATES THE VARIOUS METHODS EMPLOYED TO LOWER TAXABLE INCOME INCLUDING CREATING TAX LOOPHOLES AND WORKING LESS ARE UNDESIRABLE ACTIVITIES THAT THESE PEOPLE WOULD HAVE PREFERRED TO AVOID THE INCOMETAX PROPOSALS WILL SUCCEED IN BURDENING THE RICH EVEN IF THEY FAIL TO GENERATE REVENUE TO ME IT IS OBVIOUS THAT A TAXRATE BOOST THAT MAKES ONE GROUP SUFFER EVEN THE RICH BUT PROVIDES NO REVENUE IS BAD ECONOMIC POLICY SINCE I DO NOT TRUST MY INSTINCTS HOWEVER I SURVEYED SOME LIBERAL FRIENDS WHAT DO YOU THINK OF A POLICY THAT MAKES THE RICH WORSE OFF BUT PRODUCES NO REVENUE AND THEREFORE PROVIDES NO DIRECT BENEFITS FOR THE NONRICH REMARKABLY THE RESULTS WERE MIXED SOME OF THE RESPONDENTS WOULD BE WILLING TO GIVE UP RESOURCES REVENUE AND IN FACT SUFFER THEMSELVES FOR THE SAKE OF TAKING AWAY MONEY FROM THE RICH SO THAT SOME MEASURES OF INCOME INEQUALITY WOULD NARROW APPARENTLY THE PRESENCE OF WEALTHY PEOPLE IS VIEWED AS SIMILAR TO ENVIRONMENTAL POLLUTION ONE CAN ONLY HOPE THAT THIS VIEWPOINT IS NOT THE MAIN DRIVING FORCE BEHIND THE ADMINISTRATION'S ECONOMIC POLICIES OTHERWISE THE ECONOMY WILL BE IN SERIOUS TROUBLE MR BARRO A WALL STREET JOURNAL CONTRIBUTING EDITOR IS PROFESSOR OF ECONOMICS AT HARVARD DAN FEENBERG OF THE NATIONAL BUREAU OF ECONOMIC RESEARCH ASSISTED IN THE PREPARATION OF THIS ARTICLE 9307090108 930709 COMMODITIES PETROLEUM PRICES CONTINUE TO FALL ON PROSPECTS UN MAY ALLOW IRAQ TO SELL 16 BILLION IN OIL BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM PRICES CONTINUED TO FALL BECAUSE OF PROSPECTS IRAQI OIL MAY BEGIN FLOWING INTO WORLD OIL MARKETS SOON LATE RALLIES IN VOLATILE TRADING IN BOTH NEW YORK AND LONDON HELPED CRUDE OIL RECOVER SOME OF THE DAY'S LOSSES STILL THE PRICE OF LOWSULFUR CRUDE FOR AUGUST DELIVERY DROPPED 23 CENTS A BARREL ON THE NEW YORK MERCANTILE EXCHANGE TO SETTLE AT 1779 THAT WAS THE LOWEST SETTLEMENT PRICE FOR THE SOCALLED NEARMONTH CRUDE IN THREE YEARS SINCE JUST BEFORE IRAQ'S INVASION OF KUWAIT WHICH BEGAN THE PERSIAN GULF CRISIS AND LED TO THE UNITED NATIONS SANCTIONS INCLUDING A BAN ON IRAQI OIL SALES CRUDE OIL FUTURES ALSO WERE DOWN SHARPLY IN LONDON WHERE FUTURES PRICES FELL TO A 29MONTH LOW BEFORE RECOVERING SOME AT THE CLOSE THE BRENT BLEND FUTURES PRICES WERE DOWN BETWEEN 28 CENTS AND 34 CENTS A BARREL ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE ANALYSTS ATTRIBUTED THE OIL MARKET'S BEARISH SENTIMENT ENTIRELY TO WIDESPREAD CONCERN THAT IRAQI AND UN REPRESENTATIVES ARE CLOSE TO SOME SORT OF AN AGREEMENT THAT WILL ALLOW IRAQ TO GO AHEAD WITH A TWOYEAROLD PROPOSAL TO SELL 16 BILLION WORTH OF OIL FOR HUMANITARIAN PURPOSES IF IT HAPPENS THAT WILL ADD 500000 TO 600000 BARRELS A DAY TO OIL MARKETS ALREADY OVERSUPPLIED WITH CRUDE PRODUCED BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES UNTIL THE LAST TWO OR THREE WEEKS NOBODY EXPECTED IRAQI OIL TO BE MARKETED THIS YEAR SAID LAWRENCE GOLDSTEIN PRESIDENT OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION NOW HE SAID OILSALE PROSPECTS FOR IRAQ HAVE GONE FROM ZERO TO SOME MEASUREABLE PROBABILITY THERE WAS LITTLE NEWS DURING TRADING HOURS YESTERDAY FROM THE SECOND DAY OF IRAQIUN TALKS ON THE ONETIME EMERGENCY OIL SALE THE DAY'S SECOND SESSION BEGAN AFTER THE FUTURES MARKET HAD CLOSED BUT DURING A BREAK IN THE SESSIONS EARLIER IN THE DAY RIYADH ALQAISSY THE IRAQI DEPUTY FOREIGN MINISTER SAID IRAQ WAS READY TO STAY AS LONG AS NECESSARY TO CONCLUDE A ONETIME SALE PRICES FELL FURTHER ON HIS REMARKS THEN TECHNICAL FACTORS TOOK OVER AS THE AUGUST CRUDE CONTRACT BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 1772 A BARREL THAT ADDED TO THE SELLING PRESSURES SAID THOMAS BLAKESLEE AN ENERGY ANALYST WITH BRODY WHITE & CO THE PRICE OF THE AUGUST CRUDE DROPPED AS LOW AS 1755 A BARREL DURING THE DAY THAT FAILED TO MATCH THE INTRADAY LOW OF 1745 A BARREL IN FEBRUARY 1991 BUT YESTERDAY'S SETTLEMENT PRICE WAS THE LOWEST FOR A NEARMONTH CRUDE SINCE JULY 1990 THERE HAVE BEEN SOME SUGGESTIONS THAT THE UN NOW MAY BE ANXIOUS TO GET IRAQ TO GO AHEAD WITH THE ONETIME OIL SALE BECAUSE IT NEEDS FUNDS TO CONTINUE ITS INSPECTIONS AND MONITORING OF IRAQI ADHERENCE TO THE PERSIAN GULF CEASEFIRE IF THE IRAQI OIL SALE WERE MADE THE UN WOULD RECEIVE 5 OF THE 16 BILLION OR 80 MILLION FOR MONITORING EXPENSES INDUSTRY SOURCES SAID YESTERDAY IT MAY ONLY BE COINCIDENCE THAT SAUDI ARABIA A LEADING FOE OF IRAQ AND A CHIEF BENEFICIARY OF IRAQI OIL BEING OUT OF THE MARKET MADE ANOTHER CONTRIBUTION OF 40 MILLION TO THE UN ESCROW ACCOUNT JUST THE OTHER DAY THE SAUDI CONTRIBUTION IS TO BE MATCHED BY A LIKE AMOUNT FROM THE US FOR A TOTAL OF 80 MILLION PRECIOUS METALS GOLD FUTURES PRICES EASED ON PROFITTAKING FOLLOWING TWO CONSECUTIVE DAYS OF STRONG GAINS THAT HAD PUT THE PRECIOUS METAL IN STRIKING RANGE OF THE SYMBOLIC 400 AN OUNCE LEVEL ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY SHED 220 TO SETTLE AT 39560 AN OUNCE TRADING AT THE EXCHANGE WAS CURTAILED FOR MORE THAN 30 MINUTES TOWARD THE END OF THE SESSION AS A RESULT OF TELEPHONE PROBLEMS AN EXCHANGE OFFICIAL SAID AS FAR AS WE KNOW THE PROBLEM IS SOLVED THE OFFICIAL SAID TRADERS SAID THAT GOLD MIGHT HAVE TROUBLE TODAY SETTLING ABOVE THE 400 LEVEL LAST REACHED IN EARLY JANUARY 1991 I THINK GOLD MIGHT CONSOLIDATE A LITTLE AT THIS LEVEL BEFORE MOVING THROUGH 400 SAID DENISE GIORDANO WHO RUNS THE PRECIOUS METALS DESK FOR SWISS BANK IN NEW YORK IT WOULD BE HEALTHY FOR THE MARKET TO BUILD A BIT OF BASE AT THIS LEVEL BEFORE BREAKING THROUGH SHE SAID ADDING IT GIVES PEOPLE CONFIDENCE THAT WE HAVE SOME KIND OF SUPPORT LEVEL SILVER FOR DECEMBER DELIVERY ALSO DROPPED BACK SKIDDING 51 CENTS TO 5132 AN OUNCE ON THE COMEX PLATINUM FOR OCTOBER DELIVERY SETTLED 240 LOWER AT 40940 ON THE NEW YORK MERCANTILE EXCHANGE WHILE PALLADIUM FOR SEPTEMBER DELIVERY SHED 200 TO 13600 ON THE NEW YORK MERC GRAINS AND SOYBEANS GRAIN FUTURES PRICES RETREATED ON WIDESPREAD PROFITTAKING AS TRADERS CAPITALIZED ON WEATHERRELATED PRICE INCREASES OVER THE PAST MONTH BY SELLING FUTURES CONTRACTS SOYBEANS FOR NOVEMBER DELIVERY FELL SIX CENTS TO 709 A BUSHEL WHILE CORN FOR DECEMBER DELIVERY WAS DOWN FIVE CENTS TO 25275 A BUSHEL ANALYSTS SAID THE NATIONAL WEATHER SERVICE SUFFERED A POWER OUTAGE OVERNIGHT WEDNESDAY WHICH KEPT THE SERVICE FROM PROVIDING ITS REGULAR EXTENDED FORECAST YESTERDAY THE LACK OF AN EXTENDED WEATHER FORECAST EXERTED DOWNWARD PRICE PRESSURE ON THE CHICAGO BOARD OF TRADE'S GRAIN MARKET WHICH HAS BEEN HYPERSENSITIVE TO WEATHER LATELY TO A WEATHER MARKET THE LACK OF A FORECAST IS LIKE A JUNKIE NOT HAVING HIS FIX SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO 9307090107 930709 WASHED OUT FLOODS IN THE MIDWEST ERODE FARM PROSPECTS ALONG WITH THE FIELDS REGION'S ECONOMY CAN COPE BUT BAD LOANS MAY RISE AND SO MAY FOOD PRICES SELLING FEWER NEW TRACTORS BY WALL STREET JOURNAL STAFF REPORTERS SCOTT KILMAN THOMAS M BURTON AND RICHARD GIBSON MUD FLIES AS GARY JOHNSON SKIDS DOWN A HILL ON A HONDA THREEWHEELER TO WHAT IS NORMALLY THE RICHEST SECTION OF HIS KEOKUK IOWA FARM IT WON'T BE THE RICHEST THIS YEAR THE SWOLLEN DES MOINES RIVER HAS MADE IT A VAST LAKE NEARLY AS DEEP AS THE EIGHTFOOTTALL CORN IT USUALLY PRODUCES I CAN WATER SKI ON MY FIELDS MR JOHNSON SAYS GLUMLY HE AND HIS WIFE WONDER HOW DEEP THEY WILL HAVE TO DIP INTO SAVINGS TO COPE WITH LOSSES FROM THE DELUGE WHICH HAS TURNED HUGE REACHES OF THE FARM BELT INTO A QUAGMIRE LUCKILY WE PUT MONEY AWAY FOR A RAINY DAY SHARON JOHNSON SAYS INTENDING NO PLAY ON WORDS AS MORE THUNDERSTORMS DRENCHED THE MIDWEST YESTERDAY AGGRAVATING SOME OF THE WORST FLOODING THE MISSISSIPPI AND ITS TRIBUTARIES HAVE SEEN THE ESTIMATES OF DAMAGE TO CROPS PROPERTY BUSINESSES AND RIVER TOWNS JUMPED PAST 2 BILLION ECONOMISTS BEGAN TO RAISE THEIR FORECASTS OF FOOD INFLATION AND TRIM PROJECTIONS OF US GRAIN EXPORTS MIDWEST FARMERS HAVEN'T LOST SO MANY CROPS TO RAIN IN NEARLY HALF A CENTURY THE SIZE OF THIS FALL'S PROJECTED CORN AND SOYBEAN HARVEST HAS SHRUNK ROUGHLY 9 IN RECENT WEEKS ECONOMISTS SAY AND WILL RAPIDLY FADE FURTHER IF THE SKIES DON'T PART SOON ESTHERVILLE IOWA IS GETTING THE AMOUNT OF RAIN THAT NORMALLY FALLS ON NEW ORLEANS IN GRAF IOWA ONE MAN GRUMBLES THAT WE SHOULD HAVE PLANTED RICE INSTEAD OF CORN FOR THE MOST PART THE US AGRICULTURE SECTOR APPEARS STRONG ENOUGH TO COPE FARMERS STILL CHASTENED BY THE WRENCHING RECESSION THEY WENT THROUGH IN THE 1980S HAVE KEPT THEIR DEBT LEVELS LOW FARM BANKS ARE HEALTHY NOW MANY FARMERS HAVE CORN FROM A RECORD 1992 HARVEST TO SELL TO ELEVATORS AND THE ELEVATORS ARE PAYING NEARLY 8 MORE THAN JUST A MONTH AGO THANKS TO THE FLOODS SOYBEAN PRICES HAVE LEAPT 18 IN SOME MARKETS IN THE PAST MONTH EVEN SO OPTIMISM IN FARM COMMUNITIES IS ERODING ALONG WITH RIVERBANKS AND BOTTOM LAND HIGHER PRICES RARELY MAKE UP FOR SMALLER CROPS BECAUSE QUALITY ALSO SUFFERS FARM BANKS NOW WORRY ABOUT A RISE IN DELINQUENCIES DEALERS IN FARM EQUIPMENT FEAR THAT A MINIBOOM THEY ENJOYED EARLIER THIS YEAR IS GONE BUSINESS IS DOWN FOR MANY CHEMICAL DEALERS BECAUSE FIELDS ARE TOO MUDDY TO APPLY PESTICIDES FARMERS MAY NOT HAVE THE MONEY OR IF THEY DO THEY MAY NOT BE INCLINED TO SPEND IT SAYS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP A MINNEAPOLIS BANK HOLDING COMPANY SCOTT MITCHELL A CORN AND SOYBEAN FARMER NEAR LAKE PARK IOWA IS PUTTING OFF PLANS TO BUY NEW CARPET AND TWO NEW DOORS FOR HIS HOUSE BECAUSE HE EXPECTS A 40 DROP IN YIELDS THIS YEAR AMONG AMERICA'S TWO MILLION FARM OPERATORS ROUGHLY 10 ARE CONSIDERED FINANCIALLY OVEREXTENDED SO ECONOMISTS GUESS THAT RAIN WILL WASH OUT THOUSANDS MORE THIS YEAR THAN THE TYPICAL ANNUAL EXODUS OF 15000 OR SO CALLS TO A COUNSELING TELEPHONE HOT LINE FOR IOWA FARMERS JUMPED 22 LAST MONTH FROM A YEAR AGO AS RIVERS BEGAN LEAVING THEIR BANKS WE'LL SEE MORE IOWA FARMERS GO OUT OF BUSINESS THIS YEAR ALTHOUGH IT WILL BE NOTHING REMOTELY LIKE THE 1980S DEBT CRISIS SAYS NEIL HARL AN IOWA STATE UNIVERSITY ECONOMIST AND FARM DEBT EXPERT SOME ECONOMISTS ARE LOPPING 1 BILLION OFF THEIR FORECAST FOR 1993 NET CASH INCOME OF ABOUT 60 BILLION FOR ALL US FARMERS THE RAINY WEATHER IS DEPRESSING WALL STREET TOO EARLIER THIS WEEK ANALYSTS BEGAN LOWERING THEIR SIGHTS FOR SOME AGRIBUSINESS GIANTS THAT NOW HAVE TO COPE WITH PASSING ALONG HIGHER CROP COSTS THEY INCLUDE ARCHERDANIELSMIDLAND CO WHICH GRINDS 12 MILLION BUSHELS OF CORN DAILY TO MAKE EVERYTHING FROM SODAPOP SWEETENER TO ETHANOL FUEL AND POULTRY PRODUCER TYSON FOODS INC ANOTHER BIG USER OF CORN OTHER COMPANIES KEEPING AN EYE ON THE WEATHER RANGE FROM RAILROADS BURLINGTON NORTHERN INC AND UNION PACIFIC CORP WHICH HAVE HAD SOME TRACK WASHED OUT TO BARGE OPERATORS AND MACHINERY MAKERS LIKE DEERE & CO IF THE HIGHER PRICES HOLD SEED COMPANIES SUCH AS PIONEER HIBRED INTERNATIONAL INC MIGHT BENEFIT NEXT YEAR AS FARMERS PLANT MORE ACRES ECONOMISTS ARE HAVING A HARDER TIME GAUGING THE FALLOUT FROM THIS CASUALTY THAN THE 1988 DROUGHT WHICH EVENTUALLY SHRANK THE CORN CROP 33 THE RULE OF THUMB IS THAT DROUGHTS HIT ABOUT ONCE EVERY SEVEN YEARS ENABLING CROP ANALYSTS TO DEVELOP COMPUTER SYSTEMS THAT FACTOR IN TOO MUCH HEAT AND TOO LITTLE RAIN THEY ARE LESS PREPARED FOR TOO MUCH RAIN LAST YEAR TRADERS WERE SURPRISED WHEN CORN GROWERS DESPITE THE SECONDCHILLIEST SUMMER OF THE CENTURY MANAGED TO HARVEST A RECORD CROP BUT THIS YEAR IS MORE THAN JUST WET FOR SOME TOWNS IT IS SHAPING UP TO BE THE WETTEST ON RECORD UP TO FIVE MILLION ACRES FROM NEBRASKA TO MINNESOTA TO ILLINOIS EITHER WERE TOO MUDDY TO PLANT OR GOT WASHED OUT OF THE CORN AND SOYBEANS THAT DID GET PLANTED AN ESTIMATED 133 MILLION ACRES MUCH IS GROWING SO SLOWLY IN THE SOGGY WEATHER THAT PLANTS ARE ONLY HALF AS TALL AS NORMAL THAT MEANS THEY MAY NOT BE FULLY MATURE BEFORE THE GROWING SEASON RUNS OUT OR MAY BE MATURE BUT HIGH IN MOISTURE AND HARD TO STORE THESE ARE UNCHARTED WATERS SAYS PETER LEAVITT CHAIRMAN OF WEATHER SERVICES CORP OF BEDFORD MASS SHOULD THE WEATHER RETURN TO NORMAL VERY SOON CROPS COULD QUICKLY REBOUND EVEN THOUGH SOME FERTILIZER HAS ALREADY BEEN LEACHED OFF BY RAINFALL IRONICALLY THOUGH A DRY SPELL COULD BE A DISASTER THAT IS BECAUSE WITH THE SOIL SATURATED PLANTS HAVEN'T PUT DOWN DEEP ROOTS WITH THEIR FIELDS MUDDY MANY FARMERS CAN'T TEND CROPS WEEDS MUST BE CURBED WITH HERBICIDES OR MECHANICALLY CULTIVATED AND FERTILIZER REPLACED LOWLAND FARMERS MIGHT LOSE EVERYTHING WHILE HILLY FARMS REAP BUMPER CROPS AT WINDFALL PRICES ONE CASUALTY OF MOTHER NATURE'S UNEVEN HAND IS BRENT WERTS WHO FARMS 1200 ACRES NEAR MILLERTON IOWA WITH A NEIGHBOR LAST YEAR WEATHER KEPT HIM FROM HARVESTING HIS CORN CROP UNTIL NEW YEAR'S DAY NEARLY TWO MONTHS LATE THIS YEAR THE VULNERABLE YOUNG SHOOTS IN HIS FIELDS ARE STRUGGLING RIGHT AT THE MOMENT IT LOOKS LIKE A REAL UPHILL BATTLE TO BREAK EVEN BY FALL HE SAYS THE WEATHER ISN'T WET EVERYWHERE THOUGH CROPS LOOK FINE IN THE EASTERN CORN BELT SUCH AS OHIO AND INDIANA FARMERS IN THE SOUTHERN PLAINS ARE HARVESTING A 12 BIGGER WINTER WHEAT CROP THAN LAST YEAR GROWERS IN THE RED RIVER VALLEY ON THE MINNESOTANORTH DAKOTA BORDER EXPECT GOOD HARVESTS OF SPRING WHEAT SOYBEANS SUGAR BEETS AND SUNFLOWERS AND A DROUGHT IS BUDDING IN THE SOUTHEASTERN US EXTRA RAIN IS NO CALAMITY IN FREQUENTLY PARCHED CENTRAL SOUTH DAKOTA WE'RE JUST PERFECT THIS PLACE IS HUMMING SAYS JIM DITTMAN A FARMEQUIPMENT SALESMAN AT THE PIONEER GARAGE IN HIGHMORE SD BUT IN SOUTHEASTERN SOUTH DAKOTA BOTTOM LANDS ALONG THE MISSOURI THE VERMILLION AND THE BIG SIOUX RIVERS ARE FLOODING BEN VANOSDEL A FARMEQUIPMENT SALESMAN AT MARKS MACHINERY IN YANKTON PREDICTS A SALES DROP AS WARY FARMERS TRY TO GET BY WITH NEW PARTS FOR OLD MACHINERY IN MINNESOTA PAUL LINDHOLM PRESIDENT OF THE SECURITY STATE BANK IN FERGUS FALLS AND LAST YEAR'S STATE BANK ASSOCIATION PRESIDENT WORRIES THAT AS MUCH AS HALF THE CROPS COULD BE LOST IN THE GRAINRICH SOUTHERN HALF OF THE STATE THOUSANDS OF MINNESOTA FARMERS WON'T BE ABLE TO REPAY LOANS TAKEN FOR PLANTING SUPPLIES HE FEARS HE EXPECTS SOME TO BECOME INSOLVENT HIS SON STEVE LINDHOLM PRESIDENT OF FARMERS AND MERCHANTS STATE BANK IN CLARKFIELD ESTIMATES THAT ONEFIFTH OF FARMERS IN HIS SOUTHWEST MINNESOTA AREA WILL HAVE A HARD TIME GETTING LOANS NEXT YEAR WE'RE LOOKING AT A 70 CROP OF CORN SOYBEANS AND WHEAT HE SAYS IF IT KEEPS ON RAINING OR WE GET EARLY FROST WE COULD GET ALMOST NOTHING THE AGRICULTURE DEPARTMENT'S FARMERS HOME ADMINISTRATION LONG THE LENDER OF LAST RESORT TO FARMERS ANTICIPATES HAVING TO REWORK MANY IOWA LOANS A SURVEY CONCLUDES THAT NEARLY 80 OF THE STATE'S COUNTIES WILL LOSE 30 OR MORE OF AT LEAST ONE CROP SOME BORROWERS WILL HAVE TO LOOK AT DOWNSCALING OR FINDING A NEW WAY OF MAKING A LIVING SAYS CHRIS BEYERHELM THE AGENCY'S FARMER PROGRAM CHIEF IN IOWA THE GOVERNMENT ALREADY IS PREPARING TO BAIL OUT THE MIDWEST THE AGRICULTURE DEPARTMENT HAS EARMARKED 397 MILLION IN DISASTER FUNDS AND SIGNALED TO CONGRESS THAT IT MIGHT NEED 850 MILLION MORE RAISING MONEY FOR FARM CALAMITIES USUALLY ISN'T TOO DIFFICULT IN WASHINGTON BECAUSE RISING GRAIN PRICES CUT THE COST OF FEDERAL PRICE SUPPORTS A 10CENT RISE IN THE PRICE OF CORN FOR EXAMPLE SAVES THE GOVERNMENT 500 MILLION BUT IT IS THE PRICE OF SOYBEANS THAT HAS CLIMBED THE MOST BECAUSE SUPPLIES ALREADY WERE SPARSE BEFORE THE RAINS CAME AND SOYBEAN GROWERS DON'T HAVE A PRICE SUPPORT PROGRAM SO THERE IS LITTLE ROOM TO JUGGLE THE USDA BUDGET GOVERNMENT SURVEYS WON'T GIVE A CLEARER IDEA OF THE DAMAGE TO MIDWEST CORN AND SOYBEAN FIELDS UNTIL NEXT MONTH FOR NOW ADMINISTRATION OFFICIALS SAY THE FEDERAL AID WILL BE FAR LESS THAN THE 4 BILLION SPENT DURING THE 1988 DROUGHT WHICH CAME ON THE HEELS OF A RURAL DEPRESSION FOR CONSUMERS THE RALLY IN SOYBEANS WILL LIGHTEN WALLETS A BIT SOYBEAN MEAL CRUSHED FROM THE BEANS MAKES UP 20 OF THE COST OF RAISING POULTRY AND HOGS AND MEAT REPRESENTS HALF OF THE CONSUMER PRICE INDEX FOR FOOD GRAIN TRADERS SOMETIMES REFER TO CHICKENS AS SOYBEANS WITH WINGS WHEN THE PRICE OF SOYBEAN FUTURES CONTRACTS SHOT ABOVE THE 7ABUSHEL LEVEL EARLIER THIS WEEK ECONOMIST PAUL PRENTICE RAISED HIS FOOD INFLATION FORECAST FOR 1993 TO 3 FROM HIS ORIGINAL FORECAST OF 25 WE'RE CLEARLY GOING TO HAVE A SHOCK TO FOOD PRICES SAYS MR PRENTICE PRESIDENT OF FARM SECTOR ECONOMICS INC IN COLORADO SPRINGS COLO HE SAYS HE WILL RAISE HIS FOOD INFLATION FORECAST AGAIN IF SOYBEAN PRICES BREAK 8 A BUSHEL IN THE SHORT RUN MEAT PRICES MIGHT ACTUALLY FALL AS RISING FEED COSTS PROMPT FARMERS TO CULL THEIR HERDS DURING THE 1988 DROUGHT A WAVE OF LIVESTOCK WENT TO MEATPACKERS WHICH THEN SENT A FLOOD OF MEAT TO SUPERMARKETS BUT THE CULLING OF HERDS EVENTUALLY COSTS CONSUMERS BECAUSE SUPPLIES TIGHTEN LATER THE FOOD INFLATION RATE JUMPED TO 58 IN 1989 AND 1990 FROM 41 IN THE DROUGHT YEAR IN KNOB NOSTER MO RANCHER HAROLD HURD IS PUTTING 20 FEWER CALVES ON HIS PASTURES WHICH MEANS FEWER FAT CATTLE FOR MEATPACKERS BY WINTER THE WET WEATHER HAS MADE HIS PASTURES LUSH BUT THE PRICE OF CALVES HAS JUMPED THE RALLY IN GRAIN PRICES NOW IS MAKING THE FATTENING OF CATTLE ON FEEDLOTS MORE EXPENSIVE AND POTENTIALLY LESS PROFITABLE THE LAST FEW YEARS HAVE BEEN GOOD TO US SAYS MR HURD BUT RIGHT NOW WE JUST CANNOT PENCIL IN HIGHER COSTS AMERICA'S GIANT GRAIN EXPORTERS SUCH AS MINNEAPOLISBASED CARGILL INC AND NEW YORKBASED CONTINENTAL GRAIN CO MIGHT HAVE A HARD TIME PASSING ALONG HIGHER PRICES TO FOREIGN CUSTOMERS THESE COMPANIES PROTECT THEMSELVES FROM PRICE SWINGS IN PART BY TRADING FUTURES CONTRACTS AT THE CHICAGO BOARD OF TRADE BUT GRAIN TRADERS ARE WORRIED THAT SOME EUROPEAN CUSTOMERS MIGHT TAKE MORE OF THEIR BUSINESS TO BRAZIL WHICH IN APRIL HARVESTED A BUMPER SOYBEAN CROP SOME TRADE ANALYSTS PREDICT THE US PRICE RALLY WILL SPUR BRAZILIAN FARMERS TO PLANT MORE LAND IN NOVEMBER CREATING MORE COMPETITION FOR US FARMERS NEXT YEAR ONE CUSTOMER THAT CAN'T GO ELSEWHERE IS RUSSIA WHICH HAS TO SPEND A RECENTLY GRANTED 500 MILLION AID PACKAGE ON US FARM COMMODITIES THE PRICE RISE MEANS MOSCOW GETS LESS BANG FOR ITS BUCK SO IT MIGHT DELAY AS LONG AS POSSIBLE EARLY THIS YEAR THE GOVERNMENT WAS FORECASTING FLAT US AGRICULTURAL EXPORTS OF ABOUT 425 BILLION NOW SOME ECONOMISTS ARE TRIMMING THEIR OWN FORECASTS BY ROUGHLY 1 BILLION THE WET WEATHER HASN'T YET CRACKED THE MIDWEST STOICISM THAT HAS WITHSTOOD AT LEAST TWO DROUGHTS AND A RURAL DEPRESSION IN THE PAST DECADE WE'RE NOT COMPLAINING BECAUSE WE PICKED OUR OWN JOB SAYS BERNARD DEVORE A 68YEAROLD FARMER FROM PROMISE CITY IOWA AND WE'RE NOT UNEMPLOYED EVEN THOUGH WE CAN'T MAKE NO MONEY A HALFPERCENTAGE POINT RISE IN FOOD INFLATION WHICH ONE ECONOMIST FORESEES AS A RESULT OF MIDWEST FLOODING WOULD REPRESENT 31 BILLION OF FOOD AND BEVERAGE SPENDING THE FIGURE WAS MISSTATED AS 31 BILLION IN A PAGEONE ARTICLE FRIDAY 9307090106 930709 TOWN COMMITTEE HOPES TO FIND ATTRACTIONS BEYOND CANNING LINES BY JAMISON S PRIME STAFF REPORTER OF THE WALL STREET JOURNAL HOOPESTON ILL IS FIGHTING TO KEEP A SWEET REPUTATION FROM TURNING SOUR FOR A HALFCENTURY THE EASTCENTRAL ILLINOIS COMMUNITY OF 6400 HAS CALLED ITSELF THE SWEET CORN CAPITAL OF THE WORLD ITS HIGHSCHOOL ATHLETIC TEAMS ARE EVEN CALLED THE CORNJERKERS BUT THE TOWN'S LAST SWEETCORN PROCESSING LINES ARE SCHEDULED TO CLOSE THIS FALL RAISING THE QUESTION CAN HOOPESTON KEEP ITS NICKNAME WHEN THERE ISN'T A KERNEL OF TRUTH TO IT MARK SWINCHER EDITOR OF THE HOOPESTON CHRONICLE SAYS HE DOESN'T THINK ANY LOCALS WANT TO SURRENDER THE CLAIM SWEET CORN GOT ITS REAL MARKETING START IN HOOPESTON HE SAYS NOTING THAT A PLANT THERE WAS ONE OF THE FIRST TO COMMERCIALLY CAN SWEET CORN IN 1879 BUT ONE BY ONE HOOPESTON HAS BEEN SHUCKED OF ITS SWEETCORN FACILITIES GRAND METROPOLITAN PLC STOPPED SWEETCORN PRODUCTION AT ITS PILLSBURY PLANT IN TOWN IN 1986 AND NOW PROCESSES ONLY BEANS ONCE THIS FALL'S CORN HARVEST IS FINISHED STOKELY USA INC'S LOCAL PLANT WILL HANDLE ONLY PUMPKINS AND ASPARAGUS THE DECISION TO STOP CORN PRODUCTION WAS HARD SAYS A STOKELY SPOKESMAN AND HOOPESTON'S SWEETCORN HERITAGE MADE IT THAT MUCH MORE DIFFICULT MORE THAN CIVIC PRIDE IS AT STAKE EVERY LABOR DAY WEEKEND HOOPESTON ATTRACTS THOUSANDS TO ITS NATIONAL SWEETCORN FESTIVAL THE CLOSING OF THE LAST SWEETCORN LINES WON'T AFFECT THE 50YEAROLD FESTIVAL SAYS CHAIRMAN DON KAEB FROM ITS DEMOLITION DERBIES TO THE NATIONAL SWEETHEART PAGEANT WHERE RUNNERSUP FROM STATE MISS AMERICA CONTESTS COMPETE HOOPESTON'S FEST WILL CONTINUE UNTIL FURTHER NOTICE MR KAEB SAYS MR SWINCHER WHO IN A RECENT EDITORIAL COMPARED SWEET CORN'S INFLUENCE ON HOOPESTON TO ABRAHAM LINCOLN'S IMPACT ON THE PRESIDENCY ADMITS THAT IT'S PROBABLY A MATTER OF OPINION WHETHER HIS TOWN WILL STILL DESERVE THE TITLE COME FALL BUT AMONG HOOPESTON'S CITIZENS HE SAYS OPINION IS UNANIMOUS OUR ROOTS ARE IN SWEET CORN AND THAT'S NOT GOING TO CHANGE PILLSBURY CO CEASED SWEETCORN PRODUCTION IN HOOPESTON ILL IN 1986 GRAND METROPOLITAN PLC PURCHASED PILLSBURY IN 1989 AN ARTICLE FRIDAY INCORRECTLY SUGGESTED THAT GRAND METROPOLITAN HALTED CORN CANNING AT THE PLANT 9307090105 930709 TECHNOLOGY CLEANUP OF US LAND TO COST TAXPAYERS BILLIONS REPORT SAYS WASHINGTON YEARS OF ABUSE OF THE NATION'S PUBLIC LANDS HAVE CREATED A MASSIVE ENVIRONMENTAL POLLUTION MESS THAT WILL SADDLE TAXPAYERS WITH A MULTIBILLIONDOLLAR CLEANUP BILL IN THE YEARS AHEAD A NEW CONGRESSIONAL REPORT SAID THE REPORT ISSUED BY THE HOUSE NATURAL RESOURCES SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS FOCUSES CHIEFLY ON LANDS CONTROLLED BY THE INTERIOR DEPARTMENT THE CHRONICLE OF WOES INCLUDES CONTAMINATION FROM ACTIVE AND ABANDONED MINE SITES UNEXPLODED ORDNANCE UNCAPPED OIL AND GAS WELLS IRRIGATION DRAINAGE RADIOACTIVE MATERIAL AND HAZARDOUS WASTE AS A RESULT OF OUTDATED POLICIES INADEQUATE OVERSIGHT AND DECADES OF NEGLECT THE AMERICAN TAXPAYER WILL BE SADDLED WITH TENS OF BILLIONS OF DOLLARS IN ENVIRONMENTAL CLEANUP COSTS FOR DAMAGE SPREAD ACROSS FEDERALLY OWNED LANDS IN MANY IF NOT MOST STATES SAID SUBCOMMITTEE CHAIRMAN GEORGE MILLER D CALIF IN AN INTRODUCTION TO THE REPORT THE REPORT DOESN'T COVER DEFENSE AND ENERGY DEPARTMENT SITES BUT SAID CLEANUP COSTS WILL RIVAL THE EXPENSE OF THE SAVINGS AND LOAN BAILOUT IF THOSE AGENCIES ARE INCLUDED THE S&L CLEANUP COST TYPICALLY IS ESTIMATED AT AROUND 200 BILLION AS FOR NOW HOWEVER REP MILLER SAID NO SINGLE DOLLAR FIGURE CAN BE GIVEN FOR THE TOTAL CLEANUP BILL THE REPORT RECOMMENDED THAT ENVIRONMENTAL CLEANUP COSTS BE INCORPORATED INTO THE ANNUAL BUDGET PROCESS SAYING THE ENVIRONMENTAL REHABILITATION EFFORT MAY NEVER BE ADEQUATELY FUNDED UNLESS SUCH ACTION IS TAKEN REP MILLER ALSO URGED PURSUING PRIVATE ENTITIES RESPONSIBLE FOR CONTAMINATING PUBLIC LANDS 9307090104 930709 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY TAKING CHARGE OF YOUR RETIREMENT PLAN AND BUILDING A SOLID NEST EGG BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL CHANCES ARE YOU WORK FOR A COMPANY THAT HAS INSTALLED A SELFDIRECTED 401K PLAN AS THE PRIMARY SOURCE OF RETIREMENT MONEY FOR EMPLOYEES IF SO THE RESPONSIBILITY FOR YOUR RETIREMENT NEST EGG IS SQUARELY ON YOUR SHOULDERS IT'S UP TO YOU TO SIGN UP FOR THE PLAN CONTRIBUTE TO IT AND MONITOR THE QUALITY OF THE INVESTMENTS IN SHORT YOU NEED TO BE YOUR OWN PENSION MANAGER THE FIRST STEP IS TO TAKE RESPONSIBILITY FOR YOUR OWN INVESTMENT EDUCATION NOT ONLY DO YOU HAVE TO MAKE SMART CHOICES ABOUT HOW TO ALLOCATE THE MONEY IN YOUR PLAN YOU WILL HAVE TO KNOW HOW TO INVEST IT WHEN YOU LEAVE YOUR JOB FOR A NEW ONE OR AT RETIREMENT START BY LOOKING AT INFORMATION BOOKLETS SUPPLIED BY THE PLAN AND ATTEND SEMINARS OFFERED PERIODICALLY BUT BEWARE MANY EMPLOYERS LET BROKERS INSURANCE AGENTS AND FINANCIAL PLANNERS GIVE FREE INVESTING RETIREMENT PLANNING AND BENEFIT SEMINARS TO EMPLOYEES WHILE THESE PROFESSIONALS MAY PROVIDE SOME BASIC EDUCATION THAT'S NOT THEIR SOLE MOTIVE BROKERS AND OTHER SALESPEOPLE USE SUCH SEMINARS TO SELL THEMSELVES TO EMPLOYEES AND GAIN THEIR TRUST MAKING IT EASIER TO SELL THEM INSURANCE MUTUAL FUNDS OR OTHER INVESTMENTS THEY ALSO WANT TO GET THEIR HANDS ON THE MONEY EMPLOYEES MAY TAKE OUT OF THEIR COMPANY PLANS WHEN THEY CHANGE JOBS GET LAID OFF OR RETIRE BEING YOUR OWN PENSION MANAGER MEANS YOU ALSO GET THE CRUCIAL JOB OF TRANSFERRING YOUR RETIREMENT MONEY TO AN INDIVIDUAL RETIREMENT ACCOUNT AND INVESTING IT WHEN YOU CHANGE JOBS THIS MAY BE THE MOST TREACHEROUS FINANCIAL DECISION YOU MAKE IN YOUR LIFE YOUR NEST EGG MAY BE WORTH HUNDREDS OF THOUSANDS OF DOLLARS REPRESENTING MOST OF YOUR RETIREMENT SECURITY APART FROM SIDESTEPPING INCOMPETENT OR UNSCRUPULOUS BROKERS INSURANCE AGENTS OR MONEY MANAGERS YOU NEED TO AVOID COSTLY TAX MISTAKES IF YOU DON'T PUT THE MONEY INTO AN IRA OR A NEW EMPLOYER'S PLAN IT WILL BECOME TAXABLE INCOME LIKE ANY OTHER PENSION MANAGER IT'S ALSO YOUR JOB TO MONITOR THE QUALITY OF INVESTMENTS IN YOUR RETIREMENT PLAN BECAUSE YOU'RE ACTING AS YOUR OWN PLAN FIDUCIARY MAKE SURE THE INVESTMENT OPTIONS YOU CHOOSE HAVE DECENT TRACK RECORDS AND REASONABLE FEES AFTER ALL YOU'RE LIMITED TO THESE INVESTMENTS AND YOU'RE PAYING THE FEES HIGH FEES CAN SERIOUSLY EAT INTO YOUR RETIREMENT RETURNS IN GENERAL LARGE EMPLOYERS TEND TO OFFER INVESTMENTS OF REASONABLE QUALITY BUT NOT ALL DO AND MANY 401K PLANS AS WELL AS PROFITSHARING PLANS AT SMALL COMPANIES AND MANY 403B PLANS USED BY TEACHERS AND HOSPITAL EMPLOYEES HAVE INVESTMENT CHOICES THAT COME WITH SALES FEES HIGH ANNUAL FEES AND LOW RETURNS MAKE SURE YOU DON'T OWN TOO MUCH OF YOUR EMPLOYER'S STOCK NOT ONLY DO SOME EMPLOYERS USE COMPANY STOCK TO MATCH EMPLOYEE 401K CONTRIBUTIONS BUT THEY MAY ALSO OFFER IT AS ONE OF THE INVESTMENT OPTIONS IN THE PLAN BUT EMPLOYEES CAN'T AFFORD TO HAVE SO MUCH OF THEIR FORTUNE TIED TO THEIR EMPLOYER'S FORTUNES SO DIVERSIFYING IS WISE IF YOU DISCOVER THAT YOUR PLAN ISN'T COMPETITIVE WITH THOSE OFFERED BY COMPANIES SIMILAR TO THE ONE YOU WORK FOR COMPLAIN EMPLOYERS DON'T WANT TO GET SUED IN THE FUTURE FOR FAILING TO MEET THEIR FIDUCIARY RESPONSIBILITIES SO THEY ARE INCREASINGLY OPEN TO THE IDEA OF IMPROVING THE RETIREMENT PLANS IF EMPLOYEES MAKE A FUSS SEE RELATED STORIES HOW TO GET THE MOST OUT OF YOUR BENEFIT PLAN AND BENEFIT PLANS THROUGH THE AGES WSJ JULY 9 1993 9307090103 930709 RAILROADS TO POST EARNINGS GAINS FOR 2ND QUARTER YEARAGO PERIOD INCLUDED 2DAY WORK STOPPAGE CARLOADINGS RISE 33 BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR RAILROADS WILL REPORT MODERATE SECONDQUARTER EARNINGS GAINS AIDED BY CONTINUED COSTCUTTING AND IMPROVED SHIPMENTS OF SOME COMMODITIES ANALYSTS EXPECT THE RAIL GROUP TO REPORT SECONDQUARTER EARNINGS GAINS EXCLUDING SPECIAL ITEMS IN THE AREA OF 10 TO 15 THE RAILROADS CONTINUE TO GET GOOD EARNINGS FROM A CYCLICAL INDUSTRY IN A SLOW GROWTH ECONOMY SAYS ANDRAS PETERY AN ANALYST AT MORGAN STANLEY & CO THE TRENDS THAT HELPED THEM IN THE PASTEFFICIENCY GAINS COST REDUCTIONS AND A SLIGHT INCREASE IN RAIL TRAFFICHELPED THEM AGAIN IN THE SECOND QUARTER BUT SOME ANALYSTS AREN'T IMPRESSED WITH THE PROJECTED EARNINGS GAINS GRAEME ANNE LIDGERWOOD AN ANALYST AT FIRST BOSTON CORP SAYS THE GAINS ARE ARTIFICIALLY INFLATED BECAUSE THE YEARAGO SECOND QUARTER INCLUDED A TWODAY NATIONWIDE RAILROAD WORK STOPPAGE MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORP SAYS THE GAINS ARE LESS ROBUST THAN YEARTOYEAR EARNINGS GROWTH OF MORE THAN 20 IN THE 1992 SECOND QUARTER THAT'S WHEN THE MAJOR RAILROADS REALIZED BIG SAVINGS FROM AGREEMENTS TO CUT THE SIZE OF FREIGHT TRAIN CREWS ALTHOUGH SOME RAILROADS CONTINUE TO IMPLEMENT CREW REDUCTIONAGREEMENTS THE MAJOR LABOR COST SAVINGS WERE IN PLACE IN EARLY 1992 FOR MOST RAILROADS AND AS A RESULT IT IS MUCH MORE DIFFICULT TO SHOW SIGNIFICANTLY BETTER COST COMPARISONS SAYS MR LLOYD RAIL TRAFFIC MEASURED IN CARLOADINGS ON THE MAJOR RAILROADS ROSE 33 IN THE 12WEEK PERIOD ENDED JUNE 26 ACCORDING TO THE ASSOCIATION OF AMERICAN RAILROADS COAL TRAFFIC WAS FLAT REFLECTING WEAKENED EXPORT DEMAND LOWERED FUEL INVENTORIES AT DOMESTIC UTILITIES AND A UNITED MINE WORKERS STRIKE WHICH DISRUPTED SOME SHIPMENTS BUT SHIPMENTS OF MOTOR VEHICLES A PARTICULARLY LUCRATIVE FREIGHT CATEGORY ROSE 112 CARLOADINGS OF METALS INCREASED 153 GRAIN WAS UP 137 AND CHEMICALS ROSE 24 SHIPMENTS OF TRUCK TRAILERS AND CONTAINERS ON RAIL FLATCARS INCREASED 81 DURING THE 12WEEK PERIOD AS THE MAJOR RAILROADS CONTINUED TO GAIN FREIGHT BACK FROM THE HIGHWAYS ANALYSTS EXPECT BURLINGTON NORTHERN INC THE NATION'S LONGEST RAILROAD TO REPORT THE MOST SIZABLE YEARTOYEAR EARNINGS IMPROVEMENT WEAK GRAIN TRAFFIC CONTRIBUTED TO DISAPPOINTING EARNINGS FOR BURLINGTON NORTHERN IN THE YEARAGO SECOND QUARTER WHEN THE CARRIER REPORTED NET INCOME OF 40 CENTS A SHARE BUT IMPROVING TRAFFIC AND THE COMPANY'S CONTINUED EFFICIENCY PROGRAM ARE LEADING ANALYSTS TO ESTIMATE THAT BURLINGTON NORTHERN WILL POST NET BETWEEN 70 CENTS AND 80 CENTS A SHARE IN THE LATEST SECOND QUARTER SANTA FE PACIFIC CORP ANTICIPATES THAT SECONDQUARTER EARNINGS WILL APPROXIMATE 21 CENTS A SHARE COMPARED WITH YEARAGO NET OF 14 CENTS A SHARE RESTATED FOR AN ACCOUNTING CHANGE SAYS DENIS SPRINGER THE COMPANY'S CHIEF FINANCIAL OFFICER MR SPRINGER CITED LOWER INTEREST EXPENSE A SLIGHT IMPROVEMENT AT THE GOLD PRODUCTION UNIT AND MAJOR IMPROVEMENT AT THE RAIL UNIT RAIL TRAFFIC INCREASED MORE THAN 10 IN THE SECOND QUARTER AND THE COMPANY CONTINUED TO CUT RAIL COSTS A UNION PACIFIC CORP OFFICIAL SAYS THE COMPANY IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT SECONDQUARTER NET WOULD BE ABOUT 95 CENTS A SHARE A YEAR EARLIER UNION PACIFIC REPORTED NET OF 101 A SHARE INCLUDING 20 CENTS FROM A ONETIME CREDIT FROM A TAX SETTLEMENT AT ITS RESOURCES UNIT THE OFFICIAL SAYS THE RAILROAD HAD TRAFFIC GAINS ACROSS ALL COMMODITY GROUPS EXCEPT FOR A DECLINE IN FOREST PRODUCTS THE COMPANY'S RESOURCE UNIT BENEFITED FROM SHARPLY HIGHER NATURAL GAS PRICES HE SAYS EARNINGS AT UNION PACIFIC'S TRUCKING UNIT WERE FLAT AMONG EASTERN RAILROADS CSX CORP EXPECTS TO REPORT SECONDQUARTER EARNINGS IN LINE WITH ANALYSTS' ESTIMATES WHICH RANGE FROM 135 TO 145 A SHARE A GAIN FROM A LARGE REAL ESTATE TRANSACTION REALIZED IN THE LATEST SECOND QUARTER WILL PUSH RESULTS TOWARD THE TOP END OF THE RANGE SAYS A CSX SPOKESPERSON CSX HAD EARNINGS OF 125 A SHARE IN THE 1992 SECOND QUARTER EXCLUDING A NONRECURRING NET CHARGE OF 438 A SHARE STRONG MERCHANDISE TRAFFIC AT CSX'S RAIL UNIT HELPED OFFSET A 7 DECLINE IN CARLOADINGS OF COAL THE COAL MINERS' WALKOUT DISRUPTED NINE MINES SERVED BY CSX SAYS THE SPOKESPERSON OPERATING INCOME IMPROVED AT CSX'S INTERMODAL AND OCEAN SHIPPING UNITS BUT FELL AT THE BARGE UNIT WHICH WAS HURT BY WEAK COAL TRAFFIC AND FLOODING ON THE MISSISSIPPI RIVER BURTON STRAUSS JR AN ANALYST AT LEHMAN BROTHERS ESTIMATED THAT NORFOLK SOUTHERN CORP WOULD REPORT NET OF ABOUT 105 A SHARE COMPARED WITH YEARAGO NET OF 103 A SHARE HE CITED ONGOING PROBLEMS AT THE COMPANY'S TRUCKING UNIT NORTH AMERICAN VAN LINES A NORFOLK SOUTHERN SPOKESMAN DECLINED COMMENT ON THE ESTIMATE HE SAID RAIL CARLOADINGS IN THE FIRST 12 WEEKS OF THE QUARTER ROSE 51 DESPITE A SLIGHT DROP IN COAL TRAFFIC MR STRAUSS ESTIMATED THAT CONRAIL INC HAD SECONDQUARTER EARNINGS OF 93 CENTS A SHARE COMPARED WITH FULLY DILUTED NET OF 82 CENTS A SHARE A YEAR AGO ADJUSTED FOR A 2FOR1 STOCK SPLIT PAID IN SEPTEMBER 1992 A CONRAIL SPOKESMAN WOULDN'T COMMENT ON THE ESTIMATE BUT HE SAID RAIL TRAFFIC HAS BEEN STRONG IN STEEL AUTOMOTIVE AND INTERMODALFREIGHT MOVED BY A COMBINATION OF TRUCK AND RAIL 9307090102 930709 LATIN AMERICAN REAL ESTATE LURES INVESTORS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WONDERING IF THE LATIN AMERICAN INVESTMENT BOOM IS FOR REAL SOME BIG INVESTORS CERTAINLY THINK SO THEY'RE PUTTING BIG MONEY INTO THE REGION'S REAL ESTATE FINANCIER GEORGE SOROS WHO IS PROWLING FOR REAL ESTATE BARGAINS AROUND THE WORLD THIS WEEK DOUBLED A PERSONAL STAKE IN AN ARGENTINE PROPERTY COMPANY JOINING MR SOROS IN THE ARGENTINE VENTURE ARE TWO OTHER WELLKNOWN WALL STREET FIGURES JACK NASH AND BERNARD SELZ AND OTHER INVESTORS ARE HEADED IN THE SAME DIRECTION BIG INVESTMENT COMPANIES SUCH AS SCUDDER STEVENS & CLARK AND THE TEMPLETON FUNDS ARE LOOKING FOR REAL ESTATE INVESTMENTS IN LATIN MARKETS MR SOROS INCREASED HIS TOTAL STOCKHOLDINGS IN INVERSIONES Y REPRESENTACIONES SA OR IRSA TO 28 MILLION SHARES HIS STAKE IS NOW 388 OF THE SHARES OUTSTANDING HIS TOTAL INVESTMENT HAS A MARKET VALUE OF ABOUT 47 MILLION MR SOROS WHO OVERSEES 10 BILLION IN GLOBAL INVESTMENTS AT SOROS FUND MANAGEMENT INCREASED HIS STAKE IN CONJUNCTION WITH A GLOBAL STOCK SALE BY THE ARGENTINE COMPANY WEDNESDAY BARING SECURITIES MANAGED THE OFFERING EARLIER THIS YEAR MR SOROS ESTABLISHED QUANTUM REALTY FUND A 525 MILLION VEHICLE TO INVEST IN WORLD REAL ESTATE MARKETS BUT THIS TIME HE WAS INVESTING HIS OWN MONEY STILL HOLDING MODEST STAKES IN IRSA WITH 378420 SHARES EACH ARE MR NASH FOUNDING PARTNER OF OPPENHEIMER & CO AND NOW A PARTNER AT THE INVESTMENT FIRM ODYSSEY PARTNERS AND MR SELZ COFOUNDER AND CURRENT EXECUTIVE COMMITTEE CHAIRMAN OF THE INVESTMENT BANKING FIRM FURMAN SELZ OTHER INVESTORS IN IRSA INCLUDE BEA ASSOCIATES A NEW YORK INVESTMENT HOUSE OF ALL THE OPPORTUNITIES IN THE WORLD WHY ARE THESE SAGE INVESTORS PUTTING THEIR MONEY IN ARGENTINA YEARS OF HYPERINFLATION WILD CURRENCY GYRATIONS CAPITAL FLIGHT AND CORRUPTION HAVE SHAKEN UP THE BANKING SYSTEMS IN MANY LATIN AMERICAN COUNTRIES CREDIT FOR EVEN THE MOST BASIC BUSINESS DEALS SUCH AS REAL ESTATE MORTGAGES FLOWS AT A TRICKLE SOUND BAD IT IS FOR BANK STOCKS BUT NOT FOR REAL ESTATE THE LACK OF LONGTERM FINANCING IN THE REAL ESTATE MARKET TENDS TO CREATE GOOD VALUE SAYS LINCOLN RATHNAM MANAGING DIRECTOR AT SCUDDER STEVENS & CLARK AN INVESTMENT FIRM WITHOUT READY ACCESS TO CREDIT REAL ESTATE PROJECTS TEND TO BE FINANCED WITH CASH THAT MEANS YOU CAN'T HAVE SPECULATIVE BUILDING SO MARKETS TEND TO BE UNDERBUILT MR RATHNAM EXPLAINS AND BECAUSE THEY ARE UNDERBUILT RENTS TEND TO BE HIGH AND PRICES LOW IT IS FUNDAMENTALLY A GOOD INVESTMENT SITUATION ADDS WILLIAM BUGG EXECUTIVE MANAGING DIRECTOR INTERNATIONAL AT CUSHMAN & WAKEFIELD INC BECAUSE OF THE INABILITY TO OBTAIN FINANCING THERE IS VERY LITTLE CLASS A OFFICE SPACE IN SOME OF THESE COUNTRIES IN VIEW OF THE HISTORY OF LATIN AMERICA BUYING SOMETHING AS PERMANENT AS REAL ESTATE HAS BEEN PSYCHOLOGICALLY THE LEAST ATTRACTIVE OF ALL INVESTMENTS SAYS DARIO PEDRAJO PORTFOLIO MANAGER AT VESTRUST ASSET MANAGEMENT IN MIAMI BUT ALL OVER LATIN AMERICA REAL ESTATE HAS PROBABLY BEEN THE BESTPERFORMING ASSET OF ALL IN RECENT YEARS ALSO CENTRAL BANKS IN SOME NATIONS SUCH AS ARGENTINA AND MEXICO ARE RUNNING RIGOROUS HIGHINTERESTRATE ANTIINFLATION POLICIES NOT ONLY DOES THIS DISCOURAGE SPECULATIVE FINANCING BUT IT TENDS TO DEPRESS THE VALUE OF REAL ASSETS SUCH AS BUILDINGS THAT CREATES BUYING OPPORTUNITIES FOR INVESTORS WITH READY CASH IN MEXICO'S STOCK MARKET BROKERS HAVE BEEN RECOMMENDING SHARES OF COMPANIES SUCH AS GRUPO POSADAS A HOTEL COMPANY DESC SOCIEDAD DE FOMENTO INDUSTRIAL A CONGLOMERATE WITH REAL ESTATE INTERESTS AND FONDO OPCION A THINLY TRADED COMPANY THAT OPERATES SIMILARLY TO A US REAL ESTATE INVESTMENT TRUST THE CLASS L SHARES OF POSADAS ARE UP ABOUT 22 THIS YEAR CLASS C SHARES OF DESC ARE UP ABOUT 1 FONDO OPCION IS ABOUT FLAT FOR THE YEAR WHILE THE STOCK MARKET AS A WHOLE BOLSA MEXICANA DE VALORES IS DOWN ABOUT 6 THIS YEAR EMERGING MARKETS ARE HOT SAYS JEFFREY EVERETT MANAGER OF THE TEMPLETON REAL ESTATE SECURITIES FUND WHEN COUNTRIES LIKE ARGENTINA AND MEXICO BEGIN TO EXTEND MORTGAGE CREDIT TO HOME AND APARTMENT BUYERS IT WILL ALSO BE BENEFICIAL TO PROPERTY HOLDERS HOWEVER MR EVERETT CAUTIONS THAT EMERGING MARKETS CAN BE OVERBUILT QUICKLY THE RISK IS THAT CAPITAL GETS IN THERE AND THEY START BUILDING LIKE CRAZY WE SAW THIS IN AUSTRALIA SOME ANALYSTS THINK SANTIAGO CHILE IS DEVELOPING A REAL ESTATE GLUT FOR EXAMPLE IRSA WAS ACQUIRED BY MR SOROS AND OTHER INVESTORS FOR ABOUT 1 A SHARE THROUGH A 16 MILLION CAPITAL INFUSION IN 1991 THIS YEAR THE COMPANY RAISED AN ADDITIONAL 16 MILLION IN A STOCK OFFERING IRSA DOESN'T PAY A DIVIDEND SO INVESTORS ARE BANKING ON A RISE IN BOOK VALUE THE COMPANY'S TOTAL STOCKMARKET VALUE STANDS AT ABOUT 121 MILLION AT 1683 A SHARE THE COMPANY NOW TRADES AT 113 TIMES BOOK VALUE IRSA SAYS YIELDS ON RENTED PROPERTIES RANGE FROM 167 TO 255 OF BOOK VALUE AS OF MARCH 1993 IT ALSO BUYS AND SELLS PROPERTIES NET PROFIT ON SALES OF PROPERTIES WAS JUST UNDER 2 MILLION FOR THE NINE MONTHS THROUGH MARCH THIS WEEK BARING BROUGHT TO MARKET 15 MILLION NEW GLOBAL DEPOSITARY SHARES OF IRSA FOR 1683 EACH MEANWHILE IN A SEPARATE TRANSACTION MR SOROS DOUBLED THE AMOUNT OF SHARES HE OWNS ALTHOUGH HIS PERCENTAGE HOLDING FELL SLIGHTLY TO 38 COMPARED WITH 43 BEFORE THE OFFERING EACH GLOBAL DEPOSITARY SHARE THIS IS 144A STOCK THAT CAN ONLY BE PURCHASED BY LARGE INVESTORS IN THE USREPRESENTS 10 SHARES OF IRSA IRSA'S ORDINARY SHARES CAN BE BOUGHT BY ANY INVESTOR ON THE BUENOS AIRES STOCK EXCHANGE THE IRSA OFFERING WAS A RARE INSTANCE OF A PUBLIC INVITATION TO INVEST ALONGSIDE MR SOROS WHO SOMETIMES CONCEALS HIS ACTIVITIES IN OFFSHORE FUND VEHICLES OR PARTNERSHIPS RESERVED FOR RICH PEOPLE WHY THE SUDDEN WALK IN THE SUNLIGHT PART OF IRSA'S GAME PLAN INVOLVES PURCHASES OF REAL ESTATE FROM THE ARGENTINE GOVERNMENT ARGENTINA'S PRESIDENT CARLOS MENEM HAS BEEN CAREFUL TO GIVE INVESTORS A WAY TO PARTICIPATE IN BIG REWARDING PRIVATIZATIONS SUCH AS THE SALE OF OIL COMPANY YPF MR SOROS AND ASSOCIATES ANALYSTS SAY ARE USING A PUBLICLY TRADED VEHICLE FOR THE ARGENTINE REAL ESTATE VENTURE TO KEEP RELATIONS WITH THE GOVERNMENT SMOOTH BY GIVING LOCAL INVESTORS A WAY TO PARTICIPATE IN SOME REAL ESTATE PRIVATIZATIONS ARGENTINA THEY SAY WOULDN'T TOLERATE EXCLUSIVE SALES OF REAL ESTATE GEMS TO A HANDFUL OF WEALTHY INVESTORS 9307090101 930709 BUSINESS BRIEF ALASKA AIR GROUP INC UNIONIZED FLIGHT ATTENDANTS SUE AFTER TALKS BREAK OFF UNIONIZED FLIGHT ATTENDANTS OF ALASKA AIRLINES A UNIT OF ALASKA AIR GROUP INC FILED A LAWSUIT AGAINST THEIR EMPLOYER IN US DISTRICT COURT IN SEATTLE ALLEGING UNFAIR LABOR PRACTICES AND BAD FAITH IN STALEMATED CONTRACT NEGOTIATIONS THE TALKS BROKE OFF JUNE 19 AFTER THREE YEARS AND THE COMPANY IMPOSED NEW WORK RULES AND CONDITIONS THAT INCLUDED A 3 PAY RAISE FOR THE SUBSEQUENT 12 MONTHS THE MEMBERS OF THE ASSOCIATION OF FLIGHT ATTENDANTS AN AFLCIO AFFILIATE SAY THE COMPANY FAILED TO RESPOND TO COMPROMISE OFFERS A COMPANY SPOKESMAN DECLINED TO COMMENT 9307090100 930709 WORLD MARKETS FRANKFURT STOCKS SOAR LIFTING EUROPE'S BOURSES BUT PRICES ARE MIXED IN TOKYO SLIP IN LONDON A WALL STREET JOURNAL NEWS ROUNDUP FRANKFURT STOCK PRICES SOARED 37 TO THEIR HIGHEST LEVEL IN MORE THAN A YEAR ON PERCEPTIONS THAT GERMAN SHORTTERM INTEREST RATES WILL CONTINUE TO FALL AND THAT THE COUNTRY'S RECESSION MAY HAVE REACHED BOTTOM THE GERMAN EXCHANGE'S BULLISH SHOWING SPILLED OVER INTO MANY OTHER EUROPEAN BOURSES WHERE TRADING WAS LIVELY DESPITE THE SUMMER VACATION PERIOD TOKYO STOCKS FINISHED MIXED IN QUIET DEALINGS THURSDAY AS INVESTORS CONTINUED TO BE PREOCCUPIED BY THE SUMMIT OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS LONDON EQUITIES SLIPPED WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10576 UP 068 REFLECTING INCREASES IN AMERICAN AND EUROPEAN MARKETS AND A DROP IN ASIA/PACIFIC MARKETS AUTO MANUFACTURERS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12417 UP 275 OR 23 WITH BAYERISCHE MOTOREN WERKE OF GERMANY POSTING A 71 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 14101 DOWN 379 OR 26 WITH BATTLE MOUNTAIN GOLD OF THE US SLIDING 75 IN LOCAL CURRENCY IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 6394 POINTS TO 178370 FOR THE BIGGEST ONEDAY PERCENTAGE GAIN SINCE LAST AUGUST CONTINUING THE PREVIOUS DAY'S BULLISH PERFORMANCE THE DAX OPENED SHARPLY HIGHER AND MADE HUGE GAINS LED BY THE AUTO AND INDUSTRIAL SECTORS FOLLOWING RECOMMENDATIONS BY SEVERAL BROKERAGE HOUSES FOR THEIR INTERNATIONAL CLIENTS TO INCREASE THEIR WEIGHTING IN GERMAN SHARES FRESH FUNDS POURED INTO THE FRANKFURT MARKET AS FOREIGN INSTITUTIONAL INVESTORS DECIDED ON A STRATEGIC HEAVY SHIFT INTO GERMAN EQUITIES FRANKFURT PARTICIPANTS WHO HAD SHORT POSITIONS RACED TO COVER THEM ALSO HELPING TO PUSH PRICES UP IN A SHORT SALE AN INVESTOR SELLS BORROWED STOCK HOPING TO PROFIT BY BUYING AN EQUAL NUMBER OF SHARES LATER AT A LOWER PRICE TO REPLACE THE BORROWED STOCK INVESTORS IN FRANKFURT WERE BETTING THAT A GERMAN ECONOMIC RECOVERY IS COMING THAT SHORTTERM INTEREST RATES WILL CONTINUE TO FALL THAT THE MARK CURRENCY WILL CONTINUE TO WEAKEN AGAINST THE US DOLLAR AND THAT PRODUCTIVITY GAINS WILL SURFACE FROM THE GERMAN INDUSTRIAL RESTRUCTURING UNDER WAY PARIS STOCKS FUELED BY FRANKFURT'S STRONG GAINS MOVED SHARPLY AND BROADLY HIGHER IN THE AFTERNOON SESSION TO FINISH WITH A 19 JUMP INVESTORS IN FRANCE HAD BEEN ENCOURAGED IN THE PAST TWO WEEKS BY GERMAN ECONOMIC INDICATORS SHOWING THAT THE RECESSION THERE MAY HAVE BOTTOMED OUT SOONER THAN EXPECTED THIS SPARKED STRONG BUY SIGNALS FOR FRENCH COMPANIES WITH BUSINESS IN GERMANY INCLUDING AUTO TIRE METAL AND CONSTRUCTION MATERIALS MAKERS AND THE PARIS BULL RUN GAINED STEAM FROM THE US DOLLAR'S CONTINUED GAINS THE AMERICAN CURRENCY HIT 58 FRENCH FRANCS FOR THE FIRST TIME IN ALMOST TWO YEARS IN AMSTERDAM SHARES JUMPED 1 AFTER RECESSIONSENSITIVE ISSUES LED A RALLY SPURRED BY PROSPECTS OF A BREAKTHROUGH IN THE STALLED WORLD TRADE TALKS AND ITS POTENTIAL ECONOMIC BENEFITS THE BULLISHNESS ALSO WAS SUPPORTED BY A FIRM DOLLAR EXPECTATIONS THAT SHORTTERM EUROPEAN INTEREST RATES WILL CONTINUE EASING AND STRONGER MARKETS ELSEWHERE IN EUROPE MILAN STOCKS RACED UP 19 IN ACTIVE TRADING AS THE MARKET BROKE OUT OF A STRETCH OF PROFITTAKING AND POSITIONADJUSTING IN A BELATED REACTION TO AN ITALIAN INTERESTRATE CUT LAST MONDAY AND A SWEEPING LABOR ACCORD REACHED LAST WEEKEND ALL SECTORS GAINED EXCEPT BANKS WHICH ARE STILL HURT FROM THE FALLOUT OF CORPORATE DEBT PROBLEMS IN MADRID SHARES CLOSED SHARPLY HIGHER IN HEAVY VOLUME BOOSTED BY GAINS ON THE PARIS AND FRANKFURT BOURSES WHICH ALSO LIFTED STOCKHOLM EQUITIES ALONG WITH THE FIRM DOLLAR ZURICH STOCKS ADVANCED 1 ON CONTINUED BUYING OF A FEW BLUE CHIPS THAT LED THE OVERALL MARKET HIGHER BUYING INITIALLY CENTERED ON BANKS SUPPORTED BY EASIER SWISS MONEY MARKET RATES AND SPILLED OVER INTO CHEMICAL AND INDUSTRIAL ISSUES BRUSSELS SHARES ROSE ACROSS THE BOARD BUOYED BY A FIRMER DOLLAR AND POSITIONCOVERING AHEAD OF SUMMER VACATIONS BUT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 24 POINTS TO 28459 DOWN FROM THE SESSION'S PEAK OF 28557 WHEN PARTICIPANTS WERE OPTIMISTIC ABOUT THE PREVIOUS DAY'S BREAKTHROUGH FOR WORLD TRADE ISSUES BY G7 LEADERS IN TOKYO THE FT 30STOCK INDEX FELL 63 POINTS TO 22278 VOLUME WAS 5776 MILLION SHARES COMPARED WITH 5862 MILLION SHARES A DAY EARLIER PRICES TURNED DOWN ON PERCEPTIONS THAT A NEW ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WOULDN'T HAVE A GREAT ECONOMIC EFFECT ON ISSUES THAT CONCERN BRITAIN LATE IN THE SESSION THE 100STOCK INDEX REBOUNDED A BIT FOLLOWING WALL STREET'S STRENGTH IN EARLY TRADING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAVE UP 10911 POINTS WEDNESDAY FELL 32 TO 1968867 AFTER MOVING WITHIN A RANGE OF JUST 10891 POINTS ON FRIDAY THE NIKKEI ROSE 20242 POINTS TO CLOSE THE MORNING SESSION AT 1989109 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES UP FROM 2352 MILLION SHARES A DAY EARLIER FALLING ISSUES NARROWLY OUTNUMBERED RISING ISSUES 457451 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DECLINED 852 POINTS WEDNESDAY ROSE 655 TO 159093 TOKYO PRICES SPENT MOST OF THE SESSION LITTLE CHANGED WITH VOLATILITY OCCURRING AT E OPENING AND TOWARD THE CLOSE PUBLIC AND PRIVATE PENSION FUNDS RENEWED THEIR BUYING IN EARLY TRADING AT THE G7 SUMMIT OFFICIALS CONTINUED TO CALL ON JAPAN TO STIMULATE DOMESTIC DEMAND AND LEAD A RECOVERY OF THE GLOBAL ECONOMY BUT JAPAN DIDN'T INDICATE THAT IT WOULD TAKE ANY CONCRETE NEW STEPS SWAYED BY THE POLITICAL AND ECONOMIC UNCERTAINTIES INVESTORS CONTINUED TO LOOK FOR SIGNS OF A JAPANESE INTERESTRATE CUT IN SYDNEY SHARE PRICES CLOSED MOSTLY FIRMER TAKING THE ALLORDINARIES INDEX UP 87 POINTS TO 17825 ITS HIGHEST CLOSE SINCE THE GLOBAL STOCK MARKET CRASH IN OCTOBER 1987 JUST PRIOR TO THAT DEBACLE THE INDEX WAS AT 20647 AND IT BEGAN THIS YEAR AT 15499 INTEREST IN GOLD SHARES PUSHED THE INDEX UP FOR MOST OF THURSDAY'S SESSION IN TAIPEI STOCKS EASED AS SELLING PRESSURE EMERGED LATE IN THE SESSION TO ERODE EARLY GAINS MANILA EQUITIES SHOT UP IN HEAVY VOLUME PROPELLED BY AN EXTREMELY LIQUID MARKET THAT SAW FOLLOWTHROUGH BUYING AFTER THE MAIN INDEX ROSE THROUGH A PERCEIVED RESISTANCE LEVEL A DAY EARLIER SEOUL PRICES FOLLOWING RECENT SLUGGISHNESS CLIMBED HANDILY ON A RUSH OF BUYING OF BIG MANUFACTURERS 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 9307090099 930709 ECONOMY MIXED RESULTS POSTED FOR JUNE BY BIG RETAILERS PREFERENCE FOR HOME GOODS OVER APPAREL INDICATES CONSUMER CAUTIOUSNESS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL THE BIG US RETAILERS REPORTED MIXED SALES RESULTS FOR JUNE AS CONSUMERS CONCENTRATED THEIR PURCHASING ON HOME GOODS AND STEERED CLEAR OF APPAREL UNDERSCORING THEIR CAUTIOUSNESS ABOUT SPENDING CHAINS THAT RELY HEAVILY ON SALES OF HOMERELATED GOODS SUCH AS SEARS ROEBUCK & CO JC PENNEY & CO FEDERATED DEPARTMENT STORES AND MAY DEPARTMENT STORES POSTED RESPECTABLE GAINS AT STORES OPEN AT LEAST A YEAR BUT THE MONTH WAS A DISAPPOINTING ONE FOR APPAREL SPECIALISTS SUCH AS GAP INC LIMITED INC AND MERRYGOROUND ENTERPRISES INC IN GENERAL JUNE SALES FELL IN LINE WITH ESTIMATES BY WALL STREET ANALYSTS THAT THE MAJOR RETAILERS WOULD POST JUNE GAINS IN SAMESTORE SALES AVERAGING ABOUT 56 ABOVE A YEAR AGO THE JUNE RESULTS PROVIDED MORE EVIDENCE THAT CONSUMERS ARE TAKING ADVANTAGE OF ROCKBOTTOM INTEREST RATES IN PURCHASING HOMES AND FIXING THEM UP OBSERVED JEFFREY EDELMAN AT CJ LAWRENCE INC STRONG SALES OF APPLIANCES AND OTHER DURABLES SHOWS THAT CONSUMERS ARE BUYING WHAT THEY NEED BEFORE WHAT THEY WANT HE SAID ADDING THE IMPULSE APPAREL PURCHASES ARE NOT THERE BECAUSE THE AVERAGE CUSTOMER IS WORRIED ABOUT BEING TAXED HEAVILY BY THE CLINTON ADMINISTRATION CORRALLING A HEALTHY SHARE OF THE JUNE STORE TRAFFIC WAS SEARS WHERE SALES AT STORES OPEN AT LEAST A YEAR JUMPED 12 FROM A YEAR EARLIER BEATING SEARS'S INTERNAL GOALS AND ANALYSTS' EXPECTATIONS WE HAD EXCELLENT ACROSSTHEBOARD SALES IN ALL OF OUR BUSINESSES WITHOUT THE BENEFIT OF EXTRAORDINARY PROMOTIONS SAID ARTHUR MARTINEZ SEARS CHAIRMAN AND CHIEF EXECUTIVE IN AN INTERVIEW SEARS HAD A VARIETY OF HOT ITEMS IN JUNE SUCH AS FOOTWEAR APPAREL APPLIANCES HOMEIMPROVEMENT AND PATIO MERCHANDISE THE WEATHER WAS HELPFUL AND WE WERE IN STOCK AND WELLPREPARED HE SAID SEARS SHARES CLIMBED 185 TO 58 IN LATE COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE DEPARTMENT STORES ALSO POSTED BETTERTHANEXPECTED SALES GAINS IN JUNE CASHING IN ON SHOPPERS' APPETITES FOR SHEETS CURTAINS AND TABLE LAMPS AT PENNEY'S BASED IN PLANO TEXAS JUNE SALES ROSE 45 AT STORES OPEN AT LEAST A YEAR AT ST LOUISBASED MAY DEPARTMENT STORES SAMESTORE SALES JUMPED 57 AT CINCINNATIBASED FEDERATED WHICH ANALYSTS ESTIMATE DOES ABOUT A THIRD OF ITS BUSINESS IN HOME GOODS SAMESTORE SALES ROSE 66 IN JUNE FEDERATED IS PLANNING FOR SALES INCREASES TO BE SLOWER SOMEWHAT IN THE FALL DUE TO THE SLUGGISH ECONOMY THE COMPANY SAID IN JUNE APPAREL SPECIALTY CHAINS WERE FORCED INTO HEAVY MARKDOWNS IN ORDER TO GENERATE BUSINESS AND THE RESULTS WERE STILL BELOW MOST RETAILER'S PLANS AT LIMITED BASED IN COLUMBUS OHIO SAMESTORE SALES ROSE 4 DRAGGED DOWN BY THE COMPANY'S FLAGSHIP LIMITED STORES DIVISION WHERE SAMESTORE SALES FELL ABOUT 5 ACCORDING TO ANALYSTS' ESTIMATES AT SAN FRANCISCOBASED GAP SAMESTORE SALES INCHED UP 2 PROMPTING SOME ANALYSTS TO LOWER THEIR QUARTERLY EARNINGS ESTIMATES ON GAP GAP SHARES FELL 50 CENTS TO 28 IN BIG BOARD TRADING OTHER APPAREL OPERATORS POSTED LACKLUSTER SALES IN JUNE AT CHARMING SHOPPES INC BASED IN BENSALEM PA SAMESTORE SALES WERE FLAT AT TJX COS BASED IN FRAMINGHAM MASS SAMESTORE SALES ROSE ONLY 3 AND CONTINUING ITS STRUGGLE TO APPEAL TO TRENDY YOUNG CUSTOMERS MERRYGOROUND BASED IN JOPPA MD POSTED A SAMESTORE SALES DECLINE OF 5 AMONG THE DISCOUNTERS WALMART STORES INC OF BENTONVILLE ARK THE NATION'S LARGEST RETAILER AND ONE THAT USUALLY OUTPACES COMPETITORS REPORTED A 7 RISE IN SAMESTORE SALES AT THE NATION'S SECOND LARGEST RETAILER KMART CORP SAMESTORE SALES GAINED 28 MINNEAPOLISBASED DAYTON HUDSON CORP'S TARGET DISCOUNT DIVISION POSTED A SAMESTORE SALES GAIN OF 6 BOOSTING DAYTON HUDSON'S OVERALL SAMESTORE GAIN TO 41 SALOMON BROS ANALYST JEFFREY FEINER NOTED THAT APPAREL RETAILERS WHICH COUNT ON GETTING ABOUT 75 OF THEIR OPERATING EARNINGS IN THE AUGUSTTOJANUARY PERIOD COULD STILL EXPERIENCE A REBOUND IN BUSINESS PROVIDED THAT THEIR FALL FASHIONS SELL BRISKLY AND THEY CONTINUE TO MAINTAIN TIGHT INVENTORY AND EXPENSE CONTROLS STILL OTHERS REMAIN CAUTIOUS CONCERNED THAT UNCERTAINTY OVER THE CLINTON ADMINISTRATION'S HEALTH CARE PLAN AND EXPECTED NEW TAXES HAVE DAMPED CONSUMER OPTIMISM AND DISCRETIONARY PURCHASES ROBERT BUCHANAN AN ANALYST AT ALEX BROWN & SONS INC SAID WHEN PEOPLE ARE CONFUSED THEY DON'T SPEND THEIR MONEY 9307090098 930709 HEARD ON THE STREET COMPUTER SCIENCES' SHARES HAVE HEATED UP BUT DOUBTS ARISE ON HOW LONG CLIMB CAN LAST BY LAURIE P COHEN AND RHONDA L RUNDLE STAFF REPORTERS OF THE WALL STREET JOURNAL COMPUTER SCIENCES' STOCK IS SURGING AMID UNCONFIRMED SPECULATION THAT THE EL SEGUNDO CALIF COMPANY IS ABOUT TO WIN A BIG CONTRACT WITH CANADA'S NORTHERN TELECOM YET A FEW DISSENTING VOICES CAN BE HEARD RAISING QUESTIONS ABOUT HOW LONG THE RALLY CAN LAST THE CONTRACT HOPES HAVE HELPED BOOST THE SHARES TO 83 FROM 77 7/8 IN THE 2 1/2 WEEKS SINCE THE NEWS THAT THE ENVIRONMENTAL PROTECTION AGENCY WAS SUSPENDING ONE OF COMPUTER SCIENCES' LARGEST DIVISIONS FROM BIDDING ON NEW CONTRACTS WITH ANY FEDERAL AGENCY MOST ANALYSTS ARE TAKING THEIR CUE FROM COMPUTER SCIENCES WHICH SAID LAST MONTH THAT THE EPA'S PROBLEM WITH ITS APPLIED TECHNOLOGY DIVISION SHOULD BE RESOLVED QUICKLY THIS WEEK THE COMPANY RELATES THAT IT HAS HAD SEVERAL MEETINGS WITH EPA AND THAT THE MATTER SHOULD BE SETTLED IN THE NEXT FEW BUSINESS DAYS MOREOVER COMPUTER SCIENCES IS THE FRONTRUNNER IN A COMPETITION TO WIN A GIANT CONTRACT FROM NORTHERN TELECOM VALUED AT AS MUCH AS 4 BILLION OVER 10 YEARS ANALYSTS SAY THE DEAL COULD TOP THE 3 BILLION PACT COMPUTER SCIENCES LANDED FROM GENERAL DYNAMICS IN 1991 STILL THERE ARE NAGGING QUESTIONS IN THE WASHINGTON DISPUTE COMPUTER SCIENCES IS DEALING WITH MORE THAN THE EPA WHICH SAID TWO WEEKS AGO THAT IT WAS IMPOSING THE SUSPENSION PENDING COMPLETION OF AN ONGOING INVESTIGATION SPECIFICALLY THE COMPANY IS FACING AN ONGOING CIVIL FRAUD INVESTIGATION BY THE DEPARTMENT OF JUSTICE ACCORDING TO A JUNE 21 GOVERNMENT MEMORANDUM OBTAINED BY THE WALL STREET JOURNAL SUCH PROBES CAN TAKE TIME TO CLEAR UP CONSIDER THE EPA DISPUTE BACK IN JUNE 1992 THE COMPANY TOLD SHAREHOLDERS THAT WE HAVE BEEN WORKING CLOSELY WITH THE EPA TO RESOLVE THE ISSUES RAISED BY CONGRESSIONAL COMMITTEES AND WE EXPECT THE MATTER TO BE CONCLUDED IN THE NEAR FUTURE RECENT STRENGTH IN THE STOCK SINCE THE ANNOUNCEMENT OF THE SUSPENSION INDICATES THAT INVESTORS AREN'T AWARE OF THE VERY LARGE POTENTIAL LOSS TO THE COMPANY SHOULD THE SUSPENSION NOT BE LIFTED BEFORE CRITICAL CONTRACTS ARE AWARDED CONCLUDES JEFF NEWMAN AT RAYMOND JAMES & ASSOCIATES APPLIED TECHNOLOGY ACCOUNTS FOR MORE THAN 500 MILLION IN ANNUAL REVENUE OR MORE THAN ONEFIFTH OF COMPUTER SCIENCES' TOTAL REVENUE AND SOME 40 OF ITS REVENUE FROM FEDERAL SOURCES BY THE END OF THE YEAR APPLIED TECHNOLOGY HOPES TO BID ON AT LEAST FOUR FEDERAL CONTRACTS TOTALING MORE THAN 1 BILLION THE LARGEST AND MOST SIGNIFICANT IS THE EASTERN RANGE TECHNICAL SERVICES CONTRACT A SIXYEAR 750 MILLION AIR FORCE JOB CURRENTLY SCHEDULED TO BE AWARDED NEXT FRIDAY COMPUTER SCIENCES SAYS IT CAN'T GET THAT ORDER WHILE THE EPA'S SUSPENSION IS IN EFFECT MOST OF THE STREET SEEMS UNPERTURBED THE IMPACT OF THE SUSPENSION IS APT TO BE A ONETIME CHARGE WITH VERY LITTLE LOST BUSINESS COWEN & CO ANALYSTS WROTE THE TEMPORARY FEDERAL NEWBUSINESS SUSPENSION IS UNLIKELY TO HAVE A MATERIAL INFLUENCE ON REVENUES OR EARNINGS SAYS STEPHEN T MCCLELLAN AT MERRILL LYNCH AT THE HEART OF THE EPA DISPUTE ARE CONTINUING CLAIMS BY THE AGENCY THAT IT HAS OVERPAID COMPUTER SCIENCES FOR WORK DONE BY UNDERQUALIFIED EMPLOYEES LAST YEAR TWO CONGRESSIONAL COMMITTEES HELD HEARINGS ON EPA CONTRACTMANAGEMENT PRACTICES AND SUGGESTED THE EPA WAS OVERPAYING COMPUTER SCIENCES ITS LARGEST CONTRACTOR AND THE EPA'S LETTER TO COMPUTER SCIENCES LAST MONTH ALLEGED THAT THE COMPANY HAD SUBMITTED A PROPOSAL FOR A CONTRACT THAT CONTAINED FALSE AND MISLEADING STATEMENTS ABOUT EMPLOYEES WHO WOULD WORK ON AN 8 MILLION EPA PROJECT SOME ANALYSTS ARE EAGER TO SEE THE EPA FLAP RESOLVED SOON IF IT WAS GOING TO BE RESOLVED SO QUICKLY WHY HASN'T IT BEEN DONE YET ASKS DEAN WITTER ANALYST TIM MCCOLLUM COMPUTER SCIENCES' PROBLEM SEEMS MORE SERIOUS THAN THEY'VE LET ON AS FOR THE NORTHERN TELECOM CONTRACT ANALYSTS HAVE A FEW QUESTIONS IF COMPUTER SCIENCES WERE TO WIN THIS CONTRACT THE ANALYSTS AREN'T CERTAIN HOW PROFITABLE IT WILL BE DEAN WITTER'S MR MCCOLLUM SAYS RECENT DISAPPOINTING RESULTS AT NORTHERN TELECOM MAY PROMPT THE CANADIAN COMPANY TO PUSH HARDER TO SAVE MONEY ON THE CONTRACT IT IS IMPOSSIBLE TO DETERMINE JUST HOW ADDITIVE TO EARNINGS THIS CONTRACT WOULD ULTIMATELY BE COMPUTER SCIENCES DOES SEEM TO HAVE AN EDGE OVER ITS MAIN RIVAL FOR THE CONTRACT INTERNATIONAL BUSINESS MACHINES BECAUSE COMPUTER SCIENCES IS TEAMED WITH HEWLETTPACKARD SAYS SUSAN SCRUPSKI EDITOR OF THE INTEGRATOR A NEWSLETTER PUBLISHED BY BOSTONBASED INTERNATIONAL DATA GROUP THE CSCHP TEAM UNDERSTANDS THE WORLDS OF BOTH MAINFRAMES AND MINICOMPUTERS SHE SAYS BUT NONE OF THE COMPANIES ARE TALKING AND MS SCRUPSKI WARNS THAT ANY DEAL COULD FALL THROUGH COMPUTER SCIENCES COULD BACK AWAY FROM PUTTING UP AS MUCH AS 200 MILLION IN CAPITAL THAT MIGHT BE REQUIRED TO CEMENT THE CONTRACT AND IBM CAN'T BE COUNTED OUT OF THE RACE 9307090097 930709 FRANCHISEES NAME FOODMAKER IN SUIT OVER SALE OF UNIT BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL A LARGE GROUP OF FOODMAKER INC FRANCHISEES FILED A LAWSUIT CHARGING THAT THE COMPANY'S PENDING SALE OF ITS CHI CHI'S UNIT IS A FRAUD AIMED AT PLACING THE MEXICAN RESTAURANT CHAIN BEYOND THE REACH OF FOODMAKER CREDITORS FOODMAKER'S ONLY OTHER SUBSTANTIAL ASSET ITS JACK IN THE BOX UNIT HAS BEEN FINANCIALLY TROUBLED SINCE A JANUARY OUTBREAK OF FOOD POISONING CAUSED TWO DEATHS AND LEFT 450 PEOPLE ILL IN NEVADA AND THE PACIFIC NORTHWEST THE SUIT FILED IN STATE COURT IN SAN DIEGO ALSO ALLEGES THAT FOODMAKER IS IN POOR FINANCIAL CONDITION AND IS ON THE VERGE OF FILING FOR CHAPTER 11 BANKRUPTCY PROTECTION THE COMPANY SAID IT HADN'T SEEN THE SUIT FOODMAKER SAID HOWEVER THAT FRANCHISEES REPRESENTING 325 JACK IN THE BOX RESTAURANTS ALL BUT ABOUT 100 OF ITS FRANCHISED OUTLETS WERE INVOLVED IN THE LITIGATION LAWSUITS ARE OFTEN FILED THAT ARE BASED ON A MISUNDERSTANDING OF THE FACTS A FOODMAKER SPOKESWOMAN SAID WE DO NOT INTEND TO COMMENT ON THE MERITS OF THIS CASE IN THE MEDIA FOODMAKER HAS BEEN ROCKED BY EARLIER LAWSUITS FILED MOSTLY ON BEHALF OF CHILDREN WHO DIED OR BECAME ILL AFTER EATING HAMBURGERS FROM JACK IN THE BOX RESTAURANTS AS THE SUITS AND NEGATIVE PUBLICITY MOUNTED FRANCHISEES RALLIED BEHIND THE COMPANY BUT NEGOTIATIONS BETWEEN THE COMPANY AND THE FRANCHISEES OVER HOW MUCH CONTINUING ASSISTANCE WOULD BE FORTHCOMING BROKE OFF LAST FRIDAY APPARENTLY SPURRING THE LAWSUIT MITCHELL S SHAPIRO THE FRANCHISEES' LAWYER SAID FOODMAKER GAVE A FAIR TEMPORARY RELIEF PACKAGE AND IT APPEARED THEY WOULD CONTINUE TO PROVIDE FAIR RELIEF TO THE FRANCHISEES HE SAID SALES AMONG FRANCHISEES REMAIN OFF BY 5 TO 30 AND THAT MUCH OF EXISTING SALES ARE DRIVEN BY ADVERTISING AND DEEP DISCOUNTS EARLIER THIS WEEK FOODMAKER AND TWO PARTNERS SAID THEIR 235 MILLION OFFER TO ACQUIRE CLOSELY HELD RESTAURANT ENTERPRISES GROUP INC RECEIVED THE BACKING OF RESTAURANT ENTERPRISES' MAJORITY SHAREHOLDER WR GRACE & CO FOODMAKER'S PARTNERS ARE INVESTOR LEON BLACK'S APOLLO ADVISORS LP AND A PARTNERSHIP HEADED BY INVESTOR LEONARD GREEN RESTAURANT ENTERPRISES GROUP IS BASED IN IRVINE CALIF UNDER THE AGREEMENT THE INVESTMENT GROUP WOULD FORM A NEW COMPANY BY MERGING RESTAURANT ENTERPRISES WITH FOODMAKER'S CHICHI'S CHAIN OF EATERIES THE COMBINATION WOULD FORM ONE OF THE NATION'S LARGEST MEXICAN RESTAURANT CHAINS THE TRANSACTION SUBJECT TO VARIOUS CONDITIONS IS EXPECTED TO CLOSE LATE THIS YEAR FOODMAKER SAID FOODMAKER WOULD GET A 33 STAKE IN THE NEW COMPANY AND 270 MILLION IN CASH WHICH WOULD BE RAISED THROUGH NOTES OFFERED BY THE NEW COMPANY APOLLO ADVISORS AND LEONARD GREEN & PARTNERS WOULD INVEST 108 MILLION AND WOULD TOGETHER HOLD A 67 STAKE IN THE NEW COMPANY 9307090096 930709 THURSDAY'S MARKETS BOND RALLY TRIGGERS SURGE IN STOCK PRICES BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL SURGING BOND PRICES HELPED SPARK A ROBUST STOCK MARKET RALLY THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SURGED 3875 POINTS TO 351442 STANDARD & POOR'S 500STOCK INDEX GAINED 581 TO 44864 AND THE NASDAQ COMPOSITE INDEX ROSE 392 TO 70271 STOCK PRICES WERE LITTLE CHANGED IN EARLY TRADING AMID SLUMPING BOND PRICES BUT REBOUNDING BOND PRICES THEN TRIGGERED THE SURGE IN THE STOCK MARKET AS RELIEVED BOND TRADERS NOTED DECLINES IN GOLD AND OIL PRICES AND IN THE COMMODITY RESEARCH BUREAU'S INDEX ALL OF WHICH EASED INFLATION FEARS STOCKS GAINED FURTHER SUPPORT FROM A DROP IN INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE DURING THE WEEK ENDED JULY 3 AND FROM STRONG OVERSEAS MARKETS GOOD NEWS ON THE ECONOMY COMBINED WITH FAIRLY GOOD NEWS ON INFLATION LEFT PEOPLE FEELING PRETTY GOOD ABOUT THE STOCK MARKET SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP BUT MR JOHNSON CAUTIONED INVESTORS NOT TO MAKE TOO MUCH OF THE SHARP ADVANCE HE SAID THE FACTORS CONTRIBUTING TO IT WERE MERELY DAILY EVENTS THAT CAUSE THE MARKET TO SWING DIFFERENT WAYS IT'S JUST SURFACE NOISE WE'RE LOOKING AT GERALD SIMMONS SENIOR VICE PRESIDENT IN CHARGE OF TRADING AT INTERSTATE/JOHNSON LANE IN ATLANTA SAID STOCKS ALSO BENEFITED FROM A PERCEPTION THAT SECONDQUARTER EARNINGS WILL BE STRONG WE COULD HAVE A DECENT SUMMER RALLY IF EARNINGS COME IN BETTER THAN EXPECTED HE SAID OVERSEAS GERMAN STOCK PRICES SOARED 37 TO THEIR HIGHEST LEVEL IN MORE THAN A YEAR ON EXPECTATIONS OF FURTHER GERMAN INTEREST RATE CUTS AND STRONG BUYING BY INTERNATIONAL INVESTORS THE RALLY IN GERMANY SPREAD TO OTHER EUROPEAN MARKETS WITH FRENCH STOCKS CLIMBING 19 SWITZERLAND AND HOLLAND JUMPING ABOUT 1 ITALY 19 AUSTRIA 29 AND NORWAY 15 MICHAEL HOWELL HEAD GLOBAL STRATEGIST AT BARING SECURITIES IN LONDON SAID INTERNATIONAL INVESTORS ARE INCREASING THEIR EXPOSURE TO THE GERMAN MARKET AFTER UNDERWEIGHTING IT FOR SOME TIME FOR INSTANCE MORGAN STANLEY & CO TOLD CLIENTS IT WAS INCREASING THE GERMAN STOCK PORTION OF ITS MIXEDASSET EUROPEAN MODEL PORTFOLIO TO 13 FROM 8 IT SAID THE COMBINATION OF LOWER INTEREST RATES A WEAKER MARK AND RESTRUCTURING WOULD MAKE GERMAN COMPANIES MORE COMPETITIVE MR HOWELL SAID THAT STOCK MARKETS IN CONTINENTAL EUROPE ARE ATTRACTIVE PARTLY BECAUSE OF UNCERTAINTY IN OTHER PARTS OF THE WORLD HE POINTED TO CONCERN OVER THE OUTCOME OF THE JULY 18 JAPANESE PARLIAMENTARY ELECTIONS THE SLOW US ECONOMIC RECOVERY BRITISH POLITICAL PROBLEMS AND FEARS THAT THE HONG KONG STOCK MARKET WILL BE HURT BY CHINA'S DECISION TO COOL ITS OVERHEATING ECONOMY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 068 TO 10576 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 2829 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1292 ISSUES ROSE AND 725 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE MORE THAN A QUARTER OF A POINT OR JUST OVER 125 FOR EACH 1000 FACE AMOUNT TO YIELD 665 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 17023 MARKS AND 10855 YEN COMPARED WITH 17065 MARKS AND 10765 YEN WEDNESDAY 9307090095 930709 IN AGE OF AUSTERITY SOME STILL EXALT ONE CORPORATE FRILL THE EXECUTIVE DINING ROOM GETS THREE CHEERS AT SONY AND GEORGIAPACIFIC TOO BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL EVERYBODY KNOWS THAT EXECUTIVE DINING ROOMS ARE A THING OF THE PAST RIGHT AFTER ALL IT SEEMS THAT THE FIRST THING EVERY COSTCUTTING CEO DOES THESE DAYS IS ELIMINATE THE EXECUTIVE DINING ROOM TO SAVE MONEY IMPRESS SHAREHOLDERS AND BREAK DOWN SOME OF THE TRADITIONAL CLASS BARRIERS BETWEEN EXECUTIVES AND EVERYONE ELSE FORGET FOR EXAMPLE THE TROUT AMANDINE IN THE EXECUTIVE DINING ROOM AT TENNECO INC IN HOUSTON THAT'S BECAUSE THE DINING ROOM ITSELF HAS SERVED ITS LAST LUNCH NOWADAYS SENIOR OFFICERS FREQUENT THE TENNECO EMPLOYEE CAFETERIA HOME OF THE 395 SEAFOOD COMBO HUSH PUPPIES INCLUDED LET'S FACE IT SAYS A WISTFUL ROBERT THOMAS HEAD OF TENNECO'S GAS DIVISION IT'S JUST NOT THE SAME IN JANUARY GENERAL MOTORS CORP IN DETROIT MOTHBALLED ITS DINING ROOMCRYSTAL CHANDELIERS POLISHED SILVER AND ALL THAT FOLLOWED SIMILAR CLOSINGS AT BANK SOUTH CORP AT FIRST BANK SYSTEM AND AT THE INSURANCE COMPANY USF&G CORP COMPANIES HAVE FOUND PLENTY OF GOOD REASONS FOR SHUTTING DOWN THEIR DINING OPERATIONS COSTS AND CASTE ARE BUT TWO THIS ALL REFLECTS A CONCERN ABOUT MANAGEMENT OVERINDULGENCE SAYS JEROME ROSOW PRESIDENT OF WORK IN AMERICA INSTITUTE AN EMPLOYMENTISSUES RESEARCH GROUP DICK O'BRIEN A GM VICE PRESIDENT NOTES THAT THE OFFICERS' DINING ROOM HAS SIMPLY GONE THE WAY OF OTHER GM AMENITIES LIKE HAT CHECK ELEVATOR OPERATORS AND SPITTOONS TO MAINTAIN VESTIGES OF THE PAST IS JUST INAPPROPRIATE HE SAYS PRESIDENT CLINTON HAS TAKEN EXECUTIVE BRANCH DINING ROOMS TO TASK THE LABOR DEPARTMENT HEEDING THE CALL CLOSED ITS EXECUTIVE DINING ROOM THUS SAVING THE WHITE HOUSE THINKS 107329 A YEAR BUT THERE IS A QUIET BACKLASH OUT THERE AMONG BUSINESS PEOPLE WHO BELIEVE THAT IN THEIR RUSH TO PADLOCK EXECUTIVE DINING ROOMS SOME COMPANIES MAY BE THROWING OUT THE BABY SHRIMP WITH THE BATH WATER ALL TYPES OF EXECUTIVE PERKS ARE BEING EXAMINED AND SHOULD BE SAYS AD PETE CORRELL CHIEF EXECUTIVE OF GEORGIAPACIFIC CORP THE GIANT FORESTPRODUCTS COMPANY BUT EXECUTIVE DINING ROOMS ARE BEING GROSSLY MISREPRESENTED AS NEGATIVE PAUL HYSEN A CORPORATE FOODSERVICE CONSULTANT IN LIVONIA MICH WHOSE CLIENTS INCLUDE COLLEGES HOSPITALS AND BUSINESSES AGREES THAT CLOSING DINING ROOMS WILLYNILLY IS SILLY IT'S ALL A KNEEJERK REACTION HE SAYS IF YOU HAVE TO REACH DOWN TO THE FOODSERVICE LEVEL TO REACH YOUR BOTTOM LINE YOU HAVE MUCH BIGGER PROBLEMS THAN FOOD SERVICE INDEED SOME COMPANIES STILL SWEAR BY THE EXECUTIVE DINING ROOM SONY CORP HIRED BARRY WINE A NEW YORK RESTAURATEUR LATE OF THE QUILTED GIRAFFE TO HELP DEVELOP THE GLITZY NEW SONY CLUB WHICH COVERS MOST OF THE 35TH FLOOR OF THE FORMER AT&T BUILDING IN NEW YORK THE MAIN DINING ROOM DONE IN BLACK TERRAZZO AND STAINLESS STEEL SEATS 65 IN CONTEMPORARY ELEGANCE WITH A RECEPTION LOUNGE A MAITRE D' 12 WAITERS AND SIX CHEFS OFF TO ONE SIDE IS THE GRILL ROOM A CASUALDINING AREA WITH A BRICK PIZZA OVEN THERE ARE FOUR SMALLER WOODPANELED PRIVATE DINING ROOMS AND A PIANO BAR IT'S ALL VERY PRETTY AND NOBODY IS COMPLAINING SONY BUILT ITS EATING PLACES SO EXECUTIVES COULD ENTERTAIN WHILE STAYING NEAR THEIR DESKS AND OUT OF NEW YORK TRAFFIC LUNCH CAN BE DONE WITHIN AN HOUR TO RESPECT SONY EXECUTIVES' TIME SAYS GUY LIEBLER PRESIDENT OF SONY PLAZA INC WHICH IS IN CHARGE OF THE CLUB THE QUALITY OF EASTMAN KODAK CO'S 15 EXECUTIVE AND SPECIAL DINING AREAS HELPED THE COMPANY WIN LAST YEAR'S SILVER PLATE AWARD THE OSCAR OF THE FOODSERVICE INDUSTRY LEHMAN BROTHERS A DIVISION OF AMERICAN EXPRESS CO HAS A VICE PRESIDENT IN CHARGE OF ITS DINING SERVICES IT MIGHT ENHANCE HEALTH AND PRODUCTIVITY TO TRIM SOME OF THE CORPORATE FAT ASSOCIATED WITH EXECUTIVE DINING THE 16OUNCE PORTERHOUSE STEAKS AND THE ROAST DUCK THE DRY MARTINIS THE AFTERLUNCH LIQUEURS AND THE FAT CIGARS LEE IACOCCA REGULARLY ORDERED EXPENSIVE STRIPSTEAK WHEN HE WAS PRESIDENT OF FORD MOTOR CO IN THE 1970S THEN HAD IT GROUND INTO HAMBURGERS A COMPANY HISTORY REPORTS BUT WHILE SERVING SALADS IS ONE THING WHY DUMP THE DINING ROOM GEORGIAPACIFIC IS FIGHTING THE TREND WITH ITS PENTHOUSE DINING HALL ON THE 51ST FLOOR OF CORPORATE HEADQUARTERS IN DOWNTOWN ATLANTA TALKS WITH TAKEOVER TARGETS AND CUSTOMERS ALIKE TAKE PLACE AROUND WALNUT TABLES THE CHINA IS LENOX THERE HAVE BEEN TIMES RECALLS T MARSHALL HAHN JR THE COMPANY'S CHAIRMAN WHEN WE GOT OVER THE HURDLES AND GOT THE HANDSHAKE IN THAT RELAXED ENVIRONMENT THE 11YEAROLD ROOM HAS A BRIGHT OPENAIR FEEL ITS CEILING IS AN EXPANSE OF GLASS SEATING 50 IT HAS BAMBOO AND LEATHER CHAIRS THAT BLEND SMARTLY WITH BLUE CARPETING AND WHITE MARBLE WE TRY TO MAKE IT FUNCTIONAL SAYS MR CORRELL THE CEO OVER A RECENT LUNCH OF CHICKEN CORDON BLEU AND RICE PILAF GLANCING OUT AT THE CITY BELOW HE DESCRIBES THE ESTABLISHMENT AS A KIND OF WENDY'S IN THE SKY WELL NOT EXACTLY WENDY'S FRANCHISES DON'T TYPICALLY EMPLOY AN EXECUTIVE CHEF LIKE CARMEN SANDERS WHO WAS TRAINED IN EUROPE AND CAN PUT TOGETHER DISHES RANGING FROM VEAL PICCATA AND MARINATED FLANK STEAK TO PRALINE CREPES AND PECAN TARTS GEORGIAPACIFIC THINKS ITS DINING ROOM GIVES IT AN EDGE WITH FOREIGN CLIENTS NAK CHUL CHOI CHAIRMAN OF THE KOREAN PAPER MANUFACTURERS ASSOCIATION HAD LUNCH THERE AND LATER SENT HIS HOSTS A LIMITEDEDITION ORIENTAL BELL COMMEMORATING THE 1988 SEOUL OLYMPICS IN THE ASIAN CULTURE THIS ROOM GOES A LONG WAY TOWARD BUILDING TRUST SAYS CLINT KENNEDY A GEORGIAPACIFIC GROUP VICE PRESIDENT THE BUSINESS LUNCH WOULD BE EXCEEDINGLY HARD TO DISPENSE WITH AND THE COMPANY CAFETERIA USUALLY IS NOT THE PLACE FOR IT BELINDA MORGAN AN EXECUTIVE VICE PRESIDENT AT BANK SOUTH IN ATLANTA WHICH CLOSED ITS DINING ROOM LAST YEAR SAYS EXECUTIVES HAVE MOVED THEIR CLIENT LUNCHES TO THE NEARBY COMMERCE CLUB WHICH CHARGES ANNUAL DUES OF 960 SAYS MS MORGAN WE JUST ELIMINATED THE STAFF STANDING AROUND WAITING FOR SOMEONE TO SHOW UP GEORGIAPACIFIC WHICH REGULARLY REVIEWS THE COSTS AND BENEFITS OF ITS DINING ROOM WILL SAY ONLY THAT ITS 1992 FOOD EXPENSES TOTALED ABOUT 36000 OR AN AVERAGE OF 10 A PLATE FOR LUNCHES AND DINNERS THE FIGURE IS A BIT DECEPTIVE IN THAT IT FAILS TO INCLUDE UNSPECIFIED COSTS KITCHEN LABOR UTILITIES A LEASE AND SUPPLIES SUCH AS PLATES AND TABLE LINEN EXPLAINS A SPOKESWOMAN IF AN OUTSIDE INVESTOR LOOKED AT THE OVERALL NUMBER WITHOUT KNOWING ALL THAT IT ACCOMPLISHED IT MIGHT SEEM BIG IN FACT SOME ARGUE THAT IT MAY NOT PAY AT ALL TO DO EXECUTIVE DINING ON THE CHEAP FOR SOME ANALYSTS AND INVESTORS WHAT COMPANIES DO WITH THEIR EXECUTIVE DINING ROOMS EVEN WHAT THEY SERVE FOR LUNCH IS A FINANCIAL BELLWETHER THE QUALITY OF FARE IS DIRECTLY RELATED TO MANAGEMENT'S FEEL FOR THE BUSINESS SAYS LAWRENCE COHN OF PAINEWEBBER INC FOR 23 YEARS HE HAS FOLLOWED THE BANKING INDUSTRY AND ITS CULINARY CYCLES IN THE LATE 1970S HE NOTED THAT BANKERS TRUST NEW YORK CORP RIGHT BEFORE A DOWNTURN IN BUSINESS BEGAN SCRIMPING ON ITS MEALS THEN WHEN THEY SERVED FRESH MAINE LOBSTER ONE DAY HE SAYS I KNEW THE BANK HAD TURNED THE CORNER 9307090094 930709 US LINES UP AID FOR RUSSIA AT G7 MEETING FUND NOW TOTALS 3 BILLION COMMUNIQUE SETS GOAL OF LOWER INTEREST RATES BY DAVID WESSEL AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE US SQUEEZED OUT EXTRA CONTRIBUTIONS FOR A FUND TO HELP RUSSIA PRIVATIZE BIG STATE ENTERPRISES BRINGING PRESIDENT CLINTON THREEQUARTERS OF THE WAY TO THE 4 BILLION TARGET THAT HE SET EARLIER AND ADDING LUSTER TO HIS FIRST GROUP OF SEVEN SUMMIT THE CLINTON ADMINISTRATION PORTRAYED THE 3 BILLION IN COMMITMENTS AS ANOTHER VICTORY FOR THE PRESIDENT COMING A DAY AFTER HE CELEBRATED PROGRESS IN WORLD TRADE TALKS TREASURY SECRETARY LLOYD BENTSEN BOASTED THAT IN CONTRAST WITH THE PAST THIS WAS A SUMMIT OF ACHIEVEMENT ALL THE LASTMINUTE CONTRIBUTIONS TO THE RUSSIAN FUND ARE G7 EXPORT CREDITS AND LOANS FROM INTERNATIONAL FINANCIAL INSTITUTIONS THE PRESIDENT HAD TO SETTLE FOR 500 MILLION IN OUTRIGHT GRANTS AND TECHNICAL AID WELL SHY OF HIS 2 BILLION GOAL BOOSTING THE TOTAL REQUIRED HARD LOBBYING BY MR CLINTON WHO HAD TELEPHONED GERMAN CHANCELLOR HELMUT KOHL AND BRITISH PRIME MINISTER JOHN MAJOR LAST WEEK IN THIS WEEK'S MEETINGS MR CLINTON DEVOTED HIS LONGEST SPEECH TO ARGUING THAT AIDING RUSSIA IS THE SINGLE MOST IMPORTANT FOREIGNPOLICY INITIATIVE THAT THE GROUP OF SEVEN MEMBERS WERE UNDERTAKING PRESIDENTIAL ADVISER DAVID GERGEN SAID IT WOULD BE WRONG FOR US TO BE HYPERBOLIC HE SAID BUT MR CLINTON IS HELPING TO DRIVE THE AGENDA AND HAS BEEN A MAJOR FORCE HERE PLAYING TO THE AUDIENCE BACK HOME MR CLINTON TOOK EVERY OPPORTUNITY TO TURN THE ARCANA OF INTERNATIONAL ECONOMICS INTO A PLEDGE TO CREATE MORE JOBS AND WON G7 ENDORSEMENT FOR AN ADMINISTRATION PROPOSAL TO HOLD A SUMMIT ON UNEMPLOYMENT THIS FALL IN THE US TO PROMOTE INTERNATIONAL ECONOMIC GROWTH EUROPE ACKNOWLEDGED IN THE G7'S ECONOMIC COMMUNIQUE THE OVERRIDING IMPORTANCE OF ENSURING THAT CONDITIONS FOR RAPID REDUCTIONS IN INTEREST RATES ARE CREATED WHILE JAPAN PLEDGED TO IMPLEMENT FISCAL AND MONETARY MEASURES AS NECESSARY TO CONTRIBUTE TO SIGNIFICANTLY REDUCING ITS TRADE SURPLUS MR CLINTON ALSO WON G7 PRAISE FOR THE LONG OVERDUE US EFFORT TO CUT ITS BUDGET DEFICIT MEANWHILE US AND JAPANESE OFFICIALS CONTINUED NEGOTIATIONS AIMED AT ESTABLISHING A NEW FRAMEWORK FOR ECONOMIC RELATIONS BETWEEN THE TWO NATIONS AS LAMEDUCK PRIME MINISTER KIICHI MIYAZAWA PRESSED TO DEMONSTRATE THAT HIS BELEAGUERED LIBERAL DEMOCRATIC PARTY CAN MANAGE THE IMPORTANT RELATIONSHIP WITH THE US BUT WITH MR CLINTON ASSERTING THAT HE WOULD AGREE ONLY TO A GOOD AGREEMENT FOR AMERICA THE OUTCOME OF THE TALKS REMAINED IN DOUBT AT MR MIYAZAWA'S INVITIATION MR CLINTON WAS EXPECTED TO JOIN THE PRIME MINISTER FOR AN INFORMAL DINNER FRIDAY NIGHT THE 3 BILLION FOR THE FIRST 18 MONTHS OF THE RUSSIAN PRIVATIZATION EFFORT INCLUDES THE 500 MILLION IN GRANTS AND TECHNICAL ASSISTANCE TO NEWLY PRIVATIZED ENTERPRISES OF WHICH THE US IS PUTTING UP 125 MILLION 1 BILLION IN EXPORT CREDITS WITH 250 MILLION FROM THE US 1 BILLION IN LOANS TO ENTERPRISES FROM THE WORLD BANK AND EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AND 500 MILLION IN WORLD BANK LOANS TO HELP LOCAL GOVERNMENTS TAKE OVER SOCIAL SERVICES NOW PROVIDED BY BIG STATEOWNED EMPLOYERS BEFORE COMING TO TOKYO US OFFICIALS SAID THEY EXPECTED TO ANNOUNCE 2 BILLION IN PLEDGES IN RECENT DAYS THEY SECURED 500 MILLION MORE IN EXPORT CREDITS AND 500 MILLION IN INTERNATIONAL FINANCIAL INSTITUTIONS LOANS SUPPORT FOR PRIVATIZATION EFFORT IS A MAJOR COMPONENT OF THE ADMINISTRATION'S RUSSIAN AGENDA THE THING THAT MAKES THE PROCESS OF REFORM IRREVERSIBLE IS PRIVATIZATION TREASURY UNDERSECRETARY LAWRENCE SUMMERS SAID THE US CONTRIBUTION ALREADY HAS BEEN APPROVED BY THE HOUSE AND THE SENATE HASN'T YET ACTED ON THE MATTER BUT THE US PRIVATIZATIONFUND PROPOSAL THE MOST INNOVATIVE AND AMBITIOUS ELEMENT OF ITS AID PACKAGE GOT OFF TO A BAD START WHEN IT CAUGHT THE G7 BY SURPRISE IN APRIL INTERNAL DISARRAY HAMPERED THE ADMINISTRATION'S ATTEMPT TO SELL IT TO SKEPTICAL OFFICIALS OVERSEAS OUR RESPONSIBILITY NOW IS MAKING THIS WORK SO THAT A YEAR FROM NOW THERE WON'T BE A CONTROVERSY WHEN THE US SEEKS MORE MONEY FOR THE PROGRAM SAID STROBE TALBOTT WHO COORDINATES US POLICY TOWARD RUSSIA BACK IN APRIL THE G7 NATIONS PLEDGED 10 BILLION IN EXPORT CREDITS FOR VARIOUS PURPOSES THE US WANTED TO DEDICATE A FRACTION OF THOSE GUARANTEES TO PRIVATIZED ENTERPRISES OTHER COUNTRIES RESISTED EXPORTCREDIT AGENCIES TRADITIONALLY INSIST ON GOVERNMENT GUARANTEES FOR THEIR LOANS AND WILL CONTINUE TO BUT AT THE URGING OF THE US THE AGENCIES ARE NOW EXPLORING WAYS TO AVOID GOVERNMENT INVOLVEMENT ONE OPTION IS TO MAKE LOANS TO PRIVATE RUSSIAN FINANCIAL INSTITUTIONS THAT WOULD THEN MAKE LOANS FOR EQUIPMENT TO LOCAL ENTERPRISES MR BENTSEN ARGUED YESTERDAY THAT LOANS ARE BETTER THAN GRANTS BECAUSE THEY REQUIRE MORE DISCIPLINE FOR THE ENTERPRISE MEANWHILE RUSSIA AND JAPAN MOVED TO THAW THEIR COLD WAR AN ENMITY THAT HAS OUTLASTED THE SOVIET UNION'S COLLAPSE IN THE LATEST STEPS IN ONE OF ASIA'S MOST INTRICATE DIPLOMATIC MINUETS RUSSIAN PRESIDENT BORIS YELTSIN HAD A FRIENDLY HALFHOUR MEETING WITH MR MIYAZAWA JAPAN HAS COME UNDER GROWING PRESSURE FROM THE US AND EUROPE TO HELP RUSSIA BUT THE JAPANESE HAVE INSISTED ON GETTING BACK FOUR ISLANDS SEIZED BY THE SOVIETS AT THE END OF WORLD WAR II JAPAN HAS ALSO DEMANDED AN APOLOGY FROM RUSSIA FOR THE SOVIET UNION'S TREATMENT OF JAPANESE PRISONERS OF WAR MR YELTSIN PROVIDED NEITHER BUT HE GENUFLECTED ENOUGH TO PLEASE HIS PROTOCOLMINDED HOSTS EXPRESSING REGRET FOR CANCELING TWO PREVIOUS VISITS TO JAPAN THIS YEAR PROMISING TO RETURN IN OCTOBER AND SAYING THAT IT IS IN OUR POWER TO REMOVE THE OBSTRUCTIONS OF THE PAST DEMONSTRATING ONCE AGAIN THE DIFFERENCES BETWEEN THE CLINTON AND BUSH ADMINISTRATIONS THIS YEAR'S G7 ECONOMIC COMMUNIQUE WAS DOTTED WITH REFERENCES TO THE ENVIRONMENT INCLUDING A USLED DEMAND THAT THE WORLD BANK MAKE ENVIRONMENTALIMPACT STATEMENTS ON ITS PROJECTS SEPARATELY THE G7 HEADS OF STATE TOUGHENED A STATEMENT ABOUT BOSNIA AT THE LAST MINUTE BUT STOPPED SHORT OF REPEATING THE THREAT OF MILITARY ACTION THAT WAS MADE AT LAST YEAR'S SUMMIT IF THE SERBS AND CROATS PERSIST IN DISMEMBERING BOSNIA THROUGH CHANGES OF BORDER BY FORCE OR ETHNIC CLEANSING THEY WILL PLACE THEMSELVES BEYOND THE PALE OF THE INTERNATIONAL COMMUNITY AND CANNOT EXPECT ANY ECONOMIC OR COMMERCIAL ASSISTANCE THE G7 POLITICAL COMMUNIQUE DECLARED THE DECLARATION VOWED TO CONTINUE SANCTIONS AND WARNED OF POSSIBLE STRONGER MEASURES A PHRASE THAT US OFFICIALS DEFINED AS A REFERENCE TO ARMING THE BOSNIAN MUSLIMS AND BOMBING SERB POSITIONS THE POLITICAL COMMUNIQUE SINGLED OUT IRAQ LIBYA AND IRAN FOR CRITICISM EVEN THOUGH SOME G7 NATIONS HAVE STRONG TRADE LINKS WITH THOSE COUNTRIES A SENIOR US OFFICIAL SAID THE LANGUAGE WAS AN ATTEMPT TO GET THOSE WITH TRADING LINKS TO IRAN IN PARTICULAR TO ACKNOWLEDGE THAT IRAN'S BEHAVIOR IS A THREAT REMINDING ITS ALLIES OF MISTAKES MADE IN DEALING WITH IRAQ THE US WANTS TO DISCOURAGE THE SALE OF EQUIPMENT TO IRAN THAT HAS MILITARY USES JACOB M SCHLESINGER IN TOKYO CONTRIBUTED TO THIS ARTICLE 9307090093 930709 BRITAIN'S PLAN TO SELL BT STAKE FACES HURDLES BRITISH TELECOM IS MEETING GROWING COMPETITION TOUGHENED REGULATION BY SHOBA PURUSHOTHAMAN SPECIAL TO THE WALL STREET JOURNAL LONDON THE BRITISH GOVERNMENT IS TRYING TO SELL 52 BILLION 776 BILLION OF STOCK IN BRITISH TELECOMMUNICATIONS PLC AT A TIME WHEN THE COMPANY IS FACING GROWING COMPETITION AND TOUGHER REGULATORY CONSTRAINTS IN ITS MAJOR DOMESTIC MARKET UNDERWRITERS FOR THE ISSUE THURSDAY BEGAN SEEKING COMMITMENTS FROM POTENTIAL INTERNATIONAL INVESTORS AND INSTITUTIONAL FUNDS FOR THE ISSUE WHICH WILL SEE THE BRITISH GOVERNMENT DISPOSE OF ITS REMAINING 22 STAKE IN BT THE BRITISH PUBLIC ALREADY HAS REGISTERED IN LARGE NUMBERS FOR THE RETAIL PORTION OF THE OFFERING BUT SEVERAL FUND MANAGERS SAY THEY'RE CAUTIOUS ABOUT THE OFFERING DESPITE BT'S RECORD OF STRONG EARNINGS AND A GROSS YIELD ON THE SHARES OF MORE THAN 10 AFTER YEARS OF ENJOYING A NEARMONOPOLY OF THE LUCRATIVE UK MARKET BT HAS COME UNDER INCREASINGLY TOUGH SCRUTINY FROM THE OFFICE OF TELECOMMUNICATIONS OR OFTEL THE UK REGULATOR THAT IS DETERMINED TO CREATE A MORE COMPETITIVE TELECOMMUNICATIONS MARKET IN BRITAIN BT STILL HOLDS MORE THAN 90 OF THE UK MARKET SHARE BUT THE CLOCK IS TICKING FAST ANALYSTS SAY THERE'S NO DOUBT THE REGULATORY REGIME IN THE UK IS SET TO BECOME TIGHTER RATHER THAN MORE LENIENT SAID PATRICK HICKEY AN ANALYST AT HENDERSON CROSTHWAITE INSTITUTIONAL BROKERS LTD IN LONDON SINCE BT'S PRIVATIZATION BEGAN IN 1984 IT HAS HAD TO FEND OFF JUST ONE DOMESTIC COMPETITOR MERCURY COMMUNICATIONS PLC A UNIT OF CABLE & WIRELESS PLC BUT THANKS TO THE REGULATOR'S DILIGENCE THERE ARE NOW 20 OTHERS THAT HAVE OBTAINED LICENSES TO OFFER COMPETING SERVICES AND ANOTHER 40 AWAITING GOVERNMENT APPROVAL INCLUDING GIANTS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO WHAT THIS MEANS FOR INVESTORS IS THAT BT'S PAST IS NO GUIDE TO ITS FUTURE SAID AN UNDERWRITER CLOSELY INVOLVED WITH THE ISSUE NONE OF THE BANKERS INVOLVED IN THE TRANSACTION AGREED TO BE QUOTED BY NAME BECAUSE OF SECURITIES AND EXCHANGE COMMISSION RESTRICTIONS AS A RESULT OF THE SHARES BEING OFFERED IN THE US THE FINAL PRICE FOR THE NEW SHARES WILL BE ANNOUNCED JULY 18 AFTER THE OFFERING TO UK AND INTERNATIONAL INVESTORS CLOSES BUT THE GOVERNMENT HAS SAID THAT PAYMENT FOR THE SHARES WILL BE MADE IN INSTALLMENTS WITH AN INITIAL SUM OF 150 PENCE 224 DUE FROM RETAIL INVESTORS AND 160 PENCE FROM INSTITUTIONAL AND INTERNATIONAL BUYERS A MINIMUM OF ONETHIRD OF THE NEW SHARES WILL GO TO THE INSTITUTIONAL AND INTERNATIONAL INVESTORS FROM A UTILITY'S STANDPOINT A NASTY REGULATOR IS YOUR WORST NIGHTMARE THIS KILLS ALL OTHER STORIES YOU CAN MAKE UP ABOUT WHY THIS IS A GREAT STOCK SAID STEVE DEXTER GLOBAL ANALYST OF TELECOM STOCKS FOR KEMPER INVESTMENT MANAGEMENT BT IS GOING TO BE CONTINUALLY FACED WITH HOSTILE AND HIGH REGULATION ON TOP OF INCREASING COMPETITION HE ADDED ONE EXAMPLE OF OFTEL'S REACH IS THE PRICE CAP UNDER WHICH BT WILL OPERATE FOR THE FOUR YEARS BEGINNING IN AUGUST EVERY TIME THE REGULATOR HAS LOOKED AT PRICE CAPS THE SCREW HAS BEEN TIGHTENED FURTHER BT CAN INCREASE PRICES BY 75 PERCENTAGE POINTS BELOW BRITAIN'S YEARONYEAR INFLATION RATE BUT WITH UK INFLATION AT AROUND 3 BT HAS BEEN FORCED TO CUT PRICES THAT CONSTRAINT IS ONE OF THE TIGHTEST IN THE WORLD SAID ANITA SPRINGER GLOBAL COMMUNICATIONS ANALYST AT US FUND MANAGER SCUDDER STEVENS & CLARK AS WELL AS OFTEL'S TOUGH SUPERVISION ANALYSTS SAY BT FACES INCREASING COMPETITION AS A RESULT OF CHANGES IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY UNTIL NOW THE LARGE COMPANIES SUCH AS BT AND AT&T HAVE BASED THEIR STRENGTH MAINLY ON A DOMINANCE OF THE DOMESTIC MARKET BUT NOW THE COMPANIES ARE GROWING INCREASINGLY ACTIVE IN EACH OTHER'S HOME MARKETS BT WHICH HAS ENJOYED CENTER STAGE FOR SUCH A LONG TIME IN BRITAIN ISN'T GOING TO FOR MUCH LONGER MR HICKEY AT HENDERSON CROSTHWAITE WARNED COMPETITION HAS LED BT TO OFFER DISCOUNTS AND OTHER INCENTIVES TO RETAIN CUSTOMERS BUT EVEN SO BT IS FAST LOSING OUT TO COMPETITORS ON PRICE IN MANY AREAS EVEN CABLE TELEVISION COMPANIES WHICH ARE ALLOWED TO OFFER TELEPHONE SERVICES IN THE UK BOAST LOWERPRICED SERVICE BT ITSELF IS SOBER IN ITS ASSESSMENT OF THE COMPETITION FROM RIVAL TELECOMMUNICATIONS LICENSEES MANY OF THE LICENSEES ARE LARGE COMPANIES WITH SUBSTANTIAL FINANCIAL RESOURCES AND THEY PROPOSE TO OPERATE IN MANY OF BT'S KEY MARKETS BT SAID IN A SEC FILING THAT ACCOMPANIES THE OFFERING THE LIKELY EFFECT ON BT OF THE SUCCESSFUL IMPLEMENTATION OF THEIR PLANS IS EXPECTED TO BE A REDUCTION IN MARKET SHARE WITH CONSEQUENTIAL EFFECTS ON REVENUE ANALYSTS SAY THE SOBER TONE OF THE SEC FILING CONTRASTS SHARPLY WITH THE ADVERTISING AND MEDIA HYPE THAT HAS SURROUNDED THE SHARE OFFERING LOOKING AT THE FILING AND LISTENING TO THE HYPE ON THE SHARE OFFER YOU'D THINK THAT THEY ARE TWO SEPARATE COMPANIES MR HICKEY ASSERTED UNTIL NOW BT HAS PROVED A WINNING BET FOR SHAREHOLDERS SINCE PRIVATIZATION STARTED IN 1984 BT SHARES HAVE OUTPERFORMED THE REST OF THE UK MARKET PROFITS MORE THAN TREBLED AND DIVIDENDS HAVE RISEN TO 144 PENCE A SHARE IN 1992 FROM 65 PENCE IN 1984 THIS YEAR ANALYSTS SEE DIVIDENDS OF 156 PENCE YESTERDAY BT CLOSED AT 4245 PENCE DOWN 15 PENCE 9307090092 930709 INTERNATIONAL WHEELS OF FORTUNE ROLLSROYCE DEALER TO OPEN IN MOSCOW NEW YORK BUSINESSMAN SEES GREAT POSSIBILITIES IN BEING THE ONLY SELLER IN RUSSIA BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CAPITALISM'S MOST EXTRAVAGANT SYMBOL IS COMING TO COMMUNISM'S FORMER HEADQUARTERS A ROLLSROYCE AUTO DEALERSHIP IS OPENING IN MOSCOW AT A PRICE TAG OF AS MUCH AS 250000 EACH ROLLSROYCES ARE OUT OF REACH FOR MOST IN ECONOMICALLY DEPRESSED RUSSIA BUT PETER TERIAN OWNER OF A ROLLSROYCE DEALERSHIP ON LONG ISLAND NY EXPECTS THE MOSCOW DEALERSHIP WHICH HE AND TWO PARTNERS PLAN TO OPEN NEXT THURSDAY TO MATCH THE 20 SALES HE RACKS UP IN NEW YORK EVERY YEAR AFTER ALL HIS NEW YORK COMPANY IS ONE OF ABOUT 50 ROLLSROYCE DEALERSHIPS IN THE US WHILE IN RUSSIA WE'LL BE THE ONLY DEALER IN A COUNTRY OF MORE THAN 250 MILLION PEOPLE SAYS MR TERIAN ADDING THAT IF THE MOSCOW DEALERSHIP SUCCEEDS HE MIGHT EXPAND TO ST PETERSBURG WITHIN A YEAR THE OPENING OF THE MOSCOW DEALERSHIP IS PART OF A DRIVE BY ROLLSROYCE MOTOR CARS A UNIT OF LONDONBASED VICKERS PLC TO EXPAND BEYOND THE SPUTTERING BRITISH MARKET WHERE IN THE FIRST HALF OF THIS YEAR SALES FELL TO 161 FROM 222 A YEAR AGO DESPITE THAT DROP WORLDWIDE SALES FOR ALL OF 1993 ARE EXPECTED TO EQUAL THE 1400 CARS SOLD LAST YEAR THANKS TO WHAT A SPOKESMAN CALLS LESS TRADITIONAL MARKETS SUCH AS CHINA HUNGARY AND THE PACIFIC RIM EXCLUDING JAPAN HEALTHY SALES IN THOSE MARKETS COULD ALSO HELP ROLLSROYCE POST A PROFIT IN 1993 FOR THE FIRST TIME IN YEARS AFTER TWO YEARS OF RESTRUCTURING DURING WHICH IT POSTED LOSSES OF 100 MILLION 1493 MILLION ROLLSROYCE NOW BOASTS A BREAKEVEN POINT OF 1300 CARS SOLD DOWN FROM 2600 MR TERIAN SAYS HE GOT THE IDEA TO OPEN THE DEALERSHIP WHEN HE SAW MOSCOW TEEMING WITH MERCEDESBENZES NOT ONLY ARE THERE A GROWING NUMBER OF NOUVEAUX RICHES ABLE TO AFFORD A ROLLSROYCE BUT THERE IS ALSO A BURGEONING UNDERWORLD ALREADY THERE IS TALK ONLY A RUMOR AT THIS STAGE OF AN ORDER FOR SEVEN ARMORPLATED CARS SAYS MR TERIAN WHO EXPLAINS THAT SOME OF RUSSIA'S NEWLY RICH HAVE CONCERNS ABOUT SECURITY TO BE SURE HIS DEALERSHIP WILL BE THE LATEST OF MANY TO ENTER THE MOSCOW MARKET AT AT TRADE MOTORS FOR INSTANCE AN 18MONTHOLD DEALERSHIP THAT SELLS US CARS SALES MANAGER SERGE IVANOV SAYS THAT FROM FIVE TO 15 VEHICLES A MONTH ARE LEAVING THE LOT MOSTLY JEEP CHEROKEES THEY ARE VERY BIG ROLLSROYCE NEVER HAS HAD TO SPEND MONEY TO GAIN NAME RECOGNITION AND WON'T IN MOSCOW SAYS GEORGES KELLER WHO OVERSEAS CORPORATE AFFAIRS IN EUROPE AND NOW RUSSIA PEOPLE IN SIBERIA AND THE AFRICAN BUSH KNOW THE ROLLSROYCE NAME HE SAYS IN MOSCOW A 1920SERA ROLLSROYCE HAS LONG BEEN ON DISPLAY IN THE UNLIKELIEST OF PLACES A LENIN MUSEUM IT BELONGED TO LENIN LEADER OF THE COMMUNIST REVOLUTION SAYS MR TERIAN THOUGH I THINK IT WAS A GIFT TO HIM 9307090091 930709 BUSINESS BRIEFS CFM INTERNATIONAL OWNED JOINTLY BY SNECMA OF FRANCE AND GENERAL ELECTRIC CO WAS AWARDED A 1871 MILLION CONTRACT FROM THE US AIR FORCE TO PROVIDE 59 CFM56 ENGINES FOR ITS KC135 TANKERS BRIDGESTONE CORP'S BRIDGESTONE/FIRESTONE INC UNIT WILL EXPAND ITS PASSENGER AND LIGHTTRUCK RADIALTIRE PLANT IN CUERNAVACA MEXICO US TRUST CORP ACQUIRED CAPITAL TRUST CO TERMS WEREN'T DISCLOSED CRAY RESEARCH INC RECEIVED AN ORDER FROM FORD MOTOR CO FOR A CRAY C916 SUPERCOMPUTER FOR USE IN DESIGN ANALYSIS TERMS WEREN'T DISCLOSED PHELPS DODGE CORP WORKERS AT THE CHINO MINES CO UNIT'S COPPER OPERATION NEAR SILVER CITY NM RATIFIED A RECENTLY NEGOTIATED THREEYEAR LABOR CONTRACT BOMBARDIER INC SAID ITS MEXICAN UNIT BOMBARDIER CONCARRIL RECEIVED A ONEYEAR 51 MILLION CONTRACT FROM MEXICO TRANSIT AUTHORITY TO REFURBISH 234 RUBBERTIRED SUBWAY CARS 9307090090 930709 BUSINESS BRIEF VALLEY FASHIONS CORP SECOND QUARTER TO INCLUDE A CHARGE OF 775 MILLION VALLEY FASHIONS CORP SAID IT WILL REPORT A SECONDQUARTER CHARGE OF 775 MILLION RELATED TO A WRITEOFF OF CERTAIN DEBT DISCOUNTS AND ADOPTION OF NEW ACCOUNTING POLICIES VALLEY FASHIONS IN NEW YORK IS A 95 OWNER OF WEST POINTPEPPERELL INC A TEXTILE CONCERN THE COMPANY SAID THE WRITEOFFS STEM FROM THE SALE OF 52 MILLION SHARES OF COMMON STOCK REPAYMENT OF ABOUT 62 MILLION OF ACCRUED INTEREST LOANS AND REFINANCING OF WEST POINTPEPPERRELL'S SENIOR CREDIT FACILITY THE COMPANY SAID IT HAS REFILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO REFLECT A CHANGE IN THE AMORTIZATION PERIOD RELATED TO EXCESS REORGANIZATION VALUE WHICH HAS BEEN REDUCED TO THREE YEARS FROM FIVE THE EXCESS REORGANIZATION VALUE OCCURRED IN CONNECTION WITH THE ADOPTION OF FRESH START REPORTING FOLLOWING THE COMPANY'S EMERGENCE FROM CHAPTER 11 BANKRUPTCY IN SEPTEMBER 1992 9307090089 930709 ROYAL HOME MOVIES ARE USED TO ILLUSTRATE USJAPAN RELATIONS AMERICANS FLOCK TO A SCREENING BUT THEIR QUESTIONS BETRAY A MORE PERSONAL INTEREST BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FROM THE BACK OF A PACKED THEATER WILLIAM B DAVIS BOOMS A QUESTION WHY DIDN'T SOMEBODY OFFER THE JAPANESE CROWN PRINCESS A HAND WHEN SHE GOT OUT OF THE CONVERTIBLE DURING HER POSTWEDDING PARADE WAS IT BECAUSE COMMONERS AREN'T SUPPOSED TO TOUCH ROYALTY I THINK SO REPLIES SEIICHI KONDO A JAPANESE EMBASSY OFFICIAL WHO IS FIELDING QUESTIONS AFTER A SCREENING OF A PLAYBYPLAY VIDEO OF JAPAN'S RECENT ROYAL WEDDING THE VIDEO RESEMBLES A BAD HOME MOVIE AND IT'S BEEN A MONTH SINCE THE WEDDING BUT A COUPLE HUNDRED AMERICANS INCLUDING US GOVERNMENT OFFICIALS STUDENTS AND EXECUTIVES STILL JAMMED A THEATER AT THE JAPANESE EMBASSY'S INFORMATION AND CULTURE CENTER TO CATCH THE SHOW I CALLED IMMEDIATELY FOR A RESERVATION GUSHES MR DAVIS CHAIRMAN OF WISDOM INC A LOCAL FIRM THAT ADVISES COMPANIES ON DOING BUSINESS OVERSEAS MR KONDO IS HERE TO MAKE THE POINT THAT THE POSITIVE AMERICAN RESPONSE TO THE ROYAL WEDDING HELPS USJAPANESE RELATIONS AND THAT THE NUPTIAL HAS BOOSTED JAPANESE PUBLIC CONFIDENCE BUT IN A POSTSCREENING Q&A THE AUDIENCE WANTS TO KNOW MORE PERSONAL STUFF FOR INSTANCE WHY WAS THE CAR BRITISH AND NOT JAPANESE WITHOUT SKIPPING A BEAT MR KONDO RESPONDS IF YOU CHOSE TOYOTA NISSAN PEOPLE WILL BE ANGRY DID THE ROYAL COUPLE HAVE A HONEYMOON THEIR FIRST TRIP WAS TO A SHRINE IF YOU WOULD LIKE TO CALL IT HONEYMOON YES IT IS SAYS MR KONDO EVER THE DIPLOMAT WHAT DO THEY DO WITH THEMSELVES ASKS AN ELDERLY LADY TO GIGGLES MR KONDO REPORTS THAT CROWN PRINCE NARUHITO WROTE HIS OXFORD THESIS ON THAMES RIVER TRANSPORTATION IN THE MIDDLE AGES CROWN PRINCESS MASAKO IS GOOD IN SOFTBALL HE POINTS OUT AND THE TWO ENJOY MOUNTAIN CLIMBING OH A MATCH MADE IN HEAVEN CHUCKLES VALERIE BULLERDICK AN OFFICE ASSISTANT AT THE STATE DEPARTMENT SHE WANTS TO KNOW IF JAPAN'S ROYALTY CAN AVERT THE FATE THAT HAS BEFALLEN SO MANY BRITISH ROYAL COUPLES MR KONDO SKIRTS THAT ONE AN INQUIRY BY LIZ ROMERO A GEORGE WASHINGTON UNIVERSITY STUDENT FARES NO BETTER SHE WONDERS IF THE CROWN PRINCESS HAD TO TAKE A MEDICAL EXAM ATTESTING TO VIRGINITY AS PRINCESS DIANA ALLEGEDLY HAD TO DO BEFORE HER WEDDING MR KONDO'S RESPONSE I DON'T KNOW THE CROWN PRINCESS IS AS MUCH A DRAW FOR THE AMERICAN AUDIENCE AS HILLARY RODHAM CLINTON IS FOR THE JAPANESE SO NATURALLY THERE IS SPECULATION WILL THE TWO MEET DURING THE TOKYO SUMMIT OF THE GROUP OF SEVEN INDUSTRIAL LEADERS I'M EXPECTING TO HEAR A REPORT FROM TOKYO ON HOW THE FIRST MEETING WITH MASAKO AND HILLARY WENT ASSURES MR KONDO 9307090088 930709 CORRECTIONS & AMPLIFICATIONS A MEMO BY INTERNATIONAL BUSINESS MACHINES CORP CHAIRMAN LOUIS V GERSTNER JR DIDN'T CITE THE COMPANY'S SALES PEOPLE AS A KEY TO IBM'S PROBLEMS AS AN ARTICLE ON WEDNESDAY'S MARKETPLACE PAGE INCORRECTLY SUGGESTED THE MEMO SAID THAT THE COMPANY'S SALES STRUCTURE NOT ITS SALES FORCE DOESN'T ALWAYS PERMIT US TO SERVE OUR CUSTOMER IN THE MOST EFFICIENT AND EFFECTIVE WAY DUPONT CO'S RECENTLY COMPLETED ACQUISITION OF THE NYLON BUSINESS OF BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC WAS CARRIED OUT UNDER A CONSENT ORDER FROM THE US FEDERAL TRADE COMMISSION UNDER THE ORDER ICI MUST TRANSFER TO A THIRD PARTY PART OF ITS DOWNSTREAM ACRYLICSPOLYMER PRODUCTION IN THE US AN ARTICLE LAST FRIDAY FAILED TO INCLUDE THAT REQUIREMENT ROBERT ZUCCARO A NEW YORK MONEY MANAGER EXPECTS SCIMED LIFE SYSTEMS INC TO EARN 450 A SHARE FOR THE FISCAL YEAR ENDING IN FEBRUARY UP FROM 337 A SHARE LAST YEAR AN ARTICLE YESTERDAY INCORRECTLY SAID MR ZUCCARO EXPECTED THE COMPANY TO EARN 330 A SHARE FOR FISCAL 1995 9307090087 930709 AUDIO/VIDEO AFFILIATES SALES DAYTON OHIO AUDIO/VIDEO AFFILIATES INC SAID JUNE SAMESTORE SALES ROSE 11 TO 158 MILLION FROM 141 MILLION A YEAR AGO TOTAL JUNE MERCHANDISE SALES AT THE ELECTRONICS PRODUCTS CONCERN ROSE 29 TO 187 MILLION FROM 146 MILLION 9307090086 930709 WHO'S NEWS SUBARU'S MULLER TO BE PRESIDENT LAYOFFS PLANNED BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHERRY HILL NJ WITH ITS SALES STALLED SUBARU OF AMERICA INC NAMED A NEW PRESIDENT AND ANNOUNCED PLANS TO LAY OFF SOME OF ITS EMPLOYEES GEORGE MULLER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE AUTO MAKER EFFECTIVE IMMEDIATELY MR MULLER 44 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT WITH SOME OF THE RESPONSIBILITIES OF CHIEF OPERATING OFFICER THE POSITION OF PRESIDENT HAD BEEN VACANT SINCE THOMAS GIBSON RESIGNED A YEAR AGO CHARLES CF WORRELL WHO SHARED THE RESPONSIBILITY OF CHIEF OPERATING OFFICER WITH MR MULLER SAID PREVIOUSLY THAT HE WILL RETIRE LATER THIS SUMMER MR MULLER'S TOP PRIORITIES WILL BE TO RESTORE SUBARU A UNIT OF FUJI HEAVY INDUSTRIES LTD TO PROFITABILITY AND SHARPEN ITS MUDDIED IMAGE THE COMPANY SAID IN A MOVE TO CUT COSTS SUBARU WILL REDUCE SALES AND MARKETING PAYROLLS THROUGH LAYOFFS AND ATTRITION BEGINNING IN THE NEXT FEW WEEKS THE AUTO MAKER DIDN'T DISCLOSE THE NUMBER OF EMPLOYEES IT PLANS TO SHAVE FROM ITS WORK FORCE SUBARU HAS A TOTAL OF 823 EMPLOYEES IN THE US SUBARU ALSO SAID IT AIMS TO RECAPTURE THE LUSTER IT ENJOYED IN THE EARLY AND MID1980S WHEN ITS INEXPENSIVE ALLWHEELDRIVE SUBCOMPACTS MADE IT AN INDUSTRY DARLING IN 1986 SUBARU SALES IN THE US REACHED 183242 VEHICLES BUT IN 1989 THE COMPANY LAUNCHED A NEW LINE OF LARGER MORE EXPENSIVE VEHICLES UNDER THE LEGACY NAME AND TRIED TO REPOSITION ITSELF AS AN ALTERNATIVE FOR WELLHEELED BUYERS THE UPMARKET STRATEGY DIDN'T WORK AND BY 1992 SUBARU'S US SALES HAD FALLEN TO 104800 VEHICLES NOW SUBARU EXECUTIVES SAY THEY WANT TO REESTABLISH THE COMPANY AS A NICHE MAKER OF FRONTWHEEL AND ALLWHEELDRIVE VEHICLES WE'VE GOTTEN SIDETRACKED OVER THE PAST FEW YEARS AND HAVE TRIED TO BE ALL THINGS TO ALL CONSUMERS MR MULLER SAID IN A STATEMENT IT'S TIME WE REFOCUS ON THE CORE STRENGTHS OF OUR PRODUCTS SUBARU WAS HOPING TO WIN BACK BUYERS WITH ITS IMPREZA COMPACT CAR WHICH WAS INTRODUCED IN MARCH BUT THE IMPREZA HAS BEEN A BIG DISAPPOINTMENT ALTOGETHER SUBARU HAS SOLD 17328 VEHICLES SO FAR THIS YEAR DOWN 37 FROM A YEAR EARLIER SLOW SALES HAVE LEFT THE COMPANY WITH BULGING INVENTORIES OF UNSOLD CARS AS OF MAY 31 SUBARU HAD A 297DAY SUPPLY OF UNSOLD VEHICLES ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL THE IDEAL RANGE IS 60 TO 65 DAYS OUR MESSAGE TO CONSUMERS BECAME FRAGMENTED AND UNCLEAR MR MULLER SAID WE'VE LOST OUR IDENTITY AND ARE NOT SATISFIED WITH WHAT WE'VE BECOME 9307090085 930709 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY HOW TO GET THE MOST OUT OF YOUR BENEFIT PLAN BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL HOW WOULD YOU LIKE TO USE MEDICAL EXPENSES AND PAYMENTS FOR BABYSITTERS TO LOWER YOUR TAX BILL OR SET ASIDE THOUSANDS OF DOLLARS A YEAR FOR RETIREMENT WITHOUT BEING TAXED ON THE MONEY OR ANY INCOME IT GENERATES FOR YEARS TO COME SOUND LIKE SOME SORT OF TAX DODGE IT IS BUT IT'S PERFECTLY LEGAL IT'S ALL PART OF YOUR EMPLOYERSPONSORED BENEFIT PLAN AND THERE'S USUALLY MORE INCLUDING FREE OR BARGAIN BASEMENT TERMLIFE INSURANCE AND GROUP RATES FOR MEDICAL COVERAGE AND DISABILITY INSURANCE INDEED EMPLOYEE BENEFIT PLANS ARE THE MOST VALUABLE SOURCE OF TAX BREAKS AND SAVINGS OPPORTUNITIES MOST PEOPLE HAVE PROVIDING ALL OF THEIR MEDICAL COVERAGE LIFE INSURANCE AND RETIREMENT SAVINGS APART FROM SOCIAL SECURITY FOR MOST EMPLOYEES THE TAX SAVINGS IN BENEFIT PLANS EXCEED THE DEDUCTIONS THEY'RE TAKING ON THEIR INCOME TAX RETURNS SAYS LANCE TANE A PARTNER WITH KWASHA LIPTON A BENEFITS CONSULTING FIRM IN FORT LEE NJ NOT MAKING THE RIGHT CHOICES WITH YOUR BENEFITS IS LIKE NOT CASHING A COUPLE OF YOUR PAYCHECKS BUT A LOT OF EMPLOYEES DON'T MAKE THE RIGHT CHOICES BECAUSE THEY DON'T TAKE TIME TO FIND OUT WHAT THEY'VE GOT AND HOW TO MAKE THE BEST USE OF THEIR OPTIONS BENEFIT PROGRAMS TODAY ARE A LOT LIKE VCRS SAYS MR TANE THEY'VE BEEN ENGINEERED WITH A LOT OF VALUEADDED FEATURES BUT MOST USERS DON'T GET THE BENEFITS BECAUSE THEY DON'T TAKE TIME TO READ THE MANUAL MICHAEL HAYES AN ACTUARY WITH HEWITT ASSOCIATES A BENEFITS CONSULTING FIRM IN LINCOLNSHIRE ILL AGREES IT MAY FEEL LIKE DOING YOUR INCOME TAXES HE SAYS BUT IT'S WORTH THE TIME PAYING ATTENTION TO YOUR BENEFIT PLAN IS MORE CRUCIAL THAN EVER THESE DAYS BECAUSE COSTCONSCIOUS EMPLOYERS ARE MAKING BENEFITS HARDER TO OBTAIN INCREASINGLY THEY ARE SHIFTING THE COSTS TO EMPLOYEES AND TO TAXPAYERS TRADITIONAL EMPLOYERFUNDED PENSION PLANS FOR INSTANCE ARE BEING REPLACED WITH SAVINGS PLANS SUCH AS 401KS THAT EMPLOYEES MUST CONTRIBUTE TO THEMSELVES IN ORDER TO BUILD A RETIREMENT NEST EGG MEANWHILE EMPLOYERS ARE RAISING DEDUCTIBLES AND COPAYMENTS FOR MEDICAL COVERAGE TIGHTENING ELIGIBILITY REQUIREMENTS AND AGGRESSIVELY DENYING CLAIMS OF EMPLOYEES WHO FAIL TO FOLLOW THE PROCEDURES SPELLED OUT IN THE FINE PRINT OF THEIR MEDICAL PLANS EMPLOYERS ARE ALSO PUTTING MORE OF THE RESPONSIBILITY ON EMPLOYEES THE FLEXIBLE BENEFITS PLANS NOW OFFERED BY MORE THAN HALF OF LARGE COMPANIES GIVE EACH EMPLOYEE A SET AMOUNT OF CREDITS THAT CAN BE USED FOR MEDICAL AND DENTAL COVERAGE LIFE AND DISABILITY INSURANCE AND A RANGE OF OTHER BENEFITS THAT OFTEN INCLUDES EXTRA VACATION DAYS UNPAID LEAVE AND PARTIAL REIMBURSEMENT FOR HEALTHCLUB MEMBERSHIPS IT'S UP TO THE EMPLOYEE TO DECIDE HOW TO ALLOCATE THE CREDITS FOR EXAMPLE A YOUNG EMPLOYEE MAY BE BETTER OFF FORGOING LIFE INSURANCE AND INSTEAD CHOOSING DISABILITY COVERAGE IF A SINGLE PERSON DIES WITH A LOT OF LIFE INSURANCE ALL THEY'RE GOING TO HAVE IS A RICH CAT SAYS MR TANE BUT IF THEY GOT HIT BY A TRUCK AND DON'T HAVE DISABILITY COVERAGE THEY'LL BE EATING CAT FOOD SIMILARLY MANY BENEFIT PLANS MAKE IT POSSIBLE FOR EMPLOYEES TO HAVE PRETAX DOLLARS WITHHELD FROM THEIR PAYCHECKS TO PAY FOR UNREIMBURSED MEDICAL AND CHILDCARE EXPENSES THE SAVINGS WHICH ARE SUBSIDIZED BY TAXPAYERS CAN BE A SUBSTANTIAL BOON TO EMPLOYEES BUT IT IS UP TO EMPLOYEES TO ENROLL IN THE PROGRAMS AND DECIDE HOW MUCH TO HAVE WITHHELD WITHIN THE LIMITS ESTABLISHED BY COMPANY AND GOVERNMENT RULES EMPLOYEES ARE ALSO INCREASINGLY HAVING TO BECOME THEIR OWN PENSION MANAGERS UNLIKE TRADITIONAL PENSION PLANS WHICH WERE MANAGED BY INVESTMENT PROFESSIONALS AND GUARANTEED A PREDETERMINED BENEFIT AT RETIREMENT THE NEWER 401K PLANS AND SIMILAR ARRANGEMENTS REQUIRE EMPLOYEES TO MAKE THEIR OWN DECISIONS ABOUT HOW THE MONEY IS INVESTED AND THEIR RETIREMENT SECURITY HINGES ON THE QUALITY OF THE DECISIONS THEY MAKE COMPLICATING THE EMPLOYEE'S JOB ARE ALL THE REGULATORY AND LEGAL CHANGES TAKING PLACE THIS YEAR MANY EMPLOYERS ARE BEEFING UP THE INVESTMENT CHOICES IN RETIREMENT SAVINGS PLANS TO SATISFY NEW DEPARTMENT OF LABOR GUIDELINES THAT ENCOURAGE EMPLOYERS TO PROVIDE A MINIMUM OF FUND SELECTIONS EMPLOYEES MAY NOW HAVE MORE INVESTMENT OPTIONS TO CHOOSE FROM AND THANKS TO A NEW ACCOUNTING REGULATION THAT REQUIRES EMPLOYERS TO REPORT FUTURE RETIREE MEDICAL COSTS ON THEIR CURRENT BALANCE SHEETS HUNDREDS OF COMPANIES ARE ABANDONING MEDICAL COVERAGE FOR RETIREES CONSEQUENTLY PEOPLE APPROACHING RETIREMENT MAY HAVE TO START SAVING MORE MONEY TO PAY FOR THEIR OWN HEALTH COVERAGE IF THEY RETIRE BEFORE AGE 65 WHEN MEDICARE KICKS IN DWARFING ALL OTHER CHANGES HOWEVER ARE THE SWEEPING REVISIONS IN HEALTH PLANS THAT ARE EXPECTED TO BE ANNOUNCED BY THE CLINTON ADMINISTRATION THIS YEAR ANTICIPATING AN INCREASE IN THEIR OWN COSTS MOST EMPLOYERS ARE DRAFTING CHANGES THAT WILL SHIFT MORE MEDICAL COSTS TO EMPLOYEES AND LIMIT COVERAGE STARTING IN JANUARY EMPLOYEES MAY WANT TO GET PHYSICALS DENTAL WORK AND OTHER MEDICAL TREATMENTS TAKEN CARE OF NOW ANOTHER GOOD REASON FOR EMPLOYEES TO GET IN THE DRIVER'S SEAT WHEN IT COMES TO THEIR BENEFIT PLANS IS THAT THEY CAN'T ALWAYS COUNT ON THEIR EMPLOYER TO TELL THEM WHAT'S BEST FOR THEM OVERWORKED HUMAN RESOURCE STAFFS ARE ALREADY STRUGGLING TO JUGGLE ALL THE CHANGES TAKING PLACE AND MAY NOT HAVE THE TIME OR EXPERTISE TO EXPLAIN ALL THE OPTIONS IN A PROGRAM AT MANY COMPANIES EMPLOYEE BENEFITS ARE LIKE BURIED TREASURE THE COMPANY MAY GIVE YOU A MAP BUT YOU HAVE TO DIG TO GET IT SAYS MR TANE SEE RELATED STORIES BENEFIT PLANS THROUGH THE AGES AND TAKING CHARGE OF YOUR RETIREMENT PLAN AND BUILDING A SOLID NEST EGG WSJ JULY 5 1993 9307090084 930709 GLENFED UNIT BEGINS EXCHANGE GLENDALE CALIF GLENFED INC SAID ITS GLENDALE FEDERAL BANK UNIT BEGAN AN EXCHANGE OFFER FOR GLENFED'S 775 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2001 AS PART OF A PLAN TO RECAPITALIZE THE WEAKENED THRIFT THE TERMS CALL FOR SWAPPING EACH 1000 PRINCIPAL AMOUNT OF DEBENTURES FOR 7750 IN CASH 49 SHARES OF GLENDALE COMMON STOCK AND 1668 RIGHTS TO PURCHASE ADDITIONAL SHARES OF THE STOCK UNDER A PREVIOUSLY ANNOUNCED RIGHTS OFFERING DEBENTURES OUTSTANDING HAVE A FACE AMOUNT OF ABOUT 60 MILLION 9307090083 930709 US CAR FIRMS' STOCKS GET HOT ON WALL STREET GM FORD CHRYSLER BENEFIT FROM JUNE SALES GAINS STRONG PROFIT FORECASTS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP STOCK HIT A NEW 52WEEK HIGH LEADING A SURGE OF THE BIG THREE AUTO MAKERS' SHARES AS INVESTORS GAMBLED THAT CARS WILL BE HOT EVEN IF THE OVERALL ECONOMY'S NOT GM FORD MOTOR CO AND CHRYSLER CORP SHARES LED A BROADER MARKET REBOUND YESTERDAY AFTER A WEEK THAT SAW STRONG JUNE US AUTO SALES ROBUST THIRDQUARTER PRODUCTION SCHEDULES AND PREDICTIONS OF HEALTHY SECONDQUARTER EARNINGS THE AUTO INDUSTRY SEEMS ALMOST DIVORCED FROM THE GENERAL ECONOMY SAID DAVID HEALY AN AUTO ANALYST WITH SG WARBURG WHO'S CONSIDERING REVISING UPWARD HIS ESTIMATES OF 1993 VEHICLE SALES IN LIGHT OF JUNE'S STRONG SALES JUNE'S RESULTS REPORTED EARLIER THIS WEEK WERE THE STRONGEST FOR A MONTH SINCE 1990 BULLISH SECONDQUARTER EARNINGS EXPECTATIONS ARE IN MARKED CONTRAST TO THE ECONOMY AS A WHOLE ADDED WENDY NEEDHAM AN AUTO ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO THERE ARE GOING TO BE A LOT OF EARNINGS SHORTFALLS AND DISAPPOINTMENTS OUT THERE SAID MS NEEDHAM BUT GM FORD AND CHRYSLER WILL ALL HAVE DOUBLEDIGIT EARNINGS INCREASES THE BIG THREE COULD POST COMBINED EARNINGS OF CLOSE TO 2 BILLION FOR THE QUARTER ANALYSTS SAID A YEAR EARLIER A BIG LOSS AT GM MORE THAN OFFSET SLIMMER PROFITS AT FORD AND CHRYSLER VIEWS LIKE THAT PUSHED GM COMMON SHARES TO 46875 UP 225 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WITH INVESTORS GAINING CONFIDENCE IN THE AUTO MAKER'S EFFORTS TO SLASH COSTS IN ITS TROUBLED NORTH AMERICAN OPERATIONS FORD JUMPED 175 TO 5125 AND CHRYSLER ROSE 1625 TO 47125 IN BIG BOARD TRADING WALL STREET ISN'T ALONE IN NOTICING DETROIT'S APPARENT GOOD FORTUNE FOLLOWING THREE YEARS THAT SAW RECORD RED INK AND PAINFUL RESTRUCTURING LEADERS OF THE UNITED AUTO WORKERS UNION AND THE INTERNATIONAL UNION OF ELECTRICAL WORKERS HAVE BEGUN ARGUING IN NEGOTIATIONS THIS WEEK THAT WORKERS DESERVE BIG RAISES IN NEW NATIONAL LABOR AGREEMENTS THIS FALL AFTER TWO WEEKS OF PRELIMINARIES IN TALKS FOR A NEW LABOR CONTRACT THE UAW STARTED THE FORMAL PRESENTATION OF ITS DEMANDS TO FORD YESTERDAY WE ARE ASKING FOR A SUBSTANTIAL WAGE INCREASE SAID ERNEST LOFTON A UAW VICE PRESIDENT THOUGH HE DECLINED TO OFFER SPECIFICS HE DID SUGGEST THAT FORD MIGHT BE THE BEST PLACE FOR THE UNION TO TRY TO SET A PATTERN FOR THE INDUSTRY BECAUSE FORD IS IN MUCH BETTER FINANCIAL CONDITION THAN GM OR CHRYSLER EVEN AT GM LABOR IS NOTICING SIGNS OF IMPROVEMENT WE FEEL THE CORPORATION IS HEADING IN THE RIGHT DIRECTION SAID WILLIAM BYWATER PRESIDENT OF THE IUE WHICH REPRESENTS 21000 GM WORKERS THE IUE OPENED TALKS WITH GM WEDNESDAY ARGUING THAT THINGS ARE RETURNING TO NORMAL AT GM IUE OFFICIALS SAID THAT WE THINK WE CAN MAKE THE CASE FOR WAGE INCREASES IN EACH YEAR OF THE AGREEMENT THE AUTO INDUSTRY'S UPTURN SHOULD BE CLEAR IN SECONDQUARTER EARNINGS REPORTS SCHEDULED TO COME OUT THIS MONTH ANALYSTS SAID COLLECTIVELY THE BIG THREE COULD POST COMBINED EARNINGS OF CLOSE TO 2 BILLION FOR THE QUARTER A YEAR AGO A BIG LOSS AT GM MORE THAN OFFSET SLIMMER PROFITS AT FORD AND CHRYSLER ANALYSTS ESTIMATED THAT GM EARNED MORE THAN 800 MILLION IN THE JUSTENDED QUARTER OR ROUGHLY 85 CENTS A SHARE REVERSING A LOSS OF 703 MILLION OR 118 A SHARE A YEAR AGO EARNINGS AT FORD WILL COME IN AT ABOUT 640 MILLION OR 130 A SHARE ANALYSTS SAID ALMOST DOUBLE THE YEAREARLIER 387 MILLION OR 70 CENTS A SHARE BY FAR THE BIGGEST PERCENTAGE INCREASE IN PERSHARE EARNINGS WILL COME FROM CHRYSLER ANALYSTS SAID THE AUTO MAKER IS ROLLING IN PROFITS FROM ITS WELLRECEIVED LINE OF NEW LH CARS AND HAS NO EXPOSURE TO PLUNGING EUROPEAN SALES WHICH ARE PUMMELING FORD AND GM CHRYSLER IS EXPECTED TO EARN 150 A SHARE OR ROUGHLY 550 MILLION THAT'S ALMOST TRIPLE THE 54 CENTS A SHARE OR 178 MILLION THE NO 3 US AUTO MAKER EARNED IN THE YEAREARLIER QUARTER THE AUTO INDUSTRY IS THE ONLY PLACE THAT'S REALLY STRONG IN THE ECONOMY RIGHT NOW SAID STEPHEN GIRSKY OF PAINEWEBBER INC WHO SEES PRODUCTION SCHEDULES FOR THE THIRD QUARTER AS EVIDENCE THE STRENGTH IS LIKELY TO CONTINUE INTO THE SECOND HALF TO BE SURE THERE ARE DARK CLOUDS ON THE HORIZON EUROPEAN AUTO SALES IN JUNE WERE THE WORST IN SEVERAL YEARS WHAT'S MORE SAID RONALD GLANTZ AN ANALYST WITH DEAN WITTER REYNOLDS INC A PRICE WAR HAS BROKEN OUT IN GERMANY THAT WILL FURTHER DEFLATE PROFITS AT FORD AND GM WHICH HAVE BIG EUROPEAN OPERATIONS MOREOVER WALL STREET TRADITIONALLY GETS JITTERY WHEN THE BIG THREE START THEIR TRIENNIAL CONTRACT TALKS WITH THE UAW BECAUSE OF THE POSSIBILITY THAT STRIKES COULD CUT INTO PRODUCTION BUT SOME INVESTORS WERE ENCOURAGED LATE LAST MONTH WHEN GM ANNOUNCED THAT IT WAS SHIFTING SOME SMALLCAR PRODUCTION FROM MEXICO TO A UAWREPRESENTED FACTORY IN MICHIGAN ON THE EVE OF LAUNCHING ITS TALKS WITH THE UAW THE ANNOUNCEMENT WHICH WAS HAILED BY THE UNION WAS SEEN AS ONE OF SEVERAL ENCOURAGING SIGNS OF INCREASED LABORMANAGEMENT COOPERATION 9307090082 930709 INSURERS IN TOKYO FACE DEMONSTRATIONS OVER TAIWAN POLICIES BIG JAPANESE LIFE INSURERS BALK AT PAYING OFF ON CONTRACTS SOLD TO PEOPLE BEFORE 1945 BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN THROUGHOUT THE 1930S IT WAS COMMON FOR PROSPEROUS TAIWANESE LIVING UNDER JAPANESE COLONIAL RULE TO TAKE OUT LIFE INSURANCE POLICIES WRITTEN BY GIANT COMPANIES BACK IN TOKYO SO IT WAS FOR TWO GENERATIONS OF HIRASHIMAS AS THE FAMILY OF CHEN CHINGHSIANG WAS KNOWN THEN THEY DUTIFULLY PAID THEIR PREMIUMS TO TEIKOKU LIFE INSURANCE CO FOR 10 YEARS BUT IN 1951 WITH TAIWAN'S JAPANESE RULERS GONE IT WOULD HAVE BEEN CONSIDERED TREASONOUS BY THE KUOMINTANG GOVERNMENT TO MAKE A CLAIM WHEN MS CHEN'S GRANDFATHER DIED COME 1975 WHEN MS CHEN'S FATHER PASSED AWAY SHE DECIDED TO COLLECT ON THE POLICIES THAT HAD BEEN GATHERING DUST FOR 30 YEARS SHE TRAVELED TO JAPAN TO VISIT ASAHI LIFE INSURANCE CO THE POSTWAR SUCCESSOR TO TEIKOKU LIFE ASKING FOR PAYMENT THE RESPONSE YOU GO HOME AND WE'LL WRITE YOU A LETTER WHEN THE LETTER ARRIVED IT WAS THE SAME ONE THAT HUNDREDS OF TAIWANESE FAMILIES HAVE RECEIVED OVER THE YEARS FROM ASAHI AND OTHER JAPANESE INSURANCE COMPANIES THE INSURER REFUSED TO PAY NEARLY 20 YEARS LATER THE BITTERNESS OF THAT REJECTION HAS BUILT TO A FURY THAT WILL BRING A SMALL GROUP OF AGING TAIWANESE TO DEMONSTRATE ON THE STREETS OF TOKYO I ONCE RESPECTED JAPANESE EDUCATION AND CULTURE SAYS MS CHEN NOW 67 YEARS OLD AND STILL CARRYING HERSELF AS A MEMBER OF THE ISLAND'S PREWAR GENTRY BUT NOW I'VE EXPERIENCED FRAUD DISHONESTY AND DISLOYALTY I FEEL BETRAYED ASIANS OF VARIOUS NATIONALITIES OFTEN VENT THEIR ANGER AT JAPAN FOR THE LEGACY OF ITS WARTIME AND COLONIAL BEHAVIOR MONETARY CLAIMS AGAINST JAPAN ABOUND FOR WARTIME BONDS AND SAVINGS ACCOUNTS INSURANCE POLICIES AND BRUTAL TREATMENT OF WOMEN FORCED INTO PROSTITUTION AS COMFORT WOMEN FOR JAPANESE SOLDIERS BUT SUCH ANGER IS RARE AMONG TAIWANESE OF ALL THE ASIAN PEOPLES ON WHICH JAPAN LEFT ITS MARK DURING THE FIRST DECADES OF THIS CENTURY THE TAIWANESE HAVE ALWAYS MAINTAINED THE DEEPEST WELLSPRINGS OF GOODWILL MOST OLDER TAIWANESE FONDLY REMEMBER THE 50 YEARS OF JAPANESE RULE THAT ENDED IN 1945 AND MANY LEADING CITIZENS INCLUDING PRESIDENT LEE TENGHUI WERE EDUCATED UNDER THE JAPANESE INDEED MANY OF THEM OFTEN ARE MORE COMFORTABLE SPEAKING JAPANESE THAN MANDARIN SO IT IS STARTLING TO HEAR MATRONS SUCH AS MS CHEN WHO SOMETIMES LAPSE INTO JAPANESE WHILE TALKING TO A FOREIGNER SPEAK VENOMOUSLY OF THEIR FORMER COLONIAL RULERS YOU SHAKE YOUR HEAD TO SEE HOW THE JAPANESE CAN SQUANDER THE GOODWILL THAT EXISTS FOR THEM IN TAIWAN SAYS JAMES PC LIU A LEGISLATIVE LOBBYIST FLUENT IN JAPANESE WHO HAS VOLUNTEERED TO ASSIST THE POLICYHOLDERS IT WOULDN'T COST MUCH TO SET THINGS RIGHT ONCE IT WOULD HAVE COST ALMOST NOTHING MOST OF THE PREWAR INSURANCE POLICIES AGREED TO PAY THE BENEFICIARIES 1000 YEN A SUM THAT IN THOSE DAYS WOULD HAVE BOUGHT A COMFORTABLE HOUSE IN TAIWAN MS CHEN SAYS NOW THAT EQUATES TO US920 BARELY ENOUGH TO BUY TWO CUPS OF COFFEE AT A FIVESTAR HOTEL IN TAIPEI SO THE TAIWANESE POLICYHOLDERS ARE ASKING FOR CONSIDERABLY MORE ROUGHLY 15000 TIMES MORE AT CURRENT EXCHANGE RATES MS CHEN WHO HEADS AN ORGANIZATION REPRESENTING ABOUT 300 POLICYHOLDERS SAYS HER GROUP IS DEMANDING PAYMENTS EQUIVALENT TO US149000 ON EACH LIFE INSURANCE POLICY ASAHI LIFE RECENTLY HAS BEEN OFFERING TO PAY OFF AT THE POLICIES' ORIGINAL FACE VALUE A PROPOSAL THAT HAS BEEN REJECTED OUT OF HAND ABOUT 25 POLICYHOLDERS ARE PLANNING TO MAKE THE TRIP TO TOKYO TO DEMONSTRATE OUTSIDE ASAHI LIFE AS WELL AS THE TWO OTHER INSURANCE COMPANIES CHIYODA LIFE INSURANCE CO AND MITSUI LIFE INSURANCE CO THEY WILL ALSO TAKE THEIR GRIEVANCES TO THE STREETS OF TOKYO'S GINZA DISTRICT THEY SAY AND VISIT THE JAPANESE PARLIAMENT ASAHI LIFE SAYS IT HAS RECEIVED FOUR REQUESTS FOR PAYMENT ON PREWAR POLICIES SINCE 1988 FROM TAIWAN AS WELL AS TWO FROM SOUTH KOREA ONE FROM NORTH KOREA AND ONE FROM CHINA IT DOESN'T PROVIDE FIGURES ON EARLIER CLAIMS THE COMPANY SAYS IT IS WAITING TO SEE THE ISSUE RESOLVED AT THE GOVERNMENTAL LEVEL BECAUSE JAPAN AND TAIWAN HAVEN'T DECIDED IN A CONCRETE WAY HOW TO HANDLE PROPERTIES AND CLAIMS NOW WE PAY THE AMOUNT STATED IN THE INSURANCE POLICIES THE COMPANY SAID IN A WRITTEN RESPONSE TO QUESTIONS ON THE ISSUE IN THE EVENT THAT A CONCRETE WAY OF HANDLING THESE ISSUES IS DECIDED THEN WE WOULD ADJUST TO THAT THERE MAY BE LESS THAN MEETS THE EYE TO THAT POSITION HOWEVER A GOVERNMENT OFFICIAL IN TAIWAN FAMILIAR WITH THE REPARATIONS ISSUE SAYS THE JAPANESE GOVERNMENT TAKES THE POSITION THAT THE INSURANCE POLICIES ARE A MATTER BETWEEN A PRIVATE COMPANY AND ITS CUSTOMERS THERE IS NOTHING IN JAPANESE LAW TO COVER THEM HE SAYS THE JAPANESE GOVERNMENT RECENTLY HAS FOCUSED ON OTHER REPARATIONS ISSUES THE OFFICIAL SAYS BEFORE THE GOVERNMENT OF PRIME MINISTER KIICHI MIYAZAWA LOST A NOCONFIDENCE VOTE EARLIER THIS MONTH IT WAS MOVING TO ANNOUNCE A SOLUTION TO ASIAN CLAIMS ON MILITARY POSTAL ACCOUNTS FROM THE WARTIME ERA 9307090081 930709 INTERNATIONAL BRIEF NOMURA SECURITIES CO FIRM IS ORDERED TO PAY 417 MILLION TAX CHARGE NOMURA SECURITIES CO MUST PAY AN EXTRAORDINARY TAX CHARGE OF ABOUT 45 BILLION YEN 417 MILLION FOR STOCK SALES THAT JAPANESE AUTHORITIES DETERMINED WEREN'T MADE AT FAIR MARKET PRICE COMPANY OFFICIALS SAID JAPAN'S FAIR TRADE COMMISSION DETERMINED IN 1991 THAT TOKYOBASED NOMURA INFRINGED THE COUNTRY'S ANTIMONOPOLY LAW BY TRANSFERRING SOME ITS OWN SHARES AT FACE VALUE FROM AN AFFILIATED COMPANY TO MAJOR STOCKHOLDERS NOMURA ALSO HAD INSTRUCTED THE STOCKHOLDERS NOT TO SELL THE SHARES WITHOUT ITS CONSENT AND HELD THE RIGHT TO REPURCHASE THE STOCKS AT A FACE VALUE OF 500 YEN THIS ACTION THE COMMISSION DECIDED VIOLATED LAWS LIMITING A FINANCIAL INSTITUTION FROM HOLDING MORE THAN 5 OF ITS OWN SHARES BECAUSE NOMURA EXERCISED EFFECTIVE CONTROL OVER THEM SOME OF THE SHARES WERE LATER REPURCHASED AND THE TAX ASSESSMENT IS BASED UPON THE DIFFERENCE BETWEEN THE TRANSACTION PRICE AND FAIR MARKET VALUE THE PRACTICE WAS DISCONTINUED IN OCTOBER 1991 9307090080 930709 QMS EXPECTS THIRDPERIOD LOSS MOBILE ALA QMS INC SAID IT EXPECTS TO REPORT A THIRDQUARTER PERSHARE NET LOSS OF 12 TO 15 CENTS LARGELY FROM LOWER EUROPEAN SALES THE COMPANY WHICH PRODUCES DOCUMENTPROCESSING TECHNOLOGY SAID IT EXPECTS REVENUE FOR THE QUARTER ENDED JULY 2 TO BE ABOUT 70 MILLION QMS ESTIMATED THAT THE NET LOSS COULD BE AS MUCH AS 135 MILLION TO 165 MILLION IN THE YEAREARLIER QUARTER QMS HAD A NET LOSS OF ABOUT 1 MILLION OR NINE CENTS A SHARE 9307090079 930709 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 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 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 310 30 TO 59 DAYS 313 60 TO 149 DAYS 320 150 TO 179 DAYS 322 180 TO 229 DAYS 330 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 268 TWO MONTHS 270 THREE MONTHS 288 SIX MONTHS 308 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 305 30 DAYS 306 60 DAYS 308 90 DAYS 312 120 DAYS 316 150 DAYS 323 180 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 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 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 TUESDAY JULY 6 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 301 13 WEEKS 310 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 702 60 DAYS 709 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 698 60 DAYS 708 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9307090078 930709 FUTURE COMMUNICATIONS INC DALLAS FUTURE COMMUNICATIONS INC SAID IT RECEIVED A LETTER OF COMMITMENT FROM A WEST COAST FINANCE COMPANY TO LEASE A COPYRIGHTED LIBRARY OF 700 MOTION PICTURES THAT THE FINANCE COMPANY IS PURCHASING FOR 125 MILLION THE BROADCASTING COMPANY WOULDN'T IDENTIFY EITHER THE FINANCE COMPANY OR THE SELLERS OF THE LIBRARY 9307090077 930709 INTERNATIONAL BRIEF YASUDA FIRE & MARINE INSURANCE CO STAKE IN CIGNA'S INA UNIT IS VALUED IN BILLIONS OF YEN' YASUDA FIRE & MARINE INSURANCE CO'S PURCHASE OF A 10 STAKE IN INA LIFE INSURANCE IS VALUED IN THE BILLIONS OF YEN A SPOKESMAN FOR THE JAPANESE NONLIFE INSURER SAID ONE BILLION YEN IS EQUIVALENT TO 93 MILLION INA IS THE JAPANESE UNIT OF CIGNA CORP PHILADELPHIA THE TRANSACTION TOOK PLACE WEDNESDAY BUT WASN'T ANNOUNCED IN THE US UNTIL YESTERDAY FINANCIAL DETAILS WEREN'T DISCLOSED CIGNA SAID ITS NONLIFE INSURANCE OPERATIONS IN JAPAN AREN'T INVOLVED THE YASUDA SPOKESMAN SAID THE COMPANY HOPES TO STRENGTHEN ITS EXISTING RELATIONSHIP WITH INA AND GET A FIRM FOOTHOLD IN THE LIFE INSURANCE BUSINESS DEREGULATION OF THE JAPANESE INSURANCE INDUSTRY WILL ALLOW LIFE INSURERS AND NONLIFE INSURERS TO ENTER ONE ANOTHER'S FIELDS VIA SUBSIDIARIES FROM 1995 ON YASUDA IS THE FIRST JAPANESE NONLIFE INSURER TO TAKE A LARGE STAKE IN A LIFE INSURER 9307090076 930709 PACIFIC BANK RESCINDS PLACEMENT SAN FRANCISCO PACIFIC BANK NA SAID IT BEGAN AN ANNOUNCED RECISION OFFER OF A RECENT PRIVATE PLACEMENT OF BANK SECURITIES THE OFFER THE RESULT OF A SUBSEQUENT REGULATORY ORDER THAT IT RESTATE ITS LOANLOSS RESERVES EXPIRES AUG 3 THE BANK SAID 9307090075 930709 BUSINESS BRIEF YOUNKERS INC NET IN 2ND PERIOD WON'T HIT FORECASTS STOCK FALLS 14 YOUNKERS INC'S STOCK TUMBLED AFTER THE COMPANY SAID SECONDQUARTER PERSHARE NET INCOME WILL BE SIGNIFICANTLY LOWER THAN ANALYSTS' PROJECTIONS IN THE MID20 CENTS RANGE YOUNKERS A FASTGROWING RETAILER BASED IN DES MOINES IOWA HAS IN RECENT MONTHS WOWED WALL STREET BY POSTING DOUBLEDIGIT SALES INCREASES AT STORES OPEN AT LEAST A YEAR BUCKING THE TREND IN A GENERALLY SLUGGISH INDUSTRY ITS PROFITS TOO HAVE BENEFITED FROM LOW INVENTORIES WHICH KEEPS IT FROM DISCOUNTING AS HEAVILY INDEED YOUNKERS SAID SECONDQUARTER PROFIT WILL BE SUBSTANTIALLY HIGHER THAN YEAREARLIER NET OF 283000 OR FOUR CENTS A SHARE ON SALES OF 719 MILLION BUT EARNINGS WILL FALL SHORT OF THE ROUGHLY 25 CENTS A SHARE ANALYSTS WERE LOOKING FOR BECAUSE OF HIGHERTHANEXPECTED OPERATING EXPENSES AND TO A LESSER EXTENT LOWER FINANCECHARGE INCOME YOUNKERS SAID THE NEWS SENT YOUNKERS STOCK SINKING 14 OR 375 TO CLOSE AT 2375 IN HIGHVOLUME NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY ALSO SAID IT HASN'T REAPED THE RETURNS IT EXPECTED FROM ITS SEPTEMBER ACQUISITION OF 25 HC PRANGE CO STORES TO INCREASE OPERATING EFFICIENCES IN THOSE STORES YOUNKERS IS BRINGING INHOUSE THE MERCHANDISE INFORMATION AND DISTRIBUTION SERVICES PREVIOUSLY OUTSOURCED TO PRANGE 9307090074 930709 DOING THE DEAL THE DEFICIT REDUCTION CONFERENCE WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SCHAFER TAXBILL CONFEREES MUST FILL A HUGE REVENUE GAP TO PASS CLINTON'S PLAN THE HOUSESENATE CONFERENCE THAT STARTS NEXT WEEK MUST FIND 20 BILLION TO 30 BILLION IN REVENUES TO RESTORE SENATE CUTS CONFEREES WILL HAVE TO EASE MEDICARE CUTS INCREASE THE TAX BREAK FOR THE WORKING POOR AND RESTORE URBAN ENTERPRISE ZONES TO WIN OVER HOUSE LIBERALS ESPECIALLY THE BLACK CAUCUS THEY ALSO PROBABLY WILL HAVE TO RESTORE SOME SMALL BUSINESS TAX BREAKS TO WIN PASSAGE KEY FIGHTS WILL BE OVER HOW TO PAY FOR THE CHANGES IDEAS INCLUDE INCREASE THE SENATE'S 43CENTAGALLON GASOLINE TAX BY ANOTHER PENNY OR TWO MAKE THE FULL INCOMETAX RISE EFFECTIVE THIS YEAR AS THE HOUSE DID RAISE THE CORPORATE RATE TO 36 RATHER THAN TO 35 OR ADD A TAX ON UTILITY BILLS DEMOCRATS FEAR SPECIAL INTERESTS WILL GAIN STRENGTH IF THE CONFERENCE DRAGS ON THIS WEEK LAWMAKERS GOT AN EARFUL OF CONSTITUENT COMPLAINTS ABOUT TAXES AND SPENDING CUTS CLINTON'S CREDIBILITY ON ECONOMIC CHANGE RIDES ON THE CONFERENCE OUTCOME THE NARROW HOUSE AND SENATE WINS GIVE THE WHITE HOUSE ALMOST NO LEEWAY FOR ERROR ON THE CONFERENCE BILL YOU CAN'T EVEN LOSE A CLIQUE LET ALONE A COALITION ONE SENIOR CLINTON AIDE SAYS STAFF MEMBERS OF THE HOUSE LEADERSHIP WERE CALLED TO A WHITE HOUSE STRATEGY SESSION YESTERDAY CHIEF OF STAFF MCLARTY AND BUDGET DIRECTOR PANETTA WILL LEAD THE WHITE HOUSE TEAM ON CAPITOL HILL BUT TREASURY CHIEF BENTSEN IS COUNTED ON IN THE CRUNCH THE FORMER SENATOR HAS WRITTEN MORE TAX BILLS THAN ANYONE ELSE EXCEPT ROSTENKOWSKI A TOP DEMOCRAT SAYS ONE BUDGET OFFICIAL WORRIES THAT IN THE END DEFICITREDUCTION MAY DROP BELOW THE 500 BILLION TARGET SET BY CLINTON OVER FIVE YEARS CLINTON'S ECONOMIC PLAN AT HOME BOLSTERS HIS PROFILE IN JAPAN US OFFICIALS DEFLECT FOREIGN CRITICISM OF US ECONOMIC POLICY AT THE G7 MEETING IN TOKYO BY STRESSING THAT CLINTON HAD THE GUTS TO DO WHAT THE OTHER G7 NATIONS HAVE LONG ADVOCATEDRAISE TAXES AND CUT THE DEFICIT BUT JAPAN DOESN'T RESPOND TO US PLEAS TO STIMULATE ITS OWN ECONOMY BENTSEN IS SURPRISED BY THE INTENSITY OF HIS COUNTERPARTS' INTEREST IN THE US TAX DELIBERATIONS IN TALKS WITH THE JAPANESE CLINTON STAKES HIS REPUTATION ON ACHIEVING HIS 500 BILLION FIVEYEAR GOAL OF DEFICIT REDUCTION A FAILURE IN CONFERENCE OR A SUBSTANTIALLY SCALED BACK PACKAGE WOULD BE A MAJOR INTERNATIONAL EMBARRASSMENT CLINTON'S AIDES HOPE HIS STRONG PERFORMANCE IN TOKYO THIS WEEK WILL BOOST HIS STATURE AT HOME HELPING HIM RALLY SUPPORT FOR THE TAX BILL PARTISAN PITCHES THE DEMOCRATIC PARTY PLANS A MEDIA BLITZ AND AN AGGRESSIVE PHONE CAMPAIGN TO STIR SUPPORT FOR CLINTON'S PROGRAM IN THE TAXBILL CONFERENCE THE GOP WILL SPEND MORE THAN 100000 FOR RADIO ADS IN 20 STATES TO FIGHT CLINTON'S PLAN MEMBERS OF PEROT'S UNITED WE STAND AMERICA PLAN TO LOBBY CONFEREES GRAY POWER THE 34MILLIONMEMBER AMERICAN ASSOCIATION OF RETIRED PERSONS OPENS A LETTERWRITING CAMPAIGN TO FIGHT MEDICARE CUTS IN THE TAX BILLS AARP WHICH HELD ITS FIRE AFTER CLINTON PROPOSED 50 BILLION IN MEDICARE CUTS OVER FIVE YEARS FEELS BURNED BY THE ADMINISTRATION'S SILENCE ON SENATE MOVES FOR A SHARPLY BIGGER CUT BANKERS WEIGH IN ON NONTAX ISSUES IN THE TAX BILL AFTER FAILING TO STOP A CLINTONBACKED HOUSE PROVISION TO REPLACE FEDERALLY GUARANTEED STUDENT LOANS FROM BANKS WITH DIRECT FEDERAL LOANS THEY ARE OPTIMISTIC THAT A SENATE VERSION TO LIMIT THE DIRECT LENDING TO A MAXIMUM OF 50 OF STUDENT LOANS WILL PREVAIL ENERGY LOBBYISTS MOAN OVER EXCLUSION OF SENS BOREN OF OKLAHOMA AND BREAUX OF LOUISIANA FROM THE CONFERENCE BUT THE HYDROELECTRIC POWER INDUSTRY PINS ITS HOPES ON CONFERENCE MEMBER BAUCUS OF MONTANA WHO IS SYMPATHETIC TO MINIMIZING HARM TO HYDROELECTRICITY FROM ANY ENERGY TAX LOBBYISTS SCRAMBLE TO PROTECT SPECIAL INTERESTS IN THE CONFERENCE BILL THE AMERICAN TRUCKING ASSOCIATIONS STUNG BY THE SENATE'S GASOLINETAX RISE WORKS TO SPREAD THE ENERGY TAX TO OTHER GROUPS ELECTRIC UTILITIES FIERCELY COUNTER THAT A TAX ON RESIDENTIAL GAS AND ELECTRIC COULD BOOST THE AVERAGE CUSTOMER'S BILL UP TO 10 DRUG COMPANIES COUNT ON SENS MOYNIHAN AND BRADLEY TO PROTECT THEIR PUERTO RICAN TAX BREAK HEWLETTPACKARD LEADS A FIGHT TO MINIMIZE A PROVISION IMPOSING TAXES ON FOREIGNDERIVED INCOME CITIZENS FOR A SOUND ECONOMY A BUSINESSBACKED COALITION THAT HELPED KILL THE BTU TAX IN THE SENATE CAMPAIGNS TO PROTECT BUSINESS OWNERS WHO WOULD BE HIT BY THE HIGHER PERSONAL TAX RATE LOBBYISTS WILL LOBBY TO PRESERVE THE TAX DEDUCTIBILITY OF LOBBYING EXPENSES MINOR MEMOS EVEN BEN AND JERRY'S HOMEMADE INC GETS INVOLVED IN TAXBILL LOBBYING BACKING THE SENATE'S MORATORIUM ON THE USE OF BOVINE GROWTH HORMONE WHICH IS INJECTED IN COWS TO INCREASE MILK PRODUCTION NOT SO FAST HOUSE SPEAKER FOLEY WON'T NAME CONFEREES UNTIL NEXT WEEK FEARFUL OF AN OBSCURE HOUSE RULE THAT ONCE MEMBERS ARE NAMED THEIR WORK MUST BE COMPLETED IN 20 DAYS 9307090073 930709 BUSINESS BRIEF HAROLD'S STORES INC SPECIALTY CHAIN SUES DILLARD OVER COPYRIGHTS OF DESIGNS HAROLD'S STORES INC SAID IT SUED DILLARD DEPARTMENT STORES INC IN AN OKLAHOMA FEDERAL COURT FOR ALLEGED COPYRIGHT INFRINGEMENT THE NORMAN OKLA SPECIALTY STORE CHAIN CLAIMS IN THE SUIT THAT DILLARD'S STORES WERE SELLING GARMENTS COPIED FROM COPYRIGHTED DESIGNS BELONGING TO HAROLD'S STORES AND CMT ENTERPRISES INC A CLOTHING MANUFACTURER BASED IN NEW YORK CMT IS ALSO A PLAINTIFF IN THE SUIT THE SUIT SEEKS UNSPECIFIED DAMAGES AND AN INJUNCTION AND ASKS THAT DILLARD BE FORCED TO FORFEIT THE RIGHT TO DO BUSINESS IN OKLAHOMA OFFICIALS OF DILLARD BASED IN LITTLE ROCK ARK COULDN'T BE REACHED FOR COMMENT 9307090072 930709 RANCHOWNER STEELE GETS 7YEAR SENTENCE FOR PLOT AND FRAUD JUDGE SAYS LIVESTOCK VENTURE SCHEME TO RETURN MARCOS TO PHILIPPINES SHOW GREED BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL ROBERT L STEELE HAS FINALLY BEEN CORRALLED WHO IS ROBERT STEELE HE'S THE ARCHITECT OF A LITTLEKNOWN PLOT TO SMUGGLE FERDINAND MARCOS THE DEPOSED PRESIDENT OF THE PHILIPPINES OUT OF HAWAII IN 1987 AND BACK TO HIS NATIVE COUNTRY THE SCHEME FELL APART WHEN SOME COCONSPIRATORS WERE ARRESTED BUYING GUNS FROM UNDERCOVER AGENTS AND MR MARCOS EVENTUALLY DIED IN EXILE IN HAWAII MR STEELE IS ALSO THE OWNER OF A RANCH IN UPSTATE NEW YORK LEATHERSTOCKING FARM WHO DEFRAUDED 12 INVESTORS OUT OF MORE THAN 1 MILLION WHEN HE SOLD INTERESTS IN AN ANGUS BULL NAMED HIGH VOLTAGE WHOSE STUD VALUE PROVED TO BE FAR LESS ELECTRIC YESTERDAY MR STEELE WAS SENTENCED IN FEDERAL COURT IN NEWARK NJ TO SEVEN YEARS IN PRISON FOR THE MARCOS PLOT AND THE FRAUD CASE MR STEELE THE FORMER OWNER OF A SECURITY BUSINESS PLEADED GUILTY LAST YEAR TO TWO CRIMINAL COUNTS RELATED TO THE MARCOS SCHEME AND ONE CRIMINAL COUNT OF FRAUD RELATED TO THE BULL BUSINESS LIKE NATTY BUMPO THE HERO OF THE FAMOUS LEATHERSTOCKING TALES THAT GAVE THE RANCH ITS NAME MR STEELE VIEWED HIMSELF AS A FREE SPIRIT HE ATTENDED CONVENTIONS SPONSORED BY THE SOLDIER OF FORTUNE MAGAZINE WHICH OFTEN HIGHLIGHTS MERCENARIES AND ADVENTURERS BEFORE HIS SENTENCING IN AN EMOTIONAL SPEECH HE TOLD US DISTRICT JUDGE ALFRED J LECHNER JR THAT HE SAW HIS INVOLVEMENT WITH MR MARCOS AS AN OUTGROWTH OF HIS STRONG PATRIOTIC SPIRIT BUT JUDGE LECHNER SAID THAT THE COMMON THREAD AMONG MR STEELE'S ACTIONS WAS GREED THE STEELE CASE ALSO SHOWS THE EXTENT TO WHICH MR MARCOS WAS WILLING TO GO TO RETURN TO THE PHILIPPINES THE DEPOSED LEADER ALLEGEDLY MET WITH MR STEELE AND HIS COHORTS IN HAWAII MR MARCOS ALLEGEDLY TRANSFERRED 9 MILLION TO MR STEELE TO HELP FUND THE OPERATION ACCORDING TO THE COURT PAPERS MR STEELE KEPT 6 MILLION MORE THAN 2 MILLION WENT TO ADDITIONAL CONSPIRATORS AND A FEW HUNDRED THOUSAND DOLLARS ACTUALLY WENT TO FUND THE SCHEME MR STEELE WENT AS FAR AS RECRUITING MERCENARIES AND TRAVELING TO THE PHILIPPINES WHERE HE ALLEGEDLY OFFERED ONE SENATOR A 100 MILLION BRIBE HE WAS TURNED DOWN THE SENATOR SAID IT WASN'T ENOUGH MONEY ACCORDING TO COURT PAPERS MR STEELE AND HIS COCONSPIRATORS ALSO PREPARED A LETTER THEY PLANNED TO DISTRIBUTE IF THEIR PLOT TO RESTORE MR MARCOS TO POWER SUCCEEDED AMONG OTHER PROMISES THE LETTER SAYS THAT MR MARCOS'S WIFE IMELDA WHOSE SHOES BECAME A SYMBOL OF THE CORRUPT REGIME WOULDN'T IMMEDIATELY RETURN WITH HER HUSBAND TO PRESIDENTIAL QUARTERS 9307090071 930709 ECONOMY CONSUMER DEBT LOAD IS RISING AGAIN DESPITE A STEADY DECLINE IN CONFIDENCE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WATCH WHAT CONSUMERS DO AND NOT WHAT THEY SAY DESPITE STEADY DROPS IN CONSUMER CONFIDENCE SINCE THE START OF THE YEAR CONSUMERS ARE BORROWING AGAIN CONSUMER INSTALLMENT CREDIT HAS BEEN RISING AT A FAIRLY STRONG CLIP SINCE DECEMBER IN FACT ITS FASTEST GROWTH RATE SINCE 1989 YESTERDAY THE FEDERAL RESERVE SAID THE DEBT LOADS OF AMERICANS FELL IN MAY BY 802 MILLION OR AT AN ANNUAL RATE OF 13 BUT THE CENTRAL BANK BLAMED THE DROP ON A STATISTICAL QUIRK THE FED SAID THE DECLINE CAME ABOUT WHEN 3 BILLION OF LOANS WERE SOLD TO GROUPS OUTSIDE THE SCOPE OF ITS SURVEY IF THESE LOANS HAD BEEN COUNTED IN THE SURVEY THE REPORT WOULD HAVE SHOWN THE TENTH INCREASE IN A ROW AUTO LOANS IN MAY ROSE A HEALTHY 173 BILLION OR 79 AT AN ANNUAL RATE WHILE CREDITCARD DEBT AND OTHER REVOLVING CREDIT WERE UP 942 MILLION OR AN ANNUAL RATE OF 43 THE OVERALL DIP IS NOTHING TO BE CONCERNED ABOUT SAID RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH THIS DOESN'T INDICATE ANY REAL RETRENCHMENT TO BE SURE AMERICANS ARE HARDLY BORROWING AT THE LIGHTNINGQUICK PACE OF THE '80S OR AT THE RATE IN PREVIOUS ECONOMIC RECOVERIES ACCORDING TO THE FED SINCE THE TROUGH OF THE RECENT RECESSION IN MARCH 1991 CONSUMER INSTALLMENT CREDIT HAS RISEN ROUGHLY 21 AT THIS POINT IN THE 1982 EXPANSION HOWEVER CONSUMER DEBT HAD JUMPED 374 AND IN THE 1975 RECOVERY IT HAD RISEN 241 STILL THE FACT THAT CONSUMERS HAVE BEEN CONSISTENTLY ADDING TO THEIR DEBT LOADS AFTER MORE THAN TWO YEARS OF SHAVING THEM DOWN IS A MILESTONE OF SORTS WE HAVE CROSSED A VERY IMPORTANT THRESHOLD IN CONSUMER BORROWING SAYS DAVID HALE CHIEF ECONOMIST FOR KEMPER FINANCIAL SERVICES INC IN CHICAGO THE FED'S CONSUMER INSTALLMENT FIGURES DON'T INCLUDE HOMEEQUITY LOANS BUT THEY ARE PICKING UP STEAM TOO SINCE LATE MARCH PERSONAL LOANS AT ALL BANKS ARE UP ROUGHLY 81 BILLION ACCORDING TO CJ LAWRENCE INC OF NEW YORK INCLUDING HOMEEQUITY LOANS THE GAIN IS 92 BILLION THE UPTURN IN CONSUMER BORROWING SUGGESTS THAT THE HOUSEHOLD SECTOR HAS COMPLETED ITS PROCESS OF BALANCESHEET ADJUSTMENT AND IS NOW POISED TO PLAY A MORE AGGRESSIVE ROLE IN PROVIDING THE ECONOMY WITH SPENDING STIMULUS MR HALE WROTE IN A RECENT KEMPER REPORT BUT SOME ECONOMISTS AREN'T AS OPTIMISTIC ABOUT HOW MUCH CONSUMER BORROWING WILL AID THIS SLUGGISH RECOVERY FOR ONE THING JOB GROWTH IS STILL QUITE SLOW AND INCOMES HAVE NOT BEEN RISING SIGNIFICANTLY ALSO ALTHOUGH LOW INTEREST RATES HAVE ENABLED AMERICANS TO LOWER THEIR MONTHLY LOAN PAYMENTS THE DEBTTOINCOME RATIO OF MOST CONSUMERS IS STILL HIGH CONSUMERS ARE STILL NERVOUS ABOUT THE CIRCUMSTANCES OF LIFE SAYS BRUCE STEINBERG ECONOMIST WITH MERRILL LYNCH & CO IN NEW YORK THAT DOESN'T MAKE PEOPLE FEEL VERY CONFIDENT ABOUT TAKING ON A LOT OF EXTRA DEBT WHILE AUTO LOANS MAY BE HELPING TO GIVE AN EXTRA PUSH TO THE ECONOMY CREDITCARD USE MAY NOT BE DOING AS MUCH AS IT WOULD SEEM DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT A CREDITCARD NEWSLETTER BASED IN OXNARD CALIF POINTS OUT THAT MANY CONSUMERS ARE USING THEIR CREDIT CARDS FOR PURCHASES THAT THEY USED TO WRITE CHECKS OR PAY CASH FOR THINGS LIKE HEALTH CARE GROCERIES MOVIE TICKETS AND EVEN FAST FOOD FOR INSTANCE THAT SUGGESTS CONSUMERS MAY NOT BE BUYING MORE BUT SIMPLY SWITCHING THEIR PAYMENT METHOD ALSO MANY CREDITCARD COMPANIES ARE OFFERING SPECIAL PERKS SUCH AS FREQUENTFLIER MILES OR REBATE POINTS WHEN CONSUMERS USE CREDIT THESE KINDS OF INCENTIVES ARE CAUSING PEOPLE TO REACH FOR PLASTIC INSTEAD OF CASH SAYS MR ROBERTSON THE GOOD NEWS THOUGH IS THAT CONSUMERS SEEM TO BE MANAGING THEIR DEBT BETTER IT DOES SEEM LIKE PEOPLE ARE USING THEIR CREDIT CARDS MORE BUT THEY TEND TO BE PAYING BALANCES OFF SOONER SAYS BRAD HENNIG SPOKESMAN FOR VISA IN SAN RAFAEL CALIF MR HENNIG NOTES THAT DELINQUENCIES AND CHARGEOFFS AT THE CREDITCARD COMPANY ARE THE LOWEST THEY HAVE BEEN IN 21 MONTHS WHILE AUTO LOANS AND CREDITCARD USE ROSE IN MAY A CATCHALL CATEGORY WHICH INCLUDES LOANS FOR SCHOOL TUITION TAXES AND MOBILE HOMES PLUNGED 347 BILLION OR 181 AT AN ANNUAL RATE THE FED SAID IT IS LOOKING INTO POSSIBLY EXPANDING THE SAMPLE IN ITS CONSUMER CREDIT REPORT TO TRY TO CATCH SOME OF THE LOANS IT IS MISSING RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR MAY IN BILLIONS AND PERCENTAGE CHANGES FROM FEBRUARY AT AN ANNUAL RATE 9307090070 930709 BUSINESS BRIEF ANNTAYLOR STORES CORP RETAILER SAYS ITS SALES ROSE IN FIVE WEEKS ENDED JULY 3 ANNTAYLOR STORES CORP REPORTED SALES INCREASED 84 TO 474 MILLION IN THE FIVE WEEKS ENDED JULY 3 FOR STORES OPEN MORE THAN A YEAR SALES INCREASED 54 FROM A YEAR EARLIER IN THE YEAREARLIER PERIOD SALES WERE 437 MILLION THE 1992 FIGURE DOESN'T INCLUDE SALES OF 781000 FROM LEASED SHOE DEPARTMENTS WHICH HAVE BEEN PHASED OUT THE NEW YORKBASED RETAILER HAS 219 STORES NATIONWIDE FOR THE FISCAL YEAR BEGUN FEB 1 TO DATE SALES WERE 211 MILLION UP 9 FROM 1936 MILLION IN THE 1992 PERIOD EXCLUDING SALES OF 39 MILLION FROM LEASED SHOE DEPARTMENTS IN STORES OPEN MORE THAN A YEAR YEARTODATE SALES INCREASED 54 THE COMPANY ALSO SAID IT COMPLETED THE ISSUANCE OF 110 MILLION OF SUBORDINATED NOTES DUE IN 2000 IT RETIRED ITS BANK CREDIT FACILITIES AND ENTERED INTO A NEW BANK CREDIT AGREEMENT FOR A TERM LOAN OF 80 MILLION AND A REVOLVING CREDIT FACILITY OF 55 MILLION ANNTAYLOR PLAN TO USE THE REFINANCING TO REPURCHASE OR REDEEM HIGHYIELD SENIOR SUBORDINATED DISCOUNT NOTES AND SUBORDINATED NOTES 9307090069 930709 BUSINESS BRIEF NIKE'S FISCAL FOURTHPERIOD NET INCOME ROSE 87 BELOW ANALYSTS' ESTIMATES BEAVERTON ORE NIKE INC SAID FISCAL FOURTHQUARTER NET INCOME ROSE 87 SLIGHTLY BELOW ANALYSTS' PROJECTIONS AND PROVIDED EVIDENCE OF SLOWING GROWTH THAT IT PREVIOUSLY PREDICTED THE COMPANY ALSO ANNOUNCED A 450 MILLION SHARE BUYBACK PLAN FOR ITS CLASS B COMMON STOCK OVER THE NEXT THREE YEARS NET INCOME WAS 769 MILLION OR 1 A SHARE FOR THE PERIOD ENDED MAY 31 COMPARED WITH 707 MILLION OR 92 CENTS A SHARE A YEAR AGO ANALYSTS HAD BEEN LOOKING FOR 104 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH QUARTERLY SALES WERE UP 16 TO 9833 MILLION COMPARED WITH 8476 MILLION NIKE NOTED THAT ORDERS FOR ITS FOOTWEAR AND APPAREL FOR THE FIRST HALF OF THE CURRENT FISCAL YEAR STAND AT 16 BILLION DOWN 1 FROM THE YEARAGO PERIOD THE COMPANY FORESHADOWED THIS SLUGGISHNESS ON JUNE 18 WHEN IT REPORTED THAT EARNINGS FOR FISCAL 1994 WOULD FALL SIGNIFICANTLY BELOW ANALYSTS' EXPECTATIONS OF 550 A SHARE THE WALL STREET CONSENSUS NOW IS FOR THE COMPANY TO EARN 534 THE SLOWDOWN ARISES FROM ECONOMIC UNCERTAINTY AND CAUTIOUS CONSUMER SENTIMENT AS REFLECTED BY ITS RETAILER CUSTOMERS NIKE SAID THE ORDERS ALSO SUGGEST THAT THE YEAREND SELLING SEASON WILL BE DISAPPOINTING AT LEAST FOR NIKE THESE ARE ALL TEMPORARY CONDITIONS AND NONE DETER US FROM PURSUING THE SUBSTANTIAL GROWTH OPPORTUNITIES THAT REMAIN AROUND THE WORLD SAID PHILIP KNIGHT CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR THE FULL 1993 FISCAL YEAR NIKE EARNED 365 MILLION OR 474 A SHARE UP 11 FROM 3292 MILLION OR 430 A SHARE IN 1992 SALES WERE 393 BILLION COMPARED WITH 341 BILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S STOCK CLOSED AT 56 A SHARE UP 150 SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED 300 MILLION OF NIKE COMMERCIAL PAPER TO PRIME1 FROM PRIME2 CITING THE COMPANY'S STRONG FINANCIAL POSTURE AND NOTWITHSTANDING THE SHARE BUYBACK 9307090068 930709 BUSINESS BRIEF ADOLPH COORS POSTS 34 INCREASE IN NET FOR FISCAL 2ND PERIOD GOLDEN COLO ADOLPH COORS CO REPORTED A 34 INCREASE IN FISCAL SECONDQUARTER NET INCOME AND A 25 INCREASE IN PROFIT FROM CONTINUING OPERATIONS THE BREWER CAUTIONED THAT RESULTS IN THE SECOND HALF OF THE YEAR COULD BE AFFECTED BY CONTINUED PRICE DISCOUNTING IN THE MARKET AND HEAVY PROMOTIONAL EXPENSES IN THE SUMMER MONTHS FOR THE 12WEEK QUARTER ENDED JUNE 13 THE COMPANY REPORTED NET INCOME OF 189 MILLION OR 50 CENTS A SHARE COMPARED WITH 183 MILLION OR 49 CENTS A SHARE A YEAR AGO THE YEARAGO NET INCLUDED OPERATIONS OF ACX TECHNOLOGIES INC WHICH WAS SPUN OFF TO SHAREHOLDERS IN DECEMBER 1993 YEARAGO PROFIT FROM CONTINUING OPERATIONS WAS 149 MILLION OR 40 CENTS A SHARE SALES ROSE ABOUT 1 TO 5066 MILLION FROM 5023 MILLION THE COORS BREWING CO UNIT'S BEER SALES INCREASED 09 FOR THE 24WEEK PERIOD THE COMPANY REPORTED NET OF 235 MILLION OR 62 CENTS A SHARE COMPARED WITH A LOSS OF 27 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER THE YEARAGO 24WEEK PERIOD INCLUDED A LOSS FROM DISCONTINUED OPERATIONS OF 88 MILLION AND A NET CHARGE FROM ACCOUNTING CHANGES OF 83 MILLION PROFIT FROM CONTINUING OPERATIONS IN THE YEARAGO 24WEEK PERIOD WAS 143 MILLION 9307090067 930709 ITALY'S PARLIAMENT SETS PLANS FOR INVESTIGATION OF FERRUZZI'S DEMISE SPECIAL TO THE WALL STREET JOURNAL MILAN ITALY'S CHAMBER OF DEPUTIES OR LOWER HOUSE OF PARLIAMENT IS PLANNING TO SET UP A COMMISSION TO INVESTIGATE THE DEMISE OF ITALY'S SECONDLARGEST PRIVATE INDUSTRIAL GROUP FERRUZZI FINANZIARIA SPA ITALIAN NEWS AGENCY AGI REPORTED THE FORMAL REQUEST TO SET UP THE COMMISSION CAME FROM CHRISTIAN DEMOCRATIC DEPUTY GIACOMO ROSINI AFTER THE CHAMBER'S FINANCE COMMITTEE DECLARED ITSELF UNSATISFIED WITH THE INFORMATION ABOUT FERRUZZI PROVIDED BY TREASURY MINISTER PIERO BARUCCI BY STOCK MARKET REGULATOR ENZO BERLANDA AND BY THE BANK OF ITALY DURING SEVERAL DAYS OF TESTIMONY TO PARLIAMENT THE COMMISSION WILL TRY TO SHED LIGHT ON VARIOUS ASPECTS OF THE DEMISE OF THE INDEBTED AGROINDUSTRIAL CHEMICAL AND ENERGY CONGLOMERATE INCLUDING THE ROLE OF THE GROUP'S CREDITOR BANKS IN ITALY WHICH ARE OWED ABOUT 15 TRILLION LIRE 966 BILLION MR ROSINI SAID THAT ALTHOUGH THE COMMISSION WILL INITIATE ITS PROBE WITH FERRUZZI IT WILL ALSO EXAMINE MORE BROADLY THE RELATIONSHIP BETWEEN BANKS AND INDUSTRY IN ITALY THE SENATE OR UPPER HOUSE OF PARLIAMENT SAID ON WEDNESDAY IT HAD DECIDED TO LAUNCH ITS OWN PROBE OF THE FERRUZZI CASE VARIOUS ASPECTS OF WHICH ARE ALSO BEING EXAMINED BY MAGISTRATES AND BY STOCK MARKET REGULATORY AGENCY CONSOB FERRUZZI DEEPLY IN THE RED IS STAGGERING UNDER NEARLY 30 TRILLION LIRE WORTH OF NET DEBTS A POOL OF ITS KEY CREDITOR BANKS TOOK OVER OPERATIONAL CONTROL AND THE BANKS ARE PLANNING A RESTRUCTURING EVEN AS THE GROUP BECOMES ENMESHED IN A GROWING FINANCIAL SCANDAL SEPARATELY RENATO PICCO MANAGING DIRECTOR OF FERRUZZI'S ERIDANIABEGHIN SAY SA UNIT SAID THAT THE RESTRUCTURING OF FERRUZZI WON'T INVOLVE SELLING ERIDANIA ITS AGROINDUSTRIAL JEWEL I DON'T BELIEVE THAT THE FERRUZZI GROUP HAS TAKEN INTO CONSIDERATION THE IDEA OF SELLING THIS UNIT MR PICCO TOLD JOURNALISTS AT A MEETING IN ROME RUMORS THAT ERIDANIA IS UP FOR SALE ARE ONLY FANTASIES PERHAPS JUSTIFIED IN THIS MOMENT BUT WHICH HAVE NOTHING CONCRETE IN THEM HE ADDED 9307090066 930709 BUSINESS BRIEF FEDERAL PAPER BOARD CO FISCAL SECONDQUARTER NET FELL 61 ON 46 SALES DROP FEDERAL PAPER BOARD CO'S FISCAL SECONDQUARTER NET INCOME PLUNGED 61 REFLECTING LOW SELLING PRICES AND SLUGGISH SALES IN THE WEAK ECONOMY NET IN THE QUARTER ENDED JUNE 19 WAS 98 MILLION OR 20 CENTS A SHARE COMPARED WITH THE YEAREARLIER 253 MILLION OR 57 CENTS A SHARE SALES DECLINED 46 TO 3296 MILLION FROM THE YEAREARLIER 3454 MILLION THE MONTVALE NJ PAPER AND PAPERBOARD MAKER SAID THE SECONDQUARTER RESULTS WERE AFFECTED BY THE OVERALL WEAK ECONOMY THE COMPANY SAID ITS PULP BUSINESS IS STILL FEELING THE NEGATIVE IMPACT OF LOW SELLING PRICES BUT SAID IT DOESN'T EXPECT ANY SELLING PRICE CHANGES IN THE THIRD QUARTER FEDERAL PAPER'S STOCK ROSE 625 CENTS OR 29 TO CLOSE AT 22375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9307090065 930709 BUSINESS BRIEF INSTORE ADVERTISING INC PREPACKAGED REORGANIZATION FILED AND CREDITORS CLEAR IT INSTORE ADVERTISING INC GREENWICH CONN SAID IT FILED A PREPACKAGED BANKRUPTCYLAW REORGANIZATION PLAN THAT WOULD LEAVE IT SUBSTANTIALLY DEBTFREE WHILE GIVING LONGTERM SECURED CREDITORS ALL THE EQUITY THE COMPANY DELIVERS ADVERTISING AND PROMOTIONAL MESSAGES FROM CONSUMER PRODUCT COMPANIES THROUGH A NATIONWIDE COMPUTERIZED NETWORK OF ELECTRONIC SIGNS IN STORES UNDER THE PLAN FILED UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SECURED CREDITORS WILL EXCHANGE THE 17 MILLION OF DEBT THEY HOLD FOR EQUITY WITH A FACE VALUE OF 8 MILLION THE COMPANY'S EXISTING COMMON STOCK WILL BE CANCELED AND SECURITIESRELATED LITIGATION AGAINST THE COMPANY WILL BE DROPPED WITHOUT COST TO INSTORE THE COMPANY SAID ITS SECURED LESSORS WHO ARE THE ONLY CREDITORS ENTITLED TO VOTE ON THE PLAN HAVE GIVEN THE PLAN UNANIMOUS SUPPORT INSTORE EXPECTS TO EMERGE SHORTLY FROM BANKRUPTCYCOURT PROTECTION AND A COURT HEARING ON THE PLAN'S CONFIRMATION IS SCHEDULED FOR AUG INSTORE ALSO SAID BRUCE MAGGIN JEFFREY WALKER AND COWSY WADIA HAVE RESIGNED AS DIRECTORS 9307090064 930709 WHAT'S NEWS WORLDWIDE RUSSIA RECEIVED A 3 BILLION AID COMMITMENT FROM INDUSTRIAL NATIONS THE US SQUEEZED OUT SOME EXTRA CONTRIBUTIONS FROM GROUP OF SEVEN LEADERS FOR THE AID PACKAGE TO BE USED TO PRIVATIZE RUSSIAN STATE ENTERPRISES THE NEW G7 FUNDING BROUGHT CLINTON THREEQUARTERS OF THE WAY TO THE 4 BILLION TARGET HE HAD SET THE US PORTRAYED THE COMMITMENTS AS ANOTHER VICTORY FOR THE PRESIDENT AT THE TOKYO SUMMIT IN AN ECONOMIC COMMUNIQUE EUROPE ACKNOWLEDGED THE IMPORTANCE OF LOWER INTEREST RATES AND JAPAN PLEDGED TO TAKE STEPS TO TRIM ITS TRADE SURPLUS YELTSIN ARRIVED AT THE SUMMIT KEEN TO CLINCH PROMISES OF CREDITS BUT SAYING RUSSIA WILL NOT PLAY THE ROLE OF SUPPLICANT BUT THAT OF A GREAT POWER SARAJEVO RESIDENTS FACE THE POSSIBILITY OF A CATASTROPHE ON A SCALE NOT SEEN SINCE WORLD WAR II THE WORLD HEALTH ORGANIZATION WARNED IT URGED THE UN SECURITY COUNCIL TO RUSH FOOD MEDICINE AND FUEL TO THE BESIEGED BOSNIAN CAPITAL AND OTHER TOWNS RELIEF WORKERS IN SARAJEVO SAID PEOPLE ARE STARTING TO BOIL SEWAGE FOR DRINKING WATER CLINTON SAID HE WILL ASK CONGRESS NEXT WEEK TO APPROVE EMERGENCY DISASTER AID FOR MIDWEST FLOOD VICTIMS AS MORE STORMS HIT THE REGION AGGRAVATING FLOODING ALONG THE MISSISSIPPI AND ITS TRIBUTARIES THE ESTIMATES OF DAMAGE TO CROPS PROPERTY BUSINESSES AND TOWNS JUMPED PAST 2 BILLION CANCER RESEARCHERS MAY HAVE TAKEN A MAJOR STEP TOWARD THE LONGSOUGHT MAGIC BULLET TO FIGHT THE DISEASE SCIENTISTS AT BRISTOLMYERS SQUIBB DESCRIBED EXPERIMENTS IN WHICH A MONOCLONAL ANTIBODY COMBINED WITH A CANCER DRUG CURED MICE AND RATS OF TRANSPLANTED HUMAN LUNG AND COLON CANCERS UN ARMS INSPECTORS PLAN TO SEAL EQUIPMENT AT TWO IRAQI MISSILE SITES IN AN EFFORT TO DISABLE THE EQUIPMENT UNTIL BAGHDAD ALLOWS MONITORING CAMERAS TO BE INSTALLED WHETHER IRAQ WILL PERMIT THE SEALS AT THE ROCKETTESTING STATIONS IS UNCERTAIN SEVEN MUSLIM MILITANTS WERE HANGED IN CAIRO FOR ATTACKING FOREIGN TOURISTS IN EGYPT THE SEVEN WERE SUPPORTERS OF SHEIK OMAR ABDELRAHMAN CURRENTLY DETAINED IN NEW YORK WHOSE FOLLOWERS HAVE BEEN LINKED TO THE WORLD TRADE CENTER BOMBING THE HANGINGS BROUGHT TO NINE THE NUMBER OF EGYPTIAN RADICALS EXECUTED SINCE OCTOBER A US NEGOTIATING TEAM MET IN JERUSALEM WITH ISRAELI PRIME MINISTER RABIN AND HIS AIDES IN AN ATTEMPT TO BREAK A DEADLOCK IN MIDEAST TALKS PALESTINIAN REPRESENTATIVES WERE DUE TO MEET WITH THE US TEAM TODAY AND TOMORROW BUT THEY SAID A US PROPOSAL ON ARAB SELFGOVERNMENT IN ISRAELIOCCUPIED LANDS WOULDN'T BE DISCUSSED US TAXPAYERS WILL BE SADDLED WITH A MULTIBILLIONDOLLAR ENVIRONMENTAL CLEANUP BILL IN YEARS AHEAD BECAUSE OF THE LONGTIME ABUSE OF FEDERALLY OWNED LANDS A CONGRESSIONAL REPORT CONCLUDED THREE TOP CULTURAL OFFICIALS WERE JAILED IN ITALY IN SEPARATE CORRUPTIONRELATED CASES OFFICIALS SAID AMONG THE THREE WAS FRANCESCO SISINNI HEAD OF THE CULTURAL HERITAGE MINISTRY ARRESTED ON FRAUD CHARGES IN CONNECTION WITH A RESTORATION PROJECT THE POPE UNAMBIGUOUSLY CONFIRMS THE ROMAN CATHOLIC CHURCH'S BAN ON ALL FORMS OF ARTIFICIAL BIRTH CONTROL IN AN ENCYCLICAL TO BE ISSUED THIS FALL A CATHOLIC MAGAZINE SAID POPE JOHN PAUL II AS EXPECTED RESTATES POPE PAUL VI'S BAN ON CONTRACEPTIVES BECAUSE THEY BLOCK THE TRANSMISSION OF LIFE THE MONTHLY CATHOLIC WORLD REPORT SAID THE BRITISH GOVERNMENT REJECTED NEW IRISH PROPOSALS TO SETTLE THE NORTHERN IRELAND CONFLICT AND RULED OUT ANY POSSIBILITY OF JOINT IRISH AND BRITISH SOVEREIGNTY OVER THE BRITISHADMINISTERED PROVINCE CLINTON ADMINISTRATION OFFICIALS PLEDGED THAT THEIR EFFORTS TO REFORM THE NATION'S WELFARE SYSTEM WOULD BE OPEN TO PUBLIC SCRUTINY AND THEY AVOIDED SETTING A DEADLINE FOR THE PLAN TO BE UNVEILED CLINTON LAST MONTH OUTLINED SOME PROPOSALS INCLUDING A TWOYEAR LIMIT ON WELFARE CHECKS NIGERIA'S PRESIDENTELECT DENOUNCED A TWOPARTY ACCORD THAT COULD FINALLY PUSH THE MILITARY OUT OF POWER BUT MAY ALSO KEEP HIM FROM ASSUMING THE OFFICE HE WON IN A LANDSLIDE ABIOLA'S OWN PARTY THE SOCIAL DEMOCRATS AND THE ONLY OTHER LEGAL PARTY THE REPUBLICANS AGREED WEDNESDAY TO FORM AN INTERIM CIVILIAN GOVERNMENT 9307090063 930709 BUSINESS BRIEF RESOLUTION TRUST CORP AGENCY SUES FORMER OFFICERS OF DEFUNCT THRIFT IMPERIAL THE RESOLUTION TRUST CORP A SAN DIEGOBASED US AGENCY FILED A LAWSUIT AGAINST 13 FORMER OFFICERS AND DIRECTORS OF DEFUNCT IMPERIAL SAVINGS ASSOCIATION ALLEGING NEGLIGENCE AND BREACH OF FIDUCIARY DUTY IN ONE OF THE NATION'S COSTLIEST THRIFT FAILURES THE SUIT ALLEGES THAT THE THRIFT'S OFFICERS PROMOTED RECKLESS LENDING AND MANAGEMENT PRACTICES AND THAT THE BOARD FAILED TO PROPERLY OVERSEE OPERATIONS SUCH ACTIONS CAUSED DAMAGES TO THE THRIFT OF AT LEAST 240 MILLION THE COMPLAINT ALLEGES THE DEFENDANTS INCLUDE FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER KENNETH J THYGERSON FIVE FELLOW OFFICERS AND SEVEN OUTSIDE DIRECTORS MR THYGERSON COULD NOT BE REACHED FOR COMMENT 9307090062 930709 MARKETING BRIEF NOTED MOVIE RATINGS MOVIEGOERS IN FOUR CITIES WILL SOON BE ABLE TO CALL THEIR LOCAL MOVIEFONE TELEPHONETICKETING SERVICE AND HEAR BRIEF EXPLANATIONS OF WHY MOVIES HAVE BEEN RATED PG PG13 OR R THE TEST WHICH WILL LAST TWO MONTHS IN DENVER DALLAS SAN DIEGO AND PHILADELPHIA IS BEING COORDINATED BY THE MOTION PICTURE ASSOCIATION OF AMERICA AND THE NATIONAL ASSOCIATION OF THEATRE OWNERS WHO'S NEWS JUDY GIRARD WAS NAMED SENIOR VICE PRESIDENT PROGRAMMING AND PRODUCTION AND GROUP VICE PRESIDENT AT HEARST/ABCVIACOM ENTERTAINMENT SERVICES A JOINT VENTURE OF CAPITAL CITIES/ABC INC VIACOM INC AND HEARST CORP AND PARENT OF CABLE NETWORK LIFETIME TELEVISION NEW YORK MS GIRARD 47 YEARS OLD WAS VICE PRESIDENT OF BROADCASTING FOR WNBCTV IN NEW YORK JAPAN'S SONY CORP NAMED DELL FURANO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS NEW MERCHANDISING DIVISION SONY SIGNATURES BASED IN SAN FRANCISCO MR FURANO FORMERLY OF WINTERLAND PRODUCTIONS OWNED BY MATSUSHITA ELECTRIC INDUSTRIAL'S MCA INC DIRECTED MERCHANDISING FOR CONCERTS OF MANY WELLKNOWN PERFORMERS INCLUDING THE GRATEFUL DEAD THE ROLLING STONES MADONNA AND U2 9307090061 930709 FORD MOTOR TO SPEND 50 MILLION TO BUILD PARTS PLANT IN JAPAN DEARBORN MICH FORD MOTOR CO IN A MOVE TO BOOST SALES OF AUTO COMPONENTS IN JAPAN SAID IT'S INVESTING 50 MILLION TO BUILD A TECHNICAL CENTER NEAR TOKYO THAT WILL DEVELOP AUTO PARTS FOR JAPAN USOWNED AUTO MAKERS AND SUPPLIERS TO THE AUTO MANUFACTURERS ARE TRYING VARIOUS STRATEGIES TO INCREASE SALES OF AUTO COMPONENTS TO JAPANESE AUTO COMPANIES FORD'S TECHNICAL CENTER WHICH WILL OPEN IN MID1995 WILL WORK WITH SUPPLIERS AND AUTO MAKERS TO DEVELOP PRODUCTS SPECIFIC TO THAT MARKET FORD SAID ITS PARTS SALES TO JAPANESE SUPPLIERS ARE ABOUT 300 MILLION ANNUALLY PRIMARILY TO JAPANESE COMPANIES OPERATING IN THE IN THE US SALES TO JAPANESE AUTO MAKERS OPERATING IN THEIR HOME MARKET ARE MINIMAL BUT SHOULD IMPROVE WITH THE NEW CENTER A FORD SPOKESMAN SAID NEARLY TWO YEARS AGO GENERAL MOTORS CORP OPENED A SIMILAR TECHNICAL CENTER IN JAPAN GM SAID ITS COMPONENT SALES HAVE INCREASED 50 SINCE OPENING THE CENTER AND RELATIONS WITH JAPANESE SUPPLIERS ARE IMPROVING GM COMPONENT SALES TO ASIAN COMPANIES COMPANIES WILL REACH 600 MILLION THIS YEAR SEPARATELY FORD SAID IT OPENED A NEW 117 MILLION DEALERSHIP IN KUWAIT FORD'S EXPORTS DECLINED IN 1992 TO 1500 VEHICLES DOWN FROM 4000 VEHICLES IN 1991 FORD SAID WE ARE BEGINNING TO SEE A RECOVERY IN THE MARKET AND EXPECTS EXPORTS TO KUWAIT TO INCREASE IN THE FUTURE 9307090060 930709 ICF KAISER INTERNATIONAL INC FAIRFAX VA ICF KAISER INTERNATIONAL INC SAID MITSUBISHI CORP PURCHASED A 25 EQUITY STAKE IN ICF/EKO A MOSCOW JOINTVENTURE COMPANY THAT PROVIDES ENVIRONMENTAL CONSULTING AND ENGINEERING SERVICES TO THE FORMER SOVIET REPUBLICS THE COMPANY WOULDN'T DISCLOSE TERMS ICF KAISER A CONSULTING ENGINEERING AND CONSTRUCTION FIRM SAID THE MITSUBISHI INVESTMENT IS AN EXTENSION OF AN AGREEMENT SIGNED BY THE TWO COMPANIES IN 1991 IN WHICH THEY AGREED TO PURSUE TOGETHER ENVIRONMENTAL PROJECTS WORLDWIDE ICF KAISER SAID MITSUBISHI'S INFUSION OF EQUIPMENT AND FINANCING INTO THE JOINTVENTURE'S OPERATIONS WOULD COMPLEMENT THE COMPANY'S ENVIRONMENTAL AND ENGINEERING SERVICES 9307090059 930709 SOLO SERVE CORP'S SALES SAN ANTONIO TEXAS SOLO SERVE CORP SAID COMPARABLESTORE SALES IN THE FIVEWEEK PERIOD ENDED SATURDAY DECLINED 09 TOTAL SALES INCREASED 151 TO 156 MILLION FROM 136 MILLION A YEAR AGO THE OFFPRICE RETAILER SAID 9307090058 930709 TECK WILL SELL MANNVILLE SHARES VANCOUVER BRITISH COLUMBIA TECK CORP SAID IT AGREED WITH UNDERWRITERS TO SELL ABOUT 76 MILLION SHARES OF MANNVILLE OIL & GAS LTD THAT TECK WILL RECEIVE IN A TAKEOVER DEAL TECK IS A MINING CONCERN AND MANNVILLE IS A CALGARY ALBERTA OIL AND GAS CONCERN BASED ON YESTERDAY'S CLOSING PRICE OF MANNVILLE'S STOCK TECK WOULD RAISE ABOUT 512 MILLION CANADIAN DOLLARS US399 MILLION FROM THE SALE TECK WILL RECEIVE THE MANNVILLE SHARES AS PART OF AN AGREEMENT TO TENDER 126 MILLION SHARES OF TRILOGY RESOURCES CORP TO A TAKEOVER BID BY MANNVILLE MANNVILLE WILL PAY 06 OF ONE OF ITS SHARES FOR EACH TRILOGY SHARE TENDERED TRILOGY IS ALSO A CALGARY OIL AND GAS CONCERN TECK CLASS B SHARES YESTERDAY CLOSED AT C20875 DOWN 0625 CANADIAN CENT ON THE TORONTO STOCK EXCHANGE MANNVILLE'S SHARES CLOSED AT C675 DOWN 50 CANADIAN CENTS 9307090057 930709 BUSINESS BRIEF PSA PEUGEOT CITROEN SA FRENCH GROUP RENEGOTIATES WORK SCHEDULES AT A PLANT FRENCH AUTO GROUP PSA PEUGEOT CITROEN SA IS RENEGOTIATING WORK SCHEDULES AT ITS POISSY PLANT IN FRANCE IN VIEW OF THE SHARP FALLOFF IN AUTO SALES A PEUGEOT SPOKESMAN SAID THE COMPANY HAD MANAGED TO NEGOTIATE A MORE FLEXIBLE WORK SCHEDULE WITH THE UNIONS A FEW YEARS AGO TO MAKE IT POSSIBLE TO RUN THE PLANT MORE HOURS FOR A MAXIMUM PRODUCTION CAPACITY OF 1500 CARS A DAY BUT THE SPOKESMAN SAID THAT WITH PRODUCTION AT ONLY 1200 CARS A DAY THE UNIONS HAD ASKED TO RETURN TO AN EIGHTHOUR DAY FIVEDAYSAWEEK SCHEDULE THE SHIFTS CURRENTLY WORK A 10HOUR DAY FOURDAYSAWEEK SCHEDULE THE PLANT HASN'T ACTUALLY REACHED ITS MAXIMUM PRODUCTION LEVEL UNDER THE NEW SCHEDULE FRENCH AUTO SALES HAVE FALLEN OFF SHARPLY IN THE PAST TWO YEARS THE SPOKESMAN STRESSED THAT A CHANGE DOESN'T MEAN THE PLANT WILL LOSE THE FLEXIBILITY IT HAD NEGOTIATED PREVIOUSLY WHEN TIMES IMPROVE 9307090056 930709 BUSINESS BRIEF BRITISH AEROSPACE PLC FIVEYEAR REFINANCING PLAN FOR BANK DEBT IS ANNOUNCED BRITISH AEROSPACE PLC ANNOUNCED A 14 BILLION 209 BILLION FIVEYEAR REVOLVINGCREDIT PACKAGE TO REFINANCE BANK DEBT AND EXTEND ITS MATURITY BRITISH AEROSPACE SAID THE ARRANGEMENT WILL ALLOW IT TO CONTINUE REFOCUSING ON ITS CORE BUSINESSES OF DEFENSE AEROSTRUCTURES MOTOR VEHICLES AND COMMERCIAL AIRCRAFT THROUGH JOINT VENTURES GREATER FLEXIBILITY HAS BEEN THE OBJECTIVE SAID RICHARD LAPTHORNE FINANCE DIRECTOR THE SYNDICATED FACILITY IS BEING ARRANGED BY BARCLAYS SYNDICATIONS LLOYDS BANK CAPITAL MARKETS GROUP MIDLAND BANK PLC AND NATWEST CAPITAL MARKETS LTD IT HAS BEEN UNDERWRITTEN BY THE ARRANGING BANKS PLUS BAYERISCHE LANDESBANK GIROZENTRALE CITIBANK NA MORGAN GUARANTY TRUST CO OF NEW YORK ROYAL BANK OF CANADA THE BANK OF NOVA SCOTIA AND THE SUMITOMO BANK LTD 9307090055 930709 INTERNATIONAL BRIEF SOCIETE GENERALE CHAIRMAN IS STILL CONFIDENT PROFIT IN '93 WILL MATCH '92 SOCIETE GENERALE'S CHAIRMAN AND CHIEF EXECUTIVE MARC VIENOT SAID HE REMAINS CONFIDENT THAT NET INCOME AT THE FRENCH BANK IN 1993 WILL BE STEADY WITH 1992'S NET OF 327 BILLION FRANCS 5658 MILLION DESPITE THE RECESSION IN FRANCE IN AN INTERVIEW IN NEW YORK MR VIENOT SAID STRONG PERFORMANCES IN SOCIETE GENERALE'S FOREIGN WHOLESALE BANKING OPERATIONS AND IN ITS CREDIT MARKET OPERATIONS WILL COMPENSATE FOR THE GENERALLY WEAK DOMESTIC BANKING ENVIRONMENT MR VIENOT WAS IN NEW YORK TO ANNOUNCE A LEVEL ONE PROGRAM OF UNLISTED AMERICAN DEPOSITARY RECEIPTS A SPOKESMAN SAID THE ADRS ARE A FIRST STEP TOWARD THE EVENTUAL LISTING OF ITS SHARES IN THE US SOCIETE GENERALE WHICH IS LISTED ON THE PARIS BOURSE WILL ISSUE ADRS ON AN ASNEEDED BASIS AT A RATIO OF FIVE ADRS FOR EACH SOCIETE GENERALE SHARE LISTED IN PARIS THE SPOKESMAN SAID 9307090054 930709 BUSINESS BRIEF COSMETIC CENTER INC EXECUTIVE IS COMFORTABLE' WITH PROFIT RISE ESTIMATES COSMETIC CENTER INC'S CHIEF FINANCIAL OFFICER BRUCE STROHL SAYS HE IS VERY COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY EARNED 15 CENTS TO 16 CENTS A SHARE IN ITS THIRD QUARTER ENDED JUNE 25 UP FROM 13 CENTS A SHARE A YEAR EARLIER THE SAVAGE MD COMPANY HAD AN AVERAGE OF ABOUT 42 MILLION SHARES OUTSTANDING IN THE LATEST QUARTER UP FROM 39 MILLION A YEAR EARLIER MR STROHL SAID IN AN INTERVIEW THE INCREASE REFLECTS THE COMPANY'S SALE OF 1125000 SHARES IN APRIL OF 1992 MR STROHL SAID THE COMPANY'S CONSOLIDATED RETAIL SALES ROSE ABOUT 11 DURING THE FIRST TWO MONTHS OF THE LATEST THIRD QUARTER AND HE ESTIMATED THAT CONSOLIDATED RETAIL SALES WERE UP ABOUT THE SAME AMOUNT FOR THE QUARTER AS A WHOLE MR STROHL SAID THE COMPANY EXPECTS TO REPORT ITS JUNE SALES NEXT WEEK AND ITS THIRDQUARTER RESULTS ON JULY 21 9307090053 930709 BUSINESS BRIEF ACCLAIM ENTERTAINMENT INC NET INCOME NEARLY DOUBLED IN COMPANY'S THIRD QUARTER ACCLAIM ENTERTAINMENT INC REPORTED A NEAR DOUBLING OF NET INCOME AND RECORD REVENUE FOR ITS FISCAL THIRD QUARTER LARGELY ATTRIBUTABLE TO ITS EXPANDING VIDEOGAME BUSINESS THE OYSTER BAY NY PUBLISHER OF VIDEOGAME SOFTWARE HAD NET INCOME OF 49 MILLION OR 17 CENTS A SHARE FOR THE QUARTER ENDED MAY 31 UP 93 FROM 25 MILLION OR 10 CENTS A SHARE A YEAR EARLIER THE AVERAGE NUMBER OF SHARES OUTSTANDING ROSE TO 292 MILLION IN THE QUARTER FROM 259 MILLION IN THE YEAREARLIER PERIOD REVENUE ROSE 24 TO 569 MILLION COMPARED WITH 46 MILLION A YEAR EARLIER FOR THE NINE MONTHS EARNINGS ROSE 89 TO 166 MILLION OR 57 CENTS A SHARE FROM 88 MILLION OR 37 CENTS A SHARE REVENUE ROSE 51 TO 2073 MILLION FROM 1372 MILLION SEPARATELY ACCLAIM SAID IT REACHED AGREEMENTS IN PRINCIPLE WITH ITS LEAD BANKS TO INCREASE ITS COMBINED WORKING CAPITAL ADVANCE AND LETTER OF CREDIT FACILITIES TO 160 MILLION 9307090052 930709 DIVIDEND NEWS HERBALIFE INTERNATIONAL INC HERBALIFE INTERNATIONAL INC SAID ITS BOARD REVISED ITS RECENTLY DECLARED QUARTERLY DIVIDEND RAISING IT BY 71 TO 12 CENTS A SHARE FROM SEVEN CENTS A SHARE THE DIVIDEND IS PAYABLE AUGUST 2 TO STOCK OF RECORD JULY 19 THE UNUSUAL STEP COMES IN THE WAKE OF A LONG STRING OF QUARTERLY SALES INCREASES IN JANUARY THE INGLEWOOD CALIF MAKER OF HEALTH AND NUTRITION PRODUCTS RAISED THE PAYOUT TO SEVEN CENTS A SHARE FROM FOUR CENTS A SHARE 9307090051 930709 BUSINESS BRIEF WARNACO GROUP INC VF AND UNIT SUED IN DISPUTE ON SALES IN SPAIN PORTUGAL WARNACO GROUP INC SUED VF CORP WYOMISSING PA AND ITS SPANISH SUBSIDIARY FOR MORE THAN 45 MILLION ALLEGING THAT VF CONSPIRED TO DESTROY WARNACO'S INTIMATEAPPAREL BRAND IN SPAIN AND PORTUGAL THE SUIT FILED IN FEDERAL COURT IN MANHATTAN CHARGED THAT THE SUBSIDIARY VIVES VIDAL SA OR VIVESA WHICH VF ACQUIRED IN LATE 1992 HAD FAILED TO FULFILL CONTINUING MARKETING AND SALES OBLIGATIONS TO WARNACO VIVESA AND NEW YORKBASED WARNACO HAD A THREEDECADE LICENSING RELATIONSHIP WHICH THEY HAD AGREED TO CONTINUE THROUGH 1993 WARNACO CHARGED THAT AFTER THE ACQUISITION VIVESA SUBSTITUTED VF GARMENTS FOR WARNER'S GARMENTS AT RETAIL AND MISINFORMED RETAILERS THAT THE LINE WAS BEING DISCONTINUED A VF CORP SPOKESWOMAN DECLINED TO COMMENT ON THE CHARGES 9307090050 930709 BUSINESS BRIEF LOYOLA CAPITAL CORP FINANCE CHIEF SAYS ESTIMATE OF PROFIT IS WITHIN REASON' LOYOLA CAPITAL CORP'S CHIEF FINANCIAL OFFICER JAMES MCAVENEY SAID AN ANALYST'S ESTIMATE THAT THE COMPANY EARNED 35 CENTS A SHARE IN THE SECOND QUARTER IS WITHIN REASON THE ESTIMATE CARRIED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM IS IN LINE WITH THE 35 CENTS A SHARE THE COMPANY EARNED IN LAST YEAR'S SECOND QUARTER LOYOLA PLANS TO REPORT ITS 1993 SECONDQUARTER RESULTS ON JULY 20 MR MCAVENEY SAID LOYOLA'S NET INTEREST MARGIN DURING THE SECOND QUARTER WAS PROBABLY CLOSE TO THE 366 PERCENTAGEPOINT LEVEL OF THE FIRST QUARTER ALTHOUGH THE EXACT FIGURE ISN'T YET AVAILABLE GOING FORWARD HOWEVER HE EXPECTS LOYOLA'S NET INTEREST MARGIN TO DECLINE AS HOMEOWNERS CONTINUE TO REPLACE VARIABLERATE MORTGAGES WITH FIXEDRATE MORTGAGES MOST OF WHICH LOYOLA SELLS IN THE SECONDARY MARKET LOYOLA ORIGINATED 1 BILLION IN LOANS IN 1992 WITH MORTGAGES REPRESENTING 8761 MILLION OF THAT AMOUNT THIS YEAR THE COMPANY EXPECTS TO ORIGINATE MORE THAN 1 BILLION IN LOANS MR MCAVENEY SAID 9307090049 930709 SALEM TO REPLACE THREE DIRECTORS TO SETTLE LAWSUIT BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH SALEM CORP AN ENGINEERING COMPANY HEADED BY VICTOR POSNER WILL REPLACE THREE DIRECTORS TWO OF THEM POSNER RELATIVES ACCORDING TO PEOPLE CLOSE TO SALEM AS PART OF THE SETTLEMENT OF A SHAREHOLDER LAWSUIT IN A PROXY STATEMENT SALEM SAID STEVEN POSNER 50 VICTOR'S SON AND SALEM SENIOR VICE PRESIDENT AND WILLIE ROBINSON 58 A CONSULTANT WILL LEAVE THE BOARD SALEM DID NOT NAME THE THIRD DEPARTING DIRECTOR BUT A PERSON FAMILIAR WITH THE COMPANY SAID THE DIRECTOR IS A POSNER RELATIVE THAT PERSON WILL BE ANNOUNCED AT SALEM'S JULY 16 ANNUAL MEETING FOUR OF THE BOARD'S 13 MEMBERS OTHER THAN VICTOR ARE POSNERS BERNARD POSNER 76 MARTIN POSNER 45 AND TRACY POSNER 31 ALL OF WHOM ARE EMPLOYED BY OTHER COMPANIES THE 1989 LAWSUIT BROUGHT BY PLAINTIFFS INCLUDING BEVERLY HILLS CALIF FINANCIER EDWARD MARSHALL ALLEGED SALEM OVERPAID VICTOR POSNER A MIAMI BEACH FLA FINANCIER MR POSNER WAS PAID 490000 A YEAR FROM 1990 TO 1992 UNDER THE SETTLEMENT MR POSNER IS NOW SUBJECT TO COMPENSATION LIMITS THOUGH THE AMOUNT HASN'T BEEN DISCLOSED THE SUIT ALSO ALLEGED SALEM PAID EXCESSIVE INSURANCE PREMIUMS TO ESSEX INSURANCE CO BERMUDA IN WHICH MR POSNER HELD A 30 STAKE AND COMPLAINED THAT MR POSNER HAD FAILED TO HOLD ANNUAL MEETINGS FROM 1986 THROUGH 1988 A SALEM SPOKESMAN CONFIRMED THAT THE COMPANY DID NOT HOLD ANNUAL MEETINGS IN THOSE YEARS BUT THAT IT HAS SINCE 1988 AND ADDED THAT MR POSNER WHO OWNS 492 OF SHARES OUTSTANDING REMAINS CHAIRMAN AND CEO THE SETTLEMENT NAMES THREE NOMINEES FOR DIRECTOR LEO WALLBERG 60 A REAL ESTATE AND FINANCIAL CONSULTANT ALEXANDER STUART 72 A RETIRED EXECUTIVE OF A CANADIAN METALS FIRM AND PHILIP SMITH 66 CHAIRMAN OF A BANK CONSULTING CONCERN PITTSBURGHBASED SALEM DESIGNS AND BUILDS FURNACES FOR METAL INDUSTRIES AND OTHER EQUIPMENT FOR METAL AND COAL INDUSTRIES IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY SALEM SHARES ROSE 25 CENTS TO 1750 9307090048 930709 WHAT'S NEWS BUSINESS AND FINANCE STOCKS RALLIED SPARKED BY A SURGE IN BOND PRICES THE DOW JONES INDUSTRIAL AVERAGE SHOT UP 3875 POINTS TO 351442 BOND PRICES WERE BOOSTED BY FALLING GOLD AND OIL PRICES AS WELL AS OTHER COMMODITY PRICES WHICH EASED INFLATION FEARS THE TREASURY 30YEAR BENCHMARK'S PRICE ROSE OVER 1/4 POINT ITS YIELD FELL TO 665 FRANKFURT STOCKS SOARED 37 TO THEIR HIGHEST LEVEL IN MORE THAN A YEAR ON PERCEPTIONS THAT GERMANY'S SHORTTERM RATES WILL CONTINUE TO FALL AND THAT ITS RECESSION MAY HAVE HIT BOTTOM CONSUMER DEBT IS RISING AGAIN DESPITE A STEADY DECLINE IN CONFIDENCE ABOUT THE ECONOMY AND JOB PROSPECTS THE DEBT LOAD HAS BEEN GROWING AT A FAIRLY STRONG CLIP SINCE DECEMBER THOUGH IT FELL IN MAY DUE TO A STATISTICAL QUIRK DISCOUNTING THE GLITCH THE DEBT LOAD POSTED THE 10TH RISE IN A ROW BIG RETAILERS REPORTED MIXED SALES RESULTS FOR JUNE AS CONSUMERS CONCENTRATED PURCHASING ON HOME GOODS AND STEERED CLEAR OF APPAREL UNDERSCORING THEIR CAUTIOUSNESS ABOUT SPENDING SEARS AND JC PENNEY REPORTED RESPECTABLE GAINS WHILE GAP AND LIMITED HAD DISAPPOINTING RESULTS EURO DISNEY POSTED A LARGERTHANEXPECTED THIRDQUARTER LOSS OF 865 MILLION LEADING IT AND WALT DISNEY WHICH OWNS 49 TO REASSESS THE RESORT'S FINANCIAL STRUCTURE AND DEVELOPMENT PLANS EURO DISNEY'S SHARES FELL 13 IN PARIS WHILE DISNEY'S SHARES WERE UNCHANGED IN NEW YORK GM'S STOCK ROSE 225 OR 5 TO 46875 A 52WEEK HIGH GM LED A SURGE OF THE BIG THREE AUTO MAKERS' SHARES AS INVESTORS GAMBLED THAT CARS WILL SELL WELL DESPITE THE OVERALL ECONOMY STRONG JUNE SALES ROBUST PRODUCTION SCHEDULES AND ANTICIPATED HEALTHY QUARTERLY RESULTS HELPED THE STOCKS USAIR CUT ITS FARES ON CERTAIN ROUTES FOR TRAVEL THROUGH DEC 15 AND DIDN'T SET A DEADLINE FOR WHEN THE TICKETS MUST BE PURCHASED ALL MAJOR CARRIERS MATCHED USAIR'S DISCOUNT THE NEW PRICES ARE HIGHER THAN RECENT 30OFF SUMMER FARES AS WELL AS THE FARES USAIR CHARGED LAST FALL SALOMON BROTHERS' LEO HIGDON WHO COHEADED THE FIRM'S GLOBAL INVESTMENTBANKING UNIT RESIGNED TO BECOME DEAN OF A BUSINESS SCHOOL HIS DEPARTURE COMPLETES THE PARING OF MANAGEMENT IN PLACE BEFORE THE 1991 TREASURYAUCTION BIDDING SCANDAL CHARLES KEATING JR WAS SENTENCED TO 12 1/2 YEARS IN PRISON FOR BANK FRAUD KEATING'S SENTENCE WILL RUN CONCURRENTLY WITH A 10YEAR PENALTY THAT HE HAS ALREADY BEGUN SERVING US SHOE SAID IT EXPECTS A SUBSTANTIAL LOSS FOR THE QUARTER ENDING JULY 31 AS A RESULT OF A POOR PERFORMANCE BY ITS APPAREL UNIT AND A CHARGE THE COMPANY ALSO REPORTED RETAIL SALES WERE DOWN 48 IN JUNE FROM A YEAR AGO SUBARU OF AMERICA NAMED A NEW PRESIDENT AND ANNOUNCED PLANS FOR LAYOFFS AT THE CAR MAKER A UNIT OF JAPAN'S FUJI HEAVY INDUSTRIES WARNERLAMBERT EXPECTS TO SETTLE WITH THE FDA SOON AND INDICATED THAT THE ACCORD MAY CUT EARNINGS THE SETTLEMENT WOULD AIM AT RESOLVING PROBLEMS UNCOVERED AT THE DRUG MAKER'S PLANTS PRINCIPALLY IN PUERTO RICO BONDS LEHMAN BROTHERS TREASURY INDEX 529905 UP 1374 COMMODITIES OIL 1779 A BARREL OFF 23 CENTS DOW JONES FUTURES INDEX 12728 UP 006 SPOT INDEX 12519 OFF 030 DOLLAR 10855 YEN UP 090 17023 MARKS OFF 00042 9307090047 930709 INTERNATIONAL LANDMARK POOL IN PARIS TAKES A DIVE IN THE SEINE PARIS AP THE FLOATING SWIMMING POOL THAT HAS BEEN A PARIS LANDMARK FOR TWO CENTURIES SANK INTO THE SEINE RIVER THE PISCINE DELIGNY CONSTRUCTED ON 12 CONNECTED BARGES BROKE AWAY FROM ITS SUPPORTS YESTERDAY AND SANK 12 FEET TO THE RIVERBED AUTHORITIES SAID A BARGE AT ONE END WHICH SUPPORTED THE POOL'S OFFICES BROKE AWAY FROM ITS MOORINGS AND SANK FIRST THAT CAUSED THE POOL COMPLEX TO COLLAPSE INTO THE RIVER NO ONE WAS HURT POOL DIRECTOR FREDERIC TELL SAID THE POOL WAS PROBABLY LOST IT'S TOO BIG TO BE BROUGHT TO THE SURFACE AND USED AGAIN AS A POOL HE SAID THE PISCINE DELIGNY ALONG THE SEINE'S LEFT BANK NEAR THE ORSAY MUSEUM WAS BUILT IN 1785 AND RENOVATED IN 1842 AND AGAIN RECENTLY NAMED FOR THE LIFEGUARD WHO OPENED THE CITY'S FIRST SWIMMING SCHOOL THE POOL WAS A POPULAR SUMMER SUNBATHING SPOT ON WEDNESDAY 1300 PEOPLE HAD GONE TO THE POOL MANY REGULAR CUSTOMERS WERE DISTRESSED BY THE ACCIDENT I'VE BEEN SWIMMING HERE IN NICE WEATHER SINCE 1926 SAID ROBERT LEROY 87 YEARS OLD 9307090046 930709 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY BENEFIT PLANS THROUGH THE AGES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL MOST PEOPLE IN THEIR 20S AND 30S PROBABLY KNOW MORE ABOUT OFFICE GOSSIP THAN THEY DO ABOUT THEIR COMPANIES' BENEFIT PLANS THAT'S NOT SURPRISING BECAUSE YOUNGER WORKERS ARE USUALLY IN GOOD HEALTH HAVE FEWER RESPONSIBILITIES AND THINK THAT RETIREMENT IS TOO FAR AWAY TO WORRY ABOUT BUT YOUNGER EMPLOYEES CAN GET AN INSTANT PAYOFF IN TAX SAVINGS AND OTHER REWARDS FROM TAKING ADVANTAGE OF WHAT THEIR EMPLOYERS OFFER FOR EXAMPLE ENROLLING IN A 401K RETIREMENT SAVINGS PLAN AND MAKING CONTRIBUTIONS OF EVEN AS LITTLE AS 50 A MONTH CAN MAKE A BIG DIFFERENCE QUICKLY NOT ONLY ARE YOU FEATHERING YOUR NEST FOR THAT DISTANT DAY WHEN YOU RETIRE YOU ARE GIVING YOURSELF AN IMMEDIATE PAYOFF AT TAX TIME BECAUSE THE MONEY CONTRIBUTED LOWERS YOUR TAXABLE INCOME IN ADDITION MANY EMPLOYERS KICK IN 50 CENTS TO 1 FOR EVERY DOLLAR AN EMPLOYEE SAVES UP TO A CERTAIN AMOUNT THAT'S LIKE GETTING AN INSTANT 50 TO 100 RETURN ON YOUR INVESTMENT AND TAXFREE COMPOUNDING OVER TIME WILL MAKE YOUR SMALL STASH GROW QUICKLY EVEN IF YOU CAN AFFORD ONLY 1 TO 2 OF YOUR PAY IT'S WELL WORTH IT SAYS MICHAEL HAYES AN ACTUARY WITH BENEFITS CONSULTING FIRM HEWITT ASSOCIATES IN LINCOLNSHIRE ILL IF YOU'RE WORRIED ABOUT LOCKING THE MONEY UP UNTIL RETIREMENT CONSIDER THIS MOST PLANS ALLOW YOU TO BORROW AS MUCH AS 50 OF THE ACCOUNT BALANCE AND PAY YOURSELF BACK SO THE MONEY WILL BE THERE IF YOU NEED HELP WITH THE DOWN PAYMENT ON A HOME WHEN IT COMES TO SPECIFYING HOW YOU WANT THE MONEY IN YOUR EMPLOYERSPONSORED RETIREMENT PLAN INVESTED FINANCIAL ADVISERS SAY YOU SHOULD BE AGGRESSIVE IN YOUR 20S AND 30S YOU HAVE DECADES UNTIL RETIREMENT SO YOU CAN AFFORD TO HAVE MORE OF YOUR MONEY IN STOCK INVESTMENTS WHICH GIVE YOU THE BEST CHANCE OF STAYING AHEAD OF INFLATION OVER THE LONG HAUL EMPHASIZE GROWTH STOCK FUNDS AGGRESSIVE GROWTH STOCK FUNDS AND INTERNATIONAL FUNDS INVESTMENT ADVISERS SAY TO SMOOTH THE RIDE CHOOSE SOME BALANCED FUNDS WHICH ALSO CONTAIN BONDS TRY NOT TO GET OVERWEIGHTED IN YOUR EMPLOYER'S STOCK BECAUSE YOU NEED TO DIVERSIFY YOUR HOLDINGS AND DON'T TRY TO PLAY THE MARKET YOU'LL HAVE BETTER LUCK IF YOU CHOOSE A PLAN AND STICK WITH IT EVEN THE PROS DON'T HAVE MUCH SUCCESS WITH MARKET TIMING A YOUNGER EMPLOYEE SHOULD BE SURE TO SET UP A MEDICAL REIMBURSEMENT ACCOUNT IF THERE IS THE CHANCE TO DO SO ALSO CALLED A MEDICAL SPENDING ACCOUNT A SETASIDE ACCOUNT OR A FLEXIBLE SAVINGS ACCOUNT THIS BENEFIT LETS YOU SAVE PRETAX DOLLARS TYPICALLY AS MUCH AS 2000 OR 3000 A YEAR TO PAY FOR UNREIMBURSED MEDICAL EXPENSES THIS MAY INCLUDE THE DEDUCTIBLE PORTION OF YOUR MEDICAL BILLS AND ANY UNCOVERED EXPENSE SUCH AS ROUTINE PHYSICALS EYE EXAMS AND CONTACT LENSES MONEY CONTRIBUTED IS FREE FROM FEDERAL SOCIAL SECURITY AND MEDICARE TAX AND FROM STATE INCOME TAX EXCEPT IN PENNSYLVANIA AND NEW JERSEY IF YOUR COMBINED TAX RATE IS 40 YOUR TAKEHOME PAY WOULD BE REDUCED ONLY 60 CENTS FOR EVERY DOLLAR YOU HAVE DEDUCTED DEPENDENT CARE ACCOUNTS ENABLE WORKING COUPLES AND SINGLE PARENTS TO HAVE UP TO 5000 PER FAMILY DEDUCTED FROM THEIR PAYCHECKS ANNUALLY TO COVER THE COST OF BABYSITTING DAYCARE SUMMER CAMP PRESCHOOL AND AFTERSCHOOL CARE FOR CHILDREN UNDER AGE 13 AND THE COST OF CARE FOR A DEPENDENT ELDER LIKE MEDICAL REIMBURSEMENT ACCOUNTS MONEY SET ASIDE IS FREE FROM FEDERAL AND IN MOST CASES FROM STATE TAXES IF YOU HAVE A CHOICE BETWEEN A MEDICAL PLAN WITH HIGH DEDUCTIBLES AND ONE WITH LOW DEDUCTIBLES YOU MAY BE BETTER OFF CHOOSING THE ONE WITH HIGHER DEDUCTIBLES IN SOME INSTANCES SAYS MR HAYES IF YOUR EMPLOYER PROVIDES A MEDICAL REIMBURSEMENT ACCOUNT AND CONTRIBUTES MONEY TO IT ON YOUR BEHALF THEN YOU'LL USUALLY COME OUT AHEAD EVEN IF YOU CHOOSE THE PLAN WITH A HIGHER DEDUCTIBLE READING THROUGH YOUR BENEFITS BOOKLET MAY BE LESS FUN THAN CLEANING THE REFRIGERATOR BUT UNDERSTANDING YOUR OPTIONS WILL NOT ONLY PAY OFF FINANCIALLY BUT MAKE YOU A MUCH SOUGHTAFTER PERSON AT THE WATER COOLER AND POSSIBLY A BORE BUT THERE'S A DOWNSIDE TO EVERYTHING LIKE YOUNGER EMPLOYEES PEOPLE IN THEIR 40S AND 50S CAN CUT TAXES BY TAKING ADVANTAGE OF VALUABLE CHILDCARE AND MEDICAL REIMBURSEMENT ACCOUNTS BEYOND THAT THEY SHOULD FOCUS ON USING THEIR BENEFITS PLANS TO BUILD SECURITY FOR THEIR FAMILY AND THEIR RETIREMENT YEARS TAKE ADVANTAGE OF THESE PEAK EARNING YEARS TO CRAM AS MUCH MONEY AS YOU CAN INTO YOUR EMPLOYER'S RETIREMENT SAVINGS PLAN THE MONEY WILL GROW TAXDEFERRED UNTIL YOU TAKE IT OUT EVEN YEARS AFTER YOU RETIRE A TYPICAL LIMIT IS 6 OF SALARY UP TO 8994 THIS YEAR IF YOU CAN AFFORD IT FINANCIAL ADVISERS SUGGEST ALSO MAKING AFTERTAX CONTRIBUTIONS IF YOU THINK YOU CAN'T AFFORD TO SAVE MORE BECAUSE YOU'RE STILL PUTTING THE KIDS THROUGH SCHOOL FOR EXAMPLE RECONSIDER THIS IS YOUR LAST CHANCE TO FUND YOUR PLAN TAP OTHER SOURCES TO PAY TUITION COSTS SUCH AS HOMEEQUITY LOANS IF YOU REALLY NEED MONEY FROM YOUR PLAN BEFORE RETIREMENT DON'T WITHDRAW IT THAT WOULD SUBJECT THE MONEY TO INCOME TAXES AND A 10 PENALTY IF YOU'RE UNDER AGE 59 1/2 WHICH TOGETHER WOULD ERASE NEARLY HALF THE VALUE OF THE MONEY INSTEAD TAKE A LOAN FROM YOUR PLAN YOU CAN USUALLY BORROW AS MUCH AS HALF OF THE MONEY IN THE PLAN UP TO 50000 YOU PAY YOURSELF BACK PLUS INTEREST AT A LOW RATE OVER A PERIOD OF SEVERAL YEARS AT THIS AGE PEOPLE SHOULD INVEST FOR BOTH SAFETY AND GROWTH YOUR INSTINCTS MAY BE TO CHOOSE ONLY CONSERVATIVE INVESTMENTS SUCH AS CASH GOVERNMENT BONDS OR FIXED ACCOUNTS BUT FINANCIAL PROS URGE THAT YOU RESIST THE TEMPTATION UNLESS YOU CONFOUND THE ACTUARIAL ODDS BY GETTING HIT BY A TRUCK YOU'VE GOT DECADES AHEAD OF YOU PLACE AT LEAST A QUARTER OF YOUR INVESTMENT MONEY IN STOCK FUNDS SO YOUR PRINCIPAL WON'T BE ERODED BY INFLATION INVESTMENT ADVISERS SAY REDUCE RISK BY DIVERSIFYING AMONG DIFFERENT TYPES OF STOCK FUNDS INCLUDING THOSE SUCH AS EQUITYINCOME GROWTHANDINCOME AND BALANCED FUNDS THAT ARE LESS VOLATILE THAN PURE GROWTH STOCK FUNDS PEOPLE IN THEIR 40S AND 50S SHOULD ALSO REVIEW THEIR MEDICAL COVERAGE THE NEWER FLEXIBLE BENEFITS OR FLEX PLANS TYPICALLY OFFER TWO LEVELS OF MEDICAL COVERAGE A LOWDEDUCTIBLE OPTION WITH DEDUCTIBLES OF ABOUT 200 FOR AN INDIVIDUAL AND 400 FOR A FAMILY BUT IT MAY MAKE MORE SENSE FOR MIDDLEAGE EMPLOYEES TO CHOOSE THE HIGHERDEDUCTIBLE OPTION SAYS MARY RIEBOLD A MANAGING DIRECTOR AT WILLIAM MERCER INC WHILE THE DEDUCTIBLE MAY BE 1000 THIS IS SOMETHING MANY PEOPLE WITH HIGHER INCOMES CAN AFFORD MEANWHILE CHOOSING THIS OPTION WILL LOWER THE MONTHLY COST OF COVERAGE THEY ARE CHARGED IN THEIR PLAN THE CREDITS THEY SAVE CAN BE USED TOWARD RETIREMENT SAVINGS OR TO PAY FOR LONGTERM CARE COVERAGE WHICH IS OFFERED BY A GROWING NUMBER OF COMPANIES YOU SHOULD ALSO REVIEW YOUR DISABILITY INSURANCE IF YOU BECOME DISABLED WHETHER THROUGH ACCIDENT ILLNESS OR A COMPLICATED PREGNANCY MANY COMPANIES WILL AUTOMATICALLY PAY AS MUCH AS 100 OF SALARY FOR THREE TO SIX MONTHS THEREAFTER LONGTERM DISABILITY KICKS IN IF YOU HAVE THE COVERAGE SOME COMPANIES REQUIRE THAT YOU PAY FOR A PERCENTAGE OF THE PREMIUMS OFTEN THROUGH PAYROLL DEDUCTION THESE ARE USUALLY LOW AND HAVING SOME COVERAGE IS WORTH IT IF YOU HAVE A CHOICE BETWEEN PAYING FOR PREMIUMS WITH PRETAX OR AFTERTAX DOLLARS IT MAKES MORE SENSE TO PAY WITH AFTERTAX DOLLARS THAT WAY IF YOU BECOME DISABLED YOUR BENEFIT WILL BE RECEIVED TAXFREE DO YOU HAVE ENOUGH LIFE INSURANCE MANY COMPANIES PAY THE EQUIVALENT OF ONE TO TWO YEARS' SALARY BUT GIVE EMPLOYEES THE OPTION OF PURCHASING EXTRA TERMLIFE INSURANCE THROUGH THEIR FLEX PLANS OPTIONAL TERM INSURANCE AT COMPETITIVE RATES CAN BE A GOOD DEAL SAYS MICHAEL HAYES THE ACTUARY AT HEWITT ASSOCIATES JUST MAKE SURE YOUR EMPLOYER CHARGES AGEGRADED PREMIUMS OR ELSE YOU COULD END UP PAYING HIGHER RATES THAN YOU COULD GET ON YOUR OWN OUTSIDE THE PLAN HE SAYS TO MAKE SURE THE SOCIAL SECURITY ADMINISTRATION IS KEEPING TRACK OF YOUR CONTRIBUTIONS CONTACT YOUR LOCAL OFFICE AND ASK FOR FORM 7004 REQUEST FOR EARNINGS AND BENEFIT ESTIMATE STATEMENT OR CALL 18007721213 SIX WEEKS AFTER SENDING IT IN YOU'LL RECEIVE VERIFICATION OF WAGE INFORMATION ERRORS CAN BE CORRECTED ONLY IF CAUGHT WITHIN THREE YEARS YOU'D THINK A LIFETIME OF EMPLOYMENT WOULD MAKE IT EASIER FOR PEOPLE NEARING RETIREMENT TO HANDLE DECISIONS ABOUT THEIR COMPANY BENEFITS PLANS DREAM ON LIKE EVERYONE ELSE OLDER EMPLOYEES HAVE WATCHED THEIR PLANS CHANGE RAPIDLY AND THE TAX LAWS EVOLVE CHANGING THE GROUND RULES THEY GOT USED TO BUT UNLIKE YOUNGER EMPLOYEES THOSE IN THEIR 60S DON'T HAVE THE LUXURY OF DECADES OF EMPLOYMENT TO RECOVER FROM THE WRONG DECISIONS POOR CHOICES IN THE FINAL YEARS OF FULLTIME EARNINGS COULD LEAD YOU TO PAY TENS OF THOUSANDS OF DOLLARS MORE IN TAXES AND TO LOSING SOME SOCIAL SECURITY AND MEDICAL COVERAGE IF YOU'RE CONSIDERING AN EARLY RETIREMENT OFFER FOR INSTANCE MAKE SURE A GUARANTEE OF MEDICAL COVERAGE IS BUILT IN SAYS STEPHEN J PENNACCHIO A PARTNER IN BENEFITS AT KPMG PEAT MARWICK IN NEW YORK EMPLOYERPROVIDED RETIREE MEDICAL COVERAGE IS BECOMING A THING OF THE PAST HE SAYS WHILE OLDER WORKERS ARE MORE LIKELY THAN YOUNGER EMPLOYEES TO RECEIVE SOME FORM OF RETIREE MEDICAL COVERAGE THEY CAN'T COUNT ON IT EMPLOYEES WHO MIGHT FIND THEMSELVES OUT OF A JOB BEFORE AGE 63 1/2 NEED TO BE ESPECIALLY CAUTIOUS MEDICARE THE GOVERNMENT COVERAGE YOU'VE PAID FOR THROUGH PAYROLL TAXES DOESN'T KICK IN UNTIL AGE 65 IF YOU LOSE YOUR JOB YOUR EMPLOYER IS REQUIRED TO LET YOU PAY FOR YOUR GROUP MEDICAL PLAN COVERAGE AT COST PLUS 2 FOR 18 MONTHS THIS TYPICALLY COSTS 3500 TO 5000 FOR A FAMILY AFTER THIS COVERAGE RUNS OUT YOU'RE ON OUR OWN THINK SERIOUSLY ABOUT WHEN TO START COLLECTING SOCIAL SECURITY YOU CAN START COLLECTING AT AGE 62 BUT IF YOU'RE STILL EMPLOYED EACH 3 OF EARNINGS BEYOND A THRESHOLD OF 7680 A YEAR WILL REDUCE YOUR BENEFIT BY 1 FROM AGE 65 TO 70 BENEFITS ARE CUT 1 FOR EVERY 3 EARNED OVER 10560 AT AGE 70 YOU CAN COLLECT YOUR COMPLETE BENEFIT REGARDLESS OF INCOME BECAUSE OF THE OFFSET YOU MAY WANT TO HOLD OFF COLLECTING YOUR BENEFIT IF YOU'RE AGE 65 AND EARNING 40560 FOR INSTANCE YOUR SOCIAL SECURITY BENEFIT WILL BE REDUCED BY 10000 BECAUSE THE MAXIMUM SOCIAL SECURITY BENEFIT IS ABOUT 12000 FOR TOPPAID WORKERS THE OFFSET ERASES MOST OF THE BENEFIT THE CLINTON ADMINISTRATION'S TAX PLAN WOULD INCREASE THE TAXABLE PORTION OF SOCIAL SECURITY BENEFITS TO 85 FROM 50 THE HOUSESENATE CONFERENCE COMMITTEE THAT BEGINS MEETING THIS MONTH WILL BE WORKING WITH TWO VERSIONS A HOUSEPASSED PROVISION THAT WOULD APPLY TO INDIVIDUALS WITH INCOME OF MORE THAN 25000 AND FOR COUPLES WITH INCOME OVER 32000 AND A SENATE VERSION THAT WOULD RAISE THE INCOME THRESHOLDS TO 32000 AND 40000 RESPECTIVELY PEOPLE IN THEIR 60S SHOULD ALSO PAY ATTENTION TO THE FINER POINTS OF TAKING MONEY OUT OF PERSONAL AND EMPLOYERSPONSORED RETIREMENT PLANS IF YOU TAKE MORE THAN 150000 IN DISTRIBUTIONS IN ANY ONE YEAR FROM COMPANY PENSIONS KEOGH PLANS FOR SELFEMPLOYMENT INCOME OR INDIVIDUAL RETIREMENT ACCOUNTS YOU WILL PAY 15 ON TOP OF INCOME TAXES HOWEVER IF YOU TAKE THE MONEY OUT IN A LUMP SUM IN MOST CASES THE 15 EXCISE TAX APPLIES ONLY ON AMOUNTS OVER 750000 IF YOU WERE OVER AGE 50 ON JAN 1 1986 YOU CAN COMPUTE THE INCOME TAX DUE ON MONEY TAKEN OUT OF RETIREMENT PLANS USING A SPECIAL 10YEAR RULE THIS LETS YOU PAY INCOME TAX ON THE LUMP SUM AS IF YOU RECEIVED IT AS A SINGLE TAXPAYER OVER 10 YEARS USING THE 1986 TAX TABLES REGARDLESS OF YOUR MARITAL STATUS FURTHER PEOPLE WHO PARTICIPATED IN PENSION PLANS BEFORE 1974 ARE ELIGIBLE TO RECEIVE A PORTION OF THEIR DISTRIBUTION AT A SPECIAL 20 CAPITAL GAINS RATE IF YOU HAVE A CHOICE BETWEEN RECEIVING YOUR PENSION AS A LUMP SUM WHICH YOU CAN INVEST YOURSELF OR AS AN ANNUITY ASK YOUR PENSION ADMINISTRATOR WHAT MORTALITY AND INTEREST RATE ASSUMPTIONS THEY ARE USING SAYS LANCE TANE A CONSULTANT WITH KWASHA LIPTON IN FORT LEE NJ IF LONGEVITY RUNS IN YOUR FAMILY AND YOU THINK THE MONEY COULD GET A BETTER RETURN INVESTED ELSEWHERE CONSIDER ROLLING THE PAYOUT INTO AN IRA AND INVESTING IT YOURSELF BUT DON'T TRY TO MAKE ALL OF THE DECISIONS BY YOURSELF DECISIONS GET ESPECIALLY COMPLICATED WHEN BOTH SPOUSES HAVE RETIREMENT PLANS RETIRE AT DIFFERENT TIMES AND IF ONE OR BOTH HAVE COMPENSATION FROM SUPPLEMENTAL NONQUALIFIED PLANS PROVIDED TO TOP EXECUTIVES REVIEW YOUR BENEFIT PLAN OPTIONS WITH YOUR HUMAN RESOURCES DEPARTMENT THEN WITH A GOOD ACCOUNTANT AND FINANCIAL ADVISER SEE RELATED STORIES HOW TO GET THE MOST OUT OF YOUR BENEFIT PLAN AND TAKING CHARGE OF YOUR RETIREMENT PLAN AND BUILDING A SOLID NEST EGG WSJ JULY 9 1993 9307090045 930709 FIDELITY INVESTMENTS TO FOLLOW SCHWAB WITH NOFEE FUNDS NEW YORK FIDELITY INVESTMENTS THE GIANT BOSTON MUTUAL FUND GROUP IS MOVING TO COPY CHARLES SCHWAB CORP'S HUGELY SUCCESSFUL PROGRAM THAT ALLOWS INVESTORS TO BUY MUTUAL FUNDS FROM A HOST OF FUND COMPANIES WITHOUT PAYING A TRANSACTION FEE IN THE 1980S BOTH FIDELITY AND SCHWAB STARTED SELLING OTHER COMPANIES' MUTUAL FUNDS CHARGING INVESTORS A SMALL FEE FOR THE SERVICE BUT A YEAR AGO SCHWAB TOOK THE IDEA A STEP FURTHER IN JULY 1992 THE SAN FRANCISCO DISCOUNT BROKERAGE FIRM INTRODUCED ITS NOTRANSACTIONFEE PROGRAM UNDER WHICH INVESTORS COULD BUY SOME 100 FUNDS AT NO CHARGE AN ANNUAL FEE EQUAL TO 025 OF ASSETS IS INSTEAD PAID BY THE FUND INVOLVED THE SCHWAB PROGRAM WHICH IS ABOUT TO BE EXPANDED TO 200 FUNDS HAS ALREADY ATTRACTED 4 BILLION FROM INVESTORS WE'LL HAVE AS MANY NOFEE NOLOAD FUNDS AS SCHWAB BY THE END OF THE MONTH SAYS ROGER SERVISON A FIDELITY MANAGING DIRECTOR THE REALITY IS CUSTOMERS WANT TO OWN MORE THAN JUST FIDELITY PRODUCTS FIDELITY'S NOFEE PROGRAM WHICH WILL BE LAUNCHED LATER THIS MONTH WILL INCLUDE 200 NOLOAD FUNDS FROM COMPANIES SUCH AS DREYFUS CORP JANUS GROUP NEUBERGER & BERMAN MANAGEMENT AND STRONG FUNDS AS WITH THE SCHWAB PROGRAM THESE FUND COMPANIES WILL PAY AN ANNUAL FEE EQUAL TO 025 OF ASSETS FOR MONEY BROUGHT IN THROUGH FIDELITY THESE COMPANIES WILL THUS FIND THEMSELVES IN THE ODD POSITION OF PAYING MONEY TO FIDELITY WHICH MANY REGARD AS THE FUND INDUSTRY'S TOUGHEST COMPETITOR BUT AT LEAST ONE FUND EXECUTIVE SAY HE'S NOT BOTHERED THAT HIS COMPANY MIGHT END UP PUTTING MONEY INTO THE POCKET OF EDWARD C JOHNSON III FIDELITY'S CHAIRMAN AND LARGEST SHAREHOLDER AS LONG AS THE ASSETS GO INTO NEUBERGER & BERMAN FUNDS HE'S ENTITLED TO A MARKETING FEE SAYS STANLEY EGENER PRESIDENT OF NEUBERGER & BERMAN MANAGEMENT IN NEW YORK I DON'T HAVE ANY QUALMS ABOUT IT 9307090044 930709 ABREAST OF THE MARKET INDUSTRIALS RISE ON UPBEAT NEWS IN UNEMPLOYMENT AND RETAIL SALES BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES SHOT HIGHER AFTER MORE SOOTHING NEWS ON INTEREST RATES AND THE ECONOMY COMMODITY PRICES EASED FOR A SECOND DAY BONDS EDGED HIGHER AND REPORTS ON JOBLESSNESS AND RETAIL SALES WERE BOTH UPBEAT THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 3875 TO 351442 THAT MOVE ON TOP OF WEDNESDAY'S GAIN OF 2574 COMPLETED A RECOVERY IN THE AVERAGE FROM ITS SHARP LOSSES OF LAST FRIDAY AND TUESDAY ON THE NEW YORK STOCK EXCHANGE ADVANCERS LED DECLINERS 1292 TO 725 VOLUME WAS 282783000 SHARES COMPARED WITH 248434000 WEDNESDAY A STRING OF POOR ECONOMIC NUMBERS LAST WEEK AND SURGING COMMODITIES PRICES TUESDAY HAD BATTERED THE MARKET ERASING MORE THAN 60 POINTS FROM THE INDUSTRIALS IN JUST TWO DAYS BUT YESTERDAY ECONOMICALLY SENSITIVE STOCKS AND FINANCIALRELATED ISSUES WERE THE STARS SHARES OF THE BIG THREE US AUTO MAKERS SURGED WITH GENERAL MOTORS STRONGEST UP 2 1/4 OR 5 TO 46 7/8 MAJOR BANKS RALLIED WITH JP MORGAN AMONG THE LEADERS UP 2 3/4 OR 4 TO 71 7/8 THE SURGING PRICES CAUGHT MANY INVESTORS BY SURPRISE SOME WERE EXPECTING WEAKNESS AS BONDS INITIALLY DECLINED AFTER THE STRONG LABOR DEPARTMENT REPORT ON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE THE GOVERNMENT SAID CLAIMS FELL BY 12000 LAST WEEK INSTEAD OF CLIMBING BY 2000 AS EXPECTED THE REPORT WAS FOLLOWED BY IMPROVED READINGS ON JUNE RETAIL SALES RELEASED BY THE NATION'S MAJOR CHAIN STORE OPERATORS BUT STOCK PRICES HELD STEADY IN THE MORNING AND THEN SURGED AROUND MIDDAY AIDED BY SEVERAL ROUNDS OF COMPUTERGUIDED PROGRAM BUYING THE GAINS HELD THROUGHOUT THE AFTERNOON AND MARKET INDEXES FINISHED NEAR THEIR SESSION HIGHS THE STANDARD & POOR'S 500STOCK INDEX ADVANCED 581 TO 44864 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 265 TO 24833 AND THE DOW JONES EQUITY MARKET INDEX JUMPED 531 TO 42637 EVEN WITH THE PLEASANT ECONOMIC NEWS E WAYNE NORDBERG PARTNER IN CHARGE OF RESEARCH AT LORD ABBETT & CO SAID ECONOMIC GROWTH REMAINS LACKLUSTER THAT HE SAID KEEPS ALIVE THE PROSPECT OF LOW INTEREST RATES WHICH BODES WELL FOR STOCKS PARTICULARLY FINANCIAL ISSUES POLICY MANAGEMENT SYSTEMS PLUNGED 8 5/8 TO 26 3/4 THE COMPANY SAID ITS SECONDQUARTER EARNINGS WILL BE DEPRESSED BY WEAK RESULTS AT ITS HEALTH DIVISION AND BY SEVERAL CHARGES SEPARATELY THE BLYTHEWOOD SC SOFTWARE AND PROCESSING SERVICES CONCERN SAID THE FEDERAL TRADE COMMISSION REQUESTED MORE DATA ON ITS PLANNED PURCHASE OF OTCLISTED CYBERTEK SHARES OF CYBERTEK FELL 1 1/4 TO 13 5/8 POLICY MANAGEMENT LAST MONTH BEGAN A 1510 A SHARE TENDER OFFER FOR THE COMPANY'S COMMON SHARES COLGATEPALMOLIVE CLIMBED 1 1/2 TO 57 THE NEW YORK HOUSEHOLD AND PERSONAL CARE PRODUCTS CONCERN INCREASED ITS QUARTERLY DIVIDEND TO 36 CENTS FROM 31 CENTS THE COMPANY SAID THE MOVE REFLECTS A FAVORABLE OUTLOOK FOR ITS EARNINGS CUMMINS ENGINE JUMPED 1 5/8 TO 85 7/8 AFTER THE COLUMBUS IND COMPANY AGREED TO FORM A JOINT VENTURE TO PRODUCE ENGINES WITH TATA ENGINEERING & LOCOMOTIVE CO THE INDIAN COMPANY WILL USE THE ENGINES IN VEHICLES IT PRODUCES NIKE GAINED 1 1/2 TO 56 EVEN THOUGH IT REPORTED EARNINGS OF 1 A SHARE FOR THE FOURTH QUARTER ENDED MAY 31 UP FROM 92 CENTS A YEAR AGO BUT BELOW ANALYSTS' FORECASTS THE BEAVERTON ORE COMPANY ALSO ANNOUNCED PLANS TO REPURCHASE AS MUCH AS 450 MILLION OF ITS STOCK NIKE SHARES HAD TUMBLED LAST MONTH AFTER IT RELEASED A DOWNBEAT FORECAST FOR FISCAL 1994 AMONG RETAILERS JC PENNEY ROSE 1 7/8 TO 45 1/8 SEARS ROEBUCK & CO GAINED 1 7/8 TO 58 WALMART ADDED 1 TO 26 1/2 KMART INCREASED 5/8 TO 20 5/8 AND DAYTON HUDSON GAINED 7/8 TO 66 WOOLWORTH THOUGH SLUMPED 7/8 TO 27 THE NEW YORK STORE OPERATOR SAID ITS TOTAL JUNE SALES WERE UP JUST 09 IT PREDICTED ITS SECONDQUARTER EARNINGS WILL BE WELL BELOW THE 25 CENTS A SHARE IT POSTED A YEAREARLIER GIANT INDUSTRIES JUMPED 1 3/8 TO 11 3/8 THE SCOTTSDALE ARIZ OIL AND GAS CONCERN SAID IT EXPECTS EARNINGS OF 48 CENTS TO 53 CENTS A SHARE IN THE SECOND QUARTER ABOUT DOUBLE THEIR YEARAGO LEVEL IT CITED IMPROVED BUSINESS AT ITS REFINERY OPERATION 9307090043 930709 INTERNATIONAL WORLD ECONOMY CHINA'S CURRENCY SWAP CENTERS' DRAW US COMPLAINTS OF TRADE RESTRAINT BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA THE GRIMY GRAY BUILDING AT 270 BEIJING ROAD EAST WAS A PRIVATE BANK IN SHANGHAI'S CAPITALIST HEYDAY AND IT'S STILL IN THE MONEY BUSINESS AS SOCIALISM WINDS DOWN YET IT'S AN ODD SORT OF BUSINESS BY WORLD FINANCIAL STANDARDS THE EXBANK'S COLONNADED CENTRAL HALL IS HOME TO THE SHANGHAI FOREIGN EXCHANGE TRANSACTION CENTER A SWAP CENTER WHERE HOLDERS OF FOREIGN EXCHANGE CAN DEAL WITH HOLDERS OF CHINESE YUAN LEGALLY BUT UNDER RESTRICTIONS THE RESULT IS A CONTROLLED HARDCURRENCY MARKET WITH A FLOATING RATE A HYBRID BETWEEN FIXED AND FREE SYSTEMS THAT MEETS SOME OF THE NEEDS OF CHINA'S GROWING NUMBER OF ENTREPRENEURS AND FOREIGN INVESTORS THIS IS PART OF THE TRANSITION FROM SOCIALISM TO A MARKET ECONOMY SAYS WANG DESHUN THE CENTER'S DIRECTOR BUT IT IS ALSO A SERIOUS TRADE RESTRAINT ACCORDING TO THE US GOVERNMENT WHICH WANTS CHINA TO QUICKLY ABOLISH ITS 100 SWAP CENTERS SO DO THE WORLD BANK AND THE INTERNATIONAL MONETARY FUND WHICH AS AIDGIVERS SOMETIMES HAVE MORE CLOUT THE FOREIGN EXCHANGE RESTRICTIONS ARE DESIGNED TO HINDER IMPORTS CONTENDS THE US TREASURY SWAP CENTERS RATION ACCESS TO HARD CURRENCY FOR PURPOSES THE STATE CONSIDERS FRIVOLOUS AND WASTEFUL SOME NONESSENTIALS DO SLIP IN ITEMS LIKE JIM BEAM BOURBON BECK'S BEER AND NESCAFE CAN BE FOUND IN URBAN SHOPS YET SWAP CENTERS KEEP OUT MANY GOODS BECAUSE BUREAUCRATS DENY ACCESS TO BUYERS WHOSE PLANS THEY DON'T LIKE THIS LEAVES MUCH PENTUP DEMAND FOR IMPORTED CONSUMER AND INDUSTRIAL GOODS IN THIS EXPANDING ECONOMY SOMETIMES INCLUDING CRUCIAL SUPPLIES FOR INDUSTRIAL OPERATIONS OFTEN OWNED BY FOREIGNERS THE COMPLEX RULES GOVERNING SWAP CENTERS ALSO HAVE THE UNINTENDED EFFECT OF RESTRICTING EXCHANGE FLOWS TO CHINA'S POOR INTERIOR THIS HINDERS GROWTH IN THE VERY REGIONS WHERE THE NEED IS GREATEST AND UNREST SEEMS MOST LIKELY THWARTING BEIJING'S OWN DEVELOPMENT PLANS THE ECONOMIC IMPACT IS ENTIRELY DISTORTIVE COMPLAINS A US OFFICIAL WITHOUT A PLANNED LIBERALIZATION OF EXCHANGE CONTROLS THIS WILL BEDEVIL OUR RELATIONS FOR SOME TIME BUT REFORM HAS BEEN DELAYED BY CHINA'S MORE URGENT PROBLEMS URBAN INFLATION IS NEAR 20 A SERIOUS TRADE DEFICIT HAS EMERGED THE OLD SOCIALIST BANKING SYSTEM FLOUNDERS IN THE NEW MARKET ECONOMY AND THE CENTRAL BANK'S CHAIRMAN HAS HAD TO RESIGN WITH THE PRIME MINISTER ON THE SICK LIST HIS CHIEF DEPUTY HAS ASSUMED GREATER CONTROL OVER ECONOMIC AFFAIRS AND HIS MAIN JOB IS TO PREVENT HYPERINFLATION WHICH COULD BRING SOCIAL UNREST AND A REPEAT OF THE 1989 TIANANMEN CRACKDOWN AS A RESULT CHINESE OFFICIALS HAVE LITTLE INTEREST JUST NOW IN DISCUSSING EXCHANGE CONTROLS WITH THEIR US COUNTERPARTS THEIR RELUCTANCE MAY BE COMPOUNDED BY REGULAR TREASURY COMPLAINTS TO CONGRESS ABOUT SWAP CENTERS REPORTS REQUIRED BY US LAW BUT UNWELCOME IN BEIJING HOWEVER THE CHINESE SEEM TO HEED ADVICE FROM WORLD BANK AND IMF OFFICIALS WHO ARE HELPING TO UPDATE A CREAKY FINANCIAL SYSTEM THUS OFFICIALS OF THESE TWO INSTITUTIONS EXPECT HELPFUL CHANGES ONCE BEIJING TURNS AGAIN TO LONGERTERM ISSUES CHINESE LEADERS NOW CONCEDE STRUCTURAL WEAKNESSES HELPED CAUSE THE CURRENT CRISIS AND MAKE RESOLUTION DIFFICULT AT LEAST THREE CHANGES ARE PENDING ONE WILL UNIFY THE DISTINCTLY LOCAL FOREIGN EXCHANGE MARKETS AND LET FUNDS FLOW MORE FREELY AROUND THE COUNTRY THAT SHOULD DIRECT MORE TO AREAS WHERE IT IS MOST NEEDED ANOTHER WILL DISCOURAGE HOLDING FOREIGN CASH FOR SPECULATIVE GAINS MAKING MORE AVAILABLE FOR IMMEDIATE NEEDS AND THE THIRD WILL LIMIT THE GOVERNMENT'S ABILITY TO SEIZE LARGE SUMS FOR ITSELF LEAVING MORE FOR IMPORTERS AND INVESTORS THESE WILL HELP CREATE A PROPER MARKET ONE LESS INFLUENCED BY BUREAUCRATS SAYS AN OUTSIDE ADVISER FOREIGN INVESTORS WILL WELCOME THE CHANGES BUT EVENTUALLY CHINA MUST PUT HARD CURRENCY DEALINGS INTO A MODERNIZED BANKING STRUCTURE RELYING ON MAKESHIFT MECHANISMS SUCH AS SWAP CENTERS ENCOURAGES CHEATING FOR PROOF SIMPLY STEP OUTSIDE THE SHANGHAI CENTER INTO BUSY BEIJING ROAD EAST IMMEDIATELY A BESPECTACLED YOUNG MAN HURRIES UP AND ASKS POLITELY WANT TO CHANGE MONEY IF YOU DO CALL ME HERE'S MY BEEPER NUMBER 9307090042 930709 OTC FOCUS NASDAQ SHARES GAIN AMID IMPROVEMENT SHOWN BY DATA CHEAPER COMMODITIES BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IMPROVING ECONOMIC DATA AND LOWER COMMODITY PRICES HELPED THE NASDAQ MARKET POST SOLID GAINS ACROSS THE BOARD BANK OTHER FINANCE TECHNOLOGY AND HEALTHCARE ISSUES LED THE OVERTHECOUNTER MARKET HIGHER FOLLOWING AN UPTURN IN BOND PRICES THAT REVERSED COURSE AFTER SOME EARLY WEAKNESS THE NASDAQ COMPOSITE INDEX JUMPED 392 POINTS OR 056 TO FINISH AT 70271 ADVANCING ISSUES RAN AHEAD OF DECLINERS 1450 TO 1347 ON VOLUME OF 2558 MILLION UP FROM THE 265 MILLION SHARES TRADED WEDNESDAY HIGHER JUNE CHAINSTORE SALES UNITED WITH LOWER JOBLESS CLAIMS FOR THE LATEST WEEK TO GIVE INVESTORS MORE CONFIDENCE THAT THE ECONOMY ISN'T AS WEAK AS RECENT DATA WOULD SUGGEST BONDS FIRMED AS COMMODITY PRICES DROPPED THE COMMODITY RESEARCH BUREAU INDEX FELL MORE THAN A POINT THAT INDEX A LEADING INFLATION INDICATOR JUMPED SHARPLY TUESDAY FUELING FEARS AMONG INVESTORS BIG BOARD SHARES RALLIED STRONGLY AIDED BY SOME PROGRAM BUYING WITH THE DOW JONES INDUSTRIAL AVERAGE SURGING 3875 POINTS OR 111 TO 351442 LANCE ZIPPER MANAGER OF NASDAQ TRADING AT KIDDER PEABODY & CO SAID THE TECHNOLOGY SECTOR BOUNCED BACK AFTER BEING OVERDONE ON THE SELL SIDE WEDNESDAY BUT THAT GAINS IN OTHER SECTORS ARE HARDER TO EXPLAIN THE MAIN REASON WE SAW THE UPTURN WAS THAT THE BOND MARKET GOT STRONGER HE SAID BUT IN TERMS OF THIS ECONOMIC DATA HE ADDED PEOPLE ARE STARTING TO REALIZE THAT THE REPORTS ARE GOING TO COME OUT WEEK BY WEEK AND THEY MAY CHANGE WEEK BY WEEK INTERESTRATESENSITIVE ISSUES SURGED BANPONCE BAY VIEW CAPITAL BOATMEN'S BANCSHARES CRESTAR FINANCIAL FIRST TENNESSEE MICHIGAN NATIONAL UNION BANK AND UNITED WISCONSIN ALL ROSE AT LEAST A POINT HUGH A JOHNSON CHIEF INVESTMENT STRATEGIST AT FIRST ALBANY SAID THAT FOR THE NEAR TERM THE POSITIVE ECONOMIC REPORTS THIS WEEK SHOULD BE A BOON TO OTC STOCKS THERE'S RENEWED CONFIDENCE AS THE ECONOMIC NUMBERS HELPED BUOY SPIRITS WHICH SHOULD HELP THE MARKET AT LEAST TOMORROW FRIDAY AND MONDAY HE SAID WE'RE SAFE UNTIL THE PRODUCER PRICE AND CONSUMER PRICE REPORTS NEXT WEEK HIGHFLYING TECHNOLOGY STOCKS SOARED HIGHER AFTER FALLING BACK WEDNESDAY ON WEAKNESS IN MICROSOFT AND SEQUENT COMPUTER MICROSOFT REBOUNDED 1 1/2 TO 84 7/8 AFTER SLIDING 2 5/8 THE DAY BEFORE SEQUENT ALSO RETOOK SOME GROUND AND FINISHED UP 7/8 TO 12 5/8 AFTER TOPPLING FIVE POINTS THE DAY BEFORE ALSO IN THE TECHNOLOGY GROUP INTEL THE DAY'S FIFTH MOSTACTIVE STOCK GAINED 2 1/8 TO 54 3/4 ADOBE SYSTEMS EDGED UP 1 5/8 TO 56 3/4 AND LOTUS DEVELOPMENT ADVANCED 2 1/4 TO 34 1/2 A SPOKESMAN CITED NO COMPANY DEVELOPMENTS BUT NOTED THAT DEAN WITTER ANALYST TIMOTHY MCCOLLUM RAISED HIS SECONDQUARTER EARNINGS ESTIMATE TO 35 CENTS A SHARE FROM 30 CENTS ON A SALES FORECAST OF 240 MILLION IN THE YEAREARLIER QUARTER LOTUS EARNED 149 MILLION OR 34 CENTS A SHARE ON SALES OF 2203 MILLION HEALTHCARE ISSUES FINISHED MIXED GENZYME CAMBRIDGE MASS SLIPPED 1 5/8 TO 34 3/8 VECTOR SECURITIES CUT ITS INVESTMENT RATING ON THE BIOTECHNOLOGY CONCERN TO NEUTRAL FROM BUY CITING A DIMINISHED EARNINGS OUTLOOK FOR 1994 THE BROKERAGE FIRM REDUCED ITS 1994 NETINCOME ESTIMATE TO 220 A SHARE FROM 240 AND ITS 1995 PROJECTION TO 275 FROM 310 CHIRON OF EMERYVILLE CALIF LOST 2 1/4 TO 62 AFTER LEHMAN BROTHERS ANALYST TEENA L LERNER DOWNGRADED THE COMPANY'S SHARES TO NEUTRAL FROM OUTPERFORM REPORTEDLY ON A PRICE BASIS IN THE MEDICALRELATED SECTOR TAKECARE JUMPED 1 3/4 TO 43 1/2 OXFORD HEALTH PLANS CLIMBED 2 1/2 TO 72 AND US HEALTHCARE ROSE 1 1/2 TO 48 3/4 THOUGH THE NASDAQ UTILITY INDEX WAS THE ONLY OTC BAROMETER THAT WEAKENED MOBILE TELECOMMUNICATIONS STOOD OUT AS A BIG GAINER THE JACKSON MISS PAGING SERVICES PROVIDER SHOT UP 1 3/8 TO 22 7/8 FOLLOWING ITS ANNOUNCEMENT THAT IT HAD 291300 PAGING AND VOICE MESSAGING UNITS IN SERVICE WORLDWIDE AS OF JUNE 30 A 34 INCREASE FROM A YEAR EARLIER VERIFONE OF REDWOOD CITY CALIF DECLINED 3 7/8 TO 23 7/8 ON 29 MILLION SHARES ABOUT 13 TIMES ITS AVERAGE DAILY VOLUME THE TRANSACTION AUTOMATION SYSTEMS MAKER SAID IT EXPECTS TO REPORT FISCAL SECONDQUARTER EARNINGS THAT ARE ABOUT EVEN WITH THE 26 CENTS A SHARE REPORTED A YEAR EARLIER ANALYSTS HAD FORECAST EARNINGS OF ABOUT 32 CENTS A SHARE AMONG RETAILERS PACIFIC SUNWEAR OF CALIFORNIA PLUNGED 1 5/8 TO 8 1/8 THE SANTA ANA CALIF OPERATOR OF YOUNG MEN'S APPAREL STORES SAID SAMESTORE SALES FELL 2 FOR THE FIVE WEEKS ENDED JULY 4 9307090041 930709 TANDY SAMESTORE SALES RISE 8 FORT WORTH TEXAS TANDY CORP SAID SAMESTORE US SALES FOR JUNE ROSE 8 THE CONSUMER ELECTRONICS RETAILER SAID TOTAL SALES INCREASED 17 TO 2667 MILLION FROM 2276 MILLION LAST YEAR THE FIGURES DON'T INCLUDE STORES THAT HAVE BEEN CLOSED UNDER THE COMPANY'S RESTRUCTURING PLAN TANDY SAID SEPARATELY MOODY'S INVESTORS SERVICE INC DOWNGRADED THE SENIOR DEBT RATING OF TANDY AND TANDY CREDIT CORP TO BAA2 FROM SINGLEA3 CITING INTENSIFIED COMPETITION AND REDUCED PROFIT MARGINS IN THE CONSUMER ELECTRONICS INDUSTRY AND REDUCED CASH FLOW BECAUSE OF THE NEED TO FUND NEW RETAIL VENTURES A SPOKESWOMAN FOR TANDY SAID WE WERE SOMEWHAT SURPRISED PARTICULARLY IN VIEW OF OUR DIVESTMENT PROGRAM IN AN EFFORT TO FOCUS ON ITS CORE BUSINESS THE COMPANY HAS BEEN SELLING OFF NONRETAILING OPERATIONS 9307090040 930709 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JULY 2 ACCOUNTED FOR 107 OR AN AVERAGE OF 28 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 65 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 32 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 383 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 476 OF PROGRAM TRADING WAS EXECUTED BY FIRMS TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 463 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 61 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND SALOMON BROTHERS EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE UBS SECURITIES MORGAN STANLEY AND FIRST BOSTON DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9307090039 930709 COSTCO ADOPTS RIGHTS PLAN KIRKLAND WASH COSTCO WHOLESALE CORP SAID IT ADOPTED A SHAREHOLDER RIGHTS PLAN IN CONNECTION WITH ITS PREVIOUSLY ANNOUNCED MERGER WITH PRICE CO IN SAN DIEGO UNDER THE PLAN THE COMPANY YESTERDAY DISTRIBUTED TO COMMONSTOCK HOLDERS ONE PREFERRED STOCK PURCHASE RIGHT PER COMMON SHARE OWNED THE RIGHTS EXPIRE UPON COMPLETION OF THE MERGER AND ARE EXERCISABLE IN THE EVENT THAT A PARTY NOT INCLUDING PRICE CO AND CERTAIN OTHERS ACQUIRES OR ATTEMPTS TO ACQUIRE 10 OF COSTCO'S COMMON STOCK 9307090038 930709 TECHNOLOGY & MEDICINE WARNERLAMBERT EXPECTS FDA PACT PROFIT MAY BE HURT BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MORRIS PLAINS NJ WARNERLAMBERT CO SAID IT EXPECTS TO REACH A SETTLEMENT SOON WITH THE FOOD AND DRUG ADMINISTRATION AND INDICATED THAT THE ACCORD COULD CUT EARNINGS THE SETTLEMENT IN THE FORM OF A CONSENT DECREE WOULD BE AIMED AT RESOLVING PROBLEMS UNCOVERED AT WARNERLAMBERT'S MANUFACTURING PLANTS PRINCIPALLY IN PUERTO RICO BUT ALSO INCLUDING SOME US PLANTS A SPOKESMAN DECLINED TO BE MORE SPECIFIC ABOUT THE CONSENT DECREE'S FINANCIAL IMPACT IN A WORSTCASE SCENARIO THE FDA'S ACTIONS COULD REDUCE 1993 EARNINGS BY 20 CENTS TO 30 CENTS A SHARE ESTIMATED MARIOLA B HAGGAR AN ANALYST AT SALOMON BROTHERS INC MS HAGGAR HAD ESTIMATED 1993 EARNINGS OF 525 A SHARE EXCLUDING THE IMPACT OF A CONSENT DECREE THE DETAILS AREN'T FINALIZED THE WARNERLAMBERT SPOKESMAN SAID BUT THE AGREEMENT COULD AFFECT ADDITIONAL PRODUCTS BEYOND THOSE ALREADY DISCLOSED THE CONSENT DECREE COULD BAR THE SALE OF SOME CONSUMER PRODUCTS UNTIL THE VIOLATIONS ARE RESOLVED THE SPOKESMAN SAID AMONG THE PRODUCTS MADE IN PUERTO RICO ARE THE OVERTHECOUNTER MEDICATIONS SINUTAB AND BENADRYL HE SAID BUT HE ADDED THAT IT ISN'T CLEAR WHICH IF ANY OF THE PRODUCTS WILL BE INCLUDED AS IT HAS IN THE PAST THE COMPANY SAID THE PROBLEMS INVOLVED RECORDKEEPING AND OTHER VIOLATIONS OF GOOD MANUFACTURING PRACTICES AND DIDN'T AFFECT THE SAFETY OR EFFICACY OF ITS PRODUCTS THE FDA DECLINED COMMENT ON THE QUESTION OF A CONSENT DECREE IN DECEMBER WARNERLAMBERT RECALLED EIGHT DRUGS MADE IN PUERTO RICO BECAUSE OF VIOLATIONS UNCOVERED DURING FDA INSPECTIONS LOST SALES OF THREE OF THOSE DRUGS CENTRAX AN ANTIANXIETY DRUG CERTAIN FORMS OF THE HEART DRUG PROCAN SR AND ERYC AN ANTIINFECTIVE AMOUNTED TO 50 MILLION IN THE FIRST HALF OF 1993 THE SPOKESMAN SAID THE CONSENT DECREE WOULD OUTLINE STEPS THE COMPANY NEEDS TO TAKE TO CORRECT MANUFACTURING PROBLEMS BUT WOULDN'T INCLUDE FINANCIAL PENALTIES THE SPOKESMAN SAID WE AS A COMPANY HAVEN'T BEEN AS VIGILANT AS WE SHOULD HAVE BEEN IN MAINTAINING GOOD MANUFACTURING PRACTICES IN THE FACE OF PRESSURES TO PRODUCE QUALITY HEALTHCARE AND CONSUMER PRODUCTS EFFICIENTLY AND IN A COSTEFFECTIVE MANNER HE SAID THE COMPANY HAS OVERHAULED ITS MANUFACTURING REPORTING STRUCTURE TO STRENGTHEN QUALITY CONTROL THE SPOKESMAN SAID THE COMPANY'S PROBLEMS AREN'T EXPECTED TO AFFECT A GOVERNMENT REVIEW OF MEDICALLY CRITICAL DRUGS SUCH AS THE ALZHEIMER'S TREATMENT COGNEX AND THE ANTICONVULSANT NEURONTIN THE WARNERLAMBERT SPOKESMAN SAID SCIENTIFIC REVIEW OF OTHER DRUGS SUCH AS ESTROSTEP AND LOPID SR HOWEVER HAS BEEN HALTED UNTIL THE MANUFACTURING PROBLEMS ARE RESOLVED THE CONSENT DECREE WON'T AFFECT THE INVESTIGATION BY THE US ATTORNEY'S OFFICE IN BALTIMORE ON WARNERLAMBERT'S ALLEGED NONCOMPLIANCE WITH FDA REGULATIONS THE SPOKESMAN SAID WARNERLAMBERT STOCK ROSE 1125 A SHARE OR 16 TO CLOSE AT 6975 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9307090037 930709 TECHNOLOGY & MEDICINE DNA INJECTION IN GENE THERAPY IS CALLED SUCCESS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO SCIENTISTS AT THE UNIVERSITY OF CALIFORNIA REPORTED SUCCESS WITH A NEW MODEL OF GENE THERAPY INVOLVING DIRECT INJECTION OF DNA THE RAW MATERIAL OF GENES INTO MICE THE GROUP EVENTUALLY AIMS TO APPLY THE TECHNIQUE TO A SEARCH FOR GENE THERAPY AGAINST THE LIFETHREATENING LUNG DISEASE CYSTIC FIBROSIS MOST EXPERIMENTAL GENE THERAPY INVOLVES A COMPLICATED PROCESS OF REMOVING CELLS GENETICALLY ENGINEERING THEM IN A TEST TUBE AND REINFUSING THEM INTO THE PATIENT HOWEVER ROBERT DEBS OF UCSF'S CANCER RESEARCH INSTITUTE SAID HE SUCCESSFULLY INSERTED A NEW GENE INTO MANY TISSUES AND CELLS BY DIRECTLY INJECTING DNA ENCASED IN LIPOSOMES A FATTY SUBSTANCE USED IN DRUG DELIVERY IT'S A METHOD THAT HAS ATTRACTED INTEREST BUT ONLY LIMITED SUCCESS PEOPLE HAVE TRIED DIRECT INJECTION OF DNA BEFORE AND GOTTEN LOW LEVEL EXPRESSION OF THE GENE IN ONE TISSUE TYPE DR DEBS SAID IN AN INTERVIEW THIS IS CERTAINLY THE FIRST TIME WE'VE GOTTEN EXPRESSION IN MOST CELLS AND ALL TISSUE TYPES DR DEBS SAID THE GENE HAD BEEN TAKEN UP AND EXPRESSED BY THE MAJORITY OF TLYMPHOCYTES WHITE BLOOD CELLS CRUCIAL TO THE IMMUNE RESPONSE A WIDE RANGE OF ORGAN SYSTEMS HAD TAKEN UP THE GENE INCLUDING LYMPH NODES SPLEEN MAMMARY GLAND AND BONE MARROW IT LOOKS LIKE THESE LIPOSOMES ARE UNIVERSAL CARRIERS THAT CAN REACH MOST KINDS OF CELLS HE ADDED DR DEBS AND HIS COWORKERS PUBLISHED THEIR FINDINGS IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE WHICH DESCRIBED THEIR REPORT IN ITS WEEKLY PRESS ADVISORY AS A BREAKTHROUGH THE RESEARCH'S NEXT PHASE INVOLVED INJECTING A GENE CALLED CFTR WHICH CARRIES THE MUTATION RESPONSIBLE FOR CYSTIC FIBROSIS INTO MICE SHEEP AND RHESUS MONKEYS IT'S WORKED WELL IN ALL THREE SPECIES HE SAID WE'VE SEEN IT EXPRESSED IN TARGET CELLS OF THE LUNGS OF MICE FOR UP TO SIX MONTHS AFTER A SINGLE INJECTION AND IN ONGOING STUDIES IN MONKEYS FOR AT LEAST FOUR WEEKS THE DEBS TEAM IS WORKING WITH THE PRIVATE YEAROLD BIOTECHNOLOGY COMPANY MEGABIOS CORP OF SAN FRANCISCO WHICH IS BACKED BY VENTURE CAPITALISTS WILLIAM BROWN AND FRANK CAUFIELD WITH ITS FOCUS ON CYSTIC FIBROSIS THE UCSFMEGABIOS GROUP ENTERS A FIELD STAKED OUT FOUR MONTHS AGO BY GENENTECH INC OF SOUTH SAN FRANCISCO AND A PRIVATE COLLABORATOR GENVEC OF MONTGOMERY COUNTY MD GENVEC IS DEVELOPING TECHNOLOGY THAT USES A DISABLED VERSION OF THE VIRUS THAT CAUSES THE COMMON COLD AS A CARRIER FOR INSERTING THE CORRECTIVE GENE INTO LUNG CELLS 9307090036 930709 AMEX SPECIALISTS TEST HANDHELD COMPUTERS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NO THE HANDHELD COMPUTERS BEING TOTED AROUND THE FLOOR OF THE AMERICAN STOCK EXCHANGE BY SOME OPTIONS SPECIALISTS AREN'T NINTENDO GAMES RATHER THEY'RE PART OF AN EXPERIMENT AIMED AT SAVING TIME AND SHOE LEATHER AS WELL AS KEEPING SPECIALIST FIRMS WHICH MAKE MARKETS IN EVERYTHING FROM STOCKS TO OPTIONS UPTODATE ON THEIR EXPOSURE IN FASTMOVING MARKETS IF THE EXPERIMENT IS SUCCESSFUL MANY OF THE HUNDREDS OF BROKERS AND TRADERS WHO ROAM THE EXCHANGE'S FLOOR WILL SOON BE EQUIPPED WITH TINY ELECTRONIC TERMINALS WHERE THEY CAN GET PRICE INFORMATION AND EXECUTE TRADES THE DEVICES WHICH WEIGH 19 OUNCES AND CARRY ABOUT 1000 TRADES ENABLE SPECIALISTS TO RECORD TRANSACTIONS WITH JUST A FEW TOUCHES OF THEIR FINGERS MORE IMPORTANTLY THE MIDGET COMPUTERS MADE BY GRANITE CORP OF NASHUA NH GIVE THE BIG SPECIALIST FIRMS AN INSTANT SNAPSHOT OF THE RISKS THEY BEAR AT THE AMEX SPECIALISTS TYPICALLY SCRIBBLE THEIR TRADES ON AN ORDER SLIP THEN A CLERK MANUALLY ENTERS THE DATA INTO THE FIRM'S COMPUTER SYSTEM IF THE MARKETS ARE MOVING RAPIDLY THE INFORMATION THE CLERK GATHERS FROM THE FLOOR IS OFTEN OBSOLETE BY THE TIME IT'S PUT INTO THE FIRM'S COMPUTER SYSTEM BUT THE NEW ELECTRONIC PADS TRANSMIT INFORMATION INSTANTANEOUSLY AND LEARNING TO USE THEM IS SIMPLE A MONKEY CAN USE THESE THINGS SAYS A SPECIALIST CLERK AT SPEAR LEEDS & KELLOGG WHICH HAS BEEN EXPERIMENTING WITH THE DEVICES WELL MAYBE TRADERS SAY THE BIGGEST HURDLE FACING EXPANDED USE OF THE COMPUTERS IS THAT MANY AMEX MEMBERS SIMPLY DON'T WANT TO ENTER THE WORLD OF ELECTRONIC TRADING US OLD GUYS ARE FASTER THAN MOST OF THESE COMPUTERS SAYS ONE TRADER ON THE AMEX WHO HAS BEEN WATCHING HIS COLLEAGUES USING HANDHELD TERMINALS TO HELL WITH IT I DON'T NEED THE HANDHELDS GRANITE COMMUNICATIONS INC OF NASHUA NH MAKES THE HANDHELD COMPUTERS USED BY THE AMERICAN STOCK EXCHANGE IN AN ARTICLE FRIDAY THE NAME OF THE COMPANY WAS INCORRECT BASED ON INFORMATION PROVIDED BY THE AMEX 9307090035 930709 GE UNIT PROVIDES FINANCING FAIRFIELD CONN GE CAPITAL FLEET SERVICES A UNIT OF GENERAL ELECTRIC CO SAID ITS MCCULLAGH FLEET SERVICES OPERATION HAS AGREED TO PROVIDE FINANCING AND SERVICING FOR AIRWAYS TRANSPORTATION GROUP'S 422UNIT COMMERCIAL FLEET AIRWAYS TRANSPORTATION SCHILLER PARK ILL WILL CONTINUE TO OPERATE UNDER ITS OWN NAME GE CAPITAL FLEET SAID MCCULLAGH'S INVESTMENT IN AIRWAYS TRANSPORTATION IS PART OF AN EXPANSION PLAN WHICH INCLUDES NEW SALES OFFICES IN SIX CITIES THIS YEAR FOR MCCULLAGH A FLEET MANAGEMENT FIRM 9307090034 930709 VESTAR CAPITAL PARTNERS INC THE FUND WILL BE USED TO INVEST IN MANAGEMENT BUYOUTS OF COMPANIES WITH AN ACQUISITION VALUE OF BETWEEN 100 MILLION AND 500 MILLION 9307090033 930709 BAVARIAN OFFICIALS DROP OPPOSITION TO SOTHEBY'S SALE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BAVARIAN GOVERNMENT DROPPED ITS OPPOSITION TO THE SALE OF THE PRINCE VON THURN UND TAXIS ESTATE CLEARING THE WAY FOR SOTHEBY'S HOLDINGS INC TO SELL JEWELS ART AND FURNITURE VALUED AT MORE THAN 84 MILLION IN GERMANY IN OCTOBER SOTHEBY'S NINEDAY AUCTION MARATHON WAS APPROVED ONLY AFTER THE BAVARIAN GOVERNMENT ENDED UP WITH MANY ITEMS THAT THE VON THURN UND TAXIS HEIRS HAD ORIGINALLY PLANNED TO AUCTION WHEN SOTHEBY'S ANNOUNCED THE HUGE SALE ALMOST A YEAR AGO ART AND ANTIQUES VALUED AT 264 MILLION MANY OF THEM OF REGIONAL OR HISTORICAL IMPORTANCE WERE SOLD THROUGH SOTHEBY'S TO THE GOVERNMENT AS PARTIAL PAYMENT OF THE ESTATE'S INHERITANCE TAXES BILLIONAIRE JOHANNES VON THURN UND TAXIS HEAD OF ONE OF EUROPE'S WEALTHIEST FAMILIES AND A DESCENDANT OF THE FOUNDER OF EUROPE'S POSTAL SYSTEM DIED IN DECEMBER 1990 HIS FAMILY'S SETTLEMENT WITH THE BAVARIAN GOVERNMENT STILL LEAVES SOTHEBY'S WITH ONE OF THE LARGEST ESTATES TO BE SOLD SINCE THE ART MARKET'S COLLAPSE IN 1990 FAMILY SILVER AND JEWELS THAT WERE EXPORTED TO SWITZERLAND WERE ALREADY AUCTIONED IN NOVEMBER FOR 137 MILLION MOREOVER SOTHEBY'S EARNED ADDITIONAL UNDISCLOSED REVENUE FOR ACTING AS APPRAISER AND AGENT BETWEEN THE PARTIES THE VON THURN UND TAXIS ESTATE HAD BEEN A SELLING POINT TO INSTITUTIONAL INVESTORS IN SOTHEBY'S SECONDARY STOCK OFFERING IN JUNE IN THE FIRM'S 16CITY ROAD SHOW THE ESTATE WASN'T IDENTIFIED BY NAME BUT WAS OTHERWISE DISCUSSED BY COMPANY OFFICIALS AS A POTENTIAL SOURCE OF REVENUE MONEY MANAGERS AND ANALYSTS SAID BUT IN JULY 1992 MICHAEL PETZET HEAD OF BAVARIA'S BAYERISCHES DENKMALAMT THE OFFICE THAT OVERSEES HISTORICAL PRESERVATION AND CULTURAL PATRIMONY ASKED THAT THE SOTHEBY'S AUCTIONS BE CANCELED OVER CONCERN THAT NATIONAL TREASURES MIGHT BE SOLD AND EXPORTED FROM GERMANY A YEAR OF NEGOTIATIONS WITH GERMAN TAX AND MUSEUM OFFICIALS FOLLOWED THE STATE IS TAKING OVER A GOOD PART OF THE COLLECTION AND ATTEMPTING TO KEEP IT IN PERPETUITY SAID TIMOTHY D LLEWELLYN SOTHEBY'S DEPUTY CHAIRMAN IN LONDON A MUSEUM IS PLANNED IN REGENSBURG BAVARIA TO HOUSE THE ITEMS HE ADDED FROM OCT 12 THROUGH OCT 21 SOTHEBY'S WILL AUCTION OVER 3500 OBJECTS PRINCIPALLY BIEDERMEIER FURNITURE MEISSEN AND OTHER PORCELAIN THE FAMILY'S EXTENSIVE WINE COLLECTION AND SCORES OF 18THCENTURY AND 19THCENTURY PAINTINGS THE SALES WILL BE HELD IN THE CARRIAGE MUSEUM ON THE GROUNDS OF THE FAMILY'S CASTLE SCHLOSS ST EMMERAM IN REGENSBURG ADDITIONAL AUCTIONS MAY BE POSSIBLE MR LLEWELLYN SAID 9307090032 930709 WHO'S NEWS FEDERATED DEPARTMENT STORES FEDERATED DEPARTMENT STORES INC CINCINNATI THIS RETAILING GROUP'S BLOOMINGDALE'S UNIT NAMED CHRISTINE MILLER EXECUTIVE VICE PRESIDENT OF MARKETING A NEW POSITION MS MILLER 48 YEARS OLD WAS PREVIOUSLY VICE PRESIDENT OF MARKETING FOR TIMES MIRROR CO'S NEWSDAY A BLOOMINGDALE'S SPOKESWOMAN SAID THE POSITION INCLUDES RESPONSIBILITY FOR MARKETING IN REGIONS OUTSIDE THE US AS PART OF A SHIFT IN FOCUS FROM MERCHANDISING TO INTERNATIONAL MARKETING 9307090031 930709 NORTHROP SUIT NAMES CANADIAN GOVERNMENT BRISTOL AEROSPACE LTD LOS ANGELES NORTHROP CORP FILED A LAWSUIT AGAINST THE CANADIAN GOVERNMENT AND BRISTOL AEROSPACE LTD OF WINNIPEG MANITOBA ALLEGING BREACH OF CONTRACT AND WRONGFUL USE OF NORTHROP PROPRIETARY DATA IN A LICENSING AGREEMENT RELATING TO ITS F5 FIGHTER JET IN THE SUIT FILED IN FEDERAL COURT HERE NORTHROP SEEKS UNPAID ROYALTIES AND COMPENSATORY DAMAGES FROM CANADA AND PUNITIVE DAMAGES FROM BRISTOL A SPOKESMAN FOR THE US DEFENSE CONTRACTOR SAID AMOUNTS WEREN'T SPECIFIED IN THE SUIT AND WOULD BE DETERMINED IN COURT CANADIAN GOVERNMENT OFFICIALS COULDN'T BE REACHED FOR COMMENT AND BRISTOL OFFICIALS WEREN'T AVAILABLE THE SUIT ALLEGES THAT IN 1990 THE CANADIAN GOVERNMENT AND BRISTOL STOPPED MAKING ROYALTY PAYMENTS ON SPARE F5 PARTS DESPITE REPORTS OF FURTHER SALES NORTHROP ALSO CHARGES THAT BRISTOL VIOLATED AN AGREEMENT BETWEEN NORTHROP THE CANADIAN GOVERNMENT AND ITS LICENSEES BY ENGAGING IN A WORLDWIDE EFFORT TO REPAIR REFURBISH AND UPGRADE F5 AIRCRAFT OWNED BY COUNTRIES OTHER THAN CANADA VENEZUELA AND THE NETHERLANDS BRISTOL TOOK OUT AN ADVERTISEMENT FOR F5 UPGRADES IN A PUBLICATION CALLED ASIAN MILITARY REVIEW THE NORTHROP SPOKESMAN SAID THE SUIT HINGES ON A LICENSING AGREEMENT BETWEEN NORTHROP AND CANADA UNDER WHICH CANADA PRODUCED SEVERAL MODELS OF NORTHROP'S F5 TACTICAL FIGHTER AIRCRAFT DURING THE 1960S AND 1970S THE CANADIAN GOVERNMENT AND ITS LICENSED CONTRACTORS HAD LIMITED RIGHTS TO SERVICE MAINTAIN AND SUPPLY PARTS FOR THE AIRCRAFT IN EXCHANGE FOR ROYALTIES ON SPARE PARTS SOLD NORTHROP SAID NORTHROP SAID IT FILED SUIT AFTER NEGOTIATIONS FAILED IT WAS NORTHROP'S SECOND SUIT AGAINST THE CANADIAN GOVERNMENT OVER F5 LICENSING DISPUTES NORTHROP SUED CANADA FOR CONTRACTUAL VIOLATIONS AND NONPAYMENT OF ROYALTIES IN 1973 SETTLING IN 1976 WITH AN AGREEMENT IN WHICH THE CANADIAN GOVERNMENT PAID NORTHROP 9 MILLION 9307090030 930709 WHAT IS THE SECRET OF STRETCHING LIFE A LITTLE BIT LONGER A STUDY BY SOME GERONTOLOGISTS IN JAPAN COULD WELL PLEASE EATERS OF FATTY FRIED FOODS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DOES THE FOUNTAIN OF YOUTH GUSH BUTTERFAT OLDAGE RESEARCHERS IN JAPAN WHICH HAS THE WORLD'S LONGESTLIVING POPULATION HAVE CONCLUDED THAT CONSUMING FATTY FOODS COOKED IN OIL IS EXTENDING THE NATIONAL LIFESPAN IT'S BEEN A LONG TIME SINCE ANYBODY ARGUED THAT YOU CAN BEAT BACK THE GRIM REAPER WITH A PORK CHOP BUT SOME JAPANESE SCIENTISTS INSIST IT'S TRUE AND POINT TO THEIR AVERAGE NATIONAL LIFESPAN OF 82 YEARS FOR MEN AND 85 YEARS FOR WOMEN IN THE DAYS WHEN JAPAN TRAILED THE DEVELOPED WORLD'S LIFESPAN OUR CHOLESTEROL COUNTS USED TO BE VERY LOW SAYS TAKAO SUZUKI DIRECTOR OF THE TOKYO METROPOLITAN INSTITUTE OF GERONTOLOGY AFTER WORLD WAR II WE STARTED TAKING ANIMAL FAT NO FEAR OF LOW CHOLESTEROL NOW TODAY'S WORKADAY JAPANESE GRUB INCLUDES HEAVILY MARBLED PORK STEAKS THAT ARE BATTERED BREADED DUNKED IN BOILING GREASE AND SMOTHERED IN A THICK SAUCE CHOLESTEROLLADEN PRAWNS JACKETED IN EGG YOLK AND CRUMBS AFLOAT IN CALDRONS OF OIL AND SELECT WESTERN IMPORTS LIKE FRIED CHEESE BALLS BURGERS AND CHICKEN NUGGETS THEY'RE GOOD FOR YOU FRIED FISH FRIED PORK ANYTHING COOKED IN FATS AND OILS IS A LIFE STRETCHER SAYS HIROSHI SHIBATA WHO DIRECTED THE INSTITUTE'S 16YEAR STUDY FOR JAPANESE LONGEVITY HE SAYS THE FUTURE IS NOT PESSIMISTIC IF LONG LIFE IS JUST A QUESTION OF LARD THE FUTURE JAPAN MAY MAKE SHANGRILA LOOK LIKE A HOSPICE CONSIDER THE LOCAL ADAPTATIONS OF WESTERN FARE LIKE THE AMERICAN DOG A SKEWERED HOT DOG COATED IN PANCAKE BATTER AND DEEP FRIED OR THE FATTY PORK WRAPPED WITH CHEESE AND OFFERED DEEPFRIED ON A BUN BY ONE FASTFOOD JOINT TRADITIONAL JAPANESE GERONTOLOGISTS MAY FIND THESE FATS OF LIFE HARD TO SWALLOW THEY HAVE LONG CHAMPIONED THE HEALTHFUL EATING OF YUZURIHARA A MOUNTAINOUS JAPANESE DISTRICT WIDELY KNOWN FOR ITS BARLEYEATING OLDSTERS YUZURIHARA IS HELD UP AS A MODEL FOR HEALTHY LIVING THROUGH WHOLE GRAINS YEAH THEY'VE GOT A LOT OF PEOPLE OVER 70 SAYS DR SHIBATA BUT THAT'S BECAUSE ALL THE YOUNG PEOPLE HAVE LEFT TOWN IT'S EASY TO SEE WHY WHEN I WAS YOUNG I ATE BARLEY THREE TIMES A DAY SAYS MATSUHEI SADO AN 86YEAROLD YUZURIHARITE I ATE BARLEY AS AN AFTERNOON SNACK BACK THEN THE REMOTE VILLAGE DIDN'T HAVE MUCH ELSE TO MUNCH HOW DOES HE MANAGE TODAY I DON'T WANT TO EAT ANY MORE BARLEY MR SADO SAYS I LOVE MEAT ESPECIALLY PORK I REALLY LOVE THE OILY FAT PARTS BUT BEFORE PORKING OUT AT HOME THERE'S THIS TO CONSIDER JAPAN IS STILL AT THE LOW END OF THE UNCTUOUSNESS SCALE JAPANESE DAILY FAT INTAKE AVERAGES 60 GRAMS THE RESEARCHERS SAY COMPARED WITH ABOUT 140 GRAMS A DAY IN THE US SO SOME FAT IS GOOD THE DOCTORS SAY BUT DON'T GO WHOLE HOG 9307090029 930709 THE END OF BANKING AS WE KNOW IT LOSING GROUND BANKS' DECLINING ROLE IN ECONOMY WORRIES FED MAY HURT FIRMS IT COULD WEAKEN USEFULNESS OF MONETARY POLICY CUT FUNDS FOR SMALL BUSINESS DEPOSITORS RUN HIGHER RISKS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE WHICH BEGAN CURING THE BANKING INDUSTRY'S IMMEDIATE ILLS TWO YEARS AGO WITH LOW INTEREST RATES NOW IS WORRYING ABOUT THE PATIENT'S LONGTERM HEALTH IN THE PAST 20 YEARS COMMERCIAL BANKS' SHARE OF US FINANCIAL ASSETS HAS DECLINED TO 245 FROM NEARLY 40 THE BANKING INDUSTRY IS BECOMING IRRELEVANT ECONOMICALLY AND IT'S ALMOST IRRELEVANT POLITICALLY SAYS WILLIAM ISAAC A FORMER CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP WHO NOW HEADS SECURA GROUP A WASHINGTON CONSULTING FIRM FED CHAIRMAN ALAN GREENSPAN IS SOUNDING ALARMS AS BANKS' BEST CUSTOMERS ARE BEING STOLEN AWAY BY LESSREGULATED BROKERAGE FIRMS MUTUAL FUNDS FINANCE COMPANIES AND INDUSTRIAL GIANTS SUCH AS GENERAL ELECTRIC CO PUBLIC POLICY SHOULD BE CONCERNED WITH THE DECLINE IN THE IMPORTANCE OF BANKING HE HAS SAID RECENTLY THE ISSUES ARE TOO IMPORTANT FOR THE FUTURE GROWTH OF OUR ECONOMY AND THE WELFARE OF OUR CITIZENS ANALYSTS IN GOVERNMENT AND OUT WORRY THAT THE BANKS' SLIDE COULD WEAKEN THE FED'S ABILITY TO INFLUENCE THE ECONOMY THROUGH MONETARY POLICY INCREASE THE SIZE AND COMPLEXITY OF RISKS THE FED MUST GET UNDER CONTROL IN A STOCKMARKET CRASH OR SIMILAR CRISIS HURT SMALL AND MEDIUMSIZED BUSINESSES THAT DEPEND PRIMARILY ON BANKS FOR LOANS AND FINANCIAL ADVICE REDUCE ACCESS TO TRADITIONAL BANKING OFFICES BY SPURRING CONSOLIDATION AMONG THE NATION'S 11300 COMMERCIAL BANKS WITH INTEREST RATES AT THE LOWEST LEVELS IN DECADES BANKS' PROFITS ARE SOARING BECAUSE THEIR COST OF FUNDS HAS DECLINED FAR MORE THAN THEIR RETURNS ON LOANS AND INVESTMENTS AND BECAUSE THE LOW RATES HAVE BAILED OUT SOME TROUBLED BORROWERS BUT THOSE RATES ARE ALSO AGGRAVATING A LONGTERM PROBLEM INVESTORS ARE SEEKING HIGHER YIELDS BY MOVING MONEY OUT OF FEDERALLY INSURED DEPOSITS AT BANKS AND THRIFTS AND INTO UNINSURED MUTUAL FUNDS SOME EXPERTS WORRY THAT THIS TRADE OF SECURITY FOR HIGHER YIELDS COULD EXPOSE DEPOSITORS TO POTENTIALLY SEVERE LOSSES I THINK THAT BANKS PLAY A FUNDAMENTALLY IMPORTANT ROLE IN SOCIETY THAT IS LESS WELL FILLED BY OTHERS SAYS COMPTROLLER OF THE CURRENCY EUGENE LUDWIG I SEE A DECLINE IN THE BANKING SYSTEM AS A SHIFTING OF RISK RATHER THAN AN ELIMINATION OF RISK TO THE PUBLIC FROM THE GOVERNMENT AT CURRENT TRENDS TOTAL INVESTMENTS IN MUTUAL FUNDS SOON WILL ECLIPSE THE 2 TRILLION IN SAVINGS AND TIME DEPOSITS AT BANKS AND THRIFT INSTITUTIONS ANDREW HOVE THE FDIC'S ACTING CHAIRMAN SAYS THIS SHIFT OF FUNDS RAISES A CRUCIAL QUESTION FOR WASHINGTON POLICY MAKERS AND CREDITSEEKING ENTREPRENEURS WILL BANKS BE ABLE TO ATTRACT THE MONEY BACK AS LOAN DEMAND INCREASES I THINK THEY WILL BUT YOU WONDER IRONICALLY HE ADDS THE GOVERNMENT IS SPENDING 200 BILLION TO INSURE DEPOSITS IN FAILED S&LS JUST WHEN THE IMPORTANCE OF INSURED DEPOSITS ISN'T AS GREAT AS IT WAS TO SAVERS THE CLINTON ADMINISTRATION HAS BEGUN AN AMBITIOUS REVIEW OF THE NATION'S FINANCIAL SYSTEM DOING THE PRELIMINARY WORK ARE MR LUDWIG TREASURY UNDER SECRETARY FRANK NEWMAN AND ELLEN SEIDMAN A STAFFER ON PRESIDENT CLINTON'S NATIONAL ECONOMIC COUNCIL THE STARTING POINT IS MR CLINTON'S BELIEF THAT BANKS AND OTHER FINANCIAL COMPANIES CAN DO MORE TO MEET THE CREDIT NEEDS OF SMALL FIRMS AND CAPITALSTARVED RURAL AND INNERCITY AREAS SO THE REVIEW OFFICIALS SAY WILL LOOK BEYOND SUCH TRADITIONAL BANK REFORM ISSUES AS HOW MUCH REGULATION IS NEEDED TO KEEP BANKS SAFE AND SOUND SHOULD BANKS BE ALLOWED TO DIVERSIFY THEIR RISKS BY AS MANY HAVE LONG DESIRED BRANCHING NATIONWIDE OR OFFERING A BROADER RANGE OF INSURANCE AND SECURITIES MR NEWMAN HAS SAID THE ADMINISTRATION MAY ASK WHETHER MUTUAL FUNDS AND OTHER FINANCIAL COMPANIES SHOULD BE REQUIRED TO MEET COMMUNITYINVESTMENT STANDARDS LIKE THOSE IMPOSED ON BANKS MS SEIDMAN HAS BEGUN DISCUSSING WAYS TO ENCOURAGE PENSION FUNDS AND INSURANCE COMPANIES TO INVEST IN LONGTERM URBANRENEWAL AND COMMUNITYDEVELOPMENT PROGRAMS ANOTHER ISSUE IS WHETHER TO SEEK FEDERAL REGULATION OF INSURANCE WHICH IS CURRENTLY SUPERVISED AT THE STATE LEVEL WHITE HOUSE OFFICIALS HAVE READ A TIGHTLY REASONED BUT CONTROVERSIAL STUDY FROM THE ECONOMIC POLICY INSTITUTE A LIBERAL THINK TANK THE PAPER BY JANE D'ARISTA AND TOM SCHLESINGER CONTENDS THAT ALL FINANCIAL INSTITUTIONS SHOULD OPERATE UNDER THE SAME REGULATIONS INCLUDING CAPITAL AND RESERVE REQUIREMENTS AND FAIRLENDING STANDARDS AT A TIME WHEN BANKS SAY REGULATION SHOULD BE RELAXED SO THEY CAN OPERATE MORE LIKE SECURITIES FIRMS THE PAPER SEEKS THE OPPOSITE THE IMPOSITION OF BANKTYPE REGULATION OVER THE PARALLEL FINANCIAL SYSTEM OF MUTUAL FUNDS INVESTMENT BANKS AND INSURERS THAT ARE PERFORMING BANKING FUNCTIONS THE ADMINISTRATION ISN'T EXPECTED TO GO NEARLY SO FAR AND AT ANY RATE NO DECISIONS ARE LIKELY UNTIL NEXT SPRING AT THE EARLIEST IF MR CLINTON DOES SEEK BASIC REGULATORY CHANGES THE ADMINISTRATION AND CONGRESS WILL GET EMBROILED IN THE MOTHER OF ALL TURF WARS AS FINANCIAL COMPANIES AND THEIR REGULATORS FIGHT FOR ADVANTAGE SAYS BERT ELY A BANK CONSULTANT TWO FORCES INNOVATION AND REGULATION EXPLAIN BANKING'S DECLINE MANY OF THE INNOVATIONS STARTED IN THE LATE 1970S WHEN AN INFLATIONDRIVEN SURGE IN INTEREST RATES AND FEDERAL LIMITS ON RATES BANKS COULD PAY ON DEPOSITS DROVE BORROWERS AND DEPOSITORS ALIKE AWAY FROM BANKS MONEYMARKET MUTUAL FUNDS BANKS' SALES OF HOME MORTGAGES TO THE SECONDARY MARKET TO COLLATERALIZE SECURITIES AND BLUECHIP CORPORATIONS' TENDENCY TO MEET SHORTTERM CASH NEEDS BY SELLING COMMERCIAL PAPER RATHER THAN BANK LOANS ALL TOOK OFF AS BANKS LOST THEIR MOST CREDITWORTHY CUSTOMERS THEY BEGAN TO CHASE HIGHER RETURNS BY LENDING TO RISKIER BORROWERS REALESTATE DEVELOPERS THIRD WORLD NATIONS AND CORPORATIONS SCRAMBLING TO FINANCE MULTIBILLIONDOLLAR BUYOUTS CHARGEOFFS OF BAD LOANS ROSE STEADILY THROUGHOUT THE 1980S AND SO DID BANK FAILURES MEANWHILE MISMANAGED DEREGULATION NEARLY DESTROYED THE S&L INDUSTRY AFTER A DECADE OF DEREGULATION CONGRESS BEGAN TO IMPOSE NEW SAFETY RULES ON DEPOSITORY INSTITUTIONS FEARING THAT SKYROCKETING BANK FAILURES WERE ABOUT TO DRAIN THE BANK INSURANCE FUND CONGRESS PASSED IN 1991 A LAW SHARPLY INCREASING THE SCOPE AND COST OF BANK REGULATION WHEN MAKING LOANS BANKERS FACE CAPITAL DOCUMENTATION AND COLLATERALIZATION RULES THAT DON'T APPLY TO NONBANK LENDERS IN ADDITION THE FED REQUIRES BANKS TO HOLD NONINTERESTEARNING RESERVES OF 10 AGAINST CHECKING ACCOUNTS AND OTHER TRANSACTION BALANCES THE FDIC IMPOSES A DEPOSITINSURANCE PREMIUM AVERAGING 248 CENTS UP THREEFOLD OVER FOUR YEARS ON EACH 100 OF DOMESTIC DEPOSITS ONE REASON MONEYMARKET MUTUAL FUNDS CAN PAY DEPOSITORS HIGHER RETURNS THAN BANKS CAN IS THAT THEY DON'T FACE SUCH EXPENSES THE DIVERSION OF MONEY FROM BANKS TO MUTUAL FUNDS IS COMPLICATING MONETARY POLICY THE RELATIONSHIP BETWEEN MONEY AND THE ECONOMY MAY BE UNDERGOING A SIGNIFICANT TRANSFORMATION MR GREENSPAN SAYS IF THIS IS TRUE THE LIABILITIES OF DEPOSITORY INSTITUTIONS WILL NOT BE AS GOOD A GAUGE OF FINANCIAL CONDITIONS AS THEY ONCE WERE SO THE FED IS TRYING TO DEVISE NEW MOREUSEFUL MONEYSUPPLY GAUGES A BROADER PROBLEM IS THAT THERE ARE SO MANY WAYS TO CREATE CREDIT OUTSIDE OF THE BANKING SYSTEM THAT MONETARY POLICY IS OF DECLINING RELEVANCE MR ELY SAYS WHEN THE FED LAUNCHED ITS WAR AGAINST INFLATION BY SHARPLY SLOWING GROWTH OF THE MONEY SUPPLY 14 YEARS AGO IT FOUND IT COULDN'T CHOKE OFF CREDIT TO WILLING BORROWERS IT COULD ONLY FORCE THEM TO PAY MORE THE ECONOMIC POLICY INSTITUTE PAPER ALSO CONTENDS THAT THE SURGE OF FINANCIAL ASSETS OUTSIDE OF THE BANKING SYSTEM AFFECTS THE PRIMARY ROLE OF BANKS IN TRANSMITTING MONETARY POLICY AND DEPLOYING CENTRALBANK LIQUIDITY TO SMOOTH VOLATILITY PREVENT DISRUPTIONS AND MANAGE CRISES FED OFFICIALS DENY THAT THE CENTRAL BANK IS LOSING ITS LEVERAGE OVER THE ECONOMY AS LONG AS THE FED RETAINS UNFETTERED POWER TO ACT AS LENDER OF LAST RESORT IT CAN PROVIDE THE LIQUIDITY NECESSARY TO QUELL A FINANCIAL CRISIS JUST AS IT RESPONDED TO THE 1987 STOCKMARKET CRASH IN 1991 WALL STREET FIRMS FOUGHT FOR AND WON LEGISLATION STRENGTHENING THE FED'S ABILITY TO LEND DIRECTLY TO TROUBLED BROKERAGE FIRMS BUT OFFICIALS AGREE THAT THE FLOW OF ASSETS AND DEPOSITS FROM THE BANKING SYSTEM POSES A WIDER RANGE OF RISKS THE FEDERAL RESERVE BOARD IS DEVOTING MORE ENERGY TO POLICING THE 7 TRILLION MARKET IN DERIVATIVES THE NEW FINANCIAL PRODUCTS THAT LINK BANKS INVESTMENT FIRMS AND CORPORATIONS IN EFFORTS TO HEDGE AGAINST CHANGES IN INTEREST RATES STOCK PRICES COMMODITY PRICES AND CURRENCIES ONE OF THE FUNDAMENTAL CHANGES THAT INCREASED SAVING AND INVESTMENT OUTSIDE OF INSURED DEPOSITS HAS WROUGHT IS THE SPREADING OF RISK MILLIONS OF PEOPLE HAVE BRANCHED OUT FROM PASSIVELY HOLDING DEPOSITS IN BANKS AND THRIFTS AND INDIRECTLY OWNING SECURITIES THROUGH SUCH INTERMEDIARIES AS PRIVATE AND PUBLIC PENSION FUNDS TO BECOMING DIRECT PARTICIPANTS PRIMARILY THROUGH MUTUAL FUNDS SAYS HENRY KAUFMAN A WALL STREET ECONOMIST KNOWN FOR GLOOMY PREDICTIONS HE WARNS THAT THE HOUSEHOLD SECTOR MAY NOT APPRECIATE ALL THE RISKS IT'S TAKING ON WITH THE RESULT THAT IT MAY ACT QUITE UNPREDICTABLY IF THERE IS A SUDDEN UPHEAVAL IN THE FINANCIAL MARKETS THAT THREATENS TO INFLICT HUGE LOSSES IN ITS SAVINGS IF THIS WERE TO HAPPEN HE ADDS POLITICIANS MIGHT FACE PRESSURE TO FORCE THE FED TO SUPPORT STOCK AND BOND PRICES IN FACT HOWEVER HUGE AMOUNTS OF MONEY DIDN'T FLEE MUTUAL FUNDS FOR BANK DEPOSITS AFTER THE DOW JONES INDUSTRIAL AVERAGE PLUNGED 500 POINTS IN OCTOBER 1987 FIDELITY INVESTMENTS AND OTHER FUND GROUPS FOUND THAT CUSTOMERS MOVED MONEY FROM STOCK FUNDS TO MONEYMARKET FUNDS WITHIN THE SAME FAMILY BUT IT'S WORTH NOTING THAT IN 1987 MUTUALFUND HOLDINGS TOTALED JUST 752 BILLION COMPARED WITH 18 TRILLION TODAY THE FED'S GOAL IS TO MANAGE AND LIMIT RISK NOT TO ELIMINATE IT MR GREENSPAN BELIEVES THAT CONGRESS WENT TOO FAR WITH ITS 1991 LAW TIGHTENING REGULATION IF MINIMIZING RISKS TO TAXPAYERS IS INTERPRETED AS MINIMIZING BANK FAILURES THEN WE ARE VERY LIKELY TO DETER BANKS TO AN EXCESSIVE DEGREE FROM ACCEPTING THE KINDS OF RISK THAT CREATE THE VALUE OF THEIR FRANCHISES HE SAYS THE OPTIMAL DEGREE OF BANK FAILURE IS NOT ZERO AND IN ALL LIKELIHOOD NOT EVEN CLOSE TO ZERO THE BANKING INDUSTRY IS PUSHING REGULATORYRELIEF BILLS IN CONGRESS ARGUING THAT LOWER COSTS ENABLE THEM TO MAKE MORE LOANS HOWEVER THE CHAIRMEN OF BOTH THE HOUSE AND SENATE BANKING COMMITTEES OPPOSE WEAKENING THE SAFETY AND SOUNDNESS MEASURES THAT THEY HELPED CRAFT IN 1991 IN ADDITION THE CLINTON ADMINISTRATION ISN'T READY TO SUPPORT BROAD BANKING LEGISLATION THIS YEAR INSTEAD MR LUDWIG HAS LAUNCHED AN EFFORT TO WEED OUT UNNECESSARY REGULATIONS GOVERNMENT HAS LAYERED ON BANKING A MOUNTAIN OF REGULATIONS THAT ARE OFTEN DUPLICATIVE SUPERFLUOUS OR OTHERWISE WASTEFUL HE SAYS HE NOTES FOR EXAMPLE THAT THE OFFICE OF THE COMPTROLLER OF THE CURRENCY USES SEVEN DIFFERENT DEFINITIONS OF BANK CAPITAL WE CAN MAINTAIN SAFETY AND SOUNDNESS WHILE LOWERING REGULATORY COST HE SAYS BASICALLY HE IS STUDYING WAYS TO MOVE AWAY FROM ONESIZEFITSALL REGULATION STRONGLY CAPITALIZED BANKS AND SMALL BANKS THOSE THAT POSE THE LEAST RISK TO THE FINANCIAL SYSTEM WOULD GET MORE FREEDOM TO MAKE LOANS WITH REDUCED PAPERWORK AND ADMINISTRATIVE COSTS AND TO OFFER INSURANCE AND OTHER NEW PRODUCTS SOME OF THE CHANGES WOULD REQUIRE LEGISLATION BESIDES LESS REGULATION BANKS WANT TO BE UNSHACKLED FROM RULES THAT PREVENT THEM FROM EXPANDING THEIR ACTIVITIES AS INVESTMENT BANKERS INSURANCE AGENTS STOCKBROKERS AND MUTUALFUND SALESMEN EXPANSION INTO THESE BUSINESSES WOULD ENABLE THEM TO EARN MORE INCOME FROM COMMISSIONS AND FEES REDUCE THEIR RELIANCE ON VOLATILE INTERESTRATE SPREADS AND HELP DIVERSIFY THEIR RISKS BUT TWO POWERFUL HOUSE DEMOCRATS BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ OF TEXAS AND ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL OF MICHIGAN MAY STAND IN THE WAY THEY WORRY THAT THE HEAVY MOVEMENT OF BANKS INTO MUTUALFUND SALES MAY BE CONFUSING CONSUMERS ABOUT WHICH BANK PRODUCTS ARE INSURED AND WHICH AREN'T AND NATIONWIDE BRANCH BANKING HAS BEEN A NONSTARTER FOR YEARS BANKERS ARE FRUSTRATED BY THEIR LACK OF SUCCESS IN WINNING RELIEF FROM CONGRESS THE NATION HAS GOT A VESTED INTEREST IN KEEPING THE BANKING INDUSTRY ALIVE AND COMPETITIVE SAYS ROBERT GILLESPIE THE CHAIRMAN OF SOCIETY CORP A CLEVELAND BANK HOLDING COMPANY IT REALLY ISN'T IN ANYBODY'S INTEREST TO KILL THE GOOSE THAT USED TO LAY THE GOLDEN EGG 9307090028 930709 CREDIT MARKETS INVESTORS' SEARCH FOR HIGHER YIELDS HAS SPAWNED MOREVOLATILE INVERSE FLOATER IN MUNI REALM BY THOMAS T VOGEL JR AND BARBARA DONNELLY GRANITO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WITH LONGTERM INTEREST RATES AT THEIR LOWEST LEVELS IN 16 YEARS INVESTORS' APPETITE FOR HIGHERYIELDING AND RISKIER SECURITIES CONCOCTED BY WALL STREET SEEMS INSATIABLE ONE OF THE LATEST IN A WAVE OF NEW CHARGEDUP SECURITIES BEING MARKETED TO INVESTORS LOOKING TO BOOST YIELDS IS THE LEVERAGED INVERSE FLOATER MUNICIPAL BOND A TURBOCHARGED VERSION OF INVERSE FLOATER BONDS LIKE THE POPULAR INVERSE FLOATERS THESE SECURITIES PAY MORE THAN PLAINVANILLA BONDS WHEN SHORTTERM RATES FALL AND LESS WHEN THEY RISE BUT LEVERAGED INVERSE FLOATERS GIVE AN EXTRA KICK TO A MARKET BET ON EVEN LOWER SHORTTERM INTEREST RATES BECAUSE THEIR YIELDS ARE MANY TIMES MORE SENSITIVE TO RATE CHANGES THAN REGULAR INVERSE FLOATERS FOR INSTANCE WHILE NORMAL MUNI INVERSE FLOATERS WILL GAIN 1 IN YIELD FOR EVERY 1 DROP IN MARKET INTEREST RATES LEVERAGED INVERSE FLOATERS COULD MOVE AS MUCH AS 9 FOR EVERY 1 RATE DECLINE ACCORDING TO MOODY'S INVESTORS SERVICE INC WITH THE YIELD OF THE 30YEAR TREASURY BOND DROPPING TO 665 YESTERDAY THE LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 CORPORATIONS HAD LITTLE PROBLEM FINDING BUYERS FOR NEARLY 4 BILLION OF NEW BONDS THEY SOLD YESTERDAY THAT STRONG DEMAND HAS PUSHED DOWN YIELDS ON EVEN LOWRATED CREDITS YESTERDAY FOR EXAMPLE CHASE MANHATTAN CORP SOLD 150 MILLION OF SUBORDINATED FLOATING RATE NONCALLABLE 10YEAR NOTES DESIGNED TO FLOAT QUARTERLY AT A SPREAD OF JUST 0125 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE WHICH WAS 3313 YESTERDAY THE NOTES WERE RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP BUT COMPARED TO THE LEVERAGED INVERSE FLOATER EVEN LOWRATED DEBT MAY SEEM TAME OVER THE PAST SIX MONTHS OR SO THERE HAS BEEN A WAVE OF THESE SECURITIES SOLD ACCORDING TO GARY GRAY MANAGING DIRECTOR IN THE MUNICIPAL NEW PRODUCTS GROUP AT LEHMAN BROTHERS LEHMAN HAS SOLD OVER 200 MILLION OF THESE SECURITIES IN BOTH PUBLIC AND PRIVATE PLACEMENTS SAID MR GRAY WHICH IS JUST A DROP IN THE BUCKET COMPARED TO THE MORE THAN 10 BILLION OF INVERSE FLOATERS SOLD SINCE 1990 BUT THE MARKET SEEMS TO BE GROWING ACCORDING TO MOODY'S PERHAPS AS MUCH AS 750 MILLION OF LEVERAGED INVERSE FLOATERS HAVE BEEN SOLD SO FAR MERRILL LYNCH & CO HAS ALSO SOLD AN UNDISCLOSED AMOUNT OF MUNI LEVERAGED INVERSE FLOATERS IN PRIVATE PLACEMENTS TO TAXEXEMPT INVESTORS IN RECENT MONTHS BOTH MERRILL AND SHEARSON LEHMAN BROTHERS ARE GEARING UP TO MAKE MUNI LEVERAGED INVERSE FLOATERS MORE BROADLY AVAILABLE TO TAXEXEMPT INVESTORS PENDING REGULATORY APPROVAL THIS IS HOW MANY OF THEM WORK WALL STREET DEALERS BUY FIXEDRATE MUNICIPAL BONDS ON THE SECONDARY MARKET AND PUT THEM INTO A TRUST VEHICLE CASH FLOWS FROM THOSE BONDS ARE CARVED UP AND USED TO CREATE TWO NEW CLASSES OF SECURITIES FLOATING RATE NOTES AND INVERSE FLOATING RATE NOTES THE FLOATING RATE NOTES RECEIVE INTEREST PEGGED TO AN INDEX OF SHORTTERM MUNI RATES THE INVERSE FLOATERS MEANWHILE GET EVERYTHING THAT'S LEFT WHICH AMOUNTS TO THE SUM OF THE INTEREST RATE ON THE UNDERLYING BONDS PLUS THE DIFFERENCE BETWEEN THE FIXED RATE AND SHORTTERM MUNI RATES THE LOWER SHORTTERM RATES GO THE MORE THAT'S LEFT IN THE POT FOR THE INVERSE FLOATERS NORMALLY THE TRUSTS ISSUE AN EQUAL AMOUNT OF FLOATERS AND INVERSE FLOATERS BUT IF SHORTTERM FLOATERS MAKE UP MORE THAN 50 OF A PARTICULAR DEAL THE INVERSE FLOATER PORTION BECOMES LEVERAGED A PROGRAM BY MERRILL LYNCH FOR INSTANCE COULD ALLOW SHORTTERM FLOATERS TO MAKE UP AS MUCH AS 90 OF THE SECURITIES ISSUED ACCORDING TO MOODY'S THE LEVERAGED INVERSE FLOATERS THAT WOULD RESULT FROM SUCH AN EXTREME SPLIT WOULD BE NINE TIMES AS VOLATILE AS NORMAL INVERSE FLOATERS ACCORDING TO MR GRAY OF LEHMAN NOBODY HAS YET SOLD LEVERAGED INVERSE FLOATER MUNICIPAL BONDS WITH LEVERAGE THAT MAKES THE BONDS ANY MORE THAN TWO TIMES AS VOLATILE AS NORMAL INVERSE FLOATERS THE FLOATER NOTES ARE AN ATTRACTIVE INVESTMENT FOR CORPORATIONS LOOKING TO PARK CASH IN TAXEXEMPT INVESTMENTS OTHER BIG BUYERS OF THE FLOATER NOTES ARE INSTITUTIONAL INVESTORS LOOKING FOR A SUBSTITUTE FOR SHORTTERM MUNICIPAL SECURITIES WHICH HAVE BEEN IN SHORTSUPPLY RECENTLY TREASURY NOTES AND BONDS ENDED WITH MODERATE GAINS YESTERDAY PARTLY IN REACTION TO FALLING COMMODITIES PRICES THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/4 POINT TO 106 A GAIN OF MORE THAN 250 FOR A BOND WITH A 1000 FACE AMOUNT ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE FELL TO 665 DOWN FROM 667 ON WEDNESDAY THE 10YEAR NOTE ROSE LESS THAN 1/4 POINT TO 103 19/32 TO YIELD 575 DOWN FROM 577 DURING THE AFTERNOON TRADERS WHO HAD SOLD NOTES AND BONDS EARLIER IN THE DAY REVERSED THOSE POSITIONS AS COMMODITIES PRICES HEADED LOWER THE WIDELY WATCHED COMMODITIES RESEARCH BUREAU INDEX ENDED DOWN 125 POINTS AT 21598 INVESTORS FEAR RISING COMMODITIES PRICES BECAUSE THEY OFTEN SUGGEST HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN LATE YESTERDAY THE FEDERAL RESERVE REPORTED THAT ITS CLOSELY WATCHED M2 MONEYSUPPLY AGGREGATE PLUNGED 111 BILLION IN THE WEEK ENDED JUNE 28 THAT PUTS THE M2 GROWTH RATE AT 04 FROM THE FOURTHQUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 NEARLY 4 BILLION OF NEW BONDS WERE SOLD YESTERDAY BY US CORPORATIONS MEANWHILE IN THE EUROBOND MARKET CANADIAN AND EUROPEAN INVESTORS EACH BOUGHT ABOUT ONETHIRD OF THE PROVINCE OF ONTARIO'S 125 BILLION CANADIAN DOLLAR US9735 MILLION OFFERING OF 10YEAR GLOBAL BONDS IN WHAT ONE SYNDICATE OFFICIAL CALLED A SUCCESSFUL DEAL ONTARIO LAUNCHED ITS GLOBAL ISSUE OVERNIGHT IN EUROPE AND MET STRONG DEMAND DESPITE ITS RECENT WELLPUBLICIZED BUDGET AND DEBT PROBLEMS THE NEW BONDS CARRY A COUPON OF 775 AND WERE PRICED AT 98125 TO YIELD 070 PERCENTAGE POINT OVER THE 10YEAR CANADIAN GOVERNMENT NOTE WHICH YIELDED ABOUT 727 AS OF LATE YESTERDAY ONLY TWO UTILITIES TAPPED THE LONG END OF THE US BOND MARKET YESTERDAY IN CONTRAST TO THE STREAM OF LONGTERM ISSUERS SEEN EARLIER IN THE WEEK GOVERNMENTSPONSORED AGENCIES PRICED SOME 12 BILLION IN NEW PAPER MOST OF IT FLOATINGRATE ISSUES BANK PAPER ACCOUNTED FOR ANOTHER 900 MILLION ACTIVITY IN THE INVESTMENTGRADE SECONDARY MARKET WAS LIGHT AND PRICES ENDED MOSTLY FLAT SEASONED HIGHYIELD BONDS ALSO WERE THINLY TRADED WITH FEW PRICE CHANGES AMONG MOST ISSUES THE OUTSTANDING 8625 BONDS OF 1996 OF NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC ROSE ANOTHER 5 POINTS TO 52 ON NEWS THAT ITS MACHINISTS UNION HAD MADE A WAGE OFFER TO THE AIRLINE TRADERS SAID THE AIRLINE STRUGGLING TO AVERT BANKRUPTCY RECEIVED CONCESSIONS FROM ITS PILOTS UNION TUESDAY PRICES OF MORTGAGE SECURITIES ENDED MIXED THE 65 MORTGAGE SECURITIES ISSUED BY ALL THREE AGENCIES FINISHED FLAT TO 1/8 POINT FIRMER WHILE 85 AND HIGHER COUPONS ENDED UNCHANGED TO 2/32 LOWER ON THE DAY JUNE PREPAYMENTS ON FEDERAL NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES ROSE TO 12 WHILE JUNE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION PREPAYMENTS WERE NARROWLY MIXED PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID BUT HOLDERS OF DISCOUNT ISSUES BENEFIT WHEN THEIR SECURITIES PREPAY BECAUSE THEY CAPTURE THE DIFFERENCE BETWEEN THE PRICE THEY PAID AND THE PAR PRICE RETURNED DEEPAK NARULA VICE PRESIDENT OF THE MORTGAGE STRATEGIES GROUP AT LEHMAN BROTHERS EXPECTS PREPAYMENTS TO DROP IN JULY BUT NOW THAT RATES HAVE RESUMED THEIR DOWNTREND IN AUGUST AND SEPTEMBER WE'LL PROBABLY SEE ALLTIME HIGHS ON PREPAYMENT SPEEDS FOR COUPONS SUCH AS 75 ISSUES TO 85 ISSUES NEW ISSUANCE OF REAL ESTATE MORTGAGE INVESTMENT CONDUITS WAS SLUGGISH KIDDER PEABODY & CO THE INDUSTRY'S LEADING REMIC UNDERWRITER OFFERED THE 500 MILLION SERIES 1993139 FANNIE MAE REMIC BACKED BY THE AGENCY'S 7 MORTGAGE SECURITIES PAINEWEBBER INC SAID IT DOUBLED THE SIZE OF FANNIE MAE'S 1993133 REMIC ALSO BACKED BY THE AGENCY'S 7 ISSUES TO 600 MILLION 9307090027 930709 CLASSACTION STATUS SOUGHT IN BIAS SUIT AGAINST FLAGSTAR COS LAWYERS FOR THE SIX BLACK SECRET SERVICE AGENTS SUING FLAGSTAR COS FOR RACIAL DISCRIMINATION HAVE FILED AN AMENDMENT TO THEIR LAWSUIT SEEKING CLASSACTION STATUS JUDGE JOSEPH YOUNG IN US DISTRICT COURT IN BALTIMORE ISSUED AN ORDER ALLOWING THE PLANTIFFS' ATTORNEYS TO ADD COMPLAINTS TO THEIR SUIT AGAINST FLAGSTAR AND ITS DENNY'S RESTAURANT CHAIN A RULING ON WHETHER THE SUIT WILL BE GIVEN CLASSACTION STATUS WON'T BE MADE UNTIL SPRING SAID JOHN RELMAN A LAWYER FOR THE AGENTS MR RELMAN SAID THE WASHINGTON LAWYERS COMMITTEE FOR CIVIL RIGHTS FOR WHOM HE WORKS HAS 50 SWORN STATEMENTS FROM BLACKS IN 12 STATES ALLEGING DISCRIMINATION AT DENNY'S THE AGENTS WERE IN UNIFORM AND ON DUTY WHEN THEY STOPPED AT A DENNY'S IN ANNAPOLIS MD FOR BREAKFAST IN APRIL THEIR SUIT FILED IN MAY ALLEGES THEY WEREN'T SERVED ALTHOUGH THEIR WHITE COLLEAGUES WERE SERVED TWICE FLAGSTAR'S DEFENSE IS THAT THIS WAS AN ISOLATED INCIDENT SAID MR RELMAN HE SAID HE KNOWS OF 49 OTHER INCIDENTS AT 33 DENNY'S RESTAURANTS IN THE PAST TWO YEARS WHAT THIS SAYS IS THAT YOU'VE GOT A NATIONWIDE PROBLEM AND A COMPANYWIDE PROBLEM IN A STATEMENT RELEASED YESTERDAY FLAGSTAR DENIED THAT IT DISCRIMINATES AND SAID THE WASHINGTON LAWYERS COMMITTEE AND MR RELMEN WERE MORE INTERESTED IN SEEKING PUBLICITY FOR THEIR LITIGATION RATHER THAN IN LONGTERM RESOLUTIONS FLAGSTAR A SPARTANBURG SC FOODSERVICE COMPANY IN RECENT MONTHS HAS HAD FIVE LAWSUITS FILED AGAINST IT ALLEGING RACIAL DISCRIMINATION AT ITS DENNY'S RESTAURANTS LAST WEEK FLAGSTAR ANNOUNCED THAT IT WOULD COMMIT 1 BILLION TO DOUBLING THE NUMBER OF MINORITYOWNED DENNY'S FRANCHISES TO 107 ADDING HUNDREDS OF AFRICANAMERICAN MANAGERS AND USING MORE MINORITY VENDORS 9307090026 930709 CREDIT RATINGS RYLAND GROUP COLUMBIA MD MOODY'S INVESTORS SERVICE INC SAID IT WAS CONSIDERING A DOWNGRADE OF RYLAND'S DEBT RATINGS BECAUSE OF THE COMPANY'S DIFFICULTIES IN THE HOMEBUILDING BUSINESS THE REVIEW COVERS RYLAND'S BAA3 SENIOR AND BA2 SUBORDINATED DEBT RATINGS ABOUT 150 MILLION OF DEBT IS AFFECTED THE CREDIT AGENCY SAID IT WILL FOCUS ON RYLAND'S STRATEGY FOR INCREASING THE PROFITABILITY OF ITS HOMEBUILDING BUSINESS THE REVIEW ALSO WILL EXAMINE EARNINGS IN THE COMPANY'S FINANCIAL SERVICE BUSINESSES AND ITS ABILITY TO REDUCE DEBT AND IMPROVE DEBT COVERAGE 9307090024 930709 BUSINESS BRIEF NATIONAL MEDICAL ENTERPRISES INC COMPANY SELLS 2 HOSPITALS SUBSTANCE TREATMENT CENTER NATIONAL MEDICAL ENTERPRISES INC SAID IT SOLD TWO PSYCHIATRIC HOSPITALS AND A SUBSTANCEABUSE TREATMENT CENTER TERMS OF THE TRANSACTIONS WEREN'T DISCLOSED NATIONAL MEDICAL IN SANTA MONICA CALIF WHICH HAD SAID A YEAR AGO THAT IT PLANNED TO SELL LEASE OR CONVERT MORE THAN 20 OF ITS PSYCHIATRIC HOSPITALS SAID ITS SARASOTA PALMS HOSPITAL IN FLORIDA WAS SOLD TO COUNTYOWNED SARASOTA MEMORIAL HOSPITAL HEALTH MANAGEMENT ASSOCIATES INC IN NAPLES FLA PURCHASED PARKVIEW HOSPITAL OF TOPEKA KAN NATIONAL MEDICAL SAID AND CENIKOR FOUNDATION IN HOUSTON ACQUIRED NEW BEGINNINGS THE DENVER CHEMICAL DEPENDENCY TREATMENT CENTER NATIONAL MEDICAL SAID IT NOW HAS SOLD OR LEASED 11 FACILITIES UNDER ITS CONTINUING PROGRAM OF REDUCING ITS PSYCHIATRIC HOSPITALS HAS CLOSED SIX OTHERS AND HAS CONVERTED THREE TO OTHER USES 9307090023 930709 BUSINESS BRIEF TEXSCAN CORP CONCERN SIGNS 4YEAR PACT WITH TELECOMMUNICATIONS TEXSCAN CORP SAID IT SIGNED A FOURYEAR CONTRACT VALUED AT AN ESTIMATED 40 MILLION TO PROVIDE EQUIPMENT FOR TELECOMMUNICATIONS INC'S CABLE NETWORK TEXSCAN WHICH IS BASED IN EL PASO TEXAS MAKES ELECTRONIC PRODUCTS FOR THE CABLE TELEVISION INDUSTRY UNDER TERMS OF THE AGREEMENT IT WILL SUPPLY ABOUT 20 OF THE OPTICAL AND RADIO FREQUENCY TRANSMISSION AND DISTRIBUTION PRODUCTS TCI WILL USE IN REBUILDING THE NETWORK A TEXSCAN SPOKESMAN SAID ENGLEWOOD COLOBASED TCI WILL SPEND AS MUCH AS 200 MILLION TO REBUILD THE NETWORK OVER THE FOURYEAR PERIOD THE SPOKESMAN ADDED THAT THE COMPANY'S ESTIMATE OF THE VALUE OF THE CONTRACT WITH TCI IS RELIABLE BUT NOT ASSURABLE 9307090022 930709 BUSINESS BRIEF GUEST QUARTERS HOTELS PARTNERSHIP LETTER OF INTENT IS SIGNED ON MERGER WITH DOUBLETREE DOUBLETREE HOTELS CORP AND GUEST QUARTERS HOTELS PARTNERSHIP SAID THEY HAVE SIGNED A LETTER OF INTENT TO MERGE A MOVE THAT WOULD FORM A 96HOTEL 24000ROOM CHAIN PETER UEBERROTH FORMER COMMISSIONER OF MAJOR LEAGUE BASEBALL AND RICHARD FERRIS FORMER CHAIRMAN OF UNITED AIRLINES BOTH MEMBERS OF BOSTONBASED GUEST QUARTERS HOTELS PARTNERSHIP WILL BE COCHAIRMEN OF THE NEW VENTURE DOUBLETREE IS BASED IN PHOENIX ARIZ FURTHER DETAILS OF THE MERGER WEREN'T DISCLOSED BUT MR FERRIS PROMISED AGGRESSIVE GROWTH ONCE THE MERGER IS COMPLETED THE CURRENT OWNERS OF DOUBLETREE AND GUEST QUARTERS WILL RETAIN OWNERSHIP IN THE MERGED ENTITY A SPOKESMAN FOR CANADIAN PACIFIC LTD MONTREAL WHICH OWNS 80 OF DOUBLETREE THROUGH ITS CP HOTELS & RESORTS UNIT SAID SEVERAL DETAILS REMAIN TO BE WORKED OUT INCLUDING A NAME FOR THE CHAIN 9307090021 930709 GAMBLING LUXOR BETS ON HIGHTECH ENTERTAINMENT BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS THE LUXOR A 30STORY PYRAMID TAKING SHAPE ON THE HORIZON HERE MAY HAVE THE HEART OF A CASINO BUT THROUGH THE WIZARDRY OF SPECIALEFFECTS EXPERT DOUGLAS TRUMBULL THE GLASSCOATED HOTELCASINO COMPLEX WILL HAVE THE SOUL OF A FUTURISTIC AMUSEMENT CENTER THE LUXOR'S DRAMATIC ATRIUM WILL HOUSE MR TRUMBULL'S MOST AMBITIOUS PROJECT TO DATE A SPRAWLING 50 MILLIONPLUS PARTICIPATORY ADVENTURE THAT PROMISES TO BE THE FIRST CASINO ATTRACTION THAT'S ON A PAR WITH OR EVEN BETTER THAN THE BEST OFFERINGS OF DISNEYLAND AND THE UNIVERSAL STUDIOS TOUR CIRCUS CIRCUS ENTERPRISES INC'S 370 MILLION PYRAMID PROJECT AIMS TO DO MORE THAN JUST TAKE CASINO PATRONS ON A RIDE WITH ITS MARRIAGE OF GAMBLING AND CUTTINGEDGE ATTRACTIONS INCLUDING RETAIL TIEINS LUXOR IS BEING TOUTED AS A MAJOR STEP IN THE EVOLUTION FROM GAMBLING HALL TO TRUE ENTERTAINMENT CENTER FOR MR TRUMBULL WHOSE CREDITS INCLUDE SPECIAL EFFECTS FOR 2001 A SPACE ODYSSEY SHOWSCAN HIGHRESOLUTION FILM TECHNOLOGY AND THE NEW BACK TO THE FUTURE ATTRACTION AT UNIVERSAL STUDIOS THE PARTNERSHIP MAY PROVIDE AN IMPORTANT OUTLET FOR FUTURE INNOVATION OVER THE PAST FEW YEARS THE CASINO INDUSTRY HAS BEGUN PUSHING INTO THE BROADER ENTERTAINMENT ARENA DRAWING ON ELEMENTS OF RETAILING THEME PARKS ZOOS MOVIES AND OTHER LEISURETIME ACTIVITIES THE RESULTS INCLUDE SUCH TRAFFIC GENERATORS AS THE WHITE TIGERS AND IMITATION VOLCANO AT THE MIRAGE HOTELCASINO THE LUSH FORUM SHOPPING COMPLEX AT CAESARS PALACE AND THE IWERKS ENTERTAINMENT MOVIE THEATER AND ENTERTAINMENT ATTRACTION AT THE MASHANTUCKET PEQUOT CASINO IN LEDYARD CONN ANOTHER ENTRY THE MGM GRAND'S OZTHEMED HOTEL AND THEME PARK HERE IS STILL UNDER CONSTRUCTION CIRCUS EXECUTIVES AND OTHER INDUSTRY OBSERVERS BELIEVE TECHNOLOGYDRIVEN ENTERTAINMENT COULD BE A MAJOR FACTOR IN THE EXPANSION OF URBAN CASINO ENTERTAINMENT CENTERS ACROSS THE COUNTRY AND POSSIBLY AROUND THE WORLD THEY FIGURE THAT STATEOFTHEART TECHNOLOGY AND WHOLESOME FAMILYSTYLE ENTERTAINMENT MAY HELP PERSUADE POLITICIANS AND CITIZENS TO ACCEPT A LITTLE GAMBLING AS PART OF A BROAD ARRAY OF ENTERTAINMENT AS URBAN AREAS SEARCH FOR NEW JOBS AND FOR ATTRACTIONS OR RETAIL CENTERS TO DRAW LOCALS AND TOURISTS THIS WILL BE THE FUTURE OF GAMBLING AS ENTERTAINMENT SAYS CLYDE TURNER CIRCUS'S PRESIDENT THE LUXOR ATTRACTIONS TRUE TO THE PYRAMID'S ADVENTURE THEME WILL INCLUDE THREE INTERACTIVE EXPERIENCES CASTING VISITORS AS EXPLORERS IN THE PAST PRESENT AND FUTURE IN THE PAST SEQUENCE FLIGHTSIMULATOR TECHNOLOGY TRANSPORTS VISITORS TO AN ARCHAEOLOGICAL DIG AND A HARROWING HIGHSPEED CHASE IN THE PRESENT VISITORS AT A TALK SHOW EXPERIENCE A TOTAL SOLAR ECLIPSE THROUGH A VIVID THREEDIMENSIONAL BROADCAST AND IN THE FUTURE WHERE NATURALLY THE FATE OF THE WORLD HANGS IN THE BALANCE VISITORS GLIMPSE THE YEAR 2300 THROUGH A SEVENSTORY VERTICAL MOVIE SCREEN AND HIGHRESOLUTION THREEDIMENSIONAL COMPUTER IMAGES CREATIVELY SPEAKING MR TRUMBULL SAYS LUXOR OFFERS SOME UNUSUAL BENEFITS IT'S THE FIRST TIME I'VE BEEN ABLE TO INFLUENCE THE ARCHITECTURAL CONFIGURATION OF THE SHOWS INSTEAD OF HAVING TO FIT A NEW CONCEPT INTO AN EXISTING SPACE AT A THEME PARK OR OTHER SITE MR TRUMBULL SAYS THESE ARE IDEAS I'D BEEN WORKING ON FOR YEARS BUT I HAD BEEN UNABLE TO FIND THEM A HOME EVEN WHILE HE WAS DESIGNING EYEOPENING SPECIAL EFFECTS FOR SUCH MOVIES AS BLADE RUNNER AND CLOSE ENCOUNTERS OF THE THIRD KIND MR TRUMBULL SAYS HIS DESIRE TO CREATE ENVELOPING BIGGERTHANLIFE EXPERIENCES PUSHED HIM FURTHER INTO RIDE AND ATTRACTION TECHNOLOGIES THE MOVIE INDUSTRY WAS GETTING SMALLER AND I WANTED TO CREATE BIGGER AND BIGGER EXPERIENCES MR TRUMBULL SAYS OF THE FILM EXHIBITION BUSINESS'S MOVE TOWARD SMALLER THEATERS AND SCREENS AND ITS RELUCTANCE TO SUPPORT 70MM HIGHSPEED FILM TECHNOLOGY THE THREE ATTRACTIONS ARE WOVEN INTO AN ENTERTAINMENT FLOOR THAT INCLUDES SEVERAL RESTAURANTS STORES AND A SEGA VIDEO ARCADE THAT WILL HOUSE GAMES NOT YET WIDELY AVAILABLE IN THE US IN FACT TO GET FROM ONE SEGMENT OF THE ADVENTURE TO ANOTHER VISITORS WILL TROOP THROUGH A RETAIL STORE STOCKED WITH LUXOR LOGO MERCHANDISE AND OTHER GOODS AT AN AVERAGE MAJOR PARK MERCHANDISE IS 25 OF THE ACTION IF IT'S DONE RIGHT SAYS HARRISON PRICE A THEME PARK AND ENTERTAINMENT CONSULTANT AS ENTERTAINMENT'S ROLE IN THE GAMBLING BUSINESS EXPANDS OPERATORS WILL HAVE TO USE THEIR BIGTICKET DRAWS AS MAJOR PROFIT CENTERS TRADITIONALLY CASINOS HAVE LOOKED AT BOXING SINGERS COMEDIANS AND OTHER FORMS OF ENTERTAINMENT AS LOSS LEADERS TO DRAW PATRONS TO THE TABLES THE TYPICAL CIRCUS CIRCUS CASINO IS NO EXCEPTION IT LOSES MONEY ON ITS FAMOUS CHEAP BUFFETS MAKES A MODEST SUM ON HOTEL ROOMS AND CLEANS UP AT THE SLOT MACHINES BUT THE LUXOR ATTRACTIONS WHICH WILL COST TICKET BUYERS 10 TO 12 FOR THE WHOLE EXPERIENCE AND TAKE A TOTAL OF SLIGHTLY MORE THAN AN HOUR NOT INCLUDING LINES WILL MAKE MONEY CIRCUS'S MR TURNER SAYS FOR MR TRUMBULL AND HIS ILK THOUGH THE MOST SIGNIFICANT DEVELOPMENT IS THE TREMENDOUS GROWTH OF LEGAL GAMBLING THE GAMING BUSINESS IS REALLY WHERE ENTERTAINMENT INNOVATION IS TAKING PLACE SAYS MR PRICE HIS RESEARCH SHOWS THAT PERCAPITA SPENDING ON GAMBLING WENT FROM 45 IN 1982 TO ABOUT 106 IN 1991 OR AN ANNUAL GROWTH RATE OF ABOUT 10 SOME CAUTION THAT WHIZBANG ATTRACTIONS CAN'T COMPENSATE FOR OTHER PROBLEMS SUCH AS A POOR LOCATION OR A LACK OF HOTEL ROOMS JOHN ROHS A CASINO ANALYST AT WERTHEIM SCHRODER & CO PREDICTS THAT BIG CONVENTION OR TOURISM CITIES LIKE CHICAGO ATLANTA AND MIAMI MAY TRY THE CASINOENTERTAINMENT FORMAT TO APPEAL TO BOTH THEIR EXISTING BUSINESS AND THE SURROUNDING POPULATION BUT HE CAUTIONS OVERAMBITIOUS BACKWATER TOWNS TO KEEP IN MIND THAT LAS VEGAS ALREADY HAS 22 MILLION VISITORS A YEAR STILL CIRCUS SEES LONGTERM GROWTH IN THE CONCEPT THE SHELF LIFE OF THESE ATTRACTIONS IS PRETTY LONG MR TURNER SAYS THE WHOLE EXPERIENCE WITH THE DRAMATIC SETTING AND THE RETAIL AND ALL WILL BE BIGGER THAN THE SUM OF ITS PARTS IF WE DO IT RIGHT AND AS THE TECHNOLOGY DEVELOPS AND THE INCREMENTAL COSTS GO DOWN MR TURNER SAYS OPERATORS LIKE CIRCUS WILL BE ABLE TO FRESHEN THEIR OFFERINGS SOME DAY THERE WILL BE A LIBRARY OF SPECIALEFFECT FILM SEQUENCES MR TURNER SAYS IT WON'T BE THE SAME OLD THING 9307090020 930709 WHO'S NEWS SALOMON'S HIGDON LEAVES WALL STREET TO BECOME DEAN OF A BUSINESS SCHOOL BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEO I HIGDON JR A SENIOR SALOMON BROTHERS INC EXECUTIVE WHO COHEADED THE FIRM'S GLOBAL INVESTMENTBANKING UNIT QUIT WALL STREET AFTER 20 YEARS TO BECOME DEAN OF A BUSINESS SCHOOL THE DEPARTURE OF MR HIGDON 47 YEARS OLD NEARLY COMPLETES THE PARING OF THE MANAGEMENT IN PLACE BEFORE SALOMON'S 1991 TREASURYAUCTION BIDDING SCANDAL NOW ONLY ONE OF THE TOP NINE EXECUTIVES IN SALOMON'S 1990 ANNUAL REPORT REMAINS AT THE SECURITIES FIRM MR HIGDON HELPED RUN SALOMON'S 900MEMBER INVESTMENT BANKING DEPARTMENT FOR 3 1/2 YEARS INCLUDING ITS LOWEST POINT FOLLOWING THE SCANDAL DURING THAT TIME SALOMON'S PRESENCE IN LEADMANAGING STOCKUNDERWRITING TRANSACTIONS PLUNGED ALTHOUGH THE FIRM'S MARKET SHARE RECENTLY HAS REBOUNDED AND THE UNIT NOW IS PROFITABLE MORALE SANK SO LOW IN EARLY 1992 THAT THE SALOMON INC UNIT GUARANTEED A 15 INCREASE IN THE BONUS POOL FOR MANY INVESTMENT BANKERS TO STEM A GROWING TIDE OF DEFECTIONS FOR THE PAST 16 MONTHS MR HIGDON SHARED HIS DUTIES RUNNING INVESTMENT BANKING WITH RICHARD J BARRETT WHO NOW WILL SERVE AS THE DIVISION'S SOLE CHIEF SINCE NOVEMBER 1991 MR HIGDON HAS BEEN A MEMBER OF SALOMON'S EXECUTIVE COMMITTEE WHICH SETS STRATEGY AND RUNS THE FIRM'S DAILY BUSINESS MR HIGDON HAD A 1992 PAY PACKAGE OF ABOUT 2 MILLION PEOPLE FAMILIAR WITH THE FIRM SAID MR HIGDON WILL TAKE A SIZABLE PAY CUT IN HIS NEW POST AS DEAN OF THE COLGATE DARDEN GRADUATE SCHOOL OF BUSINESS ADMINISTRATION AT THE UNIVERSITY OF VIRGINIA BUT HE REFUSED TO DISCLOSE HIS NEW COMPENSATION PACT SAYING ONLY THERE'S A BIG SPREAD IN PAY MR HIGDON SAID HE WANTS TO ENHANCE THE GLOBAL REPUTATION OF THE DARDEN SCHOOL ONE OF THE NATION'S TOPRATED BUSINESS SCHOOLS HE IS ONE OF ONLY A HANDFUL OF SENIOR WALL STREET EXECUTIVES TO JOIN ACADEMIA WILLIAM E MAYER FORMER CHIEF EXECUTIVE OFFICER OF FIRST BOSTON CORP IS DEAN OF THE BUSINESS SCHOOL AT THE UNIVERSITY OF MARYLAND AT COLLEGE PARK THE OPPORTUNITY TO RUN A TOPFLIGHT BUSINESS SCHOOL DOESN'T COME ALONG EVERY DAY MR HIGDON SAID IN AN INTERVIEW THE KEY IS THE FACULTY MR HIGDON SAID HE CAME WITHIN SPITTING DISTANCE OF PURSUING A TEACHING CAREER AFTER GRADUATING IN 1972 FROM THE UNIVERSITY OF CHICAGO BUSINESS SCHOOL BUT HE SAID TEACHING DIDN'T PAY WELL ENOUGH SO HE WENT TO WALL STREET BEFORE HIS BUSINESS CAREER MR HIGDON SERVED FOR TWO YEARS IN THE PEACE CORPS TEACHING AND DOING COMMUNITY DEVELOPMENT WORK IN MALAWI AFRICA MR HIGDON HAS SPENT MUCH OF THE PAST YEAR IN THE ROLE OF MR OUTSIDE TRYING TO DRUM UP INVESTMENTBANKING BUSINESS FOR SALOMON BUT AMONG HIS BIGGEST CLIENTS ONLY BETHLEHEM STEEL CORP HAS DONE MUCH EQUITY FINANCING THROUGH SALOMON RECENTLY THE STEEL CONCERN HAS RAISED A TOTAL OF NEARLY 500 MILLION IN STOCK AND CONVERTIBLEPREFERRED UNDERWRITINGS THE PAST YEAR MR BARRETT WHO ALSO IS A MEMBER OF SALOMON'S EXECUTIVE COMMITTEE HAS BEEN AT THE FIRM FOR 16 YEARS IN A VARIETY OF INVESTMENTBANKING ROLES 9307090019 930709 CANADA TO SELL 8 BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY 120 BILLION CANADIAN DOLLARS US9346 MILLION OF 8 BONDS DUE JUNE 1 2023 PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9307090018 930709 TECHNOLOGY & MEDICINE BRISTOLMYERS CANCER RESEARCHERS ARE OPTIMISTIC OVER A TREATMENT BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS AT BRISTOLMYERS SQUIBB CO MAY HAVE TAKEN A MAJOR STEP TOWARD THE LONGSOUGHT MAGIC BULLET AGAINST CANCER THE RESEARCHERS DESCRIBED EXPERIMENTS IN WHICH A MONOCLONAL ANTIBODY COMBINED WITH A CANCER DRUG CURED MICE AND RATS OF TRANSPLANTED HUMAN LUNG AND COLON CANCERS THE EXPERIMENTS WERE NOTABLE IN THAT THE CANCERS WERE SOLID TUMORS AND THE DRUGANTIBODY COMBINATION WAS MORE EFFECTIVE THAN THE CANCER DRUG ALONE THE DRUGANTIBODY COMBINATION ALSO WAS EFFECTIVE OVER A WIDE RANGE OF DOSAGES AND THERE WERE HINTS THAT NORMAL TISSUES WOULDN'T BE AS BADLY DAMAGED AS THEY ARE IN CANCER CHEMOTHERAPY WE WERE TREMENDOUSLY EXCITED THROUGHOUT THE EXPERIMENTS SAID PAMELA TRAIL THE IMMUNOLOGIST WHO HEADED UP THE RESEARCH TEAM BUT THE BOTTOM LINE WILL BE WHAT HAPPENS IN THE CLINICAL TRIALS SHE SAID THE NEW YORK PHARMACEUTICAL FIRM HOPES TO FILE A REQUEST WITH THE US FOOD AND DRUG ADMINISTRATION WITHIN THE NEXT SIX MONTHS TO BEGIN TRYING THE DRUGANTIBODY COMBINATION IN CANCER PATIENTS DR TRAIL SAID MONOCLONAL ANTIBODIES HAVE HELD PROMISE AS MAGIC BULLETS OR BIOLOGICAL GUIDED MISSILES AGAINST CANCER SINCE THEY WERE DEVELOPED ALMOST TWO DECADES AGO THEY ARE LABORATORY VERSIONS OF THE ANTIBODIES THE BODY PRODUCES TO FIGHT VIRUSES AND OTHER INVADERS MONOCLONAL ANTIBODIES ARE DESIGNED TO HOME EXCLUSIVELY ON SPECIFIC PROTEINS THAT DOT THE SURFACE OF CELLS IN THIS INSTANCE THE UNIQUE PROTEINS THAT ARE THE HALLMARKS OF CANCER CELLS MONOCLONAL ANTIBODIES CAN ZIP TO CANCER CELLS AND TRIGGER THEIR DESTRUCTION A SCORE OR MORE OF DRUG AND BIOTECHNOLOGY COMPANIES ARE DEVELOPING MONOCLONAL ANTIBODIES AGAINST PARTICULAR CANCERS SO FAR THEY'VE BEEN MOST EFFECTIVE AGAINST CANCERS OF THE BLOOD SYSTEM SUCH AS CERTAIN KINDS OF LYMPHOMA BUT RESEARCHERS ALSO HAVE ENVISIONED USING MONOCLONAL ANTIBODIES TO CARRY CANCER DRUGS AND RADIOACTIVE ATOMS DIRECTLY TO CANCER CELLS THEREBY SPARING NORMAL CELLS FROM DAMAGE UNTIL NOW HOWEVER SUCH DRUGANTIBODY CONJUGATES HAVE FALLEN SHORT OF HOPES PARTICULARLY IN THE TREATMENT OF SOLID TUMORS THE BRISTOLMYERS RESEARCHERS NOTED IN SOME CASES THE DRUGANTIBODY CONJUGATES MUST BE GIVEN AT THE HIGHEST DOSES A PERSON OR ANIMAL CAN TOLERATE TO BE EFFECTIVE IN OTHER CASES THE DRUGANTIBODY CONJUGATE ISN'T ANY MORE EFFECTIVE THAN THE CANCER DRUG ALONE IN THEIR REPORT APPEARING IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE THE BRISTOLMYERS RESEARCHERS SAID THEY ATTACHED THE CANCER DRUG DOXORUBICIN TO A MONOCLONAL ANTIBODY DEVELOPED BY INGEGARD AND KARLERIK HELLSTROM AT THE COMPANY'S SEATTLE LABORATORIES THE ANTIBODY MADE PARTLY OF MOUSE AND PARTLY OF HUMAN PARTS HOMES IN ON A PROTEIN THAT IS ABUNDANT ON THE SURFACES OF HUMAN LUNG COLON AND BREAST CANCERS WHEN GIVEN TO MICE THAT HAD RECEIVED TRANSPLANTS OF HUMAN CANCER CELLS THE DRUGANTIBODY CONJUGATE PRODUCED CURES IN SEVEN OF EIGHT MICE WITH HUMAN LUNGCANCER TRANSPLANTS AND SEVEN OF NINE MICE WITH TRANSPLANTS OF HUMAN COLONCANCER CELLS AN ADDITIONAL MOUSE IN EACH INSTANCE SHOWED A PARTIAL REGRESSION OF THE RESPECTIVE TUMORS THE CONJUGATE WAS FAR MORE EFFECTIVE THAN DOXORUBICIN ALONE WHICH ONLY SLOWED THE GROWTH OF THE LUNG CANCERS AND WAS INEFFECTIVE AGAINST THE COLON CANCERS THE RESEACHERS REPORTED IT ALSO WAS EFFECTIVE OVER A RANGE OF DOSAGES THE CONJUGATE WAS LESS EFFECTIVE IN MICE WITH BREASTCANCER TRANSPLANTS CURING ONLY FIVE OF NINE DR TRAIL HOWEVER SAID THAT EXPERIMENT WAS LESS MEANINGFUL THAN THE OTHERS SINCE THE RESEARCHERS AVOIDED GIVING THE ESTROGEN HORMONE TO THE MICE WHICH WOULD HAVE MADE THE BREAST CANCERS MORE CLOSELY RESEMBLE HUMAN CANCERS TWO TRICKS IMPROVED THE CONJUGATE'S PERFORMANCE THE RESEARCHERS SAID ONE WAS AN IMPROVED CHEMICAL LINKER THAT BOUND THE DRUG TO THE ANTIBODY MAKING IT MORE STABLE AS IT CIRCULATED IN THE BLOOD THE OTHER WAS A CHEMICAL TRICK THAT CAUSED THE DRUG TO BE QUICKLY RELEASED THE MOMENT THE CANCER CELL INGESTED THE CONJUGATE 9307090017 930709 SHARPER IMAGE SALES FELL IN JUNE SAN FRANCISCO SHARPER IMAGE CORP SAID JUNE SALES FELL 53 TO 126 MILLION FROM 133 MILLION IN THE YEAREARLIER PERIOD COMPARABLESTORE SALES DROPPED 85 WHILE CATALOG SALES INCREASED 117 THE RETAILER OF SPECIALTY GADGETS SAID 9307090016 930709 POLITICS & POLICY CLINTON CAPTURES THE JAPANESE MEDIA WOWS POPULACE WITH A STRONG IMAGE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE BILL CLINTON SHOW MAY GET MIXED REVIEWS IN AMERICA BUT IT WOWED THEM IN JAPAN IMPRESSIVE WAS THE WORD MAUREEN FLANAGAN AN EXECUTIVE AT DIGITAL EQUIPMENT CORP KEPT REPEATING TO DESCRIBE THE ATTENTION MR CLINTON AND HIS TOP ECONOMIC AIDES LAVISHED ON US BUSINESS EXECUTIVES DURING A PACKED PEPSESSION BREAKFAST FRIDAY MORNING AND SHE WASN'T ALONE THE JAPANESE PRESS WAS WALLTOWALL CLINTON EDITORIALS PRAISED HIS CALL FOR IMPROVED RELATIONS WITH ASIAN NATIONS NEWS CAMERAS FOCUSED ON HIS EVERY MOVE FROM HIS STRUTS DURING GROUP OF SEVEN SUMMIT MEETINGS TO HIS UNSCHEDULED STROLL TO WATCH AN AMATEUR BASEBALL GAME HE WAS EVEN SEATED NEXT TO THIS COUNTRY'S NEWEST CELEBRITY CROWN PRINCESS MASAKO DURING THE GLITTERING ROYAL BANQUET AT THE IMPERIAL PALACE PART OF THIS IMPRESSION OF SUCCESS WAS METICULOUSLY CHOREOGRAPHED THE WHITE HOUSE'S BEEFEDUP PUBLICRELATIONS OPERATION WAS WORKING OVERTIME TO PUT THE PRESIDENT INTO SITUATIONS THAT WOULD PORTRAY HIM AS A VIBRANT WORLD LEADER BUT MR CLINTON ALSO DELIVERED ALTHOUGH HE DIDN'T GET EVERYTHING HE WANTED HE MANAGED TO GET SOME OTHER COUNTRIES TO CUT TARIFFS PERSUADE HIS COLLEAGUES TO SHELL OUT MORE AID THAN EXPECTED TO RUSSIA AND KEEP ALIVE HOPES FOR SIGNIFICANT CHANGES IN THE US TRADING RELATIONSHIP WITH ITS MOST IMPORTANT PARTNER IN THIS PART OF THE WORLDJAPAN SENIOR US OFFICIALS SAID THE VISIT WAS AS GOOD AS WE DARED TO HOPE ALL OF THIS CONTRASTED SHARPLY WITH THE PREVIOUS VISIT TO TOKYO BY A US PRESIDENT IN AN EMBARRASSING INCIDENT LAST YEAR A FATIGUED AND ILL PRESIDENT BUSH VOMITED ON PRIME MINISTER KIICHI MIYAZAWA DURING A STATE DINNER THIS YEAR AN INDEFATIGABLE AMERICAN PRESIDENT IS DEALING FROM STRENGTH AND A WEAKENED JAPANESE PRIME MINISTER IS COURTING HIM TO REACH A TRADE AGREEMENT AT MR MIYAZAWA'S REQUEST THE TWO WILL MEET OVER DINNER BEFORE THE VISIT ENDS FEW WERE HAPPIER WITH THE CHANGE THAN US BUSINESS EXECUTIVES BASED HERE THE AMERICAN CHAMBER OF COMMERCE IN JAPAN PACKED AN EARLY MORNING BREAKFAST TO HEAR TOP US ECONOMIC OFFICIALS AND LATER THE PRESIDENT HIMSELF PLEDGE TO OPEN THE OFTENCLOSED JAPANESE MARKETS TO THEIR PRODUCTS AND SERVICES MR CLINTON EVEN TOLD ERNEST HIGA OWNER OF THE DOMINO'S PIZZA OUTLETS IN TOKYO THAT HE WOULD PERSONALLY HELP HIS SALES AFTER MR HIGA DESCRIBED PIZZA TOPPINGS OF SQUID SCALLOPS AND TUNA MR CLINTON SAID BEFORE THE END OF THE DAY I AM GOING TO ORDER ONE OF THOSE PIZZAS 9307090015 930709 BUSINESS BRIEF METROBANK AGREEMENT SIGNED OUTLINING CAPITAL ASSET REQUIREMENTS METROBANK POSTED FLAT SECONDQUARTER EARNINGS AND SAID IT SIGNED A MEMORANDUM OF UNDERSTANDING WITH REGULATORS REQUIRING THE BANK TO MEET CAPITAL AND ASSETREDUCTION TARGETS SECONDQUARTER NET INCOME WAS 11 MILLION OR 23 CENTS A SHARE THE LOS ANGELES BANK SAID THE MEMORANDUM STIPULATES THAT IT REDUCE ITS LEVEL OF PROBLEM LOANS AND REAL ESTATE AND MAINTAIN A CAPITAL RATIO OF AT LEAST 65 THE AGREEMENT ALSO CALLS FOR METROBANK TO OBTAIN APPROVALS FROM THE FEDERAL DEPOSIT INSURANCE CORP AND THE CALIFORNIA BANKING DEPARTMENT TO MAKE DIVIDEND PAYMENTS METROBANK RECENTLY RECEIVED APPROVAL TO PAY ITS 15CENTASHARE QUARTERLY DIVIDEND ON JULY 20 THE COMPANY EXPECTS TO CONTINUE TO RECEIVE SUCH APPROVALS A SPOKESWOMAN SAID AFTER THE ANNOUNCEMENT EARLY YESTERDAY METROBANK SHARES FELL 625 CENTS TO 1025 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING 9307090014 930709 ROSS STORES' SALES ROSE NEWARK CALIF ROSS STORES INC SAID SALES FOR THE FIVEWEEK PERIOD ENDED JULY 3 ROSE 14 TO 111 MILLION FROM 97 MILLION A YEAR EARLIER SALES AT STORES OPERATED MORE THAN A YEAR BY THE OFFPRICE APPAREL RETAILER ROSE 4 9307090013 930709 MARKETING & MEDIA ADVERTISING NETWORKS' UPFRONT' TAKE SHRINKS AS ADVERTISERS SEEK FLEXIBILITY BY KEVIN GOLDMAN DESPITE INITIAL HOPES FOR GROWTH IN ADVANCE SALES OF AIR TIME FOR NEXT SEASON'S PRIMETIME SCHEDULE THE FOUR BROADCAST NETWORKS ARE LIKELY TO SEE A THIRD STRAIGHT ANNUAL DECLINE WITH MORE THAN TWOTHIRDS OF THE ORDERS ALREADY UNDER THEIR BELTS THE CONSENSUS AMONG NETWORK AND MADISON AVENUE EXECUTIVES IS THAT THE TOTAL TAKE IN SOCALLED UPFRONT ORDERS WILL DECREASE 56 TO 34 BILLION FROM LAST YEAR THAT WOULD MARK THE LOWEST TOTAL FOR UPFRONT ORDERS SINCE 1988 AND A 21 DROP FROM THE PEAK OF 43 BILLION IN 1990 JUST LAST SPRING SOME BROADCASTERS PRIVATELY PREDICTED THAT THE UPFRONT MARKET WOULD ACTUALLY GROW 56 THIS YEAR TO 38 BILLION THAT WOULD HAVE BEEN WELCOME RELIEF GIVEN THE MARKET'S 14 DECLINE IN 1991 FOLLOWED BY A 27 DECLINE IN 1992 BUT ADVERTISERS HAVE TURNED CAUTIOUS RECENTLY AS THE ECONOMY HAS FALTERED UNDER THE SIXMONTHOLD CLINTON ADMINISTRATION AND SOME EXECUTIVES QUESTION WHETHER THE ANNUAL SUMMER RITUAL OF UPFRONT DICKERING WILL EVER RETURN TO ROBUST GROWTH BECAUSE SPONSORS WANT MORE FLEXIBILITY IN HOW THEY PLAN THEIR AD SPENDING THERE HAS BEEN A STRUCTURAL CHANGE IN HOW CLIENTS SPEND MONEY SAYS JON MANDEL A SENIOR VICE PRESIDENT AT GREY ADVERTISING INDEED ADVERTISING AGENCY EXECUTIVES SAY THEIR CLIENTS ARE NOW WILLING TO HOLD BACK ON EARLY COMMITMENTS IN FAVOR OF PURCHASING COMMERCIAL TIME IN THE SOCALLED SCATTER MARKET JUST WEEKS OR EVEN DAYS BEFORE THE ACTUAL AIR DATE OF PRIMETIME SHOWS IN PAST YEARS OF AGGRESSIVE PRICE INCREASES AT THE BIG NETWORKS ADVERTISERS RUSHED TO LOCK IN UPFRONT ORDERS FEARING THAT LATER SCATTER PRICES WOULD BE EVEN HIGHER SCATTER PRICING WAS ALWAYS UNCERTAIN AND FOR SHOWS THAT BECAME POPULAR ENDED UP HIGHER THAN THE RATES FOR ADVANCE PURCHASES BUT IN THE PAST TWO YEARS SCATTER PRICES HAVEN'T BEEN EXCEEDING UPFRONT PRICES LATELY SAYS JEROME DOMINUS SENIOR VICE PRESIDENT AT WPP GROUP'S J WALTER THOMPSON NO ADVERTISER HAS GOTTEN KILLED BY BEING IN THE SCATTER MARKET YET THE REPORTS OF THE DEATH OF UPFRONT HAVE BEEN GREATLY EXAGGERATED COUNTERS LARRY HOFFNER SENIOR VICE PRESIDENT FOR SALES AT NBC TO DATE ABOUT 265 BILLION OF THE EXPECTED 36 BILLION IN UPFRONT ORDERS HAS BEEN COMMITTED NETWORK EXECUTIVES SAY PRIVATELY CBS THE NO 1 NETWORK IN HOUSEHOLD RATINGS HAS WRITTEN ABOUT 1 BILLION IN SALES ORDERS CAPITAL CITIES/ABC WHOSE ABC NETWORK IS NO 1 AMONG MEN AND WOMEN 18 TO 49 YEARS OLD A KEY TARGET FOR ADVERTISERS HAS TAKEN IN MORE THAN 900 MILLION IN ORDERS GENERAL ELECTRIC'S NBC WHICH HAS FALLEN INTO THIRD PLACE HAS WRITTEN ABOUT 450 MILLION AND INDUSTRY OFFICIALS ESTIMATE THAT NEWS CORP'S FOX NETWORK HAS TAKEN IN ABOUT 300 MILLION IN UPFRONT COMMITMENTS THE UPFRONT MARKET USUALLY ACCOUNTS FOR 70 OR MORE OF AD SPENDING WITH THE BALANCE GOING INTO SCATTER THIS YEAR AD AGENCY EXECUTIVES ESTIMATE THE PROPORTION IS 60 FOR UPFRONT AND 40 FOR SCATTER IT'S A SLOW MARKETPLACE SAYS JOEL M SEGAL AN EXECUTIVE VICE PRESIDENT AT INTERPUBLIC GROUP'S MCCANNERICKSON NO ONE IS RACING TO SPEND MONEY AND THE INCREASES WHEN THEY COME ARE SMALL NBC'S MR HOFFNER CONFIRMS THE CALM THERE IS NO FRENZY NO THREEO'CLOCKINTHEMORNING FRANTIC PHONE CALLS FROM A CLIENT WHO SAYS HE HAS TO BE IN A CERTAIN SHOW ON AVERAGE THE NETWORKS ARE SEEKING PRICE INCREASES OF 5 ON THEIR POPULAR SHOWS BUT ACCORDING TO INDUSTRY OFFICIALS THE AVERAGE INCREASE THEY ARE GETTING HAS BEEN LESS THAN THAT ABC FOR INSTANCE IS ASKING FOR INCREASES OF 2 TO 3 ONE AD EXECUTIVE SAYS ABC CBS AND FOX DECLINED TO COMMENT OFFICIALLY GENERALLY THE MAJOR NETWORK ADVERTISERS INCLUDING AUTO MAKERS BEER AND SODA COMPANIES AND PACKAGEDGOODS CONCERNS AREN'T INCREASING AD BUDGETS AD BUDGETS FOR THE MOVIE STUDIOS ARE GROWING AND FOX GIVEN ITS YOUNGER AUDIENCE IS THE BENEFICIARY THIS ISN'T A BOON YEAR SAYS MR DOMINUS A FORMER CBS SALES EXECUTIVE WHO IS KNOWN ON THE OTHER SIDE OF THE SALES FENCE FLEXIBILITY IS THE KEY ADVERTISERS ARE RELUCTANT TO SPEND AS MUCH IN UPFRONT AS THEY HAD IN THE PAST MR DOMINUS AND OTHER AD EXECUTIVES SAY AD SPENDING MAY REACH LAST YEAR'S LEVEL OF 36 BILLION BUT IT WON'T BE SPENT AS HEAVILY IN THE UPFRONT MARKET ANOTHER WRINKLE IN THE UPFRONT NEGOTIATING IS CBS'S SCHEDULED BROADCAST OF THE 1994 WINTER OLYMPICS FROM LILLEHAMMER NORWAY IN FEBRUARY INDUSTRY OFFICIALS ESTIMATE THAT ABOUT 350 MILLION OF AD SPENDING IS SITTING ON THE SIDELINE AS ADVERTISERS HOLD BACK IN ANTICIPATION OF THE HIGH PROFILE AND LAST TIME AT LEAST RATINGS BONANZA THE OLYMPICS OFFER ABC CBS AND NBC SHOULD BE PLEASED WITH ANY PRICE INCREASE THEY RECEIVE AD AGENCY EXECUTIVES SAY AT THE CONCLUSION OF THE 199293 SEASON IN APRIL THE THREE NETWORKS' COMBINED SHARE OF PRIMETIME VIEWING FELL TO A NEW LOW OF JUST 60 OF THE TOTAL VIEWING AUDIENCE SAATCHI & SAATCHI CO'S AC&R ADVERTISING OF NEW YORK NAMED STEVE BENNETT PRESIDENT AND CHIEF EXECUTIVE OFFICER DESIGNATING HIM AS THE SUCCESSOR TO THE AGENCY'S COFOUNDER ALVIN CHERESKIN MR BENNETT 45 YEARS OLD TAKES OVER DAYTODAY CONTROL OF THE AGENCY MR CHERESKIN 65 THE FORMER CHIEF EXECUTIVE REMAINS CHAIRMAN AND BECOMES EXECUTIVE CREATIVE DIRECTOR DOUG FIDOTEN EXECUTIVE VICE PRESIDENT WAS NAMED DIRECTOR OF CLIENT SERVICES LINDA BURPEE EXECUTIVE VICE PRESIDENT WAS NAMED DIRECTOR OF CREATIVE SERVICES HARRY KOENIG THE VICE CHAIRMAN AND CHIEF OPERATING OFFICER WHO MANY EXECUTIVES THOUGHT WOULD SUCCEED MR CHERESKIN RETAINS HIS TITLES IN THE RESTRUCTURING SHELDON MARKS AND MARTIN MITCHELL TWO OTHER VICE CHAIRMEN WERE NAMED EXECUTIVE VICE PRESIDENTS IN CHARGE OF NEW BUSINESS AND ACCOUNT PLANNING RICHARDS GROUP OF DALLAS WON THE ESTIMATED 40 MILLION TO 50 MILLION HOME DEPOT ACCOUNT ENDING A HOTLY CONTESTED THREEWAY PITCH FOR THE ATLANTABASED RETAIL CHAIN'S ADVERTISING ADMARKETING INC A CENTURY CITY CALIF SHOP WAS THE INCUMBENT ON THE ACCOUNT RICHARDS WON THE CREATIVE PORTION WESTERN INTERNATIONAL MEDIA WAS EARLIER AWARDED THE MEDIA PORTION RICHARDS BESTED TWO OTHER CONTENDERS FOR THE ACCOUNT TEMERLIN MCCLAIN THE DALLAS OFFICE OF BOZELL AND EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER OF NEW YORK LETTERMAN EFFORT CBS SAID IT WILL AIR THE FIRST OF 80 YES 80 PROMOTIONAL SPOTS FOR LATE SHOW WITH DAVID LETTERMAN DURING THE MAJOR LEAGUE BASEBALL ALLSTAR GAME BROADCAST ON TUESDAY WITH THE THEME SAME DAVE BETTER TIME NEW STATION THE SPOTS ARE SNIPPETS OF MR LETTERMAN'S SIGNATURE WISECRACKING STYLE SOME TAKE THE FORM OF AN INTERVIEW WITH A ROLLING STONE REPORTER SPOTS FOR LOCAL STATIONS PUSH THE SHOW'S 1130 PM TIME SLOT WITH THE THEME NOBODY FOLLOWS THE NEWS LIKE DAVID LETTERMAN THE SHOW BEGINS AUG 30 CONVERSE WITH SIX MONTHS TO GO BEFORE THE SUPER BOWL INTERCO'S CONVERSE UNIT UNVEILED PLANS TO LAUNCH A NEW BASKETBALL SHOE DURING THE BROADCAST WITH A NEW 30SECOND COMMERCIAL IN ITS GRANDMAMA CAMPAIGN WHICH FEATURES LARRY JOHNSON OF THE CHARLOTTE HORNETS CROSSDRESSING THE SPOT WILL RUN DURING THE FIRST HALF CONVERSE SAID WHO'S NEWS GORDON L LINK 56 IS RETIRING AS EXECUTIVE VICE PRESIDENT AND WORLDWIDE MEDIA DIRECTOR AT INTERPUBLIC GROUP'S MCCANNERICKSON THE AGENCY SAID HE REMAINS A CONSULTANT TO THE AGENCY IRA CARLIN 45YEAROLD EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THE AGENCY'S NORTH AMERICAN OPERATIONS WAS NAMED WORLDWIDE MEDIA DIRECTOR FINALISTS FAYVA SHOES A UNIT OF J BAKER INC NARROWED THE REVIEW FOR ITS ESTIMATED 5 MILLION ACCOUNT TO FIVE FINALISTS THEY ARE HOUSTON EFFLER & PARTNERS AND INGALLS QUINN & JOHNSON BOTH OF BOSTON AND THE NEW YORK AGENCIES JORDAN MCGRATHM CASE & TAYLOR KOREY KAY & PARTNERS AND WELLS RICH GREENE BDDP THE INCUMBENT IS ROSSIN GREENBERG SERONICK OF BOSTON 9307090012 930709 WHO'S NEWS BLESSINGS CORP BLESSINGS CORP BEDMINSTER NJ EM MILLER 48 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER A NEW POST OF THIS PLASTICS CONCERN DR MILLER WAS ALSO DESIGNATED THE SUCCESSOR TO IVAN E BECKER 64 WHO WILL RETIRE IN MAY 1994 AS PRESIDENT AND CHIEF EXECUTIVE DR MILLER WAS MOST RECENTLY GENERAL MANAGER FOR ENVIRONMENTAL HEALTH AND SAFETY OF GENERAL ELECTRIC CO'S PLASTICS DIVISION 9307090011 930709 FOREIGN EXCHANGE DOLLAR CLIMBS AGAINST YEN AMID SIGNS US MAY SOFTEN ITS STANCE ON CURRENCY BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE AGAINST THE YEN AS SENTIMENT SPREAD IN THE MARKET THAT THE US MIGHT NOT WANT AS STRONG A YEN AS MANY TRADERS HAD BELIEVED THE DOLLAR WAS MIXED AGAINST OTHER MAJOR CURRENCIES WHILE THE MARK SHOWED NEW VIGOR AGAINST ITS CONTINENTAL EUROPEAN COUNTERPARTS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17023 MARKS DOWN FROM 17065 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10855 YEN UP FROM 10765 YEN STERLING WAS TRADING AT 14960 UP FROM 14935 IN EARLY TRADING FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10860 YEN AND AT 17035 MARKS TRADERS SAID THE MARKET CONTINUED TO MANIFEST THE CHOPPY SLUGGISH TONE IT HAS DISPLAYED ALL WEEK THEY CITED AN ABSENCE OF SIGNIFICANT FRESH NEWS THE DOLLAR'S GAINS AGAINST THE JAPANESE CURRENCY FOR EXAMPLE CAME MORE FROM SHIFTING MARKET VIEWS OF US POLICY TOWARD THE YEN THAN FROM FUNDAMENTAL DEVELOPMENTS DEALERS SAID THERE IS A GROWING SEGMENT OF THE MARKET THAT BELIEVES CLINTON'S POLICY OF TALKING THE YEN HIGHER IS OVER SAID BELAL KHAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO INDICATIONS THAT THE CLINTON ADMINISTRATION FAVORS A STRONG YEN AS A MECHANISM FOR RESTRAINING JAPAN'S BIG TRADE SURPLUSES HAVE BEEN AT THE CENTER OF THE JAPANESE CURRENCY'S STEEP APPRECIATION AGAINST THE DOLLAR SINCE FEBRUARY TRADERS NOTED NOW THE YEN SEEMS TO BE BECOMING LESS AND LESS OF A TOOL TO MANIPULATE JAPAN WITH MR KHAN SAID SPECIFICALLY A SMALL BUT PERCEPTIBLE SENSE OF OPTIMISM IN THE MARKET ABOUT TALKS BETWEEN THE US AND JAPAN FOR A NEW BILATERAL TRADE FRAMEWORK HELPED THE DOLLAR RISE AGAINST THE YEN MR KHAN SAID IF SOME TYPE OF AGREEMENT CAN BE REACHED THE YEN'S UPWARD MOMENTUM WOULD WANE MR KHAN SAID MEASURES OTHER THAN A STRONG YEN PROBABLY WOULD BE USED TO TRIM JAPAN'S TRADE SURPLUSES HE ADDED PRESIDENT CLINTON WILL DINE WITH JAPANESE PRIME MINISTER KIICHI MIYAZAWA FRIDAY FOR FURTHER TRADE DISCUSSIONS BUT MR CLINTON CAUTIONED AGAINST CREATING FALSE HOPES ON THE PROSPECTS FOR ARRIVING AT AN ACCORD ELSEWHERE THE BANK OF JAPAN WAS WIDELY REPORTED TO HAVE BOUGHT DOLLARS IN TWO ROUNDS OF INTERVENTION AROUND 107 YEN IN ASIAN DEALINGS AN UNEXPECTED DROP IN US UNEMPLOYMENT CLAIMS FAILED TO PROVIDE A NEW IMPETUS FOR ACTIVITY SAID DAVID SOLIN MANAGER OF FOREIGN EXCHANGE SALES AT TORONTO DOMINION BANK INITIAL CLAIMS FOR JOBLESS BENEFITS FELL 12000 IN THE WEEK ENDED JULY 3 THE LABOR DEPARTMENT REPORTED DEALERS HAD EXPECTED AN INCREASE OF 2000 DATA INDICATING CONTINUING SOFTNESS IN THE FRENCH ECONOMY SPARKED SELLING OF THE FRANC AGAINST THE MARK THAT SELLING LATER SPILLED OVER TO PULL DOWN MOST OTHER EUROPEAN CURRENCIES AGAINST THE GERMAN CURRENCY DEALERS SAID FRANCE'S GROSS DOMESTIC PRODUCT CONTRACTED 06 IN THE FIRST QUARTER COMPARED WITH A REVISED 05 CONTRACTION IN THE PREVIOUS QUARTER AND A GAIN OF 09 IN THE FIRST QUARTER OF 1992 ALTHOUGH THE DATA WERE IN LINE WITH MARKET EXPECTATIONS IT LED TO FRANC SELLING BECAUSE IT CONFIRMED THE ABSOLUTE NECESSITY OF LOWERING FRENCH RATES FURTHER SAID IVAN SANDS MANAGER OF FOREIGN EXCHANGE TRADING AND SALES AT CREDIT LYONNAIS WHEN A NATION LOWERS ITS INTEREST RATES DEPOSITS DENOMINATED IN ITS CURRENCY TEND TO BECOME LESS APPEALING TO INVESTORS 9307090010 930709 CONTINENTAL JUNE TRAFFIC DOWN HOUSTON CONTINENTAL AIRLINES SAID JUNE TRAFFIC FELL 29 FROM A YEAR EARLIER THE CARRIER SAID IT FLEW 38 BILLION REVENUE PASSENGER MILES LAST MONTH DOWN FROM 395 BILLION IN JUNE 1992 ONE REVENUE PASSENGER MILE IS LOGGED FOR EACH PAYING PASSENGER WHO FLIES ONE MILE YEAR TO DATE CONTINENTAL HAS FLOWN 208 BILLION REVENUE PASSENGER MILES DOWN 1 FROM A YEAR AGO ITS YEARTODATE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 618 DOWN FROM 634 CONTINENTAL ALSO SAID THE PERCENTAGE OF AVAILABLE SEATS OCCUPIED DURING JUNE ROSE TO 675 FROM 67 A YEAR EARLIER 9307090009 930709 WESTERN GERMANY'S PRICES WIESBADEN GERMANY WESTERN GERMANY'S JUNE CONSUMER PRICE INDEX WAS RAISED TO A FINAL 02 MONTHONMONTH INCREASE FROM THE PRELIMINARY 01 INCREASE THE FEDERAL STATISTICS OFFICE ALSO BOOSTED THE YEARONYEAR CONSUMER INFLATION RATE TO A FINAL 42 RISE FROM THE PRELIMINARY 41 CLIMB 9307090008 930709 LEISURE & ARTS YOUTHS MATE INSIDE BELTWAY BY GENE GRABOWSKI WASHINGTON IN THIS TOWN OF SUBTLE POWER GAMES THERE'S ONE PLACE WHERE THE ACTION IS TOO SLOW EVEN FOR CSPAN THE GLEAMING NEW US CHESS CENTER LOCATED WITHIN A FIVEMINUTE JOG OF PRESIDENT CLINTON'S WHITE HOUSE IS AN OASIS OF QUIET AND CALM NEAR THE HEART OF WASHINGTON'S BUSTLING SELFIMPORTANT CORRIDOR OF BOXY BAUHAUS OFFICE BUILDINGS A STEADILY GROWING CADRE OF DEVOTEES TO THE ROYAL GAME GATHER NIGHTLY AT THE CENTER TO PAIR OFF AND MENTALLY BATTLE OVER CHESSBOARDS CHESSCENTER REGULARS ARE AN ODD MIX OF NATTY PROFESSIONALS DILIGENT BUREAUCRATS HIGHSCHOOL STUDENTS AND UNDEREMPLOYED CHESS BUMS STEREOTYPICAL CHESS NERDS ABOUND UNWARY VISITORS MAY FIND THEMSELVES BLINDED BY REFLECTIONS FROM POCKET PROTECTORS PLAYERS WEAR STRIPES WITH PLAID TIES STAINED WITH TEA OR CRANBERRY JUICE WORN BROWN CORDUROY PANTS AND BEATUP RUNNING SHOES IN COLORS NATURE NEVER INTENDED SOME OF THE CHESS ADDICTS SPORT RAGGED SWEATSHIRTS WITH SLOGANS SUCH AS PAWN POWER OR MASTER OF THE LONG DIAGONAL WE'LL ALWAYS BE THE GEEKS SHRUGS WAYNE SPON A THIRTYSOMETHING REGULAR AT THE CENTER THE BRAIN BEHIND THIS MOTLEY OPERATION IS DAVID MEHLER A SLIGHT BESPECTACLED 42YEAROLD CRIMINAL DEFENSE LAWYER WHO QUIT HIS PRACTICE TO OPEN THE CENTER LAST SUMMER MR MEHLER SWUNG THE DEAL TO OBTAIN NEARLY 13000 SQUARE FEET OF RENTFREE BASEMENT SPACE IN THE NEW BUILDING AT 1501 M STREET THE LEASE WHICH RUNS UNTIL THE YEAR 2012 IS THE RESULT OF A DC ZONING LAW REQUIRING THE BUILDING'S DEVELOPER TO RESERVE A PORTION OF THE PROJECT FOR A NONPROFIT ORGANIZATION INSIDE THE CENTER LOOKS LIKE A SPOTLESS HIGHSCHOOL CAFETERIA TIGHTLY WRAPPED AND PAINTED PIPES RUN ALONG THE CEILING EIGHTFOOTLONG TABLES GIRDED BY STEELLEGGED PLASTIC CHAIRS SIT IN SILENT ROWS ALL THE WALLS ARE BEIGE EXCEPT FOR THE AROMA OF FRESHLY BREWING COFFEE 25 CENTS A CUP THE AIR IS STILL AND LIFELESS NO SMOKING DRINKING OR GAMBLING IS PERMITTED I DON'T WANT A POOLHALL IMAGE MR MEHLER SNIFFS INSTEAD HE CARPETED A ROOM SET OFF BEHIND GLASS DOORS FOR THE OFFICIAL US CHESS HALL OF FAME DEDICATED IN MARCH THIS VALHALLA OF CHESS HISTORY INCLUDES TROPHIES CHESSBOARDS SCORE SHEETS AND OTHER MEMENTOS OF FORMER US CHAMPIONS DISPLAYED IN GLASS CASES PICTURES OF CHESS IMMORTALS PAUL MORPHY WILHELM STEINITZ JOSE CAPABLANCA AND BOBBY FISCHER ADORN THE WALLS AFTERNOONS AT THE CENTER MR MEHLER TEACHES CHESS TO DISADVANTAGED YOUTHS FROM WASHINGTON NEIGHBORHOODS EVENINGS AND WEEKENDS HOWEVER ARE DEVOTED TO TOURNAMENTS LECTURES CASUAL GAMES AND LESSONS FOR ADULTS KIDS PLAY CHESS AND TAKE LESSONS FOR FREE IT'S THE GROWNUPS WHO PAY FOR THE CENTER'S UPKEEP SO FAR SOME 120 MEMBERS PAY 200 IN ANNUAL DUES TO PARTICIPATE IN CENTER ACTIVITIES OUTSIDERS PAY MORE MODEST ONETIME FEES TO PARTICIPATE IN TOURNAMENTS AND LECTURES THE SOLE WASHINGTON CELEBRITY MEMBER IS OLIVER NORTH THE MAN WHOSE CAREER AS A MARINE COLONEL WAS CHECKMATED WHEN THE IRANCONTRA AFFAIR BLEW UP IN HIS FACE HERE HIS NAME IS INSCRIBED ON A WOODEN PLAQUE INSIDE THE DOORWAY HONORING MEMBERS WHO HAVE CONTRIBUTED AT LEAST AN ADDITIONAL 50 BEYOND THE REGULAR DUES BUT NO ONE AT THE CENTER HAS YET PLAYED A GAME WITH THIS QUONDAM GLOBAL STRATEGIST THAT THERE AREN'T MORE CELEBRITY MEMBERS IS IN KEEPING WITH MR MEHLER'S VISION MY INTEREST IN THE CENTER IS SIMPLE TO TEACH THE GAME TO KIDS EXPLAINS MR MEHLER WHO BEGAN USING CHESS AS AN INSTRUCTIONAL TOOL AS A HIGHSCHOOL TEACHER TWO DECADES AGO IN SACRAMENTO CALIF CHESS IS PERFECT FOR TEACHING ABOUT LIFE THERE'S NO RELYING ON LUCK NO REFEREE THE WINNER IS THE KID WHO THINKS THE HARDEST AND MAKES THE BEST MOVES MR MEHLER BELIEVES IN FACT THAT THE CHESS CENTER CAN PLAY A SMALL PART IN TURNING AROUND WASHINGTON'S DECAYING NEIGHBORHOODS CHESS FORCES PEOPLE TO TAKE RESPONSIBILITY FOR THEIR OWN ACTIONS HE SAYS CHESS PLAYERS MAKE BETTER CITIZENS AMONG THE CHESS PHENOMS MR MEHLER HAS TRAINED ARE 22YEAROLD GRANDMASTER ALEX SHERZER OF FALLSTON MD AND REIGNING NATIONAL HIGHSCHOOL CHAMPION GEOFFREY GELMAN 15 OF FALLS CHURCH VA DESPITE MR MEHLER'S BEST EFFORTS TO INSTILL THE VIRTUES OF MODESTY AND FAIR PLAY IN HIS YOUNG STUDENTS CHESS LIKE ALL COMPETITIVE ENDEAVORS CAN BREED A KIND OF PLAYGROUND ARROGANCE AS ADOLESCENT PLAYERS BECOME STRONGER THEY FREELY TAUNT WEAKER OPPONENTS AND MAKE MOVES THAT CRACKLE WITH INTENDED VIOLENCE CHESS VIRTUOSOS EMPLOY THEIR OWN SLAM DUNK FOR EXAMPLE THEY FIT A WEIGHTED PIECE BETWEEN THEIR INDEX AND MIDDLE FINGERS SWING IT UPWARD AND TOWARD THE OPPONENT AND FORCE IT DOWN ONTO THEIR CHOSEN SQUARE WITH A DELIBERATE THWACK EVEN IDLE CHITCHAT FOR COMPETITORS LIKE MR MEHLER ISN'T SO MUCH A CONVERSATION AS IT IS A BRISK GAME OF VERBAL CHESS AN ACTUAL DISCUSSION WITH MR MEHLER ABOUT PUBLICATIONS HE DISPLAYS FOR SALE AT THE CENTER DEMONSTRATES THE TECHNIQUE WHICH OF THESE BOOKS WOULD YOU RECOMMEND A VISITOR ASKS STRAIGHTFORWARDLY SEEKING AN OPEN UNCOMPLICATED GAME NONE OF THEM MR MEHLER PARRIES MEETING HIS FOE WITH A TRICKY POSITIONAL DEFENSE OK THEN WHICH IS THE BEST ONE OF THE LOT THE VISITOR IS STILL TRYING TO PLAY AN OPEN GAME THEY'RE ALL HARMFUL MR MEHLER HEMS HIS ADVERSARY IN WHICH ONE IS THE LEAST HARMFUL NOW THE VISITOR IS IN RETREAT TRYING TO MAINTAIN HIS COMPOSURE OH I GUESS THIS ONE MR MEHLER SAYS SLIPPING A SLENDER HARDBACK COMPILATION OF BOBBY FISCHER'S GAMES FROM THE DISPLAY CHECK SO THIS ONE'S OK TO READ THE VISITOR TRIES BOLTING TO SAFER GROUND NO IT'S MILDLY AMUSING MR MEHLER REPLIES BUT IT WON'T MAKE YOU A BETTER CHESSPLAYER YOU SHOULD JUST JOIN THE CENTER AND COMPETE CHECKMATE MR GRABOWSKI IS DIRECTOR OF MEDIA RELATIONS FOR THE WASHINGTONBASED AMERICAN COUNCIL OF LIFE INSURANCE 9307090007 930709 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA SAID ITS FOREIGN DEBT LAST YEAR ROSE 15 TO 6932 BILLION FROM A YEAR EARLIER BUT PRIVATE ECONOMISTS WERE OPTIMISTIC ABOUT EFFORTS TO COOL THE ECONOMY THEY SAID THAT WHILE THE FOREIGN DEBT IS EXPECTED TO GROW AND FOREIGNEXCHANGE RESERVES TO SHRINK AFTER DROPPING 10 LAST YEAR TO 194 BILLION CHINA HAS ROOM TO MANEUVER A SOFT LANDING FOR THE OVERHEATED ECONOMY STUNG BY PAST SLEDGEHAMMER APPROACHES BEIJING IS TRYING JUDICIOUSLY TO CURB SOARING INFLATION FUELED BY EASY CREDIT FOR PROPERTY SPECULATION AND BY VORACIOUS INDIVIDUAL CONSUMPTION OF IMPORTS THOUGH FOREIGN BORROWING ROSE DEBT PAYMENTS AS A PORTION OF EXPORT EARNINGS STOOD AT 734 LAST YEAR THIS WAS EASILY WITHIN THE 25 COMFORT LEVEL AND HEALTHY ENOUGH TO ALLOW MORE BORROWING FOR MUCHNEEDED PUBLICWORKS CONSTRUCTION THOUGH THE SOLID FOREIGNEXCHANGE RESERVES PROBABLY DROPPED FURTHER IN THE FIRST HALF CHINA'S FOREIGNEXCHANGE BANK ALSO HOLDS 20 BILLION IT CAN USE TO STAY WITHIN THE BORROWING COMFORT LEVEL FOR ITS FIRST CENSUS SINCE 1981 PERU ORDERED A MILITARYENFORCED CURFEW SUNDAY TO KEEP EVERYONE INDOORS IN ALL CITIES AS A POPULATION COUNT BEGINS THE ESTIMATE 22 MILLION IN LIMA THE CAPITAL ALL BUSINESSES WILL BE CLOSED AND TRAFFIC PROHIBITED BUT INTERNATIONAL FLIGHTS WILL OPERATE AS USUAL THEN IN THE FOLLOWING TWO WEEKS 350000 VOLUNTEERS WILL CANVASS SMALLER TOWNS AND REMOTE AREAS NEVER BEFORE COVERED IN A CENSUS THE GOVERNMENT WANTS ACCURATE DATA IN AREAS SUCH AS JOBS EDUCATION HEALTH HOUSING UTILITIES AND TRANSPORTATION TO HELP DIRECT IMPROVEMENTS KUWAIT WILL PRIVATIZE MANY OILRELATED SECTORS OIL MINISTER ALI ALBAGHLI TOLD THE ALANBA NEWSPAPER HE SAID SELLOFFS OF GASOLINE STATIONS AND OIL STORAGE OPERATIONS FOR EXAMPLE WOULD BE CONDUCTED THROUGH A NEW COMPANY TO BE SET UP AND INITIALLY RUN BY THE GOVERNMENT WITH SHARES TO BE SOLD LATER TO THE PUBLIC SINCE THE 1991 GULF WAR KUWAIT'S ONCE CONSIDERABLE FINANCIAL CLOUT HAS BEEN ROCKED BY SCANDALS AT LARGE STATE COMPANIES THE CARIBBEAN COMMUNITY VOTED TO CONSOLIDATE FOUR FINANCIALLY STRUGGLING AIRLINES GUYANA AIRWAYS BAHAMAS AIR AIR JAMAICA AND TRINIDAD'S BWIA THE FOUR GOVERNMENTS WILL OFFER TO THE PUBLIC SHARES IN A NEW COOPERATIVE FOR THE RESTRUCTURED CARRIERS AT ITS ANNUAL MEETING IN THE BAHAMAS THE 13NATION GROUP ALSO SAID IT MIGHT FORM AN AGENCY TO REGULATE AND TAX THE CRUISE INDUSTRY TO HELP PAY FOR ISLAND SERVICES IT MAY ADOPT A UNIFORM TAX ON PASSENGERS MAKING PORT CALLS AND A PORT USER FEE FOR SHIP SERVICES THE EUROPEAN COMMUNITY EARMARKED 105 MILLION TO HELP UKRAINE AND KAZAKHSTAN CONVERT STATE INDUSTRIES TO PRIVATE OWNERSHIP THE MONEY IS PART OF THE EC'S 156 BILLION PROGRAM TO PROVIDE TECHNICAL ASSISTANCE TO FORMER SOVIET STATES CONTRACTS WERE AWARDED TO WESTERN EUROPEAN BANKING AND CONSULTING GROUPS TO HELP SELECT UKRAINIAN CLOTHING PERSONALHEALTHCARE CANDY INDUSTRIALVEHICLE AND VEHICLEPARTS COMPANIES SUITABLE FOR PRIVATIZATION AND TO HELP SELL OFF KAZAKH ENERGY AND MINING ENTERPRISES TAIWAN'S SECURITIES AND EXCHANGE COMMISSION RELAXED RULES FOR FOREIGN SECURITIES COMPANIES TO SET UP BRANCHES IN THE COUNTRY THE SEC HOPES TO SPEED THE FLOW OF FOREIGN FUNDS INTO TAIPEI'S STOCK MARKET THE CHANGES CUT SIGNIFICANTLY THE CAPITAL REQUIREMENTS FOR A FOREIGN STOCK BROKERAGE FIRM TO OPEN A BRANCH OR ESTABLISH A SECURITIES DEALING BUSINESS SINCE A 1989 LIBERALIZATION ONLY TWO FOREIGN BRANCHES HAVE BEEN OPENED IN TAIWAN AND ONE OF THOSE HAS CLOSED A STRIKE AT A TEXTILE FACTORY IN THAILAND THAT AUTOMATED SOME OPERATIONS AND SHED WORKERS IS ATTRACTING NATIONWIDE SUPPORT FROM UNIONS THAT FEAR WIDESPREAD JOB LOSSES AS OTHER COMPANIES FOLLOW SUIT THE WEEKOLD STRIKE WAS CALLED TO PROTEST LAYOFFS OF 376 WORKERS AT A THAI DURABLE TEXTILE CO PLANT NEAR BANGKOK AS THAI FACTORIES UPGRADE THEIR TECHNOLOGY TO COMPETE WITH LOWERWAGE RIVALS ABROAD THOUSANDS OF THE COUNTRY'S ONE MILLION TEXTILE JOBS ARE LIKELY TO DISAPPEAR IN THE PAST TWO YEARS 5 OF BANGKOKAREA GARMENT AND TEXTILE WORKERS WERE LET GO LAIDOFF WORKERS WITH FEW TRANSFERRABLE SKILLS AND LITTLE ACCESS TO RETRAINING HAVE TROUBLE COMPETING FOR NEW MORE DEMANDING JOBS SEVEN IN 10 THAI WORKERS NEVER GOT BEYOND PRIMARY SCHOOL THAI UNIONS WHICH HAVE BEEN EFFECTIVE IN WINNING IMPROVEMENTS IN WORKING CONDITIONS DEMANDED THAT THAI DURABLE TEXTILE REINSTATE THE 376 WORKERS AND HUNDREDS OF UNION REPRESENTATIVES JOINED THE 3340 STRIKERS AT THE FACTORY LEADERS OF A DOZEN UNIONS THIS WEEKEND WILL DISCUSS ADDITIONAL ACTION HUNGARY DEVALUED ITS FORINT CURRENCY 3 AGAINST A BASKET COMPOSED OF THE US DOLLAR AND THE EUROPEAN CURRENCY UNIT THE MOVE FOLLOWED THREE DEVALUATIONS THIS YEAR THAT REDUCED THE FORINT'S VALUE A TOTAL OF 67 VENEZUELA'S GOVERNMENT INTRODUCED IN CONGRESS A PACKAGE OF 11 BILLS DESIGNED TO SPUR ECONOMIC GROWTH BY REVIVING FREEMARKET REFORMS THE PROPOSALS EXPECTED TO WIN APPROVAL INCLUDE A SALES TAX OF AS MUCH AS 15 AND A STREAMLINED PRIVATIZATION PROGRAM 9307090005 930709 LAW LEGAL BEAT EMPLOYERS FACE NEW LIABILITY TRUTH IN HIRING BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL EMPLOYERS LONG ACCUSTOMED TO SCRUTINIZING THE RESUMES OF JOBSEEKERS FOR EXAGGERATIONS OR LIES ARE FINDING THAT THEY TOO WILL BE EXPECTED TO LIVE UP TO THE PROMISES THEY MAKE IN RECRUITING SEVERAL RECENT LAWSUITS HAVE STRENGTHENED THE HANDS OF EMPLOYEES WHO WANT TO SUE EMPLOYERS FOR NOT DELIVERING THE KIND OF WORK EXPERIENCE THAT WAS DESCRIBED IN THE HIRING PROCESS AS A RESULT EMPLOYERS ARE BECOMING MORE CAREFUL ABOUT WHAT THEY PROMISE AND EMPLOYEES ARE DEMANDING THAT SPECIFIC SEVERANCE PROVISIONS BE ESTABLISHED IN CASE THE EXPECTED JOB EXPERIENCE DOESN'T PAN OUT RECRUITERS AND EMPLOYMENT LAWYERS SAY INTEREST IN SUCH TRUTHINHIRING CASES HAS INCREASED GREATLY SINCE LAST FALL WHEN THE FEDERAL APPEALS COURT IN NEW YORK ALLOWED A CASE TO GO FORWARD AGAINST A LAW FIRM THE COURT SAID AN ATTORNEY WHO WAS RECRUITED BY THE FIRM COULD SUE OVER ALLEGED BROKEN PROMISES ABOUT THE WORK SHE WOULD BE DOING THE DECISION DREW PARTICULAR ATTENTION BECAUSE NEW YORK HAS TOUGH RESTRICTIONS LIMITING THE TYPES OF CLAIMS THAT EMPLOYEES CAN BRING AGAINST EMPLOYERS THERE'S NO QUESTION THAT THIS IS AN EMERGING AREA OF EMPLOYER LIABILITY SAYS RICHARD J REIBSTEIN AN ATTORNEY IN THE NEW YORK OFFICE OF LAW FIRM MCDERMOTT WILL & EMERY LAWYERS SAY THESE CASES ALSO ARE BECOMING MORE PROMINENT AS TOUGH ECONOMIC TIMES CAUSE MORE PEOPLE TO MOVE FROM BUSINESS TO BUSINESS AND MAKE A COMPANY'S FUTURE HARDER TO PREDICT THE THEORY BEHIND THE CASES IS THAT EMPLOYEES GIVE UP OTHER OPPORTUNITIES IN ORDER TO TAKE A PARTICULAR JOB IF THEY DON'T GET THE OPPORTUNITIES THEY WERE PROMISED OR IF THE FIRM GOES OUT OF BUSINESS THE EMPLOYEES ARGUE THAT THEY ARE ENTITLED TO DAMAGES BECAUSE THEY COULD HAVE GONE TO WORK ELSEWHERE THE LEGAL PRINCIPLE IS THAT THE EMPLOYEES RELIED ON THE PROMISES OF A CERTAIN KIND OF WORK OR THAT THEY WERE FRAUDULENTLY INDUCED TO TAKE THE JOB SUCH CLAIMS CAN ALSO BE MADE BY CURRENT EMPLOYEES WHO ALLEGEDLY WERE MISLED ABOUT THEIR WORK PROSPECTS IN FEBRUARY THE VERMONT SUPREME COURT UPHELD 160000 OF A 205000 JURY AWARD TO AN ENGINEER WHO WAS LAID OFF BY A DEFENSE CONTRACTOR THE ENGINEER RICHARD PEARSON LOST HIS JOB WHEN WORK RELATED TO THE B2 BOMBER WAS SCALED BACK MR PEARSON ALLEGED THAT HIS EMPLOYER SIMMONDS PRECISION PRODUCTS A VERGENNES VT UNIT OF BF GOODRICH & CO KNEW THE PROJECT WOULD BE SCALED BACK WHEN IT HIRED HIM IN 1987 AND DIDN'T TELL HIM THE ENGINEER ALSO ACCUSED SIMMONDS OF LYING ABOUT HOW MUCH OF THE COMPANY'S WORK WAS DEFENSERELATED HE CLAIMS THE COMPANY SAID IT WAS 40 WHEN IT ACTUALLY WAS 70 MR PEARSON ONLY WORKED AT SIMMONDS FOR FOUR MONTHS AND HASN'T WORKED AS AN ENGINEER SINCE SAYS HIS ATTORNEY JAMES RUNCIE OF THE VERGENNES LAW FIRM OUIMETTE & RUNCIE IN ANOTHER CASE A NEW YORK STATE APPEALS COURT RULED THAT A SALESMAN CAN SUE A CLOTHING MANUFACTURER THAT HE SAID LIED ABOUT THE BUSINESS'S PROSPECTS TEN MONTHS AFTER HE JOINED THE SALESMAN WAS LEFT WITHOUT A JOB WHEN THE COMPANY SOLD OFF ITS INVENTORY IN THE CASE IN FEDERAL COURT AGAINST A LAW FIRM THE ATTORNEY WHO WAS RECRUITED CLAIMED THAT THE FIRM FAILED TO LIVE UP TO ITS ALLEGED PROMISE TO SET UP AN ENVIRONMENTAL DEPARTMENT NEAL BRICKMAN WHO REPRESENTED THE ATTORNEY SAYS THAT SINCE THE FEDERAL APPEALS COURT RULING IN OCTOBER HE'S BEEN FLOODED BY REQUESTS FROM OTHER PEOPLE WANTING TO SUE THEIR EMPLOYERS FOR FALSE PROMISES IT'S A WHOLE NEW AREA MR BRICKMAN SAYS THE CASES DON'T ALWAYS INVOLVE NEW HIRES IN A CASE IN MINNESOTA A TV COANCHOR WON 382000 IN DAMAGES RECENTLY AFFIRMED BY A STATE APPEALS COURT BECAUSE HER STATION DIDN'T DELIVER ON A PROMISED PROMOTIONAL CAMPAIGN SHE ARGUED THAT SHE DIDN'T TAKE UP AN OFFER TO MOVE TO A NETWORK AFFILIATE IN LOS ANGELES BECAUSE OF THE PROMISED CAMPAIGN THE TREND OF THE LAW IS UNSETTLING THESE CASES ARE PUTTING UP WALLS BETWEEN EMPLOYEES AND EMPLOYERS SAYS ROBERT BARROWS AN ATTORNEY AT MINNEAPOLIS LAW FIRM LEONARD STREET & DEINARD WHICH REPRESENTED THE TELEVISION STATION THESE KINDS OF CASES DISCOURAGE EMPLOYERS FROM EVER DISCUSSING WITH EMPLOYEES PLANS FOR THE FUTURE IT MAKES IT HARDER TO RECRUIT AND HARDER TO HAVE A WORKING RELATIONSHIP IN CONNECTICUT A FRAUD SUIT ALSO HAS BEEN BROUGHT BY A FORMER GENERAL SALES MANAGER OF AN AD OFFICE AT A HARTFORD TV STATION WHO WAS FIRED FOR MISMANAGING HIS SUBORDINATES THE SALES MANAGER SAYS HE WAS FIRED FOR BEING TOO AGGRESSIVE IN HIS MANAGEMENT STYLE A STYLE THAT HE SAYS WAS JUST THE TOUGH APPROACH THAT COMPANY OFFICIALS HAD TOLD HIM TO PURSUE AS A MANAGER TRUTHINHIRING SUITS TYPICALLY AREN'T BROUGHT BY TOP EXECUTIVES BECAUSE THEIR CONTRACTS CONTAIN STRICT PROVISIONS THAT ANTICIPATE MOST PROBLEMSSAYS JOSEPH E BACHELDER OF THE BACHELDER LAW OFFICES IN NEW YORK WHICH SPECIALIZE IN NEGOTIATING EXECUTIVE CONTRACTS MR BACHELDER ADDS THAT SENIOR EXECUTIVES USUALLY DO PRETTY THOROUGH INVESTIGATIONS BEFORE SIGNING ON BUT MR REIBSTEIN SAYS COMPANIES SHOULD TAKE STEPS TO PROTECT THEMSELVES WHEN RECRUITING BY NOT PROMISING TOO MUCH IN THE EMPLOYER'S GUIDE TO WORKPLACE TORTS WHICH MR REIBSTEIN COAUTHORED LAST YEAR HE SUGGESTS THAT RECRUITERS USE CAVEATS WHEN PREDICTING WHAT A NEW EMPLOYEE WILL DO USE WORDS SUCH AS POSSIBLE' POTENTIAL' AND MAYBE' WHEN DESCRIBING CAREER OPPORTUNITIES MR REIBSTEIN WRITES RONALD HERZOG AN ATTORNEY AT JACKSON & NASH THE LAW FIRM THAT WAS A DEFENDANT IN MR BRICKMAN'S CASE SAYS THE FIRM NOW DOCUMENTS EVERYTHING SO THERE'S NO GROUNDS FOR AN EMPLOYEE TO SUE FOR EXAMPLE MR HERZOG SAYS THE FIRM ISSUES NEW EMPLOYEES A MANUAL THAT THEY SIGN FOR AND WHICH OUTLINES THE TERMS OF THEIR EMPLOYMENT PEOPLE SUING BLOOD BANKS OVER HIVCONTAMINATED TRANSFUSIONS AREN'T BOUND BY STRICT LIMITS ON WHEN THE SUITS MUST BE FILED THE WISCONSIN SUPREME COURT RULED THE COURT SAID THE LAWSUITS AGAINST BLOOD BANKS ARE ORDINARY PERSONALINJURY CASES AND NOT MEDICALMALPRACTICE CASES WHICH MUST BE FILED WITHIN A SHORTER PERIOD OF TIME AFTER DISCOVERING THE INFECTION THE DECISION IS THE LATEST OF SEVERAL RULINGS AROUND THE COUNTRY REVERSING YEARS OF LOWERCOURT DECISIONS THAT DISMISSED SUCH CASES BECAUSE THEY WERE FILED TOO LONG AFTER THE INFECTION OCCURRED THE WISCONSIN CASE INVOLVED A MAN WHO IN 1983 WAS GIVEN A TRANSFUSION OF BLOOD INFECTED BY HIV THE VIRUS THAT CAUSES AIDS IN 1988 THE MAN WHO ISN'T IDENTIFIED BY NAME IN THE CASE TESTED POSITIVE FOR HIV INFECTION IN 1991 HE SUED THE AMERICAN NATIONAL RED CROSS WHOSE ST PAUL MINN CHAPTER HAD COLLECTED THE INFECTED BLOOD BECAUSE OF THE NATURE OF THE AIDS VIRUS WHICH CAN BE IN THE BODY FOR YEARS WITHOUT ANY SYMPTOMS MANY CASES CAUSED BY TAINTED BLOOD AREN'T DISCOVERED UNTIL LONG AFTER THE TRANSFUSION BY THEN THE TIME LIMIT THAT MANY STATES ALLOW FOR SUING HEALTHCARE PROFESSIONALS HAS EXPIRED BUT THE WISCONSIN COURT SAID THAT TIME LIMIT DOESN'T APPLY TO THE RED CROSS BECAUSE IT ISN'T A HEALTHCARE PROVIDER THE RED CROSS PLAYS NO ROLE IN THE DIAGNOSIS TREATMENT OR CARE OF PATIENTS THE COURT SAID WHO'S NEWS CARYL S BERNSTEIN FORMER EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL JOIN THE WASHINGTON LAW FIRM OF SHAW PITTMAN POTTS & TROWBRIDGE MRS BERNSTEIN WHO SERVED AS FANNIE MAE'S CHIEF LEGAL OFFICER FOR 12 YEARS WILL BE SENIOR COUNSEL TO THE LAW FIRM STARTING SEPT 1 EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9307090004 930709 USAIR DISCOUNTS TICKET PRICES 20 THROUGH DEC 15 OTHER CARRIERS FOLLOW BY JAMES S HIRSCH USAIR CUT FARES BUT UNLIKE WITH MOST AIRLINE DISCOUNTS TRAVELERS WILL HAVE PLENTY OF TIME TO BUY THEIR TICKETS THE AIRLINE SEEKING TO INCREASE REVENUE LOWERED ITS AVERAGE EXCURSION FARES BY 20 ON ITS TRANSCONTINENTAL ROUTES AND ON FLORIDA FLIGHTS TO AND FROM THE MIDWEST AND NORTHEAST ALL MAJOR CARRIERS INCLUDING AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES AND DELTA AIR LINES MATCHED THE DISCOUNT WHILE MOST SALES LAST ONLY A FEW WEEKS USAIR'S INITIATIVE APPLIES FOR TRAVEL THROUGH DEC 15 AND THERE IS NO EXPIRATION DATE ON WHEN TICKETS MUST BE BOUGHT A 14DAY ADVANCE PURCHASE AND SATURDAY NIGHT STAY ARE REQUIRED AND SEATS ARE LIMITED BUT INDUSTRY ANALYSTS BELIEVE STEEPER DISCOUNTS WILL COME THIS FALL USAIR'S NEW FARES ARE LESS GENEROUS THAN THE INDUSTRY'S RECENT 30OFF SUMMER SALE THE LAST DAY TO BUY TICKETS WAS TUESDAY AND THE NEW FARES ARE HIGHER THAN THOSE CHARGED LAST FALL UNDER USAIR'S NEW PRICE STRUCTURE THE ROUNDTRIP FARE FROM NEW YORK TO LOS ANGELES DROPPED 20 TO 458 FROM THE NONSALE FARE BUT THAT'S STILL 35 MORE EXPENSIVE THAN LAST FALL'S FARE USAIR A UNIT OF USAIR GROUP INC IN ARLINGTON VA DESCRIBES ITS NEW FARES AS DISCOUNTED BUT RATIONAL AND SAYS THEY'RE PART OF AN EFFORT TO BRING PRICE STABILITY AND MORE REVENUE TO THE CARRIER THE MOVE IS ALSO A CONTINUATION OF USAIR'S EFFORTS TO LOWER LEISURE FARES ON A MORE PERMANENT BASIS IN MAY USAIR CUT LEISURE FARES BY AN AVERAGE OF 28 IN NORTHEAST MARKETS LESS THAN 750 MILES APART BUT THE LATEST INITIATIVE ALSO POINTS UP PROBLEMS FOR USAIR AND FOR THE ENTIRE INDUSTRY DESPITE A CASCADE OF DISCOUNT COUPONS A SUMMER SALE AND OTHER PROMOTIONS MOST AIRLINES ARE STRUGGLING TO ATTRACT PENNYPINCHING VACATIONERS THIS WEEK BOTH AMERICAN AND UNITED THE NATION'S TWO LARGEST CARRIERS ANNOUNCED DISAPPOINTING JUNE TRAFFIC NUMBERS AS A RESULT FARE WARS MAY FLOURISH IN THE FALL THAT'S PARTICULARLY TRUE AS LONG AS STRUGGLING AIRLINES SUCH AS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC NEED TO RAISE CASH QUICKLY IN FACT SOME INDUSTRY OBSERVERS BELIEVE USAIR'S NEW FARES WILL BE WIPED OUT IN A CROSSFIRE OF LOWER PRICES I DON'T THINK THE FARES WILL STAND SAYS TOM PARSONS EDITOR OF BEST FARES A TRADE PUBLICATION BETWEEN NOW AND THE END OF AUGUST WE'LL SEE ALL KINDS OF FUNNY THINGS FROM THE AIRLINES USAIR'S MOVE IS ALSO SEEN AS AN EFFORT TO PROTECT ITS TURF THE AIRLINE IS ALREADY FIGHTING A CRIPPLING FARE WAR WITH UNITED IN CALIFORNIA WHERE BOTH AIRLINES HAVE BEEN ROUTED BY SOUTHWEST AIRLINES AND SEVERAL STARTUPS THE SAME THREAT MAY EMERGE IN THE NORTHEAST AND FLORIDA JUST YESTERDAY SOUTHWEST SAID IT WAS LOOKING TO EXPAND IN THE BALTIMORE AREA AND WAS LOOKING AT A SMALL AIRPORT NEAR THE SUBURBS NORTH OF NEW YORK CITY ALTHOUGH NO DECISIONS HAVE BEEN MADE SOUTHWEST CURRENTLY DOESN'T FLY FARTHER EAST THAN CLEVELAND USAIR'S MOVE COULD BE A PREEMPTIVE STRIKE AT NEW AIRLINES SAID CHRIS MILLER INDUSTRY ANALYST FOR USTRAVEL A TRAVEL AGENCY HE EXPECTS USAIR'S NEW FARES TO BE CASH POSITIVE FOR THE AIRLINE AS OPPOSED TO STEEPERBUTSHORTER SALES THAT BRING IN QUICK CASH BUT DRAIN REVENUE IN THE LONG RUN USAIR SAID ITS MOVE WAS UNRELATED TO COMPETITIVE PRESSURES IN THE NORTHEAST OR FLORIDA IT CALLED THE NEW FARES A FALL PROMOTION AND SAID THE CUTS START IN JULY BECAUSE CURRENT FARE LEVELS ARE HIGH AND MANY WOULDBE TRAVELERS WERE SIMPLY WAITING FOR A DISCOUNT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY USAIR SHARES WERE UNCHANGED AT 15375 9307090003 930709 HEALTH CARE CONFERENCE NOTEBOOK BY RON WINSLOW REAL MEN ARE LOUSY PATIENTS PARTICULARLY WHEN THEIR DOCTORS ARE ALSO MEN RESEARCHERS AT THE HEALTH INSTITUTE OF THE NEW ENGLAND MEDICAL CENTER BOSTON FOUND THAT DURING DOCTOR VISITS MEN ARE MUCH MORE PASSIVE THAN WOMEN AND MAY SUFFER POORER HEALTH AS A RESULT PATIENTS WHO ARE MORE EFFECTIVE IN COMMUNICATING WITH THEIR PHYSICIANS HAVE BETTER HEALTH OUTCOMES SAID SHERRIE KAPLAN WHO PRESENTED THE STUDY AT THE ANNUAL MEETING OF THE ASSOCIATION FOR HEALTH SERVICES RESEARCH LAST WEEK IN WASHINGTON THE RESEARCHERS ANALYZED AUDIO TAPES OF DOCTOR VISITS OF 296 PATIENTS INCLUDING 115 MEN WHO HAD DIABETES HIGH BLOOD PRESSURE ULCERS OR EARLYSTAGE BREAST CANCER MEN ASKED FEWER QUESTIONS GAVE LESS INFORMATION AND DISPLAYED LESS EMOTION THAN WOMEN IN A 15MINUTE OFFICE VISIT MEN TYPICALLY DIDN'T ASK A SINGLE QUESTION WHILE WOMEN ASKED SIX BUT MEN WITH FEMALE DOCTORS PROVIDED OVER TWICE AS MUCH INFORMATION AS THOSE SEEING MALE PHYSICIANS THEY ALSO REPORTED IN QUESTIONNAIRES HAVING FEWER FUNCTIONAL LIMITATIONS FROM THEIR ILLNESSES DR KAPLAN SUGGESTED THAT WOMEN MAY BE BETTER PATIENTS BECAUSE THEY HAVE MORE EXPERIENCE THROUGH ROUTINE GYNECOLOGICAL CHECKUPS AND TAKING THEIR CHILDREN TO THE DOCTOR BUT WOMEN DON'T ALWAYS FARE BETTER A SEPARATE STUDY BY DANA SAFRAN AND HER COLLEAGUES ALSO AT NEW ENGLAND MEDICAL CENTER FOUND DOCTORS WERE NEARLY THREE TIMES MORE LIKELY TO ADVISE WOMEN WITH CHRONIC DISEASES THAN MEN TO CURTAIL DAILY ACTIVITIES BOTH MEN AND WOMEN WHO FOLLOWED SUCH ADVICE SUBSEQUENTLY FARED WORSE IN TERMS OF HEALTH THAN PATIENTS WITH SIMILAR CONDITIONS WHO MAINTAINED NORMAL ROUTINES GETTING DOCTORS INVOLVED APPEARS VITAL TO HAVING THEM FOLLOW PRACTICE GUIDELINES GOVERNMENT AGENCIES AND HMOS ARE AMONG GROUPS DEVELOPING GUIDELINES IN AREAS FROM PRENATAL CARE TO HEART SURGERY INTENDED IN PART TO HELP DOCTORS IMPROVE THE QUALITY OF CARE MANY PHYSICIANS HOWEVER HAVE RESISTED GUIDELINES AS AN INTRUSION IN THEIR PRACTICE NATIONAL RECOMMENDATIONS FOR TREATING CHILDREN WITH ASTHMA CALL FOR AGGRESSIVE USE OF INHALED STEROIDS BUT RICHARD LANMAN QUALITYIMPROVEMENT CHIEF AT A KAISER PERMANENTE CLINIC IN MILPITAS CALIF FOUND THAT SIX OF THE CLINIC'S NINE PEDIATRICIANS DIDN'T PRESCRIBE THE MEDICINE REGULARLY DR LANMAN SAID AT LAST WEEK'S CONFERENCE THAT THE PEDIATRICIANS EVALUATED THEIR TREATMENT STRATEGIES AND THEN TAILORED THE NATIONAL GUIDELINES TO THEIR OWN PRACTICE FOR INSTANCE INCLUDING A MEDICINE WITH WHICH SOME OF THE DOCTORS HAD FOUND PARTICULAR SUCCESS ONE RESULT HOSPITAL ADMISSIONS FOR ASTHMA PATIENTS FROM THE CLINIC FELL 32 IN 1992 WHILE ADMISSIONS FOR OTHER AREA PEDIATRICIANS WERE FLAT PHYSICIANS DON'T NECESSARILY ADOPT GUIDELINES UNTIL THEY ARE CONVINCED THAT WHAT THEY'RE DOING NEEDS CHANGING AND UNTIL THEY ARE INVITED INTO THE PROCESS DR LANMAN SAID A COLLABORATION AMONG RESEARCHERS MEDICAL SOCIETIES AND FEDERAL QUALITY AGENCIES KNOWN AS PEERREVIEW ORGANIZATIONS IS AIMED AT MEASURING AND INCREASING PHYSICIANS' CONFORMANCE WITH GUIDELINES ONE EARLY FINDING JUST 15 OF DIABETIC MEDICARE PATIENTS IN ALABAMA IOWA AND MARYLAND WERE GIVEN A RECOMMENDED ANNUAL TEST KNOWN AS HEMOGLOBIN A1C R HEATHER PALMER THE PROJECT'S PRINICIPAL INVESTIGATOR AT THE HARVARD SCHOOL OF PUBLIC HEALTH IN BOSTON SAID THE RESULTS REFLECT AMONG OTHER THINGS THE LACK OF A SYSTEM TO INFORM DOCTORS IN SMALL PRACTICES ABOUT GUIDELINES AND THE NEED TO INVOLVE PHYSICIANS IN THEIR DEVELOPMENT AND EVALUATION RELATIONSHIPS BETWEEN FAMILY DOCTORS AND SPECIALISTS SUFFER UNDER SOME MANAGEDCARE PLANS A STUDY SUGGESTS IN MOST HEALTHMAINTENANCE ORGANIZATIONS PRIMARYCARE PHYSICIANS SERVE AS GATEKEEPERS WHO REGULATE THEIR PATIENTS' ACCESS TO SPECIALISTS HMOS SAY THAT BOTH HELPS TO CONTROL COSTS AND IMPROVES THE QUALITY AND MANAGEMENT OF CARE SUCH A STRATEGY IS LIKELY TO BE PART OF PRESIDENT CLINTON'S HEALTHCARE PLAN BUT A SURVEY OF 39 DOCTORS WITH BOTH HMO AND FEEFORSERVICE PATIENTS FOUND THAT THE PHYSICIANS WERE LESS LIKELY TO DISCUSS PATIENT CARE WITH SPECIALISTS IN HMOS OR TO GET WRITTEN REPORTS BACK ON CARE PROVIDED THE DOCTORS SAID THEY WERE MORE LIKELY TO REFER AN HMO PATIENT TO A SPECIALIST THEY DIDN'T KNOW MOST DOCTORS IN THE SURVEY BELONG TO SEVERAL HMOS AND HAVE ONLY MINOR STAKES IN ANY ONE PLAN THE GATEKEEPER MODEL MAY BE COMPROMISED IN SUCH A FRAGMENTED MARKET SAID ZC ROULIDIS OF GEORGETOWN UNIVERSITY MEDICAL CENTER WASHINGTON LEAD AUTHOR OF THE STUDY THE SURVEY WAS SMALL AND MAY REFLECT DISRUPTIONS TO BE EXPECTED IN PHYSICIAN REFERRALS SOON AFTER MANAGEDCARE ORGANIZATIONS SET UP DOCTOR NETWORKS IT'S A STAGE THAT MOST MARKETS GO THROUGH SAID SHEILA LEATHERMAN VICE PRESIDENT UNITED HEALTHCARE A MANAGEDCARE COMPANY BASED IN MINNEAPOLIS NEVERTHELESS THE REPORT PAINTS A DISTURBING PICTURE OF THAT ASPECT OF MANAGED CARE SAID FITZHUGH MULLAN DIRECTOR OF HEALTH PROFESSIONS FOR THE HEALTH RESOURCES AND SERVICES ADMINISTRATION A FEDERAL AGENCY THAT OVERSEES DEVELOPMENT OF PRIMARYCARE SERVICES SPECIALIST PHYSICIANS DON'T ENJOY HANDLING PRIMARYCARE PROBLEMS FOR PATIENTS SAID ECONOMIST ANITA J CHAWLA OF THE AMERICAN MEDICAL ASSOCIATION THE REPORT BODES ILL FOR THOSE WHO HOPE RETRAINING SPECIALISTS CAN EASE A SHORTAGE OF GENERALIST DOCTORS VALUE HEALTH SCIENCES SANTA MONICA CALIF SAID 20 OF HYSTERECTOMIES 88 OF BACK OPERATIONS AND 23 OF CORONARY ANGIOGRAMS ORDERED BY DOCTORS ARE INAPPROPRIATE THE FINDINGS WERE BASED ON AN ANALYSIS OF 250000 CASES IN 1991 AND 1992 9307090002 930709 REMYCOINTREAU NET DECREASED BY 25 DURING FISCAL 1993 SPECIAL TO THE WALL STREET JOURNAL FRENCH CHAMPAGNE AND SPIRITS GROUP REMYCOINTREAU SA REPORTED THAT ITS GROUP NET INCOME RETREATED 25 TO 202 MILLION FRANCS 35 MILLION IN THE YEAR ENDED MARCH 31 THE COMPANY DIDN'T DISCLOSE WHAT DIVIDEND IT WOULD PAY IN THE PREVIOUS FISCAL YEAR REMYCONTREAU'S NET WAS 271 MILLION FRANCS AND IT PAID A DIVIDEND OF 442 FRANCS A SHARE DESPITE AN INCREASE IN SPECIAL CHARGES TO 31 MILLION FRANCS FROM 14 MILLION FRANCS THE PREVIOUS YEAR REMYCOINTREAU SAW ITS FINANCING COSTS IMPROVE TO 577 MILLION FRANCS FROM 605 MILLION FRANCS REMYCOINTREAU NOTED THAT ITS REVENUE WAS PARTICULARLY PRESSURED BY ADVERSE SWINGS IN FOREIGN EXCHANGE RATES AND THE NONRENEWAL OF CERTAIN CONTRACTS FOR ITS PRODUCTS MOST NOTABLY IN DUTY FREE SHOPS REVENUE DECLINED 99 TO 583 BILLION FRANCS FROM 647 BILLION FRANCS ITS OPERATING PROFIT MEANWHILE WAS DENTED NOT ONLY BY THE EFFECTS OF CURRENCY RATES BUT BY THE CRUMBLING PROFITABILITY OF ITS CHAMPAGNE ACTIVITIES NEVERTHELESS THE GROUP SAID THERE WAS NO EROSION IN ITS OPERATING MARGIN DURING THE FINANCIAL YEAR REMYCOINTREAU'S BRANDS INCLUDE THE LIQUEUR COINTREAU AND REMY MARTIN A LEADING COGNAC BRAND THE GROUP NOTED IMPORTANT CONTRASTS IN ITS TWO HALVES THE FIRST HALF WHICH ENDED SEPT 30 WAS PENALIZED BY THE DISRUPTIVE EFFECTS OF A CHANGE IN THE DISTRIBUTION OF ITS COINTREAU BRAND PRODUCTS THE SECOND HALF HOWEVER WAS MARKED BY GROWTH IN ITS COGNAC SALES IN CHINESE MARKETS AS WELL AS THE POSITIVE EFFECTS OF THE INTEGRATION OF ITS COINTREAU PRODUCTS REMYCOINTREAU NOTED A POSITIVE SECOND HALF DESPITE A VERY DIFFICULT ECONOMIC AND MONETARY ENVIRONMENT IN EUROPE 9307090001 930709 MARKETING & MEDIA DOW JONES EARNINGS DROPPED IN 2ND PERIOD AS ADVERTISING FELL NEW YORK DOW JONES & CO SAID NET INCOME FELL 53 IN THE SECOND QUARTER PRIMARILY BECAUSE OF A DECLINE IN ADVERTISING AT THE WALL STREET JOURNAL ADVERTISING LINAGE WAS SOFT LARGELY DUE TO GENERAL ECONOMIC UNCERTAINTY SAID PETER R KANN CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUSINESSES ARE STILL CAUTIOUS ABOUT A RECOVERY AND THAT AFFECTS THEIR SPENDING NET DECLINED TO 398 MILLION OR 40 CENTS A SHARE FROM 42 MILLION OR 41 CENTS A SHARE IN THE YEAREARLIER QUARTER CONSOLIDATED OPERATING INCOME DECREASED 61 TO 816 MILLION REVENUE ROSE 42 TO 487 MILLION OPERATING INCOME AT DOW JONES'S INFORMATIONSERVICES SEGMENT WAS 391 MILLION UP 44 WHILE REVENUE INCREASED 86 TO 2143 MILLION THE BUSINESS PUBLICATIONS SEGMENT'S OPERATING INCOME FELL 12 TO 379 MILLION WITH REVENUE ABOUT EVEN AT 2096 MILLION ADVERTISING LINAGE AT THE WALL STREET JOURNAL FELL 73 IN THE SECOND QUARTER OPERATING INCOME AT OTTAWAY NEWSPAPERS INC THE COMMUNITY NEWSPAPER SUBSIDIARY DECLINED 11 TO 91 MILLION WHILE REVENUE ROSE 46 TO 631 MILLION ADVERTISING LINAGE AT OTTAWAY'S 21 DAILY NEWSPAPERS WAS UP 1 IN THE SECOND QUARTER FOR DOW JONES OPERATING INCOME IN THE FIRST HALF WAS DOWN 16 TO 1469 MILLION ON A 52 REVENUE GAIN TO 9505 MILLION IN THE FIRST HALF NET ROSE 22 TO 708 MILLION OR 71 CENTS A SHARE FROM 582 MILLION OR 57 CENTS A SHARE A YEAR EARLIER EARNINGS FOR THE 1992 FIRST HALF WERE RESTATED TO REFLECT A ONETIME NET CHARGE OF 108 MILLION OR 11 CENTS A SHARE FROM CHANGES IN ACCOUNTING FOR INCOME TAXES AND EMPLOYEES' POSTRETIREMENT BENEFITS EXCLUDING THE CHARGE FIRSTHALF EARNINGS INCREASED 26 9307080161 930708 COMMODITIES PETROLEUM FUTURES SLIP AMID GROWING CONCERNS IRAQ MAY BE CLEARED FOR ONETIME SALE OF OIL BY CAROLYN PHILLIPS STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM FUTURES PRICES MOVED LOWER IN LONDON AND NEW YORK TRADING YESTERDAY ON THE GROWING SENTIMENT THAT IRAQ WILL BE ALLOWED AN EMERGENCY ONETIME SALE OF CRUDE OIL THE MARKET IS TELLING US THAT IRAQI OIL SALES ARE GETTING CLOSER ONE MARKET PARTICIPANT TOLD THE DOW JONES INTERNATIONAL PETROLEUM REPORT THERE SEEMS TO BE SOME SORT OF CONSENSUS BUILDING OFFICIALS FOR THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES LENT SOME SUPPORT TO PRICES WITH AN ANNOUNCEMENT YESTERDAY MORNING THAT THEY WILL MEET TO REEVALUATE OUTPUT IF IRAQ GETS CLEARANCE TO SELL OIL THE IRAQI SITUATION LOPPED 27 CENTS OFF AUGUST CRUDE IN NEW YORK MERCANTILE EXCHANGE TRADING WHERE THE CONTRACT SETTLED AT 1802 A BARREL PETROLEUM PRICES HAVE YOYOED IN RECENT TRADING SESSIONS SLIDING ON REPORTS THAT IRAQ MAY BE CLOSE TO SELLING OIL AGAIN AND RISING WITH NEWS OF ADDITIONAL HURDLES STANDING IN THE WAY OF ANY SUCH SALES IRAQ HAS BEEN BLOCKED FROM SELLING OIL BY UNITED NATIONS SANCTIONS IMPOSED AFTER IRAQ INVADED KUWAIT IN AUGUST 1990 LEADING TO THE PERSIAN GULF WAR IN EARLY 1991 BUT YESTERDAY IRAQI OFFICIALS MET WITH THE UN TO DISCUSS THE POSSIBILITY OF A LONGPROPOSED ONETIME 16 BILLION SALE OF IRAQI OIL FOR HUMANITARIAN REASONS NO AGREEMENT WAS REACHED BUT ONE IRAQI REPRESENTATIVE IN ATTENDANCE TOLD REPORTERS THAT DISCUSSIONS WENT WITHOUT DIFFICULTY THE MEETING ADJOURNED AFTER TWO HOURS AND TALKS ARE EXPECTED TO CONTINUE TODAY TRADERS WEREN'T THE ONLY GROUP THAT SAW SOME LIKELIHOOD OF IRAQ'S RETURNING TO WORLD OIL MARKETS OPEC OFFICIALS MADE STATEMENTS APPARENTLY DESIGNED TO TEMPER THE OIL PRICE SLIDE MOST ASSOCIATE WITH IRAQ'S PUMPING ADDITIONAL CRUDE INTO AN ALREADY FULL MARKET SEVERAL OPEC MINISTERS HAVE CONFERRED WITH ONE ANOTHER AND AGREE THAT THE GROUP WILL CALL AN EMERGENCY MEETING IF THE UNIRAQ TALKS RESULT IN OIL EXPORTS BY IRAQ WHILE THE TALKS IN NEW YORK SEEMED TO SHOW PROGRESS IRAQ ISSUED A STRONG STATEMENT OUT OF BAGHDAD THAT IT WON'T ACCEPT UN TERMS FOR LONGTERM MONITORING OF ITS MISSILE SITES WITHOUT GETTING SOMETHING IN RETURN IT WAS UNCLEAR WHETHER THE IRAQI STATEMENT REFERRED TO OIL SALES AND IN FACT A UN DECISION TO ALLOW A ONETIME OIL SALE IS QUITE SEPARATE FROM A UN DECISION TO LIFT SANCTIONS AGAINST IRAQ ALTOGETHER PLAYERS ALSO WERE GENERALLY PESSIMISTIC DURING THE TRADING SESSION ABOUT WHAT THEY BELIEVED THE WEEK'S STATISTICAL REPORT FROM THE AMERICAN PETROLEUM INSTITUTE WOULD SHOW MOST EXPECTED TO SEE CONTINUED WEAKNESS IN DEMAND FOR CRUDE AND PETROLEUM PRODUCTS EVIDENCED BY INCREASES IN US INVENTORIES AS IT HAPPENED THEY WERE WRONG AT LEAST ABOUT CRUDE AND GASOLINE STOCKS THE API NUMBERS RELEASED A DAY LATE BECAUSE OF THE JULY 4TH HOLIDAY SHOWED RELATIVELY LARGE DECLINES IN US GASOLINE AND CRUDE STOCKS HOWEVER THE SUPPLY OF DISTILLATES GREW BY 266 MILLION BARRELS FOR THE WEEK AHEAD OF THE REPORT TRADERS SOLD HEATING OIL PUSHING THE AUGUST CONTRACT DOWN 063 CENT TO 5063 CENTS A GALLON AUGUST GASOLINE FELL NEARLY A PENNY 090 CENT TO 5265 CENTS A GALLON NATURAL GAS FUTURES FOR AUGUST ROSE 14 CENT BUOYED BY HIGH TEMPERATURES AND INCREASED AIRCONDITIONING USE TO SETTLE AT 2158 PER MILLION BRITISH THERMAL UNITS IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD AND MOST OTHER PRECIOUS METALS MARKETS CONTINUED TO RALLY ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY SHOT UP 470 TO SETTLE AT 39780 IN ACTIVE TRADING THE MOVE FOLLOWS A 640 GAIN ON TUESDAY WITH THAT SURGE COMING AMID A RALLY IN A WIDE VARIETY OF COMMODITY PRICES LED BY GRAINS YESTERDAY'S JUMP IN GOLD PRICES HAD LITTLE TO DO WITH OTHER COMMODITY PRICE MOVES WHICH WERE RELATIVELY MUTED AND MUCH TO DO WITH PERCEPTIONS OF A STRONG SUPPLY AND DEMAND IMBALANCE IN THE GOLD MARKET TRADERS SAID THE MARKET SAW GOOD PHYSICAL DEMAND FROM THE MIDDLE EAST THE FAR EAST AND LOCAL FUNDS SAID GERARD POLLINO A SENIOR TRADER WITH MILLENIUM FUTURES THE MARKET IS SEEING FOLLOWTHROUGH BUYING ON ANY KIND OF DIPS IN PRICES HE SAID PREDICTING THAT GOLD FOR AUGUST DELIVERY WILL SETTLE ABOVE 400 BY WEEK'S END MR POLLINO AND OTHER TRADERS CAUTIONED THAT PRODUCERS CONSISTENTLY ARE SELLING GOLD INVENTORY AT THESE HIGHER PRICE LEVELS SO FAR HOWEVER THE FUTURES MARKET APPEARS TO BE MORE THAN ABLE TO ABSORB SUCH SALES AND MOVE HIGHER SILVER FUTURES SUPPORTED BY HEAVY SPECULATIVE BUYING BY MIDDLE EAST INTERESTS CONTINUED TO MOVE HIGHER TRADERS SAID ON THE COMEX SILVER FOR DECEMBER DELIVERY EDGED UP 04 CENT TO 5183 AN OUNCE WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH OBSERVED ONE OF THE MORE INTERESTING THINGS ABOUT THE SILVER MARKET IS THAT WE'RE SEEING A RETURN OF THE SAME MIDDLE EAST SPECULATORS LAST ACTIVE DURING THE SILVER RALLY OF THE LATE 1970S AND EARLY 1980S ON TUESDAY SILVER SURGED 237 CENTS AN OUNCE IN OTHER PRECIOUS METALS ACTIVITY PLATINUM FOR OCTOBER DELIVERY SETTLED 270 HIGHER AT 41180 ON THE NEW YORK MERCANTILE EXCHANGE PALLADIUM FOR SEPTEMBER DELIVERY DECLINED 40 CENTS TO 13800 ON THE NEW YORK MERC COFFEE FUTURES PRICES FELL BACK ON PROFITTAKING AFTER A STRONG 695 CENTSAPOUND RALLY TUESDAY TRADERS SAID ON THE COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR SEPTEMBER DELIVERY SLIPPED 190 CENTS TO 6975 CENTS A POUND OVER THE WEEKEND PRODUCERS AGREED TO A PLANAIMED AT BOOSTING PRICESIN WHICH THEY CONSENTED TO WITHHOLD 20 OF THEIR PROJECTED EXPORTS FROM THE MARKET FOR A YEAR BEGINNING OCT 1 IN THE SHORT TERM YOU COULD SEE THE MARKET CONTINUE TO MOVE HIGHER ON TALK OF THE EXPORT RETENTION PLAN AND ON EXPECTATIONS THAT STOCKS IN THE CONSUMER NATIONS WILL TIGHTEN UP AS A RESULT SAID JUDY GANES COMMODITY ANALYST WITH MERRILL LYNCH BUT ON THE OTHER HAND EVERYTIME THIS MARKET HAS EXPERIENCED A SLIGHT BOUNCE WE'VE SEEN MASSIVE QUANTITIES OF PRODUCER SELLING THE MERRILL ANALYST ALSO SAID THAT THERE WERE AMPLE REASONS TO DOUBT THAT THE NEW ACCORD SIGNED IN EL SALVADOR WILL HOLD THE DETAILS OF THE PLAN ARE REALLY SKETCHY WHAT ARE THE VERFICATION CONTROLS GOING TO BE AND IF PRICES RALLY TOO QUICKLY ANY INCENTIVE TO GO THROUGH WITH PLAN IS LOST 9307080160 930708 BUSINESS BRIEF LOMAS FINANCIAL CORP MORTGAGE LENDER REACHES AGREEMENT ON FTC CHARGES LOMAS MORTGAGE USA A MAJOR MORTGAGE LENDER AGREED TO SETTLE FEDERAL TRADE COMMISSION CHARGES THAT IT DECEIVED CONSUMERS OVER THE TERMS OF VARIOUS MORTGAGE INTEREST RATES THE COMMISSION ACCUSED THE COMPANY OF MISREPRESENTING ITS LOCKIN RATES ON CERTAIN TYPES OF LOANS AND IN SOME CASES FAILING TO FOLLOW THROUGH ON SUCH LOCKIN AGREEMENTS A LOCKIN IS A LENDER'S PROMISE TO A MORTGAGE LOAN APPLICANT TO HOLD A CERTAIN INTEREST RATE FOR A SPECIFIED PERIOD OF TIME UNDER THE PROPOSED SETTLEMENT THE COMPANY MUST PAY 300000 TO THE FTC THAT MONEY WILL BE USED TO PROVIDE REFUNDS OF UP TO 1000 EACH TO INJURED LOMAS CUSTOMERS LOMAS ALSO AGREED NOT TO MISREPRESENT LOCKIN AGREEMENTS IN THE FUTURE A CONSENT AGREEMENT IS FOR SETTLEMENT PURPOSES ONLY AND DOESN'T CONSTITUTE THE ADMISSION OF A LAW VIOLATION LOMAS MORTGAGE USA IS A UNIT OF LOMAS FINANCIAL CORP DALLAS 9307080158 930708 COSTCO SALES ROSE 14 IN PERIOD KIRKLAND WASH COSTCO WHOLESALE CORP POSTED A 14 GAIN IN SALES FOR THE FOURWEEK PERIOD ENDED JULY 4 TO 598 MILLION FROM 526 MILLION SALES AT STORES OPEN MORE THAN A YEAR ROSE 3 9307080157 930708 GEOTEK RAISES ABOUT 22 MILLION MONTVALE NJ GEOTEK INDUSTRIES INC SAID IT RAISED APPROXIMATELY 22 MILLION FROM THE EXERCISE OF WARRANTS WHICH INCREASED ITS OUTSTANDING SHARES TO 329 MILLION FROM 24 MILLION THE WIRELESS TELECOMMUNICATIONS COMPANY SAID IT WILL USE PROCEEDS TO FINANCE THE RECENT ACQUISITION OF NATIONAL BAND THREE A UK MOBILE RADIO COMMUNICATIONS FIRM 9307080156 930708 CREDIT MARKETS TREASURY NOTES BONDS FINISH LITTLE CHANGED AMID LACK OF SIGNIFICANT DATA TO STEER TRADING BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ASIDE FROM MINOR SWINGS US TREASURY NOTES AND BONDS WERE CONFINED TO NARROW RANGES YESTERDAY AND ENDED LITTLE CHANGED THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 105 23/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 667 FROM 668 ON TUESDAY IT WAS A FAIRLY QUIET DAY NOTHING FOR THE MARKET TO CHEW ON SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO NO NEWS EMERGED TO DRIVE THE MARKET SIGNIFICANTLY IN EITHER DIRECTION YESTERDAY WITH TRADERS HAVING ONLY COMMODITY AND PRECIOUS METALS PRICES FROM WHICH TO TAKE THEIR CUES UNTIL INFLATION FIGURES FOR JUNE ARE RELEASED NEXT WEEK THERE ARE NO MAJOR ECONOMIC REPORTS OF GREAT IMPORTANCE AND ASIDE FROM TREASURY BILLS THERE ARE NO AUCTIONS UNTIL JULY 27 IT'S A MARKET THAT DOESN'T HAVE A STRONG DIRECTION BECAUSE OF A LACK OF SIGNPOSTS MR LEUZZI SAID COMMODITY PRICES AS MEASURED BY THE COMMODITY RESEARCH BUREAU INDEX SETTLED DOWN YESTERDAY AFTER JUMPING MORE THAN FIVE POINTS ON TUESDAY YESTERDAY THE CRB INDEX FELL 007 TO 21723 BOND INVESTORS FEAR RISING COMMODITY PRICES BECAUSE THEY ARE OFTEN A SIGN OF RISING INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN FOR THE MOMENT AT LEAST BOND INVESTORS SEEM TO BE SHRUGGING OFF ANY SIGNS OF HIGHER INFLATION AFTER WEATHERING TWO INFLATION SCARES ALREADY THIS YEAR INVESTORS ARE SLOWER TO REACT TO ANY SIGNS OF INFLATION THAN EARLIER THIS YEAR SAID JIM SOMERS OF SOMERS ASSET MANAGEMENT INVESTORS SAW TUESDAY'S JUMP IN COMMODITIES PRICES AS A TRANSIENT THING HE SAID ISSUERS OF CORPORATE DEBT TOOK ADVANTAGE OF THE APPARENT NONCHALANCE OF INVESTORS TOWARD INFLATION THESE DAYS AND SOLD A NUMBER OF 30YEAR BONDS INVESTORS WOULD BE LOATH TO BUY SUCH LONGTERM ISSUES IF THEY WERE TRULY WORRIED ABOUT INFLATION SINCE SUCH LONGTERM MATURITIES ARE THE MOST SENSITIVE TO INFLATIONARY PRESSURES ONE OF THE 30YEAR BOND ISSUES WAS A GOOD BAROMETER OF INVESTOR DEMAND YESTERDAY FOR LONGERTERM ISSUES BURLINGTON NORTHERN INC A RAILROAD COMPANY SOLD 150 MILLION OF BONDS AT A YIELD SPREAD OF JUST 0945 PERCENTAGE POINT OVER THE 30YEAR TREASURY BOND THE BONDS WILL BE NONCALLABLE FOR 10 YEARS AND HAVE RATINGS THAT PUT THEM NEAR THE BOTTOM OF THE INVESTMENTGRADE RATING CATEGORY STANDARD & POOR'S CORP RATED THE ISSUE TRIPLEB WHILE MOODY'S INVESTORS SERVICE INC RATED IT BAA1 THE LOWEST INVESTMENTGRADE RATINGS FROM EACH AGENCY ARE BAA3 AND TRIPLEBMINUS RESPECTIVELY MEANWHILE MOST US TREASURY SECURITIES RECOVERED FROM EARLY JITTERS TO FINISH LITTLE CHANGED AMID THE EASING OF COMMODITY PRICES THE MARKET STARTED OUT WITH A LITTLE BIT WEAKER TONE FIRMED UP THROUGH MIDMORNING AND JUST SETTLED BACK TO WHERE WE WERE AT THE OPEN SAID VAN SILER A MANAGING PARTNER AT RJ WALLS & CO PRINCETON NJ WHILE INVESTORS IN THE TREASURY MARKET ARE NOT YET PANICKING ABOUT INFLATION THEY ARE NOT READY TO LOAD UP ON MORE BONDS EITHER AFTER A RELATIVELY MUTED RESPONSE TO LAST FRIDAY'S WEAKERTHANEXPECTED JUNE EMPLOYMENT REPORT THE RALLY IN THE TREASURY MARKET HAS RUN OUT OF STEAM THIS WEEK PLAYERS NOTE PART OF THE PROBLEM IS THAT WITHOUT A CONTINUAL STREAM OF BULLISH NEWS TRADERS ARE RELUCTANT TO BUY AGGRESSIVELY AT WHAT COULD STILL PROVE TO BE THE UPPER END OF A BROAD TRADING RANGE SASKATCHEWAN YESTERDAY BECAME THE LATEST CANADIAN PROVINCE TO FIND STRONG DEMAND FOR ITS BONDS DESPITE WELLPUBLICIZED BUDGET PROBLEMS THE PROVINCE WAS ABLE TO INCREASE AN ORIGINALLY PLANNED 400 MILLION TWOPART YANKEE DEAL TO 500 MILLION THE ISSUE WAS SOLD AT WHAT WAS DEEMED A RELATIVELY ATTRACTIVE COST TO THE ISSUER OR YIELD MARGIN IN COMPARISON WITH US TREASURYS A YANKEE BOND IS A DOLLARDENOMINATED ISSUE SOLD IN THE US BY A FOREIGN ENTITY IN ALL SOME 17 BILLION IN NEW BONDS WERE PRICED YESTERDAY AND THE 30YEAR MATURITY PROVED POPULAR THREE ISSUERS INCLUDING A UTILITY A RAILROAD AND AN INSURANCE COMPANY TAPPED THE LONG END ACTIVITY IN THE INVESTMENTGRADE SECONDARY MARKET WAS THIN AND PRICES ENDED MOSTLY FLAT TRADING OF SEASONED HIGHYIELD BONDS ALSO WAS EXTREMELY LIGHT WITH LITTLE PRICE MOVEMENT TRADERS SAID MANY DEALERS REMAINED AWAY FROM THEIR DESKS IN THIS HOLIDAYSHORTENED WORK WEEK BESIDES THE RAILROAD COMPANY BURLINGTON NORTHERN ISSUERS OF 30YEAR BONDS INCLUDED HOUSTON LIGHTING & POWER A UNIT OF HOUSTON INDUSTRIES INC WHICH PRICED 200 MILLION OF 30YEAR FIRST MORTGAGE BONDS AT 99522 TO YIELD 754 OR ABOUT 087 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND THE BONDS WERE PRICED BY A GROUP OF UNDERWRITERS LED BY FIRST BOSTON CORP NONCALLABLE FOR 10 YEARS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P INSURER GEICO CORP PRICED 150 MILLION OF 30YEAR DEBENTURES AT 99639 TO YIELD 738 OR A SPREAD OF 070 PERCENTAGE POINT ABOVE THE TREASURY'S 30YEAR BOND THE NONCALLABLE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEA BY S&P AND WAS BROUGHT THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE FIRST PART OF THE SASKATCHEWAN ISSUE CONSISTING OF 200 MILLION OF 10YEAR NOTES WAS PRICED AT 99833 TO YIELD 6648 THE SECOND PART CONSISTING OF 300 MILLION OF 20YEAR DEBENTURES WAS PRICED AT 99102 TO YIELD 7462 THE NONCALLABLE ISSUES ARE RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P AND SOLD THROUGH A GROUP OF UNDERWRITERS LED BY SALOMON BROTHERS INC BOTH CLASSES RECEIVED FAVORABLE RECEPTION SAID BILL JONES ASSOCIATE DEPUTY ADMINISTRATOR FOR SASKATCHEWAN'S TREASURY AND DEBT MANAGEMENT DEPARTMENT THE BONDS WERE PRICED AT EVEN TIGHTER YIELD SPREADS OVER COMPARABLE US TREASURY BONDS THAN HAD BEEN EXPECTED HE SAID MUNICIPAL BOND ISSUERS HAD NO DIFFICULTY SELLING MORE THAN 1 BILLION OF NEW SECURITIES YESTERDAY ONE SELLOUT WAS THE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP'S 640 MILLION SERIES 1993C REFUNDING BOND ISSUE WHICH WAS PRICED BY A GOLDMAN SACHS & CO GROUP THE ISSUER IS A PUBLICBENEFIT CORPORATION OF NEW YORK STATE YIELDS FOR THE SECURITIES RANGE FROM 440 IN 1999 TO 580 FOR THE ZEROCOUPON BONDS DUE IN 2013 AND 2014 INITIALLY YIELDS RANGED FROM 440 IN 1999 TO 570 IN 2018 BUT THE ZEROCOUPON BONDS WERE ADDED WHEN THE ISSUE WAS RESTRUCTURED BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP HAVE RATED THE BONDS SINGLEA FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEAPLUS RATING THANKS TO DEMAND FROM INSTITUTIONS INVESTMENT ADVISORS AND INDIVIDUALS THE OFFERING WAS ALL SOLD YESTERDAY SAID EDWARD DROESCH OF THE MUNICIPAL UNDERWRITING AND SYNDICATION DEPARTMENT AT GOLDMAN SACHS IN SECONDARY DEALINGS PRICES WERE GENERALLY UNCHANGED TO 1/4 POINT LOWER AT THE CLOSE PUERTO RICO'S 525 GENERAL OBLIGATION REFUNDING BONDS OF 2018 FINISHED 1/8 WEAKER AT 94 3/8 TO YIELD 566 PRICES OF MORTGAGE SECURITIES ENDED LITTLE CHANGED AFTER A LISTLESS SESSION AMONG PRICES IN THE SECONDARY MARKET GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 COUPONS FOR JULY DELIVERY ENDED 2/32 LOWER AT 99 25/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR JULY DELIVERY BOTH FINISHED UNCHANGED AT 99 18/32 AND 99 13/32 RESPECTIVELY PRIMARYMARKET DEALINGS WERE LIMITED TO THE INCREASE OF ONE DEAL BUT THAT INCREASE MADE THE DEAL THE LARGEST AGENCY REAL ESTATE MORTGAGE INVESTMENT CONDUIT EVER PRICED OFFICIALS AT FREDDIE MAC SAID FREDDIE MAC INCREASED THE SIZE OF ITS REMIC 1552 TO 3 BILLION FROM 26 BILLION THE DEAL WHICH IS BACKED BY FREDDIE MAC'S 7 SECURITIES WAS ORIGINALLY SIZED AT 325 MILLION JOHN HUGHES CONTRIBUTED TO THIS ARTICLE 9307080155 930708 TECHNOLOGY BELLSOUTH NETWORK PROPOSAL ATLANTA BELLSOUTH CORP PROPOSED LETTING OTHER COMPANIES USE ITS ADVANCED INTELLIGENT NETWORK CAPABILITIES TO DEVELOP AND PROVIDE SPECIAL TELEPHONE SERVICES FOR NICHE MARKETS THE REGIONAL BELL COMPANY ASKED THE FEDERAL COMMUNICATIONS COMMISSION TO APPROVE ITS PLAN WHICH THE COMPANY BELIEVES WILL ENCOURAGE THE DEVELOPMENT OF VOICE RECOGNITION ADVANCED CALL FORWARDING AND SPECIAL VOICE MAIL APPLICATIONS IT ISN'T CERTAIN WHEN THE FCC WILL MAKE A DECISION BELLSOUTH SAID THE STEP WOULD LET PROVIDERS OF INFORMATION SERVICES DEVELOP PRODUCTS AND SERVICES THAT WOULD BE UNPROFITABLE FOR THE GIANT PHONE COMPANY 9307080154 930706 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 NATIONAL MUNI BOND FUNDS 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 9307080153 930708 LAW LEGAL BEAT TEACHING ETHICS TO LAWYER GROUPS IS PROVING TO BE A GROWTH INDUSTRY BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MICHAEL DAIGNEAULT IS TRYING TO TEACH LAWYERS HOW TO BE MORE ETHICAL IT'S A TRICKY ASSIGNMENT ADDRESSING ABOUT 50 LAWYERS AT A COURSE CALLED THE VIRTUOUS LAWYER MR DAIGNEAULT SUGGESTS THAT LAWYERS SHOULD BE MORE CIVIL AND GETS AN ARGUMENT FROM HALF THE ROOM I'M RELUCTANT TO FEEL THAT LAWYERS SHOULD BE NICE TO EACH OTHER SAYS ONE BURLY PRACTITIONER ATTENDING THE DISTRICT OF COLUMBIA BAR COURSE THE LAWYER LIKE OTHERS IN THE CLASS IS CONCERNED THAT COURTESY MAY COMPROMISE A LAWYER'S DUTY TO REPRESENT CLIENTS AGGRESSIVELY TO A SKEPTICAL PUBLIC THE NOTION OF LEGAL ETHICS MAY SEEM A CONTRADICTION IN TERMS BUT TO MR DAIGNEAULT IT'S A BUSINESS A GROWTH INDUSTRY EVEN HE RECENTLY STARTED WHAT IS BELIEVED TO BE THE ONLY VENTURE IN THE COUNTRY THAT SPECIALIZES IN TEACHING LAWYERS HOW TO BE MORE ETHICAL AND HE ACTUALLY HAS FOUND SOME FERTILE GROUND I THINK LAWYERS ARE DESPERATELY IN NEED OF THE TRAINING HE SAYS TO A LARGE EXTENT MR DAIGNEAULT IS CASHING IN ON THE FACT THAT LAWYERS ACROSS THE COUNTRY ARE GETTING RELIGION ABOUT ETHICS OR AT LEAST THE STUDY OF IT AN INCREASING NUMBER OF BAR ASSOCIATIONS FOR INSTANCE ARE REQUIRING LAWYERS TO TAKE ANNUAL ETHICS COURSES AS PART OF CONTINUING LEGAL EDUCATION REQUIREMENTS INDIVIDUAL LAW FIRMS ALSO ARE FOCUSING ON ETHICS TRAINING IN THE WAKE OF SOME LARGE SETTLEMENT PAYMENTS BY FIRMS ACCUSED OF MISCONDUCT IN THE SAVINGS AND LOAN DEBACLE RIGHT NOW IT IS A VERY HOT ISSUE SAYS SHERMAN COHN WHO TEACHES ETHICS AND PROFESSIONAL RESPONSIBILITY AT GEORGETOWN LAW CENTER I THINK IF MICHAEL WOULD HAVE TRIED THIS 10 YEARS AGO IT WOULD HAVE FALLEN ON ABSOLUTE DEAF EARS I DON'T KNOW OF ANY COMPETITION MR COHN SAYS OF MR DAIGNEAULT'S VENTURE NOTING THAT LAW FIRMS TRADITIONALLY HAVE LOOKED TO ACADEMICS SUCH AS HIMSELF FOR OCCASIONAL ETHICS TRAINING OR ELSE DONE THE WORK THEMSELVES INHOUSE MR DAIGNEAULT WHO EARNED TWO LAW DEGREES FROM GEORGETOWN SAYS ETHICS IS MY CALLING AFTER GRADUATION HE PRACTICED LAW BRIEFLY BUT SPENT SIX YEARS THROUGH LAST MONTH AS EXECUTIVE DIRECTOR OF AMERICAN INNS OF COURT A 13000MEMBER PROFESSIONAL SOCIETY THAT AIMS AMONG OTHER THINGS TO PROMOTE GOOD BEHAVIOR BY LAWYERS MR DAIGNEAULT'S NEW COMPANY ETHICS INC WHICH HE RUNS OUT OF HIS HOME IN FALLS CHURCH VA GOT STARTED IN MARCH AND HE HAS PICKED UP SEVERAL CLIENTS THE DC BAR SIGNED HIM TO A TWOYEAR CONTRACT TO CONDUCT CONTINUING LEGAL EDUCATION COURSES HE ALSO HAS WORKED FOR DICKSTEIN SHAPIRO & MORIN A 200LAWYER WASHINGTON FIRM AND FOR THE WASHINGTON OFFICE OF CHICAGO LAW FIRM KIRKLAND & ELLIS KIRKLAND RETAINED HIM TO CONDUCT SEMINARS ON CLIENT CONFIDENTIALITY FOR PARALEGALS AND SUPPORT STAFF AND PLANS A RETURN ENGAGEMENT FOR ITS ASSOCIATE ATTORNEYS EVENTUALLY MR DAIGNEAULT HOPES TO CONDUCT ETHICS AUDITS FOR LAW FIRMS INCLUDING A REVIEW OF THEIR MANAGEMENT SYSTEMS FOR HANDLING INTERNAL DISPUTES SUCH REVIEWS COULD HELP LAW FIRMS GET A BREAK ON THEIR MALPRACTICE INSURANCE PREMIUMS HE SAYS FOR AN ETHICS SPECIALIST MR DAIGNEAULT HAS SURPRISINGLY LITTLE USE FOR THE TRADITIONAL RULES OF THE GAME GOVERNING ATTORNEY CONDUCT MOST OF THE RULES HE SAYS ARE USELESS OR AMBIGUOUS IN GUIDING ATTORNEYS THROUGH THE ETHICAL MINEFIELDS THEY FACE ON A DAILY BASIS INSTEAD HE TEACHES VIRTUES AND HIS LECTURES TEND TO BE SPRINKLED WITH KANT CONFUCIUS AND THE BIBLE RATHER THAN BLACKLETTER LAW THIS IS NOT ABOUT THE RULES HE ANNOUNCES AT THE BEGINNING OF THE DC BAR CLASS LAST WEEK FOR THE BUDDING VIRTUOUS LAWYERS FOR THREE HOURS HE MAKES HIS POINT THROUGH A SERIES OF HYPOTHETICAL EXAMPLES ONE THE ACCIDENTAL FAX INVOLVES A LAWYER WHO RECEIVES A REVEALING MEMO FROM HIS OPPOSING COUNSEL COURTESY OF THE LATTER'S BUMBLING CLERK THE QUESTION ARISES WHAT DO YOU DO WITH IT MANY OF THE LAWYERS SAY THEY WOULD USE THE DOCUMENT WITHOUT HESITATING ONE PARTICIPANT NOTES THAT THE SITUATION IS QUITE DIFFERENT THAN RUMMAGING THROUGH SOMEBODY'S BRIEFCASE FOR AN ADVANTAGE ANOTHER INSISTS THAT HE HAS HEARD THAT VIRGINIA LAW ABSOLUTELY REQUIRES LAWYERS TO USE THE INFORMATION THE TRADITIONAL RULES ARE SILENT ON THE QUESTION THOUGH MR DAIGNEAULT PRODUCES AN AMERICAN BAR ASSOCIATION OPINION THAT COUNSELS IN FAVOR OF RETURNING THE DOCUMENT WITHOUT READING IT A NUMBER OF THE ATTORNEYS FIND THIS UNREALISTIC BUT MR DAIGNEAULT SAYS IT'S THE VIRTUOUS THING TO DO LATER THE DISCUSSION TURNS TO THE ETHICS OF DEALING WITH A MAJOR CLIENT WHO REFUSES TO HAVE WOMEN LAWYERS WORKING ON HIS CASES MR DAIGNEAULT MAINTAINS A FIRM CAN'T GIVE IN TO A CLIENT'S CHAUVINISM THOUGH SOME OF THE LAWYERS MEN AND WOMEN SAY THE FIRM HAS TO WEIGH THE RISK OF LOSING IMPORTANT BUSINESS IN ANOTHER HYPOTHETICAL CASE THE GROUP GRAPPLES OVER PROTECTING CLIENT CONFIDENCES FOR PEOPLE WITH THE AIDS VIRUS EVEN IF THEY MAY BE PUTTING THEIR SEX PARTNERS AT RISK MR DAIGNEAULT SAYS THAT WHEN SOMEONE'S LIFE IS IN DANGER A LAWYER SHOULD CONSIDER VIOLATING CONFIDENCES WHETHER SUCH SESSIONS WILL HELP USHER IN A NEW AGE OF ENLIGHTENED LAW IS UNCLEAR FOR A NUMBER OF THE LAWYERS PRESENT THE CLASS HAD MOSTLY PRAGMATIC SIGNIFICANCE FALLING A DAY BEFORE THE DEADLINE FOR MEETING A VIRGINIA BAR ETHICSTRAINING REQUIREMENT THE TIMING WAS CONVENIENT ACKNOWLEDGES DAVID PHIPPEN A LABOR LAWYER WHO NEEDED THE CREDIT WASHINGTON HAS NO SUCH MANDATORY REQUIREMENTS BUT IS CONSIDERING IT LAWYER JIM ROSSI SAYS HE STUDIED ETHICS IN GRADUATE SCHOOL AND THINKS MR DAIGNEAULT MAY BE ON TO SOMETHING HE HAS A GREAT IDEA I WISH I WOULD HAVE THOUGHT OF IT A LOT OF LAW FIRMS HERE ARE VERY WORRIED ABOUT RECENT DEVELOPMENTS IN LEGAL MALPRACTICE SAYS MR ROSSI I THINK IT IS GOING TO BE VERY PROFITABLE IN A RARE EXAMPLE OF A SHAREHOLDERS' CLASSACTION GOING TO TRIAL A JURY CLEARED SYSTEM SOFTWARE ASSOCIATES INC OF ALLEGATIONS THAT IT MISLED INVESTORS THE CASE IN FEDERAL COURT IN CHICAGO POSED THE ISSUE OF HOW MUCH WEIGHT SHOULD BE GIVEN TO AN EXECUTIVE'S STATEMENTS ABOUT A COMPANY'S POTENTIAL PERFORMANCE THE TRIAL ALSO DEALT WITH THE EXTENT TO WHICH THE VOLATILITY OF A TECHNOLOGY COMPANY SUCH AS SYSTEM SOFTWARE CAN ACCOUNT FOR AN UNEXPECTED DROP IN STOCK PRICE THE SUIT BROUGHT ON BEHALF OF SYSTEM SOFTWARE HOLDERS STEMMED FROM STATEMENTS MADE BY THE CHICAGO COMPANY'S FORMER CHIEF FINANCIAL OFFICER DAVID L HARBERT MR HARBERT TOLD A REPORTER ON JAN 14 1991 THAT DESPITE THE STOCK'S DOWNWARD DRIFT IN PRICE THE COMPANY EXPECTED SOLID EARNINGS FOR THE YEAR DAYS LATER US ARMED FORCES BEGAN BOMBING IRAQ ON FEB 21 1991 SYSTEM SOFTWARE'S STOCK DROPPED BY A THIRD AFTER A DISAPPOINTING FIRSTQUARTER EARNINGS REPORT BLAMED IN PART ON THE GULF WAR THE HOLDERS SUED FOR FRAUD OVER MR HARBERT'S STATEMENTS BUT SYSTEM SOFTWARE ARGUED THAT MR HARBERT'S PROJECTION WASN'T FRAUDULENT BECAUSE THE DROP IN EARNINGS WAS THE RESULT OF THE UNEXPECTED TURMOIL THAT THE GULF WAR HAD ON THE COMPANY'S INTERNATIONAL BUSINESS OPERATIONS THE JURY AGREED FINDING AFTER A TWOWEEK TRIAL THAT MR HARBERT HAD BOTH A REASONABLE BASIS TO MAKE HIS PREDICTION AND THAT HE MADE IT IN GOOD FAITH THIS WAS A TYPICAL KNEEJERK CLAIM OF FRAUD BY HINDSIGHT SAYS LOWELL SACHNOFF OF THE CHICAGO FIRM SACHNOFF & WEAVER REPRESENTING SYSTEM SOFTWARE FORWARDLOOKING STATEMENTS ARE INHERENTLY UNCERTAIN AND THEY SHOULDN'T PRODUCE SECURITIES LIABILITY I STEPHEN RABIN AN ATTORNEY WITH THE NEW YORK LAW FIRM RABIN & GARLAND WHICH REPRESENTED THE HOLDERS SAID HE'S CONSIDERING AN APPEAL WHO'S NEWS GERI WEISEMAN KOLESAR REJOINED NEW YORK LAW FIRM ANDERSON KILL OLICK & OSHINSKY AS A PARTNER MS KOLESAR SPENT THE PAST TWO YEARS AS AN AIDE TO SEN FRANK LAUTENBERG D NJ ON SUPERFUND AND OTHER ENVIRONMENTAL ISSUES MS KOLESAR WILL PRACTICE IN THE FIRM'S WASHINGTON OFFICE JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9307080152 930708 STONE & WEBSTER JOINT VENTURE NEW YORK STONE & WEBSTER INC SAID A JOINT VENTURE OF ITS STONE & WEBSTER ENGINEERING CORP UNIT WILL OVERSEE DEVELOPMENT OF A 128 BILLION POWER PLANT IN MALAYSIA STONE & WEBSTER ENGINEERING SAID SWEC ZAINAL ITS JOINT VENTURE WITH RAJA TAN SRI ZAINAL SDN BHD A MALAYSIAN ENGINEERING COMPANY WILL ACT AS THE OWNER'S ENGINEER FOR CONSTRUCTION OF THE LUMUT POWER PLANT THE FACILITY POWERED BY NATURAL GAS WILL GENERATE 13 MILLION KILOWATTS OF ELECTRICITY AND WILL BE COMPLETED IN 3 1/2 YEARS STONE & WEBSTER IS AN ENGINEERING AND CONSTRUCTION COMPANY 9307080151 930708 INTERNATIONAL EC BLOCKS ITALY FROM WRITING OFF DEBT OF STEELMAKER ACTS AGAINST SUBSIDIES BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS WARNING OF POTENTIAL CHAOS IN THE EUROPEAN COMMUNITY'S STEEL INDUSTRY THE EC COMMISSION INVOKED RARELY USED POWERS TO BLOCK ITALY'S PLANNED WRITEOFF OF THE MASSIVE DEBT OF STATEOWNED STEELMAKER ILVA SPA IT ALSO OPENED FORMAL PROCEEDINGS AGAINST THE SUBSIDIES ITALY HAS BEEN GIVING ILVA THE ACTIONS COUPLED WITH POSTPONEMENT OF A SPECIAL MEETING TO DEAL WITH THE EC'S STEEL CRISIS REFLECT CONCERN THAT A PLAN TO RESTRUCTURE THE COMMUNITY'S AILING STEEL SECTOR IS IN TROUBLE THE WHOLE THING COULD FALL APART SAID THE EC'S COMPETITION COMMISSIONER KAREL VAN MIERT THAT'S WHY WE'RE RINGING THE ALARM BELL THE COMMISSION UNABLE TO PERSUADE ITALY TO PRESENT A CAPACITYREDUCTION PLAN FOR ILVA SAID ROME'S INTRANSIGENCE THREATENED A BROADER EC PLAN DESIGNED TO REDUCE THE COMMUNITY'S BLOATED CAPACITY BY 30 MILLION METRIC TONS THAT PLAN CALLS FOR VOLUNTARY CUTS AGREED TO BY STEELMAKERS BUT PRIVATELY OWNED STEEL COMPANIES ESPECIALLY IN GERMANY REFUSE TO SLASH CAPACITY UNLESS REDUCTIONS ARE SHARED BY STATEOWNED STEELMAKERS SUBSIDIZED BY THEIR GOVERNMENTS FACED WITH NO PROSPECTS FOR PROGRESS AT A SPECIAL MEETING OF EC INDUSTRY MINISTERS SCHEDULED FOR JULY 26 AT WHICH ITALIAN GERMAN AND SPANISH STEEL SUBSIDIES WERE TO BE TACKLED TOGETHER OFFICIALS POSTPONED THE MEETING UNTIL SEPT 21 TO AVOID A DIVISIVE FREEFORALL AT A SESSION REQUIRING UNANIMITY IF A SOLUTION CAN'T BE FOUND IN THE AUTUMN WARNED MR VAN MIERT I'M AFRAID WE MIGHT BE HEADING TOWARD CHAOS BECAUSE EC GOVERNMENTS WOULD BE TEMPTED TO ENGAGE IN A NOHOLDSBARRED SUBSIDY RACE TO PRESERVE STEELMAKING JOBS IN THE MIDST OF A RECESSION THAT SHOWS NO SIGNS OF ABATING IF ITALY DOESN'T COOPERATE SAID MR VAN MIERT OTHER EC MINISTERS COULD BY A TWOTHIRDS VOTE TAKE THE UNUSUAL STEP OF IMPOSING SANCTIONS SUCH AS A SUSPENSION OF COMMUNITY STEEL FUNDS OR IMPORT RESTRICTIONS ON ITALIAN STEEL PRODUCTS THE COMMISSION'S POLICY TOWARD THE STEEL SECTOR IS TO ALLOW LIMITED STATE AID IF THE ASSISTANCE IS COUPLED WITH PLANS TO REDUCE CAPACITY BRUSSELS WHICH SAYS THE ITALIAN GOVERNMENT IS COVERING ILVA LOSSES TOTALING 150 BILLION LIRE 969 MILLION A MONTH SOUGHT A THREE MILLIONTON REDUCTION IN ILVA'S CAPACITY BUT ITALY INSTEAD PROPOSED A RESTRUCTURING PLAN BASED ON CANCELLATION OF 90 OF ILVA'S EIGHT TRILLIONLIRE DEBT AND CREATION OF A NEW VIRTUALLY DEBTFREE COMPANY TO REPLACE ILVA THIS QUASIPLAN CALLED FOR NO CAPACITY REDUCTION MR VAN MIERT SAID SO THE COMMISSION USING POWERS IT HAS INVOKED ONLY ONCE BEFORE ORDERED ILVA TO SUSPEND ITS PLANNED WRITEOFF OF PAST DEBT IN HOPES OF FORCING THE ITALIAN GOVERNMENT BACK TO THE NEGOTIATING TABLE THE COMMISSION STOPPED SHORT OF EXTENDING ITS INJUNCTION TO THE CONTINUING SUBSIDIES BECAUSE IT SAID SUCH A BRUTAL STEP COULD JEOPARDIZE ITALY'S BROADER PROGRAM TO PRIVATIZE ITS STATEOWNED INDUSTRIES IN REACTION TO THE MOVE ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE THE STATE HOLDING COMPANY THAT OWNS ILVA ISSUED A STATEMENT EXPRESSING SERIOUS RESERVATIONS ON THE CONTENT OF AND MOTIVATIONS BEHIND THE EC DECISION WHICH ARE ONLY KNOWN ON AN INFORMAL LEVEL BUT IT ADDED THAT IT WILL MAINTAIN ITS PLAN FOR MEETINGS WITH THE EC COMMISSION AND IS AVAILABLE TO IDENTIFY ACCEPTABLE SOLUTIONS IN THE CONTEXT OF THE REORGANIZATION OF ITALIAN AND EUROPEAN STEEL 9307080150 930708 ECOGEN RECEIVES EPA APPROVAL LANGHORNE PA ECOGEN INC SAID IT RECEIVED APPROVAL FROM THE ENVIRONMENTAL PROTECTION AGENCY TO SELL ITS PHEROMONEBASED BIOINSECTICIDE USED FOR CONTROL OF THE TOMATO PINWORM THE PRODUCT DUPLICATES THE FEMALE PINWORM MATING PHEROMONE OR NATURAL SCENT TO CONFUSE THE MALE PINWORM AND SUPPRESS MATING COMMUNICATION ECOGEN IS AN AGRICULTURAL BIOTECHNOLOGY COMPANY 9307080149 930708 INTERNATIONAL BRIEF DIXONS GROUP PLC UK RETAILER IS EXPECTED TO CLOSE 185 US SILO STORES ANALYSTS EXPECT UK RETAILER DIXONS GROUP PLC TO CLOSE ITS 185 SILO ELECTRONICS AND APPLIANCE STORES IN THE US IF THE UNPROFITABLE CHAIN DOESN'T SHOW MARKED IMPROVEMENT BY THE END OF THE CHRISTMAS SEASON DIXONS WILL REEVALUATE THE US OPERATIONS THROUGH CHRISTMAS AND HOPES TO ANNOUNCE PLANS FOR THE GROUP AT THE BEGINNING OF NEXT YEAR JOHN CLARE MANAGING DIRECTOR OF DIXONS SAID IN AN INTERVIEW HE WOULDN'T COMMENT ON WHETHER DIXONS WOULD CLOSE SILO IF THE CHAIN DIDN'T SOON SHOW SIGNS OF TURNING THE CORNER WE HAVE TO SEE OURSELVES BACK ON TRACK TO BREAKING EVEN EVEN IF WE DON'T BREAK EVEN HE SAID YESTERDAY DIXONS REPORTED A 33 DROP IN ITS PRETAX PROFIT TO 335 MILLION 504 MILLION FOR THE YEAR ENDED MAY 1 MAINLY DUE TO LOSSES AT SILO LOSSES IN THE US TOTALED 224 MILLION COMPARED WITH 169 MILLION THE PREVIOUS YEAR 9307080148 930708 EVEREX EXPLORES POSSIBLE SALE FREMONT CALIF EVEREX SYSTEMS INC WHICH FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN JANUARY SAID IT IS EXPLORING A POSSIBLE SALE OF THE COMPANY EVEREX WHICH MAKES DESKTOP COMPUTERS HAS BEEN HURT BY THE PERSONALCOMPUTER PRICE WAR EVEREX SAID IT HIRED INVESTMENT BANKER BROADVIEW ASSOCIATES TO ADVISE IT ON AN INVESTMENT EXCHANGE OR SALE OF ALL OR PART OF THE COMPANY 9307080147 930708 CINCINNATI BELL STOCK CONVERTED CINCINNATI CINCINNATI BELL INC SAID WESTERN & SOUTHERN LIFE INSURANCE CO CONVERTED INTO COMMON SHARES 1578948 SHARES OF CINCINNATI BELL 725 CUMULATIVE CONVERTIBLE VOTING PREFERRED STOCK CINCINNATI BELL TOLD WESTERN & SOUTHERN LAST MONTH IT WOULD REDEEM THE SHARES ON JULY 26 WESTERN & SOUTHERN HAD THE OPTION TO CONVERT PREFERRED SHARES TO COMMON AT TWO COMMON FOR EACH PREFERRED OR REDEEM THEM FOR CASH WESTERN & SOUTHERN NOW OWNS 6627696 COMMON SHARES OR 102 OF THE SHARES OUTSTANDING THE PHONE COMPANY SAID ELIMINATION OF THE PREFERRED DIVIDEND WILL OFFSET THE DILUTIVE EFFECT ON EARNINGS OF THE ADDITIONAL SHARES 9307080146 930708 INTERNATIONAL BRIEF LUFTHANSA AG AIRLINE SAYS IT BROKE EVEN DURING THE SECOND QUARTER LUFTHANSA AG GERMANY'S FLAGSHIP AIRLINE SAID IT BROKE EVEN AT ITS PARENTCOMPANY OPERATIONS IN THE SECOND QUARTER FOLLOWING A LOSS OF 245 MILLION MARKS 1438 MILLION IN THE FIRST THREE MONTHS LUFTHANSA ALSO HALVED ITS CONSOLIDATED FIRSTHALF PRETAX LOSS COMPARED WITH ITS YEAREARLIER DEFICIT IT SAID SPEAKING AT THE ANNUAL MEETING IN HAMBURG GERMANY CHAIRMAN JUERGEN WEBER SAID THE IMPROVED RESULTS WERE THE RESULT OF AUSTERITY MEASURES STILL HE WARNED AGAINST EXAGGERATED HOPES ADDING LUFTHANSA WON'T BE IN THE BACK IN 1993 FOR 1992 THE AIRLINE'S CONSOLIDATED GROUP NET LOSS WAS 393 MILLION MARKS NARROWED FROM A 444 MILLIONMARK DEFICIT IN THE PREVIOUS YEAR 9307080145 930708 PROPERTY TRUST OF AMERICA SANTA FE NM PROPERTY TRUST OF AMERICA SAID IT ACQUIRED NINE MULTIFAMILY PROPERTIES AND LAND FOR 756 MILLION THE COMPANY DIDN'T IDENTIFY THE SELLERS THE COMPANY SAID THE LAND WILL BE USED TO DEVELOP TWO ADDITIONAL MULTIFAMILY PROPERTIES IN THE SOUTHWEST THE PROPERTIES INCLUDE 2361 UNITS IN TEXAS COLORADO NEW MEXICO AND ARIZONA 9307080144 930708 INTERNATIONAL BRIEF RENAULT SA MINISTER SAYS MERGER PLANS WITH VOLVO ARE NEARLY SET THE MERGER PLANS FOR FRENCH STATECONTROLLED AUTO MAKER RENAULT SA AND AB VOLVO ITS SWEDISH PARTNER ARE NEARING COMPLETION SAID GERARD LONGUET FRENCH INDUSTRY MINISTER MR LONGUET SAID IN AN INTERVIEW WITH THE FRENCH DAILY LES ECHOS THAT HE HOPES THE DETAILS OF THE MERGER LONG RUMORED WILL BE IN PLACE BY THE END OF AUGUST HE ALSO SAID THE NEW ENTITY WOULD BE UNDER FRENCH CONTROL WE ARE TAKING CARE THAT THE RENAULTVOLVO MERGER BE QUICK AND FACILITATE THE SUBSEQUENT PRIVATIZATION OF THE NEW GROUPING HE SAID RENAULT AND VOLVO ALREADY HAVE CROSSED SHAREHOLDINGS AND HAVE INCREASED THEIR COOPERATION OFFICIALS OF BOTH COMPANIES HAVE BEEN ENTHUSIASTIC ABOUT THE BENEFITS OF THE PARTNERSHIP FOR SOME TIME POINTING TO COST SAVINGS AND A SUCCESSFUL COMBINING OF THE TWO COMPANIES' CULTURES VOLVO DECLINED TO COMMENT ON THE MINISTER'S STATEMENTS 9307080143 930708 INTERNATIONAL BRIEF FERRUZZI SPA AGROINDUSTRIAL GIANT FACES INQUIRY BY ITALY SENATE PANEL ITALY'S SENATE DECIDED THAT ITS FINANCE COMMISSION SHOULD SET UP AN INQUIRY INTO FINANCIALLY STRAPPED FERRUZZI SPA FERRUZZI A GIANT AGROINDUSTRIAL FOOD AND ENERGY GROUP HANDED OVER OPERATIONAL CONTROL TO FIVE CREDITOR BANKS AFTER DISCLOSING THAT ITS DEBT HAD BALLOONED TO AN UNMANAGEABLE LEVEL OF NEARLY 30 TRILLION LIRE 1939 BILLION THE COMPANY ALSO HAD TO RESTATE ITS 1992 RESULTS MOSTLY BECAUSE OF UNEXPECTED AND UNEXPLAINED LOSSES OF 320 BILLION LIRE POSTED BY TWO DIVISIONS THE BANKS MEDIOBANCA BANCA COMMERCIALE ITALIANA CREDITO ITALIANO BANCA DI ROMA AND ISTITUTO BANCARIO SAN PAOLO DI TORINO ARE PUTTING TOGETHER A RESTRUCTURING PLAN FOR THE GROUP THAT COULD INCLUDE A DEBTFOREQUITY SWAP VINCENZO DESARIO VICEDIRECTOR GENERAL OF THE BANK OF ITALY TOLD THE LOWER HOUSE OF PARLIAMENT YESTERDAY THAT THE 10 LARGEST ITALIAN CREDIT GROUPS WERE EXPOSED TO ABOUT 15 TRILLION LIRE OF FERRUZZI DEBT AND THAT ABOUT 150 ITALIAN BANKS HAD EXPOSURE OF SOME SIZE IT WAS DISCLOSED EARLIER THAT FOREIGN BANKS ARE EXPOSED TO SOME 65 TRILLION LIRE 9307080142 930708 INTERNATIONAL BRIEF TOYOTA MOTOR CORP PROFIT IN LATEST FISCAL YEAR MAY TRAIL PREVIOUS YEAR'S TOYOTA MOTOR CORP'S PRETAX PROFIT FOR THE CURRENT FISCAL YEAR WILL HAVE EXTREME DIFFICULTY REACHING THE ESTIMATED 300 BILLION YEN 276 BILLION PROFIT FOR THE YEAR ENDED JUNE 30 OFFICIALS SAID IF THE COMPANY FAILS TO MEET THE TARGET THE RESULT WOULD MARK THE FOURTH CONSECUTIVE YEAR OF DECLINE IN PRETAX PROFIT THE LONGEST SLUMP SINCE TOYOTA OPENED IN 1937 IN THE MOST RECENT YEAR TOYOTA'S PRETAX PROFIT WAS AROUND 300 BILLION YEN OR 20 LESS THAN THE 37586 BILLION YEN A YEAR EARLIER OFFICIALS RECKON TOYOTA WILL DISCLOSE RESULTS NEXT MONTH ON TUESDAY TOYOTA PRESIDENT TATSURO TOYODA SAID COMPANY SALES HAVE BEEN HURT BY SLUGGISH DOMESTIC SALES AND THE EFFECT OF A STRONG YEN WHICH CUTS INTO PROFITS ON EXPORTS AFTER CONVERSION INTO THE JAPANESE CURRENCY IN PART TO COUNTER THE STRONG YEN TOYOTA WILL INCREASE US PRICES FOR ITS VEHICLES STARTING WITH 1994 MODELS 9307080141 930708 INTERNATIONAL BRIEF BASF AG MAJOR JOB CUTS ARE PLANNED FOR PHARMACEUTICAL GROUP GERMAN CHEMICAL COMPANY BASF AG SAID IN LUDWIGSHAFEN GERMANY THAT IT PLANS MAJOR JOB CUTS IN THE GERMAN DIVISIONS OF ITS PHARMACEUTICAL UNIT CLEARLY NEGATIVE OPERATING RESULTS IN THE FIRST SIX MONTHS OF 1993 RESULTING FROM GERMAN HEALTHCARE REFORMS ARE TO BLAME FOR THE LAYOFFS SAID HANSUWE SCHENCK DIRECTOR OF BASF'S PHARMACEUTICAL GROUP MR SCHENCK SAID 10 TO 15 OF THE WORKERS COULD BE AFFECTED THE PHARMACEUTICAL GROUP WHICH INCLUDES KNOLL AG MINDEN PHARMA GMBH AND NORDMARK ARZNEIMITTEL GMBH CURRENTLY EMPLOYS 3785 WORKERS IN GERMANY BASF HAS BEEN PREPARING TO REORGANIZE THE PHARMACEUTICAL DIVISION FOR MORE THAN A YEAR NO FINAL DECISION HAS BEEN MADE ON WHETHER TO MERGE THE THREE PHARMACEUTICAL COMPANIES KNOLL MINDEN AND NORDMARK A BASF SPOKESWOMAN SAID ALTHOUGH THAT OPTION HAS BEEN DISCUSSED 9307080140 930708 INTERNATIONAL FOKKER GETS SWEDISH JET ORDER AMSTERDAM DUTCH AEROSPACE GROUP FOKKER NV SAID IT WON A FIRM ORDER FOR FIVE OF ITS 107PASSENGER F100 FANJETS FROM TRANSWEDE AIRWAYS OF SWEDEN THE AIRLINE ALSO TOOK OUT OPTIONS TO BUY ANOTHER TWO F100S FOKKER SAID TRANSWEDE IS THE FIRST SCANDINAVIAN AIRLINE TO BUY THE F100 IN VIEW OF THE ONGOING AIRLINE LIBERALIZATION IN SCANDINAVIA FOKKER FORESEES A LARGE SALES POTENTIAL FOR ITS FAMILY OF JET AIRCRAFT IN THIS PART OF THE WORLD SAID FOKKER WHICH IS 51CONTROLLED BY GERMANY'S DEUTSCHE AEROSPACE AG FOKKER DIDN'T DISCLOSE THE TOTAL VALUE OF THE ORDERS BUT AN F100 HAS A BASE PRICE OF ABOUT 28 MILLION 9307080139 930708 MARKETING & MEDIA ADVERTISING A STAR IS BREWED AS OBSCURE BEER SCORES WITH ROLE IN HIT MOVIE BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL AN OBSCURE BRAND OF BEER IS VIRTUALLY THE STAR OF A TAUT LITTLE SCENE IN THE NEW HIT FILM THE FIRM THE SCENE CAYMAN ISLANDS MITCH MCDEERE HUNKY YOUNG ATTORNEY AKA HUNKY TOM CRUISE AND AVERY TOLAR HIS WORLDLY MENTOR GENE HACKMAN HAVE JUST FINISHED A GRUELING CLIENT MEETING AND ARE READY FOR SOME SERIOUS MALE BONDING IN AVERY'S LUXURY BEACHFRONT CONDO SOUNDS LIKE A MOMENT FOR A BUDWEISER OR AN AMSTEL LIGHT INSTEAD AVERY INVITES MITCH TO GRAB A RED STRIPE OUT OF THE FRIDGE A WHAT RED STRIPE THE BEER IN THE LITTLE BROWN BOTTLES THAT TOURISTS GUZZLE ON THEIR CARIBBEAN VACATIONS HAS BEEN A RELATIVE UNKNOWN IN THE US UNTIL THE FIRM OPENED TO BOFFO NUMBERS LAST WEEKEND CLOSE TO SEVEN MILLION PEOPLE LINED UP FOR THE OPENING WEEKEND OF THE PARAMOUNT PICTURES VERSION OF THE JOHN GRISHAM NOVEL THEY GOT TO SEE RED STRIPE GET AN ONSCREEN ENDORSEMENT FROM GENE HACKMAN WHO ISN'T KNOWN FOR HIS ENDORSEMENTS SAVE FOR HIS UNITED AIRLINES VOICEOVERS AND WATCHED THE TOM CRUISE CHARACTER DISAPPEAR INTO A CLOSET BEER IN HAND WHILE HE SNOOPS FOR SOME EVIDENCE THE COST TO RED STRIPE'S MARKETER ALL OF 5000 MOST OF IT IN FREE BEER SHIPPED TO THE FILM CREW IT'S WHAT WE CALL A HOME RUN CROWS PATTI GANGUZZA VICE PRESIDENT OF ENTERTAINMENT MARKETING OF AIM PROMOTIONS INC OF ASTORIA NEW YORK WHICH SCORED THE APPEARANCE FOR RED STRIPE SUCH COUPS DON'T HAPPEN OFTEN IN THE BUSINESS OF PRODUCT PLACEMENT AND THEY USUALLY COST A BUNDLE ADVERTISERS HAVE BEEN KNOWN TO PAY 50000 OR MORE FOR SUCH HANDSON PLACEMENT AND VERBAL MENTION OF THEIR PRODUCTS ON THE SILVER SCREEN IN THE CASE OF RED STRIPE'S US MARKETER JOHN LABATT LTD'S LABATT'S USA IT RELIED ON ABUNDANT CASES OF FREEBIES EVER SINCE ET THE EXTRA TERRESTRIAL MADE AN OVERNIGHT SUCCESS OF REESE'S PIECES ADVERTISERS HAVE EAGERLY PONIED UP CASH FOR PLUGS IN MOTION PICTURES BUT SOME OF THE BEST DEALS ENDED UP GETTING LEFT ON THE CUTTINGROOM FLOOR SO MORE ADVERTISERS ARE DISCOVERING THEY CAN GET THE SAME CONSIDERATION IN EXCHANGE FOR GIVEAWAYS RED STRIPE SENT CASES OF BEER AND TSHIRTS ON LOCATION TO MEMPHIS AND THE CAYMAN ISLANDS WHILE THE MOVIE WAS BEING MADE AND LATER TO OPENING NIGHT PARTIES AROUND THE COUNTRY WE SENT AS MUCH AS WE COULD TO ANYONE WE COULD SAYS MARCO MORETTI RED STRIPE'S US BRAND MANAGER THE FIRM WAS A NATURAL FOR RED STRIPE MR MORETTI'S FRIENDS HAD POINTED OUT TO HIM MONTHS AGO THAT HIS BRAND FIGURES PROMINENTLY IN THE NOVEL BUT IT DIDN'T APPEAR IN THE VERSION OF THE SCRIPT THAT CROSSED MS GANGUZZA'S DESK MONTHS BEFORE THE FILM WENT INTO PRODUCTION IN KEEPING WITH THE INTEGRITY OF THE NOVEL WE SUGGESTED WE WOULD PROVIDE THE BEER FOR THE MOVIE MS GANGUZZA SAYS A SPOKESWOMAN FOR PARAMOUNT PICTURES A UNIT OF PARAMOUNT COMMUNICATIONS SAYS THE BIGGEST REASON THE BEER IS IN THE SCENE IS THAT IT TAKES PLACE IN THE CARIBBEAN IT IS THERE BECAUSE OF DIRECTOR SYDNEY POLLACK'S DESIRE TO BE VERY ACCURATE MR MORETTI SAYS HE IS HAPPY JUST TO BE A PART OF THE MOVIE BUT HE HASN'T BEEN ABLE TO RESIST A FEW CALCULATIONS BY TUESDAY NIGHT THE FIRM HAD GROSSED CLOSE TO 50 MILLION DIVIDE THAT BY AN AVERAGE TICKET PRICE OF 675 AND THAT MEANS 74 MILLION VIEWERS SAW THE RED STRIPE PLUG MR MORETTI'S 5000 IN FREEBIES COMES OUT TO ABOUT 68 CENTS PER THOUSAND MOVIEGOERS AND IT'S A CAPTIVE AUDIENCE HE ADDS MANY OF WHOM ARE LIKELY UPSCALE LAWYERS THINGS HAVEN'T ALWAYS GONE SO WELL FOR MR MORETTI'S MOVIE VENTURES HE HAD A SIMILAR ARRANGEMENT TO GET HIS ITALIAN IMPORT BEER MORETTI WHICH HIS GREATGREAT GRANDFATHER BEGAN BREWING IN THE 19TH CENTURY INTO THE SHARON STONE VEHICLE SLIVER BUT THE BOTTLE WAS SEEN ONLY AT A DISTANCE AND NOT TOO CLEARLY IF YOU KNOW THE BRAND YOU KNOW IT'S MORETTI MR MORETTI SAYS PRODUCT PLACEMENT HAS COME UNDER FIRE FROM CONSUMER ACTIVIST GROUPS WHO CRITICIZE THEM AS ADVERTISING MASQUERADING AS ART BUT EXECUTIVES WHO NEGOTIATE THE DEALS INSIST THAT THE USE OF BRANDED GOODS IN MOVIES IS ALMOST ALWAYS A CREATIVE DECISION ONE THAT ADVERTISERS NEEDN'T PAY FOR IN CASH IF THEY KNOW HOW TO SPOT SUITABLE OPPORTUNITIES UNDER SUCH NONCASH ARRANGEMENTS EVIAN WATER AND KEDS SNEAKERS APPEARED IN SLEEPLESS IN SEATTLE GATORADE AND SPORTS ILLUSTRATED ARE SHOWING UP IN THE NEW FILM ROOKIE OF THE YEAR NIKE IS SET TO APPEAR IN FREE WILLY STARS OF THE THE FIRM WEAR NIKE APPAREL AND FOOTWEAR WHICH COST THE BIG SNEAKER MAKER BLACK LEATHER BAGS FOR THE CREW REMINGTON REMINGTON PRODUCTS TAPPED GREY ADVERTISING NEW YORK FOR ITS ESTIMATED 15 MILLION ACCOUNT ENDING A THREEMONTH SEARCH THAT HAD NARROWED TO GREY AND TOWNE ROTTER SILVERSTEIN OF NEW YORK GREY SAID REMINGTON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER VICTOR KIAM IS LIKELY TO CONTINUE APPEARING IN COMMERCIALS IN A SIGN OFF AT THE END OF THE SPOTS THE ACCOUNT WAS PREVIOUSLY HANDLED IN HOUSE CHASE CLARION DIRECT A UNIT OF D'ARCY MASIUS BENTON & BOWLES WON CHASE MANHATTAN BANK'S STUDENT CREDITCARD ACCOUNT AFTER A REVIEW THE ACCOUNT WAS PREVIOUSLY AT KIRSHENBAUM & BOND NEW YORK CLARION DIRECT WAS FORMERLY KNOWN AS SAUGATUCK MARKETING GROUP OF WESTPORT CONN DMB&B ACQUIRED THE FIRM IN MAY ACCOUNTS TBWA SWITZER WOLFE THE ST LOUIS OFFICE OF OMNICOM GROUP'S TBWA WON THE CLARK OIL & REFINING ACCOUNT A NEW BUSINESS WITH ESTIMATED BILLINGS OF 4 MILLION THE MILAN OFFICE OF INTERPUBLIC GROUP'S LOWE GROUP PIRELLA GOTTSCHE LOWE WON A GLOBAL ASSIGNMENT FOR CINZANO VERMOUTH FROM GRAND METROPOLITAN'S INTERNATIONAL DISTILLERS & VINTNERS 9307080138 930708 INTERNATIONAL SOUTH KOREANS CHARGE RELEASE AMWAY AGENTS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE ARREST OF A US BUSINESSMAN THREATENS TO MAR PRESIDENT CLINTON'S POSTSUMMIT VISIT TO SOUTH KOREA SATURDAY LAST THURSDAY POLICE DETAINED NEARLY A DOZEN REPRESENTATIVES OF AMWAY KOREA LTD AND SUNRIDER KOREA CO THE LOCAL ARMS OF THE USBASED HOMEPRODUCTS COMPANIES ON SUSPICION OF VIOLATING KOREA'S DIRECTSALES LAW AFTER A NIGHT OF QUESTIONING FIVE WERE ARRESTED AND HELD WITHOUT BAIL THREE KOREANS A TAIWANESE AND AMERICAN DAVID USSERY AMWAY KOREA'S GENERAL MANAGER THE FIVE MEN WERE RELEASED YESTERDAY BUT ORDERED NOT TO TRAVEL THE CHARGES WERE LEFT INTACT MR USSERY'S RELEASE FOLLOWED A FLURRY OF DIPLOMATIC ACTIVITY THAT INCLUDED SENIOR US AND KOREAN OFFICIALS THIS ONLY SOLVES THE ISSUE OF THEIR BEING IN JAIL IT'S STILL A MAJOR CONCERN SAID A US EMBASSY OFFICIAL IN SEOUL THE INCIDENT IS EXPECTED TO ADD TO KOREA'S REPUTATION AS A MINEFIELD FOR FOREIGN INVESTMENT AN ISSUE MR CLINTON AND KOREAN PRESIDENT KIM YOUNG SAM ARE EXPECTED TO ADDRESS THIS WEEKEND IT HAS ALSO PROMPTED AMWAY TO FRET ABOUT ITS COMMITMENT TO KOREA'S INTERNATIONAL EXPOSITION OR EXPO '93 WHICH OPENS IN LESS THAN A MONTH AMWAY IS THE LEAD SPONSOR OF THE US PAVILION IN THE EVENT WHICH THE KOREAN GOVERNMENT REGARDS ALONGSIDE THE 1988 SEOUL OLYMPICS AS A RITE OF PASSAGE IN THE COUNTRY'S DEVELOPMENT IF OUR PEOPLE CAN BE ARRESTED INAPPROPRIATELY THEN THE AMWAY EMPLOYEES WE HAVE COMMITTED TO EXPO MAY BE SUBJECT TO THE SAME TREATMENT AND I DON'T WANT TO PLACE THEM IN THAT POSITION TOM EGGLESTON AMWAY KOREA'S CHIEF OPERATING OFFICER SAID IN A TELEPHONE INTERVIEW FROM SHANGHAI WHERE HE WAS ON BUSINESS HE SAID AMWAY DOESN'T PLAN TO BACK AWAY FROM ITS EXPO COMMITMENT THE ALLEGATIONS AGAINST AMWAY AND SUNRIDER ARE UNCLEAR IN A STATEMENT LAST WEEK THE KOREAN PROSECUTOR SAID THE TWO COMPANIES' SALES STRATEGIES VIOLATE THE COUNTRY'S DOORTODOOR SALES ACT WHICH WAS REVISED TWO YEARS AGO TO ADDRESS THE PROLIFERATION OF FOREIGN DIRECTSALES NETWORKS THERE THE PROSECUTOR SAID THE COMPANIES SELL PRODUCTS AT ALLEGEDLY INFLATED PRICES TO MAKE LARGE PROFITS IN A SHORT PERIOD AND THEN LEAVE KOREA THE STATEMENT ALSO SUGGESTED THAT THE BURGEONING DOORTODOOR SALES TRADE IS THREATENING KOREA'S WORK ETHIC PEOPLE ARE MOVING AWAY FROM PRODUCTIONRELATED JOBS IT SAID IF THESE DIRECT SALES COMPANIES AREN'T KEPT UNDER CONTROL IT WILL GREATLY AFFECT DOMESTIC INDUSTRIES AND RESULT IN SERIOUS SOCIAL DISORDER AMWAY OFFICIALS SAID THE COMPANY'S COMMISSIONBASED SALES NETWORKS ARE COMPATIBLE WITH KOREAN LAW AMWAY SAID IT TYPICALLY TRAINS ITS INDEPENDENT SALES AGENTS IN SEMINARS WITH COMPANY REPRESENTATIVES THEN LEAVES THEM TO ORGANIZE LOCAL DISTRIBUTORS SINCE IT BEGAN OPERATIONS IN KOREA IN 1988 AMWAY HAS DEVELOPED A NETWORK OF 5000 PRIMARY AGENTS AND 25000 PARTTIME DISTRIBUTORS MR EGGLESTON SAID AMWAY'S SALES TACTICS DIDN'T THREATEN OTHER KOREAN INDUSTRIES THE CONCEPT OF THE BUSINESS IS THAT IT'S A MODEST WAY TO SUPPLEMENT EXISTING INCOME HE SAID WE ACTUALLY ENCOURAGE PEOPLE TO KEEP THEIR REGULAR JOBS AND BUILD UP SALES GRADUALLY THE PROSECUTION'S INVESTIGATION COULD POSE AN AWKWARD COUNTERPOINT TO THE US KOREAN AMITY THIS WEEKEND'S SUMMIT MEETING IS INTENDED TO CONVEY SENSITIVE TO ITS REPUTATION AS A COUNTRY HOSTILE TO FOREIGN INVESTMENT THE KIM GOVERNMENT HAS LAUNCHED A CAMPAIGN TO REDUCE RED TAPE AND NONTARIFF BARRIERS THE US PAVILION WAS FINANCED BY PRIVATE FUNDS CONTRIBUTIONS WERE SCARCE PARTLY BECAUSE OF STRAINED RELATIONS BETWEEN THE US BUSINESS COMMUNITY AND KOREA'S UNWIELDY FINANCIAL BUREAUCRACY IN DECEMBER AMWAY ARRANGED A FUNDRAISING DRIVE THAT WITH ITS OWN CONTRIBUTION OF 1 MILLION GENERATED 25 MILLION TO FINANCE THE PAVILION NOBODY ELSE WAS CLAMORING TO PICK UP THE BID SAID WILLIAM OBERLIN VICE PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE IN KOREA IF AMWAY HADN'T SPOKEN UP IT WOULD HAVE GOTTEN AWAY FROM US THREE KOREABASED REPRESENTATIVES FOR SUNRIDER INTERNATIONAL A US HOMEPRODUCTS RETAILER HAVE BEEN HELD IN THE SEOUL SOUTHERN PROSECUTORS' DETENTION CENTER SINCE JUNE 29 ON SUSPICION OF VIOLATING KOREA'S DIRECTSALES LAW AN ARTICLE THURSDAY INCORRECTLY STATED THAT THEY HAD BEEN FREED TWO EMPLOYEES OF AMWAY CORP WHO WERE JAILED ON JUNE 30 ON SIMILAR CHARGES WERE RELEASED EIGHT DAYS LATER 9307080137 930708 INTERNATIONAL DUTCH RETAIL SALES DECLINE 15 AMSTERDAM RETAIL SALES IN THE NETHERLANDS FELL A REAL OR PRICE ADJUSTED 15 IN MAY FROM A YEAR EARLIER PART OF THE DECLINE WAS ATTRIBUTED TO THE FACT THAT THERE WAS ONE FEWER SHOPPING DAY THAN IN MAY 1992 WHEN NOT CORRECTED FOR PRICE SWINGS SALES IN MAY EASED 13 THE DATA SHOW THE MAY DECLINE REVERSED A 2 PRICEADJUSTED INCREASE IN APRIL AND A 28 NOMINAL RISE DUTCH RETAIL SALES FIGURES HAVE BEEN FLUCTUATING WIDELY FROM MONTH TO MONTH THIS YEAR 9307080136 930708 MYLAN TO POST HIGHER NET PITTSBURGH MYLAN LABORATORIES INC SAID PRELIMINARY FIGURES FOR ITS FIRST QUARTER ENDED JUNE 30 INDICATE AT LEAST A 35 INCREASE IN EARNINGS IN THE YEARAGO PERIOD ADJUSTED FOR A 2FOR1 STOCK SPLIT LAST AUGUST MYLAN HAD NET INCOME OF 114 MILLION OR 14 CENTS A SHARE ON SALES OF 388 MILLION MYLAN WHICH MAKES AND MARKETS GENERIC DRUGS ADDED THAT IT EXPECTS ANOTHER RECORD YEAR 9307080135 930708 GALIARDO SENTENCED TO PRISON NEWARK NJ A FEDERAL COURT SENTENCED A FORMER DIRECTOR AND SHAREHOLDER OF NOWDEFUNCT BROKERAGE FIRM FD ROBERTS SECURITIES INC FOR INCOME TAX EVASION THE INTERNAL REVENUE SERVICE SAID ENRICO GALIARDO WHO WAS SENTENCED TO 10 MONTHS IN PRISON AND THREE YEARS' PROBATION PLEADED GUILTY FOR FAILING TO REPORT 85000 IN INCOME FOR 1987 AND 105000 IN 1988 FROM THE FIRM WHICH WAS BASED IN PARAMUS NJ MR GALIARDO NOW LIVES IN DAYTONA BEACH FLA 9307080134 930708 BUSINESS BRIEF ADIENCE INC PREPACKAGED CHAPTER 11 PLAN FOR RESTRUCTURING IS ENDED ADIENCE INC PITTSBURGH SAID THAT ON JUNE 30 IT COMPLETED ITS PREPACKAGED CHAPTER 11 BANKRUPTCYLAW PLAN TO RESTRUCTURE ITS DEBT AND OBTAINED A 12 MILLION CREDIT LINE FROM CORESTATES FINANCIAL CORP'S CONGRESS FINANCIAL CORP THE PLAN CALLS FOR THE EXCHANGE OF 66 MILLION OF THE COMPANY'S 15 SENIOR SUBORDINATED RESET NOTES FOR 45 MILLION OF NEW 11 NOTES AND COMMON STOCK REPRESENTING 55 OF ADIENCE'S EQUITY THE PLAN ENABLES THE COMPANY TO ACT WITHOUT FURTHER COURT SUPERVISION ADIENCE MAKES REFRACTOR DEVICES FOR THE METALS AND GLASS INDUSTRIES AND OWNS 80 OF INFORMATION DISPLAY TECHNOLOGY INC WHICH MAKES WRITING AND PROJECTION SURFACES INFORMATION DISPLAY TECHNOLOGY WASN'T INCLUDED IN THE BANKRUPTCYPROTECTION FILING 9307080133 930708 KLM TRAFFIC IS UP AMSTERDAM KLM ROYAL DUTCH AIRLINES SAID ITS UNDERLYING BUSINESS VOLUMES CONTINUED RISING BROADLY IN JUNE FROM A YEAR EARLIER THE DUTCH FLAG CARRIER WHICH IS 382 STATEOWNED SAID TOTAL AIRLINE TRAFFIC ROSE 15 TO 5313 MILLION TON KILOMETERS LAST MONTH FROM THE 4603 MILLION POSTED LAST YEAR OF THOSE AMOUNTS PASSENGER HAULAGE WAS UP 17 TO 3059 MILLION TON KILOMETERS WHILE CARGO AND POST CARRIED WAS 13 HIGHER TO 2254 MILLION TON KILOMETERS A KILOMETER EQUALS 062 MILE THE PASSENGER KILOMETER TOTAL IN JUNE WAS 327 BILLION UP 18 FROM 278 BILLION A YEAR EARLIER THOSE FIGURES REPRESENT THE NUMBER OF PASSENGERS MULTIPLIED BY THE NUMBER OF KILOMETERS FLOWN BY THE AIRLINE 9307080132 930708 WHO'S NEWS SEALRIGHT CO SEALRIGHT CO OVERLAND PARK KAN ARTHUR R SCHULZE 62 YEARS OLD AND RECENTLY RETIRED FROM THE POST OF VICE CHAIRMAN OF GENERAL MILLS INC WAS ELECTED A DIRECTOR OF THIS MAKER OF PACKAGING PRODUCTS EXPANDING BOARD MEMBERSHIP TO 10 9307080131 930708 SYMS TO OPEN SIX MORE STORES NEW YORK OFFPRICE APPAREL RETAILER SYMS CORP SAID IT WILL OPEN SIX NEW STORES WITHIN THE NEXT YEAR THE COMPANY PLANS TO OPEN TWO STORES THIS YEAR IN CHICAGO AND STORES IN PHILADELPHIA DALE CITY VA AND STERLING HEIGHTS MICH A SIXTH STORE WILL BE OPENED IN EARLY 1994 IN FAIRFIELD CONN THE COMPANY CURRENTLY HAS 29 STORES 9307080130 930708 MARKETSCAN HOLD THE MUSTARD HOTDOG SALES DROP BY JACK REJTMAN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICA'S LOVE AFFAIR WITH THE HOT DOG ONCE SIZZLING SEEMS TO BE GROWING COLD HOTDOG SALES HAVE DECLINED IN THE PAST YEAR AT THE SAME TIME EFFORTS TO TURN FRANKFURTERS INTO HEALTHIER FARE HAVE LARGELY FLOPPED MOST IMPORTANTLY DEMOGRAPHIC TRENDS ARE WORKING AGAINST THE WIENER IT IS MOST POPULAR WITH YOUNG PEOPLE BUT THERE ARE PROPORTIONALLY FEWER AND FEWER KIDS AND TEENS IN THE US EVEN AT NEW YORK'S SHEA STADIUM HOME OF THE NEW YORK METS THE HOT DOG HAS BEEN IN A SLIDE LONGER THAN THE TEAM IN THE PAST FIVE OR SIX YEARS DOG DEMAND HAS DROPPED ABOUT 35 CAUGHT IN A SQUEEZE PLAY BETWEEN HEALTHIER FOODS SUCH AS CHICKEN AND ALLNATURAL PIZZA TO BE FRANK PRICE CUTS LAST YEAR SPURRED BY ROCKBOTTOM PRICING FOR POULTRY PORK AND BEEF AT THE COMMODITY LEVEL WERE EXPECTED TO HELP BOOST UNIT SALES OF HOT DOGS YET SALES MEASURED IN POUNDS DECLINED 34 IN SUPERMARKETS IN THE 52 WEEKS ENDED MAY 23 ACCORDING TO THE INFOSCAN SERVICE OF INFORMATION RESOURCES INC DOLLAR SALES WERE DOWN 53 HEADING INTO SUMMER THE HOT DOG FAILED TO MAKE A COMEBACK IN THE 12 WEEKS ENDED IN LATE MAY THE DECLINE IN DOLLAR SALES HAD ACCELERATED TO 63 AND THE DROP IN UNIT VOLUME WAS MORE THAN DOUBLE AT 79 SALES OF CONAGRA INC'S ARMOUR AND ARMOUR STAR FRANKS HAD THE STEEPEST DECLINE PLUNGING ALMOST 35 AND 29 RESPECTIVELY IN THE 52WEEK PERIOD SARA LEE CORP'S BRYAN BRAND THE FOURTHLARGEST BRAND POSTED A DECLINE OF MORE THAN 6 THE NO 1 OSCAR MAYER LINE ALSO FELT THE HEAT REGULAR OSCAR MAYER WIENERS MARKETED BY PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT HAD A 63 DECLINE IN REVENUE WITH A BUNLENGTH VERSION DROPPING 128 CONAGRA OFFICIALS WON'T DISCUSS THE CHINK IN ARMOUR'S HOTDOG BUSINESS AT BRYAN FOODS INC OFFICIALS DIDN'T RETURN CALLS SEEKING COMMENT EXPLAINING AN OVERALL DROP IN UNIT VOLUME AT OSCAR MAYER A SPOKESMAN SAYS THE COMPANY KILLED A LESSER BRAND MACHIAEH AND ELIMINATED SOME JUMBO PACKAGES IN THE OSCAR MAYER LINE EVEN HOT DOGS MARKETED AS MORE HEALTHFUL HAVE LEFT CONSUMERS COLD IF PEOPLE ARE GOING TO INDULGE THEY WANT A FULLFLAVOR FRANK BEEFBASED FRANKS IN LOWFAT AND LOWSODIUM VERSIONS NEVER HAVE SOLD WELL AND MORE RECENTLY DOGS CONTAINING CHICKEN OR TURKEY HAVE FALTERED IN THE PAST YEAR SALES OF POULTRYBASED HOT DOGS HAVE FALLEN 18 IN VOLUME TERMS ACCORDING TO INFORMATION RESOURCES TURKEY DOGS SOLD UNDER THE LOUIS RICH BRAND HAD A DOLLAR SALES DECLINE OF MORE THAN 18 AND SALES OF HYGRADE FOOD PRODUCTS CORP'S GRILLMASTER CHICKEN FRANKS DROPPED NEARLY 17 STILL NOT EVERYONE IS GETTING BURNED WITH POULTRY PRODUCTS CONAGRA'S TURKEYBASED HEALTHY CHOICE LINE BOASTED AN EIGHTFOLD INCREASE IN REVENUE IN THE PAST YEAR THE HARD TIMES FOR HEALTHFUL DOGS MAY BE PARTLY BECAUSE CONSUMERS HAVE SEEN THROUGH THE HYPE POULTRY DOGS AREN'T ALL THAT SUPERIOR NUTRITIONALLY GIVEN THE CHOICE OF CHICKEN OR TURKEY VS BEEF DOGS FOR EXAMPLE THE REAL DIFFERENCE IS TRIVIAL IN TERMS OF THE NUTRIENT COMPOSITION SAYS JOE SPENCE DIRECTOR AT THE US DEPARTMENT OF AGRICULTURE'S BELTSVILLE HUMAN NUTRITION RESEARCH CENTER IN MARYLAND YOU REALLY HAVE TO LOOK AT WHAT'S ON THE LABEL AND THE FAT CONTENT ON AVERAGE A BEEF HOT DOG HAS ABOUT FOUR GRAMS MORE FAT THAN A POULTRY WIENER THESE DAYS EVEN AMID A HOTDOG DECLINE AMERICANS STILL CONSUME MORE THAN 20 BILLION DOGS A YEAR OR ABOUT 80 PER PERSON ANNUALLY ACCORDING TO ESTIMATES IN THE INDUSTRY ALTHOUGH IT WAS NAMED IN NEW YORK THE HOT DOG IS KING IN THE SOUTH WHERE SUPERMARKET PURCHASES OF THE PRODUCT ARE AS MUCH AS 40 HIGHER THAN THE NATIONAL AVERAGE ACCORDING TO INFOSCAN DATA ALL OF THE TOP 10 RETAIL MARKETS ARE IN SOUTHERN STATES INCLUDING MISSISSIPPI ARKANSAS AND ALABAMA THE HOT DOG IS A LOWLY CREATURE IN THE WEST IN SEATTLE FOR EXAMPLE DOG SALES RUN 34 BELOW THE NATIONAL AVERAGE THE PREFERRED DOG PARTICULARLY IN THE NORTHEAST IS STILL THE BIG BEEF FRANK REALLY WHEN PEOPLE COME OUT TO THE BALLPARK THEY'RE NOT THAT CONSCIOUS OF THEIR WAISTLINE SAYS KENNETH SMITH A CONCESSIONS MANAGER AT SHEA STADIUM AT A RECENT PAUL MCCARTNEY CONCERT IN ST LOUIS THE PERFORMER INSISTED THAT VEGETARIAN HOT DOGS BE SERVED AND MADE AVAILABLE TO THE MORE THAN 46000 FANS WHO ATTENDED FEWER THAN 100 TOFU FRANKS WERE SOLD IF PEOPLE ARE GOING TO HAVE A HOT DOG THEY'RE GOING TO ENJOY IT SAYS BOYD ADELMAN EXECUTIVE VICE PRESIDENT OF MARATHON ENTERPRISES INC THE COMPANY THAT MAKES THE SABRETT BRAND THE BACKTOBEEF MOTIF IS SUPPORTED BY SUPERMARKET SALES BALL PARK FRANKS THE ONES THAT PLUMP WHEN YOU COOK 'EM SWELLED WITH A 6 INCREASE IN SALES AND GAINED ONE POINT IN MARKET SHARE THE BRAND MARKETED BY SARA LEE'S HYGRADE UNIT HAS USED BASKETBALL SUPERSTAR MICHAEL JORDAN IN RECENT TV SPOTS HE IS SEEN SOARING OVER THE COURT TO GRAB A DOG OFF THE SCOREBOARD DISPLAY REGIONAL FAVORITE NATHAN'S FAMOUS INC POSTED ROBUST REVENUE GROWTH OF 14 WHILE SABRETT MORE THAN TRIPLED ITS SALES AND BOOSTED ITS MARKET SHARE 03 PERCENTAGE POINT PICKING UP ON THE TREND OSCAR MAYER THIS SPRING LAUNCHED ITS OWN VERSION OF THE PREMIUM BEEF FRANK THE BIG & JUICY ITS PITCHMAN IS NONE OTHER THAN BOXING'S BEEFY BRUISER GEORGE FOREMAN AND ITS TARGET AUDIENCE IS ADULTS THAT IS A MARKED SHIFT FOR OSCAR MAYER WHICH MADE CUTESY KIDS MUNCHING WIENERS AND SINGING OFFKEY INTO A COMMERCIAL CLASSIC OTHER DOG MAKERS MAY NEED TO FOLLOW OSCAR MAYER'S TUNE FOR YEARS THE 15 BILLION RETAIL HOTDOG INDUSTRY HAS BEEN DRIVEN BY KIDS BUT AS THE NATION CONTINUES TO AGE AND AS FAMILY SIZE SHRINKS HOTDOG COMPANIES MUST BROADEN THEIR PITCH SAYS MARGARET RILEY VICE PRESIDENT OF MARKETING AT HYGRADE HER COMPANY IS WEIGHING WHETHER TO LAUNCH SPICIER PRODUCTS THAT MIGHT APPEAL TO ADULT TASTE BUDS AND IS EXPERIMENTING WITH SMALLER PACKAGE SIZES THAT SPORT EASIERTOREAD LABELS THE CATEGORY IS HARD TO GROW AS A WHOLE MS RILEY SAYS AND AS WE SEE A SHIFT TO FEWER CHILDREN IN A HOUSEHOLD AND SMALLER HOUSEHOLDS WE'LL SEE LESS HOTDOG CONSUMPTION 9307080129 930708 WHO'S NEWS MAY DEPARTMENT STORES CO MAY DEPARTMENT STORES CO ST LOUIS MARY ANN JANSSEN 41 YEARS OLD WAS NAMED VICE PRESIDENT CAPITAL PLANNING AND ANALYSIS OF THIS RETAILER MS JANSSEN FILLS A VACANCY LEFT BY STEPHEN J HINDERBERGER WHO HAS BEEN NAMED VICE PRESIDENT PLANNING AND ANALYSIS 9307080128 930708 BUSINESS BRIEF BRIDGESTONE CORP JAPANESE TIRE MAKER TO BUILD 110 MILLION THAILAND PLANT BRIDGESTONE CORP SAID IT WILL CONSTRUCT A 12 BILLION YEN 110 MILLION TIRE PLANT IN THAILAND WITH ITS THAI SUBSIDIARY THAI BRIDGESTONE LTD BRIDGESTONE A MAJOR TIRE MANUFACTURER BASED IN TOKYO SAID THE NEW PLANT'S PRODUCTION CAPACITY WILL BE ABOUT 15 RUBBER TONS A DAY AND THE PLANT WILL EMPLOY ABOUT 230 NEW EMPLOYEES CONSTRUCTION IS SCHEDULED TO BEGIN BY THE END OF THIS YEAR AND IS EXPECTED TO BE COMPLETED BY THE MIDDLE OF 1995 SEPARATELY BRIDGESTONE ANNOUNCED THAT ONE OF ITS TIRES THE DUELER A/T 610 HAS BEEN SELECTED AS ONLINE ORIGINAL EQUIPMENT FOR THE MERCEDES 500 GE V8 MARKING THE FIRST TIME BRIDGESTONE'S TIRE HAS BEEN CHOSEN BY MERCEDES BENZ 9307080127 930708 BUSINESS BRIEF CYPRUS MINERALS CO MINING CONCERN WILL CUT 220 JOBS AT ARIZONA MINE CYPRUS MINERALS CO SAID IT WILL REDUCE ITS WORK FORCE AT ITS SIERRITA COPPER MINE SOUTH OF TUCSON ARIZ BY ABOUT 220 EMPLOYEES OR ABOUT ONEQUARTER THE DENVER MINING COMPANY SAID THE MOVE WILL SAVE ABOUT 8 MILLION A YEAR IN COSTS AT THE MINE AND IS PART OF A COSTREDUCTION PROGRAM BEGUN EARLY IN 1992 SINCE THAT PROGRAM WAS STARTED CYPRUS HAS REDUCED ANNUAL COSTS IN CORPORATE OVERHEAD AND IN ITS COAL AND COPPER BUSINESSES BY ABOUT 77 MILLION A COMPANY SPOKESMAN SAID CYPRUS ALSO SAID IT WILL MODERNIZE THE SIERRITA MINE'S TRUCK FLEET COMPUTERIZE SOME OPERATIONS AND RESTRUCTURE MINE MAINTENANCE WORK TO FURTHER REDUCE COSTS 9307080126 930708 PEPPERAND SALT CHAPTER 11 IS BEST DEFINED AS LIVING IN THE COLLAPSE OF LUXURY S&L BAILOUT DEBT WARMED OVER 9307080125 930708 PHOENIX RESOURCES TEST WELL OKLAHOMA CITY PHOENIX RESOURCES COS SAID AN EGYPTIAN TEST WELL TAREK NO 2 PRODUCED 193 MILLION CUBIC FEET OF NATURAL GAS A DAY PLUS 1750 BARRELS OF CONDENSATE DAILY IN THE LOWER CRETACEOUS ALAM EL BUEIB ZONE THE OIL AND GAS COMPANY WHICH HOLDS A 40 INTEREST IN THE FIELD WHICH IS OPERATED BY REPSOL EXPLORACION EGIPTO SA SAID THE WELL ALSO PRODUCED SMALLER AMOUNTS OF GAS IN TWO DEEPER ZONES SPECIFICALLY 48 MILLION CUBIC FEET OF NATURAL GAS A DAY AND 19 MILLION CUBIC FEET OF GAS A DAY THE TEST WELL LOCATED 50 MILES SOUTH OF THE MEDITERRANEAN COAST AND 115 MILES WEST OF ALEXANDRIA IS PART OF A PROJECT TO DETERMINE WHETHER IT WOULD PAY TO BUILD A GAS PIPELINE INTO THE DESERT A PHOENIX SPOKESMAN SAID 9307080124 930708 POLAROID'S SINGLEUSE CAMERA CAMBRIDGE MASS POLAROID CORP IN AN ATTEMPT TO TAP WHAT IT CALLS THE FASTESTGROWING SEGMENT OF THE CONSUMER FILM BUSINESS INTRODUCED ITS FIRST SINGLEUSE CAMERA CALLED SIDEKICK THE CAMERA WHICH IS AVAILABLE IN TWO MODELS IS PRELOADED WITH A 24EXPOSURE FILM ROLL TO DEVELOP THE FILM USERS DROP OFF THE ENTIRE CAMERA WHICH RETAILS FOR 6 TO 11 POLAROID A CAMERA AND FILM CONCERN ALSO INTRODUCED A COMPACT 35MM CAMERA CALLED HIGH DEFINITION THE PALMSIZED HIGH DEFINITION CAMERA WILL RETAIL FOR UNDER 90 POLAROID SAID 9307080122 930708 BUSINESS BRIEF WESTMORELAND COAL CO FIRM REACHES NEW CONTRACT WITH UNITED MINE WORKERS WESTMORELAND COAL CO SAID IT REACHED A NEW CONTRACT WITH 900 EMPLOYEES REPRESENTED BY THE UNITED MINE WORKERS WHO ARE IN THEIR NINTH WEEK OF SELECTIVE STRIKING WESTMORELAND WHICH IS BASED IN PHILADELPHIA IS THE FOURTH AND FINAL MEMBER OF THE INDEPENDENT BITUMINOUS COAL BARGAINING ALLIANCE TO REACH A PACT WITH THE UNION THE AGREEMENT PROTECTS WESTMORELAND FROM THE STRIKE WHICH IS TARGETING COMPANIES OUTSIDE THE ALLIANCE THE OTHER THREE MEMBERS OF THE GROUP DRUMMOND CO WALTER INDUSTRIES INC'S JIM WALTER RESOURCES INC UNIT AND USX CORP'S US STEEL MINING CO UNIT SETTLED WITH THE UNION LAST WEEK THERE HAS BEEN NO CHANGE IN NEGOTIATIONS WITH THE BITUMINOUS COAL BARGAINING ALLIANCE THE MAJOR BARGAINING GROUP WHOSE MEMBERS THE UNION IS SELECTIVELY TARGETING IN ITS STRIKE THE STRIKE BEGAN MAY 10 AND INVOLVES 14000 WORKERS 9307080121 930708 WORLD MARKETS STOCK PRICES DECLINE IN TOKYO FINISH MIXED IN LONDON BUT RISE TO A '93 HIGH IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP SHARE PRICES IN TOKYO DECLINED WEDNESDAY AS MOST INVESTORS WERE DISTRACTED BY THE INDUSTRIALIZED DEMOCRACIES' SUMMIT IN JAPAN LONDON STOCKS ENDED WITH A MIXED SHOWING AFTER RESPONDING TO WALL STREET'S UPS AND DOWNS BUT FRANKFURT SHARES ROSE SHARPLY TO A HIGH FOR THIS YEAR WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10508 UP 025 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND THE ASIA/PACIFIC REGION AND A DROP IN EUROPEAN MARKETS BIOTECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 6173 UP 111 OR 18 WITH CENTOCOR OF THE US POSTING A 31 GAIN IN ITS LOCAL CURRENCY AIR FREIGHT STOCKS TRAILED AT 9903 DOWN 232 OR 23 WITH AIRBORNE FREIGHT OF THE US SLIDING 14 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 20672 POINTS TUESDAY DROPPED 10911 TO 1972067 ON THURSDAY THE NIKKEI ROSE 6401 POINTS TO CLOSE THE MORNING SESSION AT 1978468 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES UP FROM THE PALTRY 180 MILLION SHARES A DAY EARLIER RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 578365 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FIRMED 748 POINTS TUESDAY SOFTENED 852 TO 158438 THE RISE IN TOKYO'S VOLUME RESULTED LARGELY FROM SOCALLED CONGRATULATORY ORDERS PLACED THROUGH NIKKO SECURITIES CO IN OBSERVANCE OF ITS 75TH ANNIVERSARY ORDERS PLACED WITH THE FIRM ACCOUNTED FOR 23 OF THE MARKET'S TURNOVER COMPARED WITH BETWEEN 5 AND 6 ON A TYPICAL DAY TOKYO PRICES SKIDDED IN THE FIRST 30 MINUTES OF TRADING RECOVERED MODERATELY FOR THE REST OF THE MORNING SESSION THEN MOVED DOWN THROUGHOUT THE AFTERNOON THE WEAKNESS AMID A LACK OF INVESTMENT INCENTIVES FOLLOWED A POOR SHOWING TUESDAY ON WALL STREET ARBITRAGERS AND INVESTMENT TRUST FUNDS LED THE SELLING IN TECHNICAL INDEXLINKED ACTIVITY INVESTORS HAD HIGH HOPES BUT LOW EXPECTATIONS FOR THE SUMMIT OF LEADERS OF THE GROUP OF SEVEN INDUSTRIAL COUNTRIES AND CONTINUED TO FOCUS INSTEAD ON HOPES FOR A JAPANESE RATE REDUCTION TO SPUR THE ECONOMY HEAVY PROFITTAKING HIT FINANCIAL AND OTHER ISSUES SENSITIVE TO INTEREST RATES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED UP 02 POINT TO 28483 THE FT 30STOCK INDEX SLIPPED 09 POINT TO 22341 VOLUME WAS 5862 MILLION SHARES COMPARED WITH 5545 MILLION SHARES A DAY EARLIER THE LONDON MARKET OPENED ON A BEARISH NOTE TAKING A CUE FROM NEW YORK STOCKS' BIG DROP TUESDAY AND PRICES IN THE FIRST HOUR SKIDDED TO PUSH THE 100STOCK INDEX TO ITS INTRADAY LOW OF 28292 BUT WHEN WALL STREET OPENED YESTERDAY WITH A GOOD RISE LONDON INVESTORS BELIEVED THEIR MARKET'S EARLIER REACTION WAS OVERDONE AND BARGAINHUNTERS EMERGED LIFTING PRICES FROM LOWS CONSUMER STOCKS WERE HURT BY DISAPPOINTING EARNINGS IN THE RETAILING SECTOR WHICH SPARKED FEARS THAT BRITAIN'S ECONOMIC RECOVERY IS FALTERING IN FRANKFURT THE DAX 30STOCK INDEX ADVANCED 1889 POINTS OR 11 TO 171976 ALSO THE INTRADAY PEAK SURPASSING THE PREVIOUS 1993 CLOSING HIGH OF 171740 SET MARCH 11 THE DAX MET RESISTANCE AT 1720 A PERCEIVED HURDLE FOR SEVERAL WEEKS THOUGH LITTLE CORPORATE NEWS EMERGED TO INSPIRE THE MARKET VOLUME WAS THE HEAVIEST IN WEEKS AND STOCKS ROSE ACROSS THE BOARD PARTLY ON CONTINUING RUMORS OF MORE GERMAN INTERESTRATE CUTS TO COME PARIS SHARE PRICES RAN WITH LOSSES IN MORNING TRADING THEN REBOUNDED WITH HELP FROM THE EARLY RALLY ON WALL STREET AND FAVORABLE TECHNICAL SIGNALS AS ARBITRAGERS PLAYED A ROLE AMSTERDAM PRICES ALSO BEGAN WEAKLY AND SEESAWED TO END MIXED THOUGH WITH A FIRM TONE ON OPTIMISM ABOUT CHANCES FOR SUCCESSFUL COMPLETION OF WORLD TRADELIBERALIZATION TALKS AND LOWER INTEREST RATES MILAN SHARES ROSE ON GAINS IN THE AUTO SECTOR REVERSING INITIALLY NEGATIVE SENTIMENT IN STOCKHOLM AFTER A SOFT OPENING EQUITIES RALLIED TO FINISH HIGHER PROPELLED BY LOWER SWEDISH INTEREST RATES AND HEAVY DEMAND FOR SOME BLUE CHIPS ZURICH SHARES FELL AFTER PROFITTAKING WIPED OUT EARLIER GAINS IN SYDNEY A JUMP IN THE PRICE OF GOLD BOOSTED SENTIMENT IN THE STOCK MARKET PULLING EQUITIES HIGHER ACROSS THE BOARD SINGAPORE SHARES DECLINED AFTER A LATE SELLOFF AS THE MARKET'S CONSOLIDATION CONTINUED HONG KONG PRICES FELL AS MIDDAY GAINS WERE ERASED IN SEESAW TRADING IN TAIPEI FOLLOWING A SURGE THE PREVIOUS DAY STOCKS FELL ON PROFITTAKING MANILA SHARES ROSE THROUGH A PERCEIVED INDEX RESISTANCE LEVEL AND FINISHED WITH GAINS AMONG CORPORATE DEVELOPMENTS IN LONDON DIXONS GROUP SANK 15 PENCE OR 71 TO 195 PENCE 293 THE RETAILER'S PRETAX PROFIT FOR THE YEAR ENDED MAY 1 FELL 33 TO 335 MILLION 504 MILLION FROM A YEAR EARLIER AFTER A 432 MILLION SPECIAL ITEM MAINLY FOR RESTRUCTURING THE COMPANY'S SILO ELECTRONICS CHAIN IN THE US THE RESULTS DIDN'T MEET EXPECTATIONS OF ANALYSTS WHO ALSO HAD ESTIMATED A GREATER BOOST IN THE DIVIDEND WHICH WAS INCREASED 33 TO 62 PENCE A SHARE IN FRANKFURT LUFTHANSA ROSE 40 PFENNIGS TO 11740 MARKS 6889 CITING AUSTERITY MEASURES THE AIRLINE TOLD THE ANNUAL MEETING THAT SECONDQUARTER PARENTCOMPANY OPERATIONS BROKE EVEN FOLLOWING A FIRSTQUARTER LOSS OF 245 MILLION MARKS 1438 MILLION LUFTHANSA HAS WARNED REPEATEDLY THAT IT DOESN'T EXPECT TO RETURN TO PROFITABILITY UNTIL NEXT YEAR IN 1992 THE CARRIER HAD A CONSOLIDATED NET LOSS OF 393 MILLION MARKS IN PARIS THOMSONCSF LOST 44 FRENCH FRANCS OR 26 TO 1681 FRANCS 2916 FOLLOWING INDICATIONS BY FRENCH INDUSTRY MINISTER GERARD LONGUET THAT THE DEFENSE ELECTRONICS GROUP WOULDN'T BE SPUN OFF FROM THOMSON SA FOR PRIVATIZATION IT APPEARED THAT THOMSONCSF WOULD BE TIED TO THE UNPROFITABLE THOMSON CONSUMER ELECTRONICS BEFORE A SELLOFF THOUGH A DECISION HADN'T BEEN MADE THOMSONCSF ALSO SAID IT AND ITS UNIONS ESTIMATED A STAFF SURPLUS OF 1600 WORKERS THROUGH THE END OF NEXT YEAR INDICATING LAYOFFS MAY COME IN SEOUL HYUNDAI MOTOR ROSE 300 WON TO 28300 WON 3518 EVEN THOUGH THE BIG AUTO MAKER AND SIX OTHER SUBSIDIARIES OF THE GIANT HYUNDAI GROUP WERE HIT BY A STRIKE BY 60000 WORKERS THE STOCK GAINED AFTER THE GROUP PROMISED A FLEXIBLE STANCE IN WAGE NEGOTIATIONS GIVING RISE TO HOPES FOR A QUICK RESOLUTION OF THE LABOR DISPUTE THE GOVERNMENT SOUGHT TO ARREST UNION LEADERS AND LABOR ACTIVISTS 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 9307080120 930708 BUSINESS BRIEF CORNING INC TENDER OFFER AT 23 APIECE TO START FOR DAMON SHARES CORNING INC SAID IT WILL BEGIN ITS TENDER OFFER FOR ALL COMMON SHARES OUTSTANDING OF DAMON CORP AT 23 EACH THE TENDER OFFER BY THE CORNING NY COMPANY IS CONDITIONED ON A MINIMUM OF 89 MILLION DAMON SHARES OR APPROXIMATELY 51 OF THE SHARES OUTSTANDING ON A FULLY DILUTED BASIS CORNING SAID IT VALUED THE DEAL AT 575 MILLION FOR A TOTAL 16 MILLION SHARES ANY DAMON SHARES NOT ACQUIRED WILL BE EXCHANGED AT THE OFFER PRICE IN A FOLLOWING CASH MERGER CORNING WILL ASSUME 164 MILLION IN LONGTERM DEBT AND 43 MILLION IN OTHER FEES AND COSTS THE AGREEMENT EXPANDS CORNING'S BUSINESS IN CLINICAL LABORATORIES THE WITHDRAWAL AND EXPIRATION DATE FOR THE TENDER OFFER IS AUG 3 9307080119 930708 FINANCING BUSINESS BOMBARDIER INC BOMBARDIER INC SAID IT PLANS TO ISSUE 150 MILLION CANADIAN DOLLARS US117 MILLION OF UNSECURED DEBENTURES IN CANADA THE DEBENTURES WHICH WILL MATURE JULY 28 2003 ARE TO BEAR ANNUAL INTEREST OF 83 AND WILL BE ISSUED AT 9955 TO YIELD 8367 THE MONTREAL MAKER OF TRANSPORTATION EQUIPMENT SAID IT WILL USE THE PROCEEDS TO REDUCE SHORTTERM BORROWINGS UNDERWRITERS ARE LED BY SCOTIAMCLEOD INC 9307080118 930708 GENRAD NAMES LYONS CHIEF CONCORD MASS GENRAD INC AS EXPECTED NAMED JAMES F LYONS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR MR LYONS 58 YEARS OLD SUCCEEDS ROBERT E ANDERSON 52 AS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR ANDERSON WILL REMAIN CHAIRMAN MR LYONS TAKES THE BOARD SEAT VACATED BY MICHAEL SCOTTMORTON WHO RESIGNED IN MARCH MR LYONS WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HARRY GRAY ASSOCIATES A MANAGEMENT CONSULTING FIRM IN FARMINGTON CONN 9307080117 930708 WHO'S NEWS ITT CORP ITT CORP NEW YORK KLAUS G LEDERER AND THOMAS K WALKER WERE BOTH NAMED CORPORATE VICE PRESIDENTS AT THE DIVERSIFIED CONCERN WITH INTERESTS IN AUTOMOTIVE FINANCIAL SERVICES INSURANCE HOTELS TIMBER AND DEFENSE PRODUCTS DR LEDERER 45 YEARS OLD IS PRESIDENT OF ITT AUTOMOTIVE EUROPE FRANKFURT HE JOINED ITT LAST YEAR AS A SENIOR VICE PRESIDENT OF ITT AUTOMOTIVE MR WALKER 53 IS PRESIDENT OF ITT AUTOMOTIVE NORTH AMERICA AUBURN HILLS MICH HE JOINED ITT LAST YEAR AS PRESIDENT OF ITT AUTOMOTIVE'S MECHANICAL SYSTEMS & COMPONENTS GROUP 9307080116 930708 LEGG MASON UNIT BUYS PORTFOLIO BALTIMORE LEGG MASON INC SAID ITS MORTGAGE BANKING UNIT LATIMER & BUCK INC ACQUIRED THE 830 MILLION COMMERCIAL LOAN PORTFOLIO OF BANCBOSTON MORTGAGE CORP A BANK OF BOSTON CORP UNIT TERMS WEREN'T DISCLOSED LEGG MASON A SECURITIES FIRM SAID LATIMER & BUCK'S FLORIDA UNIT LATIMER & BUCK OF FLORIDA INC WILL SERVICE THE PORTFOLIO 9307080115 930708 INTERNATIONAL GOLD BUST STRAINS SOUTH AFRICA TRANSITION THE POOR FIND LITTLE COMFORT IN PROMISE OF DEMOCRACY BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL MANDELA PARK SOUTH AFRICA EVEN BEFORE THE ROOSTER AT THE GARBAGE HEAP WELCOMES THE NEW DAY RESIDENTS OF THIS SQUATTER TOWN SCURRY TO CLAIM THE RICHES OF THE NEARBY HARMONY GOLD MINE BUT IT ISN'T THE GOLD THEY ARE AFTER THEY HURRY FOR THE TRASH BIN AT THE MINERS' HOSTEL RUSHING TO BEAT THE FLIES TO THE SCRAPS OF LAST NIGHT'S STEW AND THIS MORNING'S PORRIDGE SIYABONGA MAGARA A BAREFOOT SIXYEAROLD FILLS A PLASTIC BAG WITH BONES WHILE HIS BROTHER SORTS BREAD CRUSTS INTO A PILE THEIR FATHER WAS LAID OFF FROM THE MINE LAST YEAR WHEN GOLD PRICES HEADED FOR A SEVENYEAR LOW THEN HE RAN AWAY SAYS SIYABONGA BALANCING THE BAG OF BONES ON HIS HEAD HE RUNS BACK HOME TO THE TIN SHACKS DIRT ROADS AND BUCKET TOILETS OF MANDELA PARK IF I AM LUCKY HE SAYS I CAN SELL THESE FOR ONE RAND THAT'S 30 CENTS HERE ON A BLEAK PATCH OF RED EARTH STRETCHING LIKE PARCHED SKIN OVER SOME OF THE RICHEST VEINS OF ROCK IN THE WORLD SOUTH AFRICA'S TWO LEGENDARY COMMODITIES GOLD AND NELSON MANDELA COLLIDE IN A REVEALING SCENE OF THE COUNTRY'S TROUBLED PASSAGE FROM APARTHEID TO DEMOCRACY THIS JARRING JUXTAPOSITION OF REFORM AND RECESSION RAISES THE QUESTION CAN A NATION TRULY DEMOCRATIZE IN POVERTY WHILE THE WORLD PRICE OF GOLD HAS SURGED IN RECENT WEEKS IT HAS DONE LITTLE TO REMOVE THE ECONOMIC DESPAIR AND VIOLENCE THAT HAS DESCENDED ON THE CAPE OF GOOD HOPE GOLD'S NEW GLITTER COMES AFTER A THREEYEAR SLUMP THAT CRIPPLED THE ECONOMY OF THE WORLD'S LARGEST GOLD PRODUCER AND WOUNDED MR MANDELA'S ABILITY TO MEET THE EXPECTATIONS OF HIS DOWNTRODDEN FOLLOWERS WHEN HE WAS RELEASED FROM 27 YEARS OF PRISON ON FEB 11 1990 GOLD BRUSHED 420 AN OUNCE AND MEMBERS OF THE WHITE GOVERNMENT AND MR MANDELA'S AFRICAN NATIONAL CONGRESS ENVISIONED IT RISING TO 450 YIELDING A WINDFALL TO FINANCE THE SOCIAL AND POLITICAL REFORMS INSTEAD GOLD TUMBLED NEARLY 100 OVER THREE YEARS KNOCKING 2 ANNUALLY OFF SOUTH AFRICA'S GROSS DOMESTIC PRODUCT THE MINING HOUSES SADDLED WITH HIGH COSTS WHILE HARVESTING SOME OF THE WORLD'S DEEPEST MINES SHED 125000 JOBS IN A COUNTRY ALREADY BURDENED WITH 40 UNEMPLOYMENT THE IMPACT IS HORRIFIC FOR EVERY MINE WORKER WHO LOSES HIS JOB ANOTHER TWO JOBS ARE LOST IN THE ECONOMY AND EACH MINE WORKER FEEDS 10 TO 12 PEOPLE SO DAMAGED IS THE ECONOMY THAT EVEN THE RECENT SURGE OF GOLD THE PRECIOUS METAL THAT HAS SHAPED THE COUNTRY SINCE ITS DISCOVERY ON THE WITWATERSRAND MAIN REEF IN 1886 IS UNABLE TO REVERSE THIS YESTERDAY AUGUST GOLD CLOSED AT 39780 AN OUNCE IN NEW YORK UP 470 BUT STILL SOME 22 BELOW THE PRICE WHEN MR MANDELA WAS RELEASED THE MINING HOUSES DOUBTFUL THAT THE CURRENT PRICE RISE WILL LAST AREN'T REHIRING ANY MINERS AND HIGHCOST MINES SUCH AS HARMONY ONCE ONE OF THE COUNTRY'S MOTHER LODES ARE STILL UNPROFITABLE THE DEPTHS OF SOUTH AFRICA'S ECONOMIC CRISIS AND THE RESULTING STRAINS ON THE REFORM PROCESS WERE CONFIRMED LAST WEEK WHEN MR MANDELA AND THE MAN WHO FREED HIM PRESIDENT FW DE KLERK ARRIVED IN WASHINGTON AS GOLD JUMPED 9 IN ONE DAY RATHER THAN JOYOUSLY RUBBING THEIR HANDS OVER THEIR COUNTRY'S WINDFALL THEY SHEEPISHLY STRETCHED THEM OUT FOR FINANCIAL AID MR MANDELA REACHING FOR FOREIGN INVESTMENT MR DE KLERK FOR ACCESS TO INTERNATIONAL MONETARY FUND AND WORLD BANK LOANS LONG DENIED BY ANTIAPARTHEID SANCTIONS A GOOD ECONOMY IS VITAL FOR SUSTAINING DEMOCRACY AND DEMOCRACY IS VITAL FOR SUSTAINING A GOOD ECONOMY SAYS ANC ECONOMIST TITO MBOWENI CURSING THE VICIOUS CIRCLE OUTSIDE HIS JOHANNESBURG OFFICE A POSTER DETAILS THE LEGACY OF APARTHEID NINE MILLION UNEMPLOYED SEVEN MILLION SQUATTERS FOURTEEN MILLION WHO CAN'T READ OR WRITE THREEHUNDRED THOUSAND HOUSES NEED TO BE BUILT EACH YEAR JUST TO CATCH UP WITH THE CURRENT BACKLOG IT IS AN ANC CAMPAIGN AD FOR THE FIRST ALLRACE ELECTIONS SCHEDULED FOR NEXT APRIL 27 WHILE THAT ELECTION WILL MAKE HISTORY OFFICIALLY BURYING THE NOTORIOUS POLICY OF RACIAL SEGREGATION THE PERIOD AFTER THE ELECTION WILL MAKE OR BREAK DEMOCRACY IN SOUTH AFRICA BLACK AND WHITE LEADERS ALIKE ARE KEENLY AWARE THAT THE COUNTRY'S IMPOVERISHED MAJORITY WILL JUDGE THE SUCCESS OF DEMOCRACY BY THE MATERIAL BENEFITS IT YIELDS HOUSES JOBS AND EDUCATION WILL BE AS IMPORTANT AS A VOTE NO MATTER HOW GOOD YOUR CONSTITUTION IS IT MEANS NOTHING TO THE PERSON STARVING IN THE SQUATTER CAMPS OR IN THE TOWNSHIPS JAY NAIDOO A LEADER OF THE BLACK TRADE UNION MOVEMENT TELLS AUDIENCES AROUND THE COUNTRY ALREADY THE QUESTIONING HAS BEGUN AN OFFICIAL OF THE INSTITUTE FOR MULTIPARTY DEMOCRACY IS EXPLAINING THE RITUALS OF DEMOCRACY TO ONE SOWETO GATHERING WHEN AN OLD WOMEN RISES IN THE BACK MY SON WHAT YOU SAY MAY BE TRUE SHE SAYS BUT IS THIS DEMOCRACY AND ELECTION GOING TO GIVE ME FOOD WILL IT GIVE ME SHELTER TO THE SQUATTERS OF MANDELA PARK WHERE THE RARE TELEVISION RUNS OFF A CAR BATTERY FOR LACK OF ELECTRICITY THE PRESSURES ON THE COUNTRY'S POLITICIANS PALE IN THE WRETCHED LIGHT OF THEIR OWN MISERY WHEN YOU'RE IN TROUBLE YOU DON'T KNOW HOW IT WILL EVER END AND I'M IN TROUBLE NOW SAYS YOLISWA PHUTUMO STRUGGLING TO FEED HER TWO YOUNG CHILDREN SINCE HER HUSBAND WAS FIRED AFTER 15 YEARS ON THE HARMONY MINE HERE AT HARMONY THE PAYROLL WAS AXED TO 16000 FROM 33000 IN A SERIES OF MOVES TO KEEP THE MINE OPEN AS THE GOLD PRICE PLUNGED STUNNED THE NEWLY UNEMPLOYED SQUATTED ON THE BARREN FIELD RIGHT ABOVE WHERE THEY ONCE WORKED BUT EVEN NOW AS THE PRICE SURGES NEW SHACKS RISE EVERY DAY TODAY SOME 8000 PEOPLE POPULATE MANDELA PARK IDLY MOVING ABOUT THE RUTTED DIRT ROADS STEPPING OVER THE GARBAGE AND THE GOATS AND DOGS AND CHICKENS THAT COME TO SCROUNGE WHAT CAN A NEW GOVERNMENT DO IS ONE BETTER THAN THE OTHER ASKS MRS PHUTUMO MAYBE MANDELA CAN GIVE US A JOB BUT I DON'T HAVE MUCH HOPE SOUTH AFRICA'S DOGGED OPTIMISTS ARGUE THAT GOLD'S ROLLERCOASTER RIDE AND THE DEEP RECESSION HAVE HELPED FOCUS THE ECONOMIC DEBATE ON WAYS TO DIVERSIFY THE ECONOMY RATHER THAN RELYING ON ITS PRECIOUS METALS IT HAS SOBERED UP EVERYONE SAYS BOBBY GODSELL AN EXECUTIVE AT ANGLO AMERICAN CORP THE COUNTRY'S LARGEST MINING HOUSE IT HAS PUT THE QUESTION OF GROWTH ON EVERYONE'S AGENDA SHOCKED BY THE LOSS OF JOBS EVEN THE BLACK LABOR UNIONS ARE FOCUSING ON SHOP FLOOR COMPROMISES RATHER THAN MILITANTLY PRESSING FOR EVER HIGHER WAGE DEMANDS WE HAVE CHANGED FROM AN ADVERSARIAL UNION TO ONE THAT IS MUCH MORE CREATIVE MUCH MORE DESIGNORIENTED TO FINDING SOLUTIONS TO THE PROBLEMS WE'RE FACING SAYS MARCEL GOLDING THE ASSISTANT SECRETARY GENERAL OF THE NATIONAL UNION OF MINEWORKERS ONE OF THEIR CREATIVE SOLUTIONS IS TO FORGO HUGE WAGE INCREASES IN RETURN FOR A PROFITSHARING SCHEME STILL THE VICIOUS CIRCLE OF POVERTY AND DEMOCRACY SPINS ON ACROSS THE STREET FROM MR GOLDING'S OFFICE A LINE OF PEOPLE WAITING TO COLLECT UNEMPLOYMENT INSURANCE WINDS AROUND SEVERAL CITY BLOCKS FOR DEMOCRACY TO BE APPRECIATED HE SAYS THE QUALITY OF LIFE NEEDS TO IMPROVE 9307080114 930708 ECONOMY BANKS ARE EXPECTED TO REPORT BIG GAINS IN 2NDPERIOD NET AS BADDEBT COSTS FALL BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MAJOR BANKS ARE EXPECTING TO REPORT YET ANOTHER STRONG QUARTER AS THEY CONTINUE TO BE HELPED BY SHARPLY LOWER BADDEBT COSTS AND WIDE PROFIT MARGINS DESPITE HANDWRINGING ABOUT THE FUTURE SOURCE OF THEIR EARNINGS BANKS SEE NO SIGN OF ABATEMENT IN EITHER MARGINS OR SMALLER DEBT CHARGES BANKS ON AVERAGE ARE EXPECTED TO REPORT AN 18 INCREASE IN NET INCOME FOR THE SECOND QUARTER ACCORDING TO A FORECAST BY FIRST BOSTON CORP AFTER GETTING PUMMELED IN APRIL AND MAY ON FEARS THAT BANK EARNINGS HAD PEAKED BANKING COMPANY STOCKS HAVE REBOUNDED SHARPLY IN RECENT WEEKS WE EXPECT SECONDQUARTER EARNINGS TO BE A MIRROR IMAGE OF THE STRONG FIRSTQUARTER RESULTS REFLECTING MODEST REVENUE GROWTH AGGRESSIVE EXPENSE CONTROL AND FURTHER ASSETQUALITY IMPROVEMENTS SAYS THOMAS HANLEY THE FIRM'S CHIEF BANKING ANALYST BECAUSE MOST BANKS HAVE SET ASIDE SUFFICIENT RESERVES TO COVER PROBLEM DEBTS PROVISIONS FOR LOAN LOSSES WILL FALL SHARPLY AND SOME OF THE FIRMS MIGHT NOT HAVE TO RESERVE MUCH OF ANYTHING BANKS THAT WILL NEED LITTLE IF ANY RESERVES INCLUDE REPUBLIC NEW YORK CORP JP MORGAN & CO NORWEST CORP FIRST INTERSTATE BANCORP AND WACHOVIA CORP SAY ANALYSTS THE POTENTIAL AT CERTAIN BANKS DEFINITELY EXISTS FOR NEGATIVE PROVISIONS SAYS MR HANLEY THAT WOULD MEAN SOME BANKS COULD MOVE EXCESS RESERVES TO THE INCOME STATEMENT AND FATTEN THE BOTTOM LINE STILL BIG BANKS SUCH AS CITICORP AND CHEMICAL BANKING CORP WILL NEED TO SET ASIDE HUNDREDS OF MILLIONS OF DOLLARS FOR BAD DEBTS THE SAME STORY THAT HELPED THE INDUSTRY RECOVER IS STILL IN PLACE A BENEVOLENT BOND MARKET IN THE QUARTER MOST LIKELY INCREASED THE VALUE OF BANKS' SECURITIES PORTFOLIOS WHICH HAVE CONTINUED TO GROW THIS YEAR INTEREST MARGINS BETWEEN BORROWING AND LENDING WILL REMAIN UNUSUALLY WIDE ALTHOUGH THEY COULD BEGIN TO NARROW FROM THE FIRST QUARTER AMONG MONEYCENTER BANKS SECURITIES AND CURRENCY TRADING WILL HELP BANKS' NONLENDING BUSINESSES ESPECIALLY IN EUROPE WHERE INTEREST RATES HAVE BEEN FALLING POSITIVE SURPRISES COULD COME FROM JP MORGAN AND BANKERS TRUST NEW YORK CORP SAY ANALYSTS SHARES OF JP MORGAN ROSE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TO 69125 UP 1125 OR 17 WHILE BANKERS TRUST SHARES CLIMBED TO 75 UP 1 OR 14 THE EARNINGS CONSENSUS FOR BANKERS TRUST HAS RISEN TO 216 A SHARE FROM A PREVIOUS CONSENSUS OF 208 A SHARE ACCORDING TO FIRST CALL CORP IN THE YEAREARLIER QUARTER BANKERS TRUST EARNED 239 A SHARE TO BE SURE LOAN DEMAND REMAINS SPOTTY WHICH WILL CONSTRAIN REVENUE GROWTH IN THE INDUSTRY ANY LENDING INCREASE WILL PROBABLY COME FROM CONSUMER LOANS SINCE CONSUMER CREDIT OUTSTANDING CONTINUED TO RISE IN THE QUARTER BUT GENERALLY IT'S MORE OF THE SAME FOR THE INDUSTRY AT SHEARSON LEHMAN'S BANKING CONFERENCE LAST MONTH IN BERMUDA 26 COMPANIES GAVE PRESENTATIONS AND VIRTUALLY ALL 26 COMPANIES SAID THEY WERE VERY CONFIDENT THAT CREDITQUALITY PROBLEMS WERE BEHIND THEM AND THAT MARGINS WILL REMAIN STRONG THIS YEAR SAYS JAMES ROSENBERG BANKING ANALYST AT THE FIRM IT'S GOING TO BE A VERY GOOD QUARTER FOR BANK EARNINGS JUST YESTERDAY FIRST INTERSTATE CHAIRMAN EDWARD CARSON SAID IN AN INTERVIEW THAT THE BIG CALIFORNIA BANK WILL REPORT SECONDQUARTER EARNINGS ABOVE THE 1195 MILLION OR 138 A SHARE IT EARNED IN THE FIRST QUARTER BEFORE A NET GAIN OF 185 MILLION OR 242 A SHARE FROM A ONETIME ACCOUNTING CHANGE THE ESTIMATE MEANS FIRST INTERSTATE WILL EASILY SURPASS ANALYSTS' EXPECTATIONS OF SECONDQUARTER NET OF 113 MILLION OR 134 A SHARE FIRST INTERSTATE EARNED 645 MILLION OR 75 CENTS A SHARE IN THE SECOND QUARTER OF 1992 WE WILL DO BETTER THAN WE DID IN THE FIRST QUARTER AND CONSIDERABLY BETTER THAN WHAT ANALYSTS ARE LOOKING AT FOR THE SECOND QUARTER MR CARSON SAID HE DECLINED TO SAY EXACTLY BY HOW MUCH THE RESULTS WOULD EXCEED THE ANALYSTS' ESTIMATES MR CARSON SAID THE COMPANY IS ON TRACK TO FINISH 1993 AT OR ABOVE ANALYSTS' ESTIMATES OF 478 MILLION 570 A SHARE THE BANK HAD PROJECTED 1993 PROFIT OF 450 MILLION OTHER COMPANIES THAT COULD REPORT BETTER THAN EXPECTED RESULTS INCLUDE BANK OF NEW YORK CO AND CORESTATES FINANCIAL CORP AT THE SAME TIME WALL STREET IS INCREASING ESTIMATES FOR BANKS SUCH AS CITICORP FIRST FIDELITY BANCORP FIRST CHICAGO CORP AND BANC ONE CORP FIRST CALL REPORTS ON THE DOWNSIDE BANKAMERICA CORP COULD DISAPPOINT WALL STREET BECAUSE REVENUE WILL PROBABLY REMAIN LACKLUSTER TWENTYTWO ANALYSTS REDUCED EARNINGS ESTIMATES FOR BANKAMERICA CORP AND ONLY ONE INCREASED THE SECONDQUARTER ESTIMATE ACCORDING TO FIRST CALL THE CONSENSUS IS FOR THE BANK TO EARN 117 A SHARE IN THE QUARTER DOWN FROM THE PREVIOUS CONSENSUS ESTIMATE OF 122 A SHARE IN THE SECOND QUARTER OF 1992 THE BANK EARNED 63 CENTS A SHARE RALPH T KING JR IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9307080112 930708 BUSINESS BRIEF SOUTHWESTERN PUBLIC SERVICE COULD FACE CREDIT RATING CUT IF EL PASO BID SUCCEEDS SOUTHWESTERN PUBLIC SERVICE CORP COULD FACE A CUT IN ITS CREDIT RATINGS IF ITS 22 BILLION BID FOR EL PASO ELECTRIC CO IS SUCCESSFUL MOODY'S INVESTORS SERVICE INC NEW YORK PLACED SOUTHWESTERN PUBLIC SERVICE'S CREDIT RATINGS UNDER REVIEW FOR POSSIBLE DOWNGRADE BECAUSE OF THE UTILITY'S OFFER TO ACQUIRE EL PASO ELECTRIC WHICH IS OPERATING UNDER PROTECTION OF FEDERAL BANKRUPTCY LAW WE ARE PUTTING THE WORLD ON NOTICE THAT THERE ARE A LOT OF UNKNOWNS THERE SAID SUSAN ABBOTT ELECTRIC UTILITIES ANALYST WITH MOODY'S THE AGENCY IS CONCERNED THAT THIS IS A PARTICULARLY LARGE ACQUISITION FOR SUCH A SMALL UTILITY SHE SAID AMARILLO TEXASBASED SOUTHWESTERN PUBLIC SERVICE WITH 1992 ANNUAL REVENUE OF ABOUT 750 MILLION PROVIDES ELECTRIC SERVICE TO ABOUT 356000 CUSTOMERS IN TEXAS NEW MEXICO OKLAHOMA AND KANSAS EL PASO ELECTRIC'S REVENUE FOR 1992 WAS ABOUT 525 MILLION AND IT HAS ABOUT 205000 CUSTOMERS IN THE EL PASO AREA THE RIO GRANDE VALLEY AND SOUTHERN NEW MEXICO THE RATINGS AGENCY ALSO NOTED THAT QUESTIONS REMAIN ABOUT HOW EL PASO ELECTRIC WILL BE INTEGRATED INTO SOUTHWESTERN PUBLIC SERVICE'S EXISTING STRUCTURE AND HOW THE BALANCE SHEET WILL LOOK AFTER THE ACQUISITION MS ABBOTT SAID MOODY'S WORRIES THAT TERMS FOR THE TRANSACTION COULD CHANGE SIGNIFICANTLY SOMETHING SHE SAYS HAPPENS OFTEN WITH ELECTRIC UTILITY MERGERS FURTHER THE AGENCY POINTED OUT THAT SOUTHWESTERN PUBLIC SERVICE'S 22 BILLION OFFER MIGHT HAVE TO GO HIGHER IN ORDER TO PREVAIL SOUTHWESTERN PUBLIC SERVICE IS ENGAGED IN A HEATED CONTEST WITH CENTRAL & SOUTH WEST CORP A DALLAS UTILITY HOLDING COMPANY FOR EL PASO ELECTRIC WHICH FILED FOR BANKRUPTCYLAW PROTECTION IN JANUARY 1992 EL PASO ELECTRIC FILED A 21 BILLION REORGANIZATION PLAN IN MAY PROPOSING THAT EL PASO ELECTRIC WOULD BECOME A CENTRAL & SOUTH WEST SUBSIDIARY EL PASO ELECTRIC WITH CENTRAL & SOUTH WEST ON BOARD STILL HAS THE EXCLUSIVE RIGHT TO PROCEED WITH ITS PLAN AS FILED WITH THE COURT SOUTHWESTERN FILED ITS 22 BILLION BID WITH THE BANKRUPTCY COURT'S MEDIATOR AND CONTINUES TO NEGOTIATE WITH CREDITORS THE BANKRUPTCY COURT JUDGE HAS THE FINAL SAY OVER WHICH OF THE COMPETING OFFERS IS ACCEPTED RIGHT NOW SOUTHWESTERN IS VERY HIGHLY RATED WITH A DOUBLEA2 RATING ONLY THREE OTHER UTILITIES HAVE A HIGHER RATING MS ABBOTT SAID THE AGENCY DECLINED TO SAY HOW MUCH THE DROP IN RATINGS IF ANY WOULD BE BUT OFFICIALS AT SOUTHWESTERN PUBLIC SERVICE SAY THEY'VE ALREADY FACTORED A LIKELY DOWNGRADE INTO THEIR PLANS WE RECOGNIZE THAT THE UTILITY WILL BE IN THE SINGLEA CATEGORY IF THE BID IS SUCCESSFUL SOON AFTER CENTRAL & SOUTH WEST'S BID WAS DECLARED MOODY'S CONFIRMED RATINGS ON THAT HOLDING COMPANY'S COMMERICAL PAPER SAYING IT WOULD REVIEW THE RATINGS ON UTILITY SUBSIDIARIES IF THE EL PASO ELECTRIC PLAN WENT THROUGH SEPARATELY SEVERAL CREDITOR GROUPS INCLUDING UNSECURED CREDITORS FIRST AND SECOND MORTGAGE HOLDERS AND CERTAIN BANKS THAT PROVIDE LETTERS OF CREDIT FOR EL PASO'S POLLUTION CONTROL BONDS HAVE COMMITTED TO EL PASO'S PLAN SO FAR CENTRAL & SOUTH WEST HAS THE SUPPORT OF CREDITORS THAT HOLD ABOUT 55 OF EL PASO'S DEBT ALTHOUGH NO CREDITOR GROUP HAS YET VOTED TO SUPPORT SOUTHWESTERN'S PLAN THE COMPANY HAS THE SUPPORT OF THE STAFF OF THE PUBLIC UTILITIES COMMISSION CONCERNING A PROPOSED RATE PATH ANY MERGER MUST BE APPROVED BY VARIOUS STATE AND FEDERAL REGULATORY AGENCIES IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY SOUTHWESTERN PUBLIC SERVICE GAINED 50 CENTS TO 32875 CENTRAL & SOUTH WEST WAS UNCHANGED AT 32875 IN OVERTHECOUNTER TRADING EL PASO FELL 125 CENTS TO 2625 9307080111 930708 WHO'S NEWS FIRST UNION REAL ESTATE INVESTMENTS FIRST UNION REAL ESTATE INVESTMENTS CLEVELAND JAMES C MASTANDREA 49 YEARS OLD WILL BECOME PRESIDENT AND THE FIRST CHIEF OPERATING OFFICER OF THE EQUITY REAL ESTATE INVESTMENT TRUST EFFECTIVE JULY 19 HE SUCCEEDS DONALD S SCHOFIELD AS PRESIDENT MR SCHOFIELD 64 WILL REMAIN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9307080110 930708 WHO'S NEWS QVC NETWORK INC QVC NETWORK INC WEST CHESTER PA WILLIAM SCHERECK 47 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT BROADCAST OPERATIONS AND ENGINEERING A NEW POSITION AT THIS 24HOUR CABLE SHOPPING NETWORK HE HAD BEEN VICE PRESIDENT CABLE AFFILIATES AT FOX BROADCASTING CO A UNIT OF NEWS CORP 9307080109 930708 WHO'S NEWS MEDICAL DIAGNOSTICS INC MEDICAL DIAGNOSTICS INC BURLINGTON MASS THE PROVIDER OF MAGNETIC RESONANCE SCANNING SERVICES SAID IT NAMED EDWARD J CONNORS A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN MR CONNORS WAS MOST RECENTLY PRESIDENT OF MERCY HEALTH SERVICES A HOSPITAL CHAIN BASED IN DETROIT 9307080108 930708 WHO'S NEWS FORTIS INC FORTIS INC NEW YORK CARL J SCHRAMM 46 YEARS OLD WAS NAMED PRESIDENT OF STRATEGIC HEALTHCARE INITIATIVES A NEW UNIT OF THIS INSURANCE AND FINANCIAL SERVICES COMPANY THAT WILL INVEST IN HEALTHCARE COMPANIES AND EXPAND MANAGEDCARE ACTIVITIES OF FORTIS MR SCHRAMM WHO HAD BEEN PRESIDENT OF FORTIS'S TIME INSURANCE CO UNIT WILL CONTINUE AS AN EXECUTIVE VICE PRESIDENT OF FORTIS WHICH IS JOINTLY OWNED BY AMEV NV OF THE NETHERLANDS AND AG GROUP OF BELGIUM 9307080107 930708 BUSINESS BRIEF FORD MOTOR CO CONCERN RECALLS 1500 TRUCKS TO FIX SOME FAULTY MOTORS FORD MOTOR CO SAID IT IS RECALLING 1500 1993MODEL LIGHT TRUCKS TO REPLACE FAULTY MOTORS IN SOME ELECTRICSHIFT TRANSFER CASE ASSEMBLIES FORD SAID AN ESTIMATED 100 OF THE FSERIES AND BRONCO LIGHT TRUCKS BEING RECALLED WERE BUILT WITH OLDER MODEL MOTORS THAT MAY SHIFT INTO NEUTRAL WHEN COASTING FORWARD OR DRIVEN IN REVERSE WHEN OPERATED IN THE 4X4 HIGHRANGE MODE THE VEHICLE COULD ALSO ROLL IF THE PARK BRAKE ISN'T SET WHILE IN PARK FORD SAID IT IS ALSO RECALLING 500 1993MODEL THUNDERBIRD SUPERCOUPE VEHICLES TO REPLACE A DEFECTIVE THROTTLE BODY ASSEMBLY THE ASSEMBLIES MAY HAVE AN OVERSIZE HOLE IN THE THROTTLE LEVER THAT MAY DISCONNECT THE AUTOMATIC TRANSMISSION THROTTLE VALVE CABLE FROM THE THROTTLE BODY CAUSING THE TRANSMISSION TO FAIL FORD SAID IT IS UNAWARE OF REPORTS OF ACCIDENTS OR INJURIES RELATED TO EITHER CONDITION FORD DEALERS WILL MAKE REPAIRS AT NO CHARGE 9307080106 930708 POLITICS & POLICY CLINTON ON CAMPAIGN TRAIL AGAIN TRIES TO WOO BOTH AMERICANS AND JAPANESE BY JEFFREY H BIRNBAUM AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO BILL CLINTON THE WORLD LEADER IS ACTING AN AWFUL LOT LIKE BILL CLINTON THE PRESIDENTIAL CANDIDATE TO PERSUADE THE RELUCTANT JAPANESE TO LOWER BARRIERS TO US EXPORTS MR CLINTON HAS DONE MORE THAN PARTICIPATE IN THE MANY FORMAL MEETINGS WITH TOP GOVERNMENT OFFICIALS THAT ARE A STAPLE OF ECONOMIC SUMMITS SUCH AS THE ONE HERE THIS WEEK HE HAS TAKEN HIS PLEA DIRECTLY TO THE JAPANESE PEOPLE AMERICAN STYLE HE SAT ON A STOOL AND ANSWERED QUESTIONS FROM A TELEVISION AUDIENCE A LA PHIL DONAHUE HE EVEN PRESSED THE FLESH DURING A STREET WALK STAGED FOR HIM BY MORT ENGELBERG THE PRODUCER OF SMOKEY AND THE BANDIT MOVIES WHO ALSO COORDINATED HIS MOST SUCCESSFUL BUS TRIPS THROUGH THE US LAST YEAR THE ENTIRE EFFORT IS CONSCIOUSLY DESIGNED AS A POLITICAL CAMPAIGN TO WIN THE HEARTS AND MINDS OF CITIZENS ON BOTH SIDES OF THE PACIFIC SPECIFICALLY JAPANESE CONSUMERS AND US WORKERS SO AMBITIOUS A REACH COULD EASILY FALL SHORT MR CLINTON ALREADY HAS ENCOUNTERED TWO SEPARATE GROUPS OF PROTESTERS WHO OBJECTED TO WHAT THEY SEE AS HIS MEDDLING WAYS INDEED THE PROUD JAPANESE DON'T MUCH LIKE BEING TOLD WHAT TO DO IF AMERICA REALLY WANTS TO INCREASE ITS EXPORTS IT HAS TO MAKE BETTER GOODS KEITARO MIYAHARA A 20YEAROLD STUDENT TELLS A REPORTER I LIKE CARS AND I CAN TELL YOU THAT IF YOU COMPARE JAPANESE CARS IN DETAIL TO AMERICAN CARS JAPANESE CARS ARE FAR BETTER OF COURSE IT'S NOTHING NEW FOR A US PRESIDENT TO PLAY TO HIS OWN HOME FOLKS WHILE NEGOTIATING WITH FOREIGN HEADS OF STATE AND PRESIDENT CLINTON HAS BEEN AS ACTIVE AT THIS AS ANY HE AND HIS TOP AIDES HAVE MADE THE WORD JOBS THEIR MANTRA FOR EXAMPLE WHEN THE PRESIDENT SPOKE OF PROGRESS IN TRADE NEGOTIATIONS HERE HE PUT IT THIS WAY THIS REALLY CAN MEAN AN ENORMOUS NUMBER OF JOBS TO THE AMERICAN PEOPLE BUT DURING THIS YEAR'S GROUP OF SEVEN TALKS MR CLINTON HAS GIVEN SUCH MIDDLECLASS RHETORIC A NEW TWIST TRADETALK BREAKTHROUGHS HE SAID WILL NOT ONLY BENEFIT AVERAGE US FAMILIES BUT WILL BENEFIT AVERAGE JAPANESE FAMILIES AS WELL ON WEDNESDAY THE PRESIDENT MADE THIS ONESIZEFITSALL ARGUMENT DURING AN ADDRESS TO STUDENTS AT WASEDA UNIVERSITY THE IDEAS I PROPOSE ARE BENEFICIAL TO BOTH OF US BECAUSE THEY WILL INCREASE THE NUMBER AND LOWER THE COSTS OF THE PRODUCTS YOU ARE ABLE TO BUY THE SERVICES YOU ARE ABLE TO ACCESS HE SAID TREASURY SECRETARY LLOYD BENTSEN PUT AN APPROPRIATELY HOMESPUN POINT ON THAT ARGUMENT BY NOTING THAT A PAIR OF LEVI'S JEANS COSTS 74 MORE HERE THAN IN THE US BECAUSE OF JAPANESE TRADE BARRIERS MR CLINTON ALSO WON POINTS WITH THE JAPANESE BY TELEPHONING CONDOLENCES TO THE PARENTS OF A JAPANESE EXCHANGE STUDENT WHO WAS SHOT AND KILLED IN LOUISIANA RECENTLY AND HE TURNED THE CALL INTO A PLUG BACK IN THE US FOR HIS OWN ANTICRIME AND HANDGUNCONTROL LEGISLATION MR CLINTON EVEN WOOED THE JAPANESE ELITE DURING A RECEPTION AT THE US AMBASSADOR'S RESIDENCE IN ADDITION TO THE USUAL BUSINESS AND LABOR LEADERS HE ALSO HOSTED A FEW OF THE COUNTRY'S MORE UPSTART POLITICIANS INCLUDING TSUTOMU HATA OF THE SHINSEITO A NEW PARTY THAT ESPOUSES THE KIND OF PROCONSUMERISM THAT HE IS TRYING TO SELL SUCH OVERT POLITICKING HAS AT TIMES COME CLOSE TO AFFRONTING THE RULING LIBERAL DEMOCRATIC PARTY WHICH IS FACING ITS MOST SERIOUS THREAT IN DECADES IN PARTICULAR MR CLINTON HAS REFERRED OFTEN TO THE MANY BENEFITS OF POLITICAL CHANGE AN ECHO OF THE CENTRAL THEME OF HIS OWN PRESIDENTIAL BID LAST YEAR WHICH UNSEATED AN INCUMBENT IN RESPONSE MR CLINTON HAS HAD TO PULL BACK A BIT ASKED IF HE WERE INTERFERING IN JAPANESE POLITICS HE SAID OH NO I WENT OUT OF MY WAY TO MAKE IT CLEAR THAT I WAS TALKING ABOUT ECONOMIC ISSUES NOT THE NEXT ELECTION BUT HIS REMARKS AND METHODS ARE CLEARLY HAVING AN IMPACT HE'S SUCH A CONTRAST TO 73YEAROLD PRIME MINISTER KIICHI MIYAZAWA THEIR AGES ARE SO DIFFERENT SAID TOMIKO NISHIKAWA 44 AS SHE BOUGHT PICKLES FROM A STREET VENDOR NEAR TOKYO'S KANDA STATION JAPAN'S POLITICIANS ARE TOO OLD WE SHOULD HAVE LEADERS IN THEIR 40S AND 50S TOO HILLARY RODHAM CLINTON HAS MADE AT LEAST AS BIG A MARK MAYBE BIGGER AT WASEDA UNIVERSITY THE MOST ENTHUSIASTICALLY RECEIVED QUESTION TO MR CLINTON FROM THE AUDIENCE WAS ABOUT THE ROLE OF HIS WIFE OUTSIDE THE HALL MR MIYAHARA THE CAR BUFF SAID I LIKE HER SHE STANDS OUT I WONDER IF HE'D BE ANY GOOD WITHOUT HER 9307080105 930708 WHO'S NEWS EARTH TECHNOLOGY CORP EARTH TECHNOLOGY CORP LONG BEACH CALIF RICHARD R PANNELL AND RICHARD J HECKMANN WERE ELECTED DIRECTORS INCREASING THE BOARD OF THIS ENVIRONMENTAL CONSULTING SERVICES CONCERN TO NINE MR PANNELL 39 YEARS OLD IS CHIEF OPERATING OFFICER OF THE COMPANY MR HECKMANN 49 IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF US FILTER CORP 9307080104 930708 BUSINESS BRIEF NUCOR CORP STEELMAKER TO RAISE CAPACITY AT ITS ARKANSAS MILL BY 67 NUCOR CORP IN YET ANOTHER EXPANSION IN THE SHEETSTEEL MARKET SAID IT WILL INCREASE THE ANNUAL CAPACITY OF ITS HICKMAN ARK SHEETSTEEL MILL BY 67 TO TWO MILLION TONS FROM 12 MILLION TONS THE CHARLOTTE NC COMPANY SAID THE EXPANSION WILL COST LESS THAN 35 MILLION AND BE IN EFFECT BY THE 1994 THIRD QUARTER NUCOR SAID THE EXPANSION WILL REQUIRE A 15 INCREASE IN THE NUMBER OF EMPLOYEES THE MILL CURRENTLY EMPLOYS 300 NUCOR'S ON THE MARCH SAID WALTER CARTER STEEL ANALYST WITH DRI/MCGRAW HILL BUT HE SAID THE RAPID EXPANSION OF SHEETSTEEL MINIMILLS WHICH HAS BEEN HURTING INTEGRATED STEELMAKERS COULD BEGIN TO SQUEEZE MINIMILLS' PROFITS AS WELL AT SOME POINT THEY'RE GOING TO HAVE TO START PAYING ATTENTION TO THE TOTAL MARKET AND IT'S NOT A GROWTH MARKET HE SAID 9307080103 930708 TECHNOLOGY & HEALTH WIDENING GAP IS SEEN IN HEALTH OF RICH POOR BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL THE HEALTH GAP BETWEEN PRIVILEGED AND POOR AMERICANS HAS WIDENED SINCE 1960 EVEN AS LIFE EXPECTANCY FOR ALL AMERICANS HAS INCREASED A NEW STUDY SAYS A REPORT BY RESEARCHERS AT THE NATIONAL CENTER FOR HEALTH STATISTICS FOUND THAT IN 1986 THE DEATH RATE FOR AMERICANS WHO EARNED UNDER 9000 A YEAR WAS THREE TO SEVEN TIMES HIGHER THAN FOR THOSE WHO MADE MORE THAN 25000 ADDITIONALLY WHITE MEN BETWEEN 25 AND 64 YEARS OLD WHO FAILED TO GRADUATE FROM HIGH SCHOOL DIED AT A RATE OF 76 PER 1000 VERSUS 28 PER 1000 FOR WHITE MEN THE SAME AGE WHO GRADUATED FROM COLLEGE THESE GAPS INCREASED FROM 23 TO MORE THAN 100 SINCE 1960 DEPENDING ON SEX AND RACE THE STUDY FOUND THE STUDY ALONG WITH SEVERAL RELATED ARTICLES THAT APPEAR IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE REFLECT LONGSTANDING HEALTH DISPARITIES IN US SOCIETY ASSOCIATED NOT ONLY WITH ACCESS TO HEALTH CARE BUT WITH EDUCATION AND INCOME A PERSON'S SOCIOECOMIC STATUS IS ONE OF THE STRONGEST PREDICTORS OF HEALTH STATUS SAID GREGORY PAPPAS AN EPIDEMIOLOGIST AT THE CENTER AND PRINCIPAL AUTHOR OF THE STUDY THE CLINTON ADMINISTRATION IS PREPARING A SWEEPING HEALTHREFORM PROPOSAL THAT WOULD INCREASE ACCESS TO CARE FOR MILLIONS OF UNINSURED AND POORLY INSURED AMERICANS ACCESS TO HEALTH CARE IS AN IMPORTANT PART OF THE PROBLEM DR PAPPAS SAID BUT PREVENTION HAS TO BE EMPHASIZED OTHER EXPERTS WORRY THAT EVEN IF HEALTH REFORM SUCCEEDS IN EXPANDING ACCESS HIGH EXPECTATIONS WON'T BE REALIZED BECAUSE MEDICAL PROVIDERS CAN'T SOLVE THE MYRIAD SOCIAL PROBLEMS THAT PROVOKE ENORMOUS DEMANDS ON THE HEALTH SYSTEM IN AN EDITORIAL ACCOMPANYING THE REPORT MARCIA ANGELL THE JOURNAL'S EXECUTIVE EDITOR POINTS OUT THAT SIMILAR HEALTH DISPARITIES EXIST AMONG SOCIOECONOMIC GROUPS IN THE UNITED KINGDOM WHERE A NATIONAL HEALTH SYSTEM ASSURES THAT ESSENTIALLY EVERYONE HAS ACCESS TO CARE A SEPARATE STUDY BY RESEARCHERS AT THE NATIONAL INSTITUTE OF AGING AND DUKE AND BOSTON UNIVERSITIES FOUND THAT GOOD HEALTH AND LIFE EXPECTANCY AMONG OLDER BLACK AND WHITE AMERICANS WAS INFLUENCED MORE BY EDUCATION LEVEL THAN BY RACE THE STUDY SHOWED FOR INSTANCE THAT 65YEAROLD MEN AND WOMEN WITH 12 OR MORE YEARS OF EDUCATION WERE LIKELY TO LIVE 24 TO 39 YEARS LONGER WITHOUT DISABILITY THAN OTHERS OF THE SAME AGE AND SEX BUT LESS EDUCATION 9307080102 930708 WHO'S NEWS ADOLPH COORS CO ADOLPH COORS CO GOLDEN COLO BILL WEINTRAUB FORMER SENIOR VICE PRESIDENT MARKETING OF TROPICANA PRODUCTS INC WAS NAMED VICE PRESIDENT MARKETING AT THIS COMPANY'S COORS BREWING CO UNIT MR WEINTRAUB 50 YEARS OLD SUCCEEDS ROBERT RECHHOLTZ WHO RETIRED AS EXECUTIVE VICE PRESIDENT MARKETING LAST THURSDAY 9307080100 930708 MOBIL CORP QATAR VENTURE FAIRFAX VA MOBIL CORP SAID ITS LIQUEFIED NATURAL GAS JOINT VENTURE COMPANY WITH QATAR WILL HAVE THE RIGHT TO MARKET AT LEAST 10 MILLION TONS ANNUALLY OF LIQUEFIED NATURAL GAS THE DEPUTY EMIR OF QATAR RECENTLY ISSUED A DECREE FORMALLY ESTABLISHING THE COMPANY CALLED RAS LAFFAN LIQUEFIED NATURAL GAS MOBIL OWNS A 30 INTEREST IN THE VENTURE AND QATAR GENERAL PETROLEUM CORP THE REST THE TWO COMPANIES WILL DEVELOP LNG FROM QATAR'S NORTH FIELD GAS RESERVES THE PROJECT IS EXPECTED TO BEGIN DELIVERING LNG IN 1998 9307080099 930708 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT ROXANNE S AUSTIN 32 YEARS OLD WAS ELECTED VICE PRESIDENT AND CONTROLLER OF THE COMPANY'S GM HUGHES ELECTRONICS CORP AND ITS OPERATING UNIT HUGHES AIRCRAFT CO BOTH BASED IN LOS ANGELES MS AUSTIN WHO ALSO BECOMES A MEMBER OF THE GM HUGHES ELECTRONICS POLICY BOARD PREVIOUSLY WAS A PARTNER WITH DELOITTE & TOUCHE SHE SUCCEEDS CHARLES H NOSKI WHO WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER LAST YEAR 9307080098 930708 ENTERPRISE NO SBA LOAN GUARANTEES TRY AGRICULTURE DEPARTMENT FARMERS HOME ADMINISTRATION HELPS MANY SMALL BUSINESSES IN RURAL AREAS BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL MARTINSVILLE VA WHEN A GROUP OF OUTOFWORK SAWMILL MANAGERS IN SOUTHERN VIRGINIA SOUGHT AN 820000 BANK LOAN LAST YEAR TO HELP RESTART THEIR FAILED COMPANY THEIR PLAN HIT AN UNEXPECTED SNAG OFFICERS AT A LOCAL BANK SAID THEY WOULDN'T APPROVE THE LOAN TO PINE PRODUCTS INC UNLESS THE FUNDS WERE BACKED BY A GOVERNMENT GUARANTEE BUT THE LOAN WAS TOO BIG FOR THE SMALL BUSINESS ADMINISTRATION'S GUARANTEE PROGRAM THE MOST POPULAR GOVERNMENT SOURCE OF SMALLCOMPANY FINANCING SO THE SAWMILL MANAGERS AT THE SUGGESTION OF AN ADVISER TURNED TO AN AGENCY LITTLE KNOWN FOR ITS SMALLBUSINESS TIES THE FARMERS HOME ADMINISTRATION AFTER FIVE MONTHS OF MEETINGS AND REAMS OF PAPERWORK THE FMHA AGREED LAST SEPTEMBER TO GUARANTEE 80 OF A SEVENYEAR 8 INSTALLMENT LOAN TO PINE PRODUCTS FROM MARTINSVILLE'S PIEDMONT TRUST BANK IN JANUARY WITH ITS SAWS WHIRRING AGAIN PINE PRODUCTS SOLD ITS FIRST BATCH OF YELLOWPINE LUMBER IN 18 MONTHS THE FMHA LOAN GUARANTEE MADE IT POSSIBLE TO PUT THIS WHOLE THING BACK TOGETHER AND PUT ABOUT 40 PEOPLE BACK TO WORK SAYS RONALD WOOD PINE PRODUCTS'S PRESIDENT MR WOOD AND FOUR OTHER MANAGERS OF THE PREVIOUSLY FAMILYOWNED FIRM OWN 60 OF THE REJUVENATED STOCK WHEN IT COMES TO HELP FOR SMALL BUSINESS UNCLE SAM IS TYPICALLY LONG ON ADVICE SUCH AS COUNSELING BROCHURES AND TELEPHONE HOT LINES AND SHORT ON ACCESS TO CASH WHAT FUNDS THERE ARE TEND TO BE CLUSTERED IN A VARIETY OF LOAN AND LOANGUARANTEE PROGRAMS ADMINISTERED BY THE SMALL BUSINESS ADMINISTRATION BUT AS PINE PRODUCTS'S EXPERIENCE SHOWS THE SBA ISN'T THE ONLY GAME IN TOWN UNDER ITS BUSINESS AND INDUSTRIAL LOAN PROGRAM THE FMHA AN ARM OF THE AGRICULTURE DEPARTMENT HAS BEEN AUTHORIZED IN RECENT YEARS TO HAND OUT 100 MILLION ANNUALLY IN LOAN GUARANTEES TO BUSINESSES IN RURAL AREAS OR ON THE OUTSKIRTS OF METROPOLITAN AREAS COMPANIES OF ANY SIZE CAN APPLY FOR GUARANTEES UP TO 10 MILLION THOUGH THE ACTUAL GUARANTEE AMOUNTS ARE TYPICALLY FAR LESS AND THE OVERALL AMOUNT MAY BE GOING UP PRESIDENT CLINTON WANTS TO TRIPLE THE BUSINESSLOAN GUARANTEE CEILING AT FMHA TO 300 MILLION AS PART OF HIS ECONOMIC STIMULUS PLAN THE HOUSE VOTED LAST WEEK TO BOOST THE CEILING TO 299 MILLION THE SENATE WILL CONSIDER THE MEASURE LATER THIS SUMMER FOR SMALL BUSINESSES SUCH PROGRAMS CAN BE A GODSEND WHILE SOME BANKS ARE ADOPTING MORE GENEROUS LENDING POLICIES AND LOWERING INTEREST RATES MANY SMALL COMPANIES REPORT CONTINUING DIFFICULTIES IN GETTING ACCESS TO CAPITAL AND THE CRACKDOWN ON BANKS' LENDING PRACTICES FOLLOWING THE SAVINGSANDLOAN DEBACLE CONTINUES TO PUT A SQUEEZE ON CREDIT TO RESPOND TO MORE STRINGENT REGULATIONS BANKS ARE INCREASING THEIR RESERVES REDUCING THE FUNDS THEY CAN LEND BECAUSE A GOVERNMENT GUARANTEE REMOVES THE RISK IN THE EYES OF THE REGULATORS THE FMHA LIKE THE SBA IS IN EFFECT THROWING A FINANCIAL LIFELINE TO MANY UNDERCAPITALIZED COMPANIES THIS PUTS GOVERNMENTGUARANTEE LOAN PROGRAMS IN A WHOLE NEW LIGHT SAYS GERALD HUGHES DIRECTOR OF THE SMALLBUSINESS DEVELOPMENT CENTER AT LONGWOOD COLLEGE IN FARMVILLE VA MR HUGHES HELPED PINE PRODUCTS PREPARE THE MASSIVE AMOUNTS OF PAPERWORK REQUIRED IN ITS FARMERS HOME LOANGUARANTEE APPLICATION BEFORE THEY GOVERNMENT GUARANTEES WERE ALWAYS LOOKED AT AS A LENDER OF LAST RESORT AND A NECESSARY EVIL NOW THEY'RE A NECESSARY INGREDIENT VINCENT PUCCIO A PIEDMONT TRUST COMMERCIAL LOAN OFFICER SAYS THE BANK NEEDED THAT DEGREE OF ASSURANCE OFFERED BY THE FMHA GUARANTEE TO MAKE THE LOAN TO PINE PRODUCTS THE BORROWERS HAD ALREADY POSTED EQUIPMENT AND REALESTATE AS COLLATERAL FOR THEIR LOAN PIEDMONT PAID FMHA 2 OF THE LOAN AS A FEE OF COURSE IN THE GIANT US ECONOMY 100 MILLION OR EVEN 300 MILLION IS JUST A DROP IN THE SMALLBUSINESS BUCKET STILL THE MONEY HAS WORKED TO SAVE A NUMBER OF SMALL COMPANIES THAT MIGHT OTHERWISE HAVE CUT BACK OPERATIONS OR EVEN CLOSED THEIR DOORS JACK WEITZMAN CHAIRMAN OF LAMSTEEL CORP OF AMERICA HARTSVILLE TENN SAYS THE FMHA TWICE HAS COME TO OUR RESCUE IN 1975 THE AGENCY GUARANTEED 985000 OF INDUSTRIAL REVENUE BONDS THAT ENABLED THE COMPANY TO RELOCATE FROM YONKERS NY AND LAST YEAR WITH LAMSTEEL FACING FAILURE THE FMHA GUARANTEED A 600000 BRIDGE LOAN BACKED BY REAL ESTATE OWNED BY MR WEITZMAN WHICH HE SAYS ENABLED THE FIRM TO SHIFT ITS BUSINESS FROM A HOSTILE BANK TO A FRIENDLY BANK LAMSTEEL WHICH EMPLOYS 120 WORKERS MAKES SEWING TABLES USED BY THE GARMENT TRADE AND BY AUTOMOBILE MANUFACTURERS MR WEITZMAN SAYS SALES IN THE 12 MONTHS ENDED JUNE 30 EXCEEDED 10 MILLION THE FMHA ALSO HELPED CAROLYN HAMMACK AND HER MOTHER EXPAND THEIR TINY LAKESIDE GROCERY IN SITKA ALASKA INTO A FULLSERVICE 19000SQUAREFOOT STORE BY GUARANTEEING A 15 MILLION LOAN FROM NATIONAL BANK OF ALASKA BEING TWO WOMEN I'M SURE WE WERE SEEN AS A BIG RISK MS HAMMACK SAYS I DON'T THINK WE WOULD HAVE GOTTEN THAT KIND OF LOAN WITHOUT A GUARANTEE ANOTHER BENEFICIARY WAS COAL MINER LARRY BERG A GUARANTEE FROM THE AGENCY HELPED HIM AND HIS WIFE JANIE BUILD A MONEYMAKING SIDELINE INTO A THRIVING COMPANY IN ARTHUR WVA THE COUPLE STARTED THEIR BUSINESS CONVERTING THROWAWAY BARK FROM SAWMILLS TO GARDEN MULCH IN THE 1980S A LOCAL BANK LENT THEM 230000 BACKED BY THE FMHA TO BUY MULCHGRINDING AND BAGGING EQUIPMENT AND VEHICLES TODAY GRANT COUNTY MULCH INC EMPLOYS 32 FULLTIME WORKERS AND IS ALSO SELLING POTTING SOIL AND FIREWOOD THE BERGS HAVE ALSO STARTED A TRUCKING SUBSIDIARY THE FMHA'S BUSINESSLOAN PROGRAM A TINY PART OF THE AGENCY'S MULTIBILLIONDOLLAR ANNUAL LENDING OPERATION HAS A CHECKERED PAST CHARGES OF INFLUENCE PEDDLING IN THE GRANTING OF LOAN GUARANTEES DURING THE CARTER ADMINISTRATION CAUSED THE AGRICULTURE DEPARTMENT TO CANCEL A NUMBER OF GUARANTEES THE SIZE OF THE GUARANTEED LOAN FUND WAS CUT BACK SHARPLY FROM A HIGH OF 11 BILLION BY THE TIME THE CURRENT 100 MILLION LOAN GUARANTEE AUTHORITY IS PARCELED OUT TO THE 50 STATES THERE ISN'T A LOT TO GO AROUND GUARANTEES APPROVED FOR THREE VIRGINIA FIRMS A GREENHOUSE MANUFACTURER A CHILDCARE FIRM AND A PUBLIC UTILITY WILL EXHAUST THAT STATE'S 45 MILLION ALLOCATION FOR THE FISCAL YEAR ENDING SEPT 30 SAYS ROBERT BOYD DIVISION CHIEF OF FMHA'S BUSINESS AND INDUSTRIAL LOAN PROGRAM IN RICHMOND VA 9307080096 930708 ABREAST OF THE MARKET STOCKS REBOUND AS INFLATION FEARS OF PREVIOUS TWO SESSIONS SUBSIDE BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SNAPPED BACK FROM TWO DAYS OF HEAVY SELLING AS INFLATION FEARS RECEDED COMMODITY PRICES WHICH SURGED TUESDAY RATTLING BOTH STOCK AND BOND INVESTORS EASED A BIT THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 WIDELY WATCHED COMMODITIES FELL 007 TO 21723 TREASURY BOND PRICES WERE STEADY TRADERS SAID THE EASE IN THE GLOOM SENT STOCK INVESTORS HUNTING FOR BARGAINS THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2574 OR 075 TO 347567 BIG BOARD ADVANCERS LED DECLINERS 1016 TO 908 AND VOLUME TOTALED 248430000 COMPARED WITH 233310000 TUESDAY THE STANDARD & POOR'S 500 STOCK INDEX ADDED 140 TO 44283 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 061 TO 24568 AND THE DOW JONES EQUITY MARKET INDEX ROSE 118 TO 42106 BUT OBSERVERS LINKED THE GAINS MORE TO A TECHNICAL RECOVERY FROM RECENT LOSSES THAN TO ANY RENEWED OPTIMISM ABOUT STOCKS WORRIES ABOUT THE ECONOMY FRIDAY AND INFLATION JITTERS TUESDAY TOGETHER HAD KNOCKED MORE THAN 60 POINTS OFF THE DOW INDUSTRIALS WHICH HADN'T HAD AN UP SESSION SINCE JUNE 28 DESPITE THE OVERALL ADVANCE THERE WERE SEVERAL POCKETS OF WEAKNESS THE DOW JONES TRANSPORTATION AVERAGE TUMBLED 2878 TO 149929 LED BY AIRLINES AND AIR FREIGHT COMPANIES MANY TECHNOLOGY STOCKS FELL TRIPPED BY NASDAQLISTED MICROSOFT WHICH WAS DOWN 2 5/8 TO 83 3/8 TRUDE LATIMER A VICE PRESIDENT AT WAYNE GRAYSON CAPITAL ATTRIBUTED MUCH OF THE BUYING INTEREST TO SOCALLED MOMENTUM PLAYERS SHORTTERM TRADERS WHO MOVE QUICKLY INTO AND OUT OF THE MARKET BASED ON THE IMMEDIATE DIRECTION OF PRICES WE ARE GETTING SO CLOSE TO SECONDQUARTER EARNINGS REPORTS THAT MANY LONGTERM INVESTORS WILL PROBABLY WAIT FOR THE NUMBERS TO APPEAR BEFORE THEY MAKE DECISIONS TO BUY OR SELL STOCKS MS LATIMER SAID ABSENT THESE PLAYERS SHE SAID YESTERDAY'S RALLY IS LESS MEANINGFUL QUARTERLY EARNINGS REPORTS WILL BE RELEASED LATER THIS MONTH LOSSES IN TECHNOLOGY STOCKS INCLUDING MICROSOFT WHICH FELL AFTER NEGATIVE COMMENTS FROM A GOLDMAN SACHS & CO ANALYST HELPED PUSH THE NASDAQ COMPOSITE INDEX DOWN 343 TO 69879 AMONG BIG BOARDLISTED TECHNOLOGY SHARES COMPAQ COMPUTER LOST 3/8 TO 44 5/8 TEXAS INSTRUMENTS SLID 1 3/8 TO 65 7/8 INTERNATIONAL BUSINESS MACHINES LOST 1/4 TO 46 5/8 AND DIGITAL EQUIPMENT EASED 1/4 TO 39 1/4 AIRBORNE FREIGHT SHED 3 1/2 TO 21 5/8 ROBINSON HUMPHREY CO ANALYST JAMES PARKER DOWNGRADED HIS SHORTTERM RATING ON THE STOCK TO HOLD FROM BUY HE EXPECTS BUSINESS AT THE SEATTLE PACKAGE DELIVERY CONCERN TO BE DAMPED BY SLOW ECONOMIC GROWTH OVER THE YEAR UAL THE PARENT OF UNITED AIRLINES LOST 1 TO 124 3/8 DELTA AIR LINES DROPPED 3/4 TO 46 3/8 AMR PARENT OF AMERICAN AIRLINES DECLINED 1 1/2 TO 59 5/8 AND SOUTHWEST AIRLINES SHED 1 3/4 TO 42 1/8 MAJOR AIRLINES ANNOUNCED PLANS FOR FARE CUTS BUT KLM ROYAL DUTCH AIRLINES ADDED 5/8 TO 15 THE AMSTERDAM CORPORATION SAID ITS AIRLINE TRAFFIC JUMPED 15 LAST MONTH MUELLER INDUSTRIES SLUMPED 5 3/8 TO 28 5/8 AFTER THE CORPORATION SAID QUANTUM FUND AN OFFSHORE MUTUAL FUND MANAGED BY FINANCIER GEORGE SOROS WILL SLASH ITS INTEREST IN THE COMPANY QUANTUM FUND PLANS TO SELL 325 MILLION MUELLER SHARES IN A PUBLIC OFFERING CUTTING ITS STAKE IN THE WICHITA KAN METALS CONCERN TO 145 MILLION SHARES OR ABOUT 15 MERRILL LYNCH & CO SURGED 3 TO 82 7/8 A 52WEEK HIGH THE WALL STREET JOURNAL YESTERDAY PROFILED THE NEW YORK BROKERAGE FIRM'S EFFORTS TO EXPAND INTO A WIDE RANGE OF FINANCIAL SERVICES MERRILL'S DIVERSIFICATION HAS BEEN SUCCESSFUL THOUGH SIMILAR MOVES BY OTHER COMPANIES FAILED THE ARTICLE REPORTED OTHER BROKERAGE STOCKS ALSO ADVANCED MORGAN STANLEY CLIMBED 1 3/8 TO 69 1/8 BEAR STEARNS ADDED 1/4 TO 23 1/2 PAINEWEBBER GROUP EDGED UP 1/2 TO 28 7/8 AND CHARLES SCHWAB GAINED 5/8 TO 28 A SECONDARY OFFERING OF 965 MILLION SHARES OF NEWMONT MINING WAS PRICED AFTER THE MARKET CLOSED AT 5475 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS THE SHARES WERE SOLD BY FINANCIER SIR JAMES GOLDSMITH DIA HOLDINGS OVERSEAS BV A SUBSIDIARY OF GENERAL ORIENTAL INVESTMENTS SIR JAMES'S OFFSHORE INVESTMENT VEHICLE RIT CAPITAL AN AFFILIATED COMPANY AND NEWGOLD A SUBSIDIARY OF RIT THE SALE REDUCES SIR JAMES'S HOLDINGS TO 49 OF NEWMONT'S OUTSTANDING EQUITY OR ABOUT A TENTH OF HIS ORIGINAL STAKE 9307080095 930708 LETTERS TO THE EDITOR WISE STEWARDSHIP' DEVASTATED FORESTS THE COMMENTARY BY MICAH MORRISON ON YOUR JUNE 4 EDITORIAL PAGE THE FIRES NEXT TIME DEMONSTRATES THE GREATEST THREAT WE FACE IN RESOURCE MANAGEMENT TODAY NAMELY THAT WE MUST DETERMINE HOW TO MANAGE OUR NATION'S RESOURCES THROUGH A POLITICAL PROCESS MR MORRISON LAMENTS THE DECISIONS OF THE LATE '60S AND EARLY '70S TO ALLOW NATURALLY CAUSED FIRES TO BURN IN SOME OF OUR NATION'S PUBLIC LANDS HE CHRONICLES THE ACCOUNTS OF SMALL FIRES THAT GREW INTO CATACLYSMIC INFERNOS AND APPROPRIATELY SUGGESTS THAT WE SHOULD NOT DEFINE ECOSYSTEMS AS BEING ABSENT OF MANKIND BECAUSE MANKIND IS AN INSEPARABLE PART OF ECOSYSTEMS HE THEN SHOWS HIS IGNORANCE BY SUGGESTING THAT WE SHOULD IMPOSE WISE STEWARDSHIP STANDARDS TO ENVIRONMENTAL MANAGEMENT ISSUES WHAT HE FAILS TO REALIZE IS THAT WE LIVED WITH WISE STEWARDSHIP AND DOUSED EVERY FOREST FIRE FOR NEARLY 70 YEARS BEFORE WE DECIDED TO CHANGE THE POLICY BECAUSE OF THIS WISE STEWARDSHIP FOREST FLOORS WERE ALLOWED TO ACCUMULATE 70 YEARS OF ROTTING MATERIAL AND UNDERGROWTH THAT FUEL FOREST FIRES AND CAUSE THE HUGE FIRES WE HAVE SEEN AND WILL CONTINUE TO SEE FOR SOME TIME SPECIES THAT REQUIRE FIRE FOR REGENERATION WERE THWARTED IN THEIR NATURAL DEVELOPMENT BY VIRTUE OF THIS HUMAN WISDOM THE POINT IS WISE STEWARDSHIP THAT INTERFERES WITH PROCESSES OF NATURE IS SENSELESS I WAS RAISED ON A COW RANCH IN WHAT IS NOW A WILDERNESS AREA IN CENTRAL ARIZONA MY FAMILY LIVED WITH THE REALWORLD IMPACT OF POLICIES IMPOSED BY FEDERAL AGENCIES STAFFED WITH PEOPLE WHO HAD ABSOLUTELY NO STAKE IN THE OUTCOME OF THOSE POLICIES WE CHEERED THE POLICY CHANGE ALLOWING NATURALLY CAUSED FOREST FIRES TO BURN WE KNEW THEN THAT IT WOULD TAKE YEARS OF FIRES SOME VERY DESTRUCTIVE BEFORE WE COULD EXPECT TO RETURN TO THE DAYS WHEN FOREST FIRES WERE RELATIVELY HARMLESS EVENTS HOWEVER IT WAS AN IMPORTANT FIRST STEP AND WE HOPED THAT THE POLICY WOULD NOT CHANGE AGAIN AT THE WHIM OF WASHINGTON BUREAUCRATS POLITICS IS NOT THE ANSWER TO RESOURCE MANAGEMENT AND ENVIRONMENTAL ISSUES INSTEAD OF CONSULTING EXPERTS TO COME UP WITH POLICY DECISIONS PRESIDENT CLINTON NEEDS LEGISLATION THAT REPLACES POLITICIANS AND FEDERAL AGENCIES AS ABSOLUTE RULERS OF POLICY BUT ALLOWS THEM TO CONTINUE AS PARTICIPANTS 9307080094 930708 MONEYFUND YIELDS IN TAXABLE CATEGORY FLAT IN LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE UNCHANGED IN THE LATEST WEEK WHILE ASSETS ROSE IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD REMAINED AT 267 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 603 TAXABLE FUNDS GREW BY 318 BILLION TO 47233 BILLION THE NEWSLETTER REPORTED INDIVIDUAL INVESTORS ACCOUNTED FOR 308 BILLION OF THE INFLOW AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 60 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS STAYED AT 263 ACCORDING TO MONEY FUND REPORT THE AVERAGE 30DAY SIMPLE YIELD INCHED UP TO 263 FROM 262 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 266 THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE FUNDS EASED TO 178 FROM 184 IN THE LATEST WEEK THE NEWSLETTER SAID THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 247 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 258 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 326 TAXEXEMPT FUNDS GREW BY 226 BILLION TO 1013 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY LENGTHENED BY NINE DAYS TO 64 DAYS WHICH WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED TO SEASONAL FACTORS 9307080093 930708 REVIEW & OUTLOOK EDITORIAL ASIDES STROKE PENALTY GOLF CRAZY TOOK ON A NEW MEANING IN ARIZONA THIS SPRING A STATE APPELLATE COURT EFFECTIVELY RULED THAT COURSE OWNERS MUST CARRY LIABILITY INSURANCE AND VEHICLE REGISTRATIONS FOR CARTS THAT ARE DRIVEN ON OR ACROSS A PUBLIC ROAD THE WEEKLY NEW TIMES REPORTS A SUN CITY ACCIDENT APPARENTLY CAUSED BY A NEGLIGENT GOLFER LED TO A 200000 JUDGMENT LAID AT THE DOORSTEP OF A DEL WEBB UNIT THE DEEPPOCKETS DEVELOPER THE LIKELY FALLOUT IF THE STATE SUPREME COURT UPHOLDS THE FINDING IS THAT RENTAL CARTS MUST BE HANDLED LIKE RENTAL CARS AT A COST OF MORE TIME AND MONEY TO ALL INVOLVED 9307080092 930708 CIRCUIT CITY STORES JUNE SALES RICHMOND VA CIRCUIT CITY STORES INC REPORTED JUNE SALES INCREASED 26 TO 2864 MILLION FROM 2275 MILLION A YEAR EARLIER AND SAID SALES AT STORES OPEN MORE THAN A YEAR ROSE 6 FISCAL YEARTODATE SALES COVERING THE PERIOD FROM MARCH 1 TO JUNE 30 ROSE 24 TO 109 BILLION SALES OF STORES OPEN MORE THAN A YEAR ROSE 8 THE RETAILER OF BRANDNAME CONSUMER ELECTRONICS AND APPLIANCES OPERATES IN 27 STATES 9307080091 930708 POLITICS & POLICY EPA CHIEF CAROL BROWNER'S FIRST MONTHS IN OFFICE ECHO THE APPROACH OF HER BUSHERA PREDECESSOR BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DURING THE 1992 CAMPAIGN CANDIDATE BILL CLINTON RAILED AGAINST THE BUSH ADMINISTRATION AS AN ENVIRONMENTAL DISASTER BUT FIVE MONTHS INTO HIS PRESIDENCY THE AGENCY BEARING PRIMARY RESPONSIBILITY FOR CLEAN AIR WATER AND LAND DOESN'T LOOK NOTICEABLY DIFFERENT FROM THE BUSH DAYS THAT'S GOOD NEWS FOR BUSINESS PEOPLE FEARFUL THAT A DEMOCRATIC ADMINISTRATION WOULD MEAN AN IMMEDIATE BLIZZARD OF NEW RULES AND REGULATIONS IT IS DISAPPOINTING TO ENVIRONMENTAL ACTIVISTS WHO EXPECTED MUCH MORE FROM CAROL BROWNER THE ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR WHO CAME INTO OFFICE WITH MR CLINTON ONE OF THE INSIDE JOKES AT THE EPA IS BABBITT NOT' SAYS HUGH KAUFMAN AN EPA HAZARDOUSWASTE SPECIALIST AND WHISTLEBLOWER UNLIKE BRUCE BABBITT WHOM ENVIRONMENTALISTS JUDGED TOO VALUABLE AS INTERIOR SECRETARY TO LOSE TO THE SUPREME COURT MS BROWNER HAS YET TO LAY OUT A CLEAR AGENDA DISTINCTLY DIFFERENT FROM THAT OF THE BUSH ADMINISTRATION MOREOVER WHILE THE CLINTON ADMINISTRATION HAS MADE SOME SIGNIFICANT MOVES IN ENVIRONMENTAL POLICY SUCH AS PROPOSING TO LIMIT THE NORTHWEST TIMBER HARVEST AND PARTLY SET ASIDE ACREAGE IN ANCIENT FOREST RESERVES AND SIGNING THE BIODIVERSITY TREATY THAT PRESIDENT BUSH SPURNED NONE OF THESE HAS MUCH TO DO WITH THE EPA AND MS BROWNER DIDN'T TAKE THE LEAD ON ANY OF THEM RATHER THEY LARGELY REFLECT THE LABORS OF VICE PRESIDENT AL GORE WHITE HOUSE ENVIRONMENTAL POLICY CHIEF KATHLEEN MCGINTY AND KEY OFFICIALS AT THE INTERIOR AND STATE DEPARTMENTS MEANWHILE THE SINGLE MOST IMPORTANT PIECE OF ENVIRONMENTAL LEGISLATION LIKELY TO COME BEFORE CONGRESS THIS YEAR REAUTHORIZATION OF THE CLEAN WATER ACT WAS INTRODUCED BY DEMOCRATIC SEN MAX BAUCUS OF MONTANA AND GOP SEN JOHN CHAFFEE OF RHODE ISLAND WITH ALMOST NO HIGHLEVEL INPUT FROM THE EPA THEY JUST HAVEN'T BEEN ABLE TO GIVE US THEIR THOUGHTS COMPLAINS SEN CHAFFEE EPA CAREER STAFFERS DID PARTICIPATE IN DISCUSSIONS THAT LED TO THE DRAFTING OF THE BILL HE SAYS BUT MS BROWNER HASN'T YET SIGNED OFF ON ANY OF THE BILL'S PARTICULARS IN FAIRNESS TO MS BROWNER MANY OF HER PROBLEMS AT EPA AREN'T ENTIRELY SELFCREATED FOR EXAMPLE THE EPA'S BUDGET WIDELY BELIEVED INADEQUATE TO TACKLE THE AGENCY'S GROWING RESPONSIBILITIES WILL DECREASE COMPARED WITH LAST YEAR'S APPROPRIATION UNDER PRESIDENT BUSH BECAUSE 916 MILLION IN FUNDING MOSTLY FOR WASTEWATER TREATMENT WAS LOST WHEN IT WAS TRANSFERRED TO A JOBSTIMULUS BILL THAT FAILED TO WIN PASSAGE THE FUNDING DROP IS A SIGNIFICANT SETBACK SAYS AL MEYERHOFF A SENIOR ATTORNEY WITH THE NATURAL RESOURCES DEFENSE COUNCIL THOUGH ADMINISTRATION OFFICIALS SAY THEY WILL TRY TO MAKE UP FOR IT IN NEXT YEAR'S BUDGET MS BROWNER HAS ALREADY HAD OCCASION TO DEMONSTRATE TOUGHNESS IN MAY SHE ANNOUNCED A DE FACTO MORATORIUM ON NEW HAZARDOUSWASTE INCINERATORS WHILE THE AGENCY REVIEWS THE SAFETY OF EXISTING FACILITIES SHE ALSO FACED DOWN CALIFORNIA AND OTHER STATES THAT WERE CONTEMPLATING DEFIANCE OF CLEAN AIR ACT BY THREATENING A CUTOFF OF HIGHWAY FUNDS AND SHE PLAYED A KEY BACKSTAGE ROLE MAKING SURE THAT THE TIMBER PROPOSAL INCLUDED A PROVISION TO LIMIT BUILDUP OF LOGGINGRELATED SEDIMENT IN THE PACIFIC NORTHWEST'S RIVERS PRIVATELY THOUGH SOME ENVIRONMENTALISTS WORRY THAT SHE HAS NEITHER SUFFICIENT CLOUT WITHIN THE CLINTON ADMINISTRATION NOR SUFFICIENT MANAGEMENT SKILL WITHIN HER OWN AGENCY TO TACKLE THE MOST CONTENTIOUS ISSUES BEFORE BECOMING EPA ADMINISTRATOR MS BROWNER 37 YEARS OLD SERVED JUST UNDER TWO YEARS AS HEAD OF FLORIDA'S DEPARTMENT OF ENVIRONMENTAL REGULATION PRIOR TO THAT SHE WAS A LEGISLATIVE AIDE TO THENSEN GORE AND TO FLORIDA SEN NOW GOV LAWTON CHILES SHE DOES NOT HAVE THE DEPTH AND BREADTH OF GOVERNMENT MANAGEMENT EXPERIENCE COMPLAINS MR KAUFMAN HER PUTATIVE SUBORDINATE PHILIP ANGELL AN ASSISTANT TO WILLIAM RUCKELSHAUS CHAIRMAN OF BROWNINGFERRIS INDUSTRIES INC AND A FORMER EPA ADMINISTRATOR TAKES A FAR KINDLIER VIEW PEOPLE ARE GETTING THEIR FEET ON THE GROUND HE SAYS LEARNING THE INS AND OUTS OF THE AGENCY MR ANGELL SAYS HE EXPECTS PROBLEMS TO BE SOLVED NOW WITH FAR LESS FINGERPOINTING THAN IN THE PAST BECAUSE PARTISANSHIP NO LONGER DIVIDES THE ADMINISTRATION FROM CONGRESS HE ANTICIPATES THE RESULT WILL BE A LOT MORE HONEST ASSESSMENT ABOUT HOW THESE LAWS ARE IMPLEMENTED PHILOSOPHICALLY MS BROWNER DOESN'T SEE HERSELF AS THAT FAR REMOVED FROM WILLIAM REILLY WHO HEADED THE AGENCY UNDER PRESIDENT BUSH AND WHOM ENVIRONMENTALISTS GENERALLY CREDIT WITH DOING THE BEST POSSIBLE JOB IN SOMETIMES DIFFICULT CIRCUMSTANCES IS THE ABSENCE OF A WHITE HOUSE COUNCIL ON COMPETITIVENESS WHICH FREQUENTLY BLOCKED MR REILLY HER ONLY MAJOR DEPARTURE FROM THE BUSH ADMINISTRATION EPA THAT WOULD NOT BE AN INSIGNIFICANT CHANGE SHE ANSWERS ONE OF MS BROWNER'S PRINCIPAL HANDICAPS IS THAT THE WHITE HOUSE HAS MOVED AT A SNAIL'S PACE TO APPROVE HER CHOICES FOR FOUR KEY ASSISTANT ADMINISTRATORS WHO OVERSEE AIR WATER SOLID WASTE AND PESTICIDES THOSE ARE THE GUTS OF THE EPA OBSERVES THOMAS JORLING COMMISSIONER OF NEW YORK STATE'S DEPARTMENT OF ENVIRONMENTAL CONSERVATION THE NOMINATION OF CALIFORNIA PEDIATRICIAN LYNN GOLDMAN TO BE PESTICIDE CHIEF WAS FINALLY ANNOUNCED LAST WEEK BUT THE WHITE HOUSE IS STILL SITTING ON THE OTHER THREE NOMINATIONS ROBERT PERCIASEPE SECRETARY OF MARYLAND'S DEPARTMENT OF THE ENVIRONMENT IS ON THE VERGE OF BEING NAMED ASSISTANT ADMINISTRATOR FOR WATER ACCORDING TO AN EPA OFFICIAL THE DELAYED APPROVAL OF DR GOLDMAN'S NOMINATION MEANWHILE HAS SLOWED THE EPA'S MOVEMENT TOWARD ADOPTING BADLY NEEDED NEW LEGISLATIVE AND REGULATORY GUIDELINES FOR PESTICIDES A 1992 FEDERAL COURT DECISION REQUIRING THE EPA TO FOLLOW TO THE LETTER THE DELANEY CLAUSE A STRINGENT RISK STANDARD WIDELY BELIEVED TO BE UNWORKABLE IN THE 1990S PUTS PRESSURE ON MS BROWNER TO QUICKLY DEVISE A NEW SAFETY STANDARD FOR PESTICIDES JUST YESTERDAY THE EPA TO COMPLY WITH THE COURT DECISION ANNOUNCED THAT IT WOULD LIMIT USE OF FOUR PESTICIDES BENOMYL MANCOZEB PHOSMET AND TRIFLURALIN EVEN THOUGH MS BROWNER SAID IN AN ACCOMPANYING STATEMENT THAT DATA SHOW THE PESTICIDES POSE ONLY A NEGLIGIBLE RISK TO PUBLIC HEALTH MS BROWNER WAS ALSO RECENTLY PRODDED BY KEY CONGRESSMEN TO GET MOVING ON WHAT IS SURELY THE TOUGHEST TASK BEFORE HER RETHINKING THE SUPERFUND LAW WHICH VIRTUALLY ALL SIDES AGREE IS FAILING TO PROVIDE SPEEDY CLEANUP OF THE NATION'S WORST HAZARDOUSWASTE SITES THUS FAR THOUGH SHE IS NONCOMMITTAL ABOUT HOW OR WHEN SHE WILL TACKLE THE ISSUE IT MAY BE THAT WE'LL WRITE IT SHE SAYS OR IT MAY BE THAT WE'LL WORK TOGETHER WITH CONGRESS 9307080090 930708 PROPERTY TRUST OF AMERICA SANTA FE NM PROPERTY TRUST OF AMERICA SAID IT ACQUIRED NINE MULTIFAMILY PROPERTIES AND ADDITIONAL LAND IN THE SOUTHWEST FROM SELLERS IT DIDN'T IDENTIFY THE COMPANY SAID IT WILL SPEND 756 MILLION FOR ACQUISITION AND DEVELOPMENT OF THE REAL ESTATE THE COMPANY SAID THE LAND WILL BE USED TO DEVELOP TWO ADDITIONAL MULTIFAMILY PROPERTIES IN THE SOUTHWEST THE PROPERTIES INCLUDE 2361 UNITS IN TEXAS COLORADO NEW MEXICO AND ARIZONA 9307080089 930708 MARKETING & MEDIA MATTEL RETAINS EXPERT TO STUDY UK INCIDENT WITH BARBIE GLITTER EL SEGUNDO CALIF MATTEL INC SAID IT RETAINED AN EXPERT TO INVESTIGATE AN INCIDENT IN THE UNITED KINGDOM IN WHICH ONE CHILD RECEIVED HOSPITAL TREATMENT AFTER GLITTER LOTION FOR A BARBIE DOLL GOT INTO THE CHILD'S EYE THE TOY MAKER SAID IT UNDERSTANDS THE CHILD IS FINE BUT THE WOOLWORTH CHAIN IN THE UK A UNIT OF KINGFISHER PLC WHERE THE GLITTER BEACH BARBIE DOLL WAS PURCHASED HAS PULLED THE PRODUCT FROM SHELVES PENDING AN INVESTIGATION THERE MATTEL SAID A MATTEL SPOKESMAN SAID IT HAS SOLD LITERALLY MILLIONS OF THE PRODUCT IN MANY COUNTRIES INCLUDING THE US SINCE ITS LAUNCH IN JANUARY THE COMPANY SAYS IT HASN'T RECEIVED ANY OTHER COMPLAINTS THE GLITTER BEACH BARBIE COMES WITH A SMALL BOTTLE OF LOTION THAT CHILDREN CAN SPREAD ON THEMSELVES AND THE DOLL NOTING THAT THE PRODUCT UNDERWENT RIGOROUS TESTING BEFORE ITS LAUNCH THE SPOKESMAN SAID THE COMPANY BELIEVES THE PRODUCT IS ABSOLUTELY SAFE NONETHELESS HE SAID WE'RE ANXIOUS TO LEARN EVERYTHING ABOUT THE INCIDENT WE CAN 9307080088 930708 INTERNATIONAL MEXICAN US ENVIRONMENTAL GROUPS PROPOSE COMPROMISE IN NAFTA LOGJAM BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE NORTH AMERICAN FREE TRADE AGREEMENT UNDER SIEGE BY A LAWSUIT FROM MAJOR ENVIRONMENTAL GROUPS IS GETTING SUPPORT FROM UNLIKELY SOURCES LOCAL ENVIRONMENTALISTS ON THE USMEXICAN BORDER SEVEN MEXICAN AND US ENVIRONMENTAL GROUPS AT THE RAPIDLY INDUSTRIALIZING BORDER ARE PROPOSING A COMPROMISE SIDE ACCORD TO NAFTA THAT ADVOCATES FINES AGAINST INDIVIDUAL POLLUTERS RATHER THAN TOUGHER TRADE SANCTIONS MEXICAN AND CANADIAN OFFICIALS CLOSE TO THE NEGOTIATIONS SAY SUCH A PROPOSAL COULD BREAK THE LOGJAM OF CONCERNS IN SIDEPACT NEGOTIATIONS WHICH RESUME TODAY IN MEXICO CITY BUT IT'S FAR FROM CERTAIN THE US WILL AGREE TO THE SUGGESTIONS PRESIDENT CLINTON HAS PROMISED TOUGH ENFORCEMENT MEASURES HE ALSO REALIZES THAT AN INCREASINGLY HOSTILE CONGRESS MAY REJECT NAFTA UNLESS THE SIDE DEALS ASSURE THAT THE US CAN RESORT TO TRADE SANCTIONS IN THE LAST TALKS US NEGOTIATORS PUSHED FOR TRADE SANCTIONS WHICH COULD INVOLVE CONVENTIONAL TARIFFS AND RESTRICTIONS ON PRODUCT FLOWS FOR PERSISTENT VIOLATIONS MEXICO AND CANADA HAVE REJECTED SUCH SANCTIONS AS TOO SWEEPING PRESIDENT CLINTON HAS SAID HE WON'T SUBMIT NAFTA TO CONGRESS FOR RATIFICATION UNLESS EFFECTIVE SIDE PACTS ARE REACHED MEXICO IS IN A RISKY SITUATION IN TERMS OF COMMERCE AND THE ENVIRONMENT SAID LAURA DURAZO WHO LEADS AN ENVIRONMENTAL GROUP IN TIJUANA A BORDER CITY FILLED WITH POLLUTING FACTORIES AN EXTREME POSITION OF SANCTIONS THAT WE MAY HAVE WANTED IN THE BEGINNING MAY TURN AGAINST THE MEXICAN ECONOMY ENVIRONMENTALISTS NOW ARE PLAYING A LEADING ROLE IN THE NAFTA DEBATE PROSPECTS FOR NAFTA'S PASSAGE WERE THROWN INTO PERIL LAST WEEK WHEN A US FEDERAL DISTRICT JUDGE RULED THAT AN ENVIRONMENTAL IMPACT STATEMENT MUST BE PREPARED BEFORE US RATIFICATION THE CLINTON ADMINISTRATION HAS APPEALED BUT A DECISION ISN'T EXPECTED FOR AT LEAST A MONTH THE LAWSUIT WAS FILED BY THE WASHINGTON OFFICES OF PUBLIC CITIZEN THE SIERRA CLUB AND FRIENDS OF THE EARTH BUT THE ENVIRONMENTAL MOVEMENT IS SPLIT ON NAFTA THE POSITION OF THE BORDER GROUPS REFLECTS THAT DIVISION WE ARE BACKING AWAY FROM THE HARD NOTION THAT MEXICO SHOULD BE PENALIZED FOR THE ASYMMETRY IN ENVIRONMENTAL ENFORCEMENT SAID GEOF LAND PROJECT COORDINATOR WITH THE BORDER ECOLOGY PROJECT IN BISBEE ARIZ WE WOULD LIKE FINES RATHER THAN SANCTIONS SO THAT THE ENTIRE COUNTRY OF MEXICO ISN'T BEING HELD ACCOUNTABLE FOR THE ACTIONS OF ONE POLLUTER SEPARATELY THE INTERAMERICAN DEVELOPMENT BANK IN WASHINGTON DC SAID IT IS CONSIDERING FORMING A TRUST FUND TO CLEAN UP POLLUTION AND BUILD UP INFRASTRUCTURE AT THE 2000MILE USMEXICAN BORDER ONE PERSON CLOSE TO THE CLINTON ADMINISTRATION SAYS THE ASSISTANCE FUND MAY BE COMBINED WITH A PROPOSAL TO FORM A NORTH AMERICAN DEVELOPMENT BANK WITH POTENTIAL CAPITAL OF 10 BILLION AND THE ABILITY TO ISSUE BONDS THE PROPOSALS ARE VIEWED AS FURTHER MEANS OF DEFUSING NAFTA OPPOSITION AND MEXICO HAS ALREADY PUSHED THE IDEA OF A FUND AT THE LAST NEGOTIATIONS IT ISN'T AN IDEA WE'LL WITHDRAW SAYS A MEXICAN NEGOTIATOR THIS WEEK'S NEGOTIATING SESSION WILL BE CRUCIAL FOR MEXICO MEXICO'S PRESIDENT CARLOS SALINAS DE GORTARI IS EAGER TO SEE NAFTA SOLIDIFY HIS ECONOMIC REFORMS AND HIS RULING PARTY'S CHANCES IN NEXT SUMMER'S PRESIDENTIAL ELECTIONS IF RATIFIED BY THE US CONGRESS THIS YEAR NAFTA WOULD BE IMPLEMENTED ON JAN 1 1994 THUS ANALYSTS SAY NEGOTIATORS MUST REACH COMPROMISE PACTS OR COME CLOSE TO CRAFTING A COMMUNAL TEXT AT THIS WEEK'S SESSIONS TO MEET MR SALINAS'S TIMETABLE AND ASSURE THE FLOW OF FOREIGN INVESTMENT TO AN ECONOMY THAT HAS GROWN SLUGGISH BUT US NEGOTIATORS DOUBT THEY CAN REACH A DEAL BY THEN AND SAY THEY EXPECT THREE OR FOUR MORE NEGOTIATING SESSIONS IT IS ALSO UNCLEAR IF THE ENVIRONMENTAL LAWSUIT IN THE US WHICH PUTS THE CLINTON ADMINISTRATION ON THE DEFENSIVE WILL STIFFEN THE RESOLVE OF MEXICO AND CANADA TO RESIST US DEMANDS NEGOTIATIONS ARE ALSO UNDER WAY FOR A LABOR SIDE PACT ACCORDING TO THE BORDER GROUPS' PLAN PENALTIES AGAINST POLLUTERS SHOULD BE LINKED TO THE COSTS OF CLEANUP THE GROUPS' LEADERS SAY TRADE SANCTIONS COULD BE USED AS A LAST RESORT IN SOME CASES THE PROPOSED NORTH AMERICAN COMMISSION ON THE ENVIRONMENT ALREADY DISCUSSED BY NEGOTIATORS ALSO SHOULD BE CHARGED WITH DETERMINING WHETHER COMPLAINTS ARE DISGUISED ATTEMPTS TO SUPPRESS COMMERCE OR LEGITIMATE ENVIRONMENTAL PROBLEMS SAY THE GROUPS SUCH A COMPROMISE ISN'T LIKELY TO CHEER US INDUSTRY BUT TRADE SANCTIONS ADVOCATED BY SOME US ENVIRONMENTAL AND LABOR ACTIVISTS COULD HAVE AN EVEN MORE DELETERIOUS EFFECT BY RESTRICTING TRADE FLOW FOR ENTIRE PRODUCTS RATHER THAN COMPANIES FURTHERMORE MEXICO IS EXPECTED TO SUPPLANT JAPAN AS THE US'S SECOND LARGEST TRADING PARTNER IN THE NEXT YEAR OR TWO SAYS A RECENT BANKERS TRUST REPORT 9307080087 930708 CORPORATE FOCUS INTERGRAPH PAYS HIGH PRICE TO DIVERSIFY UPDATE IMAGE COMPANY SEES WIDER THAN EXPECTED LOSS FOR 3RD CONSECUTIVE QUARTER BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER YEARS IN THE SHADOWS OF THE CORPORATE COMPUTER BUSINESS INTERGRAPH CORP IS GROPING ITS WAY INTO THE LIGHT THE HUNTSVILLE ALA MAKER OF ADVANCED ENGINEERING SOFTWARE AND WORKSTATIONS BRUISED BY WEAK EARNINGS AND A TUMBLING STOCK PRICE IS SCRAPPING THE GAME PLAN THAT HAS MADE IT THE BIGGEST COMPUTERAIDED DESIGN SOFTWARE HOUSE IN NORTH AMERICA PRODDED BY INVESTORS WHO SAY THE FIRM HAS MISSED ONE OF COMPUTING'S HOTTEST TRENDS THE COMPANY IS ABANDONING ITS RELIANCE ON HOMEMADE PROPRIETARY TECHNOLOGY AND EMBRACING THE OPEN INDUSTRYSTANDARD SYSTEMS THAT HAVE BECOME ALL THE RAGE IN THE PERSONAL COMPUTER AND WORKSTATION BUSINESS INTERGRAPH NEVER A HOUSEHOLD HIGHTECH NAME HAS RECENTLY ANNOUNCED JOINT DEVELOPMENT PROJECTS WITH TECHNOLOGY LEADERS MICROSOFT CORP AND SUN MICROSYSTEMS INC AND FOR THE FIRST TIME IS MAKING THE ROUNDS OF THE COMPUTER TRADESHOW CIRCUIT TO BOOST ITS NAME IDENTIFICATION EVEN PUBLICITYSHY COMPANY FOUNDER AND CHAIRMAN JAMES W MEADLOCK WHO STARTED THE COMPANY 25 YEARS AGO WITH A GROUP OF BUDDIES WORKING ON PERSHING MISSILE GUIDANCE SYSTEMS HAS STARTED GRANTING INTERVIEWS WITH TRADEPRESS EDITORS AND WORKING TO LURE BACK WALL STREET INVESTORS WHO INCREASINGLY HAVE LOST INTEREST IN THE COMPANY ALL OF THIS IS AN ABRUPT ABOUTFACE SAYS ROBERT ANASTASI A TECHNOLOGY ANALYST AT ROBINSON HUMPHREY IN ATLANTA THEY ARE FINALLY OPENING THIS COMPANY UP INTERGRAPH'S AWAKENING THOUGH HAS COME AT A VERY HIGH COST THE COMPANY YESTERDAY SAID IT EXPECTS TO REPORT A NET LOSS FOR THE THIRD CONSECUTIVE QUARTER MOREOVER THE EXPECTED LOSS OF BETWEEN 38 CENTS AND 43 CENTS A SHARE FOR THE QUARTER ENDED JUNE 30 IS ABOUT THREE TIMES WORSE THAN MOST ANALYSTS HAD ANTICIPATED DURING LAST YEAR'S SECOND QUARTER INTERGRAPH REPORTED NET INCOME OF 29 MILLION OR SIX CENTS A SHARE IN ADDITION INTERGRAPH WARNED THAT ITS REVENUE WHICH FELL 2 IN 1992 WILL DROP AS MUCH AS 14 IN THE SECOND QUARTER TO BETWEEN 248 MILLION AND 253 MILLION FROM 289 MILLION THIS TIME LAST YEAR SYSTEM ORDERS ARE EXPECTED TO TOTAL ABOUT 160 MILLION DOWN FROM 206 MILLION LAST YEAR NEWS OF THE LOWERTHANEXPECTED RESULTS CAME AFTER THE CLOSE OF THE MARKET YESTERDAY INTERGRAPH SHARES WHICH HAVE DROPPED MORE THAN 25 SINCE THE FIRST OF THE YEAR CLOSED DOWN 25 CENTS TO 975 A SHARE IN LATE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET MR MEADLOCK AND OTHER COMPANY EXECUTIVES SAY THE DISAPPOINTING NUMBERS ARE THE PRICE OF A CORPORATE TURNAROUND THEY SAY INTERGRAPH IS CAUGHT IN A SORT OF PRODUCT LIMBO AS IT SHIFTS ITS PRODUCT LINE INTO THE MAINSTREAM AND INCREASINGLY CUTTHROAT COMPUTER WORKSTATION AND SOFTWARE BUSINESS WE DECIDED THIS IS WHERE THE WORLD IS GOING AND WE BETTER GET ON THAT TRAIN SAID MR MEADLOCK 59 YEARS OLD THIS IS A CHANGE OF DIRECTION TO TRY TO GET US INTO THE OPEN WORLD AND WHAT AN ODD WORLD IT IS FOR ALABAMA'S INTERGRAPH FOR MOST OF ITS LIFE THE COMPANY'S STRATEGY HAS BEEN BASED ON THE PREMISE THAT ITS WAY IS BEST AT LEAST WHEN IT COMES TO TECHNOLOGY SO INTERGRAPH HAS DEVELOPED ITS OWN SOFTWARE PRINTED ITS OWN BROCHURES EVEN MADE ITS OWN WORKSTATION MACHINES TO RUN THE SOFTWARE THAT IS AT THE HEART OF THE COMPANY THE IDEA WAS THAT INTERGRAPH HARDWARE BASED ON A PROPRIETARY MICROPROCESSOR CALLED THE CLIPPER WAS BESTSUITED TO SHOW OFF THE ELEGANCE OF THE COMPANY'S SOFTWARE USED PRIMARILY BY ELECTRICAL AND MECHANICAL ENGINEERS IN THEIR DESIGN WORK THE CLIPPERBASED MACHINES WHICH AREN'T RELATED TO THE CONTROVERSIAL GOVERNMENT TELEPHONE ENCRYPTION DEVICE OF THE SAME NAME ARE ALSO USED BY CITY WORKERS FOR MUNICIPAL MAPS BY ARCHITECTS IN DESIGNING HOUSES AND BY DETROIT AUTO ENGINEERS TROUBLE IS INTERGRAPH'S CLIPPER MACHINES COULD DO LITTLE ELSE THE SYSTEM WAS ESSENTIALLY INCOMPATIBLE WITH OTHER PEOPLE'S PRODUCTS MEANING THAT INTERGRAPH WORKSTATIONS WOULD RUN MOSTLY INTERGRAPH SOFTWARE AND THAT THE COMPANY'S SUITE OF SOFTWARE PRODUCTS WOULD RUN PRIMARILY ON COMPANY MACHINES THE RESULT CUSTOMERS WERE FORCED TO BUY INTERGRAPH HARDWARE EVEN IF THEY HAD OTHER USES FOR A WORKSTATION COMPUTER BEYOND ENGINEERING DESIGN WE WERE REQUIRING PEOPLE TO HAVE TWO TUBES ON THEIR DESK SAID JIM RUESTER A COMPANY SPOKESMAN IN RECENT YEARS AS MOST OF THE REST OF THE COMPUTER BUSINESS HAS RALLIED AROUND STANDARDS LIKE MICROSOFT'S OPERATING SYSTEM SOFTWARE AND INTEL CORP'S MICROPROCESSOR INTERGRAPH'S CUSTOMERS HAVE GROWN INCREASINGLY IMPATIENT THAT PROBLEM COMBINED WITH A GENERALLY SLUGGISH WORKSTATION MARKET HAS HELPED FUEL THE COMPANY'S PAINFUL QUEST TO REMAKE ITSELF THERE HAS BEEN A LOT OF CRITICISM FROM ANALYSTS THAT INTERGRAPH IS TOO TIED TO ITS OWN HARDWARE SAID P MARTIN RESSINGER AN ANALYST AT DUFF & PHELPS IN CHICAGO IT HAS HAD A LITTLE TROUBLE COMPETING NOW THE COMPANY'S HIGHTECH SNOBBERY IS GONE INTERGRAPH HAS BET THE COMPANY ON MICROSOFT'S COMING WINDOWS NT OPERATING SYSTEM INTERGRAPH LAST YEAR ANNOUNCED PLANS TO PORT WINDOWS NT TO THE CLIPPER EMBRACING A LONGDELAYED AND CONTROVERSIAL MICROSOFT SYSTEM VYING TO BE THE NEXT INDUSTRY STANDARD FOR HIGHEND COMPUTING BY THE END OF NEXT YEAR INTERGRAPH SAID IT WILL HAVE 300 SOFTWARE APPLICATIONS RUNNING ON NT MAKING IT THE BIGGEST NT DEVELOPMENT SITE OUTSIDE OF MICROSOFT'S REDMOND WASH BASE ONCE THE NT WORK IS COMPLETE INTERGRAPH SOFTWARE WILL BE ABLE TO RUN ON MOST NT MACHINES WHETHER THEY'RE MADE BY INTERGRAPH OR NOT A SIMILAR SHAKEUP IS UNDER WAY ON THE WORKSTATION SIDE WHICH CURRENTLY COMPRISES ABOUT TWOTHIRDS OF INTERGRAPH'S BUSINESS THE COMPANY YESTERDAY SAID IT HAS AGREED TO WORK WITH SUN IN DEVELOPING A NEW 64BIT SPARC MICROPROCESSOR WHICH ULTIMATELY WILL REPLACE INTERGRAPH'S WORKHORSE CLIPPER CHIP EVENTUALLY BOTH COMPANIES WILL SELL MACHINES BASED ON THE CHIP MEANING THAT INTERGRAPH WILL BE COMPETING FOR BUSINESS AGAINST THE COUNTRY'S BESTKNOWN WORKSTATION VENDOR INTERGRAPH ALSO SAID IT WILL RUN THE NT OPERATING SYSTEM ON ITS NEW SPARCBASED WORKSTATIONS MARKING THE FIRST TIME THAT NT WILL BE AVAILABLE ON THE SPARC ARCHITECTURE WHILE ANALYSTS PRAISE INTERGRAPH FOR ITS NEW COMMITMENT TO HIGHTECH DEMOCRACY IT EVEN HAS INTRODUCED A MACHINE BASED ON THE POPULAR INTEL PC ARCHITECTURE THEY NOTE THAT CHANGING OPERATING SYSTEMS AND COMPUTER CHIPS WON'T BE ENOUGH TO PULL THE COMPANY OUT OF ITS FUNK INTERGRAPH'S MAIN CONTRIBUTION TO THE WORLD IS STILL ITS SOFTWARE THEY SAY AND THE COMPANY IS HAVING TO FIGHT MIGHTILY TO KEEP ITS FOOTING A TOUGH TEAM OF COMPETITORS INCLUDING PARAMETRIC TECHNOLOGY CORP AND AUTODESK INC HAS SNAGGED SOME CORE INTERGRAPH DESIGN CUSTOMERS EVEN AS HIGHERPOWERED PERSONAL COMPUTERS ARE EDGING IN ON THE COMPANY'S WORKSTATION BUSINESS ANALYSTS AREN'T EXPECTING MUCH IN THE WAY OF A TURNAROUND FROM THE COMPANY IN 1993 AT BEST MOST EXPECT THE COMPANY TO BREAK EVEN THIS YEAR WITH A SLIGHT IMPROVEMENT IN 1994 AS THE COMPANY'S DIVERSIFICATION DRIVE BEGINS TO PAY OFF THIS YEAR CAN'T BE A GOOD YEAR SAYS ROBINSON HUMPHREY'S MR ANASTASI THESE THINGS ARE ALWAYS LONGER AND MORE PAINFUL THAN ANYONE HAD ORIGINALLY THOUGHT 9307080086 930708 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 BURLINGTON NORTHERN INC 150 MILLION OF DEBENTURES DUE JULY 15 2023 PRICED AS 75S AT 9853 TO YIELD 7625 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 0945 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED BAA1 BY MOODY'S INVESTORE SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK 200 MILLION OF NOTES DUE JULY 20 1998 PRICED AT PAR TO YIELD 524 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR ONE YEAR AND WAS PRICED AT A SPREAD OF 02 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GEICO CORP 150 MILLION OF DEBENTURES DUE JULY 15 2023 PRICED AS 735S AT 99639 TO YIELD 738 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA3 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ECHO BAY MINES LTD SIX MILLION COMMON SHARES PRICED AT 13125 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AND FIRST BOSTON CORP MEDIA LOGIC INC 1225000 COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY TUCKER ANTHONY AND PENN MERCHANT GROUP TACO CABANA INC 25 MILLION CLASS A COMMON SHARES PRICED AT 2425 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES INTERMOUNTAIN POWER AGENCY 2315 MILLION 1993 SERIES C POWER SUPPLY REVENUE REFUNDING SECURITIES PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED IN THE ISSUE ARE 1899 MILLION FIXEDRATE BONDS REOFFERED BONDS ARE PRICED TO YIELD FROM 33 IN 1995 TO 551 IN 2014 THERE ARE ALSO 208 MILLION PERIODIC AUCTION RESET SECURITIES AND 208 MILLION INVERSE FLOATING RATE SECURITIES THOSE DERIVATIVES AREN'T FORMALLY REOFFERED TO INVESTORS THE ENTIRE ISSUE IS EXPECTED TO BE RATED DOUBLEA BY BOTH MOODY'S AND S&P NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP 640 MILLION SERIES 1993C REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 44 IN 1999 TO 58 FOR THE ZEROCOUPON BONDS DUE IN 2013 AND 2014 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE SINGLEA FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEAPLUS RATING NIAGARA FALLS BRIDGE COMMISSION 1026 MILLION 1993B TOLL BRIDGE SYSTEM REVENUE BONDS PRICED BY SMITH BARNEY HARRIS UPHAM & CO YIELDS RANGE FROM 265 IN 1994 TO 545 IN 2021 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P PROVINCE OF SASKATCHEWAN 500 MILLION TWOPART ISSUE OF BONDS PRICED THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE SIZE OF THE ISSUE WAS INCREASED FROM AN ORIGINALLY PLANNED 400 MILLION THE FIRST PART CONSISTING OF 200 MILLION OF NOTES DUE JULY 15 2003 WAS PRICED AS 6625S AT 99833 TO YIELD 6648 IT WAS PRICED AT A SPREAD OF 087 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 300 MILLION OF DEBENTURES DUE JULY 15 2013 WAS PRICED AS 7375S AT 99102 TO YIELD 7462 IT WAS PRICED AT A SPREAD OF 079 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND BOTH PARTS ARE NONCALLABLE THE ISSUES ARE RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORP 175 MILLION STUDENT LOAN REVENUE BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP INCLUDED IN THE OFFERING ARE 136 MILLION SENIOR SERIES 1993A BONDS THEY ARE 48S PRICED AT PAR AND ARE TO YIELD 48 IN 1999 THE 1404 MILLION SENIOR SERIES 1993B BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX ARE PRICED TO YIELD FROM 38 IN 1995 TO 585 IN 2007 THE 21 MILLION SUBORDINATE SERIES 1993C BONDS ARE 61S PRICED AT PAR AND ARE TO YIELD 61 IN 2007 THEY ARE ALSO SUBJECT TO THE ALTERNATIVE MINIMUM TAX THE SERIES A AND SERIES B BONDS HAVE BEEN RATED TRIPLEA BY MOODY'S AND THE SERIES C BONDS HAVE BEEN RATED SINGLEA ABB INTERNATIONAL FINANCE NV SWISS PARENT 250 BILLION ITALIAN LIRE OF 10 EUROBONDS DUE AUG 6 2003 AT ISSUE PRICE 10125 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO BONDS YIELD 1012 ANNUAL AFTER DEDUCTING FULL FEES OF TWO POINTS KEEPWELL AGREEMENT WITH ASEA BROWN BOVERI LTD ALOKA CO JAPAN 60 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 1375 NOTES DUE SEPT 30 1997 AT PAR VIA NIKKO BANK SWITZERLAND LTD EACH 50000FRANC NOTE IS CONVERTIBLE INTO COMPANY SHARES FROM AUG 12 1993 TO SEPT 16 1997 AT 25 PREMIUM OVER CLOSING SHARE PRICE JULY 12 WHEN TERMS ARE FIXED FEES 1625 POINTS BENETTON INTERNATIONAL NV ITALIAN PARENT 200 BILLION ITALIAN LIRE OF EUROBONDS WITH SPONSORED KNOCKOUT EQUITY WARRANTS ATTACHED DUE JULY 29 1998 VIA SWISS BANK CORP TERMS FIXED ON OR BEFORE JULY 14 INDICATED COUPON 45 TO 5 INDICATED PREMIUM 95 TO 97 OF SPOT SHARE PRICE TO GIVE DISCOUNT OF 3 TO 5 EACH WARRANT CONVERTIBLE INTO ONE ORDINARY SHARE OF COMPANY ON JULY 29 1996 CONDITIONAL PUT STRIKE OF 15 OVER CLOSING SHARE PRICE AT TIME OF FIXING KNOCKOUT PRICE OF 30 OVER CLOSING SHARE PRICE AND CALL STRIKE OF 60 OVER IF SHARES TRADE BELOW KNOCKOUT PRICE WARRANTHOLDER IS GUARANTEED CONDITIONAL PUT STRIKE IF SHARES TRADE ABOVE KNOCKOUT PRICE THEN PUT STRIKE CANCELED AND CONVERSION PRICE CAPPED AT CALL STRIKE GUARANTOR BENETTON GROUP SPA FEES 225 POINTS LESS SPECIAL FEE OF 015 POINT DEDUCTED FOR LEAD MANAGERS CREDIT LYONNAIS FRANCE 1 BILLION OF FLOATINGRATE EURONOTES DUE JULY 28 1998 AT ISSUE AND REOFFER PRICE 9965 VIA CREDIT LYONNAIS GOLDMAN SACHS INTERNATIONAL LTD AND LEHMAN BROTHERS INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 30 BASIS POINTS BONDS CALLABLE AFTER THREE YEARS AT PAR AND ON EACH QUARTERLY PAYMENT DATE THEREAFTER FEES 0225 POINT FOKKER NV NETHERLANDS 334 MILLION DUTCH GUILDERS OF 4 CONVERTIBLE SUBORDINATED BONDS DUE JULY 29 999 PRICED AT PAR VIA MEESPIERSON NV AND UBS LTD BONDS CONVERTIBLE FROM OCT 29 1993 TO JULY 15 1999 INTO COMMON SHARES AT 17 GUILDERS A SHARE FEES THREE POINTS INTEREST PAYABLE SEMIANNUALLY HANKYU DEPARTMENT STORES INC JAPAN 15 BILLION YEN OF CONVERTIBLE EUROBONDS DUE SEPT 30 2000 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD INDICATED COUPON OF 2 TO 225 AT TERMS TO BE FIXED AROUND JULY 13 BONDS CONVERTIBLE FROM AUG 12 1993 TO SEPT 22 2000 INTO ORDINARY SHARES OF COMPANY AT INDICATED PREMIUM FROM 4 TO 6 FEES 25 POINTS INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION SWISS FRANCS OF 475 PUBLIC BONDS DUE AUG 20 2003 PRICED AT 10175 VIA CREDIT SUISSE FEES TWO POINTS INTERNATIONALE NEDERLANDEN VERZEKERINGEN NV DUTCH PARENT 200 MILLION DUTCH GUILDERS OF 625 EUROBONDS DUE AUG 10 1998 AT ISSUE PRICE 10065 VIA ING BANK NV REOFFERED AT 999 TO YIELD 6274 ANNUAL A SPREAD OF 226 BASIS POINTS ABOVE 625 DUTCH STATE LOAN DUE JULY 1998 FEES ONE POINT JAPAN AIR LINES CO JAPAN 250 MILLION OF 6625 EUROBONDS DUE JULY 22 2003 AT ISSUE PRICE 100865 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 99315 TO YIELD 672 A MARGIN OF 83 BASIS POINTS OVER 625 US TREASURY NOTE DUE FEBRUARY 2003 FEES TWO POINTS MITSUBISHI OIL CO JAPAN 30 BILLION YEN OF 2 SEMIANNUAL EUROBONDS DUE SEPT 29 2000 AT PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD BONDS CONVERTIBLE FROM AUG 10 1993 TO SEPT 21 2000 INTO ORDINARY SHARES OF COMPANY AT INDICATED PREMIUM OF 25 TERMS FIXED JULY 14 BONDS CALLABLE FROM OCT 1 1994 AT 103 DECLINING BY 05 POINT ANNUALLY TO 1005 IN 1999 SUBJECT TO SHARE PRICE BEING AT LEAST 130 OF CONVERSION PRICE FEES 25 POINTS LESS SPECIAL FEE OF 035 POINT DEDUCTED FOR LEAD MANAGERS MITSUBISHI OIL CO JAPAN 200 MILLION OF 1375 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE JULY 23 1997 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC EACH 10000 BOND PLUS TWO WARRANTS TO PURCHASE SHARES IN COMPANY AT TERMS TO BE FIXED JULY 14 INDICATED PREMIUM 25 WARRANTS EXERCISABLE FROM AUG 10 1993 TO JULY 16 1997 FEES 225 POINTS LESS SPECIAL FEE DEDUCTED FOR LEAD MANAGERS OF 02 POINT RENAULT FRANCE 15 BILLION FRENCH FRANCS OF 725 EUROBONDS DUE AUG 9 2002 AT ISSUE PRICE 10092 VIA SOCIETE GENERALE REOFFERED AT 99295 TO YIELD 736 ANNUAL A SPREAD OF 65 BASIS POINTS ABOVE 85 FRENCH TREASURY NOTE DUE 2002 FEES TWO POINTS STATE BANK OF NEW SOUTH WALES AUSTRALIA 1531 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 2003 AT ISSUE AND REOFFER PRICE 991 VIA MORGAN STANLEY INTERNATIONAL BONDS WILL TRADE INTERCHANGEABLY WITH 969 MILLION OF OUTSTANDING IDENTICAL BONDS TOTAL SIZE OF ISSUE NOW 250 MILLION ALL OTHER TERMS UNCHANGED INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR FOR DOLLARS PLUS 01875 POINT GUARANTOR GOVERNMENT OF NEW SOUTH WALES FEES 0625 POINT TAKARA STANDARD CO JAPAN 10 BILLION YEN OF 1625 CONVERTIBLE EUROBONDS DUE MARCH 31 1998 AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC BONDS CONVERTIBLE FROM AUG 6 1993 TO MARCH 24 1998 INTO ORDINARY SHARES OF COMPANY AT TERMS TO BE FIXED JULY 13 INDICATED PREMIUM 25 CALLABLE ON OR AFTER APRIL 1 1994 AT 102 DECREASING BY 05 ANNUALLY TO 1005 ON APRIL 1 1997 SUBJECT TO SHARE PRICE BEING 130 OF CONVERSION PRICE FEES 25 POINTS LESS SPECIAL FEE OF 035 POINT DEDUCTED FOR LEAD MANAGERS 9307080084 930708 SOUTHWEST AIR TRAFFIC RISES 26 DALLAS SOUTHWEST AIRLINES CO CONTINUING TO OUTPACE THE INDUSTRY REPORTED JUNE TRAFFIC INCREASED 26 THE AIRLINE FLEW 15 BILLION REVENUE PASSENGER MILES COMPARED WITH LAST YEAR'S 12 BILLION MILES A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OR AVAILABLE SEATS FILLED INCREASED TO 712 FROM 649 FOR THE FIRST SIX MONTHS OF THE YEAR SOUTHWEST'S TRAFFIC INCREASED 208 TO 79 BILLION REVENUE PASSENGER MILES LOAD FACTOR ALSO INCREASED TO 671 FROM 647 9307080082 930708 CORRECTIONS & AMPLIFICATIONS GALAXY FUND MUTUAL FUND PORTFOLIOS CAN BE REACHED BY CALLING THE TOLLFREE TELEPHONE NUMBER 800 6280414 ALSO OVERLAND EXPRESS FUNDS' TOLLFREE NUMBER IS 800 5529612 THE PHONE NUMBERS WERE MISSTATED IN TUESDAY'S MUTUAL FUND SECTION TRIALS HAVE BEEN CONCLUDED IN THREE LAWSUITS AGAINST FORD MOTOR CO OVER ALLEGED SAFETY DEFECTS OF THE BRONCO II SPORT UTILITY VEHICLE FORD HAS WON TWO OF THE CASES AND LOST ONE A LEGAL BEAT COLUMN JUNE 21 INCORRECTLY REPORTED THAT THERE HAD BEEN ONLY TWO TRIALS 9307080081 930708 LEISURE & ARTS RUSSIAN TEAM SHOWS OFF VIRTUES OF DUO PIANO BY BARRYMORE LAURENCE SCHERER NEW YORK HOW WELL I REMEMBER THE SCENE IT WAS AN OLD MARIO LANZA FILM JOSE ITURBI PLAYING A PERTURBED OPERA CONDUCTOR FACED WITH A PETULANT DIVA SORTS OUT HIS PROBLEMS WHILE PLAYING A PIANO DUO WITH HIS REALLIFE SISTER AMPARO THIS WAS NO MERE FOURHAND DUET ON ONE KEYBOARD EACH PLAYED A SHINY GRAND PIANO THE INSTRUMENTS FACING BELLY TO BELLY 176 KEYS IN ALL THE CAMERA CUT BACK AND FORTH BETWEEN THE ITURBIS AS THE MUSIC PROBABLY THEIR WARHORSE INFANTE'S DANSES ANDALOUSES CAST ITS HOLLYWOOD SPELL TO A 10YEAROLD GLUED TO A TV THIS WAS CLASS THE 1940S THROUGH THE MID'60S WERE SOMETHING OF A HEYDAY FOR DUOPIANO TEAMS AND IN ADDITION TO THE ITURBIS THE CONCERT CIRCUIT BOASTED SUCH PROMINENT DUOS AS VITYA VRONSKY AND VICTOR BABIN ARTHUR GOLD AND ROBERT FIZDALE AND OF COURSE ROSINA AND JOSEF LHEVINNE ALTHOUGH THERE ARE A NUMBER OF DUOPIANO TEAMS PERFORMING TODAY AMONG THEM ANTHONY AND JOSEPH PARATORE RICHARD AND JOHN CONTIGULIA AND THE UBIQUITOUS LEBECQUE SISTERS THE GENRE HAS SUFFERED FROM A SLIGHTLY RAFFISH SHOWBIZ IMAGE FOR SOME TIME AND THUS HAS OFTEN BEEN REGARDED AS A NOVELTY RATHER THAN A SERIOUS ART FORM FRANKLY THAT KIND OF THINKING HAS BEEN COMPLETELY UNJUST DECLARES LORETTA DRANOFF WHO SPEAKS FROM FIRSTHAND KNOWLEDGE DURING THE '50S AND '60S SHE AND HE LATE HUSBAND MURRAY WERE A CELEBRATED DUOPIANO TEAM NOT ONLY DOES THE TWOPIANO REPERTOIRE CONTAIN SOME OF THE GREATEST OF ALL CHAMBER MUSIC SHE SAYS FROM THE STANDPOINT OF SHEER VIRTUOSITY THE MUSIC IS OFTEN AS CHALLENGING AS ANYTHING IN THE SOLO LITERATURE IN FACT THE TWOPIANO REPERTOIRE IS BOTH EXTENSIVE AND VENERABLE STARTING WITH FOR TWO VIRGINALS BY THE 16THCENTURY ENGLISH COMPOSER GILES FARNABY THE EARLIEST MATERIAL WRITTEN IN AN AGE OF PORTABLE KEYBOARD INSTRUMENTS INCLUDES ELABORATE BAROQUE PIECES BY FRANOIS COUPERIN JS BACH'S CONCERTOS FOR TWO THREE AND FOUR KEYBOARD INSTRUMENTS WORKS BY WILHELM FRIEDEMANN BACH AND MOZART ONCE THE INSTRUMENTS GOT HEAVIER AND LESS CONVENIENT TO LUG AROUND COMPOSERS SEEM TO HAVE LIMITED THEIR OUTPUT OF PIECES FOR MULTIPLE PIANOS FOCUSING GREATER ATTENTION ON FOURHAND DUET MUSIC WHICH WAS MORE CONVENIENT FOR MIDDLECLASS HOUSEHOLDS NEVERTHELESS WE HAVE CHOPIN'S RONDO IN C 1828 SCHUMANN'S ANDANTE AND VARIATIONS AND BRAHMS'S ST ANTHONY VARIATIONS OP 56B EACH TWOPIANO PIECES WHILE LISZT THAT SUPREME EXPLORER OF KEYBOARD SONORITY WROTE MORE THAN 25 TWOPIANO WORKS MOSTLY ARRANGEMENTS OF HIS OWN ORCHESTRAL SCORES IN MORE RECENT TIMES RAVEL BUSONI STRAVINSKY BARTOK AND RACHMANINOFF MADE NOTABLE CONTRIBUTIONS NOT TO MENTION POULENC MILHAUD MARTINU VAUGHAN WILLIAMS AND BRITTEN MS DRANOFF WAS DETERMINED TO FOSTER A SERIOUS REASSESSMENT OF THIS GENRE SO SHE ESTABLISHED THE BIENNIAL MURRAY DRANOFF TWOPIANO COMPETITION IN MIAMI HER HOME NOT ONLY HAS THE COMPETITION PROSPERED THE NEXT ONE WILL BE HELD DEC 1722 IT HAS ALSO GIVEN THE GENRE A SHOT IN THE ARM THE 1987 FIRSTPRIZE WINNERS DOMINIQUE MOREL AND DOUGLAS NEMISH ARE PERFORMING AND RECORDING IN CANADA THE 1989 FIRSTPRIZE WINNERS ARIANNA GOLDINA AND REMY LOUMBROZA ARE TOURING FRANCE THIS YEAR THE 1989 SECONDPRIZE WINNERS BROTHERS VOLKER AND HANS PETER STENZL ARE PERFORMING AND TEACHING DUO PIANO AT LONDON'S ROYAL ACADEMY OF MUSIC AND THE GUILDHALL SCHOOL AS WELL AS IN STUTTGART ONE OF MS DRANOFF'S GOALS IS TO ENCOURAGE THE ESTABLISHMENT OF MAJOR DEGREE AND DIPLOMA PROGRAMS IN DUO PIANO IN CONSERVATORIES WORLDWIDE DUO PIANISM MUST NO LONGER BE REGARDED IN THE ACADEMIC WORLD AS A BYPRODUCT OF SOLO WORK BUT AS A DISCIPLINE ON ITS OWN SHE SAYS AND IT'S HAPPENING NEW YORK'S MANHATTAN SCHOOL OF MUSIC NOW HAS SUCH A PROGRAM ON THE GRADUATE LEVEL AT THE 1991 COMPETITION THE JUDGES DECLARED TWO FIRSTPRIZE WINNERS BOTH RUSSIAN HUSBANDANDWIFE TEAMS THE TEAM OF VALENTINA LISITSA 23 YEARS OLD AND ALEXEI KUZNETSOV 26 HAS SINCE MOVED TO THE US I FIRST HEARD MS LISITSA AND MR KUZNETSOV ON A TAPE OF THEIR WINNING PERFORMANCE AT THE COMPETITION AND DESPITE MY INITIAL SKEPTICISM BY THE THIRD SUPERBLY ROUNDED CHORD OF THE OPENING WORK RACHMANINOFF'S FIRST SUITE OP 5 I KNEW THIS WAS SERIOUS BUSINESS NO WONDER THE PIANIST ALEXANDER TORADZE HELPED GET THEM A SMALL SCHOLARSHIP AT INDIANA UNIVERSITY AT SOUTH BEND THEIR PRESENT HOME BASE THE TAPE ENDED WITH A PERFORMANCE OF LISZT'S REMINISCENCES OF MOZART'S DON GIOVANNI THAT REGARDLESS OF A FEW STRAY NOTES DURING THE FINALE NEARLY SET MY SPEAKERS ON FIRE IN A RECENT RECITAL AT STEINWAY HALL HERE THE DUO OPENED WITH WILLIAM BOLCOM'S RECUERDOS AN ENGAGING PIECE OF LATINFLAVORED MELODIOUSNESS COMPOSED FOR THE 1991 COMPETITION AN ANCILLARY PURPOSE OF THE DRANOFF FOUNDATION IS TO ADD TO THE REPERTOIRE BY COMMISSIONING A NEW WORK FOR EACH COMPETITION THEN CAME CHOPIN'S RONDO FOR TWO PIANOS THE RACHMANINOFF AND FINALLY THE LISZTNOTE PERFECT THIS TIME THROUGHOUT THE PROGRAM THE COUPLE CONSISTENTLY DISPLAYED THE KIND OF MUSICIANSHIP VIRTUOSITY AND CHARM THAT SUGGEST A BRIGHT FUTURE MOREOVER FOR A CONCERT WORLD THAT TRADITIONALLY DOTES ON SEX APPEAL THIS PAIR IS TAILORMADE MR KUZNETSOV'S DARK TATAR LOOKS COMPLEMENT HIS WIFE'S WILLOWY BLOND ELEGANCE MARRIED TWO YEARS MS LISITSA AND MR KUZNETSOV FORMED THEIR DUO IN 1990 DURING THEIR STUDENT DAYS AT THE KIEV CONSERVATORY IN FACT MOST DUO TEAMS ARE EITHER SIBLINGS MARRIED COUPLES OR LOVERS LINKED IN SOME WAY BY AN INTIMATE RELATIONSHIP BEYOND MUSIC AT THE START IT TOOK THE PAIR TWO MONTHS BEFORE THEY COULD PLAY IN TIME WITH EACH OTHER EVEN AT A VERY SLOW TEMPO BUT SAYS MS LISITSA ONE DAY WHILE PLAYING IN UNISON I REALIZED I COULDN'T HEAR ALEXEI I ASKED HIM WHY HE WASN'T PLAYING BUT HE SAID THAT HE WAS WE HAD FINALLY MATCHED OUR RHYTHM SO FINELY THAT IT WAS IMPOSSIBLE TO HEAR WHICH INSTRUMENT WAS WHICH MS LISITSA AND MR KUZNETSOV NEVER PRACTICE SEPARATELY WHICH IS RARE EVEN AMONG DUO PIANISTS AND PROBABLY ACCOUNTS FOR THE EXCEPTIONAL UNITY OF THEIR PERFORMANCE THEY LITERALLY SOUND LIKE ONE PERSON MOREOVER LIKE MOST DUO TEAMS THEY NO LONGER PRACTICE SOLO LITERATURE THERE ARE SO MANY WONDERFUL PIANISTS ALREADY DOING BEETHOVEN SONATAS AND THE TCHAIKOVSKY CONCERTO SAYS MR KUZNETSOV WE REALLY COULDN'T OFFER ANYTHING NEW THAT WAY BUT WE CAN OFFER SOMETHING DIFFERENT IN THE DUO REPERTOIRE THOUGH AT THIS WRITING MS LISITSA AND MR KUZNETSOV ARE STILL EXPLORING THEIR RECORDING OPTIONS THEIR COMING ENGAGEMENTS INCLUDE CONCERTS AT THE DOROTHY TAUBMAN INSTITUTE AMHERST MASS JULY 21 TO BE TAPED BY NATIONAL PUBLIC RADIO FOR NATIONWIDE BROADCAST ON PERFORMANCE TODAY THE RAVINIA FESTIVAL RISING YOUNG STARS SERIES CHICAGO OCT 22 THE WYNMOOR SERIES COCONUT CREEK FLA NOV 18 AND THE BRIDGEPORT CONCERT SERIES BRIDGEPORT CONN DEC 6 MR SCHERER WRITES THE LETTER FROM NEW YORK FOR GRAMOPHONE MAGAZINE 9307080080 930708 ECONOMY PPG WILL CLOSE A SECOND PLANT IDLED BY STRIKE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH PPG INDUSTRIES INC RIDDLED WITH LABOR DISPUTES SAID IT WILL EXIT THE COMMERCIAL GLASS PRODUCTS BUSINESS AND CLOSE A PLANT IN FORD CITY PA THE MOVE MARKS THE SECOND TIME IN LESS THAN TWO WEEKS THAT PPG HAS SAID IT WILL CLOSE A STRIKEIDLED PLANT IN LATE JUNE THE COMPANY SAID IT WILL CLOSE BY YEAR END ITS GREENSBURG PA AUTO REPLACEMENT WINDSHIELD PLANT AND LAY OFF 320 WORKERS WHO HAVE BEEN ON STRIKE SINCE MAY 8 A THIRD PPG PLANT IN CREIGHTON PA REMAINS ON STRIKE THAT PLANT MAKES AUTOMOTIVE WINDSHIELDS FOR NEW VEHICLES THE STRIKING WORKERS ARE REPRESENTED BY THE ALUMINUM BRICK AND GLASS WORKERS INTERNATIONAL UNION WHICH HAS RESISTED PPG'S DEMANDS FOR A COSTSHARING HEALTHCARE COVERAGE PLAN PPG SAYS ITS HEALTHCARE COSTS HAVE INCREASED TO 4000 AN EMPLOYEE FROM 1800 A WORKER A DECADE AGO STRIKES AT FRESNO CALIF AND MOUNT ZION ILL PLANTS WERE SETTLED AT THE PEAK OF THE STRIKES WHICH BEGAN IN MAY SOME 1300 WORKERS WERE STRIKING FIVE PPG PLANTS THE COMPANY SAID THE FORD CITY PLANT WHICH EMPLOYS 360 WORKERS HAD NOT OPERATED SINCE A STRIKE BEGAN MAY 14 PPG WOULD NOT SAY HOW MANY OF THE 300 HOURLY WORKERS MIGHT LOSE THEIR JOBS THE COMPANY SAID IT WILL NEGOTIATE WITH THE UNION ON SEVERANCE PACKAGES AS FOR 60 SALARIED EMPLOYEES THEIR SITUATIONS WILL BE REVIEWED INDIVIDUALLY WITH RESPECT FOR POSSIBLE PLACEMENT IN OTHER PPG FACILITIES A SPOKESMAN SAID THE FORD CITY FACILITY LOCATED NORTH OF PITTSBURGH WAS PPG'S SOLE PLANT IN THE COMMERCIAL GLASS PRODUCTS BUSINESS IN BOTH THE GREENSBURG AND FORD CITY CLOSINGS PPG SAID THE MOVES WERE NOT RELATED TO THE STRIKES WHEN IT ANNOUNCED THE CLOSING OF THE GREENSBURG PLANT WHICH MAKES REPLACEMENT AUTOMOTIVE WINDSHIELDS PPG CITED WEAK MARKET CONDITIONS AND HIGH PRODUCTION COSTS PPG SAID ITS COMMERCIAL GLASS PRODUCTS BUSINESS WHICH MAKES COATED INSULATING WINDOW UNITS FOR OFFICE BUILDINGS AMONG OTHER PRODUCTS HAS BEEN AT A COMPETITIVE DISADVANTAGE ESPECIALLY FROM LOWCOST PRODUCERS AND HAS NOT BEEN PROFITABLE FOR MANY YEARS THE PPG SPOKESMAN SAID THE COMPANY WILL CONTINUE TO MAKE OTHER GLASS PRODUCTS SUCH AS RESIDENTIAL WINDOWS WINDSHIELDS FOR CARS AND PLANES MIRRORS AND TABLE TOPS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PPG SHARES CLOSED AT 66 DOWN 375 CENTS PPG A MAKER OF GLASS CHEMICALS AND COATINGS WHICH EMPLOYS 20000 IN THE US AND ABOUT 32300 WORLDWIDE WOULDN'T DISCLOSE THE COMMERCIAL GLASS PRODUCTS UNIT'S ANNUAL SALES BUT SAID IT WAS A SMALL BUSINESS 9307080079 930708 MONEY MANAGERS BEAT FLAT STOCK MARKET BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL IT WAS A RARE QUARTER IN THE STOCK MARKET FOR MONEY MANAGERS RARE BECAUSE THE MARKET ENDED UP REMARKABLY FLAT YET DURING THE PERIOD IT WAS QUITE CHOPPY WITH INVESTORS RUNNING FOR COVER AT THE FIRST HINT OF BAD NEWS RARER STILL BECAUSE IN THESE TREACHEROUS WATERS MONEY MANAGERS ACTUALLY BEAT THE MARKET BY MORE THAN A FULL PERCENTAGE POINT FOR THE SECOND QUARTER MONEY MANAGERS TURNED IN AVERAGE RETURNS OF 15 COMPARED WITH A RETURN FOR THE STANDARD & POOR'S 500STOCK INDEX OF 04 ACCORDING TO CDA/CADENCE WHICH TRACKS QUARTERLY FILINGS BY MONEY MANAGERS WITH THE SECURITIES AND EXCHANGE COMMISSION MONEY MANAGERS HAVE A TOUGH ENOUGH TIME BEATING THE MARKET UNDER ANY CIRCUMSTANCES EXCEPT A RUNAWAY RALLY BUT SINCE 1985 ONLY ONCE DID MONEY MANAGERS BEAT A FLATTODOWN MARKET BY SUCH A WIDE MARGIN IN THE SECOND QUARTER OF 1992 THE S&P 500 WAS DOWN 25 FOR THE QUARTER WHILE MONEY MANAGERS WERE OFF ONLY 05 INDEED MONEY MANAGERS' PERFORMANCE IS HOLDING UP WELL RELATIVE TO THE OVERALL MARKET FOR BOTH THE PAST SIX MONTHS AND THE PAST 12 MONTHS DURING THE PAST SIX MONTHS MONEY MANGERS PRODUCED RETURNS OF 51 COMPARED WITH 48 FOR THE S&P INDEX FOR THE PAST 12 MONTHS THEY DID EVEN BETTER WITH RETURNS OF 178 COMPARED WITH 136 FOR THE S&P THE KEY DURING THE SECOND QUARTER MONEY MANAGERS SAID WAS TO BE INVESTED IN TECHNOLOGY GOLD OR SMALL CAP STOCKS FOR THE QUARTER MUTUAL FUNDS INVESTED IN METALS INCLUDING GOLD WERE UP 326 FOR THE QUARTER THE NASDAQ COMPOSITE INDEX ROSE 23 FOR THE QUARTER MANAGERS PERFORMED ESPECIALLY WELL IF THEY WERE SMART OR LUCKY ENOUGH TO PICK THE RIGHT STOCKS AND THEN SOCK THE REST AWAY IN CASH THAT HELPED THEIR RETURNS IN THE CDA SURVEY BECAUSE IT DOESN'T INCLUDE CASH HOLDINGS IF IT DID CASH WOULD LOWER OVERALL RETURNS THE CDA FINDINGS ALSO DON'T INCLUDE PERFORMANCE FROM TRADING DURING THE QUARTER OR ANY INVESTMENT STRATEGY THAT ISN'T SIMPLY STRAIGHT STOCK PURCHASES SUCH AS SELLING SHORT FOR ONE ROBERT HAAVE A NEW YORK MONEY MANAGER WAS IN CASH AND THREE GOLD STOCKS DURING THE QUARTER HE SAYS HE TURNED A PROFIT OF 6 MILLION THE PROCEEDS FROM SELLING TWO OF THE GOLD STOCKS ECHO BAY MINES LTD AND PLACER DOME INC WERE INVESTED IN CASH INSTRUMENTS WHICH NOW TOTAL 40 OF HIS PORTFOLIO HE SAYS THIS STRATEGY EARNED MR HAAVE'S FIRM A THIRDPLACE RANKING IN THE SECOND QUARTER FOLLOWING A NO 3 PERFORMANCE IN THE FIRST QUARTER AS WELL I THINK THE US MARKET IS GOING DOWN BIG TIME MR HAAVE SAYS ABOUT 15 OF HIS PORTFOLIO IS INVESTED IN FOREIGN STOCKS INCLUDING RECENT PURCHASES OF FIAT SPA AND MONTEDISON SPA AN ITALIAN CHEMICAL COMPANY TECHNOLOGY STOCK PICKERS PARTICULARLY AMONG THE SMALLER ISSUES WERE ALSO BIG WINNERS DURING THE QUARTER AMONG THEM KOPP INVESTMENT ADVISORS PEQUOT GENERAL PARTNERS WHICH RANKED EIGHTH FOR THE QUARTER TARGET INVESTORS WHICH RANKED 10TH AND DRIEHAUS CAPITAL MANAGEMENT WHICH RANKED 12TH FOR THE QUARTER ROBERT ZUCCARO CHIEF INVESTMENT OFFICER OF TARGET SAYS HE HIT A HOME RUN DURING THE SECOND QUARTER WITH NEWBRIDGE NETWORKS ONE OF THE QUARTER'S BIGGEST GAINERS AND HIS LARGEST HOLDING THE STOCK WHICH HE BOUGHT AT 9 ROSE TO 48 FROM 30 DURING THE QUARTER RECENTLY HE SAYS HE HAS BEEN BUYING SCIMED LIFE SYSTEMS INC WHICH HE EXPECTS TO EARN 450 A SHARE THIS YEAR AND 330 NEXT YEAR SCIMED STOCK HAS BEEN CLIMBING AND NOW TRADES AROUND 60 A SHARE KOPP INVESTMENT ADVISORS THE SECOND QUARTER'S TOPRANKING MANAGER MADE STOCK PICKING LOOK EASY BY BUYING DSC COMMUNICATIONS A TELECOMMUNICATIONS EQUIPMENT COMPANY IN DALLAS ITS SHARES ROSE DURING THE QUARTER TO 5075 FROM 2725 THAT WAS HIS LARGEST POSITION AND IT ALONE PRODUCED A 23 MILLION PROFIT FOR THE QUARTER HE SAYS MEANWHILE FIRST WILSHIRE SECURITIES PROFITED WITH ITS MICRO CAP STOCK STRATEGY SAYS BRUCE STALLER PRESIDENT ITS PICKS OF STOCKS WHOSE MARKET CAPITALIZATIONS TOTAL LESS THAN 100 MILLION INCLUDED WESTERN BEEF INC A NEW YORK GROCERY CHAIN WHICH CLIMBED TO 950 AT THE END OF THE SECOND QUARTER FROM 6 AT THE END OF THE FIRST QUARTER HERE ARE THE TOP PERFORMING MONEY MANAGERS ACCORDING TO CDA/CADENCE FOR THE PAST THREE YEARS AND FIVE YEARS ENDED JUNE 30 ROBERT ZUCCARO A NEW YORK MONEY MANAGER EXPECTS SCIMED LIFE SYSTEMS INC TO EARN 450 A SHARE FOR THE FISCAL YEAR ENDING IN FEBRUARY UP FROM 337 A SHARE LAST YEAR AN ARTICLE YESTERDAY INCORRECTLY SAID MR ZUCCARO EXPECTED THE COMPANY TO EARN 330 A SHARE FOR FISCAL 1995 9307080077 930708 AMERICA WEST EXTENDS DISCOUNTS ON CERTAIN FARES PHOENIX AMERICA WEST AIRLINES EXTENDED ITS DISCOUNTS OF AS MUCH AS 30 ON CERTAIN LEISURE FARES DURING OFFPEAK HOURS BUT THE NEW DISCOUNTS ARE NOT AS STEEP AS THE PREVIOUS ONES OTHER MAJOR CARRIERS INCLUDING UAL CORP'S UNITED AIRLINES DELTA AIR LINES AND AMR CORP'S AMERICAN AIRLINES MATCHED THE OFFER IN COMPETING MARKETS AMERICA WEST'S SALE WHICH BEGAN IN NOVEMBER HAS REPEATEDLY BEEN EXTENDED THE MOST RECENT EXPIRATION DATE WAS TUESDAY UNDER THE LATEST EXTENSION TICKETS MUST BE PURCHASED BY JULY 28 AND TRAVEL MUST BE COMPLETED PRIOR TO OCT 1 SEVERAL RESTRICTIONS APPLY INCLUDING A 14DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY WHILE AMERICA WEST HAS EXTENDED ITS SALE IT HAS ALSO LOWERED THE SAVINGS ON SOME ROUTES FOR EXAMPLE THE PREVIOUS ROUNDTRIP DISCOUNT FARE BETWEEN LAS VEGAS AND MILWAUKEE WAS 338 A 28 SAVINGS FROM THE REGULAR FARE THE CURRENT DISCOUNT FARE ON THE SAME ROUTE IS 378 A 20 SAVINGS 9307080076 930708 BUSINESS BRIEF CHART INDUSTRIES INC COMPANY EXPECTS TO REPORT LOWER 2NDQUARTER EARNINGS CHART INDUSTRIES INC SAID IT EXPECTS TO POST SECONDQUARTER EARNINGS BELOW THE 24 CENTS A SHARE EARNED A YEAR EARLIER CHART SAID IT PREVIOUSLY TOLD ANALYSTS THAT EARNINGS WOULD RISE CHART HAD NET INCOME OF 22 MILLION ON SALES OF 261 MILLION IN THE 1992 QUARTER THE CLEVELANDBASED MAKER OF PROCESS EQUIPMENT FOR LOWTEMPERATURE APPLICATIONS ADDED THAT EARNINGS DECLINES IN THE FIRST AND SECOND QUARTERS MEAN IT IS UNLIKELY THAT 1993 RESULTS WILL REACH THE 73 CENTS A SHARE EARNED IN 1992 SALES IN 1992 WERE 1048 MILLION WITH NET INCOME OF 68 MILLION CHART SAID IT HAS BEEN HURT BY DECREASING ORDERS AND THE SUSPENSION OF ITS WORK ON THE SUPERCONDUCTING SUPER COLLIDER FOR RESEARCH INTO SUBATOMIC PARTICLES BECAUSE OF CONGRESS'S DECISION TO HALT FUNDING FOR THE PROJECT THE COMPANY SAID IT IS RESPONDING TO THE LOWERED EARNINGS EXPECTATIONS WITH LAYOFFS SPENDING DEFERRALS AND OTHER COSTREDUCTION PROGRAMS 9307080075 930708 LEISURE & ARTS BOOKSHELF INTIMATE FRIENDSHIPS BY ROGER KIMBALL IN THIS EXHIBITIONIST AGE THE MEMOIR HAS BECOME A FAVORED LITERARY DEVICE AS GRATIFYING TO THOSE WHO SEEK CELEBRITY BY TELLING ALL AS IT IS TO THOSE WHO CRAVE THE THRILLS OF DISCLOSURE AND VICARIOUS PARTICIPATION THE REAL STRENGTH OF THE GENRE WHICH TURNS ON RECAPTURING THE TEXTURE OF A PARTICULAR TIME AND PLACE BY RECALLING THE PERSONALITIES WHO MADE IT IS OFTEN LOST IN THE COMPETITION TO SHOCK PICASSO AND DORA FARRAR STRAUS GIROUX 340 PAGES 35 JAMES LORD'S BEAUTIFULLY WRITTEN RECOLLECTION OF HIS LIFE IN PARIS IN THE LATE 1940S AND '50S IS A GRATIFYING EXCEPTION INTIMATE WITHOUT BEING VULGAR FRANK WITHOUT BEING TAWDRY IT VIVIDLY DRAMATIZES A GOLDEN MOMENT IN THE LIFE OF ITS AUTHOR AND OUR OWN CULTURAL HISTORY BEST KNOWN FOR HIS MAGISTERIAL BIOGRAPHY OF THE SCULPTOR ALBERTO GIACOMETTI 1985 MR LORD FIRST SET FOOT IN PARIS AS AN INTELLIGENCE OFFICER IN THE US ARMY AT THE END OF 1944 WHEN HE WAS IN HIS EARLY 20S BROUGHT UP IN AN AFFLUENT BUT DECIDEDLY UNLITERARY FAMILY IN ENGLEWOOD NJ WITH SUMMERS APPROPRIATELY IN PARIS MAINE MR LORD FOUND IN POSTWAR BOHEMIAN PARIS THE FULFILLMENT OF EVERY YOUTHFUL AMBITION AND DESIRE HIS CHIEF AMBITION HAD BEEN TO BE A WRITER A NOVELIST AND PART OF THE OFFSTAGE ACTION OF PICASSO AND DORA CONCERNS THE PRODUCTION OF TWO AUTOBIOGRAPHICAL NOVELS THAT HE BLITHELY DISMISSES AS MEDIOCRE HIS REAL GENIUS IT EMERGES IS FOR KNOWING INTERESTING PEOPLE AND ENTERING DECISIVELY INTO THEIR LIVES THOMAS MANN RESPONDING TO THE MANUSCRIPT OF A NOVEL THAT MR LORD HAD SENT HIM SPOKE OF HIS YOUTHFUL CORRESPONDENT'S GIFT FOR ADMIRATION ADMIRATION YES AND TEMERITY ONE THEME OF THIS BOOK IS THE FEARLESSNESS OF YOUTH WHEN HE WAS 22 HE ARRANGED TO MEET PABLO PICASSO BY HAVING AN ACQUAINTANCE SEEK OUT THE GREAT PAINTER ALREADY WORLDFAMOUS AND FAMOUSLY DIFFICULT AND INFORM HIM THAT HE WOULD SOON BE VISITED BY AN AMERICAN SOLDIER MR LORD DULY ARRIVED AT PICASSO'S APARTMENT AND SOUGHT AN AUDIENCE SO MUCH PERHAPS IS STANDARD IMPETUOSITY BUT THE YOUNG JAMES LORD DID NOT WISH MERELY TO MEET PICASSO HE WANTED HIS PORTRAIT DONE BY THE MASTER ACCORDINGLY WHEN HE VISITED PICASSO AGAIN HE CAME BEARING PAPER AND PENCIL AND MADE THE REQUEST WHAT IS EXTRAORDINARY IS THAT PICASSO ACCEDED AND DASHED OFF A PORTRAIT OVER LUNCH EVEN MORE EXTRAORDINARY IS THAT MR LORD WAS DISSATISFIED WITH THE RESULT I SAW IN MY PORTRAIT PRINCIPALLY EVIDENCES OF HASTE AND INDIFFERENCE ITS INADEQUACY NOT MY OWN MORE EXTRAORDINARY STILL IS THAT HE DECIDED TO IMPROVE THE PICTURE BY ADDING A LINE OR TWO TO THE NAPE OF NECK STILL DISSATISFIED HE ASKED PICASSO TO DO ANOTHER PORTRAIT EXPLAINING THAT A MISFORTUNE BEFELL THE FIRST PERHAPS EVEN MR LORD WAS ASTONISHED WHEN PICASSO ACQUIESCED A SECOND TIME PICASSO IS WITHOUT DOUBT THE FORCE THAT ANIMATES THIS BOOK THE SUN AROUND WHICH ALL THE OTHER CHARACTERS REVOLVE FOR A BRIEF TIME MR LORD CONSIDERED THE PAINTER ONE OF HIS BEST FRIENDS IN PARIS BUT IT WAS A FRIENDSHIP THAT ON MR LORD'S SIDE WAS BASED CHIEFLY ON AWE I WOULD LIKE TO CONTRACT GENIUS FROM HIM AS ONE CONTRACTS A DISEASE HE WROTE IN HIS JOURNAL THE IMAGE MAY HAVE BEEN MORE APT THAN MR LORD REALIZED INTIMACY WITH PICASSO TENDED TO BE AN INSALUBRIOUS ENTERPRISE AND IF PICASSO IS THE FORCE OF NATURE ONE MIGHT SAY THE CATASTROPHETHAT SETS THIS MEMOIR IN MOTION THE EMOTIONAL CENTER OF THE BOOK IS IN THE DEEP BUT ILLFATED FRIENDSHIP BETWEEN MR LORD AND THE SECOND PERSON NAMED IN THE TITLE OF HIS MEMOIR DORA MAAR BORN THEODORA MARKOVITCH WAS PICASSO'S MISTRESS FOR A DECADE BEGINNING IN 1936 A PAINTER HERSELF SHE WAS THE INSPIRATION FOR AND SUBJECT OF SCORES OF PICASSO'S PAINTINGS AND DRAWINGS MR LORD MET HER THE FIRST DAY HE ASKED PICASSO TO DO HIS PORTRAIT THE FRIENDSHIP BETWEEN MR LORD AND DORA MAAR DID NOT BLOSSOM UNTIL AFTER PICASSO HAD DISCARDED HER EMOTIONALLY THE BREAK WAS A DISASTER FOR DORA SHE SUFFERED A COMPLETE NERVOUS COLLAPSE AND WAS BRIEFLY INSTITUTIONALIZED HE USED ME SHE SAID UNTIL HE FELT THERE WAS NOTHING LEFT OF ME HITHERTO A FREELIVING BOHEMIAN SHE RETURNED TO HER FATHER'S FAITH AND BECAME A SERIOUS CATHOLIC THE MOST POIGNANT CHAPTERS OF PICASSO AND DORA CHRONICLE THE EVOLUTION OF MR LORD'S RELATIONSHIP WITH THIS REMARKABLE WOMAN WHO WAS 15 YEARS HIS SENIOR IT WAS HE WRITES SOMETHING OTHER THAN A FRIENDSHIP NOT ALTOGETHER A ROMANCE AND YET ROMANTIC FOR SOME MONTHS THEY WOULD SPEAK MOST MORNINGS ON THE TELEPHONE FOR AN HOUR OR MORE THEY SHARED A SUMMER HOUSE BUT NOT A BEDROOM FOR WEEKS ON END MR LORD WRITES OF THE EXHILARATING SENSE OF INTIMACY HE FELT WITH HER THAT HE HAS NEVER SINCE EXPERIENCED WITH ANYONE ELSE ALTHOUGH HOMOSEXUAL HE SERIOUSLY CONSIDERED ASKING HER TO MARRY HIM WHAT I BELIEVED I WANTED WAS TO BE WITH DORA ALWAYS IT WAS PERHAPS INEVITABLE THAT THIS INTENSE FRIENDSHIP WOULD FALTER DORA WITHDREW MORE AND MORE INTO THE PRIVACY OF HER FAITH THE ABIDING SADNESS OF THIS BOOK LIES IN ITS CONFRONTATION WITH A CASE OF BOTCHED OR IMPOSSIBLE INTIMACY MR LORD IS NEVER MAUDLIN BUT THERE IS REAL MELANCHOLY WHEN HE REMARKS NEAR THE END OF HIS BOOK SHE REMAINED MORE PRECIOUS TO ME THAN ANYONE ELSE I KNEW 9307080074 930708 NOTABLE & QUOTABLE WILLIAM COLE A PHD IN MEDIEVAL LITERATURE AND A TEACHING ASSISTANT AT HARVARD AS QUOTED IN AN ARTICLE ON GRADE INFLATION IN THE MAYJUNE ISSUE OF HARVARD MAGAZINE A LOT OF GRADE INFLATION IN THE HUMANITIES IS DUE TO THE FACT THAT MANY COURSES NOW HAVE AN IDEOLOGICAL BASIS WHERE ONCE YOU HAD A COURSE IN SAY NINETEENTHCENTURY FRENCH LITERATURE NOW THE COURSE WILL BE SOMETHING LIKE THE REPRESSION OF WOMEN BY THE DOMINANT DISCOURSE OF NINETEENTHCENTURY FRENCH LITERATURE STUDENTS WHO ENROLL WILL ALL AGREE WITH ITS PREMISE THAT LITERATURE ACTS IN A CERTAIN WAY TO MARGINALIZE WOMEN IT'S CURIOUS THAT THE SAME ACADEMICS WHO MOST VOCIFEROUSLY PROMOTE DIVERSITY WIND UP WITH THE MOST MONOLITHIC CLASSROOMS THE TEACHER IS SURROUNDED NOT BY STUDENTS BUT BY DISCIPLES AND HEY YOU GIVE YOUR DISCIPLES A'S 9307080073 930708 BROOKLYN UNION GAS UNIT BROOKLYN NY GAS ENERGY INC A UNIT OF BROOKLYN UNION GAS CO SAID IT SECURED A 263 MILLION FINANCING AGREEMENT TO BUILD A 100MEGAWATT POWER PLANT AT JOHN F KENNEDY INTERNATIONAL AIRPORT GAS ENERGY SAID THE NATURAL GASFIRED COGENERATION FACILITY WILL BE OWNED OPERATED AND MAINTAINED BY KIAC PARTNERS JOINTLY OWNED BY GAS ENERGY AND COMMUNITY ENERGY ALTERNATIVES INC A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP THE FACILITY WILL PROVIDE ELECTRICITY TO THE AIRPORT WHICH IS OWNED AND OPERATED BY THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY THE PORT AUTHORITY HAS AGREED TO ISSUE 175 MILLION IN TAXEXEMPT SPECIAL PROJECT BONDS TO FINANCE A PORTION OF THE PROJECT 9307080072 930708 OTC FOCUS TECHNOLOGY SHARE SELLOFF DRIVES NASDAQ LOWER BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS WORRIED ABOUT THE PROSPECTS OF POOR EARNINGS REPORTS DUMPED TECHNOLOGY STOCKS IN WHAT HAS BECOME A SUMMER RITUAL IT DOESN'T LOOK LIKE A GOOD QUARTER FOR SOME TECHNOLOGY STOCKS AND BIG MOMENTUM PLAYERS ARE PULLING OUT SAID GREG RILEY A SENIOR OTC TRADER AT FIRST BOSTON CORP RIGHT NOW INVESTORS DON'T WANT TO TOUCH SOME OF THESE STOCKS WITH A 10FOOT POLE THE CARNAGE IN TECHNOLOGY STOCKS DRAGGED DOWN THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX FELL 343 OR 049 TO 69879 WHILE THE DOW JONES INDUSTRIAL AVERAGE CLIMBED A HEALTHY 2574 POINTS TO 347567 OTC DECLINERS OUTNUMBERED ADVANCERS 1447 TO 1260 ON TOTAL VOLUME OF 236 MILLION SHARES UP FROM TUESDAY'S 1994 MILLION A FEW TECH STOCKS ARE BLOWING UP WITH BAD EARNINGS ANNOUNCEMENTS OR PROJECTIONS AND IT SPREADS NERVOUSNESS SAID LARRY BOWMAN HEAD OF FIDELITY'S EMERGING GROWTH FUND IT IS ONLY GOING TO TO GET WORSE FROM HERE MICROSOFT TUMBLED 2 5/8 TO 83 3/8 SEQUENT COMPUTER SYSTEMS PLUNGED 5 TO 11 3/4 APPLE DROPPED 1 1/4 TO 36 1/2 AND ADOBE SYSTEMS FELL 5/8 TO 55 1/8 TRADITIONALLY THE SUMMER QUARTER HASN'T BEEN A GOOD ONE FOR TECHNOLOGY STOCKS WHICH OFTEN HIT BOTTOM DURING THE SUMMER AND DON'T START TO PICK UP AGAIN UNTIL LATE SEPTEMBER THIS YEAR'S RECESSION IN EUROPE WILL ESPECIALLY HURT COMPANIES WITH EXPOSURE IN THAT PART OF THE WORLD MANY OF THESE STOCKS ARE COMING OFF THEIR PEAK TRADING SEASON FROM FEBRUARY TO MAY AND ARE DUE FOR A HEALTHLY CORRECTION TRADERS SAID BUT ANY SIGN OF WEAKNESS IN ONE OR TWO STOCKS CAN SEND THE WHOLE GROUP TUMBLING AT ANY MOMENT PEOPLE ARE SHOOTING OR SELLING FIRST AND ASKING QUESTIONS LATER SAID JEFFREY MALET PRESIDENT OF PACIFIC CENTURY ADVISERS IN SAN DIEGO SUMMER IS ALWAYS A TRICKY TIME FOR TECH STOCKS YOU DON'T KNOW IF THE PROBLEMS ARE SEASONAL OR TERMINAL BUT TRADERS CAUTION THAT BARGAINHUNTING INVESTORS SHOULDN'T RUSH TO BUY THE BATTERED TECH STOCKS THE ONES THAT ARE WORTH BUYING STILL HAVE FURTHER TO DROP AND SOME WILL NEVER RECOVER THEY SAID INVESTORS ARE DUMPING ANY COMPANY THAT HAS WEAKENING FUNDAMENTALS LIKE A SEQUENT APPLE 3COM OR READRITE SAID MR BOWMAN MANY INVESTORS HAVE NO IDEA HOW COMPETITIVE THESE COMPANIES REALLY ARE THERE IS NO SUCH THING AS A CHEAP TECHNOLOGY STOCK THEY JUST KEEP GETTING CHEAPER THE DAY'S MOST ACTIVE STOCK WAS SEQUENT WHICH TOPPLED 30 ON SEVEN MILLION SHARES 12 TIMES ITS NORMAL VOLUME THE COMPANY ANNOUNCED LATE TUESDAY THAT ITS SECONDQUARTER RESULTS FELL BELOW ANALYSTS' EXPECTATIONS THE BEAVERTON ORE COMPUTER MAKER SAID IT EXPECTS ROUGHLY BREAKEVEN EARNINGS ON REVENUE OF ABOUT 80 MILLION ANALYSTS HAD PROJECTED EARNINGS OF 16 CENTS TO 25 CENTS A SHARE ON REVENUE OF 87 MILLION TO 92 MILLION IN THE YEAREARLIER QUARTER SEQUENT EARNED 12 CENTS A SHARE SEQUENT SAID SOME CUSTOMERS MAY HAVE DELAYED PURCHASES IN ANTICIPATION OF A PLANNED NEW LINE BASED ON INTEL CORP'S PENTIUM MICROPROCESSOR MICROSOFT THE DAY'S SECOND MOST ACTIVE STOCK TRADED AS LOW AS 81 1/4 GOLDMAN SACHS & CO ANALYST RICK SHERLUND SHAVED HIS EARNINGS ESTIMATE FOR THE FISCAL YEAR ENDING JUNE 1994 TO A RANGE OF 380 TO 385 A SHARE FROM 390 MR SHERLUND SAID IN A RESEARCH REPORT THAT NEW VERSIONS OF WORD A WORD PROCESSOR AND EXCEL A SPREADSHEET WILL COME OUT TWO TO THREE MONTHS LATER THAN HE ORIGINALLY EXPECTED MR SHERLUND'S ANNOUNCEMENT COMES JUST BEFORE MICROSOFT'S JULY 29 ANNUAL ANALYST MEETING AT THE PAST SEVERAL MEETINGS MICROSOFT OFFICERS HAVE WARNED INVESTORS NOT TO EXPECT THE COMPANY TO MAINTAIN ITS HIGH GROWTH RATE ADOBE'S CONTINUED DECLINE AFTER TUESDAY'S 3 5/8 DROP FOLLOWS SOUNDVIEW FINANCIAL GROUP'S DOWNGRADE OF ITS SHORTTERM INVESTMENT RATING TO SELL FROM HOLD AND THE TRIM OF ITS EARNINGS ESTIMATE FOR FISCAL 1993 ENDING IN NOVEMBER BY SEVEN CENTS A SHARE TO 248 STILL TECH STOCKS HAVE THEIR LONGER TERM ADVOCATES CHARLES CHIP MORRIS HEAD OF T ROWE PRICE'S SCIENCE AND TECHNOLOGY FUND LOOKS FOR TECH STOCKS TO BE THE BEST PERFORMING SECTOR IN THE NEXT TWO OR THREE YEARS I CAN'T GET TOO DEPRESSED ABOUT THE PULL BACK HE SAID IT'S THE SAME SOB STORY EVERY YEAR EVERY SUMMER MICROSOFT MAKES INVESTORS NERVOUS AND WALL STREET BECOMES MORE CAUTIOUS ON THE WHOLE GROUP INDEED ANALYSTS ARE EXPECTING UPBEAT EARNINGS FROM SEVERAL COMPANIES FIDELITY'S MR BOWMAN SAID HE'D STICK WITH INTEL CISCO SYSTEMS AND SYNOPTICS IT'S BEEN AT LEAST A COUPLE MONTHS SINCE WE'VE HAD A PANIC IN THE TECH STOCKS SAID ROGER MCNAMEE OF INTEGRAL CAPITAL PARTNERS IN PALO ALTO CALIF EVERY SUMMER PORTFOLIO MANAGERS WANT TO GO ON VACATION AND GET OUT OF THESE STOCKS WHEN THEY'RE COMING OFF THEIR HIGHS SO THEY DON'T HAVE TO WORRY ABOUT THEM WHEN THEY'RE AT THE BEACH IN OTHER ACTIVITY COPYTELE JUMPED 4 3/4 TO 18 3/8 COPYTELE SAID IT ENTERED INTO AN AGREEMENT WITH SUMITOMO CHEMICAL CO TO CONTINUE JOINT TECHNICAL AND COMMERCIAL DEVELOPMENT EFFORTS FOR POTENTIAL APPLICATIONS FOR COPYTELE'S ELECTROPHORETIC IMAGE DISPLAY OR EPID FLAT PANEL TECHNOLOGY BUT MICHAEL MURPHY EDITOR OF OVERPRICED STOCK SERVICE NEWSLETTER IN HALF MOON BAY CALIF QUESTIONS THE VALUE THE ACCORD WILL HAVE ON COPYTELE'S SALES GROWTH TO JUSTIFY SUCH A STOCK JUMP I HAVE TRIED TO GET A COPY OF THE CONTRACT BUT THE COMPANY HASN'T SENT IT TO ME HE SAID MESA AIRLINES TUMBLED 2 1/2 TO 18 1/2 FIRST BOSTON ANALYST GRETHA HONSVALD CUT HER EARNINGS ESTIMATES FOR THE FARMINGTON NM COMPANY'S FISCALTHIRD QUARTER ENDED IN JUNE TO 26 CENTS A SHARE FROM 30 CENTS SHE TRIMMED HER FISCAL 1993 ESTIMATE TO 94 CENTS A SHARE FROM 98 CENTS MS HONSVALD SAID YIELDS FOR THE QUARTER WILL BE WEAKER THAN SHE HAD ANTICIPATED OR DOWN ABOUT 3 INSTEAD OF DOWN 05 AIRLINE YIELDS REFER TO THE AVERAGE AMOUNT OF REVENUE THE CARRIER GETS FROM EACH PASSENGER MILE FLOWN ARBOR DRUGS TOPPLED 4 7/8 TO 15 7/8 ARBOR SAID BLUE CROSS OF MICHIGAN ONE OF ITS LARGEST THIRDPARTY INSURERS HAS ASKED IT TO PAY MORE THAN 17 MILLION TO SETTLE CLAIMS THAT THE COMPANY RECEIVED EXCESS REIMBURSEMENT IN A RELATED DEVELOPMENT ARBOR SAID THE US ATTORNEY FOR THE EASTERN DISTRICT OF MICHIGAN IS INVESTIGATING THE COMPANY'S THIRDPARTY REIMBURSEMENT PRACTICES FOR POSSIBLE CRIMINAL VIOLATIONS ARBOR SAID IT DOESN'T BELIEVE IT HAS ENGAGED IN ANY CRIMINAL ACTIVITY ON ITS FIRST TRADING DAY CYRK INTERNATIONAL EASED 5/8 TO 11 3/8 FROM ITS OFFERING PRICE OF 12 CYRK OFFERED TWO MILLION SHARES THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES OF THE SHARES OFFERED 17 MILLION WERE SOLD BY THE COMPANY AND THE REST BY SHAREHOLDERS THE GLOUCESTER MASS COMPANY MAKES AND DISTRIBUTES PRODUCTS FOR PROMOTIONAL PROGRAMS AND CUSTOMDESIGNED SPORTS APPAREL AND ACCESSORIES 9307080071 930708 FINANCING BUSINESS ECHO BAY MINES LTD ECHO BAY MINES LTD EDMONTON ALBERTA THIS PRECIOUS METAL MINING CONCERN SAID IT PLANS TO RAISE ABOUT 788 MILLION BY SELLING SIX MILLION SHARES THE COMPANY SAID IT WILL OFFER FOUR MILLION SHARES AT 13125 EACH AND TWO MILLION SHARES AT 16875 CANADIAN DOLLARS EACH 1314 ECHO BAY SAID IT WILL USE THE PROCEEDS TO FUND MINE DEVELOPMENT AND EXPANSION WORKING CAPITAL OR ACQUISITIONS THE COMPANY HAD 1052 MILLION SHARES OUTSTANDING AT LAST REPORT ECHO BAY SHARES CLOSED AT 1325 A SHARE YESTERDAY DOWN 625 CENTS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE THE OFFERING IS BEING UNDERWRITTEN IN THE US BY GOLDMAN SACHS & CO AND FIRST BOSTON CORP AND IN CANADA BY BURNS FRY LTD AND WOOD GUNDY INC 9307080070 930708 G7 NEGOTIATORS AGREE TO LOWER CERTAIN TARIFFS ACCORD AVERTS A DEADLOCK IN GLOBAL TRADE TALKS HOTTER ISSUES UNRESOLVED BY DAVID WESSEL AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO TRADE NEGOTIATORS FROM MAJOR INDUSTRIALIZED NATIONS AGREED TO LOWER TARIFFS ON A RANGE OF MANUFACTURED PRODUCTS PUSHING LONGSTALLED WORLD TRADE TALKS A STEP FORWARD AND AVERTING A POTENTIALLY DISASTROUS DEADLOCK BUT THE US CANADA THE EUROPEAN COMMUNITY AND JAPAN FAILED TO RESOLVE THE MOST CONTENTIOUS ISSUES FACING THEM WHICH WOULD HAVE REQUIRED THE GOVERNMENTS TO FACE DOWN POWERFUL DOMESTIC LOBBIES THIS PACKAGE WON'T CREATE A WAVE OF ENTHUSIASM FOR A TRADE DEAL SAID GARY HUFBAUER A TRADE ANALYST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS A THINK TANK IN WASHINGTON THE US HAS TO GET SOME JUICY RESULTS IN THE SERVICES SECTOR TO PUT TOGETHER AN ENTHUSIASTIC BUSINESS COALITION FOR THE PACKAGE AFTER INTENSE TALKS AT THE GROUP OF SEVEN SUMMIT HERE NEGOTIATORS AGREED TO ELIMINATE TARIFFS WITH SOME CONDITIONS ON NINE PRODUCT SECTORS RANGING FROM PHARMACEUTICALS TO LIQUOR AND TO KEEP TALKING ABOUT REDUCING TARIFFS ON OTHER GOODS FOR THE MOST PART THOUGH THE NEGOTIATORS SIMPLY FORMALIZED TARIFF CUTS THAT THE TRADING PARTNERS HAD PREVIOUSLY INDICATED THEY WOULD MAKE THAT FELL SHORT OF A BROAD TARIFFCUTTING COMPROMISE THAT COULD HAVE ASSURED A SUCCESSFUL END TO THIS ROUND OF TALKS OVER THE GENERAL AGREEMENT ON TARIFF AND TRADE BY A DEC 15 DEADLINE ONE OF SEVERAL REMAINING OBSTACLES IS US UNWILLINGNESS TO CUT TARIFFS ON TEXTILES AND APPAREL AS MUCH AS OTHER NATIONS ARE DEMANDING BUT THE CLINTON ADMINISTRATION HAS MADE CLEAR TO ITS COUNTERPARTS THAT IT CAN'T MOVE MUCH MORE RIGHT NOW IT CAN'T AFFORD TO ALIENATE ANY DEMOCRATIC SENATORS SEVERAL OF WHOM ARE FIERCE PROTECTORS OF THE INDUSTRY WHILE THE ADMINISTRATION'S BIG TAX BILL IS PENDING THE DEFECTION OF JUST ONE SENATOR WOULD VERY LIKELY DOOM THE TAX BILL AN ENTHUSIASTIC PRESIDENT CLINTON SAID THE BREAKTHROUGH WHICH CAME IN THE FORM OF A REPORT TO THE G7 SUMMIT BREAKS THE LOGJAM THE PACT HE SAID MEANS THAT THIS YEAR'S SUMMIT NOT ONLY HAS PROMISED PROGRESS AS PAST SUMMITS HAVE BUT HAS ACHIEVED SOMETHING SIR LEON BRITTAN THE EUROPEAN NEGOTIATOR SAID THE PROSPECTS OF A GLOBAL GATT DEAL HAVE BEEN GREATLY BRIGHTENED MOST IMPORTANT SAID JAGDISH BHAGWATI A COLUMBIA UNIVERSITY ECONOMIST WHO HAS LONG BEEN AN ADVISER TO GATT THE AGREEMENT STAVED OFF ANOTHER BREAKDOWN IN THE TRADE TALKS WHICH HAVE LIMPED ALONG FOR SEVEN YEARS THE DOWNSIDE WOULD HAVE BEEN ENORMOUS HE SAID IT WOULD HAVE BEEN LOOKED UPON AS A NAIL IN THE COFFIN TALKS RESUME MONDAY AT THE 108MEMBER GATT IN GENEVA WHERE NEGOTIATORS WILL TRY TO GET OTHER NATIONS TO COME UP WITH TARIFF CUTS AND OTHER MARKETOPENING MEASURES THE TRADE MINISTERS IN TOKYO PLEDGED TO ELIMINATE TARIFFS AND NONTARIFF BARRIERS ON PHARMACEUTICALS CONSTRUCTION EQUIPMENT MEDICAL EQUIPMENT BEER AND WITH IMPORTANT CAVEATS STEEL FURNITURE FARM EQUIPMENT AND DISTILLED SPIRITS WE SHALL SEEK TO ADD TO THIS LIST AS MANY SECTORS AS POSSIBLE THEY DECLARED THE NEGOTIATORS AGREED TO PHASE OUT MOST OF THE TARIFFS OVER FIVE YEARS AND DECIDED THAT ANY AGREEMENTS FOR CHEMICALS AND TEXTILES WOULD CALL FOR A 10YEAR PERIOD THE US WASN'T ALONE IN ITS FAINTHEARTEDNESS IN AN EFFORT TO KEEP FRANCE FROM TORPEDOING A DEAL THE EC WOULDN'T PRESS ITS SEMICONDUCTOR ALUMINUM AND MOVIE INDUSTRIES TO CUT TARIFFS OR OPEN MARKETS SIGNIFICANTLY AND JAPAN DIDN'T PRESS ITS WOOD AND PAPER INDUSTRIES BIG POLITICAL CONTRIBUTORS OR ITS FINANCIALSERVICES INDUSTRY ON THE VERY TOUGHEST SECTORS SCIENTIFIC EQUIPMENT WOOD PAPER ALUMINUM AND ELECTRONICS THE MINISTERS SAID ONLY THAT THEY WILL CUT TARIFFS BY AN AVERAGE OF AT LEAST ONETHIRD THEY SUGGESTED THAT THEY HAD IDENTIFIED A NUMBER OF SECTORS INCLUDING ELECTRONICS IN EUROPE WHERE TARIFFS COULD BE CUT AS MUCH AS 50 AND IN IMPORTANT SERVICE INDUSTRIES RANGING FROM MOVIES TO FINANCIAL SERVICES THERE WAS NO AGREEMENT AT ALL MAKING MATTERS EVEN MORE DIFFICULT GATT NEGOTIATORS STILL MUST COMPLETE NEGOTIATIONS OVER CONTENTIOUS AGRICULTURAL SUBSIDIES AN ISSUE NOT EVEN RAISED IN TOKYO THIS WEEK'S PROGRESS OCCURRED AMID THE PRESSURE OF A DEADLINE CREATED BY THE G7 SUMMIT AND THE PRESENCE OF THOUSANDS OF REPORTERS HUNGRY FOR SOMETHING TO REPORT WHEN NEGOTIATIONS BROKE AT 330 AM TUESDAY THE US WAS PRESSING TO ELIMINATE TARIFFS ON A LONG LIST OF SECTORS BUT THE EUROPEANS WOULDN'T CUT TARIFFS ON FARM EQUIPMENT UNLESS FURNITURE TARIFFS WERE ON THE LIST AND CANADA WOULDN'T AGREE TO LOWER FURNITURE TARIFFS UNLESS DISTILLED SPIRITS WERE INCLUDED FINALLY AFTER CONSULTING WITH PRIME MINISTER KIICHI MIYAZAWA THE JAPANESE AGREED WEDNESDAY MORNING TO ELIMINATE TARIFFS ON DISTILLED SPIRITSBUT ONLY ON COLORED LIQUOR SUCH AS WHISKEY AND SCOTCH BUT MR HUFBAUER THE TRADE ANALYST SAID JAPAN WAS WILLING TO RELENT BECAUSE IT PRODUCES SUCH POORQUALITY WHISKEY AND SCOTCH IMPORTS ALREADY CLAIM ABOUT A QUARTER OF THAT MARKET TARIFFS WILL REMAIN ON CLEAR LIQUOR SUCH AS VODKA AND GIN WHERE JAPAN IS MORE COMPETITIVE DESPITE THE CONCESSIONS FRENCH FOREIGN MINISTER ALAIN JUPPE DISMISSED YESTERDAY'S AGREEMENT AS SIMPLY A REPORT THAT SETS OUT THE TERMS FOR FUTURE NEGOTIATIONS AND OBJECTIVES FOR THESE NEGOTIATIONS THE EC'S SIR LEON WHO MUST BARGAIN WITH FRANCE AS WELL AS THE REST OF THE WORLD TRIED TO PUT THE BEST FACE ON THE DISAGREEMENTS THERE IS A DIFFERENCE BETWEEN A BREAKTHROUGH AND COMPLETION OF THE ROUND HE SAID IN CONTRAST TO THE LIMITED PROGRESS ON THE GATT FRONT SEPARATE TRADE TALKS BETWEEN THE US AND JAPAN HAVEN'T MOVED MUCH ALTHOUGH A SENIOR ADMINISTRATION OFFICIAL CAUTIONED YESTERDAY THAT THE ODDS OF STRIKING A DEAL ARE BELOW 50 MR MIYAZAWA INVITED MR CLINTON TO JOIN HIM AT A SUSHI RESTAURANT HERE TOMORROW NIGHT AN INDICATION THAT THE OUTGOING PRIME MINISTER IS STILL TRYING TO FIND A COMPROMISE TALKS RESUMED ONLY AFTER MR MIYAZAWA MADE A PERSONAL APPEAL TO MR CLINTON LAST WEEK ONE STICKING POINT CONTINUES TO BE THE US INSISTENCE THAT JAPAN AGREE ON WAYS TO MEASURE THE PROGRESS OF OPENING UP JAPAN TO IMPORTS AND INVESTMENTS A JAPANESE OFFICIAL SAID HIS COUNTRY PROPOSED A CLAUSE STATING THAT THE CRITERIA SHOULD NOT BE USED AS TARGETS OR COMMITMENTS FOR THE FUTURE BUT THAT FORMULATION ISN'T ACCEPTABLE TO THE US NEVERTHELESS A SENIOR US TREASURY OFFICIAL SAID THAT ANY ATTEMPT TO REDUCE THE COMPLEX NEGOTIATIONS TO A SINGLE PHRASE DOESN'T CAPTURE WHERE WE ARE RIGHT NOW BOB DAVIS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9307080069 930708 INTERNATIONAL BRIEF IMPERIAL CHEMICAL INDUSTRIES PLC STRATEGY TO STREAMLINE FIRM AND CUT STAFF IS OUTLINED THE CHIEF EXECUTIVE OFFICER OF IMPERIAL CHEMICAL INDUSTRIES PLC OUTLINED A NEW CORPORATE STRATEGY FOCUSED ON STREAMLINING THE BRITISH CHEMICAL CONCERN SPEAKING AT A CHEMICALS SEMINAR RONNIE HAMPEL SAID THAT IN THE PAST ICI JUST DIDN'T DRIVE ITS BUSINESSES GOOD OR BAD HARD ENOUGH MR HAMPEL SAID ICI WANTS TO CONTINUE ITS RESTRUCTURING AND COSTREDUCTION PROGRAMS MR HAMPEL SAID ICI WOULD CUT HEADQUARTERS STAFF EVENTUALLY TO 125 FROM 350 THE COMPANY WANTS TO FOCUS MORE SHARPLY ON CORE BUSINESSES THAT CAN BE WORLD LEADERS GONE ARE THE DAYS WHEN ICI OR ANY CHEMICAL COMPANY FOR THAT MATTER CAN AFFORD TO CARRY BUSINESSES IN WHICH WE HAVE NO COMPETITIVE ADVANTAGE HE INSISTED ICI WANTS TO GO FURTHER INTO INTERNATIONAL MARKETS PARTICULARLY THE ASIAPACIFIC REGION AND PROVIDE FUNDS FOR RESEARCH AND TECHNOLOGY 9307080068 930708 BUSINESS BRIEF SOUTHERN NEW ENGLAND TELEPHONE REGULATORS IN CONNECTICUT GRANT 35 REVENUE INCREASE STATE REGULATORS AWARDED SOUTHERN NEW ENGLAND TELEPHONE CO A 375 MILLION OR 35 REVENUE INCREASE WELL SHORT OF THE COMPANY'S 1593 MILLION OR 147 REQUESTED BOOST BASED IN NEW HAVEN CONN SOUTHERN NEW ENGLAND TELEPHONE A UNIT OF SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP PROVIDES TELECOMMUNICATIONS SERVICES IN THE STATE OF CONNECTICUT REGULATORS ALSO APPROVED A PLAN THAT CALLS FOR GREATER COMPETITION ACCELERATED INFRASTRUCTURE MODERNIZATION AND DEVELOPMENT OF MORE FLEXIBLE RATE STRUCTURES UNDER THE INFRASTRUCTURE MODERNIZATION PLAN SOUTHERN NEW ENGLAND TELEPHONE WILL INVEST ABOUT 130 MILLION EACH YEAR OVER THE NEXT FOUR YEARS TO MODERNIZE CONNECTICUT'S TELECOMMUNICATIONS INFRASTRUCTURE WE CONTINUE TO BE CONCERNED ABOUT SEVERAL ASPECTS OF THE DECISION A SPOKESMAN FOR SOUTHERN NEW ENGLAND TELEPHONE SAID AT A TIME WHEN WE FACE MORE COMPETITION IT FURTHER WEAKENS OUR FINANCIAL CONDITION THE COMPANY SAID IT HAS 45 DAYS TO STUDY THE DECISION PRIOR TO DECIDING WHETHER TO APPEAL 9307080066 930708 MARKETING BRIEF CAROLCO PICTURES INC SOME TERMS ARE SWEETENED IN RESTRUCTURING PROPOSAL CAROLCO PICTURES INC WHICH IS CONTROLLED BY SEVERAL FOREIGN INVESTORS SLIGHTLY SWEETENED CERTAIN TERMS OF ITS PROPOSED FINANCIAL RESTRUCTURING PLAN IN AN APPARENT EFFORT TO WIN THE SUPPORT OF ITS PUBLIC BONDHOLDERS THE SWEETENED TERMS OF THE LOS ANGELES COMPANY'S 14 SENIOR NOTES AND 13 SENIOR SUBORDINATED NOTES OUTSTANDING WERE DISCLOSED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION BY THE TROUBLED INDEPENDENT FILMPRODUCTION COMPANY AMONG THE CHANGES CAROLCO SAID HOLDERS OF THE 14 NOTES WOULD RECEIVE 1000 IN PRINCIPAL AMOUNT OF NEWLY ISSUED 115/10 SOCALLED REDUCING RATE SENIOR NOTES DUE 2000 FOR EACH 1000 PRINCIPAL AMOUNT OF 14 NOTES EXCHANGED PREVIOUSLY THOSE HOLDERS WERE TO RECEIVE 950 IN PRINCIPAL AMOUNT OF NEWLY ISSUED 10 SENIOR NOTES DUE 2003 A CAROLCO SPOKESWOMAN SAID THE REDUCING RATE SENIOR NOTES WOULD PAY 115 UNTIL CABLE GIANT TELECOMMUNICATIONS INC MAKES THE FIRST 10 MILLION INSTALLMENT OF ITS PREVIOUSLY ANNOUNCED PLANNED INVESTMENT IN CAROLCO 9307080065 930708 BUSINESS BRIEF SYMTEK SYSTEMS INC COMPANY DEFAULTS ON DEBT WIDER YEAR'S LOSS EXPECTED SYMTEK SYSTEMS INC SAID IT DEFAULTED ON ITS 7 CONVERTIBLE SUBORDINATED DEBENTURES AND EXPECTS TO POST A 1993 FISCALYEAR LOSS THAT IS SUBSTANTIALLY HIGHER THAN LAST YEAR'S LOSS IN THE YEAR ENDED MARCH 31 1992 THE MAKER OF TEST EQUIPMENT FOR THE SEMICONDUCTOR INDUSTRY HAD A NET LOSS OF 19 MILLION OR 124 A SHARE SYMTEK SHARES PLUMMETED 27 ON THE ANNOUNCEMENTS FALLING 10625 TO 29375 IN NATIONAL OVERTHECOUNTER TRADING SYMTEK BASED IN SAN DIEGO BLAMED THE WIDENED LOSS IN PART ON AN ANTICIPATED INVENTORY WRITEDOWN AND COSTS RELATED TO THE COMPANY'S RESEARCH AND DEVELOPMENT ACTIVITIES REVENUE IN THE LATEST YEAR WAS ABOUT 27 MILLION A 36 DECLINE FROM YEAREARLIER REVENUE OF 421 MILLION SYMTEK SAID IT IS IN TALKS WITH STATE FARM MUTUAL AUTOMOBILE INSURANCE CO BLOOMINGTON ILL HOLDER OF THE DEBENTURES OVER THE RESTRUCTURING OF 384000 IN SINKING FUND PAYMENTS AND INTEREST DUE APRIL 1 TALKS ARE ALSO CONTINUING WITH VARIOUS LENDERS TO PROVIDE NEW FINANCING THE COMPANY SAID SYMTEK SAID IT EXPECTS TO REPORT A MODEST PROFIT FOR THE FIRST QUARTER ENDED JUNE 30 9307080064 930708 HEARD ON THE STREET ANHEUSERBUSCH STOCK TASTES FLAT TO MANY BUT SOME INVESTORS HOPE TO TAP FUTURE GAINS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL VERY FEW PEOPLE ON WALL STREET TODAY ARE PROUD TO BE ANHEUSERBUSCH'S BUD MUTUAL FUNDS SOLD 17 MILLION MORE ANHEUSERBUSCH SHARES IN THE FIRST QUARTER THAN THEY BOUGHT AND THINGS HAVEN'T IMPROVED SINCE ZACKS INVESTMENT RESEARCH COUNTS ONLY SEVEN BROKERAGE FIRMS THAT RECOMMEND THE STOCK SIXTEEN RATE IT A HOLD A TEPID TERM THAT ON WALL STREET IS FREQUENTLY A EUPHEMISM FOR SELL BUT A FEW BRAVE INVESTORS SAY THE CROWD IS WRONG ABOUT ANHEUSERBUSCH THEY CONCEDE THE ST LOUIS BREWER HAS PROBLEMS NOTABLY THAT ITS FLAGSHIP BUDWEISER BRAND IS STRUGGLING BUT AT YESTERDAY'S PRICE OF 47 1/2 UNCHANGED THE SHARES ARE DOWN 21 FROM THEIR JANUARY HIGH OF 60 1/4 IN A MARKET THIRSTY FOR CHEAP STOCKS MAYBE NOW'S THE TIME TO HOIST A GLASS TO ANHEUSERBUSCH STOCK SYMBOL BUD I THINK IT'S GOOD VALUE HERE SAYS WOLODYMYR WRONSKYJ MANAGER OF DREYFUS FUND WITH PATIENCE I THINK INVESTORS WILL BE REWARDED WHAT AILS ANHEUSERBUSCH NOW TRADING AT A BELOWMARKET MULTIPLE OF 14 TIMES REPORTED EARNINGS THE BIGGEST PROBLEM IS THAT SALES OF BUDWEISER HAVE BEEN DECLINING FOR THREE YEARS INCREASED SALES OF BUD LIGHT AND BUSCH A LOWPRICED BRAND HAVE OFFSET BUD'S DECLINE BUT THE NET RESULT WILL BE ONLY A MINUSCULE GAIN IN TOTAL SALES THIS YEAR ANALYSTS SAY THE STOCK'S SLIDE ALSO REFLECTS A COUPLE OF SCARES THE TAX SCARE SEEMINGLY FALSE AND THE BRANDNAME SCARE WHICH HIT MANY STOCKS REMEMBER THE BEER TAX PRESIDENT CLINTON WAS CONSIDERING BOOSTING THE TAX ON BEER TO HELP BALANCE THE FEDERAL DEFICIT IN DEFERENCE TO JOE SIXPACK HE RELENTED BUT THE STOCK HAS NEVER REALLY BOUNCED BACK ANHEUSERBUSCH ALSO SANK ALONG WITH OTHER BRANDNAME MARKETERS' STOCKS AFTER PHILIP MORRIS SLASHED THE PRICE OF MARLBOROS THE FEAR WAS THAT CONSUMERS WOULD THROW OUT HIGHPRICED BRAND NAMES IN FAVOR OF GENERIC FOODS GENERIC CIGARETTES AND WAIT A SECOND THERE IS ALMOST NO GENERIC BEER STILL ANHEUSERBUSCH DOES FACE A PRICING PROBLEM LOWPRICED BEER BRANDS SUCH AS KEYSTONE FROM ADOLPH COORS MILWAUKEE'S BEST FROM PHILIP MORRIS'S MILLER BREWING UNIT AND ANHEUSER'S OWN BUSCH BRAND HAVE BEEN GAINING MARKET SHARE AND NOW HAVE ABOUT 20 OF THE MARKET THAT HURTS PREMIUM BRANDS SUCH AS BUDWEISER AND SUPERPREMIUM BRANDS SUCH AS MICHELOB WHICH ANHEUSERBUSCH ALSO OWNS CONCEIVABLY WORSE COULD FOLLOW WILLIAM LEACH OF DONALDSON LUFKIN & JENRETTE FEARS A MARLBOROTYPE FLAMEOUT IN THE STOCK IF ANHEUSERBUSCH SHOULD SUDDENLY WAKE UP AND ANNOUNCE THEY'RE CUTTING BUDWEISER PRICES 10 ROY BURRY OF KIDDER PEABODY DEEMS SUCH FEARS UNWARRANTED WHY BECAUSE THE GAP IN BEER PRICES IS NOWHERE NEAR AS WIDE AS THE SPREAD IN CIGARETTE PRICES USED TO BE IN CIGARETTES A MARLBORO USED TO COST ROUGHLY TWICE AS MUCH AS A LOWPRICED SMOKE BUT IN BEER THE GAP IS MUCH NARROWER A SIXPACK OF BUD RUNS ABOUT 335 COMPARED WITH ABOUT 285 FOR A SIXPACK OF THE LOWPRICED BRANDS AS THE ARGUMENTS FLY SKEPTICS ARE CLEARLY IN THE MAJORITY THE TOP LINE SALES GROWTH LOOKS DEAD SAYS JOSEPH DOYLE AN ANALYST WITH SMITH BARNEY INDUSTRY VOLUME IS BASICALLY FLAT AND ANHEUSERBUSCH DOES NOT SEEM TO BE GAINING MARKET SHARE WHICH IT USUALLY HAD THROUGH MUCH OF THE PAST 20 YEARS THE COMPANY IS STRUGGLING SAYS MARTIN ROMM A FIRST BOSTON ANALYST HE NOTES THAT ANHEUSERBUSCH HAS A BIG MARKET SHARE IN PARTS OF THE COUNTRY CALIFORNIA FLORIDA AND AREAS IN THE NORTHEAST WHERE THE ECONOMY IS PARTICULARLY SLUGGISH THE COMPANY'S RELATIVELY SMALL DIVERSIFICATION EFFORTS SUCH AS CAMPBELL TAGGART BAKED GOODS EAGLE SNACKS AND THEME PARKS INCLUDING SEA WORLD HAVEN'T HELPED BEER STILL ACCOUNTS FOR WELL ABOVE 90 OF PROFITS BUT THE BULLS ON BUD COULD STILL WIN OUT ESPECIALLY IF THEY'RE STARTING FROM A PRICE SOUTH OF 50 ANHEUSERBUSCH RECENTLY SIGNED JOINTVENTURE PACTS WITH BREWERS IN JAPAN MEXICO ITALY AND CHINA MAKING WHAT ANALYSTS SAY IS A LONGOVERDUE PUSH INTO OVERSEAS MARKETS ANHEUSERBUSCH ALSO HAS BEEN BUYING BACK ITS OWN STOCK A STEP THAT OFTEN HELPS PERSHARE EARNINGS IT RECENTLY FINISHED BUILDING A MAJOR BREWERY IN CARTERSVILLE GA SO IT CAN NOW AFFORD TO COAST FOR A WHILE ON CAPITAL SPENDING SAYS KIDDER'S MR BURRY JAMES RUSSO AN ANALYST AT DREYFUS FIGURES SALES IN 1992 AND IN THIS YEAR'S FIRST HALF WERE ARTIFICIALLY DEPRESSED LAST SUMMER WAS COLDER THAN NORMAL AND BECAUSE THE NEW PLANT WILL ALLOW ANHEUSERBUSCH TO FILL ORDERS MORE PROMPTLY THE COMPANY DIDN'T PUMP DISTRIBUTION CHANNELS FULL OF BEER LEADING INTO THIS SUMMER AS IT USED TO THE SHARES GOT HIT VERY HARD IN THE FIRST HALF OF THE YEAR MR RUSSO SAYS THIS HAS CREATED AN OPPORTUNITY IN THE STOCK NOTE 1992 FIGURES INCLUDE 767 MILLION CHARGE FROM ACCOUNTING CHANGE EQUAL TO 26 CENTS A SHARE PERSHARE FIGURES ARE FULLY DILUTED 9307080063 930708 TECHNOLOGY BRIEF SAMSUNG GROUP ELECTRONICS UNIT PRODUCES ROM FLASH MEMORY CHIPS SOUTH KOREA'S SAMSUNG ELECTRONICS CO SAID IT STARTED SAMPLE PRODUCTION OF READ ONLY MEMORY EIGHTMEGABYTE FLASH MEMORY CHIPS AFTER TUESDAY'S SUCCESS IN THE DEVELOPMENT OF THE CHIPS A SAMSUNG SPOKESMAN SAID THE COMPANY BELIEVED IT WAS SECOND AFTER TOSHIBA CORP OF JAPAN TO DEVELOP SUCH ROM FLASH MEMORY CHIPS THE SUCCESS OF THE CHIPS WHICH FEATURE BOTH THE FUNCTIONS OF ROM AND RAM RANDOM ACCESS MEMORY CAME AFTER MORE THAN TWO YEARS OF RESEARCH BASED IN SEOUL SAMSUNG ELECTRONICS CO A SUBSIDIARY OF CONGLOMERATE SAMSUNG GROUP IS SOUTH KOREA'S LARGEST MAKER OF ELECTRONICS PRODUCTS 9307080062 930708 BUSINESS BRIEF LAIDLAW INC WASTE CONCERN REPORTS LOSS OF 336 MILLION IN 3RD PERIOD LAIDLAW INC BURLINGTON ONTARIO REPORTED A NET LOSS OF 336 MILLION FOR ITS FISCAL THIRD QUARTER AFTER A NONRECURRING AFTERTAX CHARGE OF 75 MILLION TO REFLECT THE CLOSING OF SEVERAL OF ITS SOLIDWASTE LANDFILLS IN THE US THE COMPANY SAID IT WILL CLOSE IMMEDIATELY THREE LANDFILLS AND DISCONTINUE FIVE NEW LANDFILL PROJECTS THE CHARGE ALSO REFLECTS EXPECTED LOSSES AT TWO OTHER SITES OPERATING EARNINGS IN THE LATEST QUARTER ENDED MAY 31 DECLINED IN THE SOLIDWASTE AND HAZARDOUSWASTE DIVISIONS BY 24 AND 27 RESPECTIVELY HOWEVER PASSENGER SERVICES RECORDED A 12 RISE IN OPERATING EARNINGS COMPARED WITH THE YEAREARLIER PERIOD THE LATEST PERIOD'S LOSS WHICH EQUALS 12 CENTS A SHARE COMPARED WITH A PROFIT OF 388 MILLION OR 14 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE ROSE 51 TO 5438 MILLION FOR THE FIRST NINE MONTHS LAIDLAW HAD NET INCOME OF 434 MILLION OR 16 CENTS A SHARE DOWN FROM 1075 MILLION OR 41 CENTS A SHARE REVENUE ROSE 16 TO 153 BILLION 9307080061 930708 TECHNOLOGY & HEALTH COX PRODIGY PLAN COMPUTER NEWS NETWORK BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COX ENTERPRISES INC AND PRODIGY SERVICES CO SAID THEY ARE DEVELOPING A NETWORK THAT WOULD ENABLE NEWSPAPERS ACROSS THE COUNTRY TO SELL INFORMATION SERVICES THROUGH HOME COMPUTERS AND EVENTUALLY CABLE TELEVISION THE TWO COMPANIES SAID THEY WILL BEGIN THE SERVICE AT COX'S NEWSPAPERS IN ATLANTA AND WEST PALM BEACH FLA LATER THIS YEAR TERMS WEREN'T DISCLOSED FOR NEWSPAPERS PARTICULARLY SMALLER CHAINS THE NETWORK OFFERS THE OPPORTUNITY TO EXPAND INTO ELECTRONIC PUBLISHING THAT COULD ATTRACT MORE ADVERTISERS AND SUBSCRIBERS NOW WE'LL BE ABLE TO PUT IN LOCAL BULLETIN BOARDS AND GIVE EVERYTHING DOWN TO LITTLE LEAGUE AND BOWLING SCORES SAID DAVID E EASTERLY PRESIDENT OF COX NEWSPAPERS A DIVISION OF THE CLOSELY HELD CABLETV OWNER AND NEWSPAPER PUBLISHER FOR PRODIGY A HOMECOMPUTER SERVICE OWNED BY INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO THE VENTURE GIVES IT A NEW VEHICLE TO MARKET ITS PACKAGE OF FINANCIAL TRAVEL AND SHOPPING SERVICES SUBSCRIBERS TO THE NEW NETWORK WILL SEE PROMOTIONS FOR PRODIGY NEWSPAPER PUBLISHERS HAVE LONG SHOWN AN INTEREST IN ELECTRONIC PUBLISHING BUT MOST ARE MOVING CAUTIOUSLY AFTER MAJOR MISSTEPS BY LARGE PUBLISHERS IN THE 1980S TIMES MIRROR CO AND KNIGHTRIDDER INC LOST MILLIONS ON SUCH VENTURES MOST PUBLISHERS STILL HAVEN'T MOVED BEYOND LOWTECH FAX EDITIONS AND AUDIOTEXT SERVICES THAT PROVIDE STOCK QUOTES AND FILM REVIEWS BUT SOME ARE TAKING MORE SUBSTANTIAL STEPS CHICAGOBASED TRIBUNE CO HAS A MINORITY INVESTMENT IN AMERICA ONLINE INC A NATIONAL COMPUTER NETWORK THAT WILL CARRY THE ELECTRONIC VERSION OF THE CHICAGO TRIBUNE AND KNIGHTRIDDER'S SAN JOSE MERCURY NEWS HAS STARTED AN ELECTRONIC PUBLISHING SERVICE CALLED MERCURY CENTER IN WHICH PC OWNERS WITH MODEMS CAN RETRIEVE THE CONTENTS OF THE DAY'S PAPER AND ACCESS ELECTRONIC BULLETIN BOARDS THAT REACH THE PAPER'S EDITORS AND REPORTERS THE COXPRODIGY VENTURE COULD HELP NEWSPAPERS APPEAL TO YOUNGER READERS WHO SPEND LITTLE TIME WITH THE WRITTEN WORD TOM ADAMS AN ANALYST WITH PAUL KAGAN ASSOCIATES A MEDIA RESEARCH FIRM IN CARMEL CALIF SAID THE AGREEMENT APPEARED TO BE A GOOD FIT NEWSPAPERS HAVE TO GET IN ON THIS IF FOR NO OTHER REASON THAN TO PROTECT THEIR FLANK HE SAID BUT BRIAN BROOKS AN ASSOCIATE PROFESSOR AT THE UNIVERSITY OF MISSOURI SCHOOL OF JOURNALISM QUESTIONED HOW MANY CONSUMERS WILL BE ABLE TO TAP INTO THE NETWORK AND BECOME REGULAR USERS THERE'S ONE SURE AUDIENCE THE COMPUTER JUNKIE WILL BUY IT BECAUSE IT'S THERE